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PT LIPPO KARAWACI Tbk

AND SUBSIDIARIES
Consolidated Financial Statements
For the 3 (three) Months Ended
March 31, 2011
(Unaudited)

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of March 31, 2011 and December 31, 2010
(Expressed In Full Rupiah, Unless Otherwise Stated)
ASSETS

Notes

Cash and Cash Equivalent


2.c, 2.d, 2.x, 3, 35, 37
Investments
2.c, 2.e, 2.x, 4, 9, 35, 37
Trade Accounts Receivable
2.c, 2.f, 2.x, 5, 35, 37
Third Parties
(Net of allowance for doubtful accounts of
Rp 44,890,560,027 and Rp 44,734,119,179
as of March 31, 2011 and December 31, 2010,
respectively)
Related Parties
2.f, 9
Other Accounts Receivable
2.c, 2.g, 2.s, 2.x, 6, 33.c
(Net of allowance for doubtful accounts of
35, 37
Rp 6,353,293,962 as of March 31, 2011 and
December 31, 2010, respectively)
Inventories
2.h, 2.m, 7
(Net of allowance for decline in inventories value of
Rp 39,505,683 as of March 31, 2011 and
December 31, 2010, respectively)
Prepaid Taxes and Expenses
2.i, 2.l, 2.u
Advances
8
Due from Related Parties
2.f, 2.x, 9, 37
(Net of allowance for doubtful accounts of
Rp 12,004,700,338 and Rp 12,255,328,472
as of March 31, 2011 and December 31, 2010,
respectively)
Deferred Tax Assets - Net
2.u, 17.b
Land for Development
2.h, 2.m, 10
Investment Properties
2.j, 2.l, 2.n, 11
(Net of accumulated depreciation of
Rp 51,319,209,509 and 46,246,106,530 as of
March 31, 2011 and December 31, 2010, respectively)
Property and Equipment
2.k, 2.l, 2.n, 12
(Net of accumulated depreciation of
Rp 873,112,642,461 and Rp 808,428,507,527 as of
March 31, 2011 and December 31, 2010, respectively)
Intangible Assets
2.o, 13
(Net of accumulated amortization of
Rp 136,554,621,872 and Rp 134,504,453,123 as of
March 31, 2011 and December 31, 2010, respectively)
Other Assets
2.c, 2.x, 14, 33.a, 35, 37
TOTAL ASSETS

March 31, 2011


Rp

December 31, 2010


Rp

3,277,153,195,959
907,170,881,773

3,660,087,191,120
534,223,727,332

610,505,712,110

656,604,474,581

5,790,632,641
216,759,785,228

5,083,171,699
141,624,955,538

7,125,618,664,830

7,068,539,007,802

304,924,801,512
628,050,375,478
9,146,393,783

255,637,355,778
699,295,415,957
9,373,247,862

65,664,305,025
1,009,590,875,905
513,457,542,021

72,636,806,041
953,759,187,924
517,985,863,654

1,422,866,081,050

1,206,374,544,429

211,416,101,400

104,623,556,841

315,716,269,659

269,536,413,368

16,623,831,618,374

16,155,384,919,926

See the Accompanying Notes which are an integral part


of these Consolidated Financial Statements.

Final Draft - 5/6/2011 4:18:20 PM

paraf:

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Continued)
As of March 31, 2011 and December 31, 2010
(Expressed In Full Rupiah, Unless Otherwise Stated)
LIABILITIES AND EQUITY

Notes

LIABILITIES
Loans
2.c,2.m,2.p, 2.s, 2.x,
Third Parties
15, 35, 37
Trade Accounts Payable
2.c, 2.x, 35, 37
Third Parties
Related Party
2.f, 9
Other Accounts Payable
2.c, 2.x, 35, 37
Accrued Expenses
2.c, 2.t, 2.x, 16, 33.i, 35, 37
Taxes Payable
2.u, 17.c
Advance from Customers
2.t, 2.x, 18, 37
Customer Deposit
2.x, 37
Deferred Income
2.f, 2.t, 9, 19
Obligations Under Finance Lease
2.l
Due to Related Parties
2.f, 2.x, 9, 37
Deferred Gain on Sale and Leaseback Transactions
2.l, 20, 33.b
Estimated Liabilities on Employees Benefits
2.q, 21
Total Liabilities
EQUITY
Equity attributable to the owners of parent
Capital Stock
Par Value of Rp 100 per share
Authorized Capital - 64,000,000,000 shares
Issued and Fully Paid - 21,627,689,619 shares
Additional Paid in Capital - Net
Difference in Value from Restructuring Transactions
between Entities Under Common Control - Net
Unrealized Gain on Changes in Fair Value of
Available-for-Sale Financial Assets
Difference from Foreign Currency Translations
Retained Earnings
Appropriated
Unappropriated

March 31, 2011


Rp

December 31, 2010


Rp

3,481,452,093,013

3,375,862,742,114

199,882,031,476
8,331,926,427
145,780,909,912
574,077,845,705
203,309,563,410
1,768,790,496,362
31,045,522,853
899,860,852,054
14,871,319,687
668,827,698,544
117,089,448,839
8,113,319,708,281

265,820,833,435
9,710,280,000
194,951,414,425
487,353,660,423
202,293,996,406
1,678,589,772,974
27,417,395,136
910,929,546,289
3,860,271
10,307,468,479
695,637,180,197
117,089,448,839
7,975,967,598,988

2,162,768,961,900
3,238,912,357,453

2,162,768,961,900
3,244,737,189,310

2.b, 2.r, 24

19,535,347,265

19,535,347,265

2.e, 2.x, 4.a, 25, 37


2.c

154,161,598,785
5,364,434,660

25,583,562,051
3,281,827,017

4,000,000,000
2,431,246,384,606
8,015,989,084,669
494,522,825,424
8,510,511,910,093

4,000,000,000
2,250,001,459,123
7,709,908,346,666
469,508,974,272
8,179,417,320,938

16,623,831,618,374

16,155,384,919,926

22
23

Non-controlling Interest
Total Equity

2.b

TOTAL LIABILITIES AND EQUITY

See the Accompanying Notes which are an integral part


of these Consolidated Financial Statements.

Final Draft - 5/6/2011 4:18:20 PM

paraf:

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the 3 (three) Months Ended March 31, 2011 and 2010
(Expressed In Full Rupiah, Unless Otherwise Stated)
Notes

March 31, 2011


Rp

March 31, 2010


Rp

2.f, 2.t, 9, 27

881,773,348,954

705,379,985,617

2.t, 28

503,524,316,781

382,524,334,336

378,249,032,173

322,855,651,281

(45,732,289,475)
(143,701,862,683)
35,860,388,935
11,792,633,139
19,090,000
(2,323,660,741)
(9,926,335,766)
(20,289,447,808)
450,301,991

(33,825,687,964)
(137,185,858,472)
7,229,972,922
(12,796,561,103)
153,042,452
4,041,204,617
(10,169,541,566)
4,297,320,217
1,223,746,895

204,397,849,765

145,823,289,279

(36,309,667,486)
(6,972,501,016)
(43,282,168,502)

(20,994,748,133)
7,291,949,384
(13,702,798,749)

PROFIT FOR THE PERIOD

161,115,681,263

132,120,490,530

OTHER COMPREHENSIVE INCOME, NET OF TAX


Unrealized Gain on Changes in Fair Value
of Available-for-Sale Financial Assets
Adjustment on Adoption of PSAK No. 22 (revised 2010)
Difference from Foreign Currency Translations
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAX

128,578,036,734
45,143,095,372
2,082,607,643
175,803,739,749

5,319,744,802
-646,232,822
5,965,977,624

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

336,919,421,012

138,086,468,154

Profit Attributable to:


Owners of Parent Company
Non-controlling Interest

136,101,830,111
25,013,851,152

113,179,713,133
18,940,777,397

161,115,681,263

132,120,490,530

311,905,569,860
25,013,851,152

119,145,690,757
18,940,777,397

336,919,421,012

138,086,468,154

6.29

6.54

NET SALES, SERVICES AND OTHER REVENUES


COST OF SALES AND SERVICES
GROSS PROFIT
Distribution Expenses
General and Administrative
Gain on Foreign Exchange - Net
Interest Income (Expense) - Net
Gain on Disposal of Property and Equipment
Penalties Income (Expenses) - Net
Amortization Expenses - Net
Others - Net
Equity in Net Earning of Associates

2.t, 29.a
2.t, 29.b
2.c
31
2.k, 12
30
2.l, 2.o, 2.x
2.e, 2.x, 4.b

INCOME BEFORE INCOME TAX EXPENSE


2.u, 17.a

INCOME TAX (EXPENSE) BENEFIT


Current
Deferred
Total Income Tax Expense

2.b

Comprehensive Income Attributable to:


Owners of Parent Company
Non-controlling Interest

2.b

BASIC EARNINGS PER SHARE

2.v, 32

See the Accompanying Notes which are an integral part


of these Consolidated Financial Statements.

Final Draft - 5/6/2011 4:18:20 PM

paraf:

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the 3 (three) Months Ended March 31, 2011 and 2010
(Expressed In Full Rupiah, Unless Otherwise Stated)
Notes

Issued and Fully


Paid in Capital

Rp

1,730,215,169,500 1,304,222,206,548

BALANCE AS OF DECEMBER 31, 2009


Unrealized Gain on Changes in Fair Value
of Available-for-Sale Financial Assets
Difference from Foreign Currency Translations

Additional Paid Difference in Value


Unrealized
in Capital - Net from Restructuring Gain (Loss) on
Transactions
Changes in Fair
between
Value of
Entities Under
Available-forCommon Control- Sale Financial
Net
Assets
Rp
Rp
Rp
19,535,347,265

58,597,260,712

Difference
from Foreign
Currency
Translations

Retained Earnings

Rp

Total

Non-controlling
Interest

Total
Equity

Rp

Rp

Appropriated

Unappropriated

Rp

Rp

Rp

(3,814,354,758)

3,000,000,000

1,775,485,869,998

4,887,241,499,265

401,690,095,653

5,288,931,594,918

2.e, 2.x, 4.a

--

--

--

5,319,744,802

--

--

--

5,319,744,802

--

5,319,744,802

2.c

--

--

--

--

646,232,822

--

--

646,232,822

--

646,232,822

--

--

--

--

--

--

113,179,713,133

113,179,713,133

18,940,777,397

132,120,490,530

BALANCE AS OF MARCH 31, 2010

1,730,215,169,500 1,304,222,206,548

19,535,347,265

63,917,005,514

(3,168,121,936)

3,000,000,000

1,888,665,583,131

5,006,387,190,022

420,630,873,050

5,427,018,063,072

BALANCE AS OF DECEMBER 31, 2010

2,162,768,961,900 3,244,737,189,310

19,535,347,265

25,583,562,051

3,281,827,017

4,000,000,000

2,250,001,459,123

7,709,908,346,666

469,508,974,272

8,179,417,320,938

Net Income

Unrealized Gain on Changes in Fair Value


of Available-for-Sale Financial Assets

2.e, 2.x, 4.a

--

--

--

128,578,036,734

--

--

--

128,578,036,734

--

128,578,036,734

--

(5,824,831,857)

--

--

--

--

--

(5,824,831,857)

--

(5,824,831,857)

--

--

--

--

--

--

45,143,095,372

45,143,095,372

--

45,143,095,372

--

--

--

--

2,082,607,643

--

--

2,082,607,643

--

2,082,607,643

--

--

--

--

--

--

136,101,830,111

136,101,830,111

25,013,851,152

161,115,681,263

2,162,768,961,900 3,238,912,357,453

19,535,347,265

154,161,598,785

5,364,434,660

4,000,000,000

2,431,246,384,606

8,015,989,084,669

494,522,825,424

8,510,511,910,093

Limited Public Offering III - Net


Adjustment on Adoption of PSAK No. 22
(revised 2010)
Difference from Foreign Currency Translations

2.c

Net Income
BALANCE AS OF MARCH 31, 2011

See the Accompanying Notes which are an integral part


of these Consolidated Financial Statements.

Final Draft - 5/6/2011 4:18:20 PM

Paraf:

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS
For the 3 (three) Months Ended March 31, 2011 and 2010
(Expressed In Full Rupiah, Unless Otherwise Stated)
March 31, 2011

March 31, 2010

Rp

Rp

CASH FLOWS FROM OPERATING ACTIVITIES


Collection from Customers
Payment to Suppliers and Third Parties
Payment to Employees
Cash Provided from Operations
Interest Payments - Net
Taxes Payment
Net Cash Flows Provided by (Used in) Operating Activities

1,052,587,801,138
(955,812,032,520)
(82,461,229,524)
14,314,539,094
6,618,733,095
(120,874,127,045)
(99,940,854,856)

675,711,038,908
(382,759,558,000)
(80,090,276,362)
212,861,204,546
(134,562,650,392)
(71,028,699,269)
7,269,854,885

CASH FLOWS FROM INVESTING ACTIVITIES


Redemption of Promissory Note
Dividend Receipt
Proceeds from Disposal of Property and Equipment
Placement of Restricted Funds
Acquisition of Property and Equipment and Investment Properties
Placement of Investments
Net Cash Flows Used in Investing Activities

4,495,500,000
760,352,741
75,574,697
(20,048,149,241)
(121,051,281,326)
(242,340,899,854)
(378,108,902,983)

9,400,000,000
8,420,653,991
222,664,250
(9,093,392,631)
(37,039,500,215)
-(28,089,574,605)

CASH FLOWS FROM FINANCING ACTIVITIES


Net Proceed from Bond Issuance
Cash Received from Related Parties
Repayment of Loans
Net Cash Flows Provided by (Used in) Financing Activities

568,970,232,006
5,041,333,421
(454,622,201,824)
119,389,363,603

-3,767,816,415
(45,508,940,664)
(41,741,124,249)

NET DECREASE IN CASH AND CASH EQUIVALENT

(358,660,394,236)

(62,560,843,969)

(24,273,600,925)

(39,982,038,329)

BEGINNING BALANCE OF CASH AND CASH EQUIVALENT

3,660,087,191,120

1,533,259,921,843

ENDING BALANCE OF CASH AND CASH EQUIVALENT

3,277,153,195,959

1,430,717,039,545

Cash and Cash Equivalent at the End of the Period consist of:
Cash on Hand
Cash in Banks
Time Deposits

5,422,387,953
645,361,416,830
2,626,369,391,176

5,371,351,736
137,984,473,425
1,287,361,214,384

3,277,153,195,959

1,430,717,039,545

Effect of Foreign Exchanges on Cash and Cash Equivalent at the End of the Period

Total

See the Accompanying Notes which are an integral part


of these Consolidated Financial Statements.

Final Draft - 5/6/2011 4:18:20 PM

Paraf:

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
1.

General
1.a. The Companys Establishment
PT Lippo Karawaci Tbk (the Company) was established under the name of PT Tunggal Reksakencana on
October 15, 1990 based on Deed of Establishment No. 233, made in presence of Misahardi
Wilamarta, S.H., a notary in Jakarta. The deed of establishment was approved by the Minister of Justice
of the Republic Indonesia in his Decree No. C2-6974.HT.01.01.TH.91 dated November 22, 1991 and
published in the State Gazette No. 62, Supplement No. 3593 on August 4, 1992. The Companys article of
association have been amended several times, the latest by the Deed of Extraordinary General Meeting
of Shareholders Resolution No. 12 dated March 9, 2011, made in presence of Unita Christina Winata,
S.H., a notary in Tangerang, concerning the changes of the Company's scope of activities. The deed was
in the process of obtaining approval from the Minister of Law and Human Rights of the Republic of
Indonesia.
In accordance with article 3 of the Companys articles of association, the Companys scope of activities
include real estate, urban development, land purchasing and clearing, land cut and fill, land development
and excavation; infrastructure development; planning, developing, leasing, selling, and managing of
buildings, houses, offices and industrial estates, hotels, hospitals, commercial centers, sports centers as
well as supporting infrastructure, including but not limited to golf courses, club houses, restaurants, other
entertainment centers, medical laboratories, medical pharmacies and related facilities, directly or by
investment or capital divestment; build and operate environment infrastructure, build and manage public
facilities as well as accommodation services, operating activities in services consisting of public
transportation, security services and other supporting services, except for legal and taxation services.
As at the reporting date, the main activities of the Company are conducting businesses related to Urban
Development, Large Scale Integrated Development, Retail Malls, Healthcare, Hospitality and
Infrastructure, and Property and Portfolio Management.
The Company is domiciled in 7 Boulevard Palem Raya # 22-23, Menara Matahari, Lippo Karawaci
Central, Tangerang 15811, Banten - Indonesia.
1.b. The Companys Public Stock Offering
The Companys initial public offering of 30,800,000 shares was declared effective by the Chairman of
Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) (formerly Capital Market
Supervisory Board) in his Decree No. S-878/PM/1996 dated June 3, 1996, and was listed at Indonesia
Stock Exchange on June 28, 1996.
Subsequently, the Company offered 607,796,000 shares to its existing stockholders through Limited
Public Offering I, as approved by the Decree of the Chairman of Bapepam-LK in his letter
No. S-2969/PM/1997 dated December 30, 1997. These shares were listed in Indonesia Stock Exchange
on January 16, 1998.
On July 30, 2004, the Company acquired and merged with several companies. As part of the merger, the
Company issued 1,063,275,250 new shares, and then the Companys total outstanding shares became
2,050,943,750 shares. The increase of authorized, issued and fully paid capital was approved by the
Minister of Law and Human Rights of the Republic of Indonesia in his Decree
No. C-19039.HT.01.04.Th.04 dated July 30, 2004.

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
In 2004, the Company offered 881,905,813 common shares at par value of Rp 500 to the shareholders
through Limited Public Offering II in connection with Preemptive Rights Issuance and issued 529,143,440
Warrants Series I as a compliment to shareholders that exercised their rights in the Limited Public
Offering II. This offering was approved by the Decree of the Chairman of Bapepam-LK in his Letter
No. S-3357/PM/2004 dated October 29, 2004. These shares were listed in Indonesia Stock Exchange on
January 20, 2005.
On July 28, 2006, the Company exercised stock split from one share to two shares. The outstanding
shares as of December 31, 2006 were 5,871,017,072 shares and have been listed in Indonesia Stock
Exchange.
Based on Deed of Extraordinary General Meeting of Shareholders (EGMS) Resolution No. 02 dated May
3, 2010 made in presence of Unita Christina Winata, S.H., a notary in Tangerang, as amended by the
Deed of EGMS Resolution No. 13 dated March 9, 2011 made in presence of same notary, the
shareholders approved issuance of new shares in connection with Non Preemptive Rights Issuance (PRI)
with maximum 10% of paid-in capital or 2,162,768,961 shares. This Non PRI can be exercised all at once
or partially in 2 years after the approval of EGMS.
On December 26, 2007, the Company exercised stock split from Rp 250 per share to Rp 100 per share.
The outstanding shares as of December 31, 2007 were 17,302,151,695 shares and have been listed in
Indonesia Stock Exchange.
In December 2010, the Company offered 4,325,537,924 common shares at par value of Rp 100 to the
shareholders through Limited Public Offering III. This offering has received an effective notice of
registration statement through the letter of the Chairman of Bapepam-LK No. S-10674/BL/2010, dated
November 29, 2010 and was approved by the shareholder through a resolution of the EGM on same date.
On December 29, 2010 these shares were listed in Indonesia Stock Exchange.
1.c. The Companys Structure
The Company has ownership of more than 50%, either direct or indirectly, of the following subsidiaries:
Total Assets
Subsidiary

Lippo Karawaci Finance B. V.


Sigma Capital Pte Ltd dan Subsidiary
Sigma Trillium Pte Ltd
Lippo Karawaci Corporation Pte. Ltd. and Subsidiaries
LK Reit Management Pte. Ltd. and Subsidiary
Bowsprit Capital Corp. Ltd.
Jesselton Investment Ltd. and Subsidiaries

Domicile

Netherlands
Singapore
Singapore
Singapore
Singapore
Singapore
Malaysia

Peninsula Investment Ltd. and Subsidiary

Malaysia

Lippo Mappletree Indonesia RTM Ltd

Singapore

PT Primakreasi Propertindo and Subsidiaries


PT Mujur Sakti Graha and Subsidiaries
PT Surplus Multi Makmur and Subsidiary
PT Arta Sarana

Tangerang
Tangerang
Jakarta
Bandung

PT PuriParagon

Tangerang

PT PluitParagon Mall

Tangerang

PT BaliParagon Mall

Tangerang

Main Business
Activity

Investment, Trading
and Services
Investment
Trading
Investment, Trading
and Services
Investment, Trading
and Services
Investment, Trading
and Services
Investment, Trading
and Services
Investment, Trading
and Services
Investment, Trading
and Services
Real Estate
Real Estate
Real Estate
Investment, Trading
and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services

Ownership
Percentage
Directly

Ownership
Percentage
Indirectly

Year of
Operation
Started

March 31, 2011

December 31, 2010

Rp

Rp

100.00%

--

2006

20,608,254,354

632,579,344,913

100.00%
-100.00%

-100.00%
--

----

3,536,235,205,384
3,625,768,364,233
87,519,686,550

2,476,049,606,236
2,480,608,298,041
79,187,319,423

--

100.00%

--

87,519,693,456

79,224,388,113

--

80.00%

2006

87,519,686,550

79,224,381,132

100.00%

--

--

133,748,139,168

124,035,378,178

--

100.00%

--

133,748,147,877

124,035,387,169

--

60.00%

2007

133,630,189,168

123,917,428,178

100.00%
----

-99.83%
90.00%
81.00%

-----

1,464,315,812,759
65,090,898,617
22,165,883,460
42,324,084,900

1,457,840,502,027
65,094,751,048
22,073,769,891
42,233,313,149

--

99.83%

--

586,225,942

587,202,942

--

99.83%

--

10,165,432,000

587,672,942

--

99.83%

--

586,869,941

587,677,941

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Subsidiary

PT Kuta BeachParagon and Subsidiaries


PT Graha Buana Utama and Subsidiaries
PT Berkat Langgeng Jaya and Subsidiary
PT Pamor Paramita Utama

Main Business
Activity

Ownership
Percentage
Directly

Ownership
Percentage
Indirectly

Year of
Operation
Started

Tangerang

Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Services
Development and
Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Real Estate
Development,
Trading and Services
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate

--

99.83%

--

103,463,070,352

103,637,536,035

--

99.83%

--

102,488,197,859

102,663,055,542

--

99.83%

--

102,449,617,359

102,624,475,042

--

80.02%

--

92,065,138,934

92,239,996,617

--

99.83%

--

581,902,441

587,677,941

--

99.83%

--

582,783,691

587,672,941

--

99.83%

--

--

587,677,941

--

99.83%

--

587,014,941

587,672,941

--

99.83%

--

1,207,258,295

1,207,258,295

--

99.83%

--

582,050,941

582,772,941

--

99.83%

--

5,001,187,000

5,001,945,000

--

99.83%

--

10,001,187,000

10,001,945,000

--

99.83%

--

10,002,887,000

10,001,945,000

--

99.83%

--

5,002,887,000

5,001,945,000

---

99.83%
99.83%

---

276,787,523,926
276,045,223,478

283,592,670,223
282,851,627,569

--

99.83%

--

154,332,063,370

169,332,075,861

--

99.83%

--

594,290,000

594,548,000

--

99.83%

--

600,000,000

600,000,000

---

99.83%
100.00%

2003
--

1,008,389,782,846
3,985,109,782

1,001,295,265,806
2,185,114,678

--100.00%
---

99.83%
99.83%
-100.00%
100.00%

----1997

577,586,250
578,075,000
2,126,477,284,452
571,929,542
313,461,214,624

577,444,250
578,147,000
2,049,794,325,694
572,637,542
308,795,832,869

Tangerang
Tangerang
Jakarta

PT Titian Semesta Raya (formerly PT PejatenParagon Mall)

