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.
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
40
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 31 for details of related party transactions.
8. LONG-TERM INVESTMENTS
2016 Percentage of
ownership Beginning
balance Additions
Deductions Share of net
profit loss of associated
company 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
Telin Malaysia 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 and other 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