LONG-TERM LOANS AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2024

LONG-TERM LOANS AND OTHER BORROWINGS

LONG-TERM LOANS AND OTHER BORROWINGS

20. LONG-TERM LOANS AND OTHER BORROWINGS

Current maturities of long-term loans and other borrowings consist of the following:

	Notes	2023	2024
Two-step loans	20a	84	—
Bonds and medium-term notes ("MTN")	20b	548	2,347
Bank loans	20c	9,282	13,519
Other borrowings	20d	362	—
Total		10,276	15,866

Long-term loans and other borrowings consist of the following:

	Notes	2023	2024
Bonds and MTN	20b	4,795	2,696
Bank loans	20c	22,978	22,822
Total		27,773	25,518

Scheduled principal payments as of December 31, 2024 are as follows:

	Year
	Notes	Total	2026	2027	2028	2029	Thereafter
Bonds and MTN	20b	2,696	—	—	—	—	2,696
Bank loans	20c	22,822	6,867	4,894	4,134	3,732	3,195
Total		25,518	6,867	4,894	4,134	3,732	5,891

a.   Two-step loans

Two-step loans are unsecured loans obtained by the Government from overseas banks which are then re-loaned to the Company. Loans obtained after July 1994 are payable in their original currencies and any resulting foreign exchange gain or loss is borne by the Company.

		2023		2024
		Outstanding		Outstanding
		Foreign currency	Rupiah	Foreign currency	Rupiah
Lenders	Currency	(in millions)	equivalent	(in millions)	equivalent
Overseas banks	Yen	768	84	—	—
Total			84		—
Current maturities			(84)		—
Long-term portion			—		—

		Principal payment	Interest payment	Interest rate per
Lenders	Currency	schedule	period	annum
Overseas banks	Yen	Semi-annually	Semi-annually	2.95	%

In 2024, the Company has paid the outstanding loan.

b.   Bonds and MTN

	Outstanding
Bonds and MTN	2023	2024
Bonds
Bonds Telkom 2015
Series B	2,100	2,100
Series C	1,200	1,200
Series D	1,500	1,500
Bonds Mitratel 2024	—	240
Sukuk Mitratel 2024	—	10
MTN
MTN Mitratel 2023	550	—
Total	5,350	5,050
Unamortized debt issuance cost	(7)	(7)
Long-term portion	5,343	5,043
Current maturities	(548)	(2,347)
Long-term portion	4,795	2,696

i. Bonds

(a)Bonds Telkom 2015

						Interest payment	Interest rate
Bonds	Principal	Issuer	Listed on	Issuance date	Maturity date	period	per annum
Series A	2,200	The Company	IDX	June 23, 2015	June 23, 2022	Quarterly	9.93	%
Series B	2,100	The Company	IDX	June 23, 2015	June 23, 2025	Quarterly	10.25	%
Series C	1,200	The Company	IDX	June 23, 2015	June 23, 2030	Quarterly	10.60	%
Series D	1,500	The Company	IDX	June 23, 2015	June 23, 2045	Quarterly	11.00	%
Total	7,000

The bonds are not secured by specific security but by all the Company’s assets, movable or non-movable, either existing or in the future (Note 12b.vii). The underwriters of the bonds are PT Bahana TCW Management Investment (“Bahana TCW”), PT BRI Danareksa Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk. and the trustee is Bank Permata. 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 broadband, backbone, metro network, regional metro junction, information technology application and support, and acquisition of some domestic and international entities.

As of December 31, 2024, the rating of the bonds issued by Pefindo is idAAA (Triple A).

Based on the Indenture Trusts Agreement, the Company is required to comply with all covenants or restrictions, including maintaining financial ratios as follows:

(i)    Debt to equity ratio should not exceed 2:1;

(ii)    EBITDA to interest ratio should not be less than 4:1;

(iii)    Debt service coverage is at least 125%.

As of December 31, 2024, the Company has complied with the above-mentioned ratio.

(b)Bonds Mitratel 2024

On July 4, 2024, Mitratel issued shelf register bonds phase I amounting Rp240 billion. Bonds has annual interest rate 6.50% that will be paid quarterly. Bonds will mature on July 14, 2025.

BTN was appointed as trustee for the issuance of the Bonds. The rating of the Bonds issued by PT Pemeringkat Efek Indonesia is idAAA.

(c)Sukuk Mitratel 2024

On July 4, 2024, Mitratel issued sukuk Ijarah shelf register phase I amounting Rp10 billion. Sukuk has annual interest rate 6.50% that will be paid quarterly. Sukuk will mature on July 14, 2025.

BTN was appointed as trustee for the issuance of Sukuk. The rating of Sukuk issued by PT Pemeringkat Efek Indonesia is AAAsy.

ii. MTN

On September 26, 2023, Mitratel issued MTN amounting to Rp550 billion which will be used to support the provision of funds for credit refinancing, with annual interest rate 6.20%, that already fully paid on October 26, 2024.