Tangerang

PT Tatabangun Nusantara (formerly PT CibuburParagon Mall)

Tangerang

PT PalembangParagon Mall

Tangerang

PT MedanParagon Mall

Tangerang

PT Multiguna Selaras Maju (formerly PT BogorParagon Mall)

Tangerang

PT Lintas Lautan Cemerlang (formerly PT ThamrinParagon Mall)

Tangerang

PT SurabayaParagon Mall

Tangerang

PT SemarangParagon Mall

Tangerang

PT LampungParagon Mall

Tangerang

PT PontianakParagon Mall

Tangerang

PT Graha Solusi Mandiri and Subsidiaries


PT Wijaya Wisesa Propertindo and Subsidiary
PT Simprug Arteri Realti

Jakarta
Jakarta
Jakarta

PT Kharisma Ekacipta Persada

Tangerang

PT Cipta Mahakarya Gemilang

Tangerang

PT Mandiri Cipta Gemilang


PT Jaya Makmur Bersama

Total Assets
March 31, 2011
December 31, 2010

Domicile

Jakarta
Jakarta

PT Grand Villa Persada


PT Mega Proyek Pertiwi
PT Sentra Dwimandiri and Subsidiaries
PT Prudential Development
PT Muliasentosa Dinamika (has 4.48% ownership
in PT Lippo Cikarang Tbk)
PT Sentra Realtindo Development (has 4.62%
ownership in PT Lippo Cikarang Tbk) and
Subsidiaries
PT Darma Sarana Nusa Pratama and Subsidiary
PT Tata Mandiri Daerah Villa Permata

Tangerang
Tangerang
Jakarta
Jakarta
Tangerang

PT Golden Pradamas and Subsidiaries


PT Mulia Bangun Semesta and Subsidiary
PT Villa Permata Cibodas
PT Puncak Resort International and Subsidiaries
PT Sentosa Seksama
PT Purimegah Swarga Buana
PT Adigraha Rancang Sempurna
PT Pesanggrahan Suripermata Agung
PT Dona Indo Prima
PT Sukmaprima Sejahtera
PT Sentra Asritama Realty Development

Tangerang
Jakarta
Tangerang
Cianjur
Cianjur
Cianjur
Cianjur
Cianjur
Cianjur
Cianjur
Tangerang

PT Sentra Graha Mandiri


PT Tata Mandiri Daerah Lippo Karawaci

Tangerang
Tangerang

PT Saptapersada Jagatnusa
PT Sejatijaya Selaras
PT Surya Makmur Alam Persada
PT Bahtera Pratama Wirasakti
PT Sentra Office Realty
PT Dinamika Intertrans
PT Imperial Karawaci Golf
PT Agung Sepadan
PT Prudential Townhouse Development
PT Wahana Tatabangun Cemerlang Matahari
PT Wahana Tatabangun Cemerlang

Tangerang
Jakarta
Jakarta
Jakarta
Tangerang
Tangerang
Tangerang
Tangerang
Jakarta
Jakarta
Jakarta

Rp

Rp

Tangerang

Home
Improvement

--

100.00%

2001

85,786,550,673

56,832,112,554

Tangerang
Tangerang

Real Estate
Town
Management
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Installation and
Water Treatment
Real Estate
Town
Management
Bowling
Real Estate
Real Estate
Real Estate
Building Management
Transportation
Golf
Real Estate
Real Estate
Real Estate
Real Estate

---

52.70%
42.16%

1997
2001

114,468,480,647
28,409,560

114,275,570,952
30,825,310

------------

100.00%
99.98%
99.98%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%

-2002
1995
1994
1994
1994
1994
1994
--1994

205,353,158,704
175,296,724,120
108,979,177,758
75,782,211,397
23,234,729,364
8,778,457,151
7,206,315,631
1,974,638,141
50,000,000
50,000,000
85,105,692,997

224,753,019,752
194,323,576,784
131,875,246,423
75,343,212,255
23,234,895,364
8,778,623,151
7,206,481,631
1,974,804,141
50,000,000
50,000,000
81,281,303,685

---

100.00%
100.00%

-1999

33,316,557,392
122,867,153,072

33,316,901,392
117,291,870,668

------------

100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%

1998
---1998
1994
------

10,229,072,988
18,630,981,118
20,286,613,984
15,741,663,163
714,765,952
469,816,008
479,137,000
2,547,437,804
85,192,385
17,832,808
18,366,066

10,229,072,988
18,631,139,118
20,286,871,984
15,741,785,860
714,765,952
501,493,395
479,137,000
2,473,198,654
91,219,153
17,754,808
18,624,066

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Subsidiary

Domicile

Main Business
Activity

Ownership
Percentage
Directly

Ownership
Percentage
Indirectly

Year of
Operation
Started

PT Paragon City

Tangerang

--

100.00%

--

Bridgewater International Ltd and Subsidiaries

Seychelles

--

100.00%

2006

PT Lippo Karawaci Infrastructure & Utilitas Division

Tangerang

Real Estate and


Trading
Investment
and Trading
Construction and
Services
Investment, Trading
and Services
Investment, Trading
and Services
Investment, Trading
and Services
Investment, Trading
and Services
Investment, Trading
and Services
Investment, Trading
and Services
Services
Trading
Development,
Trading and Services
Real Estate
Real Estate
Real Estate
Trading
Trading

--

100.00%

--

1,320,607,110,350

1,214,423,387,202

--

233,101,000

233,199,000

100.00%

--

65,610,110,316

66,859,401,774

--

100.00%

--

82,882,511

150,429,533

--

100.00%

--

41,442,906

75,216,435

--

100.00%

--

20,724,906

37,611,708

--

100.00%

--

41,442,906

75,216,435

--

100.00%

--

20,724,906

37,611,708

100.00%
---

-100.00%
100.00%

----

3,625,562,022,791
113,511,250
1,280,629,185,224

3,635,476,380,002
113,758,250
1,222,664,290,150

------

92.00%
92.00%
92.00%
100.00%
100.00%

-2005
----

1,280,553,461,614
1,224,422,837,161
58,359,212,267
238,323,599,768
233,405,893,944

1,222,588,508,657
1,165,467,237,362
58,359,253,960
236,147,769,530
231,229,807,461

----------

100.00%
100.00%
80.00%
72.00%
100.00%
100.00%
95.00%
94.68%
100.00%

1992*
1993*
---1994*
-2004
--

294,367,213
631,168,019
2,182,517,119
-73,224,494,618
73,205,480,271
132,703,876,244
223,615,004,637
123,317,765,917

294,850,466
631,364,667
5,750,735
3,329,600
73,447,484,301
73,428,299,001
256,072,204,309
223,585,477,468
131,624,957,928

Jakarta
Jakarta
Makassar

Trading
Services
Services
Services
Trading
Trading and Services
Trading and Services
Real Estate
Accommodation
Services
Trading and Services
Trading and Services
Real Estate

----

100.00%
100.00%
100.00%

--2002

75,701,258,956
1,368,910,542
70,416,744,736

76,903,130,556
1,370,068,764
70,787,135,544

Makassar
Jakarta
Jakarta
Jakarta
Jakarta
Tangerang
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta

Trading and Services


Services
Trading
Real Estate
Trading
Trading and Services
Services
Trading
Trading
Real Estate
Services
Trading
Trading
Services
Real Estate
Real Estate
Hotel and Tourism

------------------

100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
80.00%
80.00%
80.00%

2002
2003
---1992*
1998*
--2004
---2005
-2005
--

187,094,671
17,515,672,319
114,749,933,891
128,234,743,707
24,632,420
2,469,548,150
369,814,852
79,636,540
244,045,141,100
244,045,141,100
-5,091,000
277,455,898,395
277,366,081,716
89,326,415,644
89,365,103,144
10,215,516,893

198,082,657
18,115,009,413
127,241,295,095
127,241,295,095
236,147,769,530
2,468,975,084
369,814,852
79,786,676
242,918,229,385
242,918,229,385
-5,199,000
278,042,663,904
277,952,759,699
88,698,163,627
88,731,137,627
10,096,848,000

Jakarta
Jakarta

---

80.00%
80.00%

---

1,746,841,917
493,609,200

1,550,275,017
495,000,000

--

100.00%

2005

415,344,267,782

416,908,133,063

Sidoarjo
Sidoarjo
Surabaya

Services
Real Estate and
Urban Development
Real Estate and
Urban Development
Trading
Trading and Services
Accommodation Services

----

85.00%
85.01%
99.99%

-2005
--

418,064,595,351
418,542,737,575
2,000,000,000

419,628,357,708
419,931,340,307
2,000,000,000

Jakarta
Jakarta

Trading
Real Estate

---

100.00%
100.00%

---

109,419,042
2,228,510,900

109,591,042
2,227,827,000

Evodia Strategic Investment Ltd. and Subsidiaries

Malaysia

Globalink Investments Pte. Ltd. and Subsidiary


Fortuna Capital Pte. Ltd.
PT Wisma Jatim Propertindo and Subsidiaries
PT Maharama Sakti
PT KemangParagon Mall and Subsidiaries
PT Wahana Usaha Makmur and Subsidiaries
PT Almaron Perkasa
PT Adhi Utama Dinamika
PT Lipposindo Abadi and Subsidiaries
PT Kemuning Satiatama (has 42.20% ownership in
PT Lippo Cikarang Tbk) and Subsidiaries
PT Megachandra Karyalestari
PT Prudential Apartment Development
PT Sentra Kharisma Indah and Subsidiary
PT. Sentra Goldhill Bussinesspark
PT Carakatama Dirgantara and Subsidiary
PT Prudential Hotel Development
PT Ariasindo Sejati and Subsidiaries
PT Unitech Prima Indah and Subsidiary
PT Karya Cipta Pesona
PT Metropolitan Leisure and Subsidiaries
PT Kurniasindo Sejahtera
PT Graha Tata Cemerlang Makassar (has 0.34%
ownership in PT Lippo Cikarang Tbk)
PT Guna Tata Carakatama
PT Lippo Land Cahaya Indonesia
PT Lipposindo and Subsidiary
PT Pendopo Niaga
PT Larasati Anugerah
PT Bathara Brahma Sakti
PT Realty Limaribu
PT Dwisindo Jaya
PT Lippo Vacation and Subsidiary
PT Jagat Pertala Nusantara
PT Wisma Sumut Propertindo
PT Mulia Mukti Persada Perkasa
PT Kemang Village and Subsidiaries
PT Menara Bhumimegah and Subsidiaries
PT Jaya Usaha Prima and Subsidiaries
PT Persada Mandiri Abadi and Subsidiaries
PT Kemang Village Management
(formerly PT Pesona Indah Lestari)
PT Prima Aman Sarana
PT Kemang Multi Sarana
PT Menara Perkasa Megah and Subsidiaries
PT Pelangi Cahaya Intan Makmur and Subsidiaries
PT Surya Mitra Jaya and Subsidiary
PT Citra Harapan Baru
PT Niaga Utama
PT Mitra Kasih Karunia

Rp
7,501,935,126

Malaysia

Key Capital Pte. Ltd.

Rp
7,501,727,126

Brightlink Capital Pte. Ltd.

Great Capital Pte. Ltd. and Subsidiary

Total Assets
March 31, 2011
December 31, 2010

Singapore
Singapore
Singapore
Singapore
Jakarta
Jakarta
Tangerang
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Tangerang
Jakarta
Jakarta
Medan

Jakarta

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Subsidiary

Domicile

PT Kreasi Megatama Gemilang and Subsidiary

Tangerang

PT Consulting & Management Service Division and Subsidary


PT Kreasi Gemilang Perkasa
(formerly PT BatamParagon Mall)
PT Saputra Karya

Tangerang
Tangerang

PT Grand Provita and Subsidiary


PT Grand Prima Propertindo
PT Pacific Sejahtera
PT Satriamandiri Idola Utama
PT Mahakaya Abadi
PT Persada Mandiri Dunia Niaga and Subsidiaries
PT Gapura Sakti Prima and Subsidiaries
PT Menara Megah Tunggal and Subsidiary
PT Trias Mitra Investama
PT Permata Agung Propertindo
PT Kencana Mitra Lestari

Tangerang
Tangerang
Tangerang
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta

PT Direct Power and Subsidiaries

PT Mitra Mulia Kreasi and Subsidiary

PT Bellanova Country Mall

PT Sarana Global Multindo and Subsidiaries

Jakarta

Jakarta

Jakarta

Bogor

Jakarta

PT Guna Sejahtera Karya and Subsidiaries

Jakarta

PT Citra Sentosa Raya and Subsidiaries

Jakarta

PT Gading Nusa Utama

Rosenet Limited and Subsidiaries

Seapejaten Pte. Ltd. and Subsidiary


PT Panca Permata Pejaten

Continental Investment Ltd.


PT Sandiego Hills Memorial Park and Subsidiary

PT Pengelola Memorial Park (formerly PT RiauParagon Mall)

Jakarta

British
Virgin
Island
Singapore
Jakarta

Malaysia
Tangerang

Tangerang

PT CB Commercial

Tangerang

PT Kemilau Karyacipta Persada

Tangerang

PT Bumi Indah Pertiwi

Tangerang

Main Business
Activity

Development,
Industry,
Agribusiness,
Transportation,
Trading and Services
Services
Development,
Trading and Services
Real Estate and
Urban Development
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Development,
Transportation
Trading and Services
Trading, Real Estate,
Industry, Printing,
Agribusiness,
Transportation
and Services
Development,
Industry, Mining,
Agribusiness,
Transportation
Trading and Services
Development,
Transportation
Trading and Services
Development,
Transportation
Trading and Services
Development,
Industry,
Agribusiness, Park
Trading and Services
Trading, Real Estate,
Industry,
Agribusiness,
Transportation
and Services
Trading,
Development,
Industry, Gardens,
Agribusiness
and Services
Investment

Investment
Trading,
Development and
Real Estate
Investment, Trading
and Services
Trading,
Development,
Transportation and
Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services

10

Ownership
Percentage
Directly

Ownership
Percentage
Indirectly

Year of
Operation
Started

March 31, 2011

December 31, 2010

Rp

Rp

--

100.00%

--

20,025,119,392

18,568,721,613

---

100.00%
99.83%

---

20,632,578,392
4,160,936,732

19,162,355,554
2,075,920,801

--

100.00%

--

62,306,847,752

51,767,789,172

------------

100.00%
65.00%
100.00%
100.00%
100.00%
100.00%
78.60%
55.02%
54.97%
100.00%
100.00%

------------

487,625,000
12,875,000
17,317,400
589,158,900
490,000,000
132,703,876,244
129,896,479,282
129,396,479,282
128,896,479,282
523,752,791
584,380,100

487,625,000
12,875,000
17,317,400
589,158,900
490,000,000
129,989,792,419
127,182,032,457
126,682,032,457
126,182,032,457
523,827,191
584,262,750

--

100.00%

--

114,749,933,891

115,150,774,145

--

80.00%

--

50,452,382,314

51,092,390,908

--

80.00%

--

50,356,274,314

50,996,024,908

--

100.00%

--

269,105,450,762

265,474,762,293

--

100.00%

--

269,062,863,910

265,431,266,774

--

100.00%

--

269,434,038,034

265,801,582,898

--

99.60%

--

3,149,233,900

3,149,343,900

--

100.00%

--

267,945,606,733

264,305,151,736

---

100.00%
100.00%

-2008

268,445,606,733
268,704,653,100

264,805,151,736
264,892,379,903

--

100.00%

--

21,772,500

22,477,500

--

100.00%

2006

309,667,774,094

309,426,625,564

--

100.00%

2010

587,339,941

588,715,941

--

100.00%

--

586,624,482

586,879,045

--

100.00%

--

2,466,893,000

2,467,151,000

--

100.00%

--

2,216,817,102

2,039,467,400

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Subsidiary

Domicile

PT Kreasi Megatama Gemilang and Subsidiary

Tangerang

PT Consulting & Management Service Division and Subsidary


PT Kreasi Gemilang Perkasa
(formerly PT BatamParagon Mall)
PT Saputra Karya

Tangerang
Tangerang

PT Grand Provita and Subsidiary


PT Grand Prima Propertindo
PT Pacific Sejahtera
PT Satriamandiri Idola Utama
PT Mahakaya Abadi
PT Persada Mandiri Dunia Niaga and Subsidiaries
PT Gapura Sakti Prima and Subsidiaries
PT Menara Megah Tunggal and Subsidiary
PT Trias Mitra Investama
PT Permata Agung Propertindo
PT Kencana Mitra Lestari

Tangerang
Tangerang
Tangerang
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta

PT Direct Power and Subsidiaries

PT Mitra Mulia Kreasi and Subsidiary

PT Bellanova Country Mall

PT Sarana Global Multindo and Subsidiaries

Jakarta

Jakarta

Jakarta

Bogor

Jakarta

PT Guna Sejahtera Karya and Subsidiaries

Jakarta

PT Citra Sentosa Raya and Subsidiaries

Jakarta

PT Gading Nusa Utama

Rosenet Limited and Subsidiaries

Seapejaten Pte. Ltd. and Subsidiary


PT Panca Permata Pejaten

Continental Investment Ltd.


PT Sandiego Hills Memorial Park and Subsidiary

PT Pengelola Memorial Park (formerly PT RiauParagon Mall)

Jakarta

British
Virgin
Island
Singapore
Jakarta

Malaysia
Tangerang

Tangerang

PT CB Commercial

Tangerang

PT Kemilau Karyacipta Persada

Tangerang

PT Bumi Indah Pertiwi

Tangerang

Main Business
Activity

Development,
Industry,
Agribusiness,
Transportation,
Trading and Services
Services
Development,
Trading and Services
Real Estate and
Urban Development
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Development,
Transportation
Trading and Services
Trading, Real Estate,
Industry, Printing,
Agribusiness,
Transportation
and Services
Development,
Industry, Mining,
Agribusiness,
Transportation
Trading and Services
Development,
Transportation
Trading and Services
Development,
Transportation
Trading and Services
Development,
Industry,
Agribusiness, Park
Trading and Services
Trading, Real Estate,
Industry,
Agribusiness,
Transportation
and Services
Trading,
Development,
Industry, Gardens,
Agribusiness
and Services
Investment

Investment
Trading,
Development and
Real Estate
Investment, Trading
and Services
Trading,
Development,
Transportation and
Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services

11

Ownership
Percentage
Directly

Ownership
Percentage
Indirectly

Year of
Operation
Started

March 31, 2011

December 31, 2010

Rp

Rp

--

100.00%

--

20,025,119,392

18,568,721,613

---

100.00%
99.83%

---

20,632,578,392
4,160,936,732

19,162,355,554
2,075,920,801

--

100.00%

--

62,306,847,752

51,767,789,172

------------

100.00%
65.00%
100.00%
100.00%
100.00%
100.00%
78.60%
55.02%
54.97%
100.00%
100.00%

------------

487,625,000
12,875,000
17,317,400
589,158,900
490,000,000
132,703,876,244
129,896,479,282
129,396,479,282
128,896,479,282
523,752,791
584,380,100

487,625,000
12,875,000
17,317,400
589,158,900
490,000,000
129,989,792,419
127,182,032,457
126,682,032,457
126,182,032,457
523,827,191
584,262,750

--

100.00%

--

114,749,933,891

115,150,774,145

--

80.00%

--

50,452,382,314

51,092,390,908

--

80.00%

--

50,356,274,314

50,996,024,908

--

100.00%

--

269,105,450,762

265,474,762,293

--

100.00%

--

269,062,863,910

265,431,266,774

--

100.00%

--

269,434,038,034

265,801,582,898

--

99.60%

--

3,149,233,900

3,149,343,900

--

100.00%

--

267,945,606,733

264,305,151,736

---

100.00%
100.00%

-2008

268,445,606,733
268,704,653,100

264,805,151,736
264,892,379,903

--

100.00%

--

21,772,500

22,477,500

--

100.00%

2006

309,667,774,094

309,426,625,564

--

100.00%

2010

587,339,941

588,715,941

--

100.00%

--

586,624,482

586,879,045

--

100.00%

--

2,466,893,000

2,467,151,000

--

100.00%

--

2,216,817,102

2,039,467,400

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Subsidiary

PT Lippo Cikarang Tbk and Subsidiaries


PT Great Jakarta Inti Development

Domicile

Main Business
Activity

Ownership
Percentage
Directly

Ownership
Percentage
Indirectly

Year of
Operation
Started

Bekasi
Bekasi

Real Estate
Town
Management
and Real Estate
Town
Management
Real Estate
Public
Transportation
Recreation
Services
Property Management
Clean and Waste
Water Treatment
Trading
Trading
Investment

---

51.64%
51.64%

1989
1992

1,731,898,344,683
130,389,015,827

1,670,186,556,526
130,670,667,728

--

51.60%

2010

17,151,894,436

14,768,516,629

---

51.64%
51.64%

-1993

16,980,287,500
47,332,424

16,980,287,500
30,261,195

--

51.38%

1993

3,984,887,280

3,817,135,487

---

99.00%
99.00%

2011
2011

1,370,685,242
9,500,873,890

---

----

100.00%
100.00%
100.00%

----

6,790,208,086
16,930
17,418

6,790,208,086
16,930
17,982

PT Tunas Pundi Baru

Bekasi

PT Erabaru Realindo
PT Dian Citimarga

Bekasi
Bekasi

PT Kreasi Dunia Keluarga

Bekasi

PT Chandra Mulia Adhidharma


PT Tirtasari Nirmala

Bekasi
Bekasi

March 31, 2011


Rp

December 31, 2010


Rp

Pan Asian Investment Ltd. and Subsidiary


Crowmwell Investment Ltd.
Indigo Investment Fund Ltd.

Vanuatu
Vanuatu
Cook Island

Banksia Holdings Ltd.

