PT LIPPO KARAWACI Tbk
AND SUBSIDIARIES
Consolidated Financial Statements
For the 9 (nine) Months Ended
September 30, 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 September 30, 2011 and December 31, 2010
(Expressed In Full Rupiah, Unless Otherwise Stated)
ASSETS
Cash and Cash Equivalent
Investments
Trade Accounts Receivable
Third Parties
(Net of allowance for doubtful accounts of
Rp 44,473,774,184 and Rp 44,734,119,179
as of September 30, 2011 and December 31, 2010,
respectively)
Related Parties
Other Accounts Receivable
(Net of allowance for doubtful accounts of
Rp 6,353,293,962 as of September 30, 2011 and
December 31, 2010, respectively)
Inventories
(Net of allowance for decline in inventories value of
Rp 39,505,683 as of September 30, 2011 and
December 31, 2010, respectively)
Prepaid Taxes and Expenses
Advances
Due from Related Parties
(Net of allowance for doubtful accounts of
Rp 12,004,700,338 and Rp 12,255,328,472
as of September 30, 2011 and December 31, 2010,
respectively)
Deferred Tax Assets - Net
Land for Development
Investment Properties
(Net of accumulated depreciation of
Rp 64,248,997,348 and 46,246,106,530
as of September 30, 2011 and
December 31, 2010, respectively)
Property and Equipment
(Net of accumulated depreciation of
Rp 943,657,303,226 and Rp 808,428,507,527
as of September 30, 2011 and
December 31, 2010, respectively)
Intangible Assets
(Net of accumulated amortization of
Rp 140,473,466,289 and Rp 134,504,453,123
as of September 30, 2011 and
December 31, 2010, respectively)
Other Assets
Notes
September 30, 2011
Rp
December 31, 2010
Rp
2,913,963,459,607
2,034,646,826,573
3,660,087,191,120
534,223,727,332
567,182,238,619
656,604,474,581
2,186,188,435
154,452,880,712
5,083,171,699
141,624,955,538
7,993,965,436,548
7,068,539,007,802
2.i, 2.l, 2.u
8
2.f, 2.x, 9, 37
388,094,317,145
655,849,432,732
8,952,482,995
255,637,355,778
699,295,415,957
9,373,247,862
2.u, 17.b
2.h, 2.m, 10
2.j, 2.l, 2.n, 11
70,082,434,233
970,342,634,081
502,913,258,414
72,636,806,041
953,759,187,924
517,985,863,654
2.k, 2.l, 2.n, 12
1,502,649,991,088
1,206,374,544,429
2.o, 13
382,689,135,392
104,623,556,841
2.c, 2.x, 14, 33.a, 35, 37
475,368,774,071
269,536,413,368
18,623,339,490,645
16,155,384,919,926
2.c, 2.d, 2.x, 3, 35, 37
2.c, 2.e, 2.x, 4, 9, 35, 37
2.c, 2.g, 2.x, 5, 35, 37
2.f, 9
2.c, 2.g, 2.s, 2.x, 6, 33.c
35, 37
2.h, 2.m, 7
TOTAL ASSETS
See the Accompanying Notes which are an integral part
of these Consolidated Financial Statements.
Final Draft - 11/4/2011 3:15:35 PM
1
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 September 30, 2011 and December 31, 2010
(Expressed In Full Rupiah, Unless Otherwise Stated)
LIABILITIES AND EQUITY
LIABILITIES
Loans
Third Parties
Trade Accounts Payable
Third Parties
Related Party
Other Accounts Payable
Accrued Expenses
Taxes Payable
Advance from Customers
Customer Deposit
Deferred Income
Obligations Under Finance Lease
Due to Related Parties
Deferred Gain on Sale and Leaseback Transactions
Estimated Liabilities on Employees’ Benefits
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 - 23,077,689,619 and
21,627,689,619 shares as of September 30, 2011
and December 31, 2010
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
Notes
September 30, 2011
Rp
December 31, 2010
Rp
3,726,462,387,258
3,375,862,742,114
243,971,597,381
8,224,775,691
87,402,704,518
265,820,833,435
9,710,280,000
194,951,414,425
581,301,159,041
189,128,508,739
2,240,359,297,684
32,883,585,344
893,806,343,719
7,639,664,612
644,441,557,991
117,089,448,839
8,772,711,030,817
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
2,307,768,961,900
4,045,608,998,297
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
136,481,454,726
2,763,005,572
25,583,562,051
3,281,827,017
4,000,000,000
2,776,128,547,083
9,292,286,314,843
558,342,144,985
9,850,628,459,828
4,000,000,000
2,250,001,459,123
7,709,908,346,666
469,508,974,272
8,179,417,320,938
18,623,339,490,645
16,155,384,919,926
2.c,2.m,2.p, 2.s, 2.x,
15, 35, 37
2.c, 2.x, 35, 37
2.f, 9
2.c, 2.x, 35, 37
2.c, 2.t, 2.x, 16, 33.c,
35, 37
2.u, 17.c
2.t, 2.x, 18, 37
2.x, 37
2.f, 2.t, 9, 19
2.l
2.f, 2.x, 9, 37
2.l, 20, 33.b
2.q, 21
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 - 11/4/2011 3:15:35 PM
2
paraf:
These consolidated financial statements are originally issued in Indonesian language
PT LIPPO KARAWACI Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the 9 (nine) Months Ended September 30, 2011 and 2010
(Expressed In Full Rupiah, Unless Otherwise Stated)
Notes
September 30, 2011
Rp
September 30, 2010
Rp
2.f, 2.t, 9, 27
2,907,182,360,910
2,228,517,881,291
2.t, 28
1,646,288,641,478
1,205,169,815,817
1,260,893,719,432
1,023,348,065,474
(166,764,309,851)
(470,827,729,888)
81,557,218,735
17,942,308,679
24,999,644
(7,720,147,656)
(33,928,652,044)
18,056,457,939
2,872,604,195
(125,178,756,799)
(444,424,134,167)
88,240,305,208
(32,430,070,507)
231,012,442
(3,066,538,692)
(34,925,161,837)
(748,958,167)
5,457,418,057
702,106,469,185
476,503,181,012
(129,734,934,076)
(2,554,371,808)
(132,289,305,884)
(88,802,303,534)
11,264,226,509
(77,538,077,025)
PROFIT FOR THE PERIOD
569,817,163,301
398,965,103,987
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
110,897,892,675
45,143,095,372
(518,821,445)
155,522,166,602
22,158,809,932
-2,697,098,992
24,855,908,924
Total Comprehensive Income For The Period
725,339,329,903
423,821,012,911
Profit Attributable to:
Owners of Parent Company
Non-controlling Interest
480,983,992,588
88,833,170,713
348,662,816,271
50,302,287,716
569,817,163,301
398,965,103,987
636,506,159,190
88,833,170,713
373,518,725,195
50,302,287,716
725,339,329,903
423,821,012,911
21.62
20.15
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 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 - 11/4/2011 3:15:35 PM
3
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 9 (nine) Months Ended September 30, 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
Additional Paid Difference in Value
Unrealized
Gain on
in Capital - Net from Restructuring
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
--
--
--
22,158,809,932
--
--
--
22,158,809,932
--
22,158,809,932
Difference from Foreign Currency Translations
2.c
--
--
--
--
2,697,098,992
--
--
2,697,098,992
--
2,697,098,992
Reserved Fund
26
--
--
--
--
--
1,000,000,000
(1,000,000,000)
--
--
--
--
--
--
--
--
--
348,662,816,271
348,662,816,271
50,302,287,716
398,965,103,987
BALANCE AS OF SEPTEMBER 30, 2010
1,730,215,169,500 1,304,222,206,548
19,535,347,265
80,756,070,644
(1,117,255,766)
4,000,000,000
2,123,148,686,269
5,260,760,224,460
451,992,383,369
5,712,752,607,829
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
--
--
--
110,897,892,675
--
--
--
110,897,892,675
--
110,897,892,675
23
--
(10,359,123,161)
--
--
--
--
--
(10,359,123,161)
--
(10,359,123,161)
145,000,000,000
811,230,932,148
--
--
--
--
--
956,230,932,148
--
956,230,932,148
--
--
--
--
--
--
45,143,095,372
45,143,095,372
--
45,143,095,372
--
--
--
--
(518,821,445)
--
--
(518,821,445)
--
(518,821,445)
--
--
--
--
--
--
480,983,992,588
480,983,992,588
88,833,170,713
569,817,163,301
2,307,768,961,900 4,045,608,998,297
19,535,347,265
136,481,454,726
2,763,005,572
4,000,000,000
2,776,128,547,083
9,292,286,314,843
558,342,144,985
9,850,628,459,828
Limited Public Offering III - Net
Non Preemptive Rights Issuance
22, 23
Adjustment on Adoption of PSAK No. 22
(revised 2010)
Difference from Foreign Currency Translations
2.c
Net Income
BALANCE AS OF SEPTEMBER 30, 2011
See the Accompanying Notes which are an integral part
of these Consolidated Financial Statements.
Final Draft - 11/4/2011 3:15:35 PM
4
Paraf:
These consolidated financial statements are originally issued in Indonesian language
PT LIPPO KARAWACI Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the 9 (nine) Months Ended September 30, 2011 and 2010
(Expressed In Full Rupiah, Unless Otherwise Stated)
September 30, 2011
September 30, 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 Used in Operating Activities
3,587,297,385,195
(3,109,963,086,412)
(289,208,170,713)
188,126,128,070
(130,270,976,071)
(368,266,841,065)
(310,411,689,066)
2,073,391,374,687
(2,248,838,831,275)
(262,310,473,179)
(437,757,929,767)
(334,608,331,211)
(264,180,140,923)
(1,036,546,401,901)
CASH FLOWS FROM INVESTING ACTIVITIES
Dividend Receipt
Redemption of Promissory Note
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
27,556,668,856
4,495,500,000
1,484,439,757
(56,436,845,938)
(260,428,253,428)
(1,397,967,124,362)
(1,681,295,615,115)
27,834,806,689
9,400,000,000
336,923,048
(19,627,144,204)
(138,062,938,606)
-(120,118,353,073)
CASH FLOWS FROM FINANCING ACTIVITIES
Non Preemptive Rights Issuance
Net Proceed from Bond Issuance
Cash Received from (Paid to) Related Parties
Repayment of Loans
Net Cash Flows Provided by Financing Activities
957,000,000,000
568,970,232,006
(1,996,410,866)
(254,622,201,824)
1,269,351,619,316
-721,760,391,601
1,338,782,928
(43,707,341,696)
679,391,832,833
NET DECREASE IN CASH AND CASH EQUIVALENT
(722,355,684,865)
(477,272,922,141)
(23,768,046,648)
(45,933,502,686)
BEGINNING BALANCE OF CASH AND CASH EQUIVALENT
3,660,087,191,120
1,533,259,921,843
ENDING BALANCE OF CASH AND CASH EQUIVALENT
2,913,963,459,607
1,010,053,497,016
Cash and Cash Equivalent at the End of the Period consist of:
Cash on Hand
Cash in Banks
Time Deposits
3,865,950,443
462,604,007,084
2,447,493,502,080
4,652,235,240
191,022,079,901
814,379,181,875
2,913,963,459,607
1,010,053,497,016
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 - 11/4/2011 3:15:35 PM
5
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
1.
General
1.a. The Company’s 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 Company’s article of
association have been amended several times, the latest by the Deed of Extraordinary General Meeting
of Shareholders Resolution No. 19 dated May 31, 2011, made in presence of Unita Christina Winata,
S.H., a notary in Tangerang, concerning the increase of the Company’s issued and fully paid capital, the
changes of the Company's scope of activities. The deed was received and recorded by the Minister of
Law and Human Rights of the Republic of Indonesia in his letter No. AHU-AH.01.10-16825 dated
June 1, 2011.
In accordance with article 3 of the Company’s articles of association, the Company’s 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 Company’s Public Stock Offering
The Company’s 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 Company’s 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.
6
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 of 9 (nine) Months Ended September 30, 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.
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.
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 June 6, 2011, 1,450,000,000 shares was issued.
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 Company’s 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 Menara Tirta Indah (formerly PT PluitParagon Mall)
Tangerang
PT BaliParagon Mall
Tangerang
PT Kuta BeachParagon and Subsidiaries
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
Development,
Trading and Services
7
Ownership
Percentage
Directly
Ownership
Percentage
Indirectly
Year of
Operation
Started
September 30, 2011
December 31, 2010
Rp
Rp
100.00%
--
2006
21,340,137,030
632,579,344,913
100.00%
-100.00%
-100.00%
--
----
3,591,008,970,827
3,785,349,279,797
98,886,188,585
2,476,049,606,236
2,480,608,298,041
79,187,319,423
--
100.00%
--
98,886,195,381
79,224,388,113
--
80.00%
2006
98,886,188,585
79,224,381,132
100.00%
--
--
321,298,211,614
124,035,378,178
--
100.00%
--
321,298,220,437
124,035,387,169
--
60.00%
2007
148,420,995,917
123,917,428,178
100.00%
----
-99.83%
90.00%
81.00%
-----
1,554,955,100,102
65,012,165,407
16,164,401,906
41,311,351,360
1,457,840,502,027
65,094,751,048
22,073,769,891
42,233,313,149
--
99.83%
--
586,015,942
587,202,942
--
99.83%
--
571,818,942
587,672,942
--
99.83%
--
586,003,941
587,677,941
--
99.83%
--
143,932,188,257
103,637,536,035
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Subsidiary
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
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
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Real Estate
Real Estate
Real Estate
--
99.83%
--
127,140,081,764
102,663,055,542
--
99.83%
--
127,101,501,264
102,624,475,042
--
80.02%
--
116,717,022,839
92,239,996,617
--
99.83%
--
501,711,012
587,677,941
--
99.83%
--
4,464,107,725
587,672,941
--
99.83%
--
--
587,677,941
--
99.83%
--
571,786,441
587,672,941
--
99.83%
--
4,217,038,541
1,207,258,295
--
99.83%
--
3,783,378,678
582,772,941
--
99.83%
--
5,000,924,000
5,001,945,000
--
99.83%
--
10,000,924,000
10,001,945,000
--
99.83%
--
10,002,571,000
10,001,945,000
--
99.83%
--
5,002,571,000
5,001,945,000
---
99.83%
99.83%
---
276,789,935,495
276,045,200,546
283,592,670,223
282,851,627,569
--
99.83%
--
154,332,040,438
169,332,075,861
--
99.83%
--
593,000,000
594,548,000
--
99.83%
--
600,000,000
600,000,000
---
99.83%
100.00%
2003
--
1,124,481,974,982
3,985,109,782
1,001,295,265,806
2,185,114,678
----
99.83%
99.83%
100.00%
----
575,123,250
577,623,000
600,000,000
577,444,250
578,147,000
--
--
100.00%
--
600,000,000
--
--
100.00%
--
600,000,000
--
--
100.00%
--
600,000,000
--
100.00%
---
-100.00%
100.00%
--1997
3,499,339,221,536
571,365,542
320,175,920,901
2,049,794,325,694
572,637,542
308,795,832,869
--
100.00%
2001
88,192,232,467
56,832,112,554
---
52.70%
42.16%
1997
2001
117,830,119,849
25,383,310
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
242,263,251,968
211,861,560,074
116,023,089,074
