PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
51
24. LITIGATION
On February 24, 2004, Ati binti Sadim dkk “Plaintiffs”, who represented themselves as the heirs of the owners of land with an area of 2,665,044 square meters located in Cipulus and Pasir Kores, Lulut
Village - West Java, filed a lawsuit against the Company for alleged unfair practices employed by the Company in acquiring the aforementioned land, specifically for the following reasons:
·
The land price is too low and inappropriate.
·
The purchase price was determined only by the Company.
·
The Company did not involve the Plaintiffs in the land measurement process.
· The Company has not paid the price for land with an area of approximately 934,111 square meters
which it has taken possession. The total loss being claimed by the Plaintiffs due to their inability to use the land for a 30-year period
amounted to Rp41,103,585,000. Based on the decision of the District Court of Cibinong the “Court” dated August 16, 2004, the Court
rejected all of the above claims. The Plaintiffs submitted an appeal to the High Court of West Java. On March 22, 2005, the High Court of West Java confirmed the decision of the District Court of Cibinong to
reject all of the above claims. On June 27, 2005, the Plaintiffs submitted an appeal to the Supreme Court, and as of January 20, 2006 the independent auditors’ report date, the Supreme Court has not
yet rendered its decision.
25. ECONOMIC CONDITIONS
The operations of the Company and its Subsidiaries may be affected by future economic conditions in Indonesia that may contribute to volatility in currency values and negatively impact economic growth.
Economic improvements and sustained recovery are dependent upon several factors such as fiscal and monetary actions being undertaken by the Government and others, actions that are beyond the control
of the Company and its Subsidiaries.
26. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
As of December 31, 2005, the Company and Subsidiaries have monetary assets and liabilities denominated in foreign currencies as follows:
Equivalent in Rupiah January 20, 2006
December 31, 2005 Auditors Report Foreign Currency Balance Sheet Date
Date
Assets Related Parties
US 4,872,610
47,897,756,300 46,192,342,800
Third Parties US
57,555,252 565,768,127,160
545,623,788,960 JP¥
839,149,618 70,003,371,603
69,019,133,016 EUR
1,415,077 16,499,613,860
16,230,069,993 Total
700,168,868,923 677,065,334,769
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
52
26. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued
