1q 2007 Financial Statements 3 PDF

PERUSAHAAN PERSEROAN (PERSERO)
PT PERUSAHAAN LISTRIK NEGARA

AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIODS ENDED
MARCH 31, 2007 AND 2006 (UNAUDITED)
AND INDEPENDENT ACCOUNTANTS REPORT
PERUSAHAAN PERSEROAN (PERSERO) PT PERUSAHAAN LISTRIK NEGARA

AND ITS SUBSIDIARIES
TABLE OF CONTENTS
Page
DIRECTORS STATEMENT LETTER
INDEPENDENT ACCOUNTANTS REPORT
CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2007 and

2006 (unaudited) and for the three-month periods then ended
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Changes in Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Accountants Report

No. 120607 PLN KS SR
The Stockholders, Board of Commissioners and Directors
PERUSAHAAN PERSEROAN (PERSERO) PT PERUSAHAAN LISTRIK NEGARA
We have reviewed the accompanying consolidated balance sheets of Perusahaan Perseroan (Persero)
PT Perusahaan Listrik Negara and its subsidiaries as of March 31, 2007 and 2006, and the related
consolidated statements of income, changes in equity, and cash flows for the three-month periods then
ended. These consolidated financial statements are the responsibility of the Company's management.
We conducted our reviews in accordance with the standards established by the Indonesian Institute of
Accountants. A review of financial statements consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion regarding the financial statements
taken as a whole. Accordingly, we do not express such an opinion.
Based on our reviews, we are not aware of any material modifications that should be made to such
consolidated financial statements for them to be in conformity with accounting principles generally
accepted in Indonesia.
As discussed in Note 38 to the consolidated financial statements, the Company recognized revenue
from electricity subsidy on accrual basis which was computed in accordance with provisions of the Rule
of the Ministry of Finance of the Republic of Indonesia No. 126/PMK.02/2006 dated December 15, 2006
amounting to Rp 6,775,461 million in 2007 and Rp 5,146,212 million in 2006. The final amount of
electricity subsidy in a budget year is based on the result of the compliance audit of the usage of the
electricity subsidy. The final amount of the electricity subsidy could be different from the amount of
electricity subsidy which had been recognized as revenue by the Company.
As discussed in Note 35 to the consolidated financial statements, the Company and its subsidiaries had
an obligation to pay interest on final income tax payable on the revaluation increment on property, plant
and equipment. Accordingly, the Company and its subsidiaries have accrued interest expense
amounting to Rp 465,939 million for the three-month period ended March 31, 2006. Subsequently, the
interest was assumed by the Government of Indonesia on December 28, 2006, and the Company has
recognized as income.
OSMAN RAMLI SATRIO & REKAN
Kasner Sirumapea, BAP

License No. 03.1.0839
June 12, 2007
The accompanying consolidated financial statements are not intended to present the financial position, results of
operations and cash flows in accordance with accounting principles and practices generally accepted in countries
and jurisdictions other than those in Indonesia. The standards, procedures and practices to review and audit such
consolidated financial statements are those generally accepted and applied in Indonesia.

PT PERUSAHAAN LISTRIK NEGARA AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Figures in tables stated in millions of Rupiah)
Notes
2007
2006
2e,4,27,28
2f,5
2h,6
2w,47
2g,7
8,50
9,27
2i,2j,2u,10,49
198,642,265
11,282,691
599,089
57,939
974,548
1,230,403
4,544,493
1,331,000
175,764,209
19,792,767
402,444
8,435
2,187,631
1,050,547
1,585,765
2,217,670
218,662,428
203,009,468
2k,11
2h,12
16,925,944
1,061,980
8,527,102
901,752
2l,13,29
14,38
15
2,594,928
11,162,298
208,347
2,043,414
8,806,526
191,294
2m,16
17,47
2j,2u,18,49
4,650,302
193,335
702,667
3,727,419
365,888
700,380
37,499,801
25,263,775
256,162,229
228,273,243
ASSETS
NONCURRENT ASSETS
Property, plant and equipment - net of accumulated
depreciation of Rp 60,036,440 million in 2007 and
Rp 49,785,039 million in 2006
Construction in progress
Long-term investments
Deferred tax assets
Assets not used in operations
Receivables from related parties
Restricted cash in banks and time deposits
Other noncurrent assets
Total Noncurrent Assets
CURRENT ASSETS
Cash and cash equivalents
Short-term investments
Trade accounts receivable - net of allowance for doubtful
accounts of Rp 321,567 million in 2007 and
Rp 348,034 million in 2006
Receivables on electricity subsidy
Other receivables
Inventories - net of allowance for decline in value of
Rp 46,402 million in 2007 and Rp 36,265 million in 2006
Prepaid taxes
Prepaid expenses and advances
Total Current Assets
TOTAL ASSETS
See accompanying notes to consolidated financial statements

which are an integral part of the consolidated financial statements.
-2-

CONSOLIDATED BALANCE SHEETS
(Figures in tables stated in millions of Rupiah) - Continued
Notes
2007
2006
LIABILITIES AND EQUITY

EQUITY
Capital stock - par value of Rp 1 million per share
Authorized - 63,000,000 shares
Subscribed and fully paid - 46,107,154 shares
Additional paid-in capital
Revaluation increment on property, plant and equipment
Difference due to changes in equity of subsidiaries
Retained earnings (deficit)
Appropriated
Unappropriated
Total Equity
19,26
20,26
2e,4,21
2b,22
NONCURRENT LIABILITIES
Deferred revenue
Customers' security deposits
Deferred tax liabilities
Long-term liabilities - net of current maturities
Two-step loans
Government loans
Lease liability
Bank loans
Bonds payable
Electricity purchase payable
Employee benefit obligations
Other payables
Payable to related parties
Project cost payable
Total Noncurrent Liabilities
CURRENT LIABILITIES
Trade accounts payable
Related parties
Third parties
Taxes payable
Accrued expenses
Current maturities of long-term liabilities
Two-step loans
Government loans
Lease liability
Bank loans
Bonds payable
Other payables
Total Current Liabilities
46,107,154
24,064,398
77,640,558
59,915,695
1,894,149
(72,438,750)
139,137,339
1,894,149
(68,607,844)
141,014,110
2p,23
24
2w,47
6,357,826
4,172,296
7,571,971
5,969,338
3,874,492
5,847,605
2o,25
26
2e,27
28
2q,29
2t,30,33,53
2u,49
34,50
31
2o,32
12,705,538
3,672,408
13,541,363
23,504
12,877,074
6,714,961
11,952,436
438,397
133,167
1,116,490
81,277,431
12,826,451
3,989,200
2,091,279
6,820,115
11,028,989
707,857
91,110
370,666
53,617,102
33,50,53
33,53
2w,35,45,47
36
213,637
25,880,861
1,195,717
1,802,196
68,416
24,798,490
3,138,008
847,584
2o,25
26
2e,27
28
2q,29
2t,30,33,53
2u,49
34
1,828,112
316,793
775,084
13,982
600,000
376,322
1,258,519
1,486,236
35,747,459
2,011,401
316,793
4,267
140,909
1,145,016
1,171,147
33,642,031
256,162,229
228,273,243
TOTAL EQUITY AND LIABILITIES

-3-
46,107,154
26,018,533
77,640,558
59,915,695

CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2007 AND 2006 (UNAUDITED)
Notes
REVENUES
Sale of electricity
Customer connection fees
Government subsidy
Others
2r,37
2p,23
2s,38
39
Total Revenues
OPERATING EXPENSES
Fuel and lubricants
Purchased electricity
Maintenance
Personnel
Depreciation
Others
40
41,50
42
43,49
2e,4
44
Total Operating Expenses

INCOME FROM OPERATIONS
OTHER INCOME (CHARGES)
Interest income
Interest expense and financing charges
Gain (loss) on foreign exchange - net
Others - net
8,9,11,12
45
2d,51
46
Other Income (Charges) - Net

INCOME (LOSS) BEFORE TAX
TAX EXPENSE
2w,47
NET INCOME (LOSS)

BASIC EARNINGS (LOSS) PER SHARE
(In full Rupiah amount)
2x,48

-4-
2007
2006
18,120,851
131,119
6,775,461
176,211
16,838,059
122,449
5,146,212
126,276
25,203,642
22,232,996
13,714,596
4,088,627
1,122,100
1,585,489
2,656,369
861,170
12,876,430
3,691,180
982,388
1,355,090
2,504,655
715,528
24,028,351
22,125,271
1,175,291
107,725
175,713
(1,181,250)
(570,108)
(35,454)
112,581
(823,266)
2,367,039
(42,772)
(1,611,099)
1,613,582
(435,808)
1,721,307
(415,316)
(669,381)
(851,124)
1,051,926
(18,460)
22,815

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Note
Balance as of January 1, 2006
Additions during the period
Net income for the period
20
Balance as of March 31, 2006

Balance as of January 1, 2007
Additions during the period
Net loss for the period
Balance as of March 31, 2007
20
Paid-up capital
stock
Additional
paid-in capital
Revaluation
increment on
property, plant and
equipment
Difference due to
changes in equity
of subsidiaries
Retained earnings (deficit)

Appropriated
Unappropriated
Total equity
46,107,154
-
23,855,892
208,506
-
77,640,558
-
59,915,695
-
1,894,149
-
(69,659,770)
1,051,926
139,753,678
208,506
1,051,926
46,107,154
24,064,398
77,640,558
59,915,695
1,894,149
(68,607,844)
141,014,110
46,107,154
-
25,868,016
150,517
-
77,640,558
-
59,915,695
-
1,894,149
-
(71,587,626)
(851,124)
139,837,946
150,517
(851,124)
46,107,154
26,018,533
77,640,558
59,915,695
1,894,149
(72,438,750)
139,137,339

-5-

CONSOLIDATED STATEMENTS OF CASH FLOWS
2007
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
Cash paid to suppliers and employees
Cash paid for other operations
Cash generated from operations
Government subsidy received
Interest expense paid
Interest received
Income tax paid
Payment of taxes on revaluation increment of property, plant and
equipment
Net Cash Provided by Operating Activities
18,556,132
(12,941,810)
(79,695)
5,534,627
2,874,372
(660,367)
149,783
(883,107)
7,015,308
2006
17,443,830
(9,677,197)
(246,730)
7,519,903
(542,693)
105,337
(546,574)
(300,000)
6,235,973
CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment, construction in progress and
assets not used in operations
Decrease in receivables from related parties
Acquisition of long-term investments
Payment of payable on investment in shares of stock
Proceeds from sale of property, plant and equipment
Proceeds from sale of long-term investments
Increase in short-term investments
(334,944)
(44,316)
(3,750)
(18,600)
11,084
1,892
(79,615)
(886,658)
(5,847)
(45,741)
(5,750)
695
(471,906)
Net Cash Used in Investing Activities
(468,249)
(1,415,207)
(634,787)
(158,396)
9,100
(7,992)
(398,447)
(788,624)
(158,397)
2,236
(69,686)
(30,016)
-
(22,884)
(190,000)
(1,220,538)
(1,227,355)
5,326,521
3,593,411
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

Increase in restricted cash in bank
12,968,420
(1,368,997)
5,361,749
(428,058)
CASH AND CASH EQUIVALENTS AT END OF PERIOD
16,925,944
8,527,102
CASH FLOWS FROM FINANCING ACTIVITIES

Payment of two-step loans
Payment of Government loans
Proceeds from bank loans
Payment of bank loans
Payment of electricity purchase payable
Payment of payable on acquisition of property, plant and
equipment
Payment of notes payable
Net Cash Used in Financing Activities
NET INCREASE IN CASH AND CASH EQUIVALENTS

-6-

CONSOLIDATED STATEMENTS OF CASH FLOWS
SUPPLEMENTAL DISCLOSURES
Noncash investing and financing activities :
Acquisition of property, plant and equipment, construction
in progress and asset not used in operating through :
Drawdown of loans and project cost payable
Government equity participation
Capitalization of borrowing costs
Capitalization of depreciation expense
Other payables
Reclassification of short-term investments to
restricted time deposits
Conversion of receivables from related parties into
investment in shares of stock

-7-
2007
2006
108,927
150,517
30,023
2,666
46,116
115,068
208,506
49,933
2,742
21,380
983,000
160,000

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1.
GENERAL
a. Establishment and General Information
Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara (the Company) was established in
1961 as a unit of the Ministry of Energy and Public Works. The Company is a business continuation
of several Dutch electricity companies taken over by the Government of the Republic of Indonesia.
The Dutch electricity companies include among others: NV ANIEM, NV SEM, NV OJEM, NV EMS,
NV EMBALOM, NV GEBEO, NV OGEM and NV WEMI. Based on Government Regulation No. 19
year 1965, the Companys status was changed to that of a legal entity. Subsequently, based on
Government Regulation No. 30 year 1970, as amended by Government Regulation No. 18 year
1972, the Company became a Perusahaan Umum (Perum). Based on notarial deed of Sutjipto, SH,
No. 169 dated July 30, 1994, the Companys status was changed to a limited liability company and
was named Perusahaan Perseroan PT Perusahaan Listrik Negara or PT PLN (Persero). This
change was approved by the Minister of Justice in his decision letter No. C2-11.519.HT.01.01.Th.94
dated August 1, 1994 and was published in State Gazette of the Republic of Indonesia No. 73 dated
September 13, 1994, Supplement No. 6731.
The articles of association of the Company have been recently amended by notarial deed No. 54
dated September 15, 2006 of Imas Fatimah S.H., concerning the change of the period of service of
the Companys Directors and Commissioners and the authority of the President Director to conform
with laws, and regulation and authorized institution. This change was approved by the Minister of
Law and Human Rights of the Republic of Indonesia in his decision letter No. W7-02391 HT.01.04TH.2007 dated March 9, 2007.
In accordance with article 3 of the Companys articles of association, the scope of its activities is
mainly to provide the public with electricity. These activities include the construction of power plants,
transmission and distribution facilities, undertaking electricity power support business and conduct of
special assignments through the direction of the stockholders. In addition, the Company is allowed to
enter into agreements with other electricity power producers as well as to make investments in other
business entities.
The Company is domiciled in Jakarta, with 40 business unit offices spread all over Indonesia. The
Companys head office is located at Jl. Trunojoyo Blok M I No. 135, Jakarta.
Based on Law No. 19 year 2003, regarding State-Owned Enterprises (BUMN), the Government is
obliged to provide compensation to these BUMN which were appointed to perform special
assignment, for all expenses which they have incurred, including expected return (margin). The
Company is a BUMN, which performs a special assignment of providing electricity power with
subsidy to the public (Note 38).
b. Public Offering of Bonds of the Company
On October 16, 2006, Majapahit Holding B.V., Netherlands, a wholly-owned special-purpose
subsidiary of the Company, issued Guaranteed Notes with aggregate principal amounts of US$ 450
million, interest rate of 7.25% per annum, terms of 5 years due in 2011 and US$ 550 million, interest
rate of 7.75% per annum, terms of 10 years due in 2016. These Guaranteed Notes are listed on the
Singapore Exchange Securities Trading Limited (Note 3).
On June 21, 2006, the Company issued PLN VIII Bonds Year 2006 with total nominal value of
Rp 2,200,100 million consisting of Series A bonds with nominal value of Rp 1,335,100 million, terms
of 10 years due in 2016 and fixed interest rate of 13.60% per annum; and Series B bonds with
nominal value of Rp 865,000 million, terms of 15 years due in 2021 and fixed interest rate of 13.75%
per annum. The Company also issued Syariah Ijarah PLN I Bonds Year 2006 with nominal value of
Rp 200,000 million, terms of 10 years and due in 2016. These bonds were listed on the Surabaya
Stock Exchange on June 22, 2006.
-8-

On November 11, 2004, the Company issued 150,000 PLN VII Bonds Year 2004 with nominal value
of Rp 1.5 trillion, terms of 10 years due in 2014, and fixed interest rate of 12.25% per annum. These
bonds were listed on the Surabaya Stock Exchange on November 12, 2004.
On August 11, 1997, the Company issued 1,400 PLN VI Bonds Year 1997, consisting of Series A,
Series B and Series C bonds with total nominal value of Rp 600 million, terms of 10 years due in
2007 and with both fixed and floating interest rates. These bonds were listed on Surabaya Stock
Exchange on August 12, 1997.
The Company also issued PLN I Bonds Year 1992, PLN II Bonds Year 1993, PLN III Bonds Year
1995, PLN IV Bonds Year 1995 and PLN V Bonds Year 1996. These bonds were fully paid.
c. Employees, Directors and Commissioners
At March 31, 2007 and 2006, the Companys management consisted of the following:
March 31, 2007
President Commissioner
Commissioners
:
:
Independent Commissioners
President Director
Director of Generation and Primary Energy
Director of Commerce and Customer Services
Director of Transmision and Distribution
Director of Finance
Director of Human Resources and Organization
Audit Committee
Chairman
Members
March 31, 2006
Alhilal Hamdi
Isnuwardianto
Komara Djaja
Bambang Permadi
Soemantri Brodjonegoro
Lutfi Hamid
Alhilal Hamdi
Isnuwardianto
Komara Djaja
Bambang Permadi
Soemantri Brodjonegoro
Lutfi Hamid
:
:
:
:
:
:
Eddie Widiono Suwondho

Ali Herman Ibrahim
Sunggu Anwar Aritonang
Herman Darnel
F. Parno Isworo
Djuanda Nugraha Ibrahim
Eddie Widiono Suwondho

Ali Herman Ibrahim
Sunggu Anwar Aritonang
Herman Darnel
F. Parno Isworo
Djuanda Nugraha Ibrahim
:
:
Lutfi Hamid
Bambang PS Brodjonegoro
Maman Suparman
Erman Jaya Kusuma
Elok Tresnaningsih
Lalu Rusmiady
Bambang PS Brodjonegoro
Komara Djaja
Lalu Rusmiady
Setio Anggoro Dewo
Devy S. Nazahar
-
Starting May 3, 2006, Ali Herman Ibrahim and Eddie Widiono Suwondho were hindered in
performing their respective roles. On July 4, 2006, Ali Herman Ibrahim was able to perform his duties
again as the Director of Generation and Primary Energy while on September 4, 2006, Eddie Widiono
Suwondho took up again his role as the President Director.
Total compensation of the Companys commissioners and directors including salaries, facilities and
allowances, amounted to Rp 1,203 million in 2007 and Rp 1,089 million in 2006.
At March 31, 2007 and 2006, the Company and its subsidiaries had total number of employees of
46,676 and 46,369, respectively.
-9-

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a.
Consolidated Financial Statement Presentation

The consolidated financial statements have been prepared using accounting principles and
reporting practices generally accepted in Indonesia. Such consolidated financial statements are an
English translation of the Company and its subsidiaries statutory report in Indonesia, and are not
intended to present the financial position, results of operations and cash flows in accordance with
accounting principles and reporting practices generally accepted in other countries and
jurisdictions.
The consolidated financial statements, except for the consolidated statements of cash flows, are
prepared under the accrual basis of accounting. The reporting currency used in the preparation of
the consolidated financial statements is the Indonesian Rupiah, while the measurement basis used
is the historical cost, except for certain accounts which are measured on the bases described in the
related accounting policies.
The consolidated statements of cash flows are prepared using the direct method with
classifications of cash flows into operating, investing and financing activities.
b.
Principles of Consolidation
The consolidated financial statements incorporate the financial statements of the Company and
entities controlled by the Company and its subsidiaries (including special purpose entities). Control
is achieved where the Company has the power to govern the financial and operating policies of the
investee entity so as to obtain benefits from its activities. Control is presumed to exist when the
Company owns directly or indirectly through subsidiaries, more than 50% of the voting rights,
except where control on the subsidiary is intended to be temporary or the subsidiary operates
under severe long-term restrictions which significantly impair its ability to transfer fund to the
Company.
The results of subsidiaries acquired or disposed of during the period are included in the
consolidated statements of income from the effective date of acquisition or up to the effective date
of disposal, as appropriate.
Intercompany balances and transactions, including unrealized gains or losses on intercompany
transactions, are eliminated to reflect the financial position and the results of operations of the
Company and its subsidiaries as one business entity.
Changes in the value of investments due to changes in the equity of subsidiaries arising from
capital transactions of such subsidiaries with other parties are recognized in equity as difference
due to changes in equity of subsidiaries, and recognized as income or expenses in the period
when the investments are disposed of.
c.
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles
generally accepted in Indonesia requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could be different from these estimates.
- 10 -

d.
Foreign Currency Transactions and Translation

The books of accounts of the Company and its subsidiaries, except for Majapahit Holding B.V.
(MH) and Majapahit Finance B.V. (MF) are maintained in Indonesian Rupiah. Transactions during
the year involving foreign currencies are recorded at the rates of exchange prevailing at the time
the transactions are made. At balance sheet date, monetary assets and liabilities denominated in
foreign currencies are adjusted to reflect the rates of exchange prevailing at that date. The
resulting gains or losses are credited or charged to current operations, except those foreign
exchange differences which are capitalized as borrowing costs. Operating activities of MH and MF
are an integral part of the Companys activities, hence the books of accounts of MH and MF, which
are maintained in foreign currency, are translated into Rupiah using the same procedures adopted
by the Company.
e.
Property, Plant and Equipment

Direct Acquisition
Property, plant and equipment - direct acquisitions, except land, are stated at cost or revalued
amounts less accumulated depreciation. Property, plant and equipment include spare parts which
are used to ensure the continuity and stability of the power plant operations and electricity
installations necessary to produce and distribute electricity. Property, plant and equipment acquired
before 2002 were revalued in accordance with Government regulation. Revaluation increment on
property, plant and equipment was credited to a separate account under equity.
Property, plant and equipment, except land, are depreciated using the straight-line method based
on their estimated economic useful lives as follows:
Years
Buildings, reservoir and infrastructure
Installations and power plant
Transmission equipment
Distribution equipment
General equipment
Motor vehicles
Spare parts
Telecommunications and data processing equipment
10 47
13 30
37
15 37
48
35
10 25
5 10
Land is stated at cost or revalued amount and is not depreciated.

