2015
Annual Report
BUILDING
INDONESIAN DIGITAL
SOCIETY
BUILDING INDONESIAN DIGITAL SOCIETY
We have a dream of realizing a Digital Society, and we are fully aware that the key to
realizing a digital society is the development of infrastructure in order to provide high-
quality connectivity service. Telkom is building infrastructure comprehensively, which
includes three components, namely id-Access, id-Ring and id-Con, also known as Indonesia
Digital Network (“IDN”).
id-Access infrastructure is a fiber to the home-based network and we currently have
approximately 10 million homes-passed fiber. id-Access is an important infrastructure, which
starting in early 2015, Telkom focused on developing a new product, IndiHome Triple Play,
consisting of home phone service, High Speed Internet, and IPTV services. By the end of 2015,
the IndiHome subscribers reached 1 million.
Telkom also developed the id-Ring infrastructure, which is a fiber network (fiber optic cables)
that connects the islands of Indonesia from Aceh to Papua. In the fourth quarter of 2015,
Telkom has completed a fiber network that connects Sulawesi, Maluku, Papua Cable System
(“SMPCS”) which gives a very positive impact on equity of high-quality communication access,
especially in the eastern region of Indonesia. Currently, Telkom has over 80,000 kilometers of
fiber network in id-Ring.
Meanwhile, id-Con is a strategic initiative that focuses on providing a service platform
Telecommunication, Information, Media and Edutainment and Services (“TIMES”) that
converges cloud-based services built on Data Center facilities. By the end of 2015, Telkom’s
Group has Data Center an area of 74,000 m2.
While Telkom’s subsidiary, which is engaged in the cellular business, Telkomsel, also continues
to build infrastructure to expand coverage and improve the quality of services, in particular in
order to provide the best data services and mobile broadband. Until the end of 2015, Telkomsel
has built more than 100 thousand BTS in which more than half are 3G and 4G BTS to support
mobile broadband services.
In addition, Telkom also seeks to pioneer the development of content and applications to
provide the best experience for customers while further encouraging the use of data services
in people’s daily lives. Content and applications cover various aspects such as digital lifestyle,
digital advertising, and digital payment.
It was all done in order to bring the digitalization of Indonesian society in order to develop a
digital society and eliminating the digital divide to build nation superiority.
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PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero)Tbk
PT Telkom Indonesia (Persero) Tbk
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READY TO BECOME
“THE KING OF DIGITAL”
Telkom believes that what we are trying today is the right step to continue to
be a leader in the industry. We mobilize all of our resources to actualized the
predicate “The King of Digital”.
BECOME THE KING Of ThE
AIR THROuGH TELKOMsEL
Telkom invests most of its capital
expenditures to push the performance
of Telkomsel and to ensure the
coverage and quality of Telkomsel
to support the customer excellence
experience, especially in the data
service. We also have the initiative
to create the synergy in optimizing
the network within the Group scale,
as to create efficiency. This effort is
to strengthen Telkomsel continues to
grow above the industry average
BECOME THE KING Of ThE
LAND THROuGH FIBER TO THE
HOME (FTTH)
Telkom develop optical fiber-based access
network to homes, and currently has about
10 million homes-passed. We have a superior
product, namely IndiHome Triple Play which
is a products bundling consisting of home
phone service, high-speed internet and
interactive TV UseeTV which was launched at
the beginning of 2015. By the end of 2015, we
has successfully reached more than 1 million
IndiHome customers.
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PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
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PREFACEFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA 81,895 KM
FIBER OPTIC
BROADBAND HIGHWAY
BECAME THE KING Of ThE
SEA THROuGH FIBER OpTIC
BROADBAND HIGHwAY FROM
ACEH TO pApuA
Telkom to build optical fiber-based backbone
network that connects the various islands
throughout Indonesia. In 2015, the backbone
network has been connected to Sulawesi,
Maluku and Papua, which will improve
connectivity at once equitable digital ICT
in eastern Indonesia. Overall, we have had
81,895 km fiber optic backbone network to
support mobile and fixed line services.
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PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES GREAT TO BREAK 100/300
In 2015, Telkom launched the Great To Break 100/300, which can be interpreted Telkom has a target to achieve
revenues through Rp100 trillion and Rp300 trillion of market capitalization.
By the end of 2015, due appropriate strategy, the hard work of all management and employees and commitment
to implementation of Corporate Culture Philosophy to be The Best, Principle to be The Star and Practices to be
The Winner, Telkom has successfully reached of Rp102.5 trillion and Rp313 trillion market capitalization.
TELKOM AChIEVEMENTS IN 2015
Throughout 2015, we were able to record an excellence performance growth with achievement above the industry
average. This is the result of our investment in building broadband infrastructure as Telkom’s commitment to become
a leading player in the digital business.
Revenues
EBITDA
Net Income
Total Asset
Total Equity
Cellular Subscribers
Numbers of cellular BTS
Rp102,470 billion
Rp51,415 billion
Rp15,489 billion
Rp166,173 billion
Rp75,136 billion
152.6 million
103,289 unit
increased 14.2%
increased 12.6%
increased 7.0%
increased 17.2%
increased 10.9%
increased 8.6%
increased 20.9%
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PT Telkom Indonesia (Persero) Tbk
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PREFACEFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA ANNUAL REPORT OVERVIEW
PT Telkom Indonesia (Persero) Tbk, or “Telkom”, the
This Annual Report contains forward-looking statements,
including expectations and projections about operational
“Company”, and “we”, presents the Annual Report
performance and
future business prospects. These
for the year ending on December 31, 2015, prepared in
statements generally use words such as “believe”, “hope”,
accordance with the Decree of the Financial Services
“anticipate”, “estimate”, “project” or other similar words.
Authority (“OJK”), the successor of Capital Market and
In addition, all statements that are not historical facts in
Financial
Institutions Supervisory Board (Bapepam-
this Annual Report can be categorized as forward-looking
LK) number X.K.6 and X.K.7. Certain sections of this
statements. Although we believe that the expectations in
Annual Report also contain information in the 20-F Form
the forward-looking statement are quite reasonable, we
according to the rules of the Securities and Exchange
cannot guarantee that these expectations will prove correct.
Commission (“SEC”) of the United States. However, no
Forward-looking statements contain risks and uncertainties,
parts of this document are combined to refer to the 20-F
including the effect of changes in the economic, political and
Form. The information and data presented in this Annual
social environment in Indonesia. In the “Risk Management”
Report are based on the consolidated financial data of
section and other sections of this Annual Report, important
the Company and its subsidiaries.
factors are disclosed that could cause actual results that
differ materially from our expectations.
The term “Indonesia” in the 2015 Annual Report refers
to the Republic of Indonesia, while “Government” means
Further information on the Telkom Annual Report can be
the Government of Indonesia and the “United States” or
“US” means the United States of America. The mention
obtained by contacting Investor Relations, Graha Merah
Putih 5th Floor, Jl. Jend. Gatot Subroto Kav. 52 Jakarta
of the currency “Rupiah” or “Rp” refers to the Indonesian
12710, Indonesia. Ph.: + 62-21-5215 109, Fax.: + 62-21-
currency, while “US Dollars” or “US$” refers to the United
5220 500 or e-mail: investor@telkom.co.id. You can also
States currency. Certain figures (including percentages)
download this document online through our website at
have been rounded. Unless otherwise stated, all financial
http://www.telkom.co.id.
information is presented in Rupiah in accordance with the
Financial Accounting Standards (“SAK”) of Indonesia.
CONTINUITY Of ThE ANNUAL REPORT ThEME
We are consistent with strategic steps to build a sustainable competitive growth. This is reflected in our Annual Report summarized in
the continuity of the following themes:
2011
MOVING fORWARD BEYOND
TELECOMMUNICATIONS
Advances
in broadband-based
technology
2012
BRINGING INDONESIA TO ThE DIGITAL
SOCIETY
We pioneered the digital community in Indonesia
2013
CreatinG Global talentS anD
opportunitieS
International expansion has become a necessity
significantly closed the gap between users.
with a focus on providing services in Information,
for us to be able to maintain a high and
We used this opportunity by strengthening
Media, Edutainment and Services, including the
sustainable growth rate. This strategic initiative
broadband-based
infrastructure
to
support
development of Indonesia Digital Network.
has led us to achieve double-digit growth and
innovative
services and products
towards
Information, Media and Edutainment (“IME”).
solidify us as a provider company for TIMES
service, which is dominant in Indonesia and is
considered in the region.
2014
SuStainable Competitive Growth
throuGh DiGital buSineSS
in digital business
Investing
is a necessity
2015
builDinG inDoneSian DiGital SoCiety
In order to realize a digital society, Telkom provides high quality connectivity through infrastructure
development and developing content and applications that are useful in people’s daily lives so as to
for Telkom to improve competitiveness while
provide the best digitization experience for customers.
maintaining sustainable competitive growth in
the future.
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PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES PENDAHULUAN
IKHTISAR KINERJA
KEUANGAN DAN
KINERJA PENTING
LAPORAN MANAJEMEN
INFORMASI UMUM
TELKOM INDONESIA
CONTENTS
PREfACE
1
2
4
4
5
5
Building Indonesian Digital society
Ready to Become “The King of
Digital”
Great to Break 100/300
Telkom Achievements in 2015
Annual Report Overview
Continuity social Responsibility and
pKBL Highlights
fINANCIAL AND PERfORMANCE
hIGhLIGhTS
12
14
15
17
18
19
Financial Highlights
Business and Operational Highlight
stock Highlights
Bond Highlights
Dividend Highlights
Corporate sosial Responsibility and
pKBL Highlights
MANAGEMENT REPORT
22
Report of the Board of
Commissioner
Report of the president Director
28
GENERAL INfORMATION Of
TELKOM INDONESIA
39
40
42
44
49
52
Telkom Indonesia at a Glance
Telkom Indonesia profile
Telkom Indonesia Milestone
Awards and Certifications
significant Events 2015
Corporate Identity of Telkom
Indonesia
Vision and Mission
Corporate strategy
Cultural Values
Articles of Association
product and services
Trademarks, Copyrights, Industry
Designs and patents
Telkom Indonesia Management
• Composition of Board of
Commissioners and Board of
Directors
• Telkom’s Organizational
Structure
• Board of Commissioners Profile
• Board of Director Profile
• Committees Profile Under the
Board of Commissioners
• Executives Profiles
Telkom Business Group
• Telkom Business Group Structure
• Subsidiaries and Associated
Companies
Employee Numbers and
Composition
Relationship with Government
53
54
54
55
55
55
56
56
58
62
66
70
74
76
77
78
82
83
84
84
87
89
89
91
94
stock Overview and Obligation
• Shareholder Composition
• Chronology of Stock Issued
• Chronology of Other Securities
Capital Market supporting
professional
Capital Market Trading Mechanism
and Telkom ADs
Address of Telkom Indonesia
MANAGEMENT DISCUSSION AND
ANALYSIS Of TELKOM INDONESIA
PERfORMANCE
101
101
101
102
Economic and Industry Overview
• The Global Macro Economy
Indonesian Macro Economy
•
• Telecommunications Industry in
Indonesia
• Competition
103
106 Business Overview
106
• Strategic Working Program of
2015
106
107
• Business Portfolio
• Operational Overview by
Segment
108
• Telkom’s Results of Operation by
Segment
• Marketing Strategy
• Product Overview
• Overview of Telecommunication
Rates
• Promotion Strategies
• Distribution Channels
• Service to Customers
• Customer Receivable
Management
Financial Overview
• Financial Performance of Telkom
Indonesia
• Financial Position Overview
•
Income Statement Overview
• Cash Flow Statement Overview
• Other Information Related to
Financial Overview
• Obligation
• Liquidity
• Working Capital
• Solvency
• Receivable Collectability
• Capital Structure
• Capital Expenditures
• Material Commitment For
Capital Expenditures
• Fixed Asset
117
119
122
123
123
124
126
128
128
129
132
144
148
148
150
150
150
151
152
152
153
154
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PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
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PREFACEFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA ANALISA DAN PEMBAHASAN
MANAJEMEN ATAS KINERJA
TELKOM INDONESIA
TATA KELOLA
PERUSAHAAN
TANGGUNG JAWAB SOSIAL
DAN LINGKUNGAN
LAMPIRAN
155
155
159
159
159
•
Insurance
• Taxation
• Materiality Limitations
• Material Contract
• Material Information of
Investment, Expansion,
Divestment, Acquisition And
Debt/Capital Restructure
160
• Material Information of
Conflict of Interest and/or
affiliated Transaction
• Material Information and
Facts After Accountant
Reporting Date
• Change in Accounting Policy
• Significant Differences
Between IFAS and IFRS
Operational Overview
• Network Infrastructure
Development
• Research and Development
• Licensing
160
160
161
161
161
165
167
170 •
Impact of the Regulation
Changes towards the Company
176
176
Functional Overview
• Human Capital
190 •
Information Technology
CORPORATE GOVERNANCE
195
The purpose of Good Corporate
Governance Implementation
Concept and Foundation
Framework and Roadmap of
the strengthening of GCG
Implementation practice
Road Map and strengthening of
Corporate Governance
201 Rating of Assessment of Corporate
Governance
201 Corporate Governance Awards
195
196
198
Good Corporate Governance
202 General Meeting of shareholders
202 • Telkom’s Shareholders
202 • The Rights & Responsibilities of
the Shareholders in the General
Meeting Of Shareholders
203 • General Rules and Procedures for
Holding AGMS
204 • GMS Implementation
209 working Relationships
Management Between The Board
of Commissioners and Board of
Directors
209 • Distribution of Authority and
Arrangements Regarding
the Approval of the Board of
Commissioners
209 • Joint Meeting & The attendance
of Joint Meetings
209 • Mechanism Regarding the
Relations Between the Board
of Commissioners, Board of
Directors and Majority and/or
Controlling Shareholders
210 Board of Commissioners
210 • General Explanation
210 • The Board of Commissioners
Charter
210 • The Criteria, Condition and
Selection of the Board of
Commissioners
211
212
• The Diversity of the Composition
of the Board of Commissioners
Independence of the Board of
Commissioners
•
213
• Multiple Positions of the Baord of
Commissioners
213
• Task and Authority of the Board
of Commissioners
213
• Meeting and the Attendance
217
217
of the Board of Commissioners
Meeting
• Report on the Implementation
of the Supervisory Task of the
Board of Commissioners in 2015
• The Enchancement Program of
the Competence of the Board of
Commissioners
218
• The Assessment of the
Performance of the Board of
Commissioners
218
• Remuneration of the Board of
Commisssioners
• Procedure for Determination and
Amount of Remuneraion of the
Board of Commissioners
219
• Share Ownership by Members of
219
219
219
Board of Commissioners
• The Board of Commissioners
Secretariat
Board of Directors
• Definition / General Explanation
of Board of Directors
219
• Board of Directors’s Charter
202 The structure and Mechanism of
218
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PT Telkom Indonesia (Persero) Tbk
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 220 • Criteria of Board Directors
243
Members
221
• Composition, Diversity and
Term of Office of the Board of
Directors
222
225
• Tasks, Responsibilities and
Authorities of Directors
• Delegation of Authority and
225
227
Company’s Management Policies
by Board of Directors
• Meetings, Attendance and
Results/Resolutions of the
Meeting of the Board of Directors
• Competence Enhancement
Program of the Board of
Directors
230 • Evaluation/Assessment of the
Performance of the Board of
Directors
230 • Policies, Procedures and
Remuneration of Board of
Directors
232
• Share Ownership by Board of
Directors
• Report of the Implementation
Work of the Nomination and
Remuneration Committee in 2015
245 The planning and Risk Evaluation
and Monitoring Committee
• KEMPR Personnel
245
245
• Brief Profile of KEMPR Members
other than the Board of
Commissioners Members
• Description of tasks of Each
245
Member of KEMPR
246 • Duties and Responsibilities of
KEMPR
246 • Meetings and Attendance of the
KEMPR Meetings
247
• Report of KEMPR Duties
Implementation in 2015
248 • Corporate Secretary/Investor
Relations (“IR”)
248 • Function Corporate Secretary
248 • Duties and Responsibilities of
Corporate Secretary
248 • Corporate Secretary Officer
232 Committees under the Board of
248 • Profile of Corporate Secretary
Commissioners
232 Audit Committee
232
233
233
•
Charter of Audit Committee
• Membership Requirements
• Term of Office of the Members of
234 •
Audit Committee
Independence of the Members of
Audit Committee
234 • Exemptions from the Listing
Requirements in the United
States for the Audit Committe
• Qualification of Members of the
235
Committee
235
• Pre-Approval Procedures and
Policies of Audit Committees
236 • Tasks and Responsibilities of the
Audit Committee
236 • Work Meetings / Meetings
Attendance
237
• Task Implementation Reports of
the Audit Committee in 2015
239 Nomination and Renumeration
Committee
239 • Nomination and Renumeration
Committee Personnel
239 • Description of Each KNR
Members’ Duties
240 • Duties and Responsibilities of the
Nomination and Remuneration
Committee
240 • Meetings and Attendance of the
Nomination and Remuneration
Committee Meetings
Officer
248 • Corporate Secretary
Competence Enhancement
249 Internal Control system
249 • Financial and Operational
Control
249 • Compliance
249 • Evaluation on the Effectiveness
of Intenal Control
250 Internal Audit unit
250 • Structure and Position of the
Internal Audit Unit
Internal Audit Charter
251
•
251
• Vision, Mission, Tasks and
252
252
Responsibilities of Internal Audit
Independence Internal Audit Unit
•
• The Appointment Procedure and
Name of the Chairman of the
Internal Audit
252
• Brief Profile of the Head of
Internal Audit Unit
252
• Number of Personnel of Internal
Audit Unit
252
• Qualification/Professional
Certification
254 External Audit
254 • Fees and Services of the External
Audit
254 • Audit by others External Audit
Institutions
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PREFACEFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA 255 Risk Management
•
255
256 •
Implementation of Risk
Management
Implementation of Risk
Management Policy and
Framework
259 • Risk Factors
276 Legal Issues
278 Access and Transparency
Information
301
301
• Strategy of Telkom CSR
• Legal and Policy of CSR
302 • Scope of Telkom CSR
302 • Organization Governance
302 Telkom CsR Budget Allocation
303 Awards and Achievement of CsR
performance Based on Iso 26000
303 CsR Activities and programs
303 Activities and programs of Telkom
285 Relationship with stakeholders
CsR
303 • Telkom Responsibility to
Environment
303 • Telkom Responsibility for
Employment, Occupational
Health and Safety
311
• Telkom Responsibility for Social
Development and Community
314
• Telkom Responsibility to
Customers
316
316
partnership and Community
Development program (pKBL)
• Telkom Community Development
Center
319
• Realization of the Fund
Distribution of Partnership
and Community Development
Program
320 • Distribution Realization of
the Community Development
Program
321
• Partnership and Community
323
Development Program
Performance & CSR Index
• Activities and Community
Development Partnership
Program
APPENDICES
332
• Definitions
338
353
• Cross Reference To Bapepam-Lk
Regulation No.x.k.6 and Criteria
Of Ara
• Statements of the Member of
Board of Commissioners and
Directors
285 Business Ethics and Corporate
Culture
288 Violations Reporting system
(whistleblowing system)
289 • Submission and Violations
Reporting
289 • Protection for Whistleblowers
289 • Complaint Management Officer
289 • Number of Complaints Violation
and Respond
289 • Complaints Handling
290 • Chart of Handling Complaints of
Telkom and its Subsidiaries
290 Consistency on GCG
Implementation
• Performance Management
291
System
291
• Application of Integrity Pact and
Strengthening Anti Gratification
Efforts
291
• Process Management with Iso
Standards
291
• Corporate Governance Planning
Application
292
• Application of it Governance
294 •
Implementation of E–
Procurement
294 • Development of Human
Resources Competence
• Ownership Management
295
Information and Intangible Asset
295
• Following Up On Complaints
From The Customer and
Community
295 significant Differences of GCG
practices in Indonesia and NYsE
standards
CORPORATE SOCIAL
RESPONSIBILITY AND PKBL
300 Telkom’s social Responsibility
Commitments
• Vision and Mission
• Purpose of Telkom CSR
301
301
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 10
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
11
PREFACEFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA 02
FINANCIAL AND
PERFORMANCE
HIGHLIGHTS
12
14
15
17
18
Financial Highlight
Business and Operational Highlight
Stock Highlight
Bond Highlight
Dividend Highlight
19 Corporate Social Responsibility &
PKBL Highlights
10
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
fINANCIAL AND PERfORMANCE hIGhLIGhTS
Consolidated Statements of Comprehensive Income
(in billions of Rupiah, except for net income per share and per ADS
Years ended December 31,
Total Revenues
Total Expenses
EBITDA
Operating profit
Profit for the year
Profit for the year attributable to:
•
•
Owners of the parent company
Non-controlling interest
2015
2014
(Restated)
2013
2012
2011
102,470
89,696
82,967
77,143
71,253
71,552
61,564
57,700
54,004
49,960
51,415
45,673
41,776
39,757
36,558
32,418
29,206
27,846
25,698
21,958
23,317
21,274
20,290
18,362
15,470
15,489
7,828
14,471
6,803
14,205
12,850
10,965
6,085
5,512
4,505
Total comprehensive income for the year
23,948
22,041
20,402
18,388
15,481
Total comprehensive income attributable to:
•
•
Owners of the parent company
Non-controlling interest
16,130
15,296
7,818
6,745
14,317
6,085
12,876
10,976
5,512
4,505
Net income per share
157.8
148.1
147.4
133.8
111.9
Net income per ADS (1 ADS : 200 common stock)
31,553.4
29,625.2
29,483.6
26,767.6
22,386.8
Consolidated Statement of financial Position
(in billion of Rupiah)
Date December 31,
Assets
Liabilities
2015
2014
(Restated)
2013
(Restated)
2012
2011
166,173
141,822
128,555
111,369
103,054
72,745
55,830
51,834
44,391
42,073
Equity attributable to owner of the parent company
75,136
67,721
59,823
Net working capital (Current Asset - Current Liabilities)
Investment in associate entities
Capital Expenditure
(in billions of rupiah)
12,499
1,807
1,976
1,767
4,638
304
Years ended December 31,
51,541
3,866
275
47,510
(931)
235
2015
2014
2013
2012
2011
Telkom
Telkomsel
Others Subsidiaries
Total
9,641
11,321
8,099
13,002
5,313
4,040
4,202
15,662
10,656
5,439
3,560
3,923
2,576
8,472
1,929
26,401
24,661
24,898
17,272
14,603
Consolidated financial and Operation Ratios
Years ended December 31,
Return on Asset (ROA (%)(1)
Return on Equity (%)(2)
Operating Profit Margin (%)(3)
Current Ratio (%)(4)
Total Liabilities to Equity (%)(5)
Total Liabilities to Total Assets (%)(6)
2015
2014
(Restated)
2013
(Restated)
2012
2011
9.3
20.6
31.6
135.3
96.8
43.8
10.2
21.4
32.6
106.1
82.4
39.4
11.0
23.7
33.6
116.0
86.6
40.3
11.5
24.9
33.3
116.0
86.1
39.9
10.6
23.1
30.8
95.8
88.6
40.8
(1) ROA is calculated as profit for the year attributable to owner of the parent company divided by total assets at year end December 31.
(2) ROE is calculated as profit for the year attributable to owners of the parent company divided by total equity attributable to owner of the parent com-
pany at year end December 31.
(3) Operating Profit Margin is calculated as operating profit divided by revenues.
(4) Current Ratio is calculated as current liabilities divided by current liabilities at year end December 31.
(5) Liabilities to Equity Ratio is calculated as total liabilities divided by total equity attributable to owners of the parent company at year end December 31.
(6) Liabilities to total assets ratio is calculated as total liabilities divided by total assets at year end December 31.
12
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
13
PREFACEFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
Revenues
(in billion rupiah)
14.2%
EBITDA
(dalam miliaran rupiah)
12.6%
102,470
89,696
82,967
77,143
71,253
51,415
45,673
41,776
39,757
36,558
2015
2014
2013
2012
2011
2015
2014
2013
2012
2011
Net Income
(in billion rupiah)
7.0%
Net Income per share
(in rupiah)
6.5%
15,489
14,471
14,205
12,850
10,965
157.8
148.1
147.4
133.8
111.9
2015
2014
2013
2012
2011
2015
2014
2013
2012
2011
Assets
(in billion rupiah)
17.2%
Total Equity
(in billion rupiah)
10.9%
166,173
141,822
128,555
111,369
103,054
75,136
67,721
59,823
51,541
47,510
2015
2014
2013
2012
2011
2015
2014
2013
2012
2011
12
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
13
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES BUSINESS AND OPERATIONAL hIGhLIGhT
unit
Year ended on December 31,
Broadband subsribers
Fixed broadband
Mobile broadband
Total Broadband Subsribers
Cellular subsribers
Postpaid (kartuHalo)
(000) subscribers
(000) subscribers
(000) subscribers
(000) subscribers
Prepaid (simPATI, Kartu As, Loop)
(000) subscribers
Total Cellular Subsribers
Fixed Line subsribers
Fixed wireline (POTS)
Fixed wireless
Total Fixed Line Subsribers
Other subscribers
Datacomm
Satelit-transponder
Network
BTS
Customer services
PlasaTelkom
Grapari
Grapari Mobile
Employees
(000) subscribers
(000) subscribers
(000) subscribers
(000) subscribers
Mbps
MHz
unit
location
location
unit
people
2015
3,983
43,786
47,769
3,509
149,131
152,641
10,277
N/A(1)
10,277
2014
3,400
31,216
34,616
2,851
137,734
140,585
9,698
4,404
14,102
2013
3,013
17,271
20,284
2,489
129,023
131,513
9,351
6,766
16,117
1,907,012
930,327
4,648
3,560
381,440
3,007
103,289 (2)
85,420 (2)
75,579
572
414
392
572
409
268
572
408
268
24,785
25,284
25,011
(1) Until the end of 2015, wireless subscribers get migration program to cellular subscribers
(2) Since 2014 base stations that we disclose was a cellular BTS
14
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
15
PREFACEFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
STOCK hIGhLIGhT
The following figures are the report of the highest, lowest, and closing of stock price, trading volume, outstanding shares
and market capitalization of common stock listed on the Indonesia Stock Exchange (“IDX”) for the periods indicated:
price per share of Common stock
Volume
Outstanding shares
Market
Capitalization
Calendar Year
High
Low
Closing
2011
2012
2013
2014
2015
2016
1,610
1,990
2,580
(in Rupiah)
1,320
1,330
1,760
1,410
22,207,895,000
96,931,696,600
1,810
23,002,802,500
95,745,344,100
2,150
27,839,305,000
97,100,853,600
3,010
2,060
2,865
24,035,761,600
98,175,853,600
(shares)
(Rp billion)
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
September
October
November
December
January
February
2,420
2,700
3,010
2,930
3,170
3,020
2,955
2,970
3,170
2,875
2,830
2,980
3,170
3,385
3,385
3,370
2,060
2,150
2,465
2,590
2,485
2,770
2,595
2,485
2,600
2,485
2,600
2,660
2,900
3,125
3,125
3,140
2,215
2,465
2,915
2,865
6,647,275,800
97,100,853,600
6,736,807,600
98,175,853,600
5,313,076,900
98,175,853,600
5,338,601,300
98,175,853,600
3,105
18,742,850,400
98,175,853,600
5,209,728,100
98,175,853,600
2,890
2,930
2,645
3,105
2,645
2,680
2,930
3,105
3,250
3,340
3,250
4,816,156,800
98,175,853,600
295,344
4,061,559,500
98,175,853,600
4,655,406,000
98,175,853,600
1,156,524,800
98,175,853,600
1,525,378,700
98,175,853,600
1,506,268,100
98,175,853,600
1,623,759,200
98,198,216,600
3,681,651,400
98,198,216,600
1,748,979,300
98,198,216,600
1,932,672,100
98,198,216,600
266,616
312,984
266,616
270,144
295,344
312,984
327,600
336,672
327,600
142,128
182,448
216,720
288,792
223,272
248,472
293,832
288,792
312,984
291,312
(1) We conducted a two for one split of our common stock from a nominal value of Rp500 per share to Rp250 per
share as resolved by the AGMS on July 30, 2004, effective October 1, 2004.
(2) We conducted a five for one split of our common stock from a nominal value of Rp250 per share to Rp50 per share
as resolved by the AGMS on April 19, 2013, effective September 2, 2013.
(3) The price per share of the common stock reflects this two splits above for all periods shown.
(4) Market capitalization is the product of the share price and issued and fully paid shares which is 100,799,996,400
shares.
On the last day of trading on the IDX in 2015, which was December 30, 2015, the closing price for our common stock
was Rp3,105 per share.
14
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
15
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
In the table below, we present the ADS price (high, low, and closing) and ADS trading volume on the New York Stock
Exchange (“NYSE”) and the London Stock Exchange (“LSE”) for the indicated periods. In the LSE, Telkom ADS is traded
over the counter (OTC), meaning that the transaction occurs “off exchange”. After a transaction has taken place, then
it is reported to the LSE.
Calendar Year
2011
2012
2013
2014
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
price per ADs (NYsE)
Volume
price per ADs (LsE)
Volume
high
Low
Closing
high
Low
Closing
(in US Dollars)
(in ADS)
(in US Dollars)
(in ADS)
36.96
30.29
30.74
69,279,100
35.89
41.14
29.26
36.95
88,190,589
40.12
50.61
33.75
35.85
67,061,105
50.59
48.75
33.91
45.23
43.75
21.02
30.24
33.44
38.42
30.50
1,406,292
36.50
746,278
35.33
6,579,103
-
12,008
52,250,948
40.59
33.91
39.37
16,346,799
39.55
38.42
39.55
986
44.45
39.00
41.66
16,409,533
43.75
39.95
43.00
11,022
48.75
41.69
48.10
9,670,921
48.43
42.29
45.23
9,823,695
2015
47.07
34.09
44.40
43,719,116
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
47.07
41.11
43.54
9,175,837
44.95
40.51
43.39
10,897,235
43.97
34.09
35.65
10,220,243
45.51
34.93
44.40
13,425,801
September
40.32
34.09
35.65
3,973,606
October
41.31
34.93
39.76
4,939,512
November
42.99
39.22
42.51
3,893,219
December
45.51
40.77
44.40
4,593,070
2016
49.81
42.44
49.05
8,503,077
January
49.08
42.44
49.00
4,551,440
Februari
49.81
47.99
49.05
3,951,637
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
On the last day of trading on the NYSE in 2015, which was December 31, the closing price for one Telkom ADS was
US$ 44.40.
Effective June 5, 2014, due to the low level of our ADSs traded, we delisted our ADSs listing from the LSE. The closing
price of Telkom ADS last transaction on the LSE for our ADS on June 4, 2014 was US$ 43.00.
16
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
17
PREFACEFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
BONDS hIGhLIGhT
The following table was bond summary:
Bond
Outstanding
Issuance Date Maturity Date
Term
(Year)
Interest
Rate
Underwriter
Trustee
Rating
(Rp million)
Telkom's Bond
II 2010 Serie B
1,995,000
Juni 25, 2010
Juli 6, 2020
10
10.20%
Telkom's Bond
I 2015 Serie A
2,200,000
Juni 23, 2015
Juni 23, 2022
7
9.93%
Telkom's
Bond I 2015
Serie B
Telkom's
Bond I 2015
Serie C
Telkom's
Bond I 2015
Serie D
2,100,000
Juni 23, 2015
Juni 23, 2025
10
10.25%
1,200,000
Juni 23, 2015
Juni 23, 2030
15
10.60%
1,500,000
Juni 23, 2015
Juni 23, 2045
30
11.00%
PT CIMB
Niaga Tbk
idAAA
idAAA
PT Bank
Permata
Tbk
idAAA
PT Bank
Permata
Tbk
idAAA
PT Bank
Permata
Tbk
idAAA
PT Bank
Permata
Tbk
PT Bahana
Securities;
PT Danareksa
Sekuritas;
PT Mandiri
Sekuritas;
PT Bahana
Securities;
PT Danareksa
Sekuritas;
PT Mandiri
Sekuritas;
PT Trimegah
Securities Tbk
PT Bahana
Securities;
PT Danareksa
Sekuritas;
PT Mandiri
Sekuritas;
PT Trimegah
Securities Tbk
PT Bahana
Securities;
PT Danareksa
Sekuritas;
PT Mandiri
Sekuritas;
PT Trimegah
Securities Tbk
PT Bahana
Securities;
PT Danareksa
Sekuritas;
PT Mandiri
Sekuritas;
PT Trimegah
Securities Tbk
16
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
17
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES DIVIDEND hIGhLIGhT
The Annual General Meeting of Shareholders (“AGMS”) has the authority to determine the amount of dividends we pay.
Our dividend payout ratio for 2015 will be decided at the AGMS scheduled for 2016.
Cash Dividend Table
Dividend Year
Date of AGMS
Payout Ratio (%)1 Amount of Dividends
2010
2011
2012
2013
2014
May 19, 2011
May 11, 2012
April 19, 2013
April 4, 2014
April 17, 2015
55
65
65
70
60
(Rp million)
6,345,350 2
7,127,333 3
8,352,597 4
9,943,294 5
8,782,812 6
Dividend per Share
After Stock Split (Rp)
64.52
74.21
87.24
102.40
89.46
(1) Represents the percentage of profit attributable to owners of the parent paid to shareholders in dividends.
(2) Including interim cash dividend paid in December 2010 and January 2011 amounting to Rp276,072 million and Rp250,085
million respectively.
(3) Consists of cash dividend amounting to Rp6,030,820 million and special cash dividend amounting Rp1,096,513 million.
(4) Consists of cash dividend amounting to Rp7,067,582 million and special cash dividend amounting Rp1,285,015 million.
(5) Consists of cash dividend amounting to Rp7,812,588 million and special cash dividend amounting Rp2,130,706 million.
(6) Consists of cash dividend amounting to Rp7,319,010 million and special cash dividend amounting Rp1,463,802 million.
TELKOMSEL DIVIDEND
Pursuant to the AGMS of Telkomsel on April 2, 2015, Telkomsel approved, the payment of a cash dividends in the amount of
Rp17,463 billion, which represented 90% of Telkomsel’s net profits in 2014, and by a shareholders’ resolution dated September
23, 2015, Telkomsel approved the payment of an additional cash dividend in the amount of Rp4,851 billion which represented
25% of Telkomsel’s net profits in 2014. Based on share ownership, Telkom entitled to receive 65% of any dividends approved
by Telkomsel to be shared.
18
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
19
PREFACEFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA CORPORATE SOCIAL RESPONSIBILITY & PKBL hIGhLIGhTS
Responsibility for Social & Community
Development
Actual Distribution
Number of Fostered Partners
Unit
Rp billion
partner
Years ended December 31
340.96
11,981
2014
396.42
12,163
2013
118.21
3,975
Responsibility toward the Environment
Unit
Years ended December 31
2015
80.84
2014
82.81
2013
55.76
Rp billion
Distribution of fund for community
development
Employee Volunteer Program*
Numbers of Participant
Numbers of Activity
people
activity
1,722
4
-
-
-
-
Responsibility toward Labor, Work health
and Safety
Numbers of program
Program Value
Unit
program
Rp billion
Years ended December 31
3
3.1
2014
2
8.0
2013
1
2.0
Responsibility toward Customer
Unit
Corporate Customer - wholesale
Customer Satisfaction Index / CSI
Customer Loyality Index / CLI
Corporate Customer - Enterprise
Customer Satisfaction Index / CSI
Customer Loyality Index / CLI
personal Customer
Customer Satisfaction Index / CSI
Customer Loyality Index / CLI
*) Employee Volunteer Program started in 2015.
%
%
%
%
%
%
Year ended December 31
2014
2013
84.05
85.49
90.66
94.90
83.06
78.64
83.99
82.66
94.26
85.74
83.77
73.51
84.22
81.55
94.55
90.86
80.16
67.64
18
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
19
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
20
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
21
PREFACEMANAGEMENT REPORTFINANCIAL AND PERFORMANCE HIGHLIGHTSGENERAL INFORMATION OF TELKOM INDONESIA 03
MANAGEMENT
REPORT
22
28
Report of the Board of Commissioner
Report of the President Director
20
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
21
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES REPORT Of ThE BOARD Of COMMISSIONER
hendri Saparini
President Commissioner
22
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
23
PREFACEMANAGEMENT REPORTFINANCIAL AND PERFORMANCE HIGHLIGHTSGENERAL INFORMATION OF TELKOM INDONESIA “Telkom should prepare ourselves to various aspects, including
human resources, to deal with the opportunities and challenges
at the international level”
In 2015, Indonesia’s economy grew quite well although
is still relatively low, thus giving an opportunity for the
slightly below the original target, which is 4.8% growth.
Company to grow its business. Consumer behavior is
Various factors, both external and internal, causes slower
also increasingly requiring the mobile broadband service
economic growth. External factors that influenced among
others are the weakening of global economy in general,
where smartphone users are growing rapidly, which will
further encourage the consumption of data. While at the
including China which is the largest trading partner
same time, households in Indonesia are also increasingly
of Indonesia, as well as falling commodity prices that
feeling the importance of high-quality fixed broadband
gave economic impact for Indonesia, especially outside
service, which is still focused on the big cities only. In line
of Java. While the most important internal factor is the
with the increasingly widespread broadband services,
weakening purchasing power of people, one of them
supported by a network of good telecommunications
as a result of the removal of fuel subsidy by the end of
infrastructure, it will encourage the creation of growth
2014. The purchasing power of the people is the key to
opportunities in the digital economy such broader scale
economic growth of more than half of Indonesia’s gross
digital lifestyle, digital payment and digital advertisement.
domestic product contributed by household consumption
Telkom has advantages compared with other telecom
or expenditure.
companies in serving the digital needs of the community
as it has started early so that infrastructure, product,
In a slowing domestic economy, the telecommunications
service availability and readiness of human-resources
sector actually recorded a fairly good growth, namely by
have been through the process which will only be initiated
9% YoY. This shows that the telecommunications sector is
recently by the other operators. Other operators are also
quite resilient to the crisis therefore has become a basic
now starting to enter the information technology industry,
need for people. The increasing use of telecommunications
pay television and other digital industries, something
services does not only occur in urban areas, but also
that confirm the fact of the growth, on the other hand it
going into the rural parts.
makes the digital industry will be even more dynamic in
the future. While on the other hand, although the legacy
In the
industry, especially
in the mobile segment,
services (voice and SMS) has reached saturation point,
throughout 2015 was marked by the level of competition
the Company is expected to still be able to pursue growth
is quite healthy and rational, one of them as a result of
with a smart strategy.
industry consolidation in the last period. While in the
fixed-line segment, although Telkom is dominant, there
In addition to focusing on the growth of domestic
are some newcomers who offer fixed broadband services
market that is large in size, international business
which also includes internet and television services.
opportunities can still be explored further, both in the
Views on Business Prospects
telecommunications
The
industry,
field of telecommunication and other related fields. Since
the enactment of AEC in 2015 provides an opportunity
information
for Telkom to further expand and strengthen its footprint
technology and its derivatives in Indonesia still offers
considerable growth opportunities. Along with economic
growth, more room to grow, especially coming from
broadband services, both mobile and fixed, where the
in the region. Therefore, even though it started its
international operations, Telkom should continue to
improve in various aspects, including human resources,
to face the opportunities and challenges at the
level of smartphone penetration and fixed broadband
international level.
22
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
23
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Views on Company Performance for 2015
The Company recorded a remarkable performance
in 2015 with revenue growth of 14.2%, well above the
industry average. Revenue target of Rp100 trillion
launched in early 2015 may be exceeded with the
achievements income of Rp102,584 billion. The
achievement is supported by the superior performance
of its subsidiary engaged in mobile services, PT
Telekomunikasi Seluler (Telkomsel), which again
recorded a triple double digit growth for revenue,
EBITDA and Net Income. Meanwhile, for the fixed line
BOC sees that the achievement of this performance
shows that the Company has been able to establish
the right strategy and have the ability to execute
the strategy very well. The Company is continuing
three primary program, which strengthens Telkomsel
continues to grow above the industry average, to build
Indonesia Digital Network in order to realize the Digital
Society, as well as the expansion of Telkom’s presence
in regional and international markets. We see the Board
of Directors have a high awareness of the changes in
the telecommunications industry is so dynamic, both
service, Telkom recorded a milestone by achieving more
in terms of technology and competition. The Board of
than 1 million customers of IndiHome, Triple Play service,
Directors is able to adjust the company’s strategy well
which was launched in early 2015 consisting of home
phone service, high-speed internet and IPTV which is
entirely based on fiber optics.
and set priorities accordingly. We very much appreciate
how the Board of Directors position themselves to face
the changes that occur and bring Telkom to successfully
take advantage of every opportunity optimally.
24
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
25
PREFACEMANAGEMENT REPORTFINANCIAL AND PERFORMANCE HIGHLIGHTSGENERAL INFORMATION OF TELKOM INDONESIA Good Corporate Governance and Oversight
by the Board of Commissioners
The present company achievements can not be separated
from the commitment to constantly improve itself,
especially in the field of implementation of corporate
governance or Good Corporate Governance (GCG). The
Company continued to improve the implementation and
enforcement of the values of good corporate governance
( “GCG”) which follows the highest standards (best
practices), in order to provide a strong foundation
to continue to grow sustainably in the future. Good
governance at the operational level is very important to
be able to maintain the achievement of the target in the
medium term and long term.
BOC is confident that a strong commitment on the
implementation of GCG could encourage the creation
of healthy companies and adherence to ethics, rules and
regulations in place.
In order for the three committees to perform tasks
and functions better in the future, the Board of
Commissioners gives encouragement to the members of
the Committee to continue to updating their knowledge
about the industry, business and technology in the field
of telecommunications.
In 2015 there has been a change in the composition
of the Board of Commissioners. General Meeting of
Shareholders ( “GMS”) approved the honorable dismissal
of Mr Johnny Swandi Sjam and Virano G Nasution as
Independent Commissioner and Mr. Imam Apriyanto
Putro as Commissioner. The GMS then appointed Mr.
Rinaldi Firmansyah and Mrs. Pamela Johanna Pamiyati
Waluyo as Independent Commissioner and Mr. Margiyono
the
Darsasumarja as Commissioner. Furthermore,
composition of Board of Commissioners of the Company
as of April 17, 2015 is as follows:
Hendri Saparini
: President Commissioner
Implementation of GCG of Company received recognition
Dolfie Othniel Fredric Palit : Commissioner
from several independent parties. During the 2015 Telkom
received some prestigious awards that include: Indonesia
Sustainability Reporting Award (ISRA), The Best State
Owned Enterprise of the IICD and the Annual Report
Hadiyanto
: Commissioner
Margiyono Darsasumarja : Commissioner
Rinaldi Firmansyah
: Independent Commissioner
Award (ARA). The Company is expected to continuously
Parikesit Suprapto
: Independent Commissioner
strengthen its governance practices in accordance with
Pamiyati Pamela Johanna : Independent Commissioner
the best standards that exist to ensure the company is
well managed and accountable.
Views on Committee Performance under the
Board of Commissioners
In carrying out its oversight function, the Board of
Goals for the future
Board of Commissioners believes that Telkom should
strengthen synergies between subsidiaries to create
a more efficient operational performance, given the
Commissioners is assisted by three committees, namely
increasingly competitive telecommunications industry
the Committee on Evaluation and Monitoring Risk
in the future. The Company must continue to grow, so
Planning (KEMPR), the Audit Committee, and Nomination
investing in infrastructure development should be done
and Remuneration Committee, which has worked well
consistently, effectively and efficiently. Mobile business
and gave full support to the Board so that the Board can
unit as a major contributor of the Company to be
perform its duties and function to supervise the Board
further strengthened by aggressively growing its digital
of Directors for 2015. The Board also provides advice
business segments. Development of Indonesia Digital
and input to the Board of Directors to ensure that the
Network connectivity should be able to reduce the gap
business strategy and governance is conducted well.
so as to bring greater benefits for the nation of Indonesia.
Supervision and inputs by BOC is delivered through
Furthermore, Telkom must also prepare well to grow its
KMPR, the Audit Committee, and the Nomination and
business by expanding and representing Indonesia in the
Remuneration Committee.
Asia region.
These committees have run its course in accordance with
the duties and responsibilities effectively by carrying out
a systematic review of management processes on the
activities of the corporation.
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PT Telkom Indonesia (Persero) Tbk
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
Appreciation to Stakeholders
On this occasion, the Board expressed its gratitude and highest appreciation to Mr. Johnny Swandi Sjam, Mr. Virano
G Nasution and Mr. Imam Apriyanto Putro who has carried out duties as a Commissioner, and fulfilled their roles and
contributions to the Company during their tenure.
The outstanding performance throughout 2015 will not be achieved without the hard work of the Board of Directors,
management and all employees of Telkom, and of course to the trust and support of our shareholders, customers
and business partners. On behalf of the Board of Commissioners, we deliver the highest appreciation for their hard
work, dedication, commitment and contribution that has been poured by the Board of Directors, management and all
employees of Telkom throughout 2015. Hopefully, this good performance will increasingly push us to carve a better
performance in 2016.
Jakarta, March 28, 2016
hendri Saparini
President Commissioner
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PREFACEMANAGEMENT REPORTFINANCIAL AND PERFORMANCE HIGHLIGHTSGENERAL INFORMATION OF TELKOM INDONESIA From left to right:
Hadiyanto (Commissioner), Dolfie Othniel Fredric Palit (Commissioner), DR. Hendri Saparini (President Commissioner),
Pamiyati Pamela Johanna Waluyo (Independent Commissioner), Margiyono Darsasumarja (Commissioner),
Parikesit Suprapto (Independent Commissioner), Rinaldi Firmansyah (Independent Commissioner),
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PT Telkom Indonesia (Persero) Tbk
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES REPORT Of ThE PRESIDENT DIRECTOR
Alex J. Sinaga
President Director
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PREFACEMANAGEMENT REPORTFINANCIAL AND PERFORMANCE HIGHLIGHTSGENERAL INFORMATION OF TELKOM INDONESIA Strategic Work Programs
In 2015, Telkom continued with the Three Main Programs
Meanwhile, Indonesia Digital Network or IDN consists of id-
Access, which is a fiber optic-based broadband to homes,
that were initiated two years ago to maintain sustainable
id-Ring which is the fiber-based broadband highway with
growth. The three Programs are maintaining Telkomsel’s
national scale as backbone, and id-Convergence which
double digit growth, pushing the digital business through
is the high capacity data center integrated with Telkom
Indonesia Digital Network, and developing and expanding
network, and is the infrastructure foundation to support
international business.
data services in celular or fixed line business. We are
confident that a broadband network infrastructure that
Telkomsel has a very strategic role considering its
is superior in terms of coverage, capacity and capability
contribution of Telkom’s revenue, therefore it is important
will provide the best experience for Telkom’s customers.
for us to ensure that Telkomsel have performed well.
We invested the majority of capital expenses to push
In relation to the third strategic program, Telkom has
Telkomsel’s performance and to ensure that the capacity
launched several initiatives to increase its footprint
and quality of Telkomsel’s network can provide prime
regionally, including by developing and expanding
customer experience, especially in data services. We
businesses in 10 countries with various business models
also have an initiative to create a synergy in network
with measured risks and are aligned with Telkom’s
optimization at Group level to improve efficiency at both
overall strategy.
Telkom and Telkomsel.
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PREFACEMANAGEMENT REPORTFINANCIAL AND PERFORMANCE HIGHLIGHTSGENERAL INFORMATION OF TELKOM INDONESIA
Company Performance in 2015
In 2015, Telkom booked a very good financial performance.
by 15.8% to become Rp70,052 billion in 2015. Meanwhile
the company’s net income increased by 7.0% to become
The consolidated revenues amount to Rp102.47 trillion,
Rp15,489 billion.
grew by 14.2% and for the first time surpassed the Rp100
trillion. The main driver of Telkom revenue growth is the
Operationally, Telkomsel strengthened its dominance in
data, internet & IT segment (excluding SMS), which grew
the celular market with 152.6 million customers, increased
by 37.5%. This segment contributed 32% to Telkom’s total
8.6% compared to previous year. To improve customer
revenue, a significant increase from last year’s 26%. This
experience, especially
in data services, Telkomsel
is a sign that the Company is on the right track to be a
continued its network strengthening from capacity and
digital company.
outreach sides. Throughout 2015 Telkomsel built 17,869
BTS such that at the end of 2015 Telkomsel has 103,289
The Company recorded a high EBITDA growth of 12.6% to
BTS or up 20.9%, from the previous year, where half of
reach Rp51,415 billion with a superior EBITDA margin of
the BTS are 3G/4G BTS. This effort results in more than
50.2% while there is an operational cost pressure with the
100% increase in data traffic to reach 492.2 Petabytes.
infrastructure deployment and business expansion in the
Telkomsel also continues to improve its 4G LTE network
cellular and fixed line segments. Operational costs raised
outreach, such that in 2015 Telkomsel has offered 4G LTE
services in 14 cities.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES For fixed line, starting in 2015, Telkom is committed to
In the past few years, Telkom consistently invested in
rejuvenate its fixed line business by launching IndiHome
telecommunications infrastructure based on broadband,
Triple Play, a product that offers 3 services simultaneously,
be it backbone or access, celular or fixed line for domestic
which are the fixed line phone, high speed internet, and
or global. This reflects the focus of Telkom’s future
IPTV, all fiber optic-based. Telkom agressively builds its
business which is to provide the best data or broadband
network such that at the end of 2015 it has 10 million
experience for customers.
homes-passed fiber, as well as 1 million IndiHome
customers in 12 months since launching.
Indonesia’s data service is still at growth cycle with
a huge potential. In cellular segment, the number of
At the same time, we also strengthened our backbone
smartphone user is still low with penetration of around
fiber network that connects all regions in Indonesia. In
40% out of total Telkomsel’s customer, but with a high
November 2015, we have completed the Sulawesi Maluku
growth of number of smartphone user at more than 50%
Papua Cable System Project (“SMPCS”) that narrows the
YoY. Average monthly data consumption by smartphone
digital gap in the Eastern Indonesia. At the end of 2015
user is still relatively low at around 800 Mb, lower than in
we have 81,895 km backbone fiber network that connects
the developed markets. In the future, the combination of
Aceh to Papua.
the growth of smartphone user and the increase in data
consumption will result in higher data traffic. Last year the
To support the infrastructure strengthening, Telkom
growth of celular data traffic reached 110%. Meanwhile,
consistently allocates high capital expenditure. This is
Telkomsel will also expand the range of services of its 4G
because the data services, mobile and fixed line, is still
LTE network to 40 cities in Indonesia and this will further
growing. Throughout 2015, we spent Rp26.4 trillion or
increase data use by our customers.
26% of our revenue to build infrastructure with the focus
of supporting data services.
In legacy service, we are still striving for growth using
pricing strategy based on cluster, with reliable
IT
Telkom’s excellent financial and operational performances
infrastructure. While the growth is limited, the revenue
are appreciated by the capital market. Troughout 2015,
from legacy services is still dominant with contribution
Telkom’s share Price increased by 8.4%, far beyond the
more than 60%. Meanwhile, around 60% of Telkomsel
growth of the composite index that grew by negative
customers are still using 2G or feature phone.
12.1%, and on December 31, 2015, Telkom’s share Price
reached Rp3,105 or amounting to market capitalization
Growth potential also comes from the fixed line business,
of Rp313 trillion. Telkom placed at third position in terms
especially fixed broadband. We are aggressively building
of market capitalization size at the Indonesia Stock
our fiber-based network, and at the end of 2015 we
Exchange (“IDX”) with a market share of 6.7% of IDX’s
have 10 million fiber home-passed. We are also striving
total capitalization.
Company Prospect
We are confident that telkom has a good business
prospect and will be able to grow sustainably. The source
of growth in the future will be data services, including the
celular and fixed line segments.
to monetize the fiber network by empowering out fiber
technician resources, in terms of quantity and capacity.
With IndiHome Triple Play product, we hope to accelerate
the monetization of the fixed broadband network.
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PREFACEMANAGEMENT REPORTFINANCIAL AND PERFORMANCE HIGHLIGHTSGENERAL INFORMATION OF TELKOM INDONESIA We are still looking for business opportunities regionally
Good Corporate Governance Award – Excellence for
that has strategic alignment to our portfolio and can add
Infrastructures, Utilities and Transportation Companies
value to Telkom as a whole. We plan to expand and develop
from Economic Review, IICD Award - The Best Owned
prospective business opportunities as well as exploring
State Enterprise from the Indonesian Institute for
profitable business models. In developing international
Corporate Directorship (IICD), Annual Report Award
business, we open the possibility for inorganic growth. We
- 3rd winner Listed Non-Financial State-Owned
need to ensure that acquisition of prospective companies
Enterprises from the Financial Services Authority
are done prudently in measured scale and by considering
(OJK), the Indonesia Stock Exchange (IDX), and the
value addition versus risks.
National Committee for Governance Policy (KNKG),
Best Listed Companies Award - Top Performing Listing
Starting in 2016, we plan to utilize our property assets
Companies 2015 from Investor Magazine, and Indonesian
in a more systematic and structured manner. Telkom
Sustainability Reporting Award 2015 from the National
has more than 14 million square meters of land across
Center for Sustainability Reporting (NCSR).
Indonesia. We are confident that with the right business
model, the assets will be able to provide more benefits
to the company.
Corporate Social Responsibility
We fully realize that Telkom is an inseparable part of the
communities, such that we always endeavor to contribute
Corporate Governance
We endeavor to continuously improve the implementation
to our communities and to the environment wherever we
operate. We believe that the best form of contribution
quality of our good corporate governance (“GCG”). We
is by empowering the communities with a directed
use 2015 as the year of implementation of GCG culture. By
approach to foster mutually beneficial relationships.
using GCG principles as norms in daily operation, we hope
that the quality of GCG implementation will continue to
In practice, we align Telkom’s corporate social responsibility
be maintained.
(“CSR”) strategy with the company’s vision and mision
and the business portfolio. The CSR theme we have used
We continue to improve our policies and GCG supporting
is “Telkom Indonesia for Indonesia” with the objective of
system infrastrcutures through new initiatives to enhance
enlightening the society through activities based on the
the implementation quality of GCG, through the three
three main pillars of Telkom CSR, which are development
pillars of Strengthening of Governance Structure, Process
of digital environment, society, and economy.
Strengthening, Governance and Culture Strengthening.
The scope of Telkom CSR is focused on the three main area,
We also always improve the implementation of the
which are social, environmental, and economic activities.
Enterprise Risk Management (ERM) by improving the
The social activities are focused on the improvement of
policies and the risk management framework. Until today,
the quality of education and the provision of educational
we require all staff and our subsidiaries staff to sign
infrastructures, preservation of religious, art, and sport
Integrity Pact every year. We also continuously improve
values, support to preservation of national culture, and
the IT governance as well as the internal control to ensure
support to improve te quality of health of the communities.
the reliability of financial statements. Since 2011, we
Environmental activities are focused on humanitarian and
started adopting the International Financial Reporting
disaster relief programs and environmental preservation
Standards (IFRS) as an implementation of our GCG.
initiatives. Economic activities are focused on community
Throughout 2015, we have received awards from various
provision of value add to all Telkom’s stakeholders,
independent parties as acknowledgements to the
provision of communication infrastructures and general
implementation of GCG at Telkom, including Indonesia
information, development of SMEs, and development of
empowerment, improvement of knowledge and skills,
digital creative industry.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES human Resources Development
Human resources (HR) is the company’s most important
asset. The advance or setback of a company is determined
Change of the Board of Directors
Composition
Throughout 2015, there has been no change in the
by the quality of its human resources, at management and
composition of the Board of Directors. Since December
staff levels.
19, 2014, the composition of the Board of Directors is as
follow:
At Telkom, we developed a planned and structured HR
development program. We prepared a Human Capital
Alex J. Sinaga
: President Director
Master Plan designed to optimize HR potential at Telkom
Indra Utoyo
: Director
Group. The development of the Human Capital Master
Abdus Somad Arief
: Director
Plan is done in integrated manner referring to the annual,
Heri Sunaryadi
: Director
medium term and long term corporate plans, and is
Herdy Rosadi Harman
: Director
aligned to the business strategy of each entity under
Dian Rachmawan
Telkom Group. The development of the Human Capital
Honesti Basyir
: Director
: Director
Master Plan is also based on the accurate and measured
Muhammad Awaluddin : Director
human resources supply and demand analysis, using
reference data from the telecommunication industry.
Acknowledgment
On behalf of the Directors, we would like to thank all the
In the HR management strategy, we emphasize on
stakeholders, Board of Commissioners, and all the staff
harmonizing the quantity and competence of the HR
for all their hard work and the extraordinary performance.
to be aligned with our business portfolio what is now
We would also like to thank our customers and company
focused on the digital business. It is our commitment
partners who have supported us throughout the year.
to always improve the synergy and efficiency between
entities under Telkom Group and to instill on the values
Subsequently, we will present the Company performance
and cultures that have been set.
and achievements in 2015 comprehensively in the Annual
Corporate Culture
We uphold the Telkom Way, which is a belief system
Report that includes the Financial Statements for 2015
that have been audited by the Purwantono, Sungkoro &
Surja (a member firm of Ernst & Young Global Limited)
and a reference for all Telkom’s staff, as well as the
public accounting firm with the opinion that Telkom
supporting pillar of the corporate culture that includes
Consolidated Financial Statements presents fairly in
three elements, which are: the Philosophy to be the Best
all material respects according to Indonesian Financial
that includes the philosophies for all staff to be the best;
Accounting Standards.
the Principles to be the Star that includes the principles
to be a stellar individual with three values Solid, Speed,
Smart (3S), and the Practices to be the Winner which
is the standard of best practices to be a winner. Telkom
Group’s organizational culture is developed based on
eight elements, Spirituality, Style, Shared Values, Strategy,
Jakarta, March 28, 2016
Staff, Skill, System and Structure (8S).
Alex J. Sinaga
President Director
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PREFACEMANAGEMENT REPORTFINANCIAL AND PERFORMANCE HIGHLIGHTSGENERAL INFORMATION OF TELKOM INDONESIA From left to right:
Dian Rachmawan (Director), Heri Sunaryadi (Director), Indra Utoyo (Director),
Honesti Basyir (Director), Muhammad Awaluddin (Director), Alex J. Sinaga (President Director),
Herdy Rosadi Harman (Director), Abdus Somad Arief (Director).
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 36
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PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT 04
GENERAL INFORMATION
OF TELKOM INDONESIA
39
40
42
Telkom Indonesia at a Glance
Telkom Indonesia Profile
56
76
Telkom Indonesia Management
Telkom Business Group
Telkom Indonesia Milestones
82 Employee Numbers
44 Awards and Certifications
and Composition
49
52
Significant Event 2015
84
Stock Overview and Obligation
Corporate Identity
Telkom Indonesia
89 Capital Market Supporting
Professional
53
Vision and Mission
91
Capital Market Trading
54 Corporate Strategy
Mechanism and Telkom ADS
54 Cultural Values
94
Address of Telkom Indonesia
55 Articles of Association
55
55
Product and Services
Trademarks, Copyrights,
Industrial Designs
and Patents
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PT Telkom Indonesia (Persero)Tbk
PT Telkom Indonesia (Persero) Tbk
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
GENERAL INfORMATION Of TELKOM INDONESIA
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT TELKOM INDONESIA AT A GLANCE
Telkom is a State-owned Enterprise (Badan Usaha Milik
Negara/”BUMN”) that conducts business activities
in the field of telecommunications and network
services. The shareholders of the Company consist of
the Government of the Republic of Indonesia, owning
52.55% of shares, and the general public, owning
47.45% of shares. The shares of the Company are
publicly traded at BEI and NYSE, using the TLKM and
TLK tickers, respectively.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES TELKOM INDONESIA PROfILE
We continue to seek innovation to increase customer experience and develop synergies among all products, services
and solutions. Our long-term vision, which was revised in August 2015 as part of corporate strategic planning process
to reflect our aspirations to be a more significant player in the digital industry, is to “Be the King of Digital in the
Region”. Our mission is to “Lead Indonesian Digital Innovation and Globalization”. In order to achieve such vision and
mission, we are undergoing a comprehensive transformation in five aspects: business transformation, human resources
transformation, structural transformation, cultural transformation, and infrastructure and system transformation.
Company Name
Perusahaan Perseroan (Persero)
PT Telekomunikasi Indonesia Tbk
Abbreviated Name
PT Telkom Indonesia (Persero) Tbk
Commercial Name
Telkom
Business License
510/3-0689/2013/7985-BPPT
Website
www.telkom.co.id
Domicile
Bandung, West Java
Address
Gedung Graha Merah Putih,
Jl. Japati No. 1 – Bandung,
The information found on our website
does not form part of this Form 20-F
and is not incorporated by reference
herein.
Email
corporate_comm@telkom.co.id,
West Java, Indonesia 40133
investor@telkom.co.id
Line of Business
Telecommunications and network
services
Telephone
+62-22-4521404
Tax Identification Number
01.000.013.1-093.000
facsimile
+62-22-7206757
Certificate of Company Registration
101116407740
Call Center
147
Rating
idAAA (Pefindo) for 2012, 2013, 2014
and 2015
Date of Legal Establishment
November 19, 1991
40
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PT Telekomunikasi Indonesia, Tbk
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT Legal Basis of Establishment
Based on Government Regulation No.25 of 1991, the
Offices
• 1 Head Office
status of our Company was converted into a state-
• 7 Regional Division Offices (“Telkom Regional”) and
owned limited liability corporation (“Persero”), based on
58 Telecommunication Areas
the Notarial Deed of Imas Fatimah, S.H. No. 128 dated
September 24, 1991, as approved by the Ministry of Justice
of the Republic of Indonesia by virtue of Decision Letter
Service Centers
•
572 Plasa Telkom outlets
No.C2-6870.HT.01.01.Th.1991 dated November 19, 1991 and
•
2
International GraPARI
in Hong Kong and
as announced in the State Gazette of the Republic of
Singapore
Indonesia No.5 dated January 17, 1992, Supplement to the
•
414 GraPARI (including those managed by third
State Gazette No.210.
parties)
•
392 GraPARI Mobile Units
Ownership
• The Government of the Republic of Indonesia 52.55%
Other Information
• Public 47.45%
Listing on the Stock Exchange
Our shares of common stock were listed on the IDX and
NYSE on November 14, 1995. Since June 5, 2014, our shares
of common stock ceased to be traded on the London Stock
Exchange (“LSE”), and since May 16, 2014, our shares of
•
•
•
Public Accountant
KAP Purwantono, Sungkoro & Surja (a member
firm of Ernst & Young Global Limited)
Securities Administration Bureau
PT Datindo Entrycom
Trustee
PT Bank CIMB Niaga Tbk
common stock have been deregistered from the Tokyo
• Custodian
Stock Exchange.
Stock Code
• “TLKM” on the “IDX”
• “TLK” on the “NYSE”
PT Kustodian Sentral Efek Indonesia
•
Rating Agency
PT Pemeringkat Efek Indonesia
• ADR Depositary
The Bank of New York Mellon Corporation
• Authorized Agent for Services in the United
Authorized Capital
1 Series A Dwiwarna Share and 399,999,999,999 shares
States of America
Puglisi and Associates
Series B
Issued and fully Paid Capital
1 Series A Dwiwarna Share and 100,799,996,399 shares
Series B
Employee Union
The Telkom Employees Union (“SEKAR”)
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
TELKOM INDONESIA MILESTONES
turned
Telekomunikasi was
1974
PN
into
Perusahaan Umum Telekomunikasi Indonesia
(“Perumtel”), which provided domestic and
international
telecommunications services,
Industri
and subsequently spun-off PT
Telekomunikasi Indonesia, which manufactured
telecommunications equipment,
into an
independent company.
1856,
1856-1884
the Dutch
On October 23,
Colonial Government deployed
the
first electromagnetic telegraph service
operation in Indonesia, which connected
Jakarta (Batavia) and Bogor (Buitenzorg).
We consider this event to be part of
the beginning of Telkom’s history and
have thus adopted October 23 as the
anniversary of our “founding”.
In 1884, the Dutch Colonial Government
established a private entity,
“Post en Telegraafdienst“ to provide postal
and telegraph services.
1906-1965
In 1906, the Dutch Colonial Government
established a government agency to
assume control postal services and
telecommunications in Indonesia, named
Jawatan Pos, Telegrap dan Telepon (Post,
Telegraph en Telephone Dienst). In 1961, its
status was changed to newly-established
state-owned company, Perusahaan Negara
Pos dan Telekomunikasi (“PN Postel”). In
1965, the Government separated postal
and
services by
dividing PN Postel into Perusahaan Negara
Pos dan Giro and Perusahaan Negara
Telekomunikasi (“PN Telekomunikasi”).
telecommunications
limited
Indonesia
1991
Perumtel was transformed into a state-
owned
liability company and
renamed Perusahaan Perseroan (Persero)
PT Telekomunikasi
under
Government Regulation No.25 of 1991. Our
business operations was then divided into
12 telecommunication regions which was
later reorganized in 1995 into seven Divre,
namely Divre I Sumatra, Divre II Jakarta
and the surrounding areas, Divre III West
Java, Divre IV Central Java and Yogyakarta,
Divre V East Java, Divre VI Kalimantan, and
Divre VII Eastern Indonesia.
1995
On May 26, 1995, we and Indosat established
Telkomsel, we conducted our initial public
offering on November 14, 1995, with our shares
listed on the Jakarta Stock Exchange and
the Surabaya Stock Exchange (which have
since merged to become the IDX). Our shares
were also listed on the NYSE and the LSE in
the form of ADSs, and were publicly offered
without listing on the Tokyo Stock Exchange.
1999
Law No.36 of 1999 on the Elimination of
Telecommunications Monopoly, which became
effective in September 2000, allowed the entry
of new market participants to foster competition
in the telecommunications industry.
2001
We and Indosat eliminated joint ownership and
cross-ownership in certain companies as part
of the restructuring of the telecommunications
industry in Indonesia. We acquired Indosat’s
35.0% shareholding in Telkomsel, increasing our
shareholding to 77.7%. We divested our 22.5%
shareholding in PT Satelit Palapa Indonesia,
or Satelindo, and 37.7% shareholding in PT
Lintasarta Aplikanusa. At the same time, we lost
our exclusive rights as the sole operator of fixed
line services in Indonesia.
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT
2002
We divested a 12.72% shareholding in Telkomsel
to Singapore Telecom Mobile Pte Ltd (“Singtel
Mobile”), and decreasing our shareholding in
Telkomsel to 65.0%.
We acquired the entire share capital of PINS
in three stages, with 30.0% of the shares
acquired on August 15, 2002, 15.0% on
September 30, 2003 and the remaining 55.0%
on December 31, 2004.
launched an
2004
We
international direct
dialing service for fixed lines with the
access code 007.
2009
We underwent a transformation from an information
to become a
telecommunication company
Telecommunication,
and
Edutainment (“TIME”) company. Our new image
was introduced to the public with a new corporate
logo and tagline of “the world in your hand”.
Information, Media
completed
2010
We
JaKaLaDeMa
submarine fiber optic cable project in April
2010 which connected Java, Kalimantan,
Sulawesi, Denpasar and Mataram.
the
2012
increased broadband penetration
We
through the development of
Indonesia
Wi-Fi as part of our “Indonesia Digital
Network” program. We reconfigured our
business portfolio from TIME to TIMES
Information, Media,
(Telecommunication,
Edutainment and Services) to
increase
business value creation.
2013
As of 2013, we have been operating
in eight jurisdictions, namely, Hong
Kong-Macau, Timor Leste, Australia,
Myanmar, Malaysia, Taiwan and the
United States of America.
2007-2008
Telin Singapore officially established in
late 2007 as the first Telkom footprint
in international business. In 2008, Telin
Singapore officially operated.
2011
We commenced the reform of our
telecommunications
infrastructure
through the Telkom Nusantara Super
Highway project, which unites
the
Indonesian archipelago
from Sumatra
to Papua, as well as the True Broadband
Access project to provide internet access
with a capacity of 20 Mbps to 100 Mbps to
customers throughout Indonesia.
2005
The Telkom-2 Satellite was launched to
replace all satellite transmission services
that were previously provided by Palapa
B-4, which brought the total of satellite
launched by us
to eight satellites,
including Palapa A-1.
services
2015
We launched IndiHome, which
consisting
bundles
primarily of broadband internet,
fixed wireline (Home Phone),
and
(Cable
UseeTV) services.
interactive TV
2014
We were the first operator in Indonesia
launch 4G LTE
to commercially
services in December 2014.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES AWARDS AND CERTIFICATIONS
AWARDS
February 11, 2015
Telkom received an award in the telecommunication
category with an excellent grade in the Excellence
Service Experience Award 2015 by Carre CCSL and
Bisnis Indonesia Daily.
February 12, 2015
Telkom achieved The Best Achievement Award in
Indonesia Best Corporate Transformation Awards
2014 from SWA and WIN International magazine
for its success in conducting innovation and
transformation in the company.
April 29, 2015
Telkom received Golden Partnership
Award 2015 from Rakyat Merdeka Online.
May 7, 2015
Telkom Corporate University received
the Best Overall Corporate University
Award in the Global Council of
Corporate University Award.
June 5, 2015
Telkom received the Most Honored
Organization of The Year Award in the Asia
Pacific Stevie Awards event. Telkom received
11 (eleven) awards, among others Gold Winner
and Silver Winner.
May 12, 2015
Telkom received the Top Performing Listing
Companies 2015 Award in the Best Listed
Companies Award in Infrastructure field from
Investor Magazine.
June 11, 2015
• Telkom received the Corporate Image Award
in the category of Best Telecommunication
Company and Best Internet Provider.
• Telkom received the Warta Ekonomi’s Living
Legend Companies Award 2015 as the company
that has the best financial performance in 2014.
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PT Telkom Indonesia (Persero) Tbk
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT August 6, 2015
Telkom received the Sindo Weekly CSR Award
2015 as Best Programmed Award 2015.
June 16, 2015
• Telkom received the Bisnis Indonesia
Award 2015 from Bisnis Indonesia with
infrastructure, utility and transportation
sector.
• Best Listed Emiten Award for
infrastructure, utility and transportation
category, MNC Business Award from MNC
Business Channel.
August 6, 2015
Telkom was included in the Forbes Global
2000 Companies.
August 13, 2015
Telkom received 1st winner Indonesia MAKE Award
2015, held by Dunamis Organization Services.
August 25, 2015
Telkom received the Social Business
Innovation Award from Warta Ekonomi
as Top 10 Social Business Innovation
Company 2015.
August 26, 2015
Telkom received the Indonesia’s Good
Corporate Governance Award from Economic
Review Magazine.
August 27, 2015
Telkom was selected as the winner for emiten in
infrastructure, utility, and transportation sectors
in Anugerah Perusahaan Terbuka Indonesia (the
Indonesia’s Public Company Award), held by
Economic Review.
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PT Telkom Indonesia (Persero) Tbk
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES September 5, 2015
Telkom was awarded three times
in a row as The Best Company on
Marketing, Gold Winner Strategic
Marketing and Gold Winner
Tactical Marketing
October 1, 2015
TelkomGroup swept 9 (nine) Frost &
Sullivan Indonesia Excellence Awards.
October 28, 2015
Achieved the award of the best
winner in the Inspirational PR
Program competition in the
category of State-Owned Public
Company and Local Region-
Owned Public Company Corporate
Program in The 4th Indonesia
Public Relations Awards & Summit
(IPRAS) event.
September 22, 2015
Telkom received 3rd Winner
Annual Report Award
2014 for Non Financial
Listed State-Owned Public
Company from OJK, IDX
and National Commission
of Governance Policy
(Komite Nasional Kebijakan
Governance/KNKG).
October 9, 2015
Telkom received
Marketing 3.0 Awardee of
The Year Award from an
international institution
named Asia Marketing
Federation (AMF).
October 23, 2015
Telkom achieved the first rank
in Indonesia’s Top 100 Most
Valuable Brands, held by
Brand Finance in cooperation
with SWA magazine.
October 22, 2015
Telkom achieved 7 (seven) awards
in Indonesia Human Capital Study
Award 2015 and was rewarded
as the best company in human
capital management from
Dumanis Organization Services.
October 25, 2015
Telkom achieved 13 (thirteen) international Stevie Awards from the
International Business Award (IBA).
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT November 6, 2015
Achieved 4 (four) awards in the
November 16, 2015
Telkom achieved Indonesian Institute
Indonesia Infrastructure Week 2015
for Corporate Directorship Award.
event as TOP IT & TELCO 2015.
November 25, 2015
Telkom achieved Forbes Indonesia Best of The Best Award 2015 as The Top 50
Companies for 2015.
December 16, 2015
Telkom achieved Best Non
Financial in Telecommunication
and Publication sectors of
State-Owned Public Company
award from Investor Magazine.
December 17, 2015
Telkom achieved Good
Corporate Governance Award
Indonesia’s Most Trusted
Companies from SWA and
IICG as trusted company
based on investors and
analysts’s assessment survey.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES CERTIFICATION
1
2
3
4
5
6
7
No
Date
Setification
Receiver
Given by
Valid until
2013
ISO 9001:2008
PT Dayamitra Telekomunikasi
(Mitratel)
United Register
for System (URS)
1
2
3
4
5
6
7
2013
ISO 9001:2008
Divisi Business Service
2013
ISO 9001:2008
PT Telkom Akses
2012
ISO 9001:2008
PT Finnet
2012
2012
2012
AS/NZS ISO
9001:2008
ISO/IEC
27001:2005
ISO/IEC
27001:2005
PT Administrasi Medika(AdMedika)
PT Finnet
DQS Gmbh
Divisi Infratel dan Divisi Access
TUV Rheinland
Japan Ltd
TUV Rheinland
Cert GmbH
TUV Rheinland
Cert GmbH
DQS GmbH
Verification New
Zealand Limited
2016
2016
2016
2015
2015
2015
2015
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT SIGNIFICANT EVENT 2015
15. In order to ensure a successful the 2015 National Selection of
State Universities (“SNMPTN”), Telkom cooperated with the
2015 SNMPTN Committee to facilitate network in the 2015 online
SNMPTN registration service.
13. Minister of Communication and Informatics, Rudiantara,
together with the Ambassador of the United States to
Indonesia, Robert O. Blake, officially announced the Program
of Social Media for Social Good in Jakarta Digital Valley.
18. Telkom held 18 (eighteen) Broadband Port in 2015 for support
Indonesian Maritime. This is in line with the government
program to support
Indonesia
into an
independent,
advanced and powerful maritime country.
26. In order to support Indonesia’s digital creative industries and
with its readiness for market expansion, Telkom launched
Indigo Incubator for new startups and “Indigo Accelerator”
for digital startups.
03. Telkom supported the Universitas Terbuka Service Center
(SALUT) by fostering cooperation in the information and
communication technology based educational facility and
infrastructure development of the Open and Distance Learning
University (PTTJJ).
01. The Indonesia-US Submarine Cable Communication System
(SEA-UAS) is commenced that will connect five regions,
namely Manado
in
Indonesia, Davao
in the Southern
Philippines, Piti in Guam, Honolulu in Oahu Island of Hawaii,
Los Angeles - California in the United States.
19. Telkom supported the successful 60th Anniversary of the
Asia-Africa Conference, which took place on April 19-24, 2015
by providing world-class ICT services.
03. Telkom improved the infrastructure in the eastern region of
Indonesia by building 345 km long of Luwuk Tutuyan Cable
System, connecting East Sulawesi and North Sulawesi.
10. President Joko Widodo officially launched development
project of optical fiber broadband backbone network
infrastructure of the Sulawesi, Maluku, Papua Cable System
(SMPCS) in Manokwari, West Papua. This submarine cable
development is Telkom’s gift in improving Indonesia through
fair distribution of information and communication throughout
the country that stretches from west to east.
JANUARY
FEBRUARI
FEBRUARY
MARCH
APRIL
MAY
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FEBRUARI
JULY
AUGUST
SEPTEMBER
05. Telkom, through its subsidiary, Telin, develop data center and
telecommunications hub located in Singapore. This construction
through Groundbreaking Ceremony was inaugurated by Indonesian
Minister of SOE, Rini M. Soemarmo and Senior Minister of State (Trade
and Industry) Singapore, Lee Yi Shyan in Jurong, Singapore.
16. Telkom prepared infrastructure and excellent services, by establishing
the 2015 TelkomGroup RAFI Post as part of the 2015 TelkomGroup
SiagaRAFI for the Lebaran’s homecoming momentum of 2015. Through
this program, the Minister of Communication and Informatics and the
CEO of TelkomGroup also monitor Telkom services prior to Eid Al-Fitr.
17. Telkom with SOE in West Java held CSR activities, inline with Ministry of
SOE program “BUMN Hadir untuk Negeri” in commemoration of the 70th
Independence Day of RI. The various activities were held including green
walk, outdoor cinema (layar tancap), recycling and clean environment
(Dalang Bersih), veteran house renovation, free medical treatment and
70th Independence Day ceremony.
19. Telkom Group Synergy launched International Remittance Services in
Timor Leste, with the signing of the Tripartite cooperation between
Telkomsel, Finnet Indonesia and Banco Nacional de Commerio de
Timor Leste (BNCTL) by providing cash to cash and cash to bank
remittance services.
10. Telin Malaysia, as one of Telkom subsidiaries, launched Kartu As 2 in
1 at Kuala Lumpur. Telin Malaysia cooperating with Malaysia mobile
operator, Umobile, for serving Indonesian community in Malaysia. Kartu
AS 2 in 1 is aimed to assist Indonesian migrant workers (TKI) in Malaysia
in communicating with more competitive rates.
15. PINS, as a subsidiary, in cooperation with T-System supported the
modernization of airports in Indonesia in an effort to provide world-
class service system. This collaboration provides ground-handling
system at airports by improving Airport Management System solution.
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT 17. Telkom, through its subsidiary, Telkom Telstra, launched the
first customer experience center (CEC) services in Indonesia
by demonstrating the managed solutions service.
19. Telkom in cooperation with IT Code4Nation forum held
Hackathon Merdeka 2.0, which was initiated by Code4Nation
in Bandung Digital Valley. This event took place simultaneously
in 28 cities in Indonesia in a form of a competition to create
applications that utilize information technology advancement
to solve national problems.
19. Telkom Group as a consortium member in the South East
Asia – Middle East -Western Europe 5 (“SEA-ME-WE 5”)
submarine cable system deployed submarine cables at
Cable Landing Station in Puak Dumai beach. SEA-ME-WE
5 submarine cables system was planned to be ready for
operation in November 2016.
25. The President Director of Telkom rang the Closing Bell of the
Wall Street Trading floor. Telkom is committed to keep being
a multi listing company by celebrating 20 years anniversary
of its first stock recording in New York Stock Exchange
(NYSE). Closing bell ceremony at the NYSE was attended
by the President Director, Alex J. Sinaga, and the Board of
Commissioners as well as the Board of Directors, in addition
to the NYSE officials and The Bank of New York Mellon.
7. Strengthening the maritime defense of Poros Maritim Program,
Indonesian Navy encouraged us in developing satellite system
with VSAT backbone. The development of the Indonesian
Navy satellite system was aimed for KRI ships, outer island and
soldier who conducted operations and practices.
18. Telkom boosted customer confidence by achieving 1 Million
of IndiHome. Towards the end of 2015, IndiHome won the
trust of more than 1 million subscribers, which has so far
reached 930,000 new customers from all over Indonesia
throughout the year.
OCTOBER
NOVEMBER
DECEMBER
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES CORPORATE IDENTITY TELKOM INDONESIA
LOGO
The Company’s new logo was established by virtue of Company Regulation No. PD.201.03/2014
regarding New Corporate/Brand Identity dated 20 June 2014.
TAGLINE: ThE WORLD IN YOUR hAND
“The world in your hand” conveys the message that Telkom aims to make accessing the world
easier and more fun.
LOGO MEANING
Referring to Telkom’s corporate philosophy, namely Always the Best – a basic conviction
to always provide the best in any work conducted and to always enhance common
place conditions into better ones, which ultimately will shape the Company into the best
telecommunications enterprise.
PhILOSOPhY BEhIND ThE COLORS
Red – Courage, Love, Energy, Persistence
Reflects our ever-optimistic spirit and our courage to face challenges.
White – Innocence, Peace, Light, Unity
Reflects our spirit to always provide the best for the nation.
Black – Basic Color
Reflects determination.
Gray – Transitional Color
Reflects technology.
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VISION AND MISSION
Our vision and mission is stated in our long-term plans, as approved by the Board of
Commissioners on August 7, 2015.
VISION
Be the King of Digital
in the Region.
MISSION
Lead Indonesian Digital
Innovation and
Globalization.
Telkom is currently transforming itself towards being a digital company, to become the King of
Digital, with respect to the airwaves through its cellular business, land through its Fiber to the
Home program, and the sea through its Submarine Broadband Highway program and strong
regional footprint. Regional, in this regard, refers to the Asia Pacific region, including Southeast
Asia, East Asia, South Asia and Australia.
To become a reliable digital Company, we are transforming human, cultural and
organizational resources in order to lead digital innovation in Indonesia and to lead
Indonesia towards globalization.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES CORPORATE STRATEGY
1. Directional Strategy
We have undertaken a sustainable competitive growth
strategy to support and increase the capitalization of
our market. In a dynamic industrial environment, we seek
to implement a competitive growth strategy through
remarkable way with a variety of breaktrough innovations,
in order to reach our capitalization growth targets.
2. Portfolio Strategy
Our Portfolio Strategy
is our strategy
for the
development of the digital TIMES Telkom Group portfolio
synergistically
to provide seamless convergence
focused on providing value to our customers through
customer facing units/business segments (“CFUs”).
3. Parenting Strategy
In order to support more effective business growth, we
will continue to conduct strategic control, in order to
establish a more targeted and synergic control of our
subsidiary companies.
In order to ensure that our business transformation is
conducted in a smooth and comprehensive manner from
the corporate to the functional levels, we are implementing a
tiered strategy development model. Our corporate strategy
which was revised in 2015 was prepared after conducting
a strategic situation analysis, and strategy formulation,
strategy implementation, strategy evaluation and control.
CULTURAL VALUES
The System and Cultural formulations shall be further
developed
in accordance with prevailing business
demands and changes, in the effort to realize our vision
to continue achieving progress, to be more loved by our
customers, to be more competitive amidst industrial
completion and to continue to be a role model Company.
Since 2009, the Company has undertaken a new corporate
cultural transformation known as “The Telkom Way”. The
subsequent cultural development has been undertaken
since 2013 through the establishment of the Telkom Group
Leadership and Corporate Culture Architecture (“AKBP”),
designed to standardize and harmonize the leadership
and corporate culture patterns.
The Telkom Group Leadership and Corporate Culture
Architecture consists of:
Telkom Corporate
Philosophy
Telkom Leadership
Architecture
The Telkom Way
: Always the Best
: Lead by Heart,
Managed by Head
: Basic Belief – (Integrity,
Enthusiasm, Totality)
Core Values – (Solid, Speed, Smart)
Key Behavior – (Imagine, Focus,
Action)
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PT Telkom Indonesia (Persero) Tbk
Telkom Corporate Philosophy: Always The
Best
Corporate Philosophy: “Always the Best” serves as the
foundation of a Telkom individual’s mindset (basic belief)
to always do the best in all work conducted.
“Always the Best” is a basic belief to always be the best
or to always provide the best. “Always the Best” require
all Telkom Group individuals to have integrity, enthusiasm,
and totality.
Telkom Leadership Architecture: Lead by
heart, Managed by head
The Leadership Architecture consists of three core
components known as ‘3P’, namely philosophy, principle
and practice.
The Leadership Philosophy “to be the Best” (always be
the best) is a commitment that must be ingrained in a
Leader, by creating harmony between Heart and Head
(‘2H’) and synergy between Spirit and Strategy (‘2S’).
The Leadership Principle “to be the Star” is a reflection
of the philosophy ingrained in a Leader as a strong
foundation to act. “Lead by Heart”: to lead people (one
self and others). “Managed by Head”: to manage the
business and organization.
The Leadership Practices “to be the Winner” is a
behavioral standard consisting of the ideal practices
of a leader, winner or the manifestation of principles
implemented with the aim to achieve a common goal,
namely to be a winner.
The Telkom Way
The Telkom Way is a strong corporate culture that
serves as a reference for Telkom Group individuals in
the way they think and act on a daily basis that contains
the ‘3P’ core components, namely philosophy, principle
and practice.
Philosophy “to be the Best: Always the Best”
The Philosophy of “Always the Best” is a basic belief
that consists of basic philosophies for Telkom Group
individuals to become the best individuals, which is the
essence of the Company’s corporate culture, serving as
a foundation for the values and behavior of each and
every Telkom Group individual, putting forward integrity,
enthusiasm and totality.
The “To be the Star: Solid-Speed-Smart” (‘3S’) Principle
The “to be the Star” principle are core values containing
basic principle to be a star individual. The “to be the Star”
principle consists of three core values known as 3S: Solid,
Speed, Smart.
Solid refers to the creation of one heart (a pure heart),
one mind, and one resolve. “Solid” is an elaboration of the
first “Always the Best” element, namely integrity.
PT Telkom Indonesia (Persero) Tbk
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Speed refers to conducting work in a timely manner.
“Speed” is an elaboration of the second “Always the Best”
element, namely enthusiasm.
Smart refers to the manner of conduct, thinking and acting
in a smart way in conducting work by using sharp intuition,
rational thinking through creativity and innovation, that
results in further innovations, and exercising through
impressive actions. “Smart” is an elaboration of the third
“Always the Best” element, namely totality.
Practices “to be the Winner: Imagine-Focus-Action”
Practices “to be the Winner” is behavioral standards
that consist of ideal practices conducted with the aim
of becoming a winning individual by continuing to
implement IFA: Imagine, focus, Action.
ARTICLES Of ASSOCIATION
Articles of Association of the Company (“Articles of
Association”) has been registered under the Limited
Liability Company Law No.1/1995 and has been
approved by the Ministry of Justice of the Republic of
Indonesia based on the Decree of Ministry of Justice
No.C2-7468.HT.01.04.Th.97 of 1997. In connection with
the issuance of the Limited Liability Company Law
No.40/2007, which replaced the Limited Liability
Company Law No.1/1995, the Company has adjusted its
Articles of Association and has been approved by the
Ministry of Law and Human Rights of the Republic of
Indonesia based on the Decree of Ministry of Justice
and Human Rights No.AHU.46312.AH.01.02/2008 dated
July 31, 2008 and was registered in the State Gazette
of the Republic of Indonesia No.84 dated October 17,
2008, Appendix Official Gazette No.20155.
Our Articles of Association have been amended several
times, the latest amendment of which primarily related
to (i) certain adjustments as required under OJK rules
and MSOE rules, (ii) the expansion of our allowed
principal business activity and company supporting,
(iii) the addition/expansionof the special rights of Series
A Dwiwarna Stockholders, (iv) the change in certain of
restrictions to the authority of our Directors with respect
to measures of the Board of Directors which require the
approval of Board of Commissioners and (v) action of
perfecting of redaction and systematical of our Articles of
Association which related to increase subtance of Articles
of Association. This last amendment was accepted and
approved by the Ministry of Law and Human Right in its
Letter No.AHU-AH.01.03-0938775 dated June 9, 2015 and
Decision No.AHU-0936901.AH.01.02.Th.2015 dated June
9, 2015.
PRODUCTS AND SERVICES
The Company continues to innovate in sectors other than
telecommunications and to build synergy among all of its
products, services and solutions. Based on our business
portfolio, we have classified our products and services
into six categories, namely:
Telecommunication
We provide mobile services (mobile legacy, such as
voice and SMS, and mobile broadband), fixed services
(fixed voice and fixed broadband), interconnection and
international traffic services (wholesale - interconnection
and
infrastructure
(satellite and tower).
international business), network
Information
Information services offer digital enterprise that consists
of the ICT platform (enterprise connectivity, IT services,
data center & cloud, BPO/business process outsourcing,
and devices/hardware), and the smart enabler platform
(payments, digital advertising, and big data & other
smart enablers).
Media and Edutainment
Media and Edutainment services offers consumer digital
services that includes video/TV, mobile digital (such as
games and music), and property.
TRADEMARKS, COPYRIGhTS, INDUSTRIAL
DESIGNS AND PATENTS
We constantly seek to develop product and service
innovations in line with a dynamic business portfolio. To
provide both protection for and recognition of creativity
and innovation, we have registered a number of intellectual
property
trademarks, copyrights,
industrial design and patents with the Directorate General
of Intellectual Property Rights (“Ditjen HKI”) at the
Ministry of Law and Human Rights.
including
rights,
The intellectual property rights we have registered
include: (i) trademarks for our products and services,
corporate logo and name; (ii) copyrights on our corporate
name and logo, product and service logos, computer
programs, research and songs; and (iii) simple and
ordinary patents on technological inventions in the form
of telecommunications products, systems and methods.
The following table lists the applications that we have
submitted to apply for registration in 2015:
No
Title
Application No.
Application
Date
1
2
3
4
5
IndiHome Store
J002015030929
July 15, 2015
IndiStore
100% Fiber
Triple Play
J002015030928
July 15, 2015
J002015030927
July 15, 2015
J002015030930
July 15, 2015
IndiHome 100 Mbps
J002015030932
July 15, 2015
We did not submit or apply to register any copyrights or
patents in 2015.
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TELKOM INDONESIA MANAGEMENT
COMPOSITION Of ThE BOARD Of COMMISSIONERS AND ThE BOARD Of DIRECTORS
In accordance with the resolution of the Extraordinary General Meeting of Shareholders (“EGMS”) of Telkom dated
December 19, 2014, the composition of the Board of Commissioners and the Board of Directors of PT Telkom Indonesia
(Persero) Tbk is as follows:
Board of Commissioners
Hendri Saparini
Imam Apriyanto Putro
Hadiyanto
Dolfie Othniel Fredric Palit
Parikesit Suprapto
Johnny Swandi Sjam
Virano Gazi Nasution
Board of Directors
Alex J. Sinaga
Indra Utoyo
Muhammad Awaluddin
Honesti Basyir
Heri Sunaryadi
Abdus Somad Arief
Herdy Rosadi Harman
Dian Rachmawan
: President Commissioner
: Commissioner
: Commissioner
: Commissioner
: Independent Commissioner
: Independent Commissioner
: Independent Commissioner
: President Director
: Director
: Director
: Director
: Director
: Director
: Director
: Director
In accordance with the resolution of the Annual General Meeting of Shareholders (“AGMS”) of Telkom dated April 17,
2015, the composition of the Board of Commissioners and Board of Directors of PT Telkom Indonesia (Persero) Tbk has
been amended as follows:
Board of Commissioners
Hendri Saparini
Dolfie Othniel Fredric Palit
Hadiyanto
Margiyono Darsasumarja
Rinaldi Firmansyah
Parikesit Suprapto
: President Commissioner
: Commissioner
: Commissioner
: Commissioner
: Independent Commissioner
: Independent Commissioner
Pamiyati Pamela Johanna Waluyo
: Independent Commissioner
Board of Directors
Alex J. Sinaga
Heri Sunaryadi
Indra Utoyo
Muhammad Awaluddin
Honesti Basyir
Herdy Rosadi Harman
Abdus Somad Arief
Dian Rachmawan
: President Director
: Director
: Director
: Director
: Director
: Director
: Director
: Director
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o
t
c
e
r
i
D
f
o
d
r
a
o
B
TELKOM’S ORGANIZATIONAL STRUCTURE
In order to synchronize our organizational structure with our business character as well as with the dynamic business
challenges we face in 2015, we revised our organizational structure to achieve structure alignment with our business
portfolios. Our revised organizational structure reflects our organizational management categorized by product/busi-
ness portfolio (encompassing digital products and legacy product), customer portfolio (encompassing the consumer,
enterprise, wholesale and international segments), function and/or territory.
The following diagram sets forth our internal organizational structure as of December 31, 2015.
President Director
Director of Enterprise &
Business service (COO)
Director of Consumer
service (CRO)
Director of wholesale &
International service
Director of Network, IT &
solution
Director of Innovation &
strategic portofolio
Vp COO
supervision
Vp Consumer
product planning
Vp Enterprise
planning strategy
Vp Consumer
Relationship Management
Vp wholesale &
International
Development
Vp wholesale
& International
Voice service
Vp Infrastructure
strategy & Governance
Vp Corporate strategic
planning
Vp IT strategy &
Governance
Vp Innovation strategy
Vp Enterprise
Business Development
Vp Consumer Marketing &
sales
Vp wholesale &
International Network
service
Vp solution
EVp strategic
Investment
Vp Enterprise
parenting Operation
OVp Consumer service
supervision
Vp Infrastructure
Management
Vp sI
planning
Vp Enterprise
performance Integration
EGM Divisi Business
service
EGM Divisi Enterprise
service
EGM Divisi Government
service
Vp sI Execution
sVp synergy
Vp Integration &
portofolio
Management
EGM Divisi wholesale
service
EGM Divisi planning &
Deployment
EGM Divisi Digital service
EGM Divisi service solution
EGM Divisi service
Operation
sGM Information
system Center
EVp Telkom Regional I
EVp Telkom Regional II
EVp Telkom Regional III
EVp Telkom Regional IV
EVp Telkom Regional V
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT
Director of Finance
Director of Human
Capital Management
sVp Corporate
secretary
sVp Internal Audit
sVp program
Management Office
Vp Financial &
Logistic policy
Vp Human Capital
strategic Management
Vp Corporate
Communication
Vp Infrastructure &
Operations Audit
AVp pMO planning &
Design
Vp Management
Accounting
Vp Human Capital
Development
Vp Regulatory
Management
Vp support &
subsidiary Audit
AVp Monitoring
& Reporting
Vp Corporate Finance
Vp Human Capital
Organizational Effectiveness
Vp Corporate
Office support
Vp Enterprise
Management Audit
AVp Communications
& supporting
Vp Risk & process
Management
Vp Human Capital
Organizational Effectiveness
Vp Legal &
Compliance
CEO’s Office
Vp supply planning &
Control
Vp Telkom smart Office
Vp Investor Relation
Corporate Office
sGM Finance, Billing &
Collection
sGM Human Capital
Business patrner Center
sGM supply Center
sGM Telkom Corporate
university Center
sGM Assesment Center
Indonesia
Business Unit
sGM Community
Development Center
EVp Telkom Regional VI
EVp Telkom Regional VII
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES The following table sets forth the functions and authority of our directorates.
Directorate
function and Authority
Consumer Service Directorate (“CONS”)
The Enterprise and Business Service Directorate
(“EBIS”)
Focuses on the management of consumer product planning, consumer
relationship management, consumer marketing and sales, and consumer
service supervision, as well as the control of operational territories in all
seven Regional Divisions.
Focuses on the management of enterprise planning strategy, enterprise
business development, enterprise parenting operation, enterprise
performance integration, as well as the management of the Enterprise
Services Division, the Business Services Division and the Government
Services Division. The Director of Enterprise and Business Service also
performs the function of the Chief Operating Officer.
The Wholesale and International Services Directorate
(“WINS”)
Focuses on the management of the wholesale and international business
segment, as well as the operational control of the wholesale services division.
Directorate of Innovation and Strategic Portfolio (“ISP”) Focuses on the management of corporate strategic planning, the Strategic
Investment Department, the Synergy Department, innovation strategy and
the control of operational units under such Directorate, namely the Digital
Service Division.
Directorate of Network, IT & Solution (“NITS”)
The Finance Directorate (“KEU”)
The Human Capital Management Directorate (“HCM”)
Focuses on the management of infrastructure and infrastructure
strategy and governance, IT strategy and governance, solutions and
infrastructure management as well as control of the operational
units under such Directorate through the Planning and Deployment
Division, Service and Solution Divisions, Service Operation Division, and
Information System Center.
Focuses on the management of finances, namely corporate finance,
management accounting, investor relations, financial & logistics policy, risk
and process management, and the centralization of financial operations
through the finance, billing and collection center units, as well as the
operational control of the supply center unit responsible for procurements.
Focuses on the management of human resources, in terms of human
capital strategic management, human capital development, human capital
organizational effectiveness and the centralized operationalization of human
resources through the Human Capital Business Partner Center, as well as
the operational control of the Telkom Corporate University Center unit, the
Indonesia Assessment Center and the Community Development Center.
We have adopted a holding company approach to the management of our Group, which we believe will provide
productive flexibility throughout our business entities in accordance with the characteristics of each unit.
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT In the framework of the implementation of corporate management with holding company characteristics, then:
1.
The role of corporate office is focused on Corporate Level Strategy (directing strategy, portfolio strategy and
parenting strategy).
2. Parenting style is adapted to the characteristics and maturity level of the business entity.
3. Empowerment of business entities according to their characteristics.
In order to apply the parenting management mechanism to the whole portfolio of our Group, we have established
the Board of Executives (BoE), consisting of all of Telkom Directors and the chief executive officers of certain of our
business. The BoE serves as a parenting mechanism for our subsidiary companies by placing those companies in four
categories, namely the cellular business, the media business, the infrastructure business, and the international business.
The cellular business is headed by Telkomsel, the media business is headed Metra, the infrastructure business is headed
by TelkomInfra, while the international business is controlled by Telin.
Beginning 2016, we are also undertaking a transformation of our oversight or parenting system, from a formerly core
and adjacent product, into a customer facing unit/business segment-based system, which we refer to as CFUs, following
our implementation of the new customer or CFU-based parenting system for our Directorate of Enterprise Business &
Business Services (“EBIS”) as a pilot project in 2015. Beginning January 1, 2016, we have reorganized our 15 previous
portfolios (consisting of nine product portfolios and six customer portfolios), into six product portfolios, mapped onto
one or more five CFUs. We are in the process of continuing to reorganize internally to reflect our revised product
portfolio and CFU structure.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES BOARD Of COMMISSIONERS PROfILE
DR. hendri Saparini
(President Commissioner)
Personal
Born : Kebumen, June 16, 1964.
Age : 51 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
President Commissioner, appointed based on the result of Telkom
Extraordinary General Meeting of Shareholders (EGMS) on December
19, 2014.
Education
Bachelor of Arts in Economics from Gajah Mada University (1988), Master
in International Development Policy from Tsukuba University, Japan,
and a doctorate degree in International Political Economy from Tsukuba
University, Japan.
Career
Hendri Saparini was a Expert Staff of Minister of Cooperation and SME/
Head of Indonesian SME Development Agency, Economic Lecturer on
Magister Management Gajah Mada University, Magister Management
Faculty of Development Studies Bandung Institute of Technology,
Doctoral Program Economic Faculty UMS, Economic Consultant in several
financial institutions, Bank Indonesia, and international institution, as well
as Managing Director Centre of Reformation (CORE Indonesia).
Dolfie Othniel fredric Palit
(Commissioner)
Personal
Born : Kijang, Riau Islands, October 27, 1968.
Age
: 47 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
Commissioner, appointed by Telkom Extraordinary General Meeting of
Shareholders (EGMS) on December 19, 2014.
Education
Bandung Institute of Technology, 1995.
Career
Dolfie Othniel Fredric Palit has served as Executive Director at
Yayasan Bumi Indonesia (2001- 2003), Executive Director at the
Institute for Strategic Consultant (Strategic Planning) Research Policy
and Regional Autonomy - REKODE (2004 - 2009), as a member
of the House of Representatives (2009 - 2014), Member of Special
Committee Act of Prevention and Combating Money Laundering, Bank
Century Supervisory team Member, Member of Budget Committee of
the House of Representatives, and Member of the Special Committee
of the Law on BPJS.
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT hadiyanto (Commissioner)
Personal
Born : Ciamis, October 10, 1962.
Age : 53 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
Commissioner, appointed by Telkom Extraordinary General Meeting of
Shareholders (EGMS) on December 19, 2014.
Education
Bachelor of Law from the University of Padjajaran, Bandung, Master of Law
(LLM) from Harvard University Law School, US, and Doctorate degree in Law
from the University of Padjajaran, Bandung.
Career
Currently Hadiyanto also holds the position as the Director General of State
Wealth (Kekayaan Negara) at the Ministry of Finance of the Republic of
Indonesia. Previously, Hadiyanto had served as the Head of the Legal Affairs
Bureau of the Secretary General of the Department of Finance and the Alternate
Executive Director of World Bank. In the corporate environment, Hadiyanto
served as Chief Commissioner of PT Garuda Indonesia, Tbk (2007-2012) and
Chief Commissioner of PT Bank Ekspor Indonesia (2007-2009).
Margiyono Darsasumarja
(Commissioner)
Personal
Born : Klaten, September 14, 1976.
Age : 39 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
Commissioner, appointed based on Telkom Annual General Meeting of
Shareholders (AGMS) on April 17, 2015.
Education
Law degree from University of Indonesia (2008), Jakarta and Master
from Scholl of Law University of Leeds, England (2012).
Career
Media Development Manager, VHR Media, Lecturer of Bakrie University.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Rinaldi firmansyah
(Independent Commissioner)
Personal
Born : Tanjung Pinang, June 10, 1960.
Age
: 55 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
Independent Commissioner, appointed based on Telkom Annual General Meeting of
Shareholders (AGMS) on April 17, 2015.
Education
Bachelor in Engineer from Bandung Institute of Technology (1985), MBA from IPMI
(1988), Doctorate degree in Management from Padjajaran University (2014).
Career
Commissioner of PT. Indosat, Tbk (January 2015), Commissioner of PT. Elnusa, Tbk
(Mei 2014), Commissioner of PT. Bluebird, Tbk (September 2013), CEO of PT Telkom
Indonesia, Tbk (2007-2012), CFO of PT Telkom Indonesia, Tbk (2004-2007), CEO of PT
Bahana Securities (2001-2003).
Pamiyati Pamela Johanna Waluyo
(Independent Commissioner)
Personal
Born : Jakarta, June 20, 1958.
Age : 57 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
Independent Commissioner, appointed based on Telkom Annual General
Meeting of Shareholders (AGMS) on April 17, 2015.
Education
Master degree from University of Tech. Deflt, Netherland (1983).
Career
Corp.Marketing Director Obession Media Group (2014-2015), Assistance to
the Director of Sales & Marketing Metro TV (2006-2014), Corporate Public
Relation Metro TV& Media Group (2000-2006).
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT Parikesit Suprapto
(Independent Commissioner)
Personal
Born : Surabaya, August 8, 1951.
Age : 64 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
Independent Commissioner, appointed based on Telkom Extraordinary General
Meeting of Shareholders (EGMS) on December 19, 2014. Parikesit Suprapto served
as Telkom Commissioners since May 11, 2012.
Education
Bachelor in Corporate Economics from Sekolah Tinggi Manajemen Industri (1980),
Master in Economic Development from Indiana University, USA (1990), and
doctorate degree in Economic Development from Notre Dame University, Indiana,
USA (1995).
Career
Currently serving as commissioner of Indonesian Central Securities Depository.
Parikesit Suprapto served as Deputy for Services, the Ministry of SOEs (2010 -
2012), Deputy for Banking and Financing Industry, the Ministry of SOEs (2008
- 2010), and Advisor to the Minister of Cooperatives and SMEs Small Business
Sector (2006 - 2008). In the corporate environment, Parikesit Suprapto served
as Commissioner of PT Indosat Tbk (2011 - 2012) and Commissioner of PT Bank
Negara Indonesia (Persero) Tbk.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES BOARD Of DIRECTORS PROfILE
Alex J. Sinaga (President Director)
Personal
Born : Pematang Siantar, September 27, 1961.
Age : 54 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
President Director, appointed based on Telkom Extraordinary General
Meeting of Shareholders (EGMS) on December 19, 2014.
Education
Bachelor degree of Electrical Telecommunication Engineering of
Bandung Institute of Technology and Master of Telematics of the
University of Surrey, Guidford-England.
Career
Alex J. Sinaga previously served as President Director of Telkomsel
(2012-2014), President Director of PT Multimedia Nusantara (2002-
2017), Executive General Manager Enterprise Service Division (2005-
2007), Executive General Manager Fixed Wireless Networks Division
(2002-2005), Senior Manager Business Performance Regional II
Jakarta Division (2002), General Manager Telkom West Jakarta
(2000-2002), Senior Manager Telkom West Surabaya(1998-1999) and
General Manager Telkom Malang (1997-1998).
heri Sunaryadi (Director)
Personal
Born : Jember, June 26, 1965.
Age : 50 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
Director, appointed based on Telkom Extraordinary General Meeting
of Shareholders (EGMS) on December 19, 2014.
Education
Bachelor Degree Faculty of Agriculture from Bogor Agricultural
University (1987).
Career
Heri Sunaryadi previously was President Director of PT Kustodian
Sentral Efek Indonesia (2013 - 2014), the President Director of PT
Bahana Pembinaan Usaha Indonesia (2009 – 2013) and the President
Director Bahana Securities (2007-2009).
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT Indra Utoyo (Director)
Personal
Born : Bandung, February 17, 1962.
Age : 54 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia
Position and Appointment Basis
Director, appointed based on Telkom Extraordinary General Meeting
of Shareholders (EGMS) on December 19, 2014. Indra Utoyo served as
Director since February 28, 2007 and had served as Acting President
Director by virtue of the BOC No.201/SRT/DK/2014 dated October
31, 2014.
Education
Bachelor of Electrical Telecommunication Engineering from Bandung
Institute of Technology and Master Degree in Communication and
Signal Processing from Imperial College of Science, Technology and
Medicine, University of London, England.
Career
Indra Utoyo has served as Director of Innovation and Strategic Portfolio
since 2012, which previously was Director of IT Solutions & Supply
Telkom (2007-2012) and Senior General Manager of Information
System Center Telkom (2005-2007).
Muhammad Awaluddin (Director)
Personal
Born
Age
: Jakarta, January 15, 1968.
: 48 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
Director, appointed based on Telkom Extraordinary General Meeting
of Shareholders (EGMS) on December 19, 2014.
Education
Bachelor degree of Electrical Engineering from Sriwijaya University
(1990), Master of Business Administration from European University
Antwerp Belgium (1998).
Career
Muhammad Awaluddin has served as Director of Enterprise and
Business Service since 2012, which previously was the President
Director of PT Infomedia Nusantara (2010-2012). Executive General
Manager of the Access Division, Executive General Manager of Divre
I Sumatra (2007-2010) and Vice President of Public and Marketing
Communications (2005-2007).
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES honesti Basyir (Director)
Personal
Born
Age
: Padang, June 24, 1968.
: 47 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Appointment Basis
Director, appointed based on Telkom Extraordinary General Meeting
of Shareholders (EGMS) on December 19, 2014.
Education
Bachelor Degree of Industrial Engineering from Bandung Institute
of Technology (1992) and Master Degree of Corporate Finance from
Sekolah Tinggi Manajemen Bandung (2004).
Career
Honesti Basyir previously has served as Finance Director of Telkom
(2012 - 2014), Vice President of Strategic Business Development
Directorate of IT Solutions and Strategic Portfolio Telkom (2012). Vice
President Strategic Business Development, Strategic Investment and
Corporate Planning Telkom (2010-2012), Project Controller-1 Project
Management Office Telkom (2009-2010). Assistant Vice President
Business & Finance Analysis Telkom (2006-2009) and Project
Management Consultant Garuda Maintenance Facility (1992-1993).
herdy Rosadi harman (Director)
Personal
Born
Age
: Bandung, June 28, 1963.
: 52 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia
Position and Appointment Basis
Director, appointed based on Telkom Extraordinary General Meeting
of Shareholders (EGMS) on December 19, 2014.
Education
Bachelors Degree of Law from University of Padjadjaran, Bandung,
MBA from the Asian Institute of Management Philippines-Institute
Management Bandung/Telkom University, and Master of Law (LLM)
from American University, Washington DC, USA.
Career
Herdy Rosadi Harman previously served as the Director of Human
Capital Management Telkomsel (2012 - 2014), VP Regulatory
Management Telkom (2007-2012), Vice President of Legal &
Compliance Telkom (2006 - 2007) and General Manager Management
Support Telkom (2003-2006).
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT Abdus Somad Arief (Director)
Personal
Born
Age
: Sidoarjo, September 25, 1963.
: 52 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia
Position and Appointment Basis
Director, appointed based on Telkom Extraordinary General Meeting
of Shareholders (EGMS) on December 19, 2014.
Education
Bachelor degree of Electrical Engineering of Bandung Institute of
Technology and Master of Information and Technology Systems of
Bandung Institute of Technology.
Career
Abdus Somad Arief previously was Director of Network Telkomsel
(2012-2014), Executive General Manager - Enterprise Service Division
Telkom (2009 - 2012), Vice President of Business Development
Telkom (2008 - 2009) and Deputy Executive General Manager of the
Enterprise Service Division (2007 - 2008). Abdus Somad Arief also
been the President Commissioner of PT Pramindo Ikat Nusantara (2011
- 2012) and Commissioner of PT Infomedia Nusantara (2010 - 2011).
Dian Rachmawan (Director)
Personal
Born
Age
: Bangil, May 14, 1964.
: 51 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia
Position and Appointment Basis
Director, appointed based on Telkom Extraordinary General Meeting
of Shareholders (EGMS) on December 19, 2014.
Education
Bachelor of Electrical Engineering in Institut Teknologi Sepuluh
November and Master of Telecommunication Engineering of
University of Bradford, England.
Career
Dian Rachmawan previously was the CEO of PT Telekomunikasi
Indonesia International (Hong Kong) Limited (2011-2014), Director
of Business and Partnership Development of PT Telkom Indonesia
International (2007-2011), Executive General Manager Fixed Wireless
Network Division (2005-2007) and General Manager of Telkom
South Jakarta (2004-2005).
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES COMMITTEES PROfILE UNDER ThE BOARD Of
COMMISSIONERS
The Board of Commissioners, in carrying out its duties, are assisted by several committees under the coordination of
the Board of Commissioners, namely: the Audit Committee, the Nomination and Remuneration Committee (“KNR”) and
the Risk Planning Evaluation and Monitoring Committee (“KEMPR”).
1. ThE AUDIT COMMITTEE
The composition of the Audit Committee as established by the Board of Commissioners Decree No.10/KEP/
DK/2015 dated September 30, 2015 is as follows:
Membership
Name
Chair
Secretary
Members
Rinaldi Firmansyah (Independent Commissioner)
Tjatur Purwadi (Unaffiliated External Member)
Parikesit Suprapto (Independent Commissioner)
Dolfie Othniel Fredric Palit (Commissioner)
Tjatur Purwadi (Secretary/Member)
Personal
Born : Surabaya, January 28, 1956.
Age
: 60 years old.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Basis of Appointment
Board of Commissioners Decree No.10/KEP/DK/2015 dated September 30, 2015.
Education
Bachelor’s degree in Accounting from Gadjah Mada University and a Master’s degree in Management from
Padjadjaran University.
Career
Before being appointed as secretary of the Telkom Audit Committee, Tjatur Purwadi has worked at Telkom from
1979 to 2012. While working at Telkom, Tjatur Purwadi has held several strategic positions, where he served as Vice
President (“VP”) of Financial and Logistics Policy and Internal Audit Head. After retiring from Telkom, he has been
served as Director Assurance Team of the Tanudiredja, Wibisana & Partners/PwC.
To see the profile of the other Audit Committee members, please refer to “Telkom Indonesia Management – Profile
of the Board of Commissioners”.
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2. ThE NOMINATION AND REMUNERATION COMMITTEE
The membership composition of the Nomination and Remuneration Committee, in accordance with the Board of
Commissioners Decree No.13/KEP/DK/2015 dated December 28, 2015, is as follows::
Membership
Name
Chair/ Member
Parikesit Suprapto (Independent Commissioner)
Secretary
Members
Ario Guntoro (Secretary of the Board of Commissioners)
Hendri Saparini (President Commissioner)
Hadiyanto (Commissioner)
Dolfie Othniel Fredric Palit (Commissioner)
Margiyono Darsasumadja (Commissioner)
Rinaldi Firmansyah (Independent Commissioner)
Pamiyati Pamela Johanna Waluyo (Independent Commissioner)
Ario Guntoro (Secretary)
Personal
Born
Age
: Prabumulih, January 27, 1970.
: 46 years old.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Basis of Appointment
Board of Commissioners Decree No.10/KEP/DK/2013 dated October 4, 2013.
Education
Bachelor of Economics (SE).
Career
Ario Guntoro is a professional with an extensive experience in finance, investment and banking. After working in
the national private banking sector from 1994 to 1999 as a Corporate Officer and Brand Manager, Ario Guntoro
worked for the Indonesian Bank Restructuring Agency (“IBRA”) from 1999 to 2004, where his last position was
Assistant Vice President of the HIPA Division. In 2004, he served as a special advisor to PT PPA (Persero). Before
being appointed as Secretary, in 2004, he served as the Secretary of the Risk Planning Evaluation and Monitoring
Committee (KEMPR) of PT Telkom Indonesia (Persero) Tbk.
To see the profile of the other members of the Nomination & Remuneration Committee, please see “Telkom
Indonesia Management - Profile of the Board of Commissioners”.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 3. RISK PLANNING EVALUATION AND MONITORING COMMITTEE
The membership composition of the Risk Planning Evaluation and Monitoring Committee, in accordance with the
Board of Commissioners Decree No.07/KEP/DK/2015 dated May 12, 2015, is as follows:
Membership
Chair/Member
Members
Name
Hadiyanto (Commissioner)
Dolfie Othniel Fredric Palit (Commissioner)
Margiyono Darsasumadja (Commissioner)
Parikesit Suprapto (Independent Commissioner)
Pamiyati Pamela Johanna Waluyo (Independent Commissioner)
Rustanto Hadimartono
All members of the Risk Planning Evaluation and Monitoring Committee (except Hadiyanto, Dolfie Othniel Fredric
Palit, and Margiyono Darsasumadja) are external and independent members.
Rustanto hadimartono (Member)
Personal
Born: Klaten, July 8, 1959.
Age: 56 years old.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
Position and Basis of Appointment
Board of Commissioners Decree No.07/KEP/DK/2015 dated May 12, 2015.
Education
Bachelor’s degree in Law from Diponegoro University (1982), Master of Laws in International Legal Studies (LL.M.)
from the Washington College of Law - American University (1987) and Doctor of Law from Parahyangan Catholic
University (2011).
Career
Prior to joining the KEMPR Committee in the beginning of 2014, Rustanto Hadimartono worked as a civil servant
at the Investment Coordinating Board (1983-1992). He then moved to the private sector, working at Marathon
Petroleum Indonesia, Ltd. (1992), PT Rothmans of Pall Mall Indonesia (1992-1994), PT Anwar Sierad, Tbk (1994-
1997), PT Drassindo Persada Utama (1997-1998), PT Satelit Palapa Indonesia (Satelindo 1998-2003) and PT Indosat,
Tbk (2003-2009), respectively. In addition, since 1984 until now, he teaches at several private universities on the
subject of law and public policy.
To see the profile of the other members of the Risk Planning Evaluation and Monitoring Committee, please see
“Telkom Indonesia Management - Profile of the Board of Commissioners”.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES EXECUTIVES PROfILE
Position
Senior Vice President Corporate Secretary
Senior Vice President Program Management Office
Senior Vice President Internal Audit
Vice President Corporate Communication
Vice President Regulatory Management
Vice President Corporate Office Support
Vice President Legal and Compliance
Vice President Enterprise Management Audit
Vice President Infrastructure and Operations Audit
Vice President Support and Subsidiary Audit
Vice President Risk and Process Management
Vice President Investor Relation
Vice President Management Accounting
Vice President Corporate Finance
Vice President Financial and Logistic Policy
Project Director Proyek T – ISCM
Senior General Manager Finance, Billing and Collection Center
Senior General Manager Supply Center
Vice President HC Strategic Management
Vice President HC Development
Vice President HC Organizational Effectiveness
Vice President Telkom Smart Office
Senior General Manager HC Business Partner Center
Senior General Manager Telkom Corporate University Center
Senior General Manager Assessment Center Indonesia
Senior General Manager Community Development Center
Executive Vice President Strategic Investment
Senior Vice President Synergy
Vice President Corporate Strategic Planning
Vice President Innovation Strategy
Project Director Probis TV Video
Kapro CFU Transformation
Executive General Manager Digital Service Division
Project Director MILES
Project Director Probis ICT Public Transportation Service
Vice President Enterprise Business Development
Name
Afriwandi
Ikhsan
Harry Suseno Hadisoebroto
Arif Prabowo
Henry Christiadi
Hardi Purwanto
Tony Suwarjo
Heru Muara Sidik
Dani Ramdani
Budhi Santoso
Jajat Sutarjat
Andi Setiawan
Edi Witjara
Roby Roediyanto
Agus Hery Prasetyo
I Ketut Dody Wirawan
Martinus Wisnu Adji
Weriza
Dwi Heriyanto B.
Aris Hartoni
Djonet Hartono
Ardi Purwanto
Yul Martin
Danang Baskoro Dwinugroho
Teuku Zilmahram
Nur Hassim Haji Rusdi
Setyanto Hantoro
Achmad Sugiarto
Andy Revara
IGN. Wiseto Prasetyo Agung
Joddy Hernady
Saiful Hidajat
Arief Musta’in
Natal Iman Ginting
Suprayitno
Ilmianto
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74
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
75
PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT
Position
Vice President Enterprise Parenting Operation
Vice President Enterprise Performance Integration
Vice President COO Supervision
Vice President Enterprise Planning Strategy
Executive General Manager Business Service Division
Executive General Manager Government Service Division
Executive General Manager Enterprise Service Division
Vice President Consumer Product Planning
Vice President Consumer Marketing & Sales
Vice President Consumer Relationship Management
Operational Vice President Consumer Service Supervision
Executive Vice President Telkom Regional I
Executive Vice President Telkom Regional II
Executive Vice President Telkom Regional III
Executive Vice President Telkom Regional IV
Executive Vice President Telkom Regional V
Executive Vice President Telkom Regional VI
Executive Vice President Telkom Regional VII
Vice President Wholesale & International Development
Vice President Wholesale & International Voice Service
Vice President Wholesale & International Network Service
Executive General Manager Wholesale Service Division
Vice President Solution
Vice President Infrastructure Strategy & Governance
Vice President IT Strategy & Governance
Project Director Probis Turn Around
Executive General Manager Planning & Deployment Division
Executive General Manager Service Operation Division
Executive General Manager Service & Solution Division
Senior General Manager Information System Center
Name
Bagyo Nugroho
Joni Heri
Devi Alzy
Wisnu Haryadi
Yusron Hariyadi
Mohammad Salsabil
Siti Choiriana
Teni Agustini
Jemy
Agus Winarno
Sujito
Teuku Muda Nanta
Prasabri Pesti
Suparwiyanto
Rosyidul Umam Aly
Iskriono Windiarjanto
Joko Raharjo
Mohammad Firdaus
Mohamad Ramzy
Erik Orbandi
Budi Satria Dharma Purba
Faizal Rochmad Djoemadi
Admiral Dasrin
Pramasaleh Hario Utomo
Alip Priyono
Suhartono
Revolin Simulsyah
Nanang Hendarno
Imam Santoso
Halim Sulasmono
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74
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
75
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
TELKOM BUSINESS GROUP
To perform a business portfolio according to the principles of good corporate governance and best practices, as well
as with regard to the provisions of legislation in force, Telkom Group formed a Board of Executive (“BOE”), facilitating
parenting mechanism towards subsidiaries. Subsidiaries are divided into category, the cellular business coordinated
by Telkomsel, media coordinated by Telkom Metra, infrastructure coordinated by Telkom Infra, and international
coordinated by Telin.
Government
52,6 %
Mobile Business T
Multimedia Business IME
76
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
77
PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT TELKOM BUSINESS GROUP STRUCTURE
Business group structure and composition of the Telkom Group’s shares are presented in the following diagram.
public
47,4 %
International Business T
Infrastructure Business T
Singapore
Hong Kong
Timor Leste
Malaysia
Myanmar
Kingdom
of Saudi Arabia
76
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
77
Note:
T : Telecommunication
IME : Information, Media & Edutainment
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
SUBSIDIARIES AND ASSOCIATED COMPANIES
As of December 31, 2015 and 2014, the Company has consolidated the financial statements of a subsidiary owned
directly or indirectly, as follows:
Direct subsidiaries
Percentage
of Ownership
Interest
Nature of Business
Operational
Stastus
Assets
Description
65%
Telecommunication
Operate
84,086
100%
Telecommunication
Operate
9,341
Companies
PT Telekomunikasi
Selular (“Telkomsel”),
Jakarta, Indonesia
PT Dayamitra
Telekomunikasi
(“Mitratel”),
Jakarta, Indonesia
Telkomsel, was established on May 26,
1995, provides telecommunications and
mobile phone service. Using the Global
System for Mobile Communication
technology (GSM).
Mitratel provides fixed line telephone
services, supply of telecommunications
facilities and infrastructure and
telecommunications services. Acquired
on May 17, 2001, Mitratel transformed it
self by entering the telecommunications
infrastructure supply business, which
includes supplying telecommunications
towers to meet the BTS installment
needs of telecommunications operators
all over Indonesia.
On October 9, 2014, the Company
signed a Conditional Shares Exchange
Agreement with PT Tower Bersama
Infrastructure Tbk (“TBI”) to exchange
its 49% ownership in Mitratel for
5.7% ownership in TBI. Regarding
the Conditional Shares Exchange
Agreement (“CSEA”) with PT Tower
Bersama Infrastructure Tbk. (“TBI”),
the transaction was terminated by the
Company due to nonfulfillment of the
terms stated in the CSEA.
Metra, founded on May 9, 2003,
managing our multimedia business.
Metra provides the development service,
construction, and network maintenance
as well as multimedia services (data
communication system services, portal
services, and online transaction services).
Previously known as PT Ariawest
International, Telin was acquired on
July 31, 2003 and is a wholly owned
subsidiary of Telkom. Currently, Telin
has obtained the fixed closed network
(“Jartaptup”) license and Network
Access Provider license. Telin provides
network services and international
telecommunication services, as well as
international business.
Telkom Akses was established on
November 26, 2012. It commercially
operate on February 2013.
PT Multimedia
Nusantara
(“Metra”),
Jakarta
PT Telekomunikasi
Indonesia International
(“Telin” or “TII”),
Jakarta, Indonesia
100%
Telecommunications
networks and
multimedia services
Operate
8,563
100%
Telecommunication
Operate
5,604
PT Telkom Akses
(“Telkom Akses”),
Jakarta, Indonesia
100%
Construction,
services and trade in
telecommunications
Operate
3,696
78
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
79
PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT
Companies
PT Graha Sarana Duta
(“Telkom Property”),
Jakarta, Indonesia
Percentage
of Ownership
Interest
99.99%
100%
100%
100%
60%
PT PINS Indonesia
(“PINS”),
Jakarta, Indonesia
PT Infrastruktur
Telekomunikasi
Indonesia (“Telkom
Infratel”),
Jakarta, Indonesia
PT Patra
Telekomunikasi
Indonesia
(“Patrakom”),
Jakarta, Indonesia
PT Napsindo Primatel
Internasional
(“Napsindo”), Jakarta,
Indonesia
Indirect subsidiaries
Companies
Percentage
of Ownership
Interest
PT Sigma Cipta
Caraka (“Sigma”),
Tangerang, Indonesia
100%
through
Metra
PT Infomedia
Nusantara
(“Infomedia”),
Jakarta, Indonesia
100%
(including
through 49%
ownership
of the
Company)
Nature of Business
Operational
Stastus
Assets
Description
Office leasing
and building
management,
maintenance service,
civil consultant, and
developer.
Services and
telecommunications
development
Telecommunication
development service
Services of satellite
communication
systems, related
services and facilities
for companies
engaged in the oil
industry
Telecommunication
– provides Network
Access Point (“NAP”)
Voice Over Data
(“VOD”) and other
related services
Operate
3.581
Acquired on April 25, 2001, Telkom
Propertyoperates throughout Indonesia
and manages buildings owned by us and
third parties.
Operate
2.960
Operate
647
PINS was originally established to
operate our KSO in Sumatra and was
acquired on August 15, 2002.
On January 16, 2014,
The Company established a subsidiary
with the name of PT Infrastructure
Telecommunications Indonesia.
Operate
472
Patrakom was established on September
28, 1995. On November 25 and 29,
2013, the Company acquired additional
interest of 40% and 20% respectively of
Patrakom.
Ceased
operation
5
Napsindo was established on December
29, 1998, Napsindo ceased operation as
of January 13, 2006.
Nature of Business Operational
Assets
Description
Status
Operate
3,587
Operate
1,622
Informatics
technology service –
implementation and
integration system,
outsourcing, and
license & software
maintenance
Data and
information
services - providing
telecommunications
information
services and
other information
services in print and
electronic media,
and call center
services
Sigma was established on May 1,
1987 with a focus on provides IT and
solutions service.
Infomedia was acquired on September
22, 1999 to organize KSO in Sumatra.
Infomedia has transformed from
focusing on 3 pillars of business
(directory services, contact center
services, and content services) focus
on Business Process Outsourcing and
Digital Media & Rich Content service.
Telin Singapore was established on
December 6, 2007, pursuant to the
laws of Singapore. Telin Singapore
is a wholly owned subsidiary of TII.
The Company has obtained Facility
Based Operator License. Currently, it
provides wholesale voice, wholesale
data and Managed Service.
Telekomunikasi
Indonesia
International Pte. Ltd.,
Singapore
100%
through Telin
Telecommunication
Operate
1,618
78
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
79
PT Telkom
Landmark Tower
(“TLT”), Jakarta
55% through
Telkom
Property
Property
management and
developer service.
Operate
1,245
Telkom Property established TLT with
Yakes Telkom on December 27, 2011.
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
Percentage
of Ownership
Interest
100% through
Telin
Companies
Telekomunikasi
Indonesia
International (TL) S.
A. (“Telin Timor Leste
”), Dili
Nature of Business Operational
Assets
Description
Status
Telecommunication
Operate
854
PT Metra Digital
Media (“MD Media”),
Jakarta
99.99%
through
Metra
Information
telecommunication
service
Operate
618
PT finnet Indonesia
(“finnet”),
Jakarta
60% through
Metra
Information
technology services
Operate
513
100% through
Telin
Telecommunication
Operate
326
100% through
Telin
Telecommunication
Operate
171
Telekomunikasi
Indonesia
International (hong
Kong)
Limited. (“Telin hong
Kong),
hong Kong
Telekomunikasi
Indonesia
International Pty Ltd.,
(“Telkom Australia”),
Melbourne, Australia
PT Nusantara Sukses
Investasi (“NSI”),
Jakarta, Indonesia
99.99%
through
Telkom
Property
Service and Trading
Operate
165
PT Administrasi
Medika (“Ad Medika”),
Jakarta
75% through
Metra
Administration and
insurance/health
services
Operate
160
PT Graha Yasa Selaras
(“GYS”),
Jakarta, Indonesia
PT Metra Plasa
(“Metra Plasa”),
Jakarta, Indonesia
51% through
Telkom
Property
60% through
Metra
Tourism service
Operate
160
Portal service
Operate
85
Telin Timor Leste was a subsidiary
of Telin Indonesia, established on
September 11, 2012. Telin Timor Leste
has obtained radio spectrum and
general registration certificate license.
The service currently provided Fixed
Telephone Connections; Mobile
Connections; Internet Connections;
Traffic-Fixed Line; Traffic-Mobile
MD Media was established on January
22, 2013.
Finnet was established on October 31,
2005, as provider of IT infrastructure,
applications, and content for
information systems and financial
transactions for the banking and
financial services industries.
Telin Hong Kong was established in
Hong Kong on December 8, 2010 a
wholly owned subsidiary of TII. Telin
Hong Kong obtained Unified Carrier
License on March 1, 2011, Service
Based Operator for MVNO on July 27,
2011 and License for Operating Money
Service on July 18, 2012. Currently, it
provides wholesale voice, wholesale
data and retail mobile services. The
MVNO service is provided under the
brand Kartu As 2in1.
Telkom Australia is a subsidiary
owned exclusively by Telin
Indonesia. Established on January
14, 2013 by running Business Process
Outsourcing (BPO), Information
Technology Outsourcing (ITO), and
Telecomunication Services.
NSI was established on August 27,
2014
Ad Medika was established on
February 25, 2010, provides online
claim service between the hospitals
and health insurance companies.
Telkom Propertyfounded GYS together
with Yakes Telkom on February 7, 2012
focused on hospitality services.
Metra Plasa was established on April
9, 2012
80
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
81
PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT
Companies
PT Metranet
(“Metranet”),
Jakarta
Telekomunikasi
Indonesia
International (USA)
Inc., Los Angeles, USA
PT Sarana Usaha
Sejahtera Insanpalapa
(”TelkoMedika”)
Jakarta, Indonesia
PT Pojok Celebes
Mandiri (“PCM”),
Jakarta, Indonesia
Percentage
of Ownership
Interest
99.99%
ownership by
Metra
Nature of Business Operational
Assets
Description
Status
Multimedia portal
service
Operate
66
Metranet was establish on April 17,
2009.
100% through
Telin
Telecommunication
and IT
Operate
52
Telekomunikasi Indonesia International
(USA) Inc. is a subsidiary that entirely
owned by Telin Indonesia. Established
on December 11, 2013.
75% through
Metra
Health service, a
pharmacy, and
laboratory, etc.
Operate
49
TelkoMedika was acquired on
November 30, 2015
51% through
Metra
Travel agent/bureau
service
Operate
18
PCM was established on Agustus
16, 2013. On August 30, 2013, Metra
changed its ownership in pointer
become 51%.
SMI was established on March 25,
2013.
Operate
13
Operate
4
MDI previously PT Metra Media, was
established on January 29, 2013
Trade services and
telecommunications
network, satellite,
and multimedia
tools
Trading and/
or providing
service related
to information
and technology,
multimedia,
entertainment, and
investment
PT Satelit Multimedia
Indonesia (“SMI”),
Jakarta, Indonesia
99.99%
through
Metra
PT Metra Digital
Investama (“MDI”),
Jakarta, Indonesia
99.99%
through
Metra
PT Metra TV (“Metra
TV”), Jakarta,
Indonesia
PT Nusantara Sukses
Sarana (“NSS”),
Jakarta, Indonesia
PT Nusantara Sukses
Realiti (“NSR”),
Jakarta, Indonesia
99.83%
through
Metra
99.99%
through
Telkom
Property
99.99%
through
Telkom
Property
Broadcasting
subscription service
Operate
Building
management and
hotel services
Not yet
operating
Service and Trading
Not yet
operating
-
-
-
Metra TV was established on January
8, 2013.
NSS was established on August 27,
2014
NSR was established on August 27,
2014
80
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
81
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
EMPLOYEE NUMBERS AND COMPOSITION
Employee profile based on number as of December 31,
Employee
Numbers
Composition changes to the previous
year (%)
Telkom Group
2015
2014
2013
2012
2011
Telkom
2015
2014
2013
2012
2011
Subsidiaries
2015
2014
2013
2012
2011
24,785
25,284
25,011
25,683
26,023
16,097
17,279
17,881
19,185
19,780
8,688
8,005
7,130
6,498
6,243
(2.0)
1.1
(2.6)
(1.3)
-
(6.8)
(3.4)
(6.8)
(3.0)
-
8.5
12.3
9.7
4.1
-
Employee numbers based on gender as of December 31,
Total
Employees
(people)
Male
Female
Number (people)
Percentage (%)
Number (people)
Percentage (%)
Telkom Group
2015
2014
2013
Telkom
2015
2014
2013
Subsidiaries
2015
2014
2013
24,785
25,284
25,011
16,097
17,279
17,881
8,688
8,005
7,130
19,312
19,915
19,866
12,935
14,091
14,662
6,377
5,824
5,204
77.9
78.8
79.4
80.4
81.5
82.0
73.4
72.8
73.0
5,473
5,369
5,145
3,162
3,188
3,219
2,311
2,181
1,926
22.1
21.2
20.6
19.6
18.5
18.0
26.6
27.2
27.0
82
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
83
PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT
RELATIONShIP WITh GOVERNMENT
The Government is our majority and controlling shareholder. It is also our regulator as it adopts, administers and
enforces relevant laws that regulate telecommunications sector, sets tariffs and issues licenses. It is also one of our
customers and one of our lenders.
As used in this section, the term “Government” includes the Government of Indonesia and its ministries, directly-owned
government departments and agencies, but excludes SOEs.
The Government as Shareholder
The Government is our majority and controlling shareholder and owns 52.55% of our common stock as of December
31, 2015. Its ownership of the Series A Dwiwarna share gives it special voting and veto rights. Under the relevant laws,
the “ownership” of our common stock and the single outstanding Series A Dwiwarna share is vested in the Ministry
of Finance (“MoF”). In turn, and under the authority of the MoF, the Minister of State-Owned Enterprise (“MSOE”)
exercises the rights vested in these securities as our “controlling shareholder.”
As our majority shareholder and controlling shareholder, the Government has an interest in our performance, both in
terms of the service we provide to the nation and our ability to operate on a commercial basis. The material rights and
restrictions that apply to our common stock also apply to the Series A Dwiwarna share, except that the Government
may not transfer the Series A Dwiwarna share, and has special right with regard to: (1) the nomination, appointment and
removal of our Directors; (2) the nomination, appointment and removal of our Commissioners; (3) the issuance of new
shares and (4) any amendments to our Articles of Association, including with respect to actions to merge or dissolve
our Company, increase or reduce our authorized capital, or reduce our subscribed capital.
The Government as Regulator
The Government regulates the telecommunications sector through the MoCI. The MoCI has the authority to issue
regulations that implement laws, which are typically broad in scope. Through such decrees the MoCI defines the
structure of the industry, determines tariff formulas, establishes our USO, and otherwise controls many factors that
could influence our competitive position, operations and financial position.
We are required to obtain a license from the DGPT for each type of service offered, including licenses for the frequencies
we use (as allocated by the MoCI). We and other operators are required to pay frequency usage fees. Telkomsel also
holds licenses issued by the MoCI (some of which were previously issued by the Minister of Communications) for
the provision of cellular services, and from the Indonesian Investment Coordinating Board in relation to Telkomsel’s
investments for the development of cellular phone services with national coverage, including the expansion of network
coverage. The Government, through the MoCI as regulator, has the authority to issue new licenses for the establishment
of new joint ventures and other new arrangements, particularly in telecommunications.
The Government as Lender
In July 1994, the Government arranged a facility under which certain foreign institutions provided us with a two-
step loan for certain expenditures (the “sub-loan borrowings”). The sub-loan borrowings were made through the
Government and are guaranteed by it. As of December 31, 2015, we had a total of Rp1,520 billion, or US$110 million,
in such outstanding two-step loans, including current maturities. We are required to pay the Government interest and
repay the principal, which the Government then remits to the respective lenders. As of December 31, 2015, 76.0% of
such sub-loan borrowings were denominated in foreign currencies, with the remaining 24.0% denominated in Rupiah.
In 2015, the annual interest rates charged 8.5% on loans repayable in Rupiah, 4.0% on those denominated in US Dollar
and 3.1% for those denominated in Japanese Yen.
82
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
83
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES The Government as Customer
A number of ministries and government agencies utilize our services as direct commercial customers. No services
are provided for free or on an in-kind basis. We deal with these departments and agencies as separate customers.
In 2015, the amount of revenues from Government departments and agencies was Rp1,856 billion, which was
approximately 1.81% of our consolidated revenues and did not constitute a material part of our revenues. The
Government departments and agencies are treated for tariff purposes with respect to connection charges and
monthly charges as “residential”, which tariffs are lower than the business service rates. This does not apply to the
tariffs for local, long distance and IDD calls.
It is our policy not to enter into any transactions with affiliates unless the terms are no less favorable to us than they
would be with a third party. The MSOE has advised us that it would not cause us to enter into transactions with other
entities under its control unless the terms were consistent with our policy as referred to above.
Pursuant to OJK regulations, because we are listed on the IDX, any transaction where there is an inherent conflict
of interest (as defined below) with another IDX-listed company must be approved by majority of the holders of our
common stock who do not have a conflict of interest in the proposed transaction, unless such conflict of interest
existed before listing and was fully disclosed in the offering documents.
STOCK OVERVIEW AND OBLIGATION
sHAREHOLDER COMpOsITION
The authorized capital of the Company consists of 1 stock of Series A Dwiwarna, and 399,999,999,999 Series B stocks
(ordinary stocks). The authorized issued and fully paid capital of 100,799,996,400, consisting of 1 stock of Series A
Dwiwarna and 100,799,996,399 Series B stocks. 1 stock of Series A Dwiwarna belongs to Government of the Republic
of Indonesia (“Government”).
Composition of Telkom Shareholders as of March 21, 2016
Government
Public
Subtotal (Capital issued and fully paid)
Treasury Stock
Total
Series A
Dwiwarna
Share
Series B Shares (Common
Stock)
Percentage of
Ownership
1
1
1
51,602,353,559
46,595,863,040
98,198,216,599
2,601,779,800
52.55
47.45
100.00
-
100,799,996,399
100.00
Composition of Telkom shareholders per March 21, 2016 is as follows:
1. Shareholders with Ownership More Than 5% (Main/Controlling Shareholder)
Title of Class
Series A Dwiwarna Share
Series B Shares (Common Stock)
Person or Group
Government
Government
Number of Shares
1
51,602,353,559
Percentage of Ownership
-
52.55
84
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
85
PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT
2. Ownership of Stocks by Directors and Commissioners
On March 21, 2016, none of our Directors or Commissioners who have more than 1.0% of our stocks.
Commissioners or Directors
Number of Shares
Percentage of Ownership
Commissioners
Hendri Saparini
Hadiyanto
Dolfie Othniel Fredric Palit
Directors
Alex J Sinaga
Indra Utoyo
Honesti Basyir
Muhammad Awaluddin
Heri Sunaryadi
Abdus Somad Arief
Herdy Rosadi Harman
Dian Rachmawan
Total
18,982
519,640
17,084
42,723
1,182,295
1,155,295
1,154,755
37,965
37,965
37,663
98,505
4,302,872
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
3. Shareholders with Less than 5% Ownership
Shareholders with less than 5% ownership as of March 21, 2016.
Group
Number of Shares
Percentage of Ownership
Foreign
Local
Business Entities
Individuals
Business Entities
Individuals
Total
38,302,801,269
13,581,900
Companies
2,405,353,212
Mutual Funds
2,795,943,032
Insurance
Companies
Pension Funds
Others Business
Entities
2,034,031,450
589,183,150
73,004,490
381,964,537
46,595,863,040
39.01
0.01
2.45
2.85
2.07
0.60
0.07
0.39
47.45
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4. Proportion of Common Stock held in Indonesia and Abroad
As of March 21, 2016, we had 38,727 common stock shareholders, including the Government. This total includes
39,304,112,969 common stock shares owned by 2,095 shareholders outside Indonesia. As of the same date, there were
91 ADS shareholders who owned 44,381,083 ADS (1 ADS is equivalent to 200 common stock shares).
5. List of the 20 Biggest Public Shareholders
The following was our twentieth biggest of public shareholders until March 21, 2016.
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Shareholder
Ownership (%)
JP Morgan Chase Bank Na Re Non-Treaty Clients
GIC S/A Government Of Singapore
BPJS Ketenagakerjaan-Jht
BNYM Sa/Nv As Cust Of Employees Provident Fd Board
BBH Boston S/A Vangrd Emg Mkts Stk Infd
JPMCB-Virtus Emerging Markets Opportunities Fund
Pt. Prudential Life Assurance
The Northern Trust Co S/A Saudi Arabian Monetary Agency
JPMCB-Vanguard Total Interntnl Stock Index Fund
HSBC Bank Plc S/A Saudi Arabian Monetary Agency
BBH Boston S/A Matthews Pacific Tiger Fund
Citibank New York S/A Government Of Norway
RBC Isb S/A Vontobel Fund-Emerging Markets Equity
JPMCB-Stichting Depositary Apg Eme Mrkt Eq Pool
Reksa Dana Schroder Dana Prestasi Plus
JPMCB-Europacific Growth Fund
SSB 1ba9 Acf Msci Equity Index Fund B-Indonesia
Pictet And Cie (Europe) S.A., Pictet Global Selection Fund-Global Utilities
Equity Fund
SSB Obih S/A Ishares Msci Emerging Markets Etf
HSBC Bk Plc Re Agus Fund Manager S/A Abu Dhabi Investment Authority
1.25
1.13
0.94
0.79
0.77
0.76
0.73
0.54
0.52
0.47
0.44
0.44
0.43
0.40
0.38
0.36
0.35
0.34
0.31
0.28
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT ChRONOLOGY Of STOCK ISSUED
Date
Corporate Actions
Share Ownership Composition
Government of the Republic
Indonesia
%
Publik
%
11/13/1995
Pre Initial Public Offering ("Pre-IPO")
8,400,000,000
100.0
-
Sale of Government's shares
(933,334,000)
New shares issued by Telkom
-
-
-
933,334,000
933,333,000
-
-
-
Share Ownership Composition
7,466,666,000
80.0
1,866,667,000
20.0
12/11/1996
Block Sale of Government's shares
(388,000,000)
-
388,000,000
-
Share Ownership Composition
7,078,666,000
75.8
2,254,667,000
24.2
05/15/1997
Distribution of incentive shares by the
Government to public shareholders
(2,670,300)
-
2,670,300
-
Share Ownership Composition
7,075,995,700
75.8
2,257,337,300
24.2
5/7/1999
Block Sale of Government's shares
(898,000,000)
-
898,000,000
-
Share Ownership Composition
6,177,995,700
66.2
3,155,337,300
33.8
8/2/1999
Distribution of bonus shares (emission)
(every 50 shares acquire 4 shares)
494,239,656
-
252,426,984
-
Share Ownership Composition
6,672,235,356
66.2
3,407,764,284
33.8
12/7/2001
Block Sale of Government's shares
(1,200,000,000)
-
1,200,000,000
-
Share Ownership Composition
5,472,235,356
54.3
4,607,764,284
45.7
07/16/2002
Block Sale of Government's shares
(312,000,000)
-
312,000,000
-
Share Ownership Composition
10/1/2004
Stock Split (1:2)
5,160,235,356
10,320,470,712
51.2
51.2
4,919,764,284
48.8
9,839,528,568
48.8
12/21/2005
Share repurchase program (I)1
-
-
(211,290,500)
-
Share Ownership Composition
10,320,470,712
51.7
9,628,238,068
48.3
06/29/2007
Share repurchase program (II)2
-
-
(215,000,000)
-
Share Ownership Composition
10,320,470,712
52.3
9,413,238,068
47.7
20/06/2008
Share repurchase program (III)3
-
-
(64,284,000)
-
Share Ownership Composition
10,320,470,712
52.5
9,348,954,068
47.5
05/19/2011
Share repurchase program (IV)4
-
-
(520,355,960)
-
Share Ownership Composition
10,320,470,712
53.9
8,828,598,108
46.1
06/14/2013
Transferred a portion of Share
repurchase program III to employees
through ESOP Program
-
-
59,811,400
0.3
Share Ownership Composition
10,320,470,712
53.7
8,888,409,508
46.3
07/30/2013
Transferred share repurchase program I
by private placement
-
-
211,290,500
-
Share Ownership Composition
10,320,470,712
53.1
9,099,700,008
46.9
9/2/2013
Stock Split (1:5)
51,602,353,560
53.1
45,498,500,040
46.9
06/13/2014
Transferred share repurchase program I
by private placement
-
-
1,075,000,000
-
Share Ownership Composition
51,602,353,560
52.6
46,573,500,040
47.4
12/21/2015
Transferred share repurchase program
III by private placement
-
-
22,363,000
-
Share Ownership Composition
51,602,353,560
52.5
46,595,863,040
47.5
1) The first share repurchase program started on December 21, 2005 (the date of the Extraordinary General Meeting of Shareholders at which the program
was approved) and ended in June 2007.
2) The second share repurchase program started on June 29, 2007 (the date of the Extraordinary General Meeting of Shareholders at which the program was
approved) and ended in June 2008.
3) The third share repurchase program started on June 20, 2008 (the date of the Extraordinary General Meeting of Shareholders at which the program was
approved) and ended in December 2009.
4) The fourth share repurchase program started on May 19, 2011 (the date of the Annual General Meeting of Shareholders at which the program was approved)
and ended in November 2012.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
1. Employee Stock Ownership Program
The Employee Stock Ownership Program (“ESOP”) is an employee-owner scheme that provides our employee with
an ownership interest in our Company. At our initial public offering on November 14, 1995, a total of 116,666,475
shares were issued to 43,218 employees. On June 14, 2013, the Company transferred a portion of the treasury stock
to its employees as part of the 2012 annual incentives. The 59,811,400 (equal to 299,057,000 shares after stock
split) treasury stock transferred to 24,993 employees which had a total fair value of Rp661 billion. As of March 21,
2016, 110,256,210 of our shares were owned by 14,373 of our employees and our retirees. In 2014 and 2015, we did
not conduct the ESOP.
2. Purchases of Equity Securities by The Issuer and Affiliated Purchasers
share
Accordance
purchase
Total Number
Average price
use or
Total Number
use/
use/
Buy
Back
program
with
period
of shares
paid per share
Diversion
of shares
Diversion
Diversion
purchased
in Rp
use/Diversion
price in Rp
Date
SBB I
EGMS
December 21,
1,056,452,500
1,731
Private
1,056,452,500
2,280
July 30,
December
2005 - June
21, 2005
20, 2007
Placement
2013
SBB II
AGMS June
June 29,
1,832
Private
2,405
June 13,
29, 2007
2007 -
1,075,000,000
Placement
1,075,000,000
2014
December
28, 2008
SBB III
AGMS June
June 20,
321,420,000
1,448
ESOP
299,057,000
2,143
April 19,
20, 2008
2008 -
December
20, 2009
2013
Block
22,363,000
3,060
December
trade and
crossing
21, 2015
SBB IV
AGMS May
May 19, 2011
2,601,779,800
1,461
-
-
-
-
19, 2011
- November
20, 2012
As of December 31, 2015, our treasury stock balance is 2,601,779,800 common stock shares, equivalent to 2.6% of
our issued and outstanding common stock which comprise of Share Buyback Phase IV.
The nominal value of the has considered the results of the stock split ratio 1:5, which became effective September
2, 2013.
See Note 24 to our Consolidated Financial Statement.
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ChRONOLOGY Of OThER SECURITIES
Chronology of Bonds
The Company issued bonds worth Rp1,000 billion at July 16, 2002, at a nominal price for a period of five years. These
bonds bear fixed interest of 17% per annum, payable quarterly since October 16, 2002. The bonds are traded on the
Surabaya Stock Exchange with maturity date on July 16, 2007. The trustee of the bonds is BRI, which since January 17,
2006 effectively replaces BNI. PT Kustodian Sentral Efek act as custodian. The Company has made the settlement of
the debt bonds on July 16, 2007.
We issued the second Rupiah bonds on June 25, 2010, respectively Rp1,005 billion for Series A with a term of five years
and Rp1,995 billion for Series B with a period of ten years. The issuance of bonds were listed on the Indonesia Stock
Exchange with the bond underwriters PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas. The
trustees are PT CIMB Niaga Tbk. Telkom’s Bond II Serie A already matured and were repaid on July 6, 2015.
On June 16, 2015, the Company issued Continuous Bonds I Telkom Phase I 2015, with a nominal amount Rp2,200 billion
for Series A, a seven-year period, Rp2,100 billion for Series B, a ten-year period, Rp1,200 billion for Series C, a fifteen-
year period and Rp1,500 billion for Series D, a thirty-year period, respectively. The issuance of bonds were listed on the
Indonesia Stock Exchange with the bond underwriters PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri
Sekuritas. The trustees are PT CIMB Niaga Tbk.
PT Pemeringkat Efek Indonesia (Pefindo) on March 10, 2016, provides idAAA bond rating (stable outlook) on Telkom’s
Bond I 2015 and Telkom’s Bond II Serie B 2010 for period of March 8, 2015 to March 1, 2017.
CAPITAL MARKET SUPPORTING PROfESSIONAL
Address
Service
Assignment Period
Capital Market
Supporting Professional
External Auditor KAP Purwantono,
Sungkoro & Surja
(a member firm of Ernst
& Young Global Limited)
Bursa Efek Jakarta
Building Tower 2, 7th
Floor
Jalan Jenderal
Sudirman Kav. 52-53
Jakarta - 12100
Conducted
Integrated Audit
of PT Telkom
Indonesia (Persero)
Tbk (“Telkom”)
and General Audit
over the financial
statement of
subsidiary.
The issuance of
Consent Letter.
Acts as Custodian
of Telkom common
stocks which being
traded in Indonesia
Stock Exchange.
2015, 2014, 2013,2012
Since IPO Telkom
1995
2010
2015
Represents
the interest of
Bondholders with the
Company for bonds
II Telkom.
Represents
the interest of
Bondholders with
the COmpany for
bonds I Telkom.
Administration
Securities Bureau
PT Datindo
Entrycom
Wisma Sudirman
Jl.Jendral Sudirman
Kav 34-35 Jakarta -
10220
Trustee
PT Bank CIMB Niaga Tbk. Graha Niaga, 20th
PT Bank Permata Tbk.
Floor
Jl. Jend. Sudirman
Kav. 58
Jakarta - 12190
WTC II Building
28th Floor Jl. Jend.
Sudirman Kav. 29-31
Jakarta 12920
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Capital Market
Supporting Professional
Central
Custodian
PT Kustodian Sentral
Efek Indonesia
Address
Service
Assignment Period
Bursa Efek Jakarta
Tower 1 Building, 5th
Floor
Jl. Jend Sudirman
Kav 52-53
Jakarta - 12190
− Provide central
Since 1995
custodian
service and
stock transaction
settlement at IDX.
− Storage service
and settlement
for securities
transaction,
distribution of
corporate action
result.
Provide rating over
credit risk for Telkom
bond issuance.
2012, 2013, 2014,
2015
Since 1995
Since 2012
Acts as ADS stock
Custodian which
being traded at
NYSE.
Authorized
representative in
the United States in
connection with the
Securities pursuant
to the requirements
of the Act.
Rating Agency
PT Pemeringkat Efek
Indonesia
ADS Custodian
Bank
The Bank of New York
Mellon
Depositary Receipts
Puglisi and Associates
Authorized
Agent For
Services In The
United States Of
America
Panin Tower Senayan
City, 17th Floor
Jl. Asia Afrika Lot. 19
Jakarta - 10270
101 Barclay Street,
New York
Amerika Serikat -
10286
850 Library Ave #
204, Newark
Amerika Serikat -
19711
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT CAPITAL MARKET TRADING MEChANISM AND TELKOM ADS
Our common stock is listed and traded on the IDX. Our ADSs are also listed and traded on the NYSE and the LSE
as ADSs, where one ADS represents 200 shares of Common Stock.
ThE INDONESIAN STOCK MARKET
Indonesia’s stock market, known as the IDX, emerged out of the December 1, 2007 merger of two stock exchanges
operating in two different locations in Indonesia, the Jakarta Stock Exchange which was located in Jakarta, the capital city
of Indonesia, and the Surabaya Stock Exchange which was located in Surabaya in East Java.
As of December 31, 2015, the IDX had 521 issuers for equity and 109 active brokerage houses. In 2015, IDX recorded
a trading volume of 126 billion shares. As at December 31, 2015, the total market capitalization was valued at
Rp4,873 trillion (US$356billion).
Trading is divided into three segments: the regular market, negotiated market and the cash market (except for rights
issues, which can only be traded on the cash market and the negotiated market for the first session). The regular market
is the mechanism for trading stock in standard lots on a continuous auction basis during exchange hours. Auctions on the
IDX on regular market and cash market take place according to the price and time priorities. Price priority refers to the
giving of priority to buying orders at a higher price or selling orders at a lower price. If buying or selling orders are placed
at the same price, priority is given to the earlier placed buying or selling order (time priority). Trading on the negotiated
market is conducted through direct negotiation between (i) IDX members, (ii) clients through one IDX member, (iii) a
client and an IDX member, or (iv) an IDX member and the PT Kliring Penjaminan Efek Indonesia (“KPEI”). KPEI provides
clearing and guarantee services of stock exchange transactions settlement. It also improves efficiency and certainty of
transactions settlement on the IDX.
The Decree of the Board of Directors of the IDX No. Kep-00399/BEI/11-2012 provides that, effective January 2, 2013, the
trading sessions of the IDX is as follows:
Trading Session
Pre-opening
1st
2nd
Pre-closing
Post Trading
Market
Reguler
Reguler
Cash
Negotiation
Day
Trading hours
Monday - Friday
08.45.00-08.55.00
Monday-Thursday
09.00.00-12.00.00
Friday
09.00.00-11.30.00
Reguler
Monday-Thursday
Friday
Negotiation Monday-Thursday
Friday
Reguler
Reguler
Monday-Friday
Monday-Friday
13.30.00-15.49.59
14.00.00-15.49.59
13.30.00-16.15.00
14.00.00-16.15.00
15.50.00-16.00.00
16.05.00-16.15.00
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES The Decree of the Board of Directors of the IDX No. Kep-00071/BEI/11-2013, effective January 2, 2014, reduced lot size
500 shares to 100 shares, and changed the tick price and maximum share price movement to the following:
Previous
Group Price
Tick Price
Maximum Share
Price Movement
New
Group Price
Tick
Price
Maximum Share Price
Movement
Rp5.000
Rp50
Rp10
Rp50
Rp100
Rp250
Rp500
Rp5.000
Rp25
Rp500
Transactions on the IDX regular market must be settled no later than the third trading day after the transaction.
