Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance Indofood Agri Resources Ltd. 106 Notes to the financial statements For the financial year ended 31 December 2025 14. Property, plant and equipment (cont’d) Asset held for sale On 21 December 2017, a subsidiary, Lonsum entered into a Sale and Purchase Agreement (“SPA”) with an entity under common control, PT ICBP for the sale of a parcel of its land with an area approximately 125 hectares in the Province of Banten, Sumatra, Indonesia. In December 2022, Lonsum executed part of the SPA with total transaction value of Rp35.8 billion for 8 parcels of land, covering 12 hectares by realising part of an advance paid by PT ICBP in 2018. On 26 June 2025, both parties entered into a Termination Agreement to end the SPA with effect from 30 June 2025. Pursuant to the Termination Agreement, the remaining balance of advances amounting to Rp4.2 billion was returned to PT ICBP. As of 30 June 2025, the parcel of land amounting to Rp37.8 billion was reclassified to land use rights under right-of-use assets in the balance sheet as it ceased to be classified as “Asset held for sale” in accordance with SFRS(I) 5. Assets fully depreciated but still in use As at 31 December 2025, the costs of the Group’s property, plant and equipment that have been fully depreciated but still being utilized amounted to Rp5,425.1 billion (2024: Rp4,854.4 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 financial years ended 31 December 2025 and 2024, the Group sold heavy equipment, transportation equipment and office equipment as follows: 2025 2024 Rp million Rp million Proceeds from disposal 11,101 12,973 Net carrying value (6,907) (8,381) Gain on disposal of property, plant and equipment 4,194 4,592 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 financial year ended 31 December 2025, the borrowing costs capitalised by certain subsidiaries to their immature bearer plants under cultivation, and building and machineries under constructions amounted to Rp7.5 billion (2024: Rp13.6 billion) based on capitalisation rates ranging from 6.34% to 8.99% (2024: 4.28% to 9.37%). Assets under insurance coverage As at 31 December 2025, property, plant and equipment are covered by insurance against losses from fire and other risks under a policy package with total coverage of Rp17,201.4 billion (2024: Rp16,611.9 billion).
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