Profit for the Year Attributable to Owners of the Parent Company
B. External Liquidity Sources Our primary external sources of liquidity are short and
long-term bank loans, two-step loans, bonds and notes payable. In 2014 we used external liquidity bank loans of Rp6,626 billion and other borrowings of Rp3,580 billion.C. Outstanding Liquidity Sources We had undrawn loan facilities which include the following
sources of unused liquidity: - CIMB Niaga loan facility in the amount of Rp820 billion; - BNI loan facility in the amount of Rp234 billion; - BRI loan facility in the amount of Rp6 billion; - Danamon Bank loan facility in the amount of Rp20 billion; - Bank Ekonomi Raharja loan facility in the amount of Rp70 billion; - Syndicated loan facility of BNI, BRI and Bank Mandiri in the amount of Rp103 million. WORKING CAPITAL Net working capital, calculated as the difference between current assets and current liabilities, amounted to Rp4,638 billion as of December 31, 2013 and Rp1,976 billion US160 million as of December 31, 2014. The decrease in net working capital was primarily due to: - A decrease of Rp4,075 billion in other current financial assets; - A decrease of Rp48 billion in asset held for sale; - A decrease of Rp35 billion in inventories – net of provision for obsolescene; and - A decrease of Rp12 billion in other receivable - net of provision for impairment of receivable. This was partially offset by: - An increase of Rp1,378 billion in short-term bank loan; - An increase of Rp806 billion in current marturities of long-term liabilities; - An increase of Rp473 billion in unearned income; and - An increase of Rp286 billion in trade payable – third parties. We believe that our working capital is sufficient for our present requirements. We expect that our working capital will continue to be addressed by various funding sources, including cash from operating activities and bank loans. SOLVENCY Our solvency or our ability to meet our short-term and long-term obligations highly influenced by our source of liquidity. Refer to explanation on “Liquidity”. A. Current Liabilities Our ability to pay our current liabilities is indicated by the ratios on the table below: Ratios 2014 2013 2012 Current ratio 106.2 116.3 116.0 Quick ratio 104.7 114.5 113.6 Cash ratio 64.4 75.8 74.4 B. Non-Current Liabilities Our ability to pay our debt is indicated by the ratios on the table below Ratios 2014 2013 2012 Debt to equity ratio 34.6 33.5 37.4 Debt to EBITDA 50.4 46.4 48.0 Times interest earned ratio 25.6 times 29.0 times 19.5 times For detail discussion about our debt, see Notes 17-21 to our Consolidated Financial Statements. 133 2014 Annual Report PT Telkom Indonesia Tbk Persero RECEIVABLE COLLECTIBILITY Our receivable collectability, indicated by the ratios average collection period that show an average of days that we take to collect our receivable and receivable turnover that show how many times in average the funds invested in receivable are turned in one year. Our average collection period were 25.4 days in 2014 and 24.7 days in 2013. Our receivable turnover for 2014 and 2013 were 14.4 and 14.8. We have made provision for impairment of receivables based on the collectability amount of the historical impairment rates and individual account of its customers’ credit quality and credit history, amounted to Rp3.096 in 2014 and Rp2.872 billion in 2013. As of December 31, 2014 and 2013, the carrying amount of our receivables considered past due but not impaired amounted to Rp3.355 billion and Rp2.418 billion, respectively. We concluded that past due but not impaired receivables, along with receivables that are neither past due nor impaired, are due from customers with good debt history and are expected to be recoverable. For detail discussion about our receivable, see Note 6 to our Consolidated Financial Statements. CAPITAL STRUCTURE Our capital structure as of December 31, 2014 is described as follows: Amount Portion Rp billion Short Term 1,810 1.99 Long Term 21,642 23.76 Debt 23,452 25.75 Equity 67,807 74.25 Total Invested Capital 91,259 100 We take a qualitative approach towards our capital structure and debt levels. Under our syndicated loan agreement with BNI and BRI, we are required to maintain a debt to equity ratio of not more than 2.0 and debt service coverage ratio of more than 1.25. As of December 31, 2014, our debt to equity ratio was 34.6 and our debt service coverage ratio was 4.8 times, indicating our strong ability to meet our debt obligations. Our debt levels are primarily driven by our plans to develop our existing and new strategic businesses. In determining our optimum debt levels, we also consider our debt ratios with reference to regional peers in the telecommunications industry. For detail discussion about management policy on capital structure, see Note 45 to our Consolidated Financial Statements. CAPITAL ExPENDITURES In 2014, we incurred capital expenditures of Rp24,661 billion US1,991 million. Our capital expenditures are grouped into the following categories for planning purposes: Broadband services, which consist of broadband, IT, application and content and service node; Network infrastructure, which consists of core transmission network, metro-ethernet and Regional Metro Junction “RMJ”, IP backbone and satellite; Optimizing legacy, for fixed lines; and Capex supports. 134 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE SParts
