PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
23
8. FIXED ASSETS continued
Balance as of Additions
Disposals Balance as of
December 31, 2004 Reclassifications Reclassifications
June 30, 2005
_________________________
Assets under capital lease
Machinery and equipment 45,814,780
22,907,390 -
68,722,170 Transportation equipment
845,863,100 726,434,914
- 1,572,298,014
Sub-total 891,677,880
749,342,304 -
1,641,020,184
_________________________
Total Accumulated Depreciation, Amortization and Depletion
3,390,873,271,384 231,813,012,416
3,813,519,336 3,618,872,764,464
Net Book Value 7,761,254,118,072
7,589,639,017,376
Construction in progress consists of:
2006 2005
Machineries under installation 167,568,044,795
81,899,414,168 Buildings and structures under construction
2,797,851,688 13,304,315,765
Others 12,993,381,706
12,955,289,621
Total 183,359,278,189
108,159,019,554
Below are the percentages of completion and estimated completion periods of the construction in progress as of June 30, 2006:
Estimated Percentage Estimated Completion of Completion
Period Machineries under installation
8 - 97 1 to 24 months
Buildings and structures under construction 25 - 95
3 to 24 months Others
3 - 95 1 to 24 months
The unpaid balances to contractors and suppliers for the construction, purchase, repairs and maintenance of fixed assets amounting to Rp3,699,619,215 and Rp1,228,740,282 as of June 30, 2006
and 2005, respectively, are presented as part of “Other Payables to Third Parties” in the consolidated balance sheets.
In November 2005, the Company received a decision letter from the Tax Office which approved the revaluation of certain machinery and transportation equipment. The increment of Rp229,970,296,236,
which is net of deferred tax effect amounting to Rp98,558,698,385, between the revalued amount and the net book value of these fixed assets was recognized as revaluation increment in fixed assets, which
is presented in the shareholders’ equity section of the 2006 consolidated balance sheet, while the difference of Rp430,904,292,854 between the revalued amount and the fiscal book value was
compensated against the Company’s tax loss carryforward.
Fixed assets are used as collateral to secure the long-term loans from banks and financial institutions see Note 11.
Depreciation, amortization and depletion charges amounted to Rp253,364,159,971 and Rp231,813,012,416 for the six months ended June 30, 2006 and 2005, 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
Rp220,337,322,404 and US2,677,810,480 as of June 30, 2006. In management’s opinion, the above insurance coverage is adequate to cover any possible losses that may arise from such risks.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
24
8. FIXED ASSETS continued
