PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications
• Employees’ income tax expenses increased by Rp122 billion, or 18.1, from Rp674 billion in 2009 to
Rp796 billion in 2010 due to income tax payment for the early retirement program. The early
retirement program was implemented in 2009, however payment for the post retirement beneits
were paid in 2010. Therefore, tax withholding was recorded in 2010 which resulted in an increase in
employee income tax in 2010. 4. Interconnection Expenses
Interconnection expenses increased by Rp157 billion, or 5.4, from Rp2,929 billion in 2009 to
Rp3,086 billion in 2010. Interconnection expenses increased primarily due to an increase in domestic
interconnection and transit and international interconnection. Our total interconnection expenses
accounted for 6.7 of our consolidated expenses for the year ended december 31, 2010, compared to
6.6 for the year ended december 31, 2009. 5. Marketing Expenses
Marketing expenses increased by Rp265 billion, or 11.7, from Rp2,260 billion in 2009 to Rp2,525 billion
in 2010 primarily due to an increase in advertising and promotion expenses by Rp270 billion, or 15.7.
The increase in advertising expenses was due to the promotion of cellular products and Flash and
Speedy, our broadband products 6. General and Administrative Expenses
General and administrative expenses decreased by Rp269 billion, or 9.6, from Rp2,806 billion in
2009 to Rp2,537 billion in 2010 primarily due to a decrease in collection expenses of Rp317 billion, or
44.2, and a decrease in security and screening expenses by Rp50 billion or 8.9. The decrease in
collection expenses in 2010 was due to the fact that Telkom only used Finnet as its collection agent, while
several agents were used in 2009. The decreases in collection expenses and security and screening
expenses were ofset by an increase in general and social contributions of Rp72 billion, or 72.7, and an
increase in travel expenses of Rp37 billion, or 16.6. 7. Gain loss on foreign exchange - net
Foreign exchange gain decrease by Rp930 billion, or 95.6 from Rp973 billion in 2009 to Rp43 billion
in 2010. The decrease in foreign exchange gain is primarily due to the appreciation of the Yen which
resulted in increased cost of servicing our Yen denominated debt ofset by smaller gains on our US
dollar borrowings
C. Proit and Proit Margin
As a result of the foregoing, proit decreased by Rp1,158 billion, or 4.8, from Rp24,081 billion in 2009 to
Rp22,923 billion in 2010. Meanwhile, revenues increased by Rp951 billion, or 1.4. Our proit margin decreased
from 35.3 in 2009 to 33.1 in 2010.
D. Proit before Income Tax and Pre-Tax Margin
As a result of the foregoing, proit before income tax decreased by Rp1,031 billion, or 4.6, from Rp22,447
billion in 2009 to Rp21,416 billion in 2010. Pre-tax margin decreased from 32.9 in 2009 to 31.0 in 2010.
E. Income Tax Expense
Income tax expense decreased by Rp858 billion, or 13.4, from Rp6,404 billion in 2009 to Rp5,546 billion
in 2010, due to a decrease in the corporate income tax rate applied to us from previously 23.0 in prior years
to 20.0 at the end of 2010. These decreased rates were applied to state-owned companies at least 40.0
of whose outstanding shares were owned by the public.
F. Proit for the Year Attributable to Non-controlling Interest
Proit for the year attributable to non-controlling interest decreased by Rp311 billion, or 6.7, from Rp4,644 billion
in 2009 to Rp4,333 billion in 2010.
G. Proit for the Year Attributable to Owners of the Parent
As a result of the foregoing, proit for the year attributable to owners of the parent increased by Rp138
billion, or 1.2, from Rp11,399 billion in 2009 to Rp11,537 billion in 2010.
H. Equity
Total equity increased by Rp6,920 billion, or 14.0, from Rp49,495 billion in 2009 to Rp56,415 billion in 2010.
