PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2004 and 2003 Expressed in rupiah, unless otherwise stated
45
22. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
d. In 2004 and 2003, the Company entered into one -year agreements with several land transporters for the distribution of the Company’s cement in Indonesia. Transportation expense incurred is
recorded as part of “Delivery and Selling Expenses” Delivery, loading and transportation account in the consolidated statements of income, while the unpaid transportation expenses amounting to
Rp24,188,039,656 and Rp18,208,615,389 as of December 31, 2004 and 2003, respectively, are shown as part of “Other Payables to Third Parties” in the consolidated balance sheets.
e. DAP entered into sev eral distributorship agreements with PT Jabotabek Niagatama Sukses, PT Jabar Multindo Perkasa, PT Jateng Kencana Abadimulia, PT Bangunsukses Niaga Nusantara,
PT Royal Inti Mega Utama, and PT Saka Agung Abadi. Pursuant to these agreements, DAP, as the Company’s non-exclusive main domestic distributor, has appointed these companies to act as area
distributors of bagged cement and bulk cement for the domestic market see Note 17.
The above- mentioned distributorship agreements provide for, among others, the specific distribution area or region for each sub-distributor, delivery requirements, obligations and responsibilities of the
sub-distributors, responsibilities of DAP, terms and sales price, and restriction to transfer the distribution rights without prior consent from DAP. These agreements were originally valid until
July 14, 2004, and were automatically renewable for another five 5 years, subject to the same terms and conditions, except for the requirement to submit written termination notice three 3
months prior to the expiration of the agreement by any party who wished not to renew or extend its distribution rights.
On April 6, 2004, DAP submitted written termination notices to the above sub -distributors. On June 18, 2004, DAP entered into new distributorship agreements with PT Bangunsukses Niagatama
Nusantara, PT Cipta Pratama Karyamandiri, PT Intimegah Mitra Sejahtera, PT Nusa Makmur Perdana, PT Royal Inti Mandiri Abadi, PT Saka Agung Abadi, PT Adikarya Maju Bersama,
PT Angkasa Indah Mitra, PT Citrabaru Mitra Perkasa, PT Kharisma Mulia Abadijaya, PT Kirana Semesta Niaga, PT Primasindo Cipta Sarana, PT Samudera Tunggal Utama, and PT Sumber
Abadi Sukses. Under the agreements, DAP appointed these companies
to be non-exclusive area
distributors to s ell bagged cement and bulk cement for the domestic market. The above- mentioned distributorship agreements provide for, among others, the specific distribution
area or region for each sub-distributor, delivery requirements, obligations and responsibilitie s of the sub-distributors, responsibilities of DAP, terms and sales price, and restriction to transfer the
distribution rights without prior consent from DAP. These agreements are effective from July 14, 2004 until December 31, 2008, and may be extended for an additional period of three 3 years
upon written agreement by both parties.
Total gross sales by the Company and DAP to these sub -distributors in 2004 and 2003 are as follows:
2004 2003
PT Jabotabek Niagatama Sukses 622,439,113,655 1,114,234,822,240
PT Jabar Multindo Perkasa 424,390,722,806
763,972,268,928 PT Jateng Kencana Abadimulia
294,181,720,430 561,787,336,992
PT Bangunsukses Niaga Nusantara 192,255,610,283
288,717,674,942 PT Bangunsukses Niagatama Nusantara
177,670,345,471 -
PT Saka Agung Abadi 171,562,401,040
131,976,999,153 PT Samudera Tunggal Utama
159,583,841,936 -
PT Nusa Makmur Perdana 154,196,367,165
-
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2004 and 2003 Expressed in rupiah, unless otherwise stated
46
22. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENC IES continued 2004
