POLY - Annual Report 2012

Contents
Company Description
Financial Highlights
Message from the President Commissioner
Message to Shareholders
Management of the Company
10
Management Report
14
Management Discussion and Analysis
19
Corporate Governance
20
Corporate Information
22
Independent Auditor Report
29
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Annual Report 2012
Company Description
PT Asia Pacific Fibers Tbk (formerly PT Polysindo Eka Perkasa Tbk), established in 1984, is a leading
polyester manufacturer in Indonesia. Its manufacturing operations span the entire polyester
production chain, from raw materials to end products, ensuring quality and consistency. PT Asia
Pacific Fibers is the only integrated producer of polyester in Indonesia. The manufacturing facility for
PTA, continuous polymer, and staple fiber is located in Karawang, West Jawa. Filament yarn,
produced at the largest yarn facility in Indonesia, is located in Semarang, Central Jawa.
PT Asia Pacific Fibers current products include Purified Terephthalic Acid (PTA), polyester chips,
polyester staple fiber, polyester filament yarn, and performance fabrics. The Companys products
are marketed and sold both in domestic and international markets.
The following is the report on the business performance of PT Asia Pacific Fibers Tbk in 2010. The
term Company used throughout the report refers to PT Asia Pacific Fibers Tbk and all its
subsidiaries. The term APF refers to PT Asia Pacific Fibers Tbk as a stand-alone entity, while the
term Texmaco Jaya refers exclusively to PT Texmaco Jaya Tbk.
Annual Report 2012
Financial Highlights
The following table sets forth the financial highlights of the Company for the years ended 31st
December 2008 to 2012.
The Companys current auditors are Drs. Hendrawinata Eddy & Siddhartha (Indonesian Member firm
of Kreston International)
st
Current Assets
Fixed Assets-Net
Total Assets
Liabilities
Equity
Net Sales
Gross Profit
Operating Profit
Net Income
Net Working Capital (1)
Profit per Share-Net
Gross Profit Margin
Net Profit Margin
Return on Investment
Return on Equity
Current Ratio
Debt to Total Assets
Debt to Equity
%
%
%
%
2012
US$ 000
2011
US$ 000
237,040
129.394
403.252
1,201,091
(797,838)
599,331
(5,982)
(23,515)
(32,119)
(931,551)
US$ (0.01)
0.07
0.11
NA
NA
0.2
2.98
(1.51)
231,660
184.837
452.635
1,218,898
(766,263)
635,535
13,879
(19.863)
(8,840)
(936,758)
US$ 0.00
2.18
1.39
NA
NA
0.2
2.69
(1.59)
Notes:
(1)
Current Assets minus Current Liabilities
(2)
As Restated
Annual Report 2012
(2)
31 December
2010
Rp Mill
1,698,564
1,775,584
3,948,489
11,900,693
(7.952.202)
4,455,449
331,393
14,196
334,977
(9,522,265)
Rp141
0.07
0.08
8,5
NA
0.2
2.98
(1.50)
2009
Rp Mill
1,423,994
2,290,009
4,569,624
12,449,681
(7,880,058)
3,511,507
(43,902)
(314,297)
1,182,788
(10,226,269)
Rp(498)
(1.3)
33.7
25.9
NA
0.1
2.72
(1.58)
2008
Rp Mill
1,235,848
2,802,157
4,912,990
13,979,999
(9,067,010)
3,740,569
(217,811)
(518,217)
(2,120,676)
(11,798,530)
Rp(245)
(5,8)
(56,7)
(43.1)
NA
0.1
2.85
(1.54)
Message from The President Commissioner
Dear Esteemed Shareholders,

The polyester industry has moved into secular decline after witnessing two successive peak years in
2010 and 2011. Global economic concerns and particularly Europes well advertised problem and a
slower than expected U.S. economic recovery have severely affected the global textile trade, and
dampened the demand outlook. Polyester chain margins continued to slide primarily driven by a
crash in PTA margins. Significant capacity addition in China during the year and the resultant
excessive supply position has triggered this decline. The performance of Asia Pacific Fibers during
the year 2012 has witnessed declining profitability. The Company has posted EBITDA of US$36.84
million on sales of US$600 million for the year. Nonetheless, the Company was able to maintain the
operations of both its plants near full capacity through the year supported by strong domestic
market demand. The Company increased its supply of its PSF and PFY products to the domestic
market and continued to play a leadership role in providing essential raw material to the
downstream textiles and clothing sector in Indonesia.
Despite financial constraints, the Company continued to implement certain strategic Capex
investments with financial assistance from its majority creditors and shareholders. This has helped
increase its competitiveness and allowed it to diversify into specialty and value added products in
niche markets.
Economic conditions worldwide continued to deteriorate through the third quarter of fiscal 2012
the year ending March 31, 2013as the impact of persistent economic problems in Europe, already
weakened by austerity measures, particularly in southern Europe, spread to other regions. The
effects of the European slump, a reversal in the trend toward excessive investment, and monetary
restraint fuelled greater fears of a slowdown in the emerging economies overall.
However, the Indonesian economy continued to maintain a growth rate of above 6%, strongly
supported by its robust domestic consumption and investment growth helping to shield it from the
global economic turmoil. GDP expanded 6.23% in 2012 while the outlook for 2013 remains positive
at 6.3% affirming Indonesias position as one of Asias fastest growing economies and next only to
China.
Foreign direct investments in Indonesia grew 26% to a record US$24.5 billion in 2012 as companies
invested in areas such as coalmining and automotive plants to tap the countrys abundant natural
resources and 240 million-strong consumer markets. FDI is likely to remain robust over the medium
term after Moodys Investors Service and Fitch Ratings upgraded Indonesias credit rating to
investment grade last year.
Due to thedeclining trend in commodity prices, Indonesias exports in value terms has fallen to
US$190.04 billion in 2012 from US$203.6 billion (-6.61%) with the textiles sector accounting for
US$12.56 billion (6.60% of total exports). On the other hand imports for the year increased to
US$191.67 billion from US$177.44 billion (8.02%) as a consequence of accelerated economic activity.
The imports are more related to raw materials and capital goods rather than consumer goods.
Annual Report 2012
The Companys continuous efforts to restructure its balance sheet have been positive with PPA, one
of the companys secured creditors, actively reviewing a proposal to resolve their outstanding issues.
After this restructuring, the Company will be in a position to significantly improve its financial
standing and will finally be able to implement its long-term growth plan.
The Commissioners wish to extend their appreciation to the Directors and all APF employees for
their continued efforts and dedication throughout 2012 year where the company faced continued
financial and operational challenges whilst strengthening its strategic market position. The Company
continued to improve its corporate governance standards and complied with the various regulations
and requirements by BAPEPAM and BEI. We also wish to acknowledge our sincere gratitude to our
customers, suppliers, and shareholders for their continued support and the confidence they have
entrusted to the Company in this critical transition period.
Robert Clive Appleby

President Commissioner
Annual Report 2012
Message to Shareholders
Dear Shareholders:
Despite slower global economic growth and continued uncertainty in the global financial markets,
Indonesias economic growth remained strong throughout 2012. Indonesias GDP grew 6.23% in
2012 and the country remained among the worlds fastest-growing economies (the second best
after that of China among G-20 members). While many other emerging markets in Asia are reliant on
exports, more than 60% of Indonesias GDP is generated by domestic consumption, shielding it from
the vicissitudes of the global economy. Indonesia's resilience to the global economic slowdown
driven by its robust domestic consumption has made it a magnet for foreign investment. However,
the growth was slightly below 2011s 6.5% growth, primarily due to slowing export growth of
commodities such as coal and palm oil to China. The deceleration in the fourth quarter 2012 should
provide a cautious approach for future.
On the other hand, Indonesia suffered its first ever-annual trade deficit in 2012 as exports to most of
its trading partners fell during the year amid the slowdown in the global economy. The countrys first
annual trade deficit in 2012 has put pressure on the rupiah currency. The rupiah weakened through
the year 2012 and has fallen steeply to close at Rp 9,670 per US$ as compared to Rp 9,068 per US$
as at December 2011, depreciating over 6.6% during the year. The countys trade deficit reached
US$1.65 billion last year, the first such deficit in Indonesias history. Exports dropped to US$190.04
billion, down by 6.61% from last year, much deeper than the forecast. Imports, on the other hand
surged by 8.2% to US$191.67 billion, driven by imports of intermediary goods for domestic
production (73.10%), followed by capital goods (19.90%) and consumer goods (7%).
Polyester Industry: Global and Domestic Trends

After a strong performance in 2010 and 2011 supported by handsome commodity margins,
especially PTA margin and positive substitution effect from Cotton, 2012 saw a reversal of all these
favorable conditions. Asian commodity segment has significantly underperformed hit by the
economic turmoil. Huge capacity additions in PTA, polyester fiber and polyester filament led to
lower operating rate weakened the spreads across the polyester value chain. Added to this, steep
fall in cotton prices during the year had also put pressure on polyester prices and polyester chain
margins. These factors have impacted the performance of the polyester Industry globally. Global
economic downturns driven by European debt concerns and the US economic concerns have
severely affected the global textile trade, and dampening the demand outlook.
However from the production standpoint the polyester industry remained buoyant with the overall
polyester polymer production reaching 58.90 million tons, a growth of 3.1 million tons or 5.5% year
2012, marginally slowed down from 6.0% in 2011 as the global economy stumbles along. But a
gradual recovery is anticipated over the 2013-2016 period at between 6-7% per annum, marginally
lower than last years estimates. Long term growth rates are trending lower but still look impressive
compared with other major petrochemical related business sectors. It is anticipated that the
polyester growth would be driven by fundamental new domestic growth within key Asian countries
such as China, India and Indonesia as the demographic and economic shifts lead to higher local
Annual Report 2012
demand for fibers. This in turn looks set to stimulate a reversal in future trade flows of both higher
added value textiles and apparel.
Soft outlook for crude, improving capacity positions in PTA, supported by PX should ensure soft price
structure for polyester in 2013 15, while the polyester consumption is expected to remain strong.
Besides, soft cotton prices projected till end of the cotton season would also limit the polyester
prices and margins in 2013. Hence the prices of PSF and yarn are expected to remain soft and the
polyester chain margins will be under pressure at least in 2013. Any longer term shortages of cotton
would only add further upside to the projected growth and margins.
Domestic market continue to remain strong, irrespective of declining prices, driven by strong
domestic consumption with per-capita consumption rose to 6.18 kg in 2012 from 6.03 kg for the
previous year. While the domestic demand for polyester staple fiber increased by 7%, the filament
yarn demand rose by 16% over shooting the growth in production forcing significant increase in
import of filament yarn. Import of filament yarn increased by 45% in volume during 2012. Prompted
by this strong growth in domestic consumption for polyester, the upstream manufacturers have
taken up capacity additions to increase up to 1 million tons each for fiber and filament yarn
capacities by 2014 from the current levels of 700 thousand tons and 850 thousand tons respectively.
Supported by a strong and sustained economic growth of 6.23% in 2012 and projected growth of
6.3% in 2013 with the inflation under check, the consumer confidence level continues to remain
robust boosting the domestic consumption. The per capita consumption of textiles is projected to
move up to 6.60 kg in 2013 with corresponding increase in polyester consumption.
Textile exports from Indonesia decreased in 2012 to US$12.56 billion as compared to US$13.26
billion in 2011. While the total volume of textile exports increased marginally by 0.5%, the decrease
in value was mainly due to fall in prices triggered by the global recessionary trend and drop in
international prices for cotton and polyester. Whereas, volume of textile imports in 2012 surged
significantly by 12.2% mainly driven by yarn imports (both spun and filament yarn). However, in
value terms textile imports decreased to US$7.94 billion in 2012 as compared to US$8.53 billion in
2011, registering a decrease of 6.9%, mainly due to declining price trend.
Company Performance
The Companys performance was significantly impacted by the down turn in global economy during
the year 2012, rising energy costs coupled with decline in polyester chain margins. Despite the
dampening market conditions, the Company was able to maintain the operations of both of its
plants to the near full capacity with high standards of efficiency. The Company has posted a sales
turn over of US$600 million as compared to US$635 million in the previous year. Despite increased
volume of production and sales, the total sales revenue declined due to drop in selling prices for all
products triggered by sharp fall in PTA margins during the year. The company has therefore ended
the year with an operating loss of US$23.51 million as compared to US$19.86 million for the
previous year. However the Company was still able to post an EBITDA of US$36.84 million for 2012
as compared to an EBITDA of US$77.7 million for 2011. Performance Fabric division of the Company
significantly improved its performance during the year 2012 by achieving sales revenue of US$11.32
million with an EBITDA of US$1.74 million. The overall fall in profitability is primarily on account of
the steep fall in PTA margins during 2012 that bottomed out in last quarter below the cash cost. This
steep fall in margin was mainly driven by the huge capacity addition of PTA in China coupled with
weak demand for polyester products on account of lull in global textile trade.
Annual Report 2012
We are pleased to inform that the Company added a range of specialty and value added products to
its existing product portfolio through Capex investments and successfully placed these products both
in domestic and international markets.
The fiber expansion project at Karawang with a capacity addition of 54,000 MT per annum was
completed during the year 2012 and the commercial production started from May 2012, resulting in
PSF volume increase of 13% for part of the year. With the benefits of the on going Capex projects
accruing to the Company effective 2013, the Company expects to gain significant contribution to its
future earnings.
In compliance with the PSAK 10 (Indonesian Accounting Standards), the Company has reported its
financials in US Dollars for the year 2012 as US Dollar being the dominant functional currency.
Outlook
The economic outlook for Indonesia in 2013 remains positive despite a weak global economy, but
maintaining strong investment growth is vital. The World Bank projects a marginal rise in GDP to 6.3
percent in 2013. This projection assumes that domestic consumption and investment growth remain
strong, while improving growth in Indonesias major trading partners supports a modest recovery in
exports.
However, domestic environment for manufacturing sectors expect to undergo a tough phase with
the looming escalatory trend in two major cost fronts viz., manpower and energy. Both gas prices
and electricity tariff are increasing in 2013, with further increases beyond 2014 not entirely ruled
out. These factors will add to the pressure on cost competitiveness of the domestic manufacturers.
The Company has, however, taken a series of cost-saving initiatives, especially in energy saving areas
and manpower rationalization efforts to offset these cost increases. In order to fully secure the
energy supplies and also to optimize its cost of energy for the manufacturing unit in Karawang, the
Company is actively pursuing through restructure and reorganization of power producing plant in
Karawang.
The Company is actively engaged with its secured creditors to find a solution to its long pending
secured debt restructuring at the earliest possible time. The Company has presented an alternate
restructuring option to its secured creditors that are under active consideration. Post restructure,
the Company will have a sound and healthy financial base with its debts brought down to
sustainable levels. This would in turn enable the company to raise finance from market to meet its
short and long term investments to fund its growth plans. All of these efforts will improve the
performance of the Company significantly, and to reposition it to the forefront of the polyester
industry combining market reach, innovation and integration driving superior performance and
reputation.
We would like to take this opportunity to express our sincere gratitude to our Shareholders,
Customers, Suppliers, Bankers, and Employees who continue to support the Company during this
crucial stage of restructuring and re-emergence as a prominent leader in the manufacture of high
quality polyester products.
V. Ravi Shankar
President Director
Annual Report 2012
Management of the Company
Commissioners and Directors

In accordance with its Articles of Association, Asia Pacific Fibers is managed by a Board of Directors
under the supervision of a Board of Commissioners. The members of the Board of Commissioners
and the Board of Directors are chosen and appointed by the shareholders of APF at the Annual
General Meeting. The Articles of Association permit the President Director to act alone, or where the
President Director is unable to act, any two directors to represent and act on behalf of the Board of
Directors.
The Current members of the Board of Commissioners of APF are as follows:
Name
Age
50
President Commissioner of APF since 2007. Director

and Chief Investment officer of Asia Debt
Management Hongkong Limited (ADM). Prior to
joining ADM, he was a Managing Director of the Asian
Fixed Income Division at Credit Agricole Indosuez
specializing in structured Asian Debt.
Christopher Robert Botsford
51
Commissioner of APF since 2007. Chief Executive

Officer and Director of Asia Debt Management
Hongkong Limited (ADM). Prior to establishing ADM,
he ran the Asia-Pacific regional debt and derivatives
operations for Republic National Bank of New York
which provided hedging and other debt management
structures to regional users.
Robert McCarthy
58
Commissioner of APF since June 2008. He holds a

Master in Business Administration from Yale School of
Management, and a Masters Degree in Medieval
History from Columbia University. He manages
distressed investments for the Spinnaker Funds. He
was founding director of Morgan Grenfell and worked
as director of Deutsche Bank.
Dono Iskandar Djojosubroto
68
Commissioner of APF since February 2008. He holds a

degree from University of Indonesia and MA & PhD in
Economics from The University of Illinois, USA.
Annual Report 2012
10
Principal Occupation
Previously he worked as the Secretary General of the

Minister of Finance, Deputy Governor of Bank
Indonesia, and Executive Director representing twelve
Asian Countries in the IMF. He was also a member of
Board of Commissioners and Supervisory Board in
various Government Institutions, such as PT Jasindo,
PT Jasa Marga, Bank BRI and Bank BTN.
Timbul Thomas Lubis SH, LLM
60
Commissioner of APF since 1990, Partner of Lubis

Ganie & Surowidjojo Law Firm since 1982. He is a
graduate of University of Indonesia and University of
Washington Law School.
Kamun Cheong
33
Commissioner of APF since 2012. She is a bachelor

degree holder in Commerce (Honours) from the
University of Melbourne. Currently involved in the
analysis of equity, credit and private investments in
South East Asia region for Spinnaker Capital funds.
Prior to joining Spinnaker she worked in Deloitte &
Touch and ABN handling financial advisory services
and Debt/Investment management functions.
Annual Report 2012
11
The Current members of the Board of Directors of APF are as follows:

Name
Age
V. Ravi Shankar
49
President Director of APF since 2002. He is a graduate of

Production Engineering. He has also completed Advanced
Management Programme from Harvard University in 2004.
Prior to joining APF, he managed the Textiles Division of the
subsidiary Company of APF and also worked in a machinery
manufacturing company in Indonesia and India.
Masjhud Ali, MBA
71
Director of APF since 2002. Prior to joining APF, he was

Director of PT Bank Pembangunan Indonesia (Bapindo) and
was a Director in Bank Putera.
S. Jegatheesan
63
Director of APF since 2002. He is a graduate in Electrical

Engineering and has been with APF since 1989. Prior to
joining APF, he was General Manager of a yarn producing
company and worked as Project Manager for an engineering
company in India.
Peter Vinzenz Merkle
55
Director of APF since 2007. He joined APF in 2000 as head of

the Karawang unit producing PTA, Polymer, and Fiber. Prior
to joining APF, he worked in various renowned chemical and
fiber companies such as Trevira Group and Hoechst AG as
the head of their R&D and Technology Development
Divisions. He has an MS in Chemical Engineering from
University of Stuttgart, Germany, specializing in polymer
processing and environmental technologies.
Annual Report 2012
12
Principal Occupation
Annual Report 2012
13
Management Report
An Overview of Polyester Industry

The Year 2012 was a year of challenges for the polyester industry. Polyester production growth has
certainly slowed to reflect the economic conditions but the industry continues to add significant
capacity with over 30 million tons of new polymer capacities still being added in the 2012-2015 time
frame, most of which again is being built in Asia and of course predominantly inside China. This is
driving production growth somewhat higher than true demand and has manifested itself in a very
noticeable stock overhang of finished polyester related products.
Global petroleum prices has exhibited a declining trend in 2012 and remained less volatile closing at
US$88/barrel (WTI) in December 12 averaged at US$94/barrel. Whereas the prices of the Companys
primary raw materials, Paraxylene and MEG, on the contrary, continued to be highly volatile strongly
triggered by tight supply situation. The volatility trend continued into the year 2013 as well with the
supply situation remains balanced to tight.
The year 2012 saw a slowdown in polymer production, a growth of 3.1 million tons or 5.5%, which is
a marginally below normal trend line growth with the total production reaching around 58.9 million
tones. The Asian markets in particular have suffered a significant slowdown and will take some time
to adjust to this new growth trend particularly inside China and India. However, the polymer
production in 2013 is estimated to grow at 7% with an annual rise of 4.1 million tons. On the longer
term the industry will be driven by fundamental new growth within key Asian countries such as
China, India and Indonesia as the demographic and economic shifts lead to higher local demand for
fibers.A further upside in Polyester demand is possible in the event of cotton shortages as predicted
by experts. Total Indonesian exports of all goods reached US$190.04 billion in 2012, as compared to
US$203.50 billion in 2011. While the exports of textile products accounted for US$12.56 billion, as
compared to US$13.26 billion in 2011. The decrease in textile exports in year 2012 was mainly due
to drop in commodity prices.
Domestic market continued to remain strong with the per capita consumption increased to 6.18 kg
from 6.03 kg in 2011. Domestic demand for both polyester staple fiber and filament yarn increased
significantly by 7% and 16% respectively in the year 2012. The excessive demand for filament yarn
was met from increased volume of imports at relatively lower prices putting pressure on domestic
prices. With the ongoing investments by the upstream on expansion, both the polyester staple fiber
and filament yarn capacity is expected to increase up to 1 million tons each in 2014. While the
domestic demand for polyester is expected to grow in the near term, prices and margins will be
under pressure due to stiff competition and cheap imports from China and Malaysia.
PTA (Pure Therepthalic Acid) & Polymer
The global production of PTA in 2012 grew by around 5.4% or just over 2.6 million tons to reach 50.2
million tons. The markets are being influenced by massive new PTA investments taking place
globally in the second half 2012-17-time frame. We estimate total effective PTA capacity will grow
by 34.5 million tons from 58.8 million tons in 2012 to around 93.3 million tons in 2017.
Annual Report 2012
14
Staple Fiber
Global polyester staple fiber production in 2012 was estimated to be 15.23 million tons as compared
to 14.51 million tons in 2011, registering a growth of 5% over 2011. The Companys staple fiber
production in the year 2012 increased by 13% over the previous year mainly contributed by the
capacity increase supported by steady demand in the domestic market.
Filament Yarn
In 2012, global polyester filament yarn production was estimated at 26.68 million tons as compared
to 25.13 million tons in 2011, thus registering a growth of over 6%. The Companys filament yarn
production continues to remain at optimum levels and increased by 5% driven by steady market
demand.
Performance Fabric
The performance fabric division continued to operate through a production tolling arrangement with
its erstwhile subsidiary, Texmaco Jaya. Even after the bankruptcy of PT Texmaco Jaya, the tolling
arrangements continued with the approval of the commercial court. The production and sales of
performance fabrics optimized during the year 2012.
Product Range
The Companys product range includes:
Product
1. PTA (Purified Therepthalic Acid)
2. Polyester Chips
Type
Semi-Dull
Super Bright
Optical Bright
3. Polyester Staple Fiber
Normal
4. Polyester Filament Yarn
Normal
Micro Filament
5. Fabrics
Hi filament
Differential
Shrinkage
High
performance
fabrics
Utilization
Manufacture of Polyester Chips
Polyester Filament yarn/staple fiber
Filament yarn/ staple fiber
Polyester staple fiber
Filament yarn
Spun Yarn
Non Woven
Fiber Fill
Tailored Clothing - Formal and Casual
Super fine apparel fabrics with cotton
tencel free
Fine apparel fabrics
Fine apparel fabrics
Outdoor wear, Winter clothing active wear,
sportswear, childrens wear
Annual Report 2012
15
Marketing Distribution
APF is a trusted long-term partner for global textile consumers producing fabrics for apparel, hometextiles, Automotive, footwear, sportswear, hygiene and health care and various other applications.
The Company has a very strong marketing network and supply chain management which
differentiate it from its competitors. It maintains a very close collaboration with its customers
through tailored and innovative branded products unique to APF and enjoy high level of customer
loyalty. As a strategic move, the marketing team focuses on product and application innovation to
customize products for value creation. APF has recently developed and branded the premium tier of
its portfolio of specialty products that provide performance Comfort, aesthetic and other
advantages.
APF continues to focus its efforts to maintain the leadership position in the domestic market and
increase its market share for its products filament yarn and staple fiber.The Company has allocated
higher volume of production to domestic market to meet the increased requirement of the down
stream customers. Domestic sale proportion has increased to 83% in 2012 as compared to 78.8% for
the previous year.
Human Resources
Asia Pacific Fibers recognizes that human resources are the core assets of the company and
continuously strives to nurture and develop the talents and skills to keep pace with the
advancement in technology and changing customer needs. The employees are put on specialized
training to upgrade their skill levels with a view to provide career growth opportunities. A wellstructured performance appraisal and incentive scheme is in place to boost the motivation of the
employees. The employees are encouraged to participate in collective decision-making process
through well-established communication channels across the organization and contribute to value
creation. The Company endeavors to maintain harmonious industrial relations and implemented a
number of welfare measures such as education, health, and social security to improve their social
status. The Company has also formulated an Employee Stock Option Plan to reward performance
and promote a sense of belongingness amongst the employees.
Environment
With its strong commitment to environmental safety and protection, the Company is strictly
adhering to stringent emission norms of its effluents. The Company is fully compliant to all
applicable environmental standards of Indonesia, with Badan Pengendali Lingkungan (BAPEDAL) as
its regulating authority. The Company also installed and commissioned 100% waste recycling facility
at Karawang (Glycolysis) to convert all its waste into green label products and to ensure ZERO
waste from its production facilities.
Location & Type of Assets Work more than 5% of Total Assets
The Company has certain assets whose values exceed 5% of the Companys total assets. For APF,
these assets, which essentially consist of land, machinery and buildings, including the PTA Plant,
Polymer facilities, fiber line and yarn equipment, and are located in two manufacturing facilities in
Kaliwungu, in Central Java, and Karawang, in West Java.
Annual Report 2012
16
Hypothecated Fixed Assets

APF has production facilities at Karawang and Kaliwungu. Land totaling 15.9 hectares, with buildings,
plant and equipment and located in Kaliwungu facilities, are hypothecated to IBRA (Indonesia Bank
Restructuring Agency). Land totaling 26.62 hectares, with buildings, and production facilities at
Karawang are secured to the Companys guaranteed Secured Notes.
Dividend Policy
APF has historically paid an annual dividend after approval of the Companys shareholders at the
Annual General Meeting of the shareholders. However in view of the current financial situation, APF
has not declared a dividend for 2012.
Stock Price Performance
2012
Highest
Lowest
Volume
2011
Highest
Lowest
Volume
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
(Rp)
(Rp)
(Shares)
485
330
10,158,900
480
220
14,103,900
315
188
8,344,200
245
196
11,564,500
(Rp)
(Rp)
(Shares)
245
170
4,343,500
540
180
38,711,200
810
365
70,257,100
590
310
33,241,900
Restructuring Status & Financing Activities

The secured debt restructuring is under active consideration by its majority creditors and PPA. After
several rounds of discussions amongst the Company and the Secured creditors, final response in the
form of a counter proposal is still awaited from PPA. In the meantime, Damiano Investments BV, the
majority shareholder is also the majority holder of secured debts other than the PPA portion, has
provided a working capital and Letter of Credit facilities for the procurement of raw materials. This
has primarily helped the Company to sustain its operations and maintain optimum capacity
utilization of its production facilities. Damiano Investments BV have also extended Capex loan to
fund its capital expenditure projects that are critical to improve the competitiveness of the
Company.
In view of its tight working capital position and non completion of secured debt restructuring, in
January 2011 APF sought and received the approval of its unsecured creditors for the postponement
of repayment of its first installment for the unsecured New Notes due on 15th February 2010 till 15th
February 2012. The majority of New Note holders have approved the request by Polysindo (now
APF) to postpone the repayment until (and commencing in) February 2012.
Annual Report 2012
17
Subsequently in January 2012, the Company again sought and obtained approval of its unsecured
creditors for extension 3 years time and re-schedule principal repayments commencing from
February 2015 instead of February 2012 as approved earlier. The majority New Note holders have
approved the above request by the Company in their meeting held on 16 th January 2012 at
Singapore. The Company has subsequently started servicing of interest on new notes with effect
from 15th May 2012 and has so far paid interest for three quarters during the year 2012.
The Company has four subsidiaries: PT Texmaco Jaya Tbk. (Bankrupt under liquidation), Polysindo
International Finance Company BV. (PIFC), Polysindo Mauritius Ltd., and PT EastindoPolymertama
(Eastindo).
PT Texmaco Jaya Tbk (Bankrupt under liquidation)
PT Texmaco Jayas was declared bankrupt by the commercial court Jakarta on 19 th August 2011 as
per the Court order 10/PKPU/2010/PN.NIAGA.JKT.PST. Jo No: 71/PAILIT/2010/PN.NIAGA.JKT.PST.
The Court also appointed Dr. MARSUDIN NAINGGOLAN SH., as the supervisory Judge and a team of
Receivers (Curators) Peter Kurniawan, SH., M.Kn., Lili Badrawati, SH., and Permata N. Daulay, SH.
MH. to monitor and enforce the liquidation process as per the law. Subsequent to completion of
debt verification, the Court had declared PT Texmaco Jaya Tbk insolvent and ordered liquidation of
the bankrupt estate vide Court order no 71/PAILIT/2010/PN.NIAGA.JKT.PST dated 26th September
2011. The Company is currently under liquidation process.
In the meantime, the Court has approved continued operation of its Performance Fabrics division as
a going concern with a view to maintain the value of the bankrupt assets. In accordance with the
Court approval and pursuant to the tolling agreement between the team of curators and PT Asia
Pacific Fibers, the Performance Fabrics division continues to operate on tolling basis.
Polysindo International Finance Company BV. (PIFC) and Polysindo (Mauritius) Ltd.
Polysindo International Finance Company BV (PIFC) and Polysindo (Mauritius) Ltd. are wholly owned
subsidiaries of PT. Asia Pacific Fibers Tbk and act as financing vehicle for APF. The double taxation
treaty between Indonesia and Mauritius has expired, hence APF intends to wind-up Polysindo
(Mauritius) Ltd.
PT Eastindo Polymertama (Eastindo)
Eastindo was originally formed to implement the expansion of PTA and polymer production in
Karawang which was later implemented through APF. As Eastindo has not engaged in any
manufacturing activity, the Company is planning to wind-up PT Eastindo Polymertama.
Annual Report 2012
18
Management Discussion and Analysis

Overview
The revenue of the company is derived from the sale of filament yarn, staple fiber, polyester chips,
and performance fabrics, both in domestic and export markets. Total sales in 2012 have decreased
from the previous year mainly due to drop in selling prices for all products during the year. Though
the sales volumes increased with respect to fiber and filament yarn, the price drop on account of
declining polyester chain margins has caused drop in sales revenue. The rupiah weakened during the
year and closed at Rp 9,670/US$ as of 31st December 2012, compared to Rp 9,068/US$ in 2011.
Pursuant to the Indonesian accounting standards 10 (PSAK 10), the Company had changed the
reporting currency from IDR to US$ with effect from 1st January 2012 and had accordingly published
the financial statements in US Dollar. Consequently the assets and liabilities of the Company was
recalculated and restated wherever necessitated.
Results of Operations
In 2012, net sales revenue was US$599.33 million, as compared to US$635.53 million in 2011. The
decline in net sales in 2012 was primarily on account of drop in in the selling prices for all products
during the year, despite increased volume of sales. The drop in selling prices was on account of
significant reduction in polyester chain margins triggered by falling PTA prices and margins. Export
sales were US$101.79 million or 16.98% of the net sales, and domestic sales were US$497.54 million
accounting for 83.04% of the net sales. Other operational revenue was US$1.20 million, realized
through the sale of indirect materials.
Gross Profit/ (Loss)
The Company incurred a Gross loss of US$5.98 million in 2012, as compared to a profit of US$13.88
million in 2011. This loss was mainly due to significant drop is price realization and margins for all
products during the year caused by weak market conditions coupled with falling polyester chain
margins as explained in the foregoing paragraphs.
Operating Profit / (Loss)
The operations of the company had, therefore resulted in an operating loss in 2012 at US$17.53
million compared to US$19.86 million in 2011. The operating loss was after considering the foreign
exchange gain of US$11.82 million in 2012 and a loss of US$2.16 million in 2011. Selling and General
Administrative overhead in the year 2012 was US$31.89 million as compared to US$32.45 million in
2011. The decrease in the selling and administrative overhead was mainly due to reduction in export
sales volume during the year 2012.
Net Income
The Company incurred net loss of US$32.12 million in 2012, as compared to a net loss of US$8.84
million in 2011. However, the Company posted an EBITDA of US$36.84 million in 2012, compared to
an EBITDA of US$77.85 million in 2011.
Annual Report 2012
19
Business Risks
The buoyancy and high profit margin prevailed in 2011 for the polyester products took a downward
trend in 2012 as PTA margin and the price of cotton crashed drastically. The volatility in the price of
raw materials Paraxylene and MEG and the price of PTA pose uncertainty with regard to the selling
price of polyester products. The envisaged expansion of polyester products in Indonesia has been
put on hold with uncertainty in the market condition. The increase volume of imports of polyester
filament yarn into Indonesia is putting pressure on the domestic prices as China and India are
dumping their production in Indonesia. Currently the crude oil price (WTI Crude) is hovering above
US$100/barrel. While pricing typically trends with oil prices, in recent months the price for PX is
tracking more to industry supply/demand. PX supply has been balanced to tight during the year 2012
and forecast to remain tighter during first semester of 2013. The Company is still depending on prefinancing arrangements, in addition to the working capital facility provided by the majority owner,
for the procurement of raw materials and in the absence of a conventional source of working capital
through normal banking channels. A formal working capital loan through a bank will be possible only
when the secured debt is restructured.
Debt Restructuring
The secured debt restructuring has not yet been completed, as the Company still awaits a response
from the PPA. Damiano Investments BV, the majority shareholders is also the majority holders of
secured debt, other than the PPA portion. Damiano Investments BV continued to provide working
capital loans and a Letter of Credit facility for the procurement of raw materials. This has helped the
Company to maintain optimum capacity utilization of the Companys production facilities.
In view of its tight working capital position and non-completion of secured debt restructuring, in
January 2012, Asia Pacific Fibers (APF) sought and received the approval of its unsecured creditors
for extension of the principal repayment schedule by 3 years and accordingly the first installment
will be due on 15th February 2015.
Corporate Governance
The Company has complied with the various statutory requirements of Indonesian Corporate Law,
Capital Market Law, and Stock Exchange Regulations.
The Board of Commissioners is represented by eminent people in the field of Finance, Economics,
and Law, in addition to the majority shareholders representatives. The Board of Commissioners
meets on a quarterly basis to review the operations of Board of Directors and the Company.
The Board of Directors of the Company meets frequently to review the operations of the Company
and to discuss and finalize important issues.
The Companys Internal Audit Department is headed by Mr. Yohanes Baptis Galuh Adjar
Pamungkas, ably assisted by experienced staff members. Internal audits on various functions are
conducted concurrently and the audit reports are being reviewed by the Independent Commissioner
and the Board of Directors periodically to ensure remedial actions.
The Company has a Corporate Secretarial Department headed by Mr. Tunaryo, and assisted by
experienced staff in the field of finance and legal affairs.
Annual Report 2012
20
The Company has been disclosing material information to the shareholders, stakeholders, and the
public. The Company will continue to strive to bring more transparency and fairness in its reporting
to its shareholders, stakeholders, and the public.
Corporate Social Responsibility (CSR)
The Company has been continuosly and consistently participating in the community development
programme through its Corporate Social Responsibility Programmes (CSR) over the past several
years as a part of its commitment to create a value for society. APF has been actively involved, as a
part of its social obligation to create a better community and environment in and around its
operational facilities. APFs major intiatives are in the field of education, health, environmental
control, civic amenities, infrastructure and development of vocational skills. APF has been carrying
out these CSR activities on a more channelised and focusssed manner through Yayasan Asia Pacific
Fibre. Some of the major ongoing activities and initiatives are given below:
Education Programmes:
a) Construction of elementary school building in the Blendung Village, Klari, Karawang
district.
b) Distribution of scholarships to students in Karawang and Kaliwungu region.
Health care programme:
a) Providing free medical treatment and medicines to the needy people in Sumberejo and
Nolokerto, Kaliwungu, Kendal
b) Construction of building to house the primary health centre for in patients at Klari,
Karawang
Religious and Cultural activities:
a) Construction of boarding school for religious studies, prayer halls and facilities at
Karawang and Kaliwungu.
b) Actively supporting religious and cultural activities in the region to improve social
harmony.
Environmental aspects:
a) Go Green movement in coordination with the University of Jenderal Sudirman
Purwokerto.
b) Planting of teakwood trees in Kaliwung region.
Humanatarian Relief:
a) Renovation/reconstruction of flood effected schools Mangkang Kulon, Semarang.
b) Relief assistance to disaster effected people in Megelang and Padang.
Social and Economic empowerment:
a) Financial assitance to small scale/cottage industries in the region
b) Promotion of fiber waste processing units in the region to provide self employment to
local people.
Annual Report 2012
21
Corporate Information
Date of Incorporation
February 15th, 1984
Listing on the Indonesia Stock Exchange
1.
2.
3.
4.
5.
6.
7.
8.
9.
Public Offering in February 1991

