MISITAMA MANDALA SENA

Metro Trade Center, F-15

Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

Executive Summary

Company
Misitama Mandala Sena (MMS) was formed in 1994, to provide superior consulting
in mining exploration and laboratory services. MMS services are focusing in
drilling, geophysical well logging, and topography. We pride on our proven track
record for effectively operating and servicing in the mining field.

Services
Misitama Mandala Sena focuses in three strategic business sectors. Current and
future, MMS brings a fresh and innovative approach to mining exploration and
ensuring clients receive the most effective and professional service. Our goals is
to exceed the expectations of each client by offering outstanding services,
greater value of flexibility, thus optimizing and improving operation efficiency.
Our philosophies are based on client focus, working climate that encourages
performance, creativity and motivation, and commitment on professionalism and
employee’s welfare.

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

Each of the founders has contributed substantially to the company in the form of
sweat equity and capital. Management believes that it is addressing a market
destined to grow substantially with a well-conceived line of products. It is
confident that both market share and revenue projections will, at a minimum, be
achieved in the projected time frame.

The Company

With main office in Bandung, West Java, Misitama Mandala Sena (MMS) provides
superior consulting in mining exploration and laboratory services. MMS brings a
fresh and innovative approach to mining exploration and ensuring clients receive
the most effective and professional service. Our goals is to exceed the
expectations of each client by offering outstanding services, greater value of
flexibility, thus optimizing and improving operation efficiency. Our philosophies
are based on client focus, working climate that encourage performance, creativity
and motivation, and commitment on professionalism and employees’ welfare.

Misitama Mandala Sena focuses on three strategic business sectors in the coal
mining, which are drilling, geologging and topography. Number of employees
reached 120 workers in May 2005 and believed to be increase follows the client’s
demand on MMS services.

MMS pride their selves on the proven track record for effectively operating and
servicing in the mine-field, due to directing our team in the development of
effectively of work in order to ensure that all requirements are met client’s time
schedules.

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

Vision
Dedicated to be a leader in the coal mining industry services and committed to
qualify for fulfilling customer satisfaction

Mission
To be a profitable firm and gives services to the best mining company in
Indonesia

The Market
Coal production reached 114 million metric tons (MT) in 2003, an increase of
nearly 11 percent over the year before. Rising coal prices drove the production
increase. Between April 2003 and December 2003 the pricing of coal rose nearly
60 percent, from $22.75 per metric tons (MT) to $36.00/MT.

Indonesia coals have competitive advantage against others such Australia, due
the following reason;
• Ultra low sulphur (0.1-0.3%) and ash content (1-2%). A little bit higher
moisture content, but due to short transportation distance, it will not
influence the economies of burning this low-rank coal.
• Relative short transportation distance between loading and discharging
port.
• Spontaneous combustion during sea transport could be avoided.
• Sea transport by using small vessel or barges is possible.
• Asean co-operation on energy supply security.
• Pricing policy, for attaining market share first, profit later.

At the time of coal market penetration was conducted, the marketing mix as
framework of analysis, which consist of 4 Ps was adopted, as follows:
• Product : The right one for the target
• Place : Reaching the target
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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

• Promotion : Telling and selling to customers

• Price : Making it right and fair

Table 1 below shows coal production statistic (in thousands MT) from 2001 to
2003

Company 2001 2002 2003 %

Change
PTBA 10,212 9,482 10,072 5.8
Adaro Indonesia 17,708 20,819 22,523 8.2
Kaltim Prima 15,528 17,577 16,203 -7.8
Coal
Kideco 10,381 11,500 14,056 22.2
Arutmin 9,532 10,557 13,615 29
Berau Coal 6,750 7,123 7,360 3.3
Indominco 4,435 5,335 6,327 18.6
Mandiri
Other CCOWs 12,195 14,168 16,217 14.5
Local 5,806 6,811 8,282 21.6
cooperatives
TOTAL 92,546 103,37 114,61 10.9
2 0

Source : Directorate of Mineral and coal Enterprise

During 2005 Indonesia produced 170 million tons where 140 millions tons for
export and 30 millions for domestic used.

Market Segment
Coal mining industry is a kind of big industry that needs excellent
technology and human resources, which is put in a one packet called quality, and
this is something that MMS offered to the customer and also that is needed by

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

the customer. In order to fulfill the needs of excellent synergy between latest
technology and good human resources and also to keep its quality at the highest
level of performance, MMS always tries to segment its business to make it clear
so that it will become the framework of its business.
Segmentation is one thing that is needed by a business, since segment is
already become one of the key success factor of a business. Running a business
is a full-time-high-risk job that needs a good framework in order to keep it in
track. Once a company has exited its framework, it will become a hard job to
keep it back to the track. MMS segmentation in a coal mining industry focused on
a company that has a license to explore and to exploit coal mining in Indonesia.
This is the framework of MMS’ business, and this is become the guidance of MMS
in generating profit and running its business.

