PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
45
22. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued 2005
2004
PT Cipta Pratama Karyamandiri 144,568,684,670
33,601,426,452 PT Saka Agung Abadi
139,891,470,182 114,057,324,241
PT Jabotabek Niagatama Sukses -
622,439,113,473 PT Jabar Multindo Perkasa
- 424,390,722,789
PT Jateng Kencana Abadimulia -
294,181,720,203 PT Bangunsukses Niaga Nusantara
- 201,005,766,289
PT Royal Inti Mega Utama -
119,574,839,589
Total 2,900,364,262,867 2,479,398,596,360
The total outstanding receivables from these sub-distributors amounting to Rp377,884,091,190 and Rp264,113,950,118 as of September 30, 2005 and 2004, respectively, are recorded as part of
“Trade Receivables - Third Parties” account in the consolidated balance sheets.
f. In 2004, the Company and DAP entered into lease agreements with PT Serasi Tunggal Mandiri for the lease of office space and car park located at Wisma Indocement. Rental expenses charged to
current operations amounted to Rp8,264,355,780 and Rp7,603,216,100 for the nine months ended September 30, 2005 and 2004, respectively.
g. In the EGMS held on March 29, 2001, the independent shareholders approved the exclusive export distribution agreement between the Company and HCT Services Asia Pte., Ltd. formerly HC
Trading International Inc., an HC subsidiary, under the following terms and conditions see Note 17:
• HCT Services Asia Pte., Ltd.
HCT will act as the Company’s exclusive export distributor. •
The Company shall invoice HCT at a net price equivalent to the U.S. dollar FOB sales price invoiced by HCT to its customers, less:
- 5.5 on the first one million tons shipments per year.
- 3.0 on shipments in excess of one million tons per year.
• The export distribution agreement is effective for twenty 20 years.
Total sales discounts granted to HCT for the nine months ended September 30, 2005 and 2004 amounted to approximately US2.36 million and US1.90 million, respectively.
h. The Company has an outstanding agreement with PT Rabana Gasindo Usama Rabana whereby Rabana will build and own the distribution and receiving facilities for natural gas at Tegal Gede -
Citeureup with a capacity of 18 MMSCFD. The Company will pay compensation of US0.45 per MMBTU of natural gas delivered as gas transportation fee and US0.02 per MMBTU of natural
gas delivered as technical fee. The agreement will expire in 2014 or may be terminated if the total volume of natural gas consumed reaches the contractual volume as stipulated in the agreement.
The agreement also regulates a minimum annual delivery of natural gas by the Company. If the Company is unable to utilize the minimum volume as stated in the agreement, Rabana will claim
from the Company payment of gas transportation fee for the unconsumed volume. The minimum purchase requirement was amended by an addendum signed by the Company and Rabana on
February 17, 2005. The addendum stipulates that minimum purchase requirement will no longer applicable if the total cumulative payments starting from January 1, 2005 made for the gas
transportation fee exceed US1,074,000 plus interest and overhead expenses.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
46
22. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
