PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
107
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
c.
Others continued
v USO continued For three months period ended March 31, 2014 and 2013, the Company and Telkomsel
recognized the following amounts:
2014 2013
Revenues Construction
- Operation of telecommunication
service centre -
Profits Construction
35 78
Operation of telecommunication service centre
57 8
As of March 31, 2014, the Company’s and Telkomsel’s trade receivables from the USO programs which are measured at amortized cost using the effective interest ratemethod
amount to Rp727 billion Notes 6 and 12.
42. CONTINGENCIES
In the ordinary course of business, the Company and subsidiaries have 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 Company and subsidiaries have recognized provision for losses amounting to
Rp47 billion as of March 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.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
108
42. CONTINGENCIES continued
a. continued 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 landproperty 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 Supreme Court. As of the issuance date of the consolidated financial statements, no decision has been reached on the
appeal.
43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
March 31, 2014 Rupiah
U.S. dollar Japanese yen
Others equivalent
in millions in millions
in millions in billions
Assets Cash and cash equivalents
395.86 1.30
10.94 4,629
Temporary investment 11.78
0.00 0.06
134 Trade receivables
Related parties 2.21
0.00 0.00
25 Third parties
67.45 0.00
0.27 769
Other receivables 0.87
0.00 0.41
11 Advances and other non-current assets
7.05 0.00
0.00 80
Total assets 485.22
1.30 11.68
5,648 Liabilities
Trade payables Related parties
8.02 0.00
0.17 94
Third parties 263.36
7.83 2.36
3,168 Other payables
7.85 0.00
0.17 90
Accrued expenses 72.30
624.31 0.29
838 Advances from customers and suppliers
1.79 0.00
0.02 20
Current maturities of long-term liabilities 40.40
767.90 0.00
545 Promissory notes
25.71 0.00
0.00 292
Long-term liabilities - net of current maturities 95.22
7,678.98 0.00
1,938 Total liabilities
514.65 9,079.02
3.01 6,985
Liabilities - net 29.43
9,077.72 8.67
1,337 December 31, 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
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.