Partial Listing of 24,000,000,000 shares on 12 March 1991 on the Jakarta and Surabaya Stock
Exchanges.
Company Listing in January 1992
Company listed 68,000,000 shares on 3 January 1992 on the Jakarta and Surabaya Stock
Exchanges. The Companys total number of listed shares was 92,000,000.
Rights Issue Offering in October 1993
Between November 1, 1993 and January 3, 1994, the Company launched the first Rights Issue
Offering of 184,000,000 shares. After the rights issued, the number of issued shared shares of
the company totaled to 276,000,000.
Stock Splits in March 1995
With the stock splits on 27 March 1995 respectively, a total of 552,000,000.
Bonus issue and dividend shares in April 1995
On 12 April 1995 and 17 April 1995, respectively, a total of 552,000,000 bonus and dividend
share were listed on Jakarta and Surabaya Stock Exchanges. The total number of listed on both
Jakarta and Surabaya Stock Exchanges amounted to 1,104,000,000.
Rights Issue Offering II in June 1996
With the second Right Issue Offering on 10 June 1996, 1,104,000,000 shares were listed on
Jakarta and Surabaya Stock Exchanges, which gives a total of 2,208,000,000 shares listed on
the Stock Exchange Houses.
Rights Issue Offering III in December 1997
The third Rights Issue Offering on 24 December 1997 launched a sum of 2,185,920,000 shares
on Jakarta and Surabaya Stock Exchanges. Thus, after the completion of rights Issue III, the
Companys total number of listed shares is 4,393,920,000.
Debt to Equity Swap in September 2006
APF has received approval from Department of Justice and Human Right for the issue of
43,144,238,750 shares to its unsecured creditor as a part of debt to equity swap as approved
by Jakarta Commercial Court. Out of that as on 31st December 2006, APF has allotted
36,093,831,290 shares to unsecured creditors who have made their claim with the Company.
APF has also received approval from Department of Justice and Human Right for the
40,340,241,250 shares to be issued to its secured creditors as per Secured Debt Restructure
Proposal (SDRP). APF has not allotted any shares so far as of 31st December 2007.
Reverse Stock in February 2008
The Company has amended its Articles of Association in connection with the reverse stock split
with ratio 20:1. And based on notarial deed of Sutjipto SH No. 91 dates February 21, 2008
Annual Report 2012
22
10.
11.
12.
about the changes of Articles of Association, the authorized capital of the Company amounts
to Rp 16,000,000,000,000 consisting of 12,357,255,040 shares. The deed was approved by
Minister of Justice and Human Rights in its decision letter No. AHU-10588.AH.01.02 Year 2008
dated March 3, 2008.
The Company obtained the approval of the shareholders of the Company in the Extra Ordinary
General Meeting of Shareholders held on 24th March 2009, the issuance of 5% (118,845,397
shares) of Issued and Paid-up capital of series C share without preemptive right, for providing
stock option to the Company management and employees (Management Employee Stock
Option Programme).
The Company obtained the approval for the change of name to PT Asia Pacific Fibers Tbk from
Minister of Justice on 10th November 2009 and Indonesian Investment Coordinating
Board/BKPM on 2nd December 2009.
Based on the notaries deed of Aryanti Artisari, SH, M.Kn. No 107 dated February 23, 2012, the
stockholders agreed to used their option right regarding the Management Employee Stock
Option Programme (MESOP). It was connected with the notarial deed of Sutjipto, SH No. 91
dated March 24, 2009 regarding the issuance of 118,845,397 new authorized shares series C
(5% of issued and paid-up capital) without preemptive rights at par value of Rp 40 each. The
execution price at March 5, 2012 is Rp 45 each, and the shares have been fully paid-up on
February 20, 2012 and February 21, 2012. The shares also registered in the Indonesian Stock
Exchange through announcement No. Peng-P-00032/BEI.PPR/03-2012 dated March 5, 2012
and No. Peng-P-00033/BEI.PPR/03-2012 dated March 7, 2012.
Total Structure listed on Indonesia Stock Exchange as of 31 December 2012

2,495,753,347
Capital Structure as 31 December 2012
Serie A
Authorized Capital
Nominal Value per share
Paid-up Capital
Rp 8,500,000,000,000
Rp 10,000
Rp 2,196,960,000,000
Serie C
Authorized Capital
Nominal Value per share
Paid-up Capital
Shareholders
Damiano Investment
KYOA Investment Limited
PT. Multikarsa Investama*
Public
Rp 166,968,960,000
Rp 40
Rp 91,042,293,920
51.65%
6.04%
5.26%
37.05%
* Shares transferred by PT. Multikarasa Investama to PT. Bina Prima Perdana under IBRA
restructuring. Registration with Indonesia Stock Exchange yet to be completed.
Annual Report 2012
23
Board of Commissioners
Commissioner
Commissioner
Commissioner
IndependentCommissioner
Independent Commissioner

Kamun Cheong
Robert McCarthy
Dono IskandarDjojosubroto
Timbul T. Lubis, SH, LLM
Board of Directors
President Director
Director
Director
Director
Vasudevan Ravi Shankar

Drs. Masjhud Ali, MBA
Seeniappa Jegatheesan
Companys Activities
Engaged in the production of PTA, Polymer, Polyester Fiber, Filament Yarn and Synthetic Fabrics.
Production Capacity as of 31 December 2012
Purified Therepthalic Acid (PTA)
Polyester Chips
Polyester Staple Fiber
Polyester Filament Yarn
340.000 tons/year
330.400 tons/year
198.000 tons/year
140.000 tons/year
Representative Office
The East 35th Floor, Unit 5-6-7
Jl. Lingkar Mega Kuningan Kav. E3.2 No. 1
Jakarta 12950
Tel : (62-21) 579-38555
Fax : (62-21) 579-38565
Registered Office
Desa Nolokerto
Kecamatan Kaliwungu, Kendal
Tel : (62-24) 8660272
Fax : (62-24) 8660275
Manufacturing Facilities
Plant 1:
Desa Kiara Payung,
Klari, Karawang
West Java - Indonesia
Tel : (62-267) 431971
Fax : (62-267) 431975
Annual Report 2012
24
Plant 2:
Jl. Raya Kaliwungu Km. 19
Kendal, Semarang
Central Java - Indonesia
Tel : (62-24) 8660272
Fax : (62-24) 8660275
Share Registrar
PT. Datindo Entrycom
Wisma Dinners Club Annex
Jl. Jend. Sudirman 34-35
Jakarta 10220
Registered Public Accountant
Hendrawinata, Eddy & Siddhartha
(Indonesian Member firm of Kreston International)
Intiland Tower 18th Floor
Jl. Jend. Sudirman Kav.32
Jakarta 10220, Indonesia
Tel: (62-21) 571-2000
Fax: (62-21) 570-6118
Annual Report 2012
25
REPRESENTATION LETTER
MEMBERS OF BOARD OF COMMISSIONERS AND DIRECTORS
REGARDING
RESPONSIBILITY FOR ANNUAL REPORT 2012
PT ASIA PACIFIC FIBERS Tbk.
We, the undersigned, certify that all the information in the Annual Report of PT Asia Pacific Fibers
Tbk. 2012, is complete and we are fully responsible for the accuracy of the contents.
Such statement was made correctly.
Jakarta, 23 April 2013

Komisaris Utama

Direktur Utama
Kamun Cheong
Komisaris
Drs. Masjhud Ali MBA

Direktur

Komisaris
Seeniappa Jegatheesan
Direktur
Robert McCarthy
Komisaris

Direktur
Annual Report 2012
26
Timbul Thomas Lubis, SH LLM

Komisaris Independen
Dono Iskandar Djojosubroto

Komisaris Independen
Annual Report 2012
27
Consolidated Financial Statements and

Independent Auditors Report
PT Asia Pacific Fibers Tbk
And Its Subsidiaries
December 31, 2012, December 31, 2011
and January 1, 2011
CONTENTS
Board of Directors Statement

Independent Auditors Report
Page
Consolidated Financial Statements
Consolidated Statements of Financial Position
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Schedule
Supplementary Financial Information
16
PT. Asia
Pacific Fibers Tbk.
The EASI 35'h Floor Unit 5-6-7

Jl. DR. lde Anak Agung Cde Agung
Kav. E3.2 No. 1
Jakarta 12950 - INDONESIA
Phone : +6221 57938555
ASIA PACIFIC FIBERS
Fax.
: +62
E-mail
2'l 57938565
info@apf.co.id
BOARD OF DIRECTORS STATEMENT

REGARDING
THE RESPONSIBILITY FOR CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 3I,aOIa,DECEMBER 3I,2OII AI\D JANUARY I,2OII
AI\D FoR THE YEARS ENDED DECEMBER 31, 2012 AI\D 20tt
PT ASIA PACIFIC FIBERS TbK AND ITS SUBSIDIARIES
We, the undersigned
1.
Name
Vasudevan Ravishankar
Office address
Residential address
As stated in ID
The East 35ft floor Unit 5-6-7

Jl. Lingkar Mega Kuningan Block E3-Z Kav. I
Jakarta12950
Jl. Jambu No. 30 RT 005/002
Gondangdia - Menteng
Jakarta Pusat
2.
Telephone number
021-s7938ss5
Title
President Director
Name
Peter Yinzenz Merkle

The East 35ft floor lJntt 5-6-7
Jl. Lingkar Mega Kuningan Block E3-2 Kav.
Offrce address
Residential address
As stated in ID
Telephone number
021-579385ss
Title
Director
Declare that
1.
2.
Jakarta 12950
Ap arteme nt P laza S enayan
Jl. Tinju No. I Pintu Satu Senayan
Jakarta
W-e areresponsible
for the preparation and presentation ofthe consolidated financial statements ofpT Asia pacific
Fibers Tbk and its Subsidiaries;
The corsolidated financial statements of PT Asia Pacific Fibers Tbk and its Subsidiaries have been prepared
and
presented in accordance with the Indonesian Financial Accounting Standards;

All information in the consolidated financial statements ofPT Asia Pacidc Fibers Tbk and its Subsidiaries
have been disclosed in a complete and truthfrl manner;
3. a.
b. The consolidated financial statement ofPT Asia Pacific Fibers Tbk and its Subsidiaries clo not contain any
incorrect information or material fact, nor do they omit infomration or material fact;
4' We are responsible for PT Asia Pacific Fibers Tbk and its Subsidiaries' intemal controisystem.
Thus this statement is made
trutbirlly.
19,2013
Director
,ru.ft'/lr
Peter Yinzerw Merkle
Registered Office: Jl. Raya Kaliwungu Km.19, Nolokerto Kaliwungu Kendal 513372 CentralJava - INDONESIA
Phone: +62 24 8660272 Fax.: +62 248660275
fiENDRAWI NATA
TDDYA SIDDHARTA
Kreston lnternational
A global network of independent accounting firms
Registered Public Accountants
No. :
044a/02|ISS/IV13
INDEPENDENT AUDITORS' REPORT
The Stockholders, Directors, and Commissioners

PT ASIA PACIFIC FIBERS TbK
We have audited the accompanying consolidated statements of financial position of PT Asia Pacific Fibers
Tbk (the "Company") and its Subsidiaries as of December 31, 2012, December 31, 20ll and
January l,20ll, and the related consolidated statements of comprehensive income, consolidated statements
of changes in equity and consolidated statements of cash flows for the years ended December 31,2012 and.
2011. These consolidated financial statements are theresponsibility of theCompany's management. Our
responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audits in accordance with auditing standards established by the Indonbsian Institute of
Certified Public Accountants. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the consolidated financial position of PT Asia Pacific Fibers Tbk and its Subsidiaries as of
December 3I, 2012, December 3I, 20ll and January I, 2011, and the consolidated results of their
operations and their cash flows for the years ended December 3I, 2012 and 2011, in conformity with
Indonesian Financial Accounting Standards.
As disclosed in Note 4 to the consolidated financial statements, commencing January I,zIl2,the Company
changed its reporting cuffency from Indonesian Rupiah to United States Dollars by adopting Financial
Accounting Standard No. 10 (Revised 2010) "The Effects of Changes in Foreign Exchange Rate". As a
result, the consolidated statements of financial position as of December 31,2011 and January 1,2011 and
the related consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year ended December 31,2011, which had been previously
presented in Indonesian Rupiah, have been re-measured to United States Dollar.
As disclosed in Note 55 to the consolidated financial statements, the Company has made adjustments on the
balance of property, plant and equipments and beginning balance of accumulated deficit stated in the
consolidated statements of financial position which the previously were reported in the consolidated
financial statements for the year ended December 3I, 2011 and January 1,2011. As a result, the 20ll
consolidated financial statements, were previously issued, have been restated. In our opinion, such
adjustments are appropriate and have been properly applied. In addition, as disclosed in Note 56 to the
consolidated financial statements, certain accounts in the consolidated financial statements for the years
ended December 31,2011and January l,20ll have been reclassified to confirms with the presentation of
the consolidated financial statements for the year ended December 31, 2012 which are in accordance with
the Capital Market and Financial Institution Supervisory Agency (BAPEPAM-LK)'s Regulation
No. VItr.G.7, enclosed in the decision letter No. KEP-34718L12012.
License: 1095/KM
.1,/
ZOLL
Ariobimo Sentral 3rd floor

Jl. H.R. Rasuna Said Blok X-2 Kav. 5
Jakarta l-2950. lndonesip
Tel.
: 62-2L 5290 091-8
Fax. : 62-2L 5290 0917

e-nra
: hes-ku n
nga n@kreston-i ndonesia.co. id
License:
tZtz/
V\M.I/ 20
tL
lntiland Tower 18tn floor

Jl. Jend. $udirman Kav. 32
Jakarta LA22A. lndonesla
Tel.: 62-21 571 2000
Fax.: 62-2L57A 6LL8, 571 1818
e-ma i I : hes-sud i rma n@kreston-i ndon e$ia.co. id
www. kreston-l
donesia.co. id
License : L22O / t\M ^V 2A3,1
Kreston Building
Palang [Vlerah No. 40
Medan 7AYJ" lndonesia
.,11"
Tel.: 62-61 455 7925, 4.15 7295

Fax": 62-61 451 3159
e-mE i I : hes-meda n@kreston-i ndonesia.co.id
Kreston lnternational
A global network of independent accounting firms
+{ENDRAWINATA
f DDYA SIDDHARTA
Page 2
The accompanying consolidated financial statements have been prepared assuming the Company and its
Subsidiaries will continue as a going concern. As disclosed in Note 2 to the consolidated financial
statements, as of December 31, 2012, December 31, 2011 and January l, 2011, the Company and its
Subsidiaries had capital deficiency of US$ 797,838,849, US$ 766,263,067 and US$ 773,804,972,
respectively, while the current liabilities exceeded its total of the assets by US$ 765,339,239,
US$ 714,783,22I, and US$ 690,782,523, respectively. The Company and its Subsidiaries' current liabilities
as of December 31, 2012 of US$ 1,000,263,703 or 86Vo of total current liabilities represent the secured
debts. As of the date of this report, one of the Company's secured creditors is PT Perusahaan Pengelola
Asset (PPA) (288o) has not yet given its approval on the restructuring plan proposed by the Company.
However, Damiano Investments BV., Netherland, a majority shareholder of the Company
(51.65Vo ownership) and majority secured debt holder (66Vo) provided working capital loan facility totaling
US$ 17,340,000 and letter of credit facility of US$ 78,752,462 for raw material procurement. Damiano
Investments BV., Netherland, is still provides the requisite funds for the Company's expenses in subsequent
year through its Third Loan Agreement. The Company's management also continues to exert effort and
expects to obtain the resolution of the secured debt restructuring in order for the Company to obtain working
capital from banks. The consolidated financial statements do not include adjustments that might result from
the outcome of this uncertainty.
Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements of
PT Asia Pacific Fibers Tbk and its Subsidiaries as of December 31, 2012, December 3I, 2011 and
January 1,2011 and for the years ended December 31,2012 and20ll, taken as whole. The supplementary
financial information of PT Asia Pacific Fibers Tbk (Parent Company only) as of December 31, 2012,
December 31, 20ll and January 1,2011, and for the years ended December 31, 2Ol2 and 20ll in schedule
I to schedule 6 is presented for the purpose of additional analysis and is not a required part of the basic
consolidated financial statements in accordance with Indonesian Financial Accounting Standards such
supplementary financial information has been subjected to the auditing procedures applied in the audit of the
basic consolidated financial statements and, in our opinion, is fairly stated, in all material respects, in
relation to the basic consolidated financial statements, taken as whole.
HENDRAWINATA, EDDY & SIDDHARTA
Iskarim
Supardjo
License No. AP. 0336
March 18,2013
The accompanying consolidated financial statements are intended to present the consolidated financial positions, results
of operations, and consolidated cash flows in accordance with accounting principles and practices generally accepted in
Indonesia and not that of any other jurisdictions. The standards, procedures and practices to audit such consolidated
financial statements are those generally accepted and applied in Indonesia.
PT ASIA PACIFIC FIBERS Tbk

AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2012, December 31, 2011 and January 1, 2011
Notes
December 31,
2012
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade receivables, net after
allowance for impairment of
US$ 15,657,945 in 2012 and 2011
and US$ 6,839,009 in 2010
Third parties
Related parties
Other receivables, net after
allowance for impairment of
US$ 36,721,575 in 2012 and 2011
and US$ 56,805,405 in 2010
Third parties
Other current financial assets
Inventories
Purchase advances
Prepaid taxes
Prepaid expenses
3g,i,6
9,793,989
3,438,164
9,775,651
3h,i,7
3h,i,7
57,988,028
27,789,291
50,095,415
29,634,147
46,948,272
29,887,938
3h,i,8
3h,i,9
3j,10
11
3t,29a
3k,12
3,300,907
7,720,808
79,954,633
34,605,192
14,786,048
1,101,627
2,529,473
6,067,345
87,677,359
37,846,870
13,202,393
1,169,786
492,869
3,055,625
51,397,186
32,373,354
14,070,762
894,164
237,040,523
231,660,952
188,895,821
3h,i,14
3h,i,15
32,474,040
1,113,711
34,996,344
1,140,893
47,392,149
1,905,194
3l,m,n,16
3o,17
3t,29d
129,394,646
12,750
3,216,621
184,837,123
304,460,819
14,570,331
Total NonCurrent Assets
166,211,768
220,974,360
368,328,493
TOTAL ASSETS
403,252,291
452,635,312
557,224,314
Total Current Assets

NONCURRENT ASSETS
Non-trade receivables from related
parties, net after allowance for
impairment of US$ 111,962,653
in 2012 and 2011, and
US$ 5,551,941 in 2010
Other non-current financial assets
Property, plant and equipment, net
after accumulated depreciation of
US$ 1,658,522,816 in 2012,
US$ 1,588,852,556 in 2011, and
US$ 1,895,950,101 in 2010
Intangible assets
Deferred tax assets
The accompanying notes to consolidated financial statements are an integral part

of the consolidated financial statements
1

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Continued)
December 31,
2012
Notes
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$
LIABILITIES AND EQUITY

(DEFICIENCY)
CURRENT LIABILITIES
Trade payables
Third parties
Related parties
Accrued expenses
Taxes payable
Bank Loans
Secured Debts
Short term loans
Notes payable
Current portion of long-term liabilities :
Working capital loans
Credit financing payables
Finance Lease Liabilities
Other short-term financial liabilities
3q,18
3q,18
3q,19
3t,29b
3q,20
3q,21
3q,22
3q,23
22,942,334
7,150
43,319,170
1,751,095
78,752,462
1,000,263,703
23,798,883
45,606,299
1,937,308
70,339,624
1,012,928,220
24,811,511
77,375,906
2,523,059
48,046,644
1,012,905,635
36,054,041
20,259,235
3q,25
3p,26
3p,27
3q
17,340,000
64,651
4,150,965
8,500,000
57,035
4,251,161
4,333,000
52,884
4,300,981
17,343,941
1,168,591,530
1,167,418,530
1,248,006,837
22,169,338
55,535
10,274,737
21,945,011
14,500,000
48,524
8,561,749
6,424,565
21,077,129
36,277,862
77,437
8,189,736
17,400,285
32,499,610
51,479,849
83,022,449
Total Current Liabilities

NONCURRENT LIABILITIES
Borrowing from Other Financial
Institutions :
Unsecured Debts and Notes Payable
Long-term Employee Benefits Liabilities
Deferred tax liabilities
3q,24
3q,25
3p,26
3s,28
3t,29d
Total NonCurrent Liabilities

2

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Continued)
December 31,
2012
Notes
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$

(DEFICIENCY)
EQUITY (DEFICIENCY)
Share Capital
Authorized 12,357,255,040
shares at Rp 10,000 par value
per Series A, Rp 1,000 par
value per per Series B and
Rp 40 par value per Series C
in 2012, 2011 and 2010
Issued and paid up 219,696,000
Series A and 2,276,057,347
Series C in 2012 and
2,157,211,950 Series C
in 2011 and 2010
Additional paid-in capital
Other components of equity
Retained earnings (accumulated deficit) :
Appropriated
Unappropriated
635,689,316
624,344,507
(21,339)
635,165,191
624,325,603
(21,339)
635,165,191
624,325,603
(21,339)
2,345,301
(2,060,196,634)
2,345,301
(2,028,077,823)
2,345,301
(2,019,125,048)
(797,838,849)
(766,263,067)
(757,310,292)
(16,494,680)
Total Equity (Deficiency)
(797,838,849)
(766,263,067)
(773,804,972)
TOTAL LIABILITIES AND

EQUITY (DEFICIENCY)
403,252,291
452,635,312
557,224,314
Equity attributable to the owners

of the Company
Non-controlling interests
30
3u,31
1c
32
33

3

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the years ended December 31, 2012 and 2011
Notes
2012
US$
Continuing Operations :
REVENUES
Net sales
Other operating revenues
Total revenues
COST OF GOODS SOLD
3v,37
3v,38
599,330,876
1,200,875
600,531,751
635,534,718
533,044
636,067,762
3v,39
(606,514,179)
(622,188,564)
GROSS PROFIT (LOSS)
(5,982,428)
Selling expenses
General and administrative expenses
Insurance claim settlement, net
Gain (loss) on foreign exchange transactions, net
Miscellaneous income, net
3v,41
3v,42
3v,36
3c
3v,44
LOSS FROM OPERATIONS

Finance costs
43
LOSS BEFORE INCOME TAX

TAX INCOME (EXPENSE)
Current period
Deferred
3t
29e
29e
Total Tax Income

TOTAL LOSS FOR THE YEAR FROM
CONTINUING OPERATIONS
Discountinued Operations :
Loss from discontinued operations
Gain from disposal of Subsidiary
3b,45
3b,45
TOTAL PROFIT FOR THE YEAR

FROM DISCOUNTINUED OPERATIONS
TOTAL LOSS FOR THE YEAR
(13,725,399)
(18,726,822 )
86,182
(2,158,190)
782,045
(17,532,078)
(33,742,184)
(23,514,506)
(19,862,986)
(18,245,491)
(16,315,341)
(41,759,997)
(36,178,327)
9,641,186
9,892,352
9,641,186
9,892,352
(32,118,811 )
(26,285,975)
(6,396,381)
23,841,586
17,445,205
TOTAL COMPREHENSIVE LOSS
13,879,198
(14,052,194)
(17,843,646 )
1,667,691
11,816,164
879,907
(32,118,811 )
OTHER COMPREHENSIVE INCOME, NET

AFTER TAX
2011
(As Restated)
US$
(32,118,811)
(8,840,770)
(8,840,770)

4

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Continued)
Notes
2012
2011
(As Restated)
US$
US$
TOTAL NET LOSS ATTRIBUTABLE TO :
Owners of the Company
Total Net Loss For The Year
ATTRIBUTABLE TO :
Total Comprehensive Loss
EARNING (LOSS) PER SHARES :
Basic
Diluted
3w
34a
34b
(32,118,811)
(8,952,775)
112,005
(32,118,811)
(8,840,770)
(32,118,811)
(8,952,775)
112,005
(32,118,811)
(8,840,770)
(0.01 )
(0.01 )
(0.00)
(0.00)

5

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Other Component
of Equity
Retained earnings
(accumulated deficit)
Total equity
(deficiency)
Difference on
attributable
restructuring among
to the owners
under common
of the
Additional
Notes Capital stock paid-in capital control companies Appropriated Unappropriated
Company
US$
US$
US$
US$
US$
US$
Balance as of January 1, 2011
(As Restated)
Reclassified due to lost of controls
635,165,191
33
624,325,603
(21,339)
2,345,301
Total loss for the year
Other comprehensive income, net
Balance as of December 31, 2011

(As Restated)
Issuance of share capital
30,31
635,165,191
624,325,603
524,125
18,904
(21,339)
2,345,301
635,689,316
624,344,507
(21,339)
2,345,301
(2,019,125,048)
(8,952,775)
(2,028,077,823)
(32,118,811)
(2,060,196,634)

6
(757,310,292)
(8,952,775)
(766,263,067)
543,029
(32,118,811)
(797,838,849)
NonControlling
Interest
US$
Total equity
(deficiency)
US$
(16,494,680)
(773,804,972)
16,382,675
16,382,675
112,005
(8,840,770)
(766,263,067)
543,029
(32,118,811)
(797,838,849)

CONSOLIDATED STATEMENTS OF CASH FLOWS
Notes
2012
US$
2011
(As Restated)
US$
CASH FLOWS FROM OPERATING ACTIVITIES

Receipt from customers
Payment to suppliers
Payment of salaries
Other operating cash payments, net
634,181,470
(107,539,191)
(16,579,363)
(61,251,557)
646,901,210
(121,707,320)
(15,571,185)
(38,847,286)
Cash provided by operations

Interest received
Interest expense and bank charges paid
Cash receipt from insurance claim settlement
Payment of income tax
Refund of income tax
448,811,359
31,754
(17,979,160)
1,667,691
(4,911,388)
5,940,924
470,775,419
21,064
(15,781,720)
86,182
(11,407,441)
7,119,722
433,561,180
450,813,226
36
29
29
Net Cash Provided By Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES
Payment to acquire property, plant and equipment
Increase of other current financial assets
Payment of non-trade receivables from related parties
16
9
14
Net Cash Used In Investing Activities

CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of share capitals
Payment of bank loans
Receipt of working capital loans
Payment of working capital loans
Receipt of credit financing payables
Payment of credit financing payables
30
20
25
25
27
27
Net Cash Used In Financing Activities
(13,295,299)
(521,237)
(2,224,168)
(9,005,981)
(233,946)
(2,825,916)
(16,040,704)
(12,065,843)
591,434
(404,619,673)
12,940,000
(18,600,000)
83,316
(68,689)
(428,449,261)
8,500,000
(26,110,862)
35,069
(59,831)
(409,673,612)
(446,084,885)
NET INCREASE (DECREASE) IN CASH

AND CASH EQUIVALENTS
7,846,864
(7,337,502 )
EFFECT OF FOREIGN EXCHANGE RATE
(1,491,039)
1,035,533
BALANCE OF UNCONSOLIDATED SUBSIDIARY
45
CASH AND CASH EQUIVALENTS

AT BEGINNING OF YEAR
3,438,164
9,775,651

AT END OF YEAR
9,793,989
3,438,164

7
(35,518)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2012 and 2011
1. GENERAL
a. Establishment and General Information
PT Asia Pacific Fibers Tbk (the Company) was established within the framework of the
Domestic Capital Investment Law No. 6 year 1968, as amended by Law No. 12 year 1970 based
on notarial deed No. 22 dated February 15, 1984 of Januar Tirtaamidjaja, S.H., notary in Jakarta.
The above laws were subsequently amended by the Limited Liability Company Law of Republic
of Indonesia No. 40 year 2007 dated August 16, 2007. The deed of establishment was approved by
the Minister of Justice of the Republic of Indonesia based on decision letter No.
C26107.HT.01.01.TH.84 dated October 26, 1984 and was published in Supplement No. 3247 of
State Gazette No. 72 dated September 7, 1990.
The Article of Association has been amended based on notarial deed No. 92 dated March 24, 2009
of Sutjipto, S.H., notary in Jakarta to adjust the Companys Article of Association with BapepamLK No. IX.J.1 dated May 14, 2008 concerning the Principles of Association of Public Offering of
Conduct Equity Securities and Public Companies. The deed of establishment was approved by the
Minister of Justice of the Republic of Indonesia based on decision letter No. AHU0052618.AH.01.09.Tahun 2009 dated August 14, 2009.
The Articles of Association have been amended several times. The latest amendment of the
Companys Articles of Association was based on notarial deed No. 50 dated September 10, 2009
of Sutjipto, S.H., notary public in Jakarta, concerning the change in the Companys name from
PT Polysindo Eka Perkasa Tbk to PT Asia Pacific Fibers Tbk. The deed was approved by the
Minister of Law and Human Rights of the Republic Indonesia based on his decision letter
No. AHU-54294.AH.01.02.Tahun 2009 dated November 10, 2009 and the publishment in
Supplement No. 21449 of State Gazette No. 77 dated September 24, 2010.
The Articles of Association have been amended several times. The latest amendment of the
Companys Articles of Association was based on the notarial deed No. 107 dated February 23,
2012 of Aryanti Artisari, S.H., M.Kn., notary in Jakarta, concerning the implemented the
Management Employee Stock Option Programme (MESOP) based on the Capital Market and
Financial Institution Supervisory Agency (BAPEPAM-LK)s Regulation No. IX.D.4. The deed
was approved by the Minister of Justice and Human Rights of the Republic Indonesia based on his
decision letter No. AHU-0018443.AH.01.09.Tahun 2012 dated February 29, 2012.
On February 4, 2011, the Company obtains the approval from the Chairman of the Capital
Investment Coordinating Board (BKPM) in his letter No. 2/B/II/PMDN/2011 with regard to the
cancellation of approval from the Chairman of the Capital Investment Coordinating Board
(BKPM) in his letter No. 249/II/PMDN.1997 dated December 2, 1997.
Further, the Company has received the approval of the Chairman of the Capital Investment
Coordinating Board (BKPM) for the expansion of the Fibre capacity in Karawang side through the
approval letter No. 2/B/II/PMDN/2011 dated February 24, 2011. This project has started in the
second quarter of 2012.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. G E N E R A L (Continued)
a. Establishment and General Information (Continued)
In accordance with Article 3 of the Companys Articles of Association, the scope of the
Companys activities are mainly to engage in the manufacturing of chemical and synthetic fiber,
weaving and knitting, and other activities related to the textile industry. The Company is
domiciled in Kendal, Central Java with its plants located in Kendal, Central Java and Karawang,
West Java. The Companys representative office is located at The East Building, 35th Floor,
Jl. Lingkar Mega Kuningan Kav. E-3 No. 1, Jakarta. The Company started its commercial
operations in 1986. The Companys products are marketed both domestically and internationally,
including Europe, United States of America, Asia, Australia and the Middle East.
The Company has many ongoing social activities in the local environs of its two plant location in
Semarang and Karawang which the purpose of this activity is to improve the livelihood of the
surrounding communities. In order to carry out these programes more effectively, the Company
has established a foundation, Yayasan Asia Pacific Fibre on January 15, 2010. The deed was
approved by the Minister of Justice and Human Rights of the Republic Indonesia based on
decision letter No. AHU-960.AH.01.04.Tahun 2010 dated March 15, 2010.
The Companys immediate parent company is Damiano Investments BV., incorporated in
Netherland, and its ultimate parent company is ADM Capital and Spinnaker Capital Group,
incorporated and domiciled in Hong Kong and United Kingdom.
b. Public Offering of Shares, Notes Payable of the Company and its Subsidiaries
On December 14, 1990, the Company offered 12,000,000 shares to the public through the
Jakarta and Surabaya Stock Exchanges, now known as Indonesian Stock Exchange.
On October 8, 1993, the Company obtained the notice of effectivity from the Chairman of the
Capital Market Supervisory Agency (BAPEPAM), in his letter No. S-1738/PM/1993, for its
limited offering of 184,000,000 shares through rights issue with preemptive rights to
stockholders. These shares were listed in the Jakarta and Surabaya Stock Exchanges on
November 1, 1993.
On December 15, 1994, the Company obtained the notice of effectivity from the Chairman of
BAPEPAM, in his decision letter No. S-2027/PM/1994, for the change of par value from
Rp 1,000 to Rp 500 per share.
On May 20, 1996, the Company obtained the notice of effectivity from the Chairman of
BAPEPAM, in his decision letter No. S-778/PM/1996, for its offering of 1,104,000,000 shares
through rights issue II with preemptive rights to stockholders. These shares were listed in the
Jakarta and Surabaya Stock Exchanges on June 10, 1996.

1. GENERAL (Continued)
b. Public Offering of Shares, Notes Payable of the Company and its Subsidiaries (Continued)
On December 11, 1997, the Company obtained the notice of effectivity from the Chairman of
BAPEPAM, in his decision leter No. S-2844/PM/1997, for its offering of 2,185,920,000
shares through rights issue III with preemptive rights to stockholders. These shares were listed
in the Jakarta and Surabaya Stock Exchanges on January 5, 1998.
In 1994, the Company issued US$ 125,000,000 Unsecured Senior Notes which are listed in
Luxembourg. In 1996, the Company offered to the holders of the said unsecured notes to
exchange their notes with US$ 125,000,000 Guaranteed Senior Notes issued by PIFC with the
Company as the guarantor. These notes were listed in the Luxembourg Stock Exchange.
In 1996, PIFC, with the Company as a guarantor, also issued US$ 50,000,000 Secured
Floating Rate Notes and US$ 260,000,000 Guaranteed Secured Notes which were listed in the
Luxembourg Stock Exchange.
In 1997, PIFC, with the Company as a guarantor, issued US$ 250,000,000 Guaranteed Secured
Notes which were listed in the Luxembourg Stock Exchange.
Prior to January 2000, the above notes issued by PIFC were delisted from Luxembourg Stock
Exchange.
Beginning December 2004, all of the Companys outstanding shares totaling 4,393,920,000
shares were suspended regarding the the bankruptcy proceeding against the Company and
delay in submitting the required consolidated financial statements. The Companys shares
were still suspended after the Company removes their bankruptcy. However, the Company
took efforts to remove its suspension which includes submitting Companys future plan of
actions. Further in July 2006, all of the Companys shares resumed trading.
In 2006, The Company converted the unsecured debt amounted to 43,144,238,750 shares as
part of the implementation of Composition Plan which have been approved and ratified by the
Commercial Court. Based on the condition issued by Indonesian Stock Exchange, the new
shares can not be traded for 1 (one) year. Further in October 2007, the new Companys shares
were traded.
Based on the Extraordinary General Stockholders Meeting (RUPSLB) held on

February 21, 2008, the stockholders approved the reverse stock split (split down) with a ratio
of 20:1 wherein 20 old shares will become 1 new share. Reverse stock splits are conducted for
the Companys shares to be more liquid and in line with the Companys performance. Due to
the changes in the Companys number of shares and par value, the Company amended its
Articles of Association and the notarial deed regarding the changes of the Companys Article
of Association had been approved by the Minister of Justice and Human Rights on
March 3, 2008.
10

b. Public Offering of Shares, Notes Payable of the Company and its Subsidiaries (Continued)
Further, based on the notarial deed of Sutjipto, S.H., No. 122 dated February 27, 2008
regarding shares purchase as the result of reverse stock split named PT Trimegah Securities
Tbk as Stand by Buyer. In addition, all shares from reverse stock were traded on
March 14, 2008.
On October 10, 2008, the Subsidiarys shares (PT Texmaco Jaya Tbk) have been delisted from
the Indonesian Stock Exchange based on its letter No. S-04741/BEI.PSR/09/2008 and
Peng-004/BEI.PSR/DEL/09-2008 due to the suspension of the trading shares and going
concern problem of the Subsidiary.
Since December 2, 2009, the Companys shares in the Indonesian Stock Exchange have been
changed with the new Companys name.
Based on the Extraordinary General Stockholders Meeting (RUPSLB) held on March 24, 2009
and based on notarial deed No. 91 dated March 24, 2009 of Sutjipto, S.H., notary in Jakarta,
the stockholders approved the issuance of 118,845,397 new authorized shares series C (5% of
issued and paid-up capital) without preemptive rights, for providing stock options to the
Companys management and employees (Management Employee Stock Option Programme /
MESOP). The notarial deed was approved by the Minister of Justice of the Republic of
Indonesia based on his decision letter No. AHU-0052619.AH.01.09.Tahun 2009 dated August
14, 2009. As per the Companys schedule that was reported to Indonesian Stock Exchange
dated March 17, 2009, its programe will be implemented at the latest period
(February 1, 2012).
Further, based on the notarial deed No. 107 dated February 23, 2012 of Aryanti Artisari, S.H.,
M.Kn., notary in Jakarta, the Management Employee Stock Option Programme / MESOP) has
been implemented with the execution price of Rp 45 each. All shares under MESOP have
been fully paid up through the Companys bank accounts dated February 20 and 21, 2012. It
has been registered in the Indonesian Stock Exchange through announcement No.
Peng-P-00032/BEI.PPR/03-2012 dated March 5, 2012 and No. Peng-P-00033/BEI.PPR/032012 dated March 7, 2012.
Based on the Extraordinary General Stockholders Meeting (RUPSLB) held on June 18, 2012
and based on the notarial deed No. 88 dated June 18, 2012 of Aryanti Artisari, S.H., M.Kn.,
notary in Jakarta, the stockholders approved the issuance of 74,872,600 new authorized shares
series C (3% of issued and paid-up capital) without preemptive rights, for providing stock
options to the Companys management and employees (Management Employee Stock Option
Programme / MESOP). Up to December 31, 2012, the Company has not issued shares under
this scheme. However, the Company has informed to Bapepam / IDX on the deferment of the
issuance of shares with letter dated December 3, 2012.
11

c. Consolidated Subsidiaries
The Company has ownership interest of more than 50%, directly or indirectly, in the following
subsidiaries :
Subsidiaries
Domicile
Commercial Percentage of
Nature of Business Operations Ownership
%
Total Assets
2012
2011
2010
US$
US$
US$
(in million) (in million) (in million)
PT Texmaco
Jaya Tbk (TJ)
Karawang
Trading, weaving,
knitting and
processing
1972
92.00
*)
*)
68
PT Texmaco Graha
Busana (TGB)
(99% owned by TJ)
Jakarta
Trading of textile
and producing
ready to wear
garments and
accessories
1994
91.08
*)
*)
19
Polysindo International
Finance Company
BV (PIFC)
Netherlands Financial services
1994
100.00
759
759
759
Polysindo (Mauritius)
Ltd. (PML)
Republic of Financial services

Mauritius
Preoperating
100.00
*) Not applicable due to PT Texmaco Jaya Tbk (TJ) and PT Texmaco Graha Busana (TGB)
deconsolidation (Note 45).
In 2001, the Company acquired 10,000 shares which represent 100% ownership in Polysindo
(Mauritius) Ltd. The shares were acquired for the amount of US$ 10,000. The difference
between the acquisition cost and the net assets of PML amounted to Rp 221,924,188
(equivalent to US$ 21,339) was recorded as difference on restructuring among companies
under common control account as part of the other component equity in the consolidated
statements of financial position.
There were no transactions between the Company and Polysindo (Maurutius) Ltd and
Polysindo International Finance Company BV during 2012, 2011 and 2010. The Company
intends to close the operation of its subsidiaries along with the restructuring of the Company.
Since April 2008, PT Texmaco Jaya Tbk (TJ) operations (Fleece division) are conducted by
the Company with tolling basis.
Since the second semester of 2004, PT Texmaco Graha Busana has halted its business
operations.
12

d. Employees, Directors and Commissioners
The members of the Companys board of commissioners and directors as of December 31,
2012, 2011 and 2010 are as follows :
2012
2011
2010
Board of Commissioners :
: Mr. Robert Clive Appleby
Independent Commissioners : Mr. Dono Iskandar
Djojosubroto
Mr. Timbul Thomas
Lubis SH
Commissioners
: Mrs. Cheong Kamun
Mr. Christopher
Robert Botsford
Mr. Robert Mc Carthy
Mr. Robert Clive Appleby

Mr. Dono Iskandar
Djojosubroto
Mr. Timbul Thomas
Lubis SH
Mr. Antonitris
Mr. Christopher
Robert Botsford
Mr. Robert Clive Appleby

Mr. Dono Iskandar
Djojosubroto
Mr. Timbul Thomas
Lubis SH
Mr. Antonitris
Mr. Christopher
Robert Botsford
Mr. Vasudevan
Ravi Shankar
Mr. Masjhud Ali
Mr. Seeniappa
Jegatheesan
Mr. Peter Vinzenz
Merkle
Mr. Vasudevan
Ravi Shankar
Mr. Masjhud Ali
Mr. Seeniappa
Jegatheesan
Mr. Peter Stanley
Grant
Mr. Peter Vinzenz
Merkle
Board of Directors :
President Director
Directors
: Mr. Vasudevan
Ravi Shankar
: Mr. Masjhud Ali
Mr. Seeniappa
Jegatheesan
Mr. Peter Vinzenz
Merkle
Mr. Antonitris, one of the Commissioners of the Company, resigned from the Board of
Commissioners based on the notarial deed of Aryanti Artisari, S.H., M.Kn. No. 87 dated June
18, 2012.
Mr. Peter Stanley Grant, one of the Directors of the Company, resigned from the Board of
Directors based on the resolution passed at the Extraordinary Shareholders Meeting held on
February 10, 2011.
Audit Committee is appointed based on BAPEPAM regulation No. IX.1.5 regarding the
forming and work guidance audit committee to comply with BAPEPAM-LK regulation Board
of Commissioners has formed Audit Committee.
The members of the Companys Audit Committee as of December 31, 2012, 2011 and 2010
are as follows :
Chairman
Member
: Mr. Timbul Thomas Lubis, S.H.

