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 October, 2015
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.
Date October 29, 2015 |
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk
----------------------------------------------------- (Registrant)
By: /s/ Heri Sunaryadi ---------------------------------------------------- (Signature)
Heri Sunaryadi Director of Finance
|
Perusahaan Perseroan (Persero)
PT Telekomunikasi Indonesia Tbk and its subsidiaries
Consolidated financial statements as of September 30, 2015 (unaudited) and for the nine months period then ended (unaudited)
Statement of the Board of Directors
regarding the Board of Director’s Responsibility for
Consolidated financial statements as of September 30, 2015
and for nine months period ended (unaudited)
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk and its Subsidiaries
On behalf of the Board of Directors, we undersigned:
1. Name :Alex J. Sinaga
Business address :Jl. Japati No.1 Bandung 40133
Address :Jl. Anggrek Nelimurni B-70 No. 38Kelurahan Kemanggisan
Kecamatan Palmerah, Jakarta Barat
Phone :(022) 452 7101
Position :President Director
2. Name :Heri Sunaryadi
Business address :Jl. Japati No.1 Bandung 40133
Address :Jl. Graha Taman Blok HC8 No.5 Bintaro Jaya Sektor 9
Kelurahan Pondok Pucung Kecamatan Pondok Aren,
Tangerang Selatan
Phone :(022) 452 7201/ 021 520 9824
Position :Director of Finance
We hereby state as follows:
1. We are responsible for the preparation and presentation of the consolidated financial statement of PT Telekomunikasi Indonesia Tbk (the “Company”) and its subsidiaries;
2. The Company and its subsidiaries’ consolidated financial statement have been prepared and presented in accordance with Indonesianfinancial accounting standards;
3. All information has been fully and correctly disclosed in the Company and its subsidiaries’consolidated financial statement;
4. The Company and its subsidiaries’ consolidated financial statement do not contain false material information or facts, nor do they omit any material information or facts;
5. We are responsible for the Company and its subsidiaries’ internal control system.
This statement is considered to be true and correct.
Jakarta, October, 2015
/s/ Alex Sinaga |
|
/s/ Heri Sunaryadi |
Alex J. Sinaga |
|
Heri Sunaryadi |
President Director |
|
Director of Finance |
These consolidated financial statements are originally issued in Indonesian language
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2015 AND FOR THE NINE MONTHS PERIOD THEN ENDED (UNAUDITED)
|
Page |
1-3 |
|
Consolidated Statement of Profit or Loss and Other Comprehensive Income |
4 |
5-6 |
|
7 |
|
8-131 |
These consolidated financial statements are originally issued in Indonesian language
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of September 30, 2015 (unaudited), December 31, 2014 (restated) and January 1, 2014 (restated)
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
|
|
|
|
|
|
2014 |
|
January 1, 2014 |
|
|
|
Notes |
|
2015 |
|
(Restated) |
|
(Restated) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
2c,2e,2u,4,36,42 |
|
26,264 |
|
17,672 |
|
14,696 |
|
Other current financial assets |
|
2c,2d,2e,2u,5,36,42 |
|
2,997 |
|
2,797 |
|
6,872 |
|
Trade receivables - net of provision for impairment of receivables |
|
2g,2u,6,16,19,20,28,42 |
|
|
|
|
|
|
|
Related parties |
|
2c,36 |
|
624 |
|
873 |
|
1,103 |
|
Third parties |
|
|
|
8,790 |
|
6,124 |
|
5,520 |
|
Other receivables - net of provision for impairment of receivables |
|
2g,2u,42 |
|
456 |
|
383 |
|
395 |
|
Inventories - net of provision for obsolescence |
|
2h,7,16,19,20 |
|
690 |
|
474 |
|
509 |
|
Advances and prepaid expenses |
|
2c,2i,8,36 |
|
4,186 |
|
4,733 |
|
3,937 |
|
Claim for tax refund |
|
2t,30 |
|
66 |
|
291 |
|
10 |
|
Prepaid taxes |
|
2t,30 |
|
1,513 |
|
890 |
|
525 |
|
Asset held for sale |
|
2j,10 |
|
- |
|
57 |
|
105 |
|
Total Current Assets |
|
|
|
45,586 |
|
34,294 |
|
33,672 |
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
Long-term investments |
|
2f,2u,9 |
|
1,762 |
|
1,767 |
|
304 |
|
Property and equipment - net of accumulated depreciation |
|
2d,2l,2m,2n,10,16,19,20 |
|
98,900 |
|
94,809 |
|
86,761 |
|
Prepaid pension benefit costs |
|
2s,33 |
|
1,058 |
|
1,170 |
|
949 |
|
Advances and other non-current assets |
|
2c,2i,2l,2n,2u,11,36,39,42 |
|
7,271 |
|
6,479 |
|
4,795 |
|
Claims for tax refund - net of current portion |
|
2t,30 |
|
852 |
|
745 |
|
499 |
|
Intangible assets - net of accumulated amortization |
|
2d,2k,2n,12 |
|
2,828 |
|
2,463 |
|
1,508 |
|
Deferred tax assets - net |
|
2t,30 |
|
137 |
|
95 |
|
67 |
|
Total Non-current Assets |
|
|
|
112,808 |
|
107,528 |
|
94,883 |
|
TOTAL ASSETS |
|
|
|
158,394 |
|
141,822 |
|
128,555 |
|
The accompanying notes to the consolidated financial statements form an integral part ofthese consolidated financial statements taken as a whole.
1 |
These consolidated financial statements are originally issued in Indonesian language
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
As of September 30, 2015 (unaudited), December 31, 2014 (restated) and January 1, 2014 (restated)
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
|
|
|
|
|
2014 |
|
January 1, 2014 |
|
|
Notes |
|
2015 |
|
(Restated) |
|
(Restated) |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Trade payables |
2o,2r,2u,13,42 |
|
|
|
|
|
|
|
Related parties |
2c,36 |
|
1,195 |
|
897 |
|
1,029 |
|
Third parties |
|
|
10,648 |
|
11,465 |
|
11,168 |
|
Other payables |
2u,42 |
|
1,657 |
|
114 |
|
388 |
|
Taxes payable |
2t,30 |
|
3,202 |
|
2,376 |
|
1,698 |
|
Accrued expenses |
2c,2r,2u,14,26,33,36,42 |
|
8,128 |
|
5,211 |
|
5,264 |
|
Unearned income |
2r,15 |
|
3,485 |
|
3,963 |
|
3,490 |
|
Advances from customers and suppliers |
2c,36 |
|
586 |
|
583 |
|
472 |
|
Short-term bank loans |
2c,2p,2u,16,36,42 |
|
427 |
|
1,810 |
|
432 |
|
Current maturities of long-term liabilities |
2c,2m,2p,2u,17,36,42 |
|
4,582 |
|
5,899 |
|
5,093 |
|
Total Current Liabilities |
|
|
33,910 |
|
32,318 |
|
29,034 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Deferred tax liabilities - net |
2t,30 |
|
2,216 |
|
2,703 |
|
2,908 |
|
Other liabilities |
2r |
|
306 |
|
394 |
|
472 |
|
Long service award provisions |
2s,34 |
|
432 |
|
410 |
|
336 |
|
Post-retirement health care benefit costs provisions |
2s,35 |
|
624 |
|
441 |
|
993 |
|
Pension and other post-employment benefits |
2s,33 |
|
3,833 |
|
3,674 |
|
3,265 |
|
Long-term liabilities - net of current maturities |
2u,17,42 |
|
|
|
|
|
|
|
Obligations under finance leases |
2m,10 |
|
4,083 |
|
4,218 |
|
4,321 |
|
Two-step loans |
2c,2p,18,36 |
|
1,442 |
|
1,408 |
|
1,702 |
|
Bonds and notes |
2c,2p,19,36 |
|
9,507 |
|
2,239 |
|
3,073 |
|
Bank loans |
2c,2p,20,36 |
|
14,956 |
|
7,878 |
|
5,635 |
|
Total Non-current Liabilities |
|
|
37,399 |
|
23,365 |
|
22,705 |
|
TOTAL LIABILITIES |
|
|
71,309 |
|
55,683 |
|
51,739 |
|
The accompanying notes to the consolidated financial statements form an integral part ofthese consolidated financial statements taken as a whole.
2 |
These consolidated financial statements are originally issued in Indonesian language
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
As of September 30, 2015 (unaudited), December 31, 2014 (restated) and January 1 2014 (restated)
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
|
|
|
|
|
2014 |
|
January 1, 2014 |
|
|
Notes |
|
2015 |
|
(Restated) |
|
(Restated) |
|
EQUITY |
|
|
|
|
|
|
|
|
Capital stock - Rp50 par value per Series A Dwiwarna share and Series B share Authorized - 1 Series A Dwiwarna share and 399,999,999,999 Series B shares Issued and fully paid - 1 Series A Dwiwarna share and 100,799,996,399 Series B shares |
1c,22 |
|
5,040 |
|
5,040 |
|
5,040 |
|
Additional paid-in capital |
2d,2v,23 |
|
2,899 |
|
2,899 |
|
2,323 |
|
Treasury stock |
2v,24 |
|
(3,836 |
) |
(3,836 |
) |
(5,805 |
) |
Effect of change in equity of associated companies |
2f |
|
386 |
|
386 |
|
386 |
|
Unrealized holding gain on available-for-sale securities |
2u |
|
35 |
|
39 |
|
38 |
|
Translation adjustment |
2f |
|
632 |
|
415 |
|
391 |
|
Difference due to acquisition of non-controlling interests in subsidiaries |
1d,2d |
|
(508 |
) |
(508 |
) |
(508 |
) |
Other reserves |
1d |
|
49 |
|
49 |
|
49 |
|
Retained earnings |
|
|
|
|
|
|
|
|
Appropriated |
32 |
|
15,337 |
|
15,337 |
|
15,337 |
|
Unappropriated |
|
|
50,757 |
|
47,995 |
|
42,633 |
|
Net Equity Attributable to Owners of the Parent Company |
|
|
70,791 |
|
67,816 |
|
59,884 |
|
Non-controlling Interests |
2b,21 |
|
16,294 |
|
18,323 |
|
16,932 |
|
TOTAL EQUITY |
|
|
87,085 |
|
86,139 |
|
76,816 |
|
TOTAL LIABILITIES AND EQUITY |
|
|
158,394 |
|
141,822 |
|
128,555 |
|
The accompanying notes to the consolidated financial statements form an integral part ofthese consolidated financial statements taken as a whole.
3 |
These consolidated financial statements are originally issued in Indonesian language
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Nine Months Period Ended September 30, 2015 and 2014 (unaudited)
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
|
Notes |
|
2015 |
|
2014 |
|
REVENUES |
2c,2r,25,36 |
|
75,719 |
|
65,841 |
|
Operations, maintenance and telecommunication service expenses |
2c,2h,2r,7,27,36 |
|
(21,295 |
) |
(16,764 |
) |
Depreciation and amortization |
2k,2l,2m,2r,10,11,12 |
|
(13,504 |
) |
(12,036 |
) |
Personnel expenses |
2c,2r,2s,14,26,33,34,35,36 |
|
(9,207 |
) |
(7,398 |
) |
Interconnection expenses |
2c,2r,29,36 |
|
(2,700 |
) |
(3,680 |
) |
General and administrative expenses |
2c,2g,2r,2t,6,28,36 |
|
(3,273 |
) |
(2,390 |
) |
Marketing expenses |
2r |
|
(2,170 |
) |
(2,314 |
) |
Gain (loss) on foreign exchange – net |
2q |
|
77 |
|
(203 |
) |
Other income |
2r,10c |
|
688 |
|
1,292 |
|
Other expenses |
2r,10c |
|
(343 |
) |
(399 |
) |
OPERATING PROFIT |
|
|
23,992 |
|
21,949 |
|
Finance income |
2c,36 |
|
980 |
|
928 |
|
Finance costs |
2c,2r,36 |
|
(1,658 |
) |
(1,333 |
) |
Share of profit (loss) of associated companies |
2f,9 |
|
6 |
|
(12 |
) |
PROFIT BEFORE INCOME TAX |
|
|
23,320 |
|
21,532 |
|
INCOME TAX (EXPENSE) BENEFIT |
2t,30 |
|
|
|
|
|
Current |
|
|
(6,157 |
) |
(5,505 |
) |
Deferred |
|
|
174 |
|
74 |
|
|
|
|
(5,983 |
) |
(5,431 |
) |
PROFIT FOR THE PERIOD |
|
|
17,337 |
|
16,101 |
|
OTHER COMPREHENSIVE INCOME (LOSS) |
|
|
|
|
|
|
Other comprehensive income to be reclassified to profit or loss in subsequent period: |
|
|
|
|
|
|
Foreign currency translation |
1d,2b,2f |
|
217 |
|
(13 |
) |
Change in fair value of available-for-sale financial assets |
2u |
|
(4 |
) |
1 |
|
Other Comprehensive Income – net |
|
|
213 |
|
(12 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
|
|
17,550 |
|
16,089 |
|
Profit for the period attributable to: |
|
|
|
|
|
|
Owners of the parent company |
|
|
11,545 |
|
11,268 |
|
Non-controlling interests |
2b,21 |
|
5,792 |
|
4,833 |
|
|
|
|
17,337 |
|
16,101 |
|
Total comprehensive income for the period attributable to: |
|
|
|
|
|
|
Owners of the parent company |
|
|
11,758 |
|
11,256 |
|
Non-controlling interests |
2b,21 |
|
5,792 |
|
4,833 |
|
|
|
|
17,550 |
|
16,089 |
|
BASIC AND DILUTED EARNINGS PER SHARE |
|
|
|
|
|
|
(in full amount) |
|
|
|
|
|
|
Net income per share |
2x,31 |
|
117.60 |
|
115.53 |
|
Net income per ADS (200 Series B shares per ADS) |
|
|
23,518.21 |
|
23,105.79 |
|
The accompanying notes to the consolidated financial statements form an integral part ofthese consolidated financial statements taken as a whole.
4 |
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the nine months period Ended September 30, 2015 and 2014 (Unaudited)
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
|
|
|
|
Attributable to owners of the parent company |
|
|
|
|
|
||||||||||||||||||||
Descriptions |
|
Notes |
|
Capital stock |
|
Additional paid-in capital |
|
Treasury stock |
|
Effect of change in equity of associated companies |
|
Unrealized holding gain on available - for-sale securities |
|
Translation adjustment |
|
Difference due to acquisition of non-controlling interests in subsidiaries |
|
Other reserves |
|
Retained earnings |
|
Net |
|
Non-controlling interests |
|
Total equity |
|
||
Appropriated |
|
Unappropriated |
|||||||||||||||||||||||||||
Balance, December 31, 2014 |
|
|
|
5,040 |
|
2,899 |
|
(3,836 |
) |
386 |
|
39 |
|
415 |
|
(508 |
) |
49 |
|
15,337 |
|
47,986 |
|
67,807 |
|
18,318 |
|
86,125 |
|
Adjustment in relation to implementation of Statement of Financial Accounting Standards (PSAK) No. 24 Employee benefits (Revised 2013) |
|
2ab |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
9 |
|
9 |
|
5 |
|
14 |
|
Balance, January 1, 2015, restated |
|
|
|
5,040 |
|
2,899 |
|
(3,836 |
) |
386 |
|
39 |
|
415 |
|
(508 |
) |
49 |
|
15,337 |
|
47,995 |
|
67,816 |
|
18,323 |
|
86,139 |
|
Paid in capital for associated companies |
|
|
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(9 |
) |
(9 |
) |
Cash dividends |
|
2w,32 |
|
- |
|
- |
|
|
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(8,783 |
) |
(8,783 |
) |
(7,830 |
) |
(16,613 |
) |
Comprehensive income for the period |
|
1d,2b,2f,2q,2u,21 |
|
- |
|
- |
|
|
|
- |
|
(4 |
) |
217 |
|
- |
|
- |
|
- |
|
11,545 |
|
11,758 |
|
5,792 |
|
17,550 |
|
Balance, June 30, 2015 |
|
|
|
5,040 |
|
2,899 |
|
(3,836 |
) |
386 |
|
35 |
|
632 |
|
(508 |
) |
49 |
|
15,337 |
|
50,757 |
|
70,791 |
|
16,294 |
|
87,085 |
|
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole.
5
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Nine Months Period Ended September 30, 2015 and 2014 (Unaudited)
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
|
|
|
|
Attributable to owners of the parent company |
|
|
|
|
|
||||||||||||||||||||
Descriptions |
|
Notes |
|
Capital stock |
|
Additional paid-in capital |
|
Treasury stock |
|
Effect of change in equity of associated companies |
|
Unrealized holding gain on available-for-sale securities |
|
Translation adjustment |
|
Difference due to acquisition of non-controlling interest in subsidiaries |
|
Other reserves |
|
Retained earnings |
|
Net |
|
Non-controlling interests |
|
Total equity |
|
||
Appropriated |
|
Unappropriated |
|||||||||||||||||||||||||||
Balance, December 31, 2013 |
|
|
|
5,040 |
|
2,323 |
|
(5,805 |
) |
386 |
|
38 |
|
391 |
|
(508 |
) |
49 |
|
15,337 |
|
43,291 |
|
60,542 |
|
16,882 |
|
77,424 |
|
Adjustment in relation to implementation of Statement of Financial Accounting Standards (PSAK) No. 24 Employee benefits (Revised 2013) |
|
2ab |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(658 |
) |
(658 |
) |
50 |
|
(608 |
) |
Balance, January 1, 2014, restated |
|
|
|
5,040 |
|
2,323 |
|
(5,805 |
) |
386 |
|
38 |
|
391 |
|
(508 |
) |
49 |
|
15,337 |
|
42,633 |
|
59,884 |
|
16,932 |
|
76,816 |
|
Paid in capital for associated companies |
|
|
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
35 |
|
35 |
|
Cash dividends |
|
2w,32 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(9.943 |
) |
(9,943 |
) |
(5,485 |
) |
(15,428 |
) |
Sales of treasury stock |
|
24 |
|
- |
|
576 |
|
1,969 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
2,545 |
|
- |
|
2,545 |
|
Comprehensive income (loss) for the period |
|
1d,2b,2f,2q,2u,21 |
|
- |
|
- |
|
- |
|
- |
|
1 |
|
(13 |
) |
- |
|
- |
|
- |
|
11,268 |
|
11,256 |
|
4,833 |
|
16,089 |
|
Balance, June 30, 2014 |
|
|
|
5,040 |
|
2,899 |
|
(3,836 |
) |
386 |
|
39 |
|
378 |
|
(508 |
) |
49 |
|
15,337 |
|
43,958 |
|
63,742 |
|
16,335 |
|
80,077 |
|
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole.
6
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOW
For the Nine Months Period Ended September 30, 2015 and 2014 (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
|
Notes |
|
2015 |
|
2014 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
Cash receipts from: |
|
|
|
|
|
|
Customers |
|
|
68,888 |
|
60,479 |
|
Other operators |
|
|
2,379 |
|
3,690 |
|
Total cash receipts from revenues |
|
|
71,267 |
|
64,169 |
|
Interest income received |
|
|
969 |
|
924 |
|
Payment for value added tax – net |
|
|
88 |
|
492 |
|
Cash payments for expenses |
|
|
(24,181 |
) |
(24,342 |
) |
Cash payments to employees |
|
|
(8,760 |
) |
(7,381 |
) |
Payments for corporate and final income taxes |
|
|
(6,080 |
) |
(5,939 |
) |
Payments for interest costs |
|
|
(1,804 |
) |
(1,293 |
) |
Other cash receipts – net |
|
|
(189 |
) |
734 |
|
Net cash provided by operating activities |
|
|
31,310 |
|
27,364 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
Proceeds from sale of property and equipment |
10 |
|
313 |
|
154 |
|
Proceeds from insurance claims |
10 |
|
88 |
|
62 |
|
Decrease in advances and other assets |
11 |
|
31 |
|
126 |
|
Cash dividends receipts from associate entity |
9 |
|
17 |
|
- |
|
Proceeds from time deposits |
5 |
|
- |
|
6,200 |
|
Business acquisition net of cash received |
3 |
|
- |
|
100 |
|
Acquisition of property and equipment |
10 |
|
(18,136 |
) |
(17,446 |
) |
Acquisition of intangible assets |
12 |
|
(1,003 |
) |
(608 |
) |
Increase in advances for purchases of property and equipment |
11 |
|
(319 |
) |
(1,774 |
) |
Placements in time deposit and assets available for sale |
5 |
|
(199 |
) |
(909 |
) |
Increase of long-term investments |
9 |
|
(10 |
) |
(1,431 |
) |
Net cash used in investing activities |
|
|
(19,218 |
) |
(15,726 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
Proceeds from bank loans |
20 |
|
8,966 |
|
5,982 |
|
Proceeds from bonds |
19 |
|
6,985 |
|
- |
|
Proceeds from short-term bank loans |
16 |
|
2,099 |
|
3,080 |
|
Proceeds from medium term notes |
19 |
|
320 |
|
- |
|
Capital contribution of non-controlling interests in associated companies |
|
|
9 |
|
55 |
|
Proceeds from sales of treasury stock |
24 |
|
- |
|
2,546 |
|
Proceeds from promissory notes |
19 |
|
- |
|
21 |
|
Cash dividends paid to the Company’s stockholder |
32 |
|
(8,783 |
) |
(9,943 |
) |
Cash dividends paid to non-controlling interests of subsidiaries |
|
|
(6,288 |
) |
(5,485 |
) |
Repayments of short-term bank loans |
16 |
|
(3,571 |
) |
(909 |
) |
Repayments of two-step and bank loans |
18,20 |
|
(2,742 |
) |
(3,119 |
) |
Repayments of bonds |
19 |
|
(1,005 |
) |
- |
|
Payments of obligations under finance leases |
10 |
|
(457 |
) |
(514 |
) |
Repayments of promissory notes |
19 |
|
(60 |
) |
(213 |
) |
Net cash used in financing activities |
|
|
(4,527 |
) |
(8,499 |
) |
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
7,565 |
|
3,139 |
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
|
1,027 |
|
(1 |
) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |
4 |
|
17,672 |
|
14,696 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
4 |
|
26,264 |
|
17,834 |
|
The accompanying notes to the consolidated financial statements, form an integral part ofthese consolidated financial statements taken as a whole.
7 |
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL
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. Decree No. 7 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. Its deed of establishment was approved by the Ministry of Justice of the Republic of Indonesia in its 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 has been amended several times, the latest amendment of which was about, among others, in compliance with the Financial Services Authority Regulations and the Ministry of State-Owned Enterprises Regulations and Circulation Letters, addition of main and supplementary business activities of the Company, addition of special right of Series A Dwiwarna stockholders, revision regarding the change in authority limitation of the Board of Directors which requires approval from the Board of Commissioners in performing such managing activities of the Company as well as improvement in the editorial and systematic of Articles of Association related to the addition of Articles of Association substance based on notarial deed No. 20 dated May 12, 2015 of Ashoya Ratam, S.H., MKn. The latest amendment was accepted and approved by the Ministry of Law and Human Rights of the Republic of Indonesia (“MoLHR”) in its Letter No. AHU-AH.01.03-0938775 dated June 9, 2015 and MoLHR decision’s No. AHU-0936901.AH.01.02.Th.2015 dated June 9, 2015.
In accordance with Article 3 of the Company’s Articles of Association, the scope of its activities are to provide telecommunication network and services and informatics, and to optimize 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/selling/leasing, and maintaining telecommunications and information networks in a broad sense in accordance with prevailing regulations.
ii. Planning, developing, providing, marketing/selling, and improving telecommunications and information services in a broad sense in accordance with prevailing regulations.
iii. Making investments including capital participation in other companies in line with achieving the purposes and objectives of the Company.
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 the 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.
iii. Collaborating with other parties in order to optimize the information, communication or technology resources, owned by other parties as information, communication and technology industry players in line with achieving the purposes and objectives of the Company.
The Company’s head office is located at Jalan Japati No. 1, Bandung, West Java.
8
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
The Company was granted several networks and/or services licenses by the Government which are valid for an unlimited period of time as long as the Company complies with prevailing laws and fulfills the obligation stated in those licenses. 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 networks and/or 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 customers, license payment and universal service contribution, while for internet telephone services for public purpose, Internet Interconnection Service, and Internet Access Service, there are additional informations 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 operate fixed 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 |
|
Internet telephone services for public purposes |
|
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 |
|
License to operate network access point |
|
331/KEP/M.KOMINFO/09/2013 |
|
Internet connection services |
|
September 24, 2013 |
|
9
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed 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 Annual General Meeting (“AGM”) of Stockholders of the Company as covered by notarial deed No. 26 of of Ashoya Ratam, S.H., MKn., dated on April 17, 2015, and the Extraordinary General Meeting (“EGM”) as covered by notarial deed No. 35 of Ashoya Ratam, S.H., MKn., dated on December 19, 2014, the composition of the Company’s Boards of Commissioners and Directors as of September 30, 2015 and December 31, 2014, respectively, were as follows:
|
|
September 30, 2015 |
|
December 31, 2014 |
|
President Commissioner |
|
Hendri Saparini |
|
Hendri Saparini |
|
Commissioner |
|
Dolfie Othiel Fredric Palit |
|
Dolfie Othiel Fredric Palit |
|
Commissioner |
|
Hadiyanto |
|
Hadiyanto |
|
Commissioner |
|
Margiyono Darsasumarja |
|
Imam Apriyanto Putro |
|
Independent Commissioner |
|
Rinaldi Firmansyah |
|
Virano Gazi Nasution |
|
Independent Commissioner |
|
Parikesit Suprapto |
|
Parikesit Suprapto |
|
Independent Commissioner |
|
Pamiyati Pamela Johana Waluyo |
|
Johnny Swandi Sjam |
|
President Director |
|
Alex Janangkih Sinaga |
|
Alex Janangkih Sinaga |
|
Director of Finance |
|
Heri Sunaryadi |
|
Heri Sunaryadi |
|
Director of Innovation and Strategic Portfolio |
|
Indra Utoyo |
|
Indra Utoyo |
|
Director of Enterprise and Business Service |
|
Muhammad Awaluddin |
|
Muhammad Awaluddin |
|
Director of Wholesale and International Services |
|
Honesti Basyir |
|
Honesti Basyir |
|
Director of Human Capital Management |
|
Herdy Rosadi Harman |
|
Herdy Rosadi Harman |
|
Director of Network, Information Technology and Solution |
|
Abdus Somad Arief |
|
Abdus Somad Arief |
|
Director of Consumer Services |
|
Dian Rachmawan |
|
Dian Rachmawan |
|
2. Audit Committee and Corporate Secretary
The composition of the Company’s Audit Committee and the Corporate Secretary as of September 30, 2015 and December 31, 2014, were as follows:
|
|
September 30, 2015* |
|
December 31, 2014 |
|
Chair |
|
Rinaldi Firmansyah |
|
Johnny Swandi Sjam |
|
Secretary |
|
Tjatur Purwadi |
|
Tjatur Purwadi |
|
Member |
|
Parikesit Suprapto |
|
Parikesit Suprapto |
|
Member |
|
Dolfie Othniel Fredric Palit |
|
Virano Gazi Nasution |
|
Member |
|
Agus Yulianto |
|
Agus Yulianto |
|
Corporate Secretary |
|
Andi Setiawan |
|
Honesti Basyir |
|
* The change of Audit Committee is based on Commissioner Regulation No. 06/KEP/DK/2015 dated May 7, 2015
10
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed 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
3. Employees
As of September 30, 2015 and December 31, 2014, the Group had 24,583 employees and 25,284 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. 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 the public through an IPO and listed on the Indonesia Stock Exchange (“IDX”) 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 were 35,000,000 ADS and each ADS represented 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, 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 AGM of Stockholders of the Company on April 16, 1999, the Company’s stockholders resolved to increase the Company’s issued share capital by the distribution of 746,666,640 bonus shares through the capitalization of certain additional paid-in capital, which were made 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 on 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 further sold a block of 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 share. The Series A Dwiwarna share with par value of Rp500 per share 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 the 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.
.
11
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
c. Public offering of securities of the Company (continued)
During the EGM held on December 21, 2005 and the Annual General Meeting (“AGM”) held on June 29, 2007, June 20, 2008, and May 19, 2011, the Company’s stockholders approved phase I, II, III and IV plan, respectively, of the Company’s program to repurchase its issued Series B shares (Note 24).
During the period December 21, 2005 to June 20, 2007, the Company had bought back 211,290,500 shares from the public (stock repurchase program phase I). On July 30, 2013, the Company has sold all such shares (Note 24).
At the AGM held on April 19, 2013 as covered by notarial deed No. 38 dated April 19, 2013 of Ashoya Ratam, S.H., MKn., the stockholders approved the changes to the Company’s plan on the treasury stock acquired under phase III (Note 24).
At the AGM held on April 19, 2013, the minutes of which are covered by notarial deed No.38 of Ashoya Ratam, S.H., MKn., the stockholders approved the Company’s 5-for-1stock split for Series A Dwiwarna and Series B shares. Series A Dwiwarna share with par value of Rp250 per share was split into 1 Series A Dwiwarna share with par value of Rp50 per share and 4 Series B shares with par value Rp50 per share. The stock split resulted in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna and 79,999,999,999 Series B shares to 1 Series A Dwiwarna and 399,999,999,999 Series B shares, and the issued capital stock from 1 Series A Dwiwarna and 20,159,999,279 Series B shares to 1 Series A Dwiwarna and 100,799,996,399 Series B shares. After the stock split, each ADS represented 200 Series B shares.
On May 16 and June 5, 2014, the Company deregistered from Tokyo Stock Exchange (“TSE”) and delisted from the LSE,respectively.
As of September 30, 2015, all of the Company’s Series B shares are listed on the IDX and 45,289,150 ADS shares are listed on the NYSE (Note 22).
As of June 25, 2015 the Company issued the second rupiah bonds with a nominal amount of Rp1,005 billion for Series A, a five-year period and Rp1,995 billion for Series B, a ten-year period, respectively, are listed on the IDX (Note 19a).
As of June 16, 2015, the Company issued Continuous Bond I Telkom Phase I 2015, with a nominal amount Rp2,200 billion for Series A, a seven-year period, Rp2,100 billion for Series B, a ten-year period, Rp1,200 billion for Series C a fifteen-year period and Rp1,500 billion for Series D a thirty-year period, repectively, are listed on the IDX (Note 19a).
d. Subsidiaries
As of September 30, 2015 and December 31, 2014, the Company has consolidated the following directly or indirectly owned subsidiaries (Notes 2b and 2d):
(i) Direct subsidiaries:
|
|
|
|
|
|
Percentage of ownership interest |
|
Total assets before elimination |
|
||||
Subsidiary/place of incorporation |
|
Nature of business/date of incorporation or acquisition by the Company |
|
Date of start of commercial operations |
|
September 30, 2015 |
|
December 31, 2014 |
|
September 30, 2015 |
|
December 31, 2014 |
|
PT Telekomunikasi Selular (“Telkomsel”) Jakarta, Indonesia |
|
Telecommunication – provides Telecommunication facilities and mobile cellular services using Global Systems for Mobile Communication (“GSM”) technology/May 26, 1995 |
|
1995 |
|
65 |
|
65 |
|
82,756 |
|
78,654 |
|
12
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(i) Direct subsidiaries:
|
|
Nature of business/ date of incorporation |
|
Date of start of |
|
Percentage of ownership interest |
|
Total assets before elimination |
|
||||
Subsidiary/place of incorporation |
|
or acquisition by the Company |
|
commercial operations |
|
September 30, 2015 |
|
December 31, 2014 |
|
September 30, 2015 |
|
December 31, 2014 |
|
PT Dayamitra Telekomunikasi (“Dayamitra”), Jakarta, Indonesia |
|
Telecommunication/May 17, 2001 |
|
1995 |
|
100 |
|
100 |
|
8,740 |
|
8,836 |
|
PT Multimedia Nusantara(“Metra”), Jakarta, Indonesia |
|
Multimedia and network telecommunication services/May 9, 2003 |
|
1998 |
|
100 |
|
100 |
|
7,528 |
|
6,256 |
|
PT Telekomunikasi Indonesia International (“TII”),Jakarta, Indonesia |
|
Telecommunication/July 31, 2003 |
|
1995 |
|
100 |
|
100 |
|
5,529 |
|
4,549 |
|
PT Telkom Akses (“Telkom Akses”), Jakarta, Indonesia |
|
Construction, service and trade in the field of telecommunication/November 26, 2012 |
|
2013 |
|
100 |
|
100 |
|
3,594 |
|
2,089 |
|
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 |
|
3,487 |
|
2,310 |
|
PT PINS Indonesia (“PINS”) previously PT Pramindo Ikat Nusantara Jakarta, Indonesia |
|
Telecommunication construction and services/August 15, 2002 |
|
1995 |
|
100 |
|
100 |
|
3,208 |
|
3,129 |
|
PT Infrastruktur Telekomunikasi Indonesia (“Telkom Infratel”) Jakarta, Indonesia |
|
Construction, service and trade in the field of telecommunication/January 16, 2014 |
|
2014 |
|
100 |
|
100 |
|
708 |
|
331 |
|
PT Patra Telekomunikasi Indonesia (“Patrakom”) Jakarta, Indonesia |
|
Telecomunication- provides satellite communication system, services and facilities/September 28, 1995 |
|
1996 |
|
100 |
|
100 |
|
502 |
|
345 |
|
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 operations on January 13, 2006 |
|
60 |
|
60 |
|
5 |
|
5 |
|
13
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(ii) Indirect subsidiaries:
|
|
Nature of business/date of incorporation |
|
Date of start of |
|
Percentage of ownership interest |
|
Total assets before elimination |
|
||||
Subsidiary/place of incorporation |
|
or acquisition by the Company |
|
commercial operations |
|
September 30, 2015 |
|
December 31,2014 |
|
September 30, 2015 |
|
December 31, 2014 |
|
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 |
|
2,860 |
|
2,515 |
|
Telekomunikasi Indonesia International Pte. Ltd., Singapore |
|
Telecommunication/December 6, 2007 |
|
2008 |
|
100 |
|
100 |
|
1,654 |
|
1,058 |
|
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 |
|
1,573 |
|
1,354 |
|
PT Telkom Landmark Tower (“TLT”), Jakarta, Indonesia |
|
Service for property development and management/February 1, 2012 |
|
2012 |
|
55 |
|
55 |
|
1,099 |
|
828 |
|
Telekomunikasi Indonesia International (“TL”) S.A., Timor Leste |
|
Telecommunication/September 11, 2012 |
|
2012 |
|
100 |
|
100 |
|
930 |
|
832 |
|
PT Metra Digital Media (“MD Media”), Jakarta, Indonesia |
|
Directory information services/ January 22, 2013 |
|
2013 |
|
99.99 |
|
99.99 |
|
702 |
|
723 |
|
PT Finnet Indonesia (“Finnet”), Jakarta, Indonesia |
|
Information Technology services/October 31, 2005 |
|
2006 |
|
60 |
|
60 |
|
462 |
|
208 |
|
Telekomunikasi Indonesia International Ltd., Hong Kong |
|
Telecommunication/December 8, 2010 |
|
2010 |
|
100 |
|
100 |
|
321 |
|
242 |
|
Telekomunikasi Indonesia Internasional Pty Ltd. (“Telkom, Australia”) Australia |
|
Telecomunication/January 9, 2013 |
|
2013 |
|
100 |
|
100 |
|
251 |
|
190 |
|
PT Administrasi Medika (“Ad Medika”), Jakarta, Indonesia |
|
Health insurance administration services/February 25, 2010 |
|
2002 |
|
75 |
|
75 |
|
169 |
|
136 |
|
PT Nusantara Sukses Investasi (”NSI”) Jakarta, Indonesia |
|
Trade and service / September 1, 2014 |
|
2014 |
|
99.99 |
|
99.99 |
|
168 |
|
115 |
|
14
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(ii) Indirect subsidiaries:(continued)
|
|
Nature of business/date of incorporation |
|
Date of start of |
|
Percentage of ownership interest |
|
Total assets before elimination |
|
||||
Subsidiary/place of incorporation |
|
or acquisition by the Company |
|
commercial operations |
|
September 30, 2015 |
|
December 31, 2014 |
|
September 30, 2015 |
|
December 31, 2014 |
|
PT Graha Yasa Selaras (“GYS”) Jakarta, Indonesia |
|
Tourism service/April 27, 2012 |
|
2012 |
|
51 |
|
51 |
|
142 |
|
88 |
|
PT Metra Plasa (“Metra Plasa”), Jakarta, Indonesia |
|
Network & e-commerce services/April 9, 2012 |
|
2012 |
|
60 |
|
60 |
|
76 |
|
88 |
|
Telekomunikasi Indonesia International (“Telkom USA”) Inc. USA |
|
Telecommunication/December 11, 2013 |
|
2014 |
|
100 |
|
100 |
|
68 |
|
1 |
|
PT Metra-Net (“Metranet”), Jakarta, Indonesia |
|
Multimedia portal service/April 17, 2009 |
|
2009 |
|
99.99 |
|
99.99 |
|
49 |
|
42 |
|
PT Pojok Celebes Mandiri (“PCM”) Jakarta, Indonesia |
|
Tour agent/bureau services/August 16, 2013 |
|
2008 |
|
51 |
|
51 |
|
18 |
|
13 |
|
PT Satelit Multimedia Indonesia (“SMI”) Jakarta, Indonesia |
|
Satellite services/March 25, 2013 |
|
2013 |
|
99.99 |
|
99.99 |
|
10 |
|
7 |
|
PT Metra Digital Investama (“MDI”) previously PT Metra Media Jakarta, Indonesia |
|
Trade service, information& technology multimedia, entertainment & investment/ January 8, 2013 |
|
2013 |
|
99.99 |
|
99.99 |
|
1 |
|
0 |
|
PT Metra TV (“Metra TV”) Jakarta, Indonesia |
|
Pay TV services/January 8, 2013 |
|
2013 |
|
99.83 |
|
99.83 |
|
- |
|
- |
|
PT Nusantara Sukses Sarana (”NSS”) Jakarta, Indonesia |
|
Hotel and building management services etc/September 1, 2014, |
|
- |
|
99.99 |
|
99.99 |
|
- |
|
- |
|
PT Nusantara Sukses Realti (”NSR”) Jakarta, Indonesia |
|
Trade and sevice/September 1, 2014 |
|
- |
|
99.99 |
|
99.99 |
|
- |
|
- |
|
15
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(a) Metra
On June 5, 2014, based on the Circular Resolution of the Stockholders as covered by notarial deed No. 18 of N.M. Dipo Nusantara Pua Upa, S.H., M.Kn., which was approved by the MoLHR through its Letter No. AHU-03769.40.20.2014 dated June 10, 2014, PT Metra Media’s stockholders approved the change of name from PT Metra Media to PT Metra Digital Investama (“MDI”).
