PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
111
44. FINANCIAL RISK MANAGEMENT continued
1. Financial risk management continued b.
Market price risk The Company and subsidiaries are exposed to changes in debt and equity market prices
related to available-for-sale investments carried at fair value. Gains and losses arising from changes in the fair value of available-for-sale investments are recognized in equity.
The performance of the Company and subsidiaries available-for-sale investments are monitored periodically, together with a regular assesment of their relevance to the Company
and subsidiaries long-term strategic plans.
As of June 30, 2013, management considered the price risk for its available-for-sale investments to be immaterial in terms of the possible impact on profit or loss and total equity
from a reasonably possible change in fair value.
c. Interest rate risk
Interest rate fluctuation is monitored to minimize any negative impact to financial position. Borrowings at variable interest rates expose the Company and subsidiaries to interest rate
risk Notes 16, 17, 18, 19 and 20. To measure market risk pertaining to fluctuations in interest rates, the Company and subsidiaries primarily use interest margin and maturity
profile of the financial assets and liabilities based on changing schedule of the interest rate.
At reporting date, the interest rate profile of the Company and subsidiaries interest-bearing borrowings was as follows:
Juni 30, December 31,
2013 2012
Fixed rate borrowings 12,070
7,025 Variable rate borrowings
7,797 12,250
Sensitivity analysis for variable rate borrowings At June 30, 2013, a change of 25 basis points in interest rates of variable rate borrowings
would have increased decreased equity and profit or loss by Rp30 billion, respectively. This analysis assumes that all other variables, in particular foreign currency rates, remain
constant.
d. Credit risk The following table presents the maximum exposure to credit risk of the Company and
subsidiaries financial assets:
Juni 30, December 31,
2013 2012
Cash and cash equivalents 11,551
13,118 Other current financial assets
696 4,338
Trade and other receivables, net 7,139
5,409 Long-term investments
21 21
Advances and other non-current assets 455
614
Total 19,862
23,500
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
112
44. FINANCIAL RISK MANAGEMENT continued
1. Financial risk management continued d. Credit risk continued
The Company and subsidiaries are exposed to credit risk primarily from trade receivables and other receivables. The credit risk is managed by continuous monitoring of outstanding
balances and collection of trade and other receivables.
Trade and other receivables do not include any major concentration of credit risk by customer. Each of the top three customers account for less than 1 of the trade receivables
as at June 30, 2013.
Management is confident in its ability to continue to control and sustain minimal exposure to credit risk given that the Company and subsidiaries have provided sufficient provision for
impairment of receivables to cover incurred loss arising from uncollectible receivables based on existing historical data on credit losses.
e. Liquidity risk Liquidity risk arises in situations where the Company and subsidiaries have difficulties in
fulfilling financial liabilities when they become due. Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents in
order to meet the Company and subsidiaries financial obligations. The Company and subsidiaries continuously perform an analysis to monitor financial position ratios, among
other things, liquidity ratios, debt equity ratios against debt covenant requirements.
The following is the maturity profile of the Company and subsidiaries financial liabilities:
Carrying Contractual
2017 and amount
cash flows 2013
2014 2015
2016 thereafter
June 30, 2013 Trade and other payables
8,472 8,472
8,472 -
- -
- Accrued expenses
5,622 5,622
5,622 -
- -
- Loans and other borrowings
Bank loans 11,058
12,128 4,071
2,913 2,600
1,091 1,453
Obligations under finance leases
3,306 5,474
1,078 496
827 568
2,505 Two-step loans
1,799 2,212
270 133
260 253
1,296 Bonds and notes
3,447 5,064
644 225
1,282 203
2,710
Total 33,704
38,972 20,157
3,767 4,969
2,115 7,964
Carrying Contractual
2017 and amount
cash flows 2013
2014 2015
2016 thereafter
December 31, 2012 Trade and other payables
7,456 7,456
7,456 -
- -
- Accrued expenses
6,163 6,163
6,163 -
- -
- Loans and other borrowings
Bank loans 11,295
12,585 5,118
3,869 2,518
602 478
Obligations under finance leases
2,324 3,172
652 548
398 354
1,220 Two-step loans
1,987 2,462
283 277
270 263
1,369 Bonds and notes
3,669 5,462
757 505
1,287 203
2,710
Total 32,894
37,300 20,429
5,199 4,473
1,422 5,777
The difference of carrying amount and contractual cash flows is interest value.