The cost of maintenance and repairs is charged to operations as incurred; expenditures which
extend the useful life of the asset or result in increased future economic benefits such as increase
in capacity and improvement in the quality of output or standard of performance are capitalized.
When assets are retired or otherwise disposed of, their carrying values and the related
accumulated depreciation are removed from the accounts, and any resulting gain or loss is
reflected in the current operations.
- 11 -

Leases
Lease transactions are recorded as capital leases when all of the following criteria are met :
1) The lessee has the option to purchase the leased asset at the end of the lease term at a price
mutually agreed upon at the inception of the lease agreement.
2) All periodic lease payments made by the lessee plus residual value shall represent a return of
the cost of leased asset and interest thereon as the profit of the lessor.
3) Minimum lease period is two years.
Lease transactions that do not meet the above criteria are recorded as operating leases.
Leased assets and lease liabilities under the capital lease method are recorded at the present
value of the total installments plus residual value (option price). Leased assets are depreciated
using the same method and estimated useful lives used for directly acquired property, plant and
equipment.
f.
Construction in Progress
Construction in progress represents costs directly related to the construction of property, plant and
equipment. Construction in progress is stated at cost, which includes borrowing costs during
construction on debt incurred to finance the construction and depreciation of property and
equipment that were used in the construction. Construction in progress is transferred to the
respective property, plant and equipment account when completed and ready for use.
g.
Assets Not Used In Operations

This account comprised of property, plant and equipment which are temporarily not used in
operations and assets which are held for disposal. Assets not used in operations are not
depreciated until these assets are used and held in service again. Assets for disposal are stated at
the lower of carrying amount or net realizable value.
h.
Investments
Investments in associated companies
An associate is an entity over which the Company and its subsidiaries are in a position to exercise
significant influence, but not control or joint control, through participation in the financial and
operating policy decisions of the investee.
The assets and liabilities and results of operations of associates are incorporated in these
consolidated financial statements using the equity method of accounting. Investments in
associates are carried in the consolidated balance sheet at cost as adjusted by post-acquisition
changes in the Company and its subsidiaries share of the net assets of the associate, less any
impairment in the value of the individual investments. Losses of the associates in excess of the
Company and its subsidiaries interest in those associates are not recognized except if the
Company and its subsidiaries have incurred obligations or made payments on behalf of the
associates to satisfy obligations of the associates that the Company and its subsidiaries have
guaranteed, in which case, additional losses are recognized to the extent of such obligations or
payments.
- 12 -

Other investments
Investments in shares of stock with ownership interest of less than 20% that do not have readily
determinable fair values and are intended for long-term investments are stated at cost. The
carrying amount of the investments is written down to recognize a permanent decline in the value
of the individual investments. Any such write-down is charged directly to current operations.
Time deposits
Time deposits with maturities of three months or less which are pledged as loan collateral and time
deposits with maturities of more than three months that are realizable within one year from balance
sheet date are presented as short-term investments and are stated at their nominal values.
i.
Deferred Charges
Costs of software and legal processing of landrights are deferred and amortized using the straightline method over their beneficial periods.
j.
Prepaid Expenses
Prepaid expenses are amortized over their beneficial periods using the straight-line method.
k.
Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and in banks and all unrestricted investments
with maturities of three months or less from the date of placement.
l.
Accounts Receivable
Accounts receivable are stated at their nominal value less allowance for doubtful accounts.
Allowance for doubtful accounts is provided based on a review of the status of the individual
receivable accounts at the end of the period. Receivable is written off when the account is
determined to be uncollectible.
The Company provides a general allowance for doubtful accounts at 3% of the balance of certain
accounts receivable. Receivables from disconnected customers are provided 50% allowance for
doubtful accounts, after applying the security deposits of the customers.
m.
Inventories
Inventories are stated at cost or net realizable value, whichever is lower. Cost is determined using
the moving average method.
n.
Impairment of Assets
When the carrying amount of an asset exceeds its estimated recoverable amount, the asset is
written down to its estimated recoverable amount, which is determined as the higher of net selling
price or value in use. Impairment of asset is recognized as loss on impairment of asset which is
charged to current operations.
o.
Two-step Loans
Two-step loans are recognized once the Withdrawal Authorization (WA) or other equivalent
documents are received by the Company from the lenders. Two-step loans are recorded and paid
at the amounts of drawdown or its equivalent in Rupiah if the drawdown is made in foreign
currencies.
- 13 -

p.
Deferred Revenue
Connection fees received from customers are deferred and amortized at the rate of 5% per annum
starting from the connection date.
q.
Issuance Costs of Bonds

Issuance costs of bonds are deducted directly from the related proceeds of the bonds to determine
the net proceeds. The difference between the net proceeds and the nominal value is amortized
using the straight-line method over the term of the bonds.
r.
Revenue and Expense Recognition

Revenue from sale of electricity is recognized based on electricity usage (kWh). Expenses are
recognized when incurred (accrual basis).
s.
Government Subsidy
Government subsidy of electricity which has been intended to subsidize the Companys customers
with certain tariff, is recognized as revenue on accrual basis which is computed in accordance with
the provisions stipulated in the Rule of Ministry of Finance of the Republic of Indonesia. The
difference between the amount of electricity subsidy that had been recognized as revenue and the
final result of electricity subsidy computation is recorded when the final result of electricity subsidy
computation is obtained.
t.
Troubled Debt Restructuring

The effect of debt restructuring involving modification of terms without transfer of assets or equity is
accounted prospectively from the date of restructuring. No gain on restructuring is recognized
unless the carrying amount of the payable (including interest and penalty) exceeds the total future
cash payments of principal and interest agreed in the new terms, without considering their present
values.
Gain on debt restructuring net of the related restructuring expenses and income tax, is recognized
in the year the restructuring is completed and is presented as an extraordinary item.
u.
Employee Benefits
Post-employment benefits
Post-employment benefits are determined using the Projected Unit Credit Method. The
accumulated unrecognized actuarial gains and losses that exceed 10% of the greater of the
present value of the defined benefit obligations and the fair value of plan assets, is recognized on
straight-line basis over the expected average remaining service years of the participating
employees. Past service cost is recognized immediately to the extent that the benefits are already
vested, and otherwise is amortized on a straight-line basis over the average period until the
benefits become vested.
The employee benefits obligation recognized in the balance sheet represents the present value of
the defined benefit obligation as adjusted for unrecognized actuarial gains and losses and
unrecognized past service cost, and reduced by the fair value of plan assets. Any asset resulting
from this calculation is limited to unrecognized actuarial losses and past service cost, plus the
present value of available refunds and reductions in future contributions to the plan.
- 14 -

Other long-term benefits
Other long-term benefits are determined using the Projected Unit Credit Method. Past service cost
and actuarial gains (losses) are recognized immediately to the current operations.
The other long-term employee benefit obligation recognized in the consolidated balance sheets
represents the present value of the defined benefit obligation.
v.
Provisions
Provisions are recognized when the Company and its subsidiaries have a present obligation (legal
or constructive) as a result of a past event, it is probable that the Company and its subsidiaries will
be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle
the obligation at the balance sheet date, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the cash flows estimated to settle
the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognized as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
w.
Income Tax
Current tax expense is determined based on the taxable income for the year computed using the
prevailing tax rates.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of assets and liabilities and their
respective tax bases. Deferred tax liabilities are recognized for all taxable temporary differences
and deferred tax assets are recognized for deductible temporary differences and tax loss
carryforward to the extent that it is probable that taxable income will be available in future periods
against which the deductible temporary differences and tax loss carryforward can be utilized.
Deferred tax is calculated at the tax rates that have been enacted or substantively enacted at the
balance sheet date. Deferred tax is charged or credited in the consolidated statement of income,
except when it relates to items charged or credited directly to equity, in which case the deferred tax
is also dealt with in equity.
Deferred tax assets and liabilities are offset in the consolidated balance sheet, except if these are
for different legal entities, in the same manner the current tax assets and liabilities are presented.
x.
Earnings (Loss) per Share

Basic earnings (loss) per share is computed by dividing earnings (loss) by the weighted average
number of shares outstanding during the period.
Diluted earnings (loss) per share is computed by dividing earnings (loss) by the weighted average
number of shares outstanding as adjusted for the effects of all dilutive potential ordinary shares.
- 15 -

y.
Segment Information
Segment information is prepared using the accounting policies adopted for preparing and
presenting the consolidated financial statements. The Company and its subsidiaries primary
reporting segment information is based on geographical segment, while their secondary reporting
segment information is based on business segment.
A geographical segment is a distinguishable component of an enterprise that is engaged in
providing products or services within a particular economic environment and that is subject to risks
and returns that are different from those of components operating in other economic environments.
A business segment is a distinguishable component of an enterprise that is engaged in providing
an individual product or service or a group of related products or services and that is subject to
risks and returns that are different from those of other segments.
3.
SUBSIDIARIES
The Company has ownership interests, directly or indirectly, in the following subsidiaries:
Subsidiaries
PT Indonesia Power (IP) and
and its subsidiaries
Nature of
Business
Domicile
Jakarta
Power generation
PT Cogindo Dayabersama
(CDB) *)
Jakarta
PT Artha Daya Coalindo

(ADC) *)
PT Indo Pusaka Berau
(IPB) ***)
PT Pembangkitan Jawa Bali
(PJB) and its subsidiary
PT PJB Service (PJBS) *)
Percentage of
Ownership
2007
2006
Commercial
Operations
Total assets before

elimination **)
2007
2006
100.0
100.0
1995
59,186
61,792
Cogeneration,
energy distribution,
energy service and
management
99.9
99.9
1999
64
73
Jakarta
Coal trading
60.0
60.0
1999
47
39
Berau
Power generation
50.0
50.0
2005
148
139
Surabaya
Power generation
100.0
100.0
1995
41,678
41,400
Surabaya
Service
95.0
95.0
2001
19
18
PT Pelayanan Listrik Nasional

Batam (PLN Batam)
Batam
Electricity supplier
100.0
100.0
2000
1,572
1,399
PT Indonesia Comnets Plus

(ICON)
Jakarta
Communications provider
100.0
100.0
2000
415
242
PT Prima Layanan Nasional

Enjiniring (PLNE)
Jakarta
Engineering, procurement
and construction
99.3
99.3
2003
21
26
PT Pelayanan Listrik Nasional

Tarakan (PLN Tarakan)
Tarakan
100.0
100.0
2004
221
195
PT Rekadaya Elektrika (RDE) *)
Jakarta
Electricity and engineering
68.1
68.1
2004
38
29
Majapahit Holding B.V. (MH)

and its subsidiary
Majapahit Finance B.V. (MF) *)
Netherlands
Finance
100.0
2006
9,340
Netherlands
Finance
100.0
2006
9,162
*) Indirect ownership
**) Stated in billions of Rupiah
***) IP has a power to govern the financial and operating policies of IPB, hence the financial statements of IPB was consolidated.
- 16 -

4.
PROPERTY, PLANT AND EQUIPMENT

January 1,
2007
Cost or revalued amount
Direct acquisitions
Land
General equipment
Motor vehicles
Spare parts
Telecommunication and data processing
equipment
Subtotal
Leased assets
Land
Subtotal
Total
Accumulated depreciation
Direct acquisitions
General equipment
Motor vehicles
Spare parts
equipment
Subtotal
Leased assets
Subtotal
Total
Net Book Value
Additions
Deductions
March 31,
2007
7,571,799
27,594,012
91,490,256
48,855,340
60,190,299
2,970,285
521,041
422,316
1,265
29,733
155,657
420,271
361,004
35,073
1,204
8,832
2,242
2,134
9,390
14,637
11,329
972
15,768
10,667
7,570,822
27,621,611
91,636,523
49,260,974
60,539,974
3,004,386
506,477
420,481
2,254,694
241,870,042
39,717
1,052,756
2,727
69,866
2,291,684
242,852,932
58,591
15,767,182
15,825,773
257,695,815
1,052,756
69,866
58,591
15,767,182
15,825,773
258,678,705
4,760,808
25,132,752
7,718,217
15,991,070
1,886,955
383,448
137,694
220,853
1,228,013
433,409
587,178
83,486
17,757
5,724
1,055
7,710
3,483
10,062
854
15,864
2,821
4,980,606
26,353,055
8,148,143
16,568,186
1,969,587
385,341
140,597
1,179,874
57,190,818
45,352
2,621,772
2,034
43,883
1,223,192
59,768,707
121,741
121,741
57,312,559
145,992
145,992
2,767,764
43,883
267,733
267,733
60,036,440
200,383,256
- 17 -
198,642,265

January 1,
2006
Direct acquisitions
Land
General equipment
Motor vehicles
Spare parts
equipment
Total
Direct acquisitions
General equipment
Motor vehicles
Spare parts
equipment
Total
Net Book Value
Additions
Deductions
March 31,
2006
7,364,101
24,025,871
87,178,629
43,623,767
57,707,691
2,496,087
514,116
411,497
14,706
29,584
152,054
179,831
463,824
44,351
6,309
3,270
3,142
1,533
1,522
9,570
31,495
1,575
2,308
5,453
7,375,665
24,053,922
87,329,161
43,794,028
58,140,020
2,538,863
518,117
409,314
1,358,685
224,680,444
32,641
926,570
1,168
57,766
1,390,158
225,549,248
3,880,372
20,559,691
6,364,295
13,728,639
1,576,904
349,789
125,259
193,528
1,236,761
406,809
565,696
72,173
13,781
4,893
637
1,043
50
14,368
4,024
919
1,042
4,073,263
21,795,409
6,771,054
14,279,967
1,645,053
362,651
129,110
704,144
47,289,093
24,998
2,518,639
610
22,693
728,532
49,785,039
177,391,351
175,764,209
Depreciation expense was allocated to the following :

2007
Operating expenses
Construction in progress
Total
2,656,369
2,666
2,659,035
2006
2,504,655
2,742
2,507,397
Additions to property, plant and equipment - direct acquisitions include the transfer from construction in
progress, which has been completed and ready for operations amounting to Rp 792,876 million in 2007
and Rp 735,031 million in 2006, and assets not used in operations which were used in services again
amounting to Rp 21,310 million in 2007 and Rp 49,006 million in 2006.
Property, plant and equipment direct acquisitions deductions include transfers to assets not used in
operations amounting to Rp 19,030 million in 2007 and Rp 7,264 million in 2006.
The Company and its subsidiaries own several pieces of land with Rights to Use (Hak Pakai), Building
Use Rights (Hak Guna Bangunan). Rights to Use have no expiration date while Building Use Rights will
expire between 20 to 30 years until 2016 to 2034. The Company and its subsidiaries also have several
pieces of land, which are still being processed for extension and transfer of the certificate in the name of
the Company and its subsidiaries.
- 18 -

The Company and its subsidiaries revalued certain property, plant and equipment as of January 1,
2002. The revaluation was made in accordance with Decision Letter of the Minister of Finance of the
Republic of Indonesia No. 486/KMK.03/2002 dated November 28, 2002 and Decision Letter of the
Directorate General of Taxes No. KEP-519/PJ/2002 dated December 2, 2002. In 2002, the Company
and its subsidiaries obtained approval on the revaluation and received decision letters concerning the
final income tax on the revaluation increment of such assets from the Directorate General of Taxes. In
2003, the Company and its subsidiaries requested for a reduction in final income tax on the revaluation
increment and the Directorate General of Taxes has approved such tax reduction in its decision letters.
The revaluation of the Company and its subsidiaries property, plant and equipment was conducted by
PT Sucofindo Appraisal Utama, an independent appraiser, in its report No. 124-REV/SAUAPP/PST/XII/02 dated February 28, 2003. The revaluation was determined using the cost and market
approach method.
When the revaluation was recorded in the beginning year of 2002, the accumulated depreciation of
property, plant and equipment was eliminated against the cost of property, plant and equipment and the
net book value was adjusted to the revalued amount of the related property, plant and equipment.
The details of property, plant and equipment which were appraised are as follows :
Total carrying
amount before
revaluation
Land
Building, reservoir and infrastructure
General equipment
Motor vehicles
Spare parts
equipment
Total
The Company
Revaluation
increment
Total carrying
amount after
revaluation
654,139
5,524,597
9,593,766
12,704,598
15,263,873
1,290,599
177,651
187,461
2,161,512
1,609,018
5,811,685
21,391,505
34,812,000
(373,301)
156,975
23,735
2,815,651
7,133,615
15,405,451
34,096,103
50,075,873
917,298
334,626
211,196
766,311
46,162,995
(77,068)
65,516,061
689,243
111,679,056
General equipment
Motor vehicles
Spare parts
equipment
Total
1,018,065
2,698,075
2,593,448
4,525,564
1,056,149
125,347
40,372
(1,018,065)
(2,698,075)
(2,593,448)
(4,525,564)
(1,056,149)
(125,347)
(40,372)
384,645
12,441,665
(384,645)
(12,441,665)
Net Book Value
33,721,330
77,957,726
- 19 -
111,679,056

