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Annual Report 2002 I 68
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The Efficiency Drive Program has succeeded in cutting the overall
cost of operations, investment, and supporting functions.
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INDEPENDENT AUDITORS’ REPORT

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BASIS OF THE ENGAGEMENT

AND
SCOPE OF AUDIT

Financial Report
BASIS OF THE ENGAGEMENT AND SCOPE OF AUDIT
1. Basis of the Engagement
a. The third amendment of the 1945 Constitution article 23 E, 23 F and 23 G;

b. Laws of the Republic of Indonesia No. 5 Year 1973, regarding the Audit Board and other existing laws
and regulations;
c. Engagement Letter of the Audit Board No.63/ST/VII-XV.1/12/2002 dated December 13, 2002, regard-
ing the engagement for the audit of PT Perusahaan Listrik Negara (Persero)’s financial statements for
the year 2002 at the Head Office and Regional Business Units.
2. Scope of Audit
This audit is a general audit of the consolidated financial statements of PT Perusahaan Listrik Negara
(Persero) for the year ended December 31, 2002. The audit is conducted in accordance with the Govern-
ment Auditing Standards issued by the Audit Board. This Standard requires that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstate-
ment.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the finan-
cial 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. In addition, an audit
also includes tests of the Company’s compliance with contracts, grants and certain provisions of laws and
regulations as well as compliance with internal controls.
Certain provision of laws and regulations which we tested, include :

a. Law No. 1 Year 1995 regarding Limited Liability Company
b. Government Regulation No. 12 year 1998 regarding Stated Owned Companies
c. Government Regulation No. 64 year 2001 regarding the Transfer of Position, Duty and Authority of the
Ministry of Finance in state owned limited liability company, Public Service Enterprise (Perum), Bureau
Company (Perjan) to the Ministry of State Owned Companies
d. Decree of the President of the Republic of Indonesia No. 133 Year 2001 dated December 31, 2001
regarding the Selling Price of Electricity Provided by State Owned Limited Liability Company (Persero)
PT Perusahaan Listrik Negara
e. Decree of the Ministry of Energy and Mineral Sources No.3032.K/46/MEM/2001 dated December 31,
2001 regarding the Implementation Rules of the Selling Price of Electricity Provided by PT PLN (Persero)
BPK - RI/AUDITAMA V
Financial Report
f. Decree of the Ministry of Energy and Mineral Sources No.2038.K/40/MEM/2001 dated August 24,
2001 regarding the Connection Expense of Electricity Provided by PT PLN (Persero)
g. PT PLN (Persero)’s Articles of Association
h. Decision of the Board of Director No.038.K/920/DIR/1998 dated June 3, 1998 regarding the procure-
ment of goods and services
i. Decision of PLN’s Board of Directors No.256.3.K/010/DIR/2001 dated December 31, 2001
j. Decision of the Board of Directors No.021.K/05999/DIR/1995 dated May 23, 1995 regarding the Guide-
lines and Instructions of Customer Administration
k. Decision of the Board of Directors of PT PLN (Persero) No.078.K/010/DIR/1999 dated April 20, 1999
regarding the Amendment/Completation of the Explanations of the Board of Directors Circular Letter
No.009.A.E/82/DIR/1994 regarding the Limitation of Operating Expense and Investment Cost
l. Decision of the Board of Directors of PT PLN (Persero) No.256-8.K/010/DIR/2001 dated December
31, 2001 regarding the Selling Price Regulation and Electricity Services Expense related to TDL
m. Board of Directors Circulars Letter No.010.E/012/DIR/2002 dated June 28, 2002 regarding the Flow of
Fund Receipts
n. Guidelines and Accounting Policy of PT PLN (Persero)
We did not audit the financial statements of PLN’s Subsidiaries, namely PT Indonesia Power, PT
Pembangkitan Jawa Bali, PT Indonesia Comnets Plus, and PT PLN Batam, which are wholly owned by the
Company, which statements reflect total assets amounting to Rp93,065,948.89 million and Rp27,618,231.31
million as of December 31, 2002 and 2001, respectively, and total income amounting to Rp1,496,074.41
million and Rp638,407.92 million for the years then ended, respectively. The financial statements of these
Subsidiaries were audited by other independent auditors whose reports which expressed unqualified opinion
have been furnished to us and our opinion, insofar as it relates to the amounts included for these Subsidiar-
ies, is based solely on the reports of the other independent auditors.
We believed that our audit provides a reasonable basis for our opinion. The audit fieldwork was conducted
starting from November 11, 2002 up to March 31, 2003.
THE AUDIT BOARD OF

THE REPUBLIC OF INDONESIA
BPK - RI/AUDITAMA V

Financial Report
FINANCIAL STATEMENTS
Financial Report
PT PERUSAHAAN LISTRIK NEGARA (PERSERO) AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Rupiah)
Notes December 31, 2002 December 31, 2001

ASSETS
NON-CURRENT ASSETS
Property, plant and equipment

Carrying value 2e, 3, 34 201,318,266,900,547 71,199,098,692,321
Accumulated depreciation (15,700,329,132,406) (18,150,768,918,803)
Net book value 185,617,937,768,141 53,048,329,773,518
Assets not used in operations 2f, 5 4,360,877,837,263 2,338,753,654,625
Construction in progress 2g, 4 9,587,301,107,735 12,340,034,835,533
Investment in shares of stock 2i, 6 289,885,727,553 32,774,557,224
Deferred tax assets - net 15 10,190,872,725 20,810,898,410
Other assets
Non-operational assets 2h, 7 494,305,845,507 235,915,348,361
Deferred charges - net 2l, 9 402,267,576,242 328,644,214,050
Other receivables 8 169,747,189,320 141,202,768,154
Prepaid expenses and advance payments 10 45,105,960,039 38,297,293,970
Claims for tax refund 15 27,676,382,853 18,591,874,586
Total other assets 1,139,102,953,961 762,651,499,121
Total non-current assets 201,005,296,267,378 68,543,355,218,431
CURRENT ASSETS
Cash and cash equivalents 2n, 11 7,218,517,205,010 6,142,460,790,375
Temporary investments 12 641,463,304,515 684,669,245,639
Accounts receivable
Trade – net of allowance for doubtfull
accounts of Rp 70,610,667,961
in 2002 and Rp 79,914,150,481 in 2001 2m, 13 2,053,296,077,372 2,893,599,572,582
Others 8 456,113,004,034 89,740,647,814
Inventories 2k, 14 2,104,458,838,627 1,394,161,798,338
Prepaid taxes 15 2,012,401,825 802,159,289
Prepaid expenses and advance payments 10 417,446,570,867 157,727,746,029
Total current assets 12,893,307,402,250 11,363,161,960,066
TOTALASSETS 213,898,603,669,628 79,906,517,178,497

Financial Report

CONSOLIDATED BALANCE SHEETS (continued)
(In Rupiah)

STOCKHOLDERS’EQUITYAND LIABILITIES
STOCKHOLDERS’ EQUITY
Capital stock - Rp 1,000,000 nominal value per share
Authorized - 63,000,000 shares
Subscribed and fully paid - 46,107,154 shares in 2002
and 46,107,154 shares in 2001 16a 46,107,154,000,000 46,107,154,000,000
Other capital 16b 18,917,340,432,152 17,571,443,391,657
Revaluation increment in property, plant and equipment 16b 137,599,980,268,685 -
Retained earnings (deficit)

Appropriated 1,894,148,569,355 1,894,148,569,355
Unappropriated (52,434,302,877,397) (46,374,744,670,626)
Total stockholders’ equity - net 152,084,320,392,795 19,198,001,290,386
MINORITY INTEREST IN NETASSETS -

OF CONSOLIDATED SUBSIDIARIES 3,909,507,599 -
DEFFERED INCOME - NET 2r, 17 3,998,868,453,251 3,502,133,701,213
NON-CURRENT LIABILITIES
Deferred tax liabilities - net 15 776,740,773,943 3,020,649,688,460

Long-term debts - net of current maturities
Two-step loans 2q, 20a 16,763,996,027,692 20,146,895,425,575
Government loans 21 5,326,456,446,377 5,742,525,455,507
Bank loans 18 140,319,552,645 210,308,777,000
Bonds payable 19 600,000,000,000 600,000,000,000
Due to independent power producers 22 7,149,588,377,537 -
Total long-term debts 29,980,360,404,251 26,699,729,658,082
Other payables 23 9,023,016,401,451 104,202,414,573
Customers’ security deposits 24 2,633,024,822,467 2,363,026,311,746
Projects payable 25 551,572,274,747 748,610,998,175
Total non-current liabilities 42,964,714,676,859 32,936,219,071,036

Financial Report

CONSOLIDATED BALANCE SHEETS (continued)
(In Rupiah)
CURRENT LIABILITIES
Accounts payable
Trade 26 9,554,282,075,852 19,930,391,663,127
Others 23 403,199,873,622 306,505,267,288
Taxes payable 15 1,038,689,238,672 108,987,000,193
Accrued expenses 27 854,297,514,521 951,619,666,744
Current maturities of long-term debts
Two-step loans 2q, 20b 2,509,633,306,450 2,463,201,798,509
Government loans 21 416,650,631,986 439,766,497,001
Bank loans 18 70,037,998,021 69,691,223,000
Bonds payable 19 - -
Total current liabilities 14,846,790,639,124 24,270,163,115,862
TOTAL STOCKHOLDERS’ EQUITY AND LIABILITIES 213,898,603,669,628 79,906,517,178,497
See accompanying Notes to the Consolidated Financial Statements which are an integral part of the consolidated financial statements.

Financial Report

CONSOLIDATED STATEMENTS OF INCOME
(In Rupiah)
For The Years Ended

OPERATINGREVENUES
Electric power sales 2o, 28 39,018,461,721,493 28,275,982,649,678
Connection fees 2o, 29 302,307,820,340 265,857,730,605
Electricity subsidy 2p, 30 4,739,073,653,216 6,735,209,866,886
Others 31 123,510,049,750 82,907,269,363
Total operating revenues 44,183,353,244,799 35,359,957,516,532
OPERATING EXPENSES
Fuel 2o, 32 17,957,261,628,798 14,007,295,529,403
Electric power purchases 33 11,168,842,948,716 8,717,140,537,841
Depreciation of property, plant and equipment 2e, 34 15,626,762,571,070 3,404,113,925,841
Maintenance 35 3,588,827,620,484 2,630,359,602,830
Personnel 36 2,583,289,595,495 2,086,329,980,623
Others 37 1,420,607,273,725 1,094,147,262,141
Total operating expenses 52,345,591,638,288 31,939,386,838,679
LOSS FROM OPERATIONS (8,162,238,393,489) 3,420,570,677,853
OTHER INCOME (CHARGES)

Interest income - 665,414,275,826 363,856,350,535
Interest and financing charges 39 (2,152,231,840,512) (2,619,507,159,806)
Gain on foreign exchange - net 40 2,725,596,125,676 (458,948,280,287)
Others - net 345,645,823,538 (139,826,909,462)
Other income (charges) - net 1,584,424,384,528 (2,854,425,999,020)
INCOME (LOSS) BEFORE TAX (6,577,814,008,961) 566,144,678,833
TAX EXPENSES 2s, 15

Current (5,853,854,766) (3,222,665,833)
Deferred (1,808,931,417,764) (566,197,243,723)
Total tax expenses (1,814,785,272,530) (569,419,909,556)
LOSS BEFORE EXTRAORDINARY INCOME (8,392,599,281,491) (3,275,230,723)
EXTRAORDINARY INCOME (LOSS) 41 2,333,041,074,720 183,393,988,135

NET INCOME (LOSS) (6,059,558,206,771) 180,118,757,412
NET INCOME (LOSS) PER SHARE (131,423) 7,967
See accompanying Notes to the Consolidated Financial Statements which are an integral part of the consolidated financial statements,
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(In Rupiah)
For The Years Ended December 31, 2002 and 2001
Retained Earnings (Deficit)
Subscribed and Other Stockholders’
Notes Fully Paid Capital Appropriated Unappropriated Equity -
Capital Stock Net
Balance, January 1, 2001 17,325,800,000,000 45,960,017,746,172 1,894,148,569,355 (46,554,863,428,038) 18,625,102,887,489

Reclassifications from Other Capital 28,781,354,000,000 (28,781,354,000,000) 0 0 0
Other capital 0 392,779,645,485 0 0 392,779,645,485
Net Income 0 0 0 180,118,757,412 180,118,757,412
Balance, December 31, 2001 46,107,154,000,000 17,571,443,391,657 1,894,148,569,355 (46,374,744,670,626) 19,198,001,290,386
Other capital 12 0 1,345,897,040,495 0 0 1,345,897,040,495
Revaluation increment in property,
plant and equipment 3, 16b 0 137,599,980,268,685 0 0 137,599,980,268,685
Net loss 0 0 0 (6,059,558,206,771) (6,059,558,206,771)
Balance, December 31, 2002 46,107,154,000,000 156,517,320,700,837 1,894,148,569,355 (52,434,302,877,397) 152,084,320,392,795

Financial Report
See accompanying Notes to the Consolidated Financial Statements which are an integral part of the consolidated financial statements.
Financial Report

