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RIGHT OF USE ASSETS
12 Months Ended
Dec. 31, 2020
RIGHT OF USE ASSETS  
RIGHT OF USE ASSETS

14. RIGHT OF USE ASSETS

The Group leases several assets including building, transmission installation and equipments, power supply, vehicles, and other equipments used in its operations, which generally have lease term between 1 and 33 years.

The Group leases several pieces of land located throughout Indonesia with Building Use Rights ("Hak Guna Bangunan" or "HGB") for a period of 10-50 years which will expire between 2020 and 2070. Management believes that there will be no issue in obtaining the extension of the land rights when they expire.

The Group also has certain leases with lease terms of twelve months or less and low-value leases. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. There are no lease contracts with variable lease payments. Short-term lease expense as of 2019 and 2020 amounted to Rp5,294 billion and Rp3,612 billion, respectively. Low-value assets lease expense as of 2019 and 2020 amounted to Rp65 billion and Rp119 billion, respectively.

The carrying amounts of right of use assets recognized and the movement during the year:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Effect of

    

 

 

 

 

 

 

Reclassifications/

 

 

 

 

December 31, 2018

 

adoption of IFRS 16

 

January 1, 2019

    

Additions

    

Deductions

    

translations

    

December 31, 2019

At cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land rights

 

 —

 

4,131

 

4,131

 

1,546

 

 —

 

(6)

 

5,671

Buildings

 

 —

 

786

 

786

 

70

 

 —

 

(17)

 

839

Transmission installation and equipment

 

 —

 

17,335

 

17,335

 

732

 

(576)

 

(4)

 

17,487

Power supply

 

 —

 

398

 

398

 

316

 

 —

 

(125)

 

589

Vehicles

 

 —

 

646

 

646

 

188

 

(84)

 

(50)

 

700

Others

 

 —

 

 —

 

 —

 

40

 

(4)

 

(8)

 

28

Total

 

 —

 

23,296

 

23,296

 

2,892

 

(664)

 

(210)

 

25,314

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land rights

 

 —

 

 —

 

 —

 

(676)

 

 —

 

 —

 

(676)

Buildings

 

 —

 

 —

 

 —

 

(238)

 

 —

 

 1

 

(237)

Transmission installation and equipment

 

 —

 

 —

 

 —

 

(3,466)

 

137

 

 —

 

(3,329)

Power supply

 

 —

 

 —

 

 —

 

(86)

 

 —

 

17

 

(69)

Vehicles

 

 —

 

 —

 

 —

 

(194)

 

58

 

25

 

(111)

Others

 

 —

 

 —

 

 —

 

(28)

 

 3

 

26

 

 1

Total

 

 —

 

 —

 

 —

 

(4,688)

 

198

 

69

 

(4,421)

Net book value

 

 —

 

23,296

 

23,296

 

 

 

  

 

  

 

20,893

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

 

 

 

Reclassifications/

 

 

 

 

December 31, 2019

 

Additions

    

Deductions

    

translations

    

December 31, 2020

At cost:

 

 

 

 

 

 

 

 

 

 

Land rights

 

5,671

 

1,704

 

(630)

 

(10)

 

6,735

Buildings

 

839

 

126

 

(120)

 

21

 

866

Transmission installation and equipment

 

17,487

 

1,899

 

(1,183)

 

(85)

 

18,118

Power supply

 

589

 

97

 

(18)

 

 —

 

668

Vehicles

 

700

 

238

 

(230)

 

(103)

 

605

Others (each below Rp75 billion)

 

28

 

 1

 

(1)

 

66

 

94

Total

 

25,314

 

4,065

 

(2,182)

 

(111)

 

27,086

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

Land rights

 

(676)

 

(864)

 

212

 

 —

 

(1,328)

Buildings

 

(237)

 

(205)

 

177

 

(62)

 

(327)

Transmission installation and equipment

 

(3,329)

 

(3,586)

 

984

 

 —

 

(5,931)

Power supply

 

(69)

 

(194)

 

 9

 

 —

 

(254)

Vehicles

 

(111)

 

(162)

 

203

 

 1

 

(69)

Others (each below Rp75 billion)

 

 1

 

(75)

 

 1

 

 —

 

(73)

Total

 

(4,421)

 

(5,086)

 

1,586

 

(61)

 

(7,982)

Net book value

 

20,893

 

 

 

 

 

  

 

19,104

 

The carrying amounts of the lease liabilities and the movements are as follows:

 

 

 

 

 

 

    

2019

    

2020

 

 

 

 

 

Balance, January 1

 

18,983

 

17,217

Additions

 

1,904

 

4,308

Deductions

 

(4,735)

 

(6,676)

Accrued interest

 

1,065

 

28

Balance, December 31

 

17,217

 

14,877

The portion that matures within one year

 

(4,663)

 

(4,805)

Long term portion year

 

12,554

 

10,072

 

Maturity analysis of lease payments are as follows:

 

 

 

 

 

Years

    

2019

    

2020

2020

 

4,752

 

 —

2021

 

4,247

 

5,636

2022

 

3,529

 

3,814

2023

 

2,636

 

2,888

2024

 

1,639

 

1,864

2025

 

1,103

 

2,693

Thereafter

 

1,596

 

329

Total minimum lease payments

 

19,502

 

17,224

Interest

 

(3,350)

 

(2,375)

Net present value of minimum lease payments

 

16,152

 

14,849

Accrued interest

 

1,065

 

28

Total lease liabilities

 

17,217

 

14,877

Current maturities

 

(4,663)

 

(4,805)

Long-term portion

 

12,554

 

10,072