SURAT DIRJEN PAJAK
S-314/PJ.341/2006
Ditetapkan tanggal 25 April 2006

EXCHANGE OF INFORMATION

We would like to inform you that received letter from our taxpayer : PT. ABC (Tax Identification Number xxx) requesting our approval for writing-off of its account receivable from DEF (address : xxx).

The transactions, suspicious aspects and requested information are pointed out as follows :

1. Transaction

   1. PT. ABC Indonesia exported its product to DEF. In 2004, the amount of PT ABC accounts receivable from DEF was US$ xxx.

   2. PT. ABC is about to write-off 60% of its receivable from DEF due to the bankruptcy of DEF based on information from Korean Court at Inchon. The information stated that DEF was bankrupt since 26 July 2005.

   3. The amount o PT. ABC receivable that is about to be written-of is 60% of US$ xxx or US$ xxx. The rest of the receivable, US$ xxx, will be paid in annual installment start from year 2010 to 2014.

2. Suspicious aspects
   It is suspected that PT ABC and DEF Korea were associated companies.

3. Requested information.

   1. The confirmation on the statement that DEF has been bankrupted.

   2. The amount of PT ABC receivable from DEF (of the amount of accounts payable of DEF to PT ABC) that has been written-off.

   3. The information on whether or not PT ABC and DEF were associated companies.

This request of information is made within the framework of Article 26 of the Agreement for the Avoidance of Double Taxation between our countries.

Your kind assistance and cooperation are highly appreciated.

Sincerely yours,

ttd.

Herry Sumardjito
Director for Tax Regulations