The increase in total equity was primarily the result of comprehensive income of Rp15,904 billion in 2010,
ofset by dividends of Rp8,892 billion. As a result of
PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications
the foregoing, our retained earnings increased by Rp5,869 billion, or 28.3, from Rp36,039 billion as of december 31, 2009 to Rp41,908
billion as of december 31, 2010.
telkom’s results Of Operations By segment
Year Ended December 31, 2009
2010 2011
2011 Rp billion Rp billion Rp billion
US million
Fixed Wireline Segment results
External revenues 21,210
21,619 21,970
2,423 Inter-segment revenues
4,237 5,434
6,549 722
Other revenue 361
314 309
34 Total segment revenues
25,447 27,053
28,519 3,145
Segment expenses 21,040
22,268 23,385 2,579
Segment results 4,407
5,099 5,443
600 depreciation and amortization
4,684 4,211
3,249 358
Other non-cash expenses 461
337 709
78
Fixed Wireless Segment results
External revenues 3,431
2,951 2,101
232 Inter-segment revenues
209 174
126 14
Other revenue 8
22 11
1 Total segment revenues
3,640 3,125
2,227 246
Segment expenses 3,368
2,877 3,671
405 Segment results
280 270
1,433 158
depreciation and amortization 637
730 1,309
144 Other non-cash expenses
- 34
19 2
Cellular Segment results
External revenues 42,633
43,592 46,632
5,143 Inter-segment revenues
1,764 1,931
2,054 227
Other revenue 145
220 295
33 Total segment revenues
44,397 45,523
48,686 5,370
Segment expenses 25,326
28,386 31,314 3,453
Segment results 19,216
17,357 17,667
1,950 depreciation and amortization
8,623 9,637
10,261 1,132
Other non-cash expenses 108
148 155
17
Others Segment results
External revenues 404
467 550
61 Inter-segment revenues
325 745
941 104
Other revenue 290
52 250
27 Total segment revenues
729 1,212
1,491 165
Segment expenses 840
1,053 1,460
161 Segment results
179 211
281 31
depreciation and amortization 31
34 44
5
segMent results
Year ended December 31, 2011 compared to year ended December
31, 2010.
Fixed wireline segment
Our ixed wireline segment revenues increased by Rp1,466 billion, or
5.4, from Rp27,053 billion in 2010 to Rp28,519 billion in 2011. The
increase in ixed wireline segment revenues was primarily due to an
increase in data and internet service revenue of Rp1,134 billion, or 16.8
and an increase in internet connection revenues from broadband access and
other telecommunication services of Rp819 billion or 37.9. The increase
was partially ofset by a decrease in voice revenue by Rp193 billion, or 2.1
and a decrease in network revenues by Rp160 billion, or 3.6.
Our ixed wireline segment expenses increased by Rp1,117 billion, or 5.0,
from Rp22,268 billion in 2010 to Rp23,385 billion in 2011, primarily due
to increases in personnel expenses of Rp845 billion or 17.4 which relected
the impact of the early retirement program, general and administration
expenses of Rp497 billion or 28.5 and operational and maintenance
expenses of Rp728 billion or 10.0. The increase was partially ofset by a
decrease in interconnection expenses by Rp90 billion, or 2.7.
Fixed wireless segment
Our ixed wireless segment revenues decreased by Rp898 billion, or
28.7, from Rp3,125 billion in 2010 to Rp2,227 billion in 2011, primarily
due to decreases in voice revenue of Rp546 billion or 28.4, data, internet
and information technology service revenue of Rp290 billion or 32.1, and
incoming interconnection of Rp62 billion or 20.6 respectively.
Our ixed wireless segment expenses increased by Rp794 billion, or 27.6,
from Rp2,877 billion in 2010 to Rp3,671
PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications
billion in 2011, primarily impacted of asset impairment of Rp564 billion, an increase in operation and maintenance
expenses of Rp158 billion or 10.9. The increase was partially ofset by a decrease in interconnection expenses
by Rp31billion or 13.1.
Cellular segment
Our cellular segment revenues increased by Rp3,163 billion, or 6.9, from Rp45,523 billion in 2010 to Rp48,686 billion in
2011, primarily due to an increase in cellular voice revenues by Rp1,164 billion or 3.7 and data and internet revenues
by Rp1,990 billion or 19.9 respectively. Our cellular segment expenses increased by Rp2,928
billion, or 10.3, from Rp28,386 billion in 2010 to Rp31,314 billion in 2011, primarily due to increase in operations,
maintenance and telecommunication service expenses by Rp1,082 billion or 4.4, asset depreciation by Rp600
billion or 6.4, personnel expenses by Rp270 billion or 16.3, interconnection expenses by Rp249 billion or
17.1, marketing expenses by Rp215 billion or 52.4 and an increased in amortization expenses by Rp138 billion,
or 168.5.
