PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND
THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
54
11. PROPERTY, PLANT AND EQUIPMENT continued
d. Others i
Interest capitalized to property under construction amounted to Rp.nil for the years ended December 31, 2010 and for three months period ended March 31, 2011, respectively.
ii Foreign exchange loss capitalized as part of property under construction amounted to Rp.nil for the years ended December 31, 2010 and for three months period ended March 31, 2011,
respectively. iii In 2010, the useful lives of Company’s office and installation buildings, Submarine Cable
Communication SystemFiber Optic Communication System and Antenna and Tower were changed and accounted for prospectively. The impact is a reduction in the amount
depreciation expense of Rp.126,025 million recognized to the 2010 consolidated statement of comprehensive income Note 2k.
iv The Company and its subsidiaries own several pieces of land located throughout Indonesia with Building Use Rights “Hak Guna Bangunan” or “HGB” for a period of 18-45 years,
which will expire between 2011 and 2052. Management believes that there will be no difficulty in obtaining the extension of the land rights when they expire.
v The Company was granted the right to use certain parcels of land by the Ministry of Communications and Information Technology of the Republic of Indonesia formerly Ministry
of Tourism, Post and Telecommunications where the legal title of those parcels of land is still under the name of the Ministry of Tourism, Post and Telecommunications and the
Ministry of Transportation of the Republic of Indonesia. As the transfer to the Company of the legal title of ownership on those parcels of land is still in progress, the total magnitude of
such transfers is yet to be determined.
vi As of March 31, 2011, the Company and its subsidiaries’ property, plant and equipment, except for land, were insured with PT Asuransi Jasa Indonesia “Jasindo”, PT Asuransi
Ramayana Tbk, PT Sarana Janesia Utama, PT Asuransi Wahana Tata, PT Asuransi Ekspor Indonesia, PT Asuransi Sinar Mas, PT Asuransi Central Asia, PT Asuransi Allianz Utama
Indonesia, HSBC Insurance Singapore Pte, Ltd, PT Asuransi Astra Buana and PT Asuransi Mitra Maparya against fire, theft, earthquake and other specified risks. Total cost of
assets being insured amounted to Rp.72,054,188 million, which was covered by sum insured basis with a maximum loss claim of Rp.953,618 million, US12.02 million, EUR0.22
million and SGD9.42 million and on first loss basis of Rp.7,183,445 million including business recovery of Rp.486,000 million with the Automatic Reinstatement of Loss Clause.
In addition, Telkom-1 and Telkom-2 were insured separately for US17.33 million and US38.27 million, respectively. Management believes that the insurance coverage is
adequate to cover potential losses of the insured assets.
vii As of March 31, 2011, the completion of assets under construction was around 51.33 of the total contract value, with estimated dates of completion between March 2011 and March
2012. Management believes that there is no impediment to the completion of the construction in progress.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND
THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
55
11. PROPERTY, PLANT AND EQUIPMENT continued
