Final Eng Ar07

Farewell Letter from
the President Director

Please see page 50
Annual Report
A S X : AT M • IDX:ANTM For the Year 2007
R
1e a
0s ons t
ves
Generating
Higher Returns
o I n
t ntam
in A
for a Better Future

Net Profit
Surges 231%
Please see
Review of Operations,
page 69
Nickel Exports
Increase
Significantly
Please see
page 71
Cash Soars 317%;

Antam is Poised
to Invest and Grow
Please see
pages 63, 80
r t !
A le
r
v e sto h e re. ...
look minutes
I n t o
eed three
u n
Yo take
Why
o n l y
It’ll
1 Diversified.
Vertically- 2 Gold. Nickel.
Bauxite.
Integrated.
A great mix.
Indonesian. For more information please see Our Products and
How We Make Them, page 105.
Experienced.
For more information please see Detailed Description of Antam,
page 103.
4 Low cost operations

(current cash costs
5 Unique position to
lower ferronickel
for ferronickel are costs through fuel
average). conversion.
For more information please see Cost of Sales, page 74. For more information please see Cash Costs and
Cost Reduction Program, page 77.
8 Exciting project
pipeline, to move
downstream into
9 Targeted gold
acquisition
more value-added program.
For more information please see
processing activities. Acquisitive Growth Projects, page 83.
For more information please see Organic Growth Projects,

page 81.
Antam?
3 Large high quality reserves
and resources of nickel
and bauxite.
For more information please see Exploration and Reserves, page 96.
6 Industry-beating
margins and
7 Possible
ferronickel
returns. production
For more information please see Our Competitors, page 109. increase over
next few years.
For more information please see Production
Volume Targets, page 45.
10 Big dividends, lots of cash and

strong financial position to make
investments.
For more information please see Financial Review, page 61.
2 0 0 7 A NT A M A n n u a l R e p o r t
www.antam.com
It is the mission of this annual report to create a clear and

positive picture of the company without distorting the truth,
to keep our stakeholders informed.
If there is ANY part of this report that requires further

clarification, please do not hesitate to send our IR team an
email (cameron@antam.com, eko.endriawan@antam.com,
ftriadi@antam.com, yudi.nurhadi@antam.com). We actually
prefer to have an ongoing dialogue with you and hopefully
this report is only the beginning...
2007 Antam Annual Report www.antam.com

Table of Contents
The Inves tm e nt C a s e f o r A n ta m Iron, Nickel Contained in Pig Iron 83

10 YEAR FINANCIAL HIGHLIGHTS 4 Acquisitive Growth Projects 83
WHY WE DO WHAT WE DO: OUR MISSION AND VISION 7 Capital Expenditure Plans 84
WHO WE ARE: ANTAM DESCRIBED 8 B l u e S k y: Ex is ti n g Mi n o rit y-
AN AMAZING YEAR OF GROWTH 10 Sta k e J oi n t Ve nt u r e s
OUTPERFORMING OUR PEERS 12 PT Nusa Halmahera Minerals 92
DELIVERING SIGNIFICANT SHAREHOLDER RETURNS 13 PT Galuh Cempaka 93
2007: A GREAT YEAR (CALENDAR OF SIGNIFICANT EVENTS) 14 PT Cibaliung Sumberdaya 93
OUR STRATEGY 16 PT Dairi Prima Mineral 94
OUR RESERVES 17 PT Weda Bay Nickel 94
A WELL GOVERNED STATE-OWNED ENTERPRISE 18 Ex pl o r atio n a n d R e s e r v e s
EXTERNAL RECOGNITION AND CERTIFICATION 19 Summary Tables of Reserves and Resources 96
EXCITING PROJECTS 20 Nickel 97
OUR RISKS AND CHALLENGES 22 Detailed Nickel Reserves and Resources Table 98
THE OUTLOOK 23 Gold 100
Detailed Gold Reserves Table
MAP OF OPERATIONS AND PROJECTS 24
Bauxite 101
Antam S har e s a n d Sh a r e h o l d e r s Detailed Bauxite Reserves and Resources Table
Market Overview 28 NOTEs TO RESERVES and resources estimations 102
Shareholders Information 28 D eta il e d D e sc r iptio n o f An ta m
Total Shareholder Returns 30 HOW WE MAKE OUR MONEY 104
Dividend Policy 31 OUR STRATEGY TO GROW 104
Investor Relations 32 OUR STRUCTURE 105
Investor Perception Survey 34 OUR PRODUCTS AND HOW WE MAKE THEM 105
Direct Feedback From You 35
OUR CUSTOMERS AND MARKET SHARE 108
Q&A with Our Largest Shareholder 36
OUR COMPETITORS 109
Dear Share h o l d e r OUR COUNTRY AND GOVERNMENT 110
LETTER from the board OF COMMISSIONERS 38 OUR INDUSTRY 110
COMMISSIONERS’ STATEMENT 41 swot analysis 112
LETTER FROM the BOARD OF DIRECTORS 42
Ris k M a n a g e m e nt
DIRECTORS’ STATEMENT 49
HOW WE MANAGE RISK 114
FAREWELL LETTER FROM CEO 50
Risk Statement 115
Antam’s Peo p l e
C o rp o r at e G o v e r n a nce o f An ta m
THE MANAGEMENT 52
Assessment of Antam’s Corporate Governance Report 118
Board of Commissioners’ Biographies 53
Statement on the Status of Corporate Governance
Board of Directors’ Biographies 55 120
Practices
Q&A WITH THE BOARD OF DIRECTORS 56 Reports from the Commissioner-Level Board
125
OUR HUMAN RESOURCES 58 Committees
Finan ci al Re v ie w: Hig h e r P r o fit s Adoption of the ASX Corporate Governance Principles
140
ABRIDGED FINANCIAL STATEMENTS 62 and Recommendations
Total Consolidated Assets 63 Adoption of the Indonesian Code of Good Corporate

143
Governance
Total Consolidated Liabilities 64
S u sta in a bil it y R ep o rt
Capital Structure and Access to Capital 65
STAKEHOLDERS’ Involvement 146
cash flows 66
Environmental Performance 146
hedging activities 67
Social Performance 147
R evi ew of Ope r atio n s :
Antam Funds a Local Craftsman 148
Generating Hi g h e r O u tp u t
Antam to Purchase Green Energy 149
DETAILED PRODUCTION AND SALES TABLE 70
Sales and Segment Information 71 a u diti n g a nta m
Production and Sales 71 SIGNED LETTER ATTESTING TO VERITY OF FINANCIAL
152
STATEMENTS
Cost of Sales 74
OPINION LETTER FROM Ernst & Young 153
Net Income 76
Cash Costs and Cost Reduction Program 77
CONSOLIDATED FINANCIAL STATEMENTS 154
Licensing 78 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 159
Performance Measurement and Outlook 78 C o n tact U s
key personnel and business units 197
Inves ti ng F o r A B ette r Fu tu r e
institutions and supporting professionals 198
OUR FUTURE TARGETS 80
glossary 199
ORGANIC GROWTH PROJECTS 81
corporate identity 202
alumina 81
IR CONTACT INFO AND CALENDAR 203
nickel 82
www.antam.com 2007 Antam Annual Report

The Investment Antam Shares Financial Review: Review of Operations: Investing Blue Sky: Existing Minority-
Case for Antam and Shareholders Dear Shareholder Antam’s People Higher Profits Generating Higher Output for a Better Future Stake Joint Ventures

Financial Highlights
Billion Rupiah
Description 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007/2006
%
Net Sales 1,021.91 966.15 1,566.15 1,735.22 1,711.40 2,138.81 2,858.54 3,251.24 5,629.40 12,008.20 113
Cost of Sales 450.75 547.73 860.28 1,122.93 1,280.48 1,471.91 1,497.70 1,827.14 2,887.94 4,794.96 66
Gross Profit 571.16 418.42 706.03 612.29 430.92 666.90 1,360.83 1,424.10 2,741.47 7,213.24 163
Earnings Before Interest, Tax,

Depreciation and Amortization 386.54 392.47 661.63 262.81 364.96 466.18 1,317.77 1,394.60 2,778.43 7,724.80 178
Income from Operations 475.33 318.02 537.28 126.29 247.42 447.98 1,096.57 1,099.77 2,403.69 6,796.09 183
Interest Expense 54.56 29.04 25.42 19.00 13.20 16.73 2.20 25.56 141.96 74,315 (48)
Net Income 299.36 234.34 383.16 118.91 177.40 226.55 810.25 841.94 1,552.78 5,132.12 231
Outstanding Shares (‘000) 1,230,769 1,230,769 1,230,769 1,230,769 1,907,692 1,907,692 1,907,692 1,907,692 1,907,692 9,538,460 400
Adjusted Net Income per Share (Rp)* 31.38 24.57 40.17 12.47 18.60 23.75 84.95 88.27 162.79 538.04 231
Adjusted Dividend per Share (Rp)* 13.40 9.44 20.09 6.23 6.88 7.72 29.62 30.01 65.12 - -
Total Assets 1,976.84 2,055.25 2,516.34 2,577.32 2,525.03 4,326.85 6,042.64 6,402.71 7,290.91 12,037.92 65
Total Liabilities 589.85 598.01 757.00 890.63 843.86 2,543.33 3,600.18 3,373.07 3,009.30 3,273.12 9
Total Long Term Debt 367.03 251.61 236.88 171.86 80.90 1,664.64 2,072.45 2,593.66 1,829.78 1,474.30 19
Total Stockholder’s Equity 1,376.35 1,447.65 1,750.31 1,680.48 1,675.48 1,783.51 2,442.47 3,029.64 4,281.60 8,763.58 105
Net Working Capital 472.13 452.50 763.04 874.30 827.99 2,100.12 2,064.93 1,308.11 2,138.09 6,249.28 192
*Calculations of Net Income per Share and Dividend per Share from 1998 to 2006 are adjusted using 2007’s post stock-split outstanding shares of 9,538,459,750.
Our performance for the last 10 years As our Net Sales CAGR exceeded our We pay generous dividends. The
has been consistent and robust. costs CAGR, we posted Net Income CAGR of our dividend payment per
The Compound Annual Growth Rate CAGR of 37% from 1998-2007. share increased by 49% from 1998
(CAGR) of Net Sales from 1998 to to 2006.
2007 is 31%, while Cost Sales CAGR
during the same period is 30%.

Exploration Detailed Corporate
and Reserves Description of Antam Risk Management Governance of Antam Sustainability Report Auditing Antam Contact Us

“We have consistently delivered industry-topping performance and growth.”
Description 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007/2006
%
Return on Average Investment 23.51% 19.94% 27.10% 5.70% 9.55% 11.17% 31.70% 32.33% 45.41% 81.99% 81
Return on Average Equity 23.95% 16.60% 23.96% 6.93% 10.57% 13.10% 38.35% 30.77% 42.48% 78.69% 85
Return on Average Assets 16.73% 11.62% 16.76% 4.67% 6.95% 6.61% 15.63% 13.53% 22.68% 53.11% 134
Current Ratio 298.58% 254.96% 253.93% 292.69% 293.09% 568.03% 326.33% 267.83% 281.27% 447.41% 59
Total Liabilities to Equity 42.86% 41.31% 43.25% 53.00% 50.37% 142.60% 147.40% 111.34% 70.28% 37.35% (47)
Total Liabilities to Assets 30.17% 29.10% 30.08% 34.56% 33.42% 58.78% 59.58% 52.68% 41.47% 27.19% (34)
Gross Margin 55.89% 43.31% 45.08% 35.29% 25.18% 31.18% 47.61% 43.80% 48.70% 60.07% 23
Operating Margin 46.51% 32.92% 34.30% 7.28% 14.46% 20.95% 38.36% 33.83% 42.70% 56.60% 33
Net Margin 29.29% 24.26% 24.46% 6.85% 10.37% 10.59% 28.34% 25.90% 27.58% 42.74% 55
Operating Cashflow 539.65 218.86 825.48 385.51 250.16 481.18 768.95 742.34 1,711.30 4,835.91 180
Capital Expenditure 398.61 142.57 98.82 90.11 103.30 635.99 1,364.36 1,436.16 85.61 197.16 130
Free Cashflow 141.04 76.29 726.66 295.41 146.86 (154.80) (595.41) (693.82) 1,625.69 4,638.74 189
Exchange Rate (Rp/US$)** 10,224 7,848 8,405 10,256 9,316 8,570 8,935 9,712 9,167 9,136 0
Gold Price (US$/t.oz)** 294.26 278.87 279.18 271.35 310.57 364.06 409.87 446.14 604.65 697.09 15
Nickel Price (US$/Lb)** 2.09 2.74 3.92 2.71 3.08 4.37 6.27 6.45 10.96 16.85 54
**Annual Average of Daily Spot Price.
In line with our consistent performance, Our Total Liabilities to Assets jumped Our free cash flow turned negative in
we posted Return on Average Equity significantly in 2003 due to the 2003 as we constructed FeNi III, our
CAGR of 14% from 1998 to 2007. bond issuance to finance FeNi III. latest expansion mode. In 2006, our
In 2005 we started to buy back the free cash flow turned positive again as
bonds in the open market. In 2006, FeNi III construction came to an end.
we fully redeemed the bond before
maturity due to the cancellation of
Indonesia-Mauritius Avoidance of
Double Taxation Agreement.


RETURN ON AVERAGE OPERATING CASH FLOW DEBT TO EQUITY

EQUITY 79 (Billion Rupiah) (%)
(%)
4,835 93
85
42 65
38
31
1,690 31
13
769 742 10
481
03 04 05 06 07 03 04 05 06 07 03 04 05 06 07
The main measurement of value The operations were producing A supreme performance achieved
creation, our 2007 ROE beat most substantial free cash and prepared with little to no debt.
other peers. Antam for the next phase of growth.
EARNINGS BEFORE INTEREST, REVENUE PER SEGMENT OPERATING INCOME

TAX, DEPRECIATION (Billion Rupiah) PER SEGMENT
AND AMORTIZATION 303
(Billion Rupiah)
6,968
(Billion Rupiah)
158
1,163
10,687
205 188
7,725 2,524
690
4,734
190
166 169 80
589 1,221
112 526 1,118
2,778 2,472
554 2,167
1,318 1,395 154
1,473
415
466
-25 -10 -12 -21 -102
03 04 05 06 07 03 04 05 06 07 03 04 05 06 07
Nickel Gold Others Nickel Gold Others
Antam’s EBITDA soared as cash Higher prices and higher volumes caused revenue from Nickel is the main income earner. Never seen before
gushed from the operations. nickel to soar. nickel prices caused income to reach new heights.


Why We Do What We Do:

Our Mission and Vision
Vision 2010
To be a mining company of international
standards with a competitive advantage
in the global market.
Mission
• To provide high quality products of nickel,
gold and industrial minerals with the utmost
concern for work safety and health as well
as environmental conservation.
• To operate in the most efficient manner (low
cost operations).
• To maximize shareholder and stakeholder
value.
• To enhance employees’ welfare.
• To participate in efforts to improve the social
welfare of communities in the vicinity of the
mining areas.


Who We Are:
Antam Described
We are a diversified, Indonesian, state-owned, vertically integrated, mining and metals company. Our DIVERSE PRODUCT MIX
main strengths are our low cost operations, our vast high quality reserves of nickel and bauxite, our
strong financial structure, our nearly forty years of experience, our location in mineral-rich Indonesia, 1%
9%
our vast acreage of licensed exploration territories, and our loyal and dedicated staff. Our main
1%
commodities are nickel, gold and bauxite. With a recent nickel expansion and due to price increases,
most of our revenues are now related to nickel. Our main goal is to create shareholder value by getting
bigger and better and doing it in a sustainable and correct way. Our main strategy is to extract as much
value as possible from our existing reserves by moving downstream from exporting ore into processing 41% 48%
activities. We are also keen to diversify away into other commodities as long as there is a good return
and a match with our business. In general we are only interested in Indonesian assets as the returns
are higher and we can benefit from our domestic knowledge and experience.
We currently produce and export around 5.5 – 7 million wet metric tons of nickel ore, around 17,000
– 18,000 tonnes of nickel contained in ferronickel, 100,000 – 115,000 troy ounces of gold, 700,000 Ferronickel
– 800,000 ounces of silver and 1.2 – 1.5 million wmt of bauxite. As our strategy is implemented in Nickel Ore
the upcoming years we expect to see ore exports come to a halt, with our ferronickel production Gold
increasing and the commencement of alumina production, which uses bauxite as ore feed. In
Bauxite
general we have amongst the lowest operating costs in the business, except for our ferronickel
operations. Ferronickel costs have come up due to the removal of national fuel subsidies and rising Silver
international prices. However, we will convert to a lower cost fuel and regain our low cost position.
Our customers are mostly long term and bluechip international companies, located in North Asia Our upcoming investments will diversify our
and Europe. About half of our gold and silver is sold domestically. revenue away from the current dominance
of nickel.
We are financially prudent and like to have very little debt and large cash holdings. Only when the time
is right will we leverage the balance sheet to invest and grow.
We are 65% held by the Indonesian government, with the other 35% held by the public. Most of the
public investors are long term large, foreign institutional investors. Although recently the amount of
domestic institutional, as well as retail investors, has been increasing.
EXPORT ORIENTED*
Rp5,793billion
Europe Taiwan
Korea India
Japan
Ferronickel
Rp125billion Rp4,769billion
Sa
te
China Japan
i
Eastern Europe
p ro l i
Limon
te
old xi
te
Bau
G
Rp1,034billion Rp130billion
Singapore
Indonesia Jewelers
Japan
China *The graphic depicts sales revenues by
product and destination


1 2
Nickel is a metallic element which is sold in many forms such as cathode, granules, shots and ingots. About 85% of metallic
nickel is used in combination with other metals to make what are known as alloys. Nickel-containing alloys are highly regarded
for their superior combinations of toughness, strength, and corrosion resistance, and their ability to retain these properties at
extremes of temperature. About 65% of nickel is used to make stainless steel which is the ideal base material for commercial
applications. Stainless steel is used in cutlery, industrial equipment, structural alloys in automotive and aerospace assembly
and building material in skyscrapers and other large buildings.
Gold is a precious metal which, for many centuries, has been used as money, as a store of value and in jewelry. Modern
industrial uses of gold include dentistry and electronics.
Reference: Wikipedia
4 4 5
1. Jet engines rely on the sturdiness and
non corrosive characteristics of nickel
plated stainless steel material.
2. The Chrysler Building was made using

316L stainless steel and is a testament
to the anti-corrosive properties of high
quality 300 series stainless steel.
3. The second most important usage of

nickel is batteries, a key growth area.
4. Antam’s .9999 fine gold is internationally

accredited.
5. The heat resistant nature of nickel protects

and strengthens the engine block.

10
An Amazing Year
By all accounts 2007 was an amazing year. Due to a substantial
increase in our output of nickel contained in ferronickel (despite a leak
at FeNi III smelter) and almost doubling our nickel ore exports in
combination with record breaking nickel prices, we produced more
cash, made more profit, created the largest margins, than we ever have
before. We will look back at 2007 as the year that laid the foundation
for the next expansion. As well as increasing profits, 2007 was also an
amazing year in terms of breaking into the Chinese nickel ore market
and in terms of forging new alliances and partnerships with China.
We signed many agreements, some of which we acknowledge will
come to nothing, but offer the best way to ensure we are finding the
best partners and executing the best development plans for our large
reserves and resources.
While we do not expect 2008 will be as profitable as 2007, it will be

equally as important in terms of executing our growth plans and make
important investments to grow, such that in three to five years time
the profit levels of 2007 will not be considered amazing, they will be
considered normal. We generated amazing returns in 2007 so we can
build a better future for tomorrow.
Production and Sales

Unit 2006 2007 2007/2006 (%)
Production Volume
Ferronickel metric ton Ni 14,474 18,532 28

Saprolite Nickel Ore wmt 3,493,961 6,744,383 93
Gold kg 2,873 2,791 (3)
t.oz 92,367 89,733 (3)
Sales Volume
Ferronickel metric ton Ni 13,389 17,723 32

Saprolite Nickel Ore wmt 3,375,466 6,463,977 91
Gold kg 1,458 5,000 157 Soaring Chinese nickel demand pushed
Antam’s nickel ore sales up by 91% year
t.oz 46,876 160,754 157
on year.

11
of Growth
REVENUES AND PROFITS soar

REVENUES AND PROFITS HIGHLIGHT
12,000
12,008
11,500
11,000
10,500
10,000
9,500
9,000
8,500
8,000
7,500
7,000
Rp Billion
6,500
6,000
5,500
5,000
5,132
4,795
4,500
4,000
3,500
3,000
2,500
2,000
1,500
Net Sales
1,000
Cost of Sales
500
0
Net Income
2003 2004 2005 2006 2007

12
Outperforming
Our Peers
Often we are unfairly assumed to be an underperformer. Perhaps
this is due to the sometimes poor image of Indonesian state-owned
enterprises as being sluggish, lacking competence and perhaps
corrupt. As well, the ramp up of our FeNi III smelter has experienced a
couple of setbacks with a leak in 2006 and a leak in 2007. Every new
furnace leaks, and ramp ups to optimal capacity will take many years,
but the expectations were high and many assumed FeNi III would
quickly reach full capacity. As well, as we find the best partners and
plans for developing our vast reserves into the most value creating
operations, we have signed many agreements, some of which expired,
leaving some to suggest all we do is sign non-binding agreements
and we need to speed up our development projects.
Some have said our excellent profit growth over the past couple of
years is simply due to the unexpectedly high nickel prices; that we
had gotten lucky.
The reality is that over the past number of years, well before the
commodity boom began and during the construction period of
FeNi III, we have consistently outperformed our peers, who also
were beneficiaries of high commodity prices. The numbers, as you
can see below, speak for themselves. Our plan is to continue to
deliver industry beating performance.
Key Ratios Top 40 Global Indonesian Antam

Companies Mining
Companies
2005 2006 2005 2006 2005 2006 2007
Ebitda Margin 37% 44% 43% 41% 41% 49% 64%
Net Profit Margin 23% 27% 23% 23% 26% 28% 43%
Return on Equity* 26% 33% 37% 39% 31% 42% 79%
Debt to Equity 32% 36% 49% 47% 40% 31% 10%
*Antam calculates RoE as net income divided by the average equity, whereas PwC may use equity at the end of the period.
Source: PricewaterhouseCoopers, Antam
Key Ratios Australian Miners Indonesian Antam

Miners
Average 10 years Average 10 years Average 10 years
(1997-2006) (1997-2006) (1997-2006)
Ebitda Margin NA 39% 35%
Net Profit Margin 12% 16% 20%
Return on Equity* 12% 19% 22%
Debt to Equity NA 115% 37%

13
Delivering Significant
Shareholder Returns
What it all boils down to for most investors is the shareprice and dividend performance of their
different investments, something that is reflected in the calculation of total shareholder returns.
We had a record year in terms of generating total shareholder returns, which increased to 180%
or Rp2,920.12. Our shareprice rose 176% to end the year at Rp4,475. This compares with total
shareholder returns of 126% or Rp910.01 in 2006. As in the preceding two years, our share price
outperformed the Indonesian Stock Exchange, every major international index and all major mining
indices.
As in every year since listing on the Indonesian Stock Exchange in 1997, we returned value to
our shareholders by way of a generous cash dividend. We paid a cash dividend in the amount of
Rp621 billion, or 40% of our net profits after tax for the year ended December 31st, 2006.
5 Year Quarterly Share Price and Trading Volume
Share Price Volume

Rp Rp million
5,000 9,000
4,500 8,000
4,000 7,000
3,500
6,000
3,000
5,000
2,500
4,000
2,000
3,000
1,500
2,000
1,000
1,000
Trading Volume
500
0 0 Share Price
2003 2004 2005 2006 2007 2008
PER SHARE DATA
2006 2007 Change %
Earnings Per Share* 162.79 538.08 231
Dividend Per Share* 65.116 To be decided in AGM -

EPS hiked more than double in line with
robust production and sales as well as a Average Price Earning Ratio 11.7 9.0 -23
strong commodity market.
*Retroactive effect after stock split.
SOME OF OUR ANALYSTS: Analyst and Media Coverage (2006 in parenthesis)

Adam Worthington Macquarie
Reports Analysts Press ASX Bloomberg Bloomberg
Daisy Suryo Merrill Lynch
Releases Fillings Articles Terminal
Andreas Bokkenheuser UBS
“Entries”
Cherie Khoeng Deutsche Bank
Ahmad Solihin CLSA
Buy Hold Sell 19(20) 23(16) 61(43) 275(229) 577(541)
Isnaputra Iskandar Danareksa 35(27) 15(33) 15(17)
Jerome Jovellana Mandiri
Achmad Syafriel Bahana
Stefanus Darmagiri UOB
Yusuf Ade Winoto DBS
Ricardo Silaen Kim Eng Major Shareholder:
Shares in Issue 9,538,459,750
David Fergusson Citigroup Government of Indonesia (65%)
Ami Tantri JP Morgan Market Capitalization Rp42.7tn Substantial Shareholders:
Haider Ali Credit Suisse (US$4.54 billion) MS + Co Inc CA (3%)
Rania Rahmundita CIMB Share Price Range Rp1,400-5,050
Christine Salim Samuel Final Dividend Payment Date:
Norico Gaman BNI Average Share Price Rp2,742 July 6th, 2007
Felix Sindhunata Mega Capital Trading Volume 21.17 billion Final Dividend Amount:
Adrian Rusmana HD Capital Rp325.58/share (Rp65.116/share after stock split)
Triwira Juniarta NISP Average Daily Volume 86 million
A$0.215428/CDI (A$0.0430856/CDI after stock split)

14
2007: A Great Year
February 5th February 12th

Antam sends aids to Over twenty companies
January 29th February 23rd
flood victims in Jakarta. participate and there
FeNi III commercial Antam and BHP Billiton
are 3 winners. Antam
operations begins. establish alliance to develop
holds tender to sell 2
million wmt of nickel ore Halmahera nickel deposit.
to China.
March 12th June 5th

Antam and partners form May 30th Antam raises saprolite June 18th
joint venture company for Antam pays cash nickel ore reserves and Antam lowers power
the Tayan chemical grade dividend of Rp621 billion resources by 61% to load of FeNi III smelter
alumina project. or Rp65.116 per share 180 million wmt. due to small metal leak.
(adjusted for stock split).
Share Price Rp
5,000
4,000
1
2 3
3,000 4
2,000
1,000
0
Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul

15
July 12th August 1st

Antam stock split at a Mining activities at
ratio of 5:1. Pongkor gold mine August 26th September 6th
continue to run at Antam switches on FeNi Antam and UC Rusal sign
normal level after III smelter following the a heads of agreement to
mining accident. completion of partial develop bauxite deposit in
repairs. Indonesia.
September 11th September 21th September 21st

Antam appoints Antam to lower its nickel Antam sends aids to
Macquarie as financial October 31st
power cost by up to 8- earthquake victims in
advisor to advise and Antam signs an agreement
10% through the use of Bengkulu and West
assist in relation to with Tsingshan of China to
15MW low impact hydro Sumatera.
Antam’s project pipeline conduct a feasibility study
power plant.
as well as in relation to of jointly developing a
acquisition advisory. stainless steel facility.
MOST READ BLOOMBERG NEWS

1 June 4, Antam Studies Plan to Triple Nickel Output by 2012
2 June 5, Indonesia May Take Back Parts of Coal, Metal Areas

3 June 19, Aneka Tambang Smelter Has Second Leak; Keeps Target
Volume
4 June 21, Indonesia May Change Mining Law to Suit Investors Rp million
5 July 17, Indonesia Rules Out Ore Export Ban, Consider Taxes
1,200
1,000
800
5
600
400
200
0
07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08

16
Our Strategy:
How We’re Growing Value
Our strategy is as effective as it is simple. We will create maximum
shareholder value by continuing to diversify horizontally into other
commodities where suitable, while also continuing to focus on
those commodities we know best, which are nickel, gold and
bauxite. We will diversify through an active exploration program
and through strategic acquisitions.
We will also maintain a diversity of customers so as to not be overly reliant on any one market.
We will also continue to diversify vertically by moving downstream in order to increase the value-
added of our operations. While some of the bigger international mining companies have claimed
they will now start to move upstream, they are moving from now lower margin refining back into
smelting, or from packaging to refining. We are moving downstream to the first level of processing
where the increased value is substantial. Later on, if it makes good business sense, we will move
further downstream, such as from ferronickel to stainless steel. We have focused on nickel, gold
and bauxite in the past and this has proven to be a winning combination. Our results in 2007 are
largely due to the increased value that came from moving more downstream by building additional
ferronickel capacity.
We will focus on mines and deposits in Indonesia as not only do we benefit from our knowledge
of Indonesia, but the industry in general has higher returns than elsewhere. However we will
actively seek international partnerships with world class mining companies to best develop our
vast reserves in the most efficient, profitable and correct way. We will engage the rise of China and
increasingly India by seeking to form partnerships with Chinese companies, viewing China as an
opportunity not a threat.
We will continue to be a low cost operator and holder of large reserves and resources and continually
strive to improve in these areas. We will also continue to not overly burden our balance sheet and
take a prudent approach to making investments, which must generate a return of at least 15%.
Cash Cost, Production Cost and Average Selling Price

Unit 2006 2007 2007/2006(%)
Cash Cost
Ferronickel US$/lb 4.40 5.55 26
Saprolite Nickel Ore US$/wmt 20.15 20.32 1
Gold US$/t.oz 283.93 383.10 35
Production Cost
Gold US$/t.oz 375.36 481.74 28
Average Selling Price
Gold US$/t.oz 611.59 702.63 15 Our ferronickel cash cost rose due to
higher ore feed costs and higher fuel
prices. We will lower costs by converting
to a lower cost fuel.

17
What it All Boils Down to:

Our Reserves
Without reserves, a mining company is nothing. Unlike other businesses, the life of a mining
company can be very easily determined, based solely on the size and quality of its reserves.
Our reserves are the basis of our strategy. All the other strategies stem from the decisions we
make about how we can create the most value from our existing large reserves and resources.
The reserves of our gold, one of our three core commodities, are dwindling and so we are actively
seeking to discover or acquire more gold. Without having good knowledge of your reserves,
subsequent planning will be misguided. For this reason, and also to fulfill a listing requirement of
the ASX, every year we estimate our reserves according to the JORC Code, which is determined
by the Australasian Institute of Mining and Metallurgy.
Mineral Resources and Ore Reserves (‘000 wmt)*
Commodity Quantity Change (%)
2006 2007
Saprolite Nickel 179,850 180,900 1
Limonite Nickel 185,150 214,200 16
Gold 3,863 3,973 3
Bauxite 84,400 81,600 (3)
Proved and Probable Reserves (‘000 wmt)*
2006 2007
Saprolite Nickel 63,900 55,100 (14)
Limonite Nickel 51,450 50,150 (3)

The 14% decrease of nickel reserves is
largely due to production. The 13% decrease Gold 2,882 3,026 5
of bauxite reserves is due to a portion being
reclassified as indicated resources. Bauxite 84,400 73,100 (13)
*Based on the Competent Person’s report. Figures as per December 31, 2007 (inferred resources were included in gold estimation).
Please see detailed tables in the Exploration and Reserves section.

18
A Well Governed
State-Owned Enterprise
We take corporate governance extremely seriously.

Firstly, because we believe good corporate
governance is a good business decision. Especially
for a mining company in Indonesia, behaving in a
clear, consistent, fair, accountable, responsible way
will yield the highest and most durable profits. As well,
important aspects of the business, such as raising
capital, to finding partners, to securing favourable
terms with our suppliers can all benefit from being a
well governed company.
Secondly, it’s simply about operating ethically; about doing the right thing, about making good
profits, but also about giving back to the communities we operate, in ways other than just
generating economic development. We want to be a partner with the communities we are in and
work together with them for the best possible outcomes.

19
External Recognition and

Certification
Annual Report Award 2006
• Ranked 1st Overall
• Ranked 1st SOE Non Finance Category
League of American Communication Professionals (LACP) 2006

Vision Awards Annual Report Competition
• Platinum Winner (Materials Category)
• Gold Winner (Best In-House Report Category)
• Ranked 11th from over 2,500 international entries
Asia’s Best Companies 2007 – FinanceAsia
• Best Managed Company (rank 6th)
• Best Corporate Governance (rank 5th)
• Best Investor Relations (rank 2nd)
• Most Committed to a Strong Dividend Policy (rank 6th)
Ranked in the 50 Top Reports from around the world as compiled in the Annual
Report on Annual Reports, the international contest run by Europe’s E.Com, the
only Indonesian firm to do so.
The Best Corporate Governance Practices in the Small/Mid Cap Category in Asia/
Pacific by Technical Criteria - IR Global Rankings
Top Performing Listed Company – Investor Award 2007
Overall Third Best Company in Indonesia – Corporate Governance Poll 2006 –

Asiamoney
Gold Medal in 2007 International Conference on Quality Control Circles, Beijing.

20
Exciting Projects
Organic Growth Projects
Project Product Location
PT Indonesia Chemical Alumina Chemical Grade Alumina Tayan, West Kalimantan
SGA Bintan Project Smelter Grade Alumina Bintan Island, Riau

SGA Mempawah Project Smelter Grade Alumina Mempawah, West Kalimantan
SGA Munggu Pasir Project Smelter Grade Alumina Munggu Pasir, West Kalimantan
Mandiodo NCPI Project Phase 1: NCPI Mandiodo, Southeast Sulawesi

Phase 2: Stainless Steel
Obi NCPI Project Phase 1: NCPI Obi Island, North Maluku
Phase 2: Stainless Steel
Krakatau Iron Project Sponge Iron South Kalimantan
Pearl Nickel Project 1) Ferronickel Halmahera Island, North Maluku
2) Nickel Cobalt
• Note: this table is for illustrative purposes only as the feasibility studies are still being conducted for many of these projects and as such
many aspects were not final
• NCPI = Nickel Contained in Pig Iron
• EPC = Engineering Procurement and Construction
• BFS = Bankable Feasibility Study
• JVA = Joint Venture Agreement
• TPA = Tons per annum
With large cash reserves following a recent expansion of our nickel volumes and thanks to a strong nickel price, we are ready to make
new investments for our next phase of growth. With average annual nickel prices likely softening in the next couple of years and with
little production growth if any in 2008, we feel it is imperative for our shareholders to also look carefully at our growth in the next three to
five years.
With large reserves of nickel and bauxite we are investing, often together with experienced international partners, for a better future. This
means moving downstream to create more value from our reserves. We want to squeeze as much value as possible from our reserves,
which means careful planning and execution. Currently we have smelter and chemical grade alumina projects building on our bauxite
reserves, with Chinese, Japanese, Russian and European mining and metal companies. We have a massive nickel project with BHP
Billiton, which will likely use both phyrometallurgy and more advanced hydrometallurgy, to best process our largest nickel deposit, at Buli,
North Maluku. We have two Nickel Contained in Pig Iron projects, with Tsingshan and Jindal which would use simple blast furnaces to
process our low grade nickel ore into NCPI and then if feasible, move further downstream into stainless steel. We have a sponge iron
project with PT Krakatau Steel. We will also invest in cost reduction, to convert from high cost diesel, to either coal, hydro or natural gas,
and create a substantial cash cost reduction.
On the acquisition side, we are looking to acquire gold assets in Indonesia to replenish our dwindling gold reserves and as part of the
strategy to maintain diversity, we have made a joint takeover bid for Herald Resources Ltd of Australia, which owns 80% of a lead/zinc
project called PT Dairi Prima Mineral.
This table shows a summary of some of our exciting projects. More details are provided inside in our “Investing for a Better
Future” chapter.

21
Volume Status Operational Year

300,000 tpa - ICA formed in March 2007 2010 or 2011
- Updating BFS, EPC selection and financing
400,000 – 600,000 tpa Not Feasible Terminated
1.0 million tpa - JVA negotiations, Feasibility studies 2011
1.2 million tpa - Agreement signed in September 2007 –
- JVA negotiations, Feasibility studies
_ - JVA negotiations, Feasibility studies 2010
7,500 tpa of Nickel - Agreement signed in October 2007 2012

Contained in Pig Iron - JVA negotiations, Feasibility studies
300,000 tpa - JVA negotiations, Feasibility studies 2010
1) 30,000 tpa - 50,000 tpa of FeNi - Agreement signed in February 2007 1) 2012
2) 60,000 tpa of nickel cobalt - JVA negotiations, Feasibility studies 2) BFS by 2012
Acquisitive Growth Projects

Company Product Project Name/ Volume Status
Location
Herald Resources Ltd Lead/Zinc PT Dairi Prima At full rate: As of April
Mineral, North 1m tonnes of 2008,
Sumatra throughput for 7 takeover
years (320,000 bid was in
tonnes of process
concentrate and,
175,000 tonnes of
metal)
Various Targets Gold Various, Indonesia – Identify target
in 2008
PT Borneo Edo Bauxite West Kalimantan – –
International
PT Mega Citra Utama Bauxite West Kalimantan – –

22
Our Risks and

Challenges
The mining business is inherently risky. This is even more so when operating in a country like
Indonesia which is going through many fundamental economic and political changes. Risks that
we are constantly aware of include price volatility of our main products, higher international oil
prices, currency rate fluctuations, operational disruptions and regulatory risks associated with
licensing and permits as well as the revision of the mining law.
The mining business also has many challenges. It is a capital intensive, slow yielding business
and many different moving parts must be controlled to make a viable mining and metals project
come to profitable operation. One of our main challenges right now is regaining our position as a
low cost producer of ferronickel. Although we produce our other products at low cost, because of
the removal of national fuel subsidies we have seen the cash cost of ferronickel climb consistently
higher. As at the end of 2007, we were still in the top quarter of the industry cost curve. We therefore
plan to soon convert to a lower cost fuel, such as coal, hydro or natural gas.
ANTAM’S PRODUCTION COSTS

2006 (%)* 2007 (%)*
Materials 19 27
Ore Mining 15 17
Fuel 17 12
Labor 14 9
Depreciation 14 9
Royalty 4 5 Materials were the largest cost component
inline with higher nickel output and increased
*Of total production costs ore feed costs.
2007 NICKEL INDUSTRY COST CURVE (2007$)
14.0
12.0
PT Aneka - Pomalaa
10.0
8.0
C1 Cash Cost ($/lb Ni)
6.0
4.0
2.0
0.0
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000
-2.0
-4.0
-6.0
Copyright Brook Hunt 2008
Production (kt Ni)

23
The Outlook
ALERT!d
INVESTOR wth an t
d of gro o We are often asked about specific targets we are aiming for
After a
perio while n
2008,
o ll e ction, venue
cash c
t in te
re
rms of portant in the next one, three or five years. In general, we can say in
grea e an im
, will b
growth for investing
in
our pursuit of creating maximum shareholder value, we are
year lo n g term
ant
signific
growth
constantly striving to become bigger, better, more diversified
and sustainable. We feel it is slightly reckless to give anything
more than our volume targets beyond the year ahead. We make
forecasts for commodities and fuel prices. Therefore, while we
forecast expected revenues, profits and margins for the year
ahead, we do not have specific targets. We take this approach
as the mining business is a complicated one, with many moving
and sometimes uncontrollable parts.
LME Price (US $/lb)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
13.20 10.96 7.50 4.75 4.35 5.00 5.80 8.00 7.50 8.20 8.80 9.50
Source: Brook Hunt
Production Volume Targets

Product 2007 Actual 2007 Target 2008 Target % Change
Nickel contained in 18,532 tonnes 20,000 tonnes 17,000 tonnes - 8%
Ferronickel
Nickel Ore 7,112,870 wmt 5.5 – 5.8 million wmt 5.8 million wmt - 18%
Gold 2,791 kg 3,000 kg 2,980 kg + 7%
Bauxite 1,251,247 wmt 1.5 million wmt 1.5 million wmt +20%
Bloomberg Consensus Estimates

(in Rupiah unless otherwise noted)
2008: The Year To Date
12/2008 12/2009
• January 29th - We announce our AUD$2.50 joint takeover bid with Zhongjin, for Australian miner,
EPS 399.032 308.681
Herald Resources Ltd (HER).
Cash Flow Per 444.684 436.702 • January 31st – We announce that the Ministry of SOEs, as well as the management of HER,
Share
support our takeover bid for HER.
Dividends Per 189.693 140.060 • February 14th – We clarify rumours that we were going to buy a minority stake in PT Freeport
Share
Indonesia. The Minister of SOEs had only commented he supported our buying into PTFI.
Sales 9.4 trillion 8.4 trillion • March 7th – We lodge the Bidders Statement related to the HER takeover.
Net Income 3.8 trillion 3.2 trillion
Return on Equity 42% 30%
Net Debt - 5.8 trillion - 7.9 trillion
Price/EPS 7.7 10
Price/Cash Flow 6.9 7.0
Dividend Yield 6.2 4.6
Source: Bloomberg, as at April 8, 2008, based on

number of estimate ranging from 11 to 16.

24
Head Office and Geology Unit

Gold
Nickel
Iron Sands
Bauxite
Diamond and Base Metal
14 Malaysia
MARTABE
(Gold Deposit owned
by Oxiana that Antam
I N D O N
considered investing in)
1
11
7
5
1
2 6
D
8
E
15
6
7
10
2 3
F
4
BATU HIJAU
(Newmont-owned mine
that Antam considered
investing in)
HEAD OFFICE GOLD AND REFINING BAUXITE AND IRON SANDS

Assets Rp5,618 billion Assets Rp707 billion Assets Rp212 billion
Sales - Sales Rp1,163 billion Sales Rp158 billion
Employees 282 Employees 740 Employees 175

25
Operations (100% Antam) Antam’s Projects

Type Location Strategic or Majority Stake Development Projects
1 Bauxite Mine Kijang 1 Tayan Chemical Grade Alumina (CGA) Antam 49%
2 Gold Factory Cikotok 2 SGA Munggu Pasir Antam 49%
3 Gold Mine Cikidang 3 Pearl Project (FeNi IV and Hydromet) Antam 50%
4 Irons Sands Mine Kutoarjo 4 Tsingshan Nickel and Stainless Project Antam 60%
5 Irons Sands Mine Lumajang 5 PT Borneo Edo International Antam 60%
6 Precious Metal Refinery Jakarta 6 PT Mega Citra Utama Antam 80%
7 Gold Mine and Factory Pongkor 7 SGA Mempawah Antam 55%
8 Nickel Mine and Smelters Pomalaa 8 Sponge Iron with Krakatau Steel Antam 34%
9 Nickel Mines Tanjung Buli, Mornopo, Gee
Certain Minority Stake Joint Venture Projects

9 PT Nusa Halmahera Minerals* Antam 17.5%
10 PT Cibaliung Sumberdaya Antam 10.25%
11 PT Sorikmas Mining Antam 25%
12 PT Gag Nickel Antam 10%
E S I A 13 PT Weda Bay Nickel

14 PT Dairi Prima Mineral
Antam 10%
Antam 20%
15 PT Galuh Cempaka* Antam 20%
5
*currently operational
9 C
3
13
SONORO
(Gas field owned by
Medco) 1.200 Km
POSO LAKE
(Potential Hydro 4
Power Plant) 12
B
450 Km
A
8
POMALAA TIMUR
(PT Inco-owned
property and Antam
source of 1 million GRASBERG
SENGKANG wmt of nickel ore
per year) (PT Freeport Indonesia
(Gas field owned by
owned mine that Antam
Energy Equity Epic considered investing in)
(Sengkang))
Antam’s Promising Exploration Areas

Prospect Location
A Nickel Bahubulu, Tapunopaka, Mandiodo
B Nickel Morowali
C Nickel Buli, Gee
NICKEL AND REFINING D Gold Gunung Patah Tiga
E Gold Seblat
Assets Rp5,501 billion
Sales Rp10,687 billion F Gold Papandayan
Employees 1,504 Note : Antam had other active exploration areas not
indicated on this map.

