PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and for the Six-Month Periods Then Ended Expressed in thousands of Indonesian Rupiah, unless otherwise stated
44
10. INVESTMENT PROPERTIES CONTINUED
As of June 30, 2017 and December 31, 2016, the reclassifications of investment properties with net book value amounting to RpNil and Rp574,788, respectively, to inventories was due to the change in management’s intention on the
use of the related assets Note 6.
The details of construction in progress are as follows: June 30, 2017
December 31, 2016 Project
Total Percentage of
completion Total
Percentage of completion
Movenpick Resort Spa, Jimbaran, Bali 59,718,370
22,148,135 92.00
Wedding Hall 26,141,191
6,216,861 63.00
Others 38,455,989
24,552,065 -
Total construction in progress 124,315,550
52,917,061
Below are the estimated completion dates of the projects under construction in progress as of June 30, 2017:
Estimated Completion Dates
Wedding Hall July 2017
The percentages of completion of the construction in progress are based on the actual expenditures incurred compared to the total budgeted project cost.
As of June 30, 2017, borrowing cost capitalized to investment properties amounted to RpNil 2016: Rp18,098,384. As of June 30, 2017, investment properties, except land, are covered by insurance against fire, flood, and other risks all
risk under blanket policies with several companies, including PT Asuransi Allianz Utama Indonesia, PT Asuransi AXA Indonesia, PT Zurich Insurance Indonesia, PT Asuransi Central Asia, PT Asuransi Indrapura, PT ACE Jaya Proteksi, PT
Asuransi Rama Satria Wibawa, PT Asuransi Asoka Mas, PT Asuransi Ekspor Indonesia and PT Asuransi Astra Buana, all third parties, with sum insured amounted US498,982,358 and Rp745,811,956.
As of June 30, 2017, the Group also covered its investment properties by insurance against terrorism and sabotage for US280,368,997 and Rp796,100,000. In addition, the Group also obtained insurance against business interruption
amounting to US35,100,000 and Rp1,264,850,000. the Group’s management is of the opinion that the above coverages are adequate to cover possible losses arising from such risks.
As of June 30, 2017, investment properties with net book value of Rp2,545,760,567 2016: Rp2,657,751,587 are pledged as collateral for the loans from banks and financing institutions, bonds payable and sukuk ijarah Notes 12 and 13.
The fair value of the investment properties as of June 30, 2017 amounted to Rp16,569,221,125, which was determined by independent appraisers KJPP Hendra Gunawan and Partners in its report dated May 23, 2014.
Rental income from investment properties recognized in the consolidated statement of comprehensive income as of June 30, 2017 amounted to Rp652,942,771 2016: Rp632,696,947 Note 26.
Based on the Group’s assessments, there were no events or changes in circumstances which indicated an impairment in the value of investment properties as of June 30, 2017.
PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and for the Six-Month Periods Then Ended Expressed in thousands of Indonesian Rupiah, unless otherwise stated
45
11. OTHER FINANCIAL ASSETS