On December 12, 2014, based on the Circular Resolution of the Stockholders of Metra as covered by notarial deed No. 24 dated December 12, 2014 of N.M. Dipo Nusantara Pua Upa, S.H., M.Kn., which has been approved by the MoLHR through its Letter No. AHU-09792.40.21.2014 dated December 17, 2014, Metra’s stockholders approved an increase in its authorized capital to 350,000,000 shares, amounting to Rp3.5 trillion which was taken proportionately by each of the shareholders and approved an increase in its issued and paid capital to 273,307,349 shares amounting to Rp2.7 trillion.
(b) Sigma
Sigma has amended its Articles of Association several times, the latest amandment of which was notarized by deed No. 02 dated December 4, 2014 of Utiek Rochmuljati Abdurachman, SH., MLI., Mkn., regarding the changes in the authorized capital, stock and the issued and fully paid capital stock. The latest amandment of the Articles of Association was approved by MoLHR through its Letter No. AHU-12707.40.20.2014 dated December 11, 2014.
(c) Dayamitra
Regarding the Conditional Shares Exchange Agreement (“CSEA”) with PT Tower Bersama Infrastructure Tbk. (“TBI”), the transaction was terminated by the Company due to nonfulfillment of the terms stated in the CSEA.
16
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(d) Telkom Infratel
On January 16, 2014 the Company established a wholly owned subsidiary under the name PT Telkom Infrastruktur Telekomunikasi Indonesia which was approved by the MoLHR through its Decision Letter No. AHU-03196.AH.01.01.2014 dated January 23, 2014 with 100% ownership. Telkom Infratel is engaged in providing construction, service and trade in the field of telecommunication.
(e) GSD
On August 27, 2014, based on notarial deed No. 21 dated August 27, 2014 of Zulkifli Harahap, S.H., which was approved by the MoLHR in its Letter No. AHU-22722.40.10.2014 dated September 1, 2014, GSD established a subsidiary, PT Nusantara Sukses Sarana (“NSS”) with 99.99% ownership. NSS is engaged in building and hotel services management and other services. As of the date of approval and authorization for the issuance of the consolidated financial statements, NSS has not commenced operational activities.
On August 27, 2014, based on notarial deed No. 22 dated August 27, 2014 of Zulkifli Harahap, S.H., which was approved by the MoLHR in its Letter No. AHU-22723.40.10.2014 dated September 1, 2014, GSD established a subsidiary, PT Nusantara Sukses Realti (“NSR”) with 99.99% ownership. NSR is engaged in service and trading. As of the date of approval and authorization for the issuance of the consolidated financial statements, NSR has not commenced operational activities.
On August 27, 2014, based on notarial deed No. 23 dated August 27, 2014 of Zulkifli Harahap, S.H., which was approved by the MoLHR in its Letter No. AHU-22724.40.10.2014 dated September 1, 2014, GSD established a subsidiary, PT Nusantara Sukses Investasi (“NSI”) with 99.99% ownership. NSI is engaged in service and trading.
e. Authorization for the issuance of the consolidated financial statements
The consolidated financial statements were prepared and approved for issuance by the Board of Directors on October 27, 2015.
17
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of the Company and subsidiaries (collectively referred to as “the Group”) has been prepared in accordance with Financial Accounting Standards (“Standar Akuntansi Keuangan” or “SAK”) including Indonesian Financial Accounting Standards (“Pernyataan Standar Akuntansi Keuangan” or “PSAK”) and Interpretation of Financial Accounting Standards (“Interpretasi Standar Akuntansi Keuangan” or “ISAK”) in Indonesia published by Financial Accounting Standard Board of Indonesian Institute of Accountants and Regulation No. VIII.G.7 of the Capital Market and Financial Institution Supervisory Agency (“Bapepam-LK”) regarding the Presentation 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.
The consolidated financial statements provide comparative information in respect of the previous period. In addition, the Group presents an additional statement of financial position at the beginning of the earliest period presented when there is retrospective application of an accounting policy, a retrospective statement, or a reclassification of items in the financial statements. An additional statement of financial position as of Januari 1, 2014, is presented in these consolidated financial statements due to the retrospective application of PSAK 24, Employee Benefits (Revised 2013) and PSAK 50, Financial Instruments: Presentation (Revised 2014) (Note 2ab).
Changes to PSAKs and ISAKs
On January 1, 2015, the Group adopted new and revised PSAKs, which were effective in 2015. Changes to the Group’s accounting policies have been made as required in accordance with the transitional provisions in the respective standards and interpretations.
· PSAK 1 (2013), “Presentation of Financial Statements”
The revised standard requires the entity to change the title of the “Statement of Comprehensive Income” to the “Statement of Profit or Loss and Other Comprehensive Income”. Furthermore, the entity is required to present the other comprehensive income based on the following categories:
i. Items that will never be reclassified to profit or loss
ii. Items that can be reclassified subsequently to profit or loss when certain conditions are met.
18
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
a. Basis of preparation of financial statements (continued)
Effective beginning on or after January 1, 2015 (continued)
· PSAK 24 (2013), “Employee Benefits”.
The revised standard, changes, among other things, the accounting for defined benefit plans. Some of the key changes that impacted the Group include the following:
· Recognition of actuarial gain (losses) directly to other comprehensive income.
· All past service costs are recognized at the earlier of when the amendment/curtailment occurs or when the related restructuring or termination costs are recognized. As a result, unvested past service costs can no longer be deffered and recognized over the future vesting period.
· The interest cost and expected return on plan assets used in the previous version of PSAK 24 are replaced with a net interest amount, which is calculated by applying the discount rate to the net defined benefit liability or asset at the start of each annual reporting period.
· PSAK 50 (2014), “Financial Instrument: Presentation”.
The revised standard clarifies additional criterias to have a legally enforceable right to offset the amount of financial assets and liabilities, as follows:
i. The right of set-off must not be contingent on a future event; and
ii. Must be legally enforceable in all of the following circumstances:
a. the normal course of business;
b. the event of default; and
c. the event of insolvency or bankruptcy of the Group and all of the counterparties.
· PSAK 67, “Disclosure of Interest in Other Entities”.
The revised standard requires, for each joint venture and the associates that is material to the reporting entity, the reporting entity shall disclose the financial summary of the joint venture and associate. The financial summary represents the amount presented in the financial statements of those joint venture or associate using the equity method:
i. For each of subsidiaries that have non-controlling interests that are material to the reporting entity, reporting entity discloses the name of the subsidiary, the principle place of business, the proportion of ownership interest held by non-controlling interests, the proportion of voting rights held by non-controlling interests, the profit or loss allocated to non-controlling interests, accumulated non-controlling interests, and summarised financial information about the subsidiary.
ii. The entity shall provide a reconciliation of the summarized financial information presented to the carrying amount of its interest in the joint venture or associate.
The application of standards, new/revised interpretations and revocation of the following standards have no significant implicatian to consolidated financial statements:
· PSAK 4 (2013),“Separate Financial Statements”
· PSAK 15 (2013),“ Investments in Associates and Joint Ventures”
· PSAK 46 (2014), “Income Tax”
· PSAK 48 (2014),” Asset Impairment”
· PSAK 55 (2014),” Financial Instrument: Measurement and Recognition”
· PSAK 60 (2014),” Financial Instrument: Disclosure”
· PSAK 65,“ Consolidated Financial Statements”
· PSAK 66,“ Joint Arrangements”
· PSAK 68,“ Fair Value Measurement”
· ISAK 26 (2014),” Revaluation of Embedded Derivatives”
19
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
a. Basis of preparation of financial statements (continued)
Circular Letter of The Financial Services Authority ("FSA")
On September 1, 2015, The FSA published the Financial Services Authority Circular Letter No. 27/SEOJK.04/2015 on "Accounting Treatment of Leased Telecommunication Tower Assets". FSA Circular Letter stated that the leased telecommunications tower assets of the issuers or public company and/or its subsidiaries shall be recognized as an Investment Property. This FSA Circular Letter effective for financial statements covering period ending on or after December 31, 2015. Upon this, The Group is currently assessing the impact of this FSA Circular Letter to the consolidated financial statements.
b. Principles of consolidation
The consolidated financial statements consist of the financial statements of the Company and the subsidiaries over which it has control. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has the power over the investee, exposure or rights, to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect its returns.
The Group re-assesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control over the subsidiary. Assets, liabilities, income and expenses, of a subsidiary acquired or disposed of during the year are included in the consolidated statements of comprehensive income from the date the Group gain control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
Intercompany balances and transactions have been eliminated in the consolidated financial statements.
In case of loss of control over a subsidiary, the Group:
· derecognizes the assets (including goodwill) and liabilities of the subsidiary at the carrying amounts on the date when it loses control;
· derecognizes the carrying amounts of any non-controlling interests of its former subsidiary on the date when it loses control;
· recognizes the fair value of the consideration received (if any) from the transaction, events, or condition that caused the loss of control;
· recognizes the fair value of any investment retained in the subsidiary at fair value on the date of loss of control;
· recognizes any surplus or deficit in profit or loss that is attributable to the Group.
20
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
c. Transactions with related parties
The Group has 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 the Regulation of Bapepam-LK 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. Formerly, the Group in its disclosure applied the definition of related party used based on PSAK 7 “Related Party”.
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 Group. 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 aggregate of the fair value of the assets transferred, liabilities incurred or assumed and the equity instruments issued in exchange for control of the acquiree. 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. 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 is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of net assets acquired is in excess of the aggregate consideration transferred, the Group re-assess whether it has correctly identified all of the assets acquired and all of the liabilities assumed, and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit and loss.
21
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
d. Business combinations (continued)
When the determination of consideration from a business combination includes contingent consideration, it is measured at its fair value on acquisition date. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss when 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.
In a business combination achieved in stages, the acquirer remeasures its previously held equity interest in the acquiree at its acquisition-date fair value and recognizes the resulting gain or loss, if any, in profit or loss.
Based on PSAK 38 (Revised 2012), “Common Control Business Combination”, the transfer of assets, liabilities, shares or other ownership instruments among the companies under common control would not result in a gain or loss. Since the restructuring transaction between entities under common control does not result in a change of the economic substance of the ownership of assets, liabilities, shares or other instruments of ownership, which are exchanged, assets or liabilities transferred are recorded at book value using the pooling-of-interests method. In applying the pooling-of-interests method, the components of the financial statements for the period during which the restructuring occurred must be presented in such a manner as if the restructuring has occurred since the beginning of the earliest period presented. The excess of consideration paid or received over the carrying value of interest acquired, net of income tax, is directly recognized to equity and presented as “Additional Paid-in Capital” under the equity section of the consolidated statement of financial position.
At the initial application of PSAK 38 (Revised 2012), all balances of the Difference In Value of restructuring Transactions of Entities under Common Control was reclassified to “Additional Paid-in Capital” in the consolidated statement of financial position.
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 part of “Other Current Financial Assets” in the consolidated statement of financial position.
22
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
f. Investments in associated companies
An associate is an entity over which the Group (as investor) has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but does not include control or joint control over those operating policies. The considerations made in determining significant influence are similar to those necessary to determine control over subsidiaries.
The Group’s investments in its associates are accounted for using the equity method.
Under the equity method, the investment in an associate is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the investor’s share of the net assets of the associate since the acquisition date. On acquisition of the investment, any difference between the cost of the investment and the entity's share of the net fair value of the investee's identifiable assets and liabilities is accounted for as follows:
a. Goodwill relating to an associate or a joint venture is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment.
b. Any excess of the entity's share of the net fair value of the investee's identifiable assets and liabilities over the cost of the investment is included as income in the determination of the entity's share of the associate or joint venture's profit or loss in the period in which the investment is acquired.
The consolidated statements of comprehensive income reflect the Group’s share of the results of operations of the associate. Any change in the other comprehensive income of the associate is presented as part of other comprehensive income. In addition, when there has been a change recognized directly in the equity of the associate, the Group recognizes it share of the change in the consolidated statements of changes in equity. Unrealized gain and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate.
The Group determines at each reporting date whether there is any objective evidence that the investments in associated companies are impaired. If there is, the Group calculates and recognizes the amount of impairment as the difference between the recoverable amount of the investments in the associated companies and their carrying value.
These assets are included in “Long-term Investments” in the consolidated statements of financial position.
The functional currency of PT Citra Sari Makmur (“CSM”) is the United States dollar (“U.S. dollars”), and Telin Malaysia is the 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 year. The resulting translation adjustments are reported as part of “translation adjustment” in the equity section of the consolidated statements of financial position.
23
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 collectibility of the outstanding amounts. Receivables are written off in the year they are determined to be uncollectible.
h. Inventories
Inventories consist of components, which are subsequently expensed upon use. Components represent telephone terminals, cables, and other spare parts. Inventories also include Subscriber Identification Module (“SIM”) cards, Removable User Identity Module (“RUIM”) cards, handsets, set top boxes, wireless broadband modems, and blank prepaid vouchers, 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 recognized 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.
The amounts of any write-down of inventories below cost to net realizable value and all losses of inventories are recognized as 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, is recognized as a reduction in the amount of general and administrative expenses in the year 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. Assets held for sale
Assets (or disposal groups) are classified as 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.
24
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
k. Intangible assets
Intangible assets mainly consist of software and license. Intangible assets are recognized if it is probable that the expected future economic benefits that are attributable to each asset will flow to the Group, and the cost of the asset can be reliably measured.
Intangible assets are stated at cost less accumulated amortization and impairment, if any. Intangible assets are amortized over their useful lives. The Group estimates the recoverable value of its 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 |
|
Software |
3-6 |
|
License |
3-20 |
|
Other intangible assets |
1-30 |
|
Intangible assets are derecognized when no further economic benefits are expected, either from further use or from disposal. The difference between the carrying amount and the net proceeds received from disposal is recognized in the consolidated statement of profit or loss and other comprehensive income.
l. Property and equipment
Property and equipment directly acquired are stated at cost less accumulated depreciation and impairment losses.
The cost of an item of property and equipment 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 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 landrights, are depreciated using the straight-line method based on the estimated useful lives of the assets as follows:
|
Years |
|
Buildings |
15-40 |
|
Leasehold improvements |
2-15 |
|
Switching equipment |
3-15 |
|
Telegraph, telex and data communication equipment |
5-15 |
|
Transmission installation and equipment |
3-25 |
|
Satellite, earth station and equipment |
3-20 |
|
Cable network |
5-25 |
|
Power supply |
3-20 |
|
Data processing equipment |
3-20 |
|
Other telecommunications peripherals |
5 |
|
Office equipment |
2-5 |
|
Vehicles |
4-8 |
|
Asset Customer Premise Equipment (“CPE”) |
10 |
|
Other equipment |
2-5 |
|
Significant expenditures related to leasehold improvements are capitalized and depreciated over the lease term.
25
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
l. Property and equipment (continued)
The 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 Group would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset is already of the age and in the condition expected at the end of its useful life.
Property and equipment acquired in exchange for a non-monetary asset or for a combination of monetary and non-monetary assets are measured at fair value unless (i) the exchange transaction lacks commercial substance; or (ii) the fair value of neither the asset received nor the asset given up is reliably measurable.
Major spare parts and standby 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 derecognized from the consolidated statement of financial position and the resulting gains or losses on the disposal or sale of the property and equipment are recognized in the consolidated statement of profit or loss and other 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 the 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 statement of profit or loss and other 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 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 a qualifying asset are, capitalized in proportion to the average amount of accumulated expenditures during the period. Capitalization of borrowing cost ceases when the construction is completed and the asset is ready for its intended use.
m. Leases
In determining whether an arrangement is, or contains a lease, the Group performs an evaluation over the substance of the arrangement. A lease is classified as a finance lease or operating lease based on the substance, not the forms of the contract. Finance lease is recognized if the lease transfers substantially all the risks and rewards incidental to the ownership of the leased asset.
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 Group are added to the amount recognized as assets.
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is 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 are charged as expenses in the year in which they are incurred.
26
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
m. Leases (continued)
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 Group 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
Costs incurred to process the initial legal land rights are recognized as part of the property and equipment 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 legal 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 from suppliers in the ordinary course of business. 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 this period is 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 rate 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 profit or loss and other comprehensive income over the period of the borrowings using the effective interest method.
Fees paid on obtaining loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facilities will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facilities will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facilities to which it relates.
27
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
q. Foreign currency translations
The functional currency and the recording currency of the Group are both 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 and Telekomunikasi Indonesia International, Pty.Ltd., Australia whose accounting records is maintained in Australian 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 liabilities 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:
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
Buy |
|
Sell |
|
Buy |
|
Sell |
|
U.S. dollar (“US$”) 1 |
14,645 |
|
14,655 |
|
12,380 |
|
12,390 |
|
Australian dollar (“AU$”) 1 |
10,301 |
|
10,311 |
|
10,143 |
|
10,155 |
|
Euro 1 |
16,439 |
|
16,453 |
|
15,044 |
|
15,059 |
|
Yen 1 |
121.80 |
|
121.89 |
|
103.53 |
|
103.64 |
|
The resulting foreign exchange gains or losses, realized and unrealized, are credited or charged to the consolidated statement of profit or loss and other comprehensive income of the current year, 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 including incremental costs, are deferred and recognized as revenue and costs on the straight-line basis 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 2015 and 2014 to be 18 years. Starting 2015, revenues from fixed line installation are not deffered, directly recognized to profit or loss when received, since its value is not significant. 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 service, which consist of the sale of starter packs (also known as SIM cards in the case of cellular or RUIM cards in the case of fixed wireless telephone and start-up load vouchers) and pulse reload vouchers (either bundled in starter packs or sold as separate items), are recognized initially as unearned income and recognized proportionately as 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.
28
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition (continued)
iii. Interconnection revenues
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’ subscriber calls to the Group’s subscribers (incoming) and calls between subscribers of other operators through the Group’s network (transit).
iv. Data, internet and information technology service revenues
Revenues from data communication and internet are recognized based on service activity and performance which are measured by the duration of internet usage or based on the fixed amount of 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. Network revenues
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 service 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 is recognized on a stage-of-completion basis. Revenues from operating and maintenance activities in respect of assets under the concession are recognized when the services are rendered.
In concession contracts under USO, the Group recognizes a financial asset to the extent that it has a contractual right to receive cash or other financial assets from the Government for the construction services, where the Government has little, if any, discretion to avoid payment. The Group recognizes an intangible asset to the extent that it receives a license to charge users of the public service.
Revenues from sales of other telecommunication services or goods are recognized upon completion of services and/or delivery of goods to customers.
29
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition (continued)
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 Group acts as principal in the sale of goods and services. Revenues are recorded based on the net amount retained (the amount paid by the customer less amount paid to the suppliers) when, in substance, the Group has acted as agents and earned commission from the suppliers of the goods and services sold.
ix. Customer loyalty programme
The Group operates a loyalty programme, which allows customers to accumulate points for every certain multiple of the monthly usage for postpaid service or reload vouchers for prepaid services. The points will be accumulated during a certain period and can 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. Fair value of the points issued is deferred and recognized as revenue when the points are redeemed or expired.
x. Expenses
Expenses are recognized as they are incurred.
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 Group.
ii. Post-employment benefit plans and other long-term employee benefits
Post-employment benefit plans consist of funded and unfunded defined benefit pension plans, defined contribution pension plan, other post-employment benefits, post-employment health care benefit plan, defined contribution health care benefit plan and obligations under the Labor Law.
Other long-term employee benefits consist of Long Service Awards (“LSA”), Long Service Leave (“LSL”), and pre-retirement benefits.
The cost of providing benefits under post-employment benefit plans and other long-term employee benefits calculation is performed by an independent actuary using the projected unit credit method.
30
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
s. Employee benefits (continued)
ii. Post-employment benefit plans and other long-term employee benefits (continued)
The net obligations in respect of the defined pension benefit plans and post-retirement health care benefit plan 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. 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 are no deep markets 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.
Remeasurement, comprising of actuarial gain and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability) are recognized immediately in the consolidated statements of financial position with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not classified to profit or loss in subsequent periods.
Past service costs are recognized immediately in profit or loss on the earlier of:
· The date of plan amendment or curtailment; and
· The date that the Group recognized restructuring-related costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or assets.
Gain or losses on curtailment are recognized when there is a commitment to make a material reduction in the number of employees covered by a plan or when there is an amendment of defined benefit plan terms such as 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.
Gain 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.
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 personnel expenses as they become payable.
iii. Share-based payments
The Company operates an equity-settled, share-based compensation plan. The fair value of the employees’ services rendered which are compensated with the Company’s shares is recognized as an expense in the consolidated statements of comprehensive income and credited to additional paid-in capital at the grant date.
31
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
s. Employee benefits (continued)
iv. Early retirement benefits
Early retirement benefits are accrued at the time the Company and subsidiaries 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.
t. Income tax
Current and deferred income taxes are recognized as income or an expense and included in the consolidated statement of profit or loss and other comprehensive income, except to the extent that the tax arises from a transaction or event which is recognized directly in equity, in which case, the tax is recognized directly in equity.
Current tax assets and liabilities are measured at the amounts 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, management establishes provisions based on the amounts expected to be paid to the tax authorities.
The Group recognizes deferred tax assets and liabilities for temporary differences between the financial and tax bases of assets and liabilities at each reporting date. The Group also recognizes 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.
The carrying amount of deferred tax asset is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.
Deferred tax assets and liabilities are offset in the consolidated statement 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 tax 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 an SKP are recognized in the current year profit or loss, unless objection/appeal is taken. The additional taxes and penalty imposed through the SKP are deferred as long as they meet the asset recognition criteria.
u. Financial instruments
The Group classifies 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 rate method in accordance with their classification.
i. Financial assets
The Group classifies its 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 are acquired. Management determines the classification of financial assets at initial recognition.
32
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
i. Financial assets (continued)
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Group commit to purchase or sell the assets.
The Group’s financial assets include cash and cash equivalents, other current financial assets, trade receivables and other receivables 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 profit or loss and other comprehensive income in the period in which they arise. Financial asset measured at fair value through profit loss consists of derivative asset-put option which is recognized as part of “Other Current Financial Assets” in the consolidated statement of financial position.
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, other current financial assets (time deposits and escrow account), trade receivables, other receivables, and other non-current assets (long-term trade receivables and restricted cash).
These are initially recognized at fair value including transaction costs and subsequently measured at amortized cost, using the effective interest method.
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 Group upon initial recognition designates as assets at fair value through profit or loss;
b) those that the Group 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 September 30, 2015 and December 31, 2014.
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 mutual funds, and corporate and government bonds, which are recorded as part of “Other Current Financial Asset” in the consolidated statements of financial position.
33
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
i. Financial assets (continued)
d. Available-for-sale financial assets (continued)
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 profit or loss and other comprehensive income, and are determined on the specific identification basis.
ii. Financial liabilities
The Group classifies their financial liabilities as (i) financial liabilities at fair value through profit or loss or (ii) financial liabilities measured at amortized cost.
The Group’s financial liabilities include trade payables, other payables, accrued expenses, loans and other borrowings, and other liabilities. Loans and other borrowings consist of short-term bank loans, two step loans, bonds and long-term notes, and bank loans and obligations under capital lease.
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 September 30, 2015 and 2014.
b. Financial liabilities measured at amortized cost
Financial liabilities that are not classified as liabilities at fair value through profit or loss fall into this category and are measured at amortized cost. Financial liabilities measured at amortized cost are trade payables, other payables, accrued expenses, loans and other borrowing, and other liabilities. Loans and other borrowings consist of short-term bank loans, two-step loans, bonds and notes, long-term bank loans and obligation under finance leases.
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 realize the assets and settle the liabilities simultaneously. The right of set-off must not be contingent on a future event and must be legally enforceable in all of the following circumstances:
a. the normal course of business;
b. the event of default; and
c. the event of insolvency or bankruptcy of the Group and all of the counterparties.
34
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
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, 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 42.
v. Impairment of financial assets
The Group assesses 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.
For financial assets carried at amortized cost, the Group first assesses whether impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in the collective assessment of impairment.
The amount of any impairment loss identified is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account and the loss is recognized in profit or loss.
For available-for-sale financial assets, the Group assesses at each reporting date whether there is objective evidence that an investment or a group of investments is impaired. 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 is recognized in profit or loss as an impairment loss. The amount of the cumulative loss is 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.
vi. Derecognition of financial instrument
The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or when the Group transfers substantially all the risks and rewards of ownership of the financial asset.
The Group derecognizes a financial liability when the obligation specified in the contract is discharged or cancelled or expired.
35
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
v. Treasury stock
Reacquired Company shares of stock are accounted for at their 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. The portion of treasury stock transferred for employees ownership program is accounted for at its fair value at grand date. 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 for distribution to the stockholders is recognized as a liability in the consolidated financial statements in the year in which the dividend is approved by the stockholders. The interim dividend as a liability based on the Board of Directors’ decision supported by the approval from the Board of Commissioners.
x. Basic earnings per share and earnings per ADS
Basic earnings per share is computed by dividing profit for the year attributable to owners of the parent company by the weighted average number of shares outstanding during the year. Income per ADS is computed by multiplying basic earnings per share by 200, the number of shares represented by each ADS.
The Company does not have potentially dilutive financial investments.
y. Segment information
The Group's 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 Group's chief operating decision maker i.e., the 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. Provision
Provision is recognized when the Group 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.
aa. Impairment of non-financial assets
The Group assesses, at the end of each reporting period, whether there is an indication that an asset may be impaired. If such indication exists, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the Cash-Generating Unit (“CGU”) to which the asset belongs (“the asset’s CGU”).
The recoverable amount of an asset (either individual asset or CGU) is the higher of the asset’s fair value less costs to sell and its value in use. Where the carrying amount of the asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing the value in use, the estimated net future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
36
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
aa. Impairment of non-financial assets (continued)
In determining fair value less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, the Group uses an appropriate valuation model to determine the fair value of the asset. These calculations are corroborated by valuation multiples or other available fair value indicators.
Impairment losses of continuing operations are recognized in profit or loss under “Depreciation and Amortization” in the consolidated statement of profit or loss and other comprehensive income.
An assessment is made at the end of each reporting period as to whether there is any indication that previously recognized impairment losses for an asset, other than goodwill, may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss for an asset, other than goodwill, is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited such that the carrying amount of the asset does not exceed its recoverable amount, nor exceeds the carrying amount that would have been determined, net of depreciation, had no impairment been recognized for the asset in prior periods. Reversal of an impairment loss is recognized in profit or loss.
Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment loss relating to goodwill cannot be reversed in future periods.
ab. Changes in accounting policies and disclosures
Implementation of Offsetting Financial Assets and Financial Liabilities (PSAK 50)
The Group applied Offsetting Financial Assets and Financial Liabilities (PSAK 50) retrospectively in the current period in accordance with the transitional provisions set out in the amendments. The comparative balances are accordingly restated.
These amendments clarify, among others things, that the right to set off must not only be legally enforceable in the normal course of business, but must also be enforceable in the events of default, bankruptcy or insolvency of all of the counterparties to contracts, including the Group itself.
The Group re-assessed its contracts that include an enforceable right to set off in the normal course of business and the prevailing laws and regulations, and concluded that the right to set off would not remain and be exercisable in the event of default, insolvency or bankruptcy. Accordingly, the set-off criterion is not met and the financial asset and liability should not be offset, and the gross amount is presented in the consolidated statement of financial position.
37
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ab. Changes in accounting policies and disclosures (continued)
Implementation of Offsetting Financial Assets and Financial Liabilities (PSAK 50) (continued)
As a result of the amendments, the comparative figures in the consolidated statements of financial position have been restated as follows:
|
Before restatement |
|
Restatement |
|
After restatement |
|
Consolidated statement of financial position as of January 1, 2014 |
|
|
|
|
|
|
Trade receivables |
|
|
|
|
|
|
Related parties |
900 |
|
203 |
|
1,103 |
|
Third parties |
5,126 |
|
394 |
|
5,520 |
|
Trade payables |
|
|
|
|
|
|
Related parties |
826 |
|
203 |
|
1,029 |
|
Third parties |
10,774 |
|
394 |
|
11,168 |
|
|
Before restatement |
|
Restatement |
|
After restatement |
|
Consolidated statement of financial position as of December 31, 2014 |
|
|
|
|
|
|
Trade receivables |
|
|
|
|
|
|
Related parties |
746 |
|
127 |
|
873 |
|
Third parties |
5,719 |
|
405 |
|
6,124 |
|
Trade payables |
|
|
|
|
|
|
Related parties |
770 |
|
127 |
|
897 |
|
Third parties |
11,060 |
|
405 |
|
11,465 |
|
The implementation of PSAK 50 (2014), did not have impact on the consolidated statements of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows.
Implementation of PSAK 24, Employee Benefits (Revised 2013)
The Group applied PSAK 24 (Revised 2013) retrospectively at the current period in accordance with the requirements of the revised standard. Therefore, the statement of the financial position as at the beginning of the earliest comparative period (January 1, 2014) and the related comparative items have been restated.
