PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
56
11. PROPERTY, PLANT AND EQUIPMENT continued
d. Others i
Interest capitalized to property under construction amounted to Rp.nil for the years ended December 31, 2010 and for nine months period ended September 30, 2011, respectively.
ii Foreign exchange loss capitalized as part of property under construction amounted to Rp.nil for the years ended December 31, 2010 and for nine months period ended September 30,
2011, respectively. iii In 2010, the useful lives of Company’s office and installation buildings, Submarine Cable
Communication SystemFiber Optic Communication System and Antenna and Tower were changed and accounted for prospectively. The impact is a reduction in the amount
depreciation expense of Rp.126,025 million recognized to the 2010 consolidated statement of comprehensive income Note 2k.
iv Telkomsel plans to replace certain equipment part of infrastructure with a net carrying amount of Rp.189,035 million as of April 2011, accordingly, Telkomsel changed the useful
life of such equipment. The impact is an additional depreciation expense of Rp.144,151 million charged to the 2011 consolidated statement of comprehensive income. The
equipment, with a cost Rp.184,596 million, were subsequently derecognized in August 2011. Upon the derecognition, the equipment had been fully depreciated.
v In addition to the derecognition of the above equipment, due to changes of technology, damage and other causes, certain equipment mainly part of infrastructure with a net book
value of Rp.15,786 million were also derecognized. vi The useful life of Telkomsel’s certain equipment part of supporting facilities was changed
from 10 years to 6 years to reflect its current economic life. The impact is an additional depreciation expenses of Rp.220,336 million charged to the 2011 consolidated statements
of comprehensive income.
vii Telkomsel’s certain equipment part of infrastructure with a net book value of Rp 41,567 million were sold to Nokia Siemens Network Oy and PT Huawei Tech Investment with a
price of US4.8 million Note 47a. viii Telkomsel’s certain equipment part of infrastructure with a net book value of Rp
1,013,188 million are planned to be sold, accordingly, reclassified to assets held for sale Note 9.
xi The Company and its subsidiaries own several pieces of land located throughout Indonesia with Building Use Rights “Hak Guna Bangunan” or “HGB” for a period of 18-45 years,
which will expire between 2011 and 2052. Management believes that there will be no difficulty in obtaining the extension of the land rights when they expire.
x The Company was granted the right to use certain parcels of land by the Ministry of Communications and Information Technology of the Republic of Indonesia formerly Ministry
of Tourism, Post and Telecommunications where the legal title of those parcels of land is still under the name of the Ministry of Tourism, Post and Telecommunications and the
Ministry of Transportation of the Republic of Indonesia. As the transfer to the Company of the legal title of ownership on those parcels of land is still in progress, the total magnitude of
such transfers is yet to be determined.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
57
11. PROPERTY, PLANT AND EQUIPMENT continued
d. Others continued xi As of September 30, 2011, the Company and its subsidiaries’ property, plant and
equipment, except for land, were insured with PT Asuransi Jasa Indonesia “Jasindo”, PT Asuransi Ramayana Tbk, PT Sarana Janesia Utama, PT Asuransi Wahana Tata, PT
Asuransi Ekspor Indonesia, PT Asuransi Sinar Mas, PT Asuransi Central Asia, PT Asuransi Allianz Utama Indonesia, HSBC Insurance Singapore Pte, Ltd, PT Asuransi Astra Buana
and PT Jardine Llyod Thompson against fire, theft, earthquake and other specified risks. Total cost of assets being insured amounted to Rp.69,919,590 million, which was covered
by sum insured basis with a maximum loss claim of Rp.1,014,650 million, US19.25 million, EUR0.22 million and SGD6.42 million and on first loss basis of Rp.7,230,657 million
including business recovery of Rp.486,000 million with the Automatic Reinstatement of Loss Clause. In addition, Telkom-1 and Telkom-2 were insured separately for US17.33 million
and US38.87 million, respectively. Management believes that the insurance coverage is adequate to cover potential losses of the insured assets.
xii As of September 30, 2011, the completion of assets under construction was around 75.52 of the total contract value, with estimated dates of completion between March 2011 and April
2012. Management believes that there is no impediment to the completion of the construction in progress.
xiii Certain property, plant and equipment of the Company’s subsidiaries have been pledged as collateral for lending agreements Notes 18 and 22.
xiv The Company and its subsidiaries have lease commitments for property, plant and equipments under RSA, transmission installation and equipment, data processing
equipment, office equipment, vehicles and CPE assets, with the option to purchase certain leased assets at the end of the lease terms. Future minimum lease payments for assets
under finance leases as of December 31, 2010 and September 30, 2011 are as follows:
December 31, September 30, Year
2010 2011
2011 286,257
260,017 2012
203,383 173,610
2013 141,579
131,372 2014
98,374 40,244
2015 23,665
23,222 Later
56,476 42,739
Total minimum lease payments 809,734
671,204 Interest
202,805 150,726
Net present value of minimum lease payments 606,929
520,478 Current maturities Note 19a
198,062 189,679
Long-term portion Note 19b 408,867
330,799
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
58
12. ADVANCES AND OTHER NON-CURRENT ASSETS
Advances and other non-current assets as of December 31, 2010 and September 30, 2011 consist of:
December 31, September 30, 2010
2011
Advances for purchase of property, plant and equipment 1,334,639
1,904,544 Prepaid rent - net of current portion Note 8
1,052,331 1,016,012
Deferred charges 447,174
402,504 Restricted cash
101,534 164,620
Security deposits 62,469
55,466 Equipment not used in operations - net
29,675 14,009
Others 24,873
47,218
Total 3,052,695
3,604,373
As of December 31, 2010 and September 30, 2011, equipment not used in operations represents Base Transceiver Station BTS and other equipment of the Company temporarily taken out from
operations but planned to be reinstalled. As of December 31, 2010 equipment not used in operations represents Base Transceiver Station BTS and other equipment of Telkomsel temporarily taken out
from operations but planned to be reinstalled. Telkomsel’s depreciation expense charged to the consolidated statements of comprehensive income for the year ended December 31, 2010 amounted
to Rp.303 million.
Deferred charges represent deferred Revenue-Sharing Arrangements “RSA” charges, deferred Indefeasible Right of Use “IRU” Agreement charges, and deferred land rights charges.
As of December 31, 2010 and September 30, 2011, deferred charges amortization amounted to Rp.18,638 million and Rp.61,219 million, respectively.
As of December 31, 2010 and September 30, 2011 restricted cash represent time deposits with original maturities of more than one year pledged as collateral for bank guarantees among others for
the USO contract Note 47h.
Refer to Note 44 for details of related party transactions. 13. GOODWILL AND OTHER INTANGIBLE ASSETS
i The changes in the carrying amount of goodwill and other intangible assets for the year ended
December 31, 2010 and for nine months period ended September 30, 2011 are as follows:
Other intangible
Goodwill assets
License Total
Gross carrying amount: Balance, December 31, 2009
106,544 9,085,534
806,861 9,998,939
Additions: The Company’s software
- 174,286
- 174,286
The subsidiaries’ software -
543,276 -
543,276 The subsidiaries’ license
- -
5,568 5,568
Acquisitions of Ad Medika 85,236
45,591 -
130,827 Reclassification
- 25,661
- 25,661
Balance, December 31, 2010 191,780
9,874,348 812,429
10,878,557