CONTENTS

INDEPENDENT AUDITOR'S REPORTPages

- REPORT ON FINANCIAL POSITION 1- STATEMENTS ON ACTIVITIES AND FUND BALANCES 2- STATEMENTS ON ACTIVITIES AND FUND BALANCES 3- NOTES TO THE FINANCIAL STATEMENT 4 - 8

YAYASAN LEMBAGA KAJIAN ADVOKASIUNTUK INDEPENDENSI PERADILAN (LeIP)

INDEPENDENT AUDITOR'S REPORTAND

FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2010 AND 2009

YAYASAN LEMBAGA KAJIAN ADVOKASIUNTUK INDEPENDENSI PERADILAN (LeIP)REPORT ON FINANCIAL POSITIONAS OF DECEMBER 31, 2010 AND 2009

(In Rupiah)

Notes 2010 2009ASSETS

Cash and cash equivalent 3 712,362,030 421,198,830 Receivables 4 16,000,000 - Advanced payment 5 6,690,020 9,298,850 Fixed assets - net 2c.6 38,507,300 35,318,760

TOTAL ASSETS 773,559,350 465,816,440

LIABILITIES AND FUND BALANCESLIABILITIES

Payables 33,078,330 33,078,330

FUND BALANCESUnrestricted (945,755,960) (248,103,300)Temporary restricted 1,686,236,980 680,841,410

Total Fund Balances 740,481,020 432,738,110

TOTAL LIABILITIES AND FUND BALANCES 773,559,350 465,816,440

- - See the accompanying notes to financial statementswhich are an integral part of the financial statements

YAYASAN LEMBAGA KAJIAN ADVOKASIUNTUK INDEPENDENSI PERADILAN (LeIP)STATEMENTS ON ACTIVITIES AND FUND BALANCESFOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

(In Rupiah)

Notes 2010Unrestricted Temporary Restricted T o t a l

INCOME 2.b,d,e.7Donation - 1,557,845,780 1,557,845,780 Contribution Management Board 122,820,230 - 122,820,230 Others 22,437,610 - 22,437,610

T o t a l 145,257,840 1,557,845,780 1,703,103,620

EXPENSES 2.d,e.7Program - 400,200,280 400,200,280 General and administration 829,649,040 152,249,930 981,898,970 Depreciation 13,261,460 - 13,261,460

T o t a l 842,910,500 552,450,210 1,395,360,710

CHANGES IN FUND BALANCE (697,652,660) 1,005,395,570 307,742,910

FUND BALANCE AT THE BEGINNING OF YEAR (248,103,300) 680,841,410 432,738,110

FUND BALANCE AT THE END OF YEAR (945,755,960) 1,686,236,980 740,481,020

2009Unrestricted Temporary Restricted T o t a l

INCOME 2.b,d,e.7Donation - 1,435,039,060 1,435,039,060 Contribution Management Board 28,540,000 - 28,540,000 Others 20,448,270 - 20,448,270

T o t a l 48,988,270 1,435,039,060 1,484,027,330

EXPENSES 2.d,e.7Program - 718,013,370 718,013,370 General and administration 480,798,870 75,350,800 556,149,670 Depreciation 5,643,440 - 5,643,440

T o t a l 486,442,310 793,364,170 1,279,806,480

CHANGES IN FUND BALANCE (437,454,040) 641,674,890 204,220,850

FUND BALANCE AT THE BEGINNING OF YEAR 189,350,740 39,166,520 228,517,260

FUND BALANCE AT THE END OF YEAR (248,103,300) 680,841,410 432,738,110

See the accompanying notes to financial statements

which are an integral part of the financial statements

YAYASAN LEMBAGA KAJIAN ADVOKASIUNTUK INDEPENDENSI PERADILAN (LeIP)STATEMENTS ON ACTIVITIES AND FUND BALANCESFOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

(In Rupiah)

2010 2009

CASH FLOWS FROM OPERATING ACTIVITIESCash from donation / contribution 1,703,103,620 1,484,027,330 Cash from receivables (16,000,000) 5,600,000 Payment for employees, program and others (1,379,490,420) (1,272,765,550)Payables - (155,846,670)

