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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29. DIFFERENCE IN VALUE OF RESTRUCTURING TRANSACTIONS BETWEEN ENTITIES
UNDER COMMON CONTROL continued Cross-ownership transactions and acquisition of Pramindo continued
As discussed in Note 5b, in connection with the acquisition of Pramindo on August 15, 2002, the portion representing Indosat’s 13 equity interest in Pramindo has been accounted for as a
restructuring of entities under common control. On the acquisition date, the difference between the purchase consideration and the historical amount of the net assets acquired amounting to Rp296,038
million was included as “Difference in value of restructuring transactions between entities under common control” in the stockholders’ equity section.
The difference in value of restructuring transactions between entities under common control arising from cross-ownership transactions and acquisition of Pramindo can be summarized as follows:
Historical Consideration Amount of
Paid Net Assets
Deferred Change
Received Investment Income Tax in Equity
Total Tax
Net
Cross-ownership transactions with Indosat in 2001:
Acquisition of 35 equity interest in Telkomsel
10,782,450 1,466,658
337,324 -
8,978,468 -
8,978,468 Sale of 22.5 equity
interest in Satelindo 2,122,260
- -
290,442 2,412,702
627,678 1,785,024
Sale of 37.66 equity interest in Lintasarta
437,631 116,834
- -
320,797 119,586
201,211 Total
8,222,559 1,583,492
337,324 290,442
6,244,969 747,264
6,992,233 Acquisition of 13 equity interest
in Pramindo in 2002 from Indosat Note 5b
434,025 137,987
- -
296,038 -
296,038 Total
8,656,584 1,721,479
337,324 290,442
6,541,007 747,264
7,288,271
On December 20, 2002, the Government sold its 41.94 ownership interest in Indosat to STTC and waived its special voting rights with respect to the Series A Dwiwarna share. As a result, as of
December 20, 2002, the Government ceased to be the majority and controlling shareholder of Indosat and consequently, the Company no longer considers Indosat as a common control entity as of that
date. As discussed in Note 4b, in connection with the adoption of PSAK 38R and pursuant to a ruling issued by BAPEPAM regarding the initial application of PSAK 38R by public companies, the
Company has reclassified the difference in value of restructuring transactions between entities under common control account resulting from the cross-ownership transactions and acquisition of
Pramindo as a charge to retained earnings as of January 1, 2005.
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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29. DIFFERENCE IN VALUE OF RESTRUCTURING TRANSACTIONS BETWEEN ENTITIES
