F-44 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 5. CASH AND CASH EQUIVALENTS continued
Interest rates per annum on time deposits are as follows:
2012 2013
Rupiah 2.25 - 8.50
1.00 - 11.50 Foreign currencies
0.05 - 3.50 0.03 - 3.00
The related parties in which the Group places its funds are state-owned banks. The Group placed a majority of its cash and cash equivalents in these banks because they have the most extensive branch networks in Indonesia and
are considered to be financially sound banks, as they are owned by the State.
Refer to Note 35 for details of related party transactions.
6. OTHER CURRENT FINANCIAL ASSETS 2012
2013
Time deposits Related parties
BRI 1,650
1,000 Others
- 22
Sub-total 1,650
1,022 Third parties
SCB 1,350
1,859 Bank CIMB Niaga
- 1,800
OCBC NISP 1,000
1,600 Others
- 7
Sub-total 2,350
5,266 Total time deposits
4,000 6,288
Available-for-sale financial assets Related parties
Government 123
133 State-owned enterprises
68 74
PT Bahana Securities “Bahana” 48
- Others
19 17
Sub-total 258
224 Third parties
52 48
Total available-for-sale financial assets 310
272 Derivative asset - Put Option
- 297
Others 28
15
Total 4,338
6,872
As of December 31, 2012 and 2013, time deposits denominated in foreign currency amounted to Rp nil and Rp59 billion, respectively.
The time deposits have maturities of more than three months but not more than one year, with interest rates as follows:
2012 2013
Rupiah 6.25 - 6.75
1.60 - 10.50 Foreign currency
- 1.00 - 1.10
Refer to Note 35 for details of related party transactions.
F-45 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 7. TRADE AND OTHER RECEIVABLES
Trade and other receivables as of December 31, 2012 and 2013 consist of:
2012 2013
Trade receivables 7,270
8,898 Provision for impairment of receivables
2,047 2,872
Net 5,223
6,026 Other receivables
190 403
Provision for impairment of receivables 4
8 Net
186 395
Total trade and other receivables 5,409
6,421
Trade receivables arise from services provided to both retail and non-retail customers, with details as follows: a. By debtor
i Related parties
2012 2013
State-owned enterprises 549
877 Government agencies
683 842
Indonusa -
180 PT Indosat Tbk “Indosat”
55 48
CSM 51
45 Patrakom
56 -
Others 62
241 Total
1,456 2,233
Provision for impairment of receivables 72
555
Net 1,384
1,678
In 2013, Patrakom became a subsidiary Notes 1d and 3.
ii Third parties
2012 2013
Individual and business subscribers 5,494
6,168 Overseas international carriers
320 497
Total 5,814
6,665 Provision for impairment of receivables
1,975 2,317
Net 3,839
4,348
Trade receivables from certain parties are presented net of the Group’s liabilities to such parties due to the existence of a legal right of set-off in accordance with the agreements with those parties.
F-46 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 7. TRADE AND OTHER RECEIVABLES continued
b. By age i Related parties
2012 2013
Up to 6 months 1,125
1,477 7 to 12 months
248 317
More than 12 months 83
439 Total
1,456 2,233
Provision for impairment of receivables 72
555
Net 1,384
1,678
ii Third parties
2012 2013
Up to 3 months 3,286
3,965 More than 3 months
2,528 2,700
Total 5,814
6,665 Provision for impairment of receivables
1,975 2,317
Net 3,839
4,348
iii Aging of total trade receivables
2012 2013
Provision for impairment
Provision for impairment
Gross of receivables
Gross of receivables
Not past due 3,174
140 3,618
10 Past due up to 3 months
1,250 157
1,525 401
Past due more than 3 to 6 months 455
193 703
321 Past due more than 6 months
2,391 1,557
3,052 2,140
Total 7,270
2,047 8,898
2,872
The Group has made provision for impairment of trade receivables based on the collective assessment of historical impairment rates and individual assessment of its customers’ credit history. The Group does not
apply a distinction between related party and third party receivables in assessing amounts past due. As of December 31, 2012 and 2013, the carrying amount of trade receivables of the Group considered past due
but not impaired amounted to Rp2,189 billion and Rp2,418 billion, respectively. Management believes that receivables past due but not impaired, along with trade receivables that are neither past due nor impaired, are
due from customers with good credit history and are expected to be recoverable.
F-47 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 7. TRADE AND OTHER RECEIVABLES continued
c. By currency i Related parties
2012 2013
Rupiah 1,369
2,203 U.S. dollar
87 30
Total 1,456
2,233 Provision for impairment of receivables
72 555
Net 1,384
1,678
ii Third parties
2012 2013
Rupiah 5,087
5,857 U.S. dollar
722 806
Euro 3
1 Hong Kong dollar
2 1
Total 5,814
6,665 Provision for impairment of receivables
1,975 2,317
Net 3,839
4,348
d. Movements in the provision for impairment of receivables
2012 2013
Beginning balance 1,732
2,047 Provision recognized during the year Note 30
848 1,589
Receivables written-off 533
622 Acquisition
- 1
Divestment -
158 Reversal
- 15
Ending balance 2,047
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 Rp1,700 billion have been pledged as collateral under
lending agreements Notes 18 and 19. Refer to Note 35 for details of related party transactions.
F-48 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 8. INVENTORIES
2012 2013
Components 183
272 SIM cards, RUIM cards, set top boxes and blank prepaid vouchers
134 102
Others 410
157 Total
727 531
Provision for obsolescence Components
51 21
SIM cards, RUIM cards, set top boxes and blank prepaid voucher 1
1 Others
96 -
Total 148
22
Net 579
509
Movements in the provision for obsolescence are as follows:
2012 2013
Beginning balance 106
148 Divestment
- 1
Provision reversal recognized during the year 67
29 Reclassification
- 96
Inventories written-off 25
-
Ending balance 148
22
The inventories recognized as expense and included in operations, maintenance and telecommunication service expenses Note 29 for the years ended December 31, 2011, 2012 and 2013 amounted toRp818 billion, Rp633
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 subsidiaries amounting to Rp53 billion have been pledged as collateral under lending agreements Notes 18 and 19.
As of December 31, 2012 and 2013, modules and components with book value amounting to Rp272 billion and Rp280 billon, respectively, which are held by the Group have been insured against fire, theft and other specific risks.
Modules are recorded as part of property and equipment. Total sum insured as of December 31, 2012 and 2013 amounted to Rp275 billion and Rp261 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses on inventories arising from the insured risks.
F-49 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 9. ADVANCES AND PREPAID EXPENSES
2012 2013
Frequency license Notes 38c.i and 38c.ii 2,563
2,330 Prepaid rental
666 744
Advances 120
297 Salaries
165 209
Deferred expense 45
124 Insurance
18 84
Others each below Rp50 billion 144
149
Total 3,721
3,937
Refer to Note 35 for details of related party transactions.
10. ASSET HELD FOR SALE