PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
97
37. RELATED PARTY TRANSACTIONS continued c.
Significant agreements with related parties
i. The Government
The Company obtained two-step loans from the Government Note 19. ii. Indosat
The Company has an agreement with Indosat for the provision of international telecommunications services to the public.
The Company has also entered into an interconnection agreement between the Company’s fixed line network Public Switched Telephone Network or “PSTN” and Indosat’s GSM mobile
cellular telecommunications network in connection with the implementation of the Indosat Multimedia Mobile services and the settlement of the related interconnection rights and
obligations.
The Company also has an agreement with Indosat for the interconnection of Indosats GSM mobile cellular telecommunications network with the Companys PSTN, enabling each party’s
customers to make domestic calls between Indosat’s GSM mobile network and the Company’s fixed line network and allowing Indosat’s mobile customers to access the Company’s IDD
service by dialing “007”.
The Company has been handling customer billings and collections for Indosat. Indosat is gradually taking over the activities and performing its own direct billing and collection. The
Company receives compensation from Indosat computed at 1 of the collections made by the Company beginning January 1, 1995, plus the billing process expenses which are fixed at a
certain amount per record. On December 11, 2008, the Company and Indosat agreed to implement IDD service charge tariff which already takes into account the compensation for
billing and collection. The agreement is valid and effective starting on January to December 2012, and can be applied until a new agreement becomes available.
On December 28, 2006, the Company and Indosat signed amendments to the interconnection agreements for the fixed line networks local, SLJJ and international and mobile network for
the implementation of the cost-based tariff obligations under the MoCI Regulations No. 8 Year 2006 Note 40. These amendments took effect on January 1, 2007.
Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to its GSM mobile cellular customers.
The Company provides leased lines to Indosat and subsidiaries, namely PT Indosat Mega Media and Lintasarta. The leased lines can be used by these companies for telephone,
telegraph, data, telex, facsimile or other telecommunication services.
iii. Others The Company has entered into agreements with associated companies, namely CSM, PSN
and Gratika for the utilization of the Companys satellite transponders or frequency channels and leased lines.
Telkomsel has an agreement with PSN for the lease of PSN’s transmission link. Based on the agreement, which was made on March 14, 2001, the minimum lease period is 2 years since
the operation of the transmission link and is extendable subject to agreement by both parties. As of the issuance date of the consolidated financial statements, the extension is still in
process.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
98
37. RELATED PARTY TRANSACTIONS continued
c.
Significant agreements with related parties continued
iii. Others continued Koperasi Pegawai Telkomsel “Kisel” is a cooperative that was established by Telkomsel’s
employees to engage in car rental services, printing and distribution of customer bills, collection and other services principally for the benefit of Telkomsel. Telkomsel also has
dealership agreements with Kisel for distribution of SIM cards and pulse reload vouchers.
d. Key management personnel remuneration
Key management personnel consists of the Boards of Commissioners and Directors of the Company and its subsidiaries.
The Company and subsidiaries provide honorarium and facilities to support the operational duties of the Board of Commissioners and short-term employment benefits in the form of salaries and
facilities to support the operational duties of the Board of Directors. The total of such benefits is as follows:
2013 2012
of of
Amount total expenses
Amount total expenses
Board of Directors 354
0.62 252
0.49 Board of Commissioners
106 0.19
61 0.12
38. SEGMENT INFORMATION
Management manages the Companys business portfolios using the customer-centric approach, as part of the Company’s strategy to provide one-stop solution to customers.
The Company and subsidiaries have four main operating segments, namely personal, home, corporate and others. The personal segment provides mobile cellular and fixed wireless telecommunications services to
individual customers. The home segment provides fixed wireline telecommunications services, pay TV, data and internet services to home customers. The corporate segment provides telecommunications services, including
interconnection, leased lines, satellite, VSAT, contact center, broadband access, information technology services, data and internet services to companies and institutions. Operating segments that are not monitored separately
by the Chief Operation Decision Maker are presented as Others, which provides building management services.
Management monitors the operating results of the business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating
profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements.
However, the financing activities and income taxes are not separately monitored and are not allocated to operating segments.
