SIGNIFICANT BALANCES PERSEDIAAN INVENTORIES

PT KRAKATAU STEEL PERSERO Tbk dan Entitas Anaknya CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN INTERIM 30 September 2014 Disajikan dalam ribuan Dolar AS dan dalam jutaan Rupiah, Kecuali Dinyatakan Lain PT KRAKATAU STEEL PERSERO Tbk and Its Subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS September 30, 2014 Expressed in thousands of US Dollar and in millions of Rupiah, Unless Otherwise Stated 66 10. PERSEDIAAN lanjutan 10. INVENTORIES continued Perubahan penyisihan penurunan nilai persediaan dan persediaan usang adalah sebagai berikut: The changes in the allowance for decline in value of inventory and inventory obsolescence are as follows: 30092014 31122013 Saldo awal 14.066 10.510 Beginning balance Penambahan penyisihan 2.045 8.795 Additional provision Pemulihan penyisihan 4.075 5.239 Recovery of allowances Lain-lain - - Others Saldo akhir 12.036 14.066 Ending balance Pada tanggal 30 September 2014 dan 31 Desember 2013, Perusahaan dan Entitas Anak melakukan tambahan penyisihan penurunan nilai persediaan barang jadi masing-masing sebesar US2.045 dan US8.692 karena nilai tercatat persediaan tersebut lebih tinggi dibandingkan nilai realisasi neto. Pada tanggal-tanggal 30 September 2014 dan 31 Desember 2013, saldo penyisihan penurunan nilai persediaan masing-masing sebesar US3.726 dan US9.598. Pemulihan nilai persediaan merupakan realisasi atas penjualan dan atau pemakaian persediaan yang bersangkutan. As of September 30, 2014 and December 31, 2013, the Company and Subsidiaries made additional provision for decline in value of inventory for finished goods amounting to US2,045 and US8,692, respectively, since the carrying value of such inventories were higher than the net realizable value. As of September 30, 2014 and December 31, 2013, the balance of allowance for decline in value of inventory amounted to US3,726 dan US9,598, respectively. The recovery of the value of the inventories represents sale andor usage of such inventories. Persediaan Perusahaan dan Entitas Anak tertentu digunakan sebagai jaminan atas fasilitas pinjaman yang diperoleh dari kreditur Catatan 15 dan 21. The inventories of the Company and certain Subsidiaries are pledged as collateral to the loan facilities obtained from creditors Notes 15 and 21. Berdasarkan hasil penelaahan atas nilai realisasi neto persediaan dan keadaan fisik persediaan pada 30 September 2014, manajemen Perusahaan dan Entitas Anak berpendapat bahwa penyisihan atas penurunan nilai persediaan dan persediaan usang adalah cukup untuk menutupi kemungkinan kerugian yang timbul dari kondisi-kondisi tersebut. Based on the review of the net realizable value of inventories and physical condition of inventories as of September 30, 2014, the management of the Company and Subsidiaries is of the opinion that the allowances for decline in value of inventory and inventory obsolescence are adequate to cover possible losses arising from such conditions. Pada tanggal 30 September 2014, persediaan Perusahaan dan Entitas Anak, kecuali steel scrap, steel billets dan steel slabs, diasuransikan terhadap risiko kebakaran dan risiko lainnya berdasarkan suatu paket polis tertentu bersama-sama dengan aset tetap Perusahaan dan Entitas Anak Catatan 13. Manajemen Perusahaan dan Entitas Anak berpendapat bahwa nilai pertanggungan cukup untuk menutupi kemungkinan kerugian yang timbul dari risiko-risiko tersebut. As of September 30, 2014 , the Company‟s and Subsidiaries‟ inventories, except for steel scrap, steel billets and steel slabs, are covered by insurance against fire and other risks under certain blanket policies together with the Company‟s and Subsidiaries‟ fixed assets Note 13. The management of the Company and Subsidiaries is of the opinion that the sums insured are adequate to cover possible losses that may arise