PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
111
43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued
December 31, 2012 in millions Rupiah
U.S. Dollars Japanese Yen
Others equivalent
in millions in millions
in millions in billions
Assets Cash and cash equivalents
412.69 1.33
6.38 4,042
Other current financial assets 7.17
- -
69 Trade receivables
Related parties 9.03
- -
87 Third parties
74.89 -
0.44 727
Other receivables 1.20
- 0.06
12 Advances and other non-current assets
9.89 -
- 95
Total assets 514.87
1.33 6.88
5,032 Liabilities
Trade payables Related parties
1.49 -
- 14
Third parties 320.34
- 2.41
3,120 Other payables
0.92 -
0.13 10
Accrued expenses 75.07
32.87 3.00
759 Short-term bank loans
0.42 -
- 4
Advances from customers and suppliers 0.80
- 0.20
10 Current maturities of long-term liabilities
30.75 767.90
- 383
Promissory notes 68.62
- -
661 Long-term liabilities - net of current maturities
112.84 8,446.87
- 2,035
Total liabilities 611.25
9,247.64 5.74
6,996
Liabilities - net 96.38
9,246.31 1.14
1,964
Assets and liabilities denominated in other foreign currencies are presented as U.S. Dollars equivalents using the exchange rates prevailing at end of the reporting period.
The Company and subsidiaries’ activities expose them to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates and interest
rates. If the Company and subsidiaries report monetary assets and liabilities in foreign currencies as of
September 30, 2013 using the exchange rates on October 23, 2013, the unrealized foreign exchange gain will decrease by Rp84 billion.
44. FINANCIAL RISK MANAGEMENT
1. Financial risk management The Company and subsidiaries activities expose them to a variety of financial risks such as market
risks including foreign exchange risk and interest rate risk, credit risk and liquidity risk. Overall, the Company and subsidiaries’ financial risk management program is intended for minimizing lossess on
the financial assets and financial liabilities arising from fluctuation of foreign currency exchange rates and the fluctuation of interest rates. Management has a written policy for foreign currency risk
management mainly through time deposits placements and hedging to cover foreign currency risk exposures for periods ranging from 3 up to 12 months.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
112
44. FINANCIAL RISK MANAGEMENT continued
1. Financial risk management continued Financial risk management is carried out by the Corporate Finance unit under policies approved
by the Board of Directors. The Corporate Finance identifies, evaluates and hedges financial risks.
a. Foreign exchange risk The Company and subsidiaries are exposed to foreign exchange risk on sales, purchases and
borrowings that are denominated in foreign currencies. The foreign currency denominated transactions are primarily in U.S. Dollars and Japanese Yen. The Company and subsidiaries
exposure to other foreign exchange rates are not material.
Increasing risks of foreign currency exchange rates on the obligations of the Company and subsidiaries are expected to be offset by time deposits and receivables in foreign currencies
that are equal to at least 25 of the outstanding current liabilities.
The following table presents the Company and subsidiaries’ financial assets and financial liabilities exposure to foreign currency risk:
September 30, 2013 December 31, 2012
U.S. Dollars Japanese Yen U.S. Dollars Japanese Yen
in billions in billions in billions in billions
Financial assets 0.46
0.51 0.00
Financial liabilities 0.59
8.93 0.61
9.25
Net exposure 0.13
8.93 0.10
9.25
Sensitivity analysis
A strengthening of the U.S. Dollars and Japanese Yen, as indicated below, against the Rupiah at September 30, 2013 would have decreased equity and profit or loss by the
amounts shown below. This analysis is based on foreign currency exchange rate variances that the Company and subsidiaries considered to be reasonably possible at the reporting
date. The analysis assumes that all other variables, in particular interest rates, remain constant.
Equityprofit loss September 30, 2013
14 U.S. Dollars 1 strengthening
45 Japanese Yen 5 strengthening
A weakening of the U.S. Dollars and Japanese Yen against the Rupiah at September 30, 2013 would have had an equal but opposite effect on the above currencies to
the amounts shown above, on the basis that all other variables remain constant.