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Rupiah)
For The Years Ended

CASH FLOWS FROM OPERATINGACTIVITIES
Cash receipts from customers 41,155,376,332,501 28,996,958,218,591

Cash receipts for interest income and current accounts 664,089,964,992 374,133,047,948
Cash payments to suppliers and employees (34,868,772,165,881) (24,792,031,301,828)
Cash payments for other operating expenses (1,296,638,631,996) (1,471,103,326,246)
Cash received from Government subsidy 4,404,896,667,583 6,735,209,866,886
Cash receipts from operations 10,058,952,167,199 9,843,166,505,351
Payments for
Interest and finance charges (2,134,652,750,479) (2,603,288,784,955)
Taxes (1,318,245,048,691) (15,654,629,534)
Cash receipts for taxes (13,991,461,947) 3,639,642,868
Net Cash Provided by Operating Activities 6,592,062,906,082 7,227,862,733,730
CASH FLOWS FROM INVESTINGACTIVITIES
Cash receipts from sale of property, plant and equipment 30,955,050,441 15,686,193,806
Cash payments for acquisition of property, plant and equipment (2,517,779,753,367) (1,404,205,353,343)
Cash payments for investment in shares of stock (257,111,170,329) (6,617,783,096)
Net Cash Used in Investing Activities (2,743,935,873,255) (1,395,136,942,633)
CASH FLOWS FROM FINANCINGACTIVITIES
Cash payments for two-step loans (2,262,793,294,713) (2,578,618,537,319)

Cash payments for bonds payable (1,000,000,000,000)
Cash payments for Government loans (236,800,487,145) (691,838,669,233)
Cash payments for bank loans (70,092,449,334) (65,250,000,000)
Cash payments for dividends (202,384,387,000)
Net Cash Provided by (Used in) Financing Activities (2,772,070,618,192) (4,335,707,206,552)
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,076,056,414,635 1,497,018,584,545
CASHAND CASH EQUIVALENTSAT BEGINNING OF YEAR 6,142,460,790,375 4,645,442,205,830
CASH AND CASH EQUIVALENTS AT END OF YEAR 7,218,517,205,010 6,142,460,790,375
See accompanying Notes to the Consolidated Financial Statements which are an integral part of the consolidated financial statements,
Financial Report
PT PLN (PERSERO) AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2002 and 2001
(In Rupiah)
1. GENERAL
The Company’s Establishment and Other General Information

Perusahaan Umum Listrik Negara was established in 1961 when the Government of the Republic of
Indonesia took over the Dutch’s electricity companies, among others: NV OGEM, NV ANIEM, NV GEBEO
and other electricity companies.
Previously, Perusahaan Umum Listrik Negara is one of the units of the Ministry of Energy and Public
Works. Based on the Government Regulation No. 19 year 1965, the status of Perusahaan Listrik Negara
was changed to that of a legal entity after some of the Regional Electricity Companies were granted to
Perusahaan Listrik Negara.
In 1970, Perusahaan Listrik Negara was converted into a public service enterprise (Perum), based on the
Government Regulation No. 30 year 1970. Furthermore, the status and function of Perusahaan Umum
Listrik Negara was amended by the Government Regulation No. 18 year 1972.
Based on the Presidential Decree No. 59/M year 1978, Perusahaan Umum Listrik Negara was put under
the supervision of the Department of Mineral and Energy.
Based on the Notarial Deed No. 169 of Sutjipto, S.H., Notary in Jakarta, dated July 30, 1994, the Limited
Company was established under the name PT Perusahaan Listrik Negara (Persero), shorthened to PT
PLN (Persero).
The deed of establishment has been approved by the Ministry of Justice in its Decision Letter No. C-2-
11.519 HT.01.04.Th.94 dated August 1, 1994. Based on PT PLN (Persero)’s Articles of Association, the
purpose and objective of PLN is to engage in the business of providing electricity for the benefit of the
public and gain profit based on the Company’s management principles.
On October 3, 1995, PT PLN (Persero) established PT PLN Pembangkitan Tenaga Listrik Jawa Bali I
(PT PLN PJB I) which subsequently changed its name to PT Indonesia Power, located in Jakarta, and
PT PLN Pembangkitan Tenaga Listrik Jawa Bali II (PT PLN PJB II), which subsequently changed its
name to PT PJB, located in Surabaya. Both of the subsidiaries are enggaged in electric power generation.
On October 3, 1995, PT PLN (Persero) established PT Perusahaan Listrik Nasional-Batam (PT PLN -
Batam), which is located in Batam Island and engages in providing the public electricity in Batam Island,
Rampang Island, Galang Island and the surrounding areas. Moreover, PT Indonesia Comnets Plus, which is
located in Jakarta and engages in the telecommunication business for the electricity sector and public
benefit utility, was also established.

Financial Report

(In Rupiah)
The Board of Directors and Commissioners
Year 2002
Board of Commissioners:
Based on the Decision Letter of the Ministry of State-Owned Companies No. KEP-99/M-MBU/2002 dated
May 30, 2002, the composition of the board of commissioners of PLN are as follows:
President Commissioner : Luluk Sumiarsono
Commissioners : Yogo Pratomo
Komara Djaja
Andung Nitimiharja
Mohammad Ikhsan
Directors:
President Director : Eddie Widiono Suwondho
Director of Planning : Hardiv Situmeang
Director of Marketing and Distribution : Tunggono
Director of Operations : Bambang Hermiyanto Priyadi
Director of Finance : F. Parno Isworo
Director of Human Resources and Organization : Azwani Sjech Umar
Year 2003
Based on the Decision Letter of the Ministry of State-Owned Companies No. KEP-180/M-MBU/2003 dated
March 6, 2003, regarding the termination and appointment of the Company’s board of directors, the composition
of the board of directors of PLN is as follows:
President Director : Eddie Widiono Suwondho
Director of Power Plant and Prime Energy : Ali Herman Ibrahim
Director of Business and Customer Services : Sunggu Anwar Aritonang
Director of Transmission and Distribution : Herman Darnel
Director of Finance : F. Parno Isworo
Director of Human Resources and Organization : Djuanda Nugraha Ibrahim
2. SUMMARY OF ACCOUNTING POLICIES
The summary of the Company’s accounting policies are as follows:
a. Financial Statements
The financial statements have been prepared in accordance with the generally accepted accounting
principles and practices in Indonesia using the historical cost basis, and the amounts in the financial
statements have been rounded off and stated in full Rupiah amounts.
Financial Report

(In Rupiah)
The financial statements have been prepared consistently with previous years and represent combined
balance sheets and statements of income accounts of the Company and Subsidiaries as one business entity.
The consolidated statements of cash flows were prepared based on the direct method by classifying cash
flows into operating, investing and financing activities.
b. Principles of Consolidation
The consolidated financial statements include the accounts of the Company and Subsidiaries, which the
Company directly or indirectly control through ownership of more than 50% voting rights.
Intercompany balances and transactions between the Company and Subsidiaries have been eliminated to
reflect the financial position as well as the results of operations of the Company and its Subsidiaries as one
business entity.
c. Transactions with Related Parties
In accordance with Statement of Financial Accounting Standards (PSAK) No. 7, related party relationships
are described as follows:
(1) enterprises that, through one or more intermediaries, control, or are controlled by, or are under common
control with, the reporting enterprise (this includes holding companies, subsidiaries and fellow subsidiaries);
(2) associated companies;
(3) individuals owning, directly or indirectly, an interest in the voting rights of the reporting enterprise that
gives them significant influence over the enterprise, and close members of the family of any such indi-
vidual (close members of the family of an individual are those that may be expected to influence, or be
influenced by, that person in their dealings with the reporting enterprise);
(4) key management personnel, that is, those persons having authority and responsibility for planning, direct-
ing and controlling the activities of the reporting enterprise, including board of commissioners, directors
and managers of companies and close members of the families of such individuals; and,
(5) enterprises in which a substantial interest in the voting rights is owned, directly or indirectly, by a person
described in (3) or (4), or over which such a person is able to exercise significant influence. This includes
enterprises owned by commissioners, directors or major shareholders of the reporting enterprise and
enterprises that have a member of key management in common with the reporting enterprise.

Financial Report

(In Rupiah)
The nature and amount of transactions with parties wherein the Company has control or with parties
wherein the Company has a special arrangements, or significant transactions, and also whether or not the
transactions are conducted under terms and conditions similar to those with third parties are disclosed in the
notes to financial statements. Transactions with state-owned enterprises and or regional-owned enterprises
are not disclosed as transactions with related parties (see Note 42).
d. Foreign Currency Transactions and Balances
The Company’s reporting currency used is Rupiah. Transactions involving foreign currencies are recorded
at the rates of exchange prevailing at the time the transactions are made. At balance sheet date, monetary
assets and liabilities denominated in foreign currencies are adjusted to reflect the selling rates for assets and
buying rates for liabilities published by Bank Indonesia. The resulting gains or losses are credited or charged
to current operations, except for foreign exchange differences incurred on loans obtained to finance the
acquisition and development of ongoing projects, which are capitalized as part of the cost of the related
projects.
e . Property, Plant, and Equipment
Property, plant, and equipment as of December 31, 2001 were revalued based on the Decision Letter of the
Ministry of State-Owned Companies No. S-819/M-MBU/2002 dated December 23, 2002 regarding the
Principal Approval of Revaluation of Property, Plant and Equipment and Decision Letter of the Ministry of
Finance of the Republic of Indonesia No. 486/KMK.03/2002 dated November 28, 2002 regarding the
Revaluation of the Company’s Property, Plant and Equipment for Taxation Purposes.
The purposes of the revaluation are to reflect the real value of the Company’s assets and match expenses
against revenues in the statements of income.
The revaluation of property, plant, and equipment as of January 1, 2002 was conducted by PT Sucofindo
Appraisal Utama, an independent appraiser registered in the Department of Finance.
The revaluation was conducted by using the market value or the revalued amount based on the new re-
placement cost after deducting with the accumulated depreciation since the assets were acquired until
revaluation was performed by, and considering the physical condition of those assets.
Property, plant and equipment of the Company and Subsidiaries are stated at cost or revalued amounts for
certain assets in accordance with the government regulation, less accumulated depreciation. Property, plant
and equipment include spare parts which are used to ensure the continuity and stability of the power plant
operations and electric installations in producing and distributing electricity. Spare parts are depreciated
based on the useful lives of the related property, plant and equipment.
Assets are retired or disposed if the physical condition/affectivity/economic considerations are no longer
beneficial or if there is a replacement. The carrying values of the assets retired and the related accumulated
depreciation are reclassified to assets not used in operations.
Financial Report

(In Rupiah)
Property, plant and equipment (except landrights which are not depreciated) are depreciated using the
straight-line method based on the estimated economic useful lives of the assets as follows:
Useful Lives
No Type (Years)
1 Buildings 10 – 25
2 Power plant installations 12.5 – 25
3 Transmission equipment 25
4 Distribution equipment 10 – 25
5 General equipment 5
6 Motor vehicles and mobile equipment 5
7 Spare parts 10 – 25
8 Other equipment 10
The revalued property, plant and equipment are depreciated based on fixed percentage of revalued amount
using the useful lives which have been determined by the independent appraiser.
f. Assets not Used in Operations
This account represents property, plant and equipment which are ready for their intended use but not yet
used in operations, because these assets are in the testing stage or these assets could not be used in
operations individually.
g. Construction in Progress
Construction in progress is stated at cost based on the percentage completed using the physical progress.
The accumulated costs will be reclassified to the appropriate property, plant and equipment account when
the assets are substantially completed and the assets are ready for their intended use.
Interest expense incurred on loans obtained to finance the acquisition of the assets and depreciation ex-
penses of property, plant and equipment that are used for development of assets are capitalized during their
constructions periods.
h. Non-Operational Assets
Property, plant and equipment which are temporarily not used due to technical/effectiveness/economic
conditions are classified as non-operational assets. Non-operational assets are not depreciated until they
are used again. If these assets will no longer be used, these will be classified as obsolete assets which will
be disposed and stated at the lower of cost or net realizable value. The resulting gains or losses from sale or
disposal of these assets are credited or charged to current operations.
Assets which reused are classified as property, plant and equipment and depreciated again.

