PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
38
6. INVENTORIES
September 30, 2016
December 31, 2015
Components 449
342 SIM cards, set top boxes, and blank prepaid vouchers
229 131
Others 263
96 Total
941 569
Provision for obsolescence Components
47 14
SIM cards, set top boxes and blank prepaid vouchers 27
27 Others
Total 74
41
Net 867
528
Movements in the provision for obsolescence are as follows:
September 30, 2016
December 31, 2015
Beginning balance 41
43 Provision recognized during the year
33 2
Inventory write off -
4
Ending balance 74
41
The inventories
recognized as
expense and
included in
operations, maintenance,
and telecommunication service expenses as of September 30, 2016 and 2015 amounted to Rp1,539 billion and Rp1,450 billion, respectively Note 24.
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 Rp268 billion have been pledged as collateral under lending agreements Notes 15, 16b and 16c.
As of September 30, 2016 and December 31, 2015, modules and components held by the Group with book value amounting to Rp219 billion, respectively, has been insured against fire, theft, and other
specific risks. Modules are recorded as part of property and equipment. Total sum insured as of September 30, 2016 and December 31, 2015 amounted to Rp220 billion and Rp291 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of inventories arising from the insured risks.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
39
7. ADVANCES AND PREPAID EXPENSES September 30,
2016 December 31,
2015
Prepaid rental 1,722
1,055 Frequency license Notes 35c.i and 35c.ii
1,300 2,935
Advances 611
729 Salaries
398 347
Advance to employee 132
28 Others
936 745
Total 5,099
5,839
Refer to Note 32 for details of related party transactions.
8. LONG-TERM INVESTMENTS
September 30, 2016 Percentage of
ownership Beginning
balance Additions
Deductions Share of net
loss profit of associated
company Dividend
Translation Ending
balance Long-term investments in
associated companies:
Tiphone
a
24.65 1,404
- 76
23 3
1,454 Indonusa
b
20.00 221
- -
- -
221 Teltranet
c
51.00 71
- 26
- -
45 PT Melon Indonesia
“Melon”
d
51.00 50
- 14
- -
64 PT Integrasi Logistik Cipta
Solusi “ILCS”
e
49.00 40
- -
- -
40 Telin Malaysia
f
49.00 6
5 14
- 3
- CSM
g
25.00 -
- -
- -
Sub-total 1,792
5 50
23 -
1,824 Other long-term investments
15 27
- -
- 42
Total Long-term investments
1,807 32
50 23
- 1,866
Summarized financial information of the Group’s investments accounted under the equity method for 2016:
Tiphone Indonusa
Teltranet Melon
ILCS Telin Malaysia
CSM
Statements of financial position Current assets
6,374 284
55 186
127 2
185 Non-current assets
749 444
84 20
21 15
1,221 Current liabilities
1,123 797
51 79
65 33
731 Non-current liabilities
3,058 276
- 1
1 -
1,535
Equity deficit
2,942 345
88 126
82 16
860 Statements of profit or loss and
other comprehensive income
Revenues 12,886
455 33
224 64
4 164
Operating expenses 12,131
505 97
199 63
32 364
Other income expenses including finance costs -
net 448
- 4
3 -
- 74
Profit loss before tax 307
50 68
28 1
28 274
Income tax expense 77
- 17
- -
- -
Profit loss for the year
230 50
51 28
1 28
274 Other comprehensive
income loss 11
- -
- -
- -
Total comprehensive income for the year
219 50
51 28
1 28
274
Using financial information as of June 30, 2016 and for the period then ended. Using financial information as of December 31, 2015 and for the year then ended.
