NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
44
9. PROPERTY, PLANT AND EQUIPMENT continued
c. Assets impairment continued iii As of June 30, 2012 and December 31, 2011, the Company operated two satellites, Telkom-
1 and Telkom-2 primarily providing backbone transmission links for its network and earth station satellite up-linking and down-linking services to domestic and international users. As
of June 30, 2012, there were no events or changes in circumstances that would indicate that the carrying amount of the Company’s satellites may not be recoverable.
d. Others i
Interest capitalized to property under construction amounted to Rp.nil for six months period ended June 30, 2012 and for the year ended December 31, 2011, respectively.
ii Foreign exchange loss capitalized as part of property under construction amounted to Rp.nil for six months period ended June 30, 2012 and for the year ended December 31, 2011,
respectively. iii In February 2012, Telkomsel decided to replace certain equipment part of infrastructure
with a net carrying amount of Rp.8 billion as part of a modernization program. Accordingly, Telkomsel changed the useful life of such equipment. The impact is an additional
depreciation expense of Rp.5 billion charged to the 2012 consolidated statement of comprehensive income.
In 2012 and 2011, due to the impact of changes in technology, damage and other causes, certain equipment and software mainly part of infrastructure and supporting facilities with a
net carrying amount of Rp.3 billion and Rp.6 billion, respectively, were derecognized.
iv In May 2011, the useful life of Telkomsel’s certain equipment part of supporting facilities was changed from 10 years to 6 years to reflect its current economic life. The impact is an
additional depreciation expenses of Rp.295 billion charged to the 2011 consolidated statements of comprehensive income.
v Exchange of property, plant and equipment:
•
On January 24, 2011 and February 25, 2011, the Company and INTI entered into a purchase order of procurement and installation agreement for the Modernization of the
Copper Cable Network through Optimization of Asset Copper Cable Network with Trade In Trade Off TITO mode for STO Cengkareng, STO Gandaria and STO Injoko
amounting to Rp.96 billion and for STO Semanggi amounting to Rp.44 billion. As of June 30, 2012, the Company has derecognised the copper cable network asset with a net
book value of Rp.1 billion and recorded the fiber optic network asset of Rp.57 billion.
• In 2012 and 2011, certain equipment part of infrastructure with a cost and a net carrying
amount of Rp.1,034 billion and Rp.375 billion, respectively, were exchanged with equipment from Nokia Siemens Network Oy and Huawei with a total price of US16
million.
In 2012 and 2011, certain equipment part of infrastructure with a net carrying amount of Rp.128 billion and Rp.836 billion, respectively, are going to be exchanged with equipment
from Nokia Siemens Network Oy and Huawei. Accordingly, these were reclassified to non-current assets held for sale Note 7.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
45
9. PROPERTY, PLANT AND EQUIPMENT continued
