PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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45. POST-RETIREMENT HEALTH CARE BENEFITS continued
The following table presents the change in projected benefit obligation, the change in plan assets, funded status of the plan and the net amount recognized in the Company’s balance sheets as of
September 30, 2005 and 2006:
2005 2006
As restated Change in projected benefit obligation
Projected benefit obligation at beginning of the period 4,681,005
5,574,489 Service cost
65,727 80,635
Interest cost 380,996
454,180 Actuarial loss
317,875 378,549
Benefits paid 94,484
103,925 Projected benefit obligation at end of the period
5,351,119 6,383,928
Change in plan assets Fair value of plan assets at beginning of the period
1,138,768 1,493,897
Actual return on plan assets 33,907
108,948 Employer contributions
326,924 570,046
Benefits paid 94,484
103,925 Fair value of plan assets at end of the period
1,405,115 2,068,967
Funded status 3,946,004
4,314,962 Unrecognized net actuarial loss
914,061 1,377,566
Accrued post-retirement health care benefit cost 3,031,943
2,937,396
The movement of the accrued post-retirement health care benefit cost during the nine months period ended September 30, 2005 and 2006 is as follows:
2005 2006
As restated
Accrued post-retirement health care benefit cost at beginning of year 2,983,707
3,048,021 Net periodic post-retirement health care benefit cost
less amounts charged to KSO Units 366,440
449,514 Amounts charged to KSO Units under contractual agreement
8,720 9,907
Contributions 326,924
570,046 Accrued post-retirement health care benefit cost at end of the period
3,031,943 2,937,396
The 2005 figures have been restated due to the adoption of PSAK 24R see Note 4a.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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46. RELATED PARTY INFORMATION
In the normal course of business, the Company and its subsidiaries entered into transactions with related parties. It is the Companys policy that the pricing of these transactions be the same as those of
arms-length transactions.
The following are significant agreementstransactions with related parties:
a. Government of the Republic of Indonesia
i. The Company obtained “two-step loans” from the Government of the Republic of Indonesia,
the Companys majority stockholder. Interest expense for two-step loans amounted to Rp254,014 million and Rp298,258 million
in 2005 and 2006, respectively. Interest expense for two-step loan reflected 27.7 and 34.6 of total interest expense in 2005 and 2006, respectively.
ii. The Company and its subsidiaries pay concession fees for telecommunications services provided and radio frequency usage charges to the Ministry of Communications formerly,
Ministry of Tourism, Post and Telecommunications of the Republic of Indonesia. Concession fees amounted to Rp499,880 million and Rp363,340 million in 2005 and 2006,
respectively. Concession fees reflected 2.9 and 1.8 of total operating expenses in 2005 and 2006, respectively. Radio frequency usage charges amounted to Rp441,980 million and
Rp243,688 million in 2005 and 2006, respectively. Radio frequency usage charges reflected 2.6 and 1.2 of total operating expenses in 2005 and 2006, respectively.
iii. Beginning in 2005, the Company and its subsidiaries pay Universal Service Obligation
“USO” charges to the Ministry of Communications and Information “MoCI” of the Republic of Indonesia pursuant to the MoCI Regulation No.15PERM.KOMINFO92005
of September 30, 2005.
USO charges amounted to Rp279,699 million in 2006, which reflected 1.4 of total operating expenses in 2006.
b. Commissioners and Directors Remuneration
i. The Company and its subsidiaries provide honorarium and facilities to support the operational duties of the Board of Commissioners. The total of such benefits amounted to
Rp14,045 million and Rp15,030 million in 2005 and 2006, respectively, which reflected 0.1 and 0.1 of total operating expenses in 2005 and 2006, respectively.
ii. The Company and its subsidiaries provide salaries and facilities to support the operational
duties of the Board of Directors. The total of such benefits amounted to Rp39,425 million and Rp64,167 million in 2005 and 2006, respectively, which reflected 0.2 and 0.3 of
total operating expenses in 2005 and 2006, respectively.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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46. RELATED PARTY INFORMATION continued
c. Indosat
Through December 19, 2002, the Government was the majority and controlling shareholder of Indosat and therefore, Indosat was under the same common control as the Company. Following
the sale of the Government’s 41.94 ownership interest in Indosat on December 20, 2002 Note 30, the Government’s ownership interest in Indosat was reduced to approximately 15. The
Company still considers Indosat as a related party because the Government can exert significant influence over the financial and operating policies of Indosat by virtue of its right to appoint one
director and one commissioner of Indosat.
Following the merger of Indosat, PT Indosat Multimedia Mobile “IM3”, Satelindo and PT Bimagraha Telekomindo on November 20, 2003, all rights and obligations arising from the
agreements entered by the Company with IM3 and Satelindo were transferred to Indosat.
The Company has an agreement with Indosat for the provision of international telecommunications services to the public.
The principal matters covered by the agreement are as follows: i.
The Company provides a local network for customers to make or receive international calls. Indosat provides the international network for the customers, except for certain border
towns, as determined by the Director General of Post and Telecommunications of the Republic of Indonesia. The international telecommunications services include telephone,
telex, telegram, package switched data network, television, teleprinter, Alternate VoiceData Telecommunications “AVD”, hotline and teleconferencing.
ii. The Company and Indosat are responsible for their respective telecommunications facilities. iii. Customer billing and collection, except for leased lines and public phones located at the
international gateways, are handled by the Company. iv. The Company receives compensation for the services provided in the first item above, based
on the interconnection tariff determined by the Minister of Communications of the Republic of Indonesia.
The Company has also entered into an interconnection agreement between the Companys fixed- line network and Indosats cellular network in connection with the implementation of Indosat
Multimedia Mobile services and the settlement of the related interconnection rights and obligations.
The Company also has an agreement with Indosat for the interconnection of Indosats GSM mobile cellular telecommunications network with the Companys PSTN, enabling the Companys
customers to make outgoing calls to or receive incoming calls from Indosats customers.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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46. RELATED PARTY INFORMATION continued
