PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
103
42. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued
December 31, 2011 in millions continued Rupiah
U.S. Dollars Japanese Yen Others
equivalent in millions in millions in millions in billions
Liabilities Trade payables
Related parties 0.41
- -
4 Third parties
427.73 0.51
1.35 3,891
Other payables 0.52
- -
5 Accrued expenses
54.84 35.61
2.53 524
Advances from customers and suppliers 0.86
- -
8 Current maturities of long-term liabilities
66.61 767.90
- 694
Promissory notes 74.75
- -
678 Long-term liabilities - net of current maturities
140.99 9,214.77
- 2,357
Total liabilities 766.71
10,018.79 3.88
8,161
Liabilities - net 492.71
10,017.61 5.05
5,597
Assets and liabilities denominated in other foreign currencies are presented as U.S. Dollars equivalents using the exchange rate prevailing at end of the reporting period.
The Company and its subsidiaries’ activities expose them to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates and interest
rates.
If the Company and its subsidiaries report monetary assets and liabilities in foreign currencies as of June 30, 2012 using the rates on July 27, 2012, the unrealized foreign exchange loss will increase by
the amount of Rp.43 billion.
43. FINANCIAL RISK MANAGEMENT
1. Financial risk management The Company and its subsidiaries’ activities expose them to a variety of financial risks such as
market risks including foreign exchange risk, price risk and interest rate risk, credit risk and liquidity risk. Overall, the Company and subsidiaries’ financial risk management programme is
intended for minimizing lossess on the financial assets and financial liabilities arising from fluctuation of foreign currency exchange rates and the fluctuation of interest rates. Management
provides written policy for foreign currency risk management mainly through time deposits placements and hedging to cover foreign currency risk exposures for the time range of 3 up to 12
months.
Financial risk management is carried out by the Treasury Management unit under policies approved by the Board of Directors. The Treasury Management unit identifies, evaluates and
hedges financial risks.
a. Foreign exchange risk The Company and its subsidiaries are exposed to foreign exchange risk on sales, purchases
and borrowings transactions that are denominated in foreign currencies. The foreign currencies denominated transactions are primarily in U.S. Dollars and Japanese Yen. The
Company and its subsidiaries’ exposure to other foreign exchange rates is not material.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
104
43. FINANCIAL RISK MANAGEMENT continued
1. Financial risk management continued a. Foreign exchange risk continued
Increasing risks of foreign currency exchange rates on the obligations of the Company and its subsidiaries are expected to be offset by time deposits and receivables in foreign currencies
that are equal to at least 25 of the outstanding liabilities. The following represents the Company and its subsidiaries’ financial assets and financial
liabilities exposure to foreign currency risk:
June 30, 2012 Dolar A.S.
Yen Jepang in billion
in billion
Financial assets 0.30
0.00 Financial liabilities
0.68 9.67
Net exposure 0.38
9.67
Sensitivity analysis A strengthening of the U.S. Dollars and Japanese Yen, as indicated below, against the
Rupiah at June 30, 2012 would have decreased equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the
Company and its subsidiaries considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant.
Equityprofit loss June 30, 2012
U.S. Dollars 1 strengthening 36
Japanese Yen 5 strengthening 57
A weakening of the U.S. Dollars and Japanese Yen against the Rupiah at June 30, 2012 would have had the equal but opposite effect on the above currencies to the
amounts shown above, on the basis that all other variables remain constant.
b.
Market price risk The Company and its subsidiaries are exposed to changes in debt and equity market prices
related to available-for-sale investments that carried at fair value. Gain and losses arising from changes in the fair value of available-for-sale investments are recognized in equity.
The performance of the Company and its subsidiaries’ available-for-sale investments are monitored periodically, together with a regular assesment of their relevance to the Company
and its subsidiaries’ long term strategic plans. As at June 30, 2012 management considered the price risk for its available-for-sale
investments to be immaterial in terms of the possible impact on profit or loss and total equity from a reasonably possible change in fair value.
