PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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15. GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill and other intangible assets for the years ended December 31, 2004 and 2005 are as follows:
Other Intangible
Goodwill Assets
Total
Gross carrying amount: Balance as of December 31, 2003
106,348 6,011,406
6,117,754 Addition - acquisition of Dayamitra Note 5a
- 231,477
231,477 Addition - acquisition of KSO IV Note 5d
- 908,228
908,228 Balance as of December 31, 2004
106,348 7,151,111
7,257,459 Accumulated amortization:
Balance as of December 31, 2003 54,951
918,753 973,704
Amortization expense for 2004 21,270
851,060 872,330
Balance as of December 31, 2004 76,221
1,769,813 1,846,034
Net book value 30,127
5,381,298 5,411,425
Gross carrying amount as of December 31, 2005 106,348
7,151,111 7,257,459
Accumulated amortization: Balance as of December 31, 2004
76,221 1,769,813
1,846,034 Amortization expense for 2005
21,270 896,883
918,153 Balance as of December 31, 2005
97,491 2,666,696
2,764,187 Net book value
8,857 4,484,415
4,493,272 Weighted-average amortization period
5 years 7.97 years
Other intangible assets resulted from the acquisitions of Dayamitra, Pramindo, AWI and KSO IV, and represent the rights to operate the business in the KSO areas Note 5. Goodwill resulted from the
acquisition of GSD Note 1c. The estimated annual amortization expense relating to goodwill for the year ending December 31, 2006
is Rp8,857 million. The estimated annual amortization expense relating to other intangible assets for each of the next five years beginning from January 1, 2006 is Rp896,883 million per year.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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16. ESCROW ACCOUNTS
Escrow accounts consist of the following:
2004 2005
Citibank N.A., Singapore 30,059
126,128 Bank Mandiri
6,222 6,369
36,281 132,497
a. Citibank N.A., Singapore
This escrow account with Citibank N.A., Singapore “Dayamitra Escrow Agent” was established to facilitate the payment of the Companys obligations under the Conditional Sale and Purchase
Agreement and Option Agreement entered into with the selling stockholders of Dayamitra Note 5a.
In 2004, the Company has repaid the entire obligations under the Conditional Sale and Purchase Agreement, and since then this escrow account is used to facilitate the payment of the Company’s
obligations under the Option Agreement with TMC. The escrow account earns interest at LIBOR minus 0.75 per annum, which is computed on a
daily basis. The interest income earned is included as part of the escrow funds. The remaining funds available will be transferred to the Company after all of the obligations related to the
Dayamitra transaction are satisfied.
b. Bank Mandiri The escrow account with Bank Mandiri was established by Dayamitra in relation with the credit
facilities from Bank Mandiri Note 24e.
