PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
131
50. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued
December 31, 2010 September 30, 2011
Foreign Foreign
currencies Rupiah
currencies Rupiah
in millions equivalent
in millions equivalent
Liabilities Trade payables
Related parties U.S. Dollars
5.73 51,559
0.53 4,669
Third parties U.S. Dollars
341.80 3,074,585
405.81 3,578,923
Euro 0.18
2,128 1.36
16,315 Malaysian Ringgit
0.56 1,624
0.56 1,543
Singapore Dollars 0.24
1,645 0.09
591 Australian Dollars
0.05 453
0.02 149
Great Britain Pound sterling 0.04
613 0.01
83 Japanese Yen
0.73 81
0.51 58
Hongkong Dollars 0.01
17 -
- Swiss Franc
0.00 15
- -
Other payables U.S. Dollars
0.07 588
0.10 890
Accrued expenses U.S. Dollars
39.72 357,343
45.75 403,506
Euro 0.85
10,136 6.42
76,703 Singapore Dollars
1.38 9,657
2.66 18,097
Japanese Yen 38.35
4,250 117.98
13,513 Australian Dollars
- -
0.00 40
Advances from customers and suppliers U.S. Dollars
0.90 8,114
1.52 13,364
Euro -
- 0.17
2,019 Current maturities of long-term liabilities
U.S. Dollars 78.11
703,474 60.07
529,220 Japanese Yen
767.90 85,099
767.90 87,955
Notes U.S. Dollars
30.54 275,348
65.37 575,278
Long-term liabilities U.S. Dollars
240.76 2,168,061
244.29 2,152,670
Japanese Yen 9,982.67
1,106,279 9,598.72
1,099,437
Total liabilities 7,861,069
8,575,023 Net liabilities
5,553,196 5,671,874
As of December 31, 2010, the net monetary liabilities position denominated in foreign currencies of the Company and its subsidiaries is US500.55 million and JPY10,789.26 million. As of September
30, 2011, the net monetary liabilities position denominated in foreign currencies of the Company and its subsidiaries is US509.40 million and JPY10,483.96 million.
The Company and its subsidiaries’ activities expose them to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates and interest
rates.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
132
50. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued
If the Company and its subsidiaries report monetary assets and liabilities in foreign currencies as of September 30, 2011 using the rates on October 27, 2011, the unrealized foreign exchange loss will
increase by the amount of Rp.60,336 million.
51. FINANCIAL ASSETS AND LIABILITIES
1. Financial risk management The Company and its subsidiaries’ activities expose it to a variety of financial risks such as
market risks including foreign exchange risk and interest rate risk, credit risk and liquidity risk. Overall, the Company and subsidiaries’ financial risk management programme is intended for
minimizing lossess on the financial assets and liabilities arising from fluctuation of foreign currency exchange rate and the fluctuation of interest rate. Management provides written policy
for foreign currency risk management mainly through time deposits placements and hedging to cover foreign currency risk exposures for the time range of 3 up to 12 months.
Financial risk management is carried out by the Treasury Management unit under policies approved by the Board of Directors. The Treasury Management unit identifies, evaluates and
hedges financial risks.
a. Foreign exchange risk The Company and its subsidiaries have significant receivables, payables and liabilities
balance denominated in foreign currencies which include the United States Dollar, Japanese Yen, Euro, Singapore Dollar and Great Britain Pound sterling. Increasing risks of foreign
currency exchange rates on the obligations of the Company and its subsidiaries are expected to be offset by time deposits and receivables in foreign currencies are set at least 25 of the
liabilities and will mature in less than 1 one year with respect to the tendency of changes exchange rates in the future.
b. Interest rate risk Interest rate fluctuation is monitored to minimize any negative impact to financial position.
Borrowings at variable interest rates expose the Company and its subsidiaries to interest rate risk Notes 18,20,21 and 22. To measure market risk fluctuations in interest rates, the
Company and its subsidiaries primarily use interest margin and maturity profile of the financial assets and liabilities based on changing schedule of the interest rate.
The following table represents a breakdown of the Company and subsidiaries’ financial assets and liabilities which are impacted by interest rates.