26

27
Antam Shares and

Shareholders
Market Overview
28
Shareholders Information
28
Total Shareholder Returns

30
Dividend Policy
31
Investor Relations
32
Investor Perception Survey

34
Direct Feedback from You

35
Q&A with Our Largest Shareholder

36

28
Market Overview
The year 2007 was a strong yet volatile year for participants in the global capital markets driven
by continuing and seemingly unstoppable growth of China, ever higher commodity prices and
a fast acting, accommodating Federal Reserve, combined with rising oil prices increasingly
global fears over the subprime mortgage crisis in US, the subsequent credit crisis and fears
of recession in the West. Although turbulent, most bourses around the world performed well,
especially in emerging markets.
The Indonesian Stock Exchange (IDX) also posted a significant increase of 52% to 2,746, only
beaten by China’s bourses and was the region’s third best performer. The IDX had a market
capitalization of Rp1,995 trillion with an average daily value to Rp4.3 trillion in 2007. The top three
sector performances were mining, agriculture and property. One important factor in the strong
performance of the IDX, and a new phenomenon in 2007, was the huge increase in domestic
institutional and domestic retail investors. Local investors caused daily trading volumes to soar,
significantly improving liquidity and higher valuations.
Antam’s Shares
Since 1997, Antam’s shares have traded on the Indonesian Stock Exchange (IDX - formed by the
merger of the Jakarta Stock Exchange and Surabaya Stock Exchange in 2007). Besides a Main
Board member, the company is also a member of the Jakarta Mining Index, LQ 45 (45 most liquid
shares of the exchange) and the Jakarta Islamic Index.
Antam is also listed on the Australian Securities Exchange (ASX - resulting from the merger of the
Australian Stock Exchange and the Sydney Futures Exchange in December 2006). Antam’s shares
were listed with exemptions on the ASX in 1999 and the listing was augmented to a full ASX Listing
in 2002. The purpose of Antam’s listing is to subject the company to more stringent standards of
transparency and disclosure, in particular for reporting the annual estimation of mineral resources.
Antam’s securities are traded as Chess Depository Interests (CDI) where one CDI represents five
underlying common shares, with each fully convertible into the other. In 2007, 120,250 CDIs were
traded with modest trading activities.
Corporate Action: Stock Split

At an Extraordinary General Meeting on May 30th, 2007, Antam’s shareholders approved
management’s proposal of a stock split at ratio of 1 share with a nominal value of Rp500.00 per
share to 5 new shares with a nominal value of Rp100.00 per share.
The purpose of the stock split was as follows:

1. to increase trading liquidity.
2. to improve distribution of share ownership by creating a less expensive unit price that is more
appealing to small and retail domestic investors.
3. to help create market capitalization growth.
Share Chronology Overview

Description Number of preferred Number of common stocks Number of Total Shares
stocks (A Series) (B Series) common stocks
(B Series)
The Government of RI The Government of RI Public
Nominal Value Rp500 per share
1. Initial Public Offering (IPO) in 1997 1 799,999,999 430,769,000 1,230,769,000
2. Bonus Shares* in 2002 1 1,239,999,999 667,691,950 1,907,691,950
Nominal Value Rp100 per share
3. Stock split** in 2007 1 6,199,999,999 3,338,459,750 9,538,459,750
* During Extraordinary General Meeting of Shareholders on June 19,2002 it was resolved to issue a bonus share from the capitalization
of additional paid-in capital using a ratio wherby ownership of 100 shares warrants receipt of 55 new shares. On July 30, 2002, Antam
approved the issuance of 676,922,950 new B Series in the amount of Rp338 billion from 1997 IPO.
** The Extraordinary General Meeting of Shareholders on May 30, 2007 approved of the split of nominal value of stock split at ratio 1 share
with nominal value of Rp500.00 per share to 5 new shares with nominal value of Rp100.00. As result of stock split, total of issued and fully
paid capital was 1 preferred stock (Dwiwarna) owned by The Government of Indonesia and 9,538,459,749 ordinary (common) stocks.

29
SHARE OWNERSHIP SUBSTANTIAL SHAREHOLDERS AS PER DECEMBER 31, 2007
No. Shareholders Shares %

1 Government of the Republic of Indonesia 6,200,000,000 65.00
2 Ms + CO INC Ca 244,212,136 2.56
3 Jpmorgan Chase Bank Na Re Norbax Inc 219,222,500 2.30
4 Investor Bank and Trust Company (West) 157,556,000 1.65
35 % 2007 65 % 5 The Northern Trust S/a Avfc 97,197,000 1.02
%
6 Pt Jamsostek (Persero) - Jht 61,000,000 0.64
7 Pertamina Pension Fund 58,173,125 0.61
8 Ssb 2d09 Ssga Emerging Markets Fund-2144 43,707,500 0.46
9 Liu Siauw Kie 40,500,000 0.42
Government 10 Pt Taspen 40,387,500 0.42

11 Rennier Latief 38,500,000 0.40
Public
12 Ssb S/a Zv96 Daily Active Emer. Mkts Sec 38,480,000 0.40
13 Rd Fortis Infrastruktur Plus 36,380,000 0.38
14 Ssb Ps1o Pacific Select Fund Emerging Ma 36,082,950 0.38
15 Cb London S/a Hauck and Aufhaeuser Banqu 32,519,500 0.34
16 Pt Jamsostek (Persero) - Non Jht 32,500,000 0.34
17 Fortis Ekuitas -89763.4000 32,344,500 0.34
18 Bank of New York 32,316,275 0.34
19 Kim Eng Securities, PT 30,000,000 0.31
20 Ssb 2r26 Sanford C. Bernstein Fund, Inc. 29,168,000 0.31
Shareholder Composition of Holders owning less than 5% of Antam’s Shares

as per December 31, 2007
Type of Investor Domestic Foreign
Number of Shares Number of Holders Number of Shares Number of Holders
Retail 872,770,195 19,934 11,835,750 180
Institutional 884,981,381 695 1,568,872,424 217
TOTAL 1,757,751,576 20,629 1,580,708,174 397
Share Price Performance vs Jakarta Composite Index in 2007

Share Price Index
Rp
6,000 3,000
5,000 2,500
4,000 2,000
3,000 1,500
2,000 1,000
1,000 500 IDX
0 0 ANTAM
Jan Jun Dec

30
Quarterly Share Price Movement* PUBLIC SHAREHOLDERS

COMPOSITION
2006 2007
(%)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Highest (Rp) 935 1,210 1,180 1,690 2,370 3,250 2,875 5,050 27.2 23.1 28.7 30.4 16.6
Lowest (Rp) 705 730 860 1,090 1,400 2,390 1,875 2,600
9.3
4.4 6.9 3.0
Closing (Rp) 870 925 1,100 1,600 2,370 2,510 27,75 4,475 1.9 9.1
3.4 5.0 3.3 2.7
Volume (Billion) 1.97 2.38 1.64 1.06 3.69 5.16 4.09 8.23
Average Value Traded (Billion) 27.3 37.3 26.8 25.0 112.4 247.8 158.9 562.2
65 65 65 65 65
*Adjusted share price after stock split in 2007.
Stock began trading with the new nominal value at the continuous auction market on July 12th,
2007. Please see the Share Chronology Overview Table for more details. 03 04 05 06 07
Total Shareholder Returns Government Retail Investors
Institutional Investors Foreign

Antam’s share price (adjusted) increased 176% from Rp1,620 to Rp4,475 while total shareholder
returns in 2007 increased to a once again hefty 180% compared to the 126% of 2006. The
average trading value reached Rp264.1 billion while trading volume booked 21.17 billion shares.
Antam’s market capitalization increased 187% to Rp43 trillion (US$4.6 billion) or 2.2% of total IDX
market capitalization and was the 12th largest listed company.
Distribution Schedule (including holders of CDIs)

Number of Shares Held Total Shares Number of Holders
1 - 1,000 1,306,050 1,644
1,001 - 5,000 21,648,050 6,403
5,001 - 10,000 29,597,875 3,501

10,001 - 100,000 276,857,623 7,665
100,001 - 1,000,000 439,937,475 1,516
> 1,000,000 8,769,112,677 298
TOTAL 9,538,459,750 21,027
In 2007, Antam’s share price performed better than the indices of most international stock
exchanges, such as the Dow Jones, S&P 500, FTSE 100 and ASX All Share Mine which Antam
outperformed by 158%, 165%, 169% and 86%, respectively. However, due to the strong cumulative
performance of the mining sector in Indonesia, Antam underperformed the Jakarta Mining Index
by 19%. Antam still beat the IDX Jakarta Composite Index by 85%. Furthermore, based on a
Bisnis Indonesia list published on March 31st 2008, Antam created the largest sales growth and
net profit increase amongst the largest 10 non-bank public companies listed on the IDX, beating
mining and other companies.
Total Shares and Composition of Shareholders

The authorized capital of the company (after stock split action) was Rp3.8 trillion comprising 1
Dwiwarna (Golden) series A preferred share and 37,999,999,999 common shares with a nominal
value of Rp100 per share. The issued and fully paid-up capital was Rp954 billion consisting of 1
Dwiwarna (Golden) series A preferred share owned by the Government of the Republic of Indonesia
and 9,538,459,749 ordinary shares. 65% of the issued capital or 6,200,000,000 shares were owned
by the government, while 35% of the issued capital or 3,338,459,750 shares were publicly traded.
At the end of 2007, the largest public shareholder was MS + CO INC CA with a 2.56% ownership. Unlike
prior years in which most of the free floating shares were traditionally owned by foreign institutional

31
Number of Holders of Each Class of Security and Associated Voting Rights

Security Class Number Voting Right/Privileges
Preferred Stock 1 • Can request EGM

(A Dwiwarna Share) • Appoints candidates and approves of
Commissioners and Directors elected at
AGM/EGM
• Cannot transfer preferred stock to another
holder
• Can only be owned by the Republic of
Indonesia
• Must approve decision to issue equity
Common Stock 9,538,459,749 • Each share equals one vote at AGM/EGM

(B Shares) • Holders of more than 10% can request
AGM/EGM, and request agenda items
AGM = Annual General Meeting of Shareholders
EGM = Extraordinary Annual General Meeting of Shareholders
investors, local investors accounted for 18.4% of Antam’s free float while foreign investors held 16.6%.
Based on shareholder composition, the top 5 biggest shareholders were long-term foreign institutional
investors. Foreign institutional investors collectively held 16.4% of Antam’s total shares, while local
individual investors held 9.15%, local limited companies held 4.95%, local mutual funds held 1.82%
and local pension funds held 1.55%.
Dividend Policy
The company’s dividend policy is to distribute a cash dividend to the shareholders at least once a
year. Since 1997, the dividend policy has been to use a minimum payout ratio of 30% of net profit
after tax, unless the Annual General Meeting of Shareholders (AGM) determines otherwise. The
company’s average dividend payout ratio for the past 5 years is 34.8% and since 1997 IPO the
average dividend payout is 39.4%.
The AGM held in May 30th, 2007 decided Antam must pay a 40% dividend payment of the net
profit (payout ratio) of 2006, amounting to Rp621.11 billion or Rp65.116 per share (adjusted for
stock split), a significant increase compared to the dividend on earnings of 2005 of Rp286.26
billion or Rp150.05 per share (equivalent to Rp30.01 post stock split). The ex dividend date was
June 22nd, 2007 for the continuous auction market, the recording date for dividend payment was
June 26th, 2007 and the dividend payment occurred on July 6th, 2007.
Realization of the Utilization of Funds Obtained from the Initial Public Offering as per
December 31, 2007
In 2004, Antam had fully utilized the Rp556 billion raised from the 1997 IPO. Please see table
below for more details on the utilization of funds obtained from the Initial Public Offering.
Utilization of Net Proceeds from the Initial Public Offering (as of December 31, 2007)
Utilization Amount (%) Amount Realized
(Million Rp) (Million Rp)
FeNi III Expansion 73 406,152 381,646
Construction of Coal-fired Power Plant 9 50,074 -
Replacement and Modernization of FeNi I 8 44,510 127,998
Repayment of Certain Indebtedness to Bank BDN 5 29,243 29,243
Development of the Logam Mulia Refinery 5 26,394 17,486
Total 100 556,373 556,373

32
Investor Relations
The main objective of the IR department is financial: to help lower the company’s cost of capital.
Essentially two thirds finance and one third communications, Antam’s IR attempts to achieve
this goal by creating understanding about Antam in the capital market and by raising the profile
and recognition of Antam amongst the investment community. By creating ongoing dialogues
with targeted shareholders we strive to boost Antam’s credibility and to successfully bridge
management and investors.
Antam endeavors to constantly improve transparency and disclosure to attract investors in the
competition for capital. We are dedicated to providing information that can be compared to
peers and delivered in a timely and balanced manner. While we may feel we are well known,
we recognize for the vast majority of the international capital market we are unknown. Through
proactive targeted campaigns we hope to become amongst the world’s best known and most
credible mining companies.
Similar to 2006, the Investor Relations department is under the Corporate Secretary, which
reports directly to the President Director. IR works with all the Directors, all departments and
business units. The synergies between IR and all the different levels and divisions of Antam
are vital in order to understand the facts of the company and to communicate feedback from
the capital market to management. Without good internal disclosure we cannot have good
external disclosure.
During 2007, Antam’s work included investment conferences run by international brokers in
Jakarta, Singapore, Hong Kong, Bangkok and New York. Antam also conducted non-deal
road shows to Singapore, Hong Kong, London, Edinburgh, Boston, Washington, New York
and San Franscisco. Antam participated in two Indonesian Stock Exchange investor day
INCREASED BETTER
TRANSPARENCY ACCOUNTABILITY

33
From left to right: events, conducted numerous one-on-one meetings with local and foreign analysts, a site
Participation at an Investor Day. visit for international conference participants in Jakarta to see Logam Mulia, advertising
Extraordinary General Meeting of Shareholders, in print and television, and daily IR emails and phone calls. It was noticeable how many
Jakarta, 2007.
more international investors came to Jakarta, and also how international brokers opted to
Antam won the Top Performing listed
Company during Investor Awards 2007. organize conferences in Jakarta rather than, or in addition to, taking Indonesian corporates
President Director Dedi Aditya Sumanagara in traveling conferences abroad.
(on right) collects an award from Investor
Magazine for best listed company.
Unlike past years when we set numerous goals, Antam’s IR goal for 2008 is simply to improve
the volume and quality of contact with new investors. We want to become more proactive and
to target more investors. In order to achieve this we are revamping the website, maintaining our
level of advertising but building multi-pronged campaigns around specific events, improving our
email Newsalerts, conducting more meetings, roadshows and conferences and improving the
quality of reporting by better addressing specific financials. By choosing and focusing on this
simple goal for 2008, we hope to more effectively improve various other areas, and achieve other
sub-goals, of our investor relations.
For us the annual report is not a regulatory requirement, but is the most important investor
communication tool. However, there is always more information required. So we kindly ask you
contact us. We want to hear from you!
BETTER INCREASED INCREASED

PERFORMANCE COVERAGE SHAREHOLDER
VALUE

34
Results of our March 2008
We held an online survey at the beginning of 2008, called the Antam Investor Perception Survey.
We do this so we can make sure that you are getting the information you need and have an
accurate perception of the company. Effective communication is a two way street and we wish
to hear from you as part of an ongoing dialogue.
What are your two most important considerations in makinG a decision to invest?
Response Percent
Dividend Yield 29.9%
Earnings Per Share 32.6%
Free Cash Flow 15.6%
Revenue projections 22.6%
Competitive advantage and 32.9%

sector trends
Capital Appreciation 12.3%
Management and Planning 32.6%
Outlook 17.3%
Fundamentals 45.8%
Other (please specify) 2.3%
Select Two to describe why one would invest in Antam
Response Percent
Emerging Market 17.0%
Mining 40.8%
Long-term 27.3%
Indonesian/Asian 13.8%
Dividend/Value 16.6%
Capital Appreciation/Growth 28.0%
Commodity 31.6%
Solid fundamentals 32.6%
Management and Planning 13.8%
Other (please specify) 0.4%
Select One to describe Antam’s

Very Good Good Average Needs Poor
Improvement
Management Team 23.4% (65) 54.0% (150) 18.3% (51) 3.6% (10) 0.7% (2)
Strategic Plans 24.3% (68) 48.3% (138) 20.0% (56) 5.7% (16) 0.7% (2)
Corporate Governance 20.1% (56) 52.5% (146) 19.8% (55) 6.1% (17) 1.4% (4)

35
Direct Feedback Here, as well as throughout the pages of this annual report, are
some excerpts of the feedback to one of the questions we asked
from
in our online Investor Perception Survey 2008. The question was:
“If you could tell Antam’s management one thing, what would
that be?” The full results are available on our website. Thanks
You...
to those who participated and congratulations to the participant
who won the 10g gold bar from Logam Mulia.
FEEDBACK FROM Please do not say “we will acquire A/B/C mining company” without realization
since many people do not believe the management anymore. Sorry once
again I do not mean to put the management down, just a recommendation.
FEEDBACK FROM In maintaining Antam’s stock price in 2008, as nickel prices will be relatively
lower compared to 2007, it would be effective if Antam could give a dividend
of at least 75% from year 2007 net profit. This strategy would also be good
for the government as the main owner of Antam to meet their cash inflow
requirements for 2008.
FEEDBACK FROM Seek other resources of gold by acquisition and quickly implement
your plans.
FEEDBACK FROM Antam’s quarterly report that it files to the Australian Stock Exchange is
usually filed on the last day of the following month. How about targetting for
3 days before the end of the month?
FEEDBACK FROM Do not ever issue quarterly earnings guidance, the self-imposed benchmarks
that drive executives to sacrifice long-term strategy for a short-term payoff.
Disregard the speculator’s interest.
FEEDBACK FROM Your company’s must be more efficient in production related to the high price
of fuel (energy). Antam must improve its performance to survive in this highly
competitive sector.
FEEDBACK FROM Look for new revenue sources and increase diversification. Maintaining free
cashflow is a higher priority than profit.
FEEDBACK FROM Engage more with the press.
FEEDBACK FROM Need to be more proactive on executing some of the many deals under
consideration. Antam sometimes seems very slow at bringing new businesses
to fruition and may miss opportunities.
FEEDBACK FROM On the outlook side, Antam is diversified. But on the revenue side, nickel is
still the key catalyst. To ensure investor faith, management must continue
to deliver promises that convince public investors about its development in
metal markets, especially to diversify the lines of business (eg. gold & bauxite).
The glitches with FeNi lll, however, will leave a scratch on the perception of
Antam’s ability to sustain performance.

36 Q&A with Our Largest

Shareholder
Interview with Mr. Roes Aryawijaya, Deputy State Minister of State-Owned Enterprises in Mining, Strategic
Industry, Energy and Telecommunications.
How do you see Antam and the current Indonesian mining industry?
Antam posted significant results in 2007 with record breaking sales and profit figures. Antam was able to
capitalise on the positive momentum from the commodity boom by expanding its output. We admit the
Indonesian mining industry still faces huge challenges in the middle of the euphoria of the global mining
industry. I believe, however, Antam was able to utilise the available opportunities well.
What are your concerns regarding Antam?

I think management should pay extra attention to the trend of increased production costs. Cost reduction will
keep the competitiveness of the company in the midst of the M&A trend in the global mining industry. As well,
Antam needs to increase the competencies of its human resources as well as its processing abilities. This will
ensure fast adoption of the current mining technology and trends.
In 2008, the term of Antam’s Board of Directors as well as several members of the Board of
Commissioners comes to an end. As a majority shareholder, how does the government
see this?
A change in management is normal. The government is concerned with the future and
development of Antam and hope the change of management can take Antam in an even
better direction. The current management was able to create Antam as one of the largest
contributors to the state budget from the company’s dividends. On behalf of the government
as the majority shareholder, we would like to thank management for its contribution during
its term of service.
The government always strives to select the best people for top
management positions based on existing laws and regulations. We
conduct fit and proper tests as part of the selection process. The
process comprises several stages such as formulation of a long list
and a short list, psychological tests and interviews. Several factors
that we view include work experience, competency, dedication
and integrity.
Thank you very much for the interview. Lastly, what are your
expectations of Antam?
I would like to remind management that all efforts must focus on
how to increase the corporate and shareholders’ value which in
turn will improve the welfare of the Indonesian people. Management
needs to accelerate growth projects, both organically and
inorganically, not only with a prudent and professional approach
but also based on good corporate governance principles. I hope
that inline with the realisation of these projects, the fundamentals of
the company will be stronger so as to increase the long term value for the
company and its shareholders.

37
Dear Shareholder
Letter from the Board of Commissioners
38
Commissioners’ Statement
41
Letter from the Board of Directors

42
Directors’ Statement
49
Farewell Letter from the CEO

50

Letter from
the Board of Commissioners
38
“Antam’s fundamentals are now stronger

to face any challenges and Antam is more
experienced to make profits from existing
and future opportunities.”

39
Dear Shareholder,
In 2007, Antam maximized profit from high commodities prices by increasing the output of its upstream and
downstream products of nickel ore and ferronickel.
Inline with increased production and sales, Antam posted a Rp5.13 trillion net profit, a record breaking figure in
the 39 year history of Antam. To maintain the continuity of the corporate development, we encourage the Board
of Directors to start new projects which are built on the vast reserves of nickel ore and bauxite, both high grade
and low grade. As well, we continue to support management’s efforts to increase and find new reserves and
resources to support continuous corporate development.
We urge the Board of Directors to concentrate on moving downstream to more value added products, which
incorporate the smelting and refining process, as the company is currently supported by a strong cash position.
Such developments can be realized by working with more experienced partners so as to create more added
value and more jobs.
The recent trend in the mining industry is of increased acquisition activities. Acquisition opportunities might also
be feasible for Antam with its solid cash position as well as strong support from external parties.
Given the numerous development projects Antam currently has, management must prioritize and decide which
project should go ahead first.
Although the company performed well financially, the Board of Commissioners realises Antam still faces
challenges in terms of the implementation of corporate governance, human resources competencies, increasing
production costs and environmental management.
As such, we continue to encourage the implementation of good corporate governance at Antam. The Corporate
Policy Manual (CPM) serves as a guideline and reference for the implementation of corporate governance at
Antam, which can help to ensure better corporate performance and business sustainability.
The corporate policy manual is the guideline for the company’s regulations, guidelines and policies.
During the 39th anniversary of Antam on July 5th, 2007, we signed a committment to corporate governance and
a personal commitment to the Code of Conduct. The signing of both documents marks Antam’s commitment to
consistently and continuously implement the principles of GCG and adhere to a proper code of conduct, which
the Board of Commissioners realises are key success factors for a well functioning company.
In 2007, Antam’s Commissioner-level committees performed their duties and roles well. Antam has five
Commissioner-level committees, the Good Corporate Governance (GCG) Committee, Risk Management
Committee, Audit Committee, Nomination, Remuneration and HR Development Committee and Environment
and Post Mining Committee. The composition of the committee members changed with the addition of
new members for the Good Corporate Governance (GCG) Committee, Nomination, Remuneration and HR
Development Committee and Environment and Post Mining Committee. We hope the performance of the
committees will improve with the addition of the new members.
In 2007, there was a change in the composition of the Board of Commissioners. Mr. Yap Tjay Soen, Antam’s
Independent Commissioner, tendered his resignation. The resignation follows Mr. Yap Tjay Soen’s appointment
as an Independent Commissioner of PT Bank Mandiri Tbk in which he is required to follow Bank Indonesia Rule
No. 8/4/PBI 2006 on Good Corporate Governance. Antam extends its gratitude and thanks for Mr. Yap Tjay
Soen’s contribution during his term at Antam.

40
The Board of Commissioners also reminds the management that Antam’s human resources are a strategic
asset, which must be managed and developed in a good and integrated management system. Antam’s human
resources philosophy is to recruit, develop and keep the best human resources. The largest challenge for Antam’s
human resources mangement is to develop a work force which meets international standards. To achieve this,
management needs to have a Human Resources Charter and Human Resources Masterplan which serve as the
guidelines and methodologies to develop and implement policies, programs and development plans to create
excellent individuals.
The Human Resources Masterplan will be the guideline for human resources, both in human resources
management and learning and assessment. The plan will incorporate human resources processes, such as
employee recruitment, development, remuneration and benefits, industrial relations and employee dismissal.
The year of 2007 marks the 10th anniversary of Antam becoming a publicly listed company. We feel the
exposure to the scrutiny and rules of the domestic and international capital markets has improved the
performance of Antam.
We realise that Antam is no longer one of the low cost ferronickel producers. There are a few factors which contribute
to this, some of which are uncontrollable such as the rise of oil prices. However, other factors can be managed
better. We note that despite the relatively high production costs, ferronickel was the top earner for the company.
This is why the Board of Commissioners continuously supports the Board of Directors’ cost reduction program.
We appreciate management’s efforts to make a breakthrough in lowering cash costs, especially by finding a
cheaper energy source and to lower the use of oil to generate electricity.
We also ask the Board of Directors to improve internal controls and risk management to eliminate any
mismanagement which may add extra costs to the company and to anticipate any risks as early as possible.
In relation to corporate social responsibility and environmental management, the Board of Commissioners
continuously reminds the management to pay more attention to the firms responsibilites in terms of the physical,
social, economic, and cultural aspects of community and regional development.
The Board of Commissioners is hopeful Antam will be successful in achieving the top environmental management
level of Green from the Company Performance Rating Program (PROPER) by 2010.
The Board of Commissioners is assured that with 39 years of experience, Antam’s fundamentals are now
stronger to face any challenges and that Antam is more experienced to make profits from existing and future
opportunities. All of these, with a better internal control system and with the support of our stakeholders, will
create a better future.
Finally, the Board of Commissioners would like to extend its gratitude for the support and cooperation from the
Board of Directors, employees and other stakeholders in making Antam a bigger and better company.
Yours sincerely,
Board of Commissioners
Ir. Wisnu Askari Marantika

President Commissioner

41

Letter from
42
the Board of Directors
“We were able to maximize the value

out of our assets to succeed in our
main goal of creating considerable
shareholder value.”

43
Dear Shareholder,
It is my great pleasure to report, on behalf of all the Board of Directors, that the year 2007 was one of the best
years ever in the 39 years the company has been incorporated. When we judge our performance we look at EPS
growth, return on equity and margins and in each case it was a great year. Thanks to the boom in commodity
prices, in particular for nickel, as well as increased production volumes, we had a fantastic year in 2007 in terms
of generating a large cash position from our substantial free cash flows to lay the foundation for the next stage
of growth. We were able to maximize the value of out of our assets to succeed in our main goal of creating
considerable shareholder value. With our strong performance, which we aim to continue, we are poised for growth
and ready to create a better future in terms of growth, efficiency, value creation, profitability as well as other
aspects important to all of our stakeholders.
Generating Higher Returns

Total Shareholder Returns
We had a record year in terms of generating total shareholder returns, which increased to 180% or Rp2,920.12.
Our shareprice rose 176% to end the year at Rp4,475, after hitting an all time high of Rp5,050, with a market
capitalization of Rp42.7 trillion (US$4.5 billion). The average shareprice was Rp2,742. This compares with total
shareholder returns of 126% or Rp910.01 in 2006. As in the preceding two years, our share price outperformed the
Indonesian Stock Exchange (formed after the merger of the Jakarta and Surabaya Stock Exchanges), every major
international index and all major mining indices. As well, as in every year since listing on the Indonesian Stock
Exchange (IDX) in 1997, we returned value to our shareholder by way of a generous cash dividend. We paid a cash
dividend in the amount of Rp621 billion, or 40% of our net profits after tax for the year ended December 31st, 2006.
The cash dividend was equivalent to Rp65.12 per share (or Rp325.58 per share prior to the 5:1 stock split in July
2007). We will continue to increase the value to shareholders by way of cash dividends in the years ahead.
Profitability
Our audited consolidated net sales rose 113% to Rp12,008 billion, and with only moderate increases in operating
costs, our consolidated net profit for the year ended December 31st, 2007 surged 230% to Rp5,132 billion
(US$562million), with the EPS also increasing 230% to Rp538.08 from the Rp162.79 of 2006. Not only due to the
record breaking high international nickel prices, but also due to volume expansion and subdued cost increases at
our ferronickel and nickel ore operations, we had a year of record profitability. Our profit performance exceeded
that of the top ten non-bank companies on the IDX and our net margin of 43% was the best in the Indonesian
mining sector, as well as most comparable international mining companies.
Returns and Debt

Despite our equity position increasing due to large influxes of free cash flow by 105% to Rp8,764 billion, and
without taking on any additional debt, we were still able to significantly improve our industry-beating return on
average equity to a significant 79%, up from 36% in 2006. Knowing ROE is the ultimate indicator of management’s
ability to create value, we are delighted with such high returns and recognize the challenge lay in continuing to
maintain this performance.
Some shareholders have criticized us for not maintaining a fixed gearing ratio, or ratio of debt to equity, as they
would prefer to see us leverage the balance sheet to grow and generate returns. In 2007, we further reduced our
debt to equity to 10%. However, most of our projects are still at the feasibility stage and we do not believe in pre-
financing our projects. We are generating substantial returns without having to overly burden the balance sheet.
We will maintain our prudent policy regarding the capital structure of the company, which is to continually
reduce debt until capital expenditure plans have been finalized and debt funding is required. We will always
maintain a healthy cash position and a robust balance sheet.
Margins
Our margins improved significantly, again beating past records, with the gross margin increasing to 60%, the
operating margin increasing to 57% and the net margin rising to 43%.

44
Comparatively Stronger
During 2007 we met and communicated with many of our valued shareholders, investors and analysts. We found
that some investors claimed our superior performance in 2007 was because we had gotten lucky due to the
commodity boom and that a super strong nickel price had bailed out a potentially poor operational performance
due to the leak at our FeNi III smelter. This is an easy assumption to make as sometimes investors have a negative
perception about the efficiency and ability of Indonesian state-owned enterprises. However, and at the risk of
being defensive, I must point out the facts tell a different tale. The reality is we outperformed our peers in the
Indonesian, Regional and International mining sectors, looking at general mining or more specifically at nickel.
And this outperformance didn’t just occur in 2007, but in many cases over the preceding five years, before the
commodity boom began, and during the construction and ramp up of our new smelter FeNi III. In almost every
performance measurement category, whether it is sales growth, historical return on equity, or historical margins,
we have consistently equaled or beat other beneficiaries of the commodity boom.
While we never anticipated the nickel prices would soar to such heights, and we recognize the role high
prices played in the performance of the company, we also must acknowledge we made a strategic decision to
develop and maintain nickel as one of our key commodities. Mining is a difficult business and while unfortunate,
operational setbacks will occur. It is known amongst builders and designers that every new smelter needs a
couple of years before it can be run at optimal capacity.
Our Strategy
We feel the performance in 2007 is confirmation our growth strategy is working. Our strategy is as effective as it is
simple. We will create maximum shareholder value by continuing to diversify horizontally into other commodities
where suitable, while also continuing to focus on those commodities we know best,
which are nickel, gold and bauxite. We will diversify through an active exploration
program and through strategic acquisitions.
We will also maintain a diversity of customers so as to not be overly reliant on any

one market.
We will also continue to diversify vertically by moving downstream in order to increase

the value-added of our operations. While some of the bigger international mining
companies have claimed they will now start to move upstream, they are moving
from now lower margin refining back into smelting, or from packaging to refining.
We are moving downstream to the first level of processing where the increased
value is substantial. Later on, if it makes good business sense, we will move further
downstream, such as from ferronickel to stainless steel. We have focused on nickel,
gold and bauxite in the past and this has proven to be a winning combination. Our results in 2007 are largely due
to the increased value that came from moving more downstream by building additional ferronickel capacity.
We will focus on mines and deposits in Indonesia as not only do we benefit from our knowledge of Indonesia,
but the industry in general has higher returns than elsewhere. However we will actively seek international
partnerships with world class mining companies to best develop our vast reserves in the most efficient, profitable
and correct way. We will engage the rise of China and increasingly India by seeking to form partnerships with
Chinese companies, viewing China as an opportunity not a threat. We will continue to be a low cost operator and
holder of large reserves and resources and continually strive to improve in these areas. We will also continue to
not overly burden our balance sheet and take a prudent approach to making investments, which must generate
a return of at least 15%.
Operations: Increased Volumes and Some FeNi III Teething Problems

Our operations performed well in 2007. After all, it was the 28% increase in contained nickel production to
18,532 tonnes (including 1,400 tonnes of toll smelting) and the 93% increase of saprolite nickel ore production,
which together with higher nickel prices, caused our profits to increase so substantially.

45
Product 2007 Actual 2007 Target 2008 Target % Change to 2007 Actual
Nickel contained in Ferronickel 18,532 tonnes 20,000 tonnes 17,000 tonnes - 8%
Gold 2,791 kg 3,000 kg 2,980 kg + 7%
* in general Antam sells what it produces. For nickel ore Antam buys higher quality ore feed from a third party located closer to the FeNi facility. For gold, Antam
sells double what it produces through trading activities.
Ferronickel
However, it is also true that due to a leak that occurred on FeNi III on June 16th, 2007, we did not achieve the
previously stated target range of 20,000 – 22,000 tonnes. While disappointing we understand there will always be
problems during the ramp up period of a new smelter. FeNi III, which began commercial operations on January
29th, 2007 after a three year construction period, has already been a great investment for us and has generated
good returns on the US$153 million contractor cost. The repairs were completed in August, were covered by the
warranty and we ramped up the unit to a safe 25 megawatts, or roughly 60% of capacity. We will continue to
slowly ramp up the furnace and determine the optimal operating conditions and as always keep you informed
with timely disclosures. However for 2008, unless we are able to safely raise the average power load above the
25 megawatts as at the end of 2007, we expect to produce 17,000 tonnes, before any toll smelting. If we are
able to safely and steadily raise the power above 25MW in the years ahead, our annual production volumes will
increase above 17,000 tonnes.
All of our ferronickel is sold to stainless steel manufacturers, with about half being sold to Europe. The price is
calculated according to the international spot price. In 2007, the achieved selling price rose 56% to US$16.16
per pound, due mainly to continuing strong demand growth from China and a lack of significant new supply. We
experienced some softening in demand due to the “de-stocking” program carried out starting in the summer
months by mills in Europe in order to lower demand. We also experienced some shipping difficulties related to
the lack of cargo space, however not significant enough to impact on our sales volumes.
Nickel Ore
To offset lower ferronickel production, we decided to raise saprolite ore exports. Saprolite is a laterite ore and is
generally processed using phyrometallurgy (or heat based smelting technology) to make ferronickel and other
intermediary nickel products. The most significant development with our nickel ore exports was our substantial
entrance into the Chinese market. We have for many years sold 2.5 million wet metric tons of high grade saprolite
to the Japanese and over the past four years around 1 million wmt of saprolite to the Eastern Europeans. At the
end of 2006 we began to see demand from China for our laterite ore, which they were already buying from the
Philippines and New Caledonia and were feeding into existing blast furnaces (a simple furnace which unlike an
electric arc furnace does not require a power plant). Normally used to make pig iron from low grade iron ore, the
Chinese firms are now using laterite to make nickel contained in pig iron (NCPI).
When we held a tender to sell 2.0 million wmt of saprolite in February 2007, twenty different Chinese firms
were represented, and three were chosen. We took the opportunity presented by the Chinese demand and we
decided to ramp our exports higher and ended up exporting 3.6 million wmt of saprolite to the Chinese, from
combined total exports of 6.9 million wmt. The demand from China for the ore was very strong, as the high
nickel prices made the high cost blast furnaces very profitable. If nickel prices were to fall below the marginal
cost of operating the typical Chinese blast furnace, demand would fall. As one of the major costs is transporting
the laterite ore to the blast furnace, many firms, including Antam are considering building such a facility at an
ore site in Indonesia. Given there might be some slackening demand from the Chinese blast furnace operators,
we are conservatively forecasting nickel ore exports of 5.5 – 5.8 million wmt for 2008. We view the entrance into
China as evidence of our ability to meet new demand and find new customers and markets. It does not contradict

46
our stated strategy of moving downstream into processing as the ore we sold to
the Chinese is not ore we would otherwise process ourselves.
Our Improving Corporate Governance

We are pleased to see that our corporate governance improved in 2007, which
an independent reviewer has attested to. For us good corporate governance
is a system that needs to be executed consistently and continuously to achieve
sustainable growth through management practices based on the principles of
transparency, accountability, responsibility, independency and fairness.
Some significant instances of governance improvements that took place in fiscal year 2007 include the
finalization of the Corporate Policy Manual, the performance review of individual executive directors and of
board-level committees, and the writing of our corporate sustainability report according to the principles of
international standards of reporting on such issues.
A Better Future
Robust Financial Position and Ready to Grow
We are in a very strong financial position. As at the end of 2007, we had cash of Rp4,744 billion, a 317% increase
over 2006, and long term debt had decreased 35% to Rp700 billion. With credit rating agencies reviewing our
financial structure for possible upgrades, our access to capital has never been better and we are poised for
growth. We are ready to leverage our balance sheet and make suitable high return investments to create a better
future, in terms of not only profit growth but also in terms of a better future in general for all of our stakeholders.
We believe we are well positioned to maximize the benefits of this amazing commodity boom that we are in, given
our fortunate position as a government-owned entity in a mineral rich country such as Indonesia and we see many
years of profitable and sustainable growth ahead. We have delivered industry-beating performance for the past
five years and we intend to do so for the next five years.
We want to encourage our shareholders to take a long term view. Mining is a slow yielding and long term
investment. Many of our shareholders have been with us for several years and they know the value taking a long
term view can bring. We have just finished a phase of growth and have been building the foundation for the next
phase of growth. As such, we are no longer about volume growth over the next twelve months, and due to the
softening nickel prices no longer about higher prices as our main value driver.
We have a very low debt to equity and the free cash flows will continue in 2008. In 2007, our interest bearing
debt to equity ratio decreased to 10% from 31% in 2006 while our free cash flow grew to Rp4,639 billion. We
had operating cash flows of Rp4,836 billion and capital expenditures of Rp197 billion. It is these cash flows and
other forms of funding that will pay for the various organic and acquisitive growth projects, which together with
international mining companies, will develop Antam’s vast, high quality nickel and bauxite reserves.
Upcoming Organic Projects: Cash to Flow in Next Three to Five Years

Antam has large reserves and wishes to develop these reserves to maximum benefit. Antam will seek partnerships
with international mining companies when such a tie up will create more value. In doing so, Antam will often sign
several non-binding agreements with different parties to conduct feasibility studies. Often these agreements will
not result in an formal joint venture but they are the standard means by which to find the best partner and to
develop the best plans to develop mineral reserves.
All of the projects below did not have fixed capital expenditure plans as at the end of 2007, but development plans
will soon be finalized. These projects represent some of our long term value creation possibilities.
On September 11th, 2007 we appointed Macquarie as our corporate financial advisor to advise and assist us in
relation to Antam’s project pipeline as well as in relation to acquisitions.

47
Tayan Chemical Grade Alumina with Japanese

On March 12th, 2007 we announced the formation of a joint venture company called Indonesia Chemical
Alumina to study the feasibility of building a chemical grade alumina (CGA) plant to develop a portion of our large
deposits of bauxite reserves at Tayan, West Kalimantan, Indonesia. The formation of ICA, with Japanese partners
followed the signing of the joint venture agreement of the Tayan project in March 2006. At the end of 2007
ICA had made progress in short-listing an engineering, construction and procurement contractor (Kawasaki)
and in negotiating the financing with the export credit agency, known as the Japanese Bank for International
Cooperation. Construction is expected to begin in 2008, with output commencing at the end of 2010 or 2011.
ICA is expected to produce 300,000 tonnes of CGA for sale to Japanese and Indonesian markets.
West Kalimantan Smelter Grade Alumina with Rusal

On September 6th, 2007 we signed a Heads of Agreement with UC Rusal of Russia to jointly develop bauxite
deposits in Indonesia. The agreement called for feasibility studies to be conducted on the possibility of producing
1.2 million tonnes of SGA per year. Using bauxite reserves not required for the CGA project, the SGA project with
Rusal is still in preliminary stages. We had been looking at different Chinese partners, such as Chalco and Xinfa,
to develop SGA on Bintan Island, but those plans did not eventuate as we did not have the same perception of
the project.
West Kalimantan with Hangzhou Jinjiang Group of China

As Antam did not continue the plan with Xinfa, Smelter Grade Alumina development has moved to West
Kalimantan. At Mempawah, Antam began an SGA project with a new partner, Hangzhou Jinjiang Group, China.
Antam aims for about 55% ownership of the project. The initial estimated cost is around US$800 million – US$1
billion and the plant may process 1 million tonnes of SGA per year. Antam expects the Bankable Feasibility
Study will be completed in 2008.
Obi Island Nickel/Stainless with Tsingshan

In October 2007, we signed an agreement with Tsingshan Holding Group Co. Ltd of China to conduct a feasibility
study of jointly developing an integrated stainless steel facility at our laterite ore concession at Obi Island, North
Maluku, Indonesia. The study will consider a project which consists of a power plant, an NCPI or ferronickel
plant and a stainless steel plant and will determine the capacity and the investment amount of the facility.
The basic idea in the first stages is to mimic the blast furnaces that are operating in China, but lower the
operating costs by eliminating the cost of transporting ore to China. The main bottle neck is getting coking coal
and/or coke, which is currently not produced in Indonesia.
Pearl Nickel Project at Buli with BHP Billiton

On February 13th 2007 we signed a Heads of Agreement establishing an alliance with BHP Billiton to investigate
the joint development of an extensive nickel laterite resource on Halmahera Island, Indonesia. This project may
include the next ferronickel expansion, FeNI IV, to process our saprolite reserves and may include the use of
hydrometallurgy to process our low grade limonite reserves.
Cost Reduction
Fuel is up to 50% of the cost of producing ferronickel. Currently we use expensive diesel fuel to power our operation,
as we used to be subsidized. The plan to reduce costs in the future is to convert to a less expensive fuel.
On September 21st, 2007 we signed a five year Power Purchase Agreement with Tamboli Energy for the Pomalaa
ferronickel facility to use up to 15 megawatts of power from a nearby run-of-river power plant. The construction
is expected to take 18 months and the cheaper power will lower Antam’s ferronickel power costs by 8-10%.
While not a significant cost reduction, it demonstrates Antam’s commitment to converting to a lower cost fuel. As
well, as a renewable energy source, it will slightly reduce Antam’s carbon footprint.