Transactions on the negotiated market are settled on the basis of the agreement between the selling exchange
members and the buying exchange members, on a transaction by transaction basis. Transactions on the IDX cash
market must be settled on the day of the transaction and reported to the IDX. If an exchange member defaults
on the settlement of a transaction, the securities can be traded by direct negotiation on cash and carry terms.
Each exchange member is required to pay a transaction fee as stipulated by the IDX. Any delay in payment of the
transaction fee is subject to a fine of 1.0% of the outstanding amount for each day of delay. The IDX may impose
sanctions on its members for any violation of exchange rules, which may include fines, written warnings, suspension
or revocation of licenses.
When conducting share transactions on the IDX, each exchange member is required to pay a transaction cost for
transactions on the regular market and cash market of 0.03%, guarantee fund of 0.01% of the transaction value and
VAT and other tax obligation. For the negotiated market, a transaction cost of 0.03% or an amount as stipulated
by the IDX is applicable. A minimum monthly transaction fee of Rp2 million is applied as a contribution for the
provision of exchange facilities and continues in effect for members who are suspended or whose Exchange
Member Approval revoked.
Since the global financial crisis in the last quarter of 2008 that caused a typical share price movements, the IDX
has applied a policy of auto rejection, a mechanism whereby share trading can be halted automatically in order to
maintain orderly, fair and efficient trading. Following changes made by the IDX in October 2008 and January 2009
the auto rejection trigger levels are 35% above or below the reference price for stocks in the Rp50 to Rp200 price
range, 25% for stocks in the Rp200 to Rp5,000 price range, and 20% for stocks priced more than Rp5,000. The auto
rejection level in the case of an initial public offering is determined at a level which is twice as high as for normal
trading. Auto rejection also arises when selling offer or buying request volume reaches of over 5 billion shares or 5%
of total shares listed, whichever is smaller.
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT ADS TRADING ON ThE NYSE
Bank of New York Mellon Corporation (previously “The Bank of New York”) serves as the “Depositary” for our ADSs
which are traded on the NYSE.
Investors pay a depositary fee directly or through a broker acting on their behalf for the delivery or surrender of ADSs
for the purpose of withdrawal. The Depositary also collects fees for making distributions to investors by deducting the
fee from the amount distributed or by selling a portion of the distributable property to pay the fee. The Depositary may
collect its annual fee for depositary services by making a deduction from the cash distributions or by directly billing
investors or by charging the book-entry system accounts of the parties acting on their behalf. The Depositary may
refuse to provide fee-generating services until its bills for such services are paid.
Costs Related to ADS Issue and handling
Shareholders depositing or withdrawing ordinary
shares or ADS must pay:
for:
US$5 (or less) per 100 ADS (or part of 100 ADS).
Issuance of ADS, including issuance resulting from a
distribution of shares or rights or other property.
US$0.02 (or less) per ADS.
Up to US$0.05 per ADS.
A fee equivalent to the fee payable if the securities
distributed to shareholders had been shares and those
shares had been deposited for the issuance of ADS.
Cancellation of ADS for the purpose of withdrawal,
including in case of termination of the deposit agreement
Any cash payment to registered ADS shareholders.
Receiving or distributing dividend.
Delivery of securities by the Depositary to registered ADS
shareholders.
US$0.02 (or less) per ADS per calendar year.
Depositary services.
Registration or transfer fees.
Depositary Fees.
Transfer or registration of shares on the share register
to or from the name of the Depositary or its agent when
shareholders deposit or withdraw ordinary shares.
Telegram, telex and fax transmissions (if provided for in
the deposit agreement).
Converting foreign currency to US Dollar.
Taxes and other duties levied by the government, the
Depositary or the custodian upon payment of the ADS or
other shares underlying the ADS, such as share transfer
tax, stamp duty or income tax.
As necessary.
Any costs incurred by the Depositary or its agent for
servicing the securities deposited.
As necessary.
The Depositary has agreed to reimburse us up to US$400,000 per year until 2015 for certain expenses we incur in
relation to the administration and maintenance of the ADS facility, including, but not limited to, direct or indirect
investor relations expenses and other ADS program-related expenses. The reimbursement will be evaluated and
adjusted if the number of ADSs outstanding falls below a stipulated minimum or if they are delisted from the NYSE. We
expect to renegotiate the reimbursement amount for subsequent years after 2015. In 2015, we received US$600,000 in
reimbursements from the Depositary.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES ADDRESS Of TELKOM INDONESIA
1. Corporate Office
Graha Merah Putih, Lantai 1
Jl. Japati No. 1 Bandung 40133
022-4521108
022-4240313
2. Corporate Secretary
Graha Merah Putih, lt. 1
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52922007 ext. 124
021-5203322
3. Internal Auditor
Graha Merah Putih, lt. 5
Jl. Japati No. 1 Bandung 40133
022-4525227
022-7206870
4. Sekretariat of President Director
Graha Merah Putih, lt. 1
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52922007 ext. 114/112
021-5202702
5. Director of human Capital
Management
Graha Merah Putih, lt. 1
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52922007 ext. 106
021-5209632
6. Director of Consumer Service
Graha Merah Putih, lt. 1
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52922007 ext. 108
021-5209637
7. Directorate of Wholesale &
International Business Service
Graha Merah Putih, lt. 1
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52922007 ext. 117
021-5205072
8. Director of Innovations & Strategic
Portfolio
Graha Merah Putih, lt. 1
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52922007 ext. 104
021-52963102
9. Director of Network IT & Solution
Graha Merah Putih, lt. 1
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52922007 ext. 121
021-5209835
10. Director of Enterprise & Business
Service
Graha Merah Putih, lt. 1
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52922007
ext. 102
021-5213834
11. Director of finance
Graha Merah Putih, lt. 1
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52922007
ext. 110/118
021-5220900
12. finance & Billing
Collection Center (fBCC)
Graha Merah Putih, lt. 3
Jl. Japati No. 1 Bandung 40133
022-4523371
022-4523377
13. human Capital Business
Partner Center
Graha Merah Putih, lt. 5
Jl. Japati No. 1 Bandung 40133
022-4525121
022-7206986
19. Information System Center (ISC)
Graha Merah Putih, lt. 4
Jl. Japati No. 1 Bandung 40133
022-4524228
022-7201890
20. Enterprise Service Division
Gedung Menara Multimedia lt. 19
Jl. Kebon Sirih No. 12 Jakarta Pusat 10110
021-23515000
21. Business Service Division
Jl. S. Parman Kav. 8 Jakarta Barat 11440
021-5656500
021-5651700
021-5652600
021-5656000
22. Government Service Division
Gedung Menara Multimedia lt. 7
Jl. Kebon Sirih No. 12
Jakarta Pusat 10110
021-25555500
23. Wholesale Service Division
Graha Merah Putih, lt. 8
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52917007
021-52892080
14. Telkom Corporate
University Center
Jl. Gegerkalong Hilir No. 47 Bandung 40152
022-2014343
022-2014429
022-2013238
24. Planning & Deployment Division
Graha Merah Putih, lt. 7
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-52903482
021-5221300
15. Supply Center
Graha Merah Putih, lt. 6
Jl. Japati No. 1 Bandung 40133
022-4526170
022-4526327
022-7206583
022-4526431
16. Digital Service Division
Jl. Gegerkalong Hilir No. 47 Bandung 40152
022-4574784
022-2014669
022-2013505
022-2014669
17. Community Development
Center (CDC)
Graha Merah Putih, lt. 8
Jl. Japati No. 1 Bandung 40133
022-4528219
022-4528206
18. Assessment Center Indonesia
Jl. Kapten Tendean No. 1 Bandung 40141
022-2035269
022-2035287
022-2035259
022-2034201
25. Service & Solution Division
Jl. Kebon Sirih No. 36
Jakarta Pusat 10110
021-3447070
021-3440707
26. Operation Service Division
Graha Merah Putih, lt. 9
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-5221500
021-5221400
021-5229600
27. Regional I Division of Sumatera
Jl. Prof HM Yamin SH No. 2,
Medan 20111
061-4151747
061-4150747
28. Telkom Area Western North Sumatera
Jl. Prof HM Yamin SH Medan 20111
061-4530011
29. Telkom Area Bangka Belitung
Jl. Rustam Effendi No.03,
Pangkalpinang 33128
0717-421861
94
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PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT 30. Telkom Area Riau Islands
Jl. Jaksa Agung R Suprapto,
Sekupang, Batam
0778-322000
0778-322720
31. Telkom Area Lampung
Jl. Majapahit No. 14, Lampung 35118
0721-266525
0721-263699
32. Telkom Area Eastern North Sumatera
Jl. Asahan Km 4.5, Pematangsiantar
0622-7550300
0622-7554082
33. Telkom Area South Sumatera
Jl. Jend. Sudirman No. 459 Km. 3,5
Palembang 30129
0711 - 360360
0711 - 310444
34. Telkom Area West Sumatera
Jl. KH Ahmad Dahlan No. 17,
Padang 25138
0751-7050000
0751-7050001
35. Telkom Area Riau Land
Jl. Jend. Sudirman 199,
Pekanbaru 28111
0761-31000
0761-40404
36. Telkom Area Nanggroe Aceh
Darussalam
Jl. S.A Mahmudsyah No.10,
Banda Aceh
0651-32500
0651-21818
37. Telkom Area Jambi
Jl. Sumantri Brojonegoro
No. 54, Jambi
0741-60000
0741-64000
42. Telkom Area West Jakarta
Jl. S Parman Kav. 8 Jakarta Barat
021-56969100
021-5655100
43. Telkom Area Central Jakarta
Jl. Kebon Sirih No. 36 Jakarta Pusat
021-3447070
44. Telkom Area South Jakarta
Jl. Sisingamangaraja Kav. 4 - 6
Kebayoran Baru Jakarta Selatan
021-7257171
021-7228400
45. Telkom Area North Jakarta
Jl. Yos Sudarso Kav. 23 - 24
Jakarta Utara
021-4366000
021-43921550
46. Telkom Area East Jakarta
Jl. DI Panjaitan Kav. 42
Jakarta Timur 13350
021-8560000
021-8560196
47. Telkom Area West Java of Northern
Jl. Rawa Tembaga No. 4 Bekasi 17141
021-8890000
021-8894100
48. Telkom Area Western West Java
Jl. Padjadjaran No. 37 Bogor
0251-8301107
0251-8329999
49. Regional Division III West Java
Jl. WR. Supratman No. 66A Bandung
022-4532225
022-4532134
56. Telkom Area Central Java of Western
North
Jl. Merak No. 2, Pekalongan
0285-421000
0285-424355
57. Telkom Area Central Java of Wester
South
Jl. Merdeka No. 26, Purwokerto
0281-645122
58. Telkom Area Northern Central Java
Jl. Pahlawan No. 10, Semarang
024-8303627
59. Telkom Area Central Java of Eastern
North
Jl. Jend. Sudirman No. 66 - 68 Kudus
0291-4250293
60. Telkom Area Southern Central Java
JL.Yos Sudarso No. 2, Magelang
0293-364755
61. Telkom Area Yogyakarta
Jl.Yos Sudarso No.9, Yogyakarta
0274- 577200
62. Telkom Area Central Java of Eastern
South
Jl. Mayor Kusmanto No. 1, Solo 57113
0271-634400
63. Regional Division V East Java
Jl. Ketintang No. 156 Surabaya 60231
031-8297100
031-8286080
64. Telkom Area Central West Java
Jl. Hayam Wuruk No. 45 - 47 Kediri 64122
0354-680942
50. Telkom Area Northern West Java
Jl. Tuparev No. 24 Karawang
0267-404444
0267-410002
65. Telkom Area Western East Java
Jl. D.I Panjaitan No. 19 Madiun
0351 - 493900
0351-494104
38. Telkom Area Bengkulu
Jl. Soeprapto No. 132, Bengkulu 38221
0736-28000
0736-20000
51. Telkom Area Southern West Java
Jl. Mesjid No. 17 Sukabumi
0266-212710
0266-225765
66. Telkom Area Southern East Java
Jl. A Yani No. 11 Malang 65125
0341-489100
0341-499111
39. Regional Division II Jakarta
Graha Merah Putih, lt. 10
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-5215100
021-5202733
40. Telkom Area West Banten (Serang)
Jl. Raya Jakarta Km. 9,5 Ciruas Serang
0254-282001
41. Telkom Area East Banten
(Tangerang)
Graha Telkom BSD, Graha Telkom BSD,
Jl. Pahlawan Seribu Serpong
Tangerang
021-5380000
021-5371500
52. Telkom Area Central West Java
Jl. Lembong No.11 Bandung
022-4540362
53. Telkom Area Eastern West Java
Jl. Papagongan No. 11 Cirebon
0231-255001
0231-201800
54. Telkom Area West Java of Eastern
South
Jl. Merdeka No. 23 Tasikmalaya
0265-322400
55. Regional Division IV Central Java &
DI Yogyakarta
Jl. Pahlawan No. 10, Semarang
024-8303306
67. Telkom Area Northern East Java
Jl. Wachid Hasyim No. 11 Gresik 61444
031-3977000
031-3971000
68. Telkom Area East Java Suramadu
Jl. Ketintang No. 156 Surabaya 60231
031 - 8298837
031-8299350
69. Telkom Area East Java of Central East
Jl. Sultan Agung No. 48 Sidoarjo 61211
031 - 8941000
031-8962500
70. Telkom Area Eastern East Java
Jl. Gajah Mada No. 182-184 Jember
0331 – 353200
0331-483321
94
PT Telkom Indonesia (Persero) Tbk
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95
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 71. Telkom Area East Java of Southern East
Jl. Alun-Alun No. 1 Pasuruan
0343-432100
84. Telkom Area Western South Sulawesi
Jl. Andi Isa No.7 Pare-Pare
0421-24044
0421-24697
72. Telkom Area South Bali
Jl. Raya Puputan Renon No. 33, Denpasar
0361-222021
0361-262111
73. Telkom Area North Bali
Jl. Letkol Wisnu No. 2, Singaraja
0362-231187
0362-231187
74. Telkom Area West Nusa Tenggara
Jl. Pendidikan No.23 Mataram
0370-632000
0370-632000
75. Telkom Area East Nusa Tenggara
Jl. WJ. Lalamentik No.93 Kupang 85111
0380-840000
0380-840000
76. Regional Division VI Borneo
Jl. MT.Haryono No. 169 Balikpapan 76114
0542-872104
0542-873340
77. Telkom Area Central East Borneo
Jl. Awang long No.54 Samarinda 75121
0541-732000
0541-762010
78. Telkom Area Northern East Borneo
Jl. Simpang Tiga Tarakan 77111
0551-21000
79. Telkom Area Southern East Borneo
Jl. MT.Haryono No. 169 Balikpapan 76114
0542-873500
0542-873030
80. Telkom Area West Borneo
Jl. Teuku Umar No. 2 Pontianak 78117
0561-734055
0561-78000
81. Telkom Area Central Borneo
Jl. A.Yani No.45 Palangkaraya 73111
0536-3221116
0536-3224321
82. Regional Division VII Eastern Indonesia
Area
Jl. AP. Pettarani No.2 Makassar 90221
0411-867777
0411-881651
83. Telkom Area South Sulawesi
Jl. AP. Pettarani No.2 Makassar 90221
0411-880000
0411-888804
85. Telkom Area Central Sulawesi
Jl. Ir. Juanda No. 25 Palu 94125
0451-421759
0451-421759
86. Telkom Area Southeast Sulawesi
Jl. A. Yani No.8 Kendari 93117
0401-3912100
0401-3912100
87. Telkom Area North Sulawesi & North
Maluku
Jl. WR. Supratman No. 5
Manado 95112
0431-853000
0431-853000
88. Telkom Area Maluku
Jl. JB. Sintala No. 9 Ambon 97115
0911-349100
0911-349100
89. Telkom Area West Papua
Jl. A.Yani No.16, Sorong
0951-3102009
0951-3102009
90. Telkom Area Papua
Jl. Kayu Batu Base 6, Jayapura
0967-541499
0967-541499
91. PT Telekomunikasi Selular
(Telkomsel)
www.telkomsel.co.id
Komplek Telkom Landmark Tower
Telkomsel Smart Office (TSO)
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710
021-5240811
021-52906090
92. PT Telekomunikasi Indonesia
Internasional (Telin)
www.telin.co.id
Menara Jamsostek North Tower lt. 24
Jl. Jend. Gatot Subroto No. 38 Jakarta
12710
021-29952330
021-2962358
021-52962358
93. PT Infrastruktur Telekomunikasi
Indonesia (Telkom Infra)
Mugi Griya Building lt.5
Jl. MT Haryono Kav 10 Jakarta
021-83708471
94. PT Multimedia Nusantara
(Telkommetra)
www.metra.co.id
The East Tower lt. 33 dan lt. 37
Jl. Dr. Ida Anak Agung Gede Agung Kav.
E.3.2. No. 1 Kuningan Timur, Setiabudi
Jakarta selatan 12950
021-5210123
021-5210124
95. PT Dayamitra Telekomunikasi
(Mitratel)
www.mitratel.co.id
Gedung Graha Pratama lt.5
Jl. MT Haryono Kav. 15 Jakarta 12810
021-83709593
021-83709591
96. PT Infomedia Nusantara
(Infomedia)
www.infomedianusantara.com
Jl. RS Fatmawati No. 77 - 81 Jakarta
Selatan 12510
021-7201221
021-7201226
97. PT Metra Digital Media
(MD Media)
www.mdmedia.co.id
Jl. RS Fatmawati No. 77 - 81
Jakarta Selatan 12510
021-7997488
021-7997469
021-7258116
98. PT Sigma Cipta Caraka
(Sigma)
www.telkomsigma.co.id
Menara Dea lt.7-8
Jl. Lingkar Mega Kuningan
Kav. E 4.3 No.1
Jakarta 12950
021-5762150
021-5762155
99. PT Metra-Net (Metranet)
www.plasamsn.com
Mulia Business Park Building J
Jl. MT Haryono Kav. 58 - 60
Pancoran Jakarta 12780
021-79187250
021-79187252
100. PT Administrasi Medika
(AdMedika)
www.admedika.co.id
STO Telkom Gambir, Gedung C
Jl. Medan Merdeka Selatan No.12
Jakarta Pusat 10110
021-34831100
021-34830101
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97
PENDAHULUANGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORT 111. PT Patra Telekomunikasi Indonesia
(Patrakom)
www.patrakom.co.id
Jl. Pringgondani II No. 33,
Alternatif Cibubur
Depok 16954
021-8454040
112. PT Graha Sarana Duta
(Telkom Property)
www.telkomproperty.co.id
Jl. Kebon Sirih No. 10 - 12
Jakarta Pusat 10110
021-3800900
021-3800686
021-500473
021-34830653
021-34835489
13. PT Telkom Akses
(PTTA)
www.telkomakses.co.id
Jl. S Parman Kav. 8
Jakarta Barat 11440
021-29337000
021-29336000
101. PT PINS Indonesia (PINS)
www.pins.co.id
Plaza Kuningan, Gd. Annex lt. 7
Jl. HR Rasuna Said Kav.C 11 – 14
Jakarta Selatan 12940
021-5202560
021-52920156
102. PT finnet Indonesia (finnet)
www.finnet-indonesia.com
Menara Bidakara lt. 2
Jl. Jend. Gatot Subroto Kav. 71 – 73
Pancoran
Jakarta 12780
021-8299999
021-8281999
103. PT Melon Indonesia (MelOn)
www.melon.co.id
Gedung PT Telkom lt.7
Jl. Sisingamangaraja Kav. 4 - 6
Jakarta Selatan
021-7244493
021-7244390
104. PT Metraplasa (Metraplasa)
Mulia Business Park, Gedung J
Jl. MT Haryono Kav. 58 - 60 Pancoran
Jakarta 12780
021-79187250
021-79187252
105. PT Integrasi Logistik
Cipta Solusi (ILCS)
www.ilcs.co.id
Plasa Telkom lt. 4
Jl. Yos Sudarso No. 23-24
Tanjung Priok
Jakarta
021-43932555
021-43936555
106. Metrasat
Email: sales@metrasat.co.id
Kantor Pemasaran:
The East Tower lt. 33
Jl. Dr. Ida Anak Agung Gede Agung
Kav. E.3.2. No. 1 Kuningan Timur, Setiabudi
Jakarta Selatan 12950
021-5210123
021-5210124
107. PT Pojok Celebes Mandiri (Pointer)
www.pointer.co.id
Jl. Condet Raya No. 333/J,
Balekambang, Kramat Jati
Jakarta 13530
021-29373372
021-80876387
108. PT Teltranet Aplikasi Solusi
(Telkomtelstra)
www.telkomtelstra.co.id
Prudential Centre Level 22, Kota Kasablanka Mall
Jl. Casablanca Raya Kav. 88
Jakarta Selatan 12870
109. PT Metra Digital Investama (MDI)
The East Tower lt. 33
Jl. Dr. Ida Anak Agung Gede Agung
Kav. E.3.2. No. 1 Kuningan Timur, Setiabudi
Jakarta Selatan 12950
021-5210123
021-5210124
110. PT Indonusa Telemedia
(Transvision)
www.transvision.co.id
Jl. Kapten Tendean No. 88 C, Kuningan Barat,
Mampang Jakarta Selatan
Call Center
15000 60
TELKOM OVERSEAS ADDRESS
1. Telin Singapore
www.telin.sg
1Maritime Square, #09-63 Harbour Front
Center
Singapore - 099253
+65 6278 8189
+65 6273 1169
2. Telin hong Kong
www.telin.hk
Suite 905, 9/F, Ocean Centre , 5 Canton
Road Tsim Sha Tsui, Kowloon
Hong Kong
+852 3102 3309
+852 3102 3306
3. Telin Timor-Leste
www.telkomcel.tl
Timor Plaza Lantai 4, Rua Presidente
Nicolao Lobato, Comoro
Dili – Timor Leste
+670 737373
+670 747474
4. Telkom Australia
www.telkom.com.au
Level 19 suite 1930, 180 Lonsdale St,
Melbourne VIC 3000 Australia
1300 TELKOM (835566)
5. Telin Malaysia
Suite 23 A-1, 23 A Floor, Wisma UOA II,
Number 21, Jalan Pinang, 50450
Kuala Lumpur
Malaysia
+60 3233 20680
+60 3216 12276
6. Telkom Macau
Avenida Comercial de Macau, Finance & IT
Centre Macau, 5 Andar A, Suite 31
Macau
+853 82964858
7. Telkom Taiwan
7F-1, No. 77 Zhouzi St,
Neihu District, Taipei City
Taiwan 114
+886 2 87525071
8. Telkom USA
www.telkom-usa.net
The Bloc Executive Suites
700 S. Flower Street, 11th floor,
Suite 36-37
Los Angeles, CA 90017
+1 213 232 1126
9. Telin Branch Office in Myanmar
#411,412,415, Level-4, Strand
Square
53 Strand Road, Pabedan
Township, Yangon,
The Republic of the Union of
Myanmar
+95 9 420238594
+95 9 972460406
10. Telin Kingdom Saudi Arabia
Grapari Makkah: Abraj Al-Bait, Lt
P3 (Food Court area)
+966 59 8881945 (Riyadh), dan
+966 58 1781945 (Jeddah)
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 98
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PT Telkom Indonesia (Persero) Tbk
99
PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS 05
MANAGEMENT
DISCUSSION AND
ANALYSIS OF
TELKOM INDONESIA
PERFORMANCE
101
Economic and Industry Overview
106 Business Overview
128
Financial Overview
161 Operational Overview
176
Functional Overview
98
PT Telkom Indonesia (Persero) Tbk
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99
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Maintaining favorable
profitability level
The following management’s discussion and analysis
In 2015, our consolidated revenues increased by 14.2% to
on the performance of this company is based on
Rp102,470 billion. Meanwhile our EBITDA and net income
Consolidated Financial Statements for the years ended on
increase by 12.6% and 7.0%, respectively. We successfully
December 31, 2013, 2014, and 2015 which is also attached
maintaining favorable profitability level with EBITDA
in this Annual Report. The presentation of Consolidated
margin by 50.2% and net profit margin recorded at 15.7%.
Financial Statements complies with FAS applied in
Indonesia, which in several terms differ with IFRS.
As of December 31, 2015 we had 152.6 million cellular phone
Our principal business is providing telecommunication
on fixed line networks. Our broadband subscribers
and informatics network and service and optimization
consisted of 43.8 million Telkomsel Flash users and 4.0
of Company’s resources. Through our 65% of ownership
in Telkomsel, we become the biggest mobile cellular
million fixed broadband subsribers. We also provide wide
range of communication services, including multimedia,
service provider.
data and
internet communication-related services,
subscribers through Telkomsel, 10.3 million subscribers
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101
PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS satellite transponder leasing, leased line, interconnection,
of commodities and oil will continue to suppress the
cable television and VoIP services, as well as multimedia
economic growth of the economic of some countries
business such as contents and applications.
of Latin America, Middle East, Russia and some Asian
countries. Meanwhile, in the financial sector, the interest
The growth of Indonesian economy in 2014, measured
rate of United States Federal Funds Rate (“FFR”)
by Gross Domestic Product (“GDP”) at current prices,
would affect the dynamics of global economy, due to
grew by 4.8%, with be supported by strong domestic
rate changes of FFR generally responded by economic
consumption. The rupiah against the US dollar exchange
policies of various countries, potentially creating volatility
rate determined based upon by Bank Indonesia exchange
in the financial markets. Nevertheless, the 2016 global
rate reached Rp13,795 or depreciated 10.9% at the close
economy is predicted to continue to grow 3.6%, better in
of December 31, 2014.
comparison to 2015.
1 Goldman Sachs International Research
Such global economic condition provided less significant
impact to our business thus the foreign exchange rate
encouraged certain risks on sales, purchase and financing
tHe inDoneSian MaCro eConoMy
transaction primarily denominated in foreign currencies.
In 2015, Indonesia’s economy grew at a relatively good
Our revenues over 2013 to 2015 period reflected a
rate, although still a little under its original target at 4.8%.
progressive growth in revenues. The growth was driven
by increasing in revenues from data, internet and
Several factors, external or internal, caused the slowdown
of economic growth. The external factors that influenced
information technology service by 26.5%. This growth
this slowdown were the global economic slowdown
was primarily driven by increasing of data usage and
in general, including in China, who is Indonesia’s main
mobile broadband subscriptions. Moreover, revenues
trade partner, and falling commodity prices that affected
growth was also driven by increasing in legacy cellular
Indonesia’s economy, especially in the regions outside of
revenue both voice and SMS.
the Island of Jave. Meanwhile, the most important internal
factors was the public’s decreasing purchasing power,
Throughout 2013 to 2015, there had been an increase in
among others due to the elimination of fuel subsidies
costs, especially operational and maintenance costs and
by the end of 2014. The public’s purchasing power is
depreciation costs, along with infrastructure development
the key to economic growth, considering that more than
to improve the necessary network capacity to support
half of Indonesia’s gross domestic product comes from
our services to customers, especially internet and data
household consumption or expenditures.
services, for fixed line or cellular customers.
eConoMiC anD inDUStry
overvieW
tHe global MaCro eConoMy
The global economic growth in 2015 was at 3.2%, relatively
stable compared to 20141. The global economic situation
that in general is still weak, is among others triggered by
To push for economic growth, the Government of
Indonesia has delivered various economic stimuli through
economic policy packages, among others a policy
to simplify the business licensing process, efforts to
increase manufacture exports and tax incentive schemes.
In addition, a healthier posture of the State’s Revenue
and Expenditure Budget (APBN), after the elimination
of fossil fuel subsidies, is expected to stimulate long-
term economic growth through the improvement of
infrastructure development.
the falling of oil prices and other commodities, China’s
The inflation rate in Indonesia in 2015 is under control,
economic slowdown and the weak economic growth of
about 3.4% and in 2016, the Central Bank of Indonesia
other key countries such as the United States, several
(BI) is targeting an inflation rate of 4%, plus minus 1%.
Eurozone countries and Japan.
Meanwhile, the reference interest rate from the Central
Bank (BI Rate) is relatively stable in 2015 with a tendency
In 2016, the global economy is predicted to remain
of declining. By the end of the year, the BI Rate reached
filled with challenges, considering that the global prices
7.5%, 25 Bps lower than January 2015.
100
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
Meanwhile, throughout the year, Rupiah’s exchange
share. Telkomsel leads over Indosat and XL Axiata,
rate against the US$ (according to the exchange rate
both in terms of operational and financial parameters.
average of the Central Bank of Indonesia) has declined or
Telkomsel’a leading position is expected to last in the
depreciated 10.6% to Rp13,795/US$ by the end of 2015.
upcoming years given Telkomsel’s better ability to invest
In the last several years, the Rupiah tended to depreciate,
in infrastructure development to improve service quality
whereby in early 2013 the rate was Rp9,733/US$, and by
and network expansion.
the end of 2013 it became Rp12,250/US$; then by the end
of 2014 the rate was Rp12,502/US$. Other countries in the
The shifting trend from legacy services (voice and SMS) to
region also experienced the depreciation of their exchange
data services is still rapidly advancing, driven by cheaper
rate, which indicates that the global economic situation
prices of smartphones as well as the rapidly growing
has a significant influence to the Rupiah’s exchange rate.
youth segment. Data traffic has grown very rapidly, while
However, there were several internal factors that caused
SMS service traffic has decreased. We expected that this
the steep depreciation of the Rupiah, such as the trade
trend will continue, given that the smartphone penetration
balance deficit in several months in 2015.
in Indonesia is still relatively low with relatively low data
However in general, Indonesia’s economic growth is still
telecommunications industry will be driven by the growth
consumption by smartphone users, and the growth of the
better than the average growth of the global economy
of data services.
and the countries of the ASEAN. The dynamics and
fluctuation of the global economy has the potential to
continue in 2016, so Indonesia still needs to remain alert
One of the main challenges faced by the industry is the
increasing use of over the top (“OTT”) services that
of some risks that might arise. As a country with one
has become a substitute for voice and SMS services,
of the largest population, Indonesia has the benefit of
in line with the growing number of smartphone users.
a huge domestic market, good demographic structure
This has happened not only in Indonesia, but also in
with a high increasing workforce and middle class for
developed countries where smartphone penetration
several years to come. This can become a positive
is high. Therefore, telecommunication operators must
momentum to create economic growth by maximizing
have an appropriate business model, which may include
any existing opportunities.
collaboration with OTT players, in order to properly
manage the impact.
teleCoMMUniCationS inDUStry
DevelopMent in inDoneSia
For the fixed network segment (fixed
line), fixed
broadband services have been on the rise throughout
2015, especially in the large cities, marked by the
In the middle of a domestic economic slowdown, the
emergence of several new players. The Indonesian public
telecommunications industry recorded an excellent growth
has begun to realize the importance of high-quality
of 9% in 2015, nearly double the growth rate of the GDP.
internet connectivity to houses. Currently, the penetration
This demonstrates that the need for telecommunication
of fixed broadband services in Indonesia is still very low
and access to information are increasing and have even
and relatively lower than in some neighboring countries
become part of the basic needs of Indonesian society,
such as Singapore and Malaysia. Therefore, we expect
that people are still buying telecommunication services
that the fixed broadband segment will experience rapid
despite the decrease of purchasing power due to several
growth in the future, in line with the growth of the middle
factors, including the elimination of fuel subsidies by the
class in Indonesia.
end of 2014 and poor commodity prices.
The penetration of SIM cards in the cellular industry
has increased several-fold, and it is expected that the
in Indonesia is quite high, at well over 100%, making
consumption level per user will continue to grow rapidly
continued growth in penetration increasingly limited.
from the current average data consumption per user.
The mobile industry is currently dominated by three
The growth of data consumption needs large capital
major players who hold approximately 90% of the market
expenditure in order to increase capacity and coverage.
In recent years, data consumption in the mobile segment
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103
PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Nevertheless, some operators have financial limitations to
CoMpetition
establish networks due to low levels of profitability. The
level of ARPU in Indonesia is also relatively low compared
Measures
following
the
Telecommunications
to the global or Asia Pacific average.
Law’s adoption
in 2001 moved the
Indonesian
telecommunications sector from a duopoly between
The increasing penetration of smartphones and data
Indosat and us to one with multiple competing
consumption has fueled the growth of digital content
providers. See “Others – Legal Basis and Regulation
and applications. With better mobile data connectivity,
–
Introduction of Competition
in the
Indonesian
people have began consuming a variety of digital content
Telecommunications Industry”.
and application services beyond social media, such as
e-Commerce, digital payment and digital advertising, and
it has also led to a variety of innovative applications such
Competition law
The indoneisan telecommunications sector is regulated
as Gojek services. This trend is expected to continue and
by Law No.36/1999 (the “Telecommunications Law”),
content consumption is also expected to lead to game
which became effective on September 8, 2000. The
and video streaming consumption.
Telecommunications Law sets guidelines for industry
reforms, including industry liberalization, to facilitate
For the fixed broadband segment, Telkom and First
new entrants as well as to increase transparency and
Media (LinkNet) control around 95% market share of
competition. The Telecommunications Law abolished
fixed broadband. In other business segments, Telkom has
been dominating connectivity services for corporations
the concept of “organizing entities” in the industry,
which terminated the special status of Telkom and
and small and medium enterprises (SMEs), wholesale
Indosat as the organizing body who is responsible for
line rental and leasing of satellite transponders. In the
coordinating telecommunication services domestically
field of Information and Communication Technology
and internationally. In order to increase competition,
(ICT), Telkom through Sigma has a market share which is
the Telecommunications Law prohibits monopolistic
around 5% for IT services and 10% for data center. Within
practices and unfair competition among
fellow
the telecommunication tower business, Telkom Group has
telecommunication operators.
more than 24,000 towers, which around 6,800 towers
operated by Mitratel and around 17,800 towers operated
The Telecommunications Law is implemented through
by Telkomsel has nmore than 17,000 towers, larger than
a variety of Government Regulations and Ministerial
the number of towers that are owned by PT Tower
Regulations,
including Government Regulation
Bersama Infrastructure Tbk, PT Sarana Menara Nusantara
No.52/2000 on Telecommunications, Decree of the
(Protelindo) and PT Solusi Tunas Pratama.
Minister of Communication and Informatics No.1/
PER/M.KOMINFO/01/2010 dated January 25, 2010 on
The government has completed the drafting of the
Provision of Telecommunication Networks, Decree
Indonesia Broadband Plan 2014-2019, which was enacted
of the Minister of Transport No.33/2004 on the
through Presidential Decree Number 96 of 2014. In the
Monitoring of Fair Competition of the Fixed Network
Indonesia Broadband Plan 2014-2019, broadband is
and Basic Telephone Service Operations and Decree
defined as internet access with guaranteed nonstop
of the Minister of Transportation No.KM.4/2001 dated
connectivity, guaranteed durability and information safety
January 16, 2001 on the National Basic Technical
as well as Triple Play capability with a minimum speed of
Plan 2000 for the National Telecommunications
2 Mbps for fixed access and 1 Mbps for mobile access.
Development (“National Technical Telecommunications
Plan”). The National Technical Telecommunications
In the next five years (2019), the development of national
Plan has been amended several times, most recently
broadband is expected to provide fixed access in urban
is the Decree of the Minister of Communication and
areas to 71% of households (20 Mbps) and 30% of
Informatics No.09/PER/M.KOMINFO/06/2010 dated
the population, as well as mobile access to the entire
June 9, 2010. Along with the Telecommunications
population (1 Mbps). For rural areas, access to fixed
Law, National Technical Telecommunications Plan
broadband infrastructure is expected to reach 49% of
determines the basic vision for the development of
households (10 Mbps) and 6% of the population, as well
Indonesia’s telecommunications regulator.
as mobile access to 52% of the population (1 Mbps).
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES The government
is currently encouraging healthy
DLD services through its CDMA-based fixed wireless
competition and transparency in the telecommunications
network, its fixed line network and the interconnection
sector, even though the government does not prevent
arrangement with us.
operators from obtaining and increasing its dominance
in the market through specific regulations. Nevertheless,
We also compete against other major fixed broadband
the government prohibits market leading operators from
service providers such as PT First Media Tbk and PT
abusing its dominant position.
Supra Primatama Nusantara (BizNet Networks) as well as
new providers, PT Media Nusantara Citra and My republic.
Competition in the telecommunications sector, like all
Indonesian business sectors, is also governed more
generally by Law No.5/1999 dated March 5, 1999 regarding
Cellular
We operate our cellular service business through our
Prohibition of Monopolistic Practice and Unfair Business
65% majority-owned subsidiary, Telkomsel. By subscriber
Competition (“Competition Law”). The Competition Law
numbers, Indonesia’s cellular market is dominated by
bans agreements and activities tending toward unfair
Telkomsel, Indosat, Hutchison and XL Axiata, which
business competition, as well as the abuse of a dominant
collectively accounted for approximately 97% of the
market position. Pursuant to the Competition Law, the
full-mobility cellular market of December 31, 2015. Other
Commission for the Supervision of Business Competition
providers include Smartfren Telecom and Bakrie Telecom.
(“KPPU”) has been established as Indonesia’s antitrust
regulator with the authority to enforce the provisions of
the Competition Law.
There were approximately 340 million mobile cellular
subscribers in Indonesia as of December 31, 2015, a
The Competition Law
is
implemented by various
December 31, 2014. The relatively high penetration of the
regulations,
including
Government
Regulation
mobile market make continued growth in penetration
No.57/2010 dated July 20, 2010 regarding Mergers and
increasingly limited, with the number of SIM card, user
6.3% increase from approximately 320 million as of
Acquisitions Potentially Causing Monopolistic Practices
reaching saturation level.
or Unfair Business Practices. Government Regulation
No.57/2010 permits voluntary consultation with the
As of December 31, 2015, Telkomsel remained the
KPPU prior to a merger or acquisition, which will result
largest national licensed provider of cellular services
in the KPPU issuing a non-binding opinion. Government
in Indonesia, with approximately 152.6 million cellular
Regulation No.57/2010 also requires that a mandatory
subscribers and a market share of approximately 47%
report be made to the KPPU after a merger or acquisition
of the cellular market based on the estimated number
is completed if the transaction exceeds certain asset or
of subscribers. The next largest providers were Indosat,
sales value thresholds.
Hutchison and XL Axiata, which have a market share of
approximately 21%, 16% and 13% respectively, based on
fixed Services
Our exclusive right to provide domestic fixed line
the estimated number of subscribers as of December
31, 2015. In addition to the nationwide GSM operators, a
telecommunications services
in
Indonesia ended
number of smaller regional GSM, analog and CDMA fixed
following the Telecommunications Law’s implementation
wireless providers operate in Indonesia.
in 2000. At that time, the MoC issued licenses to Indosat
for domestic fixed line services in August 2002 and
for DLD telephone services in May 2004. We entered
international Direct Dialing (iDD)
We compete in traditional IDD services (non-VoIP)
into an interconnection agreement with Indosat dated
in Indonesia primarily with Indosat, as well as Bakrie
September 23, 2005 to allow interconnection between
Telecom. However, in line with development of digital
our local fixed line services in Jakarta, Surabaya, Batam,
technology, our IDD also faces competition with VoIP
Medan, Balikpapan, Denpasar and certain other areas.
and other internet-based voice services like Skype and
By 2006, Indosat was able to provide nationwide
Google Talk.
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105
PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS voice over internet protocol (voip)
We
formally
launched our voice service through
tower
As of December 31, 2015, through our subsidiary, Mitratel,
VoIP technology in September 2002. VoIP uses data
we operated 6,800 telecommunication tower located
communications to transfer voice traffic over the
throughout Indonesia. We lease out space to other
internet, which usually provides substantial cost savings
operators to place their telecommunications equipment
to subscribers. A number of other companies, including
on these towers, for which we receive a fee. Most towers
XL Axiata, Indosat, Atlasat Solusindo Pte. Ltd., PT
owned by Telkomsel also leased to other operators. Our
Gaharu Sejahtera, PT Satria Widya Prima, PT Primedia
principal competitors in this tower business are PT Tower
Armoekadata Internet and PT Jasnita Telekomindo also
Bersama Infrastructure Tbk, PT Sarana Menara Nusantara
provide licensed VoIP services in Indonesia.
Tbk (Protelindo), PT Solusi Tunas Pratama Tbk as well as
other telecommunications operators that have and lease
We currently offer our primary VoIP service “Telkom
space on towers.
Global-01017” and the lower-cost alternative “Telkom
Save”. Telkom Save offers discounted rates for certain
countries to which there is heavy traffic from Indonesia
others
The dynamic development of the telecommunications
while offering regular VoIP tariff rates for other countries.
sector has opened up new opportunities, particularly
In addition to other VoIP operators, we also compete with
with the increasing growth of the over the top (OTT)
internet-based voice services likes Skype and Google Talk.
services which provide a substitute service to basic
Satellite
The Asia-Pacific region and especially Southeast Asia
telecommunications services such as voice and SMS.
Some OTT service providers are quite popular, including
WhatsApp, Facebook, Line, and many others. The
continues to need satellites for both telecommunications
presence of these OTT services has affected the use of
and broadcasting
infrastructure, due
to
the
legacy services, particularly SMS, which has resulted in
characteristics of the region as an archipelago. The
traffic falling in recent years.
capabilities provided by satellites
include cellular
backhaul, broadband backhaul, enterprise network,
OUTV (Occasional Usage TV), military and goverment
network, video distribution, DTH television, flight
communication and disaster recovery.
We compete with a number of other satellite operators with
satellites covering Southeast Asia, and several operators
are in the process of developing satellites withcoverage
of Southeast Asia. However, we believe that demand for
satellite transponder capacity still exceeds current supply.
In view of the market opportunities, limited supply and
our own requirements, we are currently in the process
of developing the Telkom-3S satellite, which is currently
planned for launch in late 2016, and the Telkom-4 satellite,
which is currently planned for launch around the end of
2017. We expect that Telkom-3S will replace Telkom-2
and Telkom-4, which will also have coverage to India, will
replace Telkom-1.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES bUSineSS overvieW
StrategiC WorKing prograMS of 2015
Meanwhile, some initiatives are conducted by Telkom to
strengthen its footprint regionally, by developing and
In 2015, Telkom continues the Three Main Programs which
widening its business in 10 countries, in various business
have been determined since two years ago to maintain
models with measured risks and in line with the entire
the sustainable growth. The said three programs are to
strategies of Telkom.
maintain the double digit of Telkomsel, to push digital
business through Indonesia Digital Network, as well as to
develop and widen international business.
bUSineSS portfolio
The role of Telkomsel is very strategic considering its
Our Digital TIMES Portfolio is part of our effort in order to
substantial contribution to total income of Telkom, so that
be more focused on customer value. Beginning January
it is very important for us to ensure that Telkomsel has a
1, 2016, we have reorganized our 15 previous portfolios
good performance.
Indonesia Digital Network or IDN consists of id-Access
which constitutes fiber optic based broadband access to
(consisting of nine product portfolios and six customer
portfolios), into six product portfolios, mapped onto five
CFUs, and are in the process of continuing to reorganize
internally to reflect our revised product portfolio and
houses, id-Ring which constitutes fiber-based broadband
CFU structure.
highway and has national scale as backbone network,
and id-Convergence which constitutes high capacity
Our six revised product portfolios are categorized into
data center that is integrated with Telkom network, which
several lines of business as follows:
constitutes infrastructure foundation in order to support
data service either through business unit cellphone or
fixed line. Infrastructure of broadband network which
telecommunication business
Our product portfolios focused on Telecommunication
excels in either coverage, capacity or capability will give
are:
the best experience to the customers of Telkom.
- Mobile (mobile legacy, i.e. mobile voice and SMS, and
mobile broadband).
- Fixed (fixed voice, fixed broadband).
-
Interconnection and International Traffic (wholesale
telecommunication services – interconnection and
international business).
- Network Infrastructure (satellite and tower operations).
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS information business
Our product portfolio focused on the information
operational overview by Segment
business for Digital Enterprise, which are includes
As part of the Company’s strategy to provide a
Information and Communications Technology Platform
thoroughly and comprehensively (one-stop solution) to
(Enterprise Connectivity, IT Services, Data Center and
our customers, since 2013, we have changed our business
Clouds, BPO, Devices/Hardware), and Smart Enabler
segment approach from product based to customers
Platform (Payments, Digital Advertising, Big Data and
based. These changes result in our segment information
Other Smart Enablers).
presentation from fixed wireline, fixed wireless, cellular
and others becomes segmental reports of corporate,
Media and edutainment business
Our product portfolios focus on Media and Edutainment is
home, personal and others.
Digital Consumer (e-Commerce, video-TV, digital mobile).
We have four main operating segments, described in
All of our product portfolios are mapped onto one or more
more details as follows:
of five new CFUs, namely:
• CFU Mobile.
• CFU Digital Service.
• CFU Consumer.
• CFU Enterprise.
- Our corporate segment provides telecommunications
services
including
interconnection,
leased
lines,
satellite, VSAT, contact center, broadband access,
information technology services, data and internet
• CFU Wholesale & International.
services to companies and institutions.
- Our home
segment provides fixed wireline
telecommunications services, pay TV, data and internet
services to home consumers.
- Our personal segment provides mobile cellular to
individual consumers.
- Our others segment, particularly provides building
management services.
operating Customer by Segment
Operating Customer by Segment
Unit
Year ended on December 31,
2015
2014
2013
Corporate Segment
Satelit-transponder
Leased channel
IPLC
Datacomm
Corporate internet
MHz
Mbps
Mbps
Mbps
Mbps
Fixed wireline (POTS)
(000) subscribers
Fixed broadband
(000) subscribers
Home Segment
Fixed wireline (POTS)
(000) subscribers
Fixed broadband
(000) subscribers
Individual Segment
4,648
99,827
8,435
1,907,012
146,843
1,547
413
8,730
3,570
3,560
88,257
8,639
930,327
93,368
1,465
353
8,233
3,047
Seluler
(000) subscribers
152,641
140,585
Fixed wireless
(000) subscribers
N/A
Mobile broadband
(000) subscribers
43,786
4,404
31,216
3,007
84,264
9,421
381,440
62,687
1,408
315
7,943
2,698
131,513
6,766
17,271
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES telkom’s results of operation by Segment
As of December 31, 2015, Telkom Group’s revenue is dominated by personal segment revenues Rp76,131 billion or 61%,
followed by corporate segment revenues of Rp35,419 billion or 28% and home segment revenues Rp11,671 billion or 9%.
The following chart segment operating results in the last 3 years:
revenues
80,000
60,000
40,000
20,000
2015
2014
2013
Corporate
Home
Person
Others
Telkom’s Results of Operation
By Segment
Corporate
Revenues
External Revenues
Inter-segment revenues
Total segment revenues
Total segment expenses
Segment Results
Depreciation and amortization
Growth
2015-2014
(%)
(Rp
billion)
Years Ended December 31
2015
2014
(Restated)
(US$ juta)
(Rp billion)
2013
(Rp
billion)
12.3
34.7
20.4
24.9
5.4
0.3
21,072
14,347
1,529
1,041
18,763
10,652
17,041
8,549
35,419
2,569
29,415
25,590
(28,305)
(2,053)
(22,663)
(20,375)
7,114
516
(2,708)
(196)
(41)
6,752
(2,699)
(184)
5,215
(2,423)
(994)
Provision for impairment of receiveables
204.3
(560)
Home
Revenues
External Revenues
Inter-segment revenues
Total segment revenues
Total segment expenses
Segment Results
Depreciation and amortization
Provision for impairment of receiveables
Personal
Revenues
9.5
63.2
24.8
27.4
(33.2)
(19.5)
(36.4)
7,319
4,352
11,671
531
316
847
6,682
2,667
9,349
6,669
2,794
9,463
(11,411)
(828)
(8,960)
(8,885)
260
(1,203)
(297)
19
(87)
(22)
389
(1,495)
(467)
578
(1,487)
(390)
External Revenues
15.3
73,766
5,351
64,000
59,028
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
Telkom’s Results of Operation
By Segment
Inter-segment revenues
Total segment revenues
Total segment expenses
Segmen Results
Depreciation and amortization
Growth
2015-2014
(%)
(Rp
billion)
Years Ended December 31
2015
2014
(Restated)
(US$ juta)
(Rp billion)
(12.0)
14.2
14.6
13.4
20.4
2,365
76,131
172
2,686
5,524
66,686
(51,303)
(3,722)
(44,786)
24,828
1,801
21,900
(14,531)
(1,054)
(12,071)
Impairment of fixed assets
(100.0)
-
Provision for impairment of receiveables
11.3
(148)
Other
Revenues
External Revenues
Inter-segmen revenues
Total segmen revenues
Total segmen expenses
Segmen Results
Depreciation and amortization
24.7
19.1
19.8
18.7
30.9
50.8
Provision for impairment of receiveables
(100.0)
-
(11)
23
141
164
(805)
(133)
251
1,632
1,883
313
1,943
2,256
(2,040)
(148)
(1,718)
(1,008)
216
(92)
(5)
16
(7)
(0)
165
(61)
-
130
(40)
(3)
2013
(Rp
billion)
2,358
61,386
(39,463)
21,923
(11,234)
(596)
(202)
229
909
1,138
year ended December 31, 2015 compared to
year ended December 31, 2014.
Corporate Segment
Our corporate segment revenues increase by Rp6,004
billion, or 35.5% and an increased in international IDD
billion, or 20.4%, from Rp29,415 billion in 2014 to
incoming revenues by Rp354 billion, or 16.0%. The
Rp35,419 billion in 2015. The increase was primarily due
increased was offset by decreases of long distance
to an increased in network revenues by Rp4,284 billion,
cellular by Rp89 billion or 2.2% and other local by Rp68
or 101.2%, as a result of increase in leased line revenues
billion or 29.9%. Others telecommunications revenues
by Rp4,144 billion, or 309.9%, transponder revenue
increased by Rp418 billion, or 5.7%, due to an increased
increased by Rp252 billion or 10.1% and international
in call center services revenues by Rp591 billion, or 40.4%
leased line decreased by Rp119 billion or 85.1%. Data and
and decreased in CPE and terminal by Rp225 billion or
internet revenues increased by Rp939 billion, or 10.5%,
24.3%. The increased was offset by decreased in fixed
due to increased in data communication others revenues
wireline by Rp212 billion or 5.6% due to decreased on
by Rp1,037 billion, or 318.4% and decreased in high
local usage by Rp117 billion or 24.5%, long distance
speed internet by Rp86 billion or 8.6%. Interconnection
usage by Rp53 billion or 12.3% and IDD 007 usage by
revenues increased by Rp565 billion, or 11.1%, due to an
Rp22 billion or 16.9%.
increased in international IDD OLO revenues by Rp360
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
Our corporate segment expenses increased by Rp5,642
Our home segment expenses increased by Rp2,451
billion, or 24.9%, from Rp22,663 billion in 2014 to Rp28,305
billion, or 27.4% from Rp8,960 billion in 2014 to Rp11,411
billion in 2015, primarily due to an increased in operation,
billion in 2015. This increase primarily due to an increased
maintenance and telecommunication services expenses
in operation, maintenance and telecommunication
by Rp3,467 billion, or 32.2% as a result of increased in
services expenses by Rp1,932 billion, or 79.2%, due to
operation and maintenance (O&M) expenses by Rp1,210
an increased in terminal/handset expenses by Rp1,071
billion, or 57.9%,
including
increased cooperation
billion, or 258.4%, increased in cooperation expenses by
expenses by Rp771 billion, or 27.2%, leased lines and CPE
Rp552 billion, or 349.6%, increased in leased lines and
expenses by Rp716 billion, or 61.7%, cost of IT services
CPE expenses by Rp403 billion, or 322.2%, offset by
by Rp525 billion, or 146.8%, O&M supporting facilities by
decreased in insurance expense by Rp40 billion or 33.4%
Rp130 billion or 36.0%, transportation by Rp65 billion
and vehicle rent by Rp30 billion or 30.7%. Personnel
or 7.3% and O&M land and building by Rp46 billion or
expenses increased by Rp508 billion, or 15.4%, due to
14.4%. Interconnection expenses increased by Rp779
early retirement program expenses by Rp328 billion or
billion, or 19.4%, as a result of increased in international
100.0%, bonuses expenses increased by Rp231 billion, or
IDD007 interconnection expenses by Rp530 billion, or
35.1%, net periodic post-retirement healthcare benefits
28.1% and Telkom Global international interconnection
increased by Rp81 billion or 192.1% and offset by decrease
expenses by Rp258 billion, or 95.8%. Personnel expense
in net periodic pension costs by Rp156 billion or 51.2%.
increased by Rp534 billion, or 14.9%, due to an increased
Other expense increased by Rp606 billion or 1,444.9%
in early retirement program expenses by Rp246 billion or
100.0%, bonuses expenses increased by Rp179 billion, or
due to increased in penalty and commitment charge
by Rp364 billion or 100.0% and others non-operating
31.7% and personnel expense increased by Rp101 billion
expense by Rp243 billion or 1,151.1%.The increased was
or 16.7%. Others expenses increased by Rp886 billion,
offset by decreased in general administrative expense
or 293.5%, due to penalty and commitment charge by
by Rp291 billion or 19.7% due decreased in provision for
Rp460 billion or 100.0%, income tax expenses by Rp117
impairment of receivables by Rp160 billion or 35.1% and
billion, or 25,415.4%, others non-operating expenses by
training, education and recruitment by Rp119 billion or
Rp265 billion, or 127.3%, and tax expense by Rp33 billion
46.4%. While, depreciation and amortization expense
or 82.9%. Marketing expense increased by Rp49 billion or
decreased by Rp292 billion or 19.5%.
6.7% due to advertising and promotion by Rp43 billion
or 10.2%.
Home Segment
Our home segment revenues increase by Rp2,322 billion,
or 24.8%, from Rp9,349 billion in 2014 to Rp11,671 billion in
2015 mainly due to increased in data and internet revenues
by Rp1,361 billion, or 32.3%, as a result of increased in
data communication others by Rp722 billion, or 26.3%,
increased in Pay TV revenues by Rp341 billion, or 451.7%,
in line with the achievement of the IndiHome subscribers
more than 1 million subscribers, while high speed internet
revenues increased by Rp150 billion, or 4.0% and high
speed internet monthly subscription increased by Rp52
billion or 408.7%. Other telecommunication revenues
increased by Rp1,118 billion, or 164.6%, primarily due to
increased in sale of handset. The increased was offset by
a decreased in other revenue by Rp49 billion or 21.9% and
fixed wireline revenue by Rp25 billion or 0.6%.
personal Segment
Our personal segment revenues increase by Rp9,445
billion, or 14.2% from Rp66,686 billion in 2014 to Rp76,131
billion in 2015, mainly due to an increased in data and
internet revenues by Rp7,083 billion, or 25.7%, due to
increased in cellular data communication revenues by
Rp6,015 billion, or 44.5%, in line with the increase in
Telkomsel Flash subscribers 40.3% from 31.2 million in
2014 to 43.8 million in 2015, payload data increased by
109.6% to 492,245 TB in 2015. Cellular SMS revenues
increased by Rp1,195 billion, or 8.6% as a result of the
successful in cluster based pricing implementation. The
increased is offset by decrease on SMS fixed wireless by
Rp100 billion or 97.0%. Cellular revenues was increased
by Rp3,088 billion, or 9.1%, due to increased in cellular
commitment revenues by Rp2,083 billion, or 28.3%, in
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS line with increased in cellular subscribers by 8.6% to 152.6
The increased was offset by decreased in interconnection
million in 2015, cellular long-distance usage by Rp658
expenses by Rp1,481 billion, or 31.3%, due to decreased in
billion, or 7.0%, celullar feature revenues increased by
Blackberry cooperation expenses by Rp1,078 billion, or
Rp286 billion, or 37.5%.
69.0%, in line with decreased of Blackberry subscribers
by 31.7% to 4.0 million subscribers
in 2015 and
The increased was offset by decreasing in fixed wireless
decreased in cellular to IDD interconnection expense by
revenue by Rp437 billion or 82.5% because termination
Rp331 billion, or 54.1%. General administration expense
Flexi, decrease on local used by Rp119 billion or 71.9%,
decreased by Rp66 billion or 4.1% due to decrease in
long distance usage by Rp266 billion or 89.4% and
collection expense by Rp270 billion or 38.3%, offset by
monthly subscription by Rp49 billion or 78.1%. The other
increased in profesional fees by Rp118 billion or 98.7%,
revenues decrease by Rp110 billion or 50.0% due to
training, education and recruitment by Rp28 billion or
decrease in others non operating income.
Our personal segment expenses increased by Rp6,517
40.6%, social contribution by Rp22 billion or 83.6% and
provision for impairment of receivables by Rp15 billion or
11.3%. Foreign exchange loss decreased by Rp55 billion
billion, or 14.6% from Rp44,786 billion in 2014 to
or 53.5%.
Rp51,303 billion in 2015, primarily due to an increased
in operation, maintenance and telecommunication
services expenses by Rp4,540billion, or 21.9%, due to
the increased in manage capacity service by Rp1,686
billion or 100.0%, increased in O&M power supply
expense by Rp906 billion, or 43.8%in line with growth
in BTS Telkomsel by 20.9% to 103,289 thousands unit in
2015, and O&M transport expenses by Rp749 billion, or
16.2%, O&M radio base station by Rp1,024 billion, or 24%
and rental expense increased by Rp210 billion or 23.2%.
Depreciation and amortization expenses increased by
other Segment
Our other segment revenues increase by Rp373 billion,
or 19.8%, from Rp1,883 billion in 2014 to Rp2,256 billion
in 2015, mainly due to an increased in leased revenues
by Rp225 billion, or 20.8%, due to increased in building
maintenance revenue by Rp193 billion, or 20.5% and
building leased revenues by Rp28 billion, or 22.6%. Other
telecommunication increased by Rp148 billion or 18.4%
due to others revenues increased by Rp72 billion, or
329.1%, transport management service revenues increased
Rp2,460 billion, or 20.4%, mainly due to an increased
by Rp50 billion, or 40.1%, and security service revenues
in depreciation transmission installation and equipment
increased by Rp44 billion, or 13.6%. The increased was
by Rp1,771 billion, or 21.8% and amortization by Rp226
offset by decreased on project management revenue by
billion, or 67.3%, increased in depreciation leased assets
Rp30 billion or 13.7%.
by Rp216 billion or 34.1%, increased in depreciation
of building by Rp20 billion or 76.6%, depreciation
Our other segment expenses increased by Rp322 billion,
cable network by Rp55 billion or 103.9%, depreciation
or 18.7%, from Rp1,718 billion in 2014 to Rp2,040 billion in
switching by Rp13 billion or 1.1%, depreciation of lease
2015 mainly due to an increased in operation, maintenance
hold by Rp17 billion or 34.5% and depreciation of vehicles
and telecommunication service expense by Rp246 billion,
by Rp3 billion or 11.4%. Personnel expenses increased by
or 16.7%, due to an increased in cooperation expenses
Rp1,091 billion, or 39.9%, primarily due to an increased in
Rp112 billion, or 71.7%, vehicles rental and supporting
bonuses expenses by Rp497 billion, or 87.2%, increased
facilitiesby Rp42 billion, or 43.9%, electricity, gas and
in employees income tax expenses by Rp200 billion,
water expenses by Rp44 billion, or 6.8%, and security
or 44.6%, early retirement program expenses by Rp216
operational expenses Rp44 billion, or 15.7%.
billion or 100% and long service award increased by
Rp190 billion or 165.5%.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
Depreciation expenses increased by Rp31 billion, or 50.8%, mainly due to an increased in depreciation power supply,
depreciation vehicles, and depreciation building. General and administration expense increased by Rp20 billion, or
53.6%, was primarily due to increased in provision for impairment of receivables by Rp5 billion, or 2,793.9%, meeting
expenses by Rp4 billion, or 155.7%, and professional fees expenses by Rp3 billion, or 224.0%. Personnel expenses
increased by Rp16 billion, or 12.9%, due to increased in outsourcing expenses by Rp6 billion, or 11.9%, bonuses expenses
by Rp4 billion, or 61.9%, pension assistance expense by Rp3 billion, or 158.9% and incentives expenses by Rp2 billion, or
20.8%, meanwhile marketing expenses increased by Rp2 billion, or 19.7%, due to increased in representation expenses.
Segment revenues Comparison
revenues 2015
(in billion rupiah)
revenues 2014 (restated)
(in billion rupiah)
35,4
1
9
7
6
.1
(
2
8
2 ,256 (1.8%
31.61%
.
2
%
)
)
29,4
1
5
, 8 83(1.8%)
1
(
2
7
.
4
%
)
)
%
9,349(8.7
% )
)
%
11.671 (9,3
76,131 ( 6 0 . 7
% )
66,686 ( 6 2 . 1
Segment expenses Comparison
expenses 2015
(in billion rupiah)
expenses 2014 (restated)
(in billion rupiah)
2
8,3
2
2,
6
2 ,040 (2.2
0
5
(
3
0
.
4
%
)
%
)
1 , 718 (2.2%
)
6
3
(
2
9
.
0
%
)
1, 4 11 (12.3%)
51,303 (55.1 % )
1
Personal
Corporate
Home
Others
%)
6 0 (11.5
8 , 9
4
4,786 (57.3 % )
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
LEAD THE CHANGES,
OTHERWISE YOU MIGHT BE
THE VICTIM OF THE CHANGE !
- ALEX J. SINAGA -
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Segment results Comparison
Segment result 2015
Segment result 2014 (restated)
6,7
5
2
(
2
1 6 5 (0,6%)
3
.
1
%
)
)
%
389 (1.3
2
1,9
0
0 (75.0%)
7,11
4
(
2
1
.
9
%
)
2 16 (0.7%)
)
%
260 (0.8
2
4,8
28 (76.6%)
Personal
Corporate
Home
Others
year enDeD DeCeMber 31, 2014
CoMpareD to year enDeD
DeCeMber 31, 2013.
Corporate Segment
Our corporate segment revenues increased by Rp3,825
Our corporate segment expenses increase by Rp2,288
billion, or 14.9%, from Rp25,590 billion in 2013 to
billion, or 11.2%, from Rp20,375 billion in 2013 to Rp22,663
Rp29,415 billion in 2014. The increase was mainly due to
billion in 2014, primarily due to an increased of Rp1,219
an increased in others telecommunications services by
billion, or 12.9% in operating and maintenance expenses
Rp1,855 billion, or 41.1%, was reflect by an increased in
as a result of higher tower rent expenses Rp599 billion,
tower lease revenue by Rp678 billion, or 34.1%, in line with
or 129.2%, as well as an increased in tower lease revenue,
growth in BTS number by 31.2% and tower tenats by 31.4%,
site operating expense by Rp300 billion, and managed
Customer Premise Equipment (“CPE”) also increased by
services expense Rp292 billion, or 1928.1%. Depreciation
Rp342 billion, or 29.1%, management service revenue
expense increased by Rp276 billion, or 11.4% due to the
by Rp391 billion, or 1,261.7%, and E-payment revenue
increased in depreciation of equipment and installation of
to Rp341 billion, or 180.7%. An increased in network
transmission by Rp186 billion, or 33.7%, and depreciation
revenue by Rp694 billion, or 18.6%, due to the increased
expense of power supply Rp115 billion or 50.7%.
in transporder revenue by Rp691.9 billion, 41.7%. Data and
Interconnection expenses increased Rp178 billion, or
internet revenue increased by Rp554 billion, or 8.1%, due
4.6%, due to the increased in cellular long distance transit
to an increased in Astinet revenue of Rp390 billion, or
interconnection expense by Rp121 billion, or 20.3% and
71.2%, and Metro E revenue by Rp430 billion or 43.3%.
Telkom Global 017 interconnection charges by Rp109
Interconnection revenues increased by Rp394 billion, or
billion, or 68.4%, and the decline in foreign exchange loss
7.0%, due to the increased in our wholesale voice revenue
by Rp616 billion, or 92.5%.
by Rp146 billion, or 25.1%, IP Transit revenue by Rp130.8
billion, or 16.8%, SLI 007 incoming interconnection
revenue of Rp91 billion or 6.1%. Wireline revenue increased
Home Segment
Our home segment revenues decrease by Rp114 billion,
Rp309 billion, or 6.6%, due to the increase in call center
or 1.2%, from Rp9,463 billion in 2013 to Rp9,349 billion
by Rp393 billion, or 33.9%.
in 2014 mainly due to the decline in wireline revenues
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
by Rp399 billion, or 8.6% decrease in local usage.
in outsourcing. Land and buildings expense increased
This decrease was partially offset by the increased in
by Rp270 billion, or 65.5%, in line with the increased in
data and internet revenues by Rp287 billion, or 8.0%,
the number of BTS and GraPARI. USO expense increased
due to the increased in speedy revenue in line with
by Rp222 billion, or 29.4% and lease building expense
the customer growth from 3,013 thousand to 3,400
increased by Rp159.2 billion, or 21.9%.
thousand, or 12.8%, in 2014.
Our home segment expenses increase by Rp75 billion,
Impairment of fixed assets increased Rp209 billion, or
or 0.8% from Rp8,885 billion in 2013 to Rp8,960 billion
35% due to the increased in depreciation of equipment
in 2014, primarily due to a decreased in other income by
and installation of transmission by Rp1,279 billion, or
Rp511 billion, or 70.6%, and a decrease in the difference
18.6%, were offset by a decreased in depreciation expense
of fair value investments Rp228 billion, or 98.3%. This
lease assets - equipment and installations transmission by
Depreciation expense increase Rp837 billion or 7.45% and
decreased was offset by a decreased in operating
Rp264 billion, or 29.5%.
expense by Rp266 billion, down 2.9%, due to a decreased
in personnel expense Rp461 billion, or 12.4%, due to a
decreased in bonus expense by Rp200 billion, or 23.3%,
other Segment
Our other segment revenues increase by Rp745 billion, or
and net periodic post-retirement healthcare expense by
65.5%, from Rp1,138 billion in 2013 to Rp1,883 billion in 2014
Rp170 billion, or 80.2%.
personal Segment
Our personal segment revenues increase by Rp5,300
mainly due to an increase in building management revenue
by Rp499 billion, or 112.6%, due to the addition of building
management combine with energy management, and
additional rental of completed buildings. Total area of the
billion, or 8.6% from Rp61,386 billion in 2013 to Rp66,685
building being leased in 2014 increased by 5.5%, transport
billion in 2014, mainly due to the increased in data and
management services revenue increased by Rp66 billion,
internet revenues by Rp4,270 billion, or 18.3%, which
or 116.8%. Security services revenue increased by Rp55
increased in Telkomsel cellular data by Rp4,007 billion, or
billion, or 20.6%, due to the addition of personnel and an
38.6%, parallel with the increase in 67.9 million, or 48.3%,
increase in the UMR in 2014, and management projects
the number of subscribers (including pay as you use)
revenue increased by Rp50 billion, or 29.6%.
subscribers. Payload data traffic increased to 234.862 TB,
or 142.9%. Rp547 billion, or 4.2%, increased in our SMS
Our other segment expenses increase by Rp710 billion,
revenue. Revenue in mobile increased by Rp2,035 billion,
or 70.4%, from Rp1,008 billion in 2013 to Rp1,718 billion
or 6.3%, due to an increase in cellular monthly subscription
in 2014 mainly due to an increased in operating and
revenue by Rp1,200 billion, or 17.8%, mobile long distance
maintenance expense by Rp652 billion, or 79.0%, due
revenues increased by Rp487 billion, or 5.4%, and Rp380
to the increased in electric by Rp494 billion, or 345.8%,
billion, or 2.7%, in local cellular. Supported by the increased
increased in security services expenses by Rp40 billion,
in mobile subscribe by 6.9% from 131.5 million in 2013 to
or 17.2%, due to the addition of personnel and salary
140.6 million in 2014. Chargable MoU increased by 15.0%
increased as a result of the minimum wage property
to 161.4 billion minutes in 2014.
expense Rp71.3 billion, or 22.2% because of property
sale. The increased was also due to an increased in the
Our personal segment expenses increase by Rp5,323
personnel expenses by Rp27 billion, or 28.7%, due to an
billion, or 13.5% from Rp39,463 billion in 2013 to Rp44,786
increase in outsourcing expense.
billion in 2014, primarily due to the increased in operation
and maintenance expenses by Rp4,192 billion, or 25.4%,
due to the increased of antenna and tower expense by
Rp1,014 billion, or 40.8%, and radio base station expense
by Rp446 billion, or 11.7%, due to the growth of BTS
number by 22.3% from 69,864 unit in 2013 to 85.420 units
in 2014. Increased in leased line expense by Rp799 billion,
or 8,027.4%, an increased in satellite transmission expense
by Rp411 billion, or 9,724.6%, Rp432 billion, or 5,714.3%,
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Segment revenues Comparison
revenues 2014 (restated)
revenues 2013
2
9,
4
1
5
(
2
1 , 883 (1.8%
)
7
.
4
%
)
%)
9 ,3 4 9 (8.7
6
6,686 (62.1 % )
2
5,5
9
0
(
2
6
.
2
%
)
%)
9,4 63 (9.7
1 ,138 (1.2%
)
61,386 (62.9 % )
Segment expenses Comparison
expenses 2014 (restated)
expenses 2013
2
2,
6
1 , 718 (2.2%
)
6
3
(
2
9
.
0
%
)
2
0
,
3
7
5
(
2
%
)
9
.
2
%
)
1 , 008 (1.4
0 (11.5%)
6
8 , 9
4
4,786 (57.3 % )
Segment results Comparison
expenses 2014 (restated)
5 (12.7%)
8
8 , 8
3
9,463 (56.6 % )
expenses 2013
6,7
5
2
(
2
3
.
1
%
)
1 6 5 (0.6%)
%)
3 89 (1.3
5,215 (1
8
.
7
%
)
1 3 0 (0.5%)
578 (2.1%)
2
1,9
0
0 (75.0%)
2
1,9
2
3 (78.7%)
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
MarKeting Strategy
We have implement a comprehensive marketing strategy to bolster our brand and to boost sales as well, including
through marketing communication activities and product and service distribution channel development.
We implement a “paradox marketing” framework in managing our marketing as illustrated in following diagram:
private
p
U
b
l
i
C
pUbliC
plaCe
Community Based Channel Partnership
“Buyer as a Seller”
Main taCtiC: “tHe top”
proDUCt
Bundling of
(Connectivity + Content)
“Commodity
customization”
priCe
Small Domination
“perceptions are
More important
than reality”
p
r
o
ConSUMer
D
U
enterpriSe
C
t
retail
p
r
i
C
e
WHoleSale
proMotion
Social Networking
Based Promotion
“low budget
high impact”
p
r
SoCial
o
M
o
perSonal
t
i
o
n
SUpporting taCtiC: “tHe pillarS”
SegMentation
Community Based -
Horizontal-Vertical-Cluster
targeting
End to end Solution Infografer
poSitioning
“More for Less”
Mass Customization
Strategy: “tHe foUnDation”
In our implementation of the “paradox marketing”
The IndiHome package includes high speed internet
framework as illustrated above, the “more for less”
services of up to 100 Mbps, and domestic calls (which
concept is based on the value preposition of the
may include, depending on the specific package, a
products and services we offer to customers, with the
limited amount of free domestic calls). The interactive TV
aim that customers can acquire more relevant benefits
service, which is supported with IPTV (internet protocol
at a lower price compared to our competitors, with mass
television) technology, provides customers with a new
customization that is in line with customers’ requirements
flexible way to watch television that allows customers
for our products and services.
to pause, rewind and replay content, and also to select
and watch re-runs of TV programs which has aired up
In the consumer segment business portfolio (which
to 7 days before. The IndiHome package also includes
includes consumer home services and consumer personal
free unlimited music streaming from MelOn digital music
services), in 2015, we introduce the new IndiHome service,
which bundles in all in one packages at a competitive
service and three-months free antivirus protection. In
addition, we have also developed additional or add-
price services consisting primarily of broadband Internet,
on services to provide more benefits to the customers,
fixed line residential phone, and interactive TV services.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES such as IndiHome Telephone Mania, an unlimited voice
3. Smart Business Portfolio Unlocking, which
is a
call plan from a home phone to any Telkomsel phone
business and customer portfolio development strategy
numbers, IndiHome Global Call, an international call
that includes customer experience enhancement and
plan with special prices to selected favourite destination
service quality enhancement.
countries, and Seamless wifi.id, an add-on service for
IndiHome customers to enjoy unlimited internet access at
4. Telkom Group Business Synergy improvements, a
all Indonesia wifi access points in Indonesia. To provide
strategy aimed at enhancing synergies within Telkom
the best experience to our customers, we have also
Group businesses by exploiting the competitive
focused on the latest infrastructure technology based on
advantages of different subsidiaries, covering pricing
a fiber optic network, which provides more reliable, stable
synergy, product/solution synergy and channel/
and robust connectivity, that is deployed as part of the
promotion synergy within the Telkom Group;
Indonesia Digital Network.
5. High End Market Focus and Differentiation Strategy,
The IndiHome service was developed based on the “more
a strategy relating to the implementation of brand
for less” strategy framework, whereby customers get
and marketing communications, including marketing
more benefits with less cost compared to the cost of the
program for new products/solutions
individual services, and which we believe is an example
of our focus on value innovation to strengthen our
6. International MNC Expansion (IMEX), a strategy to
positioning and differentiation compared to competitors.
provide ICT solutions for Indonesian multinational
their business
companies
that are expanding
In the corporate segment business portfolio (which
internationally;
includes enterprise, government and business customers),
we have 10 primary marketing strategies, as outlined
below:
1. Enhancing Center of Excellence Strategy, which relates
to development of human resources, and particularly
the development of account management teams;
7. Building a Paradox Business Model for Enterprise
Segment, a strategy aimed at developing the paradox
business model for enterprise customers to create a
digital ecosystem with mutual benefits for entities;
8. Enhancing the Indonesia Digital Convergence Program
(INDICO) Program, which is a derivative program of the
2. New Enterprise Business Development Process, a
strategy relating to our business development process
Indonesia Digital Network (IDN) program, but focused
more on the development of digital convergence
for the enterprise market, covering strategic account
technology for the enterprise market;
management, CRM enhancement, customer service
and team incentives;
9. Synergizing
integrated Ecosystem Business
in
Enterprise Market, a strategy to strengthen our position
in the enterprise market by providing solutions based
on the customer’s ecosystem, including deploying
Fiber to the High End Market (FTTHEM) to support the
ecosystem business; and
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS 10. Transforming Emerging Business Portfolio
for
– kartuHALO is a postpaid mobile telecommunications
Enterprise Market, a strategy to prepare for the
service for the premium, professional and corporate
emergence of new business portfolios resulting from
market segment. kartuHalo offers two package
dynamic business changes in the enterprise market.
options for customers, namely, HaloFit My Plan and
HaloFit Hybrid.
We implemented a revised marketing strategy in early
2015 in the wholesale and international segment business
– simPATI is a prepaid service that targets the
portfolio, which we believe is a disruptive strategy that
needs of the middle class market segment to
aims to create a new equilibrium point on domestic
provide a high quality telecommunication service,
and international wholesale business by increases the
through the purchase of starter packs and top up
international traffic sources through attractive business
vouchers. simPATI offers simPATI Discovery and
schemes and models both for the wholesale and retail.
simPATI Social Max packages, which have various
For example, we create a partnership with several global
promotional packages from time to time.
partners who have customer base to accommodate
the retail activity of both parties. We and Telkomsel
– Kartu As is a prepaid service targeting the lower
have entered into agreements with various foreign
middle class market segment, and offers a more
telecommunications operators that have subscriber bases
attractive price compared to simPATI.
to cap wholesale interconnection revenue and/or cost.
Such revenue and/or cost cap allows operators to offer
promotional schemes to their customers for international
– Loop is a prepaid service targeting the youth
segment through the provision of attractive data
voice traffic. The scheme has generally received a positive
packages.
response from International wholesalers and resulted in
increasing international voice traffic. We believe this is
Our mobile broadband services, which are marketed
an example of our innovation in the traditional fixed-line
under the Telkomsel Flash name, is supported by LTE/
voice business, wheretraffic has been declining.
HSDPA/3G/EDGE/GPRS technology. As of December
31, 2015, we had 43.8 million Telkomsel Flash
subscribers, compared to 31.2 million subscribers as of
proDUCt overvieW
The following is a brief overview of each of our six product
December 31, 2014.
portfolios.
telecommunication business
1. Mobile services
Our mobile products portfolio comprises mobile
We launched 4G services in December 2014, with initial
coverage in Jakarta and Bali, and were the first operator
in Indonesia to launch 4G services commercially. In 2015,
we continued to deploy 4G/LTE services in more cities,
with 2.2 million 4G/LTE subscribers and covering 14 cities
voice, SMS and value-added services, as well as
with 17,869 BTS as of December 31, 2015.
mobile broadband. We provide mobile or cellular
communications services with GSM
technology
Our total mobile cellular subscriber base increased from
through our subsidiary, Telkomsel. Mobile services
140.6 million subscribers, comprising 2.9 million postpaid
(including mobile data services) remained the largest
subscribers and 137.7 million prepaid subscribers, as of
contributor to our consolidated revenues in 2015.
December 31, 2014 to 152.6 million subscribers, comprising
Our postpaid mobile services are marketed under
the brand kartuHalo and our prepaid services, which
comprise almost 98% of our mobile subscribers, are
marketed under the brands simPATI, Kartu As and Loop.
3.5 million postpaid subscribers and 3.5 million prepaid
subscribers, as of December 31, 2015, an increase of 8.6%
or 12.1 million subscribers.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
2. fixed services
Our fixed product portfolio comprises fixed voice and
fixed broadband services.
In 2015, we continued to actively promote our “more
for less” program, which aims to provide customers
with more relevant benefits at a lower price through
bundling services. Our bundling program is marketed
under the commercial name IndiHome, which bundles
in all in one packages at a competitive price services
consisting primarily of broadband Internet, fixed line
residential phone, and interactive TV services.
Wholesale telecommunications services comprise
primarily
interconnection services, as well as
network services, Wi-Fi, VAS, hubbing, data center
& content platform, data & internet, and solutions.
We earn revenue from interconnection services
from other telecommunications operators that
utilize our network
infrastructure
in
Indonesia,
both for calls that end at or transit via our network.
Similarly, we also pay interconnection fees to other
telecommunications operators when we use their
networks to connect a call from our customers.
Interconnection services that we provide to other
telecommunications operators comprise domestic
As of December 31, 2015, we had 10.3 million fixed
and international interconnection services.
voice lines in service, and 4 million fixed broadband
subscribers.
We also have limited operations and/or interests
in a number of
international
jurisdictions
in
We terminated our Flexi service on May 31, 2015
telecommunications or data related areas, namely,
although the previous subscribers were able to use
their old Flexi telephone numbers till December
2015. In total, we migrated a total of over 1.3 million
subscribers to Telkom under our migration program.
3. interconnection & international traffic
Our interconnection and international traffic product
portfolio
includes wholesale
telecommunications
services and our international business which is
conducted through our subsidiary Telin.
- Singapore,
through Telekomunikasi
Indonesia
International Pte. Ltd. (“Telin Singapore”), where
operate as a facility based operator and as a
telecommunication provider, and are permitted to
conduct infrastructure development;
- Hong Kong, through Telekomunikasi
Indonesia
International Ltd. (“Telin Hong Kong”), where we
are a mobile virtual network operator (“MVNO”),
operate a GraPARI center for Indonesian workers
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and provide wholesale voice, wholesale data and
as well as providing earth station satellite up linking and
retail mobile services;
down linking services for domestic and international
- Macau, through Telkom Macau Limited, where we
users.
provide retail mobile services;
- Timor Leste, through Telekomunikasi Indonesia
We are currently in the process of developing the
International (TL) S. A.(“Telin Timor Leste”), where
Telkom-3S satellite, which is currently planned for
we provide cellular voice and broadband internet
launch in late 2016. We have also entered into another
services, corporate solutions as well as wholesale
contract for the procurement of a Telkom-4 satellite,
voice and data;
which is currently planned for launch around the end
- Australia,
through Telekomunikasi
Indonesia
of 2017, as a replacement for Telkom-1.
International Pty Ltd. (“Telkom Australia”), where we
provide business process outsourcing, information
We manage our satellite business through our
technology outsourcing, and IT services;
subsidiaries, Metra and Patrakom.
- Myanmar, through a branch office, where we
support the
implementation of Myanmar via
Tower
Mumbai, India International network project, and
Through our subsidiary, Mitratel, we lease out space
also observe the telecommunication business
to other operators to place their telecommunications
potential in the country;
equipment on these towers for which we receive a fee.
- Malaysia,
Indonesia
International Malaysia Sdn. Bhd. (“Telin Malaysia”),
Telekomunikasi
through
where we have a minority interest in a joint venture
providing MVNO services;
information business
5. Digital enterprise product portfolio
Our digital enterprise product portfolio, which focuses
- Taiwan, through Telkom Taiwan Limited, where we
on the information business, includes the following.
provide retail mobile services;
- United States of America, through Telekomunikasi
(“Telkom
International
Indonesia
(USA)
Inc.
Information and Communications Technology (ICT)
Platform
USA”), where we undertake businesses relating to
- Enterprise connectivity, including fixed voice, fixed
telecommunications products, telecommunication
broadband, IP-VPN, lease channel (LC), ethernet,
services,
information
technology,
information
and managed network services;
technology products and information technology
-
IT services,
including system
integration,
IT
services;
outsourcing, premises integration, and professional
- Saudi Arabia, through a branch office, where we
provide MVNO services and operate a GraPARI
center for Indonesian pilgrims.
services;
- Data center & cloud,
including data center
(EDC, colocation, hosting, DRC, CDN) and cloud
(Infrastructures as a Service (“laaS”), Software as a
4. network infrastructure
Our network infrastructure product portfolio includes
Service (“SaaS”), and UcaaS);
- Business Process Outsourcing (BPO) services; and
satellite operations and tower operations.
- Devices/hardware, which offer hardware sales/
Satellite
Our satellite operations consist primarily of leasing
satellite transponders capacity to broadcasters and
Smart Enabler Platform
- Payment, which offers bill payment, online payment
operators of VSAT, cellular and IDD services and ISPs,
gateway, e-money, and direct carrier billing;
support (CPE trading, CPE services, and IT security).
- Digital advertising, including digital out-of-home,
mobile advertising, digital agency & analytics
solutions; and
- Big data & other smart enablers, which offer
platform services.
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Media and edutainment business
6. Digital Consumer
Our digital consumer business portfolio comprises
− Multimedia services tariff, with the following traffic
structure:
− Activation fee
primarily media and edutainment services offered to
− Monthly subscription charges
consumers such as e-commerce services, video/TV
services (pay TV, IPTV and over the top (OTT) TV),
and digital mobile services (game, music and mobile
digital life services).
overvieW of teleCoMMUniCation
rateS
Under Law No.36 Year 1999 and Government Regulation
− Usage charges
− Additional facilities fee
c. interconnection tariffs
The Indonesian Telecommunication Regulatory Body
(“ITRB”), in its letter No.262/BRTI/XII/2011 dated
December 12, 2011, decided to change the basis for SMS
interconnection tariff to cost basis with a maximum
tariff of Rp23 per SMS effective from June 1, 2012, for
No.52 Year 2000, tariffs for operating telecommunications
all telecommunication provider operators.
network and/or services are determined by providers
based on the tariff type, structure and with respect to the
Based
on
letter
No.118/KOMINFO/DJPPI/
price cap formula set by the Government.
a. fixed line telephone tariffs
The Government has issued a new adjustment tariff
formula which is stipulated in the Decree No.15/
PER/M.KOMINFO/4/2008 dated April 30, 2008 of
the Ministry of Communication and Information
(“MoCI”) concerning “Mechanism to Determine Tariff
PI.02.04/01/2014 dated January 30, 2014 of the
Director General of Post and Informatics, the Director
General of Post and Informatics decided to implement
new interconnection tariff effective from February 1,
2014 until December 31, 2016, subject to evaluation on
an annual basis. Pursuant to the Director General of
Post and Informatics letter, the Company and Telkomsel
are required to submit the Reference Interconnection
of Basic Telephony Services Connected through
Offer (“RIO”) proposal to ITRB to be evaluated.
Fixed Line Network”.
Under the Decree, tariff structure for basic telephony
services connected through fixed line network consists
of the following:
- Activation fee
- Monthly subscription charges
- Usage charges
- Additional facilities fee
b. Mobile cellular telephone tariffs
On April 7, 2008, the MoCI issued Decree No.09/
PER/M.KOMINFO/04/2008
regarding
“Mechanism
to Determine Tariff of Telecommunication Services
Connected through Mobile Cellular Network” which
provides guidelines to determine cellular tariffs with
a formula consisting of network element cost and
retail services activity cost. This Decree replaced the
previous Decree No.12/PER/M.KOMINFO/02/2006.
Under MoCI Decree No.09/PER/M.KOMINFO/04/2008
dated April 7, 2008, the cellular tariffs of operating
Subsequently, ITRB in its letters No.60/BRTI/III/2014
dated March 10, 2014 and No.125/BRTI/IV/2014 dated
April 24, 2014 approved Telkomsel and the Company’s
revision of RIO regarding the interconnection tariff.
Based on the letter, ITRB also approved the changes to
the SMS interconnection tariff to Rp24 per SMS.
d. network lease tariffs
Through MoCI Decree No.03/PER/M.KOMINFO/1/2007
dated January 26, 2007 concerning “Network Lease”,
the Government regulated the form, type, tariff
structure, and tariff formula for services of network
lease. Pursuant to the MoCI Decree, the Director
General of Post and Telecommunication issued its
Letter No. 115 Year 2008 dated March 24, 2008
which stated “The Agreement on Network Lease
Service Type Document, Network Lease Service Tariff,
Available Capacity of Network Lease Service, Quality
of Network Lease Service, and Provision Procedure of
Network Lease Service in 2008 Owned by Dominant
Network Lease Service Provider”, in conformity with
telecommunication
services connected
through
the Company’s proposal.
mobile cellular network consist of the following:
− Basic telephony services tariff,
− Roaming tariff, and/or
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e. tariff for other services
The tariffs for satellite lease, telephony services,
DiStribUtion CHannelS
and other multimedia are determined by the service
The following are the primary distribution marketing
provider by taking into account the expenditures and
channels for our products and services:
market price. The Government only determines the
tariff formula for basic telephony services. There is no
stipulation for the tariff of other services.
proMotional StrategieS
1. plasa telkom and grapari
Outlets that function as walk-in customer service
points, where customers have access to the full range
of Telkom and Telkomsel’s respective products and
services,
including billing, payment, subscription
cancellation and promotion to complaint handling. As
Our first strategy with respect to promotion
is
of December 31, 2015, we managed 572 Plasa Telkom
personalized socializing. This strategy involves the use
outlets and 414 GraPARI outlets in Indonesia and two
of social media as part of a conventional campaign with
GraPARI in Hong Kong and Singapore, and had an
the aim of increasing customer engagement through a
additional 327 GraPARI outlets which were managed
more customized approach. Our second promotional
by third party business partners.
strategy is social personalizing where we seek to get the
benefits of a mass media campaign to have a wide reach
Several of the GraPARI outlets operate on a 24 hour
and increase the awareness of our products and brands
basis. We also operate 392 mobile GraPARI outlets
among potential customers, while still maintaining high
which are sales points located in vehicles which can
engagement and participation.
travel to reach customers across the country.
Promotion
strategy
in
the corporate
segment
(enterprise & business service) implemented by using
2. Contact centers
Contact centers that support our customers’ ability to
Telkom Solution as an umbrella brand for the micro,
access certain of our products and services, including
small, medium enterprise segment (“MSME”). Our
make billing enquiries, submit complaints, and access
strategy to implement the strategy paradox marketing
certain promotions and service features. We operate
as an approach in the enterprise market and MSME
24-hours contact center facilities in five cities, namely
which has the characteristics of high competition and
Medan, Jakarta, Bandung, Makassar and Surabaya.
high demanding customers. Telkom using strategic
account management for corporate customers through
In 2015, inbound calls to our contact centers have
competent account managers. Account managers
generally been decreasing due to changes in methods
as a customer advocacy assigned to maintain the
used by the customers in seeking out product
relationship as well as a partner for customers to
information, subscribing or submitting complaints,
promote and communicate the appropriate solution for
from voice calls to online requests on our websites.
the customers. While for MSME, we optimize the omni
channel by optimizing social media and big data analysis
for products and solutions promotion. Telkom using
3. partnership Stores
Partnership stores are extensions of our distribution
the approach through the MSME communities which
channels, in cooperation with a variety of third party
managed through www.smartbisnis.com.
marketing outlets such as computer or electronic
stores, banks, and others.
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To increase sales, we also use above and below the line
marketing channels to promote our services to certain
parties and communities. We also continue to place
advertisement in printed and electronic media and
9. Channel partner
Serving as a reseller that helps the Enterprise Serivice
Division in the sales and marketing activities to seek
specific customers requirements (usually
in the
implement marketing methods such as point of sales
business district).
broadcasting as well as promotion and sponsorship
events. In line with shifting consumer behavior and
lifestyles, we have also actively developed national
scale partnerships with several partners such as
Intel and Bank BTN. Through the partnership, we sell
10. value added reseller (var)
A main line to manage partnership relation with
communities through interaction with the community
business partners either community-based segment/
bundle-based products at our partners’ sales outlets.
industry or community-based territory.
4. feet on the Street
Sales agents that conduct direct marketing of our
products, particularly for our IndiHome products,
11. Digital touch point
It may be either Web or Mobile Application Based
Channel which are Network Marketing Channel and as
through door-to-door sales, open table discussions,
a channel for the entire customer portfolio.
exhibitions, product demonstrations, and other
similar activities.
5. authorized dealers and retail outlets
Distribution outlets for a variety of telecommunication
products such as Speedy Instant cards, starter packs,
12. Website
Our website, www.telkom.co.id and www.telkomsel.
com enables customers to access certain of our
products and services. Available services include
e-billing registration, collective billing registration and
prepaid SIM cards and top-up vouchers. These dealers
submission of complaints.
are non-exclusive, and they receive a discount on all of
the products they receive. Retail outlets also include
outlets jointly operated by us, Telkomsel and PT Pos
Indonesia, as well as other outlets such as banks.
6. account Manager
Manage
relationships and account portfolio of
13. Social Media
We use social media, primarily Facebook and Twitter,
to enable the customers to interact with us regarding
our products and services.
large-scale corporate segment (large enterprise),
ServiCe to CUStoMerS
government, and medium-scale businesses.
7. Sales Specialist
A team formed with a high competence as well
As a form of implementing good corporate governance
(“GCG”) towards customers and the public, we continue
to maintain communication with our customers. We
as having a deep product knowledge in order to
believe that efficient and proactive communication
provide appropriate and effective recommendations
has an important role to play in the sustainability of
of solutions to corporate customers together with
the Company’s business, as well as to ensure above-
Account Manager.
standard quality.
8. tele account Management
We also provide a Tele Account Manager service to
support MSME customers or prospective business
customers through inbound and outbound calls for pre-
sales, sales and other customer services requirements.
Service Delivery
To control service delivery, in particular those related
to network infrastructure, the management of SLA with
the functional division in NITS becomes very crucial. The
execution of a Service Level Agreement (SLA) with NITS
is conducted by Telkom Regional with the supervision of
NITS through Integrated Operational Control (IOC).
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The service delivery process for standard products and
basic products uses the available organizational functions,
Customer protection
Throughout 2015, we continue to pursue a variety of
while the service delivery for customized solutions
initiatives and improvements in the field of products
and ecosystem solutions requires a Project Manager to
safety management, after-sales warranty and complaints
manage the end to end process delivery.
services to provide convenient and guarantee customers
The SLA requested to the process delivery support for
protection, among others:
standard products and basic products shall use a SLA that
a. Ensuring that a newly developed product can be
is in accordance with the standards as set forth for each
product. While for customized solutions and ecosystem
solutions, we use specific SLAs or SLAs that are in
accordance with what has been set forth in a contract.
Service assurance
Standard products and basic solutions uses standard
Service Legal Guarantees (SLG) as set forth in the
product document, while customized solutions and
the right commercial product that is well received in
the market. We apply a standard guideline for the
implementation of the incubation process of innovation
products through the stages of: idea submission,
customer and idea validation, product validation,
business model validation and market validation.
b. Holding the principle to ensure that the products
and services are of high quality and able to provide
maximum benefits as well as to contribute to economic
ecosystem solutions require specific SLGs or SLGs
growth.
that are in accordance with what has been set forth
in a contract with a customer. For problem handling
c. Always upholding the code of conduct in product sales
(direct sales), advertising and promotion.
management, Telkom uses contact centers managed by
d. Applying ethical advertising practices by taking into
each customer segment.
account the applicable advertisement code of ethics in
Indonesia.
Engineers on Site (EoS) assist in problem handling
e. Ensuring that the products and after-sales services are
activities located at the customer’s location or at a
conveniently available to the public.
Telkom office in accordance with the type of allocation.
f. Supporting the implementation of fair competition
EoS are divided into 2 (two), namely Shared EoS and
practices and principles.
Dedicated EoS. Shared EoS may be utilized by several
g. Always oriented towards customer satisfaction.
customers and are usually used to accommodate the
h. Constantly striving to meet required benchmarks
needs of standard products and basic solutions. Further,
Dedicated EoS are placed at the location of a customer to
assist the customer in problem handling in general, as well
as to support delivery activities. Meanwhile, the allocation
of dedicated EoS are usually designated for Top Priority
Customers and may also be allocated based on product
as stipulated in various Ministerial Regulations that
govern services quality standards, namely the Minister
Regulation regarding Achievement of Local Fixed Line
Services, SLJJ Fixed Line, International Network Fixed
Line, Fixed Wireless Access (FWA) Fixed Line, and
Teleponi Internet Services Quality Standards for Public
type as has been applied for customized solutions and
Interest (ITKP).
ecosystem solutions.
i. Providing compensation if services do not comply with
the required benchmarks.
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a bank (Bank Mandiri). The benefits and advantages
obtained by customers cover:
Services quality measurement is performed at several
a) an offer on Telkom bill payment using a Mandiri
stages in accordance with the services process. In the
Credit Card;
process of interaction with distribution channels, mystery
b) an offer on promotional packages to cross-sell and
shopping and mystery calling activities are performed
product upgrade;
to ensure that the standard of services is implemented
c) a special sales promotion offer for Mandiri Credit
with quality and consistency. The indicator of such
Card customers.
measurement is a Service Quality Index which is monitored
•
Integrated Customer Care Centre (IC3) Tools
and evaluated monthly. Each year, Customer Satisfaction
and Loyalty Survey (CSLS) is perfomed by way of end-
to-end method. The measured indicators are Customer
Satisfaction Index (CSI), Customer Dissatisfaction Index
(CDI) and Customer Loyalty Index (CLI). These indicators
measure customers’ satisfaction level on 4 (four) pillars,
which consist of products, price, promotions and services.
In addition to the measurement on those indicators,
Is an innovation that is implemented in order to
expedite the handling of disruptions that occur to
corporate customers that consist of a disruption
handling dashboard and SLG Online. This dashboard
can help speed-up the handling of disruptions
process directly, thereby strenghtening Telkom’s
position as the largest telecommunication services
provider that always provides prime and reliable
services as well as providing services in line with its
improvement priorities of the above four pillars services
promises to the customers.
attributes is mapped, so that an evaluation and follow-
up can be carried out efficiently toward services quality
improvement and customers’ satisfaction.
Services Quality improvement programs
Our programs to improve the quality of services and
customer satisfaction include:
• Higher Speed Same Price (“HSSP”)
HSSP program is a retention program for customers
to upgrade their Speedy Package one or more level
above their current package with a fixed price so that
customers receive a better experience as part our
appreciation for loyal customers.
•
Indihome Suggested Package (ISP)
The ISP program is an Indihome bundling package
program offered to existing customers by using
“suggested packages”, namely certain
Indihome
packages which are specifically adjusted for each
customer.
• TAM – Tele Account Management
TAM is customer management for the retail segment.
Some customers are managed by one agent in order to
perform caring or selling to such customer.
• Telkom Membership
Telkom Membership is a membership card for loyal
customers with a variety of benefits and advantages.
We implement the program with the involvement of
CUStoMer reCeivable ManageMent
We have been implementing a periodic billing system in
accordance with the characteristics of our products and
our customer segments. We provide several modes of
payment to facilitate our telecommunications services
customers through host-to-host payment systems in
cooperation with Collecting Agents (“CA”), such as
national commercial banks, regional commercial banks,
PT Pos Indonesia, employee cooperatives, convenience
stores, and others. Payment can be made in cash or non-
cash. Cash payments can be done through our Telkom
Services payment counters such as the Plasa Telkom
counters, Cooperatives, Banks, post offices, convenience
stores and other CA-subs; whereas non-cash payments
can be made by auto debit, credit cards, bank transfers to
Telkom’s account (specific to corporate customers/OLO),
Automated Teller Machines (“ATMs”), mobile banking,
internet banking or sources of funds (Mcash or Tcash).
Based on the modes of customer payments, in 2015, the
composition of host-to-host Telkom customers consist of
Tellers (40%), ATMs (17%), Post (11%), Auto Debit (16%),
Internet Banking (9%), Phone Banking (3%), Mobile
Banking (8.54%), SMS Banking (15.7%), and Credit Card
(0.005%). By the end of 2015, it could be concluded that
Tellers, ATMs and Auto-Debit are still the primary payment
mode choice of our customers.
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Specific to mobile users, Telkomsel, has implemented
• Applying Security Deposits (“SD”) to customers who
a real-time billing system that is based on an Online
plan to unsubscribe, the amount of which shall be
Charging System (“OCS”), which is valid for both prepaid
estimated based on their average bill, warm usage
and postpaid products. These systems has made it more
or pro-rate, where the SD shall be recalculated in the
convenient for our customers in choosing the method of
following month’s bill.
payment as well as providing flexibility for Telkomsel to
• Accepting advance payments for the down payment
conduct regional/cluster-based pricing.
of the bill to be issued in the following month.
• Accepting partial payment for corporate customers.
Previously, Telkomsel implemented a periodic billing
• Accepting payments in installments.
system with a system that is already centralized, accurate
•
Telkom Single
Invoice
(“TSI”)
feature
that
and standardized in all regions. kartuHalo postpaid
combines multiple bills from multiple services
service subscribers receive invoices sent to customers
into one bill, in addition to various other payment
every month to their respective residential addresses
transaction facilities.
with usage calculations that are based on: (i) the number
of minutes of use for mobile services; (ii) value-added
In the event that a customer defaults on payment
services that are charged with a certain period of use fee;
upon the due date, the said customer will be penalized
and (iii) the subscription fee for basic services and other
according to the type of products and services that he
services. Since the month of July 2013, Telkomsel has
or she subscribes to. Sanctions imposed may include the
provided further convenience for postpaid customers
by implementing e-billing, whereby bill notifications
imposition of late fees, isolation until the revocation of
the services, in accordance with the provisions contained
are sent via email. Telkomsel bill payments can be
in the Subscription Contract. Telkom has implemented
made by direct payments at Plasa GraPARI outlets or
the Integrated Dunning Management System (“IDMs”)
through ATMs, cash payment through bank tellers,
used to provide inaugural billing information and to place
phone banking, internet banking, mobile banking, credit
reminding calls regarding the current month’s bill, one
cards and auto debit. Telkomsel has also been working
month arrears and two month arrears. IDMS is also used
closely with CAs, namely National Commercial Banks,
to produce electronic billing statements (“EBS”), namely
Regional Development Banks and PT Pos Indonesia, that
the delivery of billing information to customers via email,
are able to accept payments from kartuHalo customers.
as well as the delivery of billing information via SMS. For
Furthermore, customers can also pay through the Tcare
corporate customers and OLO, bills are printed out and
website (https://my.telkomsel.com).
sent via special courier.
Finance, Billing and Collection Center unit (“FBCC”)
Telkomsel, has its own mechanism with regard to customer
plays a role in managing the billing and payment of
receivables collection. For a payment that has not been
accounts receivables from customers who are grouped
received until the maturity date of the bill in question,
in accordance with the customer service management
Telkomsel imposes sanctions through the cessation of all
and product segment concept, using the Telkom Revenue
outgoing calls. In the event that Telkomsel still does not
Management System (“TREMS”) application. The TREMS
receive payment within two months from the date of the
application facilitates customers with various advantages,
bill, the penalty is escalated to the closure of the relevant
including, among others by:
customer’s telephone number. Meanwhile, Telkomsel shall
• Allowing customers to pay their bills in all service
continue to seek payment from their customers, including
areas.
through cooperation with debt collecting partners/
• Accepting cash or non-cash payments.
institutions. Customers that have closed their customer
numbers but still would like to subscribe to Telkomsel
must settle all arrears and reapply for new mobile services.
Telkomsel does not charge late fees or interests.
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finanCial overvieW
finanCial perforManCe of telKoM inDoneSia
Telkom Indonesia has successfully closed 2015 with a good performance. This was reflected in its total assets, revenue
and net income. Looking briefly, the growth of the key financial performance of Telkom Indonesia in the last 5 (five)
years are as follows.
(in billion rupiah)
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
2015
2014
(restated)
2013
(restated)
2012
2011
Total
Asset
Total
Liabilitas
Total
Equity
Revenue
Net
Income
Total assets were increased by 17.2% from Rp141,822 billion in 2014 to Rp166,173 in 2015, while revenue were increased
by 14.2% from in Rp89,696 billion in 2014 to Rp102,470 billion in 2015. This increase driven a increase in the net income
by Rp1,018 billion, or 7.0%, from Rp14,471 billion in 2014 become Rp15,489 billion in 2015.
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Growth
2015-2014
(%)
2015
2014
(Restated)
2013
(Restated)
(Rp billion)
(US$ million)
(Rp billion)
(Rp billion)
December 31,
Consolidated Statements of Financial Position
Total Current Assets
Total Non-Current Assets
Total Assets
Total Current Liabilities
Total Non-Current Liabilities
Total Liabilities
Total Equity attributable to owners
of the parent company
39.7
10.0
17.2
9.6
58.8
30.3
10.9
47,912
118,261
3,476
8,579
166,173
12,055
35,413
37,332
72,745
75,136
2,569
2,708
5,277
5,451
34,294
107,528
141,822
32,318
23,512
55,830
67,721
33,672
94,883
128,555
29,034
22,800
51,834
59,823
aS of DeCeMber 31, 2015 CoMpareD to aS of DeCeMber 31, 2014
1. assets
As of December 31, 2015, total assets increase by 17.2% from Rp141,822 billion in 2014 to Rp166,173 billion (US$12,055
million) in 2015. Composition of current and non-current asset in 2014 and 2015 display in the graph below.
Composition of asset
2015
(in billion rupiah)
2014 (restated)
(in billion rupiah)
4
7,
9
1
2
(
2
8
.
8
%
)
118,261 (71.2% )
Non Current Asset
Current Asset
3
4,2
9
4
(
2
4
.
2
%
)
1
0
7,528 (75. 8 % )
128
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
129
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
a. Current assets
As of December 31, 2015, our current assets were
Rp47,912 billion (US$3,476 million) compare to
Rp34,294 billion as of December 31, 2014. The increase
in current assets was mainly due to:
non-current liabilities in 2014 and 2015 display in the
graph below.
a. Current liabilities
Current liabilities were Rp35,413 billion (US$2,569
- an increase in our cash and cash equivalents
million) as of December 31, 2015 and Rp32,318 billion
Rp10,445 billion, or 59.1% in time deposit,
as of December 31, 2014.
- an increase in prepaid tax amount Rp1,782 billion, or
200.2% due to tax incentive policy,
This increase was primarily due to:
- an increase in our advances and prepaid expenses
- an increase of Rp3,036 billion, or 58.3%, in accrued
Rp1,106 billion, or 23.4%, and
expenses, related to early termination of Flexi Tower
- an increase in our trade receivables third parties by
provision,
Rp289 miliar, atau 4.7%.
- an increase of Rp1,632 billion or 13.2%, in trade
payable, and
This increased was offset by decreased in tax restitution
- an increase of Rp897 billion, or 37.8%, in tax payable.
amounted to Rp225 billion, or 77.3%.
b. non Current assets
PAs of December 31, 2015, our non current assets were
Rp118,261 billion (US$8,579 million) and Rp107,528
current maturities on long-term liabilities Rp2,057
billion, or 34.9% and short-term bank loan Rp1,208
billion, or 66.7%.
This increase was partially offset by decrease in
billion as of December 31, 2014.
This increase was due to:
b. non Current liabilities
Non current liabilities were Rp37,332 billion (US$2,708
- an increase in property, plant and equipment-net
million) as of December 31, 2015 and Rp23,512 billion as
accumulated depreciation by Rp8,891 billion, or
of December 31, 2014. The increase was partially due to
9.4%,
increase in bank loans of Rp7,556, or 95.9%, primarily
- an increase in our advanced and other non-current
contributed by draw down of medium-term loans of
asset of Rp674 billion, or 10.4%, and
Telkomsel amounted to Rp5,061 billion and bond and
- an increase in intangible assets-net accumulated
notes Rp7,260 billion, or 324.3% related to Telkom
amortization by Rp593 billion or 24.1%.
bond issued in 2015.
2. liabilities dan equity
As of December 31, 2015, total liabilities increase by
c. equity
Total equity increase by Rp7,436 billion, or 8.6%, from
30.3% from Rp55,830 billion in 2014 to Rp72,745 billion
Rp85,992 billion as of December 31, 2014 to Rp93,428
(US$5,277 million) in 2015. Composition of current and
billion as of December 31, 2015. The increase of equity
Composition of liabilities
2015
(in billion rupiah)
2014 (restated)
(in billion rupiah)
35,4
1
3
(
4
8
.
7
%
)
3
7
,
3
3
2 (51.3%)
130
PT Telkom Indonesia (Persero) Tbk
32,3
1
8
2
3
,
5
1
2
(
4
2
.1
%
)
(
5
7
.
9
%
)
Non Current Liabilities
Current Liabilities
PT Telkom Indonesia (Persero) Tbk
131
PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
was primarily the result of total comprehensive income
or 20.2% in our advances and prepaid expenses. This
for the year attributable to owners of the parent of
increase was partially offset by a decrease of Rp4,075
Rp23,948 billion in 2015. Retained earning increase
billion, or 59.3% in our other current financial assets.
Rp7,220 billion, or 11.4% and total equity attributable
to owner of the parent increase by Rp7,415 billion, or
10.9%, from Rp67,721 billion as of December 31, 2014 to
b. non Current assets
As of December 31, 2014, our non current assets were
Rp75,136 billion as of December 31, 2015.
Rp107,528 billion and Rp94,883 billion as of December
aS of DeCeMber 31, 2014 CoMpareD to
aS of DeCeMber 31, 2013
• An increase in property, plant and equipment-net
accumulated depreciation by Rp8,048 billion, or
31, 2013. This increase was due to:
9.3%,
1. assets
Total assets increase by 10.3% from Rp128,555 billion in
• An increase in our advanced and other non-current
asset of Rp1,684 billion, or 35.1%,
2013 to Rp141,822 billion in 2014. Composition of current
• An increase in long term investment-net of Rp1,463
and non-current asset in 2013 and 2014 display in the
billion or 481.3%, and
graph below.
• An increase in intangible assets of Rp955 billion, or
a. Current assets
As of December 31, 2014, our current assets were
2. liabilities dan equity
63.3%.
Komposisi aset
2014 (restated)
(in billion rupiah)
2013 (restated)
(in billion rupiah)
3
4,2
9
4
(
2
4
.
2
%
)
1
0
7,528 (75. 8 % )
3
3,
6
7
2
(
2
6
.
2
%
)
9
4,883 (73.8 % )
Non Current Asset
Current Asset
Rp34,294 billion compared to Rp33,672 billion as of
Total liabilities increase by 7.7% from Rp51,834 billion
December 31, 2013. The increase in current assets
as of December 31, 2013 to Rp55,830 billion as of
was mainly due to an increase in our cash and cash
December 31, 2014. Composition of current and
equivalents by Rp2,976 billion, or 20.3%, trade
non-current liabilites in 2013 and 2014 display in the
receivable by Rp374 billion, or 5.6%, and Rp796 billion,
graph below.
130
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
131
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
Composition of liabilities
2014 (restated)
(in billion rupiah)
2013 (restated)
32,3
1
8
(
5
7
.
9
%
)
2
2
,
8
0
0
(
4
4
.
0
%)
2
3
,
5
1
2
(
4
2
.1
%
)
Non Current Liabilities
Current Liabilities
29,0
3
4
(
5
6
.
0
%
)
a. Current liabilities
Current liabilities were Rp32,318 billion as of December
c. equity
Total equity increase by Rp9,271 billion, or 12.1%, from
31, 2014 and Rp29,034 billion as of December 31, 2013.
Rp76,721 billion as of December 31, 2013 to Rp85,992
This increase was primarily due to:
billion as of December 31, 2014. The increase of equity
- An increase of Rp1,378 billion, or 319.0%, in short-
was primarily the result of total comprehensive income
term bank loans,
for the year attributable to owners of the parent of
- An increase of Rp806 billion or 15.8%, in current
Rp22,041 billion in 2014, the sale of treasury stock of
maturities of long-term liabilities,
Rp1,969 billion, increase in paid in capital by Rp576
- An increase of Rp678 billion, or 39.9%, in taxes
billion. This increase offset by cash deviden of Rp9,943
payable, and
billion. Our retained earnings increase by Rp5,328
- An increase of Rp473 billion, or 13.6%, in unearned
billion, or 9.2%, and total equity attributable to owner
revenues.
b. non Current liabilities
Non current
liabilities were Rp23,512 billion as
of the parent increase by Rp7,898 billion, or 13.2%, from
Rp59,823 billion as of December 31, 2013 to Rp67,721
billion as of December 31, 2014.
of December 31, 2014 and Rp22,800 billion as of
inCoMe StateMent overvieW
December 31, 2013. The increase was partially due
to increase in bank loans of Rp2,243, or 39.8%. This
The following table sets out our Consolidated Statements
increase was partially offset by a decrease in bond and
of Profit or Loss and Other Comprehensive Income,
notes of Rp834 billion, or 27.1%.
itemized according to our main products and services, for
the three years 2015 through 2013. Each item is expressed
as a percentage of total revenues or expenses:
132
132
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
133
PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
growth
2015-2014
(%)
years ended December 31,
2015
2014 (restated)
2013
(rp
billion)
(US$
million)
%
(rp
billion)
%
(rp
billion)
%
14.2
102,470
7,433
100.0
89,696
100.0
82.967
100.0
5.6
8.7
8.6
45,118
3,272
44.0
42,725
47.6
41.634
50.2
37,285
2,704
36.3
34,290
38.2
32.138
38.7
35,803
2,597
34.9
32,972
36.8
30.722
37.0
(23.8)
432
31
0.4
567
0.6
730
0.9
39.8
(7.1)
(13.3)
4.6
(5.2)
1.0
(8.9)
(21.7)
11.9
1,050
7,833
4,635
2,821
275
102
4,290
2,276
2,014
76
568
336
205
20
7
311
165
146
1.0
7.7
4.5
2.8
0.3
0.1
4.2
2.2
2.0
751
8,435
5,347
2,697
290
101
4,708
2,908
1,800
0.8
9.4
6.0
3.0
0.3
0.1
5.2
3.2
2.0
686
9.496
6.453
2.682
119
242
4.843
2.971
1.872
0.8
11.5
7.8
3.2
0.2
0.3
5.9
3.6
2.3
26.5
47,820
3,470
46.6
37,808
42.2
32.877
39.6
45.0
7.8
19,665
1,427
19.2
13,563
15.1
10.113
15,132
1,098
14.8
14,034
15.7
13.134
12.2
15.8
revenues
telephone revenues
Cellular
Usage charges
Monthly subscription
charges
Features
fixed lines
Usage charges
Monthly subscription
charges
Call center
Others
interconnection revenues
Domestic interconnection
International
interconnection
Data, internet and
information technology
revenues
Cellular internet and data
Short Messaging Service
(SMS)
132
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
133
133
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES growth
2015-2014
(%)
years ended December 31,
2015
2014 (restated)
2013
(rp
billion)
(US$
million)
%
(rp
billion)
%
(rp
billion)
%
24.5
12,432
902
12.1
9,987
11.1
9,154
11.0
375.0
5.5
456
135
(3.8)
1,231
17.9
(23.6)
719
512
33
10
89
52
37
0.4
0.1
1.2
0.7
0.5
96
128
1,280
610
670
0.1
0.2
1.5
0.7
0.8
274
202
1,253
861
392
0.3
0.3
1.5
1.0
0.5
26.3
4,011
291
4.0
3,175
3.5
2,360
2.8
160.5
1,516
3.0
49.8
(51.0)
(11.1)
721
668
221
885
110
52
49
16
64
1.5
0.7
0.7
0.2
0.9
582
700
446
451
996
0.6
0.8
0.5
0.5
84
570
205
100
1.1
1,401
0.1
0.7
0.2
0.1
1.7
Internet, data
communication and
information technology
services
Pay TV
Others
network revenues
Leased lines
Satellite transponder
lease
others telecommunication
revenues
Sales of handset
Tower leased
Call center service
CPE and terminal
Others
expenses
16.2
71,552
5,191
100.0
61,564
100.0
57,700
100.0
Depreciation and
amortization expenses
operations, maintenance
and telecommunication
service expenses
Operations and
maintenance
Radio frequency usage
charges
Concession fees and
USO charges
Electricity, gas and
water
Cost of handset sold
Cost of SIM cards and
vouchers
Cost of IT services
Leased lines and CPE
Vehicles rental and
supporting facilities
8.2
18,534
1,345
25.9
17,131
27.8
15,780
27.3
26.1
28,116
2,040
39.2
22,288
36.1
19,332
33.5
32.4
15,658
1,136
21.9
11,827
19.2
9,658
16.7
13.1
3,626
263
5.1
3,207
5.2
3,098
5.4
22.7
2,230
162
3.1
1,818
3.0
1,595
2.8
(14.1)
1,014
74
1.4
1,180
1.9
1,063
1.8
254.6
1,493
(27.2)
444
147.1
882
82.6
1,384
108
32
64
100
2.1
0.6
1.2
1.9
8.8
296
21
0.4
421
610
357
758
272
0.7
1.0
0.6
1.2
0.4
153
599
677
440
282
0.3
1.0
1.2
0.8
0.5
Insurance
(6.9)
312
23
0.4
335
0.5
374
0.6
134
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
135
PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Pension benefit cost
(33.9)
432
growth
2015-2014
(%)
years ended December 31,
2015
2014 (restated)
2013
(rp
billion)
(US$
million)
(35.0)
(39.3)
(94.6)
117
646
14
9
47
1
%
0.2
0.9
0
(rp
billion)
180
1,065
258
%
0.3
1.7
0.4
(rp
billion)
138
1,166
89
%
0.2
2.0
0.2
21.3
11,874
861
16.7
9,787
16.0
9,733
16.9
7.8
4,052
294
5.7
3,759
6.1
3,553
6.2
32.8
4,225
307
5.9
3,182
5.2
3,252
5.6
23.9
1,632
100.0
683
(5.4)
32.2
40.8
(12.9)
(5.4)
(2.1)
212
152
138
216
53
47
118
50
31
15
11
10
16
4
3
2.3
1.0
0.6
0.3
0.2
0.2
0.3
1,317
-
654
224
115
98
248
2.1
-
1.1
0.4
0.2
0.2
0.4
1,160
2.0
-
-
873
220
19
92
374
1.5
0.4
0
0.2
0.7
0.1
56
0.1
71
0.1
0.1
48
0.1
66
0.1
(62.8)
32
(26.7)
3,586
(35.4)
2,351
2
260
170
0
5.0
3.3
86
4,893
0.1
7.9
53
4,927
3,639
5.9
3,720
0.1
8.5
6.4
(1.5)
1,235
90
1.7
1,254
2.0
1,207
2.1
5.9
3,275
6.1
4,204
238
305
4.6
5.8
3,092
3,963
5.0
6.6
3,044
4,155
5.3
7.3
6.7
1,032
75
1.4
967
1.6
675
1.2
28.8
1,010
73
1.4
784
1.3
1,589
2.8
(25.6)
393
28
0.5
528
0.9
412
0.7
(0.3)
(2.3)
368
347
27
25
0.5
0.5
369
355
0.6
0.6
340
341
0.6
0.6
Management project
Tower rent
Others
personnel expenses
Salaries and related
benefits
Vacation pay, incentives
and other benefits
Employees' income tax
Early retirement
program
Housing
LSA expenses
Insurance
Post employment
healthcare benefit cost
Other employee
benefits cost
Other post-
employement benefit
cost
Others
interconnection expenses
Domestic
interconnection and
access
International
interconnection
Marketing expenses
general and
administrative expenses
General and
Administrative
Expenses
Provision for
impairment of
receivables
Training, education and
recruitment
Collection expenses
Travelling
134
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
135
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES growth
2015-2014
(%)
years ended December 31,
2015
2014 (restated)
2013
(rp
billion)
(US$
million)
%
(rp
billion)
%
(rp
billion)
%
Professional fees
Meeting
Security and
screening
Social contribution
Others
Lost on foreign
exchange - net
Other expenses
Other income
operating profit
Finance income
Finance costs
Share of loss of associated
companies
59.4
0.6
(22.1)
20.8
(18.7)
228.6
424
163
81
116
270
46
384.1
1,917
39.7
1,500
31
12
6
8
20
3
139
109
11.0
32,418
2,351
13.7
1,407
102
36.8
(2,481)
(180)
(88.2)
(2)
0
profit before income tax
9.5
31,342
2,273
Income Tax Expenses + (-net)
9.3
(8,025)
(582)
9.6
23,317
1,691
(17.7)
631
46
0.6
0.2
0.1
0.2
0.4
0.1
266
162
104
96
332
14
0.4
0.3
0.2
0.2
0.5
0
272
138
93
85
210
249
0.5
0.2
0.2
0.1
0.4
0.4
2.7
396
0.6
480
0.8
-
-
-
-
-
-
-
-
-
1,074
29,206
1,238
(1,814)
(17)
28,613
(7,339)
21,274
767
-
-
-
-
-
-
-
-
-
2,579
27,846
836
(1,504)
(29)
27,149
(6,859)
20,290
112
profit for the year
other Comprehensive
income (expenses) - net
net Comprehensive
income for the year
profit for the year
attributable to owners of
the parent company
profit for the year
attributable to non-
controlling interest
net comprehensive
income for the year
attributable to owners of
the parent company
net comprehensive
income for the year
attributable to non-
controlling interest
profit per share
8.7
23,948
1,737
-
22,041
-
20,402
7.0
15,489
1,123
-
14,471
-
14,205
15.1
7,828
568
-
6,803
-
6,085
5.5
16,130
1,170
-
15,296
-
14,317
15.9
7,818
567
-
6,745
-
6,085
-
6.51
157,77
11,45
-
148,13
-
147.42
-
-
-
-
-
-
-
-
-
-
-
-
-
-
136
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
137
PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS year enDeD DeCeMber 31, 2015 CoMpareD to year
enDeD DeCeMber 31, 2014
1. revenues
Total revenues increased by Rp12,774 billion, or 14.2%, from Rp89,696 billion in 2014 to Rp102,470 billion (US$7,433
million) in 2015. The increase in revenues in 2015 was due to the increase in data internet and information technology
service revenues and cellular telephone revenues, and to a lesser extent others telecomunication services revenues.
Composition of revenues
2015
(in billion rupiah)
2014 (restated)
(in billion rupiah)
)
0 (4.2 %
9
2
,
4
1(1.2 %
3
2
,
1
4
7
,
8
2
0
(
4
6.7
%)
)
3
7
,
2
8
5
(
3
6
4,011 (
3
.
9
%
)
.
4
%
)
% )
3 ( 7.6
3
7 , 8
3
7
,
8
0
8
,
3
4,708 (5.2 % )
0 (1.4
8
2
,
1
3
4
,
2
3,175 (3.5
%
)
)
%
9
0
(
3
8
.
2
%
)
( 9 . 4 % )
8 , 4 3 5
7,8
0
8 (42.2%)
Cellular
Fixed Line
Data, Internet & IT Service
Interconnection
Network
Other Telecommunication Service
a. Cellular telephone revenues
Cellular telephone revenues increased by Rp2,995
b. fixed lines revenues
Fixed lines revenues decreased by Rp602 billion, or
billion, or 8.7%, from Rp34,290 billion in 2014 to
7.1%, from Rp8,435 billion in 2014 to Rp7,833 billion
Rp37,285 billion (US$2,704 million) in 2015.
(US$568 million) in 2015. The decrease in fixed lines
revenues due to decrease in usage charges of Rp712
Usage charges increased by Rp2,831 billion, or 8.6%,
billion, or 13.3%, caused by a decrease in local and
from Rp32,972 billion in 2014 to Rp35,803 billion in
domestic long distance usage. The decrease mainly
2015 due to an increase of 8.6% in both our prepaid and
contributed by termination Flexi.
postpaid subscriber. Revenues from features increased
by Rp299 billion, or 39.8%, from Rp751 billion in 2014
This decreased was partially offset by an increase of
to Rp1,050 billion in 2015 due to increase in usage
monthly subscription amounted to Rp124 billion, or 4.6%.
features by our subscribers. This increase offset by
decreased of monthly subscription charges by Rp135
c. Data, internet and information technology Services
billion, or 23.8%, from Rp567 billion in 2014 to Rp431
revenues
billion in 2015.
Our data, internet and information technology
service revenues accounted for 46.6% of our
Our total cellular telephone revenues accounted for
36.3% of our consolidated revenues for the year ended
consolidated revenues for the year ended December
31, 2015, compared to 42.2% for the year ended
December 31, 2015.
December 31, 2014.
136
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Data, internet and information technology service
revenues increased by Rp10,012 billion, or 26.5%,
e. network revenues
Network revenues decreased by Rp49 billion, or 3.8%,
from Rp37,808 billion in 2014 to Rp47,820 billion
from Rp1,280 billion in 2014 to Rp1,231 billion (US$89
(US$3,470 million) in 2015. This increase was primarily
million) in 2015 primarily due to an decrease in our
due to an increase in revenues from internet, data
satellite transponder lease revenue by Rp158 billion, or
communication and information technology services
23.6%, from Rp670 billion in 2014 to Rp512 billion in
by Rp2,445 billion, or 24.5%, which was driven primarily
2015, it was partly offset primarily by increase in leased
by
IndiHome subscribers, and data cellular and
line amounted to Rp109 billion, or 17.9%.
internet revenues from Rp6,102 billion, or 45.0% due to
a growth in mobile broadband usage from 31.2 million
f. other telecommunications Services revenues
subscribers in 2014 to 43.8 million subscribers in 2015
In 2015, revenues from other telecommunications
related to high adoption of smartphone (3G/4G).
service increased by Rp836 billion, or 26.3%, from
Rp3,175 billion in 2014 to Rp4,011 billion (US$291
SMS Revenues increased by Rp1,098 billion, or 7.8%,
million) in 2015. The increase was primarily due to an
from Rp14,034 billion in 2014 to Rp15,132 billion in
increase in sales of handset by Rp934 billion, or 160.5%
2015 driven from successful implementation of cluster-
and an increase in call centre revenues by Rp222
based pricing.
d. interconnection revenues
billion, or 49.8%, it was partly offset by decrease in
CPE revenues by Rp230 billion, or 51.0%.
Interconnection revenues comprised interconnection
line network and
revenues
from our fixed
interconnection revenues from Telkomsel’s mobile
g. other income
Other income increased by Rp426 billion, from Rp1,074
billion in 2014 to Rp1,500 billion (US$109 million) in 2015.
cellular network. Including incoming international long-
distance revenues from our IDD service (TIC-007).
2. expenses
Interconnection revenues decreased by Rp418 billion,
or 8.9%, from Rp4,708 billion in 2014 to Rp4,290
Total expenses increased by Rp9,988 billion, or 16.2%,
from Rp61,564 billion in 2014 to Rp71,552 billion (US$5,191
billion (US$311 million) in 2015 primarily due to a
million) in 2015. For futher explaination as shown below:
decrease in domestic interconnection by Rp632
billion, or 21.7. This decrease offset by increase of
international interconnection revenues amounted to
Rp214 billion, or 11.9%.
Composition of expenses
2015
(in billion rupiah)
2014 (restated)
(in billion rupiah)
%)
6.6
1
(
4
7
8
,
1
1
)
%
0
.
5
(
6
8
5
,
3
)
(0.1 %
6
4
4,204 (
5
.
8
%
)
1,917
(
2
.
7
%
)
%)
4.6
(
5
7
2
,
3
1
8,534 (25.9)%
2
8
,
1
1
6
(
3
9
.
3
%
)
2
2
,
2
8
8
(
3
6
.
2
%
)
( 7 . 9 % )
3
9
4 , 8
)
%
2 (5.0
9
,0
3
)
%
9
.
5
1
(
7
8
7
,
9
)
(0.0 %
4
1
3,963 (6.4
%
)
39
6.1
(
0
.
6
%
)
17,131 (27. 8 % )
Operations & Maintenance
Depreciation & Amortization
Personnel
Others
Interconnection
Marketing
General & Administrative
Gain (loss) on Foreign
Exchange
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a. operations, Maintenance and telecommunication
d. interconnection expense
Service expenses
Interconnection expense decreased by Rp1,307 billion,
or 26.7%, from Rp4,893 billion in 2014 to Rp3,586 billion
Operations, maintenance and
telecommunication
(US$260 million) in 2015 primarily due to an decrease
service expenses increased by Rp5,828 billion, or
of Rp1,288 billion, or 35.4% in domestic interconnection
26.1%, from Rp22,288 billion in 2014 to Rp28,116 billion
and transit, and international interconnection expense
(US$2,040 million) in 2015.
by Rp19 billion, or 1.5% in result of inter operator
discount tariff.
The
increase
in operations, maintenance and
telecommunication service expenses was primarily
attributable to the following:
e. Marketing expense
Marketing expenses increased by Rp183 billion, or 5.9%,
− Operations and maintenance increase by Rp3,831
from Rp3,092 billion in 2014 to Rp3,275 billion (US$238
billion, or 32.4%, due to an increase in expenses
million) in 2015 due to an increase in advertising and
associated with network maintenance to improve
promotion expenses by Rp142 billion, or 5.9%, due to
our mobile cellular and
IndiHome business
the selective use of media for promotion and increased
performance;
group synergy in marketing our products, mainly
− Cost of handset sold increase by Rp1,072 billion, or
promotion in 4G LTE and IndiHome Triple Play.
254.6%, from Rp421 billion in 2014 to Rp1,493 billion
in 2015. The increase was due to increase of modem
and terminal bundling program;
− Leased lines and CPE increased by Rp626 billion,
or 82.6%, which was used for operation and
maintenance of leased lines.
This increased were offset by decreased in tower
leased by Rp419 billion, or 39.3% and other expenses
by Rp244 billion, or 94.6%.
b. Depreciation and amortization expenses
Depreciation and amortization expenses increased by
Rp1,403 billion, or 8.2%, from Rp17,131 billion in 2014
to Rp18,534 billion (US$1,345 million) in 2015, primarily
due to an increase in property, plan and equiptment
f. general and administrative expenses
General and administrative expenses increased by
Rp241 billion, or 6.1%, from Rp3,963 billion in 2014 to
Rp4,204 billion (US$305 million) in 2015 primarily
due in part to an increase in provision for doubtful
impairment of receivables by Rp226 billion, or 28.8%.
g. gain (loss) on foreign exchange - net
Loss on foreign exchange - net increased by Rp32
billion, from Rp14 billion in 2014 to Rp46 billion (US$3
million) in 2015.
h. other expenses
Other expenses increased by Rp1,521 billion, from
Rp396 billion in 2014 to Rp1,917 billion (US$139
to improving our service to customers and accelerate
million) in 2015.
fixed wireless business assets, fixed wireless assets has
been fully depreciated amounted to Rp545 billion.
c. personnel expenses
Personnel expenses increased by Rp2,087 billion,
or 21.3%, from Rp9,787 billion in 2014 to Rp11,874
3. operating profit and operating profit
Margin
As a result of the foregoing, operating profit increased
by Rp3,212 billion, or 11.0%, from Rp29,206 billion in
2014 to Rp32,418 billion (US$2,351 million) in 2015.
billion (US$861 million) in 2015 due to a increased by
Operating profit margin decreased from 32.6% in 2014
Rp1,043 billion, or 32.8% in incentive and other benefit
to 31.6% in 2015.
expenses, in line with company’s performance and a
increase in early retirement program by Rp683 billion.
This resulted in increase in employees income tax by
Rp315 billion, or 23.9% from Rp1,317 in 2014 to Rp1,632
billion in 2015.
4. profit before income tax and pre-tax
Margin
As a result of the foregoing, profit before income tax
increased by Rp2,729 billion, or 9.5%, from Rp28,613
billion in 2014 to Rp31,342 billion (US$2,273 million) in
2015. Pre-tax margin decreased from 31.9% in 2014 to
30.6% in 2015.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
5. income tax expense
Income tax expense increased by Rp686 billion, or
9. net Comprehensive income for the year
Net Comprehensive income for the year increased by
9.3%, from Rp7,339 billion in 2014 to Rp8,025 billion
Rp1,907 billion, or 8.7%, from Rp22,041 billion in 2014
(US$582 million) in 2015, in line with the increase in
to Rp23,948 billion (US$1,737 million) in 2015.
profit before income tax.
6. other Comprehensive income
Other comprehensive income decreased by Rp136
billion, or 17.7%, from Rp767 billion in 2014 to Rp631
billion (US$46 million) in 2015 was offset by decreased
in actuarial gain amounted Rp236 billion, or 31.8%.
7. profit for the year attributable to owners
of the parent Company
Profit for the year attributable to owners of the parent
company increased by Rp1,018 billion, or 7.0%, from
10. net income per Share
Net income per share increased by Rp9.64, or 6.5%,
from Rp148.13 in 2014 to Rp157.77 in 2015.
year enDeD DeCeMber 31, 2014
CoMpareD to year enDeD DeCeMber 31,
2013
1. revenues
Total revenues
increased by Rp6,729 billion, or
Rp14,471 billion in 2014 to Rp15,489 billion in 2015.
8.1%, from Rp82,967 billion in 2013 to Rp89,696
8. profit for the year attributable to non-
controlling interest
billion in 2014. The increase in revenues in 2014
was primarily contributed by data
internet and
information technology service revenues and cellular
Profit for the year attributable to non-controlling
telephone revenues, and, to a lesser extent others
interest increased by Rp1,025 billion, or 15.1%, from
telecomunication services revenues.
Rp6,803 billion in 2014 to Rp7,828 billion (US$568
million in 2015.
Composition of revenues
2014 (restated)
(in billion rupiah)
2013
(in billion rupiah)
3,175 (3.5
%
)
3
4
,
2
9
0
(
3
8
.
2
%
)
% )
( 9 , 4
8. 4 3 5
43 ( 5 . 8 % )
4,8
1,253 (1. 5
2,3
6
0
(
2
.
8
%
)
)
%
3
2
.
1
3
8
(
3
8
,
7
%
)
3
2
,
8
7
7
(
3
9
.
6
%
)
% )
1 . 4
1
(
9 , 4 9 6
)
%
8 (5.2
0
,7
4
0 (1.5 % )
8
2
,
1
3
7
,
8
0
8
,
3
7,8
0
8 (42.2%)
Cellular
Fixed Line
Data, Internet & IT Service
Interconnection
Network
Other Telecommunication Service
140
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
a. Cellular telephone revenues
Cellular telephone revenues increased by Rp2,152
SMS Revenues increased by Rp900 billion, or 6.9%,
from Rp13,134 billion in 2013 to Rp14,034 billion in
billion, or 6.7%, from Rp32,138 billion in 2013 to
2014.
Rp34,290 billion in 2014.
d. interconnection revenues
Usage charges increased by Rp2,250 billion, or 7.3%,
Interconnection
revenues
comprised
from Rp30,722 billion in 2013 to Rp32,972 billion in
interconnection revenues from our fixed
line
2014 due to an increase of 6.9% in both our prepaid
network and
interconnection
revenues
from
and postpaid subscriber, also due to increasing of
Telkomsel’s mobile cellular network.
Including
our local and long distance usage. Revenues from
incoming
international
long-distance revenues
features increased by Rp65 billion, or 9.5% from
from our IDD service (TIC-007).
Rp686 billion in 2013 to Rp751 billion in 2014 due
to increase in usage features by our subscribers.
Interconnection revenues decreased by Rp135
Monthly subscription charges decreased by Rp163
billion, or 2.8%, from Rp4,843 billion in 2013 to
billion, or 22.3%, from Rp730 billion in 2013 to Rp567
Rp4,708 billion in 2014 primarily due to a decrease
billion in 2014.
in incoming calls to our subcribers.
Our total cellular telephone revenues accounted
for 38.2% of our consolidated revenues for the year
e. network revenues
Network revenues increased by Rp27 billion, or
ended December 31, 2014.
b. fixed lines revenues
Fixed lines revenues decreased by Rp1,061 billion,
2.2%, from Rp1,253 billion in 2013 to Rp1,280 billion
in 2014 primarily due to an increase in our satellite
transponder lease revenue by Rp278 billion, or
70.9%, from Rp392 billion in 2013 to Rp670 billion in
or 11.2%, from Rp9,496 billion in 2013 to Rp8,435
2014 as result of an increase in satellite transponder
billion in 2014. The decrease in fixed lines revenues
capacity lease by 18,4% from 3.007 million MHz in
due to decrease in fixed wireline revenue and fixed
2013 to 3.560 million MHz in 2014.
wireless revenues by 5.1% and 59.9%. The decrease
was primarily due to decrease in usage charges of
f. other
telecommunications
Services
Rp1,106 billion, or 17.1%, caused by a decrease in
local and domestic long distance usage.
revenues
In 2014, revenues from other telecommunications
service increased by Rp815 billion, or 34.5%, from
The decreased in fixed lines revenues was partially
Rp2,360 billion in 2013 to Rp3,175 billion in 2014.
offset by an increased in our call center revenues by
The increase was primarily due to an increase in
Rp171 billion, or 143.7%.
CPE revenue by Rp351 billion, or 351.0% and sales
of handset by Rp498 billion, or 592.9%. It was partly
c. Data, internet and information technology
offset primarily by decreased in other revenues
Services revenues
amounted to Rp405 billion, or 28.9% due to a
Our data, internet and information technology
decreased in USO compensation.
service revenues accounted for 42.2% of our
consolidated revenues for the year ended December
31, 2014, compared to 39.6% for the year ended
December 31, 2013.
Data, internet and information technology service
revenues increased by Rp4,931 billion, or 15.0%, from
Rp32,877 billion in 2013 to Rp37,808 billion in 2014.
This increased was primarily due to an increase in
revenues from cellular internet by Rp3,450 billion,
or 34.1% primarily from an increase of 80.7% in Flash
subscribers from 17.3 million subscribers in 2013 to
31.2 million subscribers in 2014.
g. other income
Other income decreased by Rp1,505 billion, from
Rp2,579 billion in 2013 to Rp1,074 billion in 2014 as
we had recognized a gain on the sale of 80% of our
ownership in PT Indonusa.
140
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2. expenses
Total expenses increased by Rp3,864 billion, or 6.7%,
from Rp57,700 billion in 2013 to Rp61,564 billion in
2014. For futher explaination as shown below:
The above increases were offset by decreased
in cost of IT services by Rp320 billion, or 47.2%,
from Rp677 billion in 2013 to Rp357 billion in
2014 due to efficiency gains as a result of of using
integrated system.
Composition of expenses
2014 (restated)
2013
3 ( 7 . 9 % )
9
4,8
)
%
9
.
5
1
(
7
8
7
,
9
2 (5.0%)
9
0
,
3
%)
.0
0
(
4
1
3,963 (6.4
%
)
396.1 (0
.
6
%
)
2
2
,
2
8
8
(
3
6
.
2
%
)
)
%
9
.
6
1
(
3
8
3
,
9
)
%
5
.
8
(
7
2
9
,
4
4,155 (7.2%)
480 (0.8%)
1
9
,
3
3
2
(
3
3
.
5
%
)
)
9 (0.4 %
4
2
5.3% )
(
4
4
0
3
,
17,131 (27. 8 % )
15,780 (27. 3 % )
Operations & Maintenance
Depreciation & Amortization
Personnel
Others
Interconnection
Marketing
General & Administrative
Gain (loss) on Foreign
Exchange
a. operations,
Maintenance
and
telecommunication Service expenses
b. Depreciation and amortization expenses
Depreciation and amortization expenses increased by
Operations, maintenance and
telecommunication
Rp1,351 billion, or 8.6%, from Rp15,780 billion in 2013 to
service expenses increased by Rp2,956 billion, or
Rp17,131 billion in 2014, primarily due to an increase in
15.3%, from Rp19,332 billion in 2013 to Rp22,288 billion
depreciation expense related to switching equipment
in 2014.
as an efforts improving service to customers and by
our allowance for impairment losses of fixed assets
The
increase
in operations, maintenance and
due to changes in business strategies for our fixed
telecommunication service expenses was primarily
wireless line.
attributable to the following:
− Operations and maintenance of Rp2,169 billion, or
22.5%, due to an increase in expenses associated
c. personnel expenses
Personnel expenses increased by Rp54 billion, or
with network maintenance to improve our mobile
0.6%, from Rp9,733 billion in 2013 to Rp9,787 billion
cellular business performance;
in 2014 due to a increased in salaries and related
− Leased lines and CPE increased by Rp318 billion,
or 72.3%, which was used for operation and
benefits by Rp206 billion, or 5.8%, due to increased
personnel amount by 1.37% in 2013 from 25,011 people
maintenance of leased lines as a result of an
to 25,284 people in 2014. This resulted an increased in
increased in projects from our corporate customers;
− Cost of handset increase by Rp268 billion, or 175.2%,
from Rp153 billion in 2013 to Rp421 billion in 2014
due to modem and terminal bundling program.
employees’ income tax by Rp157 billion, or 13.5% from
Rp1,160 billion in 2013 to Rp1,317 billion in 2014.
142
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This increased was offset by decreased in net periodic
3. operating profit and operating profit
post-retirement health care benefits costs amounted
Margin
to Rp126 billion, or 33.7% and decreased in net periodic
As a result of the foregoing, operating profit increased
pension costs by Rp219 billion, or 25.1 according to
actuarial accounting.
d. interconnection expense
Interconnection expense decreased by Rp34 billion,
by Rp1,360 billion, or 4.9%, from Rp27,846 billion
in 2013 to Rp29,206 billion in 2014. Operating profit
margin decreased from 33.6% in 2013 to 32.6% in 2014.
4. profit before income tax and pre-tax
or 0.7%, from Rp4,927 billion in 2013 to Rp4,893
Margin
billion in 2014 primarily due to an decrease of Rp81
As a result of the foregoing, profit before income tax
billion, or 2.2% in domestic interconnection and transit
interconnection expense.
e. Marketing expense
increased by Rp1,464 billion, or 5.4%, from Rp27,149
billion in 2013 to Rp28,613 billion in 2014. Pre-tax
margin increased from 32.7% in 2013 to 31.9% in 2014.
Marketing expenses increased by Rp48 billion, or
5. income tax expense
1.6%, from Rp3,044 billion in 2013 to Rp3,092 billion
in 2014 due to an increase of Rp80 billion, or 15.1%
in customer education expenses, primarily for our
increase was offset by
broadband service. The
decrease in advertising and promotion expenses
Income tax expense decreased by Rp480 billion, or
7.0%, from Rp6,859 billion in 2013 to Rp7,339 billion
in 2014, in line with the increase in profit before
income tax.
by Rp18 billion, or 0.7%, due to the selective use of
media for promotion and increased group synergy in
6. other Comprehensive income
Other comprehensive income increased by Rp655
marketing our products.
billion, or 584.8%, from Rp112 billion in 2013 to Rp767
f. general and administrative expenses
billion in 2014.
General and administrative expenses decreased by
7. profit for the year attributable to owners
Rp192 billion, or 4.6%, from Rp4,155 billion in 2013
of the parent Company
to Rp3,963 billion in 2014 primarily due in part to
Profit for the year attributable to owners of the parent
an decrease in provision for doubtful impairment of
receivables by Rp805 billion, or 50.7%. This decreased
was partially offset with an increase in general expense
company increased by Rp266 billion, or 1.9%, from
Rp14,205 billion in 2013 to Rp14,471 billion in 2014.
by Rp292 billion, or 43.3% and also an in our training,
8. profit for the year attributable to non-
education and recruitment expense by Rp116, or 28.2%.
controlling interest
g. gain (loss) on foreign exchange - net
Profit for the year attributable to non-controlling
interest increased by Rp718 billion, or 11.8%, from
Loss on foreign exchange - net decreased by Rp235
Rp6,085 billion in 2013 to Rp6,803 billion in 2014.
billion, or 94.4%, from Rp249 billion in 2013 to Rp14
billion in 2014.
h. other expenses
9. Comprehensive income for the year
Comprehensive income for the year increased by
Rp1,639 billion, or 8.0%, from Rp20,402 billion in 2013
Other expenses decreased by Rp84 billion, or 17.5%
to Rp22,041 billion in 2014.
from Rp480 billion in 2013 to Rp396 billion in 2014.
10. net income per Share
Net income per share increased by Rp0.7, or 0.5%,
from Rp147.42 in 2013 to Rp148.13 in 2014
142
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
CaSH floW StateMent overvieW
The following table sets out information concerning our consolidated cash flows, as set out in (and prepared on the
same basis as) our Consolidated Financial Statements:
Growth
2015-2014
As of Desember 31,
2015
2014
(Restated)
2013
(%)
(Rp billion)
(US$ million)
(Rp billion)
(Rp billion)
15.7
43,669
3,168
37,736
36,574
10.8
(36.5)
238.8
(27,421)
(6,407)
9,841
(1,989)
(465)
(24,748)
(10,083)
(22,702)
(13,327)
714
2,905
545
750.7
604
44
71
1,039
20.3
17,672
1,282
14,696
13,118
-
-
-
-
(6)
59.1
28,117
2,040
17,672
14,696
Net Cash
provided by operating
activities
used in investing activities
used in financing activities
Net increase in cash and cash
equivalents
Effect of exchange rate changes
on cash and cash equivalents
Cash and cash equivalents at
beginning of year
Ending balance of disposed
subsidiary
Cash and cash equivalents at
end of year
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
year enDeD DeCeMber 31, 2015 CoMpareD to year enDeD
DeCeMber 31, 2014
As of December 31, 2015, total cash and cash equivalent amounted to Rp28,117 billion, increase by Rp10,445 billion, or
59.1% compared to 2014.
In 2015, operating activity accounted for the largest cash receipts Rp102,663 billion, or 82.7%, followed by financing
activity amounted to Rp20,634 billion, or 16.6% and investing activity amounted to Rp906 billion, or 0.7. In total, cash
receipts increase by Rp13,859 billion, or 12.6% compared to 2014. Composition of cash receipts for all three of these
activities in the year 2015 and 2014 display below.
Cash receipt
2015
20,6 3
1 6 . 6 %)
6 ( 0 . 7 % )
4 (
9 0
3 (8 2.7%)
6
1 0 2 , 6
Operating
Financing
Investing
2014
1 1 . 8 %)
(
9
6
1 3 , 0
)
%
3
.
6
(
2
1
9
,
6
8 1.9 %)
9 0 , 3 6 3 (
The majority of cash used for operating activities amounted to Rp58,994 billion, or 51.6% investment activities amounted
to Rp28,327 billion, or 24.8% and financing activities amounted to Rp27,041 billion, or 23.6%. Compared to 2014, cash
disbursement increase by Rp6,923 billion, or 6.4%. Composition of disbursements for all three of these activities in the
year 2015 and 2014 display below.
Cash Disbursement
2015
41 (2 3 . 6 % )
7,0
2
2
8
,
3
2
7
(
2
4
.8
%)
4 (51.6%)
9
5 8 , 9
Operating
Financing
Investing
2014
3
1
,
6
6
0
(
2
9.5%)
23,15 (2
1.
5
%
)
)
%
7 (49.0
2
5 2 , 6
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
1. Cash flows from operating activities
Net cash provided by operating activities in 2015
3. Cash flows from financing activities
Net cash flows used in financing activities was
was Rp43,669 billion (US$3,168 million) compared to
Rp6,407 billion (US$465 million) in 2015 compared
Rp37,736 billion in 2014.
with Rp10,083 billion in 2014.
Cash receipts from operating activities amounted to
Cash receipts from financing activities amounted to
Rp102,663 billion, increased by Rp12,300 billion, or
Rp20,634 billion, which increased by Rp7,565 billion,
13.6% compared to 2014. The source of fund are:
or 57.9% compared to 2014. The cash receipts from
- Cash receipts from customers and other operation
investing acitivites came from:
amounted to Rp100,702 billion, which increased by
- Proceeds from long-term bank loans amounted
Rp11,575 billion, or 13.0%.
to Rp10,698 billion,which increased by RpRp4,072
-
Interest income received amounted to Rp1,386
billion, or 61.5% compared to 2014.
billion which, increased Rp150 billion, or 12.1%.
- Proceed from short-term amounted to Rp2,558
billion, which decrease by Rp1,022 billion, or 28.5%
Cash disbursements by from operating activities
compared to 2014.
amounted to Rp58,994 billion, increased by Rp6,367
- Proceed from obligation amounted to Rp6,985
billion, or 12.1% compared to 2014. Cash disbursements
billion.
included primarily the following:
- Proceed from sale of treasury stock amounted to
- Cash disbursements for expenses amounted to
Rp68 billion.
Rp35,922 billion, which increased by Rp2,798 billion,
or 8.4%.
Cash disbursements from financing activities amounted
- Cash disbursements for employees amounted to
to Rp27,041 billion, which increased by Rp3,889 billion,
Rp10,940 billion, which increased by Rp1,346 billion,
or 16.8% compared to 2014. Cash disbursements
or 14.0%.
included primarily the following:
- Payment for income tax amounted by Rp9,299
- Cash deviden paid to the Company’s stockholders
billion, which increased by Rp1,863 billion, or 25.1%.
and to non-controlling stockholders of subsidiaries
2. Cash flows from investing activities
Net cash flows used in investing activities in 2015
- Repayment two step and bank loan amounted
Rp4,749 billion, which increased by Rp211 billion, or
was Rp27,421 billion (US$1,989 million) compared to
4.6%.
amounted to Rp8,783 billion and Rp7,831 billion.
Rp24,748 billion in 2014.
- Repayment of short-term amounted to Rp3,987
billion, which decreased by Rp1,740 billion, or 77.4%.
Cash receipts from investing activities amounted to
- Payment for bonds amounted to Rp1,005 billion.
Rp906 billion, decrease by Rp6,006 billion, or 86.9%
compared to 2014. The cash receipts from investing
activites came from:
- Proceeds from sale of property and equipment
amounted to Rp733 billion, which increased by
year enDeD DeCeMber 31, 2014
CoMpareD to year enDeD DeCeMber 31,
2013
Rp232 billion, or 46.3%.
In 2014, operating activity accounted for the largest cash
- Claim for insurance amounted to Rp119 billion, which
receipts Rp90,363 billion, or 81.9% of total, an increased
decreased by Rp93 billion, or 43.9%.
compared to Rp82,768 billion in 2013, in line with
increased in cash receipts from customers. Cash receipts
Cash disbursements from investing activities amounted
to Rp28,327 billion, decrease by Rp3,333 billion, or
from financing activities amounted to Rp13,069 billion and
investing activities Rp6,912 billion in 2014 compared to
10.5% compared to 2014. Cash disbursements were
Rp5,956 billion and Rp1,654 billion in 2013. This increased
used for:
- Acquisition of property and equipment amounted
to Rp26,499 billion, which increased Rp1,701 billion,
or 6.9%.
- Acquisition of intangible assets amounted to Rp1,439
billion, which increased Rp111 billion, or 8.4%.
- Placement of time deposit amounted to Rp146 billion.
was primarily due to time deposit and bank loans.
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Cash receipt
2014
2013
1 . 8 %)
1
9 (
6
1 3 , 0
)
%
3
.
6
(
2
1
9
,
6
8 1.9 %)
9 0 , 3 6 3 (
Operating
Financing
Investing
5,956 (6.6
%
)
4 (1.8 % )
5
6
,
1
% )
( 9 1 . 6
82,7 6 8
The majority of cash disbursement used for operating activities amounted to Rp52,627 billion, or 49.0%, from total
expenses in 2014 for personnel, operation and maintenance followed by expenditures for investment activities amounted
to Rp31,660 billion, or 29.5%, was partly acquired to acquisition of property an equiptment and financing activities
amounted to Rp23,152 billion, or 21.5% for cash dividend paid and bank loans. Composition of disbursements for all
three of these activities in the year 2014 and 2013 display below.
Cash Disbursement
2014
2013
23,152 (
2
1
.
5
%
)
)
%
7 (49.0
2
5 2 , 6
19,283 (
2
1
.
5
%
)
%)
4 (51.4
9
4 6 ,1
2
4
,
3
5
6
(
2
7.1%)
3
1
,
6
6
0
(
2
9.5%)
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147
Operating
Financing
Investing
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
1. Cash flows from operating activities
Net cash provided by operating activities in 2014 was Rp37,736 billion (US$3,047million) compared to Rp36,574
billion in 2013. The increase was primarily due to an increase of Rp7,407 billion, in cash receipts from customers and
other operator, and our interest income received was increased by Rp404 billion, or 48.6%. This was partially offset
by an increase in cash payment for expense of Rp5,707 billion, or 20.7%, and increase in payment for taxes of Rp493
billion, or 7.5%, and payment for interest cost of Rp435 billion, or 29.5%.
2. Cash flows from investing activities
Net cash flows used in investing activities in 2014 was Rp24,748 billion (US$1,999 million) compared to Rp22,702
billion in 2013. This increase was primarily due to an increase of Rp5,845 billion, or 28.8% in acquisition of property
and equipment and intangible assets, placement in escrow account Rp2,121 billion, or 100%, acquisition of long-term
investments by Rp1,467 billion, or 7,335.0% and increased in advances for purchases of property and equipment by
Rp1,033 billion. This was partially offset by Rp6,178 billion on our proceed in time deposit.
3. Cash flows from financing activities
Net cash flows used in financing activities was Rp10,083 billion (US$814 million) in 2014 compared with Rp13,327
billion in 2013. This decreased was due to an increased in proceed from loan and other borrowing by Rp7,089 billion,
or 195.5%. This decreased was offset by an increase in cash devidends paid to our stockholders by Rp2,384 billion,
or 18.3% and payment from loan and other borrowing by Rp1,485 billion, or 23.8%.
otHer inforMation relateD to finanCial overvieW
obligation
a. Contractual obligation
The following table sets forth information on certain of our material contractual obligations as of December 31, 2015.
Contractual Obligations
Korporat
By Payment Due Dates
Total
Less than 1
year
1-3 years
3-5 years
More than
5 years
(Rp billion)
(Rp billion)
(Rp billion) (Rp billion) (Rp billion)
Long-Term Debts(1)(5)
29,430
3,201
11,423
5,961
8,845
Capital Lease Obligations(2)
Interest on Long-term Debts and Capital
Lease Obligation(6)
Operating Leases(3)
Unconditional Purchase Obligations(4)
4,580
17,845
42,464
15,061
641
3,066
4,948
15,061
1,296
4,793
1,210
2,912
1,433
7,074
14,439
4,791
18,286
-
-
-
Total
109,380
26,917
31,951
14,874
35,638
(1) see notes 17-20 to our Consolidated Financial Statements
(2) related to the leases of the slot of the tower, property and equipment under RSA, transmission installation and equipment, data processing
equipment, office equipment, vehicles and CPE assets
(3) related primarily to leases of leased line, telecommunication equipment and land and building
(4) capital expenditure committed under contractual arrangements
(5) excludes the related contractually committed interest obligations
(6) see “risk management - risk factors - we are exposed to interest rate risk”
(7) Less than 1 year = 2015, 1-3 years = 2016-2017, 3-5 years = 2018-2019. more than 5 years = 2020 thereafter
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
See Note 39 to our Consolidated Financial Statements for further details on our contractual commitments. In
addition to the above contractual obligations, as of December 31, 2015, our contribution Rpnil for defined benefit
plan program and Rp15 billion for post-healthcare benefit program rupiah. See Notes 33 and 35 to our Consolidated
Financial Statements.
b. indebtedness
Consolidated total indebtedness consisting of short-term and long-term loans and other borrowings as of December
31, 2015, 2014 and 2013 were as follows:
Indonesia Rupiah
US Dollar1
Japanese Yen2
Total
As of Desember 31,
2015
2014 (Restated)
2013
(Rp billion)
(US$ million)
(Rp billion)
(Rp billion)
31,041
2,779
792
34,612
2,252
202
57
2,511
20,013
2,643
796
23,452
17,543
1,734
979
20,256
(1) The amounts as of December 31, 2012, 2013 and 2014 translated into Rupiah at Rp12,170, Rp12,385 and Rp13,785 = US$1, respectively,
being the Reuters average rates for US Dollar at each of those dates
(2) The amounts as of December 31, 2012, 2013 and 2014 translated into Rupiah at Rp115.77, Rp103.59 and Rp114,52 = Yen 1, respectively,
being the Reuters average rates for Yen at each of those dates
Of our total indebtedness, as of December 31, 2015, Rp4,444 billion, Rp12,719 billion, Rp7,171 billion and Rp10,278
billion were scheduled for repayment in 2016, 2017-2018, 2019-2020 and thereafter, respectively.
