NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024 14. Property, plant and equipment (cont’d) Assets fully depreciated but still in use As at 31 December 2024, the costs of the Group’s property, plant and equipment that have been fully depreciated but still being in utilized amounted to Rp4,854.4 billion (2023: Rp4,302.8 billion), which mainly consist of buildings and improvements, plant and machinery, and heavy equipment, transportation equipment and vessels. Disposals of property, plant and equipment During the years ended 31 December 2024 and 2023, the Group sold heavy equipment, transportation equipment and office equipment as follows: 2024 2023 Rp million Rp million Proceeds from disposal 12,973 34,598 Net carrying value (8,381) (9,556) Gain on disposal of property, plant and equipment 4,592 25,042 The net gains on these disposals were recognised as part of other operating income in the consolidated statement of comprehensive income. Capitalisation of borrowing costs During the year ended 31 December 2024, the borrowing costs capitalised by certain subsidiaries to their immature bearer plants under cultivation, and building and machineries under constructions amounted to Rp13.6 billion (2023: Rp42.6 billion) based on capitalisation rates ranging from 4.28% to 9.37% (2023: 5.44% to 8.69%). Assets under insurance coverage As at 31 December 2024, the fixed assets are covered by insurance against losses from fire and other risks under a policy package with total coverage of Rp16,611.9 billion (2023: Rp16,106.5 billion). 15. Leases Group as a lessee The Group has lease contracts for various assets, including land, buildings and office equipment used in its operations. The Group is restricted from assigning and subleasing the leased assets. • Lease of buildings generally have lease terms of 2 years. • Office equipment generally have lease terms of 3 years. • Land use rights are in the form of HGB, HGU, HP, HPL and generally have lease terms from 5 to 40 years, and can be renewed and/or extended upon their expiration. The Group’s bearer plants are planted and managed on the area which have obtained Rights to Cultivate (“Hak Guna Usaha” or “HGU”), or have obtained location permits and in the process of obtaining HGU. Group Overview Financials Other information Sustainability and Governance Operation and Financial Review Indofood Agri Resources Ltd. 112
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