PT Vale Indonesia Tbk

LAPORAN KEUANGAN/ FINANCIAL STATEMENTS

31 Desember 2016 dan 2015/ December 31, 2016 and 2015

PT Vale Indonesia Tbk

Daftar isi/Contents Surat Pernyataan Tanggung Jawab Direksi/Directors Statement of Responsibility Laporan Keuangan untuk tahun-tahun yang berakhir pada 31 Desember 2016 dan 2015:/ Financial Statements for the years ended December 31, 2016 and 2015:

Laporan Posisi Keuangan/ Statements of Financial Position ................................................................................................................................................... 1 - 2

Laporan Laba Rugi dan Penghasilan Komprehensif Lain/ Statements of Profit or Loss and Other Comprehensive Income ....................................................................................................... 3

Laporan Perubahan Ekuitas/ Statements of Changes in Equity ....................................................................................................................................................... 4

Laporan Arus Kas/ Statements of Cash Flows ................................................................................................................................................................. 5

Catatan atas Laporan Keuangan/ Notes to the Financial Statements .............................................................................................................................................. 6 - 67

Laporan Auditor Independen/Independent Auditors Report

SURAT PERNYATAAN DIREKSI TENTANG TANGGUNG JAWAB ATAS LAPORAN KEUANGAN PADA DAN UNTUK TAHUN-TAHUN YANG BERAKHIR

THE DIRECTORS' STATEMENT OF RESPONSIBILITY FOR THE FINANCIAL

STATEMENTS AS OF AND FOR THE YEARS ENDED

DECEMBER 31, 2016 AND 2015 31 DESEMBER 2016 DAN 2015

PT VALE INDONESIA Tbk

Atas nama Direksi, kami, yang bertanda tangan di bawah On behalf of the Board of Directors, we, the undersigned: ini:

1.

2.

Nama Alamat Kantor

Alamat Domisili (sesuai KTP) Telepon Kantor Jabatan

Nama Alamat Kantor

Alamat Domisili (sesuai KTP)

Telepon Kantor Jabatan

Nicolas D. Kanter The Energy Building, Lt. 31, SCBD Lot 11A

JI. Jend. Sudirman Kav. 52-53 Jakarta 12190

JI. Cikatomas II No. 5 Kebayoran Baru, Jakarta Selatan

+62 21 524 9001/524 9000 Presiden Direktur/President Director

Febriany Eddy The Energy Building, Lt. 31, SCBD Lot 11 A

JI. Jend. Sudirman Kav. 52-53 Jakarta 12190

JI. Senopati Raya, RT/RW 008/003 Kebayoran Baru, Jakarta Selatan

+62 21 524 9002/524 9000 Direktur Keuangan/Chief Financial Officer

Name Office Address

Address of Domicile (as per Identity Card)

Office Telephone Position

Name Office Address

Address of Domicile (as per Identity Card)

Office Telephone Position

menyatakan bahwa: declare that:

1.

2.

Kami bertanggung jawab atas penyusunan dan penyajian laporan keuangan PT Vale Indonesia Tbk ("Perseroan");

Laporan keuangan Perseroan telah disusun dan disajikan sesuai dengan Standar Akuntansi Keuangan di Indonesia;

1. We are responsible for the preparation and presentation of the financial statements of PT Vale Indonesia Tbk (the "Company);

2. The Company's financial statements have been prepared and presented in accordance with Indonesian Financial Accounting Standards;

3. a. Pengungkapan yang telah kami buat dalam 3. laporan keuangan Perseroan telah lengkap

a. The disclosures we have made in the Company's financial statements are complete and accurate; dan akurat;

b. Laporan keuangan Perseroan tidak mengandung informasi yang tidak benar, dan kami tidak menghilangkan informasi atau fakta yang material terhadap laporan keuangan Perseroan;

b. The Company's financial statements do not contain misleading information, and we have not omitted any information or facts that would be material to the Company's financial statements;

4. Kami bertanggung jawab atas pengendalian 4. internal Perseroan.

We are responsible for the Company's internal control.

Demikian pernyataan ini dibuat dengan sebenarnya. This statement is made truthfully.

Atas nama dan mewakili Direksi For and on behalf of the Board of Directors

Jakarta, 22 Februari 2017/February 22, 2017

Presiden Direktur/President Director Direktur Keuangan/Chief Financial Officer

(Febriany Eddy)

PT Vale Indonesia Tbk it. Jakarta: The Energy Building 31st Fl. SCBD Lot 11 A, JI. Jend. Sudirman Kav. 52-53, Jakarta 12190, Indonesia. T. (62) 21 524 9000 F. (62) 21 524 9020 Makassar: JI. Somba Opu No. 281, Makassar 90001, Indonesia. T. (62) 411 873 731 F. (62) 411 856 157 Sorowako: Plant Site Sorowako, Kabupaten Luwu Timur 92984, Sulawesi Selatan, Indonesia. T. (62) 21 524 9100 F. (62) 21 524 9565 www.vale.com/indonesia

PT Vale Indonesia Tbk

Catatan atas laporan keuangan merupakan bagian yang tidak terpisahkan dari laporan keuangan secara keseluruhan.