Composition of indebtedness
2,764 (8.0
%
)
( 2 . 3 %)
2
9
7
6 ( 8 9.7%)
5
3 1 , 0
Rupiah
US$
Yen
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
liquidity
a. liquidity Sources
The main source of our corporate liquidity is cash
• Bank Mandiri loan facility in the amount of Rp75
billion;
• BRI loan facility in the amount of Rp42 billion;
provided by operating activities and long-term debt
• BSM loan facility in the amount of Rp346 million;
through the capital markets as well as long-term and
and
short-term loans through bank facilities. We divide our
• Syndicated loan facility of BNI, BRI and Bank Mandiri
liquidity sources into internal and external liquidity.
in the amount of Rp103 million.
1. internal liquidity Sources
To fulfill our obligations we rely primarily on our
Working Capital
Net working capital, calculated as the difference between
internal liquidity. as of December 31, 2015, we had
current assets and current liabilities, amounted to Rp1,976
Rp28,117 billion in cash and cash equivalents available,
billion as of December 31, 2014 and Rp12,499 billion
which increased by Rp10,445 billion compared to
(US$907 million) as of December 31, 2015. The increase in
Rp17,672 billion as of December 31, 2014.
net working capital was primarily due to:
• An increase in cash and cash equivalent of Rp10,445
Cash receipts primarily from customer amounted
billion;
to Rp98,002 billion, are used for payment of
• An increase in prepaid taxes of Rp1,782 billion;
operational expenses, acquisition property, plan
• An increase in advance and prepaid expenses of
and equiptment, long-term investment, payment of
Rp1,106 billion;
short-term bank loan and obligation.
• A decrease in current maturities of long-term liabilities
of Rp2,057 billion, and
Our internal liquidity strength is reflected in our
• A decrease in short-term bank loans of Rp1,208 billion.
current ratio, which we calculate as current assets
divided by current liabilities, maintain over 100%. As
of December 31, 2015, our curent ratio was to 135.3%
compared to 106.1% as of December 31, 2014.
2. external liquidity Sources
Our primary external sources of liquidity are short
and long-term bank loans, bonds and notes payable,
and two-step loans. In 2015 we used external
liquidity of Rp20,561 billion.
A net increase in current liabilities primarily due to:
• An increase in accrued expenses of Rp3,036 billion;
• An increase in trade payable of Rp1,632 billion; and
• An increase in taxes payable of Rp897 billion.
We believe that our working capital is sufficient for
our present requirements. We expect that our working
capital will continue to be addressed by various funding
sources, including cash from operating activities and
bank loans.
b. external outstanding liquidity Sources
As of December 31, 2015, we had undrawn loan
facilities which include the following sources of unused
liquidity:
Solvency
We have strong ability to meet our debt obligations
reflect to our ratio: debt to equity ratio, debt to EBITDA
• CIMB Niaga loan facility in the amount of Rp582
and times interest earned ratio. Our ability to meet our
billion;
debt (short-term and long-term) depending on source
• BNI loan facility in the amount of Rp2,572 billion;
• Bank Ekonomi Raharja loan facility in the amount of
of liquidity.
Rp41 billion;
• The Bank of Tokyo Mitsubishi UFJ, Ltd loan facility in
the amount of Rp380 billion;
• PT Bank Sumitomo Mitsui Indonesia loan facility in
the amount of Rp380 billion;
• Bank ANZ loan facility in the amount of Rp410
billion;
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS a. Current liabilities
Our ability to pay our current liabilities is indicated by the ratios on the table below:
Rasio
Current ratio
Quick ratio
Cash ratio
2015
1353%
133.8%
87.4%
2014 (Restated)
106.1%
104.6%
63.3%
b. non-Current liabilities
Our ability to pay our debt is indicated by the ratios on the table below
Rasio
debt to equity ratio
debt to EBITDA
times interest earned ratio
2015
37.0%
67.3%
20.7%
2014 (Restated)
27.3%
51.4%
25.2%
2013
116.0%
114.2%
74.3%
2013
26.4%
48.5%
27.8%
For detail discussion about our debt, see Notes 16-20 to
We have made provision for
impairment of trade
our Consolidated Financial Statements.
receivables based on the collective assessment of
receivable Collectibility
Our receivable collectability, indicated by the ratios
average collection period that show an average of days
historical impairment rates and individual assessment of
its customers’ credit history, amounted to Rp3,048 billion
in 2015 and Rp3,096 billion in 2014.
that we take to collect our receivable and receivable
The Group does not apply a distinction between related
turnover that show how many times in average the funds
party and third party receivables in assessing amounts
invested in receivable are turned in one year. Our average
past due. As of December 31, 2015 and 2014, the carrying
collection period were 26.8 days in 2015 and 28.5 days in
amount of our receivables considered past due but not
2014. Our receivable turnover for 2015 and 2014 were 13.6
impaired amounted to Rp3,430 billion and Rp3,529 billion,
and 12.8.
respectively. Management believes that receivables
past due but not impaired, along with trade receivables
that are neither past due nor impaired, are due from
customers with good credit history and are expected to
be recoverable.
For detail discussion about our receivable, see Note 6 to
our Consolidated Financial Statements.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Capital Structure
Our capital structure as of December 31, 2015 is described as follows:
Short Term
Long Term
Debt
Equity
Amount
(Rp billion)
Portion (%)
602
34,010
34,612
75,136
0.5%
31.0%
31.5%
68.5%
Total Invested Capital
109,748
100.0%
We take a qualitative approach towards our capital
structure and debt levels. Periodically, the Company
Capital expenditures
In 2015, we incurred capital expenditures of Rp26,401
conducts debt valuation to assess possibilities of
billion (US$1,915 million). Our capital expenditures are
refinancing existing debts with new ones which have
grouped into the following categories for planning
more efficient cost that will lead to more optimized cost-
purposes:
of-debt. the Company also maintains its capital structure
at the level it believes will not risk its credit rating and
• Broadband services, which consist of broadband, IT,
which is comparable with its competitors.
application and content and service node;
The Company is required to maintain a certain debt-to-
transmission network, metro-ethernet and Regional
equity ratio and debt service coverage ratio by the lenders.
Metro Junction (“RMJ”), IP backbone and satellite;
In 2015, our debt to equity ratio was 0.37 and our debt
• Optimizing legacy, for fixed lines; and
• Network
infrastructure, which consists of core
service coverage ratio was 3.9 times, indicating our strong
• Capex supports.
ability to meet our debt obligations. During the years
ended December 31, 2015, the Company has complied
Of our Rp26,401 billion capital expenditure in 2015,
with the externally imposed capital requirements.
Telkom, as parent company, incurred capital expenditures
of Rp9,641 billion (US$699 million), Telkomsel incurred
For detail discussion about management policy on capital
capital expenditures of Rp11,321 billion (US$821 million)
structure, see Note 43 to our Consolidated Financial Statements.
and our other subsidiaries incurred capital expenditures
of Rp5,439 billion (US$395 million) as follows:
Table of Realization of Our Capital
Expenditure
Years Ended December 31,
2015
2014
2013
(Rp billion)
(US$ million)
(Rp billion)
(Rp billion)
Telkom (parent company)
9,641
699
8,099
5,313
Subsidiaries
Telkomsel
Others
Subtotal for subsidiaries
Total for Telkom Group
11,321
5,439
16,760
26,401
821
395
1,216
1,915
13,002
3,560
16,562
24,661
15,662
3,923
19,585
24,898
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
The realization of the future capital expenditures may
differ from the amounts indicated above due to various
telkom
• Procurement and
installation agreement for the
factors, including but not limited to the Indonesian and
modernization of copper cable network through
global economy environments, the Rupiah/US Dollar,
optimalization of asset copper cable network Trade In/
Yen or other applicable foreign exchange rates, the
Trade Off method.
availability of supply or vendor or other financing on
• Procurement and
installation agreement for the
terms acceptable to us, and also any technical or other
modernization of copper cable network through
problems in the implementation.
optimalization of asset copper cable network Trade In/
Composition of Capital expenditure
• Procurement and
Installation Agreement of the
Trade Off method.
• Procurement and Installation Agreement of Outside
Plant Fiber To The Home (OSP FTTH).
36.5
%
20.6 %
42.9%
Telkomsel
Telkom
Others
Material Commitment for Capital expenditures
We had material commitments for capital expenditure
Sulawesi Maluku Papua Cable System Project (SMPCS).
• Procurement and Installation Agreement of SMPCS
Package-2.
• Procurement and Installation Agreement of CISCO
WIFI.
• Procurement and Installation of IP Radio Equipment
Agreement for Backhaul Node-B Telkomsel Package-3
Platform NEC.
• Procurement and Installation of IP Radio Equipment
Agreement for Backhaul Node-B Telkomsel Package-2
Platform Huawei.
• Procurement and Installation of IP Radio Equipment
Agreement for Backhaul Node-B Telkomsel Package-1
Platform Ericsson..
• Procurement Agreement of Telkom-3 Substitution
(T3S) Satellite System.
• Procurement and Installation Agreement of Indonesia
WIFI Platform Huawei Access Points.
• Procurement and
Installation Agreement of the
Southeast Asia-Middle East-Western Europe 5 Cable
System (SEA-ME-WE5).
• Procurement and
Installation Agreement MSAN
Modernization for Acceleration of the Disposal of
Cooper Wire - Platform Huawei.
• Procurement and
Installation Agreement MSAN
modernization for Acceleration of the Disposal of
Cooper Wire - Platform ZTE.
under certain contractual arrangements. The contracts
• Procurement and Installation Agreement for DWDM
particular with regard to the procurement and installation
Platform Alcatel – Lucent (ALU).
of central telephone equipment, transmission equipment
• Procurement and Installation Agreement for Metro
and cable networks. Material commitment includes the
Ethernet Platform ALU.
following significant agreements related The Group and
• Procurement and Installation Agreement for PE-VPN
subsidiaries as follows:
CISCO.
• Procurement and Installation Agreement for Metro
Ethernet Platform Huawei.
• Procurement and
Installation Agreement
for
IP
Backbone System Expansion.
• Procurement and Installation Agreement for IPTV
Platform ZTE Capacity Expansion.
• The Procurement and Installation of the Sea Cable
Communications System (“SKKL”) of Sibolga-Nias,
Batam-Tanjung Balai Karimun, Larantuka-Kabalahi-
Atambua.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES telkomsel
• The Combined 2G and 3G CS Core Network Rollout Agreements.
• Technical Service Agreement (TSA) for combined 2G and 3G CS Core Network.
• 2G BSS and 3G UTRAN Rollout Agreement for the provision of 2G GSM BSS and 3G UMTS Radio Access Network.
• Maintenance and Procurement of Equipment and Related Service Agreement for Next Generation Convergence IP
RAN Rollout and Technical Support.
• Maintenance and Procurement of Equipment and Related Service Agreement for Next Generation Convergence
Core Transport Rollout and Technical Support.
• Online Charging System (“OCS”) and Service Control Points (“SCP”) System Solution Development Agreement.
• Technical Support Agreement to Provide Technical Support Services for the OCS and SCP.
• Development and Rollout Agreement for Customer Relationship Management and Contact Center Solutions.
• Technical Support Agreement for the Procurement of Gateway GPRS Support Node (“GGSN”) Service Complex.
• Development and Procurement of OSDSS Solution Agreement.
• Procurement of GGSN Service Complex Rollout Agreement.
We expect to fund the above commitment with our internal and external source of funds. Historically, we have good
level of leverage and able to finance capital expenditure In the year of 2015, we allocate capital expenditure adjusted
for the company’s business plan. See explanation on “Capital Expenditure
Material commitment for capital expenditure conducted by Company use several currencies. Following details of
material commitment by currency as of December 31, 2015:
Currencies
Rupiah
US Dollar
Euro
Total
Amounts in Foreign Currencies (in millions)
Equivalent in Rupiah (in billions)
-
320
0.21
-
10,648
4,410
3
15,061
Beside using rupiah currency, the value of the material commitment is denominated in foreign currencies, especially
in U.S. Dollars and Japanese Yen. The Company faces the risk of foreign currency exchange rates. In general, the risk
exposure of foreign currency exchange rate the Company is not material. Increasing risks of foreign currency exchange
rates on our obligations are expected to be offset by the time deposits and receivables in foreign currencies that are
equal to at least 25% of outstanding current liabilities.
For detail discussion on material commitments for capital investment, exchange rate and interest rate see Notes 39 and
42 to our Consolidated Financial Statements.
fixed asset
Our property and equipment is used for telecommunication operations, which mainly consist of transmission installation
and equipment, cable network and switching equipment. A description of these is contained elsewhere in Note 10 to
our Consolidated Financial Statements.
Except for ownership rights granted to individuals in Indonesia, reversionary rights to land rests with the Republic of
Indonesia, pursuant to Agrarian Law No.5/1960. Land title is designated through land rights, including Right to Build
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and sales of ADSs or common stocks. This summary is not
Usaha or HGU). Land title holders enjoy full use of the land
intended to describe all aspects of taxation which may be
for a specified period, subject to renewal and extensions.
relevant to the decision regarding purchases, ownerships
In most instances, land rights are freely tradable and may
or sales of ADSs or common stocks. Investors are
be pledged as security under loan agreements.
expected to consult with their tax advisors regarding tax
consequences in Indonesia and in the U.S.A on purchases,
We own several pieces of land located throughout
ownerships and sales of ADSs or common stocks.
Indonesia with the right to build and use for a period of
10 to 45 years, which will expire between 2016 and 2053.
a. taxation in indonesia
We believe that there will be no difficulty in obtaining the
extension of the land rights when they expire.
The following is an overview of the basic principles of
taxation in Indonesia over the ownership and disposition
We hold registered rights to build and use for most of
of common stocks or ADSs for individual foreigners or
our properties. Pursuant to Government Regulation
foreign companies that have common stocks or ADSs
No.40/1996, the maximum initial period for the right to
(“Foreign Shareholders”) who are Foreign Taxpayers
build is 30 years and is renewable for an additional 20
(“WPLN”). Under the taxation laws in Indonesia, WPLN is
years. We are not aware of any environmental issues
an individual who does not reside in Indonesia, an individual
that could affect the utilization of our property and
who was in Indonesia for no longer than 183 (one hundred
equipment. See Note 16, 19 and 20 to our Consolidated
Financial Statements.
eighty three) days within a period of 12 (twelve) months,
and entities not established and domiciled in Indonesia,
which operatng business or engaged in activities in a
As of December 31, 2015 the cost of fully depreciated
form of permanent entities in Indonesia, or that may
property and equipment of the Company that are still
receive or earn income from Indonesia by not operating
used in operations amounted to Rp54,168 billion. We are
business or engaged in activities in a form of permanent
currently performing modernization of network assets to
entities in Indonesia, namely, earn income from the
replace the fully depreciated property and equipment.
ownership or disposition of common stocks or ADSs. In
See Note 10 to our Consolidated Statements.
the case of WPLN domiciled in a country party to Double
insurance
Taxation Avoidance Agreement (“P3B”) with Indonesian
Government, the determination of a resident, either an
individual or entity, shall refers to the applicable provisions
As of December 31, 2015, property and equipment
in the P3B. If resident conflict is occurred with regard to
excluding land rights, with net carrying amount of
transactions between Indonesian-American citizen, the tie
Rp93,460 billion were
insured against fire, theft,
breaker rule as stipulated in the P3B between Government
earthquake and other specified risks, including business
of Indonesia and the U.S.A shall be applied.
interuption, under blanket policies totalling of Rp10,980
billion, US$99 million, HKD3 million and SGD34 million.
Management believes that the insurance coverage is
adequate to cover potential losses from the insured risks.
taXation
1. Dividend
Dividen yang kami umumkan untuk dibagikan dari
laba Dividend that we announced for distribution of
retained earnings and paid to the Shareholders with
WPLN status in respect to common stocks or ADSs are
subject to income tax in Indonesia, which at the date of
The following is an overview of tax consequences in
publication of this Annual Report the rate is 20% of the
Indonesia and Federal taxes of the United States of
paid amount (in terms of cash dividends payment) or
America (“U.S.A”) in relation with purchases, ownerships
the shareholder ownership portion of the distributed
amount. A lower rate specified in P3B between the
Government of the Republic of Indonesia and the
country where WPLN is domiciled can be applied, if the
dividend recipient meets the following requirements:
(i) the recipient is the owner who gains benefit from
dividends, (ii) the recipient must be able to present a
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Certificate of Domicile of Non Resident For Indonesia
of Indonesia and the country where the Foreign
Tax Withholding form (DGT-1 Form or DGT-2 Form) as
Taxpayers are domiciled. In order to gain benefits
determined by the Indonesian Tax Authorities, which
from the applicable P3B, Foreign Taxpayers shall
completely and correctly filled out and authorized by
submit Certificate of Domicile of the Non Resident
the competent authorities in the country where WPLN
For Indonesia Tax Withholding (DGT-1 Form and/or
is domiciled, (iii) the recipient does not misuse P3B in
DGT-2 Form), which completely and correctly filled
accordance with the provisions on misuse prevention
out by the Foreign Taxpayers and authorized by the
of P3B. The Indonesian government is engaged the
competent tax authorities in their country.
P3B with a number of countries, including Australia,
Belgium, Canada, France, Germany, Japan, Malaysia,
the Netherlands, Singapore, Sweden, Switzerland, the
3. Stamp Duty
Stock transactions in Indonesia is subject to stamp
U.K. and the U.S.A. According to P3B between the
duty. Based on Government Regulation No.24 of
Indonesian Government and the U.S.A Government,
2000 regarding Amendment on Stamp Duty Rates
the income tax rate on dividends paid to WPLN is
and the Limit Amount of Nominal Price imposed with
10% (portfolio) or 25% (minimum share ownership/
Stamp Duty, stamp duty in the amount of Rp3,000
substantial holding of 25%).
2. Capital gains
Sale or transfer of common stocks traded on Indonesia
is
Stock Exchange (Bursa Efek
Indonesia/”BEI”)
shall be charged for any transaction value up to
Rp1,000,000 and any transaction value of more than
Rp1,000,000 shall be imposed by stamp duty in the
amount of Rp6,000.
subject to final income tax at the rate of 0.1% of
the transaction value. The income tax collection is
conducted by withholding tax mechanism made by
b. Certain Consideration regarding federal
income tax in the U.S.a
the stock organizer through stock brokers. In addition
Based on requirements of Internal Revenue Service
to final income tax of 0.1%, the founding shareholders
(“IRS”) which generally applied, tax information in this
at the time of initial public offering (IPO) was also
report (including its attachments) are not intended to be
imposed an additional final income tax at the rate of
used and cannot be used for the purpose of (i) avoiding
0.5% of the current value of the shares at the initial
any fines imposed by the U.S.A’s Internal Revenue Code,
public offering which is to be deposited itself into state
or (ii) promoting, marketing, or recommends to other
treasury by the issuer at no later than 1 (one) month
person any matter related to taxes. The following is a
after such shares are listed on BEI.
summary of some of the consequences of federal income
tax in the U.S.A in relation to the acquisition of ownership
Sale or transfer of common stocks that are not listed
on BEI or ADS (non-public companies’ shares in
and transfer of ADSs or common stocks by American
Shareholders who own ADSs or common stocks as capital
Indonesia), executed by Foreign Taxpayers other than
assets (generally, they use their property for investment)
Permanent Entities, is subject to final income tax in
under section 1221 of U.S.A Internal Revenue Code (the
Indonesia at the rate of 5% of the sale price. Mechanism
“Tax Code”). This summary is based on the U.S.A Federal
of income tax imposition on the sale or transfer of
laws of applicable income taxes, which can be interpreted
common stocks that are not listed on BEI or ADS is
differently or may change, possibly with retroactive effect.
withholding tax mechanism made by the Purchaser in
the case of the Buyer is a Domestic Taxpayer, or made
This summary does not address all aspects of the U.S.A
by the Non-Public Company which shares are traded in
federal income taxation that may be important for certain
the case of the Buyer is a Foreign Taxpayer.
investors in accordance with each of investment situation,
Sale or transfer of common stocks, both listed/
traded on BEI and common stocks of Non-Public
including investors who are subject to special tax (for
instance, financial
institutions,
insurance companies,
broker-dealers, partnerships and their partners, and tax-
Companies, executed by Foreign Taxpayers may
exempted organizations (including private foundations),
be exempted from withholding tax or lower rate
shareholders who are the U.S.A. Holder (sic), investors
depends on the provisions of the applicable
who will own ADSs or common stocks as part of
P3B between the Government of the Republic
straddle, hedging, conversion, constructive sales, or other
integrated transactions with the U.S.A federal income taxes
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS purposes, or investors who have their functional currency
elected to be treated as U.S.A citizens according to the
other than the U.S.Dollars, all of which may be subject to
tax laws. If a partnership (or other entities which treated
very different tax rules other than the summary below.
as a “transparent tax” entity for the U.S.A tax purposes
Moreover, this summary does not address considerations
is the holder of ADSs or common stocks, therefore, tax
relating to property tax and grants from the U.S.A federal
treatment of a partner in a partnership (or the stackholder
(sic) states, locals, or non-U.S.A tax considerations. Each
in “transparent tax” entity) generally depends on the
shareholder is advised to have consultation with their tax
status of the partners (or shareholders) and the activities
advisors concerning the U.S.A federal, states, locals and
of the partnership (or “transparent tax “ entities). For
non-U.S.A incomes, and other tax considerations of their
federal income tax purposes, the U.S.A citizens who
investment in ADSs or common stocks.
own ADSs will be treated as the owner who receives the
benefits of Common Stocks which represented by ADSs.
For the purpose of this summary, “U.S.A shareholder” is a
beneficial owner of ADSs or common stocks in which, for
1. threshold Classification of passive foreign investment
the U.S.A federal income tax purposes, (i) an individual
who is a citizen or resident of the U.S.A, (ii) a company,
Company (“piap”)
A non-U.S.A company, such as Telkom, will be treated as a
or other entities treated as a company for federal income
PIAP for the U.S.A Federal income tax purposes, if 75% or
tax purposes, corporated in, established under the laws
more of its gross revenues consists of a specific “passive”
of the U.S.A or the state or the District of Columbia, (iii)
income or 50% or more of its assets are passive. Based on
any entity established or organized in or under the laws of
the Company’s revenues and assets in 2014, we strongly
another jurisdiction if it is treated as a domestic company
believe that the Company is not classified as a PIAP.
in accordance with the tax laws, (iv) income from
Because of the status of PIAP is determined by intensive
property that is included in gross revenues for federal
facts made on annual basis, there is no guarantee that
income taxation purposes regardless of its sources, or
the Company is not or will not be classified as a PIAP. The
(v) the trust (A) which the implementation is the subject
following discussion regarding “Dividends” and “Sales
of major supervision of U.S. courts and owned by one
or Other Transfers of the ADSs or Common Stocks” are
or more American citizen who have the authority to
made on the basis that the Company will not be classified
control all substantial decisions or (B) that has otherwise
as a PIAP for the U.S.A Federal income tax purposes.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES stocks. The U.S shareholders who did not decided to
2. Dividends
Any distribution of cash dividends paid by the Company
claim a foreign tax credit for foreign taxes withheld, not to
claim a deduction, for federal income tax purposes which
out of earnings and profits as determined by the principles
in respect of the withheld, but only for a year in which
of the U.S.A Federal income tax, will be imposed with
the shareholders choose to do so for all credited foreign
income tax on dividends and will be included in the gross
income taxes.
income of the U.S.A Citizen Shareholders at the time it is
received. In general, the dividend recipient that is not a
Company will be subject to an income tax on dividends
3. Sale or transfer of aDSs or Common Stocks
In general, shareholders who are United States nationals
of a “qualified foreign Company” with a maximum of the
declare capital gains and losses arising from the sale or
U.S.A Federal tax rate of 15%, instead of the marginal
transfer of ADS or common stock, in the amount of the
tax rate which is applicable to an ordinary income,
difference between the realization amount upon such
so long that they have fulfilled the specific period of
transfer, with the tax base adjusted for the aforementioned
ownership requirement. As a note, as of January 1, 2011,
shareholders of ADS or common stock. Capital gains
dividends from a qualified foreign Company is treated as
or losses shall be long-term in nature, in the event that
an ordinary income with a maximum tax rate of 39.6%
such ADS or common stock has in the possession of the
applicable to dividends received by non-companies after
shareholder for more than one year, and shall be a source
the end of 2010. A non-U.S.A company (other than PFIC),
of gains or losses for the US for the purposes of the US
generally, will be treated as an eliglible foreign company
(i) if eligible to get benefits in entirety from the U.S.A
foreign tax credit.
tax treaties and which is determined by the Financial
Minister of the U.S.A to fulfill the purpose of this provision
and includes information exchange program or (ii) with
4. Consequences of a piap
In the event that the Company is classified as a PIAP
within a certain fiscal year, U.S. Shareholders are required
respect to dividends paid in the form of shares (or ADSs
to comply with special regulations that are generally
which is supported by such shares) that are ready to be
aimed at reducing or eliminating the benefits of Federal
traded on a stock exchange established in the United
U.S. income tax postponements, that may be gained
States of America. Upon the completion of applicable
by U.S. Shareholders from their investments in non-
tax treaty between the US and Indonesia, which has been
U.S. Companies that do not distribute all their gains on
determined by the Minister of Finance has fulfilling this
the current basis. In this regard, U.S. Shareholders may
purpose and we believe that we are eligible to get benefit
be subject to regular income tax fees over (i) gains
from the treaties. In addition, because the ADSs are listed
recognized upon the sale of ADS or common stock and
on NYSE, an established securities market in the U.S.A,
(ii) distribution surplus paid upon ADS or common stock
therefore, it is considered to be easily traded on the stock
(in general, distributions that exceed 125% of the annual
exchange. The amount of cash distributed in Rupiah shall
distribution average that we pay over the period of three
equal with the U.S.Dollars value of the Rupiah at the
prior fiscal years). Furthermore, U.S. Shareholders shall
date of receipt of the distribution, regardless of whether
be subject to interests on such gains or distribution
the amount is actually converted into the U.S.Dollars
surpluses. Aside from that, the maximum tariff of 15%
at that time. The profit or loss, if any, is recognized on
of the Company’s dividends shall not be applied if the
the subsequent sale, conversion, or other disposition in
Company is to be considered as a PIAP.
Rupiah, and generally will be a source of regular income
or loss. Generally, dividends received from the ADSs or
common stocks are not qualify for deduction of dividends
received by the company.
5. income tax reserves and information Disclosure
requirements
U.S. income tax reserves and information disclosure
requirements generally apply towards several payments
Dividends will generally be regarded as income from
made to certain non-cooperative shareholders. A tax-
foreign sources for credit purposes of the U.S. foreign
paying party shall be required to withhold its income tax
tax. The U.S. shareholders may be eligible, subject to a
number of complex limitations, to claim a foreign tax
credit in respect with a foreign withholding tax imposed
on dividends received because of ADSs or common
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS reserve from the payment of dividends, or from the result
from continuing operations before taxes for the effect of
of sales or the payment of ADS or common stock in the
an event or transaction.
U.S. territory or by a U.S. buyer or broker to a shareholder,
except for exempted recipients, in the event that such
Material Contract
shareholder fails to provide the correct tax identification
number or is unable to fulfill the exceptions to the
In 2015 and 2014, we did not enter into any new material
requirements concerning income tax reserves. The size of
contracts nor did we amend any existing material
the income tax reserve has been 25% in the years leading
contracts, other than contracts entered into or amended
to 2014. Income tax reserves are not additional taxes,
in the ordinary course of business as disclosed at Note 39
and are eligible to be credited to Federal U.S. income
of our Consolidated Financial Statement.
tax liabilities of U.S. Shareholders, or, in the event that it
exceeds his/her/its liabilities, the tax would be returned
by the Internal Revenue Service (“IRS”) if a tax return
claim has been submitted to the IRS.
Material informations of investment,
expansion, Divestment, acquisition and
Debt/Capital restructure
C. tax incentives
In December 2015, The Company used the economic
In 2015, we did some activities related to investments,
divestments, acquisitions and debt/capital restructuring.
policy package V in the form of tax incentives with a
The activities are as follows:
special tax rate for revaluation of assets as stated in
the Ministry of Finance Regulation No.191/PMK.010.2015
jo PMK No. 233/PMK.03/2015. In accordance with the
regulation, The company should reassess the fixed assets
a. investment
1. Metra
On November 30, 2015, Metra acquired 13,850 shares of
in fair value which appraised by the Public Appraiser
TelkoMedika (equal to 75% ownership) with acquisition
Service Office or other appraisals which lincensed by the
cost amounting to Rp69.5 billion. TelkoMedika engaged
Government before December 31, 2016. The Company
in health services, procurement services and medicine
paid the final Income Tax amounted to Rp750 billion and
services,
including the establishment of pharmacies,
filed a letter No.C.Tel.282/KU000/COP-I000000/2015
hospital, raw treatment, clinic, or other health care support.
dated December 29, 2015 regarding to application of
Revaluation of Assets in the purpose of taxation in
2015. It was submitted on December 30, 2015. As of the
2. telin
On May
19, 2015, Pachub Acquisition Co. On
date of approval and authorization for the issuance of
Telekomunikasi Indonesia International (USA) has 100%
the consolidated financial statements, the assesing of
direct ownership.On May 29, 2015, Telkom USA and
revaluation of assets is still in process.
Pachub Acquisition Co entered into an agreement and
Materiality limitation
business combination plan with AP Teleguam Holdings,
Inc. As of the date of approval and authorization for the
issuance of the consolidated financial statements, the
Materiality in our Consolidated Financial Statement was
business combination is still in process.
based on According to BAPEPAM/LK decision letter No.
KEP-347/BL/2012 about Presentation and Disclosure
of Financial Statements Public Company dated June
b. expansion
In 2015, we have no expansion transaction.
25, 2012, with appendix Regulation No. VIII.G.7:about
Presentation of Financial Statements of the Company or
Public Company where items is 5% of the total assets for
asset items, 5% of the total liability for the liabilities items,
5% of the total equity for equity accounts, 10% of revenue
for items of comprehensive income, and 10% of the profit
c. Divestation
In 2015, we have no divestation transaction.
d. acquisition
In 2015, Based on notarial deed No.09 dated December
18, 2015 of Utiek Rochmuljati Abdurachman, SH., MLI,
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Mkn., approved by MoLHR through its decision letter No.
b. On February 15, 2016, Telkomsel filed an appeal to
AHU-0948616. AH.01.02 dated December 22, 2015, Sigma
the Tax Authorities for underpayments of corporate
bought PT Media Nusantara Data Global’s shares, which is
income tax amounting to Rp250 billion (including
engaged in data center activities.
e. bond issued
On June 16, 2015, the Company issued Bonds I Telkom
penalty Rp81.1 billion). As of the issuance date of these
financial statements, the appeal is still in process (Note
30e.ii The Consolidated Financial Statements).
Phase I 2015 respectively:
Changes in accounting policy
• Rp2,200 billion for Series A, time period 7 years
• Rp2,100 billion for Series B, time period 10 years,
The consolidated financial statement of the Group is
• Rp1,200 billion for Series C, time period 15 years, and
prepared in accordance with the Indonesian Financial
• Rp1,500 billion for Series D, time period 30 years and
Accounting Standards
(“SAK”), encompassing
the
listed in IDX.
Indonesian Financial Accounting Standards Statements
The bonds are secured by all of the Company’s assets,
(“PSAK”) and the Indonesian Interpretations of Financial
movable or non-movable, either existing or in the future.
Accounting Standards (“ISAK”) issued by the Indonesian
Financial Accounting Standards Board of the Indonesian
The underwriters of the bonds are PT Bahana Securities
Institute of Accountants, and the Regulation of the Capital
(“Bahana”), PT Danareksa Sekuritas and Mandiri Sekuritas
Market and Financial Institutions Supervisory Agency
and PT Trimegah Sekuritas, and the trustee is PT Bank
Permata Tbk.
(“Bapepam-LK”) No. VIII.G.7 regarding “The Presentation
and Disclosure of the Financial Statements of Stock
Issuers or Public Companies”, as attached in Decision
The Company received the proceeds from the issuance
KEP-347/BL/2012.
of bonds on June 23, 2015.The funds received from the
public offering of bonds net of issuance costs, were used
The consolidated financial statements present the relevant
to finance capital expenditures which consisted of wave
information that can be compared with the previous
broadband, backbone, metro network, regional metro
period. In addition, the Group also presents an additional
junction, information technology application, support,
statement of financial position for an initial period where
and merger and acquisition.
there restospektif application of accounting policies,
retrospective restatement or reclassification of accounts
The company also has to paid the principal of the Bonds
in the financial statements. Additional balance sheet per
II Series A Year 2010 amounted Rp1,005,000,000,000,
January 1, 2014 are presented in the consolidated financial
- (one trillion five billion rupiah), which matures on
statements due to the retrospective application of IAS 24
July 6, 2015.
Post-Employment Benefits (revised 2013) and IAS 50,
Financial Instruments: Presentation (Revised 2014) (Note
For further detail, see Note 19a to our Consolidated
2ab The Consolidated Financial Statements).
Financial Statements.
Material information of Conflict of interest
and/or affiliated transaction
Accounting standards and interpretations that have
been approved by the Financial Accounting Standards
Board (“DSAK”), but not yet effective for the current
year financial statements is disclosed in note 2. A The
In 2015, we have no conflict of interest or affiliated
Consolidated Financial Statements.
transaction.
Material information and facts after
accountant reporting Date
a. On January 14, 2016, Telkom Akses drawdowns on the
credit facility from BNI amounting to Rp97 billion.
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Significant Differences between ifaS
indonesia and ifrS
the King of Digital in the Region”. We are committed to
continuing the development of our telecommunication
infrastructure so as to further strengthen our Company in
1. land rights
Based on PSAK, land rights is listed as a fixed asset and
Indonesia and globally.
is not amortized unless evidence exists to indicate that
In line with our objectives, we classify our network
the extension or renewal of such land rights, most likely
infrastructure
into
two categories, namely, our
or definitely, cannot be achieved. The cost to arrange the
international networks infrastructure, to support the
extension or legal renewal of land rights is recognized
our international expansion program, and our national
as an intangible asset and shall be amortized for as long
network infrastructure, which supports the IDN program.
as the legal age of such rights or for the duration of the
economic life of the land, whichever one is briefer. Based
international networks
on IFRS, land rights is listed as a finance lease and is
presented as being part of fixed assets. The land right is
We operate international gateways in Batam, Jakarta, and
amortized for the duration of the lease period.
Surabaya to route outgoing and incoming calls on our IDD
service (“007”).
2. transaction with related parties
Based on Bapepam-LK Regulation No. VIII.G.7 regarding
the Presentation and Disclosure of the Financial
Statements of Stock Issuers or Public Companies, related
We curreny own or have interests in global submarine cable
infrastructure that connects the continents of Europe, Asia,
and America through submarine cable system consortiums
entities of the government are entities that are controlled,
for the Batam Singapore Cable System (BSCS), Dumai
jointly controlled or are influenced by the government.
Malacca Cable System (DMCS), Asia America Gateway
The term ‘government’ in this instance refers to the
(AAG), Singapore Japan Cable System (SJC), Southeast
Minister of Finance or Regional Governments that are
Asia-United States (SEA-US) and
Indonesia Global
shareholders of an entity. Based on IFRS, related entities
Gateway (IGG) which will soon be constructed.
of the government are entities that are controlled, jointly
controlled, or influenced by the government. The term
We, through our subsidiary Telin, are also a consortium
‘government’ in this instance refers to the government,
member in the South East Asia – Middle East -Western
government institutions and similar bodies, be it local,
Europe 5 (“SEA-ME-WE 5”) submarine cable system
national or international.
operational overvieW
netWorK infraStrUCtUre anD
DevelopMent
We believe that our achievement in 2015 was the result
and the Southeast Asia – United States (“SEA – USA”)
submarine cable system. SEA-ME-WE5 is a submarine
cable system with a length of approximatelly 20,000 km
stretching from Dumai, Indonesia to several countries in
Southeast Asia, France and Italy, with direct connection
from Indonesia to Europe. This submarine cable system
has a capacity of 24 tera bits per second using 100 Gb
technology. Construction began in September 2014
of our consistency in carrying out three main focus
and the cable system is expected to begin carrying
strategies, namely maintaining double digit growth for
commercial traffic in the fourth quarter of 2016. Telkom
Telkomsel, the Indonesia Digital Network (“IDN”) program
and NEC completed the landing of the SEA-ME-WE 5
for “Driving the Digital Business” and international
submarine cable in Medan, North Sumatra on January
expansion “Stretch and Expand International Business”.
25, 2016. SEA–USA is submarine cable system with a
length of approximatelly 15,000 km connecting Manado
In connection with our previous “Great to Break 100/300”
(Indonesia), Davao (Philippines), Piti (Guam), Oahu
strategy and target to reach Rp100 trillion in revenues
(Hawaii, United States), and Los Angeles (California,
and Rp300 trillion in market capitalization in 2015, our
United States). Construction began in March 2015 and the
Directorate of Network, Information and Technology, and
cable system is expected to begin carrying commercial
Solution had established a systematic framework derived
traffic in the fourth quarter of 2016.
from our strategic plans and key initiatives. We’ve also
made various strategic plans to support our vision to “Be
To support international services for both voice and data,
Telin operates 25 points of presence (“POP”) in various
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parts of the world, including in Asia (Dubai, Singapore,
id-Con is a strategic initiative that focuses on providing
Hong Kong, Malaysia, Tokyo and others), Europe (London,
a design, development and delivery of TIMES services
Frankfurt and Amsterdam) and the USA (Ashburn, New
platform converging to Telkom Group customers. This
York, Los Angeles, San Jose and Palo Alto).
converged services platform is leveraged on our data
center facilities, which has reached the Tier-4 design
We plan to continue with the development of our
category and is supported by a cloud management
international network
infrastructure to support our
platform to ensure the reliability and scalability of the
international expansion strategy and vision to be “The
TIMES services.
King of Digital in the Region”. Is the plan to focus the
international network infrastructure expansion in the
2. id-Ring: development of our transmission network
10 countries (Singapore, Hong Kong and Macau, Timor
infrastructure into an IP-based and optical backbone
Leste, Australia, Myanmar, Malaysia and Brunei, Taiwan,
network.
U.S.A, Kingdom of Saudi Arabia (KSA).
In terms of broadband infrastructure (id-Ring), we
national network
are actively developing infrastructure through the
Indonesia Digital Network program. To date, wee have
built fiber optic cable infrastructure totalling 81,895 km
We believe that in order to achieve our vision to become
in length from Aceh to Papua, including the Sulawesi
“The King of Digital”, infrastructure development and
Maluku Papua Cable System (“SMPCS”), which will
the provision of connectivity are very important, hence,
we will continue to actualize digitization in Indonesia
provide a positive impact on equitable access to
broadband information and communication, with the
through the three IDN components, namely id-Access,
more similar quality in all regions of Indonesia.
id-Ring and id-Con.
We continue to pursue development of our network
3. id-Access: development of our customer access
network infrastructure into a high speed broadband
infrastructure to offer a more efficient and cost-competitive
serviceas part of the Government’s Master Plan for the
Acceleration and Expansion of Indonesia’s Economic
access network through fiber optic and Wi-Fi networks.
We are currently focusing on developing new products
for our IndiHome service, which provides “Triple Play”
Development (“MP3EI”) in line with our transformation
services consisting primarily of internet on fiber or
into a TIMES provider under our IDN program. In the
high speed internet, home phone and IPTV (UseeTV
framework of developing high-quality, efficient and
Cable). IndiHome also provides additional or add-on
competitive infrastructure in terms of the costs in delivery
features such as IndiHome Telephone Mania, IndiHome
services, we continue to pursue the development and
Global Call, MelOn, IndiHome View and Trend Micro
improvement of our network infrastructure, known as
Security System.
Collaborative Network Optimization Project which was
built and operated by Telkom Group.
fixed Wireline network
As of December 31, 2015, we managed 10.3 million fixed
Our IDN program involves the following three program
wireline (fix voice) connections. The following table sets
developments:
1. id-Convergence (“id-Con”): convergence of the node
service network infrastructure into a multi-service and
multi-screen integrated NGN.
forth data related to our fixed wireline network as of the
dates indicated.
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id-Con is a strategic initiative that focuses on providing
a design, development and delivery of TIMES services
platform converging to Telkom Group customers. This
converged services platform is leveraged on our data
center facilities, which has reached the Tier-4 design
category and is supported by a cloud management
platform to ensure the reliability and scalability of the
TIMES services.
2. id-Ring: development of our transmission network
infrastructure into an IP-based and optical backbone
network.
In terms of broadband infrastructure (id-Ring), we
are actively developing infrastructure through the
Indonesia Digital Network program. To date, wee have
built fiber optic cable infrastructure totalling 81,895 km
in length from Aceh to Papua, including the Sulawesi
Maluku Papua Cable System (“SMPCS”), which will
provide a positive impact on equitable access to
broadband information and communication, with the
more similar quality in all regions of Indonesia.
3. id-Access: development of our customer access
network infrastructure into a high speed broadband
access network through fiber optic and Wi-Fi networks.
We are currently focusing on developing new products
for our IndiHome service, which provides “Triple Play”
services consisting primarily of internet on fiber or
high speed internet, home phone and IPTV (UseeTV
Cable). IndiHome also provides additional or add-on
features such as IndiHome Telephone Mania, IndiHome
Global Call, MelOn, IndiHome View and Trend Micro
Security System.
fixed Wireline network
As of December 31, 2015, we managed 10.3 million fixed
wireline (fix voice) connections. The following table sets
forth data related to our fixed wireline network as of the
dates indicated.
Operating Statistics
Exchange capacity
Installed lines
Lines in service(2)
As of December 31,
2015
2014
2013
2012
2011
20,376,070
(*)
20,376,070
(*)
13,946,801
13,918,369
13,908,003
12,180,214
10,341,807
10,650,652
11,109,156
11,005,208
10,276,887
9,698,255
9,350,806
9,034,010
8,688,526
(*) Exchange capacity and installed lines in as of December 31, 2015 includes capacity and lines from TDM-based, softswitch and IMS
technologies.
fixed Wireless network
On June 27, 2014, we entered into a Conditional Business
Data and internet network
In 2015, we continued to improve the quality of our data
Transfer Agreement with Telkomsel to transfer parts of
network by installing additional capacity and coverage.
our fixed wireless business and migrated subscribers to
As of December 31, 2015, we provided broadband access
Telkomsel. We terminated our Flexi service on May 31,
of fiber optic with 10.0 million homes-passed. As of
2015 although the previous subscribers were able to use
December 31, 2015, our metro ethernet network expanded
their old Flexi telephone numbers till December 2015.In
into 96,866 Gbps which is able to provide broadband
total, we migrated a total of over 1.3 million subscribers
services throughout Indonesia. The Metro ethernet is
under our migration program.
Cellular network
Our cellular services, which are operated by our
subsidiary, Telkomsel, have the most extensive network
also used as the main link for the IP DSLAM, MSAN for
IndiHome broadband services, softswitch, IP VPN and
GPON broadband for mobile backhaul and corporate
business solutions.
coverage of any cellular operators in Indonesia. Telkomsel
As of December 31, 2015, we have extended the capacity
currently operates on the GSM/DCS, GPRS, EDGE, 3.5G
of our internet gateway to reach an installed capacity
and 4G networks. The GSM/DCS network consists of 15
of 590 Gbps. This ensures the adequacy of the internet
MHz of bandwidth on the 900 MHz frequency and 22.5
gateway capacity in anticipation of the expected growth
MHz of bandwidth on the 1.8 GHz frequency. Telkomsel’s
for both fixed and mobile broadband traffic. In 2015, we
3G network uses 15 MHz of bandwidth on the 2.1 GHz
also operated content distribution networks (“CDN”)
frequency. The range of cellular services on the GSM
with an aggregate capacity of 938 Gbps in collaboration
network provided by Telkomsel extends to all cities and
with Akamai, Google, Yahoo, Conversant and Edgecast.
districts in Indonesia. Telkomsel was the first operator in
To support our IPTV services, including TV on demand
Indonesia to commercially launch 4G services in December
and video on demand services, as of December 31, 2015,
2014. In 2015, Telkomsel added 17,869 BTS units (including
we operated one central CDN, 4 regional CDNs and 12
1,575 units of 4G BTS), and as of December 31, 2015,
edge CDNs.
Telkomsel’s digital network was supported by 103,289
BTS units (including 1,761 units of 4G BTS). In 2015, we
Throughout 2015, we continued to expand the scope of
added an additional 19,094 node B BTSs, bringing it to a
Indonesia’s Wi-Fi services by deploying additional network
total of 57,930 node B BTSs as of December 31, 2015.
access points either through
internal development
programs and various forms of cooperation with third
parties. As of December 2015, a total of 321,736 access
points have been installed.
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Data Center
Telkom through its subsidiary, Sigma, manages data centers. As of December 31, 2015, we had data centers in nine
locations, with an aggregate capacity of 1,073 racks. We intend to continue to expand the number of locations and rack
capacity in 2016. With the capabilities of this network, Sigma is able to provide integrated data storage solutions for
many companies in Indonesia, including for those located far from the major cities.
transmission network
In 2015, we focused on the development of our broadband network, which serves as the backbone for our entire
network infrastructure. Our backbone telecommunications network consists of transmission networks, switching
facilities and core routers, which connect multiple access nodes. The transmission links between nodes and switching
facilities comprise a terrestrial transmission network, in particular fiber optic, microwave and submarine cable system,
as well as satellite transmission networks and other transmission technologies.
The following tables sets forth certain information relating to our transmission network and IP backbone network as of
the dates indicated.
Transmission Network
As of December 31,
2015
2014
2013
Capacity (number of transmission medium circuits)
E1
STM-1
STM-4
STM-16
STM-64
STM-256
131,221
129,557
131,303
761
708
736
119
108
100
72
63
58
613
398
337
3
2
3
Note: The backbone transmission unit uses E1, STM1 (equivalent to 63 E1), STM4 (equivalent to 4 STM1), STM16 (equivalent to 4 STM4), STM64
(equivalent to 4 STM16), and STM256 (equivalent to 4 STM64). STM or Synchronous Transfer Mode (“STM”) is the unit typically used
in backbone transmission networks. Facilitating broadband services requires high capacity transmission networks using nxSTM-1
units. E1 units are used to support legacy services.
- Sulawesi Maluku Papua Cable System (“SMPCS”)
To increase our traffic capacity and broadband services in 34 eastern Indonesia cities, we are building a backbone
ring, known as SMPCS that connects these cities that have previously been served by satellite transmission. The
SMPCS is being developed in two segments, with the first segment 4,300 km long, serving 21 district capitals and
connecting Kendari, Ambon, Manado, Ternate, Sorong and Fakfak, and the second segment 3,155 km long, serving
13 district capitals and connecting Sorong, Jayapura, Timika and Merauke. The entire cable system is expected to be
completed around the end of 2016. As of December 31, 2015, 21 cities in the first segment and 13 cities in the second
segment have been connected and begun to use the new system, with improved latency times and increased traffic
from our operations, including Telkomsel’s, compared to satellite transmission.
- Satellite
We operate two satellites, namely Telkom-1 (108 E) and Telkom-2 (118 E). Telkom-1 has a capacity of 36 transponders
consisting of 24 standard C-Band transponders and 12 extended C-band transponders, while Telkom-2 has a
capacity of 24 standard C-band transponders. Both satellites are controlled from the main control station in
Cibinong, Bogor, West Java. To ensure the continuity of services, since early 2014, we have had a backup control
station in Banjamasin, Borneo.
In addition to our Telkom-1 and Telkom-2 satellites, we also leased a 55.84 TPE (transponder equivalent @ 36 MHz),
namely from Satellites of JSAT-5A (132 E) in the amount of 8.94 TPE, Eutelsat 172 A (172 E) in the amount of 10
TPE, Chinasat-10 (110 E) in the amount of 9.17 TPE, Intelsat-8 (169 E) in the amount of 7.98 TPE, KTSAT (75 E) in
the amount of 2.35 TPE, ABS-2 (75 E) in the amount of 1.14 TPE, TELSTAR-18 in the amount of 1.6 TPE (138 E) and
APSTAR-6 (134 E) in the amount of 14.66 TPE.
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To support our business strategy with regard to providing
Interoperable Payment Platform (such as designing the
TIMES services, we have entered into a contract for the
development of a payment platform to build ePayment
construction of the Telkom-3S satellite, which is currently
Environment as an applications laboratory test bed),
planned for launch in late 2016, and another contract for
and Smart Local Government Service Platform (such
the procurement of a Telkom-4 satellite, which is currently
as a prototype integrated government service platform
planned for launch around the end of 2017. Telkom-
which was developed in cooperation with third a party
3S has a 49 TPE capacity that consists of 24 standard
and our subsidiary).
C-band TPE, 12 Extended C-band TPE and 13 Ku-Band
TPE. Telkom-4 which is planned to be in orbital slot 108 E
• Designing
and
developing
vertical
industry
and will have coverage to India, has a capacity of 60 TPE
applications/services both for enhancing current
which consists of 24 standard C-band TPE with coverage
services and creating new services such as Shopping
of Indonesia, 24 standard C-band TPE with India coverage
Experience over TV and Home Control for IndiHome
and 12 extended C-band TPE with coverage of Indonesia.
fiber broadband service, Digital Payment for Games
We expect that Telkom-3S will replace Telkom-2 and
and e-Commerce, Smart City applications, and SME
Telkom-4 will replace Telkom-1.
enhancement applications.
We are also currently exploring the various alternatives for
• Enhancing open innovation activities by endorsing
cooperation with operators for the provision of capacity
startups products to market and fundraising to obtain
for Telkom including cooperation through long-term
leases, joint development of a satellite in an Indonesia
follow on funding. In 2015, we received 709 proposals
from startup to join our Indigo Incubator Program for
orbital slot and acquisition of satellites in the orbit.
external innovations. Some of the startups have already
succeeded in the market and strenghened our business
In addition to the above, we also have 161 IP backhaul
portfolio. These include startups in various segments,
links to our network as well as 322 earth station links with
including in the SME segment (Startup: Jarvis, Run
capacity of 1.36 Gbps. Transponder capacities for these
System), Mobile segment (Startup: Kakatu, Siji), and
links mostly through transponder capacity leased from
Enterprise segment (Startup: Goers, Privygate). Other
foreign providers.
reSearCH anD DevelopMent
startups are also in process of commercialization within
our Telkom Group. Three of our startups have also
obtained follow on funding from external investors.
As a technology-based company, we continue to focus
on product and service innovation through ongoing
research and development programs. Our research
and development activities are conducted under the
Innovation and Strategic Portfolio Directorate, Innovation
and Design Center (“IDeC”) unit, now under our Digital
Service Division. Our IDeC unit was mandated to enhance
current operated service and infrastructure, and innovate
new businesses by creating new products and solutions,
and leveraging infrastructure technology to create new
products and solutions.
Continuing our programs in 2014, we strengthened our
innovation activities in 2015 by:
• Designing new service platforms that are fundamental to
the development of the ecosystem for new businesses,
such as Open Platform for Connected Home Services
(such as developing and building
interoperable
platforms with various application services to support
and facilitate the success of our IndiHome sevice),
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business models for future revenue generators. In first half of 2015, we had two joint innovation programs with ZTE
for IPTV enhancement and Huawei for future broadband business models and services.
These activities were aimed to support our transformation into digital business company. Some of our business that
leveraged on technology and new products development were:
Product/Business
IndiHome Fiber
Smart City
Impact of technological or new products development
• Enable faster and aesthetic installation on premises by designing and implementing
OTP Box and transparent optical fiber.
• Creating new business opportunities on IndiHome by introducing and standardizing
hybrid set top boxes to the market.
Improvement of city service quality by introducing some smart city services/
applications to local governments and societies. The products introduced included City
Information for tourism ecosystem, Panic Button and City Surveillance System for city
security protection, Electronic Government Application for government public services,
and Big Data Analytic to enable accurate government decision support system.
UPoint Payment Platform
Facilitate increase in payment transactions, especially for games and applications, by
introducing new payment model for mobile communication users.
Managing Open Innovation
• Emergence of many new digital applications to amplify our digital business by
managing open innovation in our Indigo Program. The products being developed in
our Indigo Incubator Program cover almost all of our business portfolios (personal,
home, SME, enterprise).
• By operating a subsidiary for corporate venture capital, we also increase the values
of our startups in the market.
We routinely make investments to improve products and services. Total expenditure for investments was approximately
Rp14 billion, Rp4 billion and Rp11 billion in 2013, 2014 and 2015, respectively.
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS liCenSing
and basic telephony services previously owned by us
based on MoC Decree No.KP.162 of 2004 dated May 13,
To provide national telecommunications services, we
2004 ceased to be in effect. The licenses do not have a
have a number of product and service licenses that are
set expiry date, but are evaluated every five years.
consistent with the applicable laws, regulations or decrees.
Following the
issuance of MoCI Regulation No.01/
Cellular
Telkomsel holds
licenses to operate a nationwide
PER/M.KOMINFO/01/2010 (“MoCI Decree No.01/2010”)
mobile cellular telephone network using 15 MHz of radio
dated January 25, 2010 concerning the Provision of
frequency bandwidth in the 900 MHz band, 22.5 MHz of
Telecommunication Network, we were required to
radio frequency bandwidth in the 1.8 GHz band and 15
adjust our telecommunications
license to provide
MHz of radio frequency bandwidth in the 2.1 GHz band.
telecommunications services.
The licenses do not have a set expiry date, but will be
evaluated every five years. Telkomsel also holds licenses
In 2015, we commenced the process of adjusting licenses
from the Indonesian Investment Coordinating Board
relating to (i) fixed local network, (ii) long distance calls,
that permits Telkomsel to develop cellular services with
(iii) direct international calls and (iv) closed fixed network
national coverage, including the expansion of its network
operations, which we conduct once every five years. We
capacity. In addition, Telkomsel holds permits and licenses
also in the process of adjusting our license with respect to
from and registrations with certain regional governments
internet telephony services for public interests. Currently,
the MoCi is in the process of verifying and evaluating such
and/or governmental agencies, primarily in connection
with its operations in such regions, the properties it owns
adjustments.
and/or the construction and use of its BTS.
We have secured new licenses that have been adjusted as
required, of which are as follows:
fixed network and basic telephony Services
Based on the report submitted by us concerning the
In connection with the transfer of the Flexi business to
Telkomsel, in September 2014, the MOCI, through Decree
No.934 of 2014, approved the reallocation of the 800 MHz
frequency spectrum being used for our Flexi business
operation of fixed network and as part of the adjustment
to Telkomsel. This reallocation should be completed in
to MoCI Decree No.01/2010, we had our licenses adjusted
December 2015.
in 2010 for the operation of local fixed network, direct
long distance, international call and closed fixed network,
explained as follows:
international Calls
We commenced our international call service in 2004.
• MoCI Decree No.381/KEP/M.KOMINFO/10/2010 dated
Our license for operating a fixed network to provide
October 28, 2010 on the License of Operating Local
international call services was adjusted in 2010 to meet
Fixed Network and Basic Telephony Services Network
the requirements of MoCI Decree No.01/2010 with the
of PT Telekomunikasi Indonesia Tbk;
issuance of MoCI Decree No.383/2010. The license does
• MoCI
Decree
No.382/KEP/M.KOMINFO/10/2010
not have a set expiry date, but it will be evaluated in 2015.
dated October 28, 2010 on the License of Operating
Fixed Domestic Long Distance and Basic Telephony
We have a license to operate a closed fixed network
Service Network of PT Telekomunikasi Indonesia Tbk;
based on MoCI Decree No.398/KEP/M.KOMINFO/11/2010,
• MoCI
Decree
No.383/KEP/M.KOMINFO/10/2010
dated October 28, 2010 on the License of Operating
Fixed International Call and Basic Telephony Services
Network of PT Telekomunikasi Indonesia Tbk; and
• MoCI Decree No.398/KEP/M.KOMINFO/11/2010 dated
November 12, 2010 on the License of Operating Fixed
Closed Network of PT Telekomunikasi Indonesia Tbk.
Following the issuance of MoCI Decrees No.381, 382 and
383, our previous licenses for operating a fixed network
which amends the previous license to meet the provisions
in MoCI Decree No.01/2010. The license allows us to lease
the installed closed fixed network to, among others,
telecommunication network and service operators, and to
provide an international telecommunication transmission
facility through a SCCS directly to Indonesia for overseas
telecommunication operators.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES According
to
MoCI
Decree
No.16/PER/M.
KOMINFO/9/2005 dated October 6, 2005 concerning
iSp
We are licensed as an ISP under DGPI Decree No.83/KEP/
Provision
of
International
Telecommunications
DJPPI/KOMINFO/4/2011 dated April 7, 2011, as amended
Transmission Facilities
through SCCS, overseas
by Director General of Post and Informatics Operations
telecommunications operators wishing
to provide
Decree No. 302 of 2013. This license does not have a set
international telecommunications transmission facilities
expiry date but it will be evaluated every five years.
through the SCCS directly to Indonesia are required to set
up a partnership with a fixed network of international call
Telkomsel is also to provide multimedia internet access
services or closed fixed network provider. In line with MoCI
services with nation-wide coverage under DGPT Decree
Decree No.16/2005, the international telecommunication
No.213/DIRJEN/2010. This license does not have an
transmission facilities provided through SCCS are served
set expiry date, but it will e evaluated annually, with a
by us on the basis of landing rights attached to our license
comprehensive evaluation every five years.
to operate fixed network of international call services. We
have also secured landing rights based on the landing
right Letter No.006-OS/DJPT.6/HLS/3/2010 dated March
internet interconnection Service
We hold a license to provide internet interconnection
2, 2010 from MoCI.
services by referring to DGPI Decree No.331/KEP/M.
KOMINFO/09/2013 dated on September 24, 2013
On March 2, 2010, the MoCI issued Decree No.75/KEP/M.
regarding the license for Internet Interconnection Service
KOMINFO/03/2010 granting our subsidiary, Telin, a license
to operate a closed fixed line network which enables
(Network Access Point) for PT Telekomunikasi Indonesia
Tbk. This license does not have a set expiry date, but it
Telin to provide international infrastructure services.
will be evaluated every five years.
Separately, Telin secured landing rights in Indonesia from
the DGPT to provide international telecommunications
transmission facilities through SCCS.
voip
We are licensed to provide internet telephony services
bWa
In July 2009, we won a tender for a wireless broadband
access license and the right to provide BWA services in 12
zones, comprising eight zones on 3.3 GHz (North Sumatra,
South Sumatra, Central Sumatra, West Kalimantan, East
for public needs as stated in DGPT Decree No.384/KEP/
Kalimantan, West Java, JABODETABEK and Banten) and
DJPT/M.KOMINFO/11/2010 dated November 29, 2010 on
five zones on 2.3 GHz (Central Java, East Java, Papua,
Voice over Internet Protocol (“VoIP”) services. This license
Maluku, and the northern part of Sulawesi).
does not have a set expiry date, but it will be evaluated
every five years.
In August 2009, the MoCI issued Ministerial Decree
No.237/KEP/M.KOMINFO/7/2009
regarding
the
Telkomsel
is also
licensed to provide public VoIP
Appointment of the Winning Bidders
for Packet
services based on DGPT Decree No.65 of 2015 dated
Switched-Based Local Fixed Access Network Operators
February 3, 2015 which replaced Decision Letter No. 226/
Using the 2.3 GHz Radio Frequency for Wireless
DIRJEN/2009 dated September 24, 2009, regarding the
Broadband Services, as last amended by MoCI Decree
provision of ITKP services. THis license does not have a
No.325/KEP/M.KOMINFO/05/2012. Due to inadequate
set expiry date, but it will be evaluated every five years
implementation by the winning bidders, the MoCI later
by the Government.
issued Regulation No.19/PER/M.KOMINFO/09/2011 dated
September 14, 2011 (“MoCI Regulation No.19/2011”),
which released operators on the 2.3GHz radio frequency
from the obligation to use the particular technology
specified in the bid terms for the 2.3 GHz radio frequency,
which were set out in MoCI Regulation No.22/PER/M.
KOMINF0/04/2009 April 24, 2009 (“MoCI Regulation
No.22/2009”). Pursuant to MoCI Regulation No.19/2011,
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS operators on the 2.3 GHz radio frequency are now
permitted to freely choose their technology in providing
Data Communication System (“SiSKoMDat”)
We provide SISKOMDAT services under DGPI Decree
BWA on the 2.3 GHz radio frequency, subject to a
No.169/KEP/DJPPI/KOMINFO/6/2011 dated June 6, 2011
requirement that they pay an annual usage rights fee for
regarding License for Data Communications Systems
the third through the tenth year of the license period in
Services Operation for PT Telekomunikasi Indonesia Tbk.
which a technology divergent from that specified in MoCI
This license does not have a set expiry date but will be
Regulation No.22/2009 is used. On January 9, 2012, MoCI
thoroughly evaluated every five years.
announced that it plans to make available for bidding
additional 2.3 GHz radio frequency in the 2300-2360 MHz
range for BWA services utilizing neutral technology.
payment Method Using e-Money
Following
implementation of Bank
the
Indonesia
MoCI Regulation No.19/2011 also stipulates domestic
Indonesia No.11/10/DASP each dated on May 13, 2009
component obligations for telecommunications devices
regarding how to use card-based payment instruments
and equipment used in providing BWA on the 2.3 GHz
(“APMK”) and Bank
Indonesia Regulation No.11/12/
radio frequency. Initial domestic component obligations
PBI/2009 and Circular Letter of Bank Indonesia No.11/11/
are 30% for subscriber stations and 40% for base stations,
DASP each dated May 13, 2009 on e-money, Bank
Regulation No.11/11/PBI/2009 and Circular Letter of Bank
to be increased to 50% within five years.
As a result of the switch to neutral technology under
MoCI Regulation No.19/2011, we lost vendor support for
Indonesia has redefined the meaning of “principal” and
“acquirer” in operating APMK and e-money business.
In light of these regulations, Bank Indonesia confirmed
our status as an issuer of e-money based on letter of
our preferred technology, which is based on fixed BWA
Directorate of Accounting and Payment System of Bank
technology. Vendors instead preferred to support the
Indonesia No.11/13/DASP dated May 25, 2009.
mobile BWA technology selected by other operators.
Mobile BWA technology competes with Telkomsel.
We operate our e-money business under the brand names
We therefore returned 4 of the 5 zones, which we had
“T-cash”. With the issuance of Bank Indonesia Circular
received. We retained our BWA license for Maluku zone
Letter No.9/9/DASP dated January 19, 2007, Telkomsel
so we would continue to qualify as a BWA operator on
is also permitted to conduct APMK activities, with the
2.3 GHz and have the right to access the BWA networks
launch of Telkomsel Tunai prepaid card.
maintained by other operators.
Becoming a wireless broadband access operator is in
of adjustment as long as we and Telkomsel continue to
line with the transformation of our business to TIMES,
conduct our respective businesses and as long as we do
which requires us to have infrastructure that is capable
not violate any applicable regulation and as long as policy
of responding to an
increasingly complex market
makers do not amend or revoke such permits.
These permits do not have set expire date or a period
and the demand for ever more convergent products
and services, whether in the consumer, enterprise or
wholesale segments.
remittance Service
Based on a license from Bank Indonesia No.11/23/Bd/8, dated
August 5, 2009 and No.12/48/DASP/13, we and Telkomsel
In July 2011, we are licensed to operate packet switched
may operate as a money transfer services provider.
based on local fixed network by referring to MoCI Decree
No.331/KEP/M.KOMINFO/07/2011 dated July 27, 2011 on
the License of Operating Packet Switched Based Local
iptv
On April 27, 2011, we and TelkomVision together
Fixed Network of PT Telekomunikasi Indonesia Tbk.
obtained a license to operate IPTV services through the
This license does not have a set expiry date, but it will
MoCI Decree No.MCIT.160/KEP/M.KOMINFO/04/2011
be evaluated annually, with a comprehensive evaluation
regarding the Telkom and TelkomVision IPTV Service
every five years.
Consortium Agreement. In accordance with Regulation
15 year 2014 on Amendment of MCIT Decree No.11/
PER/M.KOMINFO/07/2010 regarding the Implementation
Services Internet Protocol Television (“IPTV”), that the
IPTV service can be applied nationally.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
Construction Services business license
(“iUJK”)
In 2015, we renewed our Level 5 IUJK which permits us to
The Telecommunications Law was implemented through
several Government Regulations, Ministerial Regulations
and Ministerial Decrees. The most important of such
conduct disaster recovery system construction services,
regulations include:
which is currently valid until June 2018. Our Level 7 IUJK
• Government Regulation No.52/2000
regarding
for the execution of construction services throughout
Telecommunications Services.
Indonesia expired in June 2015, and we do not intend to
• MoCI
Regulation No.1/PER/M.KOMINFO/01/2010
renew such permit as they are not in line with our areas of
dated January 25, 2010 regarding Operation of
expertise as a provider of telecommunications services.
Telecommunications Networks.
Content provider Services
Currently, we are in the process of applying for the
license Content Provider Services, which is expected to
be ready in 2016.
iMpaCt of tHe regUlation CHangeS
toWarDS tHe CoMpany
The framework for the telecommunications industry is
comprised of specific laws, government regulations,
ministerial regulations and ministerial decrees enacted and
issued from time to time. The current telecommunications
policy was first formulated and articulated in the
Government’s “Blueprint of the Indonesian Government’s
Policy on Telecommunications”, contained in MoC Decree
No.KM.72/1999 dated September 17, 1999.
1. telecommunications law
• MoC Decree No.KM.21/2001 regarding the Provision of
Telecommunications Services that was most recently
amended by MoCI Regulation No.8/2015 regarding
the Fourth Amendment of Decree of the Minister of
Communication No.KM.21/2001 regarding the Provision
of Telecommunications Services.
• MoC Decree No.33/2004 regarding Supervision of
Healthy Competition in the Provision of Fixed Network
and Basic Telephony Services.
• MoC Decree No.KM.4/2001 dated January
16,
2001 regarding the Determination of Fundamental
for National
Technical Plan National 2000
Telecommunications Development most recently
amended by MoCI Regulation No.17/2014 dated June
4, 2014 regarding the seventh amendment of MoC
Decree No.KM.4/2001 regarding the Determination
of Fundamental Technical Plan National 2000 for
National Telecommunications Development.
2. telecommunications regulators
The telecommunications sector is primarily governed
by Law No.36 of 1999 (“Telecommunications Law”),
In February 2005, the authority to regulate the
which became effective on September 8, 2000. The
telecommunications
industry was transferred from
Telecommunications Law sets guidelines for industry
the MoC to a newly-established Ministry, the MoCI.
reforms, including industry liberalization, facilitation of new
Pursuant to authorities assigned to him through
entrants and enhanced transparency and competition.
Telecommunication Law, the Minister of Communication
and Information sets policies, regulates, supervises and
The Telecommunications Law eliminated the concept of
controls telecommunications industry in Indonesia.
“organizing entities” thereby ending our and Indosat’s
On October 28, 2010, MoCI engaged
in certain
responsibility for coordinating domestic and international
organizational and administrative reforms that included
telecommunications services, respectively. To enhance
transferring licensing and regulatory authority to two
competition, the Telecommunications Law prohibits
newly established general directorates, the Directorate
monopolistic practices and unfair competition among
General of Posts and
Informatics Resources and
telecommunications operators.
Equipment (“DGRE”) and Directorate General of Post
and Informatics Operations (“DGPIO”) pursuant to MoCI
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Regulation No.17/PER/M.KOMINFO/10/2010 regarding
as last amended by MoCI Regulation No.8/2015 regarding
the Organization and Administration of Ministry of
the Fourth Amendment of Decree of the Minister of
Communication and Information. Following the reforms,
Communication No.KM.21/2001 regarding the Provision
certain adjustments were made through MoCI Regulation
of Telecommunications Service, are
the principal
No.15/PER/M.KOMINFO/06/2011 dated June 20, 2011
implementing regulations governing licensing.
regarding title adjustments in a number of Decrees
and/or MoCI regulations that regulate Special Materials
MoCI
Regulation No.1/2010
classified
network
in Post and Telecommunications and/or in Decrees of
operations into fixed and mobile networks. MoC Decree
the Director General of Posts and Telecommunications,
No.KM.21/2001 categorized the provision of services into
which transfer all substances related to the postal and
basic telephony services, value-added telephony services,
telecommunications sectors to the DGPIO including
and multimedia services.
licensing, numbering, interconnection, universal service
obligation and business competition. Meanwhile,
matters related to radio frequency spectrum and
standardization of telecommunications equipments
were transferred to the DGRE.
4. introduction of Competition in the
indonesian telecommunications industry
In 1995, we were granted a monopoly to provide local
fixed line telecommunications services until December
Following the enactment of the Telecommunications Law,
31, 2010, and DLD services until December 31, 2005.
the MoC established an independent regulatory body
as stipulated in MoC Decree No.KM.31/2003 dated July
Indosat and Satelindo (which subsequently merged with
Indosat) were granted a duopoly for provision of basic
11, 2003 regarding the Establishment of the ITRA which
international telecommunications services until 2004.
was later revoked by MoC Regulation No.KM.36/PER/M.
KOMINFO/10/2008 dated October 31, 2008 and amended
As a consequence of the Telecommunications Law, the
by MoCI Regulation No.1/PER/M.KOMINFO/02/2011
Government terminated our exclusive rights to provide
dated February 7, 2011 (“MoCI Regulation No.36/2008”).
domestic fixed line telephone and DLD services and
Pursuant to MoCI Regulation No.36/2008, the ITRA
Indosat’s and Satelindo’s duopoly rights to provide
was assigned the authority to regulate the Indonesian
basic international telephone services. Instead, the
telecommunication industry, including the provision of
Government adopted a duopoly policy to create
telecommunication networks and services. The ITRA which
competition between Indosat and us as comprehensive
is chaired by the Director General of Post and Informatics
service and network providers.
Operations and comprises of nine members, including
six members of the public, and three members selected
5. DlD Services
from Government institutions (DGRE and Director of
DGPIO and a government representative appointed by
To liberalize DLD services, the Government amended the
the Minister of Communication and Information).
National Telecommunications Technical Plan pursuant
3. Classification and licensing of
telecommunications providers
to MoCI Decree No.6/P/M.KOMINFO/5/2005 dated May
17, 2005 (“MoCI Decree No.6/2005”) to assign each
provider of DLD services a three-digit access code that
would permit their customers to select an alternative DLD
The Telecommunications Law organized telecommunication
services provider by dialing the three-digit access number.
services into following three categories: (i) provision
MoCI Decree No.6/2005 did not provide for immediate
of
telecommunication networks,
(ii) provision of
implementation of the three-digit system for DLD calls,
telecommunication services, and (iii) provision of special
but as the first DLD service provider, we were required
telecommunications services.
to gradually open our network to the three-digit access
codes in all coded areas throughout Indonesia by April 1,
Licenses issued by MoCI are required for each category of
2010. We were assigned the “017” DLD access code, while
telecommunications services. MoCI Regulation No.1/2010
Indosat was assigned “011”. The MoCI thereafter amended
and MoC Decree No.KM.21/2001 dated May 31, 2001
the National Telecommunications Plan as provided
regarding the Operation of Telecommunications Services,
in MoCI Decree No.43/P/M.KOMINFO/12/2007 dated
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES December 3, 2007, (“MoCI Decree No.43/2007”), which
Usage Fees for IMT-2000 Moble Cellular Operators at
delayed the deadline for the implementation of three digit
2.1 GHz Radio Frequency Band.
access code for DLD calls throughout all the area code in
• MoCI Decree No.191 Year 2013
regarding
the
Indonesia until September 27, 2011.
Determination of PT Telekomunikasi Selular as Winner
in the Selection of Users of Additional Frequency
Pursuant to MoCI Decree No.43/2007, we opened our
Bandwidth at 2.1 GHz Radio Frequency Band for IMT-
network to the “01X” three-digit DLD access service
2000 Moble Cellular Operators.
in Balikpapan by April 3, 2008. Since that date, our
customers are able to make DLD calls from Balikpapan
The Minister of Communication and Information released
by first dialing Indosat’s “011”. As stipulated in MoCI
his decree regarding the management of the 1,8 GHz
Regulation No.43/2007, we have provided a nation-
radio frequency band on April 29, 2015, through Decree
wide network for three-digit access code for fixed
No.19/2015 on 1800 MHz Radio Frequency Bands
and fixed wireless DLD with “01X” that can be used by
Regulation for the Management of Cellular Mobile
Indosat or other licensed operator starting September
Networks, in which cellular mobile network providers on
27, 2011. To date, no other licensed operators have
1800 MHz radio frequency band must reallocate the use
submitted a request to us to connect their networks
of radio frequency on 1800MHz radio frequency band by
and enable DLD access.
November 2015.
6. iDD Services
8. interconnection
We received our IDD license in May 2004 and began
The Telecommunications Law expressly prohibits
offering IDD fixed line services to customers in June 2004
monopolistic and unfair business practices and requires
using the “007” IDD access code. The Indosat IDD access
network providers to allow users to access other users
code is “001”. Our December 2005 interconnection
or obtain services from other networks by paying
agreement with
Indosat enables
Indosat’s network
interconnection fees agreed upon by each network
customers to access our IDD services by dialing “007” and
operator. Government Regulation No.52/2000 dated
our network customers to access Indosat’s IDD services
July 11, 2000 regarding Telecommunications Operations
by dialing “001”.
7. Cellular
provides that interconnection charges between two or
more network operators must be transparent, mutually
agreed upon and fair.
Cellular telephone service is provided in Indonesia on the
On February 8, 2006, the MoCI issued Regulation No.8/
radio frequency spectrum of 1.8 GHz (DCS technology),
PER/M.KOMINFO/02/2006 on Interconnection (“MoCI
2.1 GHz (UMTS technology) and 900 MHz (GSM and UMTS
Regulation No.8/2006”), mandated a cost-based
technology). The MoCI regulates the use and allocation
interconnection tariff scheme for all network and services
of the radio frequency spectrum for mobile cellular
operators
replacing
the previous
revenue-sharing
networks. Telkomsel has obtained frequency allocation
scheme. Under the new scheme, interconnection charges
for cellular services on the 900 MHz, 1.8 GHz and 2.1 GHz
are determined by the network operator on which a call
frequency bands. The allocation of bandwidth in the 2.1
terminates based on a long-run incremental cost formula.
GHz frequency spectrum is regulated by:
• MoCI Decree No.19/KEP/M.KOMINFO/2/2006 dated
February 14, 2006 regarding the Determination of
Winner of IMT-2000 Mobile Cellular Operator Selection
MoCI Regulation No.8/2006 requires operators to submit
to the ITRA annual RIO proposals containing proposed
interconnection tariffs for the coming year. Operators are
at 2.1 GHz Radio Frequency Band.
required to use the cost-based methodology in preparing
• MoCI
Decree
No.268/KEP/M.KOMINFO/9/2009
regarding the Determination of Additional Allocation
of Radio Frequency Bandwidth Blocks, Tariffs, and
RIO proposals, and the ITRA and MoCI are required to use
the same methodology in evaluating the RIO proposals
and approving interconnection tariffs.
Payment Scheme Radio Frequency Spectrum Right of
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
Pursuant to MoCI Regulation No.8/2006 and ITRA
9. voip
Letter No.246/BRTI/VIII/2007 dated August 6, 2007, we
submitted a RIO proposal to the ITRA in October 2007,
In January 2007, the Government implemented new
which covered adjustments for operational, configuration,
interconnection regulations and a five-digit access
technical and service offerings. In December 2007, we and
code system for VoIP services pursuant to MoCI Decree
all other network operators signed new interconnection
No.06/P/M.KOMINFO/5/2005. Under the Decree, the
agreements that superseded previous interconnection
prefix for VoIP, which was originally 01X, was changed
agreements between us and other network operators
to 010XY. On April 27, 2011, the MoCI issued Regulation
which also amended all interconnection agreements
No.14/PER/M.KOMINFO/04/2011, as partly revoked by
signed in December 2006.
MoCI Regulation No.11 of 2014, which imposed quality
control standards in relation to VoIP services and this
On February 5, 2008, the ITRA required that we and
became effective three months thereafter, to which we
other operators begin implementing the cost-based
and other operators must adhere to.
interconnection tariff regime. On April 11, 2008, pursuant
to Directorate General of Post and Telecommunication
10. iptv
(“DGPT”) Decree No.205/2008, the
ITRA and the
MoCI approved RIO proposals from all operators to
Several provisions in the MoCI Regulation No.11/PER/M.
replace previous interconnection agreements. The RIO
KOMINFO/07/2010
(“MoCI Regulation No.11/2010”)
approved in 2008 was effective until July 29, 2011 when
implemented as
new
interconnection charges were
regarding the
Implementation of
Internet Protocol
Television (IPTV) Service has been amended by Regulation
stipulated in ITRA Letter No.227/BRTI/XII/2010 dated
No.15/2014 regarding the Implementation of Internet
December 31, 2010 regarding the Implementation of
Protocol Television (IPTV) Service that became the legal
Interconnection Charges in 2011. This was the result of
basis for the IPTV licensing and regulates the provision
interconnection charges recalculation conducted in 2010
of IPTV services, including the rights and obligations of
by MoCI that was agreed on by all operators and outlined
IPTV providers, technical standards, foreign ownership
in a Memorandum of Understanding. The results of this
requirements and the use of domestic independent
interconnection charges reform caused a slight decrease
content providers.
in interconnection costs.
On December 12, 2011, the ITRA changed the SMS
MoCI Regulation No.11/2010 recognizes
IPTV as a
interconnection fee basis from a “Sender Keep All” basis
convergence of
telecommunications, broadcasting,
to a cost basis interconnection fee calculation which
multimedia and electronic transactions and provides that
required certain amendments to RIOs agreed upon in
only a consortium comprising at least two Indonesian
2011. MoCI Regulation No.8/2006 stipulates that the RIO
entities may be licensed as an IPTV provider.
of telecommunications network operators generating
operating revenue that is equal to or more than 25%
Referring to MOCI Regulation No.15/2014, the licenses
of the combined revenues of all telecommunication
that we needed, among others: (a) local fixed network
operators that serve the same respective segment, must
license, mobile network or fixed closed network
obtain ITRA’s approval, necessitating changes in our and
license, (b) operating internet access/ISP license, and
Telkomsel’s RIOs which were approved on June 20, 2012.
(c) broadcasting operation of subscription television
Up until the publishing of this report, no recalculation of
broadcasting services institution license.
interconnection fees for 2012 had been done as doing
so would have been preceded by an evaluation on
interconnection charges in 2011.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Each consortium must must together hold licenses as a
with domestic satellite operators, including us, to ensure
local fixed network provider, internet services provider
that no Indonesian satellite and terrestrial systems will be
and one broadcast service provider. This was in line with
disrupted by their operation.
the removal of the provisions concerning Provider License
the Broadcasting
Implementation of Broadcasting
12. Consumer protection
Subscription Institute via cable, become the Broadcasting
Implementation of Broadcasting Subscription Institute of
Under the Telecommunications Law, each network
Television Broadcasting.
provider is required to protect consumer rights in
relation to, among others, quality of services, tariffs
In the Government Regulation No.52/2005 regarding
and compensation. Customers
injured or damaged
the Broadcasting
Implementation of Broadcasting
by negligent operations may file claims against
Subscription
Institute (“LPB”) mentioned that the
negligent providers. Telecommunications consumer
broadcasting could be conducted via satellite, cable
protection regulations provide service standards for
and terrestrial. Broadcasting via satellite could reach
telecommunication operators.
nationwide, while cable and terrestrial have a range
of a particular region. LPB licenses of broadcasting via
13. USo
satellite owned by PT Indonusa (Telkomvision) became
our legal basis became our legal basis to enforce IPTV
All telecommunications operators, whether network
services nationally.
11. Satellite
or service providers, are bound by an USO regulation
to providing
that
to contribute
requires
them
telecommunication facilities and infrastructure in the
interest of opening equal access to telecommunications
Our international satellite business is highly regulated.
throughout all regions in Indonesia, which is generally
In addition to being subject to domestic licensing
done by way of financial contribution. MoCI Regulation
requirements and regulation for the use of orbital
No.32/PER/M.KOMINFO/10/2008 dated October
10,
slots and radio frequencies, as stipulated in MoCI
2008 regarding the USO (as amended by MoCI Regulation
Regulation, our satellite operations is also regulated by
No.03/PER/M.KOMINFO/02/2010 dated February
1,
the Radio Communications Bureau of the International
2010) (“MoCI Regulation No.32/2008”) stipulated, among
Telecommunications Union.
others, detail services that shall be provided in relation to
Furthermore, MoCI Regulation No.37/2006 dated
USO regulation, which is providing telephone, SMS and
December 6, 2006 requires foreign satellite operators to
internet access in remote and other areas of Indonesia
obtain a landing right license to operate in Indonesia which
that have been classified as USO regions where it is not
requires such foreign satellite operators to coordinate
economical to provide these services.
USO payment requirements are calculated as a percentage
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS of our and Telkomsel’s unconsolidated gross revenues,
Pursuant to Law No.28/2009 regarding Local Taxes and
net of bad debts and/or interconnection charges and/or
Local Fees, local governments are permitted to impose
connection charges. Pursuant to Decree No.45 year 2012
fees on the sites that we use for telecommunications
of the MoCI which was effective from January 22, 2013.
towers. The fees may not exceed 2% of the site’s assessed
The Decree stipulates, among other things, the exclusion
tax value. Currently, there are some 525 local (provincial
of certain revenues that are not considered as part of
and regency level) governments through out Indonesia
gross revenues as a basis to calculate the USO charged,
that may be authorized to impose these fees to increase
and changes to the payment period which was previously
in the future.
on a quarterly basis to become quarterly or semi-annually.
14. telecommunication regulatory Charges
15. telecommunications towers
On March 17, 2008, the MoCI issued MoCI Regulation
No.02/PER/M.KOMINFO/3/2008 regarding Guidelines on
On January 16, 2009, the Government issued Government
Construction and Utilization of Sharing Telecommunication
Regulation No.7/2009, which sets the types of non-
Towers
(“MoCI Regulation No.02/2008”). Under
tax state revenues that apply to the MoCI derived from
MoCI Regulation No.02/2008, the construction of
various services, including telecommunications.
telecommunications
towers
requires permits
from
the relevant governmental institution, while the local
On December 13, 2010, the Government issued Government
government determines the placement and locations at
Regulation No.76/2010 amending Government Regulation
to Government Regulation
No.7/2009. Pursuant
which telecommunications towers may be constructed.
In addition, telecommunications providers that own
No.76/2010, we are no longer required to pay right-of-use
telecommunication towers and other tower owners are
fees calculated with reference to the BTSs that we deploy
obligated to allow other telecommunication operators
in our network, except for BTSs deployed in our backbone,
to utilize their telecommunication towers without any
with effect from December 15, 2010. As a result, our right-
discrimination, with due regards to the technical capacity
of-use fees are now calculated based on the bandwidth of
of the respective tower.
the radio frequency spectrum that we use.
Since the operations of telecommunication towers involves
In addition to radio frequency spectrum right-of-
a number of relevant Government bodies, on March 30,
use fees, Government Regulation No.7/2009 requires
2009, a joint regulation is issued in the forms of Minister
all telecommunications operators to pay an annual
of Home Affairs Regulation No.18/2009, Minister of Public
license fee for telecommunication operation, which is
Works Regulation No.07/PRT/M/2009, MoCI Regulation
equal to 0.5% of unconsolidated gross revenues, net
No.19/PER.M.KOMINFO/03/2009 and Head of
the
of bad debts and/or interconnection charges and/or
Investment Coordinating Board Regulation No.3/P/2009
connection charges.
regarding Guidelines for the Construction and Shared Use
of Telecommunications Towers (“Joint Decree”).
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES The
Joint Decree
regulates
that
license
for
through appropriate training methods to empower
telecommunication tower construction is to be issued by
and improve their skills and expertise. Our competence
regents or mayors, and for Jakarta Province, its Governor.
development programs include aspects of business and
The Joint Decree also provides for tower construction
organizations, and includes product knowledge, control
standards and
requires
that
telecommunications
and compliance, related to the effectiveness of individual
towers be made generally available for shared use by
self-development, functional competence,
leadership
telecommunications service providers. The owner of
and character development of employees. As such, we
a telecommunications tower is allowed to collect a fee,
are committed to continue to develop the competencies
which is negotiated with reference to costs associated
and capabilities of all employees; to always nurture
with investment and operational costs, the return of
good labor relations with employees; and to create the
investment and a profit. Monopolistic practices in the
interactive engagement among employees. In addition,
ownership and management of telecommunications
the Company also expects that every employee is fully
towers is prohibited.
16. Content provider Service
Content provider service is regulated by the Ministry of
responsible for their self-development, and is committed
to generating superior performance in order to realize a
professional corporate culture and global standards.
Communication and Information through Regulation
The Company has developed a Human Capital Master
No.21/2013 on the Management of Content Provider
Plan to ensure the best management of Human Capital,
Services on Celullar Mobile Networks and Wireless Local
Static Networks with Limited Mobility, as ammended
in order to support the implementation of corporate
business strategy. Preparation of Human Capital Master
by the Ministry of Communication and Information
Plan was developed with reference to the long-term
Regulation No.6/2015 of February 6, 2015.
corporate planning and annual plans and business
fUnCtional overvieW
HUMan Capital
strategies of each company incorporated in the Telkom
Group. Preparation of Human Capital Master Plan also
refers to an internal analysis and current issues related to
Human Capital happens to the world’s leading companies.
Develop great leader, great people, and great
Culture
Directorate of Human Capital Management (HCM) Telkom
Related to human resource management, we are
committed to run the entire Human Capital program
has a great responsibility to continue to support the
that have been developed to reflect the essence of the
achievement of business objectives of Telkom Group
program clearly (Get The Essence); must be carried out
in order to position the Company as one of the largest
effectively and efficiently (Effective and Efficient); and
telecommunications companies in Indonesia. Directorate
using a personal approach or per individual employee
of HCM supports our business through the implementation
(Personalized Approach).
of a competency-based human resource development
strategy that is applied to manpower planning, the process
The principles of human resource management is reflected
of selection and recruitment, learning and development,
performance management and career development
in our Human Capital Master Plan, which is divided into:
• Strategic initiatives of Human Capital for a period of
programs, as well as compensation and benefits scheme.
five years in the future;
To ensure that all employees have the appropriate
• Key programs as the elaboration of a strategic initiative
competence respective field and always maintain good
of Human Capital;
quality in an effort to realize the Company’s vision, which
• Strategic guidelines for each manager of Human
is Be The King of Digital, the Company has developed
Capital in the Telkom Group; and
a competency development program that applies to all
employees of Telkom Group.
• Strategic planning of workforce within the next five
years, which contains the annual HR plan in each
company Telkom Group, including the projections
The program
in question
include a certification
of the amount of human capital and employee
program and global talent program. Both of these
productivity levels to be achieved within the next
programs are running in line with efforts to welcome
five years.
the ASEAN Economic Community (AEC) which starts
from the end of 2015.
Preparation of Human Capital Master Plan of Telkom Group
in an integrated manner will also assist the Company in
We believe that human resources are the most
managing human capital as a whole, on target, and ensure
important asset of the Company, and therefore we
the realization of the role of Human Capital as a corporate
have a strong commitment to developing the potential
strategic partner in order to achieve business goals that
of our employees. Employee development is done
have been set.
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS To meet the human resource needs of the business units, we have always relied on the principle of synergy and
optimization of internal resources available in Telkom Group. In addition, we strive to offset the number of employees
with HR competencies to keep pace with growing business portfolio to focus on Digital TIMES business. We also strive
to improve the synergy and efficiency to all subsidiaries of Telkom Group, and continue to infuse the application of the
Company’s core values that have been set.
optimalize resources, Creating value added
By 2015 the total number of employees of Telkom Group are 24,785 employees, consisting of 16,097 Telkom employees and
8,688 employees of its subsidiaries. Telkom’s number of employees decreased by 6.8% compared to position at December
31, 2014 amounted to 17,279 employees, in line with the continuation of multi-exit program as part of efforts to revitalize and
increase the efficiency of human resources has been running since 2002.
Number of Employee profile
Employee numbers as of December 31,
2015
2014
2013
Telkom
16,097
17,279
17,881
Subsidiaries
Telkom Group
8,688
8,005
7,130
24,785
25,284
25,011
Profile of Telkom Group employees based on the position was changed. In 2015, the number of employees at senior
management level amounted to 608 employees, increased from 2014 which to amounted 541 employees. Number of
employees in middle management positions amounted to 4,651 employees in 2015, increased from 4,181 employees in
2014. Meanwhile decrease in the number of employees based on position occurs at the level of supervisors amounted
13,017 employees in 2015, of 13,077 employees in 2014 and the number of employees in other positions, decrease to
6,509 employees in 2015 from 7,485 employees in 2014.
Employee profile by position
Position
Senior Management
Middle Management
Supervisor
Others
Total
Position
Position
Senior Management
Middle Management
Supervisor
Others
Total
Telkom
Subsidiaries
Telkom Group
2015
187
3,281
9,913
2,716
16,097
Telkom
151
2,939
10,233
3,956
17,279
421
1,370
3,104
3,793
8,688
608
4,651
13,017
6,509
24,785
2014
Subsidiaries
Telkom Group
390
1,242
2,844
3,529
8,005
541
4,181
13,077
7,485
25,284
%
2.5
18.8
52.5
26.3
100
%
2.2
16.5
51.7
29.6
100
In 2015, the composition of our employees by education level was dominated by university graduate amounted to
12,182 employees, while we had 5,248 pre-university employees, 4,855 diploma graduate employees, and 2,500 post-
graduate employees.
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Employee profile by educational background
Level of Education
Post Graduates
University Graduates
Diploma Graduates
Pre University
Total
Level of Education
Post Graduates
University Graduates
Diploma Graduates
Pre University
Total
Telkom
1,819
6,082
3,655
4,541
16,097
Telkom
1,738
6,159
4,093
5,289
17,279
2015
Subsidiaries
Telkom Group
681
6,100
1,200
707
8,688
2,500
12,182
4,855
5,248
24,785
2014
Subsidiaries
Telkom Group
598
5,610
1,091
706
8,005
2,336
11,769
5,184
5,995
%
10.1
49.2
19.6
21.2
100.0
%
9.2
46.6
20.5
23.7
25,284
100.0
Profile of employees by age in 2015 is as follows. Employees over the age of 45 years were amounted to 12,911 employees,
while employees under the age of 30 years amounted to 3,126 employees and employees between 31-45 years were
amounted to 8,748 employees.
Employee profile by age group
Age Group
<30
31 - 45
>45
Total
Age Group
<30
31 - 45
>45
Total
Telkom
893
3,386
11,818
16,097
Telkom
680
3,784
12,815
17,279
2015
Subsidiaries
Telkom Group
2,233
5,362
1,093
8,688
3,126
8,748
12,911
24,785
2014
Subsidiaries
Telkom Group
1,963
5,117
925
8,005
2,643
8,901
13,740
25,284
%
12.6
35.3
52.1
100.0
%
10.5
35.2
54.3
100.0
178
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PT Telkom Indonesia (Persero) Tbk
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS From the data on the composition of the Telkom Group employees based on gender, in 2015 employee profile was largely
dominated by male employees were amounted 19,312 employees compared to female employees were amounted to
5,473 as illustrated by the following table.
Employee profile by gender
Gender Group
Male
Female
Total
Gender Group
Male
Female
Total
Telkom
12,935
3,162
16,097
Telkom
14,091
3,188
17,279
2015
Subsidiaries
Telkom Group
6,377
2,311
8,688
19,312
5,473
24,785
2014
Subsidiaries
Telkom Group
5,824
2,181
8,005
19,915
5,369
25,284
%
77.9
22.1
100.0
%
78.8
21.2
100.0
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES iMpleMent innovative prograMS in tHe year of CUltUre
Throughout 2015, we created 10 program initiatives with the theme of ‘the year of culture’. The main program initiatives
focus on the activation of the cultural values within the companies that are part of our long term plan to build the “Great
Leader, Great People and Great Culture”.
Through Nurturing Culture Activation program, each unit activating the values of the corporate culture in the daily work
in a creative and fun way.
We believe that programs for cultural activation is the driving force for all employees to contribute the maximum
productivity to the Company while maintaining cultural entropy remains at the optimum point.
10 program initiatives are as follows:
Improve Worklife Balance
Nurturing Program for 4R
Career Committee
Employee Career Development Evaluation Committee
Post Assessment Development
Program Development of the Gap Dimensions Within Individual Assessment
Learning Solution with Aligned Business
Business Solutions Based on Case Studies in the Field through the Class Method
Culture Activation
Activate Cultural Values in Each Unit within the Company
Employee Volunteer Program
Social Program to Support Employee Social Activity in the Society
Creative and Innovative Communication
Creative Communication for Employee
Early Retirement Program
Early Retirement Program for Replacing with the New Generation
Dual Career and Simplify Remuneration
Expertise Career Path and Simplify Remuneration
Support Business Portfolios
Transformation Organization to Support Business Portfolio
ensuring talents acquisition
The strategic objective of our recruitment program is to get the best HR (find the best talent) in the labor market, so
that the objective of the Company to undertake the regeneration of Telkom’s future leader can be realized; and also to
strengthen our excellence in business. Our recruitment program consists of a fresh graduate recruitment process which
aims to capture potential future leader who has the qualities and competencies that can meet the global requirements;
besides that we also recruit professionals to get expert professionals with deep expertise (deeper skills). Fresh graduate
recruitment is done with a composition of 75% through our initiative with visits to leading universities (Talent Scout)
and 25% over regular admission. Therefore, in 2015 we held a series of rigorous selection program with the aim to
ensure the suitability of candidates to the Company’s needs. Recruitment program that is run by Telkom Group has
always relied on the optimization of internal human resources. The success of the recruitment process also relies on the
synergy between the Company and its subsidiaries whose activities include: the implementation of the career days, the
implementation of the campus recruitment, management of database sharing, sharing of infrastructure and facilities,
and other forms of synergy based on need.
In 2015, we have recruited 387 new employees.
HR Recruitment
Number (person)
2015
387
2014
224
2013
206
2012
30
2011
53
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS early retirement program
To create a more effective and competitive business
Following up the process of business transformation
focus on TIMES business, strengthening HR competence
environment, we also have an Early Retirement
is also done through learning and education focusing
Program (“ERP”). The program is run in line with the
on development and strengthening of competence. We
execution of the 2014 to 2018 Human Capital Master
give priority to learning processes that directly relate to
Plan which is expected to release 1,548 employees. This
business issues and ensure a direct impact on improving
program is offered to employees who are deemed to
the performance of the employees.
have met certain requirements in terms of education,
age, position and performance. In 2015, we spent
In preparing for the competition in 2015, Telkom began
Rp683 billion as compensation for 576 employees who
preparing for competency development and talent
participated in the ERP.
Strengthening
Development
Competency Based Human Resources Management
Competency
employee
(”CBHRM”)
into the digital age company. In addition to hard skills
(Telco 1.0) related infrastructure is also required soft
skills (Telco 2.0) related to product innovation business
(service development, partnerships, software and design,
customer experience management, customer data, the
financial model), big data related to the use of databases in
We define human capital competency development
particular customer data behavior (psychology, statistics,
strategy as outlined in the Human Capital Master Plan to
math) and digital (user experience, user interface, design).
align with the business strategy of the Company through
the division of CSS and Corporate Annual Message
HR competence development is done through training
(“CAM”). Furthermore, the competency development
and education that focuses on competence change and
strategy described in stages through the Learning
competence development, both directly and indirectly
Blueprint, Development of Curriculum (DACUM), Learning
related to the business strategy and operations. In
Road Map, and Human Capital Development Plan (“HCD
addition, we also organized various
improvement
Plan”) which is always updated to match the dynamics
programs and competency training for its employees
and needs of the ongoing business.
who are currently managed through the establishment
of CorpU. In 2015 Corpu has graduated as many as 187
Telkom Group’s competency management concept
people for certification. Leadership program has held 9
is based on the organization’s core competencies
courses, and has approved as many as 233 people. Regular
outlined in the Learning Blueprint, which subsequently
training has been carried out as many as 928 programs
developed into groups of core competencies aligned
with participants as many as 17,424 people.
with its business strategy and to enhance the ability of
individual employees.
Human Capital Investment
Telkom employee competency development efforts focus
Company spent Rp393 billion or average of Rp15.9 million
on:
per employee. In 2014, we spent Rp195 billion, or average
• the development of culture, which focuses on the
budget per employee of Rp7.7 million.
To implement training and education program in 2015, the
internalization and strengthening the Company’s core
values as the basis of cultural formation, namely Solid,
Speed, Smart called Telkom 3S;
• development role capability, which is focused on the
development of personal qualities required by each
chosen / defined role categories; and
• the development of appropriate capability in line with
the work demands.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Here is the amount of training conducted in the last five years.
Competence Development
Total training
2015
928
2014
1,191
2013
1,261
2012
774
2011
650
employee remuneration
By 2015, the establishment of policies and the provision of benefits to employees of Telkom will adopt more of the
philosophy of Total Rewards, as one form of competence and performance-based approach.
Simplify remuneration
Concept of Total Rewards
• Base Pay (Gadas, Tudas)
• Allowances (THR, Cutah, TPK,
Tupos)
• Perquisites (Cars, Club
Membership, Physical Exam)
• Retirement (DPLK, DPPK)
• Health Care (Yakes, AJB)
• Life And Disability (Askedir)
• Wellness Initiatives (IBO, Health
Paradigm)
• Time Off (Cutah, Cap, Cubes)
Telkom: 57%
Benchmark: 60-80%
It’s not only about remuneration
(foundational rewards), but
also how we integrate &
communicate foundational,
performance-based and career
& enviromental rewards as a
total rewards.
l o y e e va lUe propoSiti
o
n
r D S
a
perf
o p t iMiZe
o
r
p
M
e
l r e W
a
n
o
i
t
a
D
n
U
o
f
a
l
i
g
n
total
reWarDS
M
a
n
C
e
-
b
a
S
e
D
r
e
W
a
r
D
S
e
D riv
e
n
Career a n D
vironMetal r e W a r
S
D
• Base-Pay Increases (Kenga,
Kentudas)
• Short-Term Incentives (Quarterly
Incentive, Jasprod, Bonus, MTI)
• Long-Term Incentives (ESOP)
• Recognition (Telkom Award,
Reward)
Telkom: 31%
Benchmark: 20-30%
• Training & Development
• Coaching & Mentoring
• Career Management
Programmes
• Talent Mobility Programmes
• Discretionary Technology
• Flexible Work Programmes
• Work/ Life Programmes
• Employee Volunteer Program
• Well-Being Programme
Telkom: 12%
Benchmark: 10-20%
Based on Towers Watson Total Rewards Framework
From the point of view of employees, the monthly salary of course, is still the main attraction. Even more interesting
is the emergence of new factors are considered by the employees, namely certainty in pursuing the career ladder
and balance between work and personal life (worklife balance). These new factors are what we’re focusing in
developing new benefits policy for employees, to increase interest (attraction) and retention (retention) of the
recruits of human resources.
Associated with the global crisis still faced by the Company in 2015, the attraction and retention is becoming
increasingly important because of the difficult conditions, the best employees (Top Talent) shall be major contributors
to the growth of the company. The approach to the management of Top Talent in an integrated manner, the Company
has implemented Total Rewards based on Foundational Rewards, Performance Rewards, as well as the Career and
Environmental Rewards.
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
Telkom is committed to providing competitive remuneration package in accordance with laws in force. Periodically,
Telkom also carry out benchmarking market prices.
Based on the purpose of the remuneration, remuneration system components Telkom is divided into three (3) main
sections called 3P Remuneration System, which are:
• Pay for Person
The remuneration component which is presented in recognition of individual competencies of each employee in
accordance with the required competence profile in the current position and work period. Movement of pay for
persons through the adjustment of remuneration is determined based on the results of the competency assessment
and adjusted to the comparatio conditions of such remuneration.
• Pay for Position
The remuneration component given to appreciate the policy, expertise and accountability required for a position.
Movement of pay for positions through the adjustment of remuneration is determined by the class position of the
employee as well as the characteristics of Duties and Functions of their unit.
• Pay for Performance
The remuneration component granted to reward employee performance that successfully meet the targets set for
the period. The process of setting the remuneration of employees on pay for performance component is done by
considering the Individual Performance Value (NKI) and Units Performance Value (NKU).
Based on the type and nature of the components of remuneration, the Telkom Remuneration Structure consists of two
(2) main components, namely:
• Compensation
This component consists of Monthly Salary, Allowance, Leave Allowance and income tax (PPh 21).
• Benefit
This component consists of Fixed and Variable Benefits. The second sub-component is given in the form of Cash and
Non-Cash Benefits.
Relating to employee bonus scheme, the Company will normally be allocated a budget in the current year, but will
distribute them in the year following the financial statements audit process is completed and after approval by the
General Meeting of Shareholders (GMS). Bonuses are only given when the net income target is achieved.
The value of remuneration provided by the Company in the last five years are as follows:
Remuneration of Employees
Amount paid (Rp billion)
2015
11,874
2014
9,787
2013
9,733
2012
9,786
2011
8,555
employee reward
The company realizes the role of employee engagement as a key to guide the company to a higher level and achieve
success in running the business; is also a major force to achieve the ultimate goal of the Company. One of the variables
that can affect employee engagement is the award made by the company. In order for the main purpose of granting
appreciation to be successful, employees must have the view that both financial rewards and non-financial award are
valuable, hence effectively producing employees who are productive, engaged, and satisfied, which will ultimately
result in the Company’s desired performance.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Setting, management, and the granting of Award for Telkom employees must meet the following principles:
• Align - Award management must align with the Company’s performance in giving Awards.
• Fair, any employee who is entitled to an Award are those with higher contribution than employees who contribute
less, if it has met the criteria set.
• Objective, the nomination and determination of the prospective recipient of the award is done through proper,
transparent, and accountable assessment.
Granting Criteria for Internal Reward (Individual Recognition)
No
Type Of Award
Criteria For Prospective
Recipient
(Participating In Selection
Tests)
Basis For Considerations
1
2
3
4
5
The Best Leader
The Best Manager
The Best Staff
Top Talent
(Very Hipo & Hipo)
In line with Best People Masterpiece Program
(Find Best Talent)
Top Talent
(Very Hipo & Hipo)
In line with Best People Masterpiece Program
(Find Best Talent)
Top Talent
(Very Hipo & Hipo)
In line with Best People Masterpiece Program
(Find Best Talent)
The Best Innovator
All Employee
Religious Award:
a. Haji
b. Umroh
c. Ziarah Kristiani
d. Tirta Yatra
All Employee
(P3/K3 &Working Period Of
More Than 10 Years)
6
Telkom CSR Award
All Employee
The fact is that not all innovators are included in
The Top Talent Cluster
Religious awards are not solely to appreciate
achievements but also for the purpose of
character development according to The Telkom
Way. The stipulation on the working period of 10
years is to give the opportunities to Gen X etc
(Gen Y will still have many chances)
In accordance with The Employee Volunter
Program, not all TCSR contributors are included
in The Top Talent Cluster
7
Lomba Dinas IndiHome
All Employee
(Telkom Group)
In accordance with The Anorganic Program
Development Plan (Indihome)
Every year, we provide some form of recognition to increase employee morale in supporting the achievement of
business objectives, corporate value, quality service to the customer and employee performance.
it based HC Services
Human resources services based on information technology (“IT”) that we have developed since 2009 continues to
be optimized, such as e-Learning, Online Scholarship Registration, Olnline Individual Working Target W(“SKI”) Online,
Online Presence, Warrant Travel Agency (“ SPPD “), Online Leave, Online Career, Competency Assessment, Online
Distinct Job Manual, Online SPT, Retirement Application, Learning Card, ESOP Share Purchase Application, Application
Knowledge Management (KAMPIUN), and Health Information Website.
Since 2015, the HR service has initiated a project called Integrated Human Capital Management System (IHCMS) that
begins with the integration of all HR data of Telkom Group, including Subsidiaries and Affiliates in the same system so
as to facilitate the management for analysis and reporting.
Ingenium is a Fast Track application development and Online Career, ie applications that enable every employee to
make their own career plan in accordance with what they wanted. As a result, this system facilitates management in
selecting the most appropriate candidate to fill the position.
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS We also have implemented a variety of applications
such as process of automation, electronic memos, virtual
pension program
We have two retirement programs namely Defined Benefit
meetings, unified communication, shared files, online
Pension Plan (“PPMP”) and Defined Contribution Pension
surveys, personal workbook and intranet.
Plan (“PPIP”)
In addition, in order to strengthen internal communications,
a) Defined benefit pension plan (ppMp)
particularly related to HR policies, we provided the website
• PPMP pension calculation
for participants
is
of Human Capital Management, as well as employee
calculated based on years of service, salary level
helpdesk that can be accessed by employees who want
at retirement and is transferable to dependents
to know the various policies and other information related
if the employee dies. Telkom Pension Fund is in
to the management and development of the Employee
Corner in Telkom portal consisting of Employee Aspiration
charge of managing this program. The main source
of the Pension Fund is derived from contributions
and Vote Aspiration, as well as Employee Helpdesk,
of employees and
the Company. Employee
Employee Wiki and Employee Reference can be accessed
participation in the program is 18% of basic salary
by employees who want to know the various policies and
(prior to March 2003, the employee contribution
other information related to the management and human
rate was 8.4%, while the Company contributes
resources development.
the remainder, being reached Rp182 billion per 31
December 2013, Rpnil as of December 31, 2014 and
We also optimize media employee relations and human
Rpnil for the fiscal year ended on December 31, 2015.
resources service center to ensure the issues associated
• Telkomsel also conducts PPMP for its employees.
with employees can be handled and communicated
Through this program, employees are entitled to
effectively. We have also set up telephone facilities,
personalized service, email and website in order to
pension benefits that are calculated based on net
base salary or salary last received and the period of
facilitate communication between employees and HR.
service of employees. Telkom manages this program
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES based on an annual insurance contract. Until 2004,
b) Defined Contribution pension program (ppip)
the employee contribution to this program is 5% of
• Telkom holds a defined contribution pension plan
the salary paid every month, while Telkomsel pay
for permanent employees who were recruited since
the rest of the defined contribution. Since 2005, the
July 1, 2002. The PPIP is managed by Pension Fund
contribution to the program is conducted entirely
Financial Institutions (“DPLK”), in which employees
by Telkomsel. In addition, Telkomsel also provides
can choose among various DPLK which organizes
rewards program for employees with a long period
this program. The company’s annual contribution
of service in the form of cash or additional leave. This
to the PPIP is determined based on a certain
award is given to employees who have worked for a
percentage of the basic salary of the employee
certain period or upon termination of employment.
participant, which reached Rp6 billion, Rp6 billion
and Rp7 billion, respectively for the years ended
December 31, 2013, 2014 and 2015.
Expenses for Retirement Program
2015
2014
PPMP (Rp billion)
PPIP (Rp billion)
Nil
7
Nil
6
2013
182
6
2012
186
5
2011
187
5
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Health Service program
Health care for employees and their immediate family and dependents are managed by Yakes. These health services are
expected to have an impact on improving the productivity of the company. Every year we organize medical check-ups
for employees, which results in health status (stakes).
We have published a policy of healthy living paradigm. Health insurance is also provided to all employees who have
retired, including dependent relatives, in two types of funding, namely:
• Employees who are appointed as an employee prior to November 1, 1995 and have a service life of more than 20
years, are eligible for the guarantee of health services managed by Yakes Telkom;
• All other permanent employees obtain health services in the form of insurance benefits.
• Employees of subsidiaries are given medical benefits through health insurance program sponsored by the
government, known as BPJK.
The amount of costs that we spend on health insurance program for employees in the last five years is illustrated in the
following table:
Employee Health Service Expense
Total (Rp billion)
2015
174
2014
153
2013
162
2012
150
2011
121
industrial relation Management
Referring to the Presidential Decree No.83 / 1998 on the Ratification of ILO Convention No. 87 of 1948 concerning
Freedom of Association and Protection of the Right to Form Organization, Telkom employees has set up “Telkom
Employees Union” or “SEKAR”. Until December 31, 2015, SEKAR consists of 14,472 employees or 89% of the total
number of Telkom employees.
In accordance with Law No.13 / 2003 on Employment and Labour Agreement (“PKB”) and the Regulation of the
Minister of Manpower and Transmigration No.16 / 2011 on Procedures for the Preparation and Approval of the Company’s
Regulations and Development and Registration of Collective Labor Agreement, SEKAR owns the right to represent PKB
negotiations with the employees in the Company’s management.
By 2015, the industrial relations between management and SEKAR has strived to be better than in previous years
through a biennial program which is BKP Composition VI 2015-2017. To implement the program more effectively and
efficiently, we conducted a series of activities, among others:
a) training of pKb Composition
This training aims to equip the members of the negotiating teams of both the Management and of the SEKAR in
the preparation of PKB, providing a forum to get to know each other, to provide an understanding deep enough
in the early stages and the stages of PKB negotiations, and also that the preparation of PKB can run smoothly,
effective and efficient.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES b) Changes of pKb
PKB is structured as a reference the basic rules (parent rules) which contains simple basic things and will not be
changed during the validity period. Whereas matters of a technical nature are made separately as its own rules, but is
not an integral part of the PKB and at any time can be altered according to the needs of the record does not conflict
with the PKB parent.
c) bargaining of pKb vi
PKB VI negotiations in 2015-2017 conducted as much as 6 rounds and have resulted in agreement on the
remuneration system and a new non-remuneration. One deal was about Restructuring Remuneration which changes
monthly salary payment method which was the year the employee receives a salary as much as 21.5 times will be
changed to 15 times a year starting in 2016 and beyond; as well as an agreement on the total increase in salary a year
(Total Guarantee Cash) in 2016 and 2017 refers to the salary survey, inflation and the ability of the Company. These
negotiations is the fastest compared to the negotiations held in previous years. The costs incurred were much less
than the costs incurred in previous years, so that the course of negotiations to become more effective and efficient.
d) Signing the pKb vi
After the agreement between the negotiating teams of each party, and then signing the PKB VI on September 18,
20i15 in Simalem, Medan, North Sumatra by Telkom President Director and Chairman of Sekar Telkom witnessed by
the members of the negotiating teams of each party and also the Chairman DPD of Sekar Indonesia. The signing
marks the PKB VI collective agreement binding on all parties.
e) bipartite Cooperation of institution
Communication forum that required by the Labor Law between the Company and the union, carried out at least in
three months or any time within the period if there are issues need to be solved.
In addition to the above activities, Telkom as Parent Company conducts the fostering of management of industrial
relations to subsidiaries by providing troubleshooting guide of industrial relations and help resolve problems that
arise and dissemination of Telkom policies related to the management of industrial relations. Here’s a list of union
employees at each subsidiary:
Industrial Relation Management
Number of Telkom Employees (people)
Number of Sekar Employees (people)
Percentage of membership (%)
Number of Telkomsel Employees
(people)
Number of SEPAKAT members (people)
Percentage of membership (%)
2015
16,097
14,472
89.90
4,660
3,652
78.37
2014
17,279
15,526
89.85
4,588
3,723
81.15
2013
17,881
16,283
91.06
4,294
3,972
92.50
2012
19,185
17,931
93.46
4,550
3,731
82.00
2011
19,780
18,691
94.49
4,440
3,730
84.01
promoting Work-life balance
We provide the opportunity for all employees to participate in various extracurricular activities, especially those that
can support employee productivity. Employee extracurricular activities include the fields of religion, culture and sports.
In the religious field, extracurricular activities organized among other Telkom Group Christmas, Easter celebration
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
Telkom Group, Ecclesial Choir Song Contest, Book Fair, Qur’an recitation competition, Utsawa Dharma Gita, Sloka and
Ballad Reading, Musabaqoh Tilawatil Quran, Pesantren Ramadan, and others.
In the field of culture, the activities undertaken include Art of Gamelan, Kroncong, Bakti Bagi Negeri, Photography
(Photo - 135), Toastmaster Club (Public Speaking & Leadership), and others. For the field of sports, activities included
are Fishing, Tennis, Basketball, Bicycles, Motorcycles, Table Tennis, Nature Lovers, Zumba, Yoga, Aerobics, Tennis,
Running (Runner Telkom) and others.
This extracurricular activity we call 4R comprising of:
“Olah Ruh”
“Olah Rasa”
“Olah Rasio”
“Olah Raga”
Telkom Group Christmas, Easter celebration Telkom Group, Ecclesial Choir Song Contest,
Book Fair, Qur’an recitation competition, Utsawa Dharma Gita, Sloka and Ballad Reading,
Musabaqoh Tilawatil Quran, Pesantren Ramadan, and others.
Art of Gamelan, Kroncong, Bakti Bagi Negeri, Photography (Photo - 135), and others.
Toastmaster Club (PublicSpeaking & Leadership).
Fishing, Tennis, Basketball, Bicycles, Motorcycles, Table Tennis, Nature Lovers, Zumba,
Yoga, Aerobics, Tennis, Running (Runner Telkom) and others.
olimpiakom telkom group 2015
Olimpiakom Telkom Group is a major event for all Telkom Group employees. This event that is planned to be held
every three years is a form of work-life integration initiative that combines the elements of spiritual, sense, rational
and physical development (Olah Ruh, Olah Rasa, Olah Rasio dan Olah Raga) to foster The Telkom Way values
in order to achieve a balance in life and achieve optimal performance. Olimpiakom is also a means to develop
the talents and interests of Employees outside of their field of work. The Company realizes that by balancing
the professional and personal development of the employees, the Company will create a work culture with full
integrity, totality, and enthusiasm.
The 2015 Olimpiakom Telkom Group was held on 4-6 November 2015 with the theme of “Strengthening Smart Working
Through Worklife Integration and Strong Culture”. The event was attended by participants from Telkom Group with
work areas throughout Indonesia. The main event of Olimpiakom 2015 was held in a more festive atmosphere since it
also commemorates the 20th anniversary of the IPO (Initial Public Offering) of Telkom in 1995.
Areas conducted in the 2015 Olimpiakom Telkom Group include:
Areas
Branch
Spiritual Development
Spiritual Festival (MTQ, Church Choir, Sloka Reading, Religious Song Contests)
Culture Festival (Most Inspiring Culture Agent, Most Inspiring Role Model, Most Admired
Culture Activation Unit)
Sense Management
Art Expression Festival (group band competition, dangdut, stand up comedy)
Integrity Festival (integrity program internalization video contest, talking about integrity,
expression on picture)
Duta Telkom (male and female Telkom Ambassador)
Ratio Management
Frontliner Contest (best supervisor plaza, best CSR plaza, best agent 147 complaint
handling)
Sport
Sport Competition (futsal, volleyball, table tennis, tennis, badminton)
Health Paradigm (the value of health)
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PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Maskot Olimpiakom
OLLIE the mascot uses an approach that is in line with
Subsequently, the vision is realized through the following
the Olimpiakom logo. The concept of solidarity is
missions:
described by the combination of four colors of Body,
• to deliver solutions with outstanding value and
Spirit, Sense, and Ratio, shown by the heart and the head,
exceptional customer experience.
which represent the mind and the heart as the center to
• to deliver solutions that meet with market demands in
establish solidarity. The digital concept is shown by the
a fast time to market and cost efficient manner.
shape of the eyes and lips, which are bit art (a bit is the
• to provide an engaging working environment where
smallest digital unit). The expression of smiling lips and
people are inspired to collaborate and deliver their
piercing eyes depict intelligence and cheerfulness.
best work toward a common goal.
inforMation teCHnology
These missions set
the direction of
information
technology management through the initiatives to grow
The role of information technology (IT) is very vital for the
and implement digital culture, with the business objective
Company to support the business process, be it front office
of providing nation-wide converged and secured IT
or back office. As an inseparable part of all organization’s
platform as a foundation for the company’s digital
functions, information technology is organized based on
business expansion.
the strategic direction that is commonly consolidated in
the management of Network and IT Solution.
it operation Model Structure
The management of Telkom’s information technology
Telkom Group’s complex
information
technology
is based on the vision “To be Telkom Group’s Strategic
management requires good and solid operational
Technology Leader.” This vision illustrates that aside from
governance. Telkom Group’s information technology
managing the internal IT, Telkom’s IT covers the IT Group’s
operation model is directed to be able to provde
strategy and coordinates subsidiaries IT plans to ensure
operational and business supports to the Company
sinergy and harmony.
in effective and efficient manners, by optimizing the
resources owned. The implementation of Telkom Group’s
We believe that IT will play and important role in
IT is manifested in the forms of Shared Service Operation
realizing Telkom’s vision to be the leader in the TIMES
and Center of Excellence. Below is the IT Operation
leader regionally; IT is used to support the innovative
Model chart:
business service transformation through the selection
of effective, best-in-class technology, that can be
optimally
implemented. Through
IT, competitive
capabilities are developed to create new business
opportunities for the company.
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PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
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PREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
telkom group
Subsidiaries
business Units
Other Telkom Group
Subsidiary
business/Customer relationship Management
Change Service
run Service
Strategy
Strategy
architecture
architecture
Development
(Unique Core app.)
Service
Management
& operation
api factory
big Data
Development
(Common app.)
insfrastructure
Management
ng 055
Supplier relationship Management
3rd party Supplier
it Management
Coordinated
at telkom
group level
retained in
respective
Subsidiaries
Shared in it Shared
Service Center
Centralized in Center
of excellence
This IT Operation Model is focused on provision of services to achieve cost efficiency and improvement of productivity,
through: subsidiaries for special services, Shared Services Center for general and standard services, and Center of
Excellence for the development of new IT capabilities
To support the company’s strategy, IT develops strateguc capabilities through these initiatives:
IT Operating Model, Agile IT & Security Infrastructure, Next Generation OSS, Seamless Customer Experience, Big Data
Analytics, Cloud Services, Mobility Services, Business-to-Business (B2B) dan Application Programmng Interface (API) Factory.
telkom’s CSS grand Strategy
it imperatives Capabilities to Develop
Sustaining existing
Customer
Scaling new
Customer
Scoping future
Customer
IT Operating Model
Agile IT & Security Infrastructure
Nex Generation OSS
Seamless Customer Experience
Big Data & Anaylics
Cloud Services
Mobility Services
Business to Business (B2B)
API Factory Including SDP
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PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES PREFACE
FINANCIAL AND
PERFORMANCE
HIGHLIGHTS
MANAGEMENT REPORT
GENERAL INFORMATION
OF TELKOM INDONESIA
PT Telkom Indonesia (Persero) Tbk
06
CORPORATE
GOVERNANCE
249
250
254
255
276
278
285
285
288
290
295
Internal Control System
Internal Audit Unit
External Audit
Risk Management
Legal Issues
Access and Transparency of Information
Relationship With Stakeholders
Business Ethics and Corporate Culture
Violations Reporting System
(Whistleblowing System)
Consistency of GCG Implementation
Significant Differences of GCG Practices
in Indonesia and NySE Standards
195
The Purpose of Good Corporate Governance
195
196
Implementation
Concept and Foundation
Framework and Roadmap of the
Strengthening of Gcg Implementation Practice
198
Road Map and Strengthening of
Corporate Governance
201
Rating and Assessment of
201
202
Corporate Governance
Corporate Governance Awards
The Structure and Mechanism of Good
Corporate Governance
General Meeting of Shareholders
202
209 Working Relationship Management Between
the Board of Commissioners and Board
of Directors
Board of Commissioners
Board of Directors
Committees Under the Board of Commissioners
Audit Committee
Nomination and Remuneration Committee
Planning and Risk Evaluation and Monitoring
Committee (KEMPR)
210
219
232
232
239
245
248
Corporate Secretary/Investor Relations (“IR”)
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
believe that the quality of the
GCG best-praCtiCe implementation
will be maintained and proven
We are establishing 2015 as the year of the culture to implement the basic principles of
Good Corporate Governance (GCG). By making GCG basic principles as the culture in
conducting daily operational tasks, we believe that the quality of the GCG best-practice
implementation will be maintained and proven. Thus, we can feel the benefit of the
GCG best-practice implementation, especially the increase of the company’s value and
fulfilment of the stakeholders’ hope.
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA the purpose of Good Corporate
GovernanCe implementation
Telkom implements the best practice of good corporate
ConCept and foundation
As an issuer (public company) that is enlisted in the
governance with some purposes, which include:
Indonesian Stock Exchange (Bursa Efek Indonesia/BEI)
• Maximizing
the
company’s
value
and
and the New york Stock Exchange (“NySE”), the Company
stakeholder ’s value.
not only must obey all applicable law and regulation in
• Encouraging professional, transparent, and efficient
Indonesia, the General Guideline of Indonesian Good
management of the company.
Corporate Governance published by KNKG and the
• Empowering
the
functions and
improving
the
Guideline of Public Company Governance of published by
independence of
the Shareholders, Board of
OJK, it must also obey the Sarbanes Oxley Act (“SOA”)
Commissioners, Board of Directors, Committees, and
of 2002 and other SEC regulations in implementing GCG.
Company Secretary.
• Paying attention to the responsibility that the company
There are at least two SOA regulations that are relevant
holds to its surrounding society and environment.
with Company affairs. First, SOA Section 404 that
• Increasing
the company’s contribution
to
states that the management is responsible for Internal
national economy.
Control Over Financial Reporting (“ICOFR”), to ensure
•
Increasing national investment climate.
the reliability of financial reporting and the preparation
Commitment
The commitment of the Company in implementing GCG
in publishing the financial report. Second, SOA Section
302 that requires the company to be responsible for the
formulation, maintenance, and effectiveness evaluation of
is shown by the release of Board of Directors’ Resolution
the procedure to ensure that information in the report is
on the GCG Group Guideline Number 602/2011. This
consistent with the US Stock Exchange Law.
Board of Directors’ Resolution has stated several
GCG implementations to ensure that GCG has been
The Company and the entire business group always
implemented with ethics, both for internal or external
attempt to improve the implementation of GCG so that it
transactions, and in accordance with the correct and
is consistent with the business demand and the advanced
proper practice of good corporate governance.
industrial changes. The strengthening of Telkom Group
GCG is built and developed to create an ethical (GCG
The abovementioned GCG
implementation system
as ethics) and dignified business practice, as well as
includes: business ethics, policy and procedure,
to show that the Company has been managed in an
risk management,
internal control and surveillance,
accountable, transparent, and responsible manner, so
leadership, tasks and responsibilities management,
that it could grow the sense of security and confidence
the empowerment of management and employees’
of the investors and potential investors to continue
competence, performance evaluation, as well as
supporting the company’s development.
appreciation and recognition.
The commitment to implement GCG principles in a
governance, we always try not only to be able to well-
planned, directed, and measured fashion
in every
manage risks, but also to make the Company able to
company’s operational level also covers the entire range
respond to every changes that happened and to make
of management, down to the executive level, so that there
use of that changes into something that can build the
is consistency in the GCG best practice implementation.
capacity and increase the value of the company in order
In
implementing the best-practice good corporate
to support the accomplishment of its goals and the long-
term sustainability of the Company.
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES frameworK and roadmap of the strenGtheninG of GCG implementation
praCtiCe
Telkom builds GCG framework and roadmap to ensure that GCG implementation is formulated based on mutual
understanding between the management and the entire elements of the company, and internalized based on 4 (four)
main pillars, which include:
• Business ethics application that comprises of the Company’s cultural values, which are being communicated to the
employees and of which the employees’ understanding is being surveyed every year.
• The management of effective policy and operational procedure that is consistent with the business demand, as the
guidance for the Company’s management and the guideline for the employees’ work.
• The implementation of comprehensive risk management based on COSO Enterprises Risk Management; and
Internal surveillance and the implementation of internal control based on COSO Internal Control, in particular internal
control over financial reporting.
To achieve that, Telkom has formulated GCG Telkom Framework to guarantee the sustainability of the company:
GCG telkom framework Chart
G overn m ent and regulator
m unication and Disclosure
Internal
Transaction
Co m
Investor
Vision &
Mission
Shareholders
BoC
BoD
Committee
Corporate Secretary
Business
Ethics
Policy &
Procedures
F
i
n
a
n
I
n
t
e
r
n
a
l
c
i
a
l
C
o
m
A
u
d
i
t
External
Transactions
a
n
d
m
u
n
i
t
y
E
v
a
l
u
a
t
i
o
n
Risk
Management
Internal Control &
Supervision
Effective
Leadership
Clarity of
Tasks and
Responsibilities
Management
Capability
and Employee
Competence
Effective
Performance
Evaluation
Reward and
Acknowledgement
Measurement and Accountability
Business Players and Business Commnity
Telkom continues to refine and improve the quality of
Telkom believes that GCG is not an obstacle, but in
GCG implementation, by implementing new initiatives to
the contrary, it is the pillar of sustainable performance
integrate the management of Good Corporate Governance
growth. The quality of our GCG implementation has
Risk and Compliance (GRC) comprehensively through
been well recognized by external assessor and investors’
the management of business performance, GCG, risk
perception. Therefore, we continue the efforts to improve
management, legal compliance, and social responsibility
GCG policy and supporting-system infrastructure through
that mutually support one another for the realization of
novel initiatives to strengthen the quality of good
the Company’s growth and business continuity.
corporate governance practice implementation that we
classified into Three Main Pillars, which consist of:
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
the strengthening of Good Corporate Governance structure
Building good corporate governance initiative to strengthen the effectiveness of communication and relationships
between the organs of the Company. This is done to avoid the potential agency problem and to achieve effective
chemistry among elements in the Company organization by paying attention to the check and balances. The
Strengthening of Good Corporate Governance Structure is characterized by the speed and accuracy of decision making
through: evaluation and the strengthening of BoD/BoC/Audit Charter; committee empowerment; the implementation
of “six eyes principles” to guarantee the accountability of business initiative; Notarial Deeds; etc.
the strengthening of Good Corporate Governance process
Building good corporate governance initiative to strengthen effective and efficient good corporate governance. It is
done by: implementing Enterprise Risk Management; implementing integrity pact in the scope of the business group;
strengthening IT governance; and remedying internal control to guarantee the reliability of financial reporting in the
strengthening of the leadership system; etc.
the strengthening of Culture
Embedding noble virtue through the implementation of Company culture and business ethics as a modality for practicing
a dignified business ethics and having employees with integrity and commendable moral through: the implementation
of segregation of duties (“SOD”) in the business process, the leadership role modelling, the conduct of business ethics
and practice that uphold prudential principle, the strengthening of the Company’s values, and others.
the organization sustainability Chart
Business
Performance
Corporate
Governance
risk
legal
Compliance
social
responsibility
BoD
Charter
BoD
Charter
Audit
Charter
Audit
Independent
Corporate Governance Structure
Executive
Committee
Six Eyes
Principles
Notary
Proxy
Audit Committee &
KEMPR
ERM
PMS
IT
Governance
Internal
Control &
CSA
Early
Warning
Note
Regularisasi &
Discrepancies
Report
Program
Anti Fraud
System
Whistle
blowing
Governance
Integrity
Pact
Job
Manual
Procedure
& Policy
Leadership
System
Competences
Development
Rewards &
Consequences
Legal &
Compliance
Governance Process
Organizational
Sustainability
SOD
Prudential
Communication
Role
Modelling
Business
Ethics
Core
Value
Culture
Organizational Beliefs
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES road map and strenGtheninG of Corporate GovernanCe
roadmap of the implementation and strengthening of GCG 2010-2016
PERIOD
2010
2011
2012
2013
2014
2015
ACTIVITy
The strengthening of good corporate governance organ through the notarial powers policy and
the strengthening of the Company’s Culture “The Telkom Way”.
The strengthening of the good corporate governance process through risk-management as an
inherent culture.
The strengthening of good corporate governance organ through the initiative to build Telkom
Group GCG by stipulating The Telkom Group GCG Guideline as regulated in Company policy
Number PD.602/2011.
The strengthening of good corporate governance process to ensure that the risk management
and conformity run effective in the Company.
The strengthening of good corporate governance organ through the empowerment of Telkom
Group GCG, the design of GCG implementation checklist and GCG self-assessment guidance
for subsidiary entity, and the appointment of the Board of Directors of subsidiary entity as
members of the executive board of Telkom Group and as Vice President of Telkom according
to their tasks and responsibilities as The Group Head of Telkom Group as regulated in the
Company’s Office Organization Policy Number PD.202/2012.
The strengthening of good corporate governance process to ensure that the business process is
inline with the business and organizational transformation.
The strengthening of good corporate governance organ through the development and
implementation of GCG that involve the business group through the formulation of Board
of Executive to frame the capacity of the company in executing strategic steps in portfolio
management that is supported by a parenting mechanism that is in accordance with the
demand of the business ecosystem.
Continue the strengthening of good corporate governance process to ensure that the business
process is in line with the business transformation and the “New Telkom” organizational
transformation in accordance with the Telkom Group Company Office Organization Policy
Number 202.11/2013.
The strengthening of good corporate governance organ through GCG to implement an
organizational characteristic that encompasses subsidiary entities through the implementation
of Board of Executive mechanisms and the improvement of its implementation.
The strengthening of good corporate governance process through a disciplined implementation
of ISO-based process of the new organization “New Telkom”.
The implementation of COSO 2013 Framework as the basis in implementing the Internal Control
and Integrated Audit.
The improvement of business ethics politic that involves Telkom Group.
The declaration of The year of Culture.
The strengthening of good corporate governance organ through the implementation of GCG
assessment of the subsidiary entity.
The strengthening of good corporate governance process to ensure the ISO certification/
surveillance.
2016
The implementation of “GCG Role Model”.
the implementation of basiC GCG
prinCiples
Within the 20-year timeline as a public company listed in
Annual Report and other material information, and provide
the Indonesian stock exchange, Telkom has implemented
the means for investors to access important information
all GCG basic principles, as explained below :
of the company with ease. The access of information that
transparency principle – Telkom and its Subsidiary are
managed with openness in conducting decision-making
process and providing real and relevant information
about the company.
we provide is in the form of: corporate websites, print
media and press releases, one on one meetings with
investors, public expose and press gathering.
accountability principle – Telkom and its subsidiary are
managed with a clarity on the function, the implementation,
We implement the Transparency Principle by providing
and the responsibility of the shareholders, the Board of
adequate, accurate, and punctual information to all
Commissioners, the Board of Directors, Committees, and
parties that have interest in the company. We publish
Secretaries of the company for an effective management
financial information, through the Financial Statements
of the company.
periodically and regularly.
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA We implement the Accountability Principle by ensuring
the availability of Board Manual and Charters needed by
each of the main organ of the company, to create check
and balances mechanism of the authorities and roles
the implementation of manaGement
prinCiples in aCCordanCe with the
GCG-oJK GuidanCe
As one public company that has registered its stocks
in managing the company. We equip the management
at the Indonesian Stock Exchange since 20 years ago,
structure with certain functions, such as: having an
Telkom has also implemented 8 company management
effective Independent Commissioner and Internal Audit.
principles in accordance with the Guidance of Public
Aside from that, we implement KPI criteria and a clear
Company Good Corporate Governance from OJK, as
operational target.
mentioned below.
responsibility principle – Telkom and its subsidiary
are managed by complying with the applicable rules
and regulations, and by implementing healthy corporate
principles.
principle 1 – increasing the performance value of
General meeting of shareholders (Gms)
Telkom recognizes that the shareholders, majority or
minority, have the rights to participate in the company’s
management through the decision-making
in GMS.
We implement the Responsibility Principle by ensuring
Therefore, in improving the value of the implementation
that Telkom always complies with all applicable rules
of GMS, we always adhere to all regulations that regulate
and regulations, including: law/regulation on taxation,
the procedures of GMS implementation, and ensure that:
healthy competition, industrial relations, workplace safety
and health, salary standardization, and other relevant
• Voting in the decision-making has been conducted by
considering the minority shareholders, in a close and
regulations. We even have VP of Legal and Compliance
independent manner.
function that structurally has the duty to ensure the
• The entire member of the Board of Directors and the
compliance of all these rules and regulations.
Board of Commissioners of Telkom always attend the
independence principles – Telkom and its subsidiary
are professionally managed without the clash of interests
and the influence of any party that is not in compliance
with the applicable regulations and the principles of
healthy corporation.
We implement the Independence Principle by firmly stating
the regulations/authorities of the corporate’s decision-
making in the Board charter and Articles of Association.
Aside from that, we implement several additional policies
in the Good Corporate Governance Guidance, such as:
Policy of Transaction with Clash of Interest, Prohibition
GMS.
• We always provide the summary of GMS on Telkom
website in the last year.
principle 2 –
Communication with
investors.
• Telkom always tries to
improving
the quality of
the shareholders or
improve the role and
participation of the shareholders or investors through
effective and continuous communication to know the
hopes and views of the shareholders or investor, and
to receive suggestions and inputs for the interests and
the good of the business. We conduct these efforts
of political Party Donation, Prohibition of Affiliation
through:
Relations, Prohibition of Gift and Donation Offering and
• The implementation of clear communication policy
Acceptance, Implementation of E-Procurement in the
with the shareholders of investors.
procurement process, and other similar policies.
• The explanation of policies, procedures, and means of
fairness principle (equality and equity) – Telkom
and its subsidiary are managed with fairness and equality
in fulfilling the rights of the stakeholders that arise from
the applicable agreement and applicable regulations.
We implement the Fairness Principle in every operational
aspect that includes: the respect to the rights of minority
shareholders, the prohibition of insider trading, the
implementation of Performance Management based on
Balanced Scorecard, gender aspects, the enforcement of
open-bidding in procurement, and the implementation
of e-procurement.
communication on the Company’s website.
principle 3 – strengthening the membership and
Composition of the board of Commissioners.
• Acknowledging the vast operational area that covers
the entire Archipelago with diverse challenges and risk
potentials, Telkom sought to have an ideal composition
of the Board of Commissioners and Directors that is
capable of addressing and mitigating these whole
risks into opportunities of company development. We
achieve this effort by:
• Assigning the number of Board of Commissioners
members by considering the business situation.
• Determining the composition of the Board of
Commissioners members by observing the diversity of
skills, knowledge and experience according to needs.
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES principle 4 –
the quality of
improving
implementation of the board of Commissioners’
tasks and responsibilities.
The Board of Commissioners of Telkom always performs
principle 7 – improving the Good Corporate
Governance aspect through the participation of
stakeholders
To ensure that the implementation of the Good Corporate
their tasks with good faith, full responsibility, and prudence
Governance has covered the entire important aspects
for the long-term interest of the Company. Therefore, in
and been able to stimulate cooperation with the entire
order that the surveillance and advisory tasks run well,
stakeholders, Telkom has ensured that:
Telkom ensures:
• The Company has a policy of early detection and
• To have resignation policy for the members of the
prevention of insider trading.
Board of Commissioners who have been indicated/
• The Company has a policy of anti-corruption and
involved in financial crimes.
anti-fraud.
• Through
the Committee of Nomination and
• The Company has and implements a policy of selection
Remuneration, Telkom has and
implement
the
and competition of the vendors.
succession policy of the Board of Directors members.
• It has and
implements a policy of violation
principle 5 – strengthening the membership and
Composition of the board of directors.
Telkom establish an ideal Board of Directors composition
•
•
reporting system.
It always fulfils the creditors’ rights.
It has and carries out a policy of long-term incentive
for its Board of Directors and employees.
that is able to perform the organization of the company
in an open, professional, effective, and efficient manner
to build the confidence of the stakeholders. For that
purpose, Telkom ensures that:
principle 8 – improving the implementation of
open information.
Telkom implements open information policy that is
• The decision on the number of the Board of Directors
conducted with the support of updated information
members has considered the business situation and
technology to guarantee the accuracy and punctuality.
the effectiveness of the decision-making.
To ensure that the whole important information of the
• The decision on the composition of the Board of
company is known by its stakeholders, Telkom implements:
Directors members has been conducted by observing
• Wide use of information technology.
the diversity of skills, knowledge, and experience
• A disclosure policy for the full benefit of the
according to needs.
shareholders with over 5% of percentage or the group
• The decision related to the Board of Directors
of leading shareholders.
members, who are in charge of the accounting or
financing, is made by considering their skills and/or
knowledge in accounting.
the quality of
improving
principle 6 –
implementation of the tasks and responsibilities
of the board of directors.
In order that the Board of Directors can do their tasks
Good Corporate GovernanCe publiC
awareness CampaiGn
To ensure the understanding of the entire corps, the
Company always conducts public awareness campaign of
the good corporate governance that is attached to the
entire cohort. Some activities to actualize it include:
a. the
implementation of e-learning and
well, efficiently, and effectively, and in compliance with
the regulations, solely for the interests of the Company,
assessment
of business ethics that is conducted online and
Telkom is implementing a policy of distribution of tasks
participated by all Telkom Group staffs, with subject
and authorities among the Board of Directors. Aside from
matters that include GCG, Business Ethics, Culture,
that, to ensure the quality of the company management,
SOA, Fraud Management, and Gratification Control.
Telkom ensures that:
b. spiritual Capital management
• The Board of Directors of Telkom has and conducts
As an effort to improve a clean culture, honesty spirit
a self-assessment policy to evaluate and improve
in working, and transparency in the company, Telkom
their performance.
management has
implemented Spiritual Capital
• Self-assessment policy and its parameter is revealed in
Management (SCM) to all employees and officials of
Annual Reporting.
Telkom Group, hence every working activity is based
•
It has the policy and mechanism of resignation for the
on the “ihsan” principle as a manifestation of the belief
members of the Board of Directors who have been
“working as part of worship”.
indicated/involved in financial crimes.
200
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA c. Gratification Control
IICD in collaboration with the Indonesian Financial
To show Telkom’s seriousness to its commitment
Services Authority OJK, is conducting assessment of the
towards gratification control, all Board of Directors are
implementation of CG of public company (issuer). The
singing an Integrity Pact as a form of good corporate
assessment is conducted to 100 issuers with the most
governance. This signing is a proof of Telkom’s
capital as registered in the Indonesian Stock Exchange
seriousness to its commitment towards gratification
for the financial year 2014. The result is that as much as
control. The company and its employees must report
50 issuers are considered as having the highest CG score
any gratification with a tendency of bribery at the
according to the ASEAN CG Scorecard methodology.
latest 30 days since accepting the gratification.
d. internal Control
Out of these 50 issuers considered as having the highest
CG score, OJK and IICD then choose 24 winning issuers
The
implementation of
Internal Control, as the
from 10 categories. Telkom received an award in the
prerequisite of SOX compliance, has strict requirements
category of “The Best State Owned Enterprise”.
to guarantee and support the good corporate
governance. The purpose of SOX is certainly in tune
Corporate GovernanCe awards
with the implementation of GCG and ethics, which is:
1. Improving the effectiveness and efficiency of the
Various efforts to improve the quality of implementation
company’s management.
2. Improving
the quality of
the company’s
financial reporting.
are conducted, which make Telkom received a number
of awards in the field of Good Corporate Governance in
2015 that is showing that the implementation of good
3. Ensuring the obedience to the law and or other
corporate governance has been leading up to Good
regulations that must be fulfilled by the company.
Corporate Governance Excellence.
4. Developing investors’ confidence level and in
the long term can guarantee the sustainability
The Awards received include:
of the company.
ratinG and assessment of Corporate
GovernanCe
• Best Listed Companies Award - Top Performing Listing
Companies 2015 from Investor Magazine.
• Forbes Global 2000 Companies – Rank 783 from
Forbes Magazine.
• Indonesia Good Corporate Governance Award
To receive feedback for the improvement of GCG best
– Very Good Predicate
for Companies
in
practice implementation performance, Telkom examines
Infrastructure, Utilities, and Transportation Sector
the results of periodic reviews conducted by a competent
from Economic Review.
independent external assessor. During the reporting
• Annual Report Award - 3rd winner of Non-Financial
period, assessment is conducted by IICD (The Indonesian
State-Owned Enterprise Listed by OJK, BEI and KNKG.
Institutes for Corporate Directorship), in collaboration
•
IICD Award - The Best State-Owned Enterprise from
with the Indonesian Financial Services Authority OJK.
Indonesian Institute for Corporate Directorship.
assessment by iiCd
IICD is a non-profit organization that was established
by 10 reputable universities and business school and
is a reputable provider of advocacy, training and
research service in the field of corporate governance
(CG) in Indonesia.
•
Indonesian Sustainability Reporting Award 2015 from
National Center for Sustainability Reporting (NCSR).
201
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES the struCture and meChanism of Good Corporate GovernanCe
The structure and mechanism of Good Corporate Governance in Telkom environment is shown in this chart.
Main Organ
General Meeting of
Shareholders
BOARD OF
DIRECTORS
BOARD OF
COMMISSIONERS
Corporate Secretary
Internal
Auditor
Risk & Process
Management Unit
Support
Audit
Committee
Nomination &
Remuneration
Committee
Planning, Evaluation
and Risk Monitoring
Committee
Telkom’s management is conducted according to the
two-tier board structure mechanism. As shown in the
telKom’s shareholders
We classify Telkom’s shareholders in 2 (two) types,
chart, the highest institution in the company is the
one share of Dwiwarna A Series (as the controlling
General Meeting of Shareholders (GMS) forum, while
shareholder) and 100,799,996,400 shares of B Series.
the company’s management is the responsibility of the
To get more details of our shareholders composition
Board of Commissioners and Directors. The Board of
diagram, see Telkom Indonesia General Information –
Commissioners has the task and responsibility to conduct
Stock Information – Shareholders Composition.
surveillance on daily operational activities that become
the responsibility of the Board of Directors.
General meetinG of shareholders
the riGhts & responsibilities of
the shareholders in the General
meetinG of shareholders
In AGMS and EGMS, shareholders have the right to receive
The General Meeting of Shareholders(“GMS”), either
equal treatment and position, especially in voicing their
Annual GMS (“AGMS”) or Extraordinary GMS (“EGMS”), is
opinion and contributing to the important and strategic
the highest institution in the good corporate governance,
decision-making process related to:
and also the main forum for the shareholders to use their
1. The appointment and dismissal of the Board of
rights and authorities in the company’s management.
Commissioners and Board of Directors of Telkom,
EGMS can be held based on needs. In implementing its
the Board of Commissioners and Board of Directors
authority, GMS must pay attention to the interest of the
of Telkom,
Company’s development and wellbeing, the interests of
3. The assessment of the Company’s performance in the
the stakeholders and the rights of the Company.
reporting year,
2. The decision of the remuneration and allowance for
4. The decision and agreement to the use of the
Company’s profits including the amount of dividend,
202
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA 5. The amendment of the Articles of Association, and
of May 14, 2008 on the Company’s Articles of Association
6. All corporate action that need the decision of the
Principles that exercise public offering on equity-stock
GMS as stipulated in the Articles of Association of
and Public Company.
the Company.
Annual GMS also has the authority to authorize Financial
AGMS and EGMS has been arranged in such a way that
Report and Company’s Annual Report.
the shareholders can use their vote directly or through
The mechanism of use of votes by the shareholders in
their representative.
The Government of the Republic of Indonesia as the
controlling shareholder with its ownership of Dwiwarna A
Annual GMS is held at the latest six months after the
series shares must take notice of its responsibilities while
end of financial year. In the Annual GMS, Board of
using its rights to influence the decision of the company’s
Commissioners and members of Board of Directors
management, either when using its voting right or in
presenting the following:
other matters. The Government has special rights that
1. Annual Reporting Book.
can be used to give approval of merger plan, acquisition,
2. Recommendation on the use of net profit so long as
divestment, or liquidation through AGMS and EGMS.
the Company is recording net profit.
3. Recommendation on Public Accounting Firm (KAP) to
General rules and proCedures for
holdinG aGms
General rule for holding a GMS refers to the regulation
perform audit on Company financial reporting for the
current financial year, based on suggestion from the
Board of Commissioners or by delegating the authority
of the Indonesian Financial Services Authority (OJK)
to appoint KAP to the Board of Commissioners.
Number 321 POJK.04/2014 on Planning and Holding a
4. Other matters that require approval
from the
General Meeting of Shareholders of Public Company,
shareholders in the General Meeting of Shareholders
regulation of Capital Market and Financial Institutions
for the interest of the Company with no prejudice
Supervisory Board (BAPEPAM-LK) Number IX.J.1, annex
against the Articles of Association.
Decision of the Head of Capital Market and Financial
Institutions Supervisory Board Number KEP-179/BU2008
Generally, the stages of convening a GMS are as follows:
activities
Letter of notification to Indonesian Financial Services Authority
Notification Announcement of GMS
Deadline to submit proposal of GMS agenda by 5% shareholders
Delivery of meeting’s materials and proxy to BNy Mellon
Recording Date of those who have the right to attend GMS
Invitation Announcement of GMS
GMS
Notification Announcement of the results of GMS
time
H-44
H-37
H-29
H-24
H-23
H-22
H
H + 2
Company must make an announcement/notification on the plan to hold GMS within 14 days prior to circulating the
invitation/calling.
Company invite/call shareholders by registered mail or by putting an advert in printed media that is published at least
21 days prior to the convening of GMS, outside of the invitation date and the meeting date.
Company must guarantee the coherence of information with the plan or implementation of GMS, and with the OJK
regulation Number 32/POJK.04/2014, in which the Company must give details of such plan to OJK at least seven days
prior to circulating invitation.
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES After the convening of GMS, Company must report the
The agenda of the AGMS was:
results of GMS to OJK at least in two working days and
1. Approval on Annual Company Report for the 2014
announce that results on at least one nationally-circulated
Financial year, including the Report of Supervisory
daily newspaper in Bahasa Indonesia.
Task of the Board of Commissioners.
2. Adoption of Company Financial Report and Annual
All shares released have one vote unless otherwise stated
Report of Partnership Program and Environmental
by the Company’s Articles of Association.
Development for the 2014 Financial year, and the
Gms implementation
In 2015, Telkom convened 1 (one) Annual GMS on April
Release from Responsibilities for the Board of Directors
and Board of Commissioners.
3. Decision on the Use of Company’s Net Profit for the
17, 2015. The convening procedures of that AGMS are in
2014 Financial year.
accordance with Article 14 paragraph 1 of the Company’s
4. Decision on Remuneration for the members of the
Articles of Association, which is:
Board of Directors and the Board of Commissioners
• Notification (Announcement) of the Meeting was
for the 2015 Financial year.
published on March 11, 2015 on The Jakarta Post, Bisnis
5. Appointment of Public Accounting Firm to audit
Indonesia, and Investor Daily.
Company Financial Report for the 2015 Financial year,
• The invitation of the meeting was done on March 26,
including the Audit of Internal Control over Financial
2015 on the same daily.
• The agenda of the meeting was also informed on those
notification and invitation advertisements and on the
registered mail that was sent.
Report and the Appointment of Public Accounting
Firm that will audit the Financial Report of Partnership
Program and Environmental Development for the 2015
Financial year.
• The rules of attendance and procedures of decision
6. Amendment to the Articles of Association of
making was also informed on those notification and
the Company.
invitation advertisements and on the registered mail
that was sent.
7. Transfer of authority to the Board of Commissioners
on the Use/Transfer of Treasury Stock as a result of the
• The meeting was participated by all Company’s Board
Buyback III and IV Share.
of Directors and 6 (six) out of 7 (seven) members of
8. Modification to the Company’s Management Structure.
the Board of Commissioners, in which Mr. Hadiyanto
(Commissioner) was absent, and that the shareholder
The results of the AGMS, the Results of Voting (from the
of Dwiwarna A series shares and the shareholders of
attendance’s list) and the Follow Up to the Resolution of
B series in total representing 80,889,851,641 shares or
AGMS are as follows:
82.39% of the total of shares with voting right that
have been released by the Company until the day
of the Meeting with the amount of 98,175,853,600
shares (these do not include the shares that have
been repurchased).
• The Annual GMS was also attended by Public
Accounting Firm (KAP), Notary, Legal Councel and
other invitations by the Board of Directors.
• That the Resolution of Annual GMS for the 2014
Financial year has been submitted to OJK and other
Capital Market Institutions and published on April 19,
2015 on Bisnis Indonesia and Investor Daily in Bahasa
Indonesia and on Jakarta Post in English, and has also
been published on Telkom’s website (www.telkom.
co.id) in two languages.
204
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA agenda
1
resolution of aGms
dated april 17, 2015
• Approving the Company’s Annual Report, in which
voting result
follow up
yes:
its points have been conveyed in the Meeting of the
80,652,633,968 shares
Board of Directors on the situation and the course of
(99.71 %)
the Company for the 2014 Financial year, including
the Report of the Implementation of the Company’s
No:
Board of Commissioners Supervisory Tasks for the
13,050,100 shares
Directly Applicable
2014 Financial year.
(0.016 %)
Abstain:
224,167,573 shares
(0.277%)
2
• Ratifying Company’s Consolidated Financial Report
yes:
Decision Directly
for the 2014 Financial year that has been audited by
80,628,943,861
Applicable
Purwantono, Suherman & Surja Public Accounting
shares
Firm (a member firm of Ernst and young Global
Limited) according to its report Number RPC- 6824/
(99.68 %)
PSS/2015 of February 27, 2015 with the opinion “the
No:
consolidated financial report presents normality, in all
13,136,900 shares
material items, according to the Standard of Financial
(0.016 %)
Accounting in Indonesia;
• Ratifying the Financial Report of Partnership and
Abstain:
247,770,880 shares
(0.306%)
Environmental Development Program for the 2014
Financial year, that has been audited by Purwantono,
Suherman & Surja PAF (a member firm of Ernst and
young Global Limited) according to its report Number
RPC-6644/PSS/2015 of February 11, 2015 with the
opinion “the Financial Report presents normality,
in all material items, according to the Standard of
Accounting Entity without Public Accountability “;
• Giving
full
release and discharge
from any
responsibilities (volledig acquit et de charge) to all
members of the Board of Directors who served in 2014
on the action of managing the Company and to all
members of the Board of Commissioners who served
in 2014 on the action of supervisory of the Company
and supervisory of Partnership and Environmental
Development Program that have been conducted
in the 2014 Financial year, so long as the action is
reflected in the Annual Report and Financial Report
of the Company for the 2014 Financial year and the
Annual Report of Partnership and Environmental
Development Program for the 2014 Financial year,
and is not against the laws and regulations.
205
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES agenda
3
resolution of aGms
dated april 17, 2015
• Approving the decision to use the Company net
voting result
follow up
yes:
Dividend shares are
profit for the 2014 financial year with the total of
80,388,375,840 shares
given on May 21, 2015
Rp14,638,101,099,000,-, as follows:
(99.38 %)
• Dividend with
the
amount of 50% or
Rp7,319,009,885,880, worth Rp74.55 per share.
No:
• Special dividend with the amount of 10% of net
334,101,328
profit or in total of Rp1,463,801,977,176,- or worth
shares
Rp14.91 per share.
(0.413 %)
• The
rest with
the amount of 40% or
Rp5,855,289,235,944,- is allocated as a reserve that
Abstain:
will be used to develop business.
167,374,473 shares
• Giving power to the Board of Directors to further
(0.207%)
arrange the procedures of dividend sharing.
Decision on reserve
is directly applicable.
4
• Transferring the authority and power to the Board
yes:
Has been followed
of Commissioners after receiving approval from
the holders of Dwiwarna A series shares to decide
78,601,267,366
shares
up
amount of tantiem given to the members of the
(99.17 %)
Board of Directors and the Board of Commissioners
for the 2014 financial year, and salary, honorarium,
No:
allowance, facilities, and other income for the Board
1,982,610,895 shares
of Directors and the Board of Commissioners for the
(2.451 %)
2015 financial year.
Abstain:
305,973,380 shares
(0.378%)
yes:
77,775,703,194 shares
(96.15 %)
No:
2,827,121,823 shares
(3.495 %)
Abstain:
PAF’s approval is
directly applicable.
Has been
implemented
Has been
implemented
287,026,624 shares
Has been
(0.355%)
implemented
• Approving the appointment of Purwantono, Suherman
& Surja PAF (a member firm of Ernst & young Global
Limited) that will do the Integrated Audit for the
2015 Financial year that covers the audit of Company
consolidated Financial Report and the Audit of
Internal Control Over Financial Report for the 2015
Financial year and will examine the Financial Report
of Partnership and Environmental Development
Program for the 2015 Financial year.
• Re-appointing Purwantono, Suherman & Surja Public
Accounting Firm (a member firm of Ernst & young
Global Limited) to audit the use of Partnership and
Environmental Development Program Budget for the
2015 Financial year.
• Delegating
the authority
to
the Board of
Commissioners to:
• Decide the addition of KAP’s scope of work
according to the needs.
• Decide the amount of payment of the audit service
and other normal requirements.
• Delegating authority to the Board of Commissioners
to appoint Substitute Public Accounting Firm
and decide the condition and requirements of the
appointment, if the appointed Public Accounting
Firm is unable to perform or continue its task for any
reason, including the failure to reach consensus on
the amount of payment of the audit service.