76,332,700,590
23,234,472,605
8,778,813,567
7,206,672,381
1,974,994,891
50,000,000
50,000,000
89,231,373,799
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
33,319,136,392
131,965,138,434
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%
1998
---1998
1994
----
9,896,155,741
18,713,152,546
20,286,497,984
15,741,216,158
714,765,952
401,005,019
475,549,000
2,546,771,804
73,527,198
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
Tangerang
Jakarta
PT Titian Semesta Raya (formerly PT PejatenParagon Mall)
Tangerang
PT Tatabangun Nusantara (formerly PT CibuburParagon Mall)
Tangerang
PT PalembangParagon Mall
Tangerang
PT Tirtasari Kencana (formerly 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 Simpruk Arteri Realti
Jakarta
Jakarta
Jakarta
PT Kharisma Ekacipta Persada
Tangerang
PT Cipta Mahakarya Gemilang
Tangerang
PT Mandiri Cipta Gemilang
PT Jaya Makmur Bersama
Jakarta
Jakarta
PT Grand Villa Persada
PT Mega Proyek Pertiwi
PT Sinar Surya Timur
Tangerang
Tangerang
Tangerang
PT Karyabersama Jaya
Tangerang
PT Bayutama Sukses
Tangerang
PT Manunggal Utama Makmur
Tangerang
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
Total Assets
September 30, 2011
December 31, 2010
Domicile
Jakarta
Jakarta
Tangerang
Tangerang
Tangerang
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 Sentragraha 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
Tangerang
Jakarta
Jakarta
Jakarta
Tangerang
Tangerang
Tangerang
Tangerang
Jakarta
Home
Improvement
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
8
Rp
Rp
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Subsidiary
PT Wahana Tatabangun Cemerlang Matahari
PT Wahana Tatabangun Cemerlang
PT Paragon City
PT Bangun Karya Semesta
Main Business
Activity
Ownership
Percentage
Directly
Ownership
Percentage
Indirectly
Year of
Operation
Started
Jakarta
Jakarta
Tangerang
Real Estate
Real Estate
Real Estate and
Trading
Development,
and Services
Trading, Development
and Services
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
Investment, Trading
and Services
Investment, Trading
and Services
Trading
Trading
Investment
----
100.00%
100.00%
100.00%
----
17,230,808
17,850,066
7,159,917,926
17,754,808
18,624,066
7,501,935,126
--
100.00%
--
2,500,000,000
--
--
100.00%
--
--
100.00%
2006
--
100.00%
--
Jakarta
PT Padang Indah City
Tangerang
Bridgewater International Ltd
Seychelles
PT Lippo Karawaci Infrastructure & Utilitas Division
Tangerang
Brightlink Capital Pte. Ltd.
Evodia Strategic Investment Ltd. and Subsidiaries
Great Capital Pte. Ltd. and Subsidiary
Key Capital Pte. Ltd.
Globalink Investments Pte. Ltd. and Subsidiary
Fortuna Capital Pte. Ltd.
Sagacity Investments Pte. Ltd. and Subsidiary
Maxi Magna Investments Pte. Ltd.
Total Assets
September 30, 2011
December 31, 2010
Domicile
Malaysia
Malaysia
Singapore
Singapore
Singapore
Singapore
Singapore
Singapore
Rp
Rp
2,000,000,000
--
2,652,456,772,078
1,214,423,387,202
--
232,735,000
233,199,000
100.00%
--
65,521,880,316
66,859,401,774
--
100.00%
--
81,562,344
150,429,533
--
100.00%
--
40,782,796
75,216,435
--
100.00%
--
20,394,796
37,611,708
--
100.00%
--
40,782,796
75,216,435
--
100.00%
--
20,394,796
37,611,708
--
100.00%
--
6,796
--
--
100.00%
--
6,796
--
----
100.00%
100.00%
100.00%
----
6,790,208,086
17,194
17,194
6,790,208,086
16,930
17,982
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%
--
8,597
8,991
Jakarta
Jakarta
Tangerang
Services
Trading
Development,
Trading and Services
Real Estate
Real Estate
Real Estate
Trading
Trading
100.00%
---
-100.00%
100.00%
----
3,637,759,923,574
111,840,000
1,304,999,840,864
3,635,476,380,002
113,758,250
1,222,664,290,150
------
92.00%
92.00%
92.00%
100.00%
100.00%
-2005
----
1,304,925,721,280
1,418,474,423,637
61,989,596,347
238,262,079,127
233,344,887,536
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
--
285,366,630
580,192,194
2,181,487,119
-72,770,775,347
72,752,263,043
133,915,626,920
220,932,516,023
114,663,632,384
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
84,282,010,329
1,354,005,582
77,347,987,358
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
--
156,703,239
6,919,809,937
113,727,148,103
131,498,876,702
24,116,420
2,456,306,504
358,769,391
79,301,979
240,455,179,684
240,455,179,684
-4,675,000
275,710,569,609
275,540,994,454
124,915,497,582
124,954,185,082
10,669,495,374
198,082,657
18,115,009,413
127,241,295,095
127,241,295,095
24,890,420
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
Services
Real Estate and
Urban Development
---
80.00%
80.00%
---
22,248,618,002
15,493,403,200
1,550,275,017
495,000,000
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 Corporation 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
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
Tangerang
Jakarta
Jakarta
Medan
9
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Total Assets
Subsidiary
PT Menara Perkasa Megah and Subsidiaries
PT Pelangi Cahaya Intan Makmur and Subsidiaries
PT Surya Mitra Jaya and Subsidiary
PT Citra Harapan Baru
Domicile
Jakarta
Sidoarjo
Sidoarjo
Surabaya
PT Niaga Utama
PT Mitra Kasih Karunia
PT Kreasi Megatama Gemilang and Subsidiary
Jakarta
Jakarta
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)
PT CB Commercial
Jakarta
British
Virgin
Island
Singapore
Jakarta
Malaysia
Tangerang
Tangerang
Tangerang
Main Business
Activity
Ownership
Percentage
Directly
Ownership
Percentage
Indirectly
Year of
Operation
Started
Real Estate and
Urban Development
Trading
Trading and Services
Accommodation Services
--
100.00%
2005
411,054,897,820
416,908,133,063
----
85.00%
85.01%
99.99%
-2005
--
413,775,594,873
413,874,844,373
2,000,000,000
419,628,357,708
419,931,340,307
2,000,000,000
Trading
Real Estate
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
----
100.00%
100.00%
100.00%
----
214,385,213
1,887,217,700
28,450,405,371
109,591,042
2,227,827,000
18,568,721,613
---
100.00%
99.83%
---
29,058,380,371
2,100,098,922
19,162,355,554
2,075,920,801
--
100.00%
--
65,469,347,752
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%
------------
480,656,900
11,398,100
17,317,400
589,158,900
480,573,100
133,915,626,920
131,961,320,489
131,461,320,489
130,961,320,489
523,145,791
578,400,000
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%
--
113,727,148,103
115,150,774,145
--
80.00%
--
49,514,401,078
51,092,390,908
--
80.00%
--
49,418,709,078
50,996,024,908
--
100.00%
--
263,798,505,666
265,474,762,293
--
100.00%
--
263,740,060,618
265,431,266,774
--
100.00%
--
264,120,988,242
265,801,582,898
--
99.60%
--
3,148,917,900
3,149,343,900
--
100.00%
--
262,652,667,720
264,305,151,736
---
100.00%
100.00%
-2008
263,152,667,720
263,328,020,915
264,805,151,736
264,892,379,903
--
100.00%
--
18,381,221
22,477,500
--
100.00%
2006
322,078,677,971
309,426,625,564
--
100.00%
2010
587,339,941
588,715,941
--
100.00%
--
586,119,097
586,879,045
Investment
Trading,
Development and
Real Estate
Investment, Trading
and Services
Trading,
Development,
Transportation and
Services
Development,
Trading and Services
Development,
Trading and Services
10
September 30, 2011
December 31, 2010
Rp
Rp
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Total Assets
Subsidiary
Domicile
Main Business
Activity
Ownership
Percentage
Directly
Ownership
Percentage
Indirectly
Year of
Operation
Started
PT Kemilau Karyacipta Persada
Tangerang
--
100.00%
--
2,466,377,000
2,467,151,000
PT Bumi Indah Pertiwi
Tangerang
Development,
Trading and Services
Development,
Trading and Services
Real Estate
Town
Management
and Real Estate
Town
Management
Real Estate
Public
Transportation
Recreation
Services
Property Management
Clean and Waste
Water Treatment
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
Development,
Trading and Services
Trading, Development,
Printing and Services
Development,
Trading and Services
Development,
Trading and Services
Development,
Trading and Services
Healthcare
Trading and Services
Development,
Transportation,
Trading and Services
Healthcare
Development,
Transportation,
Trading and Services
Development,
Transportation
Trading and Services
Development and
Services
Healthcare
--
100.00%
--
2,216,817,102
2,039,467,400
---
54.37%
54.37%
1989
1992
1,767,135,952,713
134,885,323,898
1,670,033,142,093
130,670,667,728
--
54.37%
2010
22,870,715,923
8,402,013,531
---
54.37%
54.37%
-1993
16,980,287,500
46,118,234
16,980,287,500
30,261,195
--
54.37%
1993
4,662,591,811
3,817,135,487
---
54.37%
54.37%
2011
2011
35,286,476,705
14,229,107,086
---
100.00%
--
--
1,128,996,699,779
778,429,334,016
----
100.00%
100.00%
100.00%
----
1,128,872,405,765
1,730,769,883
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
179,821,524,872
849,214,066
297,312,374,317
---
85.50%
100.00%
2002
--
179,821,524,872
106,318,150,259
297,068,375,317
--
---
83.00%
100.00%
2008
--
104,952,163,123
100,063,626,719
---
----
79.61%
100.00%
100.00%
2007
---
62,929,506,611
1,000,000,000
400,000,000
----
--
100.00%
--
600,000,000
--
--
100.00%
--
600,000,000
--
--
100.00%
--
2,400,000,000
--
--
100.00%
--
8,000,000,000
--
99.99%
---
0.01%
100.00%
100.00%
----
215,418,294,007
52,408,891,514
49,159,947,213
80,765,165,404
26,848,599,088
27,287,229,822
---
100.00%
100.00%
2005
--
3,177,713,079
26,575,568,279
3,823,569,397
26,653,057,078
--
100.00%
--
7,896,399,494
49,048,805,314
--
100.00%
--
76,144,474,428
40,925,150,010
0.01%
99.99%
--
19,805,000
20,898,000
PT Lippo Cikarang Tbk and Subsidiaries
PT Great Jakarta Inti Development
Bekasi
Bekasi
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
PT Megapratama Karya Persada and Subsidiaries
PT Siloam International Hospitals and Subsidiaries
PT Aritasindo Permaisemesta
PT Perdana Kencana Mandiri
PT Multiselaras Anugrah
Tangerang
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 Siloam Emergency Services
PT Utama Sentosa Abadi
Balikpapan
Tangerang
Jakarta
PT Karyatama Indah Sentosa
Tangerang
PT Perisai Dunia Sejahtera
Tangerang
PT Primakarya Dunia Sentosa
Tangerang
PT Siloam Sumsel Kemitraan
Tangerang
PT Eramulia Pratamajaya and Subsidiaries
PT Siloam Karya Sejahtera
PT Siloam Dinamika Perkasa
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
PT Abadi Jaya Sakti and Subsidiaries
Rp
December 31, 2010
Rp
Jakarta
Healthcare
--
100.00%
--
--
19,793,000
Tangerang
Investment, Trading
and Services
General
Restaurant, Bar,
Catering, Etc
Management
Services
Services
Services
Services
Services
100.00%
--
--
579,931,300
579,931,300
0.01%
--
99.99%
100.00%
1998*
1989
2,169,920
1,189,747,134
2,578,920
859,400,618
--
100.00%
1998
13,511,785,518
10,977,241,804
-----
100.00%
100.00%
100.00%
100.00%
-----
590,134,633
590,078,000
590,192,062
594,709,000
590,648,178
590,851,000
590,971,062
595,248,449
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
September 30, 2011
Surabaya
Medan
Tangerang
Makassar
11
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Total Assets
Subsidiary
PT Aryaduta Residences
PT Aryaduta Hotels & Resort
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
September 30, 2011
Jakarta
Jakarta
Tangerang
Jakarta
--100.00%
--
100.00%
100.00%
-100.00%
-----
2,119,843,554
583,690,500
501,613,096,546
100,006,000
1,771,451,047
584,463,500
678,437,900
100,006,000
Jakarta
Services
Services
Real Estate
Trading, Real Estate,
and Development
General Trading
--
99.99%
--
487,645,430
204,379,650
Jakarta
General Trading
--
99.99%
--
5,255,675,438
2,204,855,750
Jakarta
General Trading
--
99.99%
--
7,203,636,344
3,022,718,666
Jakarta
General Trading
--
99.99%
--
6,979,530,648
2,923,731,973
Jakarta
General Trading
--
99.99%
--
5,253,533,385
2,206,741,750
Jakarta
Jakarta
Makassar
General Trading
General Trading
General Trading
----
100.00%
89.74%
88.66%
----
55,883,636,496
57,675,487,996
55,710,647,218
47,179,654,493
48,968,945,993
46,963,247,615
Makassar
Real Estate
and Property
4.92%
45.33%
1997
428,792,227,543
358,990,245,776
Rp
December 31, 2010
Rp
* Inactive
** 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.
PT Bangun Karya Semesta was established under Deed of Establishment No. 1 dated March 3, 2011,
made in presence of Imam Wahyudi, S.H., a notary in Tangerang. The establishment deed was approved
by the Minister of Law and Human Rights of the Republic of Indonesia, in his Decree
No. AHU-22454.AH.01.01.Tahun 2011 dated May 4, 2011.
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.
PT Siloam Emergency Services was established under Deed of Establishment No. 18 dated March 25,
2011, made in presence of Unita Christina Winata, S.H., a notary in Tangerang. The establishment deed
was approved by the Minister of Law and Human Rights of the Republic of Indonesia, in his Decree
No. AHU-19053.AH.01.01.Tahun 2011 dated April 15, 2011.
On March 31, 2011, all ownership in PT PalembangParagon Mall and PT Sentra Star Dinamika, both
subsidiaries, was sold.
PT Karyatama Indah Sentosa was established under Deed of Establishment No. 2 dated April 1, 2011,
made in presence of Sriwi Bawana Nawaksari, S.H., MKn, a notary in Tangerang. The establishment
deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia, in his Decree
No. AHU-23018.AH.01.01.Tahun 2011 dated May 6, 2011.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
PT Sinar Surya Timur was established under Deed of Establishment No. 10 dated April 22, 2011, made in
presence of Linda Hapsari Yuwono, S.H., a notary in Tangerang. The establishment deed was approved
by the Minister of Law and Human Rights of the Republic of Indonesia, in his Decree
No. AHU-33972.AH.01.01.Tahun 2011 dated July 7, 2011.
PT Padang Indah City was established under Deed of Establishment No. 3 dated June 10, 2011, made in