48
The major cost reduction will come in the next two years when we will convert to either natural gas, hydropower
or coal. As at the end of 2007, we were completing feasibility work on a system called a Smart Predictive Line
Controller, made by Hatch Ltd, that would allow the use of normally unsuitable coal.
Acquisitions
We will also use our strong financial position and increased access to capital to make targeted and high return
acquisitions that diversify our portfolio away from nickel.
For most of 2007 our focus was on making gold acquisitions, to benefit from a good price outlook, operational
synergies, natural hedging and in order to replenish our dwindling gold reserves, of which we have about 6 - 7
years remaining. While we are still committed to finding suitable gold acquisitions, we value diversification and if
we find a suitable acquisition in another base metal, we will take that opportunity.
At the end of 2007 we were making plans with its Chinese partner, Shenzhen Zhongjin Lingnan Nonfemet Co.
Ltd to make a takeover bid for Herald Resources Ltd. Herald owns a lead zinc project in Indonesia which we
want to majority own, with Zhongjin as the operator, so as to maximize value. As at the date of publishing this
annual report, we were still in the midst of our takeover bid.
We also have several minority stakes in joint ventures around Indonesia. These projects now represent potential
value for Antam as they become further developed and the commodity boom continues. Two of these projects
are currently operating, with the PT Nusa Halmahera gold operation run by Newcrest paying a hefty annual cash
dividend, which amounted to Rp155 billion in 2007.
Challenges and Risks

The main challenges we face are related to the poor regulatory environment in Indonesia due to regional autonomy,
the advent of local regents granting licenses for major mining projects and the lack of a revised mining law. We
hope the new mining law will soon be passed. Despite this, with our nearly forty years of experience we are well
placed to handle these challenges.
Another concern we face is the risk of global recession and the knock on effect to commodity prices. While we do
believe in the long term strength of commodities and the huge demand related to the emergence of China and India,
there could be period of price decreases which could seriously impact on margins. Unlike other ferronickel players
however, we have the ability to convert to a lower cost fuel, which we expect to implement in hopefully 2-3 years time.
The other concern is we need the appropriate technology to process our limonite. While blast furnaces can achieve
this when nickel prices are high, it is not certain whether they can do so when prices fall. As well, blast furnaces
can pose an environmental problem.
Another challenge is to operate in a more sustainable and environmentally-friendly fashion. This is due to
the reality that corporate social responsibility is not only the right thing to do, but it makes good sense
from a business perspective.
Thank You
I would like to take this opportunity to thank all of our stakeholders for supporting Antam as it has become a
renowned and leading Indonesian mining and metals company. I would also like to thank all of our stakeholders
for supporting me during my two five year terms at Antam and I wish my successor all the best in leading Antam
to its better future.
Ir. Dedi Aditya Sumanagara

President Director

49

Dedi Aditya Sumanagara:

10 Years as CEO
50
Jakarta, April 11th, 2008
Re: Farewell
Dear Shareholders and Other Stakeholders:
It is with a mix of sadness and delight, pride and humility that I must now say goodbye. It has been
my honor and privilege to serve at Antam for these past 33 years, and as the President Director for “It has been a
the past ten years. As I can only serve as President Director for two five year terms, it is now time
for me to hand over the post to a new President Director.
wonderful ride here
Armed with my engineering degree in Mining Exploration from Bandung’s Institute of Technology,
I joined Antam’s Geology Division in 1975. In 1988 I became the Head of the Geology Unit, which
at Antam. Of course
I did for four years, when I was appointed in 1992 as the Head of the Gebe Nickel mine. In 1994,
I became Antam’s Director of Development and in 1997, the year Antam became a publicly listed
there were bumps
company, I was appointed Antam’s President Director.
along the way, but
It has been a wonderful ride here at Antam. Of course there were bumps along the way, but in the end I
can say I am proud of what we achieved during my time here, especially as the President Director. in the end I can say
I have to say, listing our stock on the capital market and opening up the company to the scrutiny I am proud of what
of savvy investors was one of the best things we did to improve the performance of our company.
So I would like to especially thank all of our esteemed investors, shareholders, analysts, bankers, we achieved during
brokers and other capital market participants for their constant inquiry and examination. Although
it was not always fun to hear your feedback, it was necessary and it has helped Antam get to my time here.”
where it is today.
The succession process is underway, and is being coordinated by the Ministry of State-owned
Enterprises together with our Remuneration and Nominations Committee. Their choice of candidate
must be ratified by our shareholders at our General Meeting of Shareholders in June 2008. I am
confident that whomever comes in to replace me will be the right person for the job and will lead
Antam to become even bigger and better.
I wish everyone all the best in the future, it has been my pleasure to work with you and to get to
know so many of you over the years.
With warm regards,
Dedi Aditya Sumanagara

51
Antam’s People
The Management
52
Board of Commissioners’ Biographies

53
Board of Directors’ Biographies

55
Q&a with the Board of Directors

56
Our Human Resources

58

The Management
52
From left to right :

Prof. Dr. Ir. Irwandy Arif, M.Sc., Ir. Supriatna Suhala, M.Sc., Ir. Wisnu Askari Marantika, Ir. Suryo Suryantoro, M.Sc.

Komisaris Utama

Board of Commissioners 53

President Commissioner
Joined Antam as President Commissioner in 2004. Graduated with a degree in Electrical Engineering, Bandung Institute of Technology (ITB) in 1976.
Previously held various key positions at PT Telkom Tbk such as Engineering Director (1992-1995), Technology & Planning Director (1995-1996), Senior
Staff of President Director (1996-1997), and Senior Advisor to the Board of Commissioners (2003-2004). He had executive positions in various companies
such as President Director of PT Elektrindo Nusantara (1997-2000), President Commissioner of PT Komselindo (1998-1999), President Commissioner
of PT Indosat Tbk (2000-2002), President Director of PT Infoasia Sukses Mandiri (2003-2006) and Commissioner of PT Infokom Elektrindo (2005-2007).
Currently the Vice President Commissioner of PT Infoasia Teknologi Global Tbk.
Ir. Suryo Suryantoro, M.Sc.

Commissioner
Joined Antam as a Commissioner in 1999. Graduated with a degree in Mining Engineering, Bandung Institute of Technology in 1974, and received a
Master of Science degree in Geology and Mineral Exploration from the School of Geology, University of New South Wales in 1984. Followed numerous
management training sessions such as Sepadya (1989), Sespanas (1993) and Lemhanas (2003), Geophysics training at KUL-Belgium (1975), mineral
exploration satellite data processing at USGS-USA (1986), mineral exploration at Western Australia School of Mines (1989). He began his career at the
Department of Mines and Energy as Expert Staff of Gephysics Exploration at the Directorate of Geology (1974-1978), Section Head of Computer Data
Processing at Directorate of Mineral Resources (1979-1988), Sub Directorate Head of Geophysics Exploration and Drilling at Directorate of Mineral
Resources (1989-1995), Secretary at the Directorate General of Geology and Mineral Resources (1995-1999), Director General of Geology and Mineral
Resources (1999-2001), Coordinator of Senior Advisors to the Minister of Energy and Mineral Resources (2001-2003), Head of Education and Training
Agency for Energy and Mineral Resources (2003-2006). He was Inspector General of the Ministry of Energy and Mineral Resources (2006-2007).
Ir. Supriatna Suhala, M.Sc.

Commissioner
Joined Antam as a Commissioner in 1999. Graduated with a degree in Mining Engineering, Bandung Institute of Technology in 1975, and received a
Master of Science degree from School of Mines, The University of New South Wales, Sydney, Australia in 1986. He held various key positions at the
Department of Energy and Mineral Resources such as Head of Mineral Technology Research and Development Centre (1995-1997), Director of Mining
Engineering at the General Mining Directorate General (1998-1999), Head of Foreign Coordination Bureau (1999-2001), Inspector at the Inspectorate
General (2001-2003), Head of Research and Development Centre for Energy and Electricity (2004-2005) and Head of General Bureau of the Department
of Energy and Mineral Resources (2006-2007).
Prof. Dr. Ir. Irwandy Arif, M.Sc.

Independent Commissioner
Joined Antam as an Independent Commissioner in 2004. Graduated with a degree in Mining Engineering, Bandung Institute of Technology in 1976,
and received a Master of Science from Industrial Engineering Department, Bandung Institute of Technology in 1983. Inginieur Expert en Mine (1987).
Diplome d’Etude Approfondie (1988) and Doctor (1991) from Ecole des Mines de Nancy, France. A professor of Mining Engineering at Bandung Institute
of Technology in 2003. He held various key positions at the Bandung Institute of Technology such as the Head of Mining Planning Laboratory (since
1992), Chairman of the Mining Engineering Department (1995-1998), Vice to the Dean of Academic, Faculty of Mineral Technology and Geological Science
(1998-2002), Secretary of Internal Control Unit (2002-2003), Head of the Internal Control Unit (2003-2004), Dean of the Faculty of Mineral Technology
and Geological Science (2004-2005). Chairman of the Council Commission of the Academic Senate (2005-2007) and since 2006 until present he is the
Chairman of the Internal Commission of the Board of Trustee of the Bandung Institute of Technology.
Ir. YapTjay Soen, MBA

Independent Commissioner
Graduated with a degree in Engineering, McGill University, Canada, in 1976, and received a Master in Business Administration in 1980. Held various
positions at Citibank Indonesia (1980-1988), Director at PT Toyota Astra Motor (1989-1992), President Director of PT Astra Sedaya Finance (1992-
1993), Chief Executive Officer of PT Astra International Auto 2000 Group and affiliated companies (1993 -1998), Chief Operating Officer of Asia Food &
Properties, Singapore (1998-1999), and Deputy President Director (Finance, Accounting and Investor Relations) at PT Bank International Indonesia Tbk
(1999-2001), Independent Commissioner of PT Bank BNI Tbk (2004-2005). President Director of PT Tuban Petro Chemical Industries (2002-2007) and
Independent Commissioner of PT Bank Mandiri Tbk since 2005. Independent Commissioner of Antam from 2002 until May 2007.

54
From left to right :

Ir. Syahrir Ika, MM., Ir. Darma Ambiar, MM., Ir. Dedi Aditya Sumanagara,
Kurniadi Atmosasmito, SE., MM., Ir. Alwin Syah Loebis, MM.

Komisaris Utama

Board of Directors 55

President Director
Joined Antam in 1975. Graduated with a degree in Mining (Exploration) Engineering, Bandung Institute of Technology in 1974. Held various key positions
at Antam for 13 years before becoming General Manager of the Geomin Unit (1988-1992), General Manager of the Gebe Nickel Mining Unit (1992-1994)
and Director of Development (1994-1997). President Director since 1997.
Ir. Darma Ambiar, MM.

Director of Development
Joined Antam in 1982. Graduated with a degree in Mine Metallurgy Engineering, Bandung Institute of Technology in 1981 and received a Master degree
in Management from Prasetya Mulia. Held various key positions at Antam for 21 years before becoming the Head of Strategic Planning for Research of
Mining Authority (2003). Director of Development since 2003.
Kurniadi Atmosasmito, SE., MM.

Director of Finance
Joined Antam in 1980. Graduated with degree in Management, from the Krisnadwipayana University in 1986 and received a Master degree in Management,
LPMI in 1998. Held various key positions at Antam for 22 years before becoming the Head of Internal Audit (2002-2003). Director of Finance of Antam
since 2003.
Ir. Alwin Syah Loebis, MM.

Director of Operations
Joined Antam in 1983. Graduated with a degree in Chemical Engineering, Bandung Institute of Technology in 1983 and received Master degree in
Management from Prasetya Mulia. Held various key positions at Antam for 20 years before becoming the Deputy Director of the Nickel Unit (2003).
Director of Operations since 2003.
Ir. Syahrir Ika, MM.

Director of HR & General Affairs
Joined Antam in 1998. Graduated with a degree in Animal Husbandry, University of Nusa Cendana Kupang in 1983 and received a Master degree in
Management from University of Trisakti, Jakarta in 1995. Held various key positions in the Ministry of Finance since 1985. Assistant of Antam’s Board of
Commisioners (1998-2001) and a member of the Audit Committee since 2001. Director of General Affairs and Human Resources since 2003.

Q&A with the Board of

Directors
56
Isn’t ramping up ore exports contrary to your growth strategy? What do you think are the
chances that Indonesia will merge the state’s interests in mining to create the Integrated
Resource Company (IRC)? What’s the latest on the mining law?
Increasing our ore exports is not contrary to our stated growth strategy of moving downstream
into more processing activities. The reason for this is because the increase is of a low grade
nickel ore that we would not otherwise process ourselves. By meeting the demand for this
ore from Chinese blast furnaces, to make nickel contained in pig iron, we capitalized on the
hot nickel market conditions and boosted revenues significantly, while still safeguarding our
high grade ore for later value-adding processing activities. It is difficult to say if or when
the Integrated Resource Company will become a reality, as it involves multiple groups and
government departments. I support the idea of the IRC as long as it will create value for President Director
shareholders. The suggested revisions to the mining law are in their final stages, with the final
hurdle being how to manage the transition period; I am cautiously optimistic the new mining
law will be passed in 2008.
Some people complain that the pace of Antam’s development is not fast enough or
focused, what do you say to that?
Those within the mining community and those that understand us well know our pace of
development is not slower than others. We just finished a massive ferronickel expansion
and have been simultaneously preparing for the Tayan chemical grade alumina expansion,
which is next in line, as well as doing feasibility work on several other projects. There are
many changes that are occurring in Indonesia, economically and politically. While we
support positive national development, it has slowed the pace of new mining investment
in the country. We expect this will improve soon. There are so many moving parts that
must be brought into alignment to make a mining project feasible and beneficial for the
Ir. Darma Ambiar
long term. We would be foolhardy to go ahead with a project until we had explored every Director of Development
avenue of development, ensured we had the best partners and mitigated as much as
possible the numerous risks. Our shareholders that have held us for three to five years
know we can deliver growth.

57
Antam has virtually no debt thanks to the huge cash flows and your debt repayment
programs. However, why not maintain a certain amount of leveraging to maintain growth
and improve ROE?
Being financially prudent is an important part of our strategy to meet our objective of increasing
shareholder value. While we realize that increasing leverage could improve ROE, our ROE has
actually been better compared to our peers despite our low debt level. We also acknowledge
that when the time is right, we will need a certain amount of debt to help boost our growth and
expansion. We will study any debt proposal very carefully to ensure that our capital structure
will remain healthy. We will not pre-finance any project. We will only increase our debt to finance
a project after we are sure that such a project will take off.
Kurniadi Atmosasmito, SE, MM.
Director of Finance
Antam always says it’s human resources are its best asset. Yet there’s a common negative
perception that SOE employees underperform. What’s your take on this?
That’s a good question. Such a perception is understandable given the culture of SOE
employees is often associated with being slow and underperforming. We have made
cultural and values change as top priorities. We have corporate values called PIONIR or Self
Development, Integrity, Harmony and Reputation and continuously socialise the concept. To
improve the employees’ performance, we implement the performance based management
system, a remuneration system which is based on position and performance as well as the
Balanced Score Card System.
We aim to achieve HR Excellence which includes factors such as going beyond expectations,
building partnerships and environmental awareness. We also develop our employees by
implementing the Junior Specialist Development Program (JSDP) for new employees, Antam
Ir. Syahrir Ika, MM.
Director of HR & General Affairs Specialist Development Program, Antam Leadership Development Program (ALDP) for senior
managers, and Antam Management Development Program for middle managers. I believe the
negative perception on SOEs employees will gradually change. We only need to ensure the
performances of SOE employees are on par with their private colleagues.
FeNi III unfortunately leaked again in June. How well do you think the operations
performed in 2007?
Overall I’d say 2007 was yet again a great year. Even though the unexpected FeNi III leakage
was disappointing this is common during the ramp up period. Every new smelter has its own
specific characteristics and challenges, which for FeNi III included new technology and a much
bigger capacity. On the other hand, FeNi I and II performed well, due to stable operations and
higher grade ore feed. Despite problems with FeNi III, we still were able to increase production
of ferronickel by 28%. We also increased nickel ore production 63% while keeping cost
increases to a minimum. Our revenue performed even better with 113% growth on the back of
higher sales volumes except for bauxite, together with higher nickel and gold prices. I believe
Ir. Alwin Syah Loebis, MM.
Director of Operations 2007 formed a solid basis for our next phase of growth.

Our Human Resources

BOARD OF COMMISSIONERS
BOARD OF DIRECTORS
58
Corporate Secretary Internal Audit
• Information Technology Group

• Environment and Post Mining • Supply Chain Management Group
• Learning and Assessment • Marketing and Customer Support Group
• Program Management Office • Operations Controlling
• Risk Management • Tokyo Representative
• Corporate Strategic Development Group • Human Resources Management
• Legal and Compliance • Accounting and Budgeting
• Corporate Social Responsibility Group • Treasury and Financial Engineering
Precious
Nickel Gold Bauxite
Metals Unit Geomin Subsidiaries
SBU SBU SBU
Refinery Unit
Strategy and Management

We regard our human resources as one of our most important assets. The focus of our human
resources strategy is to continuously improve our work force through the recruitment of young
and highly skilled graduates, increased training, selective workforce reductions (right-sizing)
and improvement of worker satisfaction and productivity through better alignment between
performance and compensation.
2003 2004 2005 2006 2007

Permanent* 3,421 3,305 3,239 2,749 2,716
Right sizing - selectively reducing our total
Temporary 126 129 217 209 136 workforce - is one of our strategies to
increase efficiency and improve employees’
Total 3,547 3,434 3,209 2,958 2,852
welfare and productivity.
*Note: The data is consolidated permanent employee figures of Antam Tbk and its subsidiaries.
Despite hiring young and highly skilled graduates in 2007, our permanent work force decreased
1.2% to 2,716 due to retirements. We also reduced our temporary workers substantially to increase
efficiency. To improve our work force’s productivity and welfare, we plan to selectively reduce our
total workforce further to 2,566 by 2009.
Out of our total 2,716 permanent employees in 2007, about 15% are university graduates while
about 6% are university graduates with engineering backgrounds, an improvement compared to
2006 figures when only 13% of our permanent employees were university graduates and only
4.4% were university graduates with engineering backgrounds. In line with our expansion plans,
we target 10% of our permanent employees having engineering degrees by 2009.
Training and Assessment

Spearheaded by our Learning and Assessment Unit, we continuously enhance our employees’
competencies and skills to improve overall productivity and performance. The unit’s activities in
2007 included among other things organizing leadership and technical competency development
programs, conducting benchmarking studies and coordinating internships at other mining
companies. The unit is also undertaking a feasibility study to implement an IT system that will
integrate assessment results, competency model, learning system, and talent management. In
2007, we spent Rp28 billion on employee education and training, an increase of 8% compared to
2006. This amount is 0.5% of Antam’s net profit and 4% of Antam’s employee cost. The average
training expense per employee was Rp9.8 million, an increase of 11% compared to 2006.

EMPLOYEES EDUCATION Employee Productivity

(%) Due to increased sales of our products, increased production of our most important products,
higher commodity prices and a smaller workforce, the productivity of our employees increased
7.11 0.04 2.00 5.96 in 2007. Compared to 2006, net profit per employee increased 241% to Rp1.8 billion per person, 59
13.00 2,00 6.74 operating profit per employee increased 188% to Rp2.4 billion per person, ferronickel production
4.66 per employee increased 33% to 6.5 tonnes nickel in ferronickel per person and saprolite production
per employee increased 100% to 2,365 wmt per person. Gold production per employee remained
2007
% relatively flat at 0.98 kg per person as the slight decrease of gold production was compensated by
the smaller workforce.
2005 2006 2007

60.49 Number of Employees 3,209 2,958 2,852
Operating Profit (Rp Million) / Employee 354 828 2,383
Master Degree Engineering 0.04
Master Degree Non Engineering 2.00
Net Profit (Rp Million) /Employee 262 527 1,799
Bachelor Degree Engineering 5.96 Saprolite Production (wmt)/Employee 1,062 1,181 2,365
Bachelor Degree Non Engineering 6.74 FeNi Production (Tons) / Employee 2.29 4.89 6.50
Associate Degree 4.66 Gold Production (Kg) / Employee 0.91 0.97 0.98
High School 60.49
Junior High School 13.00 Succession Planning

Elementary School 7.11 With the implementation of a performance based evaluation system in 2007, our succession
planning program to objectively select leaders for our strategic units and corporate departments is
expected to be better executed. Employees with superior managerial and leadership qualities will
be directed to fill-in strategic leadership positions, while those with superior technical qualities will
0.70 2.57
14.03 9.47 be developed as technical professionals and specialists.
6.63
Employees Welfare
7.52 Besides basic remuneration, we provide housing subsidies, transportation allowances, healthcare,
2010
% life insurance, remote site allowance, union membership and social insurance for all permanent
workers. Our total employee cost increased 13% to Rp726 billion in 2007. During the year, there
were no base salary increases. Employee annual year end bonuses also remained at maximum
of nine times of monthly base salaries. However, there was 4% increase in cost living adjustment
59.04
(COLA) across the board as well as other increases in healthcare services, allowances and other
Master Degree Engineering 0.70 indirect employee costs.
Master Degree Non Engineering 2.57
Bachelor Degree Engineering 9.47
Labor Relations
Bachelor Degree Non Engineering 6.63
Associate Degree
We have built strong relations with our labor in order to create a positive work atmosphere, to
7.52
High School 59.04
develop job security and to ensure the continuity of operations. We view the workers’ union as our
Junior High School 14.03 partner in terms of developing our human resources. The majority of our employees are members
Elementary School 0.00 of the Aneka Tambang Worker Union (Perpantam), the company’s largest labor union. Some
employees at Pomalaa are also members of the All Indonesian Workers Union (SPSI).
Pension Policy
We possess a defined benefits pension plan, which is managed by the Antam Pension Fund and
funded by contributions from the company and our employees. In 2007, our pension and other
post-retirements obligations amounted to Rp644 billion, a slight decrease from Rp688 billion in
2006. In addition to the pension program, the company also provides support for health services
after retirement for eligible retirees and their family members, which is managed by the Antam
Pensioners Health Foundation for those who joined us before 1 May 2005 and by an insurance
company for those joined after 1 May 2005. Total expenses related to post-employment such as
pension benefits, medical and other benefits amounted to Rp221 billion in 2007.

60
“Human Resources are valuable

our valuable
assets.
assets.
They are not costs.”

Exploration Detailed Corporate Financial Statements
and Reserves Description of Antam Risk Management Governance of Antam Sustainability Report and Notes Contact Us
61
Financial Review
Abridged Financial Statements
62
Total Consolidated Assets
63
Total Consolidated Liabilities
64
Capital Structure and Access to Capital
65
Cash Flows
66
Hedging Activities
67

ABRIDGED FINANCIAL STATEMENTS*
CONSOLIDATED BALANCE SHEETS AS AT 31 DECEMBER 2007 AND 2006

(Expressed in thousands of Rupiah) ALERT!
INVESTOR eet is
nce sh
la
2007 2006
Our ba , we are cash
tro ng ry
CURRENT ASSETS very s ave ve
Cash and cash equivalents 4,743,875,109 1,138,182,108 c h a n d we h We are
ri ebt.
el of d
low lev .
Trade receiveables - third parties - net 1,680,059,742 900,832,982
Inventories 1,319,084,300 947,389,575 d fo r growth
Prepaid taxes 79,547,752 125,056,053
poise
62
Total Current Assets 8,048,099,750 3,317,602,798
NON-CURRENT ASSETS
Fixed assets - net 3,022,621,934 3,346,302,819
Total Non-Current Assets 3,989,817,172 3,974,539,449
Total Assets 12,037,916,922 7,292,142,247
CURRENT LIABILITIES
Trade payables - third parties 76,242,814 123,976,561
Accrued expenses 452,007,002 331,881,431 As we generated higher revenues and profits,
Taxes payables 988,002,464 422,840,281 our cash position strengthened considerably.
Total Current Liabilities 1,798,816,747 1,179,515,758
NON-CURRENT LIABILITIES
Long term liabilities, net of current maturities We continued to reduce our debt in 2007.
- investment loans 700,145,667 1,070,373,333 However, to support our future growth we
Total Non-Current liabilities 1,474,300,753 1,829,784,347 are prepared to increase our debt, without
EQUITY sacrificing our healthy capital structure.
Total retained earnings 7,785,189,070 3,304,895,096
Total Equity 8,763,578,938 4,281,602,475
Total Liabilites AND Equity 12,037,916,922 7,292,142,247
CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED

31 DECEMBER 2007 AND 2006
(Expressed in thousands of Rupiah, except for basic earnings per share)
2007 2006
Net Sales 12,008,202,498 5,629,401,438
Cost of Sales (4,794,958,334) (2,887,935,682) We posted a tremendous increase in revenues
due to higher commodities prices and higher
GROSS PROFIT 7,213,244,164 2,741,465,756
sales volumes.
Operating Expenses (417,152,629) (337,772,143)
OPERATING INCOME 6,796,091,535 2,403,693,613
Other Income 505,557,104 (183,804,896)
PROFIT BEFORE INCOME TAX 7,301,648,639 2,219,888,717 Our net income increased 231% as our revenue
Income Tax Expense (2,169,528,312) (667,111,070) growth far exceeded our cost growth.
NET INCOME 5,132,460,443 1,552,777,307
Basic Earnings per share 538.08 162.79
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED

31 DECEMBER 2007 AND 2006
(Expressed in thousands of Rupiah)
2007 2006 With such a strong operating cashflow, we are
in a position to invest for a better future.
Cash Flow from Operating Activities
Receipts from customers 11,228,975,738 5,191,490,441
Payment to suppliers (4,276,517,673) (2,432,364,432)
Payments for tax (1.669.356.114) 573,816,628
Net Cash Provided from Operating Activities 4,835,907,373 1,711,300,253
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for fixed assets (197,164,105) (85,609,977)
Exploration and development expenditures (194,731,380) (120,386,019)
Dividends received 155,016,088 7,080,484
Net Cash Used in Investing Activities (262,350,439) (190,652,524)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term borrowings (461,822,712) (1,759,283,363)
Payments of dividends (621,110,923) (286,285,227)
Net Cash Used in Financing Activities (1,113,989,181) (962,567,950)
*These statements are highlights and not full financial statements.

Total Consolidated Assets

In 2007, our total consolidated assets increased significantly, growing 65% to Rp12,038 billion
mainly due to increased current assets which rose mostly due to much higher cash receipts. Our
non-current assets did not contribute to the total assets growth as no significant new fixed asset
investments were made and increases in deferred exploration and development expenditure and
deferred tax assets were offset by lower net fixed assets due to depreciation.
2005 2006 2007 63
Return on Average Assets 14% 23% 53%

Return on Average Equity 31% 42% 79%
Return on Average Investment* 32% 45% 82%
*EBIT/Avg. (LT Debt + Equity)
BALANCE SHEET PER DIVISION
Business Division 2005 2006 2007
Assets Assets ROA Assets Assets ROA

(Rp billion) (Rp billion) (%) (Rp billion) Growth (%) (%)
Nickel 4,549 4,716 54 5,501 16.65 131
Gold/Silver/Refinery 655 688 26 707 2.76 44
Others 105 104 (37.5) 212 103.85 (48)
Head Office* 1,094 1,785 (63) 5,618 215.09 (40)
TOTAL 6,403 7,292 21 12,038 65.11 43

*Antam accounts for all cash holdings at Head Office, yet no income is attributed to Head Office.
Current Assets
Our current assets increased 143% to Rp8,048 billion as cash and cash equivalents grew 317%
to Rp4,744 billion, accounting for 59% of total current assets. The increase of current assets
amounted to Rp4,730 billion due largely to the Rp3,606 increase of cash, which was 76% of the
current assets growth. Trade receivables and inventories also contributed to the growth. At the end
of 2007, the US dollar/Rupiah exchange rate increased 4% to Rp9,419 such that Rp146 billion of
the increase in cash was the effect of foreign exchange fluctuations. In 2006, the movement of the
exchange rate had the opposite effect.
With this strong cash position, we are ready to make growth investments. We placed Rp4,384
billion of cash in time deposits and dual currency deposits, 93% of it in US dollars and 7% in
Rupiah at several local and international banks with a range of annual interest rate deposits from
4.40% - 6.25% US dollars which were generally higher than in 2006 until rates were cut at the end
of the year. The trend was the same for Rupiah rates which ranged from 7.50% - 10.25%.
Under our policy, our short term investments have to consist of a minimum 30% in time deposits,
maximum 15% in dual currency deposits, swaps and repurchase agreements, maximum 15% in
mutual funds, maximum 10% in corporate bonds and maximum 15% in SBI (Indonesian Treasury
Bills). We are conservative regarding our financial management and in the last a couple of years, we
have only invested in time deposits and dual currency deposits as we view these two instruments
as the safest instruments although they might not provide the highest returns. Dual currency
deposits are reported as time deposits although in practice we usually place about 15% of our

short term investments in the form of dual currency deposits. While we consider SBIs as very safe,
the instrument is only available in Rupiah while substantially all of our revenues and cash are US
dollars. We believe our conservative approach, while limiting the upside, is the best approach in If you could tell Antam’s
view of potential downturns. management one thing,
what would that be?
As collected from Antam’s 2008
2005 2006 2007 2007 Change (%)
Current Ratio 2.7 2.8 4.5 60
64
Working Capital (billion) 1,308 2,138 6,249 192
The management
Trade receivables also contributed to the increase in current assets, climbing 86% to Rp1,680 has done a superb
billion due to higher receivables with Avarus AG (ferronickel agent in Europe), Pohang Iron & Steel job, especially in
Co (ferronickel), Raznoimport Nickel (UK) Limited (nickel ore) and Mitsui & Co (ferronickel). Our
achieving such
trade receivables included new customers such as Zhejiang Grand IMP and Sino Add (Singapore)
a great income
PTE Ltd. Our allowance for doubtful accounts was insignificant and we believe it is sufficient to
increase.
cover losses from the non-collection of the accounts.
Our inventories rose 39% to Rp1,319 billion due to the 64% increase in products inventory, which
are accounted for at the lower of cost or net realizable value. Ferronickel inventory rose 85%
to Rp457 billion inline with the higher cost of production of ferronickel. We also booked a 95%
increase in gold and silver inventories to Rp172 billion as we increased gold trading activities from
third parties, including from retail customers. Inventories of gold and silver were insured against
the risk of physical damage and theft under blanket policies.
Non-Current Assets
Our non-current assets slightly increased from Rp3,975 billion to Rp3,990 billion as increases in
deferred exploration, development and tax expenditures were not offset by decreased fixed assets
net of accumulated depreciation. We did not acquire significant new fixed assets as the significant
expenditures on the most recent expansion came to an end when commercial operations of FeNi
III began in the beginning of 2007. We increased our investments in shares of stock up 51% to
Rp55.8 billion consisting of Rp13.5 billion for PT Indonesia Chemical Alumina (Tayan Chemical
Grade Alumina project), Rp35.7 billion for PT Nusa Halmahera Minerals (gold mine operated
by Newcrest), Rp5.8 billion for PT Cibaliung Sumberdaya (gold mine under development by
Austindo) and Rp836 billion for the new investment in a 5% stake of PT Mega Citra Utama, a
mining exploration company. We consolidated the investment of a 60% stake in PT Borneo Edo
International, a mining license holder for bauxite exploration in West Kalimantan, which occurred
in September 2007. Our deferred exploration and development expenditure increased 30% to
Rp487 billion, deferred tax assets rose 86% to Rp309 billion and other non-current assets rose
227% to Rp85 billion.
Total Consolidated Liabilities

Our total consolidated liabilities increased 9% to Rp3,273 billion due to higher current liabilities
which rose 52% compared to 2006 to Rp1,799 billion or 55% of total consolidated liabilities. Due
partly to debt reduction, our non-current liabilities decreased 19% to Rp1,474 billion.
Current Liabilities
Our current liabilities increased to Rp1,799 billion mainly due to higher taxes payable, which
increased 134% to Rp988 billion and accrued expenses which rose 36% to Rp452 billion.
Taxes payable increased inline with higher taxable income. Accrued expenses increased due to

the significantly higher raw material costs and services fees. Accrued raw material purchases
amounted to Rp141 billion and we paid Rp131 billion for mining and transportation services fees.
Our total trade payables decreased 38% to Rp80 billion mainly due to the elimination of a payable
position for nickel ore bought from PT Inco Indonesia. Of total trade payables, 76% were owed in
Rupiah and 70% were due within 30 days.
The total current maturities of investment loans decreased 17% to Rp220 billion, consisting of 65
a reduction in the current maturity from PT Bank Central Asia Tbk (BCA) to Rp126 billion and a
reduction in the current maturity from PT Bank Mandiri (Persero) Tbk (Mandiri) to Rp94 billion.
On December 21st, 2006, we withdrew US$71 million from the BCA loan and US$50 million from
the Mandiri facility to help refinance the remainder of our outstanding USD bonds, issued in
2003. Both credit facilities have a repayment period of five years, starting from June 2007 until
December 2011. Each facility has an interest rate of SIBOR 3 months plus 1.5%. On February
2007, we entered an interest rate swap agreement with Barclay Capital for the Mandiri loan at a
fixed rate of 6.75% and with BCA for the BCA loan at fixed rate of 6.61%. The average interest
rate in 2007 was 6.83%.
Debt Ratios
2005 2006 2007 Comparison (%)
2006/2005 2007/2006
Net Debt/EBITDA 0.93 0.07 (0.50) (92.5) (807.2)
EBITDA/Financial Charges 8.53 13.49 99.26 58.1 653.8
Non-Current Liabilities
In 2007, due to debt repayment, we lowered our non current liabilities 19% to Rp1,474 billion. Our
long term debt decreased 35% to Rp700 billion. We lowered total debt 31% to Rp920 billion. For
the first time in many years we reduced our pension and other post-retirement obligations, which
“Our access to capital decreased 6% to Rp644 billion due to lower post-employment medical, and other post-retirement
and pension benefits.
has been good
Total Consolidated Stockholders’ Equity
and is improving. Our total consolidated stockholders’ equity rose 105% to Rp8,764 billion due to the 136% increase
in retained earnings to Rp7,785 billion. We had appropriated Rp2,653 billion of retained earnings.
Various banks have The significant increase in retained earnings is due to significantly higher net income generated by
increasing production and higher commodity prices.
expressed their
Capital Structure and Access to Capital
interests to provide The increase in stockholders’ equity, coupled with our debt repayments, resulted in the strengthening
of our debt to equity ratio to 10% in 2007 from 31% in 2006. As such, if necessary, we are
financial support for in the position to increase our debt to support our growth plans organically as well as through
acquisitions. Our access to capital has improved tremendously and many banks approached us
our growth plans.” offering debt financing support for our growth plans. We are studying their offers carefully. We will
not over-leverage ourselves and will maintain a healthy capital structure.

Cash Flows
Due to increased production and sales volumes and higher prices, our cash flows from operations
surged to a record high. Our nickel contained in ferronickel sales volumes increased 31% following ALERT! w
INVESTOR sh flo
the commencement of commercial operations of the third smelter, FeNi III, nickel ore sales volumes ting ca
era ue
Our op high d
increased 60% due to strong demand from China and gold sales increased 50% due to stable to a record ti o n
surged ased produc
s
production combined with increased trading activities. Due mostly to strong demand from China, to incre s volumes a
le
as well as muted global supply increases, the achieved selling prices for all of our main products and sa e r p ri ces.
high
well as
66 increased. The prices for nickel contained in ferronickel rose 56%, saprolite nickel ore rose 49%
and gold rose 15%.
With few capital expenditures, amounting to only Rp197 billion, we were very much cash flow
positive, as in 2006, and cash holdings grew as we completed our latest growth phase. Our free
cash flow in 2007 grew significantly to Rp4,639 billion. In 2005 we generated negative free cash
flows of Rp569 billion, as it had been since 2003, in line with expenditures made to more than
double ferronickel production capacity with the construction of FeNi III. With the significant 317%
build up in cash holdings to Rp4,744 billion, we are ready to pursue opportunities to enhance
shareholder value, such as making acquisitions, investing in expanding and upgrading operations,
paying dividends and further lowering debt.
Dividend Payout
2004 2005 2006 Change % We pay generous dividends. Our dividend
policy is to pay a minimum 30% and since
Payout Ratio 35% 34% 40% 18% our IPO, we have paid 39.4%.
Cash Dividend (Rp billion) 282.50 286.30 621.11 117%
Cash Dividend per share (Rp)* 29.62 30.01 65.12 117%
*Adjusted for the 5:1 stock split of July 2007.
Cash Flows From Operating Activities

In 2007, our net cash receipts from operations rose Rp3,990 billion, or 182% to Rp6,183 billion.
The increase is primarily due to the 116% increase in receipts from customers, which rose Rp5,191
billion to Rp11,229 billon. Our payments to suppliers increased Rp1,845 billion or 76% to Rp4,277
billion and payments to commissioners, directors and employees increased 48% to Rp793 billion.
The greater pace of increase for customer receipts compared to payments to suppliers and for
management and employees enhanced the rate of growth for net cash receipts.
Despite higher interest income and lower interest payments due to larger cash holdings and higher
US dollar interest rates, our net cash provided by operating activities did not increase at the same
pace of net cash receipts due to a significantly larger payment for tax. Our cash flow for interest
income rose 306% to Rp126 billion while interest payments, due to loan repayment, lowered 62%
to Rp78 billion. Our tax payments increased Rp1,095 billion or 191% to Rp1,669 billion, due to
tax paid on our much higher taxable income. Cash flows from operating activities rose 183% to
Rp4,834 billion.
Cash Flows Used In Investing Activities

Our cash flows used in investing activities increased 37% to Rp262 billion. The increase is
mainly due to higher acquisitions of property, plant and equipment as well as exploration and
development expenditure. In 2007, we spent Rp197 billion, an increase of 129% or Rp111 billion,
on acquisitions of property, plant and equipment, of which most were for maintenance at Pomalaa

ferronickel facilities and Pongkor gold mine. As well, we ramped up investment on exploration and
development 63% to Rp195 billion with the largest portion being spent on exploration drilling for
nickel at Sangaji and Pulau Obi, North Maluku. These increases were not offset by our dividend
income, related to our 17.5% stake in a gold company run by Newcrest Ltd called PT Nusa
Halmahera Minerals, which rose 2,114% to Rp155 billion.
Cash Flows Used in Financing Activities

In 2007 we made smaller, yet still significant, repayments of long term borrowings, which in total 67
decreased 74% to Rp462 billion. Our total long term debt decreased 35% to Rp700 billion. However,
due to a much larger dividend payment, our cash flows used in financing activities increased 16%
to Rp1,114 billion. In line with higher net income in 2006, our cash flows for payment of dividends
rose 117% to Rp621 billion.
CAPITAL EXPENDITURES AND FREE CASH FLOWS
2005 2006 2007 2007 Change

(Rp billion) (Rp billion) (Rp billion) (%)
As FeNi III began its commercial operations in
early 2007, we had few capital expenditures Operating Cash 742 1,711 4,836 183
during the year. Our free cash flow in 2007
therefore grew significantly. We are in the position Total Capital Expenditures 1,311 (47) 197 (519)
to enter our next growth phase to further improve
Free Cash Flow (569) 1,758 4,639 164
our future.
Hedging Activities
Our hedging activities are conducted to protect a portion of our budgeted revenues, according
to budgeted price assumptions and to an amount not exceeding 30% of the forecast annual
production of nickel, gold, and of monthly working capital.
We did not undertake any commodity hedging activities in 2007 in view of the high nickel and gold
prices during the year.
We conducted foreign currency hedging transactions to protect our working capital needs in 2007
as our main revenues are in US dollar while a large portion of our costs are in Rupiah. Under our
If you could tell Antam’s foreign currency hedging policy, we can hedge up to an amount not exceeding 30% of our monthly
management one thing, working capital requirements of around US$30-45 million a month, using derivative instruments
what would that be? which provide In The Money strike rates which are more attractive than the forward rates. However
Investor Perception Survey the strike rates are only valid as long as the spot rates do not trade at or below the pre-determined
knock-out rates upon maturity.
To improve We also purchased interest rate swaps to hedge our interest obligations by converting floating
rates to fixed rates.
performance
and increase
In 2007, most of our hedging transactions were favorable as the exchange rates fluctuated mostly
diversification
above the pre-determined knock-out rates upon maturity and interest rates fluctuated above the
in mining fixed rates. As a result, we booked Rp15 billion of gains due to hedging transactions.
commodities, do
not just focus on
gold and nickel.

