NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024 13. Biological assets (cont’d) Fair values of biological assets (cont’d) Biological assets under non-current assets - timber plantations (cont’d) The movements for timber plantations are as follows: Group Note 2024 2023 Rp million Rp million At fair value At 1 January 322,454 322,743 Additions 3,704 6,633 Decreases due to harvest (3,238) (25) Loss arising from changes in fair value of biological assets (7,154) (6,897) At 31 December 34(a) 315,766 322,454 Biological assets under current assets - agricultural produce of bearer plants The Group adopted the income approach to measure the fair value of the unharvested agricultural produce of bearer plants which mainly comprise of FFB, oil palm seeds, latex and sugar cane. The key assumptions applied on the fair value of FFB and latex are as follows: (i) Estimated volume of subsequent harvest as of reporting date; (ii) Selling prices of FFB and latex are based on the market prices at year end. The key assumptions applied on the fair value of sugar cane are as follows: (i) Cane tree is available for annual harvest for 12 months after initial planting, and subsequently up to 3 more annual harvests; (ii) Discount rate used represents the asset specific rate for the cane produce which is applied in the discounted future cash flows calculation; (iii) The projected selling price of sugar over the projection period is based on the average actual selling price during the year, but not exceeding the highest retail price imposed by the Ministry of Trade of Indonesia. The key assumptions applied on the fair value of oil palm seeds are as follows: (i) Estimated volume of 6 months subsequent harvest as at reporting date; (ii) Discount rate used represents the asset specific rate for the seed produce which is applied in the discounted future cash flows calculation; (iii) Selling price of palm seeds is based on average actual selling price during the year. Group Overview Financials Other information Sustainability and Governance Operation and Financial Review Annual Report 2024 107
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