Notes tothe financial statements For the financial year ended 31 December 2023 5. Cost of sales Group Note 2023 Rp million 2022 Rp million Raw materials used 4,467,285 5,782,624 Harvesting, upkeep and cultivation costs 3,105,489 2,984,278 Manufacturing and other overhead expenses 4,591,682 4,730,671 Net changes in inventories 629,639 (337,538) 23 12,794,095 13,160,035 Changes in allowance for decline in market value and obsolescence of inventories 23 (73,072) 78,323 Total 12,721,023 13,238,358 During the financial year ended 31 December 2023 and 2022, there were no purchases from any individual supplier with cumulative amount exceeded 10% of the total cost of sales. 6. Other operating income Group Note 2023 Rp million 2022 Rp million Compensation income 70,488 79,718 Gain on disposal of property, plant and equipment 25,042 1,632 Gain on disposal of assets held for sale – 31,776 Sale of palm kernel shells 15,928 8,728 Sale of red sugar 5,858 6,080 Sale of export allocation rights 60 25,357 Sale of scraps 3,260 2,127 Freight income 8,843 4,199 Rental income 15 8,052 5,614 Gain on disposal of obsolete goods 2,104 2,150 Management fee income 1,260 1,943 Changes in provision for assets dismantling costs 28 – 1,979 Write-back of allowance for doubtful debt 24 122 – Net gain arising from write-off of right-of-use assets and lease liabilities 153 27 Gain arising from waiver of amount due to an associate company* 99,256 – Others 38,266 26,365 Total 278,692 197,695 * On 29 December 2023, the board of directors of FP Natural Resources Limited (“FPNRL”), an associate of the Company, agreed to waive the amount due to FPNRL of USD 6.4 million, equivalent to Rp 99,256 million, and discharge the Company from all obligations of repayments. 97 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION Annual Report 2023
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