68

69
Review of Operations:
Generating Higher Output
Detailed Production and Sales Table
70
Sales and Segment Information

71

71
Cost of Sales
74
Net Income
76
Cash Costs and Cost Reduction Program

77
Licensing
78
Performance Measurement and Outlook

78


Unit 2003 2004 2005 2006 2007 2007/2006
(%)
Production Volume
Ferronickel Ibs Ni 19,693,870 17,515,706 16,177,502 31,909,670 40,856,018 28
metric ton Ni 8,933 7,945 7,338 14,474 18,532 28 Production of nickel, Antam’s main commodity,
Nickel Ore reaches an all time high as FeNi III enters
• Saprolite wmt 3,306,733 3,152,420 3,408,252 3,493,961 6,744,383 93 the operational phase and nickel ore sales
• Limonite wmt 1,088,696 943,056 672,548 859,871 368,487 (57)
Total Nickel Ore wmt 4,395,429 4,095,476 4,080,800 4,353,832 7,112,870 63 increased inline with higher demand.
Gold t,oz 134,258 119,437 93,589 92,367 89,733 (3)
kg 4,176 3,715 2,911 2,873 2,791 (3)
Silver t,oz 918,525 887,050 791,051 767,631 775,669 1
kg 28,570 27,591 24,605 23,876 24,126 1
Bauxite wmt 1,262,705 1,330,827 1,441,899 1,501,937 1,251,147 (17)
Iron Sands wmt 245,409 89,664 21,901 - - -
Sales Volume
Exports
70 Ferronickel lbs Ni 19,550,570 17,390,501 15,397,366 29,518,382 39,072,480 32
metric ton Ni 8,855 7,888 6,984 13,389 17,723 32
Nickel Ore
• Saprolite wmt 2,244,434 2,546,339 3,025,841 3,375,466 6,463,977 91
• Limonite wmt 1,087,141 1,373,786 1,060,240 933,668 443,390 (53) Total nickel ore exports increased due to
Total Nickel Ore wmt 3,331,575 3,920,125 4,086,081 4,309,134 6,907,367 60 strong demand out of China.
Gold t.oz 66,872 51,278 38,201 46,876 120,405 157
kg 2,080 1,595 1,188 1,458 3,745 157
Silver t.oz 856,058 171,922 375,192 260,357 530,487 104
kg 26,627 5,347 11,670 8,098 16,500 104
Bauxite sales continue well past the planned
Bauxite wmt 1,093,965 1,325,559 1,617,566 1,536,542 975,009 (37)
Iron Sands wmt - 103,328 23,268 - - - closure of the Kijang mine due to strong
demand for the previously uneconomic ore.
Domestic Sales
Ferronickel lbs Ni 28,660 19,842 664 - - -
metric ton Ni 13 9 4 - - -
Gold t.oz 88,702 72,587 78,804 60,508 40,381 (33)
kg 2,759 2,258 2,451 1,882 1,256 (33)
Silver t.oz 356,833 670,576 583,634 416,899 335,943 (19)
kg 11,099 20,857 18,153 12,967 10,449 (19)
Iron Sands wmt 108,555 107,933 23,268 - - -
Sales Revenue
Total Exports million Rp 1,823,322 2,513,839 2,860,412 5,220,497 11,661,423 123
US$ ‘000 213,473 278,829 390,823 571,479 1,278,536 124
Total Antam Revenue million Rp 2,138,811 2,858,538 3,251,235 5,629,401 12,008,202 113
Note: Iron sands operations have been transferred to Antam’s subsidiary PT ARI. The contribution of iron sands is negligible to Antam.
Cash Cost, Production Cost, and Average Selling Price

Unit 2003 2004 2005 2006 2007 2006/2007 (%)
Cash Cost
Ferronickel US$/lb 3.16 3.35 3.91 4.40 5.55 26 FeNi cash costs did not decrease following
Nickel Ore the operation of FeNi III as Antam opted to
• Saprolite US$/wmt 13.94 15.12 14.80 20.15 20.32 1
• Limonite US$/wmt 4.91 7.32 7.44 8.67 11.26 30 buy more expensive ore feed from PT Inco
Gold US$/t.oz 175.50 183.46 252.94 283.93 383.10 35 to safeguard reserves.
Bauxite US$/wmt 9.73 8.00 8.48 10.32 13.44 30
Iron Sands Rp/wmt 117,924 333,044 - - - -
Production Cost
Ferronickel US$/Lb 3.37 3.63 4.30 6.00 6.99 17
Nickel Ore
• Saprolite US$/wmt 14.42 15.49 19.77 20.32 20.48 1
• Limonite US$/wmt 5.21 7.58 7.52 8.72 11.52 32
Gold US$/t.oz 235.29 259.27 336.35 375.36 481.74 28
Bauxite US$/wmt 10.31 8.23 8.74 10.83 13.90 28
Iron Sands Rp/wmt 124,683 350,718 - - - -
Avg. exchange rate Rp/US$ 8,504 8,935 9,712 9,167 9,136 -
Average Selling Price
Ferronickel US$/lb 4.06 6.23 6.45 10.12 16.16 60 The prices of all of our products increased.
Nickel Ore
• Saprolite US$/wmt 28.38 42.35 44.64 55.36 82.43 49
• Limonite US$/wmt 14.96 16.47 19.06 31.48 26.52 16
Gold US$/t.oz 364.32 411.97 446.14 611.59 702.63 15
Silver US$/t.oz 4.93 6.64 7.27 11.83 13.64 15
Bauxite US$/wmt 10.93 11.36 11.91 13.60 14.58
- 7
Iron Sands Rp/wmt 86,374 150,120 105,180 - - -
Note: Iron sands operations have been transferred to Antam’s subsidiary PT ARI. The contribution of iron sands is negligible to Antam.

SALES AND PRODUCTION
Ferronickel
18,532
17,723
(Ton Ni)
14,474
13,389
8,933
8,868
7,945
7,897
7,338
6,988
Production
Sales 71
03 04 05 06 07
Production increases following
the ramp up of FeNi III.
Saprolite (High Grade)

(wmt)
6,744,383
6,463,977
3,493,961
3,408,252
3,375,466
3,306,733
3,152,420
3,025,841
2,546,339
Sales and Segment Information

2,244,434
In 2007, inline with increased production of ferronickel and nickel ore, as well as with higher
commodities prices, sales grew by 113% to a record Rp12,008 billion from Rp5,629 billion in
2006. Ferronickel production rose 28% and accounted for 48% of our sales. Higher demand of
nickel ore boosted exports by 63% and contributed 41% of our sales. As revenue from nickel
grew, the nickel segment contributed 89% of our total sales in 2007, compared with 84% in 2006.
Production
Sales Total sales from the nickel segment amounted to Rp10,687 billion, up 126% compared to 2006.
03 04 05 06 07 Despite lower gold production due to lower grades, sales of gold increased 50% inline with gold
We increased ore exports,
thanks to demand for low
trading activities conducted by our Logam Mulia precious metals refinery. As with gold sales,
grade ore we would not sales of silver increased, and including income from Logam Mulia, revenue from the gold segment
process ourselves.
increased 68% to Rp1,163 billion. The nickel and gold segments made up 99% of total our sales.
Gold
(Kg) Production and Sales
Ferronickel
5,000
4,839
Production of ferronickel rose 28% to 18,532 tonnes of nickel contained in ferronickel as Antam
4,176
3,853
began commercial operation of the FeNi III smelter at the beginning of the year. Ferronickel
3,715
3,639
3,340
production also included 1,410 tonnes of toll smelting, conducted on our behalf by European and
2,911
2,873
2,791
Japanese companies. In 2007, our FeNi I and FeNi II smelters produced 4,946 tonnes and 6,861
tonnes, respectively. The higher outputs from both smelters were due to stable operations as well
high grade ore feed from PT Inco’s East Pomalaa deposit. We did not need to blend much of
Production PT Inco’s ore with our own ore as consumption from the FeNi III smelter was lower than expected.
Sales
Our FeNi III smelter produced 5,315 tonnes in 2007. From its commissioning period in 2006, the
03 04 05 06 07
Gold sales volumes jump due FeNi III smelter has produced 8,650 tonnes of nickel in ferronickel, and had already generated a
to trading activities.
significant return on the original US$153 million EPC cost.

In 2007, our ferronickel production was 7% lower than our target of 20,000 tonnes due to a metal
leak that occurred June 16th 2007. Due to the leak, Antam shut down the FeNi III smelter for partial
repairs for 3 months and switched the smelter back on at the end of August 2007. To ensure a
safe and stable operation, Antam plans to operate the smelter at 32MW, less than the maximum
power load of 42MW. Leaks and set backs are unfortunate but are normal during the ramp up
period of a new smelter. Once the optimal operational parameters have been determined Antam
may slowly raise the power level and output, thus increasing output in the years ahead above the
17,000 tonne target of 2008.
In 2007, we consumed 1,310,207 wmt of saprolite nickel ore as feed for our ferronickel smelters, at
an average ratio of 77 wmt of ore to one tonne of nickel contained in ferronickel. We used 325,781
72 wmt of saprolite from our own mines at Pomalaa and Halmahera Island and 984,426 wmt from
PT Inco’s East Pomalaa deposit.
Ferronickel sales in 2007 amounted to 17,723 tonnes of nickel contained in ferronickel. Our
ferronickel is sold as either high carbon, or low carbon ferronickel. High carbon ferronickel is
generally used for making 200 series stainless steel, which contains less nickel and is a lower
quality product and less resistant to corrosion, although it can also be mixed to produce higher
quality 300 series. European customers took 52% of sales while Korean and Taiwanese customers
accounted for 28% and 14% of volumes respectively. Ferronickel sales were lower than production
as Antam experienced difficulties in securing shipping cargo space, due to high costs and
availability of marine transportation. We sell our ferronickel CIF (cost, insurance and freight). As
well, ferronickel sales were lower due to softening demand in Europe, due to inventory destocking
activities undertaken by stainless steel producers, in their attempts to lower nickel prices which
reached an all time high in May 2007. European mills only began to enter the market to buy nickel
towards the end of 2007.
The price we charge for our ferronickel is based on the international London Metal Exchange daily
spot price. The normal duration of a shipment’s journey to Europe is about a month. For Asian
customers, the shipment period is shorter, with cargo arriving after 7 to 10 days. To support and
assist ferronickel to Europe, we use an agent, Avarus AG. The agent assists, among other things,
in arranging delivery from ports to buyers and arranging the necessary shipping documentation. If you could tell Antam’s
Currently, Europe is our largest market for ferronickel. management one thing,
what would that be?
As ferronickel sales volumes increased 32% and our average achieved selling price rose 60% to Investor Perception Survey
US$16.16 per pound, or US$35,627 per tonne, our ferronickel sales revenue increased by 113%
to Rp5,793 billion. The price was slightly lower than the average of the spot price on the LME, due
to our using a one month trailing average.
Be transparent
Nickel Ore
in the decisions,
In 2007 Antam ramped up nickel ore production to meet stronger demand, especially from China.
be more efficient,
Nickel ore production increased 63% to 7,112,870 wmt with nickel ore sales of 6,907,367 wmt.
avoid corruption
Around 51% of our nickel ore sales went to Chinese pig iron producers which used the ore as feed
for their blast furnaces to produce nickel contained in pig iron for sale to domestic stainless steel
(and emphasize
producers. Generally 3-5% nickel, NCPI is different from ferronickel, which is about 20% nickel. that to the lowest
We sold the low grade saprolite ore to the Chinese with the high grades going to our long term level in the
Japanese and Eastern European customers. Boosting ore sales to China is not contrary to our organisation).

SALES DESTINATION strategy of moving downstream into processing as we sold the Chinese the low grade saprolite
ore we would not otherwise have processed ourselves, as we prefer to use the high grade nickel
12 7
ore for ferronickel processing at Pomalaa.
2005 2006 With nickel ore sales of 6,907,367 wmt far exceeding our targeted range of 5.5-5.8 million wmt, and
% %
together with a higher average achieved selling price, nickel ore sales revenues increased 144% to
3 Rp4,894 billion. The average price of saprolite, which is sold FOB (free on board), increased 49%
88 93
to US$82.43 per wmt.
2007 In 2007, we held a tender for the additional 2,050,000 wmt of low grade nickel ore. Three Chinese
%
companies won the contracts. We initially expected nickel ore sales to reach 5.5 to 5.8 million
wmt, but due to strong demand out of China as nickel prices dramatically increased and in order 73
97
Export to offset lower ferronickel production due to the leak of FeNi III, we were able to exceed the top
Domestic end of our target by 19%.
The price of our nickel ore is calculated differently than our ferronickel. Although still based on the
LME spot price, our nickel ore prices also account for the moisture content and the grade. For
SALES BREAKDOWN
our long term Japanese customers, as well as our European customers, our nickel ore contracts
6 4
12 usually lasts for 3-4 years. The new Chinese contracts have a duration of one year. All of Antam’s
18 30
contracts are regularly rolled over. We meet with our customers each year to review sales volumes
2005 2006
as well as the grades and associated discount to LME. We have a representative office in Tokyo to
% %
support and assist nickel ore sales, as well as to act as a liaison office.
35
46 1 49 Gold
10
Inline with a 6% lower gold grade of 9.29 grams per ton (gpt) compared to 2006, and despite
48
3% higher gold ore production of 389,885 wmt, production of gold metal was 3% lower at 2,791
41 2007
% kg (89,733 troy oz). This was slightly lower than the target of 3,000kg. Gold sales volume rose
50% to 5,000 kg (160,754 troy oz) as our precious metals refinery unit, Logam Mulia, conducted
extensive gold trading. In 2007, 44% of gold sales volumes came from trading gold bought from
Feronickel Gold third parties, such as retail outlets and individuals. Although lower margins than selling our own
Nickel Ore Bauxite gold, the trading activities contributed to higher sales revenues. With higher volumes and a 15%
higher average achieved selling price of US$702.63 per troy ounce our gold revenues increased
72% to Rp1,034 billion.
REVENUE DENOMINATION A byproduct of the gold refining process, sales of silver increased 28% to 26,949 kg (866,430
1 troy oz) and generated Rp108 billion in revenue. The average selling price of silver rose 15% to
US$13.64 per troy ounce.
2005
%
2006
%
Revenue from precious metals refinery services for other gold companies, such as PT Nusa
Halmahera Minerals, increased 60% to Rp29 billion in 2007.
99 100 Bauxite
Demand for the low quality, high silica bauxite still remining at the nearly depleted Kijang mine
2007
% decreased in 2007. As such our bauxite production volume of 1,251,247 wmt did not quite make
the target of 1.5 million wmt. Bauxite sales decreased 37% to 975,009 wmt, generating Rp130
billion in sales revenue. The price of our bauxite, with is sold FOB, rose 7% to US$14.58 per wmt,
100 although almost half of the other bauxite producers. Not expected to have been producing past
US$ Portion 2005, due to tight supplies and strong demand, the Kijang mine continues to operate by selling
IDR Portion

what a few years ago was uneconomical ore. We are currently revising our mine closure and post COST, SALES AND PRICE
mining programs, which we expect to commence in the next few years. Ferronickel
US$/lb
16.16
16
Cost of Sales
Inline with increased production as well as higher materials costs, our cost of sales increased 14
66% to Rp4,795 billion. The top five components of our cost of sales, materials used, ore mining
service, fuels, labor costs and depreciation, accounted for 74% of our total cost of production. 12
10.12
10
Materials Used
Our cost of materials used accounted for 27% of the total cost of production. In 2007, the cost of
8
materials used increased 126% to Rp1,379 billion as Antam ramped up ferronickel production with 6.99
6.23
74 the start of commercial operations of the FeNi III smelter. The largest component of materials used 6 6.45
6.00
5.55
is ore feed for our ferronickel smelters. Another important consumable is anthracite/coal which is
4.06 4.30
used as a reductor in the furnace. Limestone, which is used to reduce the acidity of the calcine, 4
3.37
3.63 4.40
3.91
is now a much smaller component of materials used. Materials used also includes bricks, spare 3.16 3.35
parts and equipment. 2
0
In 2007, 94% of our ferronickel ore feed came from the PT Inco East Pomalaa deposit. Antam 03 04 05 06 07
annually sources 1,000,000 wmt of saprolite nickel ore (+/- 10%) from PT Inco. The agreement
Saprolite (High Grade)
lasts until mid-2008 and Antam plans to extend the agreement. As the price of PT Inco’s ore is US$/wmt 82.43
correlated to the international LME spot price, the price of PT Inco’s ore increased significantly 80
in 2007, thereby pushing our ferronickel cash cost higher than expected. Given the Inco ore is
70
much more expenisve than the cost of producing our own ore, if we used more ore feed from our
own nickel mines, the ferronickel cash cost would have been much lower. However, we decided 60
to use the ore feed from PT Inco in order to conserve our own saprolite nickel reserves, to lower 55.36
the cost of ore mining services and to free up extraction capacity to increase exports to meet 50
strong demand from China for low grade ore we would not process ourselves. Also, even with the 42.35
44.64
correlation to the LME spot price, given ore is only one cost component of ferronickel production, 40
due to higher LME prices the margins on our ferronickel continued to widen throughout 2007
30
despite using PT Inco’s ore. The extra revenue earned from using the freed up extraction capacity 28.38
to boost ore exports to China more than offset the increased ferronickel production cost. Although 19.77 20.32 20.48
20 20.32
20.15
dissapointing given we had hoped to deliver lower cash costs following the commercial operations 14.42 15.49
13.94 15.12 14.80
of FeNi III, we feel buying ore from PT Inco is the best decision. In 2007, the cost of feronickel 10
ore feed from our Pomalaa mine amounted to US$12 per wmt while the cost of sourcing ore feed
from our Mornopo mine amounted to $23 per wmt. The ore from Mornopo is more expensive as it 0
03 04 05 06 07
includes the cost of barging the ore from North Maluku to Southeast Sulawesi. In 2007, the cost of
Gold
transporting ore to Pomalaa for ore feed amounted to Rp8 billion. The consolidated average cost US$/t.oz
of ore feed from our mines and PT Inco’s East Pomalaa deposit reached US$55 per wmt compared 702.63
700
with US$26 per wmt in 2006. 611.59
600
500 481.74
Ore mining fees
411.97 446.14
Inline with Antam’s plans to move downstream into processing, and as a cost saving measure, we 400 364.32 383.10
336.35
375.36
outsource most of our ore extraction to mining contractors. In 2007, our ore mining fees increased 300
235.29
81% to Rp863 billion due to significantly higher nickel ore production, as well as due to higher 259.27 252.94
283.93
200
contractor costs. Ore mining fees accounted for 17% of the total cost of production. The largest 175.50 183.46
component of ore mining services was for nickel ore mining, which accounted for 90% of the total 100
ore mining services cost, followed by bauxite and gold mining fees which accounted for 9% and 0
03 04 05 06 07
1% of the total cost, respectively. Contractor costs increased due to generally rising costs and
Average Selling Price Production Cost
Cash Cost

NET MARGIN Royalties Payable to the Government

(%)
43 Tariff Payable from Sales Revenue Base Calculation
Saprolitic Nickel Ore 5% metal
Limonitic Nickel Ore 4% metal
Gold 3.75% metal

28 28
26
Silver 3.25% metal
Iron Sands 3.75% concentrate
Bauxite 3.75% washed bauxite

11
75
higher fuel prices. Ore mining services would have been higher if we had not sourced most of our
ore feed from PT Inco. Some of Antam’s contractors are related to Antam in that they are owned
03 04 05 06 07 by Antam’s Pension Fund. However, the prices for their services are contracted and determined at
A relatively lower increase of an arm’s length basis, and are comparable to Antam’s other non-related contractors.
Antam’s cost of sales boosted
Antam’s net margin to 43%.
Fuel
Inline with higher nickel contained ferronickel production, as well as due to higher international
fuel prices, our fuel cost increased 23% to Rp636 billion and contributed 12% to our cost of
production. Around 98% of our fuel consumption was attributed to the ferronickel operation at
Pomalaa. In 2007, the cost of electricity to generate power for the ferronickel operation amounted
to US 11 cents per kilowatt hour (KWH), an increase of 22% compared to the electricity cost in
2006 of US 9 cents per KWH. Higher fuel costs were also due to higher consumption of coal which
increased 24%. Coal is burned under the rotary kiln to pre-heat the treated ore (calcine) before it
is introduced to the smelter.
In order to produce 1 tonne of nickel in ferronickel, we will normally require about 9,000 litres
of fuel.
Since 2005 we have been switching our main source of diesel fuel from the higher priced Industrial
Diesel Oil (IDO) to the lower priced Marine Fuel Oil (MFO). In 2007, Antam used around 20,000
litres of IDO and around 136,000 litres of MFO. IDO was less than 13% of our overall diesel fuel
consumption in 2007. The main strategy to lower our production costs is to convert to a less
expensive fuel such as coal, hydro or natural gas.
Labor Costs
Labor costs, which include salaries, wages, bonuses and employee benefits, increased 9% to
ALERT! ant Rp484 billion and accounted for 9% of our total cost of production. The increase is largely due to
INVESTOR nific
ects sig
exp e
Antam ars tim increased salaries which took effect in mid-2006 despite the lower number of employees of 2,716
c ti o n in 2 ye le s s
du a in 2007 compared to 2,749 in 2006. The largest component of labor costs was health benefits for
cost re ches to rce
m swit u
as Anta e energy so retirees which accounted for 21% of the labor cost, followed by bonus payments and remote area
iv
expens
incentives which were 20% and 10% of the labor cost respectively.
Depreciation
Inline with the start of commercial operations of FeNi III in early 2007, depreciation charges
increased 7% to Rp455 billion. Depreciation at our ferronickel facilities in Pomalaa contributed

78% of our total depreciation cost. Depreciation at Pongkor facilities was the second largest
component attributing to 21% of our total depreciation costs in 2007.
If you could tell Antam’s
management one thing,
Transportation
what would that be?
Our transportation cost amounted to Rp123 billion, 45% higher compared to 2006 inline with higher As collected from Antam’s 2008
ore exports and higher fuel prices. Ore transportation contributed 55% of the total transportation
cost while ore loading accounted for 41%. The transportation cost includes costs associated with
the shipment of ore, ore loading, machinery mobilisation, as well as costs associated with logistics
of loading and unloading. Antam does not include the cost of transporting ore feed to Pomalaa in
Antam’s
the transportation cost. The cost of transporting ore feed is included in materials used.
management is
quite cooperative
76 Toll Smelting Sevices
Our toll smelting services, which accounted for 6% of Antam’s cost of production, increased
with the public.
1,624% to Rp319 billion in 2007. We increased toll smelting to compensate for the loss of
We expect the
production due to the June 2007 leak from FeNi III and subsequent reduced power load at FeNi III management
once it resumed operation on August 26th, 2007 after partial repairs. In 2007, we conducted toll to keep sharing
smelting with Pamco Japan as well as via our agent, Avarus AG in Europe. For toll smelting, we information
ship our nickel ore to third party smelters to be processed into ferronickel and then distributed to and all revenue
our customers. We pay the cost associated with toll smelting which includes, among other things, projections of
refining charges, freight, and insurance. In 2007, there was not much smelting capacity available Antam.
due to the strong demand for nickel. As such on certain occassions we also had to give the toll
smelter a share of the profit from the sale of the ferronickel.
Gross Profit
Despite the higher costs of sales, our gross profit increased 163% to Rp7,213 billion as the growth
of our sales outpaced the increase in cost of sales. Our gross margin widened 23% to 60% in 2007
from 49% in 2006.
Operating Expenses and Profit

Our operating expenses rose 24% to Rp417 billion, and accounted for 8% of our total costs (cost
of sales plus operating expenses). The increase is mainly due to the 18% increase in general and
administrative expenses to Rp348 billion. The largest component of general and administrative
expenses was salaries which increased 23% to Rp209 billion and accounted for 60% of the total
general and administrative expenses.
Our operating profit increased 183% to Rp6,796 billion, which resulted in a significant jump of
operating margin to 57% in 2007 from 43% in 2006.
Other Income and Net Income

In 2007, Antam booked other income of Rp506 billion compared to other expenses of Rp184
billion in 2006 due to higher interest income, higher dividend income, and lower interest expenses.
Antam generated interest income of Rp126 billion, a 301% increase over 2006, as our cash position
increased 317% to Rp4,744 billion. Our dividend income increased 117% to Rp140 billion due to
increased profits of PT Nusa Halmahera Minerals (NHM), our gold joint venture with Newcrest Ltd.
Due to a larger US dollar cash position, the repayment of our US dollar bonds, and a weaker Rupiah,
we booked a foreign exchange gain of Rp181 billion as opposed to Rp58 billion loss in 2006.

Antam received settlements for claims made for compensation due to the late delivery of FeNi III
from Mitsui & Co., Ltd and Kawasaki Heavy Industries, Ltd for Rp 78 billion. Antam also received
a Rp8 billion settlement for insurance claims related to the 2005 breakdown of FeNi II.
In 2007, Antam generated net income of Rp5,132 billion (US$562 million), a significant 230% jump
over our net income in 2006. As a result, our net profit margin also widened significantly to 43%
in 2007 from 28% in 2006.
Cash Cost and Cost Reduction Program

The cash costs of production increased for all of our products due to higher materials, labor and
transportation costs, similar to other players in the industry. Despite increases in our cash costs,
Antam remained a competitive low cost producer - with the exception of ferronickel. 77
Our ferronickel cash cost increased 26% to US$5.55 per pound largely due to the higher price
of nickel ore feed sourced from PT Inco and higher fuel prices. The largest component of
ferronickel cash cost was materials with a 58% contribution, followed by depreciation with a
21% contribution. The largest component of the materials cost was fuel and PT Inco’s ore, each
contributing 43%. The third largest component of the ferronickel materials cost was consumables
with an 8% contribution.
2007 NICKEL INDUSTRY COST An international metal consultant based in London estimated that the average world’s nickel cash
CURVE (2007$) cost stood at US$4.15 per pound in 2007. The cash cost of the lowest ferronickel producer at around
14.0
US$2.10 per pound with the cash cost of the highest ferronickel producer at close to US$7.00 per
12.0
pound. To lower the ferronickel cash cost, we plan to convert to a less expensive fuel such as
PT Aneka - Pomalaa
10.0
8.0
hydropower, coal or natural gas. Currently studies are underway to find the best energy source for
Antam and management hopes a decision can be made soon. At the end of 2007, coal was the
C1 Cash Cost ($/lb Ni)
6.0
“front runner” in terms of which fuel Antam would convert to. Studies were coming to an end on
4.0
2.0
0.0 a process called a Smart Predictive Line Controller, by Hatch Ltd, which would make using coal
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000
-2.0
suitable for the demanding high energy ferronickel smelters.
-4.0
-6.0
Copyright Brook Hunt 2008
Production (kt Ni)
Both our limonite and bauxite cash costs increased 30% to US$11.26 per wmt and US$13.44 per
wmt respectively mainly due to lower production in 2007 which resulted in higher cost per unit as
well as due to higher ore mining costs. Our saprolite cash cost increased slightly to US$20.32 per
wmt. Our gold cash cost, which is not offset with any “silver credits” increased 35% to US$383.10
per ounce due to higher fuel prices. Our silver is produced as a byproduct of the gold production
process and sold to silversmiths in Indonesia.
As a first step in lowering our ferronickel cash cost, in 2007 Antam signed a power purchase
agreement with PT Tamboli Energy (Tamboli) for the supply of 15MW peak load capacity of
electricity to our Pomalaa ferronickel facilities (representing about 15% of the power required
to produce ferronickel at full capacity) from Tamboli’s run-of-river hydropower plant. Following
the commencement of the hydropower purchase in 2009, it is expected we could lower the
ferronickel power cost by up to 8-10% which will result in a savings of up to 3-4% of our
ferronickel cash cost.

Licensing
From 1998 to 2000, there was a change on the political landscape, which brought in new legislation,
which is generally non-conducive to mining. Since the beginning of 1998, Indonesia has been If you could tell Antam’s
going through a major transition from a strong, centrally controlled government to one of greater management one thing,
what would that be?
regional autonomy and decentralized government. This creates a lot of uncertainty and risk as As collected from Antam’s 2008
certain policies overlap and are difficult to understand and old legislation needs to be updated.
Based on a recent Indonesia mining industry survey the top areas for improvement in the mining
industry are the conflicts between mining operations and forestry regulations as well as duplication
and contradictions between central and regional government regulations.
Antam has been
For Antam, similar with other mining companies, there is an increasing trend of challenges in
performing well. I
relation to mining licenses. Unlike past years, the recent boom in the commodities prices has
think there is still
78
enticed many new players to come into the market, hence making it more competitive in obtaining much room for
mining licenses. We view that such challenges are manageable as we continue to work closely with improvement. One
the local governments and surrounding communities to ensure a close and good relationship. area that I think
needs attention
Performance Measurement and Outlook is the quality of
Antam uses production volumes as the key measurement of performance. As opposed to the work force. I
commodity or fuel prices, production volumes are the most controllable by management. Sales believe this needs
volumes, meanwhile, are generally a function of production volumes. The company is considered to to be reviewed to
be performing well if it meets or exceeds production targets. In 2007, nickel contained in ferronickel
improve efficiency.
production amounted to 17,122 tonnes, or 18,532 tonnes including toll smelting, short of the internal
If the costs could
target of 20,000 tonnes. After FeNi III leaked in June 2007 and went down for repairs, we revised our
be reduced, Antam
target to 16,000 tonnes. Meanwhile, a surge in nickel ore demand from China pushed our nickel ore
production to 7.1 million wmt, exceeding our target of 5.85 million wmt. Gold production, however,
will become one
was slightly below the target of 2,980 tons, achieving only 2,791 tons. Due to lower demand, bauxite
of the lowest cost
production amounted to 1.25 million wmt, also lower than the internal target of 1.5 million wmt. producers.
For 2008, we expect ferronickel production to reach 17,000 tonnes of nickel contained ferronickel.
Depending on demand from China, we expect nickel ore production to reach around 6 million wmt,
while our gold production is expected to reach 2,980kg.

79
Investing for a Better Future

Our Future Targets
80

81
Alumina
81
Nickel
82
Iron, Nickel Contained in Pig Iron

83
Acquisitive Growth Projects

83
Capital Expenditure Plans

84

Given that Antam has just completed a growth phase, culminating in the switch on of our new
smelter FeNi III in January 2007 and the subsequent ramp up, with minor setbacks, of FeNi III, and
ALERT! n
in combination with the likelihood of softer annual average nickel prices, the outlook for 2008 is INVESTORa great positiog
now in y stron
that Antam’s revenues and profits will not reach the same pace of growth as in 2007, if there is any We are supported b huge
to gro w , e and
rmanc
growth at all. Indeed, our revenues may decrease in 2008. l p e rf o ep its
o s
financia nd bauxite d
e l a
nick
However, instead of volume growth, 2008 will be about preparing for and investing in the next
phase of growth. After accumulating a large cash position by the end of 2007, which grew 317%
to Rp4,744 billion (over US$521 million), thanks in part to the extra nickel volumes provided by FeNi
III, Antam is ready to invest for a better future. We have huge reserves of nickel and bauxite, many
thousands of hectares of licensed exploration and excavation properties throughout Indonesia
and with well planned and well executed organic and acquisitive investments and projects we will
create significant value from our assets in the years to come.
80 Our Future Targets: Bigger and Better, Diversified and Sustainable

We are often asked about specific targets we are aiming for in the next one, three or five years.
In general, we can say in our pursuit of creating maximum shareholder value, we are constantly
striving to become bigger, better, more diversified and sustainable. Please see the Letter from
Board of Directors and the Detailed Description sections for more discussion on our strategy. We
feel it is slightly reckless to give anything more than our volume targets beyond the year ahead.
We make forecasts for commodities and fuel prices. Therefore, while we forecast expected
revenues, profits and margins for the year ahead, we do not have specific targets. We take
this approach as the mining business is a complicated one, with many moving and sometimes
uncontrollable parts.
While we do not have a specific leveraging target, we will always seek to minimize our debt
obligations. We do not have specific return on equity target, but we will not invest if the ROE
is lower than 15% or lower than our Weighted Average Cost of Capital. While we do not have
a specific target, we will always endeavor to achieve the lowest WACC possible, so as to lower
our hurdle rate. We do not have a specific target as regards our market capitalization but we
will always attempt to inform the market accurately and in a timely manner so that our valuation
reflects our true value as accurately as possible.

Product 2007 Actual 2007 Target 2008 Target % Change
Nickel contained in 18,532 tonnes 20,000 tonnes 17,000 tonnes - 8%
Ferronickel
Gold 2,791 kg 3,000 kg 2,980 kg + 7%
*in general Antam sells what it produces. However, for nickel ore Antam buys higher quality ore feed from a third party located closer to
the FeNi facility. For gold, Antam sells double what it produces through low margin trading activities.

Organic Growth Projects – Extracting Maximum Value from Our Existing Reserves
It is our organic projects that will create significant value in the next three to five years. Although
not valued by most of our shareholders as we did not have specific capital expenditure plans by
the end of 2007, we believe the organic development of our vast reserves with various projects
has tremendous potential and real progress was made in 2007 towards making these projects
become a reality.
ALUMINA – Maximizing Value from our Bauxite Reserves

Chemical Grade Alumina
PT Indonesia Chemical Alumina (Antam: 49%), Tayan, West Kalimantan
PT Indonesia Chemical Alumina (“ICA”) is a joint venture company established in March 2007
to study the feasibility of building a chemical grade alumina plant at Tayan, West Kalimantan.
Chemical grade alumina is about 10% of the overall alumina market and is used for many industrial
and commercial purposes such as toothpaste, ceramics and high-density disks. The formation of
the joint venture company follows the signing of a joint venture agreement in March 2006. The
81
JVA followed many years of negotiations, which were made more difficult due to the tremendous
political and economic challenges Indonesia went through following the economic crisis and
downfall of Suharto in 1998. Antam’s share in this project is 49% with an option to increase its
ownership to 51% in the future while the other three partners own the remaining 51%, and consist
of Showa Denko KK (SDK) of Japan 30%, Straits Trading Amalgamated Resources Private Limited
of Singapore (STAR) 15% and Marubeni Corporation of Japan 6%.
During 2007, ICA continued to negotiate with sponsors and related parties in terms of shareholder
structure and financing. ICA also worked to update a bankable feasibility study (BFS) conducted
by Mizuho in 2003 and to finalize the selection of the Engineering, Procurement and Construction
(EPC) contractor, including scope of work, project costs and cost distribution. The original BFS
estimated annual output of 300,000 tonnes of chemical grade alumina, a project cost of around
$220-$250 million and a project internal rate of return of over 15%. Due to higher costs since 2003,
the estimated project cost will escalate; although it is expected ICA can still make a satisfactory
return given that alumina prices have also risen. The Japan Bank for International Cooperation
(JBIC) is expected to finance the project. Finalizing the loan agreement process will heavily depend
on finalizing the EPC selection, of which Kawasaki was a front-runner.
Field work in 2007 and early 2008 included completion of the road access from the jetty to the
alumina plant site, infrastructure land clearance and construction of the temporary office and
base camp. Upcoming work includes preparation of the land, jetty, administration building and
washing plant, road access opening, relocation and mine land clearance. We hope ICA will begin
production in late 2010 or early 2011.

Smelter Grade Alumina

Antam has for many years studied the idea of using a portion of its bauxite to develop a smelter
grade, or metallurgical grade, alumina facility. SGA is used to make aluminum and is much more
of a commodity than CGA. Whereas SGA is easier to market, CGA has higher margins and lower
capital costs. However, CGA is a niche market requiring specialized knowledge. Given Antam had
good partners for CGA and the exorbitant scale and costs once thought necessary to develop
SGA, we always focused on developing our bauxite reserves by producing CGA.

SGA Bintan Project, Bintan Island with Chinese Companies
With the higher prices and strong demand, in 2006, it began to look feasible to also build an
SGA facility. We considered building on Bintan Island with domestic license holders and Chinese
offtakers and partners, such as Chalco and Xinfa. The plan to build on Bintan fell through when we
felt our partners might be more interested in exporting the bauxite than in building an SGA facility
in Indonesia. Antam’s Kijang bauxite mine is located on Bintan Island and was meant to have been
82 shut down many years ago. The high demand from China for even the low quality bauxite meant
Antam could delay shutting down the facility. However, this ore, and the ore of surrounding license
holders was deemed to not be feasible for an SGA facility.
SGA Mempawah Project, West Kalimantan with Hangzhou Jinjiang Group of China
As Antam did not continue the plan with Xinfa, the Smelter Grade Alumina development has moved
to West Kalimantan. At Mempawah, we began an SGA project with a new partner, Hangzhou
Jinjiang Group, China. Antam aims for about 55% ownership of the project. The initial estimated
cost before feasibility study is around US$800 million – US$1 billion and the plant may process one
million tonnes of SGA per year. Antam expects the Bankable Feasibility Study will be completed
in 2008.
SGA Munggu Pasir Project, West Kalimantan with UC Rusal of Russia

In September of 2007 we signed a Heads of Agreement with UC Rusal, Russia’s largest aluminum
company, to explore possibilities to develop bauxite deposits and build a SGA processing plant
in West Kalimantan, Indonesia. Following the outcome of a feasibility study, the proposed project
may process 3.6 million wet metric tons (wmt) of washed bauxite per year into 1.2 million tonnes of
SGA per year. The initial estimated project cost may be about US$1.2– US$1.5 billion and Antam
is likely to take a 49% stake in this project with UC Rusal owning the remaining 51%. Feasibility
studies will be conducted to determine the investment cost, location, technology, environment and
other important aspects prior to the initial phase of development.
NICKEL – Maximizing Value from our Nickel Reserves

Pearl Nickel Project, Buli, Halmahera, North Maluku, with BHP Billiton
Although the next phase of organic growth will be from alumina, additional nickel output is still
very much apart of Antam’s future. The Pearl project is the name given to the investigation being
conducted by Antam and BHP Billiton to jointly develop Antam’s extensive nickel laterite resources
at Buli. The alliance, formalized by a Heads of Agreement signed in February 2007, will investigate
the development of pyrometallurgical and hydrometallurgical processing routes for the Buli deposit
on Halmahera Island and other ore bodies.

This move is in line with our strategy to move into higher technology and downstream metals
processing activities. This strategic alliance with BHP Billiton is also expected to mitigate the
cost and risk of developing mineral deposits. In 2007 we moved towards the formation of a joint
venture company for the alliance. Antam and BHP Billiton expect the joint venture agreement will
be completed in 2008.
IRON, NCPI – Maximizing Value from Low Grade Ore with a Blast Furnace
In 2006 we began to get excited about the prospect of extracting iron from our low grade nickel
reserves at Obi Island, which has a high iron content, and began a joint investigation with an
Eastern European firm. The project, called the Obi Island Iron Cap project, was subsequently
deemed unfeasible. With prices rising higher and with the advent of Chinese production of nickel
contained in pig iron (NCPI), we shifted our development focus. In 2007, demand from China for
low grade nickel ore surged as pig iron producers began to use their blast furnaces to make NCPI
rather than just pig iron. NCPI contains about 3-5% nickel, while ferronickel is about 20% nickel.
Although inexpensive and easy to build or convert and not requiring a power plant, the marginal 83
cost of production was still high due the largest cost component, that of ore transportation. For
this reason we began to look for ways to build our own blast furnace next to our mine site at Obi
and improve the efficiency by effectively eliminating the ore transportation costs.
Obi NCPI Project, Obi Island, North Maluku with Tsingshan

In October 2007, we signed an agreement with Tsingshan Holding Group Co. Ltd of China to
conduct a feasibility study of jointly developing an integrated stainless steel facility at Antam’s
laterite ore concession at Obi Island, North Maluku, Indonesia. The study will consider a project
which consists of a power plant, an NCPI (or ferronickel) plant and a stainless steel plant and will
determine the capacity and the investment amount of the facility. Antam and Tsingshan will form
a consortium to conduct the feasibility study, to apply for mining permits and prepare the ancillary
agreements. The cost of the feasibility study and the other preparatory work will not exceed US$2
million. Under the agreement, a joint venture company will only be incorporated upon satisfactory
result of the feasibility study, which will have to be completed by August 2008.
Acquisitive Growth Projects – Diversifying Our Assets and Replenishing Gold

With the large cash position that we accumulated at the end of 2007 and with more substantial
free cash expected, we will make acquisitions to grow and diversify. In 2007 we appointed
Macquarie to assist us, among other things, in determining the best acquisitions. Our acquisition
targets were focused on gold, in view of the diminishing reserves of our Pongkor gold mine but
also on diversifying away from nickel, which following the expansion accounted for 89% of
revenues in 2007.

Takeover Attempt of Herald Resources Ltd – Owner of Lead/Zinc in Sumatra
At the end of December 2007, we decided we would make a counter bid to takeover an ASX-
listed company called Herald Resources Ltd, from Australia, whose biggest asset was its 80%
ownership of PT Dairi Prima Mineral, a lead/zinc project in Indonesia. Herald has for many years
been our partner in PT Dairi Prima Mineral (note: the project is explained in more detail in the
Minority Stake JV section of this report), of which we had 20%. However, we decided we could

create more value by partnering with China’s Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. and
so made a joint bid with Zhongjin to takeover Herald. Zhongjin had for forty years successfully run
a lower grade, and deeper mine in South China, compared to the mine at Anjing Hitam that Dairi management one thing,
Prima is developing. As of April 2008, the takeover process was still underway. what would that be?
Bauxite Reserves Acquisitions

PT Borneo Edo International (Antam: 60%) and PT Mega Citra Utama (Antam: 80%)
Antam continues to explore potential reserves and resources in Indonesia. Due to regional autonomy Maintain high
we experienced increased domestic competition for mineral prospects. As such, during 2007 and quality products.
early 2008, Antam conducted acquisitions of two exploration stage companies, PT Borneo Edo Perform
International (“BEI”) and PT Mega Citra Utama (“MCU”) in West Kalimantan with ownership of expansions
60% and 80%, respectively. Both companies hold mining licenses for bauxite exploration with carefully. Give
interesting prospects. We will finalize legal documentation requirements and conduct detailed dividends from
exploration activities. unused cash.
84
Capital Expenditure Plans
Antam’s capital expenditures in 2007 were minimal and mostly for routine expenditures. Antam
spent Rp197 billion for the nickel division and Rp95 billion was spent on the gold division. Antam
had budgeted Rp931 billion for capital expenditures in 2007, but many of the development
expenditures were not realized or postponed.
In 2008, Antam has budgeted Rp2.5 trillion, or US$280 million for capital expenditures. Of that
amount, Rp423 billion will be for routine expenditures, Rp1.7 trillion for development projects,
Rp100 billion for deferred expenditures and Rp318.5 billion for strategic alliances. The actual
amount spent will vary depending upon the progress of the development projects.
If Antam’s joint takeover bid of Herald is successful, Antam will spend much more than the $30
million allocated for acquistions. Antam and its partner have made an offer for Herald via a joint
venture called Tango Mining (Antam 40%) which values the company at just over US$500 million.

Capital Expenditures (in billions of Rupiah)

Antam’s capex plans Routine Capex Rp423 (US$46.5m)
Nickel division Rp258

are subject to change Gold division Rp127
and do not include the Precious Metals Refinery Rp8
Geomin (exploration) Rp20
possible investment Head Office Rp11
Bauxite division Rp0.5

for the takeover of Development Capex Rp1,697 (US$186m)
Optimalization of FeNi III Rp170

Herald Resources Ltd, Basic design DC-Furnace Rp10
nor the possible gold Tapunopaka Project Rp12
Development of Tapunopaka nickel mine Rp77
acquisition. Nickel contained in Pig Iron Project, Mandiodo Rp308

85
Tayan Chemical Grade Alumina Rp174
Mempawah Smelter Grade Alumina (West Kalimantan) Rp83
Antam Nickel Joint Venture, Pearl Project (FeNi IV/Hydromet) Rp325
Obi Island Mine Development Rp106
Energy Alternative (one of hydropower, natural gas or coal) Rp124
Development of Mempawah bauxite mine Rp7
Development of Pakal Island nickel mine Rp203
Development of Mandiodo nickel mine Rp8
Sponge Iron Project Rp81
IT development Rp9
Deferred Expenditures Rp100 billion (US$11m)
Strategic Alliances Rp318.5 (US$35m)
Capital contribution to Cibaliung gold project Rp45.5
Acquisition of mining companies Rp273

TOTAL Rp2,538 (US$280m)

Our Projects: “Just a Bunch of MOU’s?”

