PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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23. NOTES AND BONDS continued
b. Medium-term Notes
continued During the period when the Notes are outstanding, the Company should comply with all covenants
or restrictions including maintaining financial ratios as follows:
1. Debt service coverage ratio should exceed 1.5:1 2. Debt to equity ratio should not exceed 2:1
3. Debt to EBITDA ratio should not exceed 3:1
As of June 30, 2006, the Company complied with the covenants.
24. BANK LOANS
The details of long-term bank loans as of June 30, 2005 and 2006 are as follows:
2005 2006
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
88.8 867,114
117.6 1,089,517
Citibank N.A. US
113.3 74.2
721,867 50.8
471,929 EUR
73.4 44.0
516,473 29.3
346,935 Rp
500,000.0 -
- -
200,000 Bank Central Asia
Rp 573,000.0
114,791.0 114,791
- 257,395
Consortium of banks Rp
150,000.0 96,032.0
96,032 -
53,748 Bank Mandiri
Rp 82,425.0
36,305.0 36,305
- 303,416
Bank Niaga Rp
12,800.0 9,291.0
9,291 -
8,205 Bank Bukopin
Rp 5,300.0
- -
- 4,553
Lippo Bank Rp
18,500 -
- -
13,801 Total
2,361,873 2,749,499
Current maturities of bank loans 535,437
844,425 Long-term portion
1,826,436 1,905,074
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 51a.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 June 30, 2005 and 2006, principal outstanding amounted to US88,8 million Rp867,114 million and
US117.6 million Rp1,089,517 million, respectively.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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24. BANK LOANS
continued b. Citibank
N.A.
1. Hermes Export Facility
On December 2, 2002, pursuant to the partnership agreement with Siemens Aktiengesellschaft AG Note 51a.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.
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 June 30, 2005 and
3.33 as of June 30, 2006. Interest is payable semi-annually, starting on the utilization date of the Facility May 29, 2003.
As of June 30, 2005 and 2006, the outstanding balance was EUR44.0 million Rp516,473 million and EUR29.3 million Rp346,935 million, respectively.
The schedule of the principal payments on this long-term loan as of June 30, 2006 is as follows:
Amount EUR
Rupiah Year
in millions Equivalent
2006 7.3
86,734 2007
14.7 173,467
2008 7.3
86,734 29.3
346,935
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
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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agreement period, 15 of the fee is required to be paid in cash and 85 is included in the loan balance.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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24. BANK LOANS continued
