PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited
Figures in tables are expressedin billions of rupiah, unless otherwise stated
45
6. TRADE RECEIVABLES continued
c. By currency continued ii Third parties
June 30, December 31,
2014 2013
Rupiah 8,452
6,699 U.S.dollar
849 806
Euro 1
1 Hong Kong dollar
1 1
Australian dollar 1
- Total
9,303 7,507
Provision for impairment of receivables 2,709
2,381
Net 6,594
5,126
d. Movements in the provision for impairment of receivables
June 30, December 31,
2014 2013
Beginning balance 2,872
2,047 Provision recognized during the year Note 29
329 1,589
Receivables written-off 1
622 Acquisition
- 1
Disposal Note 3 -
158 Reclassification
15
Ending balance 3,200
2,872
The receivables written off are 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. Certain trade receivables of the subsidiaries amounting to Rp1,576 billion have been pledged as
collateral under lending agreements Notes 17 and 21. Refer to Note 37 for details of related party transactions.
7. INVENTORIES June 30,
December 31, 2014
2013
Components 525
272 SIM cards, RUIM cards, set top box, and
blank prepaid vouchers 140
102 Others
403 157
Total 1,068
531 Provision for obsolescence
Components 24
21 SIM cards, RUIM cards, set top box, and
blank prepaid vouchers 1
1 Total
25 22
Net 1,043
509
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited
Figures in tables are expressedin billions of rupiah, unless otherwise stated
46
7. INVENTORIES continued
Movements in the provisionfor obsolescence are as follows:
June 30, December 31,
2014 2013
Beginning balance 22
148 Provision reversal recognized during the year
3 29
Divestment Note 3 -
1 Reclassification
- 96
Ending balance 25
22
The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses Note 28 as of June 30, 2014 and December 31, 2013
amounted to Rp338 billion and Rp752 billion, respectively. Management believes that the provision is adequate to cover losses from declines in inventory value
due to obsolescence. Certain inventories of the Company’s subsidiaries amounting to Rp35 billion have been pledged as
collateral under lending agreements Notes 17 and 21. As of June 30, 2014 and December 31, 2013, modules and components held by the Company and
subsidiaries have been insured against fire, theft, and other specific risks with book value amounting to Rp63 billion and Rp280 billion, respectively. Modules are recorded as part of property and
equipment. Total sum insured as of June 30, 2014 and December 31, 2013 amounted to Rp251 billion and Rp261 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of certain inventories which happens to the Company and subsidiaries.
8. ADVANCES AND PREPAID EXPENSES
June 30, December 31,
2014 2013
Frequency license Notes 41c.i and 41c.ii 1,480
2,330 Prepaid rental
1,097 744
Salaries 615
209 Advances
356 297
Deferred expense 96
124 Insurance
3 84
Others each below Rp50 billion 322
159
Total 3,969
3,947
Refer to Note 37 for details of related party transactions.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited
Figures in tables are expressedin billions of rupiah, unless otherwise stated
47
9. ASSET HELD FOR SALE
This account represents the carrying amount of Telkomsel’s equipment to be exchanged with equipment of Nokia Siemens Network Oy “NSN Oy” and PT Huawei Tech Investment
“PT Huawei”. The equipment will be used as part of the settlement for the exchanges of equipment from these companies.
In 2014, Telkomsel’s equipment with net carrying amount of Rp57 billion is reclassified to asset held for sale Note 11c.vi.
Asset held for sale is presented under personal segment Note 38.
10. LONG-TERM INVESTMENTS
June 30, 2014 Share of
net loss Percentage
profit of of
Beginning Addition associated Translation Ending
ownership balance
deduction company adjustment
balance Long-term
investments in associated
companies: Indonusaa
20.00 189
32 -
221 PT Melon Indonesia
“Melon”
b
51.00 39
- 2
- 41
ILCS
c
49.00 37
- 5
- 32
Telin Malaysia
d
49.00 18
- 10
2 6
CSM
e
25.00 -
- -
- -
PSN
f
22.38 -
- -
- -
Sub-total 283
32 13
2 300
Other long-term investments 21
- -
- 21
Total long-term investments 304
32 13
2 321
June 30, 2014 Assets
Liabilities Revenue
Gain loss Long-term investments in
associated companies:
Indonusa 537
706 183
Melon
b
124 43
61 4
ILCS
c
83 15
65 10
Telin Malaysia
d
18 2
5 20
CSM
e
1,273 1,387
153 91
PSN
f
784 2,050
76 11
Total 2,819
3,904 543
128