UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 201 7
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 )
J l. 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 July 28 , 2017
|
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk
----------------------------------------------------- (Registrant)
By: /s/ Andi Setiawan ---------------------------------------------------- (Signature)
Andi Setiawan VP Investor Relations |
Perusahaan Perseroan (Persero)
P T Telekomunikasi Indonesia Tbk andits subsidiaries
Consolidated financial statements as of June 30, 2017 (unaudited) and for the six month s period then ended (unaudited)
PERUSAHAAN PESEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2017AND
FOR THE
SIX
MONTH
S
PERIODTHEN ENDED
(UNAUDITED)
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Page |
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1 |
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Consolidated Statements of P rofit or L oss and O ther C omprehensive I ncome |
2 |
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3-4 |
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5 |
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6-116 |
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These consolidated financial statements are originally issued in Indonesian language
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of June 3 0 , 2017 (unaudited) and December 31, 2016 (audited)
(Figures in tables are expressed in billions of R upiah, unless otherwise stated)
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Notes |
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June 30,
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|
December 31, 201 6 |
|
ASSETS |
|
|
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|
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|
CURRENT ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
2c,2e,2u, 3 ,31, 3 7 |
|
19,068 |
|
29, 767 |
|
Other current financial assets |
2c,2e,2u, 4 ,31, 3 7 |
|
1,308 |
|
1,47 1 |
|
Trade r eceivables - net of provision for impairment of receivables |
2g,2u,2ab, 5, 3 7 |
|
|
|
|
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Related parties |
2c,31 |
|
1,936 |
|
894 |
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Third parties |
|
|
9,222 |
|
6,469 |
|
Other receivables - net of provision for impairment of receivables |
2g,2u,37 |
|
444 |
|
537 |
|
Inventories - net of provision forobsolescence |
2h, 6 |
|
1,139 |
|
584 |
|
Advances and prepaid expenses |
2c,2i, 2m, 7,3 1 |
|
5,370 |
|
5, 246 |
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Claim for tax refund |
2t,26 |
|
267 |
|
592 |
|
Prepaid taxes |
2t, 2 6 |
|
3, 248 |
|
2 , 138 |
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A ssets held for sale |
2j,9 |
|
10 |
|
3 |
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Total Current Assets |
|
|
42,012 |
|
47,701 |
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NON-CURRENT ASSETS |
|
|
|
|
|
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Long-term investments |
2f,8 |
|
1,924 |
|
1,847 |
|
Property and equipment - net ofaccumulated depreciation |
2l,2m,2aa, 9 ,34 |
|
121,374 |
|
114, 498 |
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Prepaid pension benefit cost |
2s, 29 |
|
2 |
|
199 |
|
Advances and other non-currentassets |
2c,2g,2i,2n,2u,1 0 ,3 1 , 3 7 |
|
9 , 131 |
|
11,508 |
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Intangible assets - net of accumulated amortization |
2d,2k,2n,2aa,1 1 |
|
3,073 |
|
3,089 |
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Deferred tax assets - net |
2t,2 6 |
|
327 |
|
769 |
|
Total Non-current Assets |
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|
135,831 |
|
131,910 |
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TOTAL ASSETS |
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|
177,843 |
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179,611 |
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES |
|
|
|
|
|
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Trade payables |
2o,2u,12,3 7 |
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|
|
|
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Related parties |
2c,31 |
|
983 |
|
1,547 |
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Third parties |
|
|
10,831 |
|
11,971 |
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Other payables |
2u,37 |
|
202 |
|
1 72 |
|
Taxes payable |
2t,2 6 |
|
3,317 |
|
2 , 954 |
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Accrued expenses |
2c,2u,1 3 ,31,37 |
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11,668 |
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11, 283 |
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Unearned income |
2r,1 4 |
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4,994 |
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5, 563 |
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Advances from customers and suppliers |
2c,3 1 |
|
1,026 |
|
8 40 |
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Short-term bank loans |
2c,2m,2p,2u,15a,31,37 |
|
1,781 |
|
911 |
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Current maturities of long-term borrowings |
2c, 2m, 2p,2u, 15 b ,3 1 ,3 7 |
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4,521 |
|
4 , 5 21 |
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Total Current Liabilities |
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39,323 |
|
39,762 |
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NON-CURRENT LIABILITIES |
|
|
|
|
|
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Deferred tax liabilities - net |
2t,2 6 |
|
674 |
|
745 |
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Unearned income |
2r,14 |
|
381 |
|
425 |
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Other liabilities |
|
|
8 |
|
29 |
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Long service award provisions |
2s, 30 |
|
627 |
|
613 |
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Pension benefits and other post-employment benefits obligations |
2s, 29 |
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6,439 |
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6,126 |
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Long-term borrowings - net of current maturities |
2c,2m,2p,2u, 1 6 ,31,37 |
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28,367 |
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26,3 67 |
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Total Non-current Liabilities |
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36,496 |
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34,305 |
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TOTAL LIABILITIES |
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|
75,819 |
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74,067 |
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EQUITY |
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Capital stock |
1c,18 |
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5,040 |
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5,040 |
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Additional paid-in capital |
2v,19 |
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4,931 |
|
4,931 |
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Treasury stock |
2v,20 |
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(2,541 |
) |
(2,541 |
) |
Other equity |
2f,2u,21 |
|
346 |
|
339 |
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Retained earnings |
|
|
|
|
|
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Appropriated |
28 |
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15,337 |
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15,337 |
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Unappropriated |
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61,754 |
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6 1 , 278 |
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Net equity attributable to: |
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Owners of the Parent Company |
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84,867 |
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8 4 , 384 |
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Non-controlling interests |
2b,17 |
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17,157 |
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21,160 |
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TOTAL EQUITY |
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|
102,024 |
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105,544 |
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TOTAL LIABILITIES AND EQUITY |
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|
177,843 |
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1 79 , 611 |
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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 SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Six Months Period Ended June 30, 2017 and 2016 (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
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Notes |
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201 7 |
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201 6 |
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REVENUES |
2c,2r,22,3 1 |
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64,021 |
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56,454 |
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Operation, maintenance and telecommunication service expenses |
2c,2r,24,31 |
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(18,408 |
) |
(16,174 |
) |
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Depreciation and amortization expenses |
2k,2l,2m,9,11 |
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(9,630 |
) |
(8,739 |
) |
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Personnel expenses |
2c,2r,2s,23,31 |
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(6,715 |
) |
(6,405 |
) |
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Interconnection expenses |
2c,2r,31 |
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(1,410 |
) |
(1,413 |
) |
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General and administrative expenses |
2c,2r,25,31 |
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(2,203 |
) |
(1,938 |
) |
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Marketing expenses |
2r |
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(2,050 |
) |
(1,729 |
) |
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Loss on foreign exchange - net |
2q |
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(9 |
) |
(170 |
) |
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Other income |
2l,2r,9c |
|
602 |
|
590 |
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Other expenses |
2r,9c |
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(412 |
) |
(589 |
) |
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OPERATING PROFIT |
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|
23,786 |
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19,887 |
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Finance income |
2c,3 1 |
|
784 |
|
886 |
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Finance costs |
2c,2p,2r,31 |
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(1,350 |
) |
(1,301 |
) |
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Share of profit (loss) of associated companies |
2f,8 |
|
35 |
|
26 |
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PROFIT BEFORE INCOME TAX |
|
|
23,255 |
|
19,498 |
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INCOME TAX (EXPENSE) BENEFIT |
2t,2 6 |
|
|
|
|
|
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Current |
|
|
(5,531 |
) |
(4,872 |
) |
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Deferred |
|
|
(229 |
) |
37 |
|
|
|
|
|
(5,760 |
) |
(4,835 |
) |
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PROFIT FOR THE PERIOD |
|
|
17,495 |
|
14,663 |
|
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OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
Other comprehensive income to be reclassified to profit o r loss in subsequent periods : |
|
|
|
|
|
|
|
Foreign currency translation |
2f,2q,21 |
|
(11 |
) |
(80 |
) |
|
Change in fair value of available-for-sale financial assets |
2u,21 |
|
18 |
|
4 |
|
|
Share of other comprehensive income of associated companies |
2f,8 |
|
(2 |
) |
(1 |
) |
|
Other comprehensive income not to be reclassified to profit o r loss in subsequent periods : |
|
|
|
|
|
|
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Defined benefit plan actuarial (loss) gain - net of tax |
2s,29 |
|
- |
|
- |
|
|
Other comprehensive income of associated companies |
|
|
- |
|
- |
|
|
Other comprehensive income - net |
|
|
5 |
|
(77 |
) |
|
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
|
|
17,500 |
|
14,586 |
|
|
Profit for the year attributable to: |
|
|
|
|
|
|
|
Owners of the parent company |
|
|
12,104 |
|
9,926 |
|
|
Non-controlling interests |
2b,17 |
|
5,391 |
|
4,737 |
|
|
|
|
|
17,495 |
|
14,663 |
|
|
Total comprehensive income for the year attributable to: |
|
|
|
|
|
|
|
Owners of the parent company |
|
|
12,109 |
|
9,849 |
|
|
Non-controlling interests |
2b,17 |
|
5,391 |
|
4,737 |
|
|
|
|
|
17,500 |
|
14,586 |
|
|
BASIC AND DILUTED EARNINGS PER SHARE |
|
|
|
|
|
|
|
(in full amount) |
2x,27 |
|
|
|
|
|
|
Net income per share |
|
|
122,19 |
|
101,07 |
|
|
Net income per ADS (100 Series B shares per ADS) |
|
|
12,218,58 |
|
10.106,66 |
|
|
The accompanying notes to the consolidated financial statements form an integral part ofthese consolidated financial statements taken as a whole.
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the SixM onth sPeriod ended June 30, 201 7 and 2016 (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
|
|
|
|
Attributable to owners of the parent company |
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings |
|
|
|
|
|
|
|
||
Descriptions |
|
Notes |
|
Capitalstock |
|
Additionalpaid-incapital |
|
Treasurystock |
|
Otherequity |
|
Appropriated |
|
Unappropriated |
|
Net |
|
Non-controllinginterests |
|
Totalequity |
|
Balance, January 1 , 201 7 |
|
|
|
5,040 |
|
4 , 931 |
|
( 2 , 541 |
) |
339 |
|
15,337 |
|
61,278 |
|
84,384 |
|
21 ,160 |
|
105,544 |
|
Cash dividends |
|
2w,28 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(11,626 |
) |
(11,626 |
) |
(9,394 |
) |
(21,020 |
|
Profit for the period |
|
2b,17 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
12,104 |
|
12,104 |
|
5,391 |
|
17,495 |
|
Other comprehensive income |
|
2f,2q,2s,2u,17 |
|
- |
|
- |
|
- |
|
7 |
|
- |
|
(2 |
) |
5 |
|
- |
|
5 |
|
Balance, June 30 , 2017 |
|
|
|
5,040 |
|
4,931 |
|
(2,541 |
) |
346 |
|
15,337 |
|
61,754 |
|
84,867 |
|
17,157 |
|
102,024 |
|
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 SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (continued)
For the SixM onth sPeriod ended June 30, 201 7 and 2016 (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
|
|
|
|
Attributable to owners of the parent company |
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings |
|
|
|
|
|
|
|
||
Descriptions |
|
Notes |
|
Capitalstock |
|
Additionalpaid-incapital |
|
Treasurystock |
|
Otherequity |
|
Appropriated |
|
Unappropriated |
|
Net |
|
Non-controllinginterests |
|
Totalequity |
|
Balance, January 1 , 201 6 |
|
|
|
5,040 |
|
2, 935 |
|
(3,8 04 |
) |
508 |
|
15,337 |
|
55,120 |
|
75,136 |
|
18 ,292 |
|
93,428 |
|
Investment in subsidiaries |
|
|
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
62 |
|
62 |
|
Acquisition of non-controlling interest |
|
|
|
- |
|
- |
|
- |
|
(129 |
) |
- |
|
- |
|
(129 |
) |
(10 |
) |
(139 |
) |
Cash dividends |
|
2w,2 8 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(9,293 |
) |
(9,293 |
) |
(7,058 |
) |
( 16,351 |
) |
Sale of treasury stock |
|
|
|
- |
|
1,996 |
|
1,262 |
|
- |
|
- |
|
- |
|
3,258 |
|
- |
|
3,258 |
|
Profit for the period |
|
2b,17 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
9 , 296 |
|
9,926 |
|
4 , 737 |
|
14 , 663 |
|
Other comprehensive income |
|
2f,2q,2s,2u,17 |
|
- |
|
- |
|
- |
|
( 76 |
) |
- |
|
(1 |
) |
( 77 |
) |
- |
|
( 77 |
) |
Balance, June 3 0 , 2016 |
|
|
|
5,040 |
|
4 ,93 1 |
|
( 2 , 542 |
) |
303 |
|
15,337 |
|
55 , 752 |
|
78 , 821 |
|
16 , 023 |
|
94 , 844 |
|
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 ANDSUBSIDIARIES
CONSOLIDATED STATEMENTS OF C ASH FLOW
For the SixM onth sPeriod ended June 30, 201 7 and 2016 (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
|
Notes |
|
201 7 |
|
201 6 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
Cash receipts from: |
|
|
|
|
|
|
Customers |
|
|
55, 359 |
|
52,735 |
|
Other operators |
|
|
4,353 |
|
3,793 |
|
Total cash receiptsfrom customers and other operators |
|
|
59,712 |
|
56,528 |
|
Interest income received |
|
|
794 |
|
905 |
|
Other cash receipts (payment) - net |
|
|
220 |
|
(447 |
) |
Cash payments for expenses |
|
|
(23,7 28 |
) |
(18,884 |
) |
Cash payments to employees |
|
|
(7,450 |
) |
(6,622 |
) |
Payments for corporate and final income taxes |
|
|
(5,304 |
) |
(4,750 |
) |
Payments for interest costs |
|
|
(1,514 |
) |
(1,419 |
) |
Payments for value added taxes - net |
|
|
(470 |
) |
(622 |
) |
Net cash provided by operating activities |
|
|
22,260 |
|
24,689 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
Proceeds from sale of property and equipment |
9 |
|
299 |
|
210 |
|
Proceeds from (placement in) time deposits and available-for-sale financial assets - net |
1d |
|
196 |
|
75 |
|
Proceeds from insurance claims |
9 ,39 |
|
146 |
|
25 |
|
Capital contribution of non-controlling interests in subsidiaries |
|
|
- |
|
(139 |
) |
Purchase of property and equipment |
11 ,39 |
|
(13,7 95 |
) |
(13,314 |
) |
Increasein advances for purchases of property and equipment |
|
|
(76 5 |
) |
(218 |
) |
Purchase of intangible assets |
8 |
|
(5 50 |
) |
(689 |
) |
Increase in other assets |
|
|
(70 |
) |
(25 |
) |
Additional contribution o n long-term investments |
|
|
(44 |
) |
(10 |
) |
Net cash used in investing activities |
|
|
(14,583 |
) |
(14,085 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
Proceeds from loans and other borrowings |
15,16 |
|
7,053 |
|
2,152 |
|
Capital contribution of non-controlling interests in subsidiaries |
|
|
- |
|
52 |
|
Cash dividends paid to the Company’s stockholders |
|
|
(11,62 6 |
) |
(9,293 |
) |
Cash dividends paid to non-controlling interests of subsidiaries |
|
|
(9,394 |
) |
(7,058 |
) |
Repayments of loans and other borrowings |
|
|
(4,387 |
) |
(2,899 |
) |
Net cash used in financing activities |
|
|
(18,354 |
) |
(17,046 |
) |
NET INCREASE IN CASH AND CASH EQUIVALENTS |
3 |
|
(10,67 7 |
) |
(6,442 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
3 |
|
(2 2 |
) |
(244 |
) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
|
29,767 |
|
28,117 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
|
19,068 |
|
21,431 |
|
5
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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 commerciallyin 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 18 ).
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 amendments of which were about,among others, i n compliance with the Financial Services Authority Regulations and the Ministry of State-Owned Enterprises Regulations and Circular Letters, addition of main and supporting business activities of the Company, addition of special right of Series A Dwiwarna stockholder, 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.16 dated May 16, 2017 of Ashoya Ratam, S.H., MKn . The latestamendments were accepted and approved by the Ministry of Law and Human Rights of the Republic of Indonesia (“MoLHR”) in its Letter No.AHU-0077424.AH.01.11date d June 9, 2015 and MoLHR decision’sNo. AH U-0013024.AH.01.02 dated June 15 , 201 7 .
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 in accordance with prevailing regulations. In regard to achieving itsobjectives, the Company is involved in the following activities:
a. Main business:
i. Planning, building, providing, developing, operating, marketing or selling or 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 regulation s.
iii. Investing including equity capital 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, repairs and maintenance facilities.
iii. Collaborat ing 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 achiev e the purposes and objectives of the Company.
The Company’s head office is located at Jalan Japati No. 1, Bandung, West Java.
6
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
a. Establishment and general information (continued)
The Company was granted several networks and/or services licenses by the G overnment which are valid for an unlimited period of time as long as the Company complies with prevailing laws and fulfills the obligation stated in thoselicenses. For every license issued by the Ministry of Communication and Information (“MoCI”), 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, numbers of customers, license payment and universal service contribution, while for internet telephone services for public purpose, Internet Inter c onnection 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 electronic money issuer |
|
Bank Indonesia LicenseNo. 11/432/DASP |
|
Electronic money |
|
July 3, 2009 |
|
License of money remittance |
|
Bank Indonesia License No. 11/23/bd/8 |
|
Money remittance service |
|
A u gust 5, 2009 |
|
License to operate network access point |
|
331/KEP/DJPPI/KOMINFO/09/2013 |
|
Network Access Point |
|
September 24, 2013 |
|
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 fixed domestic long distance network |
|
839/KEP/M.KOMINFO/05/2016 |
|
Fixed domestic long distance and basic telephone services network |
|
May 16, 2016 |
|
License to operate fixed closed network |
|
844/KEP/M.KOMINFO/05/2016 |
|
Fixed closed network |
|
May 16, 2016 |
|
License to operate fixed international network |
|
846/KEP/M.KOMINFO/05/2016 |
|
Fixed international and basic telephone services network |
|
May 16, 2016 |
|
License to operate circuit switched based local fixed line network |
|
948/KEP/ M.KOMINFO/05/2016 |
|
Circuit Switched based local fixed line network |
|
May 31, 2016 |
|
License to operate data communication system services |
|
191/KEP/DJPPI/KOMINFO/10/2016 |
|
Data communication system services |
|
October 31, 2016 |
|
License to operate internet service provider |
|
2176 /KEP/M.KOMINFO/12/2016 |
|
Internet service provider |
|
December 30 , 2016 |
|
7
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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, Directors, Audit Committee, Corporate Secretary and E mployees
1. Board of Commissioners and Directors
Based
on resolutions made at the
Annual General Meeting (“AGM”) of
Stockholders of the Company as covered
by notarial deed No.28
of
Ashoya Ratam.,
S.H.,
Mkn.,
dated
April 21, 2017and notarial deed
No. 50 of Ashoya Ratam
.,
S.H.,
Mkn.,
dated April 22, 2016,
t
he compositionof the Company’s
Boards of Commissioners and Directors as of June 30, 2017 and December
31
, 2016,
respectively, was as follows:
*On September 9, 2016, Muhammad Awaluddin was appointed as Director of PT Angkasa Pura II. Based on the Board of Directors’ decision No. 33/REG/IX / 2016 dated September 13, 2016, Honesti Basyir as Director of Wholesale and International Services was appointed to act as Director of Enterprise and Business Service.
8
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. Audit Committee and Corporate Secretary
The
composition of the Company’s Audit Committee and the Corporate Secretary as of
June 30, 2017 and December 31
,
201
6, were as follows:
*The changes of Audit Committee are based on Board of Commissioner’s Regulation No.05/KEP/DK/2017 dated April 28, 2017
9
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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, Directors, Audit Committee, Corporate Secretary and Employees (continued)
3. Employees
As of June 30, 2017 and December 31, 2016 , the Company and subsidiaries (“ Group ”) had 23,726employees and 23,876 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 wholly-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 was 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.
During the Extraodinary General Meeting (“EGM”) held on December 21, 2005 and the AGMs 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 20).
10
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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 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).
O
n July 30, 2013, the Company has sold all
such shares
(Note 20).
At the AGM held on April 19, 2013 as covered by notarial deedNo. 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 20).
At the
AGM held on April 19, 2013, the minutes of which
were
covered by notarial deed No.38 of Ashoya
Ratam, S.H
.
, MKn
.
, the
stockholders approved the Company’s 5-for-1 stock 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 of 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.The issued capital stock increase 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
.
Effective from October 26, 2016, the
Company change the ratioof Depositary Receipt from 1 ADS representing200
series B
shares to become 1 ADS representing 100
series B
shares (Note 18). Profit per ADS
information have been retrospectively adjusted to reflect the changes in the
ratio of ADS.
On May 16
and June 5, 2014, the
C
ompany deregistered from Tokyo
Stock Exchange
(“TSE”)
and delisted from the LSE,
respectively.
As of June 3 0 , 201 7, all of the Company’s Series B shares are listed on the IDX and 65,754,894 ADS shares are listed on the NYSE (Note 18).
OnJune
25
,
2010
the Company issued
the second rupiah bonds
with a
nominal amount of
Rp
1,005
billion for Series A, a
five-year period and Rp
1,995
billion for Series B, a
ten-year period, respectively, are listed on the IDX
(Note
16b.i).
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, 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,
respectively
which
are listed on the IDX (Note
16b.i).
On
December 21, 2015, the Company sold the remaining shares of
t
reasury
shares
phase III
(Note 20).
On June 29, 2016, the Company sold the treasury sharesphase IV (Note 20).
11
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries
As of June 30, 2017 and December31 , 2016 , the Company has consolidated the following directly or indirectly owned subsidiaries (Notes 2b and 2d) :
(i) Direct subsidiaries :
|
|
|
|
|
|
|
|
|
||||
Subsidiary/place of incorporation |
|
Nature of business/date of incorporation or acquisition by the Company |
|
Year of start of commercial operations |
|
Percentage of ownership interest |
|
Total assets before elimination |
||||
|
|
|
June 30, 201 7 |
|
December 31, 201 6 |
|
June 30, 201 7 |
|
December 31, 201 6 |
|||
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 |
|
80,931 |
|
89,781 |
PT Multimedia Nusantara ( “Metra” ), Jakarta, Indonesia |
|
N etwork telecommunication services and multimedia/ May 9, 2003 |
|
1998 |
|
100 |
|
100 |
|
13,042 |
|
10,020 |
PT Dayamitra Telekomunikasi ( “Dayamitra” ), Jakarta, Indonesia |
|
Telecommunication/ May 17, 2001 |
|
1995 |
|
100 |
|
100 |
|
11,470 |
|
10,689 |
PT Telekomunikasi I ndonesiaInternational ( “TII” ), Jakarta, Indonesia |
|
Telecommunication/ July 31, 2003 |
|
1995 |
|
100 |
|
100 |
|
7,509 |
|
7,147 |
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 |
|
4,776 |
|
4,333 |
PT Telkom Akses ( “Telkom Akses” ), Jakarta, Indonesia |
|
Construction, service and trade in the field of Telecommunication/ November 26, 2012 |
|
2013 |
|
100 |
|
100 |
|
4,565 |
|
5,098 |
PT P INS Indonesia ( “P INS ” ) Jakarta, Indonesia |
|
Telecommunication construction and services/August 15,2002 |
|
1995 |
|
100 |
|
100 |
|
3,449 |
|
3,146 |
PT Infrastruktur Telekomunikasi Indonesia (“ Telkom Infratel ”) , Jakarta, Indonesia |
|
Construction, service and trade in the field of telecommunication/ January 16, 2014 |
|
2014 |
|
100 |
|
100 |
|
1,545 |
|
1,015 |
PT Patra Telekomunikasi Indonesia( “Patrakom” ) ,Jakarta, Indonesia |
|
Telecomunicatio n- provides satellite communication system, services and facilities/ September 28, 1995 |
|
1996 |
|
100 |
|
100 |
|
527 |
|
472 |
PT Metranet (“ Metranet ”), Jakarta, Indonesia |
|
Multimedia portal service/April 17, 2009 |
|
2009 |
|
100 |
|
100 |
|
441 |
|
370 |
PT Jalin Pembayaran Nusantara (“ Jalin ”), Jakarta, Indonesia |
|
Payment services -principal, switching, clearing and settlement activities/ November 3, 2016 |
|
2016 |
|
100 |
|
100 |
|
200 |
|
15 |
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 |
12
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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:
|
|
|
|
Year of start of commercial operations |
|
|
|
|
|
||||
Subsidiary/place of incorporation |
|
Nature of business/date of incorporation or acquisition by the Company |
|
|
Percentage of ownership interest |
|
Total assets before elimination |
|
|||||
|
|
|
June 30, 201 7 |
|
December 31, 201 6 |
|
June 30, 201 7 |
|
December 31, 201 6 |
|
|||
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 |
|
6,187 |
|
4,289 |
|
Telekomunikasi Indonesia International Pte. Ltd., Singapore |
|
Telecommunication/ December 6, 2007 |
|
2008 |
|
100 |
|
100 |
|
2,867 |
|
2,566 |
|
PT Infomedia Nusantara
|
|
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 |
|
2,279 |
|
1,860 |
|
PTTelkom Landmark Tower ( “TLT” ), Jakarta, Indonesia |
|
Service for property development and management/ February 1, 2012 |
|
2012 |
|
55 |
|
55 |
|
1,836 |
|
1,683 |
|
PT Finnet Indonesia ( “Finnet” ), Jakarta , Indonesia |
|
Information technology services/
|
|
2006 |
|
60 |
|
60 |
|
1,147 |
|
629 |
|
PT Metra Digital Media(“ MD Media ”), Jakarta, Indonesia |
|
Directory information services/ January 22, 2013 |
|
2013 |
|
99,99 |
|
99,99 |
|
767 |
|
684 |
|
Telekomunikasi Indonesia International ( “TL” )S.A., Dili, Timor Leste |
|
Telecommunication/ September 11, 2012 |
|
2012 |
|
100 |
|
100 |
|
706 |
|
755 |
|
Telekomunikasi Indonesia International Ltd., Hong Kong |
|
Telecommunication/December 8, 2010 |
|
2010 |
|
100 |
|
100 |
|
498 |
|
441 |
|
PT Metra Digital Investama (“ MDI ”), Jakarta, Indonesia |
|
Trading and/or providing service related to information and tehnology multimedia, entertainment and investment/January 8, 2013 |
|
2013 |
|
99.99 |
|
99.99 |
|
491 |
|
331 |
|
PT Nusantara Sukses Investasi (” NSI ”), Jakarta, Indonesia |
|
Service and trading/September 1, 2014 |
|
2014 |
|
99,99 |
|
99,99 |
|
297 |
|
227 |
|
PT Administrasi Medika (“ Ad Medika ”), Jakarta, Indonesia |
|
Health insurance administration services/February 25, 2010 |
|
2002 |
|
100 |
|
100 |
|
279 |
|
204 |
|
PT Metra Plasa(“ Metra Plasa ”), Jakarta, Indonesia |
|
Network & e-commerce services/April 9, 2012 |
|
2012 |
|
60 |
|
60 |
|
274 |
|
325 |
|
PT Melon (“ Melon ”), Jakarta, Indonesia |
|
Digital content exchange hub services / November 14, 2016 |
|
2010 |
|
100 |
|
100 |
|
208 |
|
178 |
|
13
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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)
a) Metra
Based on notarial deed of Utiek Rochmuljati Abdurachman, S . H., M . LI, M . Kn., No. 10,11,12,13 and 14 dated May 25, 2016, Metra purchased 2,000 shares of Ad Medika from the non-controlling interest equivalent to 25% ownership amounting to Rp138 billion.
b) Sigma
Based on notarial deed of Utiek Rochmuljati Abdurachman, S.H., M.LI, M.Kn., No. 15 dated June 29, 2016,Sigma purchased 13,770 shares of PT Pojok Celebes Mandiri (“PCM”) (equivalent to 51% ownership) from Metra amounting to Rp7.8 billion.
14
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
c) Jalin
On November 3, 2016, the Company established a wholly-owned subsidiary under the name PT Jalin Pembayaran Nusantara (“Jalin”) which was approved by the MoLHR through its Decision Letter No. AHU-0050800.AH.01.01 dated November 15, 2016. Jalin is engaged in organizing ICT (Information, Communication &Telecommunication) business focus ing on non cash payment to support national payment gateway.
d) Metranet
On November 10 , 2016 , Metranet increased its share capital from Rp244 billion to Rp32 5 billion by issuing 18 , 800 , 000 new shares which were wholly-owned by the Company .
Based on notarial deed of Utiek Rochmuljati Abdurachman, S.H., M.LI, M.Kn., No. 0 8 and 09 dated November 14, 2016, Metranet purchased 4,900,000 shares of Melon (equivalent to 49% ownership) from SK Planet Co. and 300,000 shares of Melon (equivalent to 3% ownership) from Metra amounting to US$13,000,000 or Rp170.4 billion and Rp13.2 billion, respectively. As a result of this transaction, Metranet acquired 52% ownership in Melon and the remaining shares are held by Metra.
e. Authorization for the issuance of the consolidated financial statements
The consolidated financial statements were prepared and approved for issuanceby the Board of Directors on July26 , 2017.
15
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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”) have been prepared in accordance with Financial Accounting Standards ("S tandar Akuntansi Keuangan” or “S AK") in cluding Indonesia n Statement of Financial Accounting Standards ("P ernyataan S tandar A kuntansi K euangan " or “PSAK” ) and interpretation of Financial Accounting Standards ("I nterpretasi S tandar A kuntansi K euangan " or “ISAK” ) in Indonesia published by the Financial Accounting Standards Board of Indonesian Institute of A ccountant and Regulation No. VIII.G.7 of the Capital Market and Financial Institution Supervisory Agency (“Bapepam-LK”) regarding the Presentation and Disclosure of Financial Statements of Issuers or Public Companies, enclosed in the decision letterKEP-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 accountswhich 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.
Accounting S tandards I ssued but not yet E ffective
Effective January 1, 201 8 :
· Amendments to PSAK 2: Statement of Cash Flows on Disclosure Initiative .
These amendments require the entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes.
· Amendments to PSAK 46: Income Taxes on Recognition of Deferred Tax Assets for Unrealised Losses.
These amendments:
- Add illustrative examples to clarify that the deductible temporary differences arise when the carrying amount of debt instruments measured at fair value and the fair value is less than the taxable base, regardless of whether the entity expects to recover the carrying amount of a debt instrument by sale or by use, for example by holding it and collecting contractual cash flows, or a combination of both.
