Report No. RPC-848/PSS/2013/DAU
We have reviewed the accompanying interim consolidated financial statements of PT Indosat Tbk and its subsidiaries, which comprise the interim consolidated statement of financial position as of September 30, 2013, and the interim consolidated statement of comprehensive income, statement of changes in equity, and statement of cash flows for the nine-month period then ended, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of these interim consolidated financial statements in accordance with Indonesian Financial Accounting Standards. Our responsibility is to express a conclusion on these interim consolidated financial statements based on our review.
We conducted our review in accordance with Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", established by the Indonesian Institute of Certified Public Accountants. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing established by the Indonesian Institute of Certified Public Accountants and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of PT Indosat Tbk. and its subsidiaries as of September 30, 2013, and their consolidated financial performance and cash flows for the nine-month period then ended, in accordance with Indonesian Financial Accounting Standards.
Public Accountant Registration No. AP.0699
The accompanying notes form an integral part of these interim consolidated financial statements.
The accompanying notes form an integral part of these interim consolidated financial statements.
The accompanying notes form an integral part of these interim consolidated financial statements.
The accompanying notes form an integral part of these interim consolidated financial statements.
The accompanying notes form an integral part of these interim consolidated financial statements.
The accompanying notes form an integral part of these interim consolidated financial statements.
The accompanying notes form an integral part of these interim consolidated financial statements.
The accompanying notes form an integral part of these interim consolidated financial statements.
The accompanying notes form an integral part of these interim consolidated financial statements.
The accompanying notes form an integral part of these interim consolidated financial statements.
The accompanying notes form an integral part of these interim consolidated financial statements.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
1.
GENERAL
a.
Companys Establishment
PT Indosat Tbk (the Company) was established in the Republic of Indonesia on November 10, 1967 within the framework of the Indonesian Foreign Investment Law No. 1 of 1967 based on the notarial deed No. 55 of Mohamad Said Tadjoedin, S.H. The deed of establishment was published in Supplement No. 24 of State Gazette No. 26 dated March 29, 1968 of the Republic of Indonesia. In 1980, the Company was sold by American Cable and Radio Corporation, an International Telephone & Telegraph subsidiary, to the Government of the Republic of Indonesia (the Government) and became a State-owned Company (
Persero
).
On February 7, 2003, the Company received the approval from the Capital Investment Coordinating Board (BKPM) in its letter No. 14/V/PMA/2003 for the change of its legal status from a State-owned Company (
Persero
) to a Foreign Capital Investment Company. Subsequently, on March 21, 2003, the Company received the approval from the Ministry of Justice and Human Rights of the Republic of Indonesia on the amendment of its Articles of Association to reflect the change in its legal status.
The Companys Articles of Association has been amended from time to time. The latest amendment was covered by notarial deed No. 123 dated January 28, 2010 of Aulia Taufani, S.H. (as a substitute notary of Sutjipto, S.H.), as approved in the Stockholders Extraordinary General Meeting held on January 28, 2010, in order to comply with the Indonesian Capital Market and Financial Institutions Supervisory Agency (BAPEPAM-LK) Rule No. IX.J.1 dated May 14, 2008 on the Principles of Articles of Association of Limited Liability Companies that Conduct Public Offering of Equity Securities and Public Companies and Rule No. IX.E.1 on Affiliate Transactions and Certain Conflict of Interests Transactions. The latest amendment of the Companys Articles of Association has been reported to and approved by the Ministry of Law and Human Rights of the Republic of Indonesia based on its letters No. AHU-09555.AH.01.02 Year 2010 dated February 22, 2010 and No. AHU-AH.01.10-04964 dated February 25, 2010. The latest amendment relates to, among other matters, the changes in the Companys purposes, objectives and business activities, appointment of acting President Director if the incumbent President Director is unavailable and definition of conflict of interests.
According to article 3 of its Articles of Association, the Companys purposes and objectives are
to provide telecommunications networks, telecommunications services as well as information technology and/or convergence technology services by carrying out the following main business activities:
a.
To provide telecommunications networks, telecommunications services as well as information technology and/or convergence technology services, including but not limited to providing basic telephony services, multimedia services, internet telephony services, network access point service, internet services, mobile telecommunications networks and fixed telecommunications networks; and
b.
To engage in payment transactions and money transfer services through telecommunications networks as well as information technology and/or convergence technology.
The Company can provide supporting business activities in order to achieve the purposes and objectives, and to support its main businesses, as follows:
a.
To plan, to procure, to modify, to build, to provide, to develop, to operate, to lease, to rent, and to maintain infrastructures/facilities including resources to support the Companys business in providing telecommunications networks, telecommunications services as well as information technology and/or convergence technology services;
1.
GENERAL (continued)
a.
Companys Establishment (continued)
b.
To conduct business and operating activities (including development, marketing and sales of telecommunications networks, telecommunications services as well as information technology and/or convergence technology services by the Company), including research, customer services, education and courses (both domestic and overseas); and
c.
To conduct other activities necessary to support and/or related to the provision of telecommunications networks, telecommunications services as well as information technology and/or convergence technology services including, but not limited to, electronic transactions and provision of hardware, software, content as well as telecommunications-managed services.
The Company started its commercial operations in 1969.
For the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011, the Company has performed all main and supporting business activities as stated in its Articles of Association.
Based on Law No. 3 of 1989 on Telecommunications and pursuant to Government Regulation No. 77 of 1991, the Company had been re-confirmed as an Operating Body (Badan Penyelenggara) that provided international telecommunications services under the authority of the Government.
In 1999, the Government issued Law No. 36 on Telecommunications (Telecommunications Law) which took effect on September 8, 2000. Under the Telecommunications Law, telecommunications activities cover:
·
Telecommunications networks
·
Telecommunications services
·
Special telecommunications services
National state-owned companies, regional state-owned companies, privately-owned companies and cooperatives are allowed to provide telecommunications networks and services. Individuals, government institutions and legal entities, other than telecommunications networks and service providers, are allowed to render special telecommunications services.
The Telecommunications Law prohibits activities that result in monopolistic practices and unhealthy competition and expects to pave the way for market liberalization.
Based on the Telecommunications Law, the Company ceased as an Operating Body and has to obtain licenses from the Government for the Company to engage in the provision of specific telecommunications networks and services.
On August 14, 2000, the Government, through the Ministry of Communications (MOC), granted the Company an in-principle license as a nationwide Digital Communication System (DCS) 1800 telecommunications provider as compensation for the early termination of the exclusivity rights on international telecommunications services given to the Company prior to the granting of such licenseeffective August1,2003. On August 23, 2001, the Company obtained the operating license from the MOC. Subsequently, based on Decree No. KP.247 dated November 6, 2001 issued by the MOC, the operating license was transferred to the Companys subsidiary, PT Indosat Multi Media Mobile (see e below).
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
1.
GENERAL (continued)
a.
Companys Establishment (continued)
On September 7, 2000, the Government, through the MOC, also granted the Company in-principle licenses for local and domestic long-distance telecommunications services as compensation for the termination of its exclusivity rights on international telecommunications services. On the other hand, PT Telekomunikasi Indonesia Tbk (Telkom) was granted an in- principle license for international telecommunications services as compensation for the early termination of Telkoms rights on local and domestic long-distance telecommunications services.
Based on a letter dated August 1, 2002 from the MOC, the Company was granted an operating license for fixed local telecommunications network covering Jakarta and Surabaya. This operating license was converted to become a national license on April 17, 2003 based on Decree No. KP.130 Year 2003 of the MOC. The values of the above licenses granted to Telkom and the Company on the termination of their exclusive rights on local/domestic and international telecommunications services, respectively, have been determined by an independent appraiser.
The following are operating licenses obtained by the Company and PT Indosat Mega Media,
a subsidiary:
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Licenses No.
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Date Issued
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Issuing Body
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Period of
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Description
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License
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19/KEP/M.KOMINFO/
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February 14, 2006
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Ministry of
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10 years
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Determination of the winner and operating license for IMT-2000 cellular network provider using 2.1 GHz radiofrequency spectrum (a third generation ["3G"]) mobile communicationstechnology for 1 block (2 x 5 Mhz) of frequency (*)
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02/2006 and
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and March 27, 2006
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Communications and
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29/KEP/M.KOMINFO/
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Information
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03/2006
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Technology
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("MOCIT")
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504/KEP/M.KOMINFO/
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August 31, 2012
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MOCIT
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Evaluated
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Amended Indosat's Mobile CellulerLicense which allows Indosat to deploy3rd Generation Partnership Project (3Gsystem) at 900 MHz spectrum band.The Ministerial Decree replaces Indosat's previous licenses No. 252/KEP/M.KOMINFO/07/2011and 102/KEP/M.KOMINFO/10/2006.
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08/2012
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every
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5 years
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460/M.KOMINFO/12/
2011
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December 7, 2011
|
MOCIT
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Satellite end
of life
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Approval for Indonesian Satellite to utilize Orbital Slot 150
o
(**)
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252/KEP/
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July 6, 2011
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MOCIT
|
Evaluated
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Amended operating license for nationwide GSM cellular mobilenetwork (including its basic telephone services and the rights and obligations relating to 3G services), which replaces the previous licenseNo. 102/KEP/M.KOMINFO/10/2006dated October 11, 2006
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M.KOMINFO/07/2011
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every
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(previously
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5 years
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102/KEP/M.KOMINFO/
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10/2006)
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181/KEP/M.KOMINFO/
|
December 12, 2006
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MOCIT
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-
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Allocation of two nationwide frequencychannels, i.e., channels 589 and 630in the 800 MHz spectrum for LocalFixed Wireless Network Services withLimited Mobility
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12/2006
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01/DIRJEN/2008
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January 7, 2008
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Directorate General
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Evaluated
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Operating license as internet serviceprovider
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of Post and
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every
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Telecommunications
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5 years
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("DGPT")
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51/DIRJEN/2008
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January 9, 2008
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DGPT
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Evaluated
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Operating license for internetinterconnection services (NetworkAccess Point/NAP), which replacesthe previous license given toPT Satelit Palapa Indonesia("Satelindo")
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every
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5 years
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(*) As one of the winners in the selection of IMT-2000 cellular providers, the Company was obliged to, among others, pay upfront fee of Rp320,000 (Note 3a) and
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radio frequency fee (Note 33l).
(**)On September 19, 2013, the MOCIT issued letter No. 838/KOMINFO/DJSDPPI.2/SP.01/09/2013 regarding the Governments plan to retrieve the Companys right to fill up Orbital Slot 150
O
. The Company has replied to the letter on September 20, 2013 describing the Companys plan to construct Palapa E Satellite to file the Orbital Slot 150
O
(Note 33d). As of October 24, 2013, the Company has not received any response from the MOCIT.
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
1.
GENERAL (continued)
a.
Companys Establishment (continued)
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Licenses No.
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Date Issued
|
Issuing Body
|
Period of
|
Description
|
|
|
|
|
|
License
|
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52/DIRJEN/2008
|
January 9, 2008
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DGPT
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Evaluated
|
Operating license for telephonyinternet services which replaces theprevious licenseNo. 823/DIRJEN/2002 for Voice overInternet Protocol Service with nationalcoverage that expired in 2007
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every
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5 years
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237/KEP/M.KOMINFO/
|
July 27, 2009
|
MOCIT
|
10 years
|
Operating license for "Packet Switched" local fixed telecommunications network using 2.3GHZ radio frequency spectrum ofBroadband Wireless Access (BWA)(***)
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7/2009
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268/KEP/M.KOMINFO/
|
September 1, 2009
|
MOCIT
|
10 years
|
Operating licenses for one additionalblock (2 x 5 Mhz) of 3G frequency
(****)
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9/2009
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198/KEP/M.KOMINFO/
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May 27, 2010
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MOCIT
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Evaluated
|
Amended operating license fornationwide closed fixed communications network (e.g.,VSAT,frame relay, etc.), which replaces the previous license No.KP.69/Thn 2004given to the Company
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05/2010
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every
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5 years
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311/KEP/M.KOMINFO/
|
August 24, 2010
|
MOCIT
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Evaluated
|
Amended operating license for fixed network and basic telephony service which covers the provision of local,national long-distance, andinternational long-distance telephonyservices, which replaces the previous license No. KP.203/Thn 2004 given tothe Company
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8/2010
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every
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312/KEP/M.KOMINFO/
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5 years
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8/2010
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And
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313/KEP/M.KOMINFO/
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8/2010
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(***) PT Indosat Mega Media was obliged to, among others, pay upfront fee of Rp18,408 (Note 3a) and radio frequency fee (Note 33l).
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(****) The Company was obliged to, among others, pay upfront fee of Rp320,000 (Note 3a) and radio frequency fee (Note 33l).
|
On January 9, 2008, based on letter No. 10/14/DASP from Bank Indonesia (Central Bank), the Company obtained approval for
Indosat m-wallet
prepaid cards as a new means of making payments to certain merchants. The Company was also appointed as a special principal and technical acquirer for such prepaid cards. On November 19, 2009, the Company launched
Indosat m-wallet
to the public.
On March 17, 2008, the MOCIT issued Ministerial Decree No. 02/PER/M.KOMINFO/2008 on the Guidelines of Construction and Utilization of Sharing Telecommunications Towers. Based on this Decree, the construction of telecommunications towers requires permits from the relevant governmental institution and the local government determines the placement of the towers and the location in which the towers can be constructed. Furthermore, a telecommunications provider or tower provider which owns telecommunications towers is obliged to allow other telecommunications operators to utilize its telecommunications towers without any discrimination. The Decree also mandated that each of the tower contractor, provider and owner be 100% locally-owned companies.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
1.
GENERAL (continued)
a.
Companys Establishment (continued)
On March 30, 2009, the Ministry of Domestic Affairs, Ministry of Public Works, MOCIT and Head of BKPM jointly issued Decrees No. 18 Year 2009, No. 07/PRT/M/2009, No. 19/PER/M.KOMINFO/03/09 and No. 3/P/2009, respectively, on the Detailed Guidelines of Construction and Utilization of Sharing Telecommunications Towers. The Decrees define the requirements and procedures for tower construction. A tower provider can be either a telecommunications operator or a non-telecommunications operator. If a tower provider is a non-telecommunications operator, it is required to be a 100% locally owned company.
On September 3, 2010, based on letter No. 12/67/DASP/25 from Bank Indonesia (Central Bank), the Company obtained approval to become a
money remittance provider
to customers in the local and international markets.
On December 13, 2010, based on letter No. 2619/BSN/D3-d3/12/2010 from the Badan Standardisasi Nasional (National Standardization Bureau), the Company obtained Issuer Identification Number (IIN) on its applications for
Indosat m-wallet
and
money remittance
. On March 23, 2011, the President of the Republic of Indonesia issued Regulation or
Peraturan Pemerintah
(PP) No. 3 year 2011 regarding money remittance. This regulation becomes the operational guidance for the Company as a money remittance provider.
The Company is domiciled at Jalan Medan Merdeka Barat No. 21, Jakarta and has 2 regional offices located in Jakarta and Medan.
Ooredoo QSC, Qatar (previously Qatar Telecom QSC) (Ooredoo) is the ultimate parent company of the Company and subsidiaries. The immediate parent company of the Company is Ooredoo Asia Pte. Ltd., previously Qatar Telecom (Qtel Asia) Pte. Ltd., Singapore.
b.
Companys Public Offerings
On September 23, 1994, the Company obtained the effective statement from the Capital Market Supervisory Agency (BAPEPAM) to conduct the initial public offering in the Jakarta Stock Exchange through BAPEPAM Letter No. S-1656/PM/1994 and in the New York Stock Exchange of its 362,425,000 B shares, consisting of 22,510,870 American Depositary Shares (ADS, each representing 10 B Shares) and 103,550,000 B shares from the divestment of the B shares owned by the Government. The Companys B shares and ADS have been registered in the Indonesia Stock Exchange (new entity after the merger of the Jakarta Stock Exchange and the Surabaya Stock Exchange in November 2007) and New York Stock Exchange since October 19, 1994. However, the Company has delisted its ADS from the New York Stock Exchange as of May 17, 2013.
Based on the resolution at the Companys Extraordinary General Meeting held on March 8, 2004, the stockholders approved to split the nominal value of the Companys B shares from Rp500 to Rp100 resulting in the increase in the number of authorized shares from 4,000,000,000 to 20,000,000,000 shares and in the number of issued and fully paid shares from 1,035,500,000 to 5,177,500,000 shares.
During the period August 1, 2004 to December 31, 2006, the Company issued additional 256,433,500 B shares in connection with the exercise of its Employee Stock Option Program (ESOP) Phases I and II. The ESOP program was approved in the Companys Stockholders Annual General Meeting held on June 26, 2003.
1.
GENERAL (continued)
a.
Companys Public Offerings (continued)
As of September 30, 2013, the outstanding bonds issued to the public by the Company and a subsidiary are as follows:
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Bond (Note 19)
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Effective Date
|
Registered with and Traded on:
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1. Fifth Indosat Bonds in Year 2007 with Fixed
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May 29, 2007
|
Indonesia Stock Exchange
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Rates
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2. Indosat Sukuk Ijarah II in Year 2007
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May 29, 2007
|
Indonesia Stock Exchange
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3. Sixth Indosat Bonds in Year 2008 with Fixed
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April 9, 2008
|
Indonesia Stock Exchange
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Rates
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4. Indosat Sukuk Ijarah III in Year 2008
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April 9, 2008
|
Indonesia Stock Exchange
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5. Seventh Indosat Bonds in Year 2009 with
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December 8, 2009
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Indonesia Stock Exchange
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Fixed Rates
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6. Indosat Sukuk Ijarah IV in Year 2009
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December 8, 2009
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Indonesia Stock Exchange
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7. Guaranteed Notes Due 2020
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July 29, 2010
|
Singapore Exchange Securities Trading Limited
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8. Eighth Indosat Bonds in Year 2012
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June 27, 2012
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Indonesia Stock Exchange
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9. Indosat Sukuk Ijarah V in Year 2012
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June 27, 2012
|
Indonesia Stock Exchange
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c.
Directors, Commissioners and Audit Committee
Based on resolutions of the Stockholders Annual General Meeting and the Stockholders Extraordinary General Meetings held on June 18, 2013, September 17, 2012, June 24, 2011 which are notarized under Deeds No. 84 and No. 5 of Aryanti Artisari, S.H., M.Kn., and No. 148 of Aulia Taufani, S.H. (as substitute notary of Sutjipto, S.H.), respectively, on the same dates, the composition of the Companys Board of Commissioners and Board of Directors as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, respectively, is as follows:
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January 1, 2012/
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September 30, 2013
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December 31,
2012
|
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December 31, 2011
|
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Board of Commissioners:
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President Commissioner
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Abdulla Mohammed
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Abdulla Mohammed
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Abdulla Mohammed
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S.A Al Thani
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S.A Al Thani
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S.A Al Thani
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Commissioner
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Dr. Nasser Mohd.
|
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Dr. Nasser Mohd.
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Dr. Nasser Mohd.
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A. Marafih
|
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A. Marafih
|
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A. Marafih
|
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Commissioner
|
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Rachmad Gobel
|
|
Rachmad Gobel
|
|
Rachmad Gobel
|
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Commissioner
|
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Richard Farnsworth
|
|
Richard Farnsworth
|
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Richard Farnsworth
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Seney*
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Seney*
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Seney
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Commissioner
|
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Rionald Silaban
|
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Rionald Silaban
|
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Rionald Silaban
|
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Commissioner
|
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Rudiantara*
|
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Rudiantara*
|
Alexander Rusli*
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Commissioner
|
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Chris Kanter*
|
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Chris Kanter*
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Chris Kanter*
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Commissioner
|
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Cynthia Alison
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Thia Peng Heok
|
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Thia Peng Heok
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Gordon**
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George*
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George*
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Commissioner
|
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Soeprapto*
|
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Soeprapto*
|
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Soeprapto*
|
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Commissioner
|
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Beny Roelyawan
|
|
Beny Roelyawan
|
|
-
|
|
*
Independent Commissioner
**
Based on the resolution of the Companys Stockholders Annual General Meeting (SAGM) held on June 18, 2013, Mrs. Cynthia Alison Gordon was appointed as Commissioner to replace Mr. Thia Peng Heok George, effective on the same date.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
1.
GENERAL (continued)
c.
Directors, Commissioners and Audit Committee (continued)
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September 30,
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December 31,
|
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January 1, 2012/
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2013
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|
2012
|
|
December 31, 2011
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Board of Directors:
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President Director and Chief
Executive Officer
|
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Alexander Rusli
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Alexander Rusli
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Harry Sasongko
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Tirtotjondro
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Director and Chief Financial Officer
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Curt Stefan Carlsson
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Curt Stefan Carlsson
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Curt Stefan Carlsson
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Director and Chief Commercial Officer
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-
|
|
Frederik Johannes Meijer
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Laszlo Imre Barta
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|
Director and Chief Technology Officer
|
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Hans Christiaan Moritz*
|
|
Hans Christiaan Moritz
|
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Hans Christiaan Moritz
|
|
|
Director and Chief Wholesale and
|
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Fadzri Sentosa
|
|
Fadzri Sentosa
|
|
Fadzri Sentosa
|
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|
|
Infrastructure Officer
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|
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*
Mr. Hans Christiaan Moritz submitted his resignation letter to the Directors and Board of Commissioners on August 31, 2013. Based on Article 16 paragraphs 6 and 7 of the Companys Articles of Association, among other things, it is stated that in the event that the Company does not convene the SAGM within the period at the latest of 60 days after the acceptance of Mr. Hans Christiaan Moritz resignation letter, then by the lapse of such period, the resignation of Mr. Hans Christiaan Moritz will become valid without the approval of the SAGM.
The composition of the Companys Audit Committee as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011 is as follows:
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January 1, 2012/
|
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|
|
September 30, 2013
|
|
December 31, 2012
|
|
December 31, 2011
|
|
|
|
|
|
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|
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Chairman
|
Richard Farnsworth Seney*
|
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Thia Peng Heok George
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Thia Peng Heok George
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Member
|
Chris Kanter
|
|
Chris Kanter
|
|
Chris Kanter
|
|
|
Member
|
Rudiantara*
|
|
Richard Farnsworth Seney
|
|
Soeprapto
|
|
|
Member
|
Unggul Saut Marupa
|
|
Unggul Saut Marupa
|
|
Unggul Saut Marupa
|
|
|
|
Tampubolon
|
|
Tampubolon
|
|
Tampubolon
|
|
|
Member
|
Kanaka Puradiredja
|
|
Kanaka Puradiredja
|
|
Kanaka Puradiredja
|
*
Based on the resolution of the Companys SAGM held on June 18, 2013, Mr. Thia Peng Heok George was no longer a member of the Companys Board of Commissioners. Based on a resolution of the Board of Commissioners meeting held on June 18, 2013, the Board of Commissioners agreed to appoint Mr. Richard Farnsworth Seney as Audit Committee Chairman to replace Mr. Thia Peng Heok George and Mr. Rudiantara as a member of the Audit Committee.
The Company and subsidiaries (collectively referred to hereafter as the Group) has approximately 4,643, 4,540 and 4,461 employees (unaudited), including non-permanent employees, as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, respectively.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
1.
GENERAL (continued)
d.
Structure of the Companys Subsidiaries
As of September 30, 2013, December 31, 2012 and January 1, 2012/ December 31, 2011, the Company has direct and indirect ownership in the following Subsidiaries:
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|
Percentage of Ownership (%) as of December 31, 2012 and January 1, 2012/December 31, 2011
|
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|
|
|
|
|
Name of Subsidiary
|
|
Location
|
|
Principal Activity
|
|
Start of
Commercial Operations
|
|
Percentage of
Ownership (%) as of
September 30, 2013
|
|
Indosat Palapa Company
|
|
Amsterdam
|
|
Finance
|
|
2010
|
|
100.00
|
|
100.00
|
|
B.V. (IPBV)
(1)
|
|
|
|
|
|
|
|
|
|
|
Indosat Mentari Company
|
|
Amsterdam
|
|
Finance
|
|
2010
|
|
100.00
|
|
100.00
|
|
B.V. (IMBV)
(1)
|
|
|
|
|
|
|
|
|
|
|
Indosat Finance Company
|
|
Amsterdam
|
|
Finance
|
|
2003
|
|
100.00
|
|
100.00
|
|
B.V. (IFB)
(4)
|
|
|
|
|
|
|
|
|
|
|
Indosat International
|
|
Amsterdam
|
|
Finance
|
|
2005
|
|
100.00
|
|
100.00
|
|
Finance Company B.V.
|
|
|
|
|
|
|
|
|
|
|
|
(IIFB)
(4)
|
|
|
|
|
|
|
|
|
|
|
Indosat Singapore Pte.
|
|
Singapore
|
|
Telecommunication
|
|
2005
|
|
100.00
|
|
100.00
|
|
Ltd. (ISPL)
|
|
|
|
|
|
|
|
|
|
|
PT Indosat Mega Media
|
|
Jakarta
|
|
Multimedia
|
|
2001
|
|
99.85
|
|
99.85
|
|
(IMM)
|
|
|
|
|
|
|
|
|
|
|
PT Interactive Vision
|
|
Jakarta
|
|
Pay TV
|
|
-
|
|
99.83
|
|
99.83
|
|
Media (IVM)
(2)
|
|
|
|
|
|
|
|
|
|
|
PT Starone Mitra
|
|
Semarang
|
|
Telecommunication
|
|
2006
|
|
84.08
|
|
72.54
|
|
Telekomunikasi
|
|
|
|
|
|
|
|
|
|
|
|
(SMT)
(5)
|
|
|
|
|
|
|
|
|
|
|
PT Aplikanusa Lintasarta
|
|
Jakarta
|
|
Data
|
|
1989
|
|
72.36
|
|
72.36
|
|
(Lintasarta)
|
|
|
|
Communication
|
|
|
|
|
|
|
PT Lintas Media Danawa
|
|
Jakarta
|
|
Information and
|
|
2008
|
|
50.65
|
|
50.65
|
|
(LMD)
(3)
|
|
|
|
Communication
|
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
|
|
|
|
|
PT Artajasa Pembayaran
|
|
Jakarta
|
|
Telecommunication
|
|
2000
|
|
39.80
|
|
39.80
|
|
Elektronis (APE)
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets (Before Eliminations)
|
|
|
|
|
|
|
|
|
January 1, 2012 /
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
Name of Subsidiary
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
IPBV
(1)
|
|
7,602,529
|
|
6,442,367
|
|
6,015,894
|
|
|
IMBV
(1)
|
|
7,595,030
|
|
6,436,524
|
|
6,010,359
|
|
|
IFB
(4)
|
|
26,885
|
|
21,963
|
|
20,923
|
|
|
IIFB
(4)
|
|
10,838
|
|
8,853
|
|
8,688
|
|
|
ISPL
|
|
135,605
|
|
99,519
|
|
78,264
|
|
|
IMM
|
|
839,457
|
|
813,308
|
|
746,404
|
|
|
IVM
(2)
|
|
5,648
|
|
5,448
|
|
5,198
|
|
|
SMT
(5)
|
|
234,405
|
|
250,856
|
|
209,651
|
|
|
Lintasarta
|
|
2,265,153
|
|
2,041,724
|
|
1,783,759
|
|
|
LMD
(3)
|
|
3,756
|
|
4,026
|
|
5,199
|
|
|
APE
(3)
|
|
435,842
|
|
371,603
|
|
258,745
|
(1)
IPBV and IMBV were incorporated in Amsterdam on April 28, 2010 to engage in treasury activities, to lend and borrow money, whether in the form of securities or otherwise, to finance enterprises and companies, and to grant security in respect of their respective obligations or those of their group companies and third parties.
(2)
IVM, a subsidiary of IMM, was established on April 21, 2009 to engage in Pay TV services. IMM made capital injections to IVM on March 9 and 30, 2011 totaling Rp4,999. On July 12, 2011, IVM obtained the license to conduct its Pay TV services. However, as of September 30, 2013, IVM has not started its commercial operations.
(3)
Lintasarta has direct 55% and 70% ownership in APE and LMD, respectively.
(4)
On July 4, 2013, the Company as the sole shareholder of IFB and IIFB resolved to voluntarily dissolve and put those two entities into voluntary liquidation, by virtue of an Extraordinary General Meeting of Shareholders (EGMS). In connection with such liquidation, IFB and IIFB have appointed IMBV as the liquidator and custodian of the books and records. A liquidation agreement has also been executed by the Company, IFB, IIFB and IMBV concerning the of liquidation (Note 39i).
(5)
On July 11, 2013, the Company made additional capital injection to SMT amounting to Rp16,549, resulting in the increase of the Companys ownership in SMT from 72.54% into 84.08%.
1.
GENERAL (continued)
e.
Merger of the Company, Satelindo, Bimagraha and IM3
Based on Merger Deed No. 57 dated November 20, 2003 (merger date) of Poerbaningsih Adi Warsito, S.H., the Company, Satelindo, PT Bimagraha Telekomindo (Bimagraha) and PT Indosat Multi Media Mobile (IM3) agreed to merge, with the Company as the surviving entity. All assets and liabilities owned by Satelindo, Bimagraha and IM3 were transferred to the Company on the merger date. These three companies were dissolved by operation of law without the need to undergo the regular liquidation process.
The names Satelindo and IM3 in the following notes refer to these entities before they were merged with the Company, or as the entities that entered into contractual agreements that were taken over by the Company as a result of the merger.
f.
Approval and Authorization for the Issuance of theUnaudited Interim Consolidated Financial Statements
The issuance of the unaudited interim consolidated financial statements of the Group as of September 30, 2013 and for the nine-month period then ended with comparative figures as of December 31, 2012 and January 1, 2012 / December 31, 2011and for the nine-month period ended September 30, 2012 was approved and authorized for issuance by the Board of Directors on October 24, 2013, as reviewed and recommended for approval by the Audit Committee.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a.
Basis of Presentation of the Interim Consolidated Financial Statements
The interim consolidated financial statements have been prepared in accordance with Indonesian Financial Accounting Standards which comprise the Statements and Interpretations issued by the Financial Accounting Standards Board of the Indonesian Institute of Accountants (DSAK) and the Regulations No. VIII.G.7 of the Guidelines on Financial Statement Presentation and Disclosures issued by BAPEPAM-LK and Decision Letter No.KEP-347/BL/2012 of the Chief of BAPEPAM-LK regarding Financial Presentation and Disclosure for Issuers or Public Companies.
The interim consolidated financial statements are prepared in accordance with Statement of Financial Accounting Standards (PSAK) 1 (Revised 2009), Presentation of Financial Statements.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
a.
Basis of Presentation of the Interim Consolidated Financial Statements (continued)
The interim consolidated financial statements, except for the interim consolidated statement of cash flows, have been prepared on the accrual basis using the historical cost concept of accounting, except as disclosed in the relevant notes herein.
The interim consolidated statement of cash flows, which has been prepared using the direct method, presents receipts and disbursements of cash and cash equivalents classified into operating, investing and financing activities.
The reporting currency used in the interim consolidated financial statements is the Indonesian rupiah, which is also the Companys functional currency. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.
b.
Principles of Consolidation
The interim consolidated financial statements include the accounts of the Company and subsidiaries mentioned in Note 1d, in which the Company maintains (directly or indirectly) equity ownership of more than 50% or less than 50% but exercises control over the subsidiary as in the case of APE.
All material intercompany transactions and account balances (including the related significant unrealized gains or losses) have been eliminated.
Subsidiaries are fully consolidated from the date of acquisitions, being the date on which the Group obtains control, and continue to be consolidated until the date such control ceases. Control is presumed to exist if the Company owns, directly or indirectly through a subsidiary, more than half of the voting power of an entity. Control also exists when the parent owns half or less of the voting power of an entity when there is:
a)
power over more than half of the voting rights by virtue of an agreement with other investors;
b)
power to govern the financial and operating policies of the entity under a statute or an agreement;
c)
power to appoint or remove the majority of the members of the board of directors or equivalent governing body and control of the entity is by that board or body; or
d)
power to cast the majority of votes at meetings of the board of directors or equivalent governing body and control of the entity is by that board or body.
Non-controlling interests (NCI) represent the portion of the profit or loss and net assets of the subsidiaries not attributable, directly or indirectly, to the Company, which are presented in the interim consolidated statement of comprehensive income and under the equity section of the interim consolidated statement of financial position, respectively, separately from the corresponding portion attributable to the equity holders of the parent company.
Losses of a non-wholly owned subsidiary are attributed to the NCI even if they create an NCI deficit balance.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
b.
Principles of Consolidation (continued)
In case of loss of control over a subsidiary, the Group:
·
derecognizes the assets (including goodwill) and liabilities of the subsidiary;
·
derecognizes the carrying amount of any NCI;
·
derecognizes the cumulative translation differences, recorded in equity, if any;
·
recognizes the fair value of the consideration received;
·
recognizes the fair value of any investment retained;
·
recognizes any surplus or deficit in profit or loss; and
·
reclassifies the parents share of components previously recognized in other comprehensive income to profit or loss or retained earnings, as appropriate.
c.
Business Combinations
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at fair value at acquisition-date and the amount of any NCI in the acquiree. For each business combination, the acquirer measures the NCI in the acquiree either at fair value or at the proportionate share of the acquirees identifiable net assets. Acquisition costs incurred are directly expensed and included in administrative expenses.
When the Group acquires a business, it assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, the acquisition-date fair value of the acquirers previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.
Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability,are recognized in accordance with PSAK 55 (Revised 2006) either in profit or loss or as other comprehensive income. If the contingent consideration is classified as equity, it should not be remeasured until it is finally settled within equity.
At acquisition date, goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount recognized for NCI over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Groups cash-generating units (CGUs) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those CGUs.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
c.
Business Combinations (continued)
Where goodwill forms part of a CGU and part of the operations within that CGU is disposed of, the goodwill associated with the operations disposed of is included in the carrying amount of the operations when determining the gain or loss on disposal of the operations. Goodwill disposed of in this circumstance is measured based on the relative values of the operations disposed of and the portion of the CGU retained.
d.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand and in banks and all unrestricted time deposits (including deposits on call) with original maturities of three months or less at the time of placement.
Time deposits which are pledged as collateral for bank guarantees are not classified as part of Cash and Cash Equivalents. These are presented as part of either Other Current Financial Assets or Other Non-current Financial Assets.
e.
Inventories
Inventories, which mainly consist of Subscriber Identification Module (SIM) cards, starter packs, broadband modems,cellular handsets and pulse reload vouchers are valued at the lower of cost or net realizable value. Cost is determined using the weighted average method.
In accordance with PSAK 14 (Revised 2008), the Group applies the guidance on the determination of inventory cost and its subsequent recognition as an expense, including any write-down to net realizable value, as well as guidance on the cost formula used to assign costs to inventories.
f.
Prepaid Frequency Fee and Licenses and Other Prepaid Expenses
Prepaid frequency fee and licenses and other prepaid expenses, which mainly consist of frequency fee, rentals, upfront fee of 3G and BWA licenses, advertising and insurance, are expensed as the related asset is utilized. The non-current portions of prepaid rentals and upfront fee of 3G and BWA licenses are shown as part of Long-term Prepaid Rentals - Net of Current Portion and Long-term Prepaid Licenses - Net of Current Portion, respectively.
g.
Investments in Associated Companies
The Groups investment in its associated company is accounted for using the equity method. An associated company is an entity in which the Group has significant influence. Under the equity method, the cost of investment is increased or decreased by the Groups share in net earnings or losses of, and dividends received from, the associated company since the date of acquisition.
The interim consolidated statement of comprehensive income reflects the share of the results of operations of the associated company. Where there has been a change recognized directly in the equity of the associated company, the Group recognizes its share of any such changes and discloses this, when applicable, in the interim consolidated statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and the associated company are eliminated to the extent of the Groups interest in the associated company.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g.
Investment in Associated Company (continued)
The Group determines whether it is necessary to recognize an additional impairment loss on the Groups investment in its associated company. The Group determines at each reporting date whether there is any objective evidence that the investment in the associated company is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the investment in associated company and its carrying value, and recognizes the amount in profit or loss.
h.
Property and Equipment
The Group has implemented PSAK 16 (Revised 2011), Fixed Assets, which impacts recognition of the assets, the determination of their carrying amounts and the depreciation charges and impairment losses to be recognized in relation to them. The revised PSAK No. 16 also prescribes accounting for land and provides further guidance related to the treatment of certain landrights in Indonesia and the related costs.
Property and equipment are stated at cost (which includes certain capitalized borrowing costs incurred during the construction phase), less accumulated depreciation and impairment in value.
The Group has chosen the cost model for the measurement of its property and equipment. Property and equipment, except land, are depreciated using the straight-line method, based on the estimated useful lives of the assets, as follows:
Years
Buildings
20 to 40
Information technology equipment
3 to 5
Office equipment
3 to 5
Building and leasehold improvements
3 to 25
Vehicles
3 to 5
Cellular technical equipment
8
Transmission and cross-connection equipment
3 to 15
Fixed Wireless Access (FWA) technical equipment
7
Operation and maintenance center and measurement unit
3 to 5
Fixed access network equipment
3 to 10
The residual values, useful lives and methods of depreciation of property and equipment are reviewed and adjusted prospectively, if appropriate, at each financial year end.
Landrights, including the legal costs incurred at initial acquisition of landrights, are stated at cost and not amortized. Specific costs associated with the renewal or extension of land titles are deferred and amortized over the legal term of the landrights or economic life of the land, whichever is shorter.
The cost of maintenance and repairs is charged to income as incurred; significant renewals and betterments which enhance an assets condition on its initial performance are capitalized. When properties are retired or otherwise disposed of, their costs and the related accumulated depreciation are derecognized from the accounts, and any resulting gains or losses are recognized in profit or loss.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
h.
Property and Equipment (continued)
Property and equipment acquired in exchange for a non-monetary asset or for a combination of monetary and non-monetary assets are measured at fair values unless:
(i)
the exchange transaction lacks commercial substance, or
(ii)
the fair value of neither the assets received nor the assets given up can be measured reliably.
The acquired assets are measured this way even if the Group cannot immediately derecognize the assets given up. If the acquired assets cannot be reliably measured at fair value, their value is measured at the carrying amount of the assets given up plus cash consideration.
Properties under construction and installation are stated at cost, which includes borrowing costs.Under PSAK 26 (Revised 2011), Borrowing Costs, all borrowing costs such as interest, finance charges in respect of finance leases recognized in accordance with PSAK 30 (Revised 2011) and foreign exchange differences (estimated quarterly to the extent that they are regarded as an adjustment to interest costs by capping the exchange differences taken as borrowing costs at the amount of borrowing costs on the functional currency equivalent borrowings) that can be attributed to qualifying assets, are capitalized to the cost of properties under construction and installation. Other borrowing costs are recognized as an expense in the period in which they are incurred. Capitalization of borrowing costs ceases when the construction or installation is completed and the constructed or installed asset is ready for its intended use.
i.
Impairment of Non-financial Assets
The Group assesses at each annual reporting period whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset (i.e., an intangible asset with an indefinite useful life, an intangible asset not yet available for use, or goodwill acquired in a business combination) is required, the Group makes an estimate of the assets recoverable amount.
An assets recoverable amount is the higher of the assets CGUs fair value less costs to sell and its value in use, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses of continuing operations are recognized in the interim consolidated statement of comprehensive income as impairment losses. In assessing the value in use, the estimated net future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used to determine the fair value of the asset. These calculations are corroborated by valuation multiples or other available fair value indicators.
Impairment losses of continuing operations, if any, are recognized in profit or loss under expense categories that are consistent with the functions of the impaired assets.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
i.
Impairment of Non-financial Assets (continued)
An assessment is made at each annual reporting period as to whether there is any indication that previously recognized impairment losses recognized for an asset other than goodwill may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss for an asset other than goodwill is reversed only if there has been a change in the assumptions used to determine the assets recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceeds the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior periods. Reversal of an impairment loss is recognized in the interim consolidated statement of comprehensive income. After such a reversal, the depreciation charge on the said asset is adjusted in future periods to allocate the assets revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. Where the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.
In accordance with PSAK 19 (Revised 2010), software that is not an integral part of the related hardware is amortized using the straight-line method over 5 years and assessed for impairment whenever there is indication of impairment. The Company reviews the amortization period and the amortization method for the software at least at each financial year end. Residual value of software is assumed to be zero.
j.
Leases
Effective January 1, 2012, the Group retrospectively implemented PSAK 30 (Revised 2011), Leases.
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date. The arrangement is assessed for whether fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Group as a lessee
A finance lease that transfers to the Group substantially all the risks and benefits incidental to ownership of the leased item, is capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in financing cost in profit or loss.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
j.
Leases (continued)
Group as a lessee (continued)
The current portion of obligations under finance lease is presented as part of Other Current Financial Liabilities.
Operating lease payments are recognized as an operating expense in the interim consolidated statement of comprehensive income on a straight-line basis over the lease term.
Group as a lessor
A lease in which the Group does not transfer substantially all the risks and benefits of the ownership of an asset is classified as an operating lease. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents, if any, are recognized as revenue in the period they are earned.
A lease in which the Group transfers substantially all the risks and benefits of the ownership of an asset is classified as a finance lease. The leased asset is recognized as asset held under a finance lease in the interim consolidated statement of financial position and is presented as a receivable at an amount equal to the net investment in the lease. Selling profit or loss is recognized during the period, in accordance with the policy followed by the Group for outright sales. Costs incurred by the Group in connection with negotiating and arranging a lease are recognized as an expense when the selling profit is recognized.
Sale-and-leaseback transaction
When the Group enters into a sale-and-leaseback transaction, the Group analyzes if the leaseback arrangement meets the criteria of a finance lease or operating lease. Where the classification results in a finance lease, any excess of sales proceeds over the carrying value of the asset sold is deferred and amortized over the lease term. Where the transaction is classified as an operating lease and it is clear that the transaction is established at fair value, any profit or loss is recognized immediately.
k.
Revenue and Expense Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates and Value Added Taxes (VAT). The following specific recognition criteria must also be met before revenue is recognized:
Cellular
Cellular revenues arising from airtime and roaming calls are recognized based on the duration of successful calls made through the Companys cellular network and presented on a gross basis.
For post-paid subscribers, monthly service fees are recognized as the service is provided.
The activation component of starter package sales is deferred and recognized as revenue over the expected average period of the customer relationship. Sales of initial/reload vouchers are recorded as unearned revenue and recognized as revenue upon usage of the airtime or upon expiration of the airtime.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
k.
Revenue and Expense Recognition (continued)
Cellular (continued)
Sales of wireless broadband modems and cellular handsets are recognized upon delivery to the customers.
Revenues from wireless broadband data communications are recognized based on the duration of usage or fixed monthly charges depending on the arrangement with the customers.
Cellular revenues are presented on a net basis, after compensation to value added service providers.
Customer Loyalty Program
The Company operates a customer loyalty program called
Poin Plus Plus
, which allows customers to accumulate points for every reload and payment by the Companys prepaid and post-paid subscribers, respectively. The points can then be redeemed for free telecommunications and non-telecommunications products, subject to a minimum number of points being obtained. Starting July 29, 2011, the
Poin Plus Plus
program has been replaced with the
Indosat Senyum
program. Both programs have similarity in nature and scheme to redeem the points, except that under the new program, the Company no longer includes the subscription period as a variable item in calculating the points.
Customer loyalty credits are accounted for as a separate component of the sales transaction in which they are granted. The Company records a liability at the time of reload and payment by its prepaid and post-paid subscribers, respectively, based on the fair value expected to be incurred to supply products in the future. The consideration received is allocated between the cellular products sold and the points issued, with the consideration allocated to the points equal to their fair value. Fair value of the points issued is deferred and recognized as revenue when the points are redeemed or when the redemption period expires.
Dealer Commissions
Consideration in the form of sales discount given by the Company to a dealer is recognized as a reduction of revenue.
If the Company receives, or will receive, an identifiable benefit in exchange for a consideration given by the Company to a dealer, and the fair value of such benefit can be reasonably estimated, the consideration will be recorded as a marketing expense.
Tower Leasing
Revenue arising from tower leasing classified as an operating lease is recognized on the straight-line basis over the lease term based on the amount stated in the agreement between the Company and the lessee.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
k.
Revenue and Expense Recognition (continued)
MIDI
Internet
Revenues from installation services are deferred and recognized over the expected average period of the customer relationship. Revenues from monthly service fees are recognized as the services are provided. Revenues from usage charges are recognized monthly based on the duration of internet usage or based on the fixed amount of charges, depending on the arrangement with the customers.
Frame Net, World Link and Direct Link
Revenues arising from installation services are deferred and recognized over the expected average period of the customer relationship. Revenues from monthly service fees are recognized as the services are provided.
Satellite Operating Lease
Revenues are recognized on the straight-line basis over the lease term.
Revenues from other MIDI services are recognized when the services are rendered.
Fixed Telecommunications
International Calls
Revenue from outgoing international call traffic is reported on a gross basis.
Fixed Wireless
Fixed wireless revenues arising from usage charges are recognized based on the duration of successful calls made through the Companys fixed network.
For post-paid subscribers, monthly service fees are recognized as the services are provided.
For prepaid subscriber, the activation component of starter package sales is deferred and recognized as revenue over the expected average period of the customer relationship. Sale of initial/reload vouchers is recorded as unearned income and recognized as income upon usage of the airtime or upon expiration of the airtime.
Fixed Line
Revenues from fixed line installations are deferred and recognized over the expected average period of the customer relationship. Revenues from usage charges are recognized based on the duration of successful calls made through the Companys fixed network.
Interconnection Revenue
Revenues from network interconnection with other domestic and international telecommunications carriers are recognized monthly on the basis of the actual recorded traffic for the month.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
k.
Revenue and Expense Recognition (continued)
Agency Relationships
Revenues from an agency relationship are recorded based on the gross amount billed to the customer when the Group acts as a principal in the sale of services.
When the Group acts as an agent and earns commission from the supplier of the service, revenue is recorded based on the net amount retained (the amount paid by the customer less the amount paid to the supplier).
Expenses
Interconnection Expenses
Expenses from network interconnection with other domestic and international telecommunications carriers are accounted for as operating expenses in the period these are incurred.
Other Expenses
Expenses are recognized when incurred.
l.
Personnel Costs
Personnel costs which are directly related to the development, construction and installation of property and equipment are capitalized as part of the cost of such assets.
m.
Pension Plan and Employee Benefits
Pension costs under the Groups defined benefit pension plans are determined by periodic actuarial calculation using the projected-unit-credit method and applying the assumptions on discount rate, expected return on plan assets and annual rate of increase in compensation.
Actuarial gains or losses from post-employment benefits are recognized as income or expense when the net cumulative unrecognized actuarial gains or losses for each individual plan at the end of the previous reporting year exceed the greater of 10% of the present value of the defined benefit obligation or 10% of the fair value of plan assets, at that date. These gains or losses in excess of the 10% corridor are recognized on a straight-line basis over the expected average remaining working lives of the employees. The past service costs from post-employment benefits are recognized as an expense on a straight-line basis over the average period until the benefits become vested. If the benefits have already vested, following the introduction of changes to a pension plan, past service costs are recognized immediately.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
m.
Pension Plan and Employee Benefits (continued)
Actuarial gains or losses and past service costs from other long-term employee benefits are recognized immediately in the interim consolidated statement of comprehensive income within personnel expenses.
The Group recognizes gains or losses on the curtailment of a defined benefit plan when the curtailment occurs (when there is a commitment to make a material reduction in the number of employees covered by a plan or when there is an amendment of the defined benefit plan terms such that a material element of future services to be provided by current employees will no longer qualify for benefits, or will qualify only for reduced benefits). The gain or loss on curtailment comprises any resulting change in the fair value of plan assets, change in the present value of defined benefit obligation and any related actuarial gains or losses and past service cost that had not previously been recognized.
n.
Financial Instruments
The Group has applied PSAK 50 (Revised 2010), Financial Instruments: Presentation, PSAK 55 (Revised 2011), Financial Instruments: Recognition and Measurement, and PSAK 60, Financial Instruments: Disclosures.
PSAK 50 (Revised 2010) contains the requirements for the presentation of financial instruments and identifies the information that should be disclosed. The presentation requirements apply to the classification of financial instruments, from the perspective of the issuer, into financial assets, financial liabilities and equity instruments; the classification of related interest, dividends, losses and gains; and the circumstances in which financial assets and financial liabilities should be offset. This PSAK requires the disclosure of, among others, information about factors that affect the amount, timing and certainty of an entitys future cash flows relating to financial instruments and the accounting policies applied to those instruments.
PSAK 55 (Revised 2011) establishes the principles for recognizing and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. This PSAK provides the definitions and characteristics of derivatives, the categories of financial instruments, recognition and measurement, hedge accounting and determination of hedging relationships, among others.
PSAK 60 requires the disclosures of the significance of financial instruments for financial position and performance; and the nature and extent of risks arising from financial instruments to which the Group is exposed during the period and at the end of the reporting period, and how the entity manages those risks.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
n.
Financial Instruments (continued)
n1.
Financial assets
Initial recognition
Financial assets within the scope of PSAK 55 (Revised 2011) are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or available-for-sale financial assets, as appropriate. The Group determines the classification of its financial assets at initial recognition.
