PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
110
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued a. Capital expenditures continued
v TII
Contracting parties Initial date of
agreement Significant provisions of the
agreement
TL, Ericsson AB and PT Ericsson Indonesia November 2, 2012
Operational Supporting System OSS, Base Sub Station BSS and Value
Added System VAS System Rollout and Radio Access Network RAN and Core
System Rollout agreement TL, Ericsson AB and PT Ericsson Indonesia
February 1, 2013 Management service agreement for end-
to-end mobile network TL and PT Cascadiant Indonesia
December 31, 2012 Desember 31, 2012
November 20, 2013 Installation and maintenance service
agreement Purchase of equipment phase I
agreement Purchase of equipment phase II
agreement
b. Borrowings and other credit facilities
i As of September 30, 2014, the Company has bank guarantee facilities for tender bond, performance bond, maintenance bond, deposit guarantee and advance payment bond for
various projects of the Company, as follows:
Facility utilized Original
Total currency
Rupiah Lenders
facility Maturity
Currency in millions
equivalent
BRI 350
March 14, 2016 Rp
- 177
US 2
BNI 250
March 31, 2015 Rp
- 81
US 3
EUR Bank Mandiri
150 December 23, 2014 Rp
- 51
US -
-
Total 750
314
ii Telkomsel has a US3 million bond and bank guarantee and standby letter of credit facilities with SCB, Jakarta. The facilities expire on July 31, 2014. Under these facilities, as of
September 30, 2014, Telkomsel has issued a bank guarantee of Rp20 billion equivalent to US1.7 million for a 3G performance bond Note 41c.i. The bank guarantee is valid until
March 24, 2015. Telkomsel has a Rp200 billion bank guarantee facilitiy with BRI. The facility will expire on
September 25, 2014. Under the facility, as of September 30, 2014, Telkomsel has issued a bank guarantee of Rp177 billion equivalent to USD14.8 million as payment commitment
guarantee for annual right of usage fee valid until March 31, 2015. Telkomsel has a Rp100 billion bank guarantee with BNI. The bank guarantee is valid until
December 11, 2014. Telkomsel was using this facility to replace the time deposit used guaranty for the USO program amounting to Rp56.4 billion.
Telkomsel has also a Rp150 billion bank guarantee with BCA. The bank guarantee is valid until April 15, 2015. Under these facilities, as of September 30, 2014, Telkomsel has issued
a bank guarantee of Rp20 billion equivalent to US1.7 million for a 3G performance bond Note.41c.i.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
111
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
b. Borrowings and other credit facilities continued
iii TII has a US15 million bank guarantee from Bank Mandiri. The facility expires on December 19, 2014. As of September 30, 2014, TII has not issued a bank guarantee.
c. Others
i 3G license With
reference to
the Decision
Letters No.
07PERM.KOMINFO22006, No. 268KEPM.KOMINFO92009 and No. 191 year 2013 of the MoCI Note 2i, Telkomsel is
required, among other things, to: 1. Pay an annual BHP fee which is calculated based on a certain formula over the license
term 10 years as set forth in the Decision Letters. The BHP is payable upon receipt of the notification letter “Surat Pemberitahuan Pembayaran” from the DGPI. The BHP fee is
payable annually up to the expiry date of the license. 2. Provide roaming access for the existing other 3G operators.
3. Contribute to USO development. 4. Construct a 3G network which covers at least 14 provinces by the sixth year of holding the
3G license. 5. Issue a performance bond each year amounting to Rp20 billion or 5 of the annual fee to
be paid for the subsequent year, whichever is higher. ii Radio Frequency Usage
Based on the Decree No. 76 dated December 15, 2010 of the Government of the Republic of Indonesia, which amended Decree No. 7 dated January 16, 2009, the annual frequency
usage fees for bandwidths of 800 Megahertz “MHz”, 900 MHz and 1800 MHz are determined using a formula set forth in the Decree. The Decree is applicable for 5 years
unless further amended. As an implementation of the above Decree, the Company and Telkomsel paid the first year
and second year annual frequency usage fees in 2010 and 2011, respectively. Based on Decision Letters No. 495 dated August 29, 2012 and No. 491 dated
August 29, 2012, the MoCI determined that the third year Y
3
, 2012, annual frequency usage fees of the Company and Telkomsel were Rp174 billion and Rp1,718 billion, respectively. The
fees were paid in December 2012. Based on Decision Letters No. 881 dated September 10, 2013 and No. 884 dated September
10, 2013, the MoCI determined that the fourth year Y
4
, 2013, annual frequency usage fees of the Company and Telkomsel were Rp213 billion and Rp1,649 billion, respectively. The fees
were paid in December 2013 Note 2i. Based on Decision Letters No. 940 dated September 26, 2014, MoCI determined that the fifth
year Y5, 2014, annual frequency usage fee of Telkomsel was Rp2,198 billion. The fee includes frequency usage fee was transfered from Company to Telkomsel and should be paid
in December 2014 Note 1.d