- Clarify that in order to assess whether taxable profits will be available against which it can utilise a deductible temporary difference, the assessment of that deductible temporary difference carried out in accordance with tax law.
- Clarify that tax reduction from the reversal of deferred tax assets is excluded from the estimation of future taxable profit. The entity compares the deductible temporary differences with future taxable profit that excludes tax deductions resulting from the reversal of those deductible temporary differences to assess whether the entity has sufficient future taxable profit.
- The estimate of probable future taxable profit may include the recovery of some of an entity’s assets for more than their carrying amount if there is sufficient evidence that it is probable that the entity will achieve this.
· PSAK 15 (Adjustment 2017): Investment in Associates and Joint Ventures
The standard clarifies that upon initial recognition, an entity may choose to measure its investee at fair value on an investment-per-investment basis.
16
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Basis of preparation of financial statements (continued)
· PSAK 67 (Adjustment 2017): Disclosure of Interests in Other Entities
The standard clarifies that the disclosure requirements in PSAK 67, other than those described in paragraph PP10-PP16, are also applied to any interest in an entity classified in accordance with PSAK 58: Non-Current Assets Held for Sale and Discontinued Operations.
The following new or amended standards, that will be effective on January 1, 2018, are considered to be not applicable to the Group’s consolidated financial statements:
· PSAK 69: Agriculture.
· Amendments to PSAK 16: Agriculture: Bearer Plants.
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 financial statements 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.
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 part y which is considered as a related party is a person or entity that is related to the entity that is preparing its financial statements.
17
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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 (continued)
Under the Regulation of Bapepam-LK No.VIII.G.7, a government-related entity is an entity that is controlled, jointly controlled or significantly influenced by the government. Government in this context is the Minister of Finance or the Local Government, as the shareholder of the entity. Formerly, t he 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 t he Group. The relatedparty 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 proportionateshare 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.
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 theacquiree at its acquisition-date fair value and recognizes the resulting gain or loss, if any, in profit or loss.
18
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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)
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 for the Company or individual entity in the same group. 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 r estructuring 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 original maturities 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 “O ther C urrent F inancial A ssets” in the consolidated statement of financial position .
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 profit or loss and other 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.
19
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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 (continued)
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.
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 expensedupon use. Components represent telephone terminals, cables, and other spare parts. Inventories also include Subscriber Identification Module (“SIM”) cards, handsets, set top boxes, wireless broadband modems and blank prepaid vouchers, which are expensed upon sale.
The costs of inventories consist 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 inventory items.
i. Prepaid expenses
Prepaid expenses are amortized over their future beneficial periods using the straight-line method.
20
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 .
k. Intangible assets
Intangible assets mainly consist of software. Intangible assets are recognized if it is highly 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 losses , if any . Intangible assets are amortized over their estimated useful lives. The Group estimates the recoverable value of its intangible assets. When the carrying amount of an intangible asset exceeds its estimated recoverable amount, the asset is writtendown to its estimated recoverable amount.
Intangible assets except goodwill are amortized using the straight-line method, based on the estimated useful lives of the intangible assets as follows:
Intangible assets are derecognized on disposal, or 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
s
tatements of profit or loss and other
comprehensive income.
l. Property and equipment
Property and equipment are stated at costless 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.
21
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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)
Property and equipment, except land rights, 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 |
|
Satelite, earth station and equipment |
3-20 |
|
Cable network |
5-25 |
|
Power supply |
3-20 |
|
Data processing equipment |
3-20 |
|
Other telecommunication peripherals |
5 |
|
Office equipment |
2-5 |
|
Vehicles |
4-8 |
|
Customer Premises Equipment (“CPE”)asset |
4-5 |
|
Other equipment |
2-5 |
|
Significant expenditures related to leasehold improvements are capitalized and depreciated over the lease term.
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 estimate d amount that t he 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 standbyequipment 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 s tatements 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 s tatements of profit or loss and other comprehensive income as incurred. Significant renewals and betterments are capitalized.
22
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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)
Property under construction is stated at cost until the
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 form 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 s 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.
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
t
he Group will obtain ownership
by the end of the lease term
s
, the leased assets are fully
depreciated over the shorter of the lease terms 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
C osts 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 using the straight-line method 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
the
payment is due within one
year or less. 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.
23
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 s tatements 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 draw n 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.
q. Foreign currency translations
The
functional currency and the recording currency of
t
he Group are both the Indonesian rupiah,
except for the functional currency of Telekomunikasi Indonesia International
Pte. Ltd., Hong Kong, Telekomunikasi Indonesia International Pte. Ltd.,
Singapore, Telekomunikasi Indonesia International Inc., USA and Telekomunikasi
Indonesia International S.A., Timor Leste whose functional currency ismaintained
in U.S.dollars
and Telekomunikasi Indonesia International, Pty. Ltd.,
Australia whose
functional currency 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 statements of financial position dates, monetary assetsand
liabilitiesdenominated in foreign currencies are translated into Indonesian
rupiah based on the buy and sell rates quoted by Reuters prevailing at the
consolidated statements of financial
position dates,as follows
(in full
amount)
:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
||||
|
Buy |
|
Sell |
|
Buy |
|
Sell |
|
U.S . dollar (“US$”) 1 |
13,325 |
|
13,330 |
|
13,470 |
|
13,475 |
|
Australian dollar (“AU$”) 1 |
10,055 |
|
10,061 |
|
9,721 |
|
9,726 |
|
Euro 1 |
14,879 |
|
14,890 |
|
14,170 |
|
14,181 |
|
Yen 1 |
119.94 |
|
120.00 |
|
115.01 |
|
115.10 |
|
The resulting foreign exchange gains or losses, realized and unrealized, are credited or charged to the consolidated s tatements 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. 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 and start-up load vouchers) and pulse reload vouchers, are recognized initially as unearned income and recognized as revenue based on 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.
24
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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
ii. Fixed line telephone revenues
Revenues from usage charges are recognized as customers incur the charges. Monthly subscription charges are recognized as revenues when incurred by subscribers.
R evenue s from fixed line installationsare deferred and recognized as revenue 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 term of the customer relationships is 18 years.
iii. Interconnection revenues
R evenues 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 t he Group’ s subscribers (incoming) and calls between subscribers of other operators through t he 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 revenues
Revenues from sales of handsets or other telecommunication s equipments are recognized when delivered to customers.
Revenues from telecommunication tower lease s are recognized on straight-line basis over the lease period in accordance with the agreement with the customers.
Revenues from other services are recognized when services are rendered to customers.
v i i. 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.
25
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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)
v i ii. Agency relationship
Revenues from an agency relationship are recorded based on the gross amount billed to the customers when t he Group act s 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, t he Group has act ed as agent 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 telecommunication services usage. The points can be rede e med in the future for free or discounted products or services, 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.
The net obligations in respect of the defined pension benefit plans and post-retirementhealth care benefit plans are calculated at the present value of estimated future benefits that the employees have earned in return for their service in the current and prior periods less the fair value of plan assets. 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.
26
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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)
Plan assets are assets owned by defined benefit pension plan and post-retirement health care benefits plan as well as qualifying insurance policy. The assets are measured at their fair value as of reporting dates. The fair value of qualifying insurance policy is deemed to be the present value of the related obligations (subject to any reduction required if the amounts receivable under the insurance policies are not recoverable in full).
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 (asset)) and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability (asset)) 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 reclassified to profit or loss in subsequent periods.
P ast service costs are recogni z ed 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 (other than the payment of benefit in accordance with the program and included in the actuarial assumptions).
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 profit or loss and other comprehensive income and credited to additional paid-in capital at the grant date.
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.
27
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
t. Income tax
Current and deferred income tax esare recognized as income or an expense and included in the consolidated statements 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 reducedto the extent that it is no longer probable that sufficient taxable income 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 statements of financial position, except if these are for different legal entities, in the same manner the current tax assets and liabilities are presented.
Amendment to taxation obligation is recorded when an assessment letter (“Surat Ketetapan Pajak” or “SKP”) is received or, if appealed against, when the results of the appeal are determined. The additional tax es and penalty imposed through an SKP are recogni z ed in the current yearprofit or loss , unless objection/appeal is taken . The additional tax es and penalty imposed through the SKP are deferred as long as they meet the asset recognition criteria.
Indonesian tax regulation simpose final tax on several types of transactions based on the gross value of the transaction. Therefore, final tax which is charged based on the such transaction remains subject to tax even though the tax payer incurred a loss on the transaction. Refer to PSAK No. 46 revised, final tax is not required in scope of PSAK No. 46.
Final income tax on construction services and lease is presented as part of “O ther E xpenses ” .
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 investment 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.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Group commits to purchase or sell the assets.
28
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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)
ii. Financial assets (continued)
The Group’s financial assets include cash and cash equivalents, other current financial assets, trade receivables and other receivablesand 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
s
tatements 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 “
O
ther
C
urrent
F
inancial
A
ssets”
in the
consolidated statement
s
of financial
position
.
No financial assets were classified as financial assets at fair value through profit or loss as of June 30, 2017 and December 31, 2016.
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 assets, cash and cash equivalents, other current financial assets , trade and 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 on which management has the positive intention and ability to hold to maturity, other than:
a) those that the Group, upon initial recognition, designates as 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 investments as of
June
30, 2017 and December
3
1
,
2016
.
d. Available-for-sale financial assets
Available-for-sale investments are non-derivative financial assets that are intended to be held for indefinite periods 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 primarily consist of mutual funds, and corporate and government bonds, which are recorded as part of “O ther C urrent F inancial A ssets” in the consolidated statements of financial position.
29
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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 gain 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 statement s of financial position until realized. Realized gain or losses from the sale of available-for-sale securities are recognized in the consolidated statement s of profit or loss and other comprehensive income, and are determined on the specific identification basis.
ii. Financial liabilities
The Group classifies its 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 and other payables, accrued expenses, and interest-bearing loans and other borrowings . Interest-bearing l oans and other borrowings consist of short-term bank loans, two-step loans, bonds and notes, long-term bank loans and obligations under finance leases.
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 it in the near term and for which there is evidence of a recent actual pattern of short-term profit taking.
No financial liabilities were categorized as held for trading as of June 30, 2017 and December 31, 2016.
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 aretrade and other payables, accrued expenses, and interest-bearing loans and other borrowings. Interest-bearingl oans and other borrowings consist of short-term bank loans, two-step loans, bonds and notes, long-term bank loans and obligations under finance leases.
iii. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the consolidated statement s of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle them 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 .
iv. Fair value of financial instruments
Fair value is the amount for which an asset could be exchanged, or liability settled, in an arm’s 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.
30
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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)
v. Fair value of financial instruments (continued)
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 37 .
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 assets. Impairment is recognized when the loss can be reliably estimated. Losses expected as a result of future events, no matter how likely, are not recognized.
For financial assets carried at amorti z ed 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, recogni z ed 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 recogni z ed 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 has expired.
31
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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 in equity. The cost of treasury stock sold/transferred is accounted for using the weighted average method. The portion of treasury stock transferred for employee stock ownership program is accounted for at its fair value at grant date. The difference between the cost and the proceeds from the sale/transfer 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 is recognized as a liability based on the Board of Directors’ decision supported by the approval from the Board of Commissioners .
x. Basic and diluted earnings per share and earnings per ADS
Basic earnings pershare 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 the basic earnings per share by 100, 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
Provisions are recognized when the Group has present obligations (legal or constructive) arising from past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and the amount can be measured reliably.
Provisions for onerous contracts are recognized when the contract becomes onerous for the lower of the cost of fulfilling the contract and any compensation or penalties arising from failure to fulfill the contract.
aa. Impairment of non-financial assets
At the end of each reporting period, t he Group assesses 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 (“VIU”). 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.
32
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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 as part of “Depreciation and A mortization” in the consolidated s tatement s of profit or loss and other comprehensive income.
At the end of each reporting period,the Group assesses 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 can not be reversed in future periods.
a b . Critical accounting estimates and judgements
Estimates and judgments 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 makes 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 the 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.
33
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six 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 b . Critical Accounting Estimates and Judgements(continued)
i. Retirement benefits (continued)
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 benefit obligations.
Other key assumptions for retirement benefit obligations are based in part on current market conditions. Additional information is disclosed in Notes 29 and 3 0.
ii. Useful lives of property and equipment
The Group estimates the useful lives of its 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 reviews its estimates of useful lives at least each financial year-end and such estimates are updated if expectations differ from previous estimates due to changes in expectation of physical wear and tear, technical or commercial obsolescence and legal or other limitations on the continuing 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 s of property and equipment are disclosed in Note 9 .
iii. Provision for impairment of receivables
The Group assesses whether there is objective evidence that trade and other 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 amounts of provision for impairment of receivables are disclosed in Note 5.
iv. Income taxes
Significant judgment 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 amounts of income tax are disclosed in Note 26 .
34
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3 . CASH AND CASH EQUIVALENTS
The breakdown of cash and cash equivalents is as follows:
35
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3 .CASH AND CASH EQUIVALENTS (continued)
Interest rates per annum on time deposits are as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Rupiah |
3.75%-9.75% |
|
3.20%-10.00% |
|
Foreign currencies |
0.30%-2.00% |
|
0.10%-2.00% |
|
The related parties in which t he Group place s its funds are state-owned banks. The Group placed the majority of its cash and cash equivalentsin 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 31 for details of related party transactions.
36
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
4 . OTHER CURRENT FINANCIAL ASSETS
The breakdown of other current financial assets is as follows:
|
|
|
June 30, 201 7 |
|
December 31, 201 6 |
|
||||
|
|
|
Balance |
|
Balance |
|
||||
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Time deposits |
|
|
|
|
|
|
|
|
|
|
Related parties |
|
|
|
|
|
|
|
|
|
|
BNI |
Rp |
|
- |
|
- |
|
- |
|
63 |
|
Third parties |
|
|
|
|
|
|
|
|
|
|
UOB |
US$ |
|
14 |
|
186 |
|
1 |
|
13 |
|
Total time deposits |
|
|
|
|
186 |
|
|
|
76 |
|
Available-for-sale financial assets |
|
|
|
|
|
|
|
|
|
|
Related parties |
|
|
|
|
|
|
|
|
|
|
PT Bahana TCW Investment Mangement (”Bahana TCW”) |
Rp |
|
- |
|
348 |
|
- |
|
559 |
|
PT Mandiri Manajemen Investasi |
Rp |
|
- |
|
507 |
|
- |
|
500 |
|
State-owned enterprises |
US$ |
|
- |
|
- |
|
4 |
|
55 |
|
Government |
US$ |
|
- |
|
- |
|
2 |
|
27 |
|
Sub-total |
|
|
|
|
855 |
|
|
|
1,141 |
|
Third parties |
Rp |
|
- |
|
17 |
|
- |
|
17 |
|
Total available-for-sale financial assets |
|
|
|
|
872 |
|
|
|
1,158 |
|
Escrow accounts |
Rp |
|
- |
|
112 |
|
- |
|
112 |
|
|
US$ |
|
2 |
|
23 |
|
2 |
|
22 |
|
Others |
Rp |
|
- |
|
113 |
|
- |
|
98 |
|
|
US$ |
|
0 |
|
2 |
|
- |
|
- |
|
|
AUD |
|
- |
|
- |
|
0 |
|
5 |
|
Total |
|
|
|
|
1,308 |
|
|
|
1,471 |
|
The t ime deposits have maturities of more than three months but not more than one year, with interest rates as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Rupiah |
- |
|
5.75%-6.00% |
|
Foreign currencies |
0.50%-1.75% |
|
0.58%-1.64% |
|
Refer to Note 3 1 for details of related party transactions.
37
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
5 . TRADERECEIVABLES
Trade receivables arise from services provided to both retail and non-retail customers, with details as follows:
a. By debtor
(i) Related parties
|
June 30, 201 7 |
|
December 31, 201 6 |
|
State-owned enterprises |
706 |
|
151 |
|
PT Indosat Tbk (“Indosat”) |
527 |
|
370 |
|
Indonusa |
475 |
|
431 |
|
Others |
511 |
|
3 48 |
|
Total |
2,219 |
|
1 ,300 |
|
Provision for impairment of receivables |
(283 |
) |
(406 |
) |
Net |
1,936 |
|
894 |
|
(ii) Third parties
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Individual and business subscribers |
11,039 |
|
7, 801 |
|
Overseas international carriers |
1,215 |
|
1,252 |
|
Total |
12,254 |
|
9,053 |
|
Provision for impairment of receivables |
(3,032 |
) |
(2,584 |
) |
Net |
9,222 |
|
6 , 469 |
|
b. By age
(i) Related parties
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Up to 3 months |
1,536 |
|
690 |
|
3 to 6 months |
91 |
|
39 |
|
More than 6 months |
592 |
|
571 |
|
Total |
2,219 |
|
1,300 |
|
Provision for impairment of receivables |
(283 |
) |
(406 |
) |
Net |
1,936 |
|
894 |
|
(ii) Third parties
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Up to 3 months |
7,889 |
|
5, 566 |
|
3 to 6 months |
836 |
|
658 |
|
More than 6 months |
3,529 |
|
2, 829 |
|
Total |
12,254 |
|
9,053 |
|
Provision for impairment of receivables |
(3,032 |
) |
(2,584 |
) |
Net |
9,222 |
|
6 , 469 |
|
38
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES (continued)
b. By age (continued)
(iii) Aging of total trade receivables
|
June 30, 2017 |
|
December 31, 201 6 |
|
||||
|
Gross |
|
Provision for impairment of receivables |
|
Gross |
|
Provision for impairment of receivables |
|
Not past due |
7,142 |
|
311 |
|
4,535 |
|
177 |
|
Past due up to 3 months |
2,283 |
|
251 |
|
1,721 |
|
401 |
|
Past due more than 3 to 6 months |
927 |
|
327 |
|
697 |
|
495 |
|
Past due more than 6 months |
4,121 |
|
2,426 |
|
3,400 |
|
1,917 |
|
Total |
14,473 |
|
3,315 |
|
10,353 |
|
2,990 |
|
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
June 30, 2017 and December
3
1
,
2016
, the carrying amount
s
of
trade receivables of the Group considered past due but not impaired amounted to
R
p4,327 billion
and
Rp3,005 billio
n
, 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
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Rupiah |
2,1 68 |
|
1,300 |
|
U.S. dollar |
5 1 |
|
0 |
|
Others |
0 |
|
0 |
|
Total |
2,219 |
|
1,300 |
|
Provision for impairment of receivables |
(283 |
) |
(406 |
) |
Net |
1,936 |
|
894 |
|
(ii)Third partie s
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Rupiah |
11, 004 |
|
7,565 |
|
U.S. dollar |
1,2 13 |
|
1,437 |
|
Australian dollar |
30 |
|
40 |
|
Others |
7 |
|
11 |
|
Total |
12,254 |
|
9,053 |
|
Provision for impairment of receivables |
(3,032 |
) |
(2,584 |
) |
Net |
9,222 |
|
6,469 |
|
39
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES (continued)
d. Movements in the provision for impairment of receivables
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Beginning balance |
2,990 |
|
3,048 |
|
Provision recognized during the year (Note 25) |
325 |
|
743 |
|
Receivables written off |
- |
|
(801 |
) |
Ending balance |
3,315 |
|
2,990 |
|
The receivables written off relate to both relatedparty and thirdparty trade receivables.
Management believes that the provision for impairment of trade receivables is adequate to cove r losses on uncollectible trade receivables.
As of June 3 0 , 201 7 , certain trade receivables of the subsidiaries amounting to R p4,535 billion have been pledged as collateral under lending agreements (Notes 15, 16b and 16c).
Refer to Note 3 1 for details of related party transactions.
6 . INVENTORIES
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Components |
342 |
|
299 |
|
SIM cards and blank prepaid vouchers |
135 |
|
168 |
|
Others |
709 |
|
164 |
|
Total |
1 , 186 |
|
631 |
|
Provision for obsolescence |
|
|
|
|
Components |
(18 |
) |
(18 |
) |
SIM cardsand blank prepaid vouchers |
(29 |
) |
(29 |
) |
Others |
0 |
|
0 |
|
Total |
(47 |
) |
(47 |
) |
Net |
1,139 |
|
584 |
|
Movements in the provisionfor obsolescence are as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Beginning balance |
47 |
|
41 |
|
Provision recognized during the period |
- |
|
11 |
|
Inventory writ ten off |
- |
|
(5 |
) |
Ending balance |
47 |
|
47 |
|
The inventoriesrecognized as expense andincluded in operations, maintenance, andtelecommunication service expenses as of June 30, 2017 and 2016 amounted to Rp1,268 billion and Rp1,015 billion, respectively(Note 24).
Management believes that the provision is adequate to cover losses from decline in inventory value due to obsolescence.
Certain inventories of the subsidiaries amounting to Rp256 billion have been pledged as collateral under lending agreements (Notes 1 5 , 16b and 16c ).
As of June 30, 2017 and December 3 1 , 2016 , modules and components held by the Group with book value amounting to Rp197 billion and Rp199 billion, respectively, ha ve been insured against fire, theft, and other specific risks .M odules are recorded as part of property and equipment.Total sum insured as of June 30, 2017 and December 3 1 , 2016 amounted to Rp210 billion and Rp220 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of inventories arising from the insured risks .
40
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
7 . ADVANCES AND PREPAID EXPENSES
|
June 30, 2017 |
|
December 31, 201 6 |
|
Prepaid rental |
1,883 |
|
1 , 234 |
|
Frequency license (Notes 34 c.i and 34 c.ii) |
1,430 |
|
3 , 056 |
|
Advances |
402 |
|
394 |
|
Salaries |
351 |
|
229 |
|
Advance to employee |
189 |
|
32 |
|
Others |
1,115 |
|
301 |
|
Total |
5,370 |
|
5, 246 |
|
Refer to Note 31 for details of related party transactions.
8 . LONG-TERM INVESTMENTS
|
June 30, 2017 |
|
||||||||||||
|
Percentage o f ownership |
|
Beginning balance |
|
Additions (Deductions) |
|
Share ofnet profit (loss) of associated company |
|
Dividend |
|
Share of o ther comprehensive income of associated company |
|
Ending balance |
|
Long-term investments in associated companies : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tiphone a |
24.43 |
|
1,488 |
|
- |
|
44 |
|
- |
|
(2 |
) |
1,530 |
|
Indonusa b |
20.00 |
|
221 |
|
- |
|
- |
|
- |
|
- |
|
221 |
|
Teltranet c |
51.00 |
|
38 |
|
- |
|
(10 |
) |
- |
|
- |
|
28 |
|
PT Integrasi Logistik Cipta Solusi (“ILCS”) e |
49.00 |
|
42 |
|
- |
|
1 |
|
- |
|
- |
|
43 |
|
Telin Malaysia f |
49.00 |
|
0 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
CSM g |
25.00 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Sub-total |
|
|
1,789 |
|
- |
|
35 |
|
- |
|
(2 |
) |
1,822 |
|
Other long-term investments |
|
|
58 |
|
44 |
|
- |
|
- |
|
- |
|
102 |
|
Total Long-term investments |
|
|
1,847 |
|
44 |
|
35 |
|
- |
|
(2 |
) |
1,924 |
|
Summarized financial information of the Group’s investments accounted under the equity method for 201 7 :
|
Tiphone ** |
|
Indonusa * |
|
Teltranet |
|
ILCS |
|
TelinMalaysia |
|
CSM * |
|
Statements of financial position |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
6,927 |
|
170 |
|
109 |
|
147 |
|
39 |
|
161 |
|
Non-current assets |
738 |
|
444 |
|
93 |
|
18 |
|
13 |
|
761 |
|
Current liabilities |
(538 |
) |
(532 |
) |
(77 |
) |
(77 |
) |
(88 |
) |
(594 |
|
Non-current liabilities |
(3,773 |
) |
(405 |
) |
(71 |
) |
(1 |
) |
- |
|
(1,206 |
) |
Equity (deficit) |
3,354 |
|
(323 |
) |
54 |
|
87 |
|
(3 6 |
) |
(878 |
) |
Statements of profit or loss andother comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
6,414 |
|
605 |
|
64 |
|
51 |
|
56 |
|
131 |
|
Cost of revenues and operating expenses |
(6,199 |
) |
(583 |
) |
(90 |
) |
(48 |
) |
(68 |
) |
(221 |
) |
Other income (expenses) including finance costs - net |
(58 |
) |
(17 |
) |
(1 |
) |
- |
|
- |
|
(88 |
) |
Profit (loss) before tax |
15 7 |
|
5 |
|
(27 |
) |
3 |
|
(12 |
) |
(178 |
) |
Income tax benefit (expense) |
(40 |
) |
(33 |
) |
- |
|
- |
|
- |
|
- |
|
Profit (loss) for the period |
117 |
|
(28 |
) |
(27 |
) |
3 |
|
(12 |
) |
(178 |
) |
Other comprehensive income (loss) |
(9) |
|
7 |
|
- |
|
- |
|
- |
|
- |
|
Total comprehensive income
(loss)
|
108 |
|
(21 |
) |
(27 |
) |
3 |
|
(12 |
) |
(178 |
) |
* Using financial information as of December 31, 2016 and for the period then ended.
** Using financial information as of March 31, 2017 and for the three months period then ended.
41
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
8. LONG-TERM INVESTMENTS (continued)
|
December 31, 2016 |
|
||||||||||||
|
Percentage o f ownership |
|
Beginning balance |
|
Additions (Deductions) |
|
Share ofnet profit (loss) of associated company |
|
Dividend |
|
Share of o ther comprehensive income of associated company |
|
Ending balance |
|
Long-term investments in associated companies : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tiphone a |
24.43 |
|
1,404 |
|
- |
|
10 8 |
|
(2 3 |
) |
(1 |
) |
1,488 |
|
Indonusa b |
20.00 |
|
221 |
|
- |
|
- |
|
- |
|
- |
|
221 |
|
Teltranet c |
51.00 |
|
71 |
|
- |
|
(33 |
) |
- |
|
- |
|
38 |
|
PTMelon Indonesia (“Melon”) d |
51.00 |
|
5 0 |
|
(6 7 |
) |
17 |
|
- |
|
- |
|
- |
|
PT Integrasi Logistik Cipta Solusi (“ILCS”) e |
49.00 |
|
40 |
|
- |
|
2 |
|
- |
|
- |
|
42 |
|
Telin Malaysia f |
49.00 |
|
6 |
|
- |
|
(6 |
) |
- |
|
- |
|
0 |
|
CSM g |
25.00 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Sub-total |
|
|
1,79 2 |
|
(6 7 |
) |
8 8 |
|
(2 3 |
) |
(1 |
) |
1,789 |
|
Other long-term investments |
|
|
15 |
|
43 |
|
- |
|
- |
|
- |
|
58 |
|
Total Long-term investments |
|
|
1,80 7 |
|
(2 4 |
) |
8 8 |
|
(2 3 |
) |
(1 |
) |
1,847 |
|
Summarized financial information of the Group’s investments accounted under the equity method for 2016:
|
Tiphone |
|
Indonusa |
|
Teltranet |
|
ILCS |
|
Telin Malaysia |
|
CSM |
|
Statements of financial position |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
7,709 |
|
170 |
|
66 |
|
131 |
|
9 |
|
161 |
|
Non-current assets |
743 |
|
444 |
|
8 8 |
|
29 |
|
1 0 |
|
761 |
|
Current liabilities |
(1,248 |
) |
(532 |
) |
( 78 |
) |
(73 |
) |
(3 5 |
) |
(594 |
) |
Non-current liabilities |
(3,762 |
) |
(405 |
) |
(2 |
) |
(1 |
) |
(6 |
) |
(1,206 |
) |
Equity (deficit) |
3,442 |
|
(323 |
) |
74 |
|
86 |
|
(22 |
) |
(878 |
) |
Statements of profit or loss andother comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
27,310 |
|
605 |
|
66 |
|
116 |
|
8 |
|
13 1 |
|
Cost of revenues and operating expenses |
(26,445 |
) |
(583 |
) |
(149 |
) |
(112 |
) |
(4 3 |
) |
(22 1 |
) |
Other income (expenses) including finance costs - net |
(231 |
) |
(17 |
) |
(3 |
) |
0 |
|
- |
|
( 88 |
) |
Profit (loss) before tax |
634 |
|
5 |
|
(86 |
) |
4 |
|
(3 5 |
) |
( 17 8 |
) |
Income tax benefit (expense) |
(166 |
) |
(33 |
) |
2 1 |
|
0 |
|
- |
|
- |
|
Profit (loss) for the year |
468 |
|
(28 |
) |
(6 5 |
) |
4 |
|
(3 5 |
) |
( 17 8 |
) |
Other comprehensive income (loss) |
(5 |
) |
7 |
|
(0 |
) |
(0 |
) |
- |
|
- |
|
Total comprehensive income (loss) for the year |
46 3 |
|
(21 |
) |
(6 5 |
) |
4 |
|
(3 5 |
) |
( 17 8 |
) |
a Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business , such asfor celullar phone including spare parts, accessories, pulse reload vouchers , repair service and content provider through its subsidiaries.On September 18, 2014, the Company through P ins acquired 25% ownership in Tiphone for Rp1,395 billion.
As of June 30, 2017 and December 3 1 , 2016, the fair value of the investment amount ed to R p2,149 billion and Rp1, 500 billion, respectively. The fair value was calculated by multiplying the number of shares by the published price quotation as of June 30, 2017 and December 3 1 , 2016 amounting to R p1,225 and Rp 855 per share, respectively.
Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of December 31, 2016 is as follows :
|
2016 |
|
Assets |
8,452 |
|
Liabilities |
(5,010 |
) |
Net assets |
3,442 |
|
Group’s proportionate share of net assets (24.43% in 2016) |
841 |
|
Goodwill |
647 |
|
Carrying amount of long-term investment |
1,488 |
|
42
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
8 . LONG-TERM INVESTMENTS (continued)
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 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 T eltranet is accounted for under the equity method , which covered by an agreement between Metra and Telstra Holding Singapore Pte. Ltd. dated August 29, 2014. Teltranet is engaged in communication system services. Metra does not have control as it does not determin ethe financial and operating policies of Teltranet.
d Melon previously was an associated company. In 2016, the Group purchased 49% state in Melon through Metranet this Melon became a consolidated subsidiary (Note 1d)
e ILCS is engaged in providing E-trade logistic services and other related services.
f Telin Malaysia is engaged in telecommunication services in Malaysia. The unrecognized share of losses of Telin Malaysia for the year ended June 30, 2017 is Rp8 billion.
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, 2016 is Rp 219 billion.