Project Product Location Partner(s) Antam %
PT Indonesia Chemical Chemical Grade Tayan, West Kalimantan Marubeni, Showa Denko 49% with option to
Alumina Alumina (Japanese) and STAR increase to 51%
(Singapore)
SGA Bintan Project Smelter Grade Alumina Bintan Island, Riau Chinese Companies such 51%
as Xinfa, Chalco
SGA Mempawah Project Smelter Grade Alumina Mempawah, Hangzhou (China) 55%
West Kalimantan
SGA Munggu Pasir Project Smelter Grade Alumina Munggu Pasir, UC Rusal (Russia) 49%
West Kalimantan
Mandiodo NCPI Project Phase 1: NCPI Mandiodo Jindal (India) 70%

Phase 2: Stainless
86 Steel
Obi NCPI Project Phase 1: NCPI Obi Island, North Maluku Tsingshan (China) 60%
Phase 2: Stainless
Steel
Krakatau Iron Project Sponge Iron South Kalimantan Krakatau Steel 34%
Pearl Nickel Project 1) Ferronickel Halmahera Island, North BHP Billiton 50%
2) Nickel Cobalt Maluku
• Note: this table is for illustrative purposes only as the feasibility studies are still being conducted for many of these projects and as such many aspects were not final
• NCPI = Nickel Contained in Pig Iron
• EPC = Engineering Procurement and Construction
• BFS = Bankable Feasibility Study
• JVA = Joint Venture Agreement
• TPA = Tons per annum
Despite our strong performance in 2007, we realise we cannot get complacent and that building Acquisitive Growth Projects
reliable expansion projects to sustain growth remains absolutely critical. We must ensure
Company
sustainable profits so when commodity prices decline we can continue generating the cash
needed to repay our debts, finance our growth and pay dividends. Herald Resources Ltd
In 2007, some analysts complained there was no significant progress being made as regards our
growth projects, and only the signing of non-binding Memorandums of Understanding (MOUs) that
Various Targets
would expire after one year, as some already had. This view was somewhat true, in that no ground
breaking activities were conducted in 2007. However, we view signing these preliminary agreements PT Borneo Edo International
as a vital first step and feel there was indeed significant progress made in relation to our projects.
PT Mega Citra Utama

Given the long term, capital intensive, slow yielding nature of mining and metals processing, we
must be prudent in choosing our partners, technology, locations, offtakers, suppliers, advisors

Volume Project Cost Other Status
300,000 tpa Up to US$350 million - While project costs have soared - ICA formed in March 2007
over initial estimates, so to have - Updating BFS, EPC selection and
alumina prices financing
400,000 – 600,000 tpa US$250 million - - Unable to come to agreement on Not Feasible
US$400 million bauxite exports
- Ore deemed not feasible at Bintan
1.0 million tpa US$ 800 million - – - JVA negotiations, Feasibility studies
1 billion
1.2 million tpa US$1.2- – - Agreement signed in September 2007

US$1.5 billion - JVA negotiations, Feasibility studies
US$600 million - JVA negotiations, Feasibility studies

–
87
7,500 tpa of Nickel Contained $150 million to - While building at mine mouth - Agreement signed in October 2007
in Pig Iron $230 million reduces transportation costs, - JVA negotiations, Feasibility studies
coking coal is a challenge
- Prior plans for the Obi Iron Cap
project were cancelled
300,000 tpa US$65 million – - JVA negotiations, Feasibility studies
1) 30,000 tpa – 50,000 tpa of 1) US$1 billion - Part 1 will likely process FeNi - Agreement signed in February 2007
FeNi 2) US$3 billion using pyrometallurgy - JVA negotiations, Feasibility studies
2) 60,000 tpa of nickel cobalt - Part 2 will likely process nickel
cobalt using hydrometallurgy
Product Project Name/Location Partner(s) Antam % Volume Other Status
Lead/Zinc PT Dairi Prima Mineral, Zhongjin (China) 40% in Herald At full rate: 1m tonnes Reserves and As of April 2008,
North Sumatra (20% in Dairi) of throughput for 7 Resources of 15.3 takeover bid was
years (320,000 tonnes million tonnes in process
of concentrate, 175,000 (grading 13.4% Zn
tonnes of metal) and 7.8% Pb)
Gold Various, Indonesia – – – Macquarie acting as Identify target in
advisor 2008
Bauxite West Kalimantan 60% Acquired for the
– – bauxite resource _
potential
Bauxite West Kalimantan 80% Acquired for the
– – bauxite resource –
potential

and financiers. We form partnerships with many groups as part of the process of finding the best
way to create value by developing our reserves. We have the reserves, we have the capital, but
we must not make hasty decisions. Jointly conducting the pre-feasiblity work as called for by the If you could tell Antam’s
various MOUs that we sign is the best way to start the development of mineral our properties.
what would that be?
Over the past couple of years we have been discovering the best way to form benefical alliances
with China. Signing MOUs allows us to begin working together with the Chinese counterparty,
which in some cases has never ventured outside of China, to ensure we match. As was the case
with two MOUs related to the joint development of some of our bauxite reserves, sometimes we
find each party has different ideas about the partnership. Do not feel
satisfied with what
In February 2007, we signed a Heads of Agreement to establish an alliance with BHP Billiton to you have achieved.
investigate the joint development of an extensive nickel laterite resource on Halmahera Island. Benchmarking
Following the signing of the joint venture agreement of the Tayan project in March 2006, on April with other mining
26, 2007 we established a joint venture company, called PT Indonesia Chemical Alumina. Toward companies in
88 the end of the year we signed a Heads of Agreement with UC RUSAL of Russia to jointly develop order to measure
bauxite deposits in Indonesia. As well, we also signed an agreement with Tsingshan Holding Group competitiveness
Co. Ltd of China to conduct a feasibility study of jointly developing an integrated stainless steel will take you to a
facility at Antam’s laterite ore concession at Obi Island, North Maluku. All of these are part of our
higher level.
strategy of building and adding value to our reserves to sustain profitable growth.
However, we are the first to admit that an MOU is only a small step in project development, and
there is still much to do to get our projects realized and create the future value we are encouraging
our shareholders to focus on. Constant challenges we must deal with for all of our projects include
remote locations, poor infrastructure, higher costs, lack of, or too expensive contractors and
service providers, and regulatory uncertainty in the form of licensing issues.
Minerals are often in areas that are very difficult to gain access to, which can cause problems. Limited
infrastructure means escalation of project costs as well as difficulty in logistics distribution.
Escalation of material prices have pushed project costs to soar beyond initial expectations. For
example, in 2003, a bankable feasibility study for the Tayan project had the project cost at US$220
million. Following hikes in material prices inline with increased commodity and oil prices, the project
cost has increased by around 100%. However, we expect that higher alumina prices will maintain a
healthy return on investment.
As well, significant industrial growth in the Middle East, China and India has pushed demand for
contractors to spike and many are short of resources. Hence, there is difficulty in finding credible
and experienced contractors.
In Indonesia, project delays are sometimes attributable to the issue of regulatory uncertainty and
specifically getting the necessary licenses. Although all of our projects do not have any issues
with current required licenses, some of them might be affected by the bureaucracy and politics of
gaining other licenses or license renewal. This could mean expensive delays to projects.
Despite all of these challenges we remain confident about our future. We are committed in
expediting the pace of work on various projects, as well as addressing the outstanding issues and
ensure on time completion of the projects.

Comments from Heads of

Our Development Projects
With this section we hope to introduce and allow you to hear from some of the
people responsible for our development projects.
Dolok Silaban
President Director, PT Indonesia Chemical Alumina, Antam’s joint venture in the
Tayan project
“Difficulty in securing contractors. This is a major cause for the delay. The spike in energy prices
made the oil and gas industry very attractive and lured many investors to the industry. Contractors
were stretched and other industries became somewhat of a second priority for them.”
89
Arifianto Sobana Tiammar

Chief of Project Manager - Smelter Grade Alumina and Iron
“The lack of infrastructure and difficulty in logistics put upward pressure on the projects cost.
In addition, production and marketing these new products for us also pose challenges. Project
delay is also caused by the uncertainties on issues related to mining licenses.”
Tato Miraza
Project Group Leader - Nickel and Energy Development Project
“The increase of energy costs impacts largely on the capital expenditures. The requirement of
using high technology in nickel processing also adds some time in selecting the right partner.
The larger size of the production capacity will deliver economies of scale. However, we need
more energy, time and the appropriate partner to realize the plans. Remote location also creates
difficulties in bringing in facilities and human resources.”

90

91
Blue Sky:
Existing Minority-Stake
Joint Ventures
PT Nusa Halmahera Minerals
92
PT Galuh Cempaka
93
PT Cibaliung Sumberdaya
93
PT Dairi Prima Mineral

94
PT Weda Bay Nickel

94

This chapter discusses only those joint ventures with which we have a minority stake. Generally speaking
these joint ventures were formed prior to the economic crisis, downfall of Suharto and subsequent
boom in emerging and commodity markets. Antam was a very different company 10-15 years ago. At If you could tell Antam’s
that time we had limited access to capital and had yet to list our shares on a stock exchange, a much management one thing,
smaller balance sheet with little cash and, like today, a large number of exploration licenses all across what would that be?
the Indonesian archipelago. In order to minimize the “risk capital” of exploring these properties and to Investor Perception Survey
maximize the likelihood of developing a mine, we formed several partnerships with international mining
companies. In most cases, in return for prior exploration work, our local experience and knowledge
and the mining license, we would acquire a non-controlling free carried interest in the joint venture,
with an option to acquire more at some later stage. As Indonesia has been going through tremendous Good disclosure
economic and political changes, it is only recently that these projects are making significant advances,
and prudent capital
with most still at the exploration and development phase. However, one of the projects, PT Nusa
Halmahera (gold), has been operational since 1999 and another, PT Galuh Cempaka (diamonds) began
management are key
exporting in 2006. We view some of these joint ventures as having significant upside, both in terms of drivers of a lower
the upcoming likely commencement of operations and/or as an investment. cost of capital.
Minority Stake Joint Ventures
No. Company Product/ Contract of Work Antam Shares Location Partner Status
Commodity (CoW) Free Carried Investments Option
(including Loan in shares
Carried, if any)
1. PT Nusa Halmahera Gold 6th Generation - 17.50% - Halmahera, North Newcrest Singapore Production
Minerals Maluku Holding Pte Ltd,
92 subsidiary of
Newcrest (ASX Listed)
2. PT Galuh Cempaka Alluvial Diamonds 7th Generation 20% 10% Banjarbaru & Tanah Gems Diamond Ltd Production
Laut, South Kalimantan (LSE Listed)
3. PT Cibaliung Sumber Gold Mining License - 10.25% - Cibaliung, Banten Austindo Resources Development
Daya Corporation NL,
Australia (ASX Listed)
4. PT Dairi Prima Mineral Lead/ Zinc 7th Generation 20% - - Dairi & Pakpak Bharat, Herald Resources Construction
North Sumatera (ASX Listed)
5. PT Weda Bay Nickel Nickel 7th Generation 10% - 15% (after BFS Halmahera, North Weda Bay Minerals Pre-feasibility
completion) Maluku (TSE Listed), study
15% (after 14 a subsidiary of Eramet
years operation)
6. PT Gag Nikel Nickel 7th Generation 25% - 7% Sorong, Papua BHP Asia Pacific Pre-feasibility
Nickel Pty Ltd, a study
subsidiary of BHP
Billiton
7. PT Sorikmas Mining Gold & Base 7th Generation 25% - 15% Mandailing - Natal, Aberfoyle Pungkut Exploration
Metal North Sumatra Investment Pte Ltd
8. PT Gorontalo Minerals Gold & Base 7th Generation 20% - - Bolaang Mongondow, PT Bumi Resources No Activities
Metal South Sulawesi
9. PT Sumbawa Timur Gold & Base 7th Generation 20% - - Sumbawa Aberfoyle Pungkut No Activities
Mining Metal Investment Pte Ltd
10. PT Pelsart Tambang Gold 7th Generation 15% - - Kota Baru, Tanah Pelsart International No Activities
Kencana Bumbu, Banjar, Tanah NL, Australia
Laut, South Kalimantan
11. PT Bima Wildcat Gold & Base 7th Generation 15% - 10% Minahasa. North Bornite Pte Ltd CoW
Minahasa Metal Sulawesi terminated
PT Nusa Halmahera Minerals (Antam: 17.5%)

PT Nusa Halmahera Minerals (“NHM”) is a joint venture company owned 82.5% by ASX-listed
Newcrest Mining Limited and 17.5% by Antam located in the Gosowong area of Halmahera, North
Maluku. We do not have an option to increase our share ownership at NHM. NHM commenced
production at Kencana underground mine, located 1 km south from the Gosowong open pit mine,
in March 2006. In 2007, NHM produced 373,673 ounces of gold as a result of increased production
at Kencana although in the fourth quarter, a reduction in processed ore resulted in lower gold
production. Cash costs for the six months to 31 December 2007 reached US$220 per ounce with a
total production cost of US$320 per ounce.
For development and exploration activities, NHM conducted the Gosowong Extension Project,
including underground access, plant modifications and construction of additional site infrastructure,
which potentially will add significant value and increase its production life by around five years.
Feasibility work will be conducted on the US$80 million project during 2008 with implementation

scheduled for 2009. During 2007, NHM paid total dividends to Antam of US$15,168,812.34. On 16
April 2007, NHM shareholders approved to increase issued and paid up capital to 2,976,562 shares
(US$25,000,000.00). The increase was funded from a special dividend payment. Antam’s portion in
the increase was US$520,898.00 and deducted from total dividends paid to Antam. We value NHM
as a successful joint venture project and closely monitor NHM exploration and development activities
to improve reserves and resources and prolong the mine life. NHM has produces tremendous
investment returns for us, and is an example of what Antam’s other minority-stake joint venture
projects can become.
93
PT Galuh Cempaka (Antam: 20%)
PT Galuh Cempaka (“Galuh Cempaka”) operates the Cempaka alluvial diamond mine located in
South Kalimantan. Our ownership of 20% free carried shares includes an option to increase by 10%.
On June 2007, BDI Mining Corp, the former majority shareholder, with 80% interest, was acquired at
a net cost of US$80 million by Gem Diamonds Limited, a diamond producer listed on the main board
of the London Stock Exchange.
The alluvial deposits at the Cempaka Mine consist of the Danau Seran and Cempaka paleochannels.
The former has been mined since the commencement of operations in 2004 and is almost depleted.
It is significantly smaller but of a higher grade than the Cempaka channel. Minor gold and platinum
is present in the diamondiferous gravels in both channels.
During the year of 2007, Galuh Cempaka produced approximately 23,034 carats of diamonds and
16.8 kg of gold and platinum concentrates. Galuh Cempaka sold approximately 10,410 carats of
diamonds valued at US$2.27 million or US$218 per carat in the first half 2007, prior to the BDI
Mining acquisition by Gem Diamonds. In January 2008, 15,000 carats were sold through a tender
with an average price of US$331.00 per carat. We did not plan to exercise the option and continue
to observe PT Galuh Cempaka’s production and development.
PT Cibaliung Sumberdaya (Antam: 10.25%)

The Cibaliung project located at Banten is operated by PT Cibaliung Sumberdaya (“CSD”), a joint
venture company between Antam (10.25% interest with no option to increase) and Austindo Resources
Corporation NL, a public company listed on the ASX (89.75% interest). In 2007, CSD resumed decline
development with total development now in excess of 550 meters. CSD also conducted full mobilization
of the refurbishment work and moving the gold processing plant to the site. The first gold pour is now
expected within the second quarter of 2008. CSD indicated costs may increase up to US$21.6 million
excluding the impact of higher fuel prices. CSD now is reviewing funding alternatives to complete the
development of the Cibaliung Gold Project. CSD also conducted limited exploration activities.
Currently we are evaluating ownership at CSD and are studying the best alternatives on the additional
funding needs required by CSD during 2006-2008.

PT Dairi Prima Mineral (Antam: 20%)

The Dairi Project is held by PT Dairi Prima Mineral (“DPM”) under a 7th generation Contract of Work
between DPM and the Government of Indonesia. DPM is a joint venture operating company owned
80% by Herald (through Gain & Win Pte. Ltd.) and 20% by Antam.
In developing the Dairi Project, Herald has, in conjunction with Antam, made significant progress by
completing a positive definitive feasibility study, securing social and environmental and construction
approvals and was at the end of 2007 awaiting a forestry use permit before proceeding with the full
development of the Anjing Hitam deposit.
Herald has stated it has secured the major approvals required to develop and exploit the Anjing Hitam
deposit apart from the forestry use permit. DPM is currently awaiting approval from the Ministry of
Forestry regarding this permit. Herald has stated the Minister of Forestry already has the authority
to grant the permit, but notwithstanding this, has been instructed that a Presidential Regulation is
required to be obtained before the approval will be granted.
Herald has indicated that upon receipt of the forestry permit, should it be granted and subject to
any further conditions that may be required to be met, it will complete final land acquisitions and
progress the construction of mining and other facilities. This is expected to take approximately 18 to
21 months from receipt of the permit.
As a partner in DPM since its inception, we identified a compelling opportunity to take a majority
ALERT! o f
94 stake in the Dairi Project. This opportunity is inline with our strategy to grow in a considered way and INVESTOR h offer
e int cas
a jo r h o u
d it
to diversify away from nickel. We ma hare, w uire
0 per s cq
AUD2.5 hongjin, to a
a rt n e rZ s L td which
On 29 January 2008, we made a joint cash offer with Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd p source c
Hera ld R e le zin
a d
(“Zhongjin”), to acquire Herald Resources Ltd for A$2.50 per share, or A$505 million (US$448 million). 8 0 % of the
owns roject
Zhongjin is a Chinese metals and mining company, which is principally engaged in the mining and Dairi P
processing of lead, zinc and other non-ferrous metals and owned 38% by Guangdong Rising Assets
Management Co. Ltd., a state-owned enterprise under the Guangdong Provincial Government.
Due primarily to Zhongjin’s considerable operational expertise in lead/zinc mining and our
considerable experience operating in Indonesia as a major mining company, Antam is well placed
to draw on significant synergies with Zhongjin by jointly developing the Dairi Project. Antam and
Zhongjin established a joint venture called Tango Mining Pte Ltd for the specific purpose of carrying
out the cash offer transaction. This transaction will give Antam a combined majority stake in the Dairi
Project (through our investment in Tango combined with our current 20% direct interest).
PT Weda Bay Nickel (Antam: 10%)

PT Weda Bay Nickel is a nickel joint venture company between Antam (10% free carried interest) and
Weda Bay Minerals Inc. (90% interest), a onetime Toronto Stock Exchange listed company and since
2006, a subsidiary of Eramet S.A. The project is located in Central Halmahera of North Maluku. We
have a right to increase our interest up to 15% from additional stocks issued by PT Weda Bay Nickel
after completion of a bankable feasibility study at a price of development costs incurred with respect
to the operations up to date on which the production decision is made. Antam also has an option to
increase ownership between 5-15% after the 14th year of production.
In 2007, the joint venture completed several important development stages. The technical parameters
were validated by pilot tests carried out on the hydrometallurgical process developed by Eramet at
its research centre in Trappes on ore from Weda Bay. The resource level was confirmed through
exploration at more than 4 million tonnes with a higher degree of knowledge. A real-scale mining test
was carried out.The final decision to proceed with the project for 60,000 tones of nickel capacity will
be made in 2009. We had not yet considered exercising our option as feasibility studies still continue,
although we were encouraged and we expect positive results in 2008.

Exploration Detailed Corporate Financial Statements
and Reserves Description of Antam Risk Management Governance of Antam Sustainability Report and Notes Contact Us
Exploration and Reserves 95
Summary Tables of Reserves and Resources

96
Nickel
97
Detailed Nickel Reserves and Resources Table

98
Gold
Detailed Gold Reserves Table
100
Bauxite
Detailed Bauxite Reserves and Resources Table
101
Notes to Reserves and Resources Estimations

102

One of our competitive advantages as a mining and metals processing company is our high
quality reserves and resources all across Indonesia (please see “Notes to Reserves and Resources “We own high
Estimations” on page 102 for more details of how mineral reserves and ore resources are defined).
Antam views exploration activities a fundamental basis to support our corporate growth strategy. quality mineral
Planning is so much more effective when it is based upon solid and reliable data. For almost
a decade, we have followed the JORC Code issued by The Australasian Institute of Mining resources and ore
and Metallurgy for the estimation of our reserves and resources, as submitted in the form of a
Competent Person’s report in compliance with the requirements of our listing on the Australian reserves of nickel,
Securities Exchange. We understand that the highest standard of reserves and resources
estimations reporting, especially in this current commodity boom, is an absolute necessity. The gold and bauxite
JORC Code along with other standards such as the SAMREC Code (South Africa), Reporting Code
(UK / Ireland / Western Europe), CIM Definition Standards and Guidelines (Canada), SME Guide in Indonesia and
(USA) and Certification Code (Chile) are well-known standards and accepted globally. We believe
our report is fully comparable to other mining companies which adopt such standards.
constantly continue
to accelerate
Mineral Resources and Ore Reserves (‘000 wmt)*
Commodity Quantity Change (%) discovery of new
2006 2007
Saprolite Nickel 179,850 180,900 1
prospects in
Limonite Nickel 185,150 214,200 16
Gold 3,863 3,973 3
order to support
Bauxite 84,400 81,600 (3)
current operations
96
Proved and Probable Reserves (‘000 wmt)* and upcoming
2006 2007 projects.”

Saprolite Nickel 63,900 55,100 (14)
Limonite Nickel 51,450 50,150 (3)
Gold 2,882 3,026 5
Bauxite 84,400 73,100 (13)

*Based on the Competent Person’s report. Figures as per December 31, 2007 (Inferred resources were included in gold estimation).
Please see detailed tables in this section.
The Geomin Unit is Antam’s exploration division and conducts all of Antam’s exploration activities
including geological exploration, geophysical investigation, surveying, drilling, lab analysis, data
processing and arranges required licenses from general investigation to the exploitation phase. The
current challenges for Geomin are accelerating the discovery of new prospects and the extension
and/or expansion of mining licenses.

what would that be? Establish good corporate governance
and Antam shall be one of the biggest
mining companies in Asia.

Antam continued to focus on nickel, gold and bauxite exploration in 2007. Exploration expenditure
reported by Geomin, excluding joint ventures increased 32% to Rp125 billion. Antam spent
Rp91 billion on nickel exploration, Rp26 billion on gold and Rp8 billion on bauxite. Geological
and drilling activities significantly contributed to the expenditure. Antam has increased the 2008
exploration budget 7% to Rp134 billion, inline with higher revenues in 2007 and attempts to
acquire new prospect areas permits and licenses. Antam also considered other interesting
mineral prospects to support current operations and projects.
The estimations shown in the tables on page 96 describe the amount of resources and reserves
fully owned by Antam. The tables do not include mineral resources and reserves jointly held
with partners.
Nickel
Generally, all of Antam’s lateritic nickel resource estimates, both saprolite nickel (Ni ≥ 1.8% and Fe
< 25%) and limonite nickel (Ni ≥ 1.2% and Fe ≥ 25%) increased in 2007, mostly due to accelerated
and detailed exploration activities at several prospects, particularly at Buli and Obi, to support
nickel development projects. However, our nickel reserves estimates decreased mostly due to
strong production in 2007. Antam maintained the same cut off grade as used in 2006 to estimate
the ore reserves and mineral resources.
Nickel exploration activities were focused in Southeast Sulawesi and Halmahera, including Buli
(and surrounding areas) and Obi island which focused on supporting current nickel operations and
for nickel development projects.
97
Antam also continued to conduct nickel exploration at Morowali Regency of Central Sulawesi,
particularly at Tangofa, Buleleng, Witaponda I, Witaponda II, Witaponda III, Bungku Tengah and
Bungku Barat. In 2007, Antam did not upgrade nor estimate mineral prospects in these areas as
more detailed exploration activities were required.
As at December 31, 2007, Antam’s total proved and probable reserves estimation for saprolite
ore decreased 14% to 55.10 million wmt. For limonite reserves, the estimation slightly decreased
3% to 50.15 million wmt. Antam’s total measured and indicated resources for nickel saprolite ore
increased 8% to 125.80 million wmt while limonite nickel resources increased 23% to 164.05
million wmt.
Details of some of the changes to Antam’s nickel reserves and resources estimations based on
location are at page 98.
Southeast Sulawesi
In 2007, Antam conducted exploration activities at Southeast Sulawesi, particularly at the Pomalaa
nickel mine, Bahubulu Islands, Tapunopaka and Mandiodo. Antam also focused on exploration of
new discoveries in several prospects such as Pandua, Baunaga and Lalindu.
We continued to work on mine design at Tapunopaka as mining activities will be carried out soon.
We mobilized heavy equipment and infrastructure preparation including road and stockyard. As
well, Antam was in the process of obtaining subsequent permits and making other arrangements
following the approval of the exploitation license.

Nickel
Location Reserves Resources
Classification Saprolite Limonite Classification Saprolite Limonite
wmt Ni wmt Ni wmt Ni wmt Ni

Cut Off Grade Cut Off Grade Cut Off Grade Cut Off Grade
(‘000) (%) (‘000) (%) (‘000) (%) (‘000) (%)
Pomalaa Proved Ni ≥ 1.8% 2,000 1.9 - - - Measured - - - - - -
Probable - - - - - - Indicated - - - - - -
TOTAL - 2,000 1.9 - - - TOTAL - - - - - -
Bahubulu Proved - - - - - - Measured Ni ≥1.8% & Fe <25% 8,400 2.3 Ni ≥ 1.2% & Fe ≥ 25% 5,250 1.5
Probable - - - - - - Indicated Ni ≥1.8% & Fe <25% 10,000 2.3 NI ≥ 1.2% & Fe ≥ 25% 20,600 1.5
TOTAL - - - - - - TOTAL - 18,400 2.3 - 25,850 1.5
Tapunopaka Proved - - - - - - Measured - - - - - -
Probable Ni ≥ 1.6% & Fe <25% 3,800 2.0 Ni ≥1.2% & Fe ≥ 25% 9,950 1.6 Indicated - - - - - -
TOTAL - 3,800 2.0 - 9,950 1.6 TOTAL - - - - - -
Mandiodo Proved - - - - - - Measured - - - Ni ≥ 1.2% & Fe ≥ 25% 5,450 1.5
Probable - - - - - - Indicated Ni ≥ 1.8% & Fe <25% 5,700 2.2 Ni ≥ 1.2% & Fe ≥25% 21,600 1.5
TOTAL - - - - - - TOTAL - 5,700 2.2 - 27,050 1.5
TOTAL - 3,800 2.0 - 9,950 1.6 - 24,100 2.2 - 52,900 1.5
Tanjung Buli Proved Ni ≥ 1.8% & Fe< 25% 10,600 2.2 - - - Measured - - - - - -
Probable Ni ≥ 1.8% & Fe< 25% 6,500 2.2 Ni ≥ 1.2% & Fe ≥ 25% 12,100 1.5 Indicated - - - - - -
TOTAL - 17,100 2.2 - 12,100 1.5 TOTAL - - - - - -
Gee Proved Ni ≥ 1.8% & Fe< 25% 1,000 2.1 - - - Measured - - - - - -
Probable - - - - - - Indicated - - - - - -
TOTAL - 1,000 2.1 - - - TOTAL - - - - - -
Pakal Proved - - - - - - Measured - - - - - -
Probable Ni ≥ 1.8% & Fe< 25% 13,500 2.4 Ni ≥ 1.2% & Fe ≥ 25% 17,800 1.5 Indicated - - - - - -
98 TOTAL - 13,500 2.4 - 17,800 1.5 TOTAL - - - - - -
Sangaji Proved - - - - - - Measured Ni ≥ 1.8% & Fe < 25% 12,500 2.2 Ni ≥ 1.2% & Fe > 25% 13,200 1.4
Probable - - - - - - Indicated Ni ≥ 1.8% & Fe < 25% 56,800 2.2 Ni ≥ 1.2% & Fe > 25% 46,900 1.4
TOTAL - - - - - - TOTAL - 69,300 2.2 - 60,100 1.4
Mornopo Proved Ni ≥ 1.8% & Fe <25% 14,200 2.1 - - - Measured - - - - - -
Probable Ni ≥ 1.8% & Fe <25% 3,500 2.2 Ni ≥ 1.2% & Fe ≥ 25% 10,300 1.4 Indicated - - - - - -
TOTAL - 17,700 2.2 - 10,300 1.4 TOTAL - - - - - -
P1 Proved - - - - - - Measured - - - - - -
TOTAL - - - - - - TOTAL - 3,800 2.4 - 1,650 1.4
P8 Proved - - - - - - Measured - - - - - -
TOTAL - - - - - - TOTAL - 1,650 2.2 - 1,050 1.3
Buli Area TOTAL - 49,300 2.2 - 40,200 1.5 - 74,750 2.2 - 62,800 1.4
Kawasi Proved - - - - - - Measured Ni ≥ 1.8% & Fe < 25% 2,400 2.2 Ni ≥ 1.2% & Fe ≥ 25% 1,250 1.5
Probable - - - - - - Indicated Ni ≥ 1.8% & Fe < 25% 18,400 2.2 Ni ≥ 1.2% & Fe ≥ 25% 27,550 1.5
TOTAL - - - - - - TOTAL - 20,800 2.2 - 28,800 1.5
Mala-Mala Proved - - - - - - Measured - - - - - -
TOTAL - - - - - - TOTAL - 5,050 2.1 - 12,650 1.5
Haul Sagu Proved - - - - - - Measured - - - - - -
TOTAL - - - - - - TOTAL - 1,100 2.1 - 6,900 1.5
Obi Area TOTAL - - - - - - - 26,950 2.2 - 48,350 1.5
GRAND TOTAL - 55,100 2.2 - 50,150 1.5 - 125,800 2.2 - 164,050 1.5

99
Geologists prepare to conduct As at December 31, 2007 total reserves and mineral resources of saprolite nickel ore in Southeast
exploration drilling.
Sulawesi decreased 5% to 29.9 million wmt while limonite did not change from 62.85 million wmt.
Buli (and surrounding areas), Halmahera, North Maluku

In the Buli area, Antam has three nickel mines, Gee Island, Mornopo and Tanjung Buli and
the prospects areas of, Pakal and Sangaji. The reserves and resources in this area contribute
significantly to Antam’s total nickel reserves and resources. Antam continued to do extensive
exploration to support upcoming projects and also current mining operations.
In 2007, Antam conducted drilling using spacing of 25 meters, 50m and 100m at Sangaji and
drilling spaced at 50m at Mornopo. As a result of detailed exploration activities, Antam was able
to increased limonite resources at the Buli area. As at December 31, 2007 the total reserves and
mineral resources of saprolite nickel ore at Buli decreased 9% to 124.05 million wmt while limonite
nickel ore reserves and resources increased 6% to 103 million wmt.
Obi Island, Halmahera, North Maluku

In 2007, Antam focused on exploration activities at Obi Island mainly to increase indicated resources
at several prospect areas such as Kawasi, Mala-Mala and Haul Sagu. As a result of detailed
exploration activities, estimations of both saprolite and limonite at Obi Island increased. As Antam
plans to conduct mining activities in the area soon, Antam began to mobilize heavy equipment and
develop infrastructure and also processed required authorizations. As at December 31, 2007 total
resources of saprolite nickel ore at Obi Island increased 117% to 26.95 million wmt while limonite
nickel resources increased 91% to 48.35 million wmt.

Gold
Gold exploration in 2007 continued to focus on new discoveries and more detailed reserve
estimations. Mining activities continued at Pongkor underground gold mine located at West Java. If you could tell Antam’s
Given the strategic importance of gold to act as a natural hedge to Antam’s heavy exposure
what would that be?
to nickel, Antam increased gold exploration activities at Pongkor and other prospects within As collected from Antam’s 2008
Indonesia. It is estimated the mine life of Pongkor will last six to seven years.
Exploration activities at Pongkor continued particularly at Kubang Cicau, Ciurug, Ciguha Timur,
Nirmala and Malasari. Antam discovered various mineralizations and as result of detailed
I strongly
exploration activities could slightly increase gold reserves.
recommend you
keep fighting to
We focused on prospect areas within Indonesia, such as Muaramanderas of Jambi, Papandayan of
West Java, Gembes of East Java, West Sulawesi and Southeast Sulawesi. Antam also conducted
acquire Herald
initial exploration activities in Aceh, North Sumatra and Central Java. Resources and
Newmont due to
Antam hopes for some encouraging mineralizations to be revealed at those areas. As at positive signals
December 31, 2007, total reserves and resources at Pongkor excluding inferred resources from the market.
increased 5% to 3.026 million wmt with an estimated 743,000 contained ounces of gold and
8.2 million contained ounces of silver.
GOLD
Location Reserves Resources
Classification Gold Ore Classification Gold Ore
wmt Mean Grade Metal (oz) wmt Mean Grade Metal (oz)
100 (‘000) (g/t) (‘000) (‘000) (g/t) (‘000)
Au Ag Au Ag Au Ag Au Ag
Pongkor Proved 405 11 107 130 1,263 Measured+Indicated – – – – –
Probable 2,621 7.8 89 613 6,938 Inferred 947 5.9 78.4 163 2,148
GRAND 3,026 8.22 92 743 8,201 TOTAL 947 5.9 78.4 163 2,148
TOTAL

Bauxite
Antam conducted bauxite exploration activities at existing prospects of the Kijang mine (and
surrounding areas) of Bintan Islands, Tayan and Munggu Pasir of West Kalimantan. Over 90% of
our total bauxite reserves and resources estimations were from West Kalimantan.
BAUXITE
Location Washed Bauxite
Classification Reserves Classification Resources
wmt T-SiO2 R-SiO2 Al203 wmt T-SiO2 R-SiO2 Al203
(‘000) % % % (‘000) % % %
Wacopek Proved 2,200 14 7.4 51.5 Measured - - - -
Probable - - - - Indicated 8,500 16.9 8.7 51.9
TOTAL 2,200 14 7.4 51.5 TOTAL 8,500 16.9 8.7 51.9
Tayan Proved 9,300 20.1 4.1 47.3 Measured - - - -
Probable 21,600 12.0 3.7 47.5 Indicated - - - -
Munggu Pasir Proved - - - - Measured - - - -
Probable 40,000 10.3 3.2 46.6 Indicated - - - -
TOTAL Tayan and 70,900 12.1 3.5 47
- - - -
Munggu Pasir
GRAND TOTAL 73,100 12.2 3.6 45.6 8,500 16.9 8.7 51.9
Total washed bauxite reserves and resources estimations from Kijang, Tayan and Munggu
Pasir prospects decreased 3% to 81.6 million wmt inline with bauxite production in 2007. Due
to challenges affecting the area/location containing our bauxite reserves and resources, Antam
reclassified probable reserves at Kijang to indicated resources. Antam maintained reserves
estimations at West Kalimantan for both Tayan and Munggu Pasir in preparation for several alumina
projects in the vicinity. 101

what would that be?
Always remember the Triple Bottom Line (Profit, People,

and Planet) in running your daily business operation,
so that your business can be more balance and
sustainable.

Notes to Reserves and

Resources Estimations
Pursuant to the JORC Code, a ’mineral resource’ is a concentration or occurrence of material of intrinsic economic
interest in or on the earth’s crust in such form and quantity that there are reasonable prospects for eventual
economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource
are known, estimated or interpreted from specific geological evidence and knowledge. The term mineral resource
covers mineralization which has been identified and estimated through exploration and sampling and within which
ore reserves may be defined by the consideration and application of technical, economic, legal, environmental,
social and governmental favors.
An ’indicated mineral resource’ is that part of a mineral resource for which tonnages, densities, shape, physical
characteristics, grade and mineral content can be estimated with a reasonable level of confidence. The estimate
is based on exploration, sampling and testing information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological
and/or grade continuity but are spaced closely enough for continuity to be assumed. An indicated mineral resource indicates a lower level of
confidence than that applying to a measured mineral resource.
A ’measured mineral resource’ is that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a high level of confidence. The estimate is based on detailed and reliable exploration, sampling and
testing information gathered through appropriate techniques from locations such as outcrops, trenchers, pits, workings and drill holes. The
locations are spaced closely enough to confirm geological and/or grade continuity.
An ’ore reserve’ is the economically mineable part of measured or indicated mineral resource. Ore reserves are those portions of mineral
resources which, after the application of all mining factors, result in an estimated tonnage and grade which, in the opinion of the persons
making the estimates, can be the basis of a viable project after taking account of all relevant metallurgical, economic, marketing, legal,
environmental, social and governmental factors. The estimate includes diluting materials and allowances for losses which may occur when
the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, and include consideration of and
modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors.
102
These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore reserves are subdivided in order of
increasing confidence into probable ore reserves and proved ore reserves.
A ‘proved ore reserve’ is the economically mineable part of a measured mineral resource. The estimate includes diluting materials and
allowances for losses which may occur when the material is mined. Approximate assessment, which may include feasibility studies, have
been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing,
legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could
reasonably be justified.
A ’probable ore reserve’ is the economically mineable part of an indicated, and in some circumstances measured mineral resource. The estimate
includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments, which may include
feasibility studies, have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic,
marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could
reasonably be justified. A probable ore reserve indicates a lower level of confidence than a proved ore reserve.
The data on the reserves and resources included in this Annual Report is based on and accurately reflects information that has been compiled
by Mr. Trenggono Sutioso. Mr. Sutioso is a permanent employee of the Company a member of the Australasian Institute of Mining and
Metallurgy and has the appropriate experience to be considered a Competent Person as defined in the JORC Code. However, the reserves
and resources information contained in this Annual Report has not been independently verified and any independent verification may produce
variation, which may be material. Unless otherwise indicated, these reserves and resources data do not include that of the Company’s joint
venture. This information is a summary of the Company’s reserves and resources as at December 31, 2007, for simplification measured and
indicated resources have been combined.
31 December 2007
Trenggono Sutioso

ing
Everyth know
d to
you nee arted on
t
to get s ng and
analyzi nding
a
underst m
Anta
Detailed Description of Antam

How We Make Our Money
104
103
Our Strategy To Grow
104
Our Structure
105
Our Products and How We Make Them

105
Our Customers and Market Share

108
Our Competitors
109
Our Country and Government

110
Our Industry
110
SWOT Analysis
112

How We Make Our Money

We make our money by profitably exploring, discovering, excavating, processing and refining
mineral deposits and then selling them around the world and have been doing so for four decades
since our inception in 1968.
what would that be?
Our success could be attributed to our vast reserves and resources, our proven ability to locate
and develop those deposits, our ability to construct and operate sustainable processing facilities,
our ability to develop long-term relationships with world class customers, our commitment to
Good Corporate Governance (GCG) and our prudent financial management. Antam’s
management is
Our Strategy to Grow
quite cooperative
Our strategy to grow and meet our objective to enhance shareholder value is by focusing on what
with the public.
we do best, creating and maintaining sustainable growth and operations, and maintaining our
We expect the
financial strength.
management to
We have cultivated a significant expertise in the business of exploring, discovering, extracting,
keep disclosing
processing and marketing of nickel, bauxite and gold products. While we will continue to focus the information
on this core business, we may consider entering other mining businesses if we are presented with and all the revenue
very attractive opportunities in such segments. projections of
Antam.
We create and maintain sustainable growth and operations through various means. To safeguard
and replenish our reserves we invest risk capital annually of about 3-5% of our previous year
export revenues. As exploration is a risky undertaking, we also form strategic alliances with leading
global mining companies to mitigate this risk. By so doing we will also obtain new technology and
increase our sources of financing alternatives.
We continue to move further downstream into processing activities to add value. We will also
104 expand our processing capacity in order to maximize output, increase cash generation and lower
unit cost through economies of scale. In order to further control our cost, we will continue to find
new sources of energy that are cheaper than our current diesel-based energy. Meanwhile, we will
maintain a diversified customer base to avoid any dependence on a single market.
In view of our strong balance sheet and cash rich position we will undertake acquisitions to speed
up our growth. We appointed Macquarie in 2007 to help us conduct due diligence work on several
gold acquisition opportunities in Indonesia.
We are committed to conducting the above undertakings in environmentally and socially responsible
manners. By adhering to international standards of environmental management and by treating our
work force and the surrounding communities respectfully, we will minimize business interruptions
and ensure safe and sustainable operations.
Maintaining a robust financial foundation through a strong balance sheet and healthy liquidity has
always been a top priority. By generating as much cash as possible we ensure sufficient funds to
finance growth, pay dividends and repay debts. Strong cash, sound capital structure and easy
access to capital will maintain our financial flexibility and provide us with protection in the event of
falling commodities prices and other external pressures.

Engineers monitor
Power Plant No. 3.
Our Structure
Our group consists of PT Antam Tbk (Antam), three wholly-owned subsidiaries, one 80% owned
subsidiary and one 60% owned subsidiary.
PT ANTAM Tbk 105
Antam Finance Ltd. Antam Europe BV PT Antam PT Borneo Edo PT Mega Citra
(Mauritius) (100%) (Netherlands) (100%) Resourcindo (99.98%) International (60%) Utama (80%)
PT Antam Resourcindo operates our iron sands business in Kutoarjo, Central Java, and our near-
exhausted gold mine in Cikotok, West Java. Antam Finance Ltd (Mauritius) and Antam Europe
BV (Netherlands) are finance-related companies used for our corporate bonds issuance. With the
bond redemption in December 2006, these two subsidiaries are in the process of being liquidated.
We have conducted all the necessary administrative requirements for the liquidation. In September
2007 we acquired a 60% interest in PT Borneo Edo International (BEI), an exploration stage
company with a mining authorization for bauxite exploration in West Kalimantan. In January 2008,
we increased our 4% ownership in PT Mega Citra Utama (MCU), an exploration stage company
with a mining authorization for bauxite exploration in West Kalimantan, to 80%.
Our Products and How We Make Them

Our products are ferronickel, high grade nickel ore (saprolite), low grade nickel ore (limonite),
gold, silver, bauxite and iron sands. Our main services are precious metals refining and geological
services. These products are produced through our Strategic Business Units (SBUs) which function
as profit centers.

