PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
104
43. FINANCIAL RISK MANAGEMENT continued
1. Financial risk management continued a. Foreign exchange risk continued
Increasing risks of foreign currency exchange rates on the obligations of the Company and its subsidiaries are expected to be offset by time deposits and receivables in foreign currencies
that are equal to at least 25 of the outstanding liabilities. The following represents the Company and its subsidiaries’ financial assets and financial
liabilities exposure to foreign currency risk:
June 30, 2012 Dolar A.S.
Yen Jepang in billion
in billion
Financial assets 0.30
0.00 Financial liabilities
0.68 9.67
Net exposure 0.38
9.67
Sensitivity analysis A strengthening of the U.S. Dollars and Japanese Yen, as indicated below, against the
Rupiah at June 30, 2012 would have decreased equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the
Company and its subsidiaries considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant.
Equityprofit loss June 30, 2012
U.S. Dollars 1 strengthening 36
Japanese Yen 5 strengthening 57
A weakening of the U.S. Dollars and Japanese Yen against the Rupiah at June 30, 2012 would have had the equal but opposite effect on the above currencies to the
amounts shown above, on the basis that all other variables remain constant.
b.
Market price risk The Company and its subsidiaries are exposed to changes in debt and equity market prices
related to available-for-sale investments that carried at fair value. Gain and losses arising from changes in the fair value of available-for-sale investments are recognized in equity.
The performance of the Company and its subsidiaries’ available-for-sale investments are monitored periodically, together with a regular assesment of their relevance to the Company
and its subsidiaries’ long term strategic plans. As at June 30, 2012 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.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
105
43. FINANCIAL RISK MANAGEMENT continued
1. Financial risk management continued 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 its subsidiaries to interest rate
risk Notes 15, 16, 17, 18 and 19. To measure market risk fluctuations in interest rates, the Company and its 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 its subsidiaries’ interest- bearing borrowings was:
June 30, 2012
Fixed rate borrowings 5,437
Variable rate borrowings 12,837
Sensitivity analysis for variable rate borrowings At June 30, 2012, a change of 25 basis points
in interest rates of variable rate borrowings would have increased decreased equity and profit or loss by the amounts Rp.31 billion,
respectively. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
d. Credit risk The following represents the maximum exposure to credit risk of the Company and its
subsidiaries financial assets:
June 30, 2012
Cash and cash equivalent 8,582
Available-for-sale financial assets 349
Trade and other receivables, net 5,814
Other current assets 5
Long-term investments 21
Advances and other non-current assets 260
Total 15,031
The Company and its subsidiaries are exposed to credit risk primarily from trade receivables and other receivables. The credit risk is managed by continuous monitoring 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, 2012.
Management is confident in its ability to continue to control and sustain minimal exposure of credit risk given that the Company and its subsidiaries have provided sufficient provision for
impairment of receivables to cover incurred loss arising from uncollectible receivables based on existing historical loss.
