Revenues Total revenues increased by Rp6,729 billion, or 8.1, from
2. Expenses Total expenses increased by Rp3,695 billion, or 6.8,
from Rp54,005 billion in 2012 to Rp57,700 billion in 2013. The increase in expenses was attributable primarily due to increases in operations, maintenance and telecommunication services, depreciation and amortization also general and administrative expenses. These expenses are further explained below: a. Operations, Maintenance and Telecommunication Services Expenses Operations, maintenance and telecommunication services expenses increased by Rp2,529 billion, or 15.1, from Rp16,803 billion in 2012 to Rp19,332 billion in 2013. The increase in operations, maintenance and telecommunication services expenses was attributable by the following: - An increase in operations and maintenance of Rp1,655 billion, or 18.4, due to a decrease in expenses associated with increasing the capacity of receiver and transmission stations and Telkomsel’s broadband services. - Cost of IT services increased by Rp455 billion, or 205.0, from Rp222 billion in 2012 to Rp677 billion in 2013. This increase was primarily due to the increase in integration system expenses. - Electricity, gas and water expenses increased by Rp184 billion, or 20.9, from Rp879 billion in 2012 to Rp1,063 billion in 2013, due to an increase in electricity expenses due to increasing number of our BTS and network for Telkomsel’s broadband services and electricity tariff. The above increases were offset by insurance expenses decreased by Rp297 billion, or 44.3, from Rp671 billion in 2012 to Rp374 billion in 2013 due to no satellite insurance payment for Telkom-3. Our total operations, maintenance and telecommunication services expenses accounted for 33.5 of our consolidated expenses for the year ended December 31, 2013, compared to 31.1 for the year ended December 31, 2012. 127 2014 Annual Report PT Telkom Indonesia Tbk Persero b. Depreciation and Amortization Expenses Depreciation and amortization expenses increased by Rp1,324 billion, or 9.2, from Rp14,456 billion in 2012 to Rp15,780 billion in 2013 primarily due to increased in depreciation expense by Rp1,476 billion, or 10.8, from Rp13,635 billion in 2012 to Rp15,109 billion in 2013. The increase in depreciation expense primarily related to depreciation of transmission installation and equipment amounting to Rp1,065 billion, or 14.0, and an increase of loss in impairment of Rp349 billion, or 141.3, compare to prior year. c. Personnel Expenses Personnel expenses decreased by Rp53 billion, or 0.5, from Rp9,786 billion in 2012 to Rp9,733 billion in 2013 due to no early retirement programs were offered in 2013 that cause a decrease by Rp699 billion or 100.0 in early retirement program expenses. This decrease above was partially offset by an increase in salaries and related benefits by Rp296 billion or 9.1 from Rp3,257 billion in 2012 to Rp3,553 billion in 2013 and an increase in net periodic post-retirement health care benefit costs by Rp284 billion, or 315.6. d. Interconnection Expenses Interconnection expenses increased by Rp260 billion, or 5.6, from Rp4,667 billion in 2012 to Rp4,927 billion in 2013 primarily due to an increase of Rp256 billion, or 7.4, in domestic interconnection and transit interconnection expenses, in line with an increase of 13.5 in domestic interconnection and transit revenues. e. Marketing Expenses Marketing expenses decreased by Rp50 billion, or 1.6, from Rp3,094 billion in 2012 to Rp3,044 billion in 2013 primarily due to a decrease in advertising and promotion expenses by Rp93 billion, or 3.8, due to using selective media for promotion and increasing group synergy. f. General and Administrative Expenses General and administrative expenses increased by Rp1,119 billion, or 36.9, from Rp3,036 billion in 2012 to Rp4,155 billion in 2013 due in part to an increase in provision for impairment of receivables by Rp674 billion, or 73.7.0, from Rp915 billion in 2012 to Rp1,589 billion in 2013. This increase primarily resulted from current year individual and collective assessment for impairment of receivables. The increased also contribute by a 59.1 increased in training, education and recruitment by Rp153 billion and a 28.1 increased by Rp148 billion in general expenses. This increase above was partially offset by a 34.1 decreased in social contribution expenses by Rp44 billion, or 34.4. g. Gain loss on Foreign Exchange – net Loss on foreign exchange - net increased by Rp60 billion, from Rp189 billion in 2012 to Rp249 billion in 2013. The increase was primarily due to the appreciation of the US Dollar by 26.3. h. Other expenses Other expenses decreased by Rp1,493 billion, from Rp1,973 billion in 2012 to Rp480 billion in 2013. The decrease primarily related to derecognition in 2012 of the carrying value of the Telkom-3 Satellite, which was built and launched, but failed to reach usable orbit, amounting to Rp1,606 billion. 