PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 53
26. RELATED PARTY INFORMATION continued
i. Rental expense
2007 2008
2009 2009
2010 1 year
1 year 1 year
3 months 3 months
PT Rajawali Corpora 4,618
4,618 4,618
1,155 1,155
As a percentage of operating expenses
0.07 0.04
0.04 0.04
0.04
On 15 December 2006, the Company made a rental prepayment for the period 1 November 2006 to 30 June 2012. As at 31 December 2007, 2008 and 2009; 31 March 2009 and 2010, the balance
of the rental prepayment amounting to Rp 20,783, Rp 16,165 and Rp 11,546; Rp 15,010 and Rp 10,391, respectively, consists of Rp 4,618 current portion and Rp 16,165, Rp 11,547 and
Rp 6,928; Rp 10,392 and Rp 5,773 non-current portion.
j. Service expense
2007 2008
2009 2009
2010 1 year
1 year 1 year
3 months 3 months
PT VADS Indonesia -
4,895 60,263
11,644 18,973
As a percentage of operating expense
0.00 0.05
0.53 0.43
0.65
k. Salaries and allowances for Board of Directors and Commissioners
2007 2008
2009 2009
2010 1 year
1 year 1 year
3 months 3 months
Salaries and allowances for Board of Directors and Commissioners
19,727 35,072
33,511 12,481
5,359 As a percentage of total employee
costs 3.26
4.76 4.24
6.88 2.62
l. Sale of fixed assets
In May 2009, the Company completed the sale of certain fixed assets related to call centre activities. The transaction was carried out with PT VADS Indonesia, a related party, at the net
book value amounted to Rp 14,808.
The transactions with related parties are made under terms and conditions as though the transactions were made with third parties on an arm’s length basis. At the time the transactions were entered, the
Company is in compliance with the regulations of Indonesian Capital Market and Financial Institution Supervisory Agency No. IX.E.1 regarding Affiliated Transactions and Conflicts of Interest on Certain
Transactions.
PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 54
27. COMMITMENTS
a. Capital commitments
The Company has made various purchase commitments related to the expansion of the network against which the Company has made downpayments, as follows:
31032010 In million USD
Equivalent billion Rp
Purchase commitments 197
1,791 Downpayments
1 8
196 1,783
b. Operating lease commitments
In 1999 the Company entered into an office rental agreement denominated in Rupiah with PT Caraka Citra Sekar Lestari third party for a term of 10 ten years. On 23 March 2007, the
Company amended the office rental agreement until 31 October 2020, with a total commitment as follows:
31032010
Payable within 1 one year 18,850
Payable within 2 two years and 5 five years 98,683
Payable more than 5 five years 93,139
210,672 The rental expenses related to this commitment for the years ended 31 December 2007, 2008
and 2009; and three-month periods ended 31 March 2009 and 2010 amounted to Rp 10,956, Rp 11,088 and Rp 11,088; and Rp 2,772 and Rp 2,772, respectively.
On 6 September 2008, the Company entered into an office rental agreement denominated in Rupiah with PT Wiratara Prima third party for a term of 6 six years, with a total commitment as
follows:
Year 1-3 = Rp 10,049 per year
Year 4-6 = based on a market value with a minimum increase of 10 and maximum 15
from prior rent fee. Rental expenses related to this commitment for the years ended 31 December 2007, 2008 and
2009; and the three-month periods ended 31 March 2009 and 2010 amounting to Rp 2,092, Rp 10,199 and Rp 9,390; Rp 2,512 and Rp 2,183, respectively.
c. 3G annual fees commitments
The Company has committed to pay annual fees within 10 ten years, as long as the Company holds the 3G license. The amount of the annual payment is based on the scheme of payment set
out in Regulation No. 07PERM.KOMINFO22006 of the Minister of Communication and Information refer to Note 1d. No penalty will be imposed in the event of the Company returning
the license.
