2016 Annual Report
BUILDING INDONESIAN
DIGITAL ECONOMY
Disclaimer
This is the annual report of PT Telkom indonesia (Persero) Tbk, or referred
to as “report” for the performance period of 1 January to 31 December 2016.
information and data presented in this report are relevant and significant for
investors, the Government of the republic of indonesia, and other stakeholders.
PT Telkom indonesia (Persero) Tbk, or referred to as “Telkom”, compiled this
report based on the applicable regulations in indonesia, namely the Financial
services authority circular No.30/seOJK.04/2016 about structure and content
of the annual report of Public companies. some of the information and data in
this report also appear in the Form 20-F according to the rules of the securities
and exchange commission (sec) in the United states, but this report or its
parts is not coupled with the Form 20-F report.
The mention of “Telkom Group” in this report refers to the Telkom business
group that includes the parent company, its subsidiaries and tier 2 subsidiaries
operating in indonesia and abroad. The word “government” mentioned in this
report refers to the Government of the republic of indonesia, while the word
“america” refers to Government of the United states of america.
The information and data presented in this report are derived from the
consolidated Financial statements of Telkom and its subsidiaries and other
reliable sources. Presentation of information and financial data in this report are
in rupiah (rp) or Us Dollar (Us$).
For further information on this Report, please contact:
VP Investor Relations
Tel. : +62-21-5215 109
Fax. : +62-21-5220 500
E-mail: investor@telkom.co.id
Facebook: TelkomIndonesia
Instagram: telkomindonesia
Twitter: @telkomindonesia
PT Telkom Indonesia (Persero) Tbk
Graha Merah Putih 5th Floor
Jl. Jend. Gatot Subroto Kav.52
Jakarta 12710, Indonesia
This report can also be downloaded from http://www.telkom.co.id
Forward-looking statements in this report contain targets, expectations,
forecasts, estimates, or projections of Telkom for the foreseeable future. The
statements are disclosed by Telkom with a thorough consideration but contain
risks of uncertainty in the future due to various factors. Therefore, in line with
good corporate governance standards, Telkom states that it cannot guarantee
that the foresights will be fulfilled completely.
2
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 3
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS REPORT
THEMES
Building Indonesian Digital Economy
Indonesian society is increasingly feeling the presence of the digital era to enter many areas of life,
following the global trend. Digitalization has changed human behavior, especially in the economic field,
as business processes become faster, more efficient and more effective. At the same time, the digital era
offers new economic opportunities that we have never seen before, through a variety of creative ways
based on digital services. The business model in transaction is also moving fast, from conventional market
system to the marketplace of e-commerce platform, which no longer has boundaries, both for producers
and consumers.
In the face of these changes, Telkom is preparing itself by building digital infrastructure and its supporting
ecosystem thoroughly and sustainably. Telkom builds infrastructure that includes three components,
namely id-Access, id-Ring and id-Con, or known as the Indonesia Digital Network (“IDN”). For id-Access,
which is a network of fiber-based access to customers’ homes, Telkom already has more than 16.4 million
of homes-passed; for id-Ring, which is a broadband highway, Telkom has built 106,000 kilometers of fiber-
based backbone that connects many islands throughout Indonesia from Sabang to Merauke; while for id-
Con, a cloud service which is integrated with Telkom Group’s network, more than 95,000 m2 gross facility
data centers have been built in various locations both locally and abroad.
Telkom has an online shopping platform (marketplace) which continues to develop, namely blanja.com, as
part of the ecosystem of the digital economy, which is expected to encourage the marketing of various
products in a faster, easier, cheaper way, and to reach a larger area. Telkom is also developing a variety of
applications that brings convenience and is able to stimulate economic activities. The three components
of the IDN, along with its supporting ecosystem, are the main foundation of Telkom in stepping forward to
be the leader in building digital economy in Indonesia.
As a country with a population of more than 250 million, Indonesia has very large potentials of digital
economy. People’s increasingly high internet literacy driven by the widespread use of smartphones and
fixed-broadband becomes an essential component for the growth of the digital economy, in addition to the
availability of various supporting applications or contents, the readiness of small and medium enterprises
(SMEs) to be able to make standardized products, and the support of reliable logistics network. The
government has seen the existing great potentials, and declared Indonesia as the largest digital economy
country in Southeast Asia in 2020.
This Annual Report entitling “Developing Indonesia’s Digital Economy” is a continuation of the previous
theme, which is “Developing Indonesia’s Digital Society”. The current theme illustrates the readiness of
Telkom Group in the transformation toward its vision that is to Be the King of Digital, which also plays
an important role in accelerating the growth of digital economy of Indonesian society. As the pride of
Indonesia, Telkom Group will continue to move ahead with the society to create prosperity in the present
and in the future.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS CONTINUITY OF
THEME
6
1
0
2
2016 Laporan Tahunan
MEMBANGUN EKONOMI
DIGITAL INDONESIA
2016 | Building Indonesian Digital Economy
With integrated infrastructures, Telkom is ready to support the embodiment of
Indonesia’s vision as the largest digital economy country in Southeast Asia in
2020 and also to accelerate Indonesian economy growth in digital era. Telkom
will continue to move ahead with the community to realize innovations and
develop social welfare, today and in the future.
5
1
0
2
2015
Laporan Tahunan
MEMBANGUN
MASYARAKAT DIGITAL
INDONESIA
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 provide the best digitization
experience for customers.
4 2014 | Sustainable Competitive Growth
1
0
2
through Digital Business
Investing in digital business is a necessity for Telkom
to improve competitiveness while maintaining
sustainable competitive growth in the future.
2 2012 | Bringing Indonesia to the
1
0
2
Digital Society
We pioneered the digital community in
Indonesia with a focus on providing services
information, media, edutainment and
in
including the development of
services,
Indonesia Digital Network.
3 2013 | Creating Global Talents and Opportunities
1
0
2
International expansion has become a necessity for us to be able to maintain a high and sustainable growth rate.
This strategic initiative has led us to achieve double-digit growth and solidify us as a provider company for TIMES
service, which is dominant in Indonesia and is acclaimed in the region.
TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS TELKOM GROUP
FINANCIAL AND
OPERATIONAL HIGHLIGHTS
MANAGEMENT REPORT
ABOUT TELKOM
INDONESIA
MANAGEMENT DISCUSSION
AND ANALYSIS
BrieF PrOFile OF TelKOm
aND iTs sUBsiDiaries
Telkom is a State-Owned Enterprise (“SOE”) conducting business in the field of integrated
telecommunications services and networks in Indonesia operating domestically and abroad.
65%
100%
100%
100%
100%
100%
99.99%
100%
100%
100%
100%
CORPORATE
GOVERNANCE
CORPORATE SOCIAL
RESPONSIBILITY
PARTNERSHIP AND COMMUNITY
DEVELOPMENT PROGRAM
APPENDICES
CONSOLIDATED
FINANCIAL STATEMENTS
Company Name
PT Telkom Indonesia (Persero) Tbk
Commercial Name
Telkom
Category of Goods and Services
Telecommunication and information
Media and edutainment
Infrastructure
Legality
Tax Identification Number 01.000.013.1-093.000
Certificate of Company Registration 101116407740
Business License 510/3-0689/2013/7985-BPPT
Address and Contact Details of Main Office
Graha Merah Putih, Jl. Japati No. 1, Bandung, West Java,
Indonesia - 40133
Telephone:
+62-22-4521404
Facsimile:
+62-22-7206757
Call Center:
147
Website:
www.telkom.co.id
E-mail:
corporate_comm@telkom.co.id,
investor@telkom.co.id
Facebook:
TelkomIndonesia
Instagram:
telkomindonesia
Twitter:
@telkomindonesia
Important Dates
Oktober 23, 1856:
Telkom’s Establishment
November 19, 1991:
Transformation into Perusahaan Perseroan (Persero)
PT Telekomunikasi Indonesia
Legal Basis for Establishment
Pursuant to Government Regulation No.25 of 1991,
the status of the Company is changed into a state-
owned limited liability company (“persero”) according
to the Notarial Deed of Imas Fatimah, S.H. No.128 of
September 24, 1991, as approved by the Minister of
Justice of the Republic of Indonesia through Decision
No. C2-6870.HT.01.01.Year.1991 dated November 19, 1991,
as announced in the State Gazette of the Republic of
Indonesia No.5 dated January 17, 1992, Supplement to
the State Gazette No.210.
Ownership
The Government of the Republic of Indonesia 52.09%,
Public 47.91%
Listing in the Stock Exchange
The Company stock is listed at BEI/IDX and NYSE on
November 14, 1995 with the stock code “TLKM” at BEI,
Jakarta, Indonesia and “TLK” at the NYSE, New York,
United States.
Authorized Capital
1 A Series Dwiwarna Share and
399,999,999,999 B shares Series
Issued and Fully Paid Capital
1 A Series Dwiwarna Share and
100,799,996,399 B shares Series
Rating
idAAA (Pefindo) for the year 2012, 2013, 2014, 2015 and
2016
Service Centers
Telkom Regional Offices (“Telkom Regional”)
Telecommunication Zones
7
59
566 Plasa Telkom Outlets
7
International GraPARI in Mecca - Saudi Arabia,
Singapore, Hong Kong, Macau, Taipei & Tainan -
Taiwan and Malaysia
416 GraPARI, including those managed by third
parties
487 GraPARI Mobile Units
Subsidiary Entities and Associations
12
21
Direct Subsidiaries (including 1 subsidiary
that is no longer in operation)
Indirect Subsidiaries
TELKOM GROUP
FINANCIAL AND
OPERATIONAL HIGHLIGHTS
MANAGEMENT REPORT
ABOUT TELKOM
INDONESIA
MANAGEMENT DISCUSSION
AND ANALYSIS
www.telkomsel.com
www.telkomakses.co.id
PT Telekomunikasi Seluler
(Telkomsel)
is one of
Telkomsel
Indonesia’s most
prominent cellular operators with more than
173.9 million customers, 129,033 BTS with the
widest network in Indonesia.
Product and Services:
• Kartu Halo
Positioned
professionals and corporate customers.
as postpaid brand
for
• simPATI
Positioned as prepaid brand for middle
class segment
PT Telkom Akses
(Telkom Akses)
• LOOP
Postioned as prepaid brand for young adult
segment
Telkom Akses provides construction and
fixed-broadband
infrastructure
construction services.
network
• Enterprise Mobile Product Marketing
• Solution for SME Segment
• Solution for Large Enterprise Segment
• Enterprise Digital Service
• Smart Connectivity
• T-Drive
• T-Bike
• T-Fleet
Product and Services:
Telkom Akses’ main portfolios are the
construction services (deployment), fixed
broadband access networks, and operations
& maintenance services of fixed broadband
access networks (managed services).
• Kartu As
• Mobile Financial Service
Postioned as affordable prepaid brand
• TCASH
• TWALLET
www.patrakom.co.id
PT Patra Telekomunikasi
(Patrakom)
www.metra.co.id
PT Multimedia Nusantara
(Telkom Metra)
Telkom Metra conducts business activities
in the field of network and multimedia
management, covering, among others: data
communications system services, portal
services and online transaction service.
It is a strategic holding company transaction
services
information, media and
services (IMES) industry.
in the
Product and Services:
• Satellite
• Premises Integration Services
• System Integration & Manage Apps
• Data Center
• Cloud & Managed Services
• e-Payment
• Business Process Management
• Data Analytics
• e-Solution
• Digital Media Life
• Digital Media Home and Digital Advertising.
Patrakom manages a broadband satellite
business
Energy,
Telecommunication, Plantation, Banking and
Government business segments.
the Maritime,
for
Product and Services:
• VSAT-SCPC (Single Carrier Per Channel).
• VSAT-IP.
• Radio-IP.
• MSS (Mobile Satellite Service).
• VTMS
(Vessel Tracking Management
System).
• Coconnet.
www.telkomproperty.co.id
PT Graha Sarana Duta
(GSD)
Product and Services:
• Property management
Telkom Property conducts four types of
business, namely property management,
property development, property lease and
property facilities
• Building Management, security and
Housekeeping services, utilities management,
Energy Management, and Parking Management.
• Property development
• Residential development, office development,
and property investments.
• Property lease
• Office space, and warehouses
for corporate business needs,
accommodation facilities in the form of
a hotel with 291 rooms.
• Property facilities
• Shuttle buses with mobile concept.
• Smart Office.
• Supporting business facilities, including
official vehicles.
8
8
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
CORPORATE
GOVERNANCE
CORPORATE SOCIAL
RESPONSIBILITY
PARTNERSHIP AND COMMUNITY
DEVELOPMENT PROGRAM
APPENDICES
CONSOLIDATED
FINANCIAL STATEMENTS
www.mitratel.co.id
www.telkominfra.co.id
PT Dayamitra Telekomunikasi
(Mitratel)
and
manages
Mitratel
builds
telecommunications
facilities and
infrastructure as well as four main business
(B2S),
segments, namely built
collocation and reseller, microcell, project
and tower related services.
to suit
tower
Product and Services:
• Built to suit
• Tower rental services by building new towers
in accordance with their respective locations
and specifications requested by operator.
• Colocation and reseller
• Existing tower rental services to
customers.
• Tower rental services owned by third
parties to customers.
• Microcell
• In building system (IBS).
• Outdoor solution (BTS Hotel).
• Tower related services
• Combat.
• Backhaul.
• Survey Tower.
• Cell Pion.
• IMB.
• HO.
• Construction services
www.telin.co.id
PT Telekomunikasi Indonesia
International (Telin)
a. Basic services
b. Mobile broadband
c. Digital service
PT Infrastruktur
Telekomunikasi Indonesia
(Telkom Infra)
Telkom Infra has four business portfolios,
namely network managed services, service
solution, power & engineering solution and
submarine cable.
Product and Services:
• Site Maintenance.
• Network Managed Services.
• Network Optimization.
• Energy Solution.
• Off Grid Solution.
• On Grid Solution.
• Service Solution.
• Engineering Service.
• Construction Service.
• Submarine Cable.
• Operation & Maintenance.
• Cable Laying.
plans,
constructs,
Telin
provides,
develops,
operates,
markets/offers/
international
leases and maintains
telecommunication informatics network and
service;
the
Products and Services:
a. Telecommunication
1. Mobile Services
2. Network & Infrastructure Services
a. Interconnection & international traffic
b. Network services
c. Satellite
b. Information
1. Platform Services
a. Data center & cloud
b. Business Process Management
c. Mobile platform
www.pins.co.id
www.metranet.co.id
PT Jalin Pembayaran Nusantara
(Jalin)
PT PINS Indonesia
(PINS)
JALIN was established on November 3, 2016.
It is currently focus on business of non-cash
payment system that supports national
payment gateway.
Products and Services:
• Management of the system and/or network
in a transaction using the card payment
instruments (CPI).
• Cooperate with the merchant so the
merchant is able to process transactions
from CPI issued by other parties.
• Switching and
routing services over
electronic transactions using CPI.
• APMK operator in clearing transactions.
• Settlement on the calculation of the
clearing.
PINS has a business portfolio that consists of
three groups, namely mobility services, CPE
services, and IoT services/M2M solution.
Product and Services:
• IoT Services include, among others, Smart
City, Smart Building, Smart Office, Smart
Water, Smart PJU, IoT Gateway, and IT
Infrastructure Management
• Product Mobility Services, consists of
PRIME and Handset.
• CPE Services include products such as Seat
Management, Business Area Management
System, ICT Security System, IT Hardware,
Managed CPE Services.
PT Metranet (Metranet)
Metranet is currently focused on mobile
business development and online media to
increase online traffic, enrich the service, and
optimize the monetization process.
Products and Services:
• Uad, platforms
that bring
together
publishers, advertisers and agencies to
be able to do digital advertising activities
effectively and efficiently.
• UPOINT, virtual payment instruments and
navigation services to make purchases
virtually.