: Mr. Drs. Heroe Pramono
Mr. Djati Suara
13

d. Employees, Directors and Commissioners (Continued)
The Companys corporate secretary as of December 31, 2012, 2011 and 2010 is Mr. Tunaryo.
In February 2009, the Company formed an internal audit department based on BAPEPAM-LK
regulation. The head of internal audit is Mr. Yohanes Baptis Galuh Adjar Pamungkas.
The total number of the Companys permanent employees as of December 31, 2012, 2011 and
2010 were 3,507; 3,366 and 3,158 persons, respectively (unaudited). As of
December 31, 2012, 2011 and 2010, the Subsidiarys permanent employees were Nil, Nil and
238 persons, respectively (unaudited).
e. Presentation and Responsibility of the Consolidated Financial Statements

The consolidated financial statements were authorized by the Board of Directors on March 18,
2013.
2. GOING CONCERN, DEBT RESTRUCTURING AND ECONOMIC CONDITIONS

a. Going Concern
After a strong performance in 2011 supported by handsome commodity margins, especially PTA
margins and the substitution effects of Cotton, in 2012 saw a reversal of all these favorable
factors. PTA margins continue to decline through the year and hit the bottom by at end of the year.
Cotton prices had also dropped steeply during the year putting downward pressure on Polyester
prices, Polyesther Staple Fibers prices in particular. These factors have impacted the performance
of the Polyester Industry globally. Global economic downturns driven by European debt concerns
and the US economic concerns have severely affected the Global textile trade, and dampening the
demand outlook. Huge capacity additions in PTA, Polyester Fiber and Polyester Filament led to
lower operating rates, putting further downward pressure on polyester chain margins.
Despite the dampening market conditions, the Company operated its plant to its near full capacity
supported by the sustained demand from domestic market. The Company has also continued its
Capex investment plans and completed some of the strategically important projects during the year
2012. The expansion of fiber line has become fully operational in the year and the installation of
five (5) new texturizing machines has also been completed and commercial production also
commenced during the year. Damiano Investments BV., Netherland has been providing the
requisite funds for the above-mentioned capital expenditure through Third Loan facility.
14

2. GOING CONCERN, DEBT RESTRUCTURING AND ECONOMIC CONDITIONS (Continued)

a. Going Concern (Continued)
While the paraxylene supply position remained tight and the prices remained fairly firm, the PTA
prices continued to decline thru the year and the margins crashed and bottomed out by the end of
the year. Consequently the selling prices of PSF and PFY were under pressure during the year and
margins plummeted to the lowest levels in the second semester of the year. Hence the sales
revenue has dropped to US$ 600 million as compared to US$ 636 million for the previous year,
despite increase in volume of production and sales.
The escalation in the cost of gas had a cascading effect on the cot of production that further dented
the profitability of the Company. The cash profit also slumped to US$ 36 million from the
previous level of US$ 78 million. With the result of lower profitability cash flow position
remained tight through the year. Prudent working capital management has helped the Company to
tide over tough phase and operate the plants at near full capacity and also to meet all its
commitments without default. Damiano Investments BV., Netherland continued to support the
Company by increasing the letter of credit working capital to around US$ 84 million.
Despite tight working capital position, Company started servicing of interest to its unsecured
creditors (New Notes) effective May 2012. Interest on the third loan (CAPEX loan) and letter of
credit facility was also serviced during the year.
Polyester chain margins that bottomed out in the fourth quarter of last year are expected to stage a
recovery from second quarter of 2013 supported strong domestic demand from China. Despite
fluctuations in the price, polyester sector will grow over 6% in the next three (3) years.
Strengthening of cotton prices due to anticipated shortfall in production would help stabilizing the
polyester prices and demand during the year.
The Company with its capability to increase the volume of specialty products and cost effective
production of commodity products, will be able to face the competition and sustain its market
share besides making entry into new market segments. This will in turn enable the Company to
sustain its financial performance on a longer term.
Until March 2013, the Secured Debt Restructuring Plan (SDRP) is not approved by, particularly
by PT Perusahaan Pegelola Asset (PPA) which owned about 28% of the total secured debt as
some of the terms under the SDRP are not agreed by PPA. The Company and its majority
stockholders continue to have request PT PPA for its consent to the restructuring of its secured
debt. Upon completion of this restructuring, and the consequent reorganization of its consolidated
statement of financial position, the Company is confident of securing a formal working capital
lending from a conventional banking sources.
The major terms of the Secured Debt Restructuring Plan (SDRP) are as follows:
Proposed
Restructuring Date
July 1, 2007
15


Interest on New Notes
Interest shall be payable on the New Notes quarterly in arrears and

calculated on the outstanding principal amount of the New Notes
during the quarter at the per annum rates shown in the table below :
Yr1 Yr2 Yr3
Yr4
0.0% 2.0% 2.0% 2.0%
Amortisation
Yr6
4.0%
Yr7
4.0%
Yr8
Yr9
4.0% 4.0%
Principal repayment shall be made at the end of each 12-month period

beginning on the fourth anniversary of the Restructuring Date. The
amount payable shall be equal to the percentages of the restructured
principal amount shown in the table below:
Yr1 Yr2 Yr3 Yr4
0% 0% 0% 5.0%
Debt Restructuring
Yr5
4.0%
Yr5
17.5%
Yr6
17.5%
Yr7
Yr8
Yr9
17.5% 20.0% 22.5%
New Secured Notes will be exchanged at 10.73 Cents per US$ 1.

40.90% of the expanded equity will be allotted to the Secured
Creditors as per the Debt /Equity swap indicated in the SDRP
In addition, the Company and its Subsidiaries consolidated financial condition in 2012 showed
the following :
Total comprehensive loss amounting to US$ 32,118,811.

Negative working capital amounting to US$ 931,551,007.
Capital deficiency amounting to US$ 797,838,849.
In 2012, there was a significant improvement in the capacity utilization of Companys facilities in
Karawang and Semarang. It achieved a capacity utilization level of more than 95% in both the
facilities.
Subsidiarys Operations (PT Texmaco Jaya Tbk) :

Consequent to declaration of bankruptcy of PT Texmaco Jaya by the commercial court of Jakarta
on 19th August 2011 as per the court order No. 10/PKPU/2010/PN.NIAGA.JKT.PST Jo No:
71/PAILIT/2010/PN.NIAGA.JKT.PST, the management of the Company and enforcement of the
liquidation process was under the team of curators appointed by the Court and monitored by the
supervisory judge. Subsequently, the Curators had conducted debt verification and registration
process as per the provisions of the law and the final registered debt is as follows:
16


Subsidiarys Operations (PT Texmaco Jaya Tbk) (Continued) :
Sl No
1
2
3
Details
Preferred Creditors
Secured Creditors
Unsecured Creditors
Total
Amounts in Rupiah
15,478,161,747.06
602,914,924,862.14
1,515,354,797,944.92
2,133,747,884,554.12
No of Creditors
4
3
47
54
Subsequent to completion of debt verification, the Court had declared PT Texmaco Jaya Tbk
insolvent and ordered liquidation of the bankrupt estate vide Court Order
No 71/PAILIT/2010/PN.NIAGA.JKT.PST dated September 26, 2011.
The total receivable amount from PT Texmaco Jaya of Rp 1,106,832,761,717 was acknowledged
and registered as unsecured debt by the curators.
In the meantime, the Court has approved continued operation of its Fleece division as a going
concern with a view to maintain the value of the bankrupt assets. In accordance with the Court
approval and pursuant to the tolling agreement between the team of curators and PT Asia Pacific
Fibers Tbk, the Fleece division continued to be operated on tolling basis.
Pursuant to PSAK 10 (Revised 2010), the Company and its Subsidiaries have determined US
Dollar as its functional currency as predominant financial transaction such as Sales, Purchases,
Pricing, etc., are transacted in US Dollar currency. Hence the Company and its Subsidiaries have
chosen to prepare and present its consolidated financial statements in US Dollar currency effective
in January 2012. The consolidated financial statements for the year ended December 31, 2012 was
prepared in accordance with the guidelines provided under PSAK 10 and recalculated/ restated its
assets and liabilities wherever required.
The accompanying consolidated financial statements have been prepared on a going concern basis,
and do not include any adjustment that might result from the outcome of these uncertainties.
Related effects will be reported in the consolidated financial statements as they become known
and can be estimated. To date, the Company, in running its operations is supported through the
letter of credit facility and other working capital loans from Damiano Investments BV.,
Netherland and through the confidence and support of its suppliers and customers. Damiano
Investments BV., Netherland has also increased the bank loan facility for the procurement of raw
materials from US$ 80 million to US$ 100 million. Damiano Investments BV., Netherland has
also provided the requisite funds for the Companys capital expenses programs in 2012 and the
next year through its Third Loan facility.
17


b. Debt Restructuring
The Company has executed the restructuring agreement with the unsecured creditors as approved
by the creditors and ratified by the Court. Accordingly, the total unsecured loans after the
restructuring stands at US$ 18,670,630 plus unpaid capitalized interest until February 2012 of
US$ 3,498,708 or amounted to US$ 22,169,338. The Company has also submitted restructuring
proposal to the secured creditors (SDRP). In March 2007, the Company reissued the SDRP
proposal to all of its secured creditors, including PPA, as the earlier SDRP proposal has time
barred. However, no response has been received from PT Perusahaan Pengelola Aset (PPA) on the
proposal. The proposal has the support of Damiano Investment BV., Netherland, the majority
holder of the other secured debts of the Company.
The Company has taken all the required corporate actions towards the implementation of the
Composition Plan (Peace Plan) as approved by the unsecured creditors of the Company and
ratified by the Commercial Court. The steps involve the issuance of the new debts secured or
unsecured in exchange of the old unsecured debts and issuance of shares for the reduction of the
principal amount of debts as per the terms of the Composition Plan. The Company has reduced its
unsecured debts as per the Composition Plan and increased its share capital as additional capital
pending allotment to the creditors. The Company has appointed The Hongkong and Shanghai
Banking Corporation Limited, Hong Kong to act as its Fiscal Agent, Paying Agent and Trustees
for its new unsecured notes which are eurocleared.
In January 2012, the Company sought and got the approval of its Unsecured New Note Holders for
the extension of its maturity from February 2012 to February 2015. The details are as below:
Redemption Date
February 15, 2005

to May 15, 2012
February 15, 2015
February 15, 2016
February 15, 2017
February 15, 2018
February 15, 2019
February 15, 2020
Subject to PIK
Request
US$ 18,670,630.00
US$ 3,498,707.77
Redemption Table (Revised for PIK)

Outstanding
Redemption
Amount
Amount
US$ 18,670,630.00
US$ 22,169,337.77
US$ 21,080,870.88
US$ 17,181.236.77
US$ 13,301.602.66
US$ 9,421,968.55
US$ 4,988,101.00
US$
0.00
US$ 22,169,337.77
(US$
(US$
(US$
(US$
(US$
(US$
1,108,466.89)
3,879,634.11)
3,879,634.11)
3,879,634.11)
4,433,867.55)
4,988,101.00)
US$ 22,169,337.77
18
Redemption
%
0.00%
0.00%
5.00%
17.50%
17.50%
17.50%
20.00%
22.50%
100.00%


b. Debt Restructuring (Continued)
PT Perusahaan Pengelola Asset (PPA) announced a sale programme of Texmaco Groups assets
and shares, including that of Semarang site of the Company in December 2010. However the
programme was later cancelled and called off. PT Asia Pacific Fibers Tbk has been in active
discussion with PPA for the restructure of the Company and awaiting their response of PPA in this
regard.
c. Economic Condition
Despite slower global growth and continued uncertainty in the global financial market, Indonesias
economic growth remained strong throughout 2012. Indonesias GDP grew 6.20 percent in 2012,
slightly below 2011 is 6.50 percent due to the continuing slower growth of exports as the
slowdown in China hit demand for Indonesian commodities such as coal and palm oil. Indonesia's
resilience to the global economic slowdown and its domestic consumption continued to drive
robust economic growth and have made it a magnet for foreign investment in recent years, but the
country's first annual trade deficit in 2012 has put pressure on the rupiah currency.
While many other emerging markets in Asia are reliant on exports, more than 60 percent of
Indonesias GDP is generated by domestic consumption, shielding it from the vicissitudes of the
global economy. Indonesias growth rate of 6.23 percent last year meant that the country remained
among the worlds fastest-growing economies (the second best after that of China among G-20
members), the deceleration in the fourth quarter 2012 should provide a cautious approach for
future.
However on the other hand, Indonesia suffered its first ever-annual trade deficit in 2012 as exports
to most of its trading partners fell during the year amid the slowdown in the global economy. The
countys trade deficit reached US$1.65 billion in 2012 being the first such deficit in Indonesias
history. Exports dropped to US$190.04 billion, down by 6.61 percent from last year, much deeper
than the forecast. Imports, on the other hand surged by 8.20 percent to US$191.67 billion, were
driven by imports of intermediary goods for domestic production (73.10 percent, followed by
capital goods (19.90 percent) and consumer goods (7.00 percent). The rupiah weakened through
the year 2012 and has fallen steeply to close at Rp 9,670 per US$ 1 as compared to Rp 9,068 per
US$ 1 as at December 2011 (depreciating over 6.60% during the year).
The economic outlook for Indonesia in 2013 remains positive despite a weak global economy, but
maintaining strong investment growth is vital. The World Bank projects a marginal rise in GDP to
6.30 percent in 2013. This projection assumes that domestic consumption and investment growth
remain strong, while improving growth in Indonesias major trading partners supports a modest
recovery in exports.
19


c. Economic Condition (Continued)
However, domestic environment for manufacturing sectors expect to undergo a tough phase with
the looming escalatory trend on two major fronts viz., manpower and energy costs. Both Gas
prices and electricity tariff are increasing in 2013, with further increases beyond 2014 not entirely
ruled. These factors will add to the pressure on cost competitiveness of the domestic
manufacturers.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies that have been used by the Company and its Subsidiaries in the
preparation of these consolidated financial statements are summarized in subsequent paragraphs.
a. Basis of Preparation of Consolidated Financial Statements
The Company and its Subsidiaries consolidated financial statements have been prepared in
accordance with the Indonesian Financial Accounting Standards (PSAK) and its interpretations
(ISAK) established by the Indonesian Institute of Accountants (IIA), Regulation No. VIII G.7 of
Bapepam-LK regarding the Guidelines on Presentation of Financial Statements included in
Appendix of the Decree of the Chairman of the Capital Market and Financial Institutions
Supervisory Agency (Bapepam-LK) No. KEP-347/BL/2012 and the Circular Letter No. SE17/BL/2012 regarding Guidelines on Presentation and Disclosures of Financial Statements for
Publicly Listed Manufacturing Companies, and using checklist for disclosures financial statements
for all industry in Indonesian Capital Market.
The Company and its Subsidiaries consolidated financial statements are in compliance with the
applicable PSAK without exception.
The Company and its Subsidiaries consolidated financial statements for the years ended
December 31, 2012 and 2011 have been prepared in accordance with PSAK No. 1 (Revised 2009),
Presentation of Financial Statements. In accordance with PSAK No. 1 (Revised 2009), the
consolidated statement of comprehensive income has been presented in these consolidated
financial statements. The Company and its Subsidiaries have been elected to present all items of
income and expense in the single statement.
As of August 19, 2011, the Commercial Court had declared that the Subsidiary (PT Texmaco Jaya
Tbk) is bankruptcy and insolvency effective on September 26, 2011. Effective this period, the
Subsidiary becomes subject to the control of the Court, and causing the Company loss its controls.
Consequently, the total comprehensive income from Subsidiary up to August 19, 2011 is classified
as Discountinued Operations and the outstanding of non-controlling interests balance from
Subsidiary of Rp 140,217,500,266 has been written-off from the consolidated statements of
financial position and adjusted into retained earnings (accumulated deficit).
20

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

a. Basis of Preparation of Consolidated Financial Statements (Continued)
In relation to the PSAK No. 4 (Revised 2009), Consolidated and Separate Financial
Statements, the Company has measured investment in subsidiaries using cost method, which
were previously accounted for using equity method.
The Company and its Subsidiaries consolidated financial statements have been prepared on the
historical cost basis of accounting, except for the certain accounts are prepared based on the other
measurement that are more fully described in the accounting policies below. The consolidated
financial statements are prepared under the accrual basis of accounting, except for the
consolidated statements of cash flows.
The consolidated statements of cash flows have been prepared using the direct method, present
receipts and disbursements of cash and cash equivalents classified operating, investing and
financing activities.
The reporting currency used in preparation of the financial statements is US Dollar, which is the
Companys functional and presentation currency. All figures presented in the notes to the
Companys financial statements are expressed in fully US Dollar amount unless otherwise stated.
From January 1, 2012, the Company changed its reporting currency from Rupiah to US Dollar
(Note 4).
b. Principles of Consolidation
The consolidated financial statements incorporate the financial statements of the Company and
entities controlled by the Company (its subsidiaries). Control is achieved where the Company has
the power to govern the financial and operating policies of an entity so as to obtain benefits from
its activities. The results of subsidiaries acquired or disposed of during the year are included in the
consolidated statement of comprehensive income from the effective date of acquisition and up to
the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of the subsidiaries to bring the
accounting policies used in line with those used by the Company.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Non-controlling interests in subsidiaries are identified separately and presented within equity.
Effective January 1, 2011, the interest of non-controlling shareholders maybe initially measured
either at fair value or at the non-controlling interests proportionate share of the fair value of the
acquirees identifiable net asset. The choice of measurement is made on acquisition by acquisition
basis.
21


b. Principles of Consolidation (Continued)
Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those
interests at initial recognition plus non-controlling interests share of subsequent changes in
equity. Total comprehensive income is attributed to non-controlling interests even if this results in
the non-controlling interests having a deficit balance.
Previously, the non-controlling interest is measured on initial recognition at the non-controlling
interests proportionate share in the historical cost of the identifiable net assets of the acquiree.
Where the losses applicable to the non-controlling interests exceed their interest in the equity of
the subsidiary, the excess and any further losses attributable to the non-controlling interest are
charged against the majority interest except to the extent that the non-controlling interest has a
binding obligation to, and is able to, make good the losses.
Changes of the Company interests in subsidiaries that do not result in a loss of control are
accounted for as equity transactions. The carrying amounts of the Company and its subsidiaries
interests and the non-controlling interests are adjusted to reflect the changes in their relative
interests in the subsidiaries. Any difference between the amount by which the non-controlling
interests are adjusted and the fair value of the consideration paid or received is recognized directly
in equity and attributable to owners of the Company.
According to PSAK No. 4 (Revised 2009), when the Company losses control of a Subsidiary, the
Company should derecognizes the assets (including any goodwill) and liabilities of the Subsidiary
at their carrying amount at the date when the control is lost. Also, derecognizes the carrying
amount of any non-controlling interests in the former Subsidiary at the date when control is lost
(including any component of other comprehensive income attributable to them).
The Company has carried forward and opted to present as a separate item within equity, the
remaining balance related to the effect of prior years capital transactions of the Subsidiary with
third parties.
c. Foreign Currency Transaction and Balances
Functional and presentation currency

Items included in the financial statements of each of the Company and its Subsidiaries are
measured using the currency of the primary economic environment in which the entity
operates (functional currency).
The consolidated financial statements are presented in US Dollar, which is the functional and
presentation currency of the Company and its Subsidiaries.
22


b. Principles of Consolidation (Continued)
Transactions and balances

Foreign currency transactions are translated into US Dollar using the exchange rates
prevailing at the dates of the transactions. At each reporting date, monetary assets and
liabilities denominated in foreign currencies are translated into US Dollar using the closing
exchange rate. Exchange rate used as benchmark is the rate which is issued by Bank
Indonesia. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at period-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognized in the consolidated statement of
comprehensive income.
2012
Rp
Foreign currency
US$
JPY
HKD
NOK
CHF
SGD
GBP
EUR
SEK
1
1
1
1
1
1
1
1
1
9,670
112
1,247
1,736
10,597
7,907
15,579
12,810
1,488
2011
Rp
9,068
117
1,167
1,313
9,636
6,974
13,969
11,739
1,314
2010
Rp
8,991
110
1,155
1,330
9,600
6,981
13,894
11,956
1,331
d. Transactions with Related Parties

The Company and its Subsidiaries enters into transactions with related parties as defined in PSAK
7 (Revised 2010) Related Party Disclosure. Related party is principally defined as follows:
(i) A person or a close member of that persons family is related to a reporting entity if that
person :
Has control or joint control over the reporting entity.
Has significant influence over the reporting entity.
Is a member of the key management personnel of the reporting entity or of a parent of
reporting entity.
(ii) An entity is related to a reporting entity if any of the following conditions applies :
The entity and the reporting entity are members of the same group (which means that each
parent, subsidiary and fellow subsidiary is related to the others).
One entity is an associate or joint venture of the other entity (or an associate or joint
venture of a member of a group of which the other entity is a member).
Both entities are joint ventures of the same third party.
One entity is a joint venture of a third entity and the other entity is an associate of the third
entity.
23


d. Transactions with Related Parties (Continued)
The entity is a post-employment defined benefit plan for the benefit of employees of either
the reporting entity or an entity related to the reporting entity. If the reporting entity is
itself such a plan, the sponsoring employers are also related to the reporting entity.
The entity is controlled or jointly controlled by a person identified in (i).
A person identified in (i) has significant influence over the entity or is a member of the
key management personnel of the entity (or of a parent of the entity).
All significant transactions and balances with related parties, whether or not conducted under
normal terms and conditions similar to those with third parties are disclosed in Note 46.
e. New Accounting Standards to Existing Standards

In 2012, the Company and its Subsidiary adopted for the first time the following revised
accounting standards which are mandatory for accounting periods beginning on or after
January 1, 2012 :
PSAK 10 (Revised 2009)
PSAK 56
PSAK 60
ISAK 25
:
:
:
:
:
:
:
:
:
:
:
The Effects of Changes in Foreign Exchange Rate

Property, Plant and Equipment
Employee Benefits
Borrowing Costs
Leases
Income Taxes
Financial Instruments : Presentation
Financial Instruments : Recognition and Measurement
Earning per shares
Financial Instruments : Disclosures
Landrights
Discussed below are the impacts on the consolidated financial statements of these revised
accounting standards.
(i)
PSAK 10 (Revised 2009) : The Effects of Changes in Foreign Exchange Rate. PSAK 10
requires an entity to determine its functional currency and measure its results of operations
and financial position in that currency. Furthermore, it prescribes how to include foreign
currency transactions and foreign operations in the consolidated financial statements of an
entity and translate the consolidated financial statements into a presentation currency.
24


e. New Accounting Standards to Existing Standards (Continued)
(ii)
PSAK 16 (Revised 2011) : Property, Plant and Equipment. PSAK 16 clarifies that an entity
is required to apply the principles of this revised standard to items of property, plant and
equipment used to develop or maintain : (a) biological assets and (b) mineral rights and
mineral reserves such as oil, natural gas and similar non-regenerative resources. The scope
of this revised standard includes : (1) an asset that is being built or developed for future use
as investment property; (2) accounting treatment for property, plant and equipment
classified as held for sale ; and (3) recognition of property, plant and equipment from
government grants.
(iii) PSAK 24 (Revised 2010) : Employee Benefits. PSAK 24 provices guidance for calculation
and additional disclosures for employee benefits with some transitional provisions, which
include short-term employee benefits and long-term employee benefits. It provides an option
for recognition of actuarial gains or losses in addition to using the 10% corridor approach,
that is immediate recognition of actuarial gains or losses in period in which such occur and
as part of other comprehensive income. The revised standard also introduces a number of
disclosure requirements including disclosure of : (a) The percentage or amount of each
major category of investment making up total plan assets; (b) a narrative description of the
basis used to determine the overall expected rate of return on assets; (c) the amounts for the
current annual periods of present value of the defined benefit obligation and fair value of the
plan assets; and (d) the amounts for the current annual period and the previous four annual
periods of experience adjustments arising on the plan liabilities and plan assets.
(iv)
PSAK 26 (Revised 2011) : Borrowing Costs. PSAK 26 clarifies that a borrowing costs,
either directly or indirectly used in financing the construction of a qualifying asset, are
capitalized up to the date when construction is complete. For borrowings that are specific to
the acquisition of a qualifying asset, the amount to be capitalized is determined as the actual
borrowing costs incurred during the period, less any income earned from the temporary
investment of such borrowings. For borrowings that are not specific to the acquisition of a
qualifying asset, the amount to be capitalized is determined by applying a capitalization rate
to the amount expensed on the qualifying asset. All other borrowing costs are expensed as
incurred.
(v)
PSAK 30 (Revised 2011) : Leases. Under PSAK 30, when the lease contains elements of
land and buildings at the same time, the entity must review the classification for each
element separately, whether as a finance lease or operating lease. As a result of a separate
study conducted by the Entity taking into account the ratio between the economic life of the
lease with the re-examined from each of the elements and other factors that are relevant, any
element might result in a different lease classification.
25


(vi)
PSAK 46 (Revised 2010) : Income Taxes. PSAK 46 describes the accounting treatment for
income taxes to account for the current and future tax consequences of the future recovery /
(settlement) of the carrying amount of assets (liabilities) that are recognized in the
consolidated statement of financial position ; and transactions and other events of the
current period that are recognized in the consolidated financial statements. In additon, the
Company also recorded interest and penalty for lack / excess income tax, if any, as part of
the current tax income (expense) in the consolidated statement of comprehensive income.
(vii) PSAK 50 (Revised 2010) : Financial Instruments : Presentation. PSAK 50 contains

requirements for the presentation of financial instruments and identifies the information that
must be disclosed. The applicability of disclosure requirements to the classification of
financial instruments, from the perspective of the issuer, into financial assets, financial
liabilities and equity instruments; the classification of related interest, dividends, losses and
gains; and the circumstances in which financial assets and financial liabilities should be
offset. PSAK requires disclosure of, among other things, information about factors that
affect the amount, timing and certainty of future cash flows an entity associated with
financial instruments and the accounting policies applied to the instrument.
(viii) PSAK 55 (Revised 2011) : Financial Instruments : Recognition and Measurement. PSAK 55
set the principles for recognizing and measuring financial assets, financial liabilities and
some contracts to buy or sell non-financial items. PSAK, among other things, provides the
definition and characteristics of derivatives, the category of financial instruments,
recognition and measurement, hedge accounting and determination of hedging relationships.
(ix) PSAK 56 : Earnings per share. PSAK 56 requires the comparison of performance between
different entities in the same period and between difference reporting periods for the
Company. Earning per share is calculated by dividing the profit attributable to owners of the
Company by the weighted average number of shares outstanding during the period.
(x)
PSAK 60 : Financial Instruments : Disclosures. PSAK 60 introduces new disclosures to

improve the information about financial instruments. It requires extensive disclosures about
the significance of financial instruments for an entitys financial position and performance,
and quantitative and qualitative disclosures on the nature and extent of risks arising from
financial instruments, including specified minimum disclosures about credit risk, liquidity
risk and market risk, as well as sensitivity analysis to market risk. It also requires disclosures
relating to fair value measurements using a three-level fair value hierarchy that reflects the
significance of the inputs used in measuring fair values and provide more direction in the
form of quantitative disclosures about fair value measurements and require information to
be disclosed in a tabular format unless another format is more appropriate.
26


(xi) ISAK 25 : Landrights. Under ISAK 25, the cost of acquiring land rights in the form of right
to cultivate, right to build and use rights are recognized as property, plant and equipment.
Cost is a cost directly attributable to obtaining land rights, including the cost of handling the
legal rights to land when the land was first acquired. Land rights in the form of right to
cultivate, right to build and use rights are not depreciated, unless there is evidence indicating
that the extension or renewal of land is likely to or definitely not be obtained. While the cost
of the extension or renewal of legal rights to land are recognized as an intangible asset and
amortized over the life of the rights of land rights or economic life whichever is shorter.
The Company and its Subsidiaries determined that the adoption of these new and revised
standards, except for PSAK 10 (Revised 2010), did not materially effect its consolidated financial
statements. In addition, the Company and its Subsidiaries have disclosed the revealed information
regarding the presentation of consolidated financial statements and the disclosures.
The adoption of the following new standards, revised standards and interpretations did not have
any significant impact on the consolidated financial statements.


PSAK 61
PSAK 62
PSAK 63
PSAK 64
ISAK 15
ISAK 16
ISAK 18
ISAK 19
ISAK 20
Investment Property
Accounting and Reporting by Retirement Benefit Plans
Accounting for Loss Insurance
Stripping Activities and Environmental Management in
General Mining
Construction Contracts
Accounting for Life Insurance
Financial Reporting for Non-Profit Organizations
Share-based Payments
Accounting for Government Grants and Disclosure of
Government Assistance
Insurance Contracts
Financial Reporting in Hyperinflationary Economies
Exploration and Evaluation of Mineral Resources
The Limit on a Defined Benefit Asset, Minimum Funds
Requirements and Their Interaction
Service Concession Arrangements
Government Assistance No Specific Relation to Operating
Activities
Applying the Restatement Approach under PSAK 63 :
Financial Reporting in Hyperinflationary Economies
Income Taxes Changes in the Tax Status of an Entity or its
Shareholder
27


ISAK 22
ISAK 23
ISAK 24
ISAK 26
f.
Service Concession Arrangements : Disclosure

Operating Leases Incentives
Evaluating the Substance of Transactions Involving the
Legal Form of a Lease
Reassessment of Embedded Derivatives
Financial assets
Financial assets include cash and other financial instruments. Financial assets, other than hedging
instruments, are classified into the following categories: financial assets at fair value through
profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial
assets. Financial assets are assigned to the different categories by management on initial
recognition, depending on the purpose for which the investments were acquired. The designation
of financial assets is re-evaluated at every reporting date at which date a choice of classification or
accounting treatment is available, subject to compliance with specific provisions of applicable
accounting standards.
Regular purchases and sales of financial assets are recognized on their trade date. All financial
assets that are not classified as at fair value through profit or loss are initially recognized at fair
value plus any directly attributable transaction costs. Financial assets carried at fair value through
profit or loss is initially recognized at fair value and transaction costs are expensed in the
consolidated statement of comprehensive income.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in the active market. They arise when the entity provides money, goods or services
directly to a debtor with no intention of trading the receivables. They are included in current
assets, except for maturities greater than 12 months after the consolidated statement of financial
position date which are classified as non-current assets.
Loans and receivables are subsequently measured at amortized cost using the effective interest
method, less impairment loss, if any. Any change in their value is recognized in the consolidated
statement of comprehensive income.
Impairment loss is provided when there is objective evidence that the entity will not be able to
collect all amounts due to it in accordance with the original terms of the receivables. The amount
of the impairment loss is determined as the difference between the assets carrying amount and the
present value of estimated cash flows.
28


f.
Financial Assets (Continued)

The Company and its Subdiariess financial assets categorized as Loans and Receivables, are
presented as Cash and Cash Equivalents, Trade Receivables, Other Receivables, Other Current
Financial Assets, Non-trade receivables from Related Parties, and Other Non-current Financial
Assets in the consolidated statement of financial position.
All income and expenses, including impairment losses, relating to financial assets that are
recognized and presented as part of finance costs in the consolidated statement of comprehensive
income.
Non-compounding interest, dividend income and other cash flows resulting from holding financial
assets are recognized in profit or loss when earned, regardless of how the related carrying amount
of financial assets is measured.
Derecognition of financial assets occurs when the rights to receive cash flows from the financial
instruments expire or are transferred and are substantially all of the risks and rewards of
ownership have been transferred.
g. Cash and Cash Equivalents

Cash and cash equivalents are defined as cash on hand, demand deposits, highly liquid
investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to insignificant risk of changes in value.
h. Trade and Other Receivables

Trade receivables are amounts due from customers for product sold performed in the ordinary
course of business. If collection is expected in one year or less (or in the normal operating cycle of
the business if longer), they are classified as current assets. If not, they are presented as noncurrent assets.
Non-trade receivables from related parties are receivables balance reflecting loan given to related
parties of the Company and its Subsidiaries.
Trade and non-trade receivables are recognized initially at fair calue and subsequently measured at
amortized cost using the effective interest method, if the impact of discounting is significant, less
any provision for impairment.
Collectability of trade and non-trade receivables is reviewed on an ongoing basis. Debts which are
known to be uncollectible are written off by reducing the carrying amount directly. An allowance
account is used when there is objective evidence that the Entity will not be able to collect all
amounts due according to the original terms of the receivables.
29


h. Trade and Other Receivables (Continued)
Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or
ginancial reorganization and default or delinquency in payments are considered indicators that the
trade receivable is impaired. The amount of the impairment allowance is difference between the
assets carrying amount and the present value of estimated future cash flows, discounted at the
original effective interest rate. Cash flows relating to short-term receivables are not discounted if
the effect of discounting is immaterial.
The amount of the impairment loss is recognized in the consolidated statement of comprehensive
income within general and administrative expenses. When a trade and non-trade receivables for
which an impairment allowance had been recognized becomes uncollectible in a subsequent
period, it is written off againse the allowance account. Subsequent recoveries of amounts
previously written off are credited against miscellaneous income (expense), net in the
consolidated statement of comprehensive income.
i.
Impairment of Financial Assets

The entity assesses at each consolidated statement of financial position dates whether there is any
objective evidence that a financial asset or a group of financial assets is impaired. For loans and
receivables carried at amortized cost, the entity first assesses whether objective evidence of
impairment exists individually significant, or collective for financial assets that are not
individually significant.
If the entity determines that no objective evidence of impairment exists for an individually
assessed financial asset, whether significant or not, the asset is included in a group of financial
assets with similar credit risk characteristics and collectively assessed for impairment. Assets that
are individually assessed for impairment and for which an impairment loss is, or continues to be,
recognized are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss has occurred, the amount of the loss is
measured as the difference between the assets carrying amount and the present value of estimated
future cash flows (excluding future expected credit losses that have not yet been incurred). The
present value of the estimated future cash flows is discounted at the financial assets original
effective interest rate. If a loan has a variable interest rate, the discount rate for measuring
impairment loss is the current effective interest rate.
The carrying amount of the financial asset is reduced through the use of an allowance for
impairment account and the amount of the loss is recognized in the consolidated statement of
comprehensive income. Interest income continues to be accrued on the reduced carrying amount
based on the original effective interest rate of the financial asset. Loans and receivables, together
with the associated allowance, are written off when there is no realistic prospect of future recovery
and all collateral has been realized or has been transferred to the entity.
30


i.
Impairment of Financial Assets (Continued)

If, in a subsequent year, the amount of the estimated impairment loss increases or decreases
because of an event occurring after the impairment was recognized, the previously recognized
impairment loss is increased or reduced by adjusting the allowance for impairment account. If a
future write-off is later recovered, the recovery is recognized in the consolidated statement of
j.
Inventories
Finished goods, work in process, raw materials and indirect materials are carried at the lower of
cost and net realizable value. Cost is determined by the average method. Cost includes all
expenses directly attributable to the manufacturing process as well as suitable portions of related
production overheads, based on normal operating capacity. Net realizable value is the estimated
selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale.
An allowance for impairment is determined on the basis of estimated future usage or sale of
individual inventory items. The amount of any write-down of inventories to net realizable value
and all losses of inventories are recognized as an expense in the period the write-down or loss
occurs. The amount of any reversal of any write-down of inventories, arising from an increase in
net realizable value, is recognized as a reduction in the amount of inventories recognized as an
expense in the period in which the reversal occurs.
k. Prepaid Expenses
Prepaid expenses are charged to operations over the periods benefit using the straight-line method.
l.
Property, Plant and Equipment

Initially, an item of property, plant and equipment is measured at its cost, which comprises its
purchase price and any cost directly attributable to bringing the assets to the location and
condition necessary for it to be capable of operating in the manner intended by management, and
also include the initial estimate of the costs of dismantling and removing the item and restoring the
site on which it is located.
Subsequent expenditures such as replacement and major inspection are added to the carrying
amount of the asset when it is probable that future economic benefits will flow to the entity and
the cost of the item can be measured reliably. The carrying amount of those parts that are replaced
or any remaining carrying amounts of the cost of the previous inspection is derecognized. The
costs of day-to-day servicing of an asset are recognized as an expense in the period in which they
are incurred.
31


l.
Property, Plant and Equipment (Continued)

Depreciation is recognized on straight-line method to write down the depreciable amount of
property, plant and equipment. The estimated useful lives of the assets are as follows:
Years
Buildings and improvement
Machinery and equipment
Transportation equipment
Office equipment
Store equipment
20
3-20
5
5
5
Land is stated at cost and is not depreciated.

