PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content
5. TRADE RECEIVABLES continued
d. Movements in the provision for impairment of receivables
2016 2015
Beginning balance 3,048
3,096 Provision recognized during the yearNote 25
743 1,010
Receivables written off 801
1,058
Ending balance 2,990
3,048
The receivables written off relate to both relatedparty and thirdparty trade receivables. Management believes that the provision for impairment of trade receivables is adequate to cover
losses on uncollectible trade receivables. As of December 31, 2016, certain trade receivables of the subsidiaries amounting to
Rp4,550billion have been pledged as collateral under lending agreements Notes 15, 16b and 16c. Refer to Note 31 for details of related party transactions.
6. INVENTORIES 2016
2015
Components 299
342 SIM cards, set top boxes, and blank prepaid vouchers
168 131
Others 164
96 Total
631 569
Provision for obsolescence Components
18 14
SIM cards, set top boxes and blank prepaid vouchers 29
27 Others
Total 47
41
Net 584
528
Movements in the provisionfor obsolescence are as follows:
2016 2015
Beginning balance 41
43 Provision recognized during the year
11 2
Inventory written off 5
4
Ending balance 47
41
The inventoriesrecognized
as expense
andincluded in
operations, maintenance,
andtelecommunication service expenses as of December 31,2016 and 2015amounted to Rp2,105billion and Rp1,937billion, respectivelyNote 24.
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 Rp256billion have been pledged as collateral under lending agreements Notes 15, 16b and 16c.
As of December 31, 2016 and 2015, modules and components held by the Group with book value amounting to Rp199 billion and Rp219billion, respectively,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, 2016 and2015 amounted to Rp220 billion and Rp291 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of inventories arising from the insured risks.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content
7. ADVANCES AND PREPAID EXPENSES 2016
2015
Frequency license Notes 34c.i and 34c.ii 3,056
2,935 Prepaid rental
1,234 1,055
Advances 394
729 Salaries
229 347
Advance to employee 32
28 Others
301 745
Total 5,246
5,839
Refer to Note 31for details of related party transactions.
8. LONG-TERM INVESTMENTS
