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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23. NOTES AND BONDS continued
c. Guaranteed Notes
continued As part of Telkomsel management’s plan to minimize foreign exchange exposures and to reduce
interest charges, on April 30, 2005, which was the third anniversary of the issue date of the Notes, Telkomsel repurchased all the outstanding Notes with an aggregate nominal value of US79.4
million at 102.5 US81.4 million and recorded a loss of Rp19,038 million on the extinguishment of the debt.
24. BANK LOANS
The details of long-term bank loans as of December 31, 2004 and 2005 are as follows:
2004 2005
Outstanding Outstanding
Original Original
Total Facility Currency
Rupiah Currency
Rupiah Lenders
Currency in millions
in millions Equivalent
in millions Equivalent
The Export-Import Bank of Korea
US 124.0
59.1 549,449
117.6 1,156,296
Citibank N.A. US
113.3 85.9
798,197 62.5
614,501 EUR
73.4 51.4
649,758 36.7
427,718 Bank Central Asia
Rp 173,000.0
- 143,489
- 86,093
Consortium of banks Rp
150,000.0 -
117,174 -
74,890 Bank Mandiri
Rp 82,425.0
- 59,729
- 14,918
Bank Niaga Rp
8,800.0 -
7,330 -
7,229 Bank Bukopin
Rp 5,300.0
- -
- 5,001
Deutsche Bank Rp
- -
41,009 -
- Syndicated banks
Rp -
- 8,088
- -
US -
0.4 4,092
- -
Total 2,378,315
2,386,646 Current maturities of bank loans
602,516 634,542
Long-term portion 1,775,799
1,752,104
a. The Export-Import Bank of Korea
On August 27, 2003, the Company entered into a loan agreement with the Export-Import Bank of Korea for a total facility of US124.0 million. The loan is used to finance the CDMA procurement
from the Samsung Consortium Note 50a.ii and available until April 2006. The loan bears interest, commitment and other fees totaling 5.68. The loan is unsecured and payable in 10 semi-annual
installments on June 30 and December 30 of each year beginning in December 2006. As of December 31, 2004 and 2005, principal outstanding amounted to US59.1 million Rp549,449
million and US117.6 million Rp1,156,296 million, respectively.
b. Citibank N.A.
1. Hermes Export Facility
On December 2, 2002, pursuant to the partnership agreement with Siemens Aktiengesellschaft AG Note 50a.i, Telkomsel entered into the Hermes Export Facility Agreement Facility
with Citibank International plc as Original Lender and Agent and Citibank N.A., Jakarta branch as Arranger covering a total facility of EUR76.2 million which is divided into several
tranches.
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
- 68
24. BANK LOANS continued
b. Citibank N.A
.continued 1.
Hermes Export Facility continued The agreement was subsequently amended on October 15, 2003, amending the Facility amount
to EUR73.4 million and repayment dates. The interest rate per annum on the Facility is determined based on the aggregate of the
applicable margin, EURIBOR and mandatory cost, if any i.e., 2.96 as of December 31, 2004 and 3.33 as of December 31, 2005. Interest is payable semi-annually, starting on the
utilization date of the Facility May 29, 2003.
As of December 31, 2004 and 2005, the outstanding balance was EUR51.4 million Rp649,758 million and EUR36.7 million Rp427,718 million, respectively.
The schedule of the principal payments on this long-term loan as of December 31, 2005 is as follows:
Amount EUR
Rupiah Year
in millions Equivalent
2006 14.7
171,087 2007
14.7 171,087
2008 7.3
85,544 36.7
427,718
2. High Performance Backbone “HP Backbone” Loans a.
On April 10, 2002, the Company entered into a “Loan Agreement” with Citibank N.A. Arranger and Citibank International plc Agent, which was supported by an export
credit guarantee of Hermes Kreditversicherungs AG Lender and Guarantor, providing a total facility of US23.4 million.
The facility was obtained to finance up to 85 of the cost of supplies and services sourced in Germany relating to the design, manufacture, construction, installation and testing of
high performance backbone networks in Sumatra pursuant to the “Partnership Agreement” dated November 30, 2001, with PT Pirelli Cables Indonesia and PT Siemens Indonesia for
the construction and provision of a high performance backbone in Sumatra. The lender required a fee of 8.4 of the total facility. This fee is paid twice during the
agreement period, 15 of the fee is required to be paid in cash and 85 is included in the loan balance.