» Telkomsel Double Digit Revenue Growth Indonesia Digital Network IDN 2015 International Expansion
» Parenting Strategy : Strategic guidance
» Shareholders with Ownership More Than 5 MainControlling Shareholder
» Ownership of Stocks by Directors and Commissioners
» Shareholders with Less than 5 Ownership
» Proportion of Common Stock Held in Indonesia and Abroad List of the 20 Biggest Public Shareholders
» Employee Stock Ownership Program
» Chronology of Bonds Purchases of Equity Securities by The Issuer and Affiliated Purchasers
» Sekretariat of President AR TELKOM 2014 ENG
» Director Human Capital AR TELKOM 2014 ENG
» Director of Consumer Service
» Directorate of Wholesale International Business Service
» Director of Innovations AR TELKOM 2014 ENG
» Direktur Enterprise Business AR TELKOM 2014 ENG
» Director of Finance AR TELKOM 2014 ENG
» Department of Corporate AR TELKOM 2014 ENG
» Internal Auditor AR TELKOM 2014 ENG
» Department of Project AR TELKOM 2014 ENG
» Finance Billing Collection Center FBCC
» Human Capital Center AR TELKOM 2014 ENG
» Telkom Corporate University Center
» Supply Center AR TELKOM 2014 ENG
» Innovation Design Center IDeC
» Community Development Center CDC
» Human Resource Assessment Service Assesment Center
» ITSS Division AR TELKOM 2014 ENG
» Enterprise Service Division AR TELKOM 2014 ENG
» Business Service Division AR TELKOM 2014 ENG
» Wholesale Service Division AR TELKOM 2014 ENG
» Broadband Division AR TELKOM 2014 ENG
» Wireless Broadband Division AR TELKOM 2014 ENG
» Network of Broadband Division
» Witel of Central Java of Eastern North
» Witel of Southern Central Java
» Witel Yogyakarta AR TELKOM 2014 ENG
» Witel of Central Java of Eastern South
» Regional Division V East Java
» Witel of East Java of Central East
» Witel of East Java of Southern East
» Witel of Central East Borneo
» Witel of Northern East Borneo
» Witel of Southern East Borneo
» Regional Division VII Eastern Indonesia Area
» Witel of SouthSulawesi AR TELKOM 2014 ENG
» Witel of Western South Sulawesi
» Witel of North Sulawesi North Maluku
» Witel of Maluku AR TELKOM 2014 ENG
» Witel of Papua AR TELKOM 2014 ENG
» PT Telekomunikasi Selular Telkomsel
» PT Telekomunikasi Indonesia Internasional Telin
» Telin Singapore AR TELKOM 2014 ENG
» Telin Hong Kong AR TELKOM 2014 ENG
» Telin Timor-Leste AR TELKOM 2014 ENG
» Telkom Australia AR TELKOM 2014 ENG
» Telkom Macau AR TELKOM 2014 ENG
» Telkom Taiwan AR TELKOM 2014 ENG
» Telin Malaysia AR TELKOM 2014 ENG
» Telkom USA AR TELKOM 2014 ENG
» Telin Branch Office in Myanmar
» PT Multimedia Nusantara Metra
» PT Infrastruktur Telekomunikasi Indonesia
» PT Dayamitra Telekomunikasi Mitratel
» PT Infomedia Nusantara AR TELKOM 2014 ENG
» PT MD Media AR TELKOM 2014 ENG
» PT Sigma Cipta Caraka Telkom Sigma
» PT Administrasi Medika AdMedika
» PT Finnet Indonesia AR TELKOM 2014 ENG
» PT Melon Indonesia AR TELKOM 2014 ENG
» Telkom Property PT Graha Sarana Duta
» PT Telkom Akses AR TELKOM 2014 ENG
» Fixed Wireline Services AR TELKOM 2014 ENG
» Fixed Broadband AR TELKOM 2014 ENG
» Cellular Services AR TELKOM 2014 ENG
» Fixed Wireless Services AR TELKOM 2014 ENG
» Interconnection Services AR TELKOM 2014 ENG
» Network Services AR TELKOM 2014 ENG
» Satellite AR TELKOM 2014 ENG
» Platform Services, which includes Managed
» Digital Advertising is a commercial service for the
» Contact centers AR TELKOM 2014 ENG
» Partnership Stores AR TELKOM 2014 ENG
» Authorized dealers and retail outlets
» Account Management Teams AR TELKOM 2014 ENG
» Telkom Solution Houses AR TELKOM 2014 ENG
» SME Centers AR TELKOM 2014 ENG
» Social Media AR TELKOM 2014 ENG
» Liabilities dan Equity a. Current Liabilities
» Revenues Total revenues increased by Rp6,729 billion, or 8.1, from
» Expenses Total expenses increased by Rp3,693 billion, or 6.4,
» Net Income per Share Net income per share increased by Rp2,4, or 1.6, from
» Revenues Total revenues increased by Rp5,824 billion, or 7.5,
» Expenses Total expenses increased by Rp3,695 billion, or 6.8,
» Income Tax Expense Income tax expense decreased by Rp993 billion, or
