PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
104
44. RELATED PARTY TRANSACTIONS continued c. Indosat continued
The Company has been handling customer billings and collections for Indosat. Indosat is gradually taking over the activities and performing its own direct billing and collection. The
Company receives compensation from Indosat computed at 1 of the collections made by the Company beginning January 1, 1995, plus the billing process expenses which are fixed at a
certain amount per record. On December 11, 2008, the Company and Indosat agreed to implement IDD service charge tariff, the tariff already taken into account the compensation of its
billing and collection. The agreement is valid and effective starting on January to December 2011, and can be applied until a new Minutes of Agreement available.
On December 28, 2006, the Company and Indosat signed amendments to the interconnection agreements for the fixed line networks local, SLJJ and international and mobile network for the
implementation of the cost-based tariff obligations under the MoCI Regulations No. 82006 Note 47. These amendments took effect on January 1, 2007.
Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to its GSM mobile cellular customers. The principal matters covered
by the agreement are as follows:
i. Telkomsel’s GSM mobile cellular telecommunications network is interconnected with PT Indosat’s international gateway exchanges to facilitate outgoing and incoming
international calls. ii. Telkomsel’s and Indosat’s GSM mobile cellular telecommunications networks are
interconnected to allow cross-network communications among their subscribers. iii. In exchange for these interconnections, Indosat is entitled to a certain amount as
compensation. iv. Interconnection equipment installed by one of the parties in another party’s premises remain
the property of the party installing such equipment. Expenses incurred in connection with the provision of equipment, installation and maintenance are borne by Telkomsel.
The Company and its subsidiaries were earned interconnection income from Indosat of Rp.700,125 million and Rp.617,199 million for nine months period ended September 30, 2010
and 2011, respectively, representing 1.3 and 1.2 of the total operating revenues for each period.
The Company and its subsidiaries were charged interconnection charges from Indosat of Rp.685,044 million and Rp.604,270 million for nine months period ended September 30, 2010
and 2011, respectively, representing 2.0 and 1.6 of the total operating expenses for each period.
Telkomsel also has an agreement with Indosat on the usage of Indosats telecommunications facilities. The agreement, which was made in 1997 and is valid for eleven years, is subject to
change based on annual review and mutual agreement by both parties. In 2009, the agreement was renewed for 5 five years through April 1, 2014. The income expense from the usage of the
facilities amounted to Rp.3,238 million and Rp.2,603 million for nine months period ended September 30, 2010 and 2011, respectively, representing 0.01 of the total operating income
expense for nine months period ended September 30, 2010 and 2011, respectively.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
105
44. RELATED PARTY TRANSACTIONS continued c. Indosat continued
Other agreements between Telkomsel and Indosat are as follows: i. Agreement on Construction and Maintenance for Jakarta-Surabaya Cable System
J-S Cable System On October 10, 1996, Telkomsel, Lintasarta, PT Satelit Palapa Indonesia “Satelindo” and
Indosat the “Parties” entered into an agreement on the construction and maintenance of the J-S Cable System and is valid for 25 years. The construction of the cable system was
completed in 1998. In accordance with the agreement, Telkomsel shared 19.325 of the total construction costs. Operating and maintenance costs are shared based on an agreed
formula.
Telkomsels share of the operating and maintenance cost of the cable system amounted to Rp.426 million and Rp.5 million for nine months period ended September 30, 2010 and 2011,
respectively.
ii. IRU Agreement On September 21, 2000, Telkomsel entered into agreement with Indosat on the use of
SEA-ME-WE 3 and Tail Link in Jakarta and Medan. In accordance with the agreement, Telkomsel was granted an IRU for certain capacity of the Link starting from
September 21, 2000 until September 20, 2015, in return for an up-front payment of US2.7 million Note 12. In addition to the up-front payment, Telkomsel is also charged annual
operating and maintenance costs amounting to US0.1 million.
On December 8, 2010, the agreement was terminated with no refund of upfront payment. In 1994, the Company transferred to Satelindo the right to use a parcel of Company-owned land
located in Jakarta which had been previously leased to Telekomindo. Based on the transfer agreement, Satelindo is given the right to use the land for 30 years and can apply for the right to
build properties thereon. The ownership of the land is retained by the Company. Satelindo agreed to pay Rp.43,023 million to the Company for the right to use of 30 years. Satelindo paid
Rp.17,210 million in 1994 while the remaining balance Rp.25,813 million was not paid because the Utilization Right “Hak Pengelolaan Lahan” or HPL on the land could not be delivered as
provided in the transfer agreement. In 2000, the Company and Satelindo agreed on an alternative solution resulting in the payment being treated as a lease expense up to 2006. In 2001, Satelindo
paid an additional amount of Rp.59,860 million as lease expense up to 2024. As of December 31, 2010 and September 30, 2011, the prepaid portion is shown in the consolidated statement of
financial positions as “Advances from customers and suppliers”.
The Company provides leased lines to Indosat and its subsidiaries, namely Indosat Mega Media, Lintasarta and PT Sistelindo Mitralintas. The leased lines can be used by these companies for
telephone, telegraph, data, telex, facsimile or other telecommunication services. Revenues earned from these transactions amounted to Rp.101,486 million and Rp.92,010 million for nine
months period ended September 30, 2010 and 2011, respectively, representing 0.2 of the total operating revenues for each period.
