PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
continued
DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED
Figures in tables are presented in millions of Rupiah, unless otherwise stated
96
43. POST-RETIREMENT HEALTH CARE BENEFITS
continued The movements of the accrued post-retirement health care benefits costs for the years ended
December 31, 2010 and three months period ended March 31, 2011, are as follows:
December 31, March 31, 2010
2011
Accrued post-retirement health care benefits costs at beginning of year
1,801,776 1,050,030
Net periodic post-retirement health care benefits costs less amounts charged to subsidiaries Note 34
238,254 49,835
Amounts charged to subsidiaries under contractual agreements
688 -
Employer’s contributions 990,688
108,000
Accrued post-retirement health care benefits costs at end of year
1,050,030 991,865
The actuarial valuation for the post-retirement health care benefits was performed based on the measurement date as of December 31, 2009 and 2010, with reports dated March 30, 2010 and
March 15, 2011, respectively, by TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary as of December 31, 2009 and
2010, are as follows:
December 31, December 31, 2009
2010
Discount rate 10.75
9.5 Expected long-term return on plan assets
9.25 8.21
Health care costs trend rate assumed for next year
10 8
Ultimate health care costs trend rate 8
8 Year that the rate reaches the ultimate trend rate
2012 2011
44. RELATED PARTY TRANSACTIONS In the normal course of business, the Company and its subsidiaries entered into transactions with
related parties. It is the Companys policy that the pricing of these transactions be the same as those of arm’s-length transactions.
The following are significant agreementstransactions with related parties:
a. Government
i. The Company obtained two-step loans from the Government, the Companys majority stockholder Note 20.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
continued
DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED
Figures in tables are presented in millions of Rupiah, unless otherwise stated
97
44. RELATED PARTY TRANSACTIONS
continued
a. Government continued
i. continued Interest expense for two-step loans amounted to Rp.40,850 million and Rp.37,993 million for
three months period ended March 31, 2010 and 2011, respectively. Interest expense for two- step loans represent 8.1 and 9.4 of the total interest expense for each period.
ii. The Company and its subsidiaries pay concession fees for telecommunications services provided and radio frequency usage charges to the Ministry of Communications and
Information of the Republic of Indonesia. Concession fees amounted to Rp.82,430 million and Rp.85,470 million for three months
period ended March 31, 2010 and 2011, respectively Note 35, representing 0.7 of the total operating expenses for each period. Radio frequency usage charges amounted to
Rp.907,921 million and Rp.946,908 million for three months period ended March 31, 2010 and 2011, respectively Note 35, representing 8.2 of the total operating expenses for each
period.
Telkomsel paid an up-front fee for the 3G license amounting to Rp.756,000 million and recognized an intangible asset Note 13.iii.
iii. Starting 2005, the Company and its subsidiaries pay USO charges to the Ministry of Communications and Information of the Republic of Indonesia pursuant to MoCI Regulation
No.15PerM.KOMINFO92005 of September 30, 2005. USO charges amounted to Rp.201,811 million and Rp.204,451 million for three months
period ended March 31, 2010 and 2011, respectively Note 35, representing 1.8 of the total operating expenses for each period.
b. Commissioners and Directors remuneration
i. The Company and its subsidiaries provide honorarium and facilities to support the operational duties of their Board of Commissioners. The total of such benefits amounted to Rp.11,460
million and Rp.11,538 million for three months period ended March 31, 2010 and 2011, respectively, representing 0.1 of the total operating expenses for each period.
ii. The Company and its subsidiaries provide salaries and facilities to support the operational duties of their Board of Directors. The total of such benefits amounted to Rp.31,220 million
and Rp.37,818 million for three months period ended March 31, 2010 and 2011, respectively, representing 0.3 of the total operating expenses for each period.
c. Indosat
The Company considers Indosat as a related party because the Government can exert significant influence over the financial and operating policies of Indosat by virtue of its right to appoint one
Director and one Commissioner of Indosat.
The Company has an agreement with Indosat for the provision of international telecommunications services to the public.
