PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2016 unaudited and December 31, 2015 audited and For the period of six months ended June 30, 2016 and 2015 unaudited
Expressed in thousands of Indonesian Rupiah, unless otherwise stated
44
8. PREPAID EXPENSES
This account consists of prepayments to third parties for:
June 30, 2016 December 31, 2015
Advertising 38,453,846
14,758,645 Debt transaction cost
7,904,823 7,104,184
Land and building tax 6,286,841
- Insurance
5,444,928 6,859,904
Parking 2,077,900
1,825,475 Others
10,409,915 4,583,764
Total prepaid expenses 70,578,253
35,131,972 9. UNDEVELOPED
LAND
The details of undeveloped land are as follows:
June 30, 2016 December 31, 2015
Location Area m
2
Amount Area m
2
Amount
Summarecon Bandung
3,344,691 1,584,203,520
3,394,927 1,569,894,595
Summarecon Serpong
3,102,097 991,702,004
3,081,813 942,590,498
Summarecon Bekasi
4,034,106 972,295,462
4,030,235 964,132,733
Summarecon Karawang
318,173 386,212,986
317,830 383,464,725
Bogor 4,149,846
756,764,808 4,147,799
755,109,926 Makassar
3,222,870 716,409,738
2,110,407 543,046,003
Others 2,093,341
714,737,096 2,405,192
579,205,224
Total undeveloped land 20,265,124
6,122,325,614 19,170,373 5,737,443,704
The status of ownership of undeveloped land is as follows:
June 30, 2016 December 31, 2015
Status Area m
2
Area m
2
Land certificates already issued 8,937,349 7,873,270
Released rights
10,647,329 10,763,006
In the process of releasing rights 680,446
534,097
Total 20,265,124
19,170,373
Management believes that there will be no issue in obtaining the land certificates and the extension of the land rights since all the land were legally acquired and supported by sufficient evidence of ownership.
As of June 30, 2016, undeveloped land with total area 442,822 m
2
with carrying value amounted Rp41,470,708 are used as collateral for loans from banks, undeveloped land with total area 219,300 m
2
with carrying value amounted Rp20,623,766 are used as collateral for “Obligasi Berkelanjutan I Phase III Note 15.
No borrowing costs have been capitalized to undeveloped land as of June 30, 2016 and 2015. As of June 30, 2016, the reclassification from investment properties to undeveloped land amounting to Rp570,823 was
due to the change in management’s intention on the use of the related assets Note 12.
PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2016 unaudited and December 31, 2015 audited and For the period of six months ended June 30, 2016 and 2015 unaudited
Expressed in thousands of Indonesian Rupiah, unless otherwise stated
45
10. ADVANCE PAYMENTS