presence of Sriwi Bawana Nawaksari, S.H., MKn, a notary in Tangerang. The establishment deed was
approved by the Minister of Law and Human Rights of the Republic of Indonesia, in his Decree
No. AHU-30298.AH.01.01.Tahun 2011 dated June 16, 2011.
On June 16, 2011, Peninsula Investments Ltd., a subsidiary, acquired 40% ownership of Lippo
Mappletree Indonesia RTM Ltd.
PT Perisai Dunia Sejahtera was established under Deed of Establishment No. 06 dated July 21, 2011,
made in presence of Sriwi Bawana Nawaksari, S.H., MKn, a notary in Tangerang. The establishment
deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia, in his Decree
No. AHU-38099.AH.01.01.Tahun 2011 dated July 28, 2011.
PT Primakarya Dunia Sentosa was established under Deed of Establishment No. 08 dated July 27, 2011,
made in presence of Sriwi Bawana Nawaksari, S.H., MKn, a notary in Tangerang. The establishment
deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia, in his Decree
No. AHU-38968.AH.01.01.Tahun 2011 dated August 02, 2011.
PT Karyabersama Jaya was established under Deed of Establishment No. 03 dated August 5, 2011,
made in presence of Sriwi Bawana Nawaksari, S.H., MKn, a notary in Tangerang. The establishment
deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia, in his Decree
No. AHU-40998.AH.01.01.Tahun 2011 dated August 12, 2011.
PT Bayutama Sukses was established under Deed of Establishment No. 04 dated August 5, 2011, made
in presence of Sriwi Bawana Nawaksari, S.H., MKn, a notary in Tangerang. The establishment deed was
approved by the Minister of Law and Human Rights of the Republic of Indonesia, in his Decree
No. AHU-40887.AH.01.01.Tahun 2011 dated August 12, 2011.
PT Manunggal Utama Makmur was established under Deed of Establishment No. 05 dated August 5,
2011, made in presence of Sriwi Bawana Nawaksari, S.H., MKn, a notary in Tangerang. The
establishment deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia,
in his Decree No. AHU-41064.AH.01.01.Tahun 2011 dated August 12, 2011.
PT Siloam Sumsel Kemitraan was established under Deed of Establishment No. 07 dated August 5,
2011, made in presence of Sriwi Bawana Nawaksari, S.H., MKn, a notary in Tangerang. The
establishment deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia,
in his Decree No. AHU-41373.AH.01.01.Tahun 2011 dated August 15, 2011.
On September 12, 2011, PT Siloam Emergency Services and PT Siloam International Hospitals, both
subsidiaries, acquired 99.75% and 0.25% ownership of PT Utama Sentosa Abadi, respectively.
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 of 9 (nine) Months Ended September 30, 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 September 30, 2011 and December 31, 2010
are as follows:
September 30, 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 September 30, 2011 and December 31, 2010 are as follows:
September 30, 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 Company’s corporate secretary as of September 30, 2011 and December 31, 2010 is Jenny
Kuistono.
Total remuneration of the Company’s Commissioners and Directors for the period ended September 30,
2011 and the year ended December 31, 2010 are as follows:
Board of Commissioners
Directors
Total
September 30, 2011
Rp
December 31, 2010
Rp
8,153,230,472
18,879,713,690
27,032,944,162
10,836,824,253
15,462,529,061
26,299,353,314
As of September 30, 2011 and December 31, 2010, the Company and subsidiaries have 4,358 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 of 9 (nine) Months Ended September 30, 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:
September 30, 2011 December 31, 2010
Rp
Rp
8,823
8,991
6,796
6,981
11,956
11,956
11,524
11,029
8,611
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 of 9 (nine) Months Ended September 30, 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 Company’s 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 of 9 (nine) Months Ended September 30, 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 of 9 (nine) Months Ended September 30, 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 of 9 (nine) Months Ended September 30, 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 lessee’s 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 of 9 (nine) Months Ended September 30, 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 Company’s 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 of 9 (nine) Months Ended September 30, 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 of 9 (nine) Months Ended September 30, 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 Company’s 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 of 9 (nine) Months Ended September 30, 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 of 9 (nine) Months Ended September 30, 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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
3.
Cash and Cash Equivalent
Cash on Hand
(including 2011: USD 7,740, SGD 1,102, EUR 4,605, JPY 113,800,
AUD 6,376 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 Nationalnobu
PT Bank Danamon Indonesia Tbk
PT Bank Central Asia Tbk
PT Bank Panin Tbk
PT Bank Mega Tbk
PT Bank Rakyat Indonesia (Persero) Tbk
PT Bank Permata Tbk
PT Bank Mandiri (Persero) Tbk
PT Bank OCBC NISP Tbk
PT Bank Jasa Arta
PT Bank Internasional Indonesia Tbk
PT Bank Buana Indonesia Tbk
PT Bank Tabungan Negara (Persero) Tbk
PT Bank Agroniaga Tbk
Standard Chartered Bank
Others (each below Rp 100 million)
Foreign Currencies
PT Bank CIMB Niaga Tbk
(2011: USD 825,843, SGD 23,974,150; 2010: USD 5,492,228)
OCBC Bank, Singapore
(2011: SGD 3,074,503; 2010: SGD 3,198,902)
Credit Suisse, Singapore
(2011: USD 385,448, SGD 354,546;
2010: USD 376,751, SGD 1,063,653)
PT Bank Mega Tbk
(2011: USD 59,344, SGD 715,617;
2010: USD 1,882,335, SGD 9,764)
PT Bank OCBC NISP Tbk
(2011: USD 167,199, SGD 1,638, EUR 6,851;
2010: USD 6,687, SGD 256,194, EUR 6,847)
DBS Bank, Singapore
(2011: USD 30,943, SGD 115,579;
2010: USD 30,943, SGD 35,111,817)
PT Bank Negara Indonesia (Persero) Tbk
(2011: USD 81,318)
Others
Total Cash in Banks
25
September 30, 2011
Rp
December 31, 2010
Rp
3,865,950,443
5,063,225,418
88,055,563,370
50,009,158,654
27,258,295,239
20,391,454,768
18,773,655,836
15,213,375,349
7,363,366,734
6,265,033,852
6,149,534,754
5,704,094,548
3,902,555,613
3,229,969,785
2,303,082,283
925,395,871
528,302,489
356,322,154
205,229,196
91,240,997
27,019,168,345
67,899,337,216
-2,707,330,012
18,072,023,981
4,642,252,107
5,487,108,526
4,086,250,203
4,889,620,144
8,938,951,317
5,705,991,399
-3,134,006,870
747,432,770
844,162,206
465,278,289
88,514,013
136,805,201
170,214,740,066
49,380,619,726
20,894,320,009
22,331,537,166
5,810,300,756
10,812,728,838
5,386,921,596
16,992,235,576
1,568,216,583
1,930,508,395
1,058,486,053
245,393,806,826
717,467,872
227,922,657
462,604,007,084
-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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
September 30, 2011
Rp
December 31, 2010
Rp
946,530,516,738
293,061,048,563
90,000,000,000
32,204,500,091
13,204,500,091
4,831,767,410
2,743,900,956
2,000,000,000
1,275,580,000
1,686,217,347,826
745,550,000,000
26,500,000,000
--4,600,000,000
245,813,680
---
882,300,000,000
674,325,000,000
158,922,264,767
108,264,767
20,393,264,589
26,158,875
-2,447,493,502,080
13,962,000,000
190,197,217
789,624,145
3,152,488,247,635
2,913,963,459,607
3,660,087,191,120
September 30, 2011
December 31, 2010
4.5% - 7.25%
0.50% - 2.50%
5.25% - 8.00%
0.20% - 3.60%
September 30, 2011
Rp
December 31, 2010
Rp
Real Estate Investment Trust (REIT)
Investment in Share in:
Associates
Equity Instruments in Other Companies
1,908,428,282,263
406,294,289,217
67,902,021,299
58,316,523,011
69,571,917,104
58,357,521,011
Total Investments
2,034,646,826,573
534,223,727,332
Time Deposits
Third Parties
Rupiah
PT Bank CIMB Niaga Tbk
PT Bank Negara Indonesia (Persero) Tbk
PT Bank Mega Tbk
PT Bank Mandiri (Persero) Tbk
PT Bank Permata Tbk
PT Bank Mayapada International Tbk
PT Bank Internasional Indonesia Tbk
PT Bank Nationalnobu
Others (each below Rp 1 billion)
Foreign Currencies
Raiffeisen Bank International, Labuan
(2011: USD 100,000,000; 2010: USD 75,000,000)
PT Bank CIMB Niaga Tbk
(2011: USD 18,012,271; 2010: USD 12,041)
OCBC Bank, Singapore
(2011: SGD 3,000,775; 2010: SGD 2,000,000)
Credit Suisse, Singapore (2011: USD 2,965; 2010: USD 21,154)
Bank of India, Singapore (2010: USD 87,824)
Total Time Deposits
Total Cash and Cash Equivalent
Interest rates for time deposits are as follows:
Interest Rates
Rupiah
Foreign Currencies
4.
Investments
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
a.
Real Estate Investment Trust (REIT)
September 30, 2011
Rp
December 31, 2010
Rp
Available for Sale Securities
Acquisition Cost
Lippo-Mapletree Indonesia Retail Trust (LMIRT)
(2011: 321,614,438 units; 2010: 21,292,758 units)
First REIT (2011: 139,498,818 units; 2010: 66.545.888 units)
Foreign Exchange Differences
Accumulated Unrealized Gain (Loss):
Charged to Profit and Loss
Credited to Equity
1,198,314,532,385
574,677,224,184
904,382,885
63,555,036,845
319,341,196,911
(236,194,673)
(1,949,311,917)
136,481,454,726
(1,949,311,917)
25,583,562,051
Total Investment in Real Estate Investment Trust
1,908,428,282,263
406,294,289,217
This account represents investments in REITs which is listed in Singapore Stock Exchange.
On March 18 2011, Bridgewater International Ltd and Bowsprit Capital Corporation Ltd, both are
subsidiaries, acquired 68,750,000 units and 6,414,382 units of First REIT with acquisition cost of
SGD 35,321,512.88 and SGD 3,295,500.75, respectively.
On June 20 2011, Bridgewater International Ltd, a subsidiary, acquired 295,511,941 units of LMIRT with
acquisition cost of SGD 166,396,865.
b.
Investment in Associates
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
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
Sub Total
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
25.00
100.00
30.00
99.99
20.00
100.00
10.00
Total Investment in Associates
September 30, 2011
Acquisition
Accumulated
Cost
Equity in Net
Earnings (Losses)
Rp
Rp
Carrying Value
Rp
500,000,000
36,820,138,263 (1,000,000,000)
6,155,423,370
82,557,967,516 (77,084,873,862)
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)
-26,498,923,370 111,505,969,291 (79,596,873,862)
4,999,994,000
3,781,609,500
300,000,000
249,999,000
100,000,000
49,900,000
12,500,000
9,494,002,500
35,992,925,870
27
Accumulated
Dividend
Received
Rp
---------
36,320,138,263
11,628,517,024
7,064,356,829
2,368,153,241
1,026,853,442
--58,408,018,799
---------
4,999,994,000
3,781,609,500
300,000,000
249,999,000
100,000,000
49,900,000
12,500,000
9,494,002,500
111,505,969,291 (79,596,873,862)
67,902,021,299
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 of 9 (nine) Months Ended September 30, 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
*
**
c.
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
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
September 30, 2011 December 31, 2010
Rp
Rp
57,372,704,000
766,935,000
160,000,000
16,884,011
57,372,704,000
766,935,000
160,000,000
57,882,011
58,316,523,011
58,357,521,011
The Company’s 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.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
5.
Trade Accounts Receivable
September 30, 2011
Rp
December 31, 2010
Rp
Third Parties
Urban Development:
Land Lots
Memorial Park
Residential Houses and Shophouses
Asset Enhancements
Sub Total
42,996,254,565
27,494,840,764
16,364,710,666
2,073,674,890
88,929,480,885
36,522,738,817
29,373,886,548
85,623,090,499
1,847,572,394
153,367,288,258
Large Scale Integrated Development:
Apartments
Asset Enhancements
Sub Total
38,905,019,915
6,064,792,643
44,969,812,558
25,620,888,057
5,955,895,249
31,576,783,306
Retail Malls:
Shopping Centers
Asset Enhancements
Others
Sub Total
108,920,544,325
15,538,071,500
-124,458,615,825
129,245,814,631
22,871,814,202
172,295,775
152,289,924,608
Healthcare:
Inpatient and Outpatient
107,537,573,194
73,174,728,266
Hospitality and Infrastructure:
Town Management and Water Treatment
Hotels and Restaurants
Recreations and Sports
Others
Sub Total
78,027,580,298
23,831,480,295
133,299,410
10,716,552,442
112,708,912,445
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
133,051,617,896
611,656,012,803
(44,473,774,184)
567,182,238,619
184,292,716,719
701,338,593,760
(44,734,119,179)
656,604,474,581
2,186,188,435
-2,186,188,435
5,083,171,699
-5,083,171,699
569,368,427,054
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
29
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
The trade accounts receivable schedule from the date of the invoice is as follows:
September 30, 2011
Rp
December 31, 2010
Rp
376,737,855,347
485,797,044,845
100,271,928,110
21,474,134,802
17,646,673,766
95,525,420,778
611,656,012,803
(44,473,774,184)
567,182,238,619
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
--
--
1,120,413,549
331,097,504
56,472,000
678,205,382
2,186,188,435
-2,186,188,435
2,506,470,079
1,187,728,745
753,186,728
635,786,147
5,083,171,699
-5,083,171,699
569,368,427,054
661,687,646,280
September 30, 2011
Rp
December 31, 2010
Rp
Third Parties
Beginning Balance
Reversal
44,734,119,179
(260,344,995)
52,696,124,794
(7,962,005,615)
Ending Balance
44,473,774,184
44,734,119,179
Related Parties
Beginning Balance
Reversal
---
749,719,412
(749,719,412)
Ending Balance
--
--
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
The movements of allowance for doubtful accounts are as follows:
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.d).
Management believes that the allowance for doubtful account is adequate to cover the possibility of
