PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
39
20. ESTIMATED LIABILITY FOR EMPLOYEE BENEFITS continued
The actuarial valuation was determined using the “Projected Unit Credit” method which considered the following assumptions:
Company Subsidiaries
Discount rate 10 in 2005 and 9 in 2004 10 in 2005 and 9 in 2004 Wage and salary increase 9 in 2005 and 8 in 2004 9 in 2005 and 8 in 2004
Retirement age 55 years
55 years Average employee turnover 1 for employees with ages from
2 - 5 for employees with 20 years old up to 54 years old
ages from 20 years old, decreasing linearly to
0 at age 45 Table of mortality Commissioner’s Standard
Commissioner’s Standard Ordinary 1980
Ordinary 1980 Disability
10 of the mortality rate 10 at the mortality rate
Provisions for employee benefits recognized in the consolidated statements of income for the six months ended June 30, 2005 and 2004 are as follows:
2005 2004
Current service costs 9,225,822,877
2,634,057,000 Interest costs
7,021,131,000 3,155,573,500
Amortization of past service costs and actuarial gains 3,860,697,000
2,594,477,824
Net employees’ benefits expenses 20,107,650,877
8,384,108,324
A reconciliation of estimated liability for employee benefits is as follows:
2005 2004
Present value of defined benefit obligation 160,980,529,901
136,393,558,071 Unamortized balance of the non-vested past service
costs 98,851,817,500
102,267,141,995 Actuarial loss
16,003,221,777 8,868,521,000
Translation liability -
591,204,000 Liability should be recognized in consolidated
balance sheets 46,125,490,624
25,849,099,076 Current maturity of estimated liability for employee
benefits 6,214,292,069
3,580,283,310
Long-term portion 39,911,198,555
22,268,815,766
Movements in the estimated liability for employee benefits are as follows:
2005 2004
Balance at beginning of period 33,647,515,723
17,740,633,181 Provision during the period
20,107,650,877 8,384,108,324
Payment during the period 7,629,675,976
275,642,429
Balance at end of period recorded as part of
“Long-term Liabilities - Others” account in the
consolidated balance sheets 46,125,490,624
25,849,099,076
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
40
20. ESTIMATED LIABILITY FOR EMPLOYEE BENEFITS continued
