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
43
6. TRADE RECEIVABLES continued
c. By currency continued ii Third parties
March 31, December 31,
2014 2013
Rupiah 7,447
6,699 U.S.dollar
766 806
Euro 2
1 Hong Kong dollar
1 1
Total 8,216
7,507 Provision for impairment of receivables
2,626 2,381
Net 5,590
5,126
d. Movements in the provision for impairment of receivables
March 31, December 31,
2014 2013
Beginning balance 2,872
2,047 Provision recognized during the year Note 29
304 1,589
Receivables written-off 622
Acquisition -
1 Disposal Note 3
- 158
Reclassification 15
Ending balance 3,176
2,872
The receivables written off are related-party and third-party trade receivables. Management believes that the provision for impairment of trade receivables is adequate to cover
losses on uncollectible trade receivables. Certain trade receivables of the subsidiaries amounting to Rp1,721 billion have been pledged as
collateral under lending agreements Notes 17 and 21. Refer to Note 37 for details of related party transactions.
7. INVENTORIES March 31,
December 31, 2014
2013
Components 459
272 SIM cards, RUIM cards, set top box, and
blank prepaid vouchers 127
102 Others
191 157
Total 777
531 Provision for obsolescence
Components 21
21 SIM cards, RUIM cards, set top box, and
blank prepaid vouchers 1
1 Total
22 22
Net 755
509
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.