Net Cash Provided by Operating Activities 307,613,200 61,015,110

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of fixed assets (16,450,000) (33,575,000)

Net Cash Provided by Investing Activities (16,450,000) (33,575,000)

NET INCREASE (DECREASE) IN CASH AND BANK 291,163,200 27,440,110

CASH AND BANK AT THE BEGINNING OF YEAR 421,198,830 393,758,720

CASH AND BANK AT THE END OF YEAR 712,362,030 421,198,830

- - See the accompanying notes to financial statementswhich are an integral part of the financial statements

YAYASAN LEMBAGA KAJIAN ADVOKASI UNTUK INDEPENDENSI PERADILAN (LeIP)NOTES TO THE FINANCIAL STATEMENTFOR THE YEARS ENDED / AS OF DECEMBER 31, 2010 AND 2009

(in Rupiah)

1. GENERAL

Establishment

Venue and Domicile

Principle and BasisThis foundation has the principle of and is based on the constitution of the Republic of Indonesia.

Purpose and BasisThe purpose and objective of this foundation is :To realize the independency of judicature in Indonesia.

ActivityTo achieve the above-mentioned objective, the foundation will carry out the following activities :

1.

2. Holding scientific meetings in the forms of conferences, workshop, seminars, etc.3.

4.

5.

6. Carrying out activities in the widest sense to realize judicature independency.

Yayasan Lembaga Kajian Advokasi Untuk Independensi Peradilan, abbreviated to "LeIP" was established under the deed of notary Nila Noordjasmani Soeyasa Besar, SH., dated May 3, 2000 No.1, in lien of Imas Fatimah, SH., Notary in Jakarta.

Yayasan Lembaga Kajian Advokasi Untuk Independensi Peradilan was established for an indefinite period of time.

Yayasan Lembaga Kajian Advokasi Untuk Independensi Peradilan (LeIP), hereinafter referred to as foundation, is domiciled in Jakarta, and can set up branches or representative office in other places in other places, which are deemed necessary, which are determined by Management Board of the Foundation.

Conducting studies and researches to raise issues and find appropriate solutions for the realization of judicature independency in Indonesia.

Disseminating results of studies, researches and other information relating to judicature independency in the form of publishing books, journals, newsletters, brochures, etc. Establishing cooperation with governmental or non governmental institutions in Indonesia and overseas.Receiving and following up community complaints regarding violations to principles of judicature independency.

CapitalThe capital of this foundation consists of :a.

b.

c. Assistance/subsidy/facility form the state and or the community.d. Income earned by this foundation form the activities carried out by the foundation; andf. Other sources, which are legal and not binding.

Organizational StructureThe organization of foundation consists of :- Founding Board- Advisory Board- Management Board

Dissolution

Composition of Management Board :General Chairman : Mr. Frans Hendra Winarta, SH.Chairman I : Mr. Mas Achmad Santosa, SH., Lex Legibus MagisterChairman II : Mrs. Sukma Violetta SaniSecretary : Mr. Rifqi Sjarief AssegafMembers : - Mrs. Josi Khatarina

- Mrs. Bivitri Susanti- Mr. Windu Kisworo- Mr. Ibrahim Sjarief

Founding Boards :Mr. Adnan Buyung Nasution, SH.Mr. Benjamin Mangkoedilaga, SH.Mr. Todung Mulya Lubis, SH.Mr. Ronggur Hutagalung, SH.Mr. Prof, DR. Johanes Sahetapy, SH.Mr. Tumbuan Frederik Bernard GeorgeMr. Frans Hendra Winarta, SH.Mr. Atmakusumah Astra AtmadjaMr. Harman Benedikus, SH.

Initial capital totaling Rp. 550.000,- (five hundred and fifty thousand rupiahs) as having been raised by the founders of foundation.Regular and irregular donations form individuals/organizations having sympathy to the objective and activities of the foundation.

The initial capital of the foundation which has been donated by the founders cannot be withdrawn and inherited.

