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
90
44. RELATED PARTY TRANSACTIONS continued c. Indosat continued
The principal matters covered by the agreement are as follows: i. The Company provides a local network for customers to make or receive international calls.
Indosat provides the international network for the customers, except for certain border towns, as determined by the Director General of Post and Telecommunications of the Republic of
Indonesia. The international telecommunications services include telephone, telex, telegram, Package Switched Data Network PSDN, television, teleprinter, Alternate
VoiceData Telecommunications AVD, hotline and teleconferencing.
ii. The Company and Indosat are responsible for their respective telecommunications facilities. iii. Customer billing and collection, except for leased lines and public phones located at the
international gateways, are handled by the Company. iv. The Company receives compensation for the services provided in the first item above, based
on the interconnection tariff determined by the MoC. The Company has also entered into an interconnection agreement between the Company’s fixed
line network Public Switched Telephone Network or “PSTN” and Indosat’s cellular network in connection with implementation of Indosat Multimedia Mobile services and the settlement of the
related interconnection rights and obligations.
The Company also has an agreement with Indosat for the interconnection of Indosats GSM mobile cellular telecommunications network with the Companys PSTN, enabling each party’s
customers to make domestic calls between Indosat’s GSM mobile network and Telkom’s fixed line network and allowing Indosat’s mobile customers to access Telkom’s IDD service by dialing
“007”.
The Company has been handling customer billings and collections for Indosat. Indosat is gradually taking over the activities and performing its own direct billing and collection. The
Company receives compensation from Indosat computed at 1 of the collections made by the Company beginning January 1, 1995, plus the billing process expenses which are fixed at a
certain amount per record.
On December 28, 2006, the Company and Indosat signed amendments to the interconnection agreements for the fixed line networks local, SLJJ and international and mobile network for the
implementation of the cost-based tariff obligations under the MoCI Regulations No. 82006 Note 48. These amendments took effect on January 1, 2007.
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
91
44. RELATED PARTY TRANSACTIONS continued c. Indosat continued
Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to its GSM mobile cellular customers. The principal matters covered
by the agreement are as follows:
i. Telkomsel’s GSM mobile cellular telecommunications network is interconnected with PT Indosat’s international gateway exchanges to facilitate outgoing and incoming
international calls. ii. Telkomsel’s and Indosat’s GSM mobile cellular telecommunications networks are
interconnected to allow cross-network communications among their subscribers. iii. In exchange for these interconnections, Indosat is entitled to a certain amount as
compensation. iv. Interconnection equipment installed by one of the parties in another party’s premises remain
the property of the party installing such equipment. Expenses incurred in connection with the provision of equipment, installation and maintenance are borne by Telkomsel.
The Company and its subsidiaries were charged net interconnection charges from Indosat of Rp.278,231 million and Rp.13,489 million for the nine months period ended September 30, 2007
and 2008, respectively, representing 0.61 and 0.03 of the total operating revenues in each period.
Telkomsel also has an agreement with Indosat on the usage of Indosats telecommunications facilities. The agreement, which was made in 1997 and is valid for eleven years, is subject to
change based on annual review and mutual agreement by both parties. The charges for the usage of the facilities amounted to Rp.9,077 million and Rp.18,951 million for the nine months
period ended September 30, 2007 and 2008, respectively, representing 0.04 and 0.07 of the total operating expenses in each period.
Other agreements between Telkomsel and Indosat are as follows: i. Agreement on Construction and Maintenance for Jakarta-Surabaya Cable System
J-S Cable System On October 10, 1996, Telkomsel, Lintasarta, Satelindo and Indosat the “Parties” entered
into an agreement on the construction and maintenance of the J-S Cable System. The Parties have formed a management committee which consists of a chairman and one
representative from each of the Parties to direct the construction and operation of the cable system. The construction of the cable system was completed in 1998. In accordance with the
agreement, Telkomsel shared 19.325 of the total construction costs. Operating and maintenance costs are shared based on agreed formula.
Telkomsel’s share in operating and maintenance costs amounted to Rp.282 million and Rp.353 million for the nine months period ended September 30, 2007 and 2008, respectively.