9. PROPERTY AND EQUIPMENT
|
|
January 1, 201 7 |
|
Additions |
|
Deductions |
|
Reclassifications/ T ranslations |
|
June 30, 2017 |
|
At cost : |
|
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
|
Land rights |
|
1,417 |
|
12 |
|
- |
|
- |
|
1,429 |
|
Buildings |
|
7,837 |
|
8 |
|
- |
|
309 |
|
8,154 |
|
Leasehold improvements |
|
1,116 |
|
16 |
|
(21 |
) |
42 |
|
1,153 |
|
Switching equipment |
|
20,490 |
|
163 |
|
(864 |
) |
414 |
|
20,203 |
|
Telegraph, telex and data communication equipment |
|
1,586 |
|
- |
|
- |
|
(3 |
) |
1,583 |
|
Transmission installation and equipment |
|
121,552 |
|
701 |
|
(1,084 |
) |
6, 680 |
|
127,849 |
|
Satellite, earth station and equipment |
|
8,445 |
|
40 |
|
- |
|
3,340 |
|
11,825 |
|
Cable network |
|
44,791 |
|
2,148 |
|
(167 |
) |
(83 |
) |
46,689 |
|
Power supply |
|
15,022 |
|
26 |
|
(170 |
) |
669 |
|
15,547 |
|
Data processing equipment |
|
12,515 |
|
35 |
|
(164 |
) |
573 |
|
12,959 |
|
Other telecommunications peripherals |
|
700 |
|
96 |
|
- |
|
- |
|
796 |
|
Office equipment |
|
1,4 5 3 |
|
79 |
|
(29 |
) |
(91 |
) |
1,412 |
|
Vehicles |
|
387 |
|
48 |
|
(3 |
) |
6 |
|
438 |
|
Other equipment |
|
100 |
|
- |
|
- |
|
(1 |
) |
99 |
|
Property under construction |
|
4,550 |
|
9,479 |
|
(76 |
) |
(8,859 |
) |
5,094 |
|
Assets under finance lease |
|
|
|
|
|
|
|
|
|
|
|
Transmission installation and equipment |
|
5,354 |
|
182 |
|
- |
|
(20 |
) |
5,516 |
|
Data processing equipment |
|
84 |
|
- |
|
(52 |
) |
- |
|
32 |
|
Vehicles |
|
135 |
|
16 |
|
- |
|
(1 |
) |
150 |
|
Office equipment |
|
76 |
|
- |
|
- |
|
- |
|
76 |
|
CPE assets |
|
22 |
|
- |
|
- |
|
- |
|
22 |
|
Power supply |
|
215 |
|
- |
|
- |
|
- |
|
215 |
|
RSA assets |
|
252 |
|
- |
|
- |
|
- |
|
252 |
|
Total |
|
248,099 |
|
13,049 |
|
(2,630 |
) |
2,975 |
|
261,493 |
|
43
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9 . PROPERTY AND EQUIPMENT (continued)
|
|
January 1, 201 7 |
|
Additions |
|
Deductions |
|
Reclassifications/ T ranslations |
|
June 30, 2017 |
|
Accumulated depreciation and impairment losses: |
|
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
|
Buildings |
|
2,435 |
|
158 |
|
- |
|
(5 |
) |
2,588 |
|
Leasehold improvements |
|
692 |
|
71 |
|
(19 |
) |
- |
|
744 |
|
Switching equipment |
|
16,650 |
|
699 |
|
(862 |
) |
(5 |
) |
16,482 |
|
Telegrap h , telex and data communication equipment |
|
333 |
|
179 |
|
- |
|
- |
|
512 |
|
Transmission installation and equipment |
|
62,302 |
|
5,108 |
|
(993 |
) |
(30 |
) |
66,387 |
|
Satellite, earth station and equipment |
|
7,098 |
|
255 |
|
- |
|
(1 |
) |
7,352 |
|
Cable network |
|
20,301 |
|
829 |
|
(166 |
) |
(121 |
) |
20,843 |
|
Power supply |
|
10,164 |
|
613 |
|
(113 |
) |
(4 |
) |
10,660 |
|
Data processing equipment |
|
9,468 |
|
625 |
|
(152 |
) |
- |
|
9,941 |
|
Other telecommunications peripherals |
|
461 |
|
48 |
|
- |
|
- |
|
509 |
|
Office equipment |
|
846 |
|
88 |
|
(21 |
) |
(3 |
) |
910 |
|
Vehicles |
|
168 |
|
31 |
|
(2 |
) |
(2 |
) |
195 |
|
Other equipment |
|
99 |
|
- |
|
- |
|
- |
|
99 |
|
Assets unde finance lease |
|
|
|
|
|
|
|
|
|
|
|
Transmission installation and equipment |
|
2,054 |
|
289 |
|
- |
|
- |
|
2,343 |
|
Data processing equipment |
|
44 |
|
15 |
|
- |
|
- |
|
59 |
|
Vehicles |
|
32 |
|
14 |
|
- |
|
- |
|
46 |
|
Office equipment |
|
94 |
|
18 |
|
(41 |
) |
- |
|
71 |
|
CPE assets |
|
19 |
|
1 |
|
- |
|
- |
|
20 |
|
Power supply |
|
98 |
|
11 |
|
- |
|
- |
|
109 |
|
RSA assets |
|
243 |
|
6 |
|
- |
|
- |
|
249 |
|
Total |
|
133,601 |
|
9,058 |
|
(2,369 |
) |
(171 |
) |
140,119 |
|
Net Book Value |
|
114, 498 |
|
|
|
|
|
|
|
121,374 |
|
44
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9 . PROPERTY AND EQUIPMENT (continued)
|
|
January 1, 2016 |
|
Acquisition |
|
Additions |
|
Deductions |
|
Reclassifications/ T ranslations |
|
December 31, 2016 |
|
At cost : |
|
|
|
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Land rights |
|
1,2 70 |
|
89 |
|
59 |
|
(1 |
) |
- |
|
1,417 |
|
Buildings |
|
6,033 |
|
10 |
|
311 |
|
(3 |
) |
1 , 486 |
|
7,837 |
|
Leasehold improvements |
|
1,036 |
|
- |
|
13 |
|
(37 |
) |
10 4 |
|
1,116 |
|
Switching equipment |
|
19,823 |
|
- |
|
21 8 |
|
(160 |
) |
609 |
|
20,490 |
|
Telegraph, telex and data communication equipment |
|
876 |
|
- |
|
7 51 |
|
(41 |
) |
- |
|
1,586 |
|
Transmission installation and equipment |
|
119,047 |
|
- |
|
2, 603 |
|
( 11 , 319 |
) |
11,221 |
|
121,552 |
|
Satellite, earth station and equipment |
|
8,146 |
|
- |
|
80 |
|
- |
|
219 |
|
8,445 |
|
Cable network |
|
37,887 |
|
- |
|
6, 746 |
|
(3 02 |
) |
460 |
|
44,791 |
|
Power supply |
|
13,822 |
|
- |
|
1 61 |
|
(77 |
) |
1,1 16 |
|
15,022 |
|
Data processing equipment |
|
11,351 |
|
12 |
|
3 18 |
|
(82 |
) |
9 16 |
|
12,515 |
|
Other telecommunications peripherals |
|
632 |
|
- |
|
73 |
|
- |
|
(5 |
) |
700 |
|
Office equipment |
|
1,062 |
|
5 |
|
1 39 |
|
(12 |
) |
25 9 |
|
1,4 5 3 |
|
Vehicles |
|
475 |
|
- |
|
60 |
|
(147 |
) |
(1 |
) |
387 |
|
Other equipment |
|
99 |
|
- |
|
1 |
|
- |
|
- |
|
100 |
|
Property under construction |
|
4,580 |
|
- |
|
1 7 , 169 |
|
- |
|
(17, 199 |
) |
4,550 |
|
Assets under finance lease |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission installation and equipment |
|
5,940 |
|
- |
|
229 |
|
(815 |
) |
- |
|
5,354 |
|
Data processing equipment |
|
63 |
|
- |
|
77 |
|
(56 |
) |
- |
|
84 |
|
Vehicles |
|
94 |
|
- |
|
63 |
|
(2 2 |
) |
- |
|
135 |
|
Office equipment |
|
73 |
|
- |
|
3 |
|
- |
|
- |
|
76 |
|
CPE assets |
|
22 |
|
- |
|
- |
|
- |
|
- |
|
22 |
|
Power supply |
|
90 |
|
- |
|
125 |
|
- |
|
- |
|
215 |
|
RSA assets |
|
252 |
|
- |
|
- |
|
- |
|
- |
|
252 |
|
Total |
|
232,673 |
|
116 |
|
29,199 |
|
( 13 , 074 |
) |
(815 |
) |
248,099 |
|
45
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9 . PROPERTY AND EQUIPMENT (continued)
|
|
January 1, 2016 |
|
Acquisition |
Additions |
|
Deductions |
|
Reclassifications/ T ranslations |
|
December 31, 2016 |
|
Accumulated depreciation and impairment losses: |
|
|
|
|
|
|
|
|
|
|
|
|
Directly acquired assets |
|
|
|
|
|
|
|
|
|
|
|
|
Buildings |
|
2,141 |
|
- |
290 |
|
( 2 |
) |
6 |
|
2,435 |
|
Leasehold improvements |
|
623 |
|
- |
106 |
|
(37 |
) |
- |
|
692 |
|
Switching equipment |
|
15,223 |
|
- |
1,588 |
|
(160 |
) |
( 1 |
) |
16,650 |
|
Telegrap h , telex and data communication equipment |
|
4 |
|
- |
329 |
|
- |
|
- |
|
333 |
|
Transmission installation and equipment |
|
63,063 |
|
- |
9,957 |
|
( 10 , 686 |
) |
( 32 |
) |
62,302 |
|
Satellite, earth station and equipment |
|
6,706 |
|
- |
415 |
|
- |
|
(2 3 |
) |
7,098 |
|
Cable network |
|
19,524 |
|
- |
1,5 34 |
|
(30 2 |
) |
( 455 |
) |
20,301 |
|
Power supply |
|
9,114 |
|
- |
1,1 45 |
|
(70 |
) |
( 25 |
) |
10,164 |
|
Data processing equipment |
|
8,503 |
|
- |
1, 067 |
|
(62 |
) |
(4 0 |
) |
9,468 |
|
Other telecommunications peripherals |
|
385 |
|
- |
7 7 |
|
- |
|
(1 |
) |
461 |
|
Office equipment |
|
713 |
|
- |
1 41 |
|
(11 |
) |
3 |
|
846 |
|
Vehicles |
|
166 |
|
- |
69 |
|
(66 |
) |
( 1 |
) |
168 |
|
Other equipment |
|
99 |
|
- |
- |
|
- |
|
- |
|
99 |
|
Assets unde finance lease |
|
|
|
|
|
|
|
|
|
|
|
|
Transmission installation and equipment |
|
2,327 |
|
- |
54 2 |
|
(815 |
) |
- |
|
2,054 |
|
Data processing equipment |
|
53 |
|
- |
47 |
|
(5 6 |
) |
- |
|
44 |
|
Vehicles |
|
13 |
|
- |
19 |
|
- |
|
- |
|
32 |
|
Office equipment |
|
51 |
|
- |
43 |
|
- |
|
- |
|
94 |
|
CPE assets |
|
17 |
|
- |
2 |
|
- |
|
- |
|
19 |
|
Power supply |
|
18 |
|
- |
80 |
|
- |
|
- |
|
98 |
|
RSA assets |
|
230 |
|
- |
13 |
|
- |
|
- |
|
243 |
|
Total |
|
128,973 |
|
- |
17,464 |
|
( 12 , 267 |
) |
( 569 |
) |
133,601 |
|
Net Book Value |
|
103,700 |
|
|
|
|
|
|
|
|
114, 498 |
|
46
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9 . PROPERTY AND EQUIPMENT (continued)
a. Gain on disposal or sale of property and equipment
|
201 7 |
|
201 6 |
|
Proceeds from sale of property and equipment |
298 |
|
210 |
|
Net book value |
(247 |
) |
(7 |
) |
Gain on disposal or sale of property and equipment |
51 |
|
203 |
|
b. Asset impairment
In 2014, the Group decided to cease its fixed wireless business no later than December 1 4 , 201 5 . The Company assessed the recoverable amount to be Rp549 billion 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 were 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 the 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.
Loss on impairment of assets is recognized as part of “Depreciation and Amortization” in the consolidated s tatement of profit or loss and other comprehensive income.
In connection with the restructuring of fixed wireless business (Note 3 4 c.ii), the Company accelerated the depreciation of its fixed wireless assets. As of December 31, 2015, all of the Company’s fixed wireless assets have been fully depreciated.
In 2016, the Company derecognized its fixed wireless assets with cost and accumulated depreciation amounting to Rp5,203 billion, respectively.
Management believes that there is no indication of impairment in the assets of other CGUs as of December 31, 2016.
c. Others
(i) Interest capitalized to property under construction amounted to Rp195 billion and Rp323 billion for the six months period ended June 30, 2017 and 2016, respectively. The capitalization rate used to determine the amount of borrowing costs eligible for capitalization ranged from 2.69% to 11% and 3.94% to 11.00% for the six months period ended June 30, 2017 and 2016, respectively.
(ii) No foreign exchange loss was capitalized as part of property under construction for the six months period ended June 30, 2017 and for the year ended December 3 1 , 2016 .
47
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9 . PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(iii) As of June 30, 2017 and 2016, the Group received proceeds from the insurance claim on lost and broken property and equipment, with a total value of Rp146 billion and Rp25 billion , respectively , and were recorded as part of “Other Income” in the consolidated statement s of profit or loss and other comprehensive income. As ofJune 30, 201 7 dan 201 6 , the net carrying value s of those assets of R p16 billion and Rp 21 billion, respectively, were charged to the consolidated statement s of profit or loss and other comprehensive income.
(iv) In 2017, Telkomsel decided to replace certain equipment units with net carrying amount of Rp464 billion, as part of its modernization program. Accordingly, Telkomsel accelerated the depreciation of such equipment units . The impact of the change was an increase in the depreciation expense for the six month s period ended June 30 , 201 7 amounting to R p230 billion. The impact of the accelerated the depreciation in future periods is an increase in the depreciation expenses asfollows:
Years |
|
Amount |
|
2017 (6 months) |
|
58 |
|
2018 |
|
47 |
|
In 2015, Telkomsel decided to replace certain equipment units with a net carrying amount of Rp1,967 billion, as part of itsmodernization program. Accordingly, Telkomsel accelerated the depreciation of such equipment units. The impact of the acceleration was an increase in the depreciation expense for the six month s period ended June 30 , 201 7 amounting to Rp30 billion .
In 2014, the useful li ves of Telkomsel’s buildings and transmissions w erechanged from 20 years to 40 years , and from 10 years to 15 and 20 years, respectively, to reflect the current economic li ves of the buildings and the transmissions. The impact of reduction in depreciation expense for the six months period ended June 30, 2017 amounting to Rp99 billion. The impact of the changes in the estimated useful li ves of the buildings and transmissions in future periods is an increase in the profit before income taxas follows:
Years |
|
Amount |
|
2017 (6 months) |
|
99 |
|
2018 |
|
135 |
|
(v) Exchange of property and equipment
In 2012 and 2011, the Company entered into a Procurement and Installation Agreement for the Modernization of the Copper Cable Network through Optimalization of Asset Copper Cable Network through Trade In/Trade Off method with PT L en Industri (“LEN”) and PT I ndustri Telkomunikasi Indonesia (“I NTI ”) , respectively.
In 201 7 and 201 6 , the Company derecognized the copper cable network asset with net carrying value of R p883 million and Rp 3 billion , respectively, and recorded the fiber optic network asset from the exchange transaction of R p1,041 billion and Rp 801 billion , respectively.
For the period ended June 30, 2017 and December 31, 201 6 , Telkomsel’s certain equipment units with net carrying amount of Rp79 billion and Rp636 billion, respectively, were exchanged with equipment from Nokia Siemens Network Oy (“NSN Oy”) and PT Huawei Tech Investment (“Huawei”).As of June 30, 201 7 , Telkomsel’s equipment units with net carrying amount of R p10 billion are going to be exchanged with equipment from Nokia Siemens Network Oy (“NSN Oy”) and Huawei and, therefore, these equipment units were reclassified as assets held for sale in the consolidated statements of financial position.
48
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9 . PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(vi) The Group owns several pieces of land located throughout Indonesia with Building Use Rights (“Hak Guna Bangunan” or “HGB”) for a period of 10-45 years which will expire between 2017 and 2053. Management believes that there will be no issue in obtaining the extension of the land rights when they expire.
(vii) As of June 3 0 , 201 7 , the Group’s property and equipment excluding land rights, with net carrying amount of R p108,441 billion were insured against fire, theft, earthquake and other specified risks, including business interruption, under blanket policies totalling R p10,323 billion , US$ 1,283 million , HK D3 million and SGD 428 million. Management believes that the insurance coverage is adequate to cover potential losses from the insured risks.
(viii) As of June 3 0 , 201 7 , the percentage of completion of property under construction was around 54.61% of the total contract value, with estimated dates of completion between July 2017 an d June 201 8. 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.
(ix) All assets owned by the Company have been pledged as collateral for bonds (Notes 16b.i and 1 6 b .ii ). Certain property and equipment of the Company’s subsidiaries with gross carrying value amounting to Rp12,106 billion have been pledged as collateral under lending agreements (Notes 1 5 and 16 ).
(x) As of June 3 0 , 201 7 , the cost of fully depreciated property and equipment of t he Group that are still used in operations amounted to Rp63,129 billion. The Group is currently performing modernization of network assets to replace the fully depreciated property and equipment.
(xi) In 2016 , the total fair values of land rights and buildings of t he 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 Rp28,521 billion.
(xii) Telkomsel entered into several agreements with 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 mutual agreement with the relevant parties. In addition, the Group also has lease commitments for 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 .
49
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9 . PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
Future minimum lease payments required for assets under finance lease are as follows:
Years |
|
June 30, 201 7 |
|
December 31, 201 6 |
|
2017 |
|
1,006 |
|
98 7 |
|
2018 |
|
482 |
|
892 |
|
2019 |
|
859 |
|
816 |
|
20 20 |
|
809 |
|
771 |
|
2021 |
|
767 |
|
740 |
|
Thereafter |
|
957 |
|
95 4 |
|
Total minimum lease payments |
|
4,880 |
|
5 , 160 |
|
Interest |
|
(1,021 |
) |
(1,150 |
) |
Net present value of minimum lease payments |
|
3,859 |
|
4,01 0 |
|
Current maturities (Note 1 5b ) |
|
(691 |
) |
(658 |
) |
Long-term portion (Note 1 6 ) |
|
3,168 |
|
3,35 2 |
|
The details of obligations under finance leases as ofJune 30, 2017 and December 3 1 , 2016are as follows :
|
June 30, 201 7 |
|
December 31, 201 6 |
|
PT Tower Bersama Infrastructure Tbk |
1,374 |
|
1,465 |
|
PT Profesional Telekomunikasi Indonesia |
1,209 |
|
1,295 |
|
PT Solusi Tunas Pratama |
227 |
|
241 |
|
PT Putra Arga Binangun |
204 |
|
217 |
|
PT Bali Towerindo Sentra |
106 |
|
112 |
|
Others (each below Rp 75 billion) |
739 |
|
680 |
|
Total |
3,859 |
|
4,010 |
|
1 0 . ADVANCES AND OTHER NON-CURRENT ASSETS
The breakdown of advances and other non-current assets as of June 30, 2017 and December 31, 2016 isas follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Advances for purchases of property and equipment |
2,749 |
|
5, 432 |
|
Prepaid rental - net of current portion (Note 7) |
2,725 |
|
2,4 71 |
|
Claim for tax refund - net of current portion (Note 26) |
2,302 |
|
1,428 |
|
Deferred charges |
448 |
|
387 |
|
Prepaid taxes (Note 26) |
383 |
|
1,228 |
|
Frequency license - net of current portion (Note 7) |
277 |
|
32 0 |
|
Security deposit |
142 |
|
144 |
|
Others |
105 |
|
98 |
|
Total |
9,131 |
|
11,508 |
|
50
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 0 . ADVANCES AND OTHER NON-CURRENT ASSETS (continued)
Prepaid rental covers rent of leased line and telecommunication equipment and land and building under lease agreements of t he Group with remaining rental periods ranging from 1 to 40 years.
As of June 3 0 , 201 7 and 201 6 , deferred charges represent deferred Indefeasible Right of Use (“IRU”) Agreement charges. Total amortization of deferred charges for the six month s period ended June 30, 2017 and 2016 amounted to Rp24 billion and Rp24 billion, respectively.
Refer to Note 3 1 for details of related party transactions.
1 1 . INTANGIBLE ASSETS
The details of intangible assets are as follows:
|
Goodwill |
|
Software |
|
License |
|
Other intangible assets |
|
Total |
|
Gross carrying amount: |
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 201 7 |
449 |
|
7,222 |
|
75 |
|
607 |
|
8,353 |
|
Additions |
- |
|
508 |
|
- |
|
5 |
|
513 |
|
D eduction s |
(3 |
) |
(109 |
) |
- |
|
- |
|
(112 |
) |
Reclassifications/translations |
2 |
|
(13 |
) |
6 |
|
19 |
|
14 |
|
Balance, June 30, 2017 |
448 |
|
7.608 |
|
81 |
|
631 |
|
8.768 |
|
Accumulated amortization and impairment losses : |
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 201 7 |
(29 |
) |
(4,776 |
) |
(56 |
) |
(403 |
) |
(5,264 |
) |
Amortization |
- |
|
( 523 |
) |
( 4 |
) |
(18 |
) |
(545 |
) |
D eduction s |
- |
|
113 |
|
- |
|
- |
|
113 |
|
Reclassifications/translations |
- |
|
8 |
|
(6 |
) |
(1 |
) |
1 |
|
Balance, June 30, 2017 |
(29 |
) |
(5. 178 |
) |
( 66 |
) |
(422 |
) |
(5.695 |
) |
Net Book Value |
419 |
|
2. 430 |
|
15 |
|
2 09 |
|
3. 073 |
|
|
Goodwill |
|
Software |
|
License |
|
Other intangible assets |
|
Total |
|
Gross carrying amount: |
|
|
|
|
|
|
|
|
|
|
Balance, January1, 201 6 |
336 |
|
6,267 |
|
68 |
|
580 |
|
7,251 |
|
Additions |
- |
|
925 |
|
9 |
|
27 |
|
961 |
|
D eduction s |
- |
|
- |
|
(2 |
) |
- |
|
(2 |
) |
Reclassifications/translations |
(4 |
) |
20 |
|
- |
|
- |
|
16 |
|
Acquisition |
117 |
|
10 |
|
- |
|
- |
|
127 |
|
Balance, December 31, 2016 |
449 |
|
7,222 |
|
75 |
|
607 |
|
8,353 |
|
Accumulated amortization and impairment losses : |
|
|
|
|
|
|
|
|
|
|
Balance, January1, 2016 |
(29 |
) |
(3,748 |
) |
(49 |
) |
(369 |
) |
(4,195 |
) |
Amortization |
- |
|
(1,027 |
) |
(7 |
) |
(34 |
) |
(1,068 |
) |
D eduction s |
- |
|
- |
|
- |
|
- |
|
- |
|
Reclassifications/translations |
- |
|
(1 |
) |
- |
|
- |
|
(1 |
) |
Balance, December 31, 2016 |
(29 |
) |
(4,776 |
) |
(56 |
) |
(403 |
) |
(5,264 |
) |
Net Book Value |
420 |
|
2,446 |
|
19 |
|
204 |
|
3,089 |
|
(i) Goodwill resulted from the acquisition of Sigma ( 2008 ) , AdMedika (2 010 ) , d ata c enter BDM (2012), Contact Centres Australia Pty. Ltd. ( 2014 ) , MNDG (2015), and Melon (2016) (Note 1d). In addition, there was an acquisition of 80% ownership of PT Griya Silkindo Drajatmoerni (“GSDm”) by NSI.
(ii) The amortization is presented as part of “Depreciation and Amortization” in the consolidated statements of profit or loss and other comprehensive income. The remaining amortization periods of software range from 1-5years.
( i ii) As of June 30 , 201 7 , the cost of fully amortized intangible assets that are still used in operations amounted to Rp3,273 billion.
51
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 2 . TRADE PAYABLES
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Related parties |
|
|
|
|
Purchases of equipment, materials and services |
757 |
|
1,223 |
|
Payables to other telecommunication providers |
226 |
|
324 |
|
Sub-total |
983 |
|
1,547 |
|
Third parties |
|
|
|
|
Purchases of equipment, materials and services |
7,987 |
|
9,434 |
|
Radio frequency usage charges, concession fees and Universal Service Obligation (“USO”) charges |
1,289 |
|
1,256 |
|
Payables to other telecommunication providers |
1,555 |
|
1,281 |
|
Sub-total |
10,831 |
|
11,971 |
|
Total |
11,814 |
|
13,518 |
|
Trade payables by currency are as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Rupiah |
10, 352 |
|
11,270 |
|
U.S. dollar |
1,409 |
|
2,196 |
|
Others |
53 |
|
52 |
|
Total |
11,814 |
|
13,518 |
|
Refer to Note 31 for details of related party transactions.
1 3 . ACCRUED EXPENSES
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Operation, maintenance and telecommunication services |
6,395 |
|
6 , 165 |
|
Salaries and benefits |
1,724 |
|
2 , 993 |
|
General, administrative and marketing expenses |
3,317 |
|
1 , 914 |
|
Interest and bank charges |
23 2 |
|
21 1 |
|
Total |
11,668 |
|
11,283 |
|
Refer to Note 31 for details of related party transactions.
1 4 . UNEARNED INCOME
a. Current portion of unearned income
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Prepaid pulse reload vouchers |
3,993 |
|
4, 959 |
|
T elecommunication tower leases |
371 |
|
199 |
|
Other telecommunications services |
352 |
|
189 |
|
Others |
278 |
|
216 |
|
Total |
4,994 |
|
5, 563 |
|
b. Non-current portion of unearned income
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Other telecommunications services |
381 |
|
256 |
|
Indef ea sible Right of Use |
- |
|
169 |
|
Total |
381 |
|
425 |
|
52
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 5 . SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS
a. Short-term bank loans
|
|
|
|
June 30, 201 7 |
|
December 31, 201 6 |
|
||||
|
|
|
|
Outstanding |
|
Outstanding |
|
||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency ( in millions) |
|
Rupiah equivalent |
|
Related party |
|
|
|
|
|
|
|
|
|
|
|
BNI |
|
Rp |
|
- |
|
824 |
|
- |
|
143 |
|
Third parties |
|
|
|
|
|
|
|
|
|
|
|
UOB |
|
Rp |
|
- |
|
400 |
|
- |
|
269 |
|
Bank CIMB Niaga |
|
Rp |
|
- |
|
85 |
|
- |
|
143 |
|
PT Bank DBS Indonesia |
|
Rp |
|
- |
|
243 |
|
- |
|
95 |
|
S CB |
|
Rp |
|
- |
|
39 |
|
- |
|
90 |
|
PT Bank Danamon Indonesia, Tbk (“Danamon”) |
|
Rp |
|
- |
|
150 |
|
- |
|
60 |
|
Others |
|
Rp |
|
- |
|
40 |
|
- |
|
111 |
|
Sub-total |
|
|
|
|
|
957 |
|
|
|
768 |
|
Total |
|
|
|
|
|
1,781 |
|
|
|
911 |
|
Other significant information relating to short-term bank loans as of June 30 , 201 7 is as follows:
|
Borrower |
|
Currency |
|
Total facility (in billions) |
|
Maturity date |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
UOB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 22, 2013 |
Infomedia |
|
Rp |
|
200 |
|
November 22, 2017 |
|
Monthly |
|
11.5%-12% |
|
Trade receivables (Note 5) |
|
December 20, 2016 |
Finnet |
|
Rp |
|
400 |
|
December 21, 2018 |
|
Monthly |
|
1 monthJIBOR+
|
|
None |
|
Bank CIMB Niaga |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 28, 2013 a |
GSD |
|
Rp |
|
85 |
|
J anuary1 , 201 8 |
c |
Monthly |
|
10.9%- 1 1.5 % |
|
Trade receivables
(Note 9) |
|
BNI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31, 2016 |
Telkom Infra |
|
Rp |
|
44 |
|
October 31, 2017 |
|
Monthly |
|
1 month JIBOR+3 . 35% |
|
Trade receivables (Note 5) |
|
December 31, 2016 |
Telkom Infra |
|
Rp |
|
101 |
|
November 30, 2017 |
|
Monthly |
|
1 month JIBOR+3.35% |
|
Trade receivables (Note 5) |
|
November 28, 2012 b |
Metra |
|
Rp |
|
150 |
|
May14, 2018 |
|
Monthly |
|
1 month JIBOR+2.95% |
|
None |
|
March 13, 2013 c |
Sigma |
|
Rp |
|
350 |
|
January9, 2018 |
|
Monthly |
|
1 month JIBOR+3.00% |
|
P roperty andequipment (Note 9 ) and Trade receivables (Note 5) |
|
May 26, 2017 |
Infomedia |
|
Rp |
|
380 |
|
May26, 2018 |
|
Monthly |
|
10.88% |
|
None |
|
PT. Bank DBS Indonesia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 12, 2016 |
Sigma b |
|
USD |
|
0.02 |
|
July 31, 2017 |
|
Semi-annually |
|
3.25 % (USD) / 10.75% (IDR) |
|
Trade receivables (Note 5) |
|
Danamon |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 15, 2016 |
Infomedia |
|
Rp |
|
150 |
|
December 15, 2017 |
|
Monthly |
|
11%-12% |
|
Trade receivables (Note 5) |
|
SCB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June26, 2015 |
GSD |
|
Rp |
|
39 |
|
December 30, 2017 |
c |
Monthly |
|
10.5% |
|
None |
|
The credit facilities were obtained by the Company’s subsidiaries for working capital purposes.
a Based on the latest amendment dated November 11 , 2014 .
b Facility in USD. Withdrawal can be executed in USD and IDR .
c Unsettled loan will be automatically extended.