from such risks. PT KRAKATAU STEEL PERSERO Tbk dan Entitas Anaknya CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN INTERIM 30 September 2014 Disajikan dalam ribuan Dolar AS dan dalam jutaan Rupiah, Kecuali Dinyatakan Lain PT KRAKATAU STEEL PERSERO Tbk and Its Subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS September 30, 2014 Expressed in thousands of US Dollar and in millions of Rupiah, Unless Otherwise Stated 67 11. UANG MUKA DAN BIAYA DIBAYAR DI MUKA 11. ADVANCES AND PREPAID EXPENSES Akun ini terdiri dari: This account consists of: 30092014 31122013 Biaya dibayar dimuka - pekerjaan dalam penyelesaian 32.032 19.525 Prepaid expenses - Work in progress Uang muka 16.098 11.648 Advances to payments Asuransi 3.329 2.453 Insurance Lain-lain 12.827 1.889 Other Total 64.285 35.515 Total Biaya dibayar di muka - pekerjaan dalam penyelesaian merupakan biaya yang dikeluarkan oleh PT KE, Entitas Anak yang bergerak di bidang rekayasa dan konstruksi, yang akan dibebankan ke beban pokok pendapatan sesuai dengan persentase penyelesaian kontrak konstruksi. Prepaid expenses - work in progress represent costs incurred by PT KE, a Subsidiary engaged in the construction and engineering, which will be charged to cost of revenues based on percentage of completion of the construction contract. Uang muka terutama terdiri dari uang muka proyek yang dibayar oleh PT KE kepada subkontraktor dan pimpinan proyek sehubungan dengan pelaksanaan pekerjaan proyek. Advance payments mainly represent project advances paid by PT KE to sub-contractors and project leaders in relation to the performance of project work. 12. PENYERTAAN SAHAM 12. INVESTMENTS IN SHARES OF STOCK Akun ini terdiri dari: This account consists of: Metode ekuitas Equity method PT Krakatau Posco 30,00 276.500 19.800 48.718 - 247.582 EliminasiElimination 54.165 - - 54.165 222.335 19.800 48.718 - 193.417 PT Pelat Timah Nusantara Tbk 20,10 9.652 - 681 21 8.950 PT Kerismas Witikco Makmur 29,31 6.240 - 870 - 5.370 PT Krakatau Prima Dharma Sentana 25,00 12 - 2 - 10 PT Krakatau Posco Chemtech - Calcination 20,00 2.911 - 255 - 3.166 PT Indo japan Steel Center 20,00 1.423 - 666 - 2.089 PT Krakatau Osaka Steel 20,00 3.675 - - - 3.675 EliminasiElimination 3.675 - - - 3.675 - - - - - PT Krakatau Nippon Steel Sumikin 20,00 3.528 3.912 - - 7.440 EliminasiElimination 3.528 - - - 3.528 - - - - 3.912 PT Krakatau Posco Chemtech Dongsuh Chemical 30,00 1.879 - 192 - 1.687 PT Krakatau Blue Water 33,00 79 - - - 79 PT Krakatau Samator 24,00 234 167 3 - 398 PT Krakatau Daedong Machinery 30,00 826 - 111 - 937 PT Krakatau Agro Logistics 48,00 1.065 - 516 - 1.581 Joint Operation CWCAEC KHI-PCI - 3.118 - - 3.118 PT Krakatau Semen Indonesia 50,00 1.531 1.519 - - 3.050 EliminasiElimination 1.531 789 - - 2.320 - 730 - - 730 PT Wijaya Karya Beton 30,00 332 915 - - 1.247 EliminasiElimination - - - - - 332 915 - - 1.247 Total metode ekuitas 246.988 28.642 48.917 21 226.691 Total equity methode Metode biaya perolehan Cost method PT Maleo Emtiga 51,64 5.211 - - - 5.211 PT Seamless Pipe Indonesia Jaya 2,19 1.091 - - - 1.091 South Australian Steel and Energy 6,67 610 - - - 610 PT Marga Mandala Sakti 0,47 71 - - - 71 PT Metbelosa 15,00 48 - - - 48 PT Indonesia Asri Refractories 10,00 22 - - - 22 PT Krakatau Posco Power 10,00 8.310 8.310 Total metode biaya perolehan 15.363 - - - 15.363 Total cost methode Penyisihan penurunan nilai investasi Allowances for decline in value of investment 6.934 6.934 Neto Net 255.417 28.642 48.917 21 235.120 30 September 2014 September 30, 2014 Persentase kepemilikan Percentage of ownership Nilai tercatat 1 Januari 2014 Carrying value January 1, 2014 Penambahan Additions Bagian laba rugi Share in profit loss dan Penyesuaian translasi Translation adjustment Dividen kas Cash dividends Nilai tercatat 30 September 2014 Carrying value September 30, 2014