All financial assets are recognized initially at fair value plus transaction costs, except in the case of financial assets which are recorded at fair value through profit or loss.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Group commits to purchase or sell the assets.
The Groups financial assets include cash and cash equivalents, trade and other accounts receivable, due from related parties, derivative assets and other current and non-current financial assets (quoted and unquoted financial instruments).
Subsequent measurement
The subsequent measurement of financial assets depends on their classification as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss.
Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets at fair value through profit or loss are carried in the interim consolidated statement of financial position at fair value, with changes in fair value recognized in profit or loss.
Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognized in the interim consolidated statement of comprehensive income. Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required.
The Groups financial assets classified at fair value through profit or loss consist of derivative assets.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
n.
Financial Instruments (continued)
n1.
Financial assets (continued)
Subsequent measurement (continued)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in profit or loss. The losses arising from impairment are also recognized in profit or loss.
The Groups cash and cash equivalents, trade and other accounts receivable, due from related parties, other current financial assets, finance lease receivables and other non-current financial assets are included in this category.
Held-to-maturity (HTM) investments
Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as HTM when the Group has the positive intention and ability to hold them to maturity. After initial measurement, HTM investments are measured at amortized cost using the EIR method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in profit or loss. The losses arising from impairment are recognized in profit or loss.
The Group did not have any HTM investments as of September 30, 2013 and December 31, 2012 and January 1, 2012/December 31, 2011.
Available-for-sale (AFS) financial assets
AFS financial assets are non-derivative financial assets that are designated as available- for-sale or are not classified in any of the three preceding categories. After initial measurement, AFS financial assets are measured at fair value with unrealized gains or losses recognized in other comprehensive income until the investment is derecognized, at which time the cumulative gain or loss is recognized, or determined to be impaired, and is reclassified from other comprehensive income to profit or loss. Interest earned on AFS financial investments is reported as interest income using the EIR method.
The Group has the following investments classified as AFS:
-
Investments in shares of stock that do not have readily determinable fair value in which the equity interest is less than 20%. These are carried at cost less allowance for impairment.
-
Investments in equity shares that have readily determinable fair value in which the equity interest is less than 20% and which are classified as available-for-sale, are recorded at fair value.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
n.
Financial Instruments (continued)
n2.
Financial liabilities
Initial recognition
Financial liabilities within the scope of PSAK 55 (Revised 2011) are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Group determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, inclusive of directly attributable transaction costs.
The Groups financial liabilities include trade accounts payable, procurement payable, accrued expenses, deposits from customers, obligations under financial lease, loans and bonds payable, due to related parties, derivative liabilities and other current and non-current financial liabilities.
Subsequent measurement
The measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. This category includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by PSAK 55 (Revised 2011). Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. The amortization is included in financing costs in profit or loss.
Gains or losses are recognized in profit or loss when the liabilities are derecognized as well as through the amortization process.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
n.
Financial Instruments (continued)
n3.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the interim consolidated statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.
n4.
Fair value of financial instruments
The fair value of financial instruments that are traded in active market at each reporting date is determined by reference to quoted market prices or dealer price quotations (bid price for long position and ask price for short position), without any deduction for transaction costs. For financial instruments where there is no active market, fair value is determined using valuation techniques. Such techniques may include using recent arms length market transactions, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis, or other valuation models.
Credit risk adjustment
The Company adjusts the price in the more advantageous market to reflect any differences in counterparty credit risk between instruments traded in that market and the ones being valued for financial asset positions. In determining the fair value of financial liability positions, the Company's own credit risk associated with the instrument is taken into account.
n5.
Amortized cost of financial instruments
Amortized cost is computed using the EIR method less any allowance for impairment and principal repayment or reduction. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the EIR.
n6.
Impairment of financial assets
The Group assesses at the end of each reporting period whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that have occurred after the initial recognition of the asset (an incurred loss event) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
n.
Financial Instruments (continued)
n6. Impairment of financial assets (continued)
Financial assets carried at amortized cost
For loans and receivables carried at amortized cost, the Group first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and the group is collectively assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss has occurred, the amount of the loss is measured as the difference between the assets carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial assets original EIR. If a loan or receivable has a variable interest rate, the discount rate for measuring impairment loss is the current EIR.
The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognized in profit or loss. Interest income continues to be accrued on the reduced carrying amount based on the rate of interest used to discount future cash flows for the purpose of measuring impairment loss. Loans and receivables, together with the associated allowance, are written off when there is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Group. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a future write-off is later recovered, the recovery is recognized in profit or loss.
AFS financial assets
In the case of an equity investment classified as an AFS financial asset, objective evidence would include a significant or prolonged decline in the fair value of the investment below its cost.
Where there is objective evidence of impairment, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognized in profit or loss - is recycled from other comprehensive income to profit or loss. Impairment loss on equity investment is not reversed through the profit or loss; increase in its fair value after impairment is recognized in other comprehensive income.
In the case of a debt instrument classified as an AFS financial asset, impairment is assessed based on the same criteria as financial asset carried at amortized cost. Future interest income is based on the reduced carrying amount and is accrued based on the rate of interest used to discount future cash flows for the purpose of measuring impairment loss. Such accrual is recorded as part of the Interest Income account in profit or loss. If, in a subsequent period, the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss is reversed through profit or loss.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
n.
Financial Instruments (continued)
n7.
Derecognition of financial assets and liabilities
Financial assets
A financial asset (or where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when: (1) the rights to receive cash flows from the asset have expired; or (2) the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or has expired.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in profit or loss.
n8.
Derivative financial instruments
The Company enters into and engages in cross currency swaps, interest rate swaps and other permitted instruments, if considered necessary, for the purpose of managing its foreign exchange and interest rate exposures emanating from the Companys loans and bonds payable in foreign currencies. These derivative financial instruments, while providing effective economic hedges of specific interest rate and foreign exchange risks under the Companys financial risk management objectives and policies, do not meet the criteria for hedge accounting as provided in PSAK 55 (Revised 2011) and are initially recognized at fair value on the date the derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in fair value of derivatives during the period, which are entered into as economic hedges that do not qualify for hedge accounting, are taken directly to profit or loss.
Derivative assets and liabilities are presented under current assets and liabilities, respectively. Embedded derivative is presented with the host contract in the interim consolidated statement of financial position which represents an appropriate presentation of overall future cash flows for the instrument taken as a whole.
The net changes in fair value of derivative instruments, swap cost or income, termination cost or income, and settlement of derivative instruments are credited (charged) to Gain (Loss) on Change in Fair Value of Derivatives - Net, which is presented in profit or loss.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
o.
Foreign Currency Transactions and Balances
The Group has applied PSAK 10 (Revised 2010), The Effects of Changes in Foreign Exchange Rates, which describes how to include foreign currency transactions and foreign operations in the financial statements of an entity and translate financial statements into a presentation currency. The Group considers the primary indicators and other indicators in determining its functional currency. If indicators are mixed and the functional currency is not obvious, management uses its judgment to determine the functional currency that most faithfully represents the economic effects of the underlying transactions, events and conditions.
The interim consolidated financial statements are presented in rupiah, which is the Companys functional currency and the Groups presentation currency. Transactions involving foreign currencies are recorded at the rates of exchange prevailing at the time the transactions are made. At interim consolidated statement of financial position date, monetary assets and liabilities denominated in foreign currencies are adjusted to reflect the prevailing exchange rates at such date and the resulting gains or losses are credited or charged to current operations, except for foreign exchange differentials that can be attributed to qualifying assets which are capitalized to properties under construction and installation.
The functional currency of IFB and IIFB is the euro, while that of IPBV, IMBV and ISPL is the U.S. dollar. As at the end of the reporting period, the assets and liabilities of these subsidiaries are translated into the presentation currency of the Company at the spot rate which is the exchange rate prevailing at the end of the reporting period and their statements of comprehensive income are translated at the average exchange rates during the period. The resulting differences arising from the translations of the financial statements of IPBV, IMBV, IFB, IIFB and ISPL are included in other comprehensive income and presented as part of Difference in Foreign Currency Translation in the interim consolidated statement of changes in equity.
For September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, the foreign exchange rates used (in full amounts) were Rp11,613, Rp9,670 and Rp9,068, respectively, per US$1 which are computed by taking the average of the buying and selling rates of bank notes last published by Bank Indonesia for the period / year.
p.
Income Tax
The Group has applied PSAK 46 (Revised 2010), which requires the Group to account for the current and future tax consequences of the future recovery (settlement) of the carrying amount of assets (liabilities) that are recognized in the interim consolidated statement of financial position, and transactions and other events of the current period which are recognized in the interim consolidated statement of comprehensive income. The revised PSAK also requires the Group to present interest and penalties for the underpayment / overpayment of income tax, if any, as part of Income Tax Benefit (Expense) - Current in the interim consolidated statement of comprehensive income.
Current tax expense is provided based on the estimated taxable income for the period. Deferred tax assets and liabilities are recognized for temporary differences between the financial and the tax bases of assets and liabilities at each reporting date. Future tax benefits, such as the carryover of unused tax losses, are also recognized to the extent that realization of such benefits is probable. The tax effects for the period are allocated to current operations, except for the tax effects from transactions which are directly charged or credited to equity.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
p.
Income Tax (continued)
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the period when the assets are realized or the liabilities are settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the interim consolidated statement of financial position date. Changes in the carrying amount of deferred tax assets and liabilities due to a change in tax rates are credited or charged to current operations, except to the extent that they relate to items previously charged or credited to equity.
The Company recognizes deferred tax liabilities and deferred tax assets associated with its investments in subsidiaries, except:
·
In respect of taxable temporary differences, when the timing of the reversals of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
·
In respect of deductible taxable temporary differences, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.
The difference between the financial statement carrying amounts of existing assets and liabilities, and their respective final tax bases are not recognized as deferred tax assets or liabilities.
The amounts of additional tax principal and penalty imposed through a tax assessment letter (SKP) are recognized as expense of the current period in the interim consolidated statement of comprehensive income, unless further settlement is submitted. The amounts of tax principal and penalty imposed through SKP are deferred as long as they meet the asset recognition criteria.
For each of the consolidated entities, the tax effects of temporary differences and tax loss
carryover, which individually are either assets or liabilities, are shown at the applicable net amounts.
q.
Segment Reporting
The Group has applied PSAK 5 (Revised 2009), Operating Segments. This revised PSAK requires disclosures that will enable users of financial statements to evaluate the nature and financial effects of business activities in which the entity engages and the economic environments in which it operates.
A segment is a distinguishable component of the Group that is engaged in providing certain products (business segment), which component is subject to risks and rewards that are different from those of other segments.
Segment revenue, expenses, results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis to that segment. They are determined before intra-group balances and intra-group transactions are eliminated.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r.
Basic and Diluted Earnings (Loss) per Share/ADS
The Group has applied PSAK 56 (Revised 2011), Earnings per Share, which prescribes principles for the determination and presentation of earnings (loss) per share.
The amount of basic and diluted earnings (loss) per share is computed by dividing profit (loss) for the period attributable to owners of the Company by the weighted-average number of shares outstanding during the period.
The amount of basic and diluted earnings (loss) per ADS attributable to owners of the Company is computed by multiplying basic earnings (loss) per share attributable to owners of the Company by 50, which is equal to the number of shares per ADS.
There were no potentially dilutive shares as of September 30, 2013 and 2012.
s.
Transactions with Related Parties
The Group has transactions with related parties as defined under PSAK 7 (Revised 2010), Related Party Disclosures.
The details of the accounts and the significant transactions entered into with related parties are presented in Note 31.
t.
Concession Financial Assets
The Group constructs or upgrades infrastructure (construction or upgrade services) under arrangements to provide public service and operates and maintains that infrastructure (operation services) for a specified period of time. These arrangements may include infrastructure used in a public-to-private service concession arrangement for its entire useful life.
The arrangements are accounted for based on the nature of the consideration. The financial asset model is used when the Group has an unconditional contractual right to receive cash or another financial asset from or at the direction of the grantor for the construction services.
In the financial asset model, the amount due from the grantor meets the definition of a receivable which is measured at fair value. It is subsequently measured at amortized cost. The amount initially recognized plus the cumulative interest on that amount is calculated using the effective interest method.
The consideration received or receivable is allocated by reference to the relative fair values of the services provided, typically a construction component and a service element for operating and maintenance services performed. Revenue from the concession arrangements earned under the financial asset model consists of the (i) fair value of the amount due from the grantor; and (ii) interest income related to the capital investment in the project.
Any asset carried under concession arrangements is derecognized on disposal or when no future economic benefits are expected from its future use or disposal or when the contractual rights to the financial asset expire.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u.
Restatement of Interim Consolidated Financial Statements
Effective January 1, 2012, the Group has retrospectively adopted PSAK 30 (Revised 2011), Leases - Note 2j, ISAK 16, Service Concession Arrangements, and ISAK 22, Service Concession Arrangements: Disclosures.
Leases
Prior to January 1, 2012, there was no requirement to separately evaluate lease agreement that contained land and building elements. Accordingly, the Company accounted for the tower lease arrangement as an operating lease, as it viewed the arrangement as a single package of land and buildings and treated the overall arrangement as a land lease.
Effective January 1, 2012, the Company has applied PSAK 30 (Revised 2011) retrospectively, which requires the Company to assess the classification of land and building elements of tower leasing arrangements separately whether as finance or an operating lease. As a result of the separate assessment made by the Company, taking into consideration comparison of the lease term with the economic life of the assets and comparison of the present value of the minimum lease payments and the fair value of the leased assets, each element might result in different lease classification. Accordingly, the Company determined that the majority of its historical lease transactions, where the Company is the lessee, were finance leases. The main impact of PSAK 30 (Revised 2011) is the recognition of finance lease assets and liabilities on the building element of tower slot leasing arrangements where the Company is the lessee. For the amended lease policy, see Note 2j.
Service Concession
Prior to January 1, 2012, there was no specific guidance on the accounting for service concession arrangement. The Group accounted for this arrangement as an executory contract. The infrastructure assets constructed under this arrangement were accounted for as property and equipment and depreciated over their estimated useful lives.
Effective January 1, 2012, the Group has retrospectively adopted ISAK 16, Service Concession Arrangements, and ISAK 22, Service Concession Arrangements: Disclosures, to account for its concession contract. Under ISAK 16, revenues relating to construction or upgrade services under a service concession arrangement are recognized based on the stage of completion of the work performed. Operation or service revenue is recognized in the period in which the service is provided. When more than one service is provided in the service concession arrangements, the consideration received is allocated by reference to the relative fair value of the services. The infrastructure assets constructed under this arrangement are not recognized as property and equipment because the contractual arrangement does not convey the right to control the use of the public service infrastructure assets to the Group. In its concession contract, the Group has contractual rights to receive considerations from the grantor. The Group recognizes a financial asset in the interim consolidated statement of financial position, in consideration for the services it provides. Such financial asset is recognized in the interim consolidated statement of financial position as a receivable, for the amount of the fair value of the infrastructure on initial recognition and subsequently at amortized cost. The receivable is settled by means of the grantors payments received. The financial income calculated on the basis of the effective interest rate is recognized as interest income.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u.
Restatement of Interim Consolidated Financial Statements (continued)
As a result of the retrospective application of PSAK 30 (Revised 2011), Leases, ISAK 16 Service Concession Arrangements and ISAK 22, Service Concession Arrangements: Disclosures, the following adjustments were made retrospectively to the interim consolidated financial statements for the nine-month period ended September 30, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2012
|
|
|
|
September 30, 2012
|
|
|
|
|
|
(Previously Reported)
|
|
Adjustments
|
|
(Restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cellular
|
|
13,650,482
|
|
(194,951
|
)
|
13,455,531
|
|
|
MIDI
|
|
2,101,364
|
|
(38,683
|
)
|
2,062,681
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES (INCOME)
|
|
|
|
|
|
|
|
|
Cost of services
|
|
6,524,319
|
|
(62,048
|
)
|
6,462,271
|
|
|
Depreciation and amortization
|
|
5,770,403
|
|
15,220
|
|
5,785,623
|
|
|
Marketing
|
|
841,874
|
|
(195,529
|
)
|
646,345
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of towers (including
amortization of deferred gain on sale
and leaseback of towers)
|
|
(2,187,300)
|
|
1,036,520
|
|
(1,150,780)
|
|
|
Gain on foreign exchange - net
|
|
-
|
|
(26,468
|
)
|
(26,468)
|
|
|
Others net
|
|
243,462
|
|
81,831
|
|
325,293
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
79,876
|
|
7,636
|
|
87,512
|
|
|
Financing cost
|
|
(1,468,037)
|
|
(65,868
|
)
|
(1,533,905)
|
|
|
Loss on foreign exchange - net
|
|
(616,326)
|
|
(52,037
|
)
|
(668,363)
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX BENEFIT
|
|
|
|
|
|
|
|
|
Deferred
|
|
28,549
|
|
35,977
|
|
64,526
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT FOR THE PERIOD
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO:
|
|
|
|
|
|
|
|
|
|
Owners of the Company
|
|
1,628,413
|
|
(1,152,698
|
)
|
475,715
|
|
|
|
Non-controlling interests
|
|
72,882
|
|
(4,754
|
)
|
68,128
|
3.
MANAGEMENTS USE OF SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the Groups interim consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the assets or liabilities affected in future periods.
a.
Judgments
In the process of applying the Groups accounting policies, management has made the following judgments, apart from those including estimations and assumptions, which have the most significant effect on the amounts recognized in the interim consolidated financial statements:
·
Determination of functional currency
The currency of each of the entities under the Group is the currency of the primary economic environment in which each entity operates. It is the currency that mainly influences the revenue and cost of rendering services.
·
Leases
The Group has various lease agreements where the Group acts as lessee or lessor in respect of certain asset. The Group evaluates whether significant risks and rewards of ownership of the leased asset are transferred to the lessee or retained by the Group based on PSAK30 (Revised 2011)
,
Leases, which requires the Group to make judgments and estimates of transfer of risks and rewards of ownership of leased asset.
Tower leases
For tower leases, the unit of account is considered at the level of the slot or site space because the lease is dependent on the use of a specific space in the tower where the Company places its equipment.
Licenses
In 2006, the Company was granted a license to use 2.1 GHz radio frequency spectrum (a 3G mobile communications technology - Note 1a) by the MOCIT. The Company was obliged to, among others, pay upfront fee and annual radio frequency fee for 10 years (Note 33l). The upfront fee is recorded as part of Long-term Prepaid Licenses for the non-current portion and Prepaid Expenses for the current portion, and amortized over the 10-year license term using the straight-line method.
In 2009, the Company received additional 3G license (Note 1a), and IMM was granted an operating license for Packet Switched local telecommunications network using 2.3 GHz radio frequency spectrum of Broadband Wireless Access (BWA). The Company and IMM were obliged to, among others, pay upfront fee and annual radio frequency fee for 10 years (Note 33l). The upfront fee is recorded as part of Long-term Prepaid Licenses for the non-current portion and Prepaid Expenses for the current portion, and amortized over the 10-year license term using the straight-line method.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
3.
MANAGEMENTS USE OF SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)
a.
Judgments (continued)
·
Leases (continued)
Licenses (continued)
Management believes, as supported by written confirmation from the DGPT, that the 3G and BWA licenses may be returned at any time without any financial obligation to pay the remaining outstanding annual radio frequency fees (i.e., the license arrangement does not transfer substantially all the risks and rewards incidental to ownership). Accordingly, the Company and IMM recognize the annual radio frequency fee as prepaid operating lease expense, amortized using the straight-line method over the term of the rights to operate the 3G and BWA licenses. Management evaluates its plan to continue to use the licenses on an annual basis.
·
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or CGU exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding sales transactions in arms length transactions of similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the assets performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used for extrapolation purposes.
·
Exchange of asset transactions
During 2010 to 2012, the Group entered into several contracts for exchanging of asset for certain of its existing cellular technical equipment with third party supplier. For the exchange of asset transactions, the Group evaluates whether the transactions contain commercial substance based on PSAK 16 (Revised 2011)
Property, Plant, and Equipment
, which requires the Group to make judgments and estimates of the future cash flow and the fair value of the asset received and given up as a result of the transactions. Management considers the exchange of asset transactions to have met the criteria of commercial substance; however, the fair value of neither the asset received nor the asset given up could be measured reliably, hence, their value was measured at the carrying amount of the asset given up plus cash consideration paid.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
3.
MANAGEMENTS USE OF SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)
a.
Judgments (continued)
·
Sale-and-leaseback transaction
The Group classifies leases into finance leases or operating leases in accordance with the accounting policies stated in Note 2j. Determining whether a lease transaction is a finance lease or an operating lease is a complex issue and requires substantial judgment as to whether the lease agreement transfers substantially all the risks and rewards of ownership to or from the Group. Careful and considered judgment is required on various complex aspects that include, but are not limited to, the fair value of the leased asset, the economic life of the leased asset, whether renewal options are included in the lease term and determining an appropriate discount rate to calculate the present value of the minimum lease payments.
The classification as a finance lease or operating lease determines whether the leased asset is capitalizable and recognized on the interim consolidated statement of financial position. In a sale-and-leaseback transaction, the classification of the leaseback arrangements as described above determines how the gain or loss on the sale transaction is recognized. It is either deferred and amortized (finance lease) or recognized in the consolidated statement of comprehensive income immediately (operating lease).
·
Provision for legal contingency
The Group is currently involved in one significant legal proceeding (Note 33f). Managements judgment of the probable cost for the resolution of the claim has been developed in a consultation with the Companys counsels handling the defense in this matter and is based upon their analysis of potential result. Management currently does not believe this proceeding could materially reduce the Companys revenues and profitability. It is possible, however, that future financial performance could be materially affected by changes in their judgment or effectiveness of their strategy relating to this proceeding.
·
Allowance for impairment of receivables
If there is objective evidence that an impairment loss has been incurred on trade receivables, the Group recognizes an allowance for impairment losses related to its trade receivables that are specifically identified as doubtful for collection.
In addition to specific allowance against individually significant receivables, the Group also assesses a collective impairment allowance against credit exposure of its debtors which are grouped based on common credit characteristics, and although not specifically identified as requiring a specific allowance, have a greater risk of default than when the receivables were originally granted to debtors.
b.
Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below:
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
3.
MANAGEMENTS USE OF SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)
b.
Estimates and Assumptions (continued)
·
Determination of fair values of financial assets and financial liabilities
When the fair value of financial assets and financial liabilities recorded in the interim consolidated statement of financial position cannot be derived from active markets, their fair value is determined using valuation techniques, including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair value. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 21 for further discussion.
·
Estimating useful lives of property and equipment and intangible assets
The Group estimates the useful lives of its property and equipment and intangible assets based on expected asset utilization as anchored on business plans and strategies that also consider expected future technological developments and market behavior. The estimation of the useful lives of property and equipment is based on the Groups collective assessment of industry practice, internal technical evaluation and experience with similar assets. The estimated useful lives are reviewed at least each financial year-end and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limitations on the use of the assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in the factors mentioned above.
The amounts and timing of recorded expenses for any period are affected by changes in these factors and circumstances. A reduction in the estimated useful lives of the Groups property and equipment increases the recorded operating expenses and decreases non-current assets. An extension in the estimated useful lives of the Groups property and equipment decreases the recorded operating expenses and increases non-current assets.
·
Goodwill and intangible assets
The interim consolidated financial statements reflect acquired businesses after the completion of the respective acquisition. The Company accounts for the acquired businesses using the acquisition method starting January 1, 2011 and the purchase method for prior year acquisitions, which requires extensive use of accounting estimates and judgments to allocate the purchase price to the fair market values of the acquirees identifiable assets and liabilities at the acquisition date. Any excess in the purchase price over the estimated fair market values of the net assets acquired is recorded as goodwill in the interim consolidated statement of financial position. Thus, the numerous judgments made in estimating the fair market value to be assigned to the acquirees assets and liabilities can materially affect the Companys financial performance.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
3.
MANAGEMENTS USE OF SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)
b.
Estimates and Assumptions (continued)
·
Recoverability of deferred tax assets
The Group reviews the carrying amounts of deferred tax assets at the end of each reporting period and reduces these to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax assets to be utilized. The Groups assessment on the recognition of deferred tax assets on deductible temporary differences is based on the level and timing of forecasted taxable income of the subsequent reporting periods. This forecast is based on the Groups past results and future expectations on revenues and expenses as well as future tax planning strategies. However, there is no assurance that the Group will generate sufficient taxable income to allow all or part of the deferred tax assets to be utilized.
·
Estimating allowance for impairment loss on receivables
The level of a specific allowance is evaluated by management on the basis of factors that affect the collectibility of the accounts. In these cases, the Group uses judgment based on the best available facts and circumstances including, but not limited to, the length of the Groups relationship with the customers and the customers credit status based on third-party credit reports and known market factors, to record specific reserves for customers against amounts due in order to reduce the Groups receivables to amounts that it expects to collect. These specific reserves are re-evaluated and adjusted as additional information received affects the amounts estimated.
Any collective allowance recognized is based on historical loss experience using various factors such as historical performance of the debtors within the collective group and judgments on the effect of deterioration in the markets in which the debtors operate and identified structural weaknesses or deterioration in the cash flows of debtors.
·
Estimation of pension cost and other employee benefits
The cost of defined benefit plan and present value of the pension obligation are determined using the projected-unit-credit method. Actuarial valuation includes making various assumptions which consist of, among other things, discount rates, expected rates of return on plan assets, rates of compensation increases and mortality rates. Actual results that differ from the Groups assumptions are recognized as income or expense when the net cumulative unrecognized actuarial gains and losses at the end of the previous reporting period exceed 10% of the higher of the present value of defined benefit obligation or the fair value of plan assets at that date. Due to the complexity of the valuation, the underlying assumptions and their long-term nature, a defined benefit obligation is highly sensitive to changes in assumptions.
While the Group believes that its assumptions are reasonable and appropriate, significant differences in the Groups actual experience or significant changes in its assumptions may materially affect the costs and obligations of pension and other long-term employee benefits. All assumptions are reviewed at each reporting date.
Further details about the assumptions used, including a sensitivity analysis, are presented in Note 30.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
3.
MANAGEMENTS USE OF SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS (continued)
b.
Estimates and Assumptions (continued)
·
Asset retirement obligations
Asset retirement obligations are recognized in the period in which they are incurred if a reasonable estimate of fair value can be made. The recognition of the obligations requires an estimation of the cost to restore/dismantle on a per location basis and is based on the best estimate of the expenditure required to settle the obligation at the future restoration/dismantlement date, discounted using a pre-tax rate that reflects the current market assessment of the time value of money and, where appropriate, the risk specific to the liability.
·
Revenue recognition
The Groups revenue recognition policies require making use of estimates and assumptions that may affect the reported amounts of revenues and receivables.
The Companys agreements with domestic and foreign carriers for inbound and outbound traffic subject to settlements require traffic reconciliations before actual settlement is done, which may not be the actual volume of traffic as measured by the Company. Initial recognition of revenues is based on observed traffic adjusted by the normal experience adjustments, which historically are not material to the interim consolidated statement of comprehensive income. Differences between the amounts initially recognized and the actual settlements are taken up in the account upon reconciliation. However, there is no assurance that the use of such estimates will not result in material adjustments in future periods.
The Group recognizes revenues from installation and activation-related fees and the corresponding costs over the expected average periods of customer relationship for cellular, MIDI and fixed telecommunications services. The Group estimates the expected average period of customer relationship based on the most recent churn-rate analysis.
·
Uncertain tax exposure
In certain circumstances, the Group may not be able to determine the exact amount of its current or future tax liabilities due to ongoing investigations by, or discussions with, the taxation authority. Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. In determining the amount to be recognized in respect of an uncertain tax liability, the Group applies similar considerations as it would use in determining the amount of a provision to be recognized in accordance with PSAK 57 (Revised 2009),
Provisions, Contingent Liabilities and Contingent Assets.
The Group makes an analysis of all tax positions related to income taxes to determine if a tax liability for uncertain tax benefit should be recognized.
As of September 30, 2013, the Company is subject to tax audit for fiscal year 2012.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
4.
CASH AND CASH EQUIVALENTS
This account consists of the following:
|
|
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Cash on hand
|
|
|
|
|
|
|
|
Rupiah
|
1,484
|
|
1,837
|
|
1,465
|
|
|
U.S. dollar (US$14 in 2013 and US$13 in 2011)
|
163
|
|
-
|
|
115
|
|
|
|
|
|
|
|
1,647
|
|
1,837
|
|
1,580
|
|
Cash in banks
|
|
|
|
|
|
|
|
Related parties (Note 31)
|
|
|
|
|
|
|
|
|
Rupiah
|
|
|
|
|
|
|
|
|
|
PT Bank Mandiri (Persero) Tbk ("Mandiri")
|
86,879
|
|
74,373
|
|
45,441
|
|
|
|
|
PT Bank Negara Indonesia (Persero) Tbk ("BNI")
|
3,612
|
|
1,279
|
|
3,022
|
|
|
|
|
PT Bank Pembangunan Daerah Sumatera Barat
(BPD - Sumbar)
|
1,866
|
|
2
|
|
-
|
|
|
|
|
PT Bank Pembangunan Daerah Jawa Barat dan
Banten Tbk (BPD - Jawa Barat)
|
1,529
|
|
132
|
|
605
|
|
|
|
|
PT Bank Pembangunan Daerah DKI Jakarta
|
1,316
|
|
2,996
|
|
1,110
|
|
|
|
|
PT Bank Pembangunan Daerah Nusa Tenggara
Timur
|
638
|
|
1,234
|
|
1,033
|
|
|
|
|
PT Bank Pembangunan Daerah Yogyakarta
(BPD - Yogyakarta)
|
513
|
|
685
|
|
1,473
|
|
|
|
|
PT Bank Pembangunan Daerah Sumatera Selatan
|
314
|
|
2,231
|
|
-
|
|
|
|
|
PT Bank Tabungan Negara (Persero) Tbk ("BTN")
|
161
|
|
1,924
|
|
500
|
|
|
|
|
PT Bank Rakyat Indonesia (Persero) Tbk ("BRI")
|
86
|
|
1,178
|
|
1,409
|
|
|
|
|
PT Bank Pembangunan Daerah Jawa Timur
|
18
|
|
1,326
|
|
743
|
|
|
|
|
PT Bank Pembangunan Daerah Sumatera Utara
|
12
|
|
12
|
|
1,134
|
|
|
|
|
Others (each below Rp1,000)
|
933
|
|
1,706
|
|
2,904
|
|
|
|
U.S dollar
|
|
|
|
|
|
|
|
|
|
Mandiri (US$7,154 in 2013, US$2,746 in 2012 and
|
|
|
|
|
|
|
|
|
|
|
US$3,793 in 2011)
|
83,078
|
|
26,557
|
|
34,397
|
|
|
|
|
Others (US$6 in 2013, US$8 in 2012 and
|
|
|
|
|
|
|
|
|
|
|
US$12 in 2011)
|
59
|
|
72
|
|
109
|
|
|
Third parties
|
|
|
|
|
|
|
|
|
Rupiah
|
|
|
|
|
|
|
|
|
|
PT Bank Central Asia Tbk ("BCA")
|
82,744
|
|
159,969
|
|
13,247
|
|
|
|
|
PT Bank CIMB Niaga Tbk ("CIMB Niaga")
|
11,154
|
|
17,678
|
|
4,828
|
|
|
|
|
Hongkong and Shanghai Banking Corporation,
Jakarta Branch (HSBC)
|
1,141
|
|
14,076
|
|
2,414
|
|
|
|
|
Citibank N.A., Jakarta Branch ("Citibank")
|
910
|
|
3,429
|
|
52,768
|
|
|
|
|
Others (each below Rp5,000)
|
11,651
|
|
11,163
|
|
13,787
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
4.
CASH AND CASH EQUIVALENTS (continued)
|
|
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Cash in banks (continued)
|
|
|
|
|
|
|
|
Third parties (continued)
|
|
|
|
|
|
|
|
|
U.S. dollar
|
|
|
|
|
|
|
|
|
|
Fortis Bank N.V., The Netherlands
|
|
|
|
|
|
|
|
|
|
|
(US$9,670 in 2013, US$5,258 in 2012
|
|
|
|
|
|
|
|
|
|
|
and US$6,220 in 2011)
|
112,301
|
|
50,846
|
|
56,405
|
|
|
|
|
Citibank N.A., Singapore Branch
|
|
|
|
|
|
|
|
|
|
|
(US$3,236 in 2013, US$3,411 in 2012
|
|
|
|
|
|
|
|
|
|
|
and US$5,256 in 2011)
|
37,581
|
|
32,983
|
|
47,660
|
|
|
|
|
Citibank (US$2,430 in 2013, US$801 in 2012 and
|
|
|
|
|
|
|
|
|
|
|
US$790 in 2011)
|
28,225
|
|
7,750
|
|
7,164
|
|
|
|
|
CIMB Niaga (US$221 in 2013, US$25 in 2012 and
|
|
|
|
|
|
|
|
|
|
|
US$697 in 2011)
|
2,564
|
|
243
|
|
6,323
|
|
|
|
|
Deutsche Bank AG , Jakarta Branch (DB) (US$37 in
2013, US$728 in 2012 and US$305 in 2011)
|
426
|
|
7,042
|
|
2,763
|
|
|
|
|
HSBC (US$4 in 2013, US$14 in 2012 and
|
|
|
|
|
|
|
|
|
|
|
US$151 in 2011)
|
46
|
|
132
|
|
1,369
|
|
|
|
|
Others (US$341 in 2013, US$95 in 2012
|
|
|
|
|
|
|
|
|
|
|
and US$87 in 2011)
|
3,956
|
|
914
|
|
791
|
|
|
|
|
|
|
473,713
|
|
421,932
|
|
303,399
|
|
|
Time deposit and deposits on call
|
|
|
|
|
|
|
|
|
Related parties (Note 31)
|
|
|
|
|
|
|
|
|
|
Rupiah
|
|
|
|
|
|
|
|
|
|
|
Mandiri
|
163,700
|
|
198,800
|
|
245,820
|
|
|
|
|
|
BTN
|
153,575
|
|
169,372
|
|
180,400
|
|
|
|
|
|
BNI
|
135,755
|
|
138,320
|
|
143,720
|
|
|
|
|
|
BRI
|
75,000
|
|
71,500
|
|
145,000
|
|
|
|
|
|
BPD - Jawa Barat
|
31,500
|
|
34,850
|
|
24,850
|
|
|
|
|
|
PT Bank Jawa Barat Banten Syariah
|
30,000
|
|
10,000
|
|
-
|
|
|
|
|
|
PT Bank BRI Syariah
|
22,500
|
|
47,500
|
|
7,500
|
|
|
|
|
|
Mandiri Syariah
|
12,000
|
|
34,000
|
|
35,000
|
|
|
|
|
|
BPD - Sumbar
|
10,000
|
|
10,000
|
|
-
|
|
|
|
|
|
BPD - Yogyakarta
|
1,000
|
|
1,000
|
|
1,000
|
|
|
|
|
|
PT Bank Pembangunan Daerah Sulawesi Selatan
|
1,000
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. dollar
|
|
|
|
|
|
|
|
|
|
|
Mandiri Syariah (US$5,000 in 2013 and US$3,000
in 2011)
|
58,065
|
|
-
|
|
27,204
|
|
|
|
|
|
Mandiri (US$2,401 in 2013, US$2,701 in 2012
|
|
|
|
|
|
|
|
|
|
|
|
and US$3,040 in 2011)
|
27,884
|
|
26,119
|
|
27,566
|
|
|
|
|
|
BRI (US$60,000 in 2012 and US$5,000 in 2011)
|
-
|
|
580,200
|
|
45,340
|
|
|
|
|
|
PT Bank QNB Kesawan Tbk (QNBK)
(US$10,000)
|
-
|
|
96,700
|
|
-
|
|
|
|
|
|
BPD - Jawa Barat (US$75)
|
-
|
|
-
|
|
680
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
4.
CASH AND CASH EQUIVALENTS (continued)
|
|
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Time deposit and deposits on call (continued)
|
|
|
|
|
|
|
|
Third parties
|
|
|
|
|
|
|
|
|
Rupiah
|
|
|
|
|
|
|
|
|
|
PT Bank Tabungan Pensiunan Nasional Tbk
|
180,500
|
|
82,500
|
|
34,500
|
|
|
|
|
PT Bank Bukopin Tbk
|
134,500
|
|
88,500
|
|
27,500
|
|
|
|
|
PT Bank Syariah Muamalat Indonesia Tbk (Muamalat)
|
56,000
|
|
96,800
|
|
249,894
|
|
|
|
|
PT Bank Saudara Tbk
|
|
|
|
|
|
|
|
|
|
(previously PT Bank Himpunan Saudara 1906 Tbk)
|
47,000
|
|
48,000
|
|
32,100
|
|
|
|
|
PT Bank Mega Syariah
|
38,500
|
|
25,500
|
|
17,750
|
|
|
|
|
DB
|
33,493
|
|
42,485
|
|
79,354
|
|
|
|
|
CIMB Niaga (including CIMB Niaga Syariah)
|
30,000
|
|
4,000
|
|
55,000
|
|
|
|
|
PT Bank ICB Bumiputera Tbk
|
11,500
|
|
11,500
|
|
9,500
|
|
|
|
|
PT Bank Mega Tbk
|
10,250
|
|
27,250
|
|
5,000
|
|
|
|
|
PT Bank Panin Tbk
|
10,000
|
|
-
|
|
-
|
|
|
|
|
Citibank
|
9,425
|
|
50,000
|
|
-
|
|
|
|
|
PT Bank Internasional Indonesia (BII) (including BII Syariah)
|
9,100
|
|
13,500
|
|
12,500
|
|
|
|
|
PT Bank Danamon Indonesia Tbk
|
2,000
|
|
2,000
|
|
33,000
|
|
|
|
|
BCA
|
-
|
|
-
|
|
200,000
|
|
|
|
|
PT Bank DBS Indonesia (DBS)
|
-
|
|
-
|
|
50,000
|
|
|
|
|
Others (each below Rp5,000)
|
2,500
|
|
2,100
|
|
3,100
|
|
|
|
U.S. dollar
|
|
|
|
|
|
|
|
|
|
DB (US$37,738 in 2013, US$19,752 in 2012 and
|
|
|
|
|
|
|
|
|
|
|
US$17,917 in 2011)
|
438,256
|
|
191,005
|
|
162,473
|
|
|
|
|
Permata Syariah (US$5,000 in 2013
|
|
|
|
|
|
|
|
|
|
|
and US$15,000 in 2012)
|
58,065
|
|
145,050
|
|
-
|
|
|
|
|
Muamalat (US$2,500 in 2013 and
US$7,000 in 2011)
|
29,033
|
|
-
|
|
63,476
|
|
|
|
|
CIMB Niaga (US$1,000 in 2013 and
|
|
|
|
|
|
|
|
|
|
|
US$50,000 in 2012)
|
11,613
|
|
483,500
|
|
-
|
|
|
|
|
DBS (US$55,000)
|
-
|
|
531,850
|
|
-
|
|
|
|
|
PT Bank UOB Buana Indonesia (US$15,000 )
|
-
|
|
145,050
|
|
-
|
|
|
|
|
Fortis Bank N.V., The Netherlands (US$3,740)
|
-
|
|
36,166
|
|
-
|
|
|
|
|
Standard Chartered Bank, Jakarta Branch
(Standchart) (US$5,000)
|
-
|
|
48,350
|
|
-
|
|
|
|
|
|
|
1,833,714
|
|
3,493,467
|
|
1,919,227
|
|
|
|
|
Total
|
2,309,074
|
|
3,917,236
|
|
2,224,206
|
Time deposits and deposits on call denominated in rupiah earned interest at annual rates ranging from 2.00% to 9.50% in 2013, from 2.00% to 9.50% in 2012 and from 2.50% to 9.75% in 2011, while those denominated in U.S. dollar earned interest at annual rates ranging from 0.03% to 3.25% in 2013, from 0.01% to 3.00% in 2012 and from 0.01% to 2.75% in 2011.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
5.
ACCOUNTS RECEIVABLE - TRADE
This account consists of the following:
|
|
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related parties (Note 31)
|
|
|
|
|
|
|
|
Telkom (including US$436 in 2012 and
|
|
|
|
|
|
|
|
|
US$51 in 2011)
|
101,152
|
|
73,835
|
|
19,977
|
|
|
Others (including US$5,714 in 2013, US$7,318
|
|
|
|
|
|
|
|
|
in 2012 and US$8,085 in 2011)
|
680,694
|
|
543,447
|
|
345,373
|
|
|
Sub-total
|
781,846
|
|
617,282
|
|
365,350
|
|
|
Less allowance for impairment
|
22,382
|
|
42,632
|
|
47,107
|
|
|
Net
|
759,464
|
|
574,650
|
|
318,243
|
|
Third parties
|
|
|
|
|
|
|
|
Local companies (including US$33,773 in 2013,
|
|
|
|
|
|
|
|
|
US$24,583 in 2012 and US$16,593 in 2011)
|
1,119,575
|
|
902,013
|
|
791,178
|
|
|
Overseas international carriers (US$81,926
|
|
|
|
|
|
|
|
|
in 2013, US$79,275 in 2012 and
|
|
|
|
|
|
|
|
|
US$66,532 in 2011)
|
951,407
|
|
766,070
|
|
603,309
|
|
|
Post-paid subscribers from:
|
|
|
|
|
|
|
|
|
Cellular
|
299,860
|
|
297,721
|
|
254,565
|
|
|
|
Fixed telecommunications
|
59,885
|
|
20,263
|
|
22,345
|
|
|
Sub-total
|
2,430,727
|
|
1,986,067
|
|
1,671,397
|
|
|
Less allowance for impairment
|
465,670
|
|
521,998
|
|
489,544
|
|
|
Net
|
1,965,057
|
|
1,464,069
|
|
1,181,853
|
|
Total
|
2,724,521
|
|
2,038,719
|
|
1,500,096
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
5.
ACCOUNTS RECEIVABLE - TRADE (continued)
The aging schedule of the accounts receivable - trade is as follows:
|
|
|
September 30,
|
|
December 31,
|
|
January 1, 2012 /
|
|
|
|
2013
|
|
2012
|
|
December 31, 2011
|
|
Number of
|
|
|
|
Percentage
|
|
|
|
Percentage
|
|
|
|
Percentage
|
|
Months Outstanding
|
|
Amount
|
|
(%)
|
|
Amount
|
|
(%)
|
|
Amount
|
|
(%)
|
|
Related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 - 6 months
|
|
719,290
|
|
92.00
|
|
477,272
|
|
77.32
|
|
257,348
|
|
70.44
|
|
7 - 12 months
|
|
18,978
|
|
2.43
|
|
52,246
|
|
8.46
|
|
35,252
|
|
9.65
|
|
13 - 24 months
|
|
6,605
|
|
0.84
|
|
30,390
|
|
4.92
|
|
64,498
|
|
17.65
|
|
Over 24 months
|
|
36,973
|
|
4.73
|
|
57,374
|
|
9.30
|
|
8,252
|
|
2.26
|
|
Total
|
|
781,846
|
|
100.00
|
|
617,282
|
|
100.00
|
|
365,350
|
|
100.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 - 6 months
|
|
1,488,330
|
|
61.23
|
|
1,036,438
|
|
52.19
|
|
945,410
|
|
56.56
|
|
7 - 12 months
|
|
282,078
|
|
11.61
|
|
235,844
|
|
11.87
|
|
208,218
|
|
12.46
|
|
13 - 24 months
|
|
289,320
|
|
11.90
|
|
259,715
|
|
13.08
|
|
255,648
|
|
15.30
|
|
Over 24 months
|
|
370,999
|
|
15.26
|
|
454,070
|
|
22.86
|
|
262,121
|
|
15.68
|
|
Total
|
|
2,430,727
|
|
100.00
|
|
1,986,067
|
|
100.00
|
|
1,671,397
|
|
100.00
|
The changes in the allowance for impairment of accounts receivable - trade are as follows:
|
|
|
|
|
Related
|
|
Third
|
|
|
|
Total
|
|
Parties
|
|
Parties
|
|
September 30, 2013 (Nine Months)
|
|
|
|
|
|
|
Balance at beginning of period
|
564,630
|
|
42,632
|
|
521,998
|
|
Provision (reversal) - net (Note 27)
|
72,941
|
|
(7,540)
|
|
80,481
|
|
Net effect of foreign exchange adjustment
|
17,879
|
|
507
|
|
17,372
|
|
Write-offs
|
(167,398)
|
|
(13,217)
|
|
(154,181)
|
|
Balance at end of period
|
488,052
|
|
22,382
|
|
465,670
|
|
|
|
|
|
|
|
|
|
Individual impairment
|
108,026
|
|
17,810
|
|
90,216
|
|
Collective impairment
|
380,026
|
|
4,572
|
|
375,454
|
|
Total
|
488,052
|
|
22,382
|
|
465,670
|
|
|
|
|
|
|
|
|
|
Gross amount of receivables, individually impaired
|
|
|
|
|
|
|
|
before deducting any individually assessed
|
|
|
|
|
|
|
|
impairment allowance
|
486,820
|
|
142,966
|
|
343,854
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
5.
ACCOUNTS RECEIVABLE - TRADE (continued)
The changes in the allowance for impairment of accounts receivable - trade are as follows (continued):
|
|
Total
|
|
Related
Parties
|
|
Third
Parties
|
|
December 31, 2012 (One Year)
|
|
|
|
|
|
|
Balance at beginning of year
|
536,651
|
|
47,107
|
|
489,544
|
|
Provision (reversal) - net
|
56,163
|
|
(6,567)
|
|
62,730
|
|
Net effect of foreign exchange adjustment
|
7,802
|
|
2,092
|
|
5,710
|
|
Write-offs
|
(35,986)
|
|
-
|
|
(35,986)
|
|
Balance at the end of year
|
564,630
|
|
42,632
|
|
521,998
|
|
|
|
|
|
|
|
|
|
Individual impairment
|
208,208
|
|
37,852
|
|
170,356
|
|
Collective impairment
|
356,422
|
|
4,780
|
|
351,642
|
|
Total
|
564,630
|
|
42,632
|
|
521,998
|
|
|
|
|
|
|
|
|
|
Gross amount of receivables, individually impaired,
|
|
|
|
|
|
|
|
before deducting any individually assessed
|
|
|
|
|
|
|
|
impairment allowance
|
341,363
|
|
111,124
|
|
230,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related
|
|
Third
|
|
|
|
Total
|
|
Parties
|
|
Parties
|
|
January 1, 2012 / December 31, 2011 (One Year)
|
|
|
|
|
|
|
Balance at beginning of year
|
496,110
|
|
47,640
|
|
448,470
|
|
Provision (reversal) - net
|
41,051
|
|
(1,509)
|
|
42,560
|
|
Net effect of foreign exchange adjustment
|
105
|
|
976
|
|
(871)
|
|
Write-offs
|
(615)
|
|
-
|
|
(615)
|
|
Balance at end of year
|
536,651
|
|
47,107
|
|
489,544
|
|
|
|
|
|
|
|
|
|
Individual impairment
|
189,486
|
|
44,086
|
|
145,400
|
|
Collective impairment
|
347,165
|
|
3,021
|
|
344,144
|
|
Total
|
536,651
|
|
47,107
|
|
489,544
|
|
|
|
|
|
|
|
|
|
Gross amount of receivables, individually impaired,
|
|
|
|
|
|
|
|
before deducting any individually assessed
|
|
|
|
|
|
|
|
impairment allowance
|
309,556
|
|
117,572
|
|
191,984
|
The net effect of foreign exchange adjustment was due to the strengthening or weakening of the rupiah vis-à-vis the U.S. dollar in relation to U.S. dollar accounts previously provided with allowance and was credited or charged to Gainon Foreign Exchange - Net presented under Expenses (Income).
There are no significant concentrations of credit risk.
Management believes the established allowance is sufficient to cover impairment losses from uncollectible accounts receivable.
6.
PREPAID TAXES
This account consists of the following:
|
|
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VAT - net
|
257,681
|
|
124,642
|
|
29,677
|
|
Claims for tax refund
|
81,165
|
|
167,216
|
|
-
|
|
Others
|
3,305
|
|
2,485
|
|
1,018
|
|
Total
|
342,151
|
|
294,343
|
|
30,695
|
On May 5, 2011, the Company submitted an appeal letter to the Tax Court concerning the Companys request for cancellation of Tax Collection Letters (STPs) for the underpayment of the Companys 2008 and 2009 income tax article 26 totalling Rp80,018 (including interest). On July 30, 2012, the Company received the Tax Courts Decision Letter which accepted the Companys appeal concerning these STPs. On September 11, 2012, the Company submitted a request for restitution to the Tax Office to transfer the tax overpayment related to these STPs. On December 26, 2012, the Company received a copy of a Memorandum for Reconsideration Request
(Memori Permohonan Peninjauan Kembali)
from the Tax Court to the Supreme Court on the Tax Courts Decision Letter dated July 30, 2012 for the underpayment of the Companys 2008 and 2009 income tax article 26. On February 6, 2013, the Company submitted a Counter-Memorandum Requesting for a Reconsideration to the Supreme Court. As of October 24, 2013, the restitution and decision from the Supreme Court on such request have not yet been received.