As a result of the changes, the comparative figures in the consolidated financial statements have been restated as follows:
|
Before restatement |
|
Restatement |
|
After restatement |
|
Consolidated statement of financial position as of January 1, 2014 |
|
|
|
|
|
|
Prepaid pension benefit costs |
927 |
|
22 |
|
949 |
|
Deferred tax assets – net |
82 |
|
(15 |
) |
67 |
|
Deferred tax payable – net |
3,004 |
|
(96 |
) |
2,908 |
|
Post-retirement health care benefit costs provisions |
752 |
|
241 |
|
993 |
|
Pension and other post-retirement benefits |
2,795 |
|
470 |
|
3,265 |
|
38
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ab. Changes in accounting policies and disclosures (continued)
Implementation of PSAK 24, Employee Benefits (Revised 2013) (continued)
|
Before restatement |
|
Restatement |
|
After restatement |
|
Consolidated statement of financial position as of Januari 1, 2014 (continued) |
|
|
|
|
|
|
Retained earnings |
|
|
|
|
|
|
Unappropriated |
43,291 |
|
(658 |
) |
42,633 |
|
Net equity attributable to owners of |
|
|
|
|
|
|
The parent company – net |
60,542 |
|
(658 |
) |
59,884 |
|
Non-controlling interests |
16,882 |
|
50 |
|
16,932 |
|
|
Before restatement |
|
Restatement |
|
After restatement |
|
Consolidated statement of financial position as of December 31, 2014 |
|
|
|
|
|
|
Prepaid pension benefit costs |
771 |
|
399 |
|
1,170 |
|
Deferred tax assets – net |
99 |
|
(4 |
) |
95 |
|
Deferred tax payable – net |
2,743 |
|
(40 |
) |
2,703 |
|
Post-retirement health care benefit costs provisions |
602 |
|
(161 |
) |
441 |
|
Pension and other post-retirement benefits |
3,092 |
|
582 |
|
3,674 |
|
Retained earnings |
|
|
|
|
|
|
Unappropriated |
47,986 |
|
9 |
|
47,995 |
|
Net equity attributable to owners of |
|
|
|
|
|
|
The parent company – net |
67,807 |
|
9 |
|
67,816 |
|
Non-controlling interests |
18,318 |
|
5 |
|
18,323 |
|
|
Before restatement |
|
Restatement |
|
After restatement |
|
Consolidated statement of comprehensive income for the six months period ended September 30, 2014 |
|
|
|
|
|
|
Personnel expenses |
(7,215 |
) |
(183 |
) |
(7,398 |
) |
Operating profit |
22,132 |
|
(183 |
) |
21,949 |
|
Profit before income tax |
21,715 |
|
(183 |
) |
21,532 |
|
Income tax benefit - deferred |
70 |
|
4 |
|
74 |
|
Income tax expense - net |
(5,435 |
) |
4 |
|
(5,431 |
) |
Profit for the year |
16,280 |
|
(179 |
) |
16,101 |
|
Profit for the year attributable to |
|
|
|
|
|
|
Owners of the parent company |
11,446 |
|
(178 |
) |
11,268 |
|
Non-controlling interests |
4,834 |
|
(1 |
) |
4,833 |
|
Net comprehensive income for the year attributable to |
|
|
|
|
|
|
Owners of the parent company |
11,434 |
|
(178 |
) |
11,256 |
|
Non-controlling interests |
4,834 |
|
(1 |
) |
4,833 |
|
Basic and diluted earnings per share (in full amount) |
|
|
|
|
|
|
Net income per share |
117.36 |
|
(2 |
) |
115.53 |
|
Net income per ADS |
23,471.75 |
|
(366 |
) |
23,105.79 |
|
39
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ab. Changes in accounting policies and disclosures (continued)
PSAK 24 (Revised 2013) also requires more extensive disclosures. These have been provided in Note 34.
The implementation of PSAK 24, Employee Benefits (Revised 2013), have no impact on the consolidated statements of cash flows.
The overall impact of the implementation of those revised standards in the consolidated financial statements are as follows:
|
Before restatement |
|
Restatement |
|
After restatement |
|
Consolidated statement of financial position as of January 1, 2014 |
|
|
|
|
|
|
Total current assets |
33,075 |
|
597 |
|
33,672 |
|
Total non current assets |
94,876 |
|
7 |
|
94,883 |
|
Total assets |
127,951 |
|
604 |
|
128,555 |
|
Total current liabilities |
28,437 |
|
597 |
|
29,034 |
|
Total non current liabilities |
22,090 |
|
615 |
|
22,705 |
|
Total liabilities |
50,527 |
|
1,212 |
|
51,739 |
|
Total equity |
77,424 |
|
(608 |
) |
76,816 |
|
Total liabilities and equity |
127,951 |
|
604 |
|
128,555 |
|
|
Before restatement |
|
Restatement |
|
After restatement |
|
Consolidated statement of financial position as of December 31, 2014 |
|
|
|
|
|
|
Total current assets |
33,762 |
|
532 |
|
34,294 |
|
Total non current assets |
107,133 |
|
395 |
|
107,528 |
|
Total assets |
140,895 |
|
927 |
|
141,822 |
|
Total current liabilities |
31,786 |
|
532 |
|
32,318 |
|
Total non current liabilities |
22,984 |
|
381 |
|
23,365 |
|
Total liabilities |
54,770 |
|
913 |
|
55,683 |
|
Total equity |
86,125 |
|
14 |
|
86,139 |
|
Total liabilities and equity |
140,895 |
|
927 |
|
141,822 |
|
40
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ac. Critical accounting estimates and judgements (continued)
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 Group 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 benefit 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 benefit obligations.
The Group determines 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 Group considers 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 benefit 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 benefit obligations are based in part on current market conditions. Additional information is disclosed in Notes 33, 34 and 35.
ii. Useful lives of property and equipment
The Group estimate the useful lives of their property and equipment 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 Group’s collective assessment of industry practice, internal technical evaluation and experience with similar assets.
The Group review estimates of useful lives at least each financial year end and such estimates 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 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 a change in accounting estimates and is applied prospectively in profit or loss in the period of the change and future periods.
Details of the nature and carrying amount of property and equipment are disclosed in Note 10.
iii. Provision for impairment of receivables
The Group assesses 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. Details of the nature and carrying amount of provision for impairment of receivables are disclosed in Note 6.
41
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ac. Critical accounting estimates and judgments (continued)
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 Group recognizes liabilities for anticipated tax audit issues based on estimates of 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 year in which such determination is made. Details of the nature and carrying amount of income tax are disclosed in Note 30.
vi. Impairment of non-financial assets
The Group annually assesses 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 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.
The Group determines the estimated recoverable amount based on the future cash flows projections from the continuing use of the asset and the net cash flows to be received for the disposal of an asset at the end of its useful life. Those projections are estimated for the asset in its current condition and do not include future cash flows that are expected to arise from (a) a future restructuring, to which the Group is not yet committed, and (b) improving or enhancing the asset’s performance.
The assessment of recoverable amount is sensitive to the management’s judgments in estimating future forecasted cash flows, as well as the selection of discount rate, and technological and economic obsolescence rate. These judgments are applied based on management’s understanding of historical and current information, and expectations of the Group’s future plan and performance. Further details are presented in Note 10.
42
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3. BUSINESS COMBINATIONS
Acquisition of Contact Centers Australia Pty. Ltd. (“CCA”)
On June 14, 2014, the shareholders of CCA and Telkom Australia entered into an agreement to purchase 75% ownership in CCA amounting for AU$10,843,000 or equivalent to Rp115 billion. The acquisition was completed on September 25, 2014.
CCA is a private company based in Surry Hills, Sydney and was established in 2002. This company provides comprehensive and integrated Business Process Outsourcing solutions with other services for a complete end-to-end solution.
The fair values of the assets acquired and liabilities assumed at the acquisition date were as follows:
|
Total |
|
Cash and equivalents |
6 |
|
Trade receivable |
20 |
|
Other current assets |
17 |
|
Property and equipment |
6 |
|
Intangibles |
78 |
|
Lease |
4 |
|
Current liabilities |
(29 |
) |
Non current liabilities |
(2 |
) |
Fair value of identifiable net asset acquired |
100 |
|
Fair value of non-controlling interest |
(39 |
) |
Goodwill |
54 |
|
Fair value of consideration transferred |
115 |
|
The prevailing exchange rate prevailing at the time of acquisition was Rp10,655/AU$.
Since the acquisition date, CCA has generated operating revenue amounting to Rp147 billion. The net cash flow to acquire control, net of cash acquired, amounting to Rp110 billion.
The business combination transactions mentioned above have complied to the related Bapepam-LK Regulations.
43
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
4. CASH AND CASH EQUIVALENTS
|
|
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
Lenders |
|
Currency |
|
Original Currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Cash on hand |
|
Rp |
|
- |
|
78 |
|
- |
|
24 |
|
Cash in banks |
|
|
|
|
|
|
|
|
|
|
|
Related parties |
|
|
|
|
|
|
|
|
|
|
|
PT Bank Rakyat Indonesia (Persero) Tbk (“BRI”) |
|
Rp |
|
- |
|
160 |
|
- |
|
213 |
|
|
|
US$ |
|
117 |
|
1,716 |
|
8 |
|
104 |
|
PT Bank Mandiri (Persero) Tbk (“Bank Mandiri”) |
|
Rp |
|
- |
|
876 |
|
- |
|
611 |
|
|
|
US$ |
|
18 |
|
266 |
|
18 |
|
226 |
|
|
|
JPY |
|
8 |
|
1 |
|
8 |
|
1 |
|
|
|
EUR |
|
0 |
|
7 |
|
0 |
|
0 |
|
|
|
HKD |
|
1 |
|
2 |
|
2 |
|
3 |
|
PT Bank Negara Indonesia (Persero) Tbk (“BNI”) |
|
Rp |
|
- |
|
293 |
|
- |
|
384 |
|
|
|
US$ |
|
16 |
|
241 |
|
19 |
|
233 |
|
|
|
EUR |
|
5 |
|
79 |
|
7 |
|
99 |
|
|
|
SGD |
|
0 |
|
0 |
|
0 |
|
0 |
|
Others |
|
Rp |
|
- |
|
9 |
|
- |
|
15 |
|
|
|
US$ |
|
0 |
|
0 |
|
0 |
|
0 |
|
Sub-total |
|
|
|
|
|
3,650 |
|
|
|
1,889 |
|
Third parties |
|
|
|
|
|
|
|
|
|
|
|
Standard Chartered Bank (“SCB”) |
|
Rp |
|
- |
|
42 |
|
- |
|
0 |
|
|
|
US$ |
|
30 |
|
437 |
|
30 |
|
368 |
|
|
|
SGD |
|
3 |
|
33 |
|
3 |
|
30 |
|
PT Bank Muamalat Indonesia Tbk (“Bank Muamalat”) |
|
Rp |
|
- |
|
192 |
|
- |
|
16 |
|
|
|
US$ |
|
0 |
|
1 |
|
- |
|
- |
|
Hong Kong and Shanghai Banking Corporation Ltd (“HSBC”) |
|
US$ |
|
8 |
|
120 |
|
7 |
|
88 |
|
|
|
HKD |
|
3 |
|
7 |
|
4 |
|
6 |
|
|
|
SGD |
|
1 |
|
7 |
|
0 |
|
1 |
|
Deutsche Bank AG (“DB) |
|
Rp |
|
- |
|
119 |
|
- |
|
60 |
|
|
|
US$ |
|
0 |
|
3 |
|
2 |
|
28 |
|
|
|
EUR |
|
0 |
|
0 |
|
1 |
|
15 |
|
PT Bank CIMB Niaga Tbk (“Bank CIMB Niaga”) |
|
Rp |
|
- |
|
33 |
|
- |
|
40 |
|
|
|
US$ |
|
0 |
|
0 |
|
0 |
|
0 |
|
Others (each below Rp75 billion) |
|
Rp |
|
- |
|
58 |
|
- |
|
71 |
|
|
|
US$ |
|
4 |
|
52 |
|
2 |
|
20 |
|
|
|
EUR |
|
1 |
|
13 |
|
1 |
|
15 |
|
|
|
AUD |
|
0 |
|
3 |
|
0 |
|
1 |
|
|
|
TWD |
|
27 |
|
12 |
|
21 |
|
8 |
|
|
|
MYR |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
|
HKD |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
|
MOP |
|
24 |
|
0 |
|
22 |
|
0 |
|
|
|
MMK |
|
0 |
|
0 |
|
0 |
|
0 |
|
Sub-total |
|
|
|
|
|
1,132 |
|
|
|
767 |
|
Total cash in banks |
|
|
|
|
|
4,782 |
|
|
|
2,656 |
|
Time deposits |
|
|
|
|
|
|
|
|
|
|
|
Related parties |
|
|
|
|
|
|
|
|
|
|
|
BRI |
|
Rp |
|
- |
|
3,157 |
|
- |
|
4,443 |
|
|
|
US$ |
|
166 |
|
2,433 |
|
138 |
|
1,713 |
|
BNI |
|
Rp |
|
- |
|
4,209 |
|
- |
|
1,285 |
|
|
|
US$ |
|
1 |
|
9 |
|
1 |
|
8 |
|
Bank Mandiri |
|
Rp |
|
- |
|
2,254 |
|
- |
|
852 |
|
|
|
US$ |
|
40 |
|
586 |
|
20 |
|
248 |
|
Others |
|
Rp |
|
- |
|
52 |
|
- |
|
26 |
|
Sub-total |
|
|
|
|
|
12,700 |
|
|
|
8,575 |
|
44
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
4. CASH AND CASH EQUIVALENTS (continued)
|
|
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Third parties |
|
|
|
|
|
|
|
|
|
|
|
Rupiah |
|
|
|
|
|
|
|
|
|
|
|
PT Bank Permata Tbk (“Bank Permata”) |
|
Rp |
|
- |
|
2,350 |
|
- |
|
1,350 |
|
|
|
US$ |
|
- |
|
- |
|
58 |
|
720 |
|
PT Bank Mega Tbk (“Bank Mega”) |
|
Rp |
|
- |
|
954 |
|
- |
|
1,057 |
|
|
|
US$ |
|
113 |
|
1,161 |
|
26 |
|
323 |
|
Bank CIMB Niaga |
|
Rp |
|
- |
|
1,600 |
|
- |
|
2,057 |
|
PT Bank UOB Indonesia (“UOB”) |
|
Rp |
|
- |
|
500 |
|
- |
|
100 |
|
PT Bank OCBC NISP Tbk (“OCBC NISP”) |
|
Rp |
|
- |
|
500 |
|
- |
|
- |
|
|
|
US$ |
|
- |
|
- |
|
36 |
|
448 |
|
PT Bank BukopinTbk (“Bank Bukopin”) |
|
Rp |
|
- |
|
298 |
|
- |
|
50 |
|
|
|
US$ |
|
10 |
|
146 |
|
- |
|
- |
|
Bank Panin Tbk (”Bank Panin”) |
|
Rp |
|
- |
|
175 |
|
- |
|
28 |
|
Bank Muamalat |
|
Rp |
|
- |
|
97 |
|
- |
|
66 |
|
|
|
US$ |
|
5 |
|
71 |
|
- |
|
- |
|
Bank Tabungan Pensiun Nasional (“Bank BTPN”) |
|
Rp |
|
- |
|
152 |
|
- |
|
1 |
|
PT Bank Danamon Indonesia Tbk (“Bank Danamon”) |
|
Rp |
|
- |
|
130 |
|
1 |
|
16 |
|
PT Bank Ekonomi Raharja Tbk (“Bank Ekonomi”) |
|
Rp |
|
- |
|
- |
|
- |
|
75 |
|
Others (each below Rp75 billion) |
|
Rp |
|
- |
|
70 |
|
- |
|
126 |
|
Sub-total |
|
|
|
|
|
8,704 |
|
|
|
6,417 |
|
Total time deposits |
|
|
|
|
|
21,404 |
|
|
|
14,992 |
|
Grand Total |
|
|
|
|
|
26,264 |
|
|
|
17,672 |
|
Interest rates per annum on time deposits are as follows:
|
September 30, 2015 |
|
December 31, 2014 |
|
Rupiah |
4.25%-10.50% |
|
4.00%-11.50% |
|
Foreign currencies |
0.10%-3.00% |
|
0.03%-3.00% |
|
The related parties in which the Group places its funds are state-owned banks. The Group placed a majority of its 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 36 for details of related party transactions.
45
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
5. OTHER CURRENT FINANCIAL ASSETS
|
|
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Time deposits |
|
|
|
|
|
|
|
|
|
|
|
Related parties |
|
|
|
|
|
|
|
|
|
|
|
Bank Mandiri |
|
US$ |
|
20 |
|
294 |
|
8 |
|
100 |
|
Third parties |
|
|
|
|
|
|
|
|
|
|
|
SCB |
|
US$ |
|
4 |
|
56 |
|
1 |
|
10 |
|
Total time deposits |
|
|
|
|
|
350 |
|
|
|
110 |
|
Available-for-sale financial assets |
|
|
|
|
|
|
|
|
|
|
|
Related parties |
|
|
|
|
|
|
|
|
|
|
|
Government |
|
Rp |
|
- |
|
- |
|
- |
|
103 |
|
|
|
US$ |
|
2 |
|
31 |
|
2 |
|
27 |
|
State-owned enterprises |
|
US$ |
|
4 |
|
63 |
|
4 |
|
55 |
|
Sub-total |
|
Rp |
|
|
|
94 |
|
|
|
185 |
|
Third parties |
|
|
|
|
|
69 |
|
|
|
69 |
|
Total available-for-sale financial assets |
|
|
|
|
|
163 |
|
|
|
254 |
|
Sinking fund |
|
Rp |
|
|
|
2,165 |
|
|
|
2,121 |
|
Derrivative |
|
Rp |
|
|
|
290 |
|
- |
|
290 |
|
Others |
|
Rp |
|
|
|
25 |
|
|
|
21 |
|
|
|
US$ |
|
0 |
|
3 |
|
0 |
|
1 |
|
|
|
AUD |
|
0 |
|
1 |
|
- |
|
- |
|
Total |
|
|
|
|
|
2,997 |
|
|
|
2,797 |
|
Sinking fund mostly represents Telkomsel’s account in BNI in relation to the Conditional Business Transfer Agreement between Telkomsel and the Company (Note 39c.ii).
The time deposits have maturities of more than three months but not more than one year, with interest rates as follows:
|
September 30, 2015 |
|
December 31, 2014 |
|
Foreign currencies |
0.75%-0.93% |
|
0.85%-1.00% |
|
Refer to Note 36 for details of related party transactions.
46
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
6. 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
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
State-owned enterprises |
395 |
|
458 |
|
PT Indosat Tbk (“Indosat”) |
299 |
|
195 |
|
Indonusa |
286 |
|
290 |
|
CSM |
62 |
|
52 |
|
Others |
246 |
|
280 |
|
Total |
1,288 |
|
1,275 |
|
Provision for impairment of receivables |
(664 |
) |
(402 |
) |
Net |
624 |
|
873 |
|
(ii) Third parties
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Individual and business subscribers |
10,051 |
|
8,033 |
|
Overseas international carriers |
1,164 |
|
785 |
|
Total |
11,215 |
|
8,818 |
|
Provision for impairment of receivables |
(2,425 |
) |
(2,694 |
) |
Net |
8,790 |
|
6,124 |
|
b. By age
(i) Related parties
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Up to 6 months |
778 |
|
712 |
|
7 to 12 months |
167 |
|
125 |
|
More than 12 months |
343 |
|
438 |
|
Total |
1,288 |
|
1,275 |
|
Provision for impairment of receivables |
(664 |
) |
(402 |
) |
|
624 |
|
873 |
|
47
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
6. TRADE RECEIVABLES (continued)
b. By age (continued)
(ii) Third parties
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Up to 3 months |
5,998 |
|
5,287 |
|
More than 3 months |
5,217 |
|
3,531 |
|
Total |
11,215 |
|
8,818 |
|
Provision for impairment of receivables |
(2,425 |
) |
(2,694 |
) |
Net |
8,790 |
|
6,124 |
|
(iii) Aging of total trade receivables
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
||||
|
Gross |
|
Provision for impairment of receivables |
|
Gross |
|
Provision for impairment of receivables |
|
Not past due |
3,812 |
|
94 |
|
3,595 |
|
127 |
|
Past due up to 3 months |
2,838 |
|
148 |
|
2,294 |
|
262 |
|
Past due more than 3 to 6 months |
1,330 |
|
310 |
|
645 |
|
321 |
|
Past due more than 6 months |
4,523 |
|
2,537 |
|
3,559 |
|
2,386 |
|
Total |
12,503 |
|
3,089 |
|
10,093 |
|
3,096 |
|
The Group has made provision for impairment of trade receivables based on the collective assessment of historical impairment rates and individual assessment of its customers’ credit history. The Group does not apply a distinction between related party and third party receivables in assessing amounts past due. As of September 30, 2015 and December 31,2014, the carrying amount of trade receivables of the Group considered past due but not impaired amounted to Rp5,696 billion and Rp3,365 billion, respectively. Management believes that receivables past due but not impaired, along with trade receivables that are neither past due nor impaired, are due from customers with good credit history and are expected to be recoverable.
c. By currency
(i) Related parties
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Rupiah |
1,268 |
|
1,249 |
|
U.S. dollar |
20 |
|
26 |
|
Total |
1,288 |
|
1,275 |
|
Provision for impairment of receivables |
(664 |
) |
(402 |
) |
Net |
624 |
|
873 |
|
48
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
6. TRADE RECEIVABLES (continued)
c. By currency (continued)
(ii) Third parties
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Rupiah |
9,605 |
|
7,730 |
|
U.S. dollar |
1,558 |
|
1,053 |
|
Australian dollar |
50 |
|
31 |
|
Euro |
1 |
|
3 |
|
Hong Kong dollar |
1 |
|
1 |
|
Total |
11,215 |
|
8,818 |
|
Provision for impairment of receivables |
(2,425 |
) |
(2,694 |
) |
Net |
8,790 |
|
6,124 |
|
d. Movements in the provision for impairment of receivables
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Beginning balance |
3,096 |
|
2,872 |
|
Provision recognized during the year (Note 28) |
948 |
|
784 |
|
Receivables written-off |
(955 |
) |
(560 |
) |
Ending balance |
3,089 |
|
3,096 |
|
The receivables written off relate to both related party and third party trade receivables.
Management believes that the provision for impairment of trade receivables is adequate to cover losses on uncollectible receivables.
As of June 30, 2015, certain trade receivables of the subsidiaries amounting to Rp2,571 billion have been pledged as collateral under lending agreements (Notes 16, 19 and 20).
Refer to Note 36 for details of related party transactions.
49
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
7. INVENTORIES
|
September 30, 2015 |
|
December 31, 2014 |
|
Components |
454 |
|
279 |
|
SIM cards, RUIM cards, set top boxes, and blank prepaid vouchers |
145 |
|
105 |
|
Others |
135 |
|
133 |
|
Total |
734 |
|
517 |
|
Provision for obsolescence |
|
|
|
|
Components |
(17 |
) |
(15 |
) |
SIM cards, RUIM cards, set top boxes, and blank prepaid vouchers |
(27 |
) |
(28 |
) |
Others |
0 |
|
0 |
|
Total |
(44 |
) |
(43 |
) |
Net |
690 |
|
474 |
|
Movements in the provision for obsolescence are as follows:
|
September 30, 2015 |
|
December 31, 2014 |
|
Beginning balance |
43 |
|
22 |
|
Provision recognized during the year |
4 |
|
39 |
|
Inventory write off |
(3 |
) |
(18 |
) |
Ending balance |
44 |
|
43 |
|
The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses as of September 30, 2015 and December 31, 2014 amounted to Rp1,450 billion and Rp1,031 billion, respectively (Note 27).
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 Rp52 billion have been pledged as collateral under lending agreements (Notes 16 and 20).
As of September 30, 2015 and December 31, 2014, modules and components held by the Group has been insured against fire, theft, and other specific risks with book value amounting to Rp221 billion and Rp237 billion, respectively. Modules are recorded as part of property and equipment. Total sum insured as of September 30, 2015 and December 31, 2014 amounted to Rp291 billion and 266 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of inventories arising from the insured risks.
50
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
8. ADVANCES AND PREPAID EXPENSES
|
September 30, 2015 |
|
December 31, 2014 |
|
Frequency license (Notes 39c.i and 39c.ii) |
1,304 |
|
2,699 |
|
Prepaid rental |
986 |
|
983 |
|
Advances |
732 |
|
410 |
|
Salaries |
444 |
|
218 |
|
Advances to employee |
88 |
|
15 |
|
Others (each below Rp75 billion) |
632 |
|
408 |
|
Total |
4,186 |
|
4,733 |
|
Refer to Note 36 for details of related party transactions.
9. LONG-TERM INVESTMENTS
|
September 30, 2015 |
|
||||||||||||
|
Percentage of ownership |
|
Beginning balance |
|
Addition (Deduction) |
|
Share of net (loss) profit of associated company |
|
Dividend |
|
Translation adjustment |
|
Ending balance |
|
Long-term investments in associated companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tiphonea |
25 |
|
1,392 |
|
- |
|
23 |
|
(17 |
) |
- |
|
1,398 |
|
Indonusab |
20 |
|
221 |
|
- |
|
- |
|
- |
|
- |
|
221 |
|
Teltranetc |
51 |
|
52 |
|
- |
|
(12 |
) |
- |
|
- |
|
40 |
|
PT Melon Indonesia (“Melon”)d |
51 |
|
43 |
|
0 |
|
7 |
|
- |
|
- |
|
50 |
|
PT Integrasi Logistik Cipta Solusi (“ILCS”)e |
49 |
|
38 |
|
- |
|
(0 |
) |
- |
|
- |
|
38 |
|
Telin Malaysiaf |
49 |
|
6 |
|
10 |
|
(12 |
) |
- |
|
(4 |
) |
0 |
|
CSMg |
25 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Sub-total |
|
|
1,752 |
|
10 |
|
6 |
|
(17 |
) |
(4 |
) |
1,747 |
|
Other long-term investment |
|
|
15 |
|
- |
|
- |
|
- |
|
- |
|
15 |
|
Total long-term investments |
|
|
1,767 |
|
10 |
|
6 |
|
(17 |
) |
(4 |
) |
1,762 |
|
51
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. LONG-TERM INVESTMENTS (continued)
Summarized financial information of the Group’s investments accounted under the equity method for 2015:
|
Tiphone* |
|
Indonusa |
|
Teltranet |
|
Melon |
|
ILCS |
|
Telin Malaysia |
|
CSM** |
|
Statements of financial position |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
3,466 |
|
527 |
|
77 |
|
133 |
|
92 |
|
8 |
|
157 |
|
Non-current assets |
884 |
|
240 |
|
26 |
|
30 |
|
18 |
|
6 |
|
933 |
|
Current liabilities |
(1,148 |
) |
(580 |
) |
(21 |
) |
(64 |
) |
(32 |
) |
(25 |
) |
(1,297 |
) |
Non-current liabilities |
(2,567 |
) |
(545 |
) |
- |
|
(2 |
) |
(1 |
) |
- |
|
(317 |
) |
Equity (deficit) |
2,635 |
|
(358 |
) |
82 |
|
97 |
|
77 |
|
(11 |
) |
(524 |
) |
Statements of profit or loss and other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
9,071 |
|
376 |
|
- |
|
141 |
|
44 |
|
5 |
|
173 |
|
Cost of revenues and operating expenses |
(8,550 |
) |
(462 |
) |
(36 |
) |
(131 |
) |
(44 |
) |
(28 |
) |
(382 |
) |
Other (expenses) income, including finance costs – net |
(276 |
) |
(44 |
) |
13 |
|
4 |
|
(1 |
) |
- |
|
13 |
|
Profit (loss) before tax |
245 |
|
(130 |
) |
(23 |
) |
14 |
|
(1 |
) |
(23 |
) |
(196 |
) |
Income tax expense |
(62 |
) |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Profit (loss) for the year |
183 |
|
(130 |
) |
(23 |
) |
14 |
|
(1 |
) |
(23 |
) |
(196 |
) |
* Based on statement of financial position and statement of profit or loss and other comprehensive income as of March, 31 2015 and for the three months period then ended
** Based on statement of financial position and statement of profit or loss and other comprehensive income as of December 31, 2014 and for the year then ended
|
December 31, 2014 |
|
||||||||||
|
Percentage of ownership |
|
Beginning balance |
|
Addition (Deduction) |
|
Share of net (loss) profit of associated company |
|
Translation adjustment |
|
Ending balance |
|
Long-term investments in associated companies: |
|
|
|
|
|
|
|
|
|
|
|
|
Tiphonea |
24.92 |
|
- |
|
1,395 |
|
(3 |
) |
- |
|
1,392 |
|
Indonusab |
20.00 |
|
189 |
|
32 |
|
- |
|
- |
|
221 |
|
Teltranetc |
51.00 |
|
- |
|
52 |
|
(0 |
) |
- |
|
52 |
|
PT Melon Indonesia (“Melon”)d |
51.00 |
|
39 |
|
- |
|
4 |
|
- |
|
43 |
|
PT Integrasi Logistik Cipta Solusi (“ILCS”)e |
49.00 |
|
37 |
|
- |
|
1 |
|
- |
|
38 |
|
Telin Malaysiaf |
49.00 |
|
18 |
|
8 |
|
(19 |
) |
(1 |
) |
6 |
|
CSMg |
25.00 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total long-term investments |
|
|
283 |
|
1,487 |
|
(17 |
) |
(1 |
) |
1,752 |
|
Other long-term investments |
|
|
21 |
|
(6 |
) |
- |
|
- |
|
15 |
|
Total long-term investments |
|
|
304 |
|
1,481 |
|
(17 |
) |
(1 |
) |
1,767 |
|
52
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. LONG-TERM INVESTMENTS (continued)
Summarized financial information of the Group’s investments accounted under the equity method for 2014:
|
Tiphone |
|
Indonusa |
|
Teltranet |
|
Melon |
|
ILCS |
|
Telin Malaysia |
|
CSM |
|
Statements of financial position |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
4,469 |
|
396 |
|
104 |
|
101 |
|
86 |
|
8 |
|
157 |
|
Non-current assets |
1,259 |
|
365 |
|
0 |
|
36 |
|
24 |
|
4 |
|
933 |
|
Current liabilities |
(2,465 |
) |
(382 |
) |
0 |
|
(51 |
) |
(31 |
) |
(1 |
) |
(1,297 |
) |
Non-current liabilities |
(275 |
) |
(605 |
) |
- |
|
(2 |
) |
(2 |
) |
- |
|
(317 |
) |
Equity (deficit) |
2,988 |
|
(226 |
) |
104 |
|
84 |
|
77 |
|
11 |
|
(524 |
) |
Statements of comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
6,314 |
|
281 |
|
- |
|
92 |
|
73 |
|
7 |
|
173 |
|
Cost of revenues and operating expenses |
(5,957 |
) |
(298 |
) |
- |
|
(88 |
) |
(88 |
) |
(39 |
) |
(382 |
) |
Other (expenses) income, including finance costs – net |
(152 |
) |
(20 |
) |
- |
|
2 |
|
2 |
|
- |
|
13 |
|
Profit (loss) before tax |
205 |
|
(37 |
) |
- |
|
6 |
|
(13 |
) |
(32 |
) |
(196 |
) |
Income tax expense |
(52 |
) |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Profit (loss) for the year |
153 |
|
(37 |
) |
- |
|
6 |
|
(13 |
) |
(32 |
) |
(196 |
) |
* Based on statement of financial position as of December 31, 2014 and statement of profit or loss and other comprehensive income for the three months period ended March 31, 2014
** Based on statement of financial position and statement of profit or loss and other comprehensive income as of December 31, 2014 and for the year then ended
a Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as for celullar phone including spare parts, accessories, pulse reload vouchers, repair service and content provider through its subsidiaries. On September 18, 2014, the Company through PINS acquired 25% ownership in Tiphone for Rp1,395 billion. As of September 30, 2015, the fair value of the investment is Rp1,255 billion. The fair value is calculated by multiplying the number of shares by the published price quotation as of September 30, 2015 (Rp715 per share).
Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of December 31, 2014, is as follows:
|
Amount |
|
Assets |
5,728 |
|
Liabilities |
(2,740 |
) |
Net assets |
2,988 |
|
Group’s proportionate share of net asset s (24.92%) |
745 |
|
Goodwill |
647 |
|
Carrying amount of long-term investment |
1,392 |
|
b Indonusa had been a subsidiary of the Company until 2013 when the Company disposed 80% of its interest in Indonusa. On May 14, 2014, based on the Circular Resolution of the Stockholders of Indonusa as covered by notarial deed No. 57 dated April 23, 2014 of FX Budi Santoso Isbandi, S.H., which was approved by the MoLHR in its Letter No. AHU-02078.40.20.2014 dated April 29, 2014, Indonusa’s stockholders approved an increase in its issued and fully paid capital by Rp80 billion. The Company has waived its right to own the new shares issued and transferred it to Metra and, as a result, Metra’s ownership in Indonusa increased to 4.33%.
c Investment in Teltranet is accounted for under the equity method, which covered on an agreement between Metra and Telstra Holding Singapore Pte. Ltd. on August 29, 2014. Teltranet is engaged in communication system services (note 1d). Metra does not have control as it does not determine the financial and operating policies of Teltranet.
d Melon is engaged in providing Digital Content Exchange Hub services (“DCEH”). Metra does not have control over Melon due to the existence of substantive participating rights held by the other venturer over the financial and operating policies of Melon.
e ILCS is engaged in providing E-trade logistic services and other related services.
f Telin Malaysia is engaged in telecommunication services in Malaysia.
53
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. LONG-TERM INVESTMENTS (continued)
g CSM is engaged in providing Very Small Aperture Terminal (“VSAT”), network application services and consulting services on telecommunications technology and related facilities. The unrecognized share of losses of CSM for the year ended December 31, 2014 and 2013 RpRp131 billion and Rp80 billion, respectively.
