PT SAMPOERNA AGRO Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Nine Months Ended September 30, 2007 and 2006
Expressed in thousands of Rupiah, unless otherwise stated
23
8. ADVANCES FOR PLASMA PLANTATIONS – NET continued
Telaga Hikmah On August 21, 2000, BRI through Letter No. R.479-MENDPBAKH082000, approved a restructuring
program for its Plasma loan in Telaga Hikmah. Under the restructuring arrangement, the maximum facilities were changed from Rp112,068,000 to Rp101,646,000 which consists of principal of
Rp53,796,000 and interest during construction of Rp47,850,000. The commitment for Plasma development under the loan was reduced from 15,000 hectares to 5,000 hectares. Under this
restructuring program, the conversion of Plasma areas to smallholders is due to be made by December 31, 2004.
The loan is to be repaid by Plasma participants on a quarterly basis within five years, commencing in the first quarter of 2007. The Plasma Loan bears floating interest rates ranging from 12 to 14 in
2006.
In 2006, Telaga Hikmah has transferred Plasma loan facility to Plasma participants amounting to Rp4,483,716. As of September 30, 2007, total Plasma loan had been transferred to plasma participants
amounting to Rp94,127,184.
On January 29, 2007, Telaga Hikmah has fully settled its outstanding investment credit which related to Plasma plantation not yet converted amounting to Rp7,518,815
.
9. PLANTATION ASSETS
Plantation assets are classified as immature and mature plantations.
a. Mature plantations
2 0 0 7 Beginning
Ending balance
Addition Deduction
balance At cost:
Oil palm plantations 186,665,552
401,683,464 -
588,349,016 Rubber plantations
1,022,560 -
- 1,022,560
Total 187,688,112
401,683,464 -
589,371,576
Accumulated amortization: Oil palm plantations
59,739,021 64,914,267
- 124,653,288
Rubber plantations 306,768
38,346 -
345,114 Total
60,045,789 64,952,613
- 124,998,402
Net book value 127,642,323
464,373,173
PT SAMPOERNA AGRO Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Nine Months Ended September 30, 2007 and 2006
Expressed in thousands of Rupiah, unless otherwise stated
24
9. PLANTATION ASSETS continued a. Mature plantations continued
2 0 0 6 Beginning
Ending balance
Addition Deduction
balance At costs:
Oil palm plantations 180,870,239
- 180,870,239
Rubber plantations 1,022,560
- -
1,022,560 Total
181,892,799 -
181,892,799
Accumulated amortization: Oil palm plantations
50,426,912 6,984,081
- 57,410,993
Rubber plantations 255,640
38,346 -
293,986 Total
50,682,552 7,022,427 -
57,704,979
Net book value 131,210,247
124,187,820
Additions to mature plantations in 2007 included Palma Agro’s acquisition cost of Sungai Rangit’s mature plantations which were consolidated starting in 2007 and the additions to this balance of
Rp13,305,714 and its related amortization of Rp665,286 resulting from Palma Agro’s acquisition of Sungai Rangit, as follows:
Cost 275,074,607
Accumulated amortization 39,902,712
Net book value 235,171,895
Additions to mature plantation in 2007, included the realization of the difference in value of restructuring transactions of entities under common control amounting to Rp99,293,758 due to
changes in controlling shareholders Note 2r and 31.
Sungai Rangit has Partnership plantation with carrying value of Rp47,351,090 1,809 ha as of September 30, 2007 Note 27e.
b. Immature plantations
The immature plantations represents costs incurred relating to the development of the Group’s oil palm plantations Inti plantations such as land clearing, planting, fertilizing and other maintenance
activities until the oil palm areas are considered mature Note 2h.
The movement of immature plantations is as follows:
2 0 0 7 2 0 0 6
Beginning balance 15,139,360
10,567,271 Development costs
88,479,384 2,671,390
Transferrred to mature plantations -
- Transfer from nursery
9,044,953 4,192,967
Ending balance 112,663,697
17,431,628
Additions of immature plantations in 2007 included beginning balance of immature plantations amounting to Rp74,123,053 from Sungai Rangit which was consolidated starting January 1, 2007.
PT SAMPOERNA AGRO Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Nine Months Ended September 30, 2007 and 2006
Expressed in thousands of Rupiah, unless otherwise stated
25
9. PLANTATION ASSETS continued b. Immature plantations continued
Plantation assets from Mutiara Bunda Jaya, Telaga Hikmah, Aek Tarum and Gunung Tua Abadi were pledged as collateral for bank loans facilities Note 16.
10. FIXED ASSETS
2 0 0 7 Beginning
Ending balance
Addition Deduction Reclassification
Balance At cost
Land 51,256,906
13,011,736 -
3,594,036 60,674,606
Buildings 86,740,082
49,078,812 3,912
120,070 135,935,052
Infrastructures 32,112,635
346,423 196,928
786,177 33,048,307
Machineries and equipments 248,064,990 58,726,512
- 1,934,762
308,726,264 Storage tanks
10,754,298 -
- 21,526
10,775,824 Vehicle and heavy equipments
55,901,871 23,578,818
4,394,774 -
75,085,915 Office equipments
9,827,677 4,234,484
4,108 41,841
14,099,894 Construction in progress
4,628,558 35,423,829
- 2,904,376
37,148,011 Total
499,287,017 184,400,614
4,599,722 3,594,036
675,493,873 Accumulated depreciation:
Land -
563,011 -
563,011 -
Buildings 19,563,074
14,606,401 2,446
- 34,167,029
Infrastructures 7,832,462
1,283,965 22,975
- 9,093,452
Machineries and equipments 121,476,055 32,632,845
- -
154,108,900 Storage tanks
6,432,013 420,109
- -
6,852,122 Vehicle and heavy equipments
36,328,807 14,036,801
2,089,514 -
48,276,094 Office equipments
5,117,984 2,556,502
1,123 -
7,673,363 Total
196,750,395 66,099,634
2,116,058 563,011
260,170,960 Book value
302,536,622 415,322,913
Allowance for impairment of fixed assets
- 7,442,177
Net book value 302,536,622
407,880,736 2 0 0 6
Beginning Ending
balance Addition
Deduction Reclassification Balance
At cost
Land 51,256,906
- -
- 51,256,906
Buildings 86,275,469
93,092 3,312,176
2,322,087 85,378,472
Infrastructures 30,155,588
151,930 30,085
319,646 30,597,079
Machineries and equipments 242,961,289 1,021,077
39,307 3,158,190
247,101,249 Storage tanks
10,397,038 111,245
41,400 287,416
10,754,299 Vehicle and heavy
equipments 53,601,633
4,139,719 636,996
- 57,104,356
Office equipments 6,683,158
693,145 59,063
1,396,378 8,713,618
Construction in progress 8,833,510
4,875,706 -
7,483,717 6,225,499
Total 490,164,591
11,085,914 4,119,027
- 497,131,478
PT SAMPOERNA AGRO Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Nine Months Ended September 30, 2007 and 2006
Expressed in thousands of Rupiah, unless otherwise stated
26
10. FIXED ASSETS continued