Total carrying
amount before
revaluation
Land
General equipment
Motor vehicles
Spare parts
equipment
Total
Its subsidiaries
Revaluation
increment
Total carrying
amount after
revaluation
323,455
4,444,493
19,134,034
162,109
294,875
580,938
53,483
4,665
3,800,671
10,711,679
45,545,083
17,364
278,295
(126,243)
11,846
2,658
4,124,126
15,156,172
64,679,117
179,473
573,170
454,695
65,329
7,323
38,053
25,036,105
(3,822)
60,237,531
34,231
85,273,636
1,011,517
4,140,059
9,831
14,693
473,679
48,956
530
(1,011,517)
(4,140,059)
(9,831)
(14,693)
(473,679)
(48,956)
(530)
9,838
5,709,103
(9,838)
(5,709,103)
Net Book Value
19,327,002
65,946,634
85,273,636
Total
53,048,331
143,904,360
196,952,691
General equipment
Motor vehicles
Spare parts
equipment
Total
The revaluation increment on the Companys property, plant and equipment was presented as
Revaluation increment on property, plant and equipment account as part of equity. The revaluation
increment of the subsidiaries property, plant and equipment was recognized by the Company based on
percentage of the Companys ownership in the subsidiaries and presented as Difference due to
changes in equity of subsidiaries account as part of equity (Notes 21 and 22).
As of March 31, 2007, installations and power plant and transmission equipment were insured to several
insurance companies in which PT Asuransi Tugu Kresna Pratama acted as lead underwriter against fire
and other possible risks with insurance coverage of US$ 11,669 million and Rp 513,064 million, and
leased assets were insured to PT Asuransi Mitsui Sumitomo Indonesia against fire and other possible
risks with insurance coverage of US$ 1,400 million. Management believes that the insurance coverage
is adequate to cover possible losses on the assets insured. The Company and its subsidiaries do not
cover insurance protection for assets other than installations, power plant and transmission equipment.
Certain distribution equipment are used as collateral for bank loans (Note 28).
Leased assets represent the PLTU Tanjung Jati B 2 x 660 MW power plant. The acquisition cost of
leased assets includes value added tax amounting to Rp 1,402,704 million. Leased assets were used
as collateral of lease liability (Notes 10 and 27).
Management believes that there are no events or changes in circumstances which may indicate an
impairment in value of property, plant and equipment as of the balance sheet date.
- 20 -

5.
CONSTRUCTION IN PROGRESS
This account represents costs incurred in relation to the construction and renovation/betterment of
power supply facilities, as follows :
2007
2006
Power plants
Transmission
Distribution
Equipment
Total
5,190,579
4,956,222
1,116,540
19,350
11,282,691
10,059,847
8,530,799
1,148,582
53,539
19,792,767
Power plants under construction consist mainly of PLTU Tarahan 2 x 100 MW (Unit 3 and 4), PLTU
Labuhan Angin 2 x 115 MW, PLTP Sarulla 300 MW, PLTP Lahendong 3 x 20 MW and PLTA Ampel
Gading 2 x 7.5 MW. PLTP Sarulla is a geothermal power plant which was taken over on January 23,
2004 from Unocal North Sumatera Geothermal Ltd. for US$ 60 million. Transmission under construction
consists mainly of transmission network in Java and Bali. Constructions in progress as of March 31,
2007, are expected to be completed between 2007 and 2010.
Borrowing costs, including interest expense and foreign exchange differences, which were capitalized
to construction in progress amounted to Rp 30,023 million in 2007 and Rp 49,933 million in 2006.
impairment in value of construction in progress as of the balance sheet date.
6.
LONG-TERM INVESTMENTS
Long-term investments consist of investments in shares of stock and consortiums, as follows:
Domicile
Direct ownership
PT Geo Dipa Energi
PT Unelec Indonesia
Indirect ownership
PT Daya Citra Mulia
PT Mitra Energy Batam
PT Sum ber Segara Primadaya
PT Dalle Energy Batam
PT Bajradaya Sentranusa
PT Indo Muba Power
PT Metaepsi Pejebe Power
Generation
PT Bukit Pembangkit Inovatif
PT Pura Daya Prim a
PT Elnusa Prima Elektrika
PT Multidaya Prima Elektrindo
PT Perm ata Prima Elektrindo
PT Tenaga Listrik Jayapura
PT Tenaga Listrik Bintan
PT TJK Power
Consortium s
CBE consortium
KSPM consortium
IP-NTP consortium
Indo Kupang Elektrindo Power
consortium
Nature of business
Commercial
operations
Percentage of ownership
2007
2006
Bandung
Jakarta
Electrical supports
2002
1988
33.00
32.35
33.00
32.35
Banjarmasin
Batam
Cilacap
Batam
Asahan
Jakarta
Jakarta
Coal mining and trading

2002
2004
2006
2006
*)
*)
2007
25.00
30.00
49.00
20.00
26.02
35.00
19.00
25.00
30.00
49.00
Palem bang
Palem bang
Palem bang
Jayapura
Pulau Bintan
Batam
Electricity
Electricity
Electricity
Electricity
Electricity
Electricity
Electricity
Electricity
*)
2007
2007
*)
*)
*)
*)
*)
20.00
15.00
7.50
15.00
15.00
20.00
10.00
10.00
Batam
Saguling
Bandung
Kupang
Ram ie plantation
*)
**)
*)
*)
55.00
49.00
80.00
51.00
South Sum atera

South Sum atera
*) Development stage
**) Under liquidation
- 21 -
supplier
supplier
supplier
supplier
supplier
supplier
supplier
supplier
26.02
35.00
19.00
15.00
7.50
10.00
55.00
49.00
80.00
51.00

Changes in long-term investments are as follows :
Carrying
amount
January 1,
2007
2007
Equity in net
income (loss)
of associates
Additions
for the current
(deductions)
year
Carrying
amount
March 31,
2007
PT Geo Dipa Energi

PT Unelec Indonesia
PT Daya Citra Mulia
PT Sumber Segara Primadaya
PT Indo Muba Power
Generation
PT Multidaya Prima Elektrindo
PT TJK Power
PT Bukit Pembangkit Inovatif
Other companies
Consortiums
CBE consortium
Other consortium
68,532
19,494
2,752
33,708
239,242
18,600
176,575
1,886
(3,196)
2,666
189
1,093
5,777
(539)
(216)
-
17,670
1,500
2,000
1,000
1,100
502
368
17,670
1,500
2,000
1,000
1,100
4,252
368
(1,892)
-
3,483
1,153
Total
591,457
5,375
1,153
Carrying
amount
January 1,
2006
3,750
1,858
5,774
2006
Equity in net
income (loss)
of associates
Additions
for the current
(deductions)
year
65,336
22,160
2,941
34,801
245,019
18,061
176,359
1,886
599,089
Carrying
amount
March 31,
2006
PT Geo Dipa Energi

PT Unelec Indonesia
PT Daya Citra Mulia
PT Indo Muba Power
Generation
PT TJK Power
Other companies
Consortiums
CBE consortium
Other consortiums
103,745
13,902
2,470
29,338
183,713
17,437
1,886
27,261
-
(8,803)
2,228
189
1,093
(216)
-
190
17,480
1,000
-
17,670
1,000
323
8,055
1,153
Total
362,212
45,741
(5,509)
323
8,055
1,153
- 22 -
94,942
16,130
2,659
30,431
210,974
17,221
1,886
402,444

Investment in shares of stock
PT Geo Dipa Energi is a joint venture between the Company and Pertamina. It was established to
continue the development of Dieng and Patuha power plant projects previously owned by Himpurna
California Energy Limited and Patuha Power Limited.
The acquisition cost of investment in shares of stock of PT Unelec Indonesia amounting to Rp 15,073
million was based on the Government Regulation No. 2/1998 dated January 7, 1998.
PLN Batam acquired 30% of PT Mitra Energy Batam from Yayasan Pendidikan dan Kesejahteraan PLN. Liabilities arising from such acquisition as of March 31, 2006 amounting to Rp 11,500 million were
fully paid in 2006 (Note 31).
PJB acquired 49% of PT Sumber Segara Primadaya (SSP). In 2006, PJB increased its investment by
Rp 27,261 million, without a corresponding change in its percentage share of ownership.
In 2006, PLN Batam acquired 20% of PT Dalle Energy Batam from PT Medco Power Indonesia. This
acquisition was approved during PLN Batams Extraordinary Stockholders General Meeting dated
June 29, 2006. Liability arising from such acquisition amounting to Rp 18,600 million was recorded as
other payables.
PJB acquired 26.02% of PT Bajradaya Sentranusa (BDSN), under a development stage on the
company engaged in electricity water power plant (PLTA Asahan). Based on President Decree year
2000, this project was postponed, and subsequently was continued in year 2002. In 2006, PJB obtained
an investment in Mandatory Convertible Bond (MCB) with par value of Rp 243,707 million and an
acquisition cost of Rp 160,000 million. MCB should be converted into 243,707 BDSNs shares with par
value of Rp 1 million per share (Note 8). PJB has converted the MCB to BDSN, without a corresponding
change in its percentage share of ownership. Investment in share of PJB in BDSN consisting of 262,707
shares were pledged as security for the loan of BDSN from China Huadian Hongkong Company
Limited.
PJB acquired 19% of PT Metaepsi Pejebe Power Generation. On February 16, 2006, PJB increased its
investment by Rp 17,480 million without a corresponding change in its percentage share of ownership.
PT Tenaga Listrik Jayapura (TLJ) and PT Tenaga Listrik Bintan (TLB) were established in accordance
with Joint Venture Agreements dated October 4, 2006 between PLN Tarakan and other parties. PLN
Tarakan acquired 20% of TLJ and 10% of TLB. The scope of activities of TLJ and TLB is to build,
operate and maintain a PLTU 2x10 MW project, including sale of electricity to the Company. Based on
the agreement, PLN Tarakan has an obligation to participate in financing both projects amounting to
US$ 9.6 million. This financing will be recovered upon commercial operations of the projects. In 2006,
PLN Tarakan has paid US$ 1,380,000 each to TLJ and TLB, which were recorded as receivables from
related parties. As of December 31, 2006, PLN Tarakan also had liabilities arising from acquisitions of
TLJ and TLB amounting to Rp 2,000 million and Rp 1,000 million, respectively. In 2007, such liabilities
have been offset against receivables based on mutual agreements.
In 2006, PLN Batam established PT TJK Power (TJK). PLN Batam owns 100% of TJK. On October 2,
2006, PLN Batam sold 90% of its shares in TJK. Furthermore, PLN Batam increased its investment by
Rp 900 million without a corresponding change in its percentage share of ownership.
In 2006, PJB acquired 20% of PT Bukit Pembangkit Inovatif. PJB has an obligation to operate and
maintain such power plant and also to contribute its investment in shares totaling to US$ 14.5 million
which have to be fully paid until 2009. In 2007, PJB increased its investment by Rp 3,750 million
without a corresponding change in its percentage share of ownership.
- 23 -

Consortium
IP and CDB entered into several consortium agreements with other parties for the development of
certain projects. IP and CDB account for the investment in these consortium agreements at cost based
on their funding of such projects, less any impairment. These consortium agreements will be changed
into limited joint venture companies when the development of the projects is completed or when the joint
venture companies are established.
impairment in value of long-term investments as of balance sheet date.
7.
ASSETS NOT USED IN OPERATIONS

2007
2006
Assets for relocation, disposal and repairs

At cost
Property, plant and equipment to be relocated
Property, plant and equipment to be disposed of
Property, plant and equipment to be repaired
Spare parts to be disposed of
Construction in progress to be disposed of
Total
652,182
1,625,788
282,452
175,937
16,831
2,753,190
681,566
1,395,164
241,557
162,089
15,652
2,496,028
Accumulated depreciation or decline in value

Property, plant and equipment to be relocated
Property, plant and equipment to be disposed of
Property, plant and equipment to be repaired
Spare parts to be disposed of
Construction in progress to be disposed of
Total
248,015
1,625,788
102,117
175,937
16,830
2,168,687
106,795
1,395,164
103,071
162,089
15,652
1,782,771
Carrying amount
Assets not yet used in operations
584,503
390,045
713,257
1,474,374
Total
974,548
2,187,631
Loss on impairment of property, plant and equipment amounted to Rp 119,286 million in 2007 and
Rp 102,366 million in 2006.
Certain assets not used in operations amounting to Rp 760 million in 2007 and Rp 695 million in 2006
were sold. The book value of such property, plant and equipment were nil, hence proceeds from the
sale represented gain on sale of property, plant and equipment (Note 46).
Property, plant and equipment to be relocated consist mainly of PLTG unit 2 Talang Duku, transmission
and distribution equipment.
Property, plant and equipment to be disposed of represent PLTD Apung in Nanggroe Aceh Darussalam,
pipe gas installations, machinery, building and infrastructure of PLTG Priok, housing and distribution
equipment.
Management believes that impairment for assets not yet used in operations is adequate to cover
possible loss on impairment on value of such assets.
- 24 -

8.
RECEIVABLES FROM RELATED PARTIES

2007
PT Sumber Segara Primadaya (US$ 57,307,898 in 2007 and
US$ 53,359,875 in 2006)
PT TJK Power
PT Tenaga Listrik Jayapura (US$ 1,158,271)
PT Tenaga Listrik Bintan (US$ 1,269,135)
Officers
Total
522,533
18,614
10,561
11,571
14,870
5,035
2,857
644,362
1,230,403
2006
484,241
5,035
561,271
1,050,547
On January 28, 2004, PJB granted a long-term loan of US$ 52 million to PT Sumber Segara Primadaya
(SSP) for financing of PLTU Cilacap project. This loan will mature in nine years, including two years
grace period, due on January 28, 2013 and bears interest at 12.907% per annum. The interest will be
received in 15 semi-annual installments starting January 28, 2006 until January 28, 2013. The principal
will be collected in 4 installments starting from July 28, 2011 to January 28, 2013. The loan was
approved during the Extraordinary General Meeting of the Stockholders dated January 14, 2004. The
receivable is secured by PT Sumber Energi Sakti Prima (SES), a shareholder of SSP, when SSP fails to
pay interest and/or principal amount to PJB 30 days after the due date. When SES fails to secure such
payment, the shares ownership of SES in SSP will be transferred to PJB, with the condition that SES will
have an option to repurchase such shares.
As of March 31, 2007 and 2006, interest on receivable from SSP amounting to Rp 48,397million and
Rp 12,341 million, respectively, were included in the principal amounts.
PJB also provided loan to PT Bajradaya Sentranusa (BDSN), due on May 7, 2005. This loan is used by
BDSN to restructure its bank loans. PJB charged interest to BDSN at the prevailing rate of Bank DBS
Indonesia since the funding of the loan was obtained from the same bank. Based on the Sale and
Purchase of Receivable Agreement dated February 9, 2006, PJB obtained from Jing Dian Power Co.,
Ltd. (JDP), Hong Kong, the investment in mandatory convertible bond of BDSN amounting to
Rp 243,707 million, due on September 30, 2006, and with zero interest rate in exchange of PJBs
receivable from BDSN amounting to Rp 160,000 million. The bond is convertible into 243,707 shares
with a nominal value of Rp 1 million each (Note 6).
As of March 31, 2007 and 2006, interest on receivable from BDSN amounting to Rp 5,035 million and
Rp 1,741 million, respectively, were included in the principal amounts.
Accounts receivable from PT TJK Power (TJK) represent advance payment made by PLN Batam for
development cost of PLTU Tanjung Kasam owned by TJK.
Accounts receivable from PT Dalle Energy Batam and PT Mitra Energy Batam represent power
purchase contract penalty receivable.
Accounts receivable from officers represent mainly non-interest bearing housing loans, which are paid
monthly through salary deduction.
No allowance for doubtful accounts was provided for receivables from related parties, as management
believes that all of these receivables are collectible.
- 25 -

9.
RESTRICTED CASH IN BANKS AND TIME DEPOSITS

2007
Restricted cash in banks
Sumitomo Mitsui Banking Corporation, Singapore (US$ 37,416,321 and JPY 42,324,888,953 in 2007 and
US$ 35,000,000 and JPY 4,665,362,878 in 2006)
Restricted time deposits
Bank Negara Indonesia - (US$ 100,000,000)
Others
Total
2006
3,624,727
676,765
911,800
7,966
4,544,493
907,500
1,500
1,585,765
Restricted cash in bank in Sumitomo Mitsui Banking Corporation, Singapore represents reserve
accounts for lease installment and for guarantee of operation, maintenance and fuel procurement of
PLTU Tanjung Jati B, Unit A and B (Note 27).
Time deposits owned by PJB in Bank Negara Indonesia were pledged as collateral for PT Sumber
Segara Primadayas (SSP) Letter of Credit facilities in relation to PLTU Cilacap Project. The full
payment of the used facilities is to be made by SSP in 2008, hence, such time deposits were restricted
for use until 2008.
10. OTHER NONCURRENT ASSETS
2007
2006
Deferred charges - net

Landrights
Software
Total
30,485
577,058
607,543
33,222
467,980
501,202
Prepaid expenses
Pension (Note 49)
Building and land rental
Others
Total
8,545
10,132
106,095
124,772
12,066
12,192
107,825
132,083
Advances
PT Central Java Power
Projects
Total
80
598,605
598,685
797,518
786,867
1,584,385
1,331,000
2,217,670
Total
Advances to PT Central Java Power represent mainly disbursement funds for import value added tax
(VAT) in relation to procurement of machinery power plant of PLTU Janjung Jati B. In 2006, such VAT
has already offset with the Companys VAT tax payable in accordance with handover of leased assets.
- 26 -

11. CASH AND CASH EQUIVALENTS
2007
Cash on hand
Cash in banks
Bank Mandiri
Rupiah
US$
EUR
JPY
Bank Negara Indonesia
Rupiah
US$
EUR
CHF
Bank Rakyat Indonesia
Rupiah
US$
JPY
EUR
Bank Bukopin
Rupiah
US$
Others (each below 5% of total)
Rupiah
US$
JPY
EUR
SGD
Total cash on hand and in banks
Cash equivalents - time deposits
Rupiah
US$
Bank Bukopin
Rupiah
US$
Rupiah
US$
Bank Mandiri
Rupiah
US$
Bank Century (CIC) - US$
Total time deposits
Total Cash and Cash Equivalents
Interest rate per annum on time deposits
Rupiah
US$
2006
45,097
54,016
923,080
994,053
543
456
1,355,885
414,260
9,406
1,526,994
615,728
257
3,583
2,717,455
401,936
5,483
3,241
2,091,668
1,395,373
1,847
23,759
1,034,138
124,789
24,876
21,976
1,571,111
952,370
1,387,409
-
720,159
55,006
1,299
180
3
10,922,566
706,389
142,688
121
8,404,068
521,598
2,735,400
22,193
-
233,500
911,800
6,000
-
20,000
911,800
28,240
-
176,661
227,950
227,950
36,719
6,003,378
31,601
35,000
123,034
16,925,944
8,527,102
6% - 14%
5% - 13.6%
3.75% - 4.84% 3.75% - 4.25%
- 27 -

Details of cash and cash equivalents in foreign currencies are as follows :
Original
currency *)
US$
JPY
EUR
Others **)
Total
*)
**)
2007
990,066,969
46,430,048
2,035,371
393,216
Rp
equivalent
9,027,430
3,602
24,739
3,586
9,059,357
Original
currency *)
2006
119,413,094
445,341,761
2,531,997
357,149
Rp
equivalent
1,083,673
34,282
27,580
3,241
1,148,776
In full amount
Cash and cash equivalents denominated in other foreign currencies are presented as US$ equivalents
using the exchange rates prevailing at balance sheet date
12. SHORT-TERM INVESTMENTS

