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GENERAL
12 Months Ended
Dec. 31, 2021
GENERAL  
GENERAL

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2020 and 2021

For Each of the Three Years in Period Ended December 31, 2021

(Amounts in the tables expressed in billion of Indonesian 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 which 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 23).

The Company was established based on notarial deed No. 128 dated September 24, 1991 of Imas Fatimah, S.H. The deed of establishment was approved by the 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 Company's Articles of Association have been amended several times, the latest amendments made is in relation to:

i.The implementation of the Financial Services Authority Regulation No. 15/POJK.04/2020 on The Planning and Holding of the General Meetings of Public Companies.
ii.The Company’s need to make adjustments to the Articles of Association with the provisions in the Financial Services Authority Regulation No. 16/POJK.04/2020 on The Implementation of Public Companies’ Shareholders’ General Meetings Electronically and No. 14/POJK.04/2019 on Addition to Capital of Listed Companies by Granting Pre-emptive Rights.
iii.The Company’s need to make adjustments to its business activities in the Articles of Association with the Standard Classification of Indonesian Business Fields in 2020.

Amendments to the Articles of Association as stated in the Notary Deed of Ashoya Ratam, S.H., M.Kn. No. 35 dated June 18, 2021, the amendment has been received and approved by the Minister of Law and Human Rights of the Republic of Indonesia (“MoLHR”) based on letter No. AHU-AH.01.03-0426883 dated July 9, 2021, concerning Acceptance of Notification of Amendment to the Company's Articles of Association (Persero) PT Telekomunikasi Indonesia Tbk. and the Decree of the MoLHR No. AHU-0038942.AH.01.02, 2021 dated July 9, 2021, concerning Approval of Amendment to the Articles of Association of the Limited Liability Company (Persero) PT Telekomunikasi Indonesia Tbk.

In accordance with Article 3 of the Company’s Articles of Association, the scope of its activities is to provide telecommunication network and telecommunication and information services, and to optimize the Company’s resources to provide high quality and competitive goods and/or services to gain/pursue profit in order to increase the value of the Company by applying the Limited Liability Company principle. In regard to achieving its objectives, the Company is involved in the following activities:

i.   Main business:

(a)  Planning, building, providing, developing, operating, marketing or selling or leasing, and maintaining telecommunications and information networks in a broad sense in accordance with prevailing laws and regulations.

​

(b)  Planning, developing, providing, marketing or selling, and improving telecommunications and information services in a broad sense in accordance with prevailing laws and regulations.

(c)  Investing including in the form of equity capital in other companies in line with and to achieve the purposes and objectives of the Company.

ii.   Supporting business:

(a)Providing payment transactions and money transferring services through telecommunications and information networks.
(b)Performing other activities and 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 movable assets, information systems, education and training, and repairs and maintenance facilities.
(c)Collaborating with other parties in order to optimize the information, communication or technology resources owned by other parties as service provider in information, communication and technology industry, as to achieve the purposes and objectives of the Company.

The Company’s head office is located at Jalan Japati No. 1, Bandung, West Java.

The Company was granted several networks and/or services provision licenses by the Government which are valid for an unlimited period of time as long as the Company complies with prevailing laws and regulations and fulfills the obligation stated in those licenses. For every license issued by the Ministry of Communication and Information (“MoCI”), an evaluation is performed annually and an overall evaluation is performed every 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, numbers of customers, license payment, and universal service contribution, while for internet telephone services for public purpose, internet interconnection service, and internet access service, there is additional information required such as operational performance, customer segmentation, traffic, and gross revenue.

Details of these licenses are as follows:

​

​

​

​

​

​

​

​

License

    

License No.