uncollectible trade accounts receivable.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
6.
Other Accounts Receivable
September 30, 2011
Rp
December 31, 2010
Rp
Third Parties
Dividend
Promissory Notes (2011: USD 3,500,000 and 2010: USD 4,000,000)
Tenant Association for Apartments, Condominium and Shopping Centers
Security Services
Call Spread Option (see Note 33.c)
Others (each less than Rp 5 billion)
Sub Total
Less: Allowance for Doubtful Accounts
42,854,460,942
30,880,500,000
13,666,739,915
6,441,453,088
-66,963,020,729
160,806,174,674
(6,353,293,962)
16,387,970,632
35,964,000,000
13,766,739,915
6,431,088,288
16,992,504,426
58,435,946,239
147,978,249,500
(6,353,293,962)
Total Other Accounts Receivable - Net
154,452,880,712
141,624,955,538
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).
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.
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.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
7.
Inventories
September 30, 2011
Rp
December 31, 2010
Rp
Urban Development:
Land under Development
Residential Houses and Shophouses
Apartments
Others
Sub Total
3,716,163,036,985
703,480,454,234
44,354,212,401
6,809,992,289
4,470,807,695,909
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
Apartments
Shopping Centers
Sub Total
775,703,131,178
733,667,036,317
605,439,639,524
2,114,809,807,019
805,150,121,700
587,146,043,382
459,661,068,085
1,851,957,233,167
Retail Malls:
Shopping Centers
Land under Development
Sub Total
831,373,628,564
531,687,712,461
1,363,061,341,025
818,936,315,818
574,938,160,855
1,393,874,476,673
40,687,451,872
31,407,575,642
3,444,607,367
1,002,151,633
191,887,406
(39,505,683)
4,599,140,723
3,346,698,197
869,272,842
195,769,456
(39,505,683)
4,372,234,812
7,993,965,436,548
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 2,930,285,578 has been reclassified to investment properties (see Note 11).
Interests and other borrowing costs from bonds (see Note 15.f), loans obtained from PT Bank Negara
Indonesia (Persero) Tbk, PT Bank ICBC Indonesia and PT Bank Agroniaga Tbk (see Notes 15.a, 15.b and
15.e) have been capitalized into land under development for the period ended September 30, 2011 and the
year ended December 31, 2010 amounted to Rp 233,877,811,528 and Rp 416,256,671,864, respectively.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
As of September 30, 2011, land under development consisted of land covering a net area of approximately
28 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, 10 hectares in
Bonang Village, 20 hectares in Sukanagalih Village, 102 hectares in Margakaya Village, Telukjambe,
Karawang, 117 hectares in Cibatu Village, 14 hectares in Serang Village, 34 hectares in Sukaresmi Village,
131 hectares in Cicau Village, 3 hectares in Kuta, Bali, 34 hectares in Tanjung Merdeka Village, 23 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.d).
Land under development owned by PT Lippo Cikarang Tbk, a subsidiary, totaling to 21.9 hectares and 12.7
hectares are pledged for credit facilities obtained from PT Bank Negara Indonesia Tbk (Persero) and PT Bank
ICBC Indonesia (see Notes 15.a and 15.b).
The Company’s 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 September 30, 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 September 30, 2011.
8.
Advances
September 30, 2011
Rp
December 31, 2010
Rp
Advance for Investments:
PT Anugerah Bahagia Abadi
PT Guchi Kencana Emas
PT Prawira Tata Semesta
Sub Total
301,400,000,000
--301,400,000,000
255,000,000,000
57,443,246,813
46,655,579,000
359,098,825,813
Advance for Construction
Advance for Land Acquisition
Others
187,621,114,929
83,529,971,294
83,298,346,509
225,838,118,982
57,284,570,705
57,073,900,457
Total
655,849,432,732
699,295,415,957
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 of 9 (nine) Months Ended September 30, 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:
September 30,
2011
Rp
December 31,
2010
Rp
Percentage from Total
Assets/Liabilities
September 30, 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
11,628,517,024
7,064,356,829
4,999,994,000
3,781,609,500
2,368,153,241
1,026,853,442
712,399,000
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
0.20
0.06
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
67,902,021,299
69,571,917,104
0.36
0.43
2,186,188,435
5,083,171,699
0.01
0.03
9,919,451,291
4,891,935,451
1,844,024,893
4,301,771,698
20,957,183,333
(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)
0.05
0.03
0.01
0.02
0.11
(0.06)
0.06
0.03
0.01
0.03
0.13
(0.08)
Total Due from Related Parties - Net
8,952,482,995
9,373,247,862
0.05
0.06
Trade Accounts Payable
PT First Media Tbk
8,440,993,616
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
750,256,597
233,811,968
-1,244,204,321
3,790,587,326
1,620,804,400
599,731,672
224,811,968
2,799,999,500
1,271,533,613
0.04
0.02
0.01
0.00
-0.01
0.05
0.02
0.01
0.00
0.04
0.02
Total Due to Related Parties
7,639,664,612
10,307,468,479
0.09
0.13
795,222,786,279
776,312,009,263
9.06
9.73
Trade Accounts Receivable
Inpatient and Outpatient
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
Deferred Income
PT Matahari Putra Prima Tbk
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
September 30,
2011
Rp
Net Sales, Services and Other Revenues
PT Matahari Putra Prima Tbk
11,525,995,545
Percentage from Total
Net Sales
September 30, September 30,
2011
2010
%
%
September 30,
2010
Rp
10,122,637,770
0.40
0.45
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.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
10. Land for Development
September 30, 2011
Area
Value
sqm
Rp
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
December 31, 2010
Area
Value
sqm
Rp
1,001,010
203,350,714,722
1,001,010
203,350,714,722
3,436,106
2,089,802
803,413
692,082
239,759
121,543
83,405
71,303
8,538,423
394,400,213,870
155,352,024,097
112,455,747,318
16,961,287,500
33,313,592,430
18,526,090,259
15,699,340,352
20,283,623,533
970,342,634,081
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
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, Serang, Jayamukti and Pasirsari 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 September 30, 2011 and for the year ended December 31, 2010
amounted to Rp 271,801,931 and Rp 1,535,688,268, respectively (see Note 15.e).
Land for development of PT Erabaru Realindo, a subsidiary, with area of 65.6 hectare is pledged as collateral
for loan obtained from PT Bank Negara Indonesia (Persero) Tbk (see Notes 15.a).
Partial Land for development of PT Gowa Makassar Tourism Development Tbk, a subsidiary, with area of 21.4
hectare is pledged as collateral for loan obtained from PT Bank Mandiri (Persero) Tbk (see Note 33.a).
11. Investment Properties
Beginning
Balance
Rp
Acquisition Cost
Land
Building
Total Acquisition Cost
Accumulated Depreciation
Building
Total Accumulated Depreciation
Carrying Value
September 30, 2011
Deduction
Reclassification
Addition
Rp
Rp
Rp
Ending
Balance
Rp
104,497,432,432
459,734,537,752
564,231,970,184
----
----
-2,930,285,578
2,930,285,578
104,497,432,432
462,664,823,330
567,162,255,762
46,246,106,530
46,246,106,530
18,002,890,818
18,002,890,818
---
---
64,248,997,348
64,248,997,348
517,985,863,654
502,913,258,414
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Beginning
Balance
Rp
Acquisition Cost
Land
Building
Total Acquisition Cost
Accumulated Depreciation
Building
Total Accumulated Depreciation
Carrying Value
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 2,930,285,578. 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 67,036,306,052 for the period ended
September 30, 2011 and Rp 70,390,281,725 for the year ended December 31, 2010.
Depreciation charges are allocated as follows:
Cost of Sales and Services
Distribution Expenses
Total Depreciation Expense
September 30, 2011
Rp
December 31, 2010
Rp
10,230,482,556
7,772,408,262
18,002,890,818
12,200,180,872
9,279,505,673
21,479,686,545
The Company’s 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 September 30, 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.
37
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
12. Property and Equipment
Beginning
Balance
Rp
Addition
September 30, 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
88,702,798,630
593,251,265
251,131,800
2,075,966,794
79,840,301,706
74,788,669,400
2,185,432,246
--263,421,692,421
-159,199,758,905
422,621,451,326
--612,791,100
-276,793,363
701,001,243
1,186,440,733
788,407,503
--3,565,433,942
--3,565,433,942
(50,791,167)
17,968,090,983
--77,534,998
4,721,157,727
11,885,669,654
138,715,078
7,000,000
-34,747,377,273
-(22,299,152,299)
12,448,224,974
304,292,761,282
608,139,210,293
20,850,624,055
168,433,976,589
29,349,049,057
412,668,202,452
489,427,771,499
154,310,579,081
14,392,991,861
3,135,746,092
2,205,000,912,261
191,830,000
241,114,552,053
2,446,307,294,314
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
33,976,471,166
1,090,843,227
6,610,911,088
2,376,122,766
39,402,184,973
32,532,334,654
8,874,051,719
23,644,961
-124,886,564,554
-124,886,564,554
-202,137,687
-263,218,363
323,939,442
1,186,440,733
130,257,604
--2,105,993,829
-2,105,993,829
(1,541,103,545)
--77,992,500
1,743,448,901
12,001,231,410
165,942,464
713,244
-12,448,224,974
-12,448,224,974
143,490,458,694
17,931,821,431
121,914,237,555
21,454,949,878
293,154,401,241
235,129,528,315
92,957,938,543
14,296,391,477
3,135,746,092
943,465,473,226
191,830,000
943,657,303,226
Carrying Value
1,206,374,544,429
1,502,649,991,088
Beginning
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
Addition
December 31, 2010
Deduction
Rp
Rp
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
38
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
Correction/
Reclassification
Rp
Ending
Balance
Rp
(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
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Beginning
Balance
Rp
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
Carrying Value
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
Addition
December 31, 2010
Deduction
Rp
Rp
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
17,238,466,429
Correction/
Reclassification
Rp
(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)
1,245,661,350,665
Ending
Balance
Rp
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
1,206,374,544,429
Depreciation charges are allocated as follows:
September 30, 2011
Rp
December 31, 2010
Rp
General and Administrative Expenses
Cost of Sales and Services
Distribution Expenses
61,766,327,640
22,038,189,054
2,500,511,921
65,881,266,199
29,808,662,072
15,192,493,266
Total Depreciation Charges
86,305,028,615
110,882,421,537
The disposal of property and equipment represents sale of assets with details as follows:
September 30, 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
3,565,433,942
2,105,993,829
1,459,440,113
1,484,439,757
24,999,644
-24,999,644
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
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.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
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.c).
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.d).
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 September 30, 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 September 30, 2011.
13. Intangible Assets
Excess of Acquisition Cost over the Subsidiaries’ Net Assets
Acquisition Cost of Software
Total
Less: Accumulated Amortization
Total Intangible Assets - Net
September 30, 2011
Rp
December 31, 2010
Rp
514,941,825,562
8,220,776,119
523,162,601,681
(140,473,466,289)
234,065,201,770
5,062,808,194
239,128,009,964
(134,504,453,123)
382,689,135,392
104,623,556,841
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
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
PT Siloam International Hospitals, a subsidiary, for Rp 55,146,465,217, acquisition of PT Guchi Kencana Emas
by PT Siloam International Hospitals, a subsidiary, for Rp 23,540,326,235 and acquisition of Lippo Mapple
Indonesia RTM by Peninsula Investment Ltd, a subsidiary, for USD 19,593,926.75 (see Note 1.c).
14. Other Assets
September 30, 2011
Rp
December 31, 2010
Rp
Deferred Charges
Restricted Funds
Project Advances
Others
276,163,595,792
149,789,481,453
15,494,106,074
33,921,590,752
143,749,535,621
93,352,635,515
11,834,755,354
20,599,486,878
Total Other Assets
475,368,774,071
269,536,413,368
Deferred charges represents the Company’s 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 Rupiah’s denominated time deposits owned by the Company and
subsidiaries (see Note 3).
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
15. Loans
September 30, 2011
Rp
December 31, 2010
Rp
105,000,000,000
100,000,000,000
45,240,209,368
34,554,146,598
-284,794,355,966
448,172,201,824
---11,450,000,000
459,622,201,824
Non Bank
f. Bonds (2011: USD 395,608,000; 2010: USD 336,854,000)
3,441,668,031,292
2,916,240,540,290
Total Loans
3,726,462,387,258
3,375,862,742,114
Third Parties
Banks
a. PT Bank Negara Indonesia (Persero) Tbk
b. PT Bank ICBC Indonesia
c. Bank Pembangunan Daerah Kalimantan Timur
d. PT Bank Central Asia Tbk
e. PT Bank Agroniaga Tbk
a.
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 12%. 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 12% 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. These loans have been further extended to September
12, 2011. These facilities will be monthly extended until formal approval is obtained.
As of September 30, 2011 and December 31, 2010, the outstanding balance of this loan amounted
to Rp 55,000,000,000 and Rp 238,922,201,824, respectively.

