PT Summarecon Agung Tbk | Laporan Tahunan 2010 Annual Report

These consolidated financial statements are originally issued in Indonesian language.
11. FIXED ASSETS (continued)
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2010 and 2009
(Expressed in thousands of rupiah, unless otherwise stated)
On October 1, 2009, SCK, a Subsidiary, handed over Discovery Dormitory to Yayasan Media
Nusantara located in Pondok Hijau Golf Street, Gading Serpong, for a total consideration amounting to
Rp20,713,228 (including value added tax and dormitory facilities for 192 bedrooms). In 2010, the
related assets with net book value totaling Rp11,178,932 were reclassified to inventories, and then
sold to Yayasan Media Nusantara.
The percentages of completion of the construction in progress as of December 31, 2010 and 2009 are
based on the actual expenditures incurred compared to the total budgeted project cost.
Fixed assets, except land, are covered by insurance against fire, flood and other risks (all-risks) under
blanket policies with several companies, including PT Asuransi Mitsui Sumitomo Indonesia Group,
PT Asuransi Allianz Indonesia, PT Asuransi Central Asia, PT Asuransi Indrapura, PT Kurnia Insurance
Indonesia, PT Asuransi Umum Mega, PT Asuransi Sinar Mas, and PT Asuransi Himalaya Pelindung,
all third parties, for US$38,824,125 and Rp57,707,528 in 2010, and US$22,543,550 and Rp48,536,909
in 2009. SH, a Subsidiary, also covered by insurance against terrorism and sabotage amounting to
US$14,000,000 and US$5,000,000 in 2010 and 2009, respectively. In addition, the Company and
Subsidiaries obtained insurance against business interruption amounting to Rp114,544,485 and
Rp36,199,485 in 2010 and 2009, respectively. The Company’s and Subsidiaries’ management are of
the opinion that the above coverages are adequate to cover possible losses arising from such risks.
As of December 31, 2010 and 2009, fixed assets with net book value of Rp29,182,935 and
Rp31,273,979, respectively, are pledged as collateral for the loans from banks and financing institution
(Note 14).
Based on the Company’s and Subsidiaries’ assessment, there were no events or changes in
circumstances which indicated an impairment in the value of fixed assets as of December 31, 2010
and 2009.
12. INVESTMENT PROPERTIES
The details of investment properties are as follows:
2010 Movements
34
2010
Balance as of Balance as of
December 31, 2009 Additions Deductions* Reclassifications December 31, 2010
Cost
Land 410,490,356 536,757 - - 411,027,113
Buildings and infrastructures 920,257,717 12,458,415 - 57,384,621 990,100,753
Machinery and
heavy equipment 171,558,023 5,817,886 - 8,634,058 186,009,967
Total cost 1,502,306,096 18,813,058 - 66,018,679 1,587,137,833
Accumulated depreciation
Buildings and infrastructures 212,510,276 23,060,196 - (223,509) 235,346,963
Machinery and
heavy equipment 55,772,919 17,628,754 - - 73,401,673
Total accumulated
depreciation 268,283,195 40,688,950 - (223,509) 308,748,636
Net book value 1,234,022,901 1,278,389,197