KIJA REVIEWING 1Q 2015

Q1 2015 vs. Q1 2014 Update

We, PT Kawasan Industri Jababeka Tbk., are currently in the process of undertaking a limited review of our unaudited financial statements as of and for the three months ended March 31, 2015. As a result of the review process, we will not be publishing our first quarter financial statements at the end of April 2015 as typically done; rather, our unaudited financial statements as of and for the three months ended March 31, 2015 will be published by no later than at the end of May 2015 (in accordance with applicable Indonesian regulations). During the course of the review of these financial statements, we have noted certain trends that we wish to bring to the attention of our investors. 

The Rupiah continued to depreciate against the US dollar during the three month ended March 31, 2015 (-5.2%). As a result, we expect to record net foreign exchange losses during this period, primarily relating to mark-to-market changes of our US dollar denominated liabilities. This is in contrast to the currency fluctuations we experienced during the three month period ended March 31, 2014, where the Rupiah appreciated against the US dollar (+6.4%) resulting in a foreign exchange gain for the period of Rp130.6 billion.  The mark-to-market impact of foreign exchange gains (losses) is a non-cash items, and does not have an impact on our cash flows prior to the maturity of the underlying US dollar denominated liabilities. In response to continuing currency fluctuations, we entered into hedging arrangements which provide a partial hedge to the extent the Rupiah:US dollar exchange rate is greater than Rp12,610:US$1 with respect to US$100 million of our US dollar denominated debt, which reduced our exposure to the depreciation of the Rupiah against the US dollar during the three month period ended March 31, 2015. The differing currency fluctuations during the respective three month periods, in conjunction with all other factors that affect our financial and operational performance (including the effect of the implementation of PSAK 24), will have a significant negative impact on our net profit for the three months ended March 31, 2105 compared to the three months ended March 31, 2014.

For further detail, we recommend investors review our reviewed unaudited financial statements as of and for the three months ended March 31, 2015 when published (which, as explained above due to the review process, is expected to be no later than the end of May 2015).