    

Type of services

    

Grant date/latest
renewal date

License of electronics money issuer

​

Bank Indonesia License

No. 11/432/DASP

​

Electronics money

​

July 3, 2009

License of money remittance

​

Bank Indonesia License

No. 11/23/bd/8

​

Money remittance service

​

August 5, 2009

License to operate internet telephone services for public purpose

​

127/KEP/DJPPI/

KOMINFO/3/2016

​

Internet telephone services for public purpose

​

March 30, 2016

License to operate internet service provider

​

2176/KEP/M.KOMINFO/

12/2016

​

Internet service provider

​

December 30, 2016

License to operate content service provider

​

1040/KEP/M.KOMINFO/

16/2017

​

Content service provider

​

May 16, 2017

License for the implementation of internet interconnection services

​

1004/KEP/M.KOMINFO/

2018

​

Interconnection services

​

December 26, 2018

License to operate data communication system services

​

046/KEP/M.KOMINFO/

02/2020

​

Data communication system services

​

August 3, 2020

License to operate circuit switched based local fixed line network

​

449/KEP/M.KOMINFO/

02/2020

​

Circuit switched based local fixed line network

​

September 22, 2020

License to operate IPTV service provider

​

022/KEP/M.KOMINFO/

2021

​

IPTV service provider

​

February 25, 2021

License to operate fixed network long distance direct line

​

073/KEP/M.KOMINFO/02/

2021

​

Fixed network long distance direct line

​

August 23, 2021

License to operate fixed international network

​

082/KEP/M.KOMINFO/

02/2021

​

Fixed international and basic telephone services network

​

October 8, 2021

License to operate fixed closed network

​

094/KEP/M.KOMINFO/

02/2021

​

Fixed closed network

​

December 9, 2021

​

b.   Company’s Board of Commissioners, Directors, Audit Committee, Corporate Secretary, and Internal Audit

i.     Board of Commissioners and Directors

Based on resolutions made at AGM of Stockholders of the Company as covered by notarial deed No. 34 and No. 12 of Ashoya Ratam., S.H., M.Kn., dated June 18, 2021 and July 10, 2020, the composition of the Company’s Boards of Commissioners and Directors as of December 31 2020 and 2021, respectively, were as follows:

​

​

​

​

​

​

​

    

2020

    

2021

President Commissioner/ Independent Commissioner

​

Rhenald Kasali

​

Bambang Permadi Soemantri Brojonegoro

Commissioner

​

Alex Denni

​

Arya Mahendra Sinulingga

Commissioner

​

Rizal Mallarangeng

​

Rizal Mallarangeng

Commissioner

​

Ahmad Fikri Assegaf

​

Isa Rachmatarwata

Commissioner

​

Ismail

​

Ismail

Commissioner

​

Marcelino Rumambo Pandin

​

Marcelino Rumambo Pandin

Independent Commissioner

​

Marsudi Wahyu Kisworo

​

Bono Daru Adji

Independent Commissioner

​

Wawan Iriawan

​

Wawan Iriawan

Independent Commissioner

​

Chandra Arie Setiawan

​

Abdi Negara Nurdin

President Director

​

Ririek Adriansyah

​

Ririek Adriansyah

Director of Finance and Risk Management*

​

Heri Supriadi

​

Heri Supriadi

Director of Digital Business

​

Muhammad Fajrin Rasyid

​

Muhamad Fajrin Rasyid

Director of Strategic Portfolio

​

Budi Setyawan Wijaya

​

Budi Setyawan Wijaya

Director of Enterprise and Business Service

​

Edi Witjara

​

Edi Witjara

Director of Wholesale and International Services

​

Dian Rachmawan

​

Bogi Witjaksono

Director of Human Capital Management

​

Afriwandi

​

Afriwandi

Director of Network, Information Technology and Solution

​

Herlan Wijanarko

​

Herlan Wijanarko

Director of Consumer Service

​

FM Venusiana R

​

FM Venusiana R

*

The nomenclature of the Director of Finance and Risk Management was determined at the AGM for the year 2020, changing the previous nomenclature, the Director of Finance.

