NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
64
2011 Property
Development Investment
Property Other Businesses
Consolidation
Net revenues 627,883,819
266,006,262 44,688,504 938,578,585
Gross profit 276,041,297
143,296,824 32,307,535 451,645,656
Income loss from operations 124,078,591
113,065,319 2,530,685 234,613,225
Finance income 27,200,437
Gain on foreign exchange - net 718,530
Gain on derivative instrument 43,812
Finance costs 42,723,253
Profit before income tax 219,852,751
Income tax expense - net 64,503,502
Profit for the year
155,349,249
Other information
Segment assets 3,473,230,121
2,649,382,608 1,976,561,952 8,099,174,681
Segment liabilities 3,901,688,319
1,087,621,866 632,764,546 5,622,074,731
Depreciation and amortization 20,171,492
55,796,532 30,698,725 106,666,749
36. SIGNIFICANT AGREEMENTS AND COMMITMENTS
a. In 2011, the Company and Subsidiaries entered into marketing agreements with certain property
agents, whereby the Company and Subsidiaries agreed to pay certain commissions at certain rates to the property agents if they are able to achieve the targeted sales within certain periods of time.
Total sales commissions of property agents for sales recognized in 2011 amounted to Rp10,976,270, which is presented as part of selling expenses in the consolidated statements of
comprehensive income Note 31, while total sales commissions of property agents for sales which have not been recognized in 2011 amounted to Rp10,681,506, is presented in advances, as part of
the advances for sales commission Note 10.
b. In 2011, the Company entered into a new steel price agreement with PT Jakarta Cakratunggal Steel
PT CS for steel purchase amounting to Rp44,764,750, whereby the Company should pay 40 of the total contract as an advance to PT CS. The remaining 60 will be paid partially when delivery of
steel is made by PT CS. As of 31 December 2011, the Company has paid Rp17,905,900 which is presented in advances, as part of the advances for the purchase of construction materials Note 10.
c. On 9 June 2011, the Company, through PT Summarecon Property Development SPD, a
subsidiary, entered into a conditional shares sales and purchases agreement with Venture Hover Limited VHL, to acquire 51 ownership of PT Duta Sumara Abadi DSA for Rp288,953,091, which
is currently owned by VHL. The purpose of the acquisition of DSA is to acquire full ownership of a land property owned by DSA in the Bekasi area. As of 31 December 2011, SPD has paid
Rp150,062,000 to VHL, which is presented as other assets, as part of advance for investment Note 14.
d.
On 21 October 2010, the Company entered into a rental agreement with North Jakarta International School Foundation NJIS for a land property located in Kelapa Gading which was used as a school.
The rental was Rp5,000,000 per year. This agreement was valid from 14 August 2010 until 30 June 2011.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
65
e. On 30 June 2010, PT Summerville Property Management SPM entered into a property
management agreement with Perhimpunan Penghuni Rumah Susun Hunian The Summit Kelapa Gading PP Summit, whereby PP Summit appointed SPM to provide property management services
for The Summit Apartment. PP Summit agreed to pay monthly fee as compensation, amounting to Rp25,000. This agreement is valid for 3 years from July 2010 to June 2013.
f. On 16 February 2010, the Company and GO entered into steel price agreements with PT Jakarta
Cakratunggal Steel Mills CS for steel purchases amounting to Rp60,392,400 for the Company and Rp11,800,000 for GO. As of 31 December 2011, the Company and GO have bought and used all the
steel agreed in these agreements for their existing projects. No balance is outstanding from these transactions as of 31 December 2011.
g.
On 12 January 2010, the Company entered into building construction and marketing agreement with PT Permata Cahaya Indah PCI, whereby the Company agreed to deliver monitoring and marketing
services for office buildings belonging to PCI located in Kelapa Gading. For these services, PCI agreed to pay the Company an annual management fee amounting to Rp12,000,000.
h. On 2 November 2009, SH, a Subsidiary, entered into a Tradename and Trademark License
Agreement with Harris International Hotels wherein SH is authorized to use the name “Harris” for “Harris Hotel Kelapa Gading”. SH agreed to pay royalties as compensation in accordance with the
terms of the agreement at rates up to a maximum of 1.50 of total revenues. This agreement is valid for 10 years. The hotel commenced operations from 2 May 2010..
i. On 2 November 2009, the Company and SH entered into a Hotel Management Consulting
Agreement with PT Tauzia International Management Tauzia wherein Tauzia is engaged as sole and exclusive advisor and consultant to supervise, direct, manage and control the operations of
Harris Hotel Kelapa Gading. Tauzia is entitled to receive consultation fees as compensation computed at rates up to a maximum of 8 of gross operating profit as defined in the agreement.