The residual values, useful lives and depreciation method are reviewed at each reporting date to
ensure that such residual values, useful lives and depreciation method are consistent with the
expected pattern of economic benefits from those assets.
Depreciation of an asset begins when it is available for use, i.e. when it is in the location and
condition necessary for it to be capable of operating in the manner intended by management.
Depreciation does not cease when the assets become idle or is retired from active use unless the
asset is fully depreciated. Fully depreciated assets are retained in the accounts until they are no
longer in use and no further charge for depreciation is made in respect of those assets.
When an asset is disposed of or when no future economic benefits are expected from its use or
disposal, the cost and accumulated depreciation and impairment losses, if any, are removed from
the accounts. Any resulting gains or losses from derecognition of an item of property, plant and
equipment is included in the consolidated statement of comprehensive income.
The Company and its Subsidiaries property, plant and equipment are carried at cost less
accumulated depreciation and accumulated impairment losses, if any, since the Company and
Subsidiaries adopt the cost method.
m. Contruction in Progress
Construction in progress is stated at cost and presented as part of property, plant and equipment.
The accumulated cost will be reclassified to the appropriate property, plant and equipment account
when the contruction is substantially completed and the asset is ready for its intended use.
32


n. Impairment of Non-Financial Assets
The Company and its Subsidiaries property, plant and equipment are tested for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable.
For purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows. An impairment loss is recognized for the amount by which the
assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher of
an assets net selling price and value in use.
o. Intangible asset
The certain cost associated with the renewal of legal titles on the landrights are deferred and
amortized during twenty (20) years since April 2012.
p. Leases
Determination whether an arrangement is, or contains, a lease is made based on the substance of
the arrangement and assessment of whether fulfillment of the arrangement is dependent on the use
of a specific asset or assets, and the arrangement convey a right to use the asset.
Leases in which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases, Payments made under operating lease (net of any
incentives received from the lessor) are charged to the consolidated statement of comprehensive
income on a straight-line method over the term of the lease.
Each lease payment is allocated between the liability and finance charges so as to achieve a
constant rate on the finance balance outstanding. The corresponding rental obligations, net of
finance charges, are included in Credit Financing Payables. The interest element of the finance
cost is charged to the consolidated statement of comprehensive income over the lease period so as
to produce a constant periodic rate of interest on the remaining balance of the liability for each
period.
q. Financial Liabilities
Financial liabilities include Trade Payables, Accrued Expenses, Bank Loans, Secured Debts,
Short-term Loans, Notes Payable, Other Short-term Financial Liabilities, Borrowing from Other
Financial Institution (such as : Unsecured Debts and Notes Payables, Credit Financing Payables,
Working Capital Loans, and Finance Lease Liabilities), which are measured at amortized cost
using the effective interest rate method.
33


q. Financial Liabilities (Continued)
Financial liabilities are recognized when the entity becomes a party to the contractual terms of the
instrument. All interest-related charges are recognized as an expense in the consolidated statement
of comprehensive income.
Bank Loans, Secured Debts, Short-term Loans, Notes Payable and Borrowing from Other
Financial Institution are raised for support of short-term funding of operations. They are
recognized at proceeds received, net of direct issue costs.
Credit Financing Payables and Finance Lease Liabilities are measured at initial value less the
capital element of lease repayments.
Trade Payables, Accrued Expenses, and Other Short-term Financial Liabilities are initially
recognized at their fair value and subsequently measured at amortized cost less settlement
payments.
Financial liabilities are derecognized from the consolidated statement of financial position only
when the obligations are extinguished either through discharge, cancellation or expiration.
r. Determination of Fair Value

Fair value is defined as the amount at which the financial instruments could be exchanged in a
current transaction between knowledgeable, willing parties in an arms length transaction, other
than in a forced sale or liquidation. Fair values are obtained from quoted prices, discounted cash
flow models, as appropriate.
The face values less any estimated credit adjustments for financial assets and liabilities with a
maturity of less than one year are assumed to approximate to their fair values. The fair value of
financial liabilities for disclosure purposes is estimated by discounting the future contractual cash
flows at the current market interest rate available to the entity for similar financial instruments.
s. Employees Benefit
(i) Short-term employee benefits
Short-term employee benefits are recognized when they accrue to the employees.
34


r. Determination of Fair Value (Continued)
(ii) Post-employment obligation
Employee entitlements to service and compensation payments relating to the employees
separation, gratuity and compensation are recognized. A provision is made for the estimated
liability as a result of past services rendered by employees up to the reporting date and is
calculated based on the Manpower Law No. 13/2003 issued by the Government of Republic
Indonesia in April 2003.
The cost of providing post-employment benefit is determined using the Projected Unit Credit
Method. The accumulated unrecognized actuarial gains and losses that exceed 10% of the
present value of the entitys defined benefit obligations is recognized on a straight-line basis
over the expected average remaining working lives 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 benefit obligation recognized in the consolidated statement of financial position
represents the present value of the defined benefit obligation, as adjusted for unrecognized
past service cost and unrecognized actuarial gains and losses.
The Company and its Subsidiaries have elected to continue to use the corridor approach in the
recognition of actuarial gains/(losses).
(iii) Termination benefits
Termintation benefits are payable when employment is terminated by the Entity before the
normal retirement date, or whenever an employee accepts voluntary redundancy in exchange
for these benefits. The Entity recognized termination benefits when it is demonstrably
committed to a termination when the entity has a detailed formal plan to terminate the
employment of current employees without possibility of withdrawal. In the case of an offer
made to encourage voluntary redundancy, the termination benefit are measured based on the
number of empliyees expected to accept the offer. Benefits falling due more than 12 months
after the reporting date are discounted to their present value.
(i) Bonus
The Entity recognized a liability and an expense for bonuses based on a formula that takes into
consideration the profit attributable to the Companys shareholder after certain adjustments.
The Entity recognized a provision where contractually obliged or where there is a past practice
that has created a constructive obligation.
35


t.
Income Tax
The tax expense comprises current and deferred tax. Tax is recognized in the consolidated
statement of comprehensive income, except to the extent that it relates to items recognized in other
comprehensive income or directly in equity.
The current income tax charge is calculated on the basis of the tax laws enacted or subsequently
enacted at the reporting date, where the Company and its Subsidiaries operate and have a taxable
income. Management periodically evaluates positions taken in tax returns (SPT) with respect to
situations in which applicable tax regulation is subject to interpretation. It establishes provision
where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognized, using the balance sheet liability method, on temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts in the
consolidated financial statements. However, deferred tax liabilities are not recognized if they arise
from the initial recognition of goodwill and deferred income tax is not accounted for if it arises
from initial recognition of an asset or liability in a transaction other than a business combination
that at the time of the transaction affects netihter accounting nor taxable profit or loss. Deferred
income tax is determined using tax rates that have been enacted or substantially enacted as at
reporting period and is expected to apply when the related deferred income tax asset is realized or
the deferred income tax liability is settled.
Deferred income tax assets are recognized only to the extent that it is probable that future taxable
profit will be available against which the temporary differences can be utilized.
Deferred income tax assets and liabilities are offset when there is a legal enforceable right to
offset current tax assets against current tax liabilities and when the deferred income taxes assets
and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where there is an intention to settle the balances on a net
basis.
Amendments to taxation obligations are recorded when an assessment is received or, if objected to
or appealed against, when the result of the objection or appealed is determined.
u. Additional Paid-in Capital

Expenses related to the issuance of the Companys shares to the public were deferred and
amortized over a ten-year period using the straight-line method. In 1997, the Company opted to
amortize the remaining balance of this account over five years. Based on BAPEPAMs decision
letter KEP-No.06/PM/2000 dated March 13, 2000, the share issuance costs were retroactively
recorded into Additional Paid-in Capital.
36


v. Revenue and Expense Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
entity and the revenue can be reliably measured. The following specific recognition criteria must
also be met before revenue is recognized:
(i) Sale of goods Revenue is recognized when the risks and rewards of ownership of the goods
have passed to the buyer, i.e. generally when the goods are delivered to the customers.
(ii) Interest income Revenue is recognized as the interest accrues taking into account the
effective yield of the asset.
Revenue is measured by reference to the fair value of consideration received or receivable by the
entity for goods supplied.
Expenses are recognized upon utilization of the service or at the date they are incurred.
w. Earnings per Share

Basic earnings per share are calculated by dividing the profit (loss) attributable to the equity
holders of the Company by the weighted average number of ordinary shares outstanding during the
period.
Diluted earning per share is calculated by adjusting the weighted average number of ordinary
shares outstanding.
x. Segment Information
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker. The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating segments, has been identified as
Board of Director that makes strategic decisions.
An operating segment is a component of an entity :
1. that engages in business activities from which it may earn revenue and incur expenses
(including revenue and expenses relating to the transaction with other components of the same
entity).
2. whose operating results are reviewed regularly by the entitys chief operating decision maker
to make decision about resources to be allocated to the segments and assess its performance.
3. for which discrete financial information is available.
37

4. CHANGE IN REPORTING CURRENCY

On January 1, 2012, the Company changed its reporting currency from Indonesian Rupiah to
US Dollar, its functional currency, due to substantially, if not all :
a. The Companys sales and earnings are originated in US Dollar.
b. The Companys purchases are originated in US Dollar.
c. The Companys financing activities are originated in US Dollar.
As such, the Board of Directors believes the change will result in a more appropriate presentation of
the Companys transaction in the consolidated financial statements. The change of the Companys
reporting currency has been accounted for in accordance with PSAK No. 10 (Revised 2010) The
Effects of Changes in Foreign Exchange Rate which should be applied on or after January 1, 2012.
For comparative purposes, the consolidated financial statements and associated notes as at and for the
years ended December 31, 2011 and 2010 have been remeasured, as though the US Dollar were the
reporting currency in that year, using the procedures outlined below:
a. The Companys monetary items are converted into US Dollar using the closing rate, while
nonmonetary items including equity are converted using the exchange rate at the date of the
transactions; and
b. Income and expenses are converted using the exchange rate at the date of the transactions.
The following is the consolidated statements of financial position as of December 31, 2011 and 2010
presented in Indonesian Rupiah currency.
December 31,
2011
Rp
CURRENT ASSETS
Short-term investments
Trade receivables
Third parties
Related parties
Other receivables
Third parties
Inventories
Purchase advances
Prepaid taxes
Prepaid expenses
Advances for investment in a joint venture
Other current assets
38
December 31,
2010
Rp
31,177,273,662
3,000,000,000
87,892,873,462
1,000,000,000
454,265,227,439
268,722,447,175
422,111,905,807
268,722,447,175
22,937,261,126
795,058,287,598
343,195,422,233
119,411,500,545
10,588,262,122
52,018,685,430
4,431,384,634
462,112,098,195
291,068,826,915
126,510,220,118
8,241,335,214
26,473,126,432
2,100,374,367,330
1,698,564,217,952

4. CHANGE IN REPORTING CURRENCY (Continued)

December 31,
2011
Rp
December 31,
2010
Rp
NONCURRENT ASSETS
Non-trade receivables from related parties
Restricted cash in banks
Deferred tax assets
317,368,061,827
10,345,623,643
1,255,117,683,754
425,918,780,239
17,129,600,731
1,775,584,133,376
31,293,233,848
1,582,831,369,224
2,249,925,748,194
TOTAL ASSETS
3,683,205,736,554
3,948,489,966,146
637,839,711,337
9,185,233,096,043
431,987,380,441
9,107,034,576,501
324,161,880,678
182,150,784,488
215,808,272,379
17,567,520,945
413,557,919,140
223,080,294,936
274,011,964
22,684,826,196
695,686,772,082
77,078,000,000
517,187,846
38,573,261,263
38,958,003,000
38,670,122,950
475,480,013
155,665,338,586
10,586,174,968,953
11,220,829,471,835
Long-term liabilities - net of
current maturity :
Employees benefit liabilities
198,997,359,748
131,486,000,000
440,023,412
77,637,935,506
30,516,083,167
189,504,468,044
326,174,259,309
696,228,253
73,633,912,844
89,854,542,024
439,077,401,833
679,863,410,474
CURRENT LIABILITIES
Bank Loans
Secured Debts
Short term loans
Notes payable
Trade payables
Third parties
Liabilities for purchase of property, plant and equipment
Taxes payable
Accrued expenses
Current maturity of long-term liabilities:
Obligation under finance lease
Other current liabilities
39


December 31,
2011
Rp
EQUITY (DEFICIENCY)
Capital stock
Authorized 12,357,255,040 shares at Rp 10,000
par value per Series A, Rp 1,000 par value per Series
B and Rp 40 par value per Series C in 2011 and 2010
Issued and paid up 219,696,000 Series A and
2,157,211,950 Series C in 2011 and 2010
Other components of equity
Retained earnings (accumulated deficit)
Appropriated
Unappropriated
December 31,
2010
Rp
2,283,248,477,500
5,586,506,149,053
12,075,095,048
2,283,248,477,500
5,586,506,149,053
12,232,185,356
8,280,000,000
(15,232,156,355,833)
8,280,000,000
(15,701,308,253,547)
Equity attributable to the owners of the Company

(7,342,046,634,232)
(7,811,041,441,638)
(141,161,474,525)
Total Equity (Deficiency)
(7,342,046,634,232)
(7,952,202,916,163)

EQUITY (DEFICIENCY)
3,683,205,736,554
3,948,489,966,146
The following is the consolidated statement of comprehensive income for the year ended December
31, 2011 presented in Indonesian Rupiah currency.
2011
Rp
OPERATING REVENUES
Net sales
Total operating revenues
5,577,223,233,050
4,673,888,541
5,581,897,121,591
COST OF GOODS SOLD
(5,191,343,118,311)
GROSS PROFIT
390,554,003,280
Selling expenses
Loss on foreign exchange transactions, net
(120,468,271,917)
(164,956,335,861)
755,425,253
(83,939,034,346)
6,804,776,757
(361,803,440,114)
40


2011
Rp
OPERATING LOSS
28,750,563,166
Finance costs
(142,618,575,240)
(113,868,012,074)

Current period
Deferred
59,286,095,421
Total Tax Income
59,286,095,421
Total Net Loss for the year from continuing operations
(54,581,916,653)
Discontinued operations :
Profit from discontinued operations
Gain from disposal of Subsidiary
8,301,337,613
656,593,951,279
Profit from discountinued operations
664,895,288,892
TOTAL NET LOSS FOR THE YEAR
610,313,372,239
OTHER COMPREHENSIVE INCOME, AFTER TAX

Foreign currency translation
Related income tax
Total Other Comprehensive Income, Net of Tax
(209,453,744)
52,363,436
(157,090,308)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
610,156,281,931
Net profit attributable to :

609,369,397,980
943,974,259
Total Net Profit For The Year
610,313,372,239
Total comprehensive income attributable to :

609,212,307,672
943,974,259
Total Comprehensive Income For The Year
610,156,281,931
EARNING PER SHARE
257
41

5. ESTIMATION UNCERTAINTY
The preparation of the consolidated financial statements in conformity with Indonesian Financial
Accounting Standard required management to make judgments, estimates and assumption that effect
the application of accounting policies and amounts reported in the consolidated financial statements.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting
estimates are recognized in the period in with the estimates are revised and in the future period
effected.
Information about critical judgments and estimates in applying accounting policies that have the most
significant effect on the amounts recognized in the consolidated financial statements are as follows :
Functional currency
The functional currency of the Company and its Subsidiaries are the currency of the primary economic
environment in which each entity operates. The Company and its Subsidiaries consider some factors in
determining its functional currency, among others, the currency that mainly influences the revenue,
cost and financing activities, and the currency in which receipts from operating activities are usually
retained.
Based on the economic substance of the underlying circumstances relevant to the Company and its
Subsidiaries, the functional currency has been determined to be US Dollar, as this reflected the fact
that majority of the Company and its Subsidiaries operational businesses are influenced by pricing in
domestic commodity markets with a US Dollar economic environment.
Impairment
An impairment loss is recognized for the amount by which the assets or cash-generating units
carrying amount exceeds its recoverable amount. To determine the recoverable amount, management
estimates expected future cash flows from each cash-generating unit and determines a suitable interest
rate in order to calculate the present value of those cash flows. In the process of measuring expected
future cash flows management makes assumptions about future operating results. These assumptions
relate to future events and circumstances. The actual results may vary, and may cause significant
adjustments to the Company and Subsidiaries assets within the next financial year. In most cases,
determining the applicable discount rate involves estimating the appropriate adjustment to market risk
and the appropriate adjustment to asset-specific risk factors.
42

5. ESTIMATION UNCERTAINTY (Continued)

Pension and employees benefit
The determination of the Company and its Subsidiaries obligations and cost for pension and
employee benefits liabilities is dependent on its selection of certain assumptions used by the
independent actuaries in calculating such amounts. Those assumptions include among others, discount
rates, annual salary increase rate, annual employee turn-over rate, disability rate, retirement age and
mortality rate. Actual results that differ from the Company and its Subsidiaries assumptions which
effects are more than 10% of the defined benefit obligations are deferred and being amortized on a
straight-line basis over the expected average remaining service years of the qualified employees.
While the Company and its Subsidiaries believe that its assumptions are reasonable and appropriate,
significant differences in the actual results or significant changes in the Company and its Subsidiaries
assumptions may materially affect its estimated liabilities for pension and employee benefits and net
employee benefit expense.
Useful lives and depreciation of property, plant and equipments and intangible assets
Management determined the estimates the useful lives of these property, plant and equipment and its
depreciation expenses, and intangible assets and its amortization expenses based on the expected
utility of the assets. These are common life expectancies applied in the industries where the Company
and its Subsidiaries conducts its business. Actual results may vary due to technical obsolescence.
Changes in the expected level of usage and technological development could impact the economic
useful lives and the residual values of these assets, and therefore future depreciation charges could be
revised.
Fair value of financial instruments
Management uses valuation techniques in measuring the fair value of financial instruments where
active market quotes are not available. In applying the valuation techniques, management makes
maximum use of market inputs, and uses estimates and assumptions that are, as far as possible,
consistent with observable data that market participants would use in pricing the instrument. Where
applicable data is not observable, management uses its best estimate about the assumptions that
market participants would make. These estimates may vary from the actual prices that would be
achieved in an arms length transaction at the reporting date.
Assessing income tax and Realization of deferred tax assets
Determining provision for corporate income tax requires significant judgment by management. There
are certain transactions and computation for which the ultimate tax determination is uncertain during
the ordinary course of business. The Company and its Subsidiaries recognizes liabilities for expected
corporate income tax issues based on estimates of whether additional corporate income tax will be
due. Where the final tax outcome of these matters is different from the amounts that were initially
recorded, such differences will have an impact on the current and deferred tax assets and liabilities in
the period in which such determination is made.
The Company and its Subsidiaries conducted a review of the carrying amount of deferred tax assets at
each end of reporting period and reduce the value of such assets by as much as possible can not be
realized, where the availability of taxable income allow to use all or part of the deferred tax assets.
43

5. ESTIMATION UNCERTAINTY (Continued)

Assessing income tax and Realization of deferred tax assets (Continued)
The Company and its Subsidiaries review on the recognition of deferred tax assets for deductible
temporary difference can be deductible based on the level and timing from the estimated taxable
income for the next reporting period. The estimation is based on the achievement of the Company and
its Subsidiaries in the past and future expectation toward income and expenses, as well as with the tax
planning strategies in the future. But there is no certainty that the Company and its Subsidiaries can
generate sufficient taxable income to allow use of part or all of these deferred tax assets.
6. CASH AND CASH EQUIVALENTS

2012
US$
Cash on hand :
Rupiah
US Dollar
Singapore Dollar
European Euro
Norwegian Krone
2011
US$
2010
US$
37,789
27,650
6,644
8,315
170
41,957
33,635
6,354
3,039
161
41,281
33,113
2,223
719
164
80,568
85,146
77,500
7,780,057
935,461
1,447,706
1,133,745
7,408,441
1,275,831
PT Bank CIMB Niaga Tbk

US Dollar account
Rupiah account
50,152
359,146
86,338
179,040
12,190
103,022
PT Bank Central Asia Tbk

US Dollar account
Rupiah account
271,211
103,049
293,405
59,989
713,036
49,732
PT Bank Negara Indonesia (Persero) Tbk

Rupiah account
US Dollar account
214,345
152,795
132,151
1,691
9,713,421
3,353,018
9,696,094
Cash in banks :
Third Parties :
Deutsche Bank
US Dollar account
Rupiah account
Carried forward
44

6. CASH AND CASH EQUIVALENTS (Continued)

2012
US$
2011
US$
2010
US$
3,353,018
9,696,094
Cash in banks ::
Third Parties :
Brought forward
9,713,421
PT Bank Mandiri Tbk

Rupiah account
1,160
PT Bank Rakyat Indonesia Tbk

Rupiah account
897
Total
9,713,421
3,353,018
9,698,151
9,793,989
3,438,164
9,775,651
Cash at bank can be withdrawn at anytime. Cash in banks generally earn interest at rates based on
daily bank deposit rates.
No cash and cash equivalents are placed with the related parties.
The Companys cash on hand were covered by insurance with PT Asuransi Rama Satria Wibawa
against direct loss or damage to the cash and cheque of Rp 3,900,000,000 (equivalent to
US$ 403,309 in 2012, US$ 430,084 in 2011 and US$ 433,767 in 2010), respectively. Management
believes that the insurance coverage is adequate to cover possible losses arising from such risks.
The net carrying value of cash and cash equivalents are considered a reasonable approximation of
fair value.
7. TRADE RECEIVABLES
This account consists of :
Third parties :
2012
US$
2011
US$
2010
US$
Local debtors
Foreign debtors
51,373,330
6,614,698
44,356,060
5,739,355
48,239,699
5,547,579
Total
Less : Allowance for impairment
57,988,028
50,095,415
53,787,278
(6,839,006)
57,988,028
50,095,415
46,948,272
Net
45

7. TRADE RECEIVABLES (Continued)

A summary of the aging of trade receivables from third parties based on the date of invoice is as
follows :
2012
US$
Up to 1 month
> 1 month 3 months
> 3 months 6 months
> 6 months 1 year
> 1 year
Total
2011
US$
2010
US$
43,545,691
14,145,445
204,355
92,537
38,252,438
11,725,493
25,509
91,975
37,065,253
9,651,522
231,497
6,839,006
57,988,028
50,095,415
53,787,278
Changes in the allowance for impairment from third parties are as follows :
2012
US$
Beginning balance
Balance of unconsolidated subsidiary
Movement during the year :
Addition
Deduction
Ending balance
2011
US$
6,839,006
(6,839,006)
2010
US$
6,839,006
6,839,006
Trade receivables from third parties are short-term and non interest bearings.
All amounts of trade receivables from third parties have been reviewed for indication of impairment.
Based on the review of the status of individual trade receivables from third parties as of December 31,
2012 dan 2011, the Company and its Subsidiaries managements believe that there is no requirement
of allowance for impairment as the amounts are fully collectible. And based on the review of the status
of individual trade receivables from third parties as of December 31, 2010, the Company and its
Subsidiaries managements believe that the impairment of trade receivables from third parties are
adequeate to cover possible losses on uncollectible receivables from third parties because of the
financial difficulties of the Subsidiarys customers.
The net carrying value of trade receivables from third parties is considered a reasonable approximation
of fair value.
46


The details of trade receivables from third parties based on currencies are as follows :
United States Dollar

Rupiah
Rp 2,019,778,766 in 2012,
Rp 102,616,673 in 2011, and
Rp 57,478,608,468 in 2010
Total
2012
US$
2011
US$
2010
US$
57,779,157
50,084,099
47,394,372
208,871
11,316
6,392,906
57,988,028
50,095,415
53,787,278
2012
US$
2011
US$
2010
US$
27,789,291
15,657,945
29,634,147
15,657,945
29,887,938
43,447,236
(15,657,945)
45,292,092
(15,657,945)
29,887,938
27,789,291
29,634,147
29,887,938
Related parties :
PT Multikarsa Investama
PT Texmaco Jaya Tbk (under bankruptcy)
Total
Net
A summary of the aging of trade receivables from related parties based on the date of invoice is as
follows :
Up to 1 month
> 1 month 3 months
> 3 months 6 months
> 6 months 1 year
> 1 year
Total
47
2012
US$
2011
US$
2010
US$
43,447,236
45,292,092
29,887,938
43,447,236
45,292,092
29,887,938


Changes in the allowance for impairment of trade receivables from related parties are as follows :
2012
US$
Beginnning balance
Addition
Deduction
15,657,945
Ending balance
15,657,945
2011
US$
2010
US$
15,657,945
15,657,945
Trade receivables from related parties are short-term and non interest bearings.
Additions in allowance for impairment in 2011 of US$ 15,657,945 (equivalent to Rp 141,986,246,529)
due to the impairment loss on uncollectible trade receivables from PT Texmaco Jaya Tbk (under
bankruptcy), and has been eliminated with the discountinued operations financial statements from
Subsidiary (Note 45).
Based on the review of the status of the trade receivables from related parties, management believes
that the carrying value is a reasonable approximation of fair value. The impairment was not provided
since the related party, PT Multikarsa Investama, is under debt restructuring program and the
settlement of the receivables from related party will be done when the debt restructuring is completed.
The details of trade receivables from related parties based on currencies are as follows :
2012
US$
2011
US$
2010
US$
15,657,945
15,657,945
Rupiah
Rp 268,722,447,174 in 2012, 2011 and 2010
27,789,291
29,634,147
29,887,938
43,447,236
45,292,092
29,887,938
Total
The net carrying value of trade receivables from related parties is considered a reasonable
approximation of fair value.
48


In 2012 and 2011, all trade receivables are used as collateral for the Companys bank loans and
working capital loans that were received from Damiano Investments BV., Netherland (Notes 20 and
25). And in 2010, all trade receivables are used as collateral for the Companys bank loans, working
capital loans and the Subsidiarys short-term loans that were received from Damiano Investments BV.,
Netherland (Notes 20, 22 and 25).
8. OTHER RECEIVABLES
2012
US$
Third parties :
Receivables from purchase discounts
Receivables from import clearance
MESOP receivables
Receivables from employees
Interest receivables on time deposit
Others
Other third parties :

Operational Advances to :
PT Wastra Indah
PT Texmaco Perkasa Engineering Tbk
PT Wahana Perkasa Auto Jaya
PT Sumatex Subur
PT Texmaco Taman Synthetics
Drapper Texmaco Inc. Co., America
Norfil Ltd., England
PT Bina Prima Perdana
Commonwealth Holdings Pte. Ltd.,
Singapore
PT Jaya Perkasa Engineering
PT Perkasa Heavyndo Engineering
PT Wismakarya Prasetya
PT Raja Busana Mahameru
PT Supermitory Utama Tbk
PT Saritex Jaya Swasti
PT Merauke Rayon Raya
PT Devrindo Widya
PT Perkasa Indobaja
Carried forward
49
2011
US$
2010
US$
646,363
144,976
341,499
33,612
4,486
369,615
225,314
190,169
38,283
735
291,902
116,174
93,509
201
282,985
1,540,551
746,403
492,869
15,812,049
5,679,940
5,579,991
3,192,784
3,094,847
2,065,103
728,191
583,812
15,823,861
5,694,585
5,579,991
3,192,784
3,114,230
2,065,103
728,191
515,892
18,248,643
8,855,883
5,650,035
3,811,313
4,123,251
2,065,103
728,191
496,867
442,916
194,587
181,639
136,945
93,407
68,868
49,883
25,434
15,816
496,867
472,320
194,587
193,698
136,945
93,407
72,199
49,883
25,434
15,816
496,867
209,491
3,423,049
287,251
737,959
49,883
36,957
101,539
38,443,079
38,465,793
48,825,415

8. OTHER RECEIVABLES (Continued)
Brought forward
PT Perkasa Indosteel
PT Wahana Jaya Perkasa
PT Sarana Daycrown Industri
PT Bina Peranan Busana
PT Citra Indah Textile
PT Mutiara Persada Inti
Polysindo (UK) Ltd., England
Coastal Group Ltd., South Africa
PT Ungaran Sari Garments
Polysindo (USA) Inc., America
PT Elok Prima Mitra Busana
PT Citra Abadi Sejati
PT Cipta Busana Jaya
PT Kreasi Indah Textile
PT Busana Perkasa Garments
PT Mahkota Indah Sentosa
2012
US$
2011
US$
2010
US$
38,443,079
38,465,793
48,825,415
13,327
11,102
11,102
2,336
985
13,327
11,102
11,102
2,336
985
173,041
11,102
11,102
2,336
2,030
3,231,099
2,471,054
867,530
309,316
266,231
217,937
150,638
97,725
81,050
45,777
42,022
Total
38,481,931
(36,721,575)
38,504,645
(36,721,575)
56,805,405
(56,805,405)
Net
1,760,356
1,783,070
Total
3,300,907
2,529,473
492,869
Other receivables from these above companies represent the loans and advances for working capital
purposes. The loans and advances are not subject to interest and have no terms of repayment. Until
now, these Companies above are unable to pay their payables to the Company and its Subsidiaries due
to their financial difficulties. Most of the companies have already stopped operations and are still
under the restructuring program with PT Perusahaan Pengelola Asset (PPA). As of March 2013, the
debt restructuring program has not yet been completed.
Changes in the allowance for impairment are as follows :
2012
US$
Beginning balance
Addition
Deduction
36,721,575
Ending balance
36,721,575
50
2011
US$
56,805,405
(20,053,331)
(30,499)
36,721,575
2010
US$
56,771,705
33,700
56,805,405

8. OTHER RECEIVABLES (Continued)

Deductions in allowance for impairment in 2011 of US$ 30,499 (equivalent to Rp 274,213,845) was a
reversal of allowance for impairment due to the collectible, and are presented as part of the
miscellaneous income (expense), net in the consolidated statements of comprehensive income (Note
44).
Additions in allowance for impairment in 2010 of US$ 33,700 (equivalent to Rp 303,000,000) was
recognized due to the uncollectible other receivables, and are presented as part of the general and
administrative expenses in the consolidated statements of comprehensive income.
MESOP receivables are due to loans given to selected employees for purchasing the Companys
shares on the MESOP programme (Note 30). These amounts are being recovered from the employees
over a period.
Other receivables from employees represent advances to employees. These advances are not subject to
interest and the payments are made based on the terms of the repayment schedule.
All amounts of other receivables have been reviewed for indication of impairment. Based on the
review of the status of individual other receivables, the Company and its Subsidiaries managements
believe that the impairment of other receivables are adequate to cover possible losses on uncollectible
other receivables.
The details of other receivables based on currencies are as follows :
2012
US$
United States Dollars
Rupiah
Rp 20,275,727,220 in 2012,
Rp 18,212,026,112 in 2011, and
Rp 4,431,385,179 in 2010
Total
2011
US$
2010
US$
37,925,716
37,242,664
56,805,405
2,096,766
2,008,384
492,869
40,022,482
39,251,048
57,298,274
The net carrying value of other receivable are considered a reasonable approximation of fair value.
51

9. OTHER CURRENT FINANCIAL ASSETS

This account consists of :
2012
US$
Time deposits :
Third party :
Deutsche Bank, Jakarta
Bank guarantees / SBLC
Security deposits :
Third parties :
Security deposit for electricity
Security deposit for rental
Others
Total refundable deposits
Total
2011
US$
2010
US$
827,301
330,834
111,222
6,654,903
5,483,630
2,696,000
181,489
51,357
5,758
193,538
54,361
4,982
195,195
48,183
5,025
238,604
252,881
248,403
7,720,808
6,067,345
3,055,625
a. Time Deposits
In 2012, time deposit with Deutsche Bank, Jakarta of Rp 2,000,000,000 (equivalent to

US$ 206,825) represents one year time deposit with interest rate of 5.00% per annum, due on
September 30, 2013.

September 6, 2013.

May 24, 2013.
In 2012 and 2011, time deposit with Deutsche Bank, Jakarta of Rp 2,000,000,000 (equivalent
to US$ 206,825 and US$ 220,556) represents one year time deposit with interest rate of 5.80%
per annum, due on December 10, 2013.

