These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Three months ended March 31, 2008 and 2007 Expressed in rupiah, unless otherwise stated
24
8. FIXED ASSETS continued
Construction in progress consists of:
2008 2007
Machineries under installation 114,483,254,877
316,154,234,808 Buildings and structures under construction
9,487,752,174 4,214,455,529
Others 19,672,649,508
16,739,590,249
Total 143,643,656,559
337,108,280,586
Below are the percentages of completion and estimated completion periods of the construction in progress as of March 31, 2008:
Estimated Percentage Estimated Completion of Completion
Period
Machineries under installation 10 - 98
1 to 24 months Buildings and structures under construction
25 - 95 3 to 24 months
Others 75 - 95
1 to 12 months The unpaid balances to contractors and suppliers for the construction, purchase, repairs and
maintenance of fixed assets amounting to Rp3,838,705,267 and Rp23,371,362,145 as of March 31, 2008 and 2007, respectively, are presented as part of “Other Payables to Third Parties” in the
consolidated balance sheets.
Depreciation, amortization and depletion charges amounted to Rp147,027,194,615 and Rp132,347,429,696 for the three months ended March 31, 2008 and 2007, respectively.
The Company and Subsidiaries insured their fixed assets and inventories against losses from fire and other insurable risks under several combined policies, with a total insurance coverage of
Rp127,785,217,550, US9,240,132, EUR1,332,999,620 and JP¥60,930,000 as of March 31, 2008. 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.
The Company and Subsidiaries own buildingconstruction rights or “Hak Guna Bangunan” HGB, land use rights or “Hak Pakai” HP and land ownership rights or “Hak Milik” HM over land covering
approximately 3,241.69 hectares, and local mining rights or “Surat Izin Penambangan Daerah” SIPD covering approximately 9,581.40 hectares at several locations in Indonesia, with legal terms ranging
from 5 to 30 years. Management believes that such rights can be extended upon their expiration.
As of March 31, 2008, the Company is still in the process of obtaining the titles of ownership or rights over land covering a total area of approximately 392,714 square meters. The Company is also in the
process of acquiring land rights covering a total area of approximately 2,545,695 square meters. The total expenditures amounting to Rp47,726,708,985 as of March 31, 2008 incurred in relation to the
above land rights acquisition process are recorded as part of “Other Non-current Assets” in the consolidated balance sheets.
The Company made advance payments for the purchase of certain machinery, equipment and spare parts from several suppliers. The outstanding balances of the purchase advances as of
March 31, 2008 and 2007 amounting to Rp598,789,467 and Rp13,287,013,779, respectively, are presented as part of “Other Non-current Assets” in the consolidated balance sheets.
The assets under capital lease are collateralized to the related obligations under capital lease Note 13.
These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Three months ended March 31, 2008 and 2007 Expressed in rupiah, unless otherwise stated
25
9. SHORT-TERM LOAN
