PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Three Months ended March 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
9
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued b. Principles of Consolidation continued
Year of Incorporation
Start of Total
Principal Country
Commercial Assets as of
Effective Percentage Activity
of Domicile Operations
March 31, 2005 of Ownership
PT Indomix Perkasa Ready mix
Indonesia 19921992
70,143,966,183 99.99
Indomix concrete
manufacturing Indocement Cayman
Investing Cayman Islands 19911991 34,207,730,700
100.00 Islands Limited
Indirect PT Pionirbeton
Ready mix Indonesia
19961996 103,607,622,096 99.99
Industri PBI concrete
formerly PT Pioneer manufacturing
Beton Industri PT Multi Bangun Galaxy
MBG Trading
Indonesia 1999
1,688,907,109 99.99
DAP was established in 1998 for the purpose of acting as the Company’s main domestic distributor of certain cement products.
On July 9, 2004, DAP and Indomix, subsidiaries, acquired 1,000 shares of MBG at book value,
representing 100 ownership from PT Total Galaxy and Mr. Freddysun, third parties. MBG is a company which has obtained the right to use “hak pengelolaan” the Lembar port Lombok, where
the Company built its terminal, for 20 years from PT PERSERO Pelabuhan Indonesia III since January 1, 2001.
As of March 31, 2005, MBG has not yet started its commercial operations. The Company also has five 5 other subsidiaries, all with effective percentages of ownership of
99.99. The total cost of investments in these entities amounted to Rp20,000,000. Since these entities have no activities and the total cost of the investments in these subsidiaries is
immaterial, their accounts were no longer consolidated into the consolidated financial statements. Instead, the investments in these subsidiaries are presented as part of “Long-term Investments and
Advances to Associated Companies” in the consolidated balance sheets. The details of these subsidiaries are as follows:
Year of Country of
Total Assets as of Incorporation
Domicile March 31, 2005
PT Bhakti Sari Perkasa Abadi 1998
Indonesia 5,000,000
PT Lentera Abadi Sejahtera 1998
Indonesia 5,000,000
PT Mandiri Sejahtera Sentra 1998
Indonesia 5,000,000
PT Sari Bhakti Sejati 1998
Indonesia 5,000,000
PT Makmur Abadi Perkasa Mandiri 1998
Indonesia -
All significant intercompany accounts and transactions have been eliminated.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Three Months ended March 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
10
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued b. Principles of Consolidation continued
