PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
111
42. CONTINGENCIES continued
Due to the filing of case by operators in various courts, the KPPU subsequently requested the Supreme Court SC to consolidate the cases into the Central Jakarta District Court. Based on the
SC’s decision letter dated April 12, 2011, the SC appointed the Central Jakarta District Court to investigate and resolve the case.
As of the issuance date of the consolidated financial statements, there has not been any notification on the case from the court.
b. The Company is a defendant in a case filed in Makassar District Court by Andi Jindar Pakki and
his affiliates over a land property on Jl. A.P. Pettarani. On May 8, 2013, the court pronounced its verdict and ordered the Company to pay fair compensation or to vacate and surrender the
disputed land to the plaintiffs.
On May 20, 2013 the Company filed an appeal to the Makassar High Court, objecting to the District Court’s ruling. In December 2013, the Makassar High Court pronounced its verdict that is
favorable to the plaintiffs and the Company filed an appeal to the Supreme Court. As of the issuance date of the consolidated financial statements, no decision has been reached on the
appeal.
43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
2013 Rupiah
U.S. dollar Japanese yen
Others equivalent
in millions in millions
in millions in billions
Assets Cash and cash equivalents
394.30 1.23
11.42 4,940
Other current financial assets 10.78
- -
131 Trade receivables
Related parties 2.44
- -
30 Third parties
66.27 -
0.17 808
Other receivables 0.68
- 0.13
10 Advances and other non-current assets
5.76 -
- 70
Total assets 480.23
1.23 11.72
5,989
Liabilities Trade payables
Related parties 1.40
- -
17 Third parties
275.35 -
4.33 3,409
Other payables 7.62
- 0.09
94 Accrued expenses
51.41 18.63
0.01 629
Short-term bank loan -
- -
- Advances from customers and suppliers
1.60 -
0.01 20
Current maturities of long-term liabilities 34.85
767.90 -
514 Promissory notes
28.67 -
- 349
Long-term liabilities - net of current maturities 78.82
7,678.98 -
1,850 Total liabilities
479.72 8,465.51
4.44 6,882
Liabilities - net 0.51
8,464.28 7.28
893 2012
Rupiah U.S. dollar
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
Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
112
43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued
2012 Rupiah
U.S. dollar Japanese yen
Others equivalent
in millions in millions
in millions in billions
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. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the 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 December 31, 2013 using the exchange rates on February 28, 2014, the unrealized foreign exchange
gain will increase by Rp13 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 to
minimize losses 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 on time deposit placements and hedging to cover foreign currency risk exposures for periods ranging from 3 up to 12 months.
Financial risk management is carried out by the Corporate Finance unit under policies approved by the Board of Directors. The Corporate Finance unit 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. dollar and Japanese yen. The Company and
subsidiaries’ exposures 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 the effects of the exchange rates on time deposits
and receivables in foreign currencies that are equal to at least 25 of the outstanding current liabilities.