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 12%. The loan was used to finance
the Company’s 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.
As of December 31, 2010, the outstanding balance of this loan amounted to Rp 209,250,000,000
and has been fully paid by the Company on March 10, 2011.
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 trade accounts receivable (excluding account receivable from land sold) amounted to
Rp 340.6 billion.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Interests and other borrowing costs capitalized into inventories as of September 30, 2011 and December
31, 2010 amounted to Rp 8,293,661,705 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 to equity ratio maximum 2.7 x; and
 Debt service coverage minimum 100%.

Based on Deed of Credit Agreement No. 32 dated March 29, 2011 made in presence of Wenda
Taurusita Amidjaja, S.H., a notary in Jakarta, PT Lippo Cikarang Tbk (LC), a subsidiary, obtained
a working capital credit facility with maximum amount of Rp 50,000,000,000 and bears an annual
interest rate of 12%. This loan was used to finance property and other businesses, except for land
acquisition and will mature on March 28, 2012.
As of September 30, 2011, the outstanding balance of this loan amounted to Rp 50,000,000,000.

Based on Deed of Credit Agreement No. 33 dated March 29, 2011 made in presence of Wenda
Taurusita Amidjaja, S.H., a notary in Jakarta, LC obtained a term loan credit facility with maximum
amount of Rp 432,782,000,000 and bears an annual interest rate of 12%. This loan was used to
refinance loan from the Company and will mature on March 28, 2016. Up to September 30, 2011, LC
has not used this facility.
Both facilities are secured by collaterals as follows:
 10 (ten) parcels of land with area of 655,945 sqm, consist of Right to Build (HGB) Nos. 37, 38, 39,
40, 2002, 2003, 2004, 2005, 2006 and 5981 registered under the name of PT Erabaru Realindo, a
subsidiary;
 1 (one) parcel of land with area of 127,404 sqm, with Right to Build (HGB) No. 8302 registered under
the name of LC;
 Property trade receivable (excluding account receivable from land sold) amounted to Rp 62.5 billion.
b.
PT Bank ICBC Indonesia
 Based on deed of Credit Agreement No. 85 dated October 20, 2010, made in presence of Mellyani
Noor Shandra, S.H., a notary in Jakarta, the Company, obtained on Demand Fixed Loan Credit
Facility with maximum amount of Rp 90,000,000,000, with annual interest rate of 11.75%. This loan
was used as working capital and matured on October 25, 2011. As of September 30, 2011, the
outstanding balance of this loan amounted to Rp 10,000,000,000.
This facility was secured by collaterals as follows:
 One parcel of land with area of 94,500 sqm with part of Right to Build (HGB) No. 56/Sukaresmi
registered under the name of PT Waska Sentana.
 One parcel of land with area of 2,500 sqm with HGB No. 2012/Sukaresmi registered under the name
of PT Waska Sentana.
Interests and other borrowing costs capitalized into inventories as of September 30, 2011 amounted to
Rp 910,000,000 (see Note 7).

