PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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46. RELATED PARTY INFORMATION
In the normal course of business, the Company and its subsidiaries entered into transactions with related parties. It is the Companys policy that the pricing of these transactions be the same as those of
arms-length transactions.
The following are significant agreementstransactions with related parties:
a. Government of the Republic of Indonesia
i. The Company obtained “two-step loans” from the Government of the Republic of Indonesia,
the Companys majority stockholder. Interest expense for two-step loans amounted to Rp254,014 million and Rp298,258 million
in 2005 and 2006, respectively. Interest expense for two-step loan reflected 27.7 and 34.6 of total interest expense in 2005 and 2006, respectively.
ii. The Company and its subsidiaries pay concession fees for telecommunications services provided and radio frequency usage charges to the Ministry of Communications formerly,
Ministry of Tourism, Post and Telecommunications of the Republic of Indonesia. Concession fees amounted to Rp499,880 million and Rp363,340 million in 2005 and 2006,
respectively. Concession fees reflected 2.9 and 1.8 of total operating expenses in 2005 and 2006, respectively. Radio frequency usage charges amounted to Rp441,980 million and
Rp243,688 million in 2005 and 2006, respectively. Radio frequency usage charges reflected 2.6 and 1.2 of total operating expenses in 2005 and 2006, respectively.
iii. Beginning in 2005, the Company and its subsidiaries pay Universal Service Obligation
“USO” charges to the Ministry of Communications and Information “MoCI” of the Republic of Indonesia pursuant to the MoCI Regulation No.15PERM.KOMINFO92005
of September 30, 2005.
USO charges amounted to Rp279,699 million in 2006, which reflected 1.4 of total operating expenses in 2006.
b. Commissioners and Directors Remuneration
i. The Company and its subsidiaries provide honorarium and facilities to support the operational duties of the Board of Commissioners. The total of such benefits amounted to
Rp14,045 million and Rp15,030 million in 2005 and 2006, respectively, which reflected 0.1 and 0.1 of total operating expenses in 2005 and 2006, respectively.
ii. The Company and its subsidiaries provide salaries and facilities to support the operational
duties of the Board of Directors. The total of such benefits amounted to Rp39,425 million and Rp64,167 million in 2005 and 2006, respectively, which reflected 0.2 and 0.3 of
total operating expenses in 2005 and 2006, respectively.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 96
46. RELATED PARTY INFORMATION continued
