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
41
8. LONG-TERM INVESTMENTS continued
2015 Percentage
of ownership Beginning
balance Additions
Deductions Share of net
loss profit of associated
company Dividend
Share of other comprehensive
income of associated
company Ending
balance Long-term investments in
associated companies:
Tiphone
a
24.65 1,392
- 32
18 2
1,404 Indonusa
b
20.00 221
- -
- -
221 Teltranet
c
51.00 52
43 24
- -
71 Melon
d
51.00 43
- 7
- -
50 ILCS
e
49.00 38
- 2
- -
40 Telin Malaysia
f
49.00 6
19 19
- 6
CSM
g
25.00 -
- -
- -
- Sub-total
1,752 62
2 18
2 1,792
Other long-term investments 15
- -
- -
15
Total long-term investments 1,767
62 2
18 2
1,807
Summarized financial information of the Group’s investments accounted under the equity method for
2015:
Tiphone Indonusa
Teltranet Melon
ILCS Telin Malaysia
CSM
Statements of financial position Current assets
6,539 501
117 131
105 18
185 Non-current assets
1,261 333
58 27
32 10
1,221 Current liabilities
1,657 535
35 57
54 17
731 Non-current liabilities
3,073 568
1 2
1 -
1,535
Equity deficit 3,070
269 139
99 82
11 860
Statements of profit or loss and other comprehensive
income Revenues
22,060 599
201 111
6 164
Operating expenses 21,295
559 72
184 108
40 364
Other income expenses including finance costs -
net 265
82 9
2 3
74 Profit loss before tax
500 42
63 19
3 37
274 Income tax expense
130 -
16 5
- -
Profit loss for the year 370
42 47
14 3
37 274
Other comprehensive income loss
7 -
- -
-
Total comprehensive income for the year
363 42
47 14
3 37
274
a
Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as for celullar phone including spare parts, accessories, pulse reload vouchers, repair service and
content provider through its subsidiaries. On September 18, 2014, the Company through PINS acquired 25 ownership in Tiphone for Rp1,395 billion.
As of December 31, 2016 and 2015, the fair value of investment amounting to Rp1,500 billion and Rp1,351 billion, respectively. The fair value was calculated by multiplying number of shares by the published price quotation as of December 31, 2016 and
2015 amounting to Rp855 and Rp770 per share, respectively. Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of
December 31, 2016 and 2015 is as follows:
2016 2015
Assets 8.452
7,800 Liabilities
5.010 4,730
Net assets 3,442
3,070 Group’s proportionate share of net assets 24.43 in 2016 and 24.65 in 2015
841 757
Goodwill 647
647 Carrying amount of long-term investment
1,488 1,404
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
42
8. LONG-TERM INVESTMENTS continued
b
Indonusa had been a subsidiary of the Company until 2013 when the Company disposed 80 of its interest in Indonusa. On May 14, 2014, based on the Circular Resolution of the Stockholders of Indonusa as covered by notarial deed No. 57
dated April 23, 2014 of FX Budi Santoso Isbandi, S.H., which was approved by the MoLHR in its Letter No. AHU-
02078.40.20.2014 dated April 29, 2014, Indonusa’s stockholders approved an increase in its issued and fully paid capital by Rp80 billion. The Company has waived its right to own the new shares issued and transferred it to Metra and, as a
result, Metra’s ownership in Indonusa increased to 4.33.
c
Investment in Teltranet is accounted for under the equity method, which covered by an agreement between Metra and Telstra Holding Singapore Pte. Ltd. dated August 29, 2014. Teltranet is engaged in communication system services. Metra does not
have control as it does not determine the financial and operating policies of Teltranet.
d
Melon previously was an associate. In 2016, the Company purchased Melon 52 stake through Metranet, thus becoming a consolidated subsidiary Note 1d.
e
ILCS is engaged in providing E-trade logistic services and other related services.
f
Telin Malaysia is engaged in telecommunication services in Malaysia.
g
CSM is engaged in providing Very Small Aperture Terminal “VSAT”, network application services and consulting services on telecommunications technology and related facilities. The unrecognized share of losses of CSM for the year ended
December 31, 2016 dan 2015 amounting to Rp219 billion and Rp215 billion, respectively.
9. PROPERTY AND EQUIPMENT
January 1, 2016
Acquisition Additions
Deductions Reclassifications
Translations December 31,
2016 At cost:
Directly acquired assets
Land rights 1,270
89 59
1 -
1,417 Buildings
6,033 10
311 3
1,486 7,837
Leasehold improvements 1,036
- 13
37 104
1,116 Switching equipment
19,823 -
218 160
609 20,490
Telegraph, telex and data communication equipment
876 -
751 41
- 1,586
Transmission installation and equipment 119,047
- 2,603
11,319 11,221
121,552 Satellite, earth station and equipment
8,146 -
80 -
219 8,445
Cable network 37,887
- 6,746
302 460
44,791 Power supply
13,822 -
161 77
1,116 15,022
Data processing equipment 11,351
12 318
82 916
12,515 Other telecommunications peripherals
632 -
73 -
5 700
Office equipment 1,062
5 139
12 259
1,453 Vehicles
475 -
60 147
1 387
Other equipment 99
- 1
- -
100 Property under construction
4,580 -
17,169 -
17,199 4,550
Assets under finance lease
Transmission installation and equipment 5,940
- 229
815 -
5,354 Data processing equipment
63 -
77 56
- 84
Vehicles 94
- 63
22 -
135 Office equipment
73 -
3 -
- 76
CPE assets 22
- -
- -
22 Power supply
90 -
125 -
- 215
RSA assets 252
- -
- -
252 Total
232,673 116
29,199 13,074
815 248,099
January 1, 2016
Acquisition Additions
Deductions Reclassifications
Translations December 31,
2016 Accumulated depreciation and impairment
losses: Directly acquired assets
Buildings 2,141
- 290
2 6
2,435 Leasehold improvements
623 -
106 37
- 692
Switching equipment 15,223
- 1,588
160 1
16,650 Telegraph, telex and data communication
equipment 4
- 329
- -
333 Transmission installation and equipment
63,063 -
9,957 10,686
32 62,302
Satellite, earth station and equipment 6,706
- 415
- 23
7,098 Cable network
19,524 -
1,534 302
455 20,301
Power supply 9,114
- 1,145
70 25
10,164 Data processing equipment
8,503 -
1,067 62
40 9,468
Other telecommunications peripherals 385
- 77
- 1
461 Office equipment
713 -
141 11
3 846
Vehicles 166
- 69
66 1
168 Other equipment
99 -
- -
- 99
Assets unde finance lease
Transmission installation and equipment 2,327
- 542
815 -
2,054 Data processing equipment
53 -
47 56
- 44
Vehicles 13
- 19
- -
32 Office equipment
51 -
43 -
- 94
CPE assets 17
- 2
- -
19 Power supply
18 -
80 -
- 98
RSA assets 230
- 13
- -
243 Total
128,973 -
17,464 12,267
569 133,601
Net Book Value 103,700
114,498