2007
2006
225,000
45,590
324,010
18,150
Time deposits
Rupiah
US$
Bank Mandiri
Rupiah
US$
Bank Bukopin
Rupiah
US$
Total
117,147
324,000
305,000
216,524
8,168
144,760
155,000
41,500
1,824
1,060,061
32,150
1,815
900,577
Other investments
Total short-term investments
1,919
1,061,980
1,175
901,752
Interest rate per annum on time deposits

Rupiah
US$
7.75% - 11.59% 5.75% - 8.15%

3.70% - 4.75% 0.65% - 2.5%
- 28 -

As of March 31, 2007, time deposits, which were used as collateral, are as follows :
Placement
Bank Mandiri
Bank Bukopin
Total
Total
80,000
60
10,000
4,000
5,000
99,060
Used as collateral for :

Opening of letter of credit to purchase maintenance material by PJB
Bank guarantee facility, PLTU Project Labuan
Working capital loan of ADC
Bank guarantee facility, and PLTU Jayapura - Lot II-1
Working capital loan of ADC
13. TRADE ACCOUNTS RECEIVABLE

2007
2006
a. By Debtor
Public
Government
State-owned companies
Indonesian Armed Forces
Total
Allowance for doubtful accounts
2,106,978
307,740
37,250
464,527
2,916,495
(321,567)
1,657,451
289,900
34,974
409,123
2,391,448
(348,034)
Net
2,594,928
2,043,414
1 to 90 days
91 to 360 days
More than 360 days
Total
Allowance for doubtful accounts
1,477,731
966,435
472,329
2,916,495
(321,567)
1,044,749
914,614
432,085
2,391,448
(348,034)
Net
2,594,928
2,043,414
(314,973)
(6,959)
365
(321,567)
(341,031)
(32,550)
25,547
(348,034)
b. By Age Category
Changes in the allowance for doubtful accounts

Beginning balance
Additions
Write-off
Ending balance
- 29 -

Management believes that the allowance for doubtful accounts is adequate to cover possible losses on
uncollectible accounts. Management also believes that there are no significant concentration of credit
risk in receivables.
Trade accounts receivable are used as collateral for bank loans and PLN Bonds VI Year 1997 (Notes 28
and 29).
14. RECEIVABLES ON ELECTRICITY SUBSIDY
2007
Budget years (Note 38)
2005
2006
2007
Total
852,697
10,309,601
11,162,298
2006
3,660,314
5,146,212
8,806,526
As of March 31, 2006, the Company had the receivable on electricity subsidy for budget year 2005
amounting to Rp 3,660,314 million which is referred to the 2005 Companys computation of the
electricity subsidy of Rp 12,510,960 million based on the formula as stipulated in Rule of Minister of
Finance of the Republic of Indonesia No. 117/PMK.02/2005 dated November 29, 2005. On December
27, 2006, the Company obtained the final result of the 2005 electricity subsidy computation amounting
to Rp 10,639,968 million. The difference between the Companys computation and the final result of the
2005 electricity subsidy computation amounted to Rp 1,870,992 million, which was mainly due to the
transmission and distribution losses used by the Company were higher than the transmission and
distribution losses determined by the Directorate of General of Electricity and Energy Consumption.
Such difference was recorded as a deduction to the receivable on electricity subsidy for budget year
2005.
In February 2007, the Company has received the electricity subsidy receivables for budget year 2006
amounting to Rp 2,874,372 million.
In April 2007, the receivables on electricity subsidy for budget year 2007 amounting to Rp 5,248,102
million has realized by offseting against accounts payable to Pertamina.
15. OTHER RECEIVABLES
Contractors
Interest from accounts receivable
Others
Total
2007
2006
54,195
50,715
103,437
208,347
123,966
10,951
56,377
191,294
No allowance for doubtful accounts was provided for other receivables, as management believes that all
of these receivables are collectible.
- 30 -

16. INVENTORIES
2007
2006
Fuel and lubricants

Transformers
Switchgear and networking
Wire
Meter recording device and control equipment
General supplies
Total
Allowance for the decline in value
3,514,559
45,560
71,591
26,872
84,090
954,032
4,696,704
(46,402)
2,878,554
22,642
39,067
21,754
81,366
720,301
3,763,684
(36,265)
Net
4,650,302
3,727,419
(44,084)
(2,318)
(46,402)
(30,017)
(6,248)
(36,265)
Changes in allowance for the decline in value are as follows:

Beginning balance
Additions
Ending balance
Management believes that the allowance is adequate to cover possible losses on decline in value of
inventories.
The Company and its subsidiaries do not provide any insurance to cover the possible losses in
inventories.
17. PREPAID TAXES
2007
Overpayment of corporate income tax (Note 47)
The Company
2007
2006
2005
2004
Subsidiaries
2007
2006
2005
2004
2003
2002
Income tax article 15
Value added tax
Payment for tax assessment letters for underpayment and
tax collection notice
Total
- 31 -
2006
377
1,812
1,751
-
1,278
3,545
20,564
16,561
11,278
432
8,143
7,175
20,710
18,277
15,948
11,278
51
3,366
127,594
193,335
285,508
365,888
164
2,588
823

18. PREPAID EXPENSES AND ADVANCES
2007
2006
Prepaid expenses
Salaries and allowances
Pension (Note 49)
Insurance
Rent
Others
Total
232,305
169,132
21,717
16,391
37,035
476,580
204,312
230,504
42,985
19,780
53,260
550,841
Advances
Purchase
Others
Total
Total
198,074
28,013
226,087
702,667
124,851
24,688
149,539
700,380
19. CAPITAL STOCK

The Company has authorized capital of Rp 63,000,000 million consisting of 63,000,000 shares, with par
value of Rp 1 million per share.
Based on the extraordinary stockholders meeting dated July 18, 2001, as stated in deed No. 43 dated
October 26, 2001 of Haryanto, SH, notary in Jakarta, the stockholders approved to:
Convert the Companys payable to Government of Rp 28,781,355 million, which arose from overdue
interest and penalty on two-step loans, into Government Equity Participation (Note 26). The
conversion was approved by the Minister of Finance of the Republic of Indonesia in its decision letter
No. S-352/MK.06/2001 dated June 20, 2001.
Increase the subscribed and paid-up capital by Rp 28,781,354 million, resulting to the Companys
total subscribed and paid-up capital of Rp 46,107,154 million consisting of 46,107,154 shares with
par value of Rp 1 million per share.
On August 1, 2001, the Government issued Government Regulation No. 61 year 2001 in relation to the
increase in Government Equity Participation in the Company.
The Companys shares of stock are wholly owned by the Government of the Republic of Indonesia.
- 32 -

20. ADDITIONAL PAID-IN CAPITAL
Additional paid-in capital represents Government Equity Participation received by the Company since its
establishment, the status of which has not yet been determined as follows:
Project aid
DIP (Daftar Isian Proyek - List of Project Fund)
Regional Government participation and others
Excess amount of the overdue interest and
penalty over the two-step loans converted into
Government Equity Participation (Note 26)
Total
2007
2006
16,466,601
9,261,902
290,029
15,623,695
8,240,300
200,402
1
26,018,533
1
24,064,398
Project aid represents electricity project by the Government of the Republic of Indonesia transferred to
the Company.
DIP represents fund received from the Government of the Republic of Indonesia for electricity
development through the Department of Mining and Energy.
Regional Government participation represents land and electricity equipment donated by the Regional
Government to the Company.
21. REVALUATION INCREMENT ON PROPERTY, PLANT AND EQUIPMENT
The Company revalued its fixed assets as of January 1, 2002. The details of revaluation increment on
property, plant and equipment are as follows :
2007
and 2006
Difference between the carrying amount and revalued amount of property, plant
and equipment (Note 4)
Final income tax on revaluation increment on property, plant and equipment
Deferred tax effect
Deferred gain on transfer of property, plant and equipment
Total
77,957,726
(3,678,787)
2,810,162
551,457
77,640,558
Deferred gain on transfer of property, plant and equipment resulted from the transfer of the Companys
property, plant and equipment to PLN Batam and ICON, subsidiaries, when they were established.
- 33 -

22. DIFFERENCE DUE TO CHANGES IN EQUITY OF SUBSIDIARIES

This account represents the Companys interest on the changes in equity of subsidiaries as a result of
revaluation increment on property, plant and equipment of subsidiaries as follows:
2007
and 2006
Difference between the carrying amount and the revalued amount of property,
plant and equipment (Note 4)
Final income tax on revaluation increment on property, plant and equipment
Deferred tax effect
Minority interest
Total
65,946,634
(7,124,851)
1,093,989
(77)
59,915,695
The difference due to changes in equity of subsidiaries consists of the following:
2007
and 2006
PT Indonesia Power
PT Pembangkitan Jawa Bali
PT Pelayanan Listrik Nasional Batam
PT Indonesia Comnets Plus
PT Artha Daya Coalindo
Total
33,276,453
26,408,107
208,463
22,556
116
59,915,695
23. DEFERRED REVENUE
This account represents connection fees received from customers for electricity connection and
upgrading of electricity power, with details as follows :
2007
Beginning balance
Additions
Recognized as revenue during the period
Ending balance
6,252,377
236,568
(131,119)
6,357,826
2006
5,858,062
233,725
(122,449)
5,969,338
24. CUSTOMERS SECURITY DEPOSITS
This account represents security deposits from customers determined based on power supply and
electricity tariff. Customer deposits will be refunded, net of unpaid electricity bills, when customers stop
subscribing for electricity. The details are as follows:
2007
2006
Beginning balance
Net additions
Ending balance
4,128,328
43,968
4,172,296
- 34 -
3,795,907
78,585
3,874,492

25. TWO-STEP LOANS
This account represents overseas, collateral-free loans of the Government of the Republic of Indonesia
which are re-loaned to the Company to finance its projects. The details of two-step loans are as follows :
Foreign
currencies *)
International Bank for Reconstruction
and Development (IBRD)
Rupiah
US$
421,105,101
Asian Development Bank (ADB)
Rupiah
US$
183,236,704
Kreditanstalt Fur Wiederaufbau,
Jerman (KFW)
Rupiah
EUR
52,431,791
US$
22,858,001
United Stated Agency for International
Development (USAID)
Export-Import Bank of The United States
Rupiah
US$
6,321,607
Japan Bank for International Cooperation
JPY
25,115,171,471
US$
75,331,408
Generale Bank S.A., Belgia dan Barclay
Bank PLC - EUR
316,615
Midland Bank Public Limited Company
Banque Paribas
Rupiah
GBP
16,111,743
EUR
32,772,880
Bank Austria Aktiengesellschaft
Rupiah
EUR
8,885,772
Bank of China
China Exim Bank - US$
4,078,474
Mitsui Leasing - US$
1,666,743
Islamic Development Bank - US$
496,634
Calyon and BNP Paribas - EUR
6,724,396
Fortis Bank Belgia - EUR
2,012,023
West Merchant Bank Limited - GBP
4,126,691
ABN AMRO N.V. - EUR
21,315,296
MKB Hungaria - US$
1,146,416
Efic Australia - AUD
21,523,273
Kingdom of Belgium - EUR
1,616,310
Total
Total
2007
Current
maturities
Long-term
portion
Interest rate
%
Period **)
Years
1,155,985
3,839,637
277,419
320,296
878,566 IBRD + (1.65% - 3.50%)

3,519,341
IBRD + 0.5%
1987-2013
1994-2023
2,252,827
1,670,752
261,192
209,859
1,991,635
1,460,893
ADB + (1.75% - 3.75%)

ADB + 0.5%
1989-2016
1995-2027
362,068
637,272
208,419
75,720
117,660
19,832
286,348
519,612
188,587
7.6%-9% and SBI + 1%

KFW + 0.5%
4.75% + 0.35%
1980-2014
1997-2020
2004-2018
2,578
834
1,744
2%
1979-2009
960
57,640
960
31,773
25,867
8% or SBI + 1%
7.04% - 7.1%
1988-2008
1996-2008
1,948,435
686,872
98,955
-
1,849,480
686,872
4.7% + 4.8%
Floating + 0.85%
1996-2045
2005-2011
3,848
220,161
2,565
23,776
1,283
196,385
7.1%
SBI + 1%
1996-2008
1995-2020
2,455
288,308
398,331
2,455
18,019
32,154
270,289
366,177
SBI + 1%
3.84%
6.39%
1995-2007
1998-2022
1996-2018
3,510
108,000
989
37,188
15,197
4,528
81,730
24,455
73,844
259,072
10,453
158,491
19,645
3,510
20,445
989
11,412
648
6,811
1,223
73,844
198,973
909
15,879
-
87,555
37,188
3,785
3,880
74,919
23,232
60,099
9,544
142,612
19,645
SBI + 1%
4%
3.5% - SBI + 1%
3.5% + 0.5%
LIBOR + 1.2%
8%
5.32%
4.82%
6.45%
7.10%
4.81% + 0.5%
4%
4%
1995-2007
1996-2012
1995-2007
2004-2018
1997-2008
1996-2012
2004-2019
2005-2017
1996-2007
1995-2008
2004-2018
1998-2022
2005-2033
14,533,650
1,828,112
12,705,538
*) In full amount
**) Include grace periods in terms of payments
- 35 -

Foreign
currencies *)
International Bank for Reconstruction
and Development (IBRD)
Rupiah
US$
420,361,283
Asian Development Bank (ADB)
Rupiah
US$
203,179,069
Kreditanstalt Fur Wiederaufbau,
Germany (KFW)
Rupiah
EUR
41,473,014
US$
3,164,173
United Stated Agency for
International Development
(USAID)
Export-Import Bank of The
United States
Rupiah
US$
12,065,833
Japan Bank for International
Cooperation
Rupiah
JPY
26,478,731,635
US$
25,349,944
Meespierseon NV Belanda
Generale Bank S.A., Belgium and Barclay
Bank PLC
Rupiah
EUR
530,337
Midland Bank Public Limited Company
Swiss Bank
Banque Paribas
Rupiah
GBP
17,205,971
EUR
35,045,224
Ryoshin International (Hongkong)
Limited
Bank Austria Aktiengesellschaft
Rupiah
EUR
10,553,851
Bank of China
Sumisho Leasing - US$
1,273,683
Nebula Leasing - US$
11,426,542
Mitsui Leasing - US$
2,515,633
Islamic Development Bank - US$
1,425,893
Calyon and BNP Paribas - EUR
5,888,163
West Merchant Bank Limited - GBP
6,912,870
ABN AMRO N.V. - EUR
37,874,399
MKB Hungaria - US$
354,340
Efic Australia - AUD
22,080,732
Total
Total
2006
Current
maturities
Long-term
portion
Interest rate
%
Period **)
Years
1,312,900
3,814,779
291,998
245,508
1,020,902 IBRD + (1.65% - 3.50%)

3,569,271
IBRD + 0.5%
1987-2013
1994-2023
2,391,508
1,843,850
250,665
189,821
2,140,843
1,654,029
ADB + (1.75% - 3.75%)

ADB + 0.5%
1989-2016
1995-2027
505,103
451,755
28,715
145,863
49,959
13,632
359,240
401,796
15,083
7.6%-9% and SBI + 1%

KFW + 0.5%
4.75% + 0.35%
1980-2014
1997-2020
2004-2018
3,388
810
2,578
2%
1979-2009
27,804
109,498
12,964
31,879
14,840
77,619
8% or SBI + 1%
7.04% - 7.1%
1988-2008
1996-2008
16,259
2,038,332
230,051
2,338
16,259
273,214
2,338
1,765,118
230,051
-
SBI + 1%
4.7% - 4.8%
Floating + 0.85%
SBI + 1%
1995-2006
1996-2045
2005-2011
1995-2006
9,438
5,777
236,489
110,322
4,739
2,311
23,776
55,161
4,699
3,466
212,713
55,161
SBI + 1%
7.1%
SBI + 1%
SBI + 1%
1995-2007
1996-2008
1995-2020
1995-2007
16,321
272,206
381,739
13,866
16,012
14,468
2,455
256,194
367,271
SBI + 1%
3.84%
6.39%
1995-2007
1998-2022
1996-2018
13,324
6,627
6,697
SBI + 1%
1995-2007
10,532
114,960
2,968
11,559
103,696
22,829
12,940
64,138
109,365
412,556
3,216
147,197
14,837,852
7,022
24,609
989
11,559
51,848
3,805
12,940
43,746
179,213
13,800
2,011,401
3,510
90,351
1,979
51,848
19,024
64,138
65,619
233,343
3,216
133,397
12,826,451
SBI + 1%
4%
3.5% - SBI + 1%
LIBOR + 1.2%
LIBOR + 1.2%
LIBOR + 1.2%
8%
5.32%
6.45%
7.10%
4.81% + 0.5%
4%
1995-2007
1996-2012
1995-2007
1995-2007
1996-2007
1997-2008
1996-2012
2004-2019
1996-2007
1995-2008
2004-2018
1998-2022
*) In full amount
**) Include grace periods in terms of payments
- 36 -

Details of two-step loans in foreign currencies are as follows :
Original
currency *)
US$
JPY
EUR
Others **)
Total
*)
**)
2007
716,241,088
25,115,171,471
126,075,083
57,100,630
2006
Rp
equivalent
Original
currency *)
6,530,686
1,948,435
1,532,354
520,644
10,532,119
681,116,392
26,478,731,635
131,364,988
58,266,417
Rp
equivalent
6,181,131
2,038,333
1,430,926
528,768
10,179,158
In full amount
Two-step loans denominated in other foreign currencies are presented as US$ equivalents using the
exchange rates prevailing at balance sheet date
26. GOVERNMENT LOANS

2007
2006
Investment Fund Account

No. RDI-393/DP3/2001
No. RDI-298/DP3/1996
Total
3,966,201
23,000
3,989,201
4,259,993
46,000
4,305,993
Less current maturities

No. RDI-393/DP3/2001
No. RDI-298/DP3/1996
Total
293,793
23,000
316,793
293,793
23,000
316,793
3,672,408
3,989,200
Long-term portion
Investment Fund Account No. RDI-393/ DP3/2001
In June 20, 2000, the Company and the Government of the Republic of Indonesia agreed to restructure
the overdue principal of two-step loans amounting to Rp 5,288,268 million as stated on the letter of the
Ministry of Finance of the Republic of Indonesia No. S-352/MK.06/2001. The new loan is unsecured,
has a period of 20 years, including 2 years grace period and bears interest at 4% per annum. The loan
will be paid in semi-annual installment of Rp 146,896 million until July 30, 2021.
The Government also approved the capitalization of overdue interest and penalty amounting to
Rp 28,781,355 million into additional Government Equity Participation. In relation to the additional
Government Equity Participation, on August 1, 2001, the Government issued Government Regulation
No. 61 Year 2001. The difference of Rp 789,452 between the Government Equity Participation and the
amount converted into the Companys paid-up capital was recorded as additional paid-in capital
(Note 20).
Investment Fund Account No. RDI-298/DP3/1996
The Company obtained from the Government of the Republic of Indonesia an investment loan facility of
Rp 230 billion, with term of 12 years including 2 years grace period. The loan was used for prepayment
of export credit in financing the development of PLTGU Muara Tawar. This loan will be paid semiannually up to March 13, 2008 in the amount of Rp 11.5 billion and bears interest at 9% per annum for
the first 6 years, and at average interest rate of 3 months Certificate of Bank Indonesia for the 6 months
until a new interest rate is determined for the succeeding years.
- 37 -