May 20, 2012. The time deposit is liquidated on May 21, 2012.
52

9. OTHER CURRENT FINANCIAL ASSETS (Continued)

a. Time Deposits (Continued)

May 18, 2011. The time deposit is liquidated on May 18, 2011.
b. Bank Guarantees / SBLC

Based on the purchase and sale gas agreement No. 001016.PK/HK.02/USH/2010 between the
Company, PT Perusahaan Gas Negara (Persero) and PT Wismakarya Prasetya, the Company
should provide the bank guarantee for gas supplies equivalent to approximately two months
consumption value and the balance of gas. As of December 31, 2012, 2011 and 2010, the
Company provided the bank guarantee (SBLC) through Deutsche Bank, Jakarta for an amount
equal to US$ 3,793,043 plus Rp 16,498,800,000 (equivalent to US$ 5,499,227), US$ 2,915,282
plus Rp 14,248,812,000 (or equivalent with 4,486,611) and US$ 1,466,368 plus Rp 7,124,400,000
(or equivalent with US$ 2,258,760), respectively representing 2 months consumption. The bank
guarantees still have terms of 3 (three) and 9 (nine) months after the reporting date and will due on
March 31, 2013 and September 30, 2013. In order to obtain the SBLC, the Company deposited an
amount equal to US$ 6,654,903, US$ 5,483,630 and US$ 2,696,000 as of December 31, 2012,
2011 and 2010 in Deutsche Bank, Hong Kong as collateral through Kyoa account. The collateral
represents approximately 120% of SBLC amount.
The details of other current financial assets based on currencies are as follows :
2012
US$
2011
US$
2010
US$
6,661,003
5,489,730
2,696,000
Rupiah
Rp 10,248,315,332 in 2012,
Rp 5,237,815,332 in 2011, and
Rp 3,233,390,432 in 2010
1,059,805
577,615
359,625
7,720,808
6,067,345
3,055,625
Total
No other current financial assets are placed with the related parties.
The net carrying value of other current financial assets is considered a reasonable approximation of
fair value.
53

10. INVENTORIES
2012
US$
2011
US$
2010
US$
Finished goods
Work in process
Raw materials
Indirect materials
34,787,985
6,073,039
19,078,632
20,014,977
35,079,711
6,781,122
28,114,454
17,702,072
19,839,474
4,824,283
10,607,108
16,126,321
Total
79,954,633
87,677,359
51,397,186
79,954,633
87,677,359
51,397,186
Net
Based on the review of the physical condition of the inventories at the end of each year, the Company
and its Subsidiaries management believe that no allowance for impairment is deemed necessary.
As at December 31, 2012, 2011 and 2010, the Companys inventories are covered by insurance with
PT Asuransi Indrapura against fire loss and other risks totaling US$ 79,500,000, US$ 68,000,000 and
US$ 51,000,000, respectively, which in the opinion of the management is adequate to cover losses
arising from such risks. As at December 31, 2010, the Subsidiaries inventories were not covered by
insurance against fire loss and other risks.
In 2012 and 2011, all inventories were used as collateral for the Companys bank loans and working
capital loans that were received from Damiano Investments BV., Netherland (Notes 20 and 25). And
in 2010, all inventories were used as collateral for the Companys bank loans, working capital loans
and the Subsidiarys short-term loans received from Damiano Investments BV., Netherland (Notes 20,
22 and 25).
11. PURCHASE ADVANCES

2012
US$
Third parties :
Purchase of property, plant and equipments
Purchase of inventories
Purchase of turbines spareparts
Other third party :

PT Wismakarya Prasetya
Total
54
2011
US$
2010
US$
1,865,844
4,680,032
1,109,367
5,462,897
4,494,903
860,912
2,860,793
3,403,251
127,212
7,655,243
10,818,712
6,391,256
26,949,949
27,028,158
25,982,098
34,605,192
37,846,870
32,373,354

11 PURCHASE ADVANCES (Continued)

In 2012, total purchases advance of property, plant and equipments of US$ 1,865,844 (equivalent to
Rp 17,513,121,317) represents the balance in connection with the purchases of machineries and
equipments with total amounts of US$ 1,055,555 (equivalent to Rp 10,065,798,027) in filament yarn
division and the purchases of fiber machineries and equipments for expansion with total amounts of
US$ 810,289 (equivalent to Rp 7,447,323,290). The machineries and equipments will be received in
2013.
In 2011, total purchases advance of property, plant and equipments of US$ 5,462,897 (equivalent to
equipments with total amounts of US$ 1,843,567 (equivalent to Rp 16,717,469,383) in filament yarn
division and the purchases of fiber machineries and equipments for expansion with total amounts of
US$ 3,619,330 (equivalent to Rp 32,820,084,486). The machineries and equipments had been received
in 2012.
In 2010, total purchase advances of property, plant and equipments of US$ 2,860,793 (equivalent to
equipments with total amounts of US$ 608,052 (equivalent to Rp 5,466,999,072) in filament yarn
division and the expansion for Batch Poly (chips) with total amounts of US$ 2,252,741 (equivalent to
Rp 20,254,390,000). The machineries and equipments had been received in April 2011 and May 2011.
The payment made by the Company to PT Wismakarya Prasetya in excess of the invoice amount in
treated as advance payment to PT Wismakarya Prasetya in line with the agreement between
PT Wismakarya Prasetya and the Company on November 16, 2006, and the working capital provided
to PT Wismakarya Prasetya in the past for the payment of its old dues to PT Perusahaan Gas Negara
(PGN) or PT Perusahaan Listrik Negara (PLN) and taxation.
12. PREPAID EXPENSES

2012
US$
Prepaid insurance
Prepaid rent
Total
55
2011
US$
2010
US$
1,061,627
40,000
1,081,786
88,000
850,592
43,572
1,101,627
1,169,786
894,164

13. ADVANCES FOR INVESTMENT IN A JOINT VENTURE

This account consist of advances for the Companys investment in land to be used for a joint venture
project between the Company and Eastman Kodak Company, USA to manufacture special types of
polyester chips and fiber in Karawang - West Java. Total advances represent 17% of the joint
ventures subscribed capital. However the necessity for continuing with the joint venture is being
assessed by both joint venture partners. As there is no possibility of the start-up this venture, it is
thought fit to provide impairment for this equivalent amount in 2010.
14. NON-TRADE RECEIVABLES FROM RELATED PARTIES

2012
US$
Total
Net
2011
US$
2010
US$
106,410,712
38,025,981
106,410,712
40,548,285
52,944,090
144,436,693
(111,962,653)
146,958,997
(111,962,653)
52,944,090
(5,551,941)
32,474,040
34,996,344
47,392,149
Non-trade receivables from PT Multikarsa Investama represent the cash receipts from AR
International Limited, Hong Kong of Rp 51,421,394,625 (equivalent to US$ 5,317,621 in 2012,
US$ 5,670,643 in 2011 and US$ 5,719,208 in 2010) due to refund on the Companys advances for the
purchase of property, plant and equipment (machinery and equipment). The remaining balance of US$
32,708,360, US$ 34,877,642 and US$ 47,224,882, respectively as of December 31, 2012, 2011 and
2010 represents advance payments for salary and other expenses.
Changes in the allowance for impairment are as follows :
2012
US$
Beginning balance
Movement during the period :
Addition
Deduction
111,962,653
Ending balance
111,962,653
2011
US$
5,551,941
106,410,712
111,962,653
2010
US$
5,551,941
5,551,941
Addition in allowance for impairment in 2011 of US$ 106,410,712, which were recognized as
additional of allowance for impairment due to the uncollectible non-trade receivables from
PT Texmaco Jaya Tbk (under bankruptcy), and and has been eliminated with the discountinued
operations financial statements from Subsidiary (Note 45).
56

14. NON-TRADE RECEIVABLES FROM RELATED PARTIES (Continued)

Based on the review of the status of the non-trade receivables from related parties, management
believes that the carrying value is a reasonable approximation of fair value. The impairment was not
provided with properly since the related party, PT Multikarsa Investama, is under the debt
restructuring program and the settlement of the non-trade receivables from related parties will be done
when the debt restructuring is completed.
The details of non-trade receivables from related parties based on currencies are as follows :
2012
US$
Rupiah
Rp 339,799,791,085 in 2012,
Rp 341,518,009,452 in 2011, and
Rp 450,068,726,754 in 2010
Total
2011
US$
2010
US$
109,297,108
109,297,108
2,886,396
35,139,585
37,661,889
50,057,694
144,436,693
146,958,997
52,944,090
15. OTHER NON-CURRENT FINANCIAL ASSETS

2012
US$
2011
US$
2010
US$
Restricted Cash In Banks :

IBRA (PPA) :
PT Bank Dharmala
Rupiah account
2,799
2,985
7,125
402,735
702,330
429,470
702,330
619,467
1,272,458
PT Bank Papan Sejahtera

Rupiah account
3,863
4,120
4,155
PT Bank Umum Nasional

US Dollar account
1,927
1,927
1,927
57
61
62
1,113,711
1,140,893
1,905,194
PT Bank Putera Multikarsa

Rupiah account
US Dollar account
PT Bank Asia Pacific

Rupiah account
Total
57

15. OTHER NON-CURRENT FINANCIAL ASSETS (Continued)

As the Company and its Subsidiaries are under restructuring process with the Indonesian Bank
Restructuring Agency (IBRA), the aggregate balances of cash in banks were restricted by IBRA.
The Indonesian government through the Indonesian Bank Restructuring Agency (IBRA) suspended the
bank operating licences of PT Bank Putera Multikarsa, a related party, on January 28, 2000; PT Bank
Dharmala, PT Bank Asia Pacific and PT Bank Papan Sejahtera on March 13, 1999; and PT Bank
Umum Nasional on August 21, 1998. As a result, the balance of bank as of December 31, 2012, 2011
and 2010 amounting to US$ 1,113,711, US$ 1,140,893 and US$ 1,905,194, respectively, is shown as
other non-current financial assets in the consolidated statements of financial position.
Deduction in 2011 represents the deduction of restricted cash in banks which financial statements
were no longer consolidated in 2011 due to the Subsidiary (PT Texmaco Jaya Tbk) is stated at
bankruptcy and insolvency so it caused that the Company have lost of control (Note 45).
The Company and its Subsidiaries management determined that the restricted cash in banks do not
need impaired, because the outstanding balance of restricted cash in banks will be settled upon
Company and its Subsidiaries loan repayment or upon completion of the restructuring program with
the creditors and PPA. The net carrying value of restricted cash in banks is considered a reasonable
approximation of fair value.
16. PROPERTY, PLANT AND EQUIPMENT

2012
US$
Carrying cost :
Direct acquisition
Assets under finance lease
Total carrying cost
Accumulated depreciation :
Direct acquisition
Assets under finance lease
Total accumulated depreciation
Book value
Contruction in progress
Total
2011
US$
2010
US$
1,784,685,143
1,770,504,803
2,185,541,688
13,071,160
1,784,685,143
1,770,504,803
2,198,612,848
1,658,522,816
1,588,852,556
1,882,878,941
13,071,160
1,658,522,816
1,588,852,556
1,895,950,101
126,162,327
181,652,247
302,662,747
3,232,319
3,184,876
1,798,072
129,394,646
184,837,123
304,460,819
58

16. PROPERTY, PLANT AND EQUIPMENT (Continued)

The details of property, plant and equipment are as follows :
Direct acquisition :
2 0 1 2
Beginning
US$
Carrying cost :
Land
Building and improvement
Office equipment
Office equipment
Book value
3,864,156
107,454
18,541
1,770,504,803
3,990,151
39,518,357
1,541,723,603
4,756,473
2,854,123
1,767,285
67,807,126
93,275
2,574
41,285,642
1,609,530,729
4,849,748
2,856,697
1,588,852,556
69,670,260
1,658,522,816
181,652,247
Beginning
US$
Office equipment
Store equipment
Book value
10,190,189
10,190,189
Ending
US$
15,529,702
47,221,395
1,699,859,778
5,038,480
2,855,448
2 0 1 1
Carrying cost :
Land
Office equipment
Store equipment
Changes during the current period

Addition
Deduction
Reclassification
US$
US$
US$
15,529,702
47,221,395
1,713,914,123
5,145,934
2,873,989
1,784,685,143
126,162,327

Addition
Deduction
Reclassification
US$
US$
US$
Ending
US$
47,994,266
87,838,121
2,028,307,217
8,529,463
10,800,334
2,072,287
211,434
5,562,433
46,934
304
32,464,564
40,828,160
335,807,944
3,537,917
7,945,190
2,072,287
1,798,072
15,529,702
47,221,395
1,699,859,778
5,038,480
2,855,448
2,185,541,688
5,821,105
422,656,062
1,798,072
1,770,504,803
68,494,097
1,793,371,132
8,144,799
10,796,626
2,072,287
3,432,065
83,975,302
98,534
1,659
32,407,805
335,622,831
3,486,860
7,944,162
2,072,287
39,518,357
1,541,723,603
4,756,473
2,854,123
1,882,878,941
87,507,560
381,533,945
1,588,852,556
302,662,747
181,652,247
59


2010
Carrying cost :
Land
Office equipment
Store equipment
Office equipment
Store equipment
Book value
Beginning
US$

Addition
Deduction
Reclassification
US$
US$
US$
Ending
US$
47,994,266
87,838,121
2,026,820,002
8,412,632
10,798,613
2,072,287
1,487,215
342,333
1,721
225,502
47,994,266
87,838,121
2,028,307,217
8,529,463
10,800,334
2,072,287
2,183,935,921
1,831,269
225,502
2,185,541,688
64,455,940
1,709,318,037
8,313,091
10,791,548
2,072,287
4,038,157
84,053,095
57,210
5,078
225,502
68,494,097
1,793,371,132
8,144,799
10,796,626
2,072,287
1,794,950,903
88,153,540
225,502
1,882,878,941
388,985,018
302,662,747
Assets under finance lease :

2011
Carrying cost :
Book value
2010
Carrying cost :
Beginning
US$

Addition
Deduction
Reclassification
US$
US$
US$
Ending
US$
13,071,160
13,071,160
13,071,160
13,071,160
13,071,160
13,071,160
13,071,160
13,071,160
Beginning
US$

Addition
Deduction
Reclassification
US$
US$
US$
Ending
US$
13,071,160
13,071,160
13,071,160
13,071,160
60


2010
Beginning
US$
Book value

Addition
Deduction
Reclassification
US$
US$
US$
Ending
US$
13,071,160
13,071,160
13,071,160
13,071,160
Construction in progress :
2 0 1 2
Beginning
US$
Carrying cost :
3,184,876
2 0 1 1
Beginning
US$
Carrying cost :
1,798,072
2 0 1 0
Beginning
US$
Carrying cost :

Addition
Deduction
Reclassification
US$
US$
US$
10,237,632
Ending
US$
10,190,189
3,232,319

Addition
Deduction
Reclassification
US$
US$
US$
3,184,876
Ending
US$
1,798,072
3,184,876

Addition
Deduction
Reclassification
US$
US$
US$
1,798,072
Ending
US$
2012
US$
1,798,072
2011
US$
Depreciation expenses are allocated to :

Direct acquisition :
Continued operations :
Manufacturing expense (Note 40)
General and administrative expenses (Note 42)
Discountinued operations (Note 45) :

Manufacturing expense
Other income (charges)
Total
69,574,411
95,849
86,134,534
91,527
69,670,260
86,226,061
48,416
8,665
1,224,418
1,281,499
69,670,260
61
87,507,560


In 2012 and 2011, the Company own several pieces of land located in Karawang and Kendal
amounted to 751,357.40 square meters with certificate Building Use Right (Hak Guna Bangunan or
HGB) for a period of 20 30 years which will be expired between 2006 and 2029. And in 2010, the
Company and its Subsidiary own several pieces of land located in Karawang, Kendal and Pemalang
amounted to 1,265,486.40 square meters with certificate Building Use Right (Hak Guna Bangunan or
HGB) for a period of 20 30 years which will be expired between 2006 and 2029. For the ownership
certificate of the land were located in Semarang of 78,111 square meters have been extended up to
November 29, 2027. Management believes that there will be no difficulty in the extension of the
certificate of landrights since all the landrights were acquired legally and supported by sufficient
evidence of ownership. In 2002 and 2001, the addition of land of Rp 220,685,580 and
Rp 1,753,645,426 consist of land located in Semarang of 24,120 square meters and in Karawang
1,962.60 square meters. The ownership certificate processing of the land is still in progress.
Deduction in 2011 represents the deduction of property, plant and equipments which financial
statements were no longer consolidated in 2011 due to the Subsidiary (PT Texmaco Jaya Tbk) is
stated at bankruptcy and insolvency so it caused that the Company have lost of control (Note 45).
The part of the Companys land in Karawang, with the certificate Building Use Right (HGB) No. 13
of 33,630 square meters and with the certificate Building Use Right (HGB) No. 14 of 35,380 square
meters, are pledged to PT Bank Negara Indonesia (BNI) or PT Bina Prima Perdana (BPP) towards
secured debts PT Texmaco Jaya Tbk (in bankruptcy) (Note 49).
The land of 166 square meters amounted to US$ 68,347 and on building amounted to US$ 96,441
represent the acquisition cost of the Companys land and building in Bandung in 1995. In 1995, the
Company purchased them at total amount of Rp 380,000,000 (the conversion rate of US$ 1 is
Rp 2,360). The fair value of land (166 sqm) based on NJOP (Tax Object Market Value) is
Rp 514,600,000 (equivalent to US$ 53,216) and the fair value of building (529 sqm) based on NJOP is
Rp 726,124,000 (equivalent to US$ 75,090). The value of building is fully depreciated.
In 2012, the part of additional machinery and equipment amounted to US$ 932,483 (equivalent to
Rp 8,519,168,000) represent the expenditure for overhaul PTA machinery and will be extended the
useful lives of machinery and equipment of 3 (three) years.
Machinery and equipment construction in progress as of December 31, 2012 of US$ 3,232,319 are
connected with the increasing of the Companys filament yarn. Up to December 31, 2012, the
percentage of completion for this project is approximately 33% and will be completed in 2013.
Management believes that there is no impediment to the completion of the contruction in progress.
connected with the increasing of the Companys filament yarn and fiber capacity. These have been
completed in 2012.
connected with the Companys development in the new product yarn (SILKRAs branded) and the
Companys Batch Poly capacity. These have been completed in August 2011 and December 2011,
respectively.
62


All of the Company and its Subsidiaries property, plant and equipment, except land were insured with
PT Asuransi Rama Satria Wibawa as lead insurance company from loss and other risks including
earthquake valuing in total US$ 605,070,000 plus Rp 609,000,000 as of December 31, 2012,
US$ 561,520,000 as of December 31, 2011 and US$ 571,850,000 plus Rp 2,813,350,000 as of
December 31, 2010, respectively. The Companys management, the sum insured as stated above is
adequate to cover possible losses arising from such risks.
The fair value of land (762,538 sqm) based on NJOP (Tax Object Market Value) is
Rp 224,888,000,000 (equivalent to US$ 23,256,256) and the fair value of building (210,582 sqm)
based on NJOP is Rp 219,324,000,000 (US$ 22,680,869).
Based on the appraisals report of KJPP Wilson and Rekan dated January 30, 2012, total market value
of the Companys land, building and improvement were Rp 444,212,000,000. And based on the
appraisals report of Nirboyo A., Dewi A. & Rekan dated January 19, 2012, total market value of
machinery and transportation equipment in Karawang is US$ 274,860,902.
Based on the appraisals report of Nirboyo A., Dewi A. & Rekan dated January 20, 2010, total market
value of the Companys property, plant and equipment (except for office equipments) are
US$ 591,782,199.
The valuation, which conforms to International Valuation Standards, was determined by reference to
recent market transactions on arms length terms. Appraisal method used is Market Data Approach
Methods. Elements used in data comparison process to determine assets fair value are as follows :
a.
b.
c.
d.
e.
Type of right on property.

Market condition
Location
Land and Physical characteristics
Income producing characteristics
All of property, plant and equipment as at reporting date are fully used to support the Companys
operation activities. As of December 31, 2012 and 2011, total acquisition cost of property, plant and
equipment with zero net carrying amounts (fully depreciated assets) amounted to US$ 742,492,712
and US$ 702,128,695, respectively, but the company is still used them for their operational.
Management believes that the estimated recoverable amounts of property, plant and equipment exceed
their carrying values and, hence, no impairment of property, plant and equipment should be recorded
as at the reporting date.
In 2012 and 2011, All of the Companys land, machinery and equipment are used as collateral for
secured bond holders and working capital loans from Damiano Investments BV., Netherland and
PT Bina Prima Perdana (BPP) / PT Perusahaan Pengelola Asset (PPA) (Notes 21 and 25).
63


And in 2010, All of the Company and Subsidiaries land, machinery and equipment are used as
collateral for the secured bond holders, working capital loans and notes payable from Damiano
Investments BV., Netherland and PT Bina Prima Perdana (BPP) / PT Perusahaan Pengelola Asset
(PPA) (Notes 21, 23 and 25).
17. INTANGIBLE ASSETS

2012
US$
Legal processing of landrights
Less : accumulated amortization
Net
2011
US$
2010
US$
13,247
(497)
12,750
497
Amortization expense are allocated to :

General and administrative expenses (Note 42)
Intangible assets represents legal cost associated with the acquisition of landrights for land located at
Bandung (166 square meters) and is amortized over the useful life (Hak Guna Bangunan) of 20 years
18. TRADE PAYABLES

This account consist of :
Third parties :
Local suppliers
Foreign suppliers
2012
US$
2011
US$
2010
US$
10,537,328
12,405,006
16,123,355
7,675,528
12,313,277
12,498,234
23,798,883
24,811,511
22,942,334
Total
64

18. TRADE PAYABLES (Continued)

A summary of the aging of trade payables to third parties based on the date of invoice is as follows :
Up to 1 month
> 1 month 3 months
> 3 months 6 months
> 6 months 1 year
> 1 year
Total
2012
US$
2011
US$
2010
US$
18,541,840
2,697,906
565,265
612,648
524,675
19,161,428
2,811,274
356,290
492,350
977,541
15,659,849
2,464,002
529,857
426,336
5,731,467
22,942,334
23,798,883
24,811,511
The details of trade payables to third parties based on currencies are as follows :
2012
US$
2011
US$
2010
US$
18,551,978
19,653,155
11,091,004
Rupiah
Rp 30,425,613,348 in 2012,
Rp 35,088,919,356 in 2011, and
Rp 117,868,634,044 in 2010
3,146,392
3,869,532
13,109,625
European Euro
EUR 284,392 in 2012,
EUR 136,455 in 2011 and
EUR 419,905 in 2010
8376,738
176,648
558,379
55,368
48,770
17,509
25,665
18,216
22,817
25,113
15,546
22,153,293
23,798,883
24,810,279
Japan Yen
Yen 4,780,473 in 2012,
Yen 3,779,861 in 2011, and
Yen 1,431,156 in 2010
Great British Poundsterling
GBP 16,660 in 2011 and GBP 11,788 in 2010
Singapore Dolar
SGD 27,904 in 2012, SGD 32,654 in 2011
and SGD 20,022 in 2010
Carried forward
65

18. TRADE PAYABLES (Continued)
Brought forward
2012
US$
2011
US$
2010
US$
22,153,293
23,798,883
24,810,279
Swedish Krona
SEK 5,128,579 in 2012
789,041
Swiss Franc
CHF 1,154 in 2010
Total
1,232
22,942,334
23,798,883
24,811,511
2012
US$
2011
US$
2010
US$
Related party :
7,150
A summary of the aging of trade payables to related party based on the date of invoice is as follows :
2012
US$
7,150
Up to 1 month
2011
US$
2010
US$
The details of trade payables to related party based on currencies are as follows :
2012
US$
Rupiah
Rp 69,142,248 in 2012
7,150
2011
US$
2010
US$
Trade payables to third parties local and foreign suppliers represent payables for purchase of raw
materials and indirect materials. These are non-interest bearing with clear terms of repayments.
The fair value of these short-term financial liabilities is not individually determined as the carrying
amount is considered a reasonable approximation of fair value.
There is no guarantee given on the trade payables.
66

19. ACCRUED EXPENSES

2012
US$
Interest
Electricity
Transportation
Salary
Rent
Professional fee
Others
39,768,727
1,925,678
948,570
365,393
117,671
81,000
112,131
Total
43,319,170
2011
US$
42,083,898
2,058,155
748,081
349,969
133,709
75,000
157,487
45,606,299
2010
US$
72,752,046
2,437,592
923,795
962,337
122,107
70,000
108,029
77,375,906
The accrued interest of certain secured debts, short-term loans and notes payable represent interest
expenses accrued from the year 2001, 2002 and 2003, while all the unpaid and accrued interest up to
2000 according to the MOA had been waived. The interest expense after the year 2003 has not been
recorded by the Company and its Subsidiaries due to the restructuring process that has not yet been
completed (Note 21).
In February 2010, PT Perusahaan Listrik Negara (Persero) had filed a petition in The Hight Court of
Central Java (Pengadilan Tinggi Jawa Tengah) to the Subsidiary for the recovery of their outstanding
on electricity bill for December 2003 up to September 2004 amounting to Rp 2,821,800,525. Until
August 19, 2011, the outstanding payable has not yet paid by the Subsidiary.
Deduction in 2011 represents the deduction of accrued expenses which financial statements were no
longer consolidated in 2011 due to the Subsidiary (PT Texmaco Jaya Tbk) is stated at bankruptcy and
insolvency so it caused that the Company have lost of control (Note 45).
The details of accrued expenses based on currencies are as follows :
2012
US$
Rupiah
Rp 413,168,541,805 in 2012,
Rp 411,036,714,332 in 2011, and
Rp 517,758,000,723 in 2010
Total
2011
US$
2010
US$
592,330
278,033
19,789,653
42,726,840
45,328,266
57,586,253
43,319,170
45,606,299
77,375,906
amount is considered reasonable approximation of fair value.
67

20. BANK LOANS
Related Party :
Damiano Investment BV., Netherland
2012
US$
2011
US$
2010
US$
78,752,462
70,339,624
48,046,644
According to the amendment loan agreement dated March 3, 2006 and August 31, 2006 between the
Company (Borrower), and Damiano Investments BV., Netherland (Lender), and PT Ferrier Hodgson
(Monitoring Agent), the lender agreed to provide the Letter of Credit facility in the aggregate principal
amount of US$ 50,000,000. Accordingly, the Company can also use the lender name as guarantor for
opening Letter of Credit in Barclays Bank Plc, Hongkong (Barclays). In addition, the Company should
pay a financing fee of 2.25% per month on the aggregate amounts of the facility in Barclays to
Damiano Investments BV., Netherland.
Based on the amendment loan agreement dated January 1, 2009 between the Company (Borrower),
and Damiano Investments BV., Netherland (Lender), and PT Ferrier Hodgson (Monitoring Agent),
from April 3, 2009 onwards, any and all references to Barclays Letter of Credit Facility shall be
moved to Deutsche Bank AG : Letter of Credit Facility. The fee charges by Damiano Investments
BV., Netherland on this facility was 1.50% per month.
The Letter of Credit facility always changed based on the Companys requirements for purchasing of
raw materials. Based on the recent amendment loan agreement dated April 8, 2011 between the
Company (Borrower) and Damiano Investments BV., Netherland (Lender), and PT Ferrier Hodgson
(Monitoring Agent), the lender agreed to increase the Letter of Credit facility in the aggregate
principal amount from US$ 50,000,000 to US$ 80,000,000.
Further, based on the recent amendment loan agreement on July 2012 between the Company
(Borrower) and Damiano Investments BV., Netherland (Lender), and PT Ferrier Hodgson (Monitoring
Agent), the lender agreed to increase the Letter of Credit facility in the aggregate principal amount
from US$ 80,000,000 to US$ 100,000,000.
The availability of facility as of December 31, 2012, 2011 and 2010 were US$ 84,019,693,
US$ 76,934,921 and US$ 50,717,707, respectively. And the letter of credit is used by the Company to
purchase of raw materials totaling US$ 78,752,462 in 2012, US$ 70,339,624 in 2011 and
US$ 48,046,644 in 2010, respectively. This is a revolving facility. All bank loans are denominated in
US Dollar.
For the years ended December 31, 2012 and 2011, a fee on Bank Loan has been recognized in the
amount of US$ 13,969,873 and US$ 10,433,384, respectively, and is presented as part of finance costs
accounts in the consolidated statements of comprehensive income (Note 43).
68

20. BANK LOANS (Continued)

All bank loans from Damiano Investments BV., Netherland are collateralized by the Companys trade
receivables and inventories (Notes 7 and 10).
21. SECURED DEBTS

2012
US$
Bonds :
13% Guaranteed Secured Notes
Secured Floating Rate Notes
9.375% Guaranteed Secured Notes
11.375% Guaranted Secured Notes
2011
US$
2010
US$
122,526,000
50,000,000
250,000,000
260,000,000
122,526,000
50,000,000
250,000,000
260,000,000
122,526,000
50,000,000
250,000,000
260,000,000
682,526,000
682,526,000
682,526,000
134,703,610
29,055,834
1,125,826
34,756,139
143,646,218
29,055,834
1,100,204
38,664,463
144,876,422
29,055,834
1,130,119
36,819,558
199,641,409
212,466,719
211,881,933
9,897,556
9,672,290
9,935,285
Damiano Investments BV., Netherland

(Ex. Union Europeene de CIC, Singapore)
EUR 5,941,395
7,870,573
7,691,440
7,900,575

(Ex. Credit Agricole Indosuez, Singapore)
12,117,088
12,117,088
12,117,088
3,303,097
3,303,097
3,303,097
33,188,314
32,783,915
33,256,045
PT Bina Prima Perdana

IDR 1,302,583,907,331
EUR 849,872
YEN 3,001,711,400
Banks
(Ex. PT Bank Finconesia)
EUR 7,471,539

(Ex. Bangkok Bank, Singapore)
69

21 SECURED DEBTS (Continued)
2012
US$
2011
US$
2010
US$
78,628,322
4,340,104
1,889,252
50,302
78,628,322
4,628,232
1,846,253
48,779
78,628,322
4,667,869
1,896,454
49,012
84,907,980
85,151,586
85,241,657
1,000,263,703
1,012,928,220
1,012,905,635
Ministry of Finance (Ex. BNI LC) :

IDR 41,968,807,083
EUR 1,426,173
CHF 45,902
Total secured debts
On November 30, 2001, the Company entered into Definitive Memorandum of Agreement (MOA)
with the noteholders regarding the restructuring plan of the Company. However, it has not yet been
executed by the Company and the MOA and automatically terminated. However, on March 14, 2007,
the Company has issued a new SDRP (Secured Debt Restructure Proposal) to its secured creditors for
the restructure of its Secured debts including the bonds. Up to March 2013, the Company has not
obtained the approval from the secured creditors, particularly from PPA (28% of total secured debt)
has not given their decision on restructuring settlement.
In July 2007, the Company submitted a Secured Debt Restructure Plan (SDRP) to its secured creditors
comprising of secured bond holders and PPA. However, PPA has not approved this SDRP till March
2012, though the same is being supported by Damiano Investments BV., Netherland. Damiano
Investments BV., Netherland currently hold approximately 93% of the secured bonds and banks, other
than PPA. In November 2010 and December 2010, PPA announced a Sale of Texmaco Assets and
Shares programme which includes the fixed assets held as security by PPA in the CompanySemarangs site. However for some reasons, the programme was later called off and cancelled.
A. 13% Guaranteed Secured Notes, US$ 122,526,000.
The Company issued US$ 125,000,000 Unsecured Senior Notes in June 1994 carrying an interest
rate of 13% per annum. The notes are due for repayment in 2001. In May 1996, the Company
offered to the holders of the said unsecured notes to exchange their notes with 13% Guaranteed
Senior Notes due in 2001 which were listed in Luxembourg Stock Exchanges and issued by PIFC
with the Company as the guarantor.
All holders of the unsecured notes exchanged their notes with the new secured notes except for the
holders of unsecured notes amounting to US$ 2,474,000. In August 1997, the Company paid part
of the 13% Unsecured Senior Notes amounting to US$ 1,250,000.
70

21 SECURED DEBTS (Continued)

B. Secured Floating Rates Notes, US$ 50,000,000.
In February 1996, PIFC, with the Company as a guarantor, issued the US$ 50,000,000 Secured
Floating Rate Notes which were listed in Luxembourg Stock Exchanges with carrying an interest
rate of 3% above LIBOR and were due in 1999.
C. 9.375% Guaranteed Secured Notes, US$ 250,000,000.
In July 1997, PIFC, with the Company as a guarantor, issued the US$ 250,000,000 Guaranteed
Secured Notes due in 2007 which were listed in Luxembourg Stock Exchange with carrying an
interest rate of 9.375% per annum. The proceeds from issuance of these notes were used to finance
a portion of phase I of the Companys expansion program.
D. 11.375% Guaranteed Secured Notes, US$ 260,000,000.
In June 1996, PIFC, with the Company as a guarantor, issued the US$ 260,000,000 Guaranteed
Secured Notes due in 2006 which were listed in Luxembourg Stock Exchange. The notes carry an
interest rate of 11.375% per annum. The proceeds from issuance of these notes were used to pay
off other debts and loans.
Currently all these notes have been delisted from Luxembourg Stock Exchanges and are secured by
liens of the collateral, which consist of real property, moveable assets (other than inventories) and
proceeds of collateral on a pari-passu basis with the other notes payable and obligations of the
Company (Note 16).
Loans to PT Bina Prima Perdana (BPP) represent loans from PT Bank Negara Indonesia (Persero) Tbk
which had been defaulted and transferred to IBRA. Further, pursuant to debt restructuring scheme in
Master Restructuring Agreement (MRA) dated May 23, 2001, in 2002 the Companys debts to IBRA
have been transferred to BPP. For this transfer, BPP issued Exchangeable Bond (EB) to IBRA. But, on
February 26, 2004, IBRA issued a letter of default notice to PT Bina Prima Perdana. The letter stated
that PT Bina Prima Perdana as the textile holding company had failed to pay the Exchangeable Bond
(EB) coupons due on August 18, 2003.
The Company did not recognize the interest expenses on secured debts since 2004 since the Company
is under restructuring process, and the interest payable will not be counted. As of December 31, 2012,
2011 and 2010, the Company had interest payable of Rp 380,648,007,290 (equivalent to
US$ 39,363,806 in 2012, US$ 41,977,063 in 2011 and US$ 42,336,560 in 2010) and was presented as
part of accrued expenses in the consolidated statements of financial position (Note 19).
71

21. SECURED DEBTS (Continued)

The breakdown of secured debts by currency is as follows:
2012
US$
2011
US$
2010
US$
805,630,341
805,630,341
805,630,341
European Euro
(EUR 15,688,979 in 2012, 2011 and 2010)
20,783,207
20,310,187
20,862,433
Japan Yen
(JPY 3,001,711,400 in 2012, 2011 and 2010)
34,756,139
38,664,463
36,819,558
50,302
48,779
49,012
139,043,714
148,274,450
149,544,291
1,000,263,703
1,012,928,220
1,012,905,635
Swiss Franc
(CHF 45,902 in 2012, 2011 and 2010)
Rupiah
(Rp 1,344,552,714,414 in 2012, 2011 and 2010)
Total
22. SHORTTERM LOANS

2012
US$
2011
US$
2010
US$
18,587,500
5,908,437
9,865
889,779
133,188
Catora International BV., Netherlands

Damiano Investments BV., Netherlands
400,000
200,000
Total working capital loans
26,128,769
Working capital loan facility :

PT Bina Prima Perdana :
Hong Kong Branch
Pekalongan Branch
(Rp 53,122,755,829)
Karawang Branch (Rp 88,695,795)
PT Bank Dharmala (Rp 8,000,000,000)
(Rp 1,197,490,480)
72

22. SHORTTERM LOANS (Continued)

2012
US$
2011
US$
2010
US$

PT Bank Duta (Rp 28,175,026,153)
3,133,692
1,670,669
Total
4,804,361
Others :
PT Bank Sumitomo Mitsui Indonesia
(US$ 198,595 and Rp 27,115,346,119)
1,906,484
3,214,427
Jumlah lain-lain
5,120,911
Total letter of credit facility
9,925,272
Total short-term loans
36,054,041
Letter of Credit facility :
Loans to PT Bina Prima Perdana (BPP) represent loans to PT Bank Negara Indonesia (Persero) Tbk,
PT Bank Dharmala and PT Bank Putera Multikarsa which have been default and transferred to IBRA.
Pursuant to the debt restructuring scheme of the Master Restructuring Agreement (MRA) dated May
23, 2001, the Subsidiaries debts to IBRA are to transferred to BPP in 2002. For this transfer, BPP
issued Exchangeable Bond (EB) to IBRA.
On November 30, 2001, the Subsidiary entered into Definitive Memorandum of Agreement (MOA)
with the bondholders and IBRA for restructuring plan of Subsidiary. However, it has not yet been
executed by the Subsidiary and the MOA could be automatically terminated.
On February 26, 2004, IBRA issued a letter of default notice to PT Bina Prima Perdana. The letter
stated that PT Bina Prima Perdana as the textile holding company has failed to pay the Exchangeable
Bond (EB) coupons due on August 18, 2003.
On February 27, 2004, IBRA was dissolved by the Government. The outstanding or unfinished affairs
under the handling of IBRA were transferred to a company called PT Perusahaan Pengelola Assets
(PPA) for further management and restructuring process under the supervision of the Ministry of
Finance.
The significant information relating to the loans are as follows :
73

22 SHORTTERM LOANS (Continued)

a. Working Capital Loan Facility
PT Bank Negara Indonesia (Persero) Tbk (BNI)
The Subsidiary did not recognize the interest expense incurred from the short-term loan from
PT Bank Negara Indonesia (Persero) Tbk (BNI) since 2004 due to the Subsidiary is under the
restructuring process, and the interest payables will not be counted. As of December 31, 2010, the
Subsidiary has interest payables of amounting to Rp 50,280,187,912 plus US$ 9,031,692.27
(equivalent to US$ 14,623,972), and was presented as part of accrued expenses in the consolidated
PT Bank Dharmala
PT Bank Dharmala since 2004 due to the Subsidiary is under the restructuring process, and the
interest payables will not be counted. As of December 31, 2010, the Subsidiary has interest
payables of Rp 7,856,714,054 (equivalent to US$ 873,842), and was presented as part of accrued
expenses in the consolidated statements of financial position.

PT Bank Putera Multikarsa since 2004 due to the Subsidiary is under the restructuring process,
and the interest payables will not be counted. As of December 31, 2010, the Subsidiary has
interest payable of Rp 98,149,297 (equivalent to US$ 10,916), and was presented as part of
accrued expenses in the consolidated statements of financial position.
Catora International BV., Netherlands

On January 27, 2006, the Subsidiary obtained a short term working capital loan facility amounting
US$ 500,000 from Catora International B.V., Netherlands (CIBV.) for the purchase of raw
materials (import and local) and to meet some of critical operational expenses such as wages,
electricity etc. This facility bears interest rate 18% p.a. with the final repayment due on
August 31, 2006, and is secured by inventories under fiduciary in favour of CIBV. At a minimal
amount of US$ 750,000. The facility had been amended on August 2006 to provide the Subsidiary
with total credit facility up to US$ 750,000 and the final repayment due on May 31, 2007. During
2007, the Company has paid US$ 200,000 on August 14, 2007 and US$ 100,000 on
September 13, 2007. During 2008, the Subsidiary has paid US$ 50,000 on April 9, 2008.
Subsequently, the loan was assigned in favour of Mr. Marimutu Sinivasan as per the assignment
agreement dated July 29, 2008.
74

22 SHORTTERM LOANS (Continued)
a. Working Capital Loan Facility (Continued)

Catora International BV., Netherlands (Continued)
As of December 31, 2010, the Subsidiary has not paid the remaining working capital loan
amounting to US$ 400,000 which is already due because of financial difficulties and cash flow
problem. This agreement has not yet been renewed.
As of December 31, 2010, the Subsidiary has interest payables were US$ 149,946 (equivalent with
Rp 1,348,164,450), and was presented as part of accrued expenses in the consolidated statements
of financial position.
For the period ended August 19, 2011, interest expense of short-term loans from Catora
International BV., Netherland amounted to US$ 51,333 (equivalent to Rp 425,399,333) and was
presented as part of discountinued operations financial statements from Subsidiary (Note 45).
Damiano Investment BV., Netherlands

Based on the loan agreement dated January 8, 2008 among the Subsidiary (Borrower), Damiano
Investments BV., Netherland (Lender), and PT Ferrier Hodgson (Monitoring Agent), the lender
agreed to provide working capital loan facility in the aggregate principal amount of
US$ 1,000,000. The interest chargeable in this loan is 25% per annum, repayable in six (6) months
after the date of execution or due on August 2008. On August 14, 2008 and September 1, 2008,
the Subsidiary has paid US$ 700,000 and US$ 100,000 respectively. As of December 31, 2011 and
2010, the Subsidiary has not paid the remaining balance of US$ 200,000 respectively due to
financial difficulties or cash flow problem.
For the period ended August 19, 2011, interest expense on short-term loans from Damiano
Investment BV., Netherland amounted to US$ 35,645 (equivalent to Rp 287,763,423) and was
presented as part of discountinued operations financial statements from Subsidiary (Note 45).
b. Letter of Credit Facility

PT Bank Negara Indonesia (Persero) Tbk (BNI)
In August 2000, the Subsidiary obtained Letter of Credit facilities from PT Bank Negara Indonesia
(Persero) Tbk (BNI) with a maximum credit of US$ 100,000,000 for importing raw materials,
supplies and consumable goods for textile and chemical industries. The Letter of Credit Facility
provided by BNI guaranteed by IBRA, was stopped by BNI in March 2003.
75


b. Letter of Credit Facility (Continued)
PT Bank Negara Indonesia (Persero) Tbk (BNI) (Continued)
PT Bank Negara Indonesia (Persero) Tbk (BNI) since 2004 due to the Subsidiary is under the
restructuring process, and the interest payables will not be counted. As of December 31, 2010, the
Subsidiary had interest payables of Rp 17,414,256,284 plus US$ 56,730.30 (equivalent to
US$ 1,993,585), respectively, and was presented as part of accrued expenses in the consolidated
PT Bank Duta and PT Bank Sumitomo Mitsui Indonesia

PT Bank Duta and PT Bank Sumitomo Mitsui Indonesia since 2004 due to the Subsidiary is under
the restructuring process, and the interest payables will not be counted. As of December 31, 2010,
the Subsidiary had interest payables of Rp 22,512,136,671 plus US$ 89,072.89 (equivalent to
US$ 2,592,925), and was presented as part of accrued expenses in the consolidated statements of
financial position.
The Letter of Credit facilities from PT Bank Duta and PT Bank Sumitomo Mitsui Indonesia are
categorized as secured debt to BPPN/PPA.

