PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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13. PROPERTY, PLANT AND EQUIPMENT UNDER REVENUE-SHARING ARRANGEMENTS
continued In accordance with revenue-sharing arrangements agreements, ownership rights to the property, plant
and equipment under revenue-sharing arrangements are legally retained by the investors until the end of the revenue-sharing period.
The unearned income on revenue-sharing arrangements is as follows:
2004 2005
Gross amount 1,193,697
1,007,639 Accumulated amortization:
Beginning balance 984,954
833,365 Addition Note 35
82,033 136,681
Deduction 233,622
387,891 Ending balance
833,365 582,155
Net 360,332
425,484
14. ADVANCES AND OTHER NON-CURRENT ASSETS
Advances and other non-current assets consist of:
2004 2005
Prepaid rental, non-current portion -
428,564 Advances for purchase of property, plant and equipment
1,070,065 253,123
Security deposits 28,345
30,570 Restricted cash
114,202 90,749
Deferred landrights charges 93,843
87,863 Others
65,896 55,168
Total 1,372,351
946,037
As of December 31, 2004, restricted cash represents time deposits with original maturities of more than one year held by the Company and its subsidiaries and are pledged as collateral for bank
guarantees.
As of December 31, 2005, restricted cash represents cash received from the Government relating to compensation for early termination of exclusive rights Note 29 and time deposits with original
maturities of more than one year pledged as collateral for bank guarantees.
Deferred landrights charges represent costs to extend the contractual life of the landrights which are deferred and amortized over the new contractual life.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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15. GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill and other intangible assets for the years ended December 31, 2004 and 2005 are as follows:
Other Intangible
Goodwill Assets
Total
Gross carrying amount: Balance as of December 31, 2003
106,348 6,011,406
6,117,754 Addition - acquisition of Dayamitra Note 5a
- 231,477
231,477 Addition - acquisition of KSO IV Note 5d
- 908,228
908,228 Balance as of December 31, 2004
106,348 7,151,111
7,257,459 Accumulated amortization:
Balance as of December 31, 2003 54,951
918,753 973,704
Amortization expense for 2004 21,270
851,060 872,330
Balance as of December 31, 2004 76,221
1,769,813 1,846,034
Net book value 30,127
5,381,298 5,411,425
Gross carrying amount as of December 31, 2005 106,348
7,151,111 7,257,459
Accumulated amortization: Balance as of December 31, 2004
76,221 1,769,813
1,846,034 Amortization expense for 2005
21,270 896,883
918,153 Balance as of December 31, 2005
97,491 2,666,696
2,764,187 Net book value
8,857 4,484,415
4,493,272 Weighted-average amortization period
5 years 7.97 years
Other intangible assets resulted from the acquisitions of Dayamitra, Pramindo, AWI and KSO IV, and represent the rights to operate the business in the KSO areas Note 5. Goodwill resulted from the
acquisition of GSD Note 1c. The estimated annual amortization expense relating to goodwill for the year ending December 31, 2006
is Rp8,857 million. The estimated annual amortization expense relating to other intangible assets for each of the next five years beginning from January 1, 2006 is Rp896,883 million per year.