Exploitation Licenses*
Nickel
Location No. Exploitation Licences Area (Ha) Expiration Date Status
Pomalaa KW.98PPO213 1,584 15-07-2010 Production
(Southeast Sulawesi) KW.98PPO214 2,372 15-07-2010 Production
KW.98PPO215 599 15-03-2009 Production
KW.98PPO216 3,759 15-03-2009 Production
Maniang Decree of Kolaka 195 10-02-2008 Production
(Southeast Sulawesi) Regency
No. 27 Tahun 2003
Bahubulu and Decree of Kendari 6,213 06-05-2028 Development
Tapunopaka Regency
(Southeast Sulawesi) No. 161 Tahun 2005
Buli Area KW.97PPO443 39,040 08-01-2019 Production
(North Maluku)
Obi Island KW.97PPO464 9,528 10-03-2028 Development
(North Maluku)
TOTAL NICKEL 63,290
GOLD and SILVER
Location No. Exploitation Licenses Area (ha) Expiration Date Status
Pongkor (West Java) KW.98PPO138 6,047 20-04-22 Production
TOTAL GOLD 6,047
BauXITE
Location No. Exploitation Licenses Area (ha) Expiration Date Status
Kijang KW.96PPO346 2,988 13-12-09 Production
(Bintan Island) KW.96PPO359 1,098 13-12-09 Production
Tayan
KW.98PPO183 36,410 01-09-20 Development
(West Kalimantan)
TOTAL BAUXITE 40,496
*These tables show exploitation licenses only and do not include all mining licenses.
Nickel SBU
Our nickel SBU, which operates one nickel mine and three ferronickel smelters in Southeast
Sulawesi (Pomalaa) and three nickel mines in North Maluku (Gee, Tanjung Buli and Mornopo),
106
produces and exports high grade nickel ore with a minimum 1.8% nickel content (saprolite), low
grade nickel ore with a 1.2% minimum nickel content (limonite) and ferronickel, which is in the form
of either high-carbon or low-carbon and is generally 20% nickel and just under 80% iron. ALERT! rves
INVESTOR
nickel
rese
f
7, our sisted
o
The majority of our saprolites are exported, of which the higher grades are exported to Japan and In 200 rc es con on wmt
s o u li
and re 181 m
il
Eastern Europe and the lower grades to China. Some portion of our saprolites are used as feedstock imately d
approx saprolites an
for our ferronickel production. In 2007 the majority of limonites were exported to China while a of n w m t
illi o
214 m e s .
nit
small portion were exported to Macedonia . In 2007, our nickel reserves and resources consisted of of limo
approximately 181 million wmt of saprolites and 214 million wmt of limonites.
Ferronickel is produced using an energy intensive pyrometallurgical process where one tonne of
ferronickel is produced by smelting about 75-80 tonnes of saprolites. Ferronickel is sold to customers
in Europe, Japan, Korea, Taiwan, India and China in the form of ingot (bars) or shots (pellets).

Our ferronickel smelters, FeNi I and Feni II have a name plate capacity of 5,500 tons per annum
If you could tell Antam’s each and FeNi III has an optimal capacity of 14,000 tonnes per annum. We have decided operating
management one thing, FeNi III at its nameplate capacity of 15,000 tonnes per annum, if operated at a full power load of 42
what would that be? MW while using 2.38% nickel grade, is potentially unstable. The entire Pomalaa facility is powered
by our 102 MW dual-fired power plant, which is run using MFO oil. Currently, the power plant is
jointly maintained and operated with Wartsila of Finland.
Gold SBU and Precious Metals Refinery SBU

Go Go Go Win the
Our Gold SBU mines gold ore and smelts it into gold dore bullions. The bullions are then refined
Herald Resource Bid.
by our Precious Metals Refinery SBU to produce pure gold and silver bars and coins. Silver is
produced as a by product and as such, its production cost is included in the production cost of
gold. The gold and silver bars and coins are then sold to domestic and foreign buyers, mostly
jewelry makers. The purity of our gold and silver is internationally accredited by the London
Bullion Market Assocation (LBMA).
Gold ore is mined at Pongkor, West Java, an underground gold mine that was discovered by
Antam’s Geomin geology division and opened in 1993. Pongkor has a nameplate capacity of 5
tonnes, or 5,000 kg (161,000t.oz), of gold per year. In the last a couple of years, however, we have
targeted about 3,000 kg (96,600t.oz) of gold and 22,000kg of silver per year, from ore production
of about 400,000 wmt ore per year due to softer than expected mine tunnel walls and lower than
expected grades. Antam has about 6 - 7 years of gold and silver production left from Pongkor’s
estimated 3.03 million wmt of ore reserves with 743,000 contained ounces of gold and 8.2 million
contained ounces of silver.
Logam Mulia, Indonesia’s only precious metal refinery, has a capacity of 75 tons of gold per year
and 275 tons of silver per year. Only about 30% of the capacity is utilized due to the declining
supply from third party miners in view of dwindling gold investment in Indonesia. Historically more
than half of Logam Mulia’s income was derived from refining service for third parties. Our planned 107
gold mine acquisition, if realized, is expected to boost its capacity utilization.
SBU Other Minerals

Antam’s other minerals SBU produces bauxite and iron sands.
We are Indonesia’s longest running producer of bauxite, the raw material for production of alumina.
Our bauxite ore is mined from open pits at Kijang, Riau, and is exported to alumina producers in
Japan and China. We export about 1 - 1.5 million tonnes of bauxite per year.
Kijang mine had reached the end of its reserve life. However, exports continued from Kijang, as
Antam’s customers in China were willing to take delivery of the lower quality bauxite which was
previously considered not fit for sale.
Our largest bauxite reserves are located at Tayan, West Kalimantan. In line with our strategy to move
downstream, we will not export the ore but will develop CGA and SGA plants with international
partners. We have around 82 million tons of bauxite reserves and resources, (excluding reserves
and resources owned by PT Borneo Edo Indonesia and PT Mega Citra Utama). At current extraction
rate, these reserves and resources will last for several decades.
The iron sands business has not been an important money earner for us and in 2005 it was turned
over to our subsidiary, PT Antam Resourcindo.

SBU Exploration - Geomin

Our exploration business unit, Geomin, mainly focuses on finding new gold discoveries and
on estimating our reserves of nickel and bauxite more accurately. Unit Geomin is a cost center If you could tell Antam’s
although it may conduct services for third parties. Unit Geomin will work together with international
what would that be?
partners as required by head office to meet the terms of joint venture agreements. As collected from Antam’s 2008
Our Customers and Market Share

Our customer base is diversified and we are not dependent upon a single customer or country.
The majority of Antam’s products are exported to long term, loyal and blue chip international
Too much
companies in Western Europe and East Asia.
acquisition
news but limited
2007 CUSTOMER INFORMATION
funding thus
PRODUCT
Saprolite
CUSTOMER-LOCATION
Pacific Metals (PAMCO)-Japan
QUANTITY
977
we’re doubting
(‘000 wmt) Sumitomo Metal Mining (SUMICO)-Japan 686 management will
Nippon Yakin Kogyo-Japan 363 realize its plans.
Raznoimport Nickel-Europe - Ukraina 814
Via AVARUS-Europe - Macedonia 415
Various Spot Buyers such as: Zhejiang Yuan Tong; Premiere Asian Investment;
Ang Been Malacca; Kam Wah Company, etc-China 1,741
Minmax Resources Holding-China 686
China MCC Int’l Economic and Trade-China 413
Tsingshan Holding-China 370
TOTAL Saprolite 6,464
Limonite Zhejiang Grand Imp & Exp-China 300
(‘000 wmt) Pilar Banyu Mas Hongkong-China 75
Via AVARUS-Europe - Macedonia 68
TOTAL Limonite 443
FeNi Pohang Iron & Steel (POSCO)-Korea 5,061
(TNi) Via Avarus for Thyssen Krupp Nirosta, Avesta Polarit, Outokompu, Arcelor-Mittal,
ALZ BV-Europe - Germany, Belgium,UK, etc 9,142
Ni-Met Metals & Minerals Inc-India 300
108 Yieh United Steel Corporation (YUSCO)-Taiwan 2,503
Nisshin Steel; Nikkinko Trading, Mitsubishi Corp-Japan 717
TOTAL FeNi 17,723
Gold Standard Bank Plc-Singapore 3.75
(Tonnes) Various Jewellers - retail-Indonesia 1.25
Total Gold 5.00
Silver CYS Cheung Yong Sam Enterprise Pte; Ltd-Singapore 16.50
(Tonnes) Various Jewellers - retail-Indonesia 10.45
Total Silver 26.95
Gold Refining Avocet Bolaang Mongondow-Indonesia 2.21
(Tonnes) Nusa Halmahera Mineral-Indonesia 11.28
Indo Muro Kencana-Indonesia 1.41
Antam Recourcindo - Antam-Indonesia 0.19
Pongkor - Antam-Indonesia 2.79
Gold Scraps-Indonesia 9.06
Total Gold Refining 26.94
Silver Refining Avocet Bolaang Mongondow-Indonesia 0.18
(Tonnes) Nusa Halmahera Mineral-Indonesia 12.78
Indo Muro Kencana-Indonesia 11.47
Antam Recourcindo - Antam-Indonesia 0.68
Pongkor - Antam-Indonesia 24.13
Silver Scraps-Indonesia 4.82
Total Silver Refining 54.06
Bauxite Showa Denko KK, Japan 316
(‘000 wmt) Chiping Xinfa Huayu Alumina Co.,Ltd-China 288
Nippon Light Metal Company.,Ltd-Japan 206
Sumitomo Chemical Company (SCC)-Japan 127
Alasaka Company Limited-China 38
TOTAL Bauxite 975

Since 2004, we began to establish relationships with customers from Eastern Europe as many
nickel smelters in Eastern Europe that were previously shutdown were being revived due to the
high nickel prices. Antam further diversified its customer base by entering business relationships
with companies in India and China
Our new Chinese customers purchase our lower grade saprolites to produce nickel contained
in pig iron (NCPI) which is then sold to Chinese producers of low grade stainless steel. Although
China has been a major source of demand growth for nickel in the past a couple of years, we
will not over expose ourselves to China and will maintain our diversified customer base around
the world.
Most of our sales agreements are based on volumes for one to three years and prices are
determined by the international spot price. We also have two long term offtake agreements of
11 and 10 years from commercial operations of FeNi III, amounting to a combined annual total of
14,000 tonnes of nickel in ferronickel, with TKN of Germany and Posco of Korea.
Sacks of ferronickel shot ready for export.
Our Competitors
Our performance has been at par, and in some cases better, compared to other mining companies
– other beneficiaries of the high commodity prices - in Indonesia and world wide.
Compared to the average of Indonesia mining companies, which include ourselves, other domestic
companies and foreign companies operating in Indonesia, we have been utilizing less debt and
more conservative capital structure. Yet, our margins and return on equity are comparable or
higher than the average.
Compared to the top 40 global mining companies, our debt utilization has been a little bit more
aggressive. However, we have been able to post much better margins and financial returns.
109
Key Ratios Top 40 Global Indonesian Antam
Companies Mining
Companies
2005 2006 2005 2006 2005 2006 2007
Ebitda Margin 37% 44% 43% 41% 41% 49% 64%
Net Profit Margin 23% 27% 23% 23% 26% 28% 43%
Return on Equity* 26% 33% 37% 39% 31% 42% 79%
We surpassed our peers in terms of margins
Debt to Equity 32% 36% 49% 47% 40% 31% 10%
and returns.
Key Ratios Australian Miners Indonesian Antam

Miners
Average 10 years Average 10 years Average 10 years
(1997-2006) (1997-2006) (1997-2006)
Ebitda Margin NA 39% 35%
Net Profit Margin 12% 16% 20%
Our average 10 years debt to equity ratio is Return on Equity* 12% 19% 22%
significantly much lower than those of our Debt to Equity NA 115% 37%
Indonesian peers.

Our Country and Government

The regulatory environment for the mining business has becoming more complex as the country
is undergoing a decentralization drive that commenced in the post-Soeharto era. There has been
much confusion and excessive red tape due to overlapping authorities between the central and
regional governments.
The draft mining law, which is currently being debated in parliament, is expected to provide some
clarity on this issue once it is finally passed. Among the most salient features of this law would be
the likely ban of ore exports to be implemented in stages within a transition period following the
passing of the revised law. This will not impact us as we have been planning to stop exporting raw
materials and moving toward downstream processing activities even if there were no such bans.
We believe we will be the beneficiary of the law as the domestic companies who currently only sell
ores will cease to become competitors and would instead become our suppliers of ores. However,
it remains to be seen how effective the law enforcement will be.
Our Industry
The nickel price reached around US$24.00 per pound in mid-2007 in view of strong demand from
China, the stainless steel industry in general, production shortages and dwindling inventories.
Nickel prices then dropped sharply in the second half of 2007 as stainless steel producers
conducted de-stocking programs and stopped producing additional stainless steel partly to avoid
having to buy nickel at very high prices. This nickel price correction was beneficial to nickel’s long
term fundamentals as it prevented significant substitution from nickel, a shift that would be hard to
reverse. The average international spot nickel price settled at US$16.90 per pound in 2007, still a
historical high. As de-stocking programs were likely to begin coming to an end by the end of fourth
quarter 2007 or beginning of 2008, which would push down international inventories tracked by
the London Metals Exchange, while nickel supply shortages were expected to continue in the near
future, mining analysts expect the nickel price to slightly recover in the early to middle part of 2008
110
although the average nickel price in 2008 would be lower at around US$12.50 – 15.00 per pound.
Analysts expect long term nickel prices of around US$7.00 per pound, still much higher than the
US$3.00 per pound forecasted only a couple of years ago.
After hovering around US$650-US$700 per troy ounce for the first eight months of 2007, gold
prices began a sustained increase in September 2007. By the end of 2007, gold prices had reached
around US$840 per troy ounce. The average gold price for 2007 was US$697 per troy ounce. The
meteoric rise of gold prices could be attributed to among other things recessionary fears, inflation
concerns, US Federal Reserve rate easing, dollar weakness and geopolitical concerns. As these
factors are likely to remain in place in 2008, some mining analysts predict gold prices could break
US$1,000 per troy ounce in 2008.

Bauxite prices are determined over the counter and there are no benchmark prices of bauxite as
“The nickel price they are not listed in the LME. Our bauxite average selling price increased 7% to US$ 14.58 per
wet metric ton (wmt) in 2007 from US$13.60 per wmt. However, our prices were well below the
correction in the prevailing global prices of above US$20 per wmt as our bauxite ores are of lower grade quality,
coming as they are from the almost depleted Kijang mine.
second half of 2007
The average price of Smelter Grade Alumina, which consumes around 90% of global bauxite
was beneficial to production, decreased 12% to US$359 per tonne from US$407 per tonne in 2006 due to lower
demand from aluminium smelters, especially in China, due to de-stocking activities. Chinese
nickel’s long term alumina producers have cut production levels to reduce supply and stem the faltering prices and
in first quarter 2008 average SGA prices stood at US$394 per tonne.
fundamentals as it
In general the prices of Chemical Grade Alumina are 25-35% higher than the prices of SGA, as it is
prevented significant less of a commodity than SGA, is more of a speciality product and is a niche market.
substitution.” Despite a slight increase in stock level in 2007, aluminum prices increased 3% to US$2,639 per
tonne in 2007 from US$2,566 per tonne in 2006 partly due to inflow from hedge funds on the back
of turbulent equity market, high oil prices, and weak US dollar. Power disruptions in South Africa
and China caused aluminium prices to jump sharply to US$3,200 per tonne in early 2008. By the
end of first quarter 2008 the power disruptions issue has settled down and mounting surpluses
should keep prices under downward pressure. Aluminium prices however are still supported by
rising energy prices and inflow from financial investors. Mining analysts expect aluminium price to
hover around US$2,800 per tonne by mid 2008.
111

SWOT Analysis
STRENGTHS OPPORTUNITIES
• Our vast reserves and resources will generate cash and • High commodity price environment provides opportunities
create value. Our nickel reserves and resources probably to extract and market products that were recently not
stand among the top five largest in the world. Our proved economical to produce.
nickel reserves, which are JORC compliant, contain about
1.83 million tonnes of nickel metal. For illustrative purposes • More and more international parties seek to form
only, under current nickel prices, the value would be about partnerships with Antam. Future value will eventually be
US$51 billion. realized from our solid strategic alliances with international
partners.
• Being 65% state-owned mining company provides us with a
home field advantage in mineral-rich Indonesia. We are likely • Ample room to grow, internally and through acquisitions,
to benefit in the event that the Government gives priorities to given the strong balance sheet, cash rich position and
national mining companies. untapped mineral reserves and resources.
• Although majority owned by the state, we are committed to • As one of the few companies still using diesel to power
good corporate governance. Creating shareholder value is our ferronickel smelters (given the company was previously
objective. We are transparent and we treat our shareholders subsidized), there is still room to significantly reduce cash
– majority and minority – equally. costs and regain our position as a low cost producer of
ferronickel.
• We are a vertically integrated mining company with expertise
ranging from exploring, discovering, excavating, processing • As a State-Owned Enterprise, Antam will likely benefit from
and refining mineral deposits to marketing them. domestic policies prioritizing national companies.
• Strong operational track record. With nearly four decades of

experience, our company has proven its ability to locate and Threats and Challenges
discover deposits through our exploration unit, Geomin. We
have been profitably constructing and operating sustainable • Commodities are cyclical. Prices will go down someday as new
processing plants as well. supplies come to the market and/or demand dries up. We have
to mitigate this threat by becoming a very competitive low cost
• Diversified customer base with long term relationships with producer in order to maintain margins and still make money.
loyal blue chip companies. We are not over-exposed to any
single market or region. • Threat of substitution. While there are no good substitutes for
nickel in stainless steel production, manganese can be used
• Financially prudent, we have a robust balance sheet and to make a lower quality 200 series stainless steel that may be
strong cash position. We are poised to make investments used in more applications if prices remain too high. If the price
and grow. remains too high for too long, stainless steel users may opt
to use lower quality stainless steel and make more frequent
• Head-quartered in a mineral rich archipelago where returns and replacements and repairs. This would amount to a seismic
112 margins of doing mining business are higher than average. shift in the way stainless is used, as high quality 300 series
was always preferred given the overly high costs of corrosion.
WEAKNESSES • Interference by politicians and bureaucrats. We mitigate

these interferences by being transparent and by playing by
• Our ferronickel cost is relatively high due to the costly diesel the rules as stipulated by the Indonesian as well as Australian
fuel used in our smelters. Once we convert to cheaper fuel, stock exchanges.
targeted in 2010, we will regain our position as a low to middle
cost ferronickel producer. • Increased licensing difficulties in view of decentralization
drive. We mitigate this threat by continuously nurturing good
• Relatively small size with small global market share compared relationships with the central and regional governments and
to global mining players. Bargaining power towards large local communities as well as by explaining to them the virtues
customers is not too strong. By leveraging our strengths and of taking longer views and investing in processing facilities.
capitalizing the opportunities, we will have to grow as fast as
possible to realize our vision of becoming a global company • Continuing high oil price environment. We have to mitigate
by the next decade. this threat by converting to cheaper sources of energy as
soon as possible.
• Located in a non-investment grade country, our cost of
capital is relatively more expensive compared to large global • Realizing our joint ventures with partners from China to jointly
companies head-quartered in investment-grade countries. develop alumina processing facilities has been challenging
Through continuously improving investor relations we try as their main interests are generally more about securing
to create understanding about our company in the capital bauxite supplies than developing processing facilities. To
market so that we are fairly and accurately valued, to help overcome these challenges we carefully negotiate the terms
lower the cost of capital. and conditions of our agreements.

Risk Management
How We Manage Risk
114
Risk Statement
115
113

How We Manage Risk

Mining is a slow-yielding, capital intensive and risky business. It takes years and a large amount of capital to explore, discover and
develop new mining sites and build smelting plants. The expenditures for exploration programs, known as “risk capital” might not be
recoverable since there is no guarantee that such programs will result in discovery of mineable deposits. Meanwhile, it will take two
to three years to develop smelting plants and they can further be delayed by disruptions or cost overruns, which are not uncommon
in this industry.
Fully aware of the various risks we have to face, we proactively strive to improve our risk management capabilities. In 2003, we
formed a commissioner-level Risk Management Committee with the task of creating a risk philosophy and approving risk policies
formulated by the business units. In 2006, we further integrated and aligned the management of risk to our strategy by establishing
an Enterprise Risk Management (ERM) unit that reports directly to our Board of Directors. The ERM unit’s tasks include among
other things: 1) identifying, mapping, measuring and assessing risks based on the approved risk policies and related regulations; 2)
ensuring proper coordination between various risk management functions within the company; and 3) ensuring that effective action
plans are in place. Among the most critical risks faced by our company that we have to be aware of and if possible control are:
Country Risks:
Substantially all of our assets and operations are located in Indonesia. We may be adversely affected by changes in the Government,
Government policies, social instability or other political, economic, legal, regulatory or international developments in or affecting
Indonesia such as terrorist activities, separatist movements, religious and ethnic clashes and tensions, demands of local governments
and labour activism and unrests. The causes of the above risks are beyond our control. However, we are of the view that we know how to
do business in this country very well, that we have a competitive advantage over others in operating a mining business in Indonesia, that
the country is moving in the right direction, and that Indonesian country risks will eventually decrease rather than increase in the future.
Regulatory Risks:
The decentralization drive in the post-Soeharto era has created regulatory uncertainties with regards to licensing, royalties and
other permits and regulations. We manage risks related to mining licenses by maintaining very solid relationships with all levels of
government from the central government to local leaders as well as with local communities. A possible solution to the regulatory risk
is the draft mining law which will bring certainty (although not enforcement) to the issues miners face. One provision in the proposed
law may curb the surge in low value-added ore exports out of Indonesia and while doing so cause us to forego a portion of our
revenues. However, this clause is not likely be enforced immediately but applied in 3 to 5 years from the passing of the new law, in
order to give companies like ours time to implement previously made plans to move downstream.
Operational Risks:
Operational risks are risks that negatively impact our day to day business operations, the health and safety of workers, the environment
and the surrounding community. These risks include among other things strike actions, non compliance towards standard operational
procedures, illegal mining and failures in environmental management. To minimize these risks, we continuously train and educate
our workforce, appoint world class contractors, implement a zero-accident policy, maintain good relations with workers and
local communities, and maintain globally accepted environmental standards. To help ensure we meet international standards of
management and environmental management, we are ISO-certified at our nickel and gold facilities and precious metal refinery.
Strategic Risks:
Strategic risks are risks associated with strategic direction of the company. They are driven by uncertainties concerning company
114 policy, budget, or a change in stakeholder requirements. Strategic risks include project delays or unrealised projects, potential loss of
opportunity in acquiring new business acumen and initiative development such as change management, and efficiency improvement
initiatives and the potential of wrongfully selecting a strategic partner.
Commodity Price Risks

Commodity prices are volatile and rise and fall in line with changes in supply and demand. Currently there is a strong risk that average
annual nickel prices will fall from the peak of 2007. While our customer base is diversified and we are not dependent upon any single
market, our revenue would still be negatively impacted by falling prices. To mitigate this risk we may conduct hedging activities,
with the main goal of protecting our revenue budget. However, certain hedging positions may also cause us to forgo the upside
potential in an increasing price environment. As well, we also maintain a “natural hedge” by having a diversity of revenue streams
and products.
We feel commodity price risk is better managed by lowering our production costs. We are committed to replacing diesel fuel as our
main source of energy with other less expensive fuel, such as natural gas, hydropower or coal. We recently signed a deal to acquire
15 megawatts from a run-of-river hydropower plant. We have also made efforts to lower costs by renovating and replacing older
equipment, boosting production volumes and reducing the size of our workforce.
Currency Risks
Our revenue and cash are substantially all in US dollars while the majority of our operating costs are in Rupiah. Although our debt
is all in US dollars, we are generally adversely affected when the US dollar weakens against the Rupiah. To mitigate this risk we
occasionally enter into hedging arrangements. Under our foreign currency hedging policy, we may only hedge to an amount not
exceeding 30% of our monthly working capital requirements.

Risk Statement
115

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Mining is a slow yielding, capital intensive
and risky business. Investors who take long
investment horizons are likely to be the ones
who will obtain the highest rewards.

Corporate Governance of Antam

Assessment of Antam’s Corporate Governance Report
118
Statement on the Status of Corporate Governance Practices

120
Reports from the Commissioner-Level Board Committees
125
Adoption of the ASX Corporate Governance Principles and Recommendations

140
Adoption of the Indonesian Code of Good Corporate Governance

143
117

Assessment of Antam’s Corporate

Governance Report
Plaza ABDA, 10th & 11th Floor
Jl. Jend. Sudirman Kav. 59 Jakarta 12190,
Indonesia
Phone: (62) (21) 5140 1340
Fax: (62) (21) 5140 1350
www,rsm.aajassociates.com
Board of Commissioners and Directors

PT Antam Tbk.
We have assessed management’s assertions that the Gorporate Governance Statement of PT Antam Tbk. (Antam) for the
year ended December 31, 2007 is presented in accordance with the 2nd edition of Australian Securities Exchange Corporate
Governance Principles and Recommendations (2007 ASX CG Principles and Recommendations) issued by the ASX Corporate
Governance Council. Antam’s management is responsible for the assertions.
The assessment was conducted through document reviews and interviews at Antam’s head office. We did not validate the
information provided by management in the course of this assessment. It is the responsibility of Antam’s management to
ensure that the information provided to us was in fact true, accurate, and up to date. We believe that our assessment provides
a reasonable basis for our conclusion. Our conclusion does not provide legal determination on Antam’s compliance with
specified requirements.
Our assessment concludes that management’s assertions referred to above is fairly presented in accordance with the 2007
ASX CG Principles and Recommendations, and is summarised below.
LAY SOLID FOUNDATIONS FOR OVERSIGHT AND MANAGEMENT

Antam has established and adequately disclosed the respective roles and responsibilities of the Board Commissioners and the
Board of Directors, that is clear, and includes a balance of authority to avoid excessive power of any single individual and enables
a proper framework to assist in understanding the respective accountabilities and contributions of the Board of Commissioners
and the Board of Directors, and of each executive director. Improvement opportunities include utilising a letter of appointment
for newly appointed board members and the disclosure of the performance review of senior executives.
STRUCTURE THE BOARD TO ADD VALUE

Antam has a board that collectively is able to discharge its responsibility as imposed by the prevailing laws and regulations, and
add value to the company. Improvement opportunities exist in disclosure of the Board of Commissioners and its committees’
performance evaluation, and also in further elaborating the procedures for induction of new board members.
Ethical and Responsible Decision-Making

Antam has conducted a sufficient effort in promoting ethical and responsible decisions, to comply with legal obligations, and
118 to consider reasonable expectations of their stakeholders. We noted that Antam has also established frameworks to support
the ethical building within the organization, through refinement of its code of conduct, requirement of an annual statement to
comply with the code of conduct, and a whistleblower mechanism. The code of conduct is posted at Antam’s intranet portal
for internal socialisation, and at its website for external socialisation. Nevertheless, there are still areas for improvements to
optimise the current practices and mechanism. Therefore, Antam needs to develop and conduct a formal program to regularly
socialize the code of conduct and monitor its implementation. In addition, opportunity for improvements also exists to further
refine the accountability of the whistleblower mechanism.
Safeguard Integrity in Financial Reporting

Antam has put in place a structure of review and authorisation designed to ensure the truthful and factual presentation of
the company’s financial statements, through establishment of an audit committee that has considerable involvement in
assessing finance related aspects within Antam and by establishing a process to ensure the independence and competence
of external auditors.

Make Timely and Balanced Disclosure

Antam has disclosed its financial and operational performance in a timely and balanced way; however it has not been done
at the same level regarding its governance information. The policy regarding disclosure of information or its summary needs
to be disclosed when finalised.
Respect the Rights of Shareholders

Antam has provided frameworks, to empower shareholders in communicating with Antam and in participating in the
General Meeting of Shareholders, and also access to information regarding the company’s operations, including
financial information.
Recognise and Manage Risk

Antam has developed a sound policy regarding the risk management and internal control system, and in identifying and
managing its material business risks. However, Antam might lack a supporting structure to assist its policy, predominantly in
the financial reporting risks.
Remunerate Fairly and Responsibly

Antam has provided a framework to ensure that the level and composition of remuneration is sufficient and reasonable and
linked to performance, to the extent that it does not go beyond the prevailing laws and regulations that govern Antam as a
State Owned Enterprise in Indonesia.
Antam’s current level of adoption within each principle of the 2007 ASX CG Principles and Recommendations are as
marked below.
ASX Principles
Good Need Improvement Poor
Lay solid foundations for management and oversight.
Structure the Board to add value.
Promote ethical and responsible decision-making.
Safeguard integrity in financial reporting.
Make timely and balanced disclosure.
Respect the rights of shareholders.

119
Recognize and manage risk.
Remunerate fairly and responsibly.

Scale :
Good represent outstanding practice or consistently good and full adoption of recommendation.
Poor represent no adoption of recommendation whatsoever and need significantly improvement.
Amir Abadi Jusuf

Chief Executive Partner
March 24, 2008

Statement on the Status of

Corporate Governance Practices
Corporate Governance is a dynamic force that keeps evolving. PT Antam Tbk. (Antam) believes
that Good Corporate Governance (GCG) is a system that needs to be executed consistently and
continuously to achieve sustainable growth through a management practices system based on the
principles of transparency, accountability, responsibility, independency and fairness.
Becoming a listed company in Indonesia in 1997 and in Australia in 1999 has also moved
Antam forwards in continuously improving its corporate governance practices to optimise
the value of the company for its shareholders by also taking into consideration the interest of
other stakeholders. Nation-wide, as one of the largest state-owned enterprises (SOE), GCG
implementation at Antam is sometimes used as example for other SOE; in due course this
could also be beneficial to enhance market confidence which may promote investment flow and
sustainable economic growth for the nation.
Some significant instances of GCG practices that took place in the fiscal year 2007 include the
finalisation of corporate policy manual, performance review of individual executive directors and
of board-level committees, continuing enterprise risk management implementation, corporate
sustainability report, and development of policies to support improvement of its governance
practices. Overall, Antam is continuously improving its governance practices compared to previous
years, and the individuals within are enthusiastic to take necessary actions to improve it.
Even more, Antam is accelerating the adoption of the new 2007 ASX Corporate Governance
Principles and Recommendations (2nd edition, year 2007) as suggested by the ASX Corporate
Governance Council, and reports its corporate governance practices as assessed using the
revised principles and recommendations.
Description of Antam’s governance structure and practice are provided below, including the
adoption on ASX Corporate Governance Principles and Recommendations and Indonesia Code
of GCG issued by the National Committee on Governance, during the fiscal year 2007.
GOVERNANCE STRUCTURE
Based on the Indonesia Corporation Law No.40 of year 2007 (Indonesia Corporation Law),
the organs of a company consist of the General Meeting of Shareholders (GMS), the Board of
Commissioners (BOC), and the Board of Directors (BOD).
The management of a limited liability company in Indonesia uses a two board system, namely the
BOC and the BOD, each of which has a clear authority and responsibility based on their respective
120
functions as mandated by the Articles of Association and laws and regulations. Based on the legal
framework, the function of independent directors in a single-board system is represented by the
function of the BOC in a two-board system.
General Meeting of Shareholders

Board of Directors Board of Commissioners
Environment Corporate Risk Internal Audit Audit Nomination Risk Good Enviroment &
and Post Secretary Management Unit Committee Remuneration Management Corporate Post-Mining
Mining Unit Unit & HR Committee Governance Committee
Development Committee
Certain management divisions work closely with related

BoC-level committees

General Meetings of Shareholders

The GMS facilitates shareholders to make important decisions regarding their investment in
If you could tell Antam’s Antam, by observing provisions in the Articles of Association and the rules and regulations.
management one thing, Decisions taken in the GMS must be based on the long term interest of a company. The GMS and
what would that be? or shareholders cannot intervene in the exercise of the duty, function and authority of the BOC and
Investor Perception Survey the BOD, without curtailing the authority of the GMS to carry out its rights in accordance with the
Articles of Association and laws and regulations, including the replacement or termination of the
members of the BOC and or the BOD. Decisions made in the GMS must be conducted properly
and transparently by considering matters necessary to safeguard the long term interest, including
Good disclosure
but not limited to the appointment of members of the BOC and the BOD, approval on reports
and prudent capital
submitted by the BOC and the BOD, appointment of independent external auditors, appropriation
management are of remuneration and dividends.
key drivers of lower
cost of capital. The GMS has authorities that are not delegated to the BOC or the BOD, to the extent regulated by
Indonesia Law. In the GMS forum, shareholders are entitled to obtain related information about the
company from the BOD and or the BOC, to the extent that it is related to the agenda of the meeting
and does not contradict the company’s interest. GMS does not have the authority to decide on
certain matters, unless all shareholders are present and or represented in the GMS, and concurs
with the agenda of meeting. Shareholders, individually or represented by a proxy are entitled to
attend the GMS and use its voting rights in accordance with its shareholding. For the 2007 GMS,
notices to inform and invite shareholders were sent in accordance with prevailing requirements,
and published in three newspapers, in Bahasa Indonesia and English. The invitation notice and
proxy form were also posted at Antam’s website. The agenda of the GMS was included in the
notice. Shareholders that will attend the GMS can request the agenda and necessary supporting
information from Antam; the articles of association also provide explanation as to the availability of
procedures for shareholders to do so.
The Boards
Members of the BOC and the BOD were appointed in the GMS. The BOC and the BOD, each of
which has a clear authority and responsibility based on their respective functions, as mandated
by the articles of association and laws and regulations, and further elaborated into charters of
each respective board. Both have the responsibility to maintain the company sustainability in
the long term. Accordingly, the BOC and the BOD must have the same perception regarding the
company’s vision, mission and values. In providing the framework that support this, Antam has
developed a company policy manual and a code of conduct that was signed by all members of
the BOC and the BOD. The document clearly defined the vision, mission, and values of Antam; 121
the framework supporting Antam’s operation, which includes among others policies on strategy-
making, organisation structure, corporate secretarial function, oversight and control system,
risk management, ethical standards, communication mechanism, legal, operational, human
resources, finance and accounting, information technology, procurement, and corporate social
responsibility (CSR).

Collectively, the BOC and BOD has the expertise to discharge its mandate effectively, it is
supported with members that have proper understanding of, and competence to deal with,
the current and emerging issues of the business; exercise independent judgement; encourage
enhanced performance of the company; and can effectively review and challenge the performance
of management. Members of the BOC have various backgrounds in finance, engineering, mining
and management; whilst four members of the BOD have more than twenty experience within the
company, and one director previously held a position in the Ministry of Finance.
As at June 2007, one of the independent commissioners resigned from his position as a member
of BOC, and two commissioners retired from the Ministry of Energy and Mineral Resources.
Therefore the composition of independent board members has increased from 30% to 44% as at
December 2007.
Board Name Independency Status

Board of Commissioners Ir. Wisnu Askari Marantika (President Commissioner) Independent
Ir. Suryo Suryantoro, MSc. Independent
Ir. Supriatna Suhala, MSc. Independent
Prof. Dr. Ir. Irwandy Arif, MSc. Independent
Board of Directors Ir. Dedi Aditya Sumanagara (President Director) Not Independent
Ir. Darma Ambiar, MM Not Independent
Kurniadi Atmosasmito, SE, MM Not Independent
Ir. Alwin Syah Loebis, MM Not Independent
Ir. Syahrir Ika, MM Not Independent
The Board of Commissioners

The BOC as an organ of the company, functions and is collectively responsible for overseeing
and providing advice to the BOD and ensuring the company implements GCG. However, the
BOC is prohibited from participating in making any operational decisions. Each of the members
of the BOC, including the chairman, has an equal position. The duty of the chairman of the
BOC as primus inter pares is to coordinate the activities of the BOC. The BOC is accountable
to the GMS.
The BOC includes only non-executive directors defined by ASX and must have at least three
members. The members of the BOC are appointed by shareholders at GMS. The composition and
size of the board is determined by considering the vision, mission, and strategic plan of Antam to
enable independent, effective, accurate, and timely decision making. Based on a GMS decision in
122 2003, the BOC consists of five members, with at least 2 independent commissioners, one of which
act as the chair of the board. Throughout 2007, the BOC held a total of twenty four meetings, in
which 12 meetings were internal meetings and 12 meetings were with the Board of Directors.
Board of Commissioners Shareholdings of Antam1 Number of Meetings Held: 24
Ir. Wisnu Askari Marantika -
Ir. Suryo Suryantoro, MSc. -
Ir. Supriatna Suhala, MSc. 282 500
Ir. Yap Tjay Soen, MBA2 -
Prof. Dr. Ir. Irwandy Arif, MSc. - Commissioners meet regularly

to ensure effective supervision.
1
Number of shares owned as at 31 December 2007.
2
Resigned as at 1 June 2007.

ASX Independency Criteria Ir. Wisnu Askari Marantika Ir. Suryo Suryantoro, MSc. Ir. Supriatna Suhala, MSc. Prof. Dr. Ir. Irwandy Arif, MSc.
Not a member of management. Comply Comply Comply Comply

Free of any business or other relationship
Comply Comply Comply Comply
that could materially interfere judgment.
Not a substantial shareholder of the
company or an officer or associated
Comply Comply* Comply* Comply
directly with a substantial shareholder of
the company.
Not an employee or has previously been
employed in an executive capacity by
the company or another group member, Comply Comply Comply Comply
at least in three years before serving
the board.
Not a principal of a material professional
adviser or a material consultant to the
company or another group member, or an
employee materially associated with the
service provided, at least 3 (three) years
before serving the board.
Not a material supplier or customer of the
company or other group member, or an
officer of, or associated directly or indirectly
with a material supplier or customer.
Does not have a material contractual
relationship with the company or another Comply Comply Comply Comply
group member other that as a director.
Does not have any family ties and
cross-directorship which may affect Comply Comply Comply Comply
independency.
Status Independent Independent Independent Independent
*Comply as at 31 December 2007, effective on the retirement date of the individual from Ministry of Energy and Mineral Resources.
The role and responsibilities of the BOC is aligned with those stated in the company’s articles of
association, and further described in the charter signed by all members of the board, with the
latest update made on December 2007 and include:
• Oversight on the management of the company by the BOD, and approval of the company’s
development plans, the long-term and annual budgets, the implementation of the articles of
association, GMS decisions, and prevailing laws and regulations;
• Conduct specific tasks assigned to the BOC at the GMS;
• Carry out tasks, authority, and responsibility in accordance with the article of association and
prevailing laws and regulations;
• Review the annual report prepared by the BOD; 123
• Monitor effectiveness of GCG and CSR practices;
• Determine Key Performance Indicators (KPI) of the BOD at the beginning of each year;
• Conduct evaluations of the BOD’s performance;
• Determine a transparent nomination, evaluation, remuneration system for the BOC, BOD and
senior executives, by also considering the input from the Nomination, Remuneration, and Human
Resources Development Committee (NRHRD Committee), to be recommended and approved
by the GMS;
• Continuously enhance competency and knowledge to enable professional management.

The performance evaluation of the BOC is to be conducted by the NRHRD Committee, using a
self-assessment or peer evaluation system as decided in the BOC meeting, and the results is to
be communicated to the GMS. The evaluation is to be conducted by using criteria stipulated in
the company’s policy manual, such as attendance in board meetings and committee meetings.
In addition, both individually and collectively, evaluation is to be conducted on the integrity.
Knowledge and understanding of values, mission, vision and the company’s plans.
The actual performance evaluation of the BOC in 2007 was conducted by utilising the self-
assessment system on the collective performance of each BOC committee by measuring the
achievement of its annual plan. There is no specific performance evaluation conducted on the
BOC, as each Commissioner, as part of its oversight role, is also a member of a committee.
Performance evaluation for the BOC was not linked directly with BOD remuneration, as the
remuneration was determined by the GMS, and calculated on a set proportion of the President
Directors remuneration in accordance with a letter from Secretary of the Ministry of SOE No. S-
326/S.MBU/2002 dated 3 May 2003.
The Indonesian Law No.40 of year 2007 regarding Limited Liability Company states that the
remuneration of the BOC is determined by the GMS. The BOC charter stipulates that remuneration
for members of the BOC is provided based on a formula set by the GMS, which was previously
reviewed by the NRHRD Committee, and the remuneration must not be based on the company’s
performance. The BOC is not allowed to receive remuneration that is specifically related to its
oversight function.
Position Monthly Remuneration Total Remuneration Annual Annual Remuneration

Remuneration + Bonus
Basic Allowance + Bonus
Salary
Housing Transportation Electricity & Monthly Annual 2007 2006
Communication
President Commissioner 29,250 3,500 3,000 3,000 38,750 465,000 708,750 1,232,250 719,760
Commissioner 26,325 2,850 3,000 2,400 34,575 414,900 637,875 1,105,425 648,984
Note: Presented in IDR million
In 2007, the BOC attended trainings, seminars and conferences as participants and as presenters,
on topics among others related to GCG, human resources, oversight of SOEs, and investing in
mining. To bring an independent judgment to bear on board decisions, as stipulated in the BOC
charter, whenever deemed necessary, the BOC has the right to obtain assistance from experts in
performing its duties for a certain period of time at the company’s expense.
124 To support its oversight function, the BOC established five committees at the board level, that
include the Audit Committee, the NRHRD Committee, the Risk Management Committee, the
GCG Committee, and the Environment and Post-Mining (EPM) Committee. Each committee
is chaired by a member of the BOC, and each committee’s roles and responsibilities are
documented in a charter.

