UNDEVELOPED LAND continued SMRA Interim Acc - Q2 2012 Eng

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and For the period of six months ended 30 June 2012 and 2011 unaudited Expressed in thousand of rupiah, unless otherwise stated 42 Depreciation for the periods ended 30 June was charged to the following: 2012 2011 General and administrative expenses 12,616,461 63,367,254 Cost of sales and direct costs 28,964,243 1,207,423 Total 41,580,704 64,574,677 In 2011, the Company disposed certain of its investment properties with net book value of Rp3,168,205. The details of construction in progress as of 30 June 2012 and 31 December 2011 are as follows: 30 June 2012 31 December 2011 Amount Percentage of completion Amount Percentage of completion Summarecon Mal Bekasi 148,949,613 16 16,413,020 3 Chiller hotel - - 5,578,651 90 Others 16,821,228 10,612,501 Total construction in progress 165,770,841 32,604,172 The percentages of completion of the construction in progress as of 30 June 2012 and 31 December 2011 are based on the actual expenditures incurred compared to the total budgeted project cost. Investment properties, except land, are covered by insurance against fire, flood and other risks all-risks under blanket policies with several companies, including 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 Asuransi MSIG Indonesia and PT ACE INA Insurance, all third parties, for US238,417,700 and Rp51,600,000 in 2012 and 2011.The Company and Subsidiaries also covered their investment properties by insurance against terrorism and sabotage for US186,632,087 and Rp469,000,000 in 2012 and 2011 SH, a Subsidiary, also covered its investment properties by insurance against terrorism and sabotage for US15,000,000 in 2012 and 2011. In addition, the Company and Subsidiaries also obtained insurance against business interruption amounting to Rp453,895,000 in 2012 and 2011, respectively. 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 30 June 2012 and 31 December 2011 investment properties with net book value of Rp,1,224,537,914 and Rp1,330,421,293, respectively, are pledged as collateral for the loans from banks and financing institution, bonds payable and s ukuk ijarah Notes 15 and 16. The fair value of the investment properties amounted to Rp5,015,178,061 in 2012 and 2011, of which Rp3,555,426,040 was determined partly by independent appraisers and partly based on the Tax Offices sale value of tax object NJOP as of 30 June 2012 and 31 December 2011. Rental income from investment properties recognized in the consolidated statements of comprehensive income amounted to Rp346,233,000 and Rp266,006,262 in 2012 and 2011, respectively Note 29. Based on the Company and Subsidiaries’ assessments, there were no events or changes in circumstances which indicated an impairment in the value of investment properties as of 30 June 2012 and 2011.