Cook Island

Trading

--

100.00%

--

8,709

8,991

PT Megapratama Karya Persada and Subsidiaries

Tangerang

Investment, Trading
and Services
Healthcare
Healthcare
Development,
Trading, Industry
and Services
Development,
Trading and Services
Healthcare
Development,
Transportation,
Trading and Services
Healthcare
Development,
and Services
Healthcare
Development,
and Services
Healthcare
Healthcare
Trading and Services
Development,
Transportation,
Trading and Services
Healthcare
Development,
Transportation,
Trading and Services
Development,
Transportation
Trading and Services
Development and
Services
Services
Healthcare
Services
Healthcare
Investment, Trading
and Services
General
Restaurant, Bar,
Catering, Etc
Management
Services
Services
Services
Services
Services
Services
Services

100.00%

--

--

923,914,218,119

778,429,334,016

----

100.00%
100.00%
100.00%

----

923,789,104,479
2,833,255,695
2,855,311,500

778,303,291,607
2,411,189,792
2,855,311,500

--

100.00%

--

2,686,843,025

2,686,843,025

---

71.00%
100.00%

---

849,214,066
198,815,329,521

849,214,066
297,312,374,317

---

85.50%
100.00%

2002
--

198,815,329,521
86,923,798,218

297,068,375,317
--

---

83.00%
100.00%

2008
--

85,557,680,612
88,158,401,551

-99.99%
---

79.61%
0.01%
100.00%
100.00%

2007
----

51,024,790,782
141,132,646,654
27,682,523,242
33,224,036,989

-80,765,165,404
26,848,599,088
27,287,229,822

---

100.00%
100.00%

2005
--

3,154,512,057
26,527,582,500

3,823,569,397
26,653,057,078

--

100.00%

--

46,880,849,700

49,048,805,314

--

100.00%

--

42,045,005,716

40,925,150,010

0.01%

99.99%

--

18,918,500

20,898,000

--

100.00%

--

18,918,500

19,793,000

100.00%

--

--

579,931,300

579,931,300

0.01%
--

99.99%
100.00%

1998
1989

2,406,920
947,076,544

2,578,920
859,400,618

--

100.00%

1998

11,795,819,064

10,977,241,804

-------

100.00%
100.00%
100.00%
100.00%
100.00%
100.00%

-------

590,394,178
590,588,000
590,708,062
594,994,449
1,918,852,364
584,200,500

590,648,178
590,851,000
590,971,062
595,248,449
1,771,451,047
584,463,500

PT Siloam International Hospitals and Subsidiaries


PT Aritasindo Permai Semesta
PT Perdana Kencana Mandiri

PT Multiselaras Anugrah

Jakarta
Jakarta
Jakarta

Tangerang

PT Nusa Medika Perkasa


PT Siloam Graha Utama and Subsidiary

Bekasi
Jakarta

PT East Jakarta Medika


PT Guchi Kencana Emas

Bekasi
Jakarta

PT Golden First Atlanta


PT Prawira Tata Semesta

Jakarta
Jakarta

PT Balikpapan Damai Husada


PT Eramulia Pratamajaya and Subsidiaries
PT Siloam Karya Sejahtera
PT Siloam Dinamika Perkasa

Balikpapan
Jakarta
Jakarta
Jakarta

PT Siloam Sarana Karya


PT Siloam Tata Prima

Jakarta
Surabaya

PT Mahaduta Purnama

Jakarta

PT Buana Mandiri Selaras

Jakarta

PT Serasi Adikarsa

Jakarta

PT Sentra Star Dinamika

Jakarta

PT Abadi Jaya Sakti and Subsidiaries

Tangerang

PT Tigamitra Ekamulia and Subsidiary


PT Shimatama Graha

Jakarta
Jakarta

PT Aryaduta International Management and Subsidiaries

Jakarta

PT Aryaduta Surabaya Management


PT Aryaduta Medan Management
PT Aryaduta Karawaci Management
PT Aryaduta Makassar Management
PT Aryaduta Residences
PT Aryaduta Hotels & Resort

Surabaya
Medan
Tangerang
Makassar
Jakarta
Jakarta

12

---

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Subsidiary

PT Graha Jaya Pratama and Subsidiary


PT Tataguna Cemerlang
PT Aresta Amanda Lestari (has 0.31% ownership in
PT Gowa Makassar Tourism Development Tbk)
PT Aresta Permata Utama (has 3.45% ownership in
PT Gowa Makassar Tourism Development Tbk)
PT Fajar Usaha Semesta (has 4.73% ownership in
PT Gowa Makassar Tourism Development Tbk)
PT Fajar Raya Cemerlang (has 4.58% ownership
in PT Gowa Makassar Tourism Development Tbk)
PT Fajar Abadi Aditama (has 3.45% ownership in
PT Gowa Makassar Tourism Development Tbk)
PT Nuansa Indah Lestari and Subsidiaries
PT Metropolitan Permai Semesta and Subsidiaries
PT Makassar Permata Sulawesi (has 32.5% ownership
in PT Gowa Makassar Tourism Development Tbk)
PT Gowa Makassar Tourism Development Tbk

Domicile

Main Business
Activity

Ownership
Percentage
Directly

Ownership
Percentage
Indirectly

Year of
Operation
Started

March 31, 2011

December 31, 2010

Tangerang
Jakarta

100.00%
--

-100.00%

---

449,477,018,239
100,006,000

678,437,900
100,006,000

Jakarta

Real Estate
Trading, Real Estate,
and Development
General Trading

Rp

Rp

--

99.99%

--

444,849,281

204,379,650

Jakarta

General Trading

--

99.99%

--

4,853,342,793

2,204,855,750

Jakarta

General Trading

--

99.99%

--

6,655,228,852

3,022,718,666

Jakarta

General Trading

--

99.99%

--

6,442,698,404

2,923,731,973

Jakarta

General Trading

--

99.99%

--

4,855,192,793

2,206,741,750

Jakarta
Jakarta
Makassar

General Trading
General Trading
General Trading

----

100.00%
89.74%
88.66%

----

50,019,404,990
51,810,804,490
49,845,447,712

47,179,654,493
48,968,945,993
46,963,247,615

Makassar

Real Estate
and Property

4.92%

45.33%

1997

378,771,830,514

358,990,245,776

* Liquidated
** Transferred

Sigma Capital Pte. Ltd. and Sigma Trilium Pte. Ltd. were established on March 22, 2010 in Singapore.
On November 8, 2010, all ownership in Platinum Strategic Investment Pte. Ltd., a subsidiary, was sold.
On December 1, 2010, all ownership in PT Menara Abadi Megah, a subsidiary, was sold.
On March 11, 2011, two subsidiaries namely PT Siloam International Hospitals (SIH) and PT
Megapratama Karya Persada (MKP) acquired 99.98% and 0.02% ownership of PT Guchi Kencana Emas
(GKE), respectively. GKE owned 83% shares in PT Golden First Atlanta. On the same day, SIH and MKP
acquired 99.8% and 0.2% ownership of PT Prawira Tata Semesta (PTS), respectively. PTS owned
79.61% shares in PT Balikpapan Damai Husada.

13

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
1.d. Board of Commissioners, Directors, Audit Committee and Employees
Based on Deeds of Annual General Meeting of Shareholders Resolution No. 11 dated March 9, 2011 and
No. 3 dated May 3, 2010, made in presence of Unita Christina Winata, S.H., a notary in Tangerang, the
Board of Commissioners and Directors composition as of March 31, 2011 and December 31, 2010 are as
follows:
March 31, 2011

December 31, 2010

Board of Commissioners:
President Commissioner
Vice President Commissioner
Independent Commissioner
Independent Commissioner
Independent Commissioner
Independent Commissioner
Independent Commissioner
Commissioner

: Theo L. Sambuaga
: Surjadi Soedirdja*
: Tanri Abeng
: Agum Gumelar
: Farid Harianto
: Jonathan Limbong Parapak
: -: Gouw Vi Ven (Viven G. Sitiabudi)

Theo L. Sambuaga
Surjadi Soedirdja*
Tanri Abeng
Agum Gumelar
Farid Harianto
Jonathan Limbong Parapak
Adrianus Mooy
Gouw Vi Ven (Viven G. Sitiabudi)

Directors:
President Director
Director
Director
Director
Director
Director
Director

: Ketut Budi Wijaya


: Tjokro Libianto
: Jopy Rusli
: Elia Yudhistira Susiloputro
: Djoko Harjono
: Roberto Fernandez Feliciano
: Ivan Setiawan Budiono

Ketut Budi Wijaya


Tjokro Libianto
Jopy Rusli
Elia Yudhistira Susiloputro
Djoko Harjono
---

* also as Independent Commissioner

The audit committee composition as of March 31, 2011 and December 31, 2010 are as follows:
March 31, 2011
Chairman
Member
Member

: Jonathan Limbong Parapak


: Isnandar Rachmat Ali
: Lie Kwang Tak

December 31, 2010


Adrianus Mooy
Isnandar Rachmat Ali
Lie Kwang Tak

The Companys corporate secretary as of March 31, 2011 and December 31, 2010 is Jenny Kuistono.
Total remuneration of the Companys Commissioners and Directors for the period ended March 31, 2011
and year ended December 31, 2010 are as follows:
March 31, 2011
Rp
Board of Commissioners
Directors
Total

1,283,337,000
2,330,020,000
3,613,357,000

December 31, 2010


Rp
10,836,824,253
15,462,529,061
26,299,353,314

As of March 31, 2011 and December 31, 2010, the Company and subsidiaries have 4,114 and 4,067
permanent employees, respectively (unaudited).

14

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
2.

Summary of Significant Accounting Policies


2.a. Basis of Measurement and Preparation of Consolidated Financial Statements
The consolidated financial statements are prepared in conformity with accounting principles generally
accepted in Indonesia, consisting of among others, the Statements of Financial Accounting Standard
(PSAK) established by the Indonesian Institute of Accountants, and Bapepam-LK regulations.
The basis of measurement in the preparation of these consolidated financial statements is by using the
historical cost concept, except for investments in certain securities which are carried at fair value, and
inventories which are carried at the lower of cost or net realizable value. The consolidated financial
statements are prepared using the accrual method, except for statements of cash flows.
The consolidated statements of financial position are presented based on the unclassified method in
accordance with PSAK No. 44 Accounting for Real Estate Development Activities.
The consolidated statements of cash flows are prepared using the direct method by classifying cash flows
into operating, investing and financing activities.
The reporting currency used in the preparation of the consolidated financial statements is Rupiah (Rp).
2.b. Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its subsidiaries which are
presented in Note 1.c.
The consolidated financial statements have been prepared on the basis of entity concept. All significant
related intercompany accounts, transactions and profits among the consolidated companies have been
eliminated to reflect the financial position and result of operations as a whole entity.
2.c. Foreign Currency Transactions and Translation of Financial Statements
Transactions involving foreign currencies are recorded at the rates of exchange prevailing at the time the
transactions are made. On the balance sheets date, monetary assets and liabilities denominated in
foreign currencies were adjusted to reflect the rates of exchange prevailing at the time, with the following
conversion rates:
March 31, 2011 December 31, 2010
Rp
Rp
8,709
8,991
6,906
6,981
12,317
11,956
10,514
11,029
9,001
9,143

USD 1
SGD 1
EUR 1
JPY 100
AUD 1

The accounts of foreign subsidiaries were translated into Rupiah at the middle rate of exchange prevailing
at balance sheet date for balance sheet accounts and the average rate during the period for statement of
income accounts. The differences resulting from the translations of the financial statements of
subsidiaries which are an integral part of the Company are debited or credited to "Gain (Loss) On Foreign
Exchanges" in the consolidated financial statements, while for the subsidiaries which are not an integral
part of the Company, are debited or credited to "Difference from Foreign Currency Translations".
2.d. Cash Equivalent
Cash equivalent consists of time deposits with maturities of not more than or equal to 3 (three) months
since the date of placement, not restricted and are not used as collateral to any liabilities.
15

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
2.e. Investments
Investments consist of placement in certain securities, equity instruments in other companies and
investments in associated.

Certain Securities and Equity Instruments in Other Companies


Placements in securities without fair value are carried at cost. Placements in securities, which have
a readily determinable fair value consists of debt and equity securities are classified into the
following 3 (three) categories:
Trading
Securities in this category are bought and held for the purpose of selling them in the near
future, which are usually indicated by high frequency of purchase and sale transactions. These
securities are held for the purpose of profit-taking in the short term. These securities are carried
at their fair value. Unrealized gains or losses are recognized in the current period consolidated
statement of income.
Held to Maturity
Debt securities classified as held to maturity are carried at cost net of unamortized discount or
premium. Losses are recognized in the current period consolidated statement of income for the
impairment in the carrying value of the securities.
Available for Sale
Investments in securities which cannot be classified as Trading or Held to Maturity are
carried at fair value. Any unrealized gain or loss from adjustment to fair value on the date of
consolidated balance sheet is credited or debited under Unrealized Gain (Loss) on Changes in
Fair Value of Available-for-Sale Marketable Securities account as a separate component of
consolidated equity.
Investments in equity instruments with ownership less than 20% where the fair market value are not
readily determinable are carried at acquisition cost (cost method).
Accounting policies for investments in certain securities and equity instruments in other companies
above have been revised when PSAKs No. 50 (Revised 2006) regarding Financial Instruments:
Presentation and Disclosure and No. 55 (Revised 2006) regarding Financial Instruments:
Recognition and Measurement become effective for financial statement beginning on or after
January 1, 2010 which is applied prospectively (see Note 2.x).

Investment in Associates
Investments with ownership from 20% up to 50%, either direct or indirect, are carried at acquisition
cost by adding or deducting with the Companys share in net earnings or losses of the investee from
the date of acquisition in proportion to the percentage of ownership and less the dividend received
(equity method).

2.f. Transaction with Related Parties


The Company has transactions with certain parties which are regarded as having related party
relationships as defined by PSAK 7 on Related Party Disclosures.
Related parties are defined under PSAK 7 as follows:
a. Enterprises that, through one or more intermediaries, control, or are controlled by, or are under
common control with, the reporting enterprise (including holding companies, subsidiaries and fellow
subsidiaries);
b. Associated companies;

16

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
c. Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that
gives them significant influence over the enterprise, and close members of the family of any such
individuals (close members of a family are defined as those members who are able to exercise
influence or can be influenced by such individuals in their transactions with the reporting enterprise);
d. Key management personnel, that is, those persons having authority and responsibility for planning,
directing and controlling the activities of the reporting enterprise, including commissioners, directors
and managers of the enterprise and close members of the families of such individuals; and
e. Enterprises in which a substantial interest in the voting power is owned, directly or indirectly, by any
person described in (c) or (d) above, or over which such a person is able to exercise significant
influence. This definition includes enterprises owned by commissioners, directors or major
stockholders of the reporting enterprise and enterprises that have a member of key management in
common with the reporting enterprise.
2.g. Trade Accounts Receivable
Trade accounts receivable are recognized initially at fair value and subsequently measured at amortized
cost using effective interest method, less allowance for impairment.
An allowance for impairment is established when there is objective evidence that the Company will not be
able to collect all amounts due according to the original terms of receivables. Significant financial
difficulties of the debtor, the probability that the debtor will enter bankruptcy or financial reorganization,
and default or delinquency in payments (more than 30 days overdue) are considered indicators that the
trade accounts receivables is impaired. The amount of allowance is the difference between the assets
carrying amount and the present value of estimated future cash flows, discounted at the original effective
interest rate.
The carrying amount of the asset is reduced through the use of an allowance account, and the amount of
the loss is recognized in the consolidated statement of income. When a trade accounts receivables is
uncollectible, it is written-off against the allowance account for receivables. Subsequent recoveries of
amounts previously written-off are credited against the consolidated statement of income.
2.h. Inventories and Land for Development
Real estate inventories, which mainly consist of acquisition cost of land under development, shopping
center, residential houses, shophouses, office buildings, and apartments, including buildings (houses)
under construction, are carried at the lower of cost or net realizable value. Cost is determined by using the
average method. Cost of land under development includes cost of land improvement and development,
capitalized interest and other financing charges obtained to finance the acquisition and development of
land until completed. The cost of residential houses and shophouses consist of actual construction cost.
Inventories of healthcare business (e.g. medicines, medical supplies and others) are carried at the lower
of cost or net realizable value. Cost is determined by using the average method. Allowance for decline in
inventories value is provided based on a review of inventory status at the end of period.
Inventories of hotel business (e.g. food, beverages and others) are carried at the lower of cost or net
realizable value. Cost is determined by using the first-in-first-out method (FIFO). Allowance for decline in
inventories value is provided based on a review of inventory status at the end of period.

17

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Land for development which are owned by the Company and subsidiaries is classified as Land for
Development. Upon the commencement of development and construction of infrastructure, the carrying
cost of land under development will be transferred to the respective real estate inventories or property and
equipment accounts, whichever is most appropriate.
2.i. Prepaid Expenses
Prepaid expenses are amortized over the period benefited using straight-line method.
2.j. Investment Properties
Investment properties owned or held under a finance lease to earn rentals or for capital appreciation or
both, rather than for use in the production or supply of goods or services or for administrative purposes or
sale in the ordinary course of business.
Investment property is carried at cost less its accumulated depreciation and any accumulated impairment
losses (cost model). Land is not depreciated and presented at acquisition cost. Building is depreciated
using straight line method based on its estimated useful lives (20 years). The cost of repairs and
maintenance is charged to operation as incurred, whilst significant renovations and additions are
capitalized.
2.k. Property and Equipment
Property and equipment after initial recognition accounted using cost model. Property and equipment are
carried at cost less their accumulated depreciation and any accumulated impairment losses, if any. Land
are carried at cost and not depreciated. Depreciation is computed by using the straight line method based
on the estimated useful lives of the assets, as follows:
Years
Building, Infrastructure, and Renovations
Parks and Interiors
Golf Course and Club House
Transportation Equipment and Vehicles
Furniture, Fixtures and Office Equipment
Tools and Medical Equipment
Machinery and Project Equipment
Bowling Machinery
Playground Areas

:
:
:
:
:
:
:
:
:

4 - 40
5
20
4-8
3 - 10
3 - 10
3 - 10
10
5

The cost of repairs and maintenance is charged to operation as incurred, whilst significant renovations
and additions are capitalized. When assets are retired or otherwise disposed of, the cost and the related
accumulated depreciation are removed from the accounts and any resulting gains or losses are reflected
in the consolidated statement of income for the period.
Unutilized property and equipment are presented as a component of other assets and carried at the lower
of its carrying value or net realizable value.
Construction in progress represents expenditure incurred directly to infrastructure development and
property and equipment preparation. Expenditure including borrowing cost on loan used for developing
assets during the construction period. Construction in progress will be transferred to the appropriate
property and equipment account when the construction is completed and ready for its intended use.

18

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
2.l. Leases
Leases are classified as finance leases if substantially all the risks and rewards of ownership are
transferred to the lessee. Leases are classified as operating leases if substantially all the risks and
rewards of ownership are not transferred to the lessee.
At the commencement of the lease term, a finance lease is recognized as an asset and a liability in the
balance sheet at amounts equal to the fair value of the leased asset or, if lower, the present value of the
minimum lease payments, each determined at the inception of the lease. The discount rate used in
calculating the present value of the minimum lease payments is the interest rate implicit in the lease, if
this is practicable to determine; if not, the lessees incremental borrowing rate is used. Any initial direct
costs of the lessee are added to the amount recognized as an asset. The depreciable amount of a leased
asset is allocated to each accounting period during the period of expected use on a systematic basis
consistent with the depreciation policy the lessee adopts for depreciable assets that are owned.
A sale and leaseback transaction involves the sale of an asset and leasing back the same asset. If a sale
and leaseback transaction is a finance lease, any excess of sales proceeds over the carrying value
should not be immediately recognized as income in the financial statements of a seller (lessee), but it
should be deferred and amortized over the lease period.
If a sale and leaseback transaction is an operating lease, and it is clear that the transaction is established
at fair value, any profit and loss should be recognized immediately. If the sale price is below fair value,
any profit or loss should be recognized immediately except that the loss is compensated by future lease
payments at below market price, it should be deferred and amortized in proportion to the lease payments
over the period for which the asset is expected to be used. If the sale price is above fair value, the excess
over fair value should be deferred and amortized over the period for which the asset is expected to be
used.
2.m. Borrowing Cost
Interest and other financing charges incurred on loan and debt obtained to finance the acquisition and
development of land and building construction are capitalized to the respective real estate inventories.
Capitalization ceases upon completion of all activities related to the acquisition and development of land,
or upon completion of the construction and the assets are ready for their intended use.
2.n. Impairment of Non-Financial Assets
Recoverable of assets value shall be estimated whenever events and changes of circumstances
indicating carrying value may not be recoverable. Impairment in non-financial asset is recognized as loss
in the consolidated statements of income.
2.o. Intangible Assets
Goodwill arises from the difference between acquisition cost and fair value of net assets of subsidiaries
acquired and impairment test of asset is conducted every period.
Acquisition cost of accounting software, is deferred and amortized by using the straight-line method based
on the estimated of economic useful lives of 5 (five) years.
2.p. Bond Issuance Cost
Bond issued is classified into category of financial liabilities measured at amortized cost (see Note 2.x).
Therefore, bond issuance cost deducted directly from proceeds in order to describe net proceeds of the
bonds. The difference between the net proceeds and the nominal value represents premium or discount
which is amortized over the term of the bonds by using the effective interest rate method.

19

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
2.q. Estimated Liabilities on Employees Benefits
The Company recognized provisions for estimated liabilities on employees benefits in accordance with
Labor Law No. 13/2003 dated March 25, 2003 and PSAK 24 (Revised 2004) Employees Benefits.
Short-term employees benefits are recognized at an undiscounted amount when employees have
rendered their services to the Company during the accounting period.
Post employment benefit was recognized at discounted amount when the employees have rendered their
service to the Company during the accounting period. Liabilities and expenses are measured using
actuarial techniques which include constructive obligation that arises from the Companys common
practices. In calculating liabilities, the benefit must be discounted using the projected unit credit method.
Termination benefit is recognized when, and only when, the Company is committed to either:
(a) Terminate the employment of an employee or group of employees before the normal retirement
date;
(b) Provide termination benefits as a result of an offer made in order to encourage voluntary
redundancy.
2.r. Difference in Value from Restructuring Transactions between Entities Under Common Control
The restructuring transactions between entities under common control, such as transfers of assets,
liabilities, shares or other ownership instruments by re-organizing entities within the same group, does not
represent changes of ownership in terms of economic substance, thus should not result in gain or loss for
the group companies as a whole or for the individual entity in the group.
Since restructuring transactions with entities under common control do not result in changes in term of
economic substance of ownership in transferred assets, liabilities or other ownership instruments, the
transferred assets or liabilities (in legal form) should be recorded at book value in a manner similar to
business combination transactions using the pooling of interest method.
The difference between transfer price and book value does not represent goodwill. Such difference is
recorded in an account entitled Difference in Value from Restructuring Transactions between Entities
Under Common Control and presented as a component of equity.
2.s. Derivative Financial Instruments
The Company adopted Statement of Financial Accounting Standard (PSAK) No. 50 (Revised 2006)
regarding Financial Instruments: Presentation and Disclosure and PSAK No. 55 (Revised 2006)
regarding Financial Instruments: Recognition and Measurement.
In implementing risk management to the volatility of foreign currency, the Company has entered into
several derivatives agreements with certain third parties.
Derivatives Instrument recognized based on its fair value and classified as financial asset and/or financial
liabilities. Changes in the fair value is recognized as gain or loss for the period on the consolidated
statement of income.
2.t. Revenue and Expense Recognition
The Company and subsidiaries recognize revenues from the sale of real estate using the full accrual
method. Revenues of real estate sales will be fully recognized if the following conditions for each type of
sale are met.

