UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2013
Perusahaan Perseroan (Persero)
PT Telekomunikasi Indonesia, Tbk
(Exact name of Registrant as specified in its charter)
Telecommunications Indonesia
(A state-owned public limited liability Company)
(Translation of registrant’s name into English)
Jl. Japati No. 1 Bandung 40133, Indonesia
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F þ Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ¨ No þ
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ¨ No þ
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereunto duly authorized. |
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Perusahaan Perseroan (Persero) | |
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PT Telekomunikasi Indonesia, Tbk. | |
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(Registrant) | |
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Date |
July 22, 2013 |
By |
/s/ Honesti Basyir |
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(Signature) | |
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Honesti Basyir | |
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Director of Finance |
Perusahaan Perseroan (Persero)
PT Telekomunikasi Indonesia Tbk
and Subsidiaries
Consolidated financial statements
as of June 30, 2013 (unaudited)
and for six months period ended with comparative
figures as of December 31, 2012 (audited) and
for six months period ended June 30, 2012 (unaudited).
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED)
AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
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Page |
Consolidated Statements of Financial Position ……..………………………………………………… |
1-2 |
Consolidated Statements of Comprehensive Income………………………………………………… |
3 |
Consolidated Statements of Changes in Equity………………………….………………..………….. |
4-5 |
Consolidated Statements of Cash Flows………………………………………………………………. |
6 |
Notes to the Consolidated Financial Statements……………………………………………..……….. |
7-117 |
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF JUNE 30, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES
AS OF DECEMBER 31, 2012 (AUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
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Notes |
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June 30, 2013 |
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December 31,2012 |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
2c,2e,2u,3,37,44 |
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11,551 |
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13,118 |
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Other current financial assets |
2c,2e,2u,4,37,44 |
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696 |
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4,338 |
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Trade receivables - net of provision for impairment of receivables |
2g,2u,5,29,44 |
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- |
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- |
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Related parties |
2c,37 |
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1,131 |
|
701 |
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Third parties |
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5,483 |
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4,522 |
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Other receivables - net of provision for impairment of receivables |
2g,2u,44 |
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525 |
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186 |
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Inventories - net of provision for obsolescence |
2h,6,16,20,29 |
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634 |
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579 |
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Advances and prepaid expenses |
2c,2i,7,37 |
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3,091 |
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3,721 |
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Claims for tax refund |
2t,31 |
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423 |
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436 |
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Prepaid taxes |
2t,31 |
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488 |
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372 |
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Asset held for sale |
2j,8 |
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131 |
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- |
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Total Current Assets |
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24,153 |
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27,973 |
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NON-CURRENT ASSETS |
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Long-term investments |
2f,2u,9,44 |
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264 |
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275 |
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Property and equipment - net of accumulated depreciation |
2l,2m,10 16,19,20,39 |
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80,621 |
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77,047 |
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Prepaid pension benefit costs |
2s,34 |
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981 |
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1,032 |
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Advances and other non-current assets |
2c,2i,2l,2n,2u 11,37,41,44 |
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3,798 |
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3,510 |
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Intangible assets - net of accumulated amortization |
2d,2k,2n,12 |
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1,525 |
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1,443 |
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Deferred tax assets - net |
2t,31 |
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130 |
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89 |
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Total Non-current Assets |
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87,319 |
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83,396 |
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TOTAL ASSETS |
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111,472 |
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111,369 |
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The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF JUNE 30, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES
AS OF DECEMBER 31, 2012 (AUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
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Notes |
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June 30,2013 |
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December 31, 2012 |
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES |
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Trade payables |
2o,2r,2u,13,44 |
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Related parties |
2c,37 |
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1,242 |
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432 |
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Third parties |
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7,074 |
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6,848 |
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Other payables |
2u,44 |
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156 |
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176 |
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Taxes payables |
2t,31 |
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2,206 |
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1,844 |
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Accrued expenses |
2c,2r,2u,14,27,34,37,44 |
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5,622 |
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6,163 |
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Unearned income |
2r,15 |
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3,067 |
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2,729 |
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Advances from customers and suppliers |
2c,37 |
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295 |
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257 |
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Short-term bank loans |
2c,2p,2u,16,37,44 |
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257 |
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37 |
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Current maturities of long-term liabilities |
2c,2m,2p,2u,17,37,44 |
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5,404 |
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5,621 |
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Total Current Liabilities |
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25,323 |
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24,107 |
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NON-CURRENT LIABILITIES |
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Deferred tax liabilities - net |
2t,31 |
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3,338 |
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3,059 |
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Other liabilities |
2r |
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301 |
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334 |
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Long service awards provisions |
2s,35 |
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358 |
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347 |
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Post-retirement health care benefits provisions |
2c,2s,36,37 |
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686 |
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679 |
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Retirement benefits obligation and other post retirement benefits |
2c,2s,34,37 |
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2,513 |
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2,248 |
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Long-term liabilities - net of current maturities |
2u,17,44 |
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Obligations under finance leases |
2m,10 |
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2,754 |
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1,814 |
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Two-step loans |
2c,2p,18,37 |
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1,609 |
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1,791 |
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Bonds and notes |
2c,2p,19,37 |
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3,111 |
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3,229 |
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Bank loans |
2c,2p,20,37 |
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6,730 |
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6,783 |
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Total Non-current Liabilities |
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21,400 |
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20,284 |
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TOTAL LIABILITIES |
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46,723 |
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44,391 |
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EQUITY |
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Capital stock - Rp250 par value per Series A |
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Dwiwarna share and Series B share |
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Authorized - 1 Series A Dwiwarna share and 79,999,999,999 Series B shares |
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Issued and fully paid - 1 Series A Dwiwarna share and 20,159,999,279 Series B shares |
1c,22 |
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5,040 |
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5,040 |
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Additional paid-in capital |
2v,23 |
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1,281 |
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1,073 |
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Treasury stock |
2v,24 |
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(7,634 |
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(8,067 |
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Additional paid-in capital-treasury stock |
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- |
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- |
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Difference in value arising from restructuring transactions and other transactions between entities under common control |
2d,25 |
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478 |
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478 |
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Effect of change in equity of associated companies |
2f |
|
386 |
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386 |
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Unrealized holding gain from available-for-sale securities |
2u |
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43 |
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42 |
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Translation adjustment |
2f |
|
282 |
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271 |
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Difference due to acquisition of non-controlling interest in subsidiaries |
1d,2d |
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(508 |
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(508 |
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Other reserves |
1d |
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49 |
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49 |
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Retained earnings |
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Appropriated |
33 |
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15,337 |
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15,337 |
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Unappropriated |
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36,212 |
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37,440 |
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Total Equity Attributable to Owners of the Parent Company |
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50,966 |
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51,541 |
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Non-controlling interests |
2b,21 |
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13,783 |
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15,437 |
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TOTAL EQUITY |
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64,749 |
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66,978 |
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TOTAL LIABILITIES AND EQUITY |
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111,472 |
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111,369 |
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The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
SIX MONTHS PERIOD ENDED JUNE 30, 2013 (UNAUDITED) WITH
COMPARATIVE FIGURES FOR SIX MONTHS PERIOD ENDED
JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
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Notes |
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2013 |
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2012 |
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REVENUES |
2c,2r,26,37 |
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40,160 |
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36,720 |
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Operations, maintenance and telecommunication services expenses |
2c,2r,28,37 |
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(9,732 |
) |
(8,235 |
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Depreciation and amortization expenses |
2k,2l,2m,2r,10,11,12 |
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(6,940 |
) |
(6,967 |
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Personnel expenses |
2c,2r,2s,14,27,34,35, |
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36,37 |
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(4,605 |
) |
(4,165 |
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Interconnection expenses |
2c,2r,30,37 |
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(2,371 |
) |
(2,131 |
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General and administrative expenses |
2c,2g,2h,2r,2t,5,6, |
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29,37 |
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(1,638 |
) |
(1,447 |
) |
Marketing expenses |
2r |
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(1,339 |
) |
(1,460 |
) |
Gain (loss) on foreign exchange - net |
2q |
|
100 |
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(213 |
) |
Other income |
2r,10c |
|
339 |
|
379 |
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Other expenses |
2r,10c |
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(128 |
) |
(180 |
) |
OPERATING PROFIT |
|
|
13,846 |
|
12,301 |
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Finance income |
2c,37 |
|
413 |
|
271 |
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Finance costs |
2c,2r,37 |
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(696 |
) |
(565 |
) |
Share of loss of associated companies |
2f,9 |
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(6 |
) |
(3 |
) |
PROFIT BEFORE INCOME TAX |
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|
13,557 |
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12,004 |
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INCOME TAX (EXPENSE) BENEFIT |
2t,31 |
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Current |
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(3,187 |
) |
(3,230 |
) |
Deferred |
|
|
(237 |
) |
215 |
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(3,424 |
) |
(3,015 |
) |
PROFIT FOR THE YEAR |
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|
10,133 |
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8,989 |
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OTHER COMPREHENSIVE INCOME |
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Foreign currency translation |
1d,2b,2f |
|
11 |
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(0 |
) |
Change in fair value of available-for-sale financial assets |
2u |
|
1 |
|
(1 |
) |
Total Other Comprehensive Income - net |
|
|
12 |
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(1 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
|
|
10,145 |
|
8,988 |
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Profit for the year attributable to: |
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|
|
|
|
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Owners of the parent company |
2b,21 |
|
7,125 |
|
6,428 |
|
Non-controlling interests |
|
|
3,008 |
|
2,561 |
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|
|
|
10,133 |
|
8,989 |
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Total comprehensive income for the year attributable to: |
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|
|
|
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Owners of the parent company |
|
|
7,137 |
|
6,427 |
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Non-controlling interests |
2b,21 |
|
3,008 |
|
2,561 |
|
|
|
|
10,145 |
|
8,988 |
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BASIC AND DILUTED EARNINGS PER SHARE (in full amount) |
2x,32 |
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Net income per share |
|
|
372.08 |
|
333.97 |
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Net income per ADS (40 Series B shares per ADS) |
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|
14,883.20 |
|
13,358.80 |
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The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole.
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
SIX MONTHS PERIOD ENDED JUNE 30, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
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|
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Attributable to owners of the parent company |
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Descriptions |
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Notes |
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Capital stock |
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Additional paid-in capital |
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Treasury stock |
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Difference in value arising from restructuring transactions and other transactions between entities under common control |
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Effect of change in equity of associated companies |
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Unrealized holding gain on available for-sale securities |
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Translation adjustment |
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Difference due to acquisition of non- controlling interest in subsidiaries |
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Other reserves |
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Retained earnings |
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Total |
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Non- controlling interests |
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Total equity |
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Appro- priated |
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Unappro- priated |
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Balance, December 31, 2012 |
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5,040 |
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1,073 |
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(8,067 |
) |
478 |
|
386 |
|
42 |
|
271 |
|
(508) |
|
49 |
|
15,337 |
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37,440 |
|
51,541 |
|
15,437 |
|
66,978 |
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Additonal capital for association entities |
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|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
23 |
|
23 |
|
Cash dividends |
|
2w,33 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(8,353 |
) |
(8,353 |
) |
(4,685 |
) |
(13,038 |
) |
Treasury stock |
|
2t,23 |
|
- |
|
208 |
|
433 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
641 |
|
- |
|
641 |
|
Comprehensive income for the year |
|
1d,2b,2f, 2q,2s,9 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
1 |
|
11 |
|
- |
|
- |
|
- |
|
7,125 |
|
7,137 |
|
3,008 |
|
10,145 |
|
Balance, June 30, 2013 |
|
|
|
5,040 |
|
1,281 |
|
(7,634) |
|
478 |
|
386 |
|
43 |
|
282 |
|
(508 |
) |
49 |
|
15,337 |
|
36,212 |
|
50,966 |
|
13,783 |
|
69,749 |
|
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole.
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (continued)
SIX MONTHS PERIOD ENDED JUNE 30, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
|
|
|
|
Attributable to owners of the parent companyL |
|
|
|
| |||||||||||||||||||||
Descriptions |
|
Notes |
|
Capital stock |
|
Additional paid-in capital |
|
Treasury stock |
|
Difference in value arising from restructuring transactions and other transactions between entities under common control |
|
Effect of change in equity of associated companies |
|
- Unrealized holding gain available for-sale securities |
|
Translation adjustment |
|
Difference due to acquisition of non- controlling interest in subsidiaries |
|
Retained earnings |
|
Total |
|
Non- controlling interests |
|
Total equity |
| ||
Appro-priated |
|
Unappro-priated |
| ||||||||||||||||||||||||||
Balance, December 31, 2011 |
|
|
|
5,040 |
|
1,073 |
|
(6,323 |
) |
478 |
|
386 |
|
47 |
|
240 |
|
(485 |
) |
15,337 |
|
31,717 |
|
47,510 |
|
13,471 |
|
60,981 |
|
Acquisition of non-controlling interest in subsidiaries |
|
1d |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
9 |
|
9 |
|
Cash dividends |
|
2u,32 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(7,128 |
) |
(7,128 |
) |
(3,607 |
) |
(10,735 |
) |
Treasury stock acquired - at cost |
|
2t,23 |
|
- |
|
- |
|
(1,424 |
) |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(1,424 |
) |
- |
|
(1,424 |
) |
Comprehensive income for the year |
|
1d, 2b,2f, 2s,8 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(1 |
) |
(0 |
) |
- |
|
- |
|
6,428 |
|
6,427 |
|
2,561 |
|
8,988 |
|
Balance, June 30, 2012 |
|
|
|
5,040 |
|
1,073 |
|
(7,747 |
) |
478 |
|
386 |
|
46 |
|
240 |
|
(485 |
) |
15,337 |
|
31,017 |
|
45,385 |
|
12,434 |
|
57,819 |
|
The accompanying notes to the consolidated financial statements, form an integral part of these consolidated financial statements taken as a whole.
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS PERIOD ENDED JUNE 30, 2013 (UNAUDITED)
WITH COMPARATIVE FIGURES FOR SIX MONTHS PERIOD ENDED
JUNI 30,2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
|
Notes |
|
2013 |
|
2012 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
Cash receipts from: |
|
|
|
|
|
|
Customers |
|
|
36,625 |
|
34,143 |
|
Other operators |
|
|
2,064 |
|
1,545 |
|
Total cash receipts from revenues |
|
|
38,689 |
|
35,688 |
|
Interest income received |
|
|
426 |
|
273 |
|
Cash refunds to (advance from) customers |
|
|
11 |
|
33 |
|
Cash payments for expenses |
|
|
(14,897 |
) |
(11,705 |
) |
Cash payments to employees |
|
|
(5,407 |
) |
(4,442 |
) |
Payments for income taxes |
|
|
(3,731 |
) |
(2,534 |
) |
Payments for interest costs |
|
|
(703 |
) |
(532 |
) |
Net cash provided by operating activities |
|
|
14,388 |
|
16,781 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
Proceeds from time deposits and (purchase) of available-for-sale financial assets |
|
|
3,643 |
|
20 |
|
Proceeds from sale of property and equipment |
10 |
|
55 |
|
15 |
|
Increase in longterm investment |
|
|
17 |
|
- |
|
Proceeds from insurance claims |
10 |
|
- |
|
2 |
|
Purchases of available-for-sale financial assets and placement in time deposits |
4 |
|
- |
|
(8 |
) |
Acquisition of property and equipment |
10 |
|
(5,023 |
) |
(6,135 |
) |
Increase in advances and other non-current assets |
11 |
|
(745 |
) |
(4 |
) |
Acquisition of intangible assets |
12 |
|
(337 |
) |
(145 |
) |
Increase in advances for purchases of property and equipment |
11 |
|
(57 |
) |
(403 |
) |
Net cash provided by/(used in) investing activities |
|
|
(2,447 |
) |
(6,658 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
Proceeds from bank loans |
20 |
|
2,050 |
|
2,463 |
|
Proceeds from short-term bank loans |
16 |
|
265 |
|
462 |
|
Proceeds from promissory notes |
19 |
|
8 |
|
274 |
|
Proceeds from medium-term notes |
19 |
|
- |
|
10 |
|
Payments for treasury stock |
24 |
|
- |
|
(1,424 |
) |
Cash dividends paid to the Company’s stockholder |
|
|
(8,353 |
) |
(6,384 |
) |
Cash dividends paid to non-controlling interests of subsidiaries |
|
|
(4,685 |
) |
(3,607 |
) |
Repayment of two-step loans and bank loans |
18,20 |
|
(2,384 |
) |
(2,422 |
) |
Repayments of promissory notes |
19 |
|
(239 |
) |
(179 |
) |
Repayments of obligation under finance leases |
10 |
|
(214 |
) |
(90 |
) |
Repayments of short-term bank loans |
16 |
|
(45 |
) |
(278 |
) |
Repayments of medium-term notes |
19 |
|
(8 |
) |
(58 |
) |
Net cash used in financing activities |
|
|
(13,605 |
) |
(11,233 |
) |
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
(1,664) |
|
(1,110 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
|
97 |
|
58 |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |
3 |
|
13,118 |
|
9,634 |
|
CASH AND CASH EQUIVALENTS AT END OF YEAR |
3 |
|
11,551 |
|
8,582 |
|
The accompanying notes to the consolidated financial statements, form an integral part of these consolidated financial statements taken as a whole.
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
a. Establishment and general information
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (the “Company”) was originally part of “Post en Telegraafdienst”, which was established and operated commercially in 1884 under the framework of Decree No. 7 dated March 27, 1884 of the Governor General of the Dutch Indies and was published in State Gazette No. 52 dated April 3, 1884.
In 1991, the status of the Company was changed into a state-owned limited liability corporation (“Persero”) based on Government Regulation No. 25/1991. The ultimate parent of the Company is the Government of the Republic of Indonesia (the “Government”) (Notes 1c and 22).
The Company was established based on notarial deed No. 128 dated September 24, 1991 of Imas Fatimah, S.H.. The deed of establishment was approved by the Minister of Justice of the Republic of Indonesia in his Decision Letter No. C2-6870.HT.01.01.Th.1991 dated November 19, 1991, and was published in State Gazette No. 5 dated January 17, 1992, Supplement No. 210. The Articles of Association have been amended several times, the latest amendment of which was, among others, about the Company’s 5-for-1 stock split for share with par value of Rp250 will be split into Rp50 per share and Partnership and Community Development Programme (PKBL) was excluded from the Work Plan and Company Budgets, based on notarial deed No. 11 dated May 8, 2013 of Ashoya Ratam, S.H., MKn. The changes were accepted and approved by the Minister of Law and Human Rights of the Republic of Indonesia (“MoJHR”) through his Letter No. AHU-AH.01.10-22500 dated June 7, 2013.
In accordance with Article 3 of the Company’s Articles of Association, the scope of its activities is to provide telecommunication network and services, informatics and optimization of the Company’s resources in accordance with prevailing regulations. To achieve this objective, the Company is involved in the following activities:
a. Main business:
i. Planning, building, providing, developing, operating, marketing or selling, leasing and maintaining telecommunications and information networks in accordance with prevailing regulations.
ii. Planning, developing, providing, marketing or selling and improving telecommunications and information services in accordance with prevailing regulations.
b. Supporting business:
i. Providing payment transactions and money transferring services through telecommunications and information networks.
ii. Performing activities and other undertakings in connection with optimization of the Company's resources, which among others include the utilization of the Company's property and equipment and moving assets, information systems, education and training, and repairs and maintenance facilities.
The Company’s head office is located at Jalan Japati No. 1, Bandung, West Java.
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
a. Establishment and general information (continued)
The Company was granted several telecommunications licenses which are valid for an unlimited period of time as long as the Company complies with prevailing laws and telecommunications regulations and fulfills the obligations stated in those permits. For every license, an evaluation is performed annually and an overall evaluation is performed every 5 (five) years. The Company is obliged to submit reports of services annually to the Indonesian Directorate General of Post and Informatics (“DGPI”), which replaced the previous Indonesian Directorate General of Post and Telecommunications (“DGPT”). The reports comprise information such as network development progress, service quality standard achievement, total customer, license payment and universal service contribution, while for internet telephone services for public purpose (“ITKP”), there is additional information required such as operational performance, customer segmentation, traffic, and gross revenue.
Details of these licenses are as follows:
License |
|
License No. |
|
Type of services |
|
Grant date/latest renewal date |
|
License to operate local fixed line and basic telephone services network |
|
381/KEP/ M.KOMINFO/ 10/2010 |
|
Local fixed line and basic telephone services network |
|
October 28, 2010 |
|
License to operatefixed domestic long distance and basic telephone services network |
|
382/KEP/ M.KOMINFO/ 10/2010 |
|
Fixed domestic long distance and basic telephone services network |
|
October 28, 2010 |
|
License to operate fixed international and basic telephone services network |
|
383/KEP/ M.KOMINFO/ 10/2010 |
|
Fixed international and basic telephone services network |
|
October 28, 2010 |
|
License to operate fixed closed network |
|
398/KEP/ M.KOMINFO/ 11/2010 |
|
Fixed closed network |
|
November 12, 2010 |
|
License to operate internet telephone services for public purpose |
|
384/KEP/DJPT/ M.KOMINFO/ 11/2010 |
|
ITKP |
|
November 29, 2010 |
|
License to operate as internet service provider |
|
83/KEP/DJPPI/ KOMINFO/ 4/2011 |
|
Internet service provider |
|
April 7, 2011 |
|
License to operate data communication system services |
|
169/KEP/DJPPI/ KOMINFO/ 6/2011 |
|
Data communication system services |
|
June 6, 2011 |
|
License to operate packet switched based local fixed line network |
|
331/KEP/ M.KOMINFO/ 07/2011 |
|
Packet switched based local fixed line network |
|
July 27, 2011 |
|
8
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
b. Company’s Board of Commissioners, Board of Directors, Audit Committee, Corporate Secretary and employees
1. Boards of Commissioners and Directors
Based on resolutions made at (i) the Extraordinary General Meeting (“EGM”) of Stockholders of the Company dated December 17, 2010 as covered by notarial deed No. 33 of Dr. A. Partomuan Pohan, S.H., LLM., (ii) the Annual General Meeting (“AGM”) of Stockholders of the Company dated May 11, 2012 as covered by notarial deed No. 14 of Ashoya Ratam, S.H., MKn. and (iii) The AGM of Stockholders of the Company dated May 8, 2013 as covered by notarial deed No. 11 of Ashoya Ratam, S.H., MKn., the composition of the Company’s Boards of Commissioners and Directors as of June 30, 2013 and December 31, 2012, respectively, was as follows:
|
|
June 30, 2013* |
|
December 31, 2012 |
|
President Commissioner |
|
Jusman Syafii Djamal |
|
Jusman Syafii Djamal |
|
Commissioner |
|
Parikesit Suprapto |
|
Parikesit Suprapto |
|
Commissioner |
|
Hadiyanto |
|
Hadiyanto |
|
Commissioner |
|
Gatot Trihargo** |
|
- |
|
Independent Commissioner |
|
Virano Gazi Nasution |
|
Virano Gazi Nasution |
|
Independent Commissioner |
|
Johnny Swandi Sjam |
|
Johnny Swandi Sjam |
|
President Director |
|
Arief Yahya |
|
Arief Yahya |
|
Director of Finance |
|
Honesti Basyir |
|
Honesti Basyir |
|
Director of Network, Information Technology and Solution |
|
Rizkan Chandra |
|
Rizkan Chandra |
|
Director of Enterprise and Business Service |
|
Muhamad Awaluddin |
|
Muhamad Awaluddin |
|
Director of Consumer Services |
|
Sukardi Silalahi |
|
Sukardi Silalahi |
|
Director of Wholesale and International Services |
|
Ririek Adriansyah |
|
Ririek Adriansyah |
|
Director of Innovation and Strategic Portofolio |
|
Indra Utoyo |
|
Indra Utoyo |
|
Director of Human Capital Management |
|
Priyantono Rudito |
|
Priyantono Rudito |
|
|
|
|
|
|
|
* The change of Director’s title is based on Director’s Regulation No.202.11/r.00/HK.200/COP-B0400000/2013 dated June 25, 2013 | |||||
** Appointed in AGM of stockholders of the Company April 19, 2013 |
|
2. Audit Committee and Corporate Secretary
The composition of the Company’s Audit Committee and Corporate Secretary as of June 30, 2013 and December 31, 2012, respectively, were as follows:
|
|
June 30, 2013 |
|
December 31, 2012 |
|
Chair |
|
Johnny Swandi Sjam |
|
Johnny Swandi Sjam |
|
Secretary |
|
Salam |
|
Salam |
|
Member |
|
Parikesit Suprapto |
|
Parikesit Suprapto |
|
Member |
|
Agus Yulianto |
|
Agus Yulianto |
|
Member |
|
Sahat Pardede |
|
Sahat Pardede |
|
Member |
|
Virano Gazi Nasution |
|
Virano Gazi Nasution |
|
Corporate Secretary |
|
Honesti Basyir* |
|
Agus Murdiyatno |
|
* Acting 1. GENERAL (continued)
9
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
b. Company’s Board of Commissioners, Boards of Directors, Audit Committee, Corporate Secretary and employees (continued)
3. Employees
As of June 30, 2013 and December 31, 2012, the Company and subsidiaries had 25,088 employees and 25,683 employees (unaudited), respectively.
c. Public offering of securities of the Company
The Company’s shares prior to its Initial Public Offering (“IPO”) totalled 8,400,000,000, consisting of 8,399,999,999 Series B shares and 1 Series A Dwiwarna share, and were 100%-owned by the Government of the Republic of Indonesia (the “Government”). On November 14, 1995, 933,333,000 new Series B shares and 233,334,000 Series B shares owned by the Government were offered to public through IPO and listed on the Indonesia Stock Exchange (“IDX”) (previously the Jakarta Stock Exchange and the Surabaya Stock Exchange) and 700,000,000 Series B shares owned by the Government were offered to the public and listed on the New York Stock Exchange (“NYSE”) and the London Stock Exchange (“LSE”), in the form of American Depositary Shares (“ADS”). There are 35,000,000 ADS and each ADS represents 20 Series B shares at that time.
In December 1996, the Government had a block sale of its 388,000,000 Series B shares, and in 1997, had distributed 2,670,300 Series B shares as incentive to the Company’s stockholders who did not sell their shares within one year from the date of the IPO. In May 1999, the Government further sold 898,000,000 Series B shares.
To comply with Law No. 1/1995 on Limited Liability Companies, at the the Annual General Meeting (“AGM”) of Stockholders of the Company on April 16, 1999, the Company’s stockholders resolved to increase the Company’s issued share capital by distribution of 746,666,640 bonus shares through the capitalization of certain additional paid-in capital, which were distributed to the Company’s stockholders in August 1999. On August 16, 2007, Law No. 1/1995 on Limited Liability Companies was amended by the issuance of Law No. 40/2007 on Limited Liability Companies which became effective at the same date. Law No. 40/2007 has no effect on the public offering of shares of the Company. The Company has complied with Law No. 40/2007.
In December 2001, the Government had another block sale of 1,200,000,000 shares or 11.9% of the total outstanding Series B shares. In July 2002, the Government sold a further 312,000,000 shares or 3.1% of the total outstanding Series B shares.
At the AGM of Stockholders of the Company held on July 30, 2004, the minutes of which are covered by notarial deed No. 26 of A. Partomuan Pohan, S.H., LLM., the Company’s stockholders approved the Company’s 2-for-1 stock split for Series A Dwiwarna and Series B. Series A Dwiwarna share with par value of Rp500 was split into 1 Series A Dwiwarna share with par value of Rp250 per share and 1 Series B share with par value of Rp250 per share. The stock split resulted in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna share and 39,999,999,999 Series B shares to 1 Series A Dwiwarna share and 79,999,999,999 Series B shares, and issued capital stock from 1 Series A Dwiwarna share and 10,079,999,639 Series B shares to 1 Series A Dwiwarna share and 20,159,999,279 Series B shares. After the stock split, each ADS represented 40 Series B shares.
10
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
c. Public offering of securities of the Company (continued)
During the EGM of Stockholders of the Company on December 21, 2005, AGM of Stockholders of the Company on June 29, 2007, the AGM of Stockholders of the Company on June 20, 2008, and AGM of Stockholders of the Company on May 19, 2011, the Company’s stockholders approved the phase I, II, III and IV plan, respectively, to repurchase the Company’s issued Series B shares (Note 24).
On April 19, 2013, the AGM of Stockholders of the Company dated April 19, 2013 as covered by notarial resume no. 204 of Ashoya Ratam, S.H., MKn., the stockholders approved the changes to the Company’s plan for use of the treasury stock as a result of the Share Buyback. (Note 24).
As of June 30, 2013, all of the Company’s Series B shares were listed on the IDX and 48,470,603 ADS shares were listed on the NYSE and LSE (Note 22).
As of June 30, 2013, the Company’s outstanding bonds which were the second Rupiah bonds and issued on June 25, 2010 with a nominal amount of Rp1,005 billion for a five-year period and Rp1,995 billion for a ten-year period for Series A and Series B, respectively, were listed on the IDX (Note 19a).
d. Subsidiaries
As of June 30, 2013 and December 31, 2012, the Company has consolidated the following directly or indirectly owned subsidiaries (Notes 2b and 2d):
(i) Direct subsidiaries:
Subsidiary/place of incorporation |
|
Nature of business/ date of incorporation or acquisition by the Company |
|
Date of commercial operation |
|
Percentage of ownership interest |
|
Total assets before elimination |
| ||||
|
|
|
June 30, 2013 |
|
December 31, 2012 |
|
June 30, 2013 |
|
December 31,2012 |
| |||
PT Telekomunikasi Selular (“Telkomsel”), Jakarta, Indonesia r |
|
Telecommunication - provides telecommunication facilities and mobile cellular services using Global System for Mobile Communication (“GSM”) technology/ May 26, 1995 |
|
1995 |
|
65 |
|
65 |
|
60,200 |
|
63,576 |
|
PT Dayamitra Telekomunikasi (“Dayamitra”), Jakarta, Indonesia |
|
Telecommunication/ May 17, 2001 |
|
1995 |
|
100 |
|
100 |
|
6,692 |
|
4,931 |
|
PT Multimedia Nusantara (“Metra”), Jakarta, Indonesia |
|
Multimedia and line telecommunication services/May 9, 2003 |
|
1998 |
|
100 |
|
100 |
|
4,203 |
|
3,395 |
|
PT Telekomunikasi Indonesia International (“TII”), Jakarta, Indonesia |
|
Telecommunication/ July 31, 2003 |
|
1995 |
|
100 |
|
100 |
|
2,972 |
|
2,440 |
|
PT Pramindo Ikat Nusantara (“Pramindo”), Jakarta, Indonesia |
|
Telecommunication construction and services/ August 15, 2002 |
|
1995 |
|
100 |
|
100 |
|
1,291 |
|
1,202 |
|
11
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(i) Direct subsidiaries: (continued)
Subsidiary/place of incorporation |
|
Nature of business/date of incorporation or acquisition by the Company |
|
Date of commercial operation |
|
Percentage of ownership interest |
|
Total assets before elimination |
| ||||
|
|
|
June 30, 2013 |
|
December 31, 2012 |
|
June 30, 2013 |
|
December 31, 2012 |
| |||
PT Graha Sarana Duta (“GSD”), Jakarta, Indonesia |
|
Leasing of offices and providing building management and maintenance services, civil consultant and developer/ April 25, 2001 |
|
1982 |
|
99.99 |
|
99.99 |
|
1,038 |
|
622 |
|
PT Indonusa Telemedia (“Indonusa”), Jakarta, Indonesia |
|
Pay television and content services/ May 7, 1997 |
|
1997 |
|
100 (including through 0.46% ownership by Metra |
|
100 (including through 0.46% ownership by Metra) |
|
718 |
|
771 |
|
PT Telkom Akses (“Telkom Akses”), Jakarta, Indonesia |
|
Construction service and trade in the the field of telecommunication/ November 26, 2012 |
|
2013 |
|
100 |
|
100 |
|
111 |
|
- |
|
PT Napsindo Primatel Internasional (“Napsindo”), Jakarta, Indonesia |
|
Telecommunication - provides Network Access Point (NAP), Voice Over Data (VOD) and other related services/ December 29, 1998 |
|
1999; ceased operation on January 13, 2006 |
|
60 |
|
60 |
|
5 |
|
5 |
|
(ii) Indirect subsidiaries:
Subsidiary/place of incorporation |
|
Nature of business/ date of incorporation or acquisition by the Company |
|
Date of commercial operation |
|
Percentage of ownership interest |
|
Total assets before elimination |
| ||||
|
|
|
June 30, 2013 |
|
December 31, 2012 |
|
June 30, 2013 |
|
December 31, 2012 |
| |||
PT Sigma Cipta Caraka (“Sigma”), Tangerang,Indonesia |
|
Information technology service – system implementation and integration service, outsourcing and software license maintenance/ May 1, 1987 |
|
1988 |
|
100 |
|
100 |
|
1,420 |
|
1,014 |
|
PT Infomedia Nusantara (“Infomedia”), Jakarta, Indonesia |
|
Data and information service – provides telecommunication information services and other information services in the form of print and electronic media and call center services/ September 22,1999 |
|
1984 |
|
100 |
|
100 |
|
1,179 |
|
985 |
|
Telekomunikasi Indonesia International Pte.Ltd., Singapore |
|
Telecommunication/ December 6, 2007 |
|
2008 |
|
100 |
|
100 |
|
569 |
|
522 |
|
12
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(ii) Indirect subsidiaries: (continued)
Subsidiary/place of incorporation |
|
Nature of business/ date of incorporation or acquisition by the Company |
|
Date of commercial operation |
|
Percentage of ownership interest |
|
Total assets before elimination |
| ||||
|
|
|
June 30, 2013 |
|
December 31, 2012 |
|
June 30, 2013 |
|
December 31, 2012 |
| |||
Telekomunikasi Indonesia International (TL) S.A., Timor Leste |
|
Telecommunication/ September 11, 2012 |
|
2012 |
|
100 |
|
100 |
|
391 |
|
149 |
|
PT Telkom Landmark Tower (“TLT”), Jakarta, Indonesia |
|
Service for property, development and management/ February 1, 2012 |
|
2012 |
|
55 |
|
55 |
|
317 |
|
150 |
|
PT Finnet Indonesia (“Finnet”), Jakarta, Indonesia |
|
Banking data and communication/ October 31, 2005 |
|
2006 |
|
60 |
|
60 |
|
124 |
|
112 |
|
PT Administrasi Medika (“Ad Medika”), Jakarta, Indonesia |
|
Health insurance administration services/ February 25, 2010 |
|
2010 |
|
75 |
|
75 |
|
123 |
|
95 |
|
Telekomunikasi Indonesia International Ltd., Hong Kong |
|
Telecommunication/ December 8, 2010 |
|
2010 |
|
100 |
|
100 |
|
116 |
|
95 |
|
PT Metra Plasa (“Metra Plasa”), Jakarta, Indonesia |
|
Website services/ April 9, 2012 |
|
2012 |
|
60 |
|
60 |
|
89 |
|
95 |
|
PT Metra Digital Media (“MDM”), Jakarta, Indonesia |
|
Telecommunication information services/ January 8, 2013 |
|
2013 |
|
100 |
|
- |
|
87 |
|
- |
|
PT Infomedia Solusi Humanika (“ISH”), Jakarta, Indonesia |
|
Established to engage in the services of distribution and supply of labor/ October 24, 2012 |
|
2012 |
|
100 |
|
100 |
|
49 |
|
0 |
|
PT Metra-Net (“Metra-Net”), Jakarta, Indonesia |
|
Multimedia portal service/April 17, 2009 |
|
2009 |
|
100 |
|
100 |
|
33 |
|
33 |
|
PT Graha Yasa Selaras (“GYS”) Jakarta, Indonesia |
|
Tourism service/ April 27, 2012 |
|
2013 |
|
51 |
|
51 |
|
12 |
|
7 |
|
PT Satelit Multimedia Indonesia (“SMI”) Jakarta, Indonesia |
|
Commerce and providing network services, telecommunication satellite, and multimedia services/ March 25, 2013 |
|
2013 |
|
100 |
|
- |
|
6 |
|
7 |
|
Telkomsel Finance B.V., (“TFBV”), Amsterdam,The Netherlands |
|
Finance - established in 2005 for the purpose of borrowing, lending and raising funds including issuance of bonds, promissory notes or debts/ February 7, 2005 |
|
2005 |
|
65 |
|
65 |
|
8 |
|
8 |
|
PT Metra Media (“MM”) Jakarta, Indonesia |
|
Trade service, construction reservansir, services, etc. January 8, 2013 |
|
2013 |
|
100 |
|
- |
|
|
3 |
- |
|
13
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(ii) Indirect subsidiaries: (continued)
Subsidiary/place of incorporation |
|
Nature of business/ date of incorporation or acquisition by the Company |
|
Date of commercial operation |
|
Percentage of ownership interest |
|
Total assets before elimination |
| ||||
|
|
|
June 30, 2013 |
|
December 31, 2012 |
|
June 30, 2013 |
|
December 31, 2012 |
| |||
Telekomunikasi Indonesia Internasional Pty Ltd. Australia |
|
Telecomunication/ January 9, 2013 |
|
2013 |
|
100 |
|
- |
|
2 |
|
- |
|
Aria West International Finance B.V. (“AWI BV”), The Netherlands |
|
Established to engage in rendering services in the field of trade and finance services/ June 3, 1996 |
|
1996; ceased operation on July 31, 2003 |
|
100 |
|
100 |
|
0 |
|
0 |
|
Telekomunikasi Selular Finance Limited (“TSFL”), Mauritius |
|
Finance - established to raise funds for the development of Telkomsel’s business through the issuance of debenture stock, bonds, mortgages or any other securities/ April 22, 2002 |
|
2002 |
|
65 |
|
|
65 |
- |
|
- |
|
(a) Metra
On April 2, 2012, based on notarial deed No. 03 dated April 2, 2012 of Utiek R. Abdurachman, S.H., MLI., MKn., Metra established PT Metra Plasa (“Metra Plasa”) with authorized capital of Rp50 million with issued and fully paid capital of Rp12.5 million.