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk
9
9
TELKOM GROUP
FINANCIAL AND
OPERATIONAL HIGHLIGHTS
MANAGEMENT REPORT
ABOUT TELKOM
INDONESIA
MANAGEMENT DISCUSSION
AND ANALYSIS
TelKOm DiGiTal eXPerieNce
eNcOUraGes cHaNGes aND
creaTes OPPOrTUNiTies
blanja UNIQUE
VALUE PROPOSITION
1.
2.
3.
Leveraging Telkom Group
Ecosystem
Leveraging e-Bay’s
expertise and network
with more than 500 million
global products
Marketing the product of Small
Medium Enterprise guided by
State Owned Enterprises to
local and global market
Customer Experience
1.
Accessible through Web Desktop, Android & iOS Mobile
Apps, Mobile Web
2.
A wide selection of payment method
3.
Search experience
4.
Various promotion programs
10
PT Telkom Indonesia (Persero) Tbk
CORPORATE
GOVERNANCE
CORPORATE SOCIAL
RESPONSIBILITY
PARTNERSHIP AND COMMUNITY
DEVELOPMENT PROGRAM
APPENDICES
CONSOLIDATED
FINANCIAL STATEMENTS
DIGITAL EMPLOYEE
EXPERIENCE
Providing digital convenience for employees through:
Teleconference & video conferencing (Permata & WEBEX);
Talent Management & Career Tools (Ingenuim); Digital
Learning (Cognitium); Corporate social media and file
sharing (Diarium), Cloud storage (Telkom drop-up);
Online & Mobile Office Memorandum; Office Live; Online
Procurement; Online Presence, Work diary and record
keeping; Data Analytic Library; Online Recruitment.
DIGITAL MOBILE
EXPERIENCE
Providing ease of access through
digital mobile app through: Telkom
solution; My IndiHome; My Telkomsel;
T-Money; UseeTV; Wifi ID.
DIGITAL CITIZEN
EXPERIENCE
Providing ease of the “Smart City Nusantara” urban service in the
form of Wi-Fi based Internet access service, Social Media Analytic
service, Digital Library services and Qbaca service.
DIGITAL SOCIETY
EXPERIENCE
Providing easy access to digital technology and information to the society, including
SME business owners, through the Kampung UKM Digital, and Pustaka Digital.
UKM GOES DIGITAL AND
KAMPUNG DIGITAL
In 2015, Telkom launched Kampung UKM Digital Program. By the end of 2017, we
expect to established 1,000 Kampung UKM Digital in Indonesia.
PUSTAKA DIGITAL
Telkom introduced 1,000 PaDI (Pustaka Digital) on May 4, 2016. It is a library
for e-Books through which we can encourage people to read and study. PaDi is
accessible at padi.qbaca.com
11
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS TO Be “THe KiNG OF DiGiTal iN
THe reGiON”
GrOWTH, sYNerGY, aND ValUes
is transforming
to become digital
Telkom Group
telecommunication
company that envisions to be “the King of Digital in The Region”, the king
of telecommunication and digital services in the air, land, and sea. Telkom
continues to digitalize a whole process, innovate to give the best customers
experience and implement lean and agile organization transformation to pursue
competitive advantage and digital capabilities.
INDONESIA HAS 252 MILLION OF POPULATION
SPREAD IN MORE THAN 17 THOUSAND ISLANDS
Makes digitalization to be a necessity
BECOMING THE BIGGEST DIGITAL ECONOMY
IN SOUTHEAST ASIA
Indonesia is now constructing digital economy all
over the country
12
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS CORPORATE
STRATEGY
DIRECTIONAL
STRATEGY
Disruptive
competitive
growth
Amid the challenging changes in the
industry, Telkom Group believes that
the market capitalization will grow
significantly. This is done by providing
added value to customers through the
provision of products and services,
promoting synergies and building a
strong digital ecosystem in both the
domestic and international markets.
PORTFOLIO
STRATEGY
Customer
value through
digital TIMES
portfolio
Telkom Group focuses on TIMES digital
portfolio through the provision of
convenient and convergent services
synergistically to deliver high values to
customers.
PARENTING
STRATEGY
Strategic
Control
To support business growth effectively,
Telkom Group implements the strategic
control approach to align business
units, functional units and subsidiaries
so that the process runs in a more
targeted, synergetic, and effective way
to achieve the company’s goals.
13
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS TELKOM GROUP
FINANCIAL AND
OPERATIONAL HIGHLIGHTS
MANAGEMENT REPORT
ABOUT TELKOM
INDONESIA
MANAGEMENT DISCUSSION
AND ANALYSIS
PrOViDiNG THe DiGiTal
sOlUTiON
THe FUTUre FOr eVerY TelKOm cUsTOmer seGmeNT
SMART
TRANSPORTATION
SMART
INFRASTRUCTURE
SMART CITIZEN
SMART
GOVERMENT
/EDUCATION
SMART
HEALTH CARE
SMART
SECURITY
SMART
BUILDING
SMART
ENERGY
SMART
TECHNOLOGY
SMART
CITY
CORPORATE
telecommunications and
information services,
Providing
including interconnection, leased lines, satellite, VSAT, contact
center, broadband access, data center and internet access to
corporate customers, small medium enterprises, government
institutions, wholesale, and international customers.
PERSONAL
Providing mobile telecommunication services and fixed
wireless mobile to personal customers.
PT Telkom Indonesia (Persero) Tbk
CORPORATE
GOVERNANCE
CORPORATE SOCIAL
RESPONSIBILITY
PARTNERSHIP AND COMMUNITY
DEVELOPMENT PROGRAM
APPENDICES
CONSOLIDATED
FINANCIAL STATEMENTS
For the corporate customer segment, we provided integrated service solutions
with the bandwidth consumption in service amounted to 2,524 Gbps in 2016.
Furthermore, we served 173.9 million mobile subscribers with 60 million mobile
broadband subscribers and 4.3 million fixed broadband subscribers with 1.62
million indiHome subscribers by the end of 2016.
Telkom has built smart city services in 219 cities in Indonesia.
SMART
SMART
TRANSPORTATION
INFRASTRUCTURE
SMART CITIZEN
SMART
GOVERMENT
/EDUCATION
SMART
HEALTH CARE
SMART
SECURITY
SMART
BUILDING
SMART
ENERGY
SMART
TECHNOLOGY
SMART
CITY
HOME
Providing fixed line telecommunications services, subscription
TV, data, and internet services to residential customers.
OTHERS
Provide building management services and facilities, including
the rental of office premises, hotel development, leasing of
commercial buildings, and transportation management.
PT Telkom Indonesia (Persero) Tbk
15
TELKOM GROUP
FINANCIAL AND
OPERATIONAL HIGHLIGHTS
MANAGEMENT REPORT
ABOUT TELKOM
INDONESIA
MANAGEMENT DISCUSSION
AND ANALYSIS
CORPORATE
GOVERNANCE
CORPORATE SOCIAL
RESPONSIBILITY
PARTNERSHIP AND COMMUNITY
APPENDICES
CONSOLIDATED
DEVELOPMENT PROGRAM
FINANCIAL STATEMENTS
TelKOm iNFrasTrUcTUre
sUsTaiNaBle iNVesTmeNT iN iNFrasTrUcTUre
is THe KeY TO serVe cUsTOmers BeTTer
Hawaii
Los Angeles
(USA)
Marseille
(France)
Italy
Egypt
Saudi
Arabia
Yemen
Djibouti
SEA-US*
15.000 km from Manado, Indonesia
to California, United States of America
Philippines
Guam
Sri Lanka
Batam
Dumai
Manado
SEA-ME-WE 5
20,000 km from Dumai,
Indonesia to Marseille, France
IGG*
Indonesia Global Gateway connecting
SEA-ME-WE 5, SEA-US and domestic network
id-Access
True
Broadband
Access
16.4 Million
Homes-passed
362,200
Access point Wi-Fi
95,000 sqm
Gross facility Data Center
*on construction
id-Con
Indonesia
Digital
Convergence
TELKOM GROUP
FINANCIAL AND
MANAGEMENT REPORT
OPERATIONAL HIGHLIGHTS
ABOUT TELKOM
INDONESIA
MANAGEMENT DISCUSSION
AND ANALYSIS
CORPORATE
GOVERNANCE
CORPORATE SOCIAL
RESPONSIBILITY
PARTNERSHIP AND COMMUNITY
DEVELOPMENT PROGRAM
APPENDICES
CONSOLIDATED
FINANCIAL STATEMENTS
In order to serve customers better as well as to grow digital business, Telkom
Group continues to invest in digital infrastructure including access network,
backbone network and data center. Inter-island and inter-continental optic
fiber becomes the foundation of Telkom’s digital business growth.
Marseille
(France)
Italy
Egypt
Saudi
Arabia
Yemen
Djibouti
SEA-US*
15.000 km from Manado, Indonesia
to California, United States of America
Philippines
Guam
Sri Lanka
Batam
Dumai
Manado
SEA-ME-WE 5
20,000 km from Dumai,
Indonesia to Marseille, France
IGG*
Indonesia Global Gateway connecting
SEA-ME-WE 5, SEA-US and domestic network
Hawaii
Los Angeles
(USA)
16.4 Million
Homes-passed
362,200
Access point Wi-Fi
Backhaul support
129,033 BTS Unit
Including 61% BTS 3G/4G
id-Ring
Nationwide
Broadband
Backbone
106.000 km
Fiber optic backbone
(including international
backbone network)
3 satellites
2 satellites with a total capacity
of 60 transponders
and Telkom 3S with a capacity of
42 transponders
(launched on February 15, 2017)
TABLE OF CONTENTS
Reading the Report Content
For ease of stakeholders, Telkom has divided this report into two main parts.
Part One, from the front page of the report to the “Management Report” and “Statement”, is dedicated to
readers who wants to understand Telkom in a short amount of time.
Investors and other stakeholders who want to know in detail about Telkom can continue to read this report from
Part One to Part Two, namely the “About Telkom” section and so forth until the end.
2 Disclaimer
4 report Theme
6
TELKOM GROUP
6
10
12
14
16
Brief Profile of Telkom and subsidiaries
Telkom Digital experience
To be “The King of Digital in the region”
Providing Digital solution
Telkom infrastructure
18
20
23
TABLE OF CONTENTS
FINANCIAL AND OPERATIONAL HIGHLIGHTS
STOCK HIGHLIGHTS
27 MANAGEMENT REPORT
28
34
42
report of the Board of commissioners
report of the President Director
statement of responsibility for the 2016 annual report
46 ABOUT TELKOM INDONESIA
Telkom indonesia identity
46
48
Vision and mission
50 a Brief History of Telkom
52
Business activities
54 awards and certifications
62
64
74
85
89
92
98
100 chronology of listing of Bonds and Other securities
102 Name and address of institutions and / or the capital market supporting
Telkom Organizational structure
Profile of Board of commissioners
Profile of Directors
Telkom indonesia employees
shareholders composition
subsidiaries, associated companies, and Joint Venture
chronology of registration of stocks
Professionals
105 MANAGEMENT DISCUSSION AND ANALYSIS
107 Operations Overview by segment
122 comprehensive Financial Performance
140 solvency
140 receivables collectability
141 capital structure
142 capital expenditure
144 material commitment for capital expenditure
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
indonesian Telecommunication industry
146 material information and Fact
146 macroeconomy
148
152 Business Prospect
153 comparison Between Targets and realizations
154 Targets for the Next Year
154 Dividend
155 realization of Public Offering Fund
155 material information (investments, divestments and acquisitions)
156 marketing Overview
158 changes in regulation
161 changes in accounting Policies
163 CORPORATE GOVERNANCE
164 road map and strengthen corporate Governance 2011 - 2017
166 corporate Governance Principle and Foundation
173 corporate Governance evaluation
174 General meeting of shareholders
182 Board of commissioners
190 audit committee
194 Nomination and remuneration committee
198 risk Planning, monitoring and evaluation committee
201 Board of Directors
212 corporate secretary
214
216
217 risk management system
224 Whistleblower system
226 significant legal Disputes
227
228 corporate culture
234 corporate code of ethics
234 employee stock Ownership Program
internal audit Unit
internal control systems
information regarding administrative sanctions
237 CORPORATE SOCIAL RESPONSIBILITY
239 csr strategy
239 csr for customers
240 csr for employee
243 csr for the community
247 csr for the environment
251 PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM
252 PcDP Highlight
253 PcDP report
265 APPENDICES
266 Glossary
270 list of abbreviations
272 cross reference for seOJK No. 30 Year of 2016
281 Feedback Form
282 CONSOLIDATED FINANCIAL STATEMENTS
283 audited consolidated Financial statements 2016
audited PcDP Financial statements 2016
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL AND OPERATIONAL HIGHLIGHTS
Financial Highlight
Consolidated Statements of Comprehensive Income
(in billion of Rupiah. except for net income per share
and per ADS)
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
Years ended on December 31
2016
2015
2014
2013
2012
116,333
102,470
89,696
82,967
77,143
77,888
59,498
39,195
29,172
19,352
9,820
71,552
51,415
32,418
23,317
15,489
7,828
61,564
57,700
54,004
45,673
41,776
39,757
29,206
27,846
25,698
21,274
20,290
18,362
14,471
6,803
14,205
6,085
12,850
5,512
Total comprehensive income for the year
27,073
23,948
22,041
20,402
18,388
Total comprehensive income attributable to:
• Owners of the parent company
• Non-controlling interest
• Net income per share
Net income per ADS (1 ADS : 100 common stock)
Consolidated Statement of Financial Position
(in billion of Rupiah)
Assets
Liabilities
Equity attributable to owner of the parent company
Net working capital (Current Asset - Current Liabilities)
Investment in associate entities
Capital Expenditure
(in billion of Rupiah)
Telkom
Telkomsel
Others Subsidiaries
Total
Consolidated Financial and Operation Ratios
Return on Asset (ROA (%)(1)
Return on Equity (%)(2)
Operating Profit Margin (%)(3)
Current Ratio (%)(4)
Total Liabilities to Equity Ratio (%)(5)
Total Liabilities to Total Assets Ratio(%)(6)
Debt to Equity Ratio(7)
Debt to EBITDA Ratio(8)
EBITDA to Interest Ratio9)
17,331
9,742
196.2
19,619
16,130
15,296
7,818
157.8
15,777
6,745
148.1
14,813
14,317
6,085
147.4
14,742
12,876
5,512
133.8
13,384
Years ended on December 31
2016
2015
2014
2013
2012
179,611
74,067
84,384
7,939
1,847
166,173
141,822
128,555
72,745
55,830
51,834
75,136
12,499
1,807
67,721
59,823
1,976
1,767
4,638
304
111,369
44,391
51,541
3,866
275
Years ended on December 31
2016
2015
2014
2013
2012
10,309
12,564
6,326
9,641
11,321
5,439
8,099
5,313
13,002
15,662
3,560
3,923
29,199
26,401
24,661
24,898
4,040
10,656
2,576
17,272
Years ended on December 31
2016
2015
2014
2013
2012
10.8
22.9
33.7
120.0
87.8
41.2
30.1
53.4
21.2
9.3
20.6
31.6
135.3
96.8
43.8
37.0
67.3
20.7
10.2
21.4
32.6
106.1
82.4
39.4
27.3
51.3
25.2
11.0
23.7
33.6
116.0
86.6
40.3
26.4
48.5
27.8
11.5
24.9
33.3
116.0
86.1
39.9
28.8
48.5
19.3
(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 owner of the parent company divided by total equity attributable to owner of the parent company
at year end December 31.
(3) Operating profit margin is calculated as operating profit divided by revenues.
(4) Current ratio is calculated as current assets 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) Liablities to total assets ratio is calculated as total liabilities divided by total assets at year end December 31.
(7) Debt to equity ratio is calculated as net debt divided by total equity attributable to owners of the parent company at year end December 31.
(8) Debt to EBITDA ratio is calculated as net debt divided by EBITDA.
