PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
38
5. TRADE RECEIVABLES continued
a. Movements in the provision for impairment of receivables
March 31, 2017 December 31, 2016
Beginning balance 2,990
3,048 Provision recognized during the year Note 25
479 743
Receivables written off -
801
Ending balance 3,469
2,990
The receivables written off relate to both related party and third party trade receivables. Management believes that the provision for impairment of trade receivables is adequate to cover
losses on uncollectible trade receivables. As of March 31, 2017, certain trade receivables of the subsidiaries amounting to
Rp4,422 billion have been pledged as collateral under lending agreements Notes 15, 16b and 16c. Refer to Note 31 for details of related party transactions.
6. INVENTORIES March 31, 2017
December 31, 2016
Components 332
299 SIM cards and blank prepaid vouchers
158 168
Others 170
164 Total
660 631
Provision for obsolescence Components
18 18
SIM cards and blank prepaid vouchers 29
29 Others
Total 47
47
Net 613
584
Movements in the provision for obsolescence are as follows:
March 31, 2017 December 31, 2016
Beginning balance 47
41 Provision recognized during the year
- 11
Inventory written off -
5
Ending balance 47
47
The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses as of March 31, 2017 and March 31, 2016 amounted to
Rp581 billion and Rp478 billion, respectively Note 24.
Management believes that the provision is adequate to cover losses from decline in inventory value due to obsolescence.
Certain inventories of the subsidiaries amounting to Rp256 billion have been pledged as collateral under lending agreements Notes 15, 16b and 16c.
As of March 31, 2017 and December 31, 2016, modules and components held by the Group with book value amounting to Rp196 billion and Rp199 billion, respectively, have been insured against fire, theft,
and other specific risks. Modules are recorded as part of property and equipment. Total sum insured as of March 31, 2017 and December 31, 2016 amounted to Rp220 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of inventories arising from the insured risks.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
39
7. ADVANCES AND PREPAID EXPENSES March 31, 2017
December 31, 2016
Frequency license Notes 34c.i and 34c.ii 2,195
3,056 Prepaid rental
1,899 1,234
Advances 434
394 Salaries
358 229
Advance to employee 72
32 Others
710 301
Total 5,668
5,246
Refer to Note 31 for details of related party transactions.
8. LONG-TERM INVESTMENTS
March 31, 2017 Percentage of
ownership Beginning
balance Additions
Deductions Share of net
profit loss of associated
company Dividend
Share of other comprehensive
income of associated
company Ending
balance Long-term investments in
associated companies:
Tiphone
a
24.43 1,488
- 20
- -
1.508 Indonusa
b
20.00 221
- -
- -
221 Teltranet
c
51.00 38
- 3
- -
35 PT Integrasi Logistik Cipta
Solusi “ILCS”
e
49.00 42
- -
- 42
Telin Malaysia
f
49.00 -
- -
CSM
g
25.00 -
- -
- -
- Sub-total
1,789 -
17 -
- 1.806
Other long-term investments 58
1 -
- -
59
Total Long-term investments
1,847 1
17 -
- 1.865
Summarized financial information of the Group’s investments accounted under the equity method for 2017:
Tiphone Indonusa
Teltranet ILCS
Telin Malaysia CSM
Statements of financial position Current assets
7.709 170
66 141
24 161
Non-current assets 743
444 90
20 14
761 Current liabilities
1.248 532
84 74
66 594
Non-current liabilities 3.762
405 3
1 -
1.206
Equity deficit 3.442
323 69
86 28
878
Statements of profit or loss and other comprehensive income
Revenues 27.310
605 30
18 23
131 Cost of revenues and operating expenses
26.445 583
37 17
29 221
Other income expenses including finance costs - net
231 17
- -
- 88
Profit loss before tax 634
5 7
1 6
178 Income tax benefit expense
166 33
2 -
-
Profit loss for the year 468
28 5
1 6
178
Other comprehensive income loss 5
7 -
- -
-
Total comprehensive income loss for the year
463 21
5 1
6 178
Using financial information as of December 31, 2016 and for the period then ended.