PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and for the Six-Month Periods Then Ended Expressed in thousands of Indonesian Rupiah, unless otherwise stated
37
6. INVENTORIES CONTINUED
As of June 30, 2017, houses, shops and apartment inventories are covered by insurance against fire and other risks with PT Asuransi AXA Indonesia, PT Zurich Insurance Indonesia, PT Asuransi Alianz Utama Indonesia and PT Asuransi
Central Asia, all third parties, with total coverage of US34,289,440 and Rp3,330,702,390. The Group’s management is of the opinion that the above coverage is adequate to cover possible losses arising from such risks.
As of June 30, 2017, revenue from property development presented as part of net revenues in the consolidated statements of profit or loss and other comprehensive income amounted to Rp1,752,671,302 2016: Rp1,453,659,012
Note 26. The Group’s management believes that inventories are realizable at the above amounts and no provision for losses is
necessary.
7. UNDEVELOPED LAND
The details of undeveloped land are as follows:
June 30, 2017 December 31, 2016
Location Area m
2
Amount Area m
2
Amount
Summarecon Bogor 4,152,950
779,699,704 4,149,496
762,575,489 Summarecon Bekasi
3,971,793 944,694,643
3,887,067 928,175,467
Summarecon Makassar 3,488,475
777,732,047 3,347,364
741,673,806 Summarecon Bandung
3,351,679 1,642,075,282
3,339,658 1,600,057,450
Summarecon Serpong 3,036,848
1,022,900,400 2,976,420
1,016,305,263 Summarecon Karawang
338,990 394,305,721
323,721 386,212,986
Others 2,148,431
727,377,673 2,093,341
722,513,983
Total undeveloped land 20,489,166
6,288,785,470 20,117,067
6,157,514,444
The status of ownership of undeveloped land is as follows:
June 30, 2017 December 31, 2016
Status Area m
2
Area m
2
Land certificates already issued 11,108,220
10,623,739 Released rights
9,327,009 9,112,564
In the process of releasing rights 53,937
380,764
Total 20,489,166
20,117,067
Management believes that there will be no issue in obtaining the land certificates and the extension of the land rights since all the land were legally acquired and supported by sufficient evidence of ownership.
As of June 30, 2016, undeveloped land with total area 442,822 m
2
with carrying value amounted Rp41,470,708 are used as collateral for loans from banks, undeveloped land with total area 219,300 m
2
with carrying value amounted Rp20,623,766 are used as collateral for “Obligasi Berkelanjutan I Phase III Note 13.
No borrowing costs have been capitalized to undeveloped land as of June 30, 2017 and 2016.
PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and for the Six-Month Periods Then Ended Expressed in thousands of Indonesian Rupiah, unless otherwise stated
38
8. ADVANCE PAYMENTS