(9) EBITDA to interest ratio is calculated as EBITDA divided by cost of fund.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
120,000
100,000
80,000
60,000
40,000
20,000
0
20,000
15,000
10,000
5,000
0
200,000
150,000
100,000
50,000
0
13.5%
yoy
Revenue
(in billions of Rupiah)
15.7%
yoy
EBITDA
(in billions of Rupiah)
116,333
102,470
89,696
82,967
77,143
59,498
51,415
45,673
41,776
39,757
60,000
50,000
40,000
30,000
20,000
10,000
0
2016
2015
2014
2013
2012
2016
2015
2014
2013
2012
24.9%
yoy
Net Income
(in billions of Rupiah)
24.3% (in billions of Rupiah)
yoy
Net Income/Share
19,352
15,489
14,471
14,205
12,850
196,2
157,8
148,1
147,4
133,8
200.0
150.0
100.0
50.0
0
2016
2015
2014
2013
2012
2016
2015
2014
2013
2012
8.1%
yoy
Total Asset
(in billions of Rupiah)
12.3%
yoy
Total Equity
(in billions of Rupiah)
179,611
166,173
141,822
128,555
111,369
84,384
75,136
67,721
59,823
51,541
100,000
80,000
60,000
40,000
20,000
0
2016
2015
2014
2013
2012
2016
2015
2014
2013
2012
21
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS OPERATIONAL HIGHLIGHT
Broadband Subscribers
Fixed broadband (1)
Mobile broadband
Unit
Years ended on December 31
2016
2015
2014
(000) subscribers
4,329
3,983
(000) subscribers
60,030
43,786
3,400
31,216
Total Broadband Subscribers
(000) subscribers
64,359
47,769
34,616
Cellular Subscribers
Postpaid (kartuHalo)
(000) subscribers
4,180
3,509
2,851
Prepaid (simPATI, Kartu As, Loop)
(000) subscribers
169,740
149,131
137,734
Total Cellular Subscribers
(000) subscribers
173,920
152,641
140,585
Fixed Line Subscribers
Fixed wireline (POTS)
Fixed wireless
Total Fixed Line Subscribers
Other Subscribers
Datacomm
Satelit-transponder
Network
BTS 2G
BTS 3G/4G
Total BTS(3)
Customer Services
PlasaTelkom
Grapari
Grapari Mobile
Employees
(000) subscribers
(000) subscribers
(000) subscribers
10,663
N/A(1)
10,663
10,277
N/A(2)
10,277
9,698
4,404
14,102
Mbps
MHz
unit
unit
unit
location
location
unit
764,397
1,907,012
930,327
6,801
4,648
3,560
50,344
78,689
48,394
54,895
46,398
39,022
129,033
103,289
85,420
566
416
487
572
414
392
572
409
268
people
23,876
24,785
25,284
(1) Total of broadband subscribers including IndiHome Triple Play subscribers is of 1.6 million, 1.1 million and 122 thousand in 2016, 2015, and 2014 respectively.
(2) Until the end of 2015, wireless subscribers were entitled to migrate to cellular subscribers.
(3) Since 2014 the BTS that we disclose is Telkomsel BTS.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
STOCK HIGHLIGHT
TELKOM’S STOCK AT IDX
Here we present a report of the highest, lowest and closing share prices, trading volumes, number of shares outstanding
and market capitalization of the common stock recorded at the Indonesia Stock Exchange (“IDX”) for the periods indicated:
Calendar Year
High
Low
Closing
Price per Share of Common Stock
(in Rupiah)
Volume
(shares)
Outstanding
Shares
Market
Capitalization
(in Rupiah)
2012
2013
2014
2015
1,990
1,330
1,810
23,002,802,500
95,745,344,100
182,448
2,580
1,760
2,150
27,839,305,000
97,100,853,600
216,720
3,010
2,060
2,865
24,035,761,600
98,175,853,600
288,792
3,170
2,485
3,105
18,742,850,400
98,198,216,600
312,984
First Quarter
3,020
2,770
2,890
5,209,728,100
97,100,853,600
291,312
Second Quarter
2,955
2,595
2,930
4,816,156,800
98,175,853,600
295,344
Third Quarter
2,970
2,485
2,645
4,061,559,500
98,175,853,600
266,616
Fourth Quarter
3,170
2,600
3,105
4,655,406,000
98,198,216,600
312,984
2016
4,570
3,045
3,980
23,017,915,300
99,062,216,600
401,184
First Quarter
3,510
3,045
3,325
5,852,647,000
98,198,216,600
335,160
Second Quarter
4,010
3,305
3,980
5,808,895,400
99,062,216,600
401,184
Third Quarter
4,570
3,950
4,310
5,821,745,500
99,062,216,600
434,448
Fourth Quarter
4,400
3,640
3,980
5,534,627,400
99,062,216,600
401,184
September
4,400
3,950
4,310
2,010,068,700
99,062,216,600
434,448
October
4,400
4,120
4,220
1,365,432,500
99,062,216,600
425,376
November
4,300
3,640
3,780
2,680,143,800
99,062,216,600
381,024
December
4,020
3,670
3,980
1,489,051,100
99,062,216,600
401,184
2017
4,030
3,780
3,850
2,770,417,700
99,062,216,600
388,080
January
4,030
3,780
3,870
1,280,778,000
99,062,216,600
390,096
February
3,980
3,830
3,850
1,489,639,700
99,062,216,600
388,080
On the last IDX trading day in 2016, which was on December 30, 2016, the closing price for our common stock was
Rp3,980 per share. With the share price, Telkom’s market capitalization reached Rp 401.2 trillion, or 7.0% of the total
capitalization in the Indonesia Stock Exchange (BEI).
Volume (in million shares)
Price (Rp)
500
450
400
350
300
250
200
150
100
50
0
1st Quarter
2015
2nd Quarter
2015
3rd Quarter
2015
4th Quarter
2015
1st Quarter
2016
2nd Quarter
2016
3rd Quarter
2016
4th Quarter
2016
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
TELKOM’S STOCK AT NYSE
In the table below, we present the highest, lowest and closing share prices as well as the trading volumes of Telkom’s
ADS stock recorded at the New York Stock Exchange (“NYSE”) for the periods indicated.
Calendar Year
High
Low
Closing
Price per ADS (NYSE)
(in US Dollars)
2012
2013
2014
2015
2016
2017
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
September
October
November
December
January
February
20.57
25.31
24.38
23.54
23.54
22.48
21.99
22.76
34.65
26.92
30.96
34.65
33.57
33.38
33.57
32.85
29.75
30.16
30.16
29.71
14.63
16.88
16.95
17.05
20.56
20.26
17.05
17.47
21.22
21.22
25.06
29.63
27.17
29.63
31.59
28.00
27.17
28.16
28.16
28.47
Volume
( ADS)
177,219,324
134,122,210
104,501,896
87,438,232
18,351,674
21,794,470
20,440,486
26,851,602
110,532,172
24,848,124
31,010,592
27,153,358
27,520,098
8,680,416
8,246,024
9,242,784
10,031,290
16,271,010
8,079,524
8,191,486
18.48
17.93
22.62
22.20
21.77
21.70
17.83
22.20
29.16
25.43
30.73
33.04
29.16
33.04
32.49
28.10
29.16
28.50
29.42
28.50
On the last trading day in NYSE for the year of 2016, which was on December 31, the closing price for Telkom’s 1
ADS was in the amount of $29.16. Effective from October 26, 2016, we changed the Depository Receipt (DR) from
1 Depository Shares (DS) representing 200 shares to 1 DS representing 100 shares. The presentation on the table
above have accommodated the ratio change.
Volume (in million shares)
Price (US$)
40
35
30
25
20
15
10
5
0
1st Quarter
2015
2nd Quarter
2015
3rd Quarter
2015
4th Quarter
2015
1st Quarter
2016
2nd Quarter
2016
3rd Quarter
2016
4th Quarter
2016
4
3.5
3
2.5
2
1.5
1
0.5
0
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
INFORMATION OF CORPORATE ACTIONS RELATED TO STOCK
On June 29, 2016, the Company sold back 172,800,000 treasury stock (equal to 864,000,000 treasury shares), which is
part of the phase IV buyback program with a total fair value of Rp3,259 billion (net of costs of sale of shares).
Other than the sale of treasury stock, the Company did not carry out any other stock-related corporate actions such
as stock split, reverse stock, dividend disbursement, distribution of bonus shares, Employee Stock Ownership Program
(ESOP), and changes to the nominal value of shares.
25
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI ManageMent
report
28
34
42
report of the Board of Commissioners
report of the president Director
Statement of responsibility for the
2016 annual report
TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI
report of the BoarD
of CoMMiSSionerS
hendri Saparini
President Commissioner
28
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI “
As an overview, we see that the performance of the Board of
Directors in 2016 was exceptional, which records a double-digit
growth for Revenue, EBITDA and Net Profit or triple double digit.
The Board of Directors was capable to prepare and execute
strategies, determine priorities as well as making adjustments
over the strategies based on the characteristic of the very
dynamic telecommunication industry.
”
Distinguished Shareholders and Stakeholders,
The Board of Commissioners expresses our gratefulness to
Allah SWT, the God almighty whose blessings have allowed
Telkom to successfully pass the year 2016 with an excellent
performance.
general View towards the Macro economy and
industry
Supervision and performance evaluation of
the Board of Directors During the Year of 2016
In performing the supervision function and giving the
recommendation towards the performance of the Board
of Directors, the Board of Commissioners emphasizes
on Telkom’s strategic activities and it oriented on the
improvement of the Company’s added value. Supervision
activities were conducted by the Board of Commissioners
by examining all reports, conducting meetings, both
In general, Indonesian economy in 2016 was in a good
internal meeting of the Board of Commissioners, or joint
condition. The deceleration of global economy does not
meetings between the Board of Commissioners and the
bring significant affect towards domestic economy that
Board of Directors periodically at the minimum of 12
was supported more by the household consumption. The
times. In performing its supervisory function, the Board
government has also worked hard to push the economy
of Commissioners was assisted by 3 (three) committees,
growth by issuing various economic policy packages
namely the Audit Committee, Nomination and Remuneration
as well as materializing government expenditure in the
Committee, as well as the Committee for Evaluation and
infrastructure sector. As a result, Indonesian economy in
Monitoring of Risk Planning (KEMPR).
2016 grew 5.02% which is higher than the previous year that
grew at 4.88%. In particular, Bureau of Statistic Centre (BPS)
As an overview, we see that the performance of the
has also recorded that the Information and Communication
Board of Directors in 2016 was exceptional, which
sector grew very well, way above the growth of the
records a double-digit growth for Revenue, EBITDA
national economy, which means that the Information and
and Net Profit or triple double digit. The Board of
Communication sector was one of the growth generators of
Directors was capable to prepare and execute strategies,
the domestic economy.
determine priorities as well as making adjustments over
the strategies based on the characteristic of the very
Year 2016 saw relatively
fair competitions
in the
dynamic telecommunication industry.
telecommunication
industry, especially
in the cellular
segment. The trend of telecommunication industry also
In 2016, Telkom obtained the Revenue in the amount of
moves towards digital services and leaving previous legacy
Rp116.3 trillion, which is 13.5% higher compared to the
services, namely voice call and SMS. Meanwhile, for the
previous year. Meanwhile, EBITDA grew by 15.7% to Rp59.5
fixed-line segment, the trend of industry is on the direction
trillion and Net Profit was recorded at Rp19.4 trillion or
towards the fiber-based broadband service. The demand
grew by 24.9% compared to the net profit in the previous
for this service will grow along with the increase of middle
year. From the operational side, Telkom has successfully
class society in Indonesia that yearns for higher quality
obtained the accumulation of fixed broadband customers
broadband services.
in the amount of 4.3 million up to the end of 2016, with
IndiHome triple play customers reaching 1.6 million as the
result of the hard works of the Company in socializing
the fixed broadband service. Meanwhile, on the cellular
business unit, the amount of Telkomsel’s customers is still
29
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI growing by 13.9% to have reached 173.9 million customers
expenditure especially in the infrastructure development.
from all over Indonesia.
We also expect for a relatively stable political situation,
despite the simultaneous 2017 governor election (Pilkada)
The Board of Commissioners would like to take this
in many provinces in Indonesia. This is very important to
opportunity to give appreciation for the excellent
allow for a conducive climate for business actors.
performance of the Board of Directors during that it
has successfully recorded an extraordinary financial
From the industrial aspects, we view that the trend of
performance by reaching triple double digit growth
change from legacy business to become digital business
for the Revenue, EBITDA, and Net Profit. Moreover,
continues. On one side this constitutes the challenge
Telkom does not only contribute to the development
for Telkom to transform itself to become a digital
of the telecommunication industry, but also give the
telecommunication company. On the other side, this change
multiplier effect on the social economy to the society
offers a major opportunity for growth, by considering that
through the creation of employments and through other
the penetration of smartphone or the consumption of
forms, especially the ease of connectivity which may be
data service amongst Indonesians people is still so much
utilized by the economic actors. Therefore, the Board
lower compared to developed countries. Moreover, the
of Commissioners will continuously give the motivation,
household need for higher quality fixed broadband service
direction, and feedback as part of its efforts to improve
continue to increase significantly.
the sustainable performance of the Company in the future.
Views on the Business prospect
We expect that the macro economy condition in 2017
grow above the average growth of the national economy.
This is supported by the increase of data service utilization,
will continue to be solid, and continue to be supported
in line with the growth of mobile broadband and fixed
by household consumption, including by expenditure on
broadband users as well as improvement in people’s digital
telecommunication, and to be supported by government
literacy on digital services.
The telecommunication industry is predicted to continue to
30
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI In the meantime, although it is not easy, the opportunity
through the implementation of the structure of Customer
to grow inorganically, both domestically and overseas,
Facing Unit (CFU) and Functional Unit (FU) to allow better
may be explored further in a smart way, especially those
and faster service for the customers.
opportunities that may add value and synergize Telkom
Group. In relation to this matter, Telkom should certainly
By developing
the
infrastructure of
the network
prepare itself in many aspects, including funding, technical
comprehensively, Telkom is actually playing the important
aspect, and human resources readiness.
role in developing the digital economy in Indonesia.
Broadband service, with all of its benefits, will be enjoyed
Any business prospect and opportunity will always pose
more by all classes of society in Indonesia, and the most
its own challenges and obstacles in the implementation,
important benefit is the access to economic activities that
such as challenges in aspects of government regulations,
are more and more limitless. One of the parts of ecosystem
business competitions, or the fast changes of the
that is important and must be strengthened is Telkom’s
technology. These challenges and obstacles must always
e-commerce platform namely blanja.com that may support
be anticipated by Telkom.
the marketing of the small and medium enterprise’s (UKM)
product in a broader and easier manner.
telkom’s transformation to Become Digital
telecommunication Company
The Board of Commissioners fully supports the efforts of
Telkom’s Board of Directors in achieving its vision, which is
Social and environment responsibility
As a business entity that dwells among the society, we fully
realize and commit that Telkom must give real contribution
to make Telkom the King of Digital in the Region. To achieve
in the form of Social and Environment Responsibility (TJSL).
such objective, Telkom should continuously develop the
In 2016, Telkom conducted TJSL program under the theme
infrastructure and ecosystem as a whole to achieve the
of “Telkom Indonesia for Indonesia”. The ultimate goal of
objective of the Company. Telkom has also transformed
TJSL Telkom is to assist the development of national digital
the organizational structure to become more lean and agile
economy by facilitating synergy with other State Owned
31
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI Enterprises (BUMN), such as through the establishment
of BUMN Creative House (RKB), Digital Village, and the
Hendri Saparini
development of Digital Library (PaDi).