Market Target
MMS main target is a coal mining company that is going to explore and
exploit coal in East Kalimantan. “Mining exploration and Laboratory services” is
MMS target, and this is the manifest of its segmentation which is to fulfill the
needs of excellent synergy between latest technology and good human
resources.

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

Market Size

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

Market Share

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

Market Share (cont’d)

The Customers
MMS initial customer list is highlighted below.

TABLE 2

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

CUSTOMER LIST
No. Company Activity Type Head Office Year
1 PT. Mahakam Sumber Logging, Jl. Alaydrus No.80-82 2004-2008
Jaya Drilling Jakarta Pusat – 10130
Telp. 021 – 6338551
2. PT. Tambang Batubara Topography, Jl. Alaydrus No.80-82 2005-2006
Kobexindo Drilling Jakarta Pusat – 10130
Telp. 021 – 6345222
3. PT. Intim Batu Jayatama Logging, Jl. Alaydrus No.80-82 2006
Drilling Jakarta Pusat – 10130
Telp. 021 – 6345222
4. PT.Lakindo Adiguna Drilling Jl. Alaydrus No.80-82 2006
Jakarta Pusat – 10130
Telp. 021 – 6345222
5. PT. Batu Jelita Perkasa Drilling, Jl. Alaydrus No.80-82 2007
Logging Jakarta Pusat – 10130
Telp. 021 – 6345222
6. PT.Santan Batu Bara Drilling, Jl. Taman Kemang No.32 2007-2008
Logging B Jakarta – 12730 Telp.
021-7189121
7. PT. Surya Sakti Darma Logging Jl. Raya Kendang Sari No April 2008
Kencana 11 Surabaya 60292
8. PT. Padang Anugerah Logging Wisma Staco LT.7 Jl 2008
Casablanca Kav.18
Jakarta 12870 Telp. 021-
8317110

TABLE 3
CONTRACT LIST
No. Contract Location Contract number Started Finished
Type
1 Logging 1-2 PT. Santan PTSB/JAK- 26 Oct ‘07 26 Jan ‘08
Batubara SPK/IX/008/2007
(separi)
2 Logging 3-4 PT. Santan PTSB/JAK- 1 Nov ‘07 1 Feb ‘08
Batubara SPK/X/011/2007
(Block E)
3 Bor 1 PT. Santan PTSB/JAK- 26 Oct ‘07 26 April
(8 Unit) Batubara SPK/IX/009/2007 ‘08
(separi)
4 Bor 2 PT. Santan PTSB/JAK- 1 Nov ‘07 1 May ‘08
(7 Unit) Batubara SPK/X/010/2007
(Block E)
5 Bor 3 MSJ (Block D) SP/009/MSJ-MMS/I/2006 Des ‘07
(4 Unit)
6 Bor 5 PT.BJP (Kalteng) SP/006/BJP-MMS/IV/2007 April 2007 Okt ‘07
(4 Unit)
7 Logging 5 PT.BJP SP/007/BJP-MMS/IV/2007 April 2007 Okt ‘07
8 Topografi PT. MSJ block D SP/051/MSJ-MMS/V/2007 28 May '07 28 Okt ‘07
PT. MSJ block E SP/123/MSJ-MMS/X/2007 15 Nov ‘07 15 Jan ‘07
SP/132/MSJ-MMS/XI/2007 25 Nov ‘07 25 Jan ‘07
9 Power Rig PT. MSJ SP/115/MSJ-MMS/X/2006 Nov ‘06 Mei ‘07
(3 Unit) Sept ‘07
10 Logging PT. SSDK 003/SEK/SSDK/MMS/III/08 1 April ‘08 30 April ‘08
Batu Licin Kalsel

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

11 Logging PT. Padang 02/LEG_SPK/PA/V/08 15 Mei ‘08 15 Juli’08

Anugerah
(Kalteng)

For each prospective customer, MMS maintains an in-depth profile covering

services, capital equipment, operating statistic, and other information as
appropriate.

The Competition
As MMS strategy is to address the coal mining exploration markets, this plan does
not address exploration focusing on other markets. In addition, MMS
management is convinced that those companies addressing in coal mining
exploration industry does not represent a competitive threat to the company.

The advantages using MMS services compared others are:

• The service cost is cheaper compare to others.
• MMS provides three services for the coal mining exploration.
• MMS provides mechanics in the fields.
• MMS provides the latest product of geologger.
• MMS provides a professionalism and experience workers.

Marketing Strategy
Marketing strategy is one of the vital processes in Service Company, which MMS
deal with. Projects are obtained through an excellent synergy between perfect
timing and the strategy itself, which is marketing strategy.

MMS’s marketing strategy encompasses an early stage focus on three to five

major customers. The services will follow a stated objective of addressing
quality, innovation, and price. MMS management firmly believes that providing
quality services is it’s first and foremost task in achieving its targeted market

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

share. Services are actually subsets of quality and, as a result, substantial

management attention will be focused in these areas.