On October 12, 2010, the Company submitted appeal letters to the Tax Court concerning the Companys objection to the correction of Satelindos 2002 and 2003 income tax article 26. On November 6, 2012, the Company received the Decision Letter from the Tax Court which accepted the Companys appeal on Satelindos 2002 and 2003 income tax article 26 amounting to Rp87,198, which is lower than the amount recognized by the Company in its financial statements. The Company accepted the correction amounting to Rp4,655, which was charged to current operations as part of Expenses - Others - Net. On January 28, 2013, the Company received the restitution.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
7.
OTHER CURRENT FINANCIAL ASSETS
This account consists of the following:
|
|
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term investments*
|
-
|
|
25,395
|
|
25,395
|
|
Less allowance for impairment
|
-
|
|
25,395
|
|
25,395
|
|
Net
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash and cash equivalents (including
|
|
|
|
|
|
|
|
US$378 in 2013, US$231 in 2012 and
|
|
|
|
|
|
|
|
US$168 in 2011)
|
6,639
|
|
5,483
|
|
18,830
|
|
Others (including US$6 in 2013, US$257 in 2012 and
|
|
|
US$10 in 2011)
|
11,941
|
|
7,899
|
|
5,960
|
|
Total
|
18,580
|
|
13,382
|
|
24,790
|
|
|
|
|
|
|
|
|
|
|
|
|
*The Company wrote off the short-term investment in mutual funds in PT Jakarta Asset Management in April 2013 based on the approval from the Board of Commissionersdated April 16, 2013.
|
.
|
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
8.
PROPERTY AND EQUIPMENT
The details of property and equipment are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013 (Nine Months)
|
|
|
|
|
Balance
|
|
|
|
|
|
|
|
Balance
|
|
|
|
|
at Beginning
|
|
Transactions during the Period
|
|
at End
|
|
|
|
|
of Period
|
|
Additions
|
|
Derecognitions
|
|
Reclassifications
|
|
of Period
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
Direct ownership
|
|
|
|
|
|
|
|
|
|
|
Landrights
|
545,499
|
|
1,573
|
|
-
|
|
-
|
|
547,072
|
|
Buildings
|
871,174
|
|
1,448
|
|
-
|
|
-
|
|
872,622
|
|
Information technology equipment
|
3,649,793
|
|
-
|
|
(6,286)
|
|
435,522
|
|
4,079,029
|
|
Office equipment
|
1,213,413
|
|
29,267
|
|
(7,474)
|
|
116
|
|
1,235,322
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements
|
10,413,096
|
|
-
|
|
(81,939)
|
|
338,445
|
|
10,669,602
|
|
Vehicles
|
22,637
|
|
-
|
|
(4,264)
|
|
-
|
|
18,373
|
|
Cellular technical equipment
|
39,953,889
|
|
57,069
|
|
(391,540)
|
|
2,572,871
|
|
42,192,289
|
|
Transmission and cross-
|
|
|
|
|
|
|
|
|
|
|
|
connection equipment
|
21,164,810
|
|
106,659
|
|
(216,577)
|
|
933,034
|
|
21,987,926
|
|
FWA technical equipment
|
1,345,306
|
|
-
|
|
-
|
|
-
|
|
1,345,306
|
|
Operation and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
center and measurement unit
|
1,478,308
|
|
-
|
|
-
|
|
16,648
|
|
1,494,956
|
|
Fixed access network
|
|
|
|
|
|
|
|
|
|
|
|
equipment
|
1,190,936
|
|
-
|
|
-
|
|
11,557
|
|
1,202,493
|
|
Properties under
|
|
|
|
|
|
|
|
|
|
|
|
construction and
|
|
|
|
|
|
|
|
|
|
|
|
installation
|
2,966,461
|
|
7,039,942
|
|
-
|
|
(4,308,193)
|
|
5,698,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under finance lease
|
|
|
|
|
|
|
|
|
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements (Note 2j)
|
3,551,653
|
|
215,119
|
|
-
|
|
-
|
|
3,766,772
|
|
Information technology equipment
|
50,670
|
|
-
|
|
-
|
|
-
|
|
50,670
|
|
Total
|
88,417,645
|
|
7,451,077
|
|
(708,080)
|
|
-
|
|
95,160,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Depreciation
|
|
|
|
|
|
|
|
|
|
|
Direct ownership
|
|
|
|
|
|
|
|
|
|
|
Buildings
|
365,694
|
|
13,177
|
|
-
|
|
-
|
|
378,871
|
|
Information technology
|
|
|
|
|
|
|
|
|
|
|
|
equipment
|
3,039,529
|
|
268,351
|
|
(6,286)
|
|
-
|
|
3,301,594
|
|
Office equipment
|
977,644
|
|
32,034
|
|
(7,474)
|
|
-
|
|
1,002,204
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements
|
5,296,960
|
|
597,123
|
|
(81,938)
|
|
-
|
|
5,812,145
|
|
Vehicles
|
19,154
|
|
925
|
|
(4,090)
|
|
-
|
|
15,989
|
|
Cellular technical equipment
|
21,851,774
|
|
3,634,416
|
|
(334,472)
|
|
-
|
|
25,151,718
|
|
Transmission and cross-
|
|
|
|
|
|
|
|
|
|
|
|
connection equipment
|
11,231,139
|
|
1,438,187
|
|
(75,354)
|
|
-
|
|
12,593,972
|
|
FWA technical equipment
|
931,908
|
|
197,318
|
|
-
|
|
-
|
|
1,129,226
|
|
Operation and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
center and measurement unit
|
1,301,739
|
|
50,476
|
|
-
|
|
-
|
|
1,352,215
|
|
Fixed access network equipment
|
975,151
|
|
43,353
|
|
-
|
|
-
|
|
1,018,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under finance lease
|
|
|
|
|
|
|
|
|
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements (Note 2j)
|
363,549
|
|
316,344
|
|
-
|
|
-
|
|
679,893
|
|
Total
|
46,354,241
|
|
6,591,704
|
|
(509,614)
|
|
-
|
|
52,436,331
|
|
Less Impairment in Value
|
98,611
|
|
-
|
|
-
|
|
-
|
|
98,611
|
|
Net Book Value
|
41,964,793
|
|
|
|
|
|
|
|
42,625,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
8.
PROPERTY AND EQUIPMENT (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012 (One Year)
|
|
|
|
|
Balance
|
|
|
|
|
|
|
|
Balance
|
|
|
|
|
at Beginning
|
|
Transactions during the Year
|
|
at End
|
|
|
|
|
of Year
|
|
Additions
|
|
Derecognitions
|
|
Reclassifications
|
|
of Year
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
Direct ownership
|
|
|
|
|
|
|
|
|
|
|
Landrights
|
543,062
|
|
2,437
|
|
-
|
|
-
|
|
545,499
|
|
Buildings
|
867,712
|
|
-
|
|
-
|
|
3,462
|
|
871,174
|
|
Information technology equipment
|
3,395,355
|
|
66
|
|
-
|
|
254,372
|
|
3,649,793
|
|
Office equipment
|
1,242,130
|
|
7,958
|
|
(36,963)
|
|
288
|
|
1,213,413
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements
|
12,213,728
|
|
-
|
|
(2,386,031)
|
|
585,399
|
|
10,413,096
|
|
Vehicles
|
23,794
|
|
2,597
|
|
(3,754)
|
|
-
|
|
22,637
|
|
Cellular technical equipment
|
37,413,004
|
|
273,665
|
|
(585,293)
|
|
2,852,513
|
|
39,953,889
|
|
Transmission and cross-
|
|
|
|
|
|
|
|
|
|
|
|
connection equipment
|
19,684,883
|
|
186,914
|
|
(77)
|
|
1,293,090
|
|
21,164,810
|
|
FWA technical equipment
|
1,345,306
|
|
-
|
|
-
|
|
-
|
|
1,345,306
|
|
Operation and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
center and measurement unit
|
1,452,593
|
|
-
|
|
-
|
|
25,715
|
|
1,478,308
|
|
Fixed access network
|
|
|
|
|
|
|
|
|
|
|
|
equipment
|
1,167,401
|
|
-
|
|
-
|
|
23,535
|
|
1,190,936
|
|
Properties under
|
|
|
|
|
|
|
|
|
|
|
|
construction and
|
|
|
|
|
|
|
|
|
|
|
|
installation
|
2,808,976
|
|
5,195,859
*
|
|
-
|
|
(5,038,374)
|
|
2,966,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under finance lease
|
|
|
|
|
|
|
|
|
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements (Note 2j)
|
898,293
|
|
2,653,360
|
|
-
|
|
-
|
|
3,551,653
|
|
Information technology equipment
|
-
|
|
50,670
|
|
-
|
|
-
|
|
50,670
|
|
Total
|
83,056,237
|
|
8,373,526
|
|
(3,012,118)
|
|
-
|
|
88,417,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Depreciation
|
|
|
|
|
|
|
|
|
|
|
Direct ownership
|
|
|
|
|
|
|
|
|
|
|
Buildings
|
348,244
|
|
17,450
|
|
-
|
|
-
|
|
365,694
|
|
Information technology
|
|
|
|
|
|
|
|
|
|
|
|
equipment
|
2,718,609
|
|
320,920
|
|
-
|
|
-
|
|
3,039,529
|
|
Office equipment
|
972,372
|
|
41,868
|
|
(36,596)
|
|
-
|
|
977,644
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements
|
5,443,328
|
|
856,369
|
|
(1,002,737)
|
|
-
|
|
5,296,960
|
|
Vehicles
|
20,431
|
|
1,977
|
|
(3,254)
|
|
-
|
|
19,154
|
|
Cellular technical equipment
|
17,535,524
|
|
4,627,878
|
|
(311,628)
|
|
-
|
|
21,851,774
|
|
Transmission and cross-
|
|
|
|
|
|
|
|
|
|
|
|
connection equipment
|
9,479,255
|
|
1,751,961
|
|
(77)
|
|
-
|
|
11,231,139
|
|
FWA technical equipment
|
657,696
|
|
274,212
|
|
-
|
|
-
|
|
931,908
|
|
Operation and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
center and measurement unit
|
1,219,365
|
|
82,374
|
|
-
|
|
-
|
|
1,301,739
|
|
Fixed access network equipment
|
909,355
|
|
65,796
|
|
-
|
|
-
|
|
975,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under finance lease
|
|
|
|
|
|
|
|
|
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements (Note 2j)
|
147,749
|
|
215,800
|
|
-
|
|
-
|
|
363,549
|
|
Total
|
39,451,928
|
|
8,256,605
|
|
(1,354,292)
|
|
-
|
|
46,354,241
|
|
Less Impairment in Value
|
98,611
|
|
-
|
|
-
|
|
-
|
|
98,611
|
|
Net Book Value
|
43,505,698
|
|
|
|
|
|
|
|
41,964,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*including additional property and equipment purchased from Lintasarta amounting to Rp1,345 (net of intercompany profit of Rp384)
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
8.
PROPERTY AND EQUIPMENT (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2012/December 31, 2011 (One Year)
|
|
|
|
|
Balance
|
|
|
|
|
|
|
|
Balance
|
|
|
|
|
at Beginning
|
|
Transactions during the Year
|
|
at End
|
|
|
|
|
of Year
|
|
Additions
|
|
Derecognitions
|
|
Reclassifications
|
|
of Year
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
Direct ownership
|
|
|
|
|
|
|
|
|
|
|
Landrights
|
541,087
|
|
-
|
|
-
|
|
1,975
|
|
543,062
|
|
Buildings
|
814,191
|
|
2,518
|
|
-
|
|
51,003
|
|
867,712
|
|
Information technology equipment
|
3,046,084
|
|
16
|
|
(42,816)
|
|
392,071
|
|
3,395,355
|
|
Office equipment
|
1,239,609
|
|
37,596
|
|
(37,171)
|
|
2,096
|
|
1,242,130
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements
|
11,974,442
|
|
-
|
|
(101,426)
|
|
340,712
|
|
12,213,728
|
|
Vehicles
|
24,700
|
|
160
|
|
(1,066)
|
|
-
|
|
23,794
|
|
Cellular technical equipment
|
34,850,044
|
|
400,956
|
|
(1,709,433)
|
|
3,871,437
|
|
37,413,004
|
|
Transmission and cross-
|
|
|
|
|
|
|
|
|
|
|
|
connection equipment
|
18,287,587
|
|
114,475
|
|
(90,488)
|
|
1,373,309
|
|
19,684,883
|
|
FWA technical equipment
|
1,345,157
|
|
-
|
|
-
|
|
149
|
|
1,345,306
|
|
Operation and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
center and measurement unit
|
1,355,263
|
|
-
|
|
(22)
|
|
97,352
|
|
1,452,593
|
|
Fixed access network
|
|
|
|
|
|
|
|
|
|
|
|
equipment
|
1,126,614
|
|
-
|
|
-
|
|
40,787
|
|
1,167,401
|
|
Properties under
|
|
|
|
|
|
|
|
|
|
|
|
construction and
|
|
|
|
|
|
|
|
|
|
|
|
installation
|
3,461,884
|
|
5,517,983
*
|
|
-
|
|
(6,170,891)
|
|
2,808,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under finance lease
|
|
|
|
|
|
|
|
|
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements (Note 2j)
|
471,051
|
|
427,242
|
|
-
|
|
-
|
|
898,293
|
|
Total
|
78,537,713
|
|
6,500,946
|
|
(1,982,422)
|
|
-
|
|
83,056,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Depreciation
|
|
|
|
|
|
|
|
|
|
|
Direct ownership
|
|
|
|
|
|
|
|
|
|
|
Buildings
|
313,721
|
|
34,523
|
|
-
|
|
-
|
|
348,244
|
|
Information technology
|
|
|
|
|
|
|
|
|
|
|
|
equipment
|
2,349,288
|
|
412,137
|
|
(42,816)
|
|
-
|
|
2,718,609
|
|
Office equipment
|
958,324
|
|
51,219
|
|
(37,171)
|
|
-
|
|
972,372
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements
|
4,694,662
|
|
850,015
|
|
(101,349)
|
|
-
|
|
5,443,328
|
|
Vehicles
|
18,646
|
|
2,852
|
|
(1,067)
|
|
-
|
|
20,431
|
|
Cellular technical equipment
|
15,488,516
|
|
3,250,203
|
|
(1,203,195)
|
|
-
|
|
17,535,524
|
|
Transmission and cross-
|
|
|
|
|
|
|
|
|
|
|
|
connection equipment
|
8,032,100
|
|
1,527,191
|
|
(80,036)
|
|
-
|
|
9,479,255
|
|
FWA technical equipment
|
534,842
|
|
122,854
|
|
-
|
|
-
|
|
657,696
|
|
Operation and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
center and measurement unit
|
1,093,598
|
|
125,789
|
|
(22)
|
|
-
|
|
1,219,365
|
|
Fixed access network equipment
|
842,092
|
|
67,263
|
|
-
|
|
-
|
|
909,355
|
|
|
|
|
|
|
|
|
|
|
|
|
Under finance lease
|
|
|
|
|
|
|
|
|
|
|
Building and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
improvements (Note 2j)
|
51,277
|
|
96,472
|
|
-
|
|
-
|
|
147,749
|
|
Total
|
34,377,066
|
|
6,540,518
|
|
(1,465,656)
|
|
-
|
|
39,451,928
|
|
Less Impairment in Value
|
98,611
|
|
-
|
|
-
|
|
-
|
|
98,611
|
|
Net Book Value
|
44,062,036
|
|
|
|
|
|
|
|
43,505,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*including additional property and equipment purchased from Lintasarta amounting to Rp88,371 (net of intercompany profit of Rp27,578)
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
8.
PROPERTY AND EQUIPMENT (continued)
Submarine cables (presented as part of transmission and cross-connection equipment) represent the Companys proportionate investment in submarine cable circuits jointly constructed, operated, maintained and owned with other countries, based on the respective contracts and/or the construction and maintenance agreements.
Depreciation expense charged to profit or loss amounted to Rp6,591,704 and Rp5,773,257 for the nine-month periods ended September 30, 2013 and 2012, respectively.
Management believes that there is no impairment in asset value or recovery of the impairment reserve as contemplated in PSAK 48 (Revised 2009) for the current period.
As of September 30, 2013, the Group has no property and equipment pledged as collateral to any credit facilities.
As of September 30, 2013, the Group insured its property and equipment (except submarine cables and landrights) for US$242,914 and Rp35,502,526 including insurance amounting to US$117,700 on the Companys satellite. Management believes that the sum insured is sufficient to cover possible losses arising from fire, explosion, lightning, aircraft damage and other natural disasters.
As of September 30, 2013, the Group has property and equipment with total cost amounting to Rp4,967,053, which have been fully depreciated but are still being used.
As of September 30, 2013, the fair value of the Groups property and equipment determined under the income approach amounted to Rp77,592,149.
The details of the Groups properties under construction and installation as of September 30,2013, December 31, 2012 and January 1, 2012 / December 31, 2011 are as follows:
|
|
|
Percentage of
|
|
|
|
Estimated Date
|
|
|
|
Completion
|
|
Cost
|
|
of Completion
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
|
|
|
|
|
|
Cellular technical equipment
|
1- 97
|
|
4,478,282
|
|
October2013 -April 2015
|
|
Building and leasehold improvements
|
10- 96
|
|
694,936
|
|
October 2013 - May 2015
|
|
Transmission and cross-connection equipment
|
2 - 93
|
|
319,809
|
|
October 2013 - May 2015
|
|
Information technology equipment
|
45 - 98
|
|
95,730
|
|
October 2013 - January 2014
|
|
Building
|
95
|
|
71,385
|
|
December 2013
|
|
Others
|
95
|
|
38,068
|
|
October 2013 - January 2014
|
|
Total
|
|
|
5,698,210
|
|
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
8.
PROPERTY AND EQUIPMENT (continued)
|
|
|
Percentage of
|
|
|
|
Estimated Date
|
|
|
|
Completion
|
|
Cost
|
|
of Completion
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
|
|
|
|
Cellular technical equipment
|
9 - 99
|
|
1,944,855
|
|
January - March 2013
|
|
Transmission and cross-connection equipment
|
7 - 99
|
|
491,131
|
|
January - March 2013
|
|
Building and leasehold improvements
|
10 - 96
|
|
279,435
|
|
January - March 2013
|
|
Information technology equipment
|
18 - 95
|
|
202,740
|
|
January - September 2013
|
|
Others
|
30 - 80
|
|
48,300
|
|
January - December 2013
|
|
Total
|
|
|
2,966,461
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2012 / December31, 2011
|
|
|
|
|
|
|
Cellular technical equipment
|
17 - 90
|
|
1,775,032
|
|
January - June 2012
|
|
Transmission and cross-connection equipment
|
18 - 98
|
|
799,321
|
|
January - June 2012
|
|
Building and leasehold improvements
|
20 - 95
|
|
141,022
|
|
January - June 2012
|
|
Information technology equipment
|
40 - 80
|
|
91,182
|
|
January 2012 - January 2013
|
|
Others
|
40 - 90
|
|
2,419
|
|
January - September 2012
|
|
Total
|
|
|
2,808,976
|
|
|
There are no borrowing costs capitalized to properties under construction and installation for the nine-month periods ended September 30, 2013 and 2012.
For the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011, exchanges and sales of certain property and equipment were made as follows:
January 1,
2012 /
September 30,
December 31,
December 31,
2013
2012
2011
(Nine Months)
(One Year)
(One Year)
Exchanges of Assets
Kalimantan Project
Carrying amount of assets received
-
-
400,956
Carrying amount of assets given up
-
-
(400,956)
Sumatra and Java Project (Note 33h)
Carrying amount of assets received
57,069
273,665
115,734
Carrying amount of assets given up
(57,069)
(273,665
)
(115,734)
Sales of 2,500 Towers (Note 29)
Proceeds
-
3,870,600
-
Net book value
-
(1,372,674
)
-
Excess of selling price over carrying amount
-
2,497,926
-
Deferred gain
-
(1,318,923)
-
Recognized gain
-
1,179,003
-
Outright Sales of Assets Being Leased
Fair value of assets being leased
196,464
-
-
Net book value
(141,223)
-
-
Gain
55,241
-
-
Sales of Assets
Proceeds
11,334
7,215
6,708
Net book value
(174)
(11,487
)
(76)
Gain
66,401
1,174,731
6,632
8.
PROPERTY AND EQUIPMENT (continued)
In the above exchange of asset transactions, the fair values of neither the assets received nor the assets given up could be measured reliably, hence, their values were measured at the carrying amounts of the assets given up plus cash consideration.
On January 28, 2013, the Company and PT Link Net (Link Net) entered into an agreement, whereby the Company agreed to grant Link Net an Indefeasible Right of Use (IRU) for a pair of fiber optics in the Companys Jakarta-Batam-Singapore (JAKABARE) submarine cable network for a non-cancellable period of 12 years starting on January 1, 2013 to December 31, 2024. Link Net agreed to pay the Company upfront the amount of US$20,300 (equivalent to Rp196,464) for the 12-year period right to use the pair of fiber optics (from the total fiber optics capacity of4 pairs of JAKABARE submarine cable). The payment will be done in several installments until October 30, 2013. In April, May and August 2013, the Company received the first, second and third installments totaling US$17,000 (equivalent to Rp169,922). As of September 30, 2013, the outstanding receivable amounting to US$3,300 (equivalent to Rp38,323) from Link Net is presented as part of Accounts Receivable - Others.For the nine-month period ended September 30, 2013, the Company derecognized a portion of its asset with carrying value of Rp141,223 and recognized the gain from outright sales of Rp55,241.
9.
GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in goodwill and other intangible assets, including non-integrated software, for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows:
|
|
|
|
Non-integrated
|
|
Other intangible
|
|
|
|
|
|
|
|
|
software
|
|
asset
|
|
Goodwill
|
|
Total
|
|
Cost
|
|
|
|
|
|
|
|
|
|
At January 1, 2011
|
|
275,629
|
|
597,448
|
|
2,944,362
|
|
3,817,439
|
|
Additions
|
|
10,340
|
|
112
|
|
-
|
|
10,452
|
|
At December 31, 2011
|
|
285,969
|
|
597,560
|
|
2,944,362
|
|
3,827,891
|
|
Additions
|
|
23,055
|
|
18
|
|
-
|
|
23,073
|
|
At December 31, 2012
|
|
309,024
|
|
597,578
|
|
2,944,362
|
|
3,850,964
|
|
Additions
|
|
2,016
|
|
14
|
|
-
|
|
2,030
|
|
At September 30, 2013
|
|
311,040
|
|
597,592
|
|
2,944,362
|
|
3,852,994
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Amortization
|
|
|
|
|
|
|
|
|
|
At January 1, 2011
|
|
225,952
|
|
597,448
|
|
1,619,979
|
|
2,443,379
|
|
Amortization
|
|
17,608
|
|
51
|
|
-
|
|
17,659
|
|
At December 31, 2011
|
|
243,560
|
|
597,499
|
|
1,619,979
|
|
2,461,038
|
|
Amortization
|
|
16,210
|
|
9
|
|
-
|
|
16,219
|
|
At December 31, 2012
|
|
259,770
|
|
597,508
|
|
1,619,979
|
|
2,477,257
|
|
Amortization
|
|
13,293
|
|
7
|
|
-
|
|
13,300
|
|
At September 30, 2013
|
|
273,063
|
|
597,515
|
|
1,619,979
|
|
2,490,557
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Book Value
|
|
|
|
|
|
|
|
|
|
At December 31, 2011
|
|
42,409
|
|
61
|
|
1,324,383
|
|
1,366,853
|
|
At December 31, 2012
|
|
49,254
|
|
70
|
|
1,324,383
|
|
1,373,707
|
|
At September 30, 2013
|
|
37,977
|
|
77
|
|
1,324,383
|
|
1,362,437
|
9.
GOODWILL AND OTHER INTANGIBLE ASSETS (continued)
Goodwill arose from the acquisition of ownership in Bimagraha and Satelindo in 2001 and 2002, respectively, and from the acquisition of additional ownership in Lintasarta in 2005, in SMT in 2008 and in LMD in 2010.
The details of other intangible assets arising from the acquisition of Satelindo in 2002 are as follows:
|
|
|
|
Amount
|
|
Spectrum license
|
222,922
|
|
Customer base
|
|
|
-
|
Post-paid
|
154,220
|
|
-
|
Prepaid
|
73,128
|
|
Brand
|
147,178
|
|
Total
|
597,448
|
Goodwill acquired through business combination has been allocated to the cellular business unit, which is also considered as one of the Groups operating segments.
Goodwill is tested for impairment annually (as at December 31) and when circumstances indicate the carrying value may be impaired. The Company considers the relationship between its market capitalization and its book value, among other factors, when reviewing for indicators of impairment. As of December 31, 2012, the market capitalization of the Company was above the book value of its equity. The recoverable amount of the cellular business unit has been determined based on fair values less cost to sell (FVLCTS) calculation that uses the Income Approach (a Discounted Cash Flows Method) and the Market Approach (a Guideline Public Company Method).
Key assumptions used in the FVLCTS calculation at December 31, 2012:
Discount rates
- The Company has chosen to use weighted average cost of capital (WACC) as the discount rate for the discounted cash flow. The estimated WACC applied in determining the recoverable amount of the cellular business unit is between 11% and 12%.
Compounded Annual Growth Rate (CAGR)
- The CAGR projection for the 5-year budget period of the cellular business units revenue based on the market analysts forecast is between 5.6% and 7.8%.
Cost to Sell
- As the recoverable amount of the cellular business unit is determined using FVLCTS, the estimated cost to sell the business is based on a certain percentage of the equity value. The estimated cost to sell used for this calculation is at approximately 1.0% of the enterprise value.
The Company considers the relationship between its market capitalization and its book value, among other factors, when reviewing for indicators of impairment. As of September 30, 2013, the market capitalization of the Company was above the book value of its equity. As a result, management does not perform an impairment calculation as of September 30, 2013.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
10.
LONG-TERM PREPAID RENTALS - NET OF CURRENT PORTION
This account represents mainly the long-term portion of prepaid rentals on sites.
11.
LONG-TERM ADVANCES
This account represents advances to suppliers and contractors for the purchase and construction/ installation of property and equipment which will be reclassified to the related property and equipment accounts upon the receipt of the property and equipment purchased or after the construction/installation of the property and equipment has reached a certain percentage of completion.
12. OTHER NON-CURRENT FINANCIAL ASSETS
This account consists of the following:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Other long-term investments
|
1,519,291
|
|
1,483,317
|
|
116,307
|
|
Less allowance for impairment
|
113,577
|
|
113,577
|
|
113,577
|
|
|
Net
|
1,405,714
|
|
1,369,740
|
|
2,730
|
|
Restricted cash and cash equivalents
|
|
|
|
|
|
|
|
(including US$258in 2013, US$140 in 2012 and
|
|
|
|
|
|
|
|
US$290 in 2011)
|
66,216
|
|
83,232
|
|
50,826
|
|
Employee loans receivable
|
9,254
|
|
11,025
|
|
13,515
|
|
Others (including US$1,306 in 2013, US$1,010
|
|
|
|
|
|
|
|
in 2012 and US$1,288 in 2011)
|
42,334
|
|
79,143
|
|
145,199
|
|
|
Sub-total
|
117,804
|
|
173,400
|
|
209,540
|
|
Total
|
1,523,518
|
|
1,543,140
|
|
212,270
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
12. OTHER NON-CURRENT FINANCIAL ASSETS (continued)
Other long-term investments - net consist of the following:
a.
Investments in shares of stock classified as available-for-sale investment:
September 30, 2013
|
|
Location
|
|
Principal Activity
|
|
Ownership
(%)
|
|
|
Cost
|
|
Unrealized Changes in Fair Value
|
|
Carrying Value
|
PT Tower Bersama Infrastructure Tbk (Tower Bersama)* (Note 29)
|
|
Indonesia
|
|
Telecommunication infrastructure service
|
|
5.00
|
|
|
977,292
|
|
425,692
|
|
1,402,984
|
December 31, 2012
Tower Bersama (Note 29)
|
|
Indonesia
|
|
Telecommunication infrastructure service
|
|
5.00
|
|
|
977,292
|
|
389,718
|
|
1,367,010
|
*
For the nine-month period ended September 30, 2013, the Company recorded dividend income from Tower Bersama amounting to Rp14,390,which is received on October 3, 2013 (Note 39b).
The Companys 5% ownership in Tower Bersama is part of the compensation from sale and leaseback transaction of telecommunication towers done on August 2, 2012 (Note 29).
b.
Investments in shares of stock accounted under the cost method:
|
|
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership
|
|
Cost/Carrying
|
|
|
|
|
|
|
Location
|
|
Principal Activity
|
|
(%)
|
|
Value
|
|
|
PT First Media Tbk
|
Indonesia
|
|
Cable television and internet network service provider
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.07
|
|
50,000
|
|
|
Pendrell Corporation
|
|
|
|
|
|
|
|
|
|
|
[previously ICO Global
|
|
|
|
|
|
|
|
|
|
|
Communication
|
|
|
|
|
|
|
|
|
|
|
(Holdings) Limited**]
|
United States of America
|
|
Satelite service
|
|
0.0065
|
|
49,977
|
|
|
Asean Cableship Pte. Ltd.
|
|
|
Repairs and maintenance of submarine cables
|
|
|
|
|
|
|
|
|
(ACPL)***
|
Singapore
|
|
|
16.67
|
|
1,265
|
|
|
Others
|
|
|
|
|
12,80 - 18,89
|
|
14,966
|
|
|
Total
|
|
|
|
|
|
|
116,208
|
|
|
Less allowance for impairment
|
|
|
|
|
|
|
113,577
|
|
|
Net
|
|
|
|
|
|
|
2,631
|
|
|
December 31, 2012 and January 1, 2012 / December 31, 2011
|
|
|
PT First Media Tbk
|
Indonesia
|
|
Cable television and internet network service provider
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.07
|
|
50,000
|
|
|
Pendrell Corporation**
|
United States of America
|
|
Satelite service
|
|
0.0067
|
|
49,977
|
|
|
ACPL***
|
Singapore
|
|
Repairs and maintenance of submarine cables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.67
|
|
1,265
|
|
|
Others
|
|
|
|
|
12,80 - 18,89
|
|
14,966
|
|
|
Total
|
|
|
|
|
|
|
116,208
|
|
|
Less allowance for impairment
|
|
|
|
|
|
|
113,577
|
|
|
Net
|
|
|
|
|
|
|
2,631
|
**
On March 15, 2011, the Companys ownership in ICO Global Communication (Holdings) Limited was diluted from 0.0087% to 0.0068% since the Company did not exercise its right in relation to a right issue conducted by ICO Global Communication (Holdings) Limited. On July 21, 2011, ICO Global Communication changed its name to Pendrell Corporation. Furthermore, as of September 30, 2013, the Companys ownership in Pendrell has been diluted to 0.0065%.
***
The Company received dividend income from its investment in ACPL totaling US$1,979 (equivalent to Rp19,691) andUS$1,574 (equivalent to Rp13,790) for the nine-monthperiod ended September 30, 2013 and year ended December 31, 2011, respectively.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
12. OTHER NON-CURRENT FINANCIAL ASSETS (continued)
b.
Investments in shares of stock accounted under the cost method (continued):
The Company has provided allowance for impairment of its investments in shares of stock accounted for under the cost method amounting to Rp113,577 as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, which the Company believes is adequate to cover impairment losses on the investments.
c.
Equity securities from BNI of Rp89 and Telkom of Rp10 are both available-for-sale investments as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011.
13.
OTHER NON-CURRENT ASSETS
This account consists of the following:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Investment in an associated company (i)
|
57,166
|
|
57,174
|
|
56,300
|
|
Less allowance for impairment
|
56,300
|
|
56,300
|
|
56,300
|
|
|
Net
|
866
|
|
874
|
|
-
|
Claims for tax refund
|
|
Corporate income tax
|
|
|
|
|
|
|
|
|
Current period / year (Note 16)
|
177,668
|
|
162,647
|
|
181,717
|
|
|
|
Previous years (ii)
|
230,968
|
|
248,509
|
|
333,217
|
|
VAT and others (iii)
|
474,697
|
|
339,995
|
|
351,909
|
|
|
883,333
|
|
751,151
|
|
866,843
|
|
Others
|
110,877
|
|
2,473
|
|
5,593
|
|
Total
|
995,076
|
|
754,498
|
|
872,436
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
13.
OTHER NON-CURRENT ASSETS (continued)
|
(i) Investment in an associated company - accounted under the equity method
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
|
|
|
|
|
|
|
|
|
|
|
|
Ownership
|
|
|
|
Undistributed
|
|
|
|
|
|
Location
|
|
Principal Activity
|
|
%
|
|
Cost
|
|
Net Loss
|
|
Carrying Value
|
|
PT Citra Bakti
Indonesia
|
Indonesia
|
|
Certified service
|
|
33.33
|
|
1,000
|
|
134
|
|
866
|
|
|
company for chip-
|
|
|
|
|
|
|
|
|
|
|
based ATM/debit
|
|
|
|
|
|
|
|
|
|
|
cards and related
|
|
|
|
|
|
|
|
|
|
|
devices and
|
|
|
|
|
|
|
|
|
|
|
infrastructure
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PT Citra Bakti
Indonesia
|
Indonesia
|
|
Certified service
|
|
33.33
|
|
1,000
|
|
126
|
|
874
|
|
|
company for chip-
|
|
|
|
|
|
|
|
|
|
|
based ATM/debit
|
|
|
|
|
|
|
|
|
|
|
cards and related
|
|
|
|
|
|
|
|
|
|
|
devices and
|
|
|
|
|
|
|
|
|
|
|
infrastructure
|
|
|
|
|
|
|
|
|
(ii)
The claims for tax refund with respect to corporate income tax for previous years include the following:
·
Satelindos 2002 corporate income tax
On October 14, 2010, the Company submitted an appeal letter to the Tax Court concerning the Companys objection to the correction on Satelindos corporate income tax for fiscal year 2002 amounting to Rp105,809 (including penalties and interest). On June 25, 2012, the Company received the Decision Letter from the Tax Court which declined the Companys appeal on Satelindos corporate income tax for fiscal year 2002. The Company charged the related claim for tax refund amounting to Rp103,163 to current operations as part of Income Tax Expense - Current (Note 16).
·
The Companys 2009 corporate income tax
On April 21, 2011, the Company received an assessment letter on tax overpayment (SKPLB) from the Directorate General of Taxation (DGT) for the Companys 2009 corporate income tax amounting to Rp29,272, which is lower than the amount recognized by the Company in its financial statements. The Company accepted a part of the corrections amounting to Rp836, which was charged to current operations. On May 31, 2011, the Company received the tax refund of its claim for 2009 corporate income tax amounting to Rp23,695, after being offset with the accepted amount of tax correction of VAT for the period January - December 2009 (iii). On July 20, 2011, the Company submitted an objection letter to the Tax Office regarding the remaining correction on the Companys 2009 corporate income tax amounting to Rp65,570. On June 29, 2012, the Company received the Decision Letter from the DGT which declined the Companys objection. On September 21, 2012, the Company submitted an appeal letter to the Tax Court concerning the Companys objection to the correction on corporate income tax for fiscal year 2009. As of October24, 2013, the Company has not received any decision from the Tax Court on such appeal.
13.
OTHER NON-CURRENT ASSETS (continued)
(ii)
The claims for tax refund with respect to corporate income tax for previous years include the following (continued):
·
The Companys 2006 corporate income tax
On April 26, 2011, the Company received the Tax Courts Decision Letter which accepted the Companys appeal on the remaining correction of the 2006 corporate income tax. On June 21, 2011, the Company received the tax refund amounting to Rp82,626. On August 22, 2011, the Company received a copy of a Memorandum Request for Reconsideration(
Memori Permohonan Peninjauan Kembali
) from the Tax Court to the Supreme Court on the Tax Courts Decision Letter dated April 26, 2011 for the 2006 corporate income tax. On September 21, 2011, the Company submitted a Counter-Memorandum Requesting for Reconsideration to the Supreme Court. As of October 24, 2013, the Company has not received any decision from the Supreme Court on such request.
·
The Companys and IMMs 2010 corporate income tax
On April 26, 2012, IMM received SKPLB from the Tax Office for IMMs 2010 corporate income tax amounting to Rp68,657, which is lower than the amount recognized by IMM in its financial statements. IMM charged the unapproved 2010 claim for tax refund amounting to Rp6,422 to current operations as part of current income tax expense (Note 16). On the same date, IMM also received the assessment letter of tax underpayment (SKPKBs) for its 2010 income tax articles 21, 23 and 26 and VAT totaling Rp11,132 (including penalties and interest). On June 22, 2012, IMM received the refund of its claim for 2010 corporate income tax amounting to Rp57,525, after being offset with above underpayment of its 2010 income tax articles 21, 23 and 26 and VAT.
On July 3, 2012, the Company received SKPLB from the DGT for the Companys 2010 corporate income tax amounting to Rp89,381, which is lower than the amount recognized by the Company in its financial statements. The Company accepted all of the corrections amounting to Rp61, which were charged to current operations (Note 16). On August 24, 2012, the Company received the tax refund of its claim for 2010 corporate income tax amounting to Rp89,381. Based on this SKPLB, the tax loss carryforward was adjusted to become Rp1,040,083, which is lower than the amount recognized by the Company in its financial statements. The Company accepted all of the corrections amounting to Rp101,978.
·
The Companys and IMMs 2011 corporate income tax
On June 26, 2013, the Company received SKPLB from the DGT for the Companys 2011 corporate income tax amounting to Rp97,600, which is the same amount recognized by the Company in its annual income tax return. On August 14, 2013, the Company received the tax refund from the DGT amounting to Rp97,600. Based on this SKPLB, the Tax Office made two corrections totaling Rp409,921, which decreased the tax loss carryforward as of December 31, 2011. On September 23, 2013, the Company submitted an objection letter to the Tax Office regarding these two corrections totaling Rp409,921. However, on October 16, 2013, the Company submitted a letter to cancel the objection of one correction amounting to Rp165,944. As of October 24, 2013, the Company has not received any decision from the Tax Office on the remaining objection.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
13.
OTHER NON-CURRENT ASSETS (continued)
(iii)
The claims for tax refund with respect to corporate income tax for previous years include the following (continued):
·
The Companys and IMMs 2011 corporate income tax (continued)
On July 19, 2013, IMM received SKPLB from the Tax Office for IMMs 2011 corporate income tax amounting to Rp90,812, which is higher than the amount recognized by IMM in its financial statements. On the same date, IMM also received SKPKBs for its 2011 income tax articles 23 and 26 and VAT totaling Rp 3,184 (including penalties and interest). On September 6, 2013, IMM received the refund of its claim for 2011 corporate income tax amounting to Rp87,628, after being offset with above underpayment of its 2011 income tax articles 23 and 26 and VAT.
(iii)
The claims for tax refund with respect to VAT and others include the following:
·
The Companys 2009, 2010, 2011 and 2012 VAT
On April 21, 2011, the Company received SKPKB from the DGT for the Companys VAT for the period January - December 2009 totaling Rp182,800 (including penalties). The Company accepted a part of the corrections amounting to Rp4,160 which was charged to current operations. On July 15, 2011, the Company paid the remaining underpayment amounting to Rp178,640 of the VAT for the period January - December 2009. OnJuly 19, 2011, the Company submitted an objection letter to the Tax Office regarding the remaining correction on the Companys VAT for the period January - December 2009. On June 4, 2012, the Company received the decision letter from the DGT that declined the Companys objection and, based on its audit, the DGT charged the Company for additional underpayment for the period January, March, April, June, August - December 2009 totaling Rp57,166 and overpayment for the period February, May and July 2009 totaling Rp4,027. On July 4, 2012, the Company paid the additional underpayment amounting to Rp57,166. On August 24 and 31, 2012, the Company received the overpayment totaling Rp4,027. On September 3, 2012, the Company submitted an appeal letter to the Tax Court regarding the remaining correction on the Companys VAT for the period January - December 2009. As of October 24, 2013, the Company has not received any decision from the Tax Court on such appeal.
On July 3, 2012, the Company received SKPLB from the DGT for the Companys VAT for the period March 2010 amounting to Rp28,545, which is lower than the amount recognized by the Company in its financial statements, and SKPKBs for the Companys VAT for the period January, February and April - December 2010 totaling Rp98,011 (including penalties). On August 2, 2012, the Company paid the underpayment amounting to Rp98,011. On August 24, 2012, the Company received the overpayment amounting to Rp28,545 from the DGT. On October 1 and 2, 2012, the Company submitted objection letters to the Tax Office regarding SKPLB and SKPKBs on the Companys VAT for the period January - December 2010 totaling Rp106,619. On September 17 and 26, 2013, the Company received the decision letter from the DGT which charged the Company for additional underpayment for the period January - December 2010 totaling Rp93,167 (Note 39e). As of October 24, 2013, the Company plans to submit the appeal letter to the Tax Court regarding the remaining correction on the Companys VAT for the period January - December 2010 totaling Rp199,786.
On June 26, 2013, the Company received SKPKBs from the DGT for the Companys 2011 income tax articles 21, 26 and 4(2) totaling Rp4,171 (including penalties) and VAT for the period January - December 2011 totaling Rp133,160 (including penalties). The Company accepted all of the corrections on income taxes totaling Rp4,171 and a part of the corrections on VAT totaling Rp2,069, which were charged to current operations.On July 24, 2013, the Company paid the remaining underpayment amounting to Rp131,091 of the VAT for the period January - December 2011. On September 23, 2013, the Company submitted an objection letter to the Tax Office regarding the remaining correction on the Companys VAT for the period January - December 2011. As of October 24, 2013, the Company has not received any decision from the Tax Office on such objection.
13.
OTHER NON-CURRENT ASSETS (continued)
(iii)
The claims for tax refund with respect to VAT and others include the following (continued):
·
The Companys 2009, 2010, 2011 and 2012 VAT (continued)
On September 4, 2013, the Company received SKPKBs from the DGT for the Companys VAT for the period January - December 2012 totaling Rp148,161 (including penalties) (Note 39a). As of October 24, 2013, the Company plans to submit the objection letter to the Tax Office regarding the correction on the Companys VAT for the period January - December 2012.
·
As of January 1, 2012 / December 31, 2011, this account included the claims for tax refund from the Companys 2008 and 2009 income tax article 26 and Satelindos 2002 and 2003 income tax article 26 which were reclassified to Prepaid Taxes as of December 31, 2012 (Note 6).
14. SHORT-TERM BANK LOAN
The balance of this account amounting to Rp1,499,769, Rp299,529 and Rp1,499,256 (net of unamortized loan issuance cost of Rp231, Rp471 and Rp744, respectively) as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, respectively, represents unsecured facility drawdowns from Mandiri, a related party (Note 31).
On June 21, 2011, the Company entered into a Revolving Time Loan Facility agreement with Mandiri covering a maximum amount of Rp1,000,000 to finance the Companys operational working capital, capital expenditure and/or refinancing requirements. This facility is available from June 21, 2011 to June 20, 2014 and drawdowns bear interest at 1-month Jakarta Inter-Bank Offered Rate (JIBOR) plus 1.4% per annum. Each drawdown matures 3 months from the drawdown date and can be extended for further 3-month periods by submitting a written request for such extension to Mandiri.
Subsequently, on December 5, 2011, the Company entered into an amendment of this agreement to cover the increase of the facility amount to Rp1,500,000 and the change of the interest rate to 1-month JIBOR plus 1.25% per annum. On July 12, 2013, the interest rate was changed to 1-month JIBOR plus 1.75% per annum.
On August 2 and December 14, 2011, March 28, June 21, December 12 and 26, 2012, April 5, June 4 and July 24, 2013, the Company made several drawdowns from this loan facility totaling Rp3,500,000.
On February 2, May 14, June 29, July 5, August 2, 2012 and January 15, 2013, the Company repaid the drawdowns made previously totalling Rp2,000,000.
Voluntary early repayment is permitted subject to 3 days prior written notice. The Company may early repay the whole or any part of the loan.
Based on the facility agreement, the Company is required to comply with certain covenants such as maintaining financial ratios. As of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, the Company has complied with all the financial ratios required to be maintained under the loan agreements.
The amortization of the loan issuance cost for the nine-month periods ended September 30, 2013 and 2012 amounted to Rp240 and Rp241, respectively (Note 28).
15.
PROCUREMENT PAYABLE
This account consists of amounts due for capital and operating expenditures procured from the following:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2011 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Related parties (Note 31) (including US$20
|
|
|
|
|
|
|
|
in 2013, US$78 in 2012 and US$114 in 2011)
|
26,974
|
|
43,783
|
|
36,073
|
|
Third parties (including US$118,936 in 2013,
|
|
|
|
|
|
|
|
US$141,024 in 2012 and US$220,674 in 2011)
|
3,413,693
|
|
2,694,067
|
|
3,439,789
|
|
Total
|
3,440,667
|
|
2,737,850
|
|
3,475,862
|
The billed amount of procurement payable amounted to Rp877,333, Rp531,799 and Rp555,065 as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, respectively. The unbilled amount amounted to Rp2,563,334 Rp2,206,051 and Rp2,920,797 as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, respectively.
16.
TAXES PAYABLE
This account consists of the following:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Estimated corporate income tax payable,
|
|
|
|
|
|
|
|
less tax prepayments of Rp81,505 in 2013,
|
|
|
|
|
|
|
|
Rp97,715 in 2012 and Rp106,874 in 2011
|
5,977
|
|
26,137
|
|
13,330
|
|
Income tax:
|
|
|
|
|
|
|
|
Article 4(2)
|
16,853
|
|
16,676
|
|
10,624
|
|
|
Article 21
|
17,967
|
|
25,661
|
|
15,366
|
|
|
Article 23
|
8,151
|
|
9,942
|
|
4,107
|
|
|
Article 25
|
9,139
|
|
7,888
|
|
14,964
|
|
|
Article 26
|
10,335
|
|
8,962
|
|
18,863
|
|
|
Article 29
|
61,686
|
|
-
|
|
-
|
|
VAT
|
660
|
|
317
|
|
13,765
|
|
Others
|
955
|
|
16
|
|
187
|
|
Total
|
131,723
|
|
95,599
|
|
91,206
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
16.