5
206
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA agenda
6
resolution of aGms
dated april 17, 2015
• Approving the amendments to some rules in the
voting result
follow up
yes:
Decision is directly
Articles of Association of the Company in order to
78,402,944,954 shares
applicable
adjust with:
(96.93 %)
• Regulations of the Indonesian Financial Services
Authority Number: 32/POJK.04/2014
No:
• Regulations of the Indonesian Financial Services
2,099,371,470 shares
Authority Number: 33/POJK.04/2014
(2.595 %)
• Regulation of the Minister of State Owned
Enterprises Number PER-02/MBUl02/2015
Abstain:
• Regulation of the Minister of State Owned
387,535,217 shares
Enterprises Number PER-03/MBU/02/2015 on
(0.479%)
the requirements, procedures of assignment, and
dismissal of the members of Directors of the State
Owned Enterprises
• Circular letter of the Minister of State Owned
Enterprises Number 3/MBU/2010
• Additional main and supporting business activities
of the Company
• Additional special right of Dwiwarna A Series
Shareholders. Honorable dismissal since
the
conclusion of the Meeting:
Has been applied
• Amendment to the regulation on the limitation of
the authority of the Board of Directors related to
the action of the Board of Directors that requires
the approval of the Board of Commissioners
• Approving the delegation of power to the Board
of Directors of Company with a substitute right to
re-announce the decision of the Meeting related to
the amendment of the Articles of Association of
that Company.
7
• Approving the delegation of authority and power to
yes:
Has been applied
the Board of Commissioners after receiving approval
from Dwiwarna A Series Shareholders on the use/
diversion of Treasury Stock as a result of share
80,463,150,168 shares
(99.47 %)
buyback III dan IV.
No:
46,415,200 shares
(0.057 %)
Abstain:
380,286,273 shares
(0.470%)
207
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES agenda
8
resolution of aGms
dated april 17, 2015
• Honorably dismiss from their office:
voting result
follow up
yes:
Has been
• Mr. JOHNNy SWANDI SJAM as an Independent
55,717,503,768 shares
implemented
Commissioner
(68.88 %)
• Mr. IMAM APRIyANTO PUTRO as a Commissioner
• Mr. VIRANO G NASUTION as an Independent
No:
Commissioner
23,283,682,400 shares
In effect since the conclusion of the Meeting.
(28.78 %)
• Appointing these names:
Abstain:
• Mr. RINALDI FIRMANSyAH as an Independent
1,888,665,473 saham
Commissioner;
(2.335%)
• Mrs. PAMIyATI PAMELA JOHANNA WALUyO as an
Independent Commissioner
• Mr. MARGIyONO DARSASUMARJA as a
Commissioner;
with the term of office starts at the conclusion of the
Meeting and ends at the conclusion of the Company’s
fifth Annual GMS without diminishing the right of GMS
to dismiss at any time.
• If the appointed members of the Board of
Commissioners are still in office for other position,
while it is prohibited by relevant regulations, then
the respective Commissioners must resign from their
position.
• With the dismissal and appointment, then
the structure of the members of the Board of
Commissioners are as follows:
President
Commissione
: Mrs. HENDRI SAPARINI
Commissioner
: Mr. HADIyANTO
Commissioner
: Mr. DOLFIE OTHNIEL
Commissioner
Independent
Commissioner
Independent
Commissioner
Independent
Commissioner
FREDRIC PALIT
: Mr. MARGIyONO
DARSASUMARJA
: Mr. PARIKESIT SUPRAPTO
: Mr. RINALDI FIRMANSyAH
: Mrs. PAMIyATI PAMELA
JOHANNA WALUyO
Note: Abstain votes are considered as being an approval All of the above AGMS resolutions are in line with the assigned agenda and
stated in the invitation for AGMS.
208
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA worKinG relationship
manaGement between the board
of Commissioners and board of
direCtors
Telkom has a set of rules that form the basis of
essence, a joint meeting is held to seek common views and
working relationship governance between the Board of
a harmony of action between the Board of Commisioners
Commissioners and the Board of Directors. The rules are
as the organ in charge of monitoring and counseling, with
outlined in the Board of Commissioners’ Resolution No.
the Board of Directors as the executor of the Company’s
09/KEP/DK/2015 on Standard Operating Procedures
daily operations.
(SOP) pertaining to the Board of Commisioners and
Board of Directors Approval Process and Resolution No.
A Joint Meeting may generate strategic decisions
02/KEP/DK/2013 regarding Certain Board of Directors
regarding a corporate action plan, where the plan is
Actions that Require the Written Approval of the Board of
beyond the authority of the Board of Directors. Joint
Commissioners, as well as Resolution No.04/KEP/DK/2014
Meeting Forums can also be a place for the Board of
regarding the Amendment to Board of Commissioners’
Commissioners to provide insights and strategic direction
Resolution No.02/KEP/DK/2013 regarding Certain Board
for the development of the Company.
of Directors Actions that Require the Written Approval of
the Board of Commissioners.
distribution of authority
and arranGements reGardinG
the approval of the board of
Commissioners
The main
idea of the Board of Commissioners’
Resolutions above is the delegation of authority to the
During 2015, Telkom has convened 14 Joint Meetings of
the Board of Commissioners and the Board of Directors
with the following recapitulation of presence.
resolution of the Joint meetinG of
the board of Commissioners & board
of direCtors
Various strategic binding decisions resulting from the
Board of Directors on certain aspects in accordance with
Joint Meeting of the Board of Commissioners and the
the Articles of Association and the relevant provisions
Board of Directors for 2015, includes:
of the Board of Commissioners Resolution in question,
1. Sign off Integrated Audit year Book 2014
to carry out corporate actions specified in accordance
2. Discussion and Ratification of Company’s Long-Term
with the duties, powers and responsibilities of the Board
Plan (Rencana Jangka Panjang Perusahaan/“RJPP”)
of Directors as the executor of the Company’s daily
2016-2020
operational activities.
3. Implementation of Telkom Group CFU & FU
4. Ratification of Corporate Business Plan and Budget
However, if the value and impact of the corporate actions
(Rencana Kerja Anggaran Perusahaan/“RKAP”) 2016
conducted by the Board of Directors in fact goes beyond
5. Evaluation of Companies Performance
the provisions contained in the Board of Commissioners’
Resolution, the Board of Directors must first submit a
proposal to the Board of Commissioners and obtain
written approval from the Board of Commissioners within
a specific period of time.
When, in the process of requesting the aforementioned
meChanism reGardinG the
relations between the board of
Commissioners, board of direCtors
and maJority and/or ControllinG
shareholders
To maintain independence, to avoid conflict of interest
approval, more detailed explanations is required from
and to ensure accountability in decision-making and
the Board of Directors, the Board of Commissioners
operational implementation, Telkom has a rule prohibiting
may invite and organize a Joint Meeting of the Board of
any affiliate relationships and family relationships directly
Commissioners and the Board of Directors.
or indirectly between the members of the Board of
Joint meetinGs & the attendanCe of
Joint meetinGs
A Joint Meeting of the Board of Commissioners and the
Commissioners, Board of Directors and Majority and/or
Controlling Shareholders.
The following is an explanation regarding the mechanism
Board of Directors may take place at the initiative of
of affiliation between the members of the Board of
the Board of Commissioners and Board of Directors. In
Directors, Board of Commissioners, and the Majority
and/or Controlling Shareholders, as elaborated in the
table below:
209
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES financial relationship with
family relationship with
name
boC
bod
Controlling
shareholder
boC
bod
Controlling
shareholder
yes
no
yes
no
yes
no
yes no
yes
no
yes
no
Board of Commissioners
(BOC)
Hendri Saparini
Hadiyanto
Dolfie Othniel Fredric Palit
Margiyono Darsasumarja
Parikesit Suprapto
Rinaldi Firmansyah
P. Pamela Johanna Waluyo
Direksi (BOD)
Alex J. Sinaga
Heri Sunaryadi
Indra Utoyo
Dian Rachmawan
Muhammad Awaluddin
Abdus Somad Arief
Herdy Rosadi Harman
Honesti Basyir
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board of Commissioners
General eXplanation
Law No. 40 of 2007 regarding Limited Liability
the board of Commissioners Charter
Telkom has a Board of Commissioners Charter adopted
in accordance with Board of Commissioners Resolution
No.16/KEP/DK/2013 dated December 17, 2013. The
Companies (“Company Law”) stresses that all Companies
Charter is a point of reference for the Board of
incorporated under Indonesian laws must have a Board of
Commissioners in carrying out its duties so as to be in
Commissioners whose task is to supervise management
line with Good Corporate Governance practices for Board
policies, the implementation of management, both of the
of Commissioner. The Board of Commissioners Board
Company as well as the Company’s businesses that are
Manual contains the elaboration of tasks, powers, duties,
conducted by the Board of Directors, as well as to provide
responsibilities, division of tasks, meetings, conflict
advice to the Board of Directors. This is done solely for
of interest provisions, ownership, and the relationship
the benefit of the Company and in accordance with the
between the Board of Commissioners, Board of Directors
aims and objectives of the Company.
and the Annual Meeting of Shareholders.
Meanwhile, the tenure of the members of the Board
In carrying out its duties and functions, in addition to
of Commissioners shall be 5 (five) years and may be
referring to the Board of Commissioners Charter, the
reappointed for one (1) term of office in accordance
Board of Commissioner are also always guided by the
with Article 28 paragraph (3) of Law Number 19 of 2003
Articles of Association and the Joint Resolution between
regarding State-Owned Enterprises.
the Board of Commissioners and the Board of Directors.
Each member of the Telkom’s Board of Commissioners
is forbidden to hold another position as a member of the
Board of Directors at another State-owned Enterprise,
local government-owned enterprises, private enterprises,
and other positions that may give rise to a conflict of
interest; and/or other positions in accordance with the
provisions of the prevailing laws and regulations.
the Criteria, Condition and
seleCtion of the board of
Commissioners
The criteria, general provisions and procedures for election
of the Board of Commissioner as set forth in the Charter of
the Board of Directors are as follows:
1. The Board of Commissioners is an assembly and each
member of the Board of Commissioners cannot act alone
without the decision of the Board of Commissioners.
210
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA 2. Those who can be appointed as Members of the Board
is no decision on the resignation from the GMS, the
of Directors are required to have Indonesian citizenship
concerned member of the Board of Commissioners is
and are legally competent, unless within 5 (five) years
effectively resigning 60 (sixty) days after the date of
prior to the appointment, he or she: (a) is declared
receipt of the resignation letter.
bankrupt, (b) is a member of the board of directors or
10. The term of office of a member of the Board of
a member of the Board of Commissioners, or a member
Commissioners ends if: (a) his/her term of office
of the supervisory board who were responsible for
expires, (b) he/she is resigned in accordance with the
causing company or public company bankruptcy, and
provisions of the Articles of Association, (c) he/she no
(c) is convicted of a criminal offense that harm the state
longer meets the legislation requirements, (d) he/she
finances and/or state-owned enterprises and/or relevant
dies, and (e) he/she is dismissed by the GMS.
financial sector.
3. The appointed members of the Board of Commissioners
are Indonesian citizens who meet the requirements
the selection of the board of Commissioners
The selection of the members of the Board of
in accordance with the legislation. There should be no
Commissioners is conducted through various stages, with
family relationship, either by blood to the third degree,
the most decisive one is the fit and proper test, conducted
vertically or horizontally, or by marriage, between
under the provisions of the Minister’s Regulation No.
members of the Board of Commissioners themselves
PER-02/MBU/2015 on Conditions and Procedures for the
and between members of the Board of Commissioners
Appointment and Dismissal of the Members of the Board
and members of the Board of Directors.
4. The term of office of members of the Board of Directors
is 5 (five) years from the date set by the General Meeting
of Shareholders who appoints the members until the
closing of the fifth AGMS after the appointment.
5. The provisions on the term of office of members of
the Board of Commissioners does not diminish the
of Commissioners and the Board of Trustees of the State-
Owned Enterprises.
the diversity of the Composition of
the board of Commissioners
The number and composition of the members of the Board
of Commissioners are set by the GMS, adjusted according
right of the GMS to dismiss member(s) of the Board of
to the Articles of Association, and made by considering
Commissioners at any time before the term ends.
the vision, mission, and strategic development plan of
6. The termination of appointment can be done if the
member of the Board of Commissioners, among others:
Telkom in order to implement effective monitoring as
well as fast, accurate and independent decision making.
(a) can not carry out his/her duties properly, (b) does
Given that Telkom’s business field is one of the strategic
not implement the provisions of the legislation or the
sectors in supporting economic growth with operational
Articles of Association, or (c) is engaged in actions
activities covering the Indonesian territory, the personnel
detrimental to the Company or the State.
composition of the Board of Commissioners is formed
7. After the term expires, members of the Board of
Commissioners may be reappointed for only one term
of office by the GMS.
8. Members of the Board of Commissioners may not
hold another position: (a) as members of the Board of
by continually considering the diverse competence
background that is also complementary, in order to
establish a single body with coherent and integrated
competence in carrying out supervisory duties.
Directors of state owned enterprises, regional owned
In accordance with the resolution of the GMS dated April
enterprises, and/or private enterprises, (b) as officials,
17, 2015, the composition of the Board of Commissioners
in accordance with the legislation, of political parties
is changed due to the honorable dismissal of Mr. Johnny
and/or candidates/members of the legislature and/or
Swandi Sjam and Mr. Virano G. Nasution as Independent
candidates for the head/deputy head of a district, and/
Commissioners as well as Mr. Imam Apriyanto Putro as
or (c) as any other positions that may pose a conflict
Commissioner. Those three members of the Commissioners
of interest.
was then replaced by Mr. Rinaldi Firmansyah and Mrs.
9. A member of the Board of Commissioners has a
right to resign from his/her post by giving a written
Pamela Johanna Pamiyati Waluyo as
Independent
Commissioners as well as Mr. Margiyono Darsasumarja as
notification about the resignation to the Company
Commissioner. Those three Commissioners who resigned
with a copy to the shareholders of Dwiwarna A Series,
and those who replaced them have sufficient competence
Board of Commissioners and other members of the
and experience background that are needed to carry
Board of Directors no later than 60 (sixty) days prior
to the date of resignation. If the resignation does not
out the tasks of monitoring and advising the Board of
Directors in implementing their operational activities.
specify the effective date of the resignation and there
211
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES The total number of members of the Board of
Firmansyah and Mrs. Pamiyati Pamela Johanna Waluyo
Commissioners of Telkom after the GMS dated April 17,
as
Independent Commissioners and Mr. Margiyono
2015 is 7 people with two of them are female. Telkom does
Darsasumarja as Commissioner since the end of the
not have specific rules regarding gender diversity in the
Annual meeting until the end of the fifth Annual General
composition of the Board of Commissioners. The General
Meeting of Shareholders which will be held in 2020,
Meeting of Shareholders and the Shareholders of Dwi
without prejudice to the right of the General Meeting of
Warna A Series have the right of setting the composition.
Shareholders to make a change at any time as needed.
Nevertheless, Telkom is certain that the diversity of the
composition of the Board of Commissioners, which is
The dismissal and appointment of members of the
formed by the General Meeting of Shareholders and are
Board of Commissioners is done due to several reasons,
currently filled by personnel with background expertise
namely the end of the term office of a member of the
in the field of economics,
information technology,
Commissioners and the need for a member to carry
finance, law, governance and human resources, has met
out his/her new responsibility. In addition, the changes
the Company’s requirements such as the diversity of
are made as a reaction from the Company and the
academic background, expertise and experience.
shareholders
towards
the
increasingly challenging
the personnel Composition and the term of
office of the board of Commissioners
As mentioned in the directive of the AGMS held on April
17, 2014, the shareholders have honorably dismissed
business in the future. Therefore, it is deemed necessary
to strengthen the supervisory and advisory function
of the new personnel of the Board of Commissioners
who has a more suitable expertise background
with the Telkom business environment in the future.
Mr. Johnny Swandi Sjam and Mr. Virano G. Nasution
Thus the composition of personnel of the Board of
as Independent Commissioners as well as Mr. Imam
Commissioners of Telkom since the closing of the AGMS
Apriyanto Putro as Commissioner. The Annual General
held at April 17, 2015 are as follows:
Meeting of Shareholders then appointed Mr. Rinaldi
Name of the
Board of Commisioners
Hendri Saparini
Hadiyanto
Dolfie Othniel Fredric Palit
Margiyono Darsasumarja
Parikesit Suprapto
Rinaldi Firmansyah
Title
President Commissioner
Commissioner
Commissioner
Commissioner
Independent Commissioner
Independent Commissioner
P. Pamela Johanna Waluyo
Komisaris Independen
The starting year for
the term of office
2014
2014
2014
2015
2014
2015
2015
independenCe of the board of
Commissioners
Rules and restrictions in accordance to the regulations
The minimum number of personnel of Independent
underline that the
Independent Commissioner
is a
Commissioner assigned by the OJK and the IDX is 30% of the
member of the Board of Commissioners who does not
total number of members of the Board of Commissioners.
have the financial, management, share ownership, and/or
The number of Independent Commissioner at the end of
family relations with the other members of the Board of
2015 is 3 (three) people, or 43% of the total number of
Commissioners. In addition, the Independent Commissioner
members of the Board of Commissioners, which means
does not have a relationship with the Board of Directors
that it meets the required quantity.
and/or the Controlling Shareholder or a relationship that
may affect his/her ability to act independently and have
met the requirements as an Independent Commissioner.
the independence of independent Commissioners
Independent
There are 3 (three) members of the
Commissioner of Telkom according to the resolution of
The Independent Commissioner is tasked to create an
the AGMS dated April 17, 2015, namely: Parikesit Suprapto,
objective environment and to uphold fairness among
Rinaldi Firmansyah and Pamiyati Pamela Johanna Waluyo.
various interests, including the interest of the company
These three members of the Independent Commissioner
and the interests of stakeholders, as a key principle in the
have met all the terms and conditions of independence as
decision-making of the Board of Commissioners.
defined in the rules of the OJK and IDX.
212
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA multiple positions of the board of Commissioners
Several members of the Board of Commissioners of Telkom have other positions at some other institutions. However,
these practices do not contradict the terms of the Prohibition of Multiple Positions as set out in the Criteria of the Board
of Commissioners of Telkom.
The following are the details of the Multiple Positions of Members of the Board of Commissioners Telkom:
Name
Hendri Saparini
Hadiyanto
Parikesit Suprapto
Multiple positions
of the Board of
Commissioners
President
Commissioner
Commissioner
Independent
Commissioner
Position at other
institutions/companies
Name of other institutions/
companies
Executive Director
Center of Reforma on Economics
(CORE Indonesia)
Director General of State
Assets
Ministry of Finance
• Commissioner
• Commissioner
Kliring Penjamin Efek Indonesia
(KPEI)
Bank Bukopin
Menko Pembangunan &
Kebudayaan
Dolfie Othniel Fredric
Palit
Commissioner
Special Staff
tasKs and authority of the board of
Commissioners
tasks of the board of Commissioners
1. To monitor Company’s management policy that is
5. To propose to the GMS, through the Board of
Directors, the appointment of a public accounting
firm to audit the Financial Report of the Company
including the audit of internal control over financial
undertaken by the Board of Directors and to advice
reporting, in accordance with the regulations of the
the Board of Directors on the Company’s development
capital market authorities in which the Company’s
plans, annual work plan and budget of the Company,
shares are registered and/or listed.
the implementation of the provisions of the Articles of
6. To provide a report on the supervisory duties that has
Association, resolutions of the GMS as well as laws and
been done during the past financial year to the GMS.
regulations with regard to the interest of the Company.
7. To perform other monitoring duties specified by
2. To perform tasks, authority and responsibilities in
the GMS.
accordance with the provisions of the Articles of
Association and the resolutions of the GMS.
3. To examine and study the Annual Report prepared
by the Board of Directors as well as to sign the
Annual Report.
meetinG and the attendanCe of the board
of Commissioners meetinG
The Board of Commissioners holds meetings at least once
a month or at any time if it is deemed necessary by one or
more members of the Board of Commissioners, or upon
the authority of the board of Commissioners
1. To provide comments and advices to AGMS
written request from one or more shareholders who own
at least one-tenth share of all outstanding shares. The
regarding periodic reports and other reports from
quorum for all meeting of the Board of Commissioners
the Board of Directors.
is more than half of the members of the Board of
2. To monitor the implementation of the work and
Commissioners who attend the meeting or represented
budgeting plan of the Company (including the
by proxy granted to one of the Commissioners that
investment budget) for the preceding financial year
attends the meeting.
and to submit the assessment result and comments to
the AGMS.
The decision-making mechanism in the meeting of
3. To follow the development of the Company’s activities,
the Board of Commissioners is based on consensus. If
and in the event that the Company shows a setback,
a consensus can not be reached, the decision is then
to immediately ask the Board of Directors to announce
based on a majority vote of members of the Board of
to the shareholders and to provide advices on the
Commissioners that are present or represented at the
improvement measures that have to be taken.
meeting. If there is a balanced number of votes, then the
4. To provide comments and advices to the GMS
decision is based on the opinion of the Chairperson of
regarding any other issues deemed important for the
the Meeting.
maintenance of the Company.
213
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES internal meeting of the board of Commissioners
During 2015, the Board has held internal meetings for 15 (fifteen) times.
Board of Commissioners Attendance
HS
PS
HD
DOFP MGD
RF
PJW IAP
JSS
VGN
√
√
√
√
N/A
N/A
N/A
√
√
-
√
-
√
N/A
N/A
N/A
√
-
√
√
√
√
-
N/A
N/A
N/A
-
√
√
√
√
√
√
√
√
√
N/A
N/A
N/A
√
√
√
√
√
√
-
-
√
-
√
√
√
√
√
√
√
√
√
√
√
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
No
Date
Meeting Agenda
1 Wednesday,
1/7/2015
2
Thursday,
2/22/2015
3
Monday,
3/23/ 2015
4
5
Monday,
4/27/2015
Thursday,
5/21/2015
6 Wednesday,
6/3/2015
7
Thursday,
6/25/2015
Discussion on
the Letter of the
President Director
regarding corporate
action, Capacity
Building in the
Annual Report,
Singtel invitation
Proposal regarding
changes to the
Composition of
the Committee
Membership,
Progress on the
Draft Board of
Commissioners
Decree regarding
the Board of
Commissioners
Approval SOP,
Extension for Audit
Committee Staff,
Target Closing
Integrated Audit
Proposal regarding
the Remuneration
of the Company
Administrators
for 2015 (by a
Consultant), 2014
Audit update,
Proposal regarding
amendment to
Company’s AoA
Amendment to
the Membership
Composition of the
Audit Committee,
Discussion on Telkom
Projects
Progress on the
2016-2020 CSS and
Telkom projects
Discussion regarding
the Hearing invitation
from the House of
Representatives
Progress on the
2016-2020 CSS,
Approval request for
the Capex Satellite
Telkom-4, approval
request for Telkom
projects
214
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA No
Date
Meeting Agenda
8
Thursday,
7/30/2015
9
Monday,
8/24/2015
10 Monday,
9/28/2015
11 Wednesday,
10/21/2015
12 Monday,
10/26/2015
13 Monday,
11/30/2015
14
15
Friday,
12/4/2015
Tuesday,
12/22/2015
Remuneration
of the Board of
Commissioners,
Adoption of the
2016-2020 CSS,
Disclosure of the
Financial Statement
for the second
quarter of 2015
Completing the
Composition of the
Audit Committee, etc
Proposed
Amendment to the
Authority Threshold
of the Board of
Directors, Proposal
regarding a change
in the membership of
the Telkomsel Board
of Commissioners,
Joint Borrowing for
PT Telkom Akses
Purchase of Shares
in the Long Term
Incentive Program,
Satellite Insurance
Proposal, Extension
of Committee Staff
Performance
Assessment, Post-
retirement Insurance
2016 RKAP 2016,
Threshold
Amendment
Proposal, Extension
of Committee Staff
Adoption of 2016
RKAP
Subsidiary Company
Restructuring
Proposal,
Remuneration
of Staff, KEMPR
members
Attendance
Number of Meetings
Board of
Commissioners
Attendance Rate (%)
Board of Commissioners Attendance
HS
PS
HD
DOFP MGD
√
√
√
√
√
RF
√
PJW IAP
√
N/A
JSS
N/A
VGN
N/A
√
√
√
√
-
√
√
√
-
√
√
√
√
√
√
√
√
√
√
-
√
-
√
-
-
-
-
√
√
√
√
√
√
√
N/A
N/A
N/A
N/A
N/A
N/A
√
√
√
N/A
N/A
N/A
√
√
√
√
√
√
√
√
√
√
√
√
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
15
15
15
15
9
15
100 100
60
8
15
53
12
12
12
12
12
12
2
3
2
3
2
3
100
100
100
67
67
67
Note: HS (Hendri Saparini), PS (Parikesit Suprapto), HD (Hadiyanto), DOFP (Dolfie Othniel Fredric Palit), MGD (Margiyono Darsasumarja),
RF (Rinaldi Firmansyah), PJW (P. Pamela Johanna Waluyo), IAP (Imam Apriyanto Putro), JSS (Johnny Swandi Sjam), VGN (Virano Gazi
Nasution
215
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
Joint meeting of the board of Commissioners and board of directors
In 2015, the Board of Commissioners also held a joint meeting with the Board of Directors for 14 (fourteen) times with
the attendance recapitulation as follows:
Name
Hendri Saparini
Hadiyanto
Margiyono Darsasumadja
Dolfie Othniel Fredric Palit
Parikesit Suprapto
Rinaldi Firmansyah
P. Pamela Johanna Waluyo
Imam Apriyanto Putro
Johnny Swandi Sjam
Virano Gazi Nasution
Alex J. Sinaga
Abdus Somad Arief
Honesti Basyir
Muhammad Awaluddin
Heri Sunaryadi
Herdi Rosadi Harman
Dian Rachmawan
Indra Utoyo
Position
President Commissioner
Commissioner
Commissioner
Commissioner
Independen Commissioner
Independen Commissioner
Independen Commissioner
Commissioner
Independen Commissioner
Independen Commissioner
President Director /CEO
Network, IT & Solution Director
Wholesale & International Service Director
Enterprise & Business Service Director
Finance Director
Human Capital Management Director
Consumer Service Director
Innovation & Strategic Portfolio Director
Attended Meeting
13 of 14
7 of 14
10 of 10
6 of 14
14 of 14
10 of 10
10 of 10
1 of 4
4 of 4
4 of 4
11 of 14
13 of 14
12 of 14
12 of 14
14 of 14
14 of 14
13 of 14
13 of 14
No
Date
Agenda/Meeting Discussion
1
2
3
4
5
6
7
8
9
10
11
Thursday, January 22, 2015
The Company’s Performance in December 2014, Progress of Closing
Integrated Audit of Financial year 2014
Monday, February 23, 2015
The Company’s Performance in January 2015, the Amendment of the 2015
RKAP, Structure of Organization
Friday, February 27, 2015
Monday, March 23, 2015
Approval for Audited Financial Statement 2014 (Integrated Audit of
2014), Sign-Off Integrated Audit of Financial year 2014
The Company’s Performance in February 2015, the Proposed Agenda for
the 2015 GMS, PKBL Report, Dividend Pay-Out, Remuneration of BoD and
BoC, the Amendment of Articles of Association
Monday, April 27, 2015
The Company’s Performance in March 2015, others
Thursday, May 21, 2015
The Company’s Performance in April 2015, Progress of CSS 2016-2020
Monday, June 29, 2015
Thursday, July 30, 2015
The Company’s Performance in May 2015, Discussion on RJPP/CSS 2016-
2020
The Company’s Performance in June 2015, Approval of RJPP/CSS 2016-
2020
Monday, August 24, 2015
The Company’s Performance in July 2015, Progress on APWI Case
Monday, September 28, 2015
The Company’s Performance in August 2015
Monday, October 26, 2015
The Company’s Performance in September 2015, Filing Report of
Trimester III/2015
12
Monday, November 30, 2015
The Company’s Performance in October 2015, Telkom Group CFU & FU
and Telkom Group HCFU Implementation, Discussion on the 2016 RKAP
Monday, December 7, 2015
Approval of the 2016 RKAP
Tuesday, December 22, 2015
The Company’s Performance in November 2015, Revaluation of Assets,
Handling on Speedy Customers
13
14
216
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA report on the implementation of the
supervisory tasK of the board of
Commissioners
Throughout 2015, the Board of Commissioners has
conducted a series of activities in the framework of its
supervisory task as follows:
1.
The execution of Corporate actions.
2. Through other meetings with the Management,
coordinated by the Dekom Secretariat and the
committees within the Dekom Secretariat.
3. Through field monitoring in which Dekom with its
team made field visits both to assess the performance
achievement with Telkom at the location or to
monitor the progress of investment development.
2. The implementation of organizational transformation.
4. By receiving a report on the processes that are
3. Setting of the network modernization.
4. Flexi Migration.
5.
International Business Development.
6. Cellular network performance.
strategic and becoming common concern.
Through a series of supervisory that has been carried out
by the Board of Commissioners throughout the year of
2015, the Board of Commissioners came to the conclusion
The supervisory tasks are performed by the Board of
that the implementation of the management in 2015 has
Commissioners through a variety of activities as follows:
run very well. The management is capable in creating
1.
Through a Joint Meeting of
the Board of
revenue growth above the average of the industry,
Commissioners and the Board of Directors which is
achieving positive growth in POTS business as well as
held at least once a month. At the meeting, the Board
double digits mobile revenue growth. All of these results
of Directors addresses the Company’s performance
both operationally and financially as well as stock
prices in an integrated way in a report called the
Management Report.
are reflected by the good performance of the stock prices
compare to the stock index.
the enhanCement proGram of the CompetenCe of the board of
Commissioners
Throughout 2015, the Board of Commissioners completed several training programs to increase its competence, namely:
No
Name
Enhancement of the Board of Commissioners Competence
Program
Location
Date
1
Hendri Saparini
Capacity Building Board Of
Hongkong
January 29-30, 2015
Commissioners (Small Group
Discussion & Workshop)
Indonesia Academic Conference -
London
October 2-4, 2015
Scholar International Convention
2015
Working visit to Huawei
China
June 13-17, 2015
Headquarters and meetings with
China Telecom
2
Parikesit Suprapto
Capacity Building Board Of
Hongkong
January 29-30, 2015
Commissioners (Small Group
Discussion & Workshop)
Mobile World Congress 2015
Working visit to Huawei
Headquarters and meetings with
China Telecom
Spain
China
March 2-5, 2015
June 13-17, 2015
3
Dolfie Othniel Fredric
Capacity Building Board Of
Hongkong
January 29-30, 2015
Palit
Commissioners (Small Group
Discussion & Workshop)
Hadiyanto
Meeting with Ericsson Management
Romania
November 1-4, 2015
Mobile World Congress 2015
Spain
March 2-5, 2015
(update knowledge)
Margiyono Darsasumarja Meeting with Ericsson Management
Romania
November 1-4, 2015
4
5
(update knowledge)
217
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES No
Name
Enhancement of the Board of Commissioners Competence
Program
Location
Date
6
7
Rinaldi Firmansyah
Closing Bell Ceremony 20th di New
New york
November 22-26,
york Stock Exchange
2015
Pamiyati Pamela
Working visit to Huawei
China
Juni 13-17, 2015
Johanna
Headquarters and meetings with
China Telecom
Meeting with NEC Management
Japan
September 16-18,
2015
the assessment of the performanCe
of the board of Commissioners
Overall, the GMS is the one that conducts the assessment
• The Nomination and Remuneration Committee asked
on the performance of the Board of Commissioners, with
an independent party to compose a framework for the
regard to the tasks and responsibilities of the Board of
remuneration of the Board of Commissioners.
Commissioners in the relevant year. Accountability of the
implementation of the task and responsibilities of the
• The Nomination and Remuneration Committee
proposed the framework referred to the Board of
Board of Commissioners for the financial year of 2015 is
Commissioners.
carried out in the GMS that will be held in 2016.
• The Board of Commissioners proposes remuneration
remuneration of the board of
Commissioners
Each member of the Board of Commissioners is entitled
for the members of the Board of Commissioners to
the GMS.
• The GMS delegates the authority and power to the
Board of Commissioners with prior approval.
to a monthly remuneration and allowances. They are
• Shareholders of Dwiwarna A Series to determine
also entitled to bonus based on their performance
the remuneration of the members of the Board of
and achievements of the Company, which the amount
Commissioners.
is determined by the shareholders at the GMS. The
members of the Board of Commissioners are also entitled
to lumpsum benefits when they quit.
The amount of remuneration for the members of the
Board of Commissioners is calculated based on a
formula developed by the Nomination and Remuneration
Committee, which is also used to determine the salaries
of Directors, and the amount refers to the percentage
of the salary of the President Director which has been
approved by the GMS. In accordance with the Regulation
of the Minister of State-Owned Enterprises number PER-
04/MBU/2014, GMS is able to determine revenue by using
different type and/or certain magnitude from the one
stipulated in the Ministerial Regulation.
remuneration structure
The remuneration structure of the Board of Commissioners
refers to the provisions contained in the Regulation of the
State Minister of State-Owned Enterprises No.PER-04/
MBU/2014 on Guidelines on Income Determination for the
Board of Directors, Board of Commissioners and Board
of Trustees of the State-Owned Enterprises. The principle
for income determination of the Board of Commissioners
is set by the GMS, with the components consist of:
• Salary/Wages;
• Allowance;
• Facilities; and
• Performance Incentive.
proCedure for determination and
amount of remuneration of the
board of Commissioners
determining procedures
Remuneration of the Board of Commissioners determined
the remuneration amount of board of
Commissioners
For 2015, the total number of remuneration paid to the
entire Board of Commissioners was Rp50.1 billion.Taxes
from Remuneration borne by the Company amounted to
by the following procedures:
Rp3.5 billion.
• The Board of Commissioners asked the Nomination
and Remuneration Committee to draft the proposed
remuneration of the Board of Commissioners.
218
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA Remuneration Recapitulation of the Board of Commissioners of Telkom, 2015 is as follows.
Board of Commissioner
Hendri Saparini
Hadiyanto
Parikesit Suprapto
Dolfie Othniel Fredric Palit
Rinaldi Firmansyah
Pamiyati Pamela Johanna Waluyo
Margiono Darsasumarja
Imam Apriyanto Putro*
Johnny Swandi Sjam*
Virano Gazi Nasution*
Honorarium &
Allowance
1,190.2
1,026.4
1,026.4
1,071.2
718.5
723.5
723.5
347.2
347.2
347.2
-
Jusman Syafii Djamal**
Note *) until AGMS date of April 17, 2015
**) until EGMS date of December 19, 2014
share ownership by members of
board of Commissioners
Value (Rp million)
Tantiem & THR
254.1
5,722.6
5,722.6
227.6
72.3
72.3
72.3
5,870.3
9,622.1
8,849.9
6,131.0
Total
1,442.2
6,749.0
6,749.0
1,298.8
790.8
795.8
795.8
6,217.5
9,969.3
9,197.1
6,131.0
Number of
Shares
Percentage of
Ownership
Directors’ Charter.
management, the Board of Directors adhered to the
Articles of Association, the GMS decisions and Board of
Name
Hendri Saparini
Hadiyanto
Dolfie Othniel
Fredric Palit
18,982
519,640
17,084
0.00002%
0.00053%
0.00002%
the board of Commissioners
seCretariat
The Board of Commissioner is assisted by a Secretary
In the management of the company, each member of
the Board of Directors can act and decide on a policy
based on the duties and authority given, but nevertheless
remains a collegial responsibility in the management
of the company. Execution of tasks according to this
authority should be solely executed according to the
aims and objectives of the company. It thus, reflects the
principle that the position of each respective member of
of the Board of Commissioners, who is responsible for
the Board of Directors including the President Director is
ensuring that the execution of the Board of Commissioners
the equivalent, in which the President Director task is to
duties is in accordance with the Company’s Articles of
coordinate the activities of the Board of Directors.
Association and existing legislation.
the board of Commissioners address
The official address of Telkom’s Board of Commissioners
board of direCtors’ Charter
In carrying out its duties and authority to manage the
company, the Board of Directors of Telkom is guided by
is Graha Merah Putih, 5th Floor, Jl. Jend. Gatot Subroto,
the Board of Directors’ Charter, a Company’s Regulations
Kav.52, Jakarta 12710, Indonesia.
board of direCtors
tailored specifically to serve as a guide for members of the
Board of Directors to interact in managing the company in
an efficient, effective, accountable and responsible way.
definition / General eXplanation of
board of direCtors
The Board of Directors is the organ of the company who
The Board of Directors’ Charter contains agreements
which include mechanism and labor division arrangement
among the members of the Board of Directors that are not
is fully responsible for the management of the company
for the interests and objectives of the company and
stipulated in the Articles of Association and the provisions
of the legislation, and are aimed to increase and coordinate
represents the company both inside and outside the
the performance of the Board of Directors as well as to
court in accordance with the provisions of the Articles
optimize the use of working time in managing the company.
of Association. In carrying out the duties of corporate
219
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
The currently applicable Board of Directors’ Charter
c. has never been convicted of a criminal offense that
is established by the Resolution of the Board of
is detrimental to the state finance and/or related to
Directors of the Limited Liability Company (Persero)
the financial sector; and
PT Telkom Indonesia Tbk No. PD.604.00/r.00/HK000/
d. was never a member of the Board of Directors
C00-D0030000/2011 dated July 11, 2011 on BOD Charter.
and/or member of the Board of Commissioners
and during his or her tenure: (a) had not organized
Telkom Board of Directors’ Charter consists of four chapters,
the AGMS, (b) his or her accountability report as a
namely: Chapter I. Introduction; Chapter II. Board of
member of the Board of Directors and/or member
Directors’ Charter; Chapter III. Closing; Chapter IV. Annex.
of the Board of Commissioners was not accepted by
the GMS or had not given his or her accountability
As stated in the Charter, the intent and purpose of the
report as a member of the Board of Directors and/
drafting and enactment of the Charter are as follows:
or member of the Board of Commissioners to the
• The intent of the Charter is to guide the management
GMS, and (c) had never caused the company who
of the Company through the implementation of
has a permit, approval, or registration of OJK to not
good corporate governance in accordance with the
fulfill the obligation to submit annual reports and/or
legislation and by upholding the prudential principle.
financial reports to OJK.
• The purpose of the Charter is:
4. has a commitment to comply with
laws and
• to achieve efficiency and accelerate decision-making
regulations; and
process undertaken by the Board of Directors.
5. has knowledge and/or expertise in the required field of
• to reduce bureaucracy in the governance of the
the Issuers or Public Company.
administrative management of the Company.
• to support the achievement and improvement of
the performance of the Board of Directors in each
selection of members of the board of directors
• Selection of members of the Board of Directors of
field of work.
Criteria of board of direCtors
members
Directors are appointed and dismissed by the resolution
Telkom for the period of 2014-2019 is carried out
through the Fit and Proper Test based on the Regulation
of the Minister of State-Owned Enterprises No. Per 01/
MBU/2012 on the Requirements and Procedures for
Appointment and Dismissal of Members of Board of
of the GMS. To be elected, a candidate must be nominated
Directors of State-Owned Enterprises and some of the
by the Dwiwarna A Series Shareholder. The tenure of
changes that accompany it, including:
each Director of Telkom commences from the date of
• Regulation of the Minister of State-Owned Enterprises
appointment to the AGMS in the next five (5) years.
No.Per-06/MBU/2012 on the Amendment of the
Shareholders in the AGMS or EGMS are entitled to dismiss
Regulation of the Minister of State-Owned Enterprises
members of the Board of Directors at any time before his
No.Per 01/MBU/2012 on the Requirements and
or her term ends.
Procedures for Appointment and Dismissal of Members
of Board of Directors of State-Owned Enterprises;
Criteria of the members of the board of directors
Based on the Law No. 40 year 2007 regarding Limited
• Regulation of
the Minister of State-Owned
Enterprises No.Per-16/MBU/2012 on the Second
Liability Companies, Regulation of the Minister of State-
Amendment of the Regulation of the Minister of
Owned Enterprises No.1/MBU/2012 on Procedures for the
State-Owned Enterprises No.Per 01/MBU/2012 on
Appointment of Directors of the State-Owned Enterprises,
the Requirements and Procedures for Appointment
and the Regulation of OJK No.33/POJK.4/2014 on the
and Dismissal of Members of Board of Directors of
Board of Directors and Board of Commissioners of Issuers
State-Owned Enterprises;
or Public Company, a member of the Board of Directors
• Regulation of the Minister of State-Owned Enterprises
is an individual who meets the requirements upon
No.Per-09/MBU/2014 on the Third Amendment of the
appointment and during his or her tenure:
1. Has a good character, morals, and integrity.
2. is proficient in undertaking legal actions.
3. In the 5 years prior to appointment and during his or
Regulation of the Minister of State-Owned Enterprises
No.Per 01/MBU/2012 on the Requirements and
Procedures for Appointment and Dismissal of Members
of Board of Directors of State-Owned Enterprises; and
her tenure, he/she:
a. has not been declared bankrupt;
b. was never be a member of the Board of Directors
and/or member of the Board of Commissioners
• Regulation of
the Minister of State-Owned
Enterprises No.Per-20/MBU/2014 on the Fourth
Amendment of the Regulation of the Minister of
State-Owned Enterprises No.Per 01/MBU/2012 on
found who is found guilty for causing a company to
the Requirements and Procedures for Appointment
go bankrupt;
and Dismissal of Members of Board of Directors of
State-Owned Enterprises.
220
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA • Nevertheless, to determine the members of the Board
All members of the Board of Directors who are currently
of Directors in the following years, Telkom will use the
in office have met the composition and diversity of
Regulation of the Minister of State-Owned Enterprises
shared and individual expertise that are required to
No.PER-03/MBU/02/2015 issued on February 17, 2015
run a professional, effective, efficient and accountable
in organizing the Fit and Proper Test for candidates for
management of the company in order to fulfill the
the Board of Directors.
expectations of stakeholders.
Composition, diversity and term of
offiCe of the board of direCtors
the Composition and diversity of the board of
directors
The composition and diversity of the Board of Directors
Composition and term of office of the board of
directors
Based on the resolution of the AGMS dated April 17, 2015,
the composition of Telkom’s Board of Directors has not
changed, so it is still the same as the results of the 2014
of Telkom is a combination of desired characteristics in
EGMS. Therefore, the composition of Telkom’s Board of
terms of the body of the Board of Directors as a whole
Directors is as follows:
and each candidate members of the Board of Directors
individually in accordance with the development needs
Table of Composition of Personnel and Tenure of Board of
of the Company. The combination is determined by
Directors of Telkom up to December 31, 2015
considering the skills, knowledge and experience that fit
with the division of tasks and functions of the office of the
Board of Directors in supporting the achievement of the
goals of the Company. In such manner, Telkom ensures
the combination of characteristics and expertise of each
member of the Board of Directors will form a unity that
will impact the provision and speed of decision making
of the management of the Board of Directors who always
share responsibility.
Directors
Title
Alex J. Sinaga
Heri Sunaryadi
Indra Utoyo
President
Director
Director
Director
Dian Rachmawan
Director
In determining the composition of the Board of Directors
of the Company, Telkom always considers certain specific
aspects for strategic positions and tasks, especially for the
office of financial management, given at the end of each
management period, the Board of Directors is required to
be responsible for the management results in the form of
Muhammad
Awaluddin
Abdus Somad
Arief
Herdy Rosadi
Harman
Director
Director
Director
Financial Report and Annual Report delivered at the GMS.
Honesti Basyir
Director
The Financial Report is signed by the President Director
The
commencement
year of tenure
2014
2014
2007
2014
2012
2014
2014
2012
and Director of Finance. While the Annual Report, which
As a follow up the implementation of the EGMS on
basically refers to the prepared Financial Report, is signed
Friday, December 19, 2014, Telkom has held a meeting of
by the entire management of the Company, which are the
the Board of Directors on the same date and assigned
Board of Commissioners and Board of Directors.
The disclosure and preparation of financial information
presented in the financial statements will depend on the
expertise and/or knowledge of the Board of Directors,
nomenclature for the Board of Directors of Telkom as
follows:
1. Alex J. Sinaga as President Director
2. Heri Sunaryadi as Director of Finance
3. Indra Utoyo as Director of Innovation and Strategic
in particular the member of the Board of Directors
Portfolio (“ISP”)
which oversees the field of accounting or finance. The
4. Dian Rachmawan as Director of Consumer Service
expertise qualification and/or knowledge in the field of
(“CONS”)
accounting owned by member of the Board of Directors
5. Muhammad Awaluddin as Director of Enterprise and
will be able to provide assurance on the accuracy of the
Business Service (“EBIS”)
preparation of financial reports. Therefore, in appointing
6. Abdus Somad Arief as Director of IT Network and
the Finance Director, Telkom always considers carefully
Solution (“NITS”)
the background of the relevant skills and competencies in
finance and accounting.
7. Herdy Rosadi Harman as Director of Human Capital
Management (“HCM”)
8. Honesti Bashir as Director of Wholesale & International
Service (“WINS”)
221
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES tasKs, responsibilities and
authorities of direCtors
In carrying out its tasks and responbilities as well as using
its authority, the Board of Directors implement distribution
• Periodically report the performance of the Company
in accordance with the provisions applicable to
public companies.
of tasks and responsibilities among the members of the
2. Director of Finance (“KEU”)
Boards of Directors’ Charter, which are as follows:
1.
The distribution of tasks and responsibilities of each
• Determine the concept and formulation of the
Long-Term Plan for the Company’s financial scope
member of the Board of Directors is determined by
within the Telkom group.
the Resolution of the General Meeting of Shareholders
and, in the case where the resolution is not made, the
distribution of tasks and responsibilities of members
of the Board of Directors is determined by the
resolution of the Board of Directors.
• Facilitate the formulating process of the concept of
corporate strategy level, especially financial & assets
perspective to aspects such as, but not limited
to, strategic budgeting, business and investment,
parenting strategy, subsidiary performance, capital
2. The
outlining
of
duties,
authorities
and
management and supply management.
responsibilities of members of the Board of Directors
is further stipulated in the Company’s Regulation
on Organizational Structure and other Company’s
Regulations that set the authority of each member of
the Board of Directors.
tasks description of each member of the boards
of directors
The task of each member of the Board of Directors
• Define the functional strategy and policy in the
field of finance and assets, which include, among
others, but not limited to, financial policy, asset
management policy, supply management policy
and financial system support policy.
• Define strategic and functional policies in the field
of risk management to ensure the effectiveness of
the business continuity management.
• Managing investor relations in order to maintain
in accordance to the field of activities which they are
investor psychology.
responsible, namely:
1. President Director as the CEO of Telkom Group
• Coordinate the process of structuring and/
or reconstructing aspects of the corporate
philosophy that include, but is not limited to,
vision, mission, goals, corporate culture, as well as
leadership architecture.
• Determine
the governance policy, financial
accounting
management,
management
accounting, corporate finance, supply and risk as
well as control implementation.
• Determine the policy, governance and mechanism
management of the budgeting process of the
Company (Company’s Budget Plan).
• Formulate and declare strategic direction in order
• Carry out advisory functions in determining strategy
to set the Company’s ability to achieve sustainable
competitive growth in all of our business portfolio,
at the level of corporate level strategy, in particular
for matters related to Telkom’s financial resources
risk management as well as interfacing with
in the group.
external constituent.
• Control
the
function of strategic planning
within the scope of Telkom group and direct the
development efforts with a focus on the growth of
• Ensure effective management of all risks in the
business processes within the scope of the whole
unit under the Finance Directorate.
new business portfolio.
3. Director of Innovation & Strategic Portfolio (“ISP”)
• Control
the direction of
the
corporate
• To determine the concept and formula of
in
the attempt of driving new business,
the Company’s Long-Term Plan (corporate
entering/developing new markets as well as
strategic scenario).
internationalization/regionalization.
• Control the management of strategic aspects
from financial functions, human capital as well
as innovation and strategic portfolio of the entire
• To determine the governance policies and the
mechanisms of the management of corporate
planning and strategy (policies on the level of
planning and strategy - corporate level, business
business portfolio that runs within the scope of the
level and functional level).
Telkom group.
• To determine the strategy and the policy of the
• Lead the process of leadership development of the
Telkom Group’s business portfolio.
Telkom Group, appoint as well as dismiss certain
position holders in accordance with the stipulated
career management regulations, and develop
Telkom leaders as a group.
222
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA • To determine
the
strategy, policy
and
• Determine
the policy, governance, coaching
recommendation
for corporate action and
mechanism and
interrelation with entities/
strategic investment for the development of
institutions
related
to
the human
resources
Telkom Group’s business.
management, including but not limited to, institutions
• To determine the innovation strategy in order to
that deal with pension fund management, the health
explore new sources of growth for Telkom Group’s
of employees and retirees, the development of skills
business portfolio.
and competencies or educational institutions, as
• To determine the parenting strategy to harmonize
well as employee union.
and optimize the capability of the Telkom Group’s
•
Implementing a program of Partnership and
business entities.
Community Development.
• Determine the policy, governance and mechanisms
• Carry out advisory
functions
in determining
of innovation in the development of Telkom Group’s
corporate strategy at the corporate level, particularly
business portfolio.
for matters related to human resources within the
• Determine the policy, governance and management
Telkom group.
mechanisms of Telkom Group’s synergy.
• Ensuring the effectiveness of the management of all
• Carry out advisory functions in the process of
risks in the business processes within the scope of
defining a strategy at the corporate level strategy,
the whole unit under the HCM directorate.
particularly for matters related to the development
aspects of the business portfolio.
5. Director of Network, IT & Solution (“NITS”)
• Ensuring the effectiveness of the management of all
• Determine business planning and strategy to
risks in the business processes within the scope of
leverage the ability of the Company’s resources in
the whole unit under the ISP directorate.
order to develop/raise/exploit established business/
services through the utilization of infrastructure, IT
4. Director of Human Capital Management (“HCM”)
and solution in synergy to support Telkom Group’s
• Determine the concept and formulation of the Long-
business portfolio.
Term Plan on Human Capital and Human Capital
• Determine policy, governance, and mechanism
Master Plan as a group.
in order to utilize the infrastructure/network to
• Facilitate the process of formulating the concept
support Telkom Group’s business portfolio.
of corporate level strategy, especially for aspects
• Determine policy, governance, and mechanism
related to the development of a center of excellence,
in order to utilize IT to support Telkom Group’s
for people aspect, human capital, organization
business portfolio.
design, corporate culture, leadership architecture
• Determine policy, governance, and mechanism
and industrial relation.
in order to shape superior performance over the
• Define functional strategy and policy in the areas
service/solution that supports the sustainable
of human capital, such as, but not limited to, the
competitive growth of Telkom Group.
field of human capital development, human capital
• Manage and control parenting mechanism
in
system, human capital operation, organization
accordance with the parenting strategy of all units
development, and industrial relations.
under the Directorate of Network, IT and Solutions
• Prepare and execute Telkom Smart Office programs.
(NITS) and/or other units that directly involved in
• Determine the policy, governance, management
the process of conducting utilization activities and
and planning mechanism as well as resources
infrastructure operations.
management (associated with the development,
• Ensure the effectiveness of the management of all
utilization and management of human resources)
risks in the business processes within the scope of
and organization development.
the whole unit under the Directorate of NITS.
223
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 6. Director of Consumer Service (“CONS”)
• Determine policy, governance and management
• Determine planning and business strategy to
mechanisms of sales function and/or account
leverage the ability of the Company’s resources
management of the corporate segment (enterprise,
in realizing competitive advantage to win the
government and business).
competition and for long-term growth of the
• Determine policy, governance, and customer
business portfolio of the consumer segment
relationship management mechanism of the
(consumer home services and consumer personal
corporate segment (enterprise government
services) within the scope of Telkom group.
and business).
• Determine parenting policies and mechanisms
• Ensure the effectiveness of the management of all
in order to create company value through the
risks in the business processes within the scope of
optimization and harmonization of interrelation
the whole unit under the Directorate of EBIS.
between “parent” and all business operations
managing entities of the consumer segment within
8. Director of Wholesale & International Service (“WINS”)
the scope of Telkom group.
• Determine planning and business strategy to
• Determine policy, governance and management
leverage the ability of the Company’s resources
mechanisms of marketing
function of
the
in realizing competitive advantage to win the
consumer segment.
competition and to achieve long-term growth of the
• Determine policy, governance and management
business portfolio of the wholesale and international
mechanisms of sales function and/or channel
partnership of the consumer segment.
business segment within the scope of Telkom group.
• Determine parenting policies and mechanisms
• Determine policy, governance, and customer
in order to create company value through the
relationship management mechanism of
the
optimization and harmonization of interrelation
consumer segment.
between “parent” and all business operations
• Ensure the effectiveness of the management
managing entities of the wholesale and international
of all risks in the business processes within the
business segment within the scope of Telkom group.
scope of the whole unit under the Directorate of
• Determine policy, governance and management
Consumer Service.
mechanisms of marketing function of the wholesale
and international business segment.
7. Director of Enterprise Business Service (“EBIS”)
• Determine policy, governance and management
• Determine planning and business strategy to
mechanisms of sales function and/or account
leverage the ability of the Company’s resources
management of the wholesale and international
in realizing competitive advantage to win the
business segment.
competition and to achieve long-term growth of
• Determine policy, governance, and customer
the business portfolio of the corporate segment
relationship management mechanism of
the
(enterprise, government and business) within the
wholesale and international business segment.
scope of Telkom group.
• Ensure the effectiveness of the management of all
• Determine parenting policies and mechanisms
risks in the business processes within the scope of
in order to create company value through the
the whole unit under the Directorate of WINS.
optimization and harmonization of interrelation
between “parent” and all business operations
managing entities of the corporate segment
(enterprise, government and business) within the
scope of Telkom group.
• Determine policy, governance and management
mechanisms of marketing function of the corporate
segment (enterprise, government and business).
224
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA deleGation of authority and Company’s manaGement poliCies by board of
direCtors
When a certain member of the Board of Directors is absent, the concerned member may appoint Temporary Substitute
Employee to directly take over the authority, duties and functions of the concerned member. The procedure of
appointment and accountability of the implementation of duties of the Temporary Substitute Employee is stipulated in
the Board of Directors’ Charter. During the reporting year, there is 42 delegation of authority of a member of the Board
of Directors to other members or other Temporary Substitute Employee.
meetinGs, attendanCe and results/resolutions of the meetinG of the board
of direCtors
The meeting of the Board of Directors is chaired by the President Director, however, this position can be replaced by
other Directors if the President Director is unable to attend for some reason. The meeting of the Board of Directors may
be held at any time if deemed necessary at the request of one or more members of the Board of Directors or at the
request of the Board of Commissioners or at the written request of one or more shareholders who own at least one-
tenth or more of the outstanding common shares.
Meeting quorum is achieved when more than half of the members of the Board are present or legally represented in
the meeting. Each member present at the meeting has one vote (and one vote for each one of the other Directors who
are represented).
The decision-making in the meeting of the Board of Directors is based on consensus. If consensus is not reached,
then the decision-making will be done through majority vote of members of the Board of Directors in attendance.
frequency of meetings and meeting attendance
Throughout 2015, meeting of the Board of Directors was held for 47 times with the level of attendance of each member
of the Board of Directors of Telkom is as follows.
Name
Alex J. Sinaga
Heri Sunaryadi
Indra Utoyo
Dian Rachmawan
Muhammad Awaluddin
Abdus Somad Arief
Herdy Rosadi Harman
Honesti Basyir
Title
President Director
Director Keu
Director ISP
Director Cons
Director EBIS
Director NITS
Director HCM
Director WINS
The number of
meetings attended
% Attendance
44
44
46
46
44
44
44
45
88
88
92
92
88
88
88
90
225
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES agenda
No
Date
Agenda
Jan 6, 2015
Monitoring Operational Performance, Financial and Telkom’s Shares as well as discussion on
Industry Condition of Telkom
Jan 13, 2015 Management of Internal Communication, Business Performance, Telkom’s Fund Raising,
discussion on Telco Industry, USO
Jan 20, 2015 Business Performance, Tax Management, Telco Industry, Progress of Integrated Audit
Financial year 2014, Satellite Business
Feb 4, 2015
Business Performance, Telkom’s Shares Performance, Telco Industry, Progress of TLT
Feb 10, 2015 Operation & Financial Performance
Feb 17, 2015 Operation & Financial Performance, Assets Management, GMS of the Subsidiaries, Telkom
Smart City, Telco Industry, Management Report of January 2015
Feb 24, 2015 Operation & Financial Performance, Telkom Smart City, Telco Industry
Mar 3, 2015
Operation & Financial Performance, Telkom’s Shares Performance, Assets Management, WiFi
Mar 10, 2015 Operation & Financial Performance, CRM IT Tools Development, Telco Industry
Mar 13, 2015
Conference call on Fy 2014
Mar 17, 2015
Update Workshop CSS, Operation & Financial Performance, WiFi, Cooperation on SmartCity,
Progress of SMPCS inauguration, Management Report of February 2015
Mar 24, 2015
Telco Industry, Operation & Financial Performance, Satellite
Mar 31, 2015 Operation & Financial Performance, Satellite, Management Workshop Report of Territory
Division, DAPEN’s Business, Telco Industry
Apr 7, 2015
Operation & Financial Performance, Telkom’s Shares Performance, Telco Industry
Apr 14, 2015
Preparation for the AGMS, Operation & Financial Performance, Program PMO, Endorsement
Preparation on the 60th Anniversary Commemoration of KAA, SMPCS Implementation
Apr 21, 2015 Operation & Financial Performance, Management Report of March 2015
May 12, 2015 Operation & Financial Performance, Telkom’s Shares Performance
May 19, 2015 Operation & Financial Performance, Progress of CSS, Telco Industry, Public Expose,
Management Report of April 2015
May 26, 2015 Operation & Financial Performance, Telco Industry
Jun 3, 2015
Operation & Financial Performance, TV Business, Telkom’s Shares Performance
Jun 9, 2015
Operation & Financial Performance, Program PMO, Telkom’s Shares Performance
Jun 16, 2015 Operation & Financial Performance, Program PMO, Telkom’s Shares Performance, Preparation
of MoU between Telkom – Ministry for Agrarian Affairs and Spatial/BPN, Business Content,
Management Report of May 2015
Jun 24, 2015 Operation & Financial Performance, Telco Industry
Jun 30, 2015 Operation & Financial Performance, High Speed Internet and Wifi, Content of UseeTV
Jul 7, 2015
Operation & Financial Performance, Telkom’s Shares Performance, Final Presentation of CSS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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Date
Agenda
26
27
28
29
30
31
32
33
34
35
36
37
38
Jul 14, 2015
yAKES Business, DAPEN Business, Operation & Financial Performance, Turn Around Program
Jul 28, 2015
Operation & Financial Performance, Turn Around Program, The Company’s Performance in
June 2015
Aug 5, 2015
Operation & Financial Performance, Turn Around Program, Satellite Business
Aug 18, 2015 Operation & Financial Performance, Management Report of July 2015
Aug 25, 2015 Operation & Financial Performance, Initiative Program of BUMN Synergy
Sep 1, 2015
Operation & Financial Performance, Progress of Telkom Landmark Tower, Bandung ICT Expo
2015, Transfer of Treasury Stock as a Result of BuyBack Share Program - Stage III Post ESOP
Sep 8, 2015
Operation & Financial Performance, Indihome, Video Business Strategy
Sep 15, 2015 Operation & Financial Performance, CAM 2016, Olimpiakom
Sep 22, 2015 Operation & Financial Performance, Digital Service Division and Change Management Group
Sep 29, 2015
Satellite Business, Permen 09/2015 PKBL, Operation & Financial Performance
Oct 6, 2015
Operation & Financial Performance, Progress of Telkom Landmark Tower, Organization of
Digital Service Division, KPKU 2015
Oct 13, 2015 Operation & Financial Performance, Telkom’s Shares Performance
Oct 20, 2015 Operation & Financial Performance, WINS, Preparation of the 2016 Telkom’s Calendar,
Management Report of September 2015
39
Oct 27, 2015 Operation & Financial Performance, EBIS & Unconsolidated, Transfer of the rest of Treasury
Stock Stage 3, Progress of KPKU Report, Telkom Smart Office
40
41
42
43
44
45
46
47
Nov 10, 2015 Operation & Financial Performance, Implementation of KPKU Assessment
Nov 17, 2015 Operation & Financial Performance, Management Report of October 2015
Nov 24, 2015 Operation & Financial Performance
Dec 1, 2015
Operation & Financial Performance, Telkom 3S Satellite, IPTV, TLT
Dec 8, 2015
Operation & Financial Performance, TeSCA Award 2015, Management Report of November
2015
Dec 15, 2015 Operation & Financial Performance, NARU Program, Progress of IPTV Platform
Dec 22, 2015 Operation & Financial Performance, The Company’s Performance in November 2015
Dec 29, 2015 Operation & Financial Performance
CompetenCe enhanCement proGram of the board of direCtors
As State-Owned Enterprises in general, Telkom has two types of program aimed at improving the competence of
members of the Board of Directors in carrying out its duties, namely the Orientation Program/Introduction of the
Company to the Board of Directors and Capacity Building Program.
orientation program/introduction of the Company
This program is a regular program carried out to improve mutual understanding among members of the newly
established Board of Directors. The focus of the Orientation Program includes, among others:
• Orientation Program about the Company shall be given to Members of the Board of Directors who serve for the first
time in the Company;
• The responsibility to hold the orientation program is at the President Director or if the President Director is absent,
the responsibility for the implementation of the orientation program is at the Main Commissioner or other members
of the Board;
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES The material provided in the Orientation Program includes the following:
•
Implementation of the principles of good corporate governance by the Company;
• Description of the company with regard to the aim, nature, scope of activities, products, financial performance and
operations, strategies, short-term and long-term business plan, competitive positioning, risks and various other
strategic issues;
• Explanation related to the delegated authority, internal audit, external audit, internal control systems and policies as
well as the duties and role of the Team, other Committees established by the Company;
• The legal responsibilities of the members of the Board of Directors;
• Description of the employment relationship, the duties and responsibilities of the Board of Directors;
• and other functions and responsibilities of the Board of Directors.
Given that there is no change in personnel composition of the Board of Directors of Telkom within the reporting year,
this program is not organized.
Capacity building program
This program is conducted through the implementation/participation of the members of the Board of Directors of
Telkom in various training programs conducted by the Company and/or credible external parties. Throughout 2015,
various training programs, workshops, conferences and seminars, attended by several members of the Board of
Directors for competence enhancement are as follows.
table on training/workshop/seminar to improve the competence of board of directors
Name
Program
Location
Date
Alex J. Sinaga
Indonesia Telecom and E-Commerce Conference 2015
Jakarta
March 1, 2015
Muhammad
Awaluddin
Asia-Africa Conference Commemoration Participant
Bandung
April 24, 2015
Ultimate Forces Session – Commissionership Training
Jakarta
September 5, 2015
BUMN Marketers Award 2015
Jakarta
September 5, 2015
Speaker at the “Assessment Indonesia Human Capital Study
2015”
Superior Performance Assessment Criteria (Kriteria Penilaian
Kriteria Unggul/”KPKU”)
Jakarta
October 1, 2015
Bandung
November 16, 2015
Workshop in Mix Method Research (MMR) & Software NVIVO 10 Bandung
February 28, 2015
Doctorates Program on Management National Seminar, Ministry
of Tourism, with the theme “Strategy to Achieve 20 Million
International Tourists by 2019: A Pentahelix Collaboration”
Bandung
May 02, 2015
Seminar “Power Talk - Transformation & Value Creation in
Banking & Telecommunication”
Jakarta
July 30, 2015
EXECUTIVE EDUCATION: Strategic Management: Creating and
Sustaining Competitive Advantage - Cambridge Judge Business
School
Cambridge October 03-10, 2015
Third Conference of GARCOMBS (The Global Advanced
Research Conference on Management and Business Studies)
“Strategic Partnership between Cluster Defense SOE and Hi-
Tech” FGD Participant
Bali
October 14-15, 2015
Bandung
December 02, 2015
Dian
Rachmawan
Executive Education: “Program HR Strategy in Transforming
Organizations”.
Jakarta
May 10-15, 2015
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
Name
Program
Location
Date
FTTH Council Asia Pacific 2015: Driving Indonesia’s focus on
extending broadband subscribers
Summit Between Huawei & Telkom: “The Rise of The King of
Digital”.
Jakarta
May 20, 2015
Jakarta
May 29, 2015
BRTI Sharing Session: “The Telecommunication Industry”.
Jakarta
November 2, 2015
Honesti Basyir Mobile World Congress 2015 Participant
Barcelona March 2-4, 2015
Abdus Somad
Arief
Benchmark One Network to Telecom Italy, Rome
Roma
March 5, 2015
Head of Delegation to the Public Hearing with the Guam Public
Utility Council (GPUC) for the GTA M&A process
Guam
August 11-13, 2015
Mobile World Congress (Participant)
Barcelona
February 2-4, 2015
Seminar INDOTELKO (Speaker)
Jakarta
March 24, 2015
FTTH Council Asia Pacific 2015 (Panelist)
Jakarta
May 20, 2015
IEEE-APWiMob Conference 2015 (Keynote Speaker)
Bandung
August 27, 2015
ITU Regional Workshop (Keynote Speaker)
Jakarta
September 10, 2015
World Radio Conference 2015 (Delegation)
Herdy Harman Sharing session with ThyssenKrupp
Geneva
November 23-28,
2015
Jakarta
August 19, 2015
Sharing session with the Malaysian Trade Union
Makasar
August 27, 2015
Sharing session with the Indonesia Human Capital Study (IHCS)
Jakarta
September 2, 2015
“Reward and Punishment for BUMN Executives” FGD
Jakarta
December 17, 2015
Heri Sunaryadi
Indonesia Telecom & e-Commerce Conference
Jakarta
March 12, 2015
“2015 Investment Prospects” by Bahana TCW Investment
Management”
Telkom Group Directorship Program
CIMB 9th Annual Indonesia Conference
Frankfurt
May 11, 2015
Bandung
June 10, 2015
Bali
June 11, 2015
Indra Utoyo
Participant at World Mobile Congress
Barcelona March 2-4, 2015
INSEAD Leadership Series 2015
Jakarta
June 12, 2015
Participant at Indonesian Business Forum (Executive Economic
Program)
Jakarta
September 21, 2015
Participant at Indonesian Economic Quo Vadis / National
Economic Seminar
Jakarta
October 5, 2015
Participant at CORE Indonesia
Jakarta
November 18, 2015
Participant at FGD Road Map BUMN 2015-2019
Kep.
Karimun
Jawa
November 20-22,
2015
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
evaluation/assessment of the
performanCe of the board of
direCtors
basic Criteria for qualitative and quantitative
assessments
Criteria used in the assessment on the performance of
parties who perform the assessment
Internal party who conducts the assessment on the
performance of the Directors’ Management Contract is
the Performance Committee and the Board of Directors.
Overall, the performance assessment of the Board of
Directors is carried out by the Board of Commissioners
members of the Board of Directors is based on a balanced
through
the mechanism of General Meeting of
scorecard that measures four main aspects, namely
Shareholders according to existing regulations.
financial, customer, internal business process and learning
and growth process as well as containing three elements
of Key Performance Indicator (KPI), namely shared KPI,
common KPI and specific KPI.
poliCies, proCedures and
remuneration of board of direCtors
bod remuneration policy
Each member of the Board of Directors is entitled to
Shared KPI is a KPI with same naming, target, realization
monthly remuneration and allowances. They are also
and achievement for the entire Board of Directors.
entitled to the tantiem based on the performance and
Common KPI is a KPI with same naming and target, yet
achievement of the Company, which amount is determined
it has different realization and achievement from each
by the shareholders at the GMS. Members of the Board
member of the Board of Directors. Specific KPI is a KPI
of Directors are also entitled to lump sum benefits when
that is different for each member of the Board of Directors
they quit from their position.
and a specific program that becomes a part of the main
task and priority of each Director and the Directorate that
Remuneration for the members of the Board of Directors
he or she leads.
implementing process of
assessment of the board of directors
Assessment of the performance of the Board of Directors
the performance
is calculated based on a formula developed by the
Nomination and Remuneration Committee, which is also
used to determine the salary of the members of the Board
of Directors, and the amount refers to the percentage of
the President Director’s salary approved by the GMS. In
is conducted both by the Board of Commissioners and
accordance with the Regulation of the Minister of State-
the General Meeting of Shareholders, by referring to
Owned Enterprises No. PER-04/MBU/2014, GMS can assign
the achievement of key performance indicator (“KPI”)
revenue by certain type and/or magnitude different from
of the Board of Directors in the execution of its duties
the one that is stipulated in the Ministerial Regulation.
and responsibilities in accordance with the Article of
Association, to achieve the realization of the Company’s
Budget Plan.
procedure to determine remuneration for the
board of directors
The procedure to determine remuneration for members
KPI achievement of the Directors, which will be a
of the Board of Directors is as follows:
reference assessment for the Board of Commissioners,
1. The Board of Commissioners asks the Nomination
is obtained after a process of internal determination.
and Remuneration Committee to draft the proposed
Assessment on the performance of the Board of
remuneration of the Board of Commissioners and
Directors is started by filling out the Management
Directors.
Contract online and it is then followed by a face-to-face
meeting as part of the clarification process and aimed
2. The Nomination and Remuneration Committee asks
an independent party to draw up a framework for
to determine final results of performance. The results
the remuneration of the Board of Commissioners and
will be submitted to the Performance Committee and
Directors.
President Director, which will be finalised and submitted
to the Board of Commissioners.
3. The Nomination and Remuneration Committee
the Board of
remuneration
proposes
the
to
Commissioners and Directors.
In 2015, the performance of the Board of Directors also
re-assessed by a Team appointed by the State Ministry
4. The Board of Commissioners proposes remuneration
of the members of the Board of Commissioners and
of State-Owned Enterprises to assess the company’s
Directors to the GMS.
performance with reference to the Superior Performance
5. The GMS delegate the authority and power to the
Assessment Criteria (KPKU) of State-Owned Enterprises.
Board with prior approval of Dwiwarna A Series
KPKU is none other than the superior performance
Shareholders to set the remuneration of the members
assessment criteria based on the Malcolm Baldrige
of the Board of Commissioners and Directors.
Criteria for Performance Excellence (MBCFPE).
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Comissioners request
NRC to provide
remuneration plans.
The draft is presented
to the GMS
3
2
NRC* asks advices
from independent
party
Independent party
provides advices to
NRC
4
5
GMS
Procedure and Mechanism of
BoC and BoD Remuneration
*NRC : Nomination and Remuneration Committee
type of remuneration
The type and amount of remuneration of the Directors
• Bonus/Performance Incentive
refer to the provisions of the Board of Commissioners
The provisions for determining bonus/performance
on the Remuneration of Commissioners and Directors,
incentive for the Board of Directors, as stipulated in
which is based on the Regulation of the State Minister
the Regulation, are among others:
of State-Owned Enterprises No. PER-04/MBU/2014
• Bonus is an annual employee benefits based on
on Guidelines to Determine the Income of Directors,
the company’s performance is determined by the
Board of Commissioners and Board of Trustees of State-
General Meeting of Shareholder.
Owned Enterprises. Based on the Regulation, the income
• Bonus / Incentives granted if the performance of
components of the Board of Directors consist of:
SOEs achieving the realization of the lowest levels
• The proportion of Director’s salary is set for 90% of the
of health with a score of 70 or the target level is
salary of the President Director.
reached despite health RKAP value is under 70.
• Various Allowances for Directors, at the discretion of
the amount of remuneration of directors in 2015
In 2015, total remuneration paid to all Directors is Rp119.2
billion. Taxes from Remuneration borne by the Company
amounted to Rp7.6 billion.
each company, include:
• religious holiday allowance
• A housing allowance
• Full insurance office
• Facilities for Directors
• 1 (one) official vehicle along with maintenance
and operational costs for each member of the
Board of Directors.
• Health facilities in accordance with the applicable
regulations of the Company.
•
legal assistance
for matters relating to the
implementation of duties.
• Other facilities corresponding ability of companies
such as communication costs, professional
association membership, club membership /
corporate members and representation costs (in
the form of corporate credit card).
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES remuneration table for each member of the board of directors
Board of Director
Alex J. Sinaga
Heri Sunaryadi
Indra Utoyo
Dian Rachmawan
Muhammad Awaluddin
Abdus Somad Arief
Herdy Rosadi Harman
Honesti Basyir
Arief yahya*
Ririek Ardiansyah*
Priyantono Rudito*
Rizkan Chandra*
Sukardi Silalahi
Honorarium
Tantiem & THR
Allowance
Value (Rp million)
2,112.0
1,900.8
1,900.8
1,900.8
1,900.8
1,900.8
1,900.8
1,900.8
-
-
-
-
-
548.4
486.7
12,755.3
486.7
12,755.3
486.7
486.7
12,755.3
11,581.8
12,265.3
12,265.3
12,265.3
12,265.3
300.0
300.0
300.0
300.0
300.0
300.0
300.0
300.0
-
-
-
-
-
Total
2,960.4
2,687.5
14,956.1
2,687.5
14,956.1
2,687.5
2,687.5
14,956.1
11,581.8
12,265.3
12,265.3
12,265.3
12,265.3
Note *) until EGMS date of December 19, 2014
share ownership by board of direCtors
Name
Alex J Sinaga
Indra Utoyo
Honesti basyir
Dian Rachmawan
Muhammad Awaluddin
Heri Sunaryadi
Abdus Somad Arief
Herdy Rosadi Harman
Number of Shares
Percentage of Ownership (%)
42,723
1,182,295
1,155,295
98,505
1,154,755
37,965
37,965
37,663
0.00004
0.00120
0.00118
0.00010
0.00118
0.00004
0.00004
0.00004
The Total accrued remuneration of Board of Commissioners and Directors for 2015 was Rp161 billion, consisting of
long-term incentives and tantiem.
Committees under the board of
Commissioners
in the event of disagreements between the management
and Accounting for its services rendered; (iii) to provide
recommendations to the Board of Commissioners
In carrying out its duties, the Board of Commissioners
regarding the appointment of an Accountant based on
is assisted by committees under the coordination of
independence, the scope of the assignment, and the
the Board of Commissioners, namely: Audit Committee,
fee; (iv) to ensure that the internal control structure
Nomination and Remuneration Committee, as well as
of the Company is implemented effectively, including
Planning and Risk Evaluation and Monitoring.
audit Committee
through examining complaints related to the accounting
and financial reporting processes, (v) to ensure that the
implementation of internal and external audit is conducted
in accordance with the applicable auditing standards, and
The Audit Committee was formed in order to meet the
(vi) to ensure the adherence of the Company against the
principles of accountability of the public state-owned
legislation in the field of capital market and other laws
company in accordance with the laws and regulations in
and regulations relating to the Company’s activities.
Indonesia. With the main task of enforcing accountability,
the Audit Committee has duties and responsibilities,
among others, as follows: (i) to ensure that the Company’s
Charter of audit Committee
The details of duties, responsibilities and obligations of
financial information is presented fairly in accordance
the Audit Committee are outlined in the Audit Committee
with financial accounting standards in Indonesia and the
Charter (Charter) that is applied based on the decision
legislation in force; (ii) to provide an independent opinion
of the Board of Commissioners. One of the main tasks
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of the Audit Committee is to conduct oversight of
2. Comply with the code of conduct established by
financial reporting process, including by monitoring and
the Company;
evaluating the independence of the independent auditor.
3. At least one member of the Audit Committee must
While the management is responsible for contents of
have the educational background and experience in
Financial Statement.
membership requirements
Fit and proper test for the Committees under the Board
of Commissioners
finance, accounting and auditing where the member
concerned is assigned as finance and accounting
expert of the Audit Committee;
4. Must have the knowledge to read and understand
financial statements and the audit process;
Based on the Audit Committee Charter, the membership
5. Must understand the business of the company, in
requirements of the Audit Committee are as follows:
particular services and business activities of the
independent Commissioner
1.
It is not the people who work or have the authority
Issuer or Public Company, the audit process, risk
management and regulations on Capital Market as
well as other relevant legislations;
and responsibility for planning, directing, controlling
6. Continuously
improve the competence through
or supervising activities of the Company within the
education and training;
last 6 (six) months;
7. Aware and understand the function of the
2. Not having shares, either directly or indirectly, in
Audit Committee.
the Company;
3. Not affiliated with the Company, members of the
Board of Commissioners, members of the Board of
accounting and financial expert requirements
1. Understand and comprehend the Financial Accounting
Directors or main shareholders of the Company;
Standards either in Indonesia and the United States;
4. Not having a business relationship, either directly or
2. Experienced in applying accounting standards, in
indirectly, with the Company’s business activities.
particular the ones that is related with accounting
independence requirements
1.
It is not a person in a Public Accounting Firm, Law
judgments
and
estimates,
actualization
and
establishment of reserves (of funds);
3. Experienced in preparing and carrying out a general
Firm, Office of Public Appraisal Services, or any
audit of the financial statements;
other parties who give assurance services, non-
4. Understand and comprehend the internal control over
assurance services, appraisal services and/or other
financial reporting, including the audit process.
consulting services to the Company for a minimum
of 6 (six) months before being appointed by the
Board of Commissioners;
2.
It is not the people who work or have the
term of offiCe of the members of
audit Committee
In 2015, there were several changes in the composition of
authority and responsibility for planning, directing,
the Audit Committee. The first change is in accordance
controlling or supervising activities of the Company
with the resolution of the Board of Commissioners No.
within 6 (six) months prior to appointment by the
02/KEP/DK/2015 dated February 2, 2015 which sets the
Board of Commissioners;
composition of the Audit Committee as follows: (i) Johnny
3. Not having shares, either directly or indirectly in
Swandi Sjam (Chairman - Independent Commissioner);
the Company. In the case of members of the Audit
(ii) Tjatur Purwadi (Secretary - external members who
Committee of the Company acquire shares either
are not affiliated); (iii) Virano Gazi Nasution (Member
directly or indirectly as a result of a legal event, then
these shares shall be transferred to another party
within a maximum period of 6 (six) months after
- Independent Commissioner); (iv) Parikesit Suprapto
(Member - Commissioner); and (v) Agus yulianto
(independent and unaffilitated external member).
obtaining the shares.
4. Not having a business relationship, both directly or
indirectly with the Company’s business activities;
5. Not affiliated with members of the Board of
Commissioners, members of the Board of Directors or
With the changes in the composition of the Board of
Commissioners set out in the Annual General Meeting of
Shareholders on April 17, 2015, the composition of the
Audit Committee has also changed in accordance with
the main shareholders of the Company.
the decision of the Board of Commissioners No. 06/KEP/
integrity and Competence requirements
1. Have high integrity, ability, knowledge, experience
compatible with its field of work and be able to
communicate well;
DK/2015 dated May 7, 2015, and consists of: (i) Rinaldi
Firmansyah (Chairman - Independent Commissioner);
(ii) Tjatur Purwadi (Secretary - external members who
are not affiliated); (iii) Parikesit Suprapto (Member -
Independent Commissioner); (iv) Dolfie Othniel Fredric
Palit (Member - Commissioner) and (v) Agus yulianto
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
(independent and unaffiliated external member). In
conformity with the provisions on Independence in
parikesit suprapto - independent Commissioner
Parikesit Suprapto is in charge of supervising and
the capital market, Mr. Dolfie Othniel Fredric Palit is
monitoring the corporate governance as well as
appointed as non-voting member.
monitoring the capital market regulations and other
In September 2015, Mr. Agus yulianto resigned from
the Audit Committee, therefore through the decision
of the Board of Commissioner No. 10/KEP/DK/2015
dolfie othniel fredic palit - Commissioner
He is in charge of supervising and monitoring the
of September 30, 2015, the composition of the Audit
corporate governance and monitoring the capital
legislation relating to the Company’s operations.
Committee is as follows:
Membership
Chairman
Secretary
Members
Name
Rinaldi Firmansyah (Independent
Commissioner)
Tjatur Purwadi (External and
unaffilitated external member)
Parikesit Suprapto (Independent
Commissioner)
Dolfie Othniel Fredric Palit
(Commissioner)
The following is a brief profile and the division of duties
for each member of the Audit Committee:
rinaldi firmansyah - independent Commissioner
As the Chairman of the Audit Committee, Rinaldi
Firmansyah is responsible for directing, coordinating and
monitoring the execution of the duties of each member of
the Audit Committee.
tjatur purwadi - secretary/member
Tjatur Purwadi has become a member of the Audit
Committee since March 1, 2014 and is assigned to facilitate
the execution of the duties of the Audit Committee,
correspondence, prepare documents, produce report
changes of the Audit Committee Charter, as well as
coordinate the selection process of the independent
auditor. In accordance with the decision of the Board of
Commissioner No. 10/KEP/DK/2015 of September 30,
2015, other than being the secretary of the Committee, he
is also appointed as the finance and accounting expert of
the Audit Committee.
Before becoming the secretary of Telkom’s Audit
Committee, Tjatur Purwadi worked at PT Telekomunikasi
Indonesia, Tbk since 1979 until 2012. During his work
in PT Telkom Indonesia, Tbk, Tjatur Purwadi held
several strategic positions of which he served as Vice
President (VP) - Financial and Logistics Policy and
Head of Internal Audit. After retiring from PT Telkom
Indonesia, Tbk, he served as Director - Assurance Team
KAP Tanudiredja, Wibisana and Partners/PwC. He holds
a degree in Accounting from Gadjah Mada University
and earned a Master’s degree in Management from
Padjadjaran University.
234
market regulations and other legislation relating to the
Company’s operations and monitoring the Company’s
information technology.
independenCe of the members of
audit Committee
Regulation of the Financial Services authority on the
Audit Committee requires that the Audit Committee
consists of at least 3 (three) members, one of whom is
an Independent Commissioner who acts as chairman,
while the other two members must be independent, one
of them should have expertise (in the context of Item 16A
of Form 20 F) in the field of accounting and/or finance. To
fulfil the independence requirements in accordance with
the existing regulations in Indonesia, an external member
of the Audit Committee:
1. Should not be an executive officer of the Public
Accounting Firm that provides audit and/or non-audit
services to the Company within six months prior to his
appointment as a member of the Audit Committee;
2. Should not be a Telkom executive officer within six
months prior to his appointment as a member of the
Audit Committee;
3. Should not to be affiliated with a majority shareholder;
4. Should not have a family relationship with the Board
of Commissioners or Board of Directors;
5. Should not have, directly or indirectly, shares in the
Company; and
6. Should not have any business relationship relating to
the Company’s business.
eXemptions from the listinG
requirements in the united states
for the audit Committee
The Law No. 40 year 2007 regarding Limited Liability
Companies does not require public companies to establish
an audit committee as required by the Listing Standards
of the New york Stock Exchange (“NySE”). However,
Regulation of the Financial Services Authority (FSA) No.
IX.I.5 and the Regulaton of Indonesia Stock Exchange
(IDX) No. 1-A requires the Board of Directors of a public
company listed in the Stock Exchange to establish an
Audit Committee comprising at least three members, one
of whom is an Independent Commissioner who acts as
chairman of the Audit Committee, while the other two
members must be independent, and a minimum of one of
them must have expertise in accounting and/or finance.
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA The NySE Listing Standards, which are established under
Aside from the above, unlike the requirements set forth
Rule 10A-3 (c) (3) of the Exchange Act, require a foreign
in the NySE listing requirements, based on the provisions
private issuer whose shares are listed on the NySE to have
applicable to the Audit Committee in Indonesia, Telkom’s
an Audit Committee comprised of independent directors.
Audit Committee does not have direct responsibility
Nevertheless, based on the Rule 10A-3(c)(3), foreign
for the appointment, compensation and retention of
private issuers may be exempted from the independence
external auditors. Telkom’s Audit Committee can only
requirements if (i) government or home country stock
recommend the appointment of an external auditor to
exchange requires the Public Company to have the Audit
the Board of Commissioners, and the decision of Board of
Committee; (ii) there is a separate Audit Committee from
Commissioners is subject to shareholders’ approval.
the Board of Directors that has members from both inside
and outside of the Board of Commissioners; (iii) Audit
Committee members are not elected by the management
and there is no executive officer in the company that acts as
a member of the audit committee; (iv) government or home
qualifiCation of members of the
Committee
financial expert of the audit Committee
The Board of Commissioners has appointed Mr. Tjatur
country stock exchange requires that the Audit Committee
Purwadi, the secretary of the Audit Committee, as a Financial
must be independent of the company’s management; and
and Accounting Expert of the Audit Committee as described
(v) the Audit Committee is responsible for the appointment,
in Item 16A of Form 20-F, and as an “independent” member
retention and oversight of the work of external auditors.
in accordance with the provisions of Rule 10A-3 under the
Telkom has an Audit Committee consisting of 4 (four)
members: 2 (two) Independent Commissioners, 1 (one)
Commissioner, and 1 (one) independent external members
who are not affiliated with Telkom.
Exchange Act. Mr. Tjatur Purwadi has been the secretary of
the Audit Committee since March 2014.
pre-approval proCedures and
poliCies of audit Committees
Telkom has
implemented pre-approval policies and
Not all members of the Telkom’s Audit Committee are
procedures that require all non-audit services given to the
independent directors as required in Rule 10A-3 under
Public Accounting Office designated as the independent
the Exchange Act. Telkom refers to a general exemption
auditor must first obtain the agreement of the Audit
under the Rule 10A-3(c)(3) on the composition of the
Committee. Based on the Audit Committee Charter,
Audit Committee. We are confident that the reference
non-audit services may be permitted to be done by the
on the general exemption will not create the reverse
independent auditor with the provisions: (i) the Board of
impact materially on the ability of the Audit Committee
Directors must convey to the Audit Committee (through
to act independently.
the Board of Commissioners) a description of non-audit
services to be done by the independent auditor; and
We also believe that the aim of restrictions that each of
(ii) Audit Committee will decide if the proposed non-
the members of the Audit Committee is an independent
audit services will influence the independence of the
director is to ensure that the Audit Committee is
independent auditor or will cause conflict of interest or
independent from the influence of management and
will cause common interest.
would provide a separate forum from the management in
which auditors and other interested parties can conduct
Consistent with Section 10(i)(B) from the Exchange
discussions in a straightforward manner. Regulations of
Act paragraph (c) (7) (i) (C) and Rule 2-01 Regulation
the Audit Committee issued by the Financial Services
S-X which was issued based on said Law, the Audit
Authority (OJK) require that each member of the Audit
Committee Charter gives exception to the Pre-Approval
Committee must be independent. Regulation of the Audit
requirements for non-audit services which is permitted if
Committee issued by the Financial Services Authority
(i) the total cost of non-audit services is not more than
(OJK) also requires that at least two members of the
five percent from the cost of audit paid for by Telkom
Audit Committee, the external independent members, are
to the
independent auditor during the accounting
not only independent of the management but also to the
year when said services were given; (ii) the proposed
Board of Commissioners and the Board of Directors and
services are not considered as non-audit services when
the Company as a whole. Therefore, we believe that the
the implementation agreement was signed. Besides the
standard set out in the regulation of the Audit Committee
aforementioned two things, non-audit services must be
issued by the Financial Services Authority (OJK) is quite
effective in ensuring the ability of the Audit Committee to
agreed upon beforehand by an Audit Committee member
who is granted the authority to give pre-approval from
act independently.
the Audit Committee or directly by the Audit Committee.
235
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES tasKs and responsibilities of the
audit Committee
Based on the Audit Committee Charter, the Audit
Committee is mainly responsible for:
• Holding regular meetings with internal and external
auditors without the presence of management, to
discuss evaluation results and their audits as well as
the quality of the Telkom financial report as a whole;
• Supervising the auditing process and the Company
• Receiving and handling complaints; and
finances reporting process;
• P roviding recommendations to the Board
of Commissioners on the appoi ntment of
extern al auditors.
• Discussing with internal and external auditors about
• Conducting other tasks given by the Board of
Commissioners, particularly
in fields related to
accounting and finances, as well as other obligations
required under capital market regulations.
all scope of work, including audit and non-audit work
The Audit Committee can appoint an independent
as well as their audit plans;
consultant or a professional adviser to assist in conducting
• Reviewing the Telkom consolidated financial report
its tasks.
as well as the effectiveness of internal control over
financial reporting (“ICOFR”);
worK meetinGs / meetinGs attendanCe
WORK MEETINGS / MEETINGS ATTENDANCE
Throughout 2015, the Audit Committee has held meetings as many as 34 times. The meetings were held according
to provisions in the Audit Committee Charter with the purpose of facilitating the implementation of tasks and
responsibilities of every Audit Committee member. The number of meetings and attendance levels are as follows:
number of audit Committee meetings table
Name
Rinaldi Firmansyah *
Johnny Swandi Sjam **
Virano Gazi Nasution **
Tjatur Purwadi
Parikesit Suprapto
Dolfie Othniel Fredric Palit ***
Agus yulianto ****
(*) Starting May 2015
(**) Until March 2015
(***) Starting May 2015
(****) Until August 2015
Number of
Meetings
Number of
Attendance
Attendance Percentage (%)
12
20
20
34
34
20
27
11
20
11
34
25
15
26
92
100
55
100
75
75
96
236
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA tasK implementation reports of the
audit Committee in 2015
The following is the activities report of the Audit
Committee for the 2015 financial year:
integrated audit
1. The Audit Committee has analyzed the management
report on the evaluation of management regarding the
effectiveness of internal control on Company financial
reporting and the Ey report on the effectiveness of internal
independent auditor and auditor independence
In 2015, Telkom once again appointed KAP Purwantono,
control on financial reports. The Audit Committee has
also discussed significant deficiencies (“SD”) identified
Suherman & Surja which then in 2015 became KAP
during the evaluation process and the auditing process
Purwantono, Sungkoro & Surja, member firm of Ernst &
with management and Ey as well as management plans
young Global Limited (“Ey”) as independent auditor to
to remediate internal control weaknesses on the financial
conduct an integrated audit in accounting period 2015. The
reports were not contained in SD of 2016.
re-appointment of Ey as independent auditor was decided
2. The Audit Committee has also discussed with internal
by the Board of Commissioners, in line with the decision of
auditors of the Company and Ey on their audit plan and
the Annual General Meeting of Shareholders (RUPS) on April
its entire scope. The Audit Committee has conducted
17, 2015 which delegated the authority to appoint the public
meetings with internal auditors and Ey, without the
accountant office to the Board of Commissioners.
presence of management, to discuss the results of the
examination and their evaluations on internal control
The Audit Committee has reviewed and discussed with Ey
on financial reporting as well as the quality of Company
about the quality and acceptability of the financial accounting
financial reporting as a whole.
standards implemented by the Company. Based on the results
of the integrated audit, Ey is responsible for providing views
The Audit Committee has also reviewed and discussed
on the proper presentation of the consolidated financial report
the consolidated financial audit report and notes on the
in accordance with financial accounting standards in Indonesia
consolidated financial audit report in the Annual Report (FORM
and the International Financial Reporting Standard (IFRS)
20F) with Company management. This discussion includes
and views on the effectivity of internal control over financial
quality and acceptability of financial accounting standards
reporting in line with the criteria from the Committee of
applied by the Company, the merit of significant accounting
Sponsoring Organizations of Treadway Commission (COSO).
estimate and judgment and adequacy of disclosure in the
consolidated financial report. Management has confirmed to
The review and discussion of the Audit Committee
the Audit Committee that the consolidated financial report: (i)
also relates to matters based on audit standards on
is the responsibility of management and was presented with
communications with the Audit Committee, standards
integrity and objectivity; and (ii) was presented in line with
from Public Company Accounting Oversight Board
Indonesian financial accounting standards and IFRS.
(“PCAOB”), Financial Services Authority (OJK) and US
SEC regulations, as well as other applicable regulations,
Based on the results of the discussions, the Audit Committee
must be discussed with the Audit Committee.
gave its recommendations to the Board of Commissioners,
and the Board of Commissioners agreed that the consolidated
In line with PCAOB 3526 – Communication with Audit
financial auditing report and notes on the consolidated
Committee Concerning Independence regulations, Ey has
financial report as well as the management evaluation on
conveyed a letter to the Audit Committee, which provided
the Company’s effectiveness of internal control over financial
an elucidation on all relations between Ey and the Company
reporting will be included in the Annual Report on Form 20F
that according to professional consideration they consider to
which will be reported by the Company to the US SEC.
disrupt independence. The Audit Committee has discussed
with Ey about the independence of the Public Accountant
Office concerning management and the Company by
considering the influence of non-audit services from the Public
Accountant Office. Through said letter, Ey has confirmed that,
according to their professional opinion, Ey is independent
from the Company.
237
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES whistleblower
1. The Audit Committee has arranged a procedure to
3. The Audit Committee has monitored findings
from the Audit Board of the Republic of Indonesia
receive and handle complaints related to accounting
(“BPK”) in 2014 and follow-ups have been done by
issues,
internal control and auditing,
including
Management. In 2014, BPK reported 14 findings by
procedures for keeping the anonymity of the reporter,
submitting 52 recommendations to Management and
and anonymous complaints by employees according
51 recommendations have been followed-up while 1
to Financial Services Authority Regulation No.IX. 1.5
recommendations have not. For the 2015, BPK audit,
and Sarbanes-Oxley Act of 2002 Section 301 on Public
until the date on this report, BPK is still in the process
Company Audit Committee.
of auditing.
2. In 2015, there were 3 complaints, which were sent to
the Whistleblower application, but after having been
4. Pursuant to the limited review of the IA unit, the
Audit Committee monitored and supervised financial
reviewed by the Audit Committee, the said complaints
reporting fraud and risks that may have a material
did not fit the Whistleblower criteria.
effect on Financial Statements.
3. In relations to company management risk, the Audit
Committee also supervises and monitors fraud risk
and financial reporting risks that might have material
impact on financial reporting through Internal Audit.
partnership program and Community development
(“pKbl”)
The Audit Committee has reviewed and discussed with
Management and Ey about the PKBL Financial Report
internal auditor
1. The Audit Committee reviews drafts of Annual Audit
of accounting year 2015 and the PKBL Implementation
Compliance Level Report on established regulations.
and Non-Audit Work Program Internal Audit Unit
(“IA”) year 2015 compiled based on company risk
level (Risk Based Approach Audit) before a decision
by Management.
2. The Audit Committee has reviewed and discussed
the findings or international consultations including
their recommendations towards the IA Annual Work
Program 2015 and has monitored Management follow-
ups based on the IA recommendations every quarter.
In 2015, there were 480 recommendations by IA to
the management and 340 have been followed-up,
meanwhile 140 recommendations are in the process of
follow-up because a large part of the recommendations
were submitted by IA on the Fourth Quarter of 2015.
Jakarta, March 28, 2016
rinaldi firmansyah
(Chairman of Audit Committee)
238
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA nomination and remuneration
Committee
nomination and renumeration
Committee personnel
The list of members of the Nomination and Remuneration
Committee (KNR) in line with the Decision of the Board of
Commissioners No. 1/KEP/DK/2015 on February 2, 2015
as follows:
Position
Name
President /
Hendri Saparini / President
Position
President /
Member
Secretary
Member
Secretary
Commissioner
Members
Ario Guntoro / Secretary of the
Board of Commissioners
Members
Hadiyanto / Commissioner
Imam Apriyanto Putro /
Commissioner
Dolfie Othniel Fredric Palit /
Commissioner
Parikesit Suprapto / Independent
Commissioner
Johnny Swandi Sjam /
Independent Commissioner
Virano Gazi Nasution /
Independent Commissioner
However, on November 3, 2015, in line with the Decision
of the Board of Commissioners No. 11/KEP/DK/2015, there
was a change in personnel, so that the membership of the
KNR became as follows:
Position
President /
Member
Secretary
Name
Hendri Saparini / President Com-
missioner
Ario Guntoro / Secretary of the
Board of Commissioner
Members
Hadiyanto / Commissioner
Dolfie Othniel Fredric Palit /
Commissioner
Margiyono Darsasumarja /
Commissioner
Parikesit Suprapto / Independent
Commissioner
Rinaldi Firmansyah / Independent
Commissioner
Pamiyati Pamela Johanna Waluyo /
Independent Commissioner
Furthermore, to comply with the requirements OJK
regulations of
the Nomination and Remuneration
Committee No.34/POJK04/2014,
then
the BoC
composition was changed based on BoC Decree No.13/
KEP/DK/2015 dated December 28, 2015 so that the
membership of the KNR became as follows:
Name
Parikesit Suprapto / Independent
Commissioner
Ario Guntoro / Secretary of the
Board of Commissioner
Hendri Saparini / President Com-
missioner
Hadiyanto / Commissioner
Dolfie Othniel Fredric Palit /
Commissioner
Margiyono Darsasumarja /
Commissioner
Rinaldi Firmansyah / Independent
Commissioner
Pamiyati Pamela Johanna Waluyo /
Independent Commissioner
desCription of eaCh Knr members’
duties
parikesit suprapto – president/independent
Commissioner
Hendri Saparini is the President of the Nomination and
Remuneration Committee and is responsible for giving
direction and coordination of the implementation of
Committee’s duties.
- president Commissioner,
hendri saparini
hadiyanto, dolfie othniel fredric palit, margiyono
darsasumarja – Komisaris, rinaldi firmansyah,
pamiyati pamela Johanna waluyo – independent
Commissioner
Members of the Committee and responsible for
coordinating
inputs
from other parties
related
to controlling shareholders on nomination and
remuneration issues.
ario Guntoro - secretary of the board of
Commissioners
Ario Guntoro is the Committee’s secretary who is not
a Committee Member, responsible for preparing and
managing the administration and documentation of
the Committee.
239
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES duties and responsibilities of the
nomination and remuneration
Committee
The duties and responsibilities of the Nomination and
Remuneration Committee are as follows:
nomination
• Develop policies, criteria, and selection required
for strategic positions within the Company, namely
the position one level below the Director and the
Management (members of the Board of Directors
and members of the Board of Commissioners) of the
consolidated subsidiary, which refers to the principles
of good corporate governance.
• Assisting the Board of Commissioners together or
• The composition of positions of the members of the
Board of Directors.
• Planning the succession of the members of the
Board of Directors.
• Making
assessments based on established
benchmarks as evaluation material
for
the
development of the members of the Board of
Directors’ abilities.
remuneration
• Provide
recommendations
to
the Board of
Commissioners to be conveyed to the General Meeting
of Shareholders (RUPS) through the A Dwiwarna
series shareholder about policies, magnitude and/or
structure of the remuneration of the Board of Directors
consulting with the Board of Directors in selecting
and Board of Commissioners;
candidates
for strategic positions within
the
• Remuneration of the Board of Directors and Board of
consolidated subsidiary Company (members of the
Board of Directors and members of the Board of
Commissioners);
• Giving
recommendations
to
the Board of
Commissioners to be delivered to the Dwiwarna A
series shareholder regarding:
Commissioners in the form of salary or honorarium,
allowances and facilities that are permanent in nature
as well as variable incentives.
• Conduct reviews on employment contract statements
and/or the performance of each members of the Board
of Directors.
meetinGs and attendanCe of the nomination and remuneration Committee
meetinGs
In 2015, the Nomination and Remuneration Committee has held 29 (twenty nine) meetings, including 19 (nineteen)
meetings in circulation form.
table of meetings and attendance of the nomination and remuneration Committee meetings 2015
no
date
meeting agenda
Approval of Post-
Retirement Payment (by
way of circular)
Proposal regarding
Changes to the
Composition of the
Committee, Progress on
the Draft Decree of the
Board of Commissioners
regarding the Board of
Commissioners Approval
SOP, extension of the
audit committee staff,
closing target for the
Integrated Audit
Proposal regarding the
Remuneration of the
Company Board for
2015 (by a Consultant),
Proposal regarding
amendment to the
Company’s AoA from
Management
Notification regarding
the Termination of Duties
of Mr. Salam (by way of
circular)
1
2
January 7,
2015
February
22, 2015
3
March 23,
2015
4
March 31,
2015
240
board of Commissioners attendance
hs
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
board of Commissioners attendance
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-
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√
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√
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√
√
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√
-
√
√
√
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√
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√
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√
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no
date
meeting agenda
5
March 31,
2015
Notification regarding
the Termination of Duties
of Mr. Sahat Pardede (by
way of circular)
6
April 2, 2015 Proposal for the
7
8
April 15,
2015
April 17,
2015
9
April 27,
2015
10 May 29,
2015
11
June 29,
2015
fulfillment of strategic
positions within
Telkomsel
Approval on the
Appointment of the Head
of the Internal Audit (by
way of circular)
Remuneration of the
Board of Directors
and the Board of
Commissioners for the
2015 Fiscal year and 2014
Fiscal year Reward (by
way of Circular)
Discussion on Telkom’s
projects, Changes to
the Audit Committee
membership composition
Payment of Long Term
Incentive (LTI) for PT
Telkom Indonesia, Tbk.
(by way of circular)
Proposal regarding the
Remuneration of the
Board of Directors and
Board of Commissioners
for the 2015 Fiscal year
and the 2014 Fiscal
year Reward (by way of
circular)
12
July 14, 2015 Payment of Reward for
13
July 30,
2015
the Secretary of the
Board of Commissioners
for the 2014 Fiscal year
(by way of circular)
Remuneration of the
Board of Commissioners,
adoption of the 2016-
2020 CSS, disclosure of
the Activities Report for
the second quarter of
2015
14 August 24,
2015
Completion of the Audit
Committee Membership
15 August 27,
2015
16 August 31,
2015
17
September
28, 2015
Payment of Long Term
Incentive – by way of
circular
Notification regarding
the Termination of Duties
of Mr. Agus yulianto (by
way of circular)
Board of Directors
Duties Threshold
Amendment Request,
Joint Borrowing for PT
Telkom Akses, Telkomsel
Board of Commissioners
Membership Change
Proposal
241
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
date
meeting agenda
no
18
September
30, 2015
19 October 1,
2015
20 October 1,
2015
21 October 21,
2015
22 October 26,
2015
23 October 26,
2015
Change of the Telkomsel
Board of Commissioners
(by way of circular)
Appointment of PT
Telkom Indonesia,
Tbk Nomination and
Remuneration Committee
Staff in the Document
Administration Division
(by way of circular)
Appointment of PT
Telkom Indonesia, Tbk
Board of Commissioners
Secretariat Staff in the
field of Institutional
Relations (by way of
circular)
Purchase of Shares in
the Long Term Incentive
Program, Satellite
Insurance Proposal,
Extension of Committee
Staff
Follow-up to the Long
Term Incentive (LTI) – by
way of circular
Company Board
Remuneration Survey
Consultant for 2015 (by
circular)
24 October 26,
Performance Assessment
2015
25 November
30, 2015
26 November
30, 2015
27 December
8, 2015
28 December
8, 2015
29 December
22, 2015
2016 RKAP, Board of
Directors Threshold
Amendment Proposal,
Extension of Committee
Staff
Appointment of PT
Telkom Indonesia Tbk
Board of Commissioners
Secretariat Staff for
the Audit Committee
Document Administration
(by circular)
Appointment of PT
Telkom Indonesia, Tbk
KEMPR Staff (by circular)
Appointment of PT
Telkom Indonesia, Tbk
KEMPR Secretary (by
circular)
Subsidiary company
restructuring proposal,
Staff Remuneration
board of Commissioners attendance
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√
√
√
√
√
√
√
-
-
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
attendance
number of meetings
29
29
29
29
26
29
24
29
21
21
21
21
21
21
7
8
7
8
7
8
board of Commissioners attendance rate
information: HS (Hendri Saparini), PS (Parikesit Suprapto), HD (Hadiyanto), DOFP (Dolfie Othniel Fredric Palit), MGD (Margiyono
Darsasumarja), RF (Rinaldi Firmansyah), PJW (Pamiyati Pamela Johanna Waluyo), IAP (Imam Apriyanto Putro), JSS (Johnny Swandi
Sjam), VGN (Virano Gazi Nasution)
100% 100% 90% 83% 100% 100% 100% 88% 88% 88%
242
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
report of the implementation worK of the nomination and remuneration
Committee in 2015
This report is a form of submission on tasks that have been performed by the Nomination and Remuneration Committee
throughout 2015. The report consists of changes to the membership of the Committee, as well as nomination and
remuneration reports in accordance with the responsibilities snd authority of the Nomination and Remuneration
Committee of the Board of Commissioners of PT Telkom Tbk (Persero).
Committee membership Composition
The composition of the Nomination and Remuneration
Committee based on the Charter of the BoC is chaired
Until now, there has been no members from outside the
Board of Commissioners.
by the Commissioner. The secretary of the Committee
The total number of meetings of the Nomination and
is held by the Secretary of the Board of Commissioners,
Remuneration Committee throughout 2015 is 29, 10 of
whose members include all members of the Board of
which are Internal Meetings of the Board of Commissioners,
Commissioners, including the President Commissioner.
with 19 meeting agreements in the form of circulars.
Throughout 2015, the membership composition of
the Nomination and Remuneration Committee has
undergone 2 (two) changes as a follow-up to changes in
nomination report
Throughout 2015, the Nomination and Remuneration
the composition of the Board of Commissioners, resulting
Committee has completed 2 (two) nomination processess,
from 2 (two) AGMS.
as follows:
a. Proposing the filling of Strategic Positions in PT
The first change was in accordance with the Decree of the
Telkomsel
This proposal is related to the replacement of one
Telkomsel Commissioner as set forth in a letter of the
Board of Commissioners to the President Director
of Telkom No. 051/SRT/Dk/2015 dated April 2, 2015
regarding: the proposed filling of strategic positions in
PT Telkomsel.
b. Approval of the Change in the Composition of the
Board of Commissioners of PT Telkomsel.
After undergoing and internal meeting of the Board
of Commissioners and Nomination and Remuneration
Committee on September 28, 2014, the Board of
Commissioners issued a letter to the Board of Directors
of Telkom through letter no. 152/SRT/DK/2015/RHS
dated September 30, 2015 regarding: Change in the
composition of the Board of Commissioners of PT.
Telkomsel.
Board of Commissioners No. 01/KEP/DK/2015, with the
following composition:
Chair/
Member
Secretary
: Hendri Saparini/President Commissioner
: Ario Guntoro/Secretary of the Board of
Commissioners
Members
: Hadiyanto/Commissioner
: Imam Apriyanto Putra/Commissioner
: Dolfie Othniel Fredric Palit/
Commissioner
: Parikesit Suprapto/Independent
Commissioner
: Johnny Swandi Sjam/ Independent
Commissioner
: Virano Gazi Nasution/ Independent
Commissioner
This is a follow-up to the AGMS dated December 19, 2014
The second change was in accordance with BoC Decree
No. 11/KEP/DK/2015, with the following composition:
Chair/
Member
Secretary
: Hendri Saparini/President Commissioner
: Ario Guntoro/Secretary of the Board of
Commissioners
Members
: Hadiyanto/Commissioners
: Dolfie Othniel Fredric Palit/
Commissioner
: Margiyono Darsasumadja/Commissioner
: Parikesit Suprapto/Independent
Commissioner
: Rinaldi Firmansyah/Independent
Commissioner
: Pamiyati Pamela Johanna Waluyo/
Independent Commissioner
243
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES remuneration report
As for remuneration, throughout 2015 the Nomination
Strategic Industries and Media through letter No. S-22/
D3.MBU/08/2015 dated August 24, 2015 regarding: LTI
and Remuneration Committee has conducted 4 (four)
payments for PT Telkom Tbk (Persero).
remuneration activities, as follows:
a. Remuneration proposal for the Board of the Company
to the Shareholder of Series A Shares (the Minister
c. LTI (Long Term Incentive) search Approval granted to
Mr. Imam Apriyanto Putro, Mr. Johnny Swandi Sjam and
of SOE) for the 2015 fiscal year and rewards for the
Mr. Virano Nasution upon receiving the letter from the
2014 fiscal year pursuant to the letter of the Board
Deputy Minister of SOE as the shareholder of Series
of Commissioners No. 059/SRT/DK/2015 dated April
A shares through letter No. S-22/D3.MBU/08/2015
17, 2015 regarding: Remuneration for the Board of
dated August 24, 2015, upon which the Board of
Directors and Board of Commissioners for the 2015
Commissioners subsequently issued letter No. 128A/
fiscal year and rewards for the 2014 fiscal year. This
SRT/DK/2015 dated August 27, 2015.
proposal was submitted pursuant to a study made by
an independent consultant.
This proposal received the approval of the shareholder
d. The execution of shares for the LTI vesting 1 program
of 2014. Based on the Nomination and Remuneration
of Series-A shares, through letter No. S-07/D3.MBU/
Committee meeting with a consultant on October
06/2015 dated June 25, 2015. To follow-up, the Board
21, 2015, the Telkom share purchase time for the LTI
of Commissioners issued a letter to the President
vesting 1 program was established, as outlined in the
Director No. 101/SRT/DK/2015/RHS dated June 29,
2015 regarding: Proposed Remuneration of the Board
of Commissioners for the 2015 fiscal year and reward
for the 2014 fiscal year.
b. Proposal of 4 alternative implementations of the
LTI on changes in the composition of the Board of
Commissioners. This proposal is reflected in the letter
of the Board of Commissioners to the Deputy Minister
of SOE on Agro Industries and Strategic Industries No.
081/SRT/DK/2015 dated May 29, 2015. Out of the four
proposals, one alternative was chosen, as contained
in the letter of the Deputy Minister of SOE for Mining,
letter of the Board of Commissioners No. 172/SRT/
DK/2015/RHS dated October 26, 2015.
Jakarta, March 28 2016
parikesit suprapto
(Chairman of Nomination and Remuneration
Committee)
244
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
planninG and risK evaluation and
monitorinG Committee (Kempr)
Kempr personnel
The composition of KEMPR personnel from April 30, 2014
brief profile of Kempr members
other than the board of
Commissioners members
rustanto hadimartono
joining KEMPR
Before
in early 2014, Rustanto
to February 2, 2015 in line with the Decision of the Board
hadimartono worked as a civil servant in the Investment
of Commissioners No.09/KEP/DK/2014 is as follows:
Coordinating Board (1983-1992). He then moved to the
Position
President
Secretary
Member
Name
Parikesit Suprapto
Widuri Meintari Kusumawati
Hadiyanto
Johnny Swandi Sjam
Virano Gazi Nasution
Imam Apriyanto Putro
Rustanto Hadimartono
On February 2, 2015, changes were made to the
composition of KEMPR membership through the Decision
of the Board of Commissioners No.03/KEP/DK/2015, so
that the membership of the KEMPR became as follows:
Position
President
Member
Name
Hadiyanto
Dolfie Othniel Fredric Palit
Imam Apriyanto Putro
Parikesit Suprapto
Johnny Swandi Sjam
Virano Gazi Nasution
Rustanto Hadimartono
private sector consecutively in Marathon Petroleum
Indonesia, Ltd. (1992), PPT Rothmans of Pall Mall
Indonesia (1992-1994), PT Anwar Sierad, Tbk (1994-
1997), PT Drassindo Persada Utama (1997-1998), PT
Satelit Palapa Indonesia (Satelindo 1998-2003) and PT
Indosat, Tbk (2003-2009). In addition to that, since 1984
to the present, he teaches at several private universities
on law and public policy. Rustanto Hadimartono gained
a Bachelors’ degree in law from Universitas Diponegoro
(1982), a Master of Laws in International Legal Studies
(LL.M.) from Washington College of Law – American
University (1987) and a Doctorate in Law from Universitas
Katolik Parahyangan (2011).
desCription of tasKs of eaCh member
of Kempr
hadiyanto - Commissioner
Hadiyanto is the chief of KEMPR and has the responsibility
of giving directions, coordinating, and monitoring tasks
from all members of the Committee.
dolfie othniel fredric palit – Commissioner
Commissioner Dolfie Othniel Fredric Palit was appointed
as a KEMPR member based on the Decision of the Board
of Commissioners Number: 03/KEP/DK/2015 of February
2, 2015 and No.07/KEP/DK/2015 of May 12, 2015 on
Composition of Telkom Planning and Risk Evaluation and
On May 12, 2015, changes were once again made to the
Monitoring Committee Membership Composition.
composition of KEMPR membership through the Decision
of the Board of Commissioners No.07/KEP/DK/2015, so
that the composition of KEMPR membership became as
follows:
Position
Name
President / Member
Hadiyanto / Commissioner
Member
Dolfie Othniel Fredric Palit /
Commissioner
Margiyono Darsasumadja /
Commissioner
Parikesit Suprapto /
Independent Commissioner
Pamiyati Pamela Johanna
Waluyo / Independent
Commissioner
Rustanto Hadimartono
245
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES As a member of KEMPR, Dolfie Othniel Fredric Palit
has the responsibility of supervising and monitoring
the implementation of RJPP/CSS, the implementation
pamiyati pamela Johanna waluyo – independent
Commisioner
As a member of KEMPR, Pamiyati Pamela Johanna
of RKAP, and the implementation of enterprise risk
Waluyo is responsible for supervising and monitoring
management as well as the implementation of non-
the implementation of RJPP/CSS, the implementation
organic business growth initiative.
margiyono darsasumadja - Commissioner
Commissioner Margiyono Darsasumadja was appointed
of RKAP and the implementation of enterprise risk
management as well as the implementation of non-
organic business growth initiative.
member of KEMPR based on the Decision of the Board
of Commissioners Number No.07/KEP/DK/2015 of May 12,
rustanto hadimartono – member
As a member of KEMPR, Rustanto Hadimartono is tasked
2015 on the Composition of Membership of the Telkom
with reviewing, evaluating, and/or reporting in the field
Planning and Risk Evaluation and Monitoring Committee.
of law, compliance and risk-management in supporting
As a member of KEMPR, Margiyono Darsasumadja
Company management done by the Board of Directors.
the supervisory work of the Board of Commissioners on
is responsible for supervising and monitoring the
implementation of RJPP/CSS,
the
implementation
of RKAP, and the implementation of enterprise risk
management as well as the implementation of non-
organic business growth initiative.
duties and responsibilities of Kempr
The scope of duties of the KEMPR is to:
• Comprehensively evaluate the Company Long Term
Plan (“RJPP”) or CSS and the Company Activities
Budget Plan proposed by the Board of Directors;
parikesit suprapto – independent Commissioner
As a member of KEMPR, Parikesit Suprapto
is
• Evaluate the implementation of RJPP and RKAP so
that they are in line with the targets of the approved
responsible
for supervising and monitoring the
RJPP and RKAP by the Board of Commissioners; and
implementation of RJPP/CSS, the
implementation
• Monitor
the
implementation of enterprise
risk
of RKAP and the implementation of enterprise risk
management within the Company.
management as well as the implementation of non-
organic business growth initiative.
meetinGs and attendanCe of the Kempr meetinGs
In 2015, the KEMPR has held 11 Committee meetings.
table of meetings and meetings attendance of the risk planning evaluation and monitoring
Committee, 2015.
Number of Meetings
CSS RKAP/Capex
Certain Actions
Attendance
Perecentage of
Attendance (%)
2
2
2
1
1
-
-
-
2
1
1
2
1
1
1
1
1
2
6
6
6
4
4
2
2
1
7
9
8
10
5
5
3
3
2
11
82
82
91
83
83
100
100
75
100
Name
Hadiyanto
Dolfie Othniel F.P
Parikesit Suprapto
Margiyono D.S*
Pamiyati Pamela J.W*
Virano Gazi Nasution**
Johnny Swandi Sjam**
Imam Apriyanto Putro**
Rustanto Hadimartono
Note :
*Starting from May 12, 2015
**As of April 21, 2015
246
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
report of Kempr duties
implementation in 2015
Throughout 2015, KEMPR has supervised and monitored
the implementation of the current CSS, the implementation
of the 2015 RKAP in 2015, the implementation of the capital
expenditure budget (capex) in the 2015 RKAP, analysis
of investments in subsidiaries and the implementation of
enterprise risk management. In addition, KEMPR has also
evaluated the proposed CSS for 2016-2020, the proposed
RKAP for 2016, as well as other tasks given by the Board
of Commissioners.
The activities of the Evaluation, Monitoring and Risk
Planning Committee in 2015, include:
1. Corporate strategic scenario (“Css”)
KEMPR monitors the implementation of the RJPP/CSS
for the period of 2015-2019, particularly, in relation to
the current year and the evaluation of the proposed CSS
for the period of 2016-2020 that serves as the basis for
the development of the 2016 Corporate Annual Message
(“CAM”) dan the 2016 RKAP. In accordance with the
periodal strategy updates of the RJPP, the CSS for the
period of 2016-2020 CSS is an update of the CSS for the
2015-2019 period. From the studies conducted, in order
to implement the 2016-2020 CSS, a comprehensive
transformation strategy and strong
is
required in order to achieve the expected outcomes. The
transformation of the organization in accordance with the
2016-2020 CSS led to the improvement of the synergy
and parenting model between Telkom and its subsidiaries.
leadership
2. annual business budget plan
In carrying out the 2015 RKAP, the Board of Commissioners
directs the Board of Directors to seek concrete measures
in anticipating the decline in profit growth, mainly by way
of cost transformation, increasing sales in order to be in
line with the capex deployment, customer/user retention,
the use of digital channels for the consumer segment, and
revenue assurance. As for the 2016 RKAP, the Board of
Commissioners also provides strategic directives, which
includes, among others:
a. Prioritizing and
synergy and
improving
the
coordination within Telkom Group;
b. Realizing Telkom’s commitment to
increase the
share of local content through the use of goods and
services in Telkom Group’s investment, business and
operational activities;
c. Conducting mentoring and consultancy to accelerate
the readiness of domestic products to be used in
Telkom Group’s investment, business, and operational
activities.
KEMPR’s focus in monitoring the implementation of
the 2015 RKAP include the monitoring of the 2015
RKAP’s realization. In order to obtain more optimal
monitoring results, KEMPR, together with the Board of
Commissioners conduct several field visits to monitor the
progress of the implementation of the RKAP. The field
visits tha have been conducted jointly by KEMPR and the
Board of Commissioners in 2015 include performance
monitoring visits to the regional working units in Central
Java and yogyakarta, Sumatra, West Java. Further, field
visits to review the deployment of optic directly by
Telkom Asccess have also been conducted in Balikpapan,
Medan, and Surabaya; as well as the construction of
telecommunication towers by Mitratel in Banjarmasin
and Manado.
3. enterprise risk management
KEMPR is tasked with monitoring the implementation
of ERM in 2015, including the handling of risks that have
a significant impact on the 2015 RKAP. During the 2015
monitoring period, several important risk issues arise,
namely the risk of competition, risks of uncertainty in
inorganic initiatives, project management weaknesses,
and the risk of new business development.
4. board of directors measures requiring the
approval of the board of Commissioners
Throughout 2015, KEMPR conducted a review on the
actions of the Board of Directors that require the approval
of the Board of Commissioners, that includes, among
others:
a. Capital expenditure budget release permit for the first
quarter of 2015;
b. Additional investment at Telkom Metra for funding the
start-up business;
c. Transfer of treasury stock resulting from share
buyback III;
d. Approval of the 2016-2020 corporate strategic
scenario;
e. Capital expenditure approval for the Satellite project;
In carrying out its duties in 2015, KEMPR has generated
several reports and studies (evaluations), with the
following details:
CSS RKAP Capex
Risk/
Legal
Certain
Action
Output
3
12
14
4
10
Jakarta, March 28, 2016
hadiyanto
(Chairman of KEMPR)
247
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
• Manage and store documents related to activities
of the Company including GMS documents, minutes
of meetings of the Board of Directors, minutes of
joint meetings between the Board of Directors and
the Board of Commissioners, and other important
company documents.
• Determine the criteria regarding the type and
content of information that can be presented to
the stakeholders, including information that can be
delivered as a public document.
Corporate seCretary offiCer
Telkom has appointed a Vice President (“VP”) of Investor
Relations who simultaneously carries out the duties
and functions of the Corporate Secretary in accordance
with FSA (OJK) Regulation Number 35/POJK.04/ 2014
regarding Corporate Secretary of Issuers or Public
Companies. The Investor Relations officer is responsible
for preparing the presentation of information between
the Company and the Shareholders in accordance with
the specified rules in relationship management, as well
as maintaining systematic feedback mechanisms to the
management to be able to respond to the dynamics of
the shareholders and the capital market on an ongoing
basis, effectively, and efficiently.
profile of Corporate seCretary offiCer
VP Investor Relations is chaired by Andi Setiawan who
joined Telkom Group as GM Investor Relations at PT
Telekomunikasi Selular in January 2014. On March 4, 2015,
he was appointed as VP Investor Relations (Corporate
Secretary) PT Telkom Indonesia Tbk. He previously
worked at PT Pemeringkat Efek Indonesia (2004) as
a Corporate Rating Analyst, then joined PT Bakrieland
Development Tbk as Corporate Secretary Manager
(2007), and subsequently worked in PT Summarecon
Agung Tbk as Manager of Investor Relations (2010). He
graduated from Universitas Indonesia with a Bachelor’s
Corporate seCretary/investor
relations (“ir”)
The Corporate Secretary plays an important role in
facilitating communication among the organs of the
company, establishing relationships between the company
and shareholders, Financial Services Authority, and other
Stakeholders, as well as ensuring the compliance of the
Company with rules and regulations in the Capital Market.
funCtion Corporate seCretary
According to the GCG Telkom Guidelines, the Function of
the Corporate Secretary includes:
• Synergy among related units
for socialization,
implementation, monitoring, reviewing the GCG.
• Synergy among
related units
including with
Subsidiaries
for
socialization,
implementation,
monitoring, and reviewing the implementation of
the GCG.
• Assist the Board of Directors in a variety of activities,
information, and documentation, among others:
• Creating a List of Shareholders;
• Attend Board of Directors Meetings and make a
minute of meeting;
• Organizing the implementation of the GMS.
• Prepare and communicate information that is accurate,
complete, and timely about the performance and
degree in Financial Management.
prospects of the Company to stakeholders.
• Publish Company information in a tactical, strategic,
and timely way.
duties and responsibilities of
Corporate seCretary
• Organizing the GMS.
• Attend Board of Directors meetings and
joint
meetings between the Board of Commissioners and
Board of Directors.
Corporate seCretary CompetenCe
enhanCement
In order to develop the competence of the Corporate
Secretary, we have participated in various training and
socialization events organized by various institutions
248
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA name of training
location
organizer
date
Certified Investor Relations – Training and Certification.
Jakarta
Leaders as Decision Architects.
Jakarta
The 4th Indonesia Fixed Income and High yield Bonds Forum.
Jakarta
Indonesia Investor
Relations Institue
Global Mind
Readers Program
Euromoney
Seminars Asia
June 29 –July 2
August 12
September 22
Corporate Report – Key Success to Develop an Integrated
Corporate Report.
Tangerang
Bostonprice Asia
November 18
Capital Market Regulation – Legal and Governance Compliance. Jakarta
Hadiputranto,
Hadinoto & Partners
November 20
IR Magazine Awards & Conference - South East Asia 2015
Singapura
BNy Mellon
December 4
Personal Data Protection in Indonesia
Data Protection in Asia
Foreign Corrupt Practice Act, Corporate Compliance and
Selected 20-F and other Matters
Jakarta
Hadiputranto,
Hadinoto & Partners
and Baker McKenzie
Desember 10
internal Control system
finanCial and operational Control
Management conducted an evaluation on the effectiveness
of the company’s disclosure controls and procedures
under the supervision and with the participation of the
management, including the President Director, which
is of the same level as Chief Executive Officer (“CEO”)
and Finance Director, which is of the same level as
Chief Financial Officer (“CFO”) (as such term is defined
in Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act). Based on this evaluation, the CEO and
CFO have concluded that, as of December 31, 2015, our
company’s disclosure controls and procedures were
effective. Disclosure controls and procedures conducted
by management include controls and procedures that
are designed to ensure that information required to
be disclosed in reports filed or submitted under the
Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the SEC’s
rules and forms, and that such information is accumulated
and communicated to our management, including the
CEO and CFO, as appropriate, to allow timely decisions
regarding required disclosure.
ComplianCe
Compliance is managed by the Legal & Compliance
unit under the Department of Corporate Secretary. This
unit seeks to ensure that the policies, decisions and
all of the company’s business activities conducted in
accordance with the provisions of the applicable laws and
regulations, both internal and external. We proactively
run a compliance policy at the business unit level and the
transactional level. Some compliance activities carried
out in 2015 include:
a. Supporting business activity by providing legal advice
through the delivery of legal review (legal opinion) on
the management action plan and the problems that
occur related to compliance with laws or regulations
(legal advisory).
b. Supporting company business activity / transactional
by conducting a review of every draft agreement /
contract (procurement and non-procurement) by
ensuring in advance that the procurement procedures
or partnerships already comply with procurement
procedures / partnership established by the company
and external regulations.
c. Conduct evaluation studies (legal review) on business
initiatives plans, policies and plans of cooperation that
will be carried out by the Company (legal review of
business and policy initiatives).
d. Settlement of
litigation and non-litigation cases
(Litigation).
evaluation on the effeCtiveness of
intenal Control
1. management report on internal Control over
financial reporting
The Company’s Management
is responsible
for
establishing and maintaining adequate internal control
over financial reporting, as such term is defined in
Exchange Act Rules 13a-15(f) and 15d-15(f). The internal
control over financial reporting is a process designed
by, or under the supervision of, the CEO and CFO, and
249
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES executed by the Board of Directors, management and
2. attestation report of the registered public
other personnel, to provide reasonable assurance
regarding
the
reliability of financial
reporting
accounting firm
The effectiveness of our internal control over financial
and the preparation of Consolidated Financial
reporting as of December 31, 2015 has been audited
Statements for external purposes in accordance
by KAP Purwantono, Sungkoro & Surja (previously
with International Financial reporting Standards as
Purwantono, Suherman & Surja), an independent
issued by the International Accounting Standards
registered public accounting firm, as stated in their
Board, and includes those policies and procedures
report which appears on the Consolidated Financial
that (1) pertain to the maintenance of records that,
Statements.
in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the
2. Changes in internal Control over financial
Company, (2) provide reasonable assurance that
transactions are recorded as necessary to permit
reporting
There have been no significant changes in our
preparation of consolidated financial statements in
Company’s internal control over financial reporting
accordance with International Financial reporting
during the most recently completed fiscal year that
Standards as issued by the International Accounting
would materially affect or are reasonably likely to
Standards Board, and that receipts and expenditures
materially affect, our Company’s internal control over
of the Company are being made only in accordance
financial reporting.
with authorizations of the Company’s management
and Board of Directors, and (3) provide reasonable
We are committed to continual improvements in
assurance regarding prevention or timely detection
internal control processes, and will continue to review
of unauthorized acquisition, use or disposition of the
and monitor the control over financial reporting and
Company’s assets that could have a material effect on
its procedures in order to ensure compliance with
the Consolidated Financial Statements.
the requirements of Sarbanes-Oxley Act and related
regulations as stipulated by COSO. We will also
Because of its inherent limitations, internal control
continue to assign significant company resources
over financial reporting may not prevent or detect all
from time to time to improve its internal control over
misstatements. Also, projections of any evaluation of
financial reporting.
effectiveness to future periods are subject to the risk
that controls may become inadequate because of
changes in conditions, or that the degree of compliance
internal audit unit
with the policies or procedures may deteriorate.
The management has assessed the effectiveness
of the company’s
internal control over financial
reporting as of December 31, 2015. In making this
assessment the management used the criteria set
forth in Internal Control – Integrated Framework
issued by the Committee of Sponsoring Organizations
of the Treadway Commission (“COSO”). Based on
this assessment, management concluded that as of
December 31, 2015, our internal control over financial
reporting was effective.
struCture and position of the
internal audit unit
As set forth in the applicable capital market regulations,
IA is a unit that is independent of other work units and is
directly responsible to the President Director.
250
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA below is a chart of the organizational structure of the telkom internal audit.
President Director
Board of Commissioner
SVP Internal Auditor
harry suseno hadisoebroto
VP Infrastructure &
Operations Audit
dani ramdani
VP Enterprise
Management Audit
heru muara sidik
VP Support & Subsidiary
Audit
budhi santoso
Chief Expert Strategic
Advisor Audit
internal audit Charter
Telkom IA unit has been equipped with the Internal Audit
The aforementioned Vision and Mission of the IA is
applied in the form of IA activities that are organized in
Charter as a formal company document, which contains
a systematic and measured manner, and in accordance
a description of the vision, mission, structure, status,
with the applicable standards ranging from preparation,
tasks, responsibilities and authority of the IA, including
implementation and monitoring of the follow-up results.
requirements for IA auditor personnel. The drafting of the
To this end, during the audit preparation phase, risk-
Internal Audit Charter is guided by international standards
based audit methodology is the main guideline which
for the practice of the internal auditing profession
emphasizes that determining the proper audit unit
issued by the Institute of Internal Auditors (“IIA”), and
(auditable) is based on the level of risk; the higher the
has been approved by the President Director and the
risk, the higher the need for auditing. The risk level of the
Audit Committee of the Board of Directors based on
audit object (auditor) is based on the risks that have been
decision No.Tel. 09/PW 000/UTA/COP-C0000000/2015
mapped and determined by the Company as well as the
regarding the Internal Audit Charter.
professional assessment by the IA itself.
vision, mission, tasKs and
responsibilities of internal audit
vision
As a “Smart Partner” for Management, Business Unit/work
Unit and subsidiaries in order to achieve the Company’s
objectives as well as a driving force for the whole range
of the Company and its subsidiaries in order to create
a culture of discipline in implementing all provisions of
the applicable legislation/policy/regulations/procedures/
business processes.
mission
1.
Provide services and internal audit consulting in a
professional, objective and independent manner for
Management, Business Unit/work Unit, and subsidiaries.
2. Provide assurance on the suitability of financial
reporting.
duties and responsibilities
The risk-based audit paradigm, in carrying out its
duties and responsibilities, have used the IA Audit
Management System (AMS), which is an application
system for documenting the implementation of risk-
based audits online.
Increasing the role of IA is done by improving quality
assurance for the company’s operations through audit
and non-audit activities. Audits are conducted to ensure
that business risks that may occur can be addressed
through effective internal controls. If deficiencies are
found in the control of a business process and/or the
risk of spiraling out of control, then a substantive test is
conducted, namely a further testing of the audit object in
order to explore root causes.
3. Actively guarding the implementation of internal
control, providing
support
in
raising GCG
implementation, and evaluating the implementation
of risk management.
Moreover, as a consequence of listing of shares on the
Indonesian Stock Exchange (BEI) and the New york
Stock Exchange (NySE), IA periodically carries out tests
and audits of the effectiveness and adequacy of internal
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES controls in the context of financial reporting in accordance
is directly responsible to the President Director. Telkom’s
with Internal Control over Financial Reporting (ICOFR)
head of Internal Audit is appointed and dismissed by
standards. In order to support the implementation of the
the President Director with the approval of the Board
audit and develop awareness towards the importance
of Commissioners. One of the implementation of the
of internal control for the business units, each quarter,
independence of the Internal Audit Unit in Telkom is the
the business unit perform Control Self Assessment
Internal Audit Report sent to the President Director and
(CSA) to the internal controls for which it is responsible.
copied to the Audit Committee (Board of Commissioners).
Periodically, IA evaluates the CSA results to measure their
adequacy and make recommendations for improvement
both for design and implementation.
The next stage is to participate in the activities of
the appointment proCedure and
name of the Chairman of the
internal audit
The Internal Audit (IA) Unit plays a role in exercising
internal consulting services. Internal consulting services
control over the Company’s business activities. The IA
is focused on, among others, Company operations
is headed by a Senior Vice President of Internal Audit
that can be grouped into infrastructure management
(SVP Internal Audit), who is appointed and dismissed
(production equipment), products and services as well
by the President Director with the approval of the Board
as supporting operations, including the identification of
of Commissioners. As of December 31, 2015, the Internal
Group Financial Reporting Risk/GFRR, the preparation of
Audit SVP is held by Harry Suseno Hadisoebroto.
business processes of subsidiaries and HR management.
This internal consulting activity is more of a preventive
solution to anticipate that business operations continue in
the right direction and heed applicable regulations.
brief profile of the head of
internal audit unit
Harry Suseno Hadisoebroto served as Internal Audit SVP
since July 1, 2015 and was appointed by a Resolution
As part of the Company with a high commitment to
signed by the President Director. Since 1992 has worked at
the success of GCG, IA has an important role in the
Telkom and its subsidiaries and has 11 years of professional
whistleblower mechanism which
is the purview of
experience in various positions at management level. He
the Audit Committee and the Executive Investigative
previously served as Internal Audit Telkomsel VP since
Committee (EIC), where the head of IA is appointed
May 1, 2014 until June 30, 2015. He has been Internal Audit
as secretary of the EIC. The whistleblower mechanism
VP at Telkom from April 1, 2011 until April 30, 2014.
functions
to accommodate every
‘complaints’ by
employees to be forwarded to the management. In turn,
if the Audit Committee and EIC deem that the complaint
needs to be investigated further, IA will take the role to
number of personnel of internal
audit unit
At the end of 2015, the number of personnel in the IA unit
follow-up as part of the duties of audit.
numbered 49 people. Based education, the personnel of
the Internal Audit are as follows:
The results of such activities are reported to the President
Director with copies forwarded to the Audit Committee
and then the results will be communicated to the audit
object to be followed up and rectified.
To ensure that the object of the audit has provided a
sufficient response on the results of the audit and internal
consultation, it is necessary to conduct further monitoring.
Follow-ups on the ground are conducted by the audit
Education
High School
D2
D3
S1 (Undergraduate)
S2 (Graduate)
object which is then monitored by the IA. In this regard,
Total
Number
1
3
1
30
14
49
%
2.0
6.2
2.0
61.2
28.6
100
a follow-up is limited to areas of significant business
processes with a mutually-agreed settlement time.
independenCe internal audit unit
As set forth in the applicable capital market regulations,
namely Bapepam-LK regulation No. XI.2.7, the Internal
Audit is an independent unit from other work units and
qualifiCation/professional
CertifiCation
To maintain and improve auditors who have sufficient
competence both in quality and quantity to be able to
act in accordance with the scope of activities of IA in
guarding the business development of the Company, IA
continues to strive in:
1. involve the IA auditor in training, seminars and
workshops of a technical nature; and
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA 2. engage the IA auditor in both local and international certified sustainable learning.
Currently, the number of auditors who already have national certification is eight people with Qualified Internal Auditor
(“QIA”) certificates and six people with international certificates, one person with a Certified Fraud Examiner (“CFE”)
certificate, two people with Certified Information Systems Audit (“CISA”) certificates, one person with a Certified Risk
Management Audit (“CRMA”) certificate, one person with a Certified Management Audit (“CMA”) certificate, and one
person a Certified Behavior Consultant (“CBC”) certificate.
Currently the number of auditors who have been certified auditor both nationally and internationally, with details as
follows :
Type Certificate
Qualified Internal Auditor (QIA)
Certified Fraud Examiner (CFE)
Certified Information System Audit (CISA)
Certified Management Accountant (CMA)
Certified Behavior Consultant (CBC)
ISO 27001 Lead Auditor
Amount
8
1
2
2
1
5
During 2015, the internal audit unit actively participate
Enterprises, universities and private companies. FKSPI
its auditor in the preparation of international certification
routinely organizes seminars and workshops to improve
such as Certified Information System Audit (“CISA”) and
the competence of its members.
Certified Internal Auditor (“CIA”).
telKom internal audit aCtive in
professional orGaniZations
Telkom Internal Audit is actively involved in the activities
As many as nine (9) Telkom Internal Audit personnel
became members of the Institute of Internal Auditors
(IIA). This membership, as part of the Telkom Internal
Audit, is always updated with scientific developments in
of the Communication Forum of Internal Control Unit
the field of auditing and assurance.
(“FKSPI”) Indonesia. This forum was formed to be
the vehicle for improving the quality of supervision
and establish professional auditors with international
audit and ConsultinG aCtivity in 2015
In accordance with the Internal Audit Annual Work Plan,
standards. FKSPI members consist of State-Owned
in the period 2015, the IA Unit implemented 45 audit
Enterprises
Internal Audit Unit, Regionally-Owned
objects and consultations.
Sub Unit
Enterprise Management Audit
Infrastructure & Operation Audit
Support & Subsidiary Audit
Total IA
Q-I
4
5
5
14
Q-II
Q-III
Q-IV
year 2015
6
4
3
13
3
2
2
7
7
2
2
11
20
13
12
45
Until December 31, 2015, Internal Audit has completed 45 Audit/consultations and produced 481 recommendations,
with details as follows:
Sub Unit
Enterprise Management Audit
Infrastructure & Operation Audit
Support & Subsidiary Audit
Total IA
Number of
Recommendations
Follow-up Status
Closed
Open
140
252
89
481
72
207
74
353
68
45
15
128
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES internal audit traininG
The training followed by Internal Audit in 2015 is as follows:
Program
Sertification Training
Operational Training
Competency Enhancement Training
eXternal audit
Number of Participant
Number of Day
2
52
42
12
19
31
In line with existing procedures and taking into consideration
client’s financial statements can only be done by a public
the
independence and qualifications of
independent
accounting firm for as long as 6 (six) financial years in a
auditors, at our AGMS on April 17, 2015 we appointed KAP
row and by an accountant no later than 3 (three) fiscal
Purwantono, Suherman & Surja (a member firm of Ernst
years in a row. KAP Purwantono, Suherman & Surja is a
& young Global Limited) a registered KAP with OJK, to
public accountant firm since 2012.
perform the audit on our Consolidated Financial Statements
for the fiscal year ended December 31, 2015 and on the
In 2015, company’s public accountant firm is Purwantono,
effectiveness of internal control on Financial Reporting as of
Sungkoro & Surja (previously Purwantono, Suherman &
December 31, 2015. The fee for the audit on the Consolidated
Financial Statements for fiscal year 2015 was agreed at
Rp34.4 billion (excluding VAT).
Surja). Accountant who signed the Independent Auditors’
Report for Fiscal year 2015 was Hari Purwantono. KAP
Purwantono, Sungkoro & Surja was also appointed to
audit the Effectiveness of Internal Control over Financial
Based on Bapepam-LK No.VIII. A. 2. on the Independence
Reporting financial year of 2015 and audit the use of
of Accountant Providing Audit Services in Capital Markets
funds of the Partnership and Community Development
noted that the provision of services of general audit of the
(“PKBL”) in fiscal year 2015.
Public accounting firm that has audited Financial Statement of the Company for the last 5 years, are as follows:
years
Public Accounting Firm
Public Accountant
2015
2014
2013
2012
2011
Purwantono, Sungkoro & Surja
Purwantono, Suherman & Surja
Purwantono, Suherman & Surja
Purwantono, Suherman & Surja
Drs.Hari Purwantono
Drs.Hari Purwantono
Drs.Hari Purwantono
Drs.Hari Purwantono
Tanudiredja, Wibisana & Rekan
Chrisna A.Wardhana, CPA
Fee
(Rp million)
34,400
31,500
28,240
26,619
40,503
fees and services of the external auditor
The following table summarizes the fees for audit service in 2013, 2014 and 2015:
Audit Fee
All Other Fees
For years Ended on Desember 31,
2013
2014
2015
28,240
340
(Rp million)
31,500
370
39,943
400
audit by others eXternal audit institutions
In 2015, in addition to the audit by the Public Accounting Firm (KAP), Auditors from the Audit Board of the Republic
of Indonesia (BPK) audited Telkom’s Income and Expenses. This audit further increased the “control awareness” of
Telkom’s management in the procurement process of goods and services.
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
risK manaGement
implementation of risK manaGement
Risk management is important in the communication
business because it has a wide scope that requires a
large investment with a high degree of competition.
Implementation of the risk management system is further
strengthened by the Regulation of the Minister of State-
Owned Enterprises No. 1 of 2011 which requires Telkom to
conduct risk management.
In its implementation, risk management is done in a
systematic, structured and applied in all parts of the
Company. Risk management is applied to minimize
all possible risks that could negatively impact on the
achievement of Company targets.
risk management development milestone
Since 2006, we have applied a risk management framework
that refers to the COSO Enterprise Risk Management
(ERM) as stipulated in Decision of the Board of Directors
Number. 16 of 2006 on Corporate Risk Management
(Telkom Risk Management). The policy was amended by
the Board of Directors’ Regulation No.PD.614.00/r.00/
HK.200/COP-D0030000/2015 of September 30, 2015
on Company Risk Management (Telkom Enterprise Risk
Management).
The implementation of risk management at Telkom in
2006 started with the establishment of the Legal Unit
of Risk Management & Compliance (RMLC) under the
coordination of the Executive Vice President (EVP).
Furthermore, the Directorate of Compliance & Risk
Management (CRM), under the control of the Director
of the CRM, was created in 2007. With an improved level
of awareness of risk management and greater business
challenges in 2013, the function of risk management
was formed by the Department of Compliance,
Risk Management and General Affairs (CRMGA),
under the responsibility of the Head of CRMGA, to
manage governance. Since January 28, 2015, the sub
directorate of Risk & Process Management belonged
in the Finance Directorate.
The history of Risk Management in Telkom in 2006 to
2015 has led the company to a level in which risk has been
taken into consideration in making strategic decisions, in
the implementation of operations, to oversee compliance
as well as in safeguarding the financial reporting process
through the Internal Control Processes and Disclosure
Control Procedures.
Looking ahead, we continue to strive to maintain and
improve the maturity of risk management implementation
with some emphasis as follows:
2015 : Improved implementation of Business Continuity
Management System (BCMS)
2016 : Improved implementation of Revenue Assurance &
Fraud Management System
risk management organizations at the corporate level
Regulation of the Board of Directors No. 202.11/r.01/
HK200/COP-J4000000/2015 dated January 28,
2015 on the TELKOM Group Office Organization, the
organizational structure of Sub Directorate of Risk &
Process Management in the Finance Directorate are
as follows:
VP Risk & Process
Management
AVP Process Strategy
AVP Process Strategy
AVP Process Strategy
risk management policy and framework
Risk Management policy in Telkom refers to Regulation of the Board of Directors Number: PD.614.00/r.00/HK.200/
COP-D0030000/2015 of September 30, 2015 on Company Risk Management (Telkom Enterprise Risk Management)
which replaces the Board of Directors’ Decision No. KD.16/PW000/PRO-IIC/2006 of February 3, 2006 on Company
Risk Management (Telkom Risk Management). As the transition period the Decision of the Board of Directors
No.KD.16/PW 000/PRO-IIC/2006 is still valid in the period of 6 (six) months from the Board of Directors Regulations
No.PD.614.00/r.00/HK.200/COP-D0030000/2015 apply.
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES purpose:
1. Ensure all risks that could interfere with the achievement
d. Risk assessment process
e. Risk response process
of company objectives can be anticipated in advance
f. Control activities process
as well as obtain new opportunities that can support
g. Information / Communication Process
the achievement of Company objectives.
h. Monitoring process
2. Creating a standard framework for Company
Risk Management for a more coordinated and
However, in its implementation, Telkom also pays attention
integrated management.
and integrates the framework with references and other
scope:
1. Enterprise Risk Management implemented at all levels
of the organization covers:
2. Corporation Level.
relevant guidelines, among others:
1. ISO 31000 - Enterprise Risk Management as a
comparison and complementary implementation.
2. ISO 27001 - Information Security Management System
(ISMS) as a reference in the development of risk
3. The unit of work at the Company Office
management to ensure information security in terms
4. Business Unit (Division/Center)
of Confidentiality, Integrity and Availability.
5. Subsidiary.
3. ISO 22301
- Business Continuity Management
System (BCMS) as a reference in ensuring business
The main framework used in risk management at
continuityISO 20000
-
Information Technology
Telkom (COSO ERM Framework) includes three major
components:
1. Company risk management must be able to support
the company’s goals from the following aspects:
Service Management (ITSM) as a reference in ensuring
IT services.
4. ISO 20000
Information Technology Service
Management (ITSM) as a reference in ensuring IT
-
strategic, operational, Reporting and compliance.
services.
2. Enterprise risk management applied at all levels of the
organization within the company includes: Enterprise-
5. Safety and Health Management System (SMK3) based
on Government Regulation No. 50 of 2012 on the
level, Division, Business unit and Subsidiary.
application of SMK3.
3. The implementation of enterprise risk management
6. ISO
18001
- Occupational Health and Safety
consists of eight components which are:
a. Developing the internal environment process
b. Objective setting process
c. Event identification process
Assessment System (OHSAS) as a reference to support
the implementation SMK3.
implementation of risK manaGement poliCy and frameworK
1. efforts to add value to the management of the company
C
I
G
E
S
n
o
TI
A
G
n
I
T
E
C
n
IA
l
p
T
A
R
T
S
R
E
p
o
R
o
p
E
R
m
o
C
internal environment
object setting
event identification
risk assessment
risk response
Control activities
information & Communication
monitoring
B
S
U
U
E
S
B
I
n
E
S
S
S
I
D
I
A
U
R
n
Y
I
T
N
D
T
I
I
V
T
I
Y
S
-
I
L
O
E
N
V
E
L
In line with the basic frameworks (COSO ERM Framework), risk management at Telkom is expected to provide
added value in achieving the objectives of the company, especially in the aspects of: Strategic, Operation, Reporting
and Compliance.
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
strategic aspect:
Risk management attempts to provide added value
• Head of Unit: Unit leaders/Senior Leaders have the
duty and responsibility to implement and supervise
through the implementation of risk management in the
the whole process of company risk management in the
company’s planning process, for example during the
unit he leads.
preparation of the Corporate Strategic Scenario (CSS), as
• All Employees: Have the task and responsibility of
well as in the strategic decision-making process.
effectively and efficiently implementing company
operational aspect:
•
Implementation of Risk Management to protect the
risk management policy according to their roles
and positions.
• Subsidiary: Has the task and responsibility of
Company’s assets will include:
implementing risk management with a framework
• Physical Security Management for
infrastructures
referring to the framework used by PT. Telkom
security
•
IT
Security Management
System
including
3. the process of building and maintaining
Confidentiality, Integrity and Availibility
enterprise risk management (erm)
• Management of Work Health
and Safety
In order to be able to properly run eight components in
Management System
the COSO Framework process, we built and maintained
• Management of Business Continuity Management,
Corporate Risk Management through:
Disaster Recovery Plan and Crisis Management Team
a. Structural aspects to build a supportive internal
• Management of Revenue Assurance and Anti
Fraud Program
Compliance aspect:
• Risk management is strived to provide some added
values through:
environment through:
• Building Commitment and Tone at the Top.
• Laying the foundation of risk management within
the framework of GCG.
• Establish a Risk Management Unit Organization.
• Development of Policies, Guidelines
for Risk
• Management of compliance of the External Regulations
Acceptance Criteria (RAC), Guidelines for Risk
and Internal Rules
Assessment (Risk & Control Self Assessment/RCSA)
• Management of compliance of SOX Provisions
and Governance.
through the design and implementation of adequate
• Development of Competence in the Field of
Internal Control
• Reporting Aspect:
Risk Management.
• Provision of adequate Tools and Systems.
• Risk management strives to provide added value to
b. Operational aspects are focused on:
the process of setting financial reporting disclosure
• Guarding the implementation of risk assessment at
controls through Disclosure Control Procedure (DCP).
the Corporate, Business Unit and Subsidiary as well
as preparation of adequate mitigation plans.
2. enterprise risk management (erm) Governance
Telkom realizes that risk management is an integral part
• Development of risk assessment methodologies for
specific functions by combining the implementation
of Good Corporate Governance (GCG) to ensure business
of the COSO ERM Framework with reference to
continuity. Governance of risk management referring to
standards or other guidelines
the Company Risk Management Policy includes:
• Aspects of maintenance that focuses on the
• Board of Directors: In the implementation of risk
process of information, communication, review and
management policies, acting and responsible for
continuous improvement including:
establishing policies related to the management
• Guarding the implementation of the review,
risk and ensures that company risk management is
monitoring and risk reporting system.
effectively implemented through all the company’s
• Coordination of
the Audit
Implementation
management processes.
Enterprise Risk Management.
• Risk Committee: Acting and responsible for setting
Policies, reviews and recommendations on company
risks and provide feedback or guidance for every
person in charge of company risk.
• Corporate Risk Management Unit: Acting and
responsible for coordinating the implementation of the
company’s risk management policy.
•
Internal Audit Unit: Internal Audit function plays acts
and is responsible for providing independent opinion
to the Board of Directors, Risk Committee and Risk
Management unit of the company.
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES • Maintain Continuity Competency Development.
6. assessment of
the effectiveness of
the
• Maintain consistency of communication
and socialization.
implementation of risk management
the effectiveness of
Assessing
risk management
• Developing a mechanism for assessing the
implementation is done through the evaluation process,
effectiveness of the implementation of
including:
Risk Management.
• Through Evaluation/one-on-one discussion with
4. development of risk management Competence
In 2015, we have carried out the development of risk
• Through Workshop-sharing
implementation and
development of ERM with subsidiaries as needed
management competencies, including:
• Through the Implementation of Risk Management
business units as needed.
No. Type of Training
Internal Control over Financial
Reporting (ICFR)
Date
June 2015
Certified Lead Auditor ISO 22301
Business Continuity Management
System
September
2015
Hedging
Emergency Flood Evacuation
Response Simulation
Internal Auditor Business
Continuity Management
Certified Risk Associate
September
2015
October 2015
October 2015
December
2015
1
2
3
4
5
6
Besides
through Classical Training,
competence
development is also done through socialization as well
as related Workshops on Risk Management in the Office
Division environment and its subsidiaries.
Audit program as needed
• Through Evaluation with
the Risk Committee,
Compliance and Revenue Assurance at BoD level as
needed
• Through Evaluation with the Planning and Risk
Evaluation Monitoring Committee (PREMC) as needed
7. sharing session and recognition of external
parties
In 2015, Telkom received a visit from external parties for
an implementation of Risk Management, Internal Control,
Process Management, Good Corporate Governance and
Management of Insurance sharing session, among others,
from:
PT Semen Indonesia
: January 11, 2015
PT Perkebunan Nusantara IX : February 15, 2015
Perum BULOG
: March 11, 2015
Pembangkit Jawa Bali
: May 19, 2015
PERTAMINA Patra Niaga
: August 04, 2015
PT PLN
: September 11, 2015
5. tools usage/information system
To perform the function of Risk Management, Telkom has
Other than the implementation of Risk Management in
2015, Telkom received recognition or awards from external
provided the supporting infrastructure using applications
parties, namely:
(tools) / information systems, among others:
a. Generic Tools Enterprise Risk Management Online
(ERM Online) that is used by the entire unit for
No
External
institution
Type of Award
1
PT SGS
Indonesia
Integrated Management System
for Infrastructure management
including:
•ISO 9001:2008 Certificate -
Quality Management System
•ISO 27001:2013 Certificate
- Information Security
Management System
•ISO 22301:2012 Certificate -
Business Continuity Management
System
management of Risk Assessment
b. Specific Tools for specific risk management objectives,
for example:
• Fraud Management System (FRAMES) Application
that is used for an early detection system of
potential Customer Fraud
•
i-Library application which is managed by the
Division Network of Broadband and is used for the
management of the documentation system, namely
the Integrated Management System
• SMK 3 Online application managed by the
Security and Safety Unit for the Health and Safety
documentation management.
• Security & Safety Application managed by the
Security & Safety Unit to monitor the management
of Physical Security
• Telkomcare application for coordinating the Crisis
Management Team
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
risK faCtors
a. risks related to indonesia
1. political and social risks
Current political and social events in Indonesia may
adversely affect our business
Since 1998, Indonesia has experienced a process of
democratic change, resulting in political and social
events that have highlighted the unpredictable
nature of Indonesia’s changing political landscape.
In 1999, Indonesia conducted its first free elections
for parliament and president. Indonesia also has
many political parties, without any one party holding
a clear majority. Due to these factors, Indonesia has,
from time to time, experienced political instability,
as well as general social and civil unrest. For
example, since 2000, thousands of Indonesians
have participated in demonstrations in Jakarta and
other Indonesian cities both for and against former
President Abdurahman Wahid, former President
Megawati, and former President Susilo Bambang
yudhoyono as well as in response to specific issues,
including fuel subsidy reductions, privatization
of
state
assets,
anti-corruption measures,
decentralization and provincial autonomy and the
American-led military campaigns in Afghanistan
and Iraq. Although these demonstrations were
generally peaceful, some turned violent.
Indonesia announced in November 2014, and
implemented with effect from January 1, 2015,
a fixed diesel subsidy of Rp1,000 per liter and
scrapped the gasoline subsidy. Although the
implementation did not result in any significant
violence or political instability, the announcement
and
implementation also coincided with a
period where crude oil prices had dropped very
significantly from 2014. There can be no assurance
that future increases in crude oil and fuel prices will
not result in political and social instability.
Separatist movements and clashes between
religious and ethnic groups have also resulted in
social and civil unrest in parts of Indonesia, such as
Aceh in the past and in Papua currently, where there
have been clashes between supporters of those
separatist movements and the Indonesian military,
including continued activity in Papua, by separatist
rebels that has led to violent incidents. There have
also been inter-ethnic conflicts, for example in
Kalimantan, as well as inter-religious conflict such
as in Maluku and Poso.
Labor issues have also come to the fore in Indonesia.
In 2003, the Government enacted a new labor law
that gave employees greater protections. Occasional
efforts to reduce these protections have prompted
an upsurge in public protests as workers responded
to policies that they deemed unfavorable.
