PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
102
43. POST-RETIREMENT HEALTH CARE BENEFITS continued December 31,
December 31, 2009
2010
Discount rate 10.75
9.5 Expected long-term return on plan assets
9.25 8.21
Health care costs trend rate assumed for next year
10 8
Ultimate health care costs trend rate 8
8 Year that the rate reaches the ultimate trend rate
2012 2011
44. RELATED PARTY TRANSACTIONS
In the normal course of business, the Company and its subsidiaries entered into transactions with related parties. It is the Companys policy that the pricing of these transactions be the same as those
of arm’s-length transactions.
The following are significant agreementstransactions with related parties:
a. Government
i. The Company obtained two-step loans from the Government, the Companys majority stockholder Note 20.
Interest expense for two-step loans amounted to Rp.121,332 million and Rp.113,863 million for nine months period ended September 30, 2010 and 2011, respectively. Interest expense
for two-step loans represent 8.49 and 9.42 of the total interest expense for each period.
ii. The Company and its subsidiaries pay concession fees for telecommunications services provided and radio frequency usage charges to the Ministry of Communications and
Information of the Republic of Indonesia. Concession fees amounted to Rp.255,915 million and Rp.263,651 million for nine months
period ended September 30, 2010 and 2011, respectively Note 35, representing 0.7 of the total operating expenses for each period. Radio frequency usage charges amounted to
Rp.2,631,906 million and Rp.2,384,569 million for nine months period ended September 30, 2010 and 2011, respectively Note 35, representing 7.5 and 6.5 of the total operating
expenses for each period.
Telkomsel paid an up-front fee for the 3G license amounting to Rp.756,000 million and recognized an intangible asset Note 13.iii.
iii. Starting 2005, the Company and its subsidiaries pay USO charges to the Ministry of Communications and Information of the Republic of Indonesia pursuant to MoCI Regulation
No.15PerM.KOMINFO92005 of September 30, 2005. USO charges amounted to Rp.624,020 million and Rp.635,947 million for nine months period
ended September 30, 2010 and 2011, respectively Note 35, representing 1.8 and 1.7 of the total operating expenses for each period.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
103
44. RELATED PARTY TRANSACTIONS continued b. Commissioners and Directors remuneration
i. The Company and its subsidiaries provide honorarium and facilities to support the operational duties of their Board of Commissioners. The total of such benefits amounted to Rp.42,208
million and Rp.41,695 million for nine months period ended September 30, 2010 and 2011, respectively, representing 0.1 of the total operating expenses for each period.
ii. The Company and its subsidiaries provide salaries and facilities to support the operational duties of their Board of Directors. The total of such benefits amounted to Rp.118,564 million
and Rp.112,385 million for nine months period ended September 30, 2010 and 2011, respectively, representing 0.3 of the total operating expenses for each period.
c. Indosat
The Company considers Indosat as a related party because the Government can exert significant influence over the financial and operating policies of Indosat by virtue of its right to appoint one
Director and one Commissioner of Indosat.
The Company has an agreement with Indosat for the provision of international telecommunications services to the public.
The principal matters covered by the agreement are as follows: i. The Company provides a local network for customers to make or receive international calls.