This agreement is valid for 10 years. The hotel commenced operations from 2 May 2010.
j. On 30 July 2009, SCK entered into a joint operation, known as KSO Summarecon Lakeview KSO-
SL, with TGS and LK. Under the terms of the agreement, the parties agreed to collaborate to develop an area known as East Business Unit Land belonging to TGS. KSO-SL has been appointed
as the sole party to develop, sell and manage the East Business Unit Land for a period of 10 years until 29 April 2019. The parties agreed that the net profits from the joint operation shall be
distributed to the parties in the following manner: TGS at 10, LK at 45 and SCK at 45. However, loss from the KSO operations, if any, shall be borne by SCK and LK in their respective
proportions. Subsequently, on 17 March 2010, the parties agreed to change the percentages of profit sharing to become: TGS at 5, LK at 40 and SCK at 55.
k. In May 2007, the Company entered into a Hotel Technical Assistance Agreement with Tauzia
wherein Tauzia will provide technical assistance for the construction of a hotel at a fee as agreed in the agreement. This agreement is valid until the opening and commencement of operations of the
hotel.
l.
The Company, BMS, GO and SCK entered into agreements with each of BCA, CIMB, OCBC, BII, Permata, Panin, Mandiri, Danamon, BNI and UOB whereby these banks agreed to provide housing
and apartment loans to the customers of the Company, BMS, GO and KSO Summarecon Serpong. The Company, BMS, GO and SCK are required to provide collateral in the form of corporate
guarantees and time deposits to temporarily secure the customers’ loans until such time the Company, BMS, GO and KSO Summarecon Serpong submit to the respective banks the related
certificates of ownership of the land and buildings purchased by the customers Note 14.
SCK entered into the above agreements on behalf of KSO Summarecon Serpong a joint operation Note 36m.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
66
m.
Based on notarial deed No. 39 dated 21 July 2004 of Dewi Himijati Tandika, S.H., SCK entered into a joint operation known as KSO Summarecon Serpong under an agreement with PT Jakartabaru
Cosmopolitan JBC. Under the agreement, both parties agreed to collaborate in developing 400 hectares of land belonging to JBC in Perumahan Gading Serpong Permai, Tangerang. KSO
Summarecon Serpong has been appointed as the only party which will plan, release, expand and operate the land, while SCK has been appointed to handle the management of the joint operation
and identify financing sources for its operations. Income or loss from operations will be distributed between both parties at 70 for SCK and 30 for JBC. This agreement is valid for a period of 10
years until 20 July 2014.
The obligations of JBC in relation to this joint operation include the following, among others: Provide land to be managed and developed by the parties in KSO Summarecon Serpong
Take responsibility for solving disputes arising from the land development, if any Provide the labor requirements of KSO Summarecon Serpong
Permit SCK to utilize the location license owned by JBC and acquire land ownership over the
undeveloped land Allow SCK to utilize infrastructure located on the land
Assist SCK in obtaining the rights over the remaining land by signing the release of land ownership agreements with the individual land owners.
The obligations of SCK in relation to this joint operation include the following, among others: Provide financing for land development
Provide the labor requirements of KSO Summarecon Serpong Acquire land ownership covered by the project.
The details of assets, liabilities, revenues and expenses of KSO Summarecon Serpong which were proportionally consolidated to SCK’s financial statements representing 70 sharing ratio are as follows:
Total Before Elimination 2012 2011
Assets 879,373,714
647,254,484 Liabilities
879,373,714 647,254,484
Revenues 170,948,770
53,804,164 Expenses
28,830,197 36,480,499
37. DERIVATIVE INSTRUMENTS
The Company is exposed to market risks, primarily changes in currency exchange rates and interest rate, and uses derivative instruments to hedge the risks in such exposures in connection with its risk
management activities, The Company does not hold or issue derivative instruments for trading purposes.
The Company entered into a Cross Currency Interest Rate Swap CCIRS transaction with PT Bank ANZ Indonesia to hedge the Company’s US5 million debt to Resona Note 15, Under the CCIRS, the
Company purchased U,S, dollars with a principal amount of US5 million from PT Bank ANZ Indonesia on 31 August 2006 for a fixed exchange rate of Rp9,085 to US1 with a maturity date on 30 June 2011. The
Company agreed to pay the rupiah principal amortization amount at the fixed exchange rate according to the scheduled dates, and simultaneously receive the fixed U,S, dollar principal amortization amount, PT
Bank ANZ Indonesia agreed to pay the Company monthly interest in U,S,dollars computed at the interest