53
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 5 . SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS (continued)
b. Current maturities of long-term borrowings
|
Notes |
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Two-step loans |
16a |
|
224 |
|
225 |
|
Bonds and notes |
16 b |
|
- |
|
1 |
|
Bank loans |
16c |
|
3.606 |
|
3,637 |
|
Obligations under finance leases |
9 c.xii |
|
691 |
|
658 |
|
Total |
|
|
4,521 |
|
4,521 |
|
1 6 . LONG-TERM LOANS AND OTHER BORROWINGS
|
Notes |
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Two-step loans |
16 a |
|
979 |
|
1,067 |
|
Bonds and notes |
16b |
|
8,982 |
|
9,322 |
|
Bank loans |
16c |
|
13,943 |
|
11,929 |
|
Other borrowings |
16d |
|
1,295 |
|
697 |
|
Obligations under finance leases |
9c.xii |
|
3,168 |
|
3,352 |
|
Total |
|
|
28,367 |
|
26,367 |
|
Scheduled principal payments as of March 3 1 , 201 7 are as follows:
|
|
|
|
|
|
|
|
|
Year |
|
|
|
|
|
|
Notes |
|
Total |
|
201 8 |
|
201 9 |
|
2020 |
|
20 21 |
|
Thereafter |
|
Two-step loans |
16 a |
|
979 |
|
93 |
|
185 |
|
186 |
|
169 |
|
346 |
|
Bonds and notes |
16b |
|
8,982 |
|
- |
|
- |
|
1,995 |
|
- |
|
6,987 |
|
Bank loans |
16c |
|
13,943 |
|
1,730 |
|
3,646 |
|
3,761 |
|
1,657 |
|
3,149 |
|
Other borrowings |
16d |
|
1,295 |
|
99 |
|
199 |
|
199 |
|
199 |
|
599 |
|
Obligations under finance leases |
9 c.xii |
|
3,168 |
|
346 |
|
639 |
|
646 |
|
661 |
|
876 |
|
Total |
|
|
28,367 |
|
2,268 |
|
4,6 69 |
|
6,787 |
|
2,686 |
|
11,957 |
|
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 up to July 1994 are payable in rupiah based on the exchange rate at the date of draw down. Loans obtained after July 1994 are payable in their original currencies and any resulting foreign exchange gain or loss is borne by the Company.
|
|
|
|
June 30, 201 7 |
|
December 31, 201 6 |
|
||||
|
|
|
|
Outstanding |
|
Outstanding |
|
||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Overseas banks |
|
Yen |
|
5,759 |
|
691 |
|
6,143 |
|
707 |
|
|
|
US$ |
|
20 |
|
262 |
|
22 |
|
295 |
|
|
|
Rp |
|
- |
|
250 |
|
- |
|
290 |
|
Total |
|
|
|
|
|
1,203 |
|
|
|
1,292 |
|
Current maturities (Note 1 5 b) |
|
|
|
|
|
(224 |
) |
|
|
(225 |
) |
Long-term portion |
|
|
|
|
|
979 |
|
|
|
1,067 |
|
54
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 6 . LONG-TERM LOANS AND OTHER BORROWINGS (continued)
a. Two-step loans (continued)
Lenders |
|
Currency |
|
Principal payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
|
Overseas banks |
|
Yen |
|
Semi-annually |
|
Semi-annually |
|
2.95% |
|
|
|
|
US$ |
|
Semi-annually |
|
Semi-annually |
|
3.85% |
|
|
|
|
Rp |
|
Semi-annually |
|
Semi-annually |
|
8.25% |
|
|
The loans were intended for the development of telecommunications infrastructure and supporting telecommunications equipment. The loans will be settled semi-annually and 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 June 3 0 , 201 7 , the Company has complied with the above-mentioned ratios.
b. Bonds and notes
|
|
|
|
June 30, 201 7 |
|
December 31, 201 6 |
|
||||
|
|
|
|
Outstanding |
|
Outstanding |
|
||||
Bonds and notes |
|
Currency |
|
Original currency (in millions ) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Bonds |
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
Series B |
|
Rp |
|
- |
|
1,995 |
|
- |
|
1,995 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Series A |
|
Rp |
|
- |
|
2,200 |
|
- |
|
2,200 |
|
Series B |
|
Rp |
|
- |
|
2,100 |
|
- |
|
2,100 |
|
Series C |
|
Rp |
|
- |
|
1,200 |
|
- |
|
1,200 |
|
Series D |
|
Rp |
|
- |
|
1,500 |
|
- |
|
1,500 |
|
Medium Term Notes (“MTN”) |
|
|
|
|
|
|
|
|
|
|
|
GSD |
|
|
|
|
|
|
|
|
|
|
|
Series A |
|
Rp |
|
- |
|
0 |
|
- |
|
220 |
|
Series B |
|
Rp |
|
- |
|
0 |
|
- |
|
120 |
|
Promissory notes |
|
|
|
|
|
|
|
|
|
|
|
PT ZTE Indonesia (“ZTE”) |
|
US$ |
|
- |
|
- |
|
- |
|
1 |
|
Total |
|
|
|
|
|
8,995 |
|
|
|
9,336 |
|
Unamortized debt issuance cost |
|
|
|
|
|
(13 |
) |
|
|
(13 |
) |
Total |
|
|
|
|
|
8,982 |
|
|
|
9,323 |
|
Current maturities (Note 15b) |
|
|
|
|
|
- |
|
|
|
(1 |
) |
Long-term portion |
|
|
|
|
|
8,982 |
|
|
|
9,322 |
|
55
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 6 . LONG-TERM LOANS AND OTHER BORROWINGS (continued)
b. Bonds and notes (continued)
i. Bonds
2010
Bonds |
|
Principal |
|
Issuer |
|
Listed on |
|
Issuance date |
|
Maturity date |
|
Interest payment period |
|
Interest rate per annum |
|
Series B |
|
1,995 |
|
The Company |
|
IDX |
|
June 25, 2010 |
|
July 6, 2020 |
|
Quarterly |
|
10.20% |
|
The bonds are secured by all of the Company’s assets, movable or non-movable, either existing or in the future (Note 9c .ix). The underwriters of the bonds are PT Bahana Securities (“Bahana”) , PT Danareksa Sekuritas, and PT Mandiri Sekuritas and the trustee is Bank CIMB Niaga.
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) and infrastructure (backbone, metro network, regional metro junction, internet protocol, and satellite system) and to optimize legacy and supporting facilities (fixed wireline and wireless).
As ofJune 3 0 , 201 7, the rating of the bonds issued by PT Pemeringkat Efek Indonesia (Pefindo) is idAAA (stable outlook).
Based on the indenture trust s 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 at least 125%.
As of June 30 , 201 7 , the Company has complied with the above-mentioned ratios.
2015
Bonds |
|
Principal |
|
Issuer |
|
Listed on |
|
Issuance date |
|
Maturity date |
|
Interest payment period |
|
Interest rate 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 secured by all of the Company’s assets, movable or non-movable, either existing or in the future (Note 9c. i x). The underwriters of the bonds are Bahana, PT Danareksa Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas and the trustee is Bank Permata .
56
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 6 . LONG-TERM LOANS AND OTHER BORROWINGS (continued)
b. Bonds and notes (continued)
i. Bonds (continued)
The Company received the proceeds from the issuance of bonds on Ju ne 23 , 201 5 .
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 and support, and merger and acquisition of some domestic and international entities.
As of June 30, 2017, the rating of the bonds issued by Pefindo is idAAA (stable outlook).
Based on the indenture trust s 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 at least 125%
As ofJune 3 0 , 201 7 , the Company has complied with the above-mentioned ratios.
ii. MTN
GSD
Notes |
|
Currency |
|
Principal |
|
Issuance date |
|
Maturity date |
|
Interest payment period |
|
Interest rate per annum |
|
Series A |
|
Rp |
|
220 |
|
November 14, 2014 |
|
November 14, 2019 |
|
Semi-annually |
|
11% |
|
Series B |
|
Rp |
|
120 |
|
March 6, 2015 |
|
March 6, 2020 |
|
Semi-annually |
|
11% |
|
Total |
|
|
|
340 |
|
|
|
|
|
|
|
|
|
Based on A greement of I ssuance and A ppointment of M onitoring and I nsurance A gents of Medium Term Notes (MTN) PT Graha Sarana Duta Year 2014 dated November 13, 2014 as covered by notarial deed N o. 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 PT Kustodian Sentral Efek Indonesia (“KSEI”) as the payment agent and 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 are owned or will be owned by GSD, have been pledged as collateral for MTN (Notes 5,6, and 9c.ix)
Under to the agreement, GSD is required to comply with all covenants or restriction 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%.
On June 12, 2017, GSD has been fully paid for MTN series A amounted to Rp220 billion and series B amounted to Rp120 billion to PT Mandiri Sekuritas as an Arrenger.
57
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 6 . LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loan s
|
|
|
|
June 30, 201 7 |
|
December 31, 201 6 |
|
||||
|
|
|
|
Outstanding |
|
Outstanding |
|
||||
Lenders |
|
Currency |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Original currency (in millions) |
|
Rupiah equivalent |
|
Related parties |
|
|
|
|
|
|
|
|
|
|
|
BNI |
|
Rp |
|
- |
|
3,893 |
|
- |
|
3,222 |
|
BRI |
|
Rp |
|
- |
|
2,056 |
|
- |
|
1,871 |
|
Bank Mandiri |
|
Rp |
|
- |
|
1,720 |
|
- |
|
1,232 |
|
Sub-total |
|
|
|
|
|
7,669 |
|
|
|
6,325 |
|
Third parties |
|
|
|
|
|
|
|
|
|
|
|
Syndication of banks |
|
Rp |
|
- |
|
2,500 |
|
- |
|
3 , 650 |
|
The Bank of Tokyo-Mitsubishi-UFJ, Ltd. |
|
Rp |
|
- |
|
2,207 |
|
- |
|
2,3 61 |
|
Bank CIMB Niaga |
|
Rp |
|
- |
|
1,549 |
|
- |
|
1, 162 |
|
PT Bank Sumitomo Mitsui Indonesia |
|
Rp |
|
- |
|
601 |
|
- |
|
647 |
|
UOB |
|
Rp |
|
- |
|
500 |
|
- |
|
500 |
|
United Overseas Bank Limited (“UOB Singapore”) |
|
US$ |
|
49 |
|
653 |
|
36 |
|
484 |
|
PT Bank ANZ Indonesia |
|
Rp |
|
- |
|
440 |
|
- |
|
240 |
|
PT Bank Centra Asia, Tbk |
|
Rp |
|
- |
|
1,000 |
|
- |
|
- |
|
PT Bank ICBC Indonesia |
|
Rp |
|
- |
|
272 |
|
- |
|
- |
|
Japan Bank for International Cooperation (“JBIC”) |
|
US$ |
|
13 |
|
167 |
|
16 |
|
211 |
|
Others |
|
Rp |
|
- |
|
31 |
|
- |
|
37 |
|
Sub-total |
|
|
|
|
|
9,920 |
|
|
|
9,292 |
|
Total |
|
|
|
|
|
17,589 |
|
|
|
1 5 , 617 |
|
Unamortized debt issuance cost |
|
|
|
|
|
(40 |
) |
|
|
( 51 |
) |
|
|
|
|
|
|
17,549 |
|
|
|
1 5 , 566 |
|
Current maturities (Note 1 5b ) |
|
|
|
|
|
(3,606 |
) |
|
|
( 3 , 637 |
) |
Long-term portion |
|
|
|
|
|
13,943 |
|
|
|
1 1 , 929 |
|
Other significant information relating to bank loans as of June 30 , 201 7 is as follows:
|
|
Borrower |
|
Currency |
|
Total facility * |
|
Current period payment |
|
Principal payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
Syndication of banks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 19, 2012 (BNI, BRI and Bank Mandiri) a |
|
Dayamitra |
|
Rp |
|
2,500 |
|
900 |
|
Sem i- annually (2014-2020) |
|
Quarterly |
|
3 months JIBOR+3.00% |
|
Trade receivables (Note 5) and property and equipment (Note 9) |
|
March13 , 201 5 (BNI and BCA) a& g |
|
The Company |
|
Rp |
|
2,900 |
|
242 |
|
Semi-annually (2016-2022) |
|
Quarterly |
|
3 months JIBOR+2.5% |
|
All assets |
|
March13 , 201 5 (BNI and BCA) a& g |
|
GSD |
|
Rp |
|
100 |
|
8 |
|
Semi-annually (2016-2022) |
|
Quarterly |
|
3 months JIBOR+2.5% |
|
All assets |
|
BNI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 13, 2013 a&c |
|
Sigma |
|
Rp |
|
1, 400 |
|
40 |
|
Monthly (201 6 -2022) |
|
Monthly |
|
1 months JIBOR+3 .00 % |
|
Trade receivables (Note 5) and property and equipment (Note 9) |
|
58
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 6 . LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loan s (continued)
|
Borrower |
|
Currency |
|
Total facility * |
|
Current period payment |
|
Principal payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
BNI (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 20, 2013 |
The Company |
|
Rp |
|
1,500 |
|
188 |
|
Semi-annually (2015-201 8 ) |
|
Quarterly |
|
3 months JIBOR+2.65% |
|
None |
|
January 10 , 201 4 a& c |
Sigma |
|
Rp |
|
247 |
|
21 |
|
Monthly (2016-2022) |
|
Monthly |
|
1 month JIBOR+ 3.35 % |
|
Trade receivables (Note 5) and property and equipment (Note 9) |
|
July 21, 2014 a |
Metra |
|
Rp |
|
40 |
|
7 |
|
Semi-annually (2015-2017) |
|
Monthly |
|
10.00% |
|
Trade receivables (Note 5) and property and equipment(Note 9) |
|
November 3 , 201 4 a& f |
Telkom Infratel |
|
Rp |
|
450 |
|
93 |
|
Quarterly (201 5 -201 8 ) |
|
Monthly |
|
1 month JIBOR+3.35% |
|
Trade receivables (Note 5) |
|
April 8 , 201 5 a &b |
T elkomsel |
|
Rp |
|
1,000 |
|
667 |
|
April 14, 2018 |
|
Quarterly |
|
3 months JIBOR+ 1.9 5% |
|
None |
|
June 10, 2015 a |
Metra |
|
Rp |
|
44 |
|
7 |
|
Semi-annually (2015-201 8 ) |
|
Monthly |
|
10. 00 % |
|
Trade receivables (Note 5) and property and Equipment ( Note 9) |
|
October 12, 2015 a |
Telkom Akses |
|
Rp |
|
1,400 |
|
175 |
|
Semi-annually (2016-2019) |
|
Quarterly |
|
3 months JIBOR+2.9% |
|
Trade receivables (Note 5) , inventor ies (Note 6) , and property and equipment (Note 9) |
|
June 27, 2013 |
NSI |
|
Rp |
|
4 |
|
0 |
|
Monthly
|
|
Monthly |
|
11.00% |
|
Property and equipment
|
|
March 17, 2014 |
NSI |
|
Rp |
|
0.7 |
|
0 |
|
Monthly
|
|
Monthly |
|
12.25% |
|
Property and equipment
|
|
June 27, 2014 |
NSI |
|
Rp |
|
2.5 |
|
0 |
|
Monthly
|
|
Monthly |
|
13.5% |
|
Property and equipment
|
|
March 24, 2017 i |
Dayamitra |
|
Rp |
|
500 |
|
- |
|
Semi-annually (2019-2024) |
|
Quarterly |
|
3 months JIBOR+1.85% |
|
None |
|
March 24, 2017 i |
GSD |
|
Rp |
|
150 |
|
- |
|
Quarterly
|
|
Quarterly |
|
3 months JIBOR+2.00% |
|
None |
|
The Bank of Tokyo –Mitsubishi UFJ, Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 9, 2014 |
Dayamitra |
|
Rp |
|
600 |
|
80 |
|
Quarterly (201 6 -201 9 ) |
|
Quarterly |
|
3 months JIBOR+2.4 0 % |
|
Trade receivables (Note 5) and property and equipment(Note 9) |
|
59
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 6 . LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loan s (continued)
|
|
Borrower |
|
Currency |
|
Total facility * |
|
Current period payment |
|
Principal payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
The Bank of Tokyo –Mitsubishi UFJ, Ltd. (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March13 , 201 5 a& g |
|
Metra |
|
Rp |
|
400 |
|
28 |
|
Quartely (2016-2020) |
|
Quartely |
|
3 months JIBOR+2. 15 % |
|
None |
|
March13 , 201 5 a& g |
|
Infomedia |
|
Rp |
|
250 |
|
12 |
|
Quartely (2016-2020) |
|
Quartely |
|
3 months JIBOR+2. 15 % |
|
None |
|
April 8, 2015 a &b |
|
Telkomsel |
|
Rp |
|
1,000 |
|
667 |
|
April 14, 2018 |
|
Quartely |
|
3 months JIBOR+1 . 95% |
|
None |
|
March 13, 2015 a&g |
|
Dayamitra |
|
Rp |
|
100 |
|
7 |
|
Quarterly (2016-2020) |
|
Quarterly |
|
3 month JIBOR+2.15% |
|
None |
|
November 2, 2015 |
|
Dayamitra |
|
Rp |
|
400 |
|
27 |
|
Quarterly (2017-2020) |
|
Quarterly |
|
3 month JIBOR+2.60% |
|
Trade receivables (Note 5 ) |
|
October 3, 2016 |
|
Dayamitra |
|
Rp |
|
500 |
|
- |
|
Semi - annually (2019-2024) |
|
Quarterly |
|
3 month JIBOR+2.25% |
|
Property and equipment
|
|
BRI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 20, 2011 a |
|
Dayamitra |
|
Rp |
|
1,000 |
|
1 20 |
|
Semi-annually (2013-2017) |
|
Quarterly |
|
3 months JIBOR+1.40% and 3 monthsJIBOR+3.50% |
|
Property and
e
quipment
|
|
October 30, 2013 |
|
GSD |
|
Rp |
|
70 |
|
5 |
|
Monthly (2014-2021) |
|
Monthly |
|
1 0.00 % |
|
Trade receivables (Note 5), property and equipment (Note 9) and lease agreement |
|
October 30, 2013 |
|
GSD |
|
Rp |
|
34 |
|
3 |
|
Monthly (2014-2021) |
|
Monthly |
|
1 0.00 % |
|
Trade receivables (Note 5), property and equipment (Note 9) and lease agreement |
|
November 20, 2013 |
|
The Company |
|
Rp |
|
1,500 |
|
188 |
|
Semi-annually (2015-201 8 ) |
|
Quarterly |
|
3 months JIBOR+2.65% |
|
None |
|
December 1 8, 201 5 |
|
Dayamitra |
|
Rp |
|
800 |
|
- |
|
Semi -annualy (201 7 -2020) |
|
Quarterly |
|
3 months JIBOR+2.70% |
|
Property and equipment
|
|
March 24 , 201 7 i |
|
The Company |
|
Rp |
|
5 00 |
|
- |
|
Semi -annualy (2019-2024) |
|
Quarterly |
|
3 months JIBOR+1.85% |
|
None |
|
60
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 6 . LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loan s (continued)
|
|
Borrower |
|
Currency |
|
Totalfacility * |
|
Current period payment |
|
Principal payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
Bank CIMB Niaga (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2011 |
|
GSD |
|
Rp |
|
13 |
|
1 |
|
Monthly (2011-2019) |
|
Monthly |
|
9.75% |
|
Property and equipment
|
|
September 9, 2011 |
|
GSD |
|
Rp |
|
41 |
|
1 |
|
Monthly
|
|
Monthly |
|
9.75% |
|
Property and equipment
|
|
September 20, 2012 a |
|
TLT |
|
Rp |
|
1,1 50 |
|
- |
|
Monthly (2015-2030) |
|
Quarterly |
|
3 Months
|
|
Property and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 20, 2012 a |
|
TLT |
|
Rp |
|
118 |
|
- |
|
Monthly (2015-2030) |
|
Monthly |
|
9 .00% |
|
Property and equipment (Note9) |
|
April 5, 2017 |
|
GSD |
|
Rp |
|
200 |
|
- |
|
Monthly (2018-2024) |
|
Quarterly |
|
3 Months
|
|
None |
|
PT Bank Sumitomo Mitsui Indonesia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 13, 2015 a& g |
|
Metra |
|
R p |
|
4 00 |
|
28 |
|
Quarterly (20 16 -20 20 ) |
|
Quarterly |
|
3 months JIBOR+ 2 . 1 5% |
|
None |
|
March 13, 2015 a& g |
|
Infomedia |
|
Rp |
|
250 |
|
12 |
|
Quarterly (20 16 -20 20 ) |
|
Quarterly |
|
3 months JIBOR+ 2 . 15 % |
|
None |
|
March 13, 2015 a&g |
|
Dayamitra |
|
Rp |
|
100 |
|
7 |
|
Quartely (2016-2020) |
|
Quarterly |
|
3 months JIBOR+2.15% |
|
None |
|
UOB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 22, 2016 |
|
Dayamitra |
|
Rp |
|
500 |
|
- |
|
Semi-annually (2018-2024) |
|
Quarterly |
|
3 months JIBOR+2.2 0 % |
|
Property and equipment
|
|
UOB Singapore |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 9, 2016 |
|
TII |
|
US$ |
|
0 . 06 |
|
- |
|
Semi-annually (2019-2022) |
|
Quarterly |
|
3 months LIBOR+1.5% |
|
None |
|
Bank ANZ Indonesia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 13, 2015 a&g |
|
GSD |
|
Rp |
|
249.5 |
|
- |
|
June 13, 2020 |
|
Quarterly |
|
3 months J IBOR+ 2.00 % |
|
Property and equipment
|
|
March 13, 2015 a&g |
|
PIN |
|
Rp |
|
200 |
|
- |
|
May 31, 2022 |
|
Quarterly |
|
3 months J IBOR+ 2.00 % |
|
None |
|
JBIC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 28, 2013 a& e |
|
The Company |
|
US$ |
|
0.03 |
|
0.00 3 |
|
Semi-annually ( 2014-2019) |
|
Semi-annually |
|
2.18% and
|
|
None |
|
BCA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 5, 2017 b |
|
Telkomsel |
|
Rp |
|
1,000 |
|
- |
|
Monthly
|
|
Quartely |
|
3 months JIBOR+1.00% |
|
None |
|
PT Bank ICBC Indonesia (ICBC) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 5, 2017 |
|
GSD |
|
Rp |
|
273 |
|
- |
|
Quartely (2019-2024) |
|
Quarterly |
|
3 months JIBOR+2.36% |
|
None |
|
61
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 6 . LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loan s (continued)
|
|
Borrower |
|
Currency |
|
Total facility * |
|
Current period payment |
|
Principal payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
Bank Mandiri |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 20, 2013 |
|
The Company |
|
Rp |
|
1,500 |
|
- |
|
Semi-annually (2015-201 8 ) |
|
Quarterly |
|
3 months JIBOR+2.65% |
|
None |
|
August 11, 2014 |
|
G raha Yasa Selaras |
|
Rp |
|
7 3 |
|
5 |
|
Monthly (20 16 -20 21 ) |
|
Monthly |
|
3 months JIBOR+3.25% |
|
Property and equipment
|
|
August 11, 2014 |
|
Graha Yasa Selaras |
|
Rp |
|
7 3 |
|
25 |
|
Monthly (20 16 -20 21 ) |
|
Monthly |
|
3 months JIBOR+3.25% |
|
Property and equipment
|
|
April 8 , 201 5 a &b |
|
Telkomsel |
|
Rp |
|
1,000 |
|
667 |
|
April 14, 2018 |
|
Quarterly |
|
3 months JIBOR+1.95% |
|
None |
|
September 27, 2016 |
|
Patrakom |
|
Rp |
|
70 |
|
- |
|
Quarter ly (2017-2019) |
|
Monthly |
|
9.50% |
|
Trade receivables(Note 5) and property and
equipment
|
|
March 24, 2017 i |
|
Dayamitra |
|
Rp |
|
500 |
|
- |
|
Semi-annually (2019-2024) |
|
Quarterly |
|
3 months JIBOR+ 1 . 85% |
|
All Assets |
|
March 24 , 201 7 i |
|
TII |
|
Rp |
|
195 |
|
- |
|
Semi -annualy (2019-2024) |
|
Quarterly |
|
3 months JIBOR+1.85% |
|
None |
|
Bank CIMB Niaga |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2011 |
|
GSD |
|
Rp |
|
24 |
|
1 |
|
Monthly (2011-2020) |
|
Monthly |
|
9.75% |
|
Property and equipment
|
|
The credit facilities were obtained by the Group for working capital purposes.
* In original currency
a 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, 2016, the Group has complied with all covenants or restrictions, except for certain loans. As of December 31, 2016, the Group obtained waiver from lenders to not demand the loan payment as consequence of the breach of covenants.
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 covenants and negative covenants as well as financial and other covenants, which include, among other things, certain restrictions on the amount of dividends and other profit distributions which could adversely affect Telkomsel’s capacity to comply with its obligation under the facility. The terms of the relevant agreements also contain default and cross default clauses. As of June 30, 2017 Telkomsel has complied with the above covenants.
c Based on the latest amendment on January 12, 2015.
d Based on the latest amendment on September 22, 2014.
62
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1 6 . LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loan s (continued)
The credit facilities were obtained by the Group for working capital purposes (continued).
e 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 facilities A and B amounting to US$18.8 million and US$12.5 million, respectively.
f Based on the latest amendment on July 13 , 201 5.
g O n March13 , 201 5, the Company, GSD, Metra and Infomedia entered into several credit facilities agreements with PT Bank Sumitomo Mitsui Indonesia, The Bank of Tokyo - Mitsubishi UFJ, Ltd., PT Bank ANZ Indonesia and syndication of banks (BCA and BNI) amounting to Rp750 billion, Rp750 billion, Rp500 billion, and Rp3,000 billion, respectively.As of June 30, 2017 the unused facilities for PT Bank Sumitomo Mitsui Indonesia, The Bank of Tokyo – Mitsubishi UFJ, Ltd. and PT Bank ANZ Indonesia amounted to Rp 82,5 billion, Rp 82,5 billion dan Rp 50,5 billion , respectively.
h Based on the latest amendment on November 14, 2016.
i On March, 24, 2017, the Company, Dayamitra, Sigma, GSD and Telin entered several credit agreements with BRI, BNI and Mandiri amounting to Rp 1000 billion, Rp 1500 billion and Rp1500 billion, respectively. As of June 30,2017, the unused capacities for BRI, BNI and Mandiri amounted to Rp500 billion, Rp 850 billion and Rp805 billion, respectively.
d. Other borrowing
|
|
Borrower |
|
Currency |
|
Total facility (in billion s ) |
|
Current period payment
|
|
Principal payment schedule |
|
Interest payment period |
|
Interest rate per annum |
|
Security |
|
PT Saran a Multi Infrastruktur |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 12, 2016 |
|
DMT |
|
Rp |
|
700 |
|
- |
|
Semi-annual l y (2017-2025) |
|
Quarterly |
|
3 months J IBOR+ 2. 20% |
|
Property and equipment
|
|
March 29, 2017 |
|
DMT |
|
Rp |
|
600 |
|
- |
|
Semi-annual l y (2018-2024) |
|
Quarterly |
|
3 months J IBOR+ 2. 20% |
|
Property and equipment
|
|
Under the agreement, DMT is required to comply with all covenants or restrictions, including maintaining financial ratios as follows :
1. Debt to equity ratio should not exceed 5:1.
2. Net debt to EBITDA ratio should not exceed 4:1.
3. Minimal Debt service coverageat least 100%.
As of June 30 , 2017 , DMT has complied with the above-mentioned ratios.
17 . NON-CONTROLLING INTERESTS
The details of non-controlling interests are as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Non-controlling interests in net assets of subsidiaries: |
|
|
|
|
Telkomsel |
16,844 |
|
20,778 |
|
GSD |
141 |
|
141 |
|
Metra |
141 |
|
208 |
|
TII |
31 |
|
33 |
|
Total |
17,157 |
|
21,160 |
|
|
201 7 |
|
201 6 |
|
Non-controlling interests in net comprehensive income (loss) of subsidiaries: |
|
|
|
|
Telkomsel |
5,441 |
|
4,743 |
|
Metra |
(47 |
) |
(8 |
) |
TII |
(3 |
) |
3 |
|
GSD |
(0 |
) |
(1 |
) |
Total |
5,391 |
|
4,737 |
|
63
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
17 .NON-CONTROLLING INTERESTS (continued)
Material partly-owned subsidiary
As of June 30, 2017 and December 3 1, 2016 , the non-controlling interest holds 35% ownership interest in Telkomsel which is considered material to the company (Note 1d).
The summarized financial information of Telkomsel below is provided based on amounts before elimination of inter-company balances and transactions.
