NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
35
4. TRADE RECEIVABLES continued
b. By age continued ii Third parties
June 30, December 31,
2012 2011
Up to 3 months 3,578
3,153 More than 3 months
2,205 2,479
Total 5,783
5,632 Less provision for impairment of receivables
1,668 1,649
Net 4,115
3,983
c. By currency i Related parties
June 30, December 31,
2012 2011
Rupiah 1,474
972 U.S. Dollars
55 43
Total 1,529
1,015 Less provision for impairment of receivables
89 83
Net 1,440
932
ii Third parties
June 30, December 31,
2012 2011
Rupiah 5,104
4,829 U.S. Dollars
677 802
Euro 2
1 Total
5,783 5,632
Less provision for impairment of receivables 1,668
1,649
Net 4,115
3,983
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
36
4. TRADE RECEIVABLES continued
d. Movements in the provision for impairment of receivables
June 30, December 31,
2012 2011
Beginning balance 1,732
1,445 Provision recognized during the period Note 28
452 856
Receivables written-off 427
569
Ending balance 1,757
1,732
Receivables written-off are write-offs of third party’s trade receivables. Management believes that the provision for impairment of receivables is adequate to cover losses
on uncollectible trade receivables. Certain trade receivables of the Company’s subsidiaries have been pledged as collateral for
lending agreements Notes 15 and 19. Refer to Note 36 for details of related party transactions.
5. INVENTORIES
June 30, December 31,
2012 2011
Components 366
329 Modules
293 297
SIM cards, RUIM cards, set top box and prepaid voucher blanks 155
238 Total
814 864
Provision for obsolescence Components
18 15
Modules 86
91 SIM cards, RUIM cards, set top box and
prepaid voucher blanks Total
104 106
Net 710
758
Movements in the provision for impairment are as follows:
June 30, December 31,
2012 2011
Beginning balance 106
83 Provisions of inventory recognized during the period Note 28
13 27
Inventories written-off 15
4
Ending balance 104
106
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
37
5. INVENTORIES continued
The cost of inventories recognised as expense and included in operations, maintenance, and telecommunication services expenses Note 27 as of June 30, 2012 and December 31, 2011
amounted to Rp.359 billion and Rp.818 billion, respectively. Management believes that the provision is adequate to cover losses from declines in inventory value
due to obsolescence. Certain inventories of the Company’s subsidiaries have been pledged as collateral for lending
agreements Notes 15 and 19. As of June 30, 2012 and December 31, 2011 , modules and components held by the Company and
its subsidiaries have been insured against fire, theft, all industrial risks, loss risk during delivery and other specific risks with the total sum insured as of June 30, 2012 and December 31, 2011 is
amounting to Rp.241 billion and Rp.235 billion, respectively. Management believes that the insurance coverage is adequate to cover potential losses of the
insured inventories.
6. ADVANCES AND PREPAID EXPENSES
June 30, December 31,
2012 2011
Frequency license Notes 40c.i and 40c.iii 1,354
2,211 Rental
848 530
Salaries 454
201 Advances
215 184
Others each below Rp.50 billion 158
168
Total 3,029
3,294
Refer to Note 36 for details of related party transactions. 7. ASSETS HELD FOR SALE
This account represents the carrying amount of Telkomsel’s equipment to be exchanged with equipment of Nokia Siemens Network Oy “NSN Oy” and PT Huawei Tech Investment “PT
Huawei”. The amount will be used as a part of the settlement for acquisition of equipment from those companies.
In 2012, the Telkomsel’s equipment with a net carrying amount of Rp.403 billion were exchanged to NSN Oy and PT Huawei.