Commissioner - Level Board Committees

Name Committee Position Outside Antam
GCG NRPSDM AUDIT RM LPT
Ir. Wisnu Askari Marantika C Vice President Commissioner of PT Infoasia Teknologi
President Commissioner Global Tbk.
Ir. Suryo Suryantoro, MSc. C Inspector General of the Department of Energy and
Commissioner Mineral Resources. Retired since December 1, 2007.
Ir. Supriatna Suhala, MSc. C Executive Director, Indonesian Coal Mining Association
Commissioner
Ir. Yap Tjay Soen, MBA.* C President Director of PT Tuban Petrochemical Industries and
Independent Commissioner Independent Commissioner of PT Bank Mandiri Tbk.
Resigned as Independent Commissioner of Antam since June 1, 2007.
Prof. Dr. Ir. Irwandy Arif, MSc. C Head of Internal Committee of the Board of Trustee of
Independent Commissioner Bandung Institute of Technology
Ir. A. Dohar Siregar M President Commissioner of PT Nusa Halmahera Minerals
DR. Edison Panjaitan M Director of Postgraduate Program
University of Bhayangkara Jakarta Raya
Susy Pasaribu Tumangkeng M -
Ir. Amir Faizal Suud M Former Senior Lecturer, Geology and Education Training Centre
Department of Energy and Mineral Resources
Nursaleh Adiwinata MSc. M Former Head of Education and Training Centre of
Mineral and Coal Technology
Ir. Nani Koespriani, MBA M Commissioner of PT Agung Automall & PT Agung Concern
Dra. Nina Insania K. Permana, MM M Senior consultant at PT Binaman Utama PPM Jakarta, Senior
Assessor of PPM, lecture at Lembaga Manajemen PPM and
the Master’s program of Sekolah Tinggi Manajemen PPM Jakarta.
Drs. Kanaka Puradiredja, Ak. M Ex Senior Partner of Public Accountant Firm Kanaka Puradiredja,
Robert Yogi, Suhartono.
Drs. Eddie M. Gunadi, QIA. M Senior Partner of Public Accountant Firm BDO
Tanubrata, Sutanto, Sibarani and Chairman of FCGI.
Edwar Nurdin, Ak. MA. M Sub Division Head of Verification and Accounting
Ministry of State Owned Enterprises
Alida Basir Astarsis, SE. Ak. M Senior Project Controller, PT Unilever Indonesia Tbk.
Member of Audit Committee PT Total Bangun Persada Tbk.
Sutirta Budiman, CFA M Advisor of Corporate Banking Division,
PT Bank Negara Indonesia (Persero) Tbk.
Dr. Ir. Bambang Setiawan M Secretary of Directorate General of Mineral, Coal and Geothermal.
Prof. Dr. Ir. Made Astawa Rai M Deputy Minister Resources Development.
The State Ministry for the Development of Disadvantaged Regions. 125
Ir. Gde Suratha, MSc. M Senior Researcher of Geotechnology
and Development of Mineral and Coal Technology
Dra. Siti Rafiah Untung M.Env.St M Senior Researcher of Mining Environmental of Research and
Development Centre of Mineral and Coal Technology
Remark:
C = Chairman
GCG = Good Corporate Governance
M = Member
NRPSDM = Nomination, Remuneration and HR Development
LPT = Environment and Post Mining
RM = Risk Management
*Resigned as of June 1, 2007

Report of the Audit Committee

The main function of the Audit Committee is to assist the Board of Commissioners to perform its
supervisory duties, which are to ensure that:
1. The publicized financial report has fulfilled the existing regulations, including the use of the
proper accounting standards;
2. The business risk has been managed properly and sufficient internal controls are in place;
3. The business activity has been conducted ethically and according to the existing regulations;
4. The selection and appointment of the external auditor is according to the corporate needs and
existing regulations;
5. Non audit services being performed by third party does not effect the independency of the
external auditor, and;
6. The internal auditor has performed sufficiently.
In 2007, the main focus of the Audit Committee was to improve the performance of the internal
auditor, by way of overseeing the development of the risk-based internal audit and suggesting
necessary improvements to the internal auditor.
Besides efforts to improve the performance of the internal auditor, the Audit Committee and the
Risk Management Committee also met to discuss important corporate issues such as activities
related to the accounting process and formulation of financial statements, investment on projects
with third parties and management of the pension fund.
In 2007, the Audit Committee held 24 meetings.
Name Independency Status Position No. of Meetings

Attended
Prof. Dr. Ir. Irwandy Arif, MSc. Independent Chairman 23
Drs. Kanaka Puradiredja, Ak. Independent Member 20
Drs. Eddie M. Gunadi, QIA. Independent Member 18
Edwar Nurdin, Ak., MA. Not Independent Member 23
Alida Basir Astarsis, SE, Ak. Independent Member 16
Audit Committee Biographies (Not Including Member from BoC)

126
Drs. Kanaka Puradiredja, Ak. - Member
Joined Antam’s Audit Committee in 2004. Graduated in Accounting from Padjadjaran University,
Bandung in 1971. He was Managing Partner and Chairman of KPMG Indonesia for more than
20 yars and since 2000 until November 2007 was Senior Partner KAP Kanaka Puradiredja,
Robert Yogi, Suhartono. Currently he is the Chairman of the Honorary Council of the Indonesian
Accounting Association, Chairman of the Indonesian Audit Committee Association, member
of the Honorary Council of Professionals in Risk Management Association and the member of
the Supervisory Board of the Aceh Rehabilitation and Reconstruction Body.

Audit Committee Biographies (Not Including Member from BoC)

Drs. Eddie M. Gunadi, QIA. – Member
Joined Antam’s Audit Committee in 2004. Graduated in Accounting from University of Indonesia
in 1975. He was in several finance positions at PT Pupuk Sriwidjaja. He was Finance Director
of PT Mega Eltra (Persero) and President Director of PT Cipta Niaga (Persero). Currently he is a
member of the Audit Committee at PT Bank Ekspor Indonesia and Partner KAP BDO Tanubrata
dan Rekan and Chairman of Forum for Corporate Governance in Indonesia (FCGI) and member
of the Honorary Council of the Indonesian Accounting Association.
Edwar Nurdin, Ak., MA – Member

Joined Antam’s Audit Committee in 2004. Graduated from the State Accounting Academy in
1992 and graduated in 1995 in Applied Economics at University of Michigan, USA. He worked
as public servant at the Department of Finance in 1985. Since 2006 until now he has worked at
the Ministry of State Owned Enterprise as Head of Sub Division of Verification and Accounting.
Alida Basir Astarsis, SE, Ak. – Member

Joined Antam’s Audit Committee in 2004. Graduated in Accounting from the Airlangga
University in 1979. She worked at PT Astra Graphia Surabaya and started her career at
PT Unilever Indonesia as Management Trainee in 1979 until her retirement as Group Audit
Manager in December 2004. Since January 2007 she was a member of the Audit Committee
of PT Total Bangun Persada.
GCG Commitee Report

On September 1 2007, the composition of the GCG Committee changed with the addition of Susy
Pasaribu, increasing the size of the committee to four people. The committee members are Wisnu
Askari Marantika, Antam’s President Commissioner who serves as the Committee Chairman,
and Dohar Siregar, Edison Panjaitan, and Susy Pasaribu who was the secretary of the Board of
Commissioners of PT Telkom Tbk.
The GCG committee has the task and responsibility to assist the Board of Commissioners to
ensure that GCG is the foundation of the company.
In 2007 the GCG Committee held 12 meetings. Six meetings were internal GCG meetings and six
other meetings were held with the GCG Implementation Team.
In 2007, the new Articles of Association were passed which accommodates the latest GCG issues
127
such as the requirement for the Board of Commissioners to have an Independent Commissioner
and the requirement for GCG implementation. Antam held a ane day GCG Workshop at the end
of November 2007, which acted to encourage the completion of the revised Corporate Policy
Manual. Members of the GCG Committee played roles in this workshop. The workshop discussed
among other things, CSR issues and alignment of GCG perception within the company.
To ensure the implementation of the Code of Conduct, all Antam’s employees signed a Personal
Commitment to the Code of Conduct during Antam’s anniversary on July 5, 2007.

Beginning in December 1, 2007, all of the board committees’ charters were revised in accordance
to the new laws and regulations. Revisions were also made to the Charter of the Board of
Commissioners and Board of Directors to accommodate new laws such as Corporate Law No.
40/2007 on Emissary Commissioner and CSR, and the requirement of Directorship training to
improve the competency from the Capital Market and Financial Institution Supervisory Board.

Attended
Ir. Wisnu Askari Marantika Independent Chairman 12
Achmad Dohar Siregar Independent Member 12
Edison Panjaitan Independent Member 10
Susy Pasaribu Tumangkeng Independent Member 5
GCG Committee BIOGRAPHIES (NOT INCLUDING MEMBER FROM BOC)

Achmad Dohar Siregar – Member
Graduated in Mining from the Bandung Insititute of Technology in 1973 and started his career
at Antam. He went through numerous trainings both in Indonesia and abroad before he
headed the Pongkor Gold Project in 1992–1994 and became the unit’s first general manager.
He received the Development Medal of Honor from the President of Indonesia on August 11,
1997 as an appreciation of the development of the Pongkor Gold Project. Starting in 1996, he
was Vice Chairman of the Privatization Team and then served as Antam’s Corporate Secretary.
Currently he is also a member of the Indonesian Mining Experts, and President Commissioner
of PT Nusa Halmahera Minerals. He also speaks frequently on GCG and Annual Reports in
numerous workshops.
Edison Panjaitan – Member

Joined Antam since 2004. Graduated from Faculty of Economics, Padjajaran University,
Bandung, and continued his master’s degree at University of Pittsburgh, PA, USA in
Development Economics and received doctoral degree in public policy from the same
university. Currently he is the Director of Post Graduate Programs of Bhayangkara Jakarta
Raya University.
Susy Pasaribu Tumangkeng – Member

Joined Antam as member of the GCG Commitee since September 2007. She started her career
128
at Bank Danamon for 10 years and last served as Head of Training and Development in 1999.
In 2000 she was the Secretary of the Deputy Minister of State-owned Enterprises of Mining,
Strategic Industry, Energy and Telecommunication. In 2000 she was the Assistant Secretary of
the Board of Commissioners of PT Indosat Tbk. and for four years from mid 2000 she served as
the Secretary of the Board of Commissioners of PT Telkom Tbk. In 2006 she joined Antam as a
Human Resources Advisor and currently is a member of the GCG Committee.

Environment and Post Mining Committee

The main task and function of the Environment and Post Mining Committee is to assist the Board
of Commissioners to supervise the effectiveness of the environmental management and post
mining activities in accordance to principles of good mining practices.
In 2007, the EPM Committee conducted reviews of the environmental management and post
mining planning and its implementation, oversaw the compliance to existing laws and regulations,
evaluated management’s policies on environmental management and post mining, revised the
committee’s charter, and conducted site visit to business units and benchmarked to PT Newmont
Nusa Tenggara. The committee held 12 internal meetings.
The EPM Commitee reviewed five environmental management and post mine planning and
implementation programs of Pongkor and Cikotok gold mines, Cilacap and Kutoarjo iron sands
mine, Kijang bauxite mine, and Pomalaa, Gebe, Buli, and Gee nickel mines.
The commitee viewed that in general the implementation of environmental management, mine
closure and post mining activities in 2007 was better than previous years. Efforts and preparation to
achieve PROPER Green from the Ministry of Environment increased significantly. It was expected
that PROPER Green will be obtained by Pongkor gold mine in 2008, Pomalaa nickel unit in 2009
and all business units in 2010.
In 2007, the committee recommended the recruitment of environmental and post mining staff with
proper qualification and in sufficient numbers. The committee also suggested the accelaration of the
use of modern technology, formulation and implementation of standard operating procedure, working
closely with universities and research centres, and to intensify coordination with local governments.

Attended
Ir. Supriatna Suhala, MSc. Independent Chairman 12
Prof. Dr. Ir. Made Astawa Rai Independent Member 10
Ir. Gde Suratha, MSc. Not Independent Member 12
Dra. Siti Rafiah Untung M.Env.St Not independent Member 3
129

ENVIRONMENT AND POST MINING Committee Biographies

(NOT INCLUDING MEMBER FROM BOC)
Prof. Dr. Ir. Made Astawa Rai – Member
Joined Antam in 2003. Graduated in Mining Engineering from Bandung Institute of Technology
(ITB) in 1976. He received a degree of Ingenieur Expert en Techniques Minieres (1980), Diplome
d’Etude Approfondie (1981), and Doctor (1984) from Ecole des Mines de Náncy France. He
was professor of Mining Engineering of ITB in 2003. He has various experiences in mining
and tunnel development as well as other various key positions at ITB. He was Deputy Junior
Minister of Development Acceleration of Indonesia’s East Region in Development Resources
(2001 – 2002), Deputy Minister of Development Acceleration of Indonesia’s East Region in
Development Resources (2002 – 2005). Currently he is Deputy Minister of Less Developed
Regions in Resources Development.
Ir. Gde Suratha, MSc. – Member

Joined Antam in 2005. Graduated in Mining Engineering from Bandung Institute of Technology
(ITB) in 1977, and received Master of Science in Geomechanics from ITB in 1993. He became
a civil servant at the Centre of Research and Development of Mineral and Coal Technology
holding various key positions such as Head of Geotechnic Laboratory, Head of Engineering
and Design, Coordinator of Mining Geotechnolgy Group Program and becoming a senior
researcher until now.
Dra. Siti Rafiah Untung M.Env.St - Member

Joined Antam in September 2007. Graduated in Biology from ITB in 1976, and received
Master of Environmental Studies from University of Adelaide in 1993. He became civil servant
at the Centre of Research and Development of Mineral and Coal Technology as researcher in
environmental fields and Senior Researcher.
Risk Management Committee

The Risk Management Committee has a responsibility to assist the Board of Commissioners by
giving independent and professional opinion to ensure the implementation of risk management
principles at Antam.
In 2007, The RM Committee held 22 internal meetings with Antam’s management, in which the
Audit Committee was also present at most of the meetings.
The main topics of discussion during the meetings were among other things, new projects,
130
formulation of financial statements, performance of Antam’s pension fund, audit from the state’s
finance examination body, and compliance, code of conduct and litigation status.
In the first five months of 2007, the committee was comprised of Yap Tjay Soen, Independent
Commissioner as Chairman and member, and Sutirta Budiman and Bambang Setiawan as
committee members. From June 1, 2007 until July 31, 2007, the committee’s chair was held by
Irwandy Arif, Antam’s Independent Commissioner, after which Antam’s President Commissioner,
Wisnu Askari Marantika, became the Chairman of the Committee with Irwandy Arif as Vice
Chairman inline with the resignation of Yap Tjay Soen.


Attended
Ir. Wisnu Askari Marantika*) Independent Chairman 10
Prof. Dr. Ir. Irwandy Arif M.Sc**) Independent Vice 13

Chairman
Ir. Yap Tjay Soen, MBA***) Independent Chairman 6
Sutirta Budiman, CFA Independent Member 15
Dr. Ir. Bambang Setiawan Not Independent Member 18

No. of meetings = 22
Joint meeting between Risk Management Committee and Audit Committee: 21 times.
*) Chairman of RM Committee as of 1 August 2007.
**) Chairman of RM Committee, June 1, 2007 – July 31 2007 and Vice Chairman since August 1, 2007.
***) Resigned as Commissioner and Chairman of RM Committee as of June 1, 2007.
Risk Management Committee Biographies

(NOT INCLUDING MEMBER FROM BOC)
Sutirta Budiman, CFA
Graduated in 1981 with Bsc. (Hon.) in Electrical Engineering from Imperial College of Science,
Technology and Medicine, London University, England. Started his professional career in 1982
by joining Citibank Executive Development Program. He held various positions at Citibank with
the last position as Vice President and Senior Risk Manager. At the end of 1989, Sutirta was part
of team which set up a new national private bank as Director of Risk Management. In 1993, he
joined PT. Aneka Kimia Raya Tbk., as Group Finance Director. At the end of 1997, he became
President Director pf PT. Asiana Multikreasi Tbk. Since the beginning of 1999, he has worked
as a consultant specializing in risk management and corporate finance. He is also a member of
Risk Oversight Committee of PT. Bank Negara Indonesia (Persero) Tbk. Since August 2005 and
since June 2007, Sutirta has been an Advisor for Corporate Division for BNI.
Dr. Ir. Bambang Setiawan

Member of the RM Committee since 2006. Graduated in Mining Exploration from ITB in 1976.
He received doctoral degree in economics geology from Ecole Nationale Supérieure Des
Mines de Paris in 1993. He started his career as expert staff in exploration at the National
Atomic Agency (1976-1978) and held various key positions before being appointed as
Program Director at the Directorate of Mineral, Coal and Geothermal (2005-2007). Since July
2007 he has been the Secretary of Directorate General of Mineral, Coal and Geothermal at the
131
Department of Energy and Mineral Resources.
Nomination, Remuneration and Human Resources Development Committee

The Nomination, Remuneration and Human Resources Development (NRHRD) Committee has
the tasks and responsibilities to assist the Board of Commissioners by giving a professional
and independent assessment to ensure the nomination, remuneration and human resources
development programs are in accordance with GCG principles.
The committee was comprised of five people with Antam’s commissioner as the chairman and
member. At the end of August 2007, the committee had two new members, Ir. Nani Koespriani,
MBA and Dra. Nina Insania K. Permana, MM.

In 2007 the committee held 22 meetings, with 8 internal meetings, 12 meetings with Antam’s
Director of General Affairs and Human Resources and staff and 2 workshops with the Board of
Commissioners and Board of Directors.

Attended
Ir. S. Suryantoro, M.Sc. Independent Chairman 22
Ir. Amir Faizal Suud Independent Member 22
Nursaleh Adiwinata M.Sc Independent Member 20
Ir. Nani Koespriani, MBA Independent Member 6
Dra. Nina Insania K. Permana, MM Independent Member 7
In 2007 the committee oversaw and gave guidance in the formation of the new organisation
structure, the formulation of job descriptions, and the 2010 Human Resources Master Plan.
The Committee has reviewed the calculation of salary, facility and other benefits for the Board of
Directors and Board of Commissioners in 2007 based on the 2006 performance. The committee
has also reviewed and gave suggestions in relation to the employees’ remuneration.
The committee views that the industrial relationship within Antam throughout 2007 was
good and fair.
Nomination, Remuneration and Human Resources Development

Committee Biographies (NOT INCLUDING MEMBER FROM BOC)
Ir. Amir Faizal Suud
An NRHRD Committee member since September 2004. Graduated from Mining Engineering
of ITB in 1976. He began his career at the Department of Energy and Mineral Resources as
Head of Bali, West Nusa Tenggara and East Nusa Tenggara and East Timor Office (1992-
1999), Head of North Sumatra Office (1999-2001), Task Force Team of Regional Autonomy
(2001-2004) and Senior Lecturer at the Geology Education and Training Centre (2002-2006).
He has experience in education such as a lecturer in geology of Hasanuddin University
Makassar (1978-1986), mining lecturer of Veteran RI University Makassar (1977-1991), and
Dean of Faculty of Engineering UVRI Makassar (1986-1991).
132
Nursaleh Adiwinata, M.Sc.
Has been a member of the NRHRD Committee since September 2006. Graduated from the
Bandung Geology and Mining Academy in 1970 and Master’s program from University of
Birmingham in 1981. After became Assistant Geologist of PT Alcoa Mineral of Indonesia
(1971-1975), he held various positions at the Department of Energy and Mineral Resources
before becoming Head of Training and Development of Mineral Technology (1998-2001) and
Head of Training and Development of Mineral and Coal Technology (2001-2006).

Ir. Nani Koespriani, MBA

Joined NRHRD Committee on September 1, 2007. Graduated in Planology Engineering of
ITB in 1980, and Graduate School of Business Administration, University of Denver Colorado,
USA in 1986. Currently holds a position as Commissioner of PT Agung Automall, and various
positions at Lembaga Manajemen PPM. She has experiences in management consulting such
as in PT Medco Energi International, PT Indonesia Power, Dharmala Group and Rumah Sakit
Islam Cempaka Putih. She is a lecturer in various workshops and programs held by PPM,
Center of Inter University at University of Indonesia and Master’s Program of Banking and
Finance at ITB.
Dra. Nina Insania K. Permana, MM

Joined NRHRD Committee on September 1, 2007. Graduated in Psychology from Padjadjaran
University in 1987 and has a Master’s degree in Management in HR from Sekolah Tinggi
Manajemen PPM Jakarta in 1997. Currently she is a senior consultant at PT Binaman Utama
PPM Jakarta, Senior Assessor of PPM, lecturer at Lembaga Manajemen PPM and the Master’s
program of Sekolah Tinggi Manajemen PPM Jakarta.
The Board of Directors

The BOD as a company organ, functions and is responsible collectively for the management of the
company. Each member of the BOD can carry out his duty and take decisions in accordance with
their respective assignments and authorities. However, the execution of tasks by each member of
the BOD remains to be a collective responsibility. The position of each respective member of the
BOD including the President Director (chairman of the BOD) is equal. The duty of the President
Director as primus inter pares is to coordinate the activities of the BOD. The BOD is accountable
to the GMS.
The BOD includes only executive directors and must have at least three members. The members
of the BOD are appointed by shareholders at a GMS. Based on a GMS decision in 2003, the BOD
consists of five members, one of which acts as the chair of the board. Throughout 2007, the BOD
held a total of twenty two meetings.
Board of Directors Shareholdings Number of Meetings Held: 22

of Antam1
Ir. Dedi Aditya Sumanagara 275,000
Ir. Darma Ambiar MM 271,250

133
Kurniadi Atmosasmito, SE, MM 155,000
Ir. Alwin Syah Loebis, MM 310,000
Ir. Syahrir Ika, MM -

1
Number of shares owned as at 31 December 2007.

The roles and responsibilities of the BOD are aligned with those stated in the company’s Articles of
Association, and further describe in the charter that was signed by all members of the board, and Members of the Board
was last updated on December 2007 and include:
• Manage, administer and ensure the implementation of Antam’s goals, strategies, and policies to of Directors also meet
achieve results, and continuously conduct activities that promote efficiency;
• Manage and administer the company’s assets; informally on a daily
• Prepare the long-term and annual budgets, and other plans related to the operation of the
company and submit it to the BOC for approval; basis to keep updated
• Ensure the implementation of GCG and CSR practices;
• Ensuring the availability and effectiveness of internal control systems to safeguard the on the latest company
company’s assets;
• Maintaining confidentiality on material information; issues.
• Implement Antam’s code of conduct; and
• Continuously enhance competency and knowledge to enable professional management of
the company.
In addition to the collective responsibility, each director function has its own roles and
responsibilities.
President Director
The President Director has the responsibility to coordinate, direct, and evaluate corporate and
business units tasks to ensure accordance with the already established vision, mission, targets,
strategy, policy and work program; to align internal initiatives and ensure the enhancement of
the company’s competitiveness; to coordinate the operation of the internal audit, investor
relations, public relations, internal relations, legal, and risk management functions, and to ensure
compliance with laws and regulations; to coordinate, direct, and evaluate internalisation and
consistent implementation of GCG principles and ethical standards within the company; to ensure
the availability of corporate related information whenever required by the BOC.
Director of Operations
The Director of Operations has the responsibility to coordinate, direct, and evaluate operational
tasks related to production, marketing, work safety, environment, maintenance and reengineering,
mining closure, and overseas representative offices; to develop efficiency and quality assurance
programs, and ensure its consistent implementation; to ensure the availability of corporate related
information whenever required by the BOC.
134
Director of Finance
The Director of Finance has the responsibility to coordinate, direct, and evaluate operational
tasks related to treasury, funding, accounting, budgeting, and information technology; to ensure
the availability of funding for the company’s development programs; to ensure the availability of
corporate related information whenever required by the BOC.

Director of General Affairs and Human Resources

The Director of General Affairs and Human Resources has the responsibility to coordinate, direct,
and evaluate operational tasks related to organisation, human resources, continuing education,
health, public service, community development, partnership and environmental programs, and
CSR; to maintain sound relationships with governments and other stakeholders and ensure that
the CSR activities are effective; to ensure the availability of corporate related information whenever
required by the BOC.
Director of Development
The Director of Development has the responsibility to coordinate, monitor, evaluate the development
and implementation of Antam’s long-term plans; to coordinate, direct, and evaluate operational
tasks related to exploration, research and development, feasibility studies, and construction
projects for the company’s growth; to maintain sound relationships with strategic partners and
develop new business opportunities; to ensure the availability of corporate related information
whenever required by the BOC.
The delegation of authority among members of the BOD can be conducted with proxy, and
delegation to senior management below the directors level as per the organisation structure,
however this does not transfer the ultimate responsibility and accountability.
The performance evaluation of the BOD was conducted by the BOC based on pre-established
KPI, and the result is to be communicated to the GMS. The evaluation for 2007 was conducted in
November 2007 by using criteria such as the BOD collective performance in achieving targets set out
in the long-term plan and annual budget, individual director performance in achieving KPI and targets
as set in the plan, and the implementation of GCG both individually and collectively. The KPI include
targets related to revenue growth, profitability, cost structure, solvability/leverage, sales, customer
satisfaction, innovation, operational process, operational risk, regulatory and environmental process,
integrated information technology, organisation climate, and employee skills and competency. In
addition, the BOC is also evaluated on aspects of conflict of interests, knowledge and understanding
of mission, vision, values, and the company’s plan and conformance with the Articles of Association,
GMS and BOC decisions, and with prevailing laws and regulations.
Currently the performance evaluation is not linked directly with remuneration, as the remuneration
was determined by the GMS, although the basis of proposing the remuneration to the GMS is by
using a formula developed by the NRHRD Committee, in consideration of the market rate, the
company’s earnings, return on assets, return on equity, achievement of KPIs, and in accordance
135
with the letter from Secretary of the Ministry of SOE No. S-326/S.MBU/2002 dated 3 May
2003. The Indonesian Law No.40 of year 2007 regarding Limited Liability Company states the
remuneration for the BOD is determined based on the GMS decision, which can be delegated to
the BOC and decided during a BOC meeting. The remuneration for the BOD is also stipulated in
the BOD charter, which states the remuneration for members of the BOD is decided at the GMS by
considering inputs from the BOC, and that the remuneration must be linked to performance, based
on the evaluation performed by the BOC and by considering inputs from the NRHRD Committee.

Position Monthly Remuneration Total Annual Bonus

Remuneration Remuneration
Basic Allowance
+ Bonus
Salary
Housing Transportation Electricity & Monthly Annual 2007 2006
Communication
President Director 65,000 14,000 2,500 4,500 86,000 1,032,000 1,575,000 2,737,000 1,805,400
Director 58,500 12,600 2,250 4,050 77,400 928,800 1,417,500 2,463,300 1,624,860
Note: Presented in IDR thousands.
In 2007, the BOD attended trainings, seminars and conferences as participants and as presenters,
on topics, among others, related to GCG, human resources, oversight of SOEs, and CSR.
In supporting its function, the BOD is assisted with a corporate secretary function, and has
established a system of internal controls and risk management that is supported by the existence
ethical standards, an internal audit function, and a risk management function.
Corporate Secretary
The Corporate Secretary assists the BOD in maintaining sound relationships with regulators
and capital market supporting institutions, investors, society and stakeholders, and to maintain
business related information. The function of Corporate Secretary is to develop relationships
strategy with stakeholders that can support the company’s activities, maintain the company’s
reputation so as to increase the company’s value, fulfil the company’s responsibility to the capital
market and shareholders according to prevailing laws and regulations, maintain good relationships
with governments, investors, and the media; to manage internal and external communication,
and direct subsidiaries in the company’s communication activities. Therefore, the responsibility of
Corporate Secretary function lies in the three main areas of:
• Investor relations and financial information management;
• Public and Internal Relations; and
• Administration of the corporate secretarial roles.
The function is responsible to manage information regarding the company’s profile, including
financial aspects, in an actual, accurate, truthful, and timely manner, based on management of
the market’s expectation with the purpose to increase company value. The Corporate Secretary is
responsible for public relations services or media relations and acts as the Company spokesman
to the public, mass media and capital market authorities.
In promoting effective communications with shareholders, Antam has developed a policy in which
the Corporate Secretary is to regularly and consistently announce Antam’s quarterly and annual
136 performance and planning through the mass media and related institutions in compliance with
applicable regulations. The communication policy is stipulated in the company policy manual.
Furthermore, Antam is also following the Indonesia’s Capital Market & Financial Institution
Supervisory Agency regulation No.X.K.1 of year 1996 regarding Disclosure of Information to the
Public. The Corporate Secretary is supported by guidelines which details the information that need
to be disclosed; the guidelines and rules related to the type of disclosure; and the format, contents
and distribution of information.

Access to information has been provided through Antam website at www.antam.com, which posts
Antam’s annual report, quarterly activities report, monthly exploration reports, announcements made
to Australian Securities (ASX), its share price on the ASX and IDX, and other news regarding Antam’s
operation. In addition, Antam also provides a special corporate governance section on its website.
Antam has also drafted a one door policy on communication with the stock exchange authorities,
investors and shareholders, public, media, and the government with regards to maintaining its
status as a listed company on the Indonesian Stock Exchange (IDX) and ASX; to ensure the
information given to shareholders and investors is factual; to ensure queries made are responded
to in an appropriate manner. Furthermore, a disclosure policy has been drafted, which identifies
who is responsible for the disclosure of different kinds of information; the criteria of a material
information; and methods of disclosure; and deals with such topics as confidentiality, insider trading,
authorised spoke person, misleading information and rumour management, communication with
investment society, media, and regulators and electronic communications. These policies are to
be finalised in 2008.
Ethical Standards
To support ethical and responsible decision making, Antam has developed an ethics policy that
was formalized in the company policy manual, and further elaborated in the code of conduct. The
document was developed as a practical guideline for members of the BOC, the BOD, Committees,
and all employees in interacting with all parties, to be used as basis in decision making process,
and in supporting the creation of a positive working environment. Antam encourages observance
of the standards and is committed to its implementation. Antam has obliged supervisors at each
level to enure the code of conduct is adhered to in each of their areas. The code of conduct is
applicable to all individuals that act on behalf of Antam, its subsidiaries and controlled affiliation,
and also for business partners that interact with Antam. It was signed by all members of the BOC
and BOD, which set the tone from the top as regards the commitment to set ethical standards at
Antam. In supporting and maintaining confidence in Antam’s integrity, each individual is mandated
to sign a Personal Ethic Statement on an annual basis. Furthermore, Antam has also established
“Helpline Antam” as its whistleblower mechanism, which enables reporting to be made through
telephone and email.
Antam has also established a policy concerning trading in the company’s securities by directors,
senior executives and employees, which is available in the conflict of interest and confidentiality
section at Antam’s code of conduct. Each individual, including directors and senior executives are
prohibited to trade Antam’s share if they are privy to information that might have influence on share 137
prices, and approval from senior management is required prior to any such trading. A separate and
more detailed policy and procedures regarding this issue has also been developed and planned
will be finalised in 2008.

Internal Audit
The Internal Audit’s role in supporting risk management practices at Antam, as stated in the
company policy manual, is to asses the risk related to all business processes by considering
the objective of each process, key risks of each process, and the performance indicator of each
process. Furthermore, as stated in the internal audit charter, the unit conducts examinations to
ensure that internal controls, risk management, and the implementation of GCG practices on
processes within Antam has been conducted according to the prevailing regulations. The Internal
Audit also provides consulting services and acts as a catalyst to assist management and the
auditee in achieving their targets and objectives. As well, the unit acts as a competent partner
to the Audit Committee in carrying its oversight function. The internal audit reports directly to the
President Director, and is independent of the external auditors, this is aligned with the Standards
of Internal Auditors issued by the Institute of Internal Auditors. During year 2007 the unit submitted
fourteen audit reports to management. The Chief Audit Executive is appointed by the President
Director in consideration of suggestions from the BOC, through its Audit Committee.
The scope of this unit covers a review of the company’s performance, GCG implementation, post-
mining, remuneration, whistleblower reporting, and reporting of risks and implementation of risk
management. The objective is to help ensure the effectiveness of internal control systems established
by management, to the extent that risks have been identified and appropriately managed; to ensure
the governance system with stakeholders has been appropriately managed; to ensure the operational,
managerial, and financial information are timely and reliable; to ensure employees actions have
been in accordance with the policies, standards, procedures, and prevailing laws and regulation;
to ensure resources have been obtained and used economically and appropriately safeguarded; to
ensure programs, plans, and objectives are met; to ensure quality assurance has been conducted
and followed with continuous improvements; to ensure legal issues that have significant influence
have been identified and appropriately managed. The unit developed an annual risk based audit
plan consisting of issues and audit focuses. Currently, the audit focuses on key risks identified and
mapped into Antam’s risk profiles by the Risk Management Unit.
Risk Management
Antam has established policies for the oversight and management of material business risks as
described in its company policy manual which will be further refined in 2008. The policy on risk
management is used as a base to develop policies and in decision-making on aspects related
to risk management. The policy describes risk management practices at Antam, which includes
definition on the risk management philosophy, the objective of managing risk, general policy
on managing risk, and the process of managing risk starting from establishing the context, risk
138
identification, risk analysis, risk evaluation, risk management, monitoring and review, and the
communication and consulting activities in risk management. An enterprise risk management
(ERM) policy has also been developed, which is an elaboration from the company policy manual
that provides more detailed explanation on the process of managing risks. The coverage of risk
management processes described in the ERM policy is adopting the risk management framework
in the Australian/New Zealand Standard for Risk Management – ANZ 4360.

In addition, Antam has established a Risk Management (RM) Unit to help create a culture of risk
awareness throughout the organisation by emphasising that risk is the business for everyone. The
unit is responsible to identify, assess and manage significant risks at Antam’s strategic business
units (SBUs), business units (BUs), Head Office unit, as well as subsidiaries, on approved risk
policies and related regulations, to ensure proper coordination between various risk management
functions within the organisation, and to ensure that effective actions are in place. The internal
audit function has the responsibility to monitor compliance of the ERM policy as well as ensuring
that the standard operating procedures are aligned with the ERM policy.
The RM Unit reports directly to the President Director, and functions to coordinate all risk
management process within Antam by communicating strategic risks identified to the BOD and
monitoring the progress of action plans on those risks, developing the company’s risk profile (risk
register) and submitting it to the BOD and Risk Management Committee. The unit helps ensure
that risks are on a tolerable level by continuously developing and monitoring the implementation
of ERM policy and processes, ensuring the risk management practices are attainable and applied
consistently throughout the organisation so that it can be assured that risks are on a tolerable level.
Throughout 2007, the RM unit communicated regularly with the Risk Management Committee and
submitted eleven reports regarding the status of risk management practices at Antam.
Performance Based Human Resources Management

Antam applied a human resources management policy for employees below the BOD level,
that includes a mechanism to set up long and short term work targets, work evaluation,
and conflict resolution, which eventually will to be linked to remuneration. Work targets are
designed to encompass the concept of SMART (Specific, Measurable, Achievable, Realistic
and supported with Time frame for performance review). Antam has developed a performance
evaluation system, “Sistem Manajemen Unjuk Kerja” (SMUK) for this purpose. The results of the
performance evaluation is collectively agreed by the employee and his or her supervisor, and
used as basis for an objective employees’ development program.
The company policy manual states that Antam values its employees, including senior executives,
based on his or her competency and performances and this should be reflected in the compensation
and benefits which are equal to similar companies, and in consideration of the financial ability of
the company. The compensation provided by Antam is rewarded to employees based on position
and responsibility, and on positive contribution of their performance. Rewards come in the form of
salary, benefits, and other benefits required by the prevailing law or otherwise determined. Benefits
in the form of facilities and or other non-cash benefits are also made to increase employees’ 139
wealth. In further ensuring a remuneration policy design that can motivate senior executives and
other employees to pursue long-term growth and success, Antam is refining its remuneration policy
in the company policy manual to be finalised in 2008. Rewards provided to employees should be
designed to enable Antam to motivate human resources in achieving corporate objectives, and
ultimately ensuring Antam’s employees are a competitive advantage.

Adoption of the ASX Corporate Governance

Principles and Recommendations
A description of Antam’s corporate governance practices against the new ASX Corporate Governance Principles and Recommendations is
provided below. Each principle is outlined and any departures from recommendation that is not appropriate to the company’s circumstance
or is not in place during the fiscal year 2007 are provided with the reasons for its departure.
Principle & Recommendation Reference Adoption Remarks

Full Partial
1. Lay Solid Foundation for the Board
1.1. Companies should establish the • Articles of Association W √ Members of the BOC and the BOD were appointed by the GMS,
functions reserved to the board • BOC Charter W and no specific appointment letters for directors that set out
and those delegated to senior • BOD Charter W the key terms and conditions relative to that appointment. The
executives and disclose those notarised GMS minutes act as the basis of the appointment
functions. and substitute the appointment letter. Although no specific
information was stated regarding the key terms and conditions
to that appointment, most of that information is available in the
articles of association, charter, and company policy manual.
1.2. Companies should disclose • Company Policy Manual W I √ No disclosure was made in the fiscal year 2007 whether the
the process for evaluating • Collective Agreement (PKB) I
performance review for senior executives was conducted or
the performance of senior not, as the process is still ongoing, and the requirement to
executives. disclose it was just recommended in the new ASX Corporate
Governance Principles and Recommendations.
1.3. Companies should provide • Annual Report W √ -
information indicated in the Guide • www.antam.com
to Reporting on Principle 1.
2. Structure the Board to Add Value
2.1. A majority of the board should • Articles of Association W √ Majority of board members are not independent. The minimum
be independent. • Notarised GMS Meeting number of members for the BOD and BOC as required by the
• Curriculum Vitae of Board Indonesian Law are at the same level, and therefore does not
Members require a majority of independent directors. During the 1st half
of 2007, Antam has not maintained the majority of independent
board members requirement; however as at end of 2007; almost
half of the board members (BOC and BOD combined) were
independent and all members of the BOC were independent.
2.2. The chair should be an • BOC Charter √ The chair of the board is independent, however no regular
independent director. • Notarised GMS Meeting assessment on the independency of each non-executive
• Curriculum Vitae of Board director and timely disclosure was made to the market on
Members changes of independent status. This is because the mechanism
to regularly assess whether each non-executive directors is
independent has not been established.
2.3. The roles of the chair should • Articles of Association W √ -
not be exercised by the same • Notarised GMS Meeting
individual. • Curriculum Vitae of Board
Members
2.4. The board should establish • NRHRD Charter W √ -
nomination committee. • Company Policy Manual W I
2.5. Companies should disclose • Articles of Association W √ No disclosure during the fiscal year 2007 on whether
the process for evaluating the • BOC Charter W performance evaluation of the BOC and its committees has
performance of the board, its • BOD Charter W taken place and whether it is in accordance with the process
committees and individual • Company Policy Manual W I disclosed. This was because the performance reviews for
directors. the committees (which reflected performance review of the
140 BOC members) has just been conducted in 2007, and it will
be disclosed in the annual report, along with the performance
reviews for the BOD.
No formal induction procedures in place to allow new directors

to participate fully and actively in board-decision making at the
earliest opportunity existed in the fiscal year 2007. Last members
of the board were appointed at year 2004. Nevertheless,
an induction was carried out, although no written policy and
procedures had been developed at that time. Antam has now
developed a policy for induction of new board members that will
be finalise in 2008.


Full Partial
3. Promote Ethical and Responsible Decision Making
3.1. Companies should establish a code •Code of Conduct W √ During fiscal year 2007, Antam established two whistleblower
of conduct and disclose the code •Company Policy Manual W I mechanisms; one administered by the BOC through the Audit
or the summary of the code as to •Personal Ethic Statement Committee, and the other by the BOD through the Corporate
the practices necessary to maintain •Audit Committee Standard Secretary. The latter still required clearer administration
confidence in the company’s ethical Operating Procedure procedures, from documenting each report and ensuring proper
integrity and to take into account analysis and reporting to the BOD and BOC, as well as what
their legal obligations and the follow-up action is required. As a result, both whistleblower
reasonable expectations of their mechanisms will be reviewed.
stakeholders; and the responsibility
and accountability of individuals for The Code of Conduct was published in mid-2007 and the
reporting and investigating reports training and socialisation was conducted during launching. A
of unethical practices. formal program of regular training and monitoring of compliance
with the Code of Conduct had not been conducted. For the
monitoring, it is expected each person will conduct their own
monitoring as set out in the code of conduct.
3.2. Companies should establish •Code of Conduct W √ Antam has established a policy concerning trading in the
a policy concerning trading in •Company Policy Manual W I company’s securities by Directors, Senior Executives and
company securities by directors, employees, which is available in the Conflict of Interest and
senior executives and employees, Confidentiality Section of Antam’s Code of Conduct. A separate
and disclose the summary of that and more detailed policy and procedures regarding this issue
policy. has also been developed and will be finalised and disclosed
in 2008.
information indicated in the Guide to • www.antam.com
Reporting on Principle 3.
4. Safeguard Integrity in Financial Reporting
4.1. The board should establish an audit • Audit Committee Charter W √ -
committee.
4.2. The audit committee should be • Audit Committee Charter W √ -
structured so that it consists only of • Audit Committee Standard
non-executive directors, consists of Operating Procedure
a majority of independent directors, • Curriculum Vitae of Audit
is chaired by an independent chair Committee Members
who is not chair of the board, and
has at least three members.
4.3. The audit committee should have a • Audit Committee Charter W √ -
formal charter.
5. Make Timely and Balanced Disclosure
5.1. Companies should establish • Company Policy Manual W I √ Antam has written policies designed to ensure compliance with
written policies designed to ensure • Corporate Secretary Work ASX listing rules disclosure requirements that formulate the
compliance with ASX listing rule Guidance type of information need to be disclosed, internal notification
disclosure requirements and to and decision-making concerning the disclosure obligation, the
ensure accountability at senior roles and responsibilities of all parties in the disclosure context,
executive level for that compliance process to promote and monitor compliance of disclosure,
and disclose those policies or a measures to avoid emergence of false market, managing
summary of those policies. confidentiality and media, and external communications; and
its disclosure had not been made in the fiscal year 2007. Antam
is now developing a Disclosure of Information Policy to be
finalised in 2008 to ensure timely and balanced disclosure, and 141
the policy will be disclosed when available.
Timely disclosure on financial and operational information had

been made, but the same had not been conducted regarding
governance related information posted in the corporate
governance section at Antam’s website because no regular
updating was made on progress and improvements made in
this area. Antam will be more active in updating this section in
2008.