President Joko Widodo won the
Indonesian
presidential elections which took place in July 2014,
and was sworn in as President of the Republic of
Indonesia on October 20, 2014. Although the April
2009, July 2009 and July 2014 elections were
conducted in a peaceful manner, President Joko
Widodo’s governing coalition currently holds a
minority of seats in parliament. In addition, the
relatively closely fought 2014 presidential election,
the challenge from the losing candidate in the
2014 election and the delay of the conclusion of
the election result, as well as political campaigns
in Indonesia, may be indicative of the degree of
political and social division in Indonesia.
There can be no assurance that social and civil
disturbances will not occur in the future and on
a wider scale, or that any such disturbances will
not, directly or indirectly, materially and adversely
affect our business, financial condition, results of
operations and prospects.
Terrorist activities in Indonesia could destabilize
Indonesia, which would adversely affect our business,
financial condition and results of operations, and the
market price of our securities
There have been a number of terrorist incidents
in Indonesia, including the May 2005 bombing in
Central Sulawesi, the Bali bombings in October 2002
and 2005 and the bombings at the JW Marriot and
Ritz Carlton hotels in Jakarta in July 2009, which
resulted in deaths and injuries. On January 14, 2016,
several coordinated bombings and gun shootings
occurred in Jalan Thamrin, Jakarta, resulting in a
number of deaths and injuries.
Although
the Government has
successfully
countered some terrorist activities in recent years
and arrested several of those suspected of being
involved
in these
incidents, terrorist
incidents
may continue and, if serious or widespread, might
have a material adverse effect on investment
and confidence in, and the performance of, the
Indonesian economy and may also have a material
adverse effect on our business, financial condition,
results of operations and prospects and the market
price of our securities.
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 2. macro economic risks
rate stood at Rp13,795 per US Dollar compared to
Negative changes in global, regional or Indonesian
Rp12,440 per US Dollar as of December 31, 2014.
economic activity could adversely affect our
business
To the extent that the Indonesian Rupiah depreciates
Changes in the Indonesian, regional and global
further from the exchange rate as of December 2014,
economies can affect our performance. Two
our US Dollar-denominated obligations under our
significant events in the past that impacted Indonesia’s
accounts payable and procurements payable, as
economy were the Asian economic crisis of 1997 and
well as payments for foreign currency-denominated
the global economic crisis which started in 2008. The
loans payable and bonds payable, would increase in
1997 crisis was characterized in Indonesia by, among
Indonesian Rupiah terms. A depreciation of the Rupiah
others, currency depreciation, a significant decline in
would also increase the Rupiah cost of our capital
real gross domestic product, high interest rates, social
expenditures as most of our capital expenditures are
unrest and extraordinary political developments.
priced in or with reference to foreign currencies, mainly
While the global economic crisis that arose from the
US Dollars and Euros, while a substantial majority of
subprime mortgage crisis in the US did not affect
our revenues are in Rupiah. Such depreciation of the
Indonesia’s economy as severely as in 1997, it still
Indonesian Rupiah would result in losses on foreign
put Indonesia’s economy under pressure. The global
exchange translation, significantly affect our total
financial markets have also experienced volatility as
expenses and net income and reduce the US Dollar
a result of expectations relating to monetary and
interest rate policies of the United States, concerns
amounts of dividends received by holders of our ADSs.
We can give no assurances that we will be able to
over the debt crisis in the Eurozone, and concerns
control or manage our exchange rate risk successfully
over China’s economic health. Uncertainty over the
in the future or that we will not be adversely affected
outcome of the Eurozone governments’ financial
by our exposure to exchange rate risk.
support programs and worries about sovereign
finances generally are ongoing. If the crisis becomes
In addition, while the Indonesian Rupiah has generally
protracted, we can provide no assurance that it will
been freely convertible and transferable, from time to
not have a material and adverse effect on Indonesia’s
time, Bank Indonesia has intervened in the currency
economic growth and consequently on our business.
exchange markets in furtherance of its policies,
either by selling Indonesian Rupiah or by using its
Adverse economic conditions could result in less
foreign currency reserves to purchase Indonesian
business activity, less disposable income available
Rupiah. We can give no assurances that the current
for consumers to spend and reduced consumer
floating exchange rate policy of Bank Indonesia will
purchasing power, which may reduce demand for
not be modified or that the Government will take
communication services, including our services,
additional action to stabilize, maintain or increase
which in turn would have an adverse effect on our
the Indonesian Rupiah’s value, or that any of these
business, financial condition, results of operations
actions, if taken, will be successful. Modification
and prospects. There is no assurance that there will
of the current floating exchange rate policy could
not be a recurrence of economic instability in future,
result
in significantly higher domestic
interest
or that, should it occur, it will not have an impact on
rates,
liquidity shortages, capital or exchange
the performance of our business.
controls or the withholding of additional financial
assistance by multinational lenders. This could result
Fluctuations in the value of the Indonesian Rupiah
in a reduction of economic activity, an economic
may materially and adversely affect us
recession, loan defaults or declining subscriber
Our functional currency is the Rupiah. One of the
usage of our services, and as a result, we may also
most important effects of the Asian economic crisis
face difficulties in funding our capital expenditures
that affected Indonesia was the depreciation and
and in implementing our business strategy. Any of
volatility in the value of the Indonesian Rupiah as
the foregoing consequences could have a material
measured against other currencies, such as the US
adverse effect on our business, financial condition,
Dollar. The Rupiah continues to experience significant
results of operations and prospects.
volatility. From 2011 to 2015, the Indonesian Rupiah
per US Dollar exchange rate ranged from a high of
Rp8,460 per US Dollar to a low of Rp14,728 per US
Downgrades of credit ratings of the Government or
Indonesian companies could adversely affect our
Dollar. As a result, we recorded foreign exchange
business
losses of Rp249 billion in 2013, Rp14 billion in 2014
As of the date of this Annual Report, Indonesia’s
and Rp46 billion in 2015. As of December 31, 2015,
sovereign foreign currency long-term debt was
the Indonesian Rupiah per US Dollar exchange
rated “Baa3” by Moody’s, “BB+” by Standard &
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA Poor’s and “BBB-” by Fitch Ratings. Indonesia’s
Although we have
implemented a Business
short-term foreign currency debt is rated “B” by
Continuity Plan (“BCP”) and a Disaster Recovery
Standard & Poor’s and “F3” by Fitch Ratings.
Plan (“DRP”), and test these regularly and we
have insured our assets to protect from any losses
We can give no assurances that Moody’s, Standard
attributable to natural disasters or other phenomena
& Poor’s or Fitch Ratings, will not change or
beyond our control, there is no assurance that the
downgrade the credit ratings of Indonesia. Any such
insurance coverage will be sufficient to cover the
downgrade could have an adverse impact on liquidity
potential losses, that the premium payable for these
in the Indonesian financial markets, the ability of the
insurance policies upon renewal will not increase
Government and Indonesian companies, including
substantially in the future, or that natural disasters
us, to raise additional financing and the interest
would not significantly disrupt our operations.
rates and other commercial terms at which such
additional financing is available. Interest rates on
We cannot assure you that future natural disaster
our floating rate Rupiah-denominated debt would
will not have a significant impact on us, or Indonesia
also likely increase. Such events could have material
or its economy. A significant earthquake, other
adverse effects on our business, financial condition,
geological disturbance or weather-related natural
results of operations, prospects and/or the market
disaster in any of Indonesia’s more populated
price of our securities.
3. disaster risks
cities and financial centers could severely disrupt
the Indonesian economy and undermine investor
thereby materially and adversely
confidence,
Indonesia is vulnerable to natural disasters and
affecting our business, financial condition, results of
events beyond our control, which could adversely
operations and prospects.
affect our business and operating results
Many parts of Indonesia, including areas where
Our operations may be adversely affected by an
we operate, are prone to natural disasters such as
outbreak of an infectious disease, such as avian
floods, lightning strikes, typhoons, earthquakes,
influenza, Influenza A (H1N1) virus or other epidemics
tsunamis, volcanic eruptions, fires, droughts, power
An outbreak of an infectious disease such as avian
outages and other events beyond our control.
influenza, Influenza A (H1N1) or a similar epidemic,
The Indonesian archipelago is one of the most
or the measures taken by the Governments of
volcanically active regions in the world as it is located
affected countries, including Indonesia, against
in the convergence zone of three major lithospheric
such an outbreak, could severely disrupt the
plates. It is subject to significant seismic activity
Indonesian and other economies and undermine
that can lead to destructive earthquakes, tsunamis
investor confidence,
thereby materially and
or tidal waves. Flash floods and more widespread
adversely affecting our financial condition or
flooding also occur regularly during the rainy
results of operations and the market value of
season from November to April. Cities, especially
its securities. Moreover, our operations could be
Jakarta, are frequently subject to severe localized
materially disrupted if our employees remained
flooding which can result in major disruption and
at home and away from our principal places of
occasionally, fatalities. Landslides regularly occur
business for extended period of time, which would
in rural areas during the wet season. From time
have a material and adverse effect on our financial
to time, natural disasters have killed, affected or
condition or results of operations and the market
displaced large numbers of people and damaged
value of its securities.
our equipment. These events in the past, and may
in the future, disrupt our business activities, cause
4. other risks
damage to equipment and adversely affect our
Indonesian Corporate Disclosure Standards differ in
financial performance and profit.
significant respects from those applicable in other
For example, on September 2, 2009, an earthquake
As a company whose shares are listed on the
countries, including the United States
in West Java caused damage to our assets. On
September 30, 2009, an earthquake in West Sumatra
disrupted the provision of telecommunications
services in several locations. Although our Crisis
Management Team
in cooperation with our
employees and partners was able to restore services
quickly, the earthquake caused severe damage to
our assets.
Indonesia Stock Exchange (“IDX”) and the New
york Stock Exchange (“NySE”), we are subject to
regulatory and exchange corporate governance
and reporting requirements in multiple jurisdictions.
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES There may be less publicly-available information
We are incorporated in Indonesia and it may not be
about Indonesian public companies, including us,
possible for investors to effect service of process or
than is regularly disclosed by public companies in
enforce judgments, on us within the United States
countries with more mature securities markets. As
or to enforce judgments of a foreign court against
a result, investors may not have access to the same
us in Indonesia
level and type of disclosure as that available in other
countries, and comparisons with other companies in
We are a limited liability company incorporated
other countries may not be possible in all respects.
in Indonesia, operating within the framework of
Indonesian laws relating to Indonesian companies
Our financial results are reported to the OJK (as the
with limited liability, and all of our significant
successor to Bapepam-LK) in conformity with IFAS,
assets are
located
in
Indonesia.
In addition,
which differs in certain significant respects from IFRS,
our Commissioners and our Directors reside in
and we distribute dividends based on profit for the
Indonesia and a substantial portion of the assets of
year attributable to owners of the parent company
such persons are located outside the United States.
and net income per share determined in reliance on
As a result, it may be difficult for investors to effect
IFAS
service of process, or enforce judgments on us or
such persons within the US, or to enforce against
In accordance with the regulations of OJK and the
us or such persons in the US, judgments obtained
IDX, we are required to report our financial results to
the OJK in conformity with IFAS. We have provided
in US courts.
to the OJK our financial result for the financial year
We have been advised by Hadiputranto, Hadinoto
ended December 31, 2015, on March 3, 2016, which
& Partners, our Indonesian legal advisor, that
we furnished to the SEC on a Form 6-K dated March
judgments of US courts,
including
judgments
7, 2016, which contains our audited Consolidated
predicated upon the civil liability provisions of the
Financial Statements as of December 31, 2015 and
US federal securities laws or the securities laws
for the year then ended and prepared in conformity
of any state within the US, are not enforceable in
with IFAS. IFAS differs in certain significant respects
Indonesian courts, although such judgments could
from IFRS, and, as a result, there are differences
be admissible as non-conclusive evidence in a
between our financial results as reported under IFAS
proceeding on the underlying claim in an Indonesian
and IFRS, including profit for the year attributable
court. They have also advised that there is doubt as
to owners of the parent company and net income
to whether Indonesian courts will enter judgments
per share. We distribute dividends based on profit
in original actions brought in Indonesian courts
for the year attributable to owners of the parent
predicated solely upon the civil liability provisions
company and net income per share determined in
of the US federal securities laws or the securities
reliance on IFAS.
laws of any state within the US. As a result, the
claimant would be required to pursue claims against
Based on IFAS financial statements, our profit
us or such persons in Indonesian courts.
for the year attributable to owners of the parent
company would be Rp14,471 billion and Rp15,489
Our controlling shareholder’s interest may differ
billion for 2014 and 2015, respectively and our net
from those of our other shareholders
income per share would be Rp148.13 and Rp157.77
for 2014 and 2015, respectively. Dividends declared
The Government has a controlling stake of 52.55%
per share were Rp89.46 for fiscal year 2014. The
of our issued and outstanding shares of common
dividends declare per share for the year 2015 will
stock and the ability to determine the outcome of all
be decided at the 2016 AGMS, scheduled for April
actions requiring the approval of the shareholders.
The Government also holds our one Dwiwarna
Share, which has special voting rights and veto
rights over certain matters, including the election
and removal of our Directors and Commissioners. It
22, 2016.
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA may also use its powers as majority shareholder or
traffic is routed through the PSTN. We also depend
under the Dwiwarna Share to cause us to issue new
on access to an internet and broadband network
shares, amend our Articles of Association or bring
and a cellular network. Our integrated network
about actions to merge or dissolve us, increase or
includes a copper access network, fiber optic access
decrease our authorized capital or reduce our issued
network, BTSs, switching equipment, optical and
capital, or veto any of these actions. One or more
radio transmission equipment, an IP core network,
of these may result in the delisting of our securities
satellite and application servers.
from certain exchanges. Further, through the MoCI,
the Government exercises regulatory power over
In addition, we also rely on interconnection to the
the Indonesian telecommunications industry.
networks of other telecommunications operators
to carry calls and data from our subscribers to the
As of December 31, 2015, the Government
subscribers of operators both within Indonesia and
had a 14.3% equity stake in PT Indosat Tbk
overseas. We also depend on certain technologically
(“Indosat”), which competes with us in fixed IDD
sophisticated management information systems
telecommunications services and cellular services.
and other systems, such as our customer billing
The Government’s stake in Indosat includes a Series
system, to enable us to conduct our operations. Our
A Dwiwarna share which has special voting rights
network, including our information systems, IT and
and veto rights over certain strategic matters under
infrastructure and the networks of other operators
Indosat’s Articles of Association, including decisions
on dissolution, liquidation and bankruptcy, and also
with whom our subscribers are interconnected, are
vulnerable to damage or interruptions in operation
permits the Government to nominate one Director
from a variety of sources including earthquake,
to its Board of Directors and one Commissioner
fire, flood, power loss, equipment failure, network
to its Board of Commissioners. There may thus be
software flaws, transmission cable disruption or
instances where the Government’s interests will
similar events.
conflict with ours. There is no assurance that the
Government will not direct opportunities to Indosat
Although we have a comprehensive business
or favor Indosat when exercising regulatory power
continuity plan and disaster recovery plan which we
over the Indonesian telecommunications industry. If
test and strive to improve, we cannot guarantee that
the Government were to give priority to Indosat’s
the implementation of such plans will be completely
business over ours or to expand its stake in Indosat,
or partially successful should any portion of network
our business, financial condition, and results of
be severely damaged or interrupted. Any failure that
operations and prospects could be materially and
results in an interruption of our operations or of the
adversely affected.
b. risks related to our business
1. operational risks
A material failure in the continuing operations of
provision of any service, whether from operational
disruption, natural disaster or otherwise, could
adversely affect our business, financial condition,
results of operations and prospects.
our network, certain key systems, gateways to our
Our networks, face both potential physical and
network or the networks of other network operators
cyber security threats, such as theft, vandalism and
could adversely affect our business, financial
acts intended to disrupt operations, which could
condition, results of operations and prospects
adversely affect our operating results
We depend to a significant degree on the
Our networks and equipment, particularly our
uninterrupted operation of our network to provide
wireline access network, face both potential physical
our services. For example, we depend on access to
and cyber security threats. Physical threats include
our fixed wireline network (“PSTN”) for the operation
theft and vandalism of our equipment and organized
of our fixed line network and the termination and
attacks against key
infrastructure
intended to
origination of cellular telephone calls to and from
disrupt operations. In addition, telecommunications
fixed line telephones, and a significant portion of
companies worldwide
face
increasing cyber
our cellular and international long-distance call
security threats as businesses become increasingly
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES dependent on telecommunications and computer
A revenue leakage might occur due to internal
networks and adopt cloud computing technologies.
weaknesses or external factors and if this happened,
Cyber security threats include gaining unauthorized
it could have an adverse effect on our operating
access to our systems or inserting computer
results
viruses or malicious software
in our systems
to misappropriate consumer data and other
A revenue
leakage
is a generic risk for all
sensitive information, corrupt our data or disrupt
telecommunications operators. We may
face
our operations. Unauthorized access may also
revenue
leakage problems or problems with
be gained through traditional means such as the
collecting all the revenues to which we may be
theft of laptop computers, portable data devices
entitled, due to the possibility of weaknesses at the
and mobile phones and intelligence gathering on
transactional level, delay in transaction processing,
employees with access.
dishonest customers or other factors.
Although we have not experienced any material
We have taken some preventive measures against
successful cyber attacks to date that have affected
the possibility of revenue leakage by increasing
our operations, our network and our website are
control functions in all of our existing business
frequently targeted by cyber attacks. A successful
process, implementing revenue assurance methods,
cyber attack may lead us to incur substantial
employing adequate policies and procedures as well
costs to repair damage or restore data, implement
substantial organizational changes and training to
as implementing information systems applications
to minimize revenue leakages. Nonetheless, there
prevent future similar attacks and lost revenues and
is no assurance that in the future there will be
litigation costs due to misused sensitive information,
no significant revenue leakages or that any such
and cause substantial reputational damage. We
leakages will not have a material adverse affect on
take preventive and remedial measures, including
our operating results.
enhanced cooperation with the police, particularly
in areas prone to criminal activity and regular
New technologies may adversely affect our ability
upgrades of our data security measures. However,
to remain competitive
there is no assurance that our physical and cyber
security measures will be successful. Damage to our
The telecommunications industry is characterized
network, equipment or data and the need to repair
by rapid and significant changes in technology.
such damage resulting from a physical or cyber
We may face
increasing competition due to
attack may materially and adversely affect our
technologies currently under development or
business, financial condition and operating results.
which may be developed in the future. Future
Our networks face potential security threats, such
development or application of new or alternative
as theft or vandalism, which could adversely affect
technologies, services or standards could require
our operating results.
significant changes to our business model, the
development of new products, the provision of
We face a number of risks relating to our internet-
additional services and substantial new investments
related services
by us. New products and services may be expensive
to develop and may result in the introduction of
In addition to cyber security threats, because
additional competitors into the marketplace. We
we provide connections to the internet and host
cannot accurately predict how emerging and future
websites for customers and develop
internet
technological changes will affect our operations or
content and applications, we may be perceived as
the competitiveness of our services. Furthermore,
being associated with the content carried over our
we cannot guarantee that we will be able to
network or displayed on websites that we host. We
effectively integrate new technologies into our
cannot and do not screen all of this content and may
existing business model.
face litigation claims due to a perceived association
with this content. These types of claims can be
For example, due to competition and the increasing
costly to defend, divert management resources and
popularity of mobile cellular platforms, our fixed
attention, and may damage our reputation.
wireless revenues and ARPU had been declining
in recent years. On June 27, 2014, we entered into
a Conditional Business Transfer Agreement with
Telkomsel to transfer parts of our Flexi business,
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA with effect from October 3, 2014, and migrated Flexi
While we currently hold a license to use the
subscribers to Telkomsel. We terminated our Flexi
designated satellite slot, in the event our Telkom-1
service on May 31, 2015.
and Telkom-2 satellites experience
technical
problems or failure, the Government may determine
As part of our continuing development of our TIMES
that we have failed to optimize the existing
business, we continue to seek to develop businesses
slot under our license, which may result in the
through which we also provide content to our
Government withdrawing our license. We cannot
telecommunications subscribers. We do not yet
assure you that we will be able to maintain use of
have substantial experience as a content provider
the designated satellite slot in a manner deemed
therefore we cannot assure you that we will be able
satisfactory by the Government.
to effectively manage the growth of this business.
In anticipation of the growth in demand for satellite
We cannot assure you that our technologies will not
services and to support our business strategy with
become obsolete, or be subjected to competition
regard to providing TIMES services, we signed a
from new technologies in the future, or that we will
contract in 2009 for the procurement of the Telkom-3
be able to acquire new technologies necessary to
Satellite System. However, due to a launch failure in
compete in changed circumstances on commercially
August 2012, the Telkom-3 satellite ended up in an
acceptable terms. Our failure to react to rapid
unusable orbit. Although we had fully insured the
technological changes could adversely affect our
business, financial condition, results of operations
cost of the satellite, the loss of the Telkom-3 satellite
will require us to lease transponder capacity from
and prospects.
a thirdparty provider to fulfill our commitments
to our satellite operations customers, with likely
Our satellites have limited operational life they may
lower margins than we would have received from
be damaged or destroyed during in-orbit operation
the use of Telkom-3 had it been successfully
or suffer launch delays or failures. The loss or reduced
launched. We have entered into a contract for the
performance of our satellites, whether caused by
construction of a replacement satellite, the Telkom-
equipment failure or its license being revoked, may
3S, which is currently planned for launch in late
adversely affect our financial condition, results of
2016, and another contract for the procurement of
operations and ability to provide certain services
a Telkom-4 satellite, which is currently planned for
launch around the end of 2017, as a replacement for
Our Telkom-1 and Telkom-2 satellites have a
Telkom-1. Although the Telkom-1 satellite may still
limited operational life, currently estimated to end
be operational for several years after the end of its
approximately in 2015 and 2020, respectively. A
currently estimated operational lifespan in 2015, if
number of factors affect the operational lives of
there is any delay in the development and launch
satellites, including the quality of their construction,
of the Telkom-3S and/or Telkom-4 satellites, or if
the durability of
their systems, subsystems
the operational life of the Telkom-1 satellite ends
and component parts, on-board fuel reserves,
before the Telkom-3S and/or Telkom-4 satellites are
accuracy of their launch into orbit, exposure to
successfully launched, or damage or failure renders
micrometeorite storms, or other natural events in
our existing satellites unfit for use, we would need
space, collision with orbital debris, or the manner in
to lease additional transponder capacity from a
which the satellite is monitored and operated. We
third party, which would likely increase our costs
currently use satellite transponder capacity on our
of operations. Failure to lease adequate satellite
satellites in connection with many aspects of our
capacity from a thirdparty provider may also result
business, including direct leasing of such capacity
in service interruptions and/or a cessation of our
and routing for our international long-distance and
satellite operations. The termination of our satellite
cellular services.
business could increase expenses associated with
our provision of other telecommunications services,
Moreover, International Telecommunication Union
particularly in the eastern parts of Indonesia which
(“ITU”) regulations specify that a designated
currently rely largely on satellite coverage for
satellite slot has been allocated for Indonesia and
telecommunications services and could adversely
the Government has the right to determine which
party is licensed to use such slot.
affect our business, financial condition and results
of operations.
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 2. financial risks
term indebtedness in currencies other than the
We are exposed to interest rate risk
Indonesian Rupiah, including the US Dollars, to
finance further capital expenditures.
Our debt includes bank borrowings to finance our
operations. Where appropriate, we seek to minimize
The exchange rate of Indonesian Rupiah to the
our interest rate risk exposure by entering into
US Dollar has been highly volatile from time to
interest rate swap contracts to swap floating interest
time in the past. Although we have a financial risk
rates for fixed interest rates over the duration of
management program and a written policy for
certain borrowings. However, our hedging policy
foreign currency risk management which mainly
may not adequately cover our exposure to interest
uses time deposits placements and hedging to
rate fluctuations and this may result in a large interest
cover foreign currency risk exposure for periods
expense and an adverse effect on our business,
ranging from three to twelve months, we can give
financial condition and results of operations.
no assurance that we will be able to manage our
Changes in the economic situation in the United
financial condition or results of operations will not
States,
including
improvement or expectations
be adversely affected by our exposure to exchange
exchange rate risk successfully or that our business,
of improvement in the U.S. economy, may also
rate risk.
have an impact on Southeast Asia and Indonesia.
Expectations of the United States Federal Reserve
tapering its bond buying program on an improving
We may be unable to fund the capital expenditures
in the
needed for us to remain competitive
economy resulted in, among other things, the
telecommunications industry in Indonesia
weakening of equity and bond markets around the
world and a number of Asian currencies including
The delivery of telecommunications services is
the Rupiah since May 2013. In part, in an effort to
capital intensive. In order to be competitive, we
support the Rupiah, in June 2013, Bank Indonesia
must continually expand, modernize and update
began raising its benchmark reference rate from
our telecommunications infrastructure technology,
a record low of 5.75% which was set in February
which involves substantial capital investment. For
2012. The benchmark reference rate rose six times
the years ended December 31, 2013, 2014 and 2015,
between June 2013 and November 2014 to 7.75%
our consolidated capital expenditures totaling
before decreasing to 7.50% in February 2015, 7.25%
Rp24,898 billion, Rp24,661 billion, and Rp26,401
in January 2016, and 7.00% in February 2016. The
billion (US$1,915 million), respectively. Our ability to
increases of Bank Indonesia reference rate in 2013
fund capital expenditures in the future will depend on
and 2014 were followed by increases in the JIBOR
our future operating performance, which is subject
and Bank Indonesia Certificate (“SBI”) interest rates.
to prevailing economic conditions, levels of interest
There can be no assurance that the Bank Indonesia
rates and financial, business and other factors, many
reference rate, JIBOR or SBI rate will not rise again
of which are beyond our control, and upon our
in the future.
ability to obtain additional external financing. We
cannot assure you that additional financing will be
We may not be able to successfully manage our
available to us on commercially acceptable terms,
foreign currency exchange risk
or at all. In addition, we can only incur additional
financing in compliance with the terms of our debt
Changes in exchange rates have affected and may
agreements. Accordingly, we cannot assure you that
continue to affect our financial condition and results
we will have sufficient capital resources to improve
of operations. Most of our debt obligations are
or expand our telecommunications infrastructure
denominated in Indonesian Rupiah and a majority
technology or update our other technologies to
of our capital expenditures are denominated in US
the extent necessary to remain competitive in the
Dollars. Most of our revenues are denominated in
Indonesian telecommunications market. Our failure
Indonesian Rupiah and a portion is denominated
to do so could have a material adverse effect on our
in US Dollars (for example from international
business, financial condition, results of operations
services). We may also incur additional long-
and prospects.
266
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA 3. legal and Compliance risks
Forward-looking statements may not be accurate
If we are found liable for price fixing by the
Indonesian Anti-Monopoly Committee and for
This Annual Report incorporates forward-looking
class action allegations, we may be subjected to
statements that include announcements regarding
substantial liability which could lead to a decrease
our current goals and projections of our operational
in our revenue and affect our business, reputation
performance and future business prospects. The
and profitability
words “believe”, “expect”, “anticipate”, “estimate”,
“project” and similar words identify forward-looking
The Company, Telkomsel and seven other local
statements.
In addition, all statements, other
operators are being investigated by The Commission
than statements that contain historical facts, are
for the Supervision of Business Competition (“Komisi
forward-looking statements. While we believe that
Pengawasan Persaingan Usaha” or “KPPU”) for
the expectations contained in these statements are
allegations of SMS cartel practices. As a result of the
reasonable, we cannot give an assurance that they
investigations on June 17, 2008, KPPU found that
will be realized. These forward-looking statements
the Company, Telkomsel and certain operators had
are subjected to a number of risks and uncertainties,
violated Law No.5 year 1999 article 5 and charged
including changes in the economic, social and
the Company and Telkomsel in the amounts of Rp18
political situation in Indonesia and other risks
billion and Rp25 billion, respectively.
described in “Risk Factors”. All forward-looking
Management believes that there are no such
statements, written or verbal, made by us or by
persons on behalf of us are deemed to be subject
cartel practices that led to a breach of prevailing
to those risks.
regulations. Accordingly,
the Company and
Telkomsel filed an appeal with the Bandung
4. regulation risks
District Court and South Jakarta District Court
We operate in a legal and regulatory environment
on July 14, 2008 and July 11, 2008, respectively.
that
is undergoing significant change. These
changes may result
in
increased competition,
Due to the filing of the case by operators in
which may result in reduced margins and operating
various courts, the KPPU subsequently requested
revenue, among other things. These changes may
the Supreme Court to consolidate the cases into
also directly reduce our margins or reduce the costs
the Central Jakarta District Court. Based on the
of our competitors. These adverse changes resulting
Supreme Court’s decision letter dated April 12, 2011,
from regulation may have a material adverse effect
the Supreme Court appointed the Central Jakarta
on us.
District Court to investigate and resolve the case.
On May 27, 2015, the Central Jakarta District Court
Reformation
in
Indonesian telecommunications
accept the objections of the Company and Telkomsel
regulation initiated by the Government in 1999
to annul the decision (overturned the verdict) that
have, to a certain extent, resulted in the industry’s
has been issued by the Commission. By decision of
liberalization,
including removal of barriers to
the Central Jakarta District Court, the Commission
entry and the promotion of competition. However,
has now filed a cassation to the Supreme Court.
in recent years, the volume and complexity of
There can be no assurance that other subscribers,
of considerable regulatory uncertainty. In addition,
people, or partners will not file similar cases in the
as the legal and regulatory environment of the
future, or that we would not be subject to adverse
Indonesian telecommunications sector continue
verdicts which could have an adverse effect on our
to change, competitors, potentially with greater
business, reputation and profitability.
resources than us, may enter the
Indonesian
regulatory changes has created an environment
267
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES telecommunications sector and compete with
The
entry
of
additional
Indonesian
us
in providing
telecommunications services.
telecommunications operators as providers of
Furthermore, it is impossible to anticipate the
international direct dialing services could adversely
regulatory policies that will be applied to new
affect our international telecommunications services
technologies.
operating margins, market share and results of
We derive substantial revenue from interconnection
operations
services because we have the largest network in
We obtained a license and entered the international
Indonesia and our competitors must pay tariffs to
long-distance service market in 2004 and acquired
connect to our network. As regulated by the MoCI,
a significant market share for IDD services by
although SMS interconnection rates as a result of
the end of 2006. Indosat, one of our primary
ITRB No.60/BRTI/III/2014 and No.125/BRTI/IV/2014
competitors, entered this market prior to us and
increased from Rp23 to Rp24, effective April 2014,
continues to maintain a substantial market share
through December 31, 2016, SMS interconnection
for IDD services. Bakrie Telecom was awarded an
rates have been decreasing prior to that in recent
IDD license in 2009 to provide international long
years and may decrease again in the future.
distance service using the “009” access code.
There is a possibility that other operators will be
The termination of Telkomsel’s premium SMS
granted IDD licenses in the future. The operations of
services from October 2011 as a result of MoCI
No.1/PER/M.KOMINFO/01/2009
Regulation
incumbents and the entrance of new operators into
the international long-distance market, including
resulted in a substantial reduction in our revenues
the VoIP services provided by such operators as well
from these services. These services were resumed
as smartphone-based VoIP applications, continue
by Telkomsel from August 6, 2013 as allowed under
to pose a significant competitive threat to us. We
MoCI Regulation No.21 year of 2013 dated July 26,
cannot assure you that such adverse effects will not
2013, regarding the Operation of Content Provider
continue or that such increased competition will not
Services on Mobile Cellular Network and Local
continue to erode our market share or adversely
Fixed Wireless Network with Limited Mobility, as
affect our fixed
telecommunications services
last amended by MoCI Regulation No.6 of 2015,
operating margins and results of operations.
which replaced MoCI Regulation No.1/PER/M.
KOMINFO/01/2009. However, pursuant to the new
We face risks related to the opening of new long
decree, premium SMS service providers are required
distance access codes
to meet stricter requirements that are more difficult
to comply with. Accordingly we do not expect
In an attempt to liberalize DLD services, the
revenues from premium SMS services to return to
Government
issued regulations assigning each
levels seen prior to October 2011.
provider of DLD services a three-digit access code
to be dialed by customers making DLD calls. In 2005,
In the future, the Government may announce
the MoCI announced that a three-digit access code
or implement other regulatory changes which
for DLD calls will be implemented gradually within
may adversely affect our business or our existing
five years and that it would assign us the “017” DLD
licenses. We cannot assure you that we will be
access code for five major cities, including Jakarta,
able to compete successfully with other domestic
and allow us to progressively extend it to all other
and foreign telecommunications operators, that
area codes. Indosat was assigned “011” as its DLD
regulatory changes will not disproportionately
access code. We were required to open DLD access
reduce our competitors’ costs or disproportionately
codes in all remaining areas on September 27, 2011,
reduce our revenues, or that regulatory changes,
by which date our network was ready to be opened
amendments or
interpretations of current or
up to the three-digit DLD access code in all coded
future laws and regulations promulgated by the
areas throughout Indonesia.
Government will not have a material adverse effect
on our business and operating results.
268
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA However, we believe that the cost for operators
The requirement that we share space on our
who have not upgraded their network infrastructure
telecommunications towers may also disadvantage
to open their networks to the three-digit access
us by requiring that we allow our competitors to
code to do so is significant. To date, other than
expand quickly, particularly in urban areas where
for Balikpapan, neither of the OLOs have made a
new space for additional towers may be difficult
request to us to connect their networks to enable
to obtain. Effective 2011, local Governments are
their DLD access codes to be accessible. As such, we
permitted to assess fees of up to 2.0% of the tax
believe that other than Balikpapan, none of the DLD
assessed value of towers. Although only several
access codes for any of the licensed operators are
local government and assessed such fees and have
usable by customers of other operators. However,
not been material, there can be no assurance that
if they do so in the future, the implementation of
they will not be material in the future.
any new DLD access codes can potentially increase
competition by offering our subscribers more
5. risks related
to our fixed and Cellular
options for DLD services. In addition, the opening
of new DLD access codes is expected to result in
telecommunication business
We may further lose wireline telephone subscribers
increased competition and less cooperation among
and revenues derived from our wireline voice
industry incumbents, which may result in reduced
services may continue to decline, which may
margins and revenues, among other things, all of
materially adversely affect our results of operations,
which may have a material adverse effect on us.
financial condition and prospects
Regulations for the configuration of BTS towers may
Revenues derived
from our wireline voice
delay the set up of new BTS towers or changes in
services have declined during the past several
the placement of existing towers, and may erode
years mainly due to the increasing popularity of
our leadership position by requiring us to share our
mobile voice services and other alternative means
towers with our competitors
of communication. Tariffs for mobile services
have declined in recent years which has further
In 2008 and 2009, the Government issued regulations
accelerated substitution of mobile for wireline voice
relating to the construction, utilization and sharing
services. While the number of our fixed wireline
of BTS towers. Pursuant to the regulations, the
subscribers increased by 3.7% in 2014 and 6.0%
construction of BTS towers requires permits from
in 2015, revenues from our wireline voice services
the local government. The local government has a
decreased by 2.2% in 2014 3.7% in 2015. The
right to determine the placement of the towers, the
percentage of revenues derived from our wireline
location in which the towers can be constructed,
voice services out of our total revenues continued
and also to determine a license fees to build tower
to decrease from 9.4% in 2014 to 7.6% in 2015.
infrastructure. These regulations also oblige us to
allow other telecommunication operators to lease
Since the beginning of 2015, we have taken various
space and utilize our telecommunications towers
steps to stabilize our revenues from wireline voice
without any discrimination.
services by seeking to migrate subscribers to
IndiHome, which bundles consist of consisting
These regulations may adversely affect us in the
primarily of broadband Internet, fixed wireless
allocation, development or expansion plan of our
residential phone (Home Phone), and interactive TV
new BTS towers as setting up of our new towers
(Cable UseeTV) services.
will become more complicated. They may also
adversely affect our existing BTS towers if local
governments require any changes in the placement
of the existing towers.
269
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES However, we cannot assure you that we will be
We have been taking various measures in order
successful in mitigating the adverse impact of the
to mitigate the impact of intense competition in
substitution of mobile voice services and other
our data and internet businesses. However, we
alternative means of communication for wireline
cannot assure you that we will be successful in
voice services or in reducing the rate of decline
mitigating such adverse impact. Competition may
in our revenues generated from wireline voice
further intensify in the future, which may affect
services. Migration from wireline voice services
the financial performance of our data and internet
to mobile services and other alternative means of
services and thus materially and adversely affect
communication may further intensify in the future,
our results of operations, financial condition and
which may affect the financial performance of our
prospects as a whole.
wireline voice services and thus materially and
adversely affect our results of operations, financial
Competition from existing cellular service providers
condition and prospects as a whole.
and new market entrants may adversely affect our
cellular services business
Our data and internet services are facing increasing
competition, and we may experience declining
The Indonesian cellular services business is highly
margins and/or market share from such services as
competitive. Competition among cellular services
such competition intensifies
Our data and internet services are facing increase
providers in Indonesia is based on various factors,
including pricing, network quality and coverage,
features offered and
the range of services,
competition from other data and internet operators
customer service. With the increasing popularity
including as mobile operators. The number of
of smart phones in Indonesia, we believe that
mobile broadband subscribers have increased
data network quality and coverage, including 4G/
with the increasing popularity of smart phones
LTE coverage, will increasingly become an intense
in Indonesia, which adversely affects our market
area of competition. Our cellular services business,
share and revenues from our fixed line data and
operated through our majority-owned subsidiary,
internet services.
Telkomsel, competes primarily against Indosat and
XL Axiata. Several other smaller GSM and CDMA
In addition, with the increasing popularity of smart
operators also provide cellular services in Indonesia,
phones in Indonesia, we expect that 4G/ long term
including PT Hutchison CP Telecommunications
evolution (“LTE”) services will increasingly become
(“Hutchison”), and PT Smartfren Telecom Tbk
an intense area of competition for data and internet
(“Smartfren Telecom”). In addition to current cellular
services, as well as cellular services. In 2014, the
service providers, the MoCI may license additional
Government issued licenses for LTE / 4G 900 MHz
cellular service providers in the future, and such
frequency band for cellular operators and in 2015
new entrants may compete with us.
issued a policy to refarm the1800 MHz frequency
for LTE use. Since our launch of 4G LTE services in
A number of consolidation among operators in
December 2014, as of December 31, 2015, our LTE
Indonesia have occurred in recent years. In March
services covered 14 cities. However, as of such date,
2010, PT Smart Telecom and Mobile-8 announced
a couple of our cellular competitors have 4G LTE
that they signed an agreement to use the same logo
coverage in more cities than us. Further, in 2013,
and brand under the name “smartfren”. On January
the regulator permitted the Wi-Max operators
18, 2011, Mobile-8 acquired PT Smart Telecom, and
to deploy the LTE technology which will further
on April 12, 2011, PT Mobile-8 Telecom Tbk changed
intensify competition in the broadband internet
its name to Smartfren Telecom.
space. Currently, First Media, which is part of the
Lippo Group, is operating LTE/Wi-Max services in
the Greater Jakarta area.
270
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA XL Axiata completed the acquisition of a majority
Expanding our operations internationally exposes
interest in PT Axis Telekom and merged in 2014,
us to a number of risks associated with operating
which resulted in XL Axiata becoming one of
in new jurisdictions for example, our international
the three largest operators and also acquiring
operations could be adversely affected by political
additional frequency allocations to
implement
or social instability and unrest, by regulatory
4G/LTE
technology.
Further
consolidation
changes, such as an increase in taxes applicable
among operators may occur for operators to
to our operations, macroeconomic
instability,
remain competitive, reduce operating costs and
limitations on or controls on the foreign exchange
“rebalance” the broadband mobile frequency that
trade, competition from local operators, difference
require wider frequency bandwidth. The MoCI
in consumer preferences and a lack of expertise in
also supports operator consolidation, through not
the local markets in which we will be in operation.
issuing additional or new licenses for cellular players.
Any of these factors could cause our expected
While operator consolidation may lead to improved
returns from our expansion to be limited and could
conditions
in
the cellular
telecommunication
have a material and adverse effect on our business,
industry, it also present challenges for Telkomsel in
results of operations and financial condition.
maintaining its market position.
C. quantitative and qualitative disclosure about
6. risks related to development of new businesses
We believe that efforts to develop new businesses
other than the telecommunication business such as
market risk
We are exposed to market risks that arise from changes
in foreign exchange rates and interest rates risk, each
digital consumer and enterprise businesses, as well
of which will have an impact on us. We do not generally
as international expansion are necessary to ensure
hedge our long-term liabilities in foreign currencies
continuing business growth. Risks related to new
but hedge our obligations for the current year. As
business development include competition from
of December 31, 2015. assets in foreign currencies
established players, suitability of business model,
reached 8.64% against our liabilities denominated in
competition from disruptive new technologies
foreign currencies. Our exposure to interest rate risk
or business models, the need to acquire new
is managed through a mix of fixed and variable rate
expertise in the new areas of operation, and risks
liabilities and assets, including short-term fixed rate
related to online media which include intellectual
assets. Our exposure to such market risks fluctuated
property, consumer protection and confidentiality
during 2013, 2014, and 2015 as the
Indonesian
of customer data.
economy was affected by changes in the US Dollar-
Rupiah exchange rate and interest rates themselves.
Focusing on international expansion is one of our
We are not able to predict whether such conditions will
strategic business intiatives. In particular, we have
continue during 2016 or thereafter.
started expansion into a number of jurisdictions
in telecommunications or data related areas,
namely Singapore, Hong Kong, Macau, Timor Leste,
Australia, Myanmar, Malaysia, Taiwan, United States
of America, Saudi Arabia. We have also entered into
a conditional sale and purchase agreement in May
2015 to acquire Guam AP Teleguam Holdings, Inc,
the parent company of GTA Teleguam, which has
voice, mobile, fixed broadband and IPTV operations.
The acquisition is subject to regulatory approvals.
271
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
exchange rate information
The following table shows the exchange rate of Indonesia Rupiah to US Dollar based the middle exchange rate which is
calculated based on the Bank Indonesia buying and selling rates for the periodes indicated.
Calender year
at Period End (1)
Average (2)
Low (2)
High (2)
(Rp Per US$1)
2011
2012
2013
2014
2015
September
October
November
December
2016 (through March 28)
January
February
March (through March 28)
Source : Bank Indonesia
9,068
9,670
12,189
12,440
13,795
14,657
13,639
13,840
13,795
13,323
13,846
13,395
13,323
8,779
9,380
10,451
11,878
13,392
14,396
13,796
13,673
13,855
13,537
13,889
13,516
13,170
9,185
9,707
12,270
12,900
14,728
14,728
14,709
13,840
14,076
13,946
13,946
13,757
13,367
8,460
8,892
9,634
11,271
12,444
14,081
13,288
13,461
13,615
13,020
13,835
13,333
13,020
(1) Determined based upon the middle exchange rate announced by Bank Indonesia applicable on the last day for the
period.
(2) Determined based upon the daily middle exchange rate announced by Bank Indonesia during the applicable period.
Under the current exchange rate system, the exchange
On March 28, 2015 the Reuters bid and ask rates were
rate of the Indonesian rupiah is determined by the market,
Rp13,365 and Rp13,370 to US$1.00.
reflecting the interaction of supply and demand in the
market However, Bank Indonesia may take measures to
maintain a stable exchange rate. For the year 2015, the
foreign exchange Controls
Indonesia operates a liberal foreign exchange system
average rate of rupiah to the US Dollar was Rp13,392
that permits the free flow of foreign exchange. Capital
with the lowest and highest rates being Rp14,728 dan
transactions, including remittances of capital, profits,
Rp12,444.
dividends and interest, are free of exchange controls. A
number of regulations, however, have an impact on the
The exchange rates used for conversation of monetary
exchange system. For example, only banks are authorized
assets and liabilities denominated in foreign currencies
to deal in foreign exchange and execute exchange
are the buy and sell rates published by Reuters in 2013,
transactions related to the import and export of goods.
2014 and 2015. The Reuters buy and sell rates, applied
In addition, Indonesian banks (including branches of
respectively to monetary assets and liabilities, were,
foreign banks in Indonesia) are required to report to Bank
Rp12,160 and Rp12,180 to US$1.00 as of December 31,
Indonesia any fund transfers exceeding US$10,000. As a
2013, Rp12,160 and Rp12,180 to US$1.00 as of December
State-Owned Company, and based on the decree of the
31, 2014 and Rp13,780 and Rp13,790 to US$1.00 as of
Head of PKLN, we are required to obtain an approval from
December 31, 2015.
PKLN prior to acquiring foreign commercial loans and
must submit periodical reports to PKLN during the term
The Consolidated Financial Statements are stated
of the loans.
in Rupiah. The convesion of Rupiah amounts into
US Dollar are included solely for the convenience
of readers and have been made using the average
of the market buy and sell rates of Rp13,785 to
US$1.00 published by Reuters on December 31, 2015.
272
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA exchange rate risk
We are exposed to foreign exchange risk on sales,
The information presented in the following tables is based
on assumptions of selling and buying rates in US Dollar as
purchases and borrowings that are denominated in
well as other currencies, which were quoted by Reuters on
foreign currencies, primarily in U.S. dollar and Japanese
December 31, 2015 and applied respectively to monetary
yen. Our exposures to other foreign exchange rates are
assets and liabilities. The buying and selling rates as of
not material.
December 31, 2015 were Rp13,790 and Rp13,780 to US$1,
Increasing risk of foreign currency exchange rates on our
respectively.
obligations are expected to be offset by time deposits
However, we believe these assumptions and the
and receivables in foreign currencies that are equal to at
information described in the following table may be
least 25% of the outstanding current liabilities.
influenced by a number of factors, including a fluctuation
and/or depreciation of the Rupiah in the future.
Outstanding Balance as
of December 31, 2015
Foreign
Currency
(million)
Rp
Equivalent
(Rp billion)
Expected Maturity Date
2016 2017 2018 2019 2020
There
After
Fair Value
(Rp billion)
Exchange Rate Risk
ASSETS
Cash and Cash Equivalents
US Dollar
Japanese yen
Other
Other Current Financial
Assets
US Dollar
Other
Trade Receivables
Related Parties
US Dollar
Third Parties
US Dollar
Other
Other Receivables
US Dollar
LIABILITIES
495
6,813
6,813
11
10
30
1
1
1
143
143
419
14
419
14
2
23
23
104
1,437
1,437
1
0
0
16
16
6
1
6
1
Advances and Other Non-current Assets
US Dollar
LIABILITIES
Trade Payables
Related Parties
US Dollar
Third Parties
US Dollar
Japanese yen
Other
4
54
54
0
6
6
202
2,786
2,786
11
2
1
32
1
32
6,813
1
143
419
14
23
1,437
16
6
1
54
6
2,786
1
32
273
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
Exchange Rate Risk
Outstanding Balance as
of December 31, 2015
Foreign
Currency
(million)
Rp
Equivalent
(Rp billion)
Expected Maturity Date
2016 2017 2018 2019 2020
There
After
Fair Value
(Rp billion)
Other Payables
US Dollar
Other
Accrued Expenses
US Dollar
Japanese yen
Other
22
2
34
25
0
Advances from Customer and Suppliers
US Dollar
0
Current Maturities of Long-Term Liabilities
US Dollar
Japanese yen
Promissory Notes
US Dollar
Long-term liabilities
12
768
-
2
307
307
23
23
475
475
3
3
7
166
88
-
28
3
3
7
166
88
-
26
2
-
307
23
-
475
3
3
7
183
110
-
28
-
US Dollar
187
2,586
-
151
2,212
104
61
58
2,557
Japanese yen
(1) Asset and liabilities denominated in other foreign currencies are presented as U.S Dollar equivalents using the Reuters buy and sell
6,143
704
352
717
88
88
88
88
-
rates prevailing at end of the reporting period
(2) Long term liabilities for the purpose of this table consist of loans denominated in foreign currencies from two step loans, obligation
under finance leases and long term bank loans
The following graph shows the movement of the rupiah against the US dollar in 2015.
Transaction - USD
(Exchange Rates on Transaction)
Rupiah
15,000
12,000
9,000
6,000
S
o
u
r
c
e
:
B
a
n
k
I
n
d
o
n
e
s
i
a
Ja n 3, 2 011
M ay 12, 2 011
S e p 15, 2 011
F e b 2 3, 2 012
J u n 2 7, 2 012
O ct 9, 2 012
Ja n 2 2, 2 013
M ay 3, 2 013
S e p 18 2 013
F e b 2 7, 2 014
J u n 2 0, 2 014
O ct 17, 2 014
Ja n 13, 2 015
M ay 21, 2 016
S e p 10, 2 015
Ja n 14, 2 016
M ar 2 8, 2 016
274
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
interest rate risk
Our exposure to interest rate fluctuations results primarily from changes to the floating rate applied for long-term
debt. This risk relates to loans under the Government on-lending program that has been used to finance our capital
expenditures. Interest rate fluctuation is monitored to minimize any negative impact to financial position. Borrowings at
variable interest rates expose our Company and our subsidiaries to interest rate risk. To measure market risk fluctuations
in interest rates, our Company and our subsidiaries primarily use interest margin and maturity profile of the financial
assets and liabilities based on changing schedule of the interest rate.
The actual cash flows from our debt are denominated in Rupiah, US Dollar, and Japanese yen, as appropriate and as
indicated in the table. The information presented in the table has been determined based on the following assumptions: (i)
fixed interest rates on Rupiah time deposits are based on average interest rates offered for three month placements in effect
as of December 31, 2015 by the banks where such deposits were located; (ii) variable interest rates on Rupiah denominated
long-term liabilities are calculated as of December 31, 2015 and are based on contractual terms setting interest rates based
on average rates for the preceding six months on three month certificates issued by Bank of Indonesia or based on the
average three month deposit rate offered by the lenders; (iii) fixed interest rates on US Dollar deposits are based on average
interest rates offered for three month placements by the various lending institutions where such deposits are located as
of December 31, 2015 and (iv) the value of marketable securities is based on the value of such securities on December 31,
2015 However, these assumptions may change in the future. These assumptions are different from the rates used in our
Consolidated Financial Statements; accordingly, amounts shown in the table may differ from the amounts shown in our
Consolidated Financial Statements.
Outstanding Balance as of
December 31, 2015
Expected Maturity Date
Fair Value
Original
Currency
(million)
Rp
Equivalent
(Rp billion)
Rate (%)
2016
2017
2018
2019
2020 Thereafter
(Rp billion)
Interest Rate Risk
ASSETS
Fixed Rate
Cash and Cash
Equivalent
Time Deposit
Rupiah
19,533,898
19,554
Dollar AS
Other Current
Financial Assets
Time Deposit
342
4,698
3.75% -
10.50%
0.10% -
3.00%
19,554
4,698
US Dollar
21
289
0.85% -
0.88%
289
Available-for-sale
Securities
Rupiah
US Dollar
LIABILITIES
Short-term Bank
Loans
Variable Rate
Rupiah
Principal
Interest
Fixed Rate
Rupiah
Principal
Interest
17,102
6
17
88
10.40%
6.875%-
7.25%
17
88
436,523
436
436
165,849
166
166
19,554
4,698
289
17
88
436
166
275
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
Outstanding Balance as of
December 31, 2015
Expected Maturity Date
Fair Value
Interest Rate Risk
Original
Currency
(million)
Rp
Equivalent
(Rp billion)
Rate (%)
2016
2017
2018
2019
2020 Thereafter
(Rp billion)
Long Term
Liabilities(1)
Variable
Rate
Rupiah
Principal
15,278,703
15,279
2,788
2,927
5,724
1,538
1,430
872
15,255
Interest
4,073,085
4,067
U.S. Dollar
Principal
Interest
Fixed Rate
Rupiah
160
2,210
6
84
8.54%-
13.00%
1.52%-
2.32%
1,516
1,196
766
339
173
77
-
58
34
35
2,100
33
17
17
0
-
-
-
-
2,193
-
Principal
10,612,142
10,612
158
120
120
335
2,316
7,563
10,606
12,031,057
12,032
40
4
6,911
1,018
537
56
792
117
5.18%-
11.00%
2.18%-
4.00%
3.10%
1,088
1,072
1,062
1,049
955
6,806
-
109
18
88
24
111
14
88
21
111
11
88
18
87
7
88
16
61
4
88
13
58
2
352
25
542
-
827
-
Interest
US Dollar
Principal
Interest
Japanese
yen
Principal
Interest
Finance lease
Rupiah
Principal
4,547,740
4,548
616
660
629
596
614
1433
4,548
Interest
US Dollar
Principal
Interest
1,485,381
1,485
2
0
32
4
2.75%-
15.0%
4.0%-
5.8%
383
323
259
204
152
164
-
25
3
7
1
-
0
-
-
-
-
-
-
32
-
(1) Long-term liabilities consist of loans which are subject to interest; namely two step loans, bonds and notes and long-term bank
loans, which in each case include their maturities
leGal issues
In conducting our business activities, we always take
Over the following legal disputes, Telkom argues that any
into account the aspect of compliance with regulations
subsequent investigation or court decision will not have
relating to the capital market, as well as regulations
any material impact to us or our subsidiaries. Based on
that have relevance to the scope of our business.
management’s estimates of the probable outcomes of
Nevertheless, there are some differences in interpretation
and implications to our operations and our business and
these cases, we have reserved up to Rp 25,000,000,000,
- (twenty five billion) on December 31, 2015.
its subsidiaries, particularly on legal issues related to
land disputes, monopolistic practices and unfair business
The following is an elaboration regarding several important
competition and SMS cartel practices.
legal cases that we, the Board of Commissioners, the
Board of Directors, and our subsidiarie are facing.
276
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
legal issues faced by the board of Commissioners and board of directors
During 2015, the Members of the Board of Commissioners and Board of Directors who were in office have not faced
any legal issues.
legal issues faced by the board of directors and board of Commissioners
year
Name of Dispute
Status
Summary of
Dispute
Number of
Lawsuits
Impact to Company
2015
2014
2013
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
legal issues faced by the Company
Telkom and its subsidiaries faced 8 (eight) lawsuits in 2015, while 5 (five) cases are final and binding (inkracht), with the
following recapitulation:
telkom’s legal issues
Status
2013
2014
2015
In process
Final and binding
Sub Total
Total
Criminal
Civil
Criminal
Civil
Criminal
Civil
1
-
1
4
-
4
-
1
1
2
-
2
2
1
3
6
4
10
5
3
13
For disclosure purposes, we are disclosing the legal issues faced by the Company in 2015, as follows:
Object of Dispute
Type of Court
Status of Dispute
Financial Impact
Telkom as Defendant and KPPU as Plaintiff in
the case involving alleged violation against
Article 5 of Law No. 5 of 1999 regarding the
Prohibition of Monopolistic Practices and Unfair
Business Practices
Commission for
the Supervision
of Business
Competition (KPPU)
Telkom, the Government of the Province of
South Sulawesi, Government of the Regency
of Gowa, National Land Agency, jointy as
Defendant and Andi Jindar Pakki, et al, as
Plaintiff in the Telkom land dispute at Jl. AP.
Pattarani, Makassar.
District Court
Telkom’s objection filed
at the Central Jakarta
District Court over the
decision of the KPPU
has been accepted.
Currently, KPPU is
filing for cassation.
Telkom has replied to
the cassation at the
Supreme Court of the
Republic of Indonesia
Judicial Review at the
Supreme Court of the
Republic of Indonesia
18 billion
Rp57.6 billion
277
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES legal issues faced by subsidiary entities
Subsidiary entities faces 1 (one) lawsuit in 2015.
Object of Dispute
Type of Court
Status of Dispute
Telkomsel along with other
Operators are under the
investigation of KPPU in relation
to alleged SMS cartel practices
committed by the Operators. KPPU
has issued a Decision, punishing
Telkomsel to pay a fine in the
amount of 25 billion, against which,
Telkomsel has filed an objection to
the District Court
Commission for
the Supervision
of Business
Competition
(KPPU)
Currently, the Company
(Telkomsel) is in the process
of replying the Cassation filed
by KPPU at the Supreme Court
of the Republic of Indonesia
over the objection filed by the
Company
Financial
Implications
Rp25 billion
aCCess and transparenCy of
information
We also publish Annual Report books distributed to
shareholders and other stakeholders. The submission of
periodic reports, publications, punctuality and accuracy
We periodically disemminate information on the activities
of financial statements are our main priorities.
and performance of the Company. Disclosure is conducted
with the objective to fulfill the mandate and provisions of
In accordance with Bapepam-LK regulation No. X.K.1
the the financial institution authorities.
and Indonesian Stock Exchange Regulation No. 1-E
VI, as well as to enhance transparency, Telkom aims to
Activities that we have conducted in 2015, include, among
ensure that material information is always published and
others, the issuance of press releases, the publication
reported to OJK and the Indonesian Stock Exchange. The
of the Company’s performance and business outputs
following table reflects the implementation of information
periodically every three months in national mass media
disclosure in 2015:
and the convening of press conferences.
progress of information disclosure
Form of Disclosure
Announcement Publication Advertisement
Quarterly Financial Statement Adverstisment
Annual Report
Presentation of Telkom’s Performance
Press Release
Press Conference
Media Visit
Media Gathering
Media Gathering
2015
5
1
1
1
6
105
32
3
2
publiCation notiCe advertisement/announCement
During 2015, Telkom has published 4 (four) notice advertisements in printed media. The following is a list of
advertisements published by Telkom in 2015 through publication notice advertisements/announcements that we have
conveyed through mass media in 2015:
278
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA 2015 telkom advertisement publications table
No
Information
Published at
Date of Publi-
cation
1
2
3
4
Announcement of 2015 General Meeting of
Shareholders
Annual Audited Financial Statement for the
2014 Financial year
Invitation to the 2015 Annual General
Meeting of Shareholders
Resolution of the 2015 General Meeting
of Shareholders and the schedule and
procedures regarding the division of
dividends for the 2014
Investor Daily, Bisnis Indonesia, Jakarta Post March 11, 2015
Investor Daily, Bisnis Indonesia, Jakarta Post
March 09, 2015
Investor Daily, Bisnis Indonesia, Jakarta Post March 26, 2015
Investor Daily, Bisnis Indonesia, Jakarta Post
April 21, 2015
5. Consolidated Financial Statements
Investor Daily, Bisnis Indonesia
August 03, 2015
(Unaudited) Quarter II for Fiscal year 2015
press release
As a form of information disclosure, we constantly provide information through mass media, among others in the form
of press releases. In 2015, Telkom has published 105 press releases as a form of public transparency. The following is a
list of press releases published in 2015:
No
Nomor
Date
News Release
1
2
3
4
5
6
7
8
9
01/PR110/COMM-22/2015
January 15
Telkom Helps in Assisting the 2015 National Selection for State Higher
Learning Institutions
02/PR110/COMM-22/2015
January 16
Telkom Announces the Winner of the BestAppsID Competition
03/PR110/COMM-22/2015
February 9
The People of Batam Can Now Enjoy Indihome 100% Fiber Services
04/PR110/COMM-22/2015
February 10
In the Aftermath of the Jakarta Floods, Telkom Group Ensures Smooth
Services
05/PR110/COMM-22/2015
February 11
Telkom Continues to Upgrade Flexi Services to Telkomsel
06/PR110/COMM-22/2015
February 14
07/PR110/COMM-22/2015
February 18
08/PR110/COMM-22/2015
February 23
Telkom Receives the Best Achievement Award at the Indonesia Best
Corporate Transformation Awards 2014
In Support of the Indonesian Maritime Fulcrum, Telkom Presents 18
Broadbrand Ports in 2015
Telkom Supports the Tanjung Lesung Digital World as a National
Tourism Destination Development Center
09/PR110/COMM-22/2015
February 26
In Support of the Indonesian Digital Creative Industry, Telkom Kicks-off
Indigo Incubator 2015
10 10/PR110/COMM-22/2015
February 27
Telkom Consistent in Implementing CSR in the Field of Education
11
11/PR110/COMM-22/2015
March 2
12
12/PR110/COMM-22/2015
March 3
13
13/PR110/COMM-22/2015
March 3
14 13a/PR110/COMM-22/2015
March 4
Keraton Kasepuhan Cirebon with Web Commerce and e-ticketing
“When Culture Meets Technology”
Telkom Supports Universitas Terbuka Service Center (SALUT) as a
Devotion to Education in Indonesia
Telkom and PATA Supports Keraton Kasepuhan Cirebon to be a World
Class Heritage Site through e-ticketing and Web Commerce
The Synergy between Telkom and PATA in Supporting the Advancement
of Indonesian Tourism
14/PR110/COMM-22/2015
March 10
Indihome Fiber Presents Legendary Band Air Supply
15/PR110/COMM-22/2015
March 11
Telkom Launches Indihome Movie Card
16/PR110/COMM-22/2015
March 13
PT Telkom Supports CSR in the field of Education through the One
Pipe Education System from the Telkom Foundation
17/PR110/COMM-22/2015
March 18
Telkom Consistent in Growing Positively Above Industry Standards
15
16
17
18
19
18/PR110/COMM-22/2015
April 1
20 19/PR110/COMM-22/2015
April 13
21
20/PR110/COMM-22/2015
April 16
The Development of Sea Cable Communications Systems between
Indonesia and the USA (SEA-US) Commences
Supporting the Education Field, Telkom Assists in the Success od
SBMPTN 2015
Telkom is Ready to Assist in Ensuring the Success of the 60th
Commemoration of the Asia-Africa Conference
279
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES No
Nomor
Date
News Release
22
21/PR110/COMM-22/2015
April 17
23 22/PR110/COMM-22/2015
April 22
24
23/PR110/COMM-22/2015
April 23
25
24/PR110/COMM-22/2015
April 24
26
25/PR110/COMM-22/2015
April 24
27
26/PR110/COMM-22/2015
April 28
28
29
27/PR110/COMM-22/2015
28/PR110/COMM-22/2015
May 2
May 3
30 29/PR110/COMM-22/2015
May 6
Telkom Consistent in Growing Positively Above Industry Standards
and Ready to be the King of Digital
Visiting Main Commando Post, the Minister for Communications and
Information Trust the Asia-Africa Conference ICT to Telkom
Telkom and the Bandung Municipal Government Signs the KAA
Garden Monument at Jl. Dr. Junjunan Pasteur Bandung
The Minister for Communication and Information Surveys the
Telkom Main Commando Post for the Asia-Africa Conference and
Media Center
Support of the Telkom Group ICT: from the APEC Summit 2013 to the
Asia-Africa Summit 2015
Telkom Bridges the Digital Divide in Indonesia by Providing Digital
Acces on Land, Sea and Air
First Quarter 2015, Telkom Records Double Digit Revenue
Improving the Infrastructure in the Eastern Part of Indonesia, Telkom
Develops the Luwuk Tutuyan Cable System
Telkom Presents Smart Building Solution at the Semarang Town
Square
30/PR110/COMM-22/2015
May 8
The Telkom IndiSchool-SMART Program Makes Learning Easier
40 39/PR110/COMM-22/2015
May 25
Telkomtelstra Bridges the Australian and Indonesian Business Relationship
31
32
31/PR110/COMM-22/2015
May 10
33
32/PR110/COMM-22/2015
May 11
34
33/PR110/COMM-22/2015
May 11
35
34/PR110/COMM-22/2015
May 13
36
35/PR110/COMM-22/2015
May 19
37
36/PR110/COMM-22/2015
May 19
38
37/PR110/COMM-22/2015
May 20
39
38/PR110/COMM-22/2015
May 20
41
40/PR110/COMM-22/2015
May 25
42
41/PR110/COMM-22/2015
May 27
42/PR110/COMM-22/2015
43/PR110/COMM-22/2015
June 1
June 1
44/PR110/COMM-22/2015
June 5
43
44
45
46
47
The President Inaugurates the SMPCS Sea Cable Communications
System in Papua
Entering into a Cooperation with HKI, Telkom Builds Broadband
Industrial Estate
Telkom and Pelni Enters into Cooperation in the Development of
Information Technology System
Presenting Managed Solutions Services, Telkomtelstra Stands Ready
to Operate in Indonesia
Telkom Corporate University receives “Best Overall Corporate
University” at the Global Council of Corporate University Awards
Telkom Actively Participates at the 2015 Asia-Pacific FTTH Conference
and Exhibition
Supporting the Creative Digital Industry, Telkom Partners Up with 56
Startup Participants of the 2015 Indigo Apprentice Awards
Supporting the Digital Creative Industry, Telkom Partners up with 56
Startups Participants of the Indigo Apprentice Awards 2015
SOE Synergy, Telkom Supports BTN’s Cermat Laku Pandai Savings
Product
Telkom and Djakarta Lloys Conducts Cooperation in the Procurement
of Infrastructure and Development of ICT Services
Ready to Become a Global Hub, Telkom Acquires GTA Teleguam
Telkom Launches Kampung UKM Digital
Focused on International Business, Telkom Develops Data Center in
Singapore
45/PR110/COMM-22/2015
June 14
Kampung UKM Digital reaches Bandung
46/PR110/COMM-22/2015
June 19
48
47/PR110/COMM-22/2015
June 28
The Operationalization of the Government-owned Data Center and
Disaster Recovery Center in Indonesia
Telkom Consistent with its Achievements: for June 2015, Telkom
Receives Various Prestigious Awards
49
48/PR110/COMM-22/2015
June 30
Telkom and Pelni Inaugurates On-Ship Connectivity Services
50 49/PR110/COMM-22/2015
July 3
51
50/PR110/COMM-22/2015
July 16
52
51/PR110/COMM-22/2015
July 28
Sharing Moment for TelkomGroup with 5000 Orphans and 1000
UMKM
Minister of Communication and Information Monitors Telkom’s
Services Prior to Ied al-Fitr
Telkom Has Prepared Back-up Satellite to Address Sea Cable System
Disturbances between Biak-Jayapura
52/PR110/COMM-22/2015
August 3
Telkom’s Semester 1 2015 Financial Statement
53PR110/COMM-22/2015
August 6
Perumnas and Telkom Realizes SOE Synergy
54/PR110/COMM-22/2015
August 14
Telkom Spreads Fighting Spirit Through Free Services and 45% Direct
International Call Discount
53
54
55
280
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA No
Nomor
Date
News Release
56
55/PR110/COMM-22/2015
August 16
57
56/PR110/COMM-22/2015
August 21
58
57/PR110/COMM-22/2015
August 19
59
60/PR110/COMM-22/2015
August 27
60 58/PR110/COMM-22/2015
September 2
61
59/PR110/COMM-22/2015
September 2
62
61/PR110/COMM-22/2015
September 6
SOE Tribute to Indonesia at the Commemoration of the 70th
Anniversary of Indonesia’s Independence in West Java
Telkom Showcases Premium Products and Services at the Indonesia
Hebat Exhibition
TelkomGroup Synergy Present International Remittance Service in
Timor Leste
Telkom made as Benchmark in the Implementation of Corporate
Culture by ThyssenKrupp AG
SOE Synergy: Garuda and Telkom Launches Ticket Payment Services
at Indomaret
Telkom Supports “Bangunan Gedung Hijau” Program by Conducting
Infrastructure Procurement and ICT Integrated Solution Smart Building
Services Development Cooperation
Telkom Nominated as the Best Company on Marketing Three Times in
a Row
62/PR110/COMM-22/2015
September 10
Telin Malaysia Presents Kartu As 2 in 1
62a/PR110/COMM-22/2015
September 10
Indonesia Best eMark Award 2015, Appreciation for Companies that
Optimize the Use of ICT
63/PR110/COMM-22/2015
September 10
Telkom and Intiwhiz Hotel Conducts Cooperation for Digital Hotel Services
64/PR110/COMM-22/2015
September 14
Telkom Supports the Digitalization of Indonesian Banking
65/PR110/COMM-22/2015
September 15
68
66/PR110/COMM-22/2015
September 17
Partnering with T-System, TelkomGroup Develops Airport
Management System Solution
Telkomtelstra Presents the First Customer Experience Center in
Indonesia
69
67/PR110/COMM-22/2015
September 21
TelkomGroup Synergy to Support the Success of Sail Tomini 2015
70 68/PR110/COMM-22/2015
September 22 Global Company from Korea, Lotte Members Partners with Telkom for
Business Cooperation
71
72
69/PR110/COMM-22/2015
September 23
Telkom Receives Prestigious Award Once Again
70/PR110/COMM-22/2015
September 24 Kurban-spirit Forms Nation’s Cultural Values, as a basis in Creating a
Just and Prosperous Society
73
71/PR110/COMM-22/2015
September 28 Accor Group and Telkom Indonesia’s Synergy, Making Indonesian
74
72/PR110/COMM-22/2015
September 28
75
73/PR110/COMM-22/2015
October 1
Tourism Go Global
Supporting Small Creative Industries in Bali through the Digital
Innovation Lounge (DILo)
Telkom Group Takes Home Frost & Sullivan Indonesia Excellence
Award
74/PR110/COMM-22/2015
October 7
Providing the Best Services Approaching Christmas and the New year
63
64
65
66
67
76
77
75/PR110/COMM-22/2015
October 9
78
76/PR110/COMM-22/2015
October 15
79
77/PR110/COMM-22/2015
October 19
80 78/PR110/COMM-22/2015
October 22
81
79/PR110/COMM-22/2015
October 23
82
80/PR110/COMM-22/2015
October 25
83
81/PR110/COMM-22/2015
October 25
84
82/PR110/COMM-22/2015
October 28
85
83/PR110/COMM-22/2015
October 30
86
84/PR110/COMM-22/2015
November 2
87
85/PR110/COMM-22/2015
November 6
Receiving the “Marketing 3.0 Awardee of the year”, Telkom is Ready
for the ASEAN Economic Community
Partnership between Telkom & Sony Felica Presents Smartcard System
in Indonesia
Hackathon Merdeka 2.0, Presentation for the Nation through the Use
of ICT
Receiving 7 Awards at the Indonesia Human Capital Study Award
2015: Telkom Nominated as the Best Company in the Management of
Human Capital
Telkom Receives First Place in Indonesia’s Top 100 Most Valuable
Brands
Hackathon Merdeka 2.0 a National Movement to Support
Digitalpreneurship
Receiving the International Business Award 2015, Telkom’s various
Innovation Results in International Award
Using Every Moment to Become a Media Communications Company,
Telkom Receives the Indonesia Pubic Relations Award 2015
Telkom Inaugurates the Mandala Wisata Borobudur Area as the
twentieth Kampung UKM Digital
20 years in the Stock Market Evidence of Credibility in the Management
of the Company
Telkom Receives Top Infrastructure 2015 and Top IT & TELCO 2015,
The King of Digital is a Commitment to Advance the Technology
Infrastructure in Indonesia
281
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES No
Nomor
Date
News Release
88
86/PR110/COMM-22/2015
November 9
Telkom Financial Statement for Quarter III of 2015, Telkom’s Revenes
Increase 15% to Rp75.7 Trillion, Cellular Voice and Data, Internet & IT
Service Contributes to Telkoms Earnings
89
87/PR110/COMM-22/2015
November 10
STARBox Supports SOE as Economic Hero
90 88/PR110/COMM-22/2015
November 22
91
89/PR110/COMM-22/2015
November 25
Hackathon Merdeka 2.0 National Finals, Giving Rise to Solutions to
Nation’s Issues Application
Telkom President Director Sounds the Closing Bell in Wall Street,
Telkom is Committed to Continues as a Multi-listed Company
90/PR110/COMM-22/2015
November 26
Support from ICT Services to Regional Development Banks
92
93
91/PR110/COMM-22/2015
December 3
94
92/PR110/COMM-22/2015
December 3
95
93/PR110/COMM-22/2015
December 4
96
94/PR110/COMM-22/2015
December 7
Telkom Siaga dan Peduli Bencana Banjir, Commitment to Deliver the
Best Services under any Condition
Bandung Becomes First City with Online Services in Every Kelurahan,
Telkom Group Supports Fiber Optic Infrastructure and e-Kelurahan
Application
Developing Fertilizer Distribution System, Telkom and Bhanda Ghara
Reksa Strengthens SOE Synergy
Strengthening Sea Defense of the Maritime Fulcrum, Indonesian Navy
Invites Telkom to Develop Satellite Communication System with VSAT
Backbone
97
98
95/PR110/COMM-22/2015
December 14
STARBOX Speeds up UKM Goes Digital
96/PR110/COMM-22/2015
December 15
Committed to Provide Premium Services, Protecting Christmas and
New year 2016
99
97/PR110/COMM-22/2015
December 17 Welcoming Christmas and New year through TelkomGroup Berbagi Spirit
100 98/PR110/COMM-22/2015
December 18
Broadband Industrial Estate as Support for Industrial Areas
101
102
99/PR110/COMM-22/2015
December 18
Approaching MEA, Telkom Strengthens UKM Goes Digital Education
100/PR110/COMM-22/2015
December 18
Customer Trust Results in 1 Million IndiHome
103 101/PR110/COMM-22/2015
December 21
Telkom & PPI Realizes ICT-based Indonesia Trading House
104 102/PR110/COMM-22/2015
December 29
Telkom and Posindo Strengthens Synergy in the Utilization of
Company Resources
105 103/PR110/COMM-22/2015
December 29
Telkom is Ready to Enter into ICT Outsourcing Portfolio
website
Telkom always ensures compliance towards regulations
on information disclosure to the external public. Such
compliance, particularly in the submission of various
reports and other important information that are required
to be posted on the website. We manage a website with
the following address: www.telkom.go.id
Reports as well as other information that are required to
be posted on the wesbite, are as follows:
1. Quarterly Financial Statement Publications;
2. Annual Financial Statement Publications;
3. Annual Statement;
4. Company Management Implementation Reports;
5. Product and services Publication.
Telkom continues to develop and add information
2015 telkom’s website visitors table:
Month
January
Febuary
March
April
May
June
July
Unique
Visitor
Number Of
Visit
Hits
439,363
813,893
1,126,332
417,455
754,014
1,104,584
462,043
833,636
1,267,065
424,010
751,299
1,156,191
401,027
722,840
1,103,417
352,285
640,690
970,352
319,033
583,537
856,069
August
408,475
768,362
1,185,328
September
425,016
815,434
1,301,276
October
380,709
719,857
1,064,946
access features to the website. The updating of the
November
313,222
569,422
899,409
newest information is the priority in the management
of our website. Furthermore, we also possess a very
good intranet network that enables us to communicate
more actively.
December
299,297
518,618
828,848
Total
4,641,935
8,491,602
12,863,817
Average/
month
386,828
707,634
1,071,985
282
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA telKom indonesia soCial media
Telkom is committed to be the King of Digital and is
currently developing all of its digital services. One of its
services is social media, since at the moment, social media
users in Indonesia continues to grow, in terms of both
personal and corporate accounts. As Indonesia’s largest
telecommunications company, Telkom must maintain its
social media presence by providing sustainable updates
and information, not only based on news related to the
corporation, but also to convey our values, vision and
mission to the public.
This can be seen through our 3 official social media
accounts, namely: Telkom Indonesia, Telkom Promo and
Telkom Care. All three accounts are official and have been
verified on Facebook and Twitter. All three accounts are
created with different objectives, namely:
• Telkom Indonesia was created to convey Global
Information on Telkom Indonesia (Corporate Image);
• Telkom Promo was created to convey Telkom and
Telkom Group’s Product and Program Marketing, with
a particular focus on IndiHome product information;
• Telkom Care was created as a Care service for Telkom
customers, with a particular focus on IndiHome
products.
Until December 31, 2015, the number of @telkomindonesia,
@telkompromo and @telkomcare fans and followers are
as follows:
Facebook
Total
Fans
Twitter
Total
Followers
Telkom
Indonesia
Telkom
Promo
Telkom
Care
84,128 @telkomindonesia
54,616
536,435 @telkompromo
110,662
19,505 @telkomcare
96,856
In each of the three social media accounts, aside from
program activation, such accounts has also served
as a media for interaction for Telkom customers on
social media.
Activities conducted among others
include
the
dissemination
of
product/program
information,
knowledge-sharing, tips, news, greetings, and quizes.
From such activities, several trending topics have
surfaced such as the #BUMNutkNegeriEuy campaign,
#TelkomMDK, #TelkomKingofDigital, #IndiHomeTM88,
#IndihomeHarpelnas, etc.
The Telkom Care account has received several awards
such as The Best Contact Center Indonesia 2015, The Best
Social Media Corporation, as well as being ranked number
2 for its Fanpage, as well as ranked number 3 in Indonesia
in twitter in terms of response time, according to Social
Baker.
The following displays the performance of the @
telkomindonesia, @telkompromo and @telcomcare social
media accounts for 2015:
Accounts
Telkom Indonesia
Telkom Care
Telkom Promo
Mentions
Retweets
13,805
62,331
27,714
7,695
10,387
8,948
presentation of telKom’s performanCe
We have always presented our financial performance and other important performances to regulators, government institutions,
stakeholders, as well as other parties planning to conduct a comparative study on Telkom.
283
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 1
2
3
4
5
6
The presentation of Telkom’s performance in 2015, as follows:
performance presentation 2015
No
Performance Presentation Material
Performance Presentation 2014
Performance Presentation First Quarter 2015
Date
March 11
May 7
Institution
Analysts, Investors, Media
Analysts, Investors, Media
Public Expose
May 20
Analysts, Investors, Media
Performance Presentation Second Quarter 2015
August 4
Analysts, Investors, Media
Investor Summit 2015
November 9
Indonesia Stock Exchange,
Analysts, Investors, Media
Performance Presentation Third Quarter 2015
November 10
Analysts, Investor, Media
Other than conducting the routine performance presentations above, we also present the company’s performance
materials in 8 conferences and non deal road shows, and 4 times in 2013, as shown by the table below:
No
1
2
Conference
Indonesia All Access 2015
Indonesia Investment Day
3
4
5
6
7
8
9
10
11
12
UBS Indonesia Conference
18th Asian Investment
Conference
6th Access Asia Conference
Nomura Investment Forum
Asia 2015
CIMB 9th Annual Indonesia
Conference
Indonesia Consumer and
Lifestyle Conference
ASEAN Conference
Indonesia Investor
Conference 2015
Indonesia Corporate Day
Investor Gathering
Location
Date
January 20 – 21, 2015 Jakarta
Jakarta
January 27 – 29,
2015
March 9, 2015
Jakarta
Institution
Nomura
Bank Mandiri, Mandiri Sekuritas, dan
Barclays Capital
UBS
March 23-27, 2015
Hong Kong
Credit Suisse
May 18-22, 2015
June 4-5, 2015
Singapura
Singapura
Deutsche Bank
Nomura
June 11-12, 2015
Bali
CIMB
August 12, 2015
Hong Kong
Credit Suisse
August 24-25, 2015 Singapura
Macquarie
Jakarta
September 9 – 10,
2015
October 5 – 6, 2015 London
December 23 – 24,
2015
New york
Citi
Mandiri Sekuritas dan Barclays
Deutsche Bank
No Non Deal Roadshow
Date
Location
Institution
Non Deal Roadshow with BAML March 25 – 26, 2015 Hong Kong
Bank of America Merril Lynch
Non Deal Roadshow with
Bahana Securities
May 21, 2015
Jakarta
Bahana Securities
Non Deal Roadshow with BAML October 1 – 2, 2015
Non Deal Roadshow with
Deutsche Bank
December 16-20,
2015
London &
Edinburg
San Fransisco,
Boston, New
york
Bank of America Merril Lynch
Deutsche Bank
1
2
3
4
284
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
transparenCy of internal
CommuniCations
Telkom continuously creates two-way communication
through various communication media to support the
achievement of performance objectives in the framework
of creating a condusive internal communication climate.
Among others through portal.telkom.co.id and Kampiun.
dialoGue aCtivities between
manaGement and employees
To create a good communications climate between the
management and employees, several dialogue activities
between management and employees have been
conducted through visits by the Board of Directors to the
Division offices and Telecommunication Areas in various
internal events.
relations with staKeholders
The followings are the identification result of stakeholders’
expectations:
Stakeholders
Stakeholders’ Expectations
Customers
• Level of satisfaction of
products and services
• Accuracy and transparency
billing and operations
• Products and services
sustainability guarantee
Shareholders
• Always distribute dividends to
the shareholders
• Trends in the share price
continues to rise
• Always adapt to a new
environment
• Win the market and always
ready to compete
• Continuity of financial
performance growth
• Business expansion
governance guarantee
• World class management
practices
• Welfare of employees
• A good place for a career
Acknowledges and understands
the needs and
expectations of stakeholders and attempts to fulfill
them using the existing resources in maximum is an
important part of GCG to realizing the equality of justice
for stakeholders.
Employees
Government
• Compliance with government
Through the corporate culture of “The Telkom Way”, the
management tried to cultivate the values and culture
of the Company by way of acknowledgement among
employees with reagrd to the values that must always
be communicated to all stakeholders and make it as a
center of inspiration, including norms and principles of
corporate governance.
Competitors
Investors
& Financial
Communities
Public
regulations
• Transparency and tax
complianc
• Be an example for State-
Owned Enterprises
• Participating inincreasing the
GDP
• Fair business competition
• Establish mutual business
partnership
• Sharing of resources to reduce
costs
• Transparency of the company’s
reports
• The Company’s financial
reports that are reliable
• Employment
• Multiplier effect of economy
• Provide a positive impact for
the public
business ethiCs and Corporate
Culture
Telkom individuals always uphold the morals and ethics
as the foundation for the implementation of GCG. As time
goes by in our effort to manage GCG, the implementation
legal awareness and created
of GCG has formed
employees who are sensitive to social responsibility and
loved by customers.
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Code of Conducts
As a guideline for all individuals behavior of the Company,
Telkom has issued a Board of Directors’ Resolution
socialization and business ethics enforcement
efforts
Understanding and efforts to remind employees about
No.KD.201.01/2014 regarding Business Ethics in Telkom
values and ethics of business is carried out through the
Group Environment.
dissemination of information materials and assessment
which undertaken every year. Such materials relating to
By the issuance of the Business Ethics Guidelines, we have
the understanding of corporate governance, business
a set of business ethics, which is the standard behavior
ethics, integrity pact, fraud, risk management, internal
of employees in dealing with customers, suppliers,
control (“SOA”), whistleblowing, prohibition on gratuities,
contractors, fellow employees and other parties that have
IT governance, ensuring information security and other
a relationship with the company.
integrated matters related to corporate governance
Code of ethics enforcement application for
board of Commissioners, board of directors and
employees
According to the provisions of the Sarbanes Oxley Act
practices. The efforts are conducted through a business
ethics survey program with the population of all
employees. The survey was conducted online, through
the portal media/intranet, which concluded with a
willingness statement of employees to conduct the
(“SOA”) 2002 section 406, we carry out the code of
business ethics. The understanding and implementation
conduct which applies to all levels of the organization,
of the business ethics and survey results are annually
namely, the Board of Commissioners, Board of Directors
audited, both internally and externally, through the SOA
and other key officers and all employees who can be
404 audit process associated with the application of
seen in our website: http://www.telkom.co.id/hubungan-
appropriate control environment in accordance with the
investor/tata-kelola-perusahaan/kode-etik/. We will also
COSO framework during the internal audit control of the
inform any change or waivers from the code of ethics
entity’s level.
through the website.
values of Corporate Culture
The Corporate Culture is fully formulated as follows:
KEy BEHAVIOR
(IMAGINE, FOCUS, ACTION)
PRACTICES TO BE THE WINNER
CORE VALUES
(SOLID, SPEED, SMART)
PRINCIPLES TO BE THE STAR
BASIC BELIEF: ALWAyS THE BEST
(INTEGRITy, ENTHUSIASM, TOTALITy)
PHILOSOPHy TO BE THE BEST
ifa
Imagine
Focus
Action
Solid
Speed
Smart
- Planning a winning
- Setting Targets
- Risks aversion
- Focus
- Setting quick win
- Resources optimalization
- Real action
- Evaluation
- Continuous improvement
- Sinergy
- Shared vision
- Mutual trust
- Initiative
- Rapidity of service
- Rapidity of deciding
- Understanding the purpose
- Setting priorities
- Seeking new ways
always the best
Integrity
Enthusiasm
Totality
- Integrity
- Positive attitudes
- Honesty
- Enthusiasm
- Sincerity
- The desire to be the best
- Totality
- Self improvement
- Comitted to the task
Philosophy to be the Best: Always The Best
Philosophy to be the Best: Integrity, Enthusiasm, Totality
Always the Best is a basic belief to always provide the
Always the Best demands every member of Telkom Group
best in each work. The essence of Always the Best is
to have the integrity, enthusiasm, and totality.
“Ihsan” which in this sense is translated as “(the) best”.
Employees who have Ihsan spirit will always deliver a
Principles to be the Star: Solid, Speed, Smart
better outcome of work than it should be, so as the Ihsan
Principles to be the Star of The Telkom Way is the 3S,
attitude is automatically be guided by a sincere heart. It
namely, Solid, Speed, Smart which also became core
is when any activity performed as a form of worship to
values or great spirit.
God Almighty.
286
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA Solid - All members of Telkom Group must provide their
Practices to be the Winner : Imagine - Focus – Action
best (Always The Best) and increase solidarity among all
Practices to be the Winner of The Telkom Way is IFA,
members of Telkom Group as a Great Team.
namely, Imagine, Focus, Action as the Key Behaviors.
Speed – All members of Telkom Group must work quickly
Socialization of corporate culture is carried out in top-
in every opportunity to win the competition. Because of
down mechanism by setting the Unit Executives to
the fast will beat the slow. “Our speed is our competitive
become Role Models and by Appointment of a Change
advantage.”
Agent in each unit. To activate the corporate culture, 2015
has been deignated as the year of Cultural Activation
Smart - All members of Telkom Group are expected to
which aimed to internalize the corporate culture on
work smart, to understand the objectives, set priorities
employee’s daily behavior.
and are always looking for new and better ways to achieve
the goals.
The 2015 Culture Activation Program is organized in a
Calendar of Event as follows:
To provide the same perception to the Change Agents,
a Culture Agent Onboarding program had conducted
Acceleration of cultural activation activities is carried out
by establish a Cultural Provocation Activation Community
which followed by the entire Change Agents totaling 263
(Kipas) in every unit that is managed directly by the Role
person from Telkom and 85 person from the Subsidiaries.
Models and Change Agent in the related unit. In 2015 has
formed 147 Kipas Budaya. Monitoring of Kipas Budaya
activities in the Unit conducted by online using a Telkom
Knowledge Management System called KAMPIUN.
287
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
In order to motivate employee involvement in the activation of cultural activities, a series of Culture Festival activities
was carried out in October and November which aimed to appreciate the units or employees who are the most active
in activating The Telkom Way culture in the employees’ work behavior in their units. In this activity, a unit has been
chosen as the Most Admired Culture Activation Unit and an Employee as The Most Inspiring Role Model as well as The
Most Inspiring Culture Agent.
Evaluation of the effectiveness of culture implementation is carried out by using Entropy Survey. Entropy Survey
results in 2014 was 9% and in 2015 remained 9%. This indicates that the level of corporate culture is in the PRIME or
HEALTHy category.
evaluation of the implementation of business ethics and Corporate Culture
Each year, we conduct an internal survey to know the effectiveness of our corporate culture and business ethics, we have
called it a Business Ethics Family Survey. Some of the questions addressed to employees through online mechanism in
order to reach all employees quickly, which includes: GCG, Business Ethics, The Telkom Way Values, anti-fraud, internal
controls, the integrity pact, whistleblowing systems, and others. The survey results in 2011, 2012, 2013, 2014 and 2015 are
74.87 points, 79.07 points, 75.80 points, 89.35 points and 97.15 points, respectively, from 100 points of scale. The survey
result in 2015 increased by 7.8 points from the previous year. This illustrates that the level of employees’ understanding
on business ethics is increasing from year to year.
violations reportinG system (whistleblowinG system)
As part of the entity level controls, since 2006 we have implemented a whistleblower program that is designed to
receive, examine and follow up complaints from Telkom Group employees and third parties while maintaining the
confidentiality of the whistleblower. Implementation of whistleblower programs is managed by the Audit Committee,
established by the Board of Commissioners’ Resolution and ratified by the Board of Directors’ Resolution.
288
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
submission and violations reportinG
Telkom Group employees or third parties may submit
• Creating Preliminary Examination Report and
submit it to the President Director with a copy to
complaints regarding accounting and auditing issues,
the Audit Committee.
policy violations, allegations of fraud and/or corruption,
and code of ethics violations, directly to the President
The Investigation Committee plays a role in:
Commissioner or to the Chairperson of Telkom’s Audit
• Conducting Investigation on Complaints; and
Committee via email, fax or mail to the address as follows:
• Creating a report of Investigation Results and
Email
Fax
Website
Letter
: ka301@telkom.co.id
: +62-021 5271800
: www.telkom.co.id
: Komite Audit
PT Telkom Indonesia (Persero) Tbk
Graha merah Putih 5th floor
Jend. Gatot Subroto St. Kav 52, Jakarta
12710
Complaints must qualify the following requirements:
a. Submitted via website, email, fax or mail;
b. Providing information on issues of internal control,
accounting, auditing, policy violations, allegations of
fraud and/or corruption, and violations of the code of
ethics;
c. The information reported must be supported by
evidences that are sufficient and reliable as an initial
data for further investigation.
proteCtion for whistleblowers
Telkom showed a strong determination to provide
protection for whistleblowers through the Resolution
of the Board of Directors No.D.48/2009 that ensuring
the confidentiality of the whistleblower, both employees
and third parties who submit complaints or reports of
alleged violations.
Complaint manaGement offiCer
Whistleblower Protection Officer (“WPO”) is a member
of the Audit Committee who assigned to handle
complaints by:
• Receiving Complaints;
• Administering Complaints;
• Preliminary verification, whether Complaint
is
in
accordance with the criteria or not; and
• Monitoring the Followed-up Complaints.
In a meeting, the Audit Committee determines the
following:
• Approving whether the Complaint received should be
Followed-up or not;
• Approving whether the Complaint should be followed
up to Internal or External affairs; and
• Assessing whether the Followed-up Complaint has
sufficient or not.
Internal Auditors play a role in:
• Conducting preliminary examination on Complaints
received; and
submit it to the President Director with a copy to
the Audit Committee.
number of Complaints violation and
respond
During 2015, the Audit Committee responded to 3
complaints received and qualifed with categories of
complaints related to accounting,
internal control,
regulatory violations, suspected fraud and violations of
the code of ethics.
The use and the results of the whistleblowing system:
Description
Amount
Remarks
Number of
complaints
Qualify
3
0
Complaints received
Complaints qualified
to respond
Complaints handlinG
Complaints handling is to comply with the OJK Rules
No.IX.1.5 and Sarbanes-Oxley Act 2002 Section 301
regarding the Public Company Audit Committee, which
should be placed in the framework of GCG improvement.
Therefore, complaint requirement is necessary to keep
the complainants who submit complaints in a full sense of
responsibility and not defamatory that could defame the
reputation or good name of a person.
The Audit Committee will follow up on complaints of third
parties, including and especially those from Telkom Group
employees relating to:
a. accounting and auditing
Accounting issues and internal control over financial
reporting which could potentially result in material
misstatements in the financial statements and audit
issues, especially related to the independence of the
Public Accountant.
b. violation of regulations
Violations of the capital market laws and regulations
pertaining to the operation of the Company as well as
violations of internal regulations that could potentially
resulting in losses.
c. fraud and/or corruption allegation
Fraud and/or allegations of corruption conducted by
our officials and/or employees.
289
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
d. Code of ethics
Behaviour of Directors and Management that are not commendable may potentially tarnish the reputation of Telkom
or result in losses for us. The behaviour of Directors and Management that are not commendable, namely, among
others, conflict of interest with Telkom, or provide a misleading information to the public.
Telkom has also developed a working mechanism between the Audit Committee by Internal Audit and Investigation
Committee, including protocols with Telkomsel to follow up on complaints received. In addition, the whistleblower
program has also been socialized and has been understood by employees.
Chart of handlinG Complaints of telKom and its subsidiaries
INVESTIGATION PROCESS
WHISTLEBLOWING AND FOLLOW UP
t
i
d
u
A
e
e
t
t
i
m
m
o
C
t
n
e
d
i
s
e
r
P
r
o
t
c
e
r
i
D
n
o
i
t
a
g
i
t
s
e
v
n
I
e
e
t
t
i
m
m
o
C
i
y
r
a
d
i
s
b
u
S
R
H
I
S
B
U
Agreement of
Follow Up
The Appointment
of Expert
Expert
Substance
Evaluation
Archives
Cc
Follow Up
Follow Up
Report
yes
No
Case Review
Subsidiaries?
yes
No
Letter of President
Director to Subsidiary
Cc. 1. President Director
of Telkom
2. Audit Committee
3. Subsidiary IA
Subsidiary
Discussion
Follow
Up?
yes
No
yes
Need
Expert?
Investigation
Team
yes
TL
Combined?
The
Investigation
The Result of
Investigation
No
TPTA?
yes
Note of TL
Note of TL
Documentation
End
No
Letter of
Answers
Investigation by
Subsidiary
The Audit
Report
TPTA Subsidiary
TPTA
Report
No
Team
Combined?
yes
TPTA Combined
TPTA
Report
UBIS
Follow Up
Follow Up
Report
ConsistenCy of GCG implementation
In our environment, understanding of GCG continues to improve
implementation of risk management was not easy and
as in line with the experience and lessons learned for managing
takes time to master the competencies, gain accuracy in
GCG. We believe that GCG is a dynamic system and from time
recognizing the risk of the industry and the organization,
to time should be strengthened and updated to conform
and be able to make a risk culture as part of the culture
with the changes of business and business environment. By
of the employees. Eventually, by dint of seriousness,
continuously updated, the GCG implementation is expected to
consistency and patience of management, obtained
contribute significantly to support the growth of the business
results of the current risk management which has given
and not the other way, which is considered as an impediment
a new color and contribute positively to the process
to organizational agility.
of planning, decision-making and strengthening the
implementation of GCG in Telkom Group.
GCG implementation is integrated with compliance
management, risk management and internal control.
Some major activities that maintained the consistency of
This practice requires us to be able to manage GCG to
its application to support GCG practices which in line with
be in line with business performance management. The
business management are includes:
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PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
performanCe manaGement system
To embody the GCG principles, accountability principle
In a general interpretation, Integrity means consistency
and unwavering persistence in upholding the noble values
in particular, we manage the employee performance
and beliefs. A leader who has integrity will gain trust from
accountability in an Employee Performance Management
its corps. According to some references, Integrity simply
System through a Company policy PR.208.01/r00/PS730/
means the only belief against its values embraced by the
COP-J2000000/2014. As the intent and purpose of the
mind and the action performed. A person of integrity
enactment of this policy, the objective, fair, transparent,
have beliefs, minds and actions that are intact and have
and integrated principles that applied by referring to the
compatibility of each other.
guidelines of measurement and assessment of responsible
performance
in
the mechanism of management
contract/individuals performance system through the
establishment of performance indicators according to the
proCess manaGement with iso
standards
Since 1996, we have consistently been implementing a
scope of duties and role of the units and individuals in
quality management system based on ISO standards and
the organization and the establishment of agreed targets
in 2001, the application is integrated with the criteria of
which refer to the Company’s performance targets as set
performance advantage in Malcolm Baldrige basis. Both
out in the Company’s annual plan.
application of the quality management systems (ISO
and Malcolm Baldrige) is none other than to establish
Target performance is gradually lowered at the level of the
governance process and accountability for performance
unit, sub-unit to the employee by taking into account the
principles of Specific, Measurable, Achievable, Realistic,
through the implementation of discipline process and
good documentation in ISO basis and the improvement
and Time Related (“SMART”), while the evaluation is
of performance advantages of the Company which
performed on a regular basis (daily, weekly, monthly,
refers to the assessment performance excellence in
quarterly, annually) in accordance with the performance
Malcolm Baldrige basis. In 2013, the Company assessed
indicators measured in management’s review mechanism,
its performance advantage by KPKU assessment Team
which
is supported by some applications online
from the Ministry of State-Owned Enterprise and internal
information systems.
assessment (self assessment) is conducted at the level of
Business Unit/Division.
appliCation of inteGrity paCt and
strenGtheninG anti GratifiCation
efforts
Consistency of application of the Integrity Pact has
Certification of IMS (Integrated Management System:
ISO 9001, IS0 27001 and ISO 22301) by obtaining
simultaneously THREE ISO CERTIFICATES, namely ISO
started since issuing a policy in 2009 that sharpen the
9001 Quality Management System (QMS), ISO 27001
application of GCG, particularly with regard to the GCG
Information Security Management System (ISMS) and ISO
implementation area, namely, code of integrity, business
22301 Business Continuity Management System (BCMS).
ethics, avoiding conflict of interests, prohibition on
gratuities, prohibition on transactions with the insiders,
maintaining confidentiality of information, prevention
of actions to enrich themselves or other party that
Corporate GovernanCe planninG
appliCation
Consistency to manage a good planning is one of the main
adversing financial company in the area of procurement
concerns of management in implementing GCG. At the
and partnership, service integrity and corporate financial
discretion of the Company, the management try to ensure
report integrity.
that the planning of the Company is performed with
more systematically, not complicated, orderly, integrated,
Initiatives to sharpen/strengthen GCG through Integrity
conformed with the vision and mission of the Company,
Pact policy, is still deemed necessary to give special
and can be carried out properly in accordance with what
attention to the specific areas related with the prevention
had been planned in advance; also, easy to evaluate and
of potential financial loss of the Company and for the
control during the execution later.
realization of “island of integrity” as one of the tools or
instruments of bureaucratic reform and prevention for
Generally, model of corporate planning consists of 3
Corruption, Collusion and Nepotism (CNN or “KKN”)
with the concentration of efforts on the creation of
transparency, accountability and participation.
(three) stages of planning, namely:
1. Conformation with stakeholder expectations.
2. The formulation of corporate strategy (strategic
formulation).
3. The implementation of business strategy.
291
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES GCG’s role is to guarantee and ensure that the entire
The other purposes of this decision are to increase the
process and planning activities can be well-performed,
effectiveness and efficiency of business processes of IT, IT
accountable, transparent and able to provide a sustainable
productivities, availability of information that is complete,
added value for the Company, and certainly, not contrary
comprehensive, accurate and punctual to support the
to the interests of all stakeholders.
management in decision making process, in order to
fulfill the business needs, improving performance and the
In order to constantly updating the development and
Company’s growth sustainable.
dynamics of the business and operations, the company
performs an update on the company’s planning policy
Governance
implementation
in
the
operational
through the Company’s Strategic Planning System
environment is performed by applying IT General Control
number. PD.105.00/r.00/HK.200/COP-D0030000/2014
(ITGC), which includes domain process of Program
dated January 28, 2014.
Development (PD), Program Change (PC), Access
to Programs & Data (APD) and Computer Operation
appliCation of it GovernanCe
As a company engaged in the business of information
(CO). Some examples of IT governance practices in the
operation of the Company are management of change
and customers’ data/information distribution whose
requests, management of user access review, password
security must be guaranteed, we always try to take
management, management of audit
log/audit trail,
advantage of the widest possible use of technology in
management of security systems, and management of
the management of the company as directly improving
the quality of implementation of corporate governance.
end user computing.
Almost all points in the value chain of the company, which
For completeness of IT governance policies, a several
includes network operation of the entire infrastructure of
other regulations have also been regulated, such as,
production tools, all important aspects of management
the Company’s Regulation with regard to security of
such as finance, logistics, human resources as well as
information systems, Standard User Access, Standard IT
services to the employees, customers, suppliers and other
Services (under ISO 20000 basis), Standard for IT Service
stakeholders, have been integrated into the IT network.
Continuity Management (based on ISO 27031), Standard
Framework for the management of IT governance refers
consideration on the security aspects (Secured Software
to the Control Objectives for Information and related
Development Life cycle) and other procedures related.
for Application Development of Information System with
Technology (“COBIT”) version 5.0, which adapted into the
company regulation under number PD 404.00/r.00/HK-
The Strategy and IT Governance Unit is the Company’s
200/COP-C0300000/2014 dated 15 July 2014 regarding
structural work unit which responsible to strategize and
Guidelines and General Policy of Information Technology
planning for the Company’s IT and the establishment of IT
Governance of Telkom Group which aimed, among others,
Governance of the Company, beginning from the policy,
to provide the controlling principles in the governance and
standards, as well as the socialization and implementation
management of IT that includes 5 (five) main principles as
process in practice with monitoring mechanism and
follows:
1. Compliance with the needs of stakeholders (meeting
the evaluation of the effectiveness of implementation.
Meanwhile, the management of the company’s
IT
stakeholder needs);
2. Covering the whole process of the company in end-
to-end basis (covering the enterprise end-to-end);
Implementation of a single integrated framework
(applying a single integrated framework);
3.
4. Overall pattern approach/holistic approach (enabling
a holistic approach);
5. The separation between governance and management
of IT (separating governance from management).
operations ia performed by IT management Unit, which
are, among others, is responsible for managing the
services and components of IT services, both in the sphere
of software and hardware, including the development of
IT services.
it audit
In ensuring compliance with IT governance, we performed
internal and external control. Internal unit in question
actively participate in ensuring the implementation of
One of purpose of this decision is to provide clear
the design of controls to operate effectively through
direction that the governance of Information Technology
the implementation of Control Self Assessment (CSA)
(IT) solely based on the creation of value (value
creation) which is based on the needs of the Company’s
Key Control (KC) ITGC attached to the unit periodically
by involving internal Quality Control unit. Furthermore,
stakeholders (stakeholder needs) by way of realizing the
Internal Audit and External Audit conducted an audit
business benefits (benefit realization), optimization in the
on the implementation of KC ITGC entire unit that
management of risk (risk optimization) and optimization
implements the KC.
in the management of resources (resource optimization).
292
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA
SMART ENOUGH
IS NOT ENOUGH...
DISRUPTIVE IS A MUST !
- ALEX J. SINAGA -
293
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES Through various consistent efforts across all layers of organization, which includes the phases of design, planning and
operation as well as monitoring, and with strong commitment of the management and all stakeholders, respectively
since 2010, has been able to maintain the achievement of Zero Control Deficiency in cycle/coverage of ITGC. This
achievement result reflects the implementation of IT governance through the implementation of ITGC in a company
which has been able to run effectively.
Zero
Cd
Cd
sd
mw
2010
2011
2012
2013
2014
Zero CD
(Control
Deficiency
Zero CD
(Control
Deficiency
Zero CD
(Control
Deficiency
Zero CD
(Control
Deficiency
Zero CD
(Control
Deficiency
implementation of e–proCurement
As a commitment to implement GCG and Integrity
Pact, to date, we continue to consistently manage the
development of human resourCes
CompetenCe
Changes in the business portfolio from Infocom to TIMES
procurement process and partnership with the use of
has implication on shift necessary competence. The
e-auction system through applications that minimize
competence and ability of human resources (“HR”) are
physical contact between the supplier/partner and the
a few of important element that must be considered in
committee due to the whole tender and negotiations
order to achieve GCG practices.
process have been conducted by computer basis that
takes place fair and transparent.
In the
implementation, knowledge management
is
focused on creating business value that generates
We do the selection of suppliers through three main
sustainable competitive advantage by optimizing the
stages, namely Registration of Suppliers where the
process of creation (acquisition), sharing and utilization
Supplier register online through the application of Supply
of knowledge as required by the company.
Management and Logistics Enhancement (“SMILE”),
followed by the Selection of Suppliers where we conduct
In order to support the process of managing such
assessment of the supplier in accordance with the
knowledge, we have been providing Knowledge
classification of the business and some other criteria
Management System named KAMPIUN, which is a data
that generating rank and short-list and determination of
bank (repository) as a medium for every employee to
Eligible Bidder, in which the suppliers that entitled or will
improve their insight and knowledge by uploading or
be involved to continue the procurement process.
downloading through the system, therefore, we expected
Some of the benefits that have been obtained, among
which in turn encourages the growth of productivity and
others, the timeliness of the tender process, determination
quality of work.
it would be a solution to the diverse problems of work,
of prospective tender participants which electronically
determined according to the requirements as specified,
electronically winner selection, and other benefits
associated with the process quality which is improving,
reasonable prices, fairness, transparency and preventing
any intervention.
294
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA The final goal of knowledge management is the creation
the tariff war which contributed to the decline in ARPU and
of a learning organization, which is a condition where
the decrease in the quality of service, complaints in invoice
the organization will remain operating without creating
and billing services, the phenomenon of pulses suction
dependence toward certain employees by projecting
and others. We use this feedback to evaluate and improve
itself into a knowledge based enterprise through a
the quality of our services and immediately respond to
transformation of Learning Center as a unit of learning
and follow up on any complaints of the customers and
with conventional methods into a Corporate University
the public because we commit to consistently prioritize
(“CorpU”), which is a vehicle for improving the competence
ethical business practices and provide customer service
that can support the business needs of the Company in
satisfaction to our customers and other stakeholders.
order to form a center of excellent human capital with
international standard in the TIMES industry that can
support the improvement of business performance and
the implementation of a new culture with the tagline
“from competence to commerce” which has a meaning
that any competent employees will advance the business.
siGnifiCant differenCes of GCG
praCtiCes in indonesia and nyse
standards
Kindly refer to the section of Management’s Discussion and
of significant differences between
the corporate
Analysis on Telkom Performance - Functional Overview -
governance practices in Indonesia and under requirement
The following are briefly outlines of the general summary
Human Resources for more detailed information on the
development of HR competencies.
by the NySE listing standards.
a. indonesian leGal review
ownership manaGement information
and intanGible asset
Any information and all intangible assets, including
Indonesian public companies are required to observe
and comply with corporate governance practices that
have been applied. The requirements and standards
research, technology, and intellectual property rights
of corporate governance practices
for public
earned by the assignment and/or at the expense of the
companies are regulated under the Limited Liability
company are reserved as the property of the Company.
Companies Law (the “Company Law”) No.40/2007,
We have a Regulation regarding the Management of
Law No.8/1995 on Capital Market (the “Capital Market
Intellectual Knowledge and Intellectual Property Rights
Law”), Law No.19/2003 on State-Owned Enterprises
in accordance with No.PD.605/2011. As the intellectual
(BUMN), Regulation of the State Minister of State-
properties are being protected and managed, it is
Owned Enterprises No.PER-09/MBU/2012 regarding
expected to increase income and sustaining a competitive
the Amendment of the Regulation of the State Minister
advantage. Creativity and innovations on the existing or
of State-Owned Enterprises No.PER-01/MBU/2011
new products and services are reserved as the assets of
regarding
Implementation of Good Corporate
the company. We manage the database which includes
Governance on State-Owned Enterprises, the FSA
creation, brands, industrial designs, inventions, trade
(OJK) Rules and the regulations issued by the BEI. In
secrets, copyrights, trademark rights, rights to industrial
addition to these regulations, the articles of association
design, patent and trade secret rights. The company
of public companies incorporate provisions aimed at
is routinely manage a wide range of activities which
the implementation of corporate governance practices.
are the intangible assets, such as innovation through a
portal: http://inovasi.telkom.co.id that can be accessed
On November 30, 2004, the Government established
by all employees.
followinG up on Complaints from
the Customer and Community
In conditions where the telecommunications business has
the National Committee on Governance Policy
(NCG or “KNKG”) under the regulation of the
Coordinating Minister for Economic Affairs No.KEP-
49/M.EKONOM/1/2004. The establishment
is a
form of revitalization of the National Committee on
reached a saturated point, the expectations of various
Corporate Governance (NCCG or “KNTKP”) which was
stakeholders presents a challenge in implementing GCG.
established in 1999. The purpose of the NCG/KNKG is
From time to time, customers and the general public
to improve the understanding and implementation of
have expressed their criticisms or complaints regarding
corporate governance in Indonesia and to advise the
industrial and telecommunication services, among others,
Government on matters related to the management
295
CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES
of data, both in corporate sector and in public. NCG/
The Company Law stipulates that the Board of
KNKG formulated the 2006 Code of Corporate
Directors is composed by at least two members,
Governance (the “Code”) which recommends a
each of which must meet the minimum qualification
more stringent corporate governance standards for
requirements set forth in the Company Law. In
Indonesian companies, such as the establishment
addition, pursuant to IDX Regulation No.I-A, it is
of the independent audit Committee, nomination
stated that at least one member of the Board of
and remuneration Committee by the Board of
Directors must be a non-affiliated member.
Commissioners, as well as an increase in the scope
of the disclosure obligations Indonesian companies.
C. Committees
Although the NCG/KNKG recommends that the Code
The NySE listing standards require that a listed
to be applied by the Government as a basis for legal
company in the U.S must have an Audit Committee,
reform, however, as of the date of the conclusion of
Corporate Governance Committee and Compensation
this annual report, the Government has not yet issued
Committee. Each of these committees must consist of
regulations that fully implement these provisions.
independent directors and is equipped with a written
b. Composition of independent
listing standards.
direCtors and Commissioners
The NySE listing standards require that the Board
The Company Law does not require Indonesian public
of Directors of companies listed in the U.S. shall be
composed of a majority of Independent Directors and
that particular Committee should be comprised of
companies to form any Committee as set forth in
the NySE listing standards. However, the FSA Rules
No.IX.I.5 and IDX Regulation No.I-A require the Board
charter that addresses the matters specified in the
Independent Directors.
of Commissioners of a listed public company (such
as Telkom) to form an Audit Committee comprising
Unlike companies incorporated in the U.S., Indonesian
at least three members, one of whom must be an
companies’ management consist of two institutions
Independent Commissioner and acts as chairperson of
with
the same status, namely,
the Board of
the Audit Committee. While the two other members
Commissioners and the Board of Directors. In general,
of the Audit Committee must be appointed from
the Board of Directors is responsible for routine
independent parties and at least one member must
business activities of the company and is authorized to
have an understanding of accounting and finance.
act for and on behalf of the company, while the Board
of Commissioners has the authority and responsibility
of overseeing the Board of Directors and based on
Indonesian Company Law, is mandated to provide
advice to the Board of Directors.
The NySE listing regulation which applied pursuant
to Rule No.10A-3 of Exchange Act requires a foreign
private issuer with shares listed on the NySE to have an
Audit Committee comprised of independent directors.
However, not all members of our Audit Committee are
With regard to the Board of Commissioners, the
independent directors as required by Rule No.10A-3
Company Law requires at least two members of
of the Exchange Act. Pursuant to Rule No.10A-3(c)
the Board of Commissioners are existed in public
(3) of Exchange Act, foreign private issuers may be
companies. Although
the Company Law does
exempted from the independence requirements if (i)
not regulate the composition of the Board of
the Government or the Stock Exchange of the home/
Commissioners, however, the Listing Regulation No.I-A
origin country requires that companies have an Audit
under KEP.305/BEJ/07-2004 issued by the Indonesia
Committee, (ii) the Audit Committee is separated from
Stock Exchange (IDX Regulation No.I-A) stated that at
the Board of Directors and has members from outside
least 30% of members of the Board of Commissioners
the Board of Directors, (iii) Audit Committee members
of public companies (such as Telkom) must be
are not elected by the management and no executive
independent.
296
officer of the company is a member of audit Committee,
(iv) the Government or the Stock Exchange of the
country of origin requires the Audit Committee to be
independent from the management of the company,
and (v) the Audit Committee is responsible on the
appointment, retention and oversight of the work of
external auditors.
PREFACEPT Telkom Indonesia (Persero) TbkFINANCIAL AND PERFORMANCE HIGHLIGHTSMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIA Not all members of our Audit Committee are
d. Code of ethiCs and business
independent directors as required by Rule No. 10A-3 of
the Exchange Act. We refer to the general exemption
pursuant
to Rule No.10A-3(c)(3)
regarding
the
composition of the Audit Committee. We believe that
this does not materially affect the ability of the Audit
ConduCt
The NySE listing standards require each listed
companies in the U.S. to adopt and to post on
their company’s website, the code of ethics and
business conduct for the Board of Directors,
Committee to act independently.
officials and employees.
d. disClosure in relation with
Corporate GovernanCe
The NySE listing standard requires the U.S. companies
to adopt and put on their website, the guidelines for
No similar requirement under the applicable Laws
in Indonesia. However, the company shall submit
periodic reports to the U.S. SEC, which stated the
implementation of the code of ethic by senior financial
the implementation of corporate governance. These
officials in the company.
guidelines, among other things, shall stipulate directors
qualification
standards, director
responsibilities,
relations between directors with management and
independent advisors, compensation for the directors,
orientation and continuing education for the directors,
management succession and annual work performance
evaluation. Moreover, each year, the CEO of the U.S.
company must certify to the NySE that he/she is not
aware of any violations committed by the company
with regard to the NySE corporate governance
standard listing. Certification must be disclosed in the
company’s annual report to the shareholders.
There is no disclosure requirement in the applicable
Laws in Indonesia that is similar to the NySE listing
standards described above. However, the Capital
Markets Law generally requires Indonesian public
companies to disclose certain types of information to
their shareholders and to the FSA (OJK), particularly
information relating to the change of ownership of
shares of public companies and material facts that may
affect the decision of shareholders to maintain their
stake in the said public company.
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CORPORATE GOVERNANCEPT Telkom Indonesia (Persero) TbkMANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL APPENDICES 298
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS 07
CORPORATE SOCIAL
RESPONSIBILITY
300 Telkom’s Social Responsibility Commitments
302
Telkom CSR Budget Allocation
303 Awards and Achievement of CSR Performance Based on ISO 26000
303 Activities and Programs of Telkom CSR
316
Partnership and Community Development Program (“PkBL”)
299
CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES TO BE A LEADER IN THE
IMPLEMENTATION OF CSR IN ASIA
TELKOM’S SOCIAL
RESPONSIBILITY
COMMITMENTS
Companies with Limited Liability status, according to
According to the Regulation of the Board of Directors,
the regulations, are obliged to carry out what is called
Telkom CSR Program consists of Partnership Program
Corporate Social Responsibility (“CSR”). As a corporate
(“Pk”), the Community Development Program (“BL”)
citizen, we can not be exempted from the requirement.
and CSR Public Relation (“CSR PR”), or activities outside
And to carry out these obligations we have formulated
the Partnership Program and Community Development
a policy and operational guidelines, which is the Board
Program (“PkBL”), Telkom CSR is based on Good
of Directors Regulation No. PD.701.00 / 1.00 / PR.000 /
COP-A3000000 / 2014 dated October 14, 2014 on the
Corporate Governance (GCG) and Good Corporate
Citizenship (GCC) and the principle of what is generally
Management of Telkom Corporate Social Responsibility
known by TARIF, stands for Transparency, Accountability,
(CSR Telkom).
Responsibility, Independence, and Fairness. Additionally,
300
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS we also adhere to the principles in ISO 26000, namely
Overall, the three main pillars of our CSR is then realized
accountability, transparency, ethical behavior, respect for
in a variety of program activities in seven areas, namely:
the interests of shareholders, legal compliance, respect to
(i) partnerships, (ii) general services, (iii) education, (iv)
the norms of international behavior and enforcement of
health, (v) culture and civilization, (vi ) the preservation of
human rights.
the environment, and (vii) disaster relief / humanitarian.
One of our commitment to implementing CSR is to
help develop the society’s quality of life in a sustainable
TELKOM CSR STRATEGY
We align our CSR strategy with the vision and mission and
manner. Therefore, we consider it necessary to create
business portfolio. In carrying out our CSR theme “Telkom
good and harmonious relations with the community.
Indonesia for Indonesia” we seek to achieve enlightened
VISION AND MISSION
In the field of CSR we have developed a Vision, to be a
society (“Enlightening Society”), i.e. people who obtain
welfare through a credible form of activities that are
based on three main pillars of CSR. To achieve that, we
leader in the implementation of CSR in Asia. To achieve
developed the following three things, namely:
this vision, we have developed several strategic concepts
as follows:
• Cause promotion. Increasing awareness and concern
Digital Environment
We realize the concern for the environment by providing
for the community to donate time, money or materials
and managing telecommunications infrastructure as well
for a specific social purpose.
• Cause related marketing. Invites the public to use
as various Information and Communication Technology
(“ICT”) facilities to support and connect the entire
Telkom’s products, and the Company’s future profits
community activities, including in the framework of
will be donated to help overcome or prevent a
environmental conservation in the said area or emergency
particular problem.
care during natural disasters.
• Corporate social marketing. Changing people’s
behavior in certain issues, such as health issues,
environment, and safety.
Digital Society
We also empower the appropriate current global trends
• Corporate philanthropy. Contribute / donate directly
with advances in ICT, through education about the
to those in need.
optimal use of ICT to facilitate activities in daily life.
• Community volunteering. Encouraging and supporting
employees to contribute time and energy to engage in
CSR activities.
Digital Economy
We actively work together to provide ICT facilities in
• Socially responsible business practice. The Company
a wide range of public services that are used by the
accept and abide by social norms of doing business.
community, and supporting micro, small and medium
PURPOSE OF TELKOM CSR
The purpose of Telkom CSR is to support the business
enterprises, especially in the creative industries sector,
associated with the use of ICT.
continuity of the Company by implementing sustainable
development in the economic, social, and environmental
LEGAL BASIS AND POLICY
In Indonesia, the implementation of Corporate Social
aspects, involving Telkom Group employees and society
Responsibility is stipulated in Government Regulation
based on three main pillars (triple bottom line), which is
(“PP”) No. 47/2012 on Social and Environmental
planet, people and profit.
Responsibility Of Limited Liability Company, which is
• Planet. Company takes into account and preserves
the implementing regulation of the provisions of Article
nature and the environment
in each of the
74 of Law No.40 / 2007 on Limited Liability Company.
Company’s operation.
Thus PP No. 47/2012 becomes the foundation for us in the
• People. The company creates
reliable human
development and implementation of CSR programs, both
resources
in community empowerment through
inside and outside the company.
community development.
• Profit. The company not only pursue profits but also
the expected economic empowerment of the people
in their vicinity.
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CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES
SCOPE OF TELKOM CSR
The scope of activities of Telkom CSR is prioritized in
• Take an active role in enhancing the ability of SMEs to
be strong and independent.
three areas, namely social, environmental, and economic.
Take an active role in supporting the development of
digital creative industry
1) The scope of activities in the social
aspect:
•
Improving the quality of public education and providing
education facilities and infrastructure.
The scope of activities of Telkom CSR program can
include a variety of things, but not limited to the activities
referred to in point 1), 2) and 3) but may also be used for
• Preserving and fostering religion, culture, art and sport.
other activities that support the business of the Company
• Support the preservation of national culture and
with reference to the laws and regulations that apply.
civilization.
• Support the improvement of public health conditions.
2) The scope of activities in the
environmental aspect
• Take an active role in the humanitarian aid and
natural disaster.
• Actively participate in environmental preservation
activities.
3) The scope of activities in the economic
aspect
• Empower the community, and improve the skills,
ORGANIZATION GOVERNANCE
Telkom CSR governance is divided into two, namely the
CSR PR and PkBL Program. Telkom CSR PR strategies
and policies becomes the authority of sub Corporate
Communication Department, while PkBL unit is under the
authority of Community Development Center (“CDC”).
Furthermore, we manage the implementation of policy
and operational functions of Telkom CSR as follows:
• Determination of Telkom CSR policies is the duty of
Telkom CEO which in the implementation of operations
is carried out by the CDC unit and Sub Department of
Corporate Communication.
knowledge, and attitude which have an impact on the
•
In the implementation of its operations, the CDC and
Company’s business.
Sub Unit Corporate Communication Department can
• Provide added value to stakeholders (customers,
coordinate with Work Unit and related subsidiaries.
suppliers, shareholders, regulators, employees and
family, community or society) that is aligned with the
Company’s program.
• Take an active role in the provision of facilities and
infrastructure of information and communication (ICT)
to the public, by providing facilities and infrastructure
for easy access to information and communication.
TELKOM CSR BUDGET
ALLOCATION
According to the Regulation of the Board of Directors
No.PD.701.00 / 2014 dated October 14, 2014, CSR
Telkom source of funds is from the Company’s operating
expenses, listed as the CSR budget.
Budget Allocation
Source of Fund (Rp billion)
2015
2014
2013
Telkom CSR (PR)
18.29
23.31
38.24
Aligned with the vision and mission to become a major player of TIMES regionally and globally, we recognize the
importance of the use of ICT for the advancement and improvement of public welfare. We understand our strategic
position in Indonesian society. Utilization of our competence can bring Indonesia towards a better direction. Our
products and services can educate the nation. As a corporation that serves millions of customers throughout Indonesia,
we actively participate in the form of corporate social responsibility program.
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
AWARDS AND
ACHIEVEMENT OF CSR
PERFORMANCE BASED ON
ISO 26000
CSR AWARDS IN 2015
In 2015, Telkom CSR activities successfully achieved a
number of awards for the seven focus areas Telkom CSR,
which is awarded by the Corporate Forum for Community
Development in the Indonesian CSR Award 2015 event.
Details of the said awards are listed below:
• Sustainability Reporting Award.
• The best company in the management of human capital
in the Indonesia Human Capital Study Award 2015.
• Social Business Innovation Award.
• Sindo Weekly CSR Award 2015.
Policy
Commitment to be environmentally responsible
is
mentioned in Circular No.ED.130 / PS000 / HR 20/2008
on Efficiency Measures
in Creating Savings
in PT
Telekomunikasi Indonesia Tbk, which we implemented
through a variety of programs, both in internally and in
society. The environmental impact arising from operations
of the Company will be kept as low as possible and we are
responsible for such effects.
Program Types
We try to do a variety of programs related to
environmental conservation which are summarized in the
Telkom Go Green Action program, which includes efforts
to mitigate carbon emissions, energy efficiency of office
buildings, BTS energy efficiency, use of renewable energy,
the concept of the paperless office, waste management,
management and recycling of water, bike to work, and
• Corporate Image Award with the category of
best Telecommunication Company and best
earth hour.
Internet Provider.
• Award for telecommunication category with grade I in
Excellence Service Experience Award 2015.
ACHIEVEMENT OF CSR PERFORMANCE
BASED ON ISO 26000
Our commitment in CSR has been proved successful
to get recognition from various parties, including from
independent parties, which bestows the Grand Platinum
Carbon Emission Mitigation Efforts
We have not specifically performed the calculation of
the carbon footprint of our operations. However, since
2009 we have conducted a series of initiatives which are
consistent and focused efforts to reduce electrical energy
consumption in our operations. Thus, we contribute to the
mitigation of carbon emissions (CO2), remembering the
electricity produced from plants using conventional fossil
fuels (coal and oil) and a source of carbon emissions into
award in the Indonesian Corporate Social Responsibility
the atmosphere.
Award (ICA) event in 2015. This award is not only a proof
of recognition from external parties, but at the same the
achievement of performance of Telkom CSR based on
ISO 26000.
ACTIVITIES AND PROGRAMS
OF TELKOM CSR
Our CSR programs are implemented with the responsibility
of the Company based on four areas:
1) social responsibility for the environment.
2) responsibility
for employment,
safety, and
working welfare.
In doing so, we are implementing our equipment with
high efficiency and new technologies that are more
environmentally friendly, among others:
• The use of AC inverter technology, through retrofitting
fluid system and thermodynamic air conditioning
system with Articmaster, and replacing the use of
Freon in air conditioners with hydrocarbon refrigerant.
• Replacing the fluorescent lamp with LED lights that
have high levels of electrical efficiency of up to 90%.
•
Installation of capacitor banks at our STOs to reduce
energy waste due to reactive power.
• Replacement of TDM switching device switches to soft-
switch devices that consume less electricity, dissipates
3) obtain any social responsibility for society’s social
less heat, and occupies less physical space.
• Replacement of rectifier device from the linear-mode
type to the switch-mode type that requires less energy
with higher conversion efficiency rate.
development.
4) responsibility to the customer.
TELKOM’S RESPONSIBILITY TO
ENVIRONMENT
We realize the importance of maintaining environmental
sustainability. As such, we constantly try to minimize
negative
impacts to the environment caused by
operational activities as well as community activities in
general. We also actively support national programs
related to environmental preservation.
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CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES
• Construction and operation of green data center that
and devices operating schedules in order to minimize
puts the zero depletion refrigerant (no-CFC), zero
the wasting of electricity consumption.
depletion FAP (N2 100% natural gas), environmentally-
• Provide ongoing and continuous socialization to all
friendly material (unleaded), and energy efficient (LED
building occupants about saving energy, including
lamps and cooling system management).
the placement of warning signs and stickers in various
In addition to supporting efforts to mitigate carbon
electricity and water.
emissions, a range of initiatives to conserve electrical
• Utilization of zoning lighting scheme to enhance the
energy consumption also has an impact on savings in
efficient utilization of energy, namely by differentiating
operational costs and maintenance expenses, and reduce
the ignition area lighting needs, so as to save energy.
down time due to failure of the air conditioning system.
•
Installation of a timing device (timer) on the lighting
strategic locations to remind employees to save
outside the building.
Office Building Energy Efficiency
• Energy systems in Telkom office buildings have been
made even more efficient. Various strategic measures
were applied, among others:
BTS Energy Efficiency
Significant energy savings also come from the use of BTS
outdoors at all BTS Telkom Flexi and Telkomsel locations.
• The use of capacitor banks to improve power factor,
Outdoor BTS are smaller than indoor ones and does not
comply with the PLN provisions on kVAR limitation,
require housing and cooling.
and reducing wasteful use of electricity due to the
magnitude of the apparent power of capacitive
loads. In 2014, we have carried out a series of trials in
Utilization of Renewable Energy
Mitigation of carbon emissions has been significantly
cooperation with PT EXCELINDO Chandra Mulia (holder
done through changing patterns of energy consumption
of Top Saver 2000 brand), and has implemented the
from non-renewable energy to renewable energy, such as
use of saver on the non-inverter to suppress the loss
the use of solar, water and wind energy. Although small in
of the use of electric current and will continue in the
scale, we have started to implement “carbon free” concept
coming year.
for some operations. By using solar cells as energy for
•
Installation of reflective glass with thickness of 6 mm
base stations, we can reduce carbon emissions up to
to reduce heat entering, so the use of air conditioning
961.39 tons of CO2 annually. Telkomsel became a pioneer
will be more economical and efficient. A series of tests
in the use of base stations that use renewable energy from
have been carried out in cooperation with PT Energi
solar energy, micro-hydro, and low power consumption,
Indonesia as the brand holder of Sadean Reflecto
and has operated thousands of environmentally friendly
Coating for Building regarding the use of coatings,
BTS.
namely coatings of outer glass walls / windows of the
building, which serves to transmit light, but forwards
We have also implemented renewable energy for locations
little to no heat.
on the islands and other urban areas that are still using 7
• Replacement of conventional lighting with LED lighting
x 24 hours generator power source, such as through the
to save energy and environmentally friendly, because it
use of a hybrid power plant that combines solar cells and
no longer uses mercury.
wind power. The use of renewable energy in the form
• Retrovitally replacing AC chiller with modern and
of a hybrid power plant is expected to achieve savings
energy-efficient
technology, based on building
of electricity usage charges, maintenance expense and
automation system (BAS), thus efficient operationally
burden of fuel consumption up to 98%, while 2% of fuel is
by the operator and also using environmentally friendly
still required for generator maintenance purposes.
refrigerants. Implementation of this program began in
mid-2013.
• Strict and precise implementation, without disturbing
Paperless Office Concept
Another effort in mitigating carbon emissions is to apply
the comfort and safety of building occupants, lighting
the concept of paperless office. We have applied this
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS concept through online memos applications since 1998 in
several units and have been implemented nationally. Since
Bike to Work
In order to promote healthy living and mitigate carbon
this concept has been implemented, management made
emissions simultaneously, we urge employees to bike to
budget cuts on paper purchasing policy significantly. With
work every Friday. This recommendation was issued in
a minimum use of paper, we have reduced the amount of
2009 and its implementation is responded well by most
paper waste.
employees by 2014. We expect this will become a habit
that is part of the “Bike to Work” national movement and
Currently, all of our units have been using memos
shall be entrenched among employees.
application online for delivery in our internal memos.
During 2014, a letter memo made by the entire unit
via the online memo application amounted to 294,563
Earth Hour
Regularly every year we participated in the “Earth Hour”
units. Assuming an average of one memo consist of two
which is promoted by WWF, aiming to preserve the
(2) copies and addressed to three (3) the recipient and
environment by reducing the consumption of electrical
then each forwarded to 3 (three) people, then by using
energy. This activity is carried out by a power outage
the online memo app, we had saved as many as 10,604
during one hour on Saturday, the fourth week of March
reams of paper or the equivalent Rp424,170,720 (based
each year at 20:30 until 21:30.
on average paper price in 2014).
We also educate employees and customers in applying
these concepts, among others, in terms of issuing
Jakarta River Fest
Telkom participates in the Jakarta River Fest event in the
river cleaning action in Jakarta with a contribution of 50
electronic bills, bill payments centrally through teller,
million Rupiah.
Automated Teller Machine (“ATM”), phone banking,
internet banking, mobile banking, and auto debit.
Management of Trash and Dangerous and Toxic
Waste
Waste management is done with local Sanitation Office.
Certification in the Environmental Aspect
By carrying out the mission of being a high-quality
TIMES service providers with competitive prices as well
as a model of best corporate management, we must also
pay attention to environmental control, safety and good
Routine supervision is conducted in order to reduce the
working health. To meet government regulations in terms
amount of garbage scattered. We are also carrying out
of implementing SMk3, in 2014 Telkom and its subsidiaries
waste management and disposal responsibly throughout
have obtained SMk3 certification.
the operational offices.
Management and Utilization of Recycled Water
Water is vital for human life and plays an important role
in the preservation of the ecosystem. Therefore, we
have a strong commitment to be responsible for the
TELKOM RESPONSIBILITY FOR
EMPLOYMENT, OCCUPATIONAL HEALTH
AND SAFETY
management and use of water.
Employment
Our water consumption is relatively low which is used for
building operations and drinking purposes of employees
Policy
We direct the management of human resources in order
which is majorly supplied by the Regional Water Company
to realize the vision, mission, objectives of the Company
(PDAM). We have carried out a strategic step in the
(sustainable competitive growth), and human resource
management of water with the installation bio-pores and
management objectives. Target of HR management
containers of water around the office building to collect
is to establish great leader and great people with a
rain water and process water recycling is simply done
productivity of employees above productivity standards
using charcoal-based filtration. Recycled water is used for
in the telecommunications industry and the high level
washing operational vehicles and watering plants in the
of engagement in running the Telkom Group’s business
office yard.
portfolio which is increasingly focused on TIMES. We
are also working to improve synergies and efficiencies in
the Company’s internal circles which are all employees
of Telkom Group to continue to emphasize the
implementation of the set Company values.
305
CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES Law No. 13 Year 2003 on Employment and Labour Agreement (“CLA”) between the management and union employees,
becomes a reference throughout the employment policies to ensure compliance with applicable laws and minimize the
occurrence of violations of human rights in the employment relationship.
Program Types
Industrial Relations Management
Referring to the Presidential Decree No. 83 of 1998 on the Ratification of ILO Convention No. 87 of 1948 concerning
Freedom of Association and Protection of the Right to Form Organization, some employees of Telkom established
“Telkom Employees Union” or “Sekar”. Until December 31, 2015, Sekar consisted of 14,472 employees or 89.9% of total
employees with working status in Telkom and employed in the JVC. To avoid potential conflicts that occur in the next
CLA negotiation, management increases the role of LkS Bipartit (unknown English translation) which is conducted
once a month.
HR Recruitment
Our HR Recruitment is done through internal and external recruitment. Internal recruitment is done by optimizing the
resources that have been owned through synergies in Telkom Group in order to achieve efficiency in employee turnover
costs and obtaining the best candidates according to needs and simultaneously facilitating career development for
existing employees. External recruitment is focused on hiring professionals to fill positions where the competence is
not possessed by existing employees, as well as recruiting fresh graduates to fill the positions left by employees due
to retirement, improving the composition of employees in terms of education, age and stream (Company function).
HR Recruitment
Total (persons)
2015
387
2014
224
2013
206
2012
30
2011
53
2010
127
Competence Development
HR competence development is done through training and education that focuses on competence change and
competence development, both directly and indirectly related to the business strategy and operations. In addition, we
also organized various improvement programs and competency training for its employees who are currently managed
through the establishment of CorpU. Here is the amount of training conducted in the last five years. In 2015 Corpu has
graduated as many as 187 people for certification. SUSPIM program has held 10 courses, and has approved as many as
408 people. Regular training has been carried out as many as 928 programs with participants as many as 17,424 people.
Competence
Development
2015
Total of Training
928
2014
1,191
2013
1,261
2012
774
2011
650
2010
826
Employee Remuneration
We provide competitive remuneration package for employees consisting of a monthly salary, allowances and facilities
such as housing, pensions, health, and others. In appreciation to the employees, Telkom adopted a total rewards
philosophy that is communicated widely and effectively to employees. Total reward philosophy is based on the
foundational reward, reward performance, as well as career and environmental rewards. In this concept, the appreciation
is not only given to employees in the form of remuneration, but also certainty in pursuing a career ladder and balance
in work and personal life (work life balance).
However, to ensure that Telkom remuneration is competitive in the industry, Telkom regularly follows salary surveys and
make adjustments. Value of remuneration provided by the Company in the last five years is as follows:
306
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Employee Remuneration
Total paid (Rp billion)
2015
11,874
2014
(Restated)
9,787
2013
9,733
2012
9,786
2011
8,555
Healthcare Services
We provide health services managed by Yakes for employees and immediate family dependents. We hope that health
services had a positive impact on improving the productivity of the Company. To determine the health of our employees,
we organize medical check-up every year, which results in health status.
In addition, we also issued a policy of healthy living paradigm. As for health insurance, we provided all employees who
have retired, including dependent relatives in the two types of funding, which is for employees who are appointed as
an employee prior to November 1, 1995 and has a service life of more than 20 years, eligible for the guarantee of health
care managed by Yakes Telkom, and for all other employees, the healthcare services in the form of insurance benefits.
For the employees of its subsidiaries, we provide health benefits through a health insurance program sponsored by the
government, known as the Workers Social Security (Jamsostek), which is now called the Social Security Agency (BPJS)
and the Financing Agency and Health Insurance (BPJk).
Total expenses we spent on health insurance for employees in the last five years can be seen in the following table.
Employee Healthcare Service Costs
Total (Rp billion)
2015
174
2014
153
2013
162
2012
150
2011
121
Pension Program
We had two pension schemes, which are Defined Benefit Pension Plan (“PPMP”) which is intended for permanent
employees hired before July 1, 2002 and Defined Contribution Pension Plan (“PPIP”) that apply to other employee. Here
is the cost of pension program in the last five years:
Expenses for Retirement Program
PPMP (Rp billion)
PPIP (Rp billion)
2015
Nil
7
2014
Nil
6
2013
182
6
2012
186
5
2011
187
5
Employee Award
Routinely, we show appreciation to employees and units that excel in supporting the achievement of the Company’s
business targets. The award is intended to motivate employees to contribute better in the upcoming period.
307
CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES The following table shows the top performers who received appreciation in 2015.
Award Type
Medal of the Indonesian President
Best Telkom ROSE at WITEL Level
Best Forum AM Telkom Group
Best Staff / Officer at the Indonesian border
Individual Champions and CoP
Best Innovation Indihome
Best Innovation Non Indihome (CAT)
Asian-African Summit
Ramadan and Eid Posts Reward
FTTH Office Competition Reward
Special Innovation Works
Total
Note
11
5
204
6
8
38
45
357
66
24
17
External Reward
Unit Reward
Individual Reward
Individual Reward
Individual Reward
Group and Individual
Group and Individual
Individual Reward
Individual Reward
Group and Individual
Group and Individual
Employee Turnover Level
Turnover rate of employees leaving the company for various reasons, among others, voluntary resignation, becoming
a political party official, appointed as official either within the Company, its subsidiaries or government, breaches of
discipline, married with Telkom employees.
Total of Telkom Employee (people)
Total Employee Turnover
Voluntary resignation
Becoming political party official
Becoming SOE Director/Government
Official
Discplinary violation
Married with Telkom employees
2015
16,097
2014
17,279
2013
17,881
2012
19,185
2011
19,780
2010
21,138
8
8
-
1
2
-
20
17
-
-
1
2
14
14
-
-
-
-
22
10
-
12
-
-
12
12
-
-
-
-
10
10
-
-
-
-
Percentage of Turnover (%)
0.07
0.12
0.08
0.11
0.06
0.05
Gender Equality and Work Opportunity
We do not have internal policies regarding labor that distinguishes its application based on gender. All regulations in
the Telkom Group are applied consistently and equally to all employees regardless of gender. Similarly, the employment
opportunities offered applies to all employees, of which there are positions that do not include qualifications that
differentiate by gender. Qualifications which have been applied for all positions (position requirement) simply require
education and competencies (soft skills and hard skills). Matters related to the rights of employees (compensation,
benefits, career development opportunities and competence, working time, working facilities) and obligations of
employees applies equally to all employees regardless of gender.
308
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Health and Safety at Work (K3)
• Training of k3 Type C Fire
• First Aid Training (P3k)
Policy
Since 2009, the main objective of the management of
• Training and Simulation of Flood Evacuation of
Telkom Group Jabodetabek in Sunter, North Jakarta in
Health and Safety at Work (“k3”) in Telkom focuses
cooperation with kolinlamil.
on achieving a zero accident rate. This program is
• Socialization of Work Safety and Health Management
held based on labor legislation and k3 rules by local
System (SMk3)
Department of Labor as well as our evaluation and
will be assessed every year. Telkom’s commitment to
Emergency Response Simulation in 2015 :
realize the security and safety in the work environment,
Witel Nangro Aceh Darussalam
: November 9, 2015
realized through the Company’s policy set out in the
Witel Riau Islands (RIkEP) Batam : August 18, 2015
Decision of the Board on Policy Establishment on the
Witel Riau Mainland (RIDAR)
Enterprise Security and Safety Governance No.kD.37 /
Pekan Baru
: August 25, 2015
2010 dated October 26, 2010.
Witel Lembong Bandung
: October 16, 2015
Program Types
Starting from the year 2013 to 2015, we have conducted
various k3 activities, among which are:
Training on Work Safety:
• Fire Disaster Emergency Response Simulation in Witel
of North Jakarta, Bogor, Palembang, Medan, Malang, at
Gatot Subroto GMP Building, Jakarta
• k3 Seminar organized jointly by Telco k3 Network
• Training in Basic Life Support (BLS)
• Training of k3 Electrical Expert
Witel South Jakarta
Witel West Jakarta
GMP Jakarta
Witel Yogjakarta
: October 9, 2015
: November 25, 2015
: December 16, 2016
: December 29, 2015
Zero Accident Program
The program is organized based on labor legislation and
k3 rules of local Department of Labor and evaluated and
will be assessed every year. Our commitment to realize the
security and safety in the work environment is embodied
in the company’s policy which is set out in the Decision
of the Board on Policy Establishment on the Enterprise
Security and Safety Governance.
Location
Telkom Witel West Java, Northwest (Bekasi)
Telkom Witel West Java, West (Bogor)
Telkom Witel West Jakarta
Telkom Witel South Jakarta
Telkom Witel East Jakarta
Telkom Area North Jakarta
Telkom Area Tangerang
Telkom Regional Sumatera
Telkom Regional West Java
Telkom Regional Central Java
Telkom Regional East Java
Telkom Regional kalimantan
Eastern Region of Indonesia (kTI)
Telkom GMP Bandung (Japati)
Telkom GMP Jakarta
Telkom Area Central Jakarta
Witel Riau Islands (RIkEP) Batam
Witel Riau Mainland (RIDAR)
DIY
East Maluku
Safe Work Hours
2015
2014
3,591,120
3,148,888
8,666,697
2,181,146
4,265,880
2,458,200
1,114,848
2,048,184
2,483,192
3,204,192
13,848,352
5,171,923
7,017,171
1,704,260
1,738,720
2,207,095
2,683,906
8,884,232
5,160,189
1,589,177
10,828,032
9,152,000
2013
1,638,569
2,143,736
2,503,164
1,592,892
4,077,024
2,269,530
3,834,832
2,012,569
2,094,151
2,044,573
2,041,061
4,471,856
5,092,684
8,186,134
3,740,736
3,679,508
3,809,288
8,671,826
2,025,063
3,404,798
4,086,952
4,471,856
5,412,640
3,600,280
13,749,318
3,809,288
1,373,696
889,904
6,971,000
3,204,992
309
CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES
SMK3 Online Application and Safety Care Online
Online SMk3 application development which
is
in
West Java, Witel West Java West (Bogor), Witel East
Java South (Malang), Telkom Regional 1 Sumatra (Medan),
accordance with Government Regulation No. 50 of
Witel South Sumatera (Palembang), Witel North Jakarta.
2012 can be accessed by all employees consisting of
SMk3 measurement criteria. This application can be
Submission of Safe Work Hours Audit 2016 to the local
used for activity monitoring, evaluation, and online
Manpower Office as much as 18 office location consists
analysis thus simplifying and speeding up the process of
of GMP Telkom Regional-1, West Sumatera (Medan),
implementation and updating of information nationally.
North Sumatra East (Pematangsiantar), West Sumatra,
Nanggroe Aceh Darussalam, GMP Jakarta, Central
Online safety care application is a means to raise
Jakarta, South Jakarta, West Jakarta, East Jakarta,
awareness of employees related to aspects of k3 at each
North Jakarta, Banten East (Tangerang), Banten West
work location, for example, to inform the conditions at the
(Attack), West Java North West (Bekasi), West Java
job site which may risk the continuity of the k3 so that it
West (Bogor), GMP Treg West Java, West Java Central,
can be followed up. The solution is with the performance
(Bandung) South West Java (Tasikmalaya), West Java
of the findings and close mitigation.
North (Falkirk), West Java East (Cirebon), GMP Treg
Java, Central North, DIY Yogyakarta, GMP Treg Java,
SAS portal applications is to publish k3 activity that is
Surabaya-Madura, Malang, South Bali (Denpasar),
accessible nationwide, with contributors to the person in
South kalimantan (Banjarmasin), South East kalimantan
charge of SAS nationally.
Received award in the K3 aspect (Zero accident)
Awards received in the field of k3 (Zero Accident) from
(Balikpapan), West East kalimantan (Samarinda) and
West kalimantan (Pontianak), GMP Treg Witel Sulawesi
and South Sulawesi (Makassar).
Ministry of Manpower and Transmigration since January
Ministry of Manpower and Transmigration award
1, 2009 until December 31, 2013 to our 13 office locations.
Directorate General of Labour Inspection audit result k3
Awards received in the field of k3 (Zero Accident) from
management system which have earned “Assessment
Banten Governor since January 1, 2009 until December 31,
Level: Satisfactory” for Advanced category for the area
2014 to Telkom Area Tangerang.
of Telecommunications in Central Jakarta, South Jakarta,
Banten East (Tangerang), Riau (Pekanbaru), and the Riau
Awards received in the field of k3 (Zero Accident) from
Islands (Batam).
the Mayor of Bogor since January 1, 2014 until December
31, 2014 to Telkom Witel Jabar West (Bogor)
SMK3 Internal and External Audit
To ensure that the Company has set goals, objectives
Awards received in the field of k3 (Zero Accident)
and k3 programs to meet the k3 policies that have been
from the Ministry of Manpower and Transmigration
set, Telkom routinely conducts Internal Audit SMk3
since January 1 until December 31, 2014 a total of 17
every year. This audit is conducted on the whole area
locations Telkom Regional-2 Jabodetabek, Witel Central
include West Jakarta, South Jakarta, Central Jakarta, East
Jakarta, Witel North Jakarta, Witel South Jakarta, Witel
Jakarta, North Jakarta, Bekasi, Bogor, Tangerang and
East Jakarta, Witel West Jakarta, Witel Riau Islands
other Regional Division based on sampling (West Java /
(Pekanbaru), Telkom Regional 4 Central Java, Yogyakarta,
Witel Yogyakata, GMP Headquarters Jl. Japati Bandung,
Witel West Java Central Bandung, Telkom Regional 3
Lembang, East Java / Malang, Central Java / Semarang,
Sumatera / Terrain, kTI / Bali).
Audit Internal SMK3 in 2015
No
WITEL/ Regional
Location
Date
Result (%)
1
2
3
4
5
6
7
Central Jakarta
East Jakarta
South Jakarta
West Jakarta
North Jakarta
STO Gambir, Witel Building and
Plaza
April 7 – 8, 2015
Jl. DI Panjaitan
April 21 – 22, 2015
Jl. Sisingamangaraja
May 5 – 6, 2015
Jl. Letjen S. Parman
Jl. Yos Sudarso
April 14 – 15, 2015
April 28 – 29, 2015
Witel West Java North
Jl. Rawa Tembaga Bekasi
May 12 – 13, 2015
Witel West Java West
Jl. Ahmad Yani
May 19 – 20, 2015
8.
Witel Banten East
BSD Business Complex
May 26 – 27, 2015
88.55
88.55
95.18
90.96
93.37
88.55
94.58
89.16
310
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS No
WITEL/ Regional
Location
Date
Result (%)
9
10
11
12
13
14
15
16
Witel Banten West
August 25 – 27, 2015
GMP Jakarta
Jl. Gatot Subroto Jakarta
May 19 – 20, 2015
Witel Riau Islands Batam Jl R Suprapto SH
September 07 – 09, 2015
Witel Riau Mainland Pe-
kanbaru
Jl Jend Sudirman
September 07 – 09, 2015
Witel West Java Central
Jl Lembong 10-11 Bd
August 25 – 27, 2015
Treg-3 offices in West
Java
GMP Japati
On-Desk
National Score
Jl Supratman Bd
August 25 – 27, 2015
Jl. Japati No 1 Bd
August 25 – 27, 2015
46 WITEL + 5 TREG
November 23, 2015
89.16
91.57
90.36
89.75
87.34
87.34
89.75
18.00
85.76
SMK3 External Audit 2015
No WITEL/ Regional
Location
Date
Result (%)
STO Gambir, Witel Building & Plaza
October 21- 23, 2015
87.90
Central Jakarta
South Jakarta
Witel Banten East
komplek Niaga BSD
Jl. Sisingamangaraja
November 4 – 6, 2015
October 18 – 20, 2015
93
90
Witel Riau Islands Batam
Jl Jaksa Agung R Suprapto SH Sekupang. November 12 – 13, 2015
94.5
Witel Riau Mainland Pe-
kanbaru
National Score
Jl Jend Sudirman Pekanbaru
December 2 – 4, 2015
90
91.08
1
2
3
4
5
To ensure that the criteria in SMk3 has been implemented in the field and received recognition from related external
agencies, the SMk3 external audit is conducted in five locations: Witel South Jakarta, Central Jakarta, Banten East
(Tangerang), Riau Mainland (Pekanbaru) and Riau Islands (Batam).
Extracurricular Activities Funding Assistance
We provide financial support for extracurricular activities related to sports, arts, freedom of association and assembly
in the amount of Rp5 billion.
Financial Impact of Activities
In the last three years, the cost of which we spend on activities related to the k3 is as follows.
Cost of k3 activities (Rp billion)
2015
3.1
2014
8
2013
2
TELKOM RESPONSIBILITY FOR SOCIAL DEVELOPMENT AND COMMUNITY
As one of the largest state-owned enterprises in Indonesia, we have two great responsibilities. First is to increase
profitability in order to improve the welfare of the State. The second is carrying out the responsibility of social and civic
development.
This program targets people’s economic activities, whether related directly or indirectly with our main business,
with the aim to develop a harmonious relationship with the community as well as providing a real contribution to
a welfare society.
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CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES Policy
Referring to the Board of Directors Regulations No.PD.701.00 / 1.00 / PR000 / COP-A3000000 / 2014 dated October
14, 2014, we conducted our Partnership Program and Community Development Program and various CSR initiatives
related to Community Development.
Program Types
Community Social Aid Fund is used for a variety of public facilities development including for natural disasters,
education / training, public health, public facilities, places of worship and nature conservation.
Telkom Smart Campus (TeSCA)
TeSCA is a self-assessment program of national universities initiated by Telkom through the Corporate Social
Responsibility (CSR) program support in order to measure the utilization of Information and Communication Technology
(ICT) in order to improve the quality of higher education.
TeSCA was first implemented in 2008 and is still in progress, this program initiated by PT Telekomunikasi Indonesia
Tbk in collaboration with the Directorate General of Higher Education (Dikti) Ministry of Education and Culture,
Technology Council and the National Communications (DeTIkNas), and the Association of Higher Education for
Computer Science (Aptikom).
The results of the self-assessment program can be accessed online through the TeSCA website (www.
tescaindonesia.org).
Tesca Award 2014
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Telkom Group Berbagi 2015
In order to enliven Ramadhan and Eid 1436 H, Telkom
presents a variety of activities with the name Telkom
Group Berbagi Program. Through the theme Light
For You To Hold the World, Telkom Group as a
telecommunications company with a TIMES business
portfolio wants to use the momentum of Ramadan to
share to the people of Indonesia.
Telkom Group Ramadhan event in 2015 consisted of a
wide range of activities, which are as follows:
• Assistance to 5,000 orphans.
•
Providing assistance to a number of ICT devices to
Orphanage and Digital Boarding School.
•
Provision of facilities for 1,000 SMEs to be able to
Telkom Berbagi 1,000 bags of blood
compete on the global stage through the sharing of
business activities and development of SMEs Digital
Village program.
In addition to providing assistance, Telkom’s Group
organized affordable market by preparing 12,000 food
packages simultaneously in 18 cities in Indonesia as
part of a SOE synergy to build the country. Besides,
through the Employee Volunteer Programme (EVP),
TelkomGroup employees collect and donate 1,000 Al-
Qur’an manuscripts and 1,000 veils for prayer rooms
and mosques
in TelkomGroup office environments
throughout Indonesia.
Related with these activities, Telkomsel provides 20
tons of dates to 8 large mosques in Indonesia (Banda
Aceh, Medan, Jakarta, Surabaya, Semarang, Makassar,
Sorong and Mataram). As a form of humanitarian care,
TelkomGroup also arranged the supply of 1,000 bags
of blood which will be submitted to the Indonesian
Red Cross.
Telkom Berbagi
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CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES BUMN Hadir untuk Negri
BUMN Hadir untuk Negeri is a form of tribute and
In addition to the main activities mentioned above, for the
region of West Java, there are several additional activities
appreciation from SOEs for the Indonesian nation to
as follows:
enrich the 70th Anniversary of RI.
• Clean Recycling Program allows Stakeholders and
fellow state-owned to cooperatie in utilization of
The series of events Commemorating 70 Years of
garbage crusher created by students of Telkom
Indonesian Indonesia “BUMN Hadir untuk Negeri” has the
University as one solution to environmental cleanliness.
following goals and objectives:
• Health services & Free Treatment
• Achieve National Movement “Let’s Work” proclaimed
•
Indonesia Hebat Exhibition
by President Joko Widodo on the 70th anniversary of
• Special Services of 70 Years Independence Day with a
the Independence of the Republic of Indonesia.
special promo in the forms of:
• Enliven HUT RI that has entered the age of 70 years in
• Free WiFi id 70 minutes
the form of tribute and appreciation of state-owned
• Discount Call SLI 45% from a landline to 8 destination
enterprises for the Indonesian nation.
countries
• To create conditions that encourages state-owned
• Telkomsel Points: Free Data 70 MB / Free Call 70
enterprises in Indonesia to contribute their best for the
Minutes / Free 70 SMS
country and the people of Indonesia.
• 17 Red and White BTSes
• Presenting SOEs in the community to help people in all
parts of the Republic of Indonesia.
• Strengthen SOE Synergy, so that the SOE extended
Further information related to Telkom’s responsibility
to social and community development, are on the topic
family can support each other in their working area.
“Partnership and Community Development Program”.
The program is organized by the Ministry of BUMN,
Telkom gets management in West Java. The forms of
TELKOM RESPONSIBILITY TO CUSTOMERS
In line with our mission to provide products and services
activities are as follows:
with the best quality at competitive prices, as well as
• Healthy 8 km Walk. Healthy walking program is a
part of the corporate governance practices related to our
form of responsibility of Telkom and the Government
responsibility towards our customers and the community
of disseminating the culture of healthy living through
as a stakeholder, we continue to maintain communication
healthy walking program.
with customers. The implementation of efficient and
• Folk Art Stage and Screenings featuring a range of
proactive communication is a prerequisite for ensuring the
contemporary art and serve the spirit of nationalism-
rights of consumers and customers, which will eventually
themed films so it is our responsibility to Telkom and
play an important role for the survival of the Company’s
government in disseminating the spirit of nationalism
business and continuous growth.
in the community.
• Commemoration Ceremony of Indonesia’s Anniversary
on August 17, 2015.
Policy
We are committed to always safeguard the interests
• Competitions Commemorating 70 Years of Indonesian
of consumers and customers of products and services.
Independence which include elements of society
We adjust that commitment to the needs and demands
around the office which is an event for SOE to be
of the market, as set out in a series of management
closer to the community, so that SOE can be better
policies related to aspects of product development,
known by the public as users of SOEs products.
product safety, warranty and post-sale consumer
complaint services.
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Program Types
Throughout 2015, we continued to carry out
various initiatives in order to ensure protection of
Services Center and Consumer Complaints
Mechanism
We provide excellent customer service center that can
consumer interests in obtaining quality products and
be directly visited, located in each regional office and
convenient service.