PT Bank Putera Multikarsa since 2004 due to the Subsidiary is under restructuring process, and
the interest payables will not be counted. As of December 31, 2010, the Subsidiary had interest
payables of US$ 73,997.97, and was presented as part of accrued expenses in the consolidated
The letter of credit facilities from PT Bank Putra Multikarsa is categorized as unsecured debt to
BPPN/PPA.
Deduction in 2011 represents the deduction of short-term loans which financial statements were no
76


The above short-term loans are collateralized by the Subsidiarys trade receivables, inventories,
property, plant and equipment, personal guarantees of the directors of the Subsidiary, and a pledge of
5,000,000 shares of the Subsidiary (Notes 7, 10 and 16).
23. NOTES PAYABLE

2012
US$
2011
US$
5,000,000
4,118,150
9,118,150
Others :
US Dollar
11,141,085
Total
Less : currently maturing of notes payable
20,259,235
(20,259,235 )
2012
2011
2010
18.75%
10.50%

US Dollar
Rupiah (Rp 37,026,286,647)
Long-term notes payable
Discounted interest rate :

Rupiah
US Dollar
2010
US$
Due to the suspension of the bank operations as noteholders in 1999, the loans have been transferred
to IBRA for administration. Pursuant to the debt restructuring scheme of the Master Restructuring
Agreement (MRA) dated May 23, 2001, the Subsidiarys debts to IBRA are to be transferred to a new
holding company (NewCo), PT Bina Prima Perdana in 2002. For this transfer, PT Bina Prima Perdana
issued Exchangeable Bond (EB) to IBRA.
The above notes payable are unsecured. The arranger of the notes payable is PT Asia Kapitalindo
Securities.
On February 26, 2004, IBRA issued a letter of default notice to PT Bina Prima Perdana. The letter
stated that PT Bina Prima Perdana as the textile holding company has failed to pay the Exchangeable
Bond (EB) coupons due on August 18, 2003.
77

23 NOTES PAYABLE (Continued)
On February 27, 2004, IBRA was dissolved by the Government. The outstanding or unfinished affairs
under the handling of IBRA were transferred to a company called PT Perusahaan Pengelola Assets
(PPA) for further management and restructuring process under the supervision of the Ministry of
Finance.
The Subsidiary did not recognize the interest expense incurred from the notes payable since 2004 due
to the Subsidiary is under restructuring process, and the interest payables will not be counted. As of
December 31, 2010, the Subsidiary has interest payables of US$ 732,349 plus Rp 3,082,246,608
(equivalent to US$ 1,075,164), and was presented as part of accrued expenses in the consolidated
Deduction in 2011 represents the deduction of notes payable which financial statements were no
The above notes payable are collateralized by the Subsidiarys property, plant and equipment (Note
16).
24. UNSECURED DEBTS AND NOTES PAYABLE

2012
US$
The Hongkong and Shanghai Banking
Corporation Limited
22,169,338
2011
US$
21,945,011
2010
US$
21,077,129
The Company has taking steps to implement the Composition Plan (Rencana Perdamaian) as approved
by the unsecured creditors of the Company and ratified by the Commercial Court. On September 29,
2006, the unsecured creditors comprising of Banks, PT Bina Prima Perdana, Leasing, and Notes stand
at US$ 18,670,630 was restructured into Fixed Rate Notes under custodian of The Hongkong and
Shanghai Banking Corporation Limited, Hong Kong.
As of December 31, 2012, 2011 and 2010, the total restructured unsecured debt were US$ 22,169,338,
US$ 21,945,011 and US$ 21,077,129, respectively which are comprising of principal notes at
US$ 18,670,630 plus unpaid capitalized interest of US$ 3,498,708 in 2012, US$ 3,274,381 in 2011
and US$ 2,406,499 in 2010.
Based on the Minutes of Noteholders Meeting between the Company (Borrower) and The Hongkong
and Shanghai Banking Corporation Limited (Noteholder) dated January 30, 2009, the Noteholder shall
defer the redemption dated of the unsecured debt and notes payable for 3 (three) years by revoking and
replacing the table of redemption dates below :
78

24. UNSECURED DEBTS AND NOTES PAYABLE (Continued)

Years
Rate of return
2012
2013
2014
2015
2016
2017
5.00%
17.50%
17.50%
17.50%
20.00%
22.50%
Further, based on the Minutes of Noteholders Meeting between the Company (Borrower) and The
Hongkong and Shanghai Banking Corporation Limited (Noteholder) dated December 23, 2011, the
Noteholder shall defer the redemption dated of the unsecured debt and notes payable for 3 (three)
years by revoking and replacing the table of redemption dates below :
Years
Rate of return
2015
2016
2017
2018
2019
2020
5.00%
17.50%
17.50%
17.50%
20.00%
22.50%
All unsecured debts and notes payable are denominated in US Dollar.

For the years ended December 31, 2012 and 2011, the interest charges on the unsecured debts were
US$ 885,278 and US$ 861,026, respectively, and are presented as part of finance costs accounts in the
consolidated statements of comprehensive income (Note 43).
The fair value of long-term financial liabilities have been determined by calculating their present value
at the statement of financial position date, using fixed effective market interest rates available to the
Company. No fair value changes have been included in consolidated statements of comprehensive
income for the period as financial liabilities are carried at amortized cost in the consolidated
25. WORKING CAPITAL LOANS
Related Party :
Less : current maturity of long-term liabilities
Long-term liability net of current maturity
2012
US$
2011
US$
2010
US$
17,340,000
(17,340,000)
23,000,000
(8,500,000)
40,610,862
(4,333,000)
14,500,000
36,277,862
79

25. WORKING CAPITAL LOANS (Continued)

According to the Composition Plan approved by the creditors, Damiano Investments BV., Netherland
has provided US$ 15,000,000 working capital loans for the Company. The interest chargeable on this
loan is 9% per annum till the implementation of the Composition Plan. Upon implementation of the
Composition Plan, the rate of interest and repayment of the principal amount are as per the terms of
the New Notes / Loan restructure. The working capital loans have been fully paid by the Company
during 2011.
In addition to the above working capital loan, Damiano Investments BV., Netherland has also
provided US$ 10,687,669.23 as working capital loans to the Company with interest rate of 15% per
annum. The part of these working capital loans with totalling of US$ 6,777,924.23 have been repaid
by the Company in 2011 while the remaining balance of US$ 3,909,745 was repaid by the Company in
2012.
Damiano Investments BV., Netherland has also provided US$ 3,336,000 as advances. Based on the
termination agreement dated January 1, 2008, Damiano Investments BV., Netherland agreed to
reclassify the advances into a working capital loan agreement. It has been repaid by the Company in
2012.
Based on the termination deed dated January 1, 2008, Damiano Investments BV., Netherland also
agreed to reclassify outstanding amounts of principal and its interest from Catoras pre-financing
facility amounting to US$ 4,000,000 and US$ 2,399,255, respectively into a working capital loan
agreement. It has been repaid by the Company in 2012.
Based on the third loan agreement dated August 14, 2008 and September 19, 2008, the Company
obtained additional working capital loan from Damiano Investments BV., Netherland amounting to
US$ 700,000 and US$ 155,000, respectively. It has been repaid by the Company in 2012.
During the year 2009, Damiano Investments BV., Netherland has also provided US$ 1,625,000 as a
part of the Third Loan Agreement. The part of these short-term working capital loans with totaling of
US$ 1,257,839 have been repaid by the Company in the 2009 while the remaining balance of
US$ 367,161 was repaid by the Company in 2010.
During the year 2010, Damiano Investments BV., Netherland has also provided US$ 4,333,000 as part
of the Third Loan Agreement for the Companys capital expenditure. It has been repaid by the
Company during February 2011 until June 2011.
During the year 2011, Damiano Investments BV., Netherland has also provided US$ 8,500,000 as part
of the Third Loan Agreement for the Companys capital expenditure. The part of these short-term
working capital loans of US$ 4,100,000 have been repaid by the Company in 2012 while the
remaining balance of US$ 4,400,000 will be repaid by the Company in December 2013.
80

25. WORKING CAPITAL LOANS (Continued)

During the year 2012, Damiano Investments BV., Netherland has also provided US$ 12,940,000 as
part of the Third Loan Agreement for the Companys capital expenditure. It will be repaid by the
Company in December 2013.
All working capital loans are denominated in US Dollar.
For the years ended December 31, 2012 and 2011, the interest charge on the working capital loans
from Damiano Investments BV., Netherland were US$ 2,936,962 and US$ 4,586,244, respectively,
and are presented as part of finance costs accounts in the consolidated statements of comprehensive
income (Note 43).
The fair value of long-term financial liabilities have been determined by calculating their present value
at the statement of financial position date, using fixed effective market interest rates available to the
income for the period as financial liabilities are carried at amortized cost in the consolidated
In 2012, 2011 and 2010, working capital loans from Damiano Investments BV., Netherland are
collateralized by the Companys trade receivables, inventories and property, plant and equipments as
collateral (Notes 7, 10 and 16).
26. CREDIT FINANCING PAYABLES

2012
US$
Credit financing payable:
PT Andalan Finance Indonesia
PT Astra Sedaya Finance
PT Staco Estetika Sedaya Finance
PT Toyota Astra Financial Service
Total credit financing payables
Less : current maturity of credit financing payable:
PT Andalan Finance Indonesia
PT Astra Sedaya Finance
PT Staco Estetika Sedaya Finance
PT Toyota Astra Financial Service
Total current maturity of
credit financing payables
Credit financing payables net of
current maturity
81
2011
US$
2010
US$
59,272
17,010
6,946
36,958
45,758
31,973
27,828
66,909
8,814
46,194
8,404
120,186
105,559
130,321
(33,586)
(11,043)
(6,946)
(13,076)
(22,780)
(13,834)
(20,421)
(20,758)
(5,567)
(18,155)
(8,404)
(64,651)
(57,035)
(52,884)
55,535
48,524
77,437

26. CREDIT FINANCING PAYABLES (Continued)

Based on agreement dated August 5, 2008, the Company obtained a credit financing from PT Astra
Sedaya Finance for purchasing of a car (Honda All New CRV) amounting to Rp 200,200,000 with
interest rate of 8.25% per annum, repayable in monthly installments from August 30, 2008 up to
July 30, 2012. As of December 31, 2012, 2011 and 2010, the outstanding credit financing payable
balances were Rp Nil, Rp 29,195,845 (equivalent to US$ 3,219) and Rp 79,245,841 (equivalent to
US$ 8,814), respectively.
Based on agreement dated December 28, 2009, the Company obtained a credit financing from
PT Toyota Astra Financial Services for purchasing of a car (Toyota Innova) amounting to
Rp 164,850,000 with interest rate of 6.00% per annum, repayable in monthly installments from
December 30, 2009 up to November 30, 2011. As of December 31, 2012, 2011 and 2010, the
outstanding credit financing payable balances were Rp Nil, Rp Nil and Rp 75,556,250 (equivalent to
US$ 8,404), respectively.
Based on agreement dated May 24, 2010, the Company obtained a credit financing from PT Staco
Estetika Sedaya Finance for purchasing of a car (Toyota Fortuner) amounting to Rp 513,000,000 with
effective interest rate of 12.83% per annum, repayable in monthly installments from May 28, 2010 up
to April 28, 2013. As of December 31, 2012, 2011 and 2010, the outstanding credit financing payable
balances were Rp 67,160,963 (equivalent to US$ 6,946), Rp 252,341,940 (equivalent to 27,828) and
Rp 415,331,575 (equivalent to US$ 46,194), respectively.
PT Andalan Finance Indonesia for purchasing of a car (Toyota Innova) amounting to Rp 137,547,400
with effective interest rate of 10.04% per annum, repayable in monthly installments from
outstanding credit financing payable balances were Rp 46,118,818 (equivalent to US$ 4,769),
Rp 91,836,615 (equivalent to US$ 10,127) and Rp 133,141,400 (equivalent to US$ 14,808),
respectively.
respectively
PT Andalan Finance Indonesia for purchasing of a car (Toyota Fortuner) amounting to Rp 346,385,800
respectively.
82


Based on agreement dated June 16, 2011, the Company obtained a credit financing from PT Astra
Sedaya Finance for purchasing of a car (Isuzu Elf) amounting to Rp 185,598,390 with effective interest
rate of 10.24% per annum, repayable in monthly installments from July 19, 2011 up to June 19, 2014.
As of December 31, 2012 and 2011, the outstanding credit financing payable balances were
respectively.
Based on agreement dated June 20, 2011, the Company obtained a credit financing from PT Astra
Sedaya Finance for purchasing of a car (Toyota Avanza) amounting to Rp 119,640,000 with effective
interest rate of 10.74% per annum, repayable in monthly installments from July 22, 2011 up to
June 22, 2014. As of December 31, 2012 and 2011, the outstanding credit financing payable balances
were Rp 64,605,671 (equivalent to US$ 6,681) and Rp 102,266,933 (equivalent to US$ 11,278),
respectively.
Based on agreement dated July 30, 2012, the Company obtained a credit financing from PT Toyota
Astra Finance Services for purchasing of a car (Toyota Innova) amounting to Rp 232,700,000 with
effective interest rate of 10.24% per annum, repayable in monthly installments from July 24, 2012 up
to June 24, 2015. As of December 31, 2012, the outstanding credit financing payable balance was
Rp 160,872,118 (equivalent to US$ 16,637).
Based on agreement dated July 30, 2012, the Company obtained a credit financing from PT Toyota
Astra Finance Services for purchasing of a car (Toyota Innova) amounting to Rp 284,250,000 with
effective interest rate of 10.24% per annum, repayable in monthly installments from July 24, 2012 up
to June 24, 2015. As of December 31, 2012, the outstanding credit financing payable balance was
Rp 196,507,062 (equivalent to US$ 20,321).
Based on agreement dated November 12, 2012, the Company obtained a credit financing from
November 19, 2012 up to October 19, 2015. As of December 31, 2012, the outstanding credit financing
payable balance was Rp 208,935,649 (equivalent to US$ 21,607).
Based on agreement dated November 12, 2012, the Company obtained a credit financing from
December 3, 2012 up to December 3, 2015. As of December 31, 2012, the outstanding credit financing
payable balance was Rp 155,855,000 (equivalent to US$ 16,117).
The interest expenses incurred on this credit financing for the years ended December 31, 2012 and
2011 were Rp 118,812,998 (equivalent to US$ 12,287) and Rp 136,723,195 (equivalent to
US$ 15,140), respectively, and is shown as part of the finance costs accounts in the consolidated
statements of comprehensive income (Note 43).
83


The fair value of the long-term financial liabilities credit financing payables as of December 31,
2012, 2011 and 2010 have been determined by calculating their present value at the consolidated
statement of financial position date, using fixed effective market interest rates available to the
income for the period as financial liabilities are carried at amortized cost in the consolidated statements
of financial position.
27. FINANCE LEASE LIABILITIES

Lessors
Type of asset
2012
US$
2011
US$
Machinery
Machinery
Machinery
Machinery
Machinery
1,233,718
1,165,187
970,270
602,339
329,467
Total
4,300,981
Less : Current maturity of long-term liabilities
(4,300,981)
PT Perjahl Leasing Indonesia

PT Piranti Mulia Bisnisindo
PT Hanil Bakrie Finance Corporation
PT Koexim Mandiri Finance
PT GE Astra Finance
2010
US$
As of December 31, 2010, the interest rate and lease period are as follows :
Interest rate
Lessor
PT Hanil Bakrie Finance Corporation
PT Koexim Mandiri Finance
PT Perjahl Leasing Indonesia
PT Piranti Mulia Binisindo
PT GE Astra Finance
SIBOR + 2 %
SIBOR + 2.55%
SIBOR + 2.8125%
SIBOR + 2%
SIBOR + 4.75% for 1999
SIBOR + 2.75% from
2000 until 2002
Period ended
2007
2004
2003
2005
2002
The future minimum lease payments under finance lease as of December 31, 2012, 2011 and 2010 are
as follows :
84

27. FINANCE LEASE LIABILITIES (Continued)

2012
US$
2011
US$
2010
US$
Total minimum lease payments

Less : amount representing interest
4,891,397
(590,416)

Less : Current maturity of long-term liabilities
4,300,981
(4,300,981)
In 2007, PT Koexim BDN Finance (formerly PT Koexim Mandiri Finance) had filed a petition to the
Hight Jakarta Court for recovery of leased equipment.
In 2010, PT Hanil Bakrie Finance Corporation with PT Koexim BDN Financing (Formerly
PT Koexim Mandiri Finance) had filed a petition to the District Jakarta Court. And on
August 19, 2011, the Commercial Court of Central Jakarta declared that the Subsidiary (PT Texmaco
Jaya Tbk) is in state of bankruptcy and insolvency.
Deduction in 2011 represents the deduction of obligation under finance lease which financial
statements were no longer consolidated in 2011 due to the Subsidiary (PT Texmaco Jaya Tbk) is
stated at bankruptcy and insolvency so it caused that the Company have lost of control (Note 45).
The fair value of these obligation under finance lease is not individually determined as the the carrying
The details of obligation under capital lease based on currencies are as follows :
2012
US$
2011
US$
2010
US$
4,300,981
28. LONG-TERM EMPLOYEE BENEFITS LIABILITIES

On June 20, 2000, the Ministry of Manpower issued Decree No. KEP-150/Men/2000 regarding the
settlement of work dismissal and determination of separation, appreciation and compensation payment
to employees, which requires companies to pay their employees gratuity and compensation benefits in
case of employees resignation based on the employees number of years of service and salaries
provided the conditions set forth in the decree are met.
85

28. LONG-TERM EMPLOYEE BENEFITS LIABILITIES (Continued)

In April 2003, the Government of the Republic Indonesia issued Labour Law No. 13/2003 replacing
the Decree No. KEP-150/Men/2000.
The Company has defined benefit pension plans covering substantially all of their eligible permanent
employees. The balances of long-term employee benefit liabilities as of December 31, 2012, 2011 and
2010 of US$ 10,274,737, US$ 8,561,749, and US$ 8,189,736, respectively are calculated by
independent actuary on a yearly basis, as set out in their reports dated March 8, 2013.
The amounts recognized in the consolidated statements of financial position are determined as
follows:
2012
US$
2011
US$
2010
US$
Present value of obligations

Unrecognized past service cost
Unrecognized actuarial losses
18,296,212
(1,616,334)
(6,405,141)
15,100,623
(1,955,813)
(4,583,061)
12,809,715
(2,206,725)
(2,413,254)
Net liability
10,274,737
8,561,749
8,189,736
The movements in the present value of unfunded obligation over the year are as follows:
2012
US$
2011
US$
Beginning of the year

Balance of unconsolidated Subsidiary
Foreign exchange translation
Current service cost
Interest costs
Actuarial loss recognized during the year
Benefit paid
15,100,623
(940,080)
1,387,440
960,116
2,279,745
(491,632)
12,809,715
(1,652,239)
(127,873)
1,273,683
962,304
2,269,428
(434,395)
End of the year
18,296,212
15,100,623
2010
US$
8,143,997
370,470
1,179,859
722,058
2,998,329
(604,998)
12,809,715
As of December 31, 2012, 2011 and 2010, all of defined benefit obligation is unfunded obligation so
there is no fair value of plan assets.
The amounts recognized in the consolidated statements of comprehensive income are as follows:
2012
US$
Interest costs
Past service cost
Losses on curtailments and settlements
Total (Note 42)
86
2011
US$
2010
US$
1,387,440
960,116
217,721
172,350
1,273,683
962,304
232,174
79,129
1,179,859
722,058
185,221
48,942
2,737,627
2,547,290
2,136,080


The movements in the net liability recognized in the consolidated statements of financial position are
as follows :
2012
US$
Beginning of the year
Foreign exchange translation
Benefits payment
Amount charged to income
8,561,749
(533,007)
(491,632)
2,737,627
Ending of the year
10,274,737
2011
US$
2010
US$
8,189,736
(1,652,239)
(88,643)
(434,395)
2,547,290
6,368,931
289,723
(604,998)
2,136,080
8,561,749
8,189,736
The cost of providing post-employment benefits is calculated by independent actuary, PT Sienco

Aktuarindo Utama as of December 31, 2012, 2011 dan 2010 using the following key assumptions :
Discount rate
Salary growth rate
Mortality rate
Normal retirement age
Probability of resigned
Fund method
:
:
:
:
:
:
6.10% p.a. in 2012, 6.90% p.a. in 2011, and 8.90% p.a. in 2010
8.00% p.a. in 2012, 2011 and 2010
The 1980 Commissioners Standard Ordinary Mortality Table.
10% in 20 years old and decline until 54 years old
1% of mortality rate
Projected Unit Credit Method
Assumptions regarding future mortality experience are set based on actuarial advice in accordance
with published statistics and experience in each territory. In Indonesia, the mortality assumptions used
are based on Commissioner Standard Ordinary Tables 1980 (CSO 1980).
Management reviewed the assumptions used and is of the opinion that the assumptions are reasonable.
Management believes that the provision for severance provided is adequate to cover the potential
liability required by Labour Law No. 13/2003.
The sensitivity of the present value of defined benefit obligation and current service cost to changes in
the weighted principal assumptions of 1% is as follows :
Descriptions
Present value of defined obligation

Discount Rate
5.10%
In US$
In %
20,202,437
1,562,980
87
10.42%
12.65%
Discount Rate
7.10%
In US$
In %
16,651,745
1,241,350
(8.99%)
(10.53%)


2012
US$
Present value of defined benefit obligation 18,296,212
Fair value of plan assets

Deficit in the plan
Experience adjustments on plan liabilities
18,296,212
1,158,683
Experience adjustments on plan assets
2011
US$
2010
US$
2009
US$
2008
US$
15,100,623
12,809,715
8,143,997
7,347,382
15,100,623
12,809,715
8,143,997
7,347,382
1,649,536
681,563
(65,731)
(65,020)
29. TAXATION
a. Prepaid Taxes
2012
US$
Overpayment of corporate income tax
2008
2009
2010
2011
2012
Value added Tax
Total prepaid taxes
2011
US$
2010
US$
3,988,440
4,911,387
5,886,221
3,997,374
3,988,440
5,216,579
104,455
2,122,264
4,018,172
7,825,871
14,786,048
13,202,393
14,070,762
2012
US$
2011
US$
2010
US$
b. Taxes Payable
Income tax article 21

Income tax article 4(2)
Value added tax
Tax penalty
127,291
61,260
143,125
1,419,419
104,109
64,596
254,953
1,513,650
243,011
121,927
259,272
1,565
1,680,596
216,688
Total taxes payable
1,751,095
1,937,308
2,523,059
88

29. TAXATION (Continued)

c. Corporate Income Tax
A reconciliation between loss before income tax as shown in the statements of comprehensive
income and estimated taxable loss which was calculated by the Company for the years ended
December 31, 2012 and 2011 are as follows :
2012
US$
2011
US$
Loss before income tax as per consolidated

statements of comprehensive income
Profit before income tax of the Subsidiaries
Elimination with discountinued operations
(41,759,997 )
(36,178,327 )
(122,068,657 )
Loss before income tax as per statement of

comprehensive income of the Company
(41,759,997 )
(158,246,984)
Fiscal adjustments consisted of :

Permanent difference :
Non deductible expenses (non taxable income) :
Loss (gain) on foreign exchange rate
Entertainment and representation
Donation
Allowance for impairment
Tax expense
Payables written-off
Interest income
(50,856,056 )
107,849
12,719
920,620
(383,000 )
(31,754 )
5,722,906
106,338
19,725
(30,499)
2,493,421
(349,556)
(21,064)
(50,229,622 )
7,941,271
36,996,057
(131,555 )
(12,750 )
1,712,988
41,983,699
(138,478)
2,057,666
38,564,740
43,902,887
(53,424,879 )
(146,189,664 )
(106,402,826)
(39,786,838)
(199,614,543)
(146,189,664)
Timing differences :
Depreciation expense of property, plant and
Equipment
Amortization of deferred charges
Intangible assets
Long-term employee benefits liabilities
Estimated taxable loss for the year before

fiscal loss carry forward
Fiscal loss carry forward
Total estimated accumulated taxable loss
89


c. Corporate Income Tax (Continued)
2012
US$
2011
US$
Estimated corporate income tax
Prepaid taxes :
(4,903,200)
(8,187)
(3,988,440)
Total prepaid taxes
(4,911,387)
(3,988,440)
(4,911,387)
(3,988,440)
Estimated overpayment of corporate income tax
The estimated taxable loss for the year ended December 31, 2011 as reported in the 2011
corporate income tax return amounted to Rp 981,369,261,111 (equivalent to US$ 107,902,063),
and the tax return was submitted to the tax office in April 2012. For this discrepancy, the
Company did not make any correction to the corporate income tax return.
A reconciliation the estimated taxable loss between the amounts computed by

functional/presentation currency and taxation purpose for the years ended December 31, 2012
and 2011 are as follows:
Tax Reporting
Currency
Rp
Loss before income tax as per
consolidated statements of
comprehensive income
Profit before income tax of
the Subsidiaries
Elimination with discountinued
operations
statements of comprehensive
Income of the Company
(800,263,385,084 )
December 31, 2012

Exchange
Tax Reporting
Currency
Rate
Rp
US$
(41,759,997 )
Functional
Currency
US$
(41,759,997 )
(800,263,385,084 )
90
(41,759,997 )
(41,759,997 )


Tax Reporting
Currency
Rp
Non deductible expenses
(non taxable income) :
Gain on foreign exchange rate
Entertainment and
representation
Donation
Tax expenses
Interest income
1,010,866,399
120,247,500
8,331,874,273
(3,483,385,000 )
(299,613,563 )
December 31, 2012

Exchange
Tax Reporting
Currency
Rate
Rp
US$
9,373
9,454
9,050
9,095
9,435
5,679,989,609
Depreciation expense of
property, plant and
equipment
Amortization of deferred
charges
Intangible assets
Long-term employee benefits
liabilities
254,626,452,689
(295,053,242 )
(115,500,000 )
21,718,769,343
6,883
2,243
9,059
12,679
275,934,668,790
Estimated taxable loss for the year
before fiscal loss carry forward
(518,648,726,685 )
(1,407,879,574,216 )
Total estimated accumulated
taxable loss
(1,926,528,300,901)
(44,580,486,515)
(78,750,000)
Total prepaid taxes
(50,856,056 )
(50,856,056 )
107,849
12,719
920,620
(383,000 )
(31,754 )
107,849
12,719
920,620
(383,000 )
(31,754 )
(50,229,622 )
(50,229,622 )
36,996,057
36,996,057
(131,555 )
(12,750 )
(131,555 )
(12,750 )
1,712,988
1,712,988
38,564,740
38,564,740
(53,424,879 ) (53,424,879 )
(146,189,664 ) (146,189,664 )
(199,614,543)
Prepaid taxes :
Estimated overpayment of
corporate income tax
9,708
9,631
Functional
Currency
US$
(199,614,543)
(4,903,200)
(8,187)
(4,903,200)
(8,187)
(44,659,236,515)
(4,911,387)
(4,911,387)
(44,659,236,515)
(4,911,387)
(4,911,387)
91
9,092
9,618


Tax Reporting
Currency
Rp
December 31, 2011

Exchange
Tax Reporting
Currency
Rate
Rp
US$
Functional
Currency
US$

consolidated statements of
comprehensive income
Profit before income tax of
the Subsidiaries
Elimination with discountinued
operations
(1,110,367,644,627 )
(122,068,657 ) (122,068,657 )

statements of comprehensive
Income of the Company
(1,224,235,656,701 )
(158,246,984)

Non deductible expenses
(non taxable income) :
Loss on foreign
exchange rate
Entertainment and
representation
Donation
Allowance for impairment
Tax expense
Interest income
(113,868,012,074 )
(36,178,327 )
933,029,594
173,275,000
(274,213,845 )
21,806,504,613
(3,095,834,930 )
(185,188,989 )
8,774
8,785
8,991
8,746
8,857
8,792
19,357,571,443
property, plant and
equipment
Amortization of deferred
charges
Long-term employee benefits
liabilities
218,295,231,725
(310,582,360 )
19,159,732,318
237,144,381,683
92
5,200
2,243
9,311
(36,178,327 )
(158,246,984)
5,722,906
5,722,906
106,338
19,725
(30,499)
2,493,421
(349,556)
(21,064)
106,338
19,725
(30,499)
2,493,421
(349,556)
(21,064)
7,941,271
7,941,271
41,983,699
41,983,699
(138,478)
(138,478)
2,057,666
2,057,666
43,902,887
43,902,887


Tax Reporting
Currency
Rp
Estimated taxable loss for the year
before fiscal loss carry forward
(967,733,703,575 )
(440,145,870,641 )
Total estimated accumulated

taxable loss
(1,407,879,574,216)
9,095
11,063
(36,167,173,650)
Total prepaid taxes
Functional
Currency
US$
(106,402,826)
(39,786,838)
(106,402,826)
(39,786,838)
(146,189,664)
(146,189,664)
Prepaid taxes :
Estimated overpayment of
corporate income tax
December 31, 2011

Exchange
Tax Reporting
Currency
Rate
Rp
US$
(3,988,440)
(3,988,440)
(36,167,173,650)
(3,988,440)
(3,988,440)
(36,167,173,650)
(3,988,440)
(3,988,440)
9,068
d. Deferred Tax Assets (Liabilities)

The calculation of deferred tax assets and deferred tax liabilities with the maximum tax tariff of
25% in 2012, 2011 and 2010 are as follows :
As of
December 31, 2011
US$
Deferred tax assets (liabilities) :
Accumulated taxable loss
Valuation allowance
property, plant and equipment
Intangible assets
Long-term employee benefit liabilities
2 0 1 2
Credited (charged)
to the conosolidated
statements of
comprehensive
income for the year
US$
As of
December 31, 2012
US$
36,547,416
(36,547,416)
13,356,220
(13,356,220)
49,903,636
(49,903,636)
(9,402,121)
837,119
2,140,437
9,249,015
(32,889)
(3,187)
428,247
(153,106)
804,230
(3,187)
2,568,684
(6,424,565)
9,641,186
3,216,621
Total deferred tax assets (liabilities)
93


d. Deferred Tax Assets (Liabilities) (Continued)
2 0 1 1
Credited (charged)
to the consolidated
statements of
comprehensive
income
for the year
Deconsolidation
US$
US$
As of
December 31,
2010
US$
Valuation allowance
The Subsidiaries :
TJ
TGB
9,946,710
(9,946,710)
26,600,706
(26,600,706)
36,547,416
(36,547,416)
(19,898,045)
871,739
1,626,021
10,495,924
(34,620)
514,416
(9,402,121)
837,119
2,140,437
(17,400,285)
10,975,720
(6,424,565)
14,552,116
18,215
(1,084,290)
922
(13,467,826)
(19,137)
14,570,331
(1,083,368)
(13,486,963)
(2,829,954)
9,892,352
(13,486,963)
As of
December 31, 2009
US$
Valuation allowance
2 0 1 0
Credited (charged)
to the statements
comprehensive
of income for
the year
US$
(6,424,565)
As of
December 31, 2010
US$
22,669,329
(22,669,329)
(18,939,421)
18,939,421
3,729,908
(3,729,908)
(30,759,842)
908,180
1,216,623
10,861,797
(36,441)
409,398
(19,898,045)
871,739
1,626,021
(28,635,039)
11,234,754
(17,400,285)
16,323,874
17,422
(1,771,758)
793
14,552,116
18,215
16,341,296
(1,770,965)
14,570,331
(12,293,743)
9,463,789
(2,829,954)
The Subsidiaries :
TJ
TGB
As of
December 31,
2010
US$
94


d. Deferred Tax Assets (Liabilities) (Continued)
There are no income tax charged/(credited) relating to other comprehensive income during the
year.
Deduction in 2011 represents deduction of deferred tax assets which financial statements were no
longer consolidated in 2011 due to the Subsidiary (PT Texmaco Jaya Tbk) is stated at bankruptcy
and insolvency so it caused that the Company have lost of control (Note 45).
The recognition of the Company and its Subsidiaries deferred tax assets is based on
managements estimates of the results of future operations including an estimate of output levels
and commodity prices for the Company and its Subsidiaries products, the timing and extent of the
reversal certain of the Company and its Subsidiaries deferred tax liabilities, and certain tax
planning strategies. Based on these estimates, management believes that the Company will not
realize its deferred tax asset arising from accumulated taxable loss. Accordingly, the management
had made a valuation allowance of US$ 49,903,636, US$ 36,547,416, and US$ 9,946,710 as at
December 31, 2012, 2011 and 2010, respectively.
The basis supporting recognition of the deferred tax assets is reviewed regularly by management.
A reconciliation between the total tax expense (income) and the amounts computed by
applying the effective tax rate to profit (loss) before income tax is as follows :
2012
US$
2011
US$
Loss before income tax as per consolidated

statements of comprehensive income
Profit before income tax of the Subsidiaries
Elimination with discountinued operations
(41,759,997 )
(36,178,327 )
(122,068,657 )
Loss before income tax as per statement of

comprehensive income of the Company
(41,759,997 )
(158,246,984)
Tax benefit at tax rate 25%
(10,439,999 )
(39,561,746)
Taxable loss at tax rate 25%
13,356,219
26,600,706
(12,557,406)
1,985,320
(9,641,186)
(10,975,720)
Tax effect of non-deductible expense

(non-taxable income)
Total tax income from continuing operation
Total tax expense from discountinued
operation (Note 45)
Total tax income
(9,641,186)
95
1,083,368
(9,892,352)


e. Tax Income (Expense)
Continuing operations :
Current income tax :
The Company
Subsidiaries
Deferred tax income (expense) :

The Company
Subsidiaries
2011
US$
9,641,186
10,975,720
9,641,186
10,975,720
9,641,186
10,975,720
Total tax income from continuing operations

Total tax expense from discountinued operations
(Note 45)
Total tax income
f.
2012
US$
(1,083,368)
9,641,186
9,892,352
Tax Assessment Letter

a. Company
On November 7, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 26 assessment
letter for fiscal period March 2012. Based on the Indonesian Tax Authorities letter
No. 00004/104/12/092/12, the Company had additional tax liability of Rp 20,905,432. The
tax liability was paid on November 28, 2012.
On September 5, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period August 2011. Based on the Indonesian Tax Authorities letter
No. 00028/407/11/092/12, the Company had an overpayment of Rp 17,500,076,809. The
overpayment of Value Added Tax was received on September 27, 2012.
On May 30, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
letter for fiscal year 2010. Based on the Indonesian Tax Authorities letter
No. 000108/503/10/511/12, the Company had no additional tax liability.
96


f.
Tax Assessment Letter (Continued)

a. Company (Continued)
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 4(2) assessment
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Corporate Income Tax assessment letter
for fiscal year 2010. Based on the Indonesian Tax Authorities letter
overpayment of Corporate Income Tax has been compensated in June 2012 with the other
tax liabilities for fiscal year 2010 with totalling amount of Rp 2,740,502,844. And the
remaining of its overpayment amounted to Rp 33,174,268,070 were received on
June 27, 2012.
No. 00032/203/10/092/12, the Company had additional tax liability of Rp 2,340,007,727.
The tax liability had been compensated in June 2012 with the overpayment of 2010
corporate income tax.
tax liability had been compensated in June 2012 with the overpayment of 2010 corporate
income tax.
97


f.

Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 4(2) assessment
No. 00016/240/10/092/12, the Company had additional tax liability of Rp 236,944,163.
The tax liability had been compensated in June 2012 with the overpayment of 2010
fiscal period December 2010. Based on the Indonesian Tax Authorities letter
income tax.
income tax.
fiscal period November 2010. Based on the Indonesian Tax Authorities letter
overpayment of Value Added Tax has been compensated in December 2011 with the
November 2010 Value Added Tax liability amounted to Rp 48,621,160. And the
remaining of its overpayment amounted to Rp 10,310,802,254 were received on December
19, 2011.
fiscal period October 2010. Based on the Indonesian Tax Authorities letter
tax liability had been compensated in December 2011 with the overpayment of November
2010 value added tax.
98


f.

On August 24, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
fiscal period September 2010. Based on the Indonesian Tax Authorities letter
overpayment of Value Added Tax has been compensated in September 2011 with the
other tax liabilities for fiscal year 2009 with totalling amount of Rp 8,712,581. And the
remaining of its overpayment amounted to Rp 8,759,215,905 were received on September
20, 2011.
fiscal period August 2010. Based on the Indonesian Tax Authorities letter
tax liability was paid on September 9, 2011.
fiscal period July 2010. Based on the Indonesian Tax Authorities letter
fiscal period June 2010. Based on the Indonesian Tax Authorities letter
fiscal period May 2010. Based on the Indonesian Tax Authorities letter
fiscal period April 2010. Based on the Indonesian Tax Authorities letter
overpayment of Value Added Tax has been compensated in May 2011 with the other tax
liabilities for fiscal year 2010 with totalling amount of Rp 99,079,275. And the remaining
of its overpayment amounted to Rp 13,453,051,551 were received on June 9, 2011.
99


f.

fiscal period March 2010. Based on the Indonesian Tax Authorities letter
No. 00010/207/10/092/11, the Company had an additional tax liability of Rp 1,621,560.
The tax liabilities were paid on December 9, 2011.
On April 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 4 (2) assessment
On March 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Corporate Income Tax assessment letter
for fiscal year 2009. Based on the Indonesian Tax Authorities letter
overpayment of Corporate Income Tax has been compensated in May 2011 with the other
tax liabilities for fiscal year 2009 with totalling amount of Rp 4,445,402,669. And the
remaining of its overpayment amounted to Rp 14,286,811,350 were received on
May 31, 2011.
The tax liability had been compensated in May 2011 with the overpayment of 2009
100


f.

Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 4 (2) assessment
fiscal year 2009. Based on the Indonesian Tax Authorities letter
tax liability had been compensated in May 2011 with the overpayment of 2009 corporate
income tax.
income tax.
fiscal period February 2009. Based on the Indonesian Tax Authorities letter
income tax.
101


f.

fiscal period January 2009. Based on the Indonesian Tax Authorities letter
income tax.
On February 16, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
fiscal period February 2010. Based on the Indonesian Tax Authorities letter
overpayment of Value Added Tax has been compensated in February 2011 with the other
tax liabilities for fiscal year 2010 with totalling amount of Rp 291,202,973. And the
remaining of its overpayment amounted to Rp 13,125,570,927 were received on February
25, 2011.
On February 16, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
fiscal period January 2010. Based on the Indonesian Tax Authorities letter
tax liability had been compensated in February 2011 with the overpayment of February
2010 Value Added Tax.
On September 30, 2010, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
No. 00015/204/06/092/10, the Company had an overpayment of Income Tax Article 26 of
Rp 8,844,864,229. In the other that, the Company also received the interest of
Rp 4,245,534,829, the totaling of Rp 13,090,399,058 had been received on
November 24, 2010. Direktorat Jenderal Pajak has filed a Review Petition (PK) against
the verdict of refund. If Review Petition is accepted and approved, the Company has to
refund the above amount along with accrued interest. But until the date of report finished,
the result has not been determined yet.
102


f.

corporate income tax. And based on the decision from Indonesian Tax Court No.
KEP-00127/WPJ.19/KP.0203/2012, the Company had an overpayment of Income Tax
Article 26 of Rp 20,544,225,183. The overpayment of Income Tax Article 26 had been
received on August 31, 2012.
corporate income tax. Further on July 7, 2010, the Company submits the objection letter to
the Indonesian Tax Authorities.Until the date of report finished, the result has not
determined yet.
corporate income tax. Further on July 7, 2010, the Company submits the objection letter to
the Indonesian Tax Authorities.Until the date of report finished, the result has not
determined yet.
g. Administration
It is noted that value added taxes for the fiscal period September 2011 up to September 2012
is under examined by the Tax Authorities, and until the date of report finished, the result has
not yet been determined.
103


g. Administration (Continued)
Under the taxation laws of Indonesia, the Company submits tax returns on the basis of self
assessment. Under prevailing regulations the Director General of Tax (DGT) may assess or
amend taxes within a certain period. For the fiscal years of 2007 and before, this period is
within 10 (ten) years of the time the tax become due, but not later than 2013, while for the
fiscal years of 2008 and onwards, the period is within 5 (five) years of the time the tax
becomes due.
On September 23, 2008, the Government of Republic of Indonesia approved the new revised
Income Tax law effective January 1, 2009. The revision includes, among others, the changes
in the effective tax rate from 30% in 2008 to 28% in 2009, and to 25% in 2010. In addition to
the impact on the current income tax for 2009, the revision will also impact the deferred
income tax previously set up to reflect the reduction in effective tax rate.
The Companys management believes that the Company has complied with the prevailing tax
regulations.
30. SHARE CAPITAL

Pursuant to the notarial deed of Januar Tirtaamidjaja, S.H., No. 22 dated February 15, 1984, the
authorized capital amounts to Rp 15,000,000,000 consisting of 600 shares with a par value of
Rp 25,000,000 each. Issued and fully paid-up capital amounts to Rp 7,500,000,000 (equivalent to
US$ 6,710,179) or consist of 300 shares.
Pursuant to the General Shareholders Meeting with notarial deed of Aulia Taufani, S.H., No. 100
dated December 27, 2002, the shareholders agreed to approve the changes in the Companys Articles
of Association to increase the authorized capital from Rp 8,500,000,000,000 to become
Rp 16,000,000,000,000 and issued and paid-in capital from Rp 2,196,960,000,000 to become
Rp 4,174,224,000,000.
Pursuant to the notarial deed of Aulia Taufan, S.H., No. 12 dated July 4, 2006 regarding the
amendment of the Companys Article of Association and the Extraordinary Shareholders Meeting
with notarial deed of the same notary No. 111 dated June 21, 2006, the shareholders approved the
following :
The authorized capital of the Company amounts to Rp 16,000,000,000,000 and issued and fully
paid up capital amounts to Rp 4,174,224,000,000.
The allocation of 83,484,480,000 new shares (series C) par value Rp 2 each with to regard to the
debt to equity conversion. The new shares of 43,144,238,750 shares for the unsecured creditors
and new working capital lender and 40,340,241,250 shares for secured creditors.
104

30. SHARE CAPITAL (Continued)
To record the paid in capital in excess of par value from debt to equity conversion of
Rp 5,574,513,535,500 (equivalent to US$ 618,017,022).
The deed was approved by the Minister of Justice and Human Right in his decision letter
No. C-25038 HT.01.04.TH.2006 dated August 28, 2006 and registered in the Department of Industry
and Trade under No. 233/BH-1/IX/2006 dated September 1, 2006.
As of December 31, 2006, the authorized capital of the Company amounted to Rp 16,000,000,000,000
consisting of 247,145,100,800 shares with the following classifications.
Series A of 17,000,000,000 shares with par value of Rp 500 each.

Series B of 146,660,620,800 shares with par value of Rp 50 each.
Series C of 83,484,480,000 shares with par value of Rp 2 each.
Issued and fully paid up capital was Rp 2,283,248,477,500 consisting of Series A of 4,393,920,000
shares, and Series C of 43,144,238,750 shares.
In February 2008, the Company amended its Articles of Association in connection with the reverse
stock split with ratio 20 : 1. Based on the notarial deed of Sutjipto S.H., No. 91 dated
February 21, 2008 regarding the changes of the Articles of Association, the authorized capital of the
Company amounts to Rp 16,000,000,000,000 consisting of 12,357,255,040 shares with following
classifications:
Series A of 850,000,000 shares with par value of Rp 10,000 each.

Series B of 7,333,031,040 shares with par value of Rp 1,000 each.
Series C of 4,174,224,000 shares with par value of Rp 40 each.
The deed was approved by the Minister of Justice and Human Rights in his decision letter
No. AHU-10588.AH.01.02 Tahun 2008 dated March 3, 2008.
Issued and fully paid in capital amounted to Rp 4,174,224,000,000 (26%) consist of :
219,696,000 shares with par value of Rp 10,000 each or totaling Rp 2,196,960,000,000.

1,890,975,522 shares with par value of Rp 1,000 each or totaling Rp 1,890,975,522,000.
2,157,211,950 shares with par value of Rp 40 each or totaling Rp 86,288,478,000.
105


The composition of stockholders as of February 21, 2008 based on notarial deed is as follows :
Stockholders
Numbers of
Shares
Shares Series A
Shares Series B
Shares Series C
219,696,000
1,890,975,522
2,157,211,950
Total
4,267,883,472
Percentage of
ownership
%
5.15
44.30
50.55
100.00
Total
Rp
US$
2,196,960,000,000
1,890,975,522,000
86,288,478,000
625,598,841
209,642,519
9,566,350
4,174,224,000,000
844,807,710
Based on the Extraordinary General Stockholders Meeting (RUPSLB) held on March 24, 2009 and
based on notarial deed No. 91 dated March 24, 2009 of Sutjipto, S.H., notary in Jakarta, the
stockholders approved the issuance of 118,845,397 new authorized shares series C (5% of issued and
paid-up capital) without preemptive rights in the framework of Grant Date I of stock options
programme to the Companys management and employees (Management Employee Stock Option
Programme / MESOP). The notarial deed was approved by the Minister of Law of the Republic of
Indonesia based on his decision letter No. AHU-0052619.AH.01.09.Tahun 2009 dated
August 14, 2009. Based on the Companys schedule that was reported to PT Bursa Efek Indonesia
dated March 17, 2009, this program will be implemented on the period below :
Period
I
II
III
IV
V
VI
VII
Implementation Period
5 (five) trading days starting from April 1, 2009
5 (five) trading days starting from October 1, 2009
5 (five) trading days starting from February 1, 2012
Based on the notarial deed of Aryanti Artisari, S.H., M.Kn. No. 107 dated February 23, 2012, the
stockholders approved the exercise proce for the first stock option programme of Rp 45 per share. On
March 5, 2012, the Company issued 118,845,397 new authorized shares series C with par value of
Rp 40 each or totaling Rp 4,753,815,880 (equivalent to US$ 524,125). The deed was approved by the
Minister of Law and Human Rights in his decision letter No. AHU-0018443.AH.01.09.Tahun 2012
dated February 29, 2012.
106


The composition of stockholders as of December 31, 2012, 2011 and 2010 based on the stockholders
list issued by the Stock Administrative Office, PT Datindo Entrycom, of listed shares of the Company
is as follows :
2012
Stockholders
Numbers of
Shares
Total
Percentage of
Ownership
%
Rp
US$
Shares Series A:
Public (below 5% each)
Shares Series B:
131,394,719
88,301,281
219,696,000
5.26
3.54
8.80
1,313,947,195,000
883,012,805,000
2,196,960,000,000
374,155,125
251,443,716
625,598,841
Shares Series C:
Damiano Investments BV.,
Netherland
Kyoa Investment Limited
Others
Unsettled
Total
1,289,079,472
150,837,200
653,500,693
182,639,982
51.65
6.04
26.19
7.32
51,563,178,880
6,033,488,000
26,140,027,720
7,305,599,320
5,716,539
668,901
2,895,102
809,933
2,276,057,347
91.20
91,042,293,920
10,090,475
2,495,753,347
100.00
2,288,002,293,920
635,689,316
2011
Stockholders
Numbers of
Shares
Percentage of
ownership
%
Total
Rp
US$
Shares Series A:
Shares Series B:
131,394,719
88,301,281
219,696,000
5.53
3.71
9.24
107
1,313,947,195,000
883,012,805,000
2,196,960,000,000
374,155,125
251,443,716
625,598,841


2011
Stockholders
Numbers of
Shares
Percentage of
ownership
%
Total
Rp
US$
Shares Series C:
Netherland
Others
Unsettled
Total
1,282,035,520
145,175,700
526,952,223
203,048,507
2,157,211,950
53.94
6.11
22.17
8.54
90.76
51,281,420,800
5,807,028,000
21,078,088,900
8,121,939,800
86,288,477,500
5,685,301
643,795
2,336,817
900,437
9,566,350
2,376,907,950
100.00
2,283,248,477,500
635,165,191
2010
Stockholders
Numbers of
Shares
Percentage of
ownership
%
Total
Rp
US$
Shares Series A:
Shares Series B:
131,394,719
88,301,281
219,696,000
5.53
3.71
9.24
1,313,947,195,000
883,012,805,000
2,196,960,000,000
374,155,125
251,443,716
625,598,841
Shares Series C:
Netherland
Others
Unsettled
Total
1,282,035,720
154,175,500
517,952,223
203,048,507
2,157,211,950
53.94
6.49
21.79
8.54
90.76
51,281,428,800
6,167,020,000
20,718,088,900
8,121,939,800
86,288,477,500
5,685,303
683,705
2,296,905
900,437
9,566,350
2,376,907,950
100.00
2,283,248,477,500
635,165,191
Unsettled shares series C represent the creditors that have not exchanged with the new shares (through
The Hongkong and Shanghai Banking Corporation Limited, Hong Kong the custodian). These
shareholders name is not yet registered in PT Datindo Entrycom (share administrator).
108


Further, based on the Extraordinary General Stockholders Meeting (RUPSLB) held on June 18, 2012
and based on notarial deed No. 88 dated June 18, 2012 of Aryanti Artisari, S.H., M.Kn., notary in
Jakarta, the stockholders approved the issuance of 74,872,600 new authorized shares series C (3% of
issued and paid-up capital) without preemptive rights in the framework of Grant Date II of stock
options programme to the Companys management and employees (Management Employee Stock
Option Programme / MESOP). Based on the Companys schedule that was reported to PT Bursa Efek
Indonesia dated March 17, 2012, this program will be implemented as follows :
Period
I
II
III
IV
Implementation Period
Starting from December 15, 2012 up to December 22, 2012
Starting from June 18, 2013 up to June 24, 2013
Starting from December 18, 2013 up to December 24, 2013
Starting from June 2, 2014 up to June 24, 2014
Until now, it has not yet been implemented because the Company will execute them at the second
period (June 2013).
According to notarial deed of DR. H. Teddy Anwar, S.H., Spn. No. 111 dated August 16, 2002, the
part of PT Multikarsa Investamas shares of 2,454,081,290 (or after reverse stock 122,704,064 shares)
were sold to PT Bina Prima Perdana. However, based on the data issued by PT Datindo Entrycom, the
shares are still registered under the name of PT Multikarsa Investama.
As of December 31, 2012, 2011 and 2010, the shares owned by the public included those owned by
the directors of the Company (Mr. Seeniappa Jegatheesan and Mr. Peter Vinzenz Merkle), who held
29,716,099 shares, 2,388 shares, and 2,388 shares, respectively.
31. ADDITIONAL PAID-IN CAPITAL

2012
US$
Paid-in capital in excess of par value from
public offering in 1990
Shares issuance cost
Subtotal
conversion of debt to equity in 2006
109
2011
US$
2010
US$
13,571,804
(7,263,223)
13,571,804
(7,263,223)
13,571,804
(7,263,223)
6,308,581
6,308,581
6,308,581
618,017,022
618,017,022
618,017,022

31. ADDITIONAL PAID-IN CAPITAL (Continued)

2012
US$
1st MESOP in 2012
Shares issuance cost
Subtotal
Total additional paid-in capital
2011
US$
2010
US$
65,516
(46,612)
18,904
624,344,507
624,325,603
624,325,603
As per the Composition Proposal (Rencana Perdamaian) the Company is issuing 16,780,718,747
shares series C to unsecured creditors and 26,363,520,000 shares series C for Damiano Investments
BV., Netherland in regard to debt to equity conversion of Rp 5,660,802,013,000.
Further, based on the amendment of the Companys Articles of Association dated July 4, 2006 by
notarial deed No. 12 of Aulia Taufani, S.H., the Company has recognized the advances for future stock
subscription of Rp 5,660,802,013,000 as issued and paid-in capital amounting to Rp 86,288,477,500
and as additional paid-in capital amounting to Rp 5,574,513,535,500 (equivalent to US$ 618,017,022).
Through the the framework of Grant Date I of stock options programme in February 23, 2012, the
Company received Rp 5,348,042,865 for the issuance of 118,845,397 new authorized shares series C,
with a nominal value amounting to Rp 40 per share. The conversion rate of US$ 1 is Rp 9,070.
32. APPROPRIATION FOR GENERAL RESERVE

Under Indonesian Limited Company Law, the Company is required to set up a statutory reserve
amounting to at least 20% of the Companys issued and paid up capital.
And, based on the annual general stockholders meeting as stated in notarial deed No. 351 dated June
23, 1997 and No. 402 dated June 24, 1996 of Adam Kasdarmadji S.H., notary in Jakarta, the
stockholders agreed to appropriate a general reserve aggregating Rp 8,280,000,000 (equivalent to
US$ 2,345,301) from retained earnings in accordance with article 61 of the Corporate Law No. 1 year
1995 for Limited Liability Companies. In 2012, 2011 and 2010, the Company was exempted from
reserving additional amounts due to its accumulated deficit.
110

33. NON-CONTROLLING INTERESTS

In 2011 and 2010, the non-controlling interest represents the non-controlling interest in net liabilities
of Subsidiary derived from :
Balance as of
December 31,
2010
US$
(8% ownership in
PT Texmaco Jaya Tbk
Equity in net
Profit of
Subsidiary
US$
112,005
(16,494,680)
Balance as of
January 1, 2010
US$
(8% ownership in
PT Texmaco Jaya Tbk
Written-off due
to lost control
US$
(15,031,748)
16,382,675
Equity in net profit

of Subsidiary
US$
1,462,932
Balance as of
December 31,
2011
US$
Balance as of
December 31, 2010
US$
(16,494,680)
Deduction in 2011 represents the deduction of non-controlling interests which financial statements
were no longer consolidated in 2011 due to the Subsidiary (PT Texmaco Jaya Tbk) is stated at
bankruptcy and insolvency so it caused that the Company have lost of control. Consequently, the
amount has been written-off from the consolidated statements of financial position and adjusted to
retained earning (accumulated deficit).
34. EARNINGS (LOSS) PER SHARE

a. Basic earnings (loss) per share
2012
US$
Weighted average number of shares outstanding
Total comprehensive loss attributable to
owners of the Company
Basic loss per share attributable to the
111
2011
US$
2,443,876,388
2,388,317,108
(32,118,811 )
(8,952,775 )
(0.01 )
(0.00)

34. EARNINGS (LOSS) PER SHARE (Continued)

b. Dilluted earnings (loss) per share
2012
US$
Weighted average number of shares outstanding
Total comprehensive loss attributable to
2011
US$
2,431,991,848
2,388,317,108
(32,118,811 )
(8,952,775 )
(0.01 )
(0.00)
Dilluted loss per share attributable to the

c. Reconciliation of earnings used in calculating earning per share
2012
US$
Total comprehensive loss attributable
to owners of the Company used in calculating
basic earnings per share
Adjustments for calculation of diluted earnings
per shares regarding the share options
Total comprehensive loss attributable
to owners of the Company used in calculating
diluted earnings per share
(32,118,811 )
(32,118,811 )
2011
US$
(8,952,775 )
(8,952,775 )
d. Weighted average number of shares used as the denominator

2012
Weighted average number of ordinary shares
used as the denominator in calculating basic
earnings (loss) per share before stock option
Adjustment regarding the issuance of stock option
used as the denominator in calculating basic
earnings (loss) per share after stock option
Adjustments for calculation of diluted earnings (loss)
per shares regarding the share options
used as the denominator in calculating
diluted earning (loss) per share
112
2011
2,443,876,388
2,376,907,950
1.0048
2,443,876,388
2,388,317,108
(11,884,540)
2,431,991,848
2,388,317,108

34. EARNINGS (LOSS) PER SHARE (Continued)

e. Information concerning the classification of securities for diluted earning per share
Options granted to employees are considered to be potential ordinary shares and have been
included in the determination of diluted earning per share to the extent to which they are dilutive.
A calculation is done to determine the number of shares that could have been acquired at fair
value (determined as the average market share price of the Companys shares) based on the
monetary value of the subscription rights attached to outstanding share options. The number of
shares calculated as above is compared with the number of shares that would have been issued
assuming the exercise of the share options.
The options have not been included in the determination of basic earning per shares.
35. NON-CASH TRANSACTIONS

In 2012, 2011 and 2010, the principal non-cash transaction consist of :
a. An acquisition vehicles by means of credit financing payable as discussed in Note 26.
b. A reclassification of interest payables from accrued expenses to unsecured debts and notes
payables as discussed in Note 24.
36. INSURANCE CLAIM SETTLEMENT, NET

This account represents the settlement of insurance claim on inventory loss from damage or inventory
loss from theft. The settlement received by the Company in 2012 and 2011 amounting to
US$ 1,667,691 (equivalent to Rp 14,963,001,657) and US$ 86,182 (equivalent to Rp 755,425,253),
respectively.
37. NET SALES

2012
US$
Local
Yarn
Fibre
Chips
Fleece (Knitting)
Bonded (Coating)
Others
113
2011
US$
220,424,369
218,908,889
46,116,172
10,298,045
67,368
1,726,343
217,436,772
224,661,910
56,044,474
2,065,550
196,869
480,247
497,541,186
500,885,822

37. NET SALES (Continued)

2012
US$
Export
Yarn
Chips
Fibre
Fleece (Knitting)
PTA
Bonded (Coating)
Others
Total net sales
2011
US$
75,079,171
17,048,390
7,540,421
877,827
1,243,881
104,401,090
11,920,054
12,341,649
1,351,748
4,569,273
65,082
101,789,690
134,648,896
599,330,876
635,534,718
In 2012 and 2011, net sales of fleece (knitting) and bonded (coating) were US$ 11,243,240 and
US$ 3,679,249, respectively consists of sales to third parties. The product is manufactured by PT
Texmaco Jaya Tbk (under bankruptcy) based on the tolling basis.
In 2012 and 2011, no sales were earned from sales to related parties.
In 2012 and 2011, no sales to third parties exceeded 10% of the operating revenues.
38. OTHER OPERATING REVENUES

2012
US$
2011
US$
Indirect materials damage

Product non-standard and others
601,480
599,395
255,731
277,313
Total other operating revenues
1,200,875
533,044
In 2012 and 2011, other operating revenues of fleece, bonded and garment was US$ 83,216 and
US$ 108,278 represent the other operating revenues to third parties. The product is manufactured by
PT Texmaco Jaya Tbk (under bankruptcy) based on the tolling basis.
In 2012 and 2011, no other operating revenues were earned from related parties.
In 2012 and 2011, no sales to third parties exceeded 10% of the operating revenues.
114

39. COST OF GOODS SOLD

2012
US$
Raw materials
At beginning of year
Purchases
2011
US$
28,114,454
384,877,731
10,605,240
436,498,322
Available for use

At end of year
412,992,185
(19,078,632)
447,103,562
(28,114,454)
Raw materials used
393,913,553
418,989,108
Indirect materials
Purchases
17,702,072
57,631,156
15,705,458
54,813,451
75,333,228
(20,014,977)
70,518,909
(17,702,072)
55,318,251
52,816,837
10,003,762
146,278,804
8,611,682
158,847,893
605,514,370
639,265,520
Available for use

At end of year
Indirect materials used
Direct labour
Manufacturing expense (Note 40)
Total manufacturing cost
Work in process
At end of year
6,781,122
(6,073,039)
Cost of goods manufactured

Finished goods
Purchases
At end of year
Total cost of goods sold
4,824,283
(6,781,122)
606,222,453
637,308,681
35,079,711
(34,787,985)
19,839,474
120,120
(35,079,711)
606,514,179
622,188,564
In 2012 and 2011, total raw material and indirect material used included the raw material used for
fleece (knitting) and bonded (coating) product after eliminated intercompany account were
US$ 3,145,012 and US$ 1,248,113, respectively.
115

39. COST OF GOODS SOLD (Continued)

In 2012 and 2011, there are no purchases from related parties.
In 2012, purchases from third parties exceeded 10% of total purchases are as follows :
2012
US$
PT Cipta Karya Persada
Kolmar Petrochemicals AG, Switzerland
PT Polychem Indonesia
Percentage
147,310,623
95,991,285
85,537,650
33.29%
21.69%
19.33%
In 2011, purchases from third parties exceeded 10% of total purchases are as follows :
2011
US$
PT Cipta Karya Persada
Kolmar Petrochemicals AG, Switzerland
PT Polychem Indonesia
160,219,417
115,454,640
113,266,628
Percentage
32.61%
23.50%
23.05%
40. MANUFACTURING EXPENSES

2012
US$
Depreciation expense of property, plant and equipment
(Note 16)
Electricity and gas
Freight
Processing fee (tolling)
Rental
Repair and maintenance
Salary and allowances
Insurance
Others
Total manufacturing expenses
2011
US$
69,574,411
57,256,598
4,680,362
3,003,021
2,480,839
2,059,569
1,321,414
1,085,007
4,817,583
86,134,534
53,550,215
6,406,043
2,796,071
2,198,761
2,167,874
1,501,741
905,289
3,187,365
146,278,804
158,847,893
In 2012, the processing fee (tolling) of US$ 3,003,021 represent the processing fee to PT Texmaco
Jaya Tbk (under bankruptcy) amounting to US$ 763,471, PT Multikarsa Investama amounting to
US$ 2,223,148, and other parties amounting to US$ 16,402. And in 2011, the processing fee (tolling)
of US$ 2,796,071 represent the processing fee to PT Texmaco Jaya Tbk (under bankruptcy)
amounting to US$ 219,918, PT Multikarsa Investama amounting to US$ 2,179,023 and other parties
amounting to US$ 21,251 (Note 46)
116

40. MANUFACTURING EXPENSES (Continued)

In 2012 and 2011, rental expense to PT Texmaco Jaya Tbk (under bankruptcy) was US$ 201,348 and
US$ 275,959, respectively (Note 46).
41. SELLING EXPENSES

2012
US$
2011
US$
Export charges
Freight
Marketing expenses
Advertising and promotion
Others
5,391,323
5,522,075
2,794,758
20,796
323,242
4,917,356
5,321,648
2,965,769
18,712
501,914
Total selling expenses
14,052,194
13,725,399
42. GENERAL AND ADMINISTRATIVE EXPENSES

2012
US$
Salaries, wages and benefits
Employees entitlement (Note 28)
Professional fees
Business traveling
Rent
Communication
Donation and Corporate Social Responsibility
Stationery
Repairs and maintenance
Entertainment and representation
Depreciation expense of property, plant and
equipment (Note 16)
Electricity and water
Insurance
Amortization expenses (Note 17)
Tax expenses
Others
8,601,313
2,737,627
1,815,789
1,104,199
877,955
460,601
300,344
246,932
170,182
116,815
Total general and administrative expenses
17,843,646
95,849
65,664
36,620
497
(235,419 )
1,448,678
117
2011
US$
7,843,534
2,547,290
885,210
1,155,441
761,530
474,970
244,009
264,641
147,400
117,175
91,527
80,398
18,094
2,580,763
1,514,840
18,726,822

43. FINANCE COSTS

2012
US$
Finance costs :
Interest expense from working capital loan (Note 25)
Interest expense from unsecured debts and
notes payable (Note 24)
Interest expense from credit financing payables
(Note 26)
2011
US$
(2,936,962)
(4,586,244)
(885,278)
(861,026)
(12,287)
(15,140)
Total interest expense

Fee on Bank loans (Note 20)
Bank charges
(3,834,527)
(13,969,873)
(472,845)
(5,462,410)
(10,433,384)
(440,611)
Total finance costs
(18,277,245)
(16,336,405)
Finance Income :
Interest income from current accounts and
time deposits
31,754
Total finance cost, net
(18,245,491)
21,064
(16,315,341)
44. MISCELLANEOUS INCOME, NET

2012
US$
Penalty regarding the cancellation of sales
Rebate on purchasing chemicals
Income from land rental
Collectible of allowance for impairment (Note 8)
Others
Total miscellaneous income, net
383,000
179,000
157,044
81,878
2011
US$
341,339
172,179
78,985
30,499
238,028
879,907
782,045
45. DISCOUNTINUED OPERATIONS

On August 19, 2011, the Commercial Court of Central Jakarta declared that PT Texmaco Jaya Tbk
(Subsidiary) is in state of bankruptcy and insolvency. Effective this period, the Subsidiary becomes
subject to the control of the Court, causing the Company loss its control in the Subsidiary. The Court
has been appointed team curator for saving the asset value of the bankruptcy and monitor the
Subsidiarys operations and cash flows.
118

45. DISCOUNTINUED OPERATIONS (Continued)

In accordance with PSAK No. 4 (Revised 2009), if the Company losses control of a Subsidiary,
therefore the Company should derecognizes the assets and liabilities of the Subsidiary at the their
carrying amounts at the date when control is lost and derecognizes the carrying amount of any noncontrolling interests in the former Subsidiary at the date when control is lost.
Revenue and expenses, gains and losses relating to the discountinuation of this Subsidiary have been
eliminated from profit or loss of the Companys continuing operations and are shown as a single line
item on the face of the consolidated statement of comprehensive income. PT Texmaco Jaya Tbks
operating profit or loss until the loss of control (August 19, 2011) are summarized as follows :
2011
US$
Operating revenues
Cost of goods sold
(362,851)
Gross loss
(362,851)
Operating expenses :
Selling expenses
(1,987)
(632,133)
(634,120)
Total operating expenses

Loss from operations
(996,971)
Other income (charges) :

Interest income
Loss on foreign exchange transactions
Depreciation expenses of unused property, plant and equipment (Note 16)
Interest expense and bank charges
262
(3,010,884)
(1,224,418)
(83,904)
2,902
Total other income, net
(4,316,042)
Loss before income tax

Tax expenses (Note 29e)
(5,313,013)
(1,083,368)
Total comprehensive loss for the year
(6,396,381)
119


The carrying amounts of assets and liabilities in PT Texmaco Jaya Tbk (under bankruptcy) as of
August 19, 2011 are as follows :
As of August 19, 2011
US$
Current assets :
Other receivables
Inventories
Purchase advances
Prepaid taxes
35,518
22,991
332,509
49,485
39,670
Total current assets
480,173
Non-current assets :
Non-trade receivables from related party
Deferred tax assets
9,989,391
770,196
58,452,622
13,486,963
Total non-current assets
82,699,172
TOTAL ASSETS
83,179,345
Current liabilities :
Short-term loans
Notes payable
Trade payables
Liabilities for purchase of property, plant and equipment
Taxes payable
Accrued expenses
Current portion of obligation under finance lease
36,716,382
20,467,597
5,225,337
30,476
348,716
23,287,008
4,300,981
14,992,195
Total current liabilities
105,368,692
Non-current liabilities :
Employees benefit liabilities
1,652,239
Total non-current liabilities
1,652,239
TOTAL LIABILITIES
107,020,931
TOTAL NET LIABILITIES
(23,841,586)
120


The financial statements of PT Texmaco Jaya Tbk (Subsidiary) for the period January 1, 2011 up to
August 19, 2011 were complied by the Subsidiary (Unaudited).
Since the Company losses control of a subsidiary (PT Texmaco Jaya Tbk), the Company recognized
the net liabilities of the Subsidiary totaling of Rp 656,593,951,279 (equivalent to US$ 23,841,586) as
gain on disposal of Subsidiary and were presented after the taxation in the consolidated statements of
Until now, the progress of the curator team is completing the debt verification and in the near future,
they will make a tender to sell the Subsidiarys property, plant and equipments that was consists of
factorys machineries and equipments in Pemalang and Karawang.
The bankruptcy or liquidation of Subsidiary (PT Texmaco Jaya Tbk) will have little impact to PT Asia
Pacific Fibers Tbk (parent Company) now, as the operations of the Subsidiary had stopped since year
2004. However, with the existence of net liabilities in Subsidiary and disposal of Subsidiary, PT Asia
Pacific Fibers Tbk as parent Company do not have an liabilities regarding the settlement of the
Subsidiarys liabilities to the other creditors, and also the Company do not get the gain regarding the
disposal of Subsidiary in the future.
46. NATURE AND TRANSACTION WITH RELATED PARTIES

Nature of relationships and transaction with related parties :
Nature of
relationship
Name of related parties

Transaction
Stockholder
Stockholder
Affiliated Company
Stockholder
Loans, shareholder
Loans, tolling arrangement
Loans, tolling arrangement
Shareholder
Related Parties Transactions

In the normal course of business, the Company and its Subsidiaries entered into certain business and
financial transactions with related parties. These transactions are normally made at normal price and
conditions as of they were done with non-related parties. These transactions are as follows :
2012
US$
Trade receivables
27,789,291
121
2011
US$
29,634,147
Percentage to total
Assets/ Liabilities
/Expenses
2012
2011
%
%
6.89
6.55

46. NATURE AND TRANSACTION WITH RELATED PARTIES (Continued)

Related Parties Transactions (Continued)
2012
US$
2011
US$
Percentage to total
Assets/ Liabilities
/Expenses
2012
2011
%
%
Non-trade receivables from

related parties
32,474,040
34,996,344
8.05
7.73
Bank loans
78,752,462
70,339,624
6.56
5.77
664,778,224
664,373,826
55.35
54.51
0.00
Secured debts
Trade payables
Accrued expenses
7,150
404,920
106,835
0.03
0.00
17,340,000
23,000,000
1.44
1.89
Manufacturing expense
3,187,967
3,075,422
0.50
0.38
Compensation representing salary was given to the Companys Commissioners and Directors for
the years ended December 31, 2012 and 2011 amounting to Rp 6,940,860,309 and
Rp 5,182,030,423, respectively. No contribution to retirement benefits, entitlement benefits and
any other special benefits were given during the year 2012 and 2011.
47. SIGNIFICANT AGREEMENTS

Tolling Agreement with PT Texmaco Jaya Tbk (under bankruptcy)
On April 1, 2008, the Company arranged the tolling / rental agreement with PT Texmaco Jaya Tbk
for a period of twelve (12) months and can be renewed. This agreement is prepared because the
Subsidiary does not have the necessary working capital to service the orders from its customers.
Based on this agreement, the Company should pay the conversion charges that consisting of tolling
fee, building and machinery rental to PT Texmaco Jaya Tbk each month. The tolling fees are
calculated based on the production results.
On August 3, 2009, the Company arranged the amendment of tolling agreement with PT Texmaco
Jaya Tbk for a period of three (3) months and can be renewed. Based on this agreement, the Company
should pay the tolling fee of US$ 1.20 per yard with the minimum production results of 100,000 yards
to PT Texmaco Jaya Tbk each month. And on October 23, 2009, the Company renewed the tolling /
rental agreement for seven (7) months from November 1, 2009 up to June 30, 2010.
122

47. SIGNIFICANT AGREEMENTS (Continued)

Tolling Agreement with PT Texmaco Jaya Tbk (under bankruptcy) (Continued)
On July 15, 2010, the Company arranged the amendment of tolling agreement with PT Texmaco Jaya
Tbk for fifthteen (15) months from July 1, 2010 up to September 30, 2011 and can be renewed. Based
on this agreement, the Company should pay the tolling fee of US$ 1.20 per yard for the contract
period from July 1, 2010 up to September 30, 2010, and US$ 0.75 per yard for the contract period
from October 1, 2010 up to September 30, 2011.
On January 10, 2011, the Company arranged the amendment of tolling agreement with PT Texmaco
Jaya Tbk for five (5) years from January 1, 2011 up to December 30, 2016 and can be renewed for
three (3) years later. Based on this agreement, the Company should pay the tolling fee of US$ 0.30
per kgs and at least US$ 50,000 per month.
Further, based on the latest amendment of tolling agreement with PT Texmaco Jaya Tbk (under
bankruptcy) dated March 23, 2012, the Company agreed to pay the tolling fee of US$ 0.30 per kgs
and subject to minimum fee of US$ 64,000 per month.
Warehouse Agreement with PT Texmaco Jaya Tbk (under bankruptcy)

Based on the land rental agreement dated June 15, 2009 between the Company and PT Texmaco Jaya
Tbk (under bankruptcy), the Company agreed to rent the land for 950 meters of gas pipe, 1,500
meters of water pipe, 800 meters of water pump facility and 1,000 meters of electricity cable. This
agreement is valid for thirty (30) years from January 1, 2010 up to December 31, 2040. As
consequently, the Company should pay the rental expenses amounted to Rp 100,000,000 per month.
Based on the warehouse rental agreement dated March 30, 2011 between the Company and
PT Texmaco Jaya Tbk (under bankruptcy), the Company agreed to rent the warehouse for ten (10)
months from March 1, 2011 up to December 31, 2011. Based on the amendment agreement dated
June 28, 2012, the Company agreed to extent the warehouse rental up to December 31, 2012. Further,
on December 28, 2012, this agreement has been extended till June 30, 2013. As consequently, the
Company should pay the rental expenses amounted to Rp 43,200,000 per month.
Based on the warehouse rental agreement dated November 17, 2011 between the Company and PT
Texmaco Jaya Tbk (under bankruptcy), the Company agreed to rent the warehouse for three (3)
months from November 17, 2011 up to February 17, 2012. Based on the amendment agreement dated
February 15, 2012, the Company agreed to extent the warehouse rental for six (6) months from
February 17, 2012 up to August 17, 2012. Further on August 16, 2012, this agreement has been
extended till February 16, 2013, and the re-extended is still in process. As consequently, the Company
should pay the rental expenses amounted to Rp 9,000,000 per month.
123

47. SIGNIFICANT AGREEMENTS (Continued)

Warehouse Agreement with PT Texmaco Jaya Tbk (under bankruptcy) (Continued)
Based on the warehouse rental agreement dated January 2, 2012 between the Company and
PT Texmaco Jaya Tbk (under bankruptcy), the Company agreed to rent the chiller machinery for one
(1) years from January 2, 2012 up to December 31, 2012. Further, based on the amendment agreement
dated November 28, 2012, the Company agreed to extent the warehouse rental for six (6) months
from December 1, 2012 up to May 31, 2013. As consequently, the Company should pay the rental
expenses amounted to Rp 5,000,000 per month.
Warehouse Agreement with PT Texmaco Taman Synthetics

Based on the rental agreement dated August 1, 2011 between the Company and PT Texmaco Taman
Synthetics, the Company agreed to rent the laboratory equipments for five (5) years from August 1,
2011 up to July 31, 2015. As consequently, the Company should pay the rental expenses amounted to
Rp 99,000,000 per month.
Gas Turbine with PT Wismakarya Prasetya

The Company and PT Wismakarya Prasetya (WKP) are operationally integrated as the production of
electricity and steam are consumed only by the Company. Since 2004, the Company has been
providing working capital support to WKP for the payment of old dues to PGN, PLN and Tax.
Subsequent to the change of majority shareholders of the Company in 2006, the Company has entered
into an agreement with WKP for the sale purchase of electricity, steam and gas on August 14, 2006.
The Company has offered to increase the price of electricity and steam in line with the increase in the
price of gas, vide its letter in April 22, 2010. Additionally, the Company would incur the cost of
maintenance of turbines as per the standard running hours. The Company should pay the monthly
electricity, steam and gas based on their consumption. Additionally, the Company would incur the
cost of maintenance of turbines as per the standard running hours as a part of cost of purchase of
electricity. This agreement is valid for a period of 5 years, and due on April 22, 2015. The Company
has also fully provided for the Bank guarantee through SBLC for an amount of US$ 5,170,094 and
Rp.16,498,800,000 as of March 2013 equivalent to two (2) months consumption of gas, as required
by the Gas Supply Contract of PGN. The contract for the supply of gas to WKP is due for extension
by end of March 2013.
The Company and PT Wismakarya Prasetya (WKP) are engaged in the commercial discussion for
finalizing the prices to be effective from January 1, 2013. WKP has made claims for the past period
which are not commercially viable. In order to firm up the claim on WKP arising on account of sales
advance, the Company has filed a legal suit through Karawang Court and issued a Default Notice to
WKP on December 14, 2012 as per the agreement entered into between the Company
(Polysindo/APF) and WKP on November 16, 2006. WKP has also confirmed their dues to the
Company as at the end of the year 2012.
124

48. COMMITMENT
(a) Capital Commitments
The capital expenditure committed but not yet inccurred as of December 31, 2012 is
US$ 14,000,000.
Amount outstanding above is relating to commitment made by the Company in development and
increase in the Companys filament yarn and fiber capacity. The commitment has to be exercised
at the year 2013.
(b) Operating Lease Commitments
The Company leases various warehouse under non-cancellable operating lease agreements. The
lease terms are between 1 (one) year up to thirty (30) years, and the majority of lease agreements
are renewable at the end of the lease period.
The following are counterparties of the Companys lease commitments :
Counterparties
Leased items
Period of
agreement
PT Texmaco Jaya Tbk

(under bankruptcy)
Warehouse at
Karawang
January 1, 2013
June 30, 2013
Rp 43,200,000
each month
Warehouse at
Karawang
August 16, 2012

February 16, 2013
Rp 9,000,000
each month
Warehouse at
Karawang
December 1, 2012
May 31, 2013
Rp 5,000,000
each month
Land at Karawang
January 1, 2010
January 1, 2040
Rp 100,000,000
each month
Warehouse at
Semarang
August 1, 2011
July 31, 2015
Rp 99,000,000
each month
PT Texmaco Taman
Synthetics
Amount (Rp)
The future aggregate minimum lease payment under non-cancellable operating leases are as
follows :
2012
US$
No later than 1 year
Later than 1 year and no later than 5 years
Later than 5 years
Total
125
2011
US$
278,201
690,900
2,730,093
331,172
867,681
3,043,670
3,699,194
4,242,523

