PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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51. COMMITMENTS continued
a. Capital Expenditures continued
The above balance includes the following significant agreements:
i Procurement Agreements
In August 2004, Telkomsel entered into the following agreements with Motorola Inc. and PT Motorola Indonesia, Ericsson AB and PT Ericsson Indonesia, Nokia Corporation and
PT Nokia Network, and Siemens AG, for the maintenance and procurement of equipment and related services:
•
Joint Planning and Process Agreement
•
Equipment Supply Agreement “ESA”
•
Technical Service Agreement “TSA”
•
Site Acquisition and Civil, Mechanical and Engineering Agreement “SITAC” and “CME”
The agreements contain lists of charges “Price List” to be used in determining the fees payable by Telkomsel for all equipment and related services to be procured during the roll-
out period upon the issuance of Purchase Order “PO”.
The agreements are valid and effective as of the execution date “Effective Date” by the respective parties for a period of three years, provided that the suppliers are able to meet
requirements set out in each PO. In the event that the suppliers fail to meet those requirements, Telkomsel may terminate the agreements at its sole discretion with a prior
written notice.
In accordance with the agreements, the parties also agreed that the charges specified in the Price List will also apply to equipment and technical services ESA and TSA and services
SITAC and CME acquired from the suppliers between May 26, 2004 and the Effective Date “Pre-Effective Date Pricing”, except for those acquired from Siemens under TSA
which are applicable for certain equipment and the related maintenance services acquired or rendered between July 1, 2004 and the Effective Date. Prices as well as discounts thereon
are subject to a quarterly review.
ii CDMA Procurement Agreement with Samsung Consortium
On October 9, 2002, the Company signed an Initial Purchase Order Contract for CDMA 2000-IX with Samsung Consortium for Base Station Subsystem “BSS” procurement in
Regional Divisions V, VI and VII and on December 23, 2002, the Company signed a Master Procurement Partnership Agreement “MPPA”, which is related to the construction
of Network and Switching Subsystem “NSS” for nationwide and BSS for Regional Divisions IV, V, VI, and VII. As of September 30, 2006, the Company’s remaining
purchase commitment in connection with this MPPA amounted to US29.96 million and Rp19,017 million.
Samsung Consortium will service and maintain the CDMA 2000 IX system that it constructs, pursuant to a Service Level Agreement dated the same date as the MPPA in
return for an annual consideration of US11.6 million.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 115
51. COMMITMENTS continued
