PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
106
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued b. Borrowings and other credit facilities
i As of June 30, 2016, the Company has bank guarantee facilities for tender bond,
performance bond, maintenance bond, deposit guarantee and advance payment bond for various projects of the Company, as follows:
Facility utilized Original
Total currency
Rupiah Lenders
facility Maturity
Currency in millions
equivalent
BRI 350
March 14, 2018 Rp
- 72
US 1
BNI 250
March 31, 2017 Rp
- 73
US 1
Bank Mandiri 300
December 23, 2016 Rp
- 76
US
Total 900
223
ii Telkomsel has US3 million bond and bank guarantee and standby letter of credit facilities with SCB, Jakarta. The facilities expire on July 31, 2016. Under these facilities, as of
June 30, 2016, Telkomsel has issued a bank guarantee of Rp20 billion equivalent to US1.5 million for a 3G performance bond Note 39c.i. The bank guarantee is valid until
March 24, 2016. As of the date of approval and authorization for the issuance of the consolidated financial statements, the bank guarantee is not extended.
Telkomsel has a Rp500 billion bank guarantee facility with BRI. The facility will expire on September 25, 2016. Under this facility, as of June 30, 2015, Telkomsel has issued a bank
guarantee of Rp443 billion equivalent to US33 million as payment commitment guarantee for annual right of usage fee valid until March 31, 2017 and Rp20 billion equivalent to
US1.5 million for a 3G performance guarantee that valid until May 31, 2016. As of the date of approval and authorization for the extension of the facility is still in process.
Telkomsel has a Rp150 billion bank guarantee facility with BCA. The facility will expire on April 15, 2017.
Telkomsel has also a Rp100 billion bank guarantee facility with BNI. The facility will expire on December 11, 2016. Telkomsel uses this facility to replace the time deposit required as
guaranty for the USO program amounting to Rp53 billion Note 35c.iv.
iii TII has a US15 million bank guarantee from Bank Mandiri. The facility will expire on December 18, 2016. The outstanding bank guarantee facility as of June 30, 2016 amounting
to US10 million.
c. Others
i 3G license 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: 1. Pay an annual BHP fee which is calculated based on a certain formula over the license
term 10 years as set forth in the Decision Letters. The BHP is payable upon receipt of the notification letter “Surat Pemberitahuan Pembayaran” from the DGPI. The BHP fee is
payable annually up to the expiry date of the license.
2. Provide roaming access for the existing other 3G operators. 3. Contribute to USO development.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
107
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: 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, 32. Telkomsel has paid through an escrow account amounting to Rp2,162 billion
for this restructuring business and presented as Other Current Financial Assets Note 4. As the date of approval and authorization of the consolidated financial statements, the
restructuring business is still in process.
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, 2014. 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.
