PT SAMPOERNA AGRO Tbk FORMERLY PT SELAPAN JAYA AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Three Months Ended March 31, 2007
and Year Ended December 31, 2006 With Comparative Figures for 2005 and 2004
Expressed in thousands of Rupiah, unless otherwise stated
46
25. RELATED PARTY BALANCES AND TRANSACTIONS continued
b. Significant operating transactions with related party are summarized below:
2007 2006
2005 2004
Three Months One Year
One Year One Year
Payment of building rental to: PT Selapan Lestari Indah
- -
- 1,470,000
Percentage to consolidated total assets
- -
- 4.87
c. Sungai Rangit has an outstanding convertible loan amounting to Rp15,925,258 to POSSE Ltd., a related party established in Republic of Seychelles. The convertible loan will be considered due if
Sungai Rangit has fully settled its tax asessments for the fiscal years 1998 to 2005. Sungai Rangit has an option to repay all of the loan or convert the loan into additional share capital. This
convertible loan, which is non-interest bearing, was presented as “Other Long-Term Liability” in the 2007 consolidated balance sheet.
d. The Company lent US 17,505,000 or equivalent to Rp159,610,590 to Venture Max Resources Pte., Ltd., Singapore, its parent company, to refinance partially its acquisition of the Company’s
shares Note 15. This receivable was presented as part of “Other Receivables” in the consolidated balance sheet as of March 31, 2007 Note 6.
e. Palma Agro has outstanding exchangeable loan to PT Sampoerna Bio Energi “SBE”, a related party, which entitles Palma Agro to obtain all SBE’s shares, which represented 6.4 share
ownership in Sungai Rangit. This exchangeable loan, which was not subjected to interest, was presented as part of “Other Receivables” in the 2007 consolidated balance sheet Note 6.
f. The Company and Sungai Rangit have rental commitment with PT Buana Sakti, a related party Note 27d. The Company also has a management agreement with Venture Max Resources Pte.,
Ltd., the shareholder Note 27e. The subject entities are considered related parties to the Company andor its Subsidiaries in view of
common ownership andor management.
26. MINORITY INTERESTS
a Minority interests in net assets of Subsidiaries are as follows:
December 31, March 31, 2007
2006 2005
2004
Sungai Rangit 13,358,461
- -
- Aek Tarum
1,023,634 1,489,187
1,033,655 775,769
Mutiara Bunda Jaya 837,453
866,841 690,328
593,464 Telaga Hikmah
590,843 587,184
459,910 431,571
Binasawit Makmur 421,665
513,139 359,542
209,049 Gunung Tua Abadi
49,187 70,803
74,182 21,388
Total 16,281,243
3,527,154 2,617,617
2,031,241
Minority interests in net assets of Subsidiaries on March 31, 2007 has accounted beginning balance of minority interests in net asset of Sungai Rangit which was consolidated on January 1, 2007 amounted
to Rp13,679,112.
PT SAMPOERNA AGRO Tbk FORMERLY PT SELAPAN JAYA AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Three Months Ended March 31, 2007
and Year Ended December 31, 2006 With Comparative Figures for 2005 and 2004
Expressed in thousands of Rupiah, unless otherwise stated
47
26. MINORITY INTERESTS continued
b Minority interests in net income loss of Subsidiaries are as follows:
2007 2006
2005 2004
Three Months One Year
One Year One Year
Sungai Rangit 840,652
- -
- Aek Tarum
65,553 455,532
257,886 395,571
Mutiara Bunda Jaya 29,388
176,513 96,864
195,130 Telaga Hikmah
3,659 127,274
28,339 98,952
Binasawit Makmur 28,527
153,597 150,493
195,928 Gunung Tua Abadi
21,616 3,379
52,794 13,182
Total 925,023
909,537 586,376
898,763
27. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES
a. Under the Plasma loan agreement with PT Bank Mandiri Persero Tbk Mandiri, the Company is required to act as the guarantor avalist for the Plasma farmers’ loan repayments. For that
purpose, the Company will collect the loan repayments from a portion of the proceeds of fresh fruit bunches FFB produced from the farmers’ Plasma areas. If sales of FFB can not fulfill the
required installment, then the Company, as guarantor, will guarantee the insufficiency of the installment amount. The Company is required to purchase all Plasma FFB production until all of
the Plasma loans are settled. All Plasma plantations have been fully developed and transferred to the farmers in 2001.
As of March 31, 2007, total Plasma loan that must be settled by 413 Plasma farmers representing 826 hectares Plasma plantation area amounted to Rp882,000.
b. In accordance with several restructured loan agreements with PT Bank Rakyat Indonesia Persero Tbk in 2000, Telaga Hikmah is committed to develop 11,704 hectares, consisting of
5,000 hectares of Plasma plantation and 6,704 hectares of Inti plantations, which are all located in Ogan Komering Ilir, South Sumatera. As of March 31, 2007, Telaga Hikmah had develop 3,684
hectares of Plasma plantations.
c. In accordance with the Plasma loan agreement with PT Bank Rakyat Indonesia Persero Tbk., in 1996, Telaga Hikmah TH is required to act as the guarantor avalist for the repayment of
Plasma loan in the agreed schedule and installment, after the loans have been converted to Plasma participants. For that purpose, Telaga Hikmah will collect the loan repayment from a
portion of the sales proceeds of fresh fruit bunches FFB produced from farmers’ Plasma areas. If such proceeds are insufficient for the installment payment, Telaga Hikmah, as the guarantor,
has to cover the difference.
Under the loan agreement with BRI, Mutiara Bunda Jaya MBJ is required to act as guarantor for the Plasma loans under PIR Trans Program until the respective loan amounts are assigned to
the related Plasma participants, while TH is required to act as guarantor for the Plasma loan. After all the Plasma areas are converted and turned over to smallholders, the collateral for the Plasma
loan under the MBJ’s and TH’s loan agreements with BRI shall be the related land right certificates of the Plasma participants. Repayments are to be made out of a portion of the
proceeds from the sale of fresh fruit bunches FFB produced from the farmers’ Plasma areas. MBJ and TH are required to purchase all Plasma FFB production until all of the Plasma loans
have been settled.
PT SAMPOERNA AGRO Tbk FORMERLY PT SELAPAN JAYA AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Three Months Ended March 31, 2007
and Year Ended December 31, 2006 With Comparative Figures for 2005 and 2004
Expressed in thousands of Rupiah, unless otherwise stated
48
27. SIGNIFICANT AGREEMENT, COMMITMENTS AND CONTINGENCIES continued