TAXES PAYABLE (continued)
The reconciliation between profit(loss) before income tax and estimated taxable income (tax loss) of the Company for the nine-monthperiods ended September 30, 2013 and 2012 is as follows:
|
|
|
|
|
2013
|
|
2012
|
|
Profit (loss) before income tax per interim consolidated statement of
|
|
|
|
|
|
comprehensive income
|
(2,201,567)
|
|
597,863
|
|
Company's equity in Subsidiaries profit before income tax and reversal of
|
|
|
|
|
|
inter-company consolidation eliminations
|
(197,782)
|
|
(160,065)
|
|
Profit (loss) before income tax of the Company
|
(2,399,349)
|
|
437,798
|
|
Positive adjustments
|
|
|
|
|
|
Depreciation - net
|
1,211,375
|
|
435,053
|
|
|
Charges from leasing transactions
|
532,980
|
|
82,052
|
|
|
Accrual of employee benefits - net
|
130,227
|
|
83,586
|
|
|
Provision for impairment of accounts receivable - net
|
80,112
|
|
65,182
|
|
|
Employee benefit
|
48,169
|
|
41,885
|
|
|
Provision for termination, gratuity and compensation benefits
|
|
|
|
|
|
|
of employees
|
36,093
|
|
32,804
|
|
|
Provision for decline in value of inventory
|
25,550
|
|
-
|
|
|
Tax expenses
|
25,408
|
|
-
|
|
|
Amortization of long-term prepaid licenses
|
12,208
|
|
2,575
|
|
|
Donations
|
8,773
|
|
7,963
|
|
|
Assessments for income taxes and VAT (including penalties)
|
6,156
|
|
-
|
|
|
Net periodic pension cost
|
632
|
|
-
|
|
|
Representation and entertainment
|
563
|
|
978
|
|
|
5% final tax on tower sales (Note 29)
|
-
|
|
185,339
|
|
|
Interest compensation on the overpayment of 2004
|
|
|
|
|
|
|
corporate income tax
|
-
|
|
60,674
|
|
|
Amortization of debt and bonds issuance costs,
|
|
|
|
|
|
|
consent solicitation fees and discount (Notes 18 and 19)
|
-
|
|
22,755
|
|
|
Others
|
45,626
|
|
41,014
|
|
|
|
|
|
|
|
Negative adjustments
|
|
|
|
|
|
Equity in net income of investees
|
(187,793)
|
|
(140,083)
|
|
|
Write-off of accounts receivable
|
(154,654)
|
|
-
|
|
|
Amortization of deferred gain on tower sales - net, already subjected
to final tax (Note 29)
|
(105,787)
|
|
-
|
|
|
Amortization of other intangible assets
|
(96,693)
|
|
(112,913)
|
|
|
Gain on outright sale of assets being leased (Note 8)
|
(55,241)
|
|
-
|
|
|
Loss on sale and exchange of property and equipment
|
(40,814)
|
|
(135,147)
|
|
|
Interest income already subjected to final tax
|
(32,801)
|
|
(41,603)
|
|
|
Write-off of short-term investments (Note 7)
|
(25,395)
|
|
-
|
|
|
Amortization of debt and bonds issuance costs,
|
|
|
|
|
|
|
consent solicitation fees and discount (Notes 18 and 19)
|
(17,904)
|
|
-
|
|
|
Gain on tower sales - net already subjected to final tax (Note 29)
|
-
|
|
(860,946)
|
|
|
Net periodic pension cost
|
-
|
|
(4,781)
|
|
|
Others
|
-
|
|
(1,486)
|
|
Estimated taxable income (tax loss) of the Company - current period
|
(952,559)
|
|
202,699
|
|
Tax losses carryforward at beginning of period after tax audit
adjustments
|
(571,516)
|
|
(1,307,007)
|
|
Tax losses carryforward at end of period
|
(1,524,075)
|
|
(1,104,308)
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
16. TAXES PAYABLE (continued)
The computation of the income tax expense (benefit) - net for the nine-month periods ended September 30, 2013 and 2012 is as follows:
|
|
|
|
|
2013
|
|
2012
|
|
Income tax expense (benefit) - current,at statutory tax rates
|
|
|
|
|
|
Company
|
|
|
|
|
|
|
Income tax expense - current
|
-
|
|
-
|
|
|
|
Tax expense from correction on Satelindo's corporate income tax
|
|
|
|
|
|
|
|
for fiscal year 2002 (Note 13)
|
-
|
|
103,163
|
|
|
|
Tax expense from tax correction on the Company's corporate income
tax for fiscal year 2010 (Note 13)
|
-
|
|
61
|
|
|
|
Interest compensation on the overpayment of 2004 corporate
|
|
|
|
|
|
|
|
income tax
|
-
|
|
(60,674)
|
|
|
Subsidiaries
Income tax expense -current
|
87,482
|
|
69,574
|
|
|
|
Tax expense from tax correction on IMM's corporate income tax
|
|
|
|
|
|
|
|
for fiscal year 2010 (Note 13)
|
-
|
|
6,422
|
|
Income tax expense - current - net
|
87,482
|
|
118,546
|
|
Income tax expense (benefit) - deferred - effect of temporary
|
|
|
|
|
|
differences at applicable tax rate
|
|
|
|
|
|
Company
|
|
|
|
|
|
|
Equity in net income of investees
|
35,514
|
|
27,600
|
|
|
|
Amortization of other intangible assets
|
24,173
|
|
28,228
|
|
|
|
Write-off of accounts receivable (provision for impairment of
|
18,636
|
|
(16,295)
|
|
|
|
receivables)- net
|
|
|
|
|
|
|
Gain on outright sale of assets being leased
|
13,810
|
|
-
|
|
|
|
Loss on sale and exchange of property and equipment - net
|
10,204
|
|
33,787
|
|
|
|
Write-off of short-term investments (Note 7)
|
6,349
|
|
-
|
|
|
|
Amortization of debt and bonds issuance costs,
|
|
|
|
|
|
|
|
consent solicitation fees and discount (Notes 18 and 19)
|
4,476
|
|
(5,689)
|
|
|
|
Adjustment due to tax audit (Note 13)
|
-
|
|
25,495
|
|
|
|
Reversal of deferred tax liabilities from tower sale transactions
(Note 29)
|
-
|
|
(57,527)
|
|
|
|
Depreciation -net
|
(302,844)
|
|
(108,763)
|
|
|
|
Utilization of tax losses carryforward (tax loss)
|
(238,140)
|
|
50,675
|
|
|
|
Charges from leasing transactions
|
(133,245)
|
|
(20,513)
|
|
|
|
Accrual of employee benefits - net
|
(32,557)
|
|
(20,896)
|
|
|
|
Realization of accrual of provision for termination, gratuity
|
|
|
|
|
|
|
|
and compensation benefits of employees - net
|
(9,023)
|
|
(8,201)
|
|
|
|
Provision for decline in value of inventory
|
(6,388)
|
|
372
|
|
|
|
Amortization of long-term prepaid licenses
|
(3,052)
|
|
(644)
|
|
|
|
Net periodic pension cost
|
(158)
|
|
1,195
|
|
|
|
Others
|
(20,884)
|
|
(9,291)
|
|
|
|
Net
|
(633,129)
|
|
(80,467)
|
|
|
Subsidiaries
|
19,459
|
|
15,941
|
|
Net income tax benefit-deferred
|
(613,670)
|
|
(64,526)
|
|
Income tax expense (benefit) - net
|
(526,188)
|
|
54,020
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
16. TAXES PAYABLE (continued)
The computation of the estimated income tax payable for the nine-month periodsended September 30, 2013 and 2012 is as follows:
|
|
|
|
|
2013
|
|
2012
|
|
Income tax expense (benefit) - current
|
|
|
|
|
|
Company
Income tax expense - current
|
-
|
|
-
|
|
|
|
Tax expense from tax correction on Satelindo's corporate income tax
|
|
|
|
|
|
|
|
for fiscal year 2002 (Note 13)
|
-
|
|
103,163
|
|
|
|
Tax expense from tax correction on Company's corporate income tax
|
|
|
|
|
|
|
|
for fiscal year 2010 (Note 13)
|
-
|
|
61
|
|
|
|
Interest compensation on the overpayment of 2004 corporate
|
|
|
|
|
|
|
|
income tax
|
-
|
|
(60,674)
|
|
|
Subsidiaries
Income tax expense - current
|
87,482
|
|
69,574
|
|
|
|
Tax expense from tax correction on IMM's corporate income tax
|
|
|
|
|
|
|
|
for fiscal year 2010 (Note 13)
|
-
|
|
6,422
|
|
Income tax expense - current - net
|
87,482
|
|
118,546
|
|
Less prepayments of income tax of the Company
|
|
|
|
|
|
Article 22
|
169,244
|
|
62,101
|
|
|
Article 23
|
3,934
|
|
7,338
|
|
Total prepayments of income tax of the Company
|
173,178
|
|
69,439
|
|
Less prepayments of income tax of Subsidiaries
|
|
|
|
|
|
Article 23
|
4,483
|
|
4,148
|
|
|
Article 25
|
81,512
|
|
98,795
|
|
Total prepayments of income tax of Subsidiaries
|
85,995
|
|
102,943
|
|
Total prepayment of income tax
|
259,173
|
|
172,382
|
|
Estimated income tax payable
Subsidiaries
|
5,977
|
|
3,965
|
|
Net
|
171,691
|
|
102,808
|
|
Presented in interim consolidated statement of financial position as:
|
|
|
|
|
Estimated income tax payable - part of taxes payable
|
5,977
|
|
3,965
|
|
Claims for tax refund - as part of Other Non-Current Assets (Note 13)
|
|
|
|
|
|
Company
|
173,178
|
|
69,439
|
|
|
Subsidiaries
|
4,490
|
|
37,334
|
|
Total
|
177,668
|
|
106,773
|
|
Net
|
171,691
|
|
102,808
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
16. TAXES PAYABLE (continued)
The reconciliation between the income tax expense (benefit) calculated by applying the applicable tax rate of 25% to the profit (loss) before income tax and the income tax expense (benefit) - net as shown in the interim consolidated statement of comprehensive income for the nine-month periods ended September 30, 2013 and 2012 is as follows:
|
|
|
|
|
2013
|
|
2012
|
|
Profit (loss) before income tax per interim consolidated statement
|
|
|
|
|
|
of comprehensive income
|
(2,201,567)
|
|
597,863
|
|
Income tax expense(benefit) at the applicable tax rate
|
(550,392)
|
|
149,466
|
|
Companys equity in Subsidiaries profit before income tax
|
|
|
|
|
|
and reversal of inter-company consolidation eliminations
|
37,190
|
|
38,352
|
|
Tax effect on permanent differences
|
|
|
|
|
|
Employee benefits
|
17,138
|
|
14,164
|
|
|
Unrecognized deferred tax asset on current fiscal loss
|
13,412
|
|
12,913
|
|
|
Assessment for income taxes and VAT (including penalties)
|
8,882
|
|
336
|
|
|
Donations
|
3,328
|
|
3,909
|
|
|
Representation and entertainment
|
1,984
|
|
667
|
|
|
Amortization of deferred gain on tower sale - net already
|
|
|
|
|
|
|
subjected to final tax (Note 29)
|
(26,447)
|
|
-
|
|
|
Interest income already subjected to final tax
|
(19,009)
|
|
(18,561)
|
|
|
Gain on tower sale - net already subjected to final tax (Note 29)
|
-
|
|
(226,428)
|
|
|
Others
|
(12,274)
|
|
4,735
|
|
Adjustment due to tax audit
|
-
|
|
25,495
|
|
Interest compensation on the overpayment of 2004 corporate income tax
|
|
|
|
|
and tax expense from correction on Satelindos corporate income tax for
fiscal year 2002
|
-
|
|
42,489
|
|
Tax expenses from tax correction on IMM's and the Companys corporate
|
|
|
|
|
|
income tax for fiscal year 2010
|
-
|
|
6,483
|
|
Income tax expense (benefit) - net per interim consolidated statement
|
(526,188)
|
|
54,020
|
|
|
of comprehensive income
|
|
The tax effects of significant temporary differences between financial and tax reporting of the Company which are outstanding as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011 are as follows:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
Tax losses carryforward
|
381,019
|
|
216,784
|
|
352,246
|
|
|
Accrual of employee benefits - net
|
301,613
|
|
260,033
|
|
206,416
|
|
|
Charges from leasing transactions
|
185,801
|
|
52,556
|
|
18,823
|
|
|
Allowance for impairment of accountsreceivable
|
118,933
|
|
137,568
|
|
125,073
|
|
|
Allowance for impairment of investment in associated
|
|
|
|
|
|
|
|
|
company and other long-term investment
|
42,469
|
|
42,469
|
|
42,469
|
|
|
Pension cost
|
17,894
|
|
17,736
|
|
18,296
|
|
|
Allowance for decline in value of inventory
|
6,732
|
|
345
|
|
774
|
|
|
Allowance for impairment of short-term investments
|
-
|
|
6,349
|
|
6,349
|
|
|
Others
|
3,070
|
|
-
|
|
775
|
|
|
Total
|
1,057,531
|
|
733,840
|
|
771,221
|
16. TAXES PAYABLE (continued)
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
Property and equipment
|
1,769,280
|
|
2,122,016
|
|
2,499,935
|
|
|
Investments in subsidiaries/associated
|
|
|
|
|
|
|
|
|
company - net of amortization of goodwill
|
|
|
|
|
|
|
|
|
and other intangible assets
|
313,262
|
|
271,388
|
|
195,595
|
|
|
Long-term prepaid licenses
|
12,966
|
|
16,018
|
|
16,876
|
|
|
Deferred debt and bonds issuance costs,
|
|
|
|
|
|
|
|
|
consent solicitation fees and discount
|
5,023
|
|
547
|
|
6,856
|
|
|
Difference in transactions of equity changes in
|
|
|
|
|
|
|
|
|
associated company
|
1,460
|
|
1,460
|
|
1,460
|
|
|
Others
|
1,267
|
|
463
|
|
659
|
|
|
Total
|
2,103,258
|
|
2,411,892
|
|
2,721,381
|
|
Deferred tax liabilities - net
|
1,045,727
|
|
1,678,052
|
|
1,950,160
|
The breakdown by entity of the deferred tax assets and liabilities outstanding as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2012 /
|
|
|
|
|
|
September 30, 2013
|
|
December 31, 2012
|
|
December 31, 2011
|
|
|
|
|
|
Deferred Tax
|
|
Deferred Tax
|
|
Deferred Tax
|
|
Deferred Tax
|
|
Deferred Tax
|
|
Deferred Tax
|
|
|
|
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
|
Company
|
-
|
|
1,045,727
|
|
-
|
|
1,678,052
|
|
-
|
|
1,950,160
|
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lintasarta
|
73,540
|
|
-
|
|
78,593
|
|
-
|
|
80,094
|
|
-
|
|
|
IMM
|
16,885
|
|
-
|
|
22,100
|
|
-
|
|
33,718
|
|
-
|
|
|
APE
|
-
|
|
14,630
|
|
-
|
|
5,438
|
|
-
|
|
5,165
|
|
|
ISPL
|
-
|
|
697
|
|
-
|
|
780
|
|
-
|
|
1,027
|
|
Total
|
90,425
|
|
1,061,054
|
|
100,693
|
|
1,684,270
|
|
113,812
|
|
1,956,352
|
The deferred tax assets of Lintasarta relate mainly to the deferred tax on the temporary difference in the recognition of depreciation on property and equipment.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
16. TAXES PAYABLE (continued)
The significant temporary differences on which deferred tax assets have been computed are not deductible for income tax purposes until the accrued employee benefits are paid, the allowance for impairment of trade receivables is realized upon the write-off of the receivables after fulfilling certain requirements under the Income Tax Law, the allowance for impairment of investment in associated company and other long-term investments is realized upon sale of the investments and the pension cost is paid.
The significant deferred tax liabilities relate to the differences in the book and tax bases of property and equipment, investments in subsidiaries/associated company, long-term prepaid licenses, debt and bonds issuance costs, consent solicitation fees and discount.
On March 5, 2012, the Company received the Tax Courts Decision Letter accepting the Companys request for interest compensation related to the issuance of 2004 SKPLB amounting to Rp60,674, which was credited to current income tax benefit in the Companys statement of comprehensive income. On June 29, 2012, the Company received a copy of a Memorandum for Reconsideration Request (
Memori Permohonan Peninjauan Kembali
) from the Tax Court to the Supreme Court on the Tax Courts Decision Letter dated March 5, 2012 for the interest compensation related to the issuance of 2004 SKPLB. On July 27, 2012, the Company submitted a Counter-Memorandum Requesting for Reconsideration to the Supreme Court. Based on the Companys evaluation for the year ended December 31, 2012, the realization of income related with the interest compensation was only probable, instead of virtually certain. Therefore, the interest compensation was not recognized in the Companys financial statements for the year ended December 31, 2012. As of
October 24, 2013, the Company has not received any decision from the Supreme Court on such request.
On November 28, 2012, the Company received SKPKBs from the DGT for the Companys 2009 income tax articles 21, 22, 23, 26 and 4(2) totaling Rp4,829 (including penalties), which were charged to current operations as part of Expenses - Others - Net.
On September 26, 2013, the Company submitted to the Tax Office a revised 2012 annual corporate income tax return after considering the result of tax audit on 2011 corporate income tax, which increased the estimated taxable income for the year ended December 31, 2012 and decreased the accumulated tax losses carry over as of December 31, 2012 by Rp193,846.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
16.TAXES PAYABLE (continued)
The tax losses carryover of SMT and the Company as of September 30, 2013 can be carried forward through 2018 based on the following schedule:
|
Year of Expiration
|
|
Amount
|
|
2014
|
|
31,901
|
|
2015
|
|
355,363
|
|
2016
|
|
289,695
|
|
2017
|
|
36,210
|
|
2018
|
|
974,559
|
|
Total
|
|
1,687,728
|
17.
ACCRUED EXPENSES
This account consists of the following:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2011 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Network repairs and maintenance
|
242,679
|
|
229,921
|
|
288,731
|
|
Employee benefits (Notes 22 and 30)
|
217,948
|
|
200,033
|
|
180,441
|
|
Link
|
208,712
|
|
60,646
|
|
55,593
|
|
Marketing
|
202,991
|
|
235,957
|
|
214,907
|
|
Interest
|
167,046
|
|
331,101
|
|
319,880
|
|
Dealer incentives (Note 2k)
|
136,211
|
|
170,115
|
|
82,615
|
|
Universal Service Obligation (USO) (Note 35)
|
98,868
|
|
92,916
|
|
59,716
|
|
Utilities
|
97,703
|
|
87,669
|
|
58,609
|
|
Consultancy fees
|
54,356
|
|
44,331
|
|
35,309
|
|
Blackberry access fee
|
45,113
|
|
48,666
|
|
79,627
|
|
Concession fee (Note 35)
|
32,757
|
|
41,277
|
|
39,507
|
|
General and administration
|
27,106
|
|
34,772
|
|
31,119
|
|
Rental
|
20,352
|
|
95,200
|
|
59,929
|
|
Others
|
248,835
|
|
288,681
|
|
389,630
|
|
Total
|
1,800,677
|
|
1,961,285
|
|
1,895,613
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
18.
LOANS PAYABLE
This account consists of the following:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Third parties - net*
|
5,478,703
|
|
6,373,040
|
|
8,727,473
|
|
Related party (Note 31)
|
|
|
|
|
|
|
|
Mandiri - net**
|
-
|
|
-
|
|
998,843
|
|
Total loans payable
|
5,478,703
|
|
6,373,040
|
|
9,726,316
|
|
Less current maturities - net ***
|
|
|
|
|
|
|
|
Third parties
|
2,303,418
|
|
2,669,218
|
|
2,301,694
|
|
|
Related party
|
-
|
|
-
|
|
998,843
|
|
Total current maturities
|
2,303,418
|
|
2,669,218
|
|
3,300,537
|
|
Long-term portion
|
|
|
|
|
|
|
|
Third parties
|
3,175,285
|
|
3,703,822
|
|
6,425,779
|
|
|
Related party
|
-
|
|
-
|
|
-
|
|
Total long-term portion
|
3,175,285
|
|
3,703,822
|
|
6,425,779
|
*
net of unamortized debt issuance cost and consent solicitation fees of Rp84,997 as of September 30, 2013, Rp111,333as of December 31, 2012, and Rp146,511as of January 1, 2012 / December 31, 2011; and unamortized debt discount of Rp3,682as of December 31, 2012 and Rp11,891as of January 1, 2012 / December 31, 2011
**
net of unamortized debt issuance cost and consent solicitation fee of Rp1,157 as of January 1, 2012 / December 31, 2011
***
net of unamortized debt issuance cost and consent solicitation fees of Rp134 as of September 30, 2013, Rp6,415 as of December 31, 2012 and Rp2,295 as of January 1, 2012 / December 31, 2011
18.
LOANS PAYABLE (continued)
The loans from third parties consist of the following:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
AB SvenskExportkredit (SEK), Sweden with Guarantee
|
|
|
|
|
|
|
|
from Exportkreditnamnden (EKN) - net of unamortized
|
|
|
|
|
|
|
|
debt issuance cost of Rp14,813 in 2013, Rp21,351
|
|
|
|
|
|
|
|
in 2012 and Rp26,434 in 2011
|
1,830,825
|
|
1,840,124
|
|
2,127,216
|
|
BCA Revolving Time Loan - net of unamortized
|
|
|
|
|
|
|
|
debt issuance cost of Rp134 in 2013, Rp413
|
|
|
|
|
|
|
|
in 2012 and Rp736 in 2011
|
1,499,866
|
|
999,587
|
|
1,499,264
|
|
HSBC France - net of unamortized debt issuance cost
|
|
|
|
|
|
|
|
and consent solicitation fees of Rp68,270 in 2013,
|
|
|
|
|
|
|
|
Rp84,315 in 2012 and Rp104,536 in 2011
|
1,334,953
|
|
1,278,872
|
|
1,356,403
|
|
Bank Sumitomo Mitsui Indonesia ("BSMI")
|
|
|
|
|
|
|
|
Revolving Time Loan - net of unamortized debt
|
|
|
|
|
|
|
|
issuance cost of Rp727 in 2013 and Rp971 in 2012
|
649,273
|
|
99,029
|
|
-
|
|
9-Year Commercial Loan - net of unamortized
|
|
|
|
|
|
|
|
debt issuance cost and consent solicitation fees
|
|
|
|
|
|
|
|
of Rp1,053 in 2013, Rp1,550 in 2012
|
|
|
|
|
|
|
|
and Rp2,046 in 2011
|
163,786
|
|
155,318
|
|
181,834
|
|
Syndicated U.S. Dollar Loan Facility - net
|
|
|
|
|
|
|
|
of unamortized debt issuance cost and consent
|
|
|
|
|
|
|
|
solicitation fees of Rp2,733 in 2012 and Rp11,621
|
|
|
|
|
|
|
|
in 2011
|
-
|
|
1,520,292
|
|
2,069,484
|
|
Goldman Sachs International (GSI)
|
|
|
|
|
|
|
|
Principal, net of unamortized debt discount
|
|
|
|
|
|
|
|
of Rp3,682 in 2012 and Rp11,891 in 2011
|
-
|
|
479,818
|
|
422,409
|
|
|
Foreign Exchange (FX) Conversion Option
|
-
|
|
-
|
|
49,518
|
|
BCA - net of unamortized debt issuance cost
|
|
|
|
|
|
|
|
and consent solicitation fees of Rp1,138
|
-
|
|
-
|
|
998,862
|
|
Investment Credit Facility 6 from CIMB Niaga
|
-
|
|
-
|
|
22,483
|
|
Total
|
5,478,703
|
|
6,373,040
|
|
8,727,473
|
|
Less current maturities (net of unamortized debt
|
|
|
|
|
|
|
|
issuance costs and consent solicitation fees
|
|
|
|
|
|
|
|
totaling Rp134 in 2013, Rp6,415 in 2012
|
|
|
|
|
|
|
|
and Rp2,295 in 2011)
|
2,303,418
|
|
2,669,218
|
|
2,301,694
|
|
Long-term portion
|
3,175,285
|
|
3,703,822
|
|
6,425,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
18. LOANS PAYABLE (continued)
The details of the loans from the related party and third parties are as follows:
|
Counterparties
|
Loan Type
|
Maturity
|
Amount
|
Interest
|
Remarks
|
|
Structure
|
|
a.
|
Mandiri*
|
▪
|
5-year unsecured
|
September 18, 2012
|
Rp2,000,000
|
▪
|
Year 1:
|
▪
|
Without penalty if the
|
|
|
|
|
credit facility 1
|
|
|
|
9.75% p.a.
|
|
repayment was made
|
|
|
|
▪
|
Loan drawdowns
|
|
|
▪
|
Year 2:
|
|
after the 24
th
month
|
|
|
|
|
were payable
|
|
|
|
10.5% p.a.
|
|
after the agreement
|
|
|
|
|
annually
|
|
|
▪
|
Years 3-5:
|
|
date subject to 7 days’
|
|
|
|
|
|
|
|
|
Average 3-
|
|
prior written notice
|
|
|
|
|
|
|
|
|
month JIBOR
|
▪
|
With penalty of 2% of
|
|
|
|
|
|
|
|
|
+ 1.5% p.a.
|
|
the prepaid amount for
|
|
|
|
|
|
|
|
▪
|
Paid quarterly
|
|
repayment prior to the
|
|
|
|
|
|
|
|
|
|
|
24
th
month after the
|
|
|
|
|
|
|
|
|
|
|
agreement date
|
|
|
|
|
|
|
|
|
|
▪
|
On June 21, 2012, the
|
|
|
|
|
|
|
|
|
|
|
Company obtained the
|
|
|
|
|
|
|
|
|
|
|
consent letter from
|
|
|
|
|
|
|
|
|
|
|
Mandiri for the sale of
|
|
|
|
|
|
|
|
|
|
|
asset transaction (Note
|
|
|
|
|
|
|
|
|
|
|
29).
|
|
|
|
|
|
|
|
|
|
▪
|
In September 2012,
|
|
|
|
|
|
|
|
|
|
|
this loan was fully paid.
|
|
b.
|
SEK Sweden
|
▪
|
Credit facilities
|
May 31, 2016
|
US$315,000
|
▪
|
Facility A:
|
▪
|
Permitted only in
|
|
|
with Guarantee
|
|
consisting of
|
for Facility A,
|
|
|
Margin of
|
|
proportionate amount
|
|
|
from EKN
|
|
Facilities A, B and
|
February 28,
|
|
|
0.25% London
|
|
for each of Facilities A,
|
|
|
|
|
C with maximum
|
2017 for
|
|
|
Inter-Bank
|
|
B and C, after the last
|
|
|
|
|
amounts of
|
Facility B and
|
|
|
Offered Rate
|
|
day of the availability
|
|
|
|
|
US$100,000,
|
November 30,
|
|
|
("LIBOR"), SEK
|
|
period and on a
|
|
|
|
|
US$155,000 and
|
2017 for
|
|
|
Funding Cost
|
|
repayment date subject
|
|
|
|
|
US$60,000,
|
Facility C
|
|
|
of 1.05% and
|
|
to 20 days prior written
|
|
|
|
|
respectively
|
|
|
|
EKN
|
|
notice
|
|
|
|
▪
|
Loan drawdowns
|
|
|
|
Premium
|
▪
|
In minimum amount of
|
|
|
|
|
are payable semi-
|
|
|
|
Margin of
|
|
US$5,000 and in an
|
|
|
|
|
annually
|
|
|
|
1.57%
|
|
amount divisible by
|
|
|
|
|
|
|
|
▪
|
Facility B:
|
|
US$500
|
|
|
|
|
|
|
|
|
Margin of
|
▪
|
Any repayment shall
|
|
|
|
|
|
|
|
|
0.05%,
|
|
satisfy the obligation
|
|
|
|
|
|
|
|
|
Commercial
|
|
of loan repayment in
|
|
|
|
|
|
|
|
|
Interest
|
|
inverse chronological order.
|
|
|
|
|
|
|
|
|
Rate
|
▪
|
On June 18, 2012, the
|
|
|
|
|
|
|
|
|
(“CIRR”) and
|
|
Company amended its
|
|
|
|
|
|
|
|
|
EKN
|
|
credit facility agreement
|
|
|
|
|
|
|
|
|
Premium
|
|
with HSBC Bank Plc,
|
|
|
|
|
|
|
|
|
Margin of
|
|
as facility agent. The
|
|
|
|
|
|
|
|
|
1.61%
|
|
amendment included
|
|
|
|
|
|
|
|
▪
|
Facility C:
|
|
changes in definition of
|
|
|
|
|
|
|
|
|
Margin of
|
|
certain terms related to
|
|
|
|
|
|
|
|
|
0.05%, CIRR
|
|
sale of asset
|
|
|
|
|
|
|
|
|
and EKN
|
|
transactions (Note 29).
|
|
|
|
|
|
|
|
|
Premium
|
|
|
|
|
|
|
|
|
|
|
Margin of 1.59%
|
|
|
|
|
|
|
|
|
|
▪
|
Payable
|
|
|
|
|
|
|
|
|
|
|
semi-
|
|
|
|
|
|
|
|
|
|
|
annually
|
|
|
* related party (Note 31)
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
18. LOANS PAYABLE (continued)
|
Counterparties
|
Loan Type
|
Maturity
|
Amount
|
Interest
|
Remarks
|
|
Structure
|
|
c.
|
BCA
|
▪
|
Revolving time loan
|
February 10,
|
Rp1,500,000
|
▪
|
JIBOR +
|
▪
|
Permitted subject to 1
|
|
|
|
|
with maximum amount
|
2014
|
|
|
1.4% p.a.
|
|
day prior written notice
|
|
|
|
|
of Rp1,000,000
|
|
|
|
However,
|
|
the Company may repay
|
|
|
|
▪
|
Each drawdown
|
|
|
|
starting
|
|
the whole or any part of
|
|
|
|
|
matures 1 month from
|
|
|
|
December
|
|
the loan.
|
|
|
|
|
the drawdown date.
|
|
|
|
1, 2011,
|
▪
|
On June 11, 2012, the
|
|
|
|
|
Subsequently, on
|
|
|
|
JIBOR +
|
|
Company obtained the
|
|
|
|
|
August 9, 2011, the
|
|
|
|
1.25% p.a.,
|
|
consent letter from BCA
|
|
|
|
|
Company obtained an
|
|
|
|
starting
|
|
for the sale of asset
|
|
|
|
|
approval from BCA to
|
|
|
|
July 26, 2013,
|
|
transaction (Note 29).
|
|
|
|
|
amend the maturity
|
|
|
|
JIBOR +
|
▪
|
On December 19, 2012,
|
|
|
|
|
date of each drawdown
|
|
|
|
1.5% p.a.,
|
|
the Company amended
|
|
|
|
|
to become at the latest
|
|
|
|
starting
|
|
its credit facility
|
|
|
|
|
on February 10, 2014.
|
|
|
|
August 26,
|
|
agreement with BCA.
|
|
|
|
▪
|
On December 1, 2011,
the facility amount was increased to Rp1,500,000 and the interest rate was changed.
|
|
|
|
2013, JIBOR +
|
|
The amendment included
|
|
|
|
|
|
|
|
1.75% p.a.
|
|
changes in the definition of
|
|
|
|
|
|
|
▪
|
Payable
|
|
sale of asset transaction
|
|
|
|
|
|
|
|
monthly
|
|
(Note 29).
|
|
|
|
|
|
|
|
|
|
§
|
|
d.
|
HSBC
|
▪
|
12 year - COFACE
|
September 30,
|
US$157,243
|
▪
|
5.69% p.a.
|
▪
|
Permitted with a
|
|
|
France
|
|
term facility
|
2019
|
|
▪
|
Payable
|
|
corresponding
|
|
|
|
▪
|
Payable in twenty
|
|
|
|
semi-
|
|
proportionate voluntary
|
|
|
|
|
semi-annual
|
|
|
|
annually
|
|
prepayment under the
|
|
|
|
|
installments
|
|
|
|
|
|
SINOSURE Facility
|
|
|
|
|
|
|
|
|
|
|
after the last day of the
|
|
|
|
|
|
|
|
|
|
|
availability period and
|
|
|
|
|
|
|
|
|
|
|
on a repayment date
|
|
|
|
|
|
|
|
|
|
|
subject to 30 days’ prior
|
|
|
|
|
|
|
|
|
|
|
written notice
|
|
|
|
|
|
|
|
|
|
▪
|
In minimum amount of
|
|
|
|
|
|
|
|
|
|
|
US$10,000 and in an
|
|
|
|
|
|
|
|
|
|
|
amount divisible by
|
|
|
|
|
|
|
|
|
|
|
US$1,000
|
|
|
|
|
|
|
|
|
|
▪
|
Any repayment shall
|
|
|
|
|
|
|
|
|
|
|
satisfy the obligations of
|
|
|
|
|
|
|
|
|
|
|
loan repayment in
|
|
|
|
|
|
|
|
|
|
|
inverse chronological
|
|
|
|
|
|
|
|
|
|
|
order
|
|
|
|
|
|
|
|
|
|
▪
|
On June 18, 2012, the
|
|
|
|
|
|
|
|
|
|
|
Company amended its
|
|
|
|
|
|
|
|
|
|
|
COFACE credit facility
|
|
|
|
|
|
|
|
|
|
|
agreement with HSBC
|
|
|
|
|
|
|
|
|
|
|
France, as facility
|
|
|
|
|
|
|
|
|
|
|
agent. The amendment
|
|
|
|
|
|
|
|
|
|
|
included changes in the
|
|
|
|
|
|
|
|
|
|
|
definition of certain
|
|
|
|
|
|
|
|
|
|
|
terms related to sale of
|
|
|
|
|
|
|
|
|
|
|
asset transactions
|
|
|
|
|
|
|
|
|
|
|
(Note 29).
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
18. LOANS PAYABLE (continued)
|
Counterparties
|
Loan Type
|
Maturity
|
Amount
|
Interest
|
Remarks
|
|
Structure
|
|
d.
|
HSBC
|
▪
|
12 year -
|
September 30,
|
US$44,200
|
▪
|
USD LIBOR
|
▪
|
Permitted with a
|
|
|
France
|
|
SINOSURE term
|
2019
|
|
|
+ 0.35% p.a.
|
|
corresponding
|
|
|
(continued)
|
|
facility
|
|
|
▪
|
Payable
|
|
proportionate voluntary
|
|
|
|
▪
|
Payable in twenty
|
|
|
|
semi-
|
|
prepayment under the
|
|
|
|
|
semi-annual
|
|
|
|
annually
|
|
COFACE Facility after
|
|
|
|
|
installments
|
|
|
|
|
|
the last day of the
|
|
|
|
|
|
|
|
|
|
|
availability period and
|
|
|
|
|
|
|
|
|
|
|
on a repayment date
|
|
|
|
|
|
|
|
|
|
|
subject to 30 days’ prior
|
|
|
|
|
|
|
|
|
|
|
written notice
|
|
|
|
|
|
|
|
|
|
▪
|
In minimum amount of
|
|
|
|
|
|
|
|
|
|
|
US$10,000 and in an
|
|
|
|
|
|
|
|
|
|
|
amount divisible by
|
|
|
|
|
|
|
|
|
|
|
US$1,000
|
|
|
|
|
|
|
|
|
|
▪
|
Any repayment shall
|
|
|
|
|
|
|
|
|
|
|
satisfy the obligations of
|
|
|
|
|
|
|
|
|
|
|
loan repayment in
|
|
|
|
|
|
|
|
|
|
|
inverse chronological
|
|
|
|
|
|
|
|
|
|
|
order.
|
|
|
|
|
|
|
|
|
|
▪
|
On July 23, 2012, the
|
|
|
|
|
|
|
|
|
|
|
Company amended its
|
|
|
|
|
|
|
|
|
|
|
SINOSURE credit
|
|
|
|
|
|
|
|
|
|
|
facility agreement with
|
|
|
|
|
|
|
|
|
|
|
HSBC France, as
|
|
|
|
|
|
|
|
|
|
|
facility agent. The
|
|
|
|
|
|
|
|
|
|
|
amendment included
|
|
|
|
|
|
|
|
|
|
|
changes in the definition of
|
|
|
|
|
|
|
|
|
|
|
certain terms related to
|
|
|
|
|
|
|
|
|
|
|
sale of asset transactions
|
|
|
|
|
|
|
|
|
|
|
(Note 29).
|
|
e.
|
BSMI
|
▪
|
Revolving time
|
December 31,
|
Rp650,000
|
▪
|
JIBOR +
|
▪
|
Permitted subject to 5
|
|
|
|
|
loan with maximum
|
2015
|
|
|
1.25% p.a.
|
|
days’ prior written notice,
|
|
|
|
|
amount of
|
|
|
▪
|
Payable
|
|
the Company may
|
|
|
|
|
Rp650,000
|
|
|
|
monthly,
|
|
repay the whole or any
|
|
|
|
▪
|
Each drawdown
|
|
|
|
quarterly or
|
|
part of the loan.
|
|
|
|
|
matures at the maximum
|
|
|
|
semi-annually
|
|
|
|
|
|
|
of 36 months from the
|
|
|
|
|
|
|
|
|
|
|
drawdown
|
|
|
|
|
|
|
|
|
|
|
date, but not exceeding
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015.
|
|
|
|
|
|
|
|
f.
|
HSBC
|
▪
|
9-year unsecured
|
November 28,
|
US$27,037
|
▪
|
USD LIBOR
|
▪
|
Permitted only on each
|
|
|
Jakarta
|
|
commercial facility
|
2016
|
|
|
+ 1.45% p.a.
|
|
repayment date after
|
|
|
Branch,
|
▪
|
Payable in fifteen
|
|
|
▪
|
Payable
|
|
the firs repayment date
|
|
|
CIMB Niaga
|
|
semi-annual
|
|
|
|
semi-
|
|
subject to 30 days’ prior
|
|
|
and Bank of
|
|
payments after
|
|
|
|
annually
|
|
written notice
|
|
|
China Limited
|
|
24 months from the
|
|
|
|
|
▪
|
In minimum amount of
|
|
|
Jakarta
|
|
date of loan
|
|
|
|
|
|
US$5,000 and in an
|
|
|
Branch
|
|
agreement. For the
|
|
|
|
|
|
amount divisible by
|
|
|
|
|
1
st
five installments:
|
|
|
|
|
|
US$1,000
|
|
|
|
|
US$1,351.85 each;
|
|
|
|
|
▪
|
Any prepayment shall
|
|
|
|
|
and US$2,027.78
|
|
|
|
|
|
satisfy the obligations of
|
|
|
|
|
each for the
|
|
|
|
|
|
loan repayment
|
|
|
|
|
remaining
|
|
|
|
|
|
proportionately.
|
|
|
|
|
installments
|
|
|
|
|
▪
|
On June 20, 2012, the
|
|
|
|
|
thereafter
|
|
|
|
|
|
Company amended its
|
|
|
|
|
|
|
|
|
|
|
credit facility agreement
|
|
|
|
|
|
|
|
|
|
|
with HSBC Ltd, as
|
|
|
|
|
|
|
|
|
|
|
facility agent. The
|
|
|
|
|
|
|
|
|
|
|
amendment included
|
|
|
|
|
|
|
|
|
|
|
changes in the definition of
|
|
|
|
|
|
|
|
|
|
|
certain terms related to
|
|
|
|
|
|
|
|
|
|
|
sale of asset transactions
|
|
|
|
|
|
|
|
|
|
|
(Note 29).
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
18. LOANS PAYABLE (continued)
|
Counterparties
|
Loan Type
|
Maturity
|
Amount
|
Interest
|
Remarks
|
|
Structure
|
|
g.
|
Syndicated U.S.
|
▪
|
5-year unsecured
|
June 12, 2013
|
US$450,000
|
▪
|
USD
|
▪
|
Permitted only after the
|
|
|
Dollar Loan Facility
|
|
credit facility
|
|
|
|
LIBOR +
|
|
6
th
month from the date
|
|
|
- 12 Financial
|
▪
|
Loan drawdowns were
|
|
|
|
1.9% p.a.
|
|
of loan agreement
|
|
|
Institutions**
|
|
paid semi-
|
|
|
|
(onshore
|
|
subject to 15 days' prior
|
|
|
|
|
annually
|
|
|
|
lenders);
|
|
written notice (in the
|
|
|
|
|
|
|
|
|
USD LIBOR +
|
|
minimum amount of
|
|
|
|
|
|
|
|
|
1.85% p.a.
|
|
US$10,000 and in an
|
|
|
|
|
|
|
|
|
(offshore
|
|
amount divisible by
|
|
|
|
|
|
|
|
|
lenders)
|
|
US$1,000).
|
|
|
|
|
|
|
|
▪
|
Payable
|
▪
|
On June 19, 2012, the
|
|
|
|
|
|
|
|
|
semi-
|
|
Company amended its
|
|
|
|
|
|
|
|
|
annually
|
|
credit facility agreement
|
|
|
|
|
|
|
|
|
|
|
with PT Bank DBS
|
|
|
|
|
|
|
|
|
|
|
Indonesia, as facility
|
|
|
|
|
|
|
|
|
|
|
agent. The amendment
|
|
|
|
|
|
|
|
|
|
|
included changes in the
|
|
|
|
|
|
|
|
|
|
|
definition of certain terms
|
|
|
|
|
|
|
|
|
|
|
related to sale of asset
|
|
|
|
|
|
|
|
|
|
|
transactions (Note 29).
|
|
|
|
|
|
|
|
|
|
▪
|
In June 2013, this loan
|
|
|
|
|
|
|
|
|
|
|
was fully paid.
|
|
h.
|
GSI***
|
|
▪ Investment loan
|
May 30, 2013
|
US$50,000
|
|
▪ 8.75% p.a.
|
▪
|
Certain changes affecting
|
|
|
|
|
▪ Provides an “FX”
|
|
|
|
▪ Payable
|
|
withholding taxes in the
|
|
|
|
|
Conversion Option”
|
|
|
|
quarterly
|
|
United Kingdom or
|
|
|
|
|
for GSI to convert the
|
|
|
|
▪ If GSI takes
|
|
Indonesia.
|
|
|
|
|
loan payable into U.S.
|
|
|
|
FX
|
▪
|
Default under Guaranteed
|
|
|
|
|
dollar loan of
|
|
|
|
Conversion
|
|
Notes due 2012.
|
|
|
|
|
US$50,000 on May
|
|
|
|
Option,
|
▪
|
Default under the
|
|
|
|
|
30, 2012 (“FX
|
|
|
|
starting May
|
|
Company’s USD Notes
|
|
|
|
|
Conversion Option”)
|
|
|
|
30, 2012, the
|
|
and IDR Bonds.
|
|
|
|
|
▪ Fair value of FX
|
|
|
|
loan will bear
|
▪
|
Redemption, purchase or
|
|
|
|
|
Conversion Option as
|
|
|
|
interest at
|
|
cancellation of the
|
|
|
|
|
of December 31,
|
|
|
|
the fixed
|
|
Guaranteed Notes Due
|
|
|
|
|
2011 and 2010
|
|
|
|
annual rate
|
|
2012 and there are no
|
|
|
|
|
amounting to
|
|
|
|
of 6.45%
|
|
USD Indosat Notes
|
|
|
|
|
US$5,460.78
|
|
|
|
applied on
|
|
outstanding upon such
|
|
|
|
|
(equivalent to
|
|
|
|
the fixed
|
|
redemption, purchase or
|
|
|
|
|
Rp49,518) and
|
|
|
|
US$50,000
|
|
cancellation.
|
|
|
|
|
US$6,072.20
|
|
|
|
principal
|
▪
|
Change of control in the
|
|
|
|
|
(equivalent to
|
|
|
|
|
|
Company.
|
|
|
|
|
Rp54,595),
|
|
|
|
|
▪
|
In May 2013, this loan was
|
|
|
|
|
respectively (Note 20)
|
|
|
|
|
|
fully paid.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
On October 14, 2011, PT Bank UOB Indonesia (one of lenders under the Syndicated U.S. Dollar Loan Facility) transferred its portion of theloan to UOB Limited (another lender under the Syndicated U.S. Dollar Loan Facility), hence the number of lenders became 12.
***
On May 30, 2012, GSI exercised the FX conversion option to convert the loan into U.S. dollar loan of US$50,000. The Company earnedgain from the exercise amounting to Rp5,319which is credited to Gain (Loss) on Change in Fair Value of Derivatives - Net.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
18.
LOANS PAYABLE (continued)
|
Counterparties
|
Loan Type
|
Maturity
|
Amount
|
Interest
|
Remarks
|
|
Structure
|
|
i.
|
BCA
|
§
5-year unsecured credit facility 1
§
Loan drawdowns payable paid annualy
|
September 27,
2012
|
Rp2,000,000
|
§
Year 1: 9.75% p.a
.
§
Year 2: 10.5% p.a.
§
JIBOR + 1.5% p.a.
§
Years 3-5: 3-month JIBOR + 1.5% p.a.
§
Payable quarterly
|
§
Without penalty if the repayment was made after the 24
th
month after the agreement date subject to 7 days prior written notice
§
With penalty of 2% of the prepaid amount for repayment prior to the 24
th
month after the agreement date
§
On June 11, 2012, the Company obtained the consent letter from BCA for the sale of asset transaction (Note 29).
§
In September 2012, this loan was fully paid.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
j.
|
CIMB Niaga
|
▪
|
Investment
|
August 24,
|
Rp75,000
|
▪
|
14.5% p.a
|
▪
|
Permitted only on
|
|
|
|
|
credit facility 6
|
2012
|
|
|
subject to change
|
|
interest payment date
|
|
|
|
|
obtained by
|
|
|
|
by CIMB Niaga
|
|
subject to 15 days’ prior
|
|
|
|
|
Lintasarta
|
|
|
|
depending on the
|
|
written notice.
|
|
|
|
▪
|
Paidquarterly
|
|
|
|
market condition
|
|
Lintasarta may repay
|
|
|
|
|
|
|
|
▪
|
Payable quarterly
|
|
the whole or any part of
|
|
|
|
|
|
|
|
|
|
|
the loan before the due
|
|
|
|
|
|
|
|
|
|
|
date only by using the
|
|
|
|
|
|
|
|
|
|
|
fund from Lintasarta’s
|
|
|
|
|
|
|
|
|
|
|
operational activities.
|
|
|
|
|
|
|
|
|
|
|
Repayment using the
|
|
|
|
|
|
|
|
|
|
|
fund from loans
|
|
|
|
|
|
|
|
|
|
|
obtained from other
|
|
|
|
|
|
|
|
|
|
|
parties is allowed with
|
|
|
|
|
|
|
|
|
|
|
penalty determined by
|
|
|
|
|
|
|
|
|
|
|
CIMB Niaga.
|
|
|
|
|
|
|
|
|
|
▪
|
The loan is
|
|
|
|
|
|
|
|
|
|
|
collateralized by all
|
|
|
|
|
|
|
|
|
|
|
equipment (Note 8)
|
|
|
|
|
|
|
|
|
|
|
purchased from the
|
|
|
|
|
|
|
|
|
|
|
proceeds of credit
|
|
|
|
|
|
|
|
|
|
|
facility.
|
|
|
|
|
|
|
|
|
|
▪
|
In April 2012, this
|
|
|
|
|
|
|
|
|
|
|
loan was fully paid.
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
18.
LOANS PAYABLE (continued)
The Scheduled Principal Payments from 2014 of all the loans payable as of September 30, 2013 are as follows:
|
|
|
|
|
Twelve months ending September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 and
|
|
|
|
|
|
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Thereafter
|
|
Total
|
|
In rupiah
|
|
|
|
|
|
|
|
|
|
|
|
|
BCA - revolving
|
|
|
|
|
|
|
|
|
|
|
|
|
|
time loan
|
1,500,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,500,000
|
|
BSMI - revolving
|
|
|
|
|
|
|
|
|
|
|
|
|
|
time loan
|
-
|
|
-
|
|
650,000
|
|
-
|
|
-
|
|
650,000
|
|
Sub-total
|
1,500,000
|
|
-
|
|
650,000
|
|
-
|
|
-
|
|
2,150,000
|
|
In U.S. dollar
|
|
|
|
|
|
|
|
|
|
|
|
|
SEK, Sweden
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(US$158,928.57)
|
522,585
|
|
522,585
|
|
522,585
|
|
228,113
|
|
49,770
|
|
1,845,638
|
|
HSBC France
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(US$120,832.02)
|
233,870
|
|
233,870
|
|
233,870
|
|
233,870
|
|
467,743
|
|
1,403,223
|
|
9-Year Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Facility
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(US$14,194.43)
|
47,097
|
|
47,097
|
|
47,097
|
|
23,548
|
|
-
|
|
164,839
|
|
Sub-total
|
803,552
|
|
803,552
|
|
803,552
|
|
485,531
|
|
517,513
|
|
3,413,700
|
|
Total
|
2,303,552
|
|
803,552
|
|
1,453,552
|
|
485,531
|
|
517,513
|
|
5,563,700
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
unamortized debt issuance costs and consent solicitation fees
|
|
(84,997)
|
|
|
|
|
|
|
Net
|
|
5,478,703
|
All loans are neither collateralized by any specific Group assets nor guaranteed by other parties, except for the assets that have been specifically used as security in Note 18j.
The total amortization of debt issuance, discount and consent solicitation fees on the loans for the nine-month periods ended September 30, 2013 and 2012 amounted to Rp30,021 and Rp52,872, respectively (Note 28).
As of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, the Group has complied with all financial ratios required to be maintained under the loan agreements.
19. BONDS PAYABLE
This account consists of the following:
January 1,
2012 /
September 30,
December 31,
December 31,
2013
2012
2011
a. Guaranteed Notes Due 2020 - net of unamortized
notes issuance cost of Rp66,683in 2013,
Rp73,454 in 2012 and Rp58,420 in 2011 and
discount of Rp20,863in 2013, Rp23,154 in 2012
and Rp26,208 in 2011
7,460,904
6,188,892
5,809,572
b. Eighth Indosat Bonds in Year 2012 with Fixed Rates
- net of unamortized bonds issuance cost and
consent solicitation fees of Rp7,898 in 2013
and Rp8,478 in 2012
2,692,102
2,691,522
-
c. Fifth Indosat Bonds in Year 2007 with Fixed Rates
- net of unamortized bonds issuance cost and
consent solicitation fees of Rp5,281in 2013,
Rp7,061 in 2012 and Rp9,102 in 2011
2,594,719
2,592,939
2,590,898
d. Seventh Indosat Bonds in Year 2009 with Fixed Rates
- net of unamortized bonds issuance cost of
Rp2,595in 2013, Rp3,454 in 2012 and
Rp4,442 in 2011
1,297,405
1,296,546
1,295,558
e. Indosat Sukuk Ijarah II in Year 2007 - net of
unamortized bonds issuance cost and consent
solicitation fees of Rp340 in 2013, Rp698 in 2012
and Rp1,124 in 2011
399,660
399,302
398,876
f. Sixth Indosat Bonds in Year 2008 with Fixed Rates
- net of unamortized bonds issuance cost and
consent solicitation fees of Rp794in 2013,
Rp1,609 in 2012 and Rp3,603 in 2011
319,206
1,078,391
1,076,397
g. Indosat Sukuk Ijarah V in Year 2012 - net of
unamortized bonds issuance cost and consent
solicitation fees of Rp847in 2013 and Rp930 in 2012
299,153
299,070
-
h. Indosat Sukuk Ijarah IV in Year 2009 - net of
unamortized bonds issuance cost and consent
solicitation fees of Rp516 in 2013, Rp627 in 2012
and Rp754 in 2011
199,484
199,373
199,246
i. Indosat Sukuk Ijarah III in Year 2008 - net of
unamortized bonds issuance cost and consent
solicitation fees of Rp353 in 2012 and
Rp1,545 in 2011
-
569,647
568,455
j. Second Indosat Bonds in Year 2002 with Fixed and
Floating Rates - net of unamortized consent
solicitation fees of Rp649
-
-
199,351
k. Limited Bonds II issued by Lintasarta
*
-
-
25,000
l. Limited Bonds I issued by Lintasarta
**
-
-
16,989
Total bonds payable
15,262,633
15,315,682
12,180,342
Less current maturities (net of unamortized bonds
issuance cost and consent solicitation fees totalling
Rp1,382 in 2013 and Rp825 in 2012)
1,628,618
1,329,175
41,989
Long-term portion
13,634,015
13,986,507
12,138,353
*
After elimination of Limited Bonds II amounting to Rp35,000 issued to the Company on January 1, 2010 and December 31, 2010. Lintasarta made early repayment of such amount on December 29, 2011.