3. Operating Profit and Operating Profit Margin As a result of the foregoing, operating profit increased by Rp2,148 billion, or 8.4, from Rp25,698 billion in 2012 to Rp27,846 billion in 2013. Operating profit margin increased from 33.3 in 2012 to 33.6 in 2013. 4. Profit before Income Tax and Pre - Tax Margin As a result of the foregoing, profit before income tax increased by Rp2,921 billion, or 12.1, from Rp24,228 billion in 2012 to Rp27,149 billion in 2013. Pre - tax margin increased from 31.4 in 2012 to 36.7 in 2013. 128 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE SParts
» Telkomsel Double Digit Revenue Growth Indonesia Digital Network IDN 2015 International Expansion
» Parenting Strategy : Strategic guidance
» Shareholders with Ownership More Than 5 MainControlling Shareholder
» Ownership of Stocks by Directors and Commissioners
» Shareholders with Less than 5 Ownership
» Proportion of Common Stock Held in Indonesia and Abroad List of the 20 Biggest Public Shareholders
» Employee Stock Ownership Program
» Chronology of Bonds Purchases of Equity Securities by The Issuer and Affiliated Purchasers
» Sekretariat of President AR TELKOM 2014 ENG
» Director Human Capital AR TELKOM 2014 ENG
» Director of Consumer Service
» Directorate of Wholesale International Business Service
» Director of Innovations AR TELKOM 2014 ENG
» Direktur Enterprise Business AR TELKOM 2014 ENG
» Director of Finance AR TELKOM 2014 ENG
» Department of Corporate AR TELKOM 2014 ENG
» Internal Auditor AR TELKOM 2014 ENG
» Department of Project AR TELKOM 2014 ENG
» Finance Billing Collection Center FBCC
» Human Capital Center AR TELKOM 2014 ENG
» Telkom Corporate University Center
» Supply Center AR TELKOM 2014 ENG
» Innovation Design Center IDeC
» Community Development Center CDC
» Human Resource Assessment Service Assesment Center
» ITSS Division AR TELKOM 2014 ENG
» Enterprise Service Division AR TELKOM 2014 ENG
» Business Service Division AR TELKOM 2014 ENG
» Wholesale Service Division AR TELKOM 2014 ENG
» Broadband Division AR TELKOM 2014 ENG
» Wireless Broadband Division AR TELKOM 2014 ENG
» Network of Broadband Division
» Witel of Central Java of Eastern North
» Witel of Southern Central Java
» Witel Yogyakarta AR TELKOM 2014 ENG
» Witel of Central Java of Eastern South
» Regional Division V East Java
» Witel of East Java of Central East
» Witel of East Java of Southern East
» Witel of Central East Borneo
» Witel of Northern East Borneo
» Witel of Southern East Borneo
» Regional Division VII Eastern Indonesia Area
» Witel of SouthSulawesi AR TELKOM 2014 ENG
» Witel of Western South Sulawesi
» Witel of North Sulawesi North Maluku
» Witel of Maluku AR TELKOM 2014 ENG
» Witel of Papua AR TELKOM 2014 ENG
» PT Telekomunikasi Selular Telkomsel
» PT Telekomunikasi Indonesia Internasional Telin
» Telin Singapore AR TELKOM 2014 ENG
» Telin Hong Kong AR TELKOM 2014 ENG
» Telin Timor-Leste AR TELKOM 2014 ENG
» Telkom Australia AR TELKOM 2014 ENG
» Telkom Macau AR TELKOM 2014 ENG
» Telkom Taiwan AR TELKOM 2014 ENG
» Telin Malaysia AR TELKOM 2014 ENG
» Telkom USA AR TELKOM 2014 ENG
» Telin Branch Office in Myanmar
» PT Multimedia Nusantara Metra
» PT Infrastruktur Telekomunikasi Indonesia
» PT Dayamitra Telekomunikasi Mitratel
» PT Infomedia Nusantara AR TELKOM 2014 ENG
» PT MD Media AR TELKOM 2014 ENG
» PT Sigma Cipta Caraka Telkom Sigma
» PT Administrasi Medika AdMedika
» PT Finnet Indonesia AR TELKOM 2014 ENG
» PT Melon Indonesia AR TELKOM 2014 ENG
» Telkom Property PT Graha Sarana Duta
» PT Telkom Akses AR TELKOM 2014 ENG
» Fixed Wireline Services AR TELKOM 2014 ENG
» Fixed Broadband AR TELKOM 2014 ENG
» Cellular Services AR TELKOM 2014 ENG
» Fixed Wireless Services AR TELKOM 2014 ENG
» Interconnection Services AR TELKOM 2014 ENG
» Network Services AR TELKOM 2014 ENG
» Satellite AR TELKOM 2014 ENG
» Platform Services, which includes Managed
» Digital Advertising is a commercial service for the
» Contact centers AR TELKOM 2014 ENG
» Partnership Stores AR TELKOM 2014 ENG
» Authorized dealers and retail outlets
» Account Management Teams AR TELKOM 2014 ENG
» Telkom Solution Houses AR TELKOM 2014 ENG
» SME Centers AR TELKOM 2014 ENG
» Social Media AR TELKOM 2014 ENG
» Liabilities dan Equity a. Current Liabilities
» Revenues Total revenues increased by Rp6,729 billion, or 8.1, from
» Expenses Total expenses increased by Rp3,693 billion, or 6.4,
» Net Income per Share Net income per share increased by Rp2,4, or 1.6, from
» Revenues Total revenues increased by Rp5,824 billion, or 7.5,
» Expenses Total expenses increased by Rp3,695 billion, or 6.8,
» Income Tax Expense Income tax expense decreased by Rp993 billion, or
