PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated
118
50. CONTINGENCIES continued
b. continued On March 3, 2008, Denpasar District Court found the defendants guilty and sentenced each
defendant to a one-year six-month prison term and a one year prison term and gave a Rp.50 million penalty. The defendants have filed an appeal to the Bali High Court objecting to the
District Court ruling. On November 5, 2008, the Bali High Court found the defendants guilty. On January 16, 2009, one of the defendants in Bali High Court has filed an appeal to the Indonesian
SC. As of the issuance date of the consolidated financial statements, no decision has been reached on both appeals.
c. The Commission for the Supervision of Business Competition “Komisi Pengawasan Persaingan Usaha” or “KPPU” on its letter dated December 5, 2007, notified Telkomsel that based on its
investigation of case No. 07KPPU-L2007 dated November 19, 2007, according to the applied provisions regarding allegation of violating Law No. 51999, “Prohibition of Monopolistic Practice
and Unfair Business Competition” the “Law”, related to cross-ownership by Temasek Holdings and monopoly practices by Telkomsel, it had decided that, among other things :
Telkomsel was proven not to have violated article 25.1.b of the Law, Telkomsel had violated article 17.1 of the Law,
Temasek Holdings and certain affiliated companies were instructed to release their ownership either in Indosat or Telkomsel with the following conditions:
Maximum 5 of total shares for each buyer, The buyer is not associated with Temasek Holdings.
Telkomsel was to be charged a penalty of Rp.25,000 million and instructed Telkomsel to discontinue the imposition of high tariffs and reduce its tariffs by least 15.
On May 9, 2008 the Court pronounced its verdict and concluded among other things: Telkomsel was proven not to have violated article 25.1.b of the Law,
Telkomsel had violated article 17.1 of the Law, Temasek Holdings and certain affiliated companies were instructed to release their
ownership in either Indosat or Telkomsel or to decrease their ownership by 50 in each of those companies within twelve months from the date of the decision becoming final and
legally binding at the following conditions:
Maximum 10 of total shares for each buyer, The buyer is not associated with Temasek Holdings.
Telkomsel was charged a penalty of Rp.15 billion, The Court revoked the decision of KPPU on the instruction to reduce the tariffs because
KPPU did not have the authority to determine the tariffs. On May 22, 2008, Telkomsel filed an appeal to the SC. In its verdict on September 9, 2008, the
SC revoked the Court’s verdict on the instruction to Temasek Holdings and certain affiliated companies to release their ownership in either Indosat or Telkomsel. On May 14, 2009,
Telkomsel filed a judicial review to the SC on the verdict. On May 5, 2010, SC pronounced that it rejected Telkomsel’s appeal for the judicial review. As of the issuance date of the consolidated
financial statements, Telkomsel has not received any formal verdict form the SC.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated
119
50. CONTINGENCIES continued
d. Certain subscribers of Telkomsel, Indosat and PT XL Axiata Tbk formerly PT Excelcomindo Pratama Tbk which are domiciled in Bekasi, Tangerang and other various locations, represented
by the Law Firms, have filed class-action lawsuits with the Courts against Telkomsel, the Company, Indosat, the Government, Temasek Holdings and certain of its affiliated companies
“Parties”. The Parties are alleged to have had excessive price practices that potentially could have adversely affected those subscribers.
On July 8, 2008, the class-action lawsuits filed in Bekasi District Courts against Telkomsel by certain subscribers has been revoked and the case is closed.
On August 14, 2008, based on the Court’s verdict, the class–action lawsuits in Tangerang shall be consolidated with other various locations. The subscribers in other various locations objected
to the decision and filed an appeal to the SC. On January 21, 2009, in its verdict No. 01KPdt.Sus2009, the SC approved the subscribers’ appeal, accordingly, the class action
lawsuit is processed separately in the respective Court.
On January 27, 2010, the Central Jakarta District Court decided to revoke a class action lawsuit which was filed by certain subscribers of other various locations
On May 24, 2010, the class-action lawsuits filed in Tangerang District Courts against the Parties by certain subscribers has been revoked and the case is closed.
Management believes that Telkomsel has applied tariffs in accordance with prevailing regulations, accordingly, such allegation has no strong basis.
e. The Company, Telkomsel and seven other local operators are being investigated by the KPPU for allegation of SMS cartel practices. As a result of the investigations on June 17, 2008, KPPU
found that the Company, Telkomsel and certain other local operators had proven to violate Law No. 51999 article 5 and gave the Company and Telkomsel Rp.18,000 million penalty and
Rp.25,000 million penalty, respectively.
Pursuant to the decision of KPPU dated June 17, 2008, the Company and Telkomsel have filed an objection with the Bandung District Court and South Jakarta District Court, respectively, on
July 14, 2008 and July 11, 2008, respectively.
Management believes that there are no such cartel practices that led to breach of prevailing regulations. As of the issuance date of the consolidated financial statements, no decision has
been reached on the appeal.