On July 20, 2012, based on the Circular Resolution of Stockholders of Metra Plasa, as covered by notarial deed No. 1 of Utiek R. Abdurachman, S.H., MLI., MKn., dated October 1, 2012, Metra Plasa’s stockholders agreed on the following:
i. to increase Metra Plasa’s authorized capital from Rp50 million to Rp60 billion consisting of 6,000,000 shares with nominal value of Rp10,000 (full amount) per share;
ii. to increase its issued and fully paid capital from Rp12.5 million owned 100% by Metra to Rp15.25 billion by issuing 1,523,750 additional shares with nominal value of Rp10,000 (full amount) per share;
iii. from the issued new shares, totalling 913,750 shares with total nominal value of Rp9 billion were subcribed by Metra while 610,000 shares with total nominal value of Rp6 billion were subcribed by eBay International AG at a premium totaling Rp78 billion. Metra’s ownership was diluted to 60% with the remaining 40% owned by eBay International AG.
On September 21, 2012, based on notarial deed No. 11 dated September 21, 2012 of N.M. Dipo Nusantara Pua Upa, S.H., MKn. which was approved by the MoJHR in his Letter No. AHU-50211.AH.01.01/2012 dated September 26, 2012, Metra established a company with Pelindo II, a related party of the Company, called PT Integrasi Logistik Cipta Solusi (“ILCS”) with 49% ownership. ILCS will engage in providing E-trade logistic services and other related services.
On January 8, 2013, based on notarial deed No. 02 dated January 8, 2013 of Utiek R. Abdurachman, S.H., MLI., MKn., which was approved by the MoJHR through its Letter No. AHU-03276.AH.01.01/2013 dated January 29, 2013, Metra established a subsidiary, PT Metra Media (“MM”), with 99.83% ownership. MM will engage in providing trade, construction, advertising and other services.
14
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(a) Metra (continued)
On January 8, 2013, based on notarial deed No. 03 dated January 8, 2013 of Utiek R. Abdurachman, SH., MLI., MKn., which was approved by the MoJHR through its Letter No. AHU-03261.AH.01.01/2013 dated January 29, 2013, Metra established a subsidiary, PT Metra TV (“Metra TV”), with 99.83% ownership. Metra TV will engage in providing subscription broadcasting services.
On January 22, 2013, based on notarial deed No. 28 dated January 22, 2013 of N.M. Dipo Nusantara Pua Upa, S.H., MKn., which was approved by the MoJHR through its Letter No. AHU-03084.AH.01.01/2013 dated January 28, 2013, Metra established a subsidiary, PT Metra Digital Media (“MDM”), with 99.83% ownership. MDM will engage in providing telecommunication information and other services.
On March 25, 2013, based on notarial deed No. 38 dated March 25, 2013 of N.M. Dipo Nusantara Pua Upa, S.H., MKn. which was approved by the MoJHR in his Letter No. AHU-20566.AH.01.01 /2013 dated April 17, 2013, Metra established PT Satelit Multimedia Indonesia (“SMI”) with 99,99% ownership. SMI will engage in commerce and providing network services, telecommunication, satellite, and multimedia devices.
(b) TII
Based on the Circular Resolution of Stockholders of TII dated September 11, 2012, as covered by notarial deed No. 04 dated October 4, 2012 of Siti Safarijah, S.H., TII’s stockholders agreed to establish a subsidiary in Timor Leste named Telekomunikasi Indonesia International (“TL”) S.A. that is engaged in providing telecommunication services.
On January 9, 2013, based on the Circular Resolution of the Stockholders of TII dated January 9, 2013, as covered by notarial deed No. 04 dated February 6, 2013 of Siti Safarijah, S.H., TII’s stockholders agreed to establish a subsidiary, Telekomunikasi Indonesia Internasional Australia Pty. Ltd. (“Telkom Australia”). Telkom Australia will engage in providing telecommunication services and IT-based services.
On May 13, 2013, TII through Telekomunikasi Indonesia International (Hong Kong) Ltd. established a subsidiary in Macau, (“Telkom Macau”) Ltd. Telkom Macau will engage in providing telecommunication services.
On June 3, 2013, TII through Telekomunikasi Indonesia International (Hong Kong) Ltd. established a subsidiary in Taiwan, (“Telkom Taiwan”) Ltd. Telkom Taiwan will engage in providing telecommunication services.
(c) GSD
Based on notarial deed No. 71 of Kartono, S.H. dated December 27, 2011 which was approved by the MoJHR through Decision Letter No. AHU-05281.AH.01.01/2012 dated February 1, 2012, GSD established a subsidiary PT Telkom Landmark Tower (“TLT”), with Yayasan Kesehatan (“Yakes”), a related party of the Company, with 55% ownership. TLT is engaged in property development and management.
Based on notarial deed No. 48 dated February 7, 2012 of Sri Ahyani, S.H. which was approved by the MoJHR in his Letter No. AHU-22272.AH.01.01/2012 dated April 27, 2012, GSD established a subsidiary PT Graha Yasa Selaras (“GYS”), with Yakes, a related party of the Company, with 51% ownership. GYS is engaged in tourism business.
15
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(d) Telkom Akses
On November 26, 2012, based on notarial deed No. 20 dated November 26, 2012 of Siti Safarijah, S.H. which was approved by the MoJHR in his Letter No. AHU-60691.AH.01.01/2012 dated November 28, 2012, the Company established a subsidiary, PT Telkom Akses (“Telkom Akses”), with 100% ownership. Telkom Akses will engage in providing construction service and trade in the field of telecommunication.
(e) Sigma
On June 29, 2012, based on notarial deed No. 3 of Utiek R. Abdurachman, S.H., MLI, MKn. dated August 13, 2012, Sigma entered into a Sales Purchase Agreement to purchase 150,000 of PT Sigma Solusi Integrasi (“SSI”)’s shares or the equivalent of 30% of SSI’s total ownership, with a transaction value of Rp26 billion from Marina Budiman, a non-controlling interest. On July 19, 2012, Sigma settled the transaction. The difference between acquisition cost and the carrying amount of the interests acquired amounting Rp22 billion is recorded as “Difference due to acquisition of non-controlling interest in subsidiaries” in the equity account of the consolidated statements of financial positions.
On August 15, 2012, based on notarial deed of Ny. Bomantari Julianto, S.H. dated August 15, 2012, Sigma entered into a Conditional Sales Purchase Agreement with PT Bina Data Mandiri (“BDM”) to purchase a Data Center Business, with a transaction value of Rp230 billion from BDM. Based on closing agreement dated November 30, 2012, the identifiable assets arising from the acquisition comprised of land, buildings, machine and equipment with total fair value amounting to Rp150 billion and intangible assets included customer contracts and backlog with fair value amounting to Rp3 billion. The acquisition result in goodwill amounting to Rp77 billion.
On September 17, 2012, based on notarial deed No. 10 of Utiek R. Abdurachman, SH., MLI., MKn. dated September 17, 2012, Sigma’s stockholders agreed to liquidate its subsidiary called PT Sigma Karya Sempurna (“SKS”), effective from September 17, 2012. The liquidation constitute as a process of internal restructuring of Sigma Group’s business. As of the issuance date of the consolidated financial statements, the District Court’s decision of the liquidation request is still in process.
On January 17, 2013, Sigma signed a share sale and transfer and loan assignment agreement with Landeskreditbank Baden-Wuttemberg-Forderbank (“L-Bank”), and Step Stuttgarter Engineering Park Gmbh. (“STEP”) as PT German Center Indonesia’s (“GCI”) stockholders. Based on that agreement, Sigma agreed to buy all the shares of GCI owned by L-Bank and STEP and take over L-Bank’s stockholders’ loan at a purchasing price of US$17.8 million (equivalent to Rp170 billion). The closing of this transaction held on April 30, 2013.
(f) Infomedia
On October 24, 2012, based on notarial deed No. 15 of Zulkifli Harahap, S.H. dated October 24, 2012 which was approved by the MoJHR through Decision Letter No. AHU-55715.AH.01.01/2012 dated October 30, 2012, Infomedia established a subsidiary called PT Infomedia Solusi Humanika (“ISH”) with 100% ownership. ISH will engage in the services for distribution and supply of labor.
16
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(f) Infomedia (continued)
On December 17, 2012, based on notarial deed No. 231 of M. Kholid Artha, SH. dated December 17, 2012, Infomedia purchased 1,778 and 1,777, shares of Balebat, a subsidiary of Infomedia, or the equivalent of 15.73% and 15.73%, respectively, of Balebat’s total ownership, with a transaction value of Rp4.4 billion and Rp4.4 billion, respectively, from Zikra Lukman and Siti Chadijah, non-controlling interests. The difference between acquisition cost and the carrying amount of the interests acquired amounting to Rp1 billion is recorded as “Difference due to acquisition of non-controlling interest in subsidiaries” in the equity account of the consolidated statements of financial position.
(g) Indonusa
On June 4 2013, the Company signed Conditional Sale and Purchase of Shares Agreement (“CSPA”) with PT Trans Corpora and PT Trans Media Corpora to sell 80% of share-ownership in Indonusa. The closing of transaction will be executed no later than 93 days after the agreement date, or such other date as may be agreed in writing by the parties.
e. Authorization of the consolidated financial statements
The consolidated financial statements were prepared and approved to be issued by the Board of Directors on July 19, 2013.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of the Company and subsidiaries have been prepared in accordance with Indonesian Financial Accounting Standards (“Pernyataan Standar Akuntansi Keuangan” or “PSAK”) and Regulation No. VIII.G.7 of the Capital Market and Financial Institution Supervisory Agency (“Bapepam-LK”) regarding the Presentations and Disclosures of Financial Statements of Issuers or Public Companies, enclosed in the decision letter KEP- 347/BL/2012.
a. Basis of preparation of financial statements
The consolidated financial statements, except for the consolidated statements of cash flows, are prepared on the accrual basis. The measurement basis used is historical cost, except for certain accounts which are measured using the basis mentioned in the relevant notes herein.
The consolidated statements of cash flows are prepared using the direct method and present the changes in cash and cash equivalents from operating, investing and financing activities.
Figures in the consolidated financial statements are presented and rounded to billions of Indonesian Rupiah (“Rp”), unless otherwise stated.
Changes to the statements of financial accounting standards (PSAKs) and interpretations of statements of financial accounting standards (“Interpretasi Standar Akuntansi Keuangan” or “ISAKs”)
On January 1, 2013, the Company and subsidiaries adopted new and revised PSAKs and ISAKs which were effective in 2013. Changes to the Company and subsidiaries’ accounting policies have been made as required in accordance with the transitional provisions in the respective standards and interpretations.
17
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
a. Basis of preparation of financial statements (continued)
The adoption of these new/revised standards and interpretations had no material effect to the consolidated financial statements’ disclosure and presentation:
· PSAK 38, “Entities Under Common Control Business Combination”
· PSAK 60 (Revised 2010), “Financial Instruments: Disclosures”.
b. Principles of consolidation
The consolidated financial statements include the assets and liabilities of the Company and subsidiaries in which the Company, directly or indirectly has ownership of more than half of the voting power and has the ability to govern the financial and operating policies of the entity unless, in exceptional circumstances, it can be clearly demonstrated that such ownership does not constitute control, or the Company has the ability to control the entity, even though the ownership is less than or equal to half of the voting power. Subsidiaries are consolidated from the date on which effective control is obtained and are no longer consolidated from the date control ceases.
Non-controlling interest represents the portion of the profit and loss and net assets of the subsidiaries not attributable, directly or indirectly, to the Company. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests proportionally in accordance with its ownership in the subsidiaries. Non-controlling interests are presented under the equity section in the consolidated statement of financial position, separately from the owners of the Company’s equity. In the consolidated statement of compherensive income, total profit or loss and total comprehensive income that can be attributed to the owners of the Company and to the non-controlling interests are presented separately, and not presented as income or expense.
Intercompany balances and transactions have been eliminated in the consolidated financial statements.
c. Transactions with related parties
The Company and subsidiaries have transactions with related parties. The definition of related parties used is in accordance with the Bapepam-LK’s Regulation No. VIII.G.7 regarding the Presentations and Disclosures of Financial Statements of Issuers or Public companies, enclosed in the decision letter No. KEP-347/BL/2012. The party which is considered as a related party is a person or entity that is related to the entity that is preparing its financial statements.
Under Bapepam-LK’s Regulation No. VIII.G.7 regarding the Presentations and Disclosures of Financial Statements of Issuers or Public companies, enclosed in the decision letter No. KEP-347/BL/2012, a government-related entity is an entity that is controlled, jointly controlled or significantly influenced by a government. Government in this context is the Minister of Finance or the Local Government, as the shareholder of the entity. Previously, the Company and subsidiaries applied the definition of related parties under PSAK 7 “Related Parties”.
18
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
c. Transactions with related parties (continued)
Key management personnel are identified as the persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of the Company and subsidiaries. The related-party status extends to the key management of the subsidiaries to the extent they direct the operations of subsidiaries with minimal involvement from the Company’s management.
d. Business combinations
Business combination is accounted for using the acquisition method. The consideration transferred is measured at fair value, which is the excess of the fair values assets transferred, liabilities incurred or assumed and the equity instruments issued in exchange for control of the acquiree. Acquisition related costs are expensed as incurred. The acquiree’s identifiable assets and liabilities are recognized at their fair values at the acquisition date.
Goodwill arising on acquisition is recognized as an asset and measured at cost representing the excess of the aggregate of the consideration transferred and non-controlling interests over the acquiree’s net identifiable assets acquired and liabilities assumed. For each business combination, non-controlling interest is measured at fair value or at the proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction by transaction basis.
When the determination of consideration from a business combination includes contingent consideration, it is measured at its acquisition-date fair value. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value where the changes in such fair value is recognized in profit or loss or when the adjustments are recorded outside the measurement period. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments made against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the measurement period, which cannot exceed one year from the acquisition date, about facts and circumstances that existed at the acquisition date.
For the purpose of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows, known as cash-generating unit. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of the asset in the unit. Impairment losses recognized over goodwill are not able to be reversed in the subsequent period.
The acquisition of entities under common control is accounted for using book value, in a manner similar to that of pooling of interests accounting (carry over basis). Any difference between the consideration paid or received and the related historical carrying amount of the equity acquired interest after considering income tax effects, is recognized directly in equity and reported as “Addition paid in capital” in the equity section of the consolidated statement of financial position.
Recoverable amount is the higher of fair value less costs to sell and value in use. In determining the value in use, the estimated future cash flows which expected to be received are discounted to the present value using a pre-tax discount rate that reflects current market assesments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
19
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
e. Cash and cash equivalents
Cash and cash equivalents comprises cash on hand and in banks and all unrestricted time deposits with an original maturity of three months or less at the time of placement.
Time deposits with maturities of more than three months but not more than one year, are presented as other current financial assets.
f. Investments in associated companies
Investments in companies where the Company and subsidiaries have 20% to 50% of the voting rights, and through which the Company and subsidiaries exert significant influence, but not control, over the financial and operating policies are accounted for using the equity method. Under this method, the Company and subsidiaries recognize their proportionate share in the income or loss of the associated company from the date that significant influence commences until the date that significant influence ceases. When the Company and subsidiaries’ share of loss exceeds the carrying amount of the investment in associated company, the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Company and subsidiaries have incurred legal or constructive obligations or made payments on behalf of the associate.
Investment in joint ventures is accounted for using the equity method whereby the participation in a joint venture is initially recorded at cost and subsequently adjusted for changes in the share of the venturer of the joint venture’s net assets that occurred after the acquisition.
The Company and subsidiaries determine at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If there is, the Company and subsidiaries calculate and recognize the amount of impairment as the difference between the recoverable amount of the investment in associate and its carrying value.
These assets are included in long-term investments in the consolidated statement of financial position.
The functional currency of PT Pasifik Satelit Nusantara (“PSN”) and PT Citra Sari Makmur (“CSM”) is the United States Dollar (“U.S. Dollars”) and the functional currency of Scicom (MSC) Berhad (“Scicom”) is Malaysian Ringgit (“MYR”). For the purpose of reporting these investments using the equity method, the assets and liabilities of these companies as of the statement of financial position date are translated into Indonesian Rupiah using the rate of exchange prevailing at that date, while revenues and expenses are translated into Indonesian Rupiah at the average rates of exchange for the period. The resulting translation adjustments are reported as part of translation adjustment in the equity section of the consolidated statements of financial position.
g. Trade and other receivables
Trade and other receivables are recognized initially at fair value and subsequently measured at amortized cost, less provision for impairment. This provision for impairment is made based on management’s evaluation of the collectability of outstanding amounts. Receivables are written off in the period during which they are determined to be uncollectible.
20
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
h. Inventories
Inventories consist of components and modules, which are subsequently expensed or transferred to property and equipment upon use. Components and modules represent telephone terminals, cables, transmission installation spare parts and other spare parts. Inventories also include Subscriber Identification Module (“SIM”) cards, Removable User Identity Module (“RUIM”) cards, handsets, set top box, wireless broadband modem and blank prepaid voucher, which are expensed upon sale. The costs of inventories comprise of the purchase price, import duties, other taxes, transport, handling and other costs directly attributable to their acquisition. Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimate of selling price less the costs to sell.
Cost is determined using the weighted average method for components, SIM cards, RUIM cards, handsets, set top box, wireless broadband modem and blank prepaid voucher, and the specific identification method for modules.
The amount of any write-down of inventories below cost to net realizable value and all losses of inventories shall be recognized as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, shall be recognized as a reduction in the amount of general and administrative expense in the period in which the reversal occurs.
Provision for obsolescence is primarily based on the estimated forecast of future usage of these items.
i. Prepaid expenses
Prepaid expenses are amortized over their future beneficial periods using the straight-line method.
j. Asset held for sale
Assets (or disposals groups) are classified as asset held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell.
Assets that meet the criteria to be classified as held for sale are reclassified from property and equipment and depreciation on such assets is ceased.
k. Intangible assets
Intangible assets comprised of intangible assets from subsidiaries or business acquisitions, licenses and computer software. Intangible assets shall be recognized if it is probable that the expected future economic benefits that are attributable to each asset will flow to the Company and subsidiaries and the cost of the asset can be reliably measured.
21
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
k. Intangible assets (continued)
Intangible assets are stated at cost less accumulated amortization and impairment, if any. Intangible assets are amortized over their useful lives. The Company and subsidiaries estimate the recoverable value of their intangible assets. When the carrying amount of an asset exceeds its estimated recoverable amount, the asset is written-down to its estimated recoverable amount.
Intangible assets are amortized using the straight-line method, based on the estimated useful lives of the assets as follows:
|
Years |
License |
10 |
Other intangible assets |
2-20 |
Intangible asset is derecognized when no further economic benefits are expected, neither from further use nor from disposal. The difference between the carrying amount and the net proceeds received from disposal is recognized in the consolidated statement of comprehensive income.
l. Property and equipment - direct acquisitions
Property and equipment directly acquired are stated at cost, less accumulated depreciation and impairment losses.
The cost of the assets includes: (a) purchase price, (b) any costs directly attributable to bringing the asset to its location and condition and (c) the initial estimate of the costs of dismantling and is removing the item and restoring the site on which it is located. Each part of an item of property and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.
Property and equipment, except land, are depreciated using the straight-line method, based on the estimated useful lives of the assets as follows:
|
Years |
Buildings |
20-40 |
Leasehold improvements |
3-7 |
Switching equipment |
5-15 |
Telegraph, telex and data communication equipment |
5-15 |
Transmission installation and equipment |
5-25 |
Satellite, earth station and equipment |
3-20 |
Cable network |
5-25 |
Power supply |
3-10 |
Data processing equipment |
3-10 |
Other telecommunications peripherals |
5 |
Office equipment |
2-5 |
Vehicles |
5-8 |
Customer Premise Equipment (“CPE”) |
10 |
Other equipment |
5 |
Depreciation method, useful life and residual value of an asset are reviewed at least at each financial year-end and adjusted if appropriate. The residual value of an asset is the estimated amount that the Company and subsidiaries would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. The Company and subsidiaries determined the residual value of property and equipment amounting to Rp1.
22
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
l. Property and equipment - direct acquisitions (continued)
The Company and subsidiaries periodically evaluate their property and equipment for impairment, whenever events and circumstances indicate that the carrying amount of the assets may not be recoverable. When the carrying amount of an asset exceeds its estimated recoverable amount, the asset is written down to its estimated recoverable amount, which is determined based on the higher of its fair value less cost to sell or value in use.
Spare parts and servicing equipment are carried as inventory and recognized in profit or loss as consumed. Major spare parts and stand-by equipment that are expected to be used for more than 12 months are recorded as part of property and equipment.
When assets are retired or otherwise disposed of, their cost and the related accumulated depreciation are eliminated from the consolidated statements of financial position, and the resulting gains or losses on the disposal or sale of property and equipment are recognized in the consolidated statements of comprehensive income.
Certain computer hardware can not be used without the availability of certain computer software. In such circumstance, the computer software is recorded as part of the computer hardware. If any computer software is independent from its computer hardware, it is recorded as part of intangible assets.
The cost of maintenance and repairs is charged to the consolidated statements of comprehensive income as incurred. Significant renewals and betterments are capitalized.
Property under construction is stated at cost until construction is completed, at which time it is reclassified to the specific property and equipment account to which it relates. During the construction period until the property is ready for its intended use or sale, borrowing costs, which include interest expense and foreign currency exchange differences incurred on loans obtained to finance the construction of the asset, as long as it meets the definition of qualifying assets, are capitalized in proportion to the average amount of accumulated expenditures during the period. Capitalization of borrowing cost ceases when the construction has been completed and the asset is ready for its intended use.
Equipment temporarily unused is reclassified into equipment not used in operation and depreciated over its estimated useful life using straight-line method.
m. Leases
In determining whether an arrangement is, or contains a lease, the Company and subsidiaries perform an evaluation over the substance of the arrangement. A lease is classified as finance lease or operating lease based on the substance, not the form of the contract. Finance lease is recognized if the lease transfers substantially all the risks and rewards incidental to the ownership.
Assets and liabilities under a finance lease are recognized in the consolidated statement of financial position at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Any initial direct costs of the Company and subsidiaries are added to the amount recognized as an asset.
23
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
m. Leases (continued)
Minimum lease payments shall be apportioned between the finance charge and the reduction of the outstanding liability. The finance charge shall be allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents shall be charged as expenses in the periods in which they are incurred.
Leased assets are depreciated using the same method and based on the useful lives as estimated for directly acquired property and equipment. However, if there is no reasonable certainty that the Company and subsidiaries will obtain ownership by the end of the lease term, the leased assets are fully depreciated over the shorter of the lease term and their economic useful lives.
Lease arrangements that do not meet the above criteria are accounted for as operating leases for which payments are charged as an expense on the straight-line basis over the lease period.
n. Deferred charges - land rights
On January 1, 2012, the Company and subsidiaries implemented ISAK 25, “Land Rights”, which are effective for financial reporting periods beginning on or after January 1, 2012. Based on ISAK 25, land rights include costs incurred to process the initial legal land rights are recognized as part of property and equipments and are not amortized. Costs incurred to process the extension or renewal of legal land rights are deferred and amortized over the shorter of the term of the land rights or the economic life of the land.
o. Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
p. Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of comprehensive income over the period of the borrowings using the effective interest method.
Fees paid on the obtaining of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facility to which it relates.
24
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
q. Foreign currency translation
The functional currency and the recording currency of the Company and subsidiaries is the Indonesian Rupiah, except for the functional currency of Telekomunikasi Indonesia International Pte. Ltd., Hong Kong, Telekomunikasi Indonesia International Pte., Singapore and Telekomunikasi Indonesia International S.A., Timor Leste whose accounting records are maintained in U.S. Dollars. Transactions in foreign currencies are translated into Indonesian Rupiah at the rates of exchange prevailing at transaction date. At the consolidated statement of financial position date, monetary assets and monetary liabilities balances denominated in foreign currencies are translated into Indonesian Rupiah based on the buy and sell rates quoted by Reuters prevailing at the consolidated statement of financial position date as follows:
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
Buy |
|
Sell |
|
Buy |
|
Sell |
|
United States Dollar (“US$”) 1 |
9,920 |
|
9,930 |
|
9,630 |
|
9,645 |
|
Euro 1 |
12,945 |
|
12,959 |
|
12,721 |
|
12,743 |
|
Yen 1 |
100.24 |
|
100.36 |
|
111.65 |
|
111.84 |
|
The resulting foreign exchange gains or losses, realized and unrealized, are credited or charged to the consolidated statement of comprehensive income of the current period, except for foreign exchange differences incurred on borrowings during the construction of qualifying assets which are capitalized to the extent that the borrowings can be attributed to the construction of those qualifying assets (Note 2l).
r. Revenue and expense recognition
i. Fixed line telephone revenues
Revenues from fixed line installations are deferred including incremental costs and recognized as revenue over the expected term of the customer relationships. Based on reviews of historical information and customer trends, the Company determined the expected term of the customer relationships in 2013 and 2012 to be 10 years. Revenues from usage charges are recognized as customers incur the charges. Monthly subscription charges are recognized as revenues when incurred by subscribers.
ii. Cellular and fixed wireless telephone revenues
Revenues from postpaid service, which consist of usage and monthly charges, are recognized as follows:
· Airtime and charges for value added services are recognized based on usage by subscribers.
· Monthly subscription charges are recognized as revenues when incurred by subscribers.
Revenues from prepaid card subscribers, which consist of the sale of starter packs (also known as SIM cards in the case of cellular and RUIM in the case of fixed wireless telephone and start-up load vouchers) and pulse reload vouchers, are recognized as follows:
· Sales of SIM and RUIM cards are recognized as revenue upon delivery of the starter packs to distributors, dealers or directly to customers.
25
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition (continued)
ii. Cellular and fixed wireless telephone revenues (continued)
· Sales of pulse reload vouchers (either bundled in starter packs or sold as separate items) are recognized initially as unearned income and recognized proportionately as usage revenue based on duration and total of successful calls made and the value added services used by the subscribers or the expiration of the unused stored value of the voucher.
· Unutilized promotional credits are netted against unearned income.
iii. Interconnection revenues
The revenues from network interconnection with other domestic and international telecommunications carriers are recognized monthly on the basis of the actual recorded traffic for the month. Interconnection revenues consist of revenues derived from other operators’s subscriber calls to the Company and subsidiary operator’s subscribers (incoming) and calls between subscribers of other operators through the Company and subsidiary’s network (transit).
iv. Data, internet and information technology services revenues
Revenues from data communication and internet are recognized based on service activity and performance which is measured by duration of internet usage or based on the fixed amount charges depending on the arrangements with customers.
Revenues from sales, installation and implementation of computer software and hardware, computer data network installation service and installation are recognized when the goods are delivered to customers or the installation takes place.
Revenue from computer software development service is recognized using the percentage of completion method.
v. Revenues from network
Revenues from network consist of revenues from leased lines and satellite transponder leases which are recognized over the period in which the services are rendered.
vi. Other telecommunications services revenues
Revenues from other telecommunications services consist of Revenue-Sharing Arrangements (“RSA”) and sales of other telecommunication services or goods.
The RSA are recorded in a manner similar to capital leases where the property and equipment and obligation under RSA are reflected in the consolidated statements of financial position. All revenues generated from the RSA are recorded as a component of revenues, while a portion of the investors’ share of the revenues from the RSA is recorded as finance costs with the balance treated as a reduction of the obligation under RSA.
Universal Service Obligation (“USO”) compensation from construction activities to design, build and finance assets for the grantor are recognized on a stage of completion basis. Revenues from operating and maintainance activities in respect of the assets under the concession are recognized when the services are rendered.
26
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition (continued)
vi. Other telecommunications services revenues (continued)
In concession contract under USO, the Company and subsidiaries have contractual rights to receive considerations from the grantor. The Company and subsidiaries recognize a financial asset in its consolidated statements of financial position, in consideration for the services it provides (designing, building, operation or maintenance assets under concession). Such financial assets are recognized in the consolidated statements of financial position as Account Receivables, for the amount of the fair value of the infrastructure on initial recognition and subsequently at amortized cost. The receivable is settled by means of the grantor’s payments received. The financial income calculated on the basis of the effective interest rate is recognized as financing income.
Revenues from sales of other telecommunication services or goods are recognized upon completion of services and or delivery of goods to customers.
vii. Multiple-element arrangements
Where two or more revenue-generating activities or deliverables are sold under a single arrangement, each deliverable that is considered to be a separate unit of accounting is accounted for separately. The total revenue is allocated to each separately identifiable component based on the relative fair value of each component and the appropriate revenue recognition criteria are applied to each component as described above.
viii. Agency relationship
Revenues from an agency relationship are recorded based on the gross amount billed to the customers when the Company and subsidiaries acted as principal in sale of goods and services. Revenues are recorded based on the net amount retained (the amount paid by the customer less with amount paid to the suppliers) because in substance, the Company and subsidiaries has acted as an agent and earned commission from the suppliers of the goods and services sold.
ix. Customer loyalty programme
The Company and subsidiaries operate a loyalty point programme, which allows customers to accumulate points for every certain multiple of the usage of telecommunication services. The points can then be redeemed in the future for free or discounted products, provided other qualifying conditions are achieved.
Consideration received is allocated between the telecommunication services and the points issued, with the consideration allocated to the points equal to their fair value. Fair value of the points is determined based on historical information about redemption rate of award points, The fair value of the points issued is deferred and recognized as revenue when the points are redeemed or expired.
27
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition (continued)
x. Service Concession Arrangements
On January 1, 2012, the Company and subsidiaries implemented ISAK 16,” Service Concession Arrangements”, which are effective for financial reporting periods beginning on or after January 1, 2012. Based on ISAK 16, revenues relating to construction or upgrade services under a service concession arrangements are recognized based on the stage of completion of the work performed. Operation or service revenue is recognized in the period in which the service is provided. When more than one services are provided in the service concession arrangements, the consideration received is allocated by reference to the relative value of the services.
Further, the developed infrastructure assets under these arrangements are not recognized as property, plant and equipment of the operator, because the contractual arrangements do not convey the right to control the use of the public services infrastructure assets to the operator.
xi. Expenses
Expenses are recognized as incurred on the accrual basis.
s. Employee benefits
i. Short-term employee benefits
All short-term employee benefits which consist of salaries and related benefits, vacation pay, incentives and other short-term benefits are recognized as expense on undiscounted basis when employees have rendered service to the Company and subsidiaries.
ii. Pension and post-retirement health care benefit plans
The net obligations in respect of the defined pension benefit and post-retirement health care benefit plans are calculated at the present value of estimated future benefits that the employees have earned in return for their service in the current and prior periods, less the fair value of plan assets and as adjusted for unrecognized actuarial gains or losses and unrecognized past service cost. The calculation is performed by an independent actuary using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of government bonds that are denominated in the currencies in which the benefits will be paid and that have terms to maturity approximating the terms of the related retirement benefit obligation. Government bonds are used as there is no deep market for high quality corporate bonds.
Plan assets are assets that are held by the pension and post-retirement health care benefit plans. These assets are measured at fair value at the end of the reporting period, which is based on the securities’ quoted market price information. The amount of prepaid pension costs that can be recognized is limited to the total of any unrecognized past service costs, unrecognized actuarial losses and the present value of economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.
28
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
s. Employee benefits (continued)
iii. Pension and post-retirement health care benefit plans (continued)
Actuarial gains or losses arising from experience adjustments and changes in actuarial assumptions, when exceeding the greater of 10% of the present value of defined benefit obligation or 10% of the fair value of plan assets, are charged or credited to the consolidated statements of comprehensive income over the average remaining service lives of the relevant employees. Prior service cost is recognized immediately if vested or amortized over the vesting period.
For defined contribution plans, the regular contributions constitute net periodic costs for the period in which they are due and as such are included in staff costs as they become payable.
iii. Long Service Awards (“LSA”) and Long Service Leave (“LSL”)
Employees of Telkomsel are entitled to receive certain cash awards or certain numbers of days leave benefits based on length of service requirements. LSA are either paid at the time the employees reach certain anniversary dates during employment, or at the time of termination. LSL is either a certain number of days leave benefit or cash, subject to approval by management, provided to employee who has met the requisite number of years of service and with a certain minimum age.
Actuarial gains or losses arising from experience and changes in actuarial assumptions are charged immediately to the consolidated statements of comprehensive income.
The obligation with respect to LSA and LSL is calculated by an independent actuary using the projected unit credit method.
iv. Early retirement benefits
Early retirement benefits are accrued at the time the Company makes a commitment to provide early retirement benefits as a result of an offer made in order to encourage voluntary redundancy. A commitment to a termination arises when, and only when a detailed formal plan for the early retirement cannot be withdrawn.
v. Pre-retirement benefits
Employees of the Company are entitled to a benefit during a pre-retirement period in which they are inactive for 6 months prior to their normal retirement age of 56 years. During the pre-retirement period, the employees still receive benefits provided to active employees, which include, but are not limited to regular salary, health care, annual leave, bonus and other benefits. Benefits provided to employees who enter pre-retirement period are calculated by an independent actuary using the projected unit credit method.
29
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
s. Employee benefits (continued)
vi. Other post-retirement benefits
Employees are entitled to home leave passage benefits and final housing facility benefits to their retirement age of 56 years. Those benefits are calculated by an independent actuary using the projected unit credit method.
Gains or losses on curtailment are recognized when there is a commitment to make a material reduction in the number of employee covered by a plan or when there is an amendment of a defined benefit plan terms such that a material element of future services to be provided by current employees will no longer qualify for benefits, or will qualify only for reduced benefits.
Gains or losses on settlement are recognized when there is a transaction that eliminates all further legal or constructive obligation for part or all of the benefits provided under a defined benefit plan.
t. Income tax
Current and deferred tax shall be recognized as income or an expense and included in consolidated statements of comprehensive income, except to the extent that the tax arises from a transaction or event which is recognized directly in equity, the tax shall be recognized directly to equity.
