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
92
44. POST-RETIREMENT HEALTH CARE BENEFITS continued
The actual return on plan assets was Rp.168,672 million and Rp.206,244 million for six months period ended June 30, 2009 and 2010, respectively.
The components of net periodic post-retirement health care benefits cost are as follows:
2009 2010
Service costs 36,004
41,961 Interest costs
343,384 372,276
Expected return on plan assets 205,189
294,766 Recognized actuarial gains
8,409 -
Net periodic post-retirement benefits costs 165,790
119,471 Amounts charged to subsidiaries under contractual agreements
138 316
Total net periodic post-retirement health care benefits costs less amounts charged to subsidiaries Note 35
165,652 119,155
As of June 30, 2009 and 2010, plan assets included the Company’s Series B shares with total fair value of Rp.66,116 million and Rp.74,936 million, respectively.
The movements of the accrued post-retirement health care benefits costs for six months period ended June 30, 2009 and 2010, are as follows:
2009 2010
Accrued post-retirement health care benefits costs at beginning of year
2,570,720 1,801,776
Net periodic post-retirement health care benefits costs less amounts charged to subsidiaries Note 35
165,652 119,155
Amounts charged to subsidiaries under contractual agreements
138 316
Employer’s contributions 500,138
360,316
Accrued post-retirement health care benefits costs at end of year
2,236,372 1,560,931
The actuarial valuation for the post-retirement health care benefits was performed based on the measurement date as of December 31, 2008 and 2009, with reports dated March 31, 2009 and
March 30, 2010, respectively, by WWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary as of December 31, 2008 and
2009, are as follows:
2008 2009
Discount rate 12
10.75 Expected long-term return on plan assets
9.25 9.25
Health care costs trend rate assumed for next year 12
10 Ultimate health care costs trend rate
8 8
Year that the rate reaches the ultimate trend rate 2011
2012
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
93
45. RELATED PARTY TRANSACTIONS
In the normal course of business, the Company and its subsidiaries entered into transactions with related parties. It is the Companys policy that the pricing of these transactions be the same as those
of arms-length transactions.
The following are significant agreementstransactions with related parties:
a. Government
i. The Company obtained two-step loans from the Government, the Companys majority stockholder Note 21.
Interest expense for two-step loans amounted to Rp.147,581 million and Rp.80,876 million for six months period ended June 30, 2009 and 2010, respectively. Interest expense for two-step
loans represent 15.7 and 8.4 of the total interest expense for each period.
ii. The Company and its subsidiaries pay concession fees for telecommunications services provided and radio frequency usage charges to the Ministry of Communications and
Information formerly Ministry of Tourism, Post and Telecommunications of the Republic of Indonesia.
Concession fees amounted to Rp.155,540 million and Rp.168,902 million for six months period ended June 30, 2009 and 2010, respectively Note 36, representing 0.8 and 0.7,
respectively, of the total operating expenses for each period. Radio frequency usage charges amounted to Rp.1,148,652 million and Rp.1,841,046 million for six months period ended June
30, 2009 and 2010, respectively Note 36, representing 6.0 and 8.0 of the total operating expenses for each period.
Telkomsel paid an up-front fee for the 3G license amounting to Rp.756,000 million and recognized as an intangible asset Note 14.iii.
iii. Starting 2005, the Company and its subsidiaries pay USO charges to the Ministry of Communications and Information of the Republic of Indonesia pursuant to MoCI Regulation
No.15PerM.KOMINFO92005 of September 30, 2005. USO charges amounted to Rp.384,181 million and Rp.408,844 million for six months period
ended June 30, 2009 and 2010, respectively Note 36, representing 2.0 and 1.8 of the total operating expenses for each period.
