Indosat RELATED PARTY TRANSACTIONS continued b. Commissioners and Directors remuneration
45. RELATED PARTY TRANSACTIONS continued c. Indosat continued
Telkomsel also has an agreement with Indosat on the usage of Indosats telecommunications facilities. The agreement, which was made in 1997 and is valid for eleven years, is subject to change based on annual review and mutual agreement by both parties. The charges for the usage of the facilities amounted to Rp.7,921 million and Rp.173,941 million for six months period ended June 30, 2009 and 2010, respectively, representing 0.04 and 0.8 of the total operating expenses for each period. Other agreements between Telkomsel and Indosat are as follows: i. Agreement on Construction and Maintenance for Jakarta-Surabaya Cable System J-S Cable System On October 10, 1996, Telkomsel, Lintasarta, PT Satelit Palapa Indonesia “Satelindo” and Indosat the “Parties” entered into an agreement on the construction and maintenance of the J-S Cable System. The Parties have formed a management committee which consists of a chairman and one representative from each of the Parties to direct the construction and operation of the cable system. The construction of the cable system was completed in 1998. In accordance with the agreement, Telkomsel shared 19.325 of the total construction costs. Operating and maintenance costs are shared based on an agreed formula. Telkomsel’s share in operating and maintenance costs amounted to Rp.1,015 million and Rp.212 million for six months period ended June 30, 2009 and 2010, respectively. ii. IRU Agreement On September 21, 2000, Telkomsel entered into agreement with Indosat on the use of SEA-ME-WE 3 and tail link in Jakarta and Medan. In accordance with the agreement, Telkomsel was granted an IRU for certain capacity of the link starting from September 21, 2000 until September 20, 2015 for an up-front payment of US2.7 million Note 13. In addition to the up-front payment, Telkomsel is also charged annual operating and maintenance costs amounting to US0.1 million. In 1994, the Company transferred to Satelindo the right to use a parcel of Company-owned land located in Jakarta which had been previously leased to Telekomindo. Based on the transfer agreement, Satelindo is given the right to use the land for 30 years and can apply for the right to build properties thereon. The ownership of the land is retained by the Company. Satelindo agreed to pay Rp.43,023 million to the Company for the right to use of 30 years. Satelindo paid Rp.17,210 million in 1994 while the remaining balance Rp.25,813 million was not paid because the Utilization Right “Hak Pengelolaan Lahan” or HPL on the land could not be delivered as provided in the transfer agreement. In 2000, the Company and Satelindo agreed on an alternative solution resulting in the payment being treated as a lease expense up to 2006. In 2001, Satelindo paid an additional amount of Rp.59,860 million as lease expense up to 2024. As of June 30, 2009 and 2010, the prepaid portion is shown in the consolidated balance sheets as “Advances from customers and suppliers”. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010, AND SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated 9745. RELATED PARTY TRANSACTIONS continued c. Indosat continued
Parts
» GENERAL a. Establishment and general information
» GENERAL continued a. Establishment and general information continued
» Company’s Board of Commissioners, Directors and employees
» Public offering of shares of the Company
» Subsidiaries GENERAL continued c. Public offering of shares of the Company continued
» GENERAL continued d. Subsidiaries continued
» Authorization of the consolidated financial statements
» Basis of preparation of financial statements
» Principles of consolidation SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» Transactions with related parties
» Acquisitions of subsidiaries SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued f. Investments continued
» Property, plant and equipment - direct acquisitions
» Property, plant and equipment under finance leases
» Joint Operation Schemes “Kerja Sama Operasi” or “KSO”
» Deferred charges for land rights
» Foreign currency translation Revenue and expense recognition
» Employee benefits SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued n. KSO continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued r. Employee benefits continued
» Derivative instruments SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Income tax
» Dividends SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Treasury Stock
» Earnings per share and earnings per ADS
