PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 37
7. TRADE ACCOUNTS
RECEIVABLE continued
c. By Currency Related parties
2005 2006
Rupiah 511,251
787,461 United States Dollar
59,402 10,031
Total 570,653
797,492 Allowance for doubtful accounts
129,618 101,991
Net 441,035
695,501 Third parties
2005 2006
Rupiah 3,371,288
3,419,426 United States Dollar
230,530 274,071
Total 3,601,818
3,693,497 Allowance for doubtful accounts
591,933 657,172
Net 3,009,885
3,036,325
d. Movements in the allowance for doubtful accounts
2005 2006
Beginning balance 522,066
685,668 Additions
401,174 340,189
Bad debts write-off 201,689
266,694 Ending balance
721,551 759,163
Management believes that the allowance for doubtful receivables is adequate to cover probable losses on uncollectible accounts.
Except for the amounts receivable from Government Agencies, management believes that there are no significant concentrations of credit risk on these receivables.
Refer to Note 46 for details of related party transactions.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 38
8. INVENTORIES
2005 2006
Components 62,904
50,700 Allowance for obsolescence
13,276 9,092
Net 49,628
41,608 Modules
94,597 106,812
Allowance for obsolescence 39,248
43,064 Net
55,349 63,748
SIM cards, RUIM cards and prepaid voucher blanks 107,394
82,608 Allowance for obsolescence
256 190
Net 107,138
82,418 Total
212,115 187,774
Movements in the allowance for obsolescence are as follows:
2005 2006
Beginning balance 53,719
48,347 Additions
787 4,048
Inventory write-off 1,726
49 Ending balance
52,780 52,346
Management believes that the allowance is adequate to cover probable losses from decline in inventory value due to obsolescence.
At September 30, 2006, inventory held by a certain subsidiary was insured against fire, theft and other specified risks for US0.6 million. Management believes that the insurance amount is adequate to
cover such risks.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 39
9. PREPAID EXPENSES