**
After elimination of Limited Bonds I amounting to Rp9,564 issued to the Company on January 1, 2010 and December 31, 2010. Lintasarta made early repayment of such amount on December 29, 2011.
19. BONDS PAYABLE (continued)
Bond
|
Nominal
Amount
|
Interest
|
Maturity
|
Remarks
|
a. GuaranteedNotes Due 2020
|
US$650,000
|
§
7.375% p.a.
§
Payable semi-annually
|
July 29, 2020
|
The notes are redeemable at the option of IPBV:
§
Prior to July 29, 2013, the Issuer may redeem up to a maximum of 35% of the original aggregate Notes issued with the proceeds of one or more Public Offerings at a redemption price equal to 107.375% of the principal amount.
§
Prior to July 29, 2015, the Issuer will be entitled at its option to redeem all or any portion of the Notes at a redemption price equal to 100% of the principal amount of the Notes plus the Applicable Premium.
§
On and after July 29, 2015, the issuer may redeem the Notes in whole or in part at any time and from time to time at certain redemption prices.
§
At any time, upon not less than 30
days nor more than 60 days prior notice, the Issuer may redeem the Notes at a price equal to 100% of the principal amount thereof, plus any accrued and unpaid interest to (but not including) the redemption date and any additional amounts, in the event of certain changes affecting withholding taxes in Indonesia and the Netherlands.
§
Upon a change in control of IPBV,
the holder of the notes has the right to require IPBV to repurchase all or any part of such holders notes.
§
Based on latest rating reports (released in July, August and June 2013), the notes have BB+ (stable outlook), Ba1 (stable outlook) and BBB (stable outlook) ratings from Standard & Poors (S&P), Moodys Investors Service (Moodys) and Fitch Ratings (Fitch), respectively.
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
19. BONDS PAYABLE (continued)
|
Bond
|
Nominal
|
Interest
|
Maturity
|
Remarks
|
|
Amount
|
|
b. Eighth Indosat Bonds in Year 2012
|
|
§
Series A
|
Rp1,200,000
|
§
8.625% p.a.
§
Payable quarterly
|
June 27, 2019
|
§
The Company can buy back part or all of the bonds, after the 1
st
anniversary of the bonds, at market price temporarily or as an early settlement.
§
Based on the latest rating report released in March 2013, the bondshave
id
AA+ rating from PTPemeringkat Efek Indonesia (Pefindo).
|
|
§
Series B
|
Rp1,500,000
|
§
8.875% p.a.
§
Payable quarterly
|
June 27, 2022
|
c. Fifth Indosat Bonds in Year 2007
|
|
§
Series A
|
Rp1,230,000
|
§
10.20% p.a.
§
Payable quarterly
|
May 29, 2014
|
§
The Company can buy back part or all of the bonds, after the 1
st
anniversary of the bonds, at market price temporarily or as an early settlement.
§
Based on the latest rating report released in March 2013, the bondshave
id
AA+ rating from Pefindo.
|
|
§
Series B
|
Rp1,370,000
|
§
10.65% p.a.
§
Payable quarterly
|
May 29, 2017
|
d. Seventh Indosat Bonds in Year 2009
|
|
§
Series A
|
Rp700,000
|
§
11.25% p.a.
§
Payable quarterly
|
December 8, 2014
|
§
The Company can buy back part or all of the bonds, after the 1
st
anniversary of the bonds, at market price temporarily or as an early settlement.
§
Based on the latest rating report released in March 2013, the bondshave
id
AA+ rating from Pefindo.
|
|
§
Series B
|
Rp600,000
|
§
11.75% p.a.
§
Payable quarterly
|
December 8, 2016
|
e.
Indosat Sukuk Ijarah II in Year 2007 (Sukuk Ijarah II)
|
Rp400,000
|
§
Bondholders are entitled to annual fixed Ijarah return (
Cicilan Imbalan Ijarah
) totaling Rp40,800, payable on a quarterly basis starting August 29, 2007 up to May 29, 2014.
|
May 29, 2014
|
§
The Company can buy back part or all of the bonds, after the 1
st
anniversary of the bonds, at market price.
§
Based on the latest rating report released in March 2013, the bonds have
id
AA+
(sy)
rating from Pefindo.
|
|
e.
Sixth Indosat Bonds in Year 2008
|
|
§
Series A
|
Rp760,000
|
§
10.25% p.a.
§
Paid quarterly
|
April 9, 2013
|
§
The Company had the option to buy back part or all of the bonds, after the 1
st
anniversary of the bonds, at market price temporarily or as an early settlement.
§
Based on the rating report released in March 2013, the bonds had
id
AA+ rating from Pefindo.
§
On April 9, 2013, the Company paid the series A bonds in full.
|
|
§
Series B
|
Rp320,000
|
§
10.80% p.a.
§
Payablequarterly
|
April 9, 2015
|
e.
Indosat Sukuk Ijarah V in Year 2012 (Sukuk Ijarah V)
|
Rp300,000
|
§
Bondholders are entitled to annual fixed Ijarah return (Cicilan Imbalan Ijarah) totaling Rp25,875, payable on a quarterly basis starting September 27, 2012 up to June 27, 2019.
|
June 27, 2019
|
§
The Company can buy back part or all of the bonds, after the 1
st
anniversary of the bonds, at market price.
§
Based on the latest rating report released in March 2013, the bonds have
id
AA+
(sy)
rating from Pefindo.
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
19. BONDS PAYABLE (continued)
|
Bond
|
Nominal
|
Interest
|
Maturity
|
Remarks
|
|
Amount
|
|
e.
Indosat Sukuk Ijarah IV in Year 2009 (Sukuk Ijarah IV)
|
|
§
Series A
|
Rp28,000
|
§
Bondholders are entitled to annual fixed ijarah return (
Cicilan Imbalan Ijarah
) totaling Rp3,150, payable on a quarterly basis starting March 8, 2010 up to December 8, 2014.
|
December 8, 2014
|
§
The Company can buy back part or all of the bonds, after the 1
st
anniversary of the bonds, at market price.
§
Based on the latest rating report released in March 2013, the bonds have
id
AA+
(sy)
rating from Pefindo.
|
|
§
Series B
|
Rp172,000
|
§
Bondholders are entitled to annual fixed ijarah return (
Cicilan Imbalan Ijarah
) totaling Rp20,210, payable on a quarterly basis starting March 8, 2010 up to December 8, 2016.
|
December 8, 2016
|
e.
Indosat Sukuk Ijarah III in Year 2008 (Sukuk Ijarah III)
|
Rp570,000
|
§
Bondholders were entitled to annual fixed Ijarah return (
Cicilan Imbalan Ijarah
) totaling Rp58,425, paid on a quarterly basis starting July 9, 2008 up to April 9, 2013.
|
April 9, 2013
|
§
The Company had the option to buy back part or all of the bonds, after the 1
st
anniversary of the bonds, at market price.
§
Based on the rating report released in March 2013, the bonds had
id
AA+
(sy)
(stable outlook) rating from Pefindo.
§
On April 9, 2013, the Company paid the bonds in full.
|
|
e.
Second Indosat Bonds in Year 2002 - Series B
|
Rp200,000
|
§
16% p.a.
§
Paid quarterly
|
November 6, 2032
|
§
The Company had call option on the 10
th
, 15
th
, 20
th
and 25
th
anniversaries of the bonds at 101% of the bonds nominal value and the bondholder had sell option if the rating of the bonds decreased to
id
AA- or lower or on the 15
th
, 20
th
and 25
th
anniversaries of the bonds.
§
Based on the rating report released in June 2012, the bonds had
id
AA+rating from Pefindo.
§
On November 6, 2012, the Company exercised the right to redeem in full the remaining outstandingSecond Indosat Bonds at 101% of the nominal value of the bonds.
|
|
k.
Limited Bonds II issued by Lintasarta (amended on August 25, 2009)
|
Rp66,150, with the remaining amount of Rp60,000 since June 14, 2009
|
§
Average 3-month rupiah time deposit rates with Mandiri, BNI, BRI and BTN, plus a fixed premium of 3%. The maximum limit of floating rates was 19% and the minimum limit was 11% p.a. and starting June 14, 2009, the minimum limit increased to 12.75%.
§
Paid quarterly
|
June 14, 2009 extended to
June 14, 2012
|
§
On February 29, 2012, Lintasarta paid these bonds in full.
|
|
l.
Limited Bonds I issued by Lintasarta (amended on August 25, 2009)
|
Rp34,856, with the remaining amount of Rp26,553 since June 2, 2009
|
§
Average 3-month rupiah time deposit rates with Mandiri, BNI, BRI and BTN, plus a fixed premium of 3%. The maximum limit of floating rates was 19% and the minimum limit was 11% p.a. and starting June 14, 2009, the minimum limit increased to 12.75%.
§
Paid quarterly
|
June 2, 2009 extended to
June 2, 2012
|
§
On January 31, 2012, Lintasarta paid these bonds in full.
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
19. BONDS PAYABLE (continued)
The scheduled principal payments of all the bonds payable outstanding as of September 30, 2013 are as follows:
|
|
|
|
|
Twelve months ending September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 and
|
|
|
|
|
|
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
thereafter *
|
|
Total
|
|
I
n U.S. dollar
|
|
|
|
|
|
|
|
|
|
|
|
|
Guaranteed Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due 2020*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(US$650,000)
|
-
|
|
-
|
|
-
|
|
-
|
|
7,548,450
|
|
7,548,450
|
|
In Rupiah
|
|
|
|
|
|
|
|
|
|
|
|
|
Eighth Indosat Bonds*
|
-
|
|
-
|
|
-
|
|
-
|
|
2,700,000
|
|
2,700,000
|
|
Fifth Indosat Bonds*
|
1,230,000
|
|
-
|
|
-
|
|
1,370,000
|
|
-
|
|
2,600,000
|
|
Seventh Indosat Bonds*
|
-
|
|
700,000
|
|
-
|
|
600,000
|
|
-
|
|
1,300,000
|
|
SukukIjarah II*
|
400,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
400,000
|
|
Sixth Indosat Bonds*
|
-
|
|
320,000
|
|
-
|
|
-
|
|
-
|
|
320,000
|
|
SukukIjarah V*
|
-
|
|
-
|
|
-
|
|
-
|
|
300,000
|
|
300,000
|
|
SukukIjarah IV*
|
-
|
|
28,000
|
|
-
|
|
172,000
|
|
-
|
|
200,000
|
|
Sub-total
|
1,630,000
|
|
1,048,000
|
|
-
|
|
2,142,000
|
|
3,000,000
|
|
7,820,000
|
|
Total
|
1,630,000
|
|
1,048,000
|
|
-
|
|
2,142,000
|
|
10,548,450
|
|
15,368,450
|
|
Less:
|
|
|
-
|
unamortized notes issuance cost
|
(66,683)
|
|
-
|
unamortized notes discount
|
(20,863)
|
|
-
|
unamortized bonds issuance cost and consent solicitation fees
|
(18,271)
|
|
Net
|
|
15,262,633
|
*
Refer to previous discussion on early repayment options for each bond/note.
All bonds are neither collateralized by any specific Group assets nor guaranteed by other parties. All of the Groups assets, except for the assets that have been specifically used as security (Note 18j) to its other creditors, are used as pari-passu security to all of the Groups other liabilities including the bonds.
On June 5, 2012, the Company and IPBV entered into a supplemental indenture with Bank of New York Mellon, as a trustee, for the IPBV Guaranteed Notes Due 2020 based on the consent letter received on May 21, 2012 representing 93.21% of the notesholders. The supplemental indenture included the amendment of certain definition under the previous Guaranteed Notes Due 2020 indentures and the approval for the sale of asset transactions (Note 29).
On June 8, 2012, the Company received the consent letter from BRI, as a trustee, for the Eighth Indosat Bonds, Seventh Indosat Bonds, Sixth Indosat Bonds, Fifth Indosat Bonds, Second Indosat Bonds and Sukuk Ijarah V, IV, III and II regarding the Companys sale of asset transactions (Note 29).
The total amortization of bonds issuance cost, consent solicitation fees, notes issuance cost and discount for the nine-month periods ended September 30, 2013 and 2012 amounted to Rp14,001 and Rp17,643, respectively (Note 28).
As of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, the Group has complied with all financial ratios required to be maintained under the Notes Indenture and Trustee Agreements.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
20. DERIVATIVES
The Company entered into several swap and forward contracts. Listed below is information related to the contracts and their fair values (net of credit risk adjustment) as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011:
|
|
|
|
|
|
|
Fair Value (Rp)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2012 /
|
|
|
|
|
|
Notional
|
|
September 30, 2013
|
|
December 31, 2012
|
|
December 31, 2011
|
|
|
|
|
|
Amount
|
|
Receivable
|
|
Payable
|
|
Receivable
|
|
Payable
|
|
Receivable
|
|
Payable
|
|
|
|
|
|
(US$)
|
|
|
|
|
|
|
|
Cross Currency Swap Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
StandChart
(1)
|
25,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,981
|
|
b.
|
StandChart
(3)
|
25,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,620
|
|
-
|
|
c.
|
StandChart
(4)
|
25,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12,608
|
|
-
|
|
d.
|
MLIB
(2)
|
25,000 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
-
|
|
7,919
|
|
-
|
|
3,639
|
|
-
|
|
e.
|
DBS
(2)
|
25,000 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
-
|
|
7,962
|
|
-
|
|
4,271
|
|
-
|
|
f.
|
HSBC, Jakarta Branch
(8)
|
10,000
|
|
-
|
|
-
|
|
2,631
|
|
-
|
|
-
|
|
-
|
|
g.
|
Barclays Bank PLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Barclays)
(8)
|
14,500
|
|
-
|
|
-
|
|
3,295
|
|
-
|
|
-
|
|
-
|
|
h.
|
HSBC, Jakarta Branch
(9)
|
14,000
|
|
-
|
|
-
|
|
4,338
|
|
-
|
|
-
|
|
-
|
|
i.
|
HSBC, Jakarta Branch
(10)
|
11,000
|
|
-
|
|
-
|
|
3,762
|
|
-
|
|
-
|
|
-
|
|
Sub-total
|
|
|
-
|
|
-
|
|
29,907
|
|
-
|
|
22,138
|
|
6,981
|
|
Interest Rate Swap Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
j.
|
HSBC, Jakarta Branch
|
27,037 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
10,041
|
|
-
|
|
11,613
|
|
-
|
|
13,254
|
|
k.
|
HSBC, Jakarta Branch
|
44,200 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
27,665
|
|
-
|
|
38,260
|
|
-
|
|
35,370
|
|
l.
|
GSI
(11)
|
100,000
|
|
-
|
|
-
|
|
-
|
|
25,287
|
|
-
|
|
60,869
|
|
m.
|
DBS
(11)
|
25,000 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
-
|
|
-
|
|
1,391
|
|
-
|
|
4,174
|
|
n.
|
DBS
(12)
|
25,000 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
-
|
|
-
|
|
1,244
|
|
-
|
|
3,678
|
|
o.
|
Bank of Tokyo MUFJ
|
25,000 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(BTMUFJ)
(13)
decreasing amount
|
|
-
|
|
-
|
|
-
|
|
894
|
|
-
|
|
2,649
|
|
p.
|
BTMUFJ
(13)
|
25,000 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
-
|
|
-
|
|
804
|
|
-
|
|
2,347
|
|
q.
|
BTMUFJ
(13)
|
25,000 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
-
|
|
-
|
|
735
|
|
-
|
|
2,118
|
|
r.
|
StandChart
(13)
|
40,000 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
-
|
|
-
|
|
1,013
|
|
-
|
|
2,692
|
|
s.
|
DBS
(6)
|
26,000 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,486
|
|
t.
|
DBS
(7)
|
26,000 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,282
|
|
u.
|
BTMUFJ
(5)
|
36,500 with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
decreasing amount
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,289
|
|
Sub-total
|
|
|
-
|
|
37,706
|
|
-
|
|
81,241
|
|
-
|
|
131,208
|
(1)
contract entered into January 2006 and settled in June 2012
(2)
In June 2013, December 2012, June 2012 and December 2011, the Company used the option to exercise US$8,750 in June 2013, US$2,000 in December 2012, US$2,000 in June 2012 and US$6,000 in December 2011 of the contract amount.
(3)
contract entered into in March 2006 and settled in June 2012
(4)
contract entered into in May 2006 and settled in June 2012
(5)
contract entered into in March 2009 and settled in June 2012
(6)
contract entered into in December 2008 and settled in December 2012
(7)
contract entered into in January 2009 and settled in December 2012
(8)
contract entered into in August 2012 and settled in January 2013
(9)
contract entered into in August 2012 and settled in February 2013
(10)
contract entered into in August 2012 and settled in March 2013
(11)
contract entered into in September 2008 and settled in June 2013
(12)
contract entered into in October 2008 and settled in June 2013
(13
)
contract entered into in December 2008 and settled in June 2013
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
20. DERIVATIVES (continued)
|
|
|
|
|
|
|
|
Fair Value (Rp)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2012 /
|
|
|
|
|
|
|
Notional
|
|
September 30, 2013
|
|
December 31, 2012
|
|
December 31, 2011
|
|
|
|
|
|
|
Amount
|
|
Receivable
|
|
Payable
|
|
Receivable
|
|
Payable
|
|
Receivable
|
|
Payable
|
|
|
|
|
|
|
(US$)
|
|
|
|
|
|
|
|
Currency Forward Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
v.
|
HSBC, Jakarta Branch
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,231
|
|
-
|
|
w.
|
JP Morgan
|
2,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,011
|
|
-
|
|
x.
|
StandChart
|
7,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,902
|
|
-
|
|
y.
|
JP Morgan
|
9,500
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,832
|
|
-
|
|
z.
|
HSBC, Jakarta Branch
|
6,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,222
|
|
-
|
|
aa.
|
HSBC, Jakarta Branch
|
7,500
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,021
|
|
-
|
|
ab.
|
JP Morgan
|
13,750
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,771
|
|
-
|
|
ac.
|
StandChart
|
8,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,542
|
|
-
|
|
ad.
|
StandChart
|
6,600
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,666
|
|
-
|
|
ae.
|
StandChart
|
3,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,486
|
|
-
|
|
af.
|
DBS
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,010
|
|
-
|
|
ag.
|
ING
|
7,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,538
|
|
-
|
|
ah.
|
DBS
|
7,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,528
|
|
-
|
|
ai.
|
DBS
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,497
|
|
-
|
|
aj.
|
JP Morgan
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,523
|
|
-
|
|
ak.
|
HSBC, Jakarta Branch
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,909
|
|
-
|
|
al.
|
ING
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,330
|
|
-
|
|
am.
|
ING
|
13,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,960
|
|
-
|
|
an.
|
DBS
|
13,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,859
|
|
-
|
|
ao.
|
ING
|
13,500
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,386
|
|
-
|
|
ap.
|
ING
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,478
|
|
-
|
|
aq.
|
ING
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,508
|
|
-
|
|
ar.
|
GSI
|
8,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,558
|
|
-
|
|
as.
|
GSI
|
13,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,550
|
|
-
|
|
at.
|
Royal Bank of Scotland (RBS)
|
12,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,370
|
|
-
|
|
au.
|
GSI
|
12,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,185
|
|
-
|
|
av.
|
GSI
|
12,500
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,338
|
|
-
|
|
aw.
|
ING
|
23,000
|
|
-
|
|
-
|
|
4,137
|
|
-
|
|
-
|
|
-
|
|
ax.
|
GSI
|
13,000
|
|
-
|
|
-
|
|
3,278
|
|
-
|
|
-
|
|
-
|
|
ay.
|
BNP Paribas
|
20,000
|
|
-
|
|
-
|
|
2,981
|
|
-
|
|
-
|
|
-
|
|
az.
|
Barclays
|
20,000
|
|
-
|
|
-
|
|
3,254
|
|
-
|
|
-
|
|
-
|
|
ba.
|
BNP Paribas
|
20,000
|
|
-
|
|
-
|
|
3,675
|
|
-
|
|
-
|
|
-
|
|
bb.
|
JP Morgan
|
20,000
|
|
-
|
|
-
|
|
4,427
|
|
-
|
|
-
|
|
-
|
|
bc.
|
ING
|
15,000
|
|
-
|
|
-
|
|
2,956
|
|
-
|
|
-
|
|
-
|
|
bd.
|
Barclays
|
15,000
|
|
-
|
|
-
|
|
2,166
|
|
-
|
|
-
|
|
-
|
|
be.
|
DBS
|
15,000
|
|
-
|
|
-
|
|
1,983
|
|
-
|
|
-
|
|
-
|
|
bf.
|
DBS
|
20,000
|
|
-
|
|
-
|
|
2,621
|
|
-
|
|
-
|
|
-
|
|
bg.
|
JP Morgan
|
25,000
|
|
-
|
|
-
|
|
77
|
|
-
|
|
-
|
|
-
|
|
bh.
|
DBS
|
15,000
|
|
-
|
|
-
|
|
140
|
|
-
|
|
-
|
|
-
|
|
bi.
|
Barclays
|
26,000
|
|
-
|
|
-
|
|
1,850
|
|
-
|
|
-
|
|
-
|
|
bj.
|
JP Morgan
|
30,000
|
|
-
|
|
-
|
|
2,231
|
|
-
|
|
-
|
|
-
|
|
bk.
|
BNP Paribas
|
25,000
|
|
-
|
|
-
|
|
2,356
|
|
-
|
|
-
|
|
-
|
|
bl.
|
ING
|
15,000
|
|
-
|
|
-
|
|
1,615
|
|
-
|
|
-
|
|
-
|
|
bm.
|
StandChart
|
12,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bn.
|
BTMU Singapore
|
13,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bo.
|
BNP Paribas
|
11,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bp.
|
ING
|
28,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bq.
|
BTMU Singapore
|
20,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
br.
|
BTMU Singapore
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bs.
|
BTMU Singapore
|
13,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bt.
|
DBS
|
20,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bu.
|
DBS
|
20,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bv.
|
Barclays
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bw.
|
StandChart
|
15,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bx.
|
CIMB Niaga
|
15,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
by.
|
JP Morgan
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
bz.
|
StandChart
|
20,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
ca.
|
DBS
|
18,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cb.
|
BNP Paribas
|
20,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cc.
|
Barclays
|
20,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cd.
|
ING
|
20,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
ce.
|
Natixis
|
15,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cf.
|
JP Morgan
|
15,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cg.
|
JP Morgan
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
ch.
|
JP Morgan
|
15,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
ci.
|
CIMB Niaga
|
9,750
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cj.
|
BNP Paribas
|
12,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
ck.
|
Barclays
|
25,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cl.
|
CIMB Niaga
|
20,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
20. DERIVATIVES (continued)
|
|
|
|
|
|
|
|
Fair Value (Rp)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2012 /
|
|
|
|
|
|
|
Notional
|
|
September 30, 2013
|
|
December 31, 2012
|
|
December 31, 2011
|
|
|
|
|
|
|
Amount
|
|
Receivable
|
|
Payable
|
|
Receivable
|
|
Payable
|
|
Receivable
|
|
Payable
|
|
|
|
|
|
|
(US$)
|
|
|
|
|
|
|
|
Currency Forward Contracts (continued):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cm.
|
CIMB Niaga
|
20,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cn.
|
BNP Paribas
|
25,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
co.
|
DBS
|
20,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cp.
|
Danareksa
|
10,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cq.
|
Merrill Lynch
|
12,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cr.
|
Merrill Lynch
|
14,500
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cs.
|
Merrill Lynch
|
12,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
ct.
|
DBS
|
25,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cu.
|
StandChart
|
12,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cv.
|
BTMU
|
12,000
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cw.
|
DBS
|
12,500
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cx.
|
Danareksa
|
9,500
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cy.
|
CIMB Niaga
|
11,000
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
cz.
|
CIMB Niaga
|
21,000
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
da.
|
StandChart
|
15,000
|
19,402
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
db.
|
CIMB Niaga
|
12,000
|
17,614
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dc.
|
CIMB Niaga
|
12,000
|
17,579
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dd.
|
BTMU
|
10,000
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
de.
|
DBS
|
5,000
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
df.
|
Merrill Lynch
|
13,000
|
847
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dg.
|
CIMB Niaga
|
9,500
|
2,255
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dh.
|
Barclays
|
14,000
|
-
|
|
1,141
|
|
-
|
|
-
|
|
-
|
|
-
|
|
di.
|
BNP Paribas
|
9,500
|
-
|
|
145
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dj.
|
BNP Paribas
|
10,000
|
1,715
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dk.
|
Barclays
|
10,000
|
2,429
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dl.
|
BTMU
|
10,000
|
6,005
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dm.
|
Barclays
|
10,000
|
2,624
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dn.
|
BTMU
|
10,000
|
6,137
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
do.
|
BNP Paribas
|
10,000
|
6,795
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dp.
|
Barclays
|
10,000
|
3,071
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dq.
|
JP Morgan
|
10,000
|
2,392
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
dr.
|
BTMU
|
10,000
|
5,749
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
94,614
|
|
1,286
|
|
39,747
|
|
-
|
|
137,211
|
|
-
|
|
Total
|
|
94,614
|
|
38,992
|
|
69,654
|
|
81,241
|
|
159,349
|
|
138,189
|
The net changes in fair value of the swap contracts, currency forward contracts and embedded derivative, swap income or cost, termination income or cost, and settlement of derivative instruments totaling Rp168,291 and (Rp24,682) for the nine-month periods ended September 30, 2013 and 2012, respectively, were credited (charged) to Gain(Loss) on Change in Fair Value of Derivatives - Net, which is presented in profit or loss.
20. DERIVATIVES (continued)
The following are the details of the contracts:
Cross Currency Swap Contracts
No.
|
Counter-parties
|
Contract Period and
Swap Amount
|
Annual Swap Premium Rate
|
Swap
Premium Payment Date
|
Amount of Swap Premium Paid / Amortized (Rp)
|
2013
|
2012
|
a.
|
StandChart
(1)
|
January 11, 2006 - June 22, 2012
Swap Rp236,250 for US$25,000
|
4.78% of US$25,000
|
Every June 22 and
December 22
|
-
|
5,754
|
b.
|
StandChart
(2)
|
March 15, 2006 - June 22, 2012
Swap Rp228,550 for US$25,000
|
3.75% of US$25,000
|
Every June 22 and
December 22
|
-
|
4,514
|
c.
|
StandChart
(3)
|
May 12, 2006 - June 22, 2012
Swap Rp217,500 for US$25,000
|
3.45% of US$25,000
|
Every June 22 and
December 22
|
-
|
4,154
|
d.
|
MLIB
(4)
|
September 2, 2008 - June 12, 2013.
The Company will receive the following:
·
zero amount if the IDR/USD spot rate at termination date is less than or equal to Rp8,800 to US$1 (in full amounts)
·
certain U.S. dollar amount as arranged in the contract multiplied by (IDR/USD spot rate - Rp8,800) (in full amount) divided by IDR/USD spot rate if the IDR/USD spot rate at termination date is greater than Rp8,800 but is less than or equal to Rp12,000 to US$1 (in full amounts)
·
certain U.S. dollar amount as arranged in the contract multiplied by (Rp3,200 [in full amount] divided by IDR/USD spot rate) if the IDR/USD spot rate at termination date is greater than Rp12,000 to US$1 (in full amounts)
|
4.10% of US$25,000 up to June 12, 2011, and 4.10% of decreasing U.S. dollar amount as arranged in the contract up to June 12, 2013
|
Every June 12 and
December 12
|
2,223
|
3,114
|
e.
|
DBS
(5)
|
September 10, 2008 - June 12, 2013.
The Company will receive the following:
·
zero amount if the IDR/USD spot rate at the scheduled settlement date is at or less than Rp8,800 to US$1 (in full amounts)
·
certain U.S. dollar amount which is equal to U.S. dollar amount at scheduled settlement date multiplied by (IDR/USD spot rate - Rp8,800) (in full amount) divided by IDR/USD spot rate if the IDR/USD spot rate at settlement date is greater than Rp8,800 and is at or less than Rp12,000 to US$1 (in full amounts)
·
certain U.S. dollar amount which is equal to U.S. dollar amount at scheduled settlement date multiplied by (Rp12,000 - Rp8,800) (in full amounts) divided by IDR/USD spot rate if the IDR/USD spot rate at settlement date is greater than Rp12,000 to US$1 (in full amounts)
|
3.945% of US$25,000 up to June 12, 2011, and 3.945% of decreasing U.S. dollar amount as arranged in the contract up to June 12, 2013
|
Every June 12 and
December 12
|
1,703
|
2,370
|
(1)
On June 22, 2012, this contract expired and the Company received settlement gain on the cross currency swap amounting to Rp575.
(2)
On June 22, 2012, this contract expired and the Company received settlement gain on the cross currency swap amounting to Rp8,275.
(3)
On June 22, 2012, this contract expired and the Company received settlement gain on the cross currency swap amounting to Rp19,325.
(4)
On June 12, 2013, December 12, 2012, June 13, 2012 and December 12, 2011, the Company used the option to exercise US$8,750, US$2,000, US$2,000 and US$6,000 of the contract amount, and received settlement gain from the exercise amounting to US$1,055 or equivalent to Rp10,482 on June 12, 2013, US$186 or equivalent to Rp1,793 on December 12, 2012, US$140 or equivalent to Rp1,325 on June 13, 2012 and US$189 or equivalent to Rp1,716 on December 12, 2011.
(5)
On June 12, 2013, December 12, 2012, June 12, 2012 and December 12, 2011, the Company used the option to exercise US$8,750, US$2,000, US$2,000 and US$6,000 of the contract amount, and received settlement gain from the exercise amounting to US$1,055 or equivalent to Rp10,482 on June 12, 2013, US$186 or equivalent to Rp1,793 on December 12, 2012, US$140 or equivalent to Rp1,324 on June 12, 2012 and US$189 or equivalent to Rp1,716 on December 12, 2011.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
20. DERIVATIVES (continued)
Cross Currency Swap Contracts (continued)
|
No.
|
Counter-
|
|
Contract Period and
|
Annual Swap Premium Rate
|
Swap
|
Amount of Swap Premium Paid /
|
|
|
Premium
|
Amortized (Rp)
|
|
parties
|
|
Swap Amount
|
Payment Date
|
2013
|
2012
|
|
f.
|
HSBC
(6)
|
|
August 23, 2012 - January 23, 2013
|
3.00% of US$10,000
|
Upfront
|
429
|
708
|
|
|
|
Swap Rp96,000 for US$10,000
|
|
premium of
|
|
|
|
|
|
|
|
US$300
|
|
|
|
|
|
|
|
(equivalent to
|
|
|
|
|
|
|
|
Rp2,851)
|
|
|
|
|
|
|
|
which was fully
|
|
|
|
|
|
|
|
paid on August
|
|
|
|
|
|
|
|
27, 2012. The
|
|
|
|
|
|
|
|
premium is
|
|
|
|
|
|
|
|
amortized over
|
|
|
|
|
|
|
|
the contract
|
|
|
|
|
|
|
|
period.
|
|
|
|
g.
|
Barclays
(7)
|
|
August 23, 2012 - January 23, 2013
|
2.94% of US$14,500
|
Upfront
|
609
|
1,006
|
|
|
|
Swap Rp139,200 for US$14,500
|
|
premium of
|
|
|
|
|
|
|
|
US$426
|
|
|
|
|
|
|
|
(equivalent to
|
|
|
|
|
|
|
|
Rp4,052)
|
|
|
|
|
|
|
|
which was fully
|
|
|
|
|
|
|
|
paid on August
|
|
|
|
|
|
|
|
27, 2012. The
|
|
|
|
|
|
|
|
premium is
|
|
|
|
|
|
|
|
amortized over
|
|
|
|
|
|
|
|
the contract
|
|
|
|
|
|
|
|
period.
|
|
|
|
h.
|
HSBC
(8)
|
|
August 23, 2012 - February 25, 2013
|
3.20% of US$14,000
|
Upfront
|
1,282
|
870
|
|
|
|
Swap Rp134,400 for US$14,000
|
|
premium of
|
|
|
|
|
|
|
|
US$448
|
|
|
|
|
|
|
|
(equivalent to
|
|
|
|
|
|
|
|
Rp4,258)
|
|
|
|
|
|
|
which was fully
|
|
|
|
|
|
|
|
paid on August
|
|
|
|
|
|
|
|
27, 2012. The
|
|
|
|
|
|
|
|
premium is
|
|
|
|
|
|
|
|
amortized over
|
|
|
|
|
|
|
|
the contract
|
|
|
|
|
|
|
|
period.
|
|
|
|
i.
|
HSBC
(9)
|
|
August 23, 2012 - March 25, 2013
|
3.70% of US$11,000
|
Upfront
|
1,518
|
687
|
|
|
|
Swap Rp105,600 for US$11,000
|
|
premium of
|
|
|
|
|
|
|
|
US$407
|
|
|
|
|
|
|
|
(equivalent to
|
|
|
|
|
|
|
|
Rp3,868)
|
|
|
|
|
|
|
|
which was fully
|
|
|
|
|
|
|
|
paid on August
|
|
|
|
|
|
|
|
27, 2012. The
|
|
|
|
|
|
|
|
premium is
|
|
|
|
|
|
|
|
amortized over
|
|
|
|
|
|
|
|
the contract
|
|
|
|
|
|
|
|
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
7,764
|
23,177
|
(6)
On January 25, 2013, this contract was terminated and the Company received settlement gain on the cross currency swap amounting to Rp430.
(7)
On February 8, 2013, this contract was terminated and the Company received settlement gain on the cross currency swap amounting to Rp2,204.
(8)
On February 27, 2013, this contract was terminated and the Company received settlement gain on the cross currency swap amounting to Rp1,176.
(9)
On March 27, 2013, this contract was terminated and the Company received settlement gain on the cross currency swap amounting to Rp1,375.
Cross currency swap contract with GSI (contract No. a) is structured to include credit-linkage with the Company as the reference entity and with the Companys (i) bankruptcy, (ii) failure to pay on certain debt obligations or (iii) restructuring of certain debt obligations as the relevant credit events. Upon the occurrence of any of these credit events, the Companys obligations and those of GSI under these swap contracts will be terminated without any further payments or settlements being made by or owed to either party, including a payment by either party of any marked-to-market value of the swap contracts.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
20.
DERIVATIVES (continued)
Interest Rate Swap Contracts
No.
|
Counter-parties
|
Contract Period
|
Annual Interest Swap Rate
|
Swap Income (Expense) Receipt (Payment) Date
|
Amount of Swap Expense Paid (Rp)
|
2013
|
2012
|
j.
|
HSBC
|
April 23, 2008 - November 27, 2016
|
5.42% of US$27,037, the notional amount of which will decrease based on predetermined schedule, in exchange for 6-month U.S. dollar LIBOR plus 1.45% per annum
|
Every April 1 and October 1 up to October 2009, and every May 27 and November 27 up to termination date
|
2,747
|
3,074
|
k.
|
HSBC
|
April 23, 2008 -September 29, 2019
|
4.82% of US$44,200, the notional amount of which will decrease based on predetermined schedule, in exchange for U.S. dollar LIBOR plus 0.35% per annum
|
Every January 28 and July 28 up to July 2009, and every March 29 and September 29 up to termination date
|
5,766
|
12,438
|
l.
|
GSI
(12)
|
September 2, 2008 - June 12, 2013
|
(8.10% - underlyer return) of US$100,000 per annum, in exchange for 6-month U.S. dollar LIBOR plus 1.85% per annum
|
Every June 10 and December 10 up to June 2011, and every June 12 and December 12 up to termination date
|
-
|
21,068
|
m.
|
DBS
(13)
|
September 5, 2008 - June 12, 2013
|
5.625% of US$25,000 per annum, in exchange for 6-month U.S. dollar LIBOR plus 1.85% per annum
|
Every June 10 and December 10 up to December 2010, and every June 12 and December 12 up to termination date
|
-
|
1,811
|
n.
|
DBS
(14)
|
October 23, 2008 - June 12, 2013
|
5.28% of US$25,000, the notional amount of which will decrease based on predetermined schedule, in exchange for 6-month U.S. dollar LIBOR plus 1.85% per annum
|
Every March 25 and September 25 up to March 2011, and
every June 12 and December 12 up to termination date
|
-
|
1,603
|
o.
|
BTMUFJ
(15)
|
December 1, 2008 - June 12, 2013
|
4.46% of US$25,000, the notional amount of which will decrease based on predetermined schedule, in exchange for 6-month U.S. dollar LIBOR plus 1.85% per annum
|
Every March 25 and September 25 up to March 2011, and
every June 12 and December 12 up to termination date
|
-
|
1,111
|
p.
|
BTMUFJ
(16)
|
December 4, 2008 - June 12, 2013
|
4.25% of US$25,000, the notional amount of which will decrease based on predetermined schedule, in exchange for 6-month U.S. dollar LIBOR plus 1.85% per annum
|
Every March 25 and September 25 up to March 2011, and
every June 12 and December 12 up to termination date
|
-
|
985
|
q.
|
BTMUFJ
(17)
|
December 12, 2008 - June 12, 2013
|
4.09% of US$25,000, the notional amount of which will decrease based on predetermined schedule, in exchange for 6-month U.S. dollar LIBOR plus 1.85% per annum
|
Every March 25 and September 25 up to March 2011, and
every June 12 and December 12 up to termination date
|
-
|
889
|
r.
|
StandChart
(18)
|
December 19, 2008 - June 12, 2013
|
3.85% of US$40,000, the notional amount of which will decrease based on predetermined schedule, in exchange for 6-month U.S. dollar LIBOR plus 1.85% per annum
|
Every March 25 and September 25 up to March 2011, and
every June 12 and December 12 up to termination date
|
-
|
1,191
|
s.
|
DBS
(11)
|
December 22, 2008 - December 12, 2012
|
4.02% of US$26,000, the notional amount of which will decrease based on predetermined schedule, in exchange for 6-month U.S. dollar LIBOR plus 1.85% per annum
|
Every March 25 and September 25 up to March 2011, and
every June 12 and December 12 up to termination date
|
-
|
881
|
t.
|
DBS
(11)
|
January 21, 2009 - December 12, 2012
|
3.83% of US$26,000, the notional amount of which will decrease based on predetermined schedule, in exchange for 6-month U.S. dollar LIBOR plus 1.85% per annum
|
Every March 25 and September 25 up to March 2011, and
every June 12 and December 12 up to termination date
|
-
|
762
|
u.
|
BTMUFJ
(10)
|
March 2, 2009 - June 12, 2012
|
4.10% of US$36,500, the notional amount of which will decrease based on predetermined schedule, in exchange for 6-month U.S. dollar LIBOR plus 1.85% per annum
|
Every March 25 and September 25 up to March 2011, and every June 12 and December 12 up to termination date
|
-
|
1,321
|
Total
|
8,513
|
47,134
|
(10)
On June 12, 2012, this contract expired and the Company received zero settlement.
(11)
On December 12, 2012, these contracts expired and the Company received zero settlement.
(12)
On June 12, 2013, this contract expired and the Company paid settlement loss on the interest rate swap amounting to (Rp25,854).
(13)
On June 12, 2013, this contract expired and the Company paid settlement loss on the interest rate swap amounting to (Rp1,406).
(14)
On June 12, 2013, this contract expired and the Company paid settlement loss on the interest rate swap amounting to (Rp1,257).
(15)
On June 12, 2013, this contract expired and the Company paid settlement loss on the interest rate swap amounting to (Rp903).
(16)
On June 12, 2013, this contract expired and the Company paid settlement loss on the interest rate swap amounting to (Rp813).
(17)
On June 12, 2013, this contract expired and the Company paid settlement loss on the interest rate swap amounting to (Rp743).
(18)
On June 12, 2013, this contract expired and the Company paid settlement loss on the interest rate swap amounting to (Rp1,024).
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
20.
DERIVATIVES (continued)
Currency Forward Contracts
|
No.
|
Counter-parties
|
Contract Period
|
IDR/USD Fixing Rate
|
Amount of Settlement Gain/(Loss)
|
|
(Rp)
|
|
(in full amounts)
|
2013
|
2012
|
|
v.
|
HSBC
|
August 10, 2011 - January 24, 2012
|
Rp8,698 to US$1
|
-
|
3,200
|
|
w.
|
JP Morgan
|
August 10, 2011 - January 24, 2012
|
Rp8,696 to US$1
|
-
|
578
|
|
x.
|
StandChart
|
August 10, 2011 - January 24, 2012
|
Rp8,696 to US$1
|
-
|
966
|
|
y.
|
JP Morgan
|
August 11, 2011 - January 24, 2012
|
Rp8,693 to US$1
|
-
|
2,774
|
|
z.
|
HSBC
|
August 11, 2011 - February 28, 2012
|
Rp8,714 to US$1
|
-
|
2,226
|
|
aa.
|
HSBC
|
August 11, 2011 - February 28, 2012
|
Rp8,715 to US$1
|
-
|
2,775
|
|
ab.
|
JP Morgan
|
August 12, 2011 - March 29, 2012
|
Rp8,764 to US$1
|
-
|
5,830
|
|
ac.
|
StandChart
|
August 15, 2011 - May 30, 2012
|
Rp8,785 to US$1
|
-
|
5,495
|
|
ad.
|
StandChart
|
August 15, 2011 - May 30, 2012
|
Rp8,787 to US$1
|
-
|
5,168
|
|
ae.
|
StandChart
|
August 16, 2011 - June 12, 2012
|
Rp8,788 to US$1
|
-
|
5,280
|
|
af.
|
DBS
|
August 19, 2011 - January 27, 2012
|
Rp8,708 to US$1
|
-
|
3,173
|
|
ag.
|
ING
|
August 19, 2011 - January 27, 2012
|
Rp8,706 to US$1
|
-
|
2,235
|
|
ah.
|
DBS
|
August 19, 2011 - January 27, 2012
|
Rp8,705 to US$1
|
-
|
2,242
|
|
ai.
|
DBS
|
August 19, 2011 - June 12, 2012
|
Rp8,819 to US$1
|
-
|
6,430
|
|
aj.
|
JP Morgan
|
August 19, 2011 - June 12, 2012
|
Rp8,826 to US$1
|
-
|
6,365
|
|
ak.
|
HSBC
|
August 19, 2011 - June 12, 2012
|
Rp8,832 to US$1
|
-
|
6,160
|
|
al.
|
ING
|
August 22, 2011 - January 12, 2012
|
Rp8,662 to US$1
|
-
|
5,405
|
|
am.
|
ING
|
August 22, 2011 - January 30, 2012
|
Rp8,679 to US$1
|
-
|
4,053
|
|
an.
|
DBS
|
August 22, 2011 - February 28, 2012
|
Rp8,715 to US$1
|
-
|
4,786
|
|
ao.
|
ING
|
August 22, 2011 - March 28, 2012
|
Rp8,737 to US$1
|
-
|
6,070
|
|
ap.
|
ING
|
August 23, 2011 - January 12, 2012
|
Rp8,644 to US$1
|
-
|
5,585
|
|
aq.
|
ING
|
August 23, 2011 - January 12, 2012
|
Rp8,647 to US$1
|
-
|
5,555
|
|
ar.
|
GSI
|
August 23, 2011 - January 12, 2012
|
Rp8,640 to US$1
|
-
|
4,500
|
|
as.
|
GSI
|
August 24, 2011 - January 27, 2012
|
Rp8,645 to US$1
|
-
|
4,940
|
|
at.
|
RBS
|
August 24, 2011 - February 10, 2012
|
Rp8,666 to US$1
|
-
|
3,901
|
|
au.
|
GSI
|
August 24, 2011 - February 29, 2012
|
Rp8,663 to US$1
|
-
|
6,005
|
|
av.
|
GSI
|
August 24, 2011 - February 29, 2012
|
Rp8,675 to US$1
|
-
|
6,107
|
|
aw.
|
ING
|
September 14, 2012 - January 11, 2013
|
Rp9,631 to US$1
|
4,564
|
-
|
|
ax.
|
GSI
|
September 17, 2012 - January 11, 2013
|
Rp9,560 to US$1
|
3,487
|
-
|
|
ay.
|
BNP Paribas
|
November 14, 2012 - February 8, 2013
|
Rp9,683 to US$1
|
20
|
-
|
|
az.
|
Barclays
|
November 29, 2012 - March 4, 2013
|
Rp9,697 to US$1
|
(560)
|
-
|
|
ba.
|
BNP Paribas
|
November 30, 2012 - March 4, 2013
|
Rp9,669 to US$1
|
-
|
-
|
|
bb.
|
JP Morgan
|
December 3, 2012 - March 5, 2013
|
Rp9,638 to US$1
|
862
|
-
|
20.
DERIVATIVES (continued)
Currency Forward Contracts (continued)
|
No.
|
Counter-parties
|
Contract Period
|
IDR/USD Fixing Rate
|
Amount of Settlement Gain/(Loss)
|
|
(Rp)
|
|
(in full amounts)
|
2013
|
2012
|
|
bc.
|
ING
|
December 4, 2012 - March 6, 2013
|
Rp9,666 to US$1
|
658
|
-
|
|
bd.
|
Barclays
|
December 5, 2012 - February 5, 2013
|
Rp9,690 to US$1
|
1,175
|
-
|
|
be.
|
DBS
|
December 5, 2012 - February 5, 2013
|
Rp9,695 to US$1
|
1,102
|
-
|
|
bf.
|
DBS
|
December 7, 2012 - February 11, 2013
|
Rp9,702 to US$1
|
496
|
-
|
|
bg.
|
JP Morgan
|
December 10, 2012 - March 13, 2013
|
Rp9,865 to US$1
|
(4,425)
|
-
|
|
bh.
|
DBS
|
December 10, 2012 - March 12, 2013
|
Rp9,853 to US$1
|
(2,475)
|
-
|
|
bi.
|
Barclays
|
December 12, 2012 - February 11, 2013
|
Rp9,770 to US$1
|
(1,118)
|
-
|
|
bj.
|
JP Morgan
|
December 12, 2012 - February 11, 2013
|
Rp9,765 to US$1
|
(1,140)
|
-
|
|
bk.
|
BNP Paribas
|
December 17, 2012 - March 20, 2013
|
Rp9,775 to US$1
|
(1,425)
|
-
|
|
bl.
|
ING
|
December 18, 2012 - March 20, 2013
|
Rp9,770 to US$1
|
(780)
|
-
|
|
bm.
|
Standchart
|
January 22, 2013 - March 27, 2013
|
Rp9,815 to US$1
|
(1,080)
|
-
|
|
bn.
|
BTMU Singapore
|
January 22, 2013 - May 3, 2013
|
Rp9,834 to US$1
|
(1,457)
|
-
|
|
bo.
|
BNP Paribas
|
February 27, 2013 - May 3, 2013
|
Rp9,721 to US$1
|
11
|
-
|
|
bp.
|
ING
|
February 28, 2013 - May 3, 2013
|
Rp9,697 to US$1
|
701
|
-
|
|
bq.
|
BTMU Singapore
|
February 6, 2013 - May 3, 2013
|
Rp9,709 to US$1
|
937
|
-
|
|
br.
|
BTMU Singapore
|
February 25, 2013 - April 9, 2013
|
Rp9,732 to US$1
|
239
|
-
|
|
bs.
|
BTMU Singapore
|
February 27, 2013 - May 3, 2013
|
Rp9,743 to US$1
|
(273)
|
-
|
|
bt.
|
DBS
|
February 8, 2013 - April 9, 2013
|
Rp9,694 to US$1
|
1,236
|
-
|
|
bu.
|
DBS
|
February 21, 2013 - April 9, 2013
|
Rp9,731 to US$1
|
498
|
-
|
|
bv.
|
Barclays
|
February 28, 2013 - May 13, 2013
|
Rp9,708 to US$1
|
141
|
-
|
|
bw.
|
Standchart
|
February 4, 2013 - May 28, 2013
|
Rp9,795 to US$1
|
105
|
-
|
|
bx.
|
CIMB Niaga
|
February 11, 2013 - May 28, 2013
|
Rp9,729 to US$1
|
1,095
|
-
|
|
by.
|
JP Morgan
|
March 6, 2013 - May 10, 2013
|
Rp9,735 to US$1
|
60
|
-
|
|
bz.
|
Standchart
|
March 11, 2013 - May 28, 2013
|
Rp9,787 to US$1
|
300
|
-
|
|
ca.
|
DBS
|
March 13, 2013 - May 28, 2013
|
Rp9,779 to US$1
|
414
|
-
|
|
cb.
|
BNP Paribas
|
March 14, 2013 - June 5, 2013
|
Rp9,790 to US$1
|
2,387
|
-
|
|
cc.
|
Barclays
|
March 14, 2013 - June 5, 2013
|
Rp9,788 to US$1
|
2,427
|
-
|
|
cd.
|
ING
|
March 15, 2013 - June 3, 2013
|
Rp9,784 to US$1
|
2,506
|
-
|
|
ce.
|
Natixis
|
March 19, 2013 - June 5, 2013
|
Rp9,793 to US$1
|
1,745
|
-
|
|
cf.
|
JP Morgan
|
March 19, 2013 - June 5, 2013
|
Rp9,787 to US$1
|
1,835
|
-
|
|
cg.
|
JP Morgan
|
March 19, 2013 - July 26, 2013
|
Rp9,870 to US$1
|
3,839
|
-
|
|
ch.
|
JP Morgan
|
March 19, 2013 - July 26, 2013
|
Rp9,870 to US$1
|
5,759
|
-
|
|
ci.
|
CIMB Niaga
|
March 20, 2013 - June 17, 2013
|
Rp9,835 to US$1
|
1,014
|
-
|
|
cj.
|
BNP Paribas
|
March 22, 2013 - July 3, 2013
|
Rp9,900 to US$1
|
1,004
|
-
|
|
ck.
|
Barclays
|
March 22, 2013 - July 3, 2013
|
Rp9,899 to US$1
|
2,116
|
-
|
|
cl.
|
CIMB Niaga
|
March 26, 2013 - June 5, 2013
|
Rp9,833 to US$1
|
620
|
-
|
|
cm.
|
CIMB Niaga
|
March 26, 2013 - June 5, 2013
|
Rp9,817 to US$1
|
620
|
-
|
|
cn.
|
BNP Paribas
|
March 27, 2013 - June 5, 2013
|
Rp9,815 to US$1
|
2,362
|
-
|
|
co.
|
DBS
|
March 27, 2013 - June 5, 2013
|
Rp9,814 to US$1
|
840
|
-
|
|
cp.
|
Danareksa
|
March 26, 2013 - June 5, 2013
|
Rp9,834 to US$1
|
220
|
-
|
|
cq.
|
Merrill Lynch
|
April 9, 2013 - July 3, 2013
|
Rp9,807 to US$1
|
3,335
|
-
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
20.