The current tax assets and liabilities are measured at the amount expected to be recovered or paid using the tax rates and tax laws that have been enacted at each reporting date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Where appropriate, managment establishes provisions based on the amounts expected to be paid to the tax authorities.
The Company and subsidiaries recognize deferred tax assets and liabilities for temporary differences between the financial and tax bases of assets and liabilities at each reporting date. The Company and subsidiaries also recognize deferred tax assets resulting from the recognition of future tax benefits, such as the benefit of tax losses carried forward, to the extent their future realization is probable. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates and tax laws at each reporting date which are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled, such as tax rates and tax laws which have been enacted or substantially enacted at each reporting date.
Deferred tax assets and liabilities are offset in the consolidated statements of financial position, except if these are for different legal entities, in the same manner the current tax assets and liabilities are presented.
Amendment to taxation obligation is recorded when an assessment letter (“Surat Ketetapan Pajak” or “SKP”) is received or if appealed against, when the results of the appeal are determined. The additional taxes and penalty imposed through SKP are recognized as income or expense in the current period profit or loss, unless objection/appeal action is taken. The additional taxes and penalty imposed through SKP are deferred as long as they meet the asset recognition criteria.
30
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Financial instruments
The Company and subsidiaries classify financial instruments into financial assets and financial liabilities. Financial assets and liabilities are recognized initially at fair value including transaction costs. These are subsequently measured either at fair value or amortized cost using the effective interest method in accordance with their classification.
i. Financial assets
The Company and subsidiaries classify their financial assets as (i) financial assets at fair value through profit or loss, (ii) loans and receivables, (iii) held-to-maturity financial assets or (iv) available-for-sale financial assets. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets at initial recognition.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Company and subsidiaries commits to purchase or sell the assets.
The Company’s financial assets include cash and cash equivalents, other current financial assets, trade receivables and other receivables, long-term investments, advances and other non-current financial assets.
a. Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets classified as held for trading. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling or repurchasing it in the near term and for which there is evidence of a recent actual pattern of short-term profit taking. Gains or losses arising from changes in fair value of the trading securities are presented as other (expenses)/income in consolidated statements of comprehensive income in the period in which they arise.
No financial assets were classified as financial assets at fair value through profit or loss as of June 30, 2013 and December 31, 2012.
b. Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables consist of, among other things, cash and cash equivalents, trade receivables, other receivables, other current financial assets and other non-current financial assets.
These are initially recognized at fair value including transaction costs and subsequently measured at amortized cost, using the effective interest method.
31
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
i. Financial assets (continued)
c. Held-to-maturity financial assets
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that management has the positive intention and ability to hold to maturity, other than:
a) those that the Company upon initial recognition designates as at fair value through profit or loss;
b) those that the Company designates as available for sale; and
c) those that meet the definition of loans and receivables.
No financial assets were classified as held-to-maturity financial assets as of June 30, 2013 and December 31, 2012.
d. Available-for-sale financial assets
Available-for-sale investments are non-derivative financial assets that are intended to be held for indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or that are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through profit or loss Available-for-sale financial assets consist of bonds and mutual funds which are recorded as other current financial assets.
Available-for-sale securities are stated at fair value. Unrealized holding gains or losses on available-for-sale securities are excluded from income of the current period and are reported as a separate component in the equity section of the consolidated statements of financial position until realized. Realized gains or losses from the sale of available-for-sale securities are recognized in the consolidated statements of comprehensive income, and are determined on a specific identification basis. A decline in the fair value of any available-for-sale securities below cost that is deemed to be other-than-temporary is charged to the consolidated statements of comprehensive income.
ii. Financial liabilities
The Company and subsidiaries classify their financial liabilities as (i) financial liabilities at fair value through profit or loss or (ii) financial liabilities measured at amortized cost.
The Company and subsidiaries’ financial liabilities include trade payables and other payables, accrued expenses, loans and other borrowings which consist of short-term bank loans, obligations under capital lease, two step loans, bonds and notes, and bank loans.
a. Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss are financial liabilities classified as held for trading. A financial liability is classified as held for trading if it is incurred principally for the purpose of selling or repurchasing them in the near term and for which there is evidence of a recent actual pattern of short-term profit taking.
No financial liabilities were categorized as held for trading as of June 30, 2013 and December 31, 2012.
32
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
ii. Financial liabilties (continued)
b. Financial liabilities measured at amortized cost
Financial liabilities that are not classified as at fair value through profit or loss fall into this category and are measured at amortized cost. Financial liabilities measured at amortized cost are among other things, trade payables, other payables, accrued expenses, loans, bonds and notes.
iii. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the consolidated statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.
iv. Fair Value of Financial Instruments
Fair value is the amount for which an asset could be exchanged, or liability settled, in an arms-length transaction.
The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices, without any deduction for transaction costs.
For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include using recent arm’s length market transactions, reference to the current fair value of another instrument that is substantially the same and a discounted cash flow analysis or other valuation models.
An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 44.
v. Impairment of financial assets
The Company and subsidiaries assess the impairment of financial assets if there is objective evidence that a loss event has a negative impact on the estimated future cash flows of the financial asset. Impairment is recognized when the loss event can be reliably estimated. Losses expected as a result of future events, no matter how likely, are not recognized.
Impairment loss on financial assets carried at cost is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.
When a decline in the fair value of an available-for-sale financial asset has been recognized in other comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss that had been recognized in other comprehensive income shall be recognized in profit or loss as an impairment loss. The amount of the cumulative loss shall be the difference between the acquisition cost (net of any principal repayment and amortization) and current fair value, less any impairment loss on that financial asset previously recognized.
33
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
vi. Derecognition of financial instrument
The Company and subsidiaries derecognize a financial asset when the contractual rights to the cash flows from the financial asset expire, or when the Company and subsidiaries transfer substantially all the risks and rewards of ownership of the financial asset.
The Company and subsidiaries derecognize a financial liability when the obligation specified in the contract is discharged or cancelled or expired.
v. Treasury stock
Reacquired Company’s stock is accounted for at its reacquisition cost and classified as “Treasury Stock” and presented as a deduction to equity. The cost of treasury stock sold/transferred is accounted for using the weighted average method. Portion of treasury stock transferred for employees ownership program is accounted for at its fair value. The difference between the cost and the proceeds from the sale/transfer value of treasury stock is credited to “Additional Paid-in Capital”.
w. Dividends
Dividend distribution to the Company’s stockholders is recognized as liability in the Company’s consolidated financial statements in the period in which the dividends are approved by the Company’s stockholders. The Company recognizes interim devidends as liability based on the Board of Directors’ decision with the approval from the Board of Commissioners.
x. Basic earnings per share and earnings per ADS
Basic earnings per share are computed by dividing income for the period attributable to owners of the parent by the weighted average number of shares outstanding during the period. Income per ADS is computed by multiplying basic earnings per share by 40, the number of shares represented by each ADS.
The Company does not have potentially dilutive financial investments.
y. Segment information
The Company and subsidiaries' segment information is presented based upon identified operating segments. An operating segment is a component of an entity: a) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity); b) whose operating results are regularly reviewed by the Company and subsidiaries' chief operating decision maker (“CODM”) ie., Directors, to make decisions about resources to be allocated to the segment and assess its performance, and c) for which discrete financial information is available.
z. Provisions
Provisions are recognized when the Company and subsidiaries have a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the obligation.
34
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
aa. Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company and subsidiaries make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
i. Retirement benefits
The present value of the retirement benefits obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of retirement benefits obligations.
The Company and subsidiaries determine the appropriate discount rate at the end of each reporting period. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the obligations. In determining the appropriate discount rate, the Company and subsidiaries consider the interest rates of government bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related retirement benefits obligations.
If there is an improvement in the ratings of such government bonds or a decrease in interest rates as a result of improving economic conditions, there could be a material impact on the discount rate used in determining the post-employment benefits obligations.
Other key assumptions for retirement benefits obligations are based in part on current market conditions. Additional information is disclosed in Notes 34, 35 and 36.
ii. Estimating useful lives of property and equipment and intangible assets
The Company and subsidiaries estimate the useful lives of their property and equipment and intangible assets based on expected asset utilization, considering strategic business plans, expected future technological developments and market behavior. The estimates of useful lives of property and equipment are based on the Company and subsidiaries collective assessment of industry practice, internal technical evaluation and experience with similar assets.
The Company and subsidiaries review estimates of useful lives at least each financial year end and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limitations on the use of the assets. The amounts and timing of recorded expenses for any year will be affected by changes in these factors and circumstances. A change in the estimated useful lives of the property and equipment is the change in accounting estimates and is applied prospectively in profit or loss in the period of the change and future periods.
Detail of nature and carrying amounts of property and equipment is disclosed in Note 10 and intangible assets in Note 12.
35
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
aa. Critical Accounting Estimates and Judgements (continued)
iii. Provision for impairment of receivables
The Company and subsidiaries assess whether there is objective evidence that trade receivables have been impaired at the end of each reporting period. Provision for impairment of receivables is calculated based on a review of the current status of existing receivables and historical collection experience. Such provisions are adjusted periodically to reflect the actual and anticipated experience. Detail of nature and carrying amounts of provision for impairment of receivables is disclosed in Note 5.
iv. Income taxes
Significant judgement is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company and subsidiaries recognize liabilities for anticipated tax audit issues based on estimates whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. Detail of nature and carrying amounts of income tax is disclosed in Note 31.
v. Impairment of non-financial assets
The Company and subsidiaries annually assess whether goodwill is impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset exceeds its recoverable amount. The recoverable amount of an asset or a cash generating unit (“CGU”) is determined based on the higher of its fair value less costs to sell and its value in use, calculated on the basis of management’s assumptions and estimates.
In determining value in use, the Company and subsidiaries apply management judgement in establishing forecasts of future operating performance, as well as the selection of growth rates and discount rates. These judgements are applied based on our understanding of historical information and expectations of future performance. Changing the key assumptions, including the discount rates or the growth rate assumptions in the cash flow projections, could materially affect the value in use calculations.
For the year ended December 31, 2012 the Company recognized Rp247 billion of impairment loss on property and equipment in pertaining to the fixed wireless services. A 1% increase in the discount rate used would result in an increase in impairment loss of approximately Rp458 billion. However, the recoverable amount of the fixed wireless CGU is most sensitive to whether management will be able to implement its plans, including the cost efficiency plan, such that it generates positive cash flows and returns to profitability as projected. If the performance of the fixed wireless CGU continues to decline or if management’s initiatives are not performing as expected in the next financial year, analysis will be required to assess whether there will be further impairment next year (Note 10b).
36
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS
|
June 30, 2013 |
|
December 31, 2012 |
|
Cash on hand |
25 |
|
7 |
|
Cash in banks |
|
|
|
|
Related parties |
|
|
|
|
Rupiah |
|
|
|
|
PT Bank Mandiri (Persero) Tbk (“Bank Mandiri”) |
660 |
|
913 |
|
PT Bank Negara Indonesia (Persero) Tbk (“BNI”) |
171 |
|
284 |
|
PT Bank Rakyat Indonesia (Persero) Tbk (“BRI”) |
116 |
|
87 |
|
Others |
20 |
|
14 |
|
|
967 |
|
1,298 |
|
Foreign currencies |
|
|
|
|
Bank Mandiri |
535 |
|
222 |
|
BRI |
353 |
|
- |
|
BNI |
116 |
|
20 |
|
Others |
- |
|
2 |
|
|
1,004 |
|
244 |
|
Sub total |
1,971 |
|
1,542 |
|
Third parties |
|
|
|
|
Rupiah |
|
|
|
|
Deutsche Bank AG (“DB”) |
62 |
|
62 |
|
PT Bank CIMB Niaga Tbk (”Bank CIMB Niaga”) |
54 |
|
59 |
|
PT Bank Central Asia Tbk (”BCA“) |
38 |
|
36 |
|
Others (each below Rp50 billion) |
123 |
|
67 |
|
|
277 |
|
224 |
|
Foreign currencies |
|
|
|
|
PT Standard Chartered Bank (“SCB”) |
109 |
|
112 |
|
Others (each below Rp50 billion) |
55 |
|
65 |
|
|
164 |
|
177 |
|
Sub total |
441 |
|
401 |
|
Total cash in banks |
2,412 |
|
1,943 |
|
Time deposits |
|
|
|
|
Related parties |
|
|
|
|
Rupiah |
|
|
|
|
BNI |
2,588 |
|
1,511 |
|
BRI |
2,280 |
|
2,883 |
|
Bank Mandiri |
576 |
|
312 |
|
PT Bank Tabungan Negara (Persero) Tbk (“BTN”) |
112 |
|
401 |
|
Others (each below Rp30 billion) |
24 |
|
43 |
|
|
5,580 |
|
5,150 |
|
Foreign currencies |
|
|
|
|
BRI |
1,269 |
|
1,966 |
|
BNI |
3545 |
|
112 |
|
Bank Mandiri |
- |
|
222 |
|
|
1,623 |
|
2,300 |
|
Sub total |
7,203 |
|
7,450 |
|
37
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS (continued)
|
June 30, 2013 |
|
December 31, 2012 |
|
Time deposits (continued) |
|
|
|
|
Third parties |
|
|
|
|
Rupiah |
|
|
|
|
SCB |
483 |
|
- |
|
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk (“BJB”) |
85 |
|
170 |
|
PT Bank Mega Tbk (“Bank Mega”) |
85 |
|
335 |
|
PT Bank Muamalat Indonesia |
83 |
|
153 |
|
PT Bank Internasional Indonesia Tbk (“BII”) |
80 |
|
120 |
|
PT Bank Tabungan Pensiunan Nasional Tbk |
62 |
|
167 |
|
PT Bank Bukopin Tbk (“Bank Bukopin”) |
37 |
|
160 |
|
PT Bank Danamon (“Bank Danamon”) |
31 |
|
61 |
|
PT Pan Indonesia Bank Tbk |
30 |
|
100 |
|
Bank CIMB Niaga |
10 |
|
225 |
|
DB |
9 |
|
31 |
|
PT Bank Buana (“Bank Buana”) |
- |
|
60 |
|
PT Bank OCBC NISP Tbk (“OCBC NISP”) |
- |
|
400 |
|
Citibank N.A. (“Citibank”) |
- |
|
400 |
|
Others |
36 |
|
15 |
|
|
1,031 |
|
2,397 |
|
Foreign currencies |
|
|
|
|
SCB |
- |
|
804 |
|
OCBC NISP |
880 |
|
517 |
|
|
880 |
|
1,321 |
|
Sub total |
1,911 |
|
3,718 |
|
Total time deposits |
9,114 |
|
11,168 |
|
Grand Total |
11,551 |
|
13,118 |
|
Interest rates per annum on time deposits are as follows:
|
June 30, 2013 |
|
December 31, 12 |
|
Rupiah |
1.00% - 8.00% |
|
2.25% - 8.50% |
|
Foreign currencies |
0.03% - 3.00 % |
|
0.05% - 3.50% |
|
The related parties in which the Company and subsidiaries place their funds are state-owned banks. The Company and subsidiaries placed majority of their cash and cash equivalents in these banks because they have the most extensive branch networks in Indonesia and are considered to be financially sound banks as they are owned by the State.
Refer to Note 37 for details of related party transactions.
38
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
4. OTHER CURRENT FINANCIAL ASSETS
|
June 30, 2013 |
|
December 31, 2012 |
|
Time deposits |
|
|
|
|
Related party |
|
|
|
|
BRI |
248 |
|
1,650 |
|
Others |
10 |
|
- |
|
Sub total |
258 |
|
1,650 |
|
Third parties |
|
|
|
|
SCB |
111 |
|
1,350 |
|
OCBC NISP |
- |
|
1,000 |
|
Others |
14 |
|
- |
|
Sub total |
125 |
|
2,350 |
|
Total time deposits |
383 |
|
4,000 |
|
Available-for-sale financial assets |
|
|
|
|
Related parties |
|
|
|
|
The Government |
132 |
|
123 |
|
State-owned enterprises |
64 |
|
67 |
|
PT Bahana Securities (“Bahana”) |
48 |
|
48 |
|
Sub total |
244 |
|
238 |
|
Third parties |
69 |
|
72 |
|
Total available-for-sale financial assets |
313 |
|
310 |
|
Others |
- |
|
28 |
|
Total |
696 |
|
4,338 |
|
Time deposits represent time deposits with maturities of more than three months but not more than one year, with interest rates as follow:
|
June 30, 2013 |
|
December 31, 12 |
|
Rupiah |
4.25% - 5.25% |
|
6.25% - 6.75% |
|
Foreign currency |
0.90% - 2.00% |
|
- |
|
Refer to Note 37 for details of related party transactions.
5. TRADE RECEIVABLES
Trade receivables arise from services provided to both retail and non-retail customers, with details as follows:
a. By debtor
(i) Related parties
|
June 30, 2013 |
|
December 31, 2012 |
|
State-owned enterprises |
647 |
|
549 |
|
PT Patra Telekomunikasi Indonesia (“Patrakom”) |
81 |
|
56 |
|
PT Indosat Tbk (“Indosat”) |
62 |
|
55 |
|
CSM |
45 |
|
51 |
|
Others (each below Rp30 billion) |
359 |
|
62 |
|
Total |
1,194 |
|
773 |
|
Provision for impairment of receivables |
(63 |
) |
(72 |
) |
Net |
1,131 |
|
701 |
|
39
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES (continued)
a. By debtor (continued)
(ii) Third parties
|
June 30, 2013 |
|
December 31, 2012 |
|
Individual and business subscribers |
7,278 |
|
6,177 |
|
Overseas international carriers |
156 |
|
320 |
|
Total |
7,434 |
|
6,497 |
|
Provision for impairment of receivables |
(1,951 |
) |
(1,975 |
) |
Net |
5,483 |
|
4,522 |
|
Trade receivables from certain parties are presented net of the Company and subsidiaries’ liabilities to such parties due to the existence of a legal right of set-off in accordance with the agreements with those parties.
b. By age
(i) Related parties
|
June 30, 2013 |
|
December 31, 2012 |
|
Up to 6 months |
460 |
|
442 |
|
7 to 12 months |
466 |
|
248 |
|
More than 12 months |
268 |
|
83 |
|
Total |
1,194 |
|
773 |
|
Provision for impairment of receivables |
(63 |
) |
(72 |
) |
Net |
1,131 |
|
701 |
|
(ii) Third parties
|
June 30, 2013 |
|
December 31, 2012 |
|
Up to 3 months |
4,822 |
|
3,969 |
|
More than 3 months |
2,612 |
|
2,528 |
|
Total |
7,434 |
|
6,497 |
|
Provision for impairment of receivables |
(1,951 |
) |
(1,975 |
) |
Net |
5,483 |
|
4,522 |
|
(iii) Aging of total trade receivables
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
Gross |
|
Provision for impairment of receivables |
|
Gross |
|
Provision for impairment of receivables |
|
Not past due |
3,293 |
|
138 |
|
3,174 |
|
140 |
|
Past due up to 3 months |
1,935 |
|
163 |
|
1,250 |
|
157 |
|
Past due more than 3 to 6 months |
716 |
|
172 |
|
455 |
|
193 |
|
Past due more than 6 months |
2,684 |
|
1,541 |
|
2,391 |
|
1,557 |
|
Total |
8,628 |
|
2,014 |
|
7,270 |
|
2,047 |
|
40
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES (continued)
b. By age (continued)
(iii) Aging of total trade receivables (continued)
The Company and subsidiaries have made provision for impairment of receivables based on the collective account of historical impairment rates and individual account of its customers’ credit history. The Company and subsidiaries do not apply a distinction between related party and third party receivables in assessing amounts past due. As of June 30, 2013 and December 31, 2012, the carrying amount of trade receivables of the Company and subsidiaries considered past due but not impaired amounted to Rp3,459 billion and Rp2,189 billion, respectively. Management has concluded that receivables past due but not impaired, along with trade receivables that are neither past due nor impaired, are due from customers with good debt history and are expected to be recoverable.
c. By currency
(i) Related parties
|
June 30, 2013 |
|
December 31, 2012 |
|
Rupiah |
863 |
|
686 |
|
U.S. Dollar |
331 |
|
87 |
|
Total |
1,194 |
|
773 |
|
Provision for impairment of receivables |
(63 |
) |
(72 |
) |
Net |
1,131 |
|
701 |
|
(ii) Third parties
|
June 30, 2013 |
|
December 31, 2012 |
|
Rupiah |
6,637 |
|
5,770 |
|
U.S. Dollar |
794 |
|
722 |
|
Hong Kong Dollar |
1 |
|
2 |
|
Australia Dollar |
0 |
|
- |
|
Euro |
2 |
|
3 |
|
Total |
7,434 |
|
6,497 |
|
Provision for impairment of receivables |
(1,951 |
) |
(1,975 |
) |
Net |
5,483 |
|
4,522 |
|
d. Movements in the provision for impairment of receivables
|
June 30, 2013 |
|
December 31, 2012 |
|
Beginning balance |
2,047 |
|
1,732 |
|
Provision recognized during the year (Note 29) |
411 |
|
848 |
|
Receivables written off |
(444 |
) |
(533 |
) |
Ending balance |
2,014 |
|
2,047 |
|
41
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES (continued)
d. Movements in the provision for impairment of receivables (continued)
Receivables written off represent to third party trade receivables written off.
Management believes that the provision for impairment of receivables is adequate to cover losses on uncollectible trade receivables.
Certain trade receivables of the Company’s subsidiaries amounting to Rp1,672 billion have been pledged as collateral for lending agreements (Notes 16 and 20).
Refer to Note 37 for details of related party transactions.
6. INVENTORIES
|
June 30, 2013 |
|
December 31, 2012 |
|
Modules |
318 |
|
316 |
|
Components |
252 |
|
183 |
|
SIM cards, RUIM cards, set top box and blank prepaid vouchers |
155 |
|
134 |
|
Others (each below Rp50 billion) |
50 |
|
94 |
|
Total |
775 |
|
727 |
|
Provision for obsolescence |
|
|
|
|
Modules |
(101 |
) |
(96 |
) |
Components |
(39 |
) |
(51 |
) |
SIM cards, RUIM cards, set top box and blank prepaid vouchers |
(1 |
) |
(1 |
) |
Total |
(141 |
) |
(148 |
) |
Net |
634 |
|
579 |
|
Movements in the provision for obsolescence are as follows:
|
June 30, 2013 |
|
December 31, 2012 |
|
Beginning balance |
148 |
|
106 |
|
Provision recognized during the year (Note 29) |
8 |
|
67 |
|
Inventories written-off |
(15 |
) |
(25 |
) |
Ending balance |
141 |
|
148 |
|
42
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
6. INVENTORIES (continued)
The inventories recognized as expense and included in operations, maintenance, and telecommunication services expenses (Note 28) for the years ended June 30, 2013 and December 31, 2012 amounted to Rp424 billion and Rp633 billion, respectively.
Management believes that the provision is adequate to cover losses from declines in inventory value due to obsolescence.
Certain inventories of the Company’s subsidiaries amounting to Rp49 billion have been pledged as collateral for lending agreements (Notes 16 and 20).
As of June 30, 2013 and December 31, 2012, modules and components held by the Company and subsidiaries have been insured against fire, theft, and other specific risks with total sum insured amounting to Rp299 billion and Rp275 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses from the above risks.
7. ADVANCES AND PREPAID EXPENSES
|
June 30, 2013 |
|
December 31, 2012 |
|
Frequency license (Notes 41c.i and 41c.ii) |
1,411 |
|
2,563 |
|
Prepaid rental |
756 |
|
666 |
|
Salaries |
491 |
|
165 |
|
Advances |
219 |
|
120 |
|
Deffered expense |
30 |
|
45 |
|
Others (each below Rp50 billion) |
184 |
|
162 |
|
Total |
3,091 |
|
3,721 |
|
Refer to Note 37 for details of related party transactions.
8. ASSET HELD FOR SALE
This account represents the carrying amount of Telkomsel’s equipment to be exchanged with equipment of Nokia Siemens Network Oy (“NSN Oy”) and PT Huawei Tech Investment (“PT Huawei”). The equipment will be used as part of the settlement for the exchanges of equipment from these companies.
In 2013, Telkomsel’s equipment with net carrying amount of Rp131 billion is reclassified to asset held for sale.
Asset held for sale is presented under personal segment (Note 38).
43
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
9. LONG-TERM INVESTMENTS
|
June 30, 2013 |
| ||||||||||||
|
Percentage of ownership |
|
Beginning balance |
|
Addition |
|
Share of net (loss) profit of associated company |
|
Dividend |
|
Translation adjustment |
|
Ending balance |
|
Long-term Investments in associated companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scicoma |
29.71 |
|
98 |
|
- |
|
- |
|
(3 |
) |
(2 |
) |
93 |
|
Patrakomb |
40.00 |
|
46 |
|
- |
|
1 |
|
- |
|
- |
|
47 |
|
ILCSc |
49.00 |
|
48 |
|
- |
|
(4 |
) |
- |
|
- |
|
44 |
|
PT Melon Indonesia (“Melon”)d |
51.00 |
|
42 |
|
- |
|
(3 |
) |
- |
|
- |
|
39 |
|
CSMe |
25.00 |
|
20 |
|
- |
|
- |
|
- |
|
- |
|
20 |
|
PSNf |
22.38 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Sub total |
|
|
254 |
|
- |
|
(6 |
) |
(3 |
) |
(2 |
) |
243 |
|
Other long-term investments |
|
|
21 |
|
- |
|
- |
|
- |
|
- |
|
21 |
|
Total long-term investments |
|
|
275 |
|
- |
|
(6 |
) |
(3 |
) |
- |
|
264 |
|
|
June 30, 2013 |
| ||||||
|
Assets |
|
Liabilities |
|
Revenue |
|
Profit (loss) |
|
Long-term investments in associated companies: |
|
|
|
|
|
|
|
|
Scicoma |
227 |
|
24 |
|
104 |
|
(10 |
) |
Patrakomc |
234 |
|
119 |
|
110 |
|
3 |
|
ILCSc |
96 |
|
7 |
|
2 |
|
(8 |
) |
Melond |
97 |
|
20 |
|
26 |
|
(5 |
) |
CSMe |
1,168 |
|
905 |
|
101 |
|
- |
|
PSNf |
590 |
|
1,512 |
|
73 |
|
- |
|
Total |
2,412 |
|
2,587 |
|
416 |
|
(20 |
) |
|
December 31, 2012 |
| ||||||||||||
|
Percentage of ownership |
|
Beginning balance |
|
Addition |
|
Share of net (loss) profit of associated company |
|
Dividend |
|
Translation adjustment |
|
Ending balance |
|
Long-term Investments in associated companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scicoma |
29.71 |
|
101 |
|
- |
|
(2 |
) |
(8 |
) |
7 |
|
98 |
|
ILCSc |
49.00 |
|
- |
|
49 |
|
(1 |
) |
- |
|
- |
|
48 |
|
Patrakomb |
40.00 |
|
43 |
|
- |
|
5 |
|
(2 |
) |
- |
|
46 |
|
PT Melon Indonesia (“Melon”)d |
51.00 |
|
44 |
|
- |
|
(2 |
) |
- |
|
- |
|
42 |
|
CSMe |
25.00 |
|
26 |
|
- |
|
(11 |
) |
- |
|
5 |
|
20 |
|
PSNf |
22.38 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Sub total |
|
|
214 |
|
49 |
|
(11 |
) |
(10 |
) |
12 |
|
254 |
|
Other long-term investments |
|
|
21 |
|
- |
|
- |
|
- |
|
- |
|
21 |
|
Total long-term investments |
|
|
235 |
|
49 |
|
(11 |
) |
(10 |
) |
12 |
|
275 |
|
44
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
9. LONG-TERM INVESTMENTS (continued)
|
December 31, 2012 |
| ||||||
|
Assets |
|
Liabilities |
|
Revenue |
|
Profit (loss) |
|
Long-term investments in associated companies: |
|
|
|
|
|
|
|
|
Scicoma |
223 |
|
17 |
|
399 |
|
40 |
|
ILCSc |
104 |
|
7 |
|
1 |
|
(3 |
) |
Patrakomb |
218 |
|
102 |
|
226 |
|
12 |
|
Melond |
89 |
|
7 |
|
10 |
|
(4 |
) |
CSMe |
1,168 |
|
905 |
|
403 |
|
(44 |
) |
PSNf |
590 |
|
1,512 |
|
292 |
|
1 |
|
Total |
2,392 |
|
2,550 |
|
1,331 |
|
2 |
|
a Scicom is engaged in providing call center services in Malaysia.
b Patrakom is engaged in providing satellite communication system services, related services and facilities to companies in the petroleum industry. On June 28, 2013, the Company signed the agreement binding for sale and purchase of shares with PT Elnusa Tbk (“Elnusa”) as the owner of 40% Patrakom shares. Based on the agreement, the Company accepted the transfer of all Elnusa ownership in Patrakom. The closing of the transaction will be conducted no later than 31 August 2013.
c ILCS is engaged in providing E-trade logistic services and other related services.
d Melon is engaged in providing Digital Content Exchange Hub services (“DCEH”). As a result of the existence of substantive participating rights held by the other venturer over the significant financial and operating policies of Melon, Metra does not have control over Melon.
e CSM is engaged in providing Very Small Aperture Terminal (“VSAT”), network application services and consulting services on telecommunications technology and related facilities.
f PSN is engaged in providing satellite transponder leasing and satellite-based communication services in the Asia Pacific region. The Company’s share in losses of PSN has exceeded the carrying amount of its investment since 2001, accordingly, the investment value has been reduced to Rp nil. The unrecognized share of losses of PSN was around Rp920 billion for six months period ended June 30, 2013 and for the year ended December 31, 2012, respectively.