Financial Report

(In Rupiah)
i. Investment in Shares of Stock
Investment in shares of stock wherein the Company has direct or indirect ownership interest of at least
20% but not exceeding 50% is stated at cost and adjusted for the Company’s share of the earnings or losses
of the associated company in proportion to the ownership interest and reduced by dividends received
(equity method).
Investment wherein the Company has an ownership interest off less than 20% is stated at cost.
If there is a permanent decline in the investment value, an allowance for impairment in value is provided.
j. Advances for Purchase of Gas
At the end of the year, the excess of amount paid to Pertamina when the actual gas usage is less than the
annual minimum gas purchase quantity as stated in the gas purchase agreements with Pertamina is re-
corded as advances for purchase of gas. At the end of year, the balance of this amount is evaluated and
adjusted to the actual gas used on the current year.
k. Inventories
Inventories are stated at cost using the moving average method. Obsolete inventories are removed from the
books based on its cost.
Allowance for decline in value due to damage/obsolescence is determined at 1% of the average gross amount
of the beginning and ending inventories.
l. Deferred Charges
Significant expenditures incurred with beneficial periods of more than one year are deferred and amortized
using the straight-line method over the estimated period benefited.
m. Allowance for Doubtful Accounts
To cover possible losses from uncollectible accounts receivable, the Company provides allowance for
doubtful accounts at 3% of the average balance of accounts receivable of public, state-owned compa-
nies, other receivables and doubtful receivables based on the Decision Letter of the Ministry of Finance
No. 1460/MK.04/1981 dated December 23, 1981.
n. Cash and Cash Equivalents
Cash on hand and in banks and short-term investments with original maturity period of three months or less
are classified as cash or cash equivalents.
Financial Report

(In Rupiah)
o. Revenue and Expense Recognition
Revenue from sale of electricity is recognized based on the billings for electricity usage (kWh) for the month.
Expenses are recognized when incurred (accrual basis).
p. Electricity Subsidy
Electricity subsidy is intended to cover some of the Company and Subsidiaries’ expenses and recognized as
income on the accrual basis.
q. Two-Step Loans
- Two-step loans are recognized based on the Withdrawal Authorization (WA) or other equivalent docu-
ments received by the Company from lenders.
- Two-step loans in Rupiah are recognized in Rupiah based on the exchange rates at the issuance of WA.
Payment to the Government of the Republic of Indonesia in Rupiah is based on the amount with drawn.
Two-step loans in foreign currencies are recognized in Rupiah based on the exchange rates at the
issuance of WA and adjusted at the reporting date. Payment to the Government of the Republic of
Indonesia in foreign currencies is based on the amount withdrawn.
r. Deferred Income
Connection fees received from customers are deferred and amortized at the rate of 5% per year. Fees
received from customers for connections not yet installed are not yet recorded as income.
s. Tax Expense
Tax expense is computed based on the estimated taxable income for the year. Deferred tax income or
expense is provided to reflect the tax effects of the temporary differences between financial reporting and
income tax purposes, and accumulated fiscal losses based on PSAK No. 46 regarding “Accounting for
Income Tax”.
t. Pension Plan
The pension plan available for all of the Company’s permanent employees is a defined benefit pension plan.
The Company’s contributions to the pension fund are charged to operations upon payment or when recog-
nized as payable.

Financial Report

(In Rupiah)
3. PROPERTY, PLANT AND EQUIPMENT
The details of property, plant and equipment as of December 31, 2002 after revaluation are as follows:
Year 2002
Reclassifications/
Balance Corrections of Balance
No. Description January 1, 2002 Additions Deductions Functions December 31, 2002
Cost
1 Land 6,939,776,910,000 45,232,492,722 5,959,724,800 (1,491,878,900) 6,977,557,799,021

2 Buildings 22,289,785,500,000 326,415,465,757 14,206,629,445 3,969,094,468 22,605,963,430,780
3 Power plant installations 80,084,568,632,000 1,477,756,322,823 34,009,609,452 (4,109,028,004) 81,524,206,317,367
4 Transmission equipment 34,275,574,318,000 1,399,192,943,178 79,131,344,378 5,071,577,881 35,600,707,494,681
5 Distribution equipment 50,649,042,954,000 1,019,049,531,634 63,089,922,885 (2,329,984,356) 51,602,672,578,392
6 General equipment 1,371,992,315,000 204,556,385,246 20,161,214,355 (17,505,881,826) 1,538,881,604,065
7 Vehicles 399,954,971,000 21,918,429,094 28,046,508,262 6,933,924,000 400,760,815,832
8 Spare parts 218,519,395,000 136,102,926,160 2,915,795,293 (95,506,007,985) 256,200,517,883
9 Others 723,474,031,000 90,113,710,264 1,893,333,333 (378,065,404) 811,316,342,527
Total Cost 196,952,689,026,000 4,720,338,206,877 249,414,082,203 (105,346,250,127) 201,318,266,900,547

Accumulated Depreciation
1 Land
2 Buildings - 1,603,370,381,079 3,366,815,172 1,029,801,674 1,601,033,367,581
3 Power plant installations - 6,825,706,557,231 5,645,720,288 690,322,207 6,820,751,159,150
4 Transmission equipment - 1,593,035,376,484 2,319,392,767 14,409,395,949 1,605,125,379,666
5 Distribution equipment - 4,613,744,543,695 6,857,268,284 278,714,927 4,607,165,990,338
6 General equipment - 562,828,762,637 16,768,801,575 4,429,093,889 550,489,054,951
7 Vehicle - 189,551,368,478 7,863,462,061 7,620,402,909 189,308,309,326
8 Spare parts - 72,142,009,398 100,977,263 (9,771,995,511) 62,269,036,624
9 Others - 267,676,688,727 1,189,438,903 (2,300,415,054) 264,186,834,770
Total Accumulated
Depreciation - 15,728,055,687,729 44,111,876,313 16,385,320,990 15,700,329,132,406
Net Book Value 196,952,689,026,000 (11,007,717,480,852) 205,302,205,890 (121,731,571,117) 185,617,937,768,141

Financial Report

(In Rupiah)
Year 2001
Reclassifications/
Balance Corrections of Balance
No. Description January 1, 2001 Additions Deductions Functions December 31, 2001
Cost
1 Land 937,465,116,493 137,651,334,631 682,246,680 (96,860,384,900) 977,593,819,544
2 Buildings 8,610,983,973,469 840,838,081,170 18,672,537,331 535,939,659,290 9,969,089,176,598
3 Power plant installations 28,460,924,558,669 866,482,194,184 32,412,631,305 (567,193,968,889) 28,727,800,152,659
4 Transmission equipment 11,814,355,414,627 922,516,802,952 52,542,802,793 182,377,215,330 12,866,706,630,116
5 Distribution equipment 14,584,258,735,642 936,017,008,084 15,348,727,879 53,820,949,083 15,558,747,964,930
7 Vehicles 193,045,465,493 26,050,971,497 1,525,295,556 13,562,754,017 231,133,895,451
8 Spare parts 278,117,538,422 20,880,065,962 8,739,083,330 (98,131,927,752) 192,126,593,302
9 Others 689,679,970,188 111,447,651,279 10,153,392,280 13,389,886,841 804,364,116,028
Total Cost 67,461,766,997,892 3,966,461,079,416 153,739,884,982 (75,389,500,005) 71,199,098,692,321
Accumulated Depreciation
1 Land
2 Buildings 1,624,933,757,972 411,541,799,425 4,570,745,783 (1,337,646,933) 2,030,567,164,681
3 Power plant installations 5,473,554,909,313 1,391,041,652,357 20,256,277,798 (5,209,120,085) 6,839,131,163,787
4 Transmission equipment 2,095,057,104,000 541,438,248,944 38,552,349,046 2,009,449,873 2,599,952,453,771
5 Distribution equipment 3,712,209,861,729 835,984,274,257 8,119,606,061 179,433,981 4,540,253,963,906
7 Vehicles 154,658,460,589 20,928,235,366 1,622,388,482 (287,062,826) 173,677,244,648
8 Spare parts 42,041,140,658 9,740,220,820 5,479,938,095 (3,366,717,131) 42,934,706,252
9 Others 335,053,530,959 70,164,726,532 9,496,873,060 (1,020,919,693) 394,700,464,739
Total Accumulated Depreciation 14,820,678,045,381 3,442,762,782,832 101,579,547,033 (11,092,362,377) 18,150,768,918,803
Net Book Value 52,641,088,952,511 523,698,296,584 52,160,337,949 (64,297,137,628) 53,048,329,773,518
The net book value of property, plant and equipment as of December 31, 2002, amounted to
Rp 185,617,937,768,141.00. The 2002 net book value increased as compared to the 2001 net book value which
is amounting to Rp 53,048,329,773,518.00. The increase is mainly due to the revaluation of property, plant and
equipment wherein the revaluation increment amounting to Rp 137,599,980,268,685.00 is presented as “Revalu-
ation Increment in Property, Plant and Equipment” under the stockholders’ equity section (see Note 16b).
Accumulated Depreciation of Property, Plant and Equipment

Due to the revaluation of property, plant and equipment as of January 1, 2002, the acquisition cost and
accumulated depreciation of the 2001 property, plant and equipment amounting to Rp 18,150,768,918,803.00
each, were written-off, while the accumulated depreciation as of December 31, 2002 amounting to
Rp 15,700,329,132,406.00 represents depreciation expense for the current year after the revaluation of
property, plant and equipment.

Financial Report

(In Rupiah)
The landrights which are used as collateral to PLN Bonds V series A, B, C year 1996 and VI series A, B,
C year 1997 are as follows:
- HGB No. 77, which is located in Kayu Putih, Jakarta
- HGB No. 670, which is located in East Kuningan, Jakarta
- HGB No. 1289, which is located in East Kuningan, Jakarta
- HGB No. 348, which is located in Kota Bambu, Jakarta
- HGB No. 1083, which is located in Kebayoran Baru, Jakarta
- Land, which is located in Gambir, Jakarta.
These collaterals are covered in the following agreements:
- The pari Pasu Security Sharing Agreement No. 101 dated May 17, 1996, by powers of attorney to
mortgage No. 103 -108 dated May 17, 1996, and Cessie Security Sharing Agreement No. 102 dated
May 17, 1996.
- The Pari Pasu Security Sharing Agreements No. 63 dated May 19, 1997, by powers of attorney to
mortgage No. 65 – 70 dated May 19, 1997 and Cessie Security Sharing Agreement No. 64 dated May
17, 1997.
4. CONSTRUCTION IN PROGRESS
Construction in progress consists of costs incurred in relation to the construction of electricity facilities and
infrastructure as follows:
December 31, 2002 December 31, 2001
Rp Rp
- Power plant 1,921,725,991,124 2,564,575,551,417
- Transmission 6,759,347,129,982 8,854,508,805,330
- Distribution 895,427,811,132 824,512,870,125
- Others 10,800,175,497 96,437,608,661
9,587,301,107,735 12,340,034,835,533
In this account included material PDP in relation to the construction of electricity Infrastructure as follows :

Rp Rp
- Power plant 5,994,585,999 16,806,743,466
- Transmission 581,422,600,381 672,817,714,246
- Distribution 518,424,725,734 579,680,793,692
- Others 122,695,132 476,140,132
1,105,964,607,246 1,269,781,391,536
Financial Report

(In Rupiah)
5. ASSETS NOT USED IN OPERATIONS

As of December 31, 2002 and 2001, assets not used in operations amounted to Rp 4,360,877,837,263.00 and
Rp 2,338,753,654,625.00, respectively. Assets not used in operations mainly consist of transmission equip-
ment.
6. INVESTMENTS IN SHARES OF STOCK

The Company has investment in shares of stock. The carrying value of these investments are as follows:

Rp Rp
- PT Geo Dipa Energi 248,556,374,039 -
- PT Prima Layanan Nasional Enjinering 3,725,000,000 -
- PT Indonusa Lappi 384,161,100 -
- PT Unelec Indonesia (Unindo) - -
- PT Bajradaya Sentranusa 19,598,822,090 18,441,355,034
- CBE Consorsium 13,821,510,324 13,983,342,190
- KSO KSPM 349,860,000 -
- PT Bukit Asam 3,450,000,000 -
- PT Mesa Inti Kebun - 349,860,000
289,885,727,553 32,774,557,224
Further explanations regarding the investments in shares of stock are as follows:

Activities Shares % Shares %
PT Geo Dipa Energi Electricity supplier 21,847,557 33.00 0 0

PT Prima Layanan
Enjinering Engineering & Contribution 3,725,000 99.33 0 0
PT Indonusa Lappi Electricity supplier Development stage
PT Unelec Indonesia
(Unindo) Electricity support 18,340 44.36 18,340 44.36
PT Bajradaya Sentranusa Electricity supplier 19,000 25.00 19,000 25.00
CBE Consorsium Electricity supplier 0 0 Development stage
PT Bukit Asam Coal Mining 6,000,000 1.00 - 0
PT Mesa Inti Kebun Plantation 72,275 49.00 - 0

Financial Report

(In Rupiah)
Investment in shares of stock at PT Geo Dipa Energi (GDE) amounting to Rp 248,556,374,039.00 consists
of cash payment amounting to Rp 218,475,570,000.00 and transfer of PLTP Dieng’s assets amounting to
Rp 30,080,804,039.00 which represents the revaluation of property, plant and equipment performed by
PT Sucofindo Appraisal Utama.
Investment in shares of stock at PT Unelec Indonesia (Unindo) amounting to Rp 14,980,248,632.00 is based

on the Government Regulation of the Republic Indonesia No. 2/1998 dated January 7, 1998. This invest-
ment is recorded using the equity method.
In 2001, the investment in shares of stock at Unindo was nil, because the Company’s accumulated equity in
net loss of Unindo exceeded the carrying value of its investment. In 2002, the retained earnings of Unindo
still has a negative balance.
Based on the Presidential Decree No. 47 year 1997 dated November 1, 1997 and No. 5 year 1998 dated
January 10, 1998, the project of PT Bajradaya Sentranusa was reviewed/postponed. This company is under
development stage.
Based on the Cooperation Agreement No. 010/MOU/CDB/2000 dated January 21, 2000. PT Cogindo
Daya Bersama (a subsidiary of PT Indonesia Power), Bukaka and Emitraco agreed to establish a Diesel
Power Plant (PLTD) in Batam. During the development stage, PT Cogindo has disbursed funds amounting
to Rp 13,821,510,324.00, which will be considered as paid-in capital in the company to be established.
7. NON-OPERATIONAL ASSETS
Rp Rp
- Cost 1,227,476,037,898 948,473,837,703