27. LEASE LIABILITY
This account represents payable to PT Central Java Power (CJP) in relation to Financial Lease
Agreement on the acquisition of Tanjung Jati B Unit A and B power plant 2 x 660 MW.
In accordance with the lease agreement, the future minimum lease payments are as follows:
2007
Minimum lease payments due :
Not later than 1 year
Later than 1 year and not later than 2 years
Later than 2 years
1,831,346
1,760,567
18,605,208
Total minimum lease payments

Less interest
22,197,121
7,880,674
Present value of minimum lease payments

Less current maturity
Long-term lease liabilities - net
14,316,447
775,084
13,541,363
On May 23, 2003, the Company and CJP entered into an agreement to continue the development of
power plant Tanjung Jati B Unit A and B. The Company and CJP also entered into a Financial Lease
Agreement (FLA) which stipulates, among others, that CJP will lease the power plant for 20 years
starting on its Commercial Operation Date (COD) or the date of maximum delay, for each unit, after
July 31, 2003, whichever is earlier and the Company has an option to purchase the power plant on or
before the end of FLA period at certain purchase price as stipulated in the Call Right Agreement. The
FLA required the Company to operate the power plant in accordance with Operation and Maintenance
Agreement (O&M Agreement). The acquisition cost of the leased assets is approximately JPY 184,545
million based on FLA. The semi-annual minimum lease payment amounting to Rp 404,408 million and
US$ 4.23 million, before any adjustments on certain factors, among others, conversion of foreign
exchange in JPY currency, interest rate and investment rate of returns in accordance with a formula
stipulated in the FLA. The semi-annual minimum lease payment, after including adjustments based on
the formula and condition factors at the date of FLA amounted to a total of JPY 11,289 million for both
Unit A and B. In relation to the delayed COD of power plant Unit A and B, on October 1 and
November 1, 2006, respectively, the term of the lease agreement was effected to become 23.5 years
until March 31, 2030.
Interest expense and financing charges for three-month period ended March 31, 2007 amounted to
Rp 489,620 million. These interest expense and financing charges include contingent rent of
Rp 233,007 million for certain adjustment factors which include, among others, conversion of foreign
exchange in JPY currency, interest rate and investment rate of returns.
In relation to the FLA, The Sumitomo Mitsui Banking Corporation, Singapore acts as the Escrow Agent
and Sumitomo Mitsui Banking Corporation, Tokyo acts as the Security Agent. To fulfill the requirements
of FLA, the Company established a reserve account to an Escrow Agent on August 22, 2005 for
guarantee of operations, maintenance and fuel procurement and on February 1, 2006 for finance lease
installment prepayment.
The Company is restricted by certain covenants of FLA, such as pledge of Escrow Accounts, transfer of
the Companys rights based on PLN Settlement Agreement, which will be returned if the payment of
lease liabilities has been made, and recognition of CJPs transfer of rights to its creditors, as guarantee
of CJPs obligations.
- 38 -

28. BANK LOANS

2007
2006
Bank loans
Bank Bukopin
Bank Bumiputera Indonesia
Total
28,116
9,100
270
37,486
4,267
4,267

Bank Bukopin
Total
4,612
9,100
270
13,982
4,267
4,267
Long-term portion
23,504
Bank Bukopin
On June 11, 2006, ICON obtained investment credit facilities amounting to 50 billion, with terms of 2 and
4 years which bear interest at 13.5% and 14.75% per annum. This facility are secured by certain
property, plant and equipment of Rp 45,745 million and time deposits of Rp 5 billion in the same bank.

ADC, a subsidiary of IP, obtained working capital facilities amounting to Rp 10 billion with interest rate
per annum at 13% in 2007, due on March 22, 2008. This loan secured by ADCs time deposits
amounting to Rp 5,000 million and trade accounts receivable.

ADC also obtained working capital facilities amounting to Rp 9.6 billion in 2007 and Rp 9.8 billion in
2006 with interest rate per annum at 13.5% in 2007 and 8.5% in 2006. This facility has been extended
several times and will mature on August 3, 2007. This loan is secured by time deposits of IP amounting
to Rp 10 billion with the same bank.
- 39 -

29. BONDS PAYABLE
Details of bonds payable are as follows:
2007
2006
Guaranteed Notes, with nominal amount of US$ 550 million,

net of unamortized debt issuance costs of US$ 8.3 million
Guaranteed Notes, with nominal amount of US$ 450 million,
net of unamortized debt issuance costs of US$ 4.9 million
PLN VIII Year 2006, with nominal amount of Rp 2,200,100 million,
net of unamortized debt issuance costs of Rp 11,914 million
Syariah Ijarah PLN I Year 2006, with nominal amount of
Rp 200,000 million, net of unamortized debt issuance costs of
Rp 1,071 million
PLN VII Year 2004, with nominal amount of Rp 1,500,000 million,
net of unamortized debt issuance costs of Rp 7,689 million
in 2007 and Rp 8,721 million in 2006
PLN VI Year 1997, with nominal amount of Rp 600,000 million
Total
Less current maturity - PLN VI Year 1997
1,492,312
600,000
13,477,074
600,000
1,491,279
600,000
2,091,279
-
Long-term portion
12,877,074
2,091,279
4,938,812
4,058,835
2,188,186
198,929
Guaranteed Notes
On October 16, 2006, Majapahit Holding B.V., The Netherlands, a wholly-owned special-purpose
subsidiary of the Company issued Guaranteed Notes amounting to US$ 1 billion, which consist of:
Principal amount of US$ 550 million with issue price of 98.976%, interest rate of 7.75% per annum
and due on October 17, 2016.
Principal amount of US$ 450 million with issue price of 99.382%, interest rate of 7.25% per annum
and due on October 17, 2011.
The interest is payable semi-annually starting from April 17, 2007 to the maturity date of the Guaranteed
Notes.
The Guaranteed Notes are guaranteed by the Company and its subsidiaries and issued based on
Indenture agreement dated October 16, 2006, among the Issuer with the Guarantors and Deutsche Bank
Trust Company Americas, as trustee.
No later than 30 days following the occurrence of both an event in which the Government of Indonesia
ceases to own, directly or indirectly, more than 50% of the voting securities of the Company or, if and
when issued, the Class A Dwiwarna Share and an event in a rating decline (Change of Control Triggering
Event), Majapahit Holding B.V. will make an offer to repurchase all Notes outstanding at a purchase
price equal to 101% of their principal amount plus accrued and unpaid interest, if any, to the date of
repurchase. The Guaranteed Notes are subject to redemption in whole, at 100% of their principal
amount, together with any accrued interest, at the option of Majapahit Holding B.V. at any time in the
event of certain changes affecting taxes changed by The Netherlands or Indonesia.
- 40 -

The Indenture is governed by certain covenants, including, among others, the incurrence of additional
indebtedness along with the Ratio Exception, that after giving effect to the permitted indebtedness, the
ratio of income before interest, tax, depreciation and amortization including actuarial employment benefit
(EBITDA) to consolidated interest expense is at least 2 : 1; the incurrence of liens; the payment of
dividends; mergers, acquisitions and disposals.
The proceeds from the Guaranteed Notes issued were used to partially fund the capital expenditure
requirements in connection with the Fast Track Program and for general corporate purposes.
The Guaranteed Notes are rated as B1 by Moodys Investors Service, Inc. and BB- by Standard and
Poors Rating Group.
PLN VIII Bonds Year 2006
On June 21, 2006, the Company issued PLN VIII Bonds Year 2006 Series A and B with a total nominal
value of Rp 2,200,100 million. The Series A bonds have nominal value of Rp 1,335,100 million, with fixed
interest rate of 13.60% per annum and a term of 10 years due on June 21, 2016. The Series B bonds
have nominal value of Rp 865,000 million with fixed interest rate of 13.75% per annum and a term of 15
years due on June 21, 2021. The interest is payable on a quarterly basis, starting from September 21,
2006 to the maturity date of the bonds.
Bank Mega acts as a Trustee of the bonds, based on the Trustee Agreement No. 59, dated April 21,
2006 of Imas Fatimah S.H., a notary in Jakarta, as amended by deed No. 13 dated June 2, 2006 of the
same notary. The Trustee Agreement stipulates, among others, that after one year from the issuance
date, the Company is allowed to buy-back a portion or the entire bonds before the maturity date and the
Company was not required to provide sinking fund for such bonds.
The proceeds from the bonds issued were used for working capital requirement which, among others,
include the purchase of fuel. The bonds are not secured by specific collateral but secured by all of the
Companys assets and the bondholders rights are paripassu without preference to the other creditors.
Syariah Ijarah PLN I Bonds Year 2006
On June 21, 2006, the Company also issued Syariah Ijarah PLN I Bonds Year 2006 with a nominal value
of Rp 200,000 million, with a term of 10 years due on June 21, 2016 and quarterly installment of Ijarah
fee.
Bank Mega acts as a Trustee of the bonds, based on the Trustee Agreement No. 62 dated April 21,
2006 of Imas Fatimah S.H., a notary in Jakarta, as amended by deed No. 16 dated June 2, 2006 of the
same notary. The Trustee Agreement stipulates, among others, that the Company has agreed to transfer
benefits obtained from certain transformers of the Company to the bondholders, and the bondholders
has agreed to provide the Company a power of attorney to enter into agreements with transformer users
for the benefits of the bondholders. The Company also received a power of attorney from the Trustee to
enter into agreements with the transformer users to collect the related receivables. After one year from
the issuance date, the Company is allowed to buy-back a portion or the entire bonds before the maturity
date. The Company was not required to provide sinking fund for such bonds.
The proceeds from the bonds issued were used for working capital requirement which, among others,
include the purchase of fuel. The bonds are not secured by specific collateral but secured by all of the
Companys assets and the bondholders rights are paripassu without preference to the other creditors.
PLN VII Bonds Year 2004
On November 11, 2004, the Company issued PLN VII Bonds Year 2004 amounting to Rp 1.5 trillion, with
fixed interest rate at 12.25% per annum and a term of 10 years due in 2014. The interest is payable
quarterly starting from February 11, 2005 until November 11, 2014 which is also the maturity date of the
bond.
- 41 -

Bank Niaga acts as a Trustee of the bonds, based on the Trustee Agreement No. 9 dated October 1,
2004 of Imas Fatimah S.H., a notary in Jakarta as amended by deed No. 55 dated October 26, 2004 of
the same notary. The Trustee Agreement stipulates, among others, that after one year from the
issuance date, the Company is allowed to buy-back either a portion or the entire bonds before the
maturity date.
The proceeds from the bonds issued were used to refinance the PLTG Muara Tawar Project. The
bonds are not secured by specific collateral but secured by all of the Companys assets and the
bondholders rights are paripassu without preference to other creditors.
PLN VI Bonds Year 1997
In 1997, the Company issued 1,400 units of PLN VI Bonds Year 1997 Series A, B and C amounting to a
total of Rp 600 billion, with fixed and floating interest rates and a term of 10 years due on August 8,
2007.
Bank Mandiri acts as a Trustee of the bonds, based on the Trustee Agreement as stated in notary deed
No. 61 dated May 19, 1997 of S.P. Henny Singgih, S.H., a notary in Jakarta, as amended by deed No. 7
dated February 3, 2000 of the same notary. The Trustee Agreement stipulates, among others, the
calculation of the interest as follows:
a.
Series A bonds bearing fixed interest rate for 10 years which is calculated based on the 10 years
Rupiah Swap from Asean Interest Rate Swap as indicated in the Reuter page EROT plus premium
of 1.4%.
b. Series B bonds bearing floating interest rate based on the average interest rate of 6 months time
deposits at Bank Negara Indonesia, Bank Tabungan Negara, Bank Mandiri, Bank Niaga, and Bank
Permata (formerly Bank Bali), which is calculated based on the average rates of the 5 working days
before the date of the bonds interest rate determination, plus fixed premium of 1%.
c.
Series C bonds bearing fixed interest rate based on the 6 months IRSOR and calculated based on
the average rate of the 5 working days before the date of the bonds interest rate determination,
plus fixed premium of 1.4%.
The interest is payable semi-annually starting from January 20, 1998.

The proceeds from the bonds issued were used to finance the transmission projects in Jakarta, West
Java, Central Java and East Java. These bonds are secured by the Companys trade accounts
receivable and landrights and buildings thereon.
Based on the Bondholders General Meeting as stated in deed No. 23 dated July 14, 2004 of Imas
Fatimah S.H., a notary in Jakarta, the Bondholders agreed, among others, on the :
Withdrawal of all collaterals which consist of landrights and buildings and part of trade accounts
receivable and to replace those collaterals with trade accounts receivable at 120% of bonds
principal.
Payment of additional interest premium at 0.25% for a one time payment of interest after the
Bondholders General meeting.
As of March 31, 2007, the Company obtained a bond rating of idA (Single A) from PT Pemeringkat Efek
Indonesia on PLN VIII Bonds Year 2006, Syariah Ijarah PLN I Bonds Year 2006 and PLN VI Bonds Year
1997, and a bond rating of A (Single A) from PT Kasnic Credit Rating Indonesia on PLN Bonds VII Year
2004.
- 42 -

In relation to the issuance of PLN VIII Bonds Year 2006, Syariah Ijarah PLN I Bonds Year 2006 and PLN
VII Bonds Year 2004, the Company is restricted by certain covenants, which require written approval
from the Trustee to: (a) use the Companys assets as collateral; (b) act as a guarantor; (c) grant loan to
other party; (d) perform merger, consolidation and acquisition that would cause the Company to be
dissolved; (e) transfer the Companys property, plant and equipment, and allow subsidiaries to grant
loan to other party or to make an investment; (f) issue new higher ranking bonds; and (g) change the
business activities and decrease the Companys authorized, subscribed and paid-up capital. The
Company is also required to maintain the following: (a) ratio of total financial liabilities to total assets not
exceeding 80%; (b) ratio of income before interest, tax and depreciation and amortization, including
actuarial employment benefit (EBITDA) to interest expense at a minimum of 2 : 1; and except for PLN
VII Bonds Year 2004, (c) ratio of power plant, transmission and distribution facilities to interest-bearing
liabilities which are not secured by specific collaterals (excluding two-step loans and government loans)
at a minimum of 150%.
30. ELECTRICITY PURCHASE PAYABLE (INDEPENDENT POWER PRODUCER)

In March 1998, the Company deferred the settlement of electricity purchase payable to the amount as
stated in Power Purchase Agreement (PPA) and Energy Sales Contract (ESC). In 1999, the Company
established a Working Group on Special Contract Renegotiation (Kelompok Kerja Renegosiasi Kontrak
Khusus) under Governments direction in order to facilitate the renegotiation of electricity price as
previously agreed in PPA and ESC. The Company has successfully renegotiated the electricity price
with all of independent power producers (Note 53).
The details of restructured trade accounts payable to independent power producers are as follows :
a. By Creditor
2007
2006
PT Paiton Energy (US$ 694,828,088 in 2007 and US$ 709,020,264

in 2006)
PT Jawa Power (US$ 57,932,459 in 2007 and US$ 58,026,935 in 2006)
Magma Nusantara Ltd. and Pertamina (US$ 25,000,000)
Total
6,335,105
528,228
227,950
7,091,283
(376,322)
6,434,430
526,594
6,961,024
(140,909)
Long-term portion
6,714,961
6,820,115
b. By Installment Payments
2007
Payment due on years
2006
2007
2008
2009 and thereafter
Total payments
Less interest
Present value of payments
Long-term portion
- 43 -
2006
630,054
536,138
12,384,068
13,550,260
(6,458,977)
400,208
533,610
533,610
12,317,497
13,784,925
(6,823,901)
7,091,283
(376,322)
6,714,961
6,961,024
(140,909)
6,820,115

31. PAYABLE TO RELATED PARTIES

2007
Yayasan Pendidikan dan Kesejahteraan - PLN
Loan
Acquisition of stock
Employees
Total
37,325
12,989
82,853
133,167
2006
16,800
11,500
13,455
49,355
91,110
Yayasan Pendidikan dan Kesejahteraan PLN (YPK)

ICON and PLNE obtained foster fund from YPK amounting to Rp 37,325 million and Rp 16,800 million
as of March 31, 2007 and 2006, respectively. This loan bears administration fee rate ranging from 12%
to 16% per annum and will be paid through fixed installment until the period between September 2008
to August 2010.
PT Mitra Energy Batam (MEB)

Payable to MEB consists of payable on purchase of switchgear.
Employee Cooperative
Payable to employee cooperative mainly represents vehicle and computer rentals and building and yard
maintenance.
Employees
Payable to employees mainly represents advance receipt from employees on house sale.
32. PROJECT COST PAYABLE

This account represents payables arising from construction of property and equipment and purchases of
materials. This account will be reclassified into two-step loans account when the Company receives the
Withdrawal Authorization (WA) or other documents with similar authority as the WA.
- 44 -

33. TRADE ACCOUNTS PAYABLE
This account represents payables arising from purchases of electricity, fuel, goods and services, as
follows :
a.
By Creditor
2007
Related parties (Note 50)
Purchases of electricity
Rupiah
US$
PT Geo Dipa Energi
Purchases of fuel, goods and services
PT Daya Citra Mulia
Koperasi Karyawan
Total of trade accounts payable to related parties
Third parties
Purchases of electricity
PT Paiton Energy
Rupiah
US$
PT Jawa Power
Rupiah
US$
Chevron Geothermal Salak Ltd. and Dayabumi
Salak Pratama Ltd.
US$
Pertamina and Magma Nusantara Ltd
US$
Others (each below 5% of subtotal)
Rupiah
US$
Subtotal
Purchases of fuel, goods and services
Pertamina
Rupiah
US$
PT Tambang Batubara Bukit Asam
Others (each below 5% of subtotal)
Rupiah
US$
EUR
JPY
Subtotal
Total of trade accounts payable to third parties
Total trade accounts payable
- 45 -
2006
64,238
96,898
1,109
21,948
7,327
14,110
18,204
9,235
6,599
8,013
14,104
4,461
15,807
213,637
68,416
303,335
592,428
239,493
601,060
266,519
490,593
277,492
509,222
132,957
134,983
72,322
2,897,516
166,210
145,079
2,169,443
47,500
150,895
4,858,161
20,428,329
215,363
617,949
16,602,208
601,625
173,263
2,242,997
159,990
40,215
6,575
23,711,418
2,403,807
136,575
16,326
6,525
19,940,329
25,880,861
24,798,490
26,094,498
24,866,906

b.
By Age Category
1 - 180 days
181 - 360 days
More than 360 days
Total
2007
2006
25,888,292
87,245
118,961
26,094,498
21,780,863
519,275
2,566,768
24,866,906
Details of trade accounts payable in foreign currencies are as follows :

2007
Original
currency *)
US$
EUR
JPY
Total
*)
209,117,964
3,308,701
84,764,499
2006
Rp
equivalent
1,906,738
40,215
6,575
1,953,528
Original
currency *)
558,011,118
1,498,202
84,764,499
Rp
equivalent
5,063,951
16,326
6,525
5,086,802
In full amount
As of March 31, 2006, payable to PT Pertamina and Magma Nusantara Limited (Joint Operation) for the
Wayang Windu project is based on the tariff stated in the Energy Sales Contract and certain Interim
Tariff Payments agreed by the Company and the Joint Operation since May 16, 2000. On November 21,
2006, the Company and the Joint Operation agreed to finalize a binding amendment on the Wayang
Windu Geothermal Energy Sales Contract.
34. OTHER PAYABLES