​

ii.    Audit Committee, Corporate Secretary, and Internal Audit

The composition of the Company’s Audit Committee, Corporate Secretary, and Internal Audit as of December 31, 2020 and 2021, were as follows:

​

​

​

​

​

​

​

    

2020

    

2021

Chairman

​

Chandra Arie Setiawan

​

Bono Daru Adji

Member

​

Marsudi Wahyu Kisworo

​

Bambang Permadi Soemantri Brojonegoro

Member

​

Wawan Iriawan

​

Wawan Iriawan

Member

​

Marcelino Rumambo Pandin

​

Abdi Negara Nurdin

Member

​

Emmanuel Bambang Suyitno

​

Emmanuel Bambang Suyitno

Member

​

Sarimin Mietra Sardi

​

Edy Sihotang

Member

​

Ahmad Fikri Assegaf

​

—

Corporate Secretary

​

Andi Setiawan

​

Andi Setiawan

Internal Audit

​

Harry Suseno Hadisoebroto

​

Harry Suseno Hadisoebroto

​

c.    Public offering of securities of the Company

The Company's shares are listed and traded on the Indonesia Stock Exchange (IDX) and the New York Stock Exchange (NYSE) since November 14, 1995.

On June 16, 2015, the Company issued Continuous Bonds 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, with a ten-year period, Rp1,200 billion for Series C, with a fifteen-year period and Rp1,500 billion for Series D, with a thirty-year period, respectively which are listed on the IDX (Note 21b.(i)).

​

d.   Subsidiaries

As of December 31, 2020 and 2021, the Company has consolidated the following directly or indirectly owned subsidiaries (Notes 2b and 2d):

i.  Direct subsidiaries:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year of

​

​

​

​

​

​

​

​

Subsidiary/place of

​

​

​

commencement

​

Percentage of ownership*

​

Total assets before elimination

incorporation

   

Nature of business

   

operations

   

2020

   

2021

   

2020

   

2021

PT Telekomunikasi Seluler ("Telkomsel"), Jakarta, Indonesia

​

Mobile telecommunication networks and service businesses, web portals, web hosting, mobile digital advertising, telecommunication consultant services, data processing activities, financial technology

 

1995

 

65

 

65

 

102,187

 

100,113

PT Dayamitra Telekomunikasi (“Mitratel”), Jakarta, Indonesia

​

Leasing of towers and other telecommunication services

 

1995

 

100

 

72

 

26,613

 

57,699

PT Multimedia Nusantara ("Metra"), Jakarta, Indonesia

​

Network telecommunication services and multimedia

 

1998

 

100

 

100

 

17,946

 

18,748

PT Telekomunikasi Indonesia International (“Telin”), Jakarta, Indonesia

​

Telecommunication

 

1995

 

100

 

100

 

12,182

 

10,139

PT Graha Sarana Duta (“GSD”), Jakarta, Indonesia

​

Leasing of offices and providing building management and maintenance services, civil consultant and developer

 

1982

 

100

 

100

 

6,148

 

5,881

PT Telkom Satelit Indonesia ("Telkomsat"), Jakarta, Indonesia

​

Telecommunication - provides satellite communication system, and the related services and infrastructures

 

1996

 

100

 

100

 

5,092

 

5,511

PT Telkom Akses ("Telkom Akses"), Jakarta, Indonesia

​

Construction, service and trading in the field of telecommunication

 

2013

 

100

 

100

 

4,336

 

4,973

PT Metra-Net (“Metra-Net”), Jakarta, Indonesia

​

Multimedia portal service

 

2009

 

100

 

100

 

1,320

 

1,640

PT PINS Indonesia (“PINS”), Jakarta, Indonesia

​

Telecommunication construction and services

 

1995

 

100

 

100

 

1,864

 

1,589

PT Infrastruktur Telekomunikasi Indonesia (“Telkom Infra”), Jakarta, Indonesia

​

Construction, service and trading in the field of telecommunication

 

2014

 

100

 

100

 

1,074

 

1,259

PT Sigma Tata Sadaya (“STS”)** Jakarta, Indonesia

​

Computer software and hardware trading and services

​

1996

​

100

​

100

​

0

​

2,107

PT Napsindo Primatel Internasional (“Napsindo”), Jakarta, Indonesia

​

Telecommunication - provides Network Access Point ("NAP"), Voice Over Data ("VOD"), and other related services

 

1999; ceased operations on January 13, 2006

 

60

 

60

 

5

 

5

*   Percentage of ownership amounting to 99.99% is presented with rounding of 100%.