- Accumulated depreciation (733,170,192,391) (712,558,489,342)
494,305,845,507 235,915,348,361
Non-operational assets consist of assets which will be disposed, relocated and repaired, and PDP materials
which will be disposed.
These assets are not depreciated. The balance of accumulated depreciation represents the accumulated
depreciation prior to the reclassification to the non-operational assets account.
Financial Report

(In Rupiah)
8. OTHER RECEIVABLES

Rp Rp
Non-current portion
Third parties 557,887,868 640,485,934
Related parties
- Staff housing loans and others 169,189,301,452 140,562,282,220
169,747,189,320 141,202,768,154
Current portion
Third parties
- Stamp duty receivables - 10,221,000
- Interest receivables 3,671,977,146 1,122,945,760
- Others 33,684,920,155 1,703,282,429
37,356,897,301 2,836,449,189
Related parties
- Staff housing loans and others 418,756,106,733 84,313,539,386
- Interest receivables - 2,429,250,608
- Receivables from DP-PLN - 161,408,631
418,756,106,733 86,904,198,625
456,113,004,034 89,740,647,814
Dana Pensiun PT PLN (DP-PLN) has been approved by the Ministry of Finance of the Republic of
Indonesia in its Decision Letter No. KEP-284/KM-17/1997 dated May 15, 1997 and was published in the
State Gazette RI No. 52 dated July 1, 1997.
The funds come from the Company’s and employees’ contributions. For the years ended 2002 and 2001,
receivables from DP-PLN consist of:

Rp Rp
- Payable of the Company’s contributions - (838,640,563)

- Payable of the employee’s contributions (902,794,496) (3,044,815,830)
(902,794,496) (3,883,456,393)
- Receivable from payment of pension benefits - 4,044,865,024
(902,794,496) 161,408,631
The negative balance of receivables from DP-PLN amounting to Rp 902,794,496.00 is recorded as payable
to DP-PLN under account Other payables – Short – Term.

Financial Report

(In Rupiah)
9. DEFERRED CHARGES
This account represents deferred charges net of accumulated amortization as follows :

Rp Rp
Research 373,219,166,010 307,658,555,130
System, procedures and others 29,048,410,232 20,985,658,920
402,267,576,242 328,644,214,050
10. PREPAID EXPENSES AND ADVANCE PAYMENTS

Rp Rp
Non-current portions
Third parties
- Rent of land, building and others 35,751,623,085 5,674,343,870
Related parties
- Rent of land, building and others 9,354,336,954 32,622,950,100
45,105,960,039 38,297,293,970
Current portions
Third parties
- Advance for purchase of goods 196,743,732,802 8,185,921,527
- Advance for expenses and others 106,605,795,229 33,012,970,232
303,349,528,031 41,198,891,759
Related parties
- Advance for salaries 110,977,797,508 91,554,488,483
- Advance for expenses and others 3,119,245,328 24,974,365,787
114,097,042,836 116,528,854,270
417,446,570,867 157,727,746,029
Financial Report

(In Rupiah)
11. CASH AND CASH EQUIVALENTS

Rp Rp
Cash 82,587,491,934 49,299,343,275

Cash in banks
PT Bank Pembangunan Daerah 35,299,760,618 36,921,495,810
PT Bank Central Asia 152,791,347,747 196,710,572,839
PT Pan Indonesia Bank 16,611,377,732 17,136,396,160
PT Bank Bali 11,247,921,893 -
PT Bank Buana 16,440,920,305 29,792,903,668
PT Bank Artha Graha 29,506,424,362 23,686,309,221
PT Lippo Bank 5,750,304,764 4,335,578,113
PT Bank Bukopin 353,962,480,496 344,693,099,883
PT Bank International Indonesia 20,727,865,426 22,612,289,841
PT Bank Danamon (Inc,Ex Bank Duta Jaya Nusa etc) 100,674,574,201 8,075,034,894
PT Bank Muamalat/City Bank/PTBank IFI 10,232,708,559 4,212,184,080
PT Bank BNI’ 46 1,927,404,683,307 725,594,882,389
PT Bank BRI 2,666,071,636,530 582,826,313,641
PT Bank Mandiri 1,606,207,046,356 3,767,039,718,725
PT Bank BTN 22,617,601,276 21,900,219,442
PT Pos dan Giro 1,383,091,704 1,213,233,052
Total Cash in Banks 6,976,929,745,276 5,786,750,231,758
Time deposits with maturity periods of less than 3 months

PT Bank Internasional Indonesia - 6,000,000,000
PT Bank BUKOPIN 44,500,000,000 209,000,000,000
PT Bank Pembangunan Daerah 15,000,000,000 -
PT Bank Muamalat /City Bank/PT Bank IFI 10,000,000,000 22,000,000,000
PT Bank BNI’ 46 37,500,000,000 45,513,956,384
PT Bank Mandiri 36,999,967,800 23,855,258,958
PT Bank Indonesia - 42,000,000
PT Bank BRI 15,000,000,000 -
Total Time Deposits 158,999,967,800 306,411,215,342
Total Cash and Cash Equivalents 7,218,517,205,010 6,142,460,790,375
Time deposits denominated in Rupiah and foreign currencies with maturity periods of 3 months or less,
earned average annual interest rates as follows :
- in Rupiah currency 12.30% - 17.87%
- in Foreign currencies 2.50% - 4.59%
Cash and cash equivalents include balance in foreign currencies (see Note 43).

Financial Report

(In Rupiah)
Fund Reserve from Electricity Subsidy
Current accounts in Bank Mandiri, Melawai Branch and Bank BNI 46, Kebayoran, Jakarta Branch
include funds amounting to Rp 615,405,000,000.00 each or totaling Rp 1,230,810,000,000.00, which
represents reserve fund from electricity subsidy. This fund was requested by the Board of Director in
its Letter No. 07563/530/DITKEU/2002 dated December 19, 2002 and has been approved by the
Ministry of Finance in its Letter No. 1094/KM.3-43/SKOR/2002 dated December 27, 2002. This fund
was intended for the 2002 electricity subsidy fund, which in PLN’s calculations still has remaining balance
amounting to Rp 334,176,985,632.00, as follows:
- Subsidy requested from January to December 2002 Rp 3,206,066,985,632.00
- Subsidy received as of December 31, 2002 Rp 2,871,000,000,000.00
- Remaining balance of subsidy receivable as of December 31,2002 Rp 334,176,985,632.00
Up to the end of 2002, the subsidy fund amounting to Rp 1,230,810,000,000.00 is not included in the current
accounts presented in the financial statements.
12. TEMPORARY INVESTMENTS

Rp Rp
Time Deposits
- PT Bank BUKOPIN 25,000,000,000 -
- PT Bank Internasional Indonesia 12,682,000,000 10,000,000,000
- PT Bank Muamalat 10,500,000,000 -
- PT Bank Mandiri (Formerly Bank Exim) 104,837,000,000 69,656,300,000
- PT Bank Negara Indonesia 108,940,000,000 135,400,000,000
- PT Bank BRI 75,000,000,000 35,000,000,000
336,959,000,000 250,056,300,000
Notes receivable
- PT Bahana Pembinaan Usaha Indonesia 6,055,169,303 5,597,067,936
- PT Dana Reksa (Persero) 298,449,135,212 429,015,877,703
304,504,304,515 434,612,945,639
Total Temporary Investments 641,463,304,515 684,669,245,639
Temporary investments consist of notes receivable and time deposits in Rupiah and foreign currencies with
maturity periods of more than 3 (three) months and less than 1 (one) year and earned average annual
interest rates as follows:
- In Rupiah currency 12.30% - 17.87%
- In Foreign currencies 2.50% - 4.59%
- Notes receivable 16.54% - 18.41%
Temporary investments include balances in foreign currencies (see Note 43).

Financial Report

(In Rupiah)
13. ACCOUNTS RECEIVABLE
As of December 31, 2002, accounts receivable amounting to Rp 2,053,296,077,372.00 decreased as com-

pared to the balance as of December 31 amounting to Rp 2,893,599,572,582.00.

Rp Rp
Third parties 2,104,958,152,219 2,857,241,502,678

Related parties 18,948,593,114 116,272,220,385
2,123,906,745,333 2,973,513,723,063
Allowance for doubtful accounts (70,610,667,961) (79,914,150,481)
2,053,296,077,372 2,893,599,572,582
The changes in the allowance for doubtful accounts are as follows:

- Balance at beginning of year (79,914,150,481) (62,134,422,014)
- Additions during the year 7,682,913,872 (45,319,904,383)
- Accounts receivable written-off 1,620,568,648 27,540 ,175,916
(70,610,667,961) (79,914,150,481)
Based on the Agreement No. 99 dated May 17, 1996 and No. 63 dated May 19, 1997, between PT Bank
Mandiri (formerly BDN), the Trustee and PLN, the accounts receivable – trade are used as collateral to the
PLN Bonds V series A, B, C year 1996 and PLN Bonds VI series A, B, C year 1997. These receivables are
also used as collateral to loans obtained from several banks (see Notes 18 and 19).
14. INVENTORIES
Rp Rp
Fuel and lubricants 1,422,116,091,181 699,727,070,155
Transformers 22,101,230,855 20,975,833,142
Switchgear and transmission 37,213,905,102 35,556,731,712
Wire 30,704,767,519 30,196,128,079
Measurement, divider and control equipment 47,788,774,518 31,899,747,626
General supplies and others 562,327,920,662 587,456,069,958
2,122,252,689,837 1,405,811,580,672
Allowance for inventory obsolescence (17,793,851,210) (11,649,782,334)
2,104,458,838,627 1,394,161,798,338
The changes in the allowance for inventory obsolescence are as follows:

Beginning balance (11,649,782,334) (8,993,061,683)
Additions - (2,976,846,200)
Inventory written-off (6,144,068,876) 320,125,549
Ending balance (17,793,851,210) (11,649,782,334)

Financial Report

(In Rupiah)
As of December 31, 2002, inventories amounting to Rp 2,104,458,838,627.00 increased significantly as

compared to the balance as of December 31, 2001 which amounted to Rp 1,394,161,798,338.00. This is
caused by the increase in the price and volume of fuel and lubricants.
The increase in inventory volume is mainly caused by the decreasing supply of natural gas for power plants
in East Java which was replaced by fuel oil.
15. TAXATION

Rp Rp
a. Prepayment of Income Taxes
- Income tax article 22 22,500,422,309 9,955,973,813
- Income tax article 25 - 1,772,091,437
- Income tax article 21 - -
- Value - added tax - output 2,012,401,825 802,159,289
29,688,784,678 19,394,033,875
b. Taxes payable
- Value-added tax – input 28,137,517,392 78,205,548,624
- Stamp duty 194,267,727 4,232,099,937
- Tax on land and building - 228,472,308
- Tax on revaluation increment in property,
plant and equipment 927,917,087,208 -
1,038,689,238,672 108,987,000,193
c. Income Tax
Tax expenses of the Company and Subsidiaries consist of :
Current tax expense (5,853,854,766) 3,222,665,833
- Parent company - -
- Subsidiaries (5,853,854,766) 3,222,665,833
Deferred income tax (1,808,931,417,764) 566,197,243,723
- Parent company (1,178,074,766,727) 285,968,936,482
- Subsidiaries (630,856,651,037) 280,228,307,241
Financial Report

(In Rupiah)
CURRENT TAX EXPENSE
A reconciliation between loss before tax, as shown in the consolidated statements of income, and accumu-
lated fiscal loss is as follows:
Rp Rp
Loss before income tax per
consolidated statements of income (4,156,822,755,416) 750,480,243,626
Income before income tax of Subsidiaries (2,136,287,029,655) (945,682,426,296)
Loss before income tax of Company (6,293,109,785,071) (195,202,182,670)
Temporary differences
Amortization of electrical connection - -
fee 1977-1995
Income from electrical connection fee 485,412,566,145 253,718,282,997
Difference of depreciation between
commercial and fiscal (4,412,328,455,236) (973,215,732,116)
Amortization of loss on foreign exchange - (233,732,339,154)
(3,926,915,889,091) (953,229,788,273)
Permanent differences
Employees’ benefits 254,589,039,068 201,195,352,958
No-deductible expenses 343,272,773,348 260,015,508,680
Provision for doubtful accounts and
inventory obsolescence 343,699,844 60,155,523,868
Depreciation 7,200,718,052 5,081,630,765
Interest income on current accounts and
time deposits (588,593,030,332) (301,120,796,527)
Total 16,813,199,980 225,327,219,744
Fiscal loss current year (10,203,212,474,182) (923,104,751,199)
Last year correction from tax office - -
(10,203,212,474,182) (923,104,751,199)
Compensation of fiscal loss up to last year (50,654,367,130,750) (49,991,252,104,875)
Fiscal loss in 1995 not allowed
to be compensated 518,834,880,530 259,989,725,324
Accumulated fiscal loss up to last year (50,135,532,250,220) (49,731,262,379,551)
Fiscal loss compensation for asset revaluation

increment in property, plant and equipment (50,135,532,250,220) (49,731,262,379,551)
Accumulated fiscal loss to be compensated

