PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
44
21. TRANSACTIONS AND ACCOUNTS WITH RELATED PARTIES continued
Nature of relationship and type of transaction with the above related parties are as follows:
No. Related Parties
Nature of Relationship Type of Transaction
1. HCT Services Asia Pte., Ltd., Under Common Control Sale of finished goods and purchase of
Singapore raw materials
2. HC Finance B.V., Netherlands Under Common Control Long-term loan
3. HeidelbergCement Technology Under Common Control Professional fee
Center GmbH 4. PT Cibinong Center Industrial Estate Associated Company Rental of industrial estate and sale of
water and electricity 5. Stillwater Shipping Corporation
Associated Company Transportation
6. PT Pama Indo Mining Associated Company Mining service
7. WestLB AG, Tokyo Affiliated Company
Long-term debt 8. WestLB Asia Pacific Ltd., Singapore Affiliated Company
Long-term debt 9. Officers and employees
Employees Loan
Effective July 1, 2005, WestLB AG, Tokyo and WestLB Asia Pacific Ltd., Singapore were no longer related parties.
In the EGMS held on February 23, 2005, the independent shareholders approved the proposals for recurring transactions mainly purchase of raw materials with HC Fuel Limited, HCT Services
Asia Pte. Ltd., and HeidelbergCement Technology Center GmbH, the Company’s related parties. Each of the above transactions should be conducted on an arm’s length basis and should not exceed 5 of
the Company’s stockholder’s equity based on the latest audited consolidated financial statements.
22. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES a. On June 1, 2005, the Company entered into an agreement with PT Rabana Gasindo Makmur
RGM for the supply of natural gas for the cement plants in Cirebon. The supply agreement provides for an annual minimum purchase quantity. If the Company is unable to consume the
agreed volume of natural gas, the Company should pay for the unconsumed volume to RGM. However, such payment can be treated as a prepayment and can be applied to the future gas
consumption. On the other hand, if the Company’s consumption is higher than the annual contract volume, the Company should pay the excess consumed natural gas at 130 of the applicable
price. This agreement is valid for 5 years.
In relation to the above agreement, on the same date, the Company entered into a gas transportation agreement with PT Rabana Wahana Consorindo Utama RWCU wherein RWCU
agreed to build and own the distribution and receiving facilities for natural gas from the tie-in point located at the Central Processing Plant in Bangadua to the Company’s natural gas receiving
facilities at Cirebon. The Company will pay gas transportation fee as compensation of US0.52 per MMBTU of natural gas delivered. This agreement shall remain valid in accordance with the natural
gas supply agreement between the Company and RGM. In 2005, total purchases of natural gas from RGM amounted to US554,229 equivalent to
Rp5,544,447,706, while total transportation fee incurred amounted to US153,297 equivalent to Rp1,417,029,349.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
45
22. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
