PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
42
8. LONG-TERM INVESTMENTS continued
Summarized financial information of the Group’s investments accounted
under the equity method for 2015:
Telin Tiphone Indonusa
Teltranet Melon
ILCS Malaysia
CSM
Statements of financial position Current assets
6,364 186
117 131
105 18
185 Non-current assets
765 471
58 27
32 10
1,221 Current liabilities
1,257 850
35 57
54 17
731 Non-current liabilities
3,056 103
1 2
1 -
1,535
Equity deficit 2,816
296 139
99 82
11 860
Statements of profit or loss and other comprehensive income
Revenues 22,040
599 -
89 41
3 164
Operating expenses 21,290
608 21
82 43
17 364
Other income expenses including finance costs - net
249 37
6 2
- 74
Profit loss before tax 501
46 15
9 2
14 274
Income tax expense 130
19 -
- -
- -
Profit loss for the year 371
65 15
9 2
14 274
Using financial information as of December 31, 2015 and for the year then ended.
a
Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as for celullar phone including spare parts, accessories, pulse reload vouchers,
repair service and content provider through its subsidiaries. On September 18, 2014, the Company through PINS acquired 25 ownership in Tiphone for Rp1,395 billion.
As of June 30, 2016 and December 31, 2015, the fair value of investment amounting to R1,184 billion and Rp1,351 billion, respectively. The fair value was calculated by multiplying number of shares by the published price quotation as of June 30,
2016 and December 31, 2015 amounting to Rp675 and Rp770 per share, respectively. Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of
December 31, 2015 is as follows:
December, 31 2015
Assets 7,129
Liabilities 4,313
Net assets 2,816
Group’s proportionate share of net assets 24.65 in 2015
694 Goodwill
710 Carrying amount of long-term investment
1,404
b
Indonusa had been a subsidiary of the Company until 2013 when the Company disposed 80 of its interest in Indonusa. On May 14, 2014, based on the Circular Resolution of the Stockholders of Indonusa as covered by notarial deed No. 57
dated April 23, 2014 of FX Budi Santoso Isbandi, S.H., which was approved by the MoLHR in its Letter No. AHU-
02078.40.20.2014 dated April 29, 2014, Indonusa’s stockholders approved an increase in its issued and fully paid
capital by Rp80 billion. The Company has waived its right to own the new shares issued and transferred it to Metra and, as a result,
Metra’s ownership in Indonusa increased to 4.33.
c
Investment in Teltranet is accounted for under the equity method, which covered on an agreement between Metra and Telstra Holding Singapore Pte. Ltd. on August 29, 2014. Teltranet is engaged in communication system services. Metra does not
have control as it does not determine the financial and operating policies of Teltranet.
d
Melon is engaged in providing Digital Content Exchange Hub services “DCEH”. Metra does not have control over Melon due
to the existence of substantive participating rights held by the other venturer over the financial and operating policies of Melon.
e
ILCS is engaged in providing E-trade logistic services and other related services.
f
Telin Malaysia is engaged in telecommunication services in Malaysia.
g
CSM is engaged in providing Very Small Aperture Terminal “VSAT”, network application services and consulting services on telecommunications technology and related facilities. The unrecognized share of losses of CSM for the year ended December
31, 2015 amounting to Rp215 billion.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
43
9. PROPERTY AND EQUIPMENT
January 1, Reclassifications
June 30, 2016
Additions Deductions Translations
2016 At cost:
Directly acquired assets
Land rights 1,270
3 -
- 1,273
Buildings 6,033
2 2
261 6,294
Leasehold improvements 1,036
54 7
28 1,111
Switching equipment 19,823
107 9
245 20,166
Telegraph, telex and data communication equipment 876
502 -
- 1,378
Transmission installation and equipment 119,047
720 1,495
5,832 124,104
Satellite, earth station and equipment 8,146
44 -
45 8,235
Cable network 37,887
2,062 110
602 40,441
Power supply 13,822
19 35
467 14,273
Data processing equipment 11,351
28 40
594 11,933
Other telecommunications peripherals 632
4 -
- 636
Office equipment 1,062
75 3
20 1,154
Vehicles 475
17 -
- 492
Other equipment 99
- -
- 99
Property under construction 4,580
9,805 -
8,862 5,523
Assets under finance lease
Transmission installation and equipment 5,940
240 68
17 6,129
Data processing equipment 63
- 39
13 11
Office equipment 73
2 -
- 75
Vehicles 94
48 -
- 142
CPE assets 22
- -
- 22
Power supply 90
- -
- 90
RSA assets 252
- -
- 252
Total 232,673
13,732 1,808
764 243,833
January 1, Reclassifications
June 30, 2016
Additions Deductions
Translations 2016
Accumulated depreciation and impairment losses:
Directly acquired assets
Buildings 2,141
100 -
54 2,295
Leasehold improvements 623
62 7
7 685
Switching equipment 15,223
744 9
4 15,954
Telegrap, telex and data communication equipment 4
- -
- 4
Transmission installation and equipment 63,063
4,840 1,355
263 66,285
Satellite, earth station and equipment 6,706
157 -
1 6,862
Cable network 19,524
758 110
374 19,798
Power supply 9,114
595 31
4 9,682
Data processing equipment 8,503
608 40
12 9,059
Other telecommunications peripherals 385
37 -
- 422
Office equipment 713
60 3
24 794
Vehicles 166
34 -
1 201
Other equipment 99
- -
- 99
Assets under finance lease
Transmission installation and equipment 2,327
291 68
7 2,557
Data processing equipment 53
4 39
6 12
Office equipment 51
26 -
2 75
Vehicles 13
9 -
- 22
CPE assets 17
1 -
- 18
Power supply 18
11 -
- 29
RSA assets 230
7 -
- 237
Total 128,973
8,344 1,662
565 135,090
Net Book Value 103,700
108,743