If the foundation has been declared dissolved, the Management Board is obliged to settle the debts

and claims of this foundation under the control of the Advisory Board and the remaining assets shall

be granted to the foundation which has similar objective to be determined by the Advisory Board.

Mr. Mas Achmad Santosa, SH., Lex Legibus MagisterMr. Bambang Widjojanto

Composition of Advisory Boards :Chairman : Mr. Adnan Buyung Nasution, SH.Deputy Chairman : Mr. Benjamin Mangkoedilaga, SH.Secretary I : Mr. Todung Mulya Lubis, SH.Secretary II : Mr. Ronggur Hutagalung, SH.Members : Mr. Prof, DR. Johanes Sahetapy, SH.

Mr. Tumbuan Frederik Bernard GeorgeMr. Frans Hendra Winarta, SH.Mr. Atmakusumah Astra AtmadjaMr. Harman Benedikus, SH.Mr. Mas Achmad Santosa, SH., Lex Legibus MagisterMr. Bambang Widjojanto

2. ACCOUNTANCY POLICY

a. Basis for Preparation of Financial Report

b. Recognition of IncomeContribution is entered on the basis of cash receipt.Income is entered on the basis of the delivery of service to employer.Burden is recognized in accordance with the period of utilization (accrual basis).

c. Fixed assets and depreciationFixed assets and recorded on the basis of acquisition cost/price of acquisition.

- Office equipment = 4 Years

d. Fund BalanceThe net balance of Income against expenses during the year is accumulated as Fund Balance.

e. Classification of Fund Balance (net assets)

Organization's financial report presented in full Rupiah is prepared on the accrual basis with the concept of historical value. The report on cash flow is prepared with the direct method.

Depreciation of the fixed assets is counted using the straight line method base on the estimation of the time usage of the assets, as follows :

The normal maintenance burden is charged to the report on the on-going activity, while the repair, addition, rehabilitation, expansion, etc which increase the period of utilization or capacity of assets are capitalized.

The organization presents grant or wakaf in the forms of cash or other assets as a committed

contribution, if the grant or wakaf is received with the condition which restricts the use of funds

(the asset). If the restriction of the contributor has expired, namely at the time the period of the

restriction has ended or the restriction of the goal has been met, the temporarily committed fund

balance (net asset) is regrouped into the uncommitted fund balance (net asset) and presented in

the report on activities as the fund balance (net assets) which is exempted from restriction.The organization presents grant or wakaf in the forms of land, building and equipment as uncommitted contribution, except if there is a restriction which explicitly states the goal of the utilization of the assets from contributor. The grant or wakaf for fixed assets with explicit restriction stating the goal of utilization of the asset and the contribution in the forms of cash or other asset which must be used to acquire fixed asset, are presented as committed contribution. if there is no explicit restriction from the contributor concerning the restriction on the period of utilization of the fixed asset, the exemption of the restriction is reported at the time the fixed asset is utilized.

3. CASH AND CASH EQUIVALENT2010 2009

Cash 886,280 1,451,000

Bank :- Lippo Bank (378) 5,096,250 1,884,250 - Lippo Bank (552) 5,273,230 2,061,230 - Lippo Bank (544) 4,351,530 1,994,530 - Lippo Bank (561) 435,741,720 166,027,920

450,462,730 171,967,930

Deposit 261,013,020 247,779,900

T o t a l 712,362,030 421,198,830

4. RECEIVABLES2010 2009

- Staff 16,000,000 -

T o t a l 16,000,000 -

5. ADVANCE PAYMENT

2010 2009

- Insurance 6,614,970 5,023,590 - Others 75,050 4,275,260

T o t a l 6,690,020 9,298,850

6. FIXED ASSETS2010 2009

Acquisition CostOffice equipment 133,553,500 117,103,500

Accumulated Depreciation

The organization presents grant or wakaf in the forms of land, building and equipment as uncommitted contribution, except if there is a restriction which explicitly states the goal of the utilization of the assets from contributor. The grant or wakaf for fixed assets with explicit restriction stating the goal of utilization of the asset and the contribution in the forms of cash or other asset which must be used to acquire fixed asset, are presented as committed contribution. if there is no explicit restriction from the contributor concerning the restriction on the period of utilization of the fixed asset, the exemption of the restriction is reported at the time the fixed asset is utilized.

