PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
105
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
ii Radio Frequency Usage continued Conditional
Business Transfer Agreement “CBTA” continued Based on MoCI Decision letter No. 807KOMINFOOJ-SOPI.4SP.03.03102016 dated
October 13, 2016 stated that frequency migration process of frequency spectrum of 800 MHz has finished and Telkomsel has been able to use frequencies 880 - 887.5 MHz paired with
925 - 932.5 MHz nationwide.
Regarding the case, the Company and Telkomsel agreed that all conditions as mentioned in CBTA have been met on September 30, 2016 and on October 21, 2016, the CBTA in 2016 has
been completed.
iii Future minimum lease payments under operating lease The Group entered into non-cancelable lease agreements with both third and related parties.
The lease agreements cover leased lines, telecommunication equipment and land and building with terms ranging from 1 to 10 years and with expiry dates between 2017 and 2026. Periods
may be extended based on the agreement by both parties.
Future minimum lease payments and receivables under the operating lease agreements as of December 31, 2016 are as follows:
Total Less than 1
year 1-5 years
More than 5 years
As lessee 29,617
3,814 14,479
11,324 As lessor
2,443 774
1,400 269
In connection with the restructuring of its fixed wireless business Note 34c.ii, the Company is undertaking a negotiation to early terminate its operating lease agreements, and has recorded
provisions for early termination amounting to Rp202 billion and Rp666 billion which are presented as “Other Expense” in 2015 and 2016, respectively. As of December 31, 2016,
outstanding payable balance of operating lease agreements due to early termination amounting to Rp300 billion.
The future minimum lease payments above include those related to lease agreements with telecommunication tower providers which were used for the fixed wireless business unit.
iv USO The MoCI issued Regulation No. 15PERM.KOMINFO92005 dated September 30, 2005,
which sets forth the basic policies underlying the USO program and requires telecommunications operators in Indonesia to contribute 0.75 of their gross revenues
with due consideration for bad debts and interconnection charges for USO development. Based o
n the Government’s Decree No. 7 year 2009 dated January 16, 2009 and Decree No. 05PERM.KOMINFO22007 dated February 28, 2007, the contribution was changed to
1.25 of gross revenues with due consideration for bad debts andor interconnection charges andor connection charges. Subsequently, in December 2012, Decree
No. 05PERM.KOMINFO22007 was replaced by Decree No. 45 year 2012 of the MoCi which was effective from January 22, 2013. The latest Decree stipulates, among other things, the
exclusion of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged, and changed the payment period which was previously on a
quarterly basis to become quarterly or semi-annually.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
106
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
iv USO continued Based on MoCI Decree No. 32PERM.KOMINFO102008 dated October 10, 2008 as
amended by Decree No. 03PERM.KOMINFO22010 dated February 1, 2010 which replaced MoCI Decree No. 11PERM.KOMINFO042007 dated April 13, 2007 and MoCI Decree
No. 38PERM.KOMINFO92007 dated September 20, 2007, it is stipulated that, among others, in providing telecommunication access and services in rural areas USO Program, the provider
is determined through a selection process by Balai Telekomunikasi dan Informatika Pedesaan
“BTIP” which was established based on MoCI Decree No. 35PERM.KOMINFO112006 dated November 30, 2006. Subsequently, based on Decree No. 18PERM.KOMINFO112010
dated November 19, 2010 of MoCI, BTIP was changed to Balai Penyedia dan Pengelola Pembiayaan Telekomunikasi dan Informatika
“BPPPTI”. a. The Company
On March 12, 2010, the Company was selected in a tender by the Government through BTIP to provide internet access service centers for USO sub-districts for a total amount of
Rp322 billion, covering Nanggroe Aceh Darussalam, North Sumatera, North Sulawesi, Gorontalo, Central Sulawesi, West Sulawesi, South Sulawesi and South East Sulawesi.
On December 23, 2010, the Company was selected in a tender by the Government through BTIP to provide mobile internet access service centers for USO sub-districts for a total
amount of Rp528 billion, covering Jambi, Riau, Kepulauan Riau, North Sulawesi, Central Sulawesi, Gorontalo, West Sulawesi, South East Sulawesi, Central Kalimantan, South
Sulawesi, Papua and West Irian Jaya.
In 2015, the program was ceased. On September 8, 2015, the Company filed an arbitration claim to the Indonesia National Board of Arbitration “BANI” for the settlement of the
outstanding receivables of USO-PLIK and USO-MPLIK. On 22 September 2016, BANI decided that BPPPTI should pay the underpayment to the Company for USO-PLIK and
USO-MPLIK project amounting to Rp127 billion and Rp342 billion, respectively.
As of the date of the issuance of these consolidated financial statements, the Company has received payment from BPPPTI amounting to Rp278 billion.
b. Telkomsel On January 16 and 23, 2009, Telkomsel was selected in a tender by the Government
through BTIP to provide and operate telecommunication access and services in rural areas USO Program for a total amount of Rp1.66 trillion, covering all Indonesian territories
except Sulawesi, Maluku and Papua. Accordingly, Telkomsel obtained local fixed-line licenses and the right to use radio frequency in the 2,390 MHz - 2,400 MHz bandwith.
Subsequently, in 2010 and 2011, the agreements with BTIP were amended, which amendments cover, among other things, changing the price to Rp1.76 trillion and changing
the term of payment from quarterly to monthly or quarterly.
In January 2010, the MoCI granted Telkomsel operating licenses to provide local fixed-line services under the USO program.
On December 27, 2011, Telkomsel on behalf of Konsorsium Telkomsel, a consortium which was established with Dayamitra on December 9, 2011 was selected by BPPPTI as
a provider of the USO Program in the border areas for all packages package 1 - 13 with a total price of Rp830 billion. On such date, Telkomsel was also selected by BPPPTI as a
provider of the USO Program U
pgrading of “Desa Pinter” or “Desa Punya Internet” for 1, 2 and 3 packages with a total price of Rp261 billion.
