PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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50. TELECOMMUNICATIONS SERVICES TARIFFS continued
Public Phone Kiosk “Wartel” Tariff
On August 7, 2002, the Minister of Communications issued Decree No. KM. 46 year 2002 regarding the operation of phone kiosks. The decree provides that the Company is entitled to retain a maximum
of 70 of the phone kiosk basic tariffs for domestic calls and up to 92 of phone kiosk basic tariffs for international calls. It also provides that the airtime from the cellular operators shall generate at a
minimum 10 of the kiosk phones’ revenue.
Tariff for Other Services
The tariffs for satellite rental, and other telephony and multimedia services are determined by the service provider by taking into account the expenditures and market price. The Government only
determines the tariff formula for basic telephony services. There is no stipulation for the tariff of other services.
Universal Service Obligation “USO” On September 30, 2005, the MoCI issued Regulation No. 15PERM.KOMINFO92005, which sets
forth the basic policies underlying the USO program and requires telecommunications operators in Indonesia to contribute 0.75 of gross revenues with due consideration for bad debt and
interconnection charges for USO development.
51. COMMITMENTS
a. Capital Expenditures As of September 30, 2006, the amount of capital expenditures committed under contractual
arrangements, principally relating to procurement and installation of switching equipment, transmission equipment and cable network, are as follows:
Amounts in Foreign Currencies Equivalent
in millions in Rupiah
Rupiah -
5,407,240 U.S. Dollar
415 3,826,333
Euro 180
2,103,675 Japanese Yen
24 1,878
Total 11,339,126
Currencies
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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51. COMMITMENTS continued
a. Capital Expenditures continued
The above balance includes the following significant agreements:
i Procurement Agreements
In August 2004, Telkomsel entered into the following agreements with Motorola Inc. and PT Motorola Indonesia, Ericsson AB and PT Ericsson Indonesia, Nokia Corporation and
PT Nokia Network, and Siemens AG, for the maintenance and procurement of equipment and related services:
•
Joint Planning and Process Agreement
•
Equipment Supply Agreement “ESA”
•
Technical Service Agreement “TSA”
•
Site Acquisition and Civil, Mechanical and Engineering Agreement “SITAC” and “CME”
The agreements contain lists of charges “Price List” to be used in determining the fees payable by Telkomsel for all equipment and related services to be procured during the roll-
out period upon the issuance of Purchase Order “PO”.
The agreements are valid and effective as of the execution date “Effective Date” by the respective parties for a period of three years, provided that the suppliers are able to meet
requirements set out in each PO. In the event that the suppliers fail to meet those requirements, Telkomsel may terminate the agreements at its sole discretion with a prior
written notice.
In accordance with the agreements, the parties also agreed that the charges specified in the Price List will also apply to equipment and technical services ESA and TSA and services
SITAC and CME acquired from the suppliers between May 26, 2004 and the Effective Date “Pre-Effective Date Pricing”, except for those acquired from Siemens under TSA
which are applicable for certain equipment and the related maintenance services acquired or rendered between July 1, 2004 and the Effective Date. Prices as well as discounts thereon
are subject to a quarterly review.
ii CDMA Procurement Agreement with Samsung Consortium
On October 9, 2002, the Company signed an Initial Purchase Order Contract for CDMA 2000-IX with Samsung Consortium for Base Station Subsystem “BSS” procurement in
Regional Divisions V, VI and VII and on December 23, 2002, the Company signed a Master Procurement Partnership Agreement “MPPA”, which is related to the construction
of Network and Switching Subsystem “NSS” for nationwide and BSS for Regional Divisions IV, V, VI, and VII. As of September 30, 2006, the Company’s remaining
purchase commitment in connection with this MPPA amounted to US29.96 million and Rp19,017 million.
Samsung Consortium will service and maintain the CDMA 2000 IX system that it constructs, pursuant to a Service Level Agreement dated the same date as the MPPA in
return for an annual consideration of US11.6 million.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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51. COMMITMENTS continued
a. Capital Expenditures continued
iii CDMA Procurement Agreement with Ericsson CDMA Consortium
The Company and Ericsson CDMA Consortium entered into a Master Procurement Partnership Agreement “MPPA” on December 23, 2002. The MPPA is related to the
construction of BSS for Regional Division II. As of September 30, 2006, the Company’s remaining purchase commitment in connection with this MPPA amounted to US2.76
million and Rp3,298 million.
