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
69
13. INVESTMENT PROPERTIES continued
2012 continued Balance as of
Balance as of December 31, 2011
Additions Deductions
Reclassifications December 31, 2012
2012 Movements continued
Accumulated depreciation
Buildings and infrastructures 287,828,427
42,719,929 446,264
3,978 330,106,070
Hotel facilities 17,110,682
10,782,253 -
- 27,892,935
Machinery and heavy equipment
103,200,932 30,609,749
4,540 119,485
133,925,626 Furniture and
office equipment 70,366
174,121 -
- 244,487
Total accumulated depreciation
408,210,407 84,286,052
450,804 123,463
492,169,118
Net book value 1,925,426,080
2,549,918,696 2011
Balance as of Balance as of
December 31, 2010 Additions
Deductions Reclassifications
December 31, 2011
2011 Movements
Cost
Land 411,027,113
7,947,010 -
1,246,285 420,220,408
Buildings and infrastructures 990,100,753
427,078,284 2,346,591
137,001,071 1,551,833,517
Hotel facilities -
13,857,998 -
40,426,603 54,284,601
Machinery and heavy equipment
186,009,967 25,164,298
2,082,554 64,737,812
273,829,523 Furniture and
office equipment -
- -
864,266 864,266
1,587,137,833 474,047,590
4,429,145 244,276,037
2,301,032,315 Construction in progress
- 35,414,580
389,782 2,420,626
32,604,172 Total cost
1,587,137,833 509,462,170
4,818,927 241,855,411
2,333,636,487
Accumulated depreciation
Buildings and infrastructures 235,346,963
28,451,092 157,866
24,188,238 287,828,427
Hotel facilities -
11,122,715 -
5,987,967 17,110,682
Machinery and heavy equipment
73,401,673 25,000,870
553,191 5,351,580
103,200,932 Furniture and
office equipment -
- -
70,366 70,366
Total accumulated depreciation
308,748,636 64,574,677
711,057 35,598,151
408,210,407
Net book value 1,278,389,197
1,925,426,080
consists of sales and disposals
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
70
13. INVESTMENT PROPERTIES continued
2010 Balance as of
Balance as of December 31, 2009
Additions Deductions
Reclassifications December 31, 2010
2010 Movements
Cost
Land 410,490,356
536,757 -
- 411,027,113
Buildings and infrastructures 920,257,717
12,458,415 -
57,384,621 990,100,753
Hotel facilities -
- -
- -
Machinery and heavy equipment
171,558,023 5,817,886
- 8,634,058
186,009,967 Total cost
1,502,306,096 18,813,058
- 66,018,679
1,587,137,833
Accumulated depreciation
Buildings and infrastructures 212,510,276
23,060,196 -
223,509 235,346,963
Hotel facilities -
- -
- -
Machinery and heavy equipment
55,772,919 17,628,754
- -
73,401,673 Total accumulated
depreciation 268,283,195
40,688,950 -
223,509 308,748,636
Net book value 1,234,022,901
1,278,389,197
Depreciation for the six-month period ended June 30, 2013 and 2012 and years ended December 31, 2012, 2011 and 2010 was charged to the following accounts:
Six-Month Periods Ended June 30,
Years Ended December 31, 2012
2013 unaudited
2012 2011
2010
Cost of sales and direct costs 41,788,080
36,285,895 81,356,719
63,367,254 40,688,950
General and administrative expenses Note 32
672,574 5,113,483
2,929,333 1,207,423
-
Total depreciation 42,460,654
41,399,378 84,286,052
64,574,677 40,688,950
The details of sales of investment properties are as follows:
Year Ended December 31, 2011
_____
Cost 1,569,444
Accumulated depreciation 629,779
Net book value 939,665
Selling price 36,015
Loss on sales of investment properties - net 903,650
As of June 30, 2013 and December 31, 2012 and 2011, the Company disposed certain of its investment properties with net book value of Rp317,254, Rp42,634 and Rp3,168,205, respectively.
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
71
13. INVESTMENT PROPERTIES continued
Reclassifications of cost represent reclassifications from construction in progress to the appropriate completed investment properties amounting to Rp526,183,067, Rp6,213,099 and Rp7,975,685 as of
June 30, 2013 and December 31, 2012 and 2011, respectively. As of June 30, 2013 and December 31, 2012, the reclassification to investment properties from
inventories with net book value amounting to Rp4,494,968 and Rp22,258,286, respectively, was due to the change in management’s intention in using the related assets Note 8.
In 2012, the reclassification to investment properties from undeveloped land with acquisition cost amounting to Rp3,701,938 was due to the change in management’s intention in using the related
assets Note 10. As of June 30, 2013 and December 31, 2011, the reclassification of investment properties with net
book value amounting to Rp20,023,542 and Rp151,341, respectively, to fixed assets was due to the change in management’s intention in using the related assets Note 12.