There are several strategies which become MMS’ key success in obtained its
projects, they are:

• Combining and integrating three different services (topography, drilling,

and logging) to the customer, and make it available at any time. This
strategy generates customer’s loyalty, since we provide convenience
type of service to the customer, and at the same time, effectiveness and
efficient ness are working simultaneously with it.

• Amplified company’s image through professionalism and a good quality

services by providing the latest and the best tools and also provide an
experienced experts to operate the tools and data analyzing.

• Offer a competitive price from the competitor, and even from the
company that has its own drilling department.

• Promoting MMS to a coal mining company that has license to explore

and to exploit, and also submitting proposal to the company

Services
MMS
DRILLING LOGGING TOPOGRAPHY

Misitama Mandala Sena focuses on three strategic business sectors in the coal
mininig indsutry, which are drilling, geologging and topography.

Drilling :
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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

Drilling is a process of taking a litology coal sample and provide holes for the
purpose of logging process. With this samples, the existance of coal would be
known including its contains and calore.

Geophysical well logging :

Geophysical well logging is needed for the second thought or process of drilling
process result. The outcomes contain datas which would be process in the surfer
software. The logging result gives the information on the depth and thickness of
coal.

Topography Survey:
Is a lay out of natural land and artificial feature on the surface of the earth, and
the science of their detailed, graphic representation on map and charts.

Task - Drilling
• Provide drilling equipment such Koken OE, Tone Tas 3 e, YBM 3 or
equivalent.
• Site preparation, land clearing, leveling and provide settling pond.
• Provide pipe and pump.
• Generate drilling activities based on the agreement.
• Prevent lateness and delay of drilling schedule.
• Provide an official report.
• Maintain sustainability of drilling to reach its target.
• Provide a safety working environment and maintain corporate social
responsibility.
• Provide a drilling rig and assistance to complete the logging.

Task – Geophysical well logging

• Provide geologger equipment such OYO 3030-MARK2 and GWS .
• Check the holes resulted from drilling process.

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

• Find the data from the geologger machine for the objective of the project.

Task – Topography
• Providing surveyor
• Determine the control point
• Prevent lateness of survey or observation which is caused by the
equipment on site
• Create and provide an official survey report
• Maintain sustainability of survey or observation to reach its targets
• Provide a safety working environment and maintain corporate social
responsibility

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

Management
MMS’s three key members of management bring unique and tested skills to the
functional areas. Detailed resumes are available. Presented below are highlights
of prior experience and functional responsibilities at Misitama mandala Sena:

• Iskandar Syah, Commissioner. Iskandar will be charged with overall

operations strategies for the company. In addition, Iskandar has experience
more than 15 years in the coal mining field.
• Pramudya, Business Director – used to work for Lab Quip International
Pty. Ltd. And PT. Rodl Asia as Senior Accountant and Auditor. Wisnu will have
overall responsibility for operations of the company, but will concentrate on
business and development in the first two years. On interim basis, he will
handle the chief financial officer’s responsibilities.
• Arliansyah, Chief Operation Officer. Arli will be charged with overall
operations strategies for the company. In addition, Arli has experience more
than 4 years in the coal mining field.

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

Financial
TABLE 4
INVESTMENT
N
o Description Unit Merk / Type Year
1 Car 2 Unit Avanza 2005

2 Laboratories Equipment 1 Set 1997

3 Biro Table 4 Set Siro 2002

4 Motor Cycle 2 Units Honda 2001

5 Logging 8 Units Oyo 3030 Mark II 1997

Oyo GWS 3630 2005, 2007,2008
6 Drilling Machine 29 units - -
Tone Tas – 3e
-
Tone Tas – 9a
-
TDC – 2
-
Tone Tas – 6
-
KOKEN OE – 2L
-
KOKEN OP – 1
-
TOHO D – 2G
-
TONE NAS – 3 B
-
TONE NAS – 2

7 Pumping Machine 35 units - -

KOKEN MG – 10
-
KOKEN MG – 5
-
Bean Royal RQ –
420
-
YBM SP – 70
-
TOHO BG – 5
-
SANCIN SC – 45
-
SANCIN SC – 120
-
TONE MS – 200
8 Mixer Grouth 10 Units - -

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 MISITAMA MANDALA SENA
Metro Trade Center, F-15
Jl. Sukarno Hatta, Bandung
Phone/fax : 62-22-753 6380
Indonesia 40286

9 Drill Rods 5000 pcs -

1500 pcs AW
1000 pcs -
NQ
-
BW
10 Casing 2000 pcs - -
HQ
11 Sondir 4 units - -

12 Computer 10 Units Intel, AMD 2003

13 Printers 10 Units Canon, HP, Lexmark 2004, 2005, 2007

14 Fax machine 2 Units Panasonic 2004, 2006

15 Radio Handy talky 20 pcs Alinco, I com 2002

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