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
95
45. RELATED PARTY TRANSACTIONS continued c. Indosat continued
The Company also has an agreement with Indosat for the interconnection of Indosats GSM mobile cellular telecommunications network with the Companys PSTN, enabling each party’s
customers to make domestic calls between Indosat’s GSM mobile network and the Company’s fixed line network and allowing Indosat’s mobile customers to access the Company’s IDD service
by dialing “007”.
The Company has been handling customer billings and collections for Indosat. Indosat is gradually taking over the activities and performing its own direct billing and collection. The
Company receives compensation from Indosat computed at 1 of the collections made by the Company beginning January 1, 1995, plus the billing process expenses which are fixed at a
certain amount per record. On December 11, 2008, the Company and Indosat agreed to implement IDD service charge tariff, the tariff already taken into account the compensation of its
billing and collection. The agreement is valid and effective starting on January to December 2009, and can be applied until a new Minutes of Agreement available.
On December 28, 2006, the Company and Indosat signed amendments to the interconnection agreements for the fixed line networks local, SLJJ and international and mobile network for the
implementation of the cost-based tariff obligations under the MoCI Regulations No. 82006 Note 48. These amendments took effect on January 1, 2007.
Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to its GSM mobile cellular customers. The principal matters covered
by the agreement are as follows:
i. Telkomsel’s GSM mobile cellular telecommunications network is interconnected with PT Indosat’s international gateway exchanges to facilitate outgoing and incoming
international calls. ii. Telkomsel’s and Indosat’s GSM mobile cellular telecommunications networks are
interconnected to allow cross-network communications among their subscribers. iii. In exchange for these interconnections, Indosat is entitled to a certain amount as
compensation. iv. Interconnection equipment installed by one of the parties in another party’s premises remain
the property of the party installing such equipment. Expenses incurred in connection with the provision of equipment, installation and maintenance are borne by Telkomsel.
The Company and its subsidiaries were charged net interconnection charges from Indosat of Rp.589,485 million and Rp.475,006 million for six months period ended June 30, 2009 and 2010,
respectively, representing 1.9 and 1.4 of the total operating revenues for each period.
The Company and its subsidiaries were earned net interconnection income from Indosat of Rp.554,683 million and Rp.456,399 million for six months period ended June 30, 2009 and 2010,
respectively, representing 2.9 and 2.0 of the total operating revenues for each period.
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
96
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”.