Parent company (51,981,294,786,900) (50,654,367,130,750)
Subsidiaries (1,883,638,129,945) (1,326,927,656,150)
Consolidated (53,864,932,916,845) (51,981,294,786,900)

Financial Report

(In Rupiah)
Current and deferred taxes of Subsidiaries are in accordance with the Subsidiaries’ audited financial state-
ments for the years 2002 and 2001.
As of the auditors’ report date, the Tax Assessment Letter on Overpayment of Corporate Income Tax
(SKPLB) for the year 2001 has not yet been issued by the tax office, while for the year 2000 income
tax, the SKPLB No. 00117/406/051/2002 dated December 20, 2002 has been issued. The SKPLB
stated that the accumulated fiscal loss is Rp 25,546,119,492,621.00 lower than the Company’s calculation of
Rp 12,668,692,825,326.00. The overpayment of 2000 income tax amounting to Rp 876,820,106.00 from the
claims for tax refund submitted amounting to Rp 889,820,106.00 has been received by the Company in
2001.
Based on the Tax Regulations in Indonesia, the companies should calculate, decide and pay the tax payable.
Before January 1, 1995, the Tax Office can decide or change the tax payable within 5 years from the date
the tax is payable. The correction of the Company’s tax payable will be recorded at the time the decision
letter is received or at the time objection letter is received if the Company filed an appeal.
DEFERRED TAX
Deferred tax is computed based on the effects of temporary differences between assets and liabilities for
financial reporting and income tax purposes.
The details of deferred tax assets and liabilities of the Company and Subsidiaries for the years ended
December 31, 2002 and 2001 are as follows:

Rp Rp
Parent company
Deferred tax liabilities
Installation fee 1,013,962,026,506 868,338,256,661

Difference in foreign exchange - -
Correction from tax office 163,322,819,854 163,322,879,854
Total 1,177,284,846,360 1,031,661,136,515
Depreciation of property, plant
and equipment (4,297,183,143,221) (2,973,484,606,650)
Parent company – net (3,119,898,236,861) (1,941,823,470,135)
Correction of deferred tax due to
revaluation 2,973,484,606,650 -
(146,413,630,211) (1,941,823,470,135)
Financial Report

(In Rupiah)

Rp Rp
Subsidiaries – net (620,136,271,007) (1,058,015,319,916)
Consolidated (766,549,900,218) (2,999,838,790,050)
Tax Payable on Revaluation Increment in Property, Plant and Equipment
The tax payable for the revaluation increment in property, plant and equipment amounted to Rp 11,035,286,578,990.00
and payment made in December 2002 amounted to Rp 1,300,052,771,211.00. The remaining balance amounting
to Rp 9,735,233,807,779.00 will be paid in 5 (five) years and classified as long-term liability.
Reconciliation of Tax Expense
A reconciliation of tax expense between financial reporting and income tax purposes is as follows :
Rp Rp
Loss before tax expense
per consolidated statements of income (4,156,822,755,416) 750,480,243,626
Income before tax expense – Subsidiaries (2,136,287,029,655) (945,682,426,296)
Loss before tax expense – Parent company (6,293,109,785,071) (195,202,182,670)
The maximum tax rate
30 % x (Rp 6,293,109,785,071) in 2002
and Rp 195,202,182,670 in 2001 (1,887,932,935,521) (58,560,654,801)
Tax effects on non-deductible
income (expense)
Fiscal loss current year 704,814,208,801 276,931,425,360
Employee’s benefits 76,376,711,720 60,358,605,887
Non-deductible expenses 102,981,832,004 78,004,652,604
Depreciation expense 2,160,215,416 1,524,489,230
Interest income on current accounts and
time deposits (176,577,909,100) (90,336,238,958)
Provision for doubtful accounts and
inventory obsolescence 103,109,953 18,046,657,160
Correction from tax office - -
Total 709,858,168,794 344,529,591,283
Tax expense of Parent Company (1,178,074,766,727) 285,968,936,482
Tax expense of Subsidiaries (630,856,651,037) 280,228,307,241
Tax expense-consolidated (1,808,931,417,764) 566,197,243,723

Financial Report

(In Rupiah)
16. STOCKHOLDERS’ EQUITY

Rp Rp
- Subcribed and fully paid
capital stock 46,107,154,000,000 46,107,154,000,000
- Other capital 18,917,340,432,152 17,571,443,391,657
- Revaluation increment in property,
plant and equipment 137,599,980,268,685 -
- Retained earnings (deficit) (50,540,154,308,042) (44,480,596,101,271)
Total 152,084,320,392,795 19,198,001,290,386
a. Capital Stock
The Company is wholly owned by the Government of the Republic of Indonesia, represented by the
Ministry of Finance.
Based on the Notarial Deed No. 169 of Sujipto, S.H. dated July 30, 1994, regarding the
Company’s establishment, which was approved by the Ministry of Justice in its Decision Let-
ter No. C2-11.519.HT.01.01. Year 1994 dated August 1, 1994, the authorized capital stock amounted
to Rp 63,000,000,000,000.00 divided into 63,000,000 shares, which consisted of 13,000,000 priority shares
and 50,000,000 common stock with a par value of Rp 1,000,000 per share. The subscribed and fully paid
capital stock amounted to Rp 13,000,000,000,000.00 divided into 13,000,000 priority shares.
Based on the minutes of the General Extraordinary Stockholder’s Meeting held on January 16,
1998, which was notarized by Notarial Deed No. 70 dated January 27, 1998 of Indah Fatmawati,
S.H. and approved by the Ministry of Justice of the Republic of Indonesia in its Decision Letter
No. C2-547.HT.01.04.TH.98 dated February 5, 1998, the stockholder agreed, among others, to:
- Change the 13,000,000 priority shares to become common shares with a par value of Rp 1,000,000.00
per share.
- Increase the subscribed and fully paid capital of the Company amounting to Rp 13,000,000,000,000.00
to become Rp 17,325,800,000,000.00 divided into 17,325,800 shares with a par value of Rp 1,000,000.00
per share.
Based on the minutes of the General Extraordinary Stockholder’s Meeting held on July 18, 2001, which
was notarized by Notarial Deed No. 43 of Haryanto,S.H., dated October 26, 2001 and approved by the
Ministry of Justice of the Republic of Indonesia in its Decision Letter No.C-1763.HT.03.02p Th 1999
dated September 8, 1999, the stockholder agreed, among others, to :
- Compensate the Government’s receivable arising from overdue interest and penalty on two-step
loans amounting to Rp 15,744,405,955,300.00 and Rp 13,036,948,834,152.00, respectively, into the
Government Equity Investment amounting to Rp 28,781,354,000,000.00 which has been approved by
the Ministry of Finance of the Republic of Indonesia in its Letter No. S-352/MK.06/2001 dated June
20, 2001 and notarized by Notarial Deed No. 43 of Haryanto, SH., dated October 26, 2001.
Financial Report

(In Rupiah)
- Increase the subscribed and fully paid capital of the Company of Rp 28,781,354,000,000.00 di-
vided into 28,781,354 shares, which originally amounted to Rp 17,325,800,000,000.00, to become
Rp 46,107,154,000,000.00 divided into 46,107,154 shares.
- The difference between the compensation of the Government’s receivables with the increase in
subscribed and fully paid capital amounting to Rp 789,452.00 is classified as other capital.
b. Other Capital
Other capital represents Government participations which were received by the Company as of Decem-
ber 31, 2002 but the status have not yet been decided, the details are as follows :
Rp Rp
- DIP Rupiah Fund 6,283,506,899,663 5,716,371,776,731
- Project aid 12,180,083,089,850 12,510,820,980,428
- Reclassifications from previous year - (683,936,198,209)
18,463,589,989,513 17,543,256,558,950
- Financial restructuring - 789,452
- Regional government aid and others 453,750,442,639 28,186,043,255
- Revaluation increment in property,
plant and equipment 137,599,980,268,685 -
156,517,320,700,837 17,571,443,391,657
The computation of revaluation increment in property, plant and equipment as of December 31, 2002
amounting to Rp 137,599,980,268,685 represents the difference of the increment property, plant and
equipment as of January 1, 2002, after considering the following items :
Description Rp
Market Value (NP) 196,952,689,026,000

Net Book Value :
Cost 73,757,151,606,162
Accumulated Depreciation (20,824,502,172,704)
Net Book Value (NB) 52,932,649,433,458
Revaluation Increment (NP-NB) 144,020,039,592,542
Add (deduct):
Tax on revaluation (11,035,286,578,989)
Compensation of deferred tax 4,048,747,010,107
Correction of tax on revaluation 13,883,637,299
Charged to expense (PSAK No.48) 24,487,182,567
Revaluation of year 2001/2000 (Batam,Comnet) 551,457,865,485
Minority interest and others (23,348,440,326)
Total (6,300,839,735,693)
Revaluation Increment (Net) 137,599,980,268,685

Financial Report

(In Rupiah)
17. DEFERRED INCOME
Deferred income represents amounts received from customers for electrical connections (BP) and upgrad-
ing of electrical power.
Deferred income are stated at the amounts received for electrical connections less amortization which is
recognized as revenue in the statements of income.
The details of deferred income are as follows :

Rp Rp
BP received
- Beginning balance 5,678,873,278,106 5,145,593,787,493
Correction of beginning balance*) (6,963,882,647) -
- Amount received during the year 803,480,591,786 533,279,490,613
6,475,389,987,245 5,678,873,278,106
Amortization
- Beginning balance 2,176,739,576,893 1,911,142,991,855
Correction of beginning balance *) (2,525,863,239) -
Correction from last year - (261,145,567)
- Amortization during the year 302,307,820,340 265,857,730,605
2,476,521,533,994 2,176,739,576,893
Deferred Income (net) 3,998,868,453,251 3,502,133,701,213
*) Correction of beginning balance is to reduce the BP of Dili Branch which has been transferred to PLN
Head Office as Deferred Charges and awaiting approval from the Government of RI (see Note 29).
Financial Report

(In Rupiah)
18. BANK LOANS

Bank Loans Annual Due
(Rp) Interest Rates Dates
2002
Long-term portions
PT Bank Bukopin 4,319,552,645 Interest rate of 18 % 10/08/2005
PT Bank Negara Indonesia 21,000,000,000 Deposit rate of 6 months + 1.75 % 22/12/2005
PT Bank Rakyat Indonesia 55,000,000,000 Deposit rate of 6 months + 2 % 28/12/2005
PT Mandiri (BBD) 60,000,000,000 Deposit rate of 6 months + 2.5% 23/12/2005
140,319,552,645
Short-term portions
70,037,998,021
2001
Long-term portions
210,308,777,000
Short-term portions
69,691,223,000
The repayment and collaterals of the above credit facilities are as follows (see Notes 3 and 13):
- Credit facility obtained from PT Bank Negara Indonesia : payment in semi-annual installments amount-
ing to Rp 5,250.00 million each and is secured by promissory notes with the same amount of semi-annual
installments.
- Credit facility obtained from PT Bank Rakyat Indonesia: payment in semi-annual installments amounting
to Rp 13,750.00 million each and is secured by accounts receivable and promissory notes.
- Credit facility obtained from PT Bank Mandiri (BBD): payment in semi-annual installments amounting
to Rp 15,000.00 million each and is secured by accounts receivable-trade or land and building if the
Company cannot provide accounts receivable-trade.

