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
119
50. CONTINGENCIES continued
g. The Company, Telkomsel and seven other local operators are being investigated by the KPPU for allegation of SMS cartel practices. As a result of the investigations, KPPU found that the
Company, Telkomsel and certain other local operators had proven to violate Law No. 51999 article 55 and gave the Company and Telkomsel Rp.18,000 million penalty and Rp.25,000 million
penalty, respectively. Pursuant to the decision of KPPU dated June 17, 2008, the Company and Telkomsel have filed an objection with the Court on July 14, 2008 and July 11, 2008, respectively.
As of the issuance date of the consolidated financial statements, no decision has been reach on the appeal.
For the matters and cases stated above, the Company and its subsidiaries do not believe that any subsequent investigation or court decision will have significant financial impact to the Company and
its subsidiaries.
51. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
The balances of monetary assets and liabilities denominated in foreign currencies are as follows:
2007 2008
Foreign Foreign
currencies Rupiah
currencies Rupiah
in millions equivalent in millions equivalent
Assets Cash and cash equivalents
U.S. Dollars 184.44
1,686,735 98.87
929,660 Euro
72.79 943,733
41.78 574,088
Singapore Dollars -
- 0.53
3,502 Japanese Yen
2.10 166
3.15 283
Temporary investments U.S. Dollars
- -
7.13 67,192
Japanese Yen -
- 220.04
19,784 Trade receivables
Related parties U.S. Dollars
8.87 81,102
0.96 9,036
Third parties U.S. Dollars
48.74 445,762
46.58 439,026
Other receivables Great Britain Pound sterling
- -
0.01 210
Euro -
- 0.01
87 U.S. Dollars
0.80 7,328
0.01 84
Other current assets U.S. Dollars
0.15 1,386
4.01 37,828
Euro 0.05
644 0.06
874 Advances and other non-current assets
U.S. Dollars 6.79
62,107 21.72
204,638 Escrow accounts
U.S. Dollars -
- 4.52
42,572
Total assets 3,228,963
2,328,864
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
120
51. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued
2007 2008
Foreign Foreign
currencies Rupiah
currencies Rupiah
in millions equivalent in millions equivalent
Liabilities Trade payables
Related parties U.S. Dollars
3.42 31,273
19.51 183,975
Singapore Dollars 0.01
21 -
- Euro
- -
0.01 86
Third parties U.S. Dollars
191.95 1,756,388
346.37 3,251,130
Euro 91.57
1,188,029 159.67
2,195,632 Singapore Dollars
0.38 2,337
1.31 8,660
Great Britain Pound sterling 0.01
101 -
- Japanese Yen
- -
0.51 46
Swiss Franc -
- 0.00
14 Myanmar Kyat
- -
0.01 20
Hongkong Dollars -
- 0.01
11 Other payables
U.S. Dollars -
- 0.07
668 Accrued expenses
U.S. Dollars 163.92
1,499,832 11.40
107,554 Euro
87.62 1,136,894
- -
Japanese Yen 156.49
12,403 144.20
12,980 Singapore Dollars
0.38 2,332
0.61 4,008
Great Britain Pound sterling 0.05
844 -
- Advances from customers and suppliers
U.S. Dollars 0.49
4,470 11.44
107,964 Current maturities of long-term liabilities
U.S. Dollars 146.04
1,336,251 124.86
1,177,965 Japanese Yen
1,142.91 90,587
767.90 69,126
Euro 14.63
189,840 -
- Long-term liabilities
U.S. Dollars 414.80
3,795,389 289.64
2,732,788 Japanese Yen
12,670.31 1,004,249
11,902.41 1,071,455
Total liabilities 12,051,240
10,924,082
Net liabilities 8,822,277
8,595,218
The Company and its subsidiaries’ activities expose them to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates and interest
rates.
The Company and its subsidiaries’ overall risk management programs focus on the unpredictability of financial markets and seek to minimize potential adverse effects on the financial performance of the
Company and its subsidiaries. Management provides written policy for foreign currency risk management mainly through time deposits placements and hedging to cover foreign currency risk
exposures for the time range of 3 up to 12 months.
