COMMITMENTS continued d. Others continued
50. CONTINGENCIES continued
e. The Commission for the Supervision of Business Competition “Komisi Pengawasan Persaingan Usaha” or “KPPU” on its letter dated December 5, 2007, notified Telkomsel that based on its investigation of case No. 07KPPU-L2007 dated November 19, 2007, according to the applied provisions regarding allegation of violating Law No. 51999, “Prohibition of Monopolistic Practice and Unfair Business Competition” the “Law”, related to a cross-ownership by Temasek Holdings and monopoly practices by Telkomsel, it had decided that, among others things : • Telkomsel had violated article 17.1 of the Law, • Telkomsel had not been proven to violate article No. 25.1 of the Law, • Temasek Holdings and certain affiliated companies were instructed to release their ownership either in Indosat or Telkomsel with the following conditions: Maximum 5 of total shares for each buyer, The buyer is not associated with Temasek Holdings. • Telkomsel was to be charged a penalty of Rp25,000 million and instructed Telkomsel to discontinue the imposition of high tariffs and reduce its tariffs by at least 15. On December 19, 2007, Telkomsel’s management filed an objection with the Court. On May 9, 2008 the court has pronounced its verdict and concluded among other things: • Telkomsel had violated article 17.1 of the Law, • Telkomsel had not been proven to violate article 25.1.b of the Law, • Temasek Holdings and certain affiliated companies were instructed to release their ownership in either Indosat or Telkomsel or to decrease its ownership by 50 in each of those companies within twelve months from the date of the decision become final and legally binding at the following conditions: Maximum 10 of total shares for each buyer, The buyer is not associated with Temasek Holdings. • Telkomsel was charged a penalty of Rp.15 billion, • The court revoked the decision of KPPU on the instruction to reduce the tariffs because KPPU did not have the authority to determine the tariffs. On May 22, 2008, Telkomsel has filed an appeal to Indonesian Supreme Court. On September 12, 2008, the Supreme Court, through its press release, has announced to reject the appeal. As of the issuance date of the consolidated financial statements, no formal decision has been reach on the appeal. f. Certain subscribers of Telkomsel and Indosat which are domiciled in Bekasi and Tangerang and subscribers of PT Excelcomindo Pratama “Excelcomindo” which are domiciled in Tangerang, represented by the law firms, have filed class-action lawsuits with the courts against Telkomsel, the Company, Indosat, the Government, Temasek Holdings and certain of its affiliated companies “Parties”. The Parties are alleged to have had excessive price practices that potentially could have adversely affected those subscribers. On July 8, 2008, class-action lawsuits with the Bekasi District Courts against Telkomsel by certain subscribers has been revoked and the case is closed. As of the issuance date of the consolidated financial statements, certain of the lawsuits are still being processed by the courts. The Telkomsel’s management believes that Telkomsel has applied tariffs in accordance with prevailing regulations, accordingly, such allegation has no strong basis. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 11950. CONTINGENCIES continued
Parts
» GENERAL a. Establishment and general information
» GENERAL continued a. Establishment and general information continued
» Company’s officers and employees
» Public offering of shares of the Company
» Subsidiaries GENERAL continued c. Public offering of shares of the Company continued
» GENERAL continued d. Subsidiaries continued
» Authorization of the financial statements
» Basis of preparation of financial statements
» Principles of consolidation SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» Transactions with related parties
» Acquisitions of subsidiaries SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» Inventories SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued f. Investments continued
» Prepaid expenses SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued f. Investments continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued j. Intangible assets continued
» Revenue-Sharing Arrangements RSA SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» Income tax SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued r. Employee benefits continued
» Segment information Use of estimates
» CASH AND CASH EQUIVALENTS 2007
» CASH AND CASH EQUIVALENTS continued 2007
» CASH AND CASH EQUIVALENTS continued 2007 TRADE RECEIVABLES
» TRADE RECEIVABLES continued FS30Sep08EngFinal1
» INVENTORIES 2007 FS30Sep08EngFinal1
