PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
97
31. RELATED PARTY TRANSACTIONS continued c. Significant agreements with related parties continued
iii. Others The Company has entered into agreements with CSM and Gratika for the utilization of the
Companys satellite transponders or frequency channels of communication satellite and leased lines.
Kisel is a co- operative that was established by Telkomsel’s employees to engage in car rental
services, printing and distribution of customer bills, collection and other services principally for the benefit of Telkomsel. Telkomsel also has dealership agreements with Kisel for distribution of
SIM cards and pulse reload vouchers.
d. Key management personnel remuneration
Key management personnels consist of the Boards of Commissioners and Directors of the Company.
The Company provides remuneration in the form of honorarium and facilities to support the operational duties of the Board of Commissioners and short-term employment benefits in the form
of salaries and facilities to support the operational duties of the Board of Directors. The total of such benefits is as follows:
2016 2015
Amount of total
expenses
Amount of total
expenses Board of Directors
427 0.57
168 0.24
Board of Commissioners 121
0.16 64
0.09 32. OPERATING SEGMENT
The Group has four main operating segments, namely corporate, home, personal and others. The corporate segment provides telecommunications services, including interconnection, leased lines,
satellite, VSAT, contact center, broadband access, information technology services, data and internet services to companies and institutions. The home segment provides fixed wireline telecommunications
services, pay TV, data and internet services to home customers. The personal segment provides mobile cellular and fixed wireless telecommunications services to individual customers. Operating segments
that are not monitored separately by the Chief Operation Decision Maker are presented as Others, which provides building management services.
No operating segments have been aggregated to form the operating segments of personal, home and others, while corporate operating segment is aggregated from business, enterprise, wholesale and
international operating segments since they have the similar economic characteristics and similar in other qualitative criteria such as providing similar network services and serving corporate customers.
Management monitors the operating results of the business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated
based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements.
However, the financing activities and income taxes are not separately evaluated and allocated to operating segment.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
98
32. OPERATING SEGMENT
Segment revenues and expenses include transactions between operating segments and are accounted at prices that management believes represent market prices.
2016 Corporate
Home Personal
Others Total before
elimination Elimination
Total consolidated
Segment results
Revenues External revenues
24,177 7,803
83,990 363
116,333 -
116,333 Inter-segment revenues
32,675 5,077
2,724 2,395
42,871 42,871
- Total segment revenues
56,852 12,880
86,714 2,758
159,204 42,871
116,333 Expenses
External expenses 26,014
10,201 38,800
2,123 77,138
- 77,138
Inter-segment expenses 22,331
2,375 12,503
426 37,635
37,635 -
Total segment expenses 48,345
12,576 51,303
2,549 114,773
37,635 77,138
Segment results 8,507
304 35,411
209 44,431
5,236 39,195
Other information
Capital expenditures 11,419
4,437 12,565
778 29,199
- 29,199
Depreciation and amortization
4,148 1,711
12,549 124
18,532 -
18,532 Provision recognized in
current period 87
424 222
10 743
- 743
2015 Corporate
Home Personal
Others Total before
elimination Elimination
Total consolidated
Segment results
Revenues External revenues
21,072 7,319
73,766 313
102,470 -
102,470 Inter-segment revenues
14,347 4,352
2,365 1,943
23,007 23,007
- Total segment revenues
35,419 11,671
76,131 2,256
125,477 23,007
102,470 Expenses
External expenses 20,239
6,705 41,130
1,978 70,052
- 70,052
Inter-segment expenses 8,066
4,706 10,173
62 23,007
23,007 -
Total segment expenses 28,305
11,411 51,303
2,040 93,059
23,007 70,052
Segment results 7,114
260 24,828
216 32,418
- 32,418
Other information
Capital expenditures 10,007
4,172 11,321
901 26,401
- 26,401
Depreciation and amortization
2,708 1,203
14,531 92
18,534 -
18,534 Provision recognized in
current period 560
297 148
5 1,010
- 1,010
Geographic information:
2016 2015
External revenues Indonesia
114,093 100,456
Foreign countries 2,240
2,014
Total 116,333
102,470
The revenue information above is based on the location of the customers.
2016 2015
Non-current operating assets Indonesia
115,216 105,361
Foreign countries 2,371
1,395
Total 117,587
106,756
Non-current operating assets for this purpose consist of property and equipment and intangible assets.
