PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
109
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
c.
Others continued
v USO continued a. Company
On March 12, 2010, the Company was selected in a tender by the Government through BTIP to provide internet access service centers for USO sub-districts for a total amount of
Rp322 billion, covering Nanggroe Aceh Darussalam, Sumatera Utara, Sulawesi Utara, Gorontalo, Sulawesi Tengah, Sulawesi Barat, Sulawesi Selatan and Sulawesi Tenggara.
On December 23, 2010, the Company was selected in a tender by the Government through BTIP to provide mobile internet access service centers for USO sub-districts for a
total amount of Rp528 billion, covering Jambi, Riau, Kepulauan Riau, Sulawesi Utara, Sulawesi Tengah, Gorontalo, Sulawesi Barat, Sulawesi Tenggara, Kalimantan Tengah,
Sulawesi Selatan, Papua and Irian Jaya Barat.
b. Telkomsel On January 16 and 23, 2009, Telkomsel was selected in a tender by the Government
through BTIP to provide telecommunication access and services in rural areas USO Program for a total amount of Rp1.66 trillion, covering all Indonesian territories
except Sulawesi, Maluku and Papua. Telkomsel will obtain local fixed-line licenses and the right to use radio frequency in the 2390 MHz - 2400 MHz bandwith.
Subsequently, in 2010 and 2011, the agreements with BTIP were amended, which amendments cover, among other things, changing the price to Rp1.76 trillion and
changing the term of payment from quarterly to monthly or quarterly. In January 2010, the MoCI granted Telkomsel operating licenses to provide local fixed-
line services under the USO program. On December 27, 2011, Telkomsel on behalf of Konsorsium Telkomsel, a consortium
which was established with Dayamitra on December 9, 2011 was selected by BPPPTI as a provider of the USO Program in the border areas for all packages package 1 to
package 13 with a total price of Rp830 billion. On such date, Telkomsel was also selected by BPPPTI as a provider of the USO Program upgrading of “Desa Pinter” or
“Desa Punya Internet” for 1, 2 and 3 packages with a total price of Rp261 billion.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
110
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
c.
Others continued
v USO continued For the years ended December 31, 2013 and 2012, the Company and Telkomsel recognized
the following amounts:
2013 2012
Revenues Construction
67 245
Operation of telecommunication service centre
508 353
Profits Construction
11 6
Operation of telecommunication service centre
150 83
As of December 31, 2013, the Company’s and Telkomsel’s trade receivables from the USO programs which are measured at amortized cost using the effective interest rate method
amount to Rp654 billion Notes 6 and 12. 42. CONTINGENCIES
In the ordinary course of business, the Company and subsidiaries have been named as defendants in various legal actions in relation with land disputes, monopolistic practice and unfair business
competition and SMS cartel practices. Based on managements estimate of the probable outcomes of these matters, the Company and subsidiaries have recognized provision for losses amounting to
Rp49 billion as of December 31, 2013.
a.
The Company, Telkomsel and seven other local operators are being investigated by The Commission for the Supervision of Business Competition “Komisi Pengawasan Persaingan
Usaha” or “KPPU” for allegations of SMS cartel practices. As a result of the investigations on June 17, 2008, KPPU found that the Company, Telkomsel and certain other local operators had
violated Law No. 5 year 1999 article 5 and charged the Company and Telkomsel penalty in the amounts of Rp18 billion and Rp25 billion, respectively.
Management believes that there are no such cartel practices that led to a breach of prevailing regulations. Accordingly, the Company and Telkomsel filed an appeal with the Bandung District
Court and South Jakarta District Court on July 14, 2008 and July 11, 2008, respectively.