2007
2006
Difference on fuel purchasing price in excess of quota

Public street lights
Advance sales of electricity
Acquisition of property, plant and equipment
Rupiah
US$ - US$ 10,391,572 in 2007 and US$ 13,861,149 in 2006
Others
Total
Less long-term portion
Difference on fuel purchasing price in excess of quota
Acquisition of property, plant and equipment
Total
408,739
319,226
499,118
635,817
301,704
350,365
156,836
94,750
445,964
1,924,633
164,775
125,790
300,553
1,879,004
272,493
165,904
438,397
454,155
253,702
707,857
Current maturities
1,486,236
1,171,147
Payable due to difference on fuel purchasing price in excess of quota represents 25% of the market
price for purchasing fuel above quota as determined by Pertamina in 2002 amounting to Rp 726,648
million. Based on the decision of the General Meeting of Shareholders in 2005, the Company was
required to settle such payable. Accordingly, the price differences were charged to the 2005 operations
(Note 46). This payable will be paid in 16 quarterly installments of Rp 45,415 million each from
September 2005 until June 2009.
- 46 -

35. TAXES PAYABLE

Current tax (Note 47)
2007
2006
2005
2004
Income taxes
Article 21
Article 22
Article 23
Article 15, 25 and 26
Article 29 for the year 2005, 2001 and 1998
Value added tax
Stamp duty
Land and building taxes
Tax on revaluation increment on property, plant and equipment current maturities
Total
2007
2006
241,082
817,717
203
186,781
462,172
27,088
25,090
5,176
25,121
5,279
1,282
32,228
5,489
2,157
13,680
4,016
53,993
2,584
37,029
5,026
3,391
34,893
1,195,717
2,342,248
3,138,008
The tax payable on revaluation increment on property, plant and equipment as of March 31, 2006
consists as follows:
The Company Subsidiaries
Total
Beginning balance
Less cash payments
Ending balance
Long-term portion
688,959
688,959
(688,959)
-
1,953,289
(300,000)
1,653,289
(1,653,289)
-
2,642,248
(300,000)
2,342,248
(2,342,248)
-
The Company and its subsidiaries are obliged to pay interest on the final income tax payable in respect
of the revaluation increment. Interest on final income tax payable amounted to Rp 1,863,754 million in
2006, which was due on December 15, 2006. Interest on the final income tax payable amounted to
Rp 465,939 million for the three-month periods ended March 31, 2006, were presented as accrued
expenses, while the corresponding interest expense were presented as interest expense and financing
charges (Note 45).
Based on the Fund Withdrawal Instruction Letter issued by the Directorate General of Treasury
No. 003813Z/999/100 dated December 28, 2006, the interest on tax payable which was due on
December 15, 2006 amounting to Rp 1,863,754 million was assumed by the Government. Accordingly,
such interest assumed by the Government was recognized as other income.
36. ACCRUED EXPENSES
2007
2006
Interest and financing charges

Lease liability
Tax payable on revaluation increment on property, plant and equipment
Contingent rent on lease liability
Two-step loans
Government loans
Bonds payable
Total
Operational expenses
465,665
425,432
361,277
4,695
390,875
41,742
1,689,686
112,510
465,939
247,911
23,156
33,340
2,110
772,456
75,128
Total
1,802,196
847,584
- 47 -

Details of accrued expenses in foreign currencies are as follows :
2007
Original
currency *)
US$
JPY
EUR
Others **)
Total
*)
**)
65,215,298
11,489,939,034
1,214,306
723,161
2006
Rp
equivalent
594,633
891,355
14,759
6,594
1,507,341
Original
currency *)
5,536,497
1,324,360,458
2,166,148
1,180,578
Rp
equivalent
50,244
101,947
23,595
10,714
186,500
In full amount
Accrued expenses denominated in other foreign currencies are presented as US$ equivalents using the
exchange rates prevailing at balance sheet date.
37. REVENUE FROM SALE OF ELECTRICITY
Sale of electricity by customers are as follows :
Public
Government
State-owned enterprises
Indonesian Armed Forces
Total
2007
2006
16,713,947
715,938
585,799
105,167
18,120,851
15,551,759
673,229
507,716
105,355
16,838,059
Revenue from sale of electricity is based on basic electricity tariffs determined by the Government.
The Company has no customer from which the Company obtains revenue of more than 10% of total
sale of electricity.
38. GOVERNMENTS ELECTRICITY SUBSIDY
The Government of Indonesia has provided electricity subsidy to customers through the Company. The
guidance for calculation and payment of electricity subsidy is set in the Rule of Minister of Finance of the
Republic of Indonesia No. 126/PMK.02/2006 dated December 15, 2006 for budget year 2006. The
electricity subsidy is computed as the negative difference between the average sales prices (Rp/kwh) of
each tariff category less the cost of electricity supplies on the voltage for each tariff category multiplied
by the electricity sales volume (kwh) of each tariff category. The cost of electricity supplies is computed
based on the formula, including the rate of transmission and distribution losses which is determined by
the Directorate General of Electricity and Energy Consumption under the Ministry of Energy and Mineral
Resources. The Rule is also effective for the budget year 2007 until such Rule is changed.
- 48 -

On February 20, 2007, the Government determined the 2007 electricity subsidy amounting to Rp 21.6
trillion, which is allocated to the 2007 budget year in accordance with the Approval Letter of Budget
Performance List (DIPA) for the budget year 2007.
Based on the Approval Letter of Budget Performance List (DIPA) for the budget year 2006, the
electricity subsidy plafond was determined amounting to Rp 31.24 trillion. Furthermore, on February 20,
2007, the Government has also increased the 2006 electricity subsidy plafond to Rp 35.5 trillion. The
increase amounting to Rp 4.26 trillion was allocated to the 2007 budget year.
The Company computed the electricity subsidy in accordance with the above formula resulting to the
electricity subsidy amounts of Rp 6,775,461 million in 2007 and Rp 5,146,212 million in 2006. The final
amount of electricity subsidy in a budget year is based on the result of the compliance audit of the usage
of the electricity subsidy performed by an auditor assigned by the Directorate General of Budged under
the Ministry of Finance. The final amount of the electricity subsidy could be different from the amount of
electricity subsidy which had been recognized as revenue by the Company.
39. OTHER REVENUES
Transformer rental
Upgrading of electricity power and administration fees
Services and others
Total
2007
2006
13,270
21,385
141,556
176,211
22,393
12,269
91,614
126,276
2007
2006
9,036,076
1,743,806
18,550
11,021
10,809,453
8,514,281
1,802,690
13,776
5,203
10,335,950
848,168
1,603,774
386,426
49,473
17,302
2,905,143
948,613
1,195,882
331,213
45,322
19,450
2,540,480
13,714,596
12,876,430
40. FUEL AND LUBRICANTS
Fuel
Solar High Speed Diesel
Residue
Solar Industrial Diesel
Others
Total
Non fuel
Natural gas
Coal
Geothermal
Lubricants
Water
Total
Total
All fuel, which represents more than 10% of the total fuel and lubricants expense, are purchased from
Pertamina.
- 49 -

41. ELECTRICITY PURCHASES
2007
PT Paiton Energy
PT Jawa Power
Chevron Geothermal Salak Ltd. and Dayabumi
Salak Pratama Ltd.
PT Asrigita Prasarana
PT Energy Sengkang
Pertamina and Magma Nusantara Ltd.
Pertamina, Chevron Drajat Ltd., Texaco Drajat Ltd.
and PT Drajat Geothermal Ind.
PT Makassar Power
PT Cikarang Listrindo
PT Indo Matra Power
PT Geo Dipa Energy
PO Jatiluhur
PT Metaepsi Pejebe Power Generation
Others - diesel rental
Total
2006
1,338,523
1,186,484
425,053
1,292,080
1,212,295
14,107
207,519
115,609
112,631
102,353
201,170
129,332
122,361
199,664
96,852
85,386
51,855
49,833
19,536
17,780
12,547
10,604
8,969
247,093
4,088,627
88,827
70,802
57,640
18,381
18,179
18,542
28,520
219,280
3,691,180
The details of suppliers which represent more than 10% of the total purchases of electricity are as
follows :
2007
2006
% *)
PT Paiton Energy
PT Jawa Power
Total
1,338,523
1,186,484
425,053
2,950,060
% *)
32.74
29.02
10.40
72.16
1,292,080
1,212,295
14,107
2,518,482
35.11
32.85
0.38
68.34
42. MAINTENANCE EXPENSES
This account represents spare parts used and contractor fees for maintenance purposes.
2007
Spare parts used
Contractor fees
Total
644,770
477,330
1,122,100
2006
592,185
390,203
982,388
43. PERSONNEL EXPENSES

2007
Employee benefits (Note 49)
Salaries
Allowances
Bonus, performance and incentives
Others
Total
637,127
362,069
358,929
24,092
203,272
1,585,489
- 50 -
2006
556,384
269,001
290,201
9,049
230,455
1,355,090

44. OTHER OPERATING EXPENSES
Data processing
Honorarium
Travel
Technological information
Billing collection and orderliness of of electricity used
Postage, telephone and telegraph
Consumables
Rent
Gas, electricity and water
Stationeries
Insurance
Marketing
Dues and security
Printing materials and promotion
Vehicles
Provision for doubtful accounts
Others
Total
2007
2006
132,346
101,393
91,984
56,867
51,896
47,161
44,945
42,106
40,445
34,575
32,786
23,327
22,446
20,157
14,627
6,959
97,150
861,170
113,318
67,754
86,094
26,842
60,726
15,406
38,880
50,802
38,566
25,076
36,331
9,764
10,532
13,109
22,095
32,550
67,683
715,528
2007
2006
489,620
344,562
201,501
101,939
40,310
1,884
56,572
196,137
61,236
41,610
678
1,434
1,181,250
465,939
1,094
823,266
45. INTEREST EXPENSE AND FINANCING CHARGES
Lease liability
Bonds payable
Two-step loans
Government loans
Bank loans
Tax payable on revaluation increment on property, plant
and equipment
Others
Total
46. OTHER INCOME (EXPENSES) - NET

Administrative penalty income
Claim and service income
Fees for street lights
Gain on sale of property, plant and equipment
Equity in net gain (loss) of associates (Note 6)
Research
Loss on impairment of property, plant and equipment (Note 7)
Others
Total
- 51 -
2007
2006
84,229
15,615
11,084
760
5,774
(451)
(119,286)
(33,179)
(35,454)
69,006
21,633
9,080
695
(5,509)
(392)
(102,366)
(34,919)
(42,772)

47. INCOME TAX
Tax expense of the Company and its subsidiaries consist of the following :
Current tax
Deferred tax
Total tax expense
2007
2006
264,646
150,670
415,316
191,824
477,557
669,381
Current Tax
A reconciliation between income (loss) before tax per consolidated statements of income and
accumulated tax losses is as follows:
2007
2006
Income (loss) before tax per consolidated
statements of income
Income before tax attributable to subsidiaries
Income (loss) before tax - the Company
Temporary differences :
Lease expenses
Depreciation
Employee benefits
Provision for doubtful accounts and decline in value
of inventories
Amortization of bonds issuance costs
Nondeductible expenses (nontaxable income):
Benefits in kind
Depreciation of guest house
Interest income subjected to final tax
Other nondeductible expenses
Tax loss before tax loss carryforward
Tax losses for the year
2006
2005 - net of adjustment
2003
Accumulated tax losses - the Company
- 52 -
(435,808)
(1,144,600)
1,721,307
(1,299,566)
(1,580,408)
421,741
431,483
102,569
(1,048,798)
365,436
104,402
(990,715)
322,579
4,685
(1,301)
30,833
-
102,422
2,313
(96,990)
71,571
(1,647,018)
55,238
2,269
(31,388)
53,611
(31,430)
(7,233,904)
(5,291,969)
(3,594,188)
(5,960,838)
(10,409,554)
(7,618,742)
(3,594,188)
(8,254,356)
(23,727,917)
(29,908,270)

Current tax expense and payable (prepaid tax) are as follows :

Current tax expense
The Company
Subsidiaries
Total
Less prepaid taxes
The Company
Income tax
Article 22
Article 23
Fiscal exit
Total
Subsidiaries
Total
2007
2006
264,646
264,646
191,824
191,824
377
24,842
25,219
55
41
68
164
12,218
12,382
Current tax expense net of prepaid taxes
239,427
179,442
Details
Current tax payable
The Company
Subsidiaries
Total current tax payable
241,082
241,082
186,781
186,781
(377)
(1,278)
(1,655)
(164)
(7,175)
(7,339)
239,427
179,442
2007
2006
422,527
(102,792)
(129,445)
(31,554)
3,913
(11,979)
150,670
550,910
(106,389)
(33,345)
70,232
(3,851)
477,557
377
-
Income tax overpayment

The Company
Subsidiaries
Total income tax overpayment
Total - Net
Deferred Tax
The deferred tax charged (credited) to income during the period is as follows:
Depreciation of property, plant and equipment

Employee benefits
Leases
Tax losses
Others
Total
- 53 -

Deferred tax balances are presented in the balance sheets as follows :
Deferred Tax Assets
This account represents deferred tax assets after deducting the deferred tax liabilities from the related
entity as follows:
2007
2006
Deferred tax assets

Deferred income
Tax losses
Employee benefits obligation
Others
Total
44,413
75,660
1,771
7,908
129,752
38,159
25,672
1,124
7,300
72,255

Property, plant and equipment
(71,813)
(63,820)
57,939
8,435
Deferred tax assets
Deferred Tax Liabilities

This account represents deferred tax liabilities after deducting the deferred tax assets from the related
entities as follows:
2007
2006
Deferred tax assets

Employee benefits obligation
Tax losses
Deferred income
Leases
Others
Total
3,961,635
1,860,999
24,989
4,657
5,852,280
3,651,077
77,981
1,750,750
4,547
5,484,355

Prepaid pension
Property, plant and equipment
Others
Total
(53,303)
(13,370,155)
(793)
(13,424,251)
(72,771)
(11,259,189)
(11,331,960)
(7,571,971)
(5,847,605)
- 54 -

A reconciliation between the total tax expense and the amounts computed by applying the prevailing tax
rates to income (loss) before tax is as follows:
2007
2006
Income (loss) before tax per consolidated
statements of income
Income before tax attributable to subsidiaries
Income (loss) before tax - the Company
Tax expense at prevailing rate
Tax effect of
Unrecognized deferred tax on
Tax losses
Provision for doubtful accounts and decline in value
of inventories
Recognition of prior year's deferred tax liabilities
Nondeductible expenses (nontaxable income)
Benefits in kind
Depreciation of guest house
Interest income subjected to final tax
Other nondeductible expenses
Tax expense - the Company
Tax expense - subsidiaries
Total
(435,808)
(1,144,600)
(1,580,408)
1,721,307
(1,299,566)
421,741
(474,123)
126,522
494,106
9,429
1,405
-
9,250
111,701
30,727
694
(29,097)
21,471
45,183
370,133
16,571
681
(9,416)
16,083
280,821
388,560
415,316
669,381
2007
2006
Unrecognized deferred tax asset is as follows:

The Company
Tax losses
Others
Total
7,118,375
94,387
7,212,762
Subsidiaries - tax losses
Total
7,212,762
8,972,481
103,430
9,075,911
81,224
9,157,135
The Company does not have a sufficient basis to determine the future tax benefit on the deferred tax
asset. The deferred tax asset will be recognized in the consolidated financial statements when the
taxable income becomes available in future periods.
Tax Assessment Letter
On May 22, 2007, the Company received a tax assessment letter for underpayment (SKPKB) of income
tax article 4 section 2, article 21, article 23 and value added tax for the year 2005 amounting to a total of
Rp 6,764 million. The Company also received a tax assessment letter for the overpayment of corporate
income tax (SKPLB) amounting to Rp 1,751 million and for the tax loss of Rp 5,291,969 million for the
year 2005.
- 55 -

In 2006, the Company received a tax assessment letter for underpayment (SKPKB) of income tax article
21, article 23 and value added tax for the year 2004 amounting to a total of Rp 4,662 million. The
Company paid this SKPKB on September 12, 2006. The Company also received a tax assessment
letter for the overpayment of corporate income tax (SKPLB) amounting to Rp 821 million and for the
taxable income of Rp 2,293,518 million for the year 2004. Such taxable income was offset against the
2002 tax loss carryforward.
In 2006, IP received SKPKB and Tax Collection Notice (STP), for corporate income tax, final income tax
article 4 section 2, article 21, article 23 and value added tax for year 2004, amounting to a total of
Rp 1,139,246 million. IP filed objection letters on these SKPKB and STP to the Director General of Tax.
In 2005, IP received SKPKB and STP for underpayment of value added tax, final income tax article 4
section 2, article 21, article 23 and 26 for the years 2002 and 2001, amounting to a total of Rp 313,953
million. IP filed objection letters on these SKPKB and STP. In 2006, the Director General of Tax denied
these objection letters. IP filed an appeal for an amount of Rp 124,963 million.
Since IP has filed objection letters and tax appeal, the payment made by IP on SKPKB and STP
amounting to a total of Rp 127,594 million and Rp 212,193 million as of March 31, 2007 and 2006,
respectively, were presented as prepaid taxes and no tax liabilities have been recognized.
48. EARNINGS (LOSS) PER SHARE
Earnings (Loss)
Net earnings (loss) for the computation of basic earnings (loss) per share amounted to (Rp 18,460) in
2007 and Rp 22,815 in 2006.
Number of shares
The weighted average number of shares for the computation of basic earnings (loss) per share was
46,107,154 shares in 2007 and 2006.
The Company did not calculate dilutive earnings (loss) per share because it has no potential dilutive
ordinary shares.
49. EMPLOYEE BENEFITS

Post-employment Benefits
Pension Plan
The Company and its subsidiaries established a defined benefit pension plan covering all their
permanent employees. This plan provides pension benefits based on salaries and years of service of
the employees. The pension plan is managed by Dana Pensiun PLN (Persero) (DP-PLN), which deed of
establishment was approved by the Ministry of Finance of the Republic of Indonesia in its decision letter
No. KEP-284/KM.17/1997 dated May 15, 1997.
DP-PLN obtained an approval from the Minister of Finance of the Republic of Indonesia No. KEP078/KM.12/2006 dated on August 29, 2006 in relation to the increase in pension benefits provided by
the Company and its subsidiaries pension plan.
DP-PLN is mainly funded by contributions from both the employees, which is 6% in both 2007 and 2006
and the employer, which is 6.25% - 8.91% in 2007 and 2006.
- 56 -

Other Post-employment Benefits
The Company and its subsidiaries also provide other unfunded defined post-employment benefit plans
such as severance pay, service pay, compensation pay, additional allowance and functional retirement
pay for their qualifying employees based on the Company and its subsidiaries policies. These other
post-employment benefits are computed based on the salaries and service years of the employees.
Health Care Benefits
In addition to the pension plan managed by DP-PLN and the other post-employment benefits, the
Company and its subsidiaries also provide unfunded defined health care plans for their pensioners and
their eligible dependents.
Other Long-term Benefits
The Company and its subsidiaries also provide unfunded defined other long-term benefit plans such as
long service leave, work accident, death and funeral allowances, and eight years service award for their
qualifying employees.
The cost of providing post-employment and other long-term benefits were calculated by an independent
actuary, PT Binaputera Jaga Hikmah. The actuarial valuation was carried out using the following key
assumptions:
Normal retirement age
Expected rate return on plan assets
Discount rate per annum
Rate of salary increase per annum
Pension plan
Other post-employment and long-term benefits
Rate of health cost increase
: 56 years
: 11%
: 11%
: 5%
: 8%
: 15% in 2007 and 18% in 2006, decreasing
linearly by 3% each succeeding year until 2009
The Company and its subsidiaries employee benefit expenses charged to personnel expenses, are as
follows :
2007
Post-employment benefit
Other
Pension
Other postHealth
long-term
plan
employment care benefits
benefits
Total
Current service cost
Past service cost
Expected return on plan assets
Interest costs
Actuarial losses (gains)
Deferred asset due to asset limitation
Total
15,355
5,894
(98,018)
79,232
(8,737)
68,029
61,755
- 57 -
68,918
6,436
172,635
846
248,835
41,118
149,568
4
190,690
40,829
18,645
76,373
135,847
166,220
12,330
(98,018)
420,080
68,486
68,029
637,127

