PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008,
AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated
89
44. RELATED PARTY TRANSACTIONS continued a. Government continued
ii. continued Concession fees amounted to Rp.417,078 million and Rp. 446,983 million for the nine
months period ended September 30, 2007 and 2008, respectively Note 36, representing 1.6, respectively, of the total operating expenses for each period. Radio frequency usage
charges amounted to Rp.792,494 million and Rp.1,718,590 million for the nine months period ended September 30, 2007 and 2008, respectively Note 36, representing 3.1 and 6.3,
respectively, of the total operating expenses for each period.
Telkomsel paid an up-front fee for the 3G license amounting to Rp.436,000 million and recognized as intangible asset Note 14.
iii. Starting 2005, the Company and its subsidiaries pay USO charges to the Ministry of Communication and Information of the Republic of Indonesia pursuant to MoCI Regulation
No.15PerM.KOMINFO92005 of September 30, 2005. USO charges amounted to Rp.335,635 million and Rp.333,470 million for the nine months
period ended September 30, 2007 and 2008, respectively Note 36, representing 1.3 and 1.2, respectively, 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.22,518 million and Rp.40,249 million for the nine months period ended
September 30, 2007 and 2008, respectively, representing 0.1 and 0.2 of 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.65,956 million
and Rp.99,779 million for the nine months period ended September 30, 2007 and 2008, respectively, representing 0.3 and 0.4 of 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.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008,
AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated
90
44. RELATED PARTY TRANSACTIONS continued c. Indosat continued
The principal matters covered by the agreement are as follows: i. The Company provides a local network for customers to make or receive international calls.
Indosat provides the international network for the customers, except for certain border towns, as determined by the Director General of Post and Telecommunications of the Republic of
Indonesia. The international telecommunications services include telephone, telex, telegram, Package Switched Data Network PSDN, television, teleprinter, Alternate
VoiceData Telecommunications AVD, hotline and teleconferencing.
ii. The Company and Indosat are responsible for their respective telecommunications facilities. iii. Customer billing and collection, except for leased lines and public phones located at the
international gateways, are handled by the Company. iv. The Company receives compensation for the services provided in the first item above, based
on the interconnection tariff determined by the MoC. The Company has also entered into an interconnection agreement between the Company’s fixed
line network Public Switched Telephone Network or “PSTN” and Indosat’s cellular network in connection with implementation of Indosat Multimedia Mobile services and the settlement of the
related interconnection rights and obligations.
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 Telkom’s fixed line network and allowing Indosat’s mobile customers to access Telkom’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 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.