DERIVATIVES (continued)
Currency Forward Contracts (continued)
|
No.
|
Counter-parties
|
Contract Period
|
IDR/USD Fixing Rate
|
Amount of Settlement Gain/(Loss)
|
|
(Rp)
|
|
(in full amounts)
|
2013
|
2012
|
|
cr.
|
Merrill Lynch
|
April 10, 2013 - July 3, 2013
|
Rp9,755 to US$1
|
2,130
|
-
|
|
cs.
|
Merrill Lynch
|
April 25, 2013 - August 2, 2013
|
Rp9,805 to US$1
|
6,172
|
-
|
|
ct.
|
DBS
|
April 26, 2013 - August 2, 2013
|
Rp9,802 to US$1
|
12,937
|
-
|
|
cu.
|
StandChart
|
May 27, 2013 - July 26, 2013
|
Rp9,884 to US$1
|
4,728
|
-
|
|
cv.
|
BTMU
|
May 31, 2013 - July 26, 2013
|
Rp9,929 to US$1
|
4,188
|
-
|
|
cw.
|
DBS
|
June 5, 2013 - August 26, 2013
|
Rp9,965 to US$1
|
11,988
|
-
|
|
cx.
|
Danareksa
|
June 5, 2013 - September 16, 2013
|
Rp9,996 to US$1
|
14,944
|
-
|
|
cy.
|
CIMB Niaga
|
June 12, 2013 - September 16, 2013
|
Rp9,988 to US$1
|
15,785
|
-
|
|
cz.
|
CIMB Niaga
|
June 20, 2013 - July 8, 2013
|
Rp10,015 to US$1
|
5,523
|
-
|
|
da.
|
StandChart
|
June 21, 2013 - November 25, 2013
|
Rp10,240 to US$1
|
-
|
-
|
|
db.
|
CIMB Niaga
|
June 27, 2013 - January 6, 2014
|
Rp10,285 to US$1
|
-
|
-
|
|
dc.
|
CIMB Niaga
|
June 27, 2013 - January 6, 2014
|
Rp10,282 to US$1
|
-
|
-
|
|
dd.
|
BTMU
|
July 15, 2013 - August 16, 2013
|
Rp10,140 to US$1
|
5,830
|
-
|
|
de.
|
DBS
|
July 15, 2013 - August 16, 2013
|
Rp10,125 to US$1
|
2,990
|
-
|
|
df.
|
Merrill Lynch
|
August 21, 2013 - November 21, 2013
|
Rp11,660 to US$1
|
-
|
-
|
|
dg.
|
CIMB Niaga
|
August 22, 2013 - December 20, 2013
|
Rp11,502 to US$1
|
-
|
-
|
|
dh.
|
Barclays
|
August 30, 2013 - October 1, 2013
|
Rp11,375 to US$1
|
-
|
-
|
|
di.
|
BNP Paribas
|
September 9, 2013 - October 11, 2013
|
Rp11,538 to US$1
|
-
|
-
|
|
dj.
|
BNP Paribas
|
September 12, 2013 - January 6, 2014
|
Rp11,720 to US$1
|
-
|
-
|
|
dk.
|
Barclays
|
September 13, 2013 - January 6, 2014
|
Rp11,680 to US$1
|
-
|
-
|
|
dl.
|
BTMU
|
September 13, 2013 - January 6, 2014
|
Rp11,675 to US$1
|
-
|
-
|
|
dm.
|
Barclays
|
September 18, 2013 - January 6, 2014
|
Rp11,660 to US$1
|
-
|
-
|
|
dn.
|
BTMU
|
September 18, 2013 - January 6, 2014
|
Rp11,661 to US$1
|
-
|
-
|
|
do.
|
BNP Paribas
|
September 19, 2013 - January 6, 2014
|
Rp11,199 to US$1
|
-
|
-
|
|
dp.
|
Barclays
|
September 24, 2013 - November 6, 2014
|
Rp11,362 to US$1
|
-
|
-
|
|
dq.
|
JP Morgan
|
September 24, 2013 - November 6, 2014
|
Rp11,407 to US$1
|
-
|
-
|
|
dr.
|
BTMU
|
September 24, 2013 - November 1, 2014
|
Rp11,440 to US$1
|
-
|
-
|
|
|
Total
|
123,212
|
117,804
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
21.
FINANCIAL ASSETS AND LIABILITIES
The Group has various financial assets such as trade and other accounts receivable, and unrestricted and restricted cash and cash equivalents, which arise directly from the Groups operations. The Groups principal financial liabilities, other than derivatives, consist of loans and bonds payable, procurement payable, and trade accounts payable and others. The main purpose of these financial liabilities is to finance the Groups operations. The Company also enters into derivative transactions, primarily cross currency swaps, interest rate swaps, and currency forward contracts, for the purpose of managing its foreign exchange and interest rate exposures emanating from the Companys loans and bonds payable in foreign currencies.
The following table sets forth the carrying values and estimated fair values of the Groups financial instruments that are carried in the consolidated statements of financial position as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011:
|
|
|
|
|
Carrying Amount
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
|
|
Current Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
2,309,074
|
|
3,917,236
|
|
2,224,206
|
|
2,309,074
|
|
3,917,236
|
|
2,224,206
|
|
|
Accounts receivable - trade
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and others - net
|
2,803,764
|
|
2,061,160
|
|
1,505,756
|
|
2,803,764
|
|
2,061,160
|
|
1,505,756
|
|
|
Derivative assets
|
94,614
|
|
69,654
|
|
159,349
|
|
94,614
|
|
69,654
|
|
159,349
|
|
|
Other current financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets - net
|
18,580
|
|
13,382
|
|
24,790
|
|
18,580
|
|
13,382
|
|
24,790
|
|
|
Total current financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
|
5,226,032
|
|
6,061,432
|
|
3,914,101
|
|
5,226,032
|
|
6,061,432
|
|
3,914,101
|
|
|
Non-current Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from related parties
|
7,833
|
|
10,358
|
|
10,654
|
|
6,827
|
|
9,539
|
|
8,967
|
|
|
Other non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financial assets - net
|
1,523,518
|
|
1,543,140
|
|
212,270
|
|
1,522,304
|
|
1,541,388
|
|
207,991
|
|
|
Total non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financial assets
|
1,531,351
|
|
1,553,498
|
|
222,924
|
|
1,529,131
|
|
1,550,927
|
|
216,958
|
|
|
Total Financial Assets
|
6,757,383
|
|
7,614,930
|
|
4,137,025
|
|
6,755,163
|
|
7,612,359
|
|
4,131,059
|
|
|
Current Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank loan
|
1,499,769
|
|
299,529
|
|
1,499,256
|
|
1,499,769
|
|
299,529
|
|
1,499,256
|
|
|
Accounts payable - trade
|
378,491
|
|
231,737
|
|
319,058
|
|
378,491
|
|
231,737
|
|
319,058
|
|
|
Procurement payable
|
3,440,667
|
|
2,737,850
|
|
3,475,862
|
|
3,440,667
|
|
2,737,850
|
|
3,475,862
|
|
|
Accrued expenses
|
1,800,677
|
|
1,961,285
|
|
1,895,613
|
|
1,800,677
|
|
1,961,285
|
|
1,895,613
|
|
|
Deposits from customers
|
47,821
|
|
43,825
|
|
37,265
|
|
47,821
|
|
43,825
|
|
37,265
|
|
|
Derivative liabilities
|
38,992
|
|
81,241
|
|
138,189
|
|
38,992
|
|
81,241
|
|
138,189
|
|
|
Loans payable - current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
portion
|
2,303,418
|
|
2,669,218
|
|
3,300,537
|
|
2,406,510
|
|
2,791,147
|
|
3,927,062
|
|
|
Bonds payable - current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
portion
|
1,628,618
|
|
1,329,175
|
|
41,989
|
|
1,652,080
|
|
1,343,205
|
|
43,137
|
|
|
Other current financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
liabilities
|
372,276
|
|
289,164
|
|
71,828
|
|
372,276
|
|
289,164
|
|
71,828
|
|
|
Total current financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
liabilities
|
11,510,729
|
|
9,643,024
|
|
10,779,597
|
|
11,637,283
|
|
9,778,983
|
|
11,407,270
|
|
|
Non-current Financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to related parties
|
35,170
|
|
42,789
|
|
15,480
|
|
30,653
|
|
39,405
|
|
13,030
|
|
|
Obligations under finance lease
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
net of current maturities
|
3,455,048
|
|
3,101,910
|
|
770,081
|
|
3,455,048
|
|
3,101,910
|
|
770,081
|
|
|
Loans payable -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-current portion
|
3,175,285
|
|
3,703,822
|
|
6,425,779
|
|
2,816,515
|
|
3,331,132
|
|
5,864,354
|
|
|
Bonds payable -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-current portion
|
13,634,015
|
|
13,986,507
|
|
12,138,353
|
|
14,236,202
|
|
15,318,676
|
|
13,334,903
|
|
|
Other non-current financial liabilities
|
43,477
|
|
69,273
|
|
107,433
|
|
42,415
|
|
66,433
|
|
101,068
|
|
|
Total non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financial liabilities
|
20,342,995
|
|
20,904,301
|
|
19,457,126
|
|
20,580,833
|
|
21,857,556
|
|
20,083,436
|
|
|
Total Financial Liabilities
|
31,853,724
|
|
30,547,325
|
|
30,236,723
|
|
32,218,116
|
|
31,636,539
|
|
31,490,706
|
|
21.
FINANCIAL ASSETS AND LIABILITIES (continued)
The fair values of the financial assets and liabilities are presented at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation.
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate such value:
Short-term financial assets and liabilities:
·
Short-term financial instruments with remaining maturities of one year or less (cash and cash equivalents, trade and other accounts receivable, other current financial assets, short-term loan, trade accounts payable, procurement payable, accrued expenses, deposits from customers and other current financial liabilities).
These financial instruments approximate their carrying amounts largely due to their short-term maturities.
·
Derivative financial instruments
Cross currency swap contracts
These derivatives are measured at their fair values using internal valuation techniques as no quoted market prices exist for such instruments. The principal technique adopted to value these instruments is the use of discounted cash flows. The key inputs include interest rate yield curves, foreign exchange rates, Credit Default Spread (CDS), and the spot price of the underlying instruments.
Interest rate swap contracts
These derivatives are measured at their fair values, computed using discounted cash flows based on observable market inputs which include interest rate yield curves and payment dates.
Currency forward contracts
These derivatives are measured at their fair values, computed using discounted cash flows based on observable market inputs which include foreign exchange rates, payment dates and the spot price of the underlying instruments.
Long-term financial assets and liabilities:
·
Long-term fixed-rate and variable-rate financial liabilities (unquoted loans and bonds payable)
The fair value of these financial liabilities is determined by discounting future cash flows using applicable rates from observable current market transactions for instruments with similar terms, credit risk and remaining maturities.
·
Other long-term financial assets and liabilities (due from/to related parties, obligations under finance lease and other non-current financial assets)
Estimated fair value is based on discounted value of future cash flows adjusted to reflect counterparty risk (for financial assets) and the Groups own credit risk (for financial liabilities) and using risk-free rates for similar instruments.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
21.
FINANCIAL ASSETS AND LIABILITIES (continued)
Long-term financial assets and liabilities (continued):
·
Financial instruments quoted in an active market
The fair value of the bonds issued by the Company which are traded in an active market is determined with reference to their quoted market prices.
For equity investments classified as available-for-sale investments, the fair value is determined based on the latest market quotation as published by the Indonesia Stock Exchange as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011.
Fair Value Hierarchy
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. The assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.
The best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active, an entity establishes fair value by using a valuation technique. The objective of using a valuation technique is to establish what the transaction price would have been on the measurement date in an arm's length exchange motivated by normal business considerations. Valuation techniques include using recent arm's length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the entity uses that technique. The chosen valuation technique makes maximum use of market inputs and relies as little as possible on entity-specific inputs. It incorporates all factors that market participants would consider in setting a price and is consistent with accepted economic methodologies for pricing financial instruments. Periodically, the Company calibrates the valuation technique and tests it for validity using prices from any observable current market transactions in the same instrument (i.e., without modification or repackaging) or based on any available observable market data.
The Companys fair value hierarchy as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011 is as follows:
|
|
|
|
|
September 30, 2013
|
|
|
|
|
|
|
|
Quoted prices
|
|
Significant
|
|
|
|
|
|
|
|
|
|
in active
|
|
and
|
|
|
|
|
|
|
|
|
|
markets for
|
|
observable
|
|
|
|
|
|
|
|
|
|
identical
|
|
inputs,
|
|
Significant
|
|
|
|
|
|
|
|
assets or
|
|
directly or
|
|
unobservable
|
|
|
|
|
|
|
|
liabilities
|
|
indirectly
|
|
inputs
|
|
|
|
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Current Financial Assets
|
|
|
|
|
|
|
|
|
Derivative assets
|
94,614
|
|
-
|
|
94,614
|
|
-
|
|
Non-current Financial Assets
|
|
|
|
|
|
|
|
|
Other non-current financial assets - net
|
1,402,984
|
|
1,402,984
|
|
-
|
|
-
|
|
Total Financial Assets
|
1,497,598
|
|
1,402,984
|
|
94,614
|
|
-
|
|
Current Financial Liabilities
|
|
|
|
|
|
|
|
|
Derivative liabilities
|
38,992
|
|
-
|
|
38,992
|
|
-
|
21. FINANCIAL ASSETS AND LIABILITIES (continued)
Fair Value Hierarchy (continued)
|
|
|
|
|
December 31, 2012
|
|
|
|
|
|
|
|
Quoted prices
|
|
Significant
|
|
|
|
|
|
|
|
|
|
in active
|
|
and
|
|
|
|
|
|
|
|
|
|
markets for
|
|
observable
|
|
|
|
|
|
|
|
|
|
identical
|
|
inputs,
|
|
Significant
|
|
|
|
|
|
|
|
assets or
|
|
directly or
|
|
unobservable
|
|
|
|
|
|
|
|
liabilities
|
|
indirectly
|
|
inputs
|
|
|
|
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Current Financial Assets
|
|
|
|
|
|
|
|
|
Derivative assets
|
69,654
|
|
-
|
|
69,654
|
|
-
|
|
Non-Current Financial Assets
|
|
|
|
|
|
|
|
|
Other non-current financial assets
|
1,367,010
|
|
1,367,010
|
|
-
|
|
-
|
|
Total Financial Assets
|
1,436,664
|
|
1,367,010
|
|
69,654
|
|
-
|
|
Current Financial Liabilities
|
|
|
|
|
|
|
|
|
Derivative liabilities
|
81,241
|
|
-
|
|
81,241
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2012 / December 31, 2011
|
|
|
|
|
|
|
|
Quoted prices
|
|
Significant
|
|
|
|
|
|
|
|
|
|
in active
|
|
and
|
|
|
|
|
|
|
|
|
|
markets for
|
|
observable
|
|
|
|
|
|
|
|
|
|
identical
|
|
inputs,
|
|
Significant
|
|
|
|
|
|
|
|
assets or
|
|
directly or
|
|
unobservable
|
|
|
|
|
|
|
|
liabilities
|
|
indirectly
|
|
inputs
|
|
|
|
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Current Financial Assets
|
|
|
|
|
|
|
|
|
Derivative assets
|
159,349
|
|
-
|
|
159,349
|
|
-
|
|
Current Financial Liabilities
|
|
|
|
|
|
|
|
|
Derivative liabilities
|
138,189
|
|
-
|
|
138,189
|
|
-
|
|
Embedded derivatives
|
49,518
|
|
-
|
|
49,518
|
|
-
|
|
Total Financial Liabilities
|
187,707
|
|
-
|
|
187,707
|
|
-
|
For the nine-month period ended September 30, 2013 and years ended December 31, 2012 and January 1, 2012 / December 31, 2011, there were no transfers between Level 1 and Level 2 fair value measurements.
22.
EMPLOYEE BENEFIT OBLIGATIONS - NET OF CURRENT PORTION
This account consists of the non-current portions of employee benefit obligations as follows:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Post-retirement healthcare (Note 30)
|
728,460
|
|
632,737
|
|
555,752
|
|
Labor Law 13 (Note 30)
|
295,137
|
|
249,314
|
|
194,329
|
|
Service award
|
47,600
|
|
41,479
|
|
35,071
|
|
Accumulated leave benefits
|
3,370
|
|
2,694
|
|
2,161
|
|
Total
|
1,074,567
|
|
926,224
|
|
787,313
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
23. CAPITAL STOCK
The Companys capital stock ownership as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011 is as follows:
|
|
|
|
|
|
Number of
|
|
|
|
Percentage
|
|
|
|
|
|
|
Shares Issued
|
|
|
|
of Ownership
|
|
Stockholders
|
|
and Fully Paid
|
|
Amount
|
|
(%)
|
|
September 30, 2013
|
|
|
|
|
|
|
|
A Share
|
|
|
|
|
|
|
|
|
Government
|
|
1
|
|
-
|
|
-
|
|
B Shares
|
|
|
|
|
|
|
|
|
Ooredoo Asia, Pte. Ltd.
|
|
3,532,056,600
|
|
353,206
|
|
65.00
|
|
|
Government
|
|
776,624,999
|
|
77,662
|
|
14.29
|
|
|
SKAGEN Funds (SKAGEN AS)
|
|
297,046,950
|
|
29,705
|
|
5.46
|
|
|
Director:
|
|
|
|
|
|
|
|
|
|
Fadzri Sentosa
|
|
10,000
|
|
1
|
|
0.00
|
|
|
Others (each holding below 5%)
|
|
828,194,950
|
|
82,819
|
|
15.25
|
|
Total
|
|
5,433,933,500
|
|
543,393
|
|
100.00
|
|
December 31, 2012
|
|
|
|
|
|
|
|
A Share
|
|
|
|
|
|
|
|
|
Government
|
|
1
|
|
-
|
|
-
|
|
B Shares
|
|
|
|
|
|
|
|
|
Ooredoo Asia, Pte. Ltd.
|
|
3,532,056,600
|
|
353,206
|
|
65.00
|
|
|
Government
|
|
776,624,999
|
|
77,662
|
|
14.29
|
|
|
SKAGEN Funds (SKAGEN AS)
|
|
299,382,400
|
|
29,938
|
|
5.51
|
|
|
Director:
|
|
|
|
|
|
|
|
|
|
Fadzri Sentosa
|
|
10,000
|
|
1
|
|
0.00
|
|
|
Others (each holding below 5%)
|
|
825,859,500
|
|
82,586
|
|
15.20
|
|
Total
|
|
5,433,933,500
|
|
543,393
|
|
100.00
|
|
January 1, 2012 / December 31, 2011
|
|
|
|
|
|
|
|
A Share
|
|
|
|
|
|
|
|
|
Government
|
|
1
|
|
-
|
|
-
|
|
B Shares
|
|
|
|
|
|
|
|
|
Ooredoo Asia, Pte. Ltd.
|
|
3,532,056,600
|
|
353,206
|
|
65.00
|
|
|
Government
|
|
776,624,999
|
|
77,662
|
|
14.29
|
|
|
SKAGEN Funds (SKAGEN AS)
|
|
305,498,450
|
|
30,550
|
|
5.62
|
|
|
Director:
|
|
|
|
|
|
|
|
|
|
Fadzri Sentosa
|
|
10,000
|
|
1
|
|
0.00
|
|
|
Others (each holding below 5%)
|
|
819,743,450
|
|
81,974
|
|
15.09
|
|
Total
|
|
5,433,933,500
|
|
543,393
|
|
100.00
|
The A share is a special share held by the Government and has special voting rights. The material rights and restrictions which are applicable to the B shares are also applicable to the A share, except that the Government may not transfer the A share, which has a veto right with respect to (i) amendment to the objective and purposes of the Company; (ii) increase of capital without pre-emptive rights; (iii) merger, consolidation, acquisition and demerger; (iv) amendment to the provisions regarding the rights of A share as stipulated in the Articles of Association; and (v) dissolution, bankruptcy and liquidation of the Company. The holder of A share also has the right to appoint one director and one commissioner of the Company.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
24.
REVENUES
The breakdown of this account for the nine-month periods ended September 30, 2013 and 2012 consists of the following:
|
|
|
|
|
2013
|
|
2012
|
|
Cellular
|
|
|
|
|
|
Usage charges
|
6,992,501
|
|
6,319,365
|
|
|
Value-added services
|
6,207,325
|
|
5,777,510
|
|
|
Interconnection services (Note 36)
|
1,879,967
|
|
1,468,612
|
|
|
Tower leasing (Notes 2u and 33j)
|
419,664
|
|
375,943
|
|
|
Monthly subscription charges
|
92,882
|
|
102,683
|
|
|
Upfront discount and Customer Loyalty Program (Notes 2k and 2u)
|
(1,283,567)
|
|
(746,352)
|
|
|
Others
|
170,903
|
|
157,770
|
|
|
Sub-total
|
14,479,675
|
|
13,455,531
|
|
MIDI
|
|
|
|
|
|
Internet Protocol Virtual Private Network (IP VPN)
|
539,827
|
|
551,097
|
|
|
Internet
|
468,131
|
|
302,633
|
|
|
Multiprotocol Label Switching (MPLS)
|
280,326
|
|
202,797
|
|
|
World link and direct link
|
249,830
|
|
217,963
|
|
|
Application services
|
193,848
|
|
166,216
|
|
|
Satellite lease
|
188,749
|
|
149,929
|
|
|
Leased line
|
143,199
|
|
102,908
|
|
|
Digital data network
|
81,542
|
|
84,378
|
|
|
Frame net
|
72,535
|
|
98,257
|
|
|
Value added service (Note 2u)
|
34,163
|
|
106,108
|
|
|
Others
|
180,719
|
|
80,395
|
|
|
Sub-total
|
2,432,869
|
|
2,062,681
|
|
Fixed Telecommunications
|
|
|
|
|
|
International Calls
|
739,322
|
|
587,703
|
|
|
Fixed Line
|
100,748
|
|
89,599
|
|
|
Fixed Wireless
|
46,645
|
|
79,876
|
|
|
Sub-total
|
886,715
|
|
757,178
|
|
Total
|
17,799,259
|
|
16,275,390
|
|
|
|
|
|
|
|
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
24.
REVENUES (continued)
|
The details of net revenues (included as part of cellular revenue - value added services) received by the Company from agency relationships for the nine-month periods ended September 30, 2013 and 2012 are as follows:
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Gross revenues
|
6,330,582
|
|
5,849,155
|
|
Compensation to value added service providers
|
(123,257)
|
|
(71,645)
|
|
Net revenues
|
6,207,325
|
|
5,777,510
|
|
|
|
|
|
|
|
|
Operating revenues from related parties amounted to Rp1,592,027 and Rp1,263,762 for the nine-month periods ended September 30, 2013 and 2012, respectively. These amounts represent 8.94% and 7.76% of the total operating revenues for the nine-month periods ended September 30, 2013 and 2012, respectively.
The operating revenues from interconnection services are presented on a gross basis.
25.
EXPENSES - COST OF SERVICES
The breakdown of this account for the nine-month periods ended September 30, 2013 and 2012 consists of the following:
|
|
|
|
|
2013
|
|
2012
|
|
Interconnection (Note 36)
|
2,239,894
|
|
1,784,486
|
|
Radio frequency fee (Notes 33l and 35)
|
1,654,292
|
|
1,457,738
|
|
Maintenance
|
688,659
|
|
584,973
|
|
Utilities
|
655,587
|
|
637,582
|
|
Rent (Notes 2u and 33k)
|
579,657
|
|
520,413
|
|
Blackberry access fee
|
394,565
|
|
378,200
|
|
Leased circuits
|
373,393
|
|
288,172
|
|
USO (Note 35)
|
204,610
|
|
203,147
|
|
Cost of SIM cards and pulse reload vouchers
|
180,261
|
|
166,218
|
|
Concession fee (Note 35)
|
109,019
|
|
101,868
|
|
Installation
|
102,027
|
|
120,944
|
|
Delivery and transportation
|
89,396
|
|
83,357
|
|
License
|
26,920
|
|
37,550
|
|
Billing and collection
|
23,848
|
|
29,707
|
|
Cost of handsets and modems
|
5,523
|
|
9,857
|
|
Others
|
60,053
|
|
58,059
|
|
Total
|
7,387,704
|
|
6,462,271
|
Interconnection relates to the expenses for the interconnection between the Companys telecommunications networks and those owned by Telkom or other telecommunications carriers (Note 2k).
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
26. EXPENSES - PERSONNEL
The breakdown of this account for the nine-month periods ended September 30, 2013 and 2012 is as follows
:
|
|
|
|
|
2013
|
|
2012
|
|
Salaries
|
444,764
|
|
412,411
|
|
Incentives and other employee benefits
|
248,521
|
|
231,852
|
|
Employee income tax
|
159,416
|
|
126,377
|
|
Bonuses
|
121,584
|
|
101,384
|
|
Post-retirement healthcare benefits (Note 30)
|
104,413
|
|
68,682
|
|
Separation, appreciation and compensation expense
|
|
|
|
|
|
under Labor Law No. 13/2003 (Note 30)
|
49,518
|
|
42,738
|
|
Medical expense
|
44,694
|
|
43,498
|
|
Pension (Note 30)
|
14,546
|
|
11,814
|
|
Early retirement**
|
2,759
|
|
-
|
|
Severance benefits under Voluntary Separation Scheme (VSS)*
|
-
|
|
6,330
|
|
Others
|
19,585
|
|
7,396
|
|
Total
|
1,209,800
|
|
1,052,482
|
*
On January 20, 2011 and January 2, 2012, the Companys and Lintasartas Boards of Directors issued Directors Decree No. 003/Direksi/2011 and Directors Decree No. 015/Direksi/40000/2012, regarding the Organizational Restructuring Program through an offering scheme on the basis of mutual agreement between the Company / Lintasarta and certain employees (VSS), that became effective on the same date. For the nine-month period ended September 30, 2012 , there were 24 employees of Lintasarta who availed themselves of the scheme, and the benefits paid amounted to Rp6,330.
**On June 27, 2006, the Companys Directors issued Decree No. 051/DIREKSI/2006, Additional Benefits for Voluntarily Resigned Employees. Under this decree, employees qualified for early retirement and who voluntarily resigned after the approval from the Board of Directors were given benefits of additional remuneration, traveling and training package. For the nine-month period ended September 30, 2013, there were 11 employees who took the option.
The personnel expenses capitalized to properties under construction and installation for the nine-month periods ended September 30, 2013 and 2012 amounted to Rp37,732and Rp40,125, respectively.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
27.
EXPENSES - GENERAL AND ADMINISTRATION
The breakdown of this account for the nine-month periods ended September 30, 2013 and 2012 consists of the following:
|
|
|
|
|
2013
|
|
2012
|
|
Professional fees (Note 33e)
|
205,471
|
|
111,110
|
|
Rent
|
100,811
|
|
83,825
|
|
Provision for impairment of receivables - net (Note 5)
|
72,941
|
|
65,751
|
|
Transportation
|
46,157
|
|
43,976
|
|
Insurance
|
24,439
|
|
29,161
|
|
Training, education and research
|
21,652
|
|
13,597
|
|
Office
|
20,989
|
|
21,649
|
|
Public relations
|
15,996
|
|
7,213
|
|
Social activities
|
15,676
|
|
16,509
|
|
Utilities
|
10,558
|
|
10,471
|
|
Communication
|
5,083
|
|
5,770
|
|
Others (each below Rp5,000)
|
46,499
|
|
34,291
|
|
Total
|
586,272
|
|
443,323
|
28.
FINANCING COST
The breakdown of this account for the nine-month periods ended September 30, 2013 and 2012 consists of the following:
|
|
|
|
|
2013
|
|
2012
|
|
Interest on loans
|
1,237,737
|
|
1,314,833
|
|
Finance charges under finance lease
|
330,291
|
|
135,224
|
|
Amortization of debt and bonds issuance
|
|
|
|
|
costs, consent solicitation fees and discount (Notes 14, 18 and 19)
|
44,262
|
|
70,756
|
|
Interest expense from Lintasartas USO Project
|
7,218
|
|
8,672
|
|
Bank charges
|
1,925
|
|
4,420
|
|
Total
|
1,621,433
|
|
1,533,905
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
29.
GAIN ON TOWER SALE
On February 7, 2012, the Company entered into an Asset Sale Agreement with PT Tower Bersama Infrastructure Tbk and its subsidiary, PT Solusi Menara Bersama (collectively referred to as Tower Bersama), whereby the Company agreed to sell 2,500 of its telecommunication towers to Tower Bersama for a total consideration of US$518,500, consisting of US$406,000 to be paid upfront and a maximum potential deferred payment of US$112,500. The upfront payment includes PT Tower Bersama Infrastructure Tbk's shares of not less than 5% of the increase in its capital stock (upon the Rights Issue of PT Tower Bersama Infrastructure Tbk). Based on the agreement, the Company also agreed to lease back the spaces in the 2,500 telecommunication towers for a 10-year period with fixed monthly lease rate of US$1,300 per tower slot (in full amount). The leases have an option to be renewed for a further 10-year period.
On August 2, 2012, the Company and Tower Bersama closed the deal on the sale-and-leaseback transactions of 2,500 telecommunication towers. On the closing date of such transaction, the Company received cash amounting to US$326,289 (equivalent to Rp3,092,894) and obtained 5% ownership (equal to 239,826,310 shares) in Tower Bersama with a value of US$103,101 (equivalent to Rp977,292) (Note 12).
The total consideration of US$429,390 (equal to Rp4,070,187) is allocated to the sales of property and equipment amounting to Rp3,870,600 and the remainder is allocated to prepaid land lease and existing tower lease contracts from the 2,500 towers. The total carrying amount of the separately identifiable components of the transaction is Rp1,534,494 which includes the carrying amount of property and equipment amounting to Rp1,372,674. As of the agreement closing date, the Company recorded the excess of the selling price over the carrying amounts amounting to Rp2,535,693 (including the Rp2,497,926 from the sale of property and equipment) as Gain on Sale of Towers of Rp1,125,192, and Deferred Gain on Sale-and-Leaseback Transactions of Rp1,410,501. The deferred gain will be amortized over the term of the lease, being 10 years.
For the nine-month period ended September 30, 2012, the Company recognized total Gain on Sale of Towers of Rp1,150,780, which includes the amortization of the Deferred Gain on Sale-and-Leaseback Transactions. As of September 30, 2013 and December 31, 2012, the balances of the current portion of outstanding deferred gain on sale-and-leaseback transactions amounting to Rp141,050 each are presented as part of Other Current Liabilities, whilethe balances of the Iong-term portion amounting to Rp1,140,155 and Rp1,210,680, respectively, are presented as part of Other Non-current Liabilities.
For the nine-month period ended September 30, 2013, the Company recorded amortization of deferred gain on sale-and-leaseback transactions amounting to Rp105,788.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN
The Company, Satelindo and Lintasarta have defined benefit and defined contribution pension plans covering substantially all of their respective qualified permanent employees.
Defined Benefit Pension Plan
The Company, Satelindo and Lintasarta provide defined benefit pension plans to their respective employees under which pension benefits to be paid upon retirement are based on the employees most recent basic salary and number of years of service. PT Asuransi Jiwasraya (Jiwasraya), a state-owned life insurance company, manages the plans. Pension contributions are determined by periodic actuarial calculations performed by Jiwasraya.
Based on an amendment dated December 22, 2000 of the Companys pension plan, which was further amended on March 29, 2001, the benefits and the premium payment pattern were changed.
Before the amendment, the premium was regularly paid annually until the plan would be fully funded and the benefits consisted of retirement benefit (regular monthly or lump-sum pension) and death insurance. In conjunction with the amendment, the plan would be fully funded after making installment payments up to January 2002 of the required amount to fully fund the plan determined as of September 1, 2000. The amendment also includes an additional benefit in the form of thirteenth-month retirement benefit, which is payable annually 14 days before Idul Fitri (Moslem Holiday).
The amendment covers employees registered as participants of the pension plan as of
September 1, 2000 and includes an increase in basic salary pension by 9% compounded annually starting from September 1, 2001. The amendment also stipulates that there will be no increase in the premium even in cases of mass employee terminations or changes in marital status.
The total premium installments based on the amendment amounted to Rp355,000 and were paid on due dates.
On March 1, 2007, the Company entered into an agreement with Jiwasraya to provide defined death insurance plan to 1,276 employees as of January 1, 2007, who are not covered by the defined benefit pension plan as stated above. Based on the agreement, a participating employee will receive:
·
Expiration benefit equivalent to the cash value at the normal retirement age, or
·
Death benefit not due to accident equivalent to 100% of insurance money plus cash value when the employee dies not due to accident, or
·
Death benefit due to accident equivalent to 200% of insurance money plus cash value when the employee dies due to accident.
The premium of Rp7,600 was fully paid on March 29, 2007. Subsequently, in August 2007, February to December 2008, January to December 2009, January to December 2010, January to December 2011, January to December 2012 and January to September 2013, the Company made payments for additional premium of Rp275 for additional 55 employees, Rp805 for additional 161 employees, Rp415 for additional 81 employees, Rp120 for additional 14 employees, Rp378 for additional 41 employees, Rp883 for additional 143 employees and Rp425 for additional 57 employees, respectively.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN (continued)
Defined Benefit Pension Plan (continued)
On June 25, 2003, Satelindo entered into an agreement with Jiwasraya to amend the benefits and premium payment pattern of the formers pension plan. The amendment covers employees registered as participants of the pension plan as of December 25, 2002 up to June 25, 2003. Other new conditions include the following:
·
An increase in pension basic salary at 6% compounded annually starting from December 25, 2002
·
Thirteenth-month retirement benefit, which is payable annually 14 days before Idul Fitri
·
An increase in periodic payment of retirement benefit at 6% compounded annually starting one year after receiving periodic retirement benefit for the first time
·
If the average annual interest rate of time deposits of government banks exceeds 15%, the participants retirement benefit will be increased by a certain percentage in accordance with the formula agreed by both parties.
On April 15, 2005, Lintasarta entered into an agreement with Jiwasraya to replace their existing agreement. Based on the new agreement, the benefits and the premium payment pattern were changed. This agreement is effective starting January 1, 2005. The total premium installments based on the agreement amounted to Rp61,623, which is payable in 10 annual installments starting 2005 until 2015.
The new agreement covers employees registered as participants of the pension plan as of
April 1, 2003. The conditions under the new agreement include the following:
·
An increase in pension basic salary by 3% (previously was estimated at 8%) compounded annually starting April 1, 2003
·
An increase in periodic payment of retirement benefit at 5% compounded annually starting one year after receiving periodic retirement benefit for the first time
·
If the average annual interest rate of time deposits of government banks exceeds 15%, the participants retirement benefit will be increased by a certain percentage in accordance with the formula agreed by both parties.
On May 2, 2005, Lintasarta entered into an agreement with Jiwasraya to amend the above agreement. The amendment covers employees registered as participants of the pension plan as of April 1, 2003 up to November 30, 2004 with additional 10 annual premium installments totalling Rp1,653 which are payable starting 2005 until 2015.
The contributions made by Lintasarta to Jiwasraya amounted to Rp9,653 each for the nine-month periods ended September 30, 2013 and 2012.
30.
PENSION PLAN (continued)
Defined Benefit Pension Plan (continued)
The net periodic pension cost for the pension plans of the Company and Lintasarta for the nine-month periods ended September 30, 2013 and 2012 was calculated based on actuarial valuations as of December 31, 2012 and 2011, respectively. The actuarial valuations were prepared by an independent actuary, using the projected-unit-credit method and applying the following assumptions:
|
|
|
|
|
2013
|
|
2012
|
|
Annual discount rate
|
6.0%
|
|
7.0 - 7.5%
|
|
Expected annual rate of return on plan assets
|
4.5 - 8.0%
|
|
4.5 - 9.0%
|
|
Annual rate of increase in compensation
|
3.0 - 9.0%
|
|
3.0 - 9.0%
|
|
Mortality rate (Indonesian Mortality Table - TMI)
|
TMI 2011
|
|
TMI 1999
|
a.
The composition of the net periodic pension cost for the nine-month periods ended September 30, 2013 and 2012 is as follows:
|
|
|
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest cost
|
21,623
|
|
2,583
|
|
24,206
|
|
|
|
Service cost
|
21,072
|
|
2,792
|
|
23,864
|
|
|
|
Amortization of unrecognized actuarial loss
|
-
|
|
1,348
|
|
1,348
|
|
|
|
Return on plan assets
|
(29,735)
|
|
(3,035)
|
|
(32,770)
|
|
|
|
Immediate recognition of past service
cost - vested benefit
|
-
|
|
(2,102)
|
|
(2,102)
|
|
|
|
Net periodic pension cost (Note 26)
|
12,960
|
|
1,586
|
|
14,546
|
|
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest cost
|
21,104
|
|
2,942
|
|
24,046
|
|
|
|
Service cost
|
19,500
|
|
2,702
|
|
22,202
|
|
|
|
Amortization of unrecognized actuarial loss
|
-
|
|
889
|
|
889
|
|
|
|
Return on plan assets
|
(31,370)
|
|
(3,953)
|
|
(35,323)
|
|
|
|
Net periodic pension cost (Note 26)
|
9,234
|
|
2,580
|
|
11,814
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN (continued)
Defined Benefit Pension Plan (continued)
b.
The funded status of the plans as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011 is as follows:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
Plan assets at fair value
|
625,734
|
|
576,335
|
|
538,902
|
|
|
|
Projected benefit obligation
|
(602,279)
|
|
(554,209)
|
|
(463,074)*
|
|
|
|
Excess of plan assets over projected
|
|
|
|
|
|
|
|
|
|
benefit obligation
|
23,455
|
|
22,126
|
|
75,828
|
|
|
|
Unrecognized actuarial loss
|
61,858
|
|
68,175
|
|
29,464
|
|
|
|
Total prepaid pension cost
|
85,313
|
|
90,301
|
|
105,292
|
* net of curtailment effect during 2011 due to VSS (Note 26)
c.
The movements in the fair value of plan assets for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows:
|
|
|
September 30, 2013 (NineMonths)
|
|
|
|
|
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
Total
|
|
|
|
Fair value of plan assets
|
|
|
|
|
|
|
|
|
|
at beginning of period
|
513,316
|
|
63,019
|
|
576,335
|
|
|
|
Expected return on plan assets
|
29,735
|
|
3,035
|
|
32,770
|
|
|
|
Actuarial gain (loss) on plan assets
|
11,567
|
|
(5,016)
|
|
6,551
|
|
|
|
Contributions
|
425
|
|
9,653
|
|
10,078
|
|
|
|
Fair value of plan assets at end of period
|
555,043
|
|
70,691
|
|
625,734
|
|
|
|
December 31, 2012 (One Year)
|
|
|
|
|
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
Total
|
|
|
|
Fair value of plan assets
|
|
|
|
|
|
|
|
|
|
at beginning of period
|
476,890
|
|
62,012
|
|
538,902
|
|
|
|
Expected return on plan assets
|
37,479
|
|
3,607
|
|
41,086
|
|
|
|
Actuarial gain (loss) on plan assets
|
7,815
|
|
(3,175)
|
|
4,640
|
|
|
|
Contributions
|
883
|
|
9,653
|
|
10,536
|
|
|
|
Actual benefits paid
|
(9,751)
|
|
(9,078)
|
|
(18,829)
|
|
|
|
Fair value of plan assets at end of year
|
513,316
|
|
63,019
|
|
576,335
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN (continued)
Defined Benefit Pension Plan (continued)
c.
The movements in the fair value of plan assets for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows (continued):
|
|
|
December 31, 2011 (One year)
|
|
|
|
|
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
Total
|
|
|
|
Fair value of plan assets
|
|
|
|
|
|
|
|
|
|
at beginning of year
|
793,664
|
|
59,294
|
|
852,958
|
|
|
|
Expected return on plan assets
|
47,175
|
|
5,038
|
|
52,213
|
|
|
|
Actuarial gain (loss) on plan assets
|
14,651
|
|
(610)
|
|
14,041
|
|
|
|
Contributions
|
378
|
|
9,653
|
|
10,031
|
|
|
|
Actual benefits paid
|
(378,978)
|
|
(11,363)
|
|
(390,341)
|
|
|
|
Fair value of plan assets at end of year
|
476,890
|
|
62,012
|
|
538,902
|
d.
The movements in the present value of the defined benefit obligation for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows:
|
|
|
September 30, 2013 (NineMonths)
|
|
|
|
|
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
Total
|
|
|
|
Defined benefit obligation at beginning of period
|
493,854
|
|
60,355
|
|
554,209
|
|
|
|
Interest cost
|
21,623
|
|
2,583
|
|
24,206
|
|
|
|
Current service cost
|
21,072
|
|
2,792
|
|
23,864
|
|
|
|
Defined benefit obligation at end of period
|
536,549
|
|
65,730
|
|
602,279
|
December 31, 2012 (One Year)
The Company
Lintasarta
Total
Defined benefit obligation at beginning of year
409,808
53,266
463,074
Interest cost
28,346
3,590
31,936
Current service cost
25,617
3,219
28,836
Actuarial loss on obligation
2,434
7,632
10,066
Effect of settlement
-
(4,360
)
(4,360)Actual benefit paid(9,751)(3,909)(13,660)
Effect of curtailment
-
917
917
Effect of changes in actuarial assumption
37,400
-
37,400
Defined benefit obligation at end of year
493,854
60,355
554,209
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30. PENSION PLAN (continued)
Defined Benefit Pension Plan (continued)
d. The movements in the present value of the defined benefit obligation for the nine-month period endedSeptember 30, 2013 and years ended December 31, 2012 and 2011 are as follows (continued):
|
|
|
December 31, 2011 (One Year)
|
|
|
|
|
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
Total
|
|
|
|
Defined benefit obligation at beginning of year
|
700,410
|
|
50,215
|
|
750,625
|
|
|
|
Interest cost
|
43,786
|
|
4,189
|
|
47,975
|
|
|
|
Current service cost
|
27,167
|
|
3,839
|
|
31,006
|
|
|
|
Actuarial loss (gain) on obligation
|
(12,066)
|
|
4,315
|
|
(7,751)
|
|
|
|
Effect of settlement
|
(358,597)
|
|
(9,080)
|
|
(367,677)
|
|
|
|
Actual benefits paid
|
(18,750)
|
|
(1,857)
|
|
(20,607)
|
|
|
|
Effect of curtailment
|
(18,886)
|
|
1,645
|
|
(17,241)
|
|
|
|
Effect of changes in actuarial assumptions
|
46,744
|
|
-
|
|
46,744
|
|
|
|
Defined benefit obligation at end of year
|
409,808
|
|
53,266
|
|
463,074
|
e. The movements in the prepaid pension cost for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows:
|
|
|
September 30, 2013 (Nine Months)
|
|
|
|
|
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
Total
|
|
|
|
Prepaid pension cost at beginning of period
|
60,130
|
|
30,171
|
|
90,301
|
|
|
|
Contribution to Jiwasraya
|
425
|
|
9,653
|
|
10,078
|
|
|
|
Net periodic pension cost
|
(12,960)
|
|
(1,586)
|
|
(14,546)
|
|
|
|
Refund from Jiwasraya
|
-
|
|
(520)
|
|
(520)
|
|
|
|
Prepaid pension cost at end of period
|
47,595
|
|
37,718
|
|
85,313
|
|
|
|
December 31, 2012 (One Year)
|
|
|
|
|
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
Total
|
|
|
|
Prepaid pension cost at beginning of year
|
75,731
|
|
29,561
|
|
105,292
|
|
|
|
Contribution to Jiwasraya
|
883
|
|
9,653
|
|
10,536
|
|
|
|
Net periodic pension cost
|
(16,484)
|
|
(8,235)
|
|
(24,719)
|
|
|
|
Refund from Jiwasraya
|
-
|
|
(808)
|
|
(808)
|
|
|
|
Prepaid pension cost at end of year
|
60,130
|
|
30,171
|
|
90,301
|
30. PENSION PLAN (continued)
Defined Benefit Pension Plan (continued)
e.
The movements in the prepaid pension cost for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows (continued):
|
|
|
December 31, 2011 (One Year)
|
|
|
|
|
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
Total
|
|
|
|
Prepaid pension cost at beginning of year
|
82,871
|
|
30,390
|
|
113,261
|
|
|
|
Contribution to Jiwasraya
|
378
|
|
9,653
|
|
10,031
|
|
|
|
Net periodic pension cost
|
(5,887)
|
|
(10,056)
|
|
(15,943)
|
|
|
|
Refund from Jiwasraya
|
(1,631)
|
|
(426)
|
|
(2,057)
|
|
|
|
Prepaid pension cost at end of year
|
75,731
|
|
29,561
|
|
105,292
|
f.
Prepaid pension cost consists of:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
Current portion (presented as part of
|
|
|
|
|
|
|
|
|
|
Prepaid expenses - others)
|
|
|
|
|
|
|
|
|
|
Company
|
1,224
|
|
1,224
|
|
1,730
|
|
|
|
|
Lintasarta
|
2,701
|
|
232
|
|
381
|
|
|
|
|
|
3,925
|
|
1,456
|
|
2,111
|
|
|
|
Long-term portion (presented as Long-term
|
|
|
|
|
|
|
|
|
|
prepaid pension - net of current portion)
|
|
|
|
|
|
|
|
|
|
Company
|
46,371
|
|
58,906
|
|
74,001
|
|
|
|
|
Lintasarta
|
35,017
|
|
29,939
|
|
29,180
|
|
|
|
|
|
81,388
|
|
88,845
|
|
103,181
|
|
|
|
Total prepaid pension cost
|
85,313
|
|
90,301
|
|
105,292
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN (continued)
Defined Benefit Pension Plan (continued)
The major categories of plan assets as a percentage of the fair value of total plan assets as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011 are as follows:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
Investment in mutual fund
|
60.73%
|
|
75.34%
|
|
78.11%
|
|
Investment in shares of stocks and properties
|
26.15%
|
|
7.10%
|
|
4.19%
|
|
Investment in time deposits
|
8.61%
|
|
12.13%
|
|
12.50%
|
|
Investment in debt securities
|
4.51%
|
|
5.43%
|
|
5.19%
|
|
Other investments
|
0.00%
|
|
0.00%
|
|
0.01%
|
The overall expected rate of return on assets is determined based on the market expectations prevailing on that date, applicable to the period over which the obligation is to be settled.
Defined Contribution Pension Plan
In May 2001 and January 2003, the Company and Satelindo assisted their employees in establishing their respective employees defined contribution pension plans. Starting June 2004, the Company also assisted ex-IM3 employees in establishing their defined contribution pension plan. Under the defined contribution pension plan, the employees contribute 10% - 20% of their basic salaries, while the Company does not contribute to the plans. Total contributions of employees for the nine-month periods ended September 30, 2013 and 2012 amounted to Rp39,981 and Rp36,906, respectively. The plan assets are being administered and managed by seven financial institutions appointed by the Company and Satelindo, based on the choice of the employees.