Financial Report

(In Rupiah)
- Credit facility obtained from Bank Bukopin amounting to Rp 8 billion for CDB, a subsidiary of PT
Indonesia Power, bears annual interest rate at 18% and is secured by fiduciary guarantee of CDB’s
receivable from PT Para Bandung Propertindo amounting to Rp 2,000.00 million, receivable from
PT Indonesia Power and PT Lirik Petroleum amounting to Rp 1,000.00 million each, and several prop-
erties belonging to CDB.
The loan will be paid in 44 (forty-four) installments and will be due on August 10, 2005.
For the loan facilities, the banks have not imposed special restrictions to the Company.
19. BONDS PAYABLE
Due
December 31, 2002 December 31, 2001 Term Date
Rp Rp
PLN Bonds VI/1997-nominal value 600,000,000,000 600,000,000,000 10 years 08/08/2007
600,000,000,000 600,000,000,000
Current maturity - -
Long-term portion 600,000,000,000 600,000,000,000
The issuance of bonds was based on the Indenture Agreement between the Company and PT Bank Mandiri
(formerly PT Bank Dagang Negara (Persero)), as the Trustee, the bonds are secured by several landrights
and accounts receivable. Interest on bonds is paid quarterly (see Notes 3 and 13).
PLN Bonds VI Series A, B and C Year 1997
These bonds are stated at nominal value and were issued on August 8, 1997 and will be due in 10 (ten)
years.
a. Bonds-Series A, bear fixed interest rate which is calculated based on the 10 (ten) years Asean Interest
Rate Swap from Reuter page EROT plus premium of 1.4%.
b. Bonds-Series B, bear floating interest rate based on the average interest rates for 6 (six) months of time
deposits at PT Bank Negara Indonesia (Persero) Tbk, PT Bank Tabungan Negara (Persero), PT Bank
Mandiri (formerly PT Bank Ekspor Impor Indonesia (Persero)), PT Bank Niaga Tbk and PT Bank Bali
Tbk, which are calculated for 5 (five) working days before the date of the bonds interest rate determina-
tion, plus fixed premium of 1%.
c. Bonds-Series C, bear floating interest rate based on the average for 6 (six) months of IRSOR and
calculated 5 (five) working days before the date of the bonds interest rate determination, plus fixed
premium of 1.4%.
Financial Report

(In Rupiah)
Interest of bonds is paid semi-annually as stated in the coupon interest. The first coupon was paid on
January 20, 1998. These bonds will be due on August 8, 2007.
20. TWO-STEP LOANS
This account represents long-term overseas loans of the Government of the Republic of Indonesia which
are re-loaned the Company. There are no collaterals for these loans.
a. Long-term portions
Source of Interest rates

December 31, 2002 December 31, 2001 Periods
funds %
Rp Rp
Rupiah
IBRD 2,200,283,084,574 2,588,901,635,876 IBRD + (0.75 - 3.25) 17 - 25

ADB 2,340,966,443,232 2,518,603,242,343 ADB + (1.00 - 3.50) 18.5 - 25
KFW Jerman 865,826,797,615 1,048,656,547,669 KFW + 0.75 15 - 25
USAID 4,936,252,821 5,676,577,838 3 30
CDC Inggris - 920,599,952 10.50 20
Swiss Conf. 28,715,894,597 43,073,841,897 4.75 20
US Exim Bank 96,668,456,946 130,879,954,096 7.75 or SBI + 0.75 12
Japan Exim Bank 58,936,365,900 91,453,523,394 SBI + 0.75 12
Meespierson NV 6,357,715,186 21,088,470,193 SBI + 0.75 9.5
Gen. Bank Barclay 33,032,323,314 41,520,447,681 6.95 or SBI + 0.75 12
Midland Bank 277,645,327,791 293,266,960,049 SBI + 0.75 25
Kons.Bank Swiss 386,125,194,582 536,918,560,604 SBI + 0.75 12
Banque Paribas 43,764,707,344 57,559,852,398 SBI + 0.75 12
Roshin Int. 64,362,912,179 73,431,758,142 SBI + 0.75 10
Austria 24,573,356,167 31,594,315,071 SBI + 0.75 12
China 9,031,070,178 11,009,819,022 SBI + 0.75 10
6,441,225,902,426 7,494,556,106,225
USD
IBRD 4,506,186,536,125 5,394,695,867,858 IBRD + 0.35 20
ADB 1,797,906,857,769 2,003,403,560,342 ADB + 0.35 20
Sumisho Leasing 174,137,202,323 275,736,558,491 LIBOR + 1.05 10
Nebula Leasing 374,157,080,807 521,035,635,984 LIBOR + 1.05 12
Mitsui Leasing 37,671,604,475 52,586,793,539 LIBOR + 1.05 12
Islamic Dev-901 38,138,234,341 64,753,775,031 7.85 7.5
US Exim Bank 210,876,727,159 304,231,792,853 6.89 - 6.95 10
7,139,074,242,999 8,616,443,984,098
DEM
KFW Jerman 55,382,300,895 68,247,868,494 1.1 - 2.35 12 - 25
GBP
Merchant Bank 215,140,255,357 245,674,503,529 6.30 12.67

Financial Report

(In Rupiah)

December 31, 2002 December 31, 2001 Periods
funds %
Rp Rp
Bank Paribas 283,623,240,947 304,361,907,768 3.693

498,763,496,304 550,036,411,297
FFR
Bank National 17,224,543,431 23,654,504,832 7.18 10
NLG
ABN AMRO 667,849,832,688 799,127,565,095 6.95 12.75
BEF
Gen. Bank Barcley 8,990,608,236 10,779,077,055 6.95 12
YEN
Japan Exim Bank 1,693,328,547,458 2,342,517,060,511 4.55 - 4.65 10 - 12
ATS
Austria 109,920,442,163 102,904,472,295 3.85 17 - 18.5
AU $
Efic Australia 132,236,111,092 138,628,375,673 3.85 25
Total 16,763,996,027,692 20,146,895,425,575
b) Short-Term Portions

funds %
Rp Rp
Rupiah
IBRD 400,261,084,045 348,720,758,236 IBRD + (0.75 - 3.25)
ADB 181,922,959,557 133,191,853,794 ADB + 91.00 - 3.50)
Kuwait 697,522,556 697,522,556 4
Midland Bank 17,713,114,792 2,777,396,451 SBI + 0.75
KFW Jerman 209,205,228,833 193,776,393,520 KFW + 0.75
USAID 42,802,462 21,082,621 3
CD C Inggris 936,945,542 1,399,794,854 10.5
Swiss Conf. 14,312,852,051 14,312,852,049 4.75
US Exim Bank 26,800,965,125 33,902,803,931 7.75 or SBI + 0.75
Japan Exim 71,305,642,511 71,305,642,501 SBI + 0.75
Meespierson NV 9,064,373,224 2,119,238,397 SBI + 0.75
Gen.Bank Barclay 9,437,850,080 10,387,575,793 6.95 or SBI + 0.75
Kons.Bank Swiss 110,321,484,166 70,047,573,508 SBI + 0.75
Baque Paribas 13,865,507,355 14,111,037,286 SBI + 0.75
Roshin Int. 13,394,907,324 17,076,114,560 SBI + 0.75
Austria 7,066,081,153 7,066,054,153 SBI + 0.75
China 862,674,042 862,674,042 SBI + 0.75
1,087,211,994,818 921,776,368,252
USD
IBRD 275,827,318,495 372,800,421,039 IBRD + 0.35
ADB 76,945,555,292 65,985,247,614 ADB + 0.35
Sumisho Leasing 62,898,099,811 73,167,605,923 LIBOR + 1.05
Financial Report

(In Rupiah)

funds %
Rp Rp
Nebula Leasing 102,667,478,969 119,430,215,950 LIBOR + 1.05

Mitsui Leasing 11,301,480,803 13,146,697,692 LIBOR + 1.05
Islamic Dev. Bank - 901 12,811,649,053 2,728,051,443 7.85
US Exim 70,902,610,047 93,545,570,092 6.89 - 6.95
613,354,192,470 740,803,809,753
DEM
KFW Jerman 35,261,731,285 34,230,490,944 1.1 - 2.35
GBP
Merchant Bank 34,666,382,174 36,469,081,172 6.30
Baque Paribus 8,056,684,193 7,903,061,339 3.693
42,723,066,367 44,372,142,511
FRF
Bank Indosuez - - 6.95
Bank National 6,918,318,698 6,758,428,150 7.18
6,918,318,698 6,758,428,150
NLG
ABN AMRO 153,604,654,972 141,401,700,746 6.95
BEF
Gen.Bank Barclay 2,012,048,219 1,956,783,099 6.95
ATS
Austria 27,469,271,733 35,242,568,437 3.85
YEN
Japan Exim Bank 541,078,027,888 536,659,506,617 3.85
Total 2,509,633,306,450 2,463,201,798,509
21. GOVERNMENT LOANS

Rp Rp
Long-term portions
- Dividends Semesta Development Funds - -
- Development of PLTGU Muara Tawar 103,500,000,000 126,500,000,000
- Rescheduled installments of two-step loans 228,481,581,163 327,757,951,163
- Financial restructuring (RDI VI) 4,994,474,865,214 5,288,267,504,344
5,326,456,446,377 5,742,525,455,507
Short-term portions
- Dividends Semesta Development Funds - 202,384,387,000
- Development of PLTGU Muara Tawar 316,792,639,130 23,000,000,000
- Rescheduled installments of two-step loans 99,857,992,856 214,382,110,001
416,650,631,986 439,766,497,001

Financial Report

(In Rupiah)
Dividends/Semesta Development Funds (DPS)

This represents the Company’s obligation to the Government of the Republic of Indonesia as a result of
distribution of dividends when the Company was still a Perum. Based on the letter from the Ministry of
Finance No. S-625/MK/017/1996 dated November 18, 1996, DPS payable has been rescheduled and will
be paid in annual installments for 10 (ten) years starting from 1996/1997 up to 2005/2006. The loan is non
interest bearing.
Export Prepayment Fund for Development of PLTGU Muara Tawar

This represents the loan facility obtained by the Company from the Department of Finance of the Republic
of Indonesia with a maximum amount of Rp 230,000,000,000.00. This facility has a term of 12 (twelve)
years which will be due on March 13, 2008. This facility bears annual interest rate at 9% for the first 6 (six)
years. The seventh up to twelve installments bear interest at the rate of 3 (three) months Certificate of
Bank Indonesia, 6 (six) months prior to the date of the interest rate determination.
Rescheduled Installments of Two-step Loans

This loan represents overdue principal and interest on two-step loans up to June 30, 1996 in which the
payment has been rescheduled based on a letter from the Directorate General of Financial Institution No.
B-1998/MK.17/1996. The overdue principal amounting to Rp 712,342,879,333.00 will be paid in semi-an-
nual installments up to July 15, 2001 and bears annual interest rate at 14.5%. The overdue interest during
grace period amounting to Rp 801,897,742,538 will be paid annually starting from January 15, 1997 up to
July 15, 2004.
Financial Restructuring
This loan represents the Company’s obligation to the Government/Department Finance for overdue princi-
pal on two-step loans amounting to Rp 5,288,267,504,344.00 based on a letter from the Ministry of Finance
of the Republic of Indonesia No. S-352/MK.06/2001 dated June 20, 2001. The loan has a term of 20
(twenty) years including grace period of 2 (two) years and with administration fee of 4% per year. As of
December 31, 2002, the remaining balance of overdue principal amounting to Rp 4,994,474,865,214.00 will
be paid in semi-annual installments up to July 15, 2001 and bears annual interest rate at 14.5%. The overdue
interest during grace period amounting to Rp 801,897,742,538 will be paid annually starting from January 15,
1997 up to July 15, 2004.
22. DUE TO INDEPENDENT POWER PRODUCERS
This account represents due to independent power producers (IPP) for arrears in electric power purchases
determined in the restructuring covered in the Long-Term Agreement (LTA), which became effective
since 2002. Total long-term liabilities electric power purchases arrears arising from the restructuring amounted
Financial Report

(In Rupiah)
to Rp 7,149,588,377,537.85. This amount represents the transfer of trade payable balances for electrical
purchasing from Paiton I and Paiton II.
Based on the LTA, PLN obtained a hair-cut for the outstanding balance of electric purchases arrears as of
December 31, 2001. Realized hair-cut are recorded as deduction of the balance, while unrealized hair-cut
are not recognized as deductions and do not affect the outstanding balances of the arrears.
23. OTHER PAYABLES

Rp Rp
Long-term portion :
Third parties 9,022,668,397,016 103,861,085,693
Related parties
Social fund, education and other payables 348,004,436 341,328,880
9,023,016,401,452 104,202,414,573
Short-term portion :
Third parties 369,828,667,564 273,764,676,695
Related parties
Employees and others 32,468,411,562 32,740,590,593
DP-PLN 902,794,496 -
33,371,206,058 32,740,590,593
403,199,873,622 306,505,267,288
24. CUSTOMERS’ SECURITY DEPOSITS
This account represents security deposits from customers which are calculated based on the connected
power supply and the rate of electricity used. Customer deposits will be refunded, net of unpaid electricity
bills, when customers stop subscribing for electricity.
25. PROJECT PAYABLES
This account represents payables to contractors/suppliers arising from purchases of goods and services
which will be financed by two-step loans, but as of December 31, 2002 and 2001 the payment is still in
process or the Withdrawal Authorization (WA) has not yet been issued.