» Profit for the Year Attributable to Owners of the Parent Company
» Cash Flows from Operating Activities Net cash provided by operating activities in 2014 was
» Cash Flows from Investing Activities Net cash flows used in investing activities in 2014 was
» Cash Flows from Financing Activities Net cash flows used in financing activities was Rp10,083
» Cash Flows from Operating Activities Net cash provided by operating activities in 2013 was
» Cash Flows from Investing Activities Net cash flows used in investing activities in 2013 was
» Internal Liquidity Sources To fulfill our obligations, we rely primarily on our internal
» External Liquidity Sources Our primary external sources of liquidity are short and
» Outstanding Liquidity Sources We had undrawn loan facilities which include the following
» Purpose of the Commitment As of December 31, 2014, we had material commitments
» Source of Funds We have historically funded our capital expenditures
» Denomination of Currency As of December 31, 2014, details of material commitment
» Planned Actions to Mitigate Foreign Exchange Risks
» Expansion - On January 16, 2014, we establish 100 ownership
» Acquisition - On September 25, 2014, Telkom Australia Telin through
» Employee benefits Under PSAK, the actuarial gains or losses are recognized
» Land rights Under PSAK, land rights are recorded as part of property
» Related party transactions Under Bapepam - LK OJK Regulation No. VIII.G.7
» Indonesian Taxation DebtCapital Restructure
» Dividends Dividends declared by us out of retained earnings and
» Capital Gains The sale or transfer of common stock through the IDX
» Stamp Duty Stock transactions in Indonesia are subject to stamp
» Threshold Passive Foreign Investment Company “PFIC” Classification Matters
» Dividends Any cash distributions paid by us out of earnings and
» PFIC Considerations If we were to be classified as a PFIC in any taxable year,
» Backup Withholding Tax and Information Reporting Requirements
» Telecommunications Law AR TELKOM 2014 ENG
» Telecommunications Regulators AR TELKOM 2014 ENG
» C l a ss i f i c at i o n a n d L i ce n s i n g o f Telecommunications Providers
» Introduction of Competition in the Indonesian Telecommunications Industry
» DLD Services AR TELKOM 2014 ENG
» IDD Services AR TELKOM 2014 ENG
» Limited Mobility Wireless Services
» Interconnection AR TELKOM 2014 ENG
» Consumer Protection AR TELKOM 2014 ENG
» Telecommunication Regulatory Charges AR TELKOM 2014 ENG
» Telecommunications Towers AR TELKOM 2014 ENG
» Telkom’s Shareholders AR TELKOM 2014 ENG
» Realization of General Meeting of Shareholders GMS
» President Director as CEO of Telkom Group
» Director of Network, IT Solution “NITS”
» Director of Human Capital Management “HCM”
» Director of Wholesale International Service “WINS”
» Nomination and Remuneration Committee The composition of the Nomination and Remuneration
» Audit Committee The composition of the Audit Committee as determined
» The Planning and Risk Evaluation and Monitoring Committee “KEMPR”
» Nomination and Remuneration Committee Duties and responsibilities of the Nomination and
» The Audit Committee Based on the Audit Committee Charter, in general, the
» Report of the Nomination and Remuneration Committee in 2014
» Report of the Audit Committee in 2014
» Corporate Strategic Scenario “CSS” KEMPR has monitored the implementation of RJPP CSS
» Annual Business Budget Plan In carrying RKAP 2014, the Board of Commissioners has
» Enterprise Risk Management “Enterprise Risk Management”
» Measures of Directors that require approval from the Board of Commissioners
» Work Meeting KEMPR In 2014 KEMPR held 10 committee meetings.
» Bayu Katon Management Report On Internal Control Over Financial Reporting
» Efforts to provide value added to the management of the company
» Enterprise Risk Management ERM Telkom realizes that risk management is an integral part
» Political and Social Risks Current political and social events in Indonesia may
» Macro Economic Risks AR TELKOM 2014 ENG
» Disaster Risks AR TELKOM 2014 ENG
» Risks Related to Our Business
» Operational Risks A material failure in the continuing operations of our
» Financial Risks We are exposed to interest rate risk
» Legal and Compliance Risks If we are found liable for price fixing by the Indonesian
» Regulation Risks We operate in a legal and regulatory environment that
» Risks Related to Our Fixed Telecommunication Business
» Competition Risks Related to Our Cellular Business Telkomsel
» QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
» Foreign Exchange Controls Indonesia operates a liberal foreign exchange system
» Exchange Rate Risk We are exposed to foreign exchange risk on sales,
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