PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012 AND FOR THE YEAR THEN ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2011 AND FOR THE YEAR THEN ENDED AND AS OF JANUARY 1, 2011
Figures in tables are presented in billions of Rupiah, unless otherwise stated
110
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
vi USO continued b. Telkomsel continued
Telkomsel has received the advance from BPPPTI for the USO Program of Desa Pinter amounting to Rp36 billion net of tax. Telkomsel had issued bank guarantees with a total
amount of Rp52 billion for the advance and as performance bonds.
Part of the advances received from BPPPTI from the USO Program in border areas and Desa Pinter totaling Rp37 billion was recorded as part of accounts payable.
On December 31, 2012, the Company’s and Telkomsel’s trade receivables of the USO programs which are measured at amortized cost using the effective interest method is
amounting to Rp533 billion Notes 5 and 11.
42. CONTINGENCIES
a. 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 Rp53 billion as of December 31, 2012.
b. 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 amount 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 have 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 filling of case by operators in various courts, subsequently, the KPPU requested the SC to consolidate the cases into 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 received any notification from the court.
c. Pursuant to the dispute between Telkomsel and PT Prima, a distributor of Telkomsel of pulse reload vouchers under a distribution agreement by both parties, based on its verdict on
September 14, 2012, the Central Jakarta District Court accepted a bankruptcy petition against Telkomsel filed by PT Prima.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012 AND FOR THE YEAR THEN ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2011 AND FOR THE YEAR THEN ENDED AND AS OF JANUARY 1, 2011
Figures in tables are presented in billions of Rupiah, unless otherwise stated
111
42. CONTINGENCIES continued
c. continued The bankruptcy petition was filed by PT Prima on the basis of:
• PT Prima’s claim on overdue receivables from Telkomsel amounting to Rp5.26 billion which
represents undelivered pulse reload vouchers based on orders covered by purchase orders •
Receivable of another company from Telkomsel Telkomsel argued that the payable to the other company has been paid and PT Prima has no
right to claim receivable from Telkomsel, considering that PT Prima has not made any payment to Telkomsel on its orders and it has breached the terms and conditions as stipulated in the above-
mentioned agreement. Therefore, the requirement for a bankruptcy petition should not have been met.
Accordingly, Telkomsel has taken necessary actions to resolve the case including filing an appeal to the Supreme Court “SC” on September 21, 2012.
On November 21, 2012, within the SC’s verdict No. 704 KPdt.Sus2012, SC decided to:
• Approve the Telkomsel’s appeals
• Revoke the Central Jakarta District Court’s verdict
As of the issuance date of consolidation financial statement, the case is still in a Judicial Review “Peninjauan Kembali” or “PK” process in the SC since PT Prima filed a PK on the SC’s verdict
Note 47 g.
The Company and subsidiaries do not believe that any subsequent investigation or court decision on the above matters and cases will have significant financial impact to the Company and subsidiaries.
43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies balances are as follows:
2012 Rupiah
U.S. Dollars Japanese Yen
Others equivalent
in millions in millions
in millions in billions
Assets Cash and cash equivalents
412.69 1.33
6.38 4,042
Other current financial assets 7.17
- -
69 Trade receivables
Related parties 9.03
- -
87 Third parties
74.89 -
0.44 727
Other receivables 1.20
- 0.06
12 Advances and other non-current assets
9.89 -
- 95
Total assets 514.87
1.33 6.88
5,032 Liabilities
Trade payables Related parties
1.49 -
- 14
Third parties 320.34
- 2.41
3,120 Other payables
0.92 -
0.13 10
Accrued expenses 75.07
32.87 3.00
759 Short-term bank loans
0.42 -
- 4
Advances from customers and suppliers 0.80
- 0.20
10 Current maturities of long-term liabilities
30.75 767.90
- 383
Promissory notes 68.62
- -
661 Long-term liabilities - net of current maturities
112.84 8,446.87
- 2,035
Total liabilities 611.25
9,247.64 5.74
6,996
Liabilities - net 96.38
9,246.31 1.14
1,964
Assets and liabilities denominated in other foreign currencies are presented as U.S. Dollars equivalents using the exchange rates prevailing at end of the reporting period.