Office equipment (95,046,200) (81,784,740)

Book value 38,507,300 35,318,760

7. FUND BALANCES

2010 2009Unrestricted

Income : Contribution Management Board 122,820,230 28,540,000 Others 22,437,610 20,448,270 Contribution SRF for program - -

T o t a l 145,257,840 48,988,270

Expenses : General And Administration 829,649,040 480,798,870 Depreciation 13,261,460 5,643,440

T o t a l 842,910,500 486,442,310

Changes in fund balance (697,652,660) (437,454,040)Fund balance at the beginning of year (248,103,300) 189,350,740

Fund balance at the end of year (945,755,960) (248,103,300)

Temporary RestrictedIncome : Donation 1,557,845,780 1,435,039,060 Release from unrestricted - -

Total 1,557,845,780 1,435,039,060

Expenses : Program 400,200,280 718,013,370 General And Administration :

Insurance 13,299,630 14,216,360 Photo copy, Printing, etc 117,258,650 43,305,200 Telephone and Internet 9,317,460 10,497,930 Post 5,886,000 1,709,500 Bank charge 6,488,190 5,621,810

152,249,930 75,350,800

Total 552,450,210 793,364,170

Changes in fund balance 1,005,395,570 641,674,890

Fund balance at the beginning of year 680,841,410 39,166,520

Fund balance at the end of year 1,686,236,980 680,841,410

YAYASAN LEMBAGA KAJIAN ADVOKASI UNTUK INDEPENDENSI PERADILANWORKING TRAIL BALANCEPER DECEMBER 31, 2010 AND 2009

Per Book2010

CashPetty cash 886,280 Petty cash - TAF - Others

886,280 Bank

Lippo Bank (378) 5,096,250 Lippo Bank (552) 5,273,230 Lippo Bank (544) 4,351,530 Lippo Bank (561) 435,741,720

450,462,730 Deposito

Deposito - 372-01-00011-21-7 261,013,020

ReceivableOthersPSHK - Staff 16,000,000

16,000,000 Advance Payment

ProgramOther 75,050 Insurance 6,614,970

6,690,020 Fixed AssetsAqusition Cost

Office Equipment 133,553,500 Accumulated Depreciation

Office Equipment (95,046,200)

Book value 38,507,300

TOTAL ASSETS 773,559,350

LIABILITES AND FUND BALANCELIABILITESOther Payables

Others 33,078,330

FUND BALANCEUnrestricted (945,755,960)Temporary restriced 1,686,236,980

740,481,020

TOTAL LIABILITES AND FUND BALANCE 773,559,350

BALANCE -

Found BalanceUnrestrictedIncome

Contribution Management Board 122,820,230 Others 22,437,610 Contribution SRF for program

Total 145,257,840

Expenses General And Administration 829,649,040 Depreciation 13,261,460

Total 842,910,500

Changes in fund balance (697,652,660)Fund balance at the beginning of year (248,103,300)Fund balance at the end of year (945,755,960)

Temporary RestrictedIncome

Donation 1,557,845,780 Release from unrestricted

Total 1,557,845,780

Expenses Program 400,200,280 Insurance 13,299,630 Foto copy, Priniting, etc 117,258,650 Telephone and Internet 9,317,460 Post 5,886,000 Bank charge 6,488,190

Total 552,450,210

Changes in fund balance 1,005,395,570

Fund balance at the beginning of year 680,841,410

Fund balance at the end of year 1,686,236,980 - 307,742,910

AuditedAdjusment 2010 2009

886,280 1,451,000 - - 886,280 1,451,000

5,096,250 1,884,250 5,273,230 2,061,230 4,351,530 1,994,530 435,741,720 166,027,920 450,462,730 171,967,930

