NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024 23. Inventories Group 2024 2023 Rp million Rp million Balance sheet: Raw materials 1,964,823 1,049,297 Finished goods 1,575,610 871,293 Spare parts and factory supplies 452,362 550,588 Total inventories at the lower of cost and net realisable value 3,992,795 2,471,178 Included in the above inventories balance is the allowance for decline in market value and obsolescence of inventories with the following movement: Group 2024 2023 Rp million Rp million Balance at 1 January 105,865 178,937 Allowance charge for the year 51,907 60,117 Reversal of allowance (61,596) (133,189) Write-off (8,820) – At 31 December 87,356 105,865 Allowance for decline in market value of inventories and obsolescence of inventories is estimated based on the best available facts and circumstances, including but not limited to, the inventories’ own physical conditions, their market selling prices, estimated costs of completion and estimated costs to be incurred for their sales. The provisions are re-evaluated and adjusted as additional information are received at the reporting date. Group Note 2024 2023 Rp million Rp million Consolidated statement of comprehensive income: Inventories recognised as an expense in cost of sales, net 5 11,202,970 12,721,023 Inclusive of the following charges: - Allowance for decline in market value and obsolescence of inventories 51,907 60,117 - Reversal of decline in market value and obsolescence of inventories (61,596) (133,189) 5 (9,689) (73,072) As at 31 December 2024, inventories are covered by insurance against losses from fire and other risks under a certain policy package with total coverage of Rp1,990.6 billion (2023: Rp1,927.1 billion), which in management’s opinion, is adequate to cover possible losses that may arise from such risks. Group Overview Financials Other information Sustainability and Governance Operation and Financial Review Annual Report 2024 135
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