20

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
For sale of parcel of vacant land, the criteria that should be met are as follows:
a. The payments received from the buyer have reached 20% of the agreed selling price and the
amount is non-refundable;
b. The collectability of the sales price is reasonably assured;
c. The receivables from the sale is not subject to future subordination against other loans which will be
obtained by the buyer;
d. The process of land development has been completed thus the seller is not obliged to develop the
sold lots such as the obligation to construct lot of land or obligation to develop main infrastructure
promised by the seller, in accordance with the sales and purchase agreement or any regulation
requirements; and
e. The sale consists only of the vacant land, without any obligation of the seller in the construction of
the buildings upon the land sold.
For sale of residential houses, shophouses and other similar types of buildings, including parcel of land,
the criteria that should be met are as follows:
a. The sale is consummated;
b. The collectability of the sales price reasonably assured;
c. The receivables from the sale is not subject to future subordination against other loans which will be
obtained by the buyer; and
d. The seller has transferred to the buyer the usual risks and rewards of ownership through a
transaction representing in substance is a sale and the seller does not have substantial continuing
involvement with such property.
If a real estate sale fails to meet the all criteria of full accrual method, revenue recognition is deferred and
the transaction is recognized using the deposit method until all of the conditions of full accrual method
fulfilled.
The revenue from shopping centers and apartments are recognized based on percentage of completion
method, if all of the following criteria are met:
a. The construction process has already beyond preliminary stage, that is the building foundation has
been completed and all of the requirements to start the construction have been fulfilled;
b. Total payments received from the buyer is at least 20% of the contract sales price and that such
amount is not refundable; and
c. The amount of revenue and cost of the unit property can reasonably be estimated.
The method used to determine the level of development activity completion is based on percentage of
actual activities accomplished to total development activities need to be accomplished.
Cost of land lots sold is determined based on estimated acquisition cost of the land plus other estimated
expenditures for its improvements and developments. The cost of residential houses and shophouses
sold is determined based on actual cost incurred and estimated cost to complete the work. The estimated
cost to complete is included under Accrued Expenses. The difference between the estimated cost and
the actual cost of construction or development is charged to Cost of Sales in the current period.
Revenues from medical services are recognized when medical services are rendered or when medical
supplies are delivered to patients.

21

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Rental revenue and other services is recognized based on their respective rental periods and when the
services are rendered to the customers. Rental and membership paid in advances are presented as
deferred income and recognized as revenue over the period benefited.
Expenses are recognized when incurred (accrual basis).
2.u. Income Tax
Final Income Tax
Final income tax expense is recognized proportionally with the accounting income recognized during the
period. The difference between the final income tax paid and the final tax expense in the consolidated
statement of income is recognized as prepaid tax or tax payable. If the income is subjected to final income
tax, the differences between the financial statement carrying value of existing assets and liabilities and
their tax bases are not recognized as deferred tax assets or liabilities.
Non-Final Income Tax
All temporary differences arising between tax bases of assets and liabilities and their carrying value are
recognized as deferred tax using the liability method. Currently or substantially enacted tax rates are used
to determine deferred income tax.
Deferred tax assets relating to carry forward unused tax losses are recognized to the extent that it is
probable the future taxable profit will be available against which the unused tax losses can be utilized.
Amendments to tax obligations are recorded when an assessment is received or, if appealed against,
when the results of the appeal are determined.
Current tax is recognized based on taxable income, in accordance with current tax regulations.
2.v. Earning Per Share
Basic earning per share (EPS) is computed by dividing the residual net income (income or loss after tax
less preferred stock dividend) available to common stockholders with the weighted average number of
common stocks during 1 (one) reporting period, while diluted EPS is computed by dividing the residual
net income (income or loss after tax less preferred stock dividend) available to common stockholders with
the weighted average number of common stocks during 1 (one) reporting period plus dilutive potential
common stocks.
2.w. Segment Information
Segment information of the Company and subsidiaries are presented based on business segment group.
Business segment is a distinguishable component and results in a different products or services based on
different industry or a product group or service, especially for customers outside the Companys entity.
The Company organized its business into six (6) business segment:
(i) Urban Development, which comprises, among other, activities in real estate, urban development,
land acquisition and clearing, land development and excavation, infrastructure development.
(ii) Large Scale Integrated Development, which comprises, among other, activities in real estate in large
scale integrated development project and its infrastructure development.
(iii) Retail Malls, which comprises among other, activities in real estate in development and management
of shopping center.
(iv) Healthcare, which comprise activities in health services.

22

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
(v) Hospitality and Infrastructure, which comprises, among others, activities in hotels, restaurants, town
management and water and sewage treatment, recreation center, transportation and maintenance
services.
(vi) Property and Portfolio Management, which comprises, among others, activities in management
services.
2.x. Financial Assets and Liabilities
Financial Assets
Financial assets are classified into 4 categories, as follows (i) financial assets at fair value through profit
or loss, (ii) loans and receivables, (iii) held-to-maturity financial assets and (iv) available-for-sale financial
assets. The classification depends on the purpose for which the financial assets were acquired.
Management determines the classification of its financial assets at initial recognition.
(i)

Financial assets measured at fair value through profit or loss


Financial assets measured at fair value through profit or loss are financial asset which held for
trading. Financial asset is classified as held for trading if it is acquires principally for the purpose of
selling or repurchasing it in the near term and for which there is evidence of recent actual pattern
of short term profit taking. Derivatives are also categorized as held for trading unless they are
designated and effective as hedging instruments.

(ii)

Loans and receivables


Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. Loan and receivables are initially recognized at fair value plus
transaction cost and subsequently measured at amortized cost using the effective interest rate
method.

(iii)

Held-to-maturity financial assets


Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable
payments and fixed maturities that management has the positive intention and ability to hold to
maturity, other than:
a. Those that are designated as at fair value through profit or loss upon initial recognition;
b. Those that are designated as available for sale; and
c. Those that meet the definition of loans and receivables.
These are initially recognized at fair value including transaction cost and subsequently measured
at amortized cost, using the effective interest rate method.

(iv)

Available-for-sale financial assets


Available-for-sale financial assets are non derivative financial assets that are intended to be held
for indefinite period of time, which might be sold in response to needs for liquidity or changes in
interest rates, exchange rates or that are not classified as loans and receivables, held-to-maturity
investments or financial assets at fair value through profit or loss.

23

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Available-for-sale financial assets are initial recognized at fair value, plus initial recognized at fair
value, plus transaction costs, and measured subsequently at fair value with gains and losses
being recognized in the consolidated statement of changes in equity, except for impairment losses
and foreign exchanges gains and losses, until the financial assets is derecognized. If an availablefor-sale financial asset is determined to be impaired, the cumulative gain or loss previously
recognized in the equity section will be recognized in the consolidated statements of income.
However, interest income is calculated using the effective interest method, and foreign currency
gain or losses on monetary assets classified as available-for-sale is recognized in the consolidated
statements of income.
Financial liabilities
Financial liabilities are classified into the category of (i) financial liabilities measured at fair value through
profit or loss and (ii) financial liabilities measured at amortized cost.
(i)

Financial liabilities measured at fair value through profit or loss


Financial liabilities measured at fair value through profit or loss are financial liabilities which held
for trading. A financial liability is classified as held for trading if it is acquired principally for the
purpose of selling or repurchasing it in the near term and for which there is evidence of a recent
actual pattern of short term profit taking. Derivatives are also categorized as held for trading unless
they are designated and effective as hedging instruments.

(ii)

Financial liabilities measured at amortized cost


Financial liabilities that are not classified as financial liabilities at fair value through profit or loss
are categorized and measured at amortized cost.

Fair value estimation


The fair value of financial instruments traded in active markets is determined based on quoted market
prices at the statement of financial position date.
Investments in equity securities that do not have readily determinable fair values are stated at cost.
The fair value of other financial instruments that are not traded in active markets is determined using
standard valuation techniques. The Company uses discounted cash flow methods and assumption based
on market conditions existing at the statement of financial position date to determine fair value for other
financial instruments.
2.y. Use of Estimates
The preparation of the consolidated financial statements is in accordance with generally accepted
accounting principles in Indonesia, which requires the management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, the disclosures of the contingent assets and
liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and
expenses during the reporting period.
Due to inherent uncertainty in the estimation determination, the actual amount of assets, liabilities,
revenues and expenses reported in the future might possibly be different from these estimates.

24

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
3.

Cash and Cash Equivalent


March 31, 2011
Rp
Cash on Hand
(including 2011: USD 16,790, SGD 17,812, EUR 4,605, JPY 113,800,
AUD 6,369 and 2010: USD 32,614, SGD 22,675, EUR 4,605,
JPY 113,800, AUD 6,419)
Cash in Banks
Third Parties
Rupiah
PT Bank Negara Indonesia (Persero) Tbk
PT Bank CIMB Niaga Tbk
PT Bank Central Asia Tbk
PT Bank Panin Tbk
PT Bank Danamon Indonesia Tbk
PT Bank Mega Tbk
PT Bank Rakyat Indonesia (Persero) Tbk
PT Bank Mandiri (Persero) Tbk
PT Bank Permata Tbk
PT Bank Internasional Indonesia Tbk
PT Bank OCBC NISP Tbk
PT Bank Buana Indonesia Tbk
PT Bank Tabungan Negara (Persero) Tbk
PT Bank Nationalnobu
PT Bank Agroniaga Tbk
Standard Chartered Bank
PT Bank Pembangunan Daerah Riau
Others
Foreign Currencies
PT Bank CIMB Niaga Tbk
(2011: USD 19,857,789, SGD 22,479,693; 2010: USD 5,492,228)
PT Bank Negara Indonesia (Persero) Tbk
(2011: USD 4,759,913)
OCBC Bank, Singapore
(2011: SGD 4,114,704; 2010: SGD 3,198,902)
PT Bank OCBC NISP Tbk
(2011: USD 439,456, SGD 1,200,846, EUR 6,848;
2010: USD 6,687, SGD 256,194, EUR 6,847)
PT Bank Mega Tbk
(2011: USD 1,213,989, SGD 6,968;
2010: USD 1,882,335, SGD 9,764)
Credit Suisse, Singapore
(2011: USD 307,878, SGD 968,679;
2010: USD 376,751, SGD 1,063,653)
DBS Bank, Singapore
(2011: USD 30,943, SGD 109,128;
2010: USD 30,943, SGD 35,111,817)
Others
Total Cash in Banks
25

December 31, 2010


Rp

5,422,387,953

5,063,225,418

71,461,502,490
49,076,266,549
26,228,787,098
23,750,288,967
14,994,424,543
10,449,957,876
5,086,918,494
3,827,805,341
3,572,561,479
1,483,732,793
1,178,215,565
767,683,790
633,593,614
350,547,800
252,599,238
198,815,763
102,125,483
108,394,506

27,019,168,345
67,899,337,216
18,072,023,981
4,642,252,107
2,707,330,012
5,487,108,526
4,086,250,203
8,938,951,317
4,889,620,144
3,134,006,870
5,705,991,399
747,432,770
844,162,206
-465,278,289
88,514,013
-136,805,201

328,186,249,421

49,380,619,726

41,454,078,331

--

28,416,147,827

22,331,537,166

12,204,613,656

1,930,508,395

10,620,754,771

16,992,235,576

9,371,010,994

10,812,728,838

1,023,122,068
561,218,373
645,361,416,830

245,393,806,826
830,048,941
502,535,718,067

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
March 31, 2011
Rp
Time Deposits
Third Parties
Rupiah
PT Bank CIMB Niaga Tbk
PT Bank Negara Indonesia (Persero) Tbk
PT Bank Mega Tbk
PT Bank Mayapada International Tbk
PT Bank Nationalnobu
PT Bank Central Asia Tbk
PT Bank Internasional Indonesia Tbk
Foreign Currencies
Raiffeisen Bank International, Singapore (USD 75,000,000)
PT Bank ICBC Indonesia (USD 10,000,000)
PT Bank OCBC NISP Tbk (USD 9,000,000)
OCBC Bank, Singapore (USD 2,000,000)
Bank of India, Singapura (2011: USD 87,868; 2010: USD 87,824)
PT Bank CIMB Niaga Tbk (2011: USD 12,431; 2010: USD 12,041)
Credit Suisse, Singapura (2011: USD 3,015; 2010: USD 21,154)
Total Time Deposits
Total Cash and Cash Equivalent

December 31, 2010


Rp

1,215,349,000,632
547,550,000,000
23,500,000,000
4,600,000,000
2,000,000,000
12,624,787
--

1,686,217,347,826
745,550,000,000
26,500,000,000
4,600,000,000
--245,813,680

653,175,000,000
87,090,000,000
78,381,000,000
13,812,000,000
765,244,676
108,264,767
26,256,314
2,626,369,391,176

674,325,000,000
--13,962,000,000
789,624,145
108,264,767
190,197,217
3,152,488,247,635

3,277,153,195,959

3,660,087,191,120

Interest rates for time deposits are as follows:


Interest Rates
Rupiah
Foreign Currencies

4.

March 31, 2011

December 31, 2010

5.25% - 8.00%
0.20% - 3.60%

5.25% - 8.00%
0.20% - 3.60%

March 31, 2011


Rp

December 31, 2010


Rp

Investments

Real Estate Investment Trust (REIT)


Investment in Share in:
Associates
Equity Instruments in Other Companies

778,871,139,667

406,294,289,217

69,982,219,095
58,317,523,011

69,571,917,104
58,357,521,011

Total Investments

907,170,881,773

534,223,727,332

26

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
a.

Real Estate Investment Trust (REIT)


March 31, 2011
Rp
Available for Sale
First REIT (2011: 136.294.405 units; 2010: 66.545.888 units)
Lippo-Mapletree Indonesia Retail Trust (LMIRT)
(2011: 22.881.853 units; 2010: 21.292.758 units)
Foreign Exchange Differences
Accumulated Unrealized Gain (Loss):
Charged to Profit and Loss
Credited to Equity
Total Investment in Real Estate Investment Trust

December 31, 2010


Rp

563,278,669,330

319,341,196,911

62,872,236,707
507,946,762

63,555,036,845
(236,194,673)

(1,949,311,917)
154,161,598,785

(1,949,311,917)
25,583,562,051

778,871,139,667

406,294,289,217

This account represents investments in REITs which is listed in Singapore Stock Exchange.
b.

Equity Instruments in Other Companies


Domicile

PT Supermal Karawaci
PT East Jakarta Industrial Park
PT Spinindo Mitradaya
Others

Tangerang
Jakarta
Jakarta
--

Total Investment in Others Companies

c.

March 31, 2011


Rp

December 31, 2010


Rp

57,372,704,000
766,935,000
160,000,000
17,884,011

57,372,704,000
766,935,000
160,000,000
57,882,011

58,317,523,011

58,357,521,011

Investment in Associates
Domicile

Equity Method
PT Surya Cipta Investama
PT Hyundai Inti Development
PT Menara Inti Development
PT Tritunggal Sentra Utama
PT Lippo Indorent
PT Lippo Hyundai Development
PT Bumi Lemahabang Permai
Sub Total
Cost Method
PT Medika Sehat Lestari *
PT Dunia Air Indah *
PT Adnansindo Intiprima *
PT Swadaya Teknopolis *
PT Ilmu Intiswadaya *
PT Bekasi Mega Power *
PT Taman Karawaci Permai
PT Tunggal Griya Semesta
Sub Total

Percentage
of
Ownership
%

Bekasi
Bekasi
Bekasi
Surabaya
Jakarta
Jakarta
Bekasi

49.81
45.00
40.00
20.00
50.00
40.00
30.00

Jakarta
Bekasi
Jakarta
Bekasi
Jakarta
Bekasi
Jakarta
Bekasi

25.00
100.00
30.00
99.99
20.00
100.00
10.00
5.00

Total Investment in Associates

Acquisition
Cost
Rp

March 31, 2011


Accumulated
Equity in Net
Earnings (Losses)
Rp

Carrying Value
Rp

500,000,000
36,820,138,263 (1,000,000,000)
6,155,423,370
80,135,665,312 (72,584,873,862)
100,000,000
8,476,356,829 (1,512,000,000)
583,500,000
1,784,653,241
-2,906,000,000 (1,879,146,558)
-16,216,500,000 (16,216,500,000)
-37,500,000
(37,500,000)
-26,498,923,370 109,083,667,087 (75,096,873,862)
4,999,994,000
3,781,609,500
300,000,000
249,999,000
100,000,000
49,900,000
12,500,000
2,500,000
9,496,502,500
35,995,425,870

27

Accumulated
Dividend
Received
Rp

----------

36,320,138,263
13,706,214,820
7,064,356,829
2,368,153,241
1,026,853,442
--60,485,716,595

----------

4,999,994,000
3,781,609,500
300,000,000
249,999,000
100,000,000
49,900,000
12,500,000
2,500,000
9,496,502,500

109,083,667,087 (75,096,873,862)

69,982,219,095

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Domicile

Percentage
of
Ownership
%

Equity Method
PT Surya Cipta Investama
PT Hyundai Inti Development
PT Menara Inti Development
PT Tritunggal Sentra Utama
PT Lippo Indorent
PT Lippo Hyundai Development
PT Bumi Lemahabang Permai
Sub Total

Bekasi
Bekasi
Bekasi
Surabaya
Jakarta
Jakarta
Bekasi

49.81
45.00
40.00
20.00
50.00
40.00
30.00

Cost Method
PT Medika Sehat Lestari *
PT Dunia Air Indah *
PT Adnansindo Intiprima *
PT Swadaya Teknopolis *
PT Ilmu Intiswadaya *
PT Bekasi Mega Power *
PT Tirta Sari Nirmala **
PT Chandramulia Adidharma **
Sub Total

Jakarta
Bekasi
Jakarta
Bekasi
Jakarta
Bekasi
Bekasi
Bekasi

25.00
100.00
30.00
99.99
20.00
100.00
100.00
100.00

Total Investment in Associates

*
**

December 31, 2010


Acquisition
Accumulated
Cost
Equity in Net
Earnings (Losses)
Rp
Rp

Accumulated
Dividend
Received
Rp

Carrying Value
Rp

32,964,983,496
3,355,154,767
-6,155,423,370
79,160,538,069 (72,568,730,625)
100,000,000
8,985,038,844 (1,512,000,000)
583,500,000
1,784,653,241
-200,000,000
826,853,442
-16,216,500,000 (16,216,500,000)
-37,500,000
(37,500,000)
-56,257,906,866
77,858,238,363 (74,080,730,625)
4,999,994,000
3,781,609,500
300,000,000
249,999,000
100,000,000
49,900,000
40,000,000
15,000,000
9,536,502,500
65,794,409,366

----------

36,320,138,263
12,747,230,814
7,573,038,844
2,368,153,241
1,026,853,442
--60,035,414,604

----------

4,999,994,000
3,781,609,500
300,000,000
249,999,000
100,000,000
49,900,000
40,000,000
15,000,000
9,536,502,500

77,858,238,363 (74,080,730,625)

69,571,917,104

Dormant
Consolidated in 2011

The Companys investments in dormant companies are accounted using cost method because the fair
value of the investments cannot be determined.
On September 2, 2010, PT Wisma Jatim Propertindo, a subsidiary, swapped its share in PT Multifiling
Mitra Indonesia as paid in capital for establishment of PT Surya Cipta Investama.
5.

Trade Accounts Receivable


March 31, 2011
Rp

December 31, 2010


Rp

Third Parties
Urban Development:
Land Lots
Residential Houses and Shophouses
Memorial Park
Asset Enhancements
Sub Total

69,255,553,589
32,060,695,798
25,497,000,073
4,710,229,514
131,523,478,974

36,522,738,817
85,623,090,499
29,373,886,548
1,847,572,394
153,367,288,258

Large Scale Integrated Development:


Apartments
Asset Enhancements
Sub Total

24,763,706,858
6,897,838,016
31,661,544,874

25,620,888,057
5,955,895,249
31,576,783,306

123,590,790,057
23,377,403,242
172,295,775
147,140,489,074

129,245,814,631
22,871,814,202
172,295,775
152,289,924,608

Retail Malls:
Shopping Centers
Asset Enhancements
Others
Sub Total

28

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
March 31, 2011
Rp
Healthcare:
Inpatient and Outpatient

December 31, 2010


Rp

91,351,287,601

73,174,728,266

Hospitality and Infrastructure:


Town Management and Water Treatment
Hotels and Restaurants
Recreations and Sports
Others
Sub Total

73,642,867,269
24,970,968,851
60,491,441
7,890,569,062
106,564,896,623

72,451,745,585
22,024,183,551
5,020,547,825
7,140,675,642
106,637,152,603

Property and Portfolio Management:


Management Fee
Sub Total Trade Accounts Receivable from Third Parties
Less: Allowance for Doubtful Accounts
Total Trade Accounts Receivable from Third Parties - Net

147,154,574,991
655,396,272,137
(44,890,560,027)
610,505,712,110

184,292,716,719
701,338,593,760
(44,734,119,179)
656,604,474,581

5,790,632,641
-5,790,632,641

5,083,171,699
-5,083,171,699

616,296,344,751

661,687,646,280

Related Parties
Healthcare:
Inpatient and Outpatient
Less : Allowance for Doubtful Accounts
Total Trade Accounts Receivable from Related Parties - Net
Total Trade Accounts Receivable - Net

The trade accounts receivable schedule from the date of the invoice is as follows:
March 31, 2011
Rp
Third Parties
Current
Over Due
Up to 3 Months
> 3 months - 6 months
> 6 months - 1 year
> 1 year
Sub Total
Less: Allowance for Doubtful Accounts
Total Trade Accounts Receivable from Third Parties - Net
Related Parties
Current
Over Due
Up to 3 Months
> 3 months - 6 months
> 6 months - 1 year
> 1 year
Sub Total
Less: Allowance for Doubtful Accounts
Total Trade Accounts Receivable from Related Parties - Net
Total Trade Accounts Receivable - Net
29

December 31, 2010


Rp

425,697,910,985

485,797,044,845

90,038,222,154
25,507,096,150
22,433,303,813
91,719,739,035
655,396,272,137
(44,890,560,027)
610,505,712,110

75,533,741,629
27,492,332,406
19,257,330,509
93,258,144,371
701,338,593,760
(44,734,119,179)
656,604,474,581

--

--

3,899,307,974
273,313,167
515,354,725
1,102,656,775
5,790,632,641
-5,790,632,641

2,506,470,079
1,187,728,745
753,186,728
635,786,147
5,083,171,699
-5,083,171,699

616,296,344,751

661,687,646,280

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
The movements of allowance for doubtful accounts are as follows:
March 31, 2011
Rp

December 31, 2010


Rp

Third Parties
Beginning Balance
Addition
Reversal

44,734,119,179
156,440,848
--

52,696,124,794
-(7,962,005,615)

Ending Balance

44,890,560,027

44,734,119,179

Related Parties
Beginning Balance
Reversal

---

749,719,412
(749,719,412)

Ending Balance

--

--

Addition or reversal of allowance for doubtful account of related parties is based on review of the status of
debtors at the end of the period.
Trade accounts receivable of PT Golden First Atlanta, a subsidiary, have been pledged as collateral for loans
obtained from PT Bank Central Asia Tbk (see Notes 15.b).
Management believes that the allowance for doubtful account is adequate to cover the possibility of
uncollectible trade accounts receivable.
6.

Other Accounts Receivable


March 31, 2011
Rp

December 31, 2010


Rp

Third Parties
Promissory Notes (2010: USD 3,500,000 and 2009: USD 4,000,000)
Tenant Association for Apartments, Condominium and Shopping Centers
Call Spread Option (see Note 33.c)
Dividend
Security Services
Others (each less than Rp 5 billion)
Sub Total
Less: Allowance for Doubtful Accounts

30,481,500,000
13,716,739,915
12,945,065,260
6,836,250,023
6,431,088,288
152,702,435,704
223,113,079,190
(6,353,293,962)

35,964,000,000
13,766,739,915
16,992,504,426
16,387,970,632
6,431,088,288
58,435,946,239
147,978,249,500
(6,353,293,962)

Total Other Accounts Receivable - Net

216,759,785,228

141,624,955,538

Promissory note represents non-interest bearing promissory notes received from PT Makassar Hotel Network
for sales of Aryaduta Hotel Makassar in 2008. The notes were issued by PT Makassar Capital (MC) with total
amount of USD 6,000,000. First promissory note amounted to USD 3,000,000 had due on December 31, 2008
and was extended based on Rescheduling Agreement (RA) dated April 22, 2009. Based on RA, MC shall pay
to the Company on installment basis whereby the last installment should be paid on October 22, 2009. Up to
reporting date, MC had made installment of USD 2,500,000 and the balance of USD 3,500,000 is in process to
be extended.
Receivable from Tenant Association for Apartments, Condominium and Shopping Centers represents
receivables of maintenance, security, electricity and water.