Dolfie Othniel Fredric Palit
the implementation of good Corporate
governance in telkom
To ensure long term business continuity of the Company,
we always emphasize on the importance of implementing
good corporate governance. A number of prestigious
Hadiyanto
Pontas Tambunan
Margiyono Darsasumarja
Rinaldi Firmansyah
awards in the field of Good Corporate Governance (GCG),
Pamiyati Pamela Johanna
which among others was the Most Trusted Company
Waluyo
from the Indonesian Institute for Corporate Governance
: President Commissioner
: Commissioner
: Commissioner
: Commissioner
: Independent Commissioner
: Independent Commissioner
: Independent Commissioner
(IICG), shows Telkom’s commitment on the importance of
implementing and enforcing the GCG values based on the
Closing
The Board of Commissioners expresses its gratitude
best practices. The Company also continuously improves
and highest appreciation to the Board of Directors,
the implementation and enforcement of GCG values in
management, and all employees for the outstanding
order to give a strong foundation for the Company to be
support and cooperation in the year 2016. We hope that the
able to keep growing sustainably in the long term.
solid cooperation and continuous synergy will encourage
even better performance in the future.
assessment on the performance
of Committees under the Board of
Commissioners
In performing its supervision function, the Board of
Commissioners is assisted by 3 (three) committees, namely
We also express the same gratitude and appreciation to the
shareholders, customers, business partners, as well as other
stakeholders for the supports given to Telkom Group.
the Audit Committee, Nomination and Remuneration
In the future, Telkom will continue its effort to improve its
Committee, as well as KEMPR, which have given the full
value and give more benefits to all of our stakeholders, by
support to the Board of Commissioners so that it may perform
keep improving and preparing ourselves to realize the vision
its duties and functions to conduct the supervision towards
and mission as well as to actively participate in leading the
the Board of Directors of the Company in 2016. In general,
development of digital economy of Indonesia.
those three committees have performed their duties well
and able to cooperate with the Board of Commissioners and
management. We always support all Committees to ensure
Jakarta, March 30, 2017
hendri Saparini
President Commissioner
continuous improvement of their capability and broaden
their knowledge in general industry sector, business sector,
and finance as well as the telecommunication technology.
the Change of Composition within the Board
of Commissioners
In 2016,
the composition of Telkom’s Board of
Commissioners was changed whereby the Annual General
Meeting of Shareholders (AGMS) approved the honorable
dismissal of Bapak Parikesit Suprapto as an Independent
Commissioner who was then replaced by Bapak Margiono
Darsasumarja.
In this opportunity, we express our
gratitude for the role and excellent contribution of Bapak
Parikesit Suprapto as an Independent Commissioner
during his term of office in Telkom. In addition, AGMS also
approved the appointment of Bapak Pontas Tambunan
as a Commissioner. After such change, the Board of
Commissioners of Telkom then consists of seven member
of the Board, with the following composition:
32
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI Left to right (Sitting down):
Pamiyati Pamela Johanna Waluyo (Independent Commisioner),
Hendri Saparini (President Commisioner)
Left to right (Standing):
Hadiyanto (Commisioner), Margiyono Darsasumarja (Independent Commisioner),
Pontas Tambunan (Commisioner), Dolfie Othniel Fredric Palit (Commisioner),
Rinaldi Firmansyah (Independent Commisioner)
33
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI report of the BoarD
of DireCtorS
alex J. Sinaga
President Director
34
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI “
The strategy and hard works that we performed during 2016
have given positive results, with the success of Telkom to record
an excellent financial and operational performance.
”
Distinguished Shareholders, Board of Commissioners, and
Telkom continues to strengthen broadband connectivity
all Stakeholders,
services as its core business, develop digital mediation
platform and digital services. These are the three pillars
Please allow me, as a representative of the Board of
for Telkom’s digital business growth in order to increase
Directors, to express our gratefulness to the God Almighty
its competitiveness and company value, and to maintain
whose blessings have allowed PT Telkom Indonesia
its position among the Top-10 digital telcos in Asia Pacific
(Persero) Tbk to successfully pass 2016 by recording an
in 2020.
excellent financial and operational performance
Macroeconomic and telecommunication
industry Condition in 2016
Indonesian economy in 2016 has grown well and it is
Vision, the Company in 2016 has introduced three main
programs, namely Leading Mobile Digital Business, Drive
Digital Home and Enterprise, and Smart International
significant to give hope that the economic condition in the
Business Growth. These programs are the continuation to
upcoming years will grow even better. The government
the previous year’s program, with each program is now
In our efforts to create sustainable growth in achieving the
shows systematic efforts to facilitate business actors
more refined.
by
issuing various economic policy packages, and
consistently realizes the development of infrastructure
To reaffirm Telkom’s leading position in the Indonesian
that will eventually stimulate the growth of national
cellular industry, we took the initiative to optimize mobile
economy.
core business, by developing mobile broadband network
to increase its capability, coverage, capacity and service
Despite sluggish global economic growth, the Central
quality, and accelerating our mobile digital business
Statistics Agency (BPS) has recorded that the Indonesian
by providing innovative digital services such as digital
economy in 2016 was able to grow slightly better at 5.02%,
lifestyle, mobile payment, mobile advertising, M2M-IoT
compared to 4.88% in 2015. The telecommunication
and big data analytic.
industry, which is transforming to be a digital business,
grew quite well at 8.87%. This shows that the demand
Telkom continues to boost the growth of its Home and
for digital-based telecommunication services continues
Enterprise digital business segments, by focusing on
to grow, and it has even become a part of the basic
developing its services in broadband connectivity, digital
necessities of Indonesians.
content and digital solution for enterprise and small,
medium enterprises. We selectively develop ecosystem-
Strategy and Strategic policy
Telkom envisions “To be the King of Digital In the Region”,
based digital services such as e-commerce, e-payment,
e-health, and e-tourism through synergy and collaboration
which means that as a digital telco, Telkom is committed
with various corporations.
to provide various, customer experience-based, end-to-
end digital solution services.
35
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI To successfully implement the two above-mentioned
accordance to the international standards so that we have
programs, Telkom continues to strengthen the Indonesia
the competitive edge to operate more extensively in the
Digital Network (IDN), which is Telkom’s key infrastructure
global market.
and serves as the foundation for Telkom to run a high-
quality and reliable digital business. IDN consists of id-ring
or a fiber optic-based broadband highway that serves as
the urban network and the backbone that connects towns
and cities across the archipelago from Aceh to Papua; id-
access, which provides broadband access to customers.
It is a fixed broadband network using fiber optic and
3G/4G mobile broadband; id-Convergence, which is an
integrated IT platform service facilities comprised of data
2016 Company performance
The strategy and hard work that we performed during
2016 have resulted positively, with Telkom succeeded
in recording an excellent financial and operational
performance. The consolidated revenue has grown by
13.5% to the amount of Rp116.3 trillion. The Data, Internet
and Information Technology (excluding SMS) segments,
which are the main drivers for growth, have increased
center services, mediation platform and application and
by 31.5%. The segments’ contribution to Telkom’s total
security to develop an ecosystem for digital services.
revenue increased significantly, from 31.9% in 2015 to
37% in 2016. This signifies that the Company has moved
We continue
to explore business development
forward in the right direction to become the digital
inorganic domestic
opportunities
and global initiatives, selectively and prudently and in
through various
telecommunication company as we expect it to be.
consideration to synergy value. This is given the fact
The Company has also recorded quite a high earning
that technology and digital business are increasingly
growth excluding
interest,
tax, depreciation and
borderless. We always develop our digital competence in
amortization (EBITDA), which increased by 15.7% to
36
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI the amount of Rp59.5 trillion. The EBITDA margin grew
We launched IndiHome at the beginning of 2015. It is a
slightly to 51.1% compared to 50.2% in the previous year.
fiber optic-based, triple play service package of fixed line,
Even though the operational costs increase as we develop
high-speed Internet and IPTV. By the end of 2016 or less
infrastructure for cellular and fixed line segments, the
than two years since it was launched, IndiHome already
total increase of operational cost (excluding Revenue and
has 1.6 million customers.
others) is relatively moderate at 8.9% to become Rp77.9
trillion and it shows that Company is able to control the
We continue to augment our content in order to enrich
operational cost in an efficient manner. The Net Profit
our mobile and fixed customer experience, by increasing
increases significantly by 24.9% to the amount of Rp19.4
our shares in PT Melon Indonesia to 100% from 51%. PT
trillion.
Melon Indonesia has more than five million catalogue
of digital, Indonesian and foreign songs. Moreover, we
In terms of operational performance, Telkomsel remains
also cooperate with various music, video streaming and
the leader in Indonesia’s cellular market with 173.9 million
game providers to boost our fixed and mobile broadband
customers, increased by 13.9% compared to the previous
products’ appeal to the customers.
year. Mobile broadband customers reached 60.0 million or
grew 37.1%. The increase in mobile broadband customers
Our Enterprise segment recorded 2.524 Gbps bandwidth
and use escalated the data traffic to 958,7 Petabytes or
grew 94.8%. By the end of 2016, the mobile broadband
in service or about 65% out of the bandwidth enterprise
Indonesia. Such achievement was
market share
in
4G LTE service has covered 169 cities and districts all over
made possible as we focus on providing an integrated
Indonesia.
ICT solution, ranging from broadband connectivity
to managed services such as enterprise and Small,
37
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI Medium Enterprise (SME) ICT Solution for corporations,
Another important project that we finalized in 2016 is
government institutions and SMEs.
the 20.000-sqm, world-class data center in Jurong,
Singapore. The Company’s subsidiary, Telin Singapore,
In 2016, Telkom released Rp29.2 trillion capital expenditure
manages the Tier-3 and Tier-4 data center, which aims for
or approximately 25% out of the 2016 Revenue. This
capital expenditure was mainly used to strengthen the
infrastructure to anticipate the fast-growing need on
broadband service, either on the mobile or fixed segment.
global corporation segment. By the end of 2016, Telkom
has almost reach 100.000 sqm data center at home and
in the region.
Traders in the stock markets appreciated Telkom’s
Telkomsel continues to strengthen its network in terms
excellent financial and operational performance. At the
of capability, coverage, capacity and service quality.
closing of the last trading day in 2016, Telkom’s share
Throughout 2016, Telkomsel has built 25,744 base
price rose 28.2% to Rp3,980 per share. It performed
transceiver stations (BTS) and the end of the year
much better compared to 15.3% growth at the Jakarta
Telkomsel owns 129,033 BTS or increased by 24.9%,
Composite
Index and resulted
in Telkom’s market
compared to the previous year when roughly 61% of them
capitalization reaching Rp401.2 trillion. It was the second
were BTS for 3G/4G.
highest market capitalization of all companies listed in
the IDX and it made up about 7.0% out of the IDX total
To support the broadband service, we have approximately
16.4 million of homes-passed, which is used to support
our IndiHome customers, those who migrate from fiber
capitalization. In addition, by the end of 2016, Telkom
was ranked 9th in terms of market capitalization among
telecommunication operators Asia Pacific.
optic non-IndiHome, Enterprise broadband service,
backhaul node-B BTS 3G/4G, Wi-Fi access point and off-
load, as well as to support Telkom’s leading supply digital
business strategy.
Supporting the growth of indonesia’s Digital
economy
Telkom continues to bolster and enhance its infrastructure
as a whole as part of efforts to foster a digital society,
Apart from access network, we also bolster our urban,
which will serve as the main foundation to develop digital
fiber optic-based backbone network and we connect
economy in Indonesia. In the future, we expect that
various regions in the country. In 2016, the Company
as the digital economy grows, our national economic
has finalized the Sulawesi, Maluku, Papua Cable System
competitiveness in the global market will also grow.
(SMPCS) project to increase equality of the digital
information and communication technologies (ICT) in the
Our success is a realization of our loyal customers’ trust
eastern parts of Indonesia.
and appreciation to the Company’s willingness to fulfill
their expectations to have a quality yet affordable service
In our effort to make Telkom as an international data
throughout the country. Such service was made possible
hub, the Company and a number of operators, which
thanks to the meticulously well-planned infrastructure
joined forces in a consortium, has finalized the Southeast
development that we carried out right on target and in a
Asia – Middle East – Western Europe 5 (SEA-ME-WE
measurable manner. Telkom took the initiative to actively
5) underwater cable that stretches for 20,000 km
participate in fulfilling the needs of ICT infrastucture
and connects Indonesia (Dumai) with Middle East and
by taking up operational areas that covers all parts of
Western Europe (Marseilles, France). By the end of 2016,
Indonesia. We believe that the availability of an ICT
the Company now owns more than 106,000 km of fiber-
infrastructure will benefit and create better opportunities,
based backbone network as the SMPCS and SEA- ME-WE
including economic, for all elements of society.
5 networks are completed.
With other consortium, Telkom
is completing the
Telkom also built a number of digital ecosystems to provide
construction of Southeast Asia–United States (SEA-US)
a more integrated service. In regards to digital economy,
underwater cable that stretches for about 15,000 km and
Telkom has a few platforms, such as e-tourism through
connects Indonesia in Manado to the United States in
ITX or Indonesia Tourism Exchange, which users can
Los Angeles. We expect to complete the project by the
utilise to boost the tourism industry, indigo or an initiative
Apart from digital-based telecommunication infrastructure,
second half of 2017.
Telkom has also started the Indonesia Global Gateway
to encourage the establishment of a creative industry
platform, and an e-commerce platform, Blanja.com,
through which Telkom hopes to create a business climate
(IGG) project, which will connect Dumai to Manado and
conducive for micro business and SME players would have
integrate the SEA-ME-WE 5 and SEA-US into the Telkom
wider and faster access to the market and enjoy various
network. The project is expected to finish in 2018.
other ease of doing business.
38
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI illustration of Business prospects
The Company believes that opportunities for future
With this satellite, we hope to increase our capacity and
improve our customer service quality. Having this satellite
growth are still wide-open. Telecommunication service
is imperative to ensure equal distribution of ICT services
has become the basic need of the society, and in the
to remote areas, which our fiber optic network could not
future, its roles will be more vital, especially to support
reach, and to reduce our dependence to external satellite
the economic activities.
operators.
In the cellular segment, the penetration of smartphones
The Company leveraged its property assets, such as lands
is still relatively low at less than 50%, yet it is rapidly
and buildings that are idle due to network transformation,
growing. The wider penetration of smartphones will
and develop those assets into profitable properties such as
push the demand for mobile broadband services as well
office buildings, hotels, data centers and other productive
as various other relevant services, such as content and
investment items. The properties are then utilized by
application. In the fixed line segment, the penetration of
Telkom Group or included in various cooperations that our
fixed broadband services in Indonesia is still also very low
subsidiary Telkom Property conducts with third parties.
at less than 10%, as we have previously estimated. With
With the right business model, those assets could better
the burgeoning middle class, we believe that the demand
benefit the Company in the future.
for high quality broadband service in Indonesian homes
will increase.
On the other hand, the enterprise segment also offers
Since the beginning of 2016, Telkom has been undergoing
business transformation to develop its digital business
as well as improve customer experience. We conduct
opportunity for promising growth. As they strive to
the organizational transformation using the Customer
develop and compete in their fields, major companies
Facing Unit (CFU) approach, which unites subsidiaries
require better-integrated ICT solutions similar to the
under the same group based on the characteristics of
services that we provide. The SME segment has a big
their business segments. Moreover, we also established a
potential for growth given that most of SMEs in Indonesia
support unit called Functional Unit (FU). Based on this
still do not have access to reliable connectivity services.
approach, Telkom Group has 5 CFUs, namely CFU Mobile,
Moreover, various government institutions and regional
CFU Digital Services, CFU Enterprise, CFU Consumer and
governments are now more eager to utilize digital services
CFU Wholesale & International, as well as 4 FUs, namely
in improving their public services, such as the need to have
FU Finance, FU Digital & Strategic Portfolio, FU Human
a platform for their smart city program. By the end of 2016,
Capital Management and FU Network & IT Solutions.
Telkom has developed smart city services in 219 cities all
over Indonesia.
We also acknowledge the global trend where the
future growth of telecommunication companies will be
the implementation of Corporate
governance
The Company highly values good corporate governance
(GCG) principles and consistently improves the quality of
contributed by digital services. Therefore, the Company
its implementation in all levels of company’s operation.
has a systematic plan to keep exploring, cooperating, and
The good corporate governance implementation is aimed
investing in digital services field to anticipate the industry
to create a fair and accountable decision-making process,
trend. The Company also established subsidiaries as
so that it would be able it to fulfill the stakeholders’
corporate venture capital that will explore and invest in
expectations.
promising start-up companies.
