170 Adaro Energy Annual Report 2009
From Us to Y
ou
Running Adaro
Management Report
Owning Adaro
Governing Adaro
Financial Report
Contact Us Corporate Social
Responsibility Adaro in Summary
www.adaro.com
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 532
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008
Expressed in million Rupiah, unless otherwise stated
12. FIXED ASSETS continued
Depreciation expense was allocated as follows:
2009 2008
Cost of revenue 775,872
417,563 General and administrative expenses
21,083 6,053
796,955 423,616
The calculation of loss on disposals of fixed assets was as follows:
2009 2008
Acquisition costs 45,518
19,601 Accumulated depreciation
32,582 10,292
Carrying value of fixed assets 12,936
9,309 Proceeds from disposals of fixed assets
6,286 6,250
Loss on disposals of fixed assets 6,650
3,059 In accordance with the CCA, the fixed assets of Adaro as at 31 December 2009 amounting to Rp 1,431,539 2008: Rp 1,445,829
remain the property of the Government of the Republic of Indonesia. However, Adaro has an exclusive right to use these assets over the contract period, or their useful lives, whichever is shorter.
In accordance with the Cooperation Agreement, the fixed assets of IBT as at 31 December 2009 amounting to Rp 690,681 2008: Rp 763,557, in the coal port operation become the property of Pelindo III at the end of the 30-year operation period.
The Group owns 27 plots of land with “Hak Guna Bangunan” titles “Building-Use Titles” or “HGB” with remaining useful lives of between 10 and 29 years. The Group’s management believes that there will be no difficulty in extending the land rights as the land
was acquired legally and this is supported by sufficient evidence of ownership. In August 2008, ATA paid land compensation amounting to US60,000,000 to PT Cakung Permata Nusa “Cakung”, PT
Cakradenta Agung Pertiwi “Cakradenta” and PT Astra Agro Lestari Tbk “AAL” to settle the status of overlapping land plots between the mining area owned by Adaro and the plantation areas owned by Cakung and Cakradenta of 7,163 hectares.
Currently, the land title is in the process of being transferred to ATA.
As at 31 December 2009, the Group’s fixed assets were insured from all risks for damage with total coverage of approximately Rp 8,579,097, which also includes construction for Project Tanjung Tabalong coal fired power plant by MSW. Management believes
that the fixed assets as at 31 December 2009 were adequately insured. The moveable fixed assets owned by SIS and the land and building owned by SMP were pledged as collateral for the Senior Credit
Facility refer to Note 21b.
Construction in progress
Construction in progress represents projects that have not been completed at the balance sheet date as follows:
2009 Percentage of
Accumulated Estimated
Construction in progress completion
costs completion
Power plant 28
159,518 November 2011
Vessels 40 - 50
78,787 July 2010
Roads and bridges 13 - 98
72,126 January 2010 - 2011
Infrastructure 75
77,104 April 2010
Conveyor belt 10
102,122 December 2011
Coal crushing and handling facilities 63 - 95
32,720 January – April 2010
Others each below Rp 30,000 10 - 98
55,897 January – July 2010
578,274
Adaro Energy Annual Report 2009 171 www.adaro.com
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 533
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008
Expressed in million Rupiah, unless otherwise stated
12. FIXED ASSETS continued Construction in progress continued
2008 Percentage of
Accumulated Estimated
Construction in progress completion
costs completion
River channel dredging 95
402,417 January 2009
Power plant 5
100,034 January 2011
Coal crushing and handling facilities 30 - 70
48,956 March - September 2009
Roads and bridges 10 - 80
32,736 February - December 2009
Others each below Rp 30,000 10 - 95
68,137 2009 - 2010
652,280 13. INVESTMENTS IN ASSOCIATES
2009 2008
PT Rachindo Investments Percentage of interest
50.00 50.00
Carrying amount - beginning balance 5,554
4,778 Share in net loss of associate
19 -
Exchange difference due to financial statement translation 798
776 4,737
5,554 PT Karunia Barito Sejahtera
Percentage of interest 32.80
32.80 Carrying amount - beginning balance
39 39
Share in net income of associate -
- 39
39 Arindo Global Netherlands B.V.
Percentage of interest -
- Carrying amount - beginning balance
- 50
Reversal due to consolidation to the Group -
50 -
- 4,776
5,593 Details of the share in the net loss of associates for the years ended 31 December 2009 and 2008 were as follows:
2009 2008
PT Rachindo Investments 19
- As at 31 December 2008, Arindo Global was consolidated to the Group’s consolidated financial statements as a result of the
acquisition of AIM, Ariane Capital and Agalia refer to Note 3e. Investment in Rachindo was in the form of the assets acquired through the acquisition of Decimal which had been liquidated and
transferred to Rachpore refer to Note 3h.
14. MINING PROPERTIES 2009
2008 Acquisition cost
Carrying amount - beginning balance 10,725,530
164,955 Addition
- 10,404,267
New tax rate adjustment -
35,580 Exchange difference due to financial statement translation
212,675 191,888
10,512,855 10,725,530