10. PROPERTY AND EQUIPMENT
|
Januari 1, 2015 |
|
Additions |
|
Deductions |
|
Reclassifications/ Translations |
|
September 30, 2015 |
|
At cost: |
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
Land rights |
1,184 |
|
44 |
|
- |
|
(2 |
) |
1,226 |
|
Buildings |
4,571 |
|
58 |
|
- |
|
591 |
|
5,220 |
|
Leasehold improvements |
943 |
|
24 |
|
(23 |
) |
164 |
|
1,108 |
|
Switching equipment |
19,208 |
|
75 |
|
(66 |
) |
393 |
|
19,610 |
|
Telegraph, telex and data communication equipment |
6 |
|
|
- |
- |
|
(2 |
) |
4 |
|
Transmission installation and equipment |
107,573 |
|
2,295 |
|
(772 |
) |
7,342 |
|
116,438 |
|
Satellite, earth station and equipment |
7,927 |
|
46 |
|
- |
|
87 |
|
8,060 |
|
Cable network |
33,114 |
|
2,636 |
|
(166 |
) |
(78 |
) |
35,506 |
|
Power supply |
12,776 |
|
112 |
|
(50 |
) |
574 |
|
13,412 |
|
Data processing equipment |
10,242 |
|
136 |
|
(8 |
) |
267 |
|
10,637 |
|
Other telecommunications peripherals |
602 |
|
17 |
|
- |
|
(7 |
) |
612 |
|
Office equipment |
951 |
|
62 |
|
(4 |
) |
(2 |
) |
1,007 |
|
Vehicles |
346 |
|
100 |
|
(1 |
) |
2 |
|
447 |
|
Other equipment |
99 |
|
- |
|
- |
|
- |
|
99 |
|
Property under construction |
3,853 |
|
10,836 |
|
- |
|
(9,429 |
) |
5,260 |
|
Assets under finance lease |
|
|
|
|
|
|
|
|
|
|
Transmission installation and equipment |
5,882 |
|
237 |
|
(202 |
) |
- |
|
5,917 |
|
Data processing equipment |
102 |
|
- |
|
(10 |
) |
- |
|
92 |
|
Office equipment |
21 |
|
52 |
|
- |
|
(4 |
) |
69 |
|
Vehicles |
44 |
|
- |
|
- |
|
- |
|
44 |
|
CPE assets |
22 |
|
153 |
|
- |
|
- |
|
175 |
|
Power supply |
- |
|
113 |
|
- |
|
- |
|
113 |
|
RSA assets |
252 |
|
- |
|
- |
|
- |
|
252 |
|
Total |
209,718 |
|
16,996 |
|
(1,302 |
) |
(104 |
) |
225,308 |
|
|
January 1, 2015 |
|
Additions |
|
Deductions |
|
Reclassifications/ Translations |
|
September 30, 2015 |
|
Accumulated depreciation and impairment losses: |
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
Buildings |
1,954 |
|
161 |
|
- |
|
2 |
|
2,117 |
|
Leasehold improvements |
669 |
|
72 |
|
(23 |
) |
- |
|
718 |
|
Switching equipment |
13,861 |
|
1,034 |
|
(61 |
) |
(10 |
) |
14,824 |
|
Telegraph, telex and data communication equipment |
4 |
|
- |
|
- |
|
(2 |
) |
2 |
|
Transmission installation and equipment |
54,764 |
|
7,540 |
|
(764 |
) |
23 |
|
61,563 |
|
Satellite, earth station and equipment |
6,099 |
|
504 |
|
- |
|
2 |
|
6,605 |
|
Cable network |
18,762 |
|
975 |
|
(164 |
) |
(97 |
) |
19,476 |
|
Power supply |
7,978 |
|
909 |
|
(44 |
) |
10 |
|
8,853 |
|
Data processing equipment |
7,624 |
|
664 |
|
(8 |
) |
(6 |
) |
8,274 |
|
Other telecommunications peripherals |
322 |
|
51 |
|
- |
|
(5 |
) |
368 |
|
Office equipment |
659 |
|
88 |
|
(3 |
) |
16 |
|
760 |
|
Vehicles |
113 |
|
44 |
|
- |
|
- |
|
157 |
|
Other equipment |
97 |
|
1 |
|
- |
|
- |
|
98 |
|
Assets under finance lease |
|
|
|
|
|
|
|
|
|
|
Transmission installation and equipment |
1,681 |
|
720 |
|
(202 |
) |
- |
|
2,199 |
|
Data processing equipment |
79 |
|
11 |
|
(11 |
) |
- |
|
79 |
|
Office equipment |
6 |
|
32 |
|
- |
|
- |
|
38 |
|
Vehicles |
5 |
|
- |
|
- |
|
- |
|
5 |
|
CPE asets |
15 |
|
2 |
|
- |
|
16 |
|
33 |
|
Power supply |
- |
|
12 |
|
- |
|
- |
|
12 |
|
RSA assets |
217 |
|
10 |
|
- |
|
- |
|
227 |
|
Total |
114,909 |
|
12,830 |
|
(1,280 |
) |
(51 |
) |
126,408 |
|
Net Book Value |
94,809 |
|
|
|
|
|
|
|
98,900 |
|
54
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
|
Januari 1, 2014 |
|
Business acquisition |
|
Additions |
|
Deductions |
|
Reclassifications/ Translation |
|
December 31, 2014 |
|
At cost: |
|
|
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
|
|
Land rights |
1,098 |
|
- |
|
107 |
|
(21 |
) |
- |
|
1,184 |
|
Buildings |
4,224 |
|
- |
|
131 |
|
(19 |
) |
235 |
|
4,571 |
|
Leasehold improvements |
812 |
|
- |
|
49 |
|
(52 |
) |
134 |
|
943 |
|
Switching equipment |
18,705 |
|
- |
|
331 |
|
(496 |
) |
668 |
|
19,208 |
|
Telegraph, telex and data communication equipment |
6 |
|
- |
|
- |
|
- |
|
- |
|
6 |
|
Transmission installation and equipment |
95,853 |
|
- |
|
2,298 |
|
(1,235 |
) |
10,657 |
|
107,573 |
|
Satellite, earth station and equipment |
7,456 |
|
- |
|
312 |
|
(21 |
) |
180 |
|
7,927 |
|
Cable network |
28,987 |
|
- |
|
3,025 |
|
(250 |
) |
1,352 |
|
33,114 |
|
Power supply |
11,755 |
|
- |
|
225 |
|
(78 |
) |
874 |
|
12,776 |
|
Data processing equipment |
9,230 |
|
- |
|
684 |
|
(53 |
) |
381 |
|
10,242 |
|
Other telecommunications peripherals |
500 |
|
- |
|
102 |
|
- |
|
(0 |
) |
602 |
|
Office equipment |
770 |
|
4 |
|
191 |
|
(5 |
) |
(9 |
) |
951 |
|
Vehicles |
332 |
|
2 |
|
18 |
|
(6 |
) |
(0 |
) |
346 |
|
Other equipment |
104 |
|
- |
|
- |
|
- |
|
(5 |
) |
99 |
|
Property under construction |
1,971 |
|
- |
|
16,660 |
|
(15 |
) |
(14,763 |
) |
3,853 |
|
Assets under finance lease |
|
|
|
|
|
|
|
|
|
|
|
|
Transmission installation and equipment |
5,683 |
|
- |
|
495 |
|
(296 |
) |
- |
|
5,882 |
|
Data processing equipment |
123 |
|
- |
|
- |
|
(21 |
) |
- |
|
102 |
|
Office equipment |
7 |
|
- |
|
15 |
|
(1 |
) |
- |
|
21 |
|
Vehicles |
26 |
|
- |
|
18 |
|
- |
|
0 |
|
44 |
|
CPE assets |
22 |
|
- |
|
- |
|
- |
|
- |
|
22 |
|
RSA assets |
459 |
|
- |
|
- |
|
- |
|
(207 |
) |
252 |
|
Total |
188,123 |
|
6 |
|
24,661 |
|
(2,569 |
) |
(503 |
) |
209,718 |
|
|
January 1, 2014 |
|
Additions |
|
Impairments |
|
Deductions |
|
Reclassifications/ Translations |
|
December 31, 2014 |
|
Accumulated depreciation and impairment losses: |
|
|
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
|
|
Buildings |
1,840 |
|
135 |
|
- |
|
(16 |
) |
(5 |
) |
1,954 |
|
Leasehold improvements |
649 |
|
71 |
|
- |
|
(52 |
) |
1 |
|
669 |
|
Switching equipment |
12,903 |
|
1,549 |
|
- |
|
(496 |
) |
(95 |
) |
13,861 |
|
Telegraph, telex and data communication equipment |
3 |
|
1 |
|
- |
|
- |
|
- |
|
4 |
|
Transmission installation and equipment |
46,666 |
|
9,084 |
|
406 |
|
(1,161 |
) |
(231 |
) |
54,764 |
|
Satellite, earth station and equipment |
5,190 |
|
577 |
|
332 |
|
- |
|
(0 |
) |
6,099 |
|
Cable network |
17,758 |
|
1,101 |
|
67 |
|
(249 |
) |
85 |
|
18,762 |
|
Power supply |
6,794 |
|
1,246 |
|
- |
|
(62 |
) |
(0 |
) |
7,978 |
|
Data processing equipment |
6,822 |
|
869 |
|
- |
|
(57 |
) |
(10 |
) |
7,624 |
|
Other telecommunications peripherals |
267 |
|
55 |
|
- |
|
- |
|
0 |
|
322 |
|
Office equipment |
564 |
|
109 |
|
- |
|
(5 |
) |
(9 |
) |
659 |
|
Vehicles |
68 |
|
46 |
|
- |
|
(2 |
) |
1 |
|
113 |
|
Other equipment |
100 |
|
2 |
|
- |
|
- |
|
(5 |
) |
97 |
|
Assets under finance lease |
|
|
|
|
|
|
|
|
|
|
|
|
Transmission installation and equipment |
1,345 |
|
632 |
|
- |
|
(296 |
) |
- |
|
1,681 |
|
Data processing equipment |
83 |
|
17 |
|
- |
|
(21 |
) |
- |
|
79 |
|
Office equipment |
2 |
|
3 |
|
- |
|
(1 |
) |
2 |
|
6 |
|
Vehicles |
1 |
|
4 |
|
- |
|
- |
|
- |
|
5 |
|
CPE asets |
13 |
|
2 |
|
- |
|
- |
|
- |
|
15 |
|
RSA assets |
294 |
|
130 |
|
- |
|
- |
|
(207 |
) |
217 |
|
Total |
101,362 |
|
15,633 |
|
805 |
|
(2,418 |
) |
(473 |
) |
114,909 |
|
Net Book Value |
86,761 |
|
|
|
|
|
|
|
|
|
94,809 |
|
55
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
a. Gain on disposal or sale of property and equipment
|
September 30, 2015 |
|
September 30, 2014 |
|
Proceeds from sale of property and equipment |
312 |
|
154 |
|
Net book value |
(25 |
) |
(51 |
) |
Gain on disposal or sale of property and equipment |
287 |
|
103 |
|
b. Assets impairment
As of December 31, 2014, the CGUs that independently generate cash inflows were fixed wireline, fixed wireless, cellular and others.
In 2014, the Group decided to cease its fixed wireless business no later than December 14, 2015. The Company assessed the recoverable amount to be Rp549 billion as of December 31, 2014 and determined that the assets for fixed wireless CGU were further impaired by Rp805 billion. The recoverable amount has been determined based on VIU calculation using the most recent cash flows projection approved by management. The cash flows projection included cash inflows from the continuing use of the assets during the remaining service period and projected net cash flows to be received for the disposal of the assets for fixed wireless CGU at the end of service period. Projected net cash flows to be received for the disposal of the assets was determined based on cost approach, adjusted for physical, technological and economic obsolescence. Management applied a pre-tax discount rate of 13.5% derived from the Company’s post-tax weighted average cost of capital and benchmarked to externally available data. In addition, management also applied technological and economic obsolescence rate of 30% based on the Company’s internal data, due to the lack of comparable market data because of the nature of the assets. The determination of VIU calculation is most sensitive to technological and economic obsolescence rate assumption. An increase in technological and economic obsolescence rate to 40% would result in a further impairment of Rp70 billion.
Since the Company has decided to restructure its fixed wireless business (Note 39.e.ii), the Company accelerate its fixed wireless business’s assets. As of September 30, 2015, fixed wireless assets has been fully depreciated amounting to Rp545 billion.
Loss on impairment of assets was recognized within “Depreciation and Amortization” in the consolidated statement of profit or loss and other comprehensive income.
Management believes that there is no indication of impairment in the assets of other CGUs as of December 31, 2014.
56
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
c. Others
(i) Interest capitalized to property under construction amounted to Rp302 billion and Rp251 billion for the nine months period ended September 30, 2015 and for the year ended December 31, 2014, respectively. The capitalization rate used to determine the amount of borrowing costs eligible for capitalization ranged from 9.74% to 18.31% and from 10.14% to 18.31% for the nine months period ended September 30, 2015 and for the year ended December 31, 2014, respectively.
(ii) No foreign exchange loss was capitalized as part of property under construction for the nine months period ended September 30, 2015 and for the year ended December 31, 2014.
(iii) For the nine months period ended September 30, 2015 and 2014, the Group received the proceeds from the insurance claim on the lost and broken property and equipment, with a total value of Rp88 billion and Rp158 billion, respectively. The proceeds were recorded as part of “Other Income” in the consolidated statement of profit or loss and other comprehensive income. As of September 30, 2015 and 2014, the net carrying value of those assets of Rp14 billion and Rp34 billion, respectively, were charged to the consolidated statement of profit or loss and other comprehensive income.
(iv) In 2012, Telkomsel decided to replace certain equipment units with net carrying amount of Rp1,037 billion, as part of a modernization program. Accordingly, Telkomsel changed the estimated useful lives of such equipment. The impact is an additional depreciation expense amounting to Rp70 billion for 2014.
(v) In 2012, the useful lives of Telkomsel’s towers were changed from 10 years to 20 years to reflect their current economic useful lives. The impact is a reduction of depreciation expense by Rp352 billion for the nine months period ended September 30, 2015 and 2014.
The impact of the change in the estimated useful lives of the towers in future periods is to increase the profit before income tax as follows:
Years |
|
Amount |
|
2015 (3 months) |
|
352 |
|
2016 |
|
301 |
|
2017 |
|
92 |
|
In 2014, the useful lives of Telkomsel’s buildings and transmissions were changed from 20 years to 40 years, and from 10 years to 15 and 20 years, to reflect their current economic useful lives. The impact is a reduction of depreciation expense by Rp198 billion for the nine months period ended September 30, 2015.
The impact of the change in the estimated useful lives of the buildings and transmissions in future periods is to increase the profit before income tax as follows:
Years |
|
Amount |
|
2015 (3 months) |
|
198 |
|
2016 |
|
244 |
|
2017 |
|
198 |
|
2018 |
|
135 |
|
57
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(vi) Exchange of property and equipment
· In 2012 and 2010, the Company entered into a Procurement and Installation Agreement for the Modernization of the Copper Cable Network through Optimization of Asset Copper Cable Network through Trade In/Trade Off method with PT Len Industri (“LEN”) and PT Industri Telekomunikasi Indonesia (“INTI”), respectively.
In 2015 and 2014, the Company derecognized the copper cable network asset with net carrying value of Rp1.9 billion and Rp1.8 billion, respectively, and recorded the fiber optic network asset from the exchange transaction of Rp384 billion and Rp435 billion.
· For the period ended December 31, 2014, Telkomsel’s equipment with net carrying amount of Rp41 billion will be exchanged with equipment from NSN Oy and PT Huawei, therefore, these equipment units were presented as assets held for sale in the consolidated statement of financial positions, and under personal segment (Note 37).
· 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.
(viii) As of September 30, 2015, the Group’s property and equipment except land rights, with net carrying amount of Rp87,529 billion were insured against fire, theft, earthquake and other specified risks, including business interruption, under blanket policies totalling Rp14,158 billion, US$74.03 million, HKD18.71 million and SGD28.92 million. Management believes that the insurance coverage is adequate to cover potential losses from the insured risks.
(ix) As of September 30, 2015, the percentage of completion of property under construction was around 84% of the total contract value, with estimated dates of completion between October 2015 and December 2017. The balance of property under construction mainly consists of buildings, transmission installation and equipment, cable network and power supply. Management believes that there is no impediment to the completion of the construction in progress.
(x) All assets owned by the Company have been pledged as collateral for bonds (Note 19a). Certain property and equipment of the Company’s subsidiaries with gross carrying value amounting to Rp8,203 billion have been pledged as collateral under lending agreements (Notes 16 and 20).
(xi) As of September 30, 2015 the cost of fully depreciated property and equipment of the Group that are still used in operations amounted to Rp63,917 billion. The Group is currently performing modernization of network assets to replace the fully depreciated property and equipment.
(xii) In 2014, the total fair values of land rights and buildings of the Group, which are determined based on the sale value of the tax object (“Nilai Jual Objek Pajak” or “NJOP”) of the related land rights and buildings, amounted to Rp19,412 billion.
58
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(xiii) The Company and Telkomsel entered into several tower providers to lease spaces in telecommunication towers (slot) and sites of the towers 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 Group also has lease commitments for property and equipment 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 lease are as follows:
Year |
September 30, 2015 |
|
December 31, 2014 |
|
2015 |
1,011 |
|
975 |
|
2016 |
253 |
|
927 |
|
2017 |
971 |
|
898 |
|
2018 |
904 |
|
830 |
|
2019 |
803 |
|
758 |
|
Thereafter |
2,339 |
|
2,147 |
|
Total minimum lease payments |
6,281 |
|
6,535 |
|
Interest |
(1,587 |
) |
(1,746 |
) |
Net present value of minimum lease payments |
4,694 |
|
4,789 |
|
Current maturities (Note 17a) |
(611 |
) |
(571 |
) |
Long-term portion (Note 17b) |
4,083 |
|
4,218 |
|
Details of obligation under finance lease as of September 30, 2015 and December 31, 2014 are as follows:
|
September 30, 2015 |
|
December 31, 2014 |
|
PT Tower Bersama Infrastructure, Tbk |
1,611 |
|
1,713 |
|
PT Profesional Telekomunikasi Indonesia |
1,498 |
|
1,596 |
|
PT Solusi Tunas Pratama |
348 |
|
368 |
|
PT Putra Arga Binangun |
233 |
|
244 |
|
PT Bali Towerindo Sentra |
135 |
|
143 |
|
PT Naragita Dinamika Komunika |
91 |
|
109 |
|
Others (each below Rp100 billion) |
778 |
|
616 |
|
Total |
4,694 |
|
4,789 |
|
59
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
11. ADVANCES AND OTHER NON-CURRENT ASSETS
Advances and other non-current assets as of September 30, 2015 and December 31, 2014 consist of:
|
September 30, 2015 |
|
December 31, 2014 |
|
Advances for purchase of property and equipment |
3,687 |
|
3,354 |
|
Prepaid rental - net of current portion (Note 8) |
2,161 |
|
1,587 |
|
Deferred charges |
451 |
|
484 |
|
Frequency license - net of current portion (Note 8) |
429 |
|
493 |
|
Long-term trade receivables - net of current portion (Note 6) |
328 |
|
362 |
|
Restricted cash |
110 |
|
112 |
|
Security deposit |
96 |
|
72 |
|
Others |
9 |
|
15 |
|
Total |
7,271 |
|
6,479 |
|
Prepaid rental covers rent of leased line and telecommunication equipment and land and building under lease agreements of the Group with rental periods ranging from 1 to 40 years.
As of September 30, 2015 and December 31, 2014, deferred charges represent deferred Revenue-Sharing Arrangement (“RSA”) charges and deferred Indefeasible Right of Use (“IRU”) Agreement charges. Total amortization of deferred charges for the years ended September 30, 2015 and December 31, 2014 amounted to Rp35 billion and Rp86 billion, respectively.
Long-term trade receivables are measured at amortized cost using the effective interest rate method payable in installments over 4 years, and arose from providing telecommunication access and services in rural areas (USO) (Note 39c.iv).
Refer to Note 36 for details of related party transactions.
12. INTANGIBLE ASSETS
(i) The details of intangible assets are as follows:
|
Goodwill |
|
Software |
|
License |
|
Other Intangible assets |
|
Total |
|
Gross carrying amount: |
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2014 |
322 |
|
4,771 |
|
67 |
|
572 |
|
5,732 |
|
Additions |
- |
|
994 |
|
- |
|
9 |
|
1,003 |
|
Reclassifications/translations |
- |
|
21 |
|
- |
|
- |
|
21 |
|
Balance, September 30, 2015 |
322 |
|
5,786 |
|
67 |
|
581 |
|
6,756 |
|
Accumulated amortization and impairment losses: |
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2014 |
(29 |
) |
(2,862 |
) |
(43 |
) |
(335 |
) |
(3,269 |
) |
Amortization |
- |
|
(617 |
) |
(4 |
) |
(19 |
) |
(640 |
) |
Reclassification/translation |
- |
|
(15 |
) |
- |
|
(4 |
) |
(19 |
) |
Balance, September 30, 2015 |
(29 |
) |
(3,494 |
) |
(47 |
) |
(358 |
) |
(3,928 |
) |
Net Book Value |
293 |
|
2,292 |
|
20 |
|
223 |
|
2,828 |
|
60
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
12. INTANGIBLE ASSETS
(i) The details of intangible assets are as follows:
|
Goodwill |
|
Software |
|
License |
|
Other Intangible assets |
|
Total |
|
Gross carrying amount: |
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2013 |
270 |
|
3,432 |
|
67 |
|
401 |
|
4,170 |
|
Additions |
- |
|
1,340 |
|
0 |
|
107 |
|
1,447 |
|
Acquisition (Note 3) |
54 |
|
- |
|
- |
|
78 |
|
132 |
|
Deductions |
- |
|
(0 |
) |
- |
|
(13 |
) |
(13 |
) |
Reclassifications/translations |
(2 |
) |
(1 |
) |
- |
|
(1 |
) |
(4 |
) |
Balance, December 31, 2014 |
322 |
|
4,771 |
|
67 |
|
572 |
|
5,732 |
|
|
Goodwill |
|
Software |
|
License |
|
Other intangible assets |
|
Total |
|
Accumulated amortization and impairment losses: |
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2013 |
(29 |
) |
(2,278 |
) |
(37 |
) |
(318 |
) |
(2,662 |
) |
Amortization |
- |
|
(583 |
) |
(6 |
) |
(30 |
) |
(619 |
) |
Deductions |
- |
|
- |
|
- |
|
13 |
|
13 |
|
Reclassification/translation |
- |
|
(1 |
) |
- |
|
- |
|
(1 |
) |
Balance, December 31, 2014 |
(29 |
) |
(2,862 |
) |
(43 |
) |
(335 |
) |
(3,269 |
) |
Net Book Value |
293 |
|
1,909 |
|
24 |
|
237 |
|
2,463 |
|
(ii) Goodwill resulted from acquisition of CCA in 2014 (Note 3), sales-purchase transaction of Data Center Business between Sigma and BDM in 2012, and from the acquisitions of Ad Medika in 2010 and Sigma in 2008.
(iii) The remaining amortization periods of software range from 0 to 17 years.
(iv) As of September 30, 2015 the cost of fully amortized intangible assets that are still used in operations amounted to Rp2,251 billion.
13. TRADE PAYABLES
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Related parties |
|
|
|
|
Purchase of equipment, materials and services |
916 |
|
723 |
|
Payables to other telecommunications providers |
279 |
|
174 |
|
Sub-total |
1,195 |
|
897 |
|
Third parties |
|
|
|
|
Purchase of equipment, materials and services |
8,453 |
|
9,471 |
|
Radio frequency usage charges, concession fees and Universal Service Obligation charges |
1,468 |
|
1,160 |
|
Payables to other telecommunications providers |
727 |
|
834 |
|
Sub-total |
10,648 |
|
11,465 |
|
Total |
11,843 |
|
12,362 |
|
61
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
13. TRADE PAYABLES (continued)
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Rupiah |
9,263 |
|
9,479 |
|
U.S. dollar |
2,511 |
|
2,837 |
|
Others |
69 |
|
46 |
|
Total |
11,843 |
|
12,362 |
|
Refer to Note 36 for details of related party transactions.
14. ACCRUED EXPENSES
|
September 30, 2015 |
|
December 31, 2014 |
|
Operations, maintenance and telecommunications services |
5,081 |
|
2,640 |
|
Salaries and benefits |
1,275 |
|
1,091 |
|
General, administrative and marketing expenses |
1,524 |
|
1,291 |
|
Interest and bank charges |
248 |
|
189 |
|
Total |
8,128 |
|
5,211 |
|
Refer to Note 36 for details of related party transactions.
15. UNEARNED INCOME
|
September 30, 2015 |
|
December 31, 2014 |
|
Prepaid pulse reload vouchers |
2,928 |
|
3,588 |
|
Other telecommunications services |
165 |
|
78 |
|
Others |
396 |
|
297 |
|
Total |
3,485 |
|
3,963 |
|
16. SHORT-TERM BANK LOANS
|
|
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
|
|
|
Outstanding |
|
Outstanding |
|
||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Citibank N.A |
|
US$ |
|
- |
|
- |
|
100 |
|
1,244 |
|
Bank CIMB Niaga |
|
Rp |
|
- |
|
174 |
|
- |
|
234 |
|
SCB |
|
Rp |
|
- |
|
91 |
|
- |
|
- |
|
UOB |
|
Rp |
|
- |
|
65 |
|
- |
|
200 |
|
Others |
|
Rp |
|
- |
|
97 |
|
- |
|
132 |
|
Total |
|
|
|
|
|
427 |
|
|
|
1,810 |
|
Refer to Note 36 for details of related party transactions.
62
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. SHORT-TERM BANK LOANS (continued)
Other significant information relating to short-term bank loans as at September 30, 2015 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 a |
|
Balebat |
|
Rp |
|
12 |
|
October 18, 2015 |
|
Monthly |
|
13.00% |
|
Property and equipment (Note 10), Inventories (Note 7) and trade receivables (Note 6) |
|
April 29, 2008 a |
|
Balebat |
|
Rp |
|
10 |
|
October 18, 2015 |
|
Monthly |
|
13.00% |
|
Property and equipment (Note 10), Inventories (Note 7) and trade receivables (Note 6) |
|
March 21, 2013 b |
|
Infomedia |
|
Rp |
|
38 |
|
October 18, 2015 |
|
Monthly |
|
12.00% |
|
Trade receivables(Note 6) |
|
March 25, 2013 b |
|
Infomedia |
|
Rp |
|
38 |
|
October 18, 2015 |
|
Monthly |
|
12.00% |
|
Trade receivables(Note 6) |
|
March 27, 2013 b |
|
Infomedia |
|
Rp |
|
24 |
|
October 18, 2015 |
|
Monthly |
|
12.00% |
|
Trade receivables(Note 6) |
|
April 28, 2013 c |
|
GSD |
|
Rp |
|
85 |
|
November 11, 2015 |
|
Monthly |
|
11.50% |
|
Property and equipment (Note 10) |
|
September 22, 2014 |
|
Balebat |
|
Rp |
|
25 |
|
October 31, 2015 |
|
Monthly |
|
14.00% |
|
Property and equipment (Note 10), Inventories (Note 7) and trade receivables (Note 6) |
|
September 22, 2014 |
|
Balebat |
|
Rp |
|
5 |
|
October 18, 2015 |
|
Monthly |
|
13.00% |
|
Property and equipment (Note 10), Inventories (Note 7) and trade receivables (Note 6) |
|
October 29, 2014 |
|
Infomedia Solusi Humanika |
|
Rp |
|
50 |
|
October 29, 2015 |
|
Monthly |
|
12.00% |
|
Trade receivables(Note 6) |
|
SCB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 30, 2015 |
|
GSD |
|
Rp |
|
100 |
|
December 26, 2015 |
|
Quarterly |
|
10.50% |
|
None |
|
UOB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 22, 2013 |
|
Infomedia |
|
Rp |
|
200 |
|
November 22, 2015 |
|
Monthly |
|
12.00% |
|
Trade receivables(Note 6) |
|
The credit facilities obtained by the Company’s subsidiaries are used for working capital purposes.
a Based on the latest amendment on September 22, 2014
b Based on the latest amendment on October 16, 2014
c Based on the latest amendment on November 11, 2014
63
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
17. CURRENT MATURITIES OF LONG-TERM LIABILITIES
a. Current maturities
|
Notes |
|
September 30, 2015 |
|
December 31, 2014 |
|
Bank loans |
20 |
|
3,686 |
|
4,052 |
|
Obligations under finance leases |
19 |
|
611 |
|
571 |
|
Two-step loans |
10 |
|
232 |
|
207 |
|
Bonds and notes |
18 |
|
53 |
|
1,069 |
|
Total |
|
|
4,582 |
|
5,899 |
|
Refer to Note 36 for details of related party transactions.
b. Long-term portion
Scheduled principal payments as of June 30, 2015 are as follows:
|
|
|
|
|
Year |
|
||||||||
|
Notes |
|
Total |
|
2016 |
|
2017 |
|
2018 |
|
2019 |
|
Thereafter |
|
Bank loans |
20 |
|
14,956 |
|
1,010 |
|
2,784 |
|
7,632 |
|
1,213 |
|
2,317 |
|
Bonds and notes |
19 |
|
9,507 |
|
8 |
|
32 |
|
31 |
|
251 |
|
9,185 |
|
Obligations under finance leases |
10 |
|
4,083 |
|
162 |
|
647 |
|
644 |
|
600 |
|
2,030 |
|
Two-step loans |
18 |
|
1,442 |
|
83 |
|
235 |
|
212 |
|
193 |
|
719 |
|
Total |
|
|
29,988 |
|
1,263 |
|
3,698 |
|
8,519 |
|
2,257 |
|
14,251 |
|
18. TWO-STEP LOANS
Two-step loans are unsecured loans obtained by the Government which are then re-loaned to the Company. The loans obtained up to July 1994 are payable in rupiah based on the exchange rate at the date of drawdown. Loans obtained after July 1994 are payable in their original currencies and any resulting foreign exchange gain or loss is borne by the Company.
|
|
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
|
|
|
Outstanding |
|
Outstanding |
|
||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Overseas banks |
|
Yen |
|
7,295 |
|
889 |
|
7,679 |
|
796 |
|
|
|
US$ |
|
26 |
|
386 |
|
31 |
|
381 |
|
|
|
Rp |
|
- |
|
399 |
|
- |
|
438 |
|
Total |
|
|
|
|
|
1,674 |
|
|
|
1,615 |
|
Current maturities (Note 17a) |
|
|
|
|
|
(232 |
) |
|
|
(207 |
) |
Long-term portion (Note 17b) |
|
|
|
|
|
1,442 |
|
|
|
1,408 |
|
64
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
18. TWO-STEP LOANS (continued)
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 |
|
8.57% |
|
|
|
Yen |
|
Semi-annually |
|
Semi-annually |
|
3.10% |
|
The loans were intended for the development of telecommunications infrastructure and supporting telecommunications equipment. The loans are due on various dates through 2024.
The Company had used all facilities under the two-step loans program since 2008.
Under the loan covenants, 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 the ADB.
As of September 30, 2015, the Company has complied with the above-mentioned ratios.
Refer to Note 36 for details of related party transactions.
19. BONDS AND NOTES
|
|
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
|
|
|
Outstanding |
|
Outstanding |
|
||||
Bonds and notes |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Bonds |
|
|
|
|
|
|
|
|
|
|
|
2010: |
|
|
|
|
|
|
|
|
|
|
|
Series A |
|
Rp |
|
- |
|
- |
|
- |
|
1,005 |
|
Series B |
|
Rp |
|
- |
|
1,995 |
|
- |
|
1,995 |
|
2015: |
|
|
|
|
|
|
|
|
|
|
|
Series A |
|
Rp |
|
- |
|
2,200 |
|
- |
|
- |
|
Series B |
|
Rp |
|
- |
|
2,100 |
|
- |
|
- |
|
Series C |
|
Rp |
|
- |
|
1,200 |
|
- |
|
- |
|
Series D |
|
Rp |
|
- |
|
1,500 |
|
- |
|
- |
|
Medium Term Notes (“MTN”) |
|
|
|
|
|
|
|
|
|
|
|
GSD |
|
|
|
|
|
|
|
|
|
|
|
Series A |
|
Rp |
|
- |
|
220 |
|
- |
|
220 |
|
Series B |
|
Rp |
|
- |
|
120 |
|
- |
|
- |
|
Finnet |
|
Rp |
|
- |
|
200 |
|
- |
|
- |
|
Promissory Notes |
|
|
|
|
|
|
|
|
|
|
|
PT Huawei |
|
US$ |
|
1 |
|
20 |
|
4 |
|
52 |
|
PT ZTE Indonesia (“ZTE”) |
|
US$ |
|
1 |
|
20 |
|
3 |
|
36 |
|
Total |
|
|
|
|
|
9,575 |
|
|
|
3,308 |
|
Unamortized debt issuance cost |
|
|
|
|
|
(15 |
) |
|
|
- |
|
|
|
|
|
|
|
9,560 |
|
|
|
3,308 |
|
Current maturities (Note 17a) |
|
|
|
|
|
(53 |
) |
|
|
(1,069 |
) |
Long-term portion (Note 17b) |
|
|
|
|
|
9,507 |
|
|
|
2,239 |
|
65
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
19. BONDS AND NOTES (continued)
a. Bonds
(i) 2010
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 PT Bahana Securities (“Bahana”), PT Danareksa Sekuritas and PT Mandiri Sekuritas and the trustee is PT CIMB Niaga Tbk.
The Company received the proceeds from the issuance of bonds on July 6, 2010.
The funds received from the public offering of bonds net of issuance costs, were used to finance capital expenditures 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 to optimize legacy and supporting facilities (fixed wireline and wireless).
As of September 30, 2015, the rating of the bonds issued by PT Pemeringkat Efek Indonesia (Pefindo) is idAAA (stable outlook).
Based on the 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 September 30, 2015, the Company has complied with the above mentioned ratios.
a. Bonds
(ii) 2015
Bonds |
|
Principal |
|
Issuer |
|
Listed on |
|
Issuance date |
|
Maturity date |
|
Payment period |
|
Rate per annum |
|
Series A |
|
2,200 |
|
The Company |
|
IDX |
|
June 16, 2015 |
|
June 23, 2022 |
|
Quarterly |
|
9.93% |
|
Series B |
|
2,100 |
|
The Company |
|
IDX |
|
June 16, 2015 |
|
June 23, 2025 |
|
Quarterly |
|
10.25% |
|
Series C |
|
1,200 |
|
The Company |
|
IDX |
|
June 16, 2015 |
|
June 23, 2030 |
|
Quarterly |
|
10.60% |
|
Series D |
|
1,500 |
|
The Company |
|
IDX |
|
June 16, 2015 |
|
June 23, 2045 |
|
Quarterly |
|
11.00% |
|
Total |
|
7,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The bonds are secured by all of the Company’s assets, movable or non-movable, either existing or in the future.
66
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
19. BONDS AND NOTES (continued)
a. Bonds (continued)
(i) 2015 (continued)
As of June 30, 2015, the rating of the bonds issued by PT Pemeringkat Efek Indonesia (Pefindo) is idAAA (stable outlook).
Based on the 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%.
The bonds are secured by all of the Company’s assets, movable or non-movable, either existing or in the future.
The underwriters of the bonds are PT Bahana Securities (“Bahana”), PT Danareksa Sekuritas and Mandiri Sekuritas and PT Trimegah Sekuritas, and the trustee is PT Bank Permata Tbk.
The Company received the proceeds from the issuance of bonds on June 23, 2015.
The funds received from the public offering of bonds net of issuance costs, were used to finance capital expenditures which consisted of wave broadband, backbone, metro network, regional metro junction, information technology application, support, and merger and acquisition.
Based on the 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 4:1.
3. Debt service coverage is 125%.
As of September 30, 2015, the Company has complied with the above mentioned ratios.
b. MTN
(i) GSD
Notes |
|
Currency |
|
Principal |
|
Issuance date |
|
Maturity date |
|
Interest payment period |
|
Interest rate per annum |
|
GSD-Series A |
|
Rp |
|
220 |
|
November 14, 2014 |
|
November 14, 2019 |
|
Semi-annually |
|
11% |
|
GSD-Series B |
|
Rp |
|
120 |
|
March 6, 2015 |
|
March 6, 2020 |
|
Semi-annually |
|
11% |
|
Based on Agreement of Issuance and Appointment of Monitoring and Insurance Agents of Medium Term Notes (MTN) PT Graha Sarana Duta year 2014 dated November 13, 2014 as covered by notarial deed No. 30 of Arry Supratno, S.H., GSD will issue MTN with the principle amount up to Rp500 billion in series.