Product/Service Development
To ensure that a new product that we developed product as
our branch office. Also available is our online complaint
center through our website (www.telkom.co.id) as well
as contact center services with the number “147” for
retail customers, “500250” for SME customers and
commercial products that are well received in the market,
“0-800-1-Telkom” for enterprise customers.
we apply a standard guideline for the implementation of
product innovation incubation process. The incubation
process is required to support the creation of innovative
Telkom’s Tribute for Smart Indonesia
To increase comfort, Telkom has built thousands of Wifi.id
new products through the stages of idea submission,
point for super-fast Internet Corner in strategic locations
customer and idea validation, product validation, business
such as campuses, parks, airports, and café. Wi-Fi service
model validation, and market validation. Thus, we can
is expected to provide the ease of people who want
ensure the development of new product / service with the
to use Internet services. Moreover, the ease of access
best results and efforts are optimized, while customers
remains a problem for Internet users. The existence Wifi.
will benefit from the quality, reliability, availability, billing
id Corner is expected to also add to the ease of society
and payment, service range, compatibility, product
in making broadband Internet access. In addition to the
features, and readiness factors supporting the product.
Warung Taman, thousands of Wifi.id Corner points are
Telkom Integrated Quality Assurance (TIQA)
Program
Orientation on customer service satisfaction with the
Papua, Banjarmasin, and Pekanbaru. Up to 2015, we are
targeting approximately 1 million Wi-Fi to be installed in
various regions in Indonesia. With the high-speed internet
TIQA through ROSE (Raise on Service Excellence)
service, the public will be satisfied to surf in cyberspace
framework, covers:
and perform a variety of productive activities.
also distributed in various major cities of Pontianak,
• Holding the principle to ensure the products and
services that we deliver are of high value and are able
to create the greatest possible benefits and able to
stimulate the economy of the community and the state.
• Always maintain a code of ethics in product sales
(direct sales), promotion and advertising.
• Applying ethical advertising practices to the provisions
of the code of ethics of advertising in Indonesia.
• Ensuring that the products and after sales service are
easily available to the public.
• Supports the application of the principles and practices
of fair competition.
Warranty
In order to ensure compliance with the standards of after
sales service, we implement fair compensation through
the implementation of the post-sale warranty (service
level guarantee/SLG).
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CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES PARTNERSHIP AND
COMMUNITY DEVELOPMENT
PROGRAM (“PKBL”)
Telkom, as a State-Owned Enterprise (“SoE”), has an
obligation to carry out its social responsibility to the
community. This social initiative is manifested in the form
of Partnership and Community Development Program.
The goal of the Program is community empowerment
that focuses on the economic and social dimension
related both directly and indirectly to the main business
of Telkom.
State-Owned Enterprises Partnership Program with
Small Enterprises or Partnership Program is a program
to enhance the ability of small businesses to become
resilient and independent through the use of funds
from the profit of State-Owned Enterprises. This
program provides assistance in the form of a revolving
loan to be used as working capital for Micro and Small
Enterprises. Meanwhile the Community Development
Program is a program to empower and develop the
social and environmental conditions of the area
surrounding the Company.
The
legal basis
for Partnership and Community
Development Program are as follows:
• Law No 19 of June 19, 2003 regarding State-Owned
Enterprises.
• Decision of the Minister of State-Owned Enterprises
No.kEP-100/MBU/2002 dated June 4, 2002 regarding
the Assessment of the Soundness of the State-Owned
Enterprises.
• Regulation of the State Minister of State-Owned
Enterprises No.Per-05/MBU/2007 dated April 27, 2007
regarding the Partnership Program of the State-Owned
Enterprises with Small Enterprises and Community
Development Program.
• Circular Letter No.SE-14/MBU/2008 dated June 30,
2008 regarding the Optimization of Partnership
Program Fund Through Distribution Cooperation.
• Regulation of the State Minister for State-Owned
Enterprises No.Per-08/MBU/2013 dated, September
10, 2013 regarding the Fourth Amendment of Per.05/
MBU/2007 on the Partnership Program of the State-
Owned Enterprises with Small Enterprises and
Community Development Program.
• Regulation of the State Minister for State-Owned
Enterprises No.Per-07/MBU/05/2015 dated, May
22, 2015 regarding the Partnership Program of the
State-Owned Enterprises with Small Enterprises and
Community Development Program.
• Regulation of the State Minister for State-Owned
Enterprises No.Per-09/MBU/07/2015 dated, July
3, 2015 regarding the Partnership Program and
Community Development Program of State-
Owned Enterprises.
Through the Partnership and Community Development
Program, Telkom aspires to contribute to the quality
improvement of the environment surrounding the
Company in order for the Company to be well received
by the public.
TELKOM COMMUNITY DEVELOPMENT CENTER
Telkom, as a State-Owned Enterprise, is actively involved
in community empowerment through the Community
Development Center (“CDC”) Unit.
In
its strategic
position, the CDC assumes the role as, among others, the
mandate holder of the implementation of the Partnership
and Community Development Program.
Historically, CDC originated from the Small Enterprises
and Cooperative Development Program (“PUkk”) in 2001.
Along with regulatory changes and growing business
demands, PUkk turned into Community Development
Center in 2003 through the Resolution of the Board
of Directors No 61/PS150/CTG-10/2003 regarding the
Establishment of the Organization of the Partnership and
Community Development Program Management Center.
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Organizational Structure of Community Development Center (CDC)
CEO Telkom Group
Human Capital
Management Director
CDC
REGIONAL TELkOM
SECRETARIAT
HUMAN CAPITAL
DIVISION
Sub Section CDC
PARTNERSHIP
COMMUNITY
DEVELOPMENT
FINANCE
PRANDAL
317
CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES CDC as a unit that manages Partnership and Community Development Program is a business enabler of the
Company and has determined its strategic programs with reference to the Triple Bottom Line CSR, namely the
Planet (Assistance to the Victims of Natural Disasters, Public Facilities Development as well as Environmental
Conservation), People (Education and Training Development, Health Facilities Development as well as Religious
Facilities Development and Repairs), and Profit (Partnership Program Distribution, Poverty Alleviation, and
Development Partners’ Capacity Building).
CDC unit’s strategic program in 2015 as in the following diagram
3 CSR Pilars
PROGRAM
People
Planet
Profit
• Education & Training
• Health Facilities
Development
• Religious facilities
Development and
Repairs
• Assistance for Natural
Disaster
• Public Facilities
Development
• Environmental
Conservation
• Partnership program
fund distribution
• Poverty alleviation
• Partners’ capacity
building
Education &
Training
F
O
C
U
S
Public Facilities
Development
Effectiveness
enhancement of
the partnership
program fund
disbursement
Realization
50.9%
absorption from
the distributed
BL fund
19.47%
absorption from
the distributed
BL fund
The performance
of a sound State-
Owned Enterprise
has been awarded
3 (three) Awards
by President of
the Republic of
Indonesia
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
The three pillars are manifested, among others, in the
amount, Partnership Program funds amounted to Rp2.74
form of Focus Programs, namely:
trillion are distributed to 117,551 Development Partners
• Digital Society, by
establishing digital-based
and Community Development Program funds amounted
educational and training facilities and infrastructures.
to Rp0.54 trillion are dispersed all over to 34 provinces
• Digital Environment, by helping to preserve the
in Indonesia.
environment through the Public Facilities Development.
• Digital Economy, by enhancing the effectiveness of the
partnership program disbursement.
Realization of Partnership Program Fund
Distribution
In 2015, the Partnership Program fund is amounted to
These strategic programs are the concrete manifestation
Rp340.96 billion and it has been distributed to 11,981
of the CDC synergy with other business units as well
Partners consisting of
industrial, trade, agriculture,
as the subsidiaries of the Company and its affiliates in
livestock, plantation, fisheries, services, and other
supporting the business of Telkom Group. Such support
business sectors.
is expected to provide the best results for sustainable
business and stronger corporate reputation.
The largest fund distribution of Partnership Program
REALIZATION OF THE FUND DISTRIBUTION OF
PARTNERSHIP AND COMMUNITY DEVELOPMENT
PROGRAM
From 2001 to 2015, the Company has distributed the
in 2015 is to the Trade Sector, which amounted to
Rp193.97 billion, as well as the number of Development
Partners who receive the funding from partnership
program in 2015.
fund from the Partnership and Community Development
Following are the data of the number of Development
Program amounted to Rp3.28 trillion. From the total
Partners and Fund Distribution per Business Sector from
2013 to 2015:
No Location
1 Manufacture
2
Trade
3 Agriculture
4
5
6
7
Livestock
Plantation
Fishery
Services
8 Others
Total
Number of Fostered Partner
Total Distribution (Rp billion)
2015
1,895
6,972
229
429
207
333
1,896
20
2014
2,183
6,675
222
428
203
296
2,116
40
2013
694
2015
2014
56.37
70.50
2,140
193.97
206.22
96
153
81
112
688
11
6.77
12.81
5.56
9.20
55.32
0.96
6.72
14.83
6.36
9.75
11.77
11,981
12,163
3,975
340.96
396.42
2013
20.99
62.85
2.43
4.90
2.05
3.48
0.52
118.21
70.27
20.99
The number of recipients of the partnership program fund in 2015 fell 1.5% compared to 2014 as well as the amount
of funds distributed that decreased by 13.93% compared to the previous year. The decline of the amount of funds
distributed and the number of beneficiaries of the partnership program fund is because the fund provided in 2015
(Rp384.31 billion) is less (-22.97%) than the fund provided in 2014 (Rp498.92 billion).
The largest distribution of Partnership Program fund is to the Province of West Java which amounted to Rp66.09 billion
or 19.38% of the total fund distributed (Rp340.96 billion), as well as the number of beneficiaries of the Development
Partners from Partnership Program amounted to 2,643 Development Partners or 22.06% of the total number of
beneficiaries of the Development Partners from Partnership Program which amounted to 11,981 Partners.
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CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES
Data for the Number of Development Partners and Actual Fund Distribution Per Territory for 2015 are as follows:
No Region (Province)
1
2
Aceh
North Sumatera
3 West Sumatera
4
5
6
7
8
9
Mainland Riau
Riau Islands
South Sumatera
Jambi
Bengkulu
Lampung
10 Bangka Belitung
11
12
DkI Jakarta
Banten
13 West Java
14
15
16
17
Central Java
Special Region Yogyakarta
East Java/Madura
East kalimantan
18 West kalimantan
19
East kalimantan
20 Central kalimantan
21
East kalimantan
22 Bali
23 West Nusa Tenggara
24 East Nusa Tenggara
25
South Sulawesi
26 Central Sulawesi
27
Southeast Sulawesi
28 North Sulawesi
29 West Sulawesi
30 Gorontalo
31 Maluku
32 North Maluku
33 West Papua
34 East Papua
Total Number
Fostered Partner
Actual Distribution (Rp million)
229
468
257
233
167
217
127
157
171
162
599
350
2,643
1,253
249
1,710
437
458
238
253
84
140
125
94
355
134
105
126
27
135
51
110
1
116
4.83
11.35
6.00
5.71
4.70
5.19
4.53
3.83
4.29
5.12
21.77
10.47
66.09
40.15
6.73
50.24
13.59
13.16
7.28
8.02
3.55
6.81
4.63
3.08
6.54
3.70
2.99
4.32
0.77
4.34
1.07
3.09
0.04
3.01
11,981
340.99
Distribution Realization of the Community Development Program
In 2015, the Company gives priority to providing assistance in improving the quality of the Indonesian society in entering
the digitalization era through the Education and Training Development by absorbing fund amounted to 50.9% of total
distribution of the Community Development Program as well as the Public Facilities Development Program that absorbs
the fund of 19.47%. Nevertheless, the Company does not rule out the Community Development Program in other fields.
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS
Details of the fund distribution of Community Development Program per type of assistance for 2013 to 2015 are as
illustrated by the following table.
No
Donation Type
Donation Value (Rp million)
1
2
3
4
5
6
7
8
Nature disaster victims
Education and/or training
Healthcare improvement
Improvement for facility and/or public facility
Religion facility
Natural preservation
Proverty
Capacity Improvement Development Partners
Sub Total
Operational Expense
Total
CAGR (%)
2015
1.30
41.15
1.47
15.74
8.47
0.75
0.01
3.52
72.41
8.43
80.84
-2.37
2014
4.37
40.83
8.49
9.43
16.23
0.80
1.04
81.19
1.62
82.81
48.49
2013
1.47
20.96
5.37
5.54
13.28
0.50
6.63
53.75
2.01
55.76
0
Distribution realization of Community Development Program fund in 2015 reached Rp80.84 billion, a decrease of 2.37%
from 2014, which amounted to Rp82.80 billion. In 2015, 2 (two) management policies of Partnership and Community
Development Program are published, namely the Regulation of the State Minister for State-Owned Enterprises No Per-
07/MBU/05/2015 dated May 22, 2015 on the Partnership Program of State-Owned Enterprises with Small Enterprises
and Community Development Program, and Regulation of the State Minister for State-Owned Enterprises No Per-09/
MBU/07/2015 dated July 3, 2015 on the Partnership and Community Development Program of State-Owned Enterprises.
With these two regulations, the Company needs to make adjustments in managing Community Development fund in
order to comply with the regulations.
As for the monthly average, the distribution of the fund of Community Development Program in 2015 was recorded at Rp8.18
billion or increased by 18.61% from the monthly average of the fund disbursement in 2014, which amounted to Rp6.9 billion.
PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM PERFORMANCE & CSR INDEX
Based on the Decision of the State Minister for State-Owned Enterprises No kep-100/MBU/2002 dated, June 4, 2002,
the effectiveness level of Partnership Program’s loan distribution and loan repayment collectability is part of the
assessment for a healthy State-Owned Enterprise.
1. Effectiveness of the Distribution of Partnership Program Fund
The effectiveness rate of the distribution of Partnership Program fund is calculated by dividing the amount of fund
distributed by the amount of fund available. The amount of fund distributed is the total fund distributed to small
businesses as Development Partners of the Company in the current year.
In 2015, the achievement of effectiveness rate of the distribution of the Partnership Program fund is 90.28% with the
acquisition value of 3, increased substantially better than the attainment of the effectiveness of the distribution in 2014
which amounted to 82.52% with a value of 1.
Calculation of the Effectiveness Distribution of Partnership Program Fund
Distributed Fund
Available Fund
Eff Rate of Distribution Fund Effectiveness Rate Score of Distribution Fund
Skor tingkat efektivitas penyaluran dana
Source of fund (Rp billion)
2015
2014
2013
348.97
384.34
90.28%
3
411.72
498.92
82.52%
1
140.77
382.43
90%*
3
*In 2013, based on the decision of the State Minister for State-Owned Enterprises, the fund distribution was stopped, and the effectiveness
of fund distribution of all State-Owned Enterprises was synchronized with a Score of 3.
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CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES
2. Partnership Program Refund Collectability
The Partnership Program’s loan collectability rate is a comparison between the average of the weighted average of
loan collectability to total outstanding loans (loan balance). The weighted average of loan collectability is obtained by
multiplying the collectability value with the loan balance based on the loan quality (performing: 100%; substandard:
75%; doubtful: 25% and non-performing: 0%).
In 2015, the attainment rate of Partnership Program’s loan repayment collectability was recorded at 71.37% with the
achievement of maximum value of 3, or lower than the collectability level of 2014, which amounted to 82.02% with a
maximum value of 3.
Calculation of Loan Partnership Program Collectability Rate
Loan Quality
Performing
Substandard
Doubtful
Non-performing
Amount
Collectability Rate
Collectability Rate Score
Loan Balance
(Rp billion)
2,031.52
160.35
66.71
779.80
3,038.38
71,73 %
3
%
100
75
25
0
Weighted Average
(Rp billion)
2,031.52
120.26
16.68
0
2,168.46
CSR Index
In 2015, the Company measured the CSR Index reaching 73.18. The index illustrates that the achievement of CSR
activities undertaken by the Company had an effect of 73% on customer loyalty and reputation of the company.
In addition to measuring CSR Index, the Company also measured how much people recommend using Telkom products,
which are measured by the Net Promoter Score formula.
PROMOTERS
PASSIVE
42.84%
38.54%
DETRACTORS
18.62%
NPS
24.22%
NPS = Promoters – Detractors
NPS measurement result by 24.22% in 2015 showed positive values of community perspective in recommending the
use of Telkom’s product.
Furthermore, the CSR Index measurements continue to be developed to determine the extent of impact that CSR
activities have on investors in making an investment decision in the Company.
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS ACTIVITIES AND COMMUNITY DEVELOPMENT PARTNERSHIP PROGRAM
Briefings candidate of Development Partners.
Transferring donation of partnership program symbolically to
development partners given by GM Witel.
Realization of The Funds Distribution of
Partnership Program
In 2015, the Company has realized the distribution of
With regards to Community Development Programs
(“BL”) conducted in 2015, a series of activities has been
realized, including Assistance for Victims of Natural
funds for Partnership Program for Development Partners
Disasters, Assistance in Education and Training, Assistance
in 34 Provinces. Development Partners receiving financial
in Public Health, Assistance in Public Facilities, Assistance
assistance were small businesses whose products have a
in Religious Facilities, Assistance in Nature Conservation,
fairly high competitiveness but were having difficulty in
Assistance in Poverty Alleviation and Assistance in the
marketing the products, limited human resources ability,
Capacity Building of Development Partners.
business management, capital, and technology.
Before the funds were disbursed, the Company provided
1. Assistance for Victims of Natural Disasters
Assistance to victims of natural disasters is aimed to
briefings in the form of education and management
ease the burden of people affected by disasters. In 2015,
training with the hope that Development Partners were
the Company provided assistance to victims of natural
able to manage and develop their businesses better.
disasters, including floods in the district of Bandung,
haze in Sumatra and kalimantan, as well as victims of the
eruption of Mount Sinabung.
.
Evacuation of flood victims in West Bandung regency.
Medical check up of smog disaster victims in kalimantan.
323
CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES Explaining result of creation development young start up in the
next development program.
2. Education and Training Assistance
Improving the quality of public education is a major
concern of the Company and its implementation is one
of the core activities of the Community Development
Program. This is done based on the consideration
that education is one of the main foundations for the
improvement of public welfare.
Assistance provided, inter alia, were construction and
development of a Creative Camp in five (5) cities,
among others, Bandung, Depok, Bekasi, Pekanbaru and
Denpasar; providing Internet training to 2,000 teachers
across Indonesia through Indonesia Digital Learning
program, building WiFi Corners up to the border areas, as
well as the development of and appreciation for youths
in optimizing digital technologies through the NextDev
Program published on social media (youtube).
3. Public Health Assistance
In 2015, we prioritized aid in the health sector to actions
that supported the
improvement of public health.
Assistance was given, among others, in the form of
blood donation, cataract surgery, mass circumcisions
and distribution of staple foods to improve the quality of
community nutrition as well as, reconstruction of Veterans’
Homes with as many as 45 houses in 10 Cities that were
part of the “BUMN Hadir untuk Negeri” Program as part
of the celebration of Indonesia’s 70th Independence Day.
Director of Telkomsel teaches how to use an internet in
Sebatik Island bordering Malayia witnessed by Chief of
Commissioner Telkom.
Eye check up on process
of cataract surgery.
324
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS 4. Assistance to Public Facilities
Other direct benefits that society experiences as a result of the Company is the development of infrastructure and
utilities intended for the public.
The assistance given were, among others, in the form of construction of gates and the revitalization of parks in order
to welcome the Asia-Africa Conference in Bandung, garbage disposal (incinerator) given to the community, and the
development of an amphitheater in Banyuwangi.
Minister of BUMN, Rini
Soemarno accompanied by
CEO Telkom Alex J. Sinaga
trying to use an incenerator
(destroyer of organic trash),
creation of Telkom University.
Veteran house renovation.
325
CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES The students of Pesantren Al- Ikhwan Tematik are
attending batik training.
5. Assistance in Religious Facilities
In addition to the construction of public facilities, the
Company also paid attention to the development and
improvement of religious facilities. Assistance disbursed
was in the form of repair or construction of places of
worship in the work areas of the Company. Assistance
given included, among others, aid in the building of
mosques, churches and temples.
6. Assistance in Environmental Conservation
In an effort to realize environmentally friendly areas,
we also carry out reforestation activities such as tree
planting, especially on critical and barren land.
7. Assistance in Poverty Alleviation
Through assistance in poverty alleviation, Telkom hopes
to uplift the living standards of the poor in both urban
and rural areas. Assistance is provided in the form of
skill improvement training, which improve welfare in a
continuous manner.
8. Increasing the Capacities of Development
Partners
Assistance to Development Partners was totally carried
out by all components of the Company including the
Commissioner of the Company in the form of grants. The
activities included promotion and development through
training programs and visits in the spirit of exchanging
views on business development and motivation.
326
Transfering donation to renovate worship place.
Telkom along with community and government of Central
Jawa plant 10,000 trees in Mt. Lawu.
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Business development dialogue between President Commissioner Hendri Saparini and Senior General
Manager CDC Nur Hassim Rsusdi with development partner woven batik Bali.
blanja.com training to Development Partners.
Independent Commissioner P. Pamela Johanna
Waluyo discussing and motivating to silver
craftman of Development Partners.
Developer and development
partners of Telkom receiving
Adibakti Mina Bahari
appreciation by President RI.
a. Promotion and Marketing
The Company provided development assistance in
b. Education and Training for Development Partners
Development Activity for Development Partners were
the form of promotion and marketing by including
done, among others, through internet training programs
Development Partners
in various exhibitions both
for Development Partners and Visit Activities aimed to
nationally and internationally. An example is the Sail
provide motivation and insight on business development.
Tomini Exhibition. The Company also helped the
promotion of Development Partners’ products so that
One of the results of the capacity-building of Development
they could participate in the global market through an
Partners is the attainment of the Adibakti Mina Bahari
online store (http://www.blanja.com).
Award by the President of the Republic of Indonesia
for a Development Partner, Patin Fish Fisheries, and its
Supervisors from the Company, in kampar, Riau Province,
on December 11, 2015.
327
CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES EMPLOYEE VOLUNTEER PROGRAM (EVP)
Employee Volunteer Program (“EVP”) is part of the
Cultural Preservation
Cultural Preservation includes the direct participation
Work Life Integration main program, which serves
of Telkomers in social activities in the field of traditional
as a forum to facilitate social community activities,
culture, through teaching activities and active participation
initiated by Insan Telkom Group (“Telkomers”), both
on cultural guiding to the younger generation.
individually and through the community of employees
in the Telkom Group.
The main purpose of EVP is to increase the spirit of
Telkomers to have the “Spirit of Loving”, “Spirit of
Giving” and “The More You Give - The more you get”
in the context of Telkomers always wanting to make a
positive contribution to the society and to Indonesia and
the Universe.
As a means of communication and information activities
of EVP, the Company facilitates through the website
(http://www.evp.telkom.co.id). Throughout 2015, we
recorded that as many as 1,722 Telkomers have enrolled
in the EVP program with an awareness index of 85.85%.
Employee Volunteer Program Activities are divided into
four (4) main activities, namely Education, Environmental,
Cultural Preservation, and Social Service.
Education
Education conducted throughout 2015 in the form of
teaching in formal and informal educational institutions.
Director of NITS, Abdus Somad Arief in debus
exhibition in Pandeglang-Banten.
Environment
(Save the planet) includes the direct participation in
social activities for the improvement of the environment,
among others, environmental cleanliness activities
undertaken by the Bicycle and Motorcycle Community
and tree planting activities undertaken by the Telkom
Employees Union Community.
Education loyality activity by CEO Telkom Group,
Alex J. Sinaga as role model teaches in SMP YAPIS
Manokwari Papua.
Beach cleanliness activity by Telkomsers
Motorcycles Community.
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Social
Includes Telkomers’ social activities by becoming social activities initiators, for example by providing clean water for the
village community experiencing drought as well as campaigning by biking to work (bike to work) in Bandung.
Bike to Work Campaign in Bandung by Telkomers Bike Community.
Clean water distribution activities by
Telkomers Community.
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CORPORATE SOCIAL RESPONSIBILITY AND PKBL MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCEAPPENDICES 330
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS 08
APPENDICES
332 Appendices
338 Cross Reference to Bapepam-Lk Regulation No.x.k.6 and
Criteria of ARA
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL
APPENDICES
3G
The generic
term
for
third generation mobile
Backbone
The main telecommunications network consisting of
telecommunications technology. 3G offers high speed
transmission and switching facilities connecting several
connections to cellular phones and other mobile devices,
network access nodes. The transmission links between
enabling video conference and other applications
nodes and switching
facilities
include microwave,
requiring broadband connectivity to the internet.
submarine cable, satellite, optical fiber and other
3.5G
A grouping of disparate mobile telephony and data
technologies designed to provide better performance
than 3G systems, as an interim step towards deployment
of full 4G capability.
transmission technology.
Bandwidth
The capacity of a communication link.
Bapepam-LK
Badan Pengawas Pasar Modal dan Lembaga Keuangan,
or the Indonesian Capital Market and Financial Institution
4G/LTE
A
fourth generation super
fast
internet network
Supervisory Agency, the predecessor to the oJk.
technology based on Internet Protocol (IP) that makes
the process of data transfer much faster and stable.
Adjusted EBITDA
Adjusted EBITDA is defined as earnings before interest,
tax, depreciation and amortization. Adjusted EBITDA
and other related ratios in this Annual Report serve as
Broadband
A signaling method that includes or handles a relatively
wide range (or band) of frequencies.
BSC
Base Station Controller, an equipment responsible for
additional indicators on our performance and liquidity,
radio resource allocation to mobile station, frequency
which is a non-GAAP financial measure.
administration and handover between BTSs controlled by
the BSC.
ADS
American Depositary Share (also known as an American
Depositary Receipt, or an “ADR”), a certificate traded on a
BSS
Base Station Subsystem, the section of a cellular
U.S. securities market (such as New York Stock Exchange)
telephone network responsible for handling traffic and
representing a number of foreign shares. Each of our ADS
signaling between a mobile phone and the network
represents 200 of our Series B shares having a par value
switching subsystem. A BSS is composed of two parts:
of Rp50 per share (“common stock”).
the BTS and the BSC.
ADSL
Asymmetric Digital Subscriber Line, a type of digital
BTS
Base Transceiver Station, equipment that transmits
subscriber
line technology, a data communications
and receives radio telephony signals to and from other
technology that enables faster data transmission over
telecommunication systems.
copper telephone lines than a conventional voice band
modem can provide.
APMK
Alat Pembayaran Menggunakan Kartu or card-based
payment instruments, a payment instrument in the form
of credit cards, Automated Teller Machine (“ATM”) and/
or debit cards.
ARPU
Average Revenue per User, a measure used primarily by
BWA
Broadband Wireless Access, a technology that provides
high speed wireless
internet access or computer
networking access over a wide area.
CDMA
Code Division Multiple Access, a transmission technology
where each transmission is sent over multiple frequencies
and a unique code is assigned to each data or voice
transmission, allowing multiple users to share the same
telecommunications and networking companies which
frequency spectrum.
states how much money we make from the average user.
It is defined as the total revenue from specified services
divided by the number of consumers for those services.
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS CPE
Customer Premises Equipment, any handset, receiver,
e-Commerce
Electronic Commerce, the buying and selling of products
set-top box or other equipment used by the consumer
or services over electronic systems such as the internet
of wireless, fixed line or broadband services, which is
and other computer networks.
the property of the network operator and located on the
customer premises.
DCS
Digital Communication System, a mobile cellular system
using GSM technology operating in the 1.8 GHz frequency
band.
e-Money
Electronic Money, money or script that is only exchanged
electronically.
e-Payment
Also known as electronic funds transfer, the electronic
exchange or transfer of money from one account to
Defined Benefit Pension Plan
A type of pension plan in which an employer promises
another, either within a single financial institution or
across multiple institutions, through computer-based
a specified monthly benefit on retirement that
is
systems.
predetermined by a formula based on the employee’s
earnings history, tenure of service and age, rather than
depending on
investment returns.
It
is considered
E1
The backbone transmission unit which operates over two
‘defined’ in the sense that the formula for computing the
employer’s contribution is known in advance.
separate sets of wires, usually twisted pair cable. E1 data
rate is 2,048 Mbps (full duplex), which is divided into 32
timeslots.
Defined Contribution Pension Plan
A type of retirement plan in which the amount of the
employer’s annual contribution is specified. Individual
Earth Station
The antenna and associated equipment used to receive or
accounts are set up for participants and benefits are
transmit telecommunication signals via satellite.
based on the amounts credited to these accounts
(through employer contributions and,
if applicable,
employee contributions) plus any investment earnings on
EDGE
Enhanced Data rates for GSM Evolution, a digital mobile
the money in the account. only employer contributions
phone technology that allows improved data transmission
to the account are guaranteed, not the future benefits.
rates as a backward-compatible extension of GSM.
In defined contribution plans, future benefits fluctuate on
the basis of investment earnings.
DLD
Domestic Long Distance, a long distance call service
designed for customers who live in different areas but still
within one country. These areas normally have different
area codes.
DTH
Direct-to-Home satellite broadcasting, the distribution
of television signals from high-powered geostationary
satellites to small dish antennas and satellite receivers in
homes across the country.
Edutainment
Education and Entertainment.
Fixed Line
Fixed wireline and fixed wireless.
Fixed Wireless
The local wireless transmission link using a cellular,
microwave, or radio technology to connect customers at
a fixed location to the local telephone exchange.
Fixed Wireline
A fixed wire or cable path linking a subscriber at a fixed
location to a local exchange, usually with an individual
e-Business
Electronic Business solutions,
including electronic
phone number.
payment services, internet data centers and content and
application solutions. Refer to “New Economy Business
FTTH
Fiber To The Home are the implementation of fiber optic
(“NEB”) and Strategic Business opportunities Portfolio”
network that reaches up to customer point or known as
under Business overview.
customer premise.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL Gateway
A peripheral that bridges a packet based network (IP)
IMT-2000
International Mobile Telecommunications-2000,
a
and a circuit based network (PSTN).
body of specifications provided by the International
Gb
Gigabyte, a unit of information used, for example, to
quantify computer memory or storage capacity.
Telecommunication Union. Application services include
wide area wireless voice telephone, mobile internet access,
video calls and mobile TV, all in a mobile environment.
Gbps
Gigabyte per second, the average number of bits,
characters, or blocks per unit time passing between
equipment in a data transmission system. This is typically
measured in multiples of the unit bit per second or byte
per second.
Installed Lines
Complete lines fully built-out to the distribution point and
ready to be connected to subscribers.
Interconnection
The physical linking of a carrier’s network with equipment
or facilities not belonging to that network.
GHz
Gigahertz. The hertz (symbol Hz), the international
IP
Internet Protocol, the method or protocol by which data
standard unit of frequency defined as the number of
is sent from one computer to another on the internet.
cycles per second of a periodic phenomenon.
GMS
General Meeting of Shareholders, which may be an
IP Core
A block of logic data that is used in making a field
programmable gate array or application-specific
Annual General Meeting of Shareholders (“AGMS”) or an
integrated circuit for a product.
Extraordinary General Meeting of Shareholders (“EGMS”).
GPON
Gigabyte-Passive optical Network, the most widely
IP DSLAM
Internet Protocol-Digital Subscriber Line Access
Multiplexer, a network device located near the customer’s
deployed type of passive optical network system that
location that allows telephone lines to make faster
brings optical fiber cabling and signals all or most of the
connections to the internet by connecting multiple
way to end users.
GPRS
General Packet Radio Service, a data packet switching
technology that allows information to be sent and
received across a mobile network and only utilizes the
network when there is data to be sent.
customer Digital Subscriber Lines (DSLs) to a high-speed
internet backbone line using multiplexing techniques.
IPO
Initial Public offering, the first sale of stock by a company
to the public.
GSM
Global System for Mobile Telecommunication, a European
IPTV
Internet Protocol Television, a system through which
television services are delivered using the Internet
standard for digital cellular telephone.
Protocol suite over a packet-switched network such as
Homepass
A connection with access to fixed line voice, IPTV and
broadband services.
IDD
International Direct Dialing, a service that allows a
subscriber to make an international call without the
assistance or intervention of an operator from any
telephone terminal.
the internet, instead of being delivered through traditional
terrestrial, satellite signal, and cable television formats.
ISP
Internet Services Provider, an organization that provides
access to the internet.
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS KSO
Kerjasama Operasi, a form of joint operation agreement
MSOE
Ministry of State-owned Enterprises.
that
includes build, operate and
transfer which
arrangement was previously used by Telkom, in which the
consortium partners invest and operate facilities owned
Network Access Point
A public network exchange facility where ISPs connected
by Telkom in regional divisions. The consortium partners
with one another in peering arrangements.
are owned by international operators and national private
companies or Telkom.
NGN
Next Generation Network, a general term that refers
Lambda
Lambda indicates the wavelength of any wave, especially
to a packet-based network able to provide services,
including telecommunication services, and able to make
in physics, electronics engineering and mathematics.
use of multiple broadband, quality of service enabled
Leased Line
A dedicated telecommunications transmissions
transport technologies and in which service-related
functions are independent from underlying transport
line
related technologies. A NGN is intended to be able to,
linking one fixed point to another, rented from an operator
with one network, transport various services (voice, data,
for exclusive uses.
and various media such as video) by encapsulating these
into packets, similar to how such packets are transmitted
Mbps
Megabyte per second, a measure of speed for digital signal
on the internet. NGNs are commonly built around the
Internet Protocol.
transmission expressed in millions of bits per second.
Metro Ethernet
Bridge or relationship between locations that are apart
geographically, this network connects LAN customers at
several different locations.
Node B
A BTS for a 3G W-CDMA/UMTS network.
OJK
Otoritas Jasa Keuangan, or the Indonesian Financial
Services Authority, the successor of Bapepam-Lk, is an
MHz
Megahertz, a unit of measure of frequency equal to one
independent institution with authority to regulate and
supervise financial services activities in the banking
million cycles per second.
sector, capital market sector as well as non-bank financial
Mobile Broadband
The marketing term for wireless internet access through a
portable modem, mobile phone, USB Wireless Modem or
other mobile devices.
industry sector.
Optical Fiber
Cables using optical fiber and laser technology through
which modulating light beams representing data are
transmitted through thin filaments of glass.
MoCI
The Ministry of Communication and Information, to which
regulatory responsibility over telecommunications was
Pay TV
Pay Television, premium television, or premium channels,
transferred from the Ministry of Communication (“MoC”)
subscription-based television services, usually provided
in February 2005.
by both analog and digital cable and satellite, but also
increasingly via digital terrestrial and internet television.
MSAN
Multi Service Access Node, represent the third generation
of optical access network technology and are single
PDN
Packet Data Network, a digital communications network
platforms capable of supporting traditional, widely
which breaks a group data to be transmitted into segments
deployed, access technologies and services as well as
called packets, which are then routed independently.
emerging ones, while simultaneously providing a gateway
to a NGN core. MSAN will enable us to provide Triple Play
services that distribute high speed internet access, voice
packet services and IPTV services simultaneously through
the same infrastructure.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL PKLN
Tim Pinjaman Komersial Luar Negeri, or Foreign
Satellite Transponder
Radio relay equipment embedded in a satellite that
Commercial Loan Coordinating Team, an inter-agency
receives signals from earth and amplifies and transmits
team of the Government charged with, among others,
the signal back to the earth.
considering
requests of
Indonesian State-owned
Enterprises such as us for consent to obtain foreign
commercial loans.
POWL
Public offering Without Listing.
SCCS
Submarine Communications Cable System, a cable laid
on the sea bed between land-based stations to carry
telecommunication signals across stretches of ocean.
Premium SMS
Premium Short Message Service, a text messaging service
SME
Small and Medium Enterprise.
component of phone, web, or mobile communication
systems, using standardized communications protocols
SMS
Short Messaging Service, a technology allowing the
that allow the exchange of short text messages between
exchange of text messages between mobile phones and
fixed line or mobile phone devices.
between fixed wireless phones.
PSTN
Public Switched Telephone Network, a telephone network
operated and maintained by us and the kSo Units for us
and on our behalf.
Pulse
The unit in the calculation of telephone charge.
SOE
State-owned
Enterprise,
a
Government-owned
corporation, state-owned company, state-owned entity,
state enterprise, publicly owned corporation, Government
business enterprise, or parastatal, a legal entity created
by a Government to undertake commercial activities on
behalf of an owner Government.
Radio Frequency Spectrum
The part of the electromagnetic spectrum corresponding
Softswitch
A central device in a telephone network that connects
to radio frequencies, i.e. frequencies lower than around
calls from one phone line to another, entirely by means
300 GHz (or, equivalently, wavelengths longer than about
of software running on a computer system. This work
1 mm).
RIO
Reference
Interconnection offer, a regulatory term
covering
all
facilities,
including
interconnection
was formerly carried out by hardware, with physical
switchboards to route the calls.
STM-1
Synchronous Transport Module level-1, the SDH ITU-T
tariffs, technical facilities and administrative
issues
fiber optic network transmission standard with a bit rate
offered by one telecommunications operator to other
of 155.52 Mbps. The other standards are STM-4, STM-16
telecommunications operator for interconnection access.
and STM-64.
RMJ
Regional Metro Junction, an inter-city cable network
installation service in one regional (region/province).
Roaming
A general term referring to the extension of connectivity
service in a location that is different from the home
location where the service was registered.
Switch
A mechanical, electrical or electronic device that opens
or closes circuits, completes or breaks an electrical path,
or selects paths or circuits, used to route traffic in a
telecommunications network.
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Terra Router
Terra Router or terabit router on the theory allows the
VPN
Virtual Private Network, a secure private network
network capacity on a scale of terabits (1 terabit = 1
connection, built on
top of publicly-accessible
million gigabits).
TIMES
Telecommunication, Information, Media, Edutainment and
Service.
infrastructure, such as the internet or the public telephone
network. VPNs typically employ some combination of
encryption, digital certificates, strong user authentication
and access control to secure the traffic they carry. These
provide connectivity to many machines behind a gateway
or firewall.
TPE
a normalized way to refer to transponder bandwidth it
simple means how many transponders would be used if
VSAT
Very Small Aperture Terminal, a relatively small antenna,
the same total bandwidths used only 36 Mt transponder
typically 1.5 to 3.0 meters in diameter, placed in the user’s
(1 TPE = 36 MHz).
premises and used for two-way communications by
satellite.
UMTS
Universal Mobile Telephone System, one of the 3G mobile
systems being developed within the ITU’s IMT-2000
framework.
USO
Universal Service obligation, the service obligation
imposed by the Government on all telecommunications
services providers for the purpose of providing public
services in Indonesia.
VoIP
Voice over Internet Protocol, a means of sending voice
information using the IP.
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL CROSS REFERENCE TO BAPEPAM-LK REGULATION
NO.X.K.6 AND CRITERIA OF ARA
Description
Page
Criteria
General
Annual Report is to be presented in good
and proper Indonesian Language and also
presented in English Language
Annual Report is printed with good quality
and use the same type and size of the font
that easy to read
The annual report contains the clear identity
of the company
The company name and the year of the
annual report display in:
Cover;
Side of Cover;
Back over; and
Each Page.
The annual report is displayed in the
company’s website
Includes the latest annual report and less
than 4 years
Summary of Key Financial Information
Summary of Financial Result presented in
comparison with previous 3 (three) fiscal
years or since commencement of business
of the company
Summary of Financial Position presented
in comparison with previous 3 (three) fiscal
years or since commencement of business
of the company
The information at least contain:
Sales/Revenue;
Income (loss);
Attributable to owners of the parent
Attributable to non-controlling interests
Comprehensive income (loss);
Attributable to owners of the parent
Attributable to non-controlling interests
Earning (loss) per share years.
The information at least contain:
Total investment to associate entity;
Total asset;
Total liability; and
Total equity.
Summary of Financial Ratios presented in
comparison with previous 3 (three) fiscal
years or since commencement of business
of the company
The information contains five (5) common
and relevant to industrial company financial
ratios.
Summary of price share in table and graphic The information contains the table of:
Summary of outstanding bond/sukuk/
convertible bond in 2 (two) last financial
years
Number of outstanding shares;
Market capitalization
The highest, lowest and of closing price; and
Trade volume.
The information contains at least the graphic
of closing price and trade volume for each
quarters in last 2 (two) financial years.
The information contents:
Number of bond/sukuk/convertible bond
outstanding;
Interest rate;
Maturity date; and
Bond/sukuk rating.
√
√
√
√
14-15
14-15
14-15
18-19
20
I
1
2
3
4
II
1
2
3
4
5
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Criteria
Description
Page
Report of the Board of Commissioners and Director
III
1
The Board of Commissioners Report
2
The Director Report
3
Signature of The Board of Commissioners
and The Director
The Board of Commissioners Report should
at least contain the following items:
Assessment on the performance of the Board
of Directors in managing the company;
View on the prospect of the company’s
business as established by the Board of
Directors;
Assessment on the performance of
the committee under the board of
commissioners; and
Changes in the composition of the Board of
Commissioners (if any).
The Director Report should at least contain
the following items:
The company’s performance, i.e. strategic
policies, comparison between achievement of
results and targets, and challenges faced by
the company
Business prospect;
Implementation of Good Corporate
Governance by the company; and
Assessment of the performance of the
committees under the Board of Directors (if
any);
Changes in the composition of the Board of
Directors (if any).
At least contain the following items:
Signature stated on a separate sheet;
A statement that the Board of Commissioners
and Board of Directors are fully responsible
for the accuracy of the content of the annual
report;
Signed by all members of the Board of
Commissioners and Board of Directors
members by name and position; and
Written explanation in a separate letter
from the person concerned in the event of
a member of the Board of Commissioners
or Board of Directors who do not sign the
annual report or a written explanation in a
separate letter from the other members in
case there is no written description of the
relevant.
24-29
30-37
328
339
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL Criteria
Company Profile
Name and the address of the company
Brief history of the company
Line of Business
Description
The company profile should at least contain
the following: name, address, post code,
telephone, facsimile, email and website.
Including: date / year of establishment, name
and change of the company name (if any).
Note : if the company never did change the
name, please disclose
Including:
Line of Business according to the latest
Articles of Association;
Business operation; and
Types of products and/or services produced.
Page
42-43
44-45
42, 112-115
organizational Structure
In chart form, at least one level below the
Board of Directors, with the names and titles.
64-65
Vision and Mission of the company
IV
1
2
3
4
5
Including:
Vision;
Mission;
Approval of vision and mission statement
by the Board of Directors / Board of
Commissioners;and
Statement on corporate culture of the
company.
The Board of Commissioners profiles
including:
Name;
Position (including the position in other
company or institution if any);
Age;
Domicile;
History of Education;
Working experience (position, institution and
time period); and
History of the appointment as a
commissioner of the company.
The Board of Directors profile include:
Name;
Position (including the position in other
company or institution if any);
Age;
Domicile;
History of Education;
Working experience (position, institution and
time period); and
History of the appointment as a director of
the company.
55
66-69
70-73
6
The Board of Commissioners profiles
7
The Board of Directors profile
340
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Criteria
Description
Page
8
Number of employees and description
of competence building during 2 (two)
comparative year (education and training)
9
Shareholder Composition
10
Name of subsidiaries and/or associated
companies
11
Business Group Structure
12
Chronology of share listing
13
Chronology of securities listing
The information including:
Number of employees for each level of
organization;
Number of employees for each level of
education;
Number of employees by its employee status;
Description and data of employee
competency development regarding to
equality opportunity for each level of
organization; and
Amount of spending for competency
development.
The information including:
Names of top 20 shareholders; and
Information on names of shareholders and
ownership percentage, including:
Shareholders having 5% (five percent) or
more shares of Issuer or Public Company;
Commissioners and Directors who own
shares of the Issuer or Public Company; and
Groups of public shareholders or groups
of shareholders, each with less than 5%
ownership shares of the Issuer or Public
Company.
The information include:
Name of subsidiaries and/or associated
companies;
Percentage ownership;
Business of subsidiaries and/or associated
companies; and
Business status of subsidiaries and/or
associated companies.
Business group structure in the form of
a chart that illustrates the subsidiaries,
associates, joint ventures, and special
purpose vehicle (SPV),
Including:
Chronology of share listing;
Type of corporate action that cause the
change of number of shares;
Changes in the number of shares from the
beginning of listing up to the end of the
financial year; and
Name of Stock Exchange where the company
shares are listed.
Including:
Chronology of securities listing;
Type of corporate action that cause the
change of number securities;
Changes in the number of securities from
the beginning of listing up to the end of the
financial year;
Name of Stock Exchange where the company
securities are listed; and
Rating of the securities.
16, 159-163
165-169
84-86, 87
76-82
76-77
43, 88
42-43
341
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL Criteria
Description
Name and address of capital market
supporting institutions and/or professionals
Awards and certifications of national
and international scale bestowed on the
company during the last fiscal year
Including:
Name and address of BAE;
Name and address of Public Accountant; and
Name and address of Rating Institution.
Including:
Name of awards and certifications;
Year;
Issuer of awards and certifications; and
Validity period.
Name and address of subsidiaries and/or
branch office or representative office (if
any)
Including:
Name and address of subsidiaries; and
Name and subsidiaries of branch office.
Page
43, 91
46-49, 177,
288-289
Management Discussion and analysis on Company’s Performance
Note: disclose if the company does not have
the subsidiary/branch/representative office.
operational reviewer per business segment
14
15
16
V
1
94-97
107-111
119-131
131-132
At least contains:
Description for each segment; and
Performance for each segment, including:
Production;
Increasing/decreasing in production capacity;
sales/Revenue; and
Profitability.
Comprehensive financial performance
analysis which includes a comparison
between the financial performance of the last
2 (two) fiscal years, and explanation on the
causes and effects of such changes, among
others concerning:
Current assets, non-current assets, and total
assets;
Short term liabilities, long term liabilities,
total liabilities;
Equity;
Sales/operating revenues, expenses and
profit (loss), other comprehensive revenues,
and total comprehensive profit (loss); and
Cash flows.
The explanation contains:
The capacity to pay long term and short term
debt, and
Receivable collectability rate.
2
Financial Performance Analysis
3
The capacity to pay debts by including the
computation of relevant ratios;
342
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS 4
5
6
7
8
Criteria
Description
Capital structure and management policies
concerning capital structure
Discussion on material ties for the
investment of capital goods
Discussion on realization of capital goods
investment
The explanation contains:
Details of capital structure consisting of
interest-based debt and equity; and
Management policies concerning capital
structure.
The explanation contains:
The purpose of the ties;
Source of funds expected to fulfill the ties;
Currency of denomination; and
Steps taken by the company to protect the
position of a related foreign currency against
risk.
Note: disclose if the company does not have
the materialities.
The explanation contains:
Type of capital goods investment;
Purpose of capital good investment; and
The value of the capital good investment.
Note: Discloe if there is no capital good
investment realization
Comparison between target/projection at
beginning of year and result (realization),
concerning income, profit, capital structure,
or others that deemed necessary for the
company
The explanation contains:
Comparison between target/projection at
beginning of year and result (realization); and
Target/projection to achieve for the next one
year.
Material information and facts that occuring
after the date of the accountant’s report
(subsequent events)
Description of significant events after the
date of the accountant’s report, including its
impact on performance and business risk in
the future.
Page
134
134-137
134-136
N/A
137
N/A
9
Information on company prospects
10
Information on marketing aspect
11
Description regarding the dividend policy
and the date and amount of cash dividend
per share and amount of dividend per year
as announced or paid during the past two
(2) years
Note: Disclose if there are no significant
events after the accountant’s report
Information on company prospects in
connection with industry, economy in general,
accompanied with supporting quantitative
data if there is a reliable data source;
Marketing aspect of the company’s products
and services, among others marketing
strategy and market share.
116-118
Contain the following information:
Dividend policy;
Amount of dividend payout;
Cash dividend per share;
Payout ratio; and
Dividend announcement and payment date
for each year.
Note: Disclose the reason if there is no
dividend distribution
21
343
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL Criteria
Description
12
Employee/management stock ownership
program (ESoP/MSoP)
13
Use of proceeds from public offerings:
14
15
Material information, among others
concerning investment, expansion,
divestment, acquisition, debt/capital
restructuring
Material information contains transactions
with related parties and transaction with
conflict of interest
16
Changes in regulation which have a
significant effect on the company
Contain the following information:
Number of shares for ESoP/MSoP and its
realization;
Period;
The requirement for employee/management
Exercise price
Note: Disclose if there is no ESoP/MSoP
Contain the following information:
Total proceed fund
Planning for fund utilization
The detail of fund utilization;
Fund balance; and
The date of approval of AGM / Bondholder
upon a change of use of funds (if any).
The explanation contains:
Transaction purpose;
Value of the transaction and amount of debt/
capital restructured; and
Source of funds.
Note: Disclose if does not have the intended
transaction.
The explanation contains:
Names of transacting parties and nature of
related parties;
Description of the fairness of the transaction;
Purpose of transaction;
Realization of transaction for the last financial
year;
Company policy related the review
mechanism of the transaction; and
Compliance with related rules and
regulations.
Note: Disclose if does not have the intended
transaction.
The explanation contains: changes in
regulation which have a significant effect on
the company.
Note: Disclose if there is no changes in
regulation which have a significant effect on
the company.
Page
86, 89
N/A
136-137
136-137
144-149
344
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Criteria
Description
17
Information of business sustainability
VI
1
Good Corporate Governance
Description of Board of Commissioners
2
3
4
Information Related to Independent
Commissioners
Description of Directors
Assessment of Board of Commissioners and
Directors Performance
Disclosure of information about:
Things that could potentially have a
significant effect on the continuity of the
company’s business in the last fiscal year;
Assessment management on things the 1st;
and
Assumptions used by management in
assessment
Note: Assumptions used by management in
assessment if there are not things potentially
significant effect on the company’s
sustainability in the financial last years, so
that the underlying assumptions disclosed
in the management believes that there are
things could potentially have a significant
effect on the continuity of the company in
the financial year
The description shall consist of:
A description of the responsibility of the
Board of Commissioners;
A disclosure of the procedure and basis
determining remuneration;
Remuneration structure shows the
components and the amount of remuneration
for members of the Board of Commissioners
Frequency of Board of Commissioners
meetings and attendance of the members of
the Board of Commissioner in the meetings;
Board of Commissioners Training and
competency Enhancement Programmes
or the orientation program for the new
Commissioners; and
Board of Charter Disclosure (guidance and
rules of Board of Commissioner)
The description shall consist of:
Determination of Independent Commissioner
Criteria; and
Independency statement from independent
Commissioners.
The description shall consist of:
Scope of duties and responsibilities of each
member of the Board of Directors;
Frequency of Board of Directors meetings
and attendance of the members of Board of
Directors in the meetings;
Director training and competency
enhancement programmes or the orientation
program for the new directors; and
Board Charter Disclosure (guidance and rules
of Board of Directors).
The description shall consist of:
Implementation procedures of performance
assessment;
Implementation of the assessment criteria;
and
The parties who conducts the assessment
Page
137-139
189-195
189, 191
196-210
191, 195,
200, 210
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL Criteria
Description
Page
5
A description of Board of Commissioners
and Directors remuneration policy
6
7
8
The frequency and level of attendance
of Commissioners’s meetings, Directors’s
meetings of, and join meetings between
Commissioners and Directors
Information of the majority and controlling
shareholder, either direct or indirect, and
the individual owner
Disclosure of affiliated Relationship between
Board of Directors members, Board of
Commissioners members and/or Majority/
controlling Shareholders
9
Audit Committee
200-201
The description shall consist of:
Disclosure of the remuneration of the Board
of Commissioners procedure;
Disclosure of Directors determination
procedures;
Remuneration structure shows the
components and the amount of remuneration
including long-term incentives and allowance
upon resignation for members of the Board
of Commissioners;
Remuneration structure shows the
components and the amount of remuneration
including long-term incentives and allowance
upon resignation for members of the Board
of Directors; and
A disclosure of the indicators on determining
remuneration
Information includes among others; shall
consist of:
Meeting Target;
Participants Meeting; and
Agenda.
For each meeting of the Board of
Commissioners, Directors, and joint meetings.
Presented in the form of scheme or diagram,
except for SoE
76-77, 84
Includes following items:
Affiliated relationship between Board of
Directors and Board of Commissioners
members
Affiliated relationship between Board of
Directors members and Majority and/or
Controlling shareholders
Affiliated relationship between Board of
Commissioners members
Affiliated relationship between Board of
Commissioners members and Majority/
Controlling shareholders
Note: If do not have respective affiliated
relationship, shall be disclosed
Includes following item:
Name and position of Audit Committee
members
Educational qualification and employment
history of Audit Committee members
Audit Committee members independency
Duties and responsibilities description
Audit Committee meeting frequency and
attendance level
211
212-214, 217,
220-221,
224
346
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Criteria
Description
Page
10
Nomination and Remuneration Committee
11
other committees under Board of
Commissioners
12
13
Description of tasks and function of the
Corporate Secretary
Information of the General Meeting of
Shareholders (AGM) in the previous year
14
Description of Internal Auditing unit
Includes following items:
Name, position and brief profile of
Nomination and Remuneration Committee
members;
Nomination and Remuneration Committee
members independency;
Duties and responsibilities description;
Nomination and Remuneration Committee
duties implementation report;
Nomination and Remuneration Committee
meeting frequency and attendance level
Statement of the guidelines committee /
function nomination / or remuneration; and
Policies regarding the succession of
Directors.
Includes following items:
Name, level, and brief profile of the members
of the committees
other committees members independency
Duties and responsibilities description
other committees duties implementation
report
other committees meeting frequency and
attendance level
The description shall consist of:
Name, domicile, and a brief History of
position title;
A brief of activities; and
Competence Enhancement of Corporate
Secretary.
Presented in the form of table which consists
of:
Previous AGM result;
Realization of the previous GMS; and
Reason of unrealized GMS decisions.
The description shall consist of:
Name of Head of Internal Audit Unit;
Numbers of employees;
Qualification/certification as an Internal
Audit;
Structure and position of Internal Auditing
Unit;
Brief description of tasks implementation of
Internal Auditing Unit; and
Parties who is appointed and dismissed of
Head of Internal Audit.
212, 217-219
215, 217,
222-223
226-228
181-188
230-235
347
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL Criteria
Description
Page
15
Public Accountant
16
Description of Risk Management system
17
Description of internal control system
18
Description of corporate social
responsibility toward the environment
19
Description of corporate social
responsibility toward Labor, Work Health
and Safety
The description shall consist of:
The number of public accounting period has
audited the annual financial statements;
The number of public accounting firm period
has audited the annual financial statements;
Numbers of audit fees and other audit fees;
and
other services that provided by public
accountant beside annual financial statement.
Note: If there are no other services
mentioned, should be disclosed.
The description shall consist of:
General description of risk management
system of the company;
Review on effectiveness of the company’s
risk management system;
Types of risks description; and
Efforts to manage such risks.
The description shall consist of:
operational and financial control, along with
compliance with other prevailing rules and
regulations;
Descriptions appropriateness of internal
control systems with the internationally
recognized framework (CoSo - internal
control framework); and
Review on effectiveness of internal control
system
The description shall consist of:
Management policies;
Types of programs, related with the
environmental programs of the operational
company activities, such as the use of
environmentally friendly and recyclable
material and energy, the company’s waste
management system; and
Certification in the field of environment.
The description shall consist of:
Management policies
Types of programs, related with labor,
work health and safety such as equality in
gender and work opportunity, work facility
and safety, employees turnover, level work
accident, training, etc.
236
237-254
229-230
290-292
293-297
348
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Criteria
Description
Page
20
Description of Corporate social
responsibility toward Social and Community
Development
The description shall consist of:
Management policies;
Types of program; and
Cost
Related with social and community
development such as the use of local work
force, empowerment of the company’s
surrounding community, improvement of
social facilities and infrastructure, other forms
of donations, etc.
298-304
21
Description of corporate social
responsibility toward customers
The description shall consist of:
Management policies; and
Types of program
22
Legal matters faced by the company
subsidiaries, Board of Commissioners and
board of Directors in the period of annual
report
23
Access to corporate information and data
24
Information on code of ethics
Related with product responsibility, such
consumer’s health and safety, product
information, facilities for customers
complaints, number of complaints and
complaints handling, etc.
The description shall consist of:
Name of case/claim;
Status of settlement of case/claim;
Impacts of the company; and
Administrative penalties charged to entities,
the Board of Commissioners and the board
of Directors, after the relevant authorities
(capital markets, banking and others) in the
last fiscal year (or the statements that are no
subject to administrative penalties).
Note: If there is no matter, please be
disclosed
A description of the access availability of
information and corporate data to the public,
such as website (in Indonesian and English),
mass media, mailing list, newsletter, meetings
with the analysts, and etc.
The description shall consist of:
Main points of code ethics;
The disclosure of the applicable o code of
conduct in all level of the organization;
Socialization of the code of conduct;
Enforcement and sanctions in violations of
the code of conduct; and
Statement on company’s corporate culture.
305-306
260-261
262-267
269-270
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL Criteria
Description
Page
25
Description of whistleblowing system
26
The diversity of composition of the Board of
Commissioners and Board of Directors
VII
1
2
3
Financial Information
Statement of the member of the Board of
Commissioners and Directors Regarding
Responsibility for Financial Statement
opinion of Independent Auditor of Financial
Statements
Descriptions of Independent Auditor’s
opinion
4
Full Financial Statements
5
Comparison of profitability ratio
The description shall consist of
whistleblowing system mechanism:
Mechanism for violation reporting;
Protection for the whistleblower;
Handling of violation reports;
Unit responsible for handling of violation
report; and
The number of violation reports received and
processed in the fiscal year and follow-up.
Description of the company’s policy on
diversity composition of the Board of
Commissioners and Board of Directors in
the education, working experience, age and
gender.
Note: If there are no company’s policies
mentioned, the reason should be disclosed.
271-272
66-69
Compliance with the relevant regulations of
the Responsibility for Financial Statements
Attachment
Financial
Attachment
Financial
Attachment
Description includes:
Name and Signature;
Audit report date; and
License number of the Public Accountant
Firm and license number of the Public
Accountant.
Includes all elements of the Financial
statements:
Balance sheet;
Comprehensive income statement;
Report on changes in equity;
Cash flow statement;
Notes to the financial statement; and
Financial position at the beginning of
the comparative periods presented if the
company implemented an accounting policy
retrospectively or restated an account in
the financial statement, or if the company
reclassified financial statement accounts (if
relevant).
Comparison of profit (loss) in the current and
previous years.
350
PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS Criteria
6
Cash flow report
7
Summary of accounting policy
8
Disclosure of related party transactions
9
Disclosure related to Taxation
Description
Page
Description of cash flow report should fulfill
the following provisions:
Classification of activities into three
categories: operating, investing and
financing;
Use of the direct method to report cash flow
from operating activities;
Separate presentation of cash income and/
or expenditure in the current year from
operating, investing and financing activities;
Disclosure of non-cash activities in the notes
to the financial statement.
Summary of accounting policy includes at
least the following:
Statement of compliance with FAS;
Basis of measurement and presentation of
the financial statement;
The income tax;
Fixed assets; and
Financial instruments.
Items that must be disclosed:
Name(s) of related parties and nature of
relationship with related parties;
Value of transactions and percentage of total
related income and expense;
Balance and percentage of total assets or
liabilities; and
Terms and conditions of related party
transactions.
Items that must be disclosed:
Explanation of the relationship between tax
expense (income) and accounting profit
Reconciliation between fiscal and current tax
assessment
Statement that the reconciled taxable profit
is the basis for the annual corporate income
tax return
Breakdown of deferred tax assets and
liabilities recognized in the balance sheet for
each period presented, and total deferred tax
expense (income) recognized in the income
statement if such amount is not shown in
the total deferred tax assets or liabilities
recognized in the financial statement
Disclosure of whether or not there are any
taxes disputes
Financial
Attachment
Page 7
Financial
Attachment
Page 20
Financial
Attachment
Page 100
Financial
Attachment
Page 78-86
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MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL Criteria
Description
Page
10
Disclosure of Fixed Assets
11
Disclosure related to operating segments
12
Disclosure related to the Financial
Instrument
13
Publication of the Financial Statement
Items that must be disclosed:
Depreciation method used;
Explanation of whether fair value model or
cost model have been adopted as accounting
policy;
Method and significant assumptions used
in estimating the fair value of fixed assets
(revaluation model) or disclosing the fair
value of fixed assets (cost model);
Reconciliation of recorded gross amount and
cumulative depreciation of fixed assets at the
beginning and end of the period by showing
addition, reduction and reclassification.
Items that must be disclosed:
General information which consists of factors
that are used in identifying reportable
segment;
Information of profit or loss, assets, and
liabilities reportable segment;
Reconciliation of total segment revenues,
reported segment, segment liabilities, and
other material elements of the segments
corresponding with the number in the
entities; and
Disclosure at the level of the entity, which
includes of information of products and/
or services, geographical area and main
customers.
Items that must be disclosed:
Requirements, conditions and policies for
each group of financial instruments
Classification of financial instruments
Fair value of each group of financial
instruments
Explanation of the risk related to the financial
instruments: market risk, credit risk and
liquidity risk
Purpose and policy on financial risk
management
Financial
Attachment
Page 27,
54-55
Financial
Attachment
Page 105-
107
Financial
Attachment
Page 118-
124
Items that must be disclosed:
Date of authorization for the publication of
the Financial Statements; and
Party responsible for authorizing the
Financial Statements.
Sheet of
Statement
Letter of
Directors
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PT Telkom Indonesia (Persero) TbkPREFACEMANAGEMENT REPORTGENERAL INFORMATION OF TELKOM INDONESIAFINANCIAL AND PERFORMANCE HIGHLIGHTS STATEMENT OF THE MEMBER OF
BOARD OF COMMISSIONERS AND DIRECTORS
REGARDING RESPONSIBILITy FOR ANNUAL REPORTING 2015
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA TBK
We hereby that all information has been fully disclosed in Annual Report 2015 Perusahaan Perseroan
(Persero) PT Telekomunikasi Indonesia Tbk and we are solely responsible for the accuracy of the content.
This statement is considered to be true and correct.
Jakarta, March 28, 2016
Board of Commissioners
Hendri Saparini
President Commissioner
Hadiyanto
Commissioner
Dolfie Othniel Fredric Palit
Commissioner
Margiyono Darsasumarja
Commissioner
Parikesit Suprapto
Independent Commissioner
Rinaldi Firmansyah
Independent Commissioner
Pamiyati Pamela Johanna Waluyo
Independent Commissioner
Board of Directors
Alex J. Sinaga
President Director
Heri Sunaryadi
Director of Finance
Muhammad Awaluddin
Director of Enterprise &
Business Service
Indra Utoyo
Director of Innovation
& Strategic Portfolio
Dian Rachmawan
Director of Consumer
Abdus Somad Arief
Director of Network IT
& Solution
Herdy Rosadi Harman
Director of Human
Capital Management
Honesti Basyir
Director of Wholesale &
International Service
353
MANAGEMENT DISCUSSION AND ANALYSIS OF TELKOM INDONESIA PERFORMANCEAPPENDICESPT Telkom Indonesia (Persero) TbkCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITY AND PKBL Perusahaan Perseroan (Persero)
PT Telekomunikasi Indonesia Tbk and its subsidiaries
Consolidated financial statements as of December 31, 2015 and
for the year then ended with independent auditor’s report
Statement ofthe Board of Directors
regarding the Board of Director's Responsibility for
Consolidated financial statements
as of December 3'1,2015 and forthe yearthen ended
Perusahaan Perseroan (Persero) PT Telekomunikasi lndonesia Tbk and its Subsidiaries
On behaf ofthe Board of D reclors we undersianed:
1. Name
Bus ness address
Address
Phone
Posit on
Narne
Business address
Address
We hereby slate as fo ows:
:AexJ Snaga
:Jl. Japat No.1 Bandung 40133
:Jl. Anggrek NelimurniB-70 No.38 Kelurahan Kemanggtsan
Kecamatan Palmerah. Jakarta Barat
\422) 452 7141
r President Director
: Her Sunaryadi
:Jl. Japati No.1 Band!ng 40133
: Jl. Graha Taman Blok HC8 No.s B ntaro Jaya Sektor I
Kelurahan Pondok Pucung Kecamatan Pondok Aren,
Tangerang Selatan
: 1022) 452 7201 I 421 52A 9824
: Director of Finance
1. We are responsible for the preparation and presentation of the conso idated linancial staternent of
PT Telekomun kasi lndones a Tbk (the Company ) and its subsidiaries:
The Company and its subs d aries' conso dated financial slatemenl have been prepared and presented
in accordance with ndonesian financial accountlng standards;
3. Alinformaton has been fullyand correcty disclosed n the Con-rpany and its subsidiares'consordated
financialstatementl
The Company and its subsdlares' consolidated financia stalemenl do not contain fase maleria
nforrnation orfacts, nor do they om t any materia nforrnation or facts;
5. We are responsible for the Company and its subs d aries' internal conlro system.
This statement s considered to be true and correct.
Jakatla, F ebt )aty 4, 2A 1 6
Alex J. Sinaga
President Director
eriSunaryadi
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2015 AND
FOR THE YEAR THEN ENDED WITH INDEPENDENT AUDITOR’S REPORT
TABLE OF CONTENTS
Page
Independent Auditor’s Report
Consolidated Statement of Financial Position .............................................................................
1-3
Consolidated Statement of Profit or Loss and Other Comprehensive Income ..............................
4
Consolidated Statement of Changes in Equity ............................................................................
5-6
Consolidated Statement of Cash Flows ......................................................................................
7
Notes to the Consolidated Financial Statements ......................................................................... 8-137
These consolidated financial statements are originally issued in Indonesian language
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of December 31, 2015
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Other current financial assets
Trade receivables - net of provision for
impairment of receivables
Related parties
Third parties
Other receivables - net of provision for
impairment of receivables
Inventories - net of provision for
obsolescence
Advances and prepaid expenses
Claim for tax refund
Prepaid taxes
Assets held for sale
Notes
2015
(As restated) (As restated)
2014
January 1,
2014
2c,2e,2u,
4,36,42
2c,2d,2e,2u,
5,36,42
2g,2u,2ab,2ac
6,16,19,20,28,42
2c,36
2g,2u,42
2h,7,16,19
20
2c,2i,8,36
2t,30
2t,30
2j,10
28,117
17,672
14,696
2,818
2,797
6,872
1,104
6,413
355
528
5,839
66
2,672
-
873
6,124
1,103
5,520
383
395
474
4,733
291
890
57
509
3,937
10
525
105
Total Current Assets
47,912
34,294
33,672
NON-CURRENT ASSETS
Long-term investments
Property and equipment - net of
accumulated depreciation
Prepaid pension benefit cost
Advances and other non-current
assets
Claims for tax refund - net of current portion
Intangible assets - net of
accumulated amortization
Deferred tax assets - net
Total Non-current Assets
TOTAL ASSETS
2f,9
2d,2l,2m,10
16,19,20
2s,2ab,33
2c,2i,2l,2n,2u
11,36,39,42
2t,30
2d,2k,2n,12
2t,2ab,30
1,807
1,767
304
103,700
1,331
94,809
1,170
86,761
949
7,153
1,013
3,056
201
6,479
745
2,463
95
4,795
499
1,508
67
118,261
107,528
94,883
166,173
141,822
128,555
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements
taken as a whole.
1
These consolidated financial statements are originally issued in Indonesian language
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
As of December 31, 2015
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables
Related parties
Third parties
Other payables
Taxes payable
Accrued expenses
Unearned income
Advances from customers and suppliers
Short-term bank loans
Current maturities of
long-term liabilities
Total Current Liabilities
Notes
2015
(As restated) (As restated)
2014
January 1,
2014
2ab,2o,2r,2u,13,42
2c,36
2u,42
2t,30
2c,2r,2u,14,
26,33,36,42
2r,15
2c,36
2c,2p,2u,
16,36,42
2c,2m,2p,2u,
17,36,42
2,075
11,919
290
3,273
8,247
4,360
805
897
11,465
114
2,376
5,211
3,963
583
1,029
11,168
388
1,698
5,264
3,490
472
602
1,810
432
3,842
5,899
5,093
35,413
32,318
29,034
NON-CURRENT LIABILITIES
Deferred tax liabilities - net
Other liabilities
Long service award provisions
Post-retirement health care benefit costs provisions
Pension and other post-employment benefits
Long-term liabilities - net of current maturities
Obligations under finance leases
Two-step loans
Bonds and notes
Bank loans
Total Non-current Liabilities
TOTAL LIABILITIES
2t,2ab,30
2r
2s,34
2s,2ab,35
2s,2ab,33
2u,17,42
2m,10
2c,2p,18,36
2p,19
2c,2p,20,36
2,110
382
501
118
4,053
3,939
1,296
9,499
15,434
2,654
394
410
441
3,870
4,218
1,408
2,239
7,878
2,876
472
336
993
3,392
4,321
1,702
3,073
5,635
37,332
23,512
22,800
72,745
55,830
51,834
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements
taken as a whole.
2
These consolidated financial statements are originally issued in Indonesian language
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
As of December 31, 2015
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
EQUITY
Capital stock - Rp50 par value per Series A
Dwiwarna share and Series B share
Authorized - 1 Series A Dwiwarna share and
399,999,999,999 Series B shares
Issued and fully paid - 1 Series A Dwiwarna
share and 100,799,996,399 Series B shares
Additional paid-in capital
Treasury stock
Effect of change in equity of
associated companies
Unrealized holding gain on
available-for-sale securities
Translation adjustment
Difference due to acquisition of non-controlling
interests in subsidiaries
Other reserves
Retained earnings
Appropriated
Unappropriated
Net equity attributable to:
Owners of the Parent Company
Non-controlling Interests
TOTAL EQUITY
Notes
2015
(As restated) (As restated)
2014
January 1,
2014
1c,22
2d,2v,23
2v,24
2f
2u
2f
1d,2d
1d
2ab,32
5,040
2,935
(3,804)
5,040
2,899
(3,836)
5,040
2,323
(5,805)
386
38
543
(508)
49
386
39
415
(508)
49
386
38
391
(508)
49
15,337
55,120
15,337
47,900
15,337
42,572
2b,21
75,136
18,292
67,721
18,271
59,823
16,898
93,428
85,992
76,721
TOTAL LIABILITIES AND EQUITY
166,173
141,822
128,555
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements
taken as a whole.
3
These consolidated financial statements are originally issued in Indonesian language
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Year Ended December 31, 2015
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
REVENUES
2c,2r,25,36
102,470
89,696
Notes
2015
2014
(As restated)
Operations, maintenance and
telecommunication service expenses
Depreciation and amortization expenses
Personnel expenses
Interconnection expenses
General and administrative expenses
Marketing expenses
Gain (loss) on foreign exchange - net
Other income
Other expenses
OPERATING PROFIT
Finance income
Finance costs
Share of loss of associated companies
PROFIT BEFORE INCOME TAX
INCOME TAX (EXPENSE) BENEFIT
Current
Deferred
PROFIT FOR THE YEAR
2c,2h,2r,7,27,36
2k,2l,2m,2r,
10,11,12
2c,2r,2s,2ab,14,26,
33,34,35,36
2c,2r,29,36
2c,2g,2r,2t,
6,28,36
2r
2q
2r,10c
2r,10c,39c
2c,36
2c,2r,36
2f,9
2t,2ab,30
OTHER COMPREHENSIVE INCOME
Other comprehensive income to be reclassified to profit
or loss in subsequent periods:
Foreign currency translation
Change in fair value of available-for-sale financial assets
Share of other comprehensive income
of associated companies
Other comprehensive income not to be reclassified to profit
or loss in subsequent periods:
Defined benefit plan actuarial gain, net of tax
Other comprehensive income - net
1d,2b,2f
2u
2f,9
2s,2ab,33,35
(28,116)
(22,288)
(18,534)
(17,131)
(11,874)
(3,586)
(4,204)
(3,275)
(46)
1,500
(1,917)
(9,787)
(4,893)
(3,963)
(3,092)
(14)
1,074
(396)
32,418
29,206
1,407
(2,481)
(2)
1,238
(1,814)
(17)
31,342
28,613
(8,365)
340
(8,025)
23,317
(7,616)
277
(7,339)
21,274
128
(1)
(2)
506
631
24
1
-
742
767
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
23,948
22,041
Profit for the year attributable to:
Owners of the parent company
Non-controlling interests
Total comprehensive income for the year attributable to:
Owners of the parent company
Non-controlling interests
BASIC AND DILUTED EARNINGS PER SHARE
(in full amount)
Net income per share
Net income per ADS (200 Series B shares per ADS)
2b,2ab,21
2b,2ab,21
15,489
7,828
23,317
16,130
7,818
23,948
14,471
6,803
21,274
15,296
6,745
22,041
2x,2ab,31
157.77
31,553.37
148.13
29,625.16
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements
taken as a whole.
4
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended December 31, 2015
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
Attributable to owners of the parent company
Descriptions
Notes
Capital
stock
Treasury associated
stock
companies securities
Additional
paid-in
capital
Effect of
change in
equity of
Unrealized
holding
gain on
available-
for-sale
Difference
due to
acquisition of
non-
controlling
Translation interests in
adjustment subsidiaries
Retained earnings
Other
reserves
Appropriated Unappropriated
Net
Non-
controlling
interests
Total
equity
Balance, January 1, 2015
(As restated)
Paid in capital for
associated companies
Ca sh dividends
2w,32
Sales of treasury stock
24
Profit for the year
1d,2b,21
Other comprehensive
income
2f,2q,2s,2u,21
5,040
2,899
(3,836)
386
39
415
(508)
49
15,337
47,900
67,721
18,271
85,992
-
-
-
-
-
-
-
-
-
36
32
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
128
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34
34
(8,783)
(8,783)
(7,831)
(16,614)
-
68
-
68
15,489
15,489
7,828
23,317
514
641
(10)
631
Balance, December 31, 2015
5,040
2,935
(3,804 )
386
38
543
(508)
49
15,337
55,120
75,136
18,292
93,428
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole.
5
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended December 31, 2015
(Figures in tables are expressed in billions of rupiah, unless otherwise stated)
Attributable to owners of the parent company
Descriptions
Notes
Capital
stock
Treasury associated
stock
companies securities
Additional
paid-in
capital
Effect of
change in
equity of
Unrealized
holding
gain on
available-
for-sale
Difference
due to
acquisition of
non-
controlling
Translation interests in
adjustment subsidiaries
Retained earnings
Other
reserves
Appropriated Unappropriated
Net
Non-
controlling
interests
Total
equity
Balance, December 31, 2013
5,040
2,323
(5,805)
386
38
391
(508)
49
15,337
43,291
60,542
16,882
77,424
Adjustment in relation to
implementation of
Statement of Financial
Accounting Standards (“PSAK”)
No. 24 Employee Benefits
(Revised 2013)
2ab
-
-
-
-
-
-
-
-
-
(719)
(719)
16
(703)
Balance, January 1, 2014,
(As restated)
Paid in capital for
associated companies
Ca sh dividends
2w,32
Sales of treasury stock
24
Profit for the year
1d,2b,21
Other comprehensive
income
2f,2q,2s,2u,21
Balance, December 31, 2014
(As restated)
5,040
2,323
(5,805)
386
38
391
(508)
49
15,337
42,572
59,823
16,898
76,721
-
-
-
-
-
-
-
-
-
576
1,969
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
24
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
113
113
(9,943)
(9,943)
(5,485)
(15,428)
-
2,545
-
2,545
14,471
14,471
6,803
21,274
800
825
(58)
767
5,040
2,899
(3,836 )
386
39
415
(508)
49
15,337
47,900
67,721
18,271
85,992
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole.
6
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOW
For the Year Ended December 31, 2015
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
Notes
2015
2014
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from:
Customers
Other operators
Total cash receipts of revenues
Interest income received
Other cash receipts (payments) - net
Cash payments for expenses
Cash payments to employees
Payments for corporate and final income taxes
Payments for interest costs
Payment for value added taxes - net
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property and equipment
Proceeds from insurance claims
Proceeds from sale (acquisition) of other assets
Dividends received from associated company
Acquisition of property and equipm ent
Acquisition of intangible assets
Placements in time deposit and assets available-for-sale
Acquisition of business, net of acquired cash
Increase in advances for purchases of property and equipment
Acquisition of long-term investments
Proceeds from time deposits
Placements in escrow account
Divestment of long-terms investments
Proceeds from sale of available-for-sale financial assets
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank loans
Proceeds from bonds
Proceeds from short-term bank loans
Proceeds from medium term notes
Proceeds from sale of treasury stock
Capital contribution of non-controlling interests in subsidiaries
Proceeds from promissory notes
Cash dividends paid to the Company’s stockholder
Cash dividends paid to non-controlling interests of subsidiaries
Repayments of two-step and bank loans
Repayments of short-term bank loans
Repayments of bonds
Payments of obligations under finance leases
Payments of promissory notes
Net cash used in financing activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF PERIOD
98,002
2,700
100,702
1,386
575
(35,922)
(10,940)
(9,299)
(2,623)
(210)
84,748
4,379
89,127
1,236
(48)
(33,124)
(9,594)
(7,436)
(1,911)
(514)
43,669
37,736
733
119
36
18
(26,499)
(1,439)
(146)
(114)
(67)
(62)
-
-
-
-
501
212
(8)
-
(24,798)
(1,328)
-
(110)
(1,808)
(1,487)
6,178
(2,121)
5
16
(27,421)
(24,748)
10,698
6,985
2,558
320
68
5
-
(8,783)
(7,831)
(4,749)
(3,987)
(1,005)
(610)
(76)
6,626
-
3,580
220
2,541
74
28
(9,943)
(5,485)
(4,538)
(2,247)
-
(668)
(271)
(6,407)
(10,083)
9,841
2,905
604
17,672
28,117
71
14,696
17,672
30f
10
10
11
9
10
12
1d
9
5
20
19
16
19
24
19
32
18,20
16
19
10
19
4
4
The accompanying notes to the consolidated financial statements, form an integral part of these consolidated financial statements taken as
a whole.
7
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL
a. Establishment and general information
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (the “Company”) was originally part
of “Post en Telegraafdienst”, which was established and operated commercially in 1884 under the
framework of Decree No. 7 dated March 27, 1884 of the Governor General of the Dutch Indies. Decree
No. 7 was published in State Gazette No. 52 dated April 3, 1884.
In 1991, the status of the Company was changed into a state-owned limited liability corporation
(“Persero”) based on Government Regulation No. 25/1991. The ultimate parent of the Company is the
Government of the Republic of Indonesia (the “Government”) (Notes 1c and 22).
The Company was established based on notarial deed No. 128 dated September 24, 1991 of Imas
Fatimah, S.H. Its deed of establishment was approved by the Ministry of Justice of the Republic of
Indonesia in its Decision Letter No. C2-6870.HT.01.01.Th.1991 dated November 19, 1991 and was
published in State Gazette No. 5 dated January 17, 1992, Supplement No. 210. The Articles of
Association has been amended several times, the latest amendment of which was about, among
others, in compliance with the Financial Services Authority Regulations and the Ministry of State-Owned
Enterprises Regulations and Circular Letters, addition of main and supporting business activities of the
Company, addition of special right of Series A Dwiwarna stockholders, revision regarding the change in
authority limitation of the Board of Directors which requires approval from the Board of Commissioners
in performing such managing activities of the Company as well as improvement in the editorial and
systematic of Articles of Association related to the addition of Articles of Association substance based
on notarial deed No.20 dated May 12, 2015 of Ashoya Ratam, S.H., MKn. The latest amendment was
accepted and approved by the Ministry of Law and Human Rights of the Republic of Indonesia
(“MoLHR”) in its Letter No. AHU-AH.01.03-0938775 dated June 9, 2015 and MoLHR decision’s No.
AHU-0936901.AH.01.02.Th.2015 dated June 9, 2015.
In accordance with Article 3 of the Company’s Articles of Association, the scope of its activities are to
provide telecommunication network and telecommunication and information services, and to optimize
the Company’s resources in accordance with prevailing regulations. In regards to achieving this
objective, the Company is involved in the following activities:
a. Main business:
i. Planning, building, providing, developing, operating, marketing or selling, leasing, and
maintaining telecommunications and information networks in a broad sense in accordance with
prevailing regulations.
ii. Planning, developing, providing, marketing/selling, and improving telecommunications and
iii.
information services in a broad sense in accordance with prevailing regulations.
Investing including equity capital in other companies in line with achieving the purposes and
objectives of the Company.
b. Supporting business:
i. Providing payment transactions and money transferring services through telecommunications
and information networks.
ii. Performing activities and other undertakings in connection with the optimization of the
Company's resources, which among others, include the utilization of the Company's property
and equipment and moving assets, information systems, education and training, and repairs
and maintenance facilities.
iii. Collaborating with other parties in order to optimize the information, communication or
technology resources owned by other parties as service provider in information, communication
and technology industry as to achieving the purposes and objectives of the Company.
The Company’s head office is located at Jalan Japati No. 1, Bandung, West Java.
8
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
a. Establishment and general information (continued)
The Company was granted several networks and/or services licenses by the Government of the
Republic of Indonesia which are valid for an unlimited period of time as long as the Company complies
with prevailing laws and fulfills the obligation stated in those licenses. For every license, an evaluation is
performed annually and an overall evaluation is performed every 5 (five) years. The Company is obliged
to submit reports of networks and/or services annually to the Indonesian Directorate General of Post
and Informatics (“DGPI”), which replaced the previous Indonesian Directorate General of Post and
Telecommunications (“DGPT”).
The reports comprise information such as network development progress, service quality standard
achievement, numbers of customers, license payment and universal service contribution, while for
internet telephone services for public purpose, Internet Interconnection Service, and Internet Access
Service, there are additional informations required such as operational performance, customer
segmentation, traffic, and gross revenue.
Details of these licenses are as follows:
License
License No.
Type of services
Grant date/latest
renewal date
Local fixed line and
October 28, 2010
License to operate
local fixed line and
basic telephone
services network
License to operate
fixed domestic
long distance and
basic telephone
services network
License to operate
fixed international
and basic telephone
services network
License to operate
fixed closed
network
License to operate
internet telephone
services for public
purpose
License to operate
as internet service
provider
License to operate
data communication
system services
License to operate
packet switched
based local fixed
line network
License to operate
network access
point
381/KEP/
M.KOMINFO/
10/2010
382/KEP/
M.KOMINFO/
10/2010
basic telephone
services network
Fixed domestic long
distance and basic
telephone services
network
383/KEP/
M.KOMINFO/
10/2010
Fixed international
and basic telephone
services network
398/KEP/
M.KOMINFO/
11/2010
384/KEP/DJPT/
M.KOMINFO/
11/2010
83/KEP/DJPPI/
KOMINFO/
4/2011
169/KEP/DJPPI/
KOMINFO/
6/2011
331/KEP/
M.KOMINFO/
07/2011
331/KEP/
M.KOMINFO/
09/2013
Fixed closed
network
Internet telephone
services for
public purposes
Internet service
provider
Data communication
system services
Packet switched
based local fixed
line network
Internet connection
services
9
October 28, 2010
October 28, 2010
November 12, 2010
November 29, 2010
April 7, 2011
June 6, 2011
July 27, 2011
September 24, 2013
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
b. Company’s Board of Commissioners, Directors, Audit Committee, Corporate Secretary and
Employees
1. Board of Commissioners and Directors
Based on resolutions made at Annual General Meeting (“AGM”) of Stockholders of the Company as
covered by notarial deed No. 26 of of Ashoya Ratam, S.H., MKn., dated on April 17, 2015, and the
Extraordinary General Meeting (“EGM”) as covered by notarial deed No. 35 of Ashoya Ratam, S.H.,
MKn., dated on December 19, 2014, the composition of the Company’s Board of Commissioners
and Directors as of December 31, 2015 and 2014, respectively, were as follows:
President Commissioner
Commissioner
Commissioner
Commissioner
Independent Commissioner
Independent Commissioner
Independent Commissioner
President Director
Director of Finance
Director of Innovation and
Strategic Portfolio
Director of Enterprise and
Business Service
Director of Wholesale and
International Services
Director of Human Capital
Management
Director of Network, Information
Technology and Solution
Director of Consumer
Services
2015
2014
Hendri Saparini
Dolfie Othniel Fredric Palit
Hadiyanto
Margiyono Darsasumarja
Rinaldi Firmansyah
Parikesit Suprapto
Pamiyati Pamela Johanna
Alex Janangkih Sinaga
Heri Sunaryadi
Hendri Saparini
Dolfie Othniel Fredric Palit
Hadiyanto
Imam Apriyanto Putro
Virano Gazi Nasution
Parikesit Suprapto
Johnny Swandi Sjam
Alex Janangkih Sinaga
Heri Sunaryadi
Indra Utoyo
Indra Utoyo
Muhammad Awaluddin
Muhammad Awaluddin
Honesti Basyir
Honesti Basyir
Herdy Rosadi Harman
Herdy Rosadi Harman
Abdus Somad Arief
Abdus Somad Arief
Dian Rachmawan
Dian Rachmawan
2. Audit Committee and Corporate Secretary
The composition of the Company’s Audit Committee and the Corporate Secretary as of
December 31, 2015 and 2014, were as follows:
Chair
Secretary
Member
Member
Member
Corporate Secretary
2015*
2014
Rinaldi Firmansyah
Tjatur Purwadi
Parikesit Suprapto
Dolfie Othniel Fredric Palit
-
Andi Setiawan
Johnny Swandi Sjam
Tjatur Purwadi
Parikesit Suprapto
Virano Gazi Nasution
Agus Yulianto
Honesti Basyir
* The changes of Audit Committee is based on Board of Commissioners’ Regulation No.10/KEP/DK/2015 dated September 30, 2015.
10
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
b. Company’s Board of Commissioners, Directors, Audit Committee, Corporate Secretary and
Employees
3. Employees
As of December 31, 2015 and 2014, the Company and subsidiaries (“Group”) had 24,785
employees and 25,284 employees (unaudited), respectively.
c. Public offering of securities of the Company
The Company’s shares prior to its Initial Public Offering (“IPO”) totalled 8,400,000,000, consisting of
8,399,999,999 Series B shares and 1 Series A Dwiwarna share, and were wholly-owned by the
Government. On November 14, 1995, 933,333,000 new Series B shares and 233,334,000 Series B
shares owned by the Government were offered to the public through an IPO and listed on the Indonesia
Stock Exchange (“IDX”) and 700,000,000 Series B shares owned by the Government were offered to
the public and listed on the New York Stock Exchange (“NYSE”) and the London Stock Exchange
(“LSE”), in the form of American Depositary Shares (“ADS”). There were 35,000,000 ADS and each
ADS represented 20 Series B shares at that time.
In December 1996, the Government had a block sale of its 388,000,000 Series B shares, and in 1997,
distributed 2,670,300 Series B shares as incentive to the Company’s stockholders who did not sell their
shares within one year from the date of the IPO. In May 1999, the Government further sold 898,000,000
Series B shares.
To comply with Law No. 1/1995 on Limited Liability Companies, at the AGM of Stockholders of the
Company on April 16, 1999, the Company’s stockholders resolved to increase the Company’s issued
share capital by the distribution of 746,666,640 bonus shares through the capitalization of certain
additional paid-in capital, which were made to the Company’s stockholders in August 1999. On August
16, 2007, Law No. 1/1995 on Limited Liability Companies was amended by the issuance of Law No.
40/2007 on Limited Liability Companies which became effective on the same date. Law No. 40/2007
has no effect on the public offering of shares of the Company. The Company has complied with Law
No. 40/2007.
In December 2001, the Government had another block sale of 1,200,000,000 shares or 11.9% of the
total outstanding Series B shares. In July 2002, the Government further sold a block of 312,000,000
shares or 3.1% of the total outstanding Series B shares.
At the AGM of Stockholders of the Company held on July 30, 2004, the minutes of which are covered
by notarial deed No. 26 of A. Partomuan Pohan, S.H., LLM., the Company’s stockholders approved the
Company’s 2-for-1 stock split for Series A Dwiwarna and Series B share. The Series A Dwiwarna share
with par value of Rp500 per share was split into 1 Series A Dwiwarna share with par value of Rp250 per
share and 1 Series B share with par value of Rp250 per share. The stock split resulted in an increase of
the Company’s authorized capital stock from 1 Series A Dwiwarna share and 39,999,999,999 Series B
shares to 1 Series A Dwiwarna share and 79,999,999,999 Series B shares, and the issued capital stock
from 1 Series A Dwiwarna share and 10,079,999,639 Series B shares to 1 Series A Dwiwarna share
and 20,159,999,279 Series B shares. After the stock split, each ADS represented 40 Series B shares.
During the EGM held on December 21, 2005 and the AGM held on June 29, 2007, June 20, 2008, and
May 19, 2011, the Company’s stockholders approved phase I, II, III and IV plan, respectively, of the
Company’s program to repurchase its issued Series B shares (Note 24).
11
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
c. Public offering of securities of the Company (continued)
During the period December 21, 2005 to June 20, 2007, the Company had bought back
211,290,500 shares from the public (stock repurchase program phase I). On July 30, 2013, the
Company has sold all such shares (Note 24).
At the AGM held on April 19, 2013 as covered by notarial deed No. 38 dated April 19, 2013 of
Ashoya Ratam, S.H., MKn., the stockholders approved the changes to the Company’s plan on the
treasury stock acquired under phase III (Note 24).
At the AGM held on April 19, 2013, the minutes of which are covered by notarial deed No.38 of
Ashoya Ratam, S.H., MKn., the stockholders approved the Company’s 5-for-1 stock split for
Series A Dwiwarna and Series B shares. Series A Dwiwarna share with par value of Rp250 per
share was split into 1 Series A Dwiwarna share with par value of Rp50 per share and 4 Series B
shares with par value Rp50 per share. The stock split resulted in an increase of the Company’s
authorized capital stock from 1 Series A Dwiwarna and 79,999,999,999 Series B shares to 1
Series A Dwiwarna and 399,999,999,999 Series B shares, and the issued capital stock from 1
Series A Dwiwarna and 20,159,999,279 Series B shares to 1 Series A Dwiwarna and
100,799,996,399 Series B shares. After the stock split, each ADS represented 200 Series B
shares.
On May 16 and June 5, 2014, the Company deregistered from Tokyo Stock Exchange (“TSE”)
and delisted from the LSE, respectively.
As of December 31, 2015, all of the Company’s Series B shares are listed on the IDX and
40,806,810 ADS shares are listed on the NYSE (Note 22).
On June 25, 2010 the Company issued the second rupiah bonds with a nominal amount of
Rp1,005 billion for Series A, a five-year period and Rp1,995 billion for Series B, a ten-year period,
respectively, are listed on the IDX (Note 19a).
On June 16, 2015, the Company issued Continuous Bonds I Telkom Phase I 2015, with a nominal
amount Rp2,200 billion for Series A, a seven-year period, Rp2,100 billion for Series B, a ten-year
period, Rp1,200 billion for Series C, a fifteen-year period and Rp1,500 billion for Series D,
a thirty-year period, respectively, are listed on the IDX (Note 19a).
On December 21, 2015, the Company has sold the remaining shares of treasury stock phase III
(Note 24).
d. Subsidiaries
As of December 31, 2015 and 2014, the Company has consolidated the following directly or
indirectly owned subsidiaries (Note 2b and 2d):
(i) Direct subsidiaries:
Subsidiary/place of
incorporation
PT Telekomunikasi
Selular (“Telkomsel”)
Jakarta, Indonesia
Nature of business/
date of incorporation
or acquisition by
the Company
Year of
start of
commercial
operations
Percentage of
ownership interest
Total assets
before elimination
2015
2014
2015
2014
1995
65
65
84,086
79,352
Telecommunication -
provides
telecommunication
facilities and mobile
cellular services
using Global Systems
for Mobile
Communication
(“GSM”) technology/
May 26, 1995
12
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(i) Direct subsidiaries: (continued)
Subsidiary/place of
incorporation
Nature of business/
date of incorporation
or acquisition by
the Company
commercial
operations
Year of
start of
Percentage of
ownership interest
Total assets
before elimination
2015
2014
2015
2014
PT Dayamitra
Telekomunikasi
(“Dayamitra”),
Jakarta, Indonesia
Telecommunication/
May 17, 2001
1995
100
100
9,341
8,836
PT Multimedia Nusantara
Network
1998
100
100
8,563
6,294
(“Metra”),
Jakarta, Indonesia
PT Telekomunikasi
Indonesia International
(“TII”),
Jakarta, Indonesia
PT Telkom Akses
(“Telkom Akses”),
Jakarta, Indonesia
PT Graha Sarana Duta
(“GSD”),
Jakarta, Indonesia
telecommunication
services and multimedia/
May 9, 2003
Telecommunication/
July 31, 2003
Construction,
service and trade in
the field of
telecommunication/
November 26, 2012
Leasing of offices
and providing building
management and
maintenance services,
civil consultant and
developer/
April 25, 2001
PT PINS Indonesia
(“PINS”) previously
PT Pramindo Ikat
Nusantara
Jakarta, Indonesia
Telecommunication
construction and
services/
August 15, 2002
PT Infrastruktur
Telekomunikasi
Indonesia
(“Telkom Infratel”)
Jakarta, Indonesia
Construction,
service and trade in
the field of
telecommunication/
January 16, 2014
PT Patra Telekomunikasi
Indonesia (“Patrakom”)
Jakarta, Indonesia
Telecomunication-
provides satellite
communication system,
services and facilities/
September 28, 1995
1995
100
100
5,604
4,549
2013
100
100
3,696
2,089
1982
99.99
99.99
3,581
2,310
1995
100
100
2,960
3,129
2014
100
100
647
331
1996
100
100
472
345
PT Napsindo Primatel
Internasional
(“Napsindo”),
Jakarta, Indonesia
1999; ceased
operations on
January 13,
2006
Telecommunication -
provides Network
Access Point (NAP),
Voice Over Data
(VOD) and other
related services/
December 29, 1998
.
60
60
5
5
13
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(ii) Indirect subsidiaries:
Nature of business/
date of incorporation
or acquisition by
the Company
Year of
start of
commercial
operations
Percentage of
ownership interest
Total assets
before elimination
2015
2014
2015
2014
Information technology
service - system
implementation and
integration service,
outsourcing and
software license
maintenance/
May 1,1987
Data and information
service - provides
telecommunication
information services
and other information
services in the form of
print and electronic
media and call
center services/
September 22,1999
Telecommunication/
December 6, 2007
1988
100
100
3,587
2,513
1984
100
100
1,622
1,354
2008
100
100
1,618
1,058
Subsidiary/place of
incorporation
PT Sigma Cipta Caraka
(“Sigma”),
Tangerang, Indonesia
PT Infomedia Nusantara
(“Infomedia”),
Jakarta, Indonesia
Telekomunikasi
Indonesia
International Pte. Ltd.,
Singapore
PT Telkom Landmark
Tower (“TLT”),
Jakarta, Indonesia
Service for property
development and
management/
February 1, 2012
2012
55
55
1,245
828
Telekomunikasi
Indonesia
International (“TL”) S.A.,
Telecommunication/
September 11, 2012
Timor Leste
PT Metra Digital Media
(“MD Media”),
Jakarta, Indonesia
Directory information
services/
January 22, 2013
2012
100
100
854
832
2013
99.99
99.99
618
722
PT Finnet Indonesia
(“Finnet”),
Jakarta, Indonesia
Information technology
services/
October 31, 2005
Telekomunikasi Indonesia
International Ltd.,
Telecommunication/
December 8, 2010
Hong Kong
2006
2010
60
60
513
208
100
100
326
242
Telekomunikasi Indonesia Telecommunication/
2013
100
100
171
190
Internasional Pty Ltd.
(“Telkom,
Australia”) Australia
PT Nusantara
Sukses Investasi
(”NSI”)
Jakarta, Indonesia
January 9, 2013
Service and trading/
September 1, 2014
PT Administrasi Medika
(“Ad Medika”),
Jakarta, Indonesia
Health insurance
administration services/
February 25, 2010
2014
99.99
99.99
165
115
2002
75
75
160
136
14
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(ii) Indirect subsidiaries: (continued)
Subsidiary/place of
incorporation
Nature of business/
date of incorporation
or acquisition by
the Company
commercial
operations
Year of
start of
Percentage of
ownership interest
Total assets
before elimination
PT Graha Yasa Selaras
(“GYS”)
Jakarta, Indonesia
Tourism service/
April 27, 2012
PT Metra Plasa
(“Metra Plasa”),
Jakarta, Indonesia
Network & e-commerce
services/
April 9, 2012
2012
2012
2015
2014
2015
2014
51
51
160
60
60
85
88
88
PT MetraNet (“Metranet”), Multimedia portal service/
2009
99.99
99.99
66
42
Jakarta, Indonesia
April 17, 2009
Telekomunikasi
Indonesia
International
(“Telkom USA”) Inc.
USA
PT Sarana Usaha
Sejahtera
Insanpalapa
(”TelkoMedika”)
Jakarta, Indonesia
Telecommunication/
December 11, 2013
2014
100
100
52
1
Health services,
2008
75
-
49
-
medicine services including
pharmacies, laboratories
and other health care
support/
November 30, 2015
PT Pojok Celebes
Tour agent/bureau
2008
51
51
18
13
Mandiri (“PCM”)
Jakarta, Indonesia
services/
August 16, 2013
PT Satelit Multimedia
Indonesia (“SMI”)
Jakarta, Indonesia
PT Metra Digital
Investama (“MDI”)
previously PT Metra
Media
Jakarta, Indonesia
Satellite services/
March 25, 2013
Trading and/or providing
service related to
information and tehnology
multimedia, entertainment
and investment/
January 8, 2013
2013
99.99
99.99
13
2013
99.99
99.99
4
7
0
PT Metra TV
(“Metra TV”)
Jakarta, Indonesia
Subscription-broadcasting
services/ January 8, 2013
2013
99.83 99.83
-
-
PT Nusantara
Building and hotel
-
99.99
99.99
-
-
Sukses Sarana
(”NSS”)
Jakarta, Indonesia
management service,
and other services/
September 1, 2014
PT Nusantara
Sukses Realti
(”NSR”)
Jakarta, Indonesia
Service and trading/
September 1, 2014
-
99.99
99.99
-
-
15
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(a) Metra
On June 5, 2014, based on the Circular Resolution of the Stockholders of Metra as covered
by notarial deed No. 18 of N.M. Dipo Nusantara Pua Upa, S.H., M.Kn., which was approved
by the MoLHR through its Letter No. AHU-03769.40.20.2014 dated June 10, 2014, PT Metra
Media’s stockholders approved the change of name from PT Metra Media to PT Metra Digital
Investama (“MDI”).
On December 12, 2014, based on the Circular Resolution of the Stockholders of Metra as
covered by notarial deed No. 24 dated December 12, 2014 of N.M. Dipo Nusantara Pua Upa,
S.H., M.Kn., which has been approved by
its Letter
No. AHU-09792.40.21.2014 dated December 17, 2014, Metra’s stockholders approved an
increase in its authorized capital to 350,000,000 shares, amounting to Rp3.5 trillion which
was taken proportionately by each of the shareholders and approved an increase in its issued
and paid capital to 273,307,349 shares amounting to Rp2.7 trillion.
the MoLHR
through
On November 30, 2015, Metra acquired 13,850 shares of TelkoMedika (equal to 75%
ownership) with acquisition cost amounting to Rp69.5 billion. TelkoMedika engaged in health
services, procurement and medicine services, including the establishment of pharmacies,
hospital, clinic, or other healthcare support.
(b) Sigma
Sigma has amended its Articles of Association several times, the latest amandment of which
was notarized by deed No. 02 dated December 4, 2014 of Utiek Rochmuljati Abdurachman,
SH., MLI., MKn., regarding the changes in the authorized capital, stock and the issued and
fully paid capital stock. The latest amandment of the Articles of Association was approved by
MoLHR through its Letter No. AHU-12707.40.20.2014 dated December 11, 2014.
Based on notarial deed No. 09 dated December 18, 2015 of Utiek Rochmuljati Abdurachman,
SH., MLI, MKn., approved by MoLHR through its decision letter No. AHU-AH.01.03-09904427
dated December 22, 2015, Sigma bought 55% ownership of PT Media Nusantara Data
Global’s (“MNDG”), which is engaged in data center services.
The acquisition cost amounting to Rp45 billion and the fair value of identifiable net assets
amounting to Rp30 billion resulting a goodwill of Rp15 billion (Note 12).
(c) Dayamitra
Regarding the Conditional Shares Exchange Agreement (“CSEA”) with PT Tower Bersama
Infrastructure Tbk (“TBI”), the transaction was terminated by the Company due to
nonfulfillment of the terms stated in the CSEA.
16
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
(d) Telkom Infratel
On January 16, 2014, the Company established a wholly-owned subsidiary under the name
PT Telkom Infrastruktur Telekomunikasi Indonesia (“Telkom Infratel”) which was approved by
the MoLHR through its Decision Letter No. AHU-03196.AH.01.01.2014 dated January 23,
2014 with 100% ownership. Telkom Infratel is engaged in providing construction, service and
trade in the field of telecommunication.
(e) GSD
On August 27, 2014, based on notarial deed No. 21 dated August 27, 2014 of Zulkifli
Harahap, S.H., which was approved by the MoLHR in its Letter No. AHU-22722.40.10.2014
dated September 1, 2014, GSD established a subsidiary, PT Nusantara Sukses Sarana
(“NSS”) with 99.99% ownership. NSS is engaged in building and hotel management services
and other services. As of the date of approval and authorization for the issuance of the
consolidated financial statements, NSS has not commenced operational activities.
On August 27, 2014, based on notarial deed No. 22 dated August 27, 2014 of Zulkifli
Harahap, S.H., which was approved by the MoLHR in its Letter No. AHU-22723.40.10.2014
dated September 1, 2014, GSD established a subsidiary, PT Nusantara Sukses Realti
(“NSR”) with 99.99% ownership. NSR is engaged in service and trading. As of the date of
approval and authorization for the issuance of the consolidated financial statements, NSR has
not commenced operational activities.
On August 27, 2014, based on notarial deed No. 23 dated August 27, 2014 of Zulkifli
Harahap, S.H., which was approved by the MoLHR in its Letter No. AHU-22724.40.10.2014
dated September 1, 2014, GSD established a subsidiary, PT Nusantara Sukses Investasi
(“NSI”) with 99.99% ownership. NSI is engaged in service and trading.
(f) Telin
On May 19, 2015, Pachub Acquisition Co. was incorporated, with Telekomunikasi Indonesia
International (USA) obtaining 100% direct ownership.
On May 29, 2015, Telkom USA and Pachub Acquisition Co entered into an agreement and
plan of merger with AP Teleguam Holdings, Inc. As of the date of the issuance of these
consolidated financial statements, the plan of merger is still being evaluated by the local
authorities.
e. Authorization for the issuance of the consolidated financial statements
The consolidated financial statements were prepared and approved for issuance by the Board of
Directors on February 26, 2016.
17
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of the Company and subsidiaries (collectively referred to as “the
Group”) has been prepared in accordance with Financial Accounting Standards (“Standar Akuntansi
Keuangan” or “SAK”) including Indonesian Financial Accounting Standards (“Pernyataan Standar
Akuntansi Keuangan” or “PSAK”) and Interpretation of Financial Accounting Standards (“Interpretasi
Standar Akuntansi Keuangan” or “ISAK”) in Indonesia published by Financial Accounting Standard
Board of Indonesian Institute of Accountants and Regulation No. VIII.G.7 of the Capital Market and
Financial Institution Supervisory Agency (“Bapepam-LK”) regarding the Presentationand Disclosures
of Financial Statements of Issuers or Public Companies, enclosed in the decision letter KEP-
347/BL/2012.
a. Basis of preparation of financial statements
The consolidated financial statements, except for the consolidated statements of cash flows, are
prepared on the accrual basis. The measurement basis used is historical cost, except for certain
accounts, which are measured using the basis mentioned in the relevant notes herein.
The consolidated statements of cash flows are prepared using the direct method and present the
changes in cash and cash equivalents from operating, investing and financing activities.
Figures in the consolidated financial statements are presented and rounded to billions of
Indonesian rupiah (“Rp”), unless otherwise stated.
The consolidated financial statements provide comparative information in respect of the previous
period. In addition, the Group presents an additional statement of financial position at the
beginning of the earliest period presented when there is retrospective application of an accounting
policy, a retrospective statement, or a reclassification of items in the financial statements. An
additional statement of financial position as of Januari 1, 2014, is presented in these consolidated
financial statements due to the retrospective application of PSAK 24, Employee Benefits (Revised
2013) and PSAK 50, Financial Instruments: Presentation (Revised 2014) (Note 2ab).
Accounting Standards Issued but not yet Effective
Accounting standards and interpretations that have been approved by the Financial Accounting
Standards Board ("DSAK"), but not yet effective for the current year's financial statements
disclosed below. The Group intends to apply such standards, if deemed relevant, once has
become effective.
Effective January 1, 2016:
• Amendments to PSAK 4: Separate Financial Statements of Equity Method in Separate
Financial Statements.
The amendments allow the use of the equity method as a method of recording the
investment in subsidiaries, joint ventures and associates in the separate financial
statements of the entity.
18
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
a. Basis of preparation of financial statements (continued)
Accounting standards issued but not yet effective (continued)
Effective January 1, 2016 (continued):
• Amendments to PSAK 15: Investments in Associates and Joint Ventures on Investment
Entities: The Application of Consolidation Exception.
The amendments provide clarification on consolidation exception for investment entities
when certain criterias are met.
• Amendments to PSAK 16: Property, Plant and Equipment on Clarification of the Accepted
Depreciation and Amortization Methodology.
The amendments provide additional explanation of the approximate indication of the
technical or commercial obsolescence of an asset. The amendments also clarify that use
of the depreciation method based on revenue is not appropiate.
• Amendments to PSAK 19: Intangible Assets on Clarification of the Accepted Depreciation
and Amortization Methodology.
The amendments provide clarification on the presumption that revenue is not appropriate
reflects the consumption of the economic benefits embodied in the intangible assets is
rebutted in certain limited circumstances.
• Amendments to PSAK 24: Employee Benefits on a Defined Benefit Plans: Contribution
from Employees.
The amendments simplify the accounting for the contribution from employees or third
parties that independent on the number of years of service, for example contributions from
employees that are fixed percentage of the employee’s salary.
• Amendments to PSAK 65: Consolidated Financial Statements on Investment Entities:
Application Consolidation Exceptions.
The amendments clarify the consolidation exceptions for investment entities when certain
criterias are met.
• Amendments to PSAK 66: Joint Arrangement on Accounting for Acquisition of Interests in
Joint Operations.
The amendments require that all principles on business combinations accounting in PSAK
22: Business Combinations and other PSAKs and the disclosures requirements applicable
to the acquisition of the initial interest and additional interest in a joint operation, to the
extent that do not conflict with the guidance in this PSAK.
• Amendments to PSAK 67: Disclosure of Interests in Other Entities on Investment Entities:
Application of Consolidation Exceptions.
The amendments clarify the consolidation exceptions for investment entities when certain
criterias are met.
• PSAK 5 (Adjustment 2015): Operating Segments.
The PSAK adds the disclosure of brief description on aggregated operating segments and
indicators for similar economic characteristics.
• PSAK 7 (Adjustment 2015): Related Party Disclosures.
The PSAK adds requirements
compensation paid by the management entity.
for related parties and clarify
the disclosure of
19
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
a. Basis of preparation of financial statements (continued)
Accounting standards issued but not yet effective (continued)
Effective January 1, 2016 (continued):
• PSAK 13 (Adjustment 2015): Investment Property.
The PSAK provides clarification that PSAK 13 and PSAK 22 are interrelated. An entity
may refer to PSAK 13 to determine whether or not property is investment property or
owner-occupied property. Entity may also refer to PSAK 22 to determine whether or not
the acquisition of investment property is a business combination.
• PSAK 16 (Adjustment 2015): Plant, Property and Equipment.
The PSAK provides clarification of the revaluation model, that when an entity uses the
revaluation model, the carrying amount of the asset is restated on revalued amount.
• PSAK 19 (Adjustment 2015): Intangible Assets.
The PSAK provides clarification of the revaluation model, that when an entity uses the
revaluation model, the carrying amount of the asset is restated on revalued amount.
• PSAK 22 (Adjustment 2015): Business Combinations.
The PSAK clarifies the scope and the obligation to pay contingent consideration that
meets the definition of a financial instruments are recognized as a financial liability or as
equity.
• PSAK 25 (Adjustment 2015) Accounting Policies, Changes in Accounting Estimates and
Errors.
The PSAK provides editorial revision on the limitations of retrospective application.
• PSAK 53 (Adjustment 2015): Share Based Payment.
The PSAK clarifies the definition of vesting conditions and define performance and
service conditions separately.
• PSAK 68 (Adjustment 2015): Fair Value Measurement.
The PSAK clarifies that the portfolio exception, which permits an entity to measure the fair
value of a group of financial assets and financial liabilities on a net basis, applied to all
contracts (including non-financial contracts) within the scope of PSAK 55.
•
ISAK 30: Levy.
The ISAK is an interpretation of PSAK 57 Provisions, Contingent Liabilities and
Contingent Assets which clarifies the accounting for liability to pay levy, other than income
taxes within the scope of PSAK 46: Income Tax and other penalties on violations of law,
to the Government.
Effective January 1, 2017:
• Amendments to PSAK 1 Presentation of Financial Statements on Disclosure Initiative.
The amendments provide clarification on the application of the requirements of materiality,
the flexibility of systematic order of the notes to the financial statements and the
identification of significant accounting policies.
20
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
a. Basis of preparation of financial statements (continued)
Effective January 1, 2017 (continued):
•
ISAK 31: Interpretation on the Scope of PSAK 13: Investment Property.
The ISAK provides an interpretation of the characteristics of the building used as part of
the definition of investment property in PSAK 13: Investment Property. The building as
investment property refer to structures that have physical characteristics generally
associated as a building with the walls, floors, and roofs are attached to the assets.
Circular Letter of The Financial Services Authority ("CL FSA")
On September 1, 2015, FSA issued Circular Letter No. 27/SE OJK.04/2015 on "Accounting
for Leased-out Telecommunication Tower Assets". CL FSA states
leased-out
telecommunication tower assets of the issuers and/or its subsidiaries shall be presented as
investment property. This CL FSA is effective for the financial statements with the annual period
ending on or after December 31, 2015. Management has evaluated and determined that the
telecommunication tower assets leased-out to third parties are presented as part of property and
equipment in these consolidated financial statements since the amount is not significant.
that
the
b. Principles of consolidation
The consolidated financial statements consist of the financial statements of the Company and the
subsidiaries over which it has control. Control is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those
returns through its power over the investee. Specifically, the Group controls an investee if and
only if the Group has the power over the investee, exposure or rights, to variable returns from its
involvement with the investee, and the ability to use its power over the investee to affect its
returns.
The Group re-assesses whether it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control. Consolidation of a subsidiary
begins when the Group obtains control over the subsidiary and ceases when the Group loses
control over the subsidiary. Assets, liabilities, income and expenses, of a subsidiary acquired or
disposed of during the year are included in the consolidated financial statements from the date the
Group gain control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the
equity holders of the Company and to the non-controlling interests, even if this results in the non-
controlling interests having a deficit balance.
Intercompany balances and transactions have been eliminated in the consolidated financial
statements.
21
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
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 at the carrying
amounts on the date when it loses control;
• derecognizes the carrying amounts of any non-controlling interests of its former subsidiary on
the date when it loses control;
• recognizes the fair value of the consideration received (if any) from the transaction, events, or
condition that caused the loss of control;
• recognizes the fair value of any investment retained in the subsidiary at fair value on the date of
loss of control;
• recognizes any surplus or deficit in profit or loss that is attributable to the Group.
c. Transactions with related parties
The Group has transactions with related parties. The definition of related parties used is in
accordance with the Bapepam-LK’s Regulation No. VIII.G.7 regarding the Presentations and
Disclosures of Financial Statements of Issuers or Public companies, enclosed in the decision
letter No. KEP-347/BL/2012. The party which is considered as a related party is a person or entity
that is related to the entity that is preparing its financial statements.
Under the Regulation of Bapepam-LK No.VIII.G.7, a government-related entity is an entity that is
controlled, jointly controlled or significantly influenced by a government. Government in this
context is the Minister of Finance or the Local Government, as the shareholder of the entity.
Formerly, the Group in its disclosure applied the definition of related party used based on PSAK 7
“Related Party”.
Key management personnel are identified as the persons having authority and responsibility for
planning, directing and controlling the activities of the entity, directly or indirectly, including any
director (whether executive or otherwise) of the Group. The related-party status extends to the key
management of the subsidiaries to the extent they direct the operations of subsidiaries with
minimal involvement from the Company’s management.
d. Business combinations
Business combination is accounted for using the acquisition method. The consideration
transferred is measured at fair value, which is the aggregate of the fair value of the assets
transferred, liabilities incurred or assumed and the equity instruments issued in exchange for
control of the acquiree. For each business combination, non-controlling interest is measured at fair
value or at the proportionate share of the acquiree’s identifiable net assets. The choice of
measurement basis is made on a transaction-by-transaction basis. Acquisition-related costs are
expensed as incurred. The acquiree’s identifiable assets and liabilities are recognized at their fair
values at the acquisition date.
22
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
d. Business combinations (continued)
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration
transferred and the amount recognized for non-controlling interests, and any previous interest
held, over the net identifiable assets acquired and liabilities assumed. If the fair value of net assets
acquired is in excess of the aggregate consideration transferred, the Group re-assess whether it
has correctly identified all of the assets acquired and all of the liabilities assumed, and reviews the
procedures used to measure the amounts to be recognized at the acquisition date. If the re-
assessment still results in an excess of the fair value of net assets acquired over the aggregate
consideration transferred, then the gain is recognized in profit and loss.
When the determination of consideration from a business combination includes contingent
consideration, it is measured at its fair value on acquisition date. Contingent consideration is
classified either as equity or a financial liability. Amounts classified as a financial liability are
subsequently remeasured to fair value with changes in fair value recognized in profit or loss when
adjustments are recorded outside the measurement period. Changes in the fair value of the
contingent consideration
that qualify as measurement-period adjustments are adjusted
retrospectively, with corresponding adjustments made against goodwill. Measurement-period
adjustments are adjustments that arise from additional information obtained during the
measurement period, which cannot exceed one year from the acquisition date, about facts and
circumstances that existed at the acquisition date.
In a business combination achieved in stages, the acquirer remeasures its previously held equity
interest in the acquiree at its acquisition-date fair value and recognizes the resulting gain or loss, if
any, in profit or loss.
Based on PSAK 38 (Revised 2012), “Common Control Business Combination”, the transfer of
assets, liabilities, shares or other ownership instruments among the companies under common
control would not result in a gain or loss. Since the restructuring transaction between entities
under common control does not result in a change of the economic substance of the ownership of
assets, liabilities, shares or other instruments of ownership, which are exchanged, assets or
liabilities transferred are recorded at book value using the pooling-of-interests method. In applying
the pooling-of-interests method, the components of the financial statements for the period during
which the restructuring occurred must be presented in such a manner as if the restructuring has
occurred since the beginning of the earliest period presented. The excess of consideration paid or
received over the carrying value of interest acquired, net of income tax, is directly recognized to
equity and presented as “Additional Paid-in Capital” under the equity section of the consolidated
statement of financial position.
At the initial application of PSAK 38 (Revised 2012), all balances of the Difference In Value of
restructuring Transactions of Entities under Common Control was reclassified to “Additional Paid-
in Capital” in the consolidated statement of financial position.
23
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
e. Cash and cash equivalents
Cash and cash equivalents comprises cash on hand and in banks and all unrestricted time
deposits with original maturities of three months or less at the time of placement.
Time deposits with maturities of more than three months but not more than one year are
presented as part of “Other Current Financial Assets” in the consolidated statement of financial
position.
f.
Investments in associated companies
An associate is an entity over which the Group (as investor) has significant influence. Significant
influence is the power to participate in the financial and operating policy decisions of the investee,
but does not include control or joint control over those operating policies. The considerations
made in determining significant influence are similar to those necessary to determine control over
subsidiaries.
The Group’s investments in its associates are accounted for using the equity method.
Under the equity method, the investment in an associate is initially recognized at cost. The
carrying amount of the investment is adjusted to recognize changes in the investor’s share of the
net assets of the associate since the acquisition date. On acquisition of the investment, any
difference between the cost of the investment and the entity's share of the net fair value of the
investee's identifiable assets and liabilities is accounted for as follows:
a. Goodwill relating to an associate or a joint venture is included in the carrying amount of the
investment and is neither amortized nor individually tested for impairment.
b. Any excess of the entity's share of the net fair value of the investee's identifiable assets and
liabilities over the cost of the investment is included as income in the determination of the
entity's share of the associate or joint venture's profit or loss in the period in which the
investment is acquired.
The consolidated statements of profit or loss and other comprehensive income reflect the Group’s
share of the results of operations of the associate. Any change in the other comprehensive
income of the associate is presented as part of other comprehensive income. In addition, when
there has been a change recognized directly in the equity of the associate, the Group recognizes
it share of the change in the consolidated statements of changes in equity. Unrealized gain and
losses resulting from transactions between the Group and the associate are eliminated to the
extent of the interest in the associate.
The Group determines at each reporting date whether there is any objective evidence that the
investments in associated companies are impaired. If there is, the Group calculates and
recognizes the amount of impairment as the difference between the recoverable amount of the
investments in the associated companies and their carrying value.
These assets are included in “Long-term Investments” in the consolidated statements of financial
position.
The functional currency of PT Citra Sari Makmur (“CSM”) is the United States dollar (“U.S.
dollars”), and Telin Malaysia is the Malaysian ringgit (“MYR”). For the purpose of reporting these
investments using the equity method, the assets and liabilities of these companies as of the
statement of financial position date are translated into Indonesian rupiah using the rate of
exchange prevailing at that date, while revenues and expenses are translated into Indonesian
rupiah at the average rates of exchange for the year. The resulting translation adjustments are
reported as part of “translation adjustment” in the equity section of the consolidated statements of
financial position.
24
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Trade and other receivables
Trade and other receivables are recognized initially at fair value and subsequently measured at
amortized cost, less provision for impairment. This provision for impairment is made based on
management’s evaluation of the collectibility of the outstanding amounts. Receivables are written
off in the year they are determined to be uncollectible.
h.
Inventories
Inventories consist of components, which are subsequently expensed or reclassified into property
and equipment upon use. Components represent telephone terminals, cables, and other spare
parts. Inventories also include Subscriber Identification Module (“SIM”) cards, handsets, set top
boxes, wireless broadband modems, and blank prepaid vouchers.
The costs of inventories comprise of the purchase price, import duties, other taxes, transport,
handling, and other costs directly attributable to their acquisition. Inventories are recognized at the
lower of cost and net realizable value. Net realizable value is the estimate of selling price less the
costs to sell.
Cost is determined using the weighted average method.
The amounts of any write-down of inventories below cost to net realizable value and all losses of
inventories are recognized as expense in the period in which the write-down or loss occurs. The
amount of any reversal of any write-down of inventories, arising from an increase in net realizable
value, is recognized as a reduction in the amount of general and administrative expenses in the
year in which the reversal occurs.
Provision for obsolescence is primarily based on the estimated forecast of future usage of these
items.
i. Prepaid expenses
Prepaid expenses are amortized over their future beneficial periods using the straight-line method.
j. Assets held for sale
Assets (or disposal groups) are classified as held for sale when their carrying amount is to be
recovered principally through a sale transaction rather than through continuing use and a sale is
considered highly probable. They are stated at the lower of carrying amount and fair value less
costs to sell.
Assets that meet the criteria to be classified as held for sale are reclassified from property and
equipment and depreciation on such assets is ceased.
25
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
k.
Intangible assets
Intangible assets mainly consist of software and license. Intangible assets are recognized if it is
highly probable that the expected future economic benefits that are attributable to each asset will
flow to the Group, and the cost of the asset can be reliably measured.
Intangible assets are stated at cost less accumulated amortization and impairment losses, if any.
Intangible assets are amortized over their estimated useful lives. The Group estimates the
recoverable value of its intangible assets. When the carrying amount of an intangible asset
exceeds its estimated recoverable amount, the asset is written down to its estimated recoverable
amount.
Intangible assets are amortized using the straight-line method, based on the estimated useful lives
of the intangible assets as follows:
Software
License
Other intangible assets
Years
3-6
3-20
1-30
Intangible assets are derecognized on disposal, or when no further economic benefits are
expected, either from further use or from disposal. The difference between the carrying amount
and the net proceeds received from disposal is recognized in the consolidated statement of profit
or loss and other comprehensive income.
l. Property and equipment
Property and equipment are stated at cost less accumulated depreciation and impairment losses.
The cost of an item of property and equipment includes: (a) purchase price, (b) any costs directly
attributable to bringing the asset to its location and condition, and (c) the initial estimate of the
costs of dismantling and removing the item and restoring the site on which it is located. Each part
of an item of property and equipment with a cost that is significant in relation to the total cost of the
item is depreciated separately.
Property and equipment, except land rights, are depreciated using the straight-line method based
on the estimated useful lives of the assets as follows:
Buildings
Leasehold improvements
Switching equipment
Telegraph, telex and data communication equipment
Transmission installation and equipment
Satellite, earth station and equipment
Cable network
Power supply
Data processing equipment
Other telecommunications peripherals
Office equipment
Vehicles
Asset Customer Premises Equipment (“CPE”)
Other equipment
Years
15-40
2-15
3-15
5-15
3-25
3-20
5-25
3-20
3-20
5
2-5
4-8
4-5
2-5
Significant expenditures related to leasehold improvements are capitalized and depreciated over
the lease term.
26
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
l. Property and equipment (continued)
The depreciation method, useful life and residual value of an asset are reviewed at least at each
financial year-end and adjusted, if appropriate. The residual value of an asset is the estimated
amount that the Group would currently obtain from disposal of the asset, after deducting the
estimated costs of disposal, if the asset is already of the age and in the condition expected at the
end of its useful life.
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 value unless, (i) the exchange
transaction lacks commercial substance; or (ii) the fair value of neither the asset received nor the
asset given up is reliably measurable.
Major spare parts and standby equipment that are expected to be used for more than 12 months
are recorded as part of property and equipment.
When assets are retired or otherwise disposed of, their cost and the related accumulated
depreciation are derecognized from the consolidated statement of financial position and the
resulting gains or losses on the disposal or sale of the property and equipment are recognized in
the consolidated statement of profit or loss and other comprehensive income.
Certain computer hardware can not be used without the availability of certain computer software.
In such circumstance, the computer software is recorded as part of the computer hardware. If the
computer software is independent from its computer hardware, it is recorded as part of intangible
assets.
The cost of maintenance and repairs is charged to the consolidated statement of profit or loss and
other comprehensive income as incurred. Significant renewals and betterments are capitalized.
Property under construction is stated at cost until construction is completed, at which time it is
reclassified to the property and equipment account to which it relates. During the construction
period until the property is ready for its intended use or sale, borrowing costs, which include
interest expense and foreign currency exchange differences incurred on loans obtained to finance
the construction of the asset, as long as it meets the definition of a qualifying asset are, capitalized
in proportion to the average amount of accumulated expenditures during the period. Capitalization
of borrowing cost ceases when the construction is completed and the asset is ready for its
intended use.
m. Leases
In determining whether an arrangement is, or contains a lease, the Group performs an evaluation
over the substance of the arrangement. A lease is classified as a finance lease or operating lease
based on the substance, not the form of the contract. Finance lease is recognized if the lease
transfers substantially all the risks and rewards incidental to the ownership of the leased asset.
Assets and liabilities under a finance lease are recognized in the consolidated statement of
financial position at amounts equal to the fair value of the leased assets or, if lower, the present
value of the minimum lease payments. Any initial direct costs of the Group are added to the
amount recognized as assets.
Minimum lease payments are apportioned between the finance charge and the reduction of the
outstanding liability. The finance charge is allocated to each period during the lease term so as to
produce a constant periodic rate of interest on the remaining balance of the liability. Contingent
rents are charged as expenses in the year in which they are incurred.
27
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
m. Leases (continued)
Leased assets are depreciated using the same method and based on the useful lives as
estimated for directly acquired property and equipment. However, if there is no reasonable
certainty that the Group will obtain ownership by the end of the lease term, the leased assets are
fully depreciated over the shorter of the lease terms and their economic useful lives.
Lease arrangements that do not meet the above criteria are accounted for as operating leases for
which payments are charged as an expense on the straight-line basis over the lease period.
n. Deferred charges - land rights
Costs incurred to process the initial legal land rights are recognized as part of the property and
equipment and are not amortized. Costs incurred to process the extension or renewal of legal land
rights are deferred and amortized over the shorter of the legal term of the land rights or the
economic life of the land.
o. Trade payables
Trade payables are obligations to pay for goods or services that have been acquired from
suppliers in the ordinary course of business. Trade payables are classified as current liabilities if
payment is due within one year or less (or in the normal operating cycle of the business, if this
period is longer). If not, they are presented as non-current liabilities.
Trade payables are recognized initially at fair value and subsequently measured at amortized cost
using the effective interest rate method.
p. Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are
subsequently carried at amortized cost; any difference between the proceeds (net of transaction
costs) and the redemption value is recognized in the consolidated statement of profit or loss and
other comprehensive income over the period of the borrowings using the effective interest
method.
Fees paid on obtaining loan facilities are recognized as transaction costs of the loan to the extent
that it is probable that some or all of the facilities will be drawn down. In this case, the fee is
deferred until the drawdown occurs. To the extent there is no evidence that it is probable that
some or all of the facilities will be drawn down, the fee is capitalized as a pre-payment for liquidity
services and amortized over the period of the facilities to which it relates.
28
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
q. Foreign currency translations
Indonesia
International Pte., Singapore, and Telekomunikasi
The functional currency and the recording currency of the Group are both the Indonesian rupiah,
except for the functional currency of Telekomunikasi Indonesia International Pte. Ltd., Hong Kong,
Telekomunikasi
Indonesia
International S.A., Timor Leste whose accounting records are maintained in U.S. dollars and
Telekomunikasi Indonesia International, Pty. Ltd., Australia whose accounting records is
maintained in Australian dollars. Transactions in foreign currencies are translated into Indonesian
rupiah at the rates of exchange prevailing at transaction date. At the consolidated statement of
financial position date, monetary assets and liabilities denominated in foreign currencies are
translated into Indonesian rupiah based on the buy and sell rates quoted by Reuters prevailing at
the consolidated statement of financial position date, as follows (in full amount):
U.S. dollar (“US$”) 1
Australian dollar (“AU$”) 1
Euro 1
Yen 1
2015
2014
Buy
Sell
Buy
Sell
13,780
10,076
15,049
114.47
13,790
10,092
15,064
114.56
12,380
10,143
15,044
103.53
12,390
10,155
15,059
103.64
The resulting foreign exchange gains or losses, realized and unrealized, are credited or charged
to the consolidated statement of profit or loss and other comprehensive income of the current
year, except for foreign exchange differences incurred on borrowings during the construction of
qualifying assets which are capitalized to the extent that the borrowings can be attributed to the
construction of those qualifying assets (Note 2l).
r. Revenue and expense recognition
i. Cellular and fixed wireless telephone revenues
Revenues from postpaid service, which consist of usage and monthly charges, are recognized
as follows:
• Airtime and charges for value added services are recognized based on usage by
subscribers.
• Monthly subscription charges are recognized as revenues when incurred by subscribers.
Revenues from prepaid service, which consist of the sale of starter packs (also known as SIM
cards and start-up load vouchers) and pulse reload vouchers, are recognized initially as
unearned income and recognized as revenue based on total of successful calls made and the
value added services used by the subscribers or the expiration of the unused stored value of
the voucher.
ii. Fixed line telephone revenues
Revenues from usage charges are recognized as customers incur the charges. Monthly
subscription charges are recognized as revenues when incurred by subscribers.
Revenues from fixed line installations are deferred and recognized as revenue on the straight-
line basis over the expected term of the customer relationships. Based on reviews of historical
information and customer trends, the Company determined the term of the customer
relationships is 18 years. Starting 2015, revenues from fixed line installation are not deferred,
and recognized as revenue when received as the amount is not significant.
29
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition (continued)
iii.
Interconnection revenues
from network
interconnection with other domestic and
Revenues
international
telecommunications carriers are recognized monthly on the basis of the actual recorded traffic
for the month. Interconnection revenues consist of revenues derived from other operators’
subscriber calls to the Group’s subscribers (incoming) and calls between subscribers of other
operators through the Group’s network (transit).
iv. Data, internet and information technology service revenues
Revenues from data communication and internet are recognized based on service activity and
performance which are measured by the duration of internet usage or based on the fixed
amount of charges depending on the arrangements with customers.
Revenues from sales, installation and implementation of computer software and hardware,
computer data network installation service and installation are recognized when the goods are
delivered to customers or the installation takes place.
Revenue from computer software development service is recognized using the percentage-of-
completion method.
v. Network revenues
Revenues from network consist of revenues from leased lines and satellite transponder leases
which are recognized over the period in which the services are rendered.
vi. Other telecommunications revenues
Revenues from sales of handsets or other telecommunication equipment are recognized when
delivered to customers.
Revenues from tower lease are recognized on straight-line basis over the lease period in
accordance with the agreement with the customers.
Revenues from other telecommunications services are recognized when services are
rendered to customers.
30
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition (continued)
vii. Multiple-element arrangements
Where two or more revenue-generating activities or deliverables are sold under a single
arrangement, each deliverable that is considered to be a separate unit of accounting is
accounted for separately. The total revenue is allocated to each separately identifiable
component based on the relative fair value of each component and the appropriate revenue
recognition criteria are applied to each component as described above.
viii. Agency relationship
Revenues from an agency relationship are recorded based on the gross amount billed to the
customers when the Group acts as principal in the sale of goods and services. Revenues are
recorded based on the net amount retained (the amount paid by the customer less amount
paid to the suppliers) when, in substance, the Group has acted as agents and earned
commission from the suppliers of the goods and services sold.
ix. Customer loyalty programme
The Group operates a loyalty programme, which allows customers to accumulate points for
every certain multiple of the telecommunication services usage. The points can be redeemed
in the future for free or discounted products or services, provided other qualifying conditions
are achieved.
Consideration received is allocated between the telecommunication services and the points
issued, with the consideration allocated to the points equal to their fair value. Fair value of the
points is determined based on historical information about redemption rate of award points.
Fair value of the points issued is deferred and recognized as revenue when the points are
redeemed or expired.
x. Expenses
Expenses are recognized as they are incurred.
s. Employee benefits
i. Short-term employee benefits
All short-term employee benefits which consist of salaries and related benefits, vacation pay,
incentives and other short-term benefits are recognized as expense on undiscounted basis
when employees have rendered service to the Group.
ii. Post-employment benefit plans and other long-term employee benefits
Post-employment benefit plans consist of funded and unfunded defined benefit pension plans,
defined contribution pension plan, other post-employment benefits, post-employment health
care benefit plan, defined contribution health care benefit plan and obligations under the Labor
Law.
Other long-term employee benefits consist of Long Service Awards (“LSA”), Long Service
Leave (“LSL”), and pre-retirement benefits.
The cost of providing benefits under post-employment benefit plans and other long-term
employee benefits calculation is performed by an independent actuary using the projected unit
credit method.
31
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
s. Employee benefits (continued)
ii. Post-employment benefit plans and other long-term employee benefits (continued)
The net obligations in respect of the defined pension benefit plans and post-retirement health
care benefit plans are calculated at the present value of estimated future benefits that the
employees have earned in return for their service in the current and prior periods less the fair
value of plan assets. The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rates of Government bonds that
are denominated in the currencies in which the benefits will be paid and that have terms to
maturity approximating the terms of the related retirement benefit obligation. Government
bonds are used as there are no deep markets for high quality corporate bonds.
Plan assets are assets owned by defined benefit pension and post-retirement health care
benefits as well as qualifying insurance policy. The assets measured at their fair value as of
reporting dates. The fair value of qualifying insurance policy is deemed to be the present value
of the related obligations (subject to any reduction required if the amounts receivable under
the insurance policies are not recoverable in full).
Remeasurement, comprising of actuarial gain and losses, the effect of the asset ceiling
(excluding amounts included in net interest on the net defined benefit liability (asset)) and the
return on plan assets (excluding amounts included in net interest on the net defined benefit
liability (asset)) are recognized immediately in the consolidated statements of financial position
with a corresponding debit or credit to retained earnings through OCI in the period in which
they occur. Remeasurements are not classified to profit or loss in subsequent periods.
Past service costs are recognized immediately in profit or loss on the earlier of:
• The date of plan amendment or curtailment; and
• The date that the Group recognized restructuring-related costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or
assets.
Gain or losses on curtailment are recognized 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
defined benefit plan terms such as 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.
Gain or losses on settlement are recognized when there is a transaction that eliminates all
further legal or constructive obligation for part or all of the benefits provided under a defined
benefit plan (other than the payment of benefit in accordance with the program and included in
the actuarial assumptions).
For defined contribution plans, the regular contributions constitute net periodic costs for the
period in which they are due and, as such are included in personnel expenses as they
become payable.
iii. Share-based payments
The Company operates an equity-settled, share-based compensation plan. The fair value of
the employees’ services rendered which are compensated with the Company’s shares is
recognized as an expense in the consolidated statements of profit or loss and other
comprehensive income and credited to additional paid-in capital at the grant date.
32
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
s. Employee benefits (continued)
iv. Early retirement benefits
Early retirement benefits are accrued at the time the Company and subsidiaries makes a
commitment to provide early retirement benefits as a result of an offer made in order to
encourage voluntary redundancy. A commitment to a termination arises when, and only when
a detailed formal plan for the early retirement cannot be withdrawn.
t.
Income tax
Current and deferred income taxes are recognized as income or an expense and included in the
consolidated statements of profit or loss and other comprehensive income, except to the extent
that the tax arises from a transaction or event which is recognized directly in equity, in which case,
the tax is recognized directly in equity.
Current tax assets and liabilities are measured at the amounts expected to be recovered or paid
using the tax rates and tax laws that have been enacted at each reporting date. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. Where appropriate, management establishes provisions
based on the amounts expected to be paid to the tax authorities.
The Group recognizes deferred tax assets and liabilities for temporary differences between the
financial and tax bases of assets and liabilities at each reporting date. The Group also recognizes
deferred tax assets resulting from the recognition of future tax benefits, such as the benefit of tax
losses carried forward to the extent their future realization is probable. Deferred tax assets and
liabilities are measured using enacted or substantively enacted tax rates and tax laws at each
reporting date which are expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled.
The carrying amount of deferred tax asset is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to
allow the benefit of part or all of that deferred tax asset to be utilized.
Deferred tax assets and liabilities are offset in the consolidated statement of financial position,
except if these are for different legal entities, in the same manner the current tax assets and
liabilities are presented.
Amendment to tax obligation is recorded when an assessment letter (“Surat Ketetapan Pajak” or
“SKP”) is received or if appealed against, when the results of the appeal are determined. The
additional taxes and penalty imposed through an SKP are recognized in the current year profit or
loss, unless objection/appeal is taken. The additional taxes and penalty imposed through the SKP
are deferred as long as they meet the asset recognition criteria.
Final income tax on construction services and lease are presented as part of “Other Expenses”.
u. Financial instruments
The Group classifies financial instruments into financial assets and financial liabilities. Financial
assets and liabilities are recognized initially at fair value including transaction costs. These are
subsequently measured either at fair value or amortized cost using the effective interest rate
method in accordance with their classification.
i. Financial assets
The Group classifies its financial assets as (i) financial assets at fair value through profit or
loss, (ii) loans and receivables, (iii) held-to-maturity financial assets or (iv) available-for-sale
financial assets. The classification depends on the purpose for which the financial assets are
acquired. Management determines the classification of financial assets at initial recognition.
33
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
i. Financial assets (continued)
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are
recognized on the trade date, i.e., the date that the Group commit to purchase or sell the
assets.
The Group’s financial assets include cash and cash equivalents, other current financial
assets, trade receivables and other receivables and other non-current financial assets.
a. Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets classified as held
for trading. A financial asset is classified as held for trading if it is acquired principally for
the purpose of selling or repurchasing it in the near term and for which there is evidence
of a recent actual pattern of short-term profit taking. Gains or losses arising from changes
in fair value of the trading securities are presented as other (expenses)/income in
consolidated statement of profit or loss and other comprehensive income in the period in
which they arise. Financial asset measured at fair value through profit loss consists of
derivative asset-put option which is recognized as part of “Other Current Financial Assets”
in the consolidated statement of financial position.
b. Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market.
Loans and receivables consist of, among other things, cash and cash equivalents, other
current financial assets, trade and other receivables, and other non-current assets (long-
term trade receivables and restricted cash).
These are initially recognized at fair value including transaction costs and subsequently
measured at amortized cost, using the effective interest method.
c. Held-to-maturity financial assets
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturities on which management has the positive intention and ability
to hold to maturity, other than:
a)
b)
c)
those that the Group, upon initial recognition, designates as at fair value through profit
or loss;
those that the Group designates as available-for-sale; and
those that meet the definition of loans and receivables.
financial assets were classified as held-to-maturity
No
December 31, 2015 and 2014.
financial assets as of
d. Available-for-sale financial assets
Available-for-sale investments are non-derivative financial assets that are intended to be
held for indefinite periods of time, which may be sold in response to needs for liquidity or
changes in interest rates, exchange rates or that are not classified as loans and
receivables, held-to-maturity investments or financial assets at fair value through profit or
loss. Available-for-sale financial assets consist of available-for-sale securities which are
recorded as part of “Other Current Financial Assets” in the consolidated statement of
financial position.
34
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
i. Financial assets (continued)
d. Available-for-sale financial assets (continued)
Available-for-sale securities are stated at fair value. Unrealized holding gain or losses on
available-for-sale securities are excluded from income of the current period and are
reported as a separate component in the equity section of the consolidated statement of
financial position until realized. Realized gain or losses from the sale of available-for-sale
securities are recognized in the consolidated statement of profit or loss and other
comprehensive income, and are determined on the specific identification basis.
ii. Financial liabilities
The Group classifies its financial liabilities as (i) financial liabilities at fair value through profit or
loss or (ii) financial liabilities measured at amortized cost.
The Group’s financial liabilities include trade and other payables, accrued expenses, loans
and other borrowings, and other liabilities. Loans and other borrowings consist of short-term
bank loans, two-step loans, bonds and notes, long-term bank loans and obligations under
finance leases.
a. Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss are financial liabilities classified as
held for trading. A financial liability is classified as held for trading if it is incurred
principally for the purpose of selling or repurchasing it in the near term and for which there
is evidence of a recent actual pattern of short-term profit taking.
No financial liabilities were categorized as held for trading as of December 31, 2015 and
2014.
b. Financial liabilities measured at amortized cost
Financial liabilities that are not classified as liabilities at fair value through profit or loss fall
into this category and are measured at amortized cost. Financial liabilities measured at
amortized cost are trade and other payables, accrued expenses, loans and other
borrowings, and other liabilities. Loans and other borrowings consist of short-term bank
loans, two-step loans, bonds and notes, long-term bank loans and obligations under
finance leases.
iii. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the consolidated
statement of financial position when there is a legally enforceable right to offset the
recognized amounts and there is an intention to settle them on a net basis, or realize the
assets and settle the liabilities simultaneously. The right of set-off must not be contingent on a
future event and must be legally enforceable in all of the following circumstances:
a.
b.
c.
the normal course of business;
the event of default; and
the event of insolvency or bankruptcy of the Group and all of the counterparties.
35
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
iv. Fair value of financial instruments
Fair value is the amount for which an asset could be exchanged, or liability settled, in an arms’
length transaction.
The fair value of financial instruments that are traded in active markets at each reporting date
is determined by reference to quoted market prices, without any deduction for transaction
costs.
For financial instruments not traded in an active market, the fair value is determined using
appropriate valuation techniques. Such techniques may include using recent arm’s length
market transactions, reference to the current fair value of another instrument that is
substantially the same, a discounted cash flow analysis or other valuation models.
An analysis of fair values of financial instruments and further details as to how they are
measured are provided in Note 42.
v.
Impairment of financial assets
The Group assesses the impairment of financial assets if there is objective evidence that a
loss event has a negative impact on the estimated future cash flows of the financial assets.
Impairment is recognized when the loss event can be reliably estimated. Losses expected as
a result of future events, no matter how likely, are not recognized.
For financial assets carried at amortized cost, the Group first assesses whether 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 collectively assesses them 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 the collective assessment of impairment.
The amount of any impairment loss identified is measured as the difference between the
asset’s 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 asset’s original effective interest rate. The
carrying amount of the asset is reduced through the use of an allowance account and the loss
is recognized in profit or loss.
For available-for-sale financial assets, the Group assesses at each reporting date whether
there is objective evidence that an investment or a group of investments is impaired. When a
decline in the fair value of an available-for-sale financial asset has been recognized in other
comprehensive income and there is objective evidence that the asset is impaired, the
cumulative loss that had been recognized in other comprehensive income is recognized in
profit or loss as an impairment loss. The amount of the cumulative loss is the difference
between the acquisition cost (net of any principal repayment and amortization) and current fair
value, less any impairment loss on that financial asset previously recognized.
vi. Derecognition of financial instrument
The Group derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire, or when the Group transfers substantially all the risks and rewards
of ownership of the financial asset.
The Group derecognizes a financial liability when the obligation specified in the contract is
discharged or cancelled or expired.
36
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
v. Treasury stock
Reacquired Company shares of stock are accounted for at their reacquisition cost and classified
as “Treasury Stock” and presented as a deduction to equity. The cost of treasury stock
sold/transferred is accounted for using the weighted average method. The portion of treasury
stock transferred for employees ownership program is accounted for at its fair value at grand date.
The difference between the cost and the proceeds from the sale/transfer value of treasury stock is
credited to “Additional Paid-in Capital”.
w. Dividends
Dividend for distribution to the stockholders is recognized as a liability in the consolidated financial
statements in the year in which the dividend is approved by the stockholders. The interim dividend
as a liability based on the Board of Directors’ decision supported by the approval from the Board
of Commissioners.
x. Basic earnings per share and earnings per ADS
Basic earnings per share is computed by dividing profit for the year attributable to owners of the
parent company by the weighted average number of shares outstanding during the year. Income
per ADS is computed by multiplying basic earnings per share by 200, the number of shares
represented by each ADS.
The Company does not have potentially dilutive financial investments.
y. Segment information
The Group's segment information is presented based upon identified operating segments. An
operating segment is a component of an entity: a) that engages in business activities from which it
may earn revenues and incur expenses (including revenues and expenses relating to transactions
with other components of the same entity); b) whose operating results are regularly reviewed by
the Group's chief operating decision maker i.e., the Directors, to make decisions about resources
to be allocated to the segment and assess its performance, and c) for which discrete financial
information is available.
z. Provision
Provisions are recognized when the Group has present obligations (legal or constructive) arising
from past events and it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligations and the amount can be measured reliably.
Provisions for onerous contracts are recognized when the contract becomes onerous for the lower
of the cost of fulfilling the contract and any compensation or penalties arising from failure to fulfill
the contract.
aa. Impairment of non-financial assets
The Group assesses, at the end of each reporting period, whether there is an indication that an
asset may be impaired. If such indication exists, the recoverable amount is estimated for the
individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the
Group determines the recoverable amount of the Cash-Generating Unit (“CGU”) to which the
asset belongs (“the asset’s CGU”).
The recoverable amount of an asset (either individual asset or CGU) is the higher of the asset’s
fair value less costs to sell and its value in use (“VIU”). Where the carrying amount of the asset
exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount. 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.
37
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
aa. Impairment of non-financial assets (continued)
In determining fair value less costs to sell, recent market transactions are taken into account, if
available. If no such transactions can be identified, the Group uses an appropriate valuation model
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 are recognized in profit or loss under “Depreciation
and Amortization” in the consolidated statements of profit or loss and other comprehensive
income.
An assessment is made at the end of each reporting period as to whether there is any indication
that previously recognized impairment losses 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 asset’s recoverable amount since
the last impairment loss was recognized. The reversal is limited such 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 been recognized for the asset in
prior periods. Reversal of an impairment loss is recognized in profit or loss.
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. When the recoverable
amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment
loss relating to goodwill cannot be reversed in future periods.
ab. Changes in accounting policies and disclosures
Implementation of Offsetting Financial Assets and Financial Liabilities (PSAK 50)
The Group applied Offsetting Financial Assets and Financial Liabilities based on PSAK
50,(revised 2014) retrospectively in the current period in accordance with the transitional
provisions set out in the amendments. The comparative balances are accordingly restated.
PSAK 50 (revised 2014), clarifies, among others things, that the right to set off must not only be
legally enforceable in the normal course of business, but must also be enforceable in the events of
default, bankruptcy or insolvency of all of the counterparties to contracts, including the Group
itself.
The Group re-assessed its contracts that include terms on an enforceable right to set off in the
normal course of business and the prevailing laws and regulations, and concluded that the right to
set off would not be exercisable in the event of default, insolvency or bankruptcy. Accordingly, the
set-off criterion is not met and the financial asset and liability should not be offset, thus the gross
amount is presented in the consolidated statement of financial position.
38
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ab. Changes in accounting policies and disclosures (continued)
Implementation of Offsetting Financial Assets and Financial Liabilities (PSAK 50) (continued)
As a result of the amendments, the comparative figures in the consolidated statements of financial
position have been restated as follows:
Before
restatement
Restatement
After
restatement
Consolidated statement of financial position
as of January 1, 2014
Trade receivables - net of provision
for impairment of receivables
Related parties
Third parties
Trade payables
Related parties
Third parties
Consolidated statement of financial position
as of December 31, 2014
Trade receivables - net of provision
for impairment of receivables
Related parties
Third parties
Trade payables
Related parties
Third parties
900
5,126
826
10,774
746
5,719
770
11,060
203
394
203
394
127
405
127
405
1,103
5,520
1,029
11,168
873
6,124
897
11,465
The implementation of PSAK 50 (2014), have no impact on the consolidated statement of profit or
loss and other comprehensive income, consolidated statement of changes in equity and
consolidated statement of cash flows.
Implementation of PSAK 24, Employee Benefits (Revised 2013)
The Group also applied PSAK 24 (Revised 2013) retrospectively in the current period in
accordance with the transition requirements of the revised standard. As a result of changes, the
comparative figures in the consolidated financial statements have been restated as follows:
Before
restatement
Restatement
After
restatement
Consolidated statement of financial position
as of January 1, 2014
Prepaid pension benefit costs
Deferred tax assets - net
Deferred tax liabilities - net
Post-retirement health care benefit
costs provisions
Pension and other post-employment benefits
927
82
3,004
752
2,795
22
(15)
(128)
241
597
949
67
2,876
993
3,392
39
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ab. Changes in accounting policies and disclosures (continued)
Implementation of PSAK 24, Employee Benefits (Revised 2013) (continued)
Before
restatement
Restatement
After
restatement
Consolidated statement of financial position
as of January 1, 2014 (continued)
Retained earnings
Unappropriated
Net equity attributable to:
Owners of the parent company
Non-controlling interests
Consolidated statement of financial position
as of December 31, 2014
Prepaid pension benefit costs
Deferred tax assets - net
Deferred tax liabilities - net
Post-retirement health care benefit
costs provisions
Pension and other post-employment benefits
Retained earnings
Unappropriated
Net equity attributable to:
Owners of the parent company
Non-controlling interests
Consolidated statement of profit or loss and
other comprehensive income
for the year ended December 31, 2014
Personnel expenses
Operating profit
Profit before income tax
Income tax (expense) benefit - deferred
Profit for the year
Actuarial gain – net
Other comprehensive income - net
Total comprehensive income for the year
Profit for the year attributable to
Owners of parent company
Non-controlling interest
Other comprehensive income for the year
attributable to:
Owners of parent company
Non-controlling interest
43,291
60,542
16,882
771
99
2,743
602
3,092
47,986
67,807
18,318
(9,616)
29,377
28,784
278
21,446
-
25
21,471
14,638
6,808
14,663
6,808
(719)
(719)
16
399
(4)
(89)
(161)
778
(86)
(86)
(47)
(171)
(171)
(171)
(1)
(172)
742
742
570
(167)
(5)
633
(63)
42,572
59,823
16,898
1,170
95
2,654
441
3,870
47,900
67,721
18,271
(9,787)
29,206
28,613
277
21,274
742
767
22,041
14,471
6,803
15,296
6,745
Basic and diluted earnings per share (in full amount)
Net income per share
Net income per ADS
149.83
29,966.70
(1.70)
(341.54)
148.13
29,625.16
PSAK 24 (Revised 2013) also requires more extensive disclosures. These have been provided in
Notes 33 and 35.
The implementation of PSAK 24,Employee Benefits (Revised 2013), have no impact on the
consolidated statements of cash flows.
40
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ab. Changes in accounting policies and disclosures (continued)
The impact of the implementation of those revised standards, comparative balance in the
consolidated financial statements presented as follows:
Before
restatement
Restatement
After
restatement
Consolidated statement of financial position
as of January 1, 2014
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Total liabilities
Total equity
Total liabilities and equity
Consolidated statement of financial position
as of December 31, 2014
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Total liabilities
Total equity
Total liabilities and equity
33,075
94,876
127,951
28,437
22,090
50,527
77,424
127,951
33,762
107,133
140,895
31,786
22,984
54,770
86,125
140,895
597
7
604
597
710
1,307
(703)
604
532
395
927
532
528
1,060
(133)
927
33,672
94,883
128,555
29,034
22,800
51,834
76,721
128,555
34,294
107,528
141,822
32,318
23,512
55,830
85,992
141,822
Other new and amended standards
Group has also implemented several new standards and revisions in 2015. The adoption of these
standards had no significant impact on the consolidated financial statements.
ac.
Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
The Group make estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are addressed below.
41
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ac. Critical accounting estimates and judgements (continued)
i. Retirement benefits
The present value of the retirement benefit obligations depends on a number of factors that
are determined on an actuarial basis using a number of assumptions. The assumptions used
in determining the net cost (income) for pensions include the discount rate. Any changes in
these assumptions will impact the carrying amount of retirement benefit obligations.
The Group determines the appropriate discount rate at the end of each reporting period. This
is the interest rate that should be used to determine the present value of estimated future cash
outflows expected to be required to settle the obligations. In determining the appropriate
discount rate, the Group considers the interest rates of Government bonds that are
denominated in the currency in which the benefits will be paid and that have terms to maturity
approximating the terms of the related retirement benefit obligations.
If there is an improvement in the ratings of such Government bonds or a decrease in interest
rates as a result of improving economic conditions, there could be a material impact on the
discount rate used in determining the post-employment benefits obligations.
Other key assumptions for retirement benefit obligations are based in part on current market
conditions. Additional information is disclosed in Notes 33, 34 and 35.
ii. Useful lives of property and equipment
The Group estimate the useful lives of their property and equipment based on expected asset
utilization, considering strategic business plans, expected future technological developments
and market behavior. The estimates of useful lives of property and equipment are based on
the Group’s collective assessment of industry practice, internal technical evaluation and
experience with similar assets.
The Group review estimates of useful lives at least each financial year end and such
estimates 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. The amounts of recorded expenses for any year will be affected by changes in these
factors and circumstances. A change in the estimated useful lives of the property and
equipment is a change in accounting estimates and is applied prospectively in profit or loss in
the period of the change and future periods.
Details of the nature and carrying amount of property and equipment are disclosed in Note 10.
iii. Provision for impairment of receivables
The Group assesses whether there is objective evidence that trade receivables have been
impaired at the end of each reporting period. Provision for impairment of receivables is
calculated based on a review of the current status of existing receivables and historical
collection experience. Such provisions are adjusted periodically to reflect the actual and
anticipated experience. Details of the nature and carrying amount of provision for impairment
of receivables are disclosed in Note 6.
iv. Income taxes
Significant judgement is required in determining the provision for income taxes. There are
many transactions and calculations for which the ultimate tax determination is uncertain. The
Group recognizes liabilities for anticipated tax audit issues based on estimates of whether
additional taxes will be due. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the current and deferred
income tax assets and liabilities in the year in which such determination is made. Details of
the nature and carrying amount of income tax are disclosed in Note 30.
42
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3. BUSINESS COMBINATIONS
Acquisition of Contact Centers Australia Pty. Ltd. (“CCA”)
On June 14, 2014, the shareholders of CCA and Telkom Australia entered into an agreement to
purchase 75% ownership in CCA amounting for AU$10,843,000 or equivalent to Rp116 billion. The
acquisition was completed on September 25, 2014.
CCA is a private company based in Surry Hills, Sydney and was established in 2002. This company
provides comprehensive and integrated Business Process Outsourcing solutions with other services
for a complete end-to-end solution.
The fair values of the assets acquired and liabilities assumed at the acquisition date were as follows:
Cash and cash equivalents
Trade receivables
Other current assets
Property and equipment
Intangible assets
Lease
Current liabilities
Non-current liabilities
Fair value of identifiable net asset acquired
Fair value of non-controlling interest
Goodwill
Fair value of consideration transferred
Total
6
20
17
6
78
4
(29 )
(2 )
100
(38 )
54
116
The CCA’s shareholders agreement stated that there is an option for the non-controlling interest to
offer their shares ownership to Telkom Australia in 2019. The Company has made a calculation and
assessment on the impact of this option to the consolidated financial statements and concluded that
the fair value of the option is nil.