Financial Report

(In Rupiah)
26. ACCOUNTS PAYABLE-TRADE
This account represents payables arising from purchases of electricity, fuel and goods and services, as
follows :

Rp Rp
Third parties
- Independent Power Producers 5,964,961,780,246 15,900,556,184,041
- Pertamina 2,249,560,706,097 1,720,291,010,733
- PT Tambang Batubara Bukit Asam 331,818,070,266 381,243,515,010
- Unocoal of Geothermal Indonesia,, Ltd. 156,651,533,907 1,116,923,414,913
- PT Kideco Jaya Agung 101,275,058,015 53,533,241,091
- PT Adaro Indonesia 96,032,918,884 168,721,655,970
- PT Bukaka Teknik Utama 34,038,160,290 37,382,080,754
- PT Dwipangga Sakti 30,215,580,978 34,932,309,568
- PT Expan Kalimantan 27,571,686,798 56,133,939,521
- PT Berau Coal 12,806,542,816 50,809,099,384
- Others 517,898,464,945 386,600,797,452
9,522,830,503,242 19,907,127,248,437
Related parties
- Employee Cooperative 12,786,300,059 6,446,225,816
- Others 18,665,272,551 16,818,188,874
31,451,572,610 23,264,414,690
9,554,282,075,852 19,930,391,663,127
Accounts payable include balances in foreign currencies (see Note 43).
Accounts payable to third parties mainly represent short-term debts to Independent Power Producers
(IPP) for electric power purchases and the calculated arrears as stated in the Long Term Agreements
(LTA) which amended the Power Purchase Agreements (PPA). The LTAs which effective in 2002, were
issued to determine the tariff of electric power purchases in the future and also to finalize the restructuring
of overdue debts to IPP as of December 31, 2001.
Based on the restructuring of the arrears in electric power purchases, the total long-term liabilities amounted
to Rp 7,149,588,377,538.00 and recorded as long-term debts under due to independent power producers
account (see Note 22).
Financial Report

(In Rupiah)
27. ACCRUED EXPENSES
This account consists of :

Rp Rp
Third parties :
- Interest of bond payables 40,016,992,018 37,412,403,930

- Accrued expenses 24,024,028,154 37,179,314,670
64,041,020,172 74,591,718,600
Related parties
- Interest of two-step loans 650,694,562,512 721,676,804,869

- Interest of bank loans 131,355,000 200,865,000
- Interest of Government loans 93,935,258,852 99,629,443,523
- Other accrued expenses 45,495,317,985 55,520,834,752
790,256,494,349 877,027,948,144
854,297,514,521 951,619,666,744
Accrued expenses-interest of two-step loans include balances in foreign currencies (see Note 43).
28. ELECTRICITY SALES
Electricity sales by tariff classifications are as follows :
2002 2001
Rp Rp
Group of tariff
- Household 13,352,473,316,509 8,456,684,111,548
- Business 7,021,370,257,141 5,149,643,177,293
- Industry 16,313,884,749,707 12,872,974,817,856
- Offices/Government/Public 2,330,733,398,136 1,796,680,542,981
Total 39,018,461,721,493 28,275,982,649,678
Revenue from electricity sales is calculated based on basic electricity tariff determined by the Government.

Financial Report

(In Rupiah)
29. CUSTOMER CONNECTION FEES
2002 2001
Rp Rp
Customer connection fees 302,307,820,340 265,857,730,605
Customer connection fees represent amortization of connection fees received from customers which have
been installed as of December 31, 2002 and 2001 (see Note 17).
30. ELECTRICITY SUBSIDY
Electricity subsidy from the Government in 2002 of Rp 4,739,073,653,216.00 consists of the 2002
electricity subsidy amounting to Rp 3,206,066,985,633.00, and 2001 electricity subsidy which was re-
ceived in 2002 amounting to Rp 1,533,006,667,583.00, due to the change of subsidy recognition method
from cash basis to accrual basis. The Company already received the 2002 electricity subsidy amounting
to Rp 2,871,890,000,000.00 from the total of Rp 3,206,066,985,633.00 and the remaining balance is waiting
for the verification from the auditor which has been appointed by the Ministry of Finance.
Electricity subsidy from the Government is recorded in the statements of income as operating revenue
because the subsidy was given to customers below or the same with 450 VA, which selling price is under
the cost of production.
31. OTHER OPERATING REVENUE

2002 2001
Rp Rp
- Upgrading of electrical connections 21,743,098,111 18,034,255,184
- Rent of trafo 49,278,405,450 46,288,129,751
- Services and others 52,488,546,189 18,584,884,428
Total 123,510,049,750 82,907,269,363
Services and others mainly consist of revenue from other operating revenues of Subsidiaries.
Financial Report

(In Rupiah)
32. FUEL AND LUBRICANTS

2002 2001
Rp Rp
Fuel Oil
- HSD 6,507,147,686,674 3,135,079,254,586
- IDO 54,178,602,278 24,157,048,647
- Residu / M F O 2,592,903,757,935 1,179,892,176,670
- Others 17,284,371,429 14,280,955,247
9,171,514,418,316 4,353,409,435,150
Non-Fuel Oil
- Natural gas 4,533,183,365,958 5,801,689,790,285
- Coal 3,088,502,087,194 2,798,124,987,378
- Geothermal 959,081,399,811 884,311,441,979
- Lubricants 173,015,861,836 152,942,715,927
- Water 31,964,495,683 16,817,158,684
8,785,747,210,482 9,653,886,094,253
17,957,261,628,798 14,007,295,529,403
33. ELECTRICITY PURCHASES
This account represents purchases of electricity from the Independent Power Producers (IPP) with the
details as follows :
2002 2001
Rp Rp
Purchases/Rents from
PT Paiton Energy Company 4,170,286,830,910 2,865,376,736,887
PT Jawa Power 4,003,251,012,731 2,126,513,911,076
PT Unocal (UGI) 840,525,662,705 1,295,691,221,559
PT Magma Nusantara 756,040,817,485 805,712,839,981
PT Energi Sengkang 415,062,453,332 483,574,288,802
PT Makassar Power 143,755,268,909 137,115,040,654
PT Cikarang Listrindo 247,401,995,235 519,525,301,191
PO Jatiluhur and others 127,298,511,784 90,516,578,907
PT Amoseas (Drajat) 200,629,258,336 276,989,309,045
Geodipa 20,383,986,603 -
Rents of generator 244,207,150,686 116,125,309,739
11,168,842,948,716 8,717,140,537,841
Since 2002, electric power purchases from independent power producers are based on the tariff stated in
the Long-Term Agreements (LTA) which amended the Power Purchase Agreements (PPA).

Financial Report

(In Rupiah)
34. DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT

2002 2001
Rp Rp
15,626,762,571,070 3,404,113,925,841
Depreciation expenses in 2002 increased significantly as compared to the balance in 2001 due to the revalu-
ation of property, plant and equipment as of January 1, 2002.
35. MAINTENANCE EXPENSES
This account represents spare parts usage and contractor fees for maintenance purposes. Maintenance
expenses for the years ended 2002 and 2001 amounted to Rp 3,588,827,620,484 and Rp 2,630,359,602,830,
respectively.
36. PERSONNEL
The details of personnel expenses are as follows :
2002 2001
Rp Rp
Salaries and wages 931,901,357,266 842,232,791,518
Housing, transportation and TKK 587,219,219,431 379,953,355,018
Other benefits 598,110,585,926 503,737,996,901
Religious and production benefits 333,894,703,198 263,254,854,143
Company’s contributions and THT 132,163,729,674 97,150,983,043
2,583,289,595,495 2,086,329,980,623
Personnel expenses in 2002 amounting to Rp 496,959,614,872 increased as compared to the balance of 2001.
37. OTHER OPERATING EXPENSES

2002 2001
Rp Rp
- Data processing and billing expenses 236,392,122,197 187,115,314,031
- Meals 81,228,469,694 57,674,293,357
- Transportation 179,836,620,746 124,121,970,131
- Postage, telephone and telegram 60,043,646,776 60,020,551,870
- Gas, electricity and water 98,002,561,213 75,891,016,198
- Rent of buildings/land and others 55,247,320,586 37,992,358,466
- Stationeries 69,974,721,386 65,906,158,964
Financial Report

(In Rupiah)
2002 2001
Rp Rp
- Printed materials 67,833,381,063 79,279,560,085
- Insurance 110,631,900,849 44,408,664,178
- Others 461,416,529,215 361,737,374,861
1,420,607,273,725 1,094,147,262,141
38. OTHER INCOME (CHARGES)

2002 2001
Rp Rp
- Services income 44,093,049,058 35,231,042,023
- Penalty income - opal 752,978,006 5,425,195,073
- PPJU premium 18,541,760,116 4,786,689,590
- PFK income 15,114,763,683 12,685,055,140
- Penalty on delay in billing payment 109,418,431,106 78,936,314,811
- Other penalties 22,947,305,076 4,925,189,165
- Receipt of receivables which have been written-off 652,178,040 1,046,932,899
- Gain on sale of property, plant and equipment 30,955,050,441 16,348,663,716
- BBM differences (5,296,112,744) (1,886,651,745)
- Research and development (12,583,958,062) (87,935,840,922)
- Lost on property, plant and equipment written off (78,220,416,316) (106,498,403,840)
- Loss on materials written-off (8,451,062,843) (18,351,039,179)
- Amortization of deferred charges (4,779,256,133) (2,359,217,572)
- Other income ( charges ) 212,582,698,406 (82,175,838,621)
345,645,823,538 (139,821,909,462)
39. INTEREST AND FINANCING CHARGES
This account represents financing cost charged to income/loss of current period with details as follows :
2002 2001
Rp Rp
- Two-step loans 1,808,793,028,318 2,042,989,258,129
- Penalty (20,536,894,110) 75,537,123,508
1,788,256,134,208 2,118,526,381,637
- Bank loans 47,167,177,637 63,959,319,916
- Government loans 221,887,316,894 238,879,954,217
- Bonds 89,930,798,988 198,141,504,036
- Independent power producers 4,990,412,785 -
363,975,706,304 500,980,778,169
2,152,231,840,512 2,619,507,159,806

Financial Report

(In Rupiah)
40. GAIN (LOSS) ON FOREIGN EXCHANGE
This account represents gain (loss) on foreign currency transactions and adjustments on foreign exchange
rates for 2002 and 2001. At the end of year, assets and liabilities denominated in foreign currencies are
adjusted using the selling rates for liabilities and buying rates for assets. For December 31, 2002 and 2001,
the Company used the exchange rates published by Bank Indonesia (Rp 8,895 for buying rate and Rp 8,985
for selling rate in 2002 and Rp 9,547 for buying rate and Rp 9,643 for selling rate in 2001).
41. EXTRAORDINARY INCOME (LOSS)
2002 2001
Rp Rp
2,333,041,074,720 183,393,988,135
In 2002, the Company has extraordinary income arising from the hair-cut of PLN’s payables as a result of
the renegotiation with independent power producers as follows :
- Gunung Salak and Unocal 1,2,3 – UGI amounting to Rp 1,178,733,030,225.00
- Independent Power Producers (IPP) Unocal 4,5,6 amounting to Rp 1,154,308,044,495.00
42. RELATED PARTY TRANSACTIONS
In the normal course of business, the Company and its Subsidiaries entered into certain transactions with
related parties as follows (see Note 2c):
a. Employees
The Company and its Subsidiaries granted non-interest bearing housing loans to their employees. The
outstanding receivables arising from these transactions are presented as part of “Accounts Receivable-
Others” in the consolidated balance sheets.
b. PLN Pension Fund

Dana Pensiun PLN was established to manage the fund contribution of employees and the Company
and the payment of the retirement benefits of the Company and Subsidiaries ‘employees’.
c. Employees’ Cooperative
Transactions between the Company and Employees’ Cooperative (Koperasi Karyawan) mainly consist
of car rentals, collections of electricity bills, payment of car insurance and building and yard maintenance
services.
Financial Report

(In Rupiah)
43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

Amount in foreign Equipment in Amount in foreign Equivalent in
CRY currencies Rupiah currencies Rupiah
ASSETS
Cash and cash equivalents CHF 809,633.22 5,191,157,731 801,355.99 5,001,062,406
EUR 6,897,588.08 64,292,901,286 - -
GBP 10,833.87 154,495,970 306,038.31 4,639,094,028
JPY 346,294,041.05 25,972,053,079 58,213,345.72 4,631,896,207
USD 25,241,498.37 225,872,897,187 22,181,403.84 231,543,298,315
321,483,505,253 245,815,350,956
Temporary investments EURO 38,665.12 353,321,903
USD 500,000.00 4,470,000,000 3,078,341.96 31,919,752,384
4,470,000,000 32,273,074,287
Other receivables USD 234,715.40 2,098,355,676 234,715.40 2,441,040,160
TOTAL ASSETS 328,051,860,929 280,529,465,403
LIABILITIES
Accrued expenses ATS 64,819.45 44,364,931 - -
Interest on two-step loans AUD 533,094.23 2,762,313,073 636,634.35 3,398,914,398
BEF 595,872.70 139,117,271 790,455.75 181,030,175
DEM 5,973.02 28,762,421 - -
FRF 836,148.33 1,200,522,576 - -
GBP 336,193.46 4,844,292,250 1,476,070.27 22,375,070,300
JPY 620,633,809.18 47,038,332,905 613,625,992.35 48,824,747,509
NLG 1,161,706.64 4,964,830,247 6,633,896.13 27,811,150,050
USD 22,878,866.99 205,566,619,919 25,257,468.97 263,991,065,673
266,589,155,593 366,581,978,105
Two-step loans ATS 200,733,448.87 137,389,713,896 205,762,732.14 138,147,040,732
AUD 25,520,028.54 132,236,111,093 25,965,815.99 138,628,375,673
BEF 47,127,021.77 11,002,656,455 55,610,253.05 12,735,860,154
DEM 18,823,827.94 90,644,032,180 21,694,740.18 102,478,359,438
FRF 16,815,188.89 24,142,862,129 21,593,959.80 30,412,932,982
GBP 37,579,120.25 541,486,562,671 39,212,783.94 594,408,553,808
JPY 29,481,237,503.05 2,234,406,575,346 36,185,288,573.84 2,879,176,567,128
NLG 192,209,820.79 821,454,487,659 224,347,915.32 940,529,265,841
CAD
USD 862,818,968.89 7,752,428,435,469 895,259,069.45 9,357,247,793,851
11,745,191,436,898 14,193,764,749,607
Project payables ATS 28,847,118.41 19,744,121,723 40,904,289.15 27,462,730,693
(loan in process) EURO 1,188,162.11 11,190,205,762 247,170.50 2,283,489,608
SFR 3,645,299.45 23,617,676,417 3,866,156.23 24,127,714,492
CAD 222,273.32 1,267,549,181 335,338.64 2,206,042,010
CHF 307,356.26 1,991,342,767 879,402.67 5,488,132,240
DEM 1,804,739.48 8,690,524,457 25,655,079.01 121,185,613,986
FRF 35,945,797.94 51,610,257,762 43,568,516.22 61,361,898,245
GBP 1,629,494.41 24,286,375,697 1,706,833.36 25,873,101,772
ITL 11,948,770.99 58,071,027 0 0
JPY 1,604,045,906.30 121,570,639,238 1,600,818,167.16 127,373,259,597
NGL 3,407,031.18 14,560,765,456 3,407,032.48 14,283,234,137
USD 23,458,332.03 210,773,113,257 27,964,304.77 292,282,913,490
489,360,642,744 703,928,130,270
Accounts payable USD 1,415,067,840.90 12,709,692,483,837 1,505,999,213.80 15,917,297,796,644
12,709,692,483,837 15,917,297,796,644
TOTAL LIABILITIES 25,210,833,719,072 31,181,572,654,626