Summarized statements of financial position
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Current assets |
21,042 |
|
28,818 |
|
Non-current assets |
59,850 |
|
60,963 |
|
Current liabilities |
(23,385 |
) |
(21,891 |
) |
Non-current liabilities |
(9,376 |
) |
(8,520 |
) |
Total equity |
48,131 |
|
59,370 |
|
Attributable to: |
|
|
|
|
Equity holders of parent company |
31,287 |
|
38,592 |
|
Non-controlling interest |
16,844 |
|
20,778 |
|
Summarized statement s of profit or loss and other comprehensive income
|
201 7 |
|
201 6 |
|
Revenue s |
45,988 |
|
41,091 |
|
Operating expenses |
(25,525 |
) |
(23,249 |
) |
Other income |
219 |
|
103 |
|
Profit before income tax |
20,682 |
|
17,945 |
|
Income tax expense - net |
(5,135 |
) |
(4,393 |
) |
Profit for the year from continuing operations |
15,547 |
|
13,552 |
|
Other comprehensive income (expenses) - net |
- |
|
- |
|
Net comprehensive income for the year |
15,547 |
|
13,552 |
|
Attributable to non-controlling interest |
5,441 |
|
7,036 |
|
Dividend paid to non-controlling interest |
9,374 |
|
|
|
Summarized statements of cash flows
|
201 7 |
|
201 6 |
|
Operating activities |
22 , 379 |
|
22,844 |
|
Investing activities |
(6,392 |
) |
(5,943 |
) |
Financing activities |
(25,195 |
) |
(21,149 |
) |
Net increase in cash and cash equivalents |
(9,208 |
) |
(4,248 |
) |
64
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
18 .CAPITAL STOCK
|
|
June 30, 2 017 |
|
||||
Description |
|
Number of shares |
|
Percentage of ownership |
|
Total paid-in capital |
|
Series A Dwiwarna share Government |
|
1 |
|
0 |
|
0 |
|
Series B shares Government |
|
51,602,353,559 |
|
52.09 |
|
2,580 |
|
The Bank of New York Mellon Corporation* |
|
6,575,489,480 |
|
6.64 |
|
329 |
|
Commissioners (Note 1b): |
|
|
|
|
|
|
|
Hendri Saparini |
|
414,157 |
|
0 |
|
0 |
|
Dolfie Othniel Fredric Palit |
|
0 |
|
0 |
|
0 |
|
Hadiyanto |
|
875,297 |
|
0 |
|
0 |
|
Directors (Note 1b): |
|
|
|
|
|
|
|
Alex J anangkih Sinaga |
|
920,349 |
|
0 |
|
0 |
|
Hary M Zen |
|
0 |
|
0 |
|
0 |
|
Mas’ud Khamid |
|
0 |
|
0 |
|
0 |
|
Herdy Rosadi Harman |
|
828,012 |
|
0 |
|
0 |
|
Abdus Somad Arief |
|
828,314 |
|
0 |
|
0 |
|
Dian Rachmawan |
|
888,854 |
|
0 |
|
0 |
|
Public (individually less than 5%) |
|
40,879,618,557 |
|
41.27 |
|
2,044 |
|
Total |
|
99,062,216,600 |
|
100.00 |
|
4,953 |
|
Treasury stock (Note 2 0 ) |
|
1,737,779,800 |
|
0 |
|
87 |
|
Total |
|
100,799,996,400 |
|
100.00 |
|
5,040 |
|
|
|
December 31, 2 016 |
|
||||
Description |
|
Number of shares |
|
Percentage of ownership |
|
Total paid-in capital |
|
Series A Dwiwarna share Government |
|
1 |
|
0 |
|
0 |
|
Series B shares Government |
|
51,602,353,559 |
|
52.09 |
|
2,580 |
|
The Bank of New York Mellon Corporation* |
|
7,000,589,980 |
|
7.07 |
|
350 |
|
Commissioners (Note 1b): |
|
|
|
|
|
|
|
Hendri Saparini |
|
414,157 |
|
0 |
|
0 |
|
Dolfie Othniel Fredric Palit |
|
372,741 |
|
0 |
|
0 |
|
Hadiyanto |
|
875,297 |
|
0 |
|
0 |
|
Directors (Note 1b): |
|
|
|
|
|
|
|
Alex J anangkih Sinaga |
|
920,349 |
|
0 |
|
0 |
|
Indra Utoyo |
|
1,972,644 |
|
0 |
|
0 |
|
Honesti Basyir |
|
1,945,644 |
|
0 |
|
0 |
|
Herdy Rosadi Harman |
|
828,012 |
|
0 |
|
0 |
|
Abdus Somad Arief |
|
828,314 |
|
0 |
|
0 |
|
Dian Rachmawan |
|
888,854 |
|
0 |
|
0 |
|
Public (individually less than 5%) |
|
40,450,227,048 |
|
40.84 |
|
2,023 |
|
Total |
|
99,062,216,600 |
|
100.00 |
|
4,953 |
|
Treasury stock (Note 2 0 ) |
|
1,737,779,800 |
|
0 |
|
87 |
|
Total |
|
100,799,996,400 |
|
100.00 |
|
5,040 |
|
* The Bank of New York Mellon Corporation serves as the Depositary of the 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.
65
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
19 . ADDITIONAL PAID-IN CAPITAL
|
June 30, 201 7 |
|
December 31, 201 6 |
|
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 21 5 , 000 , 00 0 shares under the treasury stock plan phase I I (Note 20) |
576 |
|
576 |
|
Excess of value over cost of selling 211,290,500 shares under the treasury stock plan phase I (Note 20) |
544 |
|
544 |
|
Difference in value arising from restructuring transactions between entities under common control |
478 |
|
478 |
|
Excess of value over cost of treasury stock transferred to employee stock ownership program (Note 20) |
228 |
|
228 |
|
Excess of value over cost of selling 22 , 363 ,000 shares under the treasury stock plan phase I II (Note 20) |
36 |
|
36 |
|
Excess of value over cost of selling 864,000 ,000 shares under the treasury stock plan phase I V (Note 20) |
1,996 |
|
1,996 |
|
Capitalization into 746,666,640 Series B shares in 1999 |
(373 |
) |
(373 |
) |
Net |
4,931 |
|
4,931 |
|
Difference in value arising from restructuring 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 June 30, 2017 and December 3 1 , 2016 , the accumulated development of the related infrastructure amounting to R p537 billion, respectively.
2 0 . TREASURY STOCK
|
|
|
|
|
|
Maximum Purchase |
|
||
Phase |
|
Basis |
|
Period |
|
Number of Shares |
|
Amount |
|
I |
|
EGM |
|
December 21, 2005 - June20, 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:
|
|
June 30, 2017 |
|
December 31, 201 6 |
|
||||||||
|
|
Number of share s |
|
% |
|
Rp |
|
Number of shares |
|
% |
|
Rp |
|
Beginning balance |
|
1,737,779,800 |
|
1.72 |
|
2,541 |
|
2,6 01 , 779 ,800 |
|
2. 58 |
|
3,8 04 |
|
S ale of treasury stock |
|
- |
|
- |
|
- |
|
( 864 , 000 ,000 |
) |
(0. 86 |
) |
(1,263 |
) |
Ending balance |
|
1,737,779,800 |
|
1.72 |
|
2,541 |
|
1 , 737 ,779,800 |
|
1 . 72 |
|
2 , 541 |
|
66
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2 0 . 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 phases 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 s tockholders approved to execute the repurchase plan for treasury stock p hase IV.
In 2012, the Company bought back 237,270,500 shares (equivalent to 1,186,352,500 shares after stock split) from the public ( part of stock repurchase program p hase IV) for Rp1,744 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 (equivalent 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 19 ).
On June 13 , 2014 , the Company resold 215,000,000 shares (equivalent to 1,075,000,000 shares after stock split)of treasury stock phase II with fair value amounting to Rp 2,541 billion (net of related costs to sell the shares). The excess amounting to Rp 576 billion in value of the treasury stock sold over their acquisition cost was recorded as additional paid-in capital (Note 19 ).
On December 21, 2015, the Company resold 4,472,600 shares ( equivalent to 22,363,000 shares after stock split) of treasury stock phase III with fair value amounting to Rp68 billion (net of related costs to sell the shares). The excess amounting to Rp36 billion in value of the treasury stock sold over their acquisition cost was recorded as additional paid-in capital (Note 19 ).
On June 29, 2016, the Company resold 172,800,000 shares ( equivalent to 864,000,000 shares after stock split) of treasury stock phase IV with fair value of Rp3,25 9 billion (net of related costs to sell the shares). The excess amounting to Rp1,996 billion in value of the treasury stock sold over their acquisition cost was recorded as additional paid-in capital (Note 19 ).
2 1 . OTHER EQUITY
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Effect of change in equity of associated companies |
386 |
|
386 |
|
Unrealized holding gain on available-for-sale securities |
56 |
|
38 |
|
Transalation adjustment |
492 |
|
503 |
|
Difference due to acquisition of non controlling interest s in subsidiaries |
(637 |
) |
(637 |
) |
Other equity components |
49 |
|
49 |
|
Total |
346 |
|
339 |
|
67
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2 2 . REVENUES
|
201 7 |
|
201 6 |
|
Telephone revenues |
|
|
|
|
Cellular |
|
|
|
|
Usage charges |
19,200 |
|
17,906 |
|
Monthly subscription charges |
30 |
|
201 |
|
|
19,230 |
|
18,107 |
|
Fixed lines |
|
|
|
|
Usage charges |
1,679 |
|
2,040 |
|
Monthly subscription charges |
1,631 |
|
1,654 |
|
Call center |
149 |
|
142 |
|
Others |
198 |
|
44 |
|
|
3,657 |
|
3,880 |
|
Total t elephone r evenues |
22,887 |
|
21,987 |
|
Interconnection r evenues |
2,665 |
|
1.879 |
|
Data, i nternet, and i nformation t echnology s ervice r evenues |
|
|
|
|
Celullar internet and data |
17,383 |
|
14,617 |
|
Internet, data communication and information technology services |
8,895 |
|
7,411 |
|
Short Messaging Services (“SMS”) |
6,790 |
|
6,997 |
|
Pay TV |
647 |
|
514 |
|
Others |
194 |
|
96 |
|
Total
d
ata,
i
nternet, and
i
nformation
t
echnology
|
33,909 |
|
29.635 |
|
Network r evenues |
606 |
|
548 |
|
Other r evenues |
|
|
|
|
Sales of handset |
743 |
|
740 |
|
Telecommunication tower leases |
395 |
|
358 |
|
Call center service |
329 |
|
363 |
|
CPE and terminal |
259 |
|
326 |
|
Others |
2 , 228 |
|
618 |
|
Total o ther r evenues |
3,954 |
|
2,405 |
|
Total revenues |
64,021 |
|
56.454 |
|
The detail of net revenues received by t he Group from agency relationships for the six months period ended June 30, 2017 and 2016 are as follow s :
|
201 7 |
|
201 6 |
|
Gross revenues |
17,911 |
|
14,617 |
|
Compensation to value added service providers |
(528 |
) |
- |
|
Net revenues |
17,383 |
|
14,617 |
|
|
|
|
|
|
Refer to Note 3 1 for details of related party transactions.
68
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2 3 . PERSONNEL EXPENSES
The breakdown of personnel expenses is as follows:
|
201 7 |
|
201 6 |
|
Salaries and related benefits |
3,891 |
|
3,628 |
|
Vacation pay, incentives and other benefits |
1,641 |
|
1,542 |
|
Pension benefit cost (Note 29) |
68 7 |
|
619 |
|
Early retirement program |
- |
|
200 |
|
Net periodic post-employment health care benefit cost (Note 29) |
151 |
|
91 |
|
Other employee benefit cost (Note 29) |
31 |
|
23 |
|
Long Service Awards (“LSA”) expense (Note 30) |
60 |
|
53 |
|
Other post-employment benefit cost (Note 29) |
21 |
|
24 |
|
Others |
23 3 |
|
225 |
|
Total |
6,715 |
|
6,405 |
|
Refer to Note 31 for details of related party transactions.
24. OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES
The breakdown of operation, maint e nance and telecommunication service expenses is as follows:
|
201 7 |
|
201 6 |
|
Operation and maintenance |
10,257 |
|
8,771 |
|
Radio frequency usage charges (Notes 34c.i and 34c.ii) |
2,029 |
|
1,939 |
|
Cost of IT services |
1,289 |
|
780 |
|
Leased lines and CPE |
1,270 |
|
1,519 |
|
Concession fees and USO charges |
1,103 |
|
1,100 |
|
Cost of handset sold (Note 6 ) |
732 |
|
735 |
|
Cost of SIM cards and vouchers (Note 6 ) |
536 |
|
280 |
|
Electricity, gas and water |
403 |
|
463 |
|
Project Management |
210 |
|
90 |
|
Tower leases |
209 |
|
202 |
|
Vehicles rental and supporting facilities |
140 |
|
136 |
|
Insurance |
82 |
|
120 |
|
Others |
148 |
|
39 |
|
Total |
18,408 |
|
16,174 |
|
Refer to Note 31 for details of related party transactions.
2 5 . GENERAL AND ADMINISTRATIVE EXPENSES
The breakdown of general and administrative expenses is as follows:
|
201 7 |
|
201 6 |
|
General expenses |
795 |
|
740 |
|
Provision for impairment of receivables (Note 5d ) |
325 |
|
149 |
|
Training, education and recruitment |
241 |
|
190 |
|
Travelling |
224 |
|
185 |
|
Professional fees |
199 |
|
290 |
|
Meeting |
115 |
|
93 |
|
Social contribution |
102 |
|
60 |
|
Collection expense s |
67 |
|
91 |
|
Others |
135 |
|
140 |
|
Total |
2,203 |
|
1,938 |
|
Refer to Note 3 1 for details of related party transactions.
69
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2 6. TAXATION
a. Claims for tax refund
|
June 30, 201 7 |
|
December 31, 201 6 |
|
The Company |
|
|
|
|
Value Added Tax (“VAT”) (Note 26e.i) |
1,428 |
|
335 |
|
Corporate income tax |
578 |
|
473 |
|
Subsidiaries |
|
|
|
|
Corporate income tax |
329 |
|
66 |
|
VAT |
234 |
|
1,146 |
|
Total claims for tax refund |
2,569 |
|
2 , 020 |
|
Current portion |
(267 |
) |
( 592 |
) |
Non-currentportion |
2,302 |
|
1, 428 |
|
b. Prepaid taxes
|
June 30, 201 7 |
|
December 31, 201 6 |
|
The Company |
|
|
|
|
Income tax |
|
|
|
|
Article 19 - Revaluation of fixed assets (Note 26f) |
538 |
|
538 |
|
VAT |
91 |
|
1,075 |
|
Subsidiaries |
|
|
|
|
Corporate income tax |
103 |
|
62 |
|
VAT |
2,743 |
|
1, 639 |
|
Income tax |
|
|
|
|
Article 22 - Withholding tax on goods delivery and imports |
3 |
|
- |
|
Article 23 - Withholding tax on services |
153 |
|
5 2 |
|
Total prepaid taxes |
3,631 |
|
3 , 366 |
|
Current portion |
(3, 248 |
) |
(2,138 |
) |
Non-currentportion |
383 |
|
1 , 228 |
|
c. Taxes payable
|
June 30, 201 7 |
|
December 31, 201 6 |
|
The Company |
|
|
|
|
Income taxes |
|
|
|
|
Article 4 (2) - Final tax |
23 |
|
29 |
|
Article 21 - Individual income tax |
225 |
|
141 |
|
Article 22 - Withholding tax on goods delivery and imports |
2 |
|
2 |
|
Article 23 - Withholding tax on services |
21 |
|
42 |
|
Article 25 - Installment of corporate income tax |
1 |
|
- |
|
Article 26 - Withholding tax on non-resident income |
7 |
|
136 |
|
VAT |
|
|
|
|
VAT as Tax Collector |
234 |
|
297 |
|
|
513 |
|
647 |
|
70
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2 6. TAXATION (continued)
c. Taxes payable (continued)
|
June 30, 201 7 |
|
December 31, 201 6 |
|
|
Subsidiaries |
|
|
|
|
|
Income taxes |
|
|
|
|
|
Article 4 (2) - Final tax |
61 |
|
63 |
|
|
Article 21 - Individual income tax |
103 |
|
12 1 |
|
|
Article 22 - Withholding tax on goods delivery and imports |
2 |
|
2 |
|
|
Article 23 - Withholding tax on services |
95 |
|
9 3 |
|
|
Article 25 - Installment of corporate income tax |
804 |
|
136 |
|
|
Article 26 - Withholding tax on non-resident income |
10 |
|
16 |
|
|
Article 29 - Corporate income tax |
1,066 |
|
1 , 100 |
|
|
VAT |
663 |
|
776 |
|
|
|
2,804 |
|
2 , 307 |
|
|
Total |
3,317 |
|
2 , 954 |
|
|
d. The components of income tax expense (benefit) are as follows:
|
201 7 |
|
201 6 |
|
Current |
|
|
|
|
The Company |
116 |
|
215 |
|
Subsidiaries |
5,415 |
|
4,657 |
|
|
5,531 |
|
4,872 |
|
Deferred |
|
|
|
|
The Company |
235 |
|
8 |
|
Subsidiaries |
(6 |
) |
(45 |
) |
|
229 |
|
(37 |
|
Net income tax expense |
5,760 |
|
4,835 |
|
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 s tatements of profit or loss and other comprehensive income is as follows:
|
201 7 |
|
201 6 |
|
Profit before income tax |
23,255 |
|
19,498 |
|
Less: income subject to final tax - net |
342 |
|
(1,027 |
|
|
23 ,597 |
|
18,471 |
|
Income tax expense calculated at the Company’s applicable statutory tax rate of 20% |
4,7 19 |
|
3,694 |
|
Difference in applicable statutory tax rate for subsidiaries |
1, 101 |
) |
901 |
|
Non-deductible expenses |
( 91 |
|
159 |
) |
Final income tax expense |
33 |
|
139 |
|
Deffered tax asset that can not be utilized -net |
12 |
) |
- |
|
Others |
( 14 |
|
(58 |
) |
Net income tax expense - net |
5,760 |
|
4,835 |
|
71
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2 6. 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 six months period ended June 30 , 2017 and 2016 is as follows:
|
201 7 |
|
201 6 |
|
Profit before income tax |
23,25 5 |
|
19,498 |
|
Add back consolidation eliminations |
11,00 1 |
|
9,374 |
|
Consolidated profit before income tax and eliminations |
34,256 |
|
28,872 |
|
Less: profit before income tax of the subsidiaries |
(22,302 |
) |
(18,554 |
) |
Profit before income tax attributable to the Company |
11,954 |
|
10,318 |
|
Less : income subject to final tax |
(227 |
) |
(373 |
) |
|
11,727 |
|
9,945 |
|
Temporary differences: |
|
|
|
|
Provision for personnel expenses |
(602 |
) |
(185 |
) |
Net periodic pension and other post-retirement benefits costs |
349 |
|
360 |
|
Deferred installation fee |
54 |
|
(12 |
) |
Depreciation and gain on sale of property and equipment |
(1,177 |
) |
(595 |
) |
Provision for onerous contracts |
(23 |
) |
22 |
|
Finance leases |
4 |
|
(23 |
) |
Provision for impairment and trade receivables written-off |
211 |
|
41 |
|
Early retirement allowance expenses |
- |
|
200 |
|
Other provisions |
(33 |
) |
(11 |
) |
Net temporary differences |
(1,217 |
) |
(203 |
) |
Permanent differences: |
|
|
|
|
Employee benefits |
117 |
|
112 |
|
Net periodic post-retirement health care benefit costs |
151 |
|
90 |
|
Donations |
92 |
|
89 |
|
Equity in net income of associates and subsidiaries |
(10,663 |
) |
(9,388 |
) |
Others |
208 |
|
90 |
|
Net permanent differences |
(10,095 |
) |
(9,007 |
|
Taxable income of the Company |
415 |
|
735 |
|
Current corporate income tax expense |
83 |
|
148 |
|
Final income tax expense |
33 |
|
67 |
|
Total current income tax expense of the Company |
116 |
|
215 |
|
Current income tax expense of the subsidiaries |
5,415 |
|
4,657 |
|
Total current income tax expense |
5,531 |
|
4,872 |
|
Tax Law No. 36/2008 which is futher regulated in government regulation No.81/2007 as amended by government regulation No.77/2013 and lastly by government regulation No.56/2015 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 the year ended December 31, 2016 and 2015, the Company has reduced the applicable tax rate by 5% .
The Company applied the tax rate of 20% for the six months period e nded June 30, 2017 and 2016. The subsidiaries applied the tax rate of 25% for the six months period ended June 30, 2017 and 2016.
72
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2 6. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows (continued):
The company will submit the above corporate income tax computation in its income tax return (“Surat Pemberitahuan Tahunan” or Annual Tax Return) for fiscal year 2017 that will be reported to the tax office based on prevailing regulations. The amount of corporate income tax for the year ended December 31, 2016 agreed with what was reported in the annual tax return.
e. Tax assessment
(i) The Company
In November 2013, the C ompany received tax underpayment assessment l etters ( “ 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 Januar y to 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 s Nos. 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 s tatement of profit or loss and other comprehensive income and the portion of VAT Interconnection amounting to Rp120 billion (including penalty of Rp39 billion) is recognized as claim for tax refund. The Company has filed an appeal to the Tax Court on the rejection of its objection to the assessment of VAT Interconnection No.Tel. 59/KU000/COP - 10000000/2015 to No.Tel. 68/KU000/COP - 10000000/2015 dated March 12, 2015. As of the date of approval and authorization for the issuance of these consolidated financial statements, the appeal is still in process.
In November 2014, the Company received SKPKBs as the result of the tax audit for fiscal year 2011 from the Tax Authorities . Based on the letters , the Company received VAT underpayment assessment for the tax period January to December 2011 amount ing to Rp182.5 billion (including penalty of Rp60 billion) and corporate i ncome tax underpayment assessment amount ing to Rp2.8 billion (including penalty of Rp929 million). The Company has paid the underpayment. The accepted portion on the VAT underpayment amounting toRp4.7 billion (including penalty of Rp2 billion) was charged to the 2014 consolidated s tatement of profit or loss and other comprehensive income and the portion of VAT Interconnection amount ing to Rp178 billion (including penalty of Rp58 billion) is recognized as claim for tax refund. The Company filed an objection on VAT I nterconnection assessment in 2011 on January 7, 2015 to the Tax Authorities. Regarding the case, The Tax A uthorities rejected the Company’s objection through its decree s Nos. 1907 to 1914 dated October 20, 2015 for the tax period January to August 2011, Nos. 2026 to 2028 dated November 2, 2015 for the tax period October to December 2011 and No. 2642/WPJ.19/2015 dated December 29, 2015 for the tax period September 2011 . The Company has filed an appeal to the rejection of the objection on January 20, 2016. On April 21, 2017 , the Company received an official copy of Tax Court’s Verdict on VAT International incoming call interconnection’s appeal No.81994/PP/M.XIA/16/2017 to No.82005/PP/M.XIA/16/2017 dated March 20, 2017 for tax period January to December 2011. The judge stated that interconnection international incoming call is the taxable services from outside customs territory, and included in export taxable services that subject to 0% tariff rate as stipulated in section 7 law No.42/2009. For that reasons, the judge accepted the Company’s request for tax period January, September, October, November, December 2011, meanwhile for tax period February to August 2011, the Company’s request was rejected due to non-fulfillment of formal stipulation in requesting on appeal. Therefore, the Company filed a request for judicial review to SC No.Tel.125/KU 000/COP-10000000/2017 to Tel.131/KU 000/COP-10000000/2017 dated June 21, 2017. As of the date of approval and authorization for the issuance of these consolidated financial statements, The Company is not yet received judicial review from SC.
73
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26 . TAXATION (continued)
e. Tax assessment (continued)
(i) The Company (continued)
The Company received a letter from the Tax Authorities No.Pemb - 00427/WPJ.19/KP.0405/RIK.SIS/2015 dated June 29, 2015 regarding Field Tax Audit Notification for t he t ax period January to December 2014. On April 20, 2016 , the Company received tax overpayment letter No. 00022/406/14/093/16 for the overpayment of i ncome t ax for fiscal year 2014 amounting to Rp51.5 billion.
On May 3, 2016 the Tax Authorities issued Field Tax Audit Notification Letter for tax period January to December 2012. The Company received SKPKBs as a result of the tax audit. Based on the letters, the Company was assessed underpayment of corporate income tax amounting to Rp991.6 billion (including penalty of Rp321.6 billion), VAT underpayment assessment amounting to Rp467 billion (including penalty of Rp153.5 billion), VAT underpayment assessment on taxable services from outside customs territory amounting to Rp1.2 billion (including penalty of Rp392 million), and VAT underpayment assessment on tax collected amounting to Rp57 billion (including penalty of Rp18.5 billion). The Company also received tax collection letter (“STP”) for VAT amounting to Rp37.5 billion, withholding tax article 21 underpayment assessment amounting to Rp16.2 billion (including penalty of Rp5.3 billion), final withholding tax article 21 underpayment assessment amounting to Rp1.2 billion (including penalty of Rp407 million), withholding tax article 23 underpayment assessment amounting to Rp 63 .5 billion (including penalty of Rp2 0 . 6 billion), with h olding tax article 4(2) underpayment assessment amounting to Rp25 billion (including penalty of Rp8.1 billion) and withholding tax article 26 underpayment assessment amounting to Rp197.6 billion (including penalty of Rp64 billion).
The Company has agreed regarding recalculation of input tax credit on incoming interconnection services amounting to Rp35 billion, corporate income tax amounting to Rp613 million and withholding tax article 26 amounting to Rp311.5 million that have been charged in the consolidated statement of profit or loss and other comprehensive income. The Company filed an objection against the remaining assessments on November 16, 2016. As of the date of approval and authorization for the issuance of these consolidated financial statements, the objection is still in process.
The Company received a letter from the Tax Authorities dated August 23, 2016 regarding Field Tax Audit Notification for the tax period January to December 2015. On April 25, 2017, the Tax Authorities issued SKPKBs Nos.00017/406/15/093/17, 00001 to 00012/277/15/093/17, 00001/177/15/093/17, 00018 to 00023/287/15/093/172, 00117/187/15/093/17, 00032 to 00037/587/15/093/172, 00122 to 00133/207/15/093/17 and 00068/107/15/093/1. The Company accepted the assessment of corporate income tax amounting to Rp14 billion and VAT amounting to Rp25 billion and recorded as expenses in 2017. The Company also accepted to move imposition over the realization burden compensation the migration of Flexi to income tax return for fiscal year 2016 amounting to Rp42 billion. For the unaccepted portion of corporate income tax amounting to Rp368 billion and VAT amounting to Rp55 billion, the Company planned to propose objection. As the date of approval and authorization for issuance of these consolidated financial statements, the objection’s request is still in process.
74
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26 . TAXATION (continued)
e. Tax assessment (continued)
(ii) Telkomsel
In December 2013, the Tax Court accepted Telkomsel’s appeal on the 2006 VAT and withholding taxes totaling Rp116 billion. In February 2014, Telkomsel received the refund. On July 3, 2015, in response to Telkomsel’s letter claiming for interest income related to favorable 2006 VAT and withholding tax verdicts, the Tax Authorities informed Telkomsel that the claim cannot be granted since the Tax Authorities filed a request for judicial review tothe SC. On August 19, 2016, Telkomsel received a notification from the Tax Court that the Tax Authorities filed a request for judicial review to SC for the VAT case amounting to Rp108 billion. Telkomsel filed a contra-appeal to the SC on September 14, 2016. In April 2017, Tax Authority has guaranted Telkomsel’s claim on interest income will be compensate against corporate income tax installment for the period of April 2017.
In April 21, 2010, the Tax Authorities filed a judicial review request to the 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 Rp8.4 billion). In May 2010, Telkomsel filed a contra-appeal to the SC.
In July 2016, the verdict on the case has been announced in the SC website in favor of the Tax Authorities. Although Telkomsel has not received the official written verdict from the SC, the tax penalty of Rp8.4 billion has been charged to profit or loss. The income tax of Rp421 billion will not become an additional tax expense as such corporate income tax is creditable against Telkomsel’s income tax liability .
In May and June 2012, Telkomsel received the refund of the penalty on the 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. In July 2016, conservatively, Telkomsel recognized the tax penalty of Rp15.7 billion. As of the date of pproval and authorization for issuance of this consolidated financial statements,the judicial review is still on process.
On May 24, 2012, Telkomsel filed an objection to the Tax Authorities for the 2010 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 accepted Telkomsel’s appeal .O n May 13, 2015, Telkomsel received the refund for VAT amounting to Rp290.6 billion. On June 24, 2015, t he Tax Authorities filed a judicial review request to the S C. O n May 2, 2016, Telkomsel received a notification from the Tax Court regarding the judicial review. Subsequently, on May 27, 2016 Telkomsel filed a contra-appeal to the SC. On May 9, 2017, Telkomsel received the official verdict from the SC which rejected Telkomsel’s request, therein Telkomsel recognized the underpayment as liability as of June 30, 2017 and has already paid on July 10, 2017.
75
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2 6. TAXATION (continued)
e. Tax assessment (continued)
(ii) Telkomsel (continued)
On November 7, 2014, Telkomsel received assessment letters as a result of a tax audit for the fiscal year 2011 by the Tax Authorities. According to the letters, Telkomsel is liable for the underpayment of 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. In December 2014, Telkomsel accepted the assessment of Rp7.8 billion for the underpayment of corporate income tax, Rp1 billion for the underpayment of VAT and Rp2.2 billion for the underpayment of withholding tax (including penalty of Rp3.5 billion). The accepted portion was charged to the 2014 consolidated statement of profit or loss and other comprehensive income. In December 2014, Telkomsel paid the assessments and filed objection letters to the Tax Authorities for the underpayment of corporate income tax of Rp250 billion (including penalty of Rp81.1 billion) and VAT of Rp1.9 billion (including penalty of Rp670 million). In November and December 2015, Telkomsel received the rejection letters from the Tax Authorities for corporate income tax of Rp 250 billion and VAT of Rp1.4 billion. The remaining amount of Rp250 million was charged to the 2015 statement of profit or loss and other comprehensive income.
In August 2015, Telkomsel received a letter from the Tax Authorities requesting Telkomsel to change the fiscal useful life of asset tower. Claim for tax refund of 2011 Corporate Income Tax related to tower depreciation of Rp125.5 billion was reclassified to deferred tax liabilities, Rp60 billion penalty was charged to the 2015 profit or loss.
On February 15, 2016, Telkomsel filed an appeal to the Tax Authorities for the 2011 underpayment of corporate income tax of Rp250 billion (including penalty of Rp81.1 billion). Subsequently, on March 17, 2016, Telkomsel also filed an appeal to the Tax Court for the underpayment of VAT amounting to Rp1.2 billion (including penalty of Rp392 million). On February 6, 2017, Telkomsel received the Tax Court’s verdict for VAT cases of Rp1.2 billion in favor of Telkomsel.
On March 2, 2017 Telkomsel received the Tax Court’s Verdict for the 2011 underpayment of CIT which partially accepted Telkomsel’s appeal amounting to Rp247.6 billion and such are included claim for tax refund.
On July 28, 2016, Telkomsel received the tax audit instruction letter for compliance of fiscal year 2014. As of the date of approval and authorization for issuance of these consolidated financial statements, the tax audit is still in progress.
f. Tax incentives
In December 2015, the Company took advantage of the Economic Policy Package V in the form of tax incentives for fixed assets revaluation as stipulated in the Ministry of Finance Regulation (“PMK”) No. 191/PMK.010/2015 juncto PMK No. 233/PMK.03/2015 juncto PMK No. 29/PMK.03/2016 . In accordance with the PMK, the Company is allowed to revalue its fixed assets for tax purposes and will obtain lower income tax when the application of the revaluation is submitted to DGT during the period between the effective date of PMK and December 31, 2016. The final income tax is determined at a rate ranging from 3%-6% on the excess of the revalued amount of fixed assets over its original net book value depending on the timing of submission of application to the DGT.
76
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2 6. TAXATION (continued)
f. Tax incentives (continued)
On December 29, 2015, the Company filed an application for fixed assets revaluation using self-assessed revaluation amount and has paid the related final income tax amounting to Rp750 billion. Based on the PMK, the self-assessed revaluation amount should be evaluated by a P ublic I ndependent A ppraiser ( “ KJPP ” ) or valuation specialist, which is registered with the Government before December 31, 2016. Upon verification of the completeness and accuracy of the application, the DGT may issue approval letter within 30 days after the receipt of complete application. The Company has appointed a KJPP to perform fixed assets revaluation of the Company.
The Company submitted the completeness of fixed asset revaluation documents phase 1 to DGT on September 29, 2016. On November 10, 2016, DGT issued approval regarding fixed assets revaluation amounting to Rp7,078 billion with related final income tax amounting to Rp212 billion.
