Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance Indofood Agri Resources Ltd. 128 Notes to the financial statements For the financial year ended 31 December 2025 23. Inventories Group 2025 2024 Rp million Rp million Balance sheet: Raw materials 1,264,111 1,964,823 Finished goods 1,646,994 1,575,610 Spare parts and factory supplies 584,592 452,362 Total inventories at the lower of cost and net realisable value 3,495,697 3,992,795 Included in the above inventories balance is the allowance for decline in market value and obsolescence of inventories with the following movement: Group 2025 2024 Rp million Rp million Balance at 1 January 87,356 105,865 Allowance charge for the year 78,981 51,907 Reversal of allowance (49,411) (61,596) Write-off – (8,820) At 31 December 116,926 87,356 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 2025 2024 Rp million Rp million Consolidated statement of comprehensive income: Inventories recognised as an expense in cost of sales, net 5 15,661,402 11,202,970 Inclusive of the following charges: - Allowance for decline in market value and obsolescence of inventories 78,981 51,907 - Reversal of decline in market value and obsolescence of inventories (49,411) (61,596) 5 29,570 (9,689) As at 31 December 2025, inventories are covered by insurance against losses from fire and other risks under a certain policy package with total coverage of Rp1,990.7 billion (2024: Rp1,990.6 billion), which in management’s opinion, is adequate to cover possible losses that may arise from such risks.
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