PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2006 With comparative figures for 2005
Expressed in rupiah, unless otherwise stated
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7. LONG-TERM INVESTMENTS AND ADVANCES TO ASSOCIATED COMPANY continued
The principal activities of the above investees are as follows:
Investee Country of Domicile
Principal Business Activity Stillwater Shipping Corporation
Liberia Shipping
PT Cibinong Center Industrial Estate Indonesia
Development of industrial estates PT Pama Indo Mining
Indonesia Mining
PT Indo Clean Set Cement Indonesia
Production of clean set cement
The details of the equity in net earnings of associated companies, net of goodwill amortization, for the years ended December 31, 2006 and 2005 are as follows:
2006 2005
Stillwater Shipping Corporation 5,934,060,720
11,231,810,109 PT Pama Indo Mining
2,805,446,256 1,860,874,187
PT Cibinong Center Industrial Estate 946,873,554
4,953,633,930
Total 9,686,380,530
18,046,318,226
Based on the minutes of the shareholders’ extraordinary meeting of PT Cibinong Center Industrial Estate CCIE held on September 19, 2005, which were covered by notarial deed No. 7 of Notary
Popie Savitri Martosuhardjo Pharmanto, S.H. of the same date, the shareholders of CCIE agreed to reduce its issued and paid-up capital from Rp73,248,000,000 to Rp60,048,000,000. As a result, the
Company’s investment in CCIE was reduced by its proportionate share of Rp6,600,000,000.
The Company and Subsidiaries received cash dividends from PT Pama Indo Mining amounting to Rp2,099,307,170 in 2006 and Rp2,267,602,055 in 2005, and from Stillwater Shipping Corporation
amounting to US1,000,000 equivalent to Rp10,240,000,000 excluding foreign exchange gain amounting to Rp70 million in 2005.
Based on the minutes of the shareholders’ extraordinary meeting held on December 30, 2002, which were covered by notarial deed No. 2 dated January 7, 2003 of Notary Deni Thanur, S.E., S.H., M.Kn,
the shareholders approved to liquidate PT Indo Clean Set Cement ICSC. As of December 31, 2006, the liquidation process of ICSC is still ongoing. The additional equity in net losses of ICSC after 2002
has not been recognized in the consolidated financial statements since ICSC has ceased operations and the effects of the additional equity are immaterial to the consolidated financial statements.
8. FIXED ASSETS
