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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As of June 30, 2006, the Company complied with the above mentioned ratios.
23. NOTES AND BONDS
2005 2006
Bonds 989,207
994,494 Medium-term Notes
833,808 464,621
Total 1,823,015
1,459,115 Current maturities
224,188 464,621
Long-term portion 1,598,827
994,494
a. Bonds
On July 16, 2002, the Company issued bonds amounting to Rp1,000,000 million. The bonds were issued at par value and have a term of five years. The bonds bear interest at a fixed rate of 17 per
annum, payable quarterly beginning October 16, 2002. The bonds are traded on the Surabaya Stock Exchange and will mature on July 16, 2007. The trustee of the bonds is PT Bank Negara
Indonesia Persero Tbk and the custodian is PT Danareksa Sekuritas. Effective January 17, 2006, PT Bank Rakyat Indonesia Tbk became the trustee of the bonds replacing PT Bank Negara
Indonesia Persero Tbk. As of June 30, 2006, the rating for the bonds issued by Pefindo is AAA and by Standard and
Poor’s is BB+. As of June 30, 2005 and 2006, the outstanding principal amount of the bonds and the unamortized
bond issuance costs are as follows:
2005 2006
Principal 1,000,000
1,000,000 Bond issuance costs
10,793 5,506
Net 989,207
994,494
During the period when the bonds are outstanding, the Company is required to comply with all covenants or restrictions including maintaining consolidated financial ratios as follows:
1. Debt service coverage ratio should exceed 1.5:1
2. Debt to equity ratio should not exceed: a. 3:1 for the period of January 1, 2002 to December 31, 2002
b. 2.5:1 for the period of January 1, 2003 to December 31, 2003 c. 2:1 for the period of January 1, 2004 to the redemption date of the bonds
3. Debt to EBITDA ratio should not exceed 3:1 The Company has breached a covenant in the bonds indenture which stipulated that during the
period when the bonds are outstanding, the Company will not make any loans to or for the benefit of any person which in aggregate exceed Rp500,000 million. As of March 24, 2006, the Company
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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has obtained a written waiver from PT Bank Rakyat Indonesia Tbk, the trustee of the bonds, with regard to providing loans to certain subsidiaries which in aggregate exceed Rp500,000 million.
23. NOTES AND BONDS continued
