Towards Operational Excellence and Financial Sustainability

These consolidated fi nancial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2004 and 2003
(Expressed in rupiah, unless otherwise stated)
The actuarial valuation was determined using the “Projected Unit Credit” method which considered the following
assumptions:
Company
Subsidiaries
Discount rate 10% in 2004 and 9% in 2003 10% in 2004 and 9% in 2003
Wage and salary increase 9% in 2004 and 8% in 2003 9% in 2004 and 8% in 2003
Retirement age 55 years 55 years
Average employee turnover 1% for employees with ages from 2% - 5% for employees with
20 years old up to 54 years old ages from 20 years old,
decreasing linearly to
0% at age 45
Table of mortality Commissioner’s Standard Commissioner’s Standard
Ordinary 1980 Ordinary 1980
Disability 10% of the mortality rate 10% at the mortality rate
Provisions for employee benefits recognized in the consolidated statements of income are as follows:
2004 2003
Current service costs 9,040,141,000 5,865,873,000
Interest costs 12,640,194,000 6,549,738,000
Amortization of past service costs and actuarial gains 7,145,843,131 4,104,679,312
Net employees’ benefits expenses 28,826,178,131 16,520,290,312
A reconciliation of estimated liability for employee benefits is as follows:
2004 2003
Present value of defined benefit obligation 152,363,252,000 130,879,570,000
Unamortized balance of the non-vested past service
costs (102,652,854,000) (104,659,854,000)
Actuarial loss (16,062,882,277) (9,070,286,819)
Translation liability - 591,204,000
Liability should be recognized in consolidated
balance sheets 33,647,515,723 17,740,633,181
Current maturity of estimated liability for employee
benefits 6,214,292,069 3,580,283,310
Long-term portion 27,433,223,654 14,160,349,871
Movements in the estimated liability for employee benefits are as follows:
2004 2003
Balance at beginning of year 17,740,633,181 1,383,198,297
Provision during the year 28,826,178,131 16,520,290,312
Payment during the year (12,919,295,589) (162,855,428)
Balance at end of year (recorded as part of
“Long-term Liabilities - Others” account in the
consolidated balance sheets) 33,647,515,723 17,740,633,181
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Indocement Annual Report 2004