Labor Law No. 13/2003
The Company, Lintasarta and IMM also accrue benefits under Labor Law No. 13/2003 (Labor Law) dated March 25, 2003. Their employees will receive the benefits under either this law or the defined benefit pension planwhichever is higher.
The net periodic pension cost of the Company and the subsidiaries under the Labor Law for thenine-month periods ended September 30, 2013 and 2012 was calculated based on actuarial valuations as of December 31, 2012 and 2011, respectively. The actuarial valuations were prepared by an independent actuary, using the projected-unit-credit method and applying the following assumptions:
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
Annual discount rate
|
6.0 - 6.5%
|
|
7.5%
|
|
Annual rate of increase in compensation
|
8.0-8.5%
|
|
8.0 -9.0%
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN (continued)
Labor Law No. 13/2003 (continued)
a.
The composition of the periodic pension cost under the Labor Law for the nine-month periods ended September 30, 2013 and 2012 is as follows:
|
|
|
September 30, 2013
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
IMM
|
|
Total
|
|
|
|
Service cost
|
21,521
|
|
3,007
|
|
2,264
|
|
26,792
|
|
|
|
Interest cost
|
14,479
|
|
2,207
|
|
958
|
|
17,644
|
|
|
|
Amortization of unrecognized
|
|
|
|
|
|
|
|
|
|
|
|
actuarial loss
|
3,364
|
|
555
|
|
126
|
|
4,045
|
|
|
|
Immediate recognition of past
|
|
|
|
|
|
|
|
|
|
|
|
service cost - vested benefit
|
-
|
|
527
|
|
-
|
|
527
|
|
|
|
Amortization of unrecognized
|
|
|
|
|
|
|
|
|
|
|
|
past service cost
|
-
|
|
489
|
|
21
|
|
510
|
|
|
|
Net periodic pension
|
|
|
|
|
|
|
|
|
|
|
|
cost under the Labor
|
|
|
|
|
|
|
|
|
|
|
|
Law (Note 26)
|
39,364
|
|
6,785
|
|
3,369
|
|
49,518
|
|
|
|
September 30, 2012
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
IMM
|
|
Total
|
|
|
|
Service cost
|
18,725
|
|
1,568
|
|
2,237
|
|
22,530
|
|
|
|
Interest cost
|
13,991
|
|
1,353
|
|
893
|
|
16,237
|
|
|
|
Amortization of unrecognized
|
|
|
|
|
|
|
|
|
|
|
|
actuarial loss (gain)
|
3,547
|
|
(178)
|
|
83
|
|
3,452
|
|
|
|
Amortization of unrecognized
|
|
|
|
|
|
|
|
|
|
|
|
past service cost
|
-
|
|
498
|
|
21
|
|
519
|
|
|
|
Net periodic pension
|
|
|
|
|
|
|
|
|
|
|
|
cost under the Labor
|
|
|
|
|
|
|
|
|
|
|
|
Law (Note 26)
|
36,263
|
|
3,241
|
|
3,234
|
|
42,738
|
b.
The composition of the accrued pension cost under the Labor Law as of September 30, 2013, December 31, 2012 and January 1, 2012/ December 31, 2011is as follows:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
Projected benefit obligation
|
408,716
|
|
367,641
|
|
291,135*
|
|
|
|
Unrecognized actuarial loss
|
(101,381)
|
|
(105,413)
|
|
(83,494)
|
|
|
|
Unrecognized past service cost
|
(6,745)
|
|
(7,795)
|
|
(8,612)
|
|
|
|
Net accrued pension cost under the Labor Law
|
300,590
|
|
254,433
|
|
199,029
|
*net of curtailment effect during 2011 due to VSS (Note 26)
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN (continued)
Labor Law No. 13/2003 (continued)
c.
The movements in the present value of the pension cost obligation under the Labor Law for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows:
|
|
|
September 30, 2013 (Nine Months)
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
IMM
|
|
Total
|
|
|
|
Benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
at beginning of period
|
299,410
|
|
48,489
|
|
19,742
|
|
367,641
|
|
|
|
Current service cost
|
21,521
|
|
3,007
|
|
2,264
|
|
26,792
|
|
|
|
Interest cost
|
14,479
|
|
2,207
|
|
958
|
|
17,644
|
|
|
|
Actual benefits paid
|
(3,271)
|
|
(90)
|
|
-
|
|
(3,361)
|
|
|
|
Benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
at end of period
|
332,139
|
|
53,613
|
|
22,964
|
|
408,716
|
|
|
|
December 31, 2012 (One Year)
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
IMM
|
|
Total
|
|
|
|
Benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
at beginning of year
|
250,988
|
|
24,160
|
|
15,987
|
|
291,135
|
|
|
|
Current service cost
|
25,711
|
|
3,289
|
|
2,632
|
|
31,632
|
|
|
|
Interest cost
|
18,776
|
|
1,775
|
|
1,166
|
|
21,717
|
|
|
|
Actuarial loss (gain) on
|
|
|
|
|
|
|
|
|
|
|
|
obligation
|
(889)
|
|
16,734
|
|
57
|
|
15,902
|
|
|
|
Actual benefits paid
|
(1,290)
|
|
(186)
|
|
(878)
|
|
(2,354)
|
|
|
|
Effect of curtailment
|
-
|
|
(395)
|
|
-
|
|
(395)
|
|
|
|
Immediate recognition
of past service cost
|
-
|
|
-
|
|
(523)
|
|
(523)
|
|
|
|
Effect of changes in
|
|
|
|
|
|
|
|
|
|
|
|
actuarial assumptions
|
6,114
|
|
3,112
|
|
1,301
|
|
10,527
|
|
|
|
Benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
at end of year
|
299,410
|
|
48,489
|
|
19,742
|
|
367,641
|
30.
PENSION PLAN (continued)
Labor Law No. 13/2003 (continued)
c. The movements in the present value of the pension cost obligation under the Labor Law for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows (continued):
|
|
|
December 31, 2011 (One Year)
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
IMM
|
|
Total
|
|
|
|
Benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
at beginning of year
|
182,572
|
|
24,340
|
|
10,842
|
|
217,754
|
|
|
|
Actuarial loss (gain) on
|
|
|
|
|
|
|
|
|
|
|
|
obligation
|
75,163
|
|
(5,182)
|
|
(1,442)
|
|
68,539
|
|
|
|
Current service cost
|
24,740
|
|
2,003
|
|
2,612
|
|
29,355
|
|
|
|
Interest cost
|
12,855
|
|
2,064
|
|
969
|
|
15,888
|
|
|
|
Actual benefits paid
|
(1,826)
|
|
(111)
|
|
(255)
|
|
(2,192)
|
|
|
|
Effect of curtailment
|
(38,828)
|
|
(890)
|
|
-
|
|
(39,718)
|
|
|
|
Effect of changes in
|
|
|
|
|
|
|
|
|
|
|
|
actuarial assumptions
|
(3,688)
|
|
1,936
|
|
3,261
|
|
1,509
|
|
|
|
Benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
at end of year
|
250,988
|
|
24,160
|
|
15,987
|
|
291,135
|
.
d.
The movements in the accrued pension cost under the Labor Law for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows:
|
|
|
September 30, 2013 (Nine Months)
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
IMM
|
|
Total
|
|
|
|
Accrued pension cost under
|
|
|
|
|
|
|
|
|
|
|
|
the Labor Law at beginning
|
|
|
|
|
|
|
|
|
|
|
|
of period
|
213,139
|
|
26,432
|
|
14,862
|
|
254,433
|
|
|
|
Periodic Labor Law cost
|
39,364
|
|
6,785
|
|
3,369
|
|
49,518
|
|
|
|
Benefit payment
|
(3,271)
|
|
(90
|
)
|
-
|
|
(3,361)
|
|
|
|
Accrued pension cost under
|
|
|
|
|
|
|
|
|
|
|
|
the Labor Law at end
|
|
|
|
|
|
|
|
|
|
|
|
of period
|
249,232
|
|
33,127
|
|
18,231
|
|
300,590
|
30.
PENSION PLAN (continued)
Labor Law No. 13/2003 (continued)
d.
The movements in the accrued pension cost under the Labor Law for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows (continued):
|
|
|
December 31, 2012 (One Year)
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
IMM
|
|
Total
|
|
|
|
Accrued pension cost under
|
|
|
|
|
|
|
|
|
|
|
|
the Labor Law at beginning
|
|
|
|
|
|
|
|
|
|
|
|
of year
|
165,213
|
|
21,489
|
|
12,327
|
|
199,029
|
|
|
|
Periodic Labor Law cost
|
49,216
|
|
5,129
|
|
3,413
|
|
57,758
|
|
|
|
Benefit payment
|
(1,290)
|
|
(186)
|
|
(878)
|
|
(2,354)
|
|
|
|
Accrued pension cost under
|
|
|
|
|
|
|
|
|
|
|
|
the Labor Law at end
|
|
|
|
|
|
|
|
|
|
|
|
of year
|
213,139
|
|
26,432
|
|
14,862
|
|
254,433
|
|
|
|
December 31, 2011 (One Year)
|
|
|
|
|
|
The Company
|
|
Lintasarta
|
|
IMM
|
|
Total
|
|
|
|
Accrued pension cost under
|
|
|
|
|
|
|
|
|
|
|
|
the Labor Law at beginning
|
|
|
|
|
|
|
|
|
|
|
|
of year
|
164,285
|
|
17,648
|
|
8,944
|
|
190,877
|
|
|
|
Periodic Labor Law cost
|
2,754
|
|
3,952
|
|
3,638
|
|
10,344
|
|
|
|
Benefit payment
|
(1,826)
|
|
(111)
|
|
(255)
|
|
(2,192)
|
|
|
|
Accrued pension cost under
|
|
|
|
|
|
|
|
|
|
|
|
the Labor Law at end
|
|
|
|
|
|
|
|
|
|
|
|
of year
|
165,213
|
|
21,489
|
|
12,327
|
|
199,029
|
The current portion of pension cost under the Labor Law included in accrued expenses (Note 17) amounted to Rp5,453, Rp5,119 and Rp4,700 as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, respectively. The non-current portion included in employee benefit obligations amounted to Rp295,137, Rp249,314 and Rp 194,329 (Note 22) as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, respectively.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN (continued)
Post-retirement Healthcare
The Company provides post-retirement healthcare benefits to its employees who leave the Company after the employees fulfill the early retirement requirement. The spouse and children who have been officially registered in the administration records of the Company are also eligible to receive benefits. If the employees die, the spouse and children are still eligible for the post-retirement healthcare until the spouse dies or remarries and the children reach the age of 25 or get married.
The utilization of post-retirement healthcare is limited to an annual maximum ceiling that refers to monthly pension from Jiwasraya as follows:
·
16 times the Jiwasraya monthly pension for a pensioner who receives monthly pension from Jiwasraya
·
16 times the equality monthly pension for a pensioner who became permanent employee after September 1, 2000
·
16 times the last monthly pension for a pensioner who retires after July 1, 2003 and does not receive Jiwasraya monthly pension.
The net periodic post-retirement healthcare cost for the nine-month periods ended September 30, 2013 and 2012 was calculated based on actuarial valuations as of December 31, 2012 and 2011, respectively. The actuarial valuations were prepared by an independent actuary, using the projected-unit-credit method and applying the following assumptions:
|
|
|
|
|
2013
|
|
2012
|
|
Annual discount rate
|
7.0%
|
|
8.0%
|
|
Ultimate cost trend rate
|
6.0%
|
|
6.0%
|
|
Next year trend rate
|
10.0%
|
|
12.0%
|
|
Period to reach ultimate cost trend rate
|
2 years
|
|
3 years
|
a.
The composition of the periodic post-retirement healthcare cost - net for the nine-month periods ended September 30, 2013 and 2012 is as follows:
|
|
|
|
|
2013
|
|
2012
|
|
|
|
Interest cost
|
53,030
|
|
40,879
|
|
|
|
Service cost
|
30,089
|
|
19,958
|
|
|
|
Amortization of unrecognized past service cost
|
5,747
|
|
5,805
|
|
|
|
Amortization of unrecognized actuarial loss
|
15,547
|
|
2,040
|
|
|
|
Net periodic post-retirement healthcare cost (Note 26)
|
104,413
|
|
68,682
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN (continued)
Post-retirement Healthcare (continued)
b.
The composition of the accrued post-retirement healthcare cost as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011 is as follows:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
Projected benefit obligation
|
1,092,102
|
|
1,017,673
|
|
687,789*
|
|
|
|
Unrecognized actuarial loss
|
(346,569)
|
|
(362,116)
|
|
(103,679)
|
|
|
|
Unrecognized past service cost
|
(1,915)
|
|
(7,662)
|
|
(15,401)
|
|
|
|
Net accrued post-retirement healthcare cost
|
743,618
|
|
647,895
|
|
568,709
|
*net of curtailment effect during 2011 due to VSS (Note 26)
c.
The movements in the present value of defined benefit obligation during the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
Balance at beginning of period/year
|
1,017,673
|
|
687,789
|
|
846,636
|
|
|
|
Interest cost
|
53,030
|
|
54,484
|
|
68,955
|
|
|
|
Service cost
|
30,089
|
|
27,712
|
|
24,149
|
|
|
|
Actual benefits paid
|
(8,690)
|
|
(13,470)
|
|
(10,978)
|
|
|
|
Effect of changes in actuarial assumptions
|
-
|
|
239,705
|
|
150,330
|
|
|
|
Effect of curtailment
|
-
|
|
-
|
|
(230,600)
|
|
|
|
Actuarial gain (loss) on obligation
|
-
|
|
21,453
|
|
(160,703)
|
|
|
|
Balance at end of period/year
|
1,092,102
|
|
1,017,673
|
|
687,789
|
d.
The movements in the accrued post-retirement healthcare cost during the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 are as follows:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
Balance at beginning of period/year
|
647,895
|
|
568,709
|
|
653,940
|
|
|
|
Net periodic post-retirement healthcare cost (income)
|
104,413
|
|
92,656
|
|
(74,253)
|
|
|
|
Benefit payment
|
(8,690)
|
|
(13,470)
|
|
(10,978)
|
|
|
|
Balance at end of period/year
|
743,618
|
|
647,895
|
|
568,709
|
The current portion of post-retirement healthcare cost included in accrued expenses - employee benefits (Note 17) amounted to Rp15,158, Rp15,160 and Rp12,957 as of September 30, 2013, December 31, 2012, and January 1, 2012 / December 31, 2011, respectively. The non-current portion included in employee benefit obligations amounted to Rp728,460, Rp632,737 and Rp555,752 as of September 30, 2013, December 31, 2012, and January 1, 2012 / December 31, 2011, respectively (Note 22).
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN (continued)
Post-retirement Healthcare (continued)
e.
The effect of a one percentage point change in assumed post-retirement healthcare cost trend rate would result in aggregate service and interest costs for the nine-month period ended September 30, 2013 and years ended December 31, 2012 and 2011 and in accumulated post-retirement healthcare benefit obligation as of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011 as follows:
|
|
|
|
|
|
|
|
|
January 1,
|
|
|
|
|
|
|
|
|
|
2012 /
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
Service and interest costs
|
107,185
|
|
82,196
|
|
118,454
|
|
|
|
Accumulated post-retirement healthcare benefit
|
|
|
|
|
|
|
|
|
|
obligation
|
1,369,164
|
|
1,270,669
|
|
844,612
|
|
|
|
Decrease
|
|
|
|
|
|
|
|
|
Service and interest costs
|
65,223
|
|
82,196
|
|
73,626
|
|
|
|
Accumulated post-retirement healthcare benefit
|
|
|
|
|
|
|
|
|
|
obligation
|
881,386
|
|
824,853
|
|
566,627
|
Amounts of employee benefits for previous annual periods:
Defined Benefit Pension Plan
January 1, 2012 /
December 31,
December 31,
December 31,
December 31,
December 31,
2012
2011
2010
2009
2008
The Company
Plan assets
513,316
476,890
793,664
763,244
763,700
Projected benefit obligation
(493,854
)
(409,808
)
(700,410
)
(684,611)(512,513)
Excess of plan assets over
projected benefit obligation
19,462
67,082
93,254
78,633
251,187
Experience gain (loss) adjustments
arising on plan liabilities
(2,434
)
12,066
156,063
(624)10,588
Experience loss (gain) adjustments
arising on plan assets
(7,815
)
(14,651
)
12,000
8,910(37,546)
Lintasarta
Plan assets
63,019
62,012
59,294
50,344
41,499
Projected benefit obligation
(60,355
)
(53,266
)
(50,215
)
(41,816)(28,726)
Excess of plan assets over
projected benefit obligation
2,664
8,746
9,079
8,528
12,773
Experience gain (loss) adjustments
arising on plan liabilities
(356)
560
486
1,100
(3,194)
Experience loss adjustments
arising on plan assets
3,175
610
2,677
3,000
1,632
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
30.
PENSION PLAN (continued)
Labor Law No. 13/2003
January 1, 2012 /
December 31,
December 31,
December 31,
December 31,
December 31,
2012
2011
2010
2009
2008
The Company
Projected benefit obligation
(299,410
)
(250,988
)
(182,572
)
(159,055)(141,316)
Experience gain (loss) adjustments
arising on plan liabilities
889
(75,163)
(1,166
)
3,316
(27,284)
Net
(298,521
)
(326,151
)
(183,738
)
(155,739)(168,600)
Lintasarta
Projected benefit obligation
(48,489
)
(24,160
)
(24,340
)
(22,173)(11,464)
Experience gain (loss) adjustments
arising on plan liabilities
(16,734
)
5,182
890
78(2,285)
Net
(65,223
)
(18,978
)
(23,450
)
(22,095)(13,749)
IMM
Projected benefit obligation
(19,742
)
(15,987
)
(10,842
)
(6,660)(3,674)
Experience gain (loss) adjustments
arising on plan liabilities
(57
)
1,442
(804
)
368666
Net
(19,799
)
(14,545
)
(11,646
)
(6,292)(3,008)
Post-retirement Healthcare
January 1, 2012 /
December 31,
December 31,
December 31,
December 31,
December 31,
2012
2011
2010
2009
2008
The Company
Projected benefit obligation
(1,017,673
)
(687,789
)
(846,636
)
(605,660)(492,615)
Experience gain (loss) adjustments
arising on plan liabilities
(21,453)
160,703
38,574
37,176
150,730
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
31.
ACCOUNTS AND TRANSACTIONS WITH RELATED PARTIES
The details of the accounts and the significant transactions entered into with related parties are as follows:
|
|
|
|
|
Amount
|
|
Percentange to Total Assets/Liabilities (%)
|
|
|
|
|
|
|
|
|
|
January 1,2012
|
|
|
|
|
|
January 1,2012
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-related entities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State-owned banks
|
902,993
|
|
1,534,068
|
|
977,960
|
|
1.66
|
|
2.78
|
|
1.84
|
|
Accounts receivable - trade
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-related entities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State-owned companies
|
757,191
|
|
593,773
|
|
358,423
|
|
1.40
|
|
1.08
|
|
0.68
|
|
|
Ultimate parent company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ooredoo
|
24,655
|
|
23,509
|
|
6,927
|
|
0.03
|
|
0.04
|
|
0.01
|
|
|
Total
|
781,846
|
|
617,282
|
|
365,350
|
|
1.43
|
|
1.12
|
|
0.69
|
|
|
Less allowance for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impairment
|
22,382
|
|
42,632
|
|
47,107
|
|
0.04
|
|
0.08
|
|
0.09
|
|
|
Net
|
759,464
|
|
574,650
|
|
318,243
|
|
1.39
|
|
1.04
|
|
0.60
|
|
Prepaid expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-related entities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State-owned companies
|
19,072
|
|
6,543
|
|
8,222
|
|
0.03
|
|
0.01
|
|
0.01
|
|
|
Governmental departments
|
332
|
|
84
|
|
205
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
Entity under common significant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
influence:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kopindosat
|
1,904
|
|
2,579
|
|
3,681
|
|
0.00
|
|
0.01
|
|
0.01
|
|
|
Total
|
21,308
|
|
9,206
|
|
12,108
|
|
0.03
|
|
0.02
|
|
0.02
|
|
Other current and non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets - financial and non-financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-related entities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State-owned banks
|
80,742
|
|
162,071
|
|
193,679
|
|
0.14
|
|
0.36
|
|
0.36
|
|
|
|
Governmental departments
|
87
|
|
87
|
|
87
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
|
|
|
80,829
|
|
162,158
|
|
193,766
|
|
0.14
|
|
0.36
|
|
0.36
|
|
Due from related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity under common significant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
influence:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kopindosat
|
3,459
|
|
6,188
|
|
6,012
|
|
0.01
|
|
0.01
|
|
0.01
|
|
|
Government-related entities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State-owned companies
|
2,571
|
|
1,870
|
|
1,583
|
|
0.00
|
|
0.01
|
|
0.00
|
|
|
Key management personnel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior management
|
1,818
|
|
1,621
|
|
3,020
|
|
0.00
|
|
0.00
|
|
0.01
|
|
|
Ultimate parent company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ooredoo
|
-
|
|
694
|
|
54
|
|
-
|
|
0.00
|
|
0.00
|
|
|
Total
|
7,848
|
|
10,373
|
|
10,669
|
|
0.01
|
|
0.02
|
|
0.02
|
|
|
Less allowance for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impairment
|
15
|
|
15
|
|
15
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
Net
|
7,833
|
|
10,358
|
|
10,654
|
|
0.01
|
|
0.02
|
|
0.02
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
31.
ACCOUNTS AND TRANSACTIONS WITH RELATED PARTIES (continued)
Amount
Percentage to Total Assets/Liabilities (%)
January 1, 2012 /
January 1, 2012 /
September 30,
December 31,
December 31,
September 30,
December 31,
December 31,
2013
2012
2011
2013
2012
2011
Long-term prepaid rentals
- net of current portion
Government-related
entities:
State-owned companies
20,895
21,346
21,587
0.04
0.04
0.04
Entity under common
significant influence:
Kopindosat
6,478
4,275
9,962
0.01
0.01
0.02
Total
27,373
25,621
31,549
0.05
0.05
0.06
Advances andLong-term advances
Entity under common
significant influence:
Kopindosat
2
-
12,148
0.00
-
0.02
Government-related entities:
State-owned companies
-
-
44
-
-
0.00
Total
2
-
12,192
0.00
-
0.02
Long-term prepaid pension - net
of current portion (Note 30)
Government-related entities:
State-owned companies
81,388
88,845
103,181
0.14
0.16
0.19
Short-term bank loan (Note 14)
Government-related entity:
State-owned bank
1,499,769
299,529
1,499,256
4.07
0.84
4.38
Accounts payable - trade
Government-related entities:
State-owned companies
60,869
22,614
23,233
0.16
0.06
0.07
Ultimate parent company
Ooredoo
144
36
348
0.00
0.00
0.00
Total
61,013
22,650
23,581
0.16
0.06
0.07
Procurement payable (Note 15)
Entities under common significant
influence:
Kopindosat
11,826
11,875
9,872
0.03
0.03
0.03
PT Personel Alih Daya
10,357
17,993
16,319
0.03
0.05
0.05
Government-related entities:
State-owned companies
4,791
13,915
9,882
0.01
0.04
0.03
Total
26,974
43,783
36,073
0.07
0.12
0.11
Accrued expenses
Government-related entities:
State-owned companies
99,744
56,590
66,399
0.27
0.15
0.19
Entities under common significant
influence:
PT Personel Alih Daya
45,065
40,420
18,222
0.12
0.12
0.05
Kopindosat
16,590
10,265
5,817
0.04
0.03
0.02
Key management personnel:
Senior management
-
43,610
37,851
-
0.12
0.11
Total
161,399
150,885
128,289
0.43
0.42
0.37
Due to related parties
Ultimate parent company:
Ooredoo
15,114
25,968
552
0.04
0.07
0.00
Entities under common significant
influence:
PT Personel Alih Daya
12,826
-
-
0.05
-
-
Kopindosat
5,176
-
-
0.00
-
-
Government-related entities:
State-owned companies
2,054
16,821
14,928
0.00
0.05
0.05
Total
35,170
42,789
15,480
0.09
0.12
0.05
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
31.
ACCOUNTS AND TRANSACTIONS WITH RELATED PARTIES (continued)
Amount
Percentage to Total Assets/Liabilities (%)
January 1, 2012 /
January 1, 2012 /
September 30,
December 31,
December 31,
September 30,
December 31,
December 31,
2013
2012
2011
2013
2012
2011
Other current and non-current
liabilities - financial
and non-financial
Government-related entities:
Governmental departments
-
4,131
2,141
-
0.01
0.01
State-owned companies
-
-
6,455
-
-
0.02
Total
-
4,131
8,596
-
0.01
0.03
Loan payable (including current
maturities) (Note 18)
Government-related entity:
State-owned bank
-
-
998,843
-
-
2.92
Percentage to Total Revenue (%)
Amount
or Expenses (%)
Nine-month periods ended September 30,
Nine-month periods ended September 30,
2013
2012
2013
2012
Revenues (Note 24)
Government-related entities:
State-owned companies
997,435
1,050,371
5.60
6.45
Governmental departments
530,324
152,505
2.98
0.93
Ultimate parent company:
Ooredoo
63,775
60,430
0.36
0.38
Entity under common significant
influence:
Kopindosat
493
456
0.00
0.00
Total
1,592,027
1,263,762
8.94
7.76
Expenses
Cost of services
Government-related entities:
State-owned companies
1,749,474
1,319,856
10.59
9.75
Entities under common significant
influence:
Kopindosat
86,116
16,278
0.52
0.12
PT Personel Alih Daya
82,472
66,698
0.50
0.49
Ultimate parent company:
Ooredoo
49,769
43,973
0.30
0.32
Total
1,967,831
1,446,805
11.91
10.68
Personnel
Key management personnel:
Senior management
Short-term employee benefits
124,300
105,275
0.75
0.77
Other long-term benefits
8,501
6,150
0.06
0.05
Sub-total
132,801
111,425
0.81
0.82
Government-related entities:
State-owned companies
14,545
11,815
0.09
0.09
Total
147,346
123,240
0.90
0.91
Marketing
Entities under common significant
influence:
PT Personel Alih Daya
78,731
67,629
0.48
0.50
Kopindosat
14,049
14,709
0.08
0.10
Government-related entities:
State-owned companies
-
3
-
0.00
Total
92,780
82,341
0.56
0.60
31.
ACCOUNTS AND TRANSACTIONS WITH RELATED PARTIES (continued)
|
|
|
|
|
|
|
|
|
|
Percentange to Total Revenue(%)
|
|
|
|
|
|
|
Amount
|
|
or Expenses (%)
|
|
|
|
|
|
|
Nine-month periods ended September 30,
|
|
Nine-month periods ended September 30,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
General and administration
|
|
|
|
|
|
|
|
|
|
|
Government-related entities
|
|
|
|
|
|
|
|
|
|
|
State-owned companies
|
|
29,705
|
|
6,745
|
|
0.18
|
|
0.06
|
|
|
Entities under common significant
|
|
|
|
|
|
|
|
|
|
|
influence:
|
|
|
|
|
|
|
|
|
|
|
Kopindosat
|
|
19,136
|
|
16,492
|
|
0.12
|
|
0.12
|
|
|
PT Personel Alih Daya
|
|
16,512
|
|
9,387
|
|
0.10
|
|
0.06
|
|
|
Total
|
|
65,353
|
|
32,624
|
|
0.40
|
|
0.24
|
|
Interest income (financing cost) - net
|
|
|
|
|
|
|
|
|
|
|
Government-related entities:
|
|
|
|
|
|
|
|
|
|
|
State-owned banks
|
|
(6,788)
|
|
(55,455)
|
|
(0.18)
|
|
(2.59)
|
The relationship and nature of account balances/transactions with related parties are as follows:
|
|
|
|
|
|
Nature of Account
|
|
No
|
|
Related Parties
|
|
Relationship
|
|
Balances/Transactions
|
|
1.
|
State-owned banks
|
|
Government-
related entities
|
|
Cash and cash equivalents, other current and non-current financial and non-financial assets, short-term bank loan, loan payable and interest income (financing cost) - net
|
|
|
|
|
|
|
|
2.
|
|
State-owned companies
|
|
Government-
related entities
|
|
Accounts receivable - trade, prepaidexpenses, due from related parties,long-term prepaid rentals, advances and long-termadvances, long-term prepaidpension, accounts payable - trade, procurement payable, accrued expenses, due to related parties,other current and non-currentfinancial and non-financial liabilities, revenues, expenses - cost of services, expenses - personnel, expenses - marketing and expenses - general and administration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
31.
ACCOUNTS AND TRANSACTIONS WITH RELATED PARTIES (continued)
|
|
|
|
|
|
Nature of Account
|
|
No
|
|
Related Parties
|
|
Relationship
|
|
Balances/Transactions
|
|
3.
|
|
Ooredoo
|
|
Ultimate parent
company
|
|
Accounts receivable - trade, due from
related parties, accounts payable -trade, due to related parties, revenues, expenses - cost of services and expenses - general and administration
|
|
|
|
|
|
|
|
|
|
4.
|
|
Governmental departments
|
|
Government-related
entities
|
|
Prepaid expenses, other current andnon-current financial and non-financial assets, other current and non-current financial and non-financial liabilities, revenues - MIDI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.
|
|
Kopindosat
|
|
Entity under
common significant
influence
|
|
Prepaid expenses, due from related parties, long-term prepaid rentals, advances and long-term advances, procurement payable, accrued expenses, due to related parties, revenues, expenses - cost of services, expenses - marketing and expenses - general and administration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.
|
|
Senior management (consist of members of Board of Directors and Commissioners and those who directly report to the Board of Directors)
|
|
Key management
personnel
|
|
Due from related parties, accruedexpenses and expenses - personnel
|
|
|
|
|
|
|
|
|
|
7.
|
|
PT Personel Alih Daya
|
|
Entity under
common significant
influence
|
|
Procurement payable, accrued expenses, due to related parties, expenses - cost of services, expenses -marketing and expenses - general and administration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
32.
DISTRIBUTION OF PROFIT AND APPROPRIATION OF RETAINED EARNINGS
At the Companys SAGM, the shareholders approved, among others, the appropriation of annual profit for cash dividend distribution, as follows, and the utilization of the remaining amount for reinvestment and working capital:
SAGM Date
|
|
Dividend
per Share (Rp)
|
|
Dividend Payment Date
|
2011 Profit
|
|
|
|
|
May 14, 2012
|
|
76.83
|
|
June 26, 2012*
|
|
|
|
|
|
2012 Profit
|
|
|
|
|
June 18, 2013
|
|
34.52
|
|
July 29, 2013**
|
|
|
|
|
|
|
|
*
Dividend for the Government was paid in accordance with the prevailing laws and regulations in Indonesia. On June 11 and June 26, 2012, the Company paid dividend amounting to Rp59,668 and Rp357,821, respectively, to the Government and other stockholders for the dividend declared on May 14, 2012.
**
Dividend for the Government was paid in accordance with the prevailing laws and regulations in Indonesia. On July 29, 2013, the Company paid dividend amounting to Rp26,809 and Rp160,770, respectively, to the Government and other stockholders for the dividend declared on June 18, 2013.
33.
SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCY
a.
As of September 30, 2013, commitments on capital expenditures which are contractual agreements not yet realized relate to the procurement and installation of property and equipment amounting to US$112,738 and Rp1,703,153 (Note 39j).
The significant commitments on capital expenditures are as follows:
|
|
|
|
|
|
|
|
|
Amount of
|
|
|
|
|
|
|
|
|
|
|
|
Contract/Purchase
|
|
Amount of
|
|
|
|
|
|
|
|
|
|
Orders (POs)
|
|
Contract/POs Not Yet
|
|
|
|
Contract Date
|
|
Contract Description
|
|
Vendor
|
|
Already Issued
|
|
Served
|
|
|
|
|
October 1, 2010 &
|
|
Procurement of Telecommunications
|
|
PT Ericsson Indonesia and
|
|
US$603,570 and
|
|
US$35,788 and
|
|
|
|
|
December 10, 2012
|
|
Equipment and Related Services
|
|
Ericsson AB
|
|
Rp2,176,593
|
|
Rp532,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 16, 2010 &
|
|
Procurement of Telecommunications
|
|
PT Nokia Siemens Networks and
|
|
US$482,472 and
|
|
US$20,701 and
|
|
|
|
|
December 10, 2012
|
|
Infrastructure
|
|
Nokia Siemens Networks Oy
|
|
Rp2,003,504
|
|
Rp399,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 2, 2010 &
|
|
Procurement of Telecommunications
|
|
PT Huawei Tech Investment
|
|
US$175,830 and
|
|
US$19,243 and
|
|
|
|
|
December 21, 2012
|
|
Infrastructure
|
|
|
|
Rp564,257
|
|
Rp283,125
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
33. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCY (continued)
b.
On September 11, 2013, the Company and QNBK,a related party, entered into an agreement on
Indosat m - Wallet
services. Based on the agreement, the Company and QNBK will collaborate to develop the Companys
m
-
Wallet
services.
c.
On July 15, 2013, the Company entered into an amendment of Loan Agreement with BCA. Based on the loan amendment agreement, BCA agreed to provide the Company an additional 5-year unsecured investment credit facility with a maximum amount of Rp1,000,000. The loan from the investment credit facility will bear interest at the annual fixed rate of 8.7% for the 5-year period. Subsequently, on July 23, 2013, BCA issued a letter to increase the interest rate for the 5-year unsecured investment credit facility from 8.7% to 9.0% effective on August 26, 2013. Furthermore, on September 10, 2013, BCA issued a letter to further increase the interest rate of such facility to 9.25% effective September 26, 2013. As of September 30, 2013, the Company had not made any drawdown from this credit facility.
d.
On May 1, 2013, the Company and Orbital Sciences Corporation signed the Authorization to Proceed (ATP) for the procurement of new satellite Palapa E (Note 1a). The final contract is expected to be finalized by the end of 2013.
e.
In 2012, the Company and Ooredoo, the Groups ultimate parent company, entered into a cooperation agreement, whereas Ooredoo agreed to provide several professional experts to work in the Company, to provide the Group with their experience and knowledge to increase the effectiveness of the Groups operational and business activities. The agreement covers a 10-year period. For the nine-month period ended September 30, 2013, the Company recorded the cost for the provision of the professional experts totaling Rp37,330 as part of General and Administration Expense - Professional Fees (Note 27).
f.
On January 18, 2012, the Company and IMM, a subsidiary, were investigated by the Attorney Generals Office in connection with the cooperation agreement between the Company and IMM to provide 3G-based broadband internet services. IMM had been accused of illegally using the Companys 3G license (Note 1a) without paying annual frequency fee, concession fee and tender upfront fee. The MOCIT, as well as the Indonesian Regulatory Body (BRTI), has made a public statement that IMM has not breached any laws / prevailing rules; nevertheless, the case continues to be investigated by the Attorney Generals Office.
On May 1, 2013, the panel of judges of the Jakarta Administrative Court issued a favorable verdict in support of the Company and IMM's claim. The Jakarta Administrative Court (i) found the decision and audit results of the Finance and Development Supervisory Agency (LHPKKN BPKP) to be legally flawed, and ordered for their revocation; and (ii) upheld its interim verdict to suspend the implementation of Badan Pengawasan Keuangan dan Pembangunans (BPKP) decision until this verdict has become final and binding ("inkracht verklaard"). This verdict negates the losses to the State argument and should be beneficial in the Company and IMMS defense of the ongoing case at the Corruption Court.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
33. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCY (continued)
Up to May 8, 2013, the Corruption Court has examined 24 witnesses, including expert witnesses, 22 of whom have testified that the cooperation agreement between IMM and the Company does not breach the prevailing laws and regulations, and there was no sharing of the 2.1 GHz frequency band as alleged, with only two expert witnesses having different opinion.
On July 8, 2013, the Corruption Court issued final verdict which found Mr. Indar Atmanto (former IMM President Director) guilty by virtue of representing IMM in entering into a cooperation agreement with the Company, and sentenced him to 4 years of imprisonment as well as imposing monetary fine of Rp200or 3 months of confinement. In addition, IMM was also ordered to pay monetary fine of Rp1,358,343to compensate for State losses. A statement of appeal was formally lodged by Mr. Indar Atmanto on July 11, 2013 and subsequently the AGO also submitted its appeal on July 15, 2013. It is confirmed by the Company's external lawyersthat, based on the appeal process on the case of Mr. Indar Atmanto and the support from the relevant ministry and industry, there will be a re-trial process as if the judicial process is started from zero. Furthermore, the Companys external lawyers also confirmed that they believe that there is no liability to be recognized by IMM at this stage, and the Company and IMM have a strong legal basis to defend their position.
As of September 30, 2013, the Company did not accrue any liabilities related to the legal case because the Company believes, as supported by the MOCIT, that the cooperation agreement with IMM does not breach any laws.
g.
On December 30, 2011, Lintasarta, entered into agreements with MOCIT-
Balai Telekomunikasi dan Informasi Pedesaan
(MOCIT-BTIP), whereby Lintasarta agreed to provide Public Access Services for Wireless Fidelity (WiFi) Internet in
Kewajiban Pelayanan Umum
/ Universal Service Obligation (KPU/USO) Regencies (
Kabupaten
) (
Penyediaan Jasa Akses Publik Layanan Internet WiFi Kabupaten KPU/USO
) for Work Packages (
Paket Pekerjaan
) 3 and 6 that cover the provinces of West Kalimantan, South Kalimantan, Central Kalimantan, East Kalimantan, Bali, West Nusa Tenggara and East Nusa Tenggara. The agreements cover a four-year concession period and have contract values of Rp71,992 and Rp44,422 for Work Packages 3 and 6, respectively. In accordance with the contract, Lintasartareceived advance payments representing 15% of the contract value. Fixed payment for services is received on a quarterly basis based on performance evaluation. At the end of the concession period, Lintasarta must transfer the assets subject to the concession agreement back to the local government.
Subsequently on January 10, 2012, Lintasarta, also entered into an agreement with MOCIT-BTIP for the provision of Public Access Services for Wireless Fidelity (WiFi) Internet in KPU/USO Regencies (
Kabupaten KPU/USO
) (
Penyediaan Jasa Akses Publik Layanan Internet WiFi Kabupaten KPU/USO
) for Work Package (
Paket Pekerjaan
) 4 that covers the provinces of Gorontalo, West Sulawesi, South Sulawesi, Central Sulawesi, South East Sulawesi and North Sulawesi with contract value of Rp91,491. The terms and conditions of this agreement are consistent with those of the earlier agreement above.
The consideration received or receivable in exchange for Lintasartas infrastructure construction services or its acquisition of infrastructure to be used in the arrangements was recognized as a financial asset to the extent that Lintasarta has an unconditional contractual right to receive cash or other financial asset for its construction services from or at the direction of the grantor. As of September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011, the current
33.
SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCY(continued)
portions of outstanding receivables arising from this service concession arrangement amounting to Rp15,258 and Rp nil, respectively are classified as part of Trade Receivables - Related Parties, while the long-term portions of the outstanding receivables amounting to Rp8,383 and Rp8,974, respectively, are classified as part of Other Non-current Financial Assets. Revenues from construction services earned by Lintasarta for the nine-month periods ended September 30, 2013 and 2012 amounting to Rp12,487 and Rp17,938 are classified as part of Revenues - MIDI.
On February 8, 2012, Lintasarta entered into an agreement with PT Widtech Indonesia, for the procurement of equipment and infrastructure required for the construction of WiFi, as agreed with the MOCIT-BTIP above, with total contract value amounting to Rp121,927.
h.
In May 2011 to March 2012, the Company issued several POs to PT Nokia Siemens Network and Nokia Siemens Network OY with total amount of US$34,829 and Rp208,948 for the procurement of cellular technical equipment in the Sumatra and Java Areas. Based on the POs, the Company agreed to exchange certain existing cellular equipment with new equipment units and pay US$11,462 and Rp171,844 to Nokia for the installation services and additional equipment. For the nine-month period ended September 30, 2013, the carrying amount of the cellular technical equipment units given up amounted to Rp57,069 (Note 8) and the accumulated carrying amount of such equipment up to September 30, 2013 amounted to Rp446,468.
i.
On April 15, 2010, Lintasarta, a subsidiary entered into agreements with MOCIT-BTIP, whereby Lintasarta agreed to provide
Pusat Layanan Jasa Akses Internet Kecamatan
(Center for Internet Access and Services in Rural Areas) (PLIK) for Work Packages (
Paket Pekerjaan
) 7, 8 and 9 that cover the provinces of Bali, West Nusa Tenggara, East Nusa Tenggara, West Kalimantan, South Kalimantan, East Kalimantan, Central Kalimantan, Maluku and Papua. On December 22, 2010, the agreements were amended to increase the contract value. The agreements are non-cancellable and cover four years starting from October 15, 2010 with contract value amounting to Rp91,895, Rp143,668 and Rp116,721 for Work Packages 7, 8 and 9, respectively. In accordance with the agreements, Lintasarta placed its time deposits totaling Rp18,200 as a performance bond for the four-year contract period, which deposits are classified as part of Other Non-current Financial Assets. In accordance with the agreements, Lintasarta received advance payments representing 20% of the contract value. Fixed payment for services is received on a quarterly basis based on performance evaluation. At the end of the agreements, Lintasarta and MOCIT-BTIP plan to renegotiate the terms and conditions of any new arrangements.
On December 12, 2010, Lintasarta entered into agreements with MOCIT-BTIP to provide Pusat Layanan Jasa Akses Internet Kecamatan Bergerak (Mobile Center for Internet Access and Services in Rural Areas) (PLIKB) for Work Packages 2, 3, 11, 15, 16 and 18 that cover the provinces of North Sumatra, West Sumatra, East Nusa Tenggara, West Kalimantan, South Kalimantan and East Kalimantan. The agreements are non-cancellable and cover four years starting on September 22, 2011 with contract values amounting to Rp79,533, Rp92,003, Rp60,149, Rp71,879, Rp84,583 and Rp69,830 for Work Packages 2, 3, 11, 15, 16 and 18, respectively. On October 19, 2011, the agreements were amended to change the work starting date from September 22, 2011 to December 22, 2011. In accordance with the agreements, Lintasarta received advance payments representing 15% of the contract value. Fixed payment for services is received on a quarterly basis based on performance evaluation. At the end of the concession period, Lintasarta must transfer all assets subject to the concession agreement to the local government.
33.
SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCY (continued)
On May 6, 2010, Lintasarta entered into an agreement with PT Wira Eka Bhakti (WEB), for the procurement of equipment and infrastructure required for the construction of PLIK, as agreed with MOCIT-BTIP above, with total contract value amounting to Rp189,704. The agreement had been amended several times, with the latest amendment dated March 9, 2011 increasing the contract value to Rp208,361.
On March 23, 2011, Lintasarta entered into agreements with WEB and PT Personel Alih Daya (a related party), for the procurement of equipment and infrastructure required for the construction of PLIKB, as agreed with MOCIT-BTIP above, with total contract values amounting to Rp276,274 and Rp60,739, respectively.
As of September 30, 2013and December 31, 2012 the current portions of outstanding receivables amounting to Rp345,724 and Rp283,945, respectively, are classified as part of Trade Receivables - Related Parties, while the long-term portions amounting to Rp6,143 and Rp45,097, respectively, are classified as part of Other Non-current Financial Assets.
Revenue from construction services earned by Lintasarta for the nine-month period ended September 30, 2012 amounting to Rp33,439 is classified as part of Revenues - MIDI.
j.
On January 29, April 15, May 24 and June 3 in 2010, and February 4 and 10 in 2011, the Company agreed to lease part of its telecommunications towers and sites to PT Hutchison CP Telecommunications (Hutchison) for a period of 12 years, toPT Axis Telecom (previously PT Natrindo Telepon Selular) (Axis) for a period of 10 years, to PT XL Axiata Tbk (XL Axiata) for a period of 10 years, to PT Berca Global Access (Berca) for a period of 10 years, to PT Dayamitra Telekomunikasi (Mitratel) for a period of 10 years and to PT First Media Tbk (FM) for a period of 5 years, respectively. Hutchison, Axisand XL Axiata (on annual basis), Berca and Mitratel (on quarterly basis) and FM (on semi-annual basis) are required to pay the lease and maintenance fees in advance which are recorded as part of unearned income.
On August 18, 2011, the Company and Hutchison amended their tower leasing agreement covering changes in certain arrangements with respect to, among others, amount of compensation paid to landlords or residents around the leased site shouldered by the Company, penalty charged for overdue payments and effective lease period.
Future minimum lease receivables under the agreements as at September 30, 2013, December 31, 2012 and January 1, 2012 / December 31, 2011 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
January 1, 2012 /
|
|
|
|
|
|
2013
|
|
2012
|
|
December 31, 2011
|
|
|
|
Within one year
|
427,662
|
|
655,894
|
|
471,284
|
|
|
|
After one year but not more than five years
|
2,098,020
|
|
2,597,263
|
|
1,874,860
|
|
|
|
More than five years
|
960,663
|
|
2,211,422
|
|
1,817,218
|
|
|
|
Total
|
3,486,345
|
|
5,464,579
|
|
4,163,362
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
33.
SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCY (continued)
k.
During 2008-2013, the Company entered into several agreements with PT Solusi Menara Indonesia, PT Professional Telekomunikasi Indonesia (Protelindo), PT Solusindo Kreasi Pratama, XL Axiata, PT Dayamitra Telekomunikasi, PT BIT Teknologi Nusantara, PT Solusi Tunas Pratama, PT Corona Telecommunication Services, PT Mitrayasa Sarana Informasi, Tower Bersama (Note 29) and for the Company to lease part of spaces in their telecommunication towers and sites for an initial period of 10 years. The Company may extend the lease period for another 10 years, with additional lease fees based on the inflation rates in Indonesia.
Future minimum rentals payable under the finance lease agreements as at September 30, 2013 are as follows:
|
|
|
|
|
Minimum
|
|
Present value
|
|
|
|
|
|
payments
|
|
of payments
|
|
|
|
Within one year
|
730,605
|
|
318,965
|
|
|
|
After one year but not more than five years
|
2,864,132
|
|
1,679,467
|
|
|
|
More than five years
|
2,121,476
|
|
1,775,581
|
|
|
|
Total
|
5,716,213
|
|
3,774,013
|
|
|
|
Less amount representing finance charge
|
1,942,200
|
|
-
|
|
|
|
Present value of minimum lease payments
|
3,774,013
|
|
3,774,013
|
|
|
|
|
|
|
|
|
|
|
|
Current portion (presented as part of Other Current Financial Liabilities)
|
|
|
318,965
|
|
|
|
Long-term portion (presented as Obligations under Finance Lease)
|
|
|
3,455,048
|
|
|
|
Total
|
|
|
3,774,013
|
l.
The Company and IMM have committed to pay annual radio frequency fee over the 3G and BWA licenses period, provided the Company and IMM hold the 3G and BWA licenses. The amount of annual payment is based on the payment scheme set out in Regulations
No. 7/PER/M.KOMINFO/2/2006, No. 268/KEP/M.KOMINFO/9/2009 and No. 237/KEP/ M.KOMINFO/7/2009 dated February 8, 2006, September 1, 2009 and July 27, 2009, respectively, of the MOCIT. The Company and IMM paid the annual frequency fee for the 3G and BWA licenses totaling Rp620,417 and Rp548,154 for the nine-month period ended September 30, 2013 and year ended December 31, 2012, respectively.
33.
SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCY (continued)
m.
On July 20, 2005, the Company obtained facilities from HSBC to fund the Companys short-term working capital needs. The facilities agreement has been amended several times. On September 20, 2011, the expiration date of the facilities was extended up to April 30, 2012 and the interest rate and certain provisions of the agreement were changed as follows:
·
Overdraft facility amounting to US$2,000 (including overdraft facility denominated in rupiah amounting to Rp17,000). Interest is charged on daily balances at 3.75% per annum and 6% per annum below the HSBC Best Lending Rate for the loan portions denominated in rupiah and U.S. dollar, respectively.
·
Revolving loan facility amounting to US$30,000 (including revolving loan denominated in rupiah amounting to Rp255,000). The loan matures within a maximum period of 180 days and can be drawn in tranches with minimum amounts of US$500 and Rp500 for loans denominated in U.S. dollar and rupiah, respectively. Interest is charged on daily balances at 2.25% per annum above the HSBC Cost of Fund Rate for the loans denominated either in rupiah or U.S. dollar.
·
The facilities are considered uncommitted facility based on guidelines No.12/516/DPNP/DPnP dated September 21, 2010 issued by the Central Bank of Indonesia; consequently, these facilities can be automatically cancelled by HSBC in the event that the Companys credit collectibility declines to either substandard, doubtful or loss based on HSBCs assessment pursuant to the general criteria set out by the Central Bank of Indonesia.
On March 27, 2012, the Company received the letter from HSBCextending these facilities up to April 30, 2013. Furthermore, on July 8, 2013, the Company received the letter from HSBC extending these facilities up to June 30, 2014.
b.