Full Partial
6. Respects the Rights of Shareholders
6.1. Companies should design • Company Policy Manual W I √ -
a communications policy • BOC Charter W
for promoting effective • BOD Charter W
communication with shareholders • Corporate Secretary Work
and encouraging their Guidance
participation at general meetings
and disclose their policy or a
summary of that policy.
7. Recognise and Manage Risk
7.1. Companies should establish • Company Policy Manual W I √ -
policies for the oversight • BOC Charter W
and management of material • BOD Charter W
business risks and disclose a • Enterprise Risk
summary of those policies. Management Policy
7.2. The board should require • Company Policy Manual W I √ -
management to design and • BOC Charter W
implement the risk management • BOD Charter W
and internal control system to • Enterprise Risk
manage the company’s material Management Policy
business risks and report to it • Internal Audit Charter
on whether those risks are being • Risk Management
managed effectively. The board Committee Charter
should disclose that management
has reported to it as to the
effectiveness o the company’s
material business risks.
7.3. The board should disclose • Statement on the √ -
that whether it has received Responsibility of Financial
assurance from the CEO and Statements
CFO that the declaration • Statement regarding the
provided is founded on a sound Responsibility for the Risk
system of risk management and Management and Internal
internal control and that the Controls
system is operating effectively in
all material respects in relation to
financial reporting risks.
8. Remunerate Fairly and Responsibly
8.1. The board should establish a • NRHRD Committee Charter W √ -
remuneration committee.
8.2. Companies should clearly • Company Policy Manual W I √ -
distinguish the structure of non- • Notarised GMS Meeting
executive directors’ remuneration
from that of executive directors
and senior executives.
142 information indicated in the Guide • www.antam.com
W
Available in Antam website, at www.antam.com
I
Available in Antam intranet portal

Adoption of the Indonesian Code of

Good Corporate Governance
A description of Antam’s corporate governance practices against the Indonesian Code of GCG is provided below. This is the first year
we provide this assessment on the adoption of this code.
Principle & Recommendation Adoption Remarks

Full Partial
1. Good Corporate Governance Principles √ -
GCG Principles need to be implemented on each business facet and
within the entire company, and includes transparency, accountability,
responsibility, independency, and fairness. These principles are
necessary to attain a company’s sustainability by also considering the
interests of stakeholders.
2. Business Ethics and Code of Conduct √ During the fiscal year 2007, the code of conduct was not
To attain success in the long term, GCG implementation needs to applicable for shareholders, no requirements that prohibit
be based on high integrity. Sets of values need to be developed that parties with conflict of interest to participate in discussions
describes the morals of the company in conducting its business, which and decision-making process, no requirements on annual
are then further elaborated into a code of conduct. certification of non-conflict of interest, and need of an
improvement on the accountability of the whistleblower
mechanism.
3. Organs of the Organisation √ The framework and processes that can ensure the
The GMS, the BOC, and the BOD have an important role in implementing effectiveness of design and operation of internal controls
GCG effectively, by carrying their respective functions based on the had not specifically addressed the internal control over
principle that each organ is independent in carrying out its duty, function financial reporting risks.
and responsibility in the sole interest of the company.
4. The Rights and Role of Shareholders √ -
Shareholders as owners of share capital have certain rights and
responsibilities within the company in accordance with the laws and
regulations and the articles of association of the company.
5. The Rights and Role of Other Stakeholders √ -
Stakeholders, including employees, resource providers, and communities
particularly in which the company operates, have an interest in the
company and are directly affected by the strategic and operational
decisions of the company. Therefore, the relationship between the
company and its stakeholders needs be fair and equal, in accordance
with the prevailing laws and regulations, and should be based on mutual
arrangements applicable to each respective party.
6. Statement of GCG Implementation √ -
A statement regarding the implementation of GCG and its report shall be
made a part of the company’s annual report. In the event that the GCG
Code has not been fully implemented, a company shall disclose the
non-conformance aspects and the reasons for such. The statement shall
comprise the structure and work mechanism of the BOC and the BOD,
and other pertinent information regarding implementation of GCG.
7. Internalisation of GCG Practices √ -
GCG shall be implemented in a systematic and continuous manner.
Accordingly, it is necessary to have practical guidelines to be used as a
reference in implementing GCG.
143

144

Sustainability Report
Stakeholders’ Involvement
146
Environmental Performance
146
Social Performance
147
Antam Funds a Local Craftsman

148
Antam to Purchase Green Energy

149
145

This report is an abridged version of Antam’s Corporate Sustainability Report which contains our
efforts in sustainable development in the fields of economics, environment and social.
We have prepared this report to portray our learning process from challenges and issues that
we faced in 2007. The complete Corporate Sustainability Report is written based on the Global
Reporting Initiative – GRI G3 and contains more than 80 pages.
For Antam, the word sustainable means that Antam has to fullfill its vision as a mining company
with an international standard and competitive advantage in the global market as well as being
able to benefit the community and environment where we operate.
To put further emphasis on our concerns to the environment and surrounding community, we have
formed a Commissioner level committee to handle related matters to the environment, community
development and post mining. In 2007, we had two fatal accidents at Buli and Pongkor. Incidents
like these are why we are committed to improve the work and health safety management.
Corporate Governance and Management Systems

As a dual listed company in Indonesia and Australia, compliance to the stock exchange regulations
is a must. We are committed to adhere to the corporate governance implementation in all aspects
of company’s operations and activities.
Most of our business units have implemented international standard management systems such
as in quality management (ISO 9000) and environmental management (ISO 14001).
Stakeholders’ Involvement
We fully understand the importance of the communication between us and our stakeholders. This
is important to support our business activities from the strategic planning, implementation until
the evaluation of corporate projects and initiatives. The ongoing mechanism to ensure an effective
communication with our stakeholders include community development and community relations
activities, shareholders’ meetings, Bipartit Forum with the union, Tripartit Forum, Development
Planning Coordination meetings, annual report and press releases, consultative meetings with the
government environmental agency, community welfare acceleration programs, partnership and
community development programs, and many others.
Environmental Performance
Antam’s commitment to proper enviromental management was reflected in the increased
expenditure of environmental rehabilitation. In 2007, Antam’s environmental expenditure increased
146
6% to Rp43 billion compared to 2006.

Clockwise, from left: In 2007, from a target of 231.8 hectares of land rehabilitation, Antam has rehabilitated 228.05
Antam helps by providing housing to hectares or 98% of the target.
the surrounding community.
Antam provided water rafts and

personnel to rescue trapped community
In the vicinity of Pomalaa and Pongkor, Antam started a water recirculation system, thereby
members during Jakarta’s heavy floods. reducing the amount of water taken from the earth. In 2007 Antam also started the Green Antam
School children at Antam’s Pomalaa program with the planting of 10,000 trees in the protection forest area of Angke Kapuk, Jakarta. The
nickel business unit.
program is conducted in cooperation with the Agriculture and Forestry Directorate of the Jakarta
Provincial Government. Antam also conducted the “Antam Plants” program with the planting of
4,000 trees throughout Antam’s operation area. The effort is part of Antam’s commitment to reduce
global warming.
Social Performance
Antam is concerned with the welfare of the its employees as well as the surrounding community.
Antam continued its efforts to improve the welfare of the surrounding community through the
community development and partnership program and surrounding community programs. These
programs are focused on areas such as education, health, public infrastructure, places of worship, 147
natural disaster, nature conservation, and others. In 2007, Antam spent Rp37 billion on community

development, an increase of 12%. The largest community development expenditure was spent at
the nickel mining unit accounting for 76% of total expenditure. In 2007, Antam spent Rp8 billion
for the surrounding communities program while total expenditure for the partnership program
amounted to Rp10 billion. Antam’s community development programs funded directly by the
company included initiatives in education, health, infrastructure, and outsourcing. As well Antam
participated in environmental and community development by providing 1% of net income to a
government-run fund. Antam participated in a partnership program with local entrepreneurs by
providing 1-3% of net income to a government-run fund.
Antam Funds
a Local Craftsman
Name : Udin Saputra, BEd.
Age : 30 years old
Address : Nunggul village, Nanggung district, West Java
Occupation : Ivory Stone Craftsman
Although Udin has only officially partnered with Antam since 2006, Antam has given special
attention to Udin since 2002 for his business and talent in the ivory stone craftsmanship.
Since he was small Udin, who grew up in Pongkor area, has had a talent in the art of ivory
stone carving, a stone which carries unique characteristics. He refined his artistic talent at art
school in Yogyakarta. He is also a talented painter.
Udin first joined an exhibition with Antam in 2005, and he won second place for Best
148 Craftsmanship. In the INACRAFT exhibition in 2006, President Susilo Bambang Yudhoyono
bought his work directly. Udin received the revolving partnership fund for Rp25 million
from Antam.
“Partnering with Antam means expanding my market. As well, it can also develop the talent
and art skills of local youngsters. I receive not only financial assistance but also moral and
knowledge support.”

Antam to Purchase Green Energy

In order to maintain and create sustainable business growth and operations, which is one of our strategies to grow and meet our
objective to create shareholder value, we strive to conduct our operations as environmentally and socially sustainable as possible. The
signing of Power Purchase Agreement (PPA) with PT Tamboli Energi (Tamboli) is an example of such efforts.
In September 2007, we entered into a PPA with Tamboli covering a supply of 15MW peak load capacity of electricity to our Pomalaa’s
ferronickel facilities from Tamboli’s 4x5MW hydro power plant. The power plant, which is located at Kolaka area about 63 km from
Pomalaa, will be in form of a Run of River (ROR) hydropower plant.
This type of hydropower plant is built on a river with a consistent and steady flow of water. Electricity is generated by diverting a
portion of the water from the river to spin the power station’s turbines utilizing the natural flow and elevation drop of the river. The
water will leave the power generating station and return to the river without altering the river’s existing flow or water level. As no or
very minimal flooding at the upper part of the river is required, natural habitats are mostly preserved and there is no need to relocate
people living around the river.
In contrast, man-made reservoirs of hydropower plants using man-made dams usually involve complex displacements of large
number of populations living nearby. It may also produce substantial amounts of methane and carbon dioxide, the main components
of greenhouse gas, as the results of decaying plants in the anaerobic environments in the flooded areas. Moreover, they also change
the downstream river environments drastically. Dams slow the river and this change may cause damages to the ecological patterns.
Another problem caused by dams is changes in the rivers temperatures. Reservoirs are warmer at the top and colder at the bottom.
As water from the reservoirs, usually the colder water from the lower parts, is released to the downstream rivers, organisms depending
on regular cycle of temperatures may perish and may endanger the aquatic populations of the river.
ROR hydropower is a source of renewable energy that does not emit greenhouse gases and is much friendlier to the environment
compared to hydroelectric generators with man-made dams and reservoirs, let alone compared to thermal fuel power stations. We
will therefore support any effort by Tamboli to obtain Certified Emission Reductions (CER) through Clean Development Mechanism
(CDM) for its ROR hydropower plant.
The Tamboli PPA is not only environmentally sustainable, it is socially beneficial as well. By working together with Tamboli, a domestic
company based in the island of Sulawesi, we are supporting the development of the businesses and economy in the regional area
where we operate.
Last but not least, the signing of PPA with Tamboli makes good business sense. Although it only covers a small portion of our overall
energy needs, it is an important step in our efforts to decrease our dependence on the more expensive diesel fuel as our main source
of energy. Upon the commencement of the hydropower purchase at US$ 0.0565 / KWh in 2009, we expect to lower our ferronickel
power cost by up to 8- 10%, which will result in a reduction of our ferronickel cash cost by up to 3 - 4%.
149

150

Auditing Antam
Board of Directors’ Statement Regarding the Responsibility for the Consolidated Financial Statements
152
Independent Auditors’ Report to the Shareholders
153
Consolidated Balance Sheets
154-155
Consolidated Statements of Income
156
Consolidated Statements of Changes in Equity
157
Consolidated Statements of Cash Flows
158
Notes to the Consolidated Financial Statements
159-196
1. General
159
2. Summary of Significant Accounting Policies
163
3. Cash and Cash Equivalents
168
4. Restricted Cash
168
5. Trade Receivables – Third Parties
170
6. Inventories
171
7. Investment in Shares of Stock
171
8. Property, Plant and Equipment
172
9. Deferred Exploration and Development Expenditures
173
10. Deferred Charges
174
11. Trade Payables
174
12. Accrued Expenses
175
13. Taxation
175
14. Long-term Liabilities
178
15. Provision for Environmental and Reclamation Costs
180
16. Share Capital
180
17. Additional Paid-in Capital
181
18. Distribution of Income
181
19. Net Sales
182
20. Cost of Sales
183
21. Operating Expenses
183
22. Income from Penalty and Insurance Claim
184
23. Employee Costs
184
24. Pension and Other Post-retirement Obligations
184
25. Related Party Information
188
26. Basic Earnings per Share
189
27. Monetary Assets and Liabilities Denominated in Foreign Currencies
189
28. Segment Information
190
29. Significant Agreements, Commitments and Contingencies
191
30. Summary of Significant Differences between Indonesian Generally Accepted Accounting Principles (“GAAP”)
and Australian GAAP
194
31. Revised Statements of Financial Accounting Standards
195
32. Subsequent Events
195
33. Economic Conditions
196
34. Reclassification of the Consolidated Financial Statements
196
35. Completion of the Consolidated Financial Statements
196
152
2007 ANTAM Annual Report www.antam.com

153
www.antam.com 2007 ANTAM Annual Report


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Auditing Antam
Contact Us
2007 ANTAM Annual Report

157

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196


Key Personnel and

Business Units
Commissioners, Directors and Senior Staff Rinanti Agnes Arsadjaja Senior Manager Operations
Controlling
Board of Commissioners Surianto Senior Manager Tokyo
Wisnu Askari Marantika President Commissioner Representative
Suryo Suryantoro Commissioner
Suharno Senior Manager Human
Supriatna Suhala Commissioner
Resources Management
Irwandy Arif Independent Commissioner
Syafri Isman Senior Manager Internal Audit
Board of Directors Service Delivery
D. Aditya Sumanagara President Director Tuhiyat Senior Manager Accounting
Alwin Syah Loebis Operations Director and Budgeting
Kurniadi Atmosasmito Finance Director Tantiyo Budi Senior Manager Treasury and
Darma Ambiar Development Director Financial Engineering
Syahrir Ika General Affairs and Human
Resources Director Business Unit Executives
Denny Maulasa Senior Vice President of Nickel
Corporate Internal Audit Mining Business Unit
Tuti Kustiningsih Senior Vice President Winardi Senior Vice President of Gold
Internal Audit Mining Business Unit
Robinson Tampubolon Vice President of Logam Mulia
Corporate Secretary Precious Metals Refinery Unit
Bimo Budi Satriyo Senior Vice President Lukman Alie Vice President of Bauxite Mining
Corporate Secretary Business Unit
Widyo Soesilo Vice President of Unit Geomin
Head Office Senior Managers
Achmad Djamalilleil Senior Manager Information
Technology Group Business Units
Agus Yulianto Senior Manager Environment NICKEL MINING BUSINESS UNIT
and Post Mining Pomalaa Nickel Mine and Ferronickel Plant
Ari Karnalin Senior Manager Learning Jl. Jend. Ahmad Yani No. 5
and Assessment Pomalaa, Kolaka 93652,
Sulawesi Tenggara
Bachtiar Maggalatung Senior Manager Program
Ph. (62-405) 310 171
Management Office
Fax. (62-405) 310 833
Eko Marthias Senior Manager Risk
Management North Maluku Operations Office
Hari Widjajanto Senior Manager Corporate P. Buli, Maba, Halmahera Tengah
Strategic Development Group Ph. - Fax. (62-21) 781 2736
Hikmat Gunantara Senior Manager Legal and
Compliance Makassar Office
Ibrahim S. Corporate Social Jl. Dr. Sam Ratulangi No. 60
Responsibility Group Makassar 90122
Sulawesi Selatan
M. Basir Senior Manager Supply Chain
Ph. (62-411) 872 234, 871 648, 872 012
Management Group
Fax. (62-411) 872 237
Pim Premono Senior Manager Marketing and
Customer Support Group
197

Institutions and
Supporting Professionals
Ternate Office AUDITOR
Jl. Batuangus No. 11 Purwantono, Sarwoko & Sandjaja
Ternate 97727, Maluku Utara Jakarta Stock Exchange Building
Ph. (62-921) 22221, 21686 Tower 2, 7th Floor
Fax. (62-921) 22819 Jl. Jend. Sudirman Kav. 52-53
Jakarta 12190, Indonesia
GOLD MINING BUSINESS UNIT Ph. : (62 21) 5289 5000
PO Box 1, Pos Nanggung Fax.: (62 21) 5289 4100
Bogor 16650, Jawa Barat
Ph. (62-251) 369 999
Fax. (62-251) 681 543 SECURITIES ADMINISTRATION AGENCIES
e-mail : gold.pongkor@antam.com PT Datindo Entrycom Computershare Registry
Puri Datindo Services Pty
LOGAM MULIA PRECIOUS METALS Belakang Wisma Diners Club Level 3, 60 Carrington St.
REFINERY Jl. Jend. Sudirman Kav 34 Sydney, NSW 1115
BUSINESS UNIT Jakarta, 10220 Australia
Jl. Pemuda - Jl. Raya Bekasi Km. 18 Indonesia Tel. : (61-2) 8234 5000
Pulogadung, Jakarta 13010 Tel. : (62-21) 570 9009 Fax.: (61-2) 8234 5050,
Ph. (62-21) 475 7108 Fax.: (62-21) 570 9026 (61-2) 8234 5180
Direct marketing (62-21) 478 65492 e-mail: deone@indosat.net.id www.computershare.com
Fax. (62-21) 475 0665, 296 3043 www.datindo.com
e-mail: logammulia@antam.com
lm@logammulia.com BANKERS
Bank Mandiri
BAUXITE MINING BUSINESS UNIT Bank BNI
Jl. Bintan Kijang Bank Central Asia
Tanjung Pinang 29151, Kepulauan Riau ABN AMRO Bank NV
Ph. (62-771) 61177, 61520 Citibank
Fax. (62-771) 61921
LOCAL AGENT AND REGISTERED OFFICE IN
GEOMIN UNIT AUSTRALIA
Jl. Pemuda No. 1 Roger Penman
Pulogadung, Jakarta 13210 WHK Australia
Ph. (62-21) 475.5380 15th Floor, 309 Kent Street
Fax (62-21) 475 9860 Sydney, NSW 2000
e-mail : geomin@antam.com Australia
Tel. : (61 2) 9262 2155
ANTAM TOKYO REPRESENTATIVE OFFICE Fax.: (61 2) 9262 2190
New Aoyama Building, East 1507 e-mail: mail@whk.com.au
1-1, Minami Aoyama, 1-Chome Website. www. whk.com.au
Minato-ku, Tokyo 107-0062, Japan
Ph. (03-3423) 8031 To receive a copy of Antam’s annual report and for other information,
Fax. (03-3423) 8033 please visit our website or contact:
Corporate Secretary
Gedung Aneka Tambang
Jl. Letjen. T. B. Simatupang No. 1
Lingkar Selatan, Tanjung Barat
Jakarta, 12530
Indonesia
Tel. : (62-21) 780 5119
Fax.: (62-21) 781 2822
e-mail: corsec@antam.com
www.antam.com
198 •This annual report is also available in Bahasa Indonesia.

Please contact us if you wish to receive a copy.

Glossary
Alumina, or Aluminium Oxide (Al2O3), is the most important component of Calcination (calcining) is the thermal decomposition of a material. Examples
bauxite. Alumina has a high melting point, high compression strength, strong include decomposition of hydrates such as aluminium hydroxide to aluminium
resistance to abrasion, and strong resistance to wide range of chemicals oxide (alumina) and water vapor. It derives its name from its most common
even at high temperature. About 90% of alumina is produced in the form application, the decomposition of calcium carbonate (limestone) to calcium
of Smelter Grade Alumina for the use of aluminium metal production. The oxide (lime). The product of calcination is referred in general as “calcine,”
balances, Chemical Grade Alumina, are used in various applications such as regardless of the actual minerals being treated. Calcination normally takes place
in refractories, ceramics, polishing, electronic substrates, grinding media and at temperatures below the melting point of the product materials. Calcination
abrasion resistant materials. processes are carried out in a variety of furnaces such as shaft furnaces and
rotary kilns.
Aluminium (Al) is a silvery white, light weight, ductile and corrosion resistant
metal. It is the most abundant metal in the Earth’s crust, and the third most CGA. Chemical Grade Alumina represents about 10% of the alumina market and
abundant element overall, after oxygen and silicon. Chemically too reactive to are mainly used in refractories, ceramics, polishing and abrasive applications.
be found in nature as free metal, it is found in combined forms in over 270 Please refer also to Alumina.
different minerals. Aluminium is produced from smelter grade alumina, which
is mainly processed from bauxite ore. Aluminium and its alloys are vital to the Coke is a solid but porous material produced and processed from low-
aerospace industry and other areas of transportation and building industries. ash, low-sulfur bituminous coal. The coal is baked in an airless oven at
a very high temperature to eliminate the volatile and smoke producing
Anthracite. A hard and compact mineral coal that possesses the highest components. Coke burns with little or no smoke and is a main fuel in pig
carbon content (92% to 98%). Containing the fewest impurities of all coals, iron-making blast furnaces.
Anthracite ignites with difficulty and burns with a short, clean, blue smokeless
flame and delivers high energy per its weight. The principal use of anthracite COW stands for a Contract of Work between the Government of the Republic of
today is for domestic fuel for stoves. It is prohibitively expensive for power plant Indonesia and a mining company established under a foreign investment scheme
use. Anthracite is used as one of the chemical reducing agents to produce to provide long term regulatory business certainty to the company. The Contract
ferronickel from nickel ore in Antam’s ferronickel smelters. of Work allows the company to conduct exploration, mining and production
activities for an agreed upon time period and governs its rights and obligations
ASX. Abbreviation of Australian Securities Exchange (formally knowns as the relating to taxes, exchange controls, royalties, repatriation and other matters.
Australian Stock Exchange). Antam is listed on the ASX.
CSR stands for Corporate Social Responsibility, a concept whereby corporations
Austenitic Stainless steel. Austenitic or 300 series stainless steels comprise ought to take responsibility for the impact of their activities on their stakeholders
about 70% of total stainless steel production. They contain a maximum of such as customers, suppliers, employees, communities, shareholders as well
0.15% carbon, a minimum of 16% chromium and sufficient nickel to stabilize as the environment. Under the original concept, CSR activities are voluntary
the austenite structure of iron. This austenitic crystal structure makes such in nature. In Indonesia, however, CSR becomes obligatory and is recently
steels non-magnetic and less brittle. stipulated under the Indonesian Company Law.
Base Metals. In the mining industry, base metals refer to industrial non-ferrous Direct-reduced iron (DRI) is produced from direct reduction of iron ore in solid
metals excluding precious metals. These include copper, aluminium, lead, state at 950 – 1050 °C by a reducing gas produced from natural gas or coal.
nickel, tin and zinc. Direct reduction is an alternative route of iron making for the the steel industry.
The specific investment and operating costs of direct reduction plants is low
Bauxite is the main source of ore for aluminium production. Bauxite contains 30- compared to integrated steel plants.
54% alumina (Al2O3) and a mixture of silica, various iron oxides, and titanium
dioxide. It was named after the village where it was first discovered in 1821, Les Electric Arc Furnace (EAF) is a furnace that heats charged material by means of
Baux-de-Provence in southern France. an electric arc. In general, the physical and chemical process within the furnace
is similar to the process mentioned in “blast furnace” entry previously. However,
Bayer Process is the principal process of extracting alumina from bauxite. electric arc furnace is more efficient and is less damaging to the environment as
Bauxite is washed with a hot solution of sodium hydroxide (NaOH) at 175°C, to compared to blast furnaces. EAF needs a stable source of electricity, which is
extract, dissolve and convert the alumina components to aluminium hydroxide usually supplied by a dedicated power plant.
(Al(OH)3). The other components do not dissolve and are filtered as solid
impurities called red mud, which presents a disposal problem. The hydroxide Electrolytic reduction involves passing a large current of electricity through a molten
solution is then cooled and the dissolved aluminium hydroxide precipitates out metal oxide or an aqueous solution of the metal’s salt to obtain the metal.
as a white, fluffy solid material. Through a calcination process, the aluminium
hydroxide is heated at 1050°C to produce alumina and water vapor. EPC stands for Engineering, Procurement and Construction contract. Under
an EPC, the EPC contractor agrees to deliver a commissioned plant to the
BFS stands for Bankable Feasibility Study. BFS will determine whether a owner based on a mutually agreed upon scope and specifications, quality,
project will be feasible enough to proceed and to obtain the needed financing. project duration and investment cost. EPC is attractive to a project owner due
It usually consists of engineering, marketing, environmental, societal, and to among things: 1) EPC gives the owner one point contact. It is easy to monitor
financial components. and coordinate. 2) Investment cost, duration, specification and quality level is
fixed and is known at the start of the project.
Blast Furnace. Metallurgical furnace used for smelting ores to produce metals,
generally iron. In a blast furnace, fuel and ore are continuously supplied through Extractive metallurgy is the practice of extracting metal from ore, purifying and
the top of the furnace, while air (sometimes with oxygen enrichment) is blown recycling it. Extractive metallurgy phases involve mineral processing activities
into the bottom of the chamber, so that the chemical reactions take place combined with hydrometallurgy and/or pyrometallurgy processes.
throughout the furnace as the material moves downward. The end products are
molten metal and slag, which are tapped from the bottom, and gases that exit FeNi stands for Ferronickel. One of the main products of Antam, it is produced
from the top of the furnace. The term has usually been limited to those used by processing high grade nickel ore through a pyrometallurgical technology.
for smelting iron ore to produce pig iron, an intermediate material used in the Antam’s ferronickel consist of about 20% nickel and about 80% iron. Sold in
production of commercial iron and steel. the form of shots and pellets, either with high or low carbon content, Ferronickel
is used as the feed materials for stainless steel production.
Calcine. The materials produced by calcination process. Please refer to
calcination below.
199

Gold (Au). Bright yellow, dense, soft, shiny, the most malleable and ductile Laterite. The type of nickel deposits found in tropical area. It is one of the two
of known metals and highly resistant to oxidative corrosion, gold is a highly types of nickel ore deposits, the other type being sulfide nickel sulfide ore deposit.
sought-after precious metal which, for many centuries, has been used as Lateritic nickel ores are formed by intensive tropical weathering of the earth crust.
money, a store of value and in jewelry. The metal occurs as nuggets or grains Typical nickel laterite ore deposits are very large tonnage low-grade deposits
in rocks, underground “veins” and in alluvial deposits. Modern industrial uses located close to the surface. They comprise about 73% of the continental
include dentistry and electronics. world nickel resources and in the future will be the dominant source for nickel
production as the higher grade sulfide deposits are being depleted. Lateritic
GCG stands for Good Corporate Governance. The managements of nickel ore consist of the lower grade limonite and the higher grade saprolite.
corporations that adhere to the principles of good corporate governace adhere
to the principles of transparency, accountability, responsibility, independency LBMA is the abbreviation of London Bullion Market Association. Although the
and fairness in their operations and business dealings. physical market for gold and silver is distributed globally, most wholesale OTC
trades are cleared and traded at the London Bullion Market by members of
Heap or Atmospheric Leach is a branch within hydrometallurgical technology LBMA, most of which are major international banks, bullion dealers and refiners,
that is used primarily to treat oxide-rich nickel laterites with low enough clay and loosely overseen by the Bank of England. Five members of the LBMA meet
contents, which allow acid infiltration. Ore size is reduced, mixed with clay-poor twice daily to “fix” the gold price in a process known as the London Gold Fixing.
rock if necessary, and then stacked on impermeable plastic membranes. Acid The price is used as the benchmark for gold price worldwide. Antam’s refined
is infiltrated over the heap, generally for 3 to 4 months, to liberate 60% to 70% gold products are certified by LBMA.
of the nickel-cobalt content into acid solution. The solution is neutralized with
limestone to produce a nickel-cobalt hydroxide intermediate product, which is Limonite nickel ore is low grade nickel laterite ore containing between 0.8% -
then smelted for obtain refined metals. The plant and mine infrastructure are 1.5% nickel, 25%-35% iron and a trace of cobalt. Limonite rests atop saprolite
much cheaper - up to 25% of the cost of a HPAL plant - and less risky from a and is cheaper and easier to mine.
technological point of view. However, they are limited in the types of ore which
can be treated. LME. London Metal Exchange is the world’s premier non-ferrous metals market.
It mainly offers futures and option contracts for aluminium, copper, nickel, tin,
High Pressure Acid Leach (HPAL) processing, a branch within hydrometallurgical zinc and lead plus two regional aluminium alloy contracts. Although located in
technology, is required for nickel laterites where nickel is bound within clay London, LME is a global market with international membership and with more
or secondary silicate substrates in the ores. The nickel and cobalt metal is than 95% of its business coming form overseas.
liberated from such minerals only at low pH and high temperatures, generally in
excess of 250 degrees Celsius. HPAL plants could be used for most types of Metal Tapping is the operation of pouring off molten metals from the furnace.
ore minerals, grades and nature of mineralization. However, it is highly capital During smelting process, the molten metals are separated from slags or
intensive. While not as energy intensive as pyrometallurgy processing, it still impurities. The slags, which float on top of the heavier molten metal, are tapped
require energy to heat the ore material. The heated acid has to be specially from the slag tap hole, which is located at the upper part of the furnace. Molten
treated as they tear and wear down the plants and equipments. metals are tapped from metal tap hole, which is located at the lower part of
the furnace.
Hydrometallurgy is a branch of extractive metallurgy which uses aqueous
chemistry for the recovery of metals from ores, concentrates, and recycled or Mineral Processing, or mineral dressing, is a phase within extractive metallurgy
residual materials. Some of the hydrometallurgical processes include leaching, which usually is consisted of several activities such as particle size reduction
precipitation of insoluble compounds, pressure reduction. through crushing and grinding, separation of particle sizes by screening,
concentration by taking advantage of physical and surface chemical properties,
IDX. Abbreviation of Indonesian Stock Exchange. In bahasa Indonesia, the and separation of solid component from liquid components of the particles
abbreviation is BEI, which stands for Bursa Efek Indonesia. Antam is listed through drying/dewatering. A number of auxiliary materials handling operations
on the IDX. are also considered as mineral processing activities such as stocking, conveying,
sampling, weighing, slurry and pneumatic transporting. Mineral processing is
IRC stands for Indonesian Resources Company, a holding company combined with hydrometallurgical and/or pyro-metallurgical processes as part
being envisioned by the government that will consist of PT Antam Tbk, of an extractive metallurgical operation.
PT Tambang BatuBara Bukit Asam (Persero) Tbk and PT Timah Tbk. There
are also suggestions to include the government shareholding in PT Freeport Mineral resource classification is the systematic organization of information
Indonesia and PT Inalum. The merger is expected to provide various on ores and other mineral deposits which may contain economic value. The
benefits such as increased earning quality from size and diversification, cost specific economic categories of mineralization are: 1) prospects which are of
efficiency and greater access to capital. The IRC is still continuously being geological interest but may not be of economic interest 2) mineral resources,
studied by the Government. include those which are potentially economically and technically feasible, and
those which are not 3) ore reserves, must be economically and technically
ISO, International Organization for Standardization (Organisation internationale feasible to extract. The common terminology for mining, “ore deposit”, must
de normalisation), is an international standard-setting body composed of have an ‘ore reserve’, and may or may not have additional ‘resources’.
representatives from various national standard organizations. Founded in
1947 and headquartered in Geneva, Switzerland, the organization promulgates NCPI stands for Nickel Contained in Pig Iron, a product of recent developments
world-wide industrial and commercial standards. in low grade nickel ores (limonite) processing. Nickel limonite, due to its 25%
to 35% iron content, is essentially similar to low-grade iron. Certain steel
JORC Code.The Australasian Joint Ore Reserves Committee Code is one of smelters in China have developed a process for blending nickel limonite
the general standards accepted globally to govern the classification of mineral ore with conventional iron ore to produce NCPI (containing 2-4% nickel) as
resources. Please refer also to mineral resources classification. stainless steel feed products. This process short-circuits the capital intensive
hydrometallurgical route for producing nickel from low grade nickel ore, which
KP stands for the Indonesian word Kuasa Pertambangan. Literally means is then used in stainless steel anyway. Operational cost of NCPI production is
“Mining Authority”, KP is basically the mining license issued by the government high, however. NCPI production may not be economical when nickel prices fall
to corporations established under domestic investment scheme to conduct in the future.
mining activities. Since 2001, in line with the country’s decentralization drive,
KPs are issued by the regional governments. The central government only
issues KP for mining areas that overlap two or more provinces.
200

Nickel (Ni) is a silvery white metal that is hard yet malleable, versatile, inert to Silver (Ag). A soft, bright white, lustrous metal that has long been valued as
oxidation and able to retain its properties under extreme temperatures. About precious metal used to make ornaments, jewellery, high-value tableware and
65%-70% of nickel is consumed for the production of stainless steel, while utensils and currency coins. It has the highest electrical conductivity of any
the rest is used for various industrial purposes such as batteries, electronics, element and the highest thermal conductivity of any metal. It occurs as a pure
aerospace applications and land based gas turbines. free metal and alloyed with gold, as well as in various minerals. Most silver is
produced as a by-product of gold, coppers, lead and zinc mining.
Open-pit mining, also known as opencast mining or open-cut mining, refers to
a method of extracting minerals from the earth when the valuable deposits of Slag is the by-product of smelting ore to produce metals. They may contain
minerals are found near the surface ie. where the overburden (surface material a mixture of metal oxides, metal sulfides and metal atoms in elemental form.
covering the valuable deposit) is thin or the material of interest is structurally While slags are sometimes considered as waste in metal smelting, they also
unsuitable for tunneling. serve other purposes, such as in assisting smelt temperature control and
minimizing re-oxidation of the final liquid metal product.
Ore is a volume of rock containing minerals that is rendered to be valuable
to be mined. Ore is an economic entity, not a physical entity. Fluctuations in Smelting is a process within pyrometallurgy technology of extracting a metal
commodity prices, the costs of extraction, the grade of the mineral within the from its ore. It usually takes place in a furnace at a temperature above the
ore, etc., will determine what rock is considered valuable and hence ore, and melting point of the metal and uses a chemical reducing agent, commonly a fuel
what rock is not valuable and is considered waste. that is a source of carbon such as coke or anthracite, to liberate the oxygen as
carbon dioxide or carbon monoxide and to produce the refined metal. Without
Oxidation and Reduction. Most metals occur in nature in their oxidized form and the proper reducing agent, heated metal ore will only produce molten ore. As
must be reduced to their metallic forms. Metal oxides are smelted by heating most ores are impure, it is often necessary to use “flux”, such as limestones or
with coke or anthracite (forms of carbon), a reducing agent that liberates the borax, to remove the impurities as slag.
oxygen as carbon dioxide leaving a refined mineral.The chemical term for the
conversion of carbon to carbon dioxide is oxidation. Meanwhile the conversion Refining is the removal of further impurities from metals that have been
of metal oxides to refined metal is called reduction. smelted. This covers a wide range of processes, involving different kinds of
pyrometallurgical “fire refining” using furnaces as well as through certain
Pig iron is produced by smelting iron ore with coke and resin. Containing very electrolytic processes.
high carbon content, pig iron is very brittle and is considered as an intermediate
product. The traditional shapes of these ingots appear like a litter of piglets Sponge iron is the product created when iron ore is reduced to metallic iron,
suckling on a sow, hence the name pig iron. Pig iron is intended for re-melting usually with some kind of carbon at temperatures below the melting point of
and for further processing to produce commercial iron and steel. iron. This results in a spongy mass, sometimes called a bloom, consisting of a
mix of incandescent wrought iron and slag. Sponge iron is not useful in it-self
Precious metal is a rare metallic chemical element of high economic value. but must be processed to create wrought iron (commercially pure iron).
Precious metals are less reactive chemically than most elements, have high
luster, more ductile and have higher melting points than other metals. Precious SPLC. Smart Predictive Line Controller stabilizes the arc of an electric furnace
metals were important as currency, but are now regarded mainly as investment by dynamically controlling a series reactor installed between the Utility and the
and industrial commodities. The best-known precious metals are gold and Electric Furnace. The controlled reactor acts as a dynamic spring to stabilize
silver. Other precious metals include the platinum group metals: ruthenium, the arc. SPLC could be the solution to maintain the high temperature of Antam’s
rhodium, palladium, osmium, iridium and platinum. Rhenium is a precious metal furnaces should we decide to convert the source of our power plants’ fuel from
that is not part of the platinum group or one of the traditional precious metals. the more expensive but more stable and efficient diesel to the less expensive
but less efficient and less stable coal.
Pyrometallurgy. A branch of extractive metallurgy that consists of treatments
of ores and concentrates at high temperature by transforming the physical Stainless steel is defined as an iron-carbon alloy with a minimum of 11.5%
and chemical nature of the materials to recover the valuable metals. chromium content. Stainless steel’s resistance to corrosion and stain, low
Pyrometallurgical process generally consists of: Drying, Calcining, Roasting, maintenance, relatively inexpensive, and familiar luster make it an ideal base
Smelting and Refining. Pyrometallurgical is energy intensive in order to sustain material for a host of commercial applications. There are over 150 grades of
the temperature at which the process takes place. The energy is usually stainless steel. However, the most popular - 70% of the stainless production - is
provided in the form of fossil fuel combustion or from electric energy as well as in of the form 300 series austenitic stainless steel which contains high content
the sustained heat from the molten materials themselves. of nickel. Stainles steel production consumes 65%-70% of nickel production.
Reserves and Resources. Please refer to mineral resource classification. Tailings, also known as slimes, tailings pile, tails, leach residue, or slickens, are
the materials left over after the process of separating the valuable components
Risk Capital refers to the investments undertaken by mining companies in from the worthless components of an ore. Tailings represent external costs
exploration programs. Exploration is risky since there is no guarantee that the of mining. As mining techniques and the price of minerals improve, it is not
investments spent on exploration will result in findings of ore deposits. unusual for tailings to be reprocessed using new methods, or more thoroughly
with old methods, to recover additional minerals.
Saprolite. Saprolite nickel ore is formed beneath the limonite zone. It contains
generally 1.5-2.5% nickel and is considered high-grade nickel laterite ore. Underground mining. A method of extracting minerals that require tunneling into
Using a pyrometallurgical process, saprolite is used as the raw materials for the the earth because the minerals occur deep below the surface (thick overburden)
production of ferronickel. or they occur as veins in hard rock.
SGA. Smelter Grade Alumina or metallurgical grade alumina is the alumina

utilised in the manufacture of aluminium metal. SGA comprises 90% of the
alumina market.
The definitions and explanations above are mostly in forms of summaries of the same subjects from en.wikipedia.org. Wikipedia is a user operated open
editing system. While the subjects above can be used as starting point for discussion purposes, we do not claim that the definitions and explanations
above represent the most accurate representations of the terms.
Besides en.wikipedia.org, we also source and summarize the definitions and explanations of the terms above from some other websites such as
www.lme.co.uk; www.hatch.ca; and www.lbma.org.uk.
201

Corporate Identity
Name of Corporation
Perusahaan Perseroan (Persero) PT Aneka Tambang Tbk or PT Antam Tbk
Founded
July 5, 1968
Authorized Capital
Rp3,800 billion
Issued and Fully Paid Capital

Rp953.8 billion
Ownership
Government of the Republic of Indonesia 65%
Public 35%
Line of Business
A leading Indonesian diversified mining and minerals processing company, Antam’s businesses are
vertically intergrated from exploration and mining through to processing, marketing, and trading.
Contact Us
PT ANTAM Tbk
Jl. Letjen TB Simatupang No. 1, Lingkar Selatan, Tanjung Barat
Jakarta 12530
Indonesia
Tel : (62-21) 789-1234, 781 2635

Fax : (62--21) 789-1224
E-mail : corsec@antam.com
For more information please visit our website www.antam.com.

Please contact us to join the e-mail distribution list Antam NewsAlerts.
DISCLAIMER:
This report contains certain statements that may be considered “forward-looking statements”, the Company’s actual results, performance or
achievements could differ materially from those projected in the forward-looking statements as a result, among other factors, of changes in
general, national or regional economic and political conditions, changes in foreign exchange rates, changes in the prices and supply and demand
on the commodity markets, changes in the size and nature of the Company’s competition, changes in legislation or regulations and accounting
202 principles, policies and guidelines and changes in the assumptions used in making such forward-looking statements.

Stay informed about Antam, join Antam NewsAlerts to receive emails

when Antam makes announcements and other information.
We want to start an ongoing dialogue with you. Please contact:

Yudi K. Nurhadi (yudi.nurhadi@antam.com)
Eko Endriawan (eko.endriawan@antam.com)
Fajar Triadi (ftriadi@antam.com)
Cameron Tough (cameron@antam.com)
to find out more.
Calendar 2008
EGMS for Herald Takeover Bid April 18
First Quarter Financial Report April 30
First Quarter Activities Report April 30
International Non Deal Roadshow May
Annual General Meeting, Jakarta, Indonesia June 26
Second Quarter Activities Report July 31
Payment of Dividend August
First Semester Financial Report August 31
Third Quarter Activities Report October 31
Nine Months Financial Report October 31
International Non Deal Roadshow November
Note: these dates are subject to change without notice
203

www.antam.com
PT ANTAM Tbk
Head Office
Jl. Letjen TB Simatupang No. 1
Lingkar Selatan, Tanjung Barat
Jakarta 12530, Indonesia
Tel : (62-21) 789-1234

(62-21) 781-2635
Fax. : (62-21) 789-1224
E-mail: corsec@antam.com

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Farewell Letter from

the President Director

for a Better Future

Cash Soars 317%;

4 Low cost operations

processing activities. Acquisitive Growth Projects, page 83.

For more information please see Organic Growth Projects,

10 Big dividends, lots of cash and

It is the mission of this annual report to create a clear and

If there is ANY part of this report that requires further

2007 Antam Annual Report www.antam.com

The Inves tm e nt C a s e f o r A n ta m Iron, Nickel Contained in Pig Iron 83

Total Consolidated Assets 63 Adoption of the Indonesian Code of Good Corporate

www.antam.com 2007 Antam Annual Report

Earnings Before Interest, Tax,

2007 Antam Annual Report www.antam.com

“We have consistently delivered industry-topping performance and growth.”

www.antam.com 2007 Antam Annual Report

RETURN ON AVERAGE OPERATING CASH FLOW DEBT TO EQUITY

EARNINGS BEFORE INTEREST, REVENUE PER SEGMENT OPERATING INCOME

2007 Antam Annual Report www.antam.com

Why We Do What We Do:

www.antam.com 2007 Antam Annual Report

2007 Antam Annual Report www.antam.com

2. The Chrysler Building was made using

3. The second most important usage of

4. Antam’s .9999 fine gold is internationally

5. The heat resistant nature of nickel protects

www.antam.com 2007 Antam Annual Report

While we do not expect 2008 will be as profitable as 2007, it will be

Production and Sales

Ferronickel metric ton Ni 14,474 18,532 28

Ferronickel metric ton Ni 13,389 17,723 32

2007 Antam Annual Report www.antam.com

REVENUES AND PROFITS soar

www.antam.com 2007 Antam Annual Report

Key Ratios Top 40 Global Indonesian Antam

Key Ratios Australian Miners Indonesian Antam

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5 Year Quarterly Share Price and Trading Volume

Share Price Volume

PER SHARE DATA

2006 2007 Change %

Earnings Per Share* 162.79 538.08 231

Dividend Per Share* 65.116 To be decided in AGM -

SOME OF OUR ANALYSTS: Analyst and Media Coverage (2006 in parenthesis)

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2007: A Great Year

February 5th February 12th

March 12th June 5th

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July 12th August 1st

September 11th September 21th September 21st

MOST READ BLOOMBERG NEWS

2 June 5, Indonesia May Take Back Parts of Coal, Metal Areas

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Cash Cost, Production Cost and Average Selling Price

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What it All Boils Down to:

Mineral Resources and Ore Reserves (‘000 wmt)*

Commodity Quantity Change (%)

Saprolite Nickel 179,850 180,900 1

Limonite Nickel 185,150 214,200 16

Gold 3,863 3,973 3