Based on deed of Credit Agreement No. 86 and 87 dated October 20, 2010, made in presence of
Mellyani Noor Shandra, S.H., a notary in Jakarta, PT Lippo Cikarang Tbk (LC) obtained on Demand
Fixed Loan Credit Facility with maximum amount of Rp 90,000,000,000, with annual interest rate of
11.75%. This loan was used as working capital and matured on October 25, 2011. As of September
30, 2011, the outstanding balance of this loan as of September 30, 2011, amounted to
Rp 90,000,000,000.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Both facilities are secured by collaterals as follows:
 One parcel of land with area of 38,901 sqm with HGB No. 178/Sukaresmi registered under the name
of PT Waska Sentana.
 One parcel of land with area of 85,180 sqm with part of Right to Build (HGB) No. 56/Sukaresmi
registered under the name of PT Waska Sentana.
c.
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, bears an 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 no restrictive financial ratios which should be maintained by BDH.
d.
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 12% 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 7,112 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.
e.
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
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
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 the period ended September 30,
2011 and for the year ended December 31, 2010 amounted to Rp 305,209,177 and Rp 1,731,605,478,
respectively (see Note 7) and capitalized into land for development for the period ended September 30,
2011 and for the year ended December 31, 2010 amounted to Rp 271,801,931 and Rp 1,535,688,268,
respectively (see Note 10).
There is no restrictive financial ratio which should be maintained by GMTD.
This loan has been fully paid by GMTD on April 8, 2011.
f.
Bonds
September 30, 2011
Rp
December 31, 2010
Rp
Nominal (2011: USD 395,608,000 and 2010: USD 336,854,000)
Premium
Bond Issuance Cost - Net
3,490,449,384,000
75,225,842,679
(124,007,195,387)
3,028,654,314,000
-(112,413,773,710)
Total
3,441,668,031,292
2,916,240,540,290
Bond Issuance Costs
Less: Accumulated Amortization
160,410,080,171
(36,402,884,784)
185,559,382,173
(73,145,608,463)
Unamortized Bond Issuance Cost
124,007,195,387
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 September 30, 2011 and December 31,
2010, accrued interest expense amounted to USD 14,835,300 and USD 4,059,120 (equivalent to
Rp 130,891,851,900 and Rp 36,495,547,920), respectively.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Interest expense and other borrowing cost capitalized into inventories for the period ended
September 30, 2011 and for the year ended December 31, 2010 amounted to Rp 224,368,940,646 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
September 30, 2011
Rp
December 31, 2010
Rp
Estimated Cost for Construction
Interest
Endowment Care Fund
Transfer of Ownership Tax
Hedging Premium
Professional Fees
Electricity, Water and Telephone
Salaries and Employees’ Benefits
Others
290,541,480,899
141,943,915,770
28,621,341,711
26,494,854,254
24,405,153,278
8,911,854,762
8,180,456,880
6,303,100,521
45,899,000,966
310,549,884,908
56,279,388,686
21,596,987,047
25,183,410,755
10,752,187,050
5,615,267,862
8,067,017,486
3,173,775,373
46,135,741,256
Total Accrued Expenses
581,301,159,041
487,353,660,423
17. Taxation
a.
Income Tax Benefit (Expense)
September 30, 2011 September 30, 2010
Rp
Rp
Current
Deferred
(129,734,934,076)
(2,554,371,808)
(88,802,303,534)
11,264,226,509
Total Income Tax Expense
(132,289,305,884)
(77,538,077,025)
Reconciliation between income before income tax expense as presented in the consolidated statements
of income, and the Company’s taxable income is as follows:
September 30, 2011 September 30, 2010
Rp
Rp
Income before Income Tax Expense
Deduct:
Income from Subsidiaries
The Company’s Commercial Net Income (Loss)
46
702,106,469,185
476,503,181,012
681,791,559,623
20,314,909,562
474,372,383,258
2,130,797,754
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
September 30, 2011 September 30, 2010
Rp
Rp
Temporary Differences
Amortization of Deferred Charges
Depreciation of Direct Ownership of Property and Equipment
Deferred Gain on Sale and Leaseback Transactions
Sub Total
Permanent Differences
Expense of Income Subjected to Final Tax
Donation and Representation
Interest Income
Income Subject to Final Tax - Net
Sub Total
The Company's Estimated Tax Loss
-(3,005,712,583)
(5,477,585,058)
(8,483,297,641)
(14,185,984)
(3,005,712,583)
(5,477,585,058)
(8,497,483,625)
97,998,932,130
534,961,742
(73,108,181,746)
(100,847,272,393)
(75,421,560,267)
156,530,942,308
465,663,694
(30,616,046,908)
(160,414,097,857)
(34,033,538,763)
(63,589,948,346)
(40,400,224,634)
Calculation of estimated current income tax and tax payable is as follows:
September 30, 2011 September 30, 2010
Rp
Rp
The Company
Estimated Tax Loss
(63,589,948,346)
(40,400,224,634)
Subsidiaries
Estimated Taxable Income
319,988,010,715
145,696,685,228
51,309,981,759
-51,309,981,759
31,871,974,510
-31,871,974,510
4,121,408,873
74,303,543,444
78,424,952,317
7,214,704,194
49,715,624,830
56,930,329,024
129,734,934,076
88,802,303,534
Consolidated Income Tax Payable Article 29
Estimated Consolidated Income Tax Article 29
Prior Year Income Tax Article 29
51,309,981,759
26,550,170,858
31,871,974,510
58,345,813,776
Total Consolidated Income Tax Payable Article 29
77,860,152,617
90,217,788,286
Current Income Tax
Tax Credit
Estimated Income Tax of Subsidiaries Article 29
Final Tax Expense
The Company
Subsidiaries
Consolidated Final Tax Expense
Consolidated Income Tax Expense
47
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 of 9 (nine) Months Ended September 30, 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:
September 30, 2011 September 30, 2010
Rp
Rp
Income before Income Tax Expense According to the
Consolidated Statements of Income
Deduct:
Income of Subsidiaries
The Company’s Commercial Net Income (Loss)
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
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
Total Income Tax Expense
b.
702,106,469,185
476,503,181,012
681,791,559,623
20,314,909,562
474,372,383,258
2,130,797,754
(5,078,727,391)
25,211,818,098
18,277,045,436
(133,740,436)
(15,897,487,085)
(24,499,733,033)
(2,120,824,411)
(4,121,408,873)
(6,242,233,284)
(532,699,439)
40,103,524,465
7,654,011,727
(116,415,924)
(10,100,056,159)
(39,132,735,577)
(2,124,370,907)
(7,214,704,194)
(9,339,075,101)
(433,547,397)
(51,309,981,759)
(74,303,543,444)
(126,047,072,600)
13,388,597,416
(31,871,974,510)
(49,715,624,830)
(68,199,001,924)
(132,289,305,884)
(77,538,077,025)
Deferred Tax Asset – Net
Detail of deferred tax assets and liabilities 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
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 of 9 (nine) Months Ended September 30, 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
September 30, 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
(1,369,396,265)
--(751,428,146)
(2,120,824,411)
(433,547,397)
18,609,666,794
5,517,028,256
2,965,626,608
(8,181,665,787)
18,910,655,871
51,171,778,362
Deferred Tax Assets - Net
72,636,806,041
(2,554,371,808)
70,082,434,233
Taxes Payable
Income Tax
Article 25/29
Final
Article 23
Article 21
Article 26
Value Added Tax
Hotel and Restaurant Tax
Entertainment Tax
Total Taxes Payable
September 30, 2011
Rp
December 31, 2010
Rp
77,860,152,617
44,169,385,348
25,733,312,873
7,841,892,940
136,294,650
30,137,917,596
2,383,528,373
866,024,342
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
189,128,508,739
202,293,996,406
The Company received Under Payment Tax Assessment Letters (SKPKB) for Income Tax Article 23 and
Income Tax Article 26 amounted to Rp 16.7 billion and Rp 73.2 billion, respectively for fiscal year 2007.
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 Company’s 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.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
18. Advance from Customers
Third Parties
Apartment
Residential Houses and Shophouses
Shopping Centers
Land Lots
Total Advance from Customers
September 30, 2011
Rp
December 31, 2010
Rp
909,831,160,710
565,897,628,021
361,308,218,338
403,322,290,615
742,933,483,836
392,699,251,812
225,432,863,245
317,524,174,081
2,240,359,297,684
1,678,589,772,974
Details of the percentage of advances from customer to sales price on September 30, 2011 and December 31,
2010:
September 30, 2011
Rp
December 31, 2010
Rp
100%
50% - 99%
20% - 49%
below 20%
1,169,027,730,068
272,819,689,160
594,937,427,165
203,574,451,291
1,011,478,106,884
257,375,012,910
341,937,536,831
67,799,116,349
Total
2,240,359,297,684
1,678,589,772,974
September 30, 2011
Rp
December 31, 2010
Rp
795,222,786,279
776,312,009,263
88,706,526,012
-9,877,031,428
98,583,557,440
80,478,700,928
45,143,095,372
8,995,740,726
134,617,537,026
893,806,343,719
910,929,546,289
19. Deferred Income
Related Parties
Rent (see Note 9)
Third Parties
Rent
Excess of Net Assets over Acquisition Cost - Net
Others
Sub Total
Total Deferred Income
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
20. Deferred Gain on Sale and Leaseback Transaction
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
Deferred Gain on Sale and Leaseback - Net
September 30, 2011
Rp
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
(14,632,012,106)
(234,999,574,431)
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)
644,441,557,991
695,637,180,197
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
Company’s 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:
December 31, 2010
Interest Rates
Salary Increase Projection Rate
Mortality Rate
Permanent Disability Rate
Withdrawal Rate
:
:
:
:
:
Proportion Method Intake of Normal Pension Method
Method
:
:
51
10%
8%
Indonesia – II
10% x TMI – II
1% for age 18 – 44,
0% for age 45 – 54
-Projected Unit Credit
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
22. Capital Stock
The Company’s stockholders composition as of September 30, 2011 and December 31, 2010 are as follows:
Stockholders
Total
Shares
September 30, 2011
Percentage
Issued
Ownership
and Fully Paid
%
Rp
Pacific Asia Holdings Ltd
Fidelity Magellan Fund
Others (each less than 5%)
4,126,619,908
1,346,733,625
17,604,336,086
17.88
412,661,990,800
5.84
134,673,362,500
76.28 1,760,433,608,600
Total
23,077,689,619
100.00 2,307,768,961,900
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 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.
On June 6, 2011, the Company issued 1,450,000,000 new shares (see Note 1.b) through Non Preemptive
Rights Issuance.
23. Additional Paid-in Capital – Net
September 30, 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
91,701,282,075
91,701,282,075
Excess of Market Value Over Par Value of Stock Issued
in Business Combination Exercised under Purchase Method
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Rights Issue III
Premium on Stock
Stock Issuance Cost
Sub Total
Non Preemptive Rights Issuance
Premium on Stock
Stock Issuance Cost
Sub Total
Total Additional Paid-in Capital - Net
September 30, 2011
Rp
December 31, 2010
Rp
1,946,492,065,800
(16,336,206,199)
1,930,155,859,601
1,946,492,065,800
(5,977,083,038)
1,940,514,982,762
812,000,000,000
(769,067,852)
811,230,932,148
----
4,045,608,998,297
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 Company’s issued shares.
Premium on exercising Warrant Series I represents the difference between warrant execution price and par
value.
On June 6, 2011, the Company issued 1,450,000,000 new shares (see Note 1.b) through Non Preemptive
Rights Issuance.
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
275,837,221,176
(85,173,967,500)
190,663,253,676
(84,027,724,260)
106,635,529,416
Net Asset Value of Lippo Land
Acquisition Cost
Difference in Value
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
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Difference in value from the restructuring transaction of PT Saptapersada Jagatnusa (SPJN), was incurred
during the acquisition of SPJN by the Company in 2001.
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
Investment in FREIT (see Note 4)
Bridgewater International Ltd
Bowsprit Capital Pte Ltd
Investment in LMIRT (see Note 4)
Bridgewater International Ltd
Lippo Mappletree Indonesia RTM Ltd
Unrealized Gain on Changes in Fair Value of
Available-for-Sale Financial Assets
September 30, 2011
Rp
December 31, 2010
Rp
(1,906,478,024)
14,389,490,688
(11,327,794,104)
10,091,153,200
88,038,957,074
35,959,484,988
-26,820,202,955
136,481,454,726
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 made in
presence of Unita Christina Winata, S.H., a notary in Tangerang, the Company’s 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 made
in presence of Unita Christina Winata, S.H., a notary in Tangerang, the Company’s shareholders approved
among others, disbursement of cash dividend amounted to Rp 150 billion.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
27. Net Sales, Services and Other Revenues
September 30, 2011
September 30, 2010
Rp
Rp
Urban Development:
Land Lots
Residential Houses and Shophouses
Memorial Park
Asset Enhancements
Sub Total
521,098,930,299
306,738,357,703
82,684,302,360
10,476,283,360
920,997,873,722
322,039,616,696
192,564,310,156
65,713,709,695
8,311,490,029
588,629,126,576
Large Scale Integrated Development:
Apartments
Asset Enhancements
Sub Total
488,188,958,214
19,305,682,498
507,494,640,712
399,581,953,883
16,124,375,853
415,706,329,736
Retail Malls:
Asset Enhancements
Shopping Centers
Sales Return of Shopping Centers
Sub Total
97,547,481,809
6,229,518,985
(1,368,456,349)
102,408,544,445
77,354,769,957
10,477,054,150
(7,316,103,831)
80,515,720,276
198,350,705,589
189,783,812,070
64,138,626,159
22,625,874,761
11,793,452,616
571,424,891
31,203,880,818
176,840,574,861
156,037,241,094
63,292,790,942
21,819,455,225
9,868,230,988
405,872,200
18,669,351,828
235,397,416,877
116,366,611,158
12,381,234,551
11,657,795,079
894,270,834,569
195,005,594,948
94,695,452,281
11,695,117,063
11,470,254,954
759,799,936,384
Hospitality and Infrastructure:
Hotels and Restaurants
Town Management
Water and Sewage Treatment
Recreation and Sports
Others
Sub Total
160,402,099,590
64,050,502,971
59,561,697,559
36,965,158,428
23,185,291,571
344,164,750,119
144,092,575,257
62,527,633,038
51,850,974,709
33,245,372,248
17,279,081,520
308,995,636,772
Property and Portfolio Management:
Management Fees
137,845,717,343
74,871,131,547
2,907,182,360,910
2,228,517,881,291
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
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 Company’s assets.
There are no sales to customer with sales amount above 10% of net revenues for respective periods.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
28. Cost of Sales and Services
September 30, 2011
September 30, 2010
Rp
Rp
Urban Development:
Land Lots
Residential Houses and Shophouses
Memorial Park
Sub Total
296,706,403,113
192,419,087,511
15,861,872,821
504,987,363,445
104,602,009,477
124,922,129,396
11,350,982,134
240,875,121,007
Large Scale Integrated Development:
Apartments
Asset Enhancements
Sub Total
255,611,309,493
12,245,800,396
267,857,109,889
218,837,915,026
1,289,511,103
220,127,426,129
Retail Malls:
Asset Enhancements
Shopping Centers
Sales Return of Shopping Centers
Sub Total
23,346,342,919
2,836,450,706
(834,786,531)
25,348,007,094
25,271,037,044
3,239,547,633
(2,412,715,364)
26,097,869,313
195,492,567,976
137,141,158,824
22,161,006,232
14,017,382,563
10,884,139,702
4,566,682,333
12,961,181,458
177,256,702,012
105,407,477,628
17,715,632,125
11,275,168,204
8,803,778,105
3,193,471,386
5,676,526,166
149,172,765,766
76,689,665,910
15,568,716,414
8,020,806,491
2,954,317,243
10,795,343,769
660,425,734,681
133,043,820,368
70,980,579,668
15,507,777,743
8,433,617,349
2,109,662,014
6,364,602,048
565,768,814,816
55,842,092,309
40,283,250,876
20,832,209,846
11,982,808,086
6,382,952,650
135,323,313,767
62,185,295,216
33,309,439,965
20,402,653,344
11,939,828,127
11,376,682,019
139,213,898,671
52,347,112,602
13,086,685,881
1,646,288,641,478
1,205,169,815,817
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
Hospitality and Infrastructure:
Hotels and Restaurants
Town Management
Water and Sewage Treatment
Recreation and Sports
Others
Sub Total
Property and Portfolio Management:
Management Fees
Total Cost of Sales and Services
There are no purchases above 10% of net revenues for respective periods.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
29. Operating Expenses
a.
Distribution Expenses
Marketing and Advertising
Salaries and Employees’ Benefits
Repairs and Maintenance
Management Fees
Depreciation
Office Supplies
Transportation and Accommodation
Rent
Electricity and Water
Communication
Others
Total Distribution Expenses
b.
September 30, 2011
September 30, 2010
Rp
Rp
84,789,105,949
26,983,037,415
17,106,414,051
10,284,753,800
10,272,920,183
3,791,310,633
3,782,046,533
2,627,635,409
2,383,290,502
1,093,531,996
3,650,263,380
42,946,215,018
25,898,478,183
9,984,728,331
10,809,810,468
10,311,917,997
5,395,566,217
4,319,796,461
3,043,827,489
9,412,830,561
1,547,711,415
1,507,874,659
166,764,309,851
125,178,756,799
General and Administrative Expenses
September 30, 2011
September 30, 2010
Rp
Rp
Salaries and Employees’ Benefits
Rent
Depreciation
Electricity and Water
Professional Fees
Transportation and Accommodation
Repairs and Maintenance
Office Supplies
Communication
Insurance
Training and Seminar
Membership and Subscription Fees
Taxes
Representation and Entertainment
Provision for Doubtful Accounts
Others
179,127,104,368
74,615,648,029
61,766,327,640
45,475,606,153
22,607,179,379
18,654,990,150
15,671,738,682
13,678,341,230
6,933,303,221
3,659,020,573
3,432,722,988
4,147,071,802
3,393,536,426
2,087,426,035
-15,577,713,212
163,249,111,183
74,956,338,111
60,827,756,722
39,133,141,898
22,634,493,689
17,353,127,418
17,890,958,873
15,495,033,463
8,336,075,449
3,457,108,287
6,182,219,267
4,999,556,962
133,144,797
1,423,947,527
111,479,492
8,240,641,029
Total General and Administrative Expenses
470,827,729,888
444,424,134,167
30. Penalties Income (Expenses) – Net
This account represents penalties on cancellation of sales transactions, late payments from customers and late
constructions by the Company.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
31. Interest Income (Expenses) – Net
Interest Income
Interest Expenses
Total Interest Income (Expenses) - Net
September 30, 2011
September 30, 2010
Rp
Rp
85,325,954,305
(67,383,645,626)
16,586,678,172
(49,016,748,679)
17,942,308,679
(32,430,070,507)
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 earnings per share are as follows:
September 30, 2011
Residual Net Income (Rupiah)
Weighted Average Number of Common Stocks (Share)
Basic Earnings per Share (Rupiah)
September 30, 2010
480,983,992,588
348,662,816,271
22,243,806,835
17,302,151,695
21.62
20.15
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
toll revenues from North and South Karawaci exit toll gates for a period of 10 (ten) years starting
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
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 hotel’s
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 September 30, 2011 and 2010
amounted to Rp 166,666,500, 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 URA’s 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 September 30,
2011 and 2010 amounted to Rp 34.5 billion and Rp 21.1 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.

