PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
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39. SIGNIFICANT AGREEMENTS AND COMMITMENTS continued
o. On February 16, 2012, PT Summarecon Property Development SPD entered into an agreement with PT Duta Putra Mahkota DPM, the 49 shareholder of PT Duta Sumara Abadi DSA, to
regulate the terms and conditions of the project agreement conducted by both parties. Under the agreement, both parties agreed to collaborate in developing 395 hectares of land located in
Bekasi. Both parties agreed that SPD has been appointed as the lead partner while still considering the involvement of DPM. Under the agreement, SPD is entitled to receive fees from
DSA, which are computed at certain formulas agreed by both parties. As of June 30, 2013 and December 31, 2012, no fees have been received by SPD.
p. Starting 2011, the Company and Subsidiaries entered into marketing agreements with certain property agents, whereby the Company and Subsidiaries agreed to pay certain commissions at
certain rates to the property agents if they are able to achieve the targeted sales within certain periods of time. Total sales commissions of property agents for sales recognized as of June 30,
2013 and 2012 and December 31, 2012 and 2011 amounted to Rp15,009,387, Rp42,857,595, Rp33,528,430 and Rp10,976,270, respectively, which are presented as part of “Selling Expenses”
in the consolidated statements of comprehensive income Note 32.
q. On October 21, 2010, the Company entered into a rental agreement with North Jakarta International School Foundation NJIS for a land property located in Kelapa Gading which was
used as a school. The rental was Rp5,000,000 per year. This agreement was valid from August 14, 2010 until June 30, 2011.
r. On June 30, 2010, PT Summerville Property Management SPM entered into a property management agreement with Perhimpunan Penghuni Rumah Susun Hunian The Summit Kelapa
Gading PP Summit, whereby PP Summit appointed SPM to provide property management services for The Summit Apartment. PP Summit agreed to pay monthly fee as compensation,
amounting to Rp25,000. This agreement is valid for 3 years from July 2010 to June 2013.
s. On January 12, 2010, the Company entered into a building construction and marketing agreement with PT Permata Cahaya Indah PCI, whereby the Company agreed to deliver monitoring and
marketing services for office buildings belonging to PCI located in Kelapa Gading. For these services, PCI agreed to pay the Company an annual management fee amounting to Rp1,200,000.
Subsequently, based on agreement between the Company and PCI dated January 7, 2013, the annual management fee is amended from Rp1,200,000 to become Rp600,000 and is paid semi-
annually, starting from June 30, 2013 to December 31, 2014.
t. On November 2, 2009, SHO entered into a Tradename and Trademark License Agreement with Harris International Hotels wherein SHO is authorized to use the name “Harris” for “Harris Hotel
Kelapa Gading”. SHO agreed to pay royalties as compensation in accordance with the terms of the agreement at rates up to a maximum of 1.50 of total revenues. This agreement is valid for
10 years. Starting May 2, 2010, the hotel has commenced its operations.
u. On November 2, 2009, the Company and SHO entered into a Hotel Management Consulting Agreement with PT Tauzia International Management Tauzia wherein Tauzia is engaged as sole
and exclusive advisor and consultant to supervise, direct, manage and control the operations of Harris Hotel Kelapa Gading. Tauzia is entitled to receive consultation fees as compensation
computed at rates of up to a maximum of 8 of gross operating profit as defined in the agreement. This agreement is valid for 10 years. Starting May 2, 2010, the hotel has commenced its
operations.
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
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39. SIGNIFICANT AGREEMENTS AND COMMITMENTS continued
v. On July 30, 2009, SCK entered into a joint operation, known as KSO Summarecon Lakeview KSO-SL, with TGS and LK. Under the terms of the agreement, the parties agreed to collaborate
to develop an area known as East Business Unit Land belonging to TGS. KSO-SL has been appointed as the sole party to develop, sell and manage the East Business Unit Land for a period
of 10 years until April 29, 2019. The parties agreed that the net profit of the joint operation shall be distributed to the parties in the following manner: 10 to TGS, 45 to LK and 45 to SCK.
However, loss from the KSO operations, if any, shall be borne by SCK and LK in their respective proportions. Subsequently, on March 17, 2010, the parties agreed to change the percentages of
profit sharing to become: 5 to TGS, 40 to LK and 55 to SCK.
w. The Company and SCK entered into agreements with each of BCA, OCBC, Permata, BII, Danamon, Mandiri, CIMB, Panin, UOB and BNI whereby these banks agreed to provide housing
and apartment loans to the customers of the Company and KSO Summarecon Serpong. The Company and SCK are required to provide collateral in the form of corporate guarantees and
time deposits to temporarily secure the customers’ loans until such time the Company and KSO Summarecon Serpong submit to the respective banks the related certificates of ownership of the
land and buildings purchased by the customers Note 14.
SCK entered into the above agreements on behalf of KSO Summarecon Serpong a joint operation Note 39x.
x. Based on notarial deed No. 39 dated July 21, 2004 of Dewi Himijati Tandika, S.H., SCK entered into a joint operation known as KSO Summarecon Serpong under an agreement with PT
Jakartabaru Cosmopolitan JBC. Under the agreement, both parties agreed to collaborate in developing 400 hectares of land belonging to JBC in Perumahan Gading Serpong Permai,
Tangerang. KSO Summarecon Serpong has been appointed as the only party which will plan, release, expand and operate the land, while SCK has been appointed to handle the management
of the joint operation and identify financing sources for its operations. Income or loss from operations will be distributed at 70 to SCK and 30 to JBC. This agreement is valid for a period
of 10 years until July 20, 2014.
The obligations of JBC in relation to this joint operation include the following, among others: • Provide land to be managed and developed by the parties in KSO Summarecon Serpong
• Take responsibility for solving disputes arising from the land development, if any • Provide the labor requirements of KSO Summarecon Serpong
• Permit SCK to utilize the location license owned by JBC and acquire land ownership over the
undeveloped land • Allow SCK to utilize infrastructure located on the land
• Assist SCK in obtaining the rights over the remaining land by signing the release of land ownership agreements with the individual land owners.
The obligations of SCK in relation to this joint operation include the following, among others: • Provide financing for land development
• Provide the labor requirements of KSO Summarecon Serpong • Acquire land ownership covered by the project.
