SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated 58

6. TRADE RECEIVABLES continued

General terms and conditions of lessor agreements are as follows: - Rental periods range from 1 to 10 years. - Lessee is required to pay 20 non-refundable rental down payment at the beginning of the rental period, while the remaining rental fees can be paid in installments over the lease term as agreed by both parties. - Lessee is required to pay service charge at certain rate per square meter sqm, which is billed and paid on a quarterly basis. - Lessee is required to pay promotion fees for promotion activities at a certain rate per sqm annually. - Lessee is required to pay rental security deposit equivalent to 1 month rental fee and 3 months’ service charge and pay telephone deposit at a certain rate per line. - Utility charges are determined based on the condition set by the lessor. - Penalty fee is 3 per month for any outstanding rental receivables and calculated from the due date. - Fit-out work is performed 4 weeks from the space handover date. The fit-out results must be appropriate with the concept design which was approved by the lessor. 7. OTHER RECEIVABLES This account consists of receivables from third parties, as follows: December 31, June 30, 2013 2012 2011 2010 Current other receivables Mantolli International Corporation Mantolli 16,044,845 14,605,691 17,832,375 17,500,253 Perhimpunan Penghuni Rumah Susun Hunian 1,157,928 978,240 82,781 4,060,165 PT Jakarta Cakratunggal Steel Mills - - - 55,892,247 Others 13,262,987 8,670,334 7,647,770 15,526,719 Total current other receivables 30,465,760 24,254,265 25,562,926 92,979,384 Non-current other receivables Mantolli - - 12,154,406 28,837,740 Total other receivables 30,465,760 24,254,265 37,717,332 121,817,124 The receivable from Mantolli is non-interest bearing and is collateralized by shares of stock of PT Jakartabaru Graha Permai JBGP owned by Mantolli. The Company has the right to take over the collateral if Mantolli is not able to pay the receivable. This receivable was initially due on December 18, 2009 but this date was extended to December 30, 2013 and is repayable in annual installments of Rp17,484,000 each starting from 2009, with the final installment being due on December 30, 2013. Based on the review of the status of the individual receivables at the end of the year, management believes that all other receivables are fully collectible. PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated 59

8. INVENTORIES

Inventories consist of: December 31, June 30, 2013 2012 2011 2010 Inventories available for sale Landplots 70,230,404 92,604,750 187,409,077 45,896,554 Shops 5,563,403 47,250,545 9,106,571 7,893,122 Houses 3,325,658 30,907,761 273,979,815 93,798,572 Apartments 344,347 344,347 344,347 3,300,128 Total inventories available for sale 79,463,812 171,107,403 470,839,810 150,888,376 Inventories under developmentconstruction Land 1,492,487,410 1,162,957,143 1,259,274,168 362,194,595 Buildings 1,673,116,758 1,251,815,891 864,120,453 787,765,111 Apartments 186,095,289 221,967,545 136,225,560 - Total inventories under developmentconstruction 3,351,699,457 2,636,740,579 2,259,620,181 1,149,959,706 Others 16,747,061 12,335,918 10,622,418 7,585,275 Total inventories 3,447,910,330 2,820,183,900 2,741,082,409 1,308,433,357 The movements in the buildings and apartments inventories under construction account are as follows: December 31, June 30, 2013 2012 2011 2010 Beginning balance 1,473,783,436 1,000,346,013 787,765,111 269,726,638 Production costs 761,417,232 1,411,399,988 1,213,624,983 1,058,500,800 Transfer to buildings inventories available for sale 375,988,622 937,962,565 1,001,044,081 540,462,327 Ending balance 1,859,212,046 1,473,783,436 1,000,346,013 787,765,111 The movements in the inventories shops, houses and apartments available for sale account are as follows: December 31, June 30, 2013 2012 2011 2010 Beginning balance: Shops 47,250,545 9,106,571 7,893,122 20,172,005 Houses 30,907,761 273,979,815 93,798,572 32,124,911 Apartments 344,347 344,347 3,300,128 - Transfer from building inventories under construction 375,988,622 937,962,565 1,001,044,081 540,462,327 Cost of sales: Houses 75,315,990 703,160,684 648,582,745 384,522,586 Shops 187,748,609 143,275,968 92,133,000 81,172,641 Apartments 182,193,268 296,453,993 2,955,782 22,072,194 Offices - - 78,933,643 - Ending balance 9,233,408 78,502,653 283,430,733 104,991,822