As of September 30, 2011, PT Gowa Makassar Tourism Development Tbk, a subsidiary, has
unused non revolving working capital and revolving working capital facilities obtained from PT Bank
Mandiri (Persero) Tbk totaling to Rp 10,000,000,000 and Rp 40,000,000,000, respectively.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)

The Company and subsidiaries entered into several agreements with contractors for development of
their projects. As of September 30, 2011 and December 31, 2010 total outstanding commitment
amounted to Rp 1,144 billion and Rp 803 billion, respectively. Several of significant contracts that
are not yet realized on September 30, 2011 are as follows:
Companies
Contractor
Contract
Value
(Rp billion)
PT. Lippo Cikarang Tbk
PT. Lippo Cikarang Tbk
PT. Pamor Paramita Utama
PT. Mandiri Cipta Gemilang
PT. Almaron Perkasa
PT. Mandiri Cipta Gemilang
PT. Mandiri Cipta Gemilang
PT. Mandiri Cipta Gemilang
PT. Almaron Perkasa
PT. Mandiri Cipta Gemilang
PT. Mandiri Cipta Gemilang
PT. Almaron Perkasa
PT. Mandiri Cipta Gemilang
PT. Almaron Perkasa
PT. Almaron Perkasa
PT. Mandiri Cipta Gemilang
PT. Lippo Karawaci Tbk.
PT. Almaron Perkasa
b.
PT. Trilogi Suryawisesa
PT. Lampiri
PT. Pulauintan Bajaperkasa Konstruksi
PT. Pembangunan Perumahan
PT. Pembangunan Perumahan
PT. Indonesia Pondasi Raya
PT. Adhimix Precast Indonesia
PT. Cahaya Teknindo Majumandiri
PT. Surya Marga Luhur
PT. Glenindo Citramandiri
PT. Pangkal Multikarya
PT. Pelitamaju Multiswakarsa
PT. Surya Marga Luhur
PT. Pulauintan Bajaperkasa Konstruksi
PT. Cahaya Teknindo Majumandiri
PT. Pelitamaju Multiswakarsa
PT. Surya Bangun Persada Indah
PT. Superhelindo Jaya
240
117
84
183
111
58
56
39
85
57
26
33
33
62
29
27
45
32
Unrealized
of Contract
Value
(Rp billion)
112
87
84
58
48
43
31
27
26
23
20
20
19
18
17
12
10
10
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.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)

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
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 September 30, 2011 and 2010 amounted to
Rp 115,911,658,872 and Rp 114,474,956,468, 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 September 30, 2011 amounted to Rp 18,651,600,000.