PT Mandiri Sekuritas act as the Arranger, Bank Mandiri as the Monitoring and Insurance Agent, and KSEI as Custodian. The Funds obtained from MTN are used for investment projects.
Trade receivables, inventories, land and building related with investment development funded by MTN that has owned or will be owned by GSD, have been pledged as collateral for MTN (Notes 6, 7 and 10).
Under to the agreement, GSD is required to comply with all covenants or restrictions including maintaining financial ratios as follows:
1. Debt to equity ratio should not exceed 6.5:1
2. EBITDA to interest ratio should not be less than 1.2:1
3. Minimum current ratio is 120%
4. Maximum leverage ratio is 450%
As of September 30, 2015, GSD has complied with the above mentioned ratios.
67
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
19. BONDS AND NOTES (continued)
b. MTN
(ii) Finnet
Notes |
|
Currency |
|
Principal |
|
Issuance date |
|
Maturity date |
|
Interest payment period |
|
Interest rate per annum |
|
MTN I Finnet 2015 |
|
Rp |
|
200 |
|
July 1, 2015 |
|
July 1, 2022 |
|
Quarterlyly |
|
11% |
|
Based on Agreement of Debt Acknowledgement of Medium Term Notes (MTN) I Finnet year 2015 dated June 30, 2015 as covered by notarial deed No. 47 of Utiek R. Abdurrachman,SH., MLI., MKn., Finnet will issue MTN through private placement with the principle amount up to Rp200 billion.
PT BNI Asset Management was acting as arranger on the MTN, PT Bank Mega Tbk was acting as trustee and PT Kustodian Sentra Efek Indonesia (KSEI) was acting as payment agent and collective custodian.
The funds obtained from MTN are used to Finnet’s working capital related to Modern Channel Project as Telkomsel’s billing payment aggregator.
The MTN received A (Ind) rating from PT Fitch Rating Indonesia. The MTN is not secured by any collateral nor guaranteed by any party.
Under to the agreement, Finnet is required to comply with all covenants or restrictions including maintaining financial ratios as follows:
1. Debt to equity ratio should not exceed 3.5:1
2. EBITDA to interest ratio should not be less than 2.5:1
As of September 30, 2015, Finnet has complied with the above mentioned ratios.
c. Promissory Notes
Supplier |
|
Currency |
|
Principal (in billions) |
|
Issuance date |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
PT Huawei |
|
US$ |
|
0.3 |
|
June 19, 2009 |
|
Semi-annually |
|
Semi-annually |
|
6 month LIBOR+1,5% |
|
|
|
|
|
0.2 |
|
April 30, 2013 |
|
(November 25, 2015 -July 30, 2016) |
|
|
|
|
|
ZTE |
|
US$ |
|
0.1 |
|
August 20, 2009 a |
|
Semi-annually (December 15, 2015 - February 4, 2017) |
|
Semi-annually |
|
6 month LIBOR+1.5% |
|
|
|
|
|
0.6 |
|
|
|
|
|
|
|
|
|
abased on the latest amendment on August 15, 2011
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 each of ZTE and PT Huawei are vendor financing facilities with no collateral covering 85% of Hand-over Report (“Berita Acara Serah Terima”) projects with ZTE and PT Huawei.
68
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS
|
|
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
|
|
|
Outstanding |
|
Outstanding |
|
||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
BNI |
|
Rp |
|
- |
|
6,028 |
|
- |
|
2,195 |
|
The Bank of Tokyo-Mitsubishi-UFJ, Ltd. |
|
Rp |
|
- |
|
1,745 |
|
- |
|
600 |
|
|
|
US$ |
|
75 |
|
1,099 |
|
- |
|
- |
|
BRI |
|
Rp |
|
- |
|
2,521 |
|
- |
|
3,398 |
|
|
|
US$ |
|
0 |
|
3 |
|
1 |
|
6 |
|
Bank Mandiri |
|
Rp |
|
- |
|
2,375 |
|
- |
|
1,750 |
|
Syndication of banks |
|
Rp |
|
- |
|
2,050 |
|
- |
|
2,200 |
|
Bank ANZ Indonesia |
|
Rp |
|
- |
|
90 |
|
- |
|
- |
|
|
|
US$ |
|
75 |
|
1,099 |
|
- |
|
- |
|
Bank CIMB Niaga |
|
Rp |
|
- |
|
709 |
|
- |
|
567 |
|
ABN Amro Bank N.V. Stockholm (“AAB Stockholm”) and SCB |
|
US$ |
|
26 |
|
382 |
|
38 |
|
478 |
|
Japan Bank for International Cooperation (“JBIC”) |
|
US$ |
|
22 |
|
322 |
|
34 |
|
424 |
|
Bank Sumitomo Mitsui Indonesia |
|
Rp |
|
- |
|
145 |
|
- |
|
- |
|
BCA |
|
Rp |
|
- |
|
131 |
|
- |
|
373 |
|
Others |
|
Rp |
|
|
|
19 |
|
- |
|
10 |
|
Total |
|
|
|
|
|
18,718 |
|
|
|
12,001 |
|
Unamortized debt issuance cost |
|
|
|
|
|
(76 |
) |
|
|
(71 |
) |
|
|
|
|
|
|
18,642 |
|
|
|
11,930 |
|
Current maturities (Note 17a) |
|
|
|
|
|
(3,686 |
) |
|
|
(4,052 |
) |
Long-term portion (Note 17a) |
|
|
|
|
|
14,956 |
|
|
|
7,878 |
|
Refer to Note 36 for details of related party transactions.
|
|
Borrower |
|
Currency |
|
Total facility (in billions) |
|
Current period payment (in billions) |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
BNI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 13, 2010a |
|
The Company |
|
Rp |
|
1,000 |
|
142.9 |
|
Semi-annually (2013-2015) |
|
Quarterly |
|
3 months JIBOR+1.25% |
|
None |
|
December 23, 2011 a |
|
PINS |
|
Rp |
|
500 |
|
42.9 |
|
Semi-annually (2013-2016) |
|
Quarterly |
|
3 months JIBOR+1.50% |
|
Inventories (Note 7) and trade receivables (Note 6) |
|
November 28, 2012a |
|
Metra |
|
Rp |
|
44 |
|
31.2 |
|
Semi-annually (2015-2017) |
|
Monthly |
|
10.00% |
|
Property and equipment (Note 10) and trade receivables (Note 6) |
|
March 26, 2013a |
|
Metra |
|
Rp |
|
60 |
|
15 |
|
Quarterly (2013-2016) |
|
Monthly |
|
10.00% |
|
Property and equipment (Note 10) and trade receivables (Note 6) |
|
November 20, 2013 |
|
The Company |
|
Rp |
|
1,500 |
|
187.5 |
|
Semi-annually (2015-2018) |
|
Quarterly |
|
3 months JIBOR+2.65% |
|
None |
|
November 25, 2013a |
|
Metra |
|
Rp |
|
90 |
|
22.5 |
|
Quarterly (2013-2016) |
|
Monthly |
|
10.00% |
|
Property and equipment (Note 10) and trade receivables (Note 6) |
|
69
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
Other significant information relating to bank loans as of September 30, 2015 is as follows:
|
|
Borrower |
|
Currency |
|
Total facility (in billions) |
|
Current period payment (in billions) |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
BNI (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 10, 2014a |
|
Sigma |
|
Rp |
|
247 |
|
- |
|
Monthly (2016-2022) |
|
Monthly |
|
1 months JIBOR+3.35% |
|
Property and equipment (Note 10) and trade receivables (Note 6) |
|
July 21, 2014a |
|
Metra |
|
Rp |
|
40 |
|
13.3 |
|
Semi-annually (2013-2015) |
|
Monthly |
|
10.00% |
|
Property and equipment (Note 10) and trade receivables (Note 6) |
|
November 3, 2014a,i |
|
Telkom Infratel |
|
Rp |
|
450 |
|
40.2 |
|
Quarterly (2015-2018) |
|
Monthly |
|
1 month JIBOR+3.35% |
|
Trade receivables (Note 6) |
|
March 13, 2015 a&j |
|
The Company |
|
Rp |
|
2,900 |
|
- |
|
Semi-annually (2016-2022) |
|
Quarterly |
|
3 months JIBOR+2.5% |
|
None |
|
March 13, 2015 a&j |
|
GSD |
|
Rp |
|
100 |
|
- |
|
Semi-annually (2016-2022) |
|
Quarterly |
|
3 months JIBOR+2.5% |
|
None |
|
April 8, 2015 a |
|
Telkomsel |
|
Rp |
|
1,000 |
|
- |
|
April 14, 2018 |
|
Quarterly |
|
3 months JIBOR+1.95% |
|
None |
|
The Bank of Tokyo – Mitsubishi UFJ, Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 9, 2014 |
|
Dayamitra |
|
Rp |
|
600 |
|
- |
|
Quarterly (2016-2019) |
|
Quarterly |
|
3 months JIBOR+2.4% |
|
Property and equipment (Note 10) and trade receivables (Note 6) |
|
March 13, 2015 a&j |
|
Metra |
|
Rp |
|
75 |
|
- |
|
Quarterly (2016-2020) |
|
Quarterly |
|
3 months JIBOR+2.15% |
|
None |
|
March 13, 2015 a&j |
|
Infomedia |
|
Rp |
|
70 |
|
- |
|
Quarterly (2016-2020) |
|
Quarterly |
|
3 months JIBOR+2.15% |
|
None |
|
April 8, 2015 a |
|
Telkomsel |
|
Rp |
|
1,000 |
|
- |
|
April 14, 2018 |
|
Quarterly |
|
3 months JIBOR+1.95% |
|
None |
|
April 8, 2015 a |
|
Telkomsel |
|
US$ |
|
0.075 |
|
- |
|
April 14, 2018 |
|
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 |
|
200 |
|
Semi-annually (2011-2017) |
|
Quarterly |
|
3 months JIBOR+1.40% and 3 months JIBOR+3.50% |
|
Property and equipment (Note 10) |
|
April 26, 2013 |
|
GSD |
|
Rp |
|
141 |
|
28.1 |
|
Monthly (2014-2018) |
|
Monthly |
|
10.00% |
|
Property and equipment (Note 10) and lease agreement |
|
70
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
Other significant information relating to bank loans as of September 30, 2015 is as follows (continued):
|
|
Borrower |
|
Currency |
|
Total facility (in billions) |
|
Current period payment (in billions) |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
BRI (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 30, 2013 |
|
GSD |
|
Rp |
|
70 |
|
2.9 |
|
Monthly (2014-2021) |
|
Monthly |
|
10.00% |
|
Property and equipment (Note 10) and trade receivables (Note 6) and lease agreement |
|
October 30, 2013 |
|
GSD |
|
Rp |
|
34 |
|
2.7 |
|
Monthly (2014-2021) |
|
Monthly |
|
10.00% |
|
Property and equipment (Note 10) and trade receivables (Note 6) and lease agreement |
|
November 20, 2013 |
|
The Company |
|
Rp |
|
1500 |
|
187.5 |
|
Semi-annually (2015-2018) |
|
Quarterly |
|
3 months JIBOR+2.65% |
|
None |
|
October 1, 2014 |
|
Patrakom |
|
Rp |
|
28 |
|
10.4 |
|
Monthly (2014-2016) |
|
Monthly |
|
10.95% |
|
Property and equipment (Note 10) and trade receivables (Note 6) |
|
October 1, 2014 |
|
Patrakom |
|
US$ |
|
0.0007 |
|
0.0003 |
|
Monthly (2014-2015) |
|
Monthly |
|
6.00% |
|
Property and equipment (Note 10) and trade receivables (Note 6) |
|
October 1, 2014 |
|
Patrakom |
|
Rp |
|
93 |
|
- |
|
Monthly (2014-2017) |
|
Monthly |
|
10.95% |
|
Property and equipment (Note 10) and trade receivables (Note 6) |
|
Bank Mandiri |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 9, 2009b and July 5, 2010b |
|
Telkomsel |
|
Rp |
|
5,000 |
|
250 |
|
Semi-annualy (2009-2016) |
|
Quarterly |
|
3 months JIBOR+1.00% |
|
None |
|
November 20, 2013 |
|
The Company |
|
Rp |
|
1,500 |
|
187,5 |
|
Semi-annualy (2015-2018) |
|
Quarterly |
|
3 months JIBOR+2.65% |
|
None |
|
August 11, 2014 |
|
Graha Yasa Selaras |
|
Rp |
|
77 |
|
- |
|
Monthly (2016-2021) |
|
Monthly |
|
3 months JIBOR+3.25% |
|
Property and equipment (Note 10) |
|
August 11, 2014 |
|
Graha Yasa Selaras |
|
Rp |
|
77 |
|
- |
|
Monthly (2016-2021) |
|
Monthly |
|
3 months JIBOR+3.25% |
|
Property and equipment (Note 10) |
|
April 8, 2015 |
|
Telkomsel |
|
Rp |
|
1,000 |
|
- |
|
April 14, 2018 |
|
Quarterly |
|
3 months JIBOR+1.95% |
|
None |
|
Syndication of banks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Desember 19, 2012 (BNI, BRI and Bank Mandiri)a |
|
Dayamitra |
|
Rp |
|
2,500 |
|
150 |
|
Semi-annualy (2014-2020) |
|
Quarterly |
|
3 months JIBOR+3.00% |
|
Property and equipment (Note 10) and trade receivables (Note 6) |
|
71
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
Other significant information relating to bank loans as of September 30, 2015 is as follows (continued):
|
Borrower |
|
Currency |
|
Total facility (in billions) |
|
Current period payment (in billions) |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
Bank ANZ Indonesia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marc 13, 2015a&j |
GSD |
|
Rp |
|
90 |
|
- |
|
June 13, 2020 |
|
Quarterly |
|
3 Months JIBOR+2.00% |
|
None |
|
April 8, 2015a |
Telkomsel |
|
US$ |
|
0.075 |
|
- |
|
April 14, 2018 |
|
Quarterly |
|
3 Months JIBOR+1.20% |
|
None |
|
Bank CIMB Niaga |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 21, 2007e |
GSD |
|
Rp |
|
21 |
|
3.5 |
|
Quarterly (2007-2015) |
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10) |
|
May 24, 2010f,h |
Balebat |
|
Rp |
|
2 |
|
0.3 |
|
Monthly (2010-2015) |
|
Monthly |
|
13.00% |
|
Property and equipment (Note 10), Inventories (Note 7), and trade receivables (Note 6) |
|
March 31, 2011 |
GSD |
|
Rp |
|
24 |
|
2.1 |
|
Monthly (2011-2020) |
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10) and lease agreement |
|
March 31, 2011 |
GSD |
|
Rp |
|
13 |
|
1.3 |
|
Monthly (2011-2019) |
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10) and lease agreement |
|
March 31, 2011 |
GSD |
|
Rp |
|
12 |
|
1.4 |
|
Monthly (2011-2016) |
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10) and lease agreement |
|
September 9, 2011 |
GSD |
|
Rp |
|
41 |
|
2.9 |
|
Monthly (2011-2021) |
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10) and lease agreement |
|
September 9, 2011 |
GSD |
|
Rp |
|
11 |
|
0.8 |
|
Monthly (2011-2015) |
|
Monthly |
|
9.75% |
|
Property and equipment (Note 10) and lease agreement |
|
August 2, 2012f,h |
Balebat |
|
Rp |
|
4 |
|
1 |
|
Monthly (2012-2015) |
|
Monthly |
|
13.00% |
|
Property and equipment (Note 10), Inventories (Note 7), and trade receivables (Note 6) |
|
September 20, 2012a |
TLT |
|
Rp |
|
1,150 |
|
- |
|
Monthly (2015-2030) |
|
Monthly |
|
3 months JIBOR+3.45% |
|
Property and equipment (Note 10) |
|
72
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
Other significant information relating to bank loans as of September 30, 2015 is as follows (continued):
|
Borrower |
|
Currency |
|
Total facility (in billions) |
|
Current period payment (in billions) |
|
Payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
Bank CIMB Niaga (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 20, 2012a |
TLT |
|
Rp |
|
118 |
|
- |
|
Monthly (2015-2030) |
|
Monthly |
|
9.00% |
|
Property and equipment (Note 10) |
|
October 10, 2012f,h |
Balebat |
|
Rp |
|
1 |
|
0.3 |
|
Monthly (2012-2015) |
|
Monthly |
|
13.00% |
|
Property and equipment (Note 10), Inventories (Note 7), and trade receivables (Note 6) |
|
August 26, 2013f,h |
Balebat |
|
Rp |
|
3.5 |
|
0.5 |
|
Monthly (2013-2018) |
|
Monthly |
|
13.00% |
|
Property and equipment (Note 10), Inventories (Note 7), and trade receivables (Note 6) |
|
AAB Stockholm and SCB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30, 2009b&c |
Telkomsel |
|
US$ |
|
0.3 |
|
0.01 |
|
Semi-annually (2011-2016) |
|
Semi-annually |
|
6 months LIBOR+0.82% |
|
None |
|
JIBC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 26, 2010a&d |
The Company |
|
US$ |
|
0.06 |
|
0.006 |
|
Semi-annually (2010-2015) |
|
Semi-annually |
|
4.56% |
|
None |
|
March 28, 2013a&g |
The Company |
|
US$ |
|
0.03 |
|
0.006 |
|
Semi-annually (2014-2019) |
|
Semi-annually |
|
2.18% and 6 months LIBOR+1.20% |
|
None |
|
Bank Sumitomo Mitsui Indonesia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 13, 2015a&j |
Metra |
|
Rp |
|
75 |
|
- |
|
Quarterly (2016-2020) |
|
Quarterly |
|
3 months JIBOR+2.15% |
|
None |
|
March 13, 2015a&j |
Infomedia |
|
Rp |
|
70 |
|
- |
|
Quarterly (2016-2020) |
|
Quarterly |
|
3 months JIBOR+2.15% |
|
None |
|
BCA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 9, 2009b and July 5, 2010b |
Telkomsel |
|
Rp |
|
4,000 |
|
222.2 |
|
Semi-annually (2009-2016) |
|
Quarterly |
|
3 months JIBOR+1.00% |
|
None |
|
December 16, 2010a |
TII |
|
Rp |
|
200 |
|
20 |
|
Semi-annually (2011-2015) |
|
Quarterly |
|
3 months JIBOR+1.25% |
|
None |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The credit facilities obtained by the Group are used for working capital purposes.
73
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
a As stated in the agreements, the Group is required to comply with all covenants or restrictions such as dividend distribution, obtaining new loans, including maintaining financial ratios. As of September 30, 2015, the Group has complied with all covenants as restrictions.
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 September 30, 2015, Telkomsel has complied with the above covenants.
c 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”), and 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 on the unused facility by US$3 million through a cash refund.
d 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.
e Based on the latest amendment on March 31, 2011
f Based on the latest amendment on September 22, 2014
g In connection with the agreement with NEC Corporation Consortium and TE SubCom, the Company entered into a loan agreement with JBIC, for the procurement of goods and services from NEC Corporation Consortium and TE SubCom for the Southeast Asia Japan Cable System project. The facilities consist of facility A and facility B amounting to US$18.8 million and US$12.5 million, respectively
h MD Media’s subsidiary
i Based on the latest amendment on July 13, 2015
j On March 13, 2015, Company, GSD Metra and Infomedia signed several credit facilities agreements with PT Bank Sumitomo Mitsui Indonesia, The Bank of Tokyo – Mitsubishi UFJ, Ltd., PT Bank ANZ Indonesia and a syndication of banks (BCA and BNI) amounting to Rp750 billion, Rp750 billion Rp500 billion and Rp3.000 billion, respectively.
21. NON-CONTROLLING INTERESTS
|
September 30, 2015 |
|
December 31, 2014 |
|
Non-controlling interests in net assets of subsidiaries: |
|
|
|
|
Telkomsel |
16,026 |
|
18,067 |
|
GSD |
149 |
|
125 |
|
Metra |
65 |
|
89 |
|
TII |
54 |
|
42 |
|
Total |
16,294 |
|
18,323 |
|
|
September 30, 2015 |
|
September 30, 2014 |
|
Non-controlling interests in total profit or loss and other comprehensive income of subsidiaries: |
|
|
|
|
Telkomsel |
5,768 |
|
4,821 |
|
GSD |
15 |
|
(5 |
) |
TII |
13 |
|
- |
|
Metra |
(4 |
) |
17 |
|
Total |
5,792 |
|
4,833 |
|
74
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
21. NON-CONTROLLING INTERESTS
Material partly-owned subsidiary
As of September 30, 2015 and December 31, 2014, the non-controlling interest holds 35% ownership interest in Telkomsel (Note 1d) which is considered material to the Company.
The summarized financial information of Telkomsel is provided below. This information is based on amounts before inter-group eliminations.
Summarized statements of financial position
|
September 30, 2015 |
|
December 31, 2014 |
|
Current assets |
24,287 |
|
19,767 |
|
Non-current assets |
58,568 |
|
58,887 |
|
Current liabilities |
(31,739 |
) |
(18,573 |
) |
Non-current liabilities |
(5,324 |
) |
(8,457 |
) |
Total equity |
45,792 |
|
51,624 |
|
Attributable to: |
|
|
|
|
Equity holders of parent company |
29,766 |
|
33,557 |
|
Non-controlling interest |
16,026 |
|
18,067 |
|
Summarized statements of profit or loss and other comprehensive income
|
September 30, 2015 |
|
September 30, 2014 |
|
Revenues |
55,625 |
|
48,407 |
|
Operating expenses |
(33,679 |
) |
(30,138 |
) |
Other income |
(17 |
) |
26 |
|
Profit before tax |
21,929 |
|
18,295 |
|
Income tax expense - net |
(5,447 |
) |
(4,519 |
) |
Profit for the year from continuing operations |
16,482 |
|
13,776 |
|
Other comprehensive income - net |
- |
|
- |
|
Net comprehensive income |
16,482 |
|
13,776 |
|
Attributable to non-controlling interest |
5,768 |
|
4,821 |
|
Dividend paid to non-controlling interest |
6,112 |
|
5,464 |
|
Summarized statements of cash flows
|
September 30, 2015 |
|
September 30, 2014, |
|
Operating activities |
28,095 |
|
23,442 |
|
Investing activities |
(9,643 |
) |
(4,208 |
) |
Financing activities |
(14,279 |
) |
(14,366 |
) |
Net increase in cash and cash equivalents |
(4,173 |
) |
4,868 |
|
75
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
22. CAPITAL STOCK
|
September 30, 2015 |
|
||||
Description |
Number of shares |
|
Percentage of ownership |
|
Total paid-up capital |
|
Series A Dwiwarna share |
|
|
|
|
|
|
Government |
1 |
|
0 |
|
0 |
|
Series B shares |
|
|
|
|
|
|
Government |
51,602,353,559 |
|
52.56 |
|
2,580 |
|
The Bank of New York Mellon Corporation* |
9,057,829,980 |
|
9.23 |
|
453 |
|
Directors (Note 1b): |
|
|
|
|
|
|
Alex J Sinaga |
540 |
|
0 |
|
0 |
|
Indra Utoyo |
27,540 |
|
0 |
|
0 |
|
Honesti Basyir |
540 |
|
0 |
|
0 |
|
Dian Rachmawan |
60,540 |
|
0 |
|
0 |
|
Public (individually less than 5%) |
37,515,580,900 |
|
38.21 |
|
1,876 |
|
Total |
98,175,853,600 |
|
100.00 |
|
4,909 |
|
Treasury stock (Note 24) |
2,624,142,800 |
|
- |
|
131 |
|
Total |
100,799,996,400 |
|
100.00 |
|
5,040 |
|
|
December 31, 2014 |
|
||||
Description |
Number of shares |
|
Percentage of ownership |
|
Total paid-up capital |
|
Series A Dwiwarna share |
|
|
|
|
|
|
Government |
1 |
|
0 |
|
0 |
|
Series B shares |
|
|
|
|
|
|
Government |
51,602,353,559 |
|
52.56 |
|
2,580 |
|
The Bank of New York Mellon Corporation* |
9,472,920,180 |
|
9.65 |
|
474 |
|
Directors (Note 1b): |
|
|
|
|
|
|
Indra Utoyo |
27,540 |
|
0 |
|
0 |
|
Honesti Basyir |
540 |
|
0 |
|
0 |
|
Dian Rachmawan |
60,540 |
|
0 |
|
0 |
|
Public (individually less than 5%) |
37,100,491,240 |
|
37.79 |
|
1,855 |
|
Total |
98,175,853,600 |
|
100.00 |
|
4,909 |
|
Treasury stock (Note 24) |
2,624,142,800 |
|
- |
|
131 |
|
Total |
100,799,996,400 |
|
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 from the Boards of Commissioners and Directors, issuance of new shares, and amendments of the Company’s Articles of Association.
76
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
23. ADDITIONAL PAID-IN CAPITAL
|
September 30, 2015 |
|
December 31, 2014 |
|
Proceeds from sale of 933,333,000 shares in excess of par value through IPO in 1995 |
1,446 |
|
1,446 |
|
Excess of value over cost of selling 215,000,000 shares under the treasury stock plan phase II (Note 24) |
576 |
|
576 |
|
Excess of value over cost of selling 211,290,500 shares under the treasury stock plan phase I (Note 24) |
544 |
|
544 |
|
Difference in value arising from restructuring transactions and other transactions between entities under common control (Note 2d) |
478 |
|
478 |
|
Excess of value over cost of treasury stock transferred to employee stock ownership program (Note 24) |
228 |
|
228 |
|
Capitalization into 746,666,640 Series B shares in 1999 |
(373 |
) |
(373 |
) |
Net |
2,899 |
|
2,899 |
|
Difference in value arising from restructuring transactions and other transactions of entities under common control amounting 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 September 30, 2015 and December 31, 2014, the accumulated development of the related infrastructure amounted to Rp537 billion, respectively.
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 |
|
Movements in treasury stock as a result of the repurchase of shares are as follows:
|
September 30, 2015 |
|
December 31, 2014 |
|
||||||||
|
Number of shares |
|
% |
|
Rp |
|
Number of shares |
|
% |
|
Rp |
|
Beginning balance |
2,624,142,800 |
|
2.60 |
|
3,836 |
|
3,699,142,800 |
|
3.67 |
|
5,805 |
|
Proceeds from sale of treasury stock |
- |
|
- |
|
- |
|
(1,075,000,000 |
) |
(1.07 |
) |
(1,969 |
) |
Ending balance |
2,624,142,800 |
|
2.60 |
|
3,836 |
|
2,624,142,800 |
|
2.60 |
|
3,836 |
|
77
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
24. TREASURY STOCK (continued)
Pursuant to the AGM of Stockholders of the Company held on June 11, 2010, the stockholders approved the change in the Company’s plan for treasury stock phase I, II, and III to become (i) for reissuance inside or outside stock exchange, (ii) for retirement of the stock by deducting from equity, (iii) for equity stock conversion and (iv) for funding purposes.
Pursuant to the AGM of Stockholders of the Company held on May 19, 2011, the stockholders approved to execute the repurchase plan for treasury stock phase IV.
In 2012, the Company bought back 237,270,500 shares (equal to 1,186,352,500 shares after stock split) from the public (part of stock repurchase program phase IV) for Rp 1,744 billion.
In the AGM on April 19, 2013, the Company's stockholders approved the change to the plan for the treasury stock phase III, which was decided to be used for the implementation of the Employee Stock Ownership Program (“ESOP”) for the year 2013.
On July 30, 2013, the Company resold 211,290,500 shares (equal to 1,056,452,500 shares after stock split) of treasury stock phase I with fair value amounting to Rp2,368 billion (net of related costs to sell the shares). The excess amounting to Rp544 billion in value of the treasury shares sold over their acquisition cost was recorded as additional paid-in capital (Note 23).
On June 13, 2014, the Company resold 215,000,000 shares (equal to 1,075,000,000 shares after stock split) of treasury stock phase II with fair value amounting to Rp2,541 billion (net of related cost to sell the shares). The excess amounting to Rp576 billion in value of the treasury stock sold over their acquisition cost was recorded as additional paid-in capital (Note 23).
25. REVENUES
|
2015 |
|
2014 |
|
Telephone revenues |
|
|
|
|
Cellular |
|
|
|
|
Usage charges |
26,367 |
|
24,073 |
|
Features |
761 |
|
561 |
|
Monthly subscription charges |
324 |
|
439 |
|
|
27,452 |
|
25,073 |
|
Fixed lines |
|
|
|
|
Usage charges |
3,466 |
|
4,221 |
|
Monthly subscription charges |
2,171 |
|
2,072 |
|
Call center |
813 |
|
473 |
|
Others |
72 |
|
76 |
|
|
6,522 |
|
6,842 |
|
Total telephone revenues |
33,974 |
|
31,915 |
|
Interconnection revenues |
|
|
|
|
Domestic interconnection |
1,990 |
|
2,192 |
|
International interconnection |
1,403 |
|
1,340 |
|
Total interconnection revenues |
3,393 |
|
3,532 |
|
78
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
25. REVENUES (continued)
|
2015 |
|
2014 |
|
Data, internet, and information technology service revenues |
|
|
|
|
Internet, data communication and information technology services |
23,369 |
|
17,308 |
|
Short Messaging Services (“SMS”) |
11,154 |
|
10,319 |
|
E-business |
86 |
|
105 |
|
Voice over Internet Protocol (“VoIP”) |
19 |
|
19 |
|
Total data, internet, and information technology service revenues |
34,628 |
|
27,751 |
|
Network revenues |
|
|
|
|
Leased lines |
429 |
|
491 |
|
Satellite transponder lease |
423 |
|
348 |
|
Total network revenues |
852 |
|
839 |
|
Other telecommunications service revenues |
|
|
|
|
Customer Premise Equipment (“CPE”) and terminal |
1.180 |
|
252 |
|
Leases |
604 |
|
609 |
|
Pay TV |
227 |
|
69 |
|
E-health revenue |
143 |
|
120 |
|
Directory assistance |
104 |
|
196 |
|
USO Compensation |
20 |
|
139 |
|
Others |
594 |
|
419 |
|
Total other telecommunications service revenues |
2,872 |
|
1,804 |
|
Total revenues |
75,719 |
|
65,841 |
|
The details of net revenues received by the Group from agency relationships for the nine months period ended September 30, 2015 and 2014 are as follows:
|
2015 |
|
2014 |
|
Gross revenues |
23,886 |
|
17,601 |
|
Compensation to value added service providers |
(517 |
) |
(293 |
) |
Net revenues |
23,369 |
|
17,308 |
|
Refer to Note 36 for details of related party transactions.
79
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. PERSONNEL EXPENSES
The breakdown of personnel expenses is as follows:
|
2015 |
|
2014 |
|
Salaries and related benefits |
2,952 |
|
2,739 |
|
Vacation pay, incentives and other benefits |
3,257 |
|
2,554 |
|
Employees’ income tax |
1,277 |
|
1,050 |
|
Early retirement program |
699 |
|
- |
|
Net periodic pension costs (Note 33) |
406 |
|
416 |
|
Net periodic post-retirement health care benefit costs (Note 35) |
183 |
|
224 |
|
Housing |
161 |
|
167 |
|
Insurance |
103 |
|
76 |
|
LSA expenses (Note 34) |
67 |
|
47 |
|
Other employee benefit (Note 33) |
38 |
|
24 |
|
Other post-retirement benefit costs (Note 33) |
35 |
|
36 |
|
Others |
29 |
|
65 |
|
Total |
9,207 |
|
7,398 |
|
Refer to Note 36 for details of related party transactions.
27. OPERATIONS, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES
The breakdown of operations, maintanance and telecommunication service expeses is as follows:
|
2015 |
|
2014 |
|
Operations and maintenance |
12,247 |
|
9,765 |
|
Radio frequency usage charges (Notes 39c.i and 39c.ii) |
2,640 |
|
2,392 |
|
Concession fees and Universal Service Obligation charges |
1,584 |
|
1,375 |
|
Cost of phone, set top box, SIM and RUIM cards |
1,450 |
|
459 |
|
Leased lines and CPE |
978 |
|
539 |
|
Electricity, gas and water |
728 |
|
827 |
|
Cost of IT services |
711 |
|
279 |
|
Vehicles rental and supporting facilities |
504 |
|
438 |
|
Insurance |
234 |
|
249 |
|
Management project |
126 |
|
123 |
|
Others (each below Rp75 billion) |
93 |
|
318 |
|
Total |
21,295 |
|
16,764 |
|
Refer to Note 36 for details of related party transactions.
80
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
28. GENERAL AND ADMINISTRATIVE EXPENSES
The breakdown of general and administrative expeses is as follows:
|
2015 |
|
2014 |
|
Provision for impairment of receivables (Note 6d) |
948 |
|
375 |
|
General expenses |
814 |
|
608 |
|
Collection expenses |
321 |
|
78 |
|
Training, education and recruitment |
288 |
|
374 |
|
Travelling |
239 |
|
254 |
|
Professional fees |
237 |
|
220 |
|
Meeting |
111 |
|
126 |
|
Others (each below Rp75 billion) |
315 |
|
355 |
|
Total |
3,273 |
|
2,390 |
|
Refer to Note 36 for details of related party transactions.
29. INTERCONNECTION EXPENSES
The breakdown of interconnection expeses is as follows:
|
2015 |
|
2014 |
|
Domestic interconnection and access |
1,814 |
|
2,796 |
|
International interconnection |
886 |
|
884 |
|
Total |
2,700 |
|
3,680 |
|
Refer to Note 36 for details of related party transactions.