Ericsson Consortium will service and maintain the CDMA 2000 IX system that it constructs, pursuant to a Service Level Agreement dated the same date as the MPPA in
return for an annual consideration of US5.3 million.
iv MPPA with PT INTI
The Company and PT INTI signed an MPPA on August 26, 2003 whereby PT INTI is appointed to construct a CDMA fixed wireless access network and integrate such network
with the Companys existing network and all ancillary services relating thereto in West Java and Banten. As of September 30, 2006, the Company’s remaining purchase commitment in
connection with this MPPA amounted to US0.33 and Rp50 million.
PT INTI will service and maintain the CDMA 2000 IX system that it constructs, pursuant to a Service Level Agreement dated the same date as the MPPA in return for an annual
consideration of US2.3 million.
v MPPA with Motorola
On March 24, 2003, the Company signed an MPPA with Motorola, Inc. Under the MPPA, Motorola is obliged to construct a CDMA fixed wireless access network and integrate such
network with the Company’s existing network and all ancillary services relating thereto in Regional Division I. As of September 30, 2006, the Company’s remaining purchase
commitment in connection with this MPPA amounted to US1.02 and Rp338 million.
Motorola, Inc. will service and maintain the CDMA 2000 IX system that it constructs, pursuant to a Service Level Agreement dated the same date as the MPPA in return for an
annual consideration of US3 million.
vi Metro Junction and Optical Network Access Agreement for Regional Division III with PT INTI
On November 12, 2003, the Company entered into an agreement with PT INTI for the construction and procurement of an optical network, as well as a network management
system and other related services and equipment, with respect to Regional Division III West Java. Under this agreement and its amendment, the Company is obliged to pay PT
INTI total consideration of approximately US6.6 million and Rp111,655 million. As of September 30, 2006, the Company has paid andor accrued a total of US2.9 million plus
Rp59,018 million.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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51. COMMITMENTS continued
a. Capital
Expenditures continued
vii Ring JASUKA Backbone with NEC-Siemens Consortium
On June 10, 2005, the Company entered into an agreement with NEC-Siemens Consortium for the procurement and installation of an optical cable transmission of RING I link Jakarta
– Tanjung Pandan – Pontianak – Batam – Dumai – Pekanbaru – Palembang – Jakarta and RING II link Medan – Padang – Pekanbaru – Medan. Under this agreement, and its latest
amendment the Company is obliged to pay NEC-Siemens Consortium total consideration of approximately US45 million and Rp161,261 million. This agreement is based on a turnkey
arrangement. As of September 30, 2006, the Company has paid andor accrued a total of US45 million plus Rp129.795 million.
viii Aprotech Consortium
On August 26, 2006, the Company entered into procurement and installation agreement with Aprotech Consortium for MSOAN year 2005 package-3 expansion with respect to
Regional Division II Jakarta, located in Southern Jakarta. Under this agreement, the Company is obliged to pay Aprotech Consortium total consideration of approximately
Rp31,091 million.
ix IP Backbone Siemens
On September 26, 2006, the Company entered into procurement and installation agreement with PT Siemens Indonesia for IP Core Backbone expansion. Under this agreement, the
Company is obliged to pay PT Siemens Indonesia total consideration of approximately Rp24,255 million.
x PT INTI RMJ SDH Optic
On September 4, 2006, the Company entered into procurement and installation agreement with PT INTI for RMJ SDH Optic with respect to Regional Division I Sumatra. Under
this agreement, the Company is obliged to pay PT INTI total consideration of approximately Rp7,875 million.
xi PT INTI Flexi Terminal
On September 26, 2006, the Company entered into sale and purchase agreement with PT INTI for flexi home terminal 2006 package 1. Under this agreement, the Company is
obliged to pay PT INTI total consideration of approximately Rp32,890 million. The quantity ordered may be adjusted to 60 from total terminal needed which expected to be
received at end of 2006.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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51. COMMITMENTS continued
