Eng - Indocement Tunggal Prakarsa, PT.

These consolidated financial statements are originally issued in Indonesian language.PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSYears Ended December 31, 2007 and 2006(Expressed in rupiah, unless otherwise stated)24. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES (continued)h. The Company has signed vessel charter agreements with Stillwater Shipping Corporation, Liberia,an associated company, for the charter of “M/V Tiga Roda” and “M/V Quantum One” vessels. OnJune 2, 2006 and September 5, 2006, the charter agreements for the “M/V Tiga Roda” and “M/VQuantum One” vessels were assigned by Stillwater Shipping Corporation to PT Bahana Indonor, anIndonesian company acquired by Stillwater Shipping Corporation in 2006. The charter agreementfor the “M/V Tiga Roda” vessel is valid until May 2010, while the charter agreement for the “M/VQuantum One” vessel is valid until September 2010 (Note 23).i. The Company and PT Multi Bangun Galaxy, a Subsidiary, have agreements with PT (Persero)Pelabuhan Indonesia for the lease of land for the cement terminals located at the Tanjung PriokPort, Tanjung Perak Port, and Lembar Port. The lease period will end in December 2012 for theTanjung Priok Port, in July 2012 for the Tanjung Perak Port, and in December 2021 for the LembarPort.j. On June 9, 2004, the Company entered into a “Prototype Carbon Fund Emission ReductionsPurchase Agreement” (Agreement) with the International Bank for Reconstruction andDevelopment, in its capacity as a trustee (“Trustee”) of the Prototype Carbon Fund (PCF). The PCFis a World Bank-administered fund representing six (6) governments and seventeen (17)companies.As stated in the Agreement, the Company agreed to undertake to carry out a project which isexpected to result in the reduction of greenhouse gas emissions (the Project). The Project iscomposed of two components as follows:• Introduction of new type of cement which contains a higher proportion of additive materials(Blended Cement Project)• Use of alternative fuels in clinker burning (Alternative Fuel Project).Subject to the terms and conditions of the Agreement, the Company shall generate a minimumnumber of Greenhouse Gases (GHG) Reductions from the Project and transfer the EmissionReductions (ERs) corresponding to these GHG Reductions to the Trustee with a total volume of3 million tons at the price as stipulated in the Agreement.The Project was agreed to commence in January 2005 and shall be terminated in 2011 or upon fulldelivery of the ERs to be generated by the Project.The Project should be implemented in a manner consistent with, or upon entry of, the KyotoProtocol in accordance with the applicable International UNFCCC/Kyoto Protocol Rules.The agreement has already been effective since the following conditions precedent had beenfulfilled:• Indonesia has ratified the Kyoto Protocol on July 28, 2004.• Receipt by the Trustee of a Letter of Approval for the Project on December 23, 2005, whichincludes authorization of the Company’s and the Trustee’s participation in the Project, and inthe reasonable opinion of the Trustee, meets all other requirements of approval under theInternational UNFCCC/Kyoto Protocol Rules.49