PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2008 AND 2009,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2008 AND 2009 Figures in tables are presented in millions of Rupiah, unless otherwise stated
10
1. GENERAL continued a. Establishment and general information continued
Pursuant to Law No. 31989 on Telecommunications effective on April 1, 1989, Indonesian legal entities are allowed to provide basic telecommunications services in cooperation with the
Company as the domestic telecommunications organizing body or “badan penyelenggara”. The Government Regulation No. 81993 relating to the provision of the telecommunications
services regulates that cooperation to provide basic telecommunications services can be in the form of a joint venture, joint operation or contractual arrangement and that the entities
cooperating with the domestic telecommunications organizing body must use the organizing body’s telecommunications networks. If the telecommunications networks are not available, the
Government Regulation requires that the cooperation be in the form of a joint venture that is capable of constructing the necessary networks. The Minister of Tourism, Post and
Telecommunication of the Republic of Indonesia “MTPT” reaffirmed the status of the Company as the organizing body for the provision of domestic telecommunication services through
two Decision Letters both dated August 14, 1995.
The provision of domestic telecommunications services of the Company, includes telephone, telex, telegram, satellite, leased lines, electronic mail, mobile communication and cellular
services. Pursuant to this, in 1995, the Company entered into agreements with investors to develop, manage and operate telecommunications facilities in five of the Company’s
seven regional divisions “Divre” under Joint Operation Schemes known as “Kerja Sama Operasi” or “KSO”, in order to:
1 accelerate the construction of telecommunication facilities, 2 make the Company a world-class operator, and
3 increase the technology as well as knowledge and skills of its employees.
Historically, the Company had exclusive right to provide local wireline and fixed wireless services for a minimum period of 15 years and the exclusive right to provide domestic long-distance
“Sambungan Langsung Jarak Jauh” or “SLJJ” telecommunications services for a minimum period of 10 years, effective January 1, 1996. Such exclusive rights also applied to
telecommunications services provided for and on behalf of the Company through a KSO. This grant of rights did not affect the Company’s right to provide other domestic telecommunications
services.
In 1999, the Government of the Republic of Indonesia the “Government” passed Telecommunications Law No. 36, which took effect in September 2000. This Law states that the
telecommunication activities cover:
1 Telecommunications networks, 2 Telecommunications services, and
3 Special telecommunications.
National state-owned companies “Badan Usaha Milik Negara” or “BUMN”, regional state-owned companies,
privately-owned companies
and cooperatives
are allowed
to provide
telecommunications networks and services. Special telecommunications can be provided by individuals, Government Agencies and legal entities other than telecommunications networks and
service providers. The Telecommunications Law prohibits activities that result in monopolistic practices and unfair competition, and expects to pave the way for market liberalization. In
connection with this Law, Government Regulation No. 522000 was issued, which provides that interconnection fees shall be charged to originating telecommunications network operators where
telecommunications service is provided by two or more telecommunications network operators.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2008 AND 2009,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2008 AND 2009 Figures in tables are presented in millions of Rupiah, unless otherwise stated
11
1. GENERAL continued a. Establishment and general information continued