10. PROPERTY AND EQUIPMENT
|
January 1, 2013 |
|
Additions |
|
Deductions |
|
Reclassifications |
|
June 30, 2013 |
|
At cost: |
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
Land |
977 |
|
71 |
|
- |
|
(1 |
) |
1,047 |
|
Buildings |
3,787 |
|
191 |
|
- |
|
73 |
|
4,051 |
|
Leasehold improvements |
783 |
|
- |
|
(27 |
) |
35 |
|
791 |
|
Switching equipment |
23,750 |
|
161 |
|
(2,535 |
) |
3,105 |
|
24,481 |
|
Telegraph, telex, and data communication equipment |
19 |
|
- |
|
- |
|
(19 |
) |
0 |
|
Transmission installation and equipment |
85,289 |
|
374 |
|
(1,124 |
) |
(1,015 |
) |
83,524 |
|
Satellite, earth station, and equipment |
7,267 |
|
2 |
|
(2 |
) |
(2,287 |
) |
4,980 |
|
Cable network |
27,658 |
|
718 |
|
(62 |
) |
3,528 |
|
31,842 |
|
Power supply |
10,434 |
|
45 |
|
(56 |
) |
384 |
|
10,807 |
|
Data processing equipment |
8,196 |
|
167 |
|
(12 |
) |
(1,306 |
) |
7,045 |
|
Other telecommunications peripherals |
280 |
|
14 |
|
- |
|
672 |
|
966 |
|
Office equipment |
680 |
|
26 |
|
- |
|
(117 |
) |
589 |
|
Vehicles |
71 |
|
- |
|
(1 |
) |
154 |
|
224 |
|
Other equipment |
111 |
|
1 |
|
- |
|
515 |
|
627 |
|
Property under construction: |
|
|
|
|
|
|
|
|
|
|
Buildings |
206 |
|
359 |
|
- |
|
(226 |
) |
339 |
|
Leasehold improvements |
1 |
|
17 |
|
- |
|
(17 |
) |
1 |
|
Switching equipment |
- |
|
374 |
|
- |
|
(374 |
) |
0 |
|
Transmission installation and equipment |
639 |
|
5,909 |
|
- |
|
(5,888 |
) |
660 |
|
Satellite, earth station, and equipment |
- |
|
79 |
|
- |
|
(79 |
) |
- |
|
Cable network |
288 |
|
153 |
|
- |
|
(3 |
) |
438 |
|
Power supply |
112 |
|
530 |
|
- |
|
(474 |
) |
168 |
|
Data processing equipment |
66 |
|
185 |
|
- |
|
(167 |
) |
84 |
|
45
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
|
January 1, 2013 |
|
Additions |
|
Deductions |
|
Reclassifications |
|
June 30, 2013 |
|
At cost (continued): |
|
|
|
|
|
|
|
|
|
|
Leased assets |
|
|
|
|
|
|
|
|
|
|
Transmission installation and equipment |
2,873 |
|
1,177 |
|
- |
|
14 |
|
4,064 |
|
Data processing equipment |
339 |
|
- |
|
- |
|
(8 |
) |
331 |
|
Office equipment |
15 |
|
12 |
|
- |
|
(6 |
) |
21 |
|
CPE assets |
22 |
|
- |
|
- |
|
- |
|
22 |
|
RSA assets: |
|
|
|
|
|
|
|
|
|
|
Switching equipment |
83 |
|
- |
|
- |
|
- |
|
83 |
|
Transmission installation and equipment |
8 |
|
- |
|
- |
|
- |
|
8 |
|
Cable network |
366 |
|
- |
|
- |
|
- |
|
366 |
|
Other telecommunications peripherals |
2 |
|
- |
|
- |
|
- |
|
2 |
|
Total |
174,322 |
|
10,565 |
|
(3,819 |
) |
(3,507 |
) |
177,561 |
|
Accumulated depreciation and impairment losses: |
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
Buildings |
1,739 |
|
118 |
|
- |
|
(24 |
) |
1,833 |
|
Leasehold improvements |
609 |
|
33 |
|
(27 |
) |
7 |
|
622 |
|
Switching equipment |
17,105 |
|
988 |
|
(2,426 |
) |
815 |
|
16,482 |
|
Telegraph, telex, and datacommunication equipment |
16 |
|
- |
|
- |
|
(16 |
) |
- |
|
Transmission installation and equipment |
41,210 |
|
3,508 |
|
(1,061 |
) |
(3,960 |
) |
39,697 |
|
Satellite, earth station, and equipment |
4,684 |
|
273 |
|
(2 |
) |
(1,273 |
) |
3,682 |
|
Cable network |
17,291 |
|
589 |
|
(51 |
) |
1,930 |
|
19,759 |
|
Power supply |
5,982 |
|
563 |
|
(55 |
) |
(292 |
) |
6,198 |
|
Data processing equipment |
6,355 |
|
328 |
|
(12 |
) |
(1,174 |
) |
5,497 |
|
Other telecommunications peripherals |
259 |
|
9 |
|
- |
|
308 |
|
576 |
|
Office equipment |
548 |
|
30 |
|
- |
|
(109 |
) |
469 |
|
Vehicles |
61 |
|
8 |
|
- |
|
(5 |
) |
64 |
|
Other equipment |
102 |
|
5 |
|
- |
|
451 |
|
558 |
|
Leased assets |
782 |
|
148 |
|
- |
|
9 |
|
939 |
|
Transmission installation and equipment |
|
|
|
|
|
|
|
|
|
|
Data processing equipment |
261 |
|
19 |
|
- |
|
(6 |
) |
274 |
|
Office equipment |
7 |
|
1 |
|
- |
|
(4 |
) |
4 |
|
CPE assets |
11 |
|
1 |
|
- |
|
- |
|
12 |
|
RSA assets: |
|
|
|
|
|
|
|
|
|
|
Switching equipment |
41 |
|
3 |
|
- |
|
- |
|
44 |
|
Transmission installation and equipment |
12 |
|
1 |
|
- |
|
- |
|
13 |
|
Cable network |
199 |
|
17 |
|
- |
|
- |
|
216 |
|
Other telecommunications peripherals |
1 |
|
- |
|
- |
|
- |
|
1 |
|
Total |
97,275 |
|
6,642 |
|
(3,634 |
) |
(3,343 |
) |
96,940 |
|
Net Book Value |
77,047 |
|
|
|
|
|
|
|
80,621 |
|
46
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
|
January 1, 2012 |
|
Additions |
|
Impairments |
|
Deductions |
|
Reclassifications |
|
December 31, 2012 |
|
At cost: |
|
|
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
842 |
|
135 |
|
- |
|
- |
|
(0 |
) |
977 |
|
Land |
|
|
|
|
|
|
|
|
|
|
|
|
Buildings |
3,417 |
|
98 |
|
- |
|
(0 |
) |
272 |
|
3,787 |
|
Leasehold improvements |
650 |
|
6 |
|
- |
|
(3 |
) |
130 |
|
783 |
|
Switching equipment |
25,470 |
|
91 |
|
- |
|
(1,438 |
) |
(373 |
) |
23,750 |
|
Telegraph, telex, and data communication equipment |
20 |
|
- |
|
- |
|
- |
|
(1 |
) |
19 |
|
Transmission installation and equipment |
78,584 |
|
746 |
|
- |
|
(1,680 |
) |
7,639 |
|
85,289 |
|
Satellite, earth station, and equipment |
7,069 |
|
35 |
|
- |
|
- |
|
163 |
|
7,267 |
|
Cable network |
26,392 |
|
1,965 |
|
- |
|
(244 |
) |
(455 |
) |
27,658 |
|
Power supply |
9,339 |
|
194 |
|
- |
|
(83 |
) |
984 |
|
10,434 |
|
Data processing equipment |
8,082 |
|
323 |
|
- |
|
(210 |
) |
1 |
|
8,196 |
|
Other telecommunications peripherals |
472 |
|
- |
|
- |
|
- |
|
(192 |
) |
280 |
|
Office equipment |
727 |
|
60 |
|
- |
|
(47 |
) |
(60 |
) |
680 |
|
Vehicles |
84 |
|
6 |
|
- |
|
(4 |
) |
(15 |
) |
71 |
|
Other equipment |
111 |
|
1 |
|
- |
|
- |
|
(1 |
) |
111 |
|
Property under construction: |
|
|
|
|
|
|
|
|
|
|
|
|
Buildings |
139 |
|
381 |
|
- |
|
- |
|
(314 |
) |
206 |
|
Leasehold improvements |
3 |
|
32 |
|
- |
|
- |
|
(34 |
) |
1 |
|
Switching equipment |
70 |
|
883 |
|
- |
|
- |
|
(953 |
) |
- |
|
Transmission installation and |
|
|
|
|
|
|
|
|
|
|
|
|
equipment |
826 |
|
7,951 |
|
- |
|
(1 |
) |
(8,137 |
) |
639 |
|
Satellite, earth station, and equipment |
21 |
|
125 |
|
- |
|
- |
|
(146 |
) |
- |
|
Cable network |
42 |
|
241 |
|
- |
|
(42 |
) |
47 |
|
288 |
|
Power supply |
30 |
|
909 |
|
- |
|
- |
|
(827 |
) |
112 |
|
Data processing equipment |
72 |
|
502 |
|
- |
|
- |
|
(508 |
) |
66 |
|
Leased assets |
305 |
|
2,582 |
|
- |
|
(10 |
) |
(4 |
) |
2,873 |
|
Transmission installation and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
Data processing equipment |
344 |
|
6 |
|
- |
|
(0 |
) |
(11 |
) |
339 |
|
Office equipment |
27 |
|
- |
|
- |
|
- |
|
(12 |
) |
15 |
|
Vehicles |
48 |
|
- |
|
- |
|
(48 |
) |
- |
|
- |
|
CPE assets |
22 |
|
- |
|
- |
|
- |
|
- |
|
22 |
|
RSA assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Switching equipment |
81 |
|
- |
|
- |
|
- |
|
2 |
|
83 |
|
Transmission installation and equipment |
16 |
|
- |
|
- |
|
- |
|
(8 |
) |
8 |
|
Cable network |
380 |
|
- |
|
- |
|
- |
|
(14 |
) |
366 |
|
Other telecommunications peripherals |
2 |
|
- |
|
- |
|
- |
|
- |
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
163,687 |
|
17,272 |
|
- |
|
(3,810 |
) |
(2,827 |
) |
174,322 |
|
47
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
|
January 1, 2012 |
|
Additions |
|
Impairments |
|
Deductions |
|
Reclassifications |
|
December 31, 2012 |
|
Accumulated depreciation and impairment losses: |
|
|
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
|
|
Buildings |
1,671 |
|
130 |
|
- |
|
(0 |
) |
(62 |
) |
1,739 |
|
Leasehold improvements |
502 |
|
63 |
|
- |
|
(3 |
) |
47 |
|
609 |
|
Switching equipment |
17,412 |
|
2,065 |
|
- |
|
(1,112 |
) |
(1,260 |
) |
17,105 |
|
Telegraph, telex, and data communication equipment |
17 |
|
0 |
|
- |
|
- |
|
(1 |
) |
16 |
|
Transmission installation and equipment |
35,169 |
|
6,894 |
|
153 |
|
(988 |
) |
(18 |
) |
41,210 |
|
Satellite, earth station, and equipment |
4,135 |
|
517 |
|
94 |
|
- |
|
(62 |
) |
4,684 |
|
Cable network |
16,952 |
|
1,057 |
|
- |
|
(238 |
) |
(480 |
) |
17,291 |
|
Power supply |
4,916 |
|
1,221 |
|
- |
|
(59 |
) |
(96 |
) |
5,982 |
|
Data processing equipment |
6,189 |
|
1,001 |
|
- |
|
(165 |
) |
(670 |
) |
6,355 |
|
Other telecommunications peripherals |
353 |
|
5 |
|
- |
|
- |
|
(99 |
) |
259 |
|
Office equipment |
523 |
|
61 |
|
- |
|
(14 |
) |
(22 |
) |
548 |
|
Vehicles |
74 |
|
6 |
|
- |
|
(4 |
) |
(15 |
) |
61 |
|
Other equipment |
98 |
|
5 |
|
- |
|
- |
|
(1 |
) |
102 |
|
Leased assets |
270 |
|
514 |
|
- |
|
(2 |
) |
- |
|
782 |
|
Transmission installation and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
Data processing equipment |
217 |
|
51 |
|
- |
|
- |
|
(7 |
) |
261 |
|
Office equipment |
9 |
|
4 |
|
- |
|
- |
|
(6 |
) |
7 |
|
Vehicles |
47 |
|
1 |
|
- |
|
(48 |
) |
- |
|
- |
|
CPE assets |
9 |
|
2 |
|
- |
|
- |
|
- |
|
11 |
|
RSA assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Switching equipment |
33 |
|
6 |
|
- |
|
- |
|
2 |
|
41 |
|
Transmission installation and equipment |
18 |
|
2 |
|
- |
|
- |
|
(8 |
) |
12 |
|
Cable network |
175 |
|
28 |
|
- |
|
- |
|
(4 |
) |
199 |
|
Other telecommunications peripherals |
1 |
|
0 |
|
- |
|
- |
|
- |
|
1 |
|
Total |
88,790 |
|
13,633 |
|
247 |
|
(2,633 |
) |
(2,762 |
) |
97,275 |
|
Net Book Value |
74,897 |
|
|
|
|
|
|
|
|
|
77,047 |
|
a. Gain on disposal or sale of property and equipment
|
2013 |
|
2012 |
|
Proceeds from sale of property and equipment |
55 |
|
15 |
|
Net book value |
(12 |
) |
(1 |
) |
Exchange of property and equipment - net |
0 |
|
78 |
|
Gain on disposal or sale of property and equipment |
43 |
|
92 |
|
48
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
b. Assets impairment
(i) As of December 31, 2012, the Cash Generating Unit (CGUs) that independently generate cash inflows were fixed wireline, fixed wireless, cellular and others. As of December 31, 2012, there were indications of impairment in the fixed wireless CGU (presented as part of personal segment), which was mainly due to increased competition in the fixed wireless market and that has resulted in lower average tariffs, declining active customers and declining Average Revenue Per User (“ARPU”). The Company assessed the recoverable value of the assets in the CGU and determined that assets for the fixed wireless CGU were impaired amounting to Rp247 billion at December 31, 2012 and being recognized in the consolidated statement of comprehensive income under “Depreciation and amortization”. The recoverable amount has been determined based on value-in-use (VIU) calculations. These calculations used pre-tax cash flow projections approved by management covering a five-year period and with cash flows beyond the five-year period extrapolated using a perpetuity growth rate. The cash flow projections reflect management’s expectations of revenue, Earning before Interest, Tax, Depreciation and Amortization (“EBITDA”) growth and operating cash flows on the basis that the fixed wireless CGU generates positive net cash flows from 2013. Management’s cash flow projection also incorporates management’s reasonable expectations for developments in macro economic conditions and market expectations for the Indonesian telecommunications industry. As of December 31, 2012, management applied a pre-tax discount rate of 12.3%, derived from the Company’s post-tax weighted average cost of capital and benchmarked to externally available data. As of December 31, 2012, the perpetuity growth rate used of 0.5%, assumes that subscriber numbers may continue to increase after five years, while average revenue per user may decline such that the long-term growth will not be significant.
If the performance of the fixed wireless CGU continues to decline or if management’s initiatives are not performing as expected in the next financial year, analysis will be required to assess whether there will be further impairment next year.
(ii) Management believes that there is no indication of impairment in the value of other CGUs as of December 31, 2012.
c. Others
(i) Interest capitalized to property under construction amounted to Rp42 billion and Rp44 for six months period ended June 30, 2013 and for the years ended December 31, 2012, respectively. The capitalization rate used to determine the amount of borrowing costs eligible for capitalization is ranging from 4.20%-9.75% and 7.72%-9.75% for for six months period ended June 30, 2013 and for the years ended December 31, 2012, respectively.
49
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(ii) No foreign exchange loss was capitalized as part of property under construction for six months period ended June 30, 2013 and for the years ended December 31, 2012.
(iii) On August 7, 2012, Telkom-3 Satellite with a total value of Rp1,606 billion was built and launched, but failed to reach its orbit. The carrying value of the satellite was charged to other expenses in the 2012 consolidated statement of comprehensive income. Telkom-3 Satellite was insured with insurance coverage that was adequate to cover losses from the insured risks such as the event experienced by the Company. Insurance claim was made and the amount of insurance compensation amounting to Rp1,772 billion was agreed and approved by the insurer and recorded as part of other income in the 2012 consolidated statement of comprehensive income. In November 2012, the Company received the proceeds from the insurance claim.
(iv) In 2012, Telkomsel replaced certain equipment with net carrying amount of Rp1,037 billion, as part of a modernization program. Accordingly, Telkomsel changed the estimated useful lives of such equipment resulting in additional depreciation expense of Rp36 billion that was charged to the 2013 consolidated statement of comprehensive income.
The impact of the change in the estimated useful lives of the equipment in the future periods is to decrease the profit before income tax as follows:
Years |
|
Amount |
|
2013 (6 months) |
|
95 |
|
2014 |
|
84 |
|
(v) In 2012, the useful life of Telkomsel’s towers was changed from 10 years to 20 years to reflect the current expected usage and the physical wear and tear of the towers. The impact is a reduction of depreciation expense by Rp307 billion recognized in six months period ended June 30, 2013 consolidated statement of comprehensive income.
The impact of the change in the estimated useful life of the tower in the future periods is to increase the profit before income tax as follows:
Years |
|
Amount |
|
2013 (6 months) |
|
451 |
|
2014 |
|
565 |
|
2015 |
|
469 |
|
2016 |
|
301 |
|
50
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(vi) Exchange of property and equipment
· In 2011, the Company and PT Industri Telekomunikasi Indonesia (“INTI”) signed Purchase Orders of Procurement and Installation Agreement for the Modernization of the Copper Cable Network through Optimization of Asset Copper Cable Network with Trade In/Trade Off (TITO) mode for STO Cengkareng, STO Gandaria and STO Injoko amounting to Rp96 billion, for STO Semanggi amounting to Rp44 billion, and for STO Kelapa Gading, STO Rawamangun, STO Slipi and STO Manyar amounting to Rp177 billion. Up to December 31, 2012, the Company has derecognized the copper cable network asset with net book value of Rp6 billion and recorded the fiber optic network asset from the exchange transaction of Rp430 billion.
· In 2012, Certain equipment (part of infrastructure) with a cost and net carrying amount of Rp412 billion and Rp168 billion, respectively, are going to be exchanged with equipment from NSN Oy and Huawei. Accordingly, these were reclassified to non-current assets held for sale (Note 8).
· In 2012, certain equipment (part of infrastructure) with a net carrying amount of Rp138 billion, respectively, were exchanged with equipment from NSN Oy and Huawei with a total price of USD16.3 million.
The cost of the acquired equipment is measured at the aggregate of the carrying amount of the equipment given up and the amount of cash paid.
(vii) The Company and subsidiaries own several pieces of land located throughout Indonesia with Building Use Rights (“Hak Guna Bangunan” or “HGB”) for a period of 20 - 45 years which will expire between 2013 and 2052. Management believes that there will be no issue in obtaining the extension of the land rights when they expire.
(viii) As of June 30, 2013, the Company and subsidiaries’ property and equipment except land, were insured against fire, theft, earthquake and other specified risks. Total net carrying amount of assets insured amounted to Rp74,304 billion, which was covered by sum insured basis with a maximum loss claim of Rp3,645 billion, US$53.21 million, EURO0.62 million, SGD19.38 million and HKD8.44 million and on first loss basis of Rp6,118 billion including business recovery of Rp324 billion with the Automatic Reinstatement of Loss Clause. In addition, Telkom-1 and Telkom-2 were insured separately for US$8.98 million and US$32.68 million, respectively. Management believes that the insurance coverage is adequate to cover potential losses from the insured risks.
(ix) As of June 30, 2013, the percentage of completion of property under construction was around 36.14% of the total contract value, with estimated dates of completion is Juli 2013 and Maret 2014. Management believes that there is no impediment to the completion of the construction in progress.
(x) All assets owned by the Company and certain subsidiaries have been pledged as collateral for bonds (Note 19a) and Medium Term Notes (Note 19b). Certain property and equipment of the Company’s subsidiaries amounted to Rp6,672 billion have been pledged as collateral for lending agreements (Notes 16 and 20).
(xi) In 2012, the Company and Telkomsel derecognized certain assets under USO arrangements (Note 41c.v), with the cost and net carrying amount of Rp259 billion and Rp137 billion, respectively. The net carrying amount of the assets was charged to the 2012 consolidated statement of comprehensive income.
51
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(xii) As of June 30, 2013 and December 31, 2012, the gross carrying amount of fully depreciated property and equipment of the Company and subsidiaries that are still in use in operation amounted to Rp19,042 billion and Rp39,073 billion, respectively. The Company and subsidiaries are currently performing modernization of network assets to replace the fully depreciated property and equipment.
(xiii) As of December 31, 2012, the fair value of land and buildings of the Company and subsidiaries, which are determined based on the sale value of the tax object (“Nilai Jual Objek Pajak” or “NJOP”) of the related land and buildings, amounted to Rp10,261 billion.
(xiv)The Company and Telkomsel entered into several agreements with PT Solusindo Kreasi Pratama, PT Prima Media Selaras, PT Naragita Dinamika Komunika, PT Profesional Telekomunikasi Indonesia, PT Tower Bersama Infrastructure Tbk and other tower providers to lease spaces in telecommunication towers (slot) and sites of the tower for a period of 10 years. The Company and Telkomsel may extend the lease period based on the agreement by both parties. In addition, the Company and subsidiaries also have lease commitments for property and equipments under RSA, transmission installation and equipment, data processing equipment, office equipment, vehicles and CPE assets with the option to purchase certain leased assets at the end of the lease terms. Future minimum lease payments for assets under finance leases as of June 30, 2013 and December 31, 2012 are as follows:
Year |
|
June 30, 2013 |
|
December 31, 2012 |
|
2013 |
|
1,078 |
|
652 |
|
2014 |
|
496 |
|
548 |
|
2015 |
|
827 |
|
398 |
|
2016 |
|
568 |
|
354 |
|
2017 |
|
547 |
|
334 |
|
Thereafter |
|
1,958 |
|
886 |
|
Total minimum lease payments |
|
5,474 |
|
3,172 |
|
Interest |
|
(2,168 |
) |
(848 |
) |
Net present value of minimum lease payments |
|
3,306 |
|
2,324 |
|
Current maturities (Note 17a) |
|
(552 |
) |
(510 |
) |
Long-term portion (Note 17b) |
|
2,754 |
|
1,814 |
|
11. ADVANCES AND OTHER NON-CURRENT ASSETS
Advances and other non-current assets as of June 30, 2013 and December 31, 2012 consist of:
|
June 30, 2013 |
|
December 31, 2012 |
|
Prepaid rental - net of current portion (Note 7) |
1,348 |
|
1,367 |
|
Advances for purchase of property and equipment |
832 |
|
775 |
|
Frequency license - net of current portion (Note 7) |
684 |
|
279 |
|
Deferred charges |
476 |
|
471 |
|
Long-term trade receivables - net of current portion (Note 5) |
233 |
|
294 |
|
Restricted cash |
154 |
|
217 |
|
Security deposits |
68 |
|
103 |
|
Assets not use in operation - net |
1 |
|
0 |
|
Others |
2 |
|
4 |
|
Total |
3,798 |
|
3,510 |
|
52
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
11. ADVANCES AND OTHER NON-CURRENT ASSETS (continued)
Prepaid rent pertains to rent of leased line and telecommunication equipment and land and building lease agreements of the Company and subsidiaries with rental periods ranging from 1 to 33 years.
As of June 30, 2013 and December 31, 2012, deferred charges represent deferred Revenue-Sharing Arrangements (“RSA”) charges and deferred Indefeasible Right of Use (“IRU”) Agreement charges. Total deferred charges amortization expense for six months periond ended June 30, 2013 and for the year ended December 31, 2012 amounted to Rp44 billion and Rp87 billion, respectively.
Long-term trade receivables represent trade receivables which are measured at amortized cost using the effective interest method, with 4 years period of installments, related to providing telecommunication access and services in rural areas (USO) (Note 41c.v).
As of June 30, 2013 and December 31, 2012, restricted cash represents time deposits with original maturities of more than one year and cash pledged as collateral for bank guarantees for the USO contract (Note 41c.v) and other contracts.
As of June 30, 2013 and December 31, 2012, the carrying amount of the Company and subsidiaries temporarily idle property and equipment amounted to Rp0.6 billion and Rp0.4 billion, respectively.
Refer to Note 37 for details of related party transactions.
12. INTANGIBLE ASSETS
(i) The changes in the carrying amount of goodwill, other intangible assets and license for six months period ended June 30, 2013 and for years ended December 31, 2012 are as follows:
|
Goodwill |
|
Other Intangible assets |
|
License |
|
Total |
|
Gross carrying amount: |
|
|
|
|
|
|
|
|
Balance, December 31, 2012 |
269 |
|
3,309 |
|
66 |
|
3,644 |
|
Addition - acquired separately: |
|
|
|
|
|
|
|
|
The Company’s software |
- |
|
45 |
|
- |
|
45 |
|
The subsidiaries’ software |
- |
|
243 |
|
- |
|
243 |
|
License |
- |
|
- |
|
1 |
|
1 |
|
Other Intangible assets |
- |
|
58 |
|
- |
|
58 |
|
Reclassifications |
- |
|
(38 |
) |
- |
|
(38 |
) |
Deductions |
- |
|
(6 |
) |
- |
|
(6 |
) |
Balance, June 30, 2013 |
269 |
|
3,611 |
|
67 |
|
3,947 |
|
Accumulated amortization: |
|
|
|
|
|
|
|
|
Balance, December 31, 2012 |
(29 |
) |
(2,141 |
) |
(31 |
) |
(2,201 |
) |
Amortization expense during the year |
- |
|
(251 |
) |
(3 |
) |
(254 |
) |
Reclassifications |
- |
|
27 |
|
- |
|
27 |
|
Deduction |
- |
|
6 |
|
- |
|
6 |
|
Balance, June 30, 2013 |
(29 |
) |
(2,359 |
) |
(34 |
) |
(2,422 |
) |
Net Book Value |
240 |
|
1,252 |
|
33 |
|
1,525 |
|
|
|
|
|
|
|
|
|
|
Weighted-average amortization period |
|
|
7.52 years |
|
9.40 years |
|
|
|
53
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
12. INTANGIBLE ASSETS (continued)
|
Goodwill |
|
Other intangible assets |
|
License |
|
Total |
|
Gross carrying amount: |
|
|
|
|
|
|
|
|
Balance, December 31, 2011 |
192 |
|
2,769 |
|
815 |
|
3,776 |
|
Addition - acquired separately: |
|
|
|
|
|
|
|
|
The Company’s software |
- |
|
103 |
|
- |
|
103 |
|
The subsidiaries’ software |
- |
|
334 |
|
- |
|
334 |
|
Acquisition of BDM’s Data Center (Note 1d) |
77 |
|
3 |
|
- |
|
80 |
|
Reclassifications |
- |
|
158 |
|
(749 |
) |
(591 |
) |
Deductions |
- |
|
(58 |
) |
- |
|
(58 |
) |
Balance, December 31, 2012 |
269 |
|
3,309 |
|
66 |
|
3,644 |
|
Accumulated amortization: |
|
|
|
|
|
|
|
|
Balance, December 31, 2011 |
(29 |
) |
(1,619 |
) |
(339 |
) |
(1,987 |
) |
Amortization expense during the year |
- |
|
(460 |
) |
(6 |
) |
(466 |
) |
Reclassifications |
- |
|
(120 |
) |
314 |
|
194 |
|
Deductions |
- |
|
58 |
|
- |
|
58 |
|
Balance, December 31, 2012 |
(29 |
) |
(2,141 |
) |
(31 |
) |
(2,201 |
) |
Net Book Value |
240 |
|
1,168 |
|
35 |
|
1,443 |
|
|
|
|
|
|
|
|
|
|
Weighted-average amortization period |
|
|
7.21 years |
|
10.43 years |
|
|
|
(ii) Goodwill resulted from Sales Purchase transaction of data center business between Sigma and BDM in 2012 (Note 1d), acquisition of Ad Medika in 2010, Indonusa in 2008 and Sigma in 2008. Other intangible assets included land rights (Note 2n) and also included the acquisitions of Dayamitra, Pramindo, TII, KSO IV and KSO VII, and represented the rights to operate the business in the KSO areas. In connection with the expiration of the KSO agreement term, the gross carrying amount and the accumulated amortization of the intangible assets had been derecognized.
(iii) The estimated annual amortization expense of other intangible assets from July 1, 2013 is approximately Rp469 billion. The remaining amortization period of intangible assets excluding land rights is ranging from 1 to 19 years.
(iv) The aggregate amounts of goodwill allocated to each CGU are as follows:
|
December 31 2012 |
|
Sigma |
88 |
|
Ad Medika |
82 |
|
Total |
170 |
|
Metra performed its annual impairment tests on those CGUs based on fair value less cost to sell using discounted cash flow projections. The impairment tests used management approved cash flows projections covering a five-year period, and the following key assumptions:
|
December 31, 2012 |
| ||
|
Sigma |
|
Ad Medika |
|
Discount rate |
11.8% |
|
11.5% |
|
Perpetuity growth rate |
4.5% |
|
4.5% |
|
54
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
12. INTANGIBLE ASSETS (continued)
As of December 31, 2012, no impairment charge was required for goodwill on acquisition of subsidiaries, with any reasonably possible changes to the key assumptions applied not likely to cause the carrying amounts of the CGUs to exceed their recoverable amounts.
(v) As of June 30, 2013 and December 31, 2012, the gross carrying amount of fully amortized intangible assets that are still in use in operation amounted to Rp885 billion and Rp821 billion, respectively.
13. TRADE PAYABLES
|
June 30, 2013 |
|
December 31, 2012 |
|
Related parties |
|
|
|
|
Purchases of equipment, materials and services |
1,094 |
|
412 |
|
Payables to other telecommunications providers |
148 |
|
20 |
|
Sub total |
1,242 |
|
432 |
|
Third parties |
|
|
|
|
Purchases of equipment, materials and services |
6,113 |
|
6,023 |
|
Radio frequency usage charges, concession fees and Universal Service Obligation charges |
780 |
|
621 |
|
Payables to other telecommunications providers |
181 |
|
204 |
|
Sub total |
7,074 |
|
6,848 |
|
Total |
8,316 |
|
7,280 |
|
Trade payables by currency are as follows:
|
June 30, 2013 |
|
December 31, 2012 |
|
Rupiah |
5,344 |
|
4,146 |
|
U.S. Dollar |
2,950 |
|
3,111 |
|
Others |
22 |
|
23 |
|
Total |
8,316 |
|
7,280 |
|
Refer to Note 37 for details of related party transactions.
55
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
14. ACCRUED EXPENSES
|
June 30, 2013 |
|
December 31, 2012 |
|
Operations, maintenance and telecommunications services |
3,656 |
|
2,917 |
|
General, administrative and marketing |
911 |
|
882 |
|
Salaries and benefits |
896 |
|
1,491 |
|
Interest and bank charges |
159 |
|
174 |
|
Early retirement program |
- |
|
699 |
|
Total |
5,622 |
|
6,163 |
|
Accruals for early retirement program arose from the Decision of Human Capital and General Affairs Director No. PR.206.01/r.02/PD000/COP-B0010000/2012 on early retirement program dated November 1, 2012 and communicated to the employees on the same date. The Company estimated the accrual on the basis of the number of eligible employees that met the criteria stipulated in the Company’s regulation related to this program. Accrued early retirement benefits as of December 31, 2012 amounted to Rp699 billion was charged to the 2012 consolidated statement of comprehensive income (Note 27).
Refer to Note 37 for details of related party transactions.
15. UNEARNED INCOME
|
June 30, 2013 |
|
December 31, 2012 |
|
Prepaid pulse reload vouchers |
2,799 |
|
2,352 |
|
Other telecommunications services |
118 |
|
132 |
|
Others (each below Rp50 billion) |
150 |
|
245 |
|
Total |
3,067 |
|
2,729 |
|
16. SHORT-TERM BANK LOANS
|
|
|
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
|
|
|
Outstanding |
|
Outstanding |
| ||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Bank CIMB Niaga |
|
Rp |
|
- |
|
167 |
|
- |
|
20 |
|
BRI |
|
Rp |
|
- |
|
50 |
|
- |
|
0 |
|
Others |
|
Rp |
|
- |
|
29 |
|
- |
|
13 |
|
|
|
US$ |
|
|
|
11 |
|
0.42 |
|
4 |
|
Total |
|
|
|
|
|
257 |
|
|
|
37 |
|
Refer to Note 37 for details of related party transactions.
56
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
16. SHORT-TERM BANK LOANS (continued)
Other significant information relating to short-term bank loans as at June 30, 2013 is as follows:
|
Borrower |
|
Currency |
|
Total facility (in billions) |
|
Maturity Date |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
Bank CIMB Niaga |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 25, 2005 |
Balebat |
|
Rp |
|
12 |
|
May 29, 2013 |
|
Monthly |
|
10.50% |
|
Property and equipment (Note 10),inventories(Note 6), and trade receivables (Note 5) |
|
April 29, 2008 |
Balebat |
|
Rp |
|
10 |
|
May 29, 2013 |
|
Monthly |
|
10.50% |
|
Property and equipment (Note 10),inventories(Note 6), and trade receivables (Note 5) |
|
March 9, 2013 |
Infomedia |
|
Rp |
|
38 |
|
October 9, 2013 |
|
Monthly |
|
9.50% |
|
Piutang usaha(Note 5) Piutang usaha(Note 5) |
|
March 22,2013 |
Infomedia |
|
Rp |
|
38 |
|
October 22, 2013 |
|
Monthly |
|
9.50% |
|
|
|
April, 2013 |
GSD |
|
Rp |
|
58 |
|
December 31, 2013 |
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10) |
|
BRI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 8,2013 |
Infomedia |
|
Rp |
|
50 |
|
March 8, 2014 |
|
Monthly |
|
9.00% |
|
Piutang usaha (Note 5) |
|
The credit facilities obtained by the Company’s subsidiaries are used for working capital purposes.
a Based on the latest amendment on October 10, 2012.
17. CURRENT MATURITIES OF LONG-TERM LIABILITIES
a. Current maturities
|
Notes |
|
June 30, 2013 |
|
December 31, 2012 |
|
Bank loans |
20 |
|
4,327 |
|
4,475 |
|
Obligations under finance leases |
10 |
|
552 |
|
510 |
|
Bonds and notes |
19 |
|
335 |
|
440 |
|
Two-step loans |
18 |
|
190 |
|
196 |
|
Total |
|
|
5,404 |
|
5,621 |
|
Refer to Note 37 for details of related party transactions.
57
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
17. CURRENT MATURITIES OF LONG-TERM LIABILITIES (continued)
b. Long-term portion
Scheduled principal payments as of June 30, 2013 are as follows:
|
|
|
|
|
Year |
| ||||||||
|
Notes |
|
Total |
|
2014 |
|
2015 |
|
2016 |
|
2017 |
|
Thereafter |
|
Bank loans |
20 |
|
6,730 |
|
1,739 |
|
2,745 |
|
978 |
|
820 |
|
448 |
|
Bonds and notes |
19 |
|
3,111 |
|
80 |
|
1,036 |
|
- |
|
|
|
1,995 |
|
Two-step loans |
18 |
|
1,609 |
|
96 |
|
193 |
|
196 |
|
198 |
|
926 |
|
Obligations under finance leases |
10 |
|
2,754 |
|
246 |
|
361 |
|
345 |
|
359 |
|
1,443 |
|
Total |
|
|
14,204 |
|
2,161 |
|
4,335 |
|
1,519 |
|
1,377 |
|
4,812 |
|
18. TWO-STEP LOANS
Two-step loans are unsecured loans obtained by the Government which are then re-loaned to the Company. The loans entered into up to July 1994 were recorded and payable in Rupiah based on the exchange rate at the date of drawdown. Loans entered into after July 1994 are payable in their original currencies and any resulting foreign exchange gain or loss is borne by the Company.
|
|
|
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
|
|
|
Outstanding |
|
Outstanding |
| ||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Overseas banks |
|
Yen |
|
8,831 |
|
886 |
|
9,215 |
|
1,031 |
|
|
|
Rp |
|
0 |
|
542 |
|
- |
|
574 |
|
|
|
US$ |
|
37 |
|
371 |
|
40 |
|
382 |
|
Total |
|
|
|
|
|
1,799 |
|
|
|
1,987 |
|
Current maturities (Note 17a) |
|
|
|
|
|
(190 |
) |
|
|
(196 |
) |
Long-term portion (Note 17b) |
|
|
|
|
|
1,609 |
|
|
|
1,791 |
|
|
|
|
|
|
|
|
|
|
|
Lenders |
|
Currency |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Overseas banks |
|
US$ |
|
Semi-annually |
|
Semi-annually |
|
4.00% |
|
|
|
Rp |
|
Semi-annually |
|
Semi-annually |
|
6.75% |
|
|
|
Yen |
|
Semi-annually |
|
Semi-annually |
|
3.10% |
|
The loans are intended for the development of telecommunications infrastructure and supporting telecommunication equipment. The loans are payable in semi-annual installments and are due on various dates through 2024.
58
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
18. TWO-STEP LOANS (continued)
Since 2008, the Company has used all facilities under the two-step loans program and the drawdown period for the two-step loans has expired.
The Company is required to maintain financial ratios as follows:
a. Projected net revenue to projected debt service ratio should exceed 1.2:1 for the two-step loans originating from Asian Development Bank (“ADB”).
b. Internal financing (earnings before depreciation and finance costs) should exceed 20% compared to annual average capital expenditures for loans originating from ADB.
As of June 30, 2013, the Company complied with the above mentioned ratios.
Refer to Note 37 for details of related party transactions.
19. BONDS AND NOTES
|
|
|
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
|
|
|
Outstanding |
|
Outstanding |
| ||||
Bonds and notes |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Bonds |
|
|
|
- |
|
|
|
|
|
|
|
Series A |
|
Rp |
|
|
|
1,005 |
|
- |
|
1,005 |
|
Series B |
|
Rp |
|
- |
|
1,995 |
|
- |
|
1,995 |
|
Medium Term Notes (“MTN” ) |
|
|
|
|
|
|
|
|
|
|
|
PT Finnet Indonesia (“Finnet”) |
|
Rp |
|
- |
|
0 |
|
- |
|
8 |
|
Promissory Notes |
|
|
|
|
|
|
|
|
|
|
|
PT Huawei |
|
US$ |
|
29 |
|
291 |
|
46 |
|
445 |
|
PT ZTE Indonesia (“ZTE”) |
|
US$ |
|
16 |
|
155 |
|
22 |
|
216 |
|
Total |
|
|
|
|
|
3,446 |
|
|
|
3,669 |
|
Current maturities (Note 17a) |
|
|
|
|
|
(335 |
) |
|
|
(440 |
) |
Long-term portion (Note 17b) |
|
|
|
|
|
3,111 |
|
|
|
3,229 |
|
a. Bonds
Bonds |
|
Principal |
|
Issuer |
|
Listed on |
|
Issuance date |
|
Maturity date |
|
Interest payment period |
|
Interest rate per annum |
|
Series A |
|
1,005 |
|
The Company |
|
IDX |
|
June 25, 2010 |
|
July 6, 2015 |
|
Quarterly |
|
9.60% |
|
Series B |
|
1,995 |
|
The Company |
|
IDX |
|
June 25, 2010 |
|
July 6, 2020 |
|
Quarterly |
|
10.20% |
|
Total |
|
3,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The bonds are secured by all of the Company’s assets, movable or non-movable, either existing or in the future (Note 10c.x). The underwriters of the bonds are Bahana, PT Danareksa Sekuritas and PT Mandiri Sekuritas and the trustee is PT CIMB Niaga Tbk.
The Company received the proceeds of the issuance of bonds on July 6, 2010.
59
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
19. BONDS AND NOTES (continued)
a. Bonds (continued)
The funds received from public offering of bonds net of issuance costs, are to be used for increasing capital expenditure which consisted of: wave broadband (bandwidth, softswitching, datacom, information technology and others), infrastructure (backbone, metro network, regional metro junction, internet protocol, and satellite system) and optimizing legacy and supporting facilities (fixed wireline and wireless).
As of June 30, 2013, the rating of the bonds issued by PT Pemeringkat Efek Indonesia (Pefindo) is idAAA (stable outlook).
Based on indenture trusts agreement, the Company is required to comply with all covenants or restrictions including maintaining financial ratios as follows:
1. Debt to equity ratio should not exceed 2:1.
2. EBITDA to finance costs ratio should not be less than 5:1.
3. Debt service coverage is 125%.
As of June 30, 2013, the Company complied with the above mentioned ratios.
b. MTN
Notes |
|
Principal (Rp) |
|
Issuance date |
|
Maturity date |
|
Interest Payment period |
|
MTN |
|
|
|
|
|
|
|
|
|
Metra I* |
|
|
|
|
|
|
|
|
|
Phase 1 |
|
30 |
|
June 9, 2009 |
|
June 19, 2012 |
|
Quarterly |
|
Phase 2 |
|
20 |
|
February 1, 2010 |
|
February 2, 2013 |
|
Quarterly |
|
Metra II |
|
|
|
|
|
|
|
|
|
Phase 1 |
|
20 |
|
December 28, 2011 |
|
December 28, 2014 |
|
Quarterly |
|
Phase 2 |
|
10 |
|
February 22, 2012 |
|
February 22, 2015 |
|
Quarterly |
|
Sigma** |
|
30 |
|
November 17, 2009 |
|
November 17,2014 |
|
Semi-annually |
|
Finnet*** |
|
|
|
|
|
|
|
|
|
Phase 1 |
|
10 |
|
October 16, 2009 |
|
November 17, 2012 |
|
Monthly |
|
Phase 2 |
|
15 |
|
March 18, 2010 |
|
March 24, 2013 |
|
Monthly |
|
* ** |
In December 2012, the MTN was fully repaid by Metra through refinancing with BNI (Note 20). In May 2012, the MTN was fully repaid by Sigma. |
*** |
In March 2013, the MTN was fully repaid by Finnet |
The Arranger of the Medium Term Notes is Bahana, with Bank Mega acting as Trustee, and KSEI is acting as Collecting Agent and Custodian. Proceeds from the issuance of MTN were used to, among others expand the business and for working capital.