On December 15, 2016, the Company submitted its fixed assets revaluation application for Phase 2 to DGT and expects to be eligible for 6% tax rate. In its application, the Company estimated a revaluation increment of Rp8,960 billion with estimated final income tax of Rp538 billion. As of the date of approval and authorization for issuance of these financial statements, the Company is still waiting for fixed asset revaluation report.
A deductible temporary difference arose on this fixed assets revaluation for tax purposes since the tax base of the fixed assets is higher than their carrying amount. The deductible temporary difference results in a deferred tax asset since the economic benefits will flow to the Company in a form of reduction of taxable income in the future periods when the assets are recovered.
In 2016, the Company recognized deferred tax assets amounting to Rp1,415 billion on the revaluation increment on fixed assets, as approved by the DGT.
g . Deferred tax assets and liabilities
The details of the Group's deferred tax assets and liabilities are as follows:
|
December 3 1, 201 6 |
|
(Charged) credited to profit or loss |
|
(Charged) credited to other comprehensive income |
|
Reclassification |
|
June 30, 201 7 |
|
The Company |
|
|
|
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
|
|
Net periodic pension and other post-employment benefit costs |
563 |
|
70 |
|
- |
|
- |
|
633 |
|
Provision for impairment of receivables |
388 |
|
42 |
|
- |
|
- |
|
430 |
|
Provision for employee benefits |
209 |
|
(120 |
) |
- |
|
- |
|
89 |
|
Deferred installation fee |
75 |
|
11 |
|
- |
|
- |
|
86 |
|
Accrued expenses and provision for inventory obsolescence |
69 |
|
(24 |
) |
- |
|
- |
|
45 |
|
Finance leases |
1 |
|
1 |
|
- |
|
- |
|
2 |
|
Total deferred tax assets |
1.305 |
|
(20 |
) |
- |
|
- |
|
1.285 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
|
Difference between accounting and tax property and equipment net carrying value |
(772 |
) |
(226 |
) |
- |
|
- |
|
(998 |
) |
Valuation of long-term investment |
(11 |
) |
0 |
|
- |
|
- |
|
(11 |
) |
Land rights, intangible assets and others |
(11 |
) |
12 |
|
- |
|
- |
|
1 |
|
Total deferred tax liabilities |
(794 |
) |
(214 |
) |
- |
|
- |
|
(1.008 |
) |
Net deferred tax assets (liabilities) of the Company |
511 |
|
(234 |
) |
- |
|
- |
|
277 |
|
77
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2 6. TAXATION (continued)
g . Deferred tax assets and liabilities (continued)
The details of the Group's deferred tax assets and liabilities are as follows (continued):
|
December 3 1, 201 6 |
|
(Charged) credited to profit or loss |
|
(Charged) credited to other comprehensive income |
|
Reclassification |
|
June 30, 201 7 |
|
Telkomsel |
|
|
|
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
|
|
Provision for employee benefits |
478 |
|
1 |
|
- |
|
- |
|
479 |
|
Provision for impairment of receivables |
143 |
|
26 |
|
- |
|
- |
|
169 |
|
Total deferred tax assets |
621 |
|
27 |
|
- |
|
- |
|
648 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
|
Finance leases |
(549 |
) |
(87 |
) |
- |
|
- |
|
(636 |
) |
Difference between accounting and tax property and equipment net carrying value |
(482 |
) |
20 |
) |
- |
|
(125) |
|
(587 |
) |
License amortization |
(48 |
) |
(2 |
) |
- |
|
|
|
(50 |
) |
Total deferred tax liabilities |
(1,079 |
) |
(69 |
) |
- |
|
(125) |
|
(1,273 |
) |
Net deferred tax liabilities of Telkomsel |
(458 |
) |
(42 |
) |
- |
|
(125) |
|
(625 |
) |
Net deferred tax liabilities of the other subsidiaries |
(287 |
) |
(39 |
) |
- |
|
- |
|
(326 |
) |
Total deferred tax liabilities – net |
(745 |
) |
196 |
|
- |
|
(125) |
|
(674 |
) |
Net deferred tax assets of the other subsidiaries |
258 |
|
70 |
|
- |
|
- |
|
328 |
|
Total deferred tax assets – net |
769 |
|
(442 |
) |
- |
|
- |
|
327 |
|
|
December 3 1, 201 5 |
|
(Charged) credited to profit or loss |
|
(Charged) credited to other comprehensive income |
|
(Charged) credited to equity |
|
December 31 , 2016 |
|
The Company |
|
|
|
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
|
|
Net periodic pension and other post-employment benefit costs |
335 |
|
102 |
|
126 |
|
- |
|
563 |
|
Provision for impairment of receivables |
429 |
|
(41 |
) |
- |
|
- |
|
388 |
|
Provision for employee benefits |
97 |
|
112 |
|
- |
|
- |
|
209 |
|
Deferred installation fee |
65 |
|
10 |
|
- |
|
- |
|
75 |
|
Accrued expenses and provision for inventory obsolescence |
211 |
|
(142 |
) |
- |
|
- |
|
69 |
|
Finance leases |
69 |
|
(68 |
) |
- |
|
- |
|
1 |
|
Total deferred tax assets |
1 , 206 |
|
(27 |
) |
126 |
|
- |
|
1,305 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
|
Difference between accounting and tax property and equipment net carrying value |
(1,597 ) |
|
825 |
|
- |
|
- |
|
(772 |
) |
Valuation of long-term investment |
(45 ) |
|
34 |
|
- |
|
- |
|
(11 |
) |
Land rights, intangible assets and others |
(23 ) |
|
12 |
|
- |
|
- |
|
(11 |
) |
Total deferred tax assets |
(1,665 ) |
|
871 |
|
- |
|
- |
|
(794 |
) |
Net deferred tax assets (liabilities) of the Company |
(459 ) |
|
844 |
|
126 |
|
- |
|
511 |
|
Telkomsel |
|
|
|
|
|
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
|
|
Provision for employee benefits |
349 |
|
55 |
|
74 |
|
- |
|
478 |
|
Provision for impairment of receivables |
138 |
|
5 |
|
- |
|
- |
|
143 |
|
Total deferred tax assets |
487 |
|
60 |
|
74 |
|
- |
|
621 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
|
Finance leases |
(385 |
) |
(164 |
) |
- |
|
- |
|
(549 |
) |
Difference between accounting and tax property and equipment net carrying value |
(1,395 |
) |
913 |
|
- |
|
- |
|
(482 |
) |
License amortization |
(52 |
) |
4 |
|
- |
|
- |
|
(48 |
) |
Total deferred tax liabilities |
(1,832 |
) |
753 |
|
- |
|
- |
|
(1,079 |
) |
Net deferred tax liabilities of Telkomsel |
(1,345 |
) |
813 |
|
74 |
|
- |
|
(458 |
) |
Net deferred tax liabilities of the other subsidiaries |
(306 |
) |
14 |
|
5 |
|
- |
|
(287 |
) |
Total deferred tax liabilities – net |
(2,110 |
) |
1,286 |
|
79 |
|
- |
|
(745 |
) |
Net deferred tax assets of the other subsidiaries |
201 |
|
50 |
|
3 |
|
4 |
|
258 |
|
Total deferred tax assets – net |
201 |
|
435 |
|
129 |
|
4 |
|
769 |
|
78
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26 . TAXATION (continued)
g . Deferred tax assets and liabilities (continued)
As of June 30, 2017 and December31 , 2016 , the aggregate amounts of temporary differences associated with investments in subsidiaries and associated companies, for which deferred tax liabilities have not been recognized were R p27,646 billion and Rp34,568 billion, respectively.
Realization of the deferred tax assets is dependent upon the Group’s capability of 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 may be reduced if actual future taxable income is lower than estimates.
h . Administration
From 2008 to 201 6 , 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 as amended by Government Regulation No. 77/2013 and the latest by Government Regulation No. 56/2015 in conjunction with PMK No. 238/PMK.03/2008. On the basis of historical data, for the year ended December 31, 2016 , 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, the period is within ten years from the time the tax became due, but not later than 2013, while for fiscal years 2008 and onwards, the period is within five years from the time the tax became due.
The Minist ry of Finance of the Republic of Indonesia has issued Regulation No.85/PMK.03/2012 dated June 6, 2012 as amended by PMK No. 136- P MK.03/2012 dated August 16, 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 of 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 as amended by PMK No. 16/PMK . 010/2016 dated February 3, 2016 . The Company has withheld, deposited, and reported the VAT , PPnBM and also income tax article 22 in accordance with the Regulations.
27 . 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 R p 12,104 billion and Rp9,926 billion by the weighted average number of shares outstanding during the period totaling 99,062,216,600 shares and 98,212,458,358 shares after stock split for six months period ended June 30, 2017 and 2016 , 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 amounting to Rp122.19 and Rp101.07 (in full amount) for the six months period ended June 30, 2017 and 2016 , respectively.
T he Company does not have potentially dilutive financial investments for the six months period ended June 30, 2017 and 2016 .
79
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
28. CASH DIVIDENDS AND GENERAL RESERVE
Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 50 dated April 22, 2016 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of cash dividend and special cash dividend for 2015 amounting to Rp7,744 billion (Rp7 8.86 per share) and Rp 1, 549 billion (Rp1 5 . 77 per share) , respectively. On May 2 6, 2016, the Company paid the cash dividend and special cash dividend totalling Rp9,293 billion.
On December 27, 2016, the Company had paid an interim dividend amounting to Rp1,920 billion or totalling Rp19.38 per share.
Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 28 dated April 21, 2017 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of cash dividend and special cash dividend for 2016 amounting to Rp9,691 billion and Rp 1, 935 billion (Rp 117 . 37 per share) , respectively.
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 June 30, 2017 and December 3 1 , 2016 and 2015 amounting to Rp15,337 billion, respectively .
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS
The details of pension and other post-employment benefit liabilities are as follows:
|
Notes |
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Prepaid pension benefit cost |
|
|
|
|
|
|
The Company - funded |
29 a.i . a |
|
- |
|
197 |
|
MDM |
|
|
1 |
|
1 |
|
Infomedia |
|
|
1 |
|
1 |
|
Total |
|
|
2 |
|
199 |
|
Pension benefit and other post-employment benefit obligations |
|
|
|
|
|
|
Pension benefit |
|
|
|
|
|
|
The Company - funded |
29 a.i .a |
|
257 |
|
- |
|
The Company - unfunded |
29 a.i . b |
|
2,414 |
|
2,507 |
|
Telkomsel |
29 a.ii |
|
1,173 |
|
1,193 |
|
Patrakom |
|
|
0 |
|
0 |
|
Sub-total pension benefit |
|
|
3,844 |
|
3,700 |
|
Net periodic p ost-employment health care benefit |
29 b |
|
1,743 |
|
1,592 |
|
Other post-employment benefit |
29 c |
|
490 |
|
502 |
|
Obligation under the Labor Law |
29 d |
|
362 |
|
332 |
|
Total |
|
|
6,439 |
|
6,126 |
|
80
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The breakdown of the net benefit expense recognized in the consolidated statements of profit or loss and other comprehensive income is as follows:
|
Notes |
|
201 7 |
|
201 6 |
|
Pension benefit cost |
|
|
|
|
|
|
The Company- funded |
29 a.i . a |
|
444 |
|
388 |
|
The Company- unfunded |
29 a.i . b |
|
119 |
|
140 |
|
Telkomsel |
29 a.ii |
|
124 |
|
91 |
|
Infomedia |
|
|
- |
|
0 |
|
Total pension benefit cost |
23 |
|
687 |
|
619 |
|
Net periodic post-employment health care
|
23,29b |
|
151 |
|
91 |
|
Other post-employment benefit cost |
23, 29 c |
|
21 |
|
24 |
|
Employee benefit costs under The Labor Law |
23, 29d |
|
- |
|
23 |
|
Total |
|
|
859 |
|
757 |
|
a. Pension benefit costs
i. The Company
a. Funded pension plan
The Company sponsors a defined benefit pension plan for employees with permanent status prior to July 1, 2002. The plan is governed by the pension laws in Indonesia and managed by Telkom Pension Fund (“Dana Pensiun Telkom” or “Dapen”). The pension benefits are paid based on the participating employees’ latest basic salary at retirement and the number of years of their service. The participating employees contribute 18% (before March 2003: 8.4%) of their basic salaries to the pension fund. The Company did not make contributions to the pension fund for the y ears e nded December 31, 201 4 , 201 5 and 201 6 .
81
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
a. Funded pension plan (continued)
The following table presents the changes in projected pension benefit obligations, changesin pension benefit plan assets, funded status of the pension plan and net amount recognized in the consolidated statements of financial position as of June 30, 2017 and December 3 1, 201 6 , under the defined benefit pension plan:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Changes in projected pension benefit o bligations |
|
|
|
|
Projected pension benefit obligations at beginning of year |
18,849 |
|
16 , 505 |
|
Charged to profit or loss: |
|
|
|
|
Service costs |
179 |
|
363 |
|
Past service cost - plan amendments |
226 |
|
245 |
|
Interest costs |
734 |
|
1,44 4 |
|
Pension plan participants’ contributions |
21 |
|
4 4 |
|
Actuarial (gain) losses |
966 |
|
1,680 |
|
Pension benefits paid |
(646 |
) |
( 1,432 |
) |
Projected pension benefit obligations at end of year |
20,329 |
|
1 8 , 849 |
|
Changes in pension benefit plan assets |
|
|
|
|
Fair value of pension plan assets at beginning of year |
19,046 |
|
17,834 |
|
Interest income |
715 |
|
1,458 |
|
Return on plan assets (excluding amount included in net interest expense) |
966 |
|
1,188 |
|
Pension plan participants’ contributions |
21 |
|
44 |
|
Pension benefits paid |
(646 |
) |
(1,432 |
) |
Plan administration cost |
(30 |
) |
(46 |
) |
Fair value of pension plan assets at end of period |
20,072 |
|
19,046 |
|
Funded status |
(257 |
) |
197 |
|
Effect of asset ceiling |
- |
|
- |
|
Prepaid pension benefit c ost |
(257 |
) |
197 |
|
82
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
a. Funded pension plan (continued)
As of June 30, 2017 and December 3 1 , 2016, plan assets consist of:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
||||
|
Quoted in active market |
|
Unquoted |
|
Quoted in active market |
|
Unquoted |
|
Cash and cash equivalent s |
1,392 |
|
- |
|
1,064 |
|
- |
|
Equity instruments |
|
|
|
|
|
|
|
|
F inance |
1,156 |
|
- |
|
1,039 |
|
- |
|
Consumer goods |
1,344 |
|
- |
|
1,206 |
|
- |
|
Infrastructure, utilities and transportation |
623 |
|
- |
|
536 |
|
- |
|
Construction, property and real estate |
412 |
|
- |
|
577 |
|
- |
|
Basic industry and chemical |
123 |
|
- |
|
130 |
|
- |
|
Trading, service and investment |
339 |
|
- |
|
216 |
|
- |
|
Mining |
78 |
|
- |
|
62 |
|
- |
|
Agriculture |
56 |
|
- |
|
71 |
|
- |
|
Miscellaneous industr ies |
369 |
|
- |
|
361 |
|
- |
|
Equity-based mutual fund |
1,313 |
|
- |
|
1,296 |
|
- |
|
Fixed income instruments |
|
|
|
|
|
|
|
|
Corporate bonds |
- |
|
3,801 |
|
- |
|
3,817 |
|
Government bonds |
8,302 |
|
- |
|
7,978 |
|
- |
|
Mutual funds |
53 |
|
- |
|
30 |
|
- |
|
Non-public equity: |
|
|
|
|
|
|
|
|
Direct placement |
- |
|
227 |
|
- |
|
174 |
|
Property |
- |
|
187 |
|
- |
|
188 |
|
Others |
- |
|
297 |
|
- |
|
301 |
|
Total |
15,560 |
|
4,512 |
|
14,566 |
|
4,480 |
|
Pension plan assets also include Series B shares issued by the Company with fair values totalling Rp432 billion and Rp 395 billion, representing 2.15% and 2. 07 % of total plan assets as of June 30, 2017 and December 3 1 , 2016 , respectively, and bonds issued by the Company with fair value totalling Rp328 billion and Rp 311 billion representing 1.64% and 1 .6 3 % of total plan assets as of June 30, 2017 and December 3 1 , 2016 , 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 Rp1,650 billion and Rp2,600 billion for the six month s period ended June 30, 2017 and for the year ended December 3 1 , 2016 , 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%. Based on Dapen’s financial statement as of December 31, 2016, Dapen’s FSR is above 105%. Therefore, the Company does not expect to contribute to the defined benefit pension plan in 201 7 .
83
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
a. Funded pension plan (continued)
Based on the Company policy issued on July 1, 2014 regarding Pension Regulation by “ Dana Pens iu nTelkom ”, there is an increase in monthly benefits given to the pensioners, widow/widower o r the children of participants who stopped working before the end of June 2002.
During 2015, the Company made settlements to pensioners, widow/widower or the children of participants who have monthly pension benefits under Rp1,500,000 and chose to withdraw their pension benefits in lump sum.
Based on the Company ’s policy issued on June 24, 2016 regarding Pension Regulation by Dana Pensiun Telkom , widow/widower or the children of participants who enrolled before April 20, 1992, will receive increase in monthly pension benefits from 60% to 75% of pension benefits received by the pensioners which became effective starting from January 1, 2016. In addition, the Company provide d other benefits to enhance the pensioners ’ welfare which were provided only in 2016. Such other benefit s consist of Rp6 million per month to pension beneficiaries who retired before end of June 2002 and other benefit of Rp3 million per month to pension beneficiaries who retired starting from the end of June 2002 until the end of May 2016 .
Based on the company's policy issued on June 15, 2016 regarding Pension Regulation by Dana Pensiun Telkom , the Company provided other benefits amounted to Rp4,5 million per month to pension beneficiaries who retired before end of June 2002 and Rp2,5 million per month to pension beneficiaries who retired starting from the end of June 2002 until the end of April 2017. In addition, the Company has made Additional Benefit Fund derived from maximum 10% of development of the pension plan, in condition Dapen’s FSR is above 105% and Dapen’s Return on Investment (“ROI”) is above the actuarial interest rate. The amount and timing of payment depend on the availability of additional benefit fund that set by Dapen’s Managements and approved by Dapen’s Commisioners in Annual Strategic Plan.
The movements of the prepaid pension benefit cost during the six months period ended June 30, 2017 and for the year ended December 3 1 , 2016 are as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Prepaid pension benefit cost at beginning of year |
197 |
|
1,329 |
|
Net periodic pension benefit cost |
(454 |
) |
(640 |
) |
Actuarial gain (losses) recognized in OCI |
(966 |
) |
(1,680 |
) |
Asset ceiling recognized in OCI |
- |
|
- |
|
Return on plan assets (excluding amount included in net interest expense) |
966 |
|
1,188 |
|
Prepaid pension benefitcost at end of period |
(257 |
) |
197 |
|
84
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
a. Funded pension plan (continued)
The components of net periodic cost for the six months periods ended June 30, 2017 and 2016 are as follows:
|
201 7 |
|
201 6 |
|
Service costs |
179 |
|
171 |
|
Past service cost - plan amendments |
226 |
|
245 |
|
Plan administration cost |
30 |
|
23 |
|
Net interest cost |
19 |
|
(34 |
|
Settlement |
- |
|
- |
|
Net periodic pension benefit cost |
454 |
|
405 |
|
Amount charged to subsidiaries under contractual agreements |
(10 |
) |
(17 |
) |
Net periodic pension benefit cost |
444 |
|
388 |
|
Amounts recognized in OCI are as follows:
|
201 7 |
|
201 6 |
|
Actuarial losses recognized during the year due to |
966 |
|
1,311 |
|
Effect of asset ceiling |
- |
|
- |
|
Return on plan assets (excluding amount included in net interest expense) |
(966 |
) |
(1,311 |
) |
Net |
- |
|
- |
|
The actuarial valuation for the defined benefit pension plan was performed based on the measurement date as of December 31, 201 6 and 2015, with reports dated February 22, 2017 and Februar y 25, 2016 , respectively, by PT Towers Watson Purbajaga (“TWP”), an independent actuary in association with Wil l is Towers Watson (“ W TW”) (formerly Towers Watson ). The principal actuarial assumptions used by the independent actuary as of December 31, 2016 and 2015 are as follows:
|
2016 |
|
2015 |
|
Discount rate |
8.00% |
|
9.00% |
|
Rate of compensation increases |
8.00% |
|
8.00% |
|
Indonesian mortality table |
2011 |
|
2011 |
|
b. Unfunded pension plan
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 with permanent status hired 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 Rp9 billion for the six months period ended June 30, 2017 and for the years ended December 31, 2016, respectively.
85
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
b. Unfunded pension plan (continued)
Since 2007, the Company has provided pension benefit based on uniformization for both participants prior to and from April 20, 1992 effective for employees retiring beginning February 1, 2009. In 2010, the Company replaced the uniformization 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 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 since April 1, 2012, whereby the employee is required to file a request for MPP and if the employee does not file the request, such employee is required to work until the retirement date.
The following table presents the changes in the unfunded projected pension benefit obligations for MPS and MPP for the six month s period ended June 30 , 2017 and for the year ended December 3 1 , 2016 :
|
June 30, 2017 |
|
Deceember 31, 201 6 |
|
Unfunded projected pension benefit obligations at beginning of year |
2,507 |
|
2,500 |
|
Service costs |
25 |
|
64 |
|
Interest costs |
94 |
|
215 |
|
Actuarial losses recognized in OCI |
- |
|
119 |
|
Benefits paid by employer |
(212 |
) |
(391 |
) |
Unfunded projected pension benefit obligations at end of period |
2,414 |
|
2,507 |
|
The components of total periodic pension benefit cost for
the six months period ended
June 30, 2017 and 2016 are as
follows:
|
201 7 |
|
201 6 |
|
Service costs |
25 |
|
32 |
|
Net interest costs |
94 |
|
108 |
|
Total |
119 |
|
140 |
|
Amounts recognized in OCI amounted to Rp Nil billion as of June 30, 2017 and 2016, respectively.
86
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
b. Unfunded pension plan (continued)
The
actuarial valuation for the defined benefit pension plan was performed, based on
the measurement date as of December 31, 201
6
and
2015, with reports dated
February 22, 2017
and
February 25, 2016
,
respectively, by TWP, an independent
actuary in association with WTW. The principal actuarial assumptions used by the
independent actuary for the years ended December 31, 2016 and 2015 are as
follows:
|
2016 |
|
2015 |
|
Discount rate |
7.75% - 8.00% |
|
9.00% |
|
Rate of compensation increases |
6.10% - 8.00% |
|
varies |
|
Indonesia n mortality table |
2011 |
|
2011 |
|
ii Telkomsel
Telkomsel sponsors 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 Rp144 billion and Rp 83 billion for the six month s period ended June 30, 2017 and for the year ended December 3 1 , 2016 , respectively.
The following table presents the changes in projected pension benefit obligation, changes in pension benefit plan assets, funded status of the pension plan and net amount recognized in the consolidated statement of financial position for the six months period ended June 30, 2017 and for the year ended December 3 1 , 2016 , under Telkomsel’s defined benefit pension plan:
|
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Changes in projected pension benefit obligation |
|
|
|
|
|
Projected pension benefit obligation at beginning of year |
|
2,034 |
|
1,415 |
|
Charged to profit or loss: |
|
|
|
|
|
Service costs |
|
75 |
|
107 |
|
Net i nterest costs |
|
86 |
|
130 |
|
Actuarial (gain) losses recognized in OCI |
|
- |
|
392 |
|
Benefits paid |
|
- |
|
(10 |
) |
Projected pension benefit obligation at end of period |
|
2,195 |
|
2,034 |
|
Changes in pension benefit plan assets |
|
|
|
|
|
Fair value of plan assets at beginning of year |
|
841 |
|
612 |
|
Interest income in profit or loss |
|
37 |
|
56 |
|
Return on plan assets (excluding amount included in net interest expense) |
|
- |
|
100 |
|
Employer’s contributions |
|
144 |
|
83 |
|
Benefits paid |
|
- |
|
(10 |
) |
Fair value of plan assets at end ofperiod |
|
1 , 022 |
|
841 |
|
Funded status |
|
(1,173 |
) |
(1,193 |
) |
Provision for pension benefit c ost |
|
(1,173 |
) |
(1,193 |
) |
87
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
ii. Telkomsel (continued)
Movements of the pension benefit obligation for the six month s period ended June 30, 2017 and for the years ended December 3 1 , 2016 :
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Provision for pension benefit cost at beginning of year |
1,193 |
|
803 |
|
Periodic pension benefit cost |
124 |
|
181 |
|
Actuarial (gain) losses recognized in OCI |
- |
|
392 |
|
Return on plan assets (excluding amount included in net interest expense) |
- |
|
(100 |
) |
Employer contributions |
(144 |
) |
(83 |
) |
Provision for pension benefit cost at end of period |
1,173 |
|
1,193 |
|
The components of the periodic pension benefit cost for the six months period ended June 30, 2017 and 2016 are as follows:
|
201 7 |
|
201 6 |
|
Service costs |
75 |
|
54 |
|
Net interest cost |
49 |
|
37 |
|
Total periodic pension benefit cost |
124 |
|
91 |
|
Amounts recognized in OCI amounted to RpNil billion as of June 3 0 , 2017 and 2016, respectively.
The actuarial valuation for the defined benefit pension plan was performed based on the measurement date as of December 31, 2016 and 2015, with reports dated February 7 , 2017 and February 12 , 201 6 respectively, by TWP, an independent actuary in association with W TW. The principal actuarial assumptions used by the independent actuary as of December 31 , 201 6 and 2015, are as follows:
|
2016 |
|
2015 |
|
Discount rate |
8.25% |
|
9.25% |
|
Rate of compensation increases |
8.00% |
|
8.00% |
|
Indonesian mortality table |
2011 |
|
2011 |
|
88
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29 . PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Post-employment health care benefitcost
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 Yayasan Kesehatan Telkom (“Yakes”).
The defined contribution post-employment health care benefit plan is provided to employees with permanent status hired on or after November 1, 1995 or employees with terms of service less than 20 years at the time of retirement . The Company make contribution to the plan for the six months period ended June 30, 2017 and for the year ended December 31, 2016 amounting to Rp19 billion and Rp17 billion, respectively.
The following table presents the changes in projected post-employment health care benefit provision, change in post-employment health care benefit plan assets, funded status of the post-employment health care benefit plan, and net amount recognized in the Company’s consolidated statement of financial position as of June 30 , 2017 and December 3 1 , 2016 :
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Changes in projected post-employment health care benefit provision |
|
|
|
|
Projected post-employment health care benefit obligation at beginning of year |
13,357 |
|
10,942 |
|
Charged to profit or loss: |
|
|
|
|
Service costs |
- |
|
9 |
|
Net interest cost |
557 |
|
994 |
|
Actuarial losses |
583 |
|
1,828 |
|
Post-employment health care ben efits paid |
(242 |
) |
(416 |
) |
Projected post-employment health care benefit provision at end of period |
14,255 |
|
13,357 |
|
Changes in post-employment health care benefit plan assets |
|
|
|
|
Fair value of plan assets at beginning of year |
11,765 |
|
10,824 |
|
Interest income |
490 |
|
982 |
|
Return on plan assets (excluding amount included in
|
583 |
|
519 |
|
P ost-employment health care benefits paid |
(242 |
) |
(416 |
) |
Administrative expense paid |
(84 |
) |
(144 |
) |
Fair value of plan assets at end of year |
12,512 |
|
11,765 |
|
Funded status |
(1,743 |
) |
(1,592 |
) |
Projected post-employment health care benefit obligation - net |
(1,743 |
) |
(1,592 |
) |
89
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29 . PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Post-employment health care benefit cost (continued)
As of June 30, 2017 and December 3 1 , 2016, plan assets consist s of:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
||||
|
Quoted in active market |
|
Unquoted |
|
Quoted in active market |
|
Unquoted |
|
Cash and cash equivalents |
1,261 |
|
- |
|
894 |
|
- |
|
Equity instruments: |
|
|
|
|
|
|
|
|
Manufacturing & consumer |
838 |
|
- |
|
754 |
|
- |
|
Finance industries |
663 |
|
- |
|
540 |
|
- |
|
Construction |
291 |
|
- |
|
351 |
|
- |
|
Infrastructure and telecommunication |
333 |
|
- |
|
245 |
|
- |
|
Wholesale |
114 |
|
- |
|
101 |
|
- |
|
Mining |
51 |
|
- |
|
27 |
|
- |
|
Other Industries: |
|
|
|
|
|
|
|
|
Service s |
30 |
|
- |
|
17 |
|
- |
|
Agriculture |
35 |
|
- |
|
44 |
|
- |
|
Biotechnology and P harma I ndustry |
81 |
|
- |
|
6 |
|
- |
|
O thers |
2 |
|
- |
|
2 |
|
- |
|
Equity-based mutual fund s |
1,230 |
|
- |
|
1,311 |
|
- |
|
Fixed income instruments: |
|
|
|
|
|
|
|
|
Fixed income mutual funds |
7,330 |
|
- |
|
7,241 |
|
- |
|
Unlisted shares: |
|
|
|
|
|
|
|
|
Private placement |
- |
|
244 |
|
- |
|
232 |
|
Others |
- |
|
9 |
|
- |
|
- |
|
Total |
12,259 |
|
253 |
|
11,533 |
|
232 |
|
Yakes plan assets also include Series B shares issued by the Company with fair value totalling Rp252 billion and Rp 217 billion, representing 2.01 % and 1. 84 % of total plan assets as of June 30, 2017 and December 3 1 , 2016 , respectively.
The expected return is determined based on market expectation for the returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets was Rp989 billion and Rp1,357 billion for the six months period ended June 30, 2017 and for the year ended December 3 1 , 2016 , respectively.