» Segment information SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Treasury Stock
» Use of estimates SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Treasury Stock
» TRANSLATION OF RUPIAH INTO UNITED STATES DOLLARS
» ACQUISITIONS OF SIGMA AND AD MEDIKA a. Acquisitions of Sigma
» CASH AND CASH EQUIVALENTS 2009
» CASH AND CASH EQUIVALENTS continued 2009
» CASH AND CASH EQUIVALENTS continued 2009 TRADE RECEIVABLES
» TRADE RECEIVABLES continued FSTelkom30June10Eng
» TRADE RECEIVABLES continued INVENTORIES 2009
» INVENTORIES continued FSTelkom30June10Eng
» PREPAID EXPENSES 2009 FSTelkom30June10Eng
» PSN LONG-TERM INVESTMENTS continued b. CSM
» Scicom LONG-TERM INVESTMENTS continued b. CSM
» BMPL LONG-TERM INVESTMENTS continued b. CSM
» BBT LONG-TERM INVESTMENTS continued b. CSM
» Bangtelindo LONG-TERM INVESTMENTS continued b. CSM
» PROPERTY, PLANT AND EQUIPMENT
» PROPERTY, PLANT AND EQUIPMENT continued
» PROPERTY, PLANT AND EQUIPMENT UNDER REVENUE-SHARING ARRANGEMENTS “RSA”
» GOODWILL AND OTHER INTANGIBLE ASSETS continued i continued
» GOODWILL AND OTHER INTANGIBLE ASSETS continued
» TRADE PAYABLES 2009 FSTelkom30June10Eng
» TRADE PAYABLES continued Trade payables by currency are as follows:
» ACCRUED EXPENSES 2009 FSTelkom30June10Eng
» UNEARNED INCOME 2009 FSTelkom30June10Eng
» SHORT-TERM BANK LOANS FSTelkom30June10Eng
» SHORT-TERM BANK LOANS continued
» MATURITIES OF LONG-TERM LIABILITIES
» MATURITIES OF LONG-TERM LIABILITIES continued
» TWO-STEP LOANS FSTelkom30June10Eng
» TWO-STEP LOANS continued NOTES 2009
» NOTES continued FSTelkom30June10Eng
» NOTES continued c. MTN Finnet
» BANK LOANS continued FSTelkom30June10Eng
» Bank CIMB Niaga BANK LOANS continued
» BRI BANK LOANS continued f. Bank CIMB Niaga continued
» BANK LOANS continued DEFERRED CONSIDERATION FOR BUSINESS COMBINATIONS
» DEFERRED CONSIDERATION FOR BUSINESS COMBINATIONS continued
» MINORITY INTEREST 2009 FSTelkom30June10Eng
» CAPITAL STOCK FSTelkom30June10Eng
» CAPITAL STOCK continued TREASURY STOCK
» TREASURY STOCK continued FSTelkom30June10Eng
» TELEPHONE REVENUES 2009 INTERCONNECTION REVENUES 2009
» PERSONNEL EXPENSES 2009 FSTelkom30June10Eng
» INTERCONNECTION EXPENSES 2009 TAXATION FSTelkom30June10Eng
» TAXATION continued TAXATION continued
» TAXATION continued FSTelkom30June10Eng
» TAXATION continued g. Deferred tax assets and liabilities continued
» CASH DIVIDENDS AND GENERAL RESERVE
» PENSION AND OTHER POST-RETIREMENT BENEFITS 2009
» PENSION AND OTHER POST-RETIREMENT BENEFITS continued a. Pension continued
» LONG SERVICE AWARDS “LSA” Telkomsel
» POST-RETIREMENT HEALTH CARE BENEFITS
» POST-RETIREMENT HEALTH CARE BENEFITS continued
» Government RELATED PARTY TRANSACTIONS
» Indosat RELATED PARTY TRANSACTIONS continued b. Commissioners and Directors remuneration
» RELATED PARTY TRANSACTIONS continued c. Indosat continued
» Others RELATED PARTY TRANSACTIONS continued c. Indosat continued
» RELATED PARTY TRANSACTIONS continued d. Others continued
» Cash and cash equivalents Note 5
» Temporary investments RELATED PARTY TRANSACTIONS continued d. Others continued
» 921,294 Trade receivables - net Note 6 779,849
» d. Trade receivables - net Note 6 779,849
» 9,349 Trade receivables - net Note 6 779,849
» e. Trade receivables - net Note 6 779,849
» 2,280,647 RELATED PARTY TRANSACTIONS continued d. Others continued
» Trade payables Note 16 RELATED PARTY TRANSACTIONS continued
» 2,319,698 RELATED PARTY TRANSACTIONS continued
» j. RELATED PARTY TRANSACTIONS continued
» 669,335 RELATED PARTY TRANSACTIONS continued
» k. RELATED PARTY TRANSACTIONS continued
» Accrued LSA Note 43 RELATED PARTY TRANSACTIONS continued
» Accrued post-retirement health care benefits Note 44
» Accrued pension and other post-retirement
» 559,120 RELATED PARTY TRANSACTIONS continued
» o. RELATED PARTY TRANSACTIONS continued
» 3,245,834 RELATED PARTY TRANSACTIONS continued
» 9,264,440 RELATED PARTY TRANSACTIONS continued
» SEGMENT INFORMATION FSTelkom30June10Eng
» SEGMENT INFORMATION continued REVENUE-SHARING ARRANGEMENTS “RSA”
» Fixed line telephone tariffs
» RSA continued TELECOMMUNICATIONS SERVICES TARIFFS continued c. Interconnection tariffs continued
» Universal Service Obligation “USO”
» TELECOMMUNICATIONS SERVICES TARIFFS continued h. USO continued COMMITMENTS a. Capital expenditures
» COMMITMENTS continued a. Capital expenditures continued
» Others COMMITMENTS continued b. Borrowings and other credit facilities
» COMMITMENTS continued c. Others continued
» COMMITMENTS continued c. Others continued CONTINGENCIES
» CONTINGENCIES continued FSTelkom30June10Eng
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