The exchange rate prevailing at the time of acquisition was Rp10,655/AU$.
Since the acquisition date up to period ended December 31, 2014, the Group of CCA generated
revenue amounting to Rp72 billion.
Total net cash flow to acquire control, net of cash acquired is amounted to Rp110 billion.
The business combination transaction mentioned above have complied to the related Bapepam-LK
Regulations.
43
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
4. CASH AND CASH EQUIVALENTS
The breakdown of cash and cash equivalents is as follows:
2015
Balance
2014
Balance
Currency
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
Cash on hand
Cash in banks
Related parties
PT Bank Mandiri
(Persero) Tbk (“Bank Mandiri”)
PT Bank Negara Indonesia
(Persero) Tbk (“BNI”)
PT Bank Rakyat Indonesia
(Persero) Tbk (“BRI”)
Others
Sub-total
Third parties
Standard Chartered Bank (“SCB”)
PT Bank Muamalat
Indonesia Tbk (“Bank Muamalat”)
The Hongkong and Shanghai Banking
Corporation Ltd. (“HSBC”)
Citibank, N.A. (“Citibank”)
Others (each below Rp75 billion)
Sub-total
Total cash in banks
Time deposits
Related parties
BRI
BNI
Bank Mandiri
PT Bank Tabungan Negara
(Persero) Tbk (“Bank BTN”)
Others
Sub-total
Rp
Rp
US$
JPY
EUR
HKD
AUD
Rp
US$
EUR
SGD
Rp
US$
Rp
US$
Rp
US$
SGD
Rp
US$
US$
HKD
SGD
Rp
US$
EUR
Rp
US$
EUR
AUD
TWD
MYR
HKD
MOP
Rp
US$
Rp
US$
Rp
US$
Rp
Rp
-
-
51
11
1
1
0
-
22
5
0
-
11
-
0
-
31
1
-
27
8
10
1
-
2
0
-
1
0
1
19
0
0
0
-
201
-
1
-
5
-
-
44
10
672
707
1
8
1
0
508
299
72
0
140
155
14
0
2,577
0
430
13
61
373
110
18
6
103
26
4
98
15
0
13
8
0
0
0
1,278
3,855
2,831
2,763
3,031
9
2,863
69
885
-
12,451
-
-
18
8
0
2
-
-
19
7
0
-
8
-
0
-
30
3
-
-
7
4
0
-
0
1
-
4
1
0
21
0
0
0
-
138
-
1
-
20
-
-
24
611
226
1
0
3
-
384
233
99
0
213
104
15
0
1,889
0
368
30
16
-
88
6
1
0
2
15
171
46
15
1
8
0
0
0
767
2,656
4,443
1,713
1,285
8
852
248
25
1
8,575
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
4. CASH AND CASH EQUIVALENTS (continued)
2015
Balance
2014
Balance
Currency
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
Time deposits (continued)
Third parties
PT Bank Mega Tbk (“Bank Mega”)
PT Bank Pembangunan Daerah
Jawa Barat dan Banten (“BJB”)
PT Bank Bukopin Tbk
(“Bank Bukopin”)
PT Bank Permata Tbk
(“Bank Permata”)
PT Bank CIMB Niaga Tbk
(“Bank CIMB Niaga”)
PT Bank OCBC NISP Tbk
(“OCBC NISP”)
SCB
PT Bank UOB Indonesia (“UOB”)
PT Bank Tabungan Pensiunan
Nasional Tbk (“BTPN”)
Bank Muamalat
PT Bank Panin Tbk
(“Bank Panin”)
PT Bank Ekonomi Raharja Tbk
(“Bank Ekonomi”)
Others (each below Rp75 billion)
Sub-total
Total time deposits
Grand Total
Rp
US$
Rp
US$
Rp
US$
Rp
US$
Rp
Rp
US$
Rp
Rp
Rp
Rp
Rp
Rp
Rp
-
70
-
10
-
55
-
-
-
-
-
-
-
-
-
-
-
-
1,265
960
1,884
138
1,173
759
1,692
-
1,605
950
-
550
300
146
142
91
-
146
11,801
24,252
28,117
-
26
-
-
-
-
-
58
-
-
36
-
-
-
-
-
-
-
1,057
323
54
-
49
-
1,350
720
2,057
-
448
-
100
1
66
28
75
89
6,417
14,992
17,672
Interest rates per annum on time deposits are as follows:
Rupiah
Foreign currencies
2015
2014
3.75%-10.50%
0.10%-3.00%
4.00%-11.50%
0.03%-3.00%
The related parties in which the Group places its funds are state-owned banks. The Group placed the
majority of its cash and cash equivalents in these banks because they have the most extensive branch
networks in Indonesia and are considered to be financially sound banks, as they are owned by the
State.
Refer to Note 36 for details of related party transactions.
45
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
5. OTHER CURRENT FINANCIAL ASSETS
The breakdown of other current financial assets is as follows:
2015
Balance
2014
Balance
Currency
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
Time deposits
Related parties
Bank Mandiri
Third parties
SCB
Total time deposits
Available-for-sale financial assets
Related parties
State-owned enterprises
Government
Sub-total
Third parties
Total available-for-sale financial assets
Escrow accounts
Others
Total
US$
US$
US$
Rp
US$
Rp
Rp
US$
Rp
US$
AUD
20
1
4
-
2
-
-
3
-
0
1
278
11
289
59
-
29
88
72
160
2,121
41
192
1
14
2,818
8
1
4
-
2
-
-
-
-
0
-
100
10
110
55
103
27
185
69
254
2,121
-
311
1
-
2,797
The majority of escrow accounts represent Telkomsel’s account in BNI, in relation to the Conditional
Business Transfer Agreement between Telkomsel and the Company (Note 39c.ii).
The time deposits have maturities of more than three months but not more than one year, with interest
rates as follows:
Foreign currencies
Refer to Note 36 for details of related party transactions.
2015
2014
0.85%-0.88%
0.85%-1.00%
46
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
6. TRADE RECEIVABLES
Trade receivables arise from services provided to both retail and non-retail customers, with details as
follows:
a. By debtor
(i) Related parties
PT Indosat Tbk (“Indosat”)
Indonusa
State-owned enterprises
Others
Total
Provision for impairment of receivables
Net
(ii) Third parties
Individual and business subscribers
Overseas international carriers
Total
Provision for impairment of receivables
Net
b. By age
(i) Related parties
Up to 6 months
7 to 12 months
More than 12 months
Total
Provision for impairment of receivables
Net
47
2015
(As restated)
2014
361
342
270
378
1,351
(247)
1,104
195
290
458
332
1,275
(402)
873
2015
(As restated)
2014
8,020
1,194
9,214
(2,801)
6,413
8,033
785
8,818
(2,694)
6,124
2015
(As restated)
2014
833
67
451
1,351
(247)
1,104
712
125
438
1,275
(402)
873
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
6. TRADE RECEIVABLES (continued)
b. By age (continued)
(ii) Third parties
Up to 3 months
More than 3 months
Total
Provision for impairment of receivables
Net
(iii) Aging of total trade receivables
2015
(As restated)
2014
5,816
3,398
9,214
(2,801)
6,413
5,287
3,531
8,818
(2,694)
6,124
2015
2014
(As restated)
Provision for
impairment
of receivables
Gross
Gross
Provision for
impairment
of receivables
4,353
2,235
583
3,394
10,565
266
202
216
2,364
3,048
3,595
2,294
645
3,559
10,093
127
262
321
2,386
3,096
Not past due
Past due up to 3 months
Past due more than 3 to 6 months
Past due more than 6 months
Total
The Group has made provision for impairment of trade receivables based on the collective
assessment of historical impairment rates and individual assessment of its customers’ credit
history. The Group does not apply a distinction between related party and third party
receivables in assessing amounts past due. As of December 31, 2015 and 2014, the carrying
amount of trade receivables of the Group considered past due but not impaired amounted to
Rp3,430 billion and Rp3,529 billion, respectively. Management believes that receivables past
due but not impaired, along with trade receivables that are neither past due nor impaired, are
due from customers with good credit history and are expected to be recoverable.
c. By currency
(i) Related parties
Rupiah
U.S. dollar
Total
Provision for impairment of receivables
Net
48
2015
(As restated)
2014
1,328
23
1,351
(247)
1,104
1,249
26
1,275
(402)
873
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
6. TRADE RECEIVABLES (continued)
c. By currency (continued)
(ii) Third parties
Rupiah
U.S. dollar
Australian dollar
Others
Total
Provision for impairment of receivables
2015
(As restated)
2014
7,761
1,436
14
3
9,214
(2,801)
7,730
1,053
31
4
8,818
(2,694)
Net
6,413
6,124
d. Movements in the provision for impairment of receivables
Beginning balance
Provision recognized during the year (Note 28)
Receivables written off
Ending balance
2015
2014
3,096
1,010
(1,058)
2,872
784
(560)
3,048
3,096
The receivables written off relate to both related-party and third-party trade receivables.
Management believes that the provision for impairment of trade receivables is adequate to cover
losses on uncollectible trade receivables.
As of December 31, 2015, certain trade receivables of the subsidiaries amounting to Rp4,290
billion have been pledged as collateral under lending agreements (Notes 16, 19 and 20).
Refer to Note 36 for details of related party transactions.
49
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
7.
INVENTORIES
Components
SIM cards, set top boxes, and
blank prepaid vouchers
Others
Total
Provision for obsolescence
Components
SIM cards, set top boxes and blank prepaid vouchers
Others
Total
Net
Movements in the provision for obsolescence are as follows:
Beginning balance
Provision recognized during the year
Inventory write off
Ending balance
2015
2014
342
131
96
569
(14)
(27)
0
(41)
528
2015
2014
43
2
(4)
41
279
105
133
517
(15)
(28)
0
(43)
474
22
39
(18)
43
inventories
The
telecommunication service expenses as of December 31, 2015 and 2014 amounted
Rp1,937 billion and Rp1,031 billion, respectively (Note 27).
in operations, maintenance, and
to
recognized as expense and
included
Management believes that the provision is adequate to cover losses from declines in inventory value
due to obsolescence.
Certain inventories of the Company’s subsidiaries amounting to Rp268 billion have been pledged as
collateral under lending agreements (Notes 16 and 20).
As of December 31, 2015 and 2014, modules and components held by the Group with book value
amounting to Rp219 billion and Rp237 billion, respectively, has been insured against fire, theft, and
other specific risks. Modules are recorded as part of property and equipment. Total sum insured as of
December 31, 2015 and 2014 amounted to Rp291 billion and Rp 266 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of inventories
arising from the insured risks.
50
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
8. ADVANCES AND PREPAID EXPENSES
Frequency license (Notes 39c.i and 39c.ii)
Prepaid rental
Advances
Salaries
Others (each below Rp75 billion)
Total
Refer to Note 36 for details of related party transactions.
9. LONG-TERM INVESTMENTS
2015
2014
2,935
1,055
729
347
773
5,839
2,699
983
410
218
423
4,733
2015
Share of
net (loss)
profit of
Percentage
of
Beginning Additions associated
ownership balance (Deductions) com pany
Dividend
Share of other
comprehensive
income of
associated Ending
balance
com pany
Long-term
investments
in associated
companies:
Tiphonea
Indonusab
Teltranetc
PT Melon Indonesia
(“Melon”) d
PT Integrasi Logistik Cipta
Solusi (“ILCS”) e
Telin Malaysiaf
CSMg
Sub-total
Other long-term investments
Total long-term investments
24.65
20.00
51.00
51.00
49.00
49.00
25.00
1,392
221
52
43
38
6
-
1,752
15
1,767
-
-
43
-
-
19
-
62
-
62
32
-
(24)
7
2
(19)
-
(2)
-
(2)
(18)
-
-
-
-
-
-
(18)
-
(18)
(2)
-
-
-
-
(0)
-
(2)
-
(2)
1,404
221
71
50
40
6
-
1,792
15
1,807
51
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. LONG-TERM INVESTMENTS (continued)
Summarized financial information of the Group’s investments accounted under the equity method for
2015:
Tiphone Indonusa
Teltranet
Melon
ILCS
Malaysia
CSM
Telin
Statements of financial position
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Equity (deficit)
Statements of profit or loss and
other comprehensive income
Revenues
Operating expenses
Other income (expenses)
including finance costs - net
Profit (loss) before tax
Income tax expense
6,539
1,261
(1,657)
(3,073)
501
333
(535)
(568)
3,070
(269)
22,060
(21,295)
599
(559)
(265)
500
(130)
(82)
(42)
-
Profit (loss) for the year
370
(42)
117
58
(35)
(1)
139
0
(72 )
9
(63 )
16
(47)
131
27
(57)
(2)
99
105
32
(54)
(1)
82
201
(184)
111
(108)
2
19
(5)
14
0
(0)
3
(0)
3
0
3
18
10
(17)
-
11
6
(40)
(3)
(37)
-
(37)
185
1,221
(731 )
(1,535 )
(860 )
164
(364 )
(74 )
(274 )
-
(274 )
-
-
(37)
(274 )
Other comprehensive income
(loss)
Total comprehensive income
for the year
Long-term
investments
in associated
companies:
Tiphonea
Indonusab
Teltranetc
Melond
ILCSe
Telin Malaysiaf
CSMg
Sub-total
Other long-term investments
(7)
-
-
363
(42)
(47 )
14
2014
Percentage
of
ownership
Beginning
balance
Additions
(Deductions)
Share of
net (loss)
profit of
associated
com pany
Share of other
com prehensive
income of
associated
company
Ending
balance
24.92
20.00
51.00
51.00
49.00
49.00
25.00
-
189
-
39
37
18
-
283
21
1,395
32
52
-
-
8
-
1,487
(6)
(3 )
-
(0 )
4
1
(19 )
-
(17 )
-
-
-
-
-
-
(1)
-
(1)
-
1,392
221
52
43
38
6
-
1,752
15
Total long-term investments
304
1,481
(17)
(1)
1,767
52
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. LONG-TERM INVESTMENTS (continued)
Summarized financial information of the Group’s investments accounted under the equity method for
2014:
Tiphone Indonusa
Teltranet
Melon
ILCS
Malaysia
CSM
Telin
Statements of financial
position
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Equity (deficit)
Statements of profit or loss
and other comprehensive
income
Revenues
Operating expenses
Other income (expenses)
including finance costs – net
Profit (loss) before tax
Income tax expense
Profit (loss) for the year
305
4,469
1,259
(2,465)
(275)
396
365
(382)
(605)
2,988
(226)
14,590
(14,082)
387
(426)
(96)
412
(107)
(35)
(74)
-
(74)
104
0
0
-
104
-
(1 )
1
(0 )
-
(0 )
101
36
(51)
(2)
84
86
24
(31)
(2)
77
8
4
(1)
-
11
157
933
(1,297 )
(317 )
(524 )
134
(129)
99
8
(97) (49)
3
8
0
8
0
2
-
2
(0)
(41)
-
(41)
173
(382 )
13
(196 )
-
(196 )
a Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the
telecommunication equipment business, such as for celullar phone including spare parts, accessories, pulse reload vouchers,
repair service and content provider through its subsidiaries. On September 18, 2014, the Company through PINS acquired
25% ownership in Tiphone for Rp1,395 billion.
As of December 31, 2015 and 2014, the fair value of investment amounting to Rp1,351 billion and Rp1,632 billion,
respectively. The fair value was calculated by multiplying number of shares by the published price quotation as of December
31, 2015 and 2014 amounting to Rp770 and Rp930 per share, respectively.
Reconciliation of
financial
information
to
the carrying amount of
long-term
investment
in Tiphone as of
December 31, 2015 and 2014 are as follows:
2015
2014
Assets
Liabilities
Net assets
Group’s proportionate share of net assets
(24.65% in 2015 and 24.92% in 2014)
Goodwill
Carrying amount of long-term investment
7,800
(4,730)
3,070
757
647
1,404
5,728
(2,740)
2,988
745
647
1,392
c
b Indonusa had been a subsidiary of the Company until 2013 when the Company disposed 80% of its interest in Indonusa.
On May 14, 2014, based on the Circular Resolution of the Stockholders of Indonusa as covered by notarial deed No. 57
dated April 23, 2014 of FX Budi Santoso
its Letter
No. AHU-02078.40.20.2014 dated April 29, 2014, Indonusa’s stockholders approved an increase in its issued and fully paid
capital by Rp80 billion. The Company has waived its right to own the new shares issued and transferred it to Metra and, as a
result, Metra’s ownership in Indonusa increased to 4.33%.
Investment in Teltranet is accounted for under the equity method, which covered on an agreem ent between Metra and
Telstra Holding Singapore Pte. Ltd. on August 29, 2014. Teltranet is engaged in communication system services. Metra does
not have control as it does not determine the financial and operating policies of Teltranet.
Isbandi, S.H., which was approved by
the MoLHR
d Melon is engaged in providing Digital Content Exchange Hub services (“DCEH”). Metra does not have control over Melon due
to the existence of substantive participating rights held by the other venturer over the financial and operating policies of
Melon.
ILCS is engaged in providing E-trade logistic services and other related services.
e
f Telin Malaysia is engaged in telecommunication services in Malaysia.
in
53
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. LONG-TERM INVESTMENTS (continued)
g CSM is engaged in providing Very Small Aperture Terminal (“VSAT”), network application services and consulting services
on telecommunications technology and related facilities. The unrecognized share of losses of CSM for the years ended
December 31, 2015 and 2014 amounting to Rp215 billion and Rp131 billion, respectively.
10. PROPERTY AND EQUIPMENT
At cost:
Directly acquired assets
Land rights
Buildings
Leasehold improvements
Switching equipment
Telegraph, telex and data communication
equipment
Transmission installation and equipment
Satellite, earth station and equipment
Cable network
Power supply
Data processing equipment
Other telecommunications peripherals
Office equipment
Vehicles
Other equipment
Property under construction
Assets under finance lease
Transmission installation and equipment
Data processing equipment
Office equipment
Vehicles
CPE assets
Power supply
RSA assets
January 1,
2015
Additions
Deductions
Reclassifications/
Translations
December 31,
2015
1,184
4,571
943
19,208
6
107,573
7,927
33,114
12,776
10,242
602
951
346
99
3,853
5,882
102
21
44
22
-
252
86
263
41
126
870
4,278
93
4,458
381
408
37
150
135
-
14,623
260
-
52
50
-
90
-
-
-
(151 )
(66 )
-
(2,318)
(1)
(227)
(92)
(58)
-
(46)
(2)
-
-
(202)
(39)
-
-
-
-
-
-
1,199
203
555
-
9,514
127
542
757
759
(7 )
7
(4 )
-
(13,896)
-
-
-
-
-
-
-
1,270
6,033
1,036
19,823
876
119,047
8,146
37,887
13,822
11,351
632
1,062
475
99
4,580
5,940
63
73
94
22
90
252
Total
209,718
26,401
(3,202 )
(244)
232,673
January 1,
2015
Additions
Deductions
Reclassifications/
Translations
December 31,
2015
Accumulated depreciation and impairment
losses:
Directly acquired assets
Buildings
Leasehold improvements
Switching equipment
Telegraph, telex and data communication
equipment
Transmission installation and equipment
Satellite, earth station and equipment
Cable network
Power supply
Data processing equipment
Other telecommunications peripherals
Office equipment
Vehicles
Other equipment
Assets under finance lease
Transmission installation and equipment
Data processing equipment
Office equipment
Vehicles
CPE assets
Power supply
RSA assets
Total
Net Book Value
1,954
669
13,861
4
54,764
6,099
18,762
7,978
7,624
322
659
113
97
1,681
79
6
5
15
-
217
183
105
1,441
-
10,575
607
1,327
1,250
940
70
107
57
2
848
13
45
8
2
18
13
-
(151 )
(62 )
-
(2,290 )
(1 )
(225 )
(85 )
(58 )
-
(45 )
(1 )
-
(202 )
(39 )
-
-
-
-
-
4
-
(17 )
-
14
1
(340)
(29)
(3)
(7 )
(8)
(3 )
-
-
-
-
-
-
-
-
2,141
623
15,223
4
63,063
6,706
19,524
9,114
8,503
385
713
166
99
2,327
53
51
13
17
18
230
114,909
17,611
(3,159 )
(388)
128,973
94,809
103,700
54
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
At cost:
Directly acquired assets
Land rights
Buildings
Leasehold improvements
Switching equipment
Telegraph, telex and data communication
equipment
Transmission installation and equipment
Satellite, earth station and equipment
Cable network
Power supply
Data processing equipment
Other telecommunications peripherals
Office equipment
Vehicles
Other equipment
Property under construction
Assets under finance lease
Transmission installation and equipment
Data processing equipment
Office equipment
Vehicles
CPE assets
RSA assets
Total
Accumulated depreciation and impairment
losses:
Directly acquired assets
Buildings
Leasehold improvements
Switching equipment
Telegraph, telex and data communication
equipment
Transmission installation and equipment
Satellite, earth station and equipment
Cable network
Power supply
Data processing equipment
Other telecommunications peripherals
Office equipment
Vehicles
Other equipment
Assets under finance lease
Transmission installation and equipment
Data processing equipment
Office equipment
Vehicles
CPE assets
RSA assets
Total
Net Book Value
January 1,
2014
Business
acquisition
Additions
Deductions
Translations
2014
Reclassifications/ December 31,
1,098
4,224
812
18,705
6
95,853
7,456
28,987
11,755
9,230
500
770
332
104
1,971
5,683
123
7
26
22
459
188,123
-
-
-
-
-
-
-
-
-
-
-
4
2
-
-
-
-
-
-
-
-
6
107
131
49
331
-
2,298
312
3,025
225
684
102
191
18
-
16,660
495
-
15
18
-
-
(21)
(19)
(52)
(496)
-
(1,235)
(21)
(250)
(78)
(53)
-
(5)
(6)
-
(15)
(296)
(21)
(1)
-
-
-
-
235
134
668
-
10,657
180
1,352
874
381
(0)
(9)
(0)
(5)
(14,763)
-
-
-
0
-
(207)
1,184
4,571
943
19,208
6
107,573
7,927
33,114
12,776
10,242
602
951
346
99
3,853
5,882
102
21
44
22
252
24,661
(2,569)
(503)
209,718
January 1,
Reclassifications/ December 31,
2014
Additions
Impairments
Deductions
Translations
2014
135
71
1,549
1
9,084
577
1,101
1,246
869
55
109
46
2
632
17
3
4
2
130
1,840
649
12,903
3
46,666
5,190
17,758
6,794
6,822
267
564
68
100
1,345
83
2
1
13
294
101,362
86,761
-
-
-
(16)
(52)
(496)
(5)
1
1,954
669
(95) 13,861
-
406
332
67
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,161)
-
(249)
(62)
(57)
-
(5)
(2)
-
(296)
(21)
(1)
-
-
-
-
(231)
(0)
85
(0)
(10)
0
(9)
1
(5)
-
-
2
-
-
(207)
(473)
4
54,764
6,099
18,762
7,978
7,624
322
659
113
97
1,681
79
6
5
15
217
114,909
94,809
15,633
805
(2,418)
55
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
a. Gain on disposal or sale of property and equipment
Proceeds from sale of property and equipment
Net book value
Gain on disposal or sale of property and equipment
b. Asset impairment
2015
2014
733
(8)
725
501
(64)
437
As of December 31, 2015 and 2014, the CGUs that independently generate cash inflows were
fixed wireline, fixed wireless, cellular and others.
In 2014, the Group decided to cease its fixed wireless business no later than December 15, 2015.
The Company assessed the recoverable amount to be Rp549 billion and determined that the
assets for fixed wireless CGU were further impaired by Rp805 billion. The recoverable amount has
been determined based on VIU calculation using the most recent cash flows projection approved
by management. The cash flows projection included cash inflows from the continuing use of the
assets during the remaining service period and projected net cash flows to be received for the
disposal of the assets for fixed wireless CGU at the end of service period. Projected net cash
flows to be received for the disposal of the assets was determined based on cost approach,
adjusted for physical, technological and economic obsolescence. Management applied a pre-tax
discount rate of 13.5% derived from the Company’s post-tax weighted average cost of capital and
benchmarked to externally available data. In addition, management also applied technological and
economic obsolescence rate of 30% based on the Company’s internal data, due to the lack of
comparable market data because of the nature of the assets. The determination of VIU calculation
is most sensitive to technological and economic obsolescence rate assumption. An increase in
technological and economic obsolescence rate to 40% would result in a further impairment of
Rp70 billion.
Loss on impairment of assets was recognized within “Depreciation and Amortization” in the
consolidated statement of profit or loss and other comprehensive income.
In connection with the restructuring of fixed wireless business (Note 39c.ii), the Company
accelerated its depreciation of fixed wireless assets. As of December 31, 2015, all of the
Company’s fixed wireless assets have been fully depreciated.
Management believes that there is no indication of impairment in the assets of other CGUs as of
December 31, 2015.
56
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
c. Others
(i)
to property under construction amounted
Interest capitalized
to Rp328 billion and
Rp127 billion for the years ended December 31, 2015 and 2014, respectively. The
capitalization rate used to determine the amount of borrowing costs eligible for capitalization
ranges from 6.84% to 11.00% and from 10.14% to 18.31% for the years ended December
31, 2015 and 2014, respectively.
(ii) No foreign exchange loss was capitalized as part of property under construction for the years
ended December 31, 2015 and 2014.
(iii) In 2015 and 2014, the Group received proceeds from the insurance claim on the lost and
broken property and equipment, with a total value of Rp119 billion and Rp212 billion,
respectively and recorded as part of “Other Income” in the consolidated statement of profit or
loss and other comprehensive income. In 2015 and 2014, the net carrying value of those
assets of Rp35 billion and Rp50 billion, respectively, were charged to the consolidated
statement of profit or loss and other comprehensive income.
(iv) In 2012, Telkomsel decided to replace certain equipment units with net carrying amount of
Rp1,037 billion, as part of its modernization program. Accordingly, Telkomsel changed the
estimated useful lives of such equipment. The effect of the change is an additional
depreciation expense amounting to Rp84 billion for 2014.
(v)
In 2012, the useful lives of Telkomsel’s towers were changed from 10 years to 20 years to
reflect their current economic useful lives. The impact is a reduction of depreciation expense
by Rp469 billion and Rp565 billion, for the years ended December 31, 2015 and 2014,
respectively.
The impact of the change in the estimated useful lives of the towers in future periods is an
increase in the profit before income tax as follows:
Years
2016
2017
Amount
301
92
In 2014, the useful lives of Telkomsel’s buildings and transmissions were changed from
20 years to 40 years, and from 10 years to 15 and 20 years, respectively, to reflect their
current economic useful lives. The impact is a reduction of depreciation expense by Rp264
billion for the year ended December 31, 2015.
The impact of the change in the estimated useful lives of the buildings and transmissions in
future periods is an increase in the profit before income tax as follows:
Years
2016
2017
2018
Amount
244
198
135
57
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
In 2015, Telkomsel decided to replace certain equipment units with net carrying amount of
Rp1,967 billion, as part of its modernization program. Accordingly, Telkomsel accelerated the
depreciation of such equipment units. For the year ended December 31, 2015, the additional
depreciation expense amounted to Rp1,410 billion.
The impact of the acceleration of depreciation of certain equipment units will decrease profit
before income tax in future periods as follows:
Years
2016
2017
Amount
274
30
(vi) Exchange of property and equipment
In 2012 and 2011, the Company entered into a Procurement and Installation Agreement for
the Modernization of the Copper Cable Network through Optimalization of Asset Copper
Cable Network through Trade In/Trade Off method with PT LEN Industri (“LEN”) and PT
Industri Telekomunikasi Indonesia (“INTI”), respectively.
In 2015 and 2014, the Company derecognized the copper cable network asset with net
carrying value of Rp7 billion and Rp1.8 billion, respectively, and recorded the fiber optic
network asset from the exchange transaction of Rp750 billion and Rp435 billion, respectively.
(vii) The Group owns several pieces of land located throughout Indonesia with Building Use Rights
(“Hak Guna Bangunan” or “HGB”) for a period of 10-45 years which will expire between 2016
and 2053. Management believes that there will be no issue in obtaining the extension of the
land rights when they expire.
(viii) As of December 31, 2015, the Group’s property and equipment excluding land rights, with net
carrying amount of Rp93,460 billion were insured against fire, theft, earthquake and other
specified
totalling
Rp10,980 billion, US$99 million, HKD3 million and SGD34 million. Management believes that
the insurance coverage is adequate to cover potential losses from the insured risks.
interruption, under blanket policies
including business
risks,
58
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(ix) As of December 31, 2015, the percentage of completion of property under construction was
around 58.49% of the total contract value, with estimated dates of completion between
January 2016 and December 2017. The balance of property under construction mainly
consists of buildings, transmission installation and equipment, cable network and power
supply. Management believes that there is no impediment to the completion of the
construction in progress.
(x) All assets owned by
for bonds
(Notes 19a and 19b). Certain property and equipment of the Company’s subsidiaries with
gross carrying value amounting to Rp9,003 billion have been pledged as collateral under
lending agreements (Notes 16 and 20).
the Company have been pledged as collateral
(xi) As of December 31, 2015, the cost of fully depreciated property and equipment of the Group
that are still used in operations amounted to Rp54,168 billion. The Group is currently
performing modernization of network assets to replace the fully depreciated property and
equipment.
(xii) In 2015, the total fair values of land rights and buildings of the Group, which are determined
based on the sale value of the tax object (“Nilai Jual Objek Pajak” or “NJOP”) of the related
land rights and buildings, amounted to Rp22,455 billion.
(xiii) The Company and Telkomsel entered into several agreements with tower providers to lease
spaces in telecommunication towers (slot) and sites of the towers for a period of 10 years.
The Company and Telkomsel may extend the lease period based on mutual agreement with
the relevant parties. In addition, the Group also has lease commitments for transmission
installation and equipment, data processing equipment, office equipment, vehicles and CPE
assets with the option to purchase certain leased assets at the end of the lease terms.
Future minimum lease payments required for assets under finance lease are as follows:
Years
2015
2016
2017
2018
2019
2020
Thereafter
Total minimum lease payments
Net present value of minimum lease payments
Current maturities (Note 17a)
Long-term portion (Note 17b)
59
2015
2014
-
1,027
991
888
800
766
1,597
6,069
4,580
(641)
3,939
975
927
898
830
758
725
1,422
6,535
4,789
(571)
4,218
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(xiii) The details of obligations under finance leases for the years ended December 31, 2015 and
2014 are as follows:
PT Tower Bersama Infrastructure
PT Profesional Telekomunikasi Indonesia
PT Solusi Tunas Pratama
PT Putra Arga Binangun
PT Bali Towerindo Sentra
PT Naragita Dinamika Komunika
Others (each below Rp75 billion)
2015
2014
1,589
1,460
340
227
132
84
748
1,713
1,596
368
244
143
109
616
Total
4,580
4,789
11. ADVANCES AND OTHER NON-CURRENT ASSETS
Advances and other non-current assets as of December 31, 2015 and 2014 consist of:
Advances for purchase of property and equipment
Prepaid rental - net of current portion (Note 8)
Deferred charges
Frequency license - net of current portion (Note 8)
Long-term trade receivables - net of current portion (Note 6)
Restricted cash
Security deposit
Others
Total
2015
2014
3,653
2,190
444
404
172
111
96
83
7,153
3,354
1,587
484
493
362
112
72
15
6,479
Prepaid rental covers rent of leased line and telecommunication equipment and land and building
under lease agreements of the Group with rental periods ranging from 1 to 40 years.
As of December 31, 2015 and 2014, deferred charges represent deferred Revenue-Sharing
Arrangement (“RSA”) charges and deferred Indefeasible Right of Use (“IRU”) Agreement charges.
Total amortization of deferred charges for the years ended December 31, 2015 and 2014 amounted to
Rp46 billion and Rp86 billion, respectively.
Refer to Note 36 for details of related party transactions.
60
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
12. INTANGIBLE ASSETS
The details of intangible assets are as follows:
Goodwill
Software
License
Other
intangible
assets
Total
Gross carrying amount:
Balance, December 31, 2014
Additions
Deductions
Reclassifications/translations
Balance, December 31, 2015
Accumulated amortization and
impairment losses:
Balance, December 31, 2014
Amortization
Deductions
Reclassifications/translations
Balance, December 31, 2015
Net Book Value
322
15
-
(1)
336
(29 )
-
-
-
(29 )
307
4,771
1,489
(1)
8
6,267
(2,862)
(883)
1
(4)
(3,748)
2,519
Goodwill
Software
License
Gross carrying amount:
Balance, December 31, 2013
Additions
Acquisition (Note 3)
Deductions
Reclassifications/translations
270
-
54
-
(2)
Balance, December 31, 2014
322
Accumulated amortization and
impairment losses:
Balance, December 31, 2013
Amortization
Deductions
Reclassifications/translations
Balance, December 31, 2014
Net Book Value
(29)
-
-
-
(29)
293
3,432
1,340
-
(0)
(1)
4,771
(2,278)
(583)
-
(1)
(2,862)
1,909
67
1
-
-
68
(43)
(6)
-
-
(49)
19
67
0
-
-
-
67
(37)
(6)
-
-
(43)
24
572
9
-
(1)
580
(335)
(34)
-
-
(369)
211
5,732
1,514
(1)
6
7,251
(3,269)
(923)
1
(4)
(4,195)
3,056
Other
intangible
assets
Total
401
107
78
(13)
(1)
572
(318)
(30)
13
-
(335)
237
4,170
1,447
132
(13)
(4)
5,732
(2,662)
(619)
13
(1)
(3,269)
2,463
(i) Goodwill resulted from acquisition of CCA in 2014 (Note 3), sales-purchase transaction of Data
Center Business between Sigma and BDM in 2012, and acquisitions of Ad Medika in 2010 and
Sigma in 2008. The addition of goodwill in the current year resulted from acquisition of MNDG
(Note 1d).
(ii) The remaining amortization periods of software range from 1 to 6 years.
(iii) As of December 31, 2015, the cost of fully amortized intangible assets that are still used in
operations amounted to Rp2,405 billion.
61
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
13. TRADE PAYABLES
Related parties
Purchase of equipment, materials and services
Payables to other telecommunication providers
Sub-total
Third parties
Purchase of equipment, materials and services
Radio frequency usage charges, concession fees
and Universal Service Obligation charges
Payables to other telecommunication providers
Sub-total
Total
Trade payables by currency are as follows:
Rupiah
U.S. dollar
Others
Total
Refer to Note 36 for details of related party transactions.
14. ACCRUED EXPENSES
Operations, maintenance and telecommunication services
General, administrative and marketing expenses
Salaries and benefits
Interest expenses and administration bank charges
Total
Refer to Note 36 for details of related party transactions.
15. UNEARNED INCOME
Prepaid pulse reload vouchers
Other telecommunications services
Others
Total
62
2015
2014
(As restated)
1,891
184
2,075
9,593
1,328
998
11,919
13,994
723
174
897
9,471
1,160
834
11,465
12,362
2015
2014
(As restated)
11,169
2,791
34
13,994
9,479
2,837
46
12,362
2015
2014
4,459
1,859
1,689
240
8,247
2,640
1,291
1,091
189
5,211
2015
2014
3,630
96
634
4,360
3,588
78
297
3,963
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. SHORT-TERM BANK LOANS
The breakdown of short-term bank loans is as follows:
Lenders
Currency
2015
Outstanding
2014
Outstanding
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
UOB
Bank CIMB Niaga
PT Bank Danam on Indonesia
Tbk (“Bank Danamon”)
Citibank
Others
Total
Rp
Rp
Rp
US$
Rp
-
-
-
-
-
Refer to Note 36 for details of related party transactions.
200
152
80
-
170
602
-
-
-
100
-
200
234
60
1,244
72
1,810
Other significant information relating to short-term bank loans as of December 31, 2015 is as follows:
Total
facility
(in
Borrower Currency billions)
Maturity
date
Interest
payment
period
Interest
rate
per annum
Security
Bank CIMB Niaga
April 25, 2005a
Balebate Rp
12
July 30, 2017 Monthly
13.00%
Trade receivables
April 29, 2008a
Balebate Rp
10
July 30, 2017 Monthly
March 21, 2013b
Infomedia Rp
38
October 18, 2016 Monthly
March 25, 2013b
Infomedia
Rp
38
October 18, 2016 Monthly
March 27, 2013b
Infomedia
Rp
24
October 18, 2016 Monthly
April 28, 2013c
GSD
Rp
85
June 24, 2016 Monthly
September 22,
2014a
October 29,
2014
UOB
November 22,
Balebate Rp
5
July 30, 2017 Monthly
Infomedia Rp
50
October 29, 2016 Monthly
Solusi
Humanikaf
2013
Infomedia
Rp
200 November 22, 2016 Monthly
Danamon
August 23,
2013d
Infomedia
Rp
80
August 23, 2016 Monthly
63
(Note 6),
inventories (Note 7),
equipment (Note 10)
Trade receivables
13.00%
(Note 6),
inventories (Note 7),
property and
equipment (Note 10)
Trade receivables
(Note 6)
Trade receivables
(Note 6)
Trade receivables
(Note 6)
Property and
equipment
(Note 10)
Trade receivables
12.00%
12.00%
12.00%
11.50%
13.00%
(Note 6),
inventories (Note 7)
property and
equipment (Note 10)
Trade
receivables (Note 6)
12.00%
12.00%
Trade
receivables (Note 6)
12.00%
Trade
receivables (Note 6)
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. SHORT-TERM BANK LOANS (continued)
The credit facilities were obtained by the Company’s subsidiaries for working capital purposes.
a Based on the latest amendment on December 14, 2015.
b Based on the latest amendment on December 21, 2015.
c Based on the latest amendment on November 11, 2014.
d Based on the latest amendment on August 11, 2015.
e MD Media’s subsidiary.
f
Infomedia’s subsidiary.
17. CURRENT MATURITIES OF LONG-TERM LIABILITIES
a. Current maturities
Bank loans
Obligations under finance leases
Two-step loans
Bonds and notes
Total
b. Long-term portion
Notes
20
10c.xiii
18
19
Scheduled principal payments as of December 31, 2015 are as follows:
2015
2014
4,052
571
207
1,069
5,899
2,928
641
224
49
3,842
Year
Notes
Total 2017 2018 2019 2020 Thereafter
15,434 3,022 7,910
Bank loans
31
Bonds and notes
9,499
629
Obligations under finance leases 10c.xiii 3,939
202
1,296
Two-step loans
32
667
226
20
19
18
1,631 1,565 1,306
251 2,146 7,039
614 1,433
596
500
184
184
Total
30,168 3,947 8,772 2,662 4,509 10,278
Refer to Note 36 for details of related party transactions.
18. TWO-STEP LOANS
Two-step loans are unsecured loans obtained by the Government from overseas banks which are
then re-loaned to the Company. Loans obtained up to July 1994 are payable in rupiah based on the
exchange rate at the date of drawdown. Loans obtained after July 1994 are payable in their original
currencies and any resulting foreign exchange gain or loss is borne by the Company.
Lenders
Overseas banks
Total
Current maturities (Note 17a)
Long-term portion (Note 17b)
Currency
Yen
Rp
US$
2015
Outstanding
2014
Outstanding
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
7,679
-
31
792
365
363
1,520
(224)
1,296
796
438
381
1,615
(207)
1,408
6,911
-
26
64
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
18. TWO-STEP LOANS (continued)
Lenders
Overseas banks
Principal
payment
schedule
Interest
payment
period
Currency
Interest
rate
per annum
US$
Rp
Yen
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Semi-annually
Semi-annually
4.00%
8.54%
3.10%
The loans were intended for the development of telecommunications infrastructure and supporting
telecommunications equipment. The loans are due on various dates through 2024.
The Company had used all facilities under the two-step loans program since 2008.
Under the loan covenants, the Company is required to maintain financial ratios as follows:
a. Projected net revenue to projected debt service ratio should exceed 1.2:1 for the two-step loans
b.
originating from Asian Development Bank (“ADB”).
Internal financing (earnings before depreciation and finance costs) should exceed 20% compared
to annual average capital expenditures for loans originating from the ADB.
As of December 31, 2015, the Company has complied with the above-mentioned ratios.
Refer to Note 36 for details of related party transactions.
19. BONDS AND NOTES
The breakdownn of bonds and notes is as follows:
Bonds and notes
Currency
Bonds
2010:
Series A
Series B
2015:
Series A
Series B
Series C
Series D
Medium Term Notes (“MTN”)
GSD
Series A
Series B
Finnet
MTN I
Promissory notes
PT Huawei
PT ZTE Indonesia (“ZTE”)
Total
Unamortized debt issuance cost
Current maturities (Note 17a)
Long-term portion (Note 17b)
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
US$
US$
2015
Outstanding
2014
Outstanding
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
-
-
-
-
-
-
-
-
-
1
1
-
1,995
2,200
2,100
1,200
1,500
220
120
200
14
14
9,563
(15)
9,548
(49)
9,499
-
-
-
-
-
-
-
-
-
4
3
1,005
1,995
-
-
-
-
220
-
-
52
36
3,308
-
3,308
(1,069)
2,239
65
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
19. BONDS AND NOTES (continued)
a. Bonds
i. 2010
Bonds
Principal
Issuer
Listed
on
Issuance
date
Maturity
date
Interest
payment
period
Interest
rate
per annum
Series A
Series B
Total
1,005 The Company
1,995 The Company
IDX
IDX
June 25, 2010 July 6, 2015
June 25, 2010 July 6, 2020
Quarterly
Quarterly
9.60%
10.20%
3,000
The bonds are secured by all of the Company’s assets, movable or non-movable, either existing
or in the future (Note 10c.x). The underwriters of the bonds are PT Bahana Securities (“Bahana”),
PT Danareksa Sekuritas, and PT Mandiri Sekuritas and the trustee is PT CIMB Niaga Tbk.
The Company received the proceeds from the issuance of bonds on July 6, 2010.
The funds received from the public offering of bonds net of issuance costs, were used to finance
capital expenditures which consisted of wave broadband (bandwidth, softswitching, datacom,
information technology and others) and infrastructure (backbone, metro network, regional metro
junction, internet protocol, and satellite system) and to optimize legacy and supporting facilities
(fixed wireline and wireless).
As of December 31, 2015, the rating of the bonds issued by PT Pemeringkat Efek Indonesia
(Pefindo) is idAAA (stable outlook).
Based on the indenture trusts agreement, the Company is required to comply with all covenants or
restrictions, including maintaining financial ratios as follows:
1. Debt to equity ratio should not exceed 2:1.
2. EBITDA to finance costs ratio should not be less than 5:1.
3. Debt service coverage is at least 125%.
As of December 31, 2015, the Company has complied with the above-mentioned ratios.
ii. 2015
Bonds
Principal
Issuer
Listed
on
Issuance
date
Maturity
date
Interest
payment
period
Interest
rate
per annum
Series A
Series B
Series C
Series D
Total
2,200 The Company
2,100 The Company
1,200 The Company
1,500 The Company
IDX
IDX
IDX
IDX
June 23, 2015 June 23, 2022 Quarterly
June 23, 2015 June 23, 2025 Quarterly
June 23, 2015 June 23, 2030 Quarterly
June 23, 2015 June 23, 2045 Quarterly
9.93%
10.25%
10.60%
11.00%
7,000
The bonds are secured by all of the Company’s assets, movable or non-movable, either existing
or in the future (Note 10c.x). The underwriters of the bonds are Bahana, PT Danareksa Sekuritas,
PT Mandiri Sekuritas, and PT Trimegah Sekuritas and the trustee is Bank Permata.
66
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
19. BONDS AND NOTES (continued)
a. Bonds (continued)
The Company received the proceeds from the issuance of bonds on June 23, 2015.
The funds received from the public offering of bonds net of issuance costs, were used to finance
capital expenditures which consisted of wave broadband, backbone, metro network, regional
metro junction, information technology application, support, and merger and acquisition some
domestic and international entities.
Based on the indenture trusts agreement, the Company is required to comply with all covenants or
restrictions, including maintaining financial ratios as follows:
1. Debt to equity ratio should not exceed 2:1.
2. EBITDA to finance costs ratio should not be less than 4:1.
3. Debt service coverage is at least 125%.
As of December 31, 2015, the Company has complied with the above-mentioned ratios.
b. MTN
i. GSD
Notes
Currency Principal
Issuance
date
Maturity
date
Interest
payment
period
Interest
rate
per annum
Series A
Series B
Total
Rp
Rp
220 November 14, 2014 November 14, 2019 Semi-annually
March 6, 2020 Semi-annually
120
March 6, 2015
11%
11%
340
Based on Agreement of Issuance and Appointment of Monitoring and Insurance Agents of
Medium Term Notes PT Graha Sarana Duta Year 2014 dated November 13, 2014 as covered by
notarial deed No. 30 of Arry Supratno, S.H., GSD will issue MTN with the principle amount up to
Rp500 billion in series.
PT Mandiri Sekuritas act as the Arranger, Bank Mandiri as the Monitoring and Insurance Agent,
and PT Kustodian Sentral Efek Indonesia (“KSEI”) as the Custodian. The funds obtained from
MTN are used for investment projects.
Trade receivables, inventories, land and building related with investment development funded by
MTN that has owned or will be owned by GSD (Notes 6, 7 and 10).
Under to the agreement, GSD is required to comply with all covenants or restrictions including
maintaining financial ratios as follows :
1. Debt to equity ratio should not exceed 6.5:1.
2. EBITDA to interest ratio should not be less than 1.2:1.
3. Minimum current ratio is 120%.
4. Maximum leverage ratio is 450%.
As of December 31, 2015, GSD has complied with the above-mentioned ratios.
67
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
19. BONDS AND NOTES (continued)
b. MTN
ii. Finnet
Notes
Currency Principal
MTN I
Issuance
date
Maturity
date
Interest
payment
period
Interest
rate
per annum
Finnet 2015
Rp
200
Juli 1, 2015
Juli 1, 2022
Quarterly
11%
Based on Agreement of Debt Acknowledgement of Medium Term Notes (MTN) I Finnet Year 2015
dated June 30, 2015 as covered by notarial deed No. 47 of Utiek R. Abdurachman, S.H., MLI.,
MKn., Finnet will issue MTN through private placement with the principle amount up to Rp200
billion.
PT BNI Asset Management acts as the arranger, PT Bank Mega Tbk as the trustee and KSEI as
the Custodian.
The funds obtained from MTN are used for Finnet’s working capital related to Retail National
Channel Bank project as Telkomsel’s billing payment aggregator.
The rating of the MTN issued by PT Fitch Rating Indonesia is A (ind). The MTN is not secured by
any specific collateral. The MTN are secured by all of Finnet’s assets, movable or non-movable
either existing or in the future.
Under the agreement, Finnet is required to comply with all covenants or restrictions, including
maintaining financial ratios as follows :
1. Debt to equity ratio should not exceed 3.5:1.
2. EBITDA to interest ratio should not be less than 2.5:1.
As of December 31, 2015, Finnet has complied with the above-mentioned ratios.
c. Promissory Notes
Supplier
Principal*
Currency (in billions)
Issuance
date
Principal
payment
schedule
Interest
payment
period
Interest
rate
per annum
PT Huawei
US$
0.2
April 30, 2013
Semi-annually
(January 30, 2016-
July 30, 2016)
Semi-annually 6 month LIBOR+1.5%
ZTE
US$
0.1
August 20, 2009a
Semi-annually 6 month LIBOR+1.5%
Semi-annually
(February 4, 2016 -
February 4, 2017)
*
In original currency
aBased on the latest amendment on August 15, 2011
Based on Agreement of Frame Supply and Deferred Payment Arrangement between the
Company and each ZTE and PT Huawei, the promissory notes issued by the Company to each of
ZTE and PT Huawei are vendor financing facilities with no collateral covering 85% of Hand-over
Report (“Berita Acara Serah Terima”) projects with ZTE and PT Huawei.
68
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS
The breakdown of bank loans is as follows:
Lenders
Currency
Rp
Rp
Rp
US$
Rp
Rp
US$
Rp
US$
Rp
Rp
US$
Rp
US$
Rp
Syndication of banks
BNI
The Bank of Tokyo-Mitsubishi-
UFJ, Ltd.
Bank Mandiri
BRI
PT Bank ANZ Indonesia
Bank CIMB Niaga
PT Bank Sumitomo Mitsui Indonesia
Japan Bank for International
Cooperation (“JBIC”)
PT Bank Central Asia Tbk (“BCA”)
ABN Amro Bank N.V. Stockholm
(“AAB Stockholm”) and SCB
Others
Total
Unamortized debt issuance cost
Current maturities (Note 17a)
Long-term portion (Note 17b)
2015
Outstanding
2014
Outstanding
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
-
-
-
75
-
-
-
-
75
-
-
22
-
-
-
4,900
3,430
2,370
1,035
2,191
1,806
-
90
1,035
770
370
303
111
-
19
18,430
(68)
18,362
(2,928)
15,434
-
-
-
-
-
-
1
-
-
-
-
34
-
38
-
2,200
2,195
600
-
1,750
3,398
6
-
-
567
-
424
373
478
10
12,001
(71)
11,930
(4,052)
7,878
Refer to Note 36 for details of related party transactions.
Other significant information relating to bank loans as of December 31, 2015 is as follows:
Total
facility*
(in
Borrower
Currency billions)
Current
Principal
period
payment
payment
(in billions) schedule
Interest
paym ent
Interest
rate
period
per annum
Security
Syndication of banks
December 19, 2012
(BNI, BRI and
Bank Mandiri) a
March 13, 2015
a&j
(BNI and BCA)
March 13, 2015
a&j
(BNI and BCA)
BNI
October 13, 2010a
December 23, 2011 a
Dayamitra Rp
2,500
300 Semi-annually Quarterly
(2014-2020)
The Company
Rp
2,900
- Semi-annually Quarterly
GSD Rp
100
- Semi-annually Quarterly
(2016-2022)
(2016-2022)
3 months
JIBOR+3.00%
3 months
JIBOR+2.5%
3 months
JIBOR+2.5%
Trade
receivables
(Note 6)
property and
equipment
(Note 10)
None
None
The Company Rp
1,000
286 Semi-annually Quarterly
3 months
None
PINS Rp
500
86 Semi-annually Quarterly
(2013-2016)
(2013-2015)
JIBOR+1.25%
3 months
JIBOR+1.50%
November 28, 2012a
Metra Rp
44
31
Semi-annually Monthly
11.00%
(2013-2015)
69
Trade
receivables
(Note 6),
inventories
(Note 7)
Trade
receivables
(Note 6),
property
and
equipment
(Note 10)
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
Other significant information relating to bank loans as of December 31, 2015 is as follows (continued):
Total
facility*
(in
Borrower
Currency billions)
Current
Principal
period
payment
payment
(in billions) schedule
Interest
paym ent
Interest
rate
period
per annum
Security
BNI (continued)
March 13, 2013a&e
Sigma Rp
300
-
Monthly Monthly
(2016-2020)
March 26, 2013a
Metra Rp
60
20
Quarterly Monthly
(2013-2016)
November 20, 2013
The Company Rp
1,500
375 Semi-annually Quarterly
(2015-2018)
November 25, 2013a
Metra Rp
90
30
Quarterly Monthly
(2013-2016)
January 10, 2014 a&e
Sigma Rp
247
-
Monthly Monthly
(2016-2022)
July 21, 2014 a
Metra
Rp
40
13
Semi-annually Monthly
(2015-2017)
November 3, 2014 a&i
Telkom Rp
Infratel
450
65
Quarterly Monthly
(2015-2018)
April 8, 2015 a
Telkomsel Rp
1,000
- April 14, 2018 Quarterly
3 months
JIBOR+3.35%
10.00%
3 months
JIBOR+2.65%
10.00%
1 month
JIBOR+3.35%
10.00%
1 month
JIBOR+3.35%
3 months
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
None
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
Trade
receivables
(Note 6)
None
June 10, 2015
a
Metra
Rp
44
7
Semi-annually Monthly
10.00%
(2015-2017)
JIBOR+1.95%
October 12, 2015
Telkom Akses Rp
1,400
-
Semi-annually Quarterly
(2016-2019)
3 months
JIBOR+2.9%
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
Trade
receivables
(Note 6)
and
inventories
(Note 7)
The Bank of Tokyo –
Mitsubishi UFJ, Ltd.
October 9, 2014
Dayamitra Rp
600
-
Quarterly Quarterly
(2016-2019)
3 months
JIBOR+2.4%
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
70
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
Other significant information relating to bank loans as of December 31, 2015 is as follows (continued):
Total
facility*
(in
Borrower
Currency billions)
Current
Principal
period
payment
payment
(in billions) schedule
Interest
paym ent
Interest
rate
period
per annum
Security
The Bank of Tokyo –
Mitsubishi UFJ, Ltd. (continued)
March 13, 2015 a&j
Metra
Rp
March 13, 2015 a&j
Infomedia
Rp
April 8, 2015 a
April 8, 2015 a
Telkomsel
Rp
Telkomsel US$
November 2, 2015
Dayamitra
Rp
Bank Mandiri
July 9, 2009b and
July 5, 2010b
November 20, 2013
August 11, 2014
Telkomsel Rp
The Company Rp
Graha Yasa
Selaras
Rp
August 11, 2014
Graha Yasa Rp
Selaras
300
250
1,000
0.075
400
5,000
1,500
71
71
April 8, 2015 a
BRI
October 13, 2010a
The Company Rp
July 20, 2011a
Dayamitra Rp
-
-
-
Quarterly Quarterly
(2016-2020)
Quarterly Quarterly
(2016-2020)
April 14, 2018 Quarterly
- April 14, 2018 Quarterly
3 months
JIBOR+2.15%
3 months
JIBOR+2.15%
3 months
JIBOR+1.95%
3 months
LIBOR+1.20%
None
None
None
None
-
Quarterly Quarterly
(2017-2020)
3 months
JIBOR+2.6%
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
250 Semi-annually Quarterly
3 months
None
(2009-2016)
375
Semi-annually Quarterly
(2015-2018)
Monthly Monthly
(2016-2021)
JIBOR+1.00%
3 months
JIBOR+2.65%
3 months
JIBOR+3.25%
Monthly Monthly
(2016-2021)
3 months
JIBOR+3.25%
-
-
None
Property
and
equipment
(Note 10)
Property
and
equipment
(Note 10)
None
Telkomsel Rp
1,000
- April 14, 2018 Quarterly
3 months
JIBOR+1.95%
3,000
1,000
1,000 Semi-annually Quarterly
(2013-2015)
200 Semi-annually Quarterly
(2013-2017)
April 26, 2013
GSD Rp
141
37
Monthly Monthly
(2014-2018)
October 30, 2013
GSD Rp
70
5
Monthly Monthly
(2014-2021)
October 30, 2013
GSD Rp
34
4
Monthly Monthly
(2014-2021)
3 months
None
JIBOR+1.25%
10.00%
3 months
JIBOR+1.40%
and 3 months
JIBOR+3.50%
10.00%
Property
and
equipment
(Note 10)
Property
and
equipment
(Note 10) and
lease
agreement
Trade
receivables
(Note 6),
property and
equipment
(Note 10) and
lease
agreement
Trade
receivables
(Note 6),
property and
10.00%
November 20, 2013
The Company Rp
1,500
375
Semi-annually Quarterly
equipment
(Note 10) and
lease
agreement
None
3 months
(2015-2018)
JIBOR+2.65%
71
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
Other significant information relating to bank loans as of December 31, 2015 is as follows (continued):
Total
facility*
(in
Borrower
Currency billions)
Current
Principal
period
payment
payment
(in billions) schedule
Interest
paym ent
Interest
rate
period
per annum
Security
BRI (continued)
October 1, 2014
Patrakom Rp
28
14
Monthly Monthly
(2014-2016)
October 1, 2014
Patrakom US$
0.0007
0.0005
Monthly Monthly
(2014-2015)
October 1, 2014
Patrakom Rp
93
12
Monthly Monthly
(2015-2017)
10.95%
6.00%
10.95%
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
Trade
receivables
(Note 6),
property and
equipment
(Note 10)
Bank ANZ Indonesia
March 13, 2015 a&j
April 8, 2015 a
Bank CIMB Niaga
March 21, 2007 e
GSD Rp
90
-
June 13, 2020 Quarterly
Telkomsel US$
0.075
- April 14, 2018 Quarterly
3 months
JIBOR+2.00%
3 months
LIBOR+1.20%
None
None
GSD Rp
21
May 24, 2010 f
Balebath Rp
2
3
0
Quarterly Monthly
9.75%
(2007-2015)
Monthly Monthly
10.75%
(2010-2015)
Property
and
equipment
(Note 10)
Trade
receivables
(Note 6),
inventories
(Note 7),
property and
March 31, 2011
GSD Rp
24
3
Monthly Monthly
(2011-2020)
March 31, 2011
GSD Rp
13
2
Monthly Monthly
(2011-2019)
March 31, 2011
GSD Rp
12
1
Monthly Monthly
(2011-2016)
September 9, 2011
GSD Rp
41
4
Monthly Monthly
(2011-2021)
September 9, 2011
GSD Rp
11
1
Monthly Monthly
(2011-2015)
72
9.75%
9.75%
9.75%
9.75%
equipment
(Note 10)
Property
and
equipment
(Note 10) and
lease
agreement
Property
and
equipment
(Note 10) and
lease
agreement
Property
and
equipment
(Note 10) and
lease
Property
and
equipment
(Note 10) and
lease
agreement
Property
and
equipment
(Note 10) and
lease
agreement
9.75%
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
Other significant information relating to bank loans as of December 31, 2015 is as follows (continued):
Total
facility*
(in
Borrower
Currency billions)
Current
Principal
period
payment
payment
(in billions) schedule
Interest
paym ent
Interest
rate
period
per annum
Security
Bank CIMB Niaga (continued)
August 2, 2012f
Balebath
Rp
4
1
Monthly Monthly
10.75%
(2012-2015)
Trade
receivables
(Note 6),
inventories
(Note 7),
September 20, 2012a
TLT
Rp
1,150
September 20, 2012a
TLT
Rp
118
-
-
Monthly Monthly
(2015-2030)
Monthly Monthly
(2015-2030)
October 10, 2012f
Balebath
Rp
1
0
Monthly Monthly
(2012-2015)
August 26, 2013f
Balebath
Rp
3.5
1
Monthly Monthly
(2013-2018)
3 Months
JIBOR
+3.45%
9.00%
10.75%
10.75%
property and
equipment
(Note 10)
Property
and
equipment
(Note 10)
Property
and
equipment
(Note10)
Trade
receivables
(Note 6),
inventories
(Note 7),
property and
equipment
(Note 10)
Trade
receivables
(Note 6),
inventories
(Note 7),
property and
equipment
(Note 10)
PT Bank Sumitomo Mitsui
Indonesia
March 13, 2015 a&j
Metra
Rp
March 13, 2015 a&j
Infomedia
Rp
JBIC
March 26, 2010 a&d
The Company US$
March 28, 2013 a&g
The Company US$
300
250
0.06
0.03
-
-
Quarterly Quarterly
(2016-2020)
Quarterly Quarterly
(2016-2020)
3 months
JIBOR+2.15%
3 months
JIBOR+2.15%
None
None
0.006 Semi-annually Semi-annually
4.56%
None
(2010-2015)
0.006 Semi-annually Semi-annually
(2014-2019)
2.18% and
6 months
LIBOR+1.20%
3 months
JIBOR+1.00%
3 months
JIBOR+1.25%
None
None
None
Telkomsel
Rp
4,000
222 Semi-annually Quarterly
(2009-2016)
TII
Rp
200
40 Semi-annually Quarterly
(2011-2015)
BCA
July 9, 2009b
and July 5, 2010b
December 16, 2010a
AAB Stockholm
and SCB
December 30, 2009b&c
Telkomsel US$
0.3
0.041 Semi-annually Semi-annually
6 months
None
(2011-2016)
LIBOR+0.82%
73
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. BANK LOANS (continued)
The credit facilities were obtained by the Group for working capital purposes.
* In original currency
a As stated in the agreements, the Group is required to comply with all covenants or restrictions such as dividend distribution,
obtaining new loans, and maintaining financial ratios. As of December 31, 2015, the Group has complied with all covenants
or restrictions except for certain loan agreements. As of December 31, 2015, Group obtained waiver from the lenders for not
presuppose the loan payment as consequences of the breach of covenants, except for loan from BNI and CIMB Niaga. The
Group has classified loan from BNI and CIMB Niaga as part of current maturities of long-term liabilities (Note 17a).
b Telkomsel has no collateral for its bank loans, or other credit facilities. The terms of the various agreements with Telkomsel’s
lenders and financiers require compliance with a number of covenants and negative covenants as well as financial and other
covenants, which include, among other things, certain restrictions on the amount of dividends and other profit distributions
which could adversely affect Telkomsel’s capacity to comply with its obligation under the facility. The terms of the relevant
agreements also contain default and cross default clauses. As of December 31, 2015, Telkomsel has complied with the
above covenants.
c Pursuant to the agreements with PT Ericsson Indonesia (“Ericsson Indonesia”) and Ericsson AB (Note 39a.ii), Telkomsel
entered into an EKN-Backed Facility Agreem ent (“facility”) with ABN Amro Bank N.V. Stockholm branch (as “the original
lender”) and Standard Chartered Bank (as “the original lender” , “the arranger”, “the facility agent” and “the EKN agent”), and
ABN Amro Bank N.V., Hong Kong (as “the arranger”) for the purchase of Ericsson telecommunication equipment and
services. The facilities consist of facilities 1, 2, and 3 amounting to US$117 million, US$106 million, and US$95 million,
respectively. The availability period of facilities 1, 2, and 3 expired in July 2010, March 2011 and November 2011,
respectively. In October 2011, EKN agreed to reduce the premium on the unused facility by US$3 million through a cash
refund.
In connection with the agreement with NSW-Fujitsu Consortium, the Company entered into a loan agreement with JBIC, the
international arm of Japan Finance Corporation, for the purchase of NSW-Fujitsu Consortium telecommunication equipment
and services. The facilities consist of facilities A and B amounting to US$36 million and US$24 million, respectively.
d
e Based on the latest amendment on January 12, 2015.
f Based on the latest amendment on September 22, 2014.
g
In connection with the agreement with NEC Corporation Consortium and TE SubCom, the Company entered into a loan
agreement with JBIC, for the procurement of goods and services from NEC Corporation Consortium and TE SubCom for the
Southeast Asia Japan Cable System project. The facilities consist of facilities A and B amounting to US$18.8 million and
US$12.5 million, respectively.
h MD Media’s subsidiary.
i Based on the latest amendment on July 13, 2015.
j On March 13, 2015, the Company, GSD, Metra and Infomedia entered into several credit facilities agreements with PT Bank
Sumitomo Mitsui Indonesia, The Bank of Tokyo – Mitsubishi UFJ, Ltd., PT Bank ANZ Indonesia and syndication of banks
(BCA and BNI) amounting to Rp750 billion, Rp750 billion, Rp500 billion, and Rp3,000 billion, respectively. As of December
31, 2015, the unused facilities for PT Bank Sumitomo Mitsui Indonesia, The Bank of Tokyo – Mitsubishi UFJ, Ltd., PT Bank
ANZ Indonesia amounting to Rp200 billion, Rp200 billion and Rp410 billion, respectively.
21. NON-CONTROLLING INTERESTS
Non-controlling interests in net assets of subsidiaries:
Telkomsel
GSD
Metra
TII
Total
Non-controlling interests in total comprehensive
income (loss) of subsidiaries:
Telkomsel
Metra
TII
GSD
Total
74
2015
2014
(As restated)
18,024
137
95
36
18,292
18,015
125
89
42
18,271
2015
2014
(As restated)
7,818
(5)
(2)
7
7,818
6,728
21
3
(7)
6,745
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
21. NON-CONTROLLING INTERESTS (continued)
Material partly-owned subsidiary
As of December 31, 2015 and 2014, the non-controlling interest which is considered material to the
Company is non-controlling ownership interest in Telkomsel amounting to 35% (Note 1d).
The summarized financial information of Telkomsel below is provided based on amount before
elimination of intercompany balances and transactions.
Summarized statement of financial position
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Total equity
Attributable to:
Equity holders of parent company
Non-controlling interest
Summarized statement of profit or loss and other comprehensive income
2015
2014
(As restated)
25,660
58,426
(20,020)
(12,565)
51,501
20,465
58,887
(19,270)
(8,604)
51,478
33,477
18,024
33,463
18,015
Revenues
Operating expenses
Other income
Profit before income tax
Income tax expense - net
Profit for the year from continuing operations
Other comprehensive income - net
Total comprehensive income for the year
Attributable to non-controlling interest
Dividend paid to non-controlling interest
Summarized statements of cash flows
Operating activities
Investing activities
Financing activities
Net increase in cash and cash equivalents
75
2015
76,055
(46,429)
105
29,731
(7,363)
22,368
(29)
22,339
7,818
7,810
2014
(As restated)
66,252
(40,683)
151
25,720
(6,329)
19,391
(165)
19,226
6,728
5,464
2015
2014
36,130
(12,951)
(19,456)
3,723
30,863
(11,052)
(15,563)
4,248
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
22. CAPITAL STOCK
Description
Series A Dwiwarna share
Government
Series B shares
Government
The Bank of New York Mellon Corporation*
Commissioners (Note 1b):
Hendri Saparini
Dolfie Othniel Fredric Palit
Hadiyanto
Parikesit Suprapto
Directors (Note 1b):
Alex J Sinaga
Heri Sunaryadi
Indra Utoyo
Muhammad Awaluddin
Honesti Basyir
Herdy Rosadi Haman
Abdus Somad Arief
Dian Rachmawan
Public (individually less than 5%)
Total
Treasury stock (Note 24)
Total
Description
Series A Dwiwarna share
Government
Series B shares
Government
The Bank of New York Mellon Corporation*
Directors (Note 1b):
Indra Utoyo
Honesti Basyir
Dian Rachmawan
Public (individually less than 5%)
Total
Treasury stock (Note 24)
2015
Number of
shares
Percentage
of ownership
Total
paid-up capital
1
51,602,353,559
8,161,361,980
18,982
17,084
519,640
502,555
42,723
37,965
1,182,295
1,154,755
1,155,295
37,663
37,965
98,505
38,429,695,633
98,198,216,600
2,601,779,800
100,799,996,400
0
52.55
8.31
0
0
0
0
0
0
0
0
0
0
0
0
39.14
100.00
-
100.00
0
2,580
408
0
0
0
0
0
0
0
0
0
0
0
0
1,922
4,910
130
5,040
2014
Number of
shares
Percentage
of ownership
Total
paid-up capital
1
51,602,353,559
9,472,920,180
27,540
540
60,540
37,100,491,240
98,175,853,600
2,624,142,800
0
52.56
9.65
0
0
0
37.79
100.00
-
0
2,580
474
0
0
0
1,855
4,909
131
5,040
Total
100,799,996,400
100.00
* The Bank of New York Mellon Corporation serves as the Depositary of the registered ADS holders for the Company’s ADSs.
The Company issued only 1 Series A Dwiwarna share which is held by the Government and cannot be
transferred to any party, and has a veto in the General Meeting of Stockholders of the Company with
respect to election and removal from the Boards of Commissioners and Directors, issuance of new
shares, and amendments of the Company’s Articles of Association.
76
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
23. ADDITIONAL PAID-IN CAPITAL
Proceeds from sale of 933,333,000 shares in excess of par value
through IPO in 1995
1,446
1,446
2015
2014
Excess of value over cost of selling 215,000,000 shares under the
treasury stock plan phase II (Note 24)
Excess of value over cost of selling 211,290,500 shares under the
treasury stock plan phase I (Note 24)
Difference in value arising from restructuring transactions and
other transactions between entities under common control
(Note 2d)
Excess of value over cost of treasury stock transferred to
employee stock ownership program (Note 24)
Excess of value over cost of selling 22,363,000 shares under the
treasury stock plan phase III (Note 24)
Capitalization into 746,666,640 Series B shares in 1999
Net
576
544
478
228
36
(373)
2,935
576
544
478
228
-
(373)
2,899
Difference in value arising from restructuring and other transactions of entities under common control
amounting Rp478 billion arose from the early termination of the Company’s exclusive rights to provide
local and inter-local fixed line telecommunication services, for which the Company is required by the
Government
the development of
telecommunication infrastructure. As of December 31, 2015 and 2014, the accumulated development
of the related infrastructure amounting to Rp537 billion, respectively.
this compensation
funds received
to use
from
the
for
24. TREASURY STOCK
Phase
Basis
Period
I
II
III
-
IV
EGM
AGM
AGM
BAPEPAM - LK
AGM
December 21, 2005 - June 20, 2007
June 29, 2007 - December 28, 2008
June 20, 2008 - December 20, 2009
October 13, 2008 - January 12, 2009
May 19, 2011 - November 20, 2012
Maximum Purchase
Number
of Shares
1,007,999,964
215,000,000
339,443,313
4,031,999,856
645,161,290
Amount
Rp5,250
Rp2,000
Rp3,000
Rp3,000
Rp5,000
Movements in treasury stock as a result of the repurchase of shares are as follows:
2015
2014
Number
of shares
%
Rp
Number
of shares
%
Rp
Beginning balance
Proceeds from sale of
treasury stock
2,624,142,800
2.60
3,836
3,699,142,800
3.67
5,805
(22,363,000)
(0.02)
(32)
(1,075,000,000)
(1.07)
(1,969)
Ending balance
2,601,779,800
2.58
3,804
2,624,142,800
2.60
3,836
77
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
24. TREASURY STOCK (continued)
Pursuant to the AGM of Stockholders of the Company held on June 11, 2010, the stockholders
approved the change in the Company’s plan for treasury stock phase I, II, and III to become (i) for
reissuance inside or outside stock exchange, (ii) for retirement of the stock by deducting from equity,
(iii) for equity stock conversion and (iv) for funding purposes.
Pursuant to the AGM of Stockholders of the Company held on May 19, 2011, the stockholders
approved to execute the repurchase plan for treasury stock phase IV.
In 2012, the Company bought back 237,270,500 shares (equal to 1,186,352,500 shares after stock
split) from the public (part of stock repurchase program phase IV) for Rp1,744 billion.
In the AGM on April 19, 2013, the Company's stockholders approved the change to the plan for the
treasury stock phase III, which was decided to be used for the implementation of the Employee Stock
Ownership Program (“ESOP”) for the year 2013.
On July 30, 2013, the Company resold 211,290,500 shares (equal to 1,056,452,500 shares after stock
split) of treasury stock phase I with fair value amounting to Rp2,368 billion (net of related costs to sell
the shares). The excess amounting to Rp544 billion in value of the treasury shares sold over their
acquisition cost was recorded as additional paid-in capital (Note 23).
On June 13, 2014, the Company resold 215,000,000 shares (equal to 1,075,000,000 shares after
stock split) of treasury stock phase II with fair value amounting to Rp2,541 billion (net of related costs
to sell the shares). The excess amounting to Rp576 billion in value of the treasury stock sold over their
acquisition cost was recorded as additional paid-in capital (Note 23).
On December 21, 2015, the Company resold 4,472,600 shares (equal to 22,363,000 shares after
stock split) of treasury stock phase III with fair value amounting to Rp68 billion (net of related costs to
sell the shares). The excess amounting to Rp36 billion in value of the treasury stock sold over their
acquisition cost was recorded as additional paid-in capital (Note 23).
25. REVENUES
2015
2014
Telephone revenues
Cellular
Usage charges
Features
Monthly subscription charges
Fixed lines
Usage charges
Monthly subscription charges
Call center
Others
Total telephone revenues
Interconnection revenues
Domestic interconnection
International interconnection
Total interconnection revenues
78
35,803
1,050
432
37,285
4,635
2,821
275
102
7,833
32,972
751
567
34,290
5,347
2,697
290
101
8,435
45,118
42,725
2,276
2,014
4,290
2,908
1,800
4,708
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
25. REVENUES (continued)
Data, internet, and information technology service
revenues
Celullar internet and data
Short Messaging Services (“SMS”)
Internet, data communication and information technology
services
Pay TV
Others
2015
2014
19,665
15,132
12,432
456
135
13,563
14,034
9,987
96
128
Total data, internet, and information technology service
revenues
47,820
37,808
Network revenues
Leased lines
Satellite transponder lease
Total network revenues
Other telecommunications revenues
Sales of handset
Tower leases
Call center service
CPE and terminal
Others
Total other telecommunications revenues
Total revenues
719
512
1,231
1,516
721
668
221
885
4,011
102,470
610
670
1,280
582
700
446
451
996
3,175
89,696
The details of net revenues received by the Group from agency relationships for the years ended
December 31, 2015 and 2014 are as follows:
Gross revenues
Compensation to value added service providers
Net revenues
Refer to Note 36 for details of related party transactions.
2015
2014
20,414
(749)
13,933
(370)
19,665
13,563
79
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. PERSONNEL EXPENSES
The breakdown of personnel expenses is as follows:
Vacation pay, incentives and other benefits
Salaries and related benefits
Employees’ income tax
Early retirement program
Net periodic pension costs (Note 33)
Net periodic post-retirement health care benefit costs (Note 35)
Housing
LSA expenses (Note 34)
Insurance
Other employee benefits (Note 33)
Other post-retirement benefit costs (Note 33)
Others
Total
Refer to Note 36 for details of related party transactions.
2015
(As restated)
2014
4,225
4,052
1,632
683
432
216
212
152
138
53
47
32
11,874
3,182
3,759
1,317
-
654
248
224
115
98
56
48
86
9,787
27. OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES
The breakdown of operation, maintanance and telecommunication service expenses is as follows:
Operations and maintenance
Radio frequency usage charges (Notes 39c.i and 39c.ii)
Concession fees and Universal Service Obligation charges
Cost of handset sold (Note 7)
Leased lines and CPE
Electricity, gas and water
Cost of IT services
Tower rent
Cost of SIM cards and vouchers (Note 7)
Insurance
Vehicles rental and supporting facilities
Management project
Others (each below Rp75 billion)
Total
Refer to Note 36 for details of related party transactions.
2015
2014
15,658
3,626
2,230
1,493
1,384
1,014
882
646
444
312
296
117
14
28,116
11,827
3,207
1,818
421
758
1,180
357
1.065
610
335
272
180
258
22,288
80
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
28. GENERAL AND ADMINISTRATIVE EXPENSES
The breakdown of general and administrative expenses is as follows:
General expenses
Provision for impairment of receivables (Note 6d)
Professional fees
Training, education and recruitment
Collection expenses
Travelling
Meeting
Social contributions
Security and screening
Others (each below Rp75 billion)
Total
Refer to Note 36 for details of related party transactions.
29. INTERCONNECTION EXPENSES
The breakdown of interconnection expenses is as follows:
Domestic interconnection and access
International interconnection
Total
Refer to Note 36 for details of related party transactions.
30. TAXATION
a. Claims for tax refund
The Company
Corporate income tax
Value added tax (“VAT”) (Note 30e.i)
Subsidiaries
Corporate income tax
Value tax added (“VAT”) (Note 30e.ii)
Income tax
Article 23 - Withholding tax on service delivery
Total claims for tax refund
Short-term portion
Long-term portion
81
2015
2014
1,032
1,010
424
393
368
347
163
116
81
270
4,204
967
784
266
528
369
355
162
96
104
332
3,963
2015
2014
2,351
1,235
3,586
3,639
1,254
4,893
2015
2014
479
298
290
12
0
1,079
(66)
1,013
60
298
363
305
10
1,036
(291)
745
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
b. Prepaid taxes
2015
2014
The Company
Income tax
Article 19 - Revaluation of fixed assets (Note 30f)
VAT
Subsidiaries
Corporate income tax
VAT
Income tax
Article 23 - Withholding tax on service delivery
c. Taxes payable
The Company
Income taxes
Article 4 (2) - Final tax
Article 21 - Individual income tax
Article 22 - Withholding tax on goods delivery and
imports
Article 23 - Withholding tax on service delivery
Article 25 - Installment of corporate income tax
Article 26 - Withholding tax on non-resident income
VAT
VAT
VAT – Tax collector
Subsidiaries
Income taxes
Article 4 (2) - Final tax
Article 21 - Individual income tax
Article 22 - Withholding tax on goods delivery and
imports
Article 23 - Withholding tax on service delivery
Article 25 - Installment of corporate income tax
Article 26 - Withholding tax on non-resident income
Article 29 - Corporate income tax
VAT
82
750
350
1,100
16
1,536
20
1,572
2,672
2015
2014
37
51
2
23
17
2
-
396
528
54
113
1
102
237
9
1,548
681
2,745
3,273
-
-
-
28
835
27
890
890
27
25
2
10
61
2
197
257
581
81
97
-
72
483
28
957
77
1,795
2,376
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows:
Current
The Company
Subsidiaries
Deferred
The Company
Subsidiaries
2015
2014
(As restated)
201
8,164
8,365
(38)
(302)
(340)
8,025
822
6,794
7,616
(174)
(103)
(277)
7,339
The reconciliation between the income tax expense calculated by applying the applicable tax rate
of 20% to the profit before income tax less income subject to final tax, and the net income tax
expense as shown in the consolidated statement of profit or loss and other comprehensive income
is as follows:
Profit before income tax
Less income subject to final - net
Tax calculated at the Company’s applicable
statutory tax rate of 20%
Difference in applicable statutory tax rate
for subsidiaries
Non-deductible expenses
Final income tax expenses
Deferred tax assets that cannot be utilized-net
Others
Net income tax expense
2015
2014
(As restated)
31,342
(1,531)
29,811
28,613
(2,334)
26,279
5,962
1,511
322
111
-
119
8,025
5,256
1,237
498
168
94
86
7,339
83
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows: (continued)
The reconciliation between the profit before income tax and the estimated taxable income of the
Company for the year ended December 31, 2015 and 2014 is as follows:
2015
2014
(As restated)
Profit before income tax
Add back consolidation eliminations
Consolidated profit before income tax and eliminations
Less: profit before income tax of the subsidiaries
Profit before income tax attributable to the Company
Less: income subject to final tax
Temporary differences:
Provision for onerous contracts
Finance leases
Provision for personnel expenses
Valuation of fair value of put option and long-term investment
Net periodic pension and other post-retirement benefits costs
Provision for impairment of assets
Depreciation and gain on sale of property
and equipment
Provision for incentives to subscribers’ migration
Provision for impairment and
trade receivables written-off
Deferred installation fee
Other provisions
Net temporary differences
Permanent differences:
Employee benefits
Net periodic post-retirement health care benefit costs
Donations
Equity in net income of associates and subsidiaries
Others
31,342
15,553
46,895
(31,007)
15,888
(591)
15,297
547
231
127
117
12
-
(948)
(209)
(206)
(33)
296
(66)
232
216
175
(15,590)
287
28,613
13,110
41,723
(26,309)
15,414
(622)
14,792
-
64
(342)
8
370
805
(574)
209
574
11
19
1,144
244
248
209
(13,121)
170
Net permanent differences
(14,680)
(12,250)
Taxable income of the Company
Current corporate income tax expense
Final income tax expense
Total current income tax expense of the Company
Current income tax expense of the subsidiaries
Total current income tax expense
84
551
110
91
201
8,164
8,365
3,686
738
84
822
6,794
7,616
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows: (continued)
Tax Law No. 36/2008 which is futher regulated in Government Regulation No. 77/2013 stipulates
a reduction of 5% from the top rate applicable to qualifying listed companies, for those whose
stocks are traded in the IDX which meet the prescribed criteria that the public owns 40% or more
of the total fully paid and traded shares, and such shares are owned by at least 300 parties, with
each party owning less than 5% of the total paid-up shares. These requirements must be met by a
company for a period of 183 days in one tax year. The Company has met all of the required
criteria; therefore, for the purpose of calculating income tax expense and liabilities for the financial
reporting years ended December 31, 2015 and 2014, the Company has reduced the applicable
tax rate by 5%.
The Company applied the tax rate of 20% for the years ended December 31, 2014 and 2015. The
subsidiaries applied a tax rate of 25% for the years ended December 31, 2014 and 2015.
e. Tax assessment
(i) The Company
In November 2013, the Company received tax underpayment assesment letters (“SKPKBs”)
No. 00056/207/07/093/13 to No. 00065/207/07/093/13 dated November 15, 2013, for the
underpayment of VAT for the period January - September and November 2007 amounting to
Rp142 billion. On January 20, 2014, the Company filed its objection to the Tax Authorities.
The Company has received the rejection of its objection through The Directorate General of
Taxation (“DGT”) decision letter No. 2498 to 2504 and 2541 to 2543/WPJ.19/2014 dated
December 16 and 18, 2014, respectively. The Company accepted the assessment on the
underpayment of VAT amounting to Rp22 billion (including penalty of Rp10 billion). The
accepted portion was charged to the 2014 consolidated statement of profit and loss and other
comprehensive income and the portion of VAT Interconnection amounting to Rp120 billion
(including penalty Rp39 billion) is recognized as claim for tax refund. The Company has filed
an appeal to the rejection of the objection on underpayment of VAT on Interconnections No.
Tel. 59 / KU000 / COP-10000000/2015 to No. Tel. 59 / KU000 / COP-10000000/2015 dated
March 12, 2015. As of the date of approval and authorization for the issuance of these
consolidated financial statements, the Company is still in the process of hearing in tax court.
In November 2014, the Company received SKPKBs as the result of tax audit for fiscal year
2011 from the Tax Authorities. Based on the letters, the Company received VAT
Underpayment assesment for the tax period January until December 2011 amounting to
Rp182.5 billion (including penalty Rp60 billion) and corporate income tax underpayment
assesment amounting to Rp2.8 billion (including penalty of Rp929 million). The Company has
paid the underpayment. The accepted portion on the underpayment VAT, amounting to Rp4.7
billion (including penalty of Rp2 billion) was charged to the 2014 consolidated statement of
profit or loss and other comprehensive income and the portion of VAT Interconnection
amounting to Rp178 billion (including penalty of Rp58 billion) is recognized as claim for tax
refund. The Company filed an objection VAT interconnection transactions in 2011 on January
7, 2015 No. Tel. 03 / KU000 / COP-10000000/2015 to No. Tel. 14 / KU000 / COP-
10000000/2015 to the Tax Authority. Regarding the case, The Tax authority rejected the
Company’s objection in the decree No. 1907 to 1914 dated October 20, 2015 for the tax
period January to August 2011, No. 2026 to 2028 dated November 2, 2015 for the tax period
October to December 2011 and No. 2642/WPJ.19/2015 dated December 29, 2015 for the tax
period September 2011. The Company has filed an appeal to the rejection of the objection on
January 20, 2016. As of the date of approval and authorization for the issuance of these
consolidated financial statements, the appeal is still in process.
85
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
e. Tax assessment (continued)
(ii) Telkomsel
On April 21, 2010, the Tax Authorities filed a judicial review request to the Indonesian
Supreme Court (“SC”) for the Tax Court’s acceptance of Telkomsel’s request to cancel the
Tax Collection Letter (“STP”) for the underpayment of December 2008 income tax Article 25
amounting to Rp429 billion (including a penalty of Rp8 billion). In May 2010, Telkomsel filed a
contra-appeal to the SC. As of the date of approval and authorization for issuance of these
consolidated financial statements, the judicial review is still in process.
In May and June 2012, Telkomsel received the refund of penalty on 2010 income tax article
25 underpayment amounting to Rp15.7 billion based on the Tax Court’s verdict. On July 17,
2012, the Tax Authorities filed a judicial review request to the SC on the Tax Court’s Verdict.
On September 14, 2012, Telkomsel filed a contra-appeal to the SC. As of the date of approval
and authorization for issuance of these consolidated financial statements, the judicial review is
still in process.
On March 12, 2012, Telkomsel received assessment letters as a result of a tax audit for the
fiscal year 2010 by the Tax Authorities. Based on the letters, Telkomsel overpaid the
corporate income tax and underpaid the value added tax amounting to Rp597.4 billion and
Rp302.7 billion (including penalty of Rp73.3 billion), respectively. Telkomsel accepted the
assessment on the overpayment of corporate income tax and Rp12.1 billion of the
underpayment of the value added tax (including penalty of Rp6.3 billion). The accepted
portion was charged to the 2012 consolidated statement of profit and loss and other
comprehensive income. On April 5, 2012, Telkomsel received a refund for the overpayment of
corporate income tax for fiscal year 2010 amounting to Rp294.7 billion, net of underpayment
of value added tax. On May 24, 2012, Telkomsel filed an objection to the Tax Authorities for
the underpayment of value added tax of Rp290.6 billion (including penalty of Rp67 billion) and
recorded it as a claim for tax refund. On May 1, 2013, the Tax Authorities rejected Telkomsel’s
objection. Subsequently, on July 29, 2013, Telkomsel filed an appeal to the Tax Court. On
March 16, 2015, the Tax Court accepted Telkomsel’s appeal on the 2010 value added tax
totaling Rp290.6 billion. On May 13, 2015, Telkomsel received a refund for value added tax
and amounting to Rp290.7 billion (net of STP amounting to Rp3.837 million). In May 2015,
Telkomsel request to Tax Authorities to cancel the STP. As the date of approval and
authorization for the issuance of these consolidated financial statements, the request is still in
process and the amount is recorded as part of claim for tax refund.
In December 2013, the Tax Court accepted Telkomsel’s appeal on the 2006 value added tax
and withholding taxes totaling Rp116 billion. In February 2014, Telkomsel received the refund.
On November 7, 2014, Telkomsel received assessment letters as a result of a tax audit for the
fiscal year 2011 by the Tax Authorities. According to the letters, Telkomsel is liable for the
underpayment of corporate income tax, value added tax and withholding tax amounting to
Rp257.8 billion, Rp2.9 billion and Rp2.2 billion (including penalty of Rp85.3 billion),
respectively. Telkomsel accepted the assessment of Rp7.8 billion of the underpayment of
corporate income tax, Rp1 billion of the underpayment of the value added tax and Rp2.2
billion of the underpayment of the withholding tax (including penalty of Rp3.5 billion). The
accepted portion was charged to the 2014 statement of profit and loss and other
comprehensive income. In December 2014, Telkomsel paid the underpayments. In December
2014, Telkomsel filed an objection to the Tax Authorities for the underpayment of corporate
income tax of Rp250 billion (including penalty of Rp81.1 billion) and value added tax of Rp1.9
billion (including penalty of Rp670 million), respectively. The underpayments were recorded as
part of a claim for tax refund. On November 17, 2015, through its Decision Letters, the Tax
Authorities rejected Telkomsel Objection for CIT. Subsequently, in December 2015 Telkomsel
received Decision Letters from Tax Authorities which accepted part of Telkomsel objection for
VAT by reducing Telkomsel’s underpayment amounting to Rp380 million (including penalty of
Rp165 million).
86
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
e. Tax assessment (continued)
(ii) Telkomsel (continued)
Telkomsel plan to file an appeal to the Tax Court. As of the date of approval and authorization
for issuance of consolidated financial statements, the plan to file the appeal is still in process.
In August 2015, Telkomsel received the letter from the Tax Authorities which notified that the
Tax Authorities has confirmed that tower should be classified as building and depreciated for
20 years. This letter is based on specific tax ruling on fiscal depreciation of tower issued in
July 2015. Subsequently, part of claim for tax refund has been reclassified for principal portion
to deferred tax liabilities and penalty charged to profit and loss amounting to Rp125 billion and
Rp60 billion, respectively, and Rp66 billion remains as claim for tax refund.
In accordance with tax regulation, in September 2015 Telkomsel revised the fiscal
depreciation calculation of tower and filed the revised Corporate Income Tax Return for fiscal
year 2012, 2013, and 2014. As a result of the revised tax return, Telkomsel reclassified the
deferred tax liabilities to current tax payable and paid the underpayment of Corporate Income
Tax amounting to Rp174 billion. Subsequently, on September 11, 2015, The Indonesian Tax
Authorities issued Tax Collection Letters (“STPs”) amounting to Rp67 billion for Corporate
Income Tax late payment penalty of 2012 to 2014. On September 21, 2015, Telkomsel filed
the request for cancellation of such STPs to Tax Authority based on prevailing tax reinventing
policy. On November 26, 2015, Tax Authority accepted Telkomsel request and cancel the
STPs.
On July 3, 2015, in response to Telkomsel’s letter for claiming interest income related to VAT
and Withholding Tax for fiscal year 2006, Tax Authorities informed that Telkomsel's claim will
not be proceeded since the Tax Authorities filed a request for judicial review to Supreme
Court. As of the date of the report, Telkomsel has not received a formal letter from Tax Court
for the judicial review and the claim for interest income request is still in process.
f. Tax incentives
In December 2015, the Company took advantage of the Economic Policy Package V in the form of
tax incentives for fixed assets revaluation as stipulated in the Ministry of Finance Regulation
(“PMK”) No.191/PMK.010.2015 jo PMK No. 233/PMK.03/2015. In accordance with the PMK, the
Company is allowed to revaluate its fixed assets for tax purposes and will obtain special treatment
when the application of the revaluation is submitted to Directorate General of Taxation (“DGT”)
during the period between the effective date of PMK and December 31, 2016. The special
treatment is final income tax ranging from 3%-6% on the excess of the revaluation amount of fixed
assets over its original net book value.
On December 29, 2015, the Company filed an application for fixed assets revaluation using self-
assessed revaluation amount and has paid the related final income tax amounted to Rp750 billion.
Based on the PMK, the self-assessed revaluation amount should be revaluated by a public
independent appraiser (KJPP) or valuation specialist, which is registered with the Government,
before December 31, 2016. Upon verification of the completeness and accuracy of the application,
DGT may issue approval letter within 30 days after the receipt of complete application. The
Company has appointed a KJPP to perform fixed assets revaluation and, as of the completion
date of these consolidated financial statements, the revaluation is still in process. The Company
recorded and presented the final income tax paid as Prepaid Taxes.
87
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
g. Deferred tax assets and liabilities
The details of the Group's deferred tax assets and liabilities are as follows:
December 31,
2014
(As restated)
(Charged)
credited to the
consolidated
statements of
profit or loss
(Charged)
credited to the
consolidated
statements of
other
comprehensive
income
Reclassification
2015
December 31,
The Company
Deferred tax assets:
Provision for impairment of
receivable
Net periodic pension and other
post-retirement benefits costs
Accrued expenses and provision
for inventory obsolescence
Employee benefit provisions
Deferred installation fee
Finance leases
470
330
76
72
72
22
Total deferred tax assets
1,042
Deferred tax liabilities:
Difference between accounting
and tax bases of property
and equipment
Valuation of long-term investment
Land rights, intangible assets
and others
Total deferred tax liabilities
Deferred tax liabilities of
the Company
Telkomsel
Deferred tax assets:
Provisions for employee
benefits
Provision for impairment
of receivables
Recognition of interest under
USO arrangements
Total deferred tax assets
Deferred tax liabilities:
Difference between accounting
and tax bases of property
and equipment
Finance leases
Intangible assets
Total deferred tax liabilities
Deferred tax liabilities
of Telkomsel - net
Deferred tax liabilities of
other subsidiaries - net
Deferred tax liabilities - net
Deferred tax assets - net
(1,458 )
(69 )
(14 )
(1,541 )
(499 )
323
129
0
452
(2,044 )
(254 )
(61 )
(2,359 )
(1,907 )
(248 )
(2,654 )
95
(41 )
3
135
25
(7 )
47
162
(139 )
24
(9 )
(124 )
38
16
9
0
25
350
(131 )
9
228
253
(59)
233
107
88
-
2
-
-
-
-
2
-
-
-
-
2
10
-
-
10
-
-
-
-
10
1
13
(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
299
-
-
299
299
-
299
-
429
335
211
97
65
69
1,206
(1,597 )
(45 )
(23 )
(1,665 )
(459 )
349
138
0
487
(1,395 )
(385 )
(52 )
(1,832 )
(1,345 )
(306 )
(2,110 )
201
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
g. Deferred tax assets and liabilities
The details of the Group's deferred tax assets and liabilities are as follows:
(Charged)
credit to the consolidated
(Charged)
credit to the
Desember 31,
consolidated
statement of
(As restated) profit or loss
2013
other
comprehensive December 31,
Income
2014
The Company
Deferred tax assets:
Provision for impairment of receivables
Net periodic pension and other post-retirement
benefits costs
Accrued expenses and provision for
inventory obsolescence
Employee benefit provisions
Deferred installation fee
Finance leases
Total deferred tax assets
Deferred tax liabilities:
Difference between accounting and tax bases
of property and equipment
Valuation of long-term investment
Land rights, intangible assets, and others
Total deferred tax liabilities
Deferred tax liabilities of the Company - net
Telkomsel
Deferred tax assets:
Provisions for employee benefits
Provision for impairment of receivables
Recognition of interest under USO arrangements
Total deferred tax assets
Deferred tax liabilities:
Difference between accounting and tax bases
of property and equipment
Finance leases
Intangible assets
Total deferred tax liabilities
Deferred tax liabilities of Telkomsel - net
Deferred tax liabilities of other subsidiaries - net
Deferred tax liabilities - net
Deferred tax assets - net
446
341
27
143
70
9
1,036
(1,543)
(70)
(11)
(1.624)
(588)
239
121
0
360
(2,268)
(121)
(62)
(2,451)
(2,091)
(197)
(2,876)
67
24
74
49
(71)
2
13
91
85
1
(3)
83
-
(85)
-
-
-
-
470
330
76
72
72
22
(85)
1,042
-
-
-
-
(1,458)
(69)
(14)
(1.541)
174
(85 )
(499)
29
8
(0)
37
224
(133)
1
92
129
(51)
252
25
55
-
0
55
-
-
-
-
55
-
323
129
0
452
(2,044)
(254)
(61)
(2,359)
(1,907)
(248)
(30)
(2,654)
3
95
As of December 31, 2015 and 2014, the aggregate amounts of temporary differences associated
with investments in subsidiaries and associated companies, for which deferred tax liabilities have
not been recognized were Rp28,295 billion and Rp27,112 billion, respectively.
Realization of the deferred tax assets is dependent upon the Group’s capability in generating
future profitable operations. Although realization is not assured, the Group believes that it is
probable that these deferred tax assets will be realized through reduction of future taxable income
when temporary differences reverse. The amount of deferred tax assets is considered realizable;
however, it could reduce if actual future taxable income is lower than estimates.
89
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
30. TAXATION (continued)
h. Administration
From 2008 to 2015, the Company has been consecutively entitled to income tax rate reduction of
5% for meeting the requirements in accordance with the Government Regulation No. 81/2007 in
conjunction with the Ministry of Finance Regulation No. 238/PMK.03/2008. On the basis of
historical data, for the year ended December 31, 2015, the Company calculates the deferred tax
using the tax rate of 20%.
The taxation laws of Indonesia require that the Company and its local subsidiaries to submit
individual tax returns on the basis of self-assessment. Under prevailing regulations, the DGT may
assess or amend taxes within a certain period. For fiscal years 2007 and earlier, the period is
within ten years of the time the tax became due, but not later than 2013, while for fiscal years
2008 and onwards, the period is within five years of the time the tax became due.
The Minister of Finance of the Republic of Indonesia has issued Regulation No.85/PMK.03/2012
dated June 6, 2012 concerning the appointment of State-Owned Enterprises ("SOEs") to withhold,
deposit and report VAT and Sales Tax on Luxury Goods ("PPnBM") according to the procedures
outlined in the Regulation which is effective from July 1, 2012. The Minister of Finance of the
Republic Indonesia also has issued Regulation No.224/PMK.011/2012 dated December 26, 2012
concerning the appointment of SOEs to withhold income tax article 22 which is effective from
February 23, 2013. The Company has withheld, deposited, and reported the VAT and PPnBM or
VAT and also income tax article 22 in accordance with the Regulation.
The Company received a letter from the Large Tax Office Four No. Pemb-00 427 / WPJ.19 /
KP.0405 / RIK.SIS / 2015 dated June 29, 2015 regarding the notice of field examination for the tax
period January to December 2014. The Company received a certificate of tax audit exemption
from the DGT for fiscal years 2010 and 2012 which is valid unless the Company files for corporate
income tax overpayment, in which case a tax audit will be performed. As of the date of approval
and authorization of these consolidated financial statements, there is no tax audit performed for
fiscal years 2010, 2012, and 2013.
31. BASIC AND DILUTED EARNINGS PER SHARE
Basic earnings per share is computed by dividing profit for the year attributable to owners of the parent
company amounting to Rp15,489 billion and Rp14,471 billion by the weighted average number of
shares outstanding during the period totaling 98,176,527,553 shares and 97,695,785,107 shares after
stock split for the years ended December 31, 2015 and 2014, respectively. The weighted average
number of shares takes into account the weighted average effect of changes in treasury stock
transaction during the year.
Basic earnings per share amounting to Rp157.77 and Rp148.13 (in full amount) for the years ended
December 31, 2015 and 2014, respectively.
The Company does not have potentially dilutive financial investments as of December 31, 2015 and
2014.
90
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
32. CASH DIVIDENDS AND GENERAL RESERVE
Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 4 dated April 4,
2014 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of cash
dividend and special cash dividend for 2013 amounting to Rp7,813 billion (Rp80.46 per share) and
Rp2,130 billion (Rp21.94 per share), respectively. On May 16, 2014, the Company paid the cash
dividend and special cash dividend totalling Rp9,943 billion.
Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 26 dated April 17,
2015 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of cash
dividend and special cash dividend for 2014 amounting to Rp7,319 billion (Rp74.55 per share) and
Rp1,464 billion (Rp14.91 per share), respectively. On May 21, 2015, the Company paid the cash
dividend and special cash dividend totalling Rp8,783 billion.
Appropriation of Retained Earnings
Under the Limited Liability Company Law, the Company is required to establish a statutory reserve
amounting to at least 20% of its issued and paid-up capital.
The balance of the appropriated retained earnings of the Company as of December 31, 2015 and
2014 amounting to Rp15,337 billion, respectively.
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS
Notes
2015
2014
(As restated)
Prepaid pension benefit cost
The Company
MDM
Infomedia
Total
Pension benefit and other
post-employment benefit obligations
Pension
The Company - unfunded
Telkomsel
Total pension
Other post-employment benefit
Obligation under the Labor Law
Total
33a
33b.i
33b.ii
33c
33d
1,329
2
0
1,331
2,500
803
3,303
497
253
4,053
1,170
-
0
1,170
2,326
812
3,138
488
244
3,870
91
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The breakdown of the benefit expense recognized in the consolidated statements of profit or loss and
other comprehensive income is as follows:
Net periodic pension costs
The Company - funded
The Company - unfunded
Telkomsel
MDM
Infomedia
Net periodic pension costs
Other post-retirement benefit costs
Employee benefit costs under the Labor Law
Notes
2015
2014
(As restated)
33a
33b.i
33b.ii
26
26,33c
33d
12
251
168
1
0
432
47
53
254
274
126
-
0
654
48
56
Amounts recognized in OCI as of December 31, 2015 and 2014, respectively.
Notes
2015
2014
(As restated)
Defined benefit plan actuarial (gain) losses
Pension
The Company - funded
The Company - unfunded
Telkomsel
Infomedia
MDM
Post-employment health care benefit
Pension obligations based
Obligation under the Labor Law
Sub-total
Deferred tax effect at the applicable tax rates
Defined benefit plan actuarial (gain) losses, net of tax
a. Prepaid pension benefit costs
33a
33b.i
33b.ii
33c
33d
30f
(186)
187
15
(1)
0
11
20
46
(12)
34
(483 )
31
201
0
0
24
34
(193 )
27
(166 )
The Company sponsors a defined benefit pension plan for employees with permanent status prior
to July 1, 2002. The pension benefits are paid based on the participating employees’ latest basic
salary at retirement and the number of years of their service. The plan is managed by Telkom
Pension Fund (“Dana Pensiun Telkom” or “Dapen”). The participating employees contribute 18%
(before March 2003: 8.4%) of their basic salaries to the pension fund. The Company’s
contributions to the pension fund for the years ended December 31, 2015 and 2014 amounted to
RpNil, respectively.
92
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Prepaid pension benefit costs (continued)
The following table presents the changes in projected pension benefit obligations, changes in
pension benefit plan assets, funded status of the pension plan and net amount recognized in the
consolidated statements of financial position for the years ended December 31, 2015 and 2014,
on the defined benefit pension plan:
2015
2014
(As restated)
Changes in projected pension benefit
obligations
Projected pension benefit obligations
at beginning of year
Charged to profit or loss
Service costs
Past service cost - plan amendment
Interest costs
Pension plan participants’ contributions
Actuarial (losses) gain recognized in OCI
Expected pension benefits paid
Completion
17,402
14,883
218
(55)
1,445
45
(1,666)
(808)
(76)
188
204
1,348
45
1,471
(737)
-
Projected pension benefit obligations at end of year
16,505
17,402
Changes in pension benefit plan assets
Fair value of pension plan assets
at beginning of year
Interest income
Return on plan assets (excluding amount
included in net interest expense)
Pension plan participants’ contributions
Expected pension benefits paid
Administrative expenses paid
18,929
1,576
(1,837)
45
(808)
(71)
16,803
1,534
1,340
45
(737)
(56)
Fair value of pension plan assets at end of year
17,834
18,929
Funded status
Unrecoverable surplus (effect of asset ceiling)
Prepaid pension benefit cost
1,329
-
1,329
1,527
(357)
1,170
93
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Prepaid pension benefit costs (continued)
As of December 31, 2015 and 2014, pension plan assets mainly consisted of :
Cash and cash equivalent
Equity instruments
finance
Consumer goods
Infrastructure, utilities and
transportation
Construction, property and real estate
Basic industry and chemical
Trading, service and investment
Mining
Agriculture
Miscellaneous industries
Equity-based mutual fund
Fixed income instruments
Corporate bonds
Government bonds
Non-public equity
Direct placement
Property
Others
Total
2015
2014
Quoted in
active market
Unquoted
Quoted in
active market
Unquoted
1,335
1,153
953
637
573
163
183
45
29
240
1,120
-
7,257
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,587
-
163
156
240
2,476
1,137
796
724
508
409
269
142
62
325
1,172
-
6,526
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,351
451
153
153
275
13,688
4,146
14,546
4,383
Pension plan assets also include Series B shares issued by the Company with fair values totalling
Rp445 billion and Rp348 billion, representing 2.49% and 1.84% of total plan assets as of
December 31, 2015 and 2014, respectively, and bonds issued by the Company with fair value
totalling
Rp464 billion and Rp151 billion
as of December 31, 2015 and 2014, respectively.
representing 2.60% and 0.80% of
total assets
The expected return is determined based on market expectation for returns over the entire life of
the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets
was (Rp332 billion) and Rp2,817 billion for the year ended December 31, 2015 and 2014,
respectively. Based on the Company’s policy issued on January 14, 2014 regarding Dapen’s
Funding Policy, the Company will not contribute to Dapen when Dapen’s Funding Sufficiency
Ratio (FSR) is above 105%. Therefore, the Company does not expect to contribute to the defined
benefit pension plan in 2015.
Based on the Company policy issued on July 1, 2014, regarding Pension Regulation by Dana
Pensiun Telkom, there is an increase in monthly benefits given to the pensioners, widow/widower
or the children of participants who stopped working before the end of June 2002.
During 2015, the Company made a settlement to pensioners, widow/widower or the children of
participant who has monthly pension benefits under Rp1,500,000 and choose to withdraw their
pension benefits in lump sum.
94
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Prepaid pension benefit costs (continued)
The movements of the prepaid pension benefit cost during for the years ended December 31,
2015 and 2014 are as follows:
2015
2014
(As restated)
1,170
(27)
1,666
357
(1,837)
1,329
949
(262)
(1,471)
614
1,340
1,170
2015
2014
(As restated)
218
(55)
71
(131)
(76)
27
(15)
12
188
204
56
(186)
-
262
(8)
254
2015
2014
(As restated)
(1,666)
(357)
1,837
(186)
1,471
(614)
(1,340)
(483)
Prepaid pension benefit cost at
beginning of year
Net periodic pension benefit cost
Actuarial losses (gain) recognized via the OCI
Asset ceiling recognized via the OCI
Return on plan assets (excluding amount
included in net interest expense)
Prepaid pension benefit cost at end of year
The components of net periodic pension benefit cost are as follows:
Service costs
Past service cost – vesting
Plan administration cost
Net interest cost
Completion
Net periodic pension benefit cost
Cost to subsidiaries by agreement
Net periodic pension benefit cost less
cost to subsidiaries by agreement
Amounts recognized in OCI are as follows:
Actuarial (gain) losses recognized during
the year
Asset ceiling recognized via the OCI
Return on plan assets (excluding amount
included in net interest expense)
Net
95
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Prepaid pension benefit costs (continued)
The actuarial valuation for the defined benefit pension plan and the other post-employment
benefits (Notes 33b and 33c) was performed based on the measurement date as of December 31,
2015 and 2014, with reports dated February 25, 2016 and February 24, 2015, respectively, by PT
Towers Watson Purbajaga (“TWP”), an independent actuary in association with Willis Towers
Watson (“WTW”) (formerly Towers Watson). The principal actuarial assumptions used by the
independent actuary as of December 31, 2015 and 2014 are as follows:
Discount rate
Rate of compensation increases
Indonesian mortality table
b. Pension benefit costs provisions
(i) The Company
2015
2014
9.00%
8.00%
2011
8.50%
8.00%
2011
The Company sponsors unfunded defined benefit pension plans and a defined contribution
pension plan for its employees.
The defined contribution pension plan is provided to employees hired with permanent status
on or after July 1, 2002. The plan is managed by Financial Institutions Pension Fund (“Dana
Pensiun Lembaga Keuangan” or “DPLK”). The Company’s contribution to DPLK is determined
based on a certain percentage of
to
Rp7 billion and Rp6 billion as of December 31, 2015 and 2014, respectively.
the participants’ salaries and amounted
Since 2007, the Company has provided pension benefit based on uniformulation for both
participants prior to and from April 20, 1992 effective for employees retiring beginning
February 1, 2009. In 2010, the Company replaced the uniformulation with Manfaat Pensiun
Sekaligus (“MPS”). MPS is given to those employees reaching retirement age, upon death or
upon becoming disabled starting from February 1, 2009.
The Company also provides benefits to employees during a pre-retirement period in which
they are inactive for 6 months prior to their normal retirement age of 56 years, known as pre-
retirement benefits (“Masa Persiapan Pensiun” or “MPP”). During the pre-retirement period,
the employees still receive benefits provided to active employees, which include, but are not
limited to, regular salary, health care, annual leave, bonus and other benefits. Since 2012, the
Company has issued a new requirement for MPP effective for employees retiring beginning
April 1, 2012, whereby the employee is required to file a request for MPP and if the employee
does not file the request, he or she is required to work until the retirement date.
96
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Pension benefit costs provisions (continued)
(i) The Company (continued)
The following table presents the change in projected pension benefits obligation of MPS and
MPP for the years ended December 31, 2015 and 2014:
Changes in projected pension benefit obligations
Unfunded projected pension benefit obligations
at beginning of year
Service costs
Interest costs
Actuarial losses recognized in OCI
Benefits paid by employer
Unfunded projected pension benefit
obligations at end of year
2015
2014
(As restated)
2,326
60
191
187
(264)
2,201
80
194
31
(180)
2,500
2,326
The components of total periodic pension benefit cost are as follows:
Service costs
Net interest cost
Total periodic pension benefit cost
2015
2014
(As restated)
60
191
251
80
194
274
Amounts recognized in OCI amounted to Rp187 billion and Rp31 billion as of December 31,
2015 and 2014, respectively.
The principal actuarial assumptions used by the independent actuary as of December 31,
2015 and 2014 are as follows:
Discount rate
Rate of compensation increases
Indonesian mortality table
2015
2014
9.00%
varies
2011
8.50%
8.00%
2011
97
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Pension benefit costs provisions (continued)
(ii) Telkomsel
Telkomsel provides a defined benefit pension plan to its employees. Under this plan,
employees are entitled to pension benefits based on their latest basic salary or take-home
pay and the number of years of their service. PT Asuransi Jiwasraya (“Jiwasraya”), a state-
owned life insurance company, manages the plan under an annuity insurance contract. Until
2004, the employees contributed 5% of their monthly salaries to the plan and Telkomsel
contributed any remaining amount required to fund the plan. Starting 2005, the entire
contributions have been fully made by Telkomsel.
Telkomsel’s contributions to Jiwasraya amounted to Rp192 and Rp98 billion for the years
ended December 31, 2015 and 2014, respectively.
The following table presents the change in projected pension benefits obligation, change in
pension plan assets, funded status of the pension plan and net amount recognized in the
Company’s consolidated statement of financial position for the years ended December 31,
2015 and 2014 of its defined benefit pension plan:
Changes in projected pension benefit obligation
Projected pension benefit obligation at beginning of year
Charged to profit or loss
Service costs
Net interest cost
Actuarial (losses) gain recognized in OCI
Expected benefits paid
2015
2014
(As restated)
1,281
101
106
(64)
(9)
899
74
81
234
(7)
Projected pension benefit obligation at end of year
1,415
1,281
Changes in pension benefit plan assets
Fair value of plan assets at beginning of year
Interest income in profit or loss
Return on plan assets (excluding amount included
in net interest expense)
Employer’s contributions
Expected benefits paid
Fair value of plan assets at end of year
Funded status
Provision for pension benefit cost
469
39
(79)
192
(9)
612
(803)
(803)
317
28
33
98
(7)
469
(812)
(812)
98
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Pension benefit costs provisions (continued)
(ii) Telkomsel (continued)
Movements of the provision for pension benefit cost for the years ended December 31, 2015
and 2014:
Provision for pension benefit cost at beginning of year
Periodic pension benefit cost
Actuarial gain (losses) recognized via the OCI
Return on plan assets (excluding amount included in net
interest expense)
Employer contributions
Provision for pension benefit cost at end of year
2015
2014
(As restated)
(812)
(168)
64
(79)
192
(803)
(583)
(126)
(234)
33
98
(812)
The components of the periodic pension benefit cost are as follows:
Service costs
Net interest cost
Total periodic pension benefit cost
Amounts recognized in OCI are as follows:
Actuarial (losses) gain recognized
during the year
Return on plan assets (excluding amount
included in net interest expense)
Total periodic pension benefit cost
2015
2014
(As restated)
101
67
168
74
52
126
2015
2014
(As restated)
(64)
79
15
234
(33)
201
The net periodic pension costs for the pension plan was calculated based on the
measurement date as of December 31, 2015 and 2014, with reports dated February 12, 2016
and
February 5, 2015, respectively, by TWP, an independent actuary in association with WTW.
The principal actuarial assumptions used by the independent actuary based on the
measurement date as of December 31, 2015 and 2014, are as follows:
Discount rate
Rate of compensation increases
Indonesian mortality table
99
2015
2014
9.25%
8.00%
2011
8.25%
6.50%
2011
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
c. Other post-employment benefits provisions
The Company provides other post-retirement benefits in the form of cash paid to employees on
their retirement or termination. These benefits consist of final housing allowance (“Biaya Fasilitas
Perumahan Terakhir” or “BFPT”) and home passage leave (“Biaya Perjalanan Pensiun dan
Purnabhakti” or “BPP”).
The changes of the projected other post-employment benefit obligations for the years ended
December 31, 2015 and 2014 are as follows:
Changes in projected other post-employment
benefits provision
Unfunded projected benefit obligations at beginning of year
Service costs
Net interest cost
Actuarial losses recognized in OCI
Benefits paid by employer
Provision for other post-employment benefits
2015
2014
(As restated)
488
8
39
11
(49)
497
450
9
39
24
(34)
488
The components of the projected other post-employment benefit cost as of December 31, 2015
and 2014 are as follows:
Service costs
Net interest cost
Total
2015
2014
(As restated)
8
39
47
9
39
48
Amounts recognized in OCI amounted to Rp11 billion and Rp24 billion as of December 31, 2015
and 2014, respectively.
The principal actuarial assumptions used by the independent actuary based on the measurement
date as of December 31, 2015 and 2014, are as follows:
Discount rate
Indonesian mortality table
d. Obligation under the Labor Law provisions
2015
2014
9.00%
2011
8.50%
2011
Under Law No. 13 Year 2003, the Group is required to provide minimum pension benefits, if not
covered yet by the sponsored pension plans, to its employees upon retirement age. The total
related obligation recognized as of December 31, 2015 and 2014 amounted to Rp253 billion and
Rp244 billion, respectively. The related employee benefits cost charged to expense amounted to
Rp53 billion and Rp56 billion for the years ended December 31, 2015 and 2014, respectively. The
actuarial (gain) losses recognized in OCI amounted to Rp20 billion and Rp34 billion for the years
ended December 31, 2015 and 2014, respectively.
100
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
e. Maturity Profile of Defined Benefit Obligation (“DBO”)
Weighted average duration of DBO for the Company and Telkomsel are 10.43 years and 11.86
years, respectively. The timing of benefits payments for 2015 is as follows (in millions of Rupiah):
Expected Benefits Payment
Company
Time Period
Funded
Unfunded
Telkomsel
Other post-
employment
benefits
Within next 10 years
Within 10-20 years
Within 20-30 years
Within 30-40 years
Within 40-50 years
Within 50-60 years
Within 60-70 years
Within 70-80 years
f. Sensitivity Analysis
14,641
19,912
17,377
11,453
26,115
301
13
0
3,164
235
15
1
-
-
-
-
1,166
5,183
5,275
730
-
-
-
-
613
148
47
4
-
-
-
-
1% change in discount rate and rate of salary would have effect on DBO, as follows:
Discount Rate
Rate of Compensation
Sensitivity 1% Increase 1% Decrease
__
1% Increase
1% Decrease
Funded
Unfunded
Telkomsel
Other post-employment benefits
(1,315)
(73)
(76)
(16)
1,542
78
82
18
375
72
82
-
(356)
(72)
(77)
-
The sensitivity analyses have been determined based on a method that extrapolates the impact
on DBO as a result of reasonable changes in key assumptions occurring at the end of the
reporting period.
The sensitivity results above determine the individual impact on the Plan’s end of the year DBO. In
reality, the Plan is subject to multiple external experience items which may move the DBO in
similar or opposite directions, and the Plan’s sensitivity to such changes can vary over time.
There are no changes in the methods and assumptions used in preparing the sensitivity analyses
from the previous period.
34. LONG SERVICE AWARDS (“LSA”)
Telkomsel and Patrakom provides certain cash awards or certain number of days leave benefits to its
employees based on the employees’ length of service requirements, including LSA and LSL. LSA are
either paid at the time the employees reach certain years during employment, or at the time of
termination. LSL are either certain number of days leave benefit or cash, subject to approval by
management, provided to employees who meet the requisite number of years of service and with a
certain minimum age.
The obligation with respect to these awards was determined based on an actuarial valuation using the
Projected Unit Credit method, and amounted
to Rp501 billion and Rp410 billion as of
December 31, 2015 and 2014, respectively. The related benefit costs charged to expense amounted
to Rp152 billion and Rp115 billion for the years ended December 31, 2015 and 2014, respectively
(Note 26).
101
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
35. POST-EMPLOYMENT HEALTH CARE BENEFITS PROVISIONS
The Company provides post-employment health care benefits to all of its employees hired before
November 1, 1995 who have worked for the Company for 20 years or more when they retire, and to
their eligible dependents. The requirement to work for 20 years does not apply to employees who
retired prior to June 3, 1995. The employees hired by the Company starting from November 1, 1995
are no longer entitled to this plan. The plan is managed by Yakes.
The defined contribution post-employment health care benefit plan is provided to employees hired with
permanent status on or after November 1, 1995 or employees with terms of service less than 20 years
to
at
Rp15 billion for the years ended December 31, 2015 and 2014, respectively.
retirement. The Company’s contribution
the plan amounted
time of
the
to
The following table presents the change in the projected post-employment health care benefits
obligation, change in post-employment health care benefits plan assets, funded status of the post-
employment health care benefits plan and net amount recognized in the Company’s consolidated
statement of financial position as of December 31, 2015 and 2014:
Changes in post-employment health
care benefit provision
Projected post-employment health care benefit obligation
at beginning of year
Service costs
Interest costs
Actuarial (losses) gain
Expected post-employment health care benefits paid
Post-employment health care benefit provision
at end of year
Changes in post-employment health care plan assets
Fair value of plan assets at beginning of year
Interest income
Return on plan assets (excluding amount included in net interest
expense)
Employer’s contributions
Expected post-employment health care benefits paid
Administrative expenses paid
2015
2014
(As restated)
11,505
49
961
(1,187)
(386)
10,653
45
942
238
(373)
10,942
11,505
11,064
924
(647)
-
(386)
(131)
9,660
863
814
226
(373)
(126)
Fair value of plan assets at end of year
10,824
11,064
Funded status
(118)
(441)
Provision for post-employment health care benefit
(118)
(441)
102
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
35. POST-EMPLOYMENT HEALTH CARE BENEFITS PROVISIONS (continued)
As of December 31, 2015 and 2014, plan assets consisted of:
Cash and cash equivalent
Listed shares:
Manufacturing and consumer
Finance industry
Construction
Infrastructure and telecommunication
Wholesale
Mining
Other industries:
Services
Agriculture
Biotech and Pharma Industry
Others
Equity-based mutual funds
Fixed income-based securities:
Fixed income mutual funds
Unlisted shares:
Private placement
Others
Total
2015
2014
Quoted in
active market
Unquoted
Quoted in
active market
Unquoted
811
571
566
301
211
70
12
33
23
6
3
1,129
6,837
-
-
10,573
-
-
-
-
-
-
-
-
-
-
-
-
-
213
38
251
794
516
369
271
202
145
69
65
23
9
38
1,767
6,589
-
-
10,857
-
-
-
-
-
-
-
-
-
-
-
-
-
177
30
207
Yakes plan assets also include Series B shares issued by the Company with fair value totalling
Rp174 billion and Rp140 billion representing 1.61% and 1.27% of total assets as of
December 31, 2015 and 2014, respectively.
The expected return is determined based on market expectation for returns over the entire life of
the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets
was Rp147 billion and Rp1,550 billion for the years ended December 31, 2015 and 2014,
respectively.
The movements of the provision for post-employment health care benefit for the years ended
December 31, 2015 and 2014 are as follows:
Changes in post-employment health care
benefit provision
Defined benefit liability at beginning of year
Net periodic pension cost
Employer contributions
Actuarial losses (gain) recognized via the OCI
Return on plan assets (excluding amount included in
net interest expense)
Provision for post-employment health care benefit
103
2015
2014
(As restated)
441
217
-
(1,187)
647
118
993
250
(226)
238
(814)
441
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
35. POST-EMPLOYMENT HEALTH CARE BENEFITS PROVISIONS (continued)
The components of net periodic post-employment health care benefit cost for the years ended
December 31, 2015 and 2014 are as follows:
Service costs
Plan administration cost
Net interest cost
Net periodic post-employment health care
benefit cost
Cost to subsidiaries by agreement
Periodic post-employment health care benefit cost
Less cost to subsidiaries
Amounts recognized in OCI are as follows:
Actuarial (losses) gain recognized during the year
Return on plan assets (excluding amount
included in net interest expense)
Net
2015
2014
(As restated)
49
131
37
217
(1)
216
45
126
79
250
(2)
248
2015
2014
(As restated)
(1,187)
647
(540)
238
(814)
(576)
The actuarial valuation for the post-employment health care benefits was performed based on the
measurement date as of December 31, 2015 and 2014, with reports dated February 25, 2016 and
February 24, 2015, respectively, by TWP, an independent actuary in association with WTW. The
principal actuarial assumptions used by the independent actuary as of December 31, 2015 and
2014 are as follows:
Discount rate
Health care costs trend rate assumed for next year
Ultimate health care costs trend rate
Year that the rate reaches the ultimate trend rate
Indonesian mortality table
December 31, December 31,
2015
2014
9.25%
7.00%
7.00%
2016
2011
8.50%
7.00%
7.00%
2015
2011
The timing of benefits payments for 2015 is as follows (in millions of rupiah):
Time Period
Within next 10 years
Within 10-20 years
Within 20-30 years
Within 30-40 years
Within 40-50 years
Within 50-60 years
Within 60-70 years
Within 70-80 years
Post-Employment Health Care Benefits
5,249
6,738
6,609
4,939
2,228
211
1
0
104
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
35. POST-EMPLOYMENT HEALTH CARE BENEFITS PROVISIONS (continued)
1% change in discount rate and rate of salary would have effect on DBO, as follows:
Sensitivity
Discount Rate
Rate of Compensation
1% Increase 1% Decrease
__
1% Increase
1% Decrease
Increase (decrease) in amounts
Increase (decrease) in amounts
Post-employment health care
(1,240)
1,507 1,643
(1,364)
36. RELATED PARTY TRANSACTIONS
In the normal course of its business, the Group entered into transactions with related parties. It is the
Company's policy that the pricings of these transactions be the same as those of arm’s length
transactions.
a. Nature of relationships and accounts/transactions with related parties
Details of the nature of relationships and accounts/transactions with significant related parties are
as follows:
Related parties
The Government
Ministry of Finance
Nature of
relationships parties
Majority stockholder
State-owned enterprises
Entity under common control
Indosat
Entity under common control
PT Aplikanusa Lintasarta
Entity under common control
(“Lintasarta”)
Indosat Mega Media
PT Perusahaan Listrik
Negara (“PLN”)
PT Pertamina (Persero)
(“Pertamina”)
PT Kereta Api
Indonesia (“KAI”)
PT Pegadaian
Entity under common control
Entity under common control
Entity under common control
Entity under common control
Entity under common control
PT Garuda Indonesia
Entity under common control
PT Indonesia Comnet
Plus (“ICON Plus”)
Entity under common control
105
Nature of accounts/transactions
Internet and data revenue, other
telecommunication service revenue, finance
income, finance costs, investment in
financial instruments
Internet and data revenue, other
telecommunication services
revenue, operating expenses,
purchase of property and
equipment, construction and installation
services, insurance expenses, finance
income, finance costs, investment in financial
instruments, insurance for property and
equipment, insurance for employees,
electricity expenses and cost of SIM cards
Interconnection revenue, network lease
revenue, satellite transponder usage revenue,
interconnection expenses, telecommunication
facilities usage expenses, operating and
maintenance expenses, usage of data
communication network system expenses
Interconnection revenue, network revenue,
leased lines expenses, and usage of
communication network system expenses
Network revenues
Electricity expenses, finance costs,
investment in financial instrument.
Internet and data revenue,
other telecommunication service revenue
Internet and data revenue,
other telecommunication service revenue
Internet and data revenue,
other telecommunication service revenue
Internet and data revenue,
other telecommunication service revenue
Internet and data revenue,
other telecommunication service revenue,
interconnection revenue
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
a. Nature of relationships and accounts/transactions with related parties (continued)
Details of the nature of relationships and accounts/transactions with significant related parties are
as follows (continued):
Related parties
Nature of
relationships parties
Badan Penyelenggara
Jaminan Sosial (“BPJS”)
PT Asuransi Jasa Indonesia
Entity under common control
Entity under common control
(“Jasindo”)
INTI
LEN
State-owned banks
BNI
Entity under common control
Entity under common control
Entity under common control
Entity under common control
Bank Mandiri
Entity under common control
BRI
BTN
Entity under common control
Entity under common control
PT Bank Syariah Mandiri
Entity under common control
(“BSM”)
PT Bank BRI Syariah
(“BRI Syariah”)
Bahana
CSM
Indonusa
Yakes
Entity under common control
Entity under common control
Associated company
Associated company
Entity under significant
influence
Koperasi Pegawai Telkom
Entity under significant
(“Kopegtel”)
influence
PT Sandhy Putra Makmur
Entity under significant
(“SPM”)
influence
Koperasi Pegawai Telkomsel
Entity under significant
(“Kisel)
influence
PT Graha Informatika
Nusantara (“Gratika”)
Entity under significant
influence
PT Pembangunan Telekomunikasi
Entity under significant
Nature of accounts/transactions
Internet and data revenue,
other telecommunication service revenue
Satellite insurance expense, vehicle insurance
expense
Purchase of property and equipment
Purchase of property and equipment
Finance income and finance costs
Internet and data revenue,
other telecommunication service revenue,
finance income and finance costs
Internet and data revenue,
other telecommunication service revenue,
finance income and finance costs
Internet and data revenue,
other telecommunication service revenue,
finance income and finance costs
Internet and data revenue,
other telecommunication service revenue,
finance income and finance costs
Internet and data revenue,
other telecommunication service revenue,
and finance costs
Internet and data revenue,
other telecommunication service revenue,
and finance costs
Available-for-sale financial assets, bonds
and notes
Satelite transponder usage revenue, network
revenue and transmission lease expenses
Network revenue and data communication
expense
Medical expenses
Purchase of property and equipment,
construction and installation services,
leases of buildings, leases of vehicles,
purchases of vehicles,
purchases of materials and construction
services, maintenance and cleaning service
expenses and RSA revenues
Leases of buildings, leases of vehicles,
purchase of materials and construction
services, maintenance and cleaning
service expenses
Internet and data revenue, other
telecommunication service revenue,
leases of vehicles, printing and distribution
of customer bills expenses, collection fee, and
other services fee, distribution of SIM cards
and pulse
reload voucher, purchase of
property
and equipment
Interconnection revenue, installation expense,
maintenance expense, and purchase of
property and equipment
Purchase of property and equipment
Indonesia (“Bangtelindo”)
Directors and commissioners
influence
Key management personnel
Honorarium and facilities
106
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties
The following are significant transactions with related parties:
REVENUES
Majority Stockholder
Government
Entities under common control
Indosat
BRI
Bank Mandiri
BNI
Pertamina
KAI
PT Pegadaian
Lintasarta
PT Garuda Indonesia
ICON Plus
BTN
BPJS
Sub-total
Entities under significant influence
Kisel
Gratika
Sub-total
Associated companies
Indonusa
CSM
Sub-total
Others
Total
EXPENSES
Entities under common control
Indosat
PLN
Jasindo
Sub-total
Entities under significant influence
Kisel
Kopegtel
Yakes
Sub-total
Others
Total
2015
2014
Am ount
% of
total revenues
Am ount
% of
total revenues
206
1,020
188
151
126
99
90
89
82
77
63
41
35
2,061
3,869
416
4,285
60
34
94
248
6,894
0.20
1.00
0.18
0.15
0.12
0.10
0.09
0.09
0.08
0.08
0.06
0.04
0.03
2.02
3.78
0.41
4.19
0.06
0.03
0.09
0.24
6.74
168
1,015
277
133
137
69
100
306
81
52
24
30
28
2,252
3,076
389
3,465
74
37
111
320
6,316
0.19
1.13
0.31
0.15
0.15
0.08
0.11
0.34
0.09
0.06
0.03
0.03
0.03
2.51
3.43
0.43
3.86
0.08
0.04
0.12
0.36
7.04
2015
2014
Am ount
% of
total expenses
Am ount
% of
total expenses
977
738
256
1,971
748
460
174
1,382
72
1.39
1.05
0.37
2.81
1.07
0.66
0.25
1.98
0.10
3,425
4.89
107
937
721
291
1.55
1.19
0.48
1,949
3.22
922
550
157
1,629
140
3,718
1.52
0.91
0.26
2.69
0.23
6.14
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
FINANCE INCOME
Majority stockholder
Goverment
Entity under common control
State-owned banks
Others
Total
FINANCE COSTS
Majority stockholder
Government
Entity under common control
State-owned banks
Total
PURCHASE OF PROPERTY
AND EQUIPMENT (Note 10)
Entities under common control
INTI
LEN
Sub-total
Entities under significant influence
Kopegtel
Bangtelindo
SPM
Kisel
Gratika
Sub-total
Others
Total
2015
2014
% of total
% of total
9
830
6
845
0.64
58.99
0.43
60.06
13
750
3
766
1.05
60.58
0.24
61.87
2015
2014
Am ount
% of total
finance costs
Am ount
% of total
finance costs
76
3.06
1,061
1,137
42.77
45.83
85
830
915
4.69
45.76
50.45
2015
2014
% of total
property and
equipment
purchased
Am ount
% of total
property and
equipment
purchased
Am ount
394
72
466
131
86
62
73
45
397
12
875
1.49
0.27
1.76
0.50
0.33
0.23
0.28
0.17
1.51
0.05
3.32
429
40
469
109
-
29
-
33
171
-
640
1.74
0.16
1.90
0.44
-
0.12
-
0.13
0.69
-
2.59
108
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
Presented below are balances of accounts with related parties:
a. Cash and cash equivalents (Note 4)
b. Other current financial assets (Note 5)
c. Trade receivables - net (Note 6)
d. Advances and prepaid expenses (Note 8)
e. Advances and other non-current
assets (Note 11)
f. Trade payables (Note 13)
Entities under common control
INTI
Indosat
State-owned enterprises
Sub-total
Entities under significant influence
Kopegtel
Yakes
Bangtelindo
SPM
Sub-total
Others
Total
g. Accrued expenses (Note 14)
Majority stockholder
Government
Entities under common control
State-owned enterprises
State-owned banks
Subtotal
Entity under significant influence
Kisel
Total
2015
2014
Am ount
% of
total assets
Am ount
% of
total assets
15,028
2,500
1,104
15
6
9.04
1.50
0.66
0.01
0.00
10,464
2,406
873
24
18
7.38
1.70
0.62
0.02
0.01
2015
2014
Am ount
% of total
liabilities
Am ount
% of total
liabilities
0.61
0.22
0.13
0.96
0.13
0.03
0.03
0.02
0.21
1.68
2.85
0.02
0.16
0.09
0.25
0.26
0.53
323
146
-
469
55
46
7
11
119
309
897
16
84
84
168
191
375
0.58
0.26
-
0.84
0.10
0.08
0.01
0.02
0.21
0.55
1.60
0.03
0.15
0.15
0.30
0.34
0.67
443
160
98
701
97
19
19
16
151
1,223
2,075
16
114
68
182
188
386
109
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
h. Advances from customers and suppliers
Majority stockholder
Government
i. Short-term bank loans (Note 16)
Entities under common control
BRI
BNI
Bank Syariah Mandiri (“BSM”)
Total
j. Two-step loans (Note 18)
Majority stockholder
Government
k. Long-term bank loans - net (Note 20)
Entities under common control
BNI
BRI
Bank Mandiri
Total
2015
2014
Am ount
% of total
liabilities
Am ount
% of total
liabilities
19
0.03
57
25
15
97
0.08
0.03
0.02
0.13
19
57
-
15
72
0.03
0.10
-
0.03
0.13
1,520
2.09
1,615
2.89
5,592
2,633
2,564
10,789
7.69
3.62
3.52
14.83
2,975
4,357
2,181
9,513
5.33
7.80
3.91
17.04
c. Significant agreements with related parties
i. The Government
The Company obtained two-step loans from the Government (Note 18).
ii. Indosat
The Company has an agreement with Indosat to provide international telecommunications
services to the public.
The Company has also entered into an interconnection agreement between the Company’s
fixed line network (Public Switched Telephone Network or “PSTN”) and Indosat’s GSM mobile
cellular telecommunications network in connection with the implementation of Indosat
Multimedia Mobile services and the settlement of related interconnection rights and obligations.
The Company also has an agreement with Indosat for the interconnection of Indosat's GSM
mobile cellular telecommunications network with the Company's PSTN, which enable each
party’s customers to make domestic calls between Indosat’s GSM mobile network and the
Company’s fixed line network, as well as allowing Indosat’s mobile customers to access the
Company’s IDD service by dialing “007”.
110
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36.
RELATED PARTY TRANSACTIONS (continued)
c. Significant agreements with related parties (continued)
ii. Indosat (continued)
The Company has been handling customer billings and collections for Indosat. Indosat is
gradually taking over the activities and performing its own direct billing and collection. The
Company has received compensation from Indosat computed at 1% of the collections made by
the Company starting from January 1, 1995, as well as the billing process expenses which are
fixed at a certain amount per record. On December 11, 2008, the Company and Indosat
agreed to implement IDD service charge tariff which already took into account the
compensation for billing and collection. The agreement is valid and effective starting from
January to December 2012, and can be applied until a new agreement becomes available.
On December 28, 2006, the Company and Indosat signed amendments on the interconnection
agreements for the fixed line networks (local, SLJJ and international) and mobile network for
the implementation of the cost-based tariff obligations under the MoCI Regulations No. 8/Year
2006. These amendments took effect starting on January 1, 2007.
Telkomsel also entered into an agreement with Indosat for the provision of international
telecommunications services to its GSM mobile cellular customers.
The Company provides leased lines to Indosat and subsidiaries, namely PT Indosat Mega
Media and Lintasarta. The leased lines can be used by these companies for telephone,
telegraph, data, telex, facsimile or other telecommunication services.
iii. Others
The Company has entered into agreements with CSM and Gratika for the utilization of the
Company's satellite transponders or frequency channels of communication satellite and leased
lines.
Kisel is a co-operative that was established by Telkomsel’s employees to engage in car rental
services, printing and distribution of customer bills, collection and other services principally for
the benefit of Telkomsel. Telkomsel also has dealership agreements with Kisel for distribution
of SIM cards and pulse reload vouchers.
On June 27, 2014, the Company signed a Conditional Business Transfer Agreement with
Telkomsel for the transfer of its Flexi business to Telkomsel (Note 39c.ii)
d. Key management personnel remuneration
Key management personnels consist of the Boards of Commissioners and Directors of the
Company and its subsidiaries.
The Group provides remuneration in the form of honorarium and facilities to support the
operational duties of the Board of Commissioners and short-term employment benefits in the form
of salaries and facilities to support the operational duties of the Board of Directors. The total of
such benefits is as follows:
2015
2014
Amount
% of
total expenses
Amount
% of
total expenses
Board of Directors
Board of Commissioners
583
177
0.84%
0.25%
563
155
0.92%
0.25%
111
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. OPERATING SEGMENT
The Group has four main operating segments, namely corporate, home, personal and others. The
corporate segment provides telecommunications services, including interconnection, leased lines,
satellite, VSAT, contact center, broadband access, information technology services, data and internet
services to companies and institutions. The home segment provides fixed wireline telecommunications
services, pay TV, data and internet services to home customers. The personal segment provides
mobile cellular and fixed wireless telecommunications services to individual customers. Operating
segments that are not monitored separately by the Chief Operation Decision Maker are presented as
"Others", which provides building management services.
No operating segments have been aggregated to form the operating segments of personal, home and
others, while corporate operating segment is aggregated from business, enterprise, wholesale and
international operating segments since they have the similar economic characteristics and similar in
other qualitative criteria such as providing similar network services and serving corporate customers.
Management monitors the operating results of the 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 and is measured consistently with operating profit or loss in the
consolidated financial statements.
However, the financing activities and income taxes are not separately evaluated and allocated to
operating segment.
Segment revenues and expenses include transactions between operating segments and are
accounted at market prices.
Segment results
Revenues
External revenues
Inter-segment revenues
Total segment revenues
Expenses
External expenses
Inter-segment expenses
Corporate
Home
Personal
Others
Total before
elimination Elimination consolidated
Total
2015
21,072
14,347
35,419
7,319
4,352
11,671
73,766
2,365
76,131
313
1,943
102,470
23,007
-
(23,007)
102,470
-
2,256
125,477
(23,007)
102,470
(70,052)
-
(70,052)
32,418
(26,401)
(18,534)
(1,010)
(20,239 )
(8,066 )
(6,705)
(4,706)
(41,130)
(10,173)
(1,978)
(62)
(70,052)
(23,007)
-
23,007
Total segment expenses
(28,305 )
(11,411)
(51,303)
(2,040)
(93,059)
23,007
Segment results
7,114
260
24,828
216
32,418
-
Other information
Capital expenditures
(10,007)
(4,172)
(11,321)
(901)
(26,401)
Depreciation and amortization
(2,708 )
(1,203)
(14,531)
(92)
(18,534)
Provision for impairment of receivables
(560 )
(297)
(148)
(5)
(1,010)
-
-
-
112
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. OPERATING SEGMENT (continued)
Segment results
Revenues
External revenues
Inter-segment revenues
Total segment revenues
Expenses
External expenses
Inter-segment expenses
Corporate
Home
Personal
Others
Total before
elimination Elimination consolidated
Total
2014 (As restated)
18,763
10,652
29,415
6,682
2,667
9,349
64,000
2,686
66,686
251
1,632
89,696
17,637
-
(17,637)
1,883
107,333
(17,637)
89,696
-
89,696
(16,102 )
(6,561 )
(5,473)
(3,487)
(37,260)
(7,526)
(1,655)
(63)
(60,490)
(17,637)
-
17,637
(60,490)
-
Total segment expenses
(22,663 )
(8,960)
(44,786)
(1,718)
(78,127)
17,637
(60,490)
Segment results
6,752
389
21,900
165
29,206
-
29,206
Other information
Capital expenditures
(7,312)
(3,529)
(13,200)
(620)
(24,661)
Depreciation and amortization
(2,699 )
(1,495)
(12,071)
(61)
(16,326)
Impairment of assets
-
-
Provision for impairment of receivables
(184 )
(467)
(805)
(133)
-
-
(805)
(784)
-
-
-
-
(24,661)
(16,326)
(805)
(784)
Geographic information:
External revenues
Indonesia
Foreign countries
Total
2015
2014
100,456
2,014
87,896
1,800
102,470
89,696
The revenue information above is based on the location of the customers.
Non-current operating assets
Indonesia
Foreign countries
Total
2015
2014
105,361
1,395
96,127
1,145
106,756
97,272
Non-current operating assets for this purpose consist of property and equipment and intangible
assets.
113
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
38. TELECOMMUNICATIONS SERVICE TARIFFS
Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating
telecommunications network and/or services are determined by providers based on the tariff type,
structure and with respect to the price cap formula set by the Government.
a. Fixed line telephone tariffs
The Government has issued a new adjustment tariff formula which is stipulated in the Decree
No. 15/PER/M.KOMINFO/4/2008 dated April 30, 2008 of the Ministry of Communication and
Information (“MoCI”) concerning “Mechanism to Determine Tariff of Basic Telephony Services
Connected through Fixed Line Network”.
Under the Decree, tariff structure for basic telephony services connected through fixed line
network consists of the following:
• Activation fee
• Monthly subscription charges
• Usage charges
• Additional facilities fee.
b. Mobile cellular telephone tariffs
On April 7, 2008, the MoCI issued Decree No. 09/PER/M.KOMINFO/04/2008 regarding
“Mechanism to Determine Tariff of Telecommunication Services Connected through Mobile
Cellular Network” which provides guidelines to determine cellular tariffs with a formula consisting
of network element cost and retail services activity cost. This Decree replaced the previous
Decree
No. 12/PER/M.KOMINFO/02/2006.
Under MoCI Decree No. 09/PER/M.KOMINFO/04/2008 dated April 7, 2008, the cellular tariffs of
operating telecommunication services connected through mobile cellular network consist of the
following:
• Basic telephony services tariff
• Roaming tariff, and/or
• Multimedia services tariff,
with the following traffic structure:
• Activation fee
• Monthly subscription charges
• Usage charges
• Additional facilities fee.
114
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
38. TELECOMMUNICATIONS SERVICE TARIFFS (continued)
c.
Interconnection tariffs
The Indonesian Telecommunication Regulatory Body (“ITRB”), in its letter No. 262/BRTI/XII/2011
dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost
basis with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all
telecommunication provider operators.
Based on letter No.118/KOMINFO/DJPPI/PI.02.04/01/2014 dated January 30, 2014 of the
Director General of Post and Informatics, the Director General of Post and Informatics decided to
implement new interconnection tariff effective from February 1, 2014 until December 31, 2016,
subject to evaluation on an annual basis. Pursuant to the Director General of Post and Informatics
letter,
the Company and Telkomsel are required to submit the Reference Interconnection Offer (“RIO”)
proposal to ITRB to be evaluated.
ITRB
Subsequently,
letters No. 60/BRTI/III/2014 dated March 10, 2014 and
No. 125/BRTI/IV/2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of
RIO regarding the interconnection tariff. Based on the letter, ITRB also approved the changes to
the SMS interconnection tariff to Rp24 per SMS.
its
in
d. Network lease tariffs
Through MoCI Decree No. 03/PER/M.KOMINFO/1/2007 dated January 26, 2007 concerning
“Network Lease”, the Government regulated the form, type, tariff structure, and tariff formula for
services of network lease. Pursuant to the MoCI Decree, the Director General of Post and
Telecommunication issued its Letter No. 115 Year 2008 dated March 24, 2008 which stated “The
Agreement on Network Lease Service Type Document, Network Lease Service Tariff, Available
Capacity of Network Lease Service, Quality of Network Lease Service, and Provision Procedure of
Network Lease Service in 2008 Owned by Dominant Network Lease Service Provider”, in
conformity with the Company’s proposal.
e. Tariff for other services
The tariffs for satellite lease, telephony services, and other multimedia are determined by the
service provider by taking into account the expenditures and market price. The Government only
determines the tariff formula for basic telephony services. There is no stipulation for the tariff of
other services.
115
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS
a. Capital expenditures
As of December 31, 2015, capital expenditures committed under the contractual arrangements,
principally relating to procurement and installation of data, internet and information technology,
cellular, switching equipment, transmission equipment and cable network are as follows:
Currencies
Rupiah
U.S. dollar
Euro
Total
Amounts in
foreign currencies
(in millions)
Equivalent
in Rupiah
-
320
0.21
10,648
4,410
3
15,061
The above balance includes the following significant agreements:
(i) The Company
Contracting parties
Initial date of
agreement
Significant provisions of the
agreement
The Company and PT Industri Telekomunikasi
Indonesia
December 30, 2010
The Company and PT LEN Industri (Persero)
March 29, 2012
The Company and JF DJAFA Consortium
November 14, 2012
The Company and ASN-PT Lintas Consortium
May 6, 2013
The Company and NEC Corp-PT NEC Indonesia
Consortium
The Company and PT Cisco Technologies
Indonesia
The Company and PT NEC Indonesia
May 28, 2013
November 14, 2013
November 29, 2013
The Company and PT Huawei Tech Investment
December 6, 2013
Procurement and installation agreement
for the modernization of copper cable
network through optimalization of asset
copper cable network Trade In/Trade Off
method
Procurement and installation agreement
for the modernization of copper cable
network through optimalization of asset
copper cable network Trade In/Trade Off
method
Procurement and installation agreement
of Outside Plant Fiber To The Home
(OSP FTTH)
Procurement and installation agreement
of Sulawesi Maluku Papua Cable System
(SMPCS) project
Procurement and installation of SMPCS
Package-2
Procurement and installation agreement
of WIFI CISCO
Procurement and installation of IP Radio
equipment agreement
for Backhaul
Node-B Telkomsel Package-3 Platform
NEC
Procurement and installation of IP Radio
equipment agreement
for Backhaul
Node-B Telkomsel Package-2 Platform
Huawei
116
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
(i) The Company (continued)
Contracting parties
The Company and PT Ericsson Indonesia - PT
Infracell Nusatama
Initial date of
agreement
December 23, 2013
The Company and Thales Alenia Space France
July 14, 2014
The Company and PT Huawei Tech Investment
October 23, 2014
The Company, Telkom Malaysia Berhad, Telin,
Alcatel-Lucent Subm arine Networks and NEC
Corporation
January 30, 2015
The Company and PT Huawei Tech Investment
August 28, 2015
The Company and PT ZTE Indonesia
August 28, 2015
The Company and PT Lintas Teknologi Indonesia
November 17, 2015
The Company and PT Datacomm Diangraha
November 20, 2015
The Company and PT Sisindokom Lintasbuana
November 23, 2015
The Company and PT Huawei Tech Investment
December 1, 2015
The Company and PT Mastersystem Infotam a
December 3, 2015
The Company and PT ZTE Indonesia
December 21, 2015
The Company and PT Sarana Global Indonesia
December 31, 2015
Significant provisions of the
agreement
Procurement and installation of IP Radio
Equipment agreement
for Backhaul
Node-B Telkomsel Package-1 Platform
Ericsson
Procurement of Telkom-3 Substitution
(T3S) Satellite System
Procurement and installation of Access
Point Indonesia WIFI Platform Huawei
of
and
Procurement
Southeast Asia – Middle East – Western
Europe 5 Cable System (SEA – ME - WE
5)
installation
Procurement and installation agreement
of MSAN modernization for acceleration
of the disposal of copper wire - Platform
Huawei
Procurement and installation agreement
of MSAN modernization for acceleration
of the disposal of copper wire - Platform
ZTE
Procurement and installation agreement
for DWDM Platform Alcatel - Lucent
(ALU)
Procurement and installation agreement
for Metro Ethernet Platform ALU
Procurement and installation agreement
for PE-VPN CISCO
Procurement and installation agreement
for Metro Ethernet Platform Huawei
Procurement and installation agreement
for IP Backbone System expansion
Procurement and installation agreement
for
capacity
expansion
Procurement and installation agreement
of Sistem Komunikasi Kabel Laut
(“SKKL”) Sibolga-Nias, Batam-Tanjung
Balai Karimun,
Larantuka-Kabalahi-
Atambua
IPTV Platform ZTE
117
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
(ii) Telkomsel
Significant provisions of the agreement
The combined 2G and 3G CS Core
Network Rollout Agreements
and
and
procurement
procurement
Technical Service Agreement (TSA) for
combined 2G and 3G CS Core Network
2G BSS and 3G UTRAN Rollout
agreement for the provision of 2G GSM
BSS and 3G UMTS Radio Access
Network
Maintenance
of
equipment and related service agreement
for Next Generation Convergence IP RAN
Rollout and Technical Support
Maintenance
of
equipment and related service agreement
for Next Generation Convergence Core
Transport Rollout and Technical Support
Online Charging System (“OCS”) and
Service Control Points (“SCP”) System
Solution Development agreement
Technical Support Agreem ent to provide
technical support services for the OCS
and SCP
Development and Rollout agreement for
Customer Relationship Management and
Contact Center Solutions
Technical Support Agreem ent
the
procurement of Gateway GPRS Support
Node (“GGSN”) Service Complex
Development and procurement of OSDSS
Solution agreement
Procurement of GGSN Service Complex
Rollout agreement
for
Contracting parties
Telkomsel, PT Ericsson Indonesia, Ericsson AB,
PT Nokia Siemens Networks, NSN Oy and Nokia
Siemens Network GmbH & Co. KG
Telkomsel, PT Ericsson Indonesia and PT Nokia
Siemens Networks
Telkomsel, PT Ericsson Indonesia, Ericsson AB,
PT Nokia Siemens Networks, NSN Oy, Huawei
International Pte. Ltd., PT Huawei and PT ZTE
Indonesia
Telkomsel, PT Packet Systems Indonesia and
PT Huawei
Initial date of
agreement
April 17, 2008
April 17, 2008
March and June
2009
February 3, 2010
Telkomsel, PT Dimension Data Indonesia and
PT Huawei
February 3, 2010
Telkomsel, Amdocs Software Solutions Limited
Liability Company and PT Application Solutions
February 8, 2010
Telkomsel and PT Application Solutions
February 8, 2010
Telkomsel, Amdocs Software Solutions Limited
Liability Company and PT Application Solutions
July 5, 2011
Telkomsel and PT Huawei
March 25, 2013
Telkomsel and Wipro Limited, Wipro Singapore
Pte. Ltd. and PT WT Indonesia
Telkomsel and PT Ericsson Indonesia
April 23, 2013
October 22, 2013
118
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
b. Borrowings and other credit facilities
(i) As of December 31, 2015, the Company has bank guarantee facilities for tender bond,
performance bond, maintenance bond, deposit guarantee and advance payment bond for
various projects of the Company, as follows:
Lenders
BRI
BNI
Total
facility
Maturity
Currency
350
March 14, 2016
250
March 31, 2016
Rp
US$
Rp
US$
Rp
US$
Bank Mandiri
300
December 23, 2016
Total
900
Facility utilized
Original
currency
(in millions)
Rupiah
equivalent
-
0
-
0
-
0
79
1
58
1
225
0
364
(ii) Telkomsel has US$3 million bond and bank guarantee and standby letter of credit facilities
with SCB, Jakarta. The facilities expire on July 31, 2016. Under these facilities, as of
December 31, 2015, Telkomsel has issued a bank guarantee of Rp20 billion (equivalent to
US$1.4 million) for a 3G performance bond (Note 39c.i). The bank guarantee is valid until
March 24, 2016.
Telkomsel has a Rp500 billion bank guarantee facility with BRI. The facility will expire on
March 25, 2016. Under this facility, as of December 31, 2015, Telkomsel has issued a bank
guarantee of Rp317 billion (equivalent to US$22 million) as payment commitment guarantee
for annual right of usage fee valid until March 31, 2016 and Rp20 billion (equivalent to
US$1.4 million) for a 3G performance guarantee.
Telkomsel has a Rp150 billion bank guarantee facility with BCA. The facility will expire
on April 15, 2016.
Telkomsel has also a Rp100 billion bank guarantee facility with BNI. The facility will expire
on December 11, 2016. Telkomsel uses this facility to replace the time deposit required as
guaranty for the USO program amounting to Rp53 billion (Note 39c.iv).
(iii) TII has a US$15 million bank guarantee from Bank Mandiri. The facility expires on
December 18, 2016. The outstanding bank guarantee facility as of December 31, 2015
amounting to US$11 million.
c. Others
(i) 3G license
to
reference
Letters No.
the Decision
07/PER/M.KOMINFO/2/2006,
With
No. 268/KEP/M.KOMINFO/9/2009 and No. 191 year 2013 of the MoCI (Note 2i), Telkomsel is
required, among other things, to:
1. Pay an annual BHP fee which is calculated based on a certain formula over the license
term (10 years) as set forth in the Decision Letters. The BHP is payable upon receipt of
the notification letter (“Surat Pemberitahuan Pembayaran”) from the DGPI. The BHP fee is
payable annually up to the expiry date of the license.
2. Provide roaming access for the existing other 3G operators.
3. Contribute to USO development.
119
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(i) 3G license (continued)
reference
07/PER/M.KOMINFO/2/2006,
With
No. 268/KEP/M.KOMINFO/9/2009 and No. 191 year 2013 of the MoCI (Note 2i), Telkomsel is
required, among other things, to: (continued)
the Decision
Letters No.
to
4. Construct a 3G network which covers at least 14 provinces by the sixth year of holding the
5.
3G license.
Issue a performance bond every year amounting to Rp20 billion or 5% of the annual fee to
be paid for the subsequent year, whichever is higher.
(ii) Radio Frequency Usage
Based on the Decree No. 76 dated December 15, 2010 of the Government of the Republic of
Indonesia, which amended Decree No. 7 dated January 16, 2009, the annual frequency
usage fees for bandwidths of 800 Megahertz (“MHz”), 900 MHz and 1800 MHz are
determined using a formula set forth in the Decree. The Decree is applicable for 5 years
unless further amended.
As an implementation of the Decree above, the Company and Telkomsel paid the first,
second, third and forth year annual frequency usage fees in 2010, 2011, 2012 and 2013,
respectively.
In order to maximize its business opportunities from the group synergy, the Company
restructured its fixed wireless business unit by terminating the respective fixed wireless
telecommunication network services and transferring the fixed wireless business and
subscribers to Telkomsel. On June 27, 2014, the Company signed a Conditional Business
Transfer Agreement with Telkomsel to transfer such business and subscribers to Telkomsel
(Notes 5,10.b, 36). Telkomsel has paid through an escrow account amounting to Rp2,162
billion for this restructuring business and presented as Other Current Financial Assets (Note
5). As the date of approval and authorization of the consolidated financial statements, the
restructuring business is still in process (Note 5).
The Company recorded a restructuring provision of Rp208 billion as of December 31, 2014.
The provision relates to the benefits provided in “Upgrade Telkomflexi” program that was
introduced to encourage Telkom Flexi subscribers to migrate to Telkomsel services. The
program was announced to public on October 3, 2014. As the date of approval and
authorization of the consolidated financial statements, the migration of customers had been
accomplished and all the services rendered has been ceased.
Based on Decision Letter No. 934 dated September 26, 2014, the MoCI approved the transfer
of the Company’s frequency usage license on radio frequency spectrum of 800 MHz,
specifically on spectrum of 880-887.5 MHz paired with 925-932.5 MHz, to Telkomsel.
Telkomsel can use the radio frequency spectrum since the decision letter was issued.
During the transition period, the Company is still able to use the radio frequency spectrum of
880-887.5 MHz paired with 925-932.5 MHz until December 14, 2015.
Based on Decision Letters No. 940 dated September 26, 2014, MoCI determined that the fifth
year (Y5), 2014, annual frequency usage fee of Telkomsel was Rp2,198 billion. The fee
includes annual frequency usage fee transferred from Company to Telkomsel and was paid in
December 2014.
Based on Decision letter No. 983 issued in 2015, the MoCI determined that the sixth year (Y6)
2015, annual frequency usage fee of Telkomsel was Rp 2,398 billion. The fee was paid in
December 2015.
120
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(ii) Radio Frequency Usage (continued)
On July 6, 2015, Telkomsel received Decision Letter No.644 Year 2015 dated June 30, 2015,
of the MoCI, which replaced Decision Letter No.42 Year 2014 dated January 29, 2014, the
MoCI granted Telkomsel the rights to provide:
(i) Mobile telecommunication services with radio frequency bandwidth in the 800 MHz, 900
MHz and 1800 MHz bands;
(ii) Mobile telecommunication services IMT-2000 with radio frequency bandwidth in the
2.1 GHz bands (3G); and
(iii) Basic telecommunication services.
(iii) Future minimum lease payments under operating lease
The Group entered into non-cancelable lease agreements with both third and related parties.