Metra secures a minimum value of 40% of the outstanding MTN principal. The maximum value of 60% of the outstanding MTN principal is unsecured and at all times ranked (pari passu) with other unsecured debts of Metra. Metra may buy back all or part of the MTN at any time before the maturity date of the MTN.
The MTN of Sigma and Finnet are not secured by a specific collateral, but secured by all of Sigma’s and Finnet’s assets, movable or non-movable, either existing or in the future (Note 10c.x) which become a collateral to MTN holders and at all times ranked (pari passu) without any preference other creditor privileges in accordance with prevailing regulations. Sigma and Finnet may buy back all or part of the MTN at any time before the maturity date of MTN.
Refer to Note 37 for details of related party transactions.
60
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
19. BONDS AND NOTES (continued)
c. Promissory Notes
Supplier |
|
Currency |
|
Principal |
|
Issuance date |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
PT Huawei |
|
US$ |
|
0.3 |
|
June 19, 2009 |
|
Semi-annually (April 12, 2013 -, June 28, 2015) |
|
Semi-annually |
|
6 month LIBOR+2.5% |
|
PT ZTE Indonesia(“ZTE”) |
|
US$ |
|
0.1 |
|
August 20, 2009 |
|
Semi-annually (May 10, 2013 -, June 10, 2015) |
|
Semi-annually |
|
6 month LIBOR+1.5% 6 month LIBOR+2.5% |
|
Based on Agreement of Frame Supply and Deferred Payment Arrangement between the Company and ZTE and PT Huawei, the promissory notes issued by the Company to ZTE and PT Huawei are unsecured supplier financing facilities covering 85% of Hand Over Report (“Berita Acara Serah Terima”) projects with ZTE and PT Huawei.
20. BANK LOANS
|
|
|
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
|
|
|
Outstanding |
|
Outstanding |
| ||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
BRI |
|
Rp |
|
- |
|
3,557 |
|
- |
|
4,011 |
|
Syndication of banks |
|
Rp |
|
- |
|
2,764 |
|
- |
|
1,950 |
|
BNI |
|
Rp. |
|
- |
|
1,440 |
|
- |
|
1,201 |
|
BCA |
|
Rp |
|
- |
|
1,211 |
|
- |
|
1,564 |
|
Bank Mandiri |
|
Rp |
|
- |
|
1,069 |
|
- |
|
1,417 |
|
ABN Amro Bank N.V. |
|
|
|
|
|
|
|
|
|
|
|
Stockholm Branch (“AAB Stockholm”) and Standard Chartered Bank |
|
US$ |
|
60 |
|
593 |
|
68 |
|
659 |
|
Japan Bank for International Cooperation (“JBIC”) |
|
US$ |
|
24 |
|
238 |
|
30 |
|
289 |
|
Bank CIMB Niaga |
|
Rp |
|
- |
|
248 |
|
- |
|
174 |
|
PT Bank Ekonomi Raharja Tbk (“Bank Ekonomi”) |
|
Rp |
|
- |
|
- |
|
- |
|
41 |
|
|
|
US$ |
|
- |
|
- |
|
- |
|
3 |
|
Others (each below Rp10 billion) |
|
Rp |
|
- |
|
1 |
|
- |
|
- |
|
Total |
|
|
|
|
|
11,121 |
|
|
|
11,309 |
|
Unamortized debt issuance cost |
|
|
|
|
|
(64 |
) |
|
|
(51 |
) |
|
|
|
|
|
|
11,057 |
|
|
|
11,258 |
|
Current maturities (Note 17a) |
|
|
|
|
|
(4,327 |
) |
|
|
(4,475 |
) |
Long-term portion (Note 17b) |
|
|
|
|
|
6,730 |
|
|
|
6,783 |
|
Refer to Note 37 for details of related party transactions.
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
Other significant information relating to bank loans as of June 30, 2013 is as follows:
|
|
Borrower |
|
Currency |
|
Total facility (in billions) |
|
Current period payment |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
Syndication of banks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 29, 2008a (BNI, BRI and BJB) |
|
The Company |
|
Rp |
|
2,400 |
|
300 |
|
Semi-annually(2010 - 2013) |
|
Quarterly |
|
3 months JIBOR+1.20% |
|
None |
|
June 16, 2009a (BNI and BRI) |
|
The Company |
|
Rp |
|
2,700 |
|
338 |
|
Semi-annually(2011 - 2014)
|
|
Quarterly |
|
3 months JIBOR+2.45%
|
|
None |
|
December 19, 2012 (BNI, BRI and Bank Mandiri) |
|
DMT |
|
Rp |
|
2,500 |
|
80 |
|
Semi annually(2014-2020) |
|
Quarterly |
|
3 months JIBOR + 3.00% |
|
Property and equipment(Note 10) and trade receivables (Note 5) |
|
BCA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 5, 2010b&c |
|
Telkomsel |
|
Rp |
|
2,000 |
|
333 |
|
Semi-annually(2012 - 2016) |
|
Quarterly |
|
3 months JIBOR+1.20% |
|
None |
|
December 16, 2010a |
|
TII |
|
Rp |
|
200 |
|
20 |
|
Semi-annually(2011 - 2015) |
|
Quarterly |
|
3 months JIBOR+1.25% |
|
None |
|
Bank Mandiri July 5, 2010b&c |
|
Telkomsel |
|
Rp |
|
3,000 |
|
347 |
|
Semi-annually(2012 - 2016) |
|
Quarterly |
|
3 months JIBOR+1.20% |
|
None |
|
BRI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 13, 2010a |
|
The Company |
|
Rp |
|
3,000 |
|
500 |
|
Semi-annually(2013 - 2015) |
|
Quarterly |
|
3 months JIBOR+1.25% |
|
None |
|
July 20, 2011a |
|
Dayamitra |
|
Rp |
|
1,000 |
|
80 |
|
Semi-annually(2011 - 2017) |
|
Quarterly |
|
3 months JIBOR+1.40% |
|
Property and equipment (Note 10) |
|
April 17, 2012 a&j |
|
Indonusa |
|
Rp |
|
225 |
|
11 |
|
Semi-annually(2013 - 2017) |
|
Quarterly |
|
3 months JIBOR+3.76% |
|
Indonusa’s cash flows |
|
April 23, 2013 |
|
GSD |
|
Rp |
|
150 |
|
- |
|
Monthly(2014-2018) |
|
Monthly |
|
8.75% |
|
Property and Equipment (Note 10) and trade receivable (Note 5) |
|
ABN Amro Bank N.V. Stockholm Branch (“AAB Stockholm”) and Standard Chartered Bank |
|
Telkomsel |
|
US$ |
|
0.3 |
|
0 |
|
Semi-annually(2011- 2016) |
|
Semi-annually |
|
6 months LIBOR+0.82% |
|
None |
|
December 30, 2009b&d |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BNI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 13, 2010a |
|
The Company |
|
Rp |
|
1,000 |
|
143 |
|
Semi-annually(2013 - 2015) |
|
Quarterly |
|
3 months JIBOR+1.25% |
|
None |
|
December 23, 2011 a |
|
PIN |
|
Rp |
|
500 |
|
- |
|
Semi-annually(2013 - 2016) |
|
Quarterly |
|
3 months JIBOR+1.50% |
|
Inventories(Note 6) and trade receivables (Note 5) |
|
November 28, 2012a |
|
Metra |
|
Rp |
|
44 |
|
4 |
|
Annually(2013-2015) |
|
Monthly |
|
8% |
|
Property and equipment (Note 10) and trade receivables (Note 5) |
|
March 13, 2013a&h |
|
Metra |
|
Rp |
|
300 |
|
6 |
|
Monthly(2013-2015) |
|
Monthly |
|
1 month JIBOR +3.35% |
|
Property and equpment (Note 10) and trade receivables (Note 5). |
|
62
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
|
Borrower |
|
Currency |
|
Total facility (in billions) |
|
Current period payment |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
March 13, 2013a |
Metra |
|
Rp |
|
322 |
|
- |
|
Annually |
|
Monthly |
|
1 month JIBOR +3.35% |
|
Property and equpment (Note 10) and trade receivables (Note 5). |
|
March 13, 2013a |
Metra |
|
Rp |
|
374 |
|
- |
|
Annually |
|
Monthly |
|
1 month JIBOR +3.35% |
|
Property and equpment (Note 10) and trade receivables (Note 5). |
|
March 26, 2013a |
Metra |
|
Rp |
|
60 |
|
5 |
|
Quartely(2013-2016) |
|
Monthly |
|
8% |
|
Property and equpment (Note 10) and trade receivables (Note 5). |
|
Japan Bank for International Cooperation (“JBIC”) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 26, 2010a&e |
The Company |
|
US$ |
|
0.06 |
|
0 |
|
Semi-annually(2010 - 2015) |
|
Semi-annually |
|
4.56% and 6 months LIBOR+0.70%
|
|
None |
|
Bank CIMB Niaga March 21, 2007f |
GSD |
|
Rp |
|
21 |
|
2 |
|
Quarterly(2007 - 2015)
|
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10) and equipment (Note 10), inventories (Note 6), and trade receivables (Note 5) |
|
July 28, 2009g |
Balebat |
|
Rp |
|
2 |
|
0.3 |
|
Monthly(2010 - 2014) |
|
Monthly |
|
11.00% |
|
Property (Note 10), inventories (Note 6), and trade receivables (Note 5) |
|
May 24, 2010 g |
Balebat |
|
Rp |
|
2 |
|
0.3 |
|
Monthly(2010 - 2015)
|
|
Monthly |
|
11.00% |
|
Property and equipment (Note 10), inventories (Note 6), and trade receivables (Note 5) |
|
March 31, 2011 |
GSD |
|
Rp |
|
24 |
|
1 |
|
Monthly(2011 - 2019)
|
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10) |
|
March 31, 2011 |
GSD |
|
Rp |
|
13 |
|
1 |
|
Monthly(2011 - 2019)
|
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10)
|
|
March 31, 2011 |
GSD |
|
Rp |
|
12 |
|
1 |
|
Monthly(2011 - 2015)
|
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10)
|
|
September 9, 2011 |
GSD |
|
Rp |
|
41 |
|
2 |
|
Monthly(2011 - 2021) |
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10) |
|
63
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
|
Borrower |
|
Currency |
|
Total facility(in billions) |
|
Current period payment |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
Bank CIMB Niaga (continued) September 9, 2011 |
GSD |
|
Rp |
|
11 |
|
2 |
|
Monthly(2011 - 2015) |
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10)
|
|
August 2, 2012g |
Balebat |
|
Rp |
|
4 |
|
1 |
|
Monthly(2012 - 2015) |
|
Monthly |
|
10.50% |
|
Property and equipment (Note 10), inventories (Note 6) and trade receivables (Note 5)
|
|
September 20, 2012 a |
TLT |
|
Rp |
|
1,150 |
|
- |
|
Monthly(2015 - 2030) |
|
Monthly |
|
3 months |
|
Property and equipment (Note 10),
|
|
September 20, 2012 a |
TLT |
|
Rp |
|
118 |
|
- |
|
Monthly(2015 - 2030) |
|
Monthly |
|
9.00% |
|
Property and equipment (Note 10),
|
|
October 10, 2012 g |
Balebat |
|
Rp |
|
1 |
|
0.2 |
|
Monthly(2012 - 2015) |
|
Monthly |
|
10.50% |
|
Property and equipment (Note 10), inventories (Note 6) and trade receivables (Note 5) |
|
Bank Ekonomi September 10, 2008a&h |
Sigma |
|
Rp |
|
33 |
|
15 |
|
Monthly(2009 - 2015) |
|
Monthly |
|
9.00%-10.50% |
|
Property and equipment (Note 10), and trade receivables (Note 5)
|
|
August 7, 2009a&h |
Sigma |
|
Rp |
|
35 |
|
3 |
|
Monthly some installment (2009- 2013) |
|
Monthly |
|
9.00%-10.50% |
|
Property and equipment (Note 10) and trade receivables (Note 5)
|
|
August 7, 2009a&h |
Sigma |
|
Rp |
|
20 |
|
7 |
|
Monthly some installment (2009 - 2014) |
|
Monthly |
|
9.00%-10.50% |
|
Property and equipment (Note 10), and trade receivables (Note 5)
|
|
February 23, 2011a&h |
Sigma |
|
Rp |
|
30 |
|
16 |
|
Monthly(2011 - 2015) |
|
Monthly |
|
9.00%-10.50% |
|
Property and equipment (Note 10), and trade receivables (Note 5)
|
|
February 23, 2011a&h |
Sigma |
|
US$ |
|
0.002 |
|
0.0003 |
|
Monthly(2011 - 2015) |
|
Monthly |
|
6.00% |
|
Property and equipment (Note 10), and trade receivables (Note 5) |
|
64
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
The credit facilities obtained by the Company and subsidiaries are used for working capital purposes.
a |
As stated in the agreements, the Company and subsidiaries are required to comply with all covenants or restrictions such as dividend distribution restrictions, new loans restriction, including maintaining financial ratios. As of Marchr 31, 2013, the Company and subsidiaries complied with the ratios. |
b |
Telkomsel has no collateral for its bank loans, or other credit facilities. The terms of the various agreements with Telkomsel’s lenders and financiers require compliance with a number of pledges and negative pledges as well as financial and other covenants, which include among other things, certain restrictions on the amount of dividends and other profit distributions which could adversely affect Telkomsel’s capacity to comply with its obligation under the facility. The terms of the relevant agreements also contain default and cross default clauses. As of June 30, 2013, Telkomsel complied with the above covenants |
c |
In January 2012, the availability periods of facilities from BCA and Bank Mandiri expired |
d |
Pursuant to the agreements with PT Ericsson Indonesia (“Ericsson Indonesia”) and Ericsson AB (Note 41a.ii), Telkomsel entered into an EKN-Backed Facility Agreement (“facility”) with ABN Amro Bank N.V. Stockholm branch (as “the original lender”) and Standard Chartered Bank (as “the original lender” , “the arranger”, “the facility agent” and “the EKN agent”), ABN Amro Bank N.V., Hong Kong (as “the arranger”) for the purchase of Ericsson telecommunication equipment and services. The facilities consist of facility 1, 2 and 3 amounting to US$117 million, US$106 million, and US$95 million, respectively. The availability period of facility 1, 2 and 3 expired in July 2010, March 2011 and November 2011, respectively. In October 2011, EKN agreed to reduce the premium of the unused facility by US$3 million through a cash refund. |
e |
In connection with the agreement with NSW-Fujitsu Consortium, the Company entered into a loan agreement with JBIC, the international arm of Japan Finance Corporation for the purchase of NSW-Fujitsu Consortium telecommunication equipment and services. The facilities consist of facility A and B amounting to US$36 million and US$24 million, respectively. |
f |
Based on the latest amendment on March 31, 2011. |
g |
Based on the latest amendment on October 10, 2012. |
h |
In March 2013, bank loan was fully repaid by Sigma through refinancing with BNI. |
i |
Based on the latest amendment on October 16, 2012, loan was required to be repaid by Indonusa on April 24, 2013. |
65
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
21. NON-CONTROLLING INTEREST
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Non-controlling interest in net assets of subsidiaries: |
|
|
|
|
Telkomsel |
13,667 |
|
15,340 |
|
Metra* |
63 |
|
66 |
|
GSD* |
53 |
|
31 |
|
Total |
13,783 |
|
15,437 |
|
|
2013 |
|
2012 |
|
Non-controlling interest in total comprehensive income (loss) of subsidiaries: |
|
|
|
|
Telkomsel |
3,002 |
|
2,551 |
|
Metra* |
8 |
|
10 |
|
GSD* |
(2 |
) |
0 |
|
Total |
3,008 |
|
2,561 |
|
* The amounts represent other third parties’ share of ownership in subsidiaries of Metra and GSD.
22. CAPITAL STOCK
|
|
June 30, 2013 |
| ||||
Description |
|
Number of shares |
|
Percentage of ownership |
|
Total paid-up capital |
|
Series A Dwiwarna share |
|
|
|
|
|
|
|
Government |
|
1 |
|
- |
|
0 |
|
Series B shares |
|
|
|
|
|
|
|
Government |
|
10,320,470,711 |
|
53.73 |
|
2,580 |
|
The Bank of New York Mellon Corporation* |
|
1,938,824,116 |
|
10.09 |
|
485 |
|
Directors (Note 1b): |
|
|
|
|
|
|
|
Indra Utoyo |
|
5,508 |
|
- |
|
0 |
|
Priyantono Rudito |
|
108 |
|
- |
|
0 |
|
Sukardi Silalahi |
|
108 |
|
- |
|
0 |
|
Public (individually less than 5%) |
|
6,949,579,668 |
|
36.18 |
|
1,737 |
|
Total |
|
19,208,880,220 |
|
100.00 |
|
4,802 |
|
Treasury stock (Note 24) |
|
951,119,060 |
|
- |
|
238 |
|
Total |
|
20,159,999,280 |
|
100.00 |
|
5,040 |
|
* The Bank of New York Mellon Corporation serves as the Depositary of registered ADS holders for the Company’s ADSs.
66
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
22. CAPITAL STOCK (continued)
|
|
December 31, 2012 |
| ||||
Description |
|
Number of shares |
|
Percentage of ownership |
|
Total paid-up capital |
|
Series A Dwiwarna share |
|
1 |
|
- |
|
0 |
|
Government |
|
|
|
|
|
|
|
Series B shares |
|
10,320,470,711 |
|
53.90 |
|
2,580 |
|
Government |
|
|
|
|
|
|
|
The Bank of New York Mellon Corporation* |
|
2,197,688,216 |
|
11.48 |
|
549 |
|
Directors (Note 1b): |
|
|
|
|
|
|
|
Indra Utoyo |
|
5,508 |
|
- |
|
0 |
|
Priyantono Rudito |
|
108 |
|
- |
|
0 |
|
Sukardi Silalahi |
|
108 |
|
- |
|
0 |
|
Public (individually less than 5%) |
|
6,630,904,168 |
|
34.62 |
|
1,658 |
|
Total |
|
19,149,068,820 |
|
100.00 |
|
4,787 |
|
Treasury stock (Note 24) |
|
1,010,930,460 |
|
- |
|
253 |
|
Total |
|
20,159,999,280 |
|
100.00 |
|
5,040 |
|
* The Bank of New York Mellon Corporation serves as the Depositary of registered ADS holders for the Company’s ADSs.
The Company issued only 1 Series A Dwiwarna share which is held by the Government and cannot be transferred to any party, and has a veto in the General Meeting of Stockholders of the Company with respect to election and removal of the Boards of Commissioners and Directors, issuance of new shares, and amendmend of the Company’s Articles of Association.
23. ADDITIONAL PAID-IN CAPITAL
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Proceeds from sale of 933,333,000 shares in excess of par value |
|
|
| |
through IPO in 1995 |
1,446 |
|
1,446 |
|
Capitalization into 746,666,640 Series B shares in 1999 |
(373 |
) |
(373 |
) |
Excess of value over cost of treasury stock |
208 |
|
- |
|
Total |
1,281 |
|
1,073 |
|
24. TREASURY STOCK
|
|
|
|
|
|
Maximum Purchase |
| ||
Phase |
|
Basis |
|
Period |
|
Number of Shares |
|
Amount |
|
I |
|
EGM |
|
December 21, 2005 - June 20, 2007 |
|
1,007,999,964 |
|
Rp5,250 |
|
II |
|
AGM |
|
June 29, 2007 - December, 28, 2008 |
|
215,000,000 |
|
Rp2,000 |
|
III |
|
AGM |
|
June 20, 2008 - December 20, 2009 |
|
339,443,313 |
|
Rp3,000 |
|
- |
|
BAPEPAM - LK |
|
October 13, 2008 - January 12, 2009 |
|
4,031,999,856 |
|
Rp3,000 |
|
IV |
|
AGM |
|
May 19, 2011 - November 20, 2012 |
|
645,161,290 |
|
Rp5,000 |
|
67
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
24. TREASURY STOCK (continued)
Movement in treasury stock as a result of share repurchase is as follows:
|
June 30, 2013 |
|
December 31, 2012 |
| ||||||||
|
Number of shares |
|
% |
|
Rp |
|
Number of shares |
|
% |
|
Rp |
|
Beginning balance |
1,010,930,460 |
|
5.01 |
|
8,067 |
|
773,659,960 |
|
3.84 |
|
6,323 |
|
Number of shares acquired |
- |
|
- |
|
- |
|
237,270,500 |
|
1.17 |
|
1,744 |
|
Transfer for employees ownership |
(59,811,400 |
) |
(0.29 |
) |
(433 |
) |
- |
|
- |
|
- |
|
Ending balance |
951,119,060 |
|
4.72 |
|
7,634 |
|
1,010,930,460 |
|
5.01 |
|
8,067 |
|
Pursuant to the AGM of Stockholders of the Company held on June 11, 2010, the stockholders approved the changes to the Company’s plan for use of the treasury stock as a result of the Share Buyback I, II and III, as follows: (i) market placement; (ii) cancellation; (iii) equity conversion and (iv) funding.
On June 14, 2013, the Company transferred a portion of the treasury stock to its employees as part of the 2012 annual incentives. The 59,811,400 treasury stock transferred had a total fair value of Rp641 billion. The excess of the transfer value of the treasury stock over their cost amounted Rp208 billion was credited to additional paid-in capital (Note 23).
25. DIFFERENCE IN VALUE ARISING FROM RESTRUCTURING TRANSACTIONS AND OTHER TRANSACTIONS BETWEEN ENTITIES UNDER COMMON CONTROL
The balance of this account amounting to Rp478 billion arose from the early termination of the Company’s exclusive rights to provide local and inter-local fixed line telecommunication services, for which the Company is required by the Government to use the funds received from this compensation for the development of telecommunication infrastructure. As of June 30, 2013 and December 31, 2012, the accumulated development of the related infrastructure amounted to Rp537 billion, respectively.
As of June 30, 2013 and December 31, 2012, the Company has received an aggregate of Rp478 billion, respectively, in relation to the compensation for the early termination of exclusivity rights, made up of annual payments by the Government from 2005 to 2008 of Rp90 billion, respectively, and Rp118 billion on August 25, 2009. The Company recorded these amounts in “Difference in value arising from restructuring transactions and other transactions between entities under common control” in the equity section of the consolidated statements of financial position. These amounts are recorded as a component of equity because the Government is the majority and controlling stockholder of the Company.
68
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
26. REVENUES
|
|
2013 |
|
2012 |
|
Telephone Revenues |
|
|
|
|
|
Cellular |
|
|
|
|
|
Usage charges |
|
14,694 |
|
14,065 |
|
Monthly subscription charges |
|
379 |
|
336 |
|
Features |
|
325 |
|
265 |
|
|
|
15,398 |
|
14,666 |
|
Fixed lines |
|
|
|
|
|
Usage charges |
|
3,324 |
|
3,892 |
|
Monthly subscription charges |
|
1,358 |
|
1,413 |
|
Call center |
|
151 |
|
141 |
|
Installation charges |
|
61 |
|
59 |
|
Others(each below Rp50 billion) |
|
119 |
|
60 |
|
|
|
5,013 |
|
5,565 |
|
Total Telephone Revenues |
|
20,411 |
|
20,231 |
|
Interconnection Revenues |
|
|
|
|
|
Domestic interconnection and transit |
|
1,475 |
|
1,130 |
|
International interconnection |
|
880 |
|
780 |
|
Total Interconnection Revenues |
|
2,355 |
|
1,910 |
|
Data, Internet, and Information Technology Services Revenues |
|
|
|
|
|
Internet, data communication and information technology services |
|
8,576 |
|
6,803 |
|
Short Messaging Services (“SMS”) |
|
6,363 |
|
5,805 |
|
VoIP |
|
53 |
|
116 |
|
e-Business |
|
47 |
|
18 |
|
Total Data, Internet, and Information Technology Services Revenues |
|
15,039 |
|
12,742 |
|
Network Revenues |
|
|
|
|
|
Leased lines |
|
419 |
|
416 |
|
Satellite transponder lease |
|
236 |
|
208 |
|
Total Network Revenues |
|
655 |
|
624 |
|
Other Telecommunications Services Revenues |
|
|
|
|
|
Customer Premise Equipment (“CPE”) and terminal |
|
637 |
|
418 |
|
Leases |
|
298 |
|
145 |
|
USO compensation |
|
190 |
|
105 |
|
Pay TV |
|
179 |
|
189 |
|
Directory assistance |
|
144 |
|
172 |
|
Sales of modem |
|
136 |
|
92 |
|
Others (each below Rp50 billion) |
|
116 |
|
92 |
|
Total Other Telecommunications Services Revenues |
|
1,700 |
|
1,213 |
|
TOTAL REVENUES |
|
40,160 |
|
36,720 |
|
69
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
26. REVENUES (continued)
The details of net revenues received by the Company and subsidiaries from agency relationships for six months period ended June 30, 2013 and 2012 follows:
|
2013 |
|
2012 |
|
Gross revenues |
8,689 |
|
6,976 |
|
Compensation to value added service providers |
(112 |
) |
(95 |
) |
Net revenues |
8,577 |
|
6,881 |
|
Refer to Note 37 for details of related party transactions.
27. PERSONNEL EXPENSES
|
2013 |
|
2012 |
|
Salaries and related benefits |
1,659 |
|
1,585 |
|
Vacation pay, incentives and other benefits |
1,441 |
|
1,403 |
|
Employees’ income tax |
612 |
|
514 |
|
Net periodic pension costs (Note 34) |
439 |
|
394 |
|
Net periodic post-retirement health care benefits costs (Note 36) |
187 |
|
45 |
|
Housing |
109 |
|
98 |
|
Insurance |
52 |
|
51 |
|
Others (each below Rp50 billion) |
106 |
|
75 |
|
Total |
4,605 |
|
4,165 |
|
Refer to Note 37 for details of related party transactions.
28. OPERATIONS, MAINTENANCE AND TELECOMMUNICATION SERVICES EXPENSES
|
2013 |
|
2012 |
|
Operations and maintenance |
5,535 |
|
4,714 |
|
Radio frequency usage charges (Notes 41c.i and 41c.ii) |
1,511 |
|
1,411 |
|
Concession fees and Universal Service Obligation charges |
765 |
|
662 |
|
Electricity, gas and water |
492 |
|
434 |
|
Cost of phone, set top box, SIM and RUIM cards |
435 |
|
362 |
|
Leased lines and CPE |
283 |
|
138 |
|
Vehicles rental and supporting facilities |
197 |
|
129 |
|
Insurance |
195 |
|
210 |
|
Cost of IT services |
190 |
|
80 |
|
Others (each below Rp50 billion) |
129 |
|
95 |
|
Total |
9,732 |
|
8,235 |
|
Refer to Note 37 for details of related party transactions.
70
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
29. GENERAL AND ADMINISTRATIVE EXPENSES
|
|
2013 |
|
2012 |
|
Provision for impairment of receivables and inventory obsolescence (Notes 5d and 6) |
|
419 |
|
465 |
|
General expenses |
|
345 |
|
262 |
|
Collection expenses |
|
187 |
|
164 |
|
Training, education and recruitment |
|
151 |
|
108 |
|
Travelling |
|
149 |
|
121 |
|
Professional fees |
|
87 |
|
93 |
|
Social contribution |
|
51 |
|
56 |
|
Others (each below Rp50 billion) |
|
249 |
|
178 |
|
Total |
|
1,638 |
|
1,447 |
|
Refer to Note 37 for details of related party transactions.
30. INTERCONNECTION EXPENSES
|
2013 |
|
2012 |
|
Domestic interconnection and transit |
1,761 |
|
1,565 |
|
International interconnection |
610 |
|
566 |
|
Total |
2,371 |
|
2,131 |
|
Refer to Note 37 for details of related party transactions.
31. TAXATION
a. Claims for tax refund
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Subsidiaries |
|
|
|
|
Import duties |
10 |
|
10 |
|
Corporate income tax |
6 |
|
18 |
|
Income tax |
|
|
|
|
Article 23 - Withholding tax on services delivery |
8 |
|
9 |
|
Value added tax (“VAT”) |
399 |
|
399 |
|
|
423 |
|
436 |
|
71
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
31. TAXATION (continued)
b. Prepaid taxes
|
Juni 30, 2013 |
|
December 31, 2012 |
|
The Company |
|
|
|
|
Corporate income tax |
55 |
|
- |
|
|
55 |
|
- |
|
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Subsidiaries |
|
|
|
|
Corporate income tax |
66 |
|
34 |
|
VAT |
344 |
|
336 |
|
Income tax |
|
|
|
|
Article 23 - Withholding tax on services delivery |
23 |
|
2 |
|
|
433 |
|
372 |
|
c. Taxes payable
|
Juni 30, 2013 |
|
December 31, 2012 |
|
The Company |
|
|
|
|
Income taxes |
|
|
|
|
Article 4 (2) - Final tax |
16 |
|
6 |
|
Article 21 - Individual income tax |
112 |
|
21 |
|
Article 22 – Withholding tax on goods delivery and imports |
2 |
|
- |
|
Article 23 - Withholding tax on services delivery |
58 |
|
10 |
|
Article 25 - Installment of corporate income tax |
0 |
|
30 |
|
Article 26 - Withholding tax on non-residents income tax |
607 |
|
3 |
|
Article 29 - Corporate income tax |
0 |
|
198 |
|
VAT |
406 |
|
374 |
|
|
1,201 |
|
642 |
|
Subsidiaries |
|
|
|
|
Income taxes |
|
|
|
|
Article 4 (2) - Final tax |
30 |
|
37 |
|
Article 21 - Individual income tax |
25 |
|
60 |
|
Article 23 - Withholding tax on services delivery |
31 |
|
32 |
|
Article 25 - Installment of corporate income tax |
448 |
|
378 |
|
Article 26 - Withholding tax on non-residents income tax |
6 |
|
18 |
|
Article 29 - Corporate income tax |
413 |
|
674 |
|
VAT |
52 |
|
3 |
|
|
1,005 |
|
1,202 |
|
|
2,206 |
|
1,844 |
|
72
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
31. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows:
|
2013 |
|
2012 |
|
Current |
|
|
|
|
The Company |
259 |
|
435 |
|
Subsidiaries |
2,928 |
|
2,795 |
|
|
3,187 |
|
3,230 |
|
Deferred |
|
|
|
|
The Company |
208 |
|
(25 |
) |
Subsidiaries |
29 |
|
(190 |
) |
|
237 |
|
(215 |
) |
|
3,424 |
|
3,015 |
|
e. Corporate income tax is computed for each company as a separate legal entity (computing corporate income tax on consolidated basis is not applicable in Indonesia).
The reconciliation between the accounting profit multiplied by the applicable tax rate and consolidated income tax expense is as follows:
|
2013 |
|
2012 |
|
Consolidated profit before income tax |
13,557 |
|
12,004 |
|
Tax calculated at applicable rate |
2,711 |
|
2,401 |
|
Equity in net earnings of subsidiaries before income tax and reversal of consolidation elimination of subsidiaries |
(1,200 |
) |
(1,029 |
) |
Tax effects on: |
|
|
|
|
Non-deductible expenses |
144 |
|
87 |
|
Non-taxable income |
(1,173 |
) |
(1,018 |
) |
Income subject to final tax and final income tax expense |
(15 |
) |
(23 |
) |
Others |
- |
|
(8 |
) |
Income tax expense of the subsidiaries |
2,957 |
|
2,605 |
|
Total income tax expense |
3,424 |
|
3,015 |
|
73
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
31. TAXATION (continued)
e. (continued)
The reconciliation between consolidated profit before income tax and the estimated taxable income for six months period ended June 30, 2013 and 2012 is as follows:
|
2013 |
|
2012 |
|
Consolidated profit before income tax |
13,557 |
|
12,004 |
|
Add back consolidation eliminations |
5,852 |
|
5,065 |
|
Consolidated profit before income tax and eliminations |
19,409 |
|
17,069 |
|
Less: profit before income tax of the subsidiaries |
(11,853 |
) |
|
|
Profit before income tax attributable to the Company |
7,556 |
|
6,857 |
|
Less: profit subject to final tax |
(204 |
) |
(190) |
|
|
7,352 |
|
6,667 |
|
Temporary differences: |
|
|
|
|
Depreciation and gain on sale of property and equipment |
271 |
|
128 |
|
Provision for impairment and trade receivables written-off |
(159 |
) |
(116 |
) |
Provision for personnel expenses |
(641 |
) |
(134 |
) |
Net periodic pension and other post-retirement benefits costs |
206 |
|
146 |
|
Provision for early retirement program |
(699 |
) |
0 |
|
Deferred installation fee |
(20 |
) |
(39 |
) |
Finance lease |
(22 |
) |
14 |
|
Other provisions |
25 |
|
85 |
|
Total temporary differences |
(1,039 |
) |
84 |
|
Permanent differences: |
|
|
|
|
Net periodic post-retirement health care benefit costs |
187 |
|
45 |
|
Employee benefits |
90 |
|
85 |
|
Donations |
103 |
|
96 |
|
Equity in net income of associates and subsidiaries |
(5,865 |
) |
(5,092 |
) |
Others |
338 |
|
209 |
|
Total permanent differences |
(5,147 |
) |
(4,657 |
) |
Taxable income |
1,116 |
|
2,094 |
|
Current corporate income tax expense |
233 |
|
419 |
|
Final income tax expense |
26 |
|
16 |
|
Total current income tax expense of the Company |
259 |
|
435 |
|
Current income tax expense of the subsidiaries |
2,928 |
|
2,795 |
|
Total current income tax expense |
3,187 |
|
3,230 |
|
74
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
31. TAXATION (continued)
e. (continued)
The Tax Law No. 36/2008 stipulates a reduction of 5% from the top rate applicable to qualifying listed companies, for those whose stocks are traded in the IDX which meet the prescribed criteria that the public own 40% or more of the total fully paid and traded stocks, and such stocks are owned by at least 300 parties, with each party owning less than 5% of the total paid-up stocks. These requirements must be met by a company for a period of 6 months in one tax year. The Company has met all of the required criteria, therefore, for purposes of calculating income tax expense and liabilities for the financial reporting periods for six months period ended June 30, 2013 and for the year ended December 31, 2012, the Company has reduced the applicable tax rate by 5%.
The Company applied a tax rate of 20% for six months period ended June 30, 2013 and for the year ended December 31, 2012. The subsidiaries applied a tax rate of 25% for six months period ended June 30, 2013 and for the year ended December 31, 2012.
f. Tax assessment
(i) The Company
The Directorate General of Tax (“DGT”) is assessing the Company’s withholding income taxes for fiscal year 2008 and as of the issuance date of the consolidated financial statements, the assessment is still in process.
(ii) Telkomsel
On February 25, 2009, the Tax Authorities filed a judicial review request to the Indonesian Supreme Court (“SC”) for the Tax Court’s acceptance of Telkomsel’s appeal for a refund of Rp115 billion withholding taxes covering the fiscal year 2002. On April 3, 2009, Telkomsel filed a contra-appeal to the SC. Based on its verdict which was received in November 2012, the SC decided to reject the request of the Tax Authorities. The SC verdict is legally binding in favor of Telkomsel.
On August 10, 2010, the Tax Authorities filed a judicial review request to the SC on the Tax Court’s verdict. On September 24, 2010, Telkomsel filed a contra-appeal to the SC. As of the issuance date of the consolidated financial statements, the judicial review is still in process.
On April 21, 2010, the Tax Court notified Telkomsel that the Tax Authorities have filed an appeal to the SC on the Tax Court’s verdict to cancel the Tax Collection Letter (STP) for the underpayment of income tax Article 25 for the period December 2008 of Rp429 billion (including a penalty of Rp8 billion). In May 2010, Telkomsel filed a contra-appeal to the SC. As of the issuance date of the consolidated financial statements, the appeal is still in process.
