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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
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35. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others
continued
i 3G license
continued With reference to the Decision Letters No. 07PERM.KOMINFO22006,
No. 268KEPM.KOMINFO92009 and No. 191 year 2013 of the MoCI Note 2i, Telkomsel is required, among other things, to: continued
4. Construct a 3G network which covers at least 14 provinces by the sixth year of holding the 3G license.
5. Issue a performance bond every year amounting to Rp20 billion or 5 of the annual fee to be paid for the subsequent year, whichever is higher.
ii Radio Frequency Usage Based on the Decree No. 76 dated December 15, 2010 of the Government of the Republic of
Indonesia, which amended Decree No. 7 dated January 16, 2009, the annual frequency usage fees for bandwidths of 800 Megahertz “MHz”, 900 MHz and 1800 MHz are
determined using a formula set forth in the Decree. The Decree is applicable for 5 years unless further amended.
As an implementation of the Decree above, the Company and Telkomsel paid the first, second, third and forth year annual frequency usage fees in 2010, 2011, 2012 and 2013,
respectively. In order to maximize its business opportunities from the group synergy, the Company
restructured its fixed wireless business unit by terminating the respective fixed wireless telecommunication network services and transferring the fixed wireless business and
subscribers to Telkomsel. On June 27, 2014, the Company signed a Conditional Business Transfer Agreement with Telkomsel to transfer such business and subscribers to Telkomsel
Notes 4,9b, 31. Telkomsel has paid through an escrow account amounting to Rp2,162 billion for this restructuring business and presented as Other Current Financial Assets Note 5. As
the date of approval and authorization of the consolidated financial statements, the restructuring business is still in process.
The Company recorded a restructuring provision of Rp208 billion as of December 31, 2014. The provision relates to the benefits provided in “Upgrade Telkomflexi” program that was
introduced to encourage Telkom Flexi subscribers to migrate to Telkomsel services. The program was announced to public on October 3, 2014. As the date of approval and
authorization of the consolidated financial statements, the migration of customers had been accomplished and all the services rendered has been ceased.
Based on Decision Letter No. 934 dated September 26, 2014, the MoCI approved the transfer of the Company’s frequency usage license on radio frequency spectrum of 800 MHz,
specifically on spectrum of 880-887.5 MHz paired with 925-932.5 MHz, to Telkomsel. Telkomsel can use the radio frequency spectrum since the decision letter was issued.
During the transition period, the Company is still able to use the radio frequency spectrum of 880-887.5 MHz paired with 925-932.5 MHz until December 14, 2015.
Based on Decision Letters No. 940 dated September 26, 2014, MoCI determined that the fifth year Y5, 2014, annual frequency usage fee of Telkomsel was Rp2,198 billion. The fee
includes annual frequency usage fee transferred from Company to Telkomsel and was paid in December 2014.
Based on Decision letter No. 983 issued in 2015, the MoCI determined that the sixth year Y6 2015, annual frequency usage fee of Telkomsel was Rp 2,398 billion. The fee was paid in
December 2015.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
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35. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others
