Adaro Energy Annual Report 2009 169 www.adaro.com
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 531
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008
Expressed in million Rupiah, unless otherwise stated
12. FIXED ASSETS continued 2008
Exchange difference
due to financial
Beginning Disposals
statement Ending
balance Additions
Acquisition reclassification
translation balance
Acquisition costs Direct ownership
Land 26,365
578,944 -
26 -
605,283 Buildings
82,289 7,909
- 49,985
7,167 147,350
Infrastructure 207,275
- -
- 33,692
240,967 Machinery, operational
equipment and vehicles 2,302,174
373,279 -
80,703 157,436
2,913,592 Vessels
- -
- -
- -
Mining equipment 3,908
327 -
- -
4,235 Project equipment
7,218 5,178
- -
- 12,396
Office equipment 44,185
7,939 1,765
2,897 3,225
60,011 Crushing and handling
facilities 664,321
72,674 -
5,368 118,221
860,584 Roads and bridges
830,444 1,103
- 94,087
147,472 1,073,106
Stockpile facilities 57,462
- -
- 9,340
66,802 Dock facilities
20,477 -
- -
3,328 23,805
4,246,118 1,047,353
1,765 233,014
479,881 6,008,131
Construction in progress 73,589
423,013 298,960
154,865 11,583
652,280 Leased assets
Operational equipment 603,794
722,255 -
97,601 -
1,228,448 Vessels
- -
- -
- -
Vehicles 191
- 234
149 -
276 603,985
722,255 234
97,750 -
1,228,724 4,923,692
2,192,621 300,959
19,601 491,464
7,889,135 Accumulated depreciation
Direct ownership Buildings
21,074 6,517
- 115
3,247 30,723
Infrastructure 66,253
6,606 -
- 11,633
84,492 Machinery, operational
equipment and vehicles 640,759
213,624 -
29,162 70,655
954,200 Vessels
- -
- -
- -
Mining equipment 2,543
789 -
- -
3,332 Project equipment
2,969 2,063
- -
- 5,032
Office equipment 21,811
9,238 1,287
1,756 2,915
33,495 Crushing and handling
facilities 208,939
41,912 -
- 39,460
290,311 Roads and bridges
271,420 40,007
- -
49,366 360,793
Stockpile facilities 31,377
2,959 -
- 5,488
39,824 Dock facilities
14,920 1,052
- -
2,563 18,535
1,282,065 324,767
1,287 27,291
185,327 1,820,737
Leased assets Operational equipment
82,816 98,807
- 37,453
- 144,170
Vessels -
- -
- -
- Vehicles
113 42
19 130
- 44
82,929 98,849
19 37,583
- 144,214
1,364,994 423,616
1,306 10,292
185,327 1,964,951
Net book value 3,558,698
5,924,184
170 Adaro Energy Annual Report 2009
From Us to Y
ou
Running Adaro
Management Report
Owning Adaro
Governing Adaro
Financial Report
Contact Us Corporate Social
Responsibility Adaro in Summary
www.adaro.com
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 532
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008
Expressed in million Rupiah, unless otherwise stated
12. FIXED ASSETS continued
Depreciation expense was allocated as follows:
2009 2008
Cost of revenue 775,872
417,563 General and administrative expenses
21,083 6,053
796,955 423,616
The calculation of loss on disposals of fixed assets was as follows:
2009 2008
Acquisition costs 45,518
19,601 Accumulated depreciation
32,582 10,292
Carrying value of fixed assets 12,936
9,309 Proceeds from disposals of fixed assets
6,286 6,250
Loss on disposals of fixed assets 6,650
3,059 In accordance with the CCA, the fixed assets of Adaro as at 31 December 2009 amounting to Rp 1,431,539 2008: Rp 1,445,829
remain the property of the Government of the Republic of Indonesia. However, Adaro has an exclusive right to use these assets over the contract period, or their useful lives, whichever is shorter.
In accordance with the Cooperation Agreement, the fixed assets of IBT as at 31 December 2009 amounting to Rp 690,681 2008: Rp 763,557, in the coal port operation become the property of Pelindo III at the end of the 30-year operation period.
The Group owns 27 plots of land with “Hak Guna Bangunan” titles “Building-Use Titles” or “HGB” with remaining useful lives of between 10 and 29 years. The Group’s management believes that there will be no difficulty in extending the land rights as the land
was acquired legally and this is supported by sufficient evidence of ownership. In August 2008, ATA paid land compensation amounting to US60,000,000 to PT Cakung Permata Nusa “Cakung”, PT
Cakradenta Agung Pertiwi “Cakradenta” and PT Astra Agro Lestari Tbk “AAL” to settle the status of overlapping land plots between the mining area owned by Adaro and the plantation areas owned by Cakung and Cakradenta of 7,163 hectares.
Currently, the land title is in the process of being transferred to ATA.
As at 31 December 2009, the Group’s fixed assets were insured from all risks for damage with total coverage of approximately Rp 8,579,097, which also includes construction for Project Tanjung Tabalong coal fired power plant by MSW. Management believes
that the fixed assets as at 31 December 2009 were adequately insured. The moveable fixed assets owned by SIS and the land and building owned by SMP were pledged as collateral for the Senior Credit
Facility refer to Note 21b.
Construction in progress
Construction in progress represents projects that have not been completed at the balance sheet date as follows:
2009 Percentage of
Accumulated Estimated
Construction in progress completion
costs completion
Power plant 28
159,518 November 2011
Vessels 40 - 50
78,787 July 2010
Roads and bridges 13 - 98
72,126 January 2010 - 2011
Infrastructure 75
77,104 April 2010
Conveyor belt 10
102,122 December 2011
Coal crushing and handling facilities 63 - 95
32,720 January – April 2010
Others each below Rp 30,000 10 - 98
55,897 January – July 2010
578,274