2006
Post-employment benefit
Pension
Other postHealth
plan
employment care benefits
Current service cost
Past service cost
Expected return on plan assets
Interest costs
Actuarial losses
Deferred asset due to asset limitation
Total
16,697
6,914
(88,396)
97,102
1,159
5,660
39,136
61,297
6,436
151,386
287
219,406
41,332
170,691
7,428
219,451
Other
long-term
benefits
37,666
17,819
22,906
78,391
Total
156,992
13,350
(88,396)
436,998
31,780
5,660
556,384
The Company and its subsidiaries employee benefit obligations (prepaid pension) are as follows:
2007
Prepaid employee
benefit,
Other postHealth
Other
pension plan
employee care benefits long-term
Present value of obligation
Unrecognized past service cost
Unrecognized actuarial gains
(losses)
Fair value of plan assets
Deferred asset due to asset
limitation
(prepaid pension)
2,991,366
(193,312)
7,273,370
(269,315)
6,358,950
-
586,101
(3,670,804)
(626,217)
-
(296,305)
-
108,972
(177,677)
6,377,838
6,062,645
770,472
-
3,200,388
(235,396)
5,879,706
(295,058)
6,246,240
-
98,635
(3,311,857)
482,290
-
(815,707)
-
5,660
(242,570)
- 58 -
6,066,938
5,430,533
14,402,792
(269,315)
(922,522)
-
770,472
2006
Prepaid employee
benefit,
Other postHealth
Other
pension plan
Present value of obligation
Unrecognized past service cost
Unrecognized actuarial gains
(losses)
Fair value of plan assets
Deferred asset due to asset
limitation
(prepaid pension)
Total
13,210,955
Total
676,791
-
12,802,737
(295,058)
(257)
(333,674)
-
676,534
12,174,005

Movements in the Company and its subsidiaries employee benefit obligation (prepaid pension) are as
follows:
2007
Prepaid employee
benefit,
Other postHealth
Other
pension plan
Total
Beginning balance
Expense for the period
Payments of contribution
Payments benefits
(217,406)
61,755
(22,026)
-
6,298,361
248,835
(169,358)
5,892,439
190,690
(20,484)
677,911
135,847
(43,286)
12,868,711
575,372
(233,128)
Ending balance
Current maturities
Long-term portion
(177,677)
169,132
(8,545)
6,377,838
(868,202)
5,509,636
6,062,645
(129,322)
5,933,323
770,472
(260,995)
509,477
13,210,955
(1,258,519)
11,952,436
2006
Prepaid employee
benefit,
Other postHealth
Other
pension plan
Total
Beginning balance
Expense for the period
Payments of contribution
Payments benefits
(253,439)
39,136
(28,267)
-
5,918,719
219,406
(71,187)
5,250,897
219,451
(39,815)
648,098
78,391
(49,955)
11,817,714
517,248
(160,957)
Ending balance
Current maturities
Long-term portion
(242,570)
230,504
(12,066)
6,066,938
(482,652)
5,584,286
5,430,533
(322,324)
5,108,209
676,534
(340,040)
336,494
12,174,005
(1,145,016)
11,028,989
50. TRANSACTIONS WITH RELATED PARTIES

The Company and its subsidiaries do not need to disclose the transactions with State-owned/Regionalowned enterprises as transactions with related parties in accordance with Statement of Financial
Accounting Standards (SFAS) No. 7 Related Party Disclosure.
In the normal course of business, the Company and its subsidiaries entered into transactions with
related parties. All significant transactions with related parties, whether or not done at normal prices and
conditions as those done with third parties, are disclosed in the consolidated financial statements.
Summary of the nature and transactions with related parties according to SFAS No. 7 include the
following :
- 59 -

Transactions with Related Parties

Notes
2007
2006
% *)
Receivables from related parties

PT TJK Power
Directors and employees
Subtotal

PT Geo Dipa Energi
PT Daya Citra Mulia
Koperasi Karyawan
Subtotal
33
Payable to related parties

Yayasan Pendidikan dan
Kesejahteraan - PLN
Acquisition of stock
PT Mitra Energi Batam
Employees
Subtotal
Total
31
Electricity purchases
PT Geo Dipa Energi
Total
41
Coal purchases
PT Daya Citra Mulia
40
Building rent
Yayasan Pendidikan dan
Kesejahteraan - PLN
44
*) Percentage to the related total assets/liabilities/expenses
- 60 -
% *)
522,533
10,561
11,571
18,614
14,870
5,035
2,857
644,362
1,230,403
0.20%
0.00%
0.00%
0.01%
0.01%
0.00%
0.00%
0.25%
0.47%
484,241
5,035
561,271
1,050,547
0.22%
0.07%
0.10%
0.39%
161,136
1,109
21,948
7,327
8,013
14,104
213,637
0.16%
0.00%
0.02%
0.01%
0.01%
0.01%
0.21%
14,110
18,204
9,235
6,599
4,461
15,807
68,416
0.02%
0.02%
0.01%
0.01%
0.01%
0.01%
0.06%
37,325
12,989
82,853
133,167
346,804
0.04%
0.02%
0.09%
0.15%
0.36%
16,800
11,500
13,455
49,355
91,110
159,526
0.02%
0.01%
0.02%
0.06%
0.11%
0.17%
425,053
49,833
12,547
19,536
506,969
10.40%
1.22%
0.31%
0.48%
12.41%
14,107
18,381
18,542
18,179
69,209
0.38%
0.50%
0.50%
0.49%
1.87%
39,603
0.29%
30,728
0.24%
6,733
0.78%
8,506
1.19%

Nature of related parties

a. The Company and its subsidiaries have associates as identified in Note 6.
b. Management of Employee Cooperative is composed of the Company and its subsidiaries
employees.
c.
The founders and controllers of Yayasan Pendidikan dan Kesejahteraan PT PLN (Persero) (YPK)
are composed of management and employees of the Company and its subsidiaries.
d. Officers are people who have authority and responsibility for planning, directing and controlling the
activities of the Company.
51. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

At March 31, 2007, the Company and its subsidiaries have monetary assets and liabilities denominated
in foreign currencies, as follows:
2007
JPY *)
USD *)
EUR *)
Others **)
Monetary assets
Related party receivables
Restricted cash in bank and time deposits
Cash and cash equivalent
Short-term investment
42,324,888,953
46,430,048
-
59,735,304
137,416,321
990,066,969
5,200,000
2,035,371
-
393,216
-
Total monetary assets
42,371,319,001
1,192,418,594
2,035,371
393,216
Monetary liabilities
Two-step loans
Lease liability
Bonds payable
Other payables
Project cost payable
Accrued expenses
25,115,141,584
184,545,000,000
1,964,262,100
84,764,499
11,489,939,034
716,241,088
986,800,504
777,760,547
10,391,572
38,525,318
209,117,964
65,215,298
125,764,864
16,663,778
3,308,701
1,214,306
57,395,411
1,075,598
723,161
Total monetary liabilities
223,199,107,217
2,804,052,291
146,951,649
59,194,170
Net monetary liabilities
(180,827,788,216)
(1,611,633,697)
(144,916,278)
(58,800,954)
Rupiah equivalent (in millions)
(14,028,620)
(14,694,876)
(1,761,356)
(536,147)
Total in Rupiah - net (in millions)
(31,020,999)
*)
**)
In full amount
Assets and liabilities denominated in other foreign currencies are presented as US$ equivalent using the
exchange rate prevailing at balance sheet date
- 61 -

On the balance sheets date, the conversion rates used by the Company and its subsidiaries are as
follows:
2007
2006
Rp *)
Rp *)
Currencies
USD
9,118
9,075
Yen
78
77
EUR
12,154
10,893
*) In full amount
In relation to the fluctuation of Rupiah against foreign currencies, the Company and its subsidiaries
recorded net loss on foreign exchange of Rp 570,108 million in 2007 and gain on foreign exchange of
Rp 2,367,039 million in 2006.
52. SEGMENT INFORMATION

Geographical Segments
For management purposes, the Company and its subsidiaries are currently organized into Java and
outside Java geographical operations. These geographical operations are the basis on which the
Company and its subsidiaries report their primary segment information, as follows :
Java
Revenue
External revenue
Inter-segment revenue
Total
Segment results
Unallocated operating expenses
Income from operations
2007
Outside Java
Elimination
21,325,287
21,325,287
3,878,355
3,878,355
25,203,642
25,203,642
12,209,372
(3,283,043)
11,860,637
20,786,966
(19,611,675)
1,175,291
Unallocated other charges

Tax expense
Net loss
Segment Assets
Unallocated assets
Total consolidated assets
Segment Liabilities
Unallocated liabilities
Total consolidated liabilities
Total
(1,611,099)
(415,316)
(851,124)
170,492,723
70,498,214
(121,953,090)
119,037,847
137,124,382
256,162,229
92,317,356
84,357,343
(171,575,258)
5,099,441
111,925,448
117,024,889
- 62 -

Java
Revenue
External revenue
Inter-segment revenue
Total
Segment results
Unallocated operating expenses
Income from operations
2006
Outside Java
Elimination
18,693,165
18,693,165
3,539,831
3,539,831
22,232,996
22,232,996
8,290,874
(3,146,412)
12,079,222
17,223,684
(17,115,959)
107,725
Unallocated other charges

Tax expense
Net income
Segment Assets
Unallocated assets
Total consolidated assets
Segment Liabilities
Unallocated liabilities
Total consolidated liabilities
Total
1,721,307
(669,381)
1,159,651
172,295,864
59,482,005
(114,934,181)
116,843,688
111,429,555
228,273,243
93,996,055
66,587,543
(157,457,356)
3,126,242
84,132,890
87,259,132
Business Segments
The Company and its subsidiaries operations are mainly to provide electricity power supply. The
Company and its subsidiaries operations which are not engaged in electricity represent 0.56% and
0.42% of total revenues in 2007 and 2006, respectively. Revenues based on business segments are as
follows :
2007
2006
Electricity power supply

Revenue from sale of electricity by tariff category
Industry
Residentials
Business
Public
Subtotal
Government subsidy
Upgrading of electricity power and administration fees,
and transformer rental
Subtotal
Others
Total
- 63 -
6,777,314
6,691,883
3,508,833
1,142,821
18,120,851
6,775,461
131,119
6,610,599
5,905,742
3,259,186
1,062,532
16,838,059
5,146,212
122,449
34,655
25,062,086
34,662
22,141,382
141,556
25,203,642
91,614
22,232,996

53. COMMITMENTS AND CONTINGENCIES

As of March 31, 2007, the Company and its subsidiaries have significant commitments and
contingencies, as follows:
a. The Company and its subsidiaries entered into fuel supply agreements, as follows:
i. Gas
Sector
Agreement
number
Duration
0059-4.PJ/061/DIRUT/2003
2003-2008
TBtu
31,035
1307-1.PJ/040/DIR/2005
2006-2016
TBtu
79,026
TBtu
TBtu
TBtu
TBtu
TBtu
BSCF
TBtu
TBtu
TBtu
9,651
56,182
67,048
13,075
25,280
151,900
71,852
149,036
368,700
Suppliers
Unit of
Agreed
measure quantity ***)
Tanjung Batu
Samarinda
Tanjung Batu
Samarinda
Gunung Belah Tarakan
ST Indralaya
Borang - Palembang
Pertamina - Medco
(TAC)
Pertamina - Semco
(TAC)
Medco
Medco
Medco
0073-1.PJ/061/DIR/2002
0073-2.PJ/061/DIR/2002
00145.PJ/060/DIR/2003
Kaji - Palembang
Belawan
Kramasan - Palembang
Teluk Lembu
Gresik
Gresik
Medco
Pertamina
Medco
Kalila (Bentu)
EMP Kangean
Pertamina - Kodeco
(TAC)
EMP Kangean
Pertamina
0068.PJ/DIR/060/2003
1331-3.3PJ/040/2005
0005-1.PJ/041/DIR/2006
1257.PJ/040/DIR/2005
1331-1.PJ/040/DIR/2005
2002-2012
2002-2012
2004-2013
2006-2013
2003-2011
2002-2011
2007-2013
2006-2020
2008-2024
0059-2.PJ/06/DIR/2003
008.PJ-PJB-EMP/VI/2005
43.A.PJ/061/IP/2004
2002-2013
2005-2007
2003-2008
BBTU
BBTU
BSCF
311
12.99
7,875
*)
**)
652/BP00000/2003-50
2004-2017
2006-2018
BSCF
TBtu
1,360.48
356,300
Gresik
Sunyaragi
Muara Karang
and Tanjung Priok
Cilegon - Jawa Barat
*)
BP West Java Ltd, Itochu Oil Exploration Co. Ltd, MC Oil & Gas Java BY, Inpex Jawa Ltd, CNOOC
ONWJ Ltd and Paladin Resources (Sunda) Ltd.
**)
CNOOC SES Ltd, Inpex Sumatra Ltd, KNOC Sumatra Ltd, MC Oil & Gas Sumatra BV,
Paladin Resources (Sunda) Ltd, Paladin UK (Southeast Sumatra) Ltd, Paladin Resources
(Bahamas) Ltd.
***)
In full amount
Gas purchase price at point of delivery ranges from US$ 1.15 to US$ 2.65 per MMBTu.
Payments of gas purchases are secured by stand-by letters of credit (SBLC). The Company has
SBLC facility with maximum amount of US$ 39.9 million on every SBLC issuance from Bank
Negara Indonesia. SBLC facility has a term of 13 years, due on December 31, 2016.
ii. Coal
Contract
number
Suppliers
PT Adaro Indonesia
PT Berau Coal
PT Kideco Jaya Agung
PT Tambang Batubara Bukit Asam
PT Jorong Barutama Graston
PT Daya Citra Mulia
Others
*)
055.PJ/061//1999
325.PJ/061/UBPSLA/2006
346.PJ/061/UBPSLA/2006
161.P/061/IP/2002
163-1.PJ/061/DIR/2004
050.PJNP/9212/1997/M
045.PJ/061/2004
Various
In full amount
- 64 -
Quantity in
metric ton *)
Duration
1,000,000
2,000,000
1,500,000
61,000,000
960,000
300,000
3,300,000
664,000
2006-2011
2006-2007
2006-2007
2003-2012
2004-2013
2004-2009
2006-2010
2006-2007

The stockpile price of coal purchases ranges from Rp 324,500 to Rp 351,700 per metric ton,
which is adjusted against calorific value, ash content, sulphur, water, SFT and HGI. The stockpile
of coal purchase price is still under negotiation.
iii. Fuel
The Company and Pertamina entered into a Fuel Buy and Sell Agreement
No. 071.PJ/060/DIR/2001 dated October 8, 2001 which was valid until October 8, 2004.
Pertamina agreed to sell and distribute solar oil, diesel oil and flame oil (fuel) based on the
Companys needs for operation of its power plants at the price determined by the Government.
On July 20, 2005, the Company and Pertamina changed the terms of such agreement which is
valid until December 31, 2005 or until a new Fuel Buy and Sell Agreement is signed, whichever is
earlier. Pertamina in its letter dated January 9, 2006, agreed to continue supplying fuel in
accordance with the needs of the Company and its subsidiaries at the commercial fuel price.
Based on the mutual agreement dated April 13, 2007, the Company and Pertamina agreed to use
the fuel price based on the agreement dated July 20, 2005 for the period of January 1 to April 30,
2007 and the fuel price of 109.5% of Mid Oil Platts Singapore (MOPS) plus value added tax for
the period of May 1 to December 31, 2007. This agreement is valid until a new Fuel Buy and Sell
Agreement is signed or not later than December 31, 2011 (Note 53).
iv. Geothermal Heat
The Company has a geothermal heat procurement agreement with Pertamina for Kamojang for
30 years until 2012, while the agreements for Gunung Salak and Darajat are for 30 years until
2030.
b. The Company entered into Power Purchase Agreement (PPA) and Energy Sales Contract (ESC)
with big scale Independent Power Producers (IPP) prior to 1997. In 1999, the Company entered into
renegotiation of PPA and ESC through Working Group on PLN Special Contract Renegotiation
under the direction of a Presidential Team. Such renegotiation includes, among others, equalization
in contract condition, reasonableness of price and disparity of selling price between IPP and the
Company. In 2006, the Company and all of the IPP have agreed to include some amendments to
the PPAs and ESCs.
As of March 31, 2007, the significant agreements between the Company and its subsidiaries with
IPPs are as follows:
i.
In Operations
No.
Companies
1.
2.
PT Cikarang Listrindo
PT Energi Sengkang
3.
Chevron Geothermal Salak Ltd. and

Dayabumi Salak Pratama Ltd.
PT Makassar Power
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
PT Paiton Energy
PT Jawa Power
Pertamina, Chevron Drajat Ltd.
Texaco Drajat Ltd. and
PT Drajat Geothermal Ind.
Pertamina and Magma
Nusantara Limited 3)
PT Geo Dipa Energy
PT Asrigita Prasarana
PT Mitra Energi Batam
PT Indo Matra Power
Generation
PT Pusaka Jaya Palu Power
Total
Projects/Locations
Cikarang, West Java
Sengkang, South
Sulawesi
Gunung Salak, West Java
Pare-pare, South
Sulawesi
Paiton I, East Java
Paiton II, East Java
Fuels
AF 2)
(%)
Duration
Gas
150
72
Gas
Geothermal
200
330
85
90
1996-2016
1997-19982028/2031
2002-2040
60
1,230
1,220
80
85
83
1999-2016
1994-2040
1995-2030
140
95
110
60
90
85
20002030/2040
1998-19992008/2029
2004-2046
150
600
55
55
17
85
80
80
84
90
2002-2022
2004-2036
2005-2016
2005-2016
2005-2017
80
27
4,484
80
80
2005-2025
2007-2032
MFO
Coal
Coal
Drajat, West Java

Geothermal
Wayang Windu, West
Java
Geothermal
Dieng, Central Java
Geothermal
Palembang Timur,
South Sumatera
Gas
Cilacap, Central Java
Coal
Panaran, Batam Island
Gas
Panaran, Batam Island
Gas
Industrial Zone, Batam Island
Gas
Gunung Megang, South
Sumatera
Gas
Palu, Central Sulawesi
Coal
- 65 -
Capacity
(MW)

ii.
Not Yet in Operation (Development Stage)