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.
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
c.
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.

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
September 30, 2011, the fair value of this facility is amounting to USD 906,473.98 (equivalent to
Rp 7,997,819,926).
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)

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 September 30,
2011, the fair value of this facility is amounting to USD -493,054.00 (equivalent to
Rp -4,350,215,442).

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 September 30, 2011, the fair value of these facilities is amounting to USD -387,630.84 (equivalent
to Rp -3,420,066,901) and USD -398,323.69 (equivalent to Rp -3,514,409,917), 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 September 30, 2011, the fair value of this facility is amounting to USD 205,167.84
(equivalent to Rp 1,810,195,874).

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 September
30, 2011, the fair value of this facility is amounting to USD -740,890.00 (equivalent to
Rp -6,536,872,470).

On April 5, 2011, the Company entered into Non Deliverable USD Call Spread Option facilities with
Morgan Stanley & Co amounted to USD 40,000,000 with spread between Rp 8,500; Rp 9,200 and
Rp 11,500 with annual Premium Rates 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 September 30, 2011, the
fair value of this facility is amounting to USD -1,378,865.74 (equivalent to Rp -12,165,732,424).

On April 6, 2011, the Company entered into Non Deliverable USD Call Spread Option facilities with
J.P. Morgan (S.E.A.) Limited, Singapore branch amounted to USD 30,000,000, with spread between
Rp 8,250; Rp 9,200 and Rp 11,500 with annual Premium Rates 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
September 30, 2011, the fair value of this facility is amounting to USD -537,838.40 (equivalent to
Rp -4,745,348,245).

On April 12, 2011, the Company entered into Non Deliverable USD Call Spread Option facility with
BNP Paribas, Singapore branch amounted to USD 30,000,000 for spread between Rp 8,000;
Rp 9,200 and Rp 11,500 with annual Premium Rate of 1.97% from Notional Amount. Premium will
be paid on every April 30 and October 31. This facility will due on April 30, 2015. As of September
30, 2011, the fair value of this facility is amounting to USD -1,179,061.00 (equivalent to
Rp -10,402,855,203).
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
34. Segment Information
Urban
Development
Rp
September 30, 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
920,997,874
507,494,641
102,408,544
894,270,835
344,164,750
137,845,717
2,907,182,361
Gross Profit
416,010,510
239,637,531
77,060,537
233,845,100
208,841,436
85,498,605
1,260,893,719
(279,114,685)
35,883,864
77,548,572
(2,293,343)
(43,852,168)
(7,346,565)
(12,709,938)
--
(43,690,913)
65,108
913,074
--
(119,251,499)
(9,492,165)
(13,675,232)
--
(102,511,836)
(1,426,843)
(3,105,348)
5,165,947
(49,170,939)
258,910
9,018,749
--
(637,592,040)
17,942,309
57,989,877
2,872,604
Income before Tax Benefit (Expense)
248,034,918
175,728,860
34,347,806
91,426,204
106,963,356
45,605,325
702,106,469
Income Tax Benefit (Expense)
Current Tax
Deferred Tax
Profit for The Period
(61,813,046)
2,240,548
188,462,420
(25,532,001)
(4,885,627)
145,311,232
(9,447,669)
-24,900,137
(21,136,182)
87,615
70,377,637
(5,184,839)
3,092
101,781,609
(6,621,197)
-38,984,128
(129,734,934)
(2,554,372)
569,817,163
Profit Attributable to:
Owners of Parent Company
Non-controlling Interest
81,148,210
107,314,210
4,212,043
141,099,189
(116,815)
25,016,952
-70,377,637
-101,781,609
3,589,733
35,394,395
88,833,171
480,983,992
Net Income
188,462,420
145,311,232
24,900,137
70,377,637
101,781,609
38,984,128
569,817,163
Segment Assets
Investment in Associates
11,392,164,686
60,505,896
2,713,169,678
--
2,054,566,329
--
1,360,355,647
7,393,145
586,589,428
2,980
448,591,701
--
18,555,437,469
67,902,021
Total Assets
11,452,670,582
2,713,169,678
2,054,566,329
1,367,748,792
586,592,408
448,591,701
18,623,339,490
5,674,397,051
2,122,771,129
329,620,448
503,067,299
102,359,919
40,495,186
8,772,711,031
41,282,246
16,884,061
18,483,339
3,749,089
2,739,238
9,816,667
191,129,971
36,871,267
6,793,459
36,112,557
-874,278
260,428,253
104,307,919
29,554,409
4,130,869
64,232
179,142
--
--
33,928,652
1,385,760,522
(1,297,904,851)
(485,878,958)
664,131,973
(569,571,979)
(20,687,517)
197,742,393
(96,038,547)
(8,069,744)
858,838,865
(604,033,898)
(227,422,193)
331,926,072
(216,225,228)
(16,466,655)
148,897,560
(326,188,583)
(29,220,921)
3,587,297,385
(3,109,963,086)
(787,745,988)
(398,023,287)
73,872,477
93,634,102
27,382,774
99,234,189
(206,511,944)
(310,411,689)
Cash Flows from Investing
Receipt from Investment and
Promissory Note
(1,331,658,077)
Acquisition of Property and Equipment
(41,282,246)
Others
(54,852,781)
-(18,483,339)
--
-(2,739,238)
--
-(191,129,971)
(99,625)
-(6,793,459)
--
(34,256,879)
---
(1,365,914,956)
(260,428,253)
(54,952,406)
(1,427,793,104)
(18,483,339)
(2,739,238)
(191,229,596)
(6,793,459)
(34,256,879)
(1,681,295,615)
957,000,000
568,970,232
---
---
---
---
---
957,000,000
568,970,232
(254,622,202)
(339,258,339)
-(22,102,647)
-(69,913,707)
-280,619,250
-(94,565,929)
-243,224,961
(254,622,202)
(1,996,411)
932,089,691
(22,102,647)
(69,913,707)
280,619,250
(94,565,929)
243,224,961
1,269,351,619
Operating Expenses
Interest Income (Expenses) - Net
Other Income (Expenses) - Net
Income (Loss) of Associates
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
Non Preemptive Rights Issuance
Proceed from Loans
Repayment of Loans and
Promissory Notes
Others
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
Urban
Development
Rp
September 30, 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
588,629,126
415,706,330
80,515,720
759,799,936
308,995,637
74,871,132
2,228,517,881
Gross Profit
347,754,004
195,578,904
54,417,851
194,031,122
169,781,738
61,784,446
1,023,348,065
(252,887,144)
(21,514,722)
71,030,485
2,495,671
(35,524,107)
(1,906,908)
(18,419,128)
--
(34,348,812)
(269)
5,838,671
--
(97,649,392)
(7,854,555)
(9,703,996)
--
(103,269,817)
(1,211,955)
(3,354,306)
2,961,747
(45,923,619)
58,339
4,338,934
--
(569,602,891)
(32,430,070)
49,730,660
5,457,418
Income before Tax Benefit (Expense)
146,878,294
139,728,761
25,907,441
78,823,179
64,907,407
20,258,100
476,503,182
Income Tax Benefit (Expense)
Current Tax
Deferred Tax
Profit for The Period
(31,277,367)
12,246,091
127,847,018
(21,445,874)
-118,282,887
(5,977,562)
-19,929,879
(20,936,854)
(180,653)
57,705,672
(4,238,401)
(801,212)
59,867,794
(4,926,246)
-15,331,854
(88,802,304)
11,264,226
398,965,104
Profit Attributable to:
Owners of Parent Company
Non-controlling Interest
94,396,093
33,450,925
111,537,119
6,745,768
19,417,073
512,806
57,705,672
--
59,867,794
--
5,739,065
9,592,789
348,662,816
50,302,288
127,847,018
118,282,887
19,929,879
57,705,672
59,867,794
15,331,854
398,965,104
Segment Assets
Investment in Associates
7,392,217,277
66,740,752
2,171,689,948
--
2,005,987,440
--
661,894,856
2,393,151
623,825,387
2,980
148,878,241
--
13,004,493,149
69,136,883
Total Assets
7,458,958,029
2,171,689,948
2,005,987,440
664,288,007
623,828,367
148,878,241
13,073,630,032
Segment Liabilities
4,918,390,459
1,878,116,421
264,637,877
177,576,376
106,974,351
16,647,763
7,362,343,247
42,404,084
15,870,058
42,742,711
3,088,796
3,178,999
9,306,283
40,534,203
32,511,235
9,202,942
38,681,092
-414,280
138,062,939
99,871,744
28,167,574
5,411,299
647,558
698,731
--
--
34,925,162
715,095,934
(1,255,772,166)
(688,236,859)
206,161,236
(121,312,097)
(11,657,176)
94,703,513
(66,549,044)
(10,579,312)
735,877,531
(541,921,183)
(102,743,226)
264,632,206
(231,724,518)
(16,046,357)
56,920,955
(31,559,823)
(31,836,016)
2,073,391,375
(2,248,838,831)
(861,098,946)
(1,228,913,091)
73,191,963
17,575,157
91,213,122
16,861,331
(6,474,884)
(1,036,546,402)
32,895,517
(42,404,084)
(19,323,608)
-(42,742,711)
--
-(3,178,999)
--
-(40,534,203)
33,387
-(9,202,942)
--
4,339,290
---
37,234,807
(138,062,939)
(19,290,221)
(28,832,175)
(42,742,711)
(3,178,999)
(40,500,816)
(9,202,942)
4,339,290
(120,118,353)
721,760,392
--
--
--
--
--
721,760,392
(20,100,964)
44,006,489
---
(22,596,500)
--
(1,009,878)
(42,667,706)
---
---
(43,707,342)
1,338,783
745,665,917
--
(22,596,500)
(43,677,584)
--
--
679,391,833
Operating Expenses
Interest Income (Expenses) - Net
Other Income (Expenses) - Net
Income of Associates
Net Income
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
Placement of Investment - Net
Acquisition of Property and Equipment
Others
Cash Flows from Financing
Proceed from Loans
Repayment of Loans and
Promissory Notes
Others
65
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 of 9 (nine) Months Ended September 30, 2011
(Expressed In Full Rupiah, Unless Otherwise Stated)
35. Asset and Liabilities Denominated in Foreign Currencies
September 30, 2011
Foreign Currencies
USD
JPY
SGD
Equivalent
EUR
AUD
Rupiah
Assets
Cash and Cash Equivalent
119,581,775
113,800
31,253,264
15,368
6,376
1,267,718,939,399
-
-
280,816,404
-
-
1,908,428,282,263
Trade Accounts Receivable
1,833,155
-
1,114,521
-
-
23,748,207,542
Other Accounts Receivable
3,512,917
-
7,560,921
-
-
82,378,483,658
Other Assets
49,950
-
3,750,781
-
-
25,931,010,156
Total Assets
124,977,797
113,800
324,495,891
15,368
6,376
3,308,204,923,018
Investments
Liabilities
Loans
395,608,000
-
-
-
-
3,490,449,384,000
Trade Accounts Payable
960,331
-
3,551,598
-
-
32,623,964,601
Other Accounts Payable
4,065,522
-
-
-
-
35,870,099,283
Accrued Expenses
Total Liabilities
Total Asset (Liabilities) - Net
17,833,301
-
588,478
-
-
161,342,509,310
418,467,154
--
4,140,076
-
--
3,720,285,957,194
(293,489,357)
113,800
320,355,815
15,368
6,376
(412,081,034,176)
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
Court’s. 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
Company’s legal counsel, the event will not influence nor threat the ownership status of the land on which
Depok Town Square was built.
66
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 of 9 (nine) Months Ended September 30, 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 September 30, 2011, more than 92% of the Company’s loans are fixedrated.
(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 Company’s 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.
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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 of 9 (nine) Months Ended September 30, 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.
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