SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued w. Financial instruments continued

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 63

11. ADVANCE PAYMENTS

This account consists of advances for: December 31, June 30, 2013 2012 2011 2010 Current advance payments: Related party Note 34 Purchase of land 1,699,356 - - - Third party Purchase of : Land Notes 39b,39d,39e and 39f 192,481,970 125,900,934 104,083,994 313,273,186 Construction materials 90,713,602 95,132,843 97,252,540 147,399,576 Fixed assets 488,936 763,794 1,069,919 1,468,548 Investment Note 1f for 2011, Note 39c for 2012 and 2013 159,672,838 106,448,559 150,062,000 - Sales commission Note 39p 22,098,466 22,933,756 10,681,506 - Others 5,194,688 6,639,282 10,849,416 6,796,115 Total current advance payments 472,349,856 357,819,168 373,999,375 468,937,425 Non-current advance payments: Third party Purchase of: Land 216,129,835 143,169,864 - - Construction materials 63,103,414 58,501,801 - - Fixed assets 339,833 1,052,732 - - Sales commission Note 39p 31,075,393 23,765,493 - - Investment 7,166,822 7,166,822 7,166,822 2,166,822 Others 31,978,303 23,893,139 - - Total non-current advance payments 349,793,600 257,549,851 7,166,822 2,166,822 Total advance payments 822,143,456 615,369,019 381,166,197 471,104,247 12. FIXED ASSETS The details of fixed assets are as follows: 2013 Balance as of Balance as of December 31, 2012 Additions Deductions Reclassifications June 30, 2013 2013 Movements Cost Direct Ownership Land 18,110,895 375,075 - 2,143,743 20,629,713 Buildings and infrastructures 221,179,208 3,427,731 12,112,930 10,993,842 223,487,851 Machinery and heavy equipment 17,196,876 1,035,658 - 4,872,228 23,104,762 Vehicles 66,943,478 10,243,427 984,260 - 76,202,645 Furniture and office equipment 164,335,506 26,117,927 52,105 4,016,589 194,417,917 Sub-total 487,765,963 41,199,818 13,149,295 22,026,402 537,842,888 Construction in progress 11,885,803 40.232,465 - 2,048,676 50,069,592 Sub-total 499,651,766 81,432,283 13,149,295 19,977,726 587,912,480 Assets under Finance Lease Vehicles - 327,074 - - 327,074 Total cost 499,651,766 81,759,357 13,149,295 19,977,726 588,239,554 consists of sales and disposals