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
88
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued e. Maturity Profile of Defined Benefit Obligation “DBO”
The timing of benefits payments and weighted average duration of DBO for 2016 are as follows in billions of Rupiah:
Expected Benefits Payment The Company
Post-employment health care
benefits Other post-
employment benefits
Time Period Funded Unfunded Telkomsel
Within next 10 years 16,583
2,822 1,653
6,152 563
Within 10-20 years 20,052
263 6,257
8,401 139
Within 20-30 years 17,289
29 5,758
8,648 47
Within 30-40 years 11,827
5 936
6,711 3
Within 40-50 years 2,872
- -
2,986 -
Within 50-60 years 238
- -
245 -
Within 60-70 years 9
- -
1 -
Within 70-80 years -
- -
- -
Weighted average duration of DBO
9.15 years 4.33 years 11.33 years 13.81 years
3.62 years
f. Sensitivity Analysis
1 change in discount rate and rate of compensation would have effect on DBO, as follows :
Discount Rate Rate of Compensation
1 Increase 1 Decrease
1 Increase 1 Decrease
Sensitivity Increase decrease in amounts
Increase decrease in amounts
Funded 1,644
1,937 400
413 Unfunded
67 72
69 69
Telkomsel 112
121 120
112 Post-employment health care
benefits 1,633
1,991 2,152
1,785
Other post-employment benefits 16
17 -
- The sensitivity analysis has been determined based on a method that extrapolates the impact on
DBO as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
The sensitivity results above determine the individual impact on the Plan’s DBO at the end of the year. In reality, the Plan is subject to multiple external experience items which may move the DBO
in similar or opposite directions, and the Plan’s sensitivity to such changes can vary over time. There are no changes in the methods and assumptions used in preparing the sensitivity analysis
from the previous period.
30. LSA PROVISIONS
Telkomsel and Patrakom provide certain cash awards or certain number of days leave benefits to their employees based on the employees’ length of service requirements, including LSA and LSL. LSA are
either paid at the time the employees reach certain years of employment, or at the time of termination. LSL are either certain number of days leave benefit or cash, subject to approval by management,
provided to employees who meet the requisite number of years of service and reach a certain minimum age.
The obligation with respect to these awards which was determined based on an actuarial valuation using the Projected Unit Credit method, amounted to Rp614 billion and Rp613 billion as of
March 31, 2017 and December 31, 2016, respectively. The related benefit costs charged to expense amounted to Rp30 billion and Rp27 billion for the three month periods ended March 31, 2017 and
2016, respectively Note 23.
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
89
31. RELATED PARTY TRANSACTIONS a. Nature of relationships and accountstransactions with related parties
Details of the nature of relationships and accountstransactions with significant related parties are as follows:
Related parties Nature of relationships parties
Nature of accountstransactions
The Government
Ministry of Finance Majority stockholder
Internet and data service revenues, other telecommunication service revenues, finance
income, finance costs, and investment in financial instruments
State-owned enterprises Entity under common control
Internet and data service revenues, other telecommunication services revenues, operating
expenses and purchase of property and equipment Indosat
Entity under common control Interconnection revenues, leased lines revenues,
satellite transponder usage revenues, interconnection expenses, telecommunication
facilities usage expenses, operating and maintenance expenses, usage of data
communication network system expenses
PT Aplikanusa Lintasarta
“Lintasarta” Entity under common control
Interconnection revenues, network service revenues, leased lines expenses, and usage of communication
network system expenses Indosat Mega Media
Entity under common control Network service revenues
PT Perusahaan Listrik Negara
“PLN” Entity under common control
Electricity expenses, finance income, finance costs, investment in financial instrument
PT Pertamina Persero
“Pertamina” Entity under common control
Internet and data service revenues, other telecommunication service revenues
PT Kereta Api Indonesia “KAI” Entity under common control Internet and data service revenues, other
telecommunication service revenues PT Pegadaian
Entity under common control Internet and data service revenues, other
telecommunication service revenues PT Garuda Indonesia Tbk
Entity under common control Internet and data service revenues, other
telecommunication service revenues PT Indonesia Comnet Plus
“ICON Plus” Entity under common control
Internet and data service revenues, other telecommunication service revenues, interconnection
revenues, network revenues and interconnection expenses
PT Asuransi Jasa Indonesia
“Jasindo” Entity under common control
Satellite insurance expenses and vehicle insurance expenses
PT Adhi Karya Tbk
“Adhi Karya” Entity under common control
Purchase of materials and construction services
PT Waskita Karya Tbk
“Waskita” Entity under common control
Purchase of materials and construction services INTI
Entity under common control Purchase of property and equipment and
construction services
LEN Entity under common control
Purchase of property and equipment and construction services
State-owned banks Entity under common control
Finance income and finance costs BNI
Entity under common control Internet and data service revenues, other
telecommunication service revenues, finance income and finance costs
Bank Mandiri Entity under common control
Internet and data service revenues, other telecommunication service revenues, finance income
and finance costs BRI
Entity under common control Internet and data service revenues, other
telecommunication service revenues, finance income and finance costs
BTN Entity under common control
Internet and data service revenues, other telecommunication service revenues, finance income
and finance costs