SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
iii Future minimum lease payments under operating lease The Group entered into non-cancelable lease agreements with both third and related parties. The lease agreements cover leased lines, telecommunication equipment and land and building with terms ranging from 1 to 10 years and with expiry dates between 2017 and 2026. Periods may be extended based on the agreement by both parties. Future minimum lease paymentsreceivables under non-cancelable operating lease agreements as of March 31, 2017 are as follows : Total Less than 1 year 1-5 years More than 5 years As lessee 29,716 3,937 14,528 11,251 As lessor 2,395 918 1,270 207 The future minimum lease paymentsreceivables include payments from non-lease elements in the arrangement. In connection with the restructuring of its fixed wireless business Note 33c.ii, the Company is undertaking a negotiation to early terminate its operating lease arrangements, and has recorded provisions for early termination amounting to Rp202 billion and Rp666 billion which are presented as “Other Expense” in 2016 and 2015, respectively. As of March 31, 2017, outstanding provisions for early termination has been fully paid. The total of minimum lease payment as mentioned above includes lease agreements with telecommunication tower provider services used for the flexi fixed wireless business. iv USO The MoCI issued Regulation No. 17 year 2016 dated September 26, 2016 which replaced Decree No. 45 year 2012 and other previous regulations regarding policies underlying the USO program. The regulation requires telecommunications operators in Indonesia to contribute 1.25 of their gross revenues with due consideration for bad debts and interconnection charges for USO development. The change in the regulation stipulates, among other things, the exclusion and technical requirements of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged. Based on MoCI Decree No. 32PERM.KOMINFO102008 dated October 10, 2008 as amended by Decree No. 03PERM.KOMINFO22010 dated February 1, 2010 which replaced MoCI Decree No. 11PERM.KOMINFO042007 dated April 13, 2007 and MoCI Decree No. 38PERM.KOMINFO92007 dated September 20, 2007, it is stipulated that, among others, in providing telecommunication access and services in rural areas USO Program, the provider is determined through a selection process by Balai Telekomunikasi dan Informatika Pedesaan “BTIP” which was established based on MoCI Decree No. 35PERM.KOMINFO112006 dated November 30, 2006. Subsequently, based on Decree No. 18PERM.KOMINFO112010 dated November 19, 2010 of MoCI, BTIP was changed to Balai Penyedia dan Pengelola Pembiayaan Telekomunikasi dan Informatika “BPPPTI”. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 10434. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
Parts
» GENERAL a. Establishment and general information
» Public offering of securities of the Company
» GENERAL continued c. Public offering of securities of the Company continued
» GENERAL continued d. Subsidiaries
» GENERAL continued d. Subsidiaries continued
» Authorization for the issuance of the consolidated financial statements
» Basis of preparation of financial statements
» Principles of consolidation SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» Transactions with related parties
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» Investments in associated companies
» Inventories SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued g. Trade and other receivables
» Assets held for sale Intangible assets
» Leases SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued l.
» Borrowings SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued n. Deferred charges - land rights
» Revenue and expense recognition
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Employee benefits continued
» Income tax SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Employee benefits continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» Dividends SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» Basic and diluted earnings per share and earnings per ADS
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued z. Provision
» CASH AND CASH EQUIVALENTS continued
» OTHER CURRENT FINANCIAL ASSETS TRADE RECEIVABLES
» TRADE RECEIVABLES continued FS English Q1 2017 FINAL
» TRADE RECEIVABLES continued INVENTORIES March 31, 2017
» ADVANCES AND PREPAID EXPENSES March 31, 2017 LONG-TERM INVESTMENTS
» LONG-TERM INVESTMENTS continued FS English Q1 2017 FINAL
» LONG-TERM INVESTMENTS continued PROPERTY AND EQUIPMENT
» PROPERTY AND EQUIPMENT continued
» ADVANCES AND OTHER NON-CURRENT ASSETS continued INTANGIBLE ASSETS
» TRADE PAYABLES March 31, 2017 ACCRUED EXPENSES March 31, 2017
» SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS
» SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS continued
» US LONG-TERM LOANS AND OTHER BORROWINGS continued
» Rp LONG-TERM LOANS AND OTHER BORROWINGS continued
» LONG-TERM LOANS AND OTHER BORROWINGS continued
» Property and LONG-TERM LOANS AND OTHER BORROWINGS continued
» LONG-TERM LOANS AND OTHER BORROWINGS continued NON-CONTROLLING INTERESTS
» NON-CONTROLLING INTERESTS continued FS English Q1 2017 FINAL
» CAPITAL STOCK FS English Q1 2017 FINAL
» 2,541 ADDITIONAL PAID-IN CAPITAL March 31, 2017
» TREASURY STOCK continued OTHER EQUITY March 31, 2017 December 31, 2016
» REVENUES 2017 FS English Q1 2017 FINAL
» GENERAL AND ADMINISTRATIVE EXPENSES TAXATION
» TAXATION continued FS English Q1 2017 FINAL
» 2016 The Company FS English Q1 2017 FINAL
» TAXATION continued BASIC AND DILUTED EARNINGS PER SHARE
» PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued
» Other post-employment benefits cost
» Obligation under the Labor Law
» LSA PROVISIONS FS English Q1 2017 FINAL
» Advances and prepaid expenses Note 7 Advances and other non - current assets Note 10
» 625 Indosat Trade payables Note 12
» State-owned enterprises Trade payables Note 12
» 1,097 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» Yakes Other related entities
» Sub-total Other related entities
» 1,547 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» 12 Entities under common control
» 31 March 31, 2017 Advances from customers and suppliers
» Two-step loans Note 16a 1,282
» 1,292 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» 6,325 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» RELATED PARTY TRANSACTIONS continued c. Significant agreements with related parties
» OPERATING SEGMENT continued FS English Q1 2017 FINAL
» Fixed line telephone tariffs
» Mobile cellular telephone tariffs
» Network lease tariffs TELECOMMUNICATIONS SERVICE TARIFFS continued
» Tariff for other services Capital expenditures
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued a. Capital expenditures continued
» Others SIGNIFICANT COMMITMENTS AND AGREEMENTS continued b. Borrowings and other credit facilities
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued CONTINGENCIES
» CONTINGENCIES continued ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
» FINANCIAL RISK MANAGEMENT continued
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