30

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Dividend represents dividend receivables of Bridgewater International Pte Ltd, Bowsprit Capital Corp Ltd. and
Lippo-Mapletree Indonesia Retail Trust, subsidiaries, for their investment in REIT (see Note 4).
Security services represents receivable from PT Artha Sarana Prima for providing security services in Lippo
Village area.
The Company and subsidiaries management believe that allowance for doubtful accounts is adequate to cover
the possibility of uncollectible other accounts receivable.
7.

Inventories
March 31, 2011
Rp

December 31, 2010


Rp

Urban Development:
Land under Development
Residential Houses and Shophouses
Apartments
Others
Sub Total

3,159,311,995,775
581,919,658,519
32,670,973,692
7,274,286,595
3,781,176,914,581

3,176,257,613,520
563,789,954,872
40,353,799,109
6,526,120,007
3,786,927,487,508

Large Scale Integrated Development:


Land under Development
Shopping Centers
Apartments
Sub Total

807,091,058,686
579,562,384,391
571,632,175,185
1,958,285,618,262

805,150,121,700
459,661,068,085
587,146,043,382
1,851,957,233,167

Retail Malls:
Shopping Centers
Land under Development
Sub Total

824,096,464,033
522,637,838,673
1,346,734,302,706

818,936,315,818
574,938,160,855
1,393,874,476,673

35,135,576,866

31,407,575,642

3,222,253,783
914,081,007
189,423,308
(39,505,683)
4,286,252,415

3,346,698,197
869,272,842
195,769,456
(39,505,683)
4,372,234,812

7,125,618,664,830

7,068,539,007,802

Healthcare:
Medical and Non-Medical Supplies
Hospitality and Infrastructure:
Hotels and Restaurants
Recreation and Sports
Others
Less: Allowance for Decline in Inventories Value
Sub Total
Total Inventories - Net

In 2010, land under development amounted to Rp 117,603,913,069 has been reclassified to investment
properties (see Notes 11), and property and equipment has been reclassified to inventory amounted to
Rp 221,894,237,841 (see Note 12).
In 2011, inventory amounted to Rp 544,781,346 has been reclassified to investment properties (see Note 11).

31

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Interests and other borrowing costs from bonds (see Note 15.e), loans obtained from PT Bank Negara
Indonesia Tbk and PT Bank Agroniaga Tbk (see Notes 15.c and 15.d) have been capitalized into land under
development for the period ended March 31, 2011 and the year ended December 31, 2010 amounted to
Rp 79,846,942,202 and Rp 416,256,671,864, respectively.
As of March 31, 2011, land under development consisted of land covering a net area of approximately
29 hectares in Kelapa Dua and Bencongan Village, 11 hectares in Jalan Lingkar Luar Barat - Puri Kembangan,
15 hectares in Mampang Prapatan District, 3 hectares in Simprug, South Jakarta, 20 hectares in West
Panunggangan Village, 30 hectares in Binong Village, 2 hectares in Kelapa Indah Village, 11 hectares in
Bonang Village, 20 hectares in Sukanagalih Village, 103 hectares in Margakaya Village, Telukjambe,
Karawang, 120 hectares in Cibatu Village, 14 hectares in Serang Village, 35 hectares in Sukaresmi Village,
207 hectares in Cicau Village, 3 hectares in Kuta, Bali, 35 hectares in Tanjung Merdeka Village, 24 hectares in
Macini Sombala Village, 15 hectares in Tamanyeleng Village, 32 hectares in Barombong Village and 14
hectares in Mariso District.
Medicine inventory and BHP of PT Golden First Atlanta, subsidiary, have been pledged as collateral for loans
obtained from PT Bank Central Asia Tbk (see Note 15.b).
Land under development owned by PT Lippo Cikarang Tbk, a subsidiary, totaling to 21.9 hectares and 78.3
hectares are pledged for credit facilities obtained from PT Bank ICBC Indonesia and PT Bank Negara
Indonesia Tbk (Persero) (see Note 33.a).
The Companys and subsidiaries inventories have been insured against all risks, based on a certain insurance
policy package of PT Lippo General Insurance Tbk, related party and PT Asuransi Bintang Tbk, third party with
the sum insured of Rp 3,481 billion and USD 4,600,000 as of March 31, 2011 and December 31, 2010,
respectively. The Company and subsidiaries management believe that the sum insured is adequate to cover
any possible losses.
The Company and subsidiaries management were in opinion that there is no impairment in the carrying value
of inventories as of March 31, 2011.
8.

Advances
March 31, 2011

December 31, 2010

Rp

Rp

Advance for Investments:


PT Anugerah Bahagia Abadi
PT Guchi Kencana Emas
PT Prawira Tata Semesta
Sub Total

273,400,000,000
--273,400,000,000

255,000,000,000
57,443,246,813
46,655,579,000
359,098,825,813

Advance for Construction


Advance for Land Acquisition
Others

212,692,943,303
91,313,335,874
50,644,096,301

225,838,118,982
57,284,570,705
57,073,900,457

Total

628,050,375,478

699,295,415,957

32

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
9.

Transaction and Balances with Related Parties


The details of the account balance with related parties are as follows:

March 31,
2011
Rp

December 31,
2010
Rp

Percentage from Total


Assets/Liabilities/
Net Sales
March 31,
December 31,
2011
2010
%
%

Investment in Associates
PT Surya Citra Investama
PT Hyundai Inti Development
PT Menara Inti Development
PT Medika Sehat Lestari
PT Dunia Air Indah
PT Tritunggal Sentra Utama
PT Lippo Indorent
Others

36,320,138,263
13,706,214,820
7,064,356,829
4,999,994,000
3,781,609,500
2,368,153,241
1,026,853,442
714,899,000

36,320,138,263
12,747,230,814
7,573,038,844
4,999,994,000
3,781,609,500
2,368,153,241
1,026,853,442
754,899,000

0.22
0.08
0.04
0.03
0.02
0.01
0.01
--

0.22
0.08
0.05
0.03
0.02
0.01
0.01
--

Total Investment in Associates

69,982,219,095

69,571,917,104

0.41

0.42

Trade Accounts Receivable


Inpatient and Outpatient
Less: Allowance for Doubtful Accounts

5,790,632,641
--

5,083,171,699
--

0.03
--

0.03
--

Total Trade Accounts Receivable - Net

5,790,632,641

5,083,171,699

0.03

0.03

Due from Related Parties


PT Bumi Lemahabang Permai
PT Duta Mas Kharisma Indah
Employees and Directors
Others (each below Rp 1 billion)
Total
Less: Allowance for Doubtful Accounts

9,917,213,291
4,891,935,451
1,948,692,448
4,393,252,931
21,151,094,121
(12,004,700,338)

9,917,213,291
4,891,935,451
1,975,306,724
4,844,120,868
21,628,576,334
(12,255,328,472)

0.06
0.03
0.01
0.03
0.13
(0.07)

0.06
0.03
0.01
0.03
0.13
(0.08)

Total Due from Related Parties - Net

9,146,393,783

9,373,247,862

0.06

0.05

Trade Accounts Payable


PT First Media Tbk

8,331,926,427

9,710,280,000

0.10

0.12

Due to Related Parties


PT Dunia Air Indah
PT Tirta Graha Sentana
PT Gita Multi Sarana
PT Bumi Lemahabang Permai
PT Cahaya Harapan
Lain-lain
Others (each
(masing-masing
below Rp 1 billion)
dibawah Rp 500 juta)

3,790,587,326
1,620,804,400
654,785,672
233,811,968
-8,571,330,321

3,790,587,326
1,620,804,400
599,731,672
224,811,968
2,799,999,500
1,271,533,613

0.05
0.02
0.01
--0.11

0.05
0.02
0.01
-0.04
0.02

14,871,319,687

10,307,468,479

0.19

0.14

802,842,894,420

776,312,009,263

9.90

9.73

2,491,125,186

2,491,125,186

0.28

0.35

Total Due to Related Parties


Deferred Income
PT Matahari Putra Prima Tbk
Net Sales, Services and Other Revenues
PT Matahari Putra Prima Tbk

33

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
The transactions were conducted on equal normal business terms as transactions with third parties unless
otherwise disclosed. The significant transactions with related parties are as follows:
Related Parties

Relationship with the


Company

PT Matahari Putra Prima Tbk


PT Bumi Lemahabang Permai

Under Common Control


Under Common Control

PT Surya Cipta Investama


PT Lippo Indorent
PT Hyundai Inti Development
PT Tritunggal Sentra Utama
PT Menara Inti Development
PT Medika Sehat Lestari
PT Duta Mas Kharisma Indah
PT Dunia Air Indah

Associate
Associate
Associate
Associate
Associate
Associate
Under Common Control
Associate

PT Gita Multi Sarana


PT Tirta Graha Sentana
PT Cahaya Harapan
PT First Media Tbk

Under Common Control


Under Common Control
Under Common Control
Under Common Control

Transactions
Deferred income and net sales
Non-interest bearing of intercompany charges, advance
in connection with the cancellation of land
Investment in shares of stock
Investment in shares of stock
Investment in shares of stock
Investment in shares of stock
Investment in shares of stock
Investment in shares of stock
Non-interest bearing of intercompany charges
Investment in shares of stock and non-interest bearing of
intercompany charges
Non-interest bearing of intercompany charges
Non-interest bearing of intercompany charges
Intercompany advances
Rental of lease line

Receivable from PT Bumi Lemahabang Permai (BLP) represents receivable of PT Lippo Cikarang Tbk (LC), a
subsidiary, which mainly consists of non-interest intercompany accounts arisen from operational cost,
unsecured and no fixed repayment period.
Payable to BLP represents non-interest bearing of intercompany charges, unsecured and no fixed repayment
period.
10. Land for Development
Area
sqm
The Company
Subsidiaries
PT Lippo Cikarang Tbk
PT Gowa Makassar Tourism Development Tbk
PT Muliasentosa Dinamika
PT Erabaru Realindo
PT Sentragraha Mandiri
PT Sejatijaya Selaras
PT Bahtera Pratama Wirasakti
PT Surya Makmur Alam Persada
Total Land for Development

March 31, 2011


Value
Rp

1,001,010

December 31, 2010


Area
Value
sqm
Rp

203,350,714,722

1,001,010

203,350,714,722

3,184,944
445,701,364,382
2,093,094
143,208,729,875
803,413
112,455,747,318
692,082
16,961,287,500
239,759
33,313,592,430
121,543
18,620,363,550
83,405
15,695,452,595
71,303
20,283,623,533
8,290,553 1,009,590,875,905

3,567,083
2,066,224
803,413
692,082
239,759
121,543
83,405
71,303
8,645,822

395,545,217,623
137,533,188,653
112,455,747,318
16,961,287,500
33,313,592,430
18,620,363,550
15,695,452,595
20,283,623,533
953,759,187,924

34

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Land for development of the Company and subsidiaries are located at Curug Wetan Village, Curug Kulon,
Sukabakti in Curug District; Serdang Wetan Village, Rancagong in Legok District; Ciakar Village, Serdang
Kulon, Cukang Galih, Tangerang Regency, Banten; Cipambuan Village in Citeureup District, Bogor Regency,
West Java; Sukaresmi, Cibatu, Cicau, Sukamukti, Sirnajati, Jayamukti in Lemahabang District, South Cikarang;
Tanjung Merdeka Village, Barombong, Maccini Sombala, Tamanyeleng, Mariso, Benteng Somba Opu in
Makassar, South Sulawesi.
Site development permits of each land have been obtained from their respective local governors.
Interest expense and other borrowing cost of loan obtained from PT Bank Agroniaga Tbk had been capitalized
into land for development for the period ended March 31, 2011 and for the year ended December 31, 2010
amounted to Rp 160,565,297 and Rp 1,535,688,268, respectively (see Note 15.c).
Land for development of PT Gowa Makassar Tourism Development Tbk, a subsidiary, with area of 183,480
sqm is pledged as collateral for loan obtained from PT Bank Agroniaga Tbk (see Note 15.c).
11. Investment Properties
Beginning
Balance
Rp
Acquisition Cost
Land
Building
Total Acquisition Cost
Accumulated Depreciation
Building
Total Accumulated Depreciation
Carrying Value

Accumulated Depreciation
Building
Total Accumulated Depreciation
Carrying Value

Reclassification

Rp

Rp

Rp

Ending
Balance
Rp

104,497,432,432
459,734,537,752
564,231,970,184

----

----

-544,781,346
544,781,346

104,497,432,432
460,279,319,098
564,776,751,530

46,246,106,530
46,246,106,530

5,073,102,979
5,073,102,979

---

---

51,319,209,509
51,319,209,509

517,985,863,654

Beginning
Balance
Rp
Acquisition Cost
Land
Building
Total Acquisition Cost

Addition

March 31, 2011


Deduction

513,457,542,021
December 31, 2010
Deduction
Reclassification

Addition
Rp

Rp

Rp

Ending
Balance
Rp

101,874,921,232
343,909,635,883
445,784,557,115

----

----

2,622,511,200
115,824,901,869
118,447,413,069

104,497,432,432
459,734,537,752
564,231,970,184

24,766,419,985
24,766,419,985

21,479,686,545
21,479,686,545

---

---

46,246,106,530
46,246,106,530

421,018,137,130

517,985,863,654

In 2010, the Company had reclassified inventories, and property and equipment to investment properties
amounted to Rp 117,603,913,069 and Rp 843,500,000, respectively. In 2011, the Company had reclassified
inventories to investment properties amounted to Rp 544,781,346. Those inventories and property and
equipment were reclassified to investment properties when they were intended to generate rental revenue.
Rental revenue earned from investment properties amounted to Rp 21,676,696,098 for period ended March 31,
2011 and Rp 70,390,281,725 for the year ended December 31, 2010.
35

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Depreciation charges are allocated as follows:
March 31, 2011
Rp
Cost of Sales and Services
General and Administrative Expense
Total Depreciation Expense

December 31, 2010


Rp

2,991,931,767
2,081,171,212
5,073,102,979

12,200,180,872
9,279,505,673
21,479,686,545

The Companys investment properties have been insured against fire damage and other risks to PT Lippo
General Insurance Tbk, related party, with sum insured amounted to Rp 341.7 billion as of March 31, 2011 and
December 31, 2010, respectively. The Company and subsidiaries management were in opinion that the sum
insured is adequate to cover any possible losses.
12. Property and Equipment

Beginning
Balance
Rp

Addition

March 31, 2011


Deduction

Reclassification

Rp

Rp

Rp

Ending
Balance
Rp

Acquisition Cost
Direct Ownership
Land
Building, Infrastructure and Renovations
Parks and Interiors
Golf Course and Club House
Transportation Equipment and Vehicles
Furniture Fixtures and Office Equipment
Tools and Medical Equipment
Machinery and Project Equipment
Bowling Machinery
Playground Areas
Sub Total
Assets under Finance Lease
Construction in Progress
Total Acquisition Cost

289,359,411,869
501,468,320,680
20,870,163,890
168,182,844,789
27,472,340,628
328,807,744,262
403,939,873,178
152,774,839,260
14,385,991,861
3,135,746,092
1,910,397,276,509
191,830,000
104,213,945,447
2,014,803,051,956

14,984,140,580
85,695,887,363
-18,500,010
1,853,805,334
27,649,805,994
91,839,390,676
1,691,843,431
--223,733,373,388
-59,511,105,835
283,244,479,223

----13,575,000
92,500,000
----106,075,000
--106,075,000

(50,791,167)
17,968,090,983
--18,666,666
1,776,239,656
(228,173,281)
270,415,074
--19,754,447,931
-(21,717,180,599)
(1,962,732,668)

304,292,761,282
605,132,299,026
20,870,163,890
168,201,344,799
29,331,237,628
358,141,289,912
495,551,090,573
154,737,097,765
14,385,991,861
3,135,746,092
2,153,779,022,828
191,830,000
142,007,870,683
2,295,978,723,511

Accumulated Depreciation
Direct Ownership
Building, Infrastructure and Renovations
Parks and Interiors
Golf Course and Club House
Transportation Equipment and Vehicles
Furniture Fixtures and Office Equipment
Tools and Medical Equipment
Machinery and Project Equipment
Bowling Machinery
Playground Areas
Sub Total
Assets under Finance Lease
Total Accumulated Depreciation

111,055,091,073
17,043,115,891
115,303,326,467
19,264,052,975
252,332,706,809
191,782,402,984
84,048,201,964
14,272,033,272
3,135,746,092
808,236,677,527
191,830,000
808,428,507,527

21,703,028,316
371,873,646
1,808,615,263
1,607,356,746
13,440,647,874
24,627,269,318
3,137,666,742
--66,696,457,905
-66,696,457,905

---49,590,303
-----49,590,303
-49,590,303

(1,541,103,544)
--19,124,168
(325,578,043)
(220,654,609)
104,766,116
713,244
-(1,962,732,668)
-(1,962,732,668)

131,217,015,845
17,414,989,537
117,111,941,730
20,840,943,586
265,447,776,640
216,189,017,693
87,290,634,822
14,272,746,516
3,135,746,092
872,920,812,461
191,830,000
873,112,642,461

Carrying Value

1,206,374,544,429

1,422,866,081,050

36

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Beginning
Balance
Rp

Addition

December 31, 2010


Deduction

Rp

Rp

Correction/
Reclassification
Rp

Ending
Balance
Rp

Acquisition Cost
Direct Ownership
Land
Building, Infrastructure and Renovations
Parks and Interiors
Golf Course and Club House
Transportation Equipment and Vehicles
Furniture Fixtures and Office Equipment
Tools and Medical Equipment
Machinery and Project Equipment
Bowling Machinery
Playground Areas
Sub Total
Assets under Finance Lease
Construction in Progress
Total Acquisition Cost

302,826,803,774
498,376,261,259
20,296,594,123
166,999,719,857
22,522,232,431
307,406,423,243
245,291,159,735
137,120,945,514
14,385,991,861
3,536,633,375
1,718,762,765,172
1,896,813,500
245,752,916,546
1,966,412,495,218

741,108,095
27,399,979,052
573,569,767
1,259,502,376
5,251,480,727
21,467,800,152
156,347,049,627
6,366,565,350
--219,407,055,146
-111,219,957,472
330,627,012,618

13,365,000,000
38,663,844,292
--631,132,432
673,543,146
25,658,135
172,947,900
--53,532,125,905
--53,532,125,905

(843,500,000)
14,355,924,661
-(76,377,444)
329,759,902
607,064,013
2,327,321,951
9,460,276,296
-(400,887,283)
25,759,582,096
(1,704,983,500)
(252,758,928,571)
(228,704,329,975)

289,359,411,869
501,468,320,680
20,870,163,890
168,182,844,789
27,472,340,628
328,807,744,262
403,939,873,178
152,774,839,260
14,385,991,861
3,135,746,092
1,910,397,276,509
191,830,000
104,213,945,447
2,014,803,051,956

Accumulated Depreciation
Direct Ownership
Building, Infrastructure and Renovations
Parks and Interiors
Golf Course and Club House
Transportation Equipment and Vehicles
Furniture Fixtures and Office Equipment
Tools and Medical Equipment
Machinery and Project Equipment
Bowling Machinery
Playground Areas
Sub Total
Assets under Finance Lease
Total Accumulated Depreciation

100,677,427,451
14,735,083,023
106,170,433,407
18,435,563,379
218,090,815,403
173,943,979,066
70,208,162,956
14,241,375,456
3,502,354,774
720,005,194,915
745,949,638
720,751,144,553

27,303,087,873
2,308,032,868
9,353,186,350
1,000,625,335
34,265,032,618
23,227,836,770
13,393,457,873
30,657,816
504,034
110,882,421,537
-110,882,421,537

16,523,081,980
--566,852,432
95,117,205
16,699,802
36,715,010
--17,238,466,429

(402,342,271)
-(220,293,290)
394,716,693
71,975,993
(5,372,713,050)
483,296,145
-(367,112,716)
(5,412,472,496)
(554,119,638)
(5,966,592,134)

111,055,091,073
17,043,115,891
115,303,326,467
19,264,052,975
252,332,706,809
191,782,402,984
84,048,201,964
14,272,033,272
3,135,746,092
808,236,677,527
191,830,000
808,428,507,527

Carrying Value

17,238,466,429

1,245,661,350,665

1,206,374,544,429

Depreciation charges are allocated as follows:


March 31, 2011
Rp

December 31, 2010


Rp

General and Administrative Expenses


Cost of Sales and Services
Distribution Expenses

20,706,451,410
6,084,720,053
1,323,750,503

65,881,266,199
29,808,662,072
15,192,493,266

Total Depreciation Charges

28,114,921,966

110,882,421,537

The disposal of property and equipment represents sale of assets with details as follows:
March 31, 2011
Rp
Acquisition Cost
Accumulated Depreciation
Carrying Value
Selling Price
Gain on Disposal
Deferred Gain on Sale and Leaseback Transaction (Note 20)
Gain on Disposal Credited to Statement of Income

106,075,000
49,590,303
56,484,697
75,574,697
19,090,000
-19,090,000

37

December 31, 2010


Rp
53,532,125,905
17,238,466,429
36,293,659,476
220,929,025,288
184,635,365,812
178,461,683,217
6,173,682,595

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
PT East Jakarta Medika (EJM) sold land and building of Siloam Cikarang Hospital (the Property) to PT Graha
Pilar Sejahtera (GPS) at the selling price of SGD 33,333,333 and leaseback the Property (see Note 33.b). In
relation of this transaction, EJM recognized gain on sale Property amounted to Rp 5,949,923,669 and deferred
gain on sale and leaseback amounted to Rp 178,461,683,217.
In 2010, the Company had reclassified property and equipment to investment properties (see Note 11)
amounted to Rp 843,500,000 and to inventories amounted to Rp 221,894,237,841 (see Note 7).
In 2011, additions of the property and equipment include the property and equipment of acquired companies
(see Note 1.c), with acquisition cost of Rp 162,193,197,898 and accumulated depreciation of
Rp 38,581,535,939.
Land and building, machinery and office equipment and medical equipment of PT Balikpapan Damai Husada, a
subsidiary, was pledged as collateral for loans obtained from Bank Pembangunan Daerah Kalimantan Timur
(see Note 15.a).
Land and building, Vehicles, machinery and office equipment and medical equipment of PT Golden First
Atlanta, a subsidiary, was pledged as collateral for loans obtained from PT Bank Central Asia (see Note 15.b).
Land and building with areas of 82,478 sqm and 781 sqm located at Tanjung Merdeka, Makassar were pledged
as collateral for loan obtained by PT Gowa Makassar Tourism Development Tbk, a subsidiary, from PT Bank
Agroniaga Tbk (see Note 15.c).
There is no borrowing cost capitalized into property and equipment.
All the Company and subsidiaries property and equipment have been insured to PT Lippo General Insurance
Tbk, related party, PT Asuransi Bintang Tbk and PT Maskapai Asuransi Sonwelis, third parties against fire
damage and other risks, with sum insured amounted to Rp 1,547 billion, SGD 35,584,286 and
USD 33,359,623 as of March 31, 2011 and December 31, 2010, respectively. The Company and subsidiaries
management were in opinion that the sum insured is adequate to cover any possible losses.
The Company and subsidiaries management were in opinion that there is no impairment in the carrying value
of property and equipment as of March 31, 2011.
13. Intangible Assets
March 31, 2011
Rp
Excess of Acquisition Cost over the Subsidiaries Net Assets
Acquisition Cost of Software
Total
Less: Accumulated Amortization
Total Intangible Assets - Net