**  Previously was indirect subsidiary.

​

ii.   Indirect subsidiaries:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year of

​

​

​

​

​

​

​

​

Subsidiary/place of

​

​

​

commencement

​

Percentage of ownership*

​

Total assets before elimination

incorporation

   

Nature of business

   

operations

   

2020

   

2021

   

2020

   

2021

PT Metra Digital Investama (“MDI”), Jakarta, Indonesia

​

Trading and/or providing service related to information and technology, multimedia, entertainment and investments

 

2013

 

100

 

100

 

3,461

 

5,784

PT Sigma Cipta Caraka (“Sigma”), Tangerang, Indonesia

​

Information technology service - system implementation and integration service, outsourcing and software license maintenance

 

1988

 

100

 

100

 

6,008

 

5,054

Telekomunikasi Indonesia International Pte. Ltd., ("Telin Singapore"), Singapore

​

Telecommunication

​

2008

​

100

​

100

​

3,320

​

3,272

Telekomunikasi Indonesia International Ltd., ("Telin Hong Kong"), Hong Kong

​

Telecommunication

 

2010

 

100

 

100

 

2,652

 

2,998

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

 

1984

 

100

 

100

 

2,387

 

2,350

PT Telkom Landmark Tower (“TLT”), Jakarta, Indonesia

​

Property development and management services

​

2012

​

55

​

55

​

2,204

​

2,204

PT Finnet Indonesia (“Finnet”), Jakarta, Indonesia

​

Information technology services

 

2006

 

60

 

60

 

1,371

 

1,294

PT Metra Digital Media (“MD Media”), Jakarta, Indonesia

​

Directory information services

 

2013

 

100

 

100

 

1,121

 

1,207

PT Melon Indonesia (“Melon”), Jakarta, Indonesia

​

Digital content exchange hub services

 

2010

 

100

 

100

 

848

 

1,187

PT Persada Sokka Tama ("PST"), Jakarta, Indonesia

​

Providing telecommunication network infrastucture

 

2008

 

95

 

100

 

830

 

1,097

Telekomunikasi Indonesia International S.A. (“Telkomcel”) S.A., Dili, Timor Leste

​

Telecommunication

 

2012

 

100

 

100

 

719

 

708

PT Telkomsel Mitra Inovasi ("TMI"), Jakarta, Indonesia

​

Business management consulting and capital venture services

 

2019

 

100

 

100

 

594

 

692

TS Global Network Sdn. Bhd. ("TSGN"), Petaling Jaya, Malaysia

​

Satellite service

 

1996

 

70

 

70

 

664

 

596

PT Administrasi Medika (“Ad Medika”), Jakarta, Indonesia

​

Health insurance administration services

 

2002

 

100

 

100

 

479

 

543

PT Swadharma Sarana Informatika ("SSI"), Jakarta, Indonesia

​

Cash replenishment services and ATM maintenance

 

2001

 

51

 

51

 

576

 

485

PT Digital Aplikasi Solusi (“Digiserve”), previously PT Teltranet Aplikasi Solusi Jakarta, Indonesia

​

Communication system services

​

2014

​

49

​

100

​

320

​

389

PT Nusantara Sukses Investasi ("NSI"), Jakarta, Indonesia

​

Service and trading

 

2014

 

100

 

100

 

316

 

309

PT Graha Yasa Selaras (“GYS”), Jakarta, Indonesia

​

Tourism service

 

2012

 

51

 

51

 

289

 

288

PT Nutech Integrasi ("Nutech"), Jakarta, Indonesia

​

System integrator

 

2001

 

60

 

60

 

136

 

198

PT Telkomsel Ekosistem Digital ("TED"), Jakarta, Indonesia

​

Providing service related to information and technology, multimedia, entertainment, and investment

​

2021

​

—

​

100

​

—

​

197

Telekomunikasi Indonesia International (USA) Inc. (“Telin USA”), Los Angeles, USA

​

Telecommunication

​

2014

​

100

​

100

​

115

​

191

PT Metraplasa (“Metraplasa”), Jakarta, Indonesia

​

Network and e-commerce services

 

2012

 

60

 

60

 

