PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
43
6. TRADE RECEIVABLES
Trade receivables arise from services provided to both retail and non-retail customers, with details as follows:
a. By debtor i Related parties
2013 2012
State-owned enterprises 877
549 Indonusa
180 -
PT Indosat Tbk “Indosat” 48
55 CSM
45 51
Patrakom -
56 Others
241 62
Total 1,391
773 Provision for impairment of receivables
491 72
Net 900
701
ii Third parties
2013 2012
Individual and business subscribers 7,010
6,177 Overseas international carriers
497 320
Total 7,507
6,497 Provision for impairment of receivables
2,381 1,975
Net 5,126
4,522
Trade receivables from certain parties are presented net of the Company and subsidiaries’ liabilities to such parties due to the existence of a legal right of set-off in accordance with the
agreements with those parties.
b. By age i Related parties
2013 2012
Up to 6 months 836
442 7 to 12 months
223 248
More than 12 months 332
83 Total
1,391 773
Provision for impairment of receivables 491
72
Net 900
701
In 2013, Patrakom was fully consolidated Note 3.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
44
6. TRADE RECEIVABLES continued
b. By age continued ii Third parties
2013 2012
Up to 3 months 4,526
3,969 More than 3 months
2,981 2,528
Total 7,507
6,497 Provision for impairment of receivables
2,381 1,975
Net 5,126
4,522
iii Aging of total trade receivables
2013 2012
Provision for Provision for
impairment impairment
Gross of receivables
Gross of receivables
Not past due 3,618
10 3,174
140 Past due up to 3 months
1,525 401
1,250 157
Past due more than 3 to 6 months 703
321 455
193 Past due more than 6 months
3,052 2,140
2,391 1,557
Total 8,898
2,872 7,270
2,047
The Company and subsidiaries have made provision for impairment of trade receivables based on the collective assessment of historical impairment rates and individual assessment
of their customers’ credit history. The Company and subsidiaries do not apply a distinction between related party and third party receivables in assessing amounts past due. As of
December 31, 2013 and 2012, the carrying amount of trade receivables of the Company and subsidiaries considered past due but not impaired amounted to Rp2,418 billion and
Rp2,189 billion, respectively. Management has concluded that receivables past due but not impaired, along with trade receivables that are neither past due nor impaired, are due from
customers with good credit history and are expected to be recoverable.
c. By currency
i Related parties
2013 2012
Rupiah 1,361
686 U.S. dollar
30 87
Total 1,391
773 Provision for impairment of receivables
491 72
Net 900
701
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
45
6. TRADE RECEIVABLES continued
c. By currency continued
ii Third parties
2013 2012
Rupiah 6,699
5,770 U.S. dollar
806 722
Euro 1
3 Hong Kong dollar
1 2
Total 7,507
6,497 Provision for impairment of receivables
2,381 1,975
Net 5,126
4,522
d. Movements in the provision for impairment of receivables
2013 2012
Beginning balance 2,047
1,732 Provision recognized during the year Note 29
1,589 848
Receivables written-off 622
533 Acquisition
1 -
Disposal Note 3 158
- Reclassification
15 -
Ending balance 2,872
2,047
The receivables written off are related-party and third-party trade receivables. Management believes that the provision for impairment of trade receivables is adequate to cover
losses on uncollectible trade receivables. Certain trade receivables of the subsidiaries amounting to Rp1,700 billion have been pledged as
collateral under lending agreements Notes 17 and 21. Refer to Note 37 for details of related party transactions.
7. INVENTORIES
2013 2012
Components 272
183 SIM cards, RUIM cards, set top box, and
blank prepaid vouchers 102
134 Others
157 410
Total 531
727 Provision for obsolescence
Components 21
51 SIM cards, RUIM cards, set top box, and
blank prepaid vouchers 1
1 Modules
- 96
Total 22
148
Net 509
579
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
46
7. INVENTORIES continued
Movements in the provision for obsolescence are as follows:
2013 2012
Beginning balance 148
106 Divestment
1 -
Provision reversal recognized during the year 29
67 Reclassification
96 -
Inventories written-off -
25
Ending balance 22
148
The inventories
recognized as
expense and
included in
operations, maintenance,
and telecommunication service expenses Note 28 for the years ended December 31, 2013 and 2012
amounted to Rp752 billion and Rp633 billion, respectively. Management believes that the provision is adequate to cover losses from declines in inventory value
due to obsolescence. Certain inventories of the Company’s subsidiaries amounting to Rp53 billion have been pledged as
collateral under lending agreements Notes 17 and 21. As of December 31, 2013 and 2012, modules and components held by the Company and subsidiaries
have been insured against fire, theft, and other specific risks with book value amounting to Rp280 billion and Rp272 billion, respectively. Modules are recorded as part of property and
equipment. Total sum insured as of December 31, 2013 and 2012 amounted to Rp261 billion and Rp275 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of certain inventories which happens to the Company and subsidiaries.
8. ADVANCES AND PREPAID EXPENSES
2013 2012
Frequency license Notes 41c.i and 41c.ii 2,330
2,563 Prepaid rental
744 666
Advances 297
120 Salaries
209 165
Deferred expense 124
45 Insurance
84 18
Others each below Rp50 billion 149
144
Total 3,937
3,721
Refer to Note 37 for details of related party transactions.