Green Transformation - Development of Bio Gas Power Plant

The Company, who has committed on the Green Transformation, is in the development stage to build bio gas power plants from the conversion of liquid waste of the Company’s tapioca starch factories. The power plants are built in the 8(eight) tapioca starch plants in Lampung and the purpose of developing the bio gas power plants is to meet the Company’s needs for energy.

These anaerobic digester projects will capture and convert the cassava effluent from the plants into methane gas. The methane will be used to power gas generators to produce electricity for the plants' own consumption. The projects will also reduce the greenhouse gas for carbon dioxide going into the atmosphere. These projects, which will be registered with UNFCCC (United Nations Framework Convention in Climate Change), as part of the Clean Development Mechanism - CDM under Kyoto Protocol umbrella, will also generate carbon credits that can be traded on global climate exchanges.

With the development of bio gas power plants, the Company will obtain the following benefits:

• Continuity of power.
  Stable supply of electricity
• Efficiency.
  The cost to produce electricity from bio gas power plant is much cheaper than using diesel fired power generators and/or electricity supplied by PLN.
• Clean Environment Management.
  The utilization of liquid waste from the Company’s factory is in accordance with both the Clean Development Mechanism (CDM) program in the Kyoto Protocol and the United Nation Framework Convention in Climate Change (UNFCCC).
• Additional Revenues.
  With the development of bio gas power plant that is according to CDM in the Kyoto Protocol, it will generate Certified Emission Reduction (CER) that is required by developed countries in order to reduce gas emission from the greenhouse. This CER will be sellable to the developed country which contribute as additional other income to the Company.

Bio Gas Power Plant I - Way Abung, Lampung

The first project of the bio gas power plant is built in a tapioca starch plant in Way Abung - Lampung with its capacity of bio gas power plant of more or less 5.7 MW. The Company has entered into an agreement with Japanese investor i.e : Sumitomo Corporation / NEDO Fund.

On 18 June 2007, the Company obtained a letter of approval from the Designated National Authority (DNA) of the Republic of Indonesia approving the Company's tapioca starch production facilities effluent methane extraction and onsite power generation project in Way Abung - Lampung as a CDM Project. It is also confirmed that the said project will contribute to the sustainable development in Indonesia.

Furthermore, the CDM project at Way Abung factory has been registered at UNFCCC since Nov 02, 2007.

Please visit at the below site:
http://cdm.unfccc.int/Projects/DB/DNV-CUK1181904711.56/view.html

Bio Gas Power Plant II - Tulang Bawang, Gunung Agung & Pakuan Agung - Lampung

In August 2007, the Company entered Certified Emission Reduction Revenue Sharing Agreement with Sumitomo Corporation of Japan, for 3(three) anaerobic digester projects (namely Bio Gas Power Plant II) in 3(three) tapioca starch factories located in Tulang Bawang, Gunung Agung and Pakuan Agung, Lampung with its capacity of bio gas power plant of more or less 10.7 MW.

This Project is co-financed by Sumitomo Corporation and the rights issue proceed of the Company.

Bio Gas Power Plant III - Ketapang and Terbanggi, Lampung

In March 2008, the Company entered Certified Carbon Emission Reduction Agreement with Cargill Incorporated on the construction, financing and management of one anaerotic digester projects (namely Bio Gas Power Plant III) located in Terbanggi, Lampung.

Meanwhile, the Bio Gas Power Plant in Ketapang is fully self-financed by the Company.

The capacity of bio gas power plant of more or less 4.2 MW.

Bio Gas Power Plant IV - Way Jepara and Unit 6, Lampung

In September 2007, the Company signed an agreement with Cargill Incorporated on the construction, financing and management of two anaerobic digester projects (namely Bio Gas Power Plant IV) in 2 tapioca starch factories located in Way Jepara and Unit 6, Lampung with its capacity of bio gas power plant of more or less 4.2 MW.

CASH DIVIDEND

On December 14, 2007, the Company distributed cash dividend interim for year 2007 amounting to Rp 11.083 billion.

On July 28, 2008, the Company distributed cash dividend final for year 2007 amounting to Rp 7.416 billion.

On September 22, 2008, the Company distributed cash dividend interim for year 2008 amounting to Rp 26.089 biilion.