These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2008 and 2007 Expressed in rupiah, unless otherwise stated
24
8. FIXED ASSETS continued
Construction in progress consists of:
2008 2007
Machineries under installation 134,887,574,331
195,519,660,443 Buildings and structures under construction
46,004,421,717 54,373,796,114
Others 31,092,935,543
23,471,693,610
Total 211,984,931,591
273,365,150,167
Below are the percentages of completion and estimated completion periods of the construction in progress as of September 30, 2008:
Estimated Percentage Estimated Completion of Completion
Period
Machineries under installation 20 - 95
1 to 12 months Buildings and structures under construction
25 - 95 1 to 24 months
Others 50 - 95
1 to 12 months The unpaid balances to contractors and suppliers for the construction, purchase, repairs and
maintenance of fixed assets amounting to Rp2,143,140,182 and Rp23,187,289,909 as of September 30, 2008 and 2007, respectively, are presented as part of “Other Payables to Third Parties”
in the consolidated balance sheets.
Depreciation, amortization and depletion charges amounted to Rp442,668,718,975 and
Rp409,362,829,878 for the nine months ended September 30, 2008 and 2007, respectively. The Company and Subsidiaries insured their fixed assets and inventories against losses from fire and
other insurable risks under several combined policies, with a total insurance coverage of Rp117,015,928,675, US9,208,812, EUR1,332,999,620 and JP¥60,930,000 as of September 30,
2008. In management’s opinion, the above insurance coverage is adequate to cover any possible losses that may arise from such risks.
Based on the review of asset values at the end of the year, management believes that there is no potential impairment in the values of the assets included in the consolidated financial statements.
The Company and Subsidiaries own buildingconstruction rights or “Hak Guna Bangunan” HGB, land use rights or “Hak Pakai” HP and land ownership rights or “Hak Milik” HM over land covering
approximately 3,277.33 hectares, and local mining rights or “Surat Izin Penambangan Daerah” SIPD covering approximately 9,681.40 hectares at several locations in Indonesia, with legal terms ranging
from 5 to 30 years. Management believes that such rights can be extended upon their expiration.
As of September 30, 2008, the Company is still in the process of obtaining the titles of ownership or rights over land covering a total area of approximately 440,076 square meters. The Company is also in
the process of acquiring land rights covering a total area of approximately 2,548,507 square meters. The total expenditures amounting to Rp66,155,329,829 as of September 30, 2008 incurred in relation
to the above land rights acquisition process are recorded as part of “Other Non-current Assets” in the consolidated balance sheets.
The Company made advance payments for the purchase of certain machinery, equipment and spare parts from several suppliers. The outstanding balances of the purchase advances as of
September 30, 2008 and 2007 amounting to Rp6,941,878,739 and Rp5,788,923,007, respectively, are presented as part of “Other Non-current Assets” in the consolidated balance sheets.
The assets under capital lease are collateralized to the related obligations under capital lease Note 13.
These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2008 and 2007 Expressed in rupiah, unless otherwise stated
25
9. SHORT-TERM LOAN