Other segment
Our other segment revenues increased by Rp279 billion, or 23.0, from Rp1,212 billion in 2010 to Rp1,491 billion in 2011,
due to increase in directory assistance, property, others revenues by Rp149 billion or 21.8 and call center service
revenues by Rp130 billion or 24.6. Our other segment expenses increased by Rp407 billion,
or 38.7, from Rp1,053 billion in 2010 to Rp1,460 billion in 2011, primarily due to increases in operations and
maintenance by Rp252 billion or 39.7 and personnel expense by Rp63 billion or 58.6 and marketing expenses
by Rp29 billion, or 20.1.
Year ended December 31, 2010 compared to year ended December 31, 2009
Fixed wireline segment
Our ixed wireline segment revenues increased by Rp1,606 billion, or 6.3, from Rp25,447billion in 2009 to Rp27,053
billion in 2010. The increase in ixed wireline segment revenues was primarily due to the increase in data and
internet services revenues by Rp3,763 billion, or 65.3, from the increase in internet connection revenues from the
broadband access. The increase was also attributable to the increase in network services revenue by Rp571 billion,
or 13.7 and interconnection revenue by Rp308 billion, or 10.3. The increase in ixed wireline segment revenues
was partially ofset by a decrease in ixed wireline’s voice revenues by Rp3,177 billion, or 28.9, primarily due to
decreases in call volumes. Our ixed wireline segment expenses increased by Rp867
billion, or 4.1, from Rp21,041 billion in 2009 to Rp22,268 billion in 2010, primarily due to increase in operation and
maintenance by Rp992 billion, or 25.8 primarily due to increase in partnership fee and radio transmission,
interconnection services by Rp810 billion, or 15.8 from an increase in international interconnection, and marketing
of Rp103 billion, or 18.3. The increase in ixed wireline segment expenses was partially ofset by a decrease in
personnel expenses by Rp849 billion or 13.2 primarily due to the absence of a early retirement program in
2010 and general and administration expenses by Rp306 billion or 24.3.
Fixed wireless segment
Our ixed wireless segment revenues decreased by Rp515 billion, or 14.1, from Rp3,640 billion in 2009 to Rp3,125
billion in 2010, primarily due to a decrease in fixed wireless’s voice revenues by Rp568 billion, or 22.8
and interconnection revenues by Rp67 billion or 18.1. This decrease was offset by an increase in data, internet
and information technology services revenue by Rp121 billion or 15.4.
Our ixed wireless segment expenses decreased by Rp491 billion, or 14.6, from Rp3,368 billion in 2009 to Rp2,877
billion in 2010, primarily due to a decrease in operation and maintenance by Rp385 billion or 22.6, personnel
expenses by Rp130 billion or 46.0, interconnection expenses by Rp66 billion, or 21.9 and marketing expense
by Rp47 billion or 15.4. The decrease in ixed wireless segment expenses was partially ofset by an increase
in depreciation expense by Rp100 billion, or 15.8 and general administration expense by Rp31 billion, or 22.5.
Cellular segment
Our cellular segment revenues increased by Rp1,126 billion, or 2.5, from Rp44,397 billion in 2009 to Rp45,523 billion
in 2010, primarily due to an increase in cellular voice revenues by Rp2,035 billion or 6.7 billion, in line with the
15.1 growth in Telkomsel’s total cellular subscribers from 81.6 million subscribers as of december 31, 2009 to 94
million subscribers as of december 31, 2010. The increase in cellular segment’s revenues was partially ofset by a
decrease in data and internet by Rp932 billion, or 8.5. Our cellular segment expenses increased by Rp3,060
billion, or 12.1, from Rp25,326 billion in 2009 to Rp28,386 billion in 2010, primarily due to an increase in operations,
maintenance and telecommunications services expenses by Rp1,082 billion or 10.5 primarily from an increase in radio
carrier equipment rent, antenna and tower, depreciation expenses of Rp876 billion or 10.3, interconnection
