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
44
11. PROPERTY, PLANT AND EQUIPMENT continued
d. Others continued ix The Company has lease commitments for transmission installation, vehicle, data processing
and other equipment, with the option to purchase the leased assets at the end of the lease terms. Future minimum lease payments for the assets under capital leases as of
September 30, 2007 and 2008 are as follows:
Year 2007
2008
2007 19,541
- 2008
78,373 105,815
2009 78,161
108,743 2010
78,161 100,921
2011 78,161
68,448 2012
48,916 30,143
Later -
5,445 Total minimum lease payments
381,313 419,515
Interest 164,405
134,435 Net present value of minimum lease payments
216,908 285,080
Current maturities Note 20a 26,025
56,700
Long-term portion Note 20b 190,883
228,380 12. PROPERTY, PLANT AND EQUIPMENT UNDER REVENUE-SHARING ARRANGEMENTS “RSA”
January 1, September 30,
2007 Additions
Deduction Reclassifications 2007
At cost: Land
4,646 -
- -
4,646 Buildings
5,110 -
- -
5,110 Switching equipment
365,293 -
- 46,461
318,832 Transmission installation
and equipment 296,365
- 47,106
40,688 208,571
Cable network 618,845
- -
14,083 604,762
Other telecommunications peripherals
168,754 -
- 862
167,892 Total
1,459,013 -
47,106 102,094
1,309,813
Accumulated depreciation:
Land 2,703
174 -
- 2,877
Buildings 2,926
191 -
- 3,117
Switching equipment 172,341
19,115 -
73 191,383
Transmission installation and equipment
103,253 22,431
16,545 9,566
99,573 Cable network
124,740 30,024
- 1,063
153,701 Other telecommunications
peripherals 87,418
17,988 -
- 105,406
Total 493,381
89,923 16,545
10,702 556,057
Net Book Value 965,632
753,756
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
45
12. PROPERTY, PLANT AND EQUIPMENT UNDER RSA continued
January 1, September 30,
2008 Additions
Reclassifications 2008
At cost:
Land 4,646
- 222
4,424 Buildings
3,982 -
225 3,757
Switching equipment 286,688
- 6,734
279,954 Transmission installation
and equipment 179,785
- 44,125
135,660 Cable network
583,353 -
35,850 547,503
Other telecommunications peripherals
149,200 -
- 149,200
Total 1,207,654
- 87,156
1,120,498
Accumulated depreciation:
Land 2,935
126 -
3,061 Buildings
2,435 148
48 2,535
Switching equipment 169,663
17,916 1,880
185,699 Transmission installation
and equipment 90,141
9,291 19,865
79,567 Cable network
144,603 35,915
12,657 167,861
Other telecommunications peripherals
92,786 18,111
- 110,897
Total 502,563
81,507 34,450
549,620
Net Book Value 705,091
570,878
In accordance with RSA, the ownership rights to the property, plant and equipment under RSA are legally retained by the investors until the end of the revenue-sharing periods.
The balances of unearned income on RSA as of September 30, 2007 and 2008, are as follows:
2007 2008
Gross amount 1,309,814
1,120,498 Accumulated amortization:
Beginning balance 641,839
704,269 Additions Note 34
212,468 166,851
Deductions 102,094
87,156 Ending balance
752,213 783,964
Net 557,601
336,534
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
46
13. ADVANCES AND OTHER NON-CURRENT ASSETS
Advances and other non-current assets as of September 30, 2007 and 2008 consist of:
2007 2008
Prepaid rent - net of current portion Note 8 -
863,451 Advances for purchase of property, plant and equipment
233,143 721,648
Deferred land rights charges 82,388
105,122 Security deposits
36,950 50,136
Equipment not used in operations - net 66,113
48,444 Restricted cash
92,280 1,514
Others 81,874
167,441
Total 592,748
1,957,756
Deferred land rights charges represent costs to extend the contractual life of the land rights which have been deferred and amortized over the contractual life Note 11d.iv.
As of September 30, 2008, equipment not used in operations represents Base Transceiver Station BTS and other equipment of the Company and Telkomsel temporarily taken out from operations but
planned to be reinstalled. Telkomsel’s depreciation charged to the consolidated statement of income for the nine months period ended September 30, 2007 and 2008 amounted to Rp.20,118 million and
Rp.9,261 million, respectively.
As of September 30, 2007 and 2008, certain Telkomsel’s equipment with a net carrying amount of Rp.116,336 million and Rp.1,131 million, respectively, was re-installed and subsequently reclassified
to property, plant and equipment Note 11.
As of September 30, 2007 and 2008, restricted cash represented cash received from the Government relating to compensation for early termination of exclusive rights to be used for the construction of
certain infrastructures Notes 1a and 29 and time deposits with original maturities of more than one year pledged as collateral for bank guarantees.
Refer to Note 44 for details of related party transactions.
14. GOODWILL AND OTHER INTANGIBLE ASSETS
i The changes in the carrying amount of goodwill and other intangible assets for the nine months
period ended September 30, 2007 and 2008 are as follows:
Other intangible
Goodwill assets
License Total
Gross carrying amount: Balance, September 30, 2007
106,348 7,602,847
436,000 8,145,195
Accumulated amortization: Balance, December 31, 2006
106,348 3,590,563 11,679 3,708,590
Amortization expense for 9 months period Note 37
- 751,968
35,036 787,004
Balance, September 30, 2007 106,348
4,342,531 46,715
4,495,594
Net Book Value -
3,260,316 389,285
3,649,601
Weighted-average amortization period -
7.58 years 9.50 years