30. TAXATION
a. Claims for tax refund
|
September 30, 2015 |
|
December 31, 2014 |
|
The Company |
|
|
|
|
Value added tax (“VAT”) |
298 |
|
298 |
|
Corporate income tax |
424 |
|
60 |
|
Subsidiaries |
|
|
|
|
Corporate income tax |
193 |
|
363 |
|
Value tax added (“VAT”) |
3 |
|
305 |
|
Income tax |
|
|
|
|
Article 23 - Withholding tax on service delivery |
- |
|
10 |
|
Total claims for tax refund |
918 |
|
1,036 |
|
Short-term portion |
(66 |
) |
(291 |
) |
Long-term portion |
852 |
|
745 |
|
81
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
b. Prepaid taxes
|
September 30, 2015 |
|
December 31, 2014 |
|
Subsidiaries |
|
|
|
|
Corporate income tax |
72 |
|
28 |
|
VAT |
1,367 |
|
835 |
|
Income tax |
|
|
|
|
Article 22 - Withholding tax on goods delivery and imports |
2 |
|
- |
|
Article 23 - Withholding tax on service delivery |
72 |
|
27 |
|
|
1,513 |
|
890 |
|
c. Taxes payable
|
September 30, 2015 |
|
December 31, 2014 |
|
The Company |
|
|
|
|
Income taxes |
|
|
|
|
Article 4 (2) - Final tax |
15 |
|
27 |
|
Article 21 - Individual income tax |
46 |
|
25 |
|
Article 22 - Withholding tax on goods delivery and imports |
1 |
|
2 |
|
Article 23 - Withholding tax on service delivery |
20 |
|
10 |
|
Article 25 - Installment of corporate income tax |
- |
|
61 |
|
Article 26 - Withholding tax on non-resident income |
2 |
|
2 |
|
VAT |
|
|
|
|
VAT |
124 |
|
197 |
|
VAT – Tax collector |
178 |
|
257 |
|
|
386 |
|
581 |
|
Subsidiaries |
|
|
|
|
Income taxes |
|
|
|
|
Article 4 (2) - Final tax |
48 |
|
81 |
|
Article 21 - Individual income tax |
103 |
|
97 |
|
Article 22 - Withholding tax on goods delivery and imports |
2 |
|
- |
|
Article 23 - Withholding tax on service delivery |
93 |
|
72 |
|
Article 25 - Installment of corporate income tax |
567 |
|
483 |
|
Article 26 - Withholding tax on non-resident income |
176 |
|
28 |
|
Article 29 - Corporate income tax |
1,279 |
|
957 |
|
VAT |
548 |
|
77 |
|
|
2,816 |
|
1,795 |
|
|
3,202 |
|
2,376 |
|
82
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows:
|
September 30, 2015 |
|
September 30, 2014 (Restated) |
|
Current |
|
|
|
|
The Company |
128 |
|
708 |
|
Subsidiaries |
6,029 |
|
4,797 |
|
|
6,157 |
|
5,505 |
|
Deferred |
|
|
|
|
The Company |
(6 |
) |
(25 |
) |
Subsidiaries |
(168 |
) |
(49 |
) |
|
(174 |
) |
(74 |
) |
|
5,983 |
|
5,431 |
|
The reconciliation between the income tax expense calculated by applying the applicable tax rate of 20% to the profit before income tax less income subject to final tax, and the net income tax expense as shown in the consolidated Statement of profit or loss and other comprehensive income is as follows:
|
September 30, 2015 |
|
September 30, 2014 (Restated) |
|
Profit before income tax |
23,320 |
|
21,532 |
|
Less income subject to final tax |
(1,433 |
) |
(1,246 |
) |
|
21,887 |
|
20,286 |
|
Tax calculated at the Company’s applicable statutory tax rate of 20% |
4,377 |
|
4,057 |
|
Difference in applicable statutory tax rate for subsidiaries |
1,122 |
|
951 |
|
Non-deductible expenses |
235 |
|
345 |
|
Final income tax expenses |
134 |
|
72 |
|
Others |
115 |
|
6 |
|
Net income tax expense |
5,983 |
|
5,431 |
|
83
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows: (continued)
The reconciliation between the profit before income tax and the estimated taxable income of the Company for the year ended September 30, 2015 and 2014 is as follows:
|
September 30, 2015 |
|
September 30, 2014 (Restated) |
|
Profit before income tax |
23,320 |
|
21,532 |
|
Add back consolidation eliminations |
11,462 |
|
9,487 |
|
Consolidated profit before income tax and eliminations |
34,782 |
|
31,019 |
|
Less: profit before income tax of the subsidiaries |
(22,813 |
) |
(18,823 |
) |
Profit before income tax attributable to the Company |
11,969 |
|
12,196 |
|
Less: income subject to final tax |
(531 |
) |
(507 |
) |
|
11,438 |
|
11,689 |
|
Temporary differences: |
|
|
|
|
Finance lease |
252 |
|
(8 |
) |
Net periodic pension and other post-retirement benefits costs |
116 |
|
220 |
|
Provision for impairment of assets |
- |
|
190 |
|
Provision for impairment and |
(211 |
) |
(183 |
) |
Depreciation and gain on sale of property and equipment trade receiveables written off |
(209 |
) |
270 |
|
Deferred installation fee |
(25 |
) |
- |
|
Provision for personnel expenses |
(5 |
) |
(350 |
) |
Other provisions |
(107 |
) |
2 |
|
Net temporary differences |
(189 |
) |
141 |
|
Permanent differences: |
|
|
|
|
Net periodic post-retirement health care benefit costs |
183 |
|
223 |
|
Employee benefits |
149 |
|
161 |
|
Donations |
116 |
|
167 |
|
Equity in net income of associates and subsidiaries |
(11,482 |
) |
(9,496 |
) |
Others |
108 |
|
297 |
|
Net permanent differences |
(10,926 |
) |
(8,648 |
) |
Taxable income of the Company |
323 |
|
3,182 |
|
Current corporate income tax expense |
64 |
|
636 |
|
Final income tax expense |
64 |
|
72 |
|
Total current income tax expense of the Company |
128 |
|
708 |
|
Current income tax expense of the subsidiaries |
6,029 |
|
4,797 |
|
Total current income tax expense |
6,157 |
|
5,505 |
|
84
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows: (continued)
Tax Law No. 36/2008 which is futher regulated in Government Regulation No. 77/2013 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 owns 40% or more of the total fully paid and traded shares, and such shares are owned by at least 300 parties, with each party owning less than 5% of the total paid-up shares. These requirements must be met by a company for a period of 183 days in one tax year. The Company has met all of the required criteria; therefore, for the purpose of calculating income tax expense and liabilities for the financial reporting periods ended September 30, 2015 and 2014, the Company has reduced the applicable tax rate by 5%.
The Company applied the tax rate of 20% for the nine months period ended September 30, 2015 and 2014. The subsidiaries applied a tax rate of 25% for the nine months period ended September 30, 2015 and 2014.
e. Tax assessment
(i) The Company
In November 2013, the Company received Tax Underpayment Assesment Letters (“SKPKBs”) No. 00056/207/07/093/13 to No.00065/207/07/093/13 dated November 15, 2013, for the underpayment of VAT for the period January - September and November 2007 amounting to Rp142 billion. On January 20, 2014, the Company filed its objection to the Tax Authorities. The Company has received the rejection of its objection through The Directorate General of Taxation (“DGT”) decision letter No. 2498 to 2504 and 2541 to 2543/WPJ.19/2014 dated December 16 and 18, 2014, respectively. The Company accepted the assessment on the underpayment of VAT amounting to Rp22 billion (including penalty of Rp10 billion). The accepted portion was charged to the 2014 consolidated statement of profit or loss and other comprehensive income. The Company has filed an appeal against the refusal of objections VAT Interconnection No. Tel. 59 / KU000 / COP-10000000/2015 to No. Tel. 59 / KU000 / COP-10000000/2015 dated March 12, 2015.
In November 2014, the Company received SKPKBs as the result of tax audit for fiscal year 2011 from the Tax Authorities. Based on the letters, the Company received VATUnderpayment assesment for the tax period January until December 2011 amounting to Rp182.5 billion (including penalty Rp60 billion) and corporate income tax underpayment assesment amounting to Rp2.8 billion (including penalty of Rp929 million). The Company has paid the underpayment. The accepted portion on the underpayment VAT. amounting to Rp4.7 billion (including penalty of Rp2 billion) was charged to the 2014 consolidated statement of profit or loss and other comprehensive income and the portion of VAT Interconnection amounting to Rp178 billion (including penalty of Rp58 billion) recognized as tax refund underpayment. The Company filed an objection VAT interconnection transactions in 2011 on January 7, 2015 No. Tel. 03 / KU000 / COP-10000000/2015 to No. Tel. 14 / KU000 / COP-10000000/2015 to the Tax Authority.
(ii) Telkomsel
On April 21, 2010, the Tax Authorities filed a judicial review request to the Indonesian Supreme Court (“SC”) for the Tax Court’s acceptance of Telkomsel’s request to cancel the Tax Collection Letter (STP) for the underpayment of December 2008 Income Tax Article 25 amounting to Rp429 billion (including a penalty of Rp8 billion). In May 2010, Telkomsel filed a contra-appeal to the SC. As of the date of approval and authorization for issuance of these consolidated financial statements, the judicial review is still in process
85
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
e. Tax assessment (continued)
(ii) Telkomsel
On August 10, 2010, the Tax Authorities filed a judicial review request to the SC for the Tax Court’s acceptance of Telkomsel’s appeal on 2004 and 2005 assesment for VAT totaling Rp215 billion. In September 2010, Telkomsel filed a contra-appeal to the SC. Based on its verdict which was received in June 2014, the SC decided to reject the request from the Tax Authorities. The SC verdict is legally binding in favour of Telkomsel.
In May and June 2012, Telkomsel received the refund of penalty of 2010 Income Tax Article 25 underpayment amounting to Rp15.7 billion based on the Tax Court’s verdict. On July 17, 2012, the Tax Authorities filed a judicial review request to the SC on the Tax Court’s verdict. On September 14, 2012, Telkomsel filed a contra-appeal to the SC. As of the date of approval and authorization for issuance of these consolidated financial statements, the judicial review is still in process.
On March 12, 2012, Telkomsel received assessment letters as a result of a tax audit for the fiscal year 2010 by the Tax Authorities. Based on the letters, Telkomsel overpaid corporate income tax and underpaid VAT amounting to Rp597.4 billion and Rp302.7 billion (including penalty of Rp73.3 billion), respectively. Telkomsel accepted the assessment on the overpayment of corporate income tax and Rp12.1 billion of the underpayment of the VAT (including penalty of Rp6.3 billion). The accepted portion was charged to the 2012 consolidated Statement of profit or loss and other comprehensive income. On April 5, 2012, Telkomsel received a refund for the overpayment of corporate income tax for fiscal year 2010 amounting to Rp294.7 billion, net of underpayment of VAT. On May 24, 2012, Telkomsel filed an objection to the Tax Authorities for the underpayment of VAT of Rp290.6 billion (including penalty of Rp67 billion) and recorded it as a claim for tax refund. On May 1, 2013, the Tax Authorities rejected Telkomsel’s objection. Subsequently, on July 29, 2013, Telkomsel filed an appeal to the Tax Court. On March 16, 2015, the Tax court received the appeal of 2010 VAT totaling Rp290.6 billion. On May 13, 2015, Telkomsel received VAT refunds Rp290.7 billion (net of Tax Collection Letter Rp3,837 million). In May 2015, Telkomsel requested to cancel the Tax Collection Letter to the Tax Authority. As of the date of approval and authorization for issuance of these consolidated financial statement, the appeal is still in progress, and those amount recorded as a part of tax refund.
In December 2013, the Tax Court accepted Telkomsel’s appeal on 2006 VAT and withholding taxes totaling Rp116 billion. In February 2014, Telkomsel received the refund.
On January 22, 2014, Telkomsel received a formal verdict from the Tax Court concerning the former’s claim for tax refund for import duties. Based on its verdict, Tax Court accepted the portion of Telkomsel’s claim. In February 2014, Telkomsel submitted a request to refund the accepted portion of the claim amounting to Rp8.5 billion. On September 30, 2014, Telkomsel received a partial refund of the claim for import duties amounting to Rp587 million (including penalty Rp579 million). Subsequently, on October 2, 2014, Telkomsel received a refund for VAT and income tax article 22 amounting to Rp7.92 billion.
86
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
e. Tax assessment (continued)
(ii) Telkomsel
On November 7, 2014, Telkomsel received assessment letters as a result of a tax audit for the fiscal year 2011 by the Tax Authorities. Based on the letters, Telkomsel underpaid the corporate income tax, value added tax and withholding tax amounting to Rp257.8 billion, Rp2.9 billion and Rp2.2 billion (including penalty of Rp85.3 billion), respectively. Telkomsel accepted the assessment of Rp7.8 billion of the underpayment of corporate income tax, Rp1 billion of the underpayment of the value added tax and Rp2.2 billion of the underpayment of the withholding tax (including penalty of Rp3.5 billion). The accepted portion was charged to the 2014 statement of profit and loss and other comprehensive income. In December 2014, Telkomsel paid the underpayments. In December 2014 and February 2015, Telkomsel filed an objection to the Tax Authorities for the underpayment of corporate income tax of Rp250 billion (including penalty of Rp81.1 billion) and value added tax of Rp1.9 billion (including penalty of Rp670 million), respectively. The underpayments were recorded as part of a claim for tax refund. As of the date of approval and authorization for issuance of these financial statements, the objection on the corporate income tax assessment is still in process.
On July 3, 2015, in response to Telkomsel’s letter for claiming interest income related to VAT and Withholding Tax for fiscal year 2006, Tax Authorities informed that Telkomsel's claim will not be proceeded since the Tax Authorities filed a judicial review to supreme court. As of the date of the report, Telkomsel has not received a formal letter from Tax Court for the judicial review.
In August 2015, Telkomsel received the letter from the Tax Authorities which notified that the Tax Authorities has confirmed that tower should be classified as building and depreciated for 20 years. This letter is based on specific tax ruling on fiscal depreciation of tower issued in July 2015. Subsequently, part of claim for tax refund has been reclassified for principal portion to deferred tax liabilities and penalty charged to profit and loss amounting to Rp125 billion and Rp60 billion, respectively.
In accordance with tax regulation, in September 2015 Telkomsel revised the fiscal depreciation calculation of tower and filed the revised Corporate Income Tax Return for fiscal year 2012, 2013, and 2014. As the impact of the revised, Telkomsel reclassified the deferred tax liabilities to current tax payable and paid the underpayment of Corporate Income Tax amounting to Rp174 billion. Subsequently, on September 11, 2015, The Indonesian Tax Authorities issued Tax Collection Letters (“STPs”) amounting to Rp67 billion for Corporate Income Tax late payment penalty of 2012 to 2014. On September 21, 2015, Telkomsel filed the request for cancellation of such STPs to Tax Authority based on prevailing tax reinventing policy. As of the date of approval and authorization for issuance of these financial statements, the request is still in process.
87
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
f. Deferred tax assets and liabilities (continued)
The details of the Group's deferred tax assets and liabilities are as follows:
|
December 31, 2014 (Restated) |
|
(Charged) credited to the consolidated statements of profit or loss |
|
Reclassification |
|
September 30, 2015 |
|
The Company |
|
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
Provision for impairment of receivables |
470 |
|
(41 |
) |
- |
|
429 |
|
Net periodic pension and other post-retirement benefits costs |
330 |
|
22 |
|
- |
|
352 |
|
Accrued expenses and provision for inventory obsolescence |
76 |
|
(19 |
) |
- |
|
57 |
|
Employee benefit provisions |
72 |
|
(1 |
) |
- |
|
71 |
|
Deferred installation fee |
72 |
|
(5 |
) |
- |
|
67 |
|
Finance leases |
22 |
|
51 |
|
- |
|
73 |
|
Total deferred tax assets |
1,042 |
|
7 |
|
- |
|
1,049 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
Difference between accounting and tax bases of property and equipment |
(1.458 |
) |
2 |
|
- |
|
(1,456 |
) |
Valuation of long-term investment |
(69 |
) |
- |
|
- |
|
(69 |
) |
Land rights, intangible assets, and others |
(14 |
) |
(3 |
) |
- |
|
(17 |
) |
Total deferred tax liabilities |
(1,541 |
) |
(1 |
) |
- |
|
(1,542 |
) |
Deferred tax liabilities of the Company - net |
(499 |
) |
6 |
|
- |
|
(493 |
) |
Telkomsel |
|
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
Provisions for employee benefits |
274 |
|
36 |
|
- |
|
310 |
|
Provision for impairment of receivables |
129 |
|
42 |
|
- |
|
171 |
|
Recognition of interest under USO arrangements |
0 |
|
0 |
|
- |
|
0 |
|
Total deferred tax assets |
403 |
|
78 |
|
- |
|
481 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
Difference between accounting and tax bases of property and equipment |
(2,044 |
) |
209 |
|
299 |
|
(1,536 |
) |
Finance leases |
(254 |
) |
(95 |
) |
- |
|
(349 |
) |
Intangible assets |
(61 |
) |
7 |
|
- |
|
(54 |
) |
Total deferred tax liabilities |
(2,359 |
) |
121 |
|
299 |
|
(1,939 |
) |
Deferred tax liabilities of Telkomsel - net |
(1,956 |
) |
199 |
|
299 |
|
(1,458 |
) |
Deferred tax liabilities of other subsidiaries - net |
(248 |
) |
(17 |
) |
- |
|
(265 |
) |
Deferred tax liabilities - net |
(2,703 |
) |
188 |
|
299 |
|
(2,216 |
) |
Deferred tax assets - net |
95 |
|
42 |
|
- |
|
137 |
|
|
Desember 31, 2013 (Restated) |
|
(Charged) credit to the consolidated statement of profit or loss |
|
(Charged) credit to the other comprehensive Income |
|
December 31, 2014 |
|
The Company |
|
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
Provision for impairment of receivables |
446 |
|
24 |
|
- |
|
470 |
|
Net periodic pension and other post-retirement benefits costs |
341 |
|
74 |
|
(85 |
) |
330 |
|
Accrued expenses and provision for inventory obsolescence |
27 |
|
49 |
|
- |
|
76 |
|
Employee benefit provisions |
143 |
|
(71 |
) |
- |
|
72 |
|
Deferred installation fee |
70 |
|
2 |
|
- |
|
72 |
|
Finance leases |
9 |
|
13 |
|
- |
|
22 |
|
Total deferred tax assets |
1,036 |
|
91 |
|
(85 |
) |
1,042 |
|
88
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
f. Deferred tax assets and liabilities (continued)
|
|
Desember 31, 2013 (Restated) |
|
(Charged) credit to the consolidated statement of profit or loss |
|
(Charged) credit to the other comprehensive Income |
|
December 31, 2014 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
Difference between accounting and tax bases of property and equipment |
|
(1.543 |
) |
85 |
|
- |
|
(1.458 |
) |
Valuation of long-term investment |
|
(70 |
) |
1 |
|
- |
|
(69 |
) |
Land rights, intangible assets, and others |
|
(11 |
) |
(3 |
) |
- |
|
(14 |
) |
Total deferred tax liabilities |
|
(1.624 |
) |
83 |
|
- |
|
(1.541 |
) |
Deferred tax liabilities of the Company - net |
|
(588 |
) |
174 |
|
(85 |
) |
(499 |
) |
Telkomsel |
|
|
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
|
Provisions for employee benefits |
|
207 |
|
27 |
|
40 |
|
274 |
|
Provision for impairment of receivables |
|
121 |
|
8 |
|
- |
|
129 |
|
Recognition of interest under USO arrangements |
|
0 |
|
(0 |
) |
0 |
|
0 |
|
Total deferred tax assets |
|
328 |
|
35 |
|
40 |
|
403 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
Difference between accounting and tax bases of property and equipment |
|
(2,268 |
) |
224 |
|
- |
|
(2,044 |
) |
Finance leases |
|
(121 |
) |
(133 |
) |
- |
|
(254 |
) |
Intangible assets |
|
(62 |
) |
1 |
|
- |
|
(61 |
) |
Total deferred tax liabilities |
|
(2,451 |
) |
92 |
|
- |
|
(2,359 |
) |
Deferred tax liabilities of Telkomsel - net |
|
(2,123 |
) |
127 |
|
40 |
|
(1,956 |
) |
Deferred tax liabilities of other subsidiaries - net |
|
(197 |
) |
(51 |
) |
- |
|
(248 |
) |
Deferred tax liabilities - net |
|
(2,908 |
) |
250 |
|
(45 |
) |
(2,703 |
) |
Deferred tax assets - net |
|
67 |
|
25 |
|
3 |
|
95 |
|
As of September 30, 2015 and December 31, 2014, the aggregate amounts of temporary differences associated with investments in subsidiaries and associated companies, for which deferred tax liabilities have not been recognized were Rp23,532 billion and Rp27,112 billion, respectively.
Realization of the deferred tax assets is dependent upon the Group’s capability in generating future profitable operations. Although realization is not assured, the Group believes 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 reduce if actual future taxable income is lower than estimates.
g. Administration
From 2008 to 2014, 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 nine months period ended September 30, 2015, the Company calculates the deferred tax using the tax rate of 20%.
The taxation laws of Indonesia require that the Company and its local 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 earlier, 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 became due.
89
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
g. Administration (continued)
The Ministry 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 Ministry 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.
The Company received a letter from the Large Tax Office Four No. Pemb-00 427 / WPJ.19 / KP.0405 / RIK.SIS / 2015 dated June 29, 2015 regarding the notice of field examination for the tax period January to December 2014. There is no tax audit performed for fiscal years 2010, 2012, and 2013.
The Company received a certificate of tax audit exemption from the DGT for fiscal years 2010 and 2012 which is valid unless the Company files for corporate income tax overpayment, in which case a tax audit will be performed.
31. BASIC AND DILUTED EARNINGS PER SHARE
Basic earnings per share is computed by dividing profit for the year attributable to owners of the parent company amounting to Rp17,337 billion and Rp16,101 billion by the weighted average number of shares outstanding during the period totaling 98,175,853,600 and 97,534,003,783 for the nine months period ended September 30, 2015 and for the year ended 2014, respectively. The weighted average number of shares takes into account the weighted average effect of changes in treasury stock transaction during the year.
Basic earnings per share amounted to Rp117.60 and Rp115.53 (in full amount) for the nine months period ended September 30, 2015 and 2014, respectively.
The Company does not have potentially dilutive financial investments as of September 30, 2015 and 2014.
32. CASH DIVIDENDS AND GENERAL RESERVE
Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 4 dated April 4, 2014 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of cash dividend and special cash dividend for 2013 amounting to Rp7,813 billion (Rp80.46 per share) and Rp2,130 billion (Rp21.94 per share), respectively. On May 16, 2014, the Company paid the cash dividend and special cash dividend totalling Rp9,943 billion.
Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 26 dated April 17, 2015 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of cash dividend and special cash dividend for 2013 amounting to Rp7,319 billion (Rp74.55 per share) and Rp1,463 billion (Rp14.91 per share), respectively. On May 21, 2015, the Company paid the cash dividend and special cash dividend totalling Rp8,782 billion.
Appropriation of Retained Earnings
Under the Limited Liability Company Law, the Company is required to establish a statutory reserve amounting to at least 20% of its issued and paid-up capital.
The balance of the appropriated retained earnings of the Company as of September 30, 2015 and December 31, 2014 amounted to 15,337 billion, respectively.
90
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS
|
September 30,, 2015 |
|
December 31, 2014 (Restated) |
|
Prepaid pension benefit cost |
1,058 |
|
1,170 |
|
Pension benefit and other post-employment benefit obligations |
|
|
|
|
Pension |
|
|
|
|
The Company |
|
|
|
|
Unfunded |
2,330 |
|
2,326 |
|
Telkomsel |
760 |
|
644 |
|
Infomedia |
1 |
|
- |
|
Total pension |
3,091 |
|
2,970 |
|
Other post-employment benefit |
489 |
|
488 |
|
Obligation under the Labor Law |
253 |
|
216 |
|
Total |
3,883 |
|
3,674 |
|
The breakdown of the benefit expense recognized in the consolidated statements of comprehensive income is as follows:
|
September 30, 2015 |
|
September 30, 2014 (Restated) |
|
Net periodic pension costs |
|
|
|
|
The Company |
290 |
|
330 |
|
Telkomsel |
116 |
|
86 |
|
Infomedia |
- |
|
- |
|
Net periodic pension costs (Note 26) |
406 |
|
416 |
|
Other post-retirement benefit costs (Note 26) |
35 |
|
36 |
|
Employee benefit costs under the Labor Law |
38 |
|
24 |
|
Amounts recognized in OCI amounted to RpNil as of September 30, 2015 and 2014, respectively.
a. Prepaid pension benefit costs
The Company sponsors a defined benefit pension plan for 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 the nine months period ended September 30, 2015 and for the year ended December 31, 2014 RpNil, respectively.
The following table presents the changes in projected pension benefit obligations, changes in pension benefit plan assets, funded status of the pension plan and net amount recognized in the consolidated statements of financial position for the nine months period ended September 30, 2015 and for the year ended December 31, 2014, on the defined benefit pension plan:
91
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Prepaid pension benefit costs (continued)
|
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Changes in projected pension benefit obligations |
|
|
|
|
|
Projected pension benefit obligations at beginning of year |
|
17,402 |
|
14,883 |
|
Charged to profit or loss |
|
|
|
|
|
Service costs |
|
164 |
|
188 |
|
Past service cost - plan amendment |
|
- |
|
204 |
|
Interest costs |
|
1,084 |
|
1,348 |
|
Pension plan participants’ contributions |
|
34 |
|
45 |
|
Actuarial (losses) gain recognized in OCI |
|
(2,740 |
) |
1,471 |
|
Expected pension benefits paid |
|
(606 |
) |
(737 |
) |
Projected pension benefit obligations |
|
15,338 |
|
17,402 |
|
Changes in pension benefit plan assets |
|
|
|
|
|
Fair value of pension plan assets at beginning of year |
|
18,929 |
|
16,803 |
|
Interest income |
|
1,182 |
|
1,534 |
|
Return on plan assets (excluding amount included in net interest expense) |
|
(2,740 |
) |
1,340 |
|
Pension plan participants’ contributions |
|
34 |
|
45 |
|
Expected pension benefits paid |
|
(606 |
) |
(737 |
) |
Administrative expenses paid |
|
(46 |
) |
(56 |
) |
Fair value of pension plan assets |
|
16,753 |
|
18,929 |
|
Funded status |
|
1,415 |
|
1,527 |
|
Unrecoverable surplus (effect of asset ceiling) |
|
(357 |
) |
(357 |
) |
Prepaid pension benefit cost |
|
1,058 |
|
1,170 |
|
92
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Prepaid pension benefit costs (continued)
As of September 30, 2015 and December 31, 2014, pension plan assets mainly consisted of :
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
|
Quoted in active market |
|
Unquoted |
|
Quoted in active market |
|
Unquoted |
|
Cash and cash equivalent |
|
1,876 |
|
- |
|
2,476 |
|
- |
|
Equity instruments |
|
|
|
|
|
|
|
|
|
Finance |
|
951 |
|
- |
|
1,137 |
|
- |
|
Consumer goods |
|
768 |
|
- |
|
796 |
|
- |
|
Infrastructure, utilities and transportation |
|
570 |
|
- |
|
724 |
|
- |
|
Construction, property and real estate |
|
467 |
|
- |
|
508 |
|
- |
|
Basic industry and chemical |
|
157 |
|
- |
|
409 |
|
- |
|
Trading, service and investment |
|
206 |
|
- |
|
269 |
|
- |
|
Mining |
|
64 |
|
- |
|
142 |
|
- |
|
Agriculture |
|
38 |
|
- |
|
62 |
|
- |
|
Miscellaneous industries |
|
221 |
|
- |
|
325 |
|
- |
|
Equity-based mutual fund |
|
996 |
|
- |
|
1,172 |
|
- |
|
Fixed income instruments |
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
- |
|
3,644 |
|
- |
|
3,351 |
|
Government bonds |
|
5,919 |
|
405 |
|
6,526 |
|
451 |
|
Non-public equity - direct placement |
|
- |
|
153 |
|
- |
|
153 |
|
Property |
|
- |
|
153 |
|
- |
|
153 |
|
Others |
|
- |
|
165 |
|
- |
|
275 |
|
Total |
|
12,233 |
|
4,520 |
|
14,546 |
|
4,383 |
|
Pension plan assets also include Series B shares issued by the Company with fair values totalling Rp378 billion and Rp348 billion, representing 2.26% and 1.84% of total plan assets as of September 30, 2015 and December 31, 2014, respectively, and bonds issued by the Company with fair value totalling Rp453 billion and Rp151 billion representing 2.71% and 0.80% of total assets as of September 30, 2015 and December 31, 2014, respectively.
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 Rp(1,604) billion and Rp2,817 billion for the nine months period ended September 30, 2015 and for the year ended December 31, 2014, respectively. Based on the Company’s policy issued on January 14, 2014 regarding Dapen’s Funding Policy, the Company will not contribute to Dapen when Dapen’s Funding Sufficiency Ratio (FSR) is above 105%. Therefore, the Company does not expect to contribute to the defined benefit pension plan in 2015.
Based on the Company policy issued on July 1, 2014, regarding Pension Regulation by Dana Pensiun Telkom, there is an increase in monthly benefits given to the pensioners, widow/widower or the children of participants who stopped working before the end of June 2002.
93
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Prepaid pension benefit costs (continued)
The movements of the prepaid pension benefit cost during the nine months period ended September 30, 2015 and for the year ended December 31, 2014 are as follows:
|
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Prepaid pension benefit cost at beginning of year |
|
1,170 |
|
949 |
|
Net periodic pension benefit cost |
|
(112 |
) |
(262 |
) |
Actuarial losses (gain) recognized via the OCI |
|
2,740 |
|
(1,471 |
) |
Asset ceiling recognized via the OCI |
|
- |
|
614 |
|
Return on plan assets (excluding amount included in net interest expense) |
|
(2,740 |
) |
1,340 |
|
Prepaid pension benefit cost at end of year |
|
1,058 |
|
1,170 |
|
The components of net periodic pension benefit cost are as follows:
|
|
SSeptember 30, 2015 |
|
September 30, 2014 (Restated) |
|
Service costs |
|
164 |
|
192 |
|
Plan administration cost |
|
46 |
|
69 |
|
Net interest cost |
|
(98 |
) |
(137 |
) |
Net periodic pension benefit cost |
|
112 |
|
124 |
|
Cost to subsidiaries by agreement |
|
(10 |
) |
- |
|
Net periodic pension benefit cost less cost to subsidiaries by agreement (Note 26) |
|
102 |
|
124 |
|
Amounts recognized in OCI are as follows:
|
|
September 30, 2015 |
|
September 30, 2014 (Restated) |
|
Actuarial (losses) gain recognized during the year |
|
(2,740 |
) |
527 |
|
Return on plan assets (excluding amount included in net interest expense) |
|
2,740 |
|
(527 |
) |
Net |
|
- |
|
- |
|
94
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Prepaid pension benefit costs (continued)
The actuarial valuation for the defined benefit pension plan and the other post-employment benefits (Notes 33b and 33c) was performed based on the measurement date as of December 31, 2014 and 2013, with reports dated February 24, 2015, and February 28, 2014, 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, 2014 and 2013 are as follows:
|
|
December 31, 2014 |
|
December 31, 2013 |
|
Discount rate |
|
8.50% |
|
9.00% |
|
Rate of compensation increases |
|
8.00% |
|
8.00% |
|
Indonesian mortality table |
|
2011 |
|
2011 |
|
b. Pension benefit costs provisions
(i) The Company
The Company sponsors unfunded defined benefit pension plans and a defined contribution pension plan for its employees.
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 Rp5 billion and Rp6 billion as of September 30, 2015 and December 31, 2014, respectively.
Since 2007, the Company has provided 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 has increased the Company’s obligations 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 becoming disabled starting from February 1, 2009. The change in benefit has increased the Company’s obligations by Rp435 billion, which is amortized over 8.63 years until 2018.
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.
95
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Pension benefit costs provisions (continued)
(i) The Company (continued)
The following table presents the change in projected pension benefits obligation of MPS and MPP for for the nine months period ended September 30, 2015 and for the year ended December 31, 2014:
|
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Changes in projected pension benefit obligations |
|
|
|
|
|
Unfunded projected pension benefit obligations at beginning of year |
|
2,326 |
|
2,201 |
|
Charged to profit or loss |
|
|
|
|
|
Service costs |
|
45 |
|
80 |
|
Interest costs |
|
143 |
|
194 |
|
Actuarial losses recognized in OCI |
|
- |
|
31 |
|
Benefits paid by employer |
|
(184 |
) |
(180 |
) |
Unfunded projected pension benefit obligations at end of year |
|
2,330 |
|
2,326 |
|
The components of total periodic pension benefit cost are as follows:
|
|
September 30, 2015 |
|
September 30, 2014 (Restated) |
|
Service costs |
|
45 |
|
60 |
|
Net interest cost |
|
143 |
|
146 |
|
Total periodic pension benefit cost |
|
188 |
|
206 |
|
Amounts recognized in OCI amounted to RpNil as of September 30, 2015 and 2014, respectively.
The principal actuarial assumptions used by the independent actuary as of December 31, 2014 and 2013 are as follows:
|
|
2014 |
|
2013 |
|
Discount rate |
|
8.50% |
|
9.00% |
|
Rate of compensation increases |
|
8.00% |
|
8.00% |
|
Indonesian mortality table |
|
2011 |
|
2011 |
|
96
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Pension benefit costs provisions (continued)
(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 have been fully made by Telkomsel.
Telkomsel’s contributions to Jiwasraya amounted to RpNil and Rp98 billion for the nine months period ended September 30, 2015 and for the year ended December 31, 2014, 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 statement of financial position for the nine months period ended
September 30, 2015 and for the year ended 2014 of its defined benefit pension plan:
|
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Changes in projected pension benefit obligation |
|
|
|
|
|
Projected pension benefit obligation at beginning of year |
|
1,281 |
|
899 |
|
Charged to profit or loss |
|
|
|
|
|
Service costs |
|
76 |
|
74 |
|
Net interest cost |
|
40 |
|
81 |
|
Actuarial losses recognized in OCI |
|
- |
|
234 |
|
Expected benefits paid |
|
- |
|
(7 |
) |
Projected pension benefit obligation at end of year |
|
1,397 |
|
1,281 |
|
Changes in pension benefit plan assets |
|
|
|
|
|
Fair value of plan assets at beginning of year |
|
637 |
|
439 |
|
Interest income in profit or loss |
|
- |
|
40 |
|
Return on plan assets (excluding amount included in net interest expense) in OCI |
|
- |
|
67 |
|
Employer’s contributions |
|
- |
|
98 |
|
Expected benefits paid |
|
- |
|
(7 |
) |
Fair value of plan assets at end of year |
|
637 |
|
637 |
|
Funded status |
|
(760 |
) |
(644 |
) |
Provision for pension benefit cost |
|
(760 |
) |
(644 |
) |
97
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Pension benefit costs provisions (continued)
(i) Telkomsel (continued)
Movements of the provision for pension benefit cost during the nine months period ended September 30, 2015 and for the year ended December 31, 2014:
|
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Provision for pension benefit cost at beginning of year |
|
(644 |
) |
(460 |
) |
Periodic pension benefit cost |
|
(116 |
) |
(115 |
) |
Actuarial (losses) recognized via the OCI |
|
- |
|
(234 |
) |
Return on plan assets (excluding amount included in net interest expense) |
|
- |
|
67 |
|
Employer contributions |
|
- |
|
98 |
|
Provision for pension benefit cost at end of year |
|
(760 |
) |
(644 |
) |
The components of the periodic pension benefit cost are as follows:
|
|
September 30, 2015 |
|
September 30, 2014 (Restated) |
|
Service costs |
|
76 |
|
55 |
|
Net interest cost |
|
40 |
|
31 |
|
Total periodic pension benefit cost |
|
116 |
|
86 |
|
The net periodic pension costs for the pension plan was calculated based on the measurement date as of December 31, 2014 and 2013, with reports dated February 5, 2015 and February 20, 2014, 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, 2014 and 2013, are as follows:
|
|
December 31, 2014 |
|
December 31, 2013 |
|
Discount rate |
|
8.25% |
|
9.00% |
|
Rate of compensation increases |
|
6.50% |
|
6.50% |
|
Indonesian mortality table |
|
2011 |
|
2011 |
|
98
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
c. Other post-employment benefits provisions
The Company provides other post-retirement benefits in the form of cash paid to employees on their retirement or termination. These benefits consist of final housing allowance (“Biaya Fasilitas Perumahan Terakhir” or “BFPT”) and home passage leave (“Biaya Perjalanan Pensiun dan Purnabhakti” or “BPP”).
