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 Table of Content
7. ADVANCES AND PREPAID EXPENSES 2016
2015
Frequency license Notes 34c.i and 34c.ii 3,056
2,935 Prepaid rental
1,234 1,055
Advances 394
729 Salaries
229 347
Advance to employee 32
28 Others
301 745
Total 5,246
5,839
Refer to Note 31for details of related party transactions.
8. LONG-TERM INVESTMENTS
2016 Percentage
of ownership Beginning
balance Additions
Deductions Share ofnet profit
loss of associatedcompany
Dividend Share of other
comprehensive income of
associated company
Ending balance
Long-term investments in associated companies:
Tiphone
a
24.43 1,404
- 108
23 1
1,488 Indonusa
b
20.00 221
- -
- -
221 Teltranet
c
51.00 71
- 33
- -
38 PT Melon Indonesia
“Melon”
d
51.00 50
67 17
- -
- PT Integrasi Logistik Cipta
Solusi “ILCS”
e
49.00 40
- 2
- -
42 Telin Malaysia
f
49.00 6
- 6
- -
CSM
g
25.00 -
- -
- -
- Sub-total
1,792 67
88 23
1 1,789
Other long-term investments 15
43 -
- -
58
Total Long-term investments 1,807
24 88
23 1
1,847
Summarized financial information of the Group’s investments accounted under the equity method for 2016:
Tiphone Indonusa
Teltranet ILCS
TelinMalaysia CSM
Statements of financial position Current assets
7,709 170
66 131
9 161
Non-current assets 743
444 88
29 10
761 Current liabilities
1,248 532
78 73
35 594
Non-current liabilities 3,762
405 2
1 6
1,206
Equity deficit 3,442
323 74
86 22
878
Statements of profit or loss andother comprehensive income
Revenues 27,310
605 66
116 8
131 Operating expenses
26,445 583
149 112
43 221
Other income expenses including finance costs - net
231 17
3 -
88 Profit loss before tax
634 5
86 4
35 178
Income tax expense 166
33 21
- -
Profit loss for the year 468
28 65
4 35
178
Other comprehensive income loss
5 7
- -
Total comprehensive income for the year
463 21
65 4
35 178
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 Table of Content
8. LONG-TERM INVESTMENTS continued
2015 Percentage
ofownership Beginningbalance
Additions Deductions
Share of net loss profit of
associatedcompany Dividend Share of other
comprehensiveincome of associatedcompany Endingbalance
Long-term investments in associated companies:
Tiphone
a
24.65 1,392
- 32
18 2
1,404 Indonusa
b
20.00 221
- -
- -
221 Teltranet
c
51.00 52
43 24
- -
71 Melon
d
51.00 43
- 7
- -
50 ILCS
e
49.00 38
- 2
- -
40 Telin Malaysia
f
49.00 6
19 19
- 6
CSM
g
25.00 -
- -
- -
- Sub-total
1,752 62
2 18
2 1,792
Other long-term investments
15 -
- -
- 15
Total long-term investments
1,767 62
2 18
2 1,807
Summarized financial information of the Group’s investments accounted under the equity method for 2015:
Tiphone Indonusa
Teltranet Melon
ILCS Telin Malaysia
CSM
Statements of financial position
Current assets 6,539
501 117
131 105
18 185
Non-current assets 1,261
333 58
27 32
10 1,221
Current liabilities 1,657
535 35
57 54
17 731
Non-current liabilities
3,073 568
1 2
1 -
1,535
Equity deficit 3,070
269
139 99
82 11
860
Statements of profit or loss and other
comprehensive income Revenues
22,060 599
201 111
6 164
Operating expenses 21,295
559 72
184 108
40 364
Other income expensesincludin
g finance costs - net
265 82
9 2
3 74
Profit loss before tax
500 42
63 19
3 37
274 Income tax expense
130 -
16 5
- -
Profit loss for the year
370
42
47 14
3 37
274
Other comprehensive income loss
7 -
- -
-
Total comprehensive income for the year
363
42
47 14
3 37
274
a
Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such asfor celullar phone including spare parts, accessories, pulse reload vouchers,
repair service and content provider through its subsidiaries.On September 18, 2014, the Company through PINS acquired 25 ownership in Tiphone for Rp1,395 billion.
As of December 31, 2016 and 2015, the fair value of investment amounting to Rp1,500 billion and Rp1,351 billion, respectively. The fair value was calculated by multiplying number of shares by the published price quotation as of December
31, 2016 and 2015 amounting to Rp855 and Rp770 per share, respectively. Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of December 31, 2016
and 2015is as follows:
2016 2015
Assets 8.452
7,800 Liabilities
5.010 4,730
Net assets 3,442
3,070 Group’s proportionate share of net assets 24.43 in 2016 and 24.65 in 2015
841 757
Goodwill 647
647 Carrying amount of long-term investment
1,488 1,404
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 Table of Content
8. LONG-TERM INVESTMENTS continued
