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
116
49. COMMITMENTS continued d. Others continued
ii 3G license continued 2. Provide roaming access for the existing 3G operators.
3. Contribute to USO development. 4. Construct a 3G network which covers at least the following provinces:
Minimum number Year
of provinces
1 2
2 5
3 8
4 10
5 12
6 14
5. Issue a performance bond each year amounting to Rp.20,000 million or 5 of the annual fee to be paid for the subsequent year, whichever is higher. This performance bond shall
be redeemed by the Government if Telkomsel is not able to meet the requirements set out in the above mentioned Decision Letter or upon cancellationtermination of the
license, or if Telkomsel decides to return the license voluntarily.
iii Asia-America Gateway Consortium “AAG” On April 27, 2007, the Company became a member of AAG consortium, an undersea cable
consortium with 19 companies, by signing a CMA and an AAG Cable Network Supply Contract and paid US40 million. Through the AAG Consortium, the Company will acquire
40 Gbps international bandwith at the end of 2008 in the AAG configuration that will be laid from Malaysia to the United States. As of September 30, 2008, the Company has paid
US30.47 million equivalent to Rp.282,282 million and recorded as advances for the purchase of property, plant and equipment Note 13.
iv Palapa Ring Consortium On November 10, 2007, the Company entered into a CMA with five other companies for
Palapa Ring Consortium. This consortium was formed to build optical fiber network in 32 cities in Eastern Indonesia with total investment of Rp.2,070,336 million. The Company
will obtain 4 lambda bandwidth of total capacity of 8.44 lambdas from this consortium Note 15.
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
117
50. CONTINGENCIES
a. In the ordinary course of business, the Company and its subsidiaries have been named as defendant in various legal actions in relation with land disputes, other disputes involving
telecommunication billings. Based on managements estimate of the probable outcomes of these matters, the Company and its subsidiaries have accrued Rp.34,058 million as of
September 30, 2008.
b. In December 2005, the West Java Police Department initiated investigations related to an alleged violation of Eradication of Criminal Act of Corruption Law, in particular the provision of
interconnection services to Napsindo, the Company’s subsidiary, and Globalcom, a Malaysian company, at an incorrect tariff for the Company’s network for the provision of illegal VoIP
services, and misuse of authority in procuring telecommunication equipment. It is also understood that one of the investigations related to the Company’s guarantee of a bank loan obtained by
Napsindo. During the investigation, former Directors and employees of the Company were held in custody by the West Java Police Department for further investigation. On May 10, 2006, such
individuals were released from police custody after the expiration of the maximum period of 120 days allowed for police custody of suspect for investigation purposes. As of September 30, 2007
and 2008, the police have not found sufficient evidence to properly transfer the case to the High Attorney Office for indictment.
c. A former Director of Human Resources and an employee of the Company were indicted under the Eradication of Criminal Act of Corruption Law in Bandung District Court relating to allegations
of misuse of authority in procuring consultancy services resulting to a loss of Rp.789 million. On May 2, 2007, the Bandung District Court found the defendants guilty and sentenced each
defendant to a one-year prison term and gave Rp.50 million penalty. The defendants have filed and appeal to the West Java High Court, objecting to the District Court ruling. On
October 3, 2007, West Java High Court found the defendants not guilty. The Attorney has filed an appeal to Indonesian Supreme Court objecting to the High Court’s ruling. As of the issuance date
of the consolidated financial statements, no decision has been reach on the appeal.
d. On January 2, 2006, the Office of the Attorney General launched an investigation into allegations of misuse of telecommunications facilities in connection with the provision of VoIP services,
whereby one of Company’s former employees and four of the Company’s employees in KSO VII were named suspects. As a result of the investigations, one of Company’s former employees and
two of the Company’s employees were indicted in the Makassar District Court, and two other employees were indicted in the Denpasar District Court for their alleged corruption in KSO VII. On
January 29, 2008, the Makassar District Court found the defendant not guilty. The Attorney has filed an appeal to Indonesian Supreme Court objecting the District Court ruling. On
March 3, 2008, Denpasar District Court fount the defendants guilty and sentenced each defendant to a one-year six-month prison term and a one year prison term and gave Rp.50 million
penalty. The defendants have filed an appeal to the Bali High Court objecting to the District Court ruling. As of the issuance date of the consolidated financial statements, no decision has been
reach on the appeal.
