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)
37. SIGNIFICANT AGREEMENTS AND COMMITMENTS (continued)
The Company, BMS, GO and SCK are required to provide collateral in the form of corporate
guarantees and time deposits to temporarily secure the customers’ loans until such time the
Company, BMS, GO and KSO Summarecon Serpong submit to the respective banks the related
certificates of ownership of the land and buildings purchased by the customers (Note 13).
SCK entered into the above agreements on behalf of KSO Summarecon Serpong (a joint
operation), which is not a legal entity (Note 37i).
i. Based on notarial deed No. 39 dated July 21, 2004 of Dewi Himijati Tandika, S.H., SCK entered
into a joint operation known as KSO Summarecon Serpong under an agreement with
PT Jakartabaru Cosmopolitan (JBC). Under the agreement, both parties agreed to collaborate in
developing 400 hectares of land belonging to JBC in Perumahan Gading Serpong Permai,
Tangerang. KSO Summarecon Serpong has been appointed as the only party which will plan,
release, expand and operate the land, while SCK has been appointed to handle the management
of the joint operation and identify financing sources for its operations. Income or loss from
operations will be distributed between both parties at 70% for SCK and 30% for JBC. This
agreement is valid for a period of 10 years until July 20, 2014.
The obligations of JBC in relation to this joint operation include the following, among others:
• Provide land to be managed and developed by the parties in KSO Summarecon Serpong
• Take responsibility for solving disputes arising from the land development, if any
• Provide the labor requirements of KSO Summarecon Serpong
• Permit SCK to utilize the location license owned by JBC and acquire land ownership over the
undeveloped land
• Allow SCK to utilize infrastructure located on the land
• Assist SCK in obtaining the rights over the remaining land by signing the release of land
ownership agreements with the individual land owners.
The obligations of SCK in relation to this joint operation include the following, among others:
• Provide financing for land development
• Provide the labor requirements of KSO Summarecon Serpong
• Acquire land ownership covered by the project.
The details of assets, liabilities, revenues and expenses of KSO Summarecon Serpong which
were proportionally consolidated to SCK’s financial statements (representing 70%) are as follows:
64
Total Before Elimination
2010 2009
Assets 657,670,569 553,489,672
Liabilities 657,670,569 553,489,672
Revenues 439,126,779 387,387,160
Expenses (48,798,983) (47,969,568)