PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
61
8. INVENTORIES continued
As of December 31, 2011, inventories in such properties known as Ebony, Clover, Royal Orchard 2, Maple Residence, Palm Residence, Graha Boulevard and Jasmine Residence are available for sale,
and inventories in Royal Orchard 2, Royal Orchard 3, Orchard Square 1, The Tiara, Graha Boulevard, Crystal, The Springs, Golden 8 extension, Grisea, Canary, Scarlet, Starling, Ruby extension, Pascal
Residence, Darwin Residence, Sherwood apartment and Scientia apartment are under developmentconstruction.
As of December 31, 2010, inventories in such properties known as Royal Orchard 1, Ebony, Clover, New Batavia, Beryl, Jasmine, PHG-Jade and PHG-Turquoise are available for sale, and inventories in
Royal Orchard 2, Royal Orchard 3, Graha Boulevard, Palm Residence, Maple Residence, Acacia Residence, Crown, Dalton, Darwin, Grisea, Canary, Pascal and New Jasmine are under
developmentconstruction.
The borrowing costs which were capitalized to inventories amounted to Rp8,470,806, Rp13,956,413, Rp7,573,617 and Rp2,916,692 Notes 15 and 17 for the six-month period ended June 30, 2013 and
years ended December 31, 2012, 2011 and 2010, respectively.
As of June 30, 2013, houses, shops and apartment inventories, with net book value of Rp323,971,346, are covered by insurance against fire and other risks with PT Asuransi AXA Indonesia, PT Asuransi
Central Asia, PT Harta Aman Pratama, PT Asuransi Indrapura, PT Asuransi Allianz Utama, PT KSK Insurance Indonesia and PT Asuransi Astra Buana, all third parties, with total coverage of US528,000
and Rp980,858,481. The Company and Subsidiaries’ management is of the opinion that the above coverage is adequate to cover possible losses arising from such risks.
As of June 30, 2013 and December 31, 2012, 2011 and 2010, inventories are not used as collateral for any loans.
The Company and Subsidiaries’ management believes that inventories are realizable at the above amounts and no provision for losses is necessary.
9. PREPAID EXPENSES
This account consists of prepayments to third parties for:
December 31, June 30, 2013
2012 2011
2010
Insurance 4,004,194
2,195,258 2,305,027
2,181,333 Advertising
3,496,728 4,806,727
5,975,366 2,097,703
Interest subsidy 340,331
1,500,829 2,935,150
676,600 Others
3,604,128 2,958,328
1,433,927 840,500
Total prepaid expenses 11,445,381
11,461,142 12,649,470
5,796,136
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
62
10. UNDEVELOPED LAND
The details of undeveloped land are as follows:
December 31,
______________
June 30, 2013 2012
2011 2010
Location Area sqm
Amount Area sqm
Amount Area sqm
Amount Area sqm
Amount
Summarecon Bandung 2,043,845 599,973,702
1,735,566 491,734,637 1,229,111
351,853,766 54,120
13,709,644 Summarecon Bekasi
2,978,500 531,780,541 3,068,067 517,985,292
579,584 117,813,517
1,897,234 411,047,216 Summarecon Serpong
1,600,584 443,706,278 1,600,584 415,269,093
1,577,256 216,284,063
2,090,156 516,137,252 Others
2,443,507 311,178,762 572,109 176,501,326
243,708 157,630,570
386,052 162,320,114
Total undeveloped land 9,066,436 1,886,639,283
6,976,326 1,601,490,348 3,629,659
843,581,916 4,427,562 1,103,214,226
In 2012, undeveloped land located in Bali with acquisition cost of Rp3,701,938 was reclassified to investment properties due to change in management’s intention Note 13.
The status of ownership of undeveloped land is as follows:
December 31, June 30, 2013
2012 2011
2010 Status
Area sqm Area sqm
Area sqm Area sqm
Released rights “pelepasan hak” 6,394,470
4,399,275 2,180,736
3,014,094 Land certificates already issued
2,585,901 2,577,051
1,448,923 1,413,468
In the process of releasing rights “pelepasan hak” 86,065
- -
-
Total 9,066,436
6,976,326 3,629,659
4,427,562
As of June 30, 2013 and December 31, 2012, 2011 and 2010, some undeveloped land properties are pledged as collateral for loans from banks and bonds payable Notes 15 and 17, with detail of the
carrying value of the assets as follows:
December 31,
______________
June 30, 2013 2012
2011 2010
Location Area sqm
Amount Area sqm
Amount Area sqm
Amount Area sqm
Amount
Summarecon Bekasi PT Bank Mandiri
Persero Tbk Note 15
131,784 35,959,924
131,784 35,959,924
314,702 85,872,790
314,702 85,872,790
Bonds payable Note 17 -
- 76,450
20,860,925 76,450
20,860,925 76,450
20,860,925 Summarecon Serpong
PT Bank Central Asia Tbk Note 15
617,518 82,952,958
619,803 83,259,908
623,550 83,763,254
623,550 83,763,254
PT Bank Resona Perdania
Note 15 307,495
41,306,682 307,495
41,306,682 197,585
26,542,158 -
- PT Bank Mandiri
Persero 284,144
24,364,414 -
- -
- -
-
Total 1,340,941 184,583,978
1,135,532 181,387,439 1,212,287
217,039,127 1,014,702 190,496,969
No borrowing costs were capitalized to undeveloped land for the six-month period ended June 30, 2013 and years ended December 31, 2012, 2011 and 2010.
