PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2011 AND DECEMBER 31, 2010 AND CONSOLIDATED COMPREHENSIF STATEMENTS OF INCOME FOR THE SIX MONTHS
PERIOD ENDED JUNE 30, 2011 AND 2010 Continued
- 56 - Under the agreement, the Company is not permitted to market these products in Indonesia
through other distributors without the approval from PT Sungai Budi. The credit term is three months after the delivery date. The selling price to PT Sungai Budi is determined based on
the average of PT Sungai Budi‟s selling price to customers less Rp 26.75 per kilogram. The selling price is subject to change anytime and is adjusted for inflation and increase in
prices of fuel.
In PT Sungai Budi‟s letter dated January 7, 1997, the Company obtained the approval to market some of the Company‟s products, such as laundry and bath soap in Indonesia,
through PT Budi Aneka Cemerlang which is domiciled in Tangerang. The distributorship agreement has been amended several times with respect to amendment
period and selling price. On December 30, 2009, an amendment was made to extend the validity of the distributorship
agreement until December 31, 2012. The most recent amendment on the selling price was made on December 3, 2010, wherein it
was agreed that the change in the selling price to PT Sungai Budi will be based on the
average of PT Sungai Budi‟s selling price to customers less Rp 220 per kilogram for coconut and palm cooking oil, and its derivative products, and less Rp 110 per kilogram for laundry
cream soap, laundry bar soap and bath soap.
14. Agreement on Building Rental
In May 1999, the Company and its subsidiaries entered into a rent agreement with Widarto, related party, for the use of the building space located in Bandar Lampung for 10 years until
May 3, 2019. The annual rental is Rp 48,800 thousand.
15. Use of the Logo “Sungai Budi”
Based on the agreement dated July 26, 1999, between PT Sungai Budi and The Company, PT Sungai Budi as the owner of the Logo “Sungai Budi”, granted a non-exclusive and non-
transferrable license to the Company to use the Logo. For such use, PT Sungai Budi will not require or receive any royalty or interest income from the Company. This agreement can be
terminated upon approval of both parties.
16. Agreement on Land usage of Menggala Project
In January 2006 and 2005, PT Budinusa Ciptawahana BNCW, a subsidiary, has signed an agreement with Oey Albert and Widarto for the use of land in Menggala, Tulang Bawang, for
an area approximately 27 hectares and 200 hectares, respectively. This land is used for orange plantation. BNCW will not be charged for any fee on the usage of land in Menggala.
17. Agreement on CPO Refinery
On September 1, 2010, the Company and PT Budi Nabati Perkasa BNP entered into a CPO processing agreement, wherein the Company will process the CPO owned by BNP into palm
derivative products such as olein, stearin, and palm fatty acid. For CPO processing, BNP shall pay the Company exclude Value Added Tax Rp 350 per kilogram for Olein CP 10 and
Rp 450 per kilogram for Olein CPO 6. This agreement is valid up to August 31, 2012.
PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2011 AND DECEMBER 31, 2010 AND CONSOLIDATED COMPREHENSIF STATEMENTS OF INCOME FOR THE SIX MONTHS
PERIOD ENDED JUNE 30, 2011 AND 2010 Continued
- 57 - 36. DERIVATIVE INSTRUMENTS
As of December 31, 2008, the Company has outstanding derivative contracts i.e. Callable Forwards and Target Redemption Forward with certain counterparties banks with a total notional
amount of US 347,000 thousand, i.e., PT Bank Danamon Indonesia Tbk, PT Bank Permata Tbk, Standard Chartered Bank Jakarta Branch SCB, and Citibank N.A. Jakarta Branch Citibank.
These derivative contracts have maturity dates between June 30, 2009 to June 20, 2010. The strike prices of these derivative instruments range from Rp 9,500
– Rp 10,177 per US 1. During 2009, the Company has settled outstanding notional amount of certain derivative contracts
amounting to US 230,000 thousand with PT Bank Danamon Indonesia Tbk, PT Bank Permata Tbk, and SCB. The settlement of the aforementioned derivative contracts resulted to net loss on
settlement of Rp 97,200,000 thousand which was included in t
he beginning balance “Retained Earnings” and “Other Payables” in 2009 consolidated financial statements Notes 22.
As of date of completion of the consolidated financial statements, the Company is still in negotiation process with respect to the settlement of the remaining outstanding derivative
contracts with notional amount of US 117,000 thousand. The Company estimates the settlement amount of these derivative contracts to be US 10,000 thousand and has recorded the estimated
losses on these derivative contracts amounting to US 10,000 thousand in the beginning balance
of “Retained Earnings” and “Other Current Liabilities” in the 2009 consolidated financial statements Notes 22.
37. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