As of June 30, 2013 and December 31, 2011, the reclassification of investment properties with net book value amounting to Rp141,099,458 and Rp3,795,859, respectively, to inventories was due to the
change in management’s intention in using the related assets Note 8. The details of construction in progress as of June 30, 2013 and December 31, 2012, 2011 and 2010
are as follows:
2013 2012
Percentage of Percentage of
Project Amount
completion Amount
completion
Scientia Business Park 56,929,628
90.00 5,712,757
60.00 Summarecon Digital Centre
51,199,194 31.24
8,759,657 0.00
Harris Hotel Summarecon Bekasi 46,644,283
35.62 9,360,955
2.08 Movenpick Resort Spa, Jimbaran, Bali
21,625,576 2.89
14,451,774 2.89
The Springs Club 21,594,636
28.00 8,018,555
15.00 Pop Hotel Kelapa Gading
18,152,342 14.54
2,539,969 1.10
Genset Mall Kelapa Gading 3,644,190
81,79 -
- Plaza Summarecon Bekasi
2,136,121 25.95
- -
Summarecon Mal Bekasi -
- 328,543,795
55.00 Sinpasa Commercial Bekasi
- -
17,892,501 99.70
Summarecon Mal Serpong -
- 11,369,533
91.96 Gas Station Bekasi
- -
6,010,881 93.81
Gas Station Kelapa Gading -
- 4,535,636
63.18 Pasar Sinpasa Bekasi
- -
2,222,042 65.31
Mal Kelapa Gading -
- 2,150,316
70.00 Others
6,931,230 -
7,223,819 -
Total construction in progress 228,857,200
428,792,190 2011
2010 Percentage of
Percentage of Project
Amount completion
Amount completion
Summarecon Mal Bekasi 16,413,020
3.00 -
- Chiller Harris Hotel Kelapa Gading
5,578,651 90.00
- -
The Springs Club 2,849,076
5.00 -
- Others
7,763,425 -
-
Total construction in progress 32,604,172
-
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
72
13. INVESTMENT PROPERTIES continued
Below are the estimated completion dates of the construction in progress as of June 30, 2013:
Estimated Completion Dates
Scientia Business Park March 2014
Summarecon Digital Centre March 2014
Harris Hotel Summarecon Bekasi September 2014
Movenpick Resort Spa, Jimbaran, Bali March 2015
The Springs Club March 2014
Pop Hotel Kelapa Gading August 2014
Genset Mal Kelapa Gading August - September 2014
Plaza Summarecon Bekasi September 2014
The percentages of completion of the construction in progress as of June 30, 2013 and December 31, 2012, 2011 and 2010 are based on the actual expenditures incurred compared to the total budgeted
project cost.
For the six-month period ended June 30, 2013 and years ended December 31, 2012 and 2011, interest capitalized to investment properties amounted to Rp4,513,108, Rp732,292 and Rp8,515,745,
respectively.
As of June 30, 2013, investment properties, except land with net book value of Rp1,460,770,863, are covered by insurance against fire, flood and other risks all-risks under blanket policies with several
companies, including PT KSK Insurance Indonesia, PT Asuransi Jasa Tania, PT Lippo General Insurance, PT Meritz Korindo Hanjin Insurance, PT Reguard General Insurance, PT Zurich Insurance
Indonesia, PT Asuransi Himalaya Pelindung, PT Asuransi Central Asia, PT Asuransi Allianz Utama Indonesia, PT Asuransi Adira Dinamika, PT China Taiping Insurance Indonesia, PT Asuransi
Rama Satria Wibawa, PT Kurnia Insurance Indonesia, PT Asuransi Umum Mega, PT Asuransi Indrapura, PT Tugu Kresna Pratama, PT Asuransi AXA Indonesia, PT Asuransi MSIG Indonesia and
PT ACE INA Insurance, all third parties, for US4,797,058,950 and Rp548,497,775. As of June 30, 2013, the Company and Subsidiaries also covered their investment properties by
insurance against terrorism and sabotage for US6,821,806,000 and Rp589,700,000. In addition, the Company and Subsidiaries also obtained insurance against business interruption amounting to
Rp693,973,000 as of June 30, 2013. The Company and Subsidiaries’ management is of the opinion that the above coverages are adequate to cover possible losses arising from such risks.
As of June 30, 2013 and December 31, 2012, 2011 and 2010, investment properties with net book value of Rp1,750,306,009, Rp1,519,485,639, Rp1,330,421,293 and Rp951,467,022, respectively, are
pledged as collateral for the loans from banks and financing institutions and obligations under finance lease Notes 15 and 16.
The fair value of the investment properties as of June 30, 2013 and December 31, 2012 and 2011 amounted to Rp6,507,712,630, Rp6,160,587,224 and Rp5,015,178,061, respectively, which was
determined partly by independent appraisers KJPP Hendra Gunawan and Partners based on its reports dated March 30, 2012 for June 30, 2013 and December 31, 2012, and May 13, 2011 for
December 31, 2011, and partly based on the Tax Offices sales value of tax object NJOP for each year.