NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
66
m.
Based on notarial deed No. 39 dated 21 July 2004 of Dewi Himijati Tandika, S.H., SCK entered into a joint operation known as KSO Summarecon Serpong under an agreement with PT Jakartabaru
Cosmopolitan JBC. Under the agreement, both parties agreed to collaborate in developing 400 hectares of land belonging to JBC in Perumahan Gading Serpong Permai, Tangerang. KSO
Summarecon Serpong has been appointed as the only party which will plan, release, expand and operate the land, while SCK has been appointed to handle the management of the joint operation
and identify financing sources for its operations. Income or loss from operations will be distributed between both parties at 70 for SCK and 30 for JBC. This agreement is valid for a period of 10
years until 20 July 2014.
The obligations of JBC in relation to this joint operation include the following, among others: Provide land to be managed and developed by the parties in KSO Summarecon Serpong
Take responsibility for solving disputes arising from the land development, if any Provide the labor requirements of KSO Summarecon Serpong
Permit SCK to utilize the location license owned by JBC and acquire land ownership over the
undeveloped land Allow SCK to utilize infrastructure located on the land
Assist SCK in obtaining the rights over the remaining land by signing the release of land ownership agreements with the individual land owners.
The obligations of SCK in relation to this joint operation include the following, among others: Provide financing for land development
Provide the labor requirements of KSO Summarecon Serpong Acquire land ownership covered by the project.
The details of assets, liabilities, revenues and expenses of KSO Summarecon Serpong which were proportionally consolidated to SCK’s financial statements representing 70 sharing ratio are as follows:
Total Before Elimination 2012 2011
Assets 879,373,714
647,254,484 Liabilities
879,373,714 647,254,484
Revenues 170,948,770
53,804,164 Expenses
28,830,197 36,480,499
37. DERIVATIVE INSTRUMENTS
The Company is exposed to market risks, primarily changes in currency exchange rates and interest rate, and uses derivative instruments to hedge the risks in such exposures in connection with its risk
management activities, The Company does not hold or issue derivative instruments for trading purposes.
The Company entered into a Cross Currency Interest Rate Swap CCIRS transaction with PT Bank ANZ Indonesia to hedge the Company’s US5 million debt to Resona Note 15, Under the CCIRS, the
Company purchased U,S, dollars with a principal amount of US5 million from PT Bank ANZ Indonesia on 31 August 2006 for a fixed exchange rate of Rp9,085 to US1 with a maturity date on 30 June 2011. The
Company agreed to pay the rupiah principal amortization amount at the fixed exchange rate according to the scheduled dates, and simultaneously receive the fixed U,S, dollar principal amortization amount, PT
Bank ANZ Indonesia agreed to pay the Company monthly interest in U,S,dollars computed at the interest
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
67 rate of 1 month COLF + 2,30 per annum in 2012 and 2011, in exchange for the Company paying monthly
interest to PT Bank ANZ Indonesia in rupiah computed at the rate of 15,35 per annum on the outstanding principal amount. The interest payment period and U,S, dollar interest receipts matched the interest
payment period and U,S, dollar interest payment of the Resona loan. During the year 2012 there was no payment of principal dollars by the company. Whereas during the year 2011, the rupiah principal paid by
the Company amounted to Rp5,344,124 and simultaneously received the U,S dollar principal amounting to US 588,236. The Company recognized the net liability on the CCIRS contract at market value of
Rp201,204, which is presented as “Derivative Liability” in the consolidated statement of financial position as of 31 December 2010.The derivative liability was fully paid in 2011.
The CCIRS instrument was not designated as a hedge for accounting purposes and accordingly, the change in the fair value of the CCIRS was recorded as a charge to “Gain Loss on Derivative Instrument”,
which is presented in the consolidated statements of comprehensive income. In 2010, the Company was required to provide collateral in the form of time deposits for the CCIRS
transaction Note 14.
38. LITIGATIONS
The Company and Subsidiaries are involved in several lawsuits as follows:
a.
Gading Orchard defendant vs,
Gloria Tannos plaintiff in relation to booking fee, On 17 December 2009, the Central Jakarta District Court approved some of the plaintiff’s claim,
However, on 29 December 2009, the defendant filed an appeal to the Jakarta High Court. As of 30 June 2012, no decision has been made by the Jakarta High Court.
b.
CDA defendant and the Company co-defendant I vs. Hj. Lisa dkk plaintiff in relation to the transfer of shares belonging to the plaintiff to H. Sukardi Endang Taruna, S.H. formerly a President
Director of CDA. On 14 July 2010, the East Jakarta District Court decided to refuse the claim which has had permanent legal force because the plantiff has not filed an appeal,
c. CDA defendant vs. Abdul Thalib Bin Haji Abubakar dkk plaintiff. In this case, the plaintiff claimed
from 18 parties including CDA 139,250 square meters of land. The management is of the opinion that the plaintiff’s claim is not based on law because the acquisition of the above land has followed
the relevant rules and regulations. On 11 May 2010, the East Jakarta District Court decided to refuse the claim since the plaintiff could not prove his claim. However, on 30 December 2010, the
plantiff filed an appeal to the Jakarta High Court. On 23 August 2011, the Jakarta High Court affirmed the East Jakarta District Court’s decision. Since the plaintiff has not filed an appeal to the
Supreme Court, the East Jakarta District Court’s decision has permanent legal force.
d.
Kiswantara Partadiredja defendant and BMS co-defendant II vs. Emma Hernasari plaintiff in relation to a dispute between the plaintiff and defendant relating to a sale and purchase of a property
at Gading Park View. On 4 February 2009, the North Jakarta District Court approved the plaintiff’s claim. On 29 April 2009, the defendants filed an appeal to the Jakarta High Court. On 10 November
2010, the Jakarta High Court rejected the defendant’s appeal and commanded BMS to sign a sale and purchase agreement. Then, defendant filed an appeal to the Supreme Court through the North
Jakarta High Court. On 28 January 2011, the North Jakarta High Court refused to continue the defendants’ appeal to the Supreme Court, since the appeal did not fulfill formal requirements.
e.
The Company defendant and Jakarta Provincial Government through the Mayor of North Jakarta co-defendant I vs. E. Atika dkk plaintiff concerning a claim over approximately 20,283 square
meters of land located in Pegangsaan Dua. On 16 March 2011, the North Jakarta District Court decided to refuse the plaintiff’s claim. However, on 30 March 2011, the plaintiff filed an appeal to the
Jakarta High Court. As of 30 June 2012, no decision has been made by the Jakarta High Court.
f.
The Company defendant and the Government of the Republic of Indonesia through the Minister of Internal Affairs, Governor of DKI Jakarta and Supervision and Control of Agency Heads of Jakarta
and North Jakarta defendant II vs. Susanto Arfiana Oen plaintiff. In this case, the plaintiff claimed