The lease agreements cover leased lines, telecommunication equipment and land and
building with terms ranging from 1 to 10 years and with expiry dates between 2016 and 2025.
Periods maybe extended based on the agreement by both parties.
Future minimum
lease payments under
the operating
lease agreements as of
December 31, 2015 are as follows:
As lessee
As lessor
Total
Less than
1 year
1-5
years
More than
5 years
42,464
2,485
4,948
774
19,230
1,711
18,286
-
In connection with the restructuring of its fixed wireless business unit (Note 39c.ii), the
Company undertakes a negotiation to early terminate its operating lease agreements, and has
recorded provisions for early termination amounted Rp666 billion which is presented as “Other
expense”. The future minimum lease payments above includes lease agreements with
telecommunication tower providers, which were used for its fixed wireless business unit.
(iv) USO
forth
the USO program and
the basic policies underlying
The MoCI issued Regulation No. 15/PER/M.KOMINFO/9/2005 dated September 30, 2005,
which sets
requires
telecommunications operators in Indonesia to contribute 0.75% of their gross revenues (with
due consideration for bad debts and interconnection charges) for USO development. Based
on
the Government’s Decree No. 7/2009 dated January 16, 2009 and Decree
No.05/PER/M.KOMINFO/2/2007 dated February 28, 2007, the contribution was changed to
1.25% of gross revenues, net of bad debts and/or interconnection charges and/or connection
charges. Subsequently, in December 2012, Decree No. 05/PER/M.KOMINFO/2/2007 was
replaced by Decree No. 45 year 2012 of the MoCi which was effective from January 22, 2013.
The latest Decree stipulates, among other things, the exclusion of certain revenues that are
not considered as part of gross revenues as a basis to calculate the USO charged, and
changed the payment period which was previously on a quarterly basis to become quarterly or
semi-annually.
121
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(iv) USO (continued)
Based on MoCI Decree No. 32/PER/M.KOMINFO/10/2008 dated October 10, 2008 (as
amended by Decree No. 03/PER/M.KOMINFO/2/2010 dated February 1, 2010) which
replaced MoCI Decree No. 11/PER/M.KOMINFO/04/2007 dated April 13, 2007 and MoCI
Decree No. 38/PER/M.KOMINFO/9/2007 dated September 20, 2007, it is stipulated that,
in rural areas
among others,
(USO Program),
through a selection process by Balai
Telekomunikasi dan Informatika Pedesaan (“BTIP”) which was established based on MoCI
Decree No. 35/PER/M.KOMINFO/11/2006 dated November 30, 2006. Subsequently, based
on Decree No. 18/PER/M.KOMINFO/11/2010 dated November 19, 2010 of MoCI, BTIP was
changed to Balai Penyedia dan Pengelola Pembiayaan Telekomunikasi dan Informatika
(“BPPPTI”).
telecommunication access and services
in providing
the provider
is determined
a. The Company
On March 12, 2010, the Company was selected in a tender by the Government through
BTIP to provide internet access service centers for USO sub-districts for a total amount of
Rp322 billion, covering Nanggroe Aceh Darussalam, North Sumatera, North Sulawesi,
Gorontalo, Central Sulawesi, West Sulawesi, South Sulawesi and South East Sulawesi.
On December 23, 2010, the Company was selected in a tender by the Government
through BTIP to provide mobile internet access service centers for USO sub-districts for a
total amount of Rp528 billion, covering Jambi, Riau, Kepulauan Riau, North Sulawesi,
Central Sulawesi, Gorontalo, West Sulawesi, South East Sulawesi, Central Kalimantan,
South Sulawesi, Papua and West Irian Jaya.
In 2014, the program was ceased. On September 8, 2015, the Company filed an
arbitration claim to the Indonesia National Board of Arbitration (“BANI”) for the settlement
of the outstanding receivables of USO-PLIK and USO-MPLIK. As of the date of approval
and authorization for the issuance of the consolidated financial statements, the arbitration
claim is still in process.
b. Telkomsel
On January 16 and 23, 2009, Telkomsel was selected in a tender by the Government
through BTIP to provide telecommunication access and services in rural areas
(USO Program) for a total amount of Rp1.66 trillion, covering all Indonesian territories
except Sulawesi, Maluku and Papua. Accordingly, Telkomsel obtain local fixed-line
licenses and the right to use radio frequency in the 2,390 MHz - 2,400 MHz bandwith.
Subsequently, in 2010 and 2011, the agreements with BTIP were amended, which
amendments cover, among other things, changing the price to Rp1.76 trillion and
changing the term of payment from quarterly to monthly or quarterly.
In January 2010, the MoCI granted Telkomsel operating licenses to provide local fixed-line
services under the USO program.
On December 27, 2011, Telkomsel (on behalf of Konsorsium Telkomsel, a consortium
which was established with Dayamitra on December 9, 2011) was selected by BPPPTI as
a provider of the USO Program in the border areas for all packages (package 1 to
package 13) with a total price of Rp830 billion. On such date, Telkomsel was also
selected by BPPPTI as a provider of the USO Program (upgrading) of “Desa Pinter” or
“Desa Punya Internet” for 1, 2 and 3 packages with a total price of Rp261 billion.
122
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(iv) USO (continued)
b. Telkomsel (continued)
On March 31, 2014, the USO program for packages 1, 2, 3, 6 and 7 ceased. As of
September 18, 2014, Telkomsel filed an arbitration claim to BANI for the settlement of the
outstanding receivable from BPPPTI. On October 23, 2015, BANI decided that Telkomsel
should pay the outstanding receivables from those USO program to BPPPTI amounting to
Rp94.2 billion. Telkomsel accepted the decision and paid the balance in December 2015.
For the years ended December 31, 2015 and 2014, the Company and Telkomsel recognized
the following amounts:
2015
2014
Revenues
Construction
Operation of telecommunication service center
Profits (Losses)
Construction
Operation of telecommunication service center
-
-
-
(396)
1
180
0
(139)
As of December 31, 2015 and 2014, the Company’s and Telkomsel’s net carrying amount
of trade receivables from the USO programs which are measured at amortized cost using
the effective interest rate method amounted to Rp179 billion and Rp588 billion, respectively
(Note 6).
40. CONTINGENCIES
In the ordinary course of business, the Group has been named as defendants in various legal actions
in relation with land disputes, monopolistic practice and unfair business competition and SMS cartel
practices. Based on management's estimate of the probable outcomes of these matters, the Group
has recognized provision for losses amounting to Rp25 billion as of December 31, 2015.
a. The Company, Telkomsel and seven other local operators are being investigated by The
Commission for the Supervision of Business Competition (“Komisi Pengawasan Persaingan
Usaha” or “KPPU”) for allegations of SMS cartel practices. As a result of the investigations on
June 17, 2008, KPPU found that the Company, Telkomsel and certain other local operators had
violated Law No. 5 year 1999 article 5 and charged the Company and Telkomsel in the amounts of
Rp18 billion and Rp25 billion, respectively.
Management believes that there are no such cartel practices that led to a breach of prevailing
regulations. Accordingly, the Company and Telkomsel filed an appeal with the Bandung District
Court and South Jakarta District Court on July 14, 2008 and July 11, 2008, respectively.
Due to the filing of case by seven operators in various courts, the KPPU subsequently requested
the Supreme Court (SC) to consolidate the cases into the Central Jakarta District Court. Based on
the SC’s decision letter dated April 12, 2011, the SC appointed the Central Jakarta District Court
to investigate and resolve the case. On May 27, 2015 Central Jakarta District Court decided to
that the Company, Telkomsel and seven other local operators win this case.
123
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
40. CONTINGENCIES (continued)
On July 23, 2015, KPPU filed an appeal to the SC regarding the case of SMS cartel practices.As
of the date of approval and authorization for the issuance of the consolidated financial statements,
there has not been any notification on the case from the SC.
b. The Company is a defendant in a case filed in Makassar District Court by Andi Jindar Pakki and
his affiliates over a land property at Jl. A.P. Pettarani. On May 8, 2013, the court pronounced its
verdict and ordered the Company to pay fair compensation or to vacate and surrender the
disputed land to the plaintiffs.
On May 20, 2013, the Company filed an appeal to the Makassar High Court. In December 2013,
the Makassar High Court pronounced its verdict that was favorable to the plaintiffs and the
Company filed an appeal to the Supreme Court.
On January 9, 2015, the Company received the SC Notice No. 226/Pdt.G/2012/PN.Mks. regarding
the case in which rejected the Company’s appeal. On February 5, 2015, the Company requested
for a judicial review of the case by the SC.
As of the date of approval and authorization for the issuance of the consolidated financial
statements, there has not been any notification on the case from the SC.
41. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
December 31, 2015
U.S. dollar
(in millions)
Japanese yen
(in millions)
Others*
(in millions)
Rupiah
equivalent
(in billions)
Assets
Cash and cash equivalents
Other current financial assets
Trade receivables
Related parties
Third parties
Other receivables
Advances and other non-current assets
494.19
30.37
1.69
104.19
0.40
3.88
11.37
-
-
-
-
-
10.34
1.02
-
1.18
0.10
-
Total assets
634.72
11.37
12.64
Liabilities
Trade payables
Related parties
Third parties
Other payables
Accrued expenses
Advances from customers and suppliers
Current maturities of long-term liabilities
Promissory notes
Long-term liabilities - net of current maturities
Total liabilities
Assets (Liabilities) - net
(0.42)
(202.04)
(22.26)
(34.45)
(0.48)
(12.04)
(1.99)
(187.48)
-
(10.73)
-
(25.45)
-
(767.90)
-
(6,143.18)
(461.16)
(6,947.26)
173.56
(6,935.89)
-
(2.39)
(1.65)
(0.18)
-
-
-
-
(4.22)
8.42
6,957
433
23
1,453
7
54
8,927
(6)
(2,819)
(330)
(481)
(7)
(254)
(28)
(3,290)
(7,215)
1,712
* Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by
Reuters prevailing at the end of the reporting period.
124
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
41. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (continued)
December 31, 2014
U.S. dollar
(in millions)
(As restated)
Japanese yen
(in millions)
Others*
(in millions)
Rupiah
equivalent
(in billions)
(As restated)
Assets
Cash and cash equivalents
Other current financial assets
Trade receivables
Related parties
Third parties
Other receivables
Advances and other non-current assets
364.47
15.50
2.05
85.00
0.39
4.06
8.45
-
-
-
-
-
15.59
-
-
2.83
0.11
0.05
Total assets
471.47
8.45
18.58
Liabilities
Trade payables
Related parties
Third parties
Other payables
Accrued expenses
Short-term bank loan
Advances from customers and suppliers
Current maturities of long-term liabilities
Promissory notes
Long-term liabilities - net of current maturities
Total liabilities
Assets (Liabilities) - net
(0.21)
(228.03)
(3.42)
(65.91)
(100.00)
(2.41)
(34.60)
(7.16)
(71.00)
-
(19.36)
-
(27.39)
-
-
(767.90)
-
(6,911.08)
(512.74)
(7,725.73)
(0.16)
(3.41)
(1.15)
(1.02)
-
(0.07)
-
-
-
(5.81)
(41.27 )
(7,717.28)
12.77
4,721
193
26
1,088
6
52
6,086
(5)
(2,878)
(57)
(836)
(1,244)
(31)
(510)
(88)
(1,597)
(7,246)
(1,160)
* Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by
Reuters prevailing at the end of the reporting period.
The Group’s activities expose them to a variety of financial risks, including the effects of changes in
debt and equity market prices, foreign currency exchange rates, and interest rates.
If the Group reports monetary assets and liabilities in foreign currencies as of December 31, 2015
using the exchange rates on February 26, 2016, the unrealized foreign exchange loss amounted to
Rp98 billion.
42. FINANCIAL RISK MANAGEMENT
1. Financial risk management
The Group’s activities expose it to a variety of financial risks such as market risks (including
foreign exchange risk and interest rate risk), credit risk and liquidity risk. Overall, the Group’s
financial risk management program is intended to minimize losses on the financial assets and
financial liabilities arising from fluctuation of foreign currency exchange rates and the fluctuation of
interest rates. Management has a written policy for foreign currency risk management mainly on
time deposit placements and hedging to cover foreign currency risk exposures for periods ranging
from 3 up to 12 months.
Financial risk management is carried out by the Corporate Finance unit under policies approved
by the Board of Directors. The Corporate Finance unit identifies, evaluates and hedges financial
risks.
125
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
42. FINANCIAL RISK MANAGEMENT (continued)
1. Financial risk management (continued)
a. Foreign exchange risk
The Group is exposed to foreign exchange risk on sales, purchases and borrowings that are
denominated in foreign currencies. The foreign currency denominated transactions are
primarily in U.S. dollars and Japanese yen. The Group’s exposures to other foreign exchange
rates are not material.
Increasing risks of foreign currency exchange rates on the obligations of the Group are
expected to be offset by the effects of the exchange rates on time deposits and receivables in
foreign currencies that are equal to at least 25% of the outstanding current foreign currency
liabilities.
The following table presents the Group’s financial assets and financial liabilities exposure to
foreign currency risk:
2015
2014
U.S. dollar
(in billions)
Japanese yen
(in billions)
U.S. dollar
(in billions)
(As restated)
Japanese yen
(in billions)
0.63
(0.46)
0.17
0.01
(6.95)
(6.94)
0.47
(0.51)
(0.04)
0.01
(7.73)
(7.72)
Financial assets
Financial liabilities
Net exposure
Sensitivity analysis
A strengthening of the U.S.dollar and Japanese yen, as indicated below, against the rupiah at
December 31, 2015 would have decreased equity and profit or loss by the amounts shown
below. This analysis is based on foreign currency exchange rate variances that the Group
considered to be reasonably possible at the reporting date. The analysis assumes that all
other variables in particular interest rates, remain constant.
Equity/profit (loss)
December 31, 2015
U.S. dollar (1% strengthening)
Japanese yen (5% strengthening)
23
(40)
A weakening of the U.S.dollar and Japanese yen against the rupiah at December 31, 2015
would have had an equal but opposite effect on the above currencies to the amounts shown
above, on the basis that all other variables remain constant.
b. Market price risk
The Group is exposed to changes in debt and equity market prices related to available-for-
sale investments carried at fair value. Gains and losses arising from changes in the fair value
of available-for-sale investments are recognized in equity.
The performance of the Group’s available-for-sale investments is monitored periodically,
together with a regular assessment of their relevance to the Group’s long-term strategic plans.
As of December 31, 2015, management considered the price risk for the Group’s available-
for-sale investments to be immaterial in terms of the possible impact on profit or loss and total
equity from a reasonably possible change in fair value.
126
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
42. FINANCIAL RISK MANAGEMENT (continued)
1. Financial risk management (continued)
c. Interest rate risk
Interest rate fluctuation is monitored to minimize any negative impact to financial performance.
Borrowings at variable interest rates expose the Group to interest rate risk (Notes 16, 17, 18,
19, and 20). To measure market risk pertaining to fluctuations in interest rates, the Group
primarily uses interest margin and maturity profile of the financial assets and liabilities based
on changing schedule of the interest rate.
At reporting date, the interest rate profile of the Group’s interest-bearing borrowings was as
follows:
Fixed rate borrowings
Variable rate borrowings
Sensitivity analysis for variable rate borrowings
2015
2014
(16,687)
(17,925)
(10,113)
(13,339)
As of December 31, 2015, a decrease (increase) by 25 basis points in interest rates of
variable rate borrowings would have increased (decreased) equity and profit or loss by
Rp45 billion, respectively. This analysis assumes that all other variables, in particular foreign
currency rates, remain constant.
d. Credit risk
The following table presents the maximum exposure to credit risk of the Group’s financial
assets:
Cash and cash equivalents
Other current financial assets
Trade and other receivables, net
Other non-current assets
Total
2015
2014
(As restated)
28,117
2,818
7,872
379
39,186
17,672
2,797
7,380
546
28,395
The Group is exposed to credit risk primarily from trade and other receivables. The credit risk
is managed by continuous monitoring of outstanding balances and collection.
Trade and other receivables do not have any major concentration risk whereas no customer
receivable balances exceed 5% of trade receivables of December 31, 2015.
Management is confident in its ability to continue to control and sustain minimal exposure to
credit risk given that the Group has recognized sufficient provision for impairment of
receivables to cover incurred loss arising from uncollectible receivables based on existing
historical data on credit losses.
e. Liquidity risk
Liquidity risk arises in situations where the Group has difficulties in fulfilling financial liabilities
when they become due.
127
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
42. FINANCIAL RISK MANAGEMENT (continued)
1. Financial risk management (continued)
e. Liquidity risk (continued)
Prudent liquidity risk management implies maintaining sufficient cash in order to meet the
Group’s financial obligations. The Group continuously performs an analysis to monitor
financial position ratios, such as liquidity ratios and debt-to-equity ratios, against debt
covenant requirements.
The following is the maturity profile of the Group’s financial liabilities:
December 31, 2015
Trade and other payables
Accrued expenses
Loans and other borrowings
Bank loans
Bonds and notes
Obligations under
finance leases
Two-step loans
Carrying Contractual
amount cash flows
2016
2017
2018
2019
2020 and
thereafter
14,284
8,247
(14,284)
(8,247)
(14,284)
(8,247)
-
-
-
-
-
-
-
-
18,964
9,548
4,580
1,520
(23,760)
(20,919)
(5,182)
(1,032)
(4,339)
(1,012)
(8,780)
(1,008)
(2,037)
(1,226)
(3,422)
(16,641)
(6,069)
(1,791)
(1,027)
(293)
(991)
(282)
(888)
(247)
(800)
(219)
(2,363)
(750)
Total
57,143
(75,070)
(30,065)
(6,624)
(10,923)
(4,282)
(23,176)
Carrying Contractual
amount
cash flows
2015
2016
2017
2018
2019 and
thereafter
December 31, 2014 (As restated)
Trade and other payables
Accrued expenses
Loans and other borrowings
Bank loans
Obligations under
finance leases
Bonds and notes
Two-step loans
12,476
5,211
(12,476)
(5,211)
(12,476)
(5,211)
-
-
-
-
-
-
-
-
13,740
(16,468)
(6,830)
(3,172)
(2,552)
(2,099)
(1,815)
4,789
3,308
1,615
(6,535)
(4,673)
(1,944)
(975)
(1,370)
(282)
(927)
(251)
(274)
(898)
(229)
(264)
(830)
(228)
(230)
(2,905)
(2,595)
(894)
Total
41,139
(47,307)
(27,144)
(4,624)
(3,943)
(3,387)
(8,209)
The difference between the carrying amount and the contractual cash flows is interest value.
2. Fair value of financial assets and financial liabilities
a. Fair value measurement
Fair value is the amount for which an asset could be exchanged, or liability settled, in an arm’s
length transaction.
The Group determined the fair value measurement for disclosure purposes of each class of
financial assets and financial liabilities based on the following methods and assumptions:
(i) The fair values of short-term financial assets and financial liabilities with maturities of one
year or less (cash and cash equivalents, trade and other receivables, other current
financial assets, trade and other payables, accrued expenses, and short-term bank loans)
and other non-current assets are considered to approximate their carrying amounts as the
impact of discounting is not significant.
128
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
42. FINANCIAL RISK MANAGEMENT (continued)
2. Fair value of financial assets and financial liabilities (continued)
a. Fair value measurement (continued)
(ii) The fair values of long-term financial asssets and financial liabilities (other non-current
assets (long-term receivables and restricted cash) and liabilities) approximate their
carrying amounts as they were measured based on the discounted future contractual cash
flows.
(iii) Available-for-sale financial assets primarily consist of mutual funds, Corporate and
Government bonds. Mutual funds actively traded in an established market are stated at
fair value using quoted market price or, if unquoted, determined using a valuation
technique. Corporate and Government bonds are stated at fair value by reference to
prices of similar securities at the reporting date.
(iv) The fair values of long-term financial liabilities are estimated by discounting the future
contractual cash flows of each liability at rates offered to the Group for similar liabilities of
comparable maturities by the bankers of the Group, except for bonds which are based on
market prices.
The fair value estimates are inherently judgmental and involve various limitations, including:
a. Fair values presented do not take into consideration the effect of future currency
fluctuations.
b. Estimated fair values are not necessarily indicative of the amounts that the Group would
record upon disposal/termination of the financial assets and liabilities.
b. Classification and fair value
The following table presents the carrying value and estimated fair values of the Group's
financial assets and liabilities based on their classifications, other than those with carrying
amounts that are reasonable approximation of fair values:
Cash and cash equivalents
Other current financial assets
Trade and other receivables, net
Other non-current assets
Total financial assets
Trade and other payables
Accrued expenses
Loans and other borrowings
Short-term bank loans
Long-term bank loans
Bond and notes
Obligation under finance lease
Two-step loans
Total financial liabilities
--
December 31, 2015
Trading
Loans and Available for
receivables
sale
Other
financial
liabilities
Total
carrying
amount
Fair
value
-
-
-
-
-
-
-
-
-
-
-
-
-
28,117
2,658
7,872
379
39,026
-
-
-
-
-
-
-
-
-
160
-
-
160
-
-
-
-
-
-
-
-
-
-
-
-
-
28,117
2,818
7,872
379
28,117
2,818
7,872
379
39,186
39,186
(14,284)
(8,247)
(14,284)
(8,247)
(602)
(18,362)
(9,548)
(4,580)
(1,520)
(602)
(18,362)
(9,548)
(4,580)
(1,520)
(14,284)
(8,247)
(602)
(18,314)
(9,541)
(4,580)
(1,538)
(57,143)
(57,143)
(57,106)
December 31, 2014
(As restated)
Trading
Loans and Available for
receivables
sale
Other
financial
liabilities
Total
carrying
amount
Fair
value
Cash and cash equivalents
Other current financial assets
Trade and other receivables, net
Other non-current assets
Total financial assets
-
-
-
-
-
17,672
2,543
7,380
546
28,141
-
254
-
-
254
-
-
-
-
-
17,672
2,797
7,380
546
17,672
2,797
7,380
546
28,395
28,395
129
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
42. FINANCIAL RISK MANAGEMENT (continued)
2. Fair value of financial assets and financial liabilities (continued)
b. Classification and fair value (continued)
December 31, 2014
Other
Total
Trading
Loans and Available for financial
receivables sale
liabilities
carrying
amount
Fair
value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(12,476)
(5,211)
(12,476)
(5,211)
(1,810)
(11,930)
(4,789)
(3,308)
(1,615)
(1,810)
(11,930)
(4,789)
(3,308)
(1,615)
(12,476)
(5,211)
(1,810)
(11,787)
(4,789)
(3,355)
(1,650)
(41,139)
(41,139)
(41,078)
Trade and other payables
Accrued expenses
Loans and other borrowings
Short-term bank loans
Long-term bank loans
Obligation under finance lease
Bonds and notes
Two-step loans
Total financial liabilities
c. Fair value hierarchy
The table below presents the recorded amount of financial assets measured at fair value and
limited mutual funds participation unit for debt-based securities where the Net Asset Value
(“NAV”) per share of the investments information is not published as explained below:
Financial assets
Available-for-sale securities
Fair value through profit or loss
Total
Financial assets
Available-for-sale securities
Fair value through profit or loss
Total
December 31, 2015
Fair value measurement at reporting date using
Quoted prices
in active markets Significant
for identical
assets or
liabilities
(level 1)
other
observable
inputs
(level 2)
Significant
unobservable
inputs
(level 3)
Fair Value
160
172
332
55
-
55
105
-
105
-
172
172
December 31, 2014
Fair value measurement at reporting date using
Quoted prices
in active markets Significant
for identical
assets or
liabilities
(level 1)
other
observable
inputs
(level 2)
Significant
unobservable
inputs
(level 3)
Fair Value
254
290
544
52
-
52
202
-
202
-
290
290
130
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
42. FINANCIAL RISK MANAGEMENT (continued)
2. Fair value of financial assets and financial liabilities (continued)
c. Fair value hierarchy (continued)
Available-for-sale financial assets primarily consist of mutual funds, and Corporate and
Government bonds. Corporate and Government bonds are stated at fair value by reference to
prices of similar securities at the reporting date. As they are not actively traded in an
established market, these securities are classified as level 2.
Financial asset at fair value through profit or loss represents the Put Option on the 20%
remaining ownership
the divestment
considerations. Since the fair value is not observable and valuation technique is used to
determine the fair value, this financial asset is classified as level 3.
Indonusa which was received as part of
in
Mutual funds actively traded in an established market are stated at fair value using quoted
market price and classified within level 1. The valuation of the mutual funds invested in
Corporate and Government bonds and put option requires significant management judgment
due to the absence of quoted market prices, the inherent lack of liquidity and the long-term
nature of such assets. As these investments are subject to restrictions on redemption (such as
transfer restrictions and initial lock-up periods) and observable activity for the investments is
limited, these investments are therefore classified within level 3 of the fair value hierarchy.
Management considers, among other assumptions, the valuation and quoted price of the
arrangement of the mutual funds.
Reconciliations of the beginning and ending balances for items measured at fair value using
significant unobservable inputs (level 3) as of December 31, 2015 and 2014 are as follows:
Beginning balance
Unrealized loss - recognized in consolidated
statement of profit or loss and other
comprehensive income
Ending balance
2015
2014
290
(118)
172
297
(7)
290
43. CAPITAL MANAGEMENT
The capital structure of the Group is as follows:
2015
2014
(As restated)
Amount
Portion
Amount
Portion
Short-term debts
Long-term debts
Total debts
Equity attributable to owners of
the parent company
602
34,010
0.55%
30.99%
1,810
21,642
1.98%
23.74%
34,612
31.54%
23,452
25.72%
75,136
68.46%
67,721
74.28%
Total
109,748
100.00%
91,173
100.00%
131
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
43. CAPITAL MANAGEMENT (continued)
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern in order to provide returns for stockholders and benefits to other stakeholders and to
maintain an optimum capital structure to minimize the cost of capital.
Periodically, the Group conducts debt valuation to assess possibilities of refinancing existing debts
with new ones, which have more efficient cost that will lead to more optimized cost-of-debt. In case of
idle cash with limited investment opportunities, the Group will consider buying back its shares of stock
or paying dividend to its stockholders.
In addition to complying with loan covenants, the Group also maintains its capital structure at the level
it believes will not risk its credit rating and which is comparable with its competitors.
Debt-to-equity ratio (comparing net interest-bearing debt to total equity) is a ratio, which is monitored
by management to evaluate the Group’s capital structure and review the effectiveness of the Group’s
debts. The Group monitors its debt levels to ensure the debt-to-equity ratio complies with or is below
the ratio set out in its contractual borrowings arrangements and that such ratio is comparable or better
than that of regional area entities in the telecommunications industry.
The Group’s debt-to-equity ratio as of December 31, 2015 and 2014 is as follows:
Total interest-bearing debts
Less: cash and cash equivalents
Net debts
Total equity attributable to owners of the parent company
Net debt-to-equity ratio
2015
2014
(As restated)
34,612
(28,117)
6,495
75,136
8.64%
23,452
(17,672)
5,780
67,721
8.54%
As stated in Notes 18, 19 and 20, the Group is required to maintain a certain debt-to-equity ratio and
debt service coverage ratio by the lenders. For the years ended December 31, 2015 and 2014, the
Group has complied with the externally imposed capital requirements.
44. SUPPLEMENTAL CASH FLOWS INFORMATION
The non-cash investing activities for the years ended December 31, 2015 and 2014 are as follows:
Acquisition of property and equipment credited to:
Trade payables
Obligations under finance leases
Non-monetary exchange
Acquisition of intangible assets credited
to trade payables
2015
2014
4,979
452
-
5,621
528
126
179
119
132
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
45. SUBSEQUENT EVENTS
a. On January 14, 2016, Telkom Akses received proceeds of bank loan from BNI credit facility
amounting to Rp97 billion.
b. On February 15, 2016, Telkomsel filed an appeal to the Tax Authorities for the underpayment of
corporate income tax of Rp250 billion (including penalty of Rp81.1 billion). As of the date of
approval and authorization for issuance of these financial statements, the appeal is still in process
(see Note 30e.ii)
133
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
46. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND IFRS (INTERNATIONAL
FINANCIAL REPORTING STANDARDS)
The following tables set forth a reconciliation of the consolidated statement of financial position as of
December 31, 2015 and consolidated statements of profit or loss and other comprehensive income for
the year ended December 31, 2015, in each case between PSAK and IFRS.
PSAK
RECONCILIATION
IFRS
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
DECEMBER 31, 2015
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Other current financial assets
Trade receivables - net of provision for
impairment of receivables
Related parties
Third parties
Other receivables - net of provision for
impairment of receivables
Inventories - net of provision for obsolescence
Advances and prepaid expenses
Claim tax for refund
Prepaid taxes
Total Current Assets
NON-CURRENT ASSETS
Long-term investments
Property and equipment - net of
accumulated depreciation
Prepaid pension benefit costs
Advances and other non-current assets
Claim for tax refund-net of current portion
Intangible assets - net of
accumulated amortization
Deferred tax assets - net
Total Non-current Assets
TOTAL ASSETS
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables
Related parties
Third parties
Other payables
Taxes payables
Accrued expenses
Unearned income
Advances from customers and suppliers
Short-term bank loans
Current maturities of long-term liabilities
Total Current Liabilities
28,117
2,818
1,104
6,413
355
528
5,839
66
2,672
47,912
1,807
103,700
1,331
7,153
1,013
3,056
201
118,261
166,173
2,075
11,919
290
3,273
8,247
4,360
805
602
3,842
35,413
134
-
-
493
(493)
-
-
-
-
-
-
-
(245)
-
-
-
-
-
(245)
(245)
1,329
(1,329)
-
-
-
-
-
-
-
-
28,117
2,818
1,597
5,920
355
528
5,839
66
2,672
47,912
1,807
103,455
1,331
7,153
1,013
3,056
201
118,016
165,928
3,404
10,590
290
3,273
8,247
4,360
805
602
3,842
35,413
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
46. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND IFRS (INTERNATIONAL
FINANCIAL REPORTING STANDARDS) (continued)
PSAK
RECONCILIATION
IFRS
NON-CURRENT LIABILITIES
Deferred tax liabilities - net
Other liabilities
Long service award provisions
Post-retirement health care benefit
provisions
Pension and other
post-retirement benefits
Long-term liabilities - net of current maturities
Obligations under finance leases
Two-step loans
Bonds and notes
Bank loans
Total Non-current Liabilities
TOTAL LIABILITIES
EQUITY
Capital stock
Additional paid-in capital
Treasury stock
Effect of change in equity of
associated companies
Unrealized holding gain on
available-for-sale securities
Translation adjustment
Difference due to acquisition of non-controlling
interests in subsidiaries
Other reserves
Retained earnings
Net equity attributable to:
Owners of the parent company
Non-controlling interests
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
2,110
382
501
118
4,053
3,939
1,296
9,499
15,434
37,332
72,745
5,040
2,935
(3,804)
386
38
543
(508)
49
70,457
75,136
18,292
93,428
166,173
-
-
-
-
-
-
-
-
-
-
-
-
(478)
-
(386)
(38)
(543)
508
299
436
(202)
(43)
(245)
(245)
2,110
382
501
118
4,053
3,939
1,296
9,499
15,434
37,332
72,745
5,040
2,457
(3,804)
-
-
-
-
348
70,893
74,934
18,249
93,183
165,928
135
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
46. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND IFRS (INTERNATIONAL
FINANCIAL REPORTING STANDARDS) (continued)
REVENUES
102,470
-
102,470
PSAK
RECONCILIATION
IFRS
Operations, maintenance and
telecommunication service expenses
Depreciation and amortization expenses
Personnel expenses
Interconnection expenses
General and administrative expenses
Marketing expenses
Loss on foreign exchange - net
Other income
Other expenses
OPERATING PROFIT
Finance income
Finance costs
Share of loss of associated companies
PROFIT BEFORE INCOME TAX
INCOME TAX EXPENSE
PROFIT FOR THE YEAR
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation
Change in fair value of available-for-sale
financial assets
Share of loss of associated companies
Actuarial gain of defined benefits plan, net of tax
Net Other Comprehensive Income
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR
Profit for the year attributable to:
Owners of the parent company
Non-controlling interests
Total comprehensive income for the year
attributable to:
Owners of the parent company
Non-controlling interests
BASIC AND DILUTED EARNINGS
PER SHARE (in full amount)
Net income per share
Net income per ADS
(200 Series B shares per ADS)
(28,116)
(18,534)
(11,874)
(3,586)
(4,204)
(3,275)
(46)
1,500
(1,917)
32,418
1,407
(2,481)
(2)
31,342
(8,025)
23,317
128
(1)
(2)
506
631
23,948
15,489
7,828
23,317
16,130
7,818
23,948
157.77
31,553.37
136
-
(38)
(11)
-
-
-
-
-
-
(49)
-
-
-
(49)
2
(47)
-
-
-
(138)
(138)
(185)
(38)
(9)
(47)
(127)
(58)
(185)
(28,116)
(18,572)
(11,885)
(3,586)
(4,204)
(3,275)
(46)
1,500
(1,917)
32,369
1,407
(2,481)
(2)
31,293
(8,023)
23,270
128
(1)
(2)
368
493
23,763
15,451
7,819
23,270
16,003
7,760
23,763
(0.39)
157.38
(77.71)
31,475.66
These consolidated financial statements are originally issued in Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
46. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND IFRS (INTERNATIONAL
FINANCIAL REPORTING STANDARDS) (continued)
a. Land rights
Under PSAK, land rights are recorded as part of property and equipment and are not amortized,
unless there is indication that the extension or renewal of land rights is not expected to be or will
not be received. Costs incurred to process the extension or renewal of land legal rights are
recognized as intangible assets and amortized over the shorter of the term of the land rights or the
economic life of the land.
Under IFRS, land rights are accounted for as finance lease and presented as part of property and
equipment. Land rights are amortized over the lease term.
b. Related party transactions
Under Bapepam - LK Regulation No. VIII.G.7 regarding the Presentation and Disclosures of
Financial Statements of Issuers or Public Companies, a government-related entity is an entity that
is controlled, jointly controlled or significantly influenced by a government. Government in this
context is the Ministry of Finance or the Local Government, as the shareholder of the entity.
Under IFRS, a government-related entity is an entity that is controlled, jointly controlled or
significantly influenced by a government. Government in this context refers to the Government of
Indonesia, government agencies and similar bodies whether local, national or international.
137
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
LAPORAN KEUANGAN
TANGGAL 31 DESEMBER 2015
DAN UNTUK TAHUN YANG BERAKHIR
PADA TANGGAL TERSEBUT
BESERTA LAPORAN AUDITOR INDEPENDEN
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM
BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2015
AND FOR THE YEAR THEN ENDED
WITH INDEPENDENT AUDITORS’ REPORT
Daftar Isi
Table of Contents
Halaman/
Page
Surat Pernyataan SGM CDC
Laporan Auditor Independen
SGM CDC’s Statement
Independent Auditors’ Report
Laporan Posisi Keuangan .............................................. 1
.................................. Statement of Financial Position
Laporan Aktivitas........................................................... 2
............................................... Statement of Activities
Laporan Arus Kas ......................................................... 3
........................................... Statement of Cash Flows
Catatan Atas Laporan Keuangan ................................... 4 - 37 .............................. Notes to the Financial Statements
************************
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
LAPORAN AKTIVITAS
Tahun yang Berakhir pada Tanggal
31 Desember 2015
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM
BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
(Expressed in Rupiah)
Tahun yang Berakhir pada
tanggal 31 Desember/
Year Ended December 31,
2015
Catatan/
Notes
2014
PERUBAHAN ASET NETO
TIDAK TERIKAT
PENDAPATAN
Pendapatan Jasa Administrasi
Pinjaman
Pendapatan Bunga
Program Kemitraan
Program Bina Lingkungan
Pendapatan lain - lain
17.874.573.518
1.566.703.122
3.048.273.583
31.206.191
15
16a
16b
17
38.881.631.441
9.656.400.307
7.139.747.899
5.238.893.226
CHANGES IN UNRESTRICTED
NET ASSETS
REVENUE
Loan Administration Service
Income
Interest Income on
Partnership Program
Community Development
Program
Other Income
JUMLAH PENDAPATAN
22.520.756.414
60.916.672.873
TOTAL REVENUE
BEBAN
Dana Pembinaan Kemitraan
Penyaluran Dana Bina Lingkungan
Beban Pembinaan
Beban Administrasi dan Umum
Kerugian Penyisihan Penurunan
Nilai Pinjaman, neto
Beban Sewa
JUMLAH BEBAN
PENURUNAN ASET
NETO TIDAK TERIKAT
TAHUN BERJALAN
PENURUNAN
ASET NETO TERIKAT
TAHUN BERJALAN
PENURUNAN ASET NETO
TAHUN BERJALAN
6.014.476.847
-
2.289.880.645
5.584.101.195
20.641.603.199
1.436.320.910
35.966.382.796
18
19
20
21
6e
22
15.294.716.793
-
5.101.507.680
EXPENSES
Fostering Partnership Funds
Community Development
Funds Distribution
Empowerment Expenses
General and
12.985.184.323
Administration Expenses
30.628.234.796
2.821.557.515
Allowance for Impairment
of Loan, net
Rent Expenses
66.831.201.107
TOTAL EXPENSES
(13.445.626.382)
(5.914.528.234)
DECREASE IN
UNRESTRICTED NET ASSETS
FOR THE YEAR
-
DECREASE IN
RESTRICTED NET ASSETS
FOR THE YEAR
-
(13.445.626.382)
(5.914.528.234)
DECREASE IN NET ASSETS
FOR THE YEAR
NET ASSETS
AT BEGINNING OF YEAR
ASET NETO AWAL TAHUN
584.874.399.174
590.788.927.408
ASET NETO AKHIR TAHUN
571.428.772.792
584.874.399.174
NET ASSETS AT END OF YEAR
Catatan atas laporan keuangan terlampir merupakan bagian
yang tidak terpisahkan dari laporan keuangan secara
keseluruhan.
The accompanying notes form an integral part of these financial
statements taken as a whole.
2
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
LAPORAN ARUS KAS
Tahun yang Berakhir pada Tanggal
31 Desember 2015
(Disajikan dalam Rupiah)
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM
BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2015
(Expressed in Rupiah)
Tahun yang Berakhir pada
tanggal 31 Desember/
Year Ended December 31,
2015
2014
AKTIVITAS OPERASI
Penurunan Aset Neto tahun berjalan
(13.445.626.382)
(5.914.528.235)
OPERATING ACTIVITIES
Decrease in Net Assets for the year
Penyesuaian
Kerugian penyisihan penurunan
nilai pinjaman, neto
Pendapatan Lain - lain
Perubahan aset dan liabilitas
Pinjaman kepada BUMN Pembina lain/
Lembaga Penyalur
Pinjaman kepada Mitra Binaan
Piutang Lain - lain
Liabilitas Lancar Lainnya
Beban Akrual
Angsuran Belum Teridentifikasi
Kelebihan Pembayaran Angsuran
Utang Lain - lain
KAS NETO DIGUNAKAN UNTUK
AKTIVITAS OPERASI
PENURUNAN
KAS DAN SETARA KAS
KAS DAN SETARA KAS PADA
AWAL TAHUN
KAS DAN SETARA KAS PADA
AKHIR TAHUN
20.641.603.199
-
30.628.234.796
(1.825.352.893)
5.650.000.004
(8.345.175.617)
(66.741.740.864) (203.144.856.947)
847.074.513
-
10.972.947.055
-
879.175.000
(879.175.000)
51.509.983
346.012.126
(49.282.432)
(1.154.632.743)
(38.252.218.616)
(348.173.500)
(44.958.786.105) (225.125.420.448)
(44.958.786.105) (225.125.420.448)
Adjustments
Allowance for Impairment
of Loan, net
Other Income
Change in asset and liability
Loan to other Foster SOE or
Distributing Partners
Loan to Fosters Partners
Other Receivable
Other Current Liabilities
Accrued Expense
Unidentified Installment
Overpayment of Installment
Other Payables
NET CASH FLOWS USED TO
OPERATING ACTIVITIES
DECREASE IN CASH AND
CASH EQUIVALENTS
164.471.231.080 389.596.651.528
119.512.444.975 164.471.231.080
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS
AT END OF YEAR
Catatan atas laporan keuangan terlampir merupakan bagian
yang tidak terpisahkan dari laporan keuangan secara
keseluruhan.
The accompanying notes form an integral part of these financial
statements taken as a whole.
3
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
1.
INFORMASI MENGENAI UNIT COMMUNITY
DEVELOPMENT CENTER
1.
INFORMATION
DEVELOPMENT CENTER UNIT
OF
COMMUNITY
a. Pendirian dan Informasi Umum
a. Establishment and General Information
Perseroan
Lingkungan
Indonesia Tbk
Pusat Pengelolaan Program Kemitraan dan
Program Bina
(Community
Development Center) (“CDC”) didirikan oleh
(Persero)
Perusahaan
PT Telekomunikasi
(BUMN
Pembina) melalui Keputusan Direksi No. 61/
PS150/ CTG-10/ 2003 tentang Pembentukan
Organisasi
Program
Kemitraan dan Program Bina Lingkungan.
Keputusan Direksi ini telah berubah beberapa
kali. Keputusan Direksi ini terakhir kali diubah
melalui Keputusan Direksi No. KD. 12/ PS150/
COP-B0030000/2008 tanggal 5 Februari 2008
tentang Organisasi Pusat Pengelolaan
Program Kemitraan dan Program Bina
Lingkungan (Community Development Center).
Pengelola
Pusat
Perseroan
Lingkungan
Pusat Pengelolaan Program Kemitraan dan
Program Bina
(Community
Development Center) (“CDC”) was established
by
(Persero)
Perusahaan
PT Telekomunikasi
Indonesia Tbk (“Foster
SOE”) based on Decree of the Directors
No. 61/PS150/CTG-10/2003
regarding
Establishment of Organization of Pusat
Pengelolaan Program Kemitraan dan Program
Bina Lingkungan (Community Development
Center). This Decree of the Directors has been
ammended
latest
amendment was under Decree of the Directors
No. KD. 12/PS150/COPB0030000/ 2008 dated
February 5, 2008 regarding Organization of
Pusat Pengelolaan Program Kemitraan dan
Program Bina
(Community
Development Center).
times. The
Lingkungan
several
implementasi dari
CDC didirikan sebagai
Keputusan Menteri Badan Usaha Milik Negara
(“BUMN”) No. KEP-236/ MBU/ 2003 tanggal
17 Juni 2003 tentang Program Kemitraan
BUMN dan Usaha Kecil dan Program Bina
Lingkungan. Keputusan Menteri BUMN
tersebut didasarkan pada Undang-Undang
Republik
Indonesia No. 19 Tahun 2003
tentang penyisihan laba untuk pembinaan
usaha
serta pembinaan
masyarakat.
koperasi
kecil
Perseroan
Pada tanggal 27 April 2007, Kementerian
BUMN memberlakukan PER-05/MBU/2007
menggantikan Keputusan Menteri BUMN
Sebagai
No. KEP-236/MBU/2003.
mplementasi dari PER-05/MBU/2007, Direksi
(Persero)
Perusahaan
PT Telekomunikasi
Tbk
mengeluarkan Keputusan Direksi No. KD. 30/
PR000/ COP - B0030000/ 2007 tanggal 6 Juni
2007 tentang Pengelolaan Program Kemitraan
dan Program Bina Lingkungan yang kemudian
diubah dengan Keputusan Direksi No. KD.21/
PR000/ COP-B0030000/2010 tanggal 19 April
2010 tentang Pengelolaan Program Kemitraan
dan Program Bina Lingkungan.
Indonesia
4
Program
CDC was established as an implementation
from the Decree of Minister of State-Owned
Enterprises (“SOE”) No. KEP-236/MBU/2003
regarding SOE
dated June 17, 2003
Partnership
and Community
Development Program. The Decree of Minister
SOE was based on The Law of Republic of
Indonesia No. 19 Tahun 2003 regarding
to develop small
allowance
business/
community
development.
from profit
cooperative
and
KD.
Indonesia
Telekomunikasi
Decree
On April 27, 2007, Ministry of SOE issued
PER-05/MBU/2007 replacing the Decree of
Minister of SOE No. KEP-236/MBU/2003. As
an implementation of PER-05/MBU/2007, the
Directors of Perusahaan Perseroan (Persero)
Tbk
PT
issued
Directors
the
No.
30/PR000/COP-B0030000/2007
dated June 6, 2007 regarding Management of
Partnership
and Community
Development Program which has been
amended by Decree of the Directors No.
dated
KD.21/PR0000/COP-B0030000/2010
April 19, 2010 regarding Management of
Partnership
and Community
Development Program.
Program
Program
of
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
1.
INFORMASI MENGENAI UNIT COMMUNITY
DEVELOPMENT CENTER (lanjutan)
1.
INFORMATION
DEVELOPMENT CENTER UNIT (continued)
OF
COMMUNITY
a. Pendirian dan Informasi Umum (lanjutan)
a. Establishment and General
Information
(continued)
Kementerian
PER-05/MBU/2007 telah diubah beberapa kali
dan termasuk perubahan pada tanggal 10
BUMN
September
2013,
mengeluarkan PER-08/MBU/2013
tentang
perubahan keempat atas Peraturan Menteri
BUMN No. PER-05/MBU/2007
tentang
Program Kemitraan BUMN dengan Usaha
Kecil dan Program Bina Lingkungan. Pada
tanggal 22 Mei 2015, Kementerian BUMN
telah menerbitkan Peraturan Menteri BUMN
Nomor PER-07/MBU/05/2015 tentang Program
Kemitraan Badan Usaha Milik Negara dengan
Usaha Kecil dan Program Bina Lingkungan
sebagai pengganti PER-08/MBU/2013.
Pada tanggal 3 Juli 2015, Kementerian BUMN
memberlakukan
PER-09/MBU/07/2015
menggantikan Keputusan Menteri BUMN PER-
07/MBU/05/2015. Sebagai implementasi dari
PER-09/MBU/07/2015, Direksi Perusahaan
Perseroan
PT Telekomunikasi
Indonesia Tbk mengeluarkan Peraturan Direksi
No.
CDC-
PD.702.00/r.00/PR000/
A1040000/2015 tanggal 10 Desember 2015
tentang Pengelolaan Program Kemitraan dan
Program Bina Lingkungan.
(Persero)
Perseroan
CDC Pusat berdomisili di Kantor Pusat
Perusahaan
(Persero)
PT Telekomunikasi Indonesia Tbk (“Telkom”),
Jl Japati No. 1 Bandung. Community
Development (“CD”) Regional dan CD Witel
berdomisili di Kantor Divisi Regional (“Divre”)
dan Kantor Wilayah (“Witel”) Telkom yang
tersebar di seluruh Indonesia.
the
regarding
PER-05/MBU/2007 has been amended for
several times including the amendment on
September 10, 2013, Minister of SOE issued
PER-08/MBU/2013
fourth
amendment of regulation of Ministry of SOE
No. PER-05/MBU/2007
regarding SOE
Partnership Program with Small Business and
Community Development Program. On May
22, 2015, Minister of SOE
issued PER-
regarding SOE Partnership
07/MBU/2015
Program with Small Business and Community
Development Program
replacing PER-
08/MBU/2013.
On July 3, 2015, Ministry of SOE issued Per-
09/MBU/07/2015 replacing
the Decree of
Minister of SOE No. PER-07/MBU/2015. As an
implementation of PER-09/MBU/07/2015, the
Directors of Perusahaan Perseroan (Persero)
Telekomunikasi
Tbk
PT
Directors
Decree
the
issued
No.
CDC-
PD.702.00/r.00/PR000/
A1040000/2015 dated 10 Desember 2015
of Partnership
regarding Management
Program
and Community Development
Program.
Indonesia
of
Perseroan
Perusahaan
Head office of CDC is domiciled in Head office
of
(Persero)
PT Telekomunikasi Indonesia Tbk (“Telkom”),
Jl Japati No. 1 Bandung. Community
Development (“CD”) Region and CD Witel is
domiciled in Regional Division Office (“Divre”)
and Witel Office (“Witel”) Telkom which spread
all over Indonesia.
b. Kegiatan Utama
b. Primary Activities
Kegiatan utama yang dilakukan CDC dalam
program
kemitraan dan program bina
lingkungan (“PKBL”) meliputi kegiatan sebagai
berikut:
1) Penyaluran
untuk
pinjaman
kerja dan atau
tetap dalam rangka
dana
membiayai modal
pembelian aktiva
meningkatkan produksi dan penjualan.
2) Penyaluran dana pinjaman khusus untuk
dalam
membiayai
kebutuhan
pelaksanaan kegiatan usaha Mitra Binaan
yang bersifat jangka pendek dalam rangka
memenuhi pesanan dari rekanan usaha
Mitra Binaan.
dana
The primary activities of CDC in Partnership
and Community Development
Program
Program (“PKBL”)
following
activities:
1) Distribution of funds to finance working
capital loans and or purchase of fixed
assets to increase production and sales.
include
the
2) Specific short term loan disbursements to
finance the funding requirements for the
operations of the Foster Partners to fulfill
orders from the business partner of the
Foster Partners.
5
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
1.
INFORMASI MENGENAI UNIT COMMUNITY
DEVELOPMENT CENTER (lanjutan)
1.
INFORMATION
DEVELOPMENT CENTER UNIT (continued)
OF
COMMUNITY
b. Kegiatan Utama (lanjutan)
b. Primary Activities (continued)
3) Pemberian bantuan dana bina lingkungan
yang digunakan untuk
tujuan yang
memberikan manfaat kepada masyarakat
di wilayah usaha dalam bentuk bantuan
untuk:
a. Korban bencana alam
b. Pendidikan dan/atau pelatihan
c. Peningkatan kesehatan
d. Pengembangan prasarana dan/atau
sarana umum
e. Sarana ibadah
f. Pelestarian alam
g. Sosial kemasyarakatan dalam rangka
pengentasan kemiskinan
lain yang
h. Pendidikan, pelatihan, pemagangan,
pemasaran, promosi, dan bentuk
bantuan
terkait dengan
upaya peningkatan kapasitas mitra
binaan program kemitraan. Besarnya
dana tersebut diambil dari alokasi
dana Program BL, maksimal sebesar
20%
(dua puluh persen) yang
diperhitungkan dari dana Program
Kemitraan yang disalurkan pada
tahun berjalan.
4) Pengawasan
Binaan.
5) Pelaporan kegiatan PKBL.
3) Community development donation funds is
used
the
community in the areas of business in the
form of assistance for:
for purposes
that benefit
a. Natural disaster victims
b. Education and/or training
c. Health improvement
d. Developments of infrastructure and/or
public facilities
e. Places of worship
f. Nature conservation
g. Civil society
alleviation
h. Education,
in order
for poverty
internships,
trainings,
promotions and other activities related
to the improvement of productivity of
foster partner from partnership program.
The amount of these funds are taken
from community development program
and set at a maximum of 20% from the
Partnership Program fund distributed
during the year.
kegiatan
usaha Mitra
4) Monitoring of the operations of Foster
Partners.
5) Reporting of PKBL acitivities.
c. Sumber Dana
c. Funding Resources
Sumber dana CDC adalah berasal dari
anggaran yang diperhitungkan sebagai biaya
Perusahaan
(Persero)
PT Telekomunikasi Indonesia Tbk sebagai
BUMN Pembina dan hasil pengembangan
dana program.
Perseroan
Source of CDC’s funding is derived from
budget which has been decided as part of
Perusahaan
(Persero)
PT Telekomunikasi Indonesia Tbk expenses
as Fosters SOE and
fund development
program.
Perseroan
d. Susunan Pengelola
d. Management Structure
Susunan Pengelola CDC pada
tanggal
31 Desember 2015 dan 2014 adalah sebagai
berikut:
Management Structure of CDC as of
December 31, 2015 and 2014 is as follows:
31 Desember/December 31,
2015
2014
Nur Hassim Rusdi Nur Hassim Rusdi
Haris Widjanarko Haris Widjanarko
Susilo Budi Utomo Susilo Budi Utomo
Muhammad
Wahyudi
Harmon Yero
Senior General Manager CDC
Senior Manager Perencanaan dan
Pengendalian
Senior Manager Keuangan
Senior Manager
Program Kemitraan
Senior Manager
Program Bina Lingkungan
Hery Susanto
Hery Susanto
6
CDC Senior General Manager
Senior Manager of Planning and
Controlling
Senior Manager of Finance
Senior Manager of
Partnership Program
Senior Manager of Community
Development Program
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
1.
INFORMASI MENGENAI UNIT COMMUNITY
DEVELOPMENT CENTER (lanjutan)
1.
INFORMATION
DEVELOPMENT CENTER UNIT (continued)
OF
COMMUNITY
d. Susunan Pengelola (lanjutan)
d. Management Structure (continued)
diubah
KD.21/PR000/COP-
Berdasarkan
B0030000/2010 tentang Pengelolaan Program
Kemitraan dan Program Bina Lingkungan yang
kemudian
dengan
PD.702.00/r.00/PR000/ CDC- A1040000/2015
tentang
tanggal
Pengelolaan Program Kemitraan dan Program
Bina Lingkungan, CDC disupervisi oleh
Direktur Human Capital Management. Sampai
dengan 31 Desember 2015 and 2014, Direktur
HCM adalah Herdy Rosadi Harman.
10 Desember
2015
was
amended
Based on KD.21/PR000/COP-B0030000/2010
regarding Management
of Partnership
and Community Development
Program
Program
by
which
PD.702.00/r.00/PR000/ CDC- A1040000/2015
regarding
tanggal 10 Desember 2015
Management of Partnership Program and
Community Development Program, CDC is
supervised by the Director of Human Capital
Management. As of December 31, 2015 and
2014, The Director of HCM is Herdy Rosadi
Harman.
Jumlah pengelola untuk tahun yang berakhir
pada tanggal 31 Desember 2015 dan 2014
adalah sebagai berikut:
Number of employees as of December 31,
2015 and 2014 is as follows:
31 Desember/December 31,
2015
2014
CDC Pusat
32
32
CDC Corporate
Seluruh pegawai adalah pegawai yang
memperoleh gaji dan manfaat lainnya dari
Perusahaan
(Persero)
PT Telekomunikasi Indonesia Tbk (“Telkom”)
sehingga masalah penerapan Imbalan Kerja
(PSAK No. 24) dilaksanakan dan menjadi
beban Telkom.
Perseroan
Pemotongan dan penyetoran atas pajak
penghasilan pasal 21 atas pegawai Telkom
yang ditempatkan di CDC dilakukan oleh
Telkom.
All employees are employees who earn
salaries and other benefits from the Company
(Persero) PT Telekomunikasi Indonesia Tbk
("Telkom") so that the application of Employee
Benefits (PSAK No. 24) is implemented by and
charged to Telkom.
Witholding and payment
income
Article 21 of Telkom employee who
assigned at CDC are performed by Telkom.
for
tax
is
e. Otorisasi Penerbitan Laporan Keuangan
e. Authorization of the Issuance of Financial
Statement
telah diselesaikan dan
Laporan keuangan
disahkan untuk diterbitkan oleh Pengelola CDC
pada tanggal 27 Januari 2016.
The financial statements were completed and
authorized for issuance by CDC Management
on January 27, 2016.
7
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
2.
IKHTISAR KEBIJAKAN AKUNTANSI YANG
SIGNIFIKAN
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Kebijakan akuntansi signifikan dan diterapkan dalam
menyusun laporan keuangan untuk tahun yang
berakhir pada tanggal 31 Desember 2015 dan 2014
adalah sebagai berikut:
The significant accounting principles which are
applied consistently in the preparation of the
financial statements for the years ended December
31, 2015 and 2014 are follows:
a. Dasar Penyusunan Laporan Keuangan
a. Basis of Preparation of Financial
Laporan keuangan disusun berdasarkan
Standar Akuntansi Keuangan Entitas Tanpa
Akuntabilitas Publik
(SAK ETAP) yang
diterbitkan oleh Dewan Standar Akuntansi
Keuangan - Ikatan Akuntan Indonesia.
Penerapan SAK ETAP atas penyusunan
laporan keuangan didasarkan pada Surat
Edaran Menteri Negara BUMN Nomor: SE-
02/MBU/Wk/2012 tanggal 23 Februari 2012
tentang Penetapan Pedoman Akuntansi
Program Kemitraan dan Bina Lingkungan yang
berlaku mulai tahun 2012.
Laporan keuangan disusun dengan dasar
akrual, kecuali untuk beberapa akun tertentu
yang disusun berdasarkan pengukuran lain
sebagaimana diuraikan dalam
kebijakan
akuntansi terkait.
Laporan arus kas yang disajikan dengan
langsung,
menggunakan metode
menyajikan penerimaan dan pengeluaran kas
dan setara kas yang diklasifikasikan ke dalam
aktivitas operasi, investasi dan pendanaan.
tidak
Statements
The financial statement is prepared based on
Non - Publicly Accountable Entities Financial
Accounting Standards (SAK ETAP) that was
issued by The Financial Accounting Standard
Board - Indonesian Institute of accountants.
on Minister
The implementation of SAK - ETAP in the
preparation of the financial statement
is
based
of State-Owned
(“SOE”) Circular No. SE-
Enterprises
02/MBU/Wk/2012 dated February 23, 2012
Concerning Determination Guidance of
Accounting Standard for Partnership Program
and Community Development that applied
since 2012.
The financial statements have been prepared
on the accrual basis, except for certain
that prepared based on other
accounts
measurement as explained
related
accounting policy.
in
The statements of cash flows are presented
using the indirect method, presenting cash
receipt and payment and cash equivalents
that are classified in operating, investing and
financing activities.
Tahun buku CDC adalah 1 Januari
31 Desember.
-
The financial reporting period of CDC is
January 1 - December 31.
Mata uang yang digunakan pada laporan
keuangan
juga
adalah Rupiah
merupakan mata uang fungsionalnya.
yang
in
Amounts
the financial statements are
presented in Rupiah which also represents its
functional currency.
b. Kas dan Setara Kas
b. Cash and Cash Equivalents
Kas dan setara kas terdiri atas kas dan bank,
dan semua deposito berjangka yang tidak
dibatasi penggunaannya, yang jatuh tempo
dalam tiga bulan atau kurang sejak tanggal
penempatan.
Cash and cash equivalents consist of cash on
hand and in banks, and unrestricted time
deposits with maturities of three months or
less since placement date.
8
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
2.
IKHTISAR KEBIJAKAN AKUNTANSI YANG
SIGNIFIKAN (lanjutan)
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
c. Pinjaman
c.
Loan
Pinjaman pada awalnya diakui sebesar nilai
wajar dan selanjutnya diukur pada biaya
perolehan diamortisasi, setelah dikurangi
penyisihan
nilai. Penyisihan
penurunan nilai dibentuk berdasarkan evaluasi
Pengurus terhadap tingkat ketertagihan saldo
pinjaman.
penurunan
Pinjaman kepada BUMN Pembina Lain atau
Lembaga Penyalur merupakan pinjaman yang
diberikan kepada unit PKBL atau Lembaga
Penyalur sebagai bentuk sinergi antar unit
PKBL.
Pinjaman kepada mitra binaan dicatat sebagai
pinjaman sebesar pokok pinjaman yang
diberikan dan jasa administrasi pinjaman yang
telah jatuh tempo sesuai dengan kontrak.
Pendapatan jasa administrasi pinjaman dicatat
sebagai pinjaman kepada mitra binaan dan
pendapatan secara akrual untuk pinjaman
yang berkualitas lancar dan kurang lancar.
laporan posisi
Pinjaman kepada mitra binaan dan BUMN
pembina lain atau lembaga penyalur disajikan
dalam
pada
kelompok aset lancar sebesar jumlah yang
diharapkan dapat ditagih dari mitra binaan
walaupun pengembalian pinjaman
yang
disepakati akan diterima melebihi satu tahun
setelah akhir periode pelaporan.
keuangan
Initially loan are measured based on fair
values and subsequently measured at
amortized cost, after deducted by allowance
for impairment losses. The allowance for
impairment are based on Management’s
evaluation on the collectibility of these loan.
Loan to other Foster SOE Distribution
Partners are loans given to Partnership PKBL
unit/ Distributing Partners as synergy form
among PKBL’s units.
Loan to Foster Partners are recognized in the
administration
amount of principal and
service income earned as agreed in the
contract. Administration service income are
recorded as loan to foster partners and as
revenues on accrual basis for loans classified
as current and substandard loan.
Loan to foster partners and other foster SOE/
in
distributing partners are presented
statement of financial position as a current
asset at its realizable value although the
agreed repayment of loan may be more than
1 year after reporting period.
Penggolongan kualitas pinjaman ditetapkan
sebagai berikut:
The classification of
collectibility are as follows:
loan based on its
administration
Current represents principal installment
and
income
payment are paid on time or those late
payments of maximum 30 (thirty) days
from the payment due date.As agreed
with the agreement.
service
i.
tepat waktu atau
pembayaran
Lancar adalah pembayaran angsuran
pokok dan jasa administrasi pinjaman
dilakukan
terjadi
keterlambatan
angsuran
pokok dan/atau jasa administrasi yaitu
selambat-lambatnya 30 (tiga puluh) hari
dari
tanggal jatuh tempo pembayaran
angsuran, sesuai dengan perjanjian yang
telah disepakati.
i.
9
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
2.
IKHTISAR KEBIJAKAN AKUNTANSI YANG
SIGNIFIKAN (lanjutan)
c. Pinjaman (lanjutan)
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
c. Loan (continued)
ii. Kurang
Lancar
apabila
pembayaran
terjadi
keterlambatan
angsuran
pokok dan/atau jasa administrasi pinjaman
yang telah melampaui 30 (tiga puluh) hari
dan belum melampaui 180
(seratus
delapan puluh) hari dari tanggal jatuh
tempo pembayaran angsuran sesuai
dengan perjanjian yang telah disepakati.
iii. Diragukan apabila terjadi keterlambatan
pembayaran angsuran pokok dan/atau
jasa administrasi pinjaman yang telah
melampaui 180 (seratus delapan puluh)
hari dan belum melampaui 270 (dua ratus
tujuh puluh) hari dari tanggal jatuh tempo
pembayaran angsuran sesuai dengan
perjanjian yang telah disepakati.
iv. Macet apabila
terjadi
keterlambatan
pembayaran angsuran pokok dan/atau
jasa administrasi pinjaman yang telah
melampaui 270 (dua ratus tujuh puluh)
hari dari tanggal jatuh tempo pembayaran
angsuran sesuai dengan perjanjian yang
telah disepakati.
ii. Substandard when
late payment of
principal and/or administration service
income payment are between 30 (thirty
days) and 180 (one hundred and eighty)
days
the payment due date of
installment as agreed in the agreement.
from
iii. Doubtful when late payment of principal
income
and/or administration
payment are between 180 (one hundred
and eighty) and 270 (two hundred and
seventy) days from the payment due date of
installment as agreed in the agreement.
service
iv. Loss when late payment of principal and/ or
administration service income payment over
270 (two hundred and seventy) days from
the payment due date of installment as
agreed in te agreement.
d. Penyisihan Penurunan Nilai Pinjaman
d. Allowance for Impairment of Loan
Penyisihan pinjaman merupakan penyisihan
atas pinjaman yang mungkin tidak tertagih.
Penyisihan penurunan nilai pinjaman dibentuk
berdasarkan
terhadap
taksiran Pengelola
tingkat ketertagihan saldo pinjaman.
Allowance for impairment of loan represents
allowance for doubtful loan. This allowance is
calculated based on
the Management’s
estimation of their collectibility.
there
firstly determines whether
is
CDC
objective evidence that there are impairment,
individually for significat loan and collectively
for loan which are insignificant. If CDC decides
that there is no objective evidence of individual
loan are
impairment,
significant or insignificant, CDC classifies these
loan as having similar credit risk characteristics
and determining the impairment collectively.
regardless
those
jumlahnya
secara
tidak
CDC pertama kali menentukan apakah
terdapat bukti objektif mengenai penurunan
nilai secara individual atas pinjaman yang
signifikan secara individual atau secara kolektif
untuk penerimaan yang
tidak
Jika CDC
individual.
signifikan
menentukan
terdapat bukti objektif
mengenai penurunan nilai atas aset keuangan
yang dinilai secara individual, terlepas aset
keuangan tersebut signifikan atau tidak, maka
CDC memasukkan piutang tersebut ke dalam
kelompok pinjaman yang memiliki karakteristik
risiko kredit yang sejenis dan menilai
penurunan nilai kelompok
tersebut secara
kolektif.
10
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
2.
IKHTISAR KEBIJAKAN AKUNTANSI YANG
SIGNIFIKAN (lanjutan)
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
d. Penyisihan Penurunan Nilai Pinjaman
(lanjutan)
d. Allowance
(continued)
for
Impairment
of
Loan
Penyisihan pinjaman dihitung berdasarkan
estimasi kerugian yang tidak dapat ditagih
yaitu secara kolektif berdasarkan prosentase
tertentu tingkat ketertagihan (collection) data
historis yang ada (minimal 2 tahun). Pinjaman
yang penurunan nilainya dinilai secara
individual dan untuk itu kerugian penurunan
nilai diakui, tidak termasuk dalam penilaian
penurunan nilai secara kolektif.
Allowance for impairment of loan is calculated
based on estimated uncollectible loss, which
collectively based on specific percentage of
available historical collectibility rate (2 years of
historical data at minimum). Loan which are
impaired individually and of that losses are
recognised, are not included in the collective
impairment evaluation.
e. Aset Tetap Tidak Berfungsi
e. Fixed Asset Not in Use
Aset tetap diakui berdasarkan harga perolehan
rugi
dikurangi akumulasi penyusutan dan
penurunan nilai. Aset tetap disusutkan dengan
menggunakan metode garis lurus berdasarkan
estimasi masa manfaat aset tetap dengan tarif
penyusutan sebagai berikut:
Fixed asset is recognized at their historical
costs less accumulated depreciation and loss
from impairment. Fixed asset is depreciated
using straight-line method based on
the
estimated useful life and depreciation rate as
follow:
Jenis Aset
Komputer
Inventaris kantor
Tarif Penyusutan/ Masa Manfaat/
Depreciation Rate
Useful Life
50%
50%
2
2
Asset type
Computer
Office equipment
Aset tetap yang sudah tidak dapat digunakan
atau dioperasikan karena rusak atau sebab
lain diklasifikasikan sebagai aset tetap tidak
berfungsi.
Seluruh aset tetap dalam kondisi tidak dapat
digunakan. Dengan demikian, aset
tetap
tersebut diklasifikasikan ke dalam aset tetap
tidak berfungsi (Catatan 7).
Fixed assets that can not be used or operated
due to damaged or other reasons are classified
as fixed assets not in use.
All fixed assets are not in use. Therefore, such
fixed assets classified as fixed assets not in
use (Note 7).
Pada tanggal 31 Desember 2015 dan 2014,
nilai buku bersih aset tetap adalah nihil.
As of December 31, 2015 and 2014, net book
value of fixed asset is zero.
f.
Pinjaman Bermasalah
f. Troubled Loan
Pinjaman bermasalah merupakan pinjaman
macet yang telah diupayakan pemulihannya
dengan penjadwalan kembali (rescheduling)
persyaratan
peninjauan
dan
(reconditioning), namun
terpulihkan.
Pinjaman bermasalah disajikan sebesar nilai
pokok pinjaman dengan besarnya alokasi
penyisihan sebesar 100% dari saldo pinjaman
bermasalah.
kembali
tidak
to
Troubled loan represent loss loan which has
been attempted
recovered by
rescheduling and reconditioning but cannot be
recovered. Troubled loan will be represented at
loan principal value with 100% of troubled loan
balance.
be
cara
Tata
bermasalah mengacu
Menteri.
penghapusbukuan
pinjaman
kepada Peraturan
The procedures to write-off these troubled loan
adhere to Regulation of Ministry.
11
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
2.
IKHTISAR KEBIJAKAN AKUNTANSI YANG
SIGNIFIKAN (lanjutan)
g. Beban Akrual
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
g. Accrued Expenses
Beban akrual adalah beban yang masih harus
dibayar CDC yang timbul karena diterimanya
jasa/ prestasi yang merupakan beban tahun
berjalan tetapi belum dibayar sampai dengan
akhir periode akuntansi.
Accrued expenses are expenses that have to
be paid by CDC which occur due to service
received in the current period but no payment
has been made until end of accounting period.
h. Angsuran Belum Teridentifikasi
h. Unidentified Installments
belum
teridentifikasi
Angsuran
adalah
penerimaan angsuran yang belum dapat
diidentifikasi nama mitra binaannya sampai
dengan akhir periode pelaporan. Angsuran
yang belum dapat diidentifikasi diakui dan
disajikan sebagai liabilitas pada saat angsuran
tersebut diterima.
are
in which
installments
the Foster Partners
installments
Unidentified
received
is
unidentifiable until end of reporting period.
Unidentifed
recognized and
presented as liability when the installment is
received.
installment
is
i. Kelebihan Pembayaran Angsuran
i. Overpayment of Installments
Kelebihan pembayaran angsuran adalah
penerimaan angsuran yang melebihi saldo
pinjaman kepada mitra binaan. Kelebihan
pembayaran angsuran diakui dan disajikan
sebagai liabilitas pada saat setoran diterima.
Kelebihan pembayaran angsuran setiap Mitra
Binaan yang besarnya kurang dari Rp50.000
diakui sebagai Pendapatan Lain-lain Program
Kemitraan, sesuai dengan Keputusan Direksi
Nomor:
KD.21/PR000/COP-B0030000/2010
tanggal 19 April 2010 tentang Pengelolaan
Program Kemitraan dan Program Bina
Lingkungan.
of
installments
Overpayment
represents
repayment from foster partners which exceeds
its
is
loan balance. This overpayment
recognized and presented as liability when the
installment is received.
is
than Rp50,000
Overpayment of installment from each Foster
Partners which
is
less
recognises as Partnership Program Other
Income, based on Decree of the Director
Number: KD.21/PR000/COP-B0030000/2010
dated on April 19, 2010 regarding Management
of Partnership Program and Community
Development Program.
j. Utang Lain-lain dan Liabilitas Lancar
j. Other Payables and Other Current Liabilities
Lainnya
Utang lain-lain dan liabilitas lancar lainnya
diakui pada saat terjadinya transaksi atau saat
perjanjian kontrak. Utang lain-lain dan liabilitas
lancar lainnya dicatat sebesar nilai transaksi
atau perjanjian kontrak.
Other payables and other current liabilities are
recognized when transactions occur or when
contract are completed. Other payables and
other current liability is recognized based on
transaction amount or contracts.
k. Aset Neto
k. Net Assets
Aset neto diklasifikasikan menjadi aset bersih
terikat dan aset bersih tidak terikat. Aset bersih
terikat adalah aset yang penggunaannya
dibatasi untuk program tertentu yang tidak
dapat digunakan untuk kegiatan lainnya. Aset
bersih
terikat adalah aset yang
penggunaannya tidak dibatasi untuk tujuan
tertentu.
tidak
12
Net assets are classified into restricted net
assets and unrestricted net assets. Restricted
net assets represent assets that can only be
utilized limited to spesific program purpose.
Unrestricted net assets represent assets that
can be utilized without being limited for specific
purposes.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
2.
IKHTISAR KEBIJAKAN AKUNTANSI YANG
SIGNIFIKAN (lanjutan)
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
l.
Pendapatan dan Beban
l. Revenue and Expense
Pendapatan
Revenue
Pendapatan diakui dalam laporan aktivitas
berdasarkan basis akrual.
Revenue is recognized in the statement of
activities based on accrual basis.
Pendapatan Jasa Administrasi Pinjaman
Loan Administration Service Income
Pendapatan jasa administrasi pinjaman diukur
dan dicatat sebesar nilai yang telah jatuh
tempo sesuai dengan kontrak untuk pinjaman
dengan status lancar dan kurang lancar.
Administration service income is measured
and recognized as incurred as stated in the
contract for current and substandard loan.
Pendapatan bunga
Interest income
Pendapatan bunga diakui secara akrual.
Pendapatan bunga diukur dan dicatat sebesar
nilai yang telah ditentukan.
Interest income is recognized based on accrual
is measured and
basis.
amount
stipulated
recorded
determined.
income
on
Interest
based
Beban
Expense
Beban diakui pada saat terjadinya.
Expense is recognised as incurred.
Dana pembinaan kemitraan diakui saat
pembayaran dana tersebut.
Fostering partnership funds are recognized
when the funds are distributed.
m. Perpajakan
m. Taxation
Pajak yang muncul dari seluruh transaksi yang
terjadi di CDC menjadi beban CDC dan
dilaporkan atas nama Perusahaan Perseroan
(Persero) PT Telekomunikasi Indonesia Tbk.
Tax transactions in relation
to CDC are
charged to CDC and reported by Perusahaan
Perseroan
(Persero) PT Telekomunikasi
Indonesia Tbk.
3. PENGGUNAAN PERTIMBANGAN, ESTIMASI
3. ACCOUNTING JUDGEMENTS, ESTIMATION,
DAN ASUMSI
a. Pertimbangan
AND ASSUMPTION
a. Judgements
Dalam proses penerapan kebijakan akuntansi
CDC, Pengelola telah membuat pertimbangan-
pertimbangan berikut ini, yang terpisah dari
estimasi dan asumsi, yang memiliki pengaruh
signifikan terhadap jumlah yang dicatat dalam
laporan keuangan:
the
In
implementation process of CDC’s
accounting policies, Management has prepared
these judgements, separated from estimation
and assumption, which have the significant
impact to the amounts are recognized in the
financial statements:
Implementasi PER-09/MBU/07/2015
The implementation of PER-09/MBU/07/2015
dengan
penerapan PER-
Sehubungan
08/MBU/2013 yang telah diungkapkan dalam
Catatan 1a, sejak 1 Januari 2013, CDC tidak
lagi mencatat alokasi laba dari BUMN pembina
untuk program PKBL dan beban penyaluran
bina lingkungan serta beban operasional yang
terkait
bina
lingkungan tersebut dalam Laporan Aktivitas
(Catatan 19).
penyaluran
dengan
dana
13
In relation to the implementation of PER-
08/MBU/2013 as disclosed in Note 1a, effective
January 1, 2013, CDC is no longer recognized
income allocation from the Foster SOE and
expenses
the distribution of
to
community development fund and operational
the distribution of
expenses
to
community
the
Statements of Activities (Note 19)
development
related
related
fund
at
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
3. PENGGUNAAN PERTIMBANGAN, ESTIMASI
3. ACCOUNTING JUDGEMENTS, ESTIMATION,
DAN ASUMSI (lanjutan)
AND ASSUMPTION (continued)
a. Pertimbangan (lanjutan)
a. Judgements (continued)
Implementasi PER-09/MBU/07/2015 (lanjutan)
Lingkungan CDC
Selanjutnya, sehubungan dengan penerapan
PER-09/MBU/07/2015 yang telah diungkapkan
dalam Catatan 1a, sejak 3 Juli 2015, Beban
Operasional Program Kemitraan dan Program
Bina
beban
peningkatan kapasitas mitra binaan menjadi
beban Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk selaku BUMN
Pembina. Dengan demikian, CDC tidak lagi
mencatat beban operasional PKBL dalam
Laporan Aktivitas sejak tanggal 3 Juli 2015.
serta
The implementation of PER-09/MBU/07/2015
(continued)
Then, in relation to the implementation of PER-
09/MBU/07/2015 as disclosed
in Note 1a,
effective July 3, 2015, operational expenses of
improvement expenses
CDC and capacity
become
of Perusahaan
Perseroan
(Persero) PT Telekomunikasi
Indonesia Tbk as Foster SOE. Therefore, CDC
no longer recognized operational expenses
from July 3, 2015.
the expenses
tanggal 1
Beban operasional PKBL dari
Januari 2015 sampai dengan 2 Juli 2015
dicatat dalam Laporan Aktivitas sesuai dengan
PER-08/MBU/2013 dan PER-07/MBU/05/2015.
Operational expenses from January 1, 2015
until July 2, 2015 were recorded on statement
of activities based on PER-08/MBU/2013 and
PER-07/MBU/05/2015.
Penentuan mata uang fungsional
The determination of functional currency
Mata uang fungsional CDC adalah mata uang
dari lingkungan ekonomi primer di mana CDC
beroperasi. Mata uang tersebut adalah mata
uang yang mempengaruhi pendapatan dan
beban dari
jasa yang diberikan. CDC
menentukan bahwa mata uang fungsionalnya
adalah Rupiah.
CDC’s functional currency is currencies from
premier economic environment where CDC
operates. The related currency is currency that
gives influence to revenues and expenses
from services given. CDC determines that their
functional currency is Rupiah.
Penyisihan penurunan nilai pinjaman
Allowance for impairment of loan
Apabila terdapat bukti objektif bahwa rugi
penurunan nilai telah terjadi atas pinjaman,
CDC mengestimasi penyisihan untuk kerugian
penurunan nilai atas pinjaman yang secara
khusus diidentifikasi sebagai pinjaman yang
kemungkinan
tidak dapat ditagih. Tingkat
penyisihan ditelaah oleh Pengelola dengan
dasar faktor-faktor yang mempengaruhi tingkat
tertagihnya pinjaman tersebut.
menggunakan
CDC
pertimbangan
berdasarkan fakta dan situasi yang tersedia,
termasuk tetapi tidak terbatas pada, jangka
waktu hubungan CDC dengan mitra binaan
dan status kredit pelanggan berdasarkan
kualitas pinjaman (Catatan 5, 6 dan 8).
If there is objective evidence that losses
because of impairment has incurred on loan,
CDC estimates an allowance for impairment
loss of those loan specifically identified as
uncollectible. The allowance examined by
Management based several factors influencing
of loan collectibility.
CDC uses judgements based on available
facts and situations, including but not limited
to, CDC’s period of relationship with foster
partners and foster partner’s credit status
based on collectibility of loans (Notes 5, 6 and
8).
14
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
3. PENGGUNAAN PERTIMBANGAN, ESTIMASI
3. ACCOUNTING JUDGEMENTS, ESTIMATIONS
DAN ASUMSI (lanjutan)
b. Estimasi dan Asumsi
AND ASSUMPTIONS (continued)
b. Estimations and Assumptions
Penyisihan penurunan nilai pinjaman
Allowance for impairment of loan
menggunakan
CDC
pertimbangan
berdasarkan fakta-fakta terbaik yang tersedia
untuk mengakui penyisihan secara individu
atas pelanggan terhadap jumlah yang jatuh
tempo untuk menurunkan pinjaman individu
jumlah yang diharapkan dapat ditagih.
Pencadangan secara individu ini ditelaah jika
terdapat informasi tambahan yang diterima
yang
yang
diestimasikan.
mempengaruhi
jumlah
CDC uses judgement based on best facts
available to recognize indiviual allowance for
customers to adjust the individual loan to its
realizable amount. This individual allowance
is additional
if
will be assessed
there
information
the
received which
estimated amount.
affect
tidak
CDC juga meneliti penyisihan penurunan nilai
secara kolektif terhadap risiko kredit debitur
mereka yang dikelompokkan berdasarkan
karakteristik kredit yang sama, yang meskipun
tidak diidentifikasi secara spesifik memerlukan
cadangan tertentu, memiliki risiko yang lebih
tertagih dibandingkan dengan
besar
pinjaman yang diberikan kepada debitur.
Penyisihan penurunan nilai pinjaman dihitung
berdasarkan kajian nilai terkini dan historis
tingkat ketertagihan dari pinjaman. Penyisihan
pinjaman dihitung berdasarkan estimasi
kerugian yang tidak dapat ditagih yaitu secara
kolektif berdasarkan prosentase
tertentu
tingkat ketertagihan (collection) data historis
yang ada (minimal 2 tahun). Penyisihan ini
untuk
disesuaikan
mencerminkan hasil aktual dan estimasi
(Catatan 5, 6 dan 8).
berkala
secara
risks,
credit
assesses
regardless
the allowance
to other debtors. Allowance
CDC also
for
impairment loss collectively, grouped by the
same
requires
individually identified of allowance, have a
higher risk of uncollectibility compared to loan
given
for
impairment of loan is measured based on the
evaluation of current value and historical rate
of loan collectibility. Allowance for impairment
of loan is recognised based on the the
estimation of uncollectible amount,which is
done collectively based on a specific
percentage of the two-year-minimum historical
rate of loan collectibility. This allowance is
adjusted periodically to reflect actual result
and estimation (Notes 5, 6 and 8).
4. KAS DAN SETARA KAS
4. CASH AND CASH EQUIVALENT
31 Desember/December 31,
2015
2014
Program Kemitraan
Kas di Bank:
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk
7.002.145.427
45.607.574.684
5.252.077.147 12.060.256.011
Partnership Program
Cash in Bank:
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk
Deposito:
PT Bank Mandiri (Persero) Tbk
PT Bank Rakyat Indonesia (Persero) Tbk
12.254.222.574
57.667.830.695
-
-
-
15.000.000.000
15.000.000.000
30.000.000.000
Deposit:
PT Bank Mandiri (Persero) Tbk
PT Bank Rakyat Indonesia (Persero) Tbk
Jumlah Kas dan Setara Kas
Program Kemitraan
12.254.222.574
87.667.830.695
Total Cash and Cash Equivalent
Partnership Program
15
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
4. KAS DAN SETARA KAS (lanjutan)
4. CASH AND CASH EQUIVALENT (continued)
Program Bina Lingkungan
Kas di Bank:
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk
Deposito:
PT Bank Danamon Tbk
PT Bank Tabungan Negara (Persero) Tbk
31 Desember/December 31,
2015
2014
107.257.334.628
887.773
21.107.186.145
696.214.240
107.258.222.401
21.803.400.385
Community Development Program
Cash in Bank:
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk
-
-
-
35.000.000.000
20.000.000.000
55.000.000.000
Deposit:
PT Bank Danamon Tbk
PT Bank Tabungan Negara (Persero) Tbk
Jumlah Kas dan Setara Kas
Bina Lingkungan
107.258.222.401
76.803.400.385
Total Cash and Cash Equivalent
of Community Development
Jumlah Kas dan Setara Kas
119.512.444.975 164.471.231.080
Total Cash and Cash Equivalent
5. PINJAMAN
KEPADA
BUMN
PEMBINA
5. LOAN TO OTHER FOSTER SOE/ DISTRIBUTING
LAIN/LEMBAGA PENYALUR
PARTNERS
31 Desember/December 31,
2015
2014
PT Sang Hyang Seri (Persero)
Bank UMKM Jatim
Baitul Maal wat Tamwil Hidayah
9.637.740.363
4.999.999.996
1.806.768.715
9.687.740.363
10.600.000.000
1.806.768.715
PT Sang Hyang Seri (Persero)
Bank UMKM Jatim
Baitul Maal wat Tamwil Hidayah
Penyisihan penurunan nilai pinjaman
Penilaian individual
Penilaian kolektif
16.444.509.074
22.094.509.078
(11.444.509.078) (11.494.509.078)
(113.420.000)
-
(11.444.509.078)
(11.607.929.078)
Allowance for impairment of loan
Individual assessment
Collective assessment
Jumlah
4.999.999.996
10.486.580.000
Total
Mutasi penyisihan penurunan nilai pinjaman adalah
sebagai berikut:
Movement the allowance for impairment of loan are
as follows:
31 Desember/December 31,
2015
2014
Saldo awal
Penambahan - Neto (Catatan 6e)
Pengurangan - Neto (Catatan 6e)
11.607.929.078
-
(163.420.000)
9.903.074.425
1.704.854.653
-
Beginning balance
Additions - Net (Notes 6e)
Disposals - Net (Notes 6e)
11.444.509.078
11.607.929.078
Manajemen berpendapat bahwa saldo penyisihan
penurunan nilai pinjaman cukup untuk menutup
kerugian atas tidak tertagihnya pinjaman.
the balance of
Management believes
allowance for impairment of loan is adequate to
cover losses from uncollectible loan.
that,
16
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
5. PINJAMAN
KEPADA
LAIN/LEMBAGA PENYALUR (lanjutan)
BUMN
PEMBINA
5.
LOAN TO OTHER FOSTER SOE/ DISTRIBUTING
PARTNERS (continued)
PT Sang Hyang Seri (Persero)
PT Sang Hyang Seri (Persero)
2012,
tanggal
27 Maret
CDC
Pada
menandatangani perjanjian nomor 332/ HK840/
CDC - A1050000/2012 dengan PT Sang Hyang
Seri (Persero) (“SHS”) untuk penyaluran dana
Program Kemitraan kepada para petani, yang
disalurkan melalui SHS. Dalam perjanjian, SHS
bertindak sebagai avalist (penjamin). Perjanjian
berlaku selama 36 bulan, mulai tahun 2012 sampai
dengan tahun 2015, dengan nilai plafon penyaluran
pinjaman sebesar Rp17.000.000.000 yang telah
disalurkan seluruhnya pada tahun 2012.
(“SHS”)
On March 27, 2012, CDC signed a contract
number 332/HK840/CDC-A1050000/2012 with PT
the
Sang Hyang Seri (Persero)
distribution of Partnership Program
to
farmers which will be distributed by SHS. In
agreement, SHS acts as an avalist (guarantor).
This contract is valid for 36 months, starting in
2012 to 2015, with funds distribution limit amounted
Rp17,000,000,000 which have been fully disbursed
in 2012.
for
funds
Pada tanggal 1 Desember 2014, CDC dan SHS
sepakat untuk mengadakan perubahan terhadap
tersebut. Pokok perubahan yang
perjanjian
dilakukan adalah:
ada
- Tidak
atas
pengenaan
keterlambatan pembayaran setelah tanggal 1
November 2013. Denda yang diakui hingga
tanggal 31 Oktober 2013 adalah sebesar
Rp1.825.325.895.
denda
- Masa berlaku pinjaman menjadi 36 bulan
hingga bulan Oktober 2017.
Per 31 Desember 2015 saldo pinjaman beserta
denda yang harus dibayar oleh SHS sebesar
Rp9.637.640.363 (2014: 9.687.740.363) dengan
nilai
-
Rp370.000.000 per bulan dari November 2014
sampai dengan Oktober 2017.
sebesar Rp200.000.000
angsuran
On December 1, 2014, CDC and SHS agreed to
amend the contract. The amendmend points are:
- Elimination of penalty arise from payment delay
after November 1, 2013. Penalty charged which
has been recognized until October 31, 2013 is
amounting Rp1,825,325,895.
- Term of agreement is extended to be 36 months
until October 2017.
As of December 31, 2015, loan and penalties
balances by SHS of Rp9.637.640.363 (2014:
9.687.740.363)
installed by
Rp200,000,000 - Rp370,000,000 per month started
from November 2014 to October 2017.
of which are
Bank UMKM Jatim
Bank UMKM Jatim
Pada
tanggal 14 November 2014, CDC
menandatangani perjanjian No. Tel.529/ HK810/
CDC - A1010000/ 2014 dengan PT Bank BPR
Jatim Bank UMKM Jawa Timur (“Bank UMKM
Jatim”) dan PT Finnet Indonesia untuk penyaluran
dana Program Kemitraan yang akan disalurkan
melalui Bank UMKM Jatim. PT Finnet Indonesia
menyediakan akun virtual yang digunakan sebagai
media pembayaran bagi mitra binaan. Perjanjian
berlaku selama 2 tahun, mulai dari November 2014
dan berakhir pada November 2016. Nilai pinjaman
sejumlah Rp10.000.000.000 dan telah disalurkan
seluruhnya oleh CDC kepada Bank UMKM Jatim
pada bulan Desember 2014. Saldo pinjaman per
31 Desember 2015 adalah Rp4.999.999.996.
for
On November 14, 2014, CDC entered into an
agreement No. Tel.529/ HK810/ CDC - A1010000/
2014 with PT Bank BPR Jatim Bank UMKM Jawa
(Bank UMKM Jatim) and PT Finnet
Timur
Indonesia
the distribution of Partnership
Program funds, which all will be distributed by
PT Bank UMKM Jatim. PT Finnet
Indonesia
provides the virtual accounts for media of payment
for each foster partner. This contract is valid for
2 years, starting
from November 2014 until
November 2016. The loan of Rp10,000,000,000
has been fully distributed by CDC to Bank UMKM
Jatim on December 2014. The balance of this loan
as at December 31, 2015 is Rp4,999,999,996.
17
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
5. PINJAMAN
KEPADA
LAIN/LEMBAGA PENYALUR (lanjutan)
BUMN
PEMBINA
5. LOAN TO OTHER FOSTER SOE/ DISTRIBUTING
PARTNERS (continued)
Baitul Maal Wat Tamwil Hidayah (BMT Hidayah)
Baitul Maal Wat Tamwil Hidayah (BMT Hidayah)
(penjamin)
tanggal 27 September 2011, CDC
Pada
menandatangani perjanjian nomor K.Tel.821/
HK810/CDC-A1050000/2011 dengan Baitul Maal
Wat Tamwil Hidayah
(BMT Hidayah) untuk
penyaluran dana program kemitraan kepada
komunitas konveksi batik dan pengrajin lidi, yang
disalurkan melalui BMT Hidayah. Perjanjian berlaku
selama 2 tahun, mulai tahun 2011 sampai dengan
tahun 2013, dengan nilai plafon penyaluran
pinjaman
sebesar Rp2.200.000.000. Dalam
perjanjian, BMT Hidayah yang bertindak sebagai
avalist
menjamin
pengembalian pinjaman dengan coverage ratio
minimal 50% dari nilai plafon penyaluran pinjaman
atau sebesar Rp1.100.000.000. Sehubungan
tersebut, dalam surat pernyataan
dengan hal
pengikatan penjaminan tanggal 6 Oktober 2011,
BMT Hidayah menjaminkan sebidang tanah atas
nama Drs Muhammad Hery Ngatiri, S.Ag sebagai
Ketua BMT Hidayah yang berlokasi di Kelurahan
Sangkrah, Kecamatan Pasar Kliwon Kota
Surakarta seluas 91 M2. Saldo pinjaman per 31
Desember 2015 adalah Rp1.806.768.715 (2014:
Rp1.806.768.715) yang telah jatuh tempo pada
November 2013.
bersedia
In was agreed
On September 27, 2011, CDC signed a contract
No. K.Tel.821/CDC-A1050000/2011 with Baitul
Maal Wat Tamwil Hidayah (BMT Hidayah) for the
distribution of Partnership Program funds for batik
garment communities and broom stick craftsmen.
These fund were distributed through BMT Hidayah.
The contract was valid for 2 years, from 2011 to
2013, with a maximum amount to be distributed of
Rp2,200,000,000.
that, BMT
Hidayah, who acts as a guarantor, guarantees the
from the
repayment of, at a minimum, 50%
maximum
or
to
Rp1,100,000,000. In the collateral letter dated
October 6, 2011, BMT Hidayah pledged a parcel of
land owned by Drs Muhammad Hery Ngatiri. S.Ag
(the Chairman of BMT Hidayah in Kelurahan
Sangkrah, Kecamatan Pasar Kliwon, Surakarta)
with an area of 91 sqm.The balance of this loan as
at December 31, 2015 is Rp1,806,768,715 (2014:
Rp1,806,768,715) which was due to be paid on
November 2013.
distributed,
amount
be
6. PINJAMAN KEPADA MITRA BINAAN
6. LOAN TO FOSTER PARTNERS
a. Pinjaman Kepada Mitra Binaan Menurut
a. Loan to Foster Partners Classified by
Community Development (CD) Area
Community Development (CD) Area
Pinjaman kepada Mitra Binaan
31 Desember/December 31,
2015
2014
CD Area I Sumatera
CD Area II DKI Jakarta & Banten
CD Area III Jabar
CD Area IV Jateng & DIY
CD Area V Jatim & Madura
CD Area VI Kalimantan
CD Area VII Kawasan Timur Indonesia 47.944.585.670
113.328.491.852 118.344.350.433
80.916.609.472 71.913.682.894
71.361.969.771
51.091.489.742
76.791.470.846
53.011.559.882
64.048.113.161
86.948.859.417
63.700.890.582
111.741.448.694
63.823.658.079
Loan to Foster Partners
CD Area I Sumatera
CD Area II DKI Jakarta & Banten
CD Area III Jabar
CD Area IV Jateng & DIY
CD Area V Jatim & Madura
CD Area VI Kalimantan
CD Area VII Kawasan Timur Indonesia
Jumlah
Penyisihan Penurunan Nilai Pinjaman (109.770.010.235)
568.404.543.766 506.562.636.729
(93.864.820.863)
Total
Allowance for Impairment of Loan
Jumlah Pinjaman kepada Mitra
Binaan - Neto
458.634.533.531 412.697.815.866
Total Loan to Foster Partners - Net
18
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
6. PINJAMAN KEPADA MITRA BINAAN (lanjutan)
6. LOAN TO FOSTER PARTNERS (continued)
b. Pinjaman kepada Mitra Binaan Menurut
b. Loan to Foster Partners Classified by
Sektor
Sector
31 Desember/December 31,
2015
2014
Pinjaman kepada Mitra Binaan
Loan to Foster Partners
Perdagangan
Industri
Jasa
Peternakan
Perikanan
Pertanian
Perkebunan
Lainnya
304.331.486.357
99.370.872.724
98.645.546.666
23.910.726.099
17.828.682.810
11.237.819.444
9.962.750.485
3.116.659.181
260.536.906.022
93.167.857.336
94.585.494.743
21.275.133.231
15.848.898.783
9.404.501.501
8.309.374.775
3.434.470.338
Trading
Industry
Service
Farming
Fishing
Agriculture
Plantation
Others
Jumlah
Penyisihan Penurunan Nilai Pinjaman (109.770.010.235)
568.404.543.766 506.562.636.729
(93.864.820.863)
Total
Allowance for Impairment of Loan
Jumlah Pinjaman kepada Mitra
Binaan - Neto
458.634.533.531 412.697.815.866
Total Loan to Foster Partners - Net
berpendapat
Manajemen
saldo
penyisihan penurunan nilai pinjaman cukup
untuk menutup kerugian atas tidak tertagihnya
pinjaman.
bahwa
Management believes
the balance of
allowance for impairment of loan is adequate to
cover losses from the uncollectible loan.
that
c. Pendapatan Jasa Administrasi Pinjaman
c. Loan Administration Service Income
pendapatan
jasa
Besarnya
prosentase
administrasi pinjaman
program kemitraan
terhitung sejak tahun buku 2008 berdasarkan
pada ketentuan pasal 12 ayat (2) Peraturan
Menteri BUMN Nomor: PER-05/MBU/2007
tanggal 17 April 2007 sebesar 6% (enam
persen) per tahun dari pokok pinjaman.
Berdasarkan PER-09/MBU/07/2015
yang
efektif tanggal 3 Juli 2015, besarnya jasa
administrasi pinjaman adalah sebesar 6%
(enam persen) per tahun dari saldo pinjaman
awal tahun.
Since 2008, the percentage of administration
service income of loan for partnership program
was based on the Decree on article 12 (2) of
The Regulation of SOE Ministries No: PER-
05/MBU/2007 dated April 17, 2007, which is
6% per annum from the principal of the loan.
Based on Decree on article 11 (2) of The
Regulation of SOE Ministries No: PER-
09/MBU/07/2015
2015,
dated
administration service
is 6% per
annum from the beginning balance.
July
income
3,
d. Penyisihan Pinjaman Kepada Mitra Binaan
d. Allowance for Impairment of Loan to Foster
Partners
Mutasi penyisihan penurunan nilai pinjaman
adalah sebagai berikut:
Movement of allowance for impairment of loan
is as follow:
31 Desember/December 31,
2015
2014
Saldo awal
Penambahan - Neto
Reklasifikasi sebagai bermasalah (4.899.833.827)
93.864.820.863
20.805.023.199
69.770.078.111
28.923.380.143
(4.828.637.391)
Beginning balance
Additional - Net
Reclassification as troubled loan
109.770.010.235
93.864.820.863
19
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
6. PINJAMAN KEPADA MITRA BINAAN (lanjutan)
6. LOAN TO FOSTER PARTNERS (continued)
e. Alokasi Penyisihan Penurunan Nilai
e. Allocation of Allowance for Impairment of
Pinjaman
Loan
31 Desember 2014/December 31, 2015
Umur Pinjaman
(dari jatuh tempo)/
Loan Aging
(from maturity date)
Saldo Pinjaman/ Penyisihan/
Allowance
%
Loan
Balance
%
Akumulasi
Penyisihan
2015/
Accumulated
Allowance
2015
Beban/
(Pemulihan)
Penyisihan
2015
Expense/
(Recovery)
Allowance
2015
> 270 hari/ > 270 days
11.444.509.078
100%
11.444.509.078
(50.000.000)
< 30 hari/ < 30 days
4.999.999.996
0,00%
-
(113.420.000)
16.444.509.074
11.444.509.078
(163.420.000)
_
Loan Quality
_
Other Foster SOE/
Distributing Partners
Individual assessment
Loss
Current
Sub total
Foster Partners
Collective assessment
< 30 hari/ < 30 days
416.369.708.952
0,87%
3.624.415.611
(574.797.294)
Current
34.226.922.072
9,50%
3.250.690.745
1.981.050.405
Substandard
> 30 hari < 180 hari/
>30 days < 180 days
> 180 hari < 270 hari/
> 180 days < 270 days
18.242.353.104
18,16%
3.312.944.241
2.275.955.549
> 270 hari/ > 270 days
99.581.959.638
100,00%
99.581.959.638
12.222.980.712
568.420.943.766
109.770.010.235
15.905.189.372
82.673.017.234
100%
82.673.017.234
4.899.833.827
667.538.470.074
203.887.536.547
20.641.603.199
31 Desember 2014/December 31, 2014
Umur Pinjaman
(dari jatuh tempo)/
Loan Aging
(from maturity date)
Saldo Pinjaman/ Penyisihan/
Allowance
%
Loan
Balance
%
Akumulasi
Penyisihan
2014/
Accumulated
Allowance
2014
Beban/
(Pemulihan)
Penyisihan
2014
Expense /
(Recovery)
Allowance
2014
Doubtful
Loss
Sub total
Troubled
Total
_
Loan Quality
_
Other Foster SOE/
Distributing Partners
Individual assessment
< 30 hari/ < 30 days
10.600.000.000
1,07%
113.420.000
113.420.000
22.094.509.078
11.607.929.078
1.704.854.653
Collective assessment
Current
Sub total
Foster Partners
Collective assessment
< 30 hari/ < 30 days
392.449.804.275
1,07%
4.199.212.905
2.551.241.616
Current
> 30 hari < 180 hari/
>30 days < 180 days
> 180 hari < 270 hari/
> 180 days < 270 days
19.931.559.504
6,37%
1.269.640.340
(2.114.105.611)
Substandard
6.822.294.024
15,20%
1.036.988.692
(2.011.896.927)
Kualitas Pinjaman
BUMN Pembina lain/ Lembaga
Penyalur
Dinilai secara individual
Macet
Lancar
Sub Jumlah
Mitra Binaan
Dinilai secara kolektif
Lancar
Kurang lancar
Diragukan
Macet
Sub Jumlah
Bermasalah
Jumlah
Kualitas Pinjaman
BUMN Pembina lain/ Lembaga
Penyalur
Dinilai secara individual
Dinilai secara kolektif
Lancar
Sub Jumlah
Mitra Binaan
Dinilai secara kolektif
Lancar
Kurang lancar
Diragukan
Macet
> 270 hari/ > 270 days
11.494.509.078
100%
11.494.509.078
1.591.434.653
Loss
Macet
> 270 hari/ > 270 days
87.358.978.926
100,00%
87.358.978.926
25.669.503.674
Sub Jumlah
Bermasalah
Jumlah
506.562.636.729
93.864.820.863
24.094.742.752
77.773.183.407
100,00%
77.773.183.407
4.828.637.391
606.430.329.214
183.245.933.348
30.628.234.796
20
Doubtful
Loss
Sub total
Troubled
Total
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
7. ASET TETAP TIDAK BERFUNGSI
7. FIXED ASSET NOT IN USE
Mutasi Tahun 2015
Harga Perolehan
Komputer
Inventaris Kantor
Jumlah Harga Perolehan
Akumulasi Penyusutan
Komputer
Inventaris Kantor
Jumlah Akumulasi Penyusutan
Nilai Buku
Mutasi Tahun 2014
Harga Perolehan
Komputer
Inventaris Kantor
Jumlah Harga Perolehan
Akumulasi Penyusutan
Komputer
Inventaris Kantor
Jumlah Akumulasi Penyusutan
Nilai Buku
Saldo Awal
1 Jan 2015/
Movement 2015
Saldo Akhir
31 Des 2015/
Beginning Balance
Jan 1, 2015
Penambahan/
Addition
Pengurangan/
Disposal
Ending Balance
Dec 31, 2015
29.862.600
54.054.050
83.916.650
(29.862.600)
(54.054.050)
(83.916.650)
-
Saldo Awal
1 Jan 2014/
Beginning Balance
Jan 1, 2014
Penambahan/
Addition
29.862.600
54.054.050
83.916.650
(29.862.600)
(54.054.050)
(83.916.650)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29.862.600
54.054.050
83.916.650
(29.862.600)
(54.054.050)
Acquisition Cost
Computer
Office Equipment
Total Acquisition Cost
Accumulated Depreciation
Computer
Office Equipment
(83.916.650)
Total Accumulated Depreciation
-
Book Value
Movement 2014
Pengurangan/
Disposal
Saldo Akhir
31 Des 2014/
Ending Balance
Dec 31, 2014
-
-
-
-
-
-
-
29.862.600
54.054.050
83.916.650
(29.862.600)
(54.054.050)
Acquisition Cost
Computer
Office Equipment
Total Acquisition Cost
Accumulated Depreciation
Computer
Office Equipment
(83.916.650)
Total Accumulated Depreciation
-
Book Value
In relation to fixed assets with nil book value, SGM
CDC sent Letter Number: Tel. 243/KU710/CDC-
A1000000/2012 dated November 19, 2012 to the
Ministry of SOE requesting for Approval to write-off
PKBL Telkom Unit’s fixed asset. However, until the
completion date of the financial statement, this
approval has not been received.
Terkait dengan aset tetap yang nilai bukunya telah
nihil tersebut di atas, SGM CDC telah mengirim
Surat kepada Kementerian BUMN dengan Nomor:
Tel.243/ KU710/ CDC - A1000000/ 2012 tanggal
19 November 2012, perihal Permohonan
Ijin
Penghapusan Aset Tetap Unit PKBL Telkom
tersebut. Namun demikian sampai dengan tanggal
penyelesaian laporan keuangan belum diperoleh
izin penghapusan tersebut.
21
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
8. PINJAMAN BERMASALAH
8. TROUBLED LOAN
Pinjaman mitra binaan bermasalah pada tanggal
31 Desember 2015 dan 2014 berdasarkan CD
Area adalah sebagai berikut:
Troubled loan from foster partners as at December
31, 2015 and 2014 by CD Area is as follow:
31 Desember/December 31,
2015
2014
CD Area I Sumatera
CD Area II DKI Jakarta & Banten
CD Area III Jabar
CD Area IV Jateng & DIY
CD Area V Jatim & Madura
CD Area VI Kalimantan
CD Area VII Kawasan Timur Indonesia
22.045.423.531
8.507.721.907
9.667.473.840
7.608.245.571
9.446.672.858
8.939.010.806
18.388.793.403
8.185.349.337
9.756.027.306
6.386.473.495
6.556.899.010
8.700.797.226
16.458.468.721 19.798.843.630
CD Area I Sumatera
CD Area II DKI Jakarta & Banten
CD Area III Jabar
CD Area IV Jateng & DIY
CD Area V Jatim & Madura
CD Area VI Kalimantan
CD Area VII Kawasan Timur Indonesia
Jumlah
Penyisihan Pinjaman Bermasalah
82.673.017.234
(82.673.017.234)
77.773.183.407
(77.773.183.407) Allowance for Impairment of Troubled Loan
Total
Jumlah Pinjaman Bermasalah - Neto
-
-
Troubled Loan Distribution - Net
telah mengusulkan
Terkait dengan pinjaman mitra binaan bermasalah
tersebut, CDC
kepada
Kementerian Badan Usaha Milik Negara untuk
dihapusbukukan yaitu sebesar Rp2.027.201.023
merupakan saldo pinjaman program kemitraan atas
nama 253 Mitra Binaan di Nangroe Aceh
Darussalam (NAD) yang terkena musibah bencana
alam gempa bumi dan tsunami bulan Desember
2004 melalui surat sebagai berikut:
1) Surat dari Kadivre I Sumatera yang ditujukan
kepada PT Pupuk Iskandar Muda/ Koordinator
BUMN Pembina Provinsi NAD No. Tel. 807/
tanggal 22 Agustus
UM 550/RE1-123/2005
2005 perihal Usulan Penghapusan Pinjaman
MB di NAD.
2) Surat dari Deputy Kadivre I Sumatera yang
ditujukan kepada Koordinator BUMN Pembina
PUK Provinsi Nusantara - PT Perkebunan
Nusantara No. Tel.901/UM 550/RE1-123/2005
tanggal 22 Desember 2005 perihal Konfirmasi
Usulan Penghapusan Pinjaman Mitra Binaan
di NAD.
3) Surat Kapus Telkom CDC yang ditujukan
kepada Asisten Deputi Urusan Informasi dan
Administrasi Kekayaan BUMN No. Tel.125/
PR000/ CDC - 00/2006 tanggal 10 Februari
2006 perihal Data Penghapusan Pinjaman
Mitra Binaan di NAD.
22
Enterprises
In relation to such troubled loan from foster
partners, CDC has proposed to Ministry of State-
to write-off
Owned
Rp2,027,201,023 which
loan of
partnership program for 253 Foster Partners in
Nangroe Aceh Darussalam (NAD) who suffered
earthquake and tsunami on December 2004
through the letters, as follows:
represents
(SOE)
1) Letter from Kadivre I Sumatera that was sent
to PT Pupuk Iskandar Muda/Koordinator SOE
Pembina Provinsi NAD No. Tel. 807/UM
550/RE1-123/2005 dated August 22, 2005
regarding Foster Partners Loan Write-off
Proposal in NAD.
2) Letter from Deputy Kadivre I Sumatera that is
sent to the Foster SOE Coordinator of PUK
Provinsi Nusantara
- PT Perkebunan
Nusantara No. Tel. 901/UM 550/RE1-123/
2005 dated December 22, 2005 regarding the
Confirmation of Foster Partners Loan Write-off
Proposal in NAD.
3) Letter from Head Office Telkom CDC which is
sent to the Deputy Assistant for Information
and SOE’s Administration Asset No. Tel. 125/
PR000/CDC-00/2006 dated February 10,
2006 regarding Foster Partners Loan Write -
off Data in NAD.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
8. PINJAMAN BERMASALAH (lanjutan)
8. TROUBLED LOAN (continued)
Melalui Surat dari Senior General Manager CDC
No. Tel 790/ UM.550/ CDC.00000001/ 2011
tanggal 12 September 2011 yang ditujukan kepada
Asisten Deputi Pembinaan PKBL perihal Usulan
Penghapusan Pinjaman Bermasalah Mitra Binaan
TCDC, CDC mengajukan usulan penghapusan
pinjaman bermasalah untuk 4.327 mitra binaan
senilai Rp34.978.803.737.
tersebut
merupakan akumulasi dari pengajuan yang
sebelumnya diajukan.
Jumlah
Melalui Surat dari PGS Senior General Manager
CDC No. Tel 573/UM.550/ CDC-A100000/2013
tanggal 23 Oktober 2013 yang ditujukan kepada
Deputi Bidang Restrukturisasi dan Perencanaan
Strategis BUMN, CDC kembali mengajukan usulan
penghapusan pinjaman bermasalah untuk 3.541
mitra binaan senilai Rp26.182.641.326. Jumlah
tersebut merupakan akumulasi dari pinjaman mitra
binaan periode tahun mulai dari Januari 2011
hingga Desember 2012.
Kemudian, melalui Surat dari PGS Senior General
Manager CDC No. Tel 630/PS.370/ CDC-
A1000000/2014 tanggal 30 Desember 2014 yang
ditujukan kepada Deputi Bidang Restrukturisasi
dan Perencanaan Strategis BUMN, CDC kembali
mengajukan
pinjaman
bermasalah untuk 2.602 mitra binaan senilai
Rp18.714.804.819. Jumlah tersebut merupakan
penambahan dari pinjaman mitra binaan periode
tahun 2003 hingga Desember 2013.
penghapusan
usulan
tanggal penyelesaian
laporan
Sampai dengan
keuangan, pengajuan atas penghapusbukuan
pinjaman
belum memperoleh
bermasalah
persetujuan dari Kementerian BUMN.
Through Letter from Senior General Manager CDC
No. Tel 790/ UM.550/ CDC.0000001/ 2011 dated
September 12, 2011 which was addressed to the
regarding
Deputy Assistant Fostering PKBL
Troubled Loan Foster Partners TCDC Write-off
proposal, CDC proposed the write-off of troubled
loan
to
Rp34,978,803,737. This amount represents the
accumulation from previous proposal.
for 4,327 Foster Partners amounted
Through Letter from Senior General Manager CDC
No. Tel 573/UM.550/CDC-A100000/2013 dated
October 23, 2013 which was addressed to the
Deputy Restructuring and Strategic Planning of
SOE, CDC re-propose loan writing off for troubled
loan
to
Rp26,182,641,326. This amount represents the
accumulation from previous foster partner’s loan
since January 2011 until December 2012.
foster partners amounted
for 3,541
Thereafter, through Letter from Temporary Senior
General Manager CDC No. Tel 630/PS.370/ CDC-
A1000000/2014 dated December 30, 2014 which
was addressed to the Deputy Restructuring and
Strategic Planning of SOE, CDC re-propose loan
writing off for troubled loan for 2,602 foster partners
to Rp18,714,804,816. This amount
amounted
represents the accumulation from previous foster
partner’s loan since 2003 until December 2013.
Until the completion date of the financial statement,
the proposal to write-off for the troubled loan has
not been approved by the Ministry of SOE.
9. LIABILITAS LANCAR LAINNYA
9. OTHER CURRENT LIABILITIES
31 Desember/December 31,
2015
2014
PT Bank Rakyat Indonesia
(Persero) Tbk
PT Pos Indonesia (Persero) Tbk
Perusahaan Perseroan
PT Telekomunikasi
Indonesia Tbk
PT Perkebunan Nusantara VIII
PT Industri Nuklir Indonesia (Persero)
5.691.103.171
3.371.533.422
1.161.114.697
489.694.586
259.501.179
Jumlah liabilitas lancar lainnya
10.972.947.055
PT Bank Rakyat Indonesia
(Persero) Tbk
PT Pos Indonesia (Persero) Tbk
Perusahaan Perseroan
PT Telekomunikasi
Indonesia Tbk
PT Perkebunan Nusantara VIII
PT Industri Nuklir Indonesia (Persero)
Total other current liabilities
-
-
-
-
-
-
23
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
9. LIABILITAS LANCAR LAINNYA (lanjutan)
9. OTHER CURRENT LIABILITIES (continued)
Pengembalian dana Program BUMN Peduli
Refunds of SOE Care Program
liabilitas
Saldo
lancar dari PT Bank Rakyat
Indonesia, PT Pos Indonesia dan PT Industri Nuklir
Indonesia adalah pengembalian dana BUMN
Peduli yang laporan pelaksanaannya masih dalam
proses evaluasi oleh CDC yang sampai dengan
tanggal 31 Desember 2015 masih dalam proses
penyelesaian.
Other current liabilities from PT Bank Rakyat
Indonesia, PT Pos Indonesia and PT Industri Nuklir
Indonesia represent repayments of remaining
funds from SOE Care Program in which the
realization reports are still being evaluated by CDC
and until December 31, 2015 are stil in progress.
Perusahaan Perseroan PT Telekomunikasi
Indonesia Tbk
Perusahaan Perseroan PT Telekomunikasi
Indonesia Tbk
Keputusan
Indonesia
Komisaris
Berdasarkan
PT Telekomunikasi
(Persero) Tbk
No. 17/KEP/DK/2014/RHS tanggal 10 Desember
2014, besaran dana PKBL untuk tahun 2015
adalah sebagai berikut:
a) Program kemitraan sebesar Rp 0;
lingkungan
b) Program
bina
Rp82.000.000.000
sebesar
Tbk
Decree
(Persero)
Based on Commisioners of PT Telekomunikasi
Indonesia
No.
17/KEP/DK/2014/RHS dated December 10, 2014,
the amount of Partnership and Community
Development Programs Funds for 2015 is as
follow:
a) Partnership program amounting Rp 0;
b) Community development program amounting
Rp82,000.000,000
Sehingga total alokasi bagian laba dari BUMN
Pembina adalah sebesar Rp82.000.000.000. Dana
alokasi tersebut diterima oleh CDC pada bulan
Februari, Maret, Oktober dan Desember 2015.
The total of profit allocation from the Foster SOE
was Rp82,000,000,000. The allocated fund has
been received by CDC on February, March,
October and December 2015.
Selama tahun 2015, realisasi penyaluran dana
program bina
lingkungan adalah sebesar Rp
72.410.726.781 dan biaya operasional PKBL
adalah sebesar Rp8.428.158.522. Sehingga sisa
lingkungan yang belum digunakan
dana bina
sebesar Rp1.161.114.697 dan akan menjadi
sumber dana program bina lingkungan Telkom
tahun 2016.
During 2015, realization for fund distribution for
community development program amounted to Rp
72,410,726,781 and operational expenses
is
Rp8,428,158,522. Therefore, the remaining funds
is Rp1,161,114,697 and will be the source of funds
for community development program in 2016.
10. BEBAN AKRUAL
10. ACCRUED EXPENSES
Beban akrual merupakan beban atas
jasa
pekerjaan survei opini dan CSR Index untuk tahun
2014 yang dilakukan oleh PT Infomedia Nusantara,
pihak berelasi. CDC melakukan pembayaran atas
transaksi ini pada tanggal 13 Maret 2015.
Accrued expenses represent expense for opinion
survey and CSR Index engagement for the year
2014 provided by PT Infomedia Nusantara, a
related party. This has been paid by CDC on March
13, 2015.
11. ANGSURAN BELUM TERIDENTIFIKASI
11. UNIDENTIFIED INSTALLMENTS
Saldo Awal
Teridentifikasi selama tahun berjalan
Angsuran tahun berjalan yang belum
teridentifikasi
Saldo Akhir
31 Desember/December 31,
2015
2014
121.047.323
69.537.340
(141.876.560) (67.290.018)
487.888.686
118.800.001
Beginning Balance
Identified during the year
Unidentified Installment
during the year
467.059.449
121.047.323
Ending Balance
24
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
12. KELEBIHAN PEMBAYARAN ANGSURAN
12. OVERPAYMENT OF INSTALLMENTS
31 Desember/December 31,
2015
2014
Kelebihan Pembayaran Angsuran
158.652.706
1.313.285.449
Overpayment of Installments
13. UTANG LAIN - LAIN
13. OTHER PAYABLE
Rincian utang lain-lain pada tanggal 31 Desember
2015 dan 2014 adalah sebagai berikut:
Detail of other payable as of December 31, 2015
and 2014 are as follows:
PT PINS Indonesia
PT Finnet Indonesia
Saldo Akhir
31 Desember/December 31,
2015
2014
107.046.500
12.500.000
467.720.000
-
119.546.500
467.720.000
PT PINS Indonesia
PT Finnet Indonesia
Ending Balance
PT PINS Indonesia
PT PINS Indonesia
Utang kepada PT PINS Indonesia, pihak berelasi,
adalah atas transaksi pengadaan untuk penyaluran
program bina lingkungan.
Payable to PT PINS Indonesia, related party,
for
procurement
represents
community development funds distribution.
transactions
PT Finnet Indonesia
PT Finnet Indonesia
PT Finnet Indonesia menyediakan akun virtual yang
digunakan sebagai media pembayaran bagi mitra
binaan dalam sinergi penyaluran CDC dengan
Bank UMKM. Atas jasa ini, PT Finnet Indonesia
memperoleh Rp12.500.000 per bulan sebagai
biaya penagihan.
PT Finnet Indonesia provides services to provice
virtual accounts which are used in the Company’s
agreement with Bank UMKM as tools of payment
for Bank UMKM’s foster partners to pay their
receives
monthly
Rp12,500,000 each month as collection fee.
installment.
Finnet
PT
14. ASET NETO
14. NET ASSETS
31 Desember/December 31,
2015
2014
Aset Neto Tidak Terikat
Aset Neto Terikat
(571.428.772.792) 584.874.399.174
-
-
Unrestricted Net Assets
Restricted Net Assets
Jumlah
(571.428.772.792) 584.874.399.174
Total
Mutasi Aset Neto
Movement of Net Asset
Aset Neto Tidak Terikat
31 Desember/December 31,
2015
2014
Aset Neto Tidak Terikat - Awal Tahun 584.874.399.174 590.788.927.408
(5.914.528.234)
Penurunan Aset Neto Tidak Terikat
(13.445.626.382)
____
Unrestricted Net Asset
Unrestricted Net Asset - Beginning of Year
Decrease in Unrestricted Net Asset profit
Aset Neto Tidak Terikat - Akhir Tahun
571.428.772.792 584.874.399.174
Unrestricted Net Asset - End of Year
25
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
15. PENDAPATAN JASA ADMINISTRASI PINJAMAN
15. LOAN ADMINISTRATION SERVICE INCOME
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2015
2014
CDC Pusat
CD Area I Sumatera
CD Area II DKI Jakarta & Banten
CD Area III Jabar
CD Area IV Jateng & DIY
CD Area V Jatim & Madura
CD Area VI Kalimantan
CD Area VII Kawasan Timur Indonesia
150.000.000
3.691.762.709
2.292.422.961
2.652.856.629
2.028.006.708
3.539.389.210
2.217.056.647
1.303.078.654
175.000.000
9.030.618.752
4.909.470.238
4.680.382.353
4.840.556.914
5.444.853.683
4.906.855.318
4.893.894.183
Center of CDC
CD Area I Sumatera
CD Area II DKI Jakarta & Banten
CD Area III Jabar
CD Area IV Jateng & DIY
CD Area V Jatim & Madura
CD Area VI Kalimantan
CD Area VII Kawasan Timur Indonesia
Jumlah
17.874.573.518
38.881.631.441
Total
16. PENDAPATAN BUNGA
a. Program Kemitraan
16. INTEREST INCOME
a. Partnership Program
Deposito
Jasa Giro
Jumlah
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2015
2014
338.597.266
1.228.105.856
8.519.569.257
1.136.831.050
1.566.703.122
9.656.400.307
b. Bina Lingkungan
b. Community Development
Deposito
Jasa Giro
Jumlah
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2015
2014
1.936.865.578
1.111.408.005
6.667.017.261
472.730.638
3.048.273.583
7.139.747.899
17. PENDAPATAN LAIN-LAIN
17. OTHER INCOME
Deposits
Current Account
Total
Deposits
Current Account
Total
Program Kemitraan
Bina Lingkungan
Jumlah
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2015
2014
-
31.206.191
1.825.352.893
3.413.540.333
31.206.191
5.238.893.226
26
Partnership Program
Community Development
Total
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
18. DANA PEMBINAAN KEMITRAAN
18. FOSTERING PARTNERSHIP FUNDS
Pameran/Promosi
Pelatihan
Pengembangan
Jumlah
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2015
2014
3.061.151.199
2.929.825.648
23.500.000
6.691.314.477
7.449.581.566
1.153.820.750
6.014.476.847
15.294.716.793
Exhibition/ Promotion
Training
Development
Total
Efektif 3 Juli 2015, terkait dengan implementasi
PER-09/MBU/07/2015, dana pembinaan program
kemitraan menjadi beban BUMN Pembina (Catatan
3a dan 19) sehingga CDC hanya mencatat dana
pembinaan program kemitraan untuk periode 1
Januari 2015 sampai 2 Juli 2015.
in
relation
Effective July 3, 2015,
the
implementation of PER-09/MBU/07/2015, fostering
partnership expenses of CDC will be recognized by
Foster SOE (Note 3a and 19), therefore CDC only
recorded fostering partnership expenses for period
January 1, 2015 until July 2, 2015.
to
19. PENYALURAN DANA BINA LINGKUNGAN
19. COMMUNITY
DEVELOPMENT
FUNDS
DISTRIBUTION
Efektif 1 Januari 2013, terkait dengan implementasi
lagi mencatat
PER-08/MBU/2013, CDC
penyaluran dana bina lingkungan sebagai beban
CDC (Catatan 3a).
tidak
Effective January 1, 2013,
to the
implementation of PER-08/MBU/2013, CDC has no
longer recognized community development funds
distribution as expense of CDC (Note 3a).
in relation
in
relation
Effective July 3, 2015,
the
implementation of PER-09/MBU/07/2015, CDC has
no longer recognized fostering partnership funds
as expense of CDC (Note 3a), therefore CDC only
recorded fostering partnership fund for period
January 1 to July 2, 2015.
to
During 2015 and 2014, CDC on behalf of and for
the benefit of Telkom Group has distributed
funds.
community
community development distribution and
its
operational expense which are not included in
CDC’s financial statements as are follows:
development
programs
Efektif 3 Juli 2015, terkait dengan implementasi
PER-09/MBU/07/2015, beban operasional program
kemitraan menjadi beban BUMN Pembina (Catatan
3a) sehingga CDC hanya mencatat beban
pembinaan program kemitraan untuk periode 1
Januari 2015 sampai 2 Juli 2015.
Selama tahun 2015 dan 2014, CDC atas nama dan
untuk kepentingan Grup Telkom, telah melakukan
penyaluran program bina
lingkungan untuk
berbagai kegiatan. Penyaluran bina lingkungan dan
beban operasional yang tidak termasuk ke dalam
laporan keuangan CDC adalah sebagai berikut:
27
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
19. PENYALURAN DANA BINA LINGKUNGAN
19. COMMUNITY
DEVELOPMENT
FUNDS
(lanjutan)
DISTRIBUTION (continued)
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2015
2014
Bantuan Bina Lingkungan
Bantuan Pendidikan dan/atau Pelatihan
Bantuan Pengembangan Prasarana
dan/ atau Sarana Umum
Bantuan Sarana Ibadah
Bantuan Peningkatan Kapasitas Mitra
Binaan Program Kemitraan
Bantuan Peningkatan Kesehatan
Bantuan Korban Bencana Alam
Bantuan Pelestarian Alam
Bantuan Pengentasan Kemskinan
41.150.756.851 40.826.871.147
15.734.881.300
8.467.194.000
9.432.252.116
16.232.115.500
3.525.756.880
1.467.383.000
1.305.604.750
750.150.000
9.000.000
-
8.488.050.000
4.367.923.213
795.937.000
1.043.670.000
Community Development Donation
Education and/or Training Donation
Improvement for Facility and/or
Public Facility Donation
Religion Facility Donation
Capacity Improvement Donation
to Foster Partners
Healthcare Improvement Donation
Nature Disaster Victims Donation
Natural Preservation Donation
Poverty Donation
Jumlah Program Bantuan
Bina Lingkungan
Beban Operasional
Program Kemitraan
Program Bina Lingkungan
72.410.726.781
81.186.818.976
Total Community Development Program
6.995.965.895
1.432.192.627
-
1.617.955.050
Partnership program
Community Development program
Operational Expense
Jumlah
80.838.885.303
82.804.774.026
Total
20. BEBAN PEMBINAAN
20. EMPOWERMENT EXPENSES
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2015
2014
Beban Monitoring Mitra Binaan
Beban Penagihan Pinjaman
Beban Survei Calon Mitra Binaan
939.110.018
845.059.144
505.711.483
2.734.882.824
1.387.296.323
979.328.533
Foster Partners Monitoring Expenses
Loan Collection Expenses
Foster Partners Survey Expenses
Jumlah
2.289.880.645
5.101.507.680
Total
of
in
relation
the
Effective July 3, 2015,
implementation
PER-09/MBU/07/2015,
operational expenses of CDC will be recognized by
Foster SOE (Note 3a and 19), therefore CDC only
recorded empowerment expenses from January 1,
2015 until July 2, 2015.
to
Efektif 3 Juli 2015, terkait dengan implementasi
PER-09/MBU/07/2015, beban operasional program
kemitraan menjadi beban BUMN Pembina (Catatan
3a dan 19) sehingga CDC hanya mencatat beban
pembinaan program kemitraan untuk periode 1
Januari 2015 sampai 2 Juli 2015.
28
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
21. BEBAN ADMINISTRASI DAN UMUM
21. GENERAL AND ADMINISTRATION EXPENSES
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2015
2014
Program Kemitraan
5.584.101.195
12.985.184.323
Partnership Program
Efektif 3 Juli 2015, terkait dengan implementasi
PER-09/MBU/07/2015, beban operasional program
kemitraan menjadi beban BUMN Pembina (Catatan
3a dan 19). Sehingga, CDC hanya mencatat beban
administrasi dan umum untuk periode 1 Januari
2015 sampai 2 Juli 2015.
in
of
to
relation
the
Effective July 3, 2015,
implementation
PER-09/MBU/07/2015,
operational expenses of Partnership Program will
be recognized by Foster SOE (Note 3a and 19),
therefore CDC only
recorded general and
administration expenses from January 1, 2015 until
July 2, 2015.
22. BEBAN SEWA
22. RENT EXPENSES
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2015
2014
Program Kemitraan
1.436.320.910
2.821.557.515
Partnership Program
Efektif 3 Juli 2015, terkait dengan implementasi
PER-09/MBU/07/2015, beban operasional PKBL
menjadi beban BUMN Pembina (Catatan 3a dan
19) sehingga CDC hanya mencatat beban sewa
untuk periode 1 Januari 2015 sampai 2 Juli 2015.
in
relation
the
Effective July 3, 2015,
to
implementation of PER-09/MBU/07/2015,
rent
expenses of Partnership Program will be
recognized by Foster SOE (Note 3a and 19),
therefore CDC only recorded rent expenses from
January 1, 2015 until July 2, 2015.
23. TRANSAKSI DAN SALDO DENGAN PIHAK
23. TRANSACTIONS AND BALANCES WITH
BERELASI
RELATED PARTIES
Hubungan dan sifat saldo akun/ transaksi dengan
pihak - pihak berelasi adalah sebagai berikut:
The relationship and nature of account balances/
transactions with related parties were as follows:
`
Hubungan/
Relation
BUMN Pembina/
Foster SOE
Entitas sepengendali
PT Telekomunikasi Indonesia Tbk /
Under common control of
PT Telekomunikasi Indonesia Tbk
Entitas sepengendali
PT Telekomunikasi Indonesia Tbk/
Under common control of
PT Telekomunikasi Indonesia Tbk
Pihak-pihak berelasi/
Related parties
Transaksi/
Transaction
PT Telekomunikasi Indonesia
Pengalokasian pendapatan program
(Persero) Tbk.
PT Graha Sarana Duta
PT Infomedia Nusantara
29
bina lingkungan /Income
allocation for community
development program
Penyedia jasa fitting out ruangan/
Room fitting out provider
Penyedia jasa survei opini dan
CSR Index/ Opinion Survey
and CSR Index service provider
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
23. TRANSAKSI DAN SALDO DENGAN PIHAK
23. TRANSACTIONS AND BALANCES WITH
BERELASI (lanjutan)
`
Hubungan/
Relation
RELATED PARTIES (continued)
Pihak-pihak berelasi/
Related parties
Transaksi/
Transaction
Entitas sepengendali
PT Telekomunikasi Indonesia Tbk/
Under common control of
PT Telekomunikasi Indonesia Tbk
PT Pins Indonesia
Entitas sepengendali
PT Telekomunikasi Indonesia Tbk/
Under common control of
PT Telekomunikasi Indonesia Tbk
PT Metra Digital Media
Penyedia perangkat CPE
(Customer Premises
Equipment)/
CPE (Customer Premises
Equipment) Provider
Penyedia bantuan dana pelatihan
Internet 2014/ Fund provider for
Internet training program
Perusahaan dibawah entitas
sepengendali oleh Pemerintah/
Entity under common control of
the Government
Perusahaan dibawah entitas
sepengendali oleh Pemerintah/
Entity under common control of
the Government
Perusahaan dibawah entitas
sepengendali oleh Pemerintah/
Entity under common control of
the Government
Perusahaan dibawah entitas
sepengendali oleh Pemerintah/
Entity under common control of
the Government
PT Bank Mandiri (Persero) Tbk
Penyedia dana untuk transaksi
PT Bank Negara Indonesia
(Persero) Tbk
PT Bank Rakyat Indonesia
(Persero) Tbk
operasional/ Funding company
for operational transaction
Penyedia dana untuk transaksi
operasional/ Funding company
for operational transaction
Penyedia dana untuk transaksi
operasional/ Funding company
for operational transaction
PT Sang Hyang Seri (Persero)
BUMN Penyalur lain/ Other Foster
SOE
Perusahaan dibawah entitas
PT Finnet Indonesia
Penyedia jasa virtual account/ Provider
of virtual accounts
PT Telekomunikasi Indonesia Tbk /
Entity under common control of
PT Telekomunikasi Indonesia Tbk
Perusahaan dibawah entitas
sepengendali oleh Pemerintah/
Entity under common control of
the Government
Perusahaan dibawah entitas
sepengendali oleh Pemerintah/
Entity under common control of
the Government
PT Perkebunan Nusantara VIII
Penerima Program BUMN Peduli/
Recipient of SOE Care
PT Pos Indonesia
Penerima Program BUMN Peduli/
Recipient of SOE Care
Perusahaan dibawah entitas
sepengendali oleh Pemerintah/
Entity under common control of
PT Industri Nuklir Indonesia (Persero)
dahulu/formerly PT Batan Teknologi
(Persero)
Penerima Program BUMN Peduli/
Recipient of SOE Care
the Government
30
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
23. TRANSAKSI DAN SALDO DENGAN PIHAK
23. TRANSACTIONS AND BALANCES WITH
BERELASI (lanjutan)
RELATED PARTIES (continued)
Rincian akun dan transaksi signifikan dengan pihak
- pihak berelasi adalah sebagai berikut:
The details of accounts and significant transactions
with related parties are as follows:
Aset
Kas dan Setara Kas (Catatan 4)
Program Kemitraan
Kas di bank
PT Bank Mandiri (Persero) Tbk.
PT Bank Negara Indonesia
(Persero) Tbk.
Deposito
PT Bank Mandiri (Persero) Tbk.
PT Bank Rakyat Indonesia
(Persero) Tbk.
31 Desember/December 31,
2015
2014
7.002.145.427
45.607.574.684
Assets
Cash and Cash Equivalents (Note 4)
Partnership Program
Cash in banks
PT Bank Mandiri (Persero) Tbk.
PT Bank Negara Indonesia
5.252.077.147
12.060.256.011
(Persero) Tbk.
-
-
15.000.000.000
PT Bank Mandiri (Persero) Tbk.
PT Bank Rakyat Indonesia
15.000.000.000
(Persero) Tbk.
Time deposit
12.254.222.574
87.667.830.695
Program Bina Lingkungan
Kas di bank
PT Bank Mandiri (Persero) Tbk.
PT Bank Negara Indonesia
(Persero) Tbk.
Deposito
PT Bank Tabungan Negara
(Persero) Tbk.
Jumlah kas dan setara kas
pada pihak afiliasi
Pinjaman kepada BUMN Pembina
Lain/ Lembaga Penyalur (Catatan 5)
PT Sang Hyang Seri (Persero)
107.257.334.628
21.107.186.145
Community Development Program
Cash in banks
PT Bank Mandiri (Persero) Tbk.
PT Bank Negara Indonesia
887.773
696.214.240
(Persero) Tbk.
-
20.000.000.000
107.258.222.401
41.803.400.385
9.637.740.363
9.687.740.363
Time deposit
PT Bank Tabungan Negara
(Persero) Tbk.
Total cash and cash equivalent
in affiliated parties
Loan to Other Foster SOE
or Distributing Partners (Note 5)
PT Sang Hyang Seri (Persero)
Jumlah pinjaman
9.637.740.363
9.687.740.363
Total loan
Jumlah aset pada pihak afiliasi
129.150.185.338 139.158.971.443
Total assets in affiliated parties
Jumlah aset
583.146.978.502 587.655.626.946
Total assets
Sebagai prosentase terhadap
jumlah aset
22%
24%
As percentage to total assets
31
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
23. TRANSAKSI DAN SALDO DENGAN PIHAK
23. TRANSACTIONS AND BALANCES WITH
BERELASI (lanjutan)
RELATED PARTIES (continued)
31 Desember/December 31,
2015
2014
Liabilitas
Liabilitas lancar lainnya
PT Bank Rakyat Indonesia
(Persero) Tbk
PT Pos Indonesia (Persero) Tbk
Perusahaan Perseroan
PT Telekomunikasi
Indonesia Tbk
PT Perkebunan Nusantara VIII
PT Industri Nuklir Indonesia (Persero)/
dahulu PT Batan Teknologi
5.691.103.171
3.371.533.422
1.161.114.697
489.694.586
259.501.179
Jumlah liabilitas lancar lainnya
10.972.947.055
Liabilities
Other Current Liabilities
PT Bank Rakyat Indonesia
(Persero) Tbk
PT Pos Indonesia (Persero) Tbk
Perusahaan Perseroan
PT Telekomunikasi
Indonesia Tbk
PT Perkebunan Nusantara VIII
PT Industri Nuklir Indonesia (Persero)
/formerly PT Batan Teknologi
Total other current liabilities
-
-
-
-
-
-
Biaya akrual
(Catatan 10)
PT Infomedia Nusantara
Jumlah biaya yang masih harus dibayar
-
-
879.175.000
879.175.000
Utang lain- lain (Catatan 13)
PT PINS Indonesia
PT Finnet Indonesia
107.046.500
12.500.000
467.720.000
-
Accrued Expenses
(Note 10)
PT Infomedia Nusantara
Total accrued expenses
Other Payable (Note 13)
PT PINS Indonesia
PT Finnet Indonesia
Jumlah utang lain-lain
119.546.500
467.720.000
Total other payable
Jumlah liabilitas pihak afiliasi
11.092.493.555
1.346.895.000
Total liabilities in afffiliated parties
Jumlah liabilitas
11.718.205.710
2.781.227.772
Total liabilities
Sebagai prosentase terhadap
jumlah liabilitas
95%
48%
As percentage to total liabilities
31 Desember/December 31,
2015
2014
Beban
Program Kemitraan
Expenses
Partnership Program
PT Infomedia Nusantara
PT Metra Digital Media
3.845.488.368
150.000.000
3.012.460.332
-
PT Infomedia Nusantara
PT Metra Digital Media
Jumlah
3.995.488.368
3.012.460.332
Total
Jumlah beban operasional
pihak afiliasi
3.995.488.368
3.012.460.332
Total operational expense
in affiliated parties
Jumlah beban
36.009.906.802
66.831.201.107
Total expense
Sebagai prosentase terhadap
jumlah beban
11%
5%
As percentage to total expense
32
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
23. TRANSAKSI DAN SALDO DENGAN PIHAK
23. TRANSACTIONS AND BALANCES WITH
BERELASI (lanjutan)
RELATED PARTIES (continued)
Pendapatan
Program Kemitraan
Pendapatan Bunga Deposito
PT Bank Rakyat Indonesia
(Persero) Tbk
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia
(Persero) Tbk
PT Bank Tabungan Negara
(Persero) Tbk
PT Bank Syariah Mandiri
31 Desember/December 31,
2015
2014
284.400.006
54.197.260
1.071.511.114
1.297.932.329
-
-
-
1.817.315.161
851.506.849
483.231.461
Revenue
Partnership Program
Revenue from Deposits
PT Bank Rakyat Indonesia
(Persero) Tbk
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia
(Persero) Tbk
PT Bank Tabungan Negara
(Persero) Tbk
PT Bank Syariah Mandiri
Jumlah
338.597.266
5.521.496.914
Total
Pendapatan Jasa Giro
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia
(Persero) Tbk
PT Bank Tabungan Negara
(Persero) Tbk
1.072.334.546
2.208.843.267
155.771.310
30.934.296
-
1.897.321
Revenue from Current Account
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia
(Persero) Tbk
PT Bank Tabungan Negara
(Persero) Tbk
Jumlah
1.228.105.856
2.241.674.884
Total
Program Bina Lingkungan
Pendapatan Bunga Deposito
PT Bank Negara Indonesia
(Persero) Tbk
PT Bank Mandiri (Persero) Tbk
PT Bank Tabungan Negara
(Persero) Tbk
PT Bank Rakyat Indonesia
(Persero) Tbk
Community Development Program
Revenue from Deposits
PT Bank Negara Indonesia
(Persero) Tbk
PT Bank Mandiri (Persero) Tbk
PT Bank Tabungan Negara
(Persero) Tbk
PT Bank Rakyat Indonesia
(Persero) Tbk
109.917.807
21.304.109
323.008.492
138.564.383
-
-
1.846.301.369
559.999.997
Jumlah
131.221.916 2.867.874.241
Total
Pendapatan Jasa Giro
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia
(Persero) Tbk
1.107.748.983
471.380.116
3.659.022
1.350.522
Revenue from Current Account
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia
(Persero) Tbk
Jumlah
1.111.408.005
472.730.638
Total
Jumlah pendapatan pada pihak afiliasi
2.809.333.043
11.103.776.677
Total revenues from affiliated parties
Jumlah pendapatan
22.564.280.420 60.916.672.873
Total revenue
Sebagai prosentase terhadap
jumlah pendapatan
12%
18%
As percentage to total revenue
33
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
24. PEMBATASAN PENGGUNAAN DANA
24. RESTRICTED FUND USAGE
Kep.100/MBU/2002
Program Kemitraan
a. Penilaian Efektivitas
Penilaian kinerja program kemitraan dan bina
lingkungan berdasarkan Keputusan Menteri
BUMN No. Kep.100/MBU/2002 tanggal 4 Juni
2002 mencakup Program Kemitraan dengan
Indikator Tingkat Efektivitas penyaluran dan
Tingkat Kolektibilitas Pengembalian Pinjaman.
Tingkat efektivitas penyaluran dana dihitung
dengan cara membagi
jumlah dana yang
disalurkan dengan jumlah dana yang tersedia.
Jumlah dana yang disalurkan adalah seluruh
dana yang disalurkan kepada usaha kecil dan
koperasi dalam tahun yang bersangkutan yang
terdiri dari pinjaman modal kerja. Sedangkan
jumlah dana yang tersedia terdiri dari saldo
awal periode ditambah dengan pengembalian
pinjaman
(pokok ditambah bunga) dan
pendapatan bunga dari program kemitraan.
Kep.100/MBU/2002
Partnership Program
a. Effectivity Performance
The performance evaluation of partnership and
community development program is based on
the Minister of SOE Decree No. Kep.100/ MBU/
2002 dated June 4, 2012 regarding The
Effectiveness Indicator of Partnership Program
Loan Distribution and the Collectibility of the
Loan Repayments.
loan distribution
is
The effectiveness of
calculated by dividing the amount of distributed
funds by the amount of the utilizable funds.
Amount of distributed funds represents all
current year
to small
enterprise businesses and cooperation. The
funds are distributed as working capital loans.
Utilizable funds is calculated by adding the
beginning balance with
repayments
(principal and the interest repayments) and with
interest income from partnership program.
funds distribution
loan
Tabel skor tingkat penyerapan dana
Score of funds absorbtion table
Penyerapan %
Skor
>90
3
85 s.d 90
2
80 s.d 85
1
<80
0
% of absorbtion
Score
Distribusi dana
Jumlah Dana yang Disalurkan
(Catatan 24)
Dana Pembinaan Kemitraan
(Catatan 18, 24)
Dana yang tersedia
Saldo awal (Catatan 4)
Pengembalian Pinjaman Mitra Binaan
(Catatan 24)
Pendapatan Jasa Administrasi
Pinjaman (Catatan 24)
Tahun yang
Berakhir
pada Tanggal
31 Desember 2015/
Year ended
December 31, 2015
340.959.090.000
6.014.476.847
346.973.566.847
87.667.830.695
267.227.495.235
29.443.919.585
384.339.245.515
Fund distribution
Distribution of Funds
(Note 24)
Fostering Partnership Funds
(Note 18, 24)
Fund available
Beginning balance (Note 4)
Loan Repayments from Foster Partners
(Note 24)
Loan Administration Service Income
(Note 24)
Tingkat efektivitas penyaluran
Level of the effectiveness of the loan distribution
(prosentase distribusi dana
terhadap dana yang tersedia) 90,28%
(percentage of fund distribution to
available fund)
Skor tingkat efektivitas penyaluran
pinjaman
3
34
Score of level of the effectiveness of the loan
distribution
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
24. PEMBATASAN PENGGUNAAN DANA (lanjutan)
24. RESTRICTED FUND USAGE (continued)
Kep.100/MBU/2002 (lanjutan)
Kep.100/MBU/2002 (continued)
Program Kemitraan (lanjutan)
Partnership Program (continued)
b. Tingkat Kolektibilitas Penyaluran Pinjaman
b. Collectibility level of the Loan Distribution
suatu
indikasi
pinjaman.
pengembalian
Indikator lain dalam penilaian kinerja program
kemitraan dan bina lingkungan yaitu tingkat
kolektabilitas pengembalian pinjaman yang
kemungkinan
mana memberi
tertagihnya
Tingkat
pinjaman
kolektabilitas
merupakan perbandingan antara
rata-rata
terhadap
tertimbang kolektibilitas pinjaman
jumlah pinjaman yang disalurkan
(saldo
pinjaman). Rata-rata tertimbang kolektabilitas
pinjaman adalah perkalian antara bobot
kolektabilitas
pinjaman
berdasarkan kualitas pinjaman (lancar: 100%,
kurang
lancar: 75%, diragukan: 25% dan
macet: 0%).
dengan
saldo
Another performance indicator of partnership
and community development program is the
collectibility of repayments which indicates the
probability of a loan to be fully paid. The
collectibility level is calculated by comparing the
weighted average collectibility
funds with
distributed funds. Weighted average funds is the
result of multiplying the collectibility weightage
with the balance of each quality of the loan (e.g:
current: 100%, substandard: 75%, doubtful: 25%
and troubled: 0%)
Skor
pinjaman adalah sebagai berikut:
kolektibilitas
tingkat
pengembalian
Score of loan repayments collectibility level is as
follows:
Tingkat Pengembalian (%)
Skor
>70
3
40 s.d 70
2
10 s.d 40
1
<10
0
% of Collectibility Level
Score
Rata - rata tertimbang kolektibilitas pinjaman
per 31 Desember 2015 adalah sebagai berikut:
Weighted average amount of the collectibility of
the loan as of December 31, 2015 is as follows:
Kualitas Pinjaman
Saldo pinjaman
(Catatan 6e)
(tidak diaudit)/
Loan balance
(Note 6e)
(unaudited)
2.031.523.058.805
Lancar
160.351.452.014
Kurang Lancar
66.711.450.456
Diragukan
779.803.129.387
Macet
Jumlah
3.038.389.090.662
Tingkat kolektibilitas pengembalian pinjaman
tertimbang
(prosentase
kolektibilitas pinjaman
saldo
pinjaman yang disalurkan)
Nilai
pinjaman
tingkat kolektibilitas pengembalian
terhadap
rata-rata
jumlah
%
100%
75%
25%
0%
71,37%
Jumlah rata-rata
tertimbang/
Weighted Average
Amount
Loan Quality
2.031.523.058.805
120.263.589.011
16.677.862.614
-
2.168.464.510.430
Current
Substandard
Doubtful
Troubled
Total
Loan repayment collectibility level
(percentage of weighted average loan
collectibility to loan distribution)
3
Score of repayments collectibility level
35
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
24. PEMBATASAN PENGGUNAAN DANA (lanjutan)
24. RESTRICTED FUND USAGE (continued)
PER-09/MBU/07//2015
Program Kemitraan
PER-09/MBU/07//2015
Partnership Program
Prosentase dana pembinaan terhadap dana
program kemitraan yang disalurkan pada tahun
berjalan
The percentage of fostering partnership funds
to current year
for
partnership program
funds distribution
PER-09/MBU//07/2015 pasal 9 ayat 4 menyatakan
bahwa besarnya dana pembinaan yang terdiri dari
biaya pendidikan, pemasaran, promosi dan hal
lain-lain besarnya maksimal sebesar 20% (dua
puluh persen) dari dana program kemitraan yang
disalurkan pada tahun berjalan. Ketentuan ini
belum pernah direvisi.
Pada tahun yang berakhir pada 31 Desember
2015, prosentase beban dana pembinaan
terhadap penyaluran program kemitraan adalah
sebagai berikut:
PER-09/MBU/07/2015 clause 9 verse 4 specified
that the amount of fostering partnership funds
which consists of education, marketing, promotion
expense,
the
partnership program distribution during the year.
This regulation has never been revised.
etc is 20% at
a maximum of
For the year ended December 31, 2015, the
percentage of
to
current year partnership program funds distribution
is as follow:
fostering partnership
funds
Tahun yang
berakhir
pada Tanggal
31 Desember 2015/
Year ended
December 31, 2015
6.014.476.847
340.959.090.000
Fostering partnership funds
(Note 18)
Partnership distribution
(Note 24)
1,76%
funds to partnership funds distribution
Percentage of fostering partnership
Dana pembinaan kemitraan
(Catatan 18)
Penyaluran program kemitraan
(Catatan 24)
Prosentase dana pembinaan kemitraan
terhadap dana program kemitraan yang
disalurkan
36
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM
KEMITRAAN DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2015 dan Tahun yang
Berakhir pada Tanggal tersebut
(Disajikan dalam Rupiah)
The original financial statements included herein are in Indonesian
language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015 and
Year then Ended
(Expressed in Rupiah)
24. PEMBATASAN PENGGUNAAN DANA (lanjutan)
24. RESTRICTED FUND USAGE (continued)
Laporan Arus Kas - Metode Langsung
Statement of Cash Flows - Direct Method
Tahun yang Berakhir pada
tanggal 31 Desember/
Year Ended December 31,
2015
2014
OPERATING ACTIVITIES
Fund Received from Foster SOE
Loan Repayments from Foster Partners
Unidentified Installments
Payable Payment
Loan Administration Service Income
Interest Income
Loan Distribution
Fostering Partnership Funds
Repayment of Other Receivables
Community Development
Fund Distribution
Empowerment Expenses
General and Administration Expenses
Payment of Rent Expenses
Refund to Foster Partners
NET CASH FLOWS USED TO
OPERATING ACTIVITIES
DECREASE IN CASH AND
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS
AT END OF YEAR
AKTIVITAS OPERASI
Penerimaan Dana BUMN Pembina
Pengembalian Pinjaman Mitra Binaan
Angsuran Belum Teridentifikasi
Pembayaran Utang
Pendapatan Jasa Administrasi
Pinjaman
Pendapatan Bunga
Penyaluran Pinjaman
Dana Pembinaan Kemitraan
Pengembalian Piutang Lain-lain
Penyaluran Bina Lingkungan
Beban Pembinaan
Beban Administrasi dan Umum
Pembayaran Beban Sewa
Restitusi kepada Mitra Binaan
KAS NETO DIGUNAKAN UNTUK
AKTIVITAS OPERASI
PENURUNAN
82.000.000.000
82.804.774.026
267.227.495.235 201.503.156.976
51.509.983
(38.252.218.616)
346.012.126
(1.227.348.500)
29.443.919.585
4.614.976.705
21.817.204.599
16.796.148.204
(340.959.090.000) (396.422.510.000)
(15.294.716.793)
4.822.298.871
(6.014.476.847)
9.811.832.358
(80.838.885.303)
(2.289.880.645)
(5.584.101.195)
(1.436.320.910)
(52.918.714)
(81.186.818.976)
(5.101.507.680)
(13.723.964.373)
(2.821.557.515)
(117.219.154)
(44.958.786.105) (225.125.420.448)
KAS DAN SETARA KAS
(44.958.786.105)
(225.125.420.448)
KAS DAN SETARA KAS PADA
AWAL TAHUN
KAS DAN SETARA KAS PADA
AKHIR TAHUN
164.471.231.080 389.596.651.528
119.512.444.975 164.471.231.080
37
PRODUCTION TEAM
ANNUAL REPORT
Doing a good job is not always about impressive innovation. Sometimes it is only
about doing something with plain dedication. Well done!
Annual Report 2015
Annual Report 2015
Annual Report 2015
MODEL/TALENT
DATA CONTRIBUTORS
• Alynda Novita
• Acep Dudung Ganjar
Soepardi
• Hendri Purnaratman
• Maya Putri Arini
• Ristianto
• Clarivtika Ayu Mahardipta
• Achmad Hambali
• Desi Ariani Sinulingga
• Achmad Wahyu
• Cholis Safrudin
• Dadan Gumbira
• Heru Adryana
• Melani Muchlis Moectar
• Sang Kompiang
• Hery Saepul Azis
• Merry Arizona
Muliartawan
• Faza Rasyadan
• Firdha Nur Aisya
• Gerry Agustinus
• Hanif Faidz Rahadian
• Justia Deklaranti R.
• Kristian Luas Sautan
• M. Taufik Hidayat
• Muhammad Hafizh
• Noski Pandapotan Samosir
• R. Utomo Ajipriyanto
• Ratih Miranda
• Rully Amal Putra
• Saskia Dwi Aprilia
• Wiedya Permata Putri
Hamid
• Qori Aini Nisa (putri Uwes
Qorni)
• Ryu Nabil Ruzain (putra
Junian Sidharta)
• Achmad Zaki Fairuzi
• Dadi Abdurahman
• I Wayan Sukerata
• Meyana Nur Patria
• Saul Rudy Nikson
• Adam Saksono
• Dessy Sandra
• Ichwan Muttaqin
Krisna
• Sigit Adi Pramono
• Afrizilla Yulika Hanifah
• Diani Nurhidayati
• Ida Widayani
• Mikhail Meoko
• Sisgianto
• Agung Kertioso
• Didi Haryadi
• Ika Nugrahanti
• Mochamad Riza Rosadi
• Solihati
• Ahmad Arif Rahman
• Didi Muharwoko
Budhysulistyani
• Muhamad Patria
• Suarjaya Alit Mandala
• Ahmed Yasser
• Ali Nurbijanto
• Didit Dwiantoro
• Dinoor Susatijo
• Imam Rijanto
• Imam Suhadi
Narotama Widjaja
• Sukma Nandini
• Muhammad Nur Hidayat
• Sumarno
• Andri Herawan Sasoko
• Dodo Rukandi
• Indah Permatasari
• Muhammad Nursalim
• Supriyono
• Anggia Permatasari
• Edi Santoso
Noegroho P.
• Muhammad Rofik
• Susilo Budi Utomo
• Anggoro Kurniawan
• Eri Yusuf
• Indrama Yusuf Muda
• Nadia Eka Herdiana
• Tatwanto Prastistho
Widiawan
• Ardi Desento
• Ardya Prahasta
• Ari Sudrajat
• Fadjrul Falah
• Fajar Wibawa
Purba
• Iwan Setiawan
• Nendi Rohendi
• Nike Yosephine
• Taufik Seffty Negara
Purba
• Febrina Indiastuti
• Janar Widyatmoko
• Novy Kartikayanti
• Teguh Wahyono
• Ferry S. Purbo
• Junainah
• Nur Firman Yudhi
• Totok Dwi Indarto
• Arief Hamdani Gunawan
• Fiandis Susanto
• Junian Sidharta
Wirawan
• Wahyudi Handriyanto
• Arif Swasono
• Ario Guntoro
• Asraal Fatoni
• Aunur Rofiq
• FX. Krisdiastoro
• Junitia Priandriwijayanti
• Nurcholis Feri Ahmadi
• Wartono Purwanto
• Gandung Pratidhina
• Kenny Nazar
• Oktadiasih Muninggar
• William Susanto
• Ganjar Daniswara
• Khamim Utomo
• Prakoso Imam Santoso
• Wilson Normal
• Gunawan
• Kukuh Pribadijanto
• Prayudi Nugroho
• Yadi Ruslannurzaman
• Bagus Wahyu Hidayat
• Hadi Lestari
• Kurnia Rimadani
• Pri Handoko
• Yanyan Nuryana
• Bayu Aji Wijaya
• Buddy Restiady
• Budi Setiani
• Hadi Purwantoro
• Lilis Susanti
• Pujo Pramono
• Hardi Purwanto
• M. Arief Widhiyanto
• Retnoningsih
• Haris Widjanarko
• Maju Sinaga
• Rieky Zainal
• Yudha Bestari
• Yuli Purwanti
• Zita Hapsari
• Chintia Febrianti
• Hatta Perdana
• Mashudi
• Rinaldi Nainggolan
DESIGN
COPYWRITER
PRINTING
PRODUCTION TEAM
PT Desain Nindya Amarta
• Danang Purwadi
PT Metra Digital Media
• Andi Setiawan
(DNA KOMUNIKA)
(Tata Kelola Perusahaan)
(MD MEDIA)
www.dnakomunika.com
PHOTOGRAPHY
TRANSLATOR
• Mike Marcus
PT Trimars Perkasa Abadi
(INVESTINDO
• Dewi
• Uwes Qorni
• Merna
• Erni Ambarsari
• Heti Triaswati
• Hendra Priatna
• Candri Yuniar Roisy
• Nailul Murod
• Raditya Anggoro
• Vanni Octavania
2015
Annual Report
PT Telkom Indonesia (Persero) Tbk
Investor Relations
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