38

December 31, 2010


Rp

342,064,609,865
5,906,113,407
347,970,723,272
(136,554,621,872)

234,065,201,770
5,062,808,194
239,128,009,964
(134,504,453,123)

211,416,101,400

104,623,556,841

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
The excess of acquisition cost over the subsidiaries net assets represents the difference arising from
acquisition of PT Nuansa Indah Lestari, PT Aresta Amanda Lestari, PT Aresta Permata Utama, PT Fajar
Usaha Semesta, PT Fajar Raya Cemerlang, PT Fajar Abadi Aditama, PT Gowa Makassar Tourism
Development Tbk by the Company for Rp 96,070,942,680; acquisition of PT Unitech Prima Indah by
PT Ariasindo Sejati, a subsidiary, for Rp 5,470,663,157; acquisition of PT Pendopo Niaga by PT Lipposindo,
a subsidiary, for Rp 246,980,535, acquisition of PT Jagat Pertala Nusantara by PT Lippo Vacation,
a subsidiary, for Rp 17,621,494,991; acquisition of PT Menara Perkasa Megah by PT Wisma Jatim
Propertindo, a subsidiary, for Rp 1,151,986,397; acquisition of PT Menara Bhumimegah by PT Kemang Village,
a subsidiary, for Rp 1,707,831,551; acquisition of PT Persada Mandiri Dunia Niaga by PT Wisma Jatim
Propertindo, a subsidiary, for Rp 1,542,978,254; acquisition of PT Almaron Perkasa by PT Wahana Usaha
Makmur, a subsidiary for Rp 6,114,426,687; acquisition of PT Direct Power by PT Wisma Jatim Propertindo,
a subsidiary, for Rp 9,258,357,865; acquisition PT Mujur Sakti Graha by PT Prima Kreasi Propertindo,
a subsidiary, for Rp 1,165,878,505; and acquisition of PT Graha Solusi Mandiri by PT Primakreasi Propertindo,
a subsidiary, for Rp 38,067,060,305. The addition in 2008 represents acquisition of PT Adhi Utama Dinamika
by PT Wahana Usaha Makmur and PT Almaron Perkasa, both are subsidiaries, for Rp 24,783,975,543;
acquisition of PT Pamor Paramitha Utama by PT Berkat Langgeng Jaya, a subsidiary, for Rp 10,027,716,935;
acquisition of PT Berkat Langgeng Jaya by PT KutaBeach Paragon, a subsidiary, for Rp 3,111,072,589;
acquisition of PT Buana Mandiri Selaras by PT Mahaduta Purnama, a subsidiary, for Rp 1,173,290,123, and
acquisition of PT Nusa Medika Perkasa by PT Perdana Kencana Mandiri, PT Multiselaras Anugrah, and
PT Aritasindo Permai Semesta, all subsidiaries, for Rp 16,550,545,653. In 2011, acquisition of PT Balikpapan
Damai Husada by PT Prawira Tata Semesta (PTS), a subsidiary, for Rp 29,312,616,643, acquisition of PTS by
PT Siloam International Hospitals, a subsidiary, for Rp 55,146,465,217 and acquisition of PT Guchi Kencana
Emas by PT Siloam International Hospitals, a subsidiary, for Rp 23,540,326,235 (see Note 1.c).
14. Other Assets
March 31, 2011
Rp

December 31, 2010


Rp

Deferred Charges
Restricted Funds
Project Advances
Others

156,615,309,462
113,400,784,756
11,941,180,245
33,758,995,196

143,749,535,621
93,352,635,515
11,834,755,354
20,599,486,878

Total Other Assets

315,716,269,659

269,536,413,368

Deferred charges represents the Companys training and development of professional employees for
preparation of Mochtar Riady Comprehensive Cancer Center operation, and marketing and sales expenditures
incurred by PT Almaron Perkasa and PT Mandiri Cipta Gemilang, subsidiaries, for Kemang Village and
St. Moritz project, respectively. The cost will be amortized systematically in accordance with recognition of
revenue from the abovementioned projects.
Restricted fund represents the Company and subsidiaries time deposits placement in relation to mortgages
agreements (KPR and KPA) entered by the Company and subsidiaries with their respective banks. These
deposits earn an equal interest to the Rupiahs denominated time deposits owned by the Company and
subsidiaries (see Note 3).

39

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
c.

PT Bank Agroniaga Tbk


Based on Credit Agreement No. 73 dated June 23, 2004 which has been extended up several times,
latest by Credit Agreement Letter No. AB/cr.S/043/PPK/IX/2010 dated September 30, 2010, PT Gowa
Makassar Tourism Development Tbk (GMTD), a subsidiary, obtained an approval alteration of credit
facility became as follows:
Pinjaman Tetap Reguler (PTR I) Non Revolving amounted to Rp 16,500,000,000
Pinjaman Tetap Reguler (PTR II) Revolving amounted to Rp 7,000,000,000
This facility is secured by collaterals as follows:
13 (thirteen) parcel of land with area of 183,480 sqm, consist of Right to Build (HGB) Nos. 20001,
20002, 20003, 20004, 20005, 20006, 20007, 20008, 20009, 20010, 20011, 20012 and 20013
located in Barombong Village, Tamalate District, Makassar, South Sulawesi Province registered
under the name of GMTD.
Land and building with area of 82,478 sqm and 781 sqm, respectively, based on HGB No. 20588
located in Tanjung Merdeka, Tamalate District, Makassar, South Sulawesi Province registered under
the name of GMTD.
Interest expense and other borrowing cost capitalized into inventories for period ended March 31, 2011
and for the year ended December 31, 2010 amounted to Rp 160,565,297 and Rp 1,731,605,478,
respectively (see Note 7) and capitalized into land for development for period ended March 31, 2011 and
for the year ended December 31, 2010 amounted to Rp 142,352,264 and Rp 1,535,688,268, respectively
(see Note 10).
There is no restrictive financial ratio which should be maintained by GMTD.
As of March 31, 2011 and December 31, 2010, the outstanding balance of this loan amounted to
Rp 5,000,000,000 and Rp 11,450,000,000, respectively.

d.

PT Bank Negara Indonesia (Persero) Tbk


Based on Deed of Credit Agreement No. 34 dated October 30, 2006 made in presence of H. Zamri,
S.H., a notary in Jakarta, which was renewed by Deed of Credit Agreement No. 46 dated March 29,
2007 of the same notary, the Company obtained a Working Capital Credit facility with maximum
amount of Rp 250,000,000,000 and bears an annual interest rate of 13.5%. This loan was used to
finance property and other businesses, except for land acquisition and matured on October 29,
2007. Furthermore, based on Deed of Credit Agreement No. 44 dated March 29, 2007 made in
presence of H. Zamri, S.H., a notary in Jakarta, the Company obtained additional Working Capital
Credit facility with maximum amount of Rp 20,000,000,000 resulting in total Working Capital Credit
facility amounted to Rp 270,000,000,000. This loan bears an annual interest rate of 13.5% and
matured on October 29, 2007. These loans have been extended to October 29, 2008. Based on
Amendment of Credit Agreement Nos. 34 and 44 dated November 3, 2009, respectively, these loans
were extended starting from October 30, 2008 to June 12, 2010 and can be extended with written
approval of both parties. Based on amendment of Credit Agreement Nos. (4) 34 and (3) 44, these
loan have been extended to June 12, 2011.

Based on Deed of Credit Agreement No. 45 dated March 29, 2007 made in presence of H. Zamri,
S.H., a notary in Jakarta, the Company obtained a term loan credit facility with maximum amount of
Rp 270,000,000,000. This loan bears an annual interest rate of 13.5%. The loan was used to finance
the Companys projects in Urban Development, Large Scale Integrated Development, Retail Malls,
Healthcare and Hospitality and Infrastructure, except for land acquisition and matured on March 29,
2011.

41

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Both facilities are secured by collaterals as follows:
14 (fourteen) parcels of land with area of 109,145 sqm, consist of part of Right to Build (HGB)
Nos. 2588, 2591, 2592, 2623, 2684, 2685, 2686, 2696, 2722, 3089, 3088, 3638, 1810, and 1811
registered under the name of PT Mandiri Cipta Gemilang, a subsidiary;
Property and other trade accounts receivable (excluding account receivable from land sold) amounted
to Rp 340.6 billion.
Interests and other borrowing costs capitalized into inventories as of March 31, 2011 and December 31,
2010 amounted to Rp 7,615,515,903 and Rp 59,735,186,913, respectively (see Note 7).
Based on loan agreement the Company, among others, needs to maintain as follows:
Current ratios minimum 1 x;
Debt equity ratios maximum 2.7 x; and
Debt service coverage minimum 100%.
Both loans have been fully paid by the Company on March 10, 2011.
e.

Bonds
March 31, 2011
Rp

December 31, 2010


Rp

Nominal (2011: USD 395,608,000 and 2010: USD 336,854,000)


Premium
Bond Issuance Cost - Net

3,445,350,072,000
84,614,871,109
(134,646,747,270)

3,028,654,314,000
-(112,413,773,710)

Total

3,395,318,195,839

2,916,240,540,290

Bond Issuance Costs


Less: Accumulated Amortization

153,189,136,408
(18,542,389,118)

185,559,382,173
(73,145,608,463)

Unamortized Bond Issuance Cost

134,646,747,290

112,413,773,710

On March 9, 2006, Lippo Karawaci Finance B.V., a subsidiary, issued unsecured bonds with nominal
value of USD 250,000,000 and annual interest rate of 8.875% and were listed in Singapore Stock
Exchange. The bond has 5 years period and will due on March 9, 2011. Payments of interest will be
conducted every 6 months. As of December 31, 2010, the outstanding accrued interest expense
amounted to USD 1,828,390 (equivalent to Rp 16,439,050). On May 11, 2010, part of bonds amounted to
USD 183,754,000 was exchanged with bonds issued by Sigma Capital Pte. Ltd., a subsidiary. This Bond
has been fully paid on March 9, 2011.
In relation to exchange offer program of bonds, on May 11, 2010, Sigma Capital Pte. Ltd. (SC), a
subsidiary, issued unsecured bonds with nominal value of USD 270,608,000 and furthermore on February
17, 2011, SC issued unsecured bonds with nominal value of USD 125,000,000. Both bonds bear an
annual interest rate of 9% and were listed in Singapore Stock Exchange and will due on April 30, 2015.
Payments of interest will be conducted every 6 months. As of March 31, 2011 and December 31, 2010,
accrued interest expense amounted to USD 14,835,300 and USD 4,059,120 (equivalent to
Rp 129,200,627,700 and Rp 36,495,547,920), respectively.

42

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Interest expense and other borrowing cost capitalized into inventories for the period ended March 31,
2011 and for the year ended December 31, 2010 amounted to Rp 72,070,861,002 and
Rp 354,789,879,473, respectively (see Note 7).
This bonds have been rated B+ by Standard & Poor's, B1 by Moody's and B+ by Fitch.
The Company has to comply with certain restrictions under bond covenants as stipulated in Offering
Circular.
The Company has entered into Non Deliverable USD Call Spread Option facility agreements with certain
third parties to hedge foreign exchange fluctuation risk on this foreign currency bond (see Note 33.c).
16. Accrued Expenses
March 31, 2011
Rp

December 31, 2010


Rp

Estimated Cost for Construction


Interest
Transfer of Ownership Tax
Hedging Premium
Endowment Care Fund
Professional Fees
Electricity, Water and Telephone
Salaries and Employees Benefits
Others

309,889,180,884
130,952,430,843
26,497,622,934
16,506,627,416
15,483,161,777
12,422,041,790
7,935,476,555
7,112,240,584
47,279,062,922

310,549,884,908
56,279,388,686
25,183,410,755
10,752,187,050
21,596,987,047
5,615,267,862
8,067,017,486
3,173,775,373
46,135,741,256

Total Accrued Expenses

574,077,845,705

487,353,660,423

17. Taxation
a.

Income Tax Benefit (Expense)


March 31, 2011
Rp

March 31, 2010


Rp

Current
Deferred

(36,309,667,486)
(6,972,501,016)

(20,994,748,133)
7,291,949,384

Total Income Tax Expense

(43,282,168,502)

(13,702,798,749)

43

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Reconciliation between income before income tax expense as presented in the consolidated statements
of income, and the Companys taxable income is as follows:
March 31, 2011
Rp
Income before Income Tax Expense as Presented
in Consolidated Statements of Income
Deduct:
Income from Subsidiaries
The Companys Commercial Income

March 31, 2010


Rp

204,397,849,765

145,823,289,279

218,888,358,864
(14,490,509,099)

104,025,283,362
41,798,005,917

--(1,001,904,194)
(1,825,861,686)
(2,827,765,880)

28,416,392
(14,185,984)
(657,899,455)
(1,825,861,686)
(2,469,530,733)

Permanent Differences
Expense of Income Subjected to Final Tax
Donation and Representation
Interest Income
Income Subject to Final Tax - Net
Sub Total

54,904,599,354
170,583,626
(29,138,599,494)
(38,870,848,724)
(12,934,265,238)

6,652,815,083
320,427,655
(929,249,676)
(77,693,337,277)
(71,649,344,215)

The Company's Estimated Tax Loss

(30,252,540,217)

(32,320,869,031)

Temporary Differences
Depreciation of Assets Under Finance Lease
Amortization of Deferred Charges
Depreciation of Direct Ownership of Property and Equipment
Deferred Gain on Sale and Leaseback Transactions
Sub Total

Calculation of estimated current income tax and tax payable is as follows:


March 31, 2011
Rp
The Company
Estimated Tax Loss

March 31, 2010


Rp

(30,252,540,217)

(32,320,869,031)

62,892,846,445

15,514,227,708

13,631,158,966
-13,631,158,966

3,878,556,927
-3,878,556,927

Final Tax Expense


The Company
Subsidiaries
Consolidated Final Tax Expense

1,631,693,809
21,046,814,711
22,678,508,520

3,632,108,043
13,484,083,163
17,116,191,206

Consolidated Income Tax Expense

36,309,667,486

20,994,748,133

Consolidated Income Tax Payable Article 29


Estimated Consolidated Income Tax Article 29
Prior Year Income Tax Article 29

13,631,158,966
96,629,845,755

3,878,556,927
56,382,375,418

110,261,004,721

60,260,932,345

Subsidiaries
Estimated Taxable Income
Current Income Tax
Tax Credit
Estimated Income Tax of Subsidiaries Article 29

Total Consolidated Income Tax Payable Article 29

44

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Reconciliation between tax expense and the multiplication of the consolidated income before income tax
with the prevailing tax rate is as follows:
March 31, 2011
Rp
Income before Income Tax Expense According to the
Consolidated Statements of Income
Deduct:
Income of Subsidiaries
The Companys Commercial Income

204,397,849,765

145,823,289,279

218,888,358,864
(14,490,509,099)

104,025,283,362
41,798,005,917

Income Tax Expense at Effective Tax Rate 25%


Income Subject to Final Tax - Net
Interest Income
Donation and Representation
Tax Loss
Expense of Income Subjected to Final Tax
Income Tax Expense of the Company
Final Tax Expense of the Company
Total Income Tax Expense of the Company

3,622,627,275
9,717,712,181
7,284,649,873
(42,645,907)
(7,563,135,054)
(13,726,149,839)
(706,941,471)
(1,631,693,809)
(2,338,635,280)

(10,449,501,479)
19,423,334,319
232,312,419
(80,106,914)
(8,080,217,258)
(1,663,203,771)
(617,382,684)
(3,632,108,043)
(4,249,490,727)

Income Tax Expense of the Subsidiaries


Deferred Tax of the Subsidiaries
Current Tax of the Subsidiaries
Final Tax Expense of the Subsidiaries
Total Income Tax Expense of the Subsidiaries

(6,265,559,545)
(13,631,158,966)
(21,046,814,711)
(40,943,533,222)

7,909,332,068
(3,878,556,927)
(13,484,083,163)
(9,453,308,022)

(43,282,168,502)

(13,702,798,749)

Total Income Tax Expense

b.

March 31, 2010


Rp

Deferred Tax Asset Net


Detail of deferred tax assets and liabilities as presented in the consolidated balance sheets as of
March 31, 2011 and December 31, 2010 is as follows:
January 1, 2010

Rp
The Company
Amortization of Deferred Income from Sale
and Lease Back Transactions
Estimated Liabilities on Employees Benefits
Allowance for Doubtful Accounts
Amortization of Deferred Expense
Depreciation

Charged to
Consolidated
Statements of
Income
Rp

December 31, 2010

Rp

Subsidiaries

21,804,924,745
16,352,576,986
3,772,701,536
3,546,496
(7,353,881,702)
34,579,868,061
26,549,743,687

(1,825,861,686)
(10,835,548,730)
(807,074,928)
(3,546,496)
(76,355,939)
(13,548,387,779)
25,055,582,072

19,979,063,059
5,517,028,256
2,965,626,608
-(7,430,237,641)
21,031,480,282
51,605,325,759

Deferred Tax Assets - Net

61,129,611,748

11,507,194,293

72,636,806,041

45

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
December 31, 2010

Rp
The Company
Amortization of Deferred Income from Sale
and Lease Back Transactions
Estimated Liabilities on Employees Benefits
Allowance for Doubtful Accounts
Depreciation

c.

Charged to
Consolidated
Statements of
Income
Rp

March 31, 2011

Rp

Subsidiaries

19,979,063,059
5,517,028,256
2,965,626,608
(7,430,237,641)
21,031,480,282
51,605,325,759

(456,465,422)
--(250,476,049)
(706,941,471)
(6,265,559,545)

19,522,597,637
5,517,028,256
2,965,626,608
(7,680,713,690)
20,324,538,811
45,339,766,214

Deferred Tax Assets - Net

72,636,806,041

(6,972,501,016)

65,664,305,025

Taxes Payable
March 31, 2011
Rp

December 31, 2010


Rp

Income Tax
Article 25/29
Final
Article 23
Article 21
Article 26
Value Added Tax
Hotel and Restaurant Tax
Entertainment Tax

110,261,004,721
26,275,025,283
25,729,570,468
8,113,458,890
136,294,650
29,697,944,468
2,489,143,285
607,121,645

97,275,355,671
26,863,044,134
2,488,509,563
8,363,788,639
23,047,376,387
41,307,611,464
2,341,188,903
607,121,645

Total Taxes Payable

203,309,563,410

202,293,996,406

The Company received Under Payment Tax Assessment Letters (SKPKB) for Income Tax Article 23,
Income Tax Article 26 and Value Added Tax amounted to Rp 16.2 billion, Rp 73.1 billion and Rp 18.7
billion, respectively for fiscal year 2007, meanwhile for fiscal year 2008, the Company also received
SKPKB for Income Tax Article 21, Income Tax Article 23, Income Tax Article 26, Income Tax Article 4(2)
and Income Tax Article 29 amounting to Rp 759 million, Rp 1.6 billion, Rp 7.1 billion, Rp 778 million,
Rp 11.45 billion, respectively. The Company objected for all SKPKB.
On October 25, 2010, the Company received a Decision Letter No. KEP-1037/WPJ.07/2010 and
No: KEP 1039/WPJ.07/2010 from tax office which rejected the Companys objection on SKPKB. The
Company filed an appeal to such decision for income tax article 26 and until the completion date of the
consolidated financial statements, the Company has not received the decision from Tax Court.

46

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
18. Advance from Customers
March 31, 2011
Rp
Third Parties
Apartment
Residential Houses and Shophouses
Land Lots
Shopping Centers
Total Advance from Customers

December 31, 2010


Rp

355,495,649,540
944,871,243,921
243,047,186,471
225,376,416,430

742,933,483,836
392,699,251,812
317,524,174,081
225,432,863,245

1,768,790,496,362

1,678,589,772,974

Details of the percentage of advances from customer to sales price on March 31, 2011 and December 31,
2010:
March 31, 2011
Rp

December 31, 2010


Rp

100%
50% - 99%
20% - 49%
below 20%

1,050,785,023,099
318,434,214,977
321,912,637,986
77,658,620,300

1,011,478,106,884
257,375,012,910
341,937,536,831
67,799,116,349

Total

1,768,790,496,362

1,678,589,772,974

19. Deferred Income


March 31, 2011
Rp
Related Parties
Rent (see Note 9)
Third Parties
Rent
Excess of Net Assets over Acquisition Cost - Net
Guest and Patients' Deposits
Total Deferred Income

47

December 31, 2010


Rp

802,842,894,420

776,312,009,263

85,439,958,793
-11,577,998,841
97,017,957,634

80,478,700,928
45,143,095,372
8,995,740,726
134,617,537,026

899,860,852,054

910,929,546,289

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
20. Deferred Gain on Sale and Leaseback Transaction
March 31, 2011
Rp
Acquisition Cost
Accumulated Depreciation
Carrying Value
Proceeds
Less: Gain Credited to Statement of Income
Deferred Gain on Sale and Leaseback Transations
Foreign Exchange
Accumulated Amortization

December 31, 2010


Rp

474,480,916,099
127,538,766,701
346,942,149,398
1,246,965,217,595
5,949,923,669
894,073,144,528
(20,597,368,462)
(204,648,077,522)

474,480,916,099
127,538,766,701
346,942,149,398
1,246,965,217,595
5,949,923,669
894,073,144,528
(5,840,960,634)
(192,595,003,697)

668,827,698,544

695,637,180,197

Deferred Gain on Sale and Leaseback - Net

Deferred gain on sale and leaseback transactions is amortized proportionally over 15 years of lease period
using the straight line method (see Note 33.b).
21. Estimated Liabilities on Employees Benefits
The Company and subsidiaries appointed independent actuaries to determined and recognized liabilities on
employees benefits in accordance with the existing manpower regulations. Estimated liabilities on employees
benefits as of December 31, 2010 was calculated by PT Jasa Aktuaria Japa and PT Dayamandiri
Dharmakonsilindo whose reports dated January 12, 2011, respectively. Management is in the opinion that the
estimate of employees benefits is sufficient to cover such liabilities.
Reconciliation of changes on liabilities recognized in consolidated balance sheets:
December 31, 2010
Rp
Liabilities at Beginning of the Year
Payment of Employees Benefit in Current Year
Companys Contribution
Recognized Employees' Benefit Expense in Current Year

112,248,363,748
(17,973,978,002)
373,312,533
22,441,750,560

Estimated Employees Benefits Liabilities as at Balance Sheets Date

117,089,448,839

Present value of liability, related current service cost and past service cost has been calculated by independent
actuaries by using the following assumptions:
2010
Interest Rates
Salary Increase Projection Rate
Mortality Rate
Permanent Disability Rate
Withdrawal Rate

: 10%
: 8%
: Indonesia II
: 10% x TMI II
: 1% for age 18 44,
0% for age 45 54
: None

Proportion Method Intake of


Normal Pension Method
Method

: Projected Unit Credit

48

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
22. Capital Stock
The Companys stockholders composition as of March 31, 2011 and December 31, 2010 are as follows:
Stockholders

March 31, 2011


Percentage
Ownership
%

Total
Shares

Issued
and Fully Paid
Rp

Pacific Asia Holdings Ltd


Fidelity Magellan Fund
Capital Bloom Investment Ltd
Others (each less than 5%)

3,039,619,908
1,227,975,625
1,138,293,750
16,221,800,336

14.05
303,961,990,800
5.68
122,797,562,500
5.26
113,829,375,000
75.00 1,622,180,033,600

Total

21,627,689,619

100.00 2,162,768,961,900

Stockholders

December 31, 2010


Percentage
Issued
Ownership
and Fully Paid
%
Rp

Total
Shares

Pacific Asia Holdings Ltd


Fidelity Magellan Fund
Capital Bloom Investment Ltd
Others (each less than 5%)
Total

3,039,619,908
1,227,975,625
1,138,293,750
16,221,800,336
21,627,689,619

14.05
303,961,990,800
5.68
122,797,562,500
5.26
113,829,375,000
75.00 1,622,180,033,600
100.00 2,162,768,961,900

In December 2010, the Company issued 4,325,537,924 new shares (see Note 1.b) through Limited Public
Offering III. On December 29, 2010, these shares were listed in Indonesia Stock Exchange.
23. Additional Paid-in Capital Net
March 31, 2011
Rp

December 31, 2010


Rp

Rights Issue I
Premium on Stock
Stock Issuance Cost
Sub Total

87,283,750,000
(11,844,180,664)
75,439,569,336

87,283,750,000
(11,844,180,664)
75,439,569,336

Rights Issue II
Premium on Stock
Stock Issuance Cost
Sub Total

485,048,197,150
(7,442,812,013)
477,605,385,137

485,048,197,150
(7,442,812,013)
477,605,385,137

Premium on Exercising Warrant Series I

659,475,970,000

659,475,970,000

49

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
March 31, 2011
Rp
Excess of Market Value Over Par Value of Stock Issued
in Business Combination Exercised under Purchase Method

December 31, 2010


Rp

91,701,282,075

91,701,282,075

Addition:
Rights Issue III
Premium on Stock
Stock Issuance Cost
Sub Total

1,946,492,065,800
(11,801,914,895)
1,934,690,150,905

1,946,492,065,800
(5,977,083,038)
1,940,514,982,762

Total Additional Paid-in Capital - Net as of December 31, 2010

3,238,912,357,453

3,244,737,189,310

The excess of market value over par value of stock issued during business combination exercised under
purchase method represents the difference between the highest share price reached during the 90 day period
prior to the announcement of the business combination and par value of the Companys issued shares.
Premium on exercising Warrant Series I represents the difference between warrant execution price and par
value.
24. Difference in Value from Restructuring Transactions between Entities Under
Common Control Net
Rp
Transaction from Before Business Combination
Net Asset Value of PT Saptapersada Jagatnusa
Acquisition Cost
Difference in Value

322,884,648
(5,000,000,000)
(4,677,115,352)

Transaction from Business Combination


Net Asset Value of Siloam
Acquisition Cost
Difference in Value
Realization in 2009
Net
Net Asset Value of Lippo Land
Acquisition Cost
Difference in Value

275,837,221,176
(85,173,967,500)
190,663,253,676
(84,027,724,260)
106,635,529,416
69,227,950,557
(265,747,071,500)
(196,519,120,943)

Net Asset Value of Aryaduta


Acquisition Cost
Difference in Value
Realization in 2009
Net

199,314,766,000
(39,637,690,500)
159,677,075,500
(45,581,021,356)
114,096,054,144

Total - Net

19,535,347,265

Difference in value from the restructuring transaction of PT Saptapersada Jagatnusa (SPJN), was incurred
during the acquisition of SPJN by the Company in 2001.