The Company continuously tries to improve the policy
In 2016 the Company has successfully obtained the
and infrastructure of GCG support system through
Application Services License from the Ministry of
new initiatives in order to strengthen the quality
Telecommunication in Myanmar as well as the license
of good corporate governance
implementation,
from the American government, which allows Telkom to
namely the Reinforcement of Corporate Governance
offer ICT services to corporate customers [in the United
Structure, Reinforcement of Corporate Governance
States?]. With these licenses, we expect Telkom will
Process and Reinforcement of Culture, dubbed as the
continue to perform overseas.
Three Main Pillars.
On February 15, 2017, we have successfully launched the
Telkom-3S satellite from Guiana Space Centre, Kourou,
The Company also continuously strengthens
enterprise risk management (ERM)
the
implementation
French Guiana. This satellite brought 42 transponders,
with ongoing improvement in risk management policy
which include 24 C-Band transponders, 8 extended
and frameworks, including the improvement of internal
C-Band transponders and 10 KU-Band transponders.
control to ensure reliable financial reporting, considering
39
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI that the Company has adopted the International Financial
Reporting Standards (IFRS) since 2011.
Alex J. Sinaga
: President Director
Abdus Somad Arief
: Director
Throughout 2016, the Company has won various awards
Harry M. Zen
from independent parties as acknowledgement for the
implementation of GCG in Telkom. These awards are from
The Indonesian Institute for Corporate Governance (IICG),
Alpha Southeast Asia and Corporate Governance Asia.
Herdy R. Harman
Dian Rachmawan
Honesti Basyir
: Director
: Director
: Director
: Director
Corporate Culture
Our Corporate culture refers to The Telkom Way as
Closing
I am taking this opportunity, on behalf of the Board
the value system formulated as “Philosophy to be the
of Directors, to express our gratitude and highest
best, Principles to be the Star, and Practices to be the
appreciation for the support of all shareholders, Board
Winner.” Philosophy to be the Best is the value to drive
of Commissioners, business partners, as well as the
Telkom’s employees to be the best individual. The second
stakeholders, which has enabled Telkom to achieve an
Telkom Way or Principles to be the Star, constitutes of
excellent performance in 2016.
Solid, Speed, and Smart or the 3S basic principles, which
drives Telkom’s employee to possess excellence in the
We also express our high appreciation to the management
workplace. Lastly, Practices to be the Winner is a standard
of behavior in becoming a champion. The internalization
and all employees for their dedication and hard work in
ensuring the realization of this extraordinary performance.
of The Telkom Way values will always be implemented in
Therefore, we invite all management and employees to
various culture activation activities, cultural reinforcement
work harder to achieve an even better performance in the
and also as a part of daily work activities.
future.
the Change of Composition of within
Members of the Board of Directors
In 2016 there was a change in the composition of Telkom’s
Board of Directors. In the Annual General Meeting of
Shareholders (AGMS) on April 22, 2016; Mr. Harry M. Zen
replaced Mr. Heri Sunaryadi as the Finance Director. On 9
September 2016, the Director of Enterprise and Business
Jakarta, March 30, 2017
Service, Mr. Muhammad Awaluddin, was appointed as the
President Director of PT Angkasa Pura II (Persero). The
alex J. Sinaga
President Director
Company has appointed the Director of Wholesale and
International Service, Mr. Honesti Basyir, as the Official
Acting Director of Enterprise and Business Service. On
March 15, 2017, Director Digital and Strategic Portfolio, Mr.
Indra Utoyo, was appointed as Director of PT Bank Rakyat
Indonesia (Persero) Tbk. The Company has appointed the
Finance Director, Mr. Harry M. Zen as the Acting Director
Digital & Strategic Portfolio. Therefore, the composition
of the Board of Directors of Company is changed to be
as follows:
40
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI
Left to right
Harry M. Zen (Director), Dian Rachmawan (Director), Herdy R. Harman (Director),
Alex J. Sinaga (President Director), Indra Utoyo (Director), Honesti Basyir
(Director), Abdus Somad Arief (Director)
41
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI teLKoM groUp
iKhtiSar KeUangan Dan
KinerJa penting
ManageMent report
tentang teLKoM
inDoneSia
anaLiSa Dan
peMBahaSan ManaJeMen
StateMent of the MeMBer of
BoarD of CoMMiSSionerS anD BoarD of DireCtorS
regarDing With reSponSiBiLitY for 2016 annUaL report
pt teLKoM inDoneSia (perSero) tBK
We the undersigned hereby declare that all the information in the PT Telkom Indonesia (Persero) Tbk
2016 Annual Report has been presented in its entirety and that we assume full responsibility for the accuracy of
the content of the Company’s Annual Report.
This statement is made in all truthfulness.
Jakarta, March 30, 2017
Board of Commissioners
hendri Saparini
President Commissioners
hadiyanto
Commissioners
Dolfie othniel fredric palit
Commissioners
pontas tambunan
Commissioners
Margiyono Darsasumarja
Independent Commissioners
rinaldi firmansyah
Independent Commissioners
pamiyati pamela Johanna Waluyo
Independent Commissioners
parikesit Suprapto
Independent Commissioners
Board of Directors
alex J. Sinaga
President Director
harry M. Zen
Director of Finance
indra Utoyo
Director of Digital &
Strategic Portfolio
Dian rachmawan
Director of Consumer
Service
abdus Somad arief
Director of Network, IT
& Solution
herdy r. harman
Director of Human
Capital Management
honesti Basyir
Director of Wholesale &
International Service
and
Acting Director of Enterprise
& Business Service
heri Sunaryadi
Director of Finance
Muhammad awaluddin
Director of Enterprise & Business
Service
TELKOM GROUPIKHTISAR KEUANGAN DANKINERJA PENTINGMANAGEMENT REPORTTENTANG TELKOM INDONESIAANALISA DANPEMBAHASAN MANAJEMENTATA KELOLA PERUSAHAANTANGGUNG JAWAB SOSIAL PERUSAHAANPROGRAM KEMITRAAN DANBINA LINGKUNGANLAMPIRANLAPORAN KEUANGAN KONSOLIDASI tata KeLoLa
perUSahaan
tanggUng JaWaB SoSiaL
perUSahaan
prograM KeMitraan Dan
Bina LingKUngan
LaMpiran
Laporan KeUangan
KonSoLiDaSi
PT Telkom Indonesia (Persero) Tbk
43
44
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS ABOUT
TELKOM INDONESIA
46
48
50
52
54
62
64
74
85
89
92
98
100
102
Telkom Indonesia Identity
Vision and Mission
A Brief History of Telkom
Business Activities
Awards and Certifications
Telkom Organizational Structure
Profile of Board of Commissioners
Profile of Directors
Telkom Indonesia Employees
Shareholders Composition
Subsidiaries, Associated Companies, and
Joint Venture
Chronology of Registration of Stocks
Chronology of Listing of Bonds and Other
Securities
Name and Address of Institutions and/or
the Capital Market Supporting Professionals
45
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
TELKOM INDONESIA IDENTITY
LOGO
The new Telkom logo is stipulated in the Company Regulations No.PD.201.03/2014 on
New Corporate/Brand Identity dated June 20, 2014.
TAGLINE: THE wORLD IN YOUR HAND
The tagline conveys a message that Telkom will make things easier and more fun in
accessing the world.
MEANING Of LOGO
The logo refers to Telkom Corporate philosophy, Always The Best, which is a basic
belief that employees always give their best in every job they do and always
improving things to be in better condition, and will eventually shape Telkom to
become best telecommunications company.
46
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS COLOR PHILOSOPHY
Red - Brave, Love, Energy, Tenacious
Reflects the company spirit to always be optimistic and brave in facing
challenges.
White - Pure, Peace, Light, Unified
Reflects the spirit of Telkom to provide the best for the nation.
Black - Base Color
Symbolizes willpower.
Grey – Transition Color
Symbolizes technology.
47
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS TELKOM GROUP
fINANCIAL AND
OPERATIONAL HIGHLIGHTS
MANAGEMENT REPORT
ABOUT TELKOM
INDONESIA
MANAGEMENT DISCUSSION
AND ANALYSIS
VISION AND MISSION
Telkom’s vision and mission, enlisted in Telkom Long Term Plan document, which was approved and
signed by the Board of Commissioners on September 26, 2016.
Be the King of Digital
in the Region.
Lead Indonesian Digital Innovation and
Globalization.
48
48
PT Telkom Indonesia (Persero) Tbk
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS CORPORATE
GOVERNANCE
CORPORATE SOCIAL
RESPONSIBILITY
PARTNERSHIP AND COMMUNITY
DEVELOPMENT PROGRAM
APPENDICES
CONSOLIDATED
fINANCIAL STATEMENTS
Be the King of Digital
in the Region.
Lead Indonesian Digital Innovation and
Globalization.
PT Telkom Indonesia (Persero) Tbk
49
49
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS TELKOM BRIEf
HISTORY
Building History of Telkom
1856 - Telkom Was Established
In brief, Telkom’s history began on October 23, 1856, when the Government of the Netherlands for the first time in Indonesia
provided the first electromagnetic telegraph services connecting Batavia (Jakarta) and Bogor. October 23 was then established
as the day when Telkom was founded. Before the independence era, the Dutch government established “Post en Telegraafdienst”
that provided postal and telegraph services, and formed the Bureau of Post, Telegraph and Telephone (Post, Telegraph en
Telephone Dienst) which regulated the postal and telecommunications services.
After independence, the Government of Indonesia changed the company status to Perusahaan Negara Pos dan Telekomunikasi
(“PN Postel”) in 1961. In 1965, the Government launched a spin-off of telecommunications services by establishing a new
entity called the Perusahaan Negara Telekomunikasi (“PN Telekomunikasi”). PN Telekomunikasi became Perusahaan Umum
Telekomunikasi Indonesia (Perumtel) in 1974 and later it became a Limited Liability Company (Persero) PT Telekomunikasi
Indonesia based on PP No.25 of 1991 until now
Telkom in Globalization Era
1995 - Telkomsel Established and Telkom IPO
On May 25, 1995, PT Telekomunikasi Seluler (Telkomsel) was established and marked by the launch of postpaid SIM card kartuHalo.
Telkomsel has been consistent in serving the country, providing telecommunication access to the Indonesian people across the
archipelago. Telkomsel is an Indonesian cellular operator and has the most extensive network that covers more than 95% of the
population across the country and serve the communications need for all segments in the society.
Telkom business activities were initially divided into 12 Regional Telecommunications (Witel). In 1995, it was reorganized into
seven Regional Division (Divre), Divre I Sumatra, Divre II gretaer Jakarta areas, Divre III West Java, Divre IV Central Java and
Yogyakarta, Divre V East Java, Divre VI Kalimantan, and Divre VII Eastern Indonesia. In the same year, on November 14, 1995,
Telkom listed for the first-time its shares on the Jakarta Stock Exchange and Surabaya Stock Exchange. Telkom shares are also
traded on the NYSE (New York Stock Exchange) and LSE (London Stock Exchange) in the form of ADS and was publicly offered
without listing on the Tokyo Stock Exchange.
Telkom and New Paradigm in Digital Era
2012 - 2014 TIMES Portfolio
By the begining of the second decade of the millennium, in 2012 Telkom reaffirmed itself as the provider of TIMES (Telecommunication,
Information, Media, Edutainment and Services), in an effort to increase the business value creation. In addition, Telkom also built a new image
by launching a new corporate logo and tagline “the world in your hand”. A year later, Telkom expanded to other countries in Asia and America.
The new paradigm encourages Telkom to develop digital-based products and and invest in telecommunications infrastructure and
information. Telkom completed the submarine fiber optic cable project JaKaLaDeMa in April 2010, which links Java, Kalimantan,
Sulawesi, Denpasar and Mataram. Telkom’s submarine cable stretches from Asia to Europe and America.
Telkom also established the Telkom Nusantara Super Highway and True Broadband Access service, which provides internet access
with 20 Mbps - 100 Mbps capacity for people accross Indonesia. In December 2014, Telkom through its subsidiary Telkomsel
launched 4G services commercially. In the following year, Telkom created IndiHome that provides internet access, home phone,
and interactive TV (UseeTV cable TV) for its customers.
50
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Telkom in 2016
In order to advance to digital telco company, Telkom is
transforming its organization from four segments TIMES
(Telecommunication, Information, Media, Edutainment
and Services) based on digital business adjacent
portfolio to Customer Facing Unit and Functional Unit
model, or CFU and FU. The transformation will make
Telkom’s organization more lean and agile in adapting
to changes in the fast-changing telecommunications
industry. The new organization is also expected to
increase its efficiency and effectiveness to create a
quality customers experience.
51
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS BUSINESS ACTIVITIES
Telkom’s business activities have grown and changed along
with the development of technology, information and
digital, but still within the corridor of telecommunication
and information industries. This is evident from the
company’s business lines that are constantly developing
in addition to the existing legacy business. Currently,
Telkom manages six products portfolio which serve
four customer segments, namely corporate, residential,
individual and various other customer segments..
Business Activities based on Company’s
Articles of Association
The latest version of the articles of association of PT
Telkom Indonesia (Persero) Tbk No.20 dated May 23, 2015
stipulates that the purpose and objective of its business
activities are to operate the telecommunication network
and service, informatics as well as to optimize Company’s
resources.
In correlation with the said purpose and objective,
Telkom’s business activities include:
1. Main Businesses
a. To plan, construct, provide, develop, operate, market/
sale/lease and maintain telecommunication network
and informatics in a broad meaning by taking into
account the laws and regulations.
b. To plan, develop, provide, market/sale and improve
telecommunication and
informatics services
in a
broad meaning by taking into account the laws and
regulations.
c. To conduct investment including capital participation in
other company along with and to reach the Company’s
purpose and objective.
2.Supporting Businesses
a. To provide services for payment transaction and
transfer of money through telecommunication network
and informatics.
b. To conduct other activities and businesses in order to
optimize the resources owned by the Company, among
others utilization of fixed assets and current assets,
information system facilities, education and training
facilities, maintenance and repair facilities.
c. To cooperate with other party in order to optimize
the resources of informatics, communication and
technology owned by other party that are industry
player of informatics, communication and technology,
along with and to reach the Company’s purpose and
objective.
In general, Telkom’s business activities in the financial year
of 2016 have been in line with those that are presented in
the Company’s articles of association. Business activities
that are operated within last year has covered the provision
of services in the telecommunication, informatics, and
network, which were developed in various product
portfolios to maximize the Company’s resources.
Portfolio, Product and Service
In 2016, Telkom planned to transform its business
activities from four business segments in the TIMES
(Telecommunication, Information, Media) digital portfolio
into Customer Facing Unit and Functional Unit schemes,
or referred to as CFU and FU. Transformation is expected
to continue for the next 2-3 years and is expected to
improve the efficiency and effectiveness as well as
Telkom’s performance.
Below is the diagram that illustrates the transformation
into CFU/FU of Telkom.
52
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Business Segment
Product and Services Portofolio
CFU/FU
Personal
Mobile
Fixed
Wholesale &
International
Time
Corporate
Network Infrastructure
CFU
Mobile
CFU
Consumer
CFU
WIB
Enterprise
Digital
ICT Platform
Smart Enabler
Platform
Information
CFU
Enterprise
Home
Consumer Digital
Media
Edutainment
CFU
Consumer
CFU
Digital
Services
Others
Others
FU HCM - FU NITS - FU DSP - FU FINANCE
Diagram Telkom’s Business Segment and Business Portfolio Transformation into CfU/fU
Telkom’s four business segments that provide six
portfolios:
1. Mobile
This portfolio provides product portfolio comprised
of mobile voice, SMS and value-added services, as
well as mobile broadband. We provide mobile cellular
communications services through our subsidiaries,
Telkomsel, with brand name Kartu Halo for postpaid
and simPATI, Kartu As and Loop for prepaid.
2. fixed
This portfolio provides fixed service (voice and
broadband), with IndiHome brand.
3. wholesale & International
The products are interconnection services, network
service, Wi-Fi, VAS, hubbing, data center and content
platform, data and internet, and solution.
4. Network Infrastructure
The products are network
services,
satellite,
infrastructure and tower operations.
5. Enterprise Digital
Consists of information and communication technology
platform services and smart enabler platform services.
