These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003 and 2002 Expressed in rupiah, unless otherwise stated
45
20. RETIREMENT BENEFITS continued
December 31,
2003 Discount
rate 9
Wage and salary increase 8
Retirement age 55 years
Average employee turnover 1 for employees with ages from
20 years old up to 54 years old Table of mortality
Commissioner’s Standard Ordinary 1980 Disability
10 of the mortality rate Employee benefits of Subsidiaries are determined based on internal calculations. The total provisions
made by the Subsidiaries amounted to Rp 1,375,948,186 presented as part of “Long-term Liabilities - Others” in the 2003 consolidated balance sheet as of December 31, 2003.
As of December 31, 2002 the total provisions made by the Company and Subsidiaries for their employees who did not join the pension plan amounted to Rp 1,655,391,997, which is recorded as part
of “Accrued Expenses” account in the 2002 consolidated balance sheet. For the employees who joined the pension plan, management believes that the contributions to the retirement plan are enough to
cover the payments of such employees’ benefits.
21. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES a. On October 20, 2003, the Company, Koperasi Gabindo Developer and PT Indotek Engico
Contractor entered into an agreement for the construction of the Griya Indotarjun Indah Housing Project which is intended for the Company’s employees at the Tarjun site. To assist in the
development of the housing project, the Developer entered into three 3 agreements with the Contractor for the latter to construct 596 units of houses including the infrastructure and the
facilities for a total contract value of Rp 31.6 billion excluding value added tax. The housing construction is divided into three phases. The estimated completion date for the first phase
consisting of 250 units is at the end of June 2004. The completion dates for the second and the third phases will be determined at a later date.
b. 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, among others 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 term of the export distribution agreement is twenty 20 years.
These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003 and 2002 Expressed in rupiah, unless otherwise stated
46
21. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued c.