No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
Companies
PT Tenaga Listrik Amurang
PT Tenaga Listrik Sibolga
Pertamina and Bali
Energy Ltd. 5)
YPK PLN 6)
Pertamina 7)
PT Geo Dipa Energi 4)
PT Bajradaya Sentranusa 8)
PT Dizamatra Powerindo
PT Cahaya Fajar Kaltim
Generation (unit 2)
PT Gorontalo Energi
PT Ketapang Arya Power
PT Belitung Arya Power
PT Karya Putra Powerin
PT Mahajaya Arya Satya
PT Kassa Listrindo
PT Bukit Pembangkit
Innovative
PT Listrik Nusantara Karimun
PT Sepoetih Daya Prima
PT Kalinda Kita Jaya
PT Ranyza Energi
PT General Energy bali
PT Banyuasin Power Energy
PT Inpola Meka Elektrindo
PT Mambruk Sarana
PT Fajar Futura Energi Luwu
PT Equator Manunggal Power
PT Bangka Manunggal Power
PT Central Korporindo
International
International
International
Total
Projects/Locations
Amurang, North Sulawesi
Sibolga, North Sumatera
Fuels
Capacity
(MW)
AF 2)
(%)
Duration
Coal
Coal
110
200
80
80
2003-2033
2003-2033
Bedugul, Bali
Cibuni, West Java
Kamojang, West Java
Patuha, West Java
Asahan I, North Sumatera
Sibayak, North Sumatera
East Kalimantan
Gunung Megang, South
Sumatera
Gorontalo, Gorontalo
Ketapang, West Kalimantan
Belitung, Bangka Belitung
Tanjung Pinang, Kep. Riau
Jayapura, Papua
Sampit, Central Kalimantan
Tanah Grogot, East
Kalimantan
Lakatong, South Sulawesi
Banjarsari, South Sumatera
Geothermal
Geothermal
Geothermal
Geothermal
Water
Geothermal
Coal
Gas
175
10
60
180
180
10
45
40
95
90
90
85
75
90
75
80
2004-2040
1998-2028
2004-2034
2004-2046
2010-2040
1996-2030
2009-2039
2007-2027
Coal
Coal
Coal
Coal
Coal
Coal
Coal
12
12
12
20
20
12
12
80
80
80
80
80
80
80
2009-2033
2009-2033
2009-2033
2009-2033
2009-2033
2009-2033
2009-2033
Coal
Coal
90
200
80
80
2009-2033
2010-2034
Tanjung Balai, Riau

Lampung Tengah
Kalianda
Kuala Tanjung
Celukan Bawang
Banyuasin
Parluasan, Sumut
Telun Berasap, Jambi
Ranteballa, Sulsel
Pontianak
Bangka
Tembilahan
Coal
Coal
Coal
Coal
Coal
Coal
Mini Hydro
Mini Hydro
Mini Hydro
Coal
Coal
Coal
12
12
12
225
380
125
4.2
6
2.4
50
21
11
80
80
90
84
85
80
80
80
80
80
80
80
2010-2035
2010-2035
2010-2035
2010-2035
2010-2035
2010-2035
2010-2035
2010-2035
2010-2035
2010-2035
2010-2035
2010-2035
Rengat
Coal
11
80
2010-2035
Pangkalan Bun
Coal
11
80
2010-2035
2,283
1)
The agreements are effective from the date of signing and will last for about 19 to 30 years starting on the
commercial operation date.
2)
AF = Power supply factor which should be absorbed by the Company.
3)
Since May 16, 2000, the Company together with Pertamina and Magma Nusantara Limited (Joint Operation Wayang Windu Project) entered into certain interim agreement wherein they agreed to use interim purchase
price tariff until the restructured ESC was signed. On November 21, 2006, amendment to ESC was signed.
4)
Previously owned by Himpurna California Energy Limited and Patuha Power Limited. On May 2, 2001, the
Government of the Republic of Indonesia took over the project and paid the insurance claim of Overseas
Private Investment Corporation (OPIC) amounting to US$ 260 million. In 2002, Pertamina and the Company
established PT Geo Dipa Energi to continue the project.
5)
On February 19, 2004, amendment to ESC was signed.
- 66 -

6)
Previously owned by PT Yala Tekno Geothermal (YTG) and on August 7, 2003, the Presidential Team
approved Yayasan Pendidikan dan Kesejahteraan PLN to acquire the project from YTG.
7)
Previously owned by PT Latoka Trimas Bina Energi (LTBE) and on August 7, 2003, the Presidential Team
approved Pertamina to acquire the project from LTBE. Amendment to ESC has been signed.
8)
On January 8, 2004, amendment of PPA has been signed.
The electricity power price per kWh for gas, MFO and coal power plants were determined by certain
formula as stated in the agreement which regulate, among others, capital cost recovery, fixed
operation and maintenance cost payment, fuel expense and variable operation and maintenance
cost payment. For geothermal heat power plant, the electricity power price ranges between
US$ 0.04011 to US$ 0.070 per kWh.
Based on the agreements with certain IPPs, the Company may exercise its option to purchase all of
the IPPs rights, title and interest in the projects at any time during the contract period.
c. As of March 31, 2007, the Company and its subsidiaries have commitments with contractors and
suppliers for property, plant and equipment procurement, denominated in several foreign currencies
equivalent to Rp 6,615,519 million.
d. As of March 31, 2007, the Company has unused two-step loan facilities in several foreign currencies
equivalent to Rp 20.1 trillion due on 2007 - 2014. The unused facility of Rp 5.4 trillion bears a
provision charge at 0.20% - 0.75% per annum while the remaining facility of Rp 14.7 trillion does not
have any provision charge.
e. On June 9, 2005, the Company has signed the Operation and Maintenance Agreement with
Consortium of Fortum Service OY and PT Medco Energy International Tbk for mobilization,
operation and maintenance of the Tanjung Jati B project during the lease term (Note 27) with
contract value amounting to Rp 2.8 trillion (including 10% VAT).
f.
The Company and PJB faced a lawsuit claim amounting to Rp 162.5 billion and seizure of 88,900
acres of land in favor of the people of Sirnagalih Village (plaintiff), Manis Subdistrict, Purwakarta
Regency Area for the land acquired from Perum Perhutani Unit III West Java (Perhutani) which
was used for the development of water power plant (PLTA) Cirata, one of PJBs power plant. The
Company and PJB served as the second and the third defendants, respectively, while Perhutani and
National Land Agency served as the first and the fourth defendant, respectively. On July 29, 1999,
the Purwakarta District Court ruled in favor of the plaintiff and requested Perhutani to pay the
compensation fee to the people of Sirnagalih Village. Perhutani objected to the decision and thus
appealed to Bandung High Court.
In April 2000, the Bandung High Court decided to accept Perhutanis appeal and to annul the
decision of Purwakarta District Court and stated that the case has no legal basis. Subsequently, the
plaintiff appealed to the higher court.
In July 2003, the Supreme Court of The Republic of Indonesia based on its decision No. 2671
K/Pdt/2001, upheld the appeal of the plaintiff and overruled the decision of Bandung High Court and
the decision of Purwakarta District Court and ordered the High Court to examine and decide on the
case. The High Court has overruled the decision of the Purwakarta District Court and dismissed the
case. As of the date of the issuance of the consolidated financial statements, the case is under the
civil review process.
g. The Company faced claims from Electricity Consumer Group of the Company amounting to
Rp 110.4 billion for electricity shut-down in Nanggroe Aceh Darussalam. On August 25, 2003 and
January 19, 2004, both the District Court and High Court of Nanggroe Aceh Darussalam have
denied the claims. As of the date of the issuance of the consolidated financial statements, the case
is still under appeal to the Supreme Court of the Republic of Indonesia.
- 67 -

h. The Company faced claims from Electricity Consumer Group (plaintiff) amounting to Rp 40.8 billion
for electricity shut-down in Bangka Belitung. The District Court of Bangka Belitung decided in favor
of the plaintiff while the High Court has denied the claim. As of the date of the issuance of the
consolidated financial statements, the case is still under appeal to the Supreme Court of the
Republic of Indonesia.
i.
On May 17, 2004, PJB terminated the contract of Non-OEM Re-engineered Hot Gas Part of Muara
Tawar Project with Columbia Turbo and Engineering Service Pte. Ltd., Singapore (Columbia). On
December 15, 2004, both parties agreed not to use the International Arbitration in Singapore to
settle the case. Furthermore, on July 15, 2005, PJB and Columbia agreed to continue the contract
under the condition that PJB will agree to resolve the obstacle of the contract implementation until
December 2005. Both sides also agreed that the case is temporarily in status quo and will be
negotiated through amicable contract settlement. As of the date of the issuance of the consolidated
financial statements, the contract negotiation is still in process.
j.
The Company faced claims from PT Kereta Api Indonesia (plaintiff) amounting to Rp 120.5 billion in
relation to the land owned by the Company located at Martadinata Street, Jakarta. The District Court
has denied the claims, while the High Court ruled in favor of the plaintiff. As of the date of the
issuance of the consolidated financial statements, the case is still under appeal to the Supreme
Court of the Republic of Indonesia.
k. The Company faced claims from Kilpatrick Green Pty, Ltd. Amounting to US$ 4,193,292 and Rp 1.5
billion on negligence of Java-Madura sea wire reparation contract. The High Court has denied such
claims. The Supreme Court of the Republic of Indonesia on its decision dated June 22, 2006 has
denied the appeal of the plaintiff.
l.
The Company faced claims from PT Kurodona Gaugetama amounting to US$ 2,310,250 for the
violation of lease agreement. The District Court has denied such claims but the High Court of
Banten ruled in favor of the Company. As of the date of the issuance of the consolidated financial
statements, the case is still under appeal to the Supreme Court of the Republic of Indonesia.
m. On November 15, 2006, the Company faced claim from the Facultas Hukum Universitas
Muhammadiyah Sumatera Utara and Persaudaraan Advokat Konsumer amounting to Rp 250 billion
as part of class action relating to damages caused by blackouts in Medan, North Sumatera. As of
the date of the issuance of the consolidated financial statements, the case is in the District Court of
Medan.
n. On January 10, 2007, PT Dalley Energy (plaintiff) has filed a lawsuit against the Company due to the
release of the plaintiff from the auction of PLTU I Banten 600-700 MW - Suralaya project. As of
the date of the issuance of the consolidated financial statements, the case is under legal proceeding
to the South Jakarta District Court.
o. The Company faced claims from PT Bintang Saudara amounting to Rp 61.1 billion related to the
cancellation of the Companys Electricity Power Procurement Agreement. The District Court has
denied such claims. As of the date of the issuance of the consolidated financial statements, the
case is under appeal to the High Court.
p.
The Company also faced claims for compensation of losses, which are immaterial in amount, at
several areas of the Companys transmission/distribution facilities, disputes with the Companys
employees, and cases with customers and suppliers. Management believes that such claims is not
material and will not significantly affect the Companys operations.
- 68 -

q. On February 19, 1999, there has been a damage on the sea wire at Madura Strait caused by Motor
Vessel (MV) Kota Indah. The Company has filed a claim of US$ 5,699,995 and Rp 15,801 million
against Advance Container Lines (Pte) Ltd., Pacific International Lines (Pte) Ltd., Shaukat Ali
Akhtar, the Captain of MV. Kota Indah and The Britania Steam Ship Insurance Association Ltd (P &
I Club). The Company won the case based on Decision of Supreme Court No. 1801 K/Pdt/2002
dated July 15, 2004 and the defendants on a parri-passu basis are forced to pay the compensation
to the Company. The defendants have filed for a civil review and accordingly the Company has
submitted a counter appeal for such review (in process of examination by the Supreme Court of the
Republic of Indonesia). As of the date of the issuance of the consolidated financial statements, the
Company is still in the process of executing the decision of the Supreme Court of the Republic of
Indonesia.
54. SUBSEQUENT EVENTS

a. Based on Presidential Decree No. 71 Year 2006 dated July 5, 2006, the Government mandates the
Company to build coal-fired electricity generating plants at 40 locations in Indonesia, which include
10 coal-fired electricity power plants (PLTU) with an aggregate capacity of 6,900 MW in Java - Bali
and 30 coal-fired electricity power plants with an aggregate capacity of 1,852 MW outside Java Bali. As of the date of the issuance of the consolidated financial statements, the Company has
signed 5 Engineering Procurement and Construction (EPC) contracts as follows :
Location
Contract amounts
US$ *)
Rupiah
Contract
dates
Commercial
Operation
Dates
Capacity
EPC Contractors
PLTU 1 Banten
(Suralaya Baru)
1 x 625 MW
Consortium CNTIC (China

National Technical Import &
Export Corporation, China
National Machinery Import &
Export Corporation, Zhejiang
Electric Power Design Institute
and PT Rekayasa Industri)
334,457,346
865,162
March 12, 2007 January 2010
PLTU 2 Jawa Timur

(Paiton Baru)
1 x 660 MW
Consortium Harbin Power

Engineering Co. Ltd
and PT Mitra Selaras
Hutama Energi
389,206,489
706,630
March 12, 2007 January 2010
PLTU 2 Banten
(Labuan)
2 x 315 MW
Consortium Chengda
Engineering Corporation
of China dan PT Truba
Jurong Engineering
339,479,648
1,398,292
March 12, 2007
July 2009
PLTU 1 Jawa Barat

(Indramayu)
3 x 330 MW
Joint Operation of Sinomach,

CNEEC, and PT Penta Adi
Samudera
696,734,421
1,497,545
March 12, 2007
July 2009
Consortium Zelan Priamanaya - Tronoh
308,000,000
2,248,800
March 21, 2007 August 2010
PLTU 1 Jawa Tengah 2 x 315 MW

(Rembang)
*) In full amount
The Company has paid down payment amounting to USD 203,284,629 and Rp 600,673 million
accordance with the terms of the contracts.
b. On May 16, 2007, the Company has filed Registration Statement (Pernyataan Pendaftaran) for
Public Offering PLN IX Bond Year 2007 with an aggregate amount of Rp 2,700,000 million, which
consists of Series A bonds with a term of 10 years and Series B bonds with a term of 15 years, and
Sukuk Ijarah PLN II Bond Year 2007 of Rp 300,000 million with a term of 10 years (Public Offering
of Bond) to Capital Market Supervisory Agency (Bapepam) and Financial Institutions. As of the date
of consolidated financial statements, such obligation offering is still in process.
- 69 -

c.
On May 16, 2007, the Company and Pertamina entered into a new Fuel Buy and Sell Agreement ,
which include the following terms, among others: (i) to use monthly fuel price determined by
Pertamina for the period of January 1 to April 30, 2007 and, the fuel price of 109.5% of Mid Oil
Platts Singapore (MOPS) plus value added tax for the period of May 1 to December 31, 2007; (ii)
the fuel price subsequent to December 31, 2007 will be determined by both parties every year; (iii)
the terms of payment and the related penalty on late payment; (iv) effective on May 1, 2007, the
unpaid balance of payable for the purchases of fuel until April 30, 2007 will bear an interest with a
rate per annum of Certificate of Bank Indonesia plus 1.3%, until settled by issuance of PLN Bonds,
which is no later than August 31, 2007; (v) the maximum payable to Pertamina, include bonds
which will issued amounting to Rp 18 trillion; (vi) this agreement is valid for 5 years since January 1,
2007 until December 31, 2011.
d. On July 19, 2003, IP, a subsidiary, entered into a Gas Sales Agreement with Santos (Sampang) Pty
Ltd, Coastal Indonesia Sampang Ltd, and Cue Sampang Pty Ltd, collectively the Contractors. This
agreement states, among others, that the Contractors will supply gas to IP under a total potential
production of 90.1 TBtu to 90.9 TBtu until 2012. The effective date of this agreement is subject to
certain conditions, which includes the approval of the Credit Facility Agreement by the Contractors.
In relation to this condition, IP and the Contractors entered into the first addendum to the Gas Sales
Agreement on May 24, 2007. This addendum pertains to the issuance of Letter of Credit amounting
to US$ 55,000,000 on first addendum date for the Letter of Credit period commencing on the date
of its issuance and ending on twelve months after Start Date, which is the date when IP has been
notified that the facilities for the supply of gas are ready for production, processing and delivery of
gas, or thirty six months after May 24, 2007, whichever is earlier. After the Start Date, the amount of
the Letter of Credit can be reduced in value by the monthly payment of IP, provided that, the amount
of the Letter of Credit will not be lower than US$ 20,000,000. In relation to the addendum, IP
entered into a Credit Facility Agreement amounting to US$ 55,000,000 with the issuing banks,
namely Citibank N.A. Jakarta, PT Bank Internasional Indonesia and Standard Chartered Bank,
Jakarta on May 24, 2007. On June 4, 2007, IP has paid US$ 20,000,0000 as cash collateral
account. This credit facility is governed by certain covenants, including, among others, the disposal
of assets, financial indebtedness, mergers and acquisitions and payment of dividends. On June 11,
2007, IP sent a letter of request to the issuing banks for the amendment of the Credit Facility
Agreement regarding the covenant on the limitation on disposal of assets and payment of dividends.
As of the date of the consolidated financial statements, the request is still in process.
55. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements of the Company and its subsidiaries for the three-month periods
ended March 31, 2007 and 2006 have been approved by the directors for issue on June 12, 2007.
********
- 70 -

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PERUSAHAAN PERSEROAN (PERSERO)

PT PERUSAHAAN LISTRIK NEGARA

PERUSAHAAN PERSEROAN (PERSERO) PT PERUSAHAAN LISTRIK NEGARA

CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2007 and

Consolidated Statements of Income

Consolidated Statements of Changes in Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Independent Accountants Report

Kasner Sirumapea, BAP

PERUSAHAAN PERSEROAN (PERSERO)

See accompanying notes to consolidated financial statements

PERUSAHAAN PERSEROAN (PERSERO)

LIABILITIES AND EQUITY

TOTAL EQUITY AND LIABILITIES

See accompanying notes to consolidated financial statements

PERUSAHAAN PERSEROAN (PERSERO)

Total Operating Expenses

Other Income (Charges) - Net

NET INCOME (LOSS)

See accompanying notes to consolidated financial statements

PERUSAHAAN PERSEROAN (PERSERO)

Balance as of March 31, 2006

Retained earnings (deficit)

See accompanying notes to consolidated financial statements

PERUSAHAAN PERSEROAN (PERSERO)

CASH FLOWS FROM INVESTING ACTIVITIES

Net Cash Used in Investing Activities

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

CASH AND CASH EQUIVALENTS AT END OF PERIOD

CASH FLOWS FROM FINANCING ACTIVITIES

See accompanying notes to consolidated financial statements

PERUSAHAAN PERSEROAN (PERSERO)

See accompanying notes to consolidated financial statements

PERUSAHAAN PERSEROAN (PERSERO)

PERUSAHAAN PERSEROAN (PERSERO)

March 31, 2006

Eddie Widiono Suwondho

Eddie Widiono Suwondho

PERUSAHAAN PERSEROAN (PERSERO)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidated Financial Statement Presentation

PERUSAHAAN PERSEROAN (PERSERO)

Foreign Currency Transactions and Translation

Property, Plant and Equipment

Land is stated at cost or revalued amount and is not depreciated.

PERUSAHAAN PERSEROAN (PERSERO)

Assets Not Used In Operations

PERUSAHAAN PERSEROAN (PERSERO)

Cash and Cash Equivalents

PERUSAHAAN PERSEROAN (PERSERO)

Issuance Costs of Bonds

Revenue and Expense Recognition

Troubled Debt Restructuring

PERUSAHAAN PERSEROAN (PERSERO)

Earnings (Loss) per Share

PERUSAHAAN PERSEROAN (PERSERO)

PT Artha Daya Coalindo

Total assets before

PT Pelayanan Listrik Nasional

PT Indonesia Comnets Plus

PT Prima Layanan Nasional

PT Pelayanan Listrik Nasional