PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
102
34. 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 each 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 above Decree, the Company and Telkomsel paid the first to fifth
year annual frequency usage fees for 2010 to 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.
On July 6, 2015, Telkomsel received Decision Letter No. 644 Year 2015 dated June 30, 2015, of the MoCI, which replaced Decision Letter No. 42 Year 2014 dated January 29, 2014,
whereby the MoCI granted Telkomsel the rights to provide: i Mobile telecommunication services with radio frequency bandwidth in the 800 MHz,
900 MHz and 1800 MHz bands; ii Mobile telecommunication services IMT-2000 with radio frequency bandwidth in the
2.1 GHz bands 3G; and iii Basic telecommunication services.
Conditional Business Transfer Agreement “CBTA” In order to maximize business opportunities within the group synergy, the Company
restructured its fixed wireless business unit by transferring its fixed wireless business and subscribers to Telkomsel. On June 27, 2014, the Company signed a CBTA with Telkomsel to
transfer such business and subscribers to Telkomsel Notes 4, 9b, 31.
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 date 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 at the latest until December 14, 2015. Based on MoCI Decision letter No. 807KOMINFOOJ-SOPI.4SP.03.03102016 dated
October 13, 2016, the migration process of frequency spectrum of 800 MHz has been completed and Telkomsel is able to use the frequency spectrum nationwide. Accordingly, the
Company and Telkomsel agreed that the CBTA has been completed on October 21, 2016.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
103
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