260

 

61

Telekomunikasi Indonesia International (Australia) Pty. Ltd. (“Telin Australia”), Sydney, Australia

​

Telecommunication

 

2013

 

100

 

100

 

88

 

34

Telekomunikasi Indonesia Intl (Malaysia) Sdn. Bhd. (“Telin Malaysia”), Malaysia

​

Telecommunication

 

2013

 

70

 

70

 

39

 

27

PT Satelit Multimedia Indonesia (“SMI”), Jakarta, Indonesia

​

Satellite services

 

2013

 

100

 

100

 

16

 

10

*  Percentage of ownership amounting to 99.99% is presented with rounding of 100%.

e.   Initial public offering and acquisition transactions in subsidiaries

i.    Mitratel

Based on the Deed of Decision of the Shareholders Outside the General Meeting of Shareholders (Circular) No. 31 dated August 21, 2021 from Notary Ashoya Ratam, S.H., M.Kn. the shareholders of Mitratel decided and approved the change of Mitratel’s status from a private company to a public company under the name PT Dayamitra Telekomunikasi Tbk.

On November 12, 2021, Mitratel received an effective statement from the Financial Services Authority (“OJK”) with its letter No. S-201/D.04/2021 to conduct an initial public offering (“IPO”) of 23,493,524,800 ordinary shares with a par value of Rp228 per share and an offering price of Rp800 per share. On November 22, 2021, the Mitratel’s shares have been listed on the Indonesia Stock Exchange (“IDX”) based on Letter No. S-08617/BEI.PP3/11-2021 regarding Approval of Securities Listing dated November 15, 2021.

Mitratel obtained IPO funds amounting to Rp18,463 billion (after deducting share issuance costs), so that the Company’s share ownership in Mitratel diluted from 99.99% to 71.87%. Hence, the Company still controls Mitratel.

For this transaction the Company has been accounted the difference in non-controlling ownership transactions are as follows:

​

​

​

​

​

​

Proceeeds from IPO of 28.13% ownership interest

    

18,463

Net assets attributable to NCI

 

(9,375)

Increase in equity attributable to parent company

 

9,088

​

​

ii.    Metra

On 29 August 2014, Metra and Telstra Holding Singapore Pte. Ltd. established PT Teltranet Application Solutions (“Teltranet”). Metra's share ownership in Teltranet is 51%, Metra has no control in determining the financial and operating policies of Teltranet, recorded as ownership in associates.

Based on the Share Purchase Agreement dated August 31, 2021, Metra purchased Teltranet's shares owned by Telstra Holdings Singapore Pte. Ltd. as many as 13,115,477 shares or equivalent to 49% share ownership with an acquisition value of AU$1, thus becoming a subsidiary of Metra.

As of December 31, 2021, Metra has recorded the difference between the acquisition value and fair value, goodwill recognized amounted to Rp64 billion (Note 16).

iii.    STS

STS previously was Sigma’s subsidiary. Based on notarial deed No. 388 dated December 27, 2021 of Jimmy Tanal, S.H., M.Kn., the Company entered into a takeover of STS shares, so that the Company's ownership in STS became 99.89% and impacted Sigma’s ownership which diluted to 0.11%. The company purchased 2,106,465,158,910 series B shares of STS or equivalent to Rp2,106 billion. The company has made cash payments of Rp1,250 billion and paid-up capital in other forms (inbreng) of Rp856 billion for the takeover of the STS shares.

iv.   Telkomsel

Based on the Resolution of Shareholders on December 14, 2021, Telkomsel established a subsidiary, PT Telkomsel Ekosistem Digital (“TED”), which was formalized by Notarial deed No. 19 dated December 16, 2021 of Bonardo Nasution, S.H. The total paid-up capital of TED were 197,000 shares (Rp1,000,000 par value per share). Telkomsel own 196,989 shares and paid Rp197 billion on December 29, 2021.

f.   Completion and authorization for the issuance of the consolidated financial statements

The Company’s management is responsible for the preparation and fair presentation of these consolidated financial statements which have been completed and authorized for issuance by the Board of Directors of the Company on April 21, 2022.