50

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Difference in value from restructuring transactions between entities under common control from business
combination amounted to Rp 190,663,253,676, (Rp 196,519,120,943), and Rp 159,677,075,500, respectively,
was incurred from the merger of ex Siloam (including ex Sumber Waluyo), ex Lippo Land, and ex Aryaduta in
2004. The difference was determined from the difference in net asset value of ex Siloam (including ex Sumber
Waluyo), ex Lippo Land, and ex Aryaduta and the nominal value of new shares issued by the Company.
The realization of difference in value from restructuring transactions between entities under common control
amounting to Rp 129,608,745,616 due to disposal of land and building of hospital and hotel and presented as
part of other income others net in 2009.
25. Unrealized Gain (Loss) on Changes in Fair Value of Available-for-Sale Financial
Assets
March 31, 2011
Rp
Investment in FREIT (see Note 4)
Bridgewater International Ltd
Bowsprit Capital Pte Ltd
Investment in LMIRT (see Note 4)
Lippo Mappletree Indonesia RTM Ltd
Unrealized Gain on Changes in Fair Value of
Available-for-Sale Financial Assets

December 31, 2010


Rp

110,369,144,031
12,848,959,612

(11,327,794,104)
10,091,153,200

30,943,495,142

26,820,202,955

154,161,598,785

25,583,562,051

26. Cash Dividend and Reserved Fund


Based on Deed of Annual General Meeting of Shareholders Resolution No. 1 dated May 3, 2010 of Unita
Christina Winata, S.H., a notary in Tangerang, the Companys shareholders approved among others, no
dividend for the year ended December 31, 2009 and to increase the reserved fund amounted to
Rp 1,000,000,000 from retained earnings of 2009.
On December 1, 2010, the Company paid interim dividend amounted to Rp 2.88 per share.
Based on Deed of Annual General Meeting of Shareholders Resolution No. 13 dated February 23, 2011 of
Unita Christina Winata, S.H., a notary in Tangerang, the Companys shareholders approved among others,
disbursement of final cash dividend amounted to Rp 150 billion.

51

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
27. Net Sales, Services and Other Revenues
March 31, 2011

March 31, 2010

Rp

Rp

Urban Development:
Land Lots
Residential Houses and Shophouses
Memorial Park
Asset Enhancements
Sub Total

122,557,545,496
122,292,027,925
25,179,211,597
3,560,503,838
273,589,288,856

147,555,365,255
46,355,262,967
20,565,354,244
2,581,857,946
217,057,840,412

Large Scale Integrated Development:


Apartments
Asset Enhancements
Sub Total

131,359,546,761
6,521,938,672
137,881,485,433

90,847,512,369
4,352,088,287
95,199,600,656

Retail Malls:
Asset Enhancements
Shopping Centers
Sales Return of Shopping Centers
Sub Total

31,128,566,062
2,050,691,756
(1,368,456,349)
31,810,801,469

21,115,526,328
2,163,564,940
(4,745,364,288)
18,533,726,980

Healthcare:
Inpatient Department
Medical Support Services and Professional Fees
Drugs and Medical Supplies
Ward Fees
Administration Fees
Operating Theater
Delivery Fees
Others
Outpatient Department
Medical Support Services and Professional Fees
Drugs and Medical Supplies
Registration Fees
Others
Sub Total

63,044,705,432
61,762,007,555
20,983,883,568
7,335,945,225
3,633,665,847
164,970,940
9,407,887,228

56,600,611,033
50,523,889,446
20,268,483,693
7,064,091,456
3,260,519,923
130,460,550
6,251,386,878

76,110,339,388
37,324,281,492
4,117,447,197
3,624,256,876
287,509,390,748

66,031,817,731
30,595,993,941
3,912,130,586
1,964,902,473
246,604,287,710

Hospitality and Infrastructure:


Hotels and Restaurants
Town Management
Water and Sewage Treatment
Recreation and Sports
Others
Sub Total

51,860,301,648
20,529,511,330
20,169,906,950
11,944,702,592
4,572,984,417
109,077,406,937

47,578,312,969
20,940,065,161
17,489,910,670
11,437,767,811
7,444,216,738
104,890,273,349

41,904,975,511

23,094,256,510

881,773,348,954

705,379,985,617

Property and Portfolio Management:


Management Fees
Total Net Sales, Service and Other Revenues

Management fees revenue represents revenue of shopping centers management services and as manager of
REIT. Revenue from asset enhancement represents revenue from rental of the Companys assets.
There are no sales to customer with sales amount above 10% of net revenues for respective periods.
52

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
28. Cost of Sales and Services

Urban Development:
Land Lots
Residential Houses and Shophouses
Memorial Park
Sub Total

March 31, 2011

March 31, 2010

Rp

Rp

74,005,109,274
82,056,747,324
4,849,925,270
160,911,781,868

56,039,494,557
30,421,382,794
3,110,291,628
89,571,168,979

Large Scale Integrated Development:


Apartments
Asset Enhancements
Sub Total

66,626,862,762
414,007,572
67,040,870,334

50,298,099,920
1,767,927,802
52,066,027,722

Retail Malls:
Asset Enhancements
Shopping Centers
Sales Return of Shopping Centers
Sub Total

7,887,406,763
954,211,914
(834,786,531)
8,006,832,146

7,749,078,788
628,378,275
(1,510,252,487)
6,867,204,576

63,375,194,841
44,169,993,199
6,472,956,138
3,955,716,588
3,412,035,355
1,229,923,413
4,021,678,120

53,544,478,648
31,705,536,819
5,994,948,171
3,893,140,483
3,209,505,965
1,200,587,756
3,976,887,389

49,120,963,205
23,704,970,158
4,692,822,999
2,129,003,466
819,148,532
3,477,950,404
210,582,356,418

42,560,415,250
25,955,641,421
5,316,536,604
2,163,740,698
723,081,367
2,824,888,494
183,069,389,065

Hospitality and Infrastructure:


Hotels and Restaurants
Town Management
Water and Sewage Treatment
Recreation and Sports
Others
Sub Total

18,470,692,232
10,169,138,381
6,466,895,838
4,057,481,218
2,474,895,507
41,639,103,176

21,600,279,641
10,978,762,588
6,905,764,223
3,992,563,789
4,480,329,053
47,957,699,294

Property and Portfolio Management:


Management Fees

15,343,372,839

2,992,844,700

Total Cost of Sales and Services

503,524,316,781

382,524,334,336

Healthcare:
Inpatient Department
Salaries and Employees Benefits
Drugs and Medical Supplies
Clinical Supplies
Depreciation
Food and Beverages
Repair and Maintenance
Others
Outpatient Department
Salaries and Employees Benefits
Drugs and Medical Supplies
Clinical Supplies
Depreciation
Repair and Maintenance
Others
Sub Total

There are no purchases above 10% of net revenues for respective periods.

53

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
29. Operating Expenses
a.

b.

Distribution Expenses
March 31, 2011

March 31, 2010

Rp

Rp

Marketing and Advertising


Salaries and Employees Benefits
Repairs and Maintenance
Depreciation
Electricity and Water
Management Fees
Office Supplies
Transportation and Accommodation
Rent
Communication
Others

18,502,523,511
8,356,070,386
5,531,798,001
3,404,921,715
2,672,734,703
2,074,240,445
1,735,830,806
1,280,923,032
990,205,269
313,935,757
869,105,850

11,438,707,947
8,105,002,255
2,553,415,453
3,434,962,968
966,447,229
1,856,530,955
1,447,267,489
1,875,493,641
1,079,882,537
569,058,382
498,919,108

Total Distribution Expenses

45,732,289,475

33,825,687,964

General and Administrative Expenses

Salaries and Employees Benefits


Rent
Depreciation
Water and Electricity
Professional Fees
Transportation and Accommodation
Repairs and Maintenance
Office Supplies
Communication
Training and Seminar
Membership and Subscription Fees
Insurance
Representation and Entertainment
Taxes
Provision for Doubtful Accounts
Others
Total General and Administrative Expenses

March 31, 2011

March 31, 2010

Rp

Rp

50,230,343,968
27,195,223,428
20,706,451,410
14,049,914,785
8,170,851,473
6,062,263,924
5,928,549,008
4,086,430,461
1,997,979,037
943,249,890
790,118,124
773,537,942
535,721,634
458,808,560
-1,772,419,039

45,776,025,124
25,693,484,902
18,761,601,582
12,412,168,927
6,313,405,267
5,248,777,827
6,806,934,476
4,901,166,546
2,461,160,044
1,181,714,668
1,987,398,425
946,635,984
587,625,677
10,687,121
51,229,492
4,045,842,410

143,701,862,683

137,185,858,472

30. Penalties Income (Expenses) Net


This account represents penalties on cancellation of sales transactions, late payments from customers and late
constructions by the Company.

54

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
31. Interest Income (Expenses) Net

Interest Income
Interest Expenses
Total Interest Income (Expenses) - Net

March 31, 2011

March 31, 2010

Rp

Rp

31,200,842,248
(19,408,209,109)

5,068,575,858
(17,865,136,961)

11,792,633,139

(12,796,561,103)

Interest income represents interest earned from bank accounts, cash equivalent and restricted fund (see
Notes 3 and 14), while interest expense represents interest of loans (see Note 15).
32. Basic Earnings Per Share
The calculation basic earning per share is as follows:
March 31, 2011

Residual Net Income (Rupiah)


Weighted Average Number of Common Stocks (Share)
Basic Earnings per Share (Rupiah)

March 31, 2010

136,101,830,111

113,179,713,133

21,627,689,619

17,302,151,695

6.29

6.54

33. Commitments
a.

Operational and Management Agreement

On September 13, 1995, the Company entered into cooperation agreement for the construction and
development of Karawaci Interchange and Crossing Gate of Jakarta-Merak with PT Jasa Marga
(Persero) (JM), based on Deed of Revenue Sharing Agreement No. 84 dated September 13, 1995
made in presence of Agus Madjid, S.H., a notary in Jakarta. The construction shall be completed by
the Company within a certain period as mutually agreed upon by both parties with total project cost
of Rp 31,509,304,000, consisting of Rp 20,113,174,000 for the Karawaci Interchange and
Rp 11,396,130,000 for the Crossing Gate. JM will operate the project upon completion and
reimburse the project cost to the Company amounted to 40.5% of the daily toll revenues.
The payment from JM to the Company was arranged as follows:
Payment for the Karawaci Interchange amounted to 17.5% of toll revenues for a period of
10 (ten) years since commencement date. This payment does not include interest; and
Payment for the Crossing Gate amounted to 23% of toll revenues for a period of 10 (ten) years
since commencement date and should there remain as unpaid obligation at the end of the ten
years, and JM shall pay the entire debt within 3 (three) months thereafter. This payment includes
interest at 2.5% above the average one-year time deposit rate of 5 (five) government banks.
Based on Deed of Amendment on Revenue Sharing Agreement No. 94 dated March 30, 2004 made
in presence of Agus Majid, S.H., a notary in Jakarta, the Company and JM amended the RevenueSharing Agreement for the construction and development of Karawaci Interchange and Crossing
Gate of Jakarta-Merak. The construction which was completed by the Company with total project
cost of Rp 19,426,689,000 will be refunded by JM based upon a profit sharing scheme of the daily
55

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
toll revenues from North and South Karawaci exit toll gates for a period of 10 (ten) years starting
from October 1, 2001, with proportion as follows:
82.5% for JM including operational and maintenance expenses of 18%; and
17.5% for the Company.

On September 17, 1993, ex Aryaduta entered into an agreement with the Regional Government of
Riau (Riau Government) in connection with the operation of Aryaduta Hotel Pekanbaru (AHP).
According to the agreement, the Company agreed to plan, develop and operate AHP whilst the Riau
Government agreed to provide Right to Use No. 466 with land area of 21,360 sqm at Jl. Diponegoro,
Simpang Empat, Pekanbaru. The Government receives a royalty fee and a share in the hotels
profits as compensation. This agreement is valid for 25 years commencing from the date of the
grand opening of the hotel and can be extended for another 10 years. In an amendment to the
agreement with the Regional Government dated July 7, 1997, the Regional Government of Riau
granted a land right in the name of ex Aryaduta which will be returned to Regional Government of
Riau at the end of the agreement. The grand opening was conducted at January 1, 2001.
Royalty fee expenses charged to operations for the periods ended March 31, 2011 and 2010
amounted to Rp 55,555,500, respectively.

On August 20, 2004, the Company entered into agreement with PT Untaian Rejeki Abadi (URA)
whereby the Company will provide technical and marketing services to URAs business property with
area of 10,568 sqm for a period up to May 27, 2034, which can be extended. URA shall pay a
certain amount as specified in the agreement.

On April 9, 2006, PT Consulting & Management Service Division (CMSD), a subsidiary, entered into
shopping centers management agreement with their main shareholders to manage, to sell and
maintain the shopping centers facilities. CMSD shall receive certain management service fee as
stipulated in the agreement. Total management fee earned for the periods ended March 31, 2011
and 2010 amounted to Rp 10.1 billion and Rp 5.2 billion, respectively.

Lippo-Mapletree Indonesia Retail Trust Management Ltd (LMIR TM), a subsidiary, entered into an
agreement with HSBC Institutional Trust Services (Singapore) Limited, as trustee of Lippo-Mapletree
Indonesia Retail Trust (LMIR Trust) effectively since listing date of LMIR Trust (November 14, 2007).
Based on the agreement, LMIR TM will provide management services to LMIR Trust, among others,
investment strategic and investment as well as divestment recommendation. For such services,
LMIR TM shall receive certain compensation as stated in the agreement.

On September 19, 2008, the Company and Carbon Worldwide Sdn. Bhd. (CW) entered into
agreement to organize A1 Grand Prix at Lippo Karawaci, Tangerang for the period of 2009 up to
2013. The Company shall pay USD 1,000,000 per annum and share to CW part of ticketing and
others revenue in certain proportion as stated in the agreement. The agreement has been
terminated earlier on July 17, 2009 and no outstanding commitment or obligation existed as of
March 31, 2011.

As of March 31, 2011, the Company and PT Lippo Cikarang Tbk, a subsidiary, have unused fixed
loan on demand facilities obtained from PT Bank ICBC Indonesia totaling to Rp 180,000,000,000.

56

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)

As of March 31, 2011, PT Lippo Cikarang Tbk, a subsidiary, has unused working capital and term
loan facilities obtained from PT Bank Negara Indonesia Tbk (Persero) totaling to Rp 50,000,000,000
and Rp 432,782,000,000, respectively.

The Company and subsidiaries entered into several agreements with contractors for development of
their projects. As of March 31, 2011 and December 31, 2010 total outstanding commitment
amounted to Rp 843 billion and Rp 803 billion, respectively. Several of significant contracts that are
unrealized on March 31, 2011 are as follows:
Subsidiaries

Contractor

Contract
Value
(Rp billion)

PT Lippo Cikarang Tbk


PT Mandiri Cipta Gemilang
PT Lippo Cikarang Tbk
PT Almaron Perkasa
PT Almaron Perkasa
PT Mandiri Cipta Gemilang
PT Lippo Karawaci Tbk
PT Mandiri Cipta Gemilang
PT Pamor Paramita Utama
PT Mandiri Cipta Gemilang
PT Mandiri Cipta Gemilang
PT Mandiri Cipta Gemilang
PT Almaron Perkasa
PT Almaron Perkasa
PT Mandiri Cipta Gemilang
PT Mandiri Cipta Gemilang
PT Mandiri Cipta Gemilang

b.

PT Trilogi Suryawisesa
PT Pembangunan Perumahan
PT Lampiri
PT Pembangunan Perumahan
PT Surya Marga Luhur
PT Glenindo Citramandiri
PT Surya Bangun Persada Indah
PT Inter World Steel Mills Indonesia
PT Jakarta Cakratunggal Steel mills
PT Cahaya Teknindo Majumandiri
PT Surya Marga Luhur
PT Superhelindo Jaya
PT Pelitamaju Multiswakarsa
PT Pangkal Multikarya
PT Adhimix Precast Indonesia
PT Indonesia Pondasi Raya
PT Pangkal Multikarya

278
118
88
65
63
54
45
42
40
39
32
25
32
32
25
22
22

Unrealized
of Contract
Value
(Rp billion)
166
30
87
16
15
32
10
2
24
33
27
25
18
4
6
9
20

Rental Agreements

Based on Deed of Lease Agreement No. 06 dated November 12, 2008 made in presence of Julijanti
Sundjaja, S.H., a notary in Tangerang, PT Mandiri Cipta Gemilang (MCG), subsidiary, entered lease
agreement with PT Matahari Putra Prima Tbk (MPPA) for a period of 20 years started from opening
date of St. Moritz with total rental income amounted to Rp 324,259,600,000.

Based on lease agreement No. 001/LA-LK/PTLK-PTKG/BD-106/II-05 dated March 4, 2005 which


was amended on October 21, 2005, the Company leases a plot of land with area of 3,848.57 sqm to
PT Shell Indonesia (SI) (formerly PT Kridapetra Graha). The lease period is for 10 years
commenced from the lease agreement date. Total value of lease was amounted to
Rp 16,560,000,000.

Based on Deed of Sale and Purchase Agreements Nos. 233, 234, 235, 236, 237, 238, 239, 240,
241, 242, 243, 244, 245, 246, 247, 248, 249, 250, 251, 252, 253 and 254 dated December 11, 2006,
all made in presence of Unita Christina, S.H., a notary in Tangerang, Deed of Sale and Purchase
Agreements Nos. 135, 136, 137, 138, 139, 140, 141, 142 and 143 dated December 11, 2006, all
made in presence of Rusdi Muljono,S.H., a notary in Surabaya; and Deed of Sale and Purchase

57

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Agreement No. 41 dated December 11, 2006, made in presence of Wenda Taurusita Amidjaja, S.H.,
a notary in Jakarta, the Company and PT Prudential Hotel Development, a subsidiary, transferred
land and building of their 3 hospitals and 1 hotel to PT Karya Sentra Sejahtera (KSS), PT Graha
Indah Pratama (GIP), PT Tata Prima Indah (TPI) and PT Sentra Dinamika Perkasa (SDP) which
owned 100% directly by Lovage International Pte. Ltd, Henley Investments Pte. Ltd, Primerich
Investment Pte. Ltd and Got Pte. Ltd, whereas those Companies were owned by First Real Estate
Investment Trust (First REIT). Based on rental agreement of Allen & Gledhill Advocates & Solicitors
dated October 23, 2006, the Company entered into rental and management agreement of certain
assets which have been transferred aforesaid, with KSS, GIP, TPI and SDP for 15 years. According
to the agreement, the Company shall pay certain amount as stipulated in the agreement.
Sale and lease-back transaction above meets the classification of operating lease. Since the
transaction price is above its fair value, then the difference is recognized as deferred gain (see Note
20).
Rental expense for the periods ended March 31, 2011 and 2010 amounted to Rp 38,615,687,995
and Rp 38,167,585,049, respectively.

On December 31, 2010, based on Deed of Sale and Purchase Agreement No 146/2010, PT East
Jakarta Medika (EJM), subsidiary, sold land and building of Siloam Cikarang Hospital (the Property)
to PT Graha Pilar Sejahtera (GPS), a wholly owned subsidiary of First Real Estate Investment Trust
(First REIT), at the selling price of SGD 33,333,333 and leasedback the Property.
Based on rental agreement of Allen & Gledhill Advocates & Solicitors dated November 8, 2010, the
Company entered into lease agreement with GPS for 15 years. The Company shall pay certain
amount as stipulated in the agreement.
Sale and lease-back transaction above meets the classification of operating lease. Since the
transaction price is above its fair value, then the difference is recognized as deferred gain (see Note
20).
Rental expense for the period ended March 31, 2011 amounted to Rp 6,217,200,000.

c.

Based on rental agreement of Allen & Gledhill Advocates & Solicitors dated November 8, 2010, the
Company entered into lease agreement with PT Primatama Cemerlang (PC), the owner of land and
building of Mochtar Riady Comprehensive Cancer Centre for 15 years. PC is wholly owned by First
REIT. The Company shall pay certain amount as stipulated in the agreement.

