PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated
117
49. COMMITMENTS continued c. Others continued
iv Apple, Inc On January 9, 2009, Telkomsel entered into an agreement with Apple, Inc for the purchase of
iPhone products, marketing it to customers using a third party PT Trikomsel OKE and providing cellular network services. Cumulative minimum iPhone units that shall be
purchased as of December 31, 2009, 2010 and 2011 are 125,000, 300,000 and 500,000 units for each year.
v Operating leases
Minimum lease payment Total
Less than 1-5
More than 1 year
years 5 years
Operating leases 271,490
67,859 178,484
25,147 Operating leases represent non-cancelable office lease agreements of certain subsidiaries.
50. CONTINGENCIES
a. In the ordinary course of business, the Company and its subsidiaries have been named as defendant in various legal actions in relation with land disputes, monopolistic practice and unfair
business competition and SMS cartel practices. Based on managements estimate of the probable outcomes of these matters, the Company and its subsidiaries have accrued
Rp.95,102 million as of June 30, 2010.
b. On January 2, 2006, the Office of the Attorney General launched an investigation into allegations of misuse of telecommunication facilities in connection with the provision of VoIP services,
whereby one of the Company’s former employees and four of the Company’s employees in KSO VII were named suspects. As a result of the investigations, one of Company’s former employees
and two of the Company’s employees were indicted in the Makassar District Court, and two other employees were indicted in the Denpasar District Court for their alleged corruption in KSO VII.
On January 29, 2008, the Makassar District Court found the defendant not guilty. The Attorney has filed an appeal to Indonesian SC objecting the District Court ruling. On May 4, 2010, the
Company received SC’s decision that found the defendant guilty and sentenced the defendant to a six-year prison term, Rp.500 million penalty, and indemnity amounting Rp.30,115 million by
jointly liability. The defendants filed a judicial review to SC for the decision. As of the issuance date of the consolidated financial statements, no decision has been reached on the judicial
review.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated
118
50. CONTINGENCIES continued
b. continued On March 3, 2008, Denpasar District Court found the defendants guilty and sentenced each
defendant to a one-year six-month prison term and a one year prison term and gave a Rp.50 million penalty. The defendants have filed an appeal to the Bali High Court objecting to the
District Court ruling. On November 5, 2008, the Bali High Court found the defendants guilty. On January 16, 2009, one of the defendants in Bali High Court has filed an appeal to the Indonesian
SC. As of the issuance date of the consolidated financial statements, no decision has been reached on both appeals.
c. The Commission for the Supervision of Business Competition “Komisi Pengawasan Persaingan Usaha” or “KPPU” on its letter dated December 5, 2007, notified Telkomsel that based on its
investigation of case No. 07KPPU-L2007 dated November 19, 2007, according to the applied provisions regarding allegation of violating Law No. 51999, “Prohibition of Monopolistic Practice
and Unfair Business Competition” the “Law”, related to cross-ownership by Temasek Holdings and monopoly practices by Telkomsel, it had decided that, among other things :
Telkomsel was proven not to have violated article 25.1.b of the Law, Telkomsel had violated article 17.1 of the Law,
Temasek Holdings and certain affiliated companies were instructed to release their ownership either in Indosat or Telkomsel with the following conditions:
Maximum 5 of total shares for each buyer, The buyer is not associated with Temasek Holdings.
Telkomsel was to be charged a penalty of Rp.25,000 million and instructed Telkomsel to discontinue the imposition of high tariffs and reduce its tariffs by least 15.
On May 9, 2008 the Court pronounced its verdict and concluded among other things: Telkomsel was proven not to have violated article 25.1.b of the Law,
Telkomsel had violated article 17.1 of the Law, Temasek Holdings and certain affiliated companies were instructed to release their
ownership in either Indosat or Telkomsel or to decrease their ownership by 50 in each of those companies within twelve months from the date of the decision becoming final and
legally binding at the following conditions:
Maximum 10 of total shares for each buyer, The buyer is not associated with Temasek Holdings.
Telkomsel was charged a penalty of Rp.15 billion, The Court revoked the decision of KPPU on the instruction to reduce the tariffs because
KPPU did not have the authority to determine the tariffs. On May 22, 2008, Telkomsel filed an appeal to the SC. In its verdict on September 9, 2008, the
SC revoked the Court’s verdict on the instruction to Temasek Holdings and certain affiliated companies to release their ownership in either Indosat or Telkomsel. On May 14, 2009,
Telkomsel filed a judicial review to the SC on the verdict. On May 5, 2010, SC pronounced that it rejected Telkomsel’s appeal for the judicial review. As of the issuance date of the consolidated
financial statements, Telkomsel has not received any formal verdict form the SC.