Financial Report

(In Rupiah)
44. BUSINESS SEGMENT INFORMATION
The summary of the financial statements of the Company’s group is as follows :

December 31, 2002 (in million Rupiah)
PT PLN PT IND PT PJB PT PLN PT ICON Consolidated Total-

(Parent) POWER BATAM PLUS Elimination net
Total assets 213,658,782 52,373,409 39,313,316 1,268,168 111,055 (92,826,127) 213,898,603

Total liabilities 57,280,349 9,650,877 6,428,386 596,808 38,710 (16,183,625) 57,811,505
Total operating income 40,635,834 11,928,710 9,976,535 361,042 31,354 (23,404,080) 39,529,395
Income (loss) from
operations (13,638,247) 1,517,677 785,543 14,368 1,202 (1,496,741) (12,816,198)
Net income (loss) (6,059,558) 943,448 529,972 22,392 263 (1,496,075) (6,059,558)
December 31, 2001 (in million Rupiah)
PT PLN PT IND PT PJB PT PLN PT ICON Consolidated Total-

(Parent) POWER BATAM PLUS Elimination net
Total assets 80,958,026 15,443,549 10,631,706 866,273 5,688 (29,909,112) 77,996,130

Total liabilities 58,251,698 6,863,247 4,595,265 359,992 135 14,182,811 55,768,453
Total operating income 22,826,161 6,825,045 5,156,568 41,482 1,108 (12,293,701) 22,556,663
Income (loss) from
operations (6,266,885) 1,415,923 611,171 (14,468) (22) (404,877) (4,659,158)
Net income (loss) (25,563,095) 358,245 56,182 (10,134) 53 404,346 (25,563,095)
45. SIGNIFICANT COMMITMENTS
a. The Company entered into fuel supply agreements, with details as follows :
1) Coal
Suppliers Contract No. Total (tons) Periods
PT Adaro Indonesia 055.PJ/061//1996 5,400 2000 - 2002
PT Multi Harapan Utama 059,PJ/061//1996 576,000 2000 - 2002
PT Benala COAL Mining 060,PJ/061//1996 1,020,000 2000 - 2002
PT Batubara Bukit Asam 020,PJ/9220/PJB I/1997 20,100,000 1997 - 2002
PT Allied Indo Coal 041,A,PJNP/9220/1997/M 850,000 1997 - 2001
PT Jorong Barutama Greaston 050,PJNP/9212/1997/M 1,940,000 1999 - 2004
2) Gas
Sector Suppliers No. Agreements Periods Quantity
(BSCF)
Muara Karang and Tjg Priok Pertamina 055PJ/9221/199 1994-2004 1,045.33
Gresik Pertamina/Arco PJ-291/PST/89 1993-2012 1,392.00
Gresik Pertamina/Kodeco PJ.246/PST/87 1994-2004 158.40
Paya Pasir Belawan Pertamina PJB.175/PST/88 1987-2001 262.50
Financial Report

(In Rupiah)
b. The Company entered into electricity power purchase agreements with independent power producers as
follows :
1) Commenced Operations
No Company’s Name Name of Projects Fuel Capacity AF**) Purchases Periods

(MW) (%)
1. PT Cikarang Listrindo Cikarang - West Java Gas 150 72 0 1996 - 2016

2. PT Energi Sengkang Sengkang - South Sulawesi Gas 135 80 56 1997/1998-
2028/2031
3. PT Nusamba UNOCAL Salak - West Java Geothermal 165 85 0 1997/1998-
2028/2031
4. PT Makasar Power Co. Pare-pare, South Sulawesi MFO/Gas 60 80 0 1998-2016
5. PT Paiton Energy Co. Paiton I - East Java Coal 1,230 83 0 1998-2018
6. PT Jawa Power Paiton II – East Java Coal 1,220 80 0 2000-2028/2030
7. PT. Prasarana Nusantara Drajat, West Java Geothermal 275 95 2000-2030/2040
Jaya Chevron. Texaco
8 PT Magma Nusantara, Ltd Wayang Windu, West Java Geothermal 220 100 1998/1999-
2008/2029
Total 3,455
2) Not yet in Operations
Capacity AF
No Company’s Name Name of Projects Fuel Minimum Periods
(MW) (%)
1 PT Tenaga Listrik Amurang *) Amurang-North Sulawesi Coal 110 80 0 1998-2028

2 PT Daya Listrik Pratama Cilegon – West Java Coal 400 80 0 -
3 PT Tenaga Listrik Sibolga *) Sibolga-North Sumatera Coal 200 80 0 1998-2028
4 PT CEPA Indonesia Tanjung Jati B-Middle Java Coal 1,320 80 0 2000-2030
5 PT Asrigita Prasarana *) Sulawesi Gas 130 80 56 1999-2019
6 PT East Jawa Power Pasuruan-East Java Gas 500 85 56 -
7 PT Pandanwangi Sekartaji,
California energy Bedugul-Bali Geothermal 220 95 0 1998-2028
8 PT Yala Teknosa
Geothema *) Cibumi-West Java Geothermal 10 80 0 1998-2028
9 PT Himpuma California Dieng-Middle Java Geothermal 150 100 1996/2000-
Energy Ltd *) 2026/2030
10 PT Lakota Trimas Bina
Energy, Asia Power *) Kamojang-West Java Geothermal 60 60 0 1998-2028
11 Karaha Bodas Co, LLC Karaha-West Java Geothermal 220 100 0 1998-2028
12 Patuha Power Ltd Patuha-West Java Geothermal 220 100 0 1998/2028
13 PT Parama Nusamba 1998/2001-
UNOCAL*) Sarulla-North Sumatera Geothermal 330 80 0 2029/2032
14 PT Dizamantra Powerindo 1999/2002-
Enserch *) Sibayak N-Sumatera Geothermal 120 95 0 2029/2032
15 PT Bajradaya Sentanusa *) Asahan I-North Sumatera Water 180 1175 **) 0 2000/2030
16 PT Power Jawa Barat Serang-West Java Coal 450 83 0 2000-2030
17 PT CEPA Insonesia *) Tanjung Jati C-Middle Java 1,320 80 0 2003-2033
Total 5,940

Financial Report

(In Rupiah)
Description :
*) Periods based on contracts
**) AF = Power supplier factor which should be absorbed by the Company
***) In GWh
The Company has also power purchase agreements with small scale independent power producers. Based
on the Presidential Decree No. 5 year 1998 dated January 10, 1998, 17 of the other 24 IPPs above will be
reviewed/postponed. Management is of the opinion that the postponement of these projects will not affect
the national electricity needs.
c) Development and Management of the Company’s Waste
On May 6, 1996, the Company entered into cooperative agreements with third parties regarding the deve-
lopment and management of the waste factories for several PLTP. These agreements will end in 30 years
after the PLTPs are operated. The Company has a commitment to provide the location of the factories,
waste and electricity as needed. Moreover, the Company has an obligation to provide utilities during the
construction period and when the factories are operated. All of the operational expenses of the development
of the factories are paid by third parties. If the factories are already operating and producing, the Company
can make available its capital.
d) Development and Establishment of Power Plants
The Company has several Memorandum of Understanding regarding the development and establishment of
power plants. Several analytical studies are ongoing and if the results are beneficial, the cooperative agree-
ments will be made.
In the short term, the Company do not anticipate the possibility of significant commitments in those analyti-
cal studies.
e ) As of December 31, 2002, the Company has Bank Guarantee facilities (stand by letter of credit) as follows:
Issuing bank Facilities amount Due date
PT Bank Mandiri (Eks. BDN) US$ 223,399,000 March 31, 2002

PT Bank Negara Indonesia US$ 232,505,000 March 31, 2002
These facilities are used as guarantees for the payment of gas to Pertamina by the Subsidiaries.

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Annual Report 2002 I 68

Annual Report 2002 I 69

INDEPENDENT AUDITORS’ REPORT

Annual Report 2002 I 71

BASIS OF THE ENGAGEMENT

Annual Report 2002 I 73

BASIS OF THE ENGAGEMENT AND SCOPE OF AUDIT

1. Basis of the Engagement

a. The third amendment of the 1945 Constitution article 23 E, 23 F and 23 G;

Certain provision of laws and regulations which we tested, include :

THE AUDIT BOARD OF

Annual Report 2002 I 75

PT PERUSAHAAN LISTRIK NEGARA (PERSERO) AND SUBSIDIARIES

Notes December 31, 2002 December 31, 2001

Property, plant and equipment

Total other assets 1,139,102,953,961 762,651,499,121

Total non-current assets 201,005,296,267,378 68,543,355,218,431

Total current assets 12,893,307,402,250 11,363,161,960,066

TOTALASSETS 213,898,603,669,628 79,906,517,178,497

Annual Report 2002 I 77

PT PERUSAHAAN LISTRIK NEGARA (PERSERO) AND SUBSIDIARIES

Notes December 31, 2002 December 31, 2001

Revaluation increment in property, plant and equipment 16b 137,599,980,268,685 -

Retained earnings (deficit)

Total stockholders’ equity - net 152,084,320,392,795 19,198,001,290,386

MINORITY INTEREST IN NETASSETS -

DEFFERED INCOME - NET 2r, 17 3,998,868,453,251 3,502,133,701,213

Deferred tax liabilities - net 15 776,740,773,943 3,020,649,688,460

Customers’ security deposits 24 2,633,024,822,467 2,363,026,311,746

Projects payable 25 551,572,274,747 748,610,998,175

Total non-current liabilities 42,964,714,676,859 32,936,219,071,036

PT PERUSAHAAN LISTRIK NEGARA (PERSERO) AND SUBSIDIARIES

Notes December 31, 2002 December 31, 2001

TOTAL STOCKHOLDERS’ EQUITY AND LIABILITIES 213,898,603,669,628 79,906,517,178,497

Annual Report 2002 I 79

PT PERUSAHAAN LISTRIK NEGARA (PERSERO) AND SUBSIDIARIES

For The Years Ended

OTHER INCOME (CHARGES)

INCOME (LOSS) BEFORE TAX (6,577,814,008,961) 566,144,678,833

TAX EXPENSES 2s, 15

LOSS BEFORE EXTRAORDINARY INCOME (8,392,599,281,491) (3,275,230,723)

EXTRAORDINARY INCOME (LOSS) 41 2,333,041,074,720 183,393,988,135

Balance, January 1, 2001 17,325,800,000,000 45,960,017,746,172 1,894,148,569,355 (46,554,863,428,038) 18,625,102,887,489

Annual Report 2002 I 81

PT PERUSAHAAN LISTRIK NEGARA (PERSERO) AND SUBSIDIARIES

For The Years Ended

CASH FLOWS FROM OPERATINGACTIVITIES

Cash receipts from customers 41,155,376,332,501 28,996,958,218,591

CASH FLOWS FROM INVESTINGACTIVITIES

CASH FLOWS FROM FINANCINGACTIVITIES

Cash payments for two-step loans (2,262,793,294,713) (2,578,618,537,319)

NET INCREASE IN CASH AND CASH EQUIVALENTS 1,076,056,414,635 1,497,018,584,545

CASHAND CASH EQUIVALENTSAT BEGINNING OF YEAR 6,142,460,790,375 4,645,442,205,830

CASH AND CASH EQUIVALENTS AT END OF YEAR 7,218,517,205,010 6,142,460,790,375

PT PLN (PERSERO) AND SUBSIDIARIES

The Company’s Establishment and Other General Information

Annual Report 2002 I 83

PT PLN (PERSERO) AND SUBSIDIARIES

The Board of Directors and Commissioners