PT Summarecon Agung Tbk | Laporan Tahunan 2010 Annual Report

These consolidated financial statements are originally issued in Indonesian language.
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)
12. INVESTMENT PROPERTIES (continued)
2009 Movements
35
2009
Balance as of Balance as of
December 31, 2008 Additions Deductions** Reclassifications December 31, 2009
Cost
Land 404,371,027 6,119,329 - - 410,490,356
Buildings and infrastructures 922,382,411 4,624,836 1,854,097 (4,895,433 ) 920,257,717
Machinery and
heavy equipment 152,313,128 6,832,204 - 12,412,691 171,558,023
Total cost 1,479,066,566 17,576,369 1,854,097 7,517,258 1,502,306,096
Accumulated depreciation
Buildings and infrastructures 189,988,813 22,576,635 55,172 - 212,510,276
Machinery and
heavy equipment 40,141,623 15,631,296 - - 55,772,919
Total accumulated
depreciation 230,130,436 38,207,931 55,172 - 268,283,195
Net book value 1,248,936,130 1,234,022,901
∗ consists of sales of investment properties
** consists of disposals of investment properties
Depreciation of Rp40,688,950 and Rp38,207,931 for the years ended December 31, 2010 and 2009
was charged to cost of sales and direct costs.
In 2009, the Company disposed certain of its investment properties with net book value of
Rp1,798,925.
In 2009, the Company reclassified completed construction in progress (under fixed assets) to
investment properties with net book value amounting to Rp29,040,631 (Note 11) which was
subsequently reclassified partially to inventories with net book value amounting to Rp21,523,373 due
to change in management’s intention in using the asset.
Investment properties, except land, are covered by insurance against fire, flood and other risks (allrisks)
under blanket policies with several companies, including PT Asuransi Indrapura, PT Kurnia
Insurance Indonesia, PT Asuransi Mitsui Sumitomo Indonesia Group, PT Asuransi Allianz Indonesia,
PT Asuransi Central Asia, PT ACE INA Insurance, PT Asuransi Umum Mega, PT China Insurance
Indonesia, and PT Asuransi Himalaya Pelindung, all third parties, for US$144,775,109 and
Rp71,600,000 in 2010 and US$147,244,500 and Rp6,600,000 in 2009. The Company and
Subsidiaries also covered by insurance against terrorism and sabotage amounting to US$127,864,087
and Rp394,000,000 in 2010 and US$120,229,000 and Rp391,500,000 in 2009. In addition, the
Company and Subsidiaries covered by insurance against business interruption amounting to
Rp414,400,000 and Rp421,545,000 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, investment properties with net book value of Rp951,467,022 and
Rp890,401,862, respectively, are pledged as collateral for the loans from banks and financing
institution, bonds payable and sukuk ijarah (Notes 14 and 15).
The fair value of the investment properties amounted to Rp4,401,680,000 (full amount) in 2010 and
2009, of which Rp3,555,426,040 (full amount) was determined partly by independent appraisers and
partly based on the Tax Office's sale value of tax object ("NJOP").