PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
110
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
c.
Others continued
v USO continued For the years ended December 31, 2013 and 2012, the Company and Telkomsel recognized
the following amounts:
2013 2012
Revenues Construction
67 245
Operation of telecommunication service centre
508 353
Profits Construction
11 6
Operation of telecommunication service centre
150 83
As of December 31, 2013, the Company’s and Telkomsel’s trade receivables from the USO programs which are measured at amortized cost using the effective interest rate method
amount to Rp654 billion Notes 6 and 12. 42. CONTINGENCIES
In the ordinary course of business, the Company and subsidiaries have been named as defendants 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 subsidiaries have recognized provision for losses amounting to
Rp49 billion as of December 31, 2013.
a.
The Company, Telkomsel and seven other local operators are being investigated by The Commission for the Supervision of Business Competition “Komisi Pengawasan Persaingan
Usaha” or “KPPU” for allegations of SMS cartel practices. As a result of the investigations on June 17, 2008, KPPU found that the Company, Telkomsel and certain other local operators had
violated Law No. 5 year 1999 article 5 and charged the Company and Telkomsel penalty in the amounts of Rp18 billion and Rp25 billion, respectively.
Management believes that there are no such cartel practices that led to a breach of prevailing regulations. Accordingly, the Company and Telkomsel filed an appeal with the Bandung District
Court and South Jakarta District Court on July 14, 2008 and July 11, 2008, respectively.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
111
42. CONTINGENCIES continued
Due to the filing of case by operators in various courts, the KPPU subsequently requested the Supreme Court SC to consolidate the cases into the Central Jakarta District Court. Based on the
SC’s decision letter dated April 12, 2011, the SC appointed the Central Jakarta District Court to investigate and resolve the case.
As of the issuance date of the consolidated financial statements, there has not been any notification on the case from the court.
b. The Company is a defendant in a case filed in Makassar District Court by Andi Jindar Pakki and his affiliates over a land property on Jl. A.P. Pettarani. On May 8, 2013, the court pronounced its
verdict and ordered the Company to pay fair compensation or to vacate and surrender the disputed land to the plaintiffs.
On May 20, 2013 the Company filed an appeal to the Makassar High Court, objecting to the District Court’s ruling. In December 2013, the Makassar High Court pronounced its verdict that is
favorable to the plaintiffs and the Company filed an appeal to the Supreme Court. As of the issuance date of the consolidated financial statements, no decision has been reached on the
appeal.
43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
2013 Rupiah
U.S. dollar Japanese yen
Others equivalent
in millions in millions
in millions in billions
Assets Cash and cash equivalents
394.30 1.23
11.42 4,940
Other current financial assets 10.78
- -
131 Trade receivables
Related parties 2.44
- -
30 Third parties
66.27 -
0.17 808
Other receivables 0.68
- 0.13
10 Advances and other non-current assets
5.76 -
- 70
Total assets 480.23
1.23 11.72
5,989 Liabilities
Trade payables Related parties
1.40 -
- 17
Third parties 275.35
- 4.33
3,409 Other payables
7.62 -
0.09 94
Accrued expenses 51.41
18.63 0.01
629 Short-term bank loan
- -
- -
Advances from customers and suppliers 1.60
- 0.01
20 Current maturities of long-term liabilities
34.85 767.90
- 514
Promissory notes 28.67
- -
349 Long-term liabilities - net of current maturities
78.82 7,678.98
- 1,850
Total liabilities 479.72
8,465.51 4.44
6,882
Liabilities - net 0.51
8,464.28 7.28
893 2012
Rupiah U.S. dollar
Japanese yen Others
equivalent in millions
in millions in millions
in billions Assets
Cash and cash equivalents 412.69
1.33 6.38
4,042 Other current financial assets
7.17 -
- 69
Trade receivables Related parties
9.03 -
- 87
Third parties 74.89
- 0.44
727 Other receivables
1.20 -
0.06 12
Advances and other non-current assets 9.89
- -
95
Total assets 514.87
1.33 6.88
5,032
Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period.