The changes of the projected other post-employment benefit obligations for the nine months period ended September 30, 2015 and for the year ended December 31, 2014 are as follows:
|
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Changes in projected other post-employment benefits provision |
|
|
|
|
|
Unfunded projected benefit obligations at beginning of year |
|
488 |
|
450 |
|
Charged to profit or loss |
|
|
|
|
|
Service costs |
|
6 |
|
9 |
|
Net interest cost |
|
29 |
|
39 |
|
Actuarial losses recognized in OCI |
|
- |
|
24 |
|
Benefits paid by employer |
|
(34 |
) |
(34 |
) |
Provision for other post-employment benefits |
|
489 |
|
488 |
|
The components of the projected other post-employment benefit cost as of September 30, 2015 and 2014 are as follows:
|
|
September 30, 2015 |
|
September 30, 2014 (Restated) |
|
Service costs |
|
6 |
|
7 |
|
Net interest cost |
|
29 |
|
29 |
|
Total |
|
35 |
|
36 |
|
Amounts recognized in OCI amounted to Rpnil as of September 30, 2015 and 2014, respectively.
The principal actuarial assumptions used by the independent actuary based on the measurement date as of December 31, 2014 and December 31, 2013, are as follows:
|
|
December 31, 2014 |
|
December 31, 2013 |
|
Discount rate |
|
8.50% |
|
9.00% |
|
Rate of compensation increases |
|
8.00% |
|
8.00% |
|
Indonesian mortality table |
|
2011 |
|
2011 |
|
d. Obligation under the Labor Law provisions
Under Law No. 13 Year 2003, the Group is required to provide minimum pension benefits, if not covered yet by the sponsored pension plans, to its employees upon retirement age. The total related obligation recognized for the nine months period ended September 30, 2015 and for the year ended December 31, 2014 amounted to Rp253 billion and Rp216 billion, respectively. The related employee benefits cost charged to expense amounted to Rp38 billion and Rp24 billion for the nine months period ended September 30, 2015 and 2014, respectively.
99
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Maturity Profile of Defined Benefit Obligation (“DBO”)
Weighted average duration of DBO for the Company and Telkomsel are 18.93 years and 15.14 years, respectively. The timing of benefits payments for 2015 is as follows (in millions of Rupiah):
|
|
Expected BenefitsPayment |
|
||||||
|
|
Company |
|
|
|
|
|
||
Time Period |
|
Funded |
|
Unfunded |
|
Telkomsel |
|
Other post-employment benefits |
|
Within next 10 years |
|
13,949 |
|
2,968 |
|
282 |
|
661 |
|
Within 10-20 years |
|
20,361 |
|
204 |
|
2,848 |
|
184 |
|
Within 20-30 years |
|
17,979 |
|
12 |
|
6,902 |
|
54 |
|
Within 30-40 years |
|
10,418 |
|
0 |
|
7,434 |
|
1 |
|
Within 40-50 years |
|
3,347 |
|
- |
|
4,917 |
|
- |
|
Within 50-60 years |
|
477 |
|
- |
|
2,024 |
|
- |
|
Within 60-70 years |
|
23 |
|
- |
|
407 |
|
- |
|
Within 70-80 years |
|
0 |
|
- |
|
29 |
|
- |
|
b. Sensitivity Analysis
0.5% change in discount rate and rate of salary would have effect on DBO, as follows:
|
|
Discount Rate |
|
Rate of Compensation |
|
||||
Sensitivity |
|
0.5% Increase |
|
0.5% Decrease |
|
0.5% Increase |
|
0.5% Decrease |
|
Funded |
|
(755 |
) |
822 |
|
186 |
|
(193 |
) |
Unfunded |
|
(40 |
) |
41 |
|
34 |
|
(34 |
) |
Telkomsel |
|
(131 |
) |
147 |
|
83 |
|
(75 |
) |
Other post-employment benefits |
|
(10 |
) |
10 |
|
- |
|
- |
|
The sensitivity analyses have been determined based on a method that extrapolates the impact on DBO as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
The sensitivity results above determine the individual impact on the Plan’s end of the year DBO. In reality, the Plan is subject to multiple external experience items which may move the DBO in similar or opposite directions, and the Plan’s sensitivity to such changes can vary over time.
There are no changes in the methods and assumptions used in preparing the sensitivity analyses from the previous period.
34. LONG SERVICE AWARDS (“LSA”)
Telkomsel and Patrakom 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 Rp432 billion and Rp410 billion as of September 30, 2015 and December 31, 2014, respectively. The related benefit costs charged to expense amounted to Rp67 billion and Rp47 billion for the nine months period ended September 30, 2015 and 2014, respectively (Note 26).
100
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
35. POST-EMPLOYMENT HEALTH CARE BENEFITS PROVISIONS
The Company provides post-employment health care benefits 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-employment health care benefit 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 at the time of retirement. The Company’s contribution to the plan amounted to Rp14 billion and Rp15 billion for the nine months period ended September 30, 2015 and for the year ended December 31, 2014, respectively.
The following table presents the change in the projected post-employment health care benefits obligation, change in post-employment health care benefits plan assets, funded status of the post- employment health care benefits plan and net amount recognized in the Company’s consolidated statement of financial position as of September 30, 2015 and December 31, 2014:
|
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Changes in projected post-employment health care benefit provision |
|
|
|
|
|
Projected post-employment health care benefit obligation at beginning of year |
|
11,505 |
|
10,653 |
|
Service costs |
|
37 |
|
45 |
|
Interest costs |
|
721 |
|
942 |
|
Actuarial (losses) gain |
|
(1,227 |
) |
238 |
|
Expected post-employment health care benefits paid |
|
(290 |
) |
(373 |
) |
Projected post-employment health care benefit provision at end of year |
|
10,746 |
|
11,505 |
|
Changes in post-employment health care plan assets |
|
|
|
|
|
Fair value of plan assets at beginning of year |
|
11,064 |
|
9,660 |
|
Interest income |
|
693 |
|
863 |
|
Return on plan assets (excluding amount included in net interest expense) |
|
(1,227 |
) |
814 |
|
Employer’s contributions |
|
- |
|
226 |
|
Expected post-employment health care benefits paid |
|
(290 |
) |
(373 |
) |
Administrative expenses paid |
|
(118 |
) |
(126 |
) |
Fair value of plan assets at end of year |
|
10,122 |
|
11,064 |
|
Funded status |
|
(624 |
) |
(441 |
) |
Provision for post-employment health care benefit |
|
(624 |
) |
(441 |
) |
101
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
35. POST-EMPLOYMENT HEALTH CARE BENEFITS PROVISIONS (continued)
As of June 30, 2015 and December 31, 2014, plan assets consisted of:
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
|
Quoted in active market |
|
Unquoted |
|
Quoted in active market |
|
Unquoted |
|
Cash and cash equivalent |
|
837 |
|
- |
|
794 |
|
|
- |
Listed shares: |
|
|
|
|
|
|
|
|
|
Manufacturing and consumer |
|
404 |
|
- |
|
516 |
|
|
- |
Finance industry |
|
470 |
|
- |
|
369 |
|
|
- |
Construction |
|
255 |
|
- |
|
271 |
|
|
- |
Infrastructure and telecommunication |
|
212 |
|
- |
|
202 |
|
|
- |
Wholesale |
|
52 |
|
- |
|
145 |
|
|
- |
Mining |
|
17 |
|
- |
|
69 |
|
|
- |
Other industries: |
|
|
|
|
|
|
|
|
|
Services |
|
24 |
|
- |
|
65 |
|
|
- |
Agriculture |
|
27 |
|
- |
|
23 |
|
|
- |
Biotech and Pharma Industry |
|
78 |
|
- |
|
9 |
|
|
- |
Others |
|
4 |
|
- |
|
38 |
|
|
- |
Equity-based mutual funds |
|
1,022 |
|
- |
|
1,767 |
|
|
- |
Fixed income-based securities: |
|
|
|
|
|
|
|
|
|
Fixed income mutual funds |
|
6,494 |
|
- |
|
6,589 |
|
|
- |
Unlisted shares: |
|
|
|
|
|
|
|
|
|
Private placement |
|
- |
|
187 |
|
- |
|
177 |
|
Others |
|
- |
|
39 |
|
- |
|
30 |
|
Total |
|
9,896 |
|
226 |
|
10,857 |
|
207 |
|
Yakes plan assets also include Series B shares issued by the Company with fair value totalling Rp150 billion and Rp140 billion representing 1.48% and 1.27% of total assets as of September 30, 2015 and December 31, 2014, respectively.
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 Rp(653) billion and Rp1,550 billion for the nine months period ended September 30, 2015 and for the year ended December 31, 2014, respectively.
The movements of the provision for projected post-employment health care benefit for the nine months period ended September 30, 2015 and for the year ended December 31, 2014 are as follows:
|
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
|
Changes in projected post-employment health care benefit provision |
|
|
|
|
|
|
Defined benefit liability at beginning of year |
|
441 |
|
993 |
|
|
Net periodic pension cost |
|
183 |
|
250 |
|
|
Employer contributions |
|
- |
|
(226 |
) |
|
Actuarial (losses) gain recognized via the OCI |
|
(1,227 |
) |
238 |
|
|
Return on plan assets (excluding amount included in net interest expense) |
|
1,227 |
|
(814 |
) |
|
Provision for post-employment health care benefit |
|
624 |
|
441 |
|
|
102
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
35. POST-EMPLOYMENT HEALTH CARE BENEFITS PROVISIONS (continued)
The components of net periodic post-employment health care benefit cost for the years ended September 30, 2015 and 2014 are as follows:
|
|
September 30, 2015 |
|
September 30, 2014 (Restated) |
|
Service costs |
|
37 |
|
34 |
|
Plan administration cost |
|
118 |
|
132 |
|
Net interest cost |
|
28 |
|
59 |
|
Net periodic post-employment health care benefit cost |
|
183 |
|
225 |
|
Cost to subsidiaries by agreement |
|
0 |
|
(1 |
) |
Periodic post-employment health care benefit cost Less cost to subsidiaries |
|
183 |
|
224 |
|
Amounts recognized in OCI are as follows:
|
|
September 30, 2015 |
|
September 30, 2014 (Restated) |
|
Actuarial (losses) gain recognized during the year |
|
(1,227 |
) |
636 |
|
Return on plan assets (excluding amount included in net interest expense) |
|
1,227 |
|
(636 |
) |
Net |
|
- |
|
- |
|
The actuarial valuation for the post-employment health care benefits was performed based on the measurement date as of December 31, 2014 and 2013, with reports dated February 24, 2013 and February 28, respectively, by TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary as of December 31, 2014 and 2013 are as follows:
|
|
December 31, 2014 |
|
December 31, 2013 |
|
Discount rate |
|
8.50% |
|
9.00% |
|
Health care costs trend rate assumed for next year |
|
7.00% |
|
7.00% |
|
Ultimate health care costs trend rate |
|
7.00% |
|
7.00% |
|
Year that the rate reaches the ultimate trend rate |
|
2015 |
|
2014 |
|
Indonesian mortality table |
|
2011 |
|
2011 |
|
The timing of benefits payments for 2015 is as follows (in millions of rupiah):
Time Period |
|
Post-Employment Health Care Benefits |
|
Within next 10 years |
|
4,719 |
|
Within 10-20 years |
|
7,035 |
|
Within 20-30 years |
|
7,519 |
|
Within 30-40 years |
|
6,174 |
|
Within 40-50 years |
|
3,210 |
|
Within 50-60 years |
|
400 |
|
Within 60-70 years |
|
2 |
|
Within 70-80 years |
|
0 |
|
103
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
35. POST-EMPLOYMENT HEALTH CARE BENEFITS PROVISIONS (continued)
0.5% change in discount rate and rate of salary would have effect on DBO, as follows:
|
|
Discount Rate |
|
Rate of Compensation |
|
||||
Sensitivity |
|
0.5% Increase |
|
0.5% Decrease |
|
0.5% Increase |
|
0.5% Decrease |
|
|
|
Increase (decrease) in amounts |
|
Increase (decrease) in amounts |
|
||||
Post-employment health care |
|
(1,314 |
) |
1,616 |
|
1,740 |
|
(1,430 |
) |
36. RELATED PARTY TRANSACTIONS
In the normal course of its business, the Group entered into transactions with related parties. It is the Company's policy that the pricings 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 accounts/transactions with significant related parties are as follows:
Related parties |
|
Nature of relationships with related parties |
|
Nature of accounts/transactions |
|
The Government Ministry of Finance |
|
Majority stockholder |
|
Internet and data revenues, other telecommunication service revenues, finance costs and investment in financial instruments |
|
State-owned enterprises |
|
Entity under common control |
|
Internet and data service revenue, other telecommunication services revenue, operating expenses,purchase of property and equipment, construction and installation services, insurance expenses, finance income, finance costs, investment in financial instruments, insurance for property equipment, insurance for employees, electricity expenses and cost of SIM cards |
|
Indosat |
|
Entity under common control |
|
Interconnection revenue, interconnection expenses, telecommunication facilities usage, operating & maintenance costs, leased line revenue, satellite transponder usage revenue, usage of data communication, network system expenses and lease revenue |
|
PT Aplikanusa Lintasarta (“Lintasarta”)
|
|
Entity under common control |
|
Interconnection revenue, network revenue, usage of data communication network system expenses and leased lines expenses |
|
Indosat Mega Media |
|
Entity under common control |
|
Network revenues |
|
INTI |
|
Entity under common control |
|
Purchase of property and equipment |
|
LEN` |
|
Entity under common control |
|
Purchase of property and equipment |
|
104
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
a. Nature of relationships and accounts/transactions with related parties (continued)
Details of the nature of relationships and accounts/transactions with significant related parties are as follows (continued):
Related parties |
|
Nature of relationships with related parties |
|
Nature of accounts/transactions |
|
State-owned banks |
|
Entity under common control |
|
Finance income and finance costs |
|
BNI |
|
Entity under common control |
|
Internet and data revenue, other telecommunication service revenue, finance income and finance costs |
|
Bank Mandiri |
|
Entity under common control |
|
Internet and data revenue, other telecommunication service revenue, finance income and finance costs |
|
BRI |
|
Entity under common control |
|
Internet and data revenue, other telecommunication service revenue, finance income and finance costs |
|
BTN |
|
Entity under common control |
|
Internet and data revenue, other telecommunication service revenue, finance income and finance costs |
|
PT Bank Syariah Mandiri (“BSM”) |
|
Entity under common control |
|
Internet and data revenue, other telecommunication service revenue, and finance costs |
|
PT Bank BRI Syariah (“BRI Syariah”) |
|
Entity under common control |
|
Internet and data revenue, other telecommunication service revenue, and finance costs |
|
Bahana |
|
Entity under common control |
|
Available-for-sale financial assets, bonds and notes |
|
CSM |
|
Associated company |
|
Satelite transponder usage revenue, leasedline revenue and transmission lease expenses |
|
Indonusa |
|
Associated company |
|
Network revenue and data communication expense |
|
Yakes |
|
Entity under significant influence |
|
Medical expenses |
|
Koperasi Pegawai Telkom (“Kopegtel”) |
|
Entity under significant influence |
|
Purchase of property and equipment, construction and installation services, leases of buildings, leases of vehicles, purchases of vehicles, purchases of materials and construction services, utilities and cleaning service maintenance and RSA revenues |
|
PT Sandhy Putra Makmur (“SPM”) |
|
Entity under significant influence |
|
Leases of buildings, leases of vehicles, purchases of vehicles, purchases of materials and construction services, utilities and cleaning service |
|
Koperasi Pegawai Telkomsel (“Kisel”) |
|
Entity under significant influence |
|
Leases of vehicles, printing and distribution of customer bills expenses, collection fee, and other services fee, distribution of SIM cards and pulse reload voucher |
|
PT Graha Informatika Nusantara (“Gratika”) |
|
Entity under significant influence |
|
Interconnection revenue, purchase of property and equipment, installation expense, and maintenance expense |
|
PT Pasifik Satelit Nusantara (“PSN”) |
|
Entity under significant influence |
|
Interconnection revenue, transmission leases expenses and interconnection expenses |
|
Directors and commissioners |
|
Key management personnel |
|
Honorarium and facilities |
|
105
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties
The following are significant transactions with related parties:
|
|
September 30, 2015 |
|
September 30, 2014 |
|
||||
|
|
Amount |
|
% of total revenues |
|
Amount |
|
% of total revenues |
|
REVENUES |
|
|
|
|
|
|
|
|
|
Entities under common control |
|
|
|
|
|
|
|
|
|
Indosat |
|
724 |
|
0.96 |
|
764 |
|
1.16 |
|
State-owned enterprises |
|
525 |
|
0.69 |
|
599 |
|
0.91 |
|
Government |
|
203 |
|
0.27 |
|
127 |
|
0.19 |
|
BRI |
|
137 |
|
0.18 |
|
90 |
|
0.14 |
|
Bank Mandiri |
|
115 |
|
0.15 |
|
90 |
|
0.14 |
|
BNI |
|
90 |
|
0.12 |
|
70 |
|
0.11 |
|
Lintasarta |
|
65 |
|
0.09 |
|
63 |
|
0.10 |
|
BSM |
|
33 |
|
0.04 |
|
48 |
|
0.07 |
|
BTN |
|
22 |
|
0.03 |
|
23 |
|
0.03 |
|
BRI Syariah |
|
5 |
|
0.01 |
|
9 |
|
0.01 |
|
Sub-total |
|
1,919 |
|
2.54 |
|
1,883 |
|
2.86 |
|
Entity under significant influence |
|
|
|
|
|
|
|
|
|
Kisel |
|
2,628 |
|
3.47 |
|
2,238 |
|
3.40 |
|
Gratika |
|
298 |
|
0.39 |
|
288 |
|
0.44 |
|
Sub-total |
|
2,926 |
|
3.86 |
|
2,526 |
|
3.84 |
|
Associated companies |
|
|
|
|
|
|
|
|
|
Indonusa |
|
43 |
|
0.06 |
|
71 |
|
0.11 |
|
Others |
|
122 |
|
0.16 |
|
118 |
|
0.18 |
|
Total |
|
5,010 |
|
6.62 |
|
4,598 |
|
6.99 |
|
|
|
September 30, 2015 |
|
September 30, 2014 |
|
||||
|
|
Amount |
|
% of total expenses |
|
Amount |
|
% of total expenses |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
Entities under common control State-owned enterprises |
|
834 |
|
1.60 |
|
985 |
|
2.21 |
|
Indosat |
|
665 |
|
1.28 |
|
702 |
|
1.57 |
|
Sub-total |
|
1,499 |
|
2.88 |
|
1,687 |
|
3.78 |
|
Entity under significant influence |
|
|
|
|
|
|
|
|
|
Kisel |
|
574 |
|
1.10 |
|
732 |
|
1.64 |
|
Kopegtel |
|
306 |
|
0.59 |
|
430 |
|
0.96 |
|
PSN |
|
111 |
|
0.21 |
|
107 |
|
0.24 |
|
Yakes |
|
41 |
|
0.08 |
|
168 |
|
0.38 |
|
SPM |
|
5 |
|
0.01 |
|
11 |
|
0.02 |
|
Sub-total |
|
1,037 |
|
1.99 |
|
1,448 |
|
3.24 |
|
Associated company |
|
|
|
|
|
|
|
|
|
CSM |
|
9 |
|
0.02 |
|
37 |
|
0.08 |
|
Others |
|
17 |
|
0.03 |
|
23 |
|
0.05 |
|
Total |
|
2,562 |
|
4.92 |
|
3,195 |
|
7.15 |
|
106
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
|
|
September 30, 2015 |
|
September 30, 2014 |
|
||||
|
|
Amount |
|
finance income |
|
Amount |
|
finance income |
|
FINANCE INCOME |
|
|
|
|
|
|
|
|
|
Entity under common control |
|
|
|
|
|
|
|
|
|
State-owned banks |
|
617 |
|
62.96 |
|
565 |
|
60.88 |
|
|
|
September 30, 2015 |
|
September 30, 2014 |
|
||||
|
|
Amount |
|
finance costs |
|
Amount |
|
finance costs |
|
FINANCE COSTS |
|
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
|
The Government |
|
59 |
|
3.56 |
|
66 |
|
4.95 |
|
Entity under common control |
|
|
|
|
|
|
|
|
|
State-owned banks |
|
836 |
|
50.42 |
|
521 |
|
39.08 |
|
Total |
|
895 |
|
53.98 |
|
587 |
|
44.03 |
|
|
|
September 30, 2015 |
|
September 30, 2014 |
|
||||
|
|
Amount |
|
% of total property and equipment purchased |
|
Amount |
|
% of total property and equipment purchased |
|
Purchase of property and equipment (Note 10) |
|
|
|
|
|
|
|
|
|
Entities under common control |
|
|
|
|
|
|
|
|
|
INTI |
|
173 |
|
1.02 |
|
- |
|
- |
|
LEN |
|
24 |
|
0.14 |
|
- |
|
- |
|
State-owned enterprises |
|
- |
|
- |
|
372 |
|
1.96 |
|
Sub-total |
|
197 |
|
1.16 |
|
372 |
|
1.96 |
|
Entity under significant influence |
|
|
|
|
|
|
|
|
|
Kopegtel |
|
52 |
|
0.31 |
|
42 |
|
0.22 |
|
Gratika |
|
33 |
|
0.19 |
|
- |
|
- |
|
Sub-total |
|
85 |
|
0.50 |
|
42 |
|
0.22 |
|
Others |
|
36 |
|
0.21 |
|
35 |
|
0.18 |
|
Total |
|
318 |
|
1.87 |
|
449 |
|
2.36 |
|
107
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
Presented below are balances of accounts with related parties:
|
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
|
|
Amount |
|
% of total assets |
|
Amount |
|
% of total assets |
|
a. |
Cash and cash equivalents (Note 4) |
|
16,350 |
|
10.32 |
|
10,464 |
|
7.43 |
|
b. |
Other current financial assets (Note 5) |
|
2,509 |
|
1.58 |
|
2,406 |
|
1.71 |
|
c. |
Trade receivables - net (Note 6) |
|
624 |
|
0.39 |
|
873 |
|
0.62 |
|
d. |
Advances and prepaid expenses (Note 8) |
|
65 |
|
0.04 |
|
24 |
|
0.02 |
|
e. |
Advances and other non-current assets (Note 11) |
|
|
|
|
|
|
|
|
|
|
Entity under common control BNI |
|
10 |
|
0.01 |
|
12 |
|
0.02 |
|
|
Others |
|
42 |
|
0.03 |
|
6 |
|
0.01 |
|
|
Total |
|
52 |
|
0.04 |
|
18 |
|
0.03 |
|
|
` |
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
|
|
Amount |
|
% of total liabilities |
|
Amount |
|
% of total liabilities |
|
f. |
Trade payables (Note 13) |
|
|
|
|
|
|
|
|
|
|
Entities under common control |
|
|
|
|
|
|
|
|
|
|
INTI |
|
299 |
|
0.42 |
|
323 |
|
0.58 |
|
|
Indosat |
|
236 |
|
0.33 |
|
146 |
|
0.26 |
|
|
Sub-total |
|
535 |
|
0.75 |
|
469 |
|
0.84 |
|
|
Entity under significant influence |
|
|
|
|
|
|
|
|
|
|
Yakes |
|
45 |
|
0.06 |
|
46 |
|
0.08 |
|
|
Kopegtel |
|
21 |
|
0.03 |
|
55 |
|
0.10 |
|
|
Sub-total |
|
66 |
|
0.09 |
|
101 |
|
0.18 |
|
|
Others |
|
594 |
|
0.83 |
|
327 |
|
0.59 |
|
|
Total |
|
1,195 |
|
1.67 |
|
897 |
|
1.61 |
|
108
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
|
|
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
|
|
Amount |
|
% of total liabilities |
|
Amount |
|
% of total liabilities |
|
g. |
Accrued expenses (Note 14) |
|
|
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
|
|
The Government |
|
27 |
|
0.04 |
|
16 |
|
0.03 |
|
|
Entities under common control |
|
|
|
|
|
|
|
|
|
|
State-owned banks |
|
152 |
|
0.21 |
|
84 |
|
0.15 |
|
|
Total |
|
179 |
|
0.25 |
|
100 |
|
0.18 |
|
h. |
Advances from customers and suppliers |
|
|
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
|
|
The Government |
|
23 |
|
0.03 |
|
19 |
|
0.03 |
|
i. |
Short-term bank loans (Note 16) |
|
|
|
|
|
|
|
|
|
|
Entities under common control |
|
|
|
|
|
|
|
|
|
|
BRI |
|
57 |
|
0.08 |
|
57 |
|
0.10 |
|
|
BNI |
|
25 |
|
0.04 |
|
- |
|
- |
|
|
BSM |
|
15 |
|
0.02 |
|
15 |
|
0.03 |
|
|
Total |
|
97 |
|
0.14 |
|
72 |
|
0.13 |
|
j. |
Two-step loans (Note 18) |
|
|
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
|
|
The Government |
|
1,674 |
|
2.35 |
|
1,615 |
|
2.95 |
|
k. |
Long-term bank loans (Note 20) |
|
|
|
|
|
|
|
|
|
|
Entities under common control |
|
|
|
|
|
|
|
|
|
|
BRI |
|
6,740 |
|
9.45 |
|
2,975 |
|
5.43 |
|
|
BNI |
|
3,415 |
|
4.79 |
|
4,357 |
|
7.96 |
|
|
Bank Mandiri |
|
2,776 |
|
3.89 |
|
2,181 |
|
3.98 |
|
|
Total |
|
12,931 |
|
18.13 |
|
9,513 |
|
17.37 |
|
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 to provide 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 the implementation of Indosat Multimedia Mobile services and the settlement of 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, which enable each party’s customers to make domestic calls between Indosat’s GSM mobile network and the Company’s fixed line network, as well as allowing Indosat’s mobile customers to access the Company’s IDD service by dialing “007”.
109
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
c. Significant agreements with related parties (continued)
ii. Indosat (continued)
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 starting from January 1, 1995, as well as 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 took into account the compensation for billing and collection. The agreement is valid and effective starting from January to December 2012, and can be applied until a new agreement becomes available.
On December 28, 2006, the Company and Indosat signed amendments on 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 38). 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 and Lintasarta. 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 and Gratika for the utilization of the Company's satellite transponders or frequency channels of communication satellite and leased lines.
Kisel is a co-operative 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 personnels consists of the Boards of Commissioners and Directors of the Company and its subsidiaries.
The Group provides remuneration in the form of honorarium and facilities to support the operational duties of the Board of Commissioners and short-term employment benefits in the form of salaries and facilities to support the operational duties of the Board of Directors. The total of such benefits is as follows:
|
|
2015 |
|
2014 |
|
||||
|
|
Amount |
|
% of total expenses |
|
Amount |
|
% of total expenses |
|
Board of Directors |
|
484 |
|
0.93 |
|
343 |
|
0.78 |
|
Board of Commissioners |
|
149 |
|
0.29 |
|
95 |
|
0.22 |
|
110
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. OPERATING SEGMENT
The Group has 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 the Chief Operation Decision Maker are presented as "Others", which provides building management services.
No operating segments have been aggregated to form the operating segments of personal, home and others, while corporate operating segment is aggregated from business, enterprise, wholesale and international operating segments since they have the similar economic characteristics and similar in other qualitative criteria such as providing similar network services and serving corporate customers.
Management monitors the operating results of the 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 at market prices.
|
|
2015 |
|
||||||||||||
|
|
Corporate |
|
Home |
|
Personal |
|
Others |
|
Total before elimination |
|
Elimination |
|
Total consolidated |
|
Segment results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues |
|
16,271 |
|
5,507 |
|
53,724 |
|
217 |
|
75,719 |
|
- |
|
75,719 |
|
Inter-segment revenues |
|
11,085 |
3,145 |
|
1,898 |
|
1,540 |
|
17,668 |
|
(17,668 |
) |
- |
|
|
Total segment revenues |
|
27,356 |
|
8,652 |
|
55,622 |
|
1,757 |
|
93,387 |
|
(17,668 |
) |
75,719 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External expenses |
|
(15,927 |
) |
(5,365 |
) |
(29,000 |
) |
(1,435 |
) |
(51,727 |
) |
- |
|
(51,727 |
) |
Inter-segment expenses |
|
(6,442 |
) |
(3,290 |
) |
(7,566 |
) |
(126 |
) |
(17,424 |
) |
17,424 |
|
|
- |
Total segment expenses |
|
(22,369 |
) |
(8,655 |
) |
(36,566 |
) |
(1,561 |
) |
(69,151 |
) |
17,424 |
|
(51,727 |
) |
Segment results |
|
4,987 |
|
(3 |
) |
19,056 |
|
196 |
|
24,236 |
|
(244 |
) |
23,992 |
|
Capital expenditures |
|
(5,452 |
) |
(2,271 |
) |
(8,593 |
) |
(680 |
) |
(16,996 |
) |
- |
|
(16,996 |
) |
Depreciation and amortization |
|
(1,681 |
) |
(977 |
) |
(10,787 |
) |
(59 |
) |
(13,504 |
) |
- |
|
(13,504 |
) |
Provision for impairment of receivables |
|
(559 |
) |
(204 |
) |
(181 |
) |
(4 |
) |
(948 |
) |
- |
|
(948 |
) |
111
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. OPERATING SEGMENT (continued)
|
|
2014 (Restated) |
|
||||||||||||
|
|
Corporate |
|
Home |
|
Personal |
|
Others |
|
Total before elimination |
|
Elimination |
|
Total consolidated |
|
Segment results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues |
|
9,656 |
|
3,276 |
|
30,444 |
|
166 |
|
43,542 |
|
- |
|
43,542 |
|
Inter-segment revenues |
|
4,928 |
|
1,217 |
|
1,384 |
|
654 |
|
8,183 |
|
(8,183 |
) |
- |
|
Total segment revenues |
|
14,584 |
|
4,493 |
|
31,828 |
|
820 |
|
51,725 |
|
(8,183 |
) |
43,542 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External expenses |
|
(8,001 |
) |
(2,560 |
) |
(18,154 |
) |
(755 |
) |
(29,470) |
|
- |
|
(29,470 |
) |
Inter-segment expenses |
|
(3,038 |
) |
(1,483 |
) |
(3,656 |
) |
(6 |
) |
(8,183 |
) |
8,183 |
|
- |
|
Total segment expenses |
|
(11,039 |
) |
(4,043 |
) |
(21,810 |
) |
(761 |
) |
(37,653 |
) |
8,183 |
|
(29,470 |
) |
Segment results |
|
3,545 |
|
450 |
|
10,018 |
|
59 |
|
14,072 |
|
- |
|
14,072 |
|
Capital expenditures |
|
(3,545 |
) |
(1,285 |
) |
(6,952 |
) |
(246 |
) |
(11,866 |
) |
- |
|
(11,866) |
|
Depreciation and amortization |
|
(1,251 |
) |
(704 |
) |
(5,991 |
) |
(27 |
) |
(7,973 |
) |
- |
|
(7,973 |
|
Impairment of assets |
|
- |
|
- |
|
(190 |
) |
- |
|
(190 |
) |
- |
|
(190) |
|
Provision for impairment of receivables |
|
(197 |
) |
(124 |
) |
(8 |
) |
- |
|
(329 |
) |
- |
|
(329 |
) |
Geographic information:
|
|
2015 |
|
2014 |
|
External revenues |
|
|
|
|
|
Indonesia |
|
47,939 |
|
42,584 |
|
Foreign countries |
|
901 |
|
958 |
|
Sub-total |
|
48,840 |
|
43,542 |
|
The revenue information above is based on the location of the customers.
|
|
2015 |
|
2014 |
|
Non-current operating assets |
|
|
|
|
|
Indonesia |
|
99,658 |
|
96,127 |
|
Foreign countries |
|
1,199 |
|
1,145 |
|
Total |
|
100,857 |
|
97,272 |
|
Non-current operating assets for this purpose consist of property and equipment and intangible assets.
112
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
38. TELECOMMUNICATIONS SERVICE 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 in the Decree No. 15/PER/M.KOMINFO/4/2008 dated April 30, 2008 of the Ministry of Communication and Information (“MoCI”) concerning “Mechanism to Determine Tariff of Basic Telephony Services Connected through Fixed Line Network”.
Under the Decree, tariff structure for basic telephony services 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 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 No. 12/PER/M.KOMINFO/02/2006.
Under MoCI Decree No. 09/PER/M.KOMINFO/04/2008 dated April 7, 2008, the cellular tariffs of operating telecommunication services connected through mobile cellular network consist of the following:
· Basic telephony services tariff
· Roaming tariff, and/or
· Multimedia services tariff,
with the following traffic structure:
· Activation fee
· Monthly subscription charges
· Usage charges
· Additional facilities fee.
113
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
38. TELECOMMUNICATIONS SERVICE TARIFFS (continued)
c. Interconnection tariffs
The Indonesian Telecommunication Regulatory Body (“ITRB”), in its letter No. 262/BRTI/XII/2011 dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost basis with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all telecommunication provider operators.
