PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
106
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
iv USO continued b. The Company continued
On December 23, 2010, the Company was selected in a tender by the Government through BPPPTI to provide mobile internet access service centers for USO sub-districts for a total
amount of Rp528 billion, covering Jambi, Riau, Kepulauan Riau, North Sulawesi, Central Sulawesi, Gorontalo, West Sulawesi, South East Sulawesi, Central Kalimantan, South
Sulawesi, Papua and West Irian Jaya.
In 2015, the program was ceased. On September 8, 2015, the Company filed an arbitration claim to the Indonesia National Board of Arbitration “BANI” for the settlement of the
outstanding receivables of USO-PLIK and USO-MPLIK. On September 22, 2016, BANI decided that BPPPTI should pay the underpayment to the Company for USO-PLIK and
USO-MPLIK project amounting to Rp127 billion and Rp342 billion, respectively.
As of the date of the issuance of these consolidated financial statements, the Company has received payment from BPPPTI amounting to Rp278 billion.
c. Telkomsel On January 16 and 23, 2009, Telkomsel was selected in a tender by the Government
through BTIP to provide and operate telecommunication access and services in rural areas USO Program for a total amount of Rp1.66 trillion, covering all Indonesian territories
except Sulawesi, Maluku and Papua. Accordingly, Telkomsel obtained local fixed-line licenses and the right to use radio frequency in the 2,390 MHz - 2,400 MHz bandwidth.
Subsequently, in 2010 and 2011, the agreements with BTIP were amended, which amendments cover, among other things, changing the price to Rp1.76 trillion and changing
the term of payment from quarterly to monthly or quarterly. In January 2010, the MoCI granted Telkomsel operating licenses to provide local fixed-line
services under the USO program. On December 27, 2011, Telkomsel on behalf of Konsorsium Telkomsel, a consortium
which was established with Dayamitra on December 9, 2011 was selected by BPPPTI as a provider of the USO Program in the border areas for all packages package 1-13 with a
total price of Rp830 billion. On such date, Telkomsel was also selected by BPPPTI as a
provider of the USO Program Upgrading of “Desa Pinter” or “Desa Punya Internet” for 1, 2 and 3 packages with a total price of Rp261 billion.
On March 31, 2014, the USO program for packages 1, 2,
3, 6
and 7 were ceased. As of September 18, 2014, Telkomsel filed an arbitration claim to BANI for the settlement of the
outstanding receivable from BPPPTI. On October 23, 2015, BANI decided that Telkomsel should pay the overpayment by BPPPTI for the USO program amounting to
Rp94.2 billion. Telkomsel accepted the decision and paid the overpayment in December 2015. On October 29, 2015, BPPPTI informed that operational license for USO program of
“Desa Pinter” could not be issued. In January 2016, Telkomsel filed an arbitration claim to BANI for terminating the USO program.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
107
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
c.
Others continued
iv USO continued b. Telkomsel continued
On June 22, 2017, Telkomsel received decision letter of BANI No.7921ARB-BANI2016 requesting BPPPTI to pay compensation to Telkomsel amounting to Rp217 billion.
As of June 30, 2017 and December 31, 2016, the Company’s and Telkomsel’s net carrying
amount of trade receivables for the USO programs which are measured at amortized cost using the effective interest method amounted to Rp198 billion and Rp178 billion, respectively Note
5.
35. CONTINGENCIES
In the ordinary course of business, the Group has been named as defendant monopolistic practice and unfair business competition and SMS cartel practices.
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. On June 17, 2008, in case No. 26KPPU-L2007, the Company, Telkomsel and seven other local operators were investigated. As a result of the
investigations, KPPU stated that the Company, Telkomsel and five other local operators had violated Law No. 5 year 1999 article 5 and charged the Company and Telkomsel 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.
Seven other local operators also filed an appeal in various courts. In relation to the case, the KPPU 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. On May 27, 2015, the Central Jakarta District Court in case
No. 03KPPU208PN.JKT.PST decided that the Company, Telkomsel and seven other local operators won the case.
On July 23, 2015, KPPU filed an appeal to the SC regarding the case of SMS cartel practices. On February 29, 2016, the SC in case No. 9 KPdt.Sus-KPPU2016 decided on the case in favor of
KPPU, therefore the Company and Telkomsel have to pay the penalty charged by KPPU amounting to Rp18 billion and Rp25 billion, respectively. Based on management’s estimate of the probable outcomes
of this matter, the Group and Telkomsel have recognized provision for losses amounting to Rp18 billion and Rp25 billion, respectively. The Company and Telkomsel have paid the penalty to the treasury fund
in January 2017.