6. Consumer Digital
Consists of media and edutainment services, such as
e-commerce (blanja.com), video/TV and mobile-based
digital service. We also provide digital life service,
such as digital life style (LangitMusik and VideoMax),
digital payment such as TCASH, digital advertising
and analytics such as digital advertising business and
mobile banking solution and enterprise digital service,
which provides Internet of Things (IoT).
53
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS AwARDS AND CERTIfICATIONS
28 January
JANUARY
15. Telkom scored 722.25 and won the Industry Leader category in the
State-Owned Enterprise Mininstry implementation assessment or
“Kriteria Penilaian Kinerja Unggul (KPKU) BUMN 2015”.
21. Asian Most Admired Knowledge Enterprises (MAKE) 2016.
28. Top 10 Companies/Organization to Work For in Indonesian
Employers of Choice Award 2015.
MARCH
2 March
2. 12 Years of Achievement for State Owned Enterprises Category in
Obsession Award 2016.
3. Director of Network IT & Solution (NITS), Abdus Somad Arief was
chosen as The Most Influential Chief Information Officer (CIO)
3 March
5. Telkom won Digital Brand of the Year on State Owned
Enterprises category.
APRIL
MAY
3 May
3. Top Performing Listed Companies 2016 in Investor Award 2016.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 19. Respondents’ Choice Top 20 Ideal Company in Warta Ekonomi’s
Indonesia Most Admired Companies Award.
27. Telkom won 5 Gold, 6 Silver and 6 Bronze in various categories of
innovation in the Asia Pacific Stevie Award 2016. Telkom achieved
the highest award the Grand Stevie as the Organization of the Year
from Stevie International.
JUNE
2. Telkom won the Infrastructure, Transportation, and Utility category
in Bisnis Indonesia Award.
8. The 1st Champion of Indonesia Original Brand 2016 through Direct
International Call 007 (Telkom SLI 007).
9. Excellence
in Building and Managing Corporate
Image
in
Telecommunication category as well as The Best in Building
and Managing Corporate Image in Internet Provider category in
Corporate Image Award.
15. Alex J. Sinaga was awarded as Telecom CEO of the Year in Asia
Pacific ICT Award 2016.
19 May
27 May
15 June
17 June
17. Asia’s Best CEO for President Director of Telkom Alex J Sinaga,
Asia’s Best CFO to former CFO Heri Sunaryadi as well as Asia’s Best
Investor Relations Company in Asia Excellence Award.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 20 July
28 July
JULY
20. Ranked 1st in the Regional Top 80 Asia Pacific, Platinum
Award for Technology IT Services Industry, ranked 6th World
Top Worldwide Rank Annual Report 2015 in Vision Awards
from the Annual Report Competition League of American
Communications Professionals (LACP).
21. Ranked 1st in Indonesia’s Top 100 Most Valuable Brands 2015
with brand value US$2,620 million and brand rating AAA-
28. Telkom was one of the six Indonesian companies in the Forbes
Global 2000 List 2016 at the Forbes Global 2000 Awards.
AUGUST
25. Won the CSR category in Indonesia’s Best Companies Awards.
31. Selected as the corporation of choice by the Union of Press
Publishers in The 5th Indonesia Public Relations Awards (IPRAS).
1 September
SEPTEMBER
1. Best Annual Report in Indonesia: Ranked 1st in Most Organized
Investor Relations, and Most Consistent and Dividend Policy
categories respectively, ranked 3rd for Strongest Adherence to
Corporate Governance.
6. Best Employer 2016 and Best of The Best Employer 2016 in AON’s
Best Employer Award 2016.
6 September
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 8. Won awards in six categories; Best Employee Net Promotor Score,
Best Career Management Initiatives, Best Talent Management
Initiative, Best Employee Self Service Initiatives, Best of CEO
Commitment of Human Capital Development for Alex J. Sinaga.
These awards qualified Telkom as the Best of All Human Capital
Criterias (Best of the best) in the Indonesian Human Capital Study
(IHCS) 2016.
15. IndiHome’s Triple Play service won Best Brand Award in Indonesia
Best Brand Award (IBB Award) 201616.
8 September
15 September
3 October
OCTOBER
20 October
21 October
3. Telkom won the IDX TOP TEN Best Blue 2016 in The IDX Best Blue 2016
from the Indonesian Stock Exchange (IDX).
7. Telkom was one of the 40 Best Issuer in the Analysts’ Choice 40
Best Issuer Award from the IDX and Association of Indonesian
Exchange Analysts..
18. Indonesia Digital Learning (IDL) won The Best Program for Education
Quality Improvement category in Nusantara CSR Summit & Awards 2016
from La Tofi School of CSR.
19. Indihome won Great Performing Product for the Fixed ISP category
in the Digital Marketing Award.
20. Telkom was one of the Top 50 best performing Indonesian Companies
in Forbes Indonesia Best of The Best from Forbes Indonesia.
21. Telkom won the Grand Stevie Award for winning 19 awards in The
2016 International Business Award (IBA)
28. The Fastest Asset Growth Company in Telecommunication Industry
2016 in the 3rd Indonesia Living Legend Companies from Warta
Ekonomi.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS NOVEMBER
3 November
3. Telkom awarded as Telecom Service Provider of The Year and
Fixed Broadband Service Provider of The Year in Frost and
Sullivan’s Indonesia Excellence Award.
5. Corporate Communication Telkom won the Social Media for PR
and Digital Media Relations award in the International Public
Relations Association’s International Public Relations Golden
Awards 2016.
7. Telkom won The Best State-Owned Enterprise in The 8th IICD
Corporate Governance Award.
10. Indihome won an award as Fixed Internet Service Provider in the
SWA and Frontier’s Indonesian Customer Satisfaction Award.
7 November
17. Telkom was selected among the Top Companies to work for in
Asia in MORS Group’s ACES Award.
22. Telkom won an award in Metro TV’s Economic Challenges Award 2016.
23. Telkom won awards in six categories in TOP IT & TELCO 2016.
29. Telkom was awarded as Top Infrastructure on ICT.
22 November
23 November
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 7 December
DECEMBER
7. Telkom was predicated Very Good in GCG Management from
Indonesia Good Corporate Governance Award II 2016.
8. President Director of Telkom, Alex J. Sinaga, was listed in the Top 20
Indonesia Most Admired CEO 2016.
14 December
15 December
19 December
14. Telkom won Best Sustainability Report 2015 in the Infrastructure
category, and was 2nd Runner Up in the Sustainability Report
Award 2016.
15. Telkom won Best State Owned Enterprises 2016 in the Non-Financial
Category for the Telecommunications and Broadcasting Sector and
Alex J. Sinaga was awarded as Top Executive of Listed Company
2016 in the Indonesian Financial Figures 2016.
19. Telkom was awarded MOST TRUSTED COMPANY based on
Corporate Governance Perception Index, scoring at 91.18 and MOST
TRUSTED COMPANY based on Investors and Analysts Assessment
Survey.
22. Telkom ranked 1st in the Indonesia SOE Performance Award 2016 in
Telecommunication category.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Certifications
No
Year
Certification
Recipient
Institution
1
2
3
4
5
6
7
8
9
2013
2013
2013
2014
2014
2014
2015
2015
2015
ISO 9001:2008
Mitratel
United Register for System (URS)
ISO 9001:2008
Divisi Business Service
TUV Rheinland Cert GmbH
ISO 9001:2008
Telkom Akses
TUV Rheinland Cert GmbH
ISO 9001:2008
Telkom
ISO/IEC 27001:2013
Telkom
SGS United Kingdom Ltd
SGS United Kingdom Ltd
ISO/IEC 20000-1:2011 Telkom
SGS Hong Kong LLtd
ISO 22301:2012
Telkom
SGS International Certification Service
ISO 9001:2008
Telkom Infra
Singapore Pte Ltd
URS International
ISO 9001:2008
Telkom Metra
TUV Rheinland
10
2016
Tier III Data Center
Telkom Sigma
Uptime Institute
Validity
Period
2016
2016
2016
2017
2017
2017
2017
2018
2018
2017
Certification for
Constructed
Facilities (TCCF)
Sentul
11
2016
Tier III Data Center
Telkom Sigma
Uptime Institute
2017
Certification for
Constructed
Facilities (TCCF)
Serpong
12
2016
Tier III Data Center
Telin
Uptime Institute
Certification
13
2016
Tier IV Data Center
Telin
Uptime Institute
14
15
16
2016
2016
2016
Certification
ISO 20000 - 1:2011
Telin
PT SGS
ISO 9001 : 2015
Telkom Property
LLOYD Register
ISO 17025:2008
Testing Laboratory
National Accreditation Committee
(Divisi Digital Service)
2018
2019
2019
2019
2019
17
2016
ISO 17025:2008
Calibration Laboratory
National Accreditation Committee
2019
(Divisi Digital Service)
60
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Alex J Sinaga • CEO Telkom Group
61
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS TELKOM ORGANIZATIONAL STRUCTURE
Diagram of Telkom organizational structure as of December 31, 2016.
President Director
Alex Janangkih
Sinaga
Director of
Enterprise & Business
Service (COO)
(Honesti Basyir)
Director of Consumer
Service (CRO)
(Dian Rachmawan)
Director of wholesale &
International Service
(Honesti Basyir)
Director of Network, IT &
Solution
(Abdus Somad Arief)
Director of Digital &
Strategic Portfolio
(Indra Utoyo)
VP Enterprise
Planning Strategy
(Wisnu Haryadi)
VP Enterprise
Bussiness Development
(Ilmianto)
VP Enterprise
Parenting Operation
(Bagyo Nugroho)
VP Planning &
Resource Mgt
(Teni Agustini)
VP Marketing
Management
(Jemy)
OVP Consumer
Fulfillment
(Sujito)
VP Wholesale &
International
Development
(Mohamad Ramzy)
VP Wholesale
& International
Voice
(Erik Orbandi)
VP Wholesale &
International Network
Service
(Bastian Sembiring)
VP Infrastructure Strategy
& Governance
(Pramasaleh Hario Utomo)
SVP Synergy & Portfolio
(Achmad Sugiarto)
VP IT Strategy &
Governance
(Sihmirmo Adi)
VP Portfolio
Management
(Kukuh Pribadijanto)
VP Solution
(Admiral Dasrin)
EVP Strategic
Investment
(Setyanto Hantoro)
VP Enterprise
Performance Integration
(Joni Heri)
OVP Consumer
Assurance
(Agus Winarno)
VP Infrastructure
Management
(Moh Riza Sutjipto)
VP COO Supervision
(Devi Alzy)
EVP
Enterprise Service Division
(Siti Choiriana)
EVP
Business Service Division
(Tri Gunadi)
EVP Government Service
Division
(Mohammad Salsabil)
ICTO Project Business
Service
(Otto Benny Hantoro)
ICT Project Business
Public Transportation
Services
(Aziz Sidqi)
MILES Project Business
(Natal Iman Ginting)
EGM TV Video Division
(Aris Hartoni)
EVP wholesale Service
Division
(Priyono)
EGM Service
Operation Division
(Herlan Wijanarko)
EGM Service & Solution
Division
(Imam Santoso)
EGM Planning &
Deployment Division
(Alip Priyono)
Turn Around Project
Business
(Akhmad Ludfy)
Satellite Project of Telkom
(Tonda Priyanto)
VP Strategic
Investment Planning
(Yusuf Wibisono)
VP Strategic
Investment Execution
(Bhimo Aryanto)
SVP Media & Digital
Business
(Joddy Hernady)
VP Media &
Digital Strategy &
Development
(Ign. Wiseto
Prasetyo Agung)
VP Media & Digital
Parenting &
Performance
(Asli Brahmana)
VP Corporate Strategic
Planning
(Torkis Ropinda
Sihombing)
EGM Divisi
Digital Service
(Arief Musta’in)
Project CfU
Transformation
(Saiful Hidajat)
EVP Telkom Regional I
(Stanislaus Susatyo)
EVP Telkom Regional II
(Teuku Muda Nanta)
EVP Telkom Regional III
(I Ketut Budi Utama)
EVP Telkom Regional IV
(Joko Raharjo)
EVP Telkom Regional V
(Suparwiyanto)
s
r
o
t
c
e
r
i
D
f
o
d
r
a
o
B
62
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Director of finance
(Harry M. Zen)
Director of Human
Capital Management
(Herdy Rosadi Harman)
SVP Financial Planning &
Analysis
(Edi Witjara)
VP HC Strategic
Management
(Dwi Heriyanto B)
VP Budgeting &
Analysis
(Fajar Wibawa)
VP HC Development
(Dharma Syahputra)
VP Corporate
Finance
(Siti Rakhmawati)
VP HC Organizational
Effectiveness
(Djonet Hartono)
VP Subsidiaries &
Business Alignment
(Yogi Sukmana)
VP Telkom Smart Office
(Ardi Purwanto)
VP Financial, Asset &
Logistic Policy
(Muchamad Noor Hidayat)
VP Risk & Process
Management
(Jajat Sutarjat)
VP Investor Relation
(Andi Setiawan)
SGM Assesment Center
Indonesia
(Teuku Zilmahram)
SGM SSO
finance Center
(Sunarto)
SGM SSO
Procurement &
Sourcing Center
(Weriza)
Project
T-ISCM
SGM Community
Development Center
(Mochamad Sulthonul
Arifin)
SGM Human Capital
Business Partner Center
(Yul Martin)
SGM Telkom Corporate
University Center
(Danang Baskoro
Dwinugroho)
EVP Telkom Regional VI
(Edwin Aristiawan)
EVP Telkom Regional VII
(Mohammad firdaus)
SVP Corporate
Secretary
(Afriwandi)
SVP Internal Audit
(Harry Suseno
Hadisoebroto)
SVP Program
Management Office
(Ikhsan)
Personal
Assistant
BOD
VP Planning &
Development Audit
(Yanti Iswari)
PMO
Controller
Team
VP Corporate
Communication
(Arif Prabowo)
VP Infrastructure &
Operation Audit
(Dani Ramdani)
VP Regulatory
Management
(Henry Christiadi)
VP Information
Technology Audit
(Setia Dwi
Kusumawardani)
VP Corporate
Office Support
(Hardi Purwanto)
VP Integrated &
Financial Audit
(Heru Muara Sidik)
VP Legal &
Compliance
(Junian Sidharta)
63
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS BOARD Of COMMISSIONER PROfILES
HENDRI SAPARINI (President Commissioner)
Personal
Born
: Kebumen, June 16, 1964.
Age
: 52 years.
Citizenship and Domicile
Hendri Saparini is 52 years old and was born in Kebumen, on
June 16, 1964, she is an Indonesian citizen and lives in Jakarta.
Besides being President Commissioner, Hendri Saparini
concurrently is the Founder of Center of Reformation (CORE)
Indonesia as well as member of the National Economic and
Industry Committee.
Education
Hendri Saparini’s educational background is a Bachelor’s
Degree from Universitas Gadjah Mada majoring in Economics
in 1988, a Masters of International Development Policy, and
Doctoral degree on International Political Economy, both
from University of Tsukuba, Japan.
Position and Appointment Basis
Her position of being a President Commissioner of Telkom
is in accordance with the basis of appointment as a member
of BOC that is not an Independent Commissioner, which is
documented in Minister of State Owned Enterprise Letter
No.SR-7777/MBU/2/2014 about proposal to change the
board of PT Telkom Indonesia (Persero) Tbk, which was read
at the Extraordinary General Meeting of Shareholder dated
December 19, 2014. This decision is effective from December
19, 2014 until the fifth Annual General Meeting of Shareholder
since her appointment.
Previous work experience and its time period are presented as follows:
No.
Position
Member of National Economic and Industry Committee
Think Tank Independent CORE Indonesia
Guest Lecturer at LAN, Lemhanas and various Government Institutions
Budgetary Consultant for the Indonesian House of Representative Secretariat General 2009 - 2012
Managing Director, ECONIT Advisory Group
Member Committee OJK Development of Sharia Service
2005 - 2013
2004 - now
Period
2016 - now
2013 - now
2009 - now
1
2
3
4
5
6
64
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS DOLfIE OTHNIEL fREDRIC PALIT (Commissioner)
Personal
Born
: Kijang, Kepulauan Riau, October 27, 1968
Age
: 48 years.
