PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008,
AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated
97
45. SEGMENT INFORMATION
The Company and its subsidiaries have three main business segments operating in Indonesia namely: fixed wireline, fixed wireless and cellular. The fixed wireline segment provides local, SLJJ
and international telephone services, and other telecommunications services including among others, leased lines, telex, transponder, satellite and VSAT as well as ancillary services. The fixed
wireless segment provides CDMA-based telecommunication services which offers customers the ability to use a wireless handset with limited mobility within a local code area. The cellular segment
provides basic telecommunication services, particularly mobile cellular telecommunication services. Operating segments that do not individually represent more than 10 of the Company’s revenues are
presented as “Others”, comprising of telephone directories and building management businesses. Segment revenues and expenses include transactions between business segments and are
accounted for at prices that management believes represent market prices.
2007 Fixed
Fixed Total before
Total wireline
wireless Cellular
Others elimination Elimination consolidated
Segment results
External operating revenues 14,999,508
2,542,398 25,711,451
393,922 43,647,279
- 43,647,279
Inter-segment operating revenues 514,950
174,784 735,713
91,908 1,517,355
1,517,355 -
Total segment revenues 15,514,458
2,717,182 26,447,164
485,830 45,164,634
1,517,355 43,647,279
External operating expenses 11,554,793
1,013,898 10,747,249
434,770 23,750,710
- 23,750,710
Inter-segment operating expenses 166,116
371,296 1,455,028
17,768 1,677,976
1,677,976 -
Segment expenses 11,388,677
1,385,194 12,202,277
452,538 25,428,686
1,677,976 23,750,710
Segment results 4,125,781
1,331,988 14,244,887
33,292 19,735,948
160,621 19,896,569
Interest expense 1,070,206
Interest income 378,215
Loss on foreign exchange - net 113,642
Other income - net 61,195
Income tax expense 5,921,719
Equity in net income of associated companies
6,919 Income before minority interest
13,237,331 Unallocated minority interest
3,418,276 Net income
9,819,055
Other information
Segment assets 29,677,581
7,409,661 44,239,242
579,944 81,906,428
5,223,394 76,683,034
Investments in associates 87,180
- 14,744
- 101,924
- 101,924
Total consolidated assets 76,784,958
Total consolidated liabilities 19,104,746
1,564,828 20,983,806
274,407 41,927,787
5,223,394 36,704,393
Minority interest 85,137
- -
8,078 93,215
8,168,865 8,262,080
Capital expenditures 1,084,034
170,601 9,691,381
64,747 11,010,763
- 11,010,763
Depreciation and amortization 2,636,178
146,936 4,222,177
37,757 7,043,048
7,126 7,035,922
Amortization of goodwill and other intangible assets
751,968 -
35,036 -
787,004 -
787,004 Other non-cash expenses
307,552 -
67,931 2,554
378,037 -
378,037
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008,
AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated
98
45. SEGMENT INFORMATION continued
2008 Fixed
Fixed Total before
Total wireline
wireless Cellular
Others elimination Elimination consolidated
Segment results
External operating revenues 14,688,906
2,499,110 27,104,103
308,095 44,600,214
- 44,600,214
Inter-segment operating revenues 1,268,727
43,305 249,870
226,338 1,701,630
1,701,630 -
Total segment revenues 15,957,633
2,455,805 27,353,973
534,433 46,301,844
1,701,630 44,600,214
External operating expenses 12,404,542
1,417,757 13,135,480
463,767 27,421,546
- 27,421,546
Inter-segment operating expenses 289,035
- 1,532,158
18,112 1,839,305
1,839,305 -
Segment expenses 12,693,577
1,417,757 14,667,638
481,879 29,260,851
1,839,305 27,421,546
Segment results 3,264,056
1,038,048 12,686,335
52,554 17,040,993
137,675 17,178,668
Interest expense 1,001,438
Interest income 495,233
Loss on foreign exchange - net 63,806
Other income - net 326,769
Income tax expense 4,821,920
Equity in net income of associated companies
2,476 Income before minority interest
12,115,982 Unallocated minority interest
3,196,094 Net income
8,919,888 Other information
Segment assets 31,048,976
7,604,161 51,345,704
682,193 90,681,034
4,799,187 85,881,847
Investments in associates 121,200
- 20,359
- 141,559
- 141,559
Total consolidated assets 86,023,406
Total consolidated liabilities 20,751,310
1,644,512 26,729,172
303,553 49,428,547
4,799,186 44,629,361
Minority interest 69,663
- -
8,182 77,845
8,722,937 8,800,782
Capital expenditures 2,302,901
767,838 10,686,096
44,701 13,801,536
- 13,801,536
Depreciation and amortization 2,714,376
289,827 4,974,782
40,614 8,019,599
15,995 8,003,604
Amortization of goodwill and other intangible assets
778,028 -
35,036 -
813,064 -
813,064 Other non-cash expenses
404,828 -
40,150 899
445,877 -
445,877
46. JOINT OPERATION SCHEMES KERJA SAMA OPERASI OR KSO In 1995, the Company and five investors Pramindo, TII, MGTI, Dayamitra and BSI entered into
agreements for KSO and KSO construction agreements for the provision of telecommunication facilities and services for the Sixth Five-Year Development Plan “Repelita VI” of the Republic of
Indonesia. The five investors undertook the development and operation of the basic fixed telecommunications facilities and services in five of the Companys seven Divre.
Following the Indonesian economics crisis that began in mid-1997, certain KSO partners experienced difficulties in fulfilling their commitment under the KSO agreements. As remedial measures instituted
by both the Company and the KSO partners did not fully remedy this situation, the Company acquired and currently controls the related KSO through acquisition of its KSO partners or the businesses.
Accordingly, the revenue-sharing percentage in those KSO is no longer relevant as the financial statements of the acquired KSO partners and the related KSO are consolidated into the Company’s
consolidated financial statements since the date of acquisition Note 24.