49. CONTINGENCIES
The Directorat Jenderal Pajak has filed a Review Petition against the verdict of the tax court for
the refund of Rp 13,090,399,058 on November 24, 2010. If the Review Petition filed by the
Directorat Jenderal Pajak is won, then the entire refund amount became payable along with the
accrued interest till the date of refund. Until the date of report finished, the result has not been
determined yet.
Effective August 19, 2011, one of Subsidiary (PT Texmaco Jaya Tbk) becomes subject to the
control of Court, causing the Company to lose its control. The Count has already set a Supervisory
Judge and curator team to maintain and monitor the operation of bankruptcy assets and cash flows
of the Subsidiary. Net liabilities at the date of lost its control is Rp 656,593,951,279. PT Asia
Pacific Fibers Tbk as parent Company do not have obligation regarding the creditors payables of
Subsidiary.
Based on the correspondence letter from PT Bina Prima Perdana dated August 8, 2011, PT Bina
Prima Perdana claims from the Company being the guarantor of the Subsidiarys loans from Bank
Dharmala and Bank Arya. However, the management of the Company mentioned that the above
guarantees (promissory note) were not registered by PT Bina Prima Perdana during the debt
verification by the curator of PT Asia Pacific Fibers Tbk (formerly PT Polysindo Eka Perkasa
Tbk) during its bankruptcy process in 2005, and consequently, the above claims of PT Bina Prima
Perdana were not valid. In addition, the restructuring process of unsecured debt in PT Asia Pacific
Fibers Tbk has been completed.
The Companys land certificates with HGB No. 13 and HGB No. 14 located in Kiara Payung,
Kec. Klari, Karawang have been pledged to PT Bank Negara Indonesia/ PT Bina Prima Perdana in
respect of secured debts of PT Texmaco Jaya Tbk (under bankruptcy). PT Bina Prima Perdana has
claimed with its letter dated February 21, 2013 amounted to Rp 19 billion from the Company for
the release of the pledge. This is under discusson with PT Bina Prima Perdana (Note 16).
50. SEGMENT INFORMATION

The Board of Director is the Companys chief operating decision-maker.
Management has determined the operating segments based on the information reviewed by the Board
of Director for the purposes of allocating resources and accessing performance.
The Board of Director considers the business from both a geographic and product perspective.
Geographically, management considers the performance in Indonesia, Asia, America, Europe,
Australia and Africa. From a product perspective, management separately considers the business
segment are as follows :
126

50. SEGMENT INFORMATION (Continued)

1. Chemical industry and synthetic fibre
2. Weaving and knitting
Although the weaving and knitting segment does not meet the quantitative thresholds required by
SFAS 5 for reportable segments, management has conclude that this segment should be reported, as it
is closely monitored by the strategic steering committee as a potential growth and is expected to
materially contribute the Companys revenue in the future.
2012
Chemical
Industry and
Synthetic fibre
US$
Weaving
and
Knitting
US$
Others
US$
Elimination
US$
Total
US$
498,742,061
SEGMENT SALES :
External sales
Local
Export
Asia
America
Europe
Australia
Africa
Total Export
Inter segment sales
Total segment sales
Segment result
488,293,432 10,448,629
35,709,104
28,909,074
16,744,050
11,259,124
8,290,511
691,483
186,344
36,400,587
28,909,074
16,930,394
11,259,124
8,290,511
100,911,863
877,827
101,789,690
216,141,901
(216,141,901)
805,347,196 11,326,456
(216,141,901) 600,531,751
(8,447,903) 2,465,475
(5,982,428)
(17,532,078)
Unallocated expenses
(16,806,846)
(25,254,749) 1,740,243
Finance costs
(18,213,903)
(43,468,652) 1,708,655
Tax income
(725,232)
(31,588)
(23,514,506)
(18,245,491)
(41,759,997)
0
9,641,186
Total loss for the year from

continuing operation
(32,118,811 )
Discountinued operation :
Loss from disposal of Subsidiary
Total loss for the year (Carried forward)
(32,118,811)
127

2012
Chemical
Industry and
Synthetic fibre
US$
Weaving
and
Knitting
US$
Others
US$
Elimination
US$
Total loss for the year (brought forward)
Total
US$
(32,118,811)
Other comprehensive income, net after tax
(32,118,811)
STATEMENT OF FINANCIAL
POSITION :
Segment assets
Segment liabilities
(399,690,163) (3,541,552)
1,200,226,996
789,213
(20,576)
(403,252,291)
74,931
1,201,091,140
OTHER INFORMATION :
Capital expenditures
(14,082,392)
(145,391)
(14,227,783)
Depreciation
(69,656,131)
(14,129)
(69,670,260)
2011
Chemical
Industry and
Synthetic fibre
US$
Weaving
and
Knitting
US$
Others
US$
Elimination
US$
Total
US$
SEGMENT SALES :
External sales
Local
Export
Asia
America
Europe
Australia
Africa
Total Export
Inter segment sales
Total segment sales
499,048,169
2,370,697
501,418,866
53,301,178
39,201,161
24,353,250
8,745,493
7,630,984
1,126,920
289,910
54,428,098
39,201,161
24,643,160
8,745,493
7,630,984
133,232,066
1,416,830
134,648,896
228,753,393
24,016
(228,777,409)
861,033,628
3,811,543
(228,777,409) 636,067,762
128


Chemical
Weaving
Industry and
and
Synthetic fibre Knitting
US$
US$
2011
Others
US$
Elimination
US$
Total
US$
11,864,104 2,015,094
13,879,198
Unallocated expenses
(33,504,268) (237,916)
(33,742,184)
(21,640,164) 1,777,178
(19,862,986)
Finance costs
(16,303,683)
(16,315,341)
(37,943,847) 1,765,520
(36,178,327)
RESULT :
Segment result
(11,658)
Tax income
9,892,352
Total loss for the year from

continuing operation
(26,285,975 )
Total profit from discountinued operation
17,445,205)
(8,840,770)
Other comprehensive income, net after tax
(8,840,770)
STATEMENT OF FINANCIAL
POSITION :
Segment assets
(450,827,948) (1,786,788)
Segment liabilities
1,217,589,825 1,233,623
(20,576)
(452,635,312)
74,931
1,218,898,379
OTHER INFORMATION :
Capital expenditures
Depreciation
(9,003,874)
(2,107)
(9,005,981)
(86,220,674)
(5,387)
(86,226,061)
The following table shows the carrying amount of segment non-current assets and additions to
property, plant and equipment by geographical area in which the assets are located :
Carrying amount non-current assets
December 31,
January 1,
December 31,
2012
2011
2011
US$
US$
US$
Indonesia
129,407,396
184,837,123
262,057,203
129
Additions to property, plant and equipment

December 31,
December 31,
2012
2011
US$
US$
14,227,783
9,005,981

51. NET MONETARY

CURRENCIES
ASSETS
AND
LIABILITIES
DENOMINATED
IN
FOREIGN
The Company has assets and liabilities denominated in foreign currencies as follows:
2 0 1 2
Foreign
Currency
2 0 1 1
Equivalent in
US$
Foreign
Currency
Equivalent in
US$
Assets :
IDR
EUR
SGD
NOK
15,953,468,926
6,277
8,125
1,108
1,649,790
8,315
6,644
170
14,214,328,653
2,348
8,261
1,108
1,567,526
3,039
6,354
161
Trade receivables :
Third parties
Related parties
IDR
IDR
2,019,778,766
268,722,447,174
208,871
27,789,291
102,616,673
268,722,447,174
11,316
29,634,147
Other receivables
IDR
20,275,727,220
2,096,766
18,212,026,112
2,008,384
IDR
10,248,315,332
1,059,805
5,237,815,332
577,615

related parties
IDR
339,799,791,085
35,139,585
341,518,009,452
37,661,889
Other non-current financial

assets
IDR
3,959,414,637
409,454
3,959,414,637
436,636
Total assets
68,368,691
71,907,067
Liabilities
Trade payables :
Third parties
Related parties
IDR
YEN
SGD
GBP
EUR
SEK
IDR
30,425,613,348
4,780,473
27,904
284,392
5,128,579
69,142,248
3,146,392
55,368
22,817
376,738
789,041
7,150
35,088,919,356
3,779,861
32,654
16,660
136,455
3,869,532
48,770
25,113
25,665
176,648
Accrued expenses
IDR
413,168,541,805
42,726,840
411,036,714,332
45,328,266
Secured Debts
IDR
EUR
YEN
CHF
1,344,552,714,414
15,688,978
3,001,711,400
45,902
139,043,714
20,783,207
34,756,139
50,302
1,344,552,714,414
15,688,978
3,001,711,400
45,902
148,274,450
20,310,187
38,664,463
48,779
Other short-term liabilities :

Third parties
IDR
18,295,341,577
1,891,973
9,296,681,940
1,025,219
Credit Financing Payables
IDR
1,162,192,835
120,186
957,211,258
105,559
Long-term employee benefit
IDR
99,356,704,849
10,274,737
77,637,935,506
8,561,749
Total liabilities
Net liabilities
130
254,044,604
266,464,400
(185,675,913 )
(194,557,333 )

51. NET MONETARY ASSETS

CURRENCIES (Continued)
AND
LIABILITIES
DENOMINATED
IN
FOREIGN
Monatary assets and liabilities mentioned above are translated using Bank Indonesia closing rate as at
December 31, 2012 and 2011.
52. FINANCIAL ASSETS AND LIABILITIES

The fair value of financial assets and liabilities are recorded in which the instrument could be
exchanged in the transaction between the willing parties, not in sales due to financial difficulties or are
forced liquidation.
The following methods and assumptions were used to estimate the fair value of each class of financial
instrument for which it is practicable to estimate such value :
Short-term financial assets and liabilities with remaining maturities of one (1) year or less (cash
and cash equivalents, trade receivables, other receivables, other current financial assets, trade
payables, accrued expenses, and other short-term financial liabilities). The net carrying value of
these financial assets and liabilities is considered a reasonable approximation of their fair value
due to their short-term maturities.
Long-term fixed-rate financial instruments with remaining maturities over one (1) years. The fair
value of these financial assets and liabilities is determined by discounting future cash flows using
applicable interest rates from observable current market transactions for instruments with similar
terms, credit risk and remaining maturities.
Fair Value Hierarchy :
Financial assets and financial liabilities measured at fair value in the consolidated statements of
financial position are categorized in accordance with the fair value hierarchy. This hierarchy
groups financial assets and financial liabilities into three (3) levels based on the significance of
inputs used in measuring the fair value of the financial assets and financial liabilities.
The table below analyses financial instruments carried at fair value, by the valuation method.
These valuation techniques maximize the use of observable market data where it is available and
rely as little as possible on entitys specific estimates. The different levels have been defined as
follows :
a. Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.
b. Level 2 : Inputs other than quoted prices included within level 1 that are observable for the
asset or liability, either directly or indirectly.
c. Level 3 : Inputs for the asset or liability that is not based on observable market data.
Based on the above different level from fair value hierarchy, the following table represents the
Companys assets and liabilities that are measured at fair value as of December 31, 2012 and
2011:
131

52. FINANCIAL ASSETS AND LIABILITIES (Continued)

December 31, 2 0 1 2
Level 2
Level 3
US$
US$
Level 1
US$
Financial assets :
Current Assets :
Trade receivables, net
Other receivables, net
related parties
Assets
Total financial assets
Financial liabilities :
Current Liabilities:
Trade payables
Accrued expenses
Bank Loans
Secured Debts
Current portion of longterm liabilities:
Other short-term
financial liabilities
Non-current:
Unsecured Debts
and Notes Payable
Total financial liabilities
9,793,989
85,777,319
3,300,907
7,720,808
9,793,989
85,777,319
3,300,907
7,720,808
32,474,040
32,474,040
1,113,711
1,113,711
106,593,023
33,587,751
140,180,774
22,949,484
43,319,170
78,563,511
1,000,263,703
22,949,484
43,319,170
78,563,511
1,000,263,703
17,034,668
64,651
17,034,668
64,651
4,150,965
4,150,965
20,541,883
55,535
20,541,883
55,535
186,679,867
1,000,263,703
Level 2
Level 3
US$
US$
Level 1
US$
Financial assets :
Current Assets :
related parties
Assets
Total
US$
3,438,164
79,729,562
2,529,473
6,067,345
1,186,943,570
Total
US$
3,438,164
79,729,562
2,529,473
6,067,345
34,996,344
34,996,344
1,140,893
1,140,893
91,764,544
36,137,237
127,901,781
132

52. FINANCIAL ASSETS AND LIABILITIES (Continued)

Level 2
Level 3
US$
US$
Level 1
US$
Financial liabilities :
Current Liabilities:
Trade payables
Accrued expenses
Bank Loans
Secured Debts
Current portion of longterm liabilities:
Other short-term
Non-current:
Unsecured Debts
and Notes Payable
Total financial liabilities
Total
US$
23,798,883
45,606,299
70,110,366
1,012,928,220
8,191,329
57,035
8,191,329
57,035
4,251,161
4,251,161
20,019,949
14,389,581
48,524
20,019,949
14,389,581
48,524
186,473,127
1,012,928,220
23,798,883
45,606,299
70,110,366
1,012,928,220
1,199,401,347
The fair value of financial instruments that are not traded in an active market is determined by
using the valuation technique. The discount rate used to determine the present value of the net cash
inflow/outflow was based on a market interest rate and the risk premium. These valuation
techniques maximize the use of observable market data where it is available and rely as little as
possible on entitys specific estimates. If all significant inputs required to fair value an instrument
are observable, the instrument is included in Level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is
included in Level 3.
The following table presents the changes in Level 3 instruments are as follows :
Non-trade
receivables
from related
parties
US$
Other
non-current
financial
assets
US$
Beginning balance
Gain (loss) on foreign
exchange, net
Settlement of tolling expenses
34,996,344
Ending balance
32,474,040
(121,304 )
(2,401,000 )
133
1,140,893
(27,182 )
1,113,711
Secured
debts
US$
(1,012,928,220 )
12,664,517
(1,000,263,703 )
Total
US$
(974,125,438)
12,516,031
(2,401,000)
(964,010,407)

53. FINANCIAL RISK MANAGEMENT

The Company is exposed to various risks in relation to financial instruments. The main types of risks
are market risk, credit risk and liquidity risk.
The Companys risk management focuses on actively securing the Companys short-term to mediumterm cash flows by minimizing the exposure on financial markets
The Company does not actively engage in the trading of financial assets for speculative purposes nor
does it take options. The most significant financial risks to which the Company is exposed to are
described below.
a. Market Risk
The Company is exposed to market risk through its use of financial instruments and specifically to
currency risk and interest risk which result from both their operating and investing activities.
(a) Foreign Currency Risk
Most of the Companys transactions are carried out in other currencies. Exposure to currency
exchange rates arise from the Companys operational activities, which are denominated in
Indonesian Rupiah and currencies other than United States Dollar. The Company also holds
Indonesian Rupiah-denominated cash and cash equivalents.
The Company is aware of the market risk due to foreign exchange fluctuation. Management
has set up a policy to require Company to manage their foreign exchange risk against their
functional currency. There are no specific arrangements to reduce such risk exposures through
derivatives and other hedging instruments. Foreign exchange risk arises when future
commercial transactions or recognized assets or liabilities are denominated in a currency that
is not the Companys functional currency.
To mitigate the Companys exposure to foreign currency risk, the Company actively monitors
the foreign currency movements and together with principal to manage the impact of the
foreign exchange fluctuations. Foreign currency denominated financial assets and liabilities,
translated into United States Dollar at the middle rate, are stated in Assets and Liabilities in
Foreign Currency (Note 51).
The management believes that the Company is naturally hedged against foreign exchange risk.
The risk is measured using cash flow forecasts with sensitivity analysis. The table below
summarizes the sensitivity analysis to the possibility changes of foreign exchange rates, with
considering all other factors are held constant, to the consolidated statement of comprehensive
income for the year ended December 31, 2012 :
134

53. FINANCIAL RISK MANAGEMENT (Continued)

a. Market Risk (Continued)
(a) Foreign Currency Risk (Continued)
2012
US$
EUR increased by 0.10%
SEK increased by 1.16%
NOK decreased by 0.39%
SGD decreased by 1.05%
CHF decreased by 1.58%
IDR decreased by 0.20%
YEN decreased by 5.83%
(20,563)
(9,140)
28
170
798
252,714
2,029,504
Net
2,253,511
Management conducted a survey among banks to get an estimate on exchange rate of foreign
currencies until the reporting date. The estimate changes of foreign exchange rate are
increased by 0.10% for European Euro and 1.16% for Krona Swedish. And the estimate
changes of foreign exchange rate are decreased by 0.39% for Krone Norwegian, 1.05% for
Singapore Dollar, 1.58% for Swiss Franc, 0.20% for Indonesian Rupiah and 5.83% for
Japanese Yen if compared with the exchange rate on December 31, 2012.
The Companys policy is to manage the financial assets denominated in foreign currencies are
available to settle the financial liabilities denominated in foreign currencies. At December 31,
2012, the financial liabilities denominated in foreign currencies are in excess of financial
assets denominated in foreign currencies at amount of US$ 185.675.913 due to unrestructured
long-term secured debts are shown in their full value. If the above mentioned secured debts
denominated in Indonesian Rupiah and currencies other than US Dollar are not considered,
there are no excess of financial liabilities over the assets. This is a manageable level as the
loans are repayable over a period of time.
(b). Interest Rate Risk

Interest rate risk is the impact of rate changes on interest bearing assets and liabilities. The
interest risk exposure is mainly from changes in fixed rate and floating interest rates. When
considered appropriate, in order to manage the interest rate risk, interest rate swaps are entered
into to mitigate the fair value risk relating to fixed-interest assets or liabilities and the cash
flow risk related to variable interest rate assets and liabilities.
135


a. Market Risk (Continued)
(b). Interest Rate Risk (Continued)
The Companys policy is to minimize interest rate risk exposure on long-term financing.
Longer-term borrowings are therefore usually at fixed rates. At December 31, 2012 and 2011,
the Company have applied the fixed interest rates for their loans to banks, third parties and
related parties. The interest rate risk from cash and cash equivalent, and trade and other
receivables is not significant.
b. Credit Risk
Credit risk is the risk that counterparty fails to discharge an obligation to the Company. The
Company is exposed to this risk for various financial instruments, for example by granting
receivables and advances to customers and related parties.
The Company continuously monitors defaults of customers and other counterparties, identified
either individually or by group, and incorporate this information into its credit risk controls. The
Companys policy is to deal only with credit worthy counterparties. In addition, for a certain
proportion of sales, advance payments are received to mitigate risks.
The Companys maximum exposure to credit risk is limited to the carrying amount of the financial
assets as shown on the face of the consolidated statements of financial position, as summarized
below.
2012
US$
2011
US$
9,773,413
85,777,319
3,300,907
7,720,808
32,474,040
1,113,711
3,417,588
79,729,562
2,529,473
6,067,345
34,996,344
1,140,893
140,160,198
127,881,205

Non-trade receivables from related parties, net
(a) Cash and cash equivalents and other current financial assets
The credit risk for cash and cash equivalents and short-term investments are considered
negligible, since the counterparties are reputable banks with high quality external credit
ratings. The Company actively monitoring the cash and bank balances on weekly basis
136


b. Credit Risk (Continued)
(b) Trade receivables
In respect of trade receivables, the Company is not exposed to any significant credit risk
exposure to any single counterparty or any group of counterparties having similar
characteristics. Trade receivables consist of a large number of customers. Based on historical
information, the customer default rates in the settlement of receivables is low due to the
settlement from customers are normally received by the Company with in the credit term.
Moreever, some of export sales are on cash before delivery or a portion of the sales are
collected a front (prefinance). Thus, the management noted that the outstanding of trade
receivables have not impaired.
(c) Other receivables
In respect of other receivables, the Company is not exposed to any significant credit risk
exposure to any single counterparty or any group of counterparties having similar
characteristics. Based on historical information about customer default rates, management
consider the credit quality of other receivables have not impaired.
(d) Non-trade receivables from related parties

Non-trade receivables from related party represent the receivables from PT Multikarsa
Investama (related party). The Companys management stated that there is no impairment
indication that could be counted from the estimated cash flow in the future, due to
PT Multikarsa Investama is still in the debt restructuring process with PT Perusahaan
Pengelola Aset (PPA). In addition, the said value will be suitably adjusted at the time of
restructuring.
(e) Other non-current financial assets

The Companys management noted that there is no impairment indication in the restricted
cash in banks that could be counted from the estimated cash flow in the future, due to the
Company is still in the debt restructuring process with PT Perusahaan Pengelola Aset (PPA).
In addition, the said amount will be suitably adjusted at the time of restructuring.
c. Liquidity Risk
Liquidity risk is the risk arising from the Company not being able to meet its obligation. The
Company manages its liquidity needs by carefully monitoring the payment schedule for short-term
and long-term financial liabilities as well as forecast cash inflows and outflows due in day to day
business.
137


c.
Liquidity Risk (Continued)

The entity uses maturity analysis to manage the liquidity, e.g., when the counterparty has a choice
of when an amount is paid, the liability is included on the basis of the earliest date on which it can
be required to pay. The risk that the Company will be unable to do is inherent in the Companys
operational and can be affected by a range of institution-specific and market-wide events as the
long-term secured debts of the Company are still unrestructured.
In the normal course, the Company manages its liquidity needs by carefully monitoring scheduled
debt servicing payments for current and long-term financial liabilities as well as other cash
outflows on a day-to-day business. Liquidity needs are monitored in various time bands, on a dayto-day and week-to-week basis, as well as on the basis of a rolling 90-day projection.
The current financial dues including the bank loans for the procurement of raw materials, of the
Company are fully covered by the current assets of the Company which can be converted into cash
within a short period. The other long-term loans have fixed interest servicing and repayment
schedule, which are fully budgeted in the 3 monthly cash flow estimates. The Company does not
have any over due liability either short-term or long-term, except for secured debts that is still
under the restructuring process
As of December 31, 2012 and 2011, the Companys financial liabilities have contractual which are
presented below.
Current
Within
6 months
US$
December 31, 2012 :
Trade payables
Accrued expenses
Bank Loans
Secured Debts
Working Capital Loans
Unsecured Debts and
Notes payable
Other short-term
Total
22,949,484
43,319,170
78,752,462
1,000,263,703
35,988
4,150,965
1,149,471,772
138
6 to 12
months
US$
17,340,000
28,663
17,368,663
Non Current
1 to 5
More than
Years
5 years
US$
US$
8,867,735
55,535
8,923,270
13,301,603
13,301,603


c.
Liquidity Risk (Continued)

Current
Within
6 months
US$
December 31, 2011 :
Trade payables
Accrued expenses
Bank Loans
Secured Debts
Working Capital Loans
Unsecured Debts and
Notes payable
Other short-term
Total
23,798,883
45,606,299
70,339,624
1,012,928,220
29,379
4,251,161
1,156,953,566
Non Current
1 to 5
More than
Years
5 years
US$
US$
6 to 12
months
US$
8,500,000
14,500,000
27,656
4,937,627
48,524
17,007,384
8,527,656
19,486,151
17,007,384
54. CAPITAL MANAGEMENT POLICIES

The Companys objective when managing capital is to safeguard the Companys ability to continue as
a going concern in order to provide returns for shareholders and benefits for other stakeholders and to
maintain an optimal capital structure to reduce the cost of capital.
The Company regularly reviews and manages its capital structure to ensure optimal capital structure
and shareholder return. In order to maintain the optimal capital structure, the Company may adjust the
amount of dividends paid to shareholders.
Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio.
The gearing ratio as of December 31, 2012 and 2011 are as follows :
Total borrowings
Less :
2012
US$
2011
US$
1,118,645,689
1,128,318,414
(9,773,413)
(827,301)
(1,113,711)
1,106,931,264
Net debt (carried forward)
139
(3,417,588 )
(330,834 )
(1,140,893 )
1,123,429,099

54. CAPITAL MANAGEMENT POLICIES (Continued)
Net debt (brought forward)

Total deficiency
2012
US$
2011
US$
1,106,931,264
1,123,429,099
(797,838,849 )
(766,263,067 )
(0.72 )
(0.68 )
Gearing ratio
The total borrowings include the unrestructured secured debts of US$ 1,000,263,703. The Company
endevours to restructure this debt to a sustainable level and for which the negotiations are underway
with its secured creditors including PPA/BPP. If the proposal of the Company which includes debt to
equity swap and waiver of the past interest amounts is accepted by its creditors, it will considerably
improve the capital gearing structure of the Company.
55. RESTATMENTS OF THE PRIOR YEARS FINANCIAL STATEMENTS

The management makes adjustments to correct the followings :
a. The understated of carrying amont of land in Bandung amounted to US$ 68,347
b. The understated of acquisition cost and its accumulated depreciation of building in Bandung
amounted to US$ 96,441, respectively. The carrying amount of its building is US$ Nil.
According to PSAK No. 25, the total amount of correction of errors amounted to US$ 68,347 that
related to prior period should be reported by adjusting the opening balance of unappropriate retained
ernings (accumulated deficit) and as part of the equity attributable to the owners of the Company.
The summary of the restatement of accounts are as follows :
As previously
Reported
US$
Property, plant and equipments :
As of January 1, 2011
As of December 31, 2011
Accumulated deficit unappropriated :
As of January 1, 2011
As of December 31, 2011
304,392,472
184,768,776
(2,019,193,395)
(2,028,146,170)
140
As Restated
US$
304,460,819
184,837,123
(2,019,125,048)
(2,028,077,823)

56. ACCOUNT RECLASSIFICATIONS

Certain accounts in the consolidated financial statements for the years ended December 31, 2011 and
2010 have been reclassified to conform with the presentation of the consolidated financial statements
for the year ended December 31, 2012 which are in accordance with the Capital Market and Financial
Institution Supervisory Agency (BAPEPAM-LK)s Regulation No. VIII.G.7, enclosed in the decision
letter No. KEP-347/BL/2012. The details of the significant accounts being reclassified are as follows :
Descriptions
Consolidated statement of financial

position as of December 31, 2011 :
Other current financial liabilities
Consolidated statement of comprehensive
income for the year ended
December 31, 2011 :
Interest income
Interest expense and bank charges
Finance costs
Consolidated statement of financial
position as of December 31, 2010 :
Liabilities for purchase of property,
plant and equipment
Other current financial liabilities
Finance Lease Liabilities
Before
Reclassification
US$
Reclassification
US$
After
Reclassification
US$
330,834
5,736,511
1,140,893
4,251,161
(330,834)
(5,736,511)
6,067,345
(1,140,893)
1,140,893
(4,251,161)
4,251,161
6,067,345
1,140,893
4,251,161
21,064
(16,336,405)
(21,064)
16,336,405
(16,315,341)
(16,315,341)
111,222
2,944,403
1,905,194
(111,222)
(2,944,403)
3,055,625
(1,905,194)
1,905,194
3,055,625
1,905,194
30,476
17,313,465
4,300,981
(30,476)
(17,313,465)
17,343,941
(4,300,981)
4,300,981
17,343,941
4,300,981
57. PRONOUNCEMENT OF NEW ACCOUNTING STANDARDS

The Indonesian Institute of Accountants (IIA) has issued new or revision of the following the
Indonesian Financial Accounting Standards (PSAK) and its interpretation (ISAK). The accounting
standards which will be effective or applicable on the Company financial statements covering periods
beginning on or after January 1, 2013 :
141

57. PRONOUNCEMENT OF NEW ACCOUNTING STANDARDS (Continued)

PSAK 38
ISAK 21
Business Combinations on Entities under Common Control

Agreements for the Constructions of Real Estate
The Company and its Subsidiaries managements are currently evaluating the possible impact on these
new accounting standards and interpretations on its consolidated financial statements.
58. SUPPLEMENTARY FINANCIAL INFORMATION

The Company published consolidated financial statements. The supplementary financial information
of PT Asia Pacific Fibers Tbk (Parent Company only) in schedule 1 until schedule 6 that has been
prepared in order to analyse parent Company onlys result of operations. The following supplementary
financial information of PT Asia Pacific Fibers Tbk (Parent Company only) should be read in
conjuction with the consolidated financial statements of PT Asia Pacific Fibers Tbk and its
Subsidiaries.
142
Schedule -1
SUPPLEMENTARY FINANCIAL INFORMATION
(PARENT COMPANY ONLY)
STATEMENTS OF FINANCIAL POSITION
December 31,
2012
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$
ASSETS
CURRENT ASSETS
Trade receivables, net after allowance for
impairment of US$ 15,657,945 in 2012
and 2011 and US$ Nil in 2010
Third parties
Related parties
Other receivables, net after allowance for
Impairment of US$ 36,721,575 in 2012
and 2011 and US$ 36,752,074 in 2010
Third parties
Inventories
Purchase advances
Prepaid taxes
Prepaid expenses
9,773,413
3,417,588
9,715,956
57,988,028
27,789,291
50,095,415
29,634,147
46,948,271
45,679,979
3,300,907
7,720,808
79,954,633
34,605,192
14,786,048
1,101,627
2,529,473
6,067,345
87,677,359
37,846,870
13,202,393
1,169,786
457,727
3,055,625
50,974,455
32,329,293
13,891,922
850,592
237,019,947
231,640,376
203,903,820
NONCURRENT ASSETS
Non-trade receivables from related parties,
net after allowance for impairment of
US$ 111,997,893 in 2012 and 2011
and US$ 5,587,181 in 2010
after accumulated depreciation of
US$ 1,658,522,816 in 2012,
US$ 1,588,852,556 in 2011, and
US$ 1,502,626,495 in 2010
Intangible assets
Investment in subsidiaries
Deferred tax assets
35,139,585
1,113,711
37,661,889
1,140,893
144,781,701
1,144,632
129,394,646
12,750
31,170
3,216,621
184,837,123
31,170
262,057,203
16,175,401
168,908,483
223,671,075
424,158,937
TOTAL ASSETS
405,928,430
455,311,451
628,062,757
Schedule -2
STATEMENTS OF FINANCIAL POSITION (Continued)
December 31,
2012
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$

(DEFICIENCY)
CURRENT LIABILITIES
Trade payables
Third parties
Related party
Accrued expenses
Taxes payable
Bank Loans
Secured Debts
Current portion of long-term liabilities:
Other short-term financial liabilities
22,942,334
7,150
43,319,170
1,751,095
78,752,462
1,000,263,703
23,798,883
45,606,299
1,937,308
70,339,624
1,012,928,220
19,845,244
135,538
54,650,270
2,039,546
48,046,644
1,012,905,635
17,340,000
64,651
4,076,034
8,500,000
57,035
4,176,230
4,333,000
52,884
4,813,702
1,168,516,599
1,167,343,599
1,146,822,463
Borrowing from Other Financial
Institutions :
22,169,338
55,535
10,274,737
21,945,011
14,500,000
48,524
8,561,749
6,424,565
21,077,129
36,277,862
77,437
6,504,083
17,400,285
32,499,610
51,479,849
81,336,796
Schedule -3
STATEMENTS OF FINANCIAL POSITION (Continued)
December 31,
2012
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$

(DEFICIENCY)
EQUITY (DEFICIENCY)
Share Capital
Authorized 12,357,255,040 shares
at Rp 10,000 par value per Series A,
Rp 1,000 par value per Series B and
Rp 40 par value per Series C
in 2012, 2011 and 2010
Issued and paid up 219,696,000
Series A and 2,276,057,347 Series C
in 2012 and 2,157,211,950 Series C
in 2011 and 2010
Retained earnings (accumulated deficit)
Appropriated
Unappropriated
635,689,316
624,344,507
635,165,191
624,325,603
635,165,191
624,325,603
2,345,301
(2,057,466,903)
2,345,301
(2,025,348,092)
2,345,301
(1,861,932,597)
Total deficiency attributable to

the owners of the Company
(795,087,779)
(763,511,997)
(600,096,502)

EQUITY (DEFICIENCY)
405,928,430
455,311,451
628,062,757
Schedule -4
STATEMENTS OF COMPREHENSIVE INCOME
2012
2011
(As Restated)
US$
US$
Continuing operation :
REVENUES
Net sales
Total revenues
COST OF GOODS SOLD
GROSS PROFIT (LOSS)
599,330,876
1,200,875
600,531,751
635,534,718
533,044
636,067,762
(606,514,179 )
(622,188,564 )
(5,982,428 )
13,879,198
(14,052,194 )
(17,843,646 )
1,667,691
11,816,164
879,907
(13,725,399 )
(18,726,822 )
86,182
(2,158,190 )
(121,286,612 )
(17,532,078 )
(155,810,841 )
LOSS FROM OPERATIONS
(23,514,506 )
(141,931,643 )
Finance costs
(18,245,491 )
(16,315,341 )
(41,759,997 )
(158,246,984 )
9,641,186
10,975,720
9,641,186
10,975,720
(32,118,811 )
(147,271,264 )
Selling expenses
Gain (loss) on foreign exchange transactions, net
Miscellaneous income (expense), net

Current period
Deferred
Total tax income
TOTAL LOSS FOR THE YEAR
FROM CONTINUING OPERATIONS
Discountinued operations :
Loss on disposal of Subsidiary
TOTAL PROFIT (LOSS) FOR THE YEAR
OTHER COMPREHENSIVE INCOME, NET
AFTER TAX
Earning per share :
Basic
Diluted
(16,144,231 )
(32,118,811 )
(163,415,495 )
(32,118,811 )
(163,415,495 )
(0.01 )
(0.01 )
(0.07 )
(0.07 )
Schedule -5
STATEMENTS OF CHANGES IN EQUITY
Retained earnings
(accumulated deficit)
Additional
Share Capital paid-in capital Appropriated Unappropriated
US$
Balance as of January 1, 2011

(As Restated)
635,165,191
US$
624,325,603
US$
2,345,301

(As Restated)
635,165,191
624,325,603
Issuance of share capital
524,125
18,904
635,689,316
624,344,507
2,345,301
2,345,301
US$
Total equity
(deficiency)
US$
(1,861,932,597)
(600,096,502)
(163,415,495 )
(163,415,495 )
(2,025,348,092)
(32,118,811 )
(2,057,466,903)
(763,511,997)
543,029
(32,118,811 )
(795,087,779)
Schedule -6
STATEMENTS OF CASH FLOWS (Continued)
2012
US$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipt from customers
Payment to suppliers
Payment of salaries
Other operating cash payments, net
2011
US$
634,181,470
(107,539,191)
(16,579,363)
(61,251,557)
646,901,210
(121,707,320)
(15,571,185)
(38,847,286)
Cash provided by operations

Interest received
Interest expense and bank charges paid
Cash receipt from insurance claim settlement
Payment of income tax
Refund of income tax
448,811,359
31,754
(17,979,160)
1,667,691
(4,911,388)
5,940,924
470,775,419
21,064
(15,781,720)
86,182
(11,407,441)
7,119,722
Net Cash Provided By Operating Activities
433,561,180
450,813,226
CASH FLOWS FROM INVESTING ACTIVITIES

Payment to acquire property, plant and equipment
Increase of other current financial assets
Payment of non-trade receivables from related parties
(13,295,299)
(521,237)
(2,224,168)
(9,005,981)
(233,946)
(2,825,916)
Net Cash Used In Investing Activities
(16,040,704)
(12,065,843)
CASH FLOWS FROM FINANCING ACTIVITIES

Issuance of share capitals
Payment of bank loans
Receipt of working capital loans
Payment of working capital loans
Receipt of credit financing payables
Payment of credit financing payables
591,434
(404,619,673)
12,940,000
(18,600,000)
83,316
(68,689)
(428,449,261)
8,500,000
(26,110,862)
35,069
(59,831)
Net Cash Used In Financing Activities
(409,673,612)
(446,084,885)
NET INCREASE (DECREASE) IN CASH

AND CASH EQUIVALENTS
7,846,864
(7,337,502 )
(1,491,039)
1,039,134

AT BEGINNING OF YEAR
3,417,588
9,715,956

AT END OF YEAR
9,773,413
3,417,588
EFFECT OF FOREIGN EXCHANGE RATE

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Contents

Message from the President Commissioner

Management of the Company

Management Discussion and Analysis

Independent Auditor Report

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Annual Report 2012

Annual Report 2012

Annual Report 2012

Message from The President Commissioner

Dear Esteemed Shareholders,

Annual Report 2012

Robert Clive Appleby

Annual Report 2012

Polyester Industry: Global and Domestic Trends

Annual Report 2012

Management of the Company

Commissioners and Directors

Robert Clive Appleby

President Commissioner of APF since 2007. Director

Christopher Robert Botsford

Commissioner of APF since 2007. Chief Executive

Commissioner of APF since June 2008. He holds a

Dono Iskandar Djojosubroto

Commissioner of APF since February 2008. He holds a

Annual Report 2012

Previously he worked as the Secretary General of the

Commissioner of APF since 1990, Partner of Lubis

Commissioner of APF since 2012. She is a bachelor

Annual Report 2012

The Current members of the Board of Directors of APF are as follows:

President Director of APF since 2002. He is a graduate of

Masjhud Ali, MBA

Director of APF since 2002. Prior to joining APF, he was

Director of APF since 2002. He is a graduate in Electrical

Peter Vinzenz Merkle

Director of APF since 2007. He joined APF in 2000 as head of

Annual Report 2012

Annual Report 2012

An Overview of Polyester Industry

Annual Report 2012

3. Polyester Staple Fiber

4. Polyester Filament Yarn

Annual Report 2012

Annual Report 2012

Hypothecated Fixed Assets

Stock Price Performance

Restructuring Status & Financing Activities

Annual Report 2012

Annual Report 2012

Management Discussion and Analysis

Annual Report 2012

Annual Report 2012

Annual Report 2012

Public Offering in February 1991

Annual Report 2012

Total Structure listed on Indonesia Stock Exchange as of 31 December 2012

Annual Report 2012

Robert Clive Appleby

Vasudevan Ravi Shankar

Annual Report 2012

Annual Report 2012

Robert Clive Appleby