The movements of the projected post-employment health care benefit obligation for the six months period ended June 30, 2017 and for the year ended December 31, 201 6 are as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Projected post-employment health care benefit obligations at beginning of year |
1,592 |
|
118 |
|
Net periodic post-employment health care benefit |
151 |
|
165 |
|
Actuarial losses ( gain ) recognized in OCI |
(583 |
) |
1,828 |
|
Return on plan assets (after deducting the value which is included in net interest expense) |
583 |
|
(519 |
|
Projected post-employment health care benefit obligation - net |
1,743 |
|
1,592 |
|
90
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29 . PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Post-employment health care benefit cost (continued)
The c omponents of net periodic post-employment health care benefit cost for the six months period ended June 30, 2017 and 2016 are as follows:
|
201 7 |
|
201 6 |
|
Service costs |
- |
|
5 |
|
Plan administration cost |
84 |
|
81 |
|
Net interest cost |
67 |
|
5 |
|
Periodic post-employment health care benefit cost |
151 |
|
91 |
|
Amount charged to subsidiaries under contractual agreement |
- |
|
(1 |
) |
Net periodic post-employment health care benefit cost less cost charged to subsidiaries |
151 |
|
90 |
|
Amounts recognized in OCI are as follows:
|
2017 |
|
2016 |
|
Actuarial (losses) gain recognized at beginning of year |
583 |
|
773 |
|
Return on plan assets (after deducting the value which is included in net interest expense) |
(583 |
) |
(773 |
) |
Net |
- |
|
- |
|
The actuarial valuation for the post-employment health care benefits plan was performed based on the measurement date as of December 31, 201 6 and 2015, with reports dated Februar y 2 2 , 201 7 and February 25, 2016, respectively, by TWP, an independent actuary in association with W TW. The principal actuarial assumptions used by the independent actuary as ofDecember 31, 2016 and 201 5 are as follows:
c. Other post-employment benefits cost
The Company provides other post-employment 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 ” ).
91
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29 . PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
c. Other post-employment benefits provisions (continued)
The movements of the unfunded projected other post-employment benefit obligations for the six months period ended June 30, 201 7 and for the year ended December 31, 201 6 are as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Unfunded projected benefit obligations at beginning of year |
502 |
|
497 |
|
Charged to profit or loss: |
|
|
|
|
Service costs |
3 |
|
7 |
|
Net interest cost |
18 |
|
41 |
|
Actuarial losses recognized in OCI |
- |
|
20 |
|
Benefits paid by employer |
(33 |
) |
(63 |
) |
Provision for other post-employment benefits |
490 |
|
502 |
|
The components of the p rojected other post-employment benefit cost for the six months period ended June 30, 2017 and 2016 are as follows:
Amounts recognized in OCI amounted to Rp Nil billion as of June 30, 2017 and 2016, respectively.
The actuarial valuation for the other post-employment benefits plan was performed based on measurement date as of December 31, 2016 and 2015, with reports dated Februar y 2 2 , 201 7 and February 2 5 , 201 6 respectively, by TWP, an independent actua r y in association with WTW. The principal actuarial assumptions used by the independent actuary as of December 31, 2016 and 2015, are as follows:
|
2016 |
|
2015 |
|
Discount rate |
7.75% |
|
9.00% |
|
Indonesian mortality table |
2011 |
|
2011 |
|
d. Obligation under the Labor Law
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. The total related obligation recognized as of June 30 , 201 7 and December 31, 2016 amounted to Rp362 billion and Rp 332 billion, respectively.The related employee benefits cost charged to expense amounted to Rp31 billion and Rp23 billion for the six months period ended June 30 , 201 7 and 2016, respectively (Note 23 ) .
92
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29 . PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
e. Maturity Profile of Defined Benefit Obligation (“DBO”)
The timing of benefits payments and weighted a verage duration of DBO for 2016 are as follows (in billions of R upiah):
f. Sensitivity Analysis
1% change in discount rate and rate of compensation would have effect on DBO, as follows:
|
Discount Rate |
|
Rate of Compensation |
|
||||
|
1% Increase |
|
1% Decrease |
|
1% Increase |
|
1% Decrease |
|
Sensitivity |
Increase (decrease) in amounts |
|
Increase (decrease) in amounts |
|
||||
Funded |
(1,703 |
) |
2,006 |
|
414 |
|
(428 |
) |
Unfunded |
(66 |
) |
70 |
|
68 |
|
(68 |
) |
Telkomsel |
(117 |
) |
125 |
|
124 |
|
(117 |
) |
Post-employment health care benefits
|
(1,647 |
) |
2,008 |
|
2,170 |
|
(1,800 |
) |
Other post-employment benefits |
(16 |
) |
17 |
|
- |
|
- |
|
The sensitivity analysis has 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 DBO at the end of the year. 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 analysis from the previous period.
30. LSA PROVISIONS
Telkomsel and Patrakom provide certain cash awards or certain number of days leave benefits to their employees based on the employees’ length of service requirements, including LSA and LSL. LSAare either paid at the time the employees reach certain years of 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 m ee t the requisite number of years of service and reach a certain minimum age.
The obligation with respect to these awards which was determined based on an actuarial valuation using the Projected Unit Credit method, amounted to Rp627 billion and Rp 613 billion as of June 3 0 , 201 7 and December 31, 201 6 , respectively . The related benefit costs charged to expense amounted to Rp60 billion and Rp53 billion for the six months period ended June 30, 2017 and 2016, respectively (Note 23).
93
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY 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 parties |
|
Nature of accounts /transactions |
|
The Government Ministry of Finance |
|
Majority stockholder |
|
Internet and data service revenue s , other telecommunication service revenue s , finance income, finance costs , and investment in financial instruments |
|
State-owned enterprises |
|
Entity under common control |
|
Internet and data service revenue s , other telecommunication services revenue s , operating expenses and purchase of property and equipment |
|
Indosat |
|
Entity under common control |
|
Interconnection revenue s , lease d lines revenues , satellite transponder usage revenue s ,interconnection expenses, telecommunication facilities usage expenses, operating and maintenance expenses, usage of data communication network system expenses |
|
PT Aplikanusa Lintasarta (“Lintasarta”) |
|
Entity under common control |
|
Interconnection revenue s , network service revenue s , leased lines expenses, and usage of communication network system expenses |
|
Indosat Mega Media |
|
Entity under common control |
|
Network service revenues |
|
PT Perusahaan Listrik Negara (“PLN”) |
|
Entity under common control |
|
Electricity expenses , finance income, finance costs , investment in financial instrument |
|
PT Pertamina (Persero) (“Pertamina”) |
|
Entity under common control |
|
Internet and data service revenue s ,other telecommunication service revenue s |
|
PT Kereta Api Indonesia (“KAI”) |
|
Entity under common control |
|
Internet and data service revenue s ,other telecommunication service revenue s |
|
PT Pegadaian |
|
Entity under common control |
|
Internet and data service revenue s ,other telecommunication service revenue s |
|
PT Garuda Indonesia Tbk |
|
Entity under common control |
|
Internet and data service revenue s ,other telecommunication service revenue s |
|
PT Indonesia Comnet Plus (“ICON Plus”) |
|
Entity under common control |
|
Internet and data service revenue s ,other telecommunication service revenue s, interconnection revenue s, network revenues and interconnection expenses |
|
PT Asuransi Jasa Indonesia (“Jasindo”) |
|
Entity under common control |
|
Satellite insurance expense s and vehicle insurance expenses |
|
PT Adhi Karya Tbk (“ Adhi Karya ”) |
|
Entity under common control |
|
Purchase of materials and construction services |
|
PT Waskita Karya Tbk (“ Waskita ”) |
|
Entity under common control |
|
Purchase of materials and construction services |
|
INTI |
|
Entity under common control |
|
Purchase of property and equipment and construction services |
|
LEN |
|
Entity under common control |
|
Purchase of property and equipment and construction services |
|
State-owned banks |
|
Entity under common control |
|
Finance income and finance costs |
|
BNI |
|
Entity under common control |
|
Internet and data service revenue s , o ther telecommunication service revenue s , finance income and finance costs |
|
Bank Mandiri |
|
Entity under common control |
|
Internet and data service revenue s , o ther telecommunication service revenue s , finance income and finance costs |
|
BRI |
|
Entity under common control |
|
Internet and data service revenue s , o ther telecommunication service revenue s , finance income and finance costs |
|
BTN |
|
Entity under common control |
|
Internet and data service revenue s , o ther telecommunication service revenue s , finance income and finance costs |
|
94
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. 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 parties |
|
Nature of accounts /transactions |
|
PT Bank Syariah Mandiri (“BSM”) |
|
Entity under common control |
|
Internet and data service revenue s , o ther telecommunication service revenue s , and finance costs |
|
PT Bank BRI Syariah (“BRI Syariah”) |
|
Entity under common control |
|
Internet and data service revenue s , o ther telecommunication service revenue s , and finance costs |
|
Bahana |
|
Entity under common control |
|
Available-for-sale financial assets, bonds and notes |
|
Sarana Multi Infrastruktur |
|
Entity under common control |
|
Finance costs |
|
CSM |
|
Associated company |
|
Satelite transponder usage revenue s , network service revenues and transmission lease expenses |
|
Indonusa |
|
Associated company |
|
Network service revenues and data communication expenses |
|
PT Poin Multi Media Nusantara (“POIN”) |
|
Associated company |
|
Purchase of handset |
|
Yakes |
|
Other related entities |
|
Medical expense s |
|
Koperasi Pegawai Telkom(“Kopegtel”) |
|
Other related entities |
|
Purchase of property and equipment construction and instal l ation services , lease s of building s e xpenses, lease of vehicles expenses , purchase s of vehicles ,and purchase s of materials and constructionservice, maintenance and cleaning serviceexpenses, and RSA revenues |
|
PT Sandhy Putra Makmur (“SPM”) |
|
Other related entities |
|
Leases of buildings expenses, leases of vehicles expenses, purchase of materials and construction services, utilities of maintenance and cleaning services |
|
Koperasi Pegawai Telkomsel (“Kisel”) |
|
Other related entities |
|
Internet and data service revenue s , other telecommunication service revenues, leases of vehicles expenses, printing and distribution of customer bills expenses, collection fee, other services fee, distribution of SIM cards and pulse reload voucher and purchase of property and equipment |
|
PT Graha Informatika Nusantara (“Gratika”) |
|
Other related entities |
|
Interconnection revenue s , network service revenues, installation expense s , maintenance expenses, and purchase of property and equipment |
|
PT Pembangunan Telekomunikasi Indonesia (“Bangtelindo”) |
|
Other related entities |
|
Purchase of property and equipment |
|
Directors and commissioners |
|
Key management personnel |
|
Honorarium and facilities |
|
The outstanding balances of trade receivables and payables at year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. As of June 30, 2017, the Group recorded impairment of receivables from related parties of Rp(123) billion. Impairment assessment is undertaken each financial year through examining the current status of existing receivables and historical collection experience.
95
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties
The following are significant transactions with related parties:
|
|
2017 |
|
2018 |
|
||||
|
|
Amount |
|
% of total revenues |
|
Amount |
|
% of total revenues |
|
REVENUES |
|
|
|
|
|
|
|
|
|
Majority S tockholder Government |
|
79 |
|
0.12 |
|
87 |
|
0.15 |
|
Entities under common control |
|
|
|
|
|
|
|
|
|
Indosat |
|
881 |
|
1.38 |
|
579 |
|
1.03 |
|
BRI |
|
140 |
|
0.22 |
|
113 |
|
0.20 |
|
KAI |
|
84 |
|
0.13 |
|
42 |
|
0.07 |
|
Bank Mandiri |
|
66 |
|
0.10 |
|
90 |
|
0.16 |
|
BTN |
|
64 |
|
0.10 |
|
43 |
|
0.08 |
|
Pembangunan Perumahan |
|
61 |
|
0.10 |
|
- |
|
- |
|
Pertamina |
|
59 |
|
0.09 |
|
47 |
|
0.08 |
|
Lintasarta |
|
50 |
|
0.08 |
|
52 |
|
0.09 |
|
BNI |
|
41 |
|
0.06 |
|
82 |
|
0.15 |
|
Semen Indonesia |
|
30 |
|
0.05 |
|
- |
|
- |
|
Garuda Indonesia |
|
28 |
|
0.04 |
|
49 |
|
0.09 |
|
ICON Plus |
|
24 |
|
0.04 |
|
28 |
|
0.05 |
|
Pegadaian |
|
23 |
|
0.04 |
|
34 |
|
0.06 |
|
Others |
|
297 |
|
0.45 |
|
99 |
|
0.19 |
|
Sub-total |
|
1,848 |
|
2.88 |
|
1,258 |
|
2.25 |
|
Other related entities |
|
|
|
|
|
|
|
|
|
Gratika |
|
18 |
|
0.03 |
|
23 |
|
0.04 |
|
Yakes |
|
8 |
|
0.01 |
|
- |
|
- |
|
Others |
|
9 |
|
0.01 |
|
23 |
|
0.04 |
|
Sub-total |
|
35 |
|
0.05 |
|
46 |
|
0.08 |
|
Associated companies |
|
|
|
|
|
|
|
|
|
Indonusa |
|
56 |
|
0.09 |
|
59 |
|
0.10 |
|
CSM |
|
- |
|
- |
|
17 |
|
0.03 |
|
Others |
|
7 |
|
0.01 |
|
1 |
|
0.00 |
|
Sub-total |
|
63 |
|
0.10 |
|
77 |
|
0.13 |
|
Others |
|
0 |
|
0.00 |
|
88 |
|
0.16 |
|
Total |
|
2,025 |
|
3.15 |
|
1,556 |
|
2.61 |
|
96
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties
|
201 7 |
|
201 6 |
|
||||
|
Amount |
|
% of total expenses |
|
Amount |
|
% of total expenses |
|
EXPENSES |
|
|
|
|
|
|
|
|
Entities under common control |
|
|
|
|
|
|
|
|
PLN |
1,112 |
|
2.75 |
|
310 |
|
0.85 |
|
Indosat |
443 |
|
1.10 |
|
465 |
|
1.28 |
|
Jasindo |
127 |
|
0.31 |
|
112 |
|
0.31 |
|
BNI |
52 |
|
0.13 |
|
- |
|
- |
|
Pos Indonesia |
1 |
|
0.00 |
|
11 |
|
0.03 |
|
Others |
84 |
|
0.21 |
|
39 |
|
0.11 |
|
Sub-total |
1,819 |
|
4.50 |
|
937 |
|
2.58 |
|
Other related entities |
|
|
|
|
|
|
|
|
Kisel |
576 |
|
1.43 |
|
604 |
|
1.66 |
|
Kopegtel |
263 |
|
0.65 |
|
271 |
|
0.74 |
|
Yakes |
79 |
|
0.20 |
|
82 |
|
0.23 |
|
Others |
41 |
|
0.09 |
|
13 |
|
0.04 |
|
Sub-total |
959 |
|
2.37 |
|
970 |
|
2.67 |
|
97
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
The following are significant transactions with related parties (continued):
|
201 7 |
|
201 6 |
|
||||
|
Amount |
|
% of total expenses |
|
Amount |
|
% of total expenses |
|
EXPENSES (continued) |
|
|
|
|
|
|
|
|
Associated companies |
|
|
|
|
|
|
|
|
Indonusa |
121 |
|
0.30 |
|
76 |
|
0.21 |
|
Teltranet |
43 |
|
0.11 |
|
- |
|
- |
|
Others |
13 |
|
0.03 |
|
- |
|
- |
|
Sub-total |
177 |
|
0.44 |
|
76 |
|
0.21 |
|
Others |
20 |
|
0.05 |
|
- |
|
- |
|
Total |
2,975 |
|
7.36 |
|
1,983 |
|
5.46 |
|
|
201 7 |
|
201 6 |
|
||||
|
Amount |
|
% of total finance income |
|
Amount |
|
% of total finance income |
|
FINANCE INCOME |
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
Government |
0 |
|
0.00 |
|
- |
|
- |
|
Entity under common control |
|
|
|
|
|
|
|
|
State-owned banks |
367 |
|
46.81 |
|
476 |
|
53.72 |
|
Others |
2 |
|
0.26 |
|
2 |
|
0.23 |
|
Total |
369 |
|
47.07 |
|
478 |
|
53.95 |
|
|
201 7 |
|
201 6 |
|
||||
|
Amount |
|
% of total finance costs |
|
Amount |
|
% of total finance costs |
|
FINANCE COSTS |
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
Government |
28 |
|
2.07 |
|
35 |
|
2.69 |
|
Entity under common control |
|
|
|
|
|
|
|
|
State-owned banks |
401 |
|
29.70 |
|
550 |
|
42.28 |
|
Total |
429 |
|
31.77 |
|
585 |
|
44.97 |
|
98
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
The following are significant transactions with related parties (continued):
|
201 7 |
|
201 6 |
|
||||
|
Amount |
|
% of total purchases |
|
Amount |
|
% of total purchases |
|
PURCHASES OF PROPERTY AND EQUIPMENTS (Note 9) |
|
|
|
|
|
|
|
|
Entity under common control |
|
|
|
|
|
|
|
|
INTI |
162 |
|
1.24 |
|
83 |
|
0.60 |
|
LEN |
68 |
|
0.52 |
|
- |
|
- |
|
Sub-total |
230 |
|
1.76 |
|
83 |
|
0.60 |
|
Other related entities |
|
|
|
|
|
|
|
|
Kisel |
55 |
|
0.42 |
|
31 |
|
0.23 |
|
Kopegtel |
48 |
|
0.37 |
|
41 |
|
0.30 |
|
Bangtelindo |
27 |
|
0.21 |
|
69 |
|
0.50 |
|
SPM |
17 |
|
0.13 |
|
34 |
|
0.25 |
|
Gratika |
32 |
|
0.25 |
|
- |
|
- |
|
Sub-total |
179 |
|
1.38 |
|
175 |
|
1.28 |
|
Others |
11 |
|
0.08 |
|
- |
|
- |
|
Total |
420 |
|
3.22 |
|
258 |
|
1.88 |
|
|
201 7 |
|
201 6 |
|
||||
|
Amount |
|
% of total revenues |
|
Amount |
|
% of total revenues |
|
DISTRIBUTION OF SIM CARD AND VOUCHER |
|
|
|
|
|
|
|
|
Other related entities |
|
|
|
|
|
|
|
|
Kisel |
2,182 |
|
3.41 |
|
2,379 |
|
4.21 |
|
Tiphone |
1,925 |
|
3.01 |
|
- |
|
- |
|
Gratika |
207 |
|
0.32 |
|
215 |
|
0.38 |
|
Total |
4,314 |
|
6.74 |
|
2,594 |
|
4.59 |
|
|
|
June 30, 2017 |
|
December 31, 2016 |
|
||||
|
|
Amount |
|
% of total assets |
|
Amount |
|
% of total assets |
|
a. |
Cash and cash equivalents (Note 3) |
12,702 |
|
7.14 |
|
17,477 |
|
9.73 |
|
b. |
Other current financial assets (Note 4) |
855 |
|
0.48 |
|
1,204 |
|
0.67 |
|
c. |
Trade receivables - net (Note 5) |
1,936 |
|
1.09 |
|
894 |
|
0.50 |
|
d. |
Advances and prepaid expenses (Note 7) |
33 |
|
0.02 |
|
93 |
|
0.05 |
|
e. |
Advances and other non -current assets ( Note 10) |
331 |
|
0.19 |
|
310 |
|
0.17 |
|
99
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
Presented below are balances of accounts with related parties (continued):
|
|
June 30, 2017 |
|
December 31, 2016 |
|
||||
|
|
Amount |
|
% of total liabilities |
|
Amount |
|
% of total liabilities |
|
f. |
Trade payables (Note 1 2 ) |
|
|
|
|
|
|
|
|
|
Entities under common control |
|
|
|
|
|
|
|
|
|
INTI |
388 |
|
0.51 |
|
625 |
|
0.84 |
|
|
Indosat |
186 |
|
0.25 |
|
275 |
|
0.37 |
|
|
LEN |
27 |
|
0.51 |
|
137 |
|
0.18 |
|
|
Adhi Karya |
14 |
|
0.02 |
|
81 |
|
0,11 |
|
|
S tate-owned enterprises |
55 |
|
0.07 |
|
60 |
|
0.08 |
|
|
Sub-total |
670 |
|
1.36 |
|
1, 178 |
|
1, 58 |
|
|
Other related entities |
313 |
|
0.41 |
|
369 |
|
0,50 |
|
|
Total |
983 |
|
1.77 |
|
1 , 547 |
|
2, 08 |
|
g. |
Accrued expenses (Note 13) |
|
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
|
Government |
10 |
|
0.01 |
|
12 |
|
0.02 |
|
|
Entit ies under common control |
|
|
|
|
|
|
|
|
|
State-owned enterprises |
128 |
|
0.17 |
|
127 |
|
0.17 |
|
|
State-owned banks |
39 |
|
0.05 |
|
52 |
|
0.07 |
|
|
Subt otal |
167 |
|
0.22 |
|
179 |
|
0.24 |
|
|
Other related entities |
|
|
|
|
|
|
|
|
|
Kisel |
212 |
|
0.28 |
|
118 |
|
0.16 |
|
|
Others |
- |
|
- |
|
5 |
|
0.01 |
|
|
Total |
389 |
|
0.51 |
|
314 |
|
0.43 |
|
h. |
Advances from customers and suppliers |
|
|
|
|
|
|
|
|
|
Majority stockholder |
|
|
|
|
|
|
|
|
|
Government |
19 |
|
0.03 |
|
19 |
|
0.03 |
|
|
Entities under common control |
|
|
|
|
|
|
|
|
|
PLN |
22 |
|
0.03 |
|
12 |
|
0.02 |
|
|
Total |
41 |
|
0.06 |
|
31 |
|
0.05 |
|
i. |
Short-term bank loans (Note 15) |
824 |
|
1.09 |
|
143 |
|
0.19 |
|
j. |
Two-step loans (Note 16a) |
1,203 |
|
1.59 |
|
1,292 |
|
1.74 |
|
k. |
Long-term bank loans(Note 16c) |
7,669 |
|
10.11 |
|
6,325 |
|
8.54 |
|
l. |
Other borrowing (Note 16d) |
1,295 |
|
1.71 |
|
697 |
|
0.94 |
|
100
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
c. Significant agreements with related parties
i. The Government
The Company obtained two-step loans from the Government (Note 1 6a ).
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”.
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 has received 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 t ook 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 to the interconnection agreements for the fixed line networks (local, SLJJ and international) and mobile network for the implementation of the cost-based tariff obligations under the MoCI Regulation No.8/Year 2006. These amendments took effect starting 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 its 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 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.
101
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
d. Remuneration of The Board of Commissioners and Key Management Personel
The Company provides remuneration in the form of salaries/honorarium and facilities to support the governance and oversight duties of the Board of Commissioners and the leadership and management duties of the Board of Directors. The total of such remuneration is as follows:
|
201 7 |
|
201 6 |
|
||||
|
Amount |
|
% of total expenses |
|
Amount |
|
% of total expenses |
|
Board of Directors |
152 |
|
0.38 |
|
189 |
|
0.52 |
|
Board of Commissioners |
48 |
|
0.12 |
|
59 |
|
0.16 |
|
The amounts disclosed in the table are the amounts recognized as an expense during the reporting periods.
32. OPERATING SEGMENT
In 2017, management rearranged the way it manages the Group's business portfolios from a customer-centric approach to a Customer Facing Units (“CFU”) approach that allow the Group to focus on more specific customer markets. This was followed by a change in the Group’s organizational structure to accommodate decision making and assessing performance based on the CFU approach. The change in the way of managing the Company’s business portfolios and the change in the Company's organizational structure led management, as the Company's Chief Operation Decision Maker, to change the presentation of the Group’s segment information previously presented in the consolidated financial statements for the six months period ended June 30, 2016. Accordingly, the segment financial information in the consolidated financial statements for the six months period ended June 30, 2016 has been restated to conform with the presentation of segment information in the consolidated financial statements for the six months period ended June 30, 2017.
The Group has five main operating segments, namely mobile, consumer, enterprise, wholesale and international business (“WIB”), and others. The mobile segment provides mobile voice, SMS, value added services and mobile broadband. The consumer segment provides fixed wireline telecommunications services, pay TV, data, internet and other telecommunication services to home customers. The enterprise segment provides end-to-end solution to companies and institutions. The WIB segment provides interconnection services, leased lines, satellite, VSAT, broadband access, information technology services, data and internet services to Other Licensed Operator companies and institutions. Others segment comprises multiple segments that do not meet the disclosure requirements for a reportable segment including building management services and digital services.
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 managed on a group basis and not separately monitored and allocated to operating segments.
102
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
32. OPERATING SEGMENT (continued)
|
201 7 |
|
||||||||||||||
|
Mobile |
|
Consumer |
|
Enterprise |
|
WIB |
|
Others |
|
Total before elimination |
|
Elimination |
|
Total consolidated |
|
Segment results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues |
44,489 |
|
5,308 |
|
10,307 |
|
3,560 |
|
357 |
|
64,021 |
|
- |
|
64,021 |
|
Inter-segment revenues |
1,493 |
|
1,972 |
|
3,729 |
|
8,693 |
|
1,486 |
|
17,373 |
|
(17,373 |
) |
- |
|
Total segment revenues |
45,982 |
|
7,280 |
|
14,036 |
|
12,253 |
|
1,843 |
|
81,394 |
|
(17,373 |
) |
64,021 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External expenses |
(18,888 |
) |
(5, 332 |
) |
(9, 889 |
) |
(4,3 4 5 |
) |
(1,781 |
) |
(40,235 |
) |
- |
|
(40,235 |
) |
Inter-segment expenses |
(6,861 |
) |
(2,3 36 |
) |
(3,0 5 2 |
) |
(5, 100 |
) |
(1 24 |
) |
(17,4 73 |
) |
17,4 73 |
|
- |
|
Total segment expenses |
(25,749 |
) |
(7,6 68 |
) |
(12,9 41 |
) |
(9,4 45 |
) |
(1, 905 |
) |
(57, 708 |
) |
17,4 73 |
|
(40,235 |
|
Segment results |
20,233 |
|
(388 |
) |
1,095 |
|
2,808 |
|
(62 |
) |
23, 686 |
|
100 |
|
23,786 |
|
Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
(7,14 8 |
) |
(2, 144 |
) |
( 1 , 560 |
) |
( 2 , 049 |
) |
( 149 |
) |
( 13 , 050 |
) |
- |
|
( 13 , 050 |
) |
Depreciation and amortization |
(6,3 53 |
) |
(1, 411 |
) |
( 795 |
) |
( 1,002 |
) |
(69 |
) |
(9,630 |
) |
- |
|
(9,630 |
) |
Provision recognized in current period |
(103 |
) |
(203 |
) |
47 |
|
(63 |
) |
(3 |
) |
(325 |
) |
- |
|
(325 |
) |
|
201 6 |
|
||||||||||||||
|
Mobile |
|
Consumer |
|
Enterprise |
|
WIB |
|
Others |
|
Total before elimination |
|
Elimination |
|
Total consolidated |
|
Segment results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenues |
40,163 |
|
4,851 |
|
8,409 |
|
2,856 |
|
175 |
|
56,454 |
|
- |
|
56,454 |
|
Inter-segment revenues |
1,526 |
|
1,987 |
|
2,013 |
|
7,119 |
|
1,078 |
|
13,723 |
|
(13,723 |
) |
- |
|
Total segment revenues |
41,689 |
|
6,838 |
|
10,422 |
|
9,975 |
|
1,253 |
|
70,177 |
|
(13,723 |
) |
56,454 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External expenses |
(18,425 |
) |
(5,4 67 |
) |
(7,2 12 |
) |
(4, 303 |
) |
(1,160 |
) |
(36,567 |
) |
- |
|
(36,567 |
) |
Inter-segment expenses |
(6,002 |
) |
(2,755 |
) |
(1,056 |
) |
(4,427 |
) |
(22 |
) |
(14,262 |
) |
14,262 |
|
- |
|
Total segment expenses |
(24,427 |
) |
(8, 222 |
) |
(8, 268 |
) |
(8,7 30 |
) |
(1,182 |
) |
(50,829 |
) |
14,262 |
|
(36,567 |
) |
Segment results |
17,262 |
|
(1,3 84 |
) |
2, 154 |
|
1,2 45 |
|
71 |
|
19,348 |
|
539 |
|
19,887 |
|
Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
(6,68 2 |
) |
( 3 , 337 |
) |
(1,2 49 |
) |
(2, 193 |
) |
( 271 |
) |
(13,372 |
) |
- |
|
(13, 73 2 |
) |
Depreciation and amortization |
(6,201 |
) |
(1,1 97 |
) |
( 622 |
) |
( 672 |
) |
( 47 |
) |
(8,739 |
) |
- |
|
(8,739 |
) |
Provision recognized in current period |
(90 |
) |
(157 |
) |
146 |
|
(43 |
) |
(5 |
) |
(149 |
) |
- |
|
(149 |
) |
Geographic information:
|
201 7 |
|
201 6 |
|
External revenues |
|
|
|
|
Indonesia |
62,911 |
|
55,515 |
|
Foreign countries |
1,110 |
|
939 |
|
Total |
64,021 |
|
56,454 |
|
The revenue information above is based on the location of the customers.
103
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
32. OPERATING SEGMENT (continued)
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Non-current operating assets |
|
|
|
|
Indonesia |
123, 748 |
|
115,216 |
|
Foreign countries |
699 |
|
2,371 |
|
Total |
124, 447 |
|
117,587 |
|
Non-current operating assets for this purpose consist of property and equipment and intangible assets.
3 3.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 MoCI concerning “Mechanism to Determine Tariff of Basic Telephony Services Connected through Fixed Line Network”. This Decree replaced the previous Decree No. 09/PER/M.KOMINFO/02/2006.
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.
104
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3 3. 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 andNo. 125/BRTI/IV/2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of RIO regarding the interconnection tariff. Based on the letter, ITRB also approved the changes to the SMS interconnection tariff to Rp24 per SMS.
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.
