PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
continued
DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED
Figures in tables are presented in millions of Rupiah, unless otherwise stated
99
44. RELATED PARTY TRANSACTIONS
continued
c. Indosat continued
ii. Telkomsel’s and Indosat’s GSM mobile cellular telecommunications networks are interconnected to allow cross-network communications among their subscribers.
iii. In exchange for these interconnections, Indosat is entitled to a certain amount as
compensation. iv.
Interconnection equipment installed by one of the parties in another party’s premises 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.
The Company and its subsidiaries were earned interconnection income from Indosat of Rp.257,461 million and Rp.202,703 million for three months period ended March 31, 2010 and
2011, respectively, representing 1.6 and 1.2 of the total operating revenues for each period.
The Company and its subsidiaries were charged interconnection charges from Indosat of Rp.225,474 million and Rp.194,464 million for three months period ended March 31, 2010 and
2011, respectively, representing 2.0 and 1.7 of the total operating expenses for each period.
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 annual review and mutual agreement by both parties. In 2009, the agreement was renewed for 5 five years through April 1, 2014. The charges for the usage of the facilities
amounted to Rp.5,561 million and Rp.844 million for three months period ended March 31, 2010 and 2011, respectively, representing 0.05 and 0.01 of the total operating expenses for each
period.
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, PT Satelit Palapa Indonesia “Satelindo” and
Indosat the “Parties” entered into an agreement on the construction and maintenance of the J-S Cable System and is valid for 25 years. The construction of the cable system was
completed in 1998. In accordance with the agreement, Telkomsel shared 19.325 of the total construction costs. Operating and maintenance costs are shared based on an agreed
formula.
Telkomsels share of the operating and maintenance cost of the cable system amounted to Rp.106 million and Rp.5 million for three months period ended March 31, 2010 and 2011,
respectively.
ii. IRU Agreement On September 21, 2000, Telkomsel entered into agreement with Indosat on the use of
SEA-ME-WE 3 and Tail Link in Jakarta and Medan. In accordance with the agreement, Telkomsel was granted an IRU for certain capacity of the Link starting from
September 21, 2000 until September 20, 2015, in return for an up-front payment of US2.7 million Note 12. In addition to the up-front payment, Telkomsel is also charged annual
operating and maintenance costs amounting to US0.1 million.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
continued
DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED
Figures in tables are presented in millions of Rupiah, unless otherwise stated
100
44. RELATED PARTY TRANSACTIONS