PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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47. JOINT OPERATION SCHEMES “KSO” continued
At the end of the KSO period, all rights, title and interests of BSI in existing installations and all work in progress, inventories, equipment, materials, plans and data relating to any approved additional new
installation projects then uncompleted or in respect of which the tests have not been successfully completed, shall be sold and transferred to the Company without requiring any further action by any
party, upon payment by the Company to the KSO investor of: i. the net present value, if any, of the KSO investors projected share in DKSOR from the additional
new installations forming part of the KSO system on the termination date over the balance of the applicable payback periods, and
ii. an amount to be agreed upon between the Company and the KSO investor as a fair compensation in respect of any uncompleted or untested additional new installations transferred.
48. REVENUE-SHARING ARRANGEMENTS
The Company has entered into separate agreements with several investors under Revenue-Sharing Arrangements RSA to develop fixed lines, public card-phone booths including their maintenance
and related supporting telecommunications facilities. As of December 31, 2005, the Company has 90 RSA with 63 partners. The RSA are located mainly
in Palembang, Pekanbaru, Jakarta, East Java and Kalimantan with concession periods ranging from 16 to 176 months.
Under the RSA, the investors finance the costs incurred in developing telecommunications facilities. Upon completion of the construction, the Company manages and operates the facilities and bears the
cost of repairs and maintenance during the revenue-sharing period. The investors legally retain the rights to the property, plant and equipment constructed by them during the revenue-sharing periods.
At the end of each revenue-sharing period, the investors transfer the ownership of the facilities to the Company at a nominal price.
Generally, the revenues earned from the customers in the form of line installation charges are allocated in full to the investors. The revenues from outgoing telephone pulses and monthly
subscription charges are shared between the investors and the Company based on certain agreed ratio. The net book value of property, plant and equipment under RSA which have been transferred to
property, plant and equipment amounted to Rp53,589 million and Rp55,441 million in 2004 and 2005, respectively Note 13.
The investors share of revenues amounted to Rp891,165 million and Rp513,528 million in 2004 and 2005, respectively.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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49. TELECOMMUNICATIONS SERVICES TARIFFS
Under Law No. 36 year 1999 and Government Regulation No. 52 year 2000, tariffs for the use of telecommunications network and telecommunication services are determined by providers based on
the tariffs category, structure and with respect to fixed line telecommunication services price cap formula set by the Government.
Fixed Line Telephone Tariffs Fixed line telephone tariffs are imposed for network access and usage. Access charges consist of a
one-time installation charge and a monthly subscription charge. Usage charges are measured in pulses and classified as either local or domestic long-distance. The tariffs depend on call distance, call
duration, the time of day, the day of the week and holidays. Tariffs for fixed line telephone are regulated under Minister of Communications Decree No. KM.12
year 2002 dated January 29, 2002 concerning the addendum of the decree of Minister of Tourism, Post and Telecommunication “MTPT” No. 79 year 1995, concerning the Method for Basic Tariff
Adjustment on Domestic Fixed Line Telecommunication Services. Furthermore, the Minister of Communications issued Letter No. PK 30413 PHB-2002 dated January 29, 2002 concerning
increase in tariffs for fixed line telecommunications services. According to the letter, tariffs for fixed line domestic calls would increase by 45.49 over three years. The average increase in 2002 was
15. This increase was effective on February 1, 2002. The implementation of the planned increase in the tariff in 2003, however, was postponed by the Minister of Communications through letter No.
PR.30411PHB-2003 dated January 16, 2003.
Based on the Announcement No. PM.2 year 2004 of the Minister of Communications dated March 30, 2004, the Company adjusted the tariffs effective April 1, 2004 as follows:
•
Local charges increased by an average of 28
•
DLD charges decreased by an average of 10
•
Monthly subscription charges increased by an average of 12 to 25, depending on customer segment.
