PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
116
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
vi Trademark License Agreement On June 23, 2014, TII signed an agreement with Mobile Telecommunication Company Zain
Saudi Arabia for the telecommunications product and service trademark license agreement over a 5-year term has elapsed from the effective date. Subsequently, on November 7, 2014,
TII signed an agreement with Al Lama Group for distributions and sales of SIM Card and exploration of other business opportunities in Saudi Arabia.
42. CONTINGENCIES
In the ordinary course of business, the Group has been named as defendants in various legal actions in relation with land disputes, monopolistic practice and unfair business competition and SMS cartel
practices. Based on managements estimate of the probable outcomes of these matters, the Group has recognized provision for losses amounting to Rp25 billion as of December 31, 2014.
a.
The Company, Telkomsel and seven other local operators are being investigated by The Commission for the Supervision of Business Competition “Komisi Pengawasan Persaingan
Usaha” or “KPPU” for allegations of SMS cartel practices. As a result of the investigations on June 17, 2008, KPPU found that the Company, Telkomsel and certain other local operators had
violated Law No. 5 year 1999 article 5 and charged the Company and Telkomsel penalty in the amounts of Rp18 billion and Rp25 billion, respectively.
Management believes that there are no such cartel practices that led to a breach of prevailing regulations. Accordingly, the Company and Telkomsel filed an appeal with the Bandung District
Court and South Jakarta District Court on July 14, 2008 and July 11, 2008, respectively.
Due to the filing of case by operators in various courts, the KPPU subsequently requested the Supreme Court SC to consolidate the cases into the Central Jakarta District Court. Based on the
SC’s decision letter dated April 12, 2011, the SC appointed the Central Jakarta District Court to investigate and resolve the case.
As of the issuance date of the consolidated financial statements, there has not been any notification on the case from the court.
b. The Company is a defendant in a case filed in Makassar District Court by Andi Jindar Pakki and his affiliates over a land property on Jl. A.P. Pettarani. On May 8, 2013, the court pronounced its
verdict and ordered the Company to pay fair compensation or to vacate and surrender the disputed land to the plaintiffs.
On May 20, 2013, the Company filed an appeal to the Makassar High Court, objecting to the District Court’s ruling. In December 2013, the Makassar High Court pronounced its verdict that is
favorable to the plaintiffs and the Company filed an appeal to the SC. In January 2015, the Company received the SC Notice regarding the case Note 47a.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
117 43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
2014 Rupiah
U.S. dollar Japanese yen
Others equivalent
in millions in millions in millions in billions
Assets Cash and cash equivalents
364.47 8.45
15.59 4,721
Other current financial assets 15.50
- -
193 Trade receivables
Related parties 2.05
- -
26 Third parties
72.88 -
2.83 938
Other receivables 0.39
- 0.11
6 Advances and other non-current assets
4.06 -
0.05 52
Total assets 459.35
8.45 18.58
5,936
Liabilities Trade payables
Related parties 0.21
- 0.16
5 Third parties
215.68 19.36
3.41 2,725
Other payables 3.42
- 1.15
57 Accrued expenses
65.91 27.39
1.02 836
Short-term bank loan 100.00
- -
1,244 Advances from customers and suppliers
2.41 -
0.07 31
Current maturities of long-term liabilities 34.60
767.90 -
510 Promissory notes
7.16 -
- 88
Long-term liabilities - net of current maturities 71.00
6,911.08 -
1,597 Total liabilities
500.39 7,725.73
5.81 7,093
Liabilities - net 41.04
7,717.28 12.77
1,157 2013
Rupiah U.S. dollar
Japanese yen Others
equivalent in millions in millions in millions
in billions Assets
Cash and cash equivalents 394.30
1.23 11.42
4,940 Other current financial assets
10.78 -
- 131
Trade receivables Related parties
2.44 -
- 30
Third parties 66.27
- 0.17
808 Other receivables
0.68 -
0.13 10
Advances and other non-current assets 5.76
- -
70 Total assets
480.23 1.23
11.72 5,989
Liabilities Trade payables
Related parties 1.40
- -
17 Third parties
275.35 -
4.33 3,409
Other payables 7.62
- 0.09
94 Accrued expenses
51.41 18.63
0.01 629
Short-term bank loan -
- -
- Advances from customers and suppliers
1.60 -
0.01 20
Current maturities of long-term liabilities 34.85
767.90 -
514 Promissory notes
28.67 -
- 349
Long-term liabilities - net of current maturities 78.82
7,678.98 -
1,850 Total liabilities
479.72 8,465.51
4.44 6,882
Liabilities - net 0.51
8,464.28 7.28
893
Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period.