These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003 and 2002 Expressed in rupiah, unless otherwise stated
26
8. PROPERTY, PLANT AND EQUIPMENT continued
Construction in-progress consists of:
2003 2002
Machineries under installation 80,295,187,163
138,697,211,238 Buildings and structures under construction
10,015,875,575 55,657,332,620
Others 8,529,543,391
11,932,134,431
Total 98,840,606,129
206,286,678,289
Below is the percentage of completion and estimated completion period of the construction in-progress as of December 31, 2003:
Estimated Percentage
Estimated Completion
of Completion
Period Machineries under installation
5 - 95 1 to 48 months
Buildings and structures under construction 5 - 98
1 to 8 months Others
5 - 50 3 to 36 months
Property, plant and equipment are used as collateral to secure the long-term loans from banks and financial institutions see Note 11.
Depreciation, amortization and depletion charges amounted to Rp 463,889,614,440 in 2003 and Rp 461,007,305,835 in 2002.
The Company and Subsidiaries insured their property, plant and equipment and inventories against losses from fire and other insurable risks under several combined policies, with a total insurance
coverage of Rp 195,849,368,150 and US 2,795,147,535 as of December 31, 2003. In management’s opinion, the above insurance coverage is adequate to cover any possible losses that may arise from
such risks.
Based on the review of asset values at the end of the year, management believes that there is no potential impairment in the values of the assets included in the consolidated financial statements.
In 2003, the Company sold two of its properties Wisma Indocement and employee housing in Pondok Indah for a net selling price of Rp 202,237,101,000 see Note 17. The gain arising from the sales
amounted to Rp 135.3 billion.
In March 2003, PT Pionirbeton Industri formerly PT Pioneer Beton Industri, a Subsidiary, received a decision letter from the Tax Office which approved the revaluation of its machinery and transportation
equipment. The difference between the revalued amount and the net book value of Rp 18,550,195,620 was recognized as an addition to the carrying value of property, plant and equipment while the
difference between the revalued amount and the fiscal book value of Rp 20,254,205,519 was compensated against PBI’s tax loss carryforward. The remaining useful lives of the revalued
machinery and transportation equipment have been extended by 3 to 5 years.
These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003 and 2002 Expressed in rupiah, unless otherwise stated
27
8. PROPERTY, PLANT AND EQUIPMENT continued
