PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
44
7. INVENTORIES continued
Movements in the provisionfor obsolescence are as follows:
March 31, December 31,
2014 2013
Beginning balance 22
148 Divestment
- 1
Provision reversalrecognized during the year -
29 Reclassification
- 96
Ending balance 22
22
The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses Note 28 as of March 31, 2014 and December 31, 2013
amounted to Rp213 billion and Rp752 billion, respectively. Management believes that the provision is adequate to cover losses from declines in inventory value
due to obsolescence. Certain inventories of the Company’s subsidiaries amounting to Rp35 billion have been pledged as
collateral under lending agreements Notes 17 and 21. As of March 31, 2014 and December 31, 2013, modules and components held by the Company and
subsidiaries have been insured against fire, theft, and other specific risks with book value amounting to Rp64 billion and Rp280 billion, respectively. Modules are recorded as part of property and
equipment.Total sum insured as of March 31, 2014 and December 31, 2013 amounted to Rp251 billion and Rp261 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of certain inventories which happens to the Company and subsidiaries.
8. ADVANCES AND PREPAID EXPENSES
March 31, December 31,
2014 2013
Frequency license Notes 41c.i and 41c.ii 2,048
2,330 Prepaid rental
616 744
Salaries 449
209 Advances
328 297
Deferred expense 97
124 Insurance
83 84
Others each below Rp50 billion 241
159
Total 3,862
3,947
Refer to Note 37 for details of related party transactions.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
45
9. ASSET HELD FOR SALE
This account represents the carrying amount of Telkomsel’s equipment to be exchanged with equipment of Nokia Siemens Network Oy “NSN Oy” and PT Huawei Tech Investment
“PT Huawei”. The equipment will be used as part of the settlement for the exchanges of equipment from these companies.
In 2014, Telkomsel’s equipment with net carrying amount of Rp88 billion is reclassified to asset held for sale Note 11c.vi.
Asset held for sale is presented under personal segment Note 38.
10. LONG-TERM INVESTMENTS
March 31, 2014 Share of
net loss Percentage
profit of of
Beginning associated Translation Ending
ownership balance
company adjustment balance
Long-term investments
in associated companies:
Indonusa
a
20.00 189
- -
189 PT Melon Indonesia
“Melon”
b
51.00 39
1 -
40 ILCS
c
49.00 37
3 -
34 Telin Malaysia
d
49.00 18
5 1
12 CSM
e
25.00 -
- -
PSN
f
22.38 -
- -
- Sub-total
283 7
1 275
Other long-term investments 21
- -
21
Total long-term investments 304
7 1
296 March 31, 2014
Assets Liabilities
Revenue Gain Loss
Long-term investments in associated companies:
Indonusa
a
376 297
93 4
Melon
b
122 44
28 2
ILCS
c
96 27
28 6
Telin Malaysia
d
25 1
4 10
CSM
e
1,273 1,387
77 45
PSN
f
817 2,148
116 14
Total 2,709
3,904 346
69