In 2010, Telkomsel was assessed for underpayments of corporate income tax, withholding taxes and VAT, for the fiscal year 2006 totalling Rp212 billion (including penalty of
Rp69 billion). In November 2010, Telkomsel paid the assessments and in December 2010, Telkomsel filed an objection to the DGT for the withholding tax and VAT assessments amounting to Rp116 billion (including a penalty of Rp38 billion) and recorded the payments as a claim for tax refund. A portion of the accepted assessment by the Company in the amount of Rp50 billion had been previously charged to the 2008 consolidated statement of comprehensive income while the remaining portion of Rp46 billion was charged to the 2010 consolidated statement of comprehensive income. Subsequently, in September 2011, the Tax Authorities rejected Telkomsel’s objection. In December 2011, Telkomsel filed an appeal to the Tax Court. As of the issuance date of the consolidated financial statements, the appeal is still in process.
75
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
31. TAXATION (continued)
f. Tax assessment (continued)
(ii) Telkomsel (continued)
In October and November 2010, Telkomsel received tax assessments (STPs) for the underpayments of income tax Article 25 for the fiscal year 2010 of Rp229 billion (including penalty of Rp11 billion). The STPs were paid in November and December 2010. The principal payment of Rp218 billion was considered as a tax prepayment in calculating the 2010 corporate income tax which at the end resulted in an overpayment of Rp599.87 billion. Through its letters in November 2010, Telkomsel requested the Tax Authorities to cancel the STPs. Subsequently, in April 2011, Telkomsel received STPs from the Tax Authorities which revised the above-mentioned STPs issued in October and November 2010 with an additional penalty of Rp4.3 billion.
On May 5, 2011, the Tax Authorities rejected Telkomsel’s request for cancellation of those STPs. Subsequently, on May 31, 2011, Telkomsel filed an appeal to the Tax Court. The overpayment and penalty are recognized as claims for tax refund. Based on its verdict in March 2012, the Tax Court approved the cancellation of the STPs. In May and June 2012, Telkomsel received the refund of the penalty of Rp15.7 billion. On July 17, 2012, the Tax Authorities filed a judicial review request to the SC. Subsequently, on September 14, 2012, Telkomsel filed a contra appeal to the SC. As of the issuance date of the consolidated financial statements, the appeal is still in process.
In August 2011, Telkomsel was assessed for underpayments of withholding taxes and VAT for the fiscal year 2008 totaling Rp235 billion. In September 2011, Telkomsel paid the assessments and in November 2011, Telkomsel filed an objection to the Tax Authorities for the VAT assessment amounting to Rp232 billion (including penalty of Rp81.9 billion) and recorded it as a claim for tax refund. The remaining portion of Rp3 billion was charged to the 2011 consolidated statement of comprehensive income. In August 2012, the Tax Court approved Telkomsel’s appeal on the VAT and the refund of all the claims.
On March 12, 2012, Telkomsel received Assessment Letters as a result of the tax audit for fiscal year 2010 by the Tax Authorities. Based on the letters, Telkomsel overpaid corporate income tax by Rp597.4 billion and underpaid VAT amounting to Rp302.7 billion (including a penalty of Rp73.3 billion). Telkomsel accepted the overpayment of corporate income tax and Rp12.1 billion underpayment of VAT (including a penalty of Rp6.3 billion). The portion accepted by Telkomsel was charged to the 2012 consolidated statement of comprehensive income. Telkomsel filed an objection to the Tax Authorities for underpayment of VAT of Rp290.6 billion (including a penalty of Rp67 billion) and recorded it as a claim for tax refund. As of the issuance date of the consolidated financial statements, the Tax Authorities have not yet issued their decision on the objection.
On April 5, 2012, Telkomsel received the refund of the overpayment of corporate income tax for fiscal year 2010 amounting to Rp294.7 billion, net of the underpayment of VAT.
76
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
31. TAXATION (continued)
g. Deferred tax assets and liabilities
The details of the Company and subsidiaries' deferred tax assets and liabilities are as follows:
|
|
December 31, 2012 |
|
(Charged) credited to the consolidated statements of comprehensive income |
|
Juni 30, 2013 |
|
The Company |
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
Provision for impairment of receivables |
|
276 |
|
(32 |
) |
244 |
|
Net periodic pension and other post-retirement |
|
|
|
|
|
|
|
benefits costs |
|
129 |
|
41 |
|
170 |
|
Accrued expenses and provision for inventory obsolescence |
|
22 |
|
1 |
|
23 |
|
Provision for early retirement expense |
|
140 |
|
(140 |
) |
0 |
|
Employee benefits provisions |
|
173 |
|
(128 |
) |
45 |
|
Deferred connection fee |
|
54 |
|
(4 |
) |
50 |
|
Total deferred tax assets |
|
794 |
|
(262 |
) |
532 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
Difference between accounting and tax property and equipment net book value |
|
(1,581 |
) |
53 |
|
(1,528 |
) |
Land rights, intangible assets, and others |
|
(14 |
) |
4 |
|
(10 |
) |
Finance leases |
|
(64 |
) |
(4 |
) |
(68 |
) |
Total deferred tax liabilities |
|
(1,659 |
) |
53 |
|
(1,606 |
) |
Deferred tax liabilities of the Company - net |
|
(865 |
) |
(209 |
) |
(1,074 |
) |
Telkomsel |
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
Provision for impairment of receivables |
|
117 |
|
27 |
|
144 |
|
Employee benefits provisions |
|
207 |
|
28 |
|
235 |
|
Recognition of interest under USO arrangements |
|
6 |
|
(2 |
) |
4 |
|
Total deferred tax assets |
|
330 |
|
53 |
|
383 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
Difference between accounting and tax property and equipment net book value |
|
(2,363 |
) |
(64 |
) |
(2,427 |
) |
Intangible assets |
|
(44 |
) |
(8 |
) |
(52 |
) |
Finance leases |
|
(22 |
) |
(13 |
) |
(35 |
) |
Total deferred tax liabilities |
|
(2,429 |
) |
(85 |
) |
(2,514 |
) |
Deferred tax liabilities of Telkomsel - net |
|
(2,099 |
) |
(32 |
) |
(2,131 |
) |
Deferred tax liabilities of other subsidiaries - net |
|
(95 |
) |
(38 |
) |
(133 |
) |
Total deferred tax liabilities - net |
|
(3,059 |
) |
(279 |
) |
(3,338 |
) |
Total deferred tax assets - net |
|
89 |
|
41 |
|
130 |
|
77
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
31. TAXATION (continued)
g. Deferred tax assets and liabilities (continued)
|
|
December 31, 2011 |
|
(Charged) credited to the consolidated statements of comprehensive income |
|
Realized to equity |
|
December 31, 2012 |
|
The Company |
|
|
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
|
Provision for impairment of receivables |
|
334 |
|
(58 |
) |
- |
|
276 |
|
Net periodic pension and other post-retirement benefits costs |
|
86 |
|
43 |
|
- |
|
129 |
|
Accrued expenses and provision for inventory obsolescence |
|
30 |
|
(8 |
) |
- |
|
22 |
|
Provision for early retirement expense |
|
- |
|
140 |
|
- |
|
140 |
|
Employee benefits provisions |
|
82 |
|
91 |
|
- |
|
173 |
|
Deferred connection fee |
|
85 |
|
(31 |
) |
- |
|
54 |
|
Total deferred tax assets |
|
617 |
|
177 |
|
- |
|
794 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
Difference between accounting and tax property and equipment net book value |
|
(1,929 |
) |
348 |
|
- |
|
(1,581 |
) |
Land rights, intangible assets, and others |
|
(21 |
) |
7 |
|
- |
|
(14 |
) |
Finance leases |
|
(33 |
) |
(31 |
) |
- |
|
(64 |
) |
Total deferred tax liabilities |
|
(1,983 |
) |
324 |
|
- |
|
(1,659 |
) |
Deferred tax liabilities of the Company - net |
|
(1,366 |
) |
501 |
|
- |
|
(865 |
) |
Telkomsel |
|
|
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
|
Provision for impairment of receivables |
|
64 |
|
53 |
|
- |
|
117 |
|
Employee benefits provisions |
|
151 |
|
56 |
|
- |
|
207 |
|
Recognition of interest under USO arrangements |
|
- |
|
6 |
|
- |
|
6 |
|
Total deferred tax assets |
|
215 |
|
115 |
|
- |
|
330 |
|
Telkomsel (continued) |
|
|
|
|
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
Difference between accounting and tax property and equipment net book value |
|
(2,529 |
) |
166 |
|
- |
|
(2,363 |
) |
Intangible assets |
|
(49 |
) |
5 |
|
- |
|
(44 |
) |
Finance leases |
|
- |
|
(22 |
) |
- |
|
(22 |
) |
Total deferred tax liabilities |
|
(2,578 |
) |
149 |
|
- |
|
(2,429 |
) |
Deferred tax liabilities of Telkomsel - net |
|
(2,363 |
) |
264 |
|
- |
|
(2,099 |
) |
Deferred tax liabilities of other subsidiaries - net |
|
(65 |
) |
(30 |
) |
- |
|
(95 |
) |
Total deferred tax liabilities - net |
|
(3,794 |
) |
735 |
|
- |
|
(3,059 |
) |
Total deferred tax assets - net |
|
67 |
|
27 |
|
(5 |
) |
89 |
|
78
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
31. TAXATION (continued)
g. Deferred tax assets and liabilities (continued)
As of June 30, 2013 and December 31, 2012, the aggregate amounts of temporary differences associated with investments in subsidiaries and associates, for which deferred tax liabilities have not been recognized are amounted to Rp17,378 billion and Rp20,317 billion, respectively.
Realization of the deferred tax assets is dependent upon Company and subsidiary’s capability in generating future profitable operations. Although realization is not assured, the Company and subsidiaries believe that it is probable that these deferred tax assets will be realized through reduction of future taxable income when temporary differences reverse. The amount of deferred tax assets is considered realizable, however, it could be reduced if actual future taxable income is lower than estimates.
h. Administration
Since 2008 to 2012, the Company has been consecutively entitled to income tax rate reduction of 5% for meeting the requirements in accordance with the Government Regulation No. 81/2007 in conjunction with the Ministry of Finance Regulation No. 238/PMK.03/2008. On the basis of historical data, for the year 2013, the Company calculates the deferred tax using the tax rate of 20%.
The taxation laws of Indonesia require that the Company and subsidiaries submit individual tax returns on the basis of self-assessment. Under prevailing regulations, the DGT may assess or amend taxes within a certain period. For fiscal years 2007 and before, this period is within ten years of the time the tax became due, but not later than 2013, while for fiscal years 2008 and onwards, the period is within five years of the time the tax becomes due.
The Minister of Finance of the Republic of Indonesia has issued Regulation No.85/PMK.03/2012 dated June 6, 2012 concerning the appointment of State-Owned Enterprises ("SOEs") to withhold, deposit and report VAT and Sales Tax on Luxury Goods ("PPnBM") according to the procedures outlined in the Regulation which is effective from July 1, 2012. The Minister of Finance of the Republic Indonesia also has issued Regulation No.224/PMK.011/2012 dated December 26, 2012 concerning the appointment of SOEs to withhold income tax article 22 which is effective from February 23, 2013. The Company has withheld, deposited, and reported the VAT and PPnBM or VAT and also income tax article 22 in accordance with the Regulation.
No tax audit has been conducted for fiscal years 2003, 2005, 2006, 2007, 2009 and 2010 on the Company. Tax audits have been completed for all other fiscal years, except for fiscal year 2011.
The Company received a certificate of tax audit exemption from the DGT for fiscal year 2007, 2008, 2009 and 2010, which is valid unless the Company files for corporate income tax overpayment, in which case a tax audit will be performed.
32. BASIC AND DILUTED EARNINGS PER SHARE
Basic and diluted earnings per share is computed by dividing profit for the year attributable to owners of the parent Company amounted to Rp7,125 and Rp6,428 by the weighted average number of shares outstanding during the period totaling 19,154,686,465 and 19,247,020,823 for six months periods ended June 30, 2013 and 2012, respectively.
Basic and diluted earnings per share amounted to Rp372.08 and Rp333.97 (in full amount) for six months periods ended June 30, 2013 and 2012, respectively
79
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
33. CASH DIVIDENDS AND GENERAL RESERVE
Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 14 dated May 11, 2012 of Ashoya Ratam,S.H.,MKn., the Company’s stockholders agree on the distribution of cash dividends and special cash dividends for 2011 amounting to Rp6,031 billion and Rp1,096 billion. On June 22, 2012, the Company paid cash dividend and special cash dividend totaling to Rp7,127 billion.
Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 38 dated April 19, 2013 of Ashoya Ratam,S.H.,MKn., the Company’s stockholders agree on the distribution of cash dividends and special cash dividends for 2012 amounting to Rp7,068 billion and Rp1,285 billion. On June 18, 2013, the Company paid cash dividend and special cash dividend totaling to Rp8,353 billion.
Appropriation of Retained Earnings
Under Limited Liability Company Law, the Company is required to establish a statutory reserve amounting to at least 20% of the issued and paid-up capital.
The balance of the appropriated retained earnings of the Company as of June 30, 2013 and December 31, 2012 was Rp15,337 billion, respectively.
34. RETIREMENT BENEFITS OBLIGATION
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Prepaid pension benefit costs |
|
|
|
|
The Company |
981 |
|
1,031 |
|
Infomedia |
0 |
|
1 |
|
Prepaid pension benefit costs |
981 |
|
1,032 |
|
Pension benefit cost provision and other post-employment benefit |
|
|
|
|
Pension |
|
|
|
|
The Company |
1,508 |
|
1,373 |
|
Telkomsel |
516 |
|
419 |
|
Pension benefit costs provisions |
2,024 |
|
1,792 |
|
Other post-retirement benefits |
330 |
|
310 |
|
Obligation under Labor Law |
159 |
|
146 |
|
Pension benefit cost provision and other post-employment benefit |
2,513 |
|
2,248 |
|
Net periodic pension costs |
|
|
|
|
The Company |
342 |
|
592 |
|
Telkomsel |
97 |
|
197 |
|
Infomedia |
0 |
|
0 |
|
Net periodic pension costs (Note 27) |
439 |
|
789 |
|
Other post-retirement benefit costs (Note 27) |
33 |
|
65 |
|
Employee benefit costs under Labor Law |
16 |
|
38 |
|
80
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
34. RETIREMENT BENEFITS OBLIGATION (continued)
a. Prepaid pension benefit costs
The Company sponsors a defined benefit pension plan to employees with permanent status prior to July 1, 2002. The pension benefits are paid based on the participating employees’ latest basic salary at retirement and the number of years of their service. The plan is managed by Telkom Pension Fund (“Dana Pensiun Telkom” or “Dapen”). The participating employees contribute 18% (before March 2003: 8.4%) of their basic salaries to the pension fund. The Company’s contributions to the pension fund for six months period ended June 30, 2013 and the years ended December 31, 2012 amounted to Rp93 billion and Rp186 billion, respectively.
The following table presents the change in projected pension benefits obligation, change in pension plan assets, funded status of the pension plan and net amount recognized in the Company’s consolidated statements of financial position as of June 30, 2013 and December 31, 2012, for its defined benefit pension plan:
|
Juni 30, 2013 |
|
December 31,2012 |
|
Change in projected pension benefits obligation |
|
|
|
|
Projected pension benefits obligation at beginning of year |
19,249 |
|
16,188 |
|
Service costs |
225 |
|
372 |
|
Interest costs |
591 |
|
1,151 |
|
Pension plan participants' contributions |
22 |
|
44 |
|
Actuarial losses |
(742 |
) |
2,123 |
|
Expected pension benefits paid |
(328 |
) |
(629 |
) |
Projected pension benefits obligation at end of period |
19,017 |
|
19,249 |
|
Change in pension plan assets |
|
|
|
|
Fair value of pension plan assets at beginning of year |
18,222 |
|
16,597 |
|
Expected return on pension plan assets |
743 |
|
1,517 |
|
Employer’s contributions |
93 |
|
186 |
|
Pension plan participants' contributions |
22 |
|
44 |
|
Actuarial gains |
(742 |
) |
507 |
|
Expected pension benefits paid |
(328 |
) |
(629 |
) |
Fair value of pension plan assets at end of period |
18,010 |
|
18,222 |
|
Funded status |
(1,007 |
) |
(1,027 |
) |
Unrecognized prior service costs |
147 |
|
217 |
|
Unrecognized net actuarial losses |
1,841 |
|
1,841 |
|
Prepaid pension benefit costs |
981 |
|
1,031 |
|
81
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
34. RETIREMENT BENEFITS OBLIGATION (continued)
a. Prepaid pension benefit costs (continued)
The expected return is determined based on market expectation for returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets was Rp1 billion and Rp2,024 billion for six months period ended June 30, 2013 and the years ended December 31, 2012.
The movements of the prepaid pension benefit costs during six months period ended June 30, 2013 and the years ended December 31, 2012 are as follows:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Prepaid pension benefits costs at beginning of year |
(1,031 |
) |
(990 |
) |
Net periodic pension costs less amounts charged to subsidiaries |
136 |
|
133 |
|
Amounts charged to subsidiaries under contractual agreements |
7 |
|
12 |
|
Employer’s contributions |
(93 |
) |
(186 |
) |
Prepaid pension benefits costs at end of period |
(981 |
) |
(1,031 |
) |
As of June 30, 2013 and December 31, 2012, plan assets mainly consisted of :
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Indonesian equity securities |
23.82% |
|
21.82% |
|
Government bonds |
35.68% |
|
37.96% |
|
Corporate bonds |
19.69% |
|
16.91% |
|
Others |
20.81% |
|
23.31% |
|
Total |
100.00% |
|
100.00% |
|
Pension plan assets also include Series B shares issued by the Company with fair value totaling Rp304 billion and Rp233 billion representing 1.69% and 1.23% of total plan assets as of June 30, 2013 and December 31, 2012, respectively, and bonds issued by the Company with fair value totaling Rp155 billion and Rp159 billion representing 0.86% and 0.87% of total plan assets as of June 30, 2013 and December 31, 2012, respectively.
The actuarial valuation for the defined benefit pension plan and the other post-retirement benefits (Notes 34b and 34c) was performed based on the measurement date as of December 31, 2012 and 2011, with reports dated February 28, 2013 and March 7, 2012, respectively, by PT Towers Watson Purbajaga (“TWP”), an independent actuary in association with Towers Watson (“TW”) (formerly Watson Wyatt Worldwide). The principal actuarial assumptions used by the independent actuary as of December 31, 2012 and 2011 are as follows:
82
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
34. RETIREMENT BENEFITS OBLIGATION (continued)
a. Prepaid pension benefit costs (continued)
|
December 31, 2012 |
|
December 31, 2011 |
|
Discount rate |
6.25% |
|
7.25% |
|
Expected long-term return on pension plan assets |
8.25% |
|
9.25% |
|
Rate of compensation increases |
8% |
|
8% |
|
The components of net periodic pension costs are as follows:
|
Juni 30, 2012 |
|
December 31, 2012 |
|
Service costs |
225 |
|
372 |
|
Interest costs |
591 |
|
1,151 |
|
Expected return on pension plan assets |
(743 |
) |
(1,517 |
) |
Amortization of prior service costs |
70 |
|
139 |
|
Net periodic pension costs |
143 |
|
145 |
|
Amount charged to subsidiaries under contractual agreements |
(7 |
) |
(12 |
) |
Total net periodic pension cost (benefits) less amounts charged to subsidiaries (Note 27) |
136 |
|
133 |
|
b. Pension benefit costs provisions
(i) The Company
The Company sponsors unfunded defined benefit pension plans and a defined contribution pension plan.
The defined contribution pension plan is provided to employees hired with permanent status on or after July 1, 2002. The plan is managed by Financial Institutions Pension Fund (“Dana Pensiun Lembaga Keuangan” or “DPLK”). The Company’s contribution to DPLK is determined based on a certain percentage of the participants’ salaries and amounted to Rp3 billion Rp5 billion for each of six months period ended June 30, 2013 and the years ended December 31, 2012, respectively.
Since 2007, the Company provides pension benefit based on uniformulation for both participants prior to and from April 20, 1992 effective for employees retiring beginning February 1, 2009. The change in benefit had increased the Company’s liabilities by Rp699 billion, which is amortized over 9.9 years until 2016. In 2010, the Company replaced the uniformulation with Manfaat Pensiun Sekaligus (“MPS”). MPS is given to those employees reaching retirement age, upon death or upon being disabled starting from February 1, 2009. The change in benefit had increased the Company’s liabilities by Rp435 billion, which is amortized over 8.63 years until 2018.
83
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
34. RETIREMENT BENEFITS OBLIGATION (continued)
b. Pension benefit costs provisions (continued)
(i) The Company (continued)
The Company also provides benefits to employees during a pre-retirement period in which they are inactive for 6 months prior to their normal retirement age of 56 years, known as pre-retirement benefits (“Masa Persiapan Pensiun” or “MPP”). During the pre-retirement period, the employees still receive benefits provided to active employees, which include, but are not limited to, regular salary, health care, annual leave, bonus and other benefits. Since 2012, the Company has issued a new requirement for MPP effective for employees retiring beginning April 1, 2012, whereby the employee is required to file a request for MPP and if the employee does not file the request, he or she is required to work until the retirement date.
The following table presents the change in projected benefits obligation of MPS and MPP for six months period ended June 30, 2013 and the years ended December 31, 2012:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Change in projected benefits obligation |
|
|
|
|
Unfunded projected benefits obligation at beginning of year |
2,436 |
|
2,440 |
|
Service costs |
48 |
|
104 |
|
Interest costs |
75 |
|
173 |
|
Actuarial gains |
(28 |
) |
(128 |
) |
Benefits paid by employer |
(42 |
) |
(153 |
) |
Unfunded projected benefits obligation at end of year |
2,489 |
|
2,436 |
|
Unrecognized prior service costs |
(573 |
) |
(639 |
) |
Unrecognized net actuarial losses |
(408 |
) |
(424 |
) |
Pension benefit costs provisions at end of period |
1,508 |
|
1,373 |
|
The movements of the pension benefit costs provisions during six months period ended June 30, 2013 and the years ended December 31, 2012:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Pension benefits costs provisions at beginning of year |
1,373 |
|
1,067 |
|
Net periodic pension costs |
206 |
|
459 |
|
Benefits paid by employer |
(71 |
) |
(153 |
) |
Pension benefits costs provisions at end of period |
1,508 |
|
1,373 |
|
84
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
34. RETIREMENT BENEFITS OBLIGATION (continued)
b. Pension benefit costs provisions (continued)
(i) The Company (continued)
The components of net periodic pension costs are as follows:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Service costs |
48 |
|
104 |
|
Interest costs |
75 |
|
173 |
|
Amortization of prior service costs |
66 |
|
133 |
|
Recognized actuarial losses |
17 |
|
49 |
|
Total net periodic pension costs (Note 27) |
206 |
|
459 |
|
(ii) Telkomsel
Telkomsel provides a defined benefit pension plan to its employees. Under this plan, employees are entitled to pension benefits based on their latest basic salary or take-home pay and the number of years of their service. PT Asuransi Jiwasraya (“Jiwasraya”), a state-owned life insurance company, manages the plan under an annuity insurance contract. Until 2004, the employees contributed 5% of their monthly salaries to the plan and Telkomsel contributed any remaining amount required to fund the plan. Starting 2005, the entire contributions are fully made by Telkomsel.
The reconciliation of the unfunded status of the plans with the amounts included in the consolidated statements of financial position as of June 30, 2013 and December 31, 2012 are as follows:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Projected benefits obligation |
(1,581 |
) |
(1,472 |
) |
Fair value of plan assets |
666 |
|
666 |
|
Funded status |
(915 |
) |
(806 |
) |
Unrecognized items in the consolidated statements of financial position: |
|
|
|
|
Unrecognized prior service costs |
0 |
|
0 |
|
Unrecognized net actuarial losses |
399 |
|
387 |
|
Pension benefits costs provisions |
(516 |
) |
(419 |
) |
85
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
34. RETIREMENT BENEFITS OBLIGATION (continued)
b. Pension benefit costs provisions (continued)
(ii) Telkomsel (continued)
The components of the net periodic pension costs are as follows:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Service costs |
65 |
|
119 |
|
Interest costs |
44 |
|
83 |
|
Expected return on pension plan assets |
(20 |
) |
(31 |
) |
Amortization of past service costs |
0 |
|
1 |
|
Recognized actuarial losses |
8 |
|
25 |
|
Net periodic pension costs (Note 27) |
97 |
|
197 |
|
The net periodic pension cost for the pension plan was calculated based on the measurement date as of December 31, 2012 and 2011, with reports dated February 12, 2013 and February 24, 2012, respectively, by TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary based on the measurement date as of December 31, 2012 and 2011 for each of the years, are as follows:
|
December 31, 2012 |
|
December 31, 2011 |
|
Discount rate |
6% |
|
6.75% |
|
Expected long-term return on plan assets |
6% |
|
6.75% |
|
Rate of compensation increases |
6.5% |
|
8% |
|
c. Other post-retirement benefits
The Company provides other post-retirement benefits in the form of cash paid to employees on their retirement or termination. These benefits consist of last housing allowance (“Biaya Fasilitas Perumahan Terakhir” or “BFPT”) and home passage leave (“Biaya Perjalanan Pensiun dan Purnabhakti” or “BPP”).
The movements of the other post-retirement benefits provisions for six months period ended June 30, 2013 and the years ended December 31, 2012:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Other post-retirement benefits costs provisions at beginning of year |
310 |
|
273 |
|
Other post-retirement benefits costs |
33 |
|
65 |
|
Other post-retirement benefits paid by the Company |
(13 |
) |
(28 |
) |
Total other post-retirement benefits costs provisions at end of period |
330 |
|
310 |
|
86
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
34. RETIREMENT BENEFITS OBLIGATION (continued)
c. Other post-retirement benefits (continued)
The components of the net periodic other post-retirement benefits costs for six months period ended June 30, 2013 and the years ended December 31, 2012:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Service costs |
5 |
|
10 |
|
Interest costs |
15 |
|
32 |
|
Amortization of past service costs |
4 |
|
7 |
|
Recognized actuarial losses |
9 |
|
16 |
|
Total net periodic other post-retirement benefits costs (Note 27) |
33 |
|
65 |
|
d. Obligation under Labor Law
Under Law No. 13 Year 2003 concerning labor regulation, the Company and subsidiaries are required to provide a minimum pension benefit, if not covered yet by the sponsored pension plans, to their employees upon retirement age. The total related obligation recognized as of June 30, 2013 and December 31, 2012 amounted to Rp159 billion and Rp146 billion, respectively. The related employees benefits cost charged to expense amounted to Rp16 billion and Rp13 billion for six months period ended June 30, 2013 and 2012, respectively.
35. LONG SERVICE AWARDS (“LSA”)
Telkomsel provides certain cash awards or certain number of days leave benefits to its employees based on the employees’ length of service requirements, including LSA and LSL. LSA are either paid at the time the employees reach certain years during employment, or at the time of termination. LSL are either certain number of days leave benefit or cash, subject to approval by management, provided to employees who meet the requisite number of years of service and with a certain minimum age.
The obligation with respect to these awards was determined based on an actuarial valuation using the Projected Unit Credit method, and amounted to Rp358 billion and Rp347 billion as of June 30, 2013 and December 31, 2012, respectively. The related benefits costs charged to expense amounted to Rp29 billion and Rp25 billion for six months period ended June 30, 2013 and 2012, respectively (Note 27).
36. POST-RETIREMENT HEALTH CARE BENEFITS
The Company provides a post-retirement health care plan to all of its employees hired before November 1, 1995 who have worked for the Company for 20 years or more when they retire, and to their eligible dependents. The requirement to work for 20 years does not apply to employees who retired prior to June 3, 1995. The employees hired by the Company starting from November 1, 1995 are no longer entitled to this plan. The plan is managed by Yakes.
The defined contribution post retirement health care plan is provided to employees hired with permanent status on or after November 1, 1995 or employees with terms of service less than 20 years on the time of retirement. The Company’s contribution amounted to Rp17 billion and Rp18 billion for six months period ended June 30, 2013 and the years ended December 31, 2012, respectively.
87
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
36. POST-RETIREMENT HEALTH CARE BENEFITS (continued)
The following table presents the change in the projected post-retirement health care benefits obligation, change post-retirement health care benefits in plan assets, funded status of the post-retirement health care benefits plan and net amount recognized in the Company’s consolidated statement of financial position as of June 30, 2013 and December 31, 2012:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Change in projected post-retirement health care benefits obligation |
|
|
|
|
Projected post-retirement health care benefits obligation at beginning of year |
13,162 |
|
10,547 |
|
Service costs |
35 |
|
56 |
|
Interest costs |
407 |
|
755 |
|
Actuarial losses |
(25 |
) |
2,074 |
|
Expected post-retirement health care benefits paid |
(147 |
) |
(270 |
) |
Projected post-retirement health care benefits obligation at end of period |
13,432 |
|
13,162 |
|
Change post-retirement health care benefits in plan assets |
|
|
|
|
Fair value of plan assets at beginning of year |
9,913 |
|
8,986 |
|
Expected return on plan assets |
372 |
|
720 |
|
Employer’s contributions |
181 |
|
300 |
|
Actuarial gains |
(25 |
) |
177 |
|
Expected post-retirement health care paid |
(147 |
) |
(270 |
) |
Fair value of plan assets at end of period |
10,294 |
|
9,913 |
|
Funded status |
(3,138 |
) |
(3,249 |
) |
Unrecognized net actuarial losses |
2,452 |
|
2,570 |
|
Post-retirement health care benefits costs provisions |
(686 |
) |
(679 |
) |
As of June 30, 2013 and December 31, 2012, plan assets mainly consisted of:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Mutual funds |
77.73% |
|
81.00% |
|
Time deposits |
5.83% |
|
10.72% |
|
Equity securities |
11.94% |
|
7.61% |
|
Corporate obligation |
3.58% |
|
- |
|
Others |
0.92% |
|
0.67% |
|
Total assets |
100.00% |
|
100.00% |
|
Yakes plan assets also include Series B shares issued by the Company with fair value totaling Rp73 billion and Rp35 billion representing 0.71% and 0.35% of total plan assets as of June 30, 2013 and December 31, 2012, respectively.
88
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
36. POST-RETIREMENT HEALTH CARE BENEFITS (continued)
The expected return is determined based on market expectation for returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets was Rp347 billion and Rp896 billion for six months period ended June 30, 2013 and the years ended December 31, 2012, respectively.
The components of net periodic post-retirement health care benefits cost are as follows:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Service costs |
35 |
|
56 |
|
Interest costs |
407 |
|
755 |
|
Expected return on plan assets |
(372 |
) |
(720 |
) |
Recognized actuarial losses |
118 |
|
- |
|
Net periodic post-retirement benefits costs |
188 |
|
91 |
|
Amounts charged to subsidiaries under contractual agreements |
(1 |
) |
(1 |
) |
Total net periodic post-retirement health care benefits costs less amounts charged to subsidiaries (Note 27) |
187 |
|
90 |
|
The movements of the projected post-retirement health care benefits costs provisions for six months period ended June 30, 2013 and the years ended December 31, 2012, are as follows:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Projected post-retirement health care benefits costs provisions at beginning of year |
679 |
|
888 |
|
Net periodic post-retirement health care benefits costs less amounts charged to subsidiaries (Note 27) |
187 |
|
90 |
|
Amounts charged to subsidiaries under contractual agreements |
1 |
|
1 |
|
Employer’s contributions |
(181 |
) |
(300 |
) |
Projected post-retirement health care benefits costs provisions at end of period |
686 |
|
679 |
|
The actuarial valuation for the post-retirement health care benefits was performed based on the measurement date as of December 31, 2012 and 2011, with reports dated February 28, 2013 and March 7, 2012, respectively, by TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary as of December 31, 2012 and 2011 are as follows:
|
December 31, 2012 |
|
December 31, 2011 |
|
Discount rate |
6.25% |
|
7.25% |
|
Expected long-term return on plan assets |
7.50% |
|
8.00% |
|
Health care costs trend rate assumed for next year |
7% |
|
7% |
|
Ultimate health care costs trend rate |
7% |
|
7% |
|
Year that the rate reaches the ultimate trend rate |
2013 |
|
2012 |
|
89
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
37. RELATED PARTY TRANSACTIONS
In the normal course of its business, the Company and subsidiaries entered into transactions with related parties. It is the Company's policy that the pricing of these transactions be the same as those of arm’s-length transactions.