The accompanying notes form an integral part of these financial statements.

1

LAPORAN POSISI KEUANGAN STATEMENTS OF FINANCIAL POSITION PADA 31 DESEMBER 2016 DAN 2015 AS AT DECEMBER 31, 2016 AND 2015 (Disajikan dalam ribuan Dolar AS, kecuali dinyatakan lain) (Expressed in thousands of US Dollars, unless otherwise stated) Catatan/ Notes 2016 2015 ASET ASSETS ASET LANCAR CURRENT ASSETS Kas dan setara kas 2.7, 5a 185,560 194,754 Cash and cash equivalents Investasi jangka pendek 2.7, 5b - 90,154 Short-term investments Kas yang dibatasi penggunaannya 2.7, 5c 29,725 27,802 Restricted cash Piutang usaha Trade receivables - Pihak-pihak berelasi 2.8, 2.26, 6, 31e 146,616 78,200 - Related parties Persediaan, bersih 2.9, 8 129,796 104,066 Inventories, net Pajak dibayar di muka 2.17, 14a Prepaid taxes - Pajak penghasilan badan 28,921 - - Corporate income tax - Pajak lainnya 71,533 91,137 - Other taxes Biaya dibayar di muka dan uang muka 2.10, 9 3,940 5,045 Prepayments and advances Aset keuangan lancar lainnya 7, 31e 3,063 3,742 Other current financial assets

Jumlah aset lancar 599,154 594,900 Total current assets

ASET TIDAK LANCAR NON-CURRENT ASSETS Kas yang dibatasi penggunaannya 2.7, 5c 6,365 5,061 Restricted cash Pajak dibayar di muka 2.17, 14a Prepaid taxes - Pajak penghasilan badan 22,631 28,976 - Corporate income tax - Pajak lainnya 54,038 43,578 - Other taxes Piutang non-usaha Non-trade receivables - Pihak-pihak berelasi 2.8, 2.26, 31e 140 263 - Related parties Aset tetap, bersih 2.11, 2.12, 2.13, 10, 11 1,532,653 1,603,302 Fixed assets, net Aset keuangan tidak lancar Other non-current financial lainnya 12 10,511 13,081 assets

Jumlah aset tidak lancar 1,626,338 1,694,261 Total non-current assets

JUMLAH ASET 2,225,492 2,289,161 TOTAL ASSETS

PT Vale Indonesia Tbk

Catatan atas laporan keuangan merupakan bagian yang tidak terpisahkan dari laporan keuangan secara keseluruhan.

The accompanying notes form an integral part of these financial statements.

2

LAPORAN POSISI KEUANGAN STATEMENTS OF FINANCIAL POSITION PADA 31 DESEMBER 2016 DAN 2015 AS AT DECEMBER 31, 2016 AND 2015 (Disajikan dalam ribuan Dolar AS, kecuali dinyatakan lain) (Expressed in thousands of US Dollars, unless otherwise stated) Catatan/ Notes 2016 2015 LIABILITAS LIABILITIES LIABILITAS JANGKA PENDEK CURRENT LIABILITIES Utang usaha Trade payables - Pihak-pihak berelasi 2.24, 2.26, 13, 31f 6,537 8,712 - Related parties - Pihak ketiga 2.24, 13 57,737 76,924 - Third parties Akrual 2.16,15a, 31f 16,542 16,802 Accruals Liabilitas imbalan kerja Short-term employee benefit jangka pendek 2.18, 16 10,700 4,922 liabilities Utang pajak 2.17, 14b 1,490 1,806 Taxes payable Bagian jangka pendek atas Current portion of long-term pinjaman bank jangka panjang 2.23,17 36,462 36,219 bank borrowings Liabilitas atas pembayaran berbasis Share-based payment saham 2.18 1,273 854 liabilities Liabilitas keuangan jangka pendek Other current financial lainnya 15b 1,248 2,260 liabilities

Jumlah liabilitas jangka pendek 131,989 148,499 Total current liabilities

LIABILITAS JANGKA PANJANG NON-CURRENT LIABILITIES Pinjaman bank jangka panjang 2.23, 17 73,095 109,858 Long-term bank borrowings Liabilitas imbalan pascakerja Long-term post-employment jangka panjang 2.18,18 17,729 14,383 benefit liabilities Liabilitas pajak tangguhan, bersih 2.17, 14d 115,964 124,780 Deferred tax liabilities, net Provisi atas penghentian Provision for asset pengoperasian aset 2.15, 26 52,126 57,684 retirement

Jumlah liabilitas jangka panjang 258,914 306,705 Total non-current liabilities

JUMLAH LIABILITAS 390,903 455,204 TOTAL LIABILITIES

EKUITAS EQUITY Modal saham Share capital - Modal dasar - - Authorized capital - 39.745.354.880 saham dengan 39,745,354,880 shares with nilai nominal Rp25 per saham par value Rp25 per share (nilai penuh) pada (full amount) as at 31 Desember 2016 dan December 31, 2016 and 31 Desember 2015 December 31, 2015 - Modal ditempatkan dan disetor - Issued and fully paid capital - penuh - 9.936.338.720 saham 9,936,338,720 shares as at pada 31 Desember 2016