c.    Bank loans

		2023		2024
		Outstanding		Outstanding
		Foreign		Foreign
		currency	Rupiah	currency	Rupiah
Lenders	Currency	(in millions)	equivalent	(in millions)	equivalent
Related parties
Bank Mandiri	Rp	—	3,453	—	6,355
BNI	Rp	—	6,182	—	6,030
BSI	Rp	—	509	—	2,083
BRI	Rp	—	955	—	1,475
Sub-total			11,099		15,943
Third parties
BCA	Rp	—	10,170	—	9,755
DBS	Rp	—	1,500	—	4,800
Bank of China	Rp	—	1,400	—	1,900
Bank CIMB Niaga	Rp	—	2,110	—	1,710
	US$	4	60	6	99
Bank Permata	Rp	—	1,313	—	1,021
HSBC	Rp	—	625	—	1,000
Bank Danamon	Rp	—	273	—	110
Syndication of banks	Rp	—	2,500	—	—
	US$	10	160	4	60
PT Bank ANZ Indonesia ("Bank ANZ")	Rp	—	110	—	22
BJB	Rp	—	500	—	—
MUFG	Rp	—	500	—	—
Others	Rp	—	13	—	3
	MYR	9	29	7	27
Sub-total			21,263		20,507
Total			32,362		36,450
Unamortized debt issuance cost			(102)		(109)
			32,260		36,341
Current maturities			(9,282)		(13,519)
Long-term portion			22,978		22,822

Other significant information relating to bank loans as of December 31, 2024 is as follows:

				Current
			Total	period	Principal	Interest
			facility	payment	payment	payment	Interest rate
	Borrower	Currency	(in billions)*	(in billions)*	schedule	period	per annum	Security**
Bank Mandiri
2018 - 2024	The Company, GSD, PST, Telkomsel, Mitratel	Rp	13,975	8,339	2020 - 2031	Quarterly	3 months JIBOR + 0.25% - 1.50%	None
BNI
2013 - 2024	The Company, TLT, Sigma, Mitratel, UMT	Rp	14,175	1,607	2018 - 2033	Monthly, Quarterly	1 month JIBOR + 2.25%; 3 months JIBOR + 0.25% - 1.70%	Trade receivables and property and equipment
2024	Mitratel	Rp	2,000	—	2024 - 2031	Monthly	7.00%	None
BSI
2024	Mitratel	Rp	2,292	208	2024 - 2029	Semi- annually	7.82%	None
BRI
2019 - 2023	The Company, Mitratel	Rp	3,000	434	2021 - 2030	Quarterly	3 months JIBOR + 0.75%	None
BCA
2020 - 2023	The Company, PST, GSD	Rp	9,186	1,660	2020 - 2031	Quarterly	3 months JIBOR + 1.00% - 1.50%	None
2020 - 2024	The Company, Mitratel	Rp	9,500	596	2024 - 2030	Quarterly	6.75% - 7.00%	None
DBS
2021	Mitratel	Rp	3,500	700	2022 - 2028	Quarterly	3 months JIBOR + 1.20%	None
2023 - 2024	The Company, Mitratel	Rp	7,000	—	2024 - 2031	Quarterly	6.50% - 6.90%	None
Bank of China
2019	Telkomsel	Rp	1,900	1,400	2021 - 2025	Monthly	4.90%	None
Bank CIMB
Niaga
2019 - 2022	PINS, Mitratel	Rp	2,300	391	2022 - 2029	Quarterly	3 months JIBOR + 1.30% - 1.95%	None
2021 - 2022	Telin	US$	0	—	2024 - 2030	Semi- annually	6 months SOFR + 1.82%	None
Bank Permata
2020 - 2022	Mitratel	Rp	2,000	292	2021 - 2029	Quarterly	3 months JIBOR + 1.30%	None
HSBC
2021 - 2023	Mitratel	Rp	1,250	125	2023 - 2030	Quarterly	3 months JIBOR + 0.50% - 1.85%	None
Bank Danamon
2022	Mitratel	Rp	636	182	2022 - 2025	Quarterly	3 months JIBOR + 1.50%	None
2024	SSI	Rp	24	1	2024 - 2029	Monthly	8.75%	None
Syndication of banks
2018	Telin	US$	0	0	2020 - 2025	Semi- annually	6 months SOFR + 1.55%	None
Bank ANZ
2015	GSD, PINS	Rp	440	100	2020 - 2025	Quarterly	3 months JIBOR + 1.40% - 2.00%	None

*In original currency

** Refer to Notes 6 and Notes 12 for details of trade receivables and property and equipment pledged as collaterals.

As stated in the agreements, the Group is required to comply with all covenants or restrictions such as dividend distribution, obtaining new loans, and maintaining financial ratios. As of December 31, 2024, the Group has complied with all covenants regarding these financial ratios, except for TLT, Sigma, and GSD which its current ratio and debt service coverage ratio are still lower than required. As of December 31, 2024, the Group obtained waiver from lenders for the non-fulfillment financial ratios in TLT, Sigma, and GSD for loan amounting Rp660 billion, Rp106 billion, and Rp231 billion, respectively. Waivers from BNI and BCA were received on December 10, 2024, December 12, 2024, and December 31, 2024, respectively, except for GSD’s bank loan from Bank Mandiri that did not receive before December 31, 2024, so that the entire balance of GSD’s long-term loan amounting to Rp13 billion has been classified as short-term. The waivers are effective for the 12 months after reporting period.

The credit facilities were obtained by the Group for working capital purposes and investment purposes.

As of December 31, 2024, the Group had Rp45,762 billion and US$73 million of undrawn committed borrowing facilities available.

d.    Other borrowings

	Outstanding
Lenders	2023	2024
PT Sarana Multi Infrastruktur (Persero)	362	—
("Sarana Multi Infrastruktur")
Unamortized debt issuance cost	0	—
Total	362	—
Current maturities	(362)	—
Long-term portion	—	—

In 2024, the Company and Telkomsat have paid the outstanding of other borrowing.