PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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47. JOINT OPERATION SCHEMES KSO
In 1995, the Company and five investors PT Pramindo Ikat Nusantara, PT AriaWest International, PT Mitra Global Telekomunikasi Indonesia, PT Dayamitra Telekomunikasi and PT Bukaka Singtel
International entered into agreements for Joint Operation Schemes “KSO” and KSO construction agreements for the provision of telecommunication facilities and services for the Sixth Five-Year
Development Plan “Repelita VI” of the Republic of Indonesia. The five investors undertook the development and operation of the basic fixed telecommunications facilities and services in five of the
Companys seven regional divisions. Following the Indonesian economics crisis that began in mid-1997, certain KSO investors
experienced difficulties in fulfilling their commitment under the KSO agreements. As remedial measures instituted by both the Company and those certain KSO investors did not fully remedy this
situation, the Company entered into agreements with some of the KSO investors to acquire those KSO investors Dayamitra in 2001, Pramindo in 2002 and AWI in 2003 - Note 5 and currently controls the
related KSOs through its ownership of such KSO investors. In January 2004, the Company acquired full operational control of the KSO IV operations Note 5. Accordingly, the revenue sharing
percentage in those KSOs is no longer relevant as the financial statements of the acquired KSO investors and the related KSOs are consolidated into the Company’s financial statements since the
date of acquisition. Subsequent to January 2004, only Regional Division VII is operated by a KSO investor, PT Bukaka Singtel International “BSI”, which is not controlled by the Company.
Under the Joint Operation Scheme between the Company and BSI, the KSO Unit VII is required to make payments to the Company consisting of the following:
Minimum Telkom Revenue “MTR” Represents the amount guaranteed by the KSO investor to be paid to the Company in accordance
with the KSO agreement.
Distributable KSO Revenues “DKSOR” DKSOR are the entire KSO revenues, less the MTR and the operational expenses of the KSO
Units, as provided in the KSO agreement. These revenues are shared between the Company and BSI based on agreed upon percentages.
The DKSOR from fixed wireless revenues “Telkom Flexi Revenues” are shared between the Company and BSI based on a ratio of 95 and 5, respectively.
The DKSOR from non-Telkom Flexi Revenues are shared between the Company and BSI based on a ratio of 35 and 65, respectively.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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47. JOINT OPERATION SCHEMES “KSO” continued
