PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
40
20. ESTIMATED LIABILITY FOR EMPLOYEE BENEFITS continued
The plan’s assets are administered by Dana Pensiun Karyawan Indocement Tunggal Prakarsa, the establishment of which was approved by the Ministry of Finance on November 12, 1991,
as amended by Decree No. Kep-332KM.171994 dated December 1, 1994. As of September 30, 2005 and 2004, the Plan assets totaled Rp379.9 billion and Rp341.1 billion, respectively.
The Company and Subsidiaries have appointed PT Watson Wyatt Purbajaga WWP, an independent actuary, to calculate the expected obligation for post-employment, severance, gratuity and
compensation benefits of its qualified permanent.
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 nine months ended September 30, 2005 and 2004 are as follows:
2005 2004
Current service costs 7,342,987,450
3,951,085,500 Interest costs
10,817,004,000 4,733,360,250
Amortization of past service costs and actuarial gains 5,898,121,500
3,790,834,127
Net employees’ benefits expenses 24,058,112,950
12,475,279,877
A reconciliation of estimated liability for employee benefits is as follows:
2005 2004
Present value of defined benefit obligation 158,426,145,530
139,176,007,426 Unamortized balance of the non-vested past service
costs 96,844,223,250
101,070,785,989 Actuarial loss
15,973,391,527 8,868,520,703
Translation liability -
591,204,000 Liability should be recognized in consolidated
balance sheets 45,608,530,753
29,827,904,734 Current maturity of estimated liability for employee
benefits 6,214,292,069
3,580,283,310
Long-term portion 39,394,238,684
26,247,621,424
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
41
20. ESTIMATED LIABILITY FOR EMPLOYEE BENEFITS continued
