PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
38
5. TRADE RECEIVABLES continued
b. By age continued iii Aging of total trade receivables
2016 2015
Gross Provision for
impairment of receivables
Gross Provision for
impairment of receivables
Not past due 4,535
177 4,353
266
Past due up to 3 months 1,721
401 2,235
202 Past due more than 3 to 6
months 697
495 583
216 Past due more than 6 months
3,400 1,917
3,394 2,364
Total 10,353
2,990 10,565
3,048
The Group has made provision for impairment of trade receivables based on the collective assessment of historical impairment rates and individual assessment of its customers’ credit
history. The Group does not apply a distinction between related party and third party receivables in assessing amounts past due. As of December 31, 2016 and 2015, the carrying amounts of
trade receivables of the Group considered past due but not impaired amounted to Rp3,005 billion and Rp3,430 billion, respectively. Management believes that receivables past
due but not impaired, along with trade receivables that are neither past due nor impaired, are due from customers with good credit history and are expected to be recoverable.
c. By currency i Related parties
2016 2015
Rupiah 1,300
1,328 U.S. dollar
23 Others
Total 1,300
1,351 Provision for impairment of receivables
406 247
Net 894
1,104
ii Third parties
2016 2015
Rupiah 7,565
7,761 U.S. dollar
1,437 1,436
Australian dollar 40
14 Others
11 3
Total 9,053
9,214 Provision for impairment of receivables
2,584 2,801
Net 6,469
6,413
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
39
5. TRADE RECEIVABLES continued
d. Movements in the provision for impairment of receivables
2016 2015
Beginning balance 3,048
3,096 Provision recognized during the year Note 25
743 1,010
Receivables written off 801
1,058
Ending balance 2,990
3,048
The receivables written off relate to both related party and third party trade receivables. Management believes that the provision for impairment of trade receivables is adequate to cover
losses on uncollectible trade receivables. As of December 31, 2016, certain trade receivables of the subsidiaries amounting to
Rp4,550 billion have been pledged as collateral under lending agreements Notes 15, 16b and 16c. Refer to Note 31 for details of related party transactions.
6. INVENTORIES 2016
2015
Components 299
342 SIM cards, set top boxes, and blank prepaid vouchers
168 131
Others 164
96 Total
631 569
Provision for obsolescence Components
18 14
SIM cards, set top boxes and blank prepaid vouchers 29
27 Others
Total 47
41
Net 584
528
Movements in the provision for obsolescence are as follows:
2016 2015
Beginning balance 41
43 Provision recognized during the year
11 2
Inventory written off 5
4
Ending balance 47
41
The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses as of December 31, 2016 and 2015 amounted to Rp2,105 billion
and Rp1,937 billion, respectively Note 24.
Management believes that the provision is adequate to cover losses from declines in inventory value due to obsolescence.
Certain inventories of the subsidiaries amounting to Rp256 billion have been pledged as collateral under lending agreements Notes 15, 16b and 16c.
As of December 31, 2016 and 2015, modules and components held by the Group with book value amounting to Rp199 billion and Rp219 billion, respectively, have been insured against fire, theft, and
other specific risks. Modules are recorded as part of property and equipment. Total sum insured as of December 31, 2016 and 2015 amounted to Rp220 billion and Rp291 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of inventories arising from the insured risks.