In 1994, the Company was appointed as a Financial Administrator (FA) by a consortium which was established to build and sell/lease Asia Pacific Cable Network (APCN) submarine cable in countries in the Asia-Pacific Region. As an FA, the Company collected and distributed funds from the sale of APCNs Indefeasible Right of Use (IRU), Defined Underwritten Capacity (DUC) and Occasional Commercial Use (OCU).
The funds received from the sale of IRU, DUC and OCU and for upgrading the APCN cable did not belong to the Company and, therefore, were not recorded in the Companys books. However, the Company managed these funds in separate accounts.
As of September 30, 2013, the balance of the funds (including interest earned) which are under the Companys custody amounted to US$3,952. Besides receiving their share of the funds from the sale of IRU, DUC and OCU, the members of the consortium also received their share of the interest earned by the above funds.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
33.
SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCY (continued)
o.
Other agreements made with Telkom are as follows:
·
Under a cooperation agreement, the compensation to Telkom relating to leased circuit/ channel services, such as world link and bit link, is calculated at 15% of the Companys collected revenues from such services.
The Company and Satelindo also lease circuits from Telkom to link Jakarta, Medan and Surabaya.
·
In 1994, Satelindo entered into a land transfer agreement for the transfer of Telkoms rights to use a 134,925-square meter land property located at Daan Mogot, West Jakarta, where Satelindos earth control station is currently situated. The land transfer agreement enables Satelindo to use the land for a period of 30 years from the date of the agreement, for a price equivalent to US$40,000 less Rp43,220. The period of the agreement may be extended based on mutual agreement.
The aforementioned agreement was subsequently superseded by a land rental agreement dated December 6, 2001, generally under the same terms as those of the land transfer agreement.
·
In 1999, Lintasarta entered into an agreement with Telkom, whereby Telkom agreed to lease transponder to Lintasarta. This agreement has been amended several times, the latest amendment of which is based on the tenth amendment agreement dated March 7, 2012. Transponder lease expense charged to operations amounting to Rp24,783 for the ninemonths ended September 30, 2013is presented as part of Expenses - Cost of Services- Leased Circuits (Note 25) in the interim consolidated statement of comprehensive income.
34.
TARIFF SYSTEM
a.
International telecommunications services
The service rates (tariffs) for overseas exchange carriers are set based on the international telecommunications regulations established by the International Telecommunications Union (ITU).
These regulations require the international telecommunications administrations to establish and revise, under mutual agreement, accounting rates to be applied among them, taking into account the cost of providing specific telecommunications services and relevant recommendations from the Consultative Committee on International Telegraph and Telephone (CCITT). The rates are divided into terminal shares payable to the administrations of terminal countries and, where appropriate, into transit shares payable to the administrations of transit countries.
The ITU also regulates that the monetary unit to be used, in the absence of special arrangements, shall be the Special Drawing Right (SDR) or the Gold Franc, which is equivalent to 1/3.061 SDR. Each administration shall, subject to applicable national law, establish the charges to be collected from its customers.
The tariffs billed to domestic subscribers for international calls originating in Indonesia, also known as collection rates, are established in a decision letter of the MOC, which rates are generally higher than the accounting rates. During the period 1996 to 1998, the MOC made tariff changes effective January 1, 1997, March 15, 1998 and November 15, 1998.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
34.
TARIFF SYSTEM (continued)
a.
International telecommunications services (continued)
Based on Decision Letter No. 09/PER/M.KOMINFO/02/06 dated February 28, 2006 of the MOCIT,thecollectionratesareset by tariff formula known as price cap formula which already considers customer price index starting January 1, 2007.
b.
Cellular services
The basic telephony tariffs for cellular mobile network service are set on the basis of Regulation No. 12/PER/M.KOMINFO/02/2006 dated February 28, 2006 of the MOCIT. Under this regulation, the cellular tariffs consist of the following:
·
Connection fee
·
Monthly charges
·
Usage charges
·
Additional facilities fee
Cellular providers should implement the new tariffs referred to as floor price. For usage charges, the floor price should be the originating fee plus termination fee (total interconnection fee), while for connection fee and monthly charges, the floor price depends on the cost structure of each cellular provider.
In April 2008, the MOCIT issued Ministerial Decree No. 09/PER/M.KOMINFO/04/2008 about guidelines on calculating basic telephony service tariffs through cellular mobile network. Under this new Decree, the cellular providers should implement the new tariffs referred to as price cap. The types of tariffs for telecommunications services through cellular network consist of the following:
·
Tariff for basic telephony services
·
Tariff for roaming
·
Tariff for multimedia services
The retail tariffs should be calculated based on Network Element Cost, Activation Cost of Retail Services and Profit Margin.
The implementation of the new tariffs for a dominant operator has to be approved by the Government. A dominant operator is an operator that has revenue of more than 25% of the total industry revenue for a certain segment.
Starting May 2008, the Company has fully adopted the new cellular tariff system.
c.
Fixed telecommunications services
In February 2006, the MOCIT released Regulation No. 09/PER/M.KOMINFO/02/2006 regarding basic telephony tariffs for fixed network service.
In April 2008, the MOCIT issued Ministerial Decree No. 15/PER/M.KOMINFO/04/2008 about the guidelines on calculating basic telephony service tariffs through fixed network. This Decree also applies to fixed wireless access (FWA) network.
Under this new decree, the tariffs for basic telephony services and SMS (short message service) must be calculated based on the formula stated in the Decree. The fixed network providers should implement the new tariffs referred to as price cap.
Starting May 2008, the Company has fully adopted the new fixed telecommunications tariff system.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
35.
INTERCONNECTION TARIFFS, USO, SPECTRUM FREQUENCY FEES AND REVENUESHARING
Interconnection tariffs among domestic telecommunications operators are regulated by the MOC through its Decree No. KM.108/PR.301/MPPT-94 dated December 28, 1994. The Decree was updated several times with the latest update being Decree No. KM.37 Year 1999 (Decree No. 37) dated June 11, 1999. This Decree, along with Decree No. KM.46/PR.301/MPPT-98 (Decree No. 46) dated February 27, 1998, prescribed interconnection tariff structures between mobile cellular telecommunications network and Public Switched Telephone Network (PSTN), mobile cellular telecommunications network and international telecommunications network, mobile cellular telecommunications network and other domestic mobile cellular telecommunications network, international telecommunications network and PSTN, and between two domestic PSTNs.
Based on the Decree of the MOC, the interconnection tariff arrangements are as follows:
1.
Structure of Interconnection Tariffs
a. Between international and domestic PSTN
Based on Decree No. 37 dated June 11, 1999, the interconnection tariffs are as follows:
|
|
|
|
|
Tariff
|
|
Basis
|
|
|
|
|
Access charge
|
Rp850 per call
|
|
Number of successful outgoing
|
|
|
|
|
|
|
|
and incoming calls
|
|
|
|
|
Usage charge
|
Rp550 per paid minute
|
|
Duration of successful outgoing
|
|
|
|
|
|
|
|
and incoming calls
|
b.
Between domestic PSTN and another domestic PSTN
Interconnection charges for domestic telecommunications traffic (local and SLJJ) between a domestic PSTN and another domestic PSTN are based on agreements made by those domestic PSTN telecommunications carriers.
c.
Between cellular telecommunications network and domestic PSTN
Based on Decree No. 46 dated February 27, 1998 which became effective starting April 1, 1998, the interconnection tariffs are as follows :
(1)
Local Calls
For local calls from a cellular telecommunications network to a PSTN subscriber,
the cellular operator pays the PSTN operator 50% of the prevailing tariffs for local calls.
For local calls from the PSTN to a cellular subscriber, the cellular operator receives
the airtime charged by the PSTN operator to its subscribers.
(2)
Sambungan Langsung Jarak Jauh
(SLJJ)
For SLJJ which originates from the PSTN to a cellular subscriber, the cellular operator receives a portion of the prevailing SLJJ tariffs, which portion ranges from 15% of
the prevailing SLJJ tariffs plus the airtime charges in cases where the entire long-distance portion is not carried by the cellular operator, to 60% of the tariffs plus the airtime charges in cases where the entire long-distance portion is carried by the cellular operator.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
35.
INTERCONNECTION TARIFFS, USO, SPECTRUM FREQUENCY FEES AND REVENUE SHARING (continued)
1.
Structure of Interconnection Tariffs (continued)
c.
Between cellular telecommunications network and domestic PSTN (continued)
(2)
Sambungan LangsungJarak Jauh
(SLJJ)
(continued)
For SLJJ which originates from a cellular telecommunications network to a PSTN subscriber, the cellular operator is entitled to retain a portion of the prevailing SLJJ tariffs, which portion ranges from 15% of the tariffs in cases where the entire long-distance portion is not carried by the cellular operator, to 60% of the tariffs in cases where the entire long-distance portion is carried by the cellular operator.
d.
Between cellular telecommunications network and another cellular telecommunications network
Based on Decree No. 46, the interconnection tariffs are as follows:
(1)
Local Calls
For local calls from a cellular telecommunications network to another, the origin cellular operator pays the airtime to the destination cellular operator. If the call is carried by
a PSTN, the origin cellular operator pays the PSTN operator 50% of the prevailing tariffs for local calls.
(2)
SLJJ
For SLJJ which originates from a cellular telecommunications network, the cellular operator is entitled to retain a portion of the prevailing SLJJ tariffs, which portion ranges from 15% of the tariffs in cases where the entire long-distance portion is not carried by
the cellular operator, to 85% of the tariffs in cases where the entire long-distance portion is carried by the cellular operator and the call is delivered to another cellular operator, and to 100% if the call is delivered to the same cellular operator.
e.
Between international PSTN and cellular telecommunications network
Starting in 1998, the interconnection tariffs for international cellular call traffic to/from overseas from/to domestic cellular subscribers, regardless of whether the traffic is made through domestic PSTN or not, is based on the same tariffs applied to traffic made through domestic PSTN as discussed in a above. However, as agreed mutually with the cellular telecommunications operators, the Company (including Satelindo until it was merged -
Note 1e) still applied the original contractual sharing agreements regarding the interconnection tariffsuntil December 31, 2006 (Note 36).
f.
Between international gateway exchanges
Interconnection charges for international telecommunications traffic between international gateway exchanges are based on agreements between international telecommunications carriers and international telecommunications joint ventures.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
35.
INTERCONNECTION TARIFFS, USO, SPECTRUM FREQUENCY FEES AND REVENUE SHARING (continued)
1.
Structure of Interconnection Tariffs (continued)
Decree No. 37 and Decree No. 46 were subsequently superseded by Decree No. 32 Year 2004 of the MOC which provides cost-based interconnection to replace the current revenue-sharing arrangement. Under the new Decree, the operator of the network on which calls terminate determines the interconnection charge to be received by it based on a formula mandated by the Government, which is intended to have the effect of requiring that operators charge for calls based on the cost of carrying such calls.
The effective date of the new Decree, which was originally set to start on January 1, 2005,
was subsequently postponed until January 1, 2007 based on Regulation No. 08/PER/M.KOMINFO/02/2006 dated February 8, 2006 of the MOCIT (Note 36).
The implementation of interconnection billing between operators starts from the time they sign their interconnection agreements. All interconnection agreements are based on Reference Interconnection Offer (RIO). All operators have to publish their RIO and a dominant operator is required to obtain an approval of its RIO from the Government.
In August 2006, the DGPT issued Decree No. 278/DIRJEN/2006, which approved the RIO of the Company and two other dominant telecommunications operators (Telkom and Telkomsel). This decree was implemented since January 2007 as agreed by all operators and approved by the Government. On April 11, 2008, the DGPT approved the new RIO for dominant operators (Telkom, Telkomsel and the Company). The DGPT requires all domestic operators to amend their interconnection agreements in line with the approved new RIO starting April 1, 2008. On April 1, 2008, the Company implemented the new interconnection tariffs based on the approved RIO.
However, on December 31, 2010, the
Badan Regulasi Telekomunikasi Indonesia
(BRTI or Indonesian Telecommunications Regulatory Bureau) issued letter No. 227/BRTI/XII/2010 regarding the implementation of new interconnection tariffs based on the implementation of cost-based interconnection fees, which would be used by all telecommunications operators effective January 1, 2011. The Company has adopted the new tariffs starting January 1, 2011.
On June 27, 2011, the MOCIT issued Regulation No.16/PER/M.KOMINFO/06/2011 regarding the amendment of the Ministry of Transportation Decree No. 35 Year 2004 on implementation of local fixed wireless network with limited mobility, which encouraged the implementation of cost-based tariffs by all telecommunications operators effective July 1, 2011.
Prior to 2012, the interconnection for Short Message Services ("SMS") applied the "Senders Keep All" scheme. Under this old scheme, the telecommunication operators may keep all of the revenue received from their subscribers from services of sending SMS to other operators without any interconnection cost paid to other operators. Starting June 1, 2012, the BRTI issued letter No. 262/BRTI/XII/2011 replacing the previous "Senders Keep All" scheme with the new cost-based scheme. Under the new scheme, the telecommunication operators are obliged to pay interconnection cost with maximum amount of Rp23 (in full amount) for every SMS sent to other telecommunication operators.
Effective June 1, 2012, the Company has applied this new BRTI regulation.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
35.
INTERCONNECTION TARIFFS, USO, SPECTRUM FREQUENCY FEES AND REVENUE SHARING (continued)
2.
USO and Spectrum Frequency Fees
On January 16, 2009, the Government issued Regulation No. 7 Year 2009 increasing the USO development contribution from 0.75% to 1.25% and decreasing the concession fee from 1% to 0.50% of annual gross revenue (after deducting bad debts and interconnection charges) effective January 1, 2009.
On December 13, 2010, the President of the Republic of Indonesia issued PP No.76/2010 regarding the amendment of PP No.7/2009 on types and tariffs of non-tax state income imposed by the MOCIT. This regulation affects the computation method and payment of the spectrum fee allocated to the Company (800 Mhz, 900 Mhz and 1,800 Mhz frequency bands).
On July 26, 2013, the MOCIT issued Decree No 21 Year 2013 on the Provision of Content Provider Services on Cellular Network and Fixed Local Wireless Network with Limited Mobility. The Decree regulates, among others, the cooperation between content provider carriers and telecommunication operators, roles and responsibilities of thecontent provider carriers and telecommunication operators, the type of contents allowed, service subscription mechanism, content offerings, protection for users, access number, content provider license, concession fee (
Biaya Hak Penyelenggaraan
/ BHP) and USO obligation, data storage, claims, dispute resolutions, supervision and monitoring and administrative sanctions. Under this new Decree, the content provider carriers are obliged to pay the USO and concession fee obligations in accordance with the regulations. The payments of the concession fee and USO obligations will be done by the content provider carriers through the telecommunication operators.
3.
Revenue Sharing
Revenue from access and usage charges from international telecommunications traffic with telecommunications networks owned by more than one domestic telecommunications carrier which is not regulated by Decree No. 08/PER/M.KOMINFO/02.2006, is to be proportionally shared with each carrier, which proportion is to be bilaterally arranged between the carriers.
36.
INTERCONNECTION AGREEMENTS
The Company (including Satelindo and IM3 until they were merged - Note 1e) has interconnection arrangements with domestic and overseas operators. Some significant interconnection agreements are as follows:
1.
Telkom
The following are significant interconnection agreements/transactions with Telkom:
a.
Fixed telecommunications services
On September 23, 2005, the Company and Telkom signed an agreement regarding the interconnection of local, long-distance and international fixed networks. The principal matters covered by the agreement are as follows:
·
Interconnection between the Companys and Telkoms local, long-distance and international fixed networks enables the Companys fixed telecommunications service subscribers to make or receive calls to or from Telkoms subscribers or international gateways.
·
The Companys and Telkoms international services are accessible and continuously open to each others fixed networks.
·
The Company and Telkom are responsible for their respective telecommunications facilities.
·
The compensation arrangement for the services provided is based on interconnection tariffs determined by both parties.
·
Each party handles subscriber billing and collection for the other partys international calls service used by the other partys subscribers. Each party has to pay the other party 1% of the collections made by the other party, plus the billing process expenses which are fixed at Rp82 per record of outgoing call as compensation for billing processing.Starting January 1, 2009, Telkom bills the Company service charge of Rp1,200 per minute of outgoing call.
On December 28, 2006, the Company entered into a memorandum of understanding
with Telkom applying the new interconnection rates under cost-based regime that were
effective starting January 1, 2007. This memorandum of understanding was replaced by an agreement dated December 18, 2007. This agreement was amended several times. The
latest amendment was dated December 20, 2011 to meet the requirement in the BRTI letter
No. 227/BRTI/XII/2010 dated December 31, 2010 regarding the implementation of the new interconnection tariffs in 2011. The Company has adopted the new tariffs starting January 1, 2011.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
36.
INTERCONNECTION AGREEMENTS (continued)
1.
Telkom (continued)
b.
Cellular services
On December 1, 2005, the Company and Telkom signed an agreement regarding the interconnection between the Companys cellular telecommunications network and Telkoms fixed telecommunications network. Under this agreement, the interconnection between the Companys cellular telecommunications network and Telkoms fixed telecommunications network enables the Companys cellular subscribers to make or receive calls to or from Telkoms fixed telecommunications subscribers.
On December 28, 2006, the Company entered into a memorandum of understanding
with Telkom applying the new interconnection rates under cost-based regime that are effective starting January 1, 2007. This memorandum of understanding was replaced by an agreement dated December 18, 2007. This agreement was amended several times. The latest amendment was dated December 20, 2011 to meet the requirement in the BRTI letter No. 227/BRTI/XII/2010 dated December 31, 2010 regarding the implementation of new interconnection tariffs in 2011. The Company has adopted the new tariffs starting January 1, 2011.
On May 30, 2012, the Company and Telkom signed
Berita Acara Kesepakatan
to meet the requirement in the BRTI letter No. 262/BRTI/XII/2011 dated December 12, 2011 (Note 35) regarding the implementation of the new cost-based scheme for SMS interconnection for fixed telecommunications and cellular services which became effective starting June 1, 2012.
2.
XL Axiata, PT Smartfren Telecom Tbk (previously PT Mobile-8 Telecom Tbk) (Smartfren) and Telkomsel
The principal matters covered by the agreements with these operators are as follows:
·
The Companys and Satelindos international gateway exchanges are interconnected with the mobile cellular telecommunications operators networks to make outgoing or receive incoming international calls through the Companys and Satelindos international gateway exchanges.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
36.
INTERCONNECTION AGREEMENTS (continued)
2.
XL Axiata, PT Smartfren Telecom Tbk (previously PT Mobile-8 Telecom Tbk) (Smartfren) and Telkomsel (continued)
·
The Company and Satelindo receive, as compensation for the interconnection, a portion of
the cellular telecommunications operators revenues from the related services that are made through the Companys and Satelindos international gateway exchanges.
·
Satelindo and IM3 also have an agreement with the above operators for the interconnection of Satelindos and IM3s GSM mobile cellular telecommunications network with the above operators network, enabling the above operators customers to make calls/send SMS to or receive calls/SMS from Satelindos and IM3s customers.
·
The agreements are renewable annually.
The Company (including Satelindo and IM3 until they were merged) and the above operators still continue their business under the agreements by applying the original compensation formula, except for interconnection fee.
On December 8, 27 and 28, 2006, the Company entered into a memorandum of understanding with each of Telkomsel, Smartfren and XL Axiata, respectively, applying the new interconnection rates under cost-based scheme effective January 1, 2007 to comply with Regulation No. 08/PER/M.KOMINFO/02/2006 of the MOCIT. The memoranda of understanding with Smartfren, XL Axiata and Telkomsel were subsequently replaced by agreements dated September 14, and December 17 and 19, 2007, respectively. The agreements with Smartfren and XL Axiata were amended on March 31, 2008, while the agreement with Telkomsel was amended on February 18, 2008. Subsequently, the agreements with Smartfren and XL Axiata were further amended on March 15, 2011 and March 3, 2011, respectively, while the agreement with Telkomsel was further amended on July 19, 2011, to meet the requirement in the BRTI letter No. 227/BRTI/XII/2010 dated December 31, 2010 regarding the implementation of new interconnection tariffs in 2011. The Company has adopted the new tariffs starting January 1, 2011.
On May 28, 2012and March 13, 2013, the Company amended the agreement with Telkomsel and Smartfren, respectively, to meet the requirement in the BRTI letter No. 262/BRTI/XII/2011 dated December 12, 2011 (Note 35) regarding the implementation of the new cost-based scheme for SMS interconnection which became effective starting June 1, 2012.
2.
PT Bakrie Telecom Tbk (Bakrie Telecom)
The principal matters covered by the latest amendment of the agreement dated June 10, 2009 are related to interconnection of the Companys mobile cellular network and international gateway exchanges to Bakrie Telecoms network, including SLI 009 network. Subsequently, the agreement with Bakrie Telecom was further amended on February 9, 2011 to meet the requirement in the BRTI letter No. 227/BRTI/XII/2010 dated December 31, 2010 regarding the implementation of new interconnection tariffs in 2011. The Company has adopted the new tariffs starting January 1, 2011.
On May 31, 2012, the Company and Bakrie Telecom signed
Berita Acara Kesepakatan
to meet the requirement in the BRTI letter No. 262/BRTI/XII/2011 dated December 12, 2011 (Note 35) regarding the implementation of the new cost-based scheme for SMS interconnection which became effective starting June 1, 2012.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
36.
INTERCONNECTION AGREEMENTS (continued)
Net interconnection revenues (charges) from (to) major operators for the nine-month periods ended September 30, 2013 and 2012 are as follows:
|
|
|
|
|
2013
|
|
2012
|
|
Telkom
|
48,943
|
|
52,564
|
|
Smartfren
|
4,689
|
|
7,410
|
|
Telkomsel
|
(65,697)
|
|
(80,956)
|
|
XL Axiata
|
(63,128)
|
|
(69,078)
|
|
Bakrie Telecom
|
(2,651)
|
|
(5,816)
|
|
Net charges
|
(77,844)
|
|
(95,876)
|
37.
SEGMENT INFORMATION
The Group manages and evaluates its operations in three major reportable segments: cellular, fixed telecommunications and MIDI. The operating segments are managed separately because each offers different services/products and serves different markets. The Group operates in one geographical area only, so no geographical information on segments is presented.
The cellular segment currently provides the network coverage in all major cities and population centers across Indonesia by using GSM 900 and GSM 1800 technology. Its primary service is the provision of voice and data transfer which is sold through post-paid and prepaid plans.
The fixed telecommunication segment is the provider of international long-distance services, fixed wireless services, Direct Long Distance (DLD) services and local fixed telephony services.
The MIDI segment offers products and services which include internet, high-speed point-to-point international and domestic digital leased line broadband and narrowband services, a high-performance packet-switching service and satellite transponder leasing and broadcasting services.
Refer to Notes 2k and 24 for the description of the types of products and services under each reporting segment.
No operating segments have been aggregated to form the above reportable operating segments.
Segment results and assets include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Expenditures for segment assets represent the total costs incurred during the period to acquire segment assets that are expected to be used for more than one year.
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss which in certain respects, as explained in the table below, is measured differently from operating profit or loss in the consolidated financial statements. The Groups financing (including finance costs and finance income) and income taxes are managed on a group basis and are not allocated to operating segments.
Operating segments are reported based on financial information determined in conformity with Indonesian Financial Accounting Standards (IFAS), which reporting is also consistent with the internal reporting provided to the chief operational decision maker. The chief operational decision maker is responsible for allocating resources and assessing performance of the operating segments, and has been identified as a steering committee that makes strategic decisions.
37.
SEGMENT INFORMATION (continued)
Consolidated information by industry segment follows:
|
|
|
|
|
Major Segments
|
|
|
|
|
|
|
|
|
|
Fixed
|
|
|
|
Segment
|
|
|
|
|
|
Cellular
|
|
Telecommunications
|
|
MIDI
|
|
Total
|
|
Nine-month period ended September 30, 2013
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Revenues from external customers
|
14,479,675
|
|
886,715
|
|
2,432,869
|
|
17,799,259
|
|
Inter-segment revenues
|
-
|
|
-
|
|
492,441
|
|
492,441
|
|
Total revenues
|
14,479,675
|
|
886,715
|
|
2,925,310
|
|
18,291,700
|
|
Inter-segment revenues elimination
|
|
|
|
|
|
|
(492,441)
|
|
Revenues - net
|
|
|
|
|
|
|
17,799,259
|
|
Expenses
|
13,462,932
|
|
998,078
|
|
1,976,920
|
|
16,437,930
|
|
Operating income
|
1,016,743
|
|
(111,363)
|
|
455,949
|
|
1,361,329
|
|
Gain on sale of towers
|
|
|
|
|
|
|
105,788
|
|
Gain on foreign exchange - net
|
|
|
|
|
|
|
39,085
|
|
Others - net
|
|
|
|
|
|
|
14,612
|
|
Operating profit
|
|
|
|
|
|
|
1,520,814
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit - net
|
|
|
|
|
|
|
526,188
|
|
Gain on change in fair value of derivatives - net
|
|
|
|
|
|
|
168,291
|
|
Interest income
|
|
|
|
|
|
|
81,986
|
|
Loss on foreign exchange - net
|
|
|
|
|
|
(2,351,216)
|
|
Financing cost
|
|
|
|
|
|
|
(1,621,433)
|
|
Share of loss of associated companies
|
|
|
|
|
|
(9)
|
|
Loss for the period
|
|
|
|
|
|
|
(1,675,379)
|
|
Depreciation and amortization
|
5,668,704
|
|
294,175
|
|
642,125
|
|
6,605,004
|
|
Other Information
|
|
|
|
|
|
|
|
|
Segment assets
|
51,573,556
|
|
1,156,895
|
|
8,744,762
|
|
61,475,213
|
|
Unallocated assets
|
|
|
|
|
|
|
2,632,210
|
|
Inter-segment assets elimination
|
|
|
|
|
|
|
(9,734,907)
|
|
Assets - net
|
|
|
|
|
|
|
54,372,516
|
|
Segment liabilities
|
30,337,309
|
|
582,112
|
|
3,034,391
|
|
33,953,812
|
|
Unallocated liabilities
|
|
|
|
|
|
|
10,725,191
|
|
Inter-segment liabilities elimination
|
|
|
|
|
|
|
(7,833,656)
|
|
Liabilities - net
|
|
|
|
|
|
|
36,845,347
|
|
Capital expenditures
|
6,449,267
|
|
122,457
|
|
881,369
|
|
7,453,093
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
37.
SEGMENT INFORMATION (continued)
Consolidated information by industry segment follows (continued):
|
|
|
|
|
Major Segments
|
|
|
|
|
|
|
|
|
|
Fixed
|
|
|
|
Segment
|
|
|
|
|
|
Cellular
|
|
Telecommunications
|
|
MIDI
|
|
Total
|
|
Nine-month period ended September 30, 2012
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Revenues from external customers
|
13,455,531
|
|
757,178
|
|
2,062,681
|
|
16,275,390
|
|
Inter-segment revenues
|
-
|
|
-
|
|
457,418
|
|
457,418
|
|
Total revenues
|
13,455,531
|
|
757,178
|
|
2,520,099
|
|
16,732,808
|
|
Inter-segment revenues elimination
|
|
|
|
|
|
|
(457,418)
|
|
Revenues - net
|
|
|
|
|
|
|
16,275,390
|
|
Expenses
|
11,576,812
|
|
972,440
|
|
1,840,792
|
|
14,390,044
|
|
Operating income
|
1,878,719
|
|
(215,262)
|
|
221,889
|
|
1,885,346
|
|
Gain on sale of towers
|
|
|
|
|
|
|
1,150,780
|
|
Gain on foreign exchange - net
|
|
|
|
|
|
|
26,468
|
|
Others - net
|
|
|
|
|
|
|
(325,293)
|
|
Operating profit
|
|
|
|
|
|
|
2,737,301
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
|
|
87,512
|
|
Financing cost
|
|
|
|
|
|
|
(1,533,905)
|
|
Loss on foreign exchange - net
|
|
|
|
|
|
|
(668,363)
|
|
Income tax expense - net
|
|
|
|
|
|
|
(54,020)
|
|
Loss on change in fair value of derivatives - net
|
|
|
|
|
|
|
(24,682)
|
|
Profit for the period
|
|
|
|
|
|
|
543,843
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
4,895,406
|
|
331,540
|
|
558,677
|
|
5,785,623
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure
|
5,235,290
|
|
75,090
|
|
449,547
|
|
5,759,927
|
|
|
|
|
|
|
|
|
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
37.
SEGMENT INFORMATION (continued)
Consolidated information by industry segment follows (continued):
Major Segments
Fixed
Segment
Cellular
Telecommunications
MIDI
Total
As of December 31, 2012
Other Information
Segment assets
51,599,983
1,417,859
8,460,77261,478,614
Unallocated assets
2,219,928
Inter-segment assets elimination
(8,473,481)
Assets - net
55,225,061
Segment liabilities
29,495,438
448,908
2,521,52532,465,871
Unallocated liabilities
10,004,614
Inter-segment liabilities elimination
(6,640,808)
Liabilities - net
35,829,677
As of January 1, 2012 / December 31, 2011
Other Information
Segment assets
48,913,656
2,068,759
8,185,38759,167,802
Unallocated assets
1,994,640
Inter-segment assets elimination
(7,929,430)
Assets - net
53,233,012
Segment liabilities
27,073,313
742,444
3,042,38730,858,144
Unallocated liabilities
9,674,836
Inter-segment liabilities elimination
(6,269,068)
Liabilities - net
34,263,912
38.
Financial Risk Management Objectives And Policies
a.
Risk Management
The main risks arising from the Groups financial instruments are interest rate risk, foreign exchange rate risk, equity price risk, credit risk and liquidity risk. The importance of managing these risks has significantly increased in light of the considerable change and volatility in both Indonesian and international financial markets. The Companys Board of Directors reviews and approves the policies for managing these risks which are summarized below.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Groups exposure to the risk of changes in market interest rates relates primarily to its loans and bonds payable with floating interest rates.
The Companys policies relating to interest rate risk are as follows:
(1)
Manage interest cost through a mix of fixed and variable rate debts. The Company evaluates the fixed to floating rate ratio of its loans and bonds payable in line with movements of relevant interest rates in the financial markets. Based on managements assessment, new financing will be priced either on a fixed or floating rate basis.
(2)
Manage interest rate exposure on its loans and bonds payable by entering into interest rate swap contracts.
As of September 30, 2013, more than 79% of the Groupsdebts are fixed-rated.
Several interest rate swap contracts are entered into to hedge floating rate U.S. dollar debts. These contracts are accounted for as transactions not designated as hedges, wherein the changes in the fair value are credited or charged directly to profit or loss for the period.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, of the Groups net comprehensive loss for the nine-month period ended September 30, 2013 (through the impact on floating rate borrowings which is based on LIBOR for U.S. dollar borrowings and on JIBOR for rupiah borrowings):
|
|
Increase/decrease in basis points:
|
|
|
|
|
U.S. dollar
|
5
|
|
|
|
Rupiah
|
49
|
|
|
Effect on net comprehensive loss for the period:
|
|
|
|
|
U.S. dollar
|
US$26 (equivalent to Rp302)
|
|
|
|
Rupiah
|
Rp5,993
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
38.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
a.
Risk Management (continued)
Interest rate risk (continued)
Management conducted a survey among the Groups banks to determine the outlook of the LIBOR and JIBOR interest rates until the Groups next reporting date of December 31, 2013. The outlook is that the LIBOR and JIBOR interest rates may move 5 and 49basis points, respectively, higher or lower than the interest rates at the end of the nine-month period ended September 30, 2013.
If LIBOR interest rates were 5 basis points higher or lower than the market levels for the nine-month period ended September 30, 2013, with all other variables held constant, the Groups net comprehensive loss for the period would be (Rp1,725,658)or (Rp1,725,054)and the equity would be Rp16,948,132 or Rp16,948,736, respectively.
If JIBOR interest rates were 49 basis points higher or lower than the market levels for the nine-month period ended September 30, 2013, with all other variables held constant, the Groups net comprehensive loss for the period would be (Rp1,731,349)or (Rp1,719,363) and the equity would be Rp16,942,441 or Rp16,954,427, respectively.
Foreign exchange rate risk
Foreign exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Groups exposure to exchange rate fluctuations results primarily from its U.S. dollar-denominated loans and bonds payable, accounts receivable, accrued expenses and procurement payable.
To manage foreign exchange rate risks, the Company entered into several cross currency swap and currency forward contracts and other permitted instruments, if considered necessary. These contracts are accounted for as transactions not designated as hedges, wherein the changes in the fair value are credited or charged directly to the profit or loss for the period.
The Groups procurement payable is primarily denominated in foreign currencies payable to suppliers and contractors for the purchase and construction or installation of property and equipment, while a significant part of the Groups accounts receivable represents Indonesian rupiah-denominated collectibles from domestic operators.
To the extent the Indonesian rupiah depreciates further from the exchange rates in effect at
September 30, 2013, the Groups obligations denominated in foreign currencies will increase in Indonesian rupiah terms. However, the increases in these obligations will be offset in part by increases in the values of foreign currency-denominated time deposits and accounts receivable. As of September 30, 2013, 18.54% of the Groups U.S. dollar-denominated debts were covered by several currency forward contracts.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
38.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
a.
Risk Management (continued)
Foreign exchange rate risk (continued)
The following table shows the Groups consolidated U.S. dollar-denominated assets and liabilities as of September 30, 2013:
|
|
|
|
|
U.S. Dollar
|
|
Rupiah *
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Cash and cash equivalents
|
76,752
|
|
891,315
|
|
|
Accounts receivable - trade
|
121,413
|
|
1,409,969
|
|
|
Accounts receivable - others
|
2,308
|
|
26,804
|
|
|
Derivative assets
|
8,147
|
|
94,614
|
|
|
Other current financial assets - net
|
384
|
|
4,459
|
|
|
Due from related parties
|
45
|
|
526
|
|
|
Other non-current financial assets - net
|
1,564
|
|
18,163
|
|
|
Total assets
|
210,613
|
|
2,445,850
|
|
|
Liabilities:
|
|
|
|
|
|
Accounts payable - trade
|
16,056
|
|
186,458
|
|
|
Procurement payable
|
118,956
|
|
1,381,436
|
|
|
Accrued expenses
|
28,782
|
|
334,248
|
|
|
Deposits from customers
|
2,762
|
|
32,080
|
|
|
Derivative liabilities
|
3,358
|
|
38,992
|
|
|
Other current financial liabilities
|
19,249
|
|
223,540
|
|
|
Due to related parties
|
1,447
|
|
16,804
|
|
|
Loans payable (including current maturities)
|
293,955
|
|
3,413,700
|
|
|
Bonds payable (including current maturities)
|
650,000
|
|
7,548,450
|
|
|
Other non-current financial liabilities
|
199,413
|
|
2,315,777
|
|
|
Total liabilities
|
1,333,978
|
|
15,491,485
|
|
|
Net liabilities position
|
1,123,365
|
|
13,045,635
|
*
The exchange rate used to translate the U.S. dollar amounts into rupiah was Rp11,613 to US$1 (in full amounts) as published by the Indonesian Central Bank as of September 30, 2013.
The following table demonstrates the sensitivity to a reasonably possible change in the U.S. dollar exchange rate, with all other variables held constant, of the Groups profit or loss for the nine-month period ended September 30, 2013:
|
|
Change in U.S. dollar exchange rate
|
1.96%
|
|
|
Effect on loss for the period
|
Rp192,095
|
Management conducted a survey among the Groups banks to determine the outlook of the U.S. dollar exchange rate until the Groups next reporting date of December 31, 2013. The outlook is that the U.S. dollar exchange rate may weaken by 1.96% as compared to the exchange rate at September 30, 2013.
If the U.S. dollar exchange rate weakens by 1.96% as compared to the exchange rate as of September 30, 2013, with all other variables held constant, the Groups loss for the nine-month period ended September 30, 2013 would be (Rp1,533,261) lower than the actual results.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
38.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
a.
Risk Management (continued)
Equity price risk
The Groups long-term investments consist primarily of minority investment in the equity of private Indonesian companies and equity of foreign companies. With respect to the Indonesian companies in which the Group has investments, the financial performance of such companies may be adversely affected by the economic conditions in Indonesia.
Credit risk
Credit risk is the risk that the Group will incur a loss arising from its customers, clients or counterparties that fail to discharge their contractual obligations. There are no significant concentrations of credit risk. The Group manages and controls this credit risk by setting limits on the amount of risk it is willing to accept for individual customers and by monitoring exposures in relation to such limits.
The Group trades only with recognized and creditworthy third parties. It is the Groups policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis to reduce the exposure to bad debts.
The table below shows the maximum exposure to credit risk for the components of the interim consolidated statement of financial position as of September 30, 2013:
|
|
|
|
|
Maximum
|
|
|
|
|
|
Exposure
(1)
|
|
|
Loans and receivables:
|
|
|
|
|
Cash and cash equivalents
|
2,307,427
|
|
|
|
Accounts receivable
|
|
|
|
|
|
Trade - net
|
2,724,521
|
|
|
|
|
Others - net
|
79,243
|
|
|
|
Other current financial assets - net
|
18,580
|
|
|
|
Due from related parties - net
|
7,833
|
|
|
|
Other non-current financial assets
|
117,804
|
|
|
Held-for-trading:
|
|
|
|
|
Currency forward
|
94,614
|
|
|
Available-for-sale investments:
|
|
|
|
|
Other non-current financial assets -
|
2,730
|
|
|
|
|
other long-term investments - net
|
|
|
|
Total
|
5,352,752
|
(1)
There are no collaterals held or other credit enhancements or offsetting arrangements that affect this maximum exposure.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
38.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
a.
Risk Management (continued)
Liquidity risk
Liquidity risk is defined as the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.
The Groups liquidity requirements have historically arisen from the need to finance investments and capital expenditures related to the expansion of its telecommunications business. The Groups telecommunications business requires substantial capital to construct and expand mobile and data network infrastructure and to fund operations, particularly during the network development stage.
Although the Group has substantial existing network infrastructure, the Group expects to incur additional capital expenditures primarily in order to focus cellular network development in areas it anticipates will be high-growth areas, as well as to enhance the quality and coverage of its existing network.
In the management of liquidity risk, the Group monitors and maintains a level of cash deemed adequate to finance the Groups operations and to mitigate the effects of fluctuation in cash flows. The Group also regularly evaluates the projected and actual cash flows, including its loan maturity profiles, and continuously assesses conditions in the financial markets for opportunities to pursue fund-raising initiatives. These activities may include bank loans, debt capital and equity market issues.
The table below summarizes the maturity profile of the Groups financial liabilities based on contractual undiscounted payments.
|
|
|
|
|
Expected maturity as of September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
contractual
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
|
|
cash
|
|
Interest
|
|
Carrying
|
|
|
|
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
thereafter
|
|
flows
|
|
value
|
|
amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank loan
|
1,500,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,500,000
|
|
(231)
|
|
1,499,769
|
|
|
Accounts payable - trade
|
378,491
|
|
-
|
|
-
|
|
-
|
|
-
|
|
378,491
|
|
-
|
|
378,491
|
|
|
Procurement payable
|
3,440,667
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,440,667
|
|
-
|
|
3,440,667
|
|
|
Accrued expenses
|
1,800,677
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,800,677
|
|
-
|
|
1,800,677
|
|
|
Deposits from customers
|
47,821
|
|
-
|
|
-
|
|
-
|
|
-
|
|
47,821
|
|
-
|
|
47,821
|
|
|
Derivative liabilities
|
38,992
|
|
-
|
|
-
|
|
-
|
|
-
|
|
38,992
|
|
-
|
|
38,992
|
|
|
Other current financial liabilities
|
783,916
|
|
-
|
|
-
|
|
-
|
|
-
|
|
783,916
|
|
(411,640)
|
|
372,276
|
|
|
Due to related parties
|
-
|
|
35,170
|
|
-
|
|
-
|
|
-
|
|
35,170
|
|
-
|
|
35,170
|
|
|
Obligations under finance lease
|
-
|
|
728,734
|
|
728,734
|
|
722,737
|
|
2,805,402
|
|
4,985,607
|
|
(1,530,559)
|
|
3,455,048
|
|
|
Other non-current financial
liabilities
|
-
|
|
46,214
|
|
-
|
|
-
|
|
-
|
|
46,214
|
|
(2,737)
|
|
43,477
|
|
|
Loans payable
|
2,303,552
|
|
803,552
|
|
1,453,552
|
|
485,532
|
|
517,512
|
|
5,563,700
|
|
(84,997)
|
|
5,478,703
|
|
|
Bonds payable
|
1,630,000
|
|
1,048,000
|
|
-
|
|
2,142,000
|
|
10,548,450
|
|
15,368,450
|
|
(105,817)
|
|
15,262,633
|
|
|
Total
|
11,924,116
|
|
2,661,670
|
|
2,182,286
|
|
3,350,269
|
|
13,871,364
|
|
33,989,705
|
|
(2,135,981)
|
|
31,853,724
|
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
38.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
a.
Risk Management (continued)
Liquidity risk (continued)
Expected maturity as of December 31,
Total
2017 and
contractual
InterestCarrying
2013
2014
2015
2016
thereafter
cash flows
valueamount
December 31, 2012
Short-term bank loan
315,736
-
-
-
-
315,736
(16,207)299,529
Accounts payable - trade
231,737
-
-
-
-
231,737
-231,737
Procurement payable
2,737,850
-
-
-
-
2,737,850
-2,737,850
Accrued expenses
1,961,285
-
-
-
-
1,961,285
- 1,961,285
Deposits from customers
43,825
-
-
-
-
43,825
-43,825
Derivative liabilities
81,241
-
-
-
-
81,241
- 81,241
Other current financial
liabilities
670,834
-
-
-
-
670,834
(381,670)289,164
Due to related parties
-
42,789
-
-
-
42,789
-42,789
Obligation under financial
lease
-
622,020
622,020
622,020
2,827,500
4,693,560
(1,591,650)3,101,910
Other non-current
financial liabilities
-
71,592
4,588
-
-
76,180
(6,907) 69,273
Loans payable
2,924,722
1,793,139
856,839
654,973
830,089
7,059,762
(686,722) 6,373,040
Bonds payable
2,643,553
3,520,261
1,299,951
1,734,671
13,638,300
22,836,736
(7,521,054
) 15,315,682
Total
11,610,783
6,049,801
2,783,398
3,011,664
17,295,889
40,751,535
(10,204,210
)30,547,325
Expected maturity as of December 31,
Total
2016 and
contractual
InterestCarrying
2012
2013
2014
2015
thereafter
cash flows
valueamount
January 1, 2012 /
December 31, 2011
Short-term bank loan
1,579,092
-
-
-
-
1,579,092
(79,836)1,499,256
Accounts payable - trade
319,058
-
-
-
-
319,058
-319,058
Procurement payable
3,475,862
-
-
-
-
3,475,862
-3,475,862
Accrued expenses
1,895,613
-
-
-
-
1,895,613
- 1,895,613
Deposits from customers
37,265
-
-
-
-
37,265
-37,265
Derivative liabilities
138,189
-
-
-
-
138,189
-138,189
Other current financial
liabilities
196,675
-
-
-
-
196,675(124,847)71,828
Due to related parties
-
15,480
-
-
-
15,480
-15,480
Obligation under financial
lease
-
180,602
180,602
180,602
696,670
1,238,476
(468,395)770,081
Other non-current
financial liabilities
-
84,186
34,631
-
-
118,817
(11,384)107,433
Loans payable
3,732,456
2,774,662
2,245,335
706,241
1,396,047
10,854,741
(1,128,425)9,726,316
Bonds payable
1,167,023
2,384,195
3,260,902
1,040,592
11,263,104
19,115,816
(6,935,474)12,180,342
Total
12,541,233
5,439,125
5,721,470
1,927,435
13,355,821
38,985,084
(8,748,361)30,236,723
38.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
b.
Capital Management
The Group aims to achieve an optimal capital structure in pursuit of its business objectives, which include maintaining healthy capital ratios and strong credit ratings, and maximizing stockholder value.
Some of the Groups debt instruments contain covenants that impose compliance with certain leverage ratios. In addition, the Companys credit ratings from the international credit ratings agencies are based on its ability to remain within certain leverage ratios. The Group has complied with all externally imposed capital requirements.
Management monitors capital using several financial leverage measurements such as debt-to-equity ratio. The Groups objective is to maintain its debt-to-equity ratio at a maximum of 2.50 as of September 30, 2013.
As of September 30, 2013, the Groups debt-to-equity ratio accounts as defined under the loan agreements are as follows:
|
|
|
|
|
Loans and
|
|
Guaranteed
|
|
|
|
|
|
Bonds Payables
|
|
Notes Due 2020
|
|
|
|
|
|
|
|
|
|
|
Short-term bank loan
|
1,500,000
|
|
1,500,000
|
|
|
Loans and bonds payable - including current maturities
|
20,932,150
|
|
20,932,150
|
|
|
Obligation under finance lease
|
-
|
|
3,792,956
|
|
|
Total debts
|
22,432,150
|
|
26,225,106
|
|
|
Total equity
|
17,527,169
|
|
17,527,169
|
|
|
Debts-to-equity-ratio
|
1.28
|
|
1.50
|
c.
Collateral
Except as discussed in Notes 8 and 19 to the interim consolidated financial statements, there are no other significant terms and conditions associated with the use of collateral.
The Company did not hold any collateral from other parties as of September 30, 2013.
66 * Arabic * MERGEFORMAT 66
These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
39.
EVENTS AFTER REPORTING PERIOD
a.
On October 3, 2013, the Company paid VAT for the period January - December 2012 totaling Rp148,161 (including penalties) based on the SKPKBs dated September 4, 2013 received from the DGT (Note 13).
b.
On October 3, 2013, the Company received dividend income amounting to Rp14,390from its other long-term investment in Tower Bersamas shares (Note 12a).
c.
On October 8 and 11, 2013, the Companyentered into 1 and 2 derivative contracts with total notional amount of US$10,000 and US$20,000, respectively, with ING.
d.
On October 10, 2013, the Company entered into 2 derivative contracts with Barclays and DBS Ltd with notional amount of US$10,000 each.
e.
On October 16, 2013, the Company made apartial payment of additional underpayment of the Companys VAT for the period January - August 2010 totaling Rp76,669(Note 13).
f.
On October 17, 2013, the Company entered into 1 derivative contract with JP Morgan with notional amount of US$10,000.
g.
On October 18, 2013, the Company entered into a 3-year syndicated time revolving loan facility of Rp750,000with PT Indonesia Infrastructure Finance and PT Sarana Multi Infrastructure (Persero) and PT Bank Permata Tbk as the Facility Agent.The loan from such facility bears interest at the annual rate of JIBOR + 2.25%.
h.
On October 21, 2013, the Company entered into a derivative contract with DBS Ltd with notional amount of US$10,000.
i.
On October 21, 2013, the Company received the return of capital from IFB amounting to US$275.0 and EUR1,481.9 and from IIFB amounting to EUR673.9 due to their liquidation.The deregistration with the Dutch Chamber of Commerceis still in process as of October 21, 2013.
j.
As of October 24, 2013, the prevailing exchange rate of the rupiah to U.S. dollar is Rp11,268 to US$1 (in full amounts), while as of September 30, 2013, the prevailing exchange rate was Rp11,613 to US$1 (in full amounts). Using the exchange rate as of October 24, 2013, the Group earned exchange gain amounting to approximately Rp387,561 (excluding the effect of revaluing derivative contracts on October 24, 2013) on the foreign currency liabilities, net of foreign currency assets, as of September 30, 2013 (Note 38).
The translation of the foreign currency liabilities, net of foreign currency assets, should not be construed as a representation that these foreign currency liabilities and assets have been, could have been, or could in the future be, converted into rupiah at the prevailing exchange rate of the rupiah to U.S. dollar as of September 30, 2013 or at any other rate of exchange.
The commitments for the capital expenditures denominated in foreign currencies as of
September 30, 2013 as disclosed in Note 33a are approximately Rp1,270,332 if translated at the prevailing exchange rate as of October 24, 2013.
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These consolidated financial statements are originally issued in the Indonesian language.
PT INDOSAT Tbk AND SUBSIDIARIES
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and for the Nine-month Period then Ended (Unaudited)
With Comparative Figures
as of December 31, 2012 and January 1, 2012 / December 31, 2011
and for the Nine-month Period Ended September 30, 2012 (as Restated Unaudited)
(Expressed in millions of rupiah and thousands of U.S. dollar, except share and tariff data)
u
40. RECLASSIFICATION OF ACCOUNTS
Following are the accounts in the interim consolidated statement of comprehensive income for the nine-month period ended September 30, 2012 which were reclassified in accordance with the BAPEPAM-LK Regulation No VIII.G.7:
Previously Reported
|
|
Reclassified
|
|
Amount
|
|
Reason
|
Other income (expenses) - Loss on foreign exchange - net
|
|
Expenses -Loss on foreign exchange - net
|
|
26,468
|
|
Reclassification to conform
with the 2013 presentation
|
Other income (expenses) - Others - net
|
|
Expenses - Others - net
|
|
(243,462)*
|
|
Reclassification to conform
with the 2013 presentation
|
* before the restatement impact (see Note 2u)
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