Citizenship and Domicile
Dolfie Othniel Fredric Palit is 48 years old and was born
in Kijang, Kepulauan Riau, on October 27, 1968, he is an
Indonesian citizen and lives in Jakarta. He doesn’t hold any
position in other companies apart from being a member of
Telkom’s Board of Commissioners.
Education
Dolfie Othniel Fredric Palit ’s educational background is a
Bachelor’s Degree from Institut Teknologi Bandung in 1995.
Position and Appointment Basis
His position of being a Commissioner of Telkom is in
accordance with the basis of appointment as a member
of BOC that is not an Independent Commissioner, which
is documented Minister of State Owned Enterprise Letter
No.SR-7777/MBU/2/2014 about proposal to change the
board of PT Telkom Indonesia (Persero) Tbk, which was read
at the Extraordinary General Meeting of Shareholder dated
December 19, 2014. This decision effective from December
19, 2014 until the fifth Annual General Meeting of Shareholder
since his appointment.
Previous work experience and its time period are presented as follows:
No.
Position
Executive Director, Yayasan Bumi Indonesia Hijau
Executive Director, Lembaga Konsultan Strategis (Strategic Planning) Riset
Kebijakan dan Otonomi daerah (REKODE)
Members of Indonesian House of Representative
Coordinator, Indonesia Corruption Watch (ICW)
Bank Century Supervisory team
Member of Budget Committee of House of Representative
1
2
3
4
5
6
7
Special Committee of the Law on the Healthcare and Social Security Agency
2011
65
Period
2001-2003
2004-2009
2009-2014
2010
2012 - 2014
2012 - 2014
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS HADIYANTO (Commissioner)
Personal
Born
: Ciamis, October 10, 1962.
Age
: 54 years.
Citizenship and Domicile
Hadiyanto is 54 years old and was born in Ciamis, on October
10, 1962, he is an Indonesian citizen and lives in Bogor. In
addition to being a member of Telkom BOC, Hadiyanto is
concurrently a Secretary General of the Ministry of Finance.
Education
Hadiyanto ’s educational background is a Bachelor’s Degree
from Universitas Padjajaran majoring in Law, a Master of Law
(LLM) from Harvard University Law School in the United States,
and a Doctoral degree in Law from Universitas Padjajaran.
Position and Appointment Basis
His position of being a Commissioner of Telkom is in accordance
with the basis of appointment as a member of BOC that is not
an Independent Commissioner, which is documented in Minister
of State Owned Enterprise Letter No.SR-244/MBU/2012 about
change to the Board of the Commissioner of the company,
which was read at the Annual General Meeting of Shareholder
dated May 11, 2012. This decision effective from May 11, 2012
until the fifth Annual General Meeting of Shareholder since his
appointment.
Previous work experience and its time period are presented as follows:
No.
Position
1
2
3
4
5
General Director for State Asset of the Ministry of Finance
Head of the Legal of Secretariat General of the Ministry of Finance
Alternative Executive Director, World Bank
President Commissioner, PT Garuda Indonesia Tbk
President Commissioner of PT Bank Export Indonesia
Period
2006 - 2016
2005 - 2006
2003 - 2005
2007 - 2012
2007 - 2009
66
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS PONTAS TAMBUNAN (Commissioner)
Personal
Lahir
: Jakarta, February 16, 1961.
Usia
: 56 years.
Citizenship and Domicile
Pontas Tambunan is 56 years old and was born in February
16, 1961 in Jakarta, he is an Indonesian citizen and lives in
Bekasi. In addition to being a member of Telkom BOC, Pontas
Tambunan is concurrently as Deputy for the Construction and
Transportation Facilities of Ministry of SOE.
Education
Pontas Tambunan’s educational background is a Bachelor’s
Degree of law from Tarumanegara University in 1986, a Master
from Gadjah Mada University in 2006.
Position and Appointment Basis
His position of being a Commissioner of Telkom is in
accordance with the basis of appointment as a member
of BOC that is not an Independent Commissioner, which is
documented in Minister of State Owned Enterprise Letter No.
SR-241/MBU/04/2016 about proposal to change the board of
The Company, which was read at the Annual General Meeting
of Shareholder dated April 22, 2016. This decision effective
from April 22, 2016 until the fifth Annual General Meeting of
Shareholder since his appointment.
Previous work experience and its time period are presented as follows:
No.
Position
Period
Deputy for the Construction and Transportation Facilities of Ministry of SOE
2015 - now
Assistant Deputy for the Infrastructure and Logistic Business Sector Ministry of SOE 2010 - 2012
Assistant Deputy for the Transportation Facilities Business Sector Ministry of SOE
2006 - 2012
1
2
3
4
Commissioner PT Pertamina EP
5
Finance Director of PT Perkebunan Nusantara V
6
7
8
Commissioner of PT Wijaya Karya (Persero) Tbk
Commissioner of Pelabuhan Indonesia II (Persero)
Commissioner of PT Sucofindo (Persero)
2015 - 2016
2012 - 2015
2001 - 2012
2010 - 2012
2010 - 2012
67
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS MARGIYONO DARSASUMARJA (Independent Commissioner)
Personal
Born
: Klaten, September 14, 1976.
Age
: 40 years.
Citizenship and Domicile
Margiyono Darsasumarja is 40 years old and was born in Klaten,
on September 14, 1976, he is an Indonesian citizen and lives in
Jakarta. He doesn’t hold any position in other companies apart
from being a member of Telkom’s Independent Commissioners.
Education
Margiyono Darsasumarja’s educational background
is a
Bachelor’s Degree from Universitas Indonesia majoring in Law
in 2008, and a Master’s degree in Cyber Law from the School
of Law University of Leeds in 2012.
Position and Appointment Basis
His position of being an Independent Commissioner of
Telkom is in accordance with the basis of appointment as a
member of BOC that is an Independent Commissioner, which
is documented in Minister of State Owned Enterprise Letter
No.SR-209/MBU/04/2015 about proposal to change the
board of The Company, which was read at the Annual General
Meeting of Shareholder at April 17, 2015 and his position
changes from Commissioner into Independent Commissioner
based on the Minister of State Owned Enterprise Letter No.
SR-241/MBU/04/2016 dated April 22, 2016 about proposal
to change the board of The Company which was read at the
Annual General Meeting of Shareholder at April 22, 2016. This
decision effective from April 22, 2016 until the fifth Annual
General Meeting of Shareholder since his first appointment.
Previous work experience and its time period are presented as follows:
No. Position
Media Development Manager at Voice of Human Rights Media
1
2
3
68
Coordinator of Advocacy and Partnership for Government Reform of the Bureaucracy
2012 - 2015
reform Project
Lecturer In Law and Media Ethics at Bakrie University
2012 - 2014
Period
2001 - 2011
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS RINALDI fIRMANSYAH, CfA (Independent Commissioner)
Personal
Born
: Tanjung Pinang, June 10, 1960.
Age
: 56 years.
Citizenship and Domicile
Rinaldi Firmansyah is 56 years old and was born in Tanjung
Pinang, on June 10, 1960, he is an Indonesian citizen and lives
in Jakarta. In addition to being a member of Telkom BOC,
Rinaldi Firmansyah also has several concurrent positions
at other companies, including; Advisory Board Member
at Daestrum Capital; Commissioner of PT Elnusa Tbk; and
Commissioner of PT Bluebird, Tbk.
Education
Rinaldi Firmansyah’s educational background is a Bachelor’s
Degree from Bandung Institute of Technology in 1985, a
Master of Business Administration from IPMI in 1988, and a
Doctoral degree in Management from Padjajaran University
in 2014
Position and Appointment Basis
His position of being an Independent Commissioner of
Telkom is in accordance with the basis of appointment as a
member of BOC that is an Independent Commissioner, which
is documented in Minister of State Owned Enterprise Letter
No.SR-209/MBU/04/2015 about proposal to change the
board of The Company, which was read at the Annual General
Meeting of Shareholder dated April 17, 2015. This decision
effective from April 17, 2015 until the fifth Annual General
Meeting of Shareholder since his appointment.
Previous work experience and its time period are presented as follows:
No. Position
1
2
3
4
5
6
7
Advisory Board Member of Daestrum Capital
Commissioner of PT Indosat Tbk
Commissioner of PT Elnusa Tbk
Commissioner of PT Bluebird Tbk
President Commissioner of PT PLN Batam
CEO, PT Telekomunikasi Indonesia Tbk
CFO, PT Telekomunikasi Indonesia Tbk
Period
2016 - now
2015
2014 - now
2013 - now
2013 - 2016
2007 - 2012
2004 - 2007
69
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS PAMIYATI PAMELA JOHANNA wALUYO (Independent Commissioner)
Personal
Born
: Jakarta, June 20, 1958.
Age
: 58 years.
Citizenship and Domicile
Pamiyati Pamela Johanna Waluyo is 58 years old and was
born in Jakarta, on June 20, 1958, she is an Indonesian
citizen and lives in Jakarta. She doesn’t hold any position
in other companies apart from being a member of Telkom’s
Independent Commissioners.
Education
Pamiyati Pamela Johanna Waluyo’s educational background
is a Master’s degree from the University of Tech. Delft,
Netherlands in 1983.
Position and Appointment Basis
Her position of being Independent Commissioner of Telkom
is in accordance with the basis of appointment as a member
of BOC that is an Independent Commissioner, which is
documented in Minister of State Owned Enterprise Letter No.
SR-209/MBU/04/2015 about proposal to change the board of
The Company, which was read at the Annual General Meeting
of Shareholder dated April 17, 2015. This decision effective
from April 17, 2015 until the fifth Annual General Meeting of
Shareholder since his appointment.
Previous work experience and its time period are presented as follows:
No. Position
1
2
3
Director of Corporate Marketing, Obession Media Group
Assistant Director of Sales and Marketing, Metro TV
Corporate Public Relations, Metro TV & Media Group
Period
2014 - 2015
2006 - 2014
2000 - 2006
70
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Previous Board of Commissioner Profile
PARIKESIT SUPRAPTO (Independent Commissioner)
Period May 2012 - April 2016
Personal
Born
: Surabaya, August 8, 1951.
Age
: 65 years.
Citizenship and Domicile
Parikesit Suprapto is 65 years old and was born in Surabaya,
on August 8, 1951, he is an Indonesian citizen and lives
in Tangerang. Currently, Parikesit Suprapto served as
Independent Commissioner of PT Bank Bukopin.
Education
Parikesit Suprapto’s educational background is a Bachelor’s
Degree from Sekolah Tinggi Manajemen Industri majoring in
Corporate Economics, and a Master’s degree in Economic
Development from Indiana University in United States, and a
Doctoral degree in Development Economics from University
of Notre Dame, Indiana, United States.
Position and Appointment Basis
His position of being an Independent Commissioner of
Telkom is in accordance with the basis of appointment as a
member of BOC that is not an Independent Commissioner,
which is documented Minister of State Owned Enterprise
Letter No.SR-7777/MBU/12/2014 about proposal to change
the board of PT Telkom Indonesia (Persero) Tbk, which was
read at the Extraordinary General Meeting of Shareholder
dated December 19, 2014. The decision to appoint him as an
Independent Commissioner took effect from December 18,
2014 until April 22, 2016.
Previous work experience and its time period are presented as follows:
No. Position
Independent Commissioner of PT Bank Bukopin
Commissioner at PT KPEI (Kliring Penjamin Efek Indonesia)
Deputy of Services Business at Ministry of State Owned Enterprise
1
2
3
4
5
6
7
8
Period
2013 - sekarang
2013 - 2016
2010 - 2012
Deputy of Financing and Banking Industry State at Ministry of State Owned
2008 - 2010
Enterprise
Expert Advisor of Minister of Cooperation and Micro Small and Medium Enterprise
2006 - 2008
Commissioner at PT Indosat Tbk
Commissioner at PT Bank Negara Indonesia (Persero) Tbk.
President Commissioner at PT Pusri (Persero)
2011
2008 - 2010
2008 - 2012
71
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Education and/or Training, Seminar, Congress
To improve the competence of the members of the Board of Commissioners, Telkom provides an opportunity for
members of the Board of Commissioners to participate in education and training throughout the financial year 2016.
No. Education/Training, Seminar, Congress
Commissioner Name
Time
Place
1
Mobile World Congress
1. Hendri Saparini
February 22-25, 2016 Barcelona,
2. Margiyono
Darsasumarja
3. Dolfie Othniel
Fredric Palit
4. Pamijati Pamela
Johanna Waluyo
Spain
2
3
4
5
6
ERM in The Digital Age Conference
Hadiyanto
March 28-29, 2016
Singapore
Innovation Center Partnership with SK
1. Rinaldi Firmansyah
May 10-12, 2016
Seoul, South
Telecom
2. Pamijati Pamela
Johanna Waluyo
3. Margiyono
Darsasumarja
Korea
Update Knowledge Technology
Pontas Tambunan
August 3-5, 2016
Shenzen, China
Executive Leadership and Risk Management
Rinaldi Firmansyah
September 26-29,
Chicago, USA
Program
2016
Practical Risk Appetite and Risk Tolerance
1. Dolfie Othniel
October 11-12, 2016
London, UK
Conference
Fredric Palit
2. Margiyono
Darsasumarja
7
The Digital Education Show
1. Hendri Saparini
October 17-19, 2016
Johannesburg,
3 Day in House Payment Disruptors
2. Pamijati Pamela
Johanna Waluyo
Margiyono
Darsasumarja
South Africa
November 9-11, 2016
Yogyakarta,
Indonesia
Huawei International Finance Day
1. Hendri Saparini
November 10-11, 2016
Tokyo, Japan
2. Hadiyanto
8
9
72
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Commissioner Affiliation Relationships
In accordance with the principle of transparency to implement GCG, Telkom declares affiliation with the other
members of the BOC and major shareholders, including the name of the affiliated party
Name Board of
Commisioners
(BOC)
Hendri Saparini
Hadiyanto
Dolfie Othniel
Fredric Palit
Pontas Tambunan
Margiyono
Darsasumarja
Parikesit Suprapto(2)
Rinaldi Firmansyah
Pamiyati Pamela
Johanna Waluyo
financial Relationship with
familial Relationship with
BOC
BOD
Controlling
BOC
BOD
Shareholder*
Controlling
Shareholder*
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
(1)The controlling shareholder in this instance is the Government of Indonesia represented by the Minister of SOEs as a primary shareholder
(2)no longer in position since April 22, 2016
Declaration of Independence
Telkom requires Independent Commissioners to sign a Statement of Independence for Independent Commissioner
when Independent Commissioner has served for more than two (2) periods. Until now, the drafting of this report,
Independent Commissioners of Telkom have served since 2015 so as not to serve more than two (2) periods.
73
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS DIRECTOR PROfILE
ALEX J. SINAGA (President Director)
Personal
Born
: Pematang Siantar, September 27, 1961.
Age
: 55 years.
Citizenship and Domicile
Alex J. Sinaga is 55 years old and was born in Siantar, September
27, 1961, he is an Indonesian citizen and lives in Jakarta. Other
than being the President Director of Telkom, Alex J. Sinaga is
also the President Commissioner of Telkomsel.
Education
Alex J. Sinaga education background, among others, is
a Bachelor degree in Electrical Engineering from Institut
Teknologi Bandung and a Master’s degree in Telematics from
the University of Surrey, Guidford-England.
Position and Appointment Basis
His position being a Director of Telkom is in accordance with
Extraordinary General Meeting of Shareholders (EGM) of
Telkom dated December 19, 2014. The decision effective from
December 19, 2014 to the present.
