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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5. ACQUISITION OF KSO INVESTORS AND KSO IV continued
b. Pramindo continued On January 28, 2004, the Company obtained a loan to finance the payment of the outstanding
promissory notes issued for the acquisition of Pramindo Note 20b. On March 15, 2004, the Company repaid the remaining balance of these promissory notes and legal title to all of
Pramindo’s shares has been completely transferred to the Company.
c. AWI
Effective on July 31, 2003 the “closing date”, the Company acquired 100 of the outstanding common stock of AWI, the investor in KSO III, for approximately Rp1,141,752 million plus the
assumption of AWI’s debts of Rp2,577,926 million. The purchase consideration included non- interest bearing promissory notes with a face value of US109.1 million Rp927,272 million, of
which the present value at the discount rate of 5.16 at the closing date was estimated to be US92.7 million Rp788,322 million. The promissory notes are to be paid in 10 equal semi-
annual installments beginning July 31, 2004.
The acquisition of AWI has been accounted for using the purchase method of accounting. There was no goodwill arising from this acquisition. The following table summarizes the final purchase
price allocation of the acquired assets and assumed liabilities based on estimates of their respective fair values at the closing date:
Rp
Distributable KSO revenue receivable 540,267
Property, plant and equipment 1,556,269
Intangible assets 1,982,564
Other assets 34,372
Deferred tax liabilities 393,794
Fair value of net assets acquired 3,719,678
Borrowings assumed 2,577,926
Amount of cash and promissory notes given up 1,141,752
Intangible assets identified from this acquisition represent right to operate the business in the KSO area and the amount is being amortized over the then remaining term of the KSO agreement of 7.4
years Note 15.
The Company’s consolidated results of operations include the operating results of AWI since July 31, 2003, the date of acquisition.
The outstanding promissory notes issued for the acquisition of AWI are presented as “Liabilities of business acquisitions” in the consolidated balance sheets as of December 31, 2004 and 2005 Note
25. As of December 31, 2004 and 2005, the outstanding promissory notes, before unamortized discount, amounted to US98.2 million Rp913,091 million and US76.4 million Rp751,036
million, 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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5. ACQUISITION OF KSO INVESTORS AND KSO IV continued c. AWI continued
