PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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13. PROPERTY, PLANT AND EQUIPMENT UNDER REVENUE-SHARING ARRANGEMENTS
continued In accordance with revenue-sharing arrangements agreements, ownership rights to the property, plant
and equipment under revenue-sharing arrangements are legally retained by the investors until the end of the revenue-sharing period.
The unearned income on revenue-sharing arrangements is as follows:
2005 2006
Gross amount 907,686
1,013,683 Accumulated amortization:
Beginning balance 833,365
582,155 Addition Note 35
48,468 64,198
Deduction 295,808
2,103 Ending balance
586,025 644,250
Net 321,661
369,433
14. ADVANCES AND OTHER NON-CURRENT ASSETS
Advances and other non-current assets consist of:
2005 2006
Advances for purchase of property, plant and equipment 808,075
338,536 Deferred landrights charges
88,654 82,550
Security deposits 28,365
31,208 Restricted cash
160,022 1,511
Others 48,257
22,821 Total
1,133,373 476,626
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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15. GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill and other intangible assets for the six months period ended June 30, 2005 and 2006 are as follows:
Other Intangible
Goodwill Assets
Total
Gross carrying amount as of June 30, 2005 106,348
7,151,111 7,257,459
Accumulated amortization: Balance as of December 31, 2004
76,221 1,769,813
1,846,034 Amortization expense for 6 months period in 2005
10,634 448,442
459,076 Balance as of June 30, 2005
86,855 2,218,255
2,305,110 Net book value
19,493 4,932,856
4,952,349 Weighted-average amortization period
5 years 7.97 years
Other Intangible
Goodwill Assets
Total
Gross carrying amount: Balance as of December 31, 2005
106,348 7,151,111
7,257,459 Addition - License for 3G Telkomsel
- 436,000
436,000 Balance as of June 30, 2006
106,348 7,587,111
7,693,459 Accumulated amortization:
Balance as of December 31, 2005 97,491
2,666,696 2,764,187
Amortization expense for 6 months period in 2006 8,857
466,609 475,466
Balance as of June 30, 2006 106,348
3,133,305 3,239,653
Net book value -
4,453,806 4,453,806
Weighted-average amortization period 5 years
8.09 years Other intangible assets resulted from the acquisitions of Dayamitra, Pramindo, AWI and KSO IV, and
represent the rights to operate the business in the KSO areas Note 5. Goodwill resulted from the acquisition of GSD Note 1c.
The estimated annual amortization expense relating to goodwill for the year ending December 31, 2006 is Rp8.857 million. The estimated annual amortization expense relating to other intangible assets for
each of the next five years beginning from January 1, 2006 is Rp673,171 million per year. On February 8, 2006, Telkomsel has obtained a 3-G mobile cellular operating license for 1940-1945
MHz and 2130-2135 MHz frequency bandwidth for a 10-year period, which is extendable subject to evaluation. The upfront fee for the 3-G license amounted to Rp436,000 million was recognized as
other intangible asset and amortized over the useful life of the license 10 years.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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16. ESCROW ACCOUNTS