3 4. SIGNIFICANT COMMITMENTS AND AGREEMENTS
a. Capital expenditures
As of June 3 0 , 201 7, capital expenditures committed under the contractual arrangements, principally relating to procurement and installation of data, internet and information technology, cellular, transmission equipment and cable network are as follows:
Currencies |
|
Amounts in foreign currencies (in millions) |
|
Equivalent in Rupiah |
|
Rupiah |
|
- |
|
8,670 |
|
U.S. dollar |
|
240 |
|
3,201 |
|
Euro |
|
0.16 |
|
2 |
|
Total |
|
|
|
11,873 |
|
105
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3 4. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
The above balance includes the following significant agreements:
(i) The Company
Contracting parties |
Initial date of agreement |
Significant provisions of the agreement |
The Company and PT Cisco Technologies Indonesia |
November 14, 2013 |
Procurement and installation agreement of WIFI CISCO |
The Company and PT Industri Telekomunikasi Indonesia |
May 5, 2014 |
Procurement and installation agreement of Outside Plant Optik (OSP-FO) Akses |
The Company and PT Huawei Tech Investment |
October23 , 201 4 |
Procurement and installation of Access Point Indonesia WIFI Platform Huawei |
The Company and PT ZTE Indonesia |
August 28, 2015 |
Procurement and installation agreement of MSAN modernization for acceleration of the disposal of copper wire - Platform ZTE |
The Company and PT D atacomm D iangraha |
November 20, 2015 |
Procurement and installation agreement of Metro Ethernet Platform ALU |
The Company and PT S isindokom L intasbuana |
November 23, 2015 |
Procurement and installation agreement of Ekspan PE-VPN Cisco |
The Company and PT Multireka Prima Utama |
Desember 15, 2015 |
Procurement and installation agreement of Radio IP Long Haul Ceragon |
The Company and PT Sarana Global Indonesia |
December 31, 2015 |
Procurement and installation agreement of Sistem Komunikasi Kabel Laut (“SKKL”) Sibolga-Nias, Batam-Tanjung Balai Karimun, Larantuka-Kabalahi-Atambua |
The Company and Space System/Loral, LLC |
February 29, 2016 |
Procurement of Telkom 4 Satellite System |
The Company and PT Mastersystem Infotama |
October 24, 2016 |
Procurement of E x pand IP Backbone 2016 |
The Company and Space Exploration Technologies Corp |
November 3, 2016 |
Launch services agreement of Telkom 4 Satellite System |
The Company and PT Huawei Tech Investment |
October 10, 2016 |
Procurement and installation agreement of XGPON Platform Huawe |
The Company and PT Lintas Teknologi Indonesia |
November 17, 2016 |
Procurement and installation agreement of DWDM Platform ALCATEL |
The Company and PT Huawei Tech Investment |
November 25, 2016 |
Procurement and installation agreement of DWDM Platform Huawei |
The Company and PT ZTE Indonesia |
December 15, 2016 |
Procurement agreement for STB Platform ZTE |
The Company and PT ZTE Indonesia |
December 15, 2016 |
Procurement agreement for ONT Retail Platform ZTE |
The Company, PT Sigma Cipta Caraka, PT Graha Sarana Duta and PT Huawei Tech Investment |
December 29, 2016 |
Agreement establishing IOC-N |
106
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3 4. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
The above balance includes the following significant agreements:
(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 Agreement |
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 Dimension Data Indonesia and PT Huawei |
February 3, 2010 |
Maintenance and Procurement of Equipment and Related Service Agreement for Next Generation Convergence Core Transport Rollout and Technical Support |
Telkomsel, Amdocs Software Solutions Limited Liability Company and PT Application Solutions |
February 8, 2010 |
Online Charging System (“OCS”) and Service Control Points (“SCP”) System Solution Development agreement |
Telkomsel and PT Application Solutions |
February 8, 2010 |
Technical Support Agreement to provide technical support services for the OCS and SCP |
Telkomsel, 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 |
Telkomsel and PT Huawei |
March 25, 2013 |
Technical Support Agreement for the procurement of Gateway GPRS Support Node (“GGSN”) Service Complex |
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 |
Telkomsel and PT Dimension Data Indonesia |
May 25, 2016 |
Maintenance and Procurement of Equipment and Related Service Agreement for Next Generation Convergence RAN Transport Rollout |
b. Borrowings and other credit facilities
(i) As of June 30, 2017, 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:
107
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3 4. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
b. Borrowings and other credit facilities (continued)
(ii) Telkomsel has US$3 million bond and bank guarantee and standby letter of credit facilit ies with SCB, Jakarta. The facilities expire on July 31, 201 7 . Under these facilities, as of December 31, 2016 , Telkomsel has issued a bank guarantee of Rp 20 billion (equivalent to US$ 1.5 million) for a 3G performance bond (Note 3 4c.i). The bank guarantee is valid until March 24, 2016 .As of the date of approval and authorization for issuance of these consolidated financial statements, the bank guarantee has not been extended.
Telkomsel has a Rp 5 00 billion bank guarantee facility with BRI. The facility will expire on September 25 , 201 7 . Under this facility, as of June 30, 2017, Telkomsel has issued a bank guarantee of Rp 4 72 billion (equivalent to US $ 35 million) as payment for commitment guarantee for annual right of usage fee valid until March 3 1 , 201 8 and Rp20 billion (equivalent to US $ 1.5million) for a 3G performance guarantee valid until April 1, 201 8.
Telkomsel has a Rp150 billion bank guarantee facility with BCA. The facility will expire on April 15, 201 8 .
Telkomsel has also a Rp 100 billion bank guarantee facility with BNI. The facility will expire on December 11, 201 7. Telkomsel uses this facility to replace the time deposit required as guaranty for the USO program amounting to Rp 5 2 billion (Note 3 4 c.iv) .
On January 18, 2017, pursuant to the expiry of the 2015’s overdraft agreement, the Company and Deutsche Bank agreed to extend the agreement for total facilities up to Rp 750 billion which valid until December 31, 2017. The Company used this facility for overdraft and bank guarantees.
(iii) TII has a US$ 15 million bank guarantee from Bank Mandiri. The facility will expire on December 18, 201 7. The outstanding bank guarantee facility as ofJune 30, 2017 amount ing to US$ 10 million (equivalent to Rp134 billion).
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.
108
3 4. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
(i) 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 to fifth year annual frequency usage fees for 2010 to 2014.
Based on Decision letter No. 983 issued in 2015, the MoCI determined that the sixth year (Y6) , 2015 annual frequency usage fee of Telkomsel was Rp 2,398 billion. The fee was paid in December 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, whereby 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.
Conditional Business Transfer Agreement (“CBTA”)
In order to maximize business opportunities within the group synergy, the Company restructured its fixed wireless business unit by transferring its fixed wireless business and subscribers to Telkomsel. On June 27, 2014, the Company signed a CBTA with Telkomsel to transfer such business and subscribers to Telkomsel (Notes 4,9b,31).
Based on Decision Letter No. 934 dated September 26, 2014, the MoCI approved t he 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 since the date 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 at the latest until December 14, 2014.
Based on MoCI Decision letter No. 807/KOMINFO/OJ-SOPI.4/SP.03.03/10/2016 dated October 13, 2016, the migration process of frequency spectrum of 800 MHz has been completed and Telkomsel is able to use the frequency spectrum nationwide.
Accordingly, the Company and Telkomsel agreed that the CBTA has been completed on October 21, 2016.
(i ii) Future m inimum l ease p ayments under o perating l ease
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 20 1 7 and 20 2 6 . Periods maybe extended based on the agreement by both parties.
109
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3 4.SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(i ii) Future m inimum l ease p ayments under o perating l ease (continued)
Future minimum lease payments/receivables under non-cancelable operating lease agreements as of June 3 0 , 2017 are as follows:
|
Total |
|
Less than 1 year |
|
1-5 years |
|
More than 5 years |
|
As lessee |
31,586 |
|
4,111 |
|
13,476 |
|
13,999 |
|
As lessor |
2,240 |
|
893 |
|
1,196 |
|
151 |
|
The future minimum lease payments/receivables include payments from non-lease elements in the arrangement.
In connection with the restructuring of its fixed wireless business (Note 3 3 c.ii), the Company is undertaking a negotiation to early terminate its operating lease arrangements, and has recorded provisions for early termination amounting to Rp 202 billion and Rp 666 billion which are presented as “Other Expense” in 201 6 and 201 5 , respectively. As of June 30 , 201 7 , outstanding provisions for early termination has been fully paid.
The total of minimum lease payment as mentioned above includes lease agreements with telecommunication tower provider services used for the flexi fixed wireless business.
( i v ) USO
The MoCI issued Regulation No. 17 year 2016 dated September 26, 2016 which replaced Decree No. 45 year 2012 and other previous regulations regarding policies underlying the USO program. The regulation requires telecommunications operators in Indonesia to contribute 1.25% of their gross revenues (with due consideration for bad debts and interconnection charges) for USO development. The change in the regulation stipulates, among other things, the exclusion and technical requirements of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged.
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 b y 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. The 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 Sumatra, North Sulawesi, Gorontalo, Central Sulawesi, West Sulawesi, South Sulawesi and South East Sulawesi.
110
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3 4. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
( i v ) USO (continued)
b. The Company (continued)
On December 23, 2010, the Company was selected in a tender by the Government through B PPPTI 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.
In 2015, the program was ceased. On September 8, 2015, the Company filed an arbitration claim to the Indonesia National Board of Arbitration (“BANI”) for the settlement of the outstanding receivables of USO-PLIK and USO-MPLIK. On September 22, 2016, BANI decided that BPPPTI should pay the underpayment to the Company for USO-PLIK and USO-MPLIK project amounting to Rp127 billion and Rp342 billion, respectively.
As of the date of the issuance of these consolidated financial statements, the Company has received payment from BPPPTI amounting to Rp278 billion.
c. Telkomsel
On January 16 and 23, 2009, Telkomsel was selected in a tender by the Government through BTIP to provide and operate 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 obtained local fixed-line licenses and the right to use radio frequency in the 2 , 390 MHz - 2 , 400 MHz bandwidth.
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 - 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” for1, 2 and 3 packages with a total price of Rp261 billion.
On March 31 , 201 4 , the USO program for packages 1,2,3,6 and 7 were ceased. As of September 1 8, 2014, Telkomsel filed an arbitration claim to BANI for the settlement of the outstanding receivable from BPPPTI. On October 23, 2015, BANI decided that Telkomsel should pay the overpayment by BPPPTI for the USO program amounting to Rp94.2 billion. Telkomsel accepted the decision and paid the overpayment in December 2015 . On October 29, 2015, BPPPTI informed that operational license for USO program of “Desa Pinter” could not be issued. In January 2016, Telkomsel filed an arbitration claim to BANI for terminating the USO program.
111
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3 4.SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
( i v ) USO (continued)
b. Telkomsel (continued)
On June 22, 2017, Telkomsel received decision letter of BANI No.792/1/ARB-BANI/2016 requesting BPPPTI to pay compensation to Telkomsel amounting to Rp217 billion.
As of June 30, 2017 and December 31, 2016 , the Company’s and Telkomsel’s net carrying amount of trade receivables for the USO programs which are measured at amortized cost using the effective interest method amounted to Rp198 billion and Rp178 billion, respectively(Note 5).
35. CONTINGENCIES
In the ordinary course of business, the Group has been named as defendant monopolistic practice and unfair business competition and SMS cartel practices.
The Company, Telkomsel and seven other local operators are being investigated byThe Commission for the Supervision of Business Competition ( Komisi Pengawasan Persaingan Usaha or “KPPU”) for allegations of SMS cartel practices. On June 17, 2008, in case No. 26/KPPU-L/2007, the Company, Telkomsel and seven other local operators were investigated. As a result of the investigations, KPPU stated that the Company, Telkomsel and five other local operators had violated Law No. 5 year 1999 article 5 and charged the Company and Telkomsel 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.
Seven other local operators also filed an appeal in various courts. In relation to the case, the KPPU 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 ,the Central Jakarta District Court in case No. 03/KPPU/208/PN.JKT.PST decided that the Company, Telkomsel and seven other local operators won the case.
On July 23, 2015, KPPU filed an appeal to the SC regarding the case of SMS cartel practices. On February 29, 2016, the SC in case No. 9 K/Pdt.Sus-KPPU/2016 decided on the case in favor of KPPU, therefore the Company and Telkomsel have to pay the penalty charged by KPPU amounting to Rp18 billion and Rp25 billion, respectively. Based on management’s estimate of the probable outcomes of this matter, the Group and Telkomsel have recognized provision for losses amounting to Rp18 billion and Rp25 billion, respectively. The Company and Telkomsel have paid the penalty to the treasury fund in January 2017.
112
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
|
June 30, 2017 |
|
||||||
|
U.S. dollar (in millions) |
|
Japanese yen (in millions) |
|
Others* (in millions) |
|
Rupiah equivalent (in billions) |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
191.8 8 |
|
7.11 |
|
13.85 |
|
2,742 |
|
Other current financial assets |
1 5 . 98 |
|
- |
|
- |
|
212 |
|
Trade receivables |
|
|
|
|
|
|
|
|
Related parties |
3. 85 |
|
- |
|
- |
|
5 1 |
|
Third parties |
91 . 05 |
|
- |
|
2.78 |
|
1,2 50 |
|
Other receivables |
0.54 |
|
- |
|
0.10 |
|
9 |
|
Advances and other non-current assets |
4. 37 |
|
- |
|
0.07 |
|
59 |
|
Total assets |
307.67 |
|
7.11 |
|
16.80 |
|
4,323 |
|
Liabilities |
|
|
|
|
|
|
|
|
Trade payables |
|
|
|
|
|
|
|
|
Related parties |
(0. 07 |
) |
- |
|
- |
|
( 1 |
) |
Third parties |
( 105.72 |
) |
(7.09 |
) |
(3. 90 |
) |
( 1,461 |
) |
Other payables |
(6.57 |
) |
- |
|
(0.70 |
) |
( 97 |
) |
Accrued expenses |
( 38 . 18 |
) |
(19.69 |
) |
(0. 32 |
) |
( 516 |
) |
Current maturities of long-term liabilities |
( 10.65 |
) |
(767.90 |
) |
- |
|
( 233 |
) |
Long-term liabilities - net of current maturities |
( 70.49 |
) |
(4,991.33 |
) |
- |
|
( 1,538 |
) |
Total liabilities |
( 2 31.68 |
) |
( 5,786.01 |
) |
( 4.92 |
) |
(3,846 |
) |
Assets ( liabilities ) - net |
75.99 |
|
( 5,778 . 90 |
) |
11.88 |
|
477 |
|
|
December 31, 2016 |
|
||||||
|
U.S. dollar (in millions) |
|
Japanese yen (in millions) |
|
Others* (in millions) |
|
Rupiah equivalent (in billions) |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
204.34 |
|
5.99 |
|
20.94 |
|
3,03 2 |
|
Other current financial assets |
8.81 |
|
- |
|
0.35 |
|
122 |
|
Trade receivables |
|
|
|
|
|
|
|
|
Related parties |
0 |
|
- |
|
0 |
|
0 |
|
Third parties |
106 . 70 |
|
- |
|
3.88 |
|
1,488 |
|
Other receivables |
0.44 |
|
- |
|
0.10 |
|
7 |
|
Advances and other non-current assets |
4.09 |
|
- |
|
- |
|
5 6 |
|
Total assets |
324.38 |
|
5.99 |
|
25.27 |
|
4,705 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Trade payables |
|
|
|
|
|
|
|
|
Related parties |
(0. 18 |
) |
- |
|
(0.01 |
) |
( 2 |
) |
Third parties |
(1 63 . 09 |
) |
(4.83 |
) |
( 6 . 21 |
) |
( 2 , 246 |
) |
Other payables |
(5. 40 |
) |
- |
|
(1. 18 |
) |
( 88 |
) |
Accrued expenses |
(2 7 . 99 |
) |
(20.96 |
) |
(0.18 |
) |
(3 81 |
) |
Advances from customers and suppliers |
(0.48 |
) |
- |
|
- |
|
( 7 |
) |
Current maturities of long-term liabilities |
(10.88 |
) |
(767.90 |
) |
- |
|
(235 |
) |
Promissory notes |
(0.10 |
) |
- |
|
- |
|
(1 |
) |
Long-term liabilities - net of current maturities |
(64.14 |
) |
(5,375.28 |
) |
- |
|
(1,482 |
) |
Total liabilities |
(272.26 |
) |
(6,168. 97 |
) |
(7.58 |
) |
(4,442 |
) |
Assets (liabilities) - net |
52.12 |
|
(6,162.98 |
) |
17.69 |
|
263 |
|
* 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 June 30, 2017 using the exchange rates on July 26, 2017 the unrealized foreign exchange gain amounted to R p10 billion.
113
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT
1. Fair value of financial assets and financial liabilities
a . Classification
i. Financial asset
|
June 30, 201 7 |
|
December 31, 201 6 |
|
F inancial assets at fair value through profit or loss |
|
|
|
|
Derivative asset – put option |
- |
|
- |
|
Loans and receivables |
|
|
|
|
Cash and cash equivalents |
19,068 |
|
29,767 |
|
Trade and other receivables, net |
11,602 |
|
7,900 |
|
Other current financial assets |
217 |
|
313 |
|
Other non - current assets |
18 2 |
|
21 0 |
|
Available-for- s ale financial assets |
|
|
|
|
Available-for-sale investment |
1,091 |
|
1,158 |
|
Total financial asset |
32,160 |
|
39 , 348 |
|
ii. Financial liabilites
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Financial liabilities measured at amorti z ed cost |
|
|
|
|
Trade and other payables |
12,016 |
|
13,690 |
|
Accrued expenses |
11,668 |
|
11,283 |
|
Interest-bearing l oans and other borrowings |
|
|
|
|
Short-term bank loans |
1,781 |
|
911 |
|
Two-step loans |
1,203 |
|
1,292 |
|
Bonds and notes |
8,982 |
|
9,323 |
|
Long-term bank loans |
17,549 |
|
15,566 |
|
Obligation under finance lease |
3,859 |
|
4,010 |
|
Other borrowings |
1,295 |
|
697 |
|
Total financial liabilities |
58,353 |
|
56,7 7 2 |
|
b. Fair Value
|
|
|
|
|
|
Fair value measurement at reporting date using |
|
||||
June 30, 2017 |
|
Carrying
|
|
Fair Value |
|
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 measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale investment |
|
1,091 |
|
1,091 |
|
1,074 |
|
17 |
|
- |
|
Total |
|
1,091 |
|
1,091 |
|
1,074 |
|
17 |
|
- |
|
Financial liabilities for which fair value s are disclosed |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
Two-step loans |
|
1,203 |
|
1,227 |
|
- |
|
- |
|
1,227 |
|
Bonds and notes |
|
8,982 |
|
9,806 |
|
9,806 |
|
- |
|
- |
|
Long-term bank loans |
|
17,549 |
|
17,502 |
|
- |
|
- |
|
17,502 |
|
Obligation under finance lease |
|
3,859 |
|
3,859 |
|
- |
|
- |
|
3,859 |
|
Other borrowings |
|
1,295 |
|
1,293 |
|
- |
|
- |
|
1,293 |
|
Total |
|
32,888 |
|
33,687 |
|
9,806 |
|
- |
|
23,881 |
|
114
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
1. Fair value of financial assets and financial liabilities (continued)
b. Fair Value (continued)
|
|
|
|
|
|
Fair value measurement at reporting date using |
|
||||
December 31, 2016 |
|
Carrying
|
|
Fair Value |
|
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 measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale investment |
|
1,158 |
|
1,158 |
|
1,058 |
|
100 |
|
- |
|
Total |
|
1,158 |
|
1,158 |
|
1,058 |
|
100 |
|
- |
|
Financial liabilities for which fair value s are disclosed |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
Two-step loans |
|
1,292 |
|
1,312 |
|
- |
|
- |
|
1,312 |
|
Bonds and notes |
|
9,323 |
|
9,684 |
|
9,342 |
|
- |
|
342 |
|
Long-term bank loans |
|
15,566 |
|
15,404 |
|
- |
|
- |
|
15,404 |
|
Obligation under finance lease |
|
4,010 |
|
4,010 |
|
- |
|
- |
|
4,010 |
|
Other borrowings |
|
697 |
|
689 |
|
- |
|
- |
|
689 |
|
Total |
|
30,888 |
|
31,099 |
|
9,342 |
|
- |
|
21,757 |
|
Available-for-sale financial assets primarily consist of mutual funds, and corporate and government bonds. Mutual funds actively traded in an established market are stated at fair value using quoted market price and classified within level 1. 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 represents the Put Option on the 20% remaining ownership in Indonusa which was received as part of the divestment considerations. As the put option is subject to restrictions on redemption (such as transfer restrictions and initial lock-up periods) and observable activity for the investment is limited, this investment is therefore classified within level 3 of the fair value hierarchy.
Reconciliations of the beginning and ending balances for items measured at fair value using significant unobservable inputs (level 3) as of June 30, 2017 and 201 6 are as follows:
|
201 7 |
|
201 6 |
|
Beginning balance |
- |
|
172 |
|
Unrealized loss recognized in the consolidated statements of profit or loss and other comprehensive income |
- |
|
(172 |
) |
Ending balance |
- |
|
- |
|
115
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
1. Fair value of financial assets and financial liabilities (continued)
c. Fair value measurement
Fair value is the amount for which an asset could be exchanged, or a liability settled, between parties 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 and other receivables, other current financial assets, trade and other payables, accrued expenses, and short-term bank loans) and other non-current assets are considered to approximate their carrying amount s as the impact of discounting is not significant ;
(ii) The fair values of long-term financial assets and financial liabilities (other non-current assets (long-term trade 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 mutual funds, c orporate and g overnment bonds. 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 g overnment 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 price
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.
2. Financial risk management
The Group ’s activities expose it to a variety of financial risks such as market risks (including foreign exchange risk, market price risk and interest rate risk), credit risk and liquidity risk. Overall, t he 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 on 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 t he Corporate Finance unit under policies approved by the Board of Directors. The Corporate Finance unit identifies, evaluates and hedges financial risks.
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 y en. The Group ’s exposure s to other foreign exchange rates are not material.
116
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
2. Financial risk management (continued)
a. Foreign exchange risk (continued)
Increasing risks of foreign currency exchange rates on the obligations of t he Group are expected to be partly 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 t he Group ’s financial assets and financial liabilities exposure to foreign currency risk:
|
June 30 , 201 7 |
|
December 31, 201 6 |
|
||||
|
U.S. dollar (in billions) |
|
Japanese yen (in billions) |
|
U.S. dollar (in billions) |
|
Japanese yen (in billions) |
|
Financial assets |
0.3 1 |
|
0.01 |
|
0. 32 |
|
0.01 |
|
Financial liabilities |
(0.23 |
) |
(5.79 |
) |
(0. 27 |
) |
(6. 17 |
) |
Net exposure |
0.08 |
|
(5.78 |
) |
0. 05 |
|
(6. 16 |
) |
Sensitivity analysis
A strengthening of the U .S.dollar and Japanese y en , as indicated below, against the Rupiah at June 30, 2017 would have (decreased)/ increased equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that t he Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant.
|
Equity/ profit ( loss ) |
|
June 30 , 201 7 |
|
|
U.S. dollar (1% strengthening) |
11 |
|
Japanese yen (5% strengthening) |
(35 |
) |
A weakening of the U .S.d ollar and Japanese y en against the rupiah at June 30, 2017 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 cha n ges in debt and equity market prices related to available-for-sale investments carried at fair value. Gain s and losses arising from changes in the fair value of available-for-sale investments are recognized in equity.
The performance of t he Group ’s available-for-sale investments is monitored periodically, together with a regular asses s ment of their relevance to t he Group ’s long - term strategic plans.
As of June 30, 2017 , 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.
c. Interest rate risk
Interest rate fluctuation is monitored to minimize any negative impact to financial p erformance . Borrowings at variable interest rates expose t he Group to interest rate risk (Notes 15 and 16 ). To measure market risk pertaining to fluctuations in interest rates, t he Group primarily use s interest margin and maturity profile of the financial assets and liabilities based on changing schedule of the interest rate.
117
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
2. Financial risk management (continued)
c. Interest rate risk (continued)
At reporting date, the interest rate profile of the Group’s interest-bearing borrowings was as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Fixed rate borrowings |
(16, 080 |
) |
(16,383 |
) |
Variable rate borrowings |
( 18, 589 |
) |
(15,416 |
) |
Sensitivity analysis for variable rate borrowings
A s of June 30, 2017, a decrease (increase) by 25 basis points in interest rates of variable rate borrowings would have increased (decreased) equity and profit or loss by Rp46.5 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:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Cash and cash equivalents |
19,068 |
|
29,767 |
|
Other current financial assets |
1,308 |
|
1,471 |
|
Trade and other receivables |
11,6 0 2 |
|
7,900 |
|
Other non-current assets |
1 82 |
|
21 0 |
|
Total |
32,16 0 |
|
39,3 48 |
|
The Group is exposed to credit risk primarily from cash and cash equivalents and trade and other receivables.
Credit risk from balances with banks and financial institutions is managed by the Group’s Corporate Finance department inaccordance with the Group’s written policy. The Group placed the majority of its cash and cash equivalents in state-owned 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. Therefore, it is intended to minimize financial loss through banks and financial institutions’ potential failure to make payments.
The customer c redit risk is managed by continuous monitoring of outstanding balances and collection . Trade and other receivables do not have any major concentration of risk whereas no customer r eceivable balance exceeds 6 % of trade receivables as of June 3 0 , 2017 .
M anagement is confident in its ability to continue to control and sustain minimal exposure to thecustomer credit risk given that t he Group ha s recogniz ed sufficient provision for impairment of receivables to cover incurred loss arising from uncollectible receivables based on existing historical data on credit losses .
118
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
2. Financial risk management (continued)
e. Liquidity risk
L iquidity risk arises in situations where t he Group ha s difficulties in fulfilling financial liabilities when they become due.
Prudent liquidity risk management implies maintaining sufficient cash in order to meet t he Group’ s financial obligations . The Group continuously perform s 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 based on contractual undiscounted payments:
|
Carrying amount |
|
Contractual cash flows |
|
201 7 |
|
201 8 |
|
201 9 |
|
2020 |
|
2021 and thereafter |
|
June 3 0 , 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables |
12,016 |
|
(12,016 |
) |
(12,016 |
) |
- |
|
- |
|
- |
|
- |
|
Accrued expenses |
11,668 |
|
(11,668 |
) |
(11,668 |
) |
- |
|
- |
|
- |
|
- |
|
Interest bearing loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans |
19,33 0 |
|
(24,0 19 |
) |
(7,8 81 |
) |
(2,3 13 |
) |
(4,51 3 |
) |
(3,33 8 |
) |
(5,97 4 |
) |
Bonds and notes |
8,982 |
|
(18,743 |
) |
(929 |
) |
(465 |
) |
(929 |
) |
(2,873 |
) |
(13,547 |
) |
Obligations under finance leases |
3,85 9 |
|
(4,8 80 |
) |
(1,006 |
) |
(482 |
) |
(859 |
) |
(80 9 |
) |
(1,72 4 |
) |
Two-step loans |
1,20 3 |
|
(1,373 |
) |
(274 |
) |
(113 |
) |
(220 |
) |
(212 |
) |
(554 |
) |
Other borrowings |
1,29 5 |
|
(1,820 |
) |
(122 |
) |
(159 |
) |
(304 |
) |
(285 |
) |
(950 |
) |
Total |
58,353 |
|
( 74,5 19 |
) |
(33,89 6 |
) |
(3,5 32 |
) |
(6,82 5 |
) |
(7,51 7 |
) |
( 22,74 9 |
) |
|
Carrying amount |
|
Contractual cash flows |
|
201 7 |
|
201 8 |
|
201 9 |
|
2020 |
|
2021 and thereafter |
|
December 3 1 , 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables |
13,690 |
|
(13,690 |
) |
(13,690 |
) |
- |
|
- |
|
- |
|
- |
|
Accrued expenses |
11, 283 |
|
(11, 283 |
) |
(11, 283 |
) |
- |
|
- |
|
- |
|
- |
|
Interest bearing loans and other borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans |
16,477 |
|
(20,421 |
) |
(5,875 |
) |
(5,635 |
) |
(2,883 |
) |
(2,565 |
) |
(3,463 |
) |
Bonds and notes |
9,323 |
|
(19,670 |
) |
(969 |
) |
(967 |
) |
(1,187 |
) |
(3,000 |
) |
(13,547 |
) |
Obligations under finance leases |
4,010 |
|
(5,160 |
) |
(987 |
) |
(892 |
) |
(816 |
) |
(771 |
) |
(1,694 |
) |
Two-step loans |
1,292 |
|
(1,487 |
) |
(279 |
) |
(244 |
) |
(216 |
) |
(209 |
) |
(539 |
) |
Other borrowings |
697 |
|
(1,007 |
) |
(60 |
) |
(118 |
) |
(164 |
) |
(153 |
) |
(512 |
) |
Total |
56,7 72 |
|
( 72 , 7 1 8 |
) |
(33,143 |
) |
(7,856 |
) |
(5,266 |
) |
(6,698 |
) |
(19,755 |
) |
The difference between the carrying amount and the contractual cash flows is interest value. The interest value of variable-rate borrowings are determined based on the interest rates effective as of reporting date.
119
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
38. CAPITAL MANAGEMENT
The capital structure of the Group is as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
||||
|
Amount |
|
Portion |
|
Amount |
|
Portion |
|
Short-term debts |
1,781 |
|
1.49% |
|
911 |
|
0.78% |
|
Long-term debts |
32,88 8 |
|
27. 51 % |
|
30,888 |
|
26.59% |
|
Total debts |
34,66 9 |
|
2 9 . 00 % |
|
31,799 |
|
27.37% |
|
Equity attributable to owners of the parent company |
84, 867 |
|
71.0 0 % |
|
84,384 |
|
72.63% |
|
Total |
119, 536 |
|
100% |
|
116,183 |
|
100% |
|
The Group’s objectives when managing capital are to safeguard the Group’s 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’s 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 borrowing s arrangements and that such ratio is comparable or better than th at of regional area entities in the telecommunications industry.
The Group ’s debt-to-equity ratio as of June 30, 2017 and December 31, 2016 is as follows:
|
June 30, 201 7 |
|
December 31, 201 6 |
|
Total interest-bearing debts |
34,669 |
|
31,799 |
|
Less : cash and cash equivalents |
(19, 068 |
) |
(29,767 |
) |
Net debts |
15, 601 |
|
2,032 |
|
Total equity attributable to owners of the parent company |
84, 867 |
|
84,384 |
|
Net debt-to-equity ratio |
18.38% |
|
2.41% |
|
As stated in Notes 1 6 , the Group is required to maintain a certain debt-to-equity ratio and debt service coverage ratio by the lenders. For t he six months period ended June 30, 2017 and for t he year ended December 31, 2016, the Group has complied with the externally imposed capital requirements.
120
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk ANDSUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and For the Six Months Period Then Ended (unaudited)
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SUPPLEMENTAL CASH FLOWS INFORMATION
The non-cash investing activities for the six months period ended June 30, 2017 and 201 6 are as follows:
|
201 7 |
|
201 6 |
|
Acquisition of property and equipment: |
|
|
|
|
Credited to trade payables |
5 , 185 |
|
5,151 |
|
Credited to obligations under finance leases |
197 |
|
290 |
|
Interest capitalization |
70 |
|
- |
|
Acquisition of intangible assets: |
|
|
|
|
Credited to trade payables |
4 |
|
- |
|
40. SUBSEQUENT EVENTS
a. On July 18, 2017, DMT entered into a credit agreement with DBS amounting to Rp100 billion.
b. On July 25, 2017, Telkomsel has settled all bank loans to Bank BNI, Bank Mandiri and Bank of Tokyo Mitsubishi UFJamounted to Rp1,000 billion.
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