PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2016 unaudited and December 31, 2015 audited and For the period of six months ended June 30, 2016 and 2015 unaudited
Expressed in thousands of Indonesian Rupiah, unless otherwise stated
83
37. SIGNIFICANT AGREEMENTS
AND COMMITMENTS CONTINUED
b. In March 2014, PT Nirwana Jaya Semesta NWJS entered into the following agreements with PT AAPC Indonesia AAPC:
1. Hotel Technical Assistance Agreement, wherein AAPC agreed to provide technical assistance and consultation for the construction of Novotel Hotel located in Slipi, Jakarta. NWJS agreed to pay a fee of US100,000 for the
service rendered by AAPC. This agreement is valid until the opening and commencement of operations of the Hotel. There is no payment as December 31, 2015, while as of June 30, 2016, NWJS has paid US40,000 or
equivalent to Rp514,580 to AAPC. This amount was capitalized to Investment Properties in the consolidated statement of financial position and as part of “Construction in Progress” Note 12.
2. Hotel Management Agreement, wherein AAPC is engaged as the sole and exclusive advisor and consultant to supervise, direct, manage and control the operations of Novotel Hotel, Jakarta. AAPC is entitled to receive
basic fee, incentive, pre-opening, reservation and sales contribution fees, which are computed at the rate in accordance with the terms of the agreement. As of June 30, 2016, no basic fee, incentive, pre-opening,
reservation and sales contribution have been paid to AAPC, since the hotel has not yet commenced its commercial operations.
c. In November 2014, PT Summarecon Hotelindo SMHO entered into the following agreements with Pop International Hotels Corporation PIHC and PT Tauzia International Management Tauzia as follow:
1. Hotel Technical Assistance Agreement, wherein PIHC agreed to provide technical assistance and consultation for construction, engineering, office design, contractor, information technology and furnishing for the
construction of Pop Hotel Kelapa Gading located in Kelapa Gading, Jakarta. SMHO agreed to pay a fee of US40,000 for the service rendered by PIHC. This agreement is valid until the opening and commencement of
operations of the Hotel. As of June 30, 2016, SMHO has paid US40,000 or equivalent to Rp464,200 to PIHC.
2. Tradename and Trademark License Agreements, wherein SMHO is authorized to use the name “Pop Hotels” and its hotel will be named “Pop Hotel Kelapa Gading”. SMHO agreed to pay royalty as compensation in
accordance with the terms of the agreement at the rate of 2,5 of total revenue. This agreement is valid for 10 years starting from the commercial operations of the hotel.
3. Hotel Management Agreement, wherein Tauzia is engaged as the sole and exclusive advisor and consultant to supervise, direct, manage and control the operations of Pop Hotel Kelapa Gading. Tauzia is entitled to receive
management fee, incentive fee such as, procurement of technology services, reservation and sales contribution fees, promotion, and handling costs which are computed at the rate in accordance with the terms of the
agreement.
d. In November 2014, PT Summarecon Hotelindo SMHO entered into the following agreements with Harris International Hotel Corporation HIHC and PT Tauzia International Management Tauzia:
1. Tradename and Trademark License Agreements, wherein SMHO is authorized to use the name “Harris” and its hotel will be named “Harris Hotel Bekasi”. SMHO agreed to pay royalty as compensation in accordance with the
terms of the agreement at the rate of 1,75 of total revenue of Harris Hotel Bekasi. This agreement is valid for 10 years starting from the commercial operations of the hotel.
2. Hotel Technical Assistance Agreement, wherein HIHC agreed to provide technical assistance and consultation for the construction of Harris Hotel Bekasi located in Bekasi. SMHO agreed to pay a fee of US75,000 for the
service rendered by HIHC. This agreement is valid until the opening and commencement of operations of the hotel. As of June 30, 2016, SMHO has paid US75,000 or equivalent to Rp942,844 to HIHC.
3. Hotel Management Agreement, wherein Tauzia is engaged as the sole and exclusive advisor and consultant to supervise, direct, manage and control the operations of Harris Hotel Bekasi. Tauzia is entitled to receive
management fee, incentive fee such as procurement of technology services, reservation and sales contribution fees, promotion, and handling costs which are computed at the rate in accordance with the terms of the
agreement.
PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2016 unaudited and December 31, 2015 audited and For the period of six months ended June 30, 2016 and 2015 unaudited
Expressed in thousands of Indonesian Rupiah, unless otherwise stated
84
37. SIGNIFICANT AGREEMENTS
