Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance 101 Annual Report 2025 Notes to the financial statements For the financial year ended 31 December 2025 13. Biological assets (cont’d) Fair values of biological assets (cont’d) Biological assets under non-current assets - timber plantations (cont’d) The key assumptions applied are as follows: (i) Timber tree is available for harvest only once approximately 8 years after initial planting; (ii) Discount rate used represents the asset specific rate for the Group’s timber plantations operations which are applied in the discounted future cash flows calculation; (iii) The projected selling price of logs over the projection period are based on average selling price of the agricultural produce which is extrapolated based on changes of plywood log market price. The movements for timber plantations are as follows: Group Note 2025 2024 Rp million Rp million At fair value At 1 January 315,766 322,454 Additions 15,846 3,704 Decreases due to harvest (83,864) (3,238) Gain/(loss) arising from changes in fair value of biological assets 11,997 (7,154) At 31 December 34(a) 259,745 315,766 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 prices 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 prices during the year.
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