PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
103
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued b. Borrowings and other credit facilities continued
ii Telkomsel has US3 million bond and bank guarantee and standby letter of credit facilities with SCB, Jakarta. The facilities expire on July 31, 2017. Under these facilities, as of
December 31, 2016, Telkomsel has issued a bank guarantee of Rp20 billion equivalent to US1.5 million for a 3G performance bond Note 34c.i. The bank guarantee is valid until
March 24, 2016. As of the date of approval and authorization for issuance of these consolidated financial statements, the bank guarantee has not been extended.
Telkomsel has a Rp500 billion bank guarantee facility with BRI. The facility will expire on September 25, 2017. Under this facility, as of June 30, 2017, Telkomsel has issued a bank
guarantee of Rp472 billion equivalent to US35 million as payment for commitment guarantee for annual right of usage fee valid until March 31, 2018 and Rp20 billion equivalent
to US1.5 million for a 3G performance guarantee valid until April 1, 2018.
Telkomsel has a Rp150 billion bank guarantee facility with BCA. The facility will expire on April 15, 2018.
Telkomsel has also a Rp100 billion bank guarantee facility with BNI. The facility will expire on December 11, 2017. Telkomsel uses this facility to replace the time deposit required as
guaranty for the USO program amounting to Rp52 billion Note 34c.iv.
On January 18, 2017, pursu ant to the expiry of the 2015’s overdraft agreement, the Company
and Deutsche Bank agreed to extend the agreement for total facilities up to Rp 750 billion which valid until December 31, 2017. The Company used this facility for overdraft and bank
guarantees.
iii TII has a US15 million bank guarantee from Bank Mandiri. The facility will expire on December 18, 2017. The outstanding bank guarantee facility as of June 30, 2017 amounting
to US10 million equivalent to Rp134 billion.
c. Others
i 3G license With
reference to
the Decision
Letters No.
07PERM.KOMINFO22006, No. 268KEPM.KOMINFO92009 and No. 191 year 2013 of the MoCI Note 2i, Telkomsel is
required, among other things, to: 1. Pay an annual BHP fee which is calculated based on a certain formula over the license term
10 years as set forth in the Decision Letters. The BHP is payable upon receipt of the notification letter “Surat Pemberitahuan Pembayaran” from the DGPI. The BHP fee is
payable annually up to the expiry date of the license. 2. Provide roaming access for the existing other 3G operators.
3. Contribute to USO development.
4. Construct a 3G network which covers at least 14 provinces by the sixth year of holding
the 3G license.
5. Issue a performance bond each year amounting to Rp20 billion or 5 of the annual fee to
be paid for the subsequent year, whichever is higher.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
104
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
i Radio Frequency Usage Based on the Decree No. 76 dated December 15, 2010 of the Government of the Republic of
Indonesia, which amended Decree No. 7 dated January 16, 2009, the annual frequency usage fees for bandwidths of 800 Megahertz “MHz”, 900 MHz and 1800 MHz are determined using
a formula set forth in the Decree. The Decree is applicable for 5 years unless further amended. As an implementation of the above Decree, the Company and Telkomsel paid the first to fifth
year annual frequency usage fees for 2010 to 2014. Based on Decision letter No. 983 issued in 2015, the MoCI determined that the sixth year Y6,
2015 annual frequency usage fee of Telkomsel was Rp 2,398 billion. The fee was paid in December 2015.
On July 6, 2015, Telkomsel received Decision Letter No. 644 Year 2015 dated June 30, 2015, of the MoCI, which replaced Decision Letter No. 42 Year 2014 dated January 29, 2014, whereby
the MoCI granted Telkomsel the rights to provide: i Mobile telecommunication services with radio frequency bandwidth in the 800 MHz,
900 MHz and 1800 MHz bands; ii Mobile telecommunication services IMT-2000 with radio frequency bandwidth in the
2.1 GHz bands 3G; and iii Basic telecommunication services.
Conditional Business Transfer Agreement “CBTA” In order to maximize business opportunities within the group synergy, the Company
restructured its fixed wireless business unit by transferring its fixed wireless business and subscribers to Telkomsel. On June 27, 2014, the Company signed a CBTA with Telkomsel to
transfer such business and subscribers to Telkomsel Notes 4, 9b, 31.
Based on Decision Letter No. 934 dated September 26, 2014, the MoCI approved the transfer of the Company’s frequency usage license on radio frequency spectrum of 800 MHz,
specifically on spectrum of 880 - 887.5 MHz paired with 925 - 932.5 MHz, to Telkomsel. Telkomsel can use the radio frequency spectrum since the date the Decision Letter was issued.
During the transition period, the Company is still able to use the radio frequency spectrum of 880 - 887.5 MHz paired with 925 - 932.5 MHz at the latest until December 14, 2014.
Based on MoCI Decision letter No. 807KOMINFOOJ-SOPI.4SP.03.03102016 dated October 13, 2016, the migration process of frequency spectrum of 800 MHz has been
completed and Telkomsel is able to use the frequency spectrum nationwide.
Accordingly, the Company and Telkomsel agreed that the CBTA has been completed on October 21, 2016.
iii Future minimum lease payments under operating lease The Group entered into non-cancelable lease agreements with both third and related parties.
The lease agreements cover leased lines, telecommunication equipment and land and building with terms ranging from 1 to 10 years and with expiry dates between 2017 and 2026. Periods
may be extended based on the agreement by both parties.
