PT TRIKOMSEL OKE Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2009 and 2008 Expressed in Rupiah Unless Otherwise Stated
37
21. OPERATING EXPENSES continued 2009
2008
Insurance 2,552,498,379
1,509,476,217 Provision for decline in value of inventories
2,175,351,177 1,090,582,711
Office supplies 2,053,269,859
2,127,554,937 Employees’ insurance
1,052,924,803 851,636,932
Others below Rp1 billion each 4,427,037,060
1,473,110,917
Total operating expenses 294,449,351,682
232,561,201,852 22. FINANCING CHARGES
2009 2008
Interest expense on bank loans 84,822,769,749
45,481,245,477 Bank administration expense
12,212,910,663 12,555,870,285
Interest expense on finance lease payables 139,592,737
160,273,525
Total financing charges 97,175,273,149
58,197,389,287 23. BALANCES, TRANSACTIONS AND RELATIONSHIPS WITH RELATED PARTIES
The Company, in its regular conduct of business, engages in transactions with certain related parties, with details as follows:
a. On November 14, 2008, the Company entered into a Cooperation Agreement of Delivery Services of Telecommunication Devices and Equipment with PT Alpha EMS, whereby PT Alpha EMS will
provide storage and delivery services of the Company’s telecommunication devices in Indonesia. The term of this agreement is two 2 years from the date the agreement was signed subject for
automatic renewal for another one 1 year, unless it is terminated by either party. For the year ended December 31, 2009, storage and delivery service expenses charged to the Company is
amounted to Rp323,393,471 and the related outstanding advance payment as of December 31, 2009 amounted to Rp61,352,157. There were no related storage and delivery service expenses
charged to the Company for the year ended December 31, 2008.
b. On July 28, 2008, the Company entered into an agreement with PT SkyBee formerly PT Kreatip Komunikacitra to order reload vouchers, which amount will be determined on a timely basis
according to the needs of each party. The term of this agreement is twelve 12 months from the date the agreement was signed subject for automatic renewal, unless agreed differently by both
parties. For the years ended December 31, 2009 and 2008, the Company’s purchases of reload vouchers are amounted to Rp311,953,110,392 and Rp250,946,900,311, respectively, and the
related outstanding trade payables as of December 31, 2008 amounted to Rp864,902,560. As of December 31, 2009, the advance payment related to those transactions is amounted to
Rp6,057,455,407.
PT TRIKOMSEL OKE Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2009 and 2008 Expressed in Rupiah Unless Otherwise Stated
38
23. BALANCES, TRANSACTIONS AND RELATIONSHIPS WITH RELATED PARTIES continued
c. On June 10, 2008, the Company entered into an agreement with PT SkyBee formerly PT Kreatip Komunikacitra, whereby the Company appointed PT SkyBee as an outsourcing agent to provide
manpower in Jawa, Bali, and other areas. The term of this agreement is twelve 12 months subject for automatic renewal for six 6 months. For the year ended December 31, 2009, the
related management fee expenses is amounted to Rp379,315,696 and the outstanding payables as of December 31, 2009 is amounted to Rp1,538,650. There was no related management fee
charged to the Company during the year ended December 31, 2008. The Company and PT SkyBee agreed not to extend the agreement since December 31, 2009.
d. On March 1, 2008, the Company entered into a subscription agreement for Internet Protokol IP- based telecommunication services with PT Mobicom Selularindo Gemilang. The subscription term
is three 3 years from the date the agreement was signed subject for automatic renewal for another year, unless terminated by either party through written notification. There was no related
telecommunication expenses charged to the Company for the years ended December 31, 2009 and 2008.
e. On January 7, 2008, the Company entered into a download content cooperation agreement with PT Triyakom. The agreement has been effective from the date the agreement was signed until
January 7, 2010 subject for automatic renewal for another year, unless terminated by either party through written notification one 1 month before renewal. For the years ended December 31, 2009
and 2008, the Company’s purchases of content are amounted to Rp164,073 and Rp1,828,522, respectively, and the related outstanding trade payables as of December 31, 2009 and 2008
amounted to Rp1,094,710 and Rp930,638, respectively.
f. On January 2, 2008, the Company entered into a room and rack rental agreement to place equipment related to internet provider services with PT Sinergitama Komindo. The agreement
expired on December 31, 2009 subject for automatic renewal for another year. Furthermore, on February 1, 2008, the Company entered into an agreement to subscribe internet services from
PT Sinergitama Komindo. The term of this agreement is three 3 years from the date the agreement was signed subject for automatic renewal for another year, unless terminated by either
party. Expenses related to both agreements charged to operations for the years ended December 31, 2009 and 2008 amounted to Rp235,340,520 and Rp5,500,000, respectively, are
presented as part of “Operating Expenses” in the consolidated statements of income.
g. In 2008, the Company decorated fitted out its several outlets using the construction services from PT Deltakomindo Pratama. This agreement was effective from September 1, 2008 subject for
automatic renewal unless terminated by either party. Prepaid fit out expenses as of December 31, 2008 amounted to Rp159,030,305. Amortization of fit out charged to operations for the years
ended December 31, 2009 and 2008 amounted to Rp178,993,907 and Rp30,452,614, respectively, presented as part of “Operating Expenses” in the consolidated statements of income.
As of December 31, 2008, the outstanding other receivables from PT Deltakomindo Pratama for overpayment of construction services amounted to Rp11,745,467.
h. The Company rented an outlet located at E-Centre Karawaci, Tangerang, under a rental agreement with PT SkyBee formerly PT Kreatip Komunikacitra from March 1, 2007 until
March 1, 2008, extended until March 1, 2012. Prepaid rent as of December 31, 2008 amounted to Rp20,000,000. The related rental expenses charged to operations for the years ended
December 31, 2009 and 2008 amounted to Rp120,000,000 and Rp121,818,200, respectively, are presented as part of “Operating Expenses” in the consolidated statements of income.