» INVENTORIES continued FS30Sep08EngFinal1
» PREPAID EXPENSES 2007 FS30Sep08EngFinal1
» RESTRICTED TIME DEPOSITS LONG-TERM INVESTMENTS
» Patrakom LONG-TERM INVESTMENTS continued
» PSN LONG-TERM INVESTMENTS continued
» BBT LONG-TERM INVESTMENTS continued d. BMPL
» Bangtelindo LONG-TERM INVESTMENTS continued d. BMPL
» Scicom LONG-TERM INVESTMENTS continued d. BMPL
» PROPERTY, PLANT AND EQUIPMENT
» PROPERTY, PLANT AND EQUIPMENT continued
» PROPERTY, PLANT AND EQUIPMENT continued PROPERTY, PLANT AND EQUIPMENT continued
» PROPERTY, PLANT AND EQUIPMENT UNDER RSA continued
» ADVANCES AND OTHER NON-CURRENT ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
» GOODWILL AND OTHER INTANGIBLE ASSETS continued
» ESCROW ACCOUNTS FS30Sep08EngFinal1
» TRADE PAYABLES 2007 FS30Sep08EngFinal1
» ACCRUED EXPENSES 2007 FS30Sep08EngFinal1
» SHORT-TERM BANK LOANS continued
» MATURITIES OF LONG-TERM LIABILITIES
» TWO-STEP LOANS FS30Sep08EngFinal1
» TWO-STEP LOANS continued FS30Sep08EngFinal1
» NOTES AND BONDS 2007 FS30Sep08EngFinal1
» NOTES AND BONDS continued BANK LOANS
» BANK LOANS continued FS30Sep08EngFinal1
» BANK LOANS continued DEFERRED CONSIDERATION FOR BUSINESS COMBINATIONS
» DEFERRED CONSIDERATION FOR BUSINESS COMBINATIONS continued
» MINORITY INTEREST 2007 FS30Sep08EngFinal1
» CAPITAL STOCK 2007 FS30Sep08EngFinal1
» CAPITAL STOCK continued 2008 FS30Sep08EngFinal1
» TREASURY STOCK continued FS30Sep08EngFinal1
» INTERCONNECTION REVENUES 2007 FS30Sep08EngFinal1
» PERSONNEL EXPENSES 2007 FS30Sep08EngFinal1
» GENERAL AND ADMINISTRATIVE EXPENSES 2007 TAXATION continued
» TAXATION continued FS30Sep08EngFinal1
» CASH DIVIDENDS AND GENERAL RESERVE
» CASH DIVIDENDS AND GENERAL RESERVE continued PENSION AND OTHER POST-RETIREMENT BENEFITS a. Pension
» PENSION AND OTHER POST-RETIREMENT BENEFITS continued a. Pension
» The Company PENSION AND OTHER POST-RETIREMENT BENEFITS continued b. Other post-retirement benefits
» POST-RETIREMENT HEALTH CARE BENEFITS
» POST-RETIREMENT HEALTH CARE BENEFITS continued 2007
» Government RELATED PARTY TRANSACTIONS
» Indosat RELATED PARTY TRANSACTIONS continued a. Government continued
» RELATED PARTY TRANSACTIONS continued c. Indosat continued
» RELATED PARTY TRANSACTIONS continued
» RELATED PARTY TRANSACTIONS continued d. Others continued
» Cash and cash equivalents Note 5
» Temporary investments RELATED PARTY TRANSACTIONS continued d. Others continued
» 393,465 Trade receivables - net Note 6 567,612
» d. Trade receivables - net Note 6 567,612
» 40,104 Trade receivables - net Note 6 567,612
» e. Trade receivables - net Note 6 567,612
» 116,378 Trade receivables - net Note 6 567,612
» f. Trade receivables - net Note 6 567,612
» 21,044 Trade receivables - net Note 6 567,612
» g. Trade receivables - net Note 6 567,612
» 3,415 Trade receivables - net Note 6 567,612
» h. Trade receivables - net Note 6 567,612
» Trade payables Note 16 RELATED PARTY TRANSACTIONS continued
» 1,516,110 RELATED PARTY TRANSACTIONS continued
» j. RELATED PARTY TRANSACTIONS continued
» 857,037 RELATED PARTY TRANSACTIONS continued
» k. - RELATED PARTY TRANSACTIONS continued
» 3,905,478 RELATED PARTY TRANSACTIONS continued
» Accrued post-retirement health care
» 2,645,150 RELATED PARTY TRANSACTIONS continued
» o. RELATED PARTY TRANSACTIONS continued
» 8,118,300 RELATED PARTY TRANSACTIONS continued
» SEGMENT INFORMATION FS30Sep08EngFinal1
» SEGMENT INFORMATION continued FS30Sep08EngFinal1
» REVENUE-SHARING ARRANGEMENTS RSA FS30Sep08EngFinal1
» Mobile cellular telephone tariffs
» Airtime TELECOMMUNICATIONS SERVICES TARIFFS continued a. Fixed line telephone tariffs continued
» TELECOMMUNICATIONS SERVICES TARIFFS continued b. Mobile cellular telephone tariffs continued
» Interconnection with fixed line network
» Interconnection with fixed line network continued
» TELECOMMUNICATIONS SERVICES TARIFFS continued c. Interconnection tariffs continued
» Tariff for other dervices USO
» COMMITMENTS continued a. Capital expenditures continued
» COMMITMENTS continued FS30Sep08EngFinal1
» COMMITMENTS continued d. Others continued
» CONTINGENCIES FS30Sep08EngFinal1
» CONTINGENCIES continued FS30Sep08EngFinal1
» ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
» ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued
» SUBSEQUENT EVENTS FS30Sep08EngFinal1
» RECENT ACCOUNTING PRONOUNCEMENTS IN INDONESIA
» RECENT ACCOUNTING PRONOUNCEMENTS IN INDONESIA continued
» ACCOUNTS RECLASSIFICATION FS30Sep08EngFinal1
» SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN INDONESIAN GAAP AND U.S. GAAP
» SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN INDONESIAN GAAP AND
» SUMMARY OF FS30Sep08EngFinal1
» SUMMARY OF SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN INDONESIAN GAAP AND
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