» Profit for the Year Attributable to Owners of the Parent Company
» Cash Flows from Operating Activities Net cash provided by operating activities in 2014 was
» Cash Flows from Investing Activities Net cash flows used in investing activities in 2014 was
» Cash Flows from Financing Activities Net cash flows used in financing activities was Rp10,083
» Cash Flows from Operating Activities Net cash provided by operating activities in 2013 was
» Cash Flows from Investing Activities Net cash flows used in investing activities in 2013 was
» Internal Liquidity Sources To fulfill our obligations, we rely primarily on our internal
» External Liquidity Sources Our primary external sources of liquidity are short and
» Outstanding Liquidity Sources We had undrawn loan facilities which include the following
» Purpose of the Commitment As of December 31, 2014, we had material commitments
» Source of Funds We have historically funded our capital expenditures
» Denomination of Currency As of December 31, 2014, details of material commitment
» Planned Actions to Mitigate Foreign Exchange Risks
» Expansion - On January 16, 2014, we establish 100 ownership
» Acquisition - On September 25, 2014, Telkom Australia Telin through
» Employee benefits Under PSAK, the actuarial gains or losses are recognized
» Land rights Under PSAK, land rights are recorded as part of property
» Related party transactions Under Bapepam - LK OJK Regulation No. VIII.G.7
» Indonesian Taxation DebtCapital Restructure
» Dividends Dividends declared by us out of retained earnings and
» Capital Gains The sale or transfer of common stock through the IDX
» Stamp Duty Stock transactions in Indonesia are subject to stamp
» Threshold Passive Foreign Investment Company “PFIC” Classification Matters
» Dividends Any cash distributions paid by us out of earnings and
» PFIC Considerations If we were to be classified as a PFIC in any taxable year,
» Backup Withholding Tax and Information Reporting Requirements
» Telecommunications Law AR TELKOM 2014 ENG
» Telecommunications Regulators AR TELKOM 2014 ENG
» C l a ss i f i c at i o n a n d L i ce n s i n g o f Telecommunications Providers
» Introduction of Competition in the Indonesian Telecommunications Industry
» DLD Services AR TELKOM 2014 ENG
» IDD Services AR TELKOM 2014 ENG
» Limited Mobility Wireless Services
» Interconnection AR TELKOM 2014 ENG
» Consumer Protection AR TELKOM 2014 ENG
» Telecommunication Regulatory Charges AR TELKOM 2014 ENG
» Telecommunications Towers AR TELKOM 2014 ENG
» Telkom’s Shareholders AR TELKOM 2014 ENG
» Realization of General Meeting of Shareholders GMS
» President Director as CEO of Telkom Group
» Director of Network, IT Solution “NITS”
» Director of Human Capital Management “HCM”
» Director of Wholesale International Service “WINS”
» Nomination and Remuneration Committee The composition of the Nomination and Remuneration
» Audit Committee The composition of the Audit Committee as determined
» The Planning and Risk Evaluation and Monitoring Committee “KEMPR”
» Nomination and Remuneration Committee Duties and responsibilities of the Nomination and
» The Audit Committee Based on the Audit Committee Charter, in general, the
» Report of the Nomination and Remuneration Committee in 2014
» Report of the Audit Committee in 2014
» Corporate Strategic Scenario “CSS” KEMPR has monitored the implementation of RJPP CSS
» Annual Business Budget Plan In carrying RKAP 2014, the Board of Commissioners has
» Enterprise Risk Management “Enterprise Risk Management”
» Measures of Directors that require approval from the Board of Commissioners
» Work Meeting KEMPR In 2014 KEMPR held 10 committee meetings.
» Bayu Katon Management Report On Internal Control Over Financial Reporting
» Efforts to provide value added to the management of the company
» Enterprise Risk Management ERM Telkom realizes that risk management is an integral part
» Political and Social Risks Current political and social events in Indonesia may
» Macro Economic Risks AR TELKOM 2014 ENG
» Disaster Risks AR TELKOM 2014 ENG
» Risks Related to Our Business
» Operational Risks A material failure in the continuing operations of our
» Financial Risks We are exposed to interest rate risk
» Legal and Compliance Risks If we are found liable for price fixing by the Indonesian
» Regulation Risks We operate in a legal and regulatory environment that
» Risks Related to Our Fixed Telecommunication Business
» Competition Risks Related to Our Cellular Business Telkomsel
» QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
» Foreign Exchange Controls Indonesia operates a liberal foreign exchange system
» Exchange Rate Risk We are exposed to foreign exchange risk on sales,
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