Hedging Facility Agreements

On March 24, 2006, the Company entered into Non Deliverable USD Call Spread Option facility with
BNP Paribas, Singapore branch amounted to USD 25,000,000 for spread between Rp 9,200 to
Rp 12,000 with annual Premium Rate of 2.525% from Notional Amount. Premium will be paid on
every March 9 and September 9. This facility will due on March 9, 2011. On June 7, 2010, the
Company has unwind this facility and realized gain amounted to USD 460,000.

58

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)

On March 28, 2006, the Company entered into Non Deliverable USD Call Spread Option facility with
UBS AG, Singapore branch amounted to USD 25,000,000 for spread between Rp 9,015 to
Rp 12,000 with annual Premium Rate of 2.72% from Notional Amount. Premium will be paid on
every March 9 and September 9. This facility will due on March 9, 2011. On August 31, 2010, the
Company has unwind this facility and realized gain amounted to USD 450,000.

On April 4, 2006, the Company entered into Non Deliverable USD Call Spread Option facility with
Deutsche Bank AG, Jakarta branch amounted to USD 25,000,000 for spread between Rp 9,000 to
Rp 12,000 with annual Premium Rate of 2.69% from Notional Amount. Premium will be paid on
every March 9 and September 9. This facility will due on March 9, 2011. On July 5, 2010, the
Company has unwind this facility and realized gain amounted to USD 305,000.

On April 5, 2006, the Company entered into Non Deliverable USD Call Spread Option facility with
Merrill Lynch & Co, Singapore branch amounted to USD 50,000,000 for spread between Rp 9,200 to
Rp 12,000 with annual Premium Rate of 2.475% from Notional Amount. Premium will be paid on
every March 9 and September 9. This facility will due on March 9, 2011. On September 7, 2010, the
Company has unwind this facility and realized gain amounted to USD 50,000.

On May 17, 2006, the Company entered into Non Deliverable USD Call Spread Option facility with
UBS AG, Singapore branch amounted to USD 25,000,000 for spread between Rp 9,200 to
Rp 12,000 with annual Premium Rate of 2.59% from Notional Amount. Premium will be paid on
every March 9 and September 9. This facility will due on March 9, 2011. On August 31, 2010, the
Company has unwind this facility and realized gain amounted to USD 210,000.

On November 8, 2006, the Company entered into Non Deliverable USD Call Spread Option facility
with BNP Paribas, Singapore branch amounted to USD 15,000,000 for spread between Rp 9,200;
Rp 9,200 and Rp 12,000 with annual Premium Rate of 1.525% from Notional Amount. Premium will
be paid on every March 9 and September 9. This facility will due on March 9, 2011. On June 7,
2010, the Company has unwind this facility and no gain or loss realized.

On May 31, 2010, the Company entered into Non Deliverable USD Call Spread Option facilities with
J.P. Morgan (S.E.A.) Limited, Singapore branch amounted to USD 60,000,000, with spread between
Rp 8,500; Rp 9,000 and Rp 12,000 with annual Premium Rates of 1.433% from Notional Amount.
Premium will be paid on every April 30 and October 31. This facility will due on April 30, 2015. As of
March 31, 2011, the fair value of this facility is amounting to USD 808,514.06 (equivalent to
Rp 7,041,348,914).

On June 7, 2010, the Company entered into Non Deliverable USD Call Spread Option facility with
BNP Paribas, Singapore branch amounted to USD 60,000,000 for spread between Rp 8,250;
Rp 9,000 and Rp 12,000 with annual Premium Rate of 1.5% from Notional Amount. Premium will be
paid on every April 30 and October 31. This facility will due on April 30, 2015. As of March 31, 2011,
the fair value of this facility is amounting to USD 987,538.00 (equivalent to Rp 8,600,468,442).

59

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)

On July 5 and September 2, 2010, the Company entered into Non Deliverable USD Call Spread
Option facilities with Morgan Stanley & Co amounted to USD 50,000,000 with spread between
Rp 8,500; Rp 9,000 and Rp 12,000 and USD 25,600,000 with spread between Rp 8,000; Rp 9,000
and Rp 11,500 with annual Premium Rates of 1.78% and 2%, respectively, from Notional Amount.
Premium will be paid on every April 30 and October 31. Those facilities will due on April 30, 2015. As
of March 31, 2011, the fair value of these facilities is amounting to USD 103,493.60 (equivalent to
Rp 901,325,762) and USD -252,029.73 (equivalent to Rp -2,194,926,919), respectively.

On August 31, 2010, the Company entered into Non Deliverable USD Call Spread Option facilities
with J.P. Morgan (S.E.A.) Limited, Singapore branch amounted to USD 50,000,000, with spread
between Rp 8,000; Rp 9,000 and Rp 11,500 with annual Premium Rates of 1.78% from Notional
Amount. Premium will be paid on every April 30 and October 31. This facility will due on April 30,
2015. As of March 31, 2011, the fair value of this facility is amounting to USD 77,298.95 (equivalent
to Rp 673,196,572).

On September 7, 2010, the Company entered into Non Deliverable USD Call Spread Option facility
with BNP Paribas, Singapore branch amounted to USD 25,000,000 for spread between Rp 8,000;
Rp 9,000 and Rp 11,500 with annual Premium Rate of 1.95% from Notional Amount. Premium will
be paid on every April 30 and October 31. This facility will due on April 30, 2015. As of March 31,
2011, the fair value of this facility is amounting to USD -238,414.00 (equivalent to
Rp -2,076,347,526).

60

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
34. Segment Information
Urban
Development
Rp

March 31, 2011 (In Thousand Rupiah)


Retail
Healthcare
Hospitality
Malls
and
Infrastructure
Rp
Rp
Rp

Large Scale
Integrated
Development
Rp

Property and
Portfolio
Management
Rp

Consolidated

Rp

Revenues
External

273,589,289

137,881,485

31,810,801

287,509,391

109,077,407

41,904,976

881,773,349

Gross Profit

112,677,507

70,840,615

23,803,969

76,927,034

67,438,304

26,561,603

378,249,032

Operating Expenses
Interest Income (Expenses) - Net
Other Income (Expenses) - Net
Income (Loss) of Associates

(75,748,073)
16,597,050
10,452,184
(1,933,477)

(12,140,911)
(2,410,617)
(6,553,889)
--

(11,905,365)
13,829
3,836,802
--

(42,567,518)
(2,080,147)
(4,073,333)
--

(31,949,077)
(345,329)
(1,080,435)
2,383,779

(15,123,208)
17,847
758,705
--

(189,434,152)
11,792,633
3,340,034
450,302

Income before Tax Benefit (Expense)

62,045,191

49,735,198

15,749,235

28,206,036

36,447,242

12,214,947

204,397,849

Income Tax Benefit (Expense)


Current Tax
Deferred Tax
Profit for The Period

(17,037,336)
(5,653,204)
39,354,651

(7,196,531)
-42,538,667

(2,293,968)
-13,455,267

(7,905,012)
237,519
20,538,543

(20,705)
(1,556,816)
34,869,721

(1,856,115)
-10,358,832

(36,309,667)
(6,972,501)
161,115,681

Profit Attributable to:


Owners of Parent Company
Non-controlling Interest

20,443,074
18,911,577

41,435,395
1,103,272

13,148,396
306,871

20,538,543
--

34,869,721
--

5,666,701
4,692,131

136,101,830
25,013,851

Net Income

39,354,651

42,538,667

13,455,267

20,538,543

34,869,721

10,358,832

161,115,681

9,990,653,374
62,585,094

2,553,787,757
--

1,974,131,562
--

1,192,566,834
7,394,145

601,461,131
2,980

241,248,741 16,553,849,399
-69,982,219

10,053,238,468

2,553,787,757

1,974,131,562

1,199,960,979

601,464,111

241,248,741 16,623,831,618

5,297,819,744

1,933,470,329

255,308,408

476,280,144

105,156,979

45,284,105

8,113,319,708

29,894,660
5,591,890

6,039,351
1,334,813

1,210,593
2,950,823

83,086,588
10,428,974

820,089
12,587,905

-293,620

121,051,281
33,188,025

9,682,342

620

64,232

179,142

--

--

9,926,336

440,495,225
(373,710,011)
(120,264,754)

146,742,865
(232,679,420)
(7,303,370)

53,227,644
20,674,521
(2,919,080)

268,611,634
(249,974,848)
(54,909,693)

105,636,221
(82,207,110)
(4,346,719)

37,874,212
(37,915,165)
(6,973,007)

1,052,587,801
(955,812,033)
(196,716,623)

(53,479,540)

(93,239,925)

70,983,085

(36,272,907)

19,082,392

(7,013,960)

(99,940,855)

Cash Flows from Investing


Receipt from Investment and
Promissory Note
(237,844,025)
Acquisition of Property and Equipment (29,894,660)
Others
(19,939,551)

-(6,039,351)
--

-(1,210,593)
--

-(83,086,588)
(33,025)

-(820,089)
--

758,978
---

(237,085,047)
(121,051,281)
(19,972,576)

(287,678,236)

(6,039,351)

(1,210,593)

(83,119,613)

(820,089)

758,978

(378,108,904)

568,970,232

--

--

--

--

--

568,970,232

(454,622,202)
(294,109,344)

-110,429,842

-(65,200,119)

-263,641,946

-(19,206,378)

-9,485,387

(454,622,202)
5,041,334

(179,761,314)

110,429,842

(65,200,119)

263,641,946

(19,206,378)

9,485,387

119,389,364

Segment Assets
Investment in Associates
Total Assets
Segment Liabilities
Capital Expenditures
Depreciation
Non Cash Expenses Other than
Depreciation
Cash Flows from Operating
Receipt from Costumers
Payment to Third Parties
Others

Cash Flows from Financing


Proceed from Loans
Repayment of Loans and
Promissory Notes
Others

61

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)

Urban
Development
Rp

March 31, 2010 (In Thousand Rupiah)


Retail
Healthcare
Hospitality
Malls
and
Infrastructure
Rp
Rp
Rp

Large Scale
Integrated
Development
Rp

Property and
Portfolio
Management
Rp

Consolidated

Rp

Revenues
External

217,057,840

95,199,601

18,533,727

246,604,288

104,890,273

23,094,257

705,379,986

Gross Profit

127,486,671

43,133,573

11,666,522

63,534,899

56,932,574

20,101,412

322,855,651

Operating Expenses
Interest Income (Expenses) - Net
Other Income (Expenses) - Net
Income (Loss) of Associates

(77,439,545)
(10,731,925)
4,895,970
(787,850)

(7,369,165)
17,076
427,936
--

(9,760,885)
36,829
1,953,922
--

(28,728,477)
(1,717,708)
(3,555,507)
--

(34,341,149)
(416,443)
(11,760)
2,011,597

(13,372,325)
15,610
1,841,437
--

(171,011,546)
(12,796,561)
5,551,998
1,223,747

43,423,321

36,209,420

3,896,388

29,533,207

24,174,819

8,586,134

145,823,289

Income Tax Benefit (Expense)


Current Tax
Deferred Tax
Profit for The Period

(11,423,028)
7,381,982
39,382,275

(4,925,970)
-31,283,450

(1,593,676)
-2,302,712

--29,533,207

(1,479,930)
(90,033)
22,604,856

(1,572,144)
-7,013,990

(20,994,748)
7,291,949
132,120,490

Profit Attributable to:


Owners of Parent Company
Non-controlling Interest

26,668,318
12,713,957

28,830,709
2,452,741

1,831,429
471,283

29,533,207
--

22,604,856
--

3,711,194
3,302,796

113,179,713
18,940,777

Net Income

39,382,275

31,283,450

2,302,712

29,533,207

22,604,856

7,013,990

132,120,490

Segment Assets
Investment in Associates

6,965,231,097
67,150,406

1,767,797,149
--

2,161,954,083
--

438,247,893
2,609,826

627,494,859
2,980

126,324,221 12,087,049,302
-69,763,212

Total Assets

7,032,381,503

1,767,797,149

2,161,954,083

440,857,719

627,497,839

126,324,221 12,156,812,514

Segment Liabilities

4,282,581,394

1,862,121,708

324,613,506

140,026,441

106,484,088

15,712,093

6,731,539,230

7,167,713
5,071,228

16,751,448
1,036,380

730,268
2,919,424

10,242,706
8,794,127

2,147,365
13,227,741

-135,948

37,039,500
31,184,848

7,446,256

1,931,150

258,674

533,462

--

--

10,169,542

283,388,769
(99,384,422)
(229,534,252)

57,454,927
(35,248,316)
(2,710,693)

12,265,654
(5,227,906)
(2,938,322)

236,190,088
(176,985,637)
(35,004,545)

68,842,918
(56,632,775)
(5,754,437)

17,568,683
(9,280,502)
(9,739,377)

675,711,039
(382,759,558)
(285,681,626)

(45,529,905)

19,495,918

4,099,426

24,199,906

6,455,706

(1,451,196)

7,269,855

15,978,933
(7,167,713)
(8,895,229)

-(16,751,448)
--

-(730,268)
--

-(10,242,706)
24,500

-(2,147,365)
--

1,841,721
---

17,820,654
(37,039,500)
(8,870,729)

(84,009)

(16,751,448)

(730,268)

(10,218,206)

(2,147,365)

1,841,721

(28,089,575)

(37,224,103)
11,696,084

---

(7,532,167)
--

(752,671)
(7,928,267)

---

---

(45,508,941)
3,767,817

(25,528,019)

--

(7,532,167)

(8,680,938)

--

--

(41,741,124)

Income before Tax Benefit (Expense)

Capital Expenditures
Depreciation
Non Cash Expenses Other than
Depreciation
Cash Flows from Operating
Receipt from Costumers
Payment to Third Parties
Others

Cash Flows from Investing


Receipt from Investment and
Promissory Note
Acquisition of Property and Equipment
Others

Cash Flows from Financing


Repayment of Loans and
Promissory Notes
Others

62

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
35. Asset and Liabilities Denominated in Foreign Currencies
March 31, 2011
Foreign Currencies
USD

JPY

SGD

Equivalent
EUR

AUD

Rupiah

Assets
Cash and Cash Equivalent

120,774,347

113,800

30,915,728

21,285

6,369

1,265,659,260,727

112,781,804

778,871,139,667

Trade Accounts Receivable

1,723,251

1,847,708

27,768,061,368

Other Accounts Receivable

6,466,922

4,398,107

86,693,746,075

Other Assets

49,950

3,955,649

27,752,726,240

Total Assets

129,014,471

113,800

153,898,996

21,285

6,369

2,186,744,934,077

Investments

Liabilities
Loans

395,608,000

3,445,350,072,000

Trade Accounts Payable

1,007,837

3,486,803

32,857,115,399

Other Accounts Payable

54,000

470,286,000

Accrued Expenses
Total Liabilities
Total Asset (Liabilities) - Net

16,733,653

780,927

151,126,464,199

413,403,491

--

4,267,730

--

3,629,803,937,598

(284,389,020)

113,800

149,631,266

21,285

6,369

(1,443,059,003,521)

December 31, 2010


Foreign Currencies
USD

JPY

SGD

Equivalent
EUR

AUD

Rupiah

Assets
Cash and Cash Equivalent

83,014,645

113,800

41,688,435

11,324

6,419

1,037,618,267,593

--

--

58,200,013

--

--

406,294,289,217

Trade Accounts Receivable

1,828,147

--

2,578,342

--

--

34,436,275,179

Other Accounts Receivable

6,405,706

--

2,814,438

--

--

77,241,294,324

Other Assets

49,950

--

2,142,900

--

--

15,408,685,350

Total Assets

91,298,448

113,800

107,424,128

11,324

6,419

1,570,998,811,663

Investments

Liabilities
Loans

336,854,000

--

--

--

--

3,028,654,314,000

Trade Accounts Payable

1,251,512

--

3,516,366

--

--

35,800,095,438

Other Accounts Payable

54,000

--

--

--

--

485,514,000

Accrued Expenses
Total Liabilities
Total Asset (Liabilities) - Net

7,171,629

--

1,330,808

--

--

73,770,486,987

345,331,141

--

4,847,174

--

--

3,138,710,410,425

(254,032,693)

113,800

102,576,954

11,324

6,419

(1,567,711,598,762)

In relation to the balance of liabilities denominated in foreign currencies, the Company has conducted several
derivative contracts with other parties to manage the risk of foreign currency exchange rates (see Note 33.c).
36. Contingencies
Based on the Legal Case Register No. 79/PDTG/2005/PN.TNG dated April 12, 2005, Silvia Sunardi sued
the Company (ex Lippo Land). Based on the case, it was stated that compensation was demanded due to the
allegation that kiosks at Depok Town Square was sold to the above mentioned party at the point where the land
status was still under dispute (court case). In 2005, the Legal Case Register was rejected by Tangerang District
Courts. Upon the judgments to the case aforesaid, the plaintiff is pursuing remedy either by cassation through
Supreme Court of the Republic Indonesia or by appeal through Banten High Court. According to the
Companys legal counsel, the event will not influence nor threat the ownership status of the land on which
Depok Town Square was built.
63

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
37. Financial Risks Management
The main financial risks faced by the Company and Subsidiaries are credit risk, foreign exchange rate risk,
interest rate risk, liquidity risk and price risk. Attention of managing these risks has significantly increased in
light of the considerable change and volatility in Indonesian and international markets.
(i)

Credit Risk
Credit risk is the risk that the Company and Subsidiaries will incur a loss arising from their customers,
clients or counterparties that fail to discharge their contractual obligations. The Company and
Subsidiaries financial instrument that potentially containing credit risk are cash and cash equivalent,
trade accounts receivable, other accounts receivable and investments. Maximum total credit risks
exposure are equal to the amount of the respective accounts.
The Company and Subsidiaries manage and control this credit risk by setting limits on the amount of risk
they are willing to accept for respective customers and more selective in choosing banks and financial
institutions, which only choose reputable and creditworthy banks and financial institutions.

(ii)

Foreign Exchange Rate Risk


Foreign exchange rate risk is the risk that the fair value of future cash flow of a financial instrument will
fluctuate because of changes in foreign exchange rates. The Company and subsidiaries financial
instrument that potentially containing foreign exchange rate risk are cash and cash equivalent,
investments and loans.
To manage foreign exchange rate risk, the Company has entered into several derivatives agreements
with certain third parties.

(iii) Interest Rate Risk


Interest rate risk is the risk that fair value of future cash flow of a financial instrument will fluctuate
because of changes in market interest rate. The Company and Subsidiaries possess to interest rate risk
because primarily they have loans with floating interest rate.
The Company and Subsidiaries manage this interest rate risk through an appropriate combination of
loans in fixed and floating interest rate and monitoring interest rate movement effect to minimize negative
effect to the Company. As of March 31, 2011, more than 95% of the Companys loans are fixed-rated.
(iv) Liquidity Risk
Liquidity risk is a risk when the cash flow position of the Company indicated that the short-tem revenue is
not enough to cover the short-term expenditure.
The Company and Subsidiaries manage this liquidity risk by maintain an adequate level of cash and
cash equivalent to cover Companys commitment in normal operation and also regularly evaluate the
projected and actual cash flow, as well as maturity date schedule of their financial assets and liabilities.
(v)

Price Risk
Price risk is a risk that fluctuate value of financial instrument as a result of changes in market price. The
Company and Subsidiaries possess to price risk because primarily they own an investment classified in
to available-for-sale financial assets.
The Company and Subsidiaries manage this price risk by regularly evaluate financial performance and
market price of their investment and continuously monitor global market developments.

64

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
15. Loans
March 31, 2011
Rp
Third Parties
Banks
a. Bank Pembangunan Daerah Kalimantan Timur
b. PT Bank Central Asia Tbk
c. PT Bank Agroniaga Tbk
d. PT Bank Negara Indonesia (Persero) Tbk

December 31, 2010


Rp

45,879,562,556
35,254,334,638
5,000,000,000
-86,133,897,194

--11,450,000,000
448,172,201,824
459,622,201,824

Non Bank
e. Bonds (2011: USD 395,608,000; 2010: USD 336,854,000)

3,395,318,195,819

2,916,240,540,290

Total Loans

3,481,452,093,013

3,375,862,742,114

a.

Bank Pembangunan Daerah Kalimantan Timur


Based on Credit Agreement No. 005/870/9200/Kl.59/BPKDP/2008 dated February 25, 2008,
PT Balikpapan Damai Husada (BDH), a subsidiary, obtained Investment Credit Facility (Non PRK) with
maximum amount of Rp 50,000,000,000, with annual interest rate of 11.5%. This loan was used as an
additional investment fund for hospital refurbishment and to settle loan obtained from
PT Bank Mandiri Tbk. This loan will mature on February 25, 2019.
This facility was secured by collaterals as follows:
1 (one) parcel of land with area of 12,562 sqm, including hospital building with area of 8,024 sqm
with Right to Build (SHGB) No. 2069 located at MT. Haryono street, RT 35, Gang Bahagia,
Balikpapan, registered under the name of PT Putra Adi Perkasa.
Office equipment, machinery and medical equipment amounted to Rp 8,665,020,000.
There is certain restrictive financial ratios which should be maintained by BDH.
The outstanding balance of this loan as of March 31, 2011 amounted to Rp 45,879,562,556.

b.

PT Bank Central Asia Tbk


Based on Credit Agreement No. 1 dated April 1, 2003 made in presence of Yandes Effriady, S.H., a
notary in Jambi and Letter of Credit Approval No. 0242/JAM/2010 dated February 3, 2010, which was
renewed by Amendment of Credit Agreement No. 54 dated July 19, 2010 made in presence of Hasan,
S.H., a notary in Jambi, PT Golden First Atlanta (GFA), a subsidiary, obtained a credit facility as follows:
Local Credit Facility (Current Account) with maximum amount of Rp 5,000,000,000.
Investment Credit Facility with maximum principle amount of Rp 32,419,314,946.
These loans bear an annual interest rate of 11.5% and will mature on February 5, 2012 and
December 20, 2016.
Both facilities are secured by collaterals as follows:
3 (three) parcel of land with area of 7,132 sqm, including its building consist of Right to Build (SHGB)
No. 840, No. 841 and No. 842/ Paal Merah, registered under the name of GFA.
Medical equipment, 3 vehicles, furniture and office equipment, trade account receivable, medicines
inventory and BHP.

40

These consolidated financial statements are originally issued in Indonesian language

PT LIPPO KARAWACI Tbk AND SUBSIDIARIES


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Period Ended March 31, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
38. The New Interpretation (ISAK), Revised and New of Statement of Financial
Accounting Standards (PSAK)
Indonesian Institute of Accountants has published some new and revised PSAK and ISAK, as follows:
For financial statements covering the periods beginning on or after January 1, 2012:
PSAK 10 (Revised 2010) The Effects of Changes in Foreign Exchange Rates
PSAK 18 (Revised 2010) Accounting and Reporting by Retirement Benefit Plan
PSAK 24 (Revised 2010) Employees Benefits
PSAK 34 (Revised 2010) Construction Contracts
PSAK 46 (Revised 2010) Income Taxes
PSAK 50 (Revised 2010) Financial Instruments: Presentation
PSAK 53 (Revised 2010) Share-based Payments
PSAK 60 Financial Instruments: Disclosures
PSAK 61 Accounting for Government Grants and Disclosure of Government Assistance
ISAK 13 Hedges of Net Investments in Foreign Operations
ISAK 15 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
ISAK 18 Government Assistance No Specific Relation to Operating Activiites
ISAK 20 Income Taxes Change in Tax Status of an Entity or its Shareholders
The Company does not implement earlier those PSAK and ISAK above and has not determined its impacts on
the consolidated financial statements.

65

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