PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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46. RELATED PARTY INFORMATION continued
c. Indosat continued
The Company has been handling customer billings and collections for Indosat. Indosat is gradually taking over the activities and performing its own direct billing and collection. The
Company receives compensation from Indosat computed at 1 of the collections made by the Company beginning January 1, 1995, plus the billing process expenses which are fixed at a
certain amount per record.
Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to GSM mobile cellular customers. The principal matters covered by
the agreement are as follows:
i. Telkomsels GSM mobile cellular telecommunications network is connected to Indosats international gateway exchanges to make outgoing or receive incoming international calls
through Indosats international gateway exchanges. ii. Telkomsel’s GSM mobile cellular telecommunications network is connected to Indosat’s
mobile cellular telecommunications network, enabling Telkomsel’s cellular subscribers to make outgoing calls to or receive incoming calls from Indosat’s cellular subscribers.
iii. Telkomsel receives as compensation for the interconnection, a specific percentage of Indosats revenues from the related services which are made through Indosats international
gateway exchanges and mobile cellular telecommunications network. iv. Billings for calls made by Telkomsel’s customers are handled by Telkomsel. Telkomsel is
obliged to pay Indosats share of revenue regardless whether billings to customers have been collected.
v. The provision and installation of the necessary interconnection equipment is Telkomsel’s responsibility. Interconnection equipment installed by one of the parties in another party’s
locations shall remain the property of the party installing such equipment. Expenses incurred in connection with the provision of equipment, installation and maintenance are borne by
Telkomsel.
Telkomsel also has an agreement with Indosat on the usage of Indosats telecommunications facilities. The agreement, which was made in 1997 and is valid for eleven years, is subject to
change based on an annual review and mutual agreement by both parties. The charges for the usage of the facilities amounted to Rp9,741 million and Rp9,205 million in 2005 and 2006,
respectively, reflecting 0.1 and 0.1 of total operating expenses in 2005 and 2006, respectively. Other agreements between Telkomsel and Indosat are as follows:
i. Agreement on Construction and Maintenance for Jakarta-Surabaya Cable System J-S Cable System.
On October 10, 1996, Telkomsel, Lintasarta, Satelindo and Indosat the “Parties” entered into an agreement on the construction and maintenance of the J-S Cable System. The Parties
have formed a management committee which consists of a chairman and one representative from each of the Parties to direct the construction and operation of the cable system. The
construction of the cable system was completed in 1998. In accordance with the agreement, Telkomsel shared 19.325 of the total construction cost. Operating and maintenance costs
are shared based on an agreed formula.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 98
46. RELATED PARTY INFORMATION continued
