INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
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For the financial year ended 31 December 2015
13.
BIOLOGICAL ASSETS (CONT’D)
Inputs used in determining the fair values of the biological assets are as follows:
Inputs (Hierarchy)
Range of Quantitative Inputs
Sensitivity of the Inputs to the Fair Value
Discount rate
Determined using capital
asset pricing model
Oil Palm: 13.99%
Rubber: 14.25%
Sugar cane: 11.89%
Timber: 9.33%
An increase/(decrease) in the discount
rate would result in a (decrease)/increase
in the fair value of biological assets.
Projected price
Oil palm – CPO Price:
US$0.63/kg – US$0.70/kg
Rubber – RSS 1: Rp19,822/kg – Rp29,670/kg
Sugar cane – sugar:
Rp9,392/kg – Rp10,140/kg
Timber – logs:
Rp529,687 to Rp590,712/m
3
An increase/(decrease) in the prices would
result in an increase/(decrease) in the fair
value of biological assets.
Estimated FFB yield
Oil Palm – FFB:
5 – 31 tonnes/hectare
Rubber – Cup lump:
0.18 – 1.98 tonnes/hectare
Sugar Cane – Cane:
39 – 78 tonnes/hectare
Timber – Felled trees:
24m
3
– 176m
3
/hectare
An increase/(decrease) in FFB yield would
result in an increase/(decrease) in the fair
value of biological assets.
Exchange rate
Rp13,500/US$1 – Rp13,900/US$1
An increase/(decrease) in the exchange
rate would result in an increase/(decrease)
in the fair value of biological assets.
Inflation rate
3.5% to 4.7%
An increase/(decrease) in the inflation rate
would result in a (decrease)/increase in
the fair value of biological assets.
Capitalisation of borrowing costs
During the year ended 31 December 2015, borrowing costs capitalised to biological assets of the Group in the course
of development amounted to Rp139.1 billion (2014: Rp73.9 billion) based on the specific identification of the related
borrowings and using interest rates ranging from 8.01% to 11.67% (2014: from 7.02% to 12.28%).