261,013,020 247,779,900

- - - - 16,000,000 - 16,000,000 -

- - 75,050 4,275,260 6,614,970 5,023,590 6,690,020 9,298,850

133,553,500 117,103,500

(95,046,200) (81,784,740)

38,507,300 35,318,760

773,559,350 465,816,440

33,078,330 33,078,330

(945,755,960) (248,103,300) 1,686,236,980 680,841,410 740,481,020 432,738,110

773,559,350 465,816,440

- -

122,820,230 28,540,000 22,437,610 20,448,270 - - 145,257,840 48,988,270

829,649,040 480,798,870 13,261,460 5,643,440 842,910,500 486,442,310

(697,652,660) (437,454,040) (248,103,300) 189,350,740 (945,755,960) (248,103,300)

1,557,845,780 1,435,039,060 - - 1,557,845,780 1,435,039,060

400,200,280 718,013,370 13,299,630 14,216,360 117,258,650 43,305,200 9,317,460 10,497,930 5,886,000 1,709,500 6,488,190 5,621,810 552,450,210 793,364,170

1,005,395,570 641,674,890

680,841,410 39,166,520

1,686,236,980 680,841,410

204,220,850

YAYASAN LEMBAGA KAJIAN ADVOKASI UNTUK INDEPENDENSI PERADILANWORKING TRAIL BALANCEPER DECEMBER 31, 2010

Ordinary Income/ExpensesIncome

Books Selling 95,000 Donation from Management Board 122,820,230 Grants 1,557,845,780 Interest Income 22,342,610 Sharing Courier - 1,703,103,620

ExpensesAdvertising & Talk Show 215,000,000 Bank Service Charges 6,488,190 Books 3,092,000 Cost of Depreciation Assets 13,261,460 Equipment

Peralatan komputer 720,000 Fiscal, Visa & Taxes

Denda PPh 25PKBPBB 152,000 PPN 21,200,000 PPh21 - Fiscal, Visa & Taxes - Others 145,000

Honorarium for OCTranscriptorConsulting 61,739,800 Nara sumber 650,000

Insurance premi 13,299,630 Miscellaneous 10,000,000 Payroll expenses

Gaji pokok 288,776,250 Insentif Program 75,000,000 Lain-lain 5,000,000 Overtime 320,700 Pesangon 1,248,750 Supporting staff 5,000,000 THR 25,869,200 Transport 43,244,360

Tunjangan Jabatan 21,000,000 Tunjangan Keluarga 30,000,000 Tunjangan Pajak 19,290,980 Tunjangan maternity 300,000 Tunjangan Makan 1,900,000

Postege and Delivery 5,886,000 Priting and Reproduction

Pothocopy 3,988,650 Printing 113,270,000

829,649,040 Program expenses

Per Diem 3,760,000 3,760,000 Program expert

AccountingConsultantCreative designer 9,071,500 Enumerator 42,337,170 Moderator 2,750,000 FacilitatorNarasumber 13,350,000 Notulen 2,100,000 Organizing Committee 6,000,000 ResearcherSpeakers 14,000,000 Translator & Editor 19,376,240 Typist 6,475,000 115,459,910

PSHK Expenses - - Publication Documentation 302,000 302,000 Rent

Equipment RentalIn focus rentalOffice over head sharing 102,299,280 102,299,280

RepairsComputer Repairs 975,000 Motor repairs 466,400 Repairs - others - 1,441,400

SecretariatKarangan Bunga 250,000 Office 5,179,500 Pentry 1,643,010 Project - 7,072,510

Souvenirs 2,000,000 2,000,000 Sub Grantee Research & Seminars 80,707,350 80,707,350 Telphone & Internet 9,317,460 9,317,460 Training and Courses 500,000 500,000

Travel & EntMeal 7,893,370 Room Hotel 2,600,000 Transport

Airfare tiket 7,623,700 Bensin & parkir 686,230 In City transport 16,204,530 Transport konsultan 5,550,000

Vanue 31,100,000 Web site 15,000,000

Other Income (expeses)Piutang tak tertagih

400,200,280 1,395,360,710

307,742,910