PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 54
27. COMMITMENTS
a. Capital commitments
The Company has made various purchase commitments related to the expansion of the network against which the Company has made downpayments, as follows:
31032010 In million USD
Equivalent billion Rp
Purchase commitments 197
1,791 Downpayments
1 8
196 1,783
b. Operating lease commitments
In 1999 the Company entered into an office rental agreement denominated in Rupiah with PT Caraka Citra Sekar Lestari third party for a term of 10 ten years. On 23 March 2007, the
Company amended the office rental agreement until 31 October 2020, with a total commitment as follows:
31032010
Payable within 1 one year 18,850
Payable within 2 two years and 5 five years 98,683
Payable more than 5 five years 93,139
210,672 The rental expenses related to this commitment for the years ended 31 December 2007, 2008
and 2009; and three-month periods ended 31 March 2009 and 2010 amounted to Rp 10,956, Rp 11,088 and Rp 11,088; and Rp 2,772 and Rp 2,772, respectively.
On 6 September 2008, the Company entered into an office rental agreement denominated in Rupiah with PT Wiratara Prima third party for a term of 6 six years, with a total commitment as
follows:
Year 1-3 = Rp 10,049 per year
Year 4-6 = based on a market value with a minimum increase of 10 and maximum 15
from prior rent fee. Rental expenses related to this commitment for the years ended 31 December 2007, 2008 and
2009; and the three-month periods ended 31 March 2009 and 2010 amounting to Rp 2,092, Rp 10,199 and Rp 9,390; Rp 2,512 and Rp 2,183, respectively.
c. 3G annual fees commitments
The Company has committed to pay annual fees within 10 ten years, as long as the Company holds the 3G license. The amount of the annual payment is based on the scheme of payment set
out in Regulation No. 07PERM.KOMINFO22006 of the Minister of Communication and Information refer to Note 1d. No penalty will be imposed in the event of the Company returning
the license.
PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 55
28. DERIVATIVE INSTRUMENTS
31122007 31122008
31122009 31032009
3103 2010
Derivative receivables: Forward Foreign Currency Contracts
105,584 758,286
110,246 486,245
50,125 Cross Currency Swap Contracts
20,139 200,716
18,049 227,212
- Interest Rate Swap Contracts
- -
2,010 -
- 125,723
959,002 130,305
713,457 50,125
Less: current portion -
333,324 18,049
121,489 -
125,723 625,678
112,256 591,968
50,125 Derivative payables:
Forward Foreign Currency Contracts -
- 134,501
- 129,352
Cross Currency Swap Contracts -
- 60,810
- 82,821
Interest Rate Swap Contracts -
36,828 35,440
68,508 45,700
- 36,828
230,751 68,508
257,873 Less: current portion
- -
166,272 3,011
151,062 -
36,828 64,479
65,497 106,811
The fair values on forward foreign currency contracts, cross currency swap contracts, and interest rate swap contracts have been calculated using rates quoted by the Company’s bankers to terminate the
contracts at the balance sheet date.
The net changes in fair value and settlement of derivates instruments are recorded as foreign exchange gainloss in the consolidated statements of income. For the period ended 31 March 2010,
the Company recorded foreign exchange loss amounting Rp 150,919 in the consolidated statements of income.
Other information relating to the derivative assets and liabilities as at 31 March 2010, as follows : Forward Foreign Currency Contracts
Notional Amount
Strike rate Premium
Counterparties USD
full amount Period
per annum
PT Bank DBS Indonesia 6,000,000
1 USD = Rp 12,150 - 13 April 2009 - 1 April 2010
- Rp 12,417
The Royal Bank of Scotland 5,500,000
1 USD = Rp 10,578 - 13 April 2009 - 15 July 2010
- Rp 12,265
Standard Chartered Bank 165,000,000
1 USD = Rp 9,000 - 17 July 2009 - 29 September
2.25-5.26 Rp 11,000
2015 J.P.Morgan Securities
50,000,000 1 USD = Rp 9,000
31 December 2009 - 3.45
S.E.A. Ltd. 29 September 2015
The premiums on the forward foreign currency contracts will be paid semi-annually.