a. Nature of relationships and accounts/transactions with related parties
Details of the nature of relationships and transactions/accounts with significant related parties are as follows:
Related parties |
|
Nature of relationships with related parties |
|
Nature of transactions/accounts |
|
The Government: Minister of Finance State-owned enterprises |
|
Majority stockholder |
|
Finance costs and investment on financial instruments |
|
State-owned enterprises |
|
Entity under common control |
|
Operation expenses, purchase of property and equipment, construction and installation services, insurance expense, finance costs, finance income, investment on financial instruments |
|
Indosat |
|
Entity under common control
|
|
Interconnection revenues, interconnection expenses, telecommunications facilities usage, operating and maintenance cost, leased lines revenue, satellite transponders usage revenues, usage of data communication network system expenses and lease revenues |
|
PT Aplikanusa Lintasarta (“Lintasarta”) |
|
Entity under common control |
|
Network revenues, usage of data communication network system expenses and leased lines expenses |
|
Indosat Mega Media |
|
Entity under common control |
|
Network revenues |
|
PT Sistelindo Mitralintas |
|
Entity under common control |
|
Network revenues |
|
CSM |
|
Associated company |
|
Satellite transponders usage revenues, leased lines revenues, transmission lease expenses |
|
Patrakom |
|
Associated company |
|
Satellite transponders usage revenues, leased lines revenues, transmission lease expenses |
|
PSN |
|
Associated company |
|
Satellite transponders usage revenues, leased lines revenues, transmission lease expenses, interconnection revenues and interconnection expense |
|
PT Industri Telekomunikasi Indonesia (“INTI”) |
|
Entity under common control |
|
Purchase of property and equipment |
|
PT Asuransi Jasa Indonesia (“Jasindo”) |
|
Entity under common control |
|
Insurance of property and equipment |
|
PT Jaminan Sosial Tenaga Kerja (“Jamsostek”) |
|
Entity under common control |
|
Insurance expenses for employees |
|
PT Perusahaan Listrik Negara (Persero) (“PLN”) |
|
Entity under common control |
|
Electricity expenses |
|
PT Pos Indonesia |
|
Entity under common control |
|
Cost of SIM cards |
|
State-owned banks |
|
Entity under common control |
|
Finance income and finance costs |
|
BNI |
|
Entity under common control |
|
Finance income and finance costs |
|
90
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
37. RELATED PARTY TRANSACTIONS (continued)
a. Nature of relationships and transactions/accounts with related parties (continued)
Related parties |
|
Nature of relationships with related parties |
|
Nature of transactions/accounts |
|
Bank Mandiri |
|
Entity under common control |
|
Finance income and finance costs |
|
BR |
|
Entity under common control
|
|
Finance income and finance costs |
|
BTN |
|
Entity under common control |
|
Finance income and finance costs |
|
Bahana
|
|
Entity under common control
|
|
Available-for-sale financial assets, bonds and notes |
|
Koperasi Pegawai Telkom (“Kopegtel”)
|
|
Entity under common control |
|
Purchase of property and equipment, construction and installation services, leases of buildings, leases of vehicles, purchases of materials and construction services, utilizes maintenance and cleaning services and RSA revenues |
|
PT Sandhy Putra Makmur (“SPM”) |
|
Entity under common control |
|
Leases of buildings, leases of vehicles, purchase of materials and construction services, utilities maintenance and cleaning services |
|
Koperasi Pegawai Telkomsel (“Kisel”) |
|
Entity under common control
|
|
Leases of vehicle, printing and distribution of customer bills, collection, fee, and other services fee, distribution of SIM cards and pulse reload vouchers |
|
PT Graha Informatika Nusantara (“Gratika”) |
|
Entity under common control |
|
Leased lines revenues, purchase of property and equipment, installation and maintenance expense |
|
Directors and commissioners |
|
Key management personnel |
|
Honorarium and facilities |
|
Yakes |
|
Entity under significant influence |
|
Medical expenses |
|
b. Transactions with related parties
The following are significant transactions with related parties:
|
2013 |
|
2012 |
| ||||
|
Amount |
|
% of total revenues |
|
Amount |
|
% of total revenues |
|
REVENUES |
|
|
|
|
|
|
|
|
Entity under common control |
|
|
|
|
|
|
|
|
Kisel |
1,258 |
|
3.13 |
|
1,487 |
|
4.05 |
|
Indosat |
530 |
|
1.32 |
|
435 |
|
1.18 |
|
Lintasarta |
34 |
|
0.08 |
|
45 |
|
0.12 |
|
Sub total |
1,822 |
|
4.53 |
|
1,967 |
|
5.35 |
|
Associated companies |
|
|
|
|
|
|
|
|
Patrakom |
45 |
|
0.11 |
|
37 |
|
0.10 |
|
CSM |
17 |
|
0.04 |
|
27 |
|
0.07 |
|
Sub total |
62 |
|
0.15 |
|
64 |
|
0.17 |
|
Others (each below Rp30 billion) |
165 |
|
0.41 |
|
15 |
|
0.05 |
|
Total |
2,049 |
|
5.09 |
|
2,046 |
|
5.57 |
|
91
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
37. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
|
2013 |
|
2012 |
| ||||
|
Amount |
|
% of total expenses |
|
Amount |
|
% of total expenses |
|
EXPENSES |
|
|
|
|
|
|
|
|
Entity under common control |
|
|
|
|
|
|
|
|
Indosat |
513 |
|
1.93 |
|
420 |
|
1.69 |
|
Kopegtel |
321 |
|
1.21 |
|
412 |
|
1.66 |
|
Kisel |
301 |
|
1.13 |
|
375 |
|
1.51 |
|
PLN |
280 |
|
1.05 |
|
319 |
|
1.29 |
|
Jasindo |
176 |
|
0.66 |
|
208 |
|
0.84 |
|
Yakes |
63 |
|
0.24 |
|
63 |
|
0.25 |
|
PT Pos Indonesia |
34 |
|
0.13 |
|
26 |
|
0.10 |
|
Jamsostek |
21 |
|
0.08 |
|
19 |
|
0.08 |
|
SPM |
7 |
|
0.03 |
|
14 |
|
0.06 |
|
Sub total |
1,716 |
|
6.46 |
|
1,856 |
|
7.48 |
|
Associated companies |
|
|
|
|
|
|
|
|
PSN |
83 |
|
0.31 |
|
86 |
|
0.35 |
|
Patrakom |
41 |
|
0.15 |
|
34 |
|
0.14 |
|
CSM |
36 |
|
0.14 |
|
54 |
|
0.22 |
|
Sub total |
160 |
|
0.60 |
|
174 |
|
0.71 |
|
Others (each below Rp30 billion) |
19 |
|
0.07 |
|
77 |
|
0.32 |
|
Total |
1,895 |
|
7.13 |
|
2,107 |
|
8.51 |
|
|
2013 |
|
2012 |
| ||||
|
Amount |
|
% of total finance income |
|
Amount |
|
% of total finance income |
|
Finance income |
|
|
|
|
|
|
|
|
Entity under common control |
|
|
|
|
|
|
|
|
State-owned banks |
242 |
|
58.60 |
|
166 |
|
61.25 |
|
|
2013 |
|
2012 |
| ||||
|
Amount |
|
% of total finance costs |
|
Amount |
|
% of total finance costs |
|
Finance costs |
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
The Government |
43 |
|
6.18 |
|
51 |
|
9.03 |
|
Entity under common control |
|
|
|
|
|
|
|
|
State-owned banks |
236 |
|
33.91 |
|
232 |
|
41.06 |
|
Total |
279 |
|
40.09 |
|
283 |
|
50.09 |
|
92
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
37. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
|
2013 |
|
2012 |
| ||||
|
Amount |
|
% of total fixed assets purchased |
|
Amount |
|
% of total fixed assets purchased |
|
Purchase of property and equipment (Note 10) |
|
|
|
|
|
|
|
|
Entity under common control |
|
|
|
|
|
|
|
|
Kopegtel |
110 |
|
1.04 |
|
79 |
|
1.14 |
|
State-owned enterprises |
74 |
|
0.70 |
|
30 |
|
0.43 |
|
Others (each below Rp30 billion) |
21 |
|
0.20 |
|
36 |
|
0.52 |
|
Total |
205 |
|
1.94 |
|
145 |
|
2.09 |
|
Presented below are balances of accounts with related parties:
|
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
|
Amount |
|
% of total assets |
|
Amount |
|
% of total assets |
|
a. |
Cash and cash equivalents (Note 3) |
9,174 |
|
8.23 |
|
8,992 |
|
8.07 |
|
b. |
Other current financial assets (Note 4) |
502 |
|
0.45 |
|
1,888 |
|
1.69 |
|
c. |
Trade receivables - net (Note 5) |
1,131 |
|
1.02 |
|
701 |
|
0.63 |
|
d. |
Advances and prepaid expenses (Note 7) |
|
|
|
|
|
|
|
|
|
Others |
80 |
|
0.07 |
|
18 |
|
0.02 |
|
e. |
Advances and other non-current assets (Note 11) |
|
|
|
|
|
|
|
|
|
Entity under common control |
|
|
|
|
|
|
|
|
|
BNI |
145 |
|
0.13 |
|
- |
|
- |
|
|
Others |
2 |
|
0.002 |
|
14 |
|
0.01 |
|
|
Total |
147 |
|
0.13 |
|
14 |
|
0.01 |
|
|
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
|
Amount |
|
% of total liabilities |
|
Amount |
|
% of total liabilities |
|
f. |
Trade payables (Note 13) |
77 |
|
0.16 |
|
3 |
|
0.01 |
|
|
Entity under common control |
|
|
|
|
|
|
|
|
|
State-owned enterprises |
|
|
|
|
|
|
|
|
|
Kopegtel |
72 |
|
0.15 |
|
115 |
|
0.26 |
|
|
Indosat |
18 |
|
0.04 |
|
31 |
|
0.07 |
|
|
INTI |
0 |
|
0.00 |
|
197 |
|
0.44 |
|
|
Sub-total |
167 |
|
0.36 |
|
346 |
|
0.78 |
|
|
Entity under significant influence |
|
|
|
|
|
|
|
|
|
Yakes |
29 |
|
0.06 |
|
39 |
|
0.09 |
|
|
Others (each below Rp30 billion) |
421 |
|
0.90 |
|
47 |
|
0.11 |
|
|
Total |
617 |
|
1.32 |
|
432 |
|
0.98 |
|
g. |
Accrued expenses (Note 14) |
|
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
|
The Government |
16 |
|
0.03 |
|
17 |
|
0.04 |
|
|
Entity under common control |
|
|
|
|
|
|
|
|
|
State-owned banks |
50 |
|
0.10 |
|
72 |
|
0.16 |
|
|
Total |
66 |
|
0.13 |
|
89 |
|
0.20 |
|
h. |
Advances from customers and suppliers |
|
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
|
The Government |
52 |
|
0.11 |
|
64 |
|
0.14 |
|
93
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
37. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
|
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
|
Amount |
|
% of total liabilities |
|
Amount |
|
% of total liabilities |
|
i. |
Short-term bank loans (Note 16) |
|
|
|
|
|
|
|
|
|
Entity under common control |
50 |
|
0.11 |
|
- |
|
- |
|
|
BRI |
|
|
|
|
|
|
|
|
|
BSM |
11 |
|
0.02 |
|
5 |
|
0.01 |
|
|
BRI Syariah |
4 |
|
0.01 |
|
- |
|
- |
|
|
Total |
65 |
|
0.14 |
|
5 |
|
0.01 |
|
j. |
Two-step loans (Note 18) |
|
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
|
The Government |
1,798 |
|
3.85 |
|
1,987 |
|
4.48 |
|
k. |
Bonds and notes (Note 19) |
|
|
|
|
|
|
|
|
|
Entity under common control |
|
|
|
|
|
|
|
|
|
Bahana |
- |
|
0.00 |
|
8 |
|
0.02 |
|
l. |
Long-term bank loans (Note 20) |
|
|
|
|
|
|
|
|
|
Entity under common control |
|
|
|
|
|
|
|
|
|
BRI |
5,156 |
|
11.04 |
|
4,630 |
|
10.43 |
|
|
BNI |
1,775 |
|
3.80 |
|
2,349 |
|
5.29 |
|
|
Bank Mandiri |
1,070 |
|
2.29 |
|
1,417 |
|
3.19 |
|
|
Total |
8,001 |
|
17.13 |
|
8,396 |
|
18.91 |
|
c. Significant agreements with related parties
i. The Government
The Company obtained two-step loans from the Government (Note 18).
ii. Indosat
The Company has an agreement with Indosat for the provision of international telecommunications services to the public.
The Company has also entered into an interconnection agreement between the Company’s fixed line network (Public Switched Telephone Network or “PSTN”) and Indosat’s GSM mobile cellular telecommunications network in connection with implementation of Indosat Multimedia Mobile services and the settlement of the related interconnection rights and obligations.
The Company also has an agreement with Indosat for the interconnection of Indosat's GSM mobile cellular telecommunications network with the Company's PSTN, enabling each party’s customers to make domestic calls between Indosat’s GSM mobile network and the Company’s fixed line network and allowing Indosat’s mobile customers to access the Company’s IDD service by dialing “007”.
The Company has been handling customer billings and collections for Indosat. Indosat is gradually taking over the activities and performing its own direct billing and collection. The Company receives compensation from Indosat computed at 1% of the collections made by the Company beginning January 1, 1995, plus the billing process expenses which are fixed at a certain amount per record. On December 11, 2008, the Company and Indosat agreed to implement IDD service charge tariff which already takes into account the compensation of its billing and collection. The agreement is valid and effective starting on January to December 2012, and can be applied until a new Minutes of Agreement becomes available.
94
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
37. RELATED PARTY TRANSACTIONS (continued)
c. Significant agreements with related parties (continued)
On December 28, 2006, the Company and Indosat signed amendments to the interconnection agreements for the fixed line networks (local, SLJJ and international) and mobile network for the implementation of the cost-based tariff obligations under the MoCI Regulations No. 8/Year 2006 (Note 40). These amendments took effect on January 1, 2007.
Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to its GSM mobile cellular customers.
The Company provides leased lines to Indosat and subsidiaries, namely PT Indosat Mega Media, Lintasarta and PT Sistelindo Mitralintas. The leased lines can be used by these companies for telephone, telegraph, data, telex, facsimile or other telecommunication services.
iii. Others
The Company has entered into agreements with associated companies, namely CSM, Patrakom, PSN and Gratika for the utilization of the Company's satellite transponders or frequency channels and leased lines.
Telkomsel has an agreement with PSN for the lease of PSN’s transmission link. Based on the
agreement, which was made on March 14, 2001, the minimum lease period is 2 years since
the operation of the transmission link and is extendable subject to agreement by both parties.
As of the issuance date of the consolidated financial statements, the extension is still in process.
Koperasi Pegawai Telkomsel (“Kisel”) is a cooperative that was established by Telkomsel’s employees to engage in car rental services, printing and distribution of customer bills, collection and other services principally for the benefit of Telkomsel. Telkomsel also has dealership agreements with Kisel for distribution of SIM cards and pulse reload vouchers.
d. Key management personnel remuneration
Key management personnel of the Company are the Boards of Commissioners and Directors as detailed in Note 1b.
The Company and subsidiaries provide honorarium and facilities to support the operational of their Board of Commissioners. The Company and subsidiaries provide short-term employment benefits in the form of salaries and facilities to support the operational duties of their Board of Directors. The total of such benefits is as follows:
|
2013 |
|
2012 |
| ||||
|
Amount |
|
% of total expenses |
|
Amount |
|
% of total expenses |
|
Board of Directors |
201 |
|
0.75% |
|
159 |
|
0.64% |
|
Board of Commissioners |
64 |
|
0.24% |
|
34 |
|
0.14% |
|
95
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
38. SEGMENT INFORMATION
In 2012, Management decided to change the way to manage the Company's business portfolios from managed by product-based approach to customer centric approach, as part of the Company’s strategy to provide one-stop solution to customers. This was followed by a change in the organizational structure to accommodate decision-making and assessing performance based on the customer centric approach. The change in the way of managing the Company’s business portfolios and the change in the Company's organizational structure led management, as the Company's Chief Operation Decision Maker, to change the presentation of the Company and subsidiaries’ segment information previously presented in the consolidated financial statements for six months period ended June 30, 2012. Accordingly, the segment information in the consolidated financial statements for six months period ended June 30, 2012 has been restated to conform with the presentation of segment information in the consolidated financial statements for six months period ended June 30, 2013.
The Company and subsidiaries have four main operating segments, namely personal, home, corporate and others. The personal segment provides mobile cellular and fixed wireless telecommunications services to individual customers. The home segment provides fixed wireline telecommunications services, pay TV, data and internet services to home customers. The corporate segment provides telecommunications services, including interconnection, leased lines, satellite, VSAT, contact center, broadband access, information technology services, data and internet services to companies and institutions. Operating segments that are not monitored separately by Chief Operation Decision Maker are presented as "Others" that provides building management services.
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements.
However, the financing activities and income taxes are not separately monitored and are not allocated to operating segments.
Segment revenues and expenses include transactions between operating segments and are accounted for at prices that Management believes represent market prices.
|
June 30, 2013 |
| ||||||||||||
|
Corporate |
|
Home |
|
Personal |
|
Others |
|
Total before elimination |
|
Elimination |
|
Total Consolidated |
|
Segment results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues |
8,268 |
|
3,712 |
|
28,101 |
|
79 |
|
40,160 |
|
- |
|
40,160 |
|
Inter-segment revenues |
3,653 |
|
1,097 |
|
1,069 |
|
359 |
|
6,178 |
|
(6,178 |
) |
- |
|
Total segment revenues |
11,921 |
|
4,809 |
|
29,170 |
|
438 |
|
46,338 |
|
(6,178 |
) |
40,160 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External expenses |
(7,338 |
) |
(3,246 |
) |
(15,330 |
) |
(400 |
) |
(26,314 |
) |
- |
|
(26,314 |
) |
Inter-segment expenses |
(2,210 |
) |
(1,199 |
) |
(2,768 |
) |
(1 |
) |
(6,178 |
) |
6,178 |
|
- |
|
Total segment expenses |
(9,548 |
) |
(4,445 |
) |
(18,098 |
) |
(401 |
) |
(32,492 |
) |
6,178 |
|
(26,314 |
) |
Segment results |
2,373 |
|
364 |
|
11,072 |
|
37 |
|
13,846 |
|
- |
|
13,846 |
|
Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
34,530 |
|
17,689 |
|
64,115 |
|
1,038 |
|
117,372 |
|
(6,295 |
) |
111,077 |
|
Asset held-for-sale |
- |
|
- |
|
131 |
|
- |
|
131 |
|
- |
|
131 |
|
Long-term investments |
244 |
|
- |
|
20 |
|
- |
|
264 |
|
- |
|
264 |
|
Totalconsolidated assets |
34,774 |
|
17,689 |
|
64,266 |
|
1,038 |
|
117,767 |
|
(6,295 |
) |
111,472 |
|
Total consolidated liabilities |
(19,391 |
) |
(10,479 |
) |
(22,326 |
) |
(822 |
) |
(53,018 |
) |
6,295 |
|
(46,723) |
|
Capital expenditures |
(2,560 |
) |
(650 |
) |
(7,008 |
) |
344 |
|
(10,562 |
) |
- |
|
(10,562 |
) |
Depreciation and amortization expenses |
(1,083 |
) |
(755 |
) |
(5,087 |
) |
(15 |
) |
(6,940 |
) |
- |
|
(6,940 |
) |
Provision for impairment of receivables and inventory obsolescence |
(130 |
) |
(176 |
) |
(112 |
) |
(1 |
) |
(419 |
) |
- |
|
(419 |
) |
96
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
38. SEGMENT INFORMATION (continued)
|
June 30, 2012 |
| ||||||||||||
|
Corporate |
|
Home |
|
Personal |
|
Others |
|
Total before elimination |
|
Elimination |
|
Total consolidated |
|
Segment results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues |
8,946 |
|
3,657 |
|
23,878 |
|
239 |
|
36,720 |
|
- |
|
36,720 |
|
Inter-segment revenues |
1,457 |
|
1,289 |
|
2,528 |
|
2 |
|
5,276 |
|
(5,276 |
) |
- |
|
Total segment revenues |
10,403 |
|
4,946 |
|
26,406 |
|
241 |
|
41,996 |
|
(5,276 |
) |
36,720 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External expenses |
(5,297 |
) |
(3,221 |
) |
(16,021 |
) |
120 |
|
(24,419 |
) |
- |
|
(24,419 |
) |
Inter-segment expenses |
(2,911 |
) |
(967 |
) |
(1,084 |
) |
(314 |
) |
(5,276 |
) |
5,276 |
|
- |
|
Total segment expenses |
(8,208 |
) |
(4,188 |
) |
(17,105) |
|
(194 |
) |
(29,695 |
) |
5,276 |
|
(24,419 |
) |
Segment results |
2,195 |
|
758 |
|
9,301 |
|
47 |
|
12,301 |
|
- |
|
12,301 |
|
Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
29,276 |
|
17,393 |
|
60,165 |
|
474 |
|
107,308 |
|
(6,508 |
) |
100,800 |
|
Asset held-for-sale |
- |
|
- |
|
516 |
|
- |
|
516 |
|
- |
|
516 |
|
Long-term investments |
199 |
|
- |
|
21 |
|
- |
|
220 |
|
- |
|
220 |
|
Total consolidated assets |
|
|
|
|
|
|
|
|
|
|
|
|
101,536 |
|
Total consolidated liabilities |
(16,485 |
) |
(11,405 |
) |
(22,093 |
) |
(242 |
) |
(50,225 |
) |
6,508 |
|
(43,717 |
) |
Capital expenditures |
(1,759 |
) |
(836 |
) |
(4,283 |
) |
(69 |
) |
(6,947 |
) |
- |
|
(6,947 |
) |
Depreciation and amortization expenses |
(1,056 |
) |
(724 |
) |
(5,175 |
) |
(12 |
) |
(6,967 |
) |
- |
|
(6,967 |
) |
Provision for impairment of receivables and inventory obsolescence |
(91 |
) |
(213 |
) |
(161 |
) |
- |
|
(465 |
) |
- |
|
(465 |
) |
The Company has entered into separate agreements with several investors under RSA to develop fixed lines, public card-phone booths, data and internet network, and related supporting telecommunications facilities.
As of June 30, 2013, the Company has 4 RSA’s with 4 investors. The RSA’s are located in East Java, Makassar, Pare-pare, Manado, Denpasar, Mataram and Kupang, with concession periods ranging from 129 to 148 months.
Under the RSA, the investors finance the costs incurred in developing the telecommunications facilities and the Company manages and operates the telecommunication facilities upon the completion of the constructions. Repairs and maintenance costs during RSA period will be borne jointly by the Company and investors. The investors legally retain the rights to the property, plant and equipment constructed by them during the RSA periods. At the end of RSA period, the investors will transfer the ownership of the telecommunication facilities to the Company at a nominal price.
Generally, the revenues earned in the form of line installation charges, outgoing telephone pulses and monthly subscription charges are shared between the Company and investors based on certain agreed amount and/or ratio.
97
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
40. TELECOMMUNICATIONS SERVICES TARIFFS
Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating telecommunications network and/or services are determined by providers based on the tariff type, structure and with respect to the price cap formula set by the Government.
a. Fixed line telephone tariffs
The Government has issued a new adjustment tariff formula which is stipulated on the Decree of Minister of Communication and Information (“MoCI”) No. 15/PER/M.KOMINFO/4/2008 dated April 30, 2008 concerning “Procedure for Tariff Determination for Basic Telephony Service which Connected through Fixed Line Network”.
Under the Decree, tariff structure for basic telephony services which is connected through fixed line network consists of the following:
· Activation fee
· Monthly subscription charges
· Usage charges
· Additional facilities fee.
b. Mobile cellular telephone tariffs
On April 7, 2008, the MoCI issued Decree No. 09/PER/M.KOMINFO/04/2008 regarding “Mechanism to Determine Tariff of Telecommunication Services which Connected through Mobile Cellular Network” which provides guidelines to determine cellular tariffs with a formula consisting of network element cost and retail services activity cost. This Decree replaced the previous Decree of No. 12/PER/M.KOMINFO/02/2006.
Under Minister Decree No. 09/PER/M.KOMINFO/04/2008 dated April 7, 2008, the cellular tariffs of operating telecommunication services which connected through mobile cellular network consist of the following:
· Basic telephony services tariff
· Roaming tariff, and/or
· Multimedia services tariff,
with the following structure:
· Activation fee
· Monthly subscription charges
· Usage charges
· Additional facilities fee.
c. Interconnection tariffs
The Indonesian Telecommunication Regulatory Body (“ITRB”), in its letter No. 227/BRTI/XII/2010 dated December 31, 2010, decided to implement new interconnection tariffs effective from January 1, 2011 for cellular mobile network, satellite mobile network, and fixed local network and effective from July 1, 2011 for fixed wireless local network with a limited mobility.
Based on Director General of Post and Informatics Decree No.201/KEP/DJPPI/KOMINFO/7/2011 dated July 29, 2011, ITRB approved the Company’s revision of Reference Interconnection Offer (“RIO”) regarding the interconnection tariff.
ITRB, in its letter No. 262/BRTI/XII/2011 dated December 12, 2011, decided to change the basis for interconnection SMS tariff from Sender Keep All (“SKA”) basis into cost basis (Non-SKA) effective from June 1, 2012, for all telecommunication provider operators.
98
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
40. TELECOMMUNICATIONS SERVICES TARIFFS (continued)
d. Network lease tariffs
Through the MoCI Decree No. 03/PER/M.KOMINFO/1/2007 dated January 26, 2007 concerning “Network Lease”, the Government regulated the form, type, tariff structure, and tariff formula for services of network lease. Pursuant to the MoCI Decree, the Government released Director General of Post and Telecommunication Decision Letter No. 115 Year 2008 dated March 24, 2008 which stated “The Agreement on Network Lease Service Type Document, Network Lease Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease Service, and Provision Procedure of Network Lease Service in 2008 Owned by Dominant Network Lease Service Provider”, in conformity with the Company’s proposal.
e. Tariff for other services
The tariffs for satellite lease, telephony services, and other multimedia are determined by the service provider by taking into account the expenditures and market price. The Government only determines the tariff formula for basic telephony services. There is no stipulation for the tariff of other services.
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS
a. Capital expenditures
As of June 30, 2013, capital expenditures committed under the contractual arrangements, principally relating to procurement and installation of switching equipment, transmission equipment, and cable network are as follows:
Currencies |
|
Amounts in foreign currencies (in millions) |
|
Equivalent In Rupiah |
|
Rupiah |
|
|
|
8,250 |
|
U.S. Dollar |
|
713 |
|
7,082 |
|
Euro |
|
1.3 |
|
17 |
|
SGD |
|
0 |
|
0 |
|
Total |
|
|
|
15,349 |
|
The above balance includes the following significant agreements:
(i) The Company
Contracting parties |
|
Date of agreement |
|
Significant provisions of the agreement |
|
The Company and Sansaine Huawei Consortium |
|
May 27, 2009 |
|
Cooperation agreement for procurement and installation of MSAN ALU and Secondary Access 2008 Batch - 3 |
|
|
|
June 15, 2009 |
|
Cooperation agreement for procurement and installation of MSAN ALU and Secondary Access 2008 Batch – 1 |
|
The Company and ZTE Consortium
|
|
June 2, 2009
|
|
Cooperation agreement for procurement and installation of MSAN ALU and Secondary Access 2008 Batch 2 |
|
99
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
(i) The Company (continued)
Contracting parties |
|
Date of agreement |
|
Significant provisions of the agreement |
|
The Company and Sansaine Huawei Consortium |
|
August 3, 2009 |
|
Procurement and installation agreement for Softswitch and modernization of MSAN Divre I, Divre II, Divre III and Divre IV |
|
The Company and PT ZTE Indonesia |
|
September 4, 2009 |
|
Procurement and installation agreement for Modernization MSAN Softswitch Divre VI and Divre VII |
|
The Company and PT ZTE Indonesia |
|
October 6, 2010 |
|
Procurement and installation agreement for Gigabit Capable Passive Optical Network (G-PON) |
|
The Company and PT Lintas Teknologi Indonesia |
|
June 8, 2011 |
|
Procurement and installation agreement for DWDM Alcatel-Lucent (ALU) |
|
The Company and G-Pas Consortium |
|
June 14, 2011 |
|
Procurement and installation agreement for Outside Plant Fiber Optic (OSP-FO) Access & RMJ GPAS |
|
The Company and Mandiri Maju Consortium |
|
June 14, 2011 |
|
Procurement and installation agreement for Outside Plant Fiber Optic (OSP-FO) Access & RMJ |
|
The Company and PT Datacomm Diangraha |
|
June 30, 2011 |
|
Procurement and installation agreement for Expansion of Metro Ethernet ALU |
|
The Company and PT Bina Nusantara Perkasa |
|
December 9, 2011 |
|
Procurement and installation agreement for “Sistem Komuniksai Kabel Laut” (“SKKL”) Sumatera - Bangka (SBCS) and SKKL Tarakan - Tanjung Selor (TSCS) |
|
The Company and PT Ketrosden Triasmitra - PT Nautic Maritime Salvage |
|
August 30, 2012 |
|
Procurement and installation agreement for SKKL Luwuk - Tutuyan Cable System (LTCS) |
|
The Company and PT Industri Telekomunikasi Indonesia |
|
December 31, 2010 |
|
Procurement and installation agreement for cooper wire access modernization through Trade In/Trade Off method |
|
The Company and PT Len Industri (Persero) |
|
March 29, 2012 |
|
Procurement and installation agreement for cooper wire access modernization through Trade In/Trade Off method |
|
The Company and PT QDC Technologies |
|
June 14, 2011 |
|
Procurement and installation agreement Outside Plant Fiber Optic (OSP-FO) Access and RMJ. |
|
The Company and PT Huawei Tech Investment |
|
January 5, 2012 |
|
Procurement and installation agreement for ISP WDM SBCS JASUKA HUAWEI |
|
The Company and PT Mastersystem Infotama |
|
December 5, 2012 |
|
Procurement and installation agreement for Internet Protocol Backbone (IPBB) System. |
|
The Company and Consortium Binainfo Lokatara |
|
December 7, 2012 |
|
Procurement and installation agreement for Wireless Access Gateway (WAG), Policy and Charging Enforcement Function (PCEF), Policy and Charging Rule Function (PCRF) Platform Ericson. |
|
The Company and PT Huawei Tech Investment |
|
December 20, 2012 |
|
Procurement and installation agreement for Wireless Access Gateway (WAG), Policy and Charging Enforcement Function (PCEF), Policy and Charging Rule Function (PCRF) Huawei. |
|
100
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
(ii) Telkomsel
Contracting parties |
|
Date of agreement |
|
Significant provisions of the agreement |
|
Telkomsel, PT Ericsson Indonesia, Ericsson AB, PT Nokia Siemens Networks, Nokia Siemens Networks Oy, and Nokia Siemens Network GmbH & Co. KG |
|
April 17, 2008* |
|
The combined 2G and 3G CS Core Network Rollout Agreements |
|
Telkomsel, PT Ericsson Indonesia, and PT Nokia Siemens Networks |
|
April 17, 2008** |
|
Technical Service Agreement (TSA) for Combined 2G and 3G CS Core Network |
|
Telkomsel, PT Ericsson Indonesia, Ericsson AB, PT Nokia Siemens Networks, Nokia Siemens Networks Oy, Huawei International Pte. Ltd., PT Huawei and PT ZTE Indonesia |
|
March and June 2009* |
|
2G BSS and 3G UTRAN Rollout agreement for the provision of 2G GSM BSS and 3G UMTS Radio Access Network |
|
Telkomsel, PT Trikomsel OKE and PT Mitra Telekomunikasi Selular (“MTS”) |
|
July 2009*** |
|
Purchase of iPhone products and provision of cellular network service |
|
Telkomsel, PT Packet Systems Indonesia and PT Huawei |
|
February 3, 2010 |
|
Maintenance and procurement of equipment and related service agreement for Next Generation Convergence IP RAN Rollout and Technical Support |
|
Telkomsel, PT Datacraft Indonesia and PT Huawei |
|
February 3, 2010 |
|
Maintenance and procurement of equipment and related service agreement for Next Generation Convergence Core Transport Rollout and Technical Support |
|
Telkomsel, Amdocs Software Solutions Limited Liability Company and PT Application Solutions |
|
February 8, 2010 |
|
Online Charging System (“OCS”) and Service Control Points (“SCP”) System Solution Development Agreement |
|
Telkomsel and PT Application Solutions |
|
February 8, 2010 |
|
Technical Support Agreement to provide technical support services for the OCS and SCP |
|
Telkomsel, PT Nokia Siemens Networks and Nokia Siemens Networks Oy |
|
January 27, 2011 |
|
Soft HLR Rollout agreement |
|
Telkomsel and PT Nokia Siemens Networks |
|
January 27, 2011 |
|
Soft HLR Technical Support Agreement |
|
Telkomsel and PT Nokia Application Solutions |
|
July 5, 2011 |
|
Development and Rollout agreement for Customer Relationship Management and Contact Center solutions |
|
Telkomsel and Nokia Siemens Networks Oy and Huawei Investment |
|
July 11, 2011 |
|
Procurement agreement for equipment |
|
Telkomsel and PT Ericsson Indonesia |
|
December 21, 2011 |
|
Development and Rollout of Operation Support System (“OSS”) |
|
Telkomsel and Huawei International Pte. Ltd and PT Huawei |
|
July 17, 2012 |
|
CS Core System Rollout and CS Core System Technical Support |
|
Telkomsel anD Wipro Limited, Wipro Singapore Pte, Ltd, anD PT WT Indonesia |
|
April 23, 2013 |
|
Development and Rollout of OSDSS Solution |
|
* |
Based on PT Nokia Siemens Network letters in July and September 2012, NSN agreed on a new extension up to December 31, 2012 (Note 47). Based on PT Ericsson Indonesia letter dated October 1, 2012, PT Ericsson Indonesia and Ericsson AB agreed to apply price adjustment to hardware, software and service purchased by Telkomsel up to December 31, 2012. Subsequently, in December 2012, EI and Ericsson AB agreed to extend the period until March 2, 2013. As of the issuance date of the consolidated financial statements, the extension is still in process. |
** |
On January 7, 2013, pursuant to the expiry of the agreement for the procurement of core equipment and related services with NSN, NSN agreed to extend the period of price adjustment by applying a final price to any hardware, software and service of the New Solution purchased by Telkomsel from January 1, 2013 until the earlier of: i. the date that NSN enters into the New CS Core System ROA and/or TSA which supersede the Existing CS Core Agreements with Telkomsel; and ii. January 31, 2013. |
*** |
Note 41c.iii. |
101
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
(iii) GSD
Contracting parties |
|
Date of agreement |
|
Significant provisions of the agreement |
|
TLT and PT Adhi Karya |
|
November 6, 2012 |
|
Service arrangement structure and main contractor architecture for Telkom Landmark Tower Building development project |
|
TLT and PT Indalex |
|
January 31, 2013 |
|
The Facade construction agreement of Telkom Landmark Tower Building development project |
|
TLT and PT Jaya Kencana |
|
May 14, 2013 |
|
Procurement and installation agreement for electrical construction of Telkom Landmark Tower Building development projects |
|
(iv) Dayamitra
Contracting parties |
|
Date of agreement |
|
Significant provisions of the agreement |
|
Dayamitra and PT Aksara Indah |
|
December 11, 2012 |
|
Telecommunication tower development agreement |
|
Dayamitra and PT Citramas Heavy Industries |
|
October 8, 2012 |
|
Telecommunication tower procurement agreement |
|
b. Borrowings and other credit facilities
(i) As of June 30, 2013, the Company has bank guarantee facilities for tender bond, performance bond, maintenance bond, deposit guarantee and advance payment bond for various projects of the Company, as follows:
|
|
|
|
|
|
|
|
Facility utilized |
|
| ||
Lenders |
|
Total facility |
|
Maturity |
|
Currency |
|
Original Currency (in millions) |
|
Rupiah equivalent |
|
|
BRI |
|
250 |
|
14 Maret 2014 |
|
Rp |
|
- |
|
185 |
|
|
|
|
|
|
|
|
US$ |
|
0 |
|
1 |
|
|
BNI |
|
250 |
|
31 Maret 2014 |
|
Rp |
|
- |
|
55 |
|
|
|
|
|
|
|
|
US$ |
|
0 |
|
2 |
|
|
Bank Mandiri |
|
150 |
|
23 Desember 2013 |
|
Rp |
|
- |
|
45 |
|
|
Total |
|
650 |
|
|
|
|
|
|
|
288 |
|
|
(ii) Telkomsel has a US$3 million bond and bank guarantee and standby letter of credit facilities with SCB, Jakarta. The facilities expire on July 31, 2013. Under these facilities, as of June 30, 2013, Telkomsel has issued a bank guarantee of Rp20 billion (equivalent to US$2.1 million) for a 3G performance bond (Note 41c.i). The bank guarantee is valid until March 24, 2014.
(iii) TII has a US$15 million bank guarantee from Bank Mandiri. The facility expires on December 18, 2013. Under this facility, as of June 30, 2013, TII has issued a bank guarantee of Rp99.20 billion (equivalent to US$10 million) for mobile spectrum license performance bond in Timor Leste.
102
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others
(i) 3G license
With reference to the Decision Letter No. 07/PER/M.KOMINFO/2/2006, No. 268/KEP/M.KOMINFO/9/2009 and No. 191 Tahun 2010 of the MoCI (Note 2i), Telkomsel is required, among other things, to:
1. Pay an annual BHP fee which is calculated based on a certain formula over the license term (10 years) as set forth in the Decision Letters. The BHP is payable upon receipt of the notification letter (“Surat Pemberitahuan Pembayaran”) from the DGPI. The BHP fee is payable annually up to the expiry date of the license in 2023. Such fee amount for each year varies depending on certain variables set in the formula.
2. Provide roaming access for the existing other 3G operators.
3. Contribute to USO development.
4. Construct a 3G network which covers at least 14 provinces by the sixth year of holding the 3G license.
5. Issue a performance bond each year amounting to Rp20 billion or 5% of the annual fee to be paid for the subsequent year, whichever is higher.
(ii) Radio Frequency Usage
Based on the Decree No. 76 dated December 15, 2010 of the Government of the Republic of Indonesia, which amended Decree No. 7 dated January 16, 2009, the annual frequency usage fees with a bandwidth of 800 Megahertz (“MHz”), 900 MHz and 1800 MHz are determined using a formula set forth in the Decree. The Decree is applicable for 5 years unless further amended.
As an implementation of the Decree above, on December 15, 2010, in a Decision Letter No. 456A/KEP/M.KOMINFO/12/2010, the MoCI determined that the first year (Y1), 2010, for annual frequency usage fee of Telkomsel with licenses in bandwidth of 900 MHz and 1800 MHz was Rp716 billion which was paid on December 30, 2010.
Based on the same Decision Letter above and Decision Letter No. 5039/T/DJPT.4/KOMINFO/12/2010 dated December 16, 2010, the MoCI determined that the first year (Y1), 2010, for annual frequency usage fee of the Company with licenses in bandwidth of 800 MHz was Rp52 billion which was paid on December 27, 2010.
103
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(ii) Radio Frequency Usage (continued)
Subsequently, based on Decision Letter No. 590/KEP/M.KOMINFO/11/2011 dated November 14, 2011, the Company and Telkomsel were determined to have over paid the fees for Rp31 billion and Rp117 billion, respectively, which will be treated as a prepayment of annual frequency usage fee in the second year.