Based on letter No.118/KOMINFO/DJPPI/PI.02.04/01/2014 dated January 30, 2014 of the Director General of Post and Informatics, the Director General of Post and Informatics decided to implement new interconnection tariff effective from February 1, 2014 until December 31, 2016, subject to evaluation on an annual basis. Pursuant to the Director General of Post and Informatics letter, the Company and Telkomsel are required to submit the Reference Interconnection Offer (“RIO”) proposal to ITRB to be evaluated.
Subsequently, ITRB in its letters No. 60/BRTI/III/2014 dated March 10, 2014 and No. 125/BRTI/IV/2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of RIO regarding the interconnection tariff.
d. Network lease tariffs
Through 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 Director General of Post and Telecommunication issued its 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.
114
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS
a. Capital expenditures
As of September 30, 2015, 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 Equivalent |
|
Rupiah |
|
- |
|
9,283, |
|
U.S. dollar |
|
402 |
|
5,895 |
|
Euro |
|
0.26 |
|
4 |
|
Total |
|
|
|
15,182 |
|
The above balance includes the following significant agreements
(i) The Company (continued)
Contracting parties |
Initial date of agreement |
Significant provisions of the agreement |
The Company and PT Industri Telekomunikasi Indonesia |
December 30, 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 JF DJAFA Consortium |
November 14, 2012 |
Procurement and installation agreement of OSP FTTH DIVA Regional II |
The Company and ASN-PT Lintas Consortium |
May 6, 2013 |
Procurement and installation agreement of Sulawesi Maluku Papua Cable System (SMPCS) project |
The Company and NEC Corp-PT NEC Indonesia Consortium |
May 28, 2013 |
Procurement and installation of SMPCS package-2 |
The Company and PT Cisco Technologies Indonesia |
November 14, 2013 |
The partnership for procurement and installation agreement of WIFI CISCO |
The Company and PT NEC Indonesia |
November 29, 2013 |
Procurement and installation agreement IP Radio for Backhaul Node-B Telkomsel Packet 3 Platform NEC |
The Company and PT Huawei Tech Investment |
March 13, 2014 |
Telkom-3 Substitution (T3S) Satellite System |
115
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
(i) The Company (continued)
Contracting parties |
Initial date of agreement |
Significant provisions of the agreement |
The Company and Thales Alenia Space France |
July 14, 2014 |
Telkom-3 Substitution (T3S) Satellite System |
The Company and Qnet Indonesia |
July 22, 2014 |
Procurement and installation of SKKL Broadband Network Division |
The Company and PT Huawei Tech Investment |
October 24, 2014 |
Procurement and installation Access Point Indonesia WIFI Platform Huawei |
Telkom Malaysia Berhad, Telin, Alcatel-Lucent Submarine Networks and NEC Corporation |
January 30, 2015 |
Procurement and installation Southeast Asia – Middle East – Western Europe 5 Cable System (SEA – ME - WE 5) |
(ii) Telkomsel
Contracting parties |
Initial date of agreement |
Significant provisions of the agreement |
Telkomsel, PT Ericsson Indonesia, Ericsson AB, PT Nokia Siemens Networks, NSN 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, NSN 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 Packet
Systems Indonesia and |
February 3, 2010 |
Maintenance and procurement of equipment and related service agreement for Next Generation Convergence IP RAN Rollout and Technical Support |
Telkomsel, PT Dimension Data Indonesia
and |
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, Amdocs Software Solutions Limited Liability Company and PT Application Solutions |
July 5, 2011 |
Development and Rollout agreement for Customer Relationship Management and Contact Center solutions |
116
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
(ii) Telkomsel (continued)
Contracting parties |
Initial date of agreement |
Significant provisions of the agreement |
Telkomsel and PT Ericsson Indonesia |
March 25, 2013 |
Technical Support Agreement (TSA) for the procurement of Gateway GPRS Support Node (“GGSN”) Service Complex agreement |
Telkomsel and Wipro Limited, Wipro Singapore Pte. Ltd. and PT WT Indonesia |
April 23, 2013 |
Development and procurement of OSDSS Solution agreement |
Telkomsel and PT Ericsson Indonesia |
October 22, 2013 |
Procurement of GGSN Service Complex Rollout agreement |
(iii) GSD
Contracting parties |
Initial date of agreement |
Significant provisions of the agreement |
TLT (Subsidiary of GSD) and PT Adhi Karya |
November 6, 2012 |
Service arrangement structure and main contractor architecture for Telkom Landmark Tower Building development project |
b. Borrowings and other credit facilities
(i) As of September 30, 2015, 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 |
|
350 |
|
March 14, 2016 |
|
Rp |
|
- |
|
87 |
|
|
|
|
|
|
|
|
US$ |
|
0 |
|
3 |
|
|
BNI |
|
250 |
|
March 31, 2016 |
|
Rp |
|
- |
|
79 |
|
|
|
|
|
|
|
|
US$ |
|
0 |
|
2 |
|
|
Bank Mandiri |
|
150 |
|
December 23, 2015 |
|
Rp |
|
- |
|
22 |
|
|
|
|
|
|
|
|
US$ |
|
0 |
|
3 |
|
|
Total |
|
750 |
|
|
|
|
|
|
|
196 |
|
|
117
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
b. Borrowings and other credit facilities (continued)
(ii) Telkomsel has a US$3 million bond and bank guarantee and standby letter of credit facilities with SCB, Jakarta. The facilities will expire on July 31, 2016. Under these facilities, as of September 30, 2015, Telkomsel has issued a bank guarantee of Rp20 billion (equivalent to US$1.4 million) for a 3G performance bond (Note 39c.i). The bank guarantee is valid until March 24, 2016.
Telkomsel has a Rp500 billion bank guarantee facilitiy with BRI. The facility will expire on March 25, 2016. Under this facility, as of September 30, 2015, Telkomsel has issued a bank guarantee of Rp317 billion (equivalent to US$22 million) as payment commitment guarantee for annual right of usage fee valid until March 31, 2016 and Rp20 billion (equivalent to US$1.4 million) for a 3G performance guarantee.
Telkomsel has a Rp150 billion bank guarantee facility with BCA. The facility will expire on April 15, 2016.
Telkomsel has also a Rp100 billion bank guarantee facility with BNI. The facility will expire on December 11, 2015. Telkomsel uses this facility to replace the time deposit required as guaranty for the USO program amounting to Rp53 billion (Note 39c.v).
(iii) TII has a US$15 million bank guarantee from Bank Mandiri. The facility expires on December 18, 2015. The outstanding bank guarantee facility as of September 30, 2015 amounting to US$10 million.
c. Others
(i) 3G license
With reference to the Decision Letters No. 07/PER/M.KOMINFO/2/2006, No. 268/KEP/M.KOMINFO/9/2009 and No. 191 year 2013 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.
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.
118
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(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 for bandwidths 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 above Decree, the Company and Telkomsel paid the first, second, third and forth year annual frequency usage fees in 2010, 2011, 2012 and 2013, respectively.
In order to maximize its business opportunities from the group synergy, the Company restructured its fixed wireless business unit by terminating the respective fixed wireless telecommunication network services and transferring the fixed wireless business and subscribers to Telkomsel. On June 27, 2014, the Company signed a Conditional Business Transfer Agreement with Telkomsel to transfer such business and subscribers to Telkomsel (Notes 5 and 36).
Based on Decision Letter No. 934 dated September 26, 2014, the MoCI approved the transfer of the Company’s frequency usage license on radio frequency spectrum of 800 MHz, specifically on spectrum of 880-887.5 MHz paired with 925-932.5 MHz, to Telkomsel, Telkomsel can use the radio frequency spectrum from the time the decision letter was issued.
During the transition period, the Company is still able to use the radio frequency spectrum of 880-887.5 MHz paired with 925-932.5 MHz until December 14, 2015.
Based on Decision Letters No. 940 dated September 26, 2014, MoCI determined that the fifth year (Y5), 2014, annual frequency usage fee of Telkomsel was Rp2,198 billion. The fee includes frequency usage fee transferred from Company to Telkomsel and was paid in December 2014.
The Company recorded a restructuring provision of Rp208 billion as of September 30, 2015. The provision relates to the benefits provided in “Upgrade Telkomflexi” program that was introduced to encourage Telkom Flexi subscribers to migrate to Telkomsel services. The program was publicly announced on October 3, 2014. The restructuring is expected to be completed not later than December 14, 2015.
On July 6, 2015, Telkomsel received Decision Letter No.644 Year 2015 dated June 30, 2015, of the MoCI, which replaced Decision Letter No.42 Year 2014 dated January 29, 2014, the MoCI granted Telkomsel the rights to provide:
(i) Mobile telecommunication services with radio frequency bandwidth in the 800 MHz, 900 MHz and 1800 MHz bands;
(ii) Mobile telecommunication services IMT-2000 with radio frequency bandwidth in the 2.1 GHz bands (3G); and
(iii) Basic telecommunication services
119
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
(iii) Future minimum lease payments of operating lease
The Group entered into non-cancelable lease agreements with both third and related parties. The lease agreements cover leased lines, telecommunication equipment and land and building with terms ranging from 1 to 10 years and with expiry dates between 2015 and 2024. Periods maybe extended based on the agreement by both parties.
Future minimum lease payments under the operating lease agreements as of September 30, 2015 are as follows:
|
|
Total |
|
Less than 1 year |
|
1-5 years |
|
More than 5 years |
|
As lessee |
|
29,819 |
|
3,767 |
|
11,384 |
|
14,668 |
|
As lessor |
|
3,549 |
|
994 |
|
1,923 |
|
632 |
|
(iv) 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 and Decree No.05/PER/M.KOMINFO/2/2007 dated February 28, 2007, the contribution was 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 was replaced by Decree No. 45 year 2012 of the MoCi which was effective from January 22, 2013. The latest Decree stipulates, among other things, the exclusion of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged, and changed the payment period which was previously on a quarterly basis to become quarterly or semi-annually.
120
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(iv) USO (continued)
Based on MoCI Decree No. 32/PER/M.KOMINFO/10/2008 dated October 10, 2008 (as amended by Decree No.03/PER/M.KOMINFO/2/2010 dated February 1, 2010) 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 to 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, North Sumatera, North Sulawesi, Gorontalo, Central Sulawesi, South Sulawesi and South East Sulawesi.
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, North Sulawesi, Central Sulawesi, Gorontalo, West Sulawesi, South East Sulawesi, Central Kalimantan, South Sulawesi, Papua and West Irian Jaya.
b. Telkomsel
On January 16 and 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. Accordingly, Telkomsel obtain local fixed-line licenses and the right to use radio frequency in the 2,390 MHz – 2,400 MHz bandwith.
Subsequently, in 2010 and 2011, the agreements with BTIP 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.
In January 2010, the MoCI 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 September 30, 2015, the USO program for packages 1, 2, 3, 6 and 7 ceased. On September 18, 2014, Telkomsel filed an arbitration claim with the Indonesia National Board of Arbitration for the settlement of the outstanding receivable from BPPPTI. As of September 30, 2015, the outstanding accounts receivable balance from those USO program amounted to Rp107.8 billion. As of the issuance date of approval and authorization for the issuance of the consolidated financial statements, the arbitration claim is still in process. f Arbitration for the settlement of the outstanding receivable from BPPPTI. As of June 30, 2015, the outstanding accounts receivable balance from those USO program amounted to Rp107.8 billion. As of the issuance date of approval and authorization for the issuance of the consolidated financial statements, the arbitration claim is still in process.
121
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(iv) USO (continued)
For nine months period ended September 30, 2015 and 2014, the Company and Telkomsel recognized the following amounts:
|
2015 |
|
2014 |
|
Revenues |
|
|
|
|
Construction |
- |
|
0 |
|
Operation of telecommunication service centre |
20 |
|
139 |
|
Profits |
|
|
|
|
Construction |
0 |
|
0 |
|
Operation of telecommunication service centre |
(209 |
) |
(74 |
) |
As of September 30, 2015 and December 31, 2014, the Company’s and Telkomsel’s trade receivables from the USO programs which are measured at amortized cost using the effective interest rate method amount to Rp663 billion and Rp655 billion, respectively (Notes 6 and 11).
(v) Trademark License Agreement
On June 23, 2014, TII signed an agreement with Mobile Telecommunication Company (Zain Saudi Arabia) for the telecommunications product and service trademark license agreement over a 5-year term has elapsed from the effective date. Subsequently, on November 7, 2014, TII signed an agreement with Al Lama Group for distributions and sales of SIM Card and exploration of other business opportunities in Saudi Arabia.
40. CONTINGENCIES
In the ordinary course of business, the Group has 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 Group has recognized provision for losses amounting to Rp25 billion as of September 30, 2015.
a. 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 amounts 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 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 filing of case by operators in various courts, the KPPU subsequently requested the Supreme Court (SC) to consolidate the cases into the 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. On May 27, 2015 Central Jakarta District Court decided to win the Company, Telkomsel and seven other local operators upon the case. On July 23, 2015 the KPPU filed a cassation to the Supreme Court relating to allegation of SMS Cartel Practices.
As of the date of approval and authorization for the issuance of the consolidated financial statements, there has not been any notification on the case from the SC
122
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
40. CONTINGENCIES (continued)
b. The Company is a defendant in a case filed in Makassar District Court by Andi Jindar Pakki and his affiliates over a land property at Jl. A.P. Pettarani. On May 8, 2013, the court pronounced its verdict and ordered the Company to pay fair compensation or to vacate and surrender the disputed land to the plaintiffs.
On May 20, 2013, the Company filed an appeal to the Makassar High Court, objecting to the District Court’s ruling. In December 2013, the Makassar High Court pronounced its verdict that was favorable to the plaintiffs and the Company filed an appeal to the Supreme Court. On January 9, 2015, the Company received the SC Notice No. 226/Pdt.G/2012/PN.Mks. regarding the case in which rejected the Company’s appeal. On February 5, 2015, the Company requested for a judicial review of the case by the SC.
As of the date of approval and authorization for the issuance of the consolidated financial statements, there has not been any notification on the case from the SC.
41. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows
|
|
September 30, 2015 |
|
||||||
|
|
U.S. dollar (in millions) |
|
Japanese yen (in millions) |
|
Others* (in millions) |
|
Rupiah equivalent (in billions) |
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
528.56 |
|
8.38 |
|
17.07 |
|
7.951 |
|
Other current financial assets |
|
30.47 |
|
- |
|
- |
|
446 |
|
Trade receivables |
|
|
|
|
|
|
|
|
|
Related parties |
|
1.40 |
|
- |
|
- |
|
20 |
|
Third parties |
|
106.32 |
|
- |
|
3.49 |
|
1,610 |
|
Other receivables |
|
0.32 |
|
- |
|
0.11 |
|
6 |
|
Advances and other non-current assets |
|
3.87 |
|
- |
|
0.04 |
|
58 |
|
Total assets |
|
670.94 |
|
8.38 |
|
20.71 |
|
10.091 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
Trade payables |
|
|
|
|
|
|
|
|
|
Related parties |
|
(1.61 |
) |
- |
|
(0.13 |
) |
(25 |
) |
Third parties |
|
(169.72 |
) |
(16.40 |
) |
(4.41 |
) |
(2.555 |
) |
Other payables |
|
(10.01 |
) |
(0.01 |
) |
(0.39 |
) |
(153 |
) |
Accrued expenses |
|
(35.80 |
) |
(83.02 |
) |
1.20 |
|
(516 |
) |
Advances from customers and suppliers |
|
0.89 |
|
- |
|
(0.05 |
) |
(14) |
|
Current maturities of long-term liabilities |
|
(28.71 |
) |
(767.90 |
) |
- |
|
(515 |
) |
Promissory notes |
|
(2.68 |
) |
- |
|
- |
|
(39 |
) |
Long-term liabilities - net of current maturities |
|
(196.93 |
) |
(6,527.13 |
) |
- |
|
(3,682 |
) |
Total liabilities |
|
(446.35, |
) |
(7,394.46 |
) |
(3.78 |
) |
(7,499 |
) |
Assets (Liabilities) - net |
|
224.59 |
|
(7,386.08 |
) |
16.93 |
|
(2.592 |
) |
* Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period.
123
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
41. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (continued)
|
|
December 31, 2014 |
|
||||||
|
|
U.S. dollar (in millions) |
|
Japanese yen (in millions) |
|
Others* (in millions) |
|
Rupiah equivalent (in billions) |
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
364.47 |
|
8.45 |
|
15.59 |
|
4,721 |
|
Other current financial assets |
|
15.50 |
|
- |
|
- |
|
193 |
|
Trade receivables |
|
|
|
|
|
|
|
|
|
Related parties |
|
2.05 |
|
- |
|
- |
|
26 |
|
Third parties |
|
72.88 |
|
- |
|
2.83 |
|
938 |
|
Other receivables |
|
0.39 |
|
- |
|
0.11 |
|
6 |
|
Advances and other non-current assets |
|
4.06 |
|
- |
|
0.05 |
|
52 |
|
Total assets |
|
459.35 |
|
8.45 |
|
18.58 |
|
5,936 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
Trade payables |
|
|
|
|
|
|
|
|
|
Related parties |
|
(0.21 |
) |
- |
|
(0.16 |
) |
(5 |
) |
Third parties |
|
(215.68 |
) |
(19.36 |
) |
(3.41 |
) |
(2,725 |
) |
Other payables |
|
(3.42 |
) |
- |
|
(1.15 |
) |
(57 |
) |
Accrued expenses |
|
(65.91 |
) |
(27.39 |
) |
(1.02 |
) |
(836 |
) |
Short-term bank loan |
|
(100.00 |
) |
- |
|
- |
|
(1,244 |
) |
Advances from customers and suppliers |
|
(2.41 |
) |
- |
|
(0.07 |
) |
(31 |
) |
Current maturities of long-term liabilities |
|
(34.60 |
) |
(767.90 |
) |
- |
|
(510 |
) |
Promissory notes |
|
(7.16 |
) |
- |
|
- |
|
(88 |
) |
Long-term liabilities - net of current maturities |
|
(71.00 |
) |
(6,911.08 |
) |
- |
|
(1,597 |
) |
Total liabilities |
|
(500.39 |
) |
(7,725.73 |
) |
(5.81 |
) |
(7,093 |
) |
Assets (Liabilities) - net |
|
(41.04 |
) |
(7,717.28 |
) |
12.77 |
|
(1,157 |
) |
* Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period.
The Group’s 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 Group reports monetary assets and liabilities in foreign currencies as of September 30, 2015 using the exchange rates on October 26, 2015, the unrealized foreign exchange loss amounted to Rp172 billion.
42. FINANCIAL RISK MANAGEMENT
1. Financial risk management
The Group’s activities expose it 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 Group’s financial risk management program is intended to minimize losses 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 on time deposit placements and hedging to cover foreign currency risk exposures for periods ranging from 3 up to 12 months.
Financial risk management is carried out by the Corporate Finance unit under policies approved by the Board of Directors. The Corporate Finance unit identifies, evaluates and hedges financial risks.
124
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
42. FINANCIAL RISK MANAGEMENT (continued)
1. Financial risk management (continued)
a. Foreign exchange risk
The Group is 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 Group’s exposures to other foreign exchange rates are not material.
Increasing risks of foreign currency exchange rates on the obligations of the Group are expected to be offset by the effects of the exchange rates on time deposits and receivables in foreign currencies that are equal to at least 25% of the outstanding current foreign currency liabilities.
The following table presents the Group’s financial assets and financial liabilities exposure to foreign currency risk:
|
September 30, 2015 |
|
December 31, 2014 |
|
||||
|
U.S. dollar (in billions) |
|
Japanese yen (in billions) |
|
U.S. dollar (in billions) |
|
Japanese yen (in billions) |
|
Financial assets |
0.67 |
|
0.01 |
|
0.46 |
|
0.01 |
|
Financial liabilities |
(0.45 |
) |
(7.40 |
) |
(0.50 |
) |
(7.73 |
) |
Net exposure |
0.22 |
|
(7.39 |
) |
(0.04 |
) |
(7.72 |
) |
Sensitivity analysis
A strengthening of the U.S.dollar and Japanese yen, as indicated below, against the rupiah at September 30, 2015 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 Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant..
|
Equity/loss |
|
September 30, 2015 |
|
|
U.S. dollar (1% strengthening) |
32 |
|
Japanese yen (5% strengthening) |
(45 |
) |
A weakening of the U.S.dollar and Japanese yen against the rupiah at September 30, 2015 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.
b. Market price risk
The Group is 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 Group’s available-for-sale investments is monitored periodically, together with a regular assessment of their relevance to the Group’s long-term strategic plans.
As of September 30, 2015, management considered the price risk for the Group’s 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.
125
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
42. FINANCIAL RISK MANAGEMENT (continued)
c. Interest rate risk
Interest rate fluctuation is monitored to minimize any negative impact to financial performance. Borrowings at variable interest rates expose the Group to interest rate risk (Notes 16, 17, 18, 19 and 20). To measure market risk pertaining to fluctuations in interest rates, the Group primarily uses 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 Group’s interest-bearing borrowings was as follows:
|
September 30, 2015 |
|
December 31, 2014 |
|
Fixed rate borrowings |
(16,831 |
) |
(10,113 |
) |
Variable rate borrowings |
(18,166 |
) |
(13,339 |
) |
Sensitivity analysis for variable rate borrowings
As of September 30, 2015, a decrease (increase) by 25 basis points in interest rates of variable rate borrowings would have increased (decreased) equity and profit or loss by Rp45 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 Group’s financial assets:
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
Cash and cash equivalents |
26,264 |
|
17,672 |
|
Other current financial assets |
2,997 |
|
2,797 |
|
Trade and other receivables, net |
9,870 |
|
7,380 |
|
Advances and other non-current assets |
535 |
|
546 |
|
Total |
39,666 |
|
28,395 |
|
The Group is exposed to credit risk primarily from trade and other receivables. The credit risk is managed by continuous monitoring of outstanding balances and collection.
Trade and other receivables do not have any major concentration risk whereas no customer receivable balances exceed 4% of trade receivables of September 30, 2015.
Management is confident in its ability to continue to control and sustain minimal exposure to credit risk given that the Group has recognized 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 Group has difficulties in fulfilling financial liabilities when they become due.
126
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
Table of Contents
42. FINANCIAL RISK MANAGEMENT (continued)
e. Liquidity risk (continue)
Prudent liquidity risk management implies maintaining sufficient cash in order to meet the Group’s financial obligations. The Group continuously performs an analysis to monitor financial position ratios, such as liquidity ratios and debt-to-equity ratios, against debt covenant requirements.
The following is the maturity profile of the Group’s financial liabilities:
|
|
Carrying amount |
|
Contractual cash flows |
|
2015 |
|
2016 |
|
2017 |
|
2018 |
|
2019 and thereafter |
|
September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
13,500 |
|
(13,500 |
) |
(13,500 |
) |
- |
|
- |
|
- |
|
- |
|
Accrued expenses |
|
8,128 |
|
(8,128 |
) |
(8,128 |
) |
- |
|
- |
|
- |
|
- |
|
Loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans |
|
19,069 |
|
(23,898 |
) |
(5,544 |
) |
(1,340 |
) |
(3,919 |
) |
(8,418 |
) |
(4,677 |
) |
Bonds and notes |
|
9,560 |
|
(21,198 |
) |
(1,039 |
) |
(258 |
) |
(1,017 |
) |
(1,012 |
) |
(17,872 |
) |
Obligations unde finance leases |
|
4,694 |
|
(6,281 |
) |
(1,011 |
) |
(253 |
) |
(971 |
) |
(904 |
) |
(3,142 |
) |
Two-step loans |
|
1,674 |
|
(1,986 |
) |
(307 |
) |
(109 |
) |
(293 |
) |
(258 |
) |
(1,019 |
) |
Total |
|
56,625 |
|
(74,991 |
) |
(29,529 |
) |
(1,960 |
) |
(6,200 |
) |
(10,592 |
) |
(26,710 |
) |
|
|
Carrying amount |
|
Contractual cash flows |
|
2014 |
|
2015 |
|
2016 |
|
2017 |
|
2018 and thereafter |
|
|
December 31, 2014 (Restated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
12,476 |
|
(12,476 |
) |
(12,476 |
) |
- |
|
- |
|
- |
|
- |
|
|
Accrued expenses |
|
5,211 |
|
(5,211 |
) |
(5,211 |
) |
- |
|
- |
|
- |
|
- |
|
|
Loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans |
|
13,740 |
|
(16,468 |
) |
(6,830 |
) |
(3,172 |
) |
(2,552 |
) |
(2,099 |
) |
(1,815) |
|
|
Obligations under finance leases |
|
4,789 |
|
(6,535 |
) |
(975 |
) |
(927 |
) |
(898 |
) |
(830 |
) |
(2,905 |
) |
|
Bonds and notes |
|
3,308 |
|
(4,673 |
) |
(1,370 |
) |
(251 |
) |
(229 |
) |
(228 |
) |
(2,595 |
) |
|
Two-step loans |
|
1,615 |
|
(1,944 |
) |
(282 |
) |
(274 |
) |
(264 |
) |
(230 |
) |
(894 |
) |
|
Total |
|
41,139 |
|
(47,307) |
|
(27,144) |
|
(4,624 |
) |
(3,943 |
) |
(3,387 |
) |
(8,209) |
|
|
The difference between the carrying amount and the contractual cash flows is interest value.
1. 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, in an arm’s length transaction.
The Group 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, accrued expenses, and short-term bank loans), long-term investments, advances and other non-current assets are considered to approximate their carrying amounts as the impact of discounting is not significant.
127
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
Table of Contents
42. FINANCIAL RISK MANAGEMENT (continued)
2. Fair value of financial assets and financial liabilities (continued)
a. Fair value measurement (continued)
(ii) The fair values of long-term financial asssets and financial liabilities (other non-current assets (long-term receivables and restricted cash) and liabilities) approximate their carrying amounts as they were measured based on the discounted future contractual cash flows.
(iii) Available-for-sale financial assets primarily consist 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.
(iv) 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 Group for similar liabilities of comparable maturities by the bankers of the Group, 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 Group 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 Group's financial assets and liabilities based on their classifications, other than those with carrying amounts that are reasonable approximation of fair values:
|
|
September 30, 2015 |
|
||||||||||
|
|
Trading |
|
Loans and receivables |
|
Available for sale |
|
Other financial liabilities |
|
Total carrying amount |
|
Fair value |
|
Cash and cash equivalents |
|
26,264 |
|
- |
|
- |
|
- |
|
26,264 |
|
26,264 |
|
Other current financial assets |
|
2,834 |
|
- |
|
163 |
|
- |
|
2,997 |
|
2,997 |
|
Trade and other receivables, net |
|
9,870 |
|
- |
|
- |
|
- |
|
9,870 |
|
9,870 |
|
Advances and other non-current assets |
|
535 |
|
- |
|
- |
|
- |
|
535 |
|
535 |
|
Total financial assets |
|
39,503 |
|
- |
|
163 |
|
- |
|
39,666 |
|
39,666 |
|
Trade and other payables |
|
- |
|
- |
|
- |
|
(13,500 |
) |
(13,500 |
) |
(13,500 |
) |
Accrued expenses |
|
- |
|
- |
|
- |
|
(8,128 |
) |
(8,128 |
) |
(8,128 |
) |
Loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank loans |
|
- |
|
- |
|
- |
|
(427 |
) |
(427 |
) |
(427 |
) |
Long-term bank loans |
|
- |
|
- |
|
- |
|
(18,642 |
) |
(18,642 |
) |
(18,768 |
) |
Obligation under finance lease |
|
- |
|
- |
|
- |
|
(4,694 |
) |
(4,694 |
) |
(4,694 |
) |
Bonds and notes |
|
- |
|
- |
|
- |
|
(9,560 |
) |
(9,560 |
) |
(9,290 |
) |
Two-step loans |
|
- |
|
- |
|
- |
|
(1,674 |
) |
(1,674 |
) |
(1,705 |
) |
Total financial liabilities |
|
- |
|
- |
|
- |
|
(56,625 |
) |
(56,625 |
) |
(56,512 |
) |
|
|
December 31, 2014 (Restated) |
|
||||||||||
|
|
Trading |
|
Loans and receivables |
|
Available for sale |
|
Other financial liabilities |
|
Total carrying amount |
|
Fair value |
|
Cash and cash equivalents |
|
- |
|
17,672 |
|
- |
|
- |
|
17,672 |
|
17,672 |
|
Other current financial assets |
|
- |
|
2,543 |
|
254 |
|
- |
|
2,797 |
|
2,797 |
|
Trade and other receivables, net |
|
- |
|
7,380 |
|
- |
|
- |
|
7,380 |
|
7,380 |
|
Advances and other non-current assets |
|
- |
|
546 |
|
- |
|
- |
|
546 |
|
546 |
|
Total financial assets |
|
- |
|
28,141 |
|
254 |
|
- |
|
28,395 |
|
28,395 |
|
128
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
42. FINANCIAL RISK MANAGEMENT (continued)
2. Fair value of financial assets and financial liabilities (continued)
b. Classification and fair value (continued)
|
December 31, 2014 |
|
||||||||||
|
Trading |
|
Loans and receivables |
|
Available for sale |
|
Other financial liabilities |
|
Total carrying amount |
|
Fair value |
|
Trade and other payables |
- |
|
- |
|
- |
|
(12,476 |
) |
(12,476 |
) |
(12,476 |
) |
Accrued expenses |
- |
|
- |
|
- |
|
(5,211 |
) |
(5,211 |
) |
(5,211 |
) |
Loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank loans |
- |
|
- |
|
- |
|
(1,810 |
) |
(1,810 |
) |
(1,810 |
) |
Long-term bank loans |
- |
|
- |
|
- |
|
(11,930 |
) |
(11,930 |
) |
(11,787 |
) |
Obligation under finance lease |
- |
|
- |
|
- |
|
(4,789 |
) |
(4,789 |
) |
(4,789 |
) |
Bonds and notes |
- |
|
- |
|
- |
|
(3,308 |
) |
(3,308 |
) |
(3,355 |
) |
Two-step loans |
- |
|
- |
|
- |
|
(1,615 |
) |
(1,615 |
) |
(1,650 |
) |
Total financial liabilities |
- |
|
- |
|
- |
|
(41,139 |
) |
(41,139 |
) |
(41,078) |
|
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:
|
|
September 30, 2015 |
|
||||||
c |
|
|
|
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 |
|
260 |
|
55 |
|
205 |
|
- |
|
Fair value to profit or loss securities |
|
290 |
|
- |
|
- |
|
290 |
|
Total |
|
550 |
|
55 |
|
205 |
|
290 |
|
|
|
December 31, 2014 |
|
||||||
|
|
|
|
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 |
|
254 |
|
52 |
|
202 |
|
- |
|
Fair value to profit or loss securities |
|
290 |
|
- |
|
- |
|
290 |
|
Total |
|
544 |
|
52 |
|
202 |
|
290 |
|
129
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
42. FINANCIAL RISK MANAGEMENT (continued)
2. Fair value of financial assets and financial liabilities (continued)
c. Fair value hierarchy (continued)
Available-for-sale financial assets primarily consist of 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.
Financial asset at fair value through profit or loss represens the Put Option on the 20% remaining ownership in Indonusa which was received as part of the divestment considerations. Since the fair value is not observable and valuation technique is used to determine the fair value, this financial asset is classified as level 3.
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 and put option 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 balances for items measured at fair value using significant unobservable inputs (level 3) as of September 30, 2015 and 2014 are as follows:
|
|
2015 |
|
2014 |
|
Balance at January 1 |
|
290 |
|
297 |
|
Purchases |
|
- |
|
- |
|
Included in consolidated statement of comprehensive Income |
|
- |
|
- |
|
Realized loss - recognized in profit or loss |
|
- |
|
- |
|
Unrealized loss - recognized in other comprehensive income |
|
- |
|
- |
|
Redemption |
|
- |
|
- |
|
Balance at June 30 |
|
290 |
|
297 |
|
43. CAPITAL MANAGEMENT
The capital structure of the Group is as follows:
|
|
September 30, 2015 |
|
December 31, 2014 (Restated) |
|
||||
|
|
Amount |
|
Portion |
|
Amount |
|
Portion |
|
Short-term debts |
|
427 |
|
0.40% |
|
1,810 |
|
1.98% |
|
Long-term debts |
|
34,570 |
|
32.68% |
|
21,642 |
|
23.72% |
|
Total debts |
|
34,997 |
|
33.08% |
|
23,452 |
|
25.70% |
|
Equity attributable to owners |
|
70,791 |
|
66.92% |
|
67,816 |
|
74.30% |
|
Total |
|
105,788 |
|
100.00% |
|
91,268 |
|
100.00% |
|
130
`
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2015 and for the Nine Months Period Then Ended (Unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
43. CAPITAL MANAGEMENT (continued)
The Group objectives when managing capital are to safeguard the Group ability to continue as a going concern in order to provide returns for stockholders and benefits to other stakeholders and to maintain an optimum capital structure to minimize the cost of capital.
Periodically, the Group conducts debt valuation to assess possibilities of refinancing existing debts with new ones, which have more efficient cost that will lead to more optimized cost-of-debt. In case of idle cash with limited investment opportunities, the Group will consider buying back its shares of stock or paying dividend to its stockholders.
In addition to complying with loan covenants, the Group also maintains its capital structure at the level it believes will not risk its credit rating and which 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 Group capital structure and review the effectiveness of the Group’s debts. The Group 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 ratio is comparable or better than that of regional area entities in the telecommunications industry.
The Group’s debt-to-equity ratio as of September 30, 2015 and December 31, 2014 is as follows:
|
|
September 31, 2015 |
|
December 31, 2014 (Restated) |
|
Total interest-bearing debts |
|
34,997 |
|
23,452 |
|
Less: cash and cash equivalents |
|
(26,264 |
) |
(17,672 |
) |
Net debts |
|
8,733 |
|
5,780 |
|
Total equity attributable to owners |
|
70,791 |
|
67,816 |
|
Net debt-to-equity ratio |
|
12.34% |
|
8.52% |
|
As stated in Note 18, 19 and 20, the Group is required to maintain a certain debt-to-equity ratio and debt service coverage ratio by the lenders. During the six months period ended September 30, 2015 and for the year ended December 31, 2014, the Company has complied with the externally imposed capital requirements.
44. SUPPLEMENTAL CASH FLOWS INFORMATION
The non-cash investing activities for the years ended September 30, 2015 and 2014 are as follows:
|
|
September 30, 2015 |
|
September 30, 2014 |
|
Acquisition of property and equipment credited to: |
|
|
|
|
|
Trade payables |
|
4,045 |
|
7,523 |
|
Obligations under finance leases |
|
554 |
|
372 |
|