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
49
11. PROPERTY AND EQUIPMENT continued
January 1, December 31,
2012 Additions Impairments Deductions Reclassifications
2012 Accumulated depreciation and
impairment losses: Directly acquired assets
Buildings 1,671
130 -
62 1,739
Leasehold improvements 502
63 -
3 47
609 Switching equipment
17,412 2,065
- 1,112
1,260 17,105
Telegraph, telex, and data communication equipment
17 -
- 1
16 Transmission installation
and equipment 35,169
6,894 153
988 18
41,210 Satellite, earth station, and
equipment 4,135
517 94
- 62
4,684 Cable network
16,952 1,057
- 238
480 17,291
Power supply 4,916
1,221 -
59 96
5,982 Data processing equipment
6,189 1,001
- 165
670 6,355
Other telecommunications peripherals
353 5
- -
99 259
Office equipment 523
61 -
14 22
548 Vehicles
74 6
- 4
15 61
Other equipment 98
5 -
- 1
102
Leased assets
Transmission installation and equipment
270 514
- 2
- 782
Data processing equipment 217
51 -
- 7
261 Office equipment
9 4
- -
6 7
Vehicles 47
1 -
48 -
- CPE assets
9 2
- -
- 11
RSA assets:
Switching equipment 33
6 -
- 2
41 Transmission installation
and equipment 18
2 -
- 8
12 Cable network
175 28
- -
4 199
Other telecommunications peripherals
1 -
- -
1 Total
88,790 13,633
247 2,633
2,762 97,275
Net Book Value 74,897
77,047
a. Gain on disposal or sale of property and equipment
2013 2012
Proceeds from sale of property and equipment 55
25 Net book value
19 7
Exchange of property and equipment - net -
111
Gain on disposal or sale of property and equipment 36
129
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
50
11. PROPERTY AND EQUIPMENT continued
b. Assets impairment i
As of December 31, 2012, the Cash Generating Unit CGUs that independently generate cash inflows were fixed wireline, fixed wireless, cellular and others. As of December 31,
2012, there were indications of impairment in the fixed wireless CGU presented as part of personal segment, which was mainly due to increased competition in the fixed wireless
market and that has resulted in lower average tariffs, declining active customers and declining Average Revenue Per User “ARPU”. The Company assessed the recoverable
value of the assets in the CGU and determined that assets for the fixed wireless CGU were impaired amounting to Rp247 billion at December 31, 2012 and being recognized in the
consolidated statement of comprehensive income under “Depreciation and amortization”. The recoverable amount has been determined based on value-in-use VIU calculations.
These calculations used pre-tax cash flow projections approved by management covering a five-year period and with cash flows beyond the five-year period extrapolated using a
perpetuity growth rate. The cash flow projections reflect management’s expectations of revenue, Earning before Interest, Tax, Depreciation and Amortization “EBITDA” growth and
operating cash flows on the basis that the fixed wireless CGU generates positive net cash flows from 2013. Management’s cash flow projection also incorporates management’s
reasonable expectations for developments in macro economic conditions and market expectations for the Indonesian telecommunications industry. As of December 31, 2012,
management applied a pre-tax discount rate of 12.3, derived from the Company’s post-tax weighted average cost of capital and benchmarked to externally available data. As of
December 31, 2012, the perpetuity growth rate used of 0.5, assumes that subscriber numbers may continue to increase after five years, while average revenue per user may
decline such that the long-term growth will not be significant.
If the performance of the fixed wireless CGU continues to decline or if management’s initiatives are not performing as expected in the next financial year, analysis will be required
to assess whether there will be further impairment next year. ii Management believes that there is no indication of impairment in the value of other CGUs as
of December 31, 2012. c. Others
i Interest capitalized to property under construction amounted to Rp62 billion and Rp44 billion
for nine months period ended September 30, 2013 and for the years ended December 31, 2012, respectively. The capitalization rate used to determine the amount of borrowing costs
eligible for capitalization is ranging from 0.00-9.75 and 7.72-9.75 for for nine months period ended September 30, 2013 and for the years ended December 31, 2012,
respectively.
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
51
11. PROPERTY AND EQUIPMENT continued