Based on Decision Letter No. 349/KEP/M.KOMINFO/08/2011 and No. 350/KEP/M.KOMINFO/08/2011 dated August 8, 2011, the MoCI determined that the second year (Y2), 2011, for annual frequency usage fees of the Company and Telkomsel were Rp142 billion and Rp1,834 billion, respectively. The fees were paid in December 2011, net of the prepayment.
Based on Decision Letter No. 495 dated August 29, 2012 and No. 491 dated August 29, 2012, the MoCI determined that the third year (Y3), 2012, for annual frequency usage fees of the Company and Telkomsel were Rp174 billion and Rp1,718 billion, respectively. The fees were paid on December, 2012.
Prior to issuance of the Decree above, in accordance with the prevailing laws and telecommunications regulations, the operators were obliged to register their radio stations with the DGPI to obtain frequency usage license, except those stations that use 2.1 GHz frequency bandwidth (Note 41c.i). The frequency usage fees were payable upon receipt of notification letter (“Surat Pemberitahuan Pembayaran”) from DGPI. The fee was determined based on the number of registered carriers (“TX”) for the Company and transceivers (“TRX”) for Telkomsel of the radio stations with a fee ranging from Rp0.07 million to Rp17.55 million for each TX and from Rp3.4 million to Rp15.9 million for each TRX (Note 7).
(iii) Apple, Inc
On January 9 and July 16, 2009, Telkomsel entered into agreements with Apple, Inc for the purchase of iPhone products, marketing it to customers using third parties (PT Trikomsel OKE and PT Mitra Telekomunikasi Selular) and providing cellular network services over a 3 years term. Subsequently, on July 16, 2012, Telkomsel replaced them with a new agreement. Cumulative minimum iPhone units to be purchased up to June 2015 are at least 500,000 units.
(iv) Future Minimum Lease Payments of Operating Lease
The Company and subsidiaries entered the non-cancelable leased agreements with both third and related parties. The leased agreements consists of leased line, telecommunication equipment and land and building with term ranging from 1 until 10 years and with expiry dates between 2013 to 2022.
104
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(iv) Future Minimum Lease Payments of Operating Lease (continued)
Future minimum lease payments for operating lease agreements as of June 30, 2013 are as follows:
|
Total |
|
Less than 1 year |
|
1-5 years |
|
More than 5 years |
As lessee |
13,516 |
|
1,987 |
|
5,648 |
|
5,881 |
As lessor |
3,593 |
|
1,195 |
|
2,394 |
|
4 |
(v) USO
The MoCI issued Regulation No. 15/PER/M.KOMINFO/9/2005 dated September 30, 2005, which sets forth the basic policies underlying the USO program and requires telecommunications operators in Indonesia to contribute 0.75% of their gross revenues (with due consideration for bad debts and interconnection charges) for USO development. Based on the Government’s Decree No. 7/2009 dated January 16, 2009, the contribution is changed to 1.25% of gross revenues, net of bad debts and/or interconnection charges and/or connection charges. Subsequently, in December 2012, Decree No. 05/PER/M.KOMINFO/2/2007 replaced with Decision Letter No. 45 of 2012 dated January 22, 2013, which set the period for the payment of revenue that are not considered as part of gross revenue as the basis to calculate the USO charges, which previous quarterly to become quarterly or semi-annually.
Based on MoCI Decree No. 32/PER/M.KOMINFO/10/2008 dated October 10, 2008 which replaced MoCI Decree No. 11/PER/M.KOMINFO/04/2007 dated April 13, 2007 and MoCI Decree No. 38/PER/M.KOMINFO/9/2007 dated September 20, 2007, it is stipulated that, among others, in providing telecommunication access and services in rural areas (USO Program), the provider is determined through a selection process by Balai Telekomunikasi dan Informatika Pedesaan (“BTIP”) which was established based on MoCI Decree No. 35/PER/M.KOMINFO/11/2006 dated November 30, 2006. Subsequently, based on Decree No. 18/PER/M.KOMINFO/11/2010 dated November 19, 2010 of MoCI, BTIP was changed into Balai Penyedia dan Pengelola Pembiayaan Telekomunikasi dan Informatika (“BPPPTI”).
a. Company
On March 12, 2010, the Company was selected in a tender by the Government through BTIP to provide internet access service centers for USO sub-districts for a total amount of Rp322 billion, covering Nanggroe Aceh Darussalam, Sumatera Utara, Sulawesi Utara, Gorontalo, Sulawesi Tengah, Sulawesi Barat, Sulawesi Selatan and Sulawesi Tenggara.
On December 23, 2010, the Company was selected in a tender by the Government through BTIP to provide mobile internet access service centers for USO sub-districts for a total amount of Rp528 billion, covering Jambi, Riau, Kepulauan Riau, Sulawesi Utara, Sulawesi Tengah, Gorontalo, Sulawesi Barat, Sulawesi Tenggara, Kalimantan Tengah, Sulawesi Selatan, Papua and Irian Jaya Barat.
105
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(v) USO (continued)
b. Telkomsel
On January 16, 2009 and January 23, 2009, Telkomsel was selected in a tender by the Government through BTIP to provide telecommunication access and services in rural areas (USO Program) for a total amount of Rp1.66 trillion, covering all Indonesian territories except Sulawesi, Maluku and Papua. Telkomsel will obtain local fixed-line licenses and the right to use radio frequency in 2390 MHz - 2400 MHz.
Subsequently, in 2010 and 2011, the agreements were amended, which amendments cover, among other things, changing the price to Rp1.76 trillion and changing the term of payment from quarterly to monthly or quarterly. The revenue under the USO program is Rp237 billion and Rp370 billion in 2012 and 2011, respectively,
In January 2010, the Ministry granted Telkomsel operating licenses to provide local fixed-line services under the USO program.
On December 27, 2011, Telkomsel (on behalf of Konsorsium Telkomsel, a consortium which was established with Dayamitra on December 9, 2011) was selected by BPPPTI as a provider of the USO Program in the border areas for all packages (package 1 to package 13) with a total price of Rp830 billion. On such date, Telkomsel was also selected by BPPPTI as a provider of the USO Program (upgrading) of “Desa Pinter” or “Desa Punya Internet” for 1, 2 and 3 packages with a total price of Rp261 billion.
On January 5, 2012 and January 9, 2012, Telkomsel (on behalf of Konsorsium Telkomsel) entered into agreements with BPPPTI for providing of the USO programs Desa Pinter and in the border areas, respectively.
The agreements contain among other things the following provisions:
· Telkomsel and Konsorsium (“the Parties”) will receive advances representing 15% of the total contract price. Prior to payment of the advances, the Parties should issue bank guarantee with at least the same amount.
· The Parties are required to :
- Issue performance bonds representing 5% of total contract price; and
- Provide end-to-end telecommunication access and services within approximately 60 months which are divided into pre-operating and operating phases.
· The Parties will receive progress payments from BPPPTI based on performance evaluation on a monthly or quarterly basis.
Subsequently, in January 2013, the USO agreements for border areas and Desa Pinter were amended which amandments cover, among other things:
- Extent the pre-operational phase for all Border Area packages to July 31, 2013.
- Extent the pre-operational phase for desa Pinter to Februari 28, 2013 and June 30, 2013 for package 1, and packages 2-3, respectively.
Dayamitra, through Telkomsel, has received the advance from BPPPTI for the USO Program in border areas amounting to Rp113 billion (net of tax). The bank guarantees for the advance and performance bonds were issued by Dayamitra. Part of the advance amounting to Rp28 billion was recorded as part of other current assets and the remainder was recorded as part of other non-current assets.
106
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(v) USO (continued)
b. Telkomsel (continued)
Telkomsel has received the advance from BPPPTI for the USO Program of Desa Pinter amounting to Rp36 billion (net of tax). Telkomsel had issued bank guarantees with a total amount of Rp52 billion for the advance and as performance bonds.
Part of the advances received from BPPPTI from the USO Program in border areas and Desa Pinter totaling Rp37 billion was recorded as part of accounts payable.
On June 30, 2013, the Company’s and Telkomsel’s trade receivables of the USO programs which are measured at amortized cost using the effective interest method is amounting to Rp763 billion (Notes 5 and 11).
42. CONTINGENCIES
a. In the ordinary course of business, the Company and subsidiaries have been named as defendants in various legal actions in relation with land disputes, monopolistic practice and unfair business competition and SMS cartel practices. Based on management's estimate of the probable outcomes of these matters, the Company and subsidiaries have recognized provision for losses amounting to Rp52 billion as of June 30, 2013.
b. The Company, Telkomsel and seven other local operators are being investigated by The Commission for the Supervision of Business Competition (“Komisi Pengawasan Persaingan Usaha” or “KPPU”) for allegations of SMS cartel practices. As a result of the investigations on June 17, 2008, KPPU found that the Company, Telkomsel and certain other local operators had violated Law No. 5 year 1999 article 5 and charged the Company and Telkomsel penalty in the amount of Rp18 billion and Rp25 billion, respectively.
Management believes that there are no such cartel practices that led to a breach of prevailing regulations. Accordingly, the Company and Telkomsel have filed an appeal with the Bandung District Court and South Jakarta District Court, on July 14, 2008 and July 11, 2008, respectively.
Due to the filling of case by operators in various courts, subsequently, the KPPU requested the SC to consolidate the cases into Central Jakarta District Court. Based on the SC’s decision letter dated April 12, 2011, the SC appointed the Central Jakarta District Court to investigate and resolve the case.
As of the issuance date of the consolidated financial statements, there has not received any notification from the court.
c. Pursuant to the dispute between Telkomsel and PT Prima, a distributor of Telkomsel of pulse reload vouchers under a distribution agreement by both parties, based on its verdict on September 14, 2012, the Central Jakarta District Court accepted a bankruptcy petition against Telkomsel filed by PT Prima.
107
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
42. CONTINGENCIES (continued)
c. (continued).
The bankruptcy petition was filed by PT Prima on the basis of:
• PT Prima’s claim on overdue receivables from Telkomsel amounting to Rp5.26 billion which represents undelivered pulse reload vouchers based on orders covered by purchase orders
• Receivable of another company from Telkomsel
Telkomsel argued that the payable to the other company has been paid and PT Prima has no right to claim receivable from Telkomsel, considering that PT Prima has not made any payment to Telkomsel on its orders and it has breached the terms and conditions as stipulated in the above-mentioned agreement. Therefore, the requirement for a bankruptcy petition should not have been met.
Accordingly, Telkomsel has taken necessary actions to resolve the case including filing an appeal to the Supreme Court (“SC”) on September 21, 2012.
On November 21, 2012, within the SC’s verdict No. 704 K/Pdt.Sus/2012, SC decided to:
• Approve the Telkomsel’s appeals
• Revoke the Central Jakarta District Court’s verdict
On January 31, 2013, the CJDC decided that the curator fee of Rp147 billion, shall be borne by Telkomsel. Telkomsel refuse to pay such fee, accordingly, through its letter dated February 12, 2013, Telkomsel requested the SC amongst other things, to revoke the CJDC’s decision due to that the decision is not based on applicable guidelines as stipulated by Decree of Ministry of Law and Human Rights No. 01 Year 2013 dated 11 January 2013. Pursuant to that, Telkomsel has also filed a judicial Review (“Peninjauan Kembali” or “PK”) to the SC on February 28, 2013.
As of the date of approval and authorization for issuance of these consolidated financial statements, the request and PK are still in process.
The Company and subsidiaries do not believe that any subsequent investigation or court decision on the above matters and cases will have significant financial impact to the Company and subsidiaries.
43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies balances are as follows:
|
June 30, 2013 (in millions) | |||||||
|
U.S. Dollars (in millions) |
|
Japanese Yen (in millions) |
|
Others* (in millions |
|
Rupiah equivalent (in billions) |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
360.70 |
|
1.20 |
|
9.23 |
|
3,672 |
|
Other current financial assets |
17.88 |
|
|
|
- |
|
177 |
|
Trade receivables |
|
|
|
|
|
|
|
|
Related parties |
33.32 |
|
- |
- |
- |
|
331 |
|
Third parties |
80.04 |
|
|
|
0.35 |
|
797 |
|
Other receivables |
4.76 |
|
|
|
0.06 |
|
47 |
|
Advances and other non-current assets |
2.64 |
|
|
|
- |
|
26 |
|
Total assets |
499.34 |
|
1.20 |
|
9.64 |
|
5,050 |
|
Liabilities |
|
|
|
|
|
|
|
|
Trade payables |
|
|
|
|
|
|
|
|
Related parties |
(1.34 |
) |
- |
|
(0.18 |
) |
(15) |
|
Third parties |
(368.46 |
) |
(5.71 |
) |
(2.04 |
) |
(3,672) |
|
Other payables |
(0.93 |
) |
- |
|
(0.14 |
) |
(10) |
|
Accrued expenses |
(93.17 |
) |
(31.50 |
) |
(2.80 |
) |
(954) |
|
Advances from customers and suppliers |
(0.8 |
) |
- |
|
(0.19 |
) |
(10) |
|
Current maturities of long-term liabilities |
(30.70 |
) |
(767.90 |
) |
- |
|
(382) |
|
Promissory notes |
(44.97 |
) |
- |
|
- |
|
(447) |
|
Long-term liabilities - net of current maturities |
(95.34 |
) |
(8,062.93 |
) |
- |
|
(1,756) |
|
Total liabilities |
(635.71 |
) |
(8,868.04 |
) |
(5.35 |
) |
(7,246) |
|
Liabilities - net |
(136.37 |
) |
(8,866.84 |
) |
4.29 |
|
(2,196 |
) |
* Assets and liabilities denominated in other foreign currencies are presented as U.S. Dollars equivalents using the exchange rates prevailing at end of the reporting period.
108
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (continued)
|
December 31, 2012 (in millions) | |||||||
|
U.S. Dollars (in millions) |
|
Japanese Yen (in millions) |
|
Others* (in millions) |
|
Rupiah Equivalent (in billions) |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
412.69 |
|
1.33 |
|
6.38 |
|
4,042 |
|
Other current financial assets |
7.17 |
|
- |
|
- |
|
69 |
|
Trade receivables |
|
|
|
|
|
|
|
|
Related parties |
9.03 |
|
- |
|
- |
|
87 |
|
Third parties |
74.89 |
|
- |
|
0.44 |
|
727 |
|
Other receivables |
1.20 |
|
- |
|
0.06 |
|
12 |
|
Advances and other non-current assets |
9.89 |
|
- |
|
- |
|
95 |
|
Total assets |
514.87 |
|
1.33 |
|
6.88 |
|
5,032 |
|
Liabilities |
|
|
|
|
|
|
|
|
Trade payables |
|
|
|
|
|
|
|
|
Related parties |
(1.49 |
) |
- |
|
- |
|
(14 |
) |
Third parties |
(320.34 |
) |
- |
|
(2.41 |
) |
(3,120 |
) |
Other payables |
(0.92 |
) |
- |
|
(0.13 |
) |
(10 |
) |
Accrued expenses |
(75.07 |
) |
(32.87 |
) |
(3.00 |
) |
(759 |
) |
Short-term bank loans |
(0.42 |
) |
- |
|
- |
|
(4 |
) |
Advances from customers and suppliers |
(0.80 |
) |
- |
|
(0.20 |
) |
(10 |
) |
Current maturities of long-term liabilities |
(30.75 |
) |
(767.90 |
) |
- |
|
(383 |
) |
Promissory notes |
(68.62 |
) |
- |
|
- |
|
(661 |
) |
Long-term liabilities - net of current maturities |
(112.84 |
) |
(8,446.87 |
) |
- |
|
(2,035 |
) |
Total liabilities |
(611.25 |
) |
(9,247.64 |
) |
(5.74 |
) |
(6,996 |
) |
Liabilities - net |
(96.38 |
) |
(9,246.31 |
) |
1.14 |
|
(1,964 |
) |
* Assets and liabilities denominated in other foreign currencies are presented as U.S. Dollars equivalents using the exchange rates prevailing at end of the reporting period.
The Company and subsidiaries’ activities expose them to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates and interest rates.
If the Company and subsidiaries report monetary assets and liabilities in foreign currencies as of June 30, 2013 using the exchange rates on July 18, 2013, the unrealized foreign exchange gain will decrease by Rp29 billion.
44. FINANCIAL RISK MANAGEMENT
1. Financial risk management
The Company and subsidiaries activities expose them to a variety of financial risks such as market risks (including foreign exchange risk and interest rate risk), credit risk and liquidity risk. Overall, the Company and subsidiaries’ financial risk management program is intended for minimizing lossess on the financial assets and financial liabilities arising from fluctuation of foreign currency exchange rates and the fluctuation of interest rates. Management has a written policy for foreign currency risk management mainly through time deposits placements and hedging to cover foreign currency risk exposures for periods ranging from 3 up to 12 months.
109
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
44. FINANCIAL RISK MANAGEMENT (continued)
1. Financial risk management (continued)
Financial risk management is carried out by the Treasury Management unit under policies approved by the Board of Directors. The Treasury Management Unit identifies, evaluates and hedges financial risks.
a. Foreign exchange risk
The Company and subsidiaries are exposed to foreign exchange risk on sales, purchases and borrowings that are denominated in foreign currencies. The foreign currency denominated transactions are primarily in U.S. Dollars and Japanese Yen. The Company and subsidiaries exposure to other foreign exchange rates are not material.
Increasing risks of foreign currency exchange rates on the obligations of the Company and subsidiaries are expected to be offset by time deposits and receivables in foreign currencies that are equal to at least 25% of the outstanding current liabilities.
The following table presents the Company and subsidiaries’ financial assets and financial liabilities exposure to foreign currency risk:
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
U.S. Dollars (in billions) |
|
Japanese Yen (in billions) |
|
U.S. Dollars (in billions) |
|
Japanese Yen (in billions) |
|
Financial assets |
0.49 |
|
0.00 |
|
0.51 |
|
0.00 |
|
Financial liabilities |
(0.63 |
) |
(8.87 |
) |
(0.61 |
) |
(9.25 |
) |
Net exposure |
(0.14 |
) |
(8.87 |
) |
(0.10 |
) |
(9.25 |
) |
Sensitivity analysis
A strengthening of the U.S. Dollars and Japanese Yen, as indicated below, against the Rupiah at June 30, 2013 would have decreased equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Company and subsidiaries considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant.
|
Equity/profit (loss) |
|
June 30, 2013 |
|
|
U.S. Dollars (1% strengthening) |
(14 |
) |
Japanese Yen (5 % strengthening) |
(45 |
) |
A weakening of the U.S. Dollars and Japanese Yen against the Rupiah at June 30, 2013 would have had an equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.
110
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
44. FINANCIAL RISK MANAGEMENT (continued)
1. Financial risk management (continued)
b. Market price risk
The Company and subsidiaries are exposed to changes in debt and equity market prices related to available-for-sale investments carried at fair value. Gains and losses arising from changes in the fair value of available-for-sale investments are recognized in equity.
The performance of the Company and subsidiaries’ available-for-sale investments are monitored periodically, together with a regular assesment of their relevance to the Company and subsidiaries’ long-term strategic plans.
As of June 30, 2013, management considered the price risk for its available-for-sale investments to be immaterial in terms of the possible impact on profit or loss and total equity from a reasonably possible change in fair value.
c. Interest rate risk
Interest rate fluctuation is monitored to minimize any negative impact to financial position. Borrowings at variable interest rates expose the Company and subsidiaries to interest rate risk (Notes 16, 17, 18, 19 and 20). To measure market risk pertaining to fluctuations in interest rates, the Company and subsidiaries primarily use interest margin and maturity profile of the financial assets and liabilities based on changing schedule of the interest rate.
At reporting date, the interest rate profile of the Company and subsidiaries’ interest-bearing borrowings was as follows:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Fixed rate borrowings |
(12,070 |
) |
(7,025 |
) |
Variable rate borrowings |
(7,797 |
) |
(12,250 |
) |
Sensitivity analysis for variable rate borrowings
At June 30, 2013, a change of 25 basis points in interest rates of variable rate borrowings would have increased (decreased) equity and profit or loss by Rp30 billion, respectively. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
d. Credit risk
The following table presents the maximum exposure to credit risk of the Company and subsidiaries’ financial assets:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Cash and cash equivalents |
11,551 |
|
13,118 |
|
Other current financial assets |
696 |
|
4,338 |
|
Trade and other receivables, net |
7,139 |
|
5,409 |
|
Long-term investments |
21 |
|
21 |
|
Advances and other non-current assets |
455 |
|
614 |
|
Total |
19,862 |
|
23,500 |
|
111
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
44. FINANCIAL RISK MANAGEMENT (continued)
1. Financial risk management (continued)
d. Credit risk (continued)
The Company and subsidiaries are exposed to credit risk primarily from trade receivables and other receivables. The credit risk is managed by continuous monitoring of outstanding balances and collection of trade and other receivables.
Trade and other receivables do not include any major concentration of credit risk by customer. Each of the top three customers account for less than 1% of the trade receivables as at June 30, 2013.
Management is confident in its ability to continue to control and sustain minimal exposure to credit risk given that the Company and subsidiaries have provided sufficient provision for impairment of receivables to cover incurred loss arising from uncollectible receivables based on existing historical data on credit losses.
e. Liquidity risk
Liquidity risk arises in situations where the Company and subsidiaries have difficulties in fulfilling financial liabilities when they become due.
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents in order to meet the Company and subsidiaries’ financial obligations. The Company and subsidiaries continuously perform an analysis to monitor financial position ratios, among other things, liquidity ratios, debt equity ratios against debt covenant requirements.
The following is the maturity profile of the Company and subsidiaries’ financial liabilities:
|
|
Carrying amount |
|
Contractual cash flows |
|
2013 |
|
2014 |
|
2015 |
|
2016 |
|
2017 and thereafter |
|
June 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
8,472 |
|
(8,472 |
) |
(8,472 |
) |
- |
|
- |
|
- |
|
- |
|
Accrued expenses |
|
5,622 |
|
(5,622 |
) |
(5,622 |
) |
- |
|
- |
|
- |
|
- |
|
Loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans |
|
11,058 |
|
(12,128 |
) |
(4,071 |
) |
(2,913 |
) |
(2,600 |
) |
(1,091 |
) |
(1,453 |
) |
Obligations under finance leases |
|
3,306 |
|
(5,474 |
) |
(1,078 |
) |
(496 |
) |
(827 |
) |
(568 |
) |
(2,505) |
|
Two-step loans |
|
1,799 |
|
(2,212 |
) |
(270 |
) |
(133 |
) |
(260 |
) |
(253 |
) |
(1,296) |
|
Bonds and notes |
|
3,447 |
|
(5,064 |
) |
(644 |
) |
(225 |
) |
(1,282 |
) |
(203 |
) |
(2,710) |
|
Total |
|
33,704 |
|
(38,972) |
|
(20,157 |
) |
(3,767 |
) |
(4,969 |
) |
(2,115 |
) |
(7,964 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
Contractual cash flows |
2013 |
|
2014 |
|
2015 |
|
2016 |
|
2017 and thereafter |
| |
December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
7,456 |
|
(7,456 |
) |
(7,456 |
) |
- |
|
- |
|
- |
|
- |
|
Accrued expenses |
|
6,163 |
|
(6,163 |
) |
(6,163 |
) |
- |
|
- |
|
- |
|
- |
|
Loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans |
|
11,295 |
|
(12,585 |
) |
(5,118 |
) |
(3,869 |
) |
(2,518 |
) |
(602 |
) |
(478 |
) |
Obligations under finance leases |
|
2,324 |
|
(3,172 |
) |
(652 |
) |
(548 |
) |
(398 |
) |
(354 |
) |
(1,220 |
) |
Two-step loans |
|
1,987 |
|
(2,462 |
) |
(283 |
) |
(277 |
) |
(270 |
) |
(263 |
) |
(1,369 |
) |
Bonds and notes |
|
3,669 |
|
(5,462 |
) |
(757 |
) |
(505 |
) |
(1,287 |
) |
(203 |
) |
(2,710 |
) |
Total |
|
32,894 |
|
(37,300) |
|
(20,429) |
|
(5,199 |
) |
(4,473 |
) |
(1,422 |
) |
(5,777 |
) |
The difference of carrying amount and contractual cash flows is interest value.
112
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
44. FINANCIAL RISK MANAGEMENT (continued)
2. Fair value of financial assets and financial liabilities
a. Fair value measurement
Fair value is the amount for which an asset could be exchanged, or liability settled, between knowledgeable, willing parties in an arms-length transaction.
The Company and subsidiaries determined the fair value measurement for disclosure purposes of each class of financial assets and financial liabilities based on the following methods and assumptions:
(i) The fair values of short-term financial assets and financial liabilities with maturities of one year or less (cash and cash equivalents, trade receivables, other receivables, other current assets, trade payables, other payables, dividend payables, accrued expenses, advance from customers and suppliers and short-term bank loans) are considered to approximate their carrying amounts as the impact of discounting is not significant .
(ii) Available-for-sale financial assets are primarily comprised of shares, mutual funds and Corporate and Government bonds. Shares and mutual funds actively traded in an established market are stated at fair value using quoted market price or if unquoted, determined using a valuation technique. Corporate and Government bonds are stated at fair value by reference to prices of similar securities at the reporting date.
(iii) The fair values of long-term financial liabilities are estimated by discounting the future contractual cash flows of each liability at rates offered to the Company and subsidiaries for similar liabilities of comparable maturities by the bankers of the Company and subsidiaries, except for bonds which are based on market prices.
The fair value estimates are inherently judgmental and involve various limitations, including:
a. Fair values presented do not take into consideration the effect of future currency fluctuations.
b. Estimated fair values are not necessarily indicative of the amounts that the Company and subsidiaries would record upon disposal/termination of the financial assets and liabilities.
b. Classification and fair value
The following table presents the carrying value and estimated fair values of the Company and subsidiaries' financial assets and liabilities based on their classifications:
|
|
June 30, 2013 |
| ||||||||||
|
|
Trading |
|
Loans and receivables |
|
Available for sale |
|
Other financial liabilities |
|
Total carrying amount |
|
Fair value |
|
Cash and cash equivalents |
|
- |
|
11,551 |
|
- |
|
- |
|
11,551 |
|
11,551 |
|
Other current financial assets |
|
- |
|
383 |
|
313 |
|
- |
|
695 |
|
695 |
|
Trade and other receivables, net |
|
- |
|
7,139 |
|
- |
|
- |
|
7,139 |
|
7,139 |
|
Long-term investments |
|
- |
|
- |
|
21 |
|
- |
|
21 |
|
21 |
|
Advances and other non-current assets |
|
- |
|
455 |
|
- |
|
- |
|
455 |
|
455 |
|
Total financial assets |
|
- |
|
19,528 |
|
334 |
|
- |
|
23,447 |
|
19,862 |
|
Trade and other payables |
|
- |
|
- |
|
- |
|
(8,472) |
|
(8,472) |
|
(8,472) |
|
Accrued expenses |
|
- |
|
- |
|
- |
|
(5,622) |
|
(5,622) |
|
(5,622) |
|
Loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank loans |
|
- |
|
- |
|
- |
|
(257) |
|
(257) |
|
(257) |
|
Obligations under finance leases |
|
- |
|
- |
|
- |
|
(3,306) |
|
(3,306) |
|
(3,306) |
|
Two-step loans |
|
- |
|
- |
|
- |
|
(1,798) |
|
(1,798) |
|
(1,832) |
|
Bonds and notes |
|
- |
|
- |
|
- |
|
(3,447) |
|
(3,447) |
|
(3,588) |
|
Long-term bank loans |
|
- |
|
- |
|
- |
|
(11,057) |
|
(11,057) |
|
(11,018) |
|
Total financial liabilities |
|
- |
|
- |
|
- |
|
(33,959) |
|
(33,959) |
|
(34,095) |
|
113
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
44. FINANCIAL RISK MANAGEMENT (continued)
2. Fair value of financial assets and financial liabilities (continued)
b. Classification and fair value (continued)
|
|
December 31, 2012 |
| ||||||||||
|
|
Trading |
|
Loans and receivables |
|
Available for sale |
|
Other financial liabilities |
|
Total carrying amount |
|
Fair value |
|
Cash and cash equivalents |
|
- |
|
13,118 |
|
- |
|
- |
|
13,118 |
|
13,118 |
|
Other current financial assets |
|
- |
|
4,028 |
|
310 |
|
- |
|
4,338 |
|
4,338 |
|
Trade and other receivables, net |
|
- |
|
5,409 |
|
- |
|
- |
|
5,409 |
|
5,409 |
|
Long-term investments |
|
- |
|
- |
|
21 |
|
- |
|
21 |
|
21 |
|
Advances and other non-current assets |
|
- |
|
614 |
|
- |
|
- |
|
614 |
|
614 |
|
Total financial assets |
|
- |
|
23,169 |
|
331 |
|
- |
|
23,500 |
|
23,500 |
|
Trade and other payables |
|
- |
|
- |
|
- |
|
(7,456) |
|
(7,456) |
|
(7,456) |
|
Accrued expenses |
|
- |
|
- |
|
- |
|
(6,163) |
|
(6,163) |
|
(6,163) |
|
Loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank loans |
|
- |
|
- |
|
- |
|
(37) |
|
(37) |
|
(37) |
|
Obligations under finance leases |
|
- |
|
- |
|
- |
|
(2,324) |
|
(2,324) |
|
(2,324) |
|
Two-step loans |
|
- |
|
- |
|
- |
|
(1,987) |
|
(1,987) |
|
(2,075) |
|
Bonds and notes |
|
- |
|
- |
|
- |
|
(3,669) |
|
(3,669) |
|
(4,022) |
|
Long-term bank loans |
|
- |
|
- |
|
- |
|
(11,258) |
|
(11,258) |
|
(11,346) |
|
Total financial liabilities |
|
- |
|
- |
|
- |
|
(32,894 |
) |
(32,894 |
) |
(33,423) |
|
c. Fair value hierarchy
The table below presents the recorded amount of financial assets measured at fair value and limited mutual funds participation unit for debt-based securities where the Net Asset Value (“NAV”) per share of the investments information is not published as explained below:
|
|
June 30, 2013 |
| ||||||
|
|
|
|
Fair value measurement at reporting date using |
| ||||
|
|
Balance |
|
Quoted prices in active markets for identical assets or liabilities (level 1) |
|
Significant other observable inputs (level 2) |
|
Significant unobservable inputs (level 3) |
|
Financial assets |
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
313 |
|
50 |
|
215 |
|
48 |
|
|
December 31, 2012 | |||||||
|
|
Fair value measurement at reporting date using | ||||||
|
Balance |
|
Quoted prices in active markets for identical assets or liabilities (level 1) |
|
Significant other Observable inputs (level 2) |
|
Significant unobservable inputs (level 3) |
|
Financial assets |
|
|
|
|
|
|
|
|
Available-for-sale securities |
310 |
|
52 |
|
210 |
|
48 |
|
114
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
44. FINANCIAL RISK MANAGEMENT (continued)
2. Fair value of financial assets and financial liabilities (continued)
c. Fair value hierarchy (continued)
Available-for-sale financial assets are primarily comprised of shares, mutual funds and Corporate and Government bonds. Corporate and Government bonds are stated at fair value by reference to prices of similar securities at the reporting date. As they are not actively traded in an established market, these securities are classified as level 2.
Shares and mutual funds actively traded in an established market are stated at fair value using quoted market price and classified within level 1. The valuation of the mutual funds invested in Corporate and Government bonds require significant management judgment due to the absence of quoted market prices, the inherent lack of liquidity and the long-term nature of such assets. As these investments are subject to restrictions on redemption (such as transfer restrictions and initial lock-up periods) and observable activity for the investments is limited, these investments are therefore classified within level 3 of the fair value hierarchy.Management considers among other assumptions, the valuation and quoted price of the arrangement of the mutual funds.
Reconciliations of the beginning and ending balance for items measured at fair value using significant unobservable inputs (level 3) as of June 30, 2013 and 2012 are as follows:
|
2013 |
|
2012 |
|
Mutual funds |
|
|
|
|
Balance 1 Januari |
48 |
|
64 |
|
Purchase |
- |
|
8 |
|
Included in consolidated statement of comprehensive income |
|
|
|
|
Realized loss-recognized in profit or loss |
- |
|
(0 |
) |
Unrealized loss-recognized in other comprehensive income |
- |
|
(0 |
) |
Redemption |
- |
|
(21 |
) |
Balance 30 Juni |
48 |
|
51 |
|
45. CAPITAL MANAGEMENT
The capital structure of the Company and subsidiaries is as follows:
|
June 30, 2013 |
|
December 31, 2012 |
| ||||
|
Amount |
|
Portion |
|
Amount |
|
Portion |
|
Short-term debts |
257 |
|
0.36% |
|
37 |
|
0.05% |
|
Long-term debts |
19,608 |
|
27.68% |
|
19,238 |
|
27.17% |
|
Total debts |
19,865 |
|
28.05% |
|
19,275 |
|
27.22% |
|
Equity attributable to owners |
50,966 |
|
71.95% |
|
51,541 |
|
72.78% |
|
Total |
70,831 |
|
100.00% |
|
70,816 |
|
100.00% |
|
115
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 (UNAUDITED) AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) AND
FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 (UNAUDITED)
(Figures in tables are presented in billions of Rupiah, unless otherwise stated)
45. CAPITAL MANAGEMENT (continued)
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for stockholders and benefits to other stockholders and to maintain an optimum capital structure to minimize the cost of capital.
Periodically, the Company conducts debt valuation to assess possibilities of refinancing existing debts with the new ones which have more efficient cost that will lead to more optimized cost-of-debt. In case of rich idle cash coupled with limited investment opportunities, the Company will consider buying back its stocks or paying dividend to its stockholders.
In addition to complying with loan covenants, the Company also maintains its capital structure at the level it believes will not risk its credit rating and that is comparable with its competitors.
Debt to equity ratio (comparing net interest-bearing-debt to total equity) is a ratio which is monitored by management to evaluate the Company’s capital structure and review the effectiveness of the Company’s debts. The Company monitors its debt levels to ensure the debt to equity ratio complies with or is below the ratio set out in its contractual borrowings and that such ratios are comparable or better than other regional area entities in the telecommunications industry.
The Company’s debt to equity ratio as of June 30, 2013 and December 31, 2012 is as follows:
|
Juni 30, 2013 |
|
December 31, 2012 |
|
Total interest bearing debts |
19,865 |
|
19,275 |
|
Less: Cash and cash equivalents |
|
|
(13,118 |
) |
Net debts |
(11,551 |
) |
6,157 |
|
Total equity attributable to owners |
50,996 |
|
51,541 |
|
Net debt to equity ratio |
16.3% |
|
11.95% |
|
As stated in Notes 18, 19, 20, the Company is required to maintain a certain debt to equity ratio and debt service coverage ratio by the lenders. During six months period ended June 30, 2013 and the years ended December 31, 2012, the Company has complied with the externally imposed capital requirements.
46. SUPPLEMENTAL CASH FLOWS INFORMATION
Certain investing and financing transactions do not require the use of cash and cash equivalents (non-cash investing and financing activities) although they affect the capital and asset structure of the Company and subsidiaries. The non-cash investing and financing activities for six months period ended June 30, 2013 and 2012 are as follows:
|
2013 |
|
2012 |
|
Acquisition of property and equipment through: |
|
|
|
|
Trade payables |
4,106 |
|
6,266 |
|
Obligation under finance leases |
1,188 |
|
732 |
|
Non-monetary exchange |
120 |
|
4 |
|
Undrawn borrowing facilities |
1,762 |
|
4,367 |
|
Reclassification of property and equipment to asset held for sale |
131 |
|
128 |
|
47. SUBSEQUENT EVENTS
On July 2, 2013, TII established a subsidiary in Malaysia named Telekomunikasi Indonesia International (Malaysia) Sdn. Bhd. as stated on Certificate of Incorporation of a Private Limited Company by Companies Commission of Malaysia dated July 2, 2013 company number MyCoID 1052400A. The subsidiary is engaged in providing telecommunication services.