PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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13. PROPERTY, PLANT AND EQUIPMENT UNDER REVENUE-SHARING ARRANGEMENTS
continued In accordance with revenue-sharing arrangements agreements, ownership rights to the property, plant
and equipment under revenue-sharing arrangements are legally retained by the investors until the end of the revenue-sharing period.
The unearned income on revenue-sharing arrangements is as follows:
2005 2006
Gross amount 959,154
1,018,418 Accumulated amortization:
Beginning balance 833,365
582,155 Addition Note 35
75,656 92,310
Deduction 296,025
3,057 Ending balance
612,996 671,408
Net 346,158 347,010
14. ADVANCES AND OTHER NON-CURRENT ASSETS
Advances and other non-current assets consist of:
2005 2006
Advances for purchase of property, plant and equipment 1,118,139
616,060 Deferred landrights charges
86,884 80,834
Security deposits 68,092
36,823 Restricted cash
118,146 1,887
Others 37,626
21,722 Total
1,428,887 757,326
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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15. GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill and other intangible assets for the six months period ended September 30, 2005 and 2006 are as follows:
Other Goodwill
intangible Total
assets
Gross carrying amount as of September 30, 2005 106,348
7,151,111 7,257,459
Accumulated amortization: Balance as of December 31, 2004
76,221 1,769,813
1,846,034 Amortization expense for 9 months period in 2005
15,952 672,662
688,614 Balance as of September 30, 2005
92,173 2,442,475
2,534,648 Net book value
14,175 4,708,636
4,722,811 Weighted-average amortization period
5 years 7.97 years
Other Intangible
Goodwill Assets
Total
Gross carrying amount: Balance as of December 31, 2005
106,348 7,151,111
7,257,459 Addition - License for 3G Telkomsel
- 436,000
436,000 Balance as of September 30, 2006
106,348 7,587,111
7,693,459 Accumulated amortization:
Balance as of December 31, 2005 97,491
2,666,696 2,764,187
Amortization expense for 9 months period in 2006 8,857
701,730 710,587
Balance as of September 30, 2006 106,348
3,368,426 3,474,774
Net book value -
4,218,685 4,218,685
Weighted-average amortization period 5 years
8.09 years
Other intangible assets resulted from the acquisitions of Dayamitra, Pramindo, AWI and KSO IV, and represent the rights to operate the business in the KSO areas Note 5. Goodwill resulted from the
acquisition of GSD Note 1c. The estimated annual amortization expense relating to goodwill for the year ending December 31, 2006
is Rp8.857 million. The estimated annual amortization expense relating to other intangible assets for each of the next five years beginning from January 1, 2006 is Rp716,771 million per year.
On February 8, 2006, Telkomsel has obtained a 3-G mobile cellular operating license for 1940-1945 MHz and 2130-2135 MHz frequency bandwidth for a 10-year period, which is extendable subject to
evaluation. The upfront fee for the 3-G license amounted to Rp436,000 million was recognized as other intangible asset and amortized over the useful life of the license 10 years.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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16. ESCROW ACCOUNTS