Previous work experience and its time period are presented as follows:
No. Position
1
2
3
4
5
6
7
8
President Director of Telkomsel
President Director of Multimedia Nusantara
Executive General Manager for Enterprise Service Division
Executive General Manager for Fixed Wireless Network Division
Senior Manager Business Performance Divisi Regional II Jakarta
General Manager Telkom Jakarta Barat
General Manager Telkom Surabaya Barat
General Manager Telkom Malang
Period
2012 – 2014
2007 – 2012
2005 – 2007
2002 – 2005
2002
2000 – 2002
1998 – 1999
1997 – 1998
74
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS HARRY M. ZEN (Director of Finance)
Personal
Born
: Tanjung Pinang, January 9, 1969.
Age
: 48 years.
Citizenship and Domicile
Harry M Zen is 48 years old and was born in Tanjung Pinang,
on January 9, 1969, he is an Indonesian citizen and lives in
Jakarta. Other than being Finance Director, Harry M Zen is
also the President Commissioner of GSD and a Commissioner
of Telkomsel.
Education
Harry M Zen’s educational background is a Bachelor’s Degree
from University of Indonesia Faculty of Metallurgy and an
MBA degree in Corporate Finance Institutions & Market from
the State University of New York, Buffalo.
Position and Appointment Basis
His position being a Finance Director of Telkom is in
accordance with Annual General Meeting of Shareholders
(AGM) of Telkom on April 22, 2016. The decision effective
from April 22, 2016 to the present.
Previous work experience and its time period are presented as follows:
No. Position
1
2
3
4
5
President Director PT Credit Suisse Securities Indonesia
Director Barclays Capital
Co-Head Investment Banking, PT Bahana Securities
Assistant Vice President Citibank - Global Corporate Banking
Official Assistant Citibank - Global Consumer Banking
Period
2008 - 2015
2007 - 2008
2001 - 2008
1996 - 2001
1993 - 1994
75
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS INDRA UTOYO (Director of Digital & Strategic Portfolio)
Personal
Born
: Bandung, February 17, 1962.
Age
: 55 years.
Citizenship and Domicile
Indra Utoyo is 55 years old and was born in Bandung, on
February 17, 1962, he is an Indonesian citizen and lives in
Bandung. Other than being Digital & Strategic Portfolio
Director, Indra Utoyo is also the President Commissioner of
MDI and a Commissioner of Telkom Metra.
Education
Indra Utoyo’s educational background is a Bachelor’s Degree
from Institut Teknologi Bandung with major in Electro
Telecommunication Engineering. He has an MBA degree in
Communication and Signal Processing from Imperial College
of Science, Technology and Medicine, University of London,
England.
Position and Appointment Basis
His position being an Digital & Strategic Portfolio Director of
Telkom is in accordance with Extraordinary General Meeting of
Shareholders (EGM) of Telkom on May 11, 2012. The decision
effective from May 11, 2012 to the present.
Previous work experience and its time period are presented as follows:
No. Position
1
2
Director of IT Solution & Supply, Telkom
Senior General Manager Information System Center Telkom
Period
2007 - 2012
2005 - 2007
76
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS HONESTI BASYIR (Director of Wholesale And International Service And Director of
Enterprise & Business Service)
Personal
Born
: Padang, June 24, 1968.
Age
: 48 years.
Citizenship and Domicile
Honesti Basyir is 48 years old and was born in Padang,
on June 24, 1968, he is an Indonesian citizen and lives in
Bandung. Other than being Wholesale and International
Service Director, Honesti Basyir also have dual position as
Director for Enterprise & Business Service (since September
13, 2016), the President Commissioner of Telin, and the
President Commissioner of Telkom Metra.
Education
Honesti Basyir’s educational background is a Bachelor’s
Degree from Institut Teknologi Bandung with major in
Industrial Engineering. He has a Master’s degree in Corporate
Finance from Sekolah Tinggi Manajemen Bandung.
Position and Appointment Basis
Previously, he served as Finance Director, accordance
to AGSM Telkom in May 11, 2012 and as Wholesale and
International Service Director of Telkom is in accordance
with Extraordinary General Meeting of Shareholders (EGM)
of Telkom on December 19, 2014. The decision effective from
December 19, 2014 to the present.
Previous work experience and its time period are presented as follows:
No. Position
Director of Finance, Telkom
Period
2012 - 2014
1
2
3
4
5
6
Vice President Strategic Business Development, Directorate IT Solution and Strategic
Portfolio Telkom
2012
Vice President Strategic Business Development, Strategic Investment & Corporate
Planning Telkom
2010 - 2012
Project Controller-1, Project Management Office Telkom
Assistant Vice President, Business & Finance Analysis Telkom
Project Management Consultant, Garuda Maintenance Facility
2009 - 2010
2006 - 2009
1992 - 1993
77
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS HERDY ROSADI HARMAN (Director of Human Capital Management)
Personal
Born
: Bandung, June 28, 1963.
Age
: 53 years.
Citizenship and Domicile
Herdy Rosadi Harman is 53 years old and was born in Bandung,
on June 28, 1963, he is an Indonesian citizen and lives in
Bandung. Other than being a Human Capital Management
Director, He also has a dual position as Commissioner of GSD
and a Commissioner of Infomedia.
Education
Herdy Rosadi Harman’s educational background is a Bachelor’s
Degree from Universitas Padjajaran Bandung majoring in Law.
He has a MBA degree from the Asian Institute Management
Philippines-Institute Management Telkom University and
Master of Law (LLM) from American University, Washington
DC, the United States.
Position and Appointment Basis
His position as the Human Capital Management Director of
Telkom is in accordance with Extraordinary General Meeting
of Shareholders (EGM) of Telkom on December 19, 2014. The
decision effective from December 19, 2014 to the present.
Previous work experience and its time period are presented as follows:
No. Position
1
2
3
4
Director of Human Capital Management, Telkomsel
VP Regulatory Management, Telkom
VP Legal & Compliance, Telkom
General Manager Management Support, Telkom
Period
2012 – 2014
2007 – 2012
2006 – 2007
2004 – 2006
78
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS ABDUS SOMAD ARIEf (Director of Network, IT & Solution)
Personal
Born
: Sidoarjo, September 25, 1963.
Age
: 53 years.
Citizenship and Domicile
Abdus Somad Arief is 53 years old and was born in Sidoarjo,
on September 25, 1963, he is an Indonesian citizen and lives in
Jakarta. Other than being the Network, IT & Solution Director,
he also serves as the President Commissioner of Telkom Infra
and a Commissioner of Teltranet.
Education
Abdus Somad Arief’s educational background is a Bachelor’s
Degree from Institut Teknologi Bandung majoring in Electro
Engineering. He has a Master’s degree in Information and
Technology Systems from Institut Teknologi Bandung.
Position and Appointment Basis
His position as the Network, IT, & Solution Director of Telkom
is in accordance with Extraordinary General Meeting of
Shareholders (EGM) of Telkom on December 19, 2014. The
decision effective from December 19, 2014 to the present.
Previous work experience and its time period are presented as follows:
No. Position
1
2
3
4
5
6
Director of Network, Telkomsel
Executive General Manager Enterprise Service Division, Telkom
Vice President of Business Development, Telkom
Deputy Executive General Manager Divisi Enterprise Service, Telkom
President Commissioner, PT Pramindo Ikat Nusantara
Commissioner, PT Infomedia Nusantara
Period
2012 – 2014
2009 – 2012
2008 – 2009
2007 – 2008
2011 – 2012
2010 – 2011
79
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS DIAN RACHMAwAN (Director of Consumer Service)
Personal
Born
: Surabaya, May 14, 1964.
Age
: 52 years.
Citizenship and Domicile
Dian Rachmawan is 52 years old and was born in Surabaya, on
May 14, 1964, he is an Indonesian citizen and lives in Bogor.
Other than being a Consumer Service Director, He also have
a dual position as President Commissioner of Telkom Akses.
Education
Dian Rachmawan’s educational background is a Bachelor’s
Degree from Institut Teknologi Sepuluh November majoring
in Electro and Telecommunication Engineering. He has a
Master’s degree in Communication and Real Time System,
Telecommunication Engineering and from University of
Bradford, England.
Position and Appointment Basis
His position as the Consumer Service Director of Telkom
is in accordance with Extraordinary General Meeting of
Shareholders (EGM) of Telkom on December 19, 2014. The
decision effective from December 19, 2014 to the present.
Previous work experience and its time period are presented as follows:
No. Position
CEO, PT Telekomunikasi Indonesia International (Hongkong) Limited
Director of Network Operation & Engineering, PT Telkom Indonesia International
2007 – 2011
Executive General Manager Divisi Fixed Wireless Network, Telkom
General Manager, Telkom Jakarta Selatan
2005 – 2007
2004 – 2005
General Manager for Interconnection & Partnership for Regional Division II Jakarta
2001 – 2004
Period
2011 – 2014
1
2
3
4
5
80
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Previous Board of Director Profile
MUHAMMAD AwALUDDIN (Director of Enterprise and Business Service)
Period May 2012 - Sept 2016
Personal
Born
: Jakarta, January 15, 1968.
Age
: 49 years.
Citizenship and Domicile
Muhammad Awaluddin is 49 years old and was born in
Jakarta, on January 15, 1968, he is an Indonesian citizen and
lives in Jakarta.
Education
Muhammad Awaluddin’s educational background
is a
Bachelor’s Degree of Electrical Engineering from Sriwijaya
University, Master of Business Administration from European
Antwerp Belgium and Doctoral Degree of Management
Science from Padjajaran University.
Position and Appointment Basis
His position as the Enterprise and Business Service Director of
Telkom is in accordance with Extraordinary General Meeting
of Shareholders (EGM) of Telkom on May 11, 2012. The decision
effective from May 11, 2012 to September 13, 2016.
Previous work experience and its time period are presented as follows:
No. Position
1
2
3
4
President Director, PT Infomedia Nusantara
EGM Access Network Infrastructure
EGM DIVRE 1 Medan
VP Public & Marketing Communication
Period
2010 – 2012
2010
2007 – 2010
2005 - 2007
81
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS HERI SUNARYADI (Director of Finance)
Period December 2014 - April 2016
Personal
Born
: Jember, June 26, 1965.
Age
: 51 years.
Citizenship and Domicile
Heri Sunaryadi is 51 years old and was born in Jember, on June
26, 1965, he is an Indonesian citizen and lives in Jakarta.
Education
Heri Sunaryadi’s educational background is a Bachelor’s
Degree Faculty of Agricultural Technology from Institut
Pertanian Bogor in 1987.
Position and Appointment Basis
His appointment as the Finance Director of Telkom is
in accordance with Extraordinary General Meeting of
Shareholders (EGM) of Telkom on December 19, 2014. The
decision effective from December 19, 2014 to April 22, 2016.
Previous work experience and its time period are presented as follows:
No.
Position
1
2
3
President Director, PT Kustodian Sentral Efek Indonesia
President Director, PT Bahana Pembinaan Usaha Indonesia
President Director, Bahana Securities
Period
2013 – 2014
2009 – 2013
2007 – 2009
82
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Education and/or Training, Seminar, Congress
To increase the competencies of the main leaders of Telkom, each member of the Board of Directors has the opportunity
to participate in education and training throughout the financial year 2016.
No. Education/Training, Seminar, Congress
Director Name
Time
Place
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Participant at Mobile World Congress
Alex J. Sinaga
Februari 22 - 25, 2016
Barcelona
Speaker at Tiered Leadership
Development Program Indonesia
Financial Service Authority (OJK)
Alex J. Sinaga
May 19, 2016
Jakarta
Focus Group Discussion Synergy BUMN
Alex J. Sinaga
May 28 - 29, 2016
Assessment Indonesia Human Capital
Study 2016
Alex J. Sinaga
September 6, 2016
Keynote Speaker on IBD Expo
Alex J. Sinaga
September 9, 2016
Participating in CEO Forum
Alex J. Sinaga
November 24, 2016
Pacific Telecommunication Council
Honesti Basyir
Januari 17 – 20, 2016
Parapat
Jakarta
Jakarta
Jakarta
Hawaii
Speaker at Stadium General in
Telkom Univesity about International
Expansion
Honesti Basyir
April 1, 2016
Bandung
International Telecoms Week
Honesti Basyir
May 6 – 12, 2016
Honesti Basyir
November 3, 2016
Chicago
Jakarta
State Owned Enterprise Forum 2
Years Realizing Nawacita
Human Resource Strategy in
Transforming Organisations, London
Business School
Competitive Strategy: Developing
your long game
Herdy Rosadi Harman
2016
London
Abdus Somad Arief
2016
Fontainebleau, France
Speaker at MBA ITB
Dian Rachmawan
September 9, 2016
National Anti Fraud Conference
Harry M. Zen
October 26, 2016
Leading With Big Data Analytics
Indra Utoyo
2016
Bandung
Semarang
Singapore
Directors Affiliations and Relationships
In accordance with the principle of transparency to implement GCG, Telkom declares the affiliation with the other Board
members, members of the Board of Commissioners and major shareholders, including the name of affiliated parties.
Directors (BOD)
Alex J. Sinaga
Heri Sunaryadi(2)
Harry M. Zen(3)
Indra Utoyo
Dian Rachmawan
Muhammad Awaluddin(4)
Abdus Somad Arief
Herdy Rosadi Harman
Honesti Basyir
financial Relationship with
financial Relationship with
BOC
BOD
Controlling
Shareholder(1)
BOC
BOD
Controlling
Shareholder(1)
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
(1) Controlling Shareholder in this matter is the Indonesian government represented by the Ministry of State Owned Enterprises as the primary shareholder
(2) no longer in position since April 22, 2016
(3) in position since April 22, 2016
(4) no longer in position since September 13, 2016
83
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS PREfACE
PREfACE
fINANCIAL AND
PERfORMANCE HIGHLIGHT
MANAGEMENT REPORT
GENERAL INfORMATION
Of TELKOM INDONESIA
ALEX J SINAGA . CEO TELKOMGROUP
84
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS INTEGRATED HUMAN
CAPITAL MANAGEMENT
SYSTEM
Integrated and digital-app-based human capital management
Through a web-in service, employees can submit questions, requests, and complaints
concerning human capital management to the help desk solver team anytime anywhere. This
application also features a ticketing system to monitor the progress handling complaints.
A forum to accommodate ideas and share creative aspirations as well as feedbacks to the
company. Each month the best aspirations are selected for submission to get response from
the HCM Director and to be published in the company’s Internal Portal.
Ingenium is a tool for employees to make their own career plans. This application also
helps the managers find the best talents for a position based on competency, interest, and
sociometry.
This application contains summarized descriptions of a position in regards to responsibilities,
authorities, performance indicators and competencies required to carry out the job.
Employees can easily check a summary of their remunerations, including their take home
pays, bonuses, and incentives through this application anywhere anytime.
An application that employees use to check their leave quotas, leave applications (annual,
long service, or trips) and to track the process of the approval.
An application to facilitate employees to learn independently online. The materials are
presented interactively through multimedia contents designed to optimize the trainees’
comprehension. Employees may select the time and materials of the training they wish to
join.
85
ALEX J SINAGA . CEO TELKOMGROUP
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS TELKOM INDONESIA EMPLOYEES
Telkom envisions to be the King of Digital in The Region. Digital technology drives total changes and will focus on
human resources. Digitalization creates the perfect platform for innovation. Among the key drivers that will enable
Telkom to achieve its vision are people and culture. “Telkom Group CEO believes that employees are more important
than technology”. A total of 23,876 employees are our most valuable asset in our preparation to achieve our goal to
become a world-class digital company. This is also supported by a network of representative offices in 11 countries, and
fiber optic broadband networks that cross over the Pacific Ocean. Building digital skills is crucial for our employees
who want to succeed in the future. In addition, we provide a work environment tailored to the individual conditions and
technology that allows us to connect with each other uninterruptedly.
HR Profile
Based on Education Level
Age Range
12,000
10,000
8,000
6,000
4,000
2,000
0
Pre University
18.94%
Diploma
18.76%
Bachelor
51.62%
Post Graduate
10.68%
<30 years
30-45 years
>45 years
Based on Gender
23,876 Telkom Group Employees
77 %
63%
37%
Male
23 %
female
14,933
Telkom Employees
8,943
Subsidiary Employees
86
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Employees and their work culture are Telkom’s most
The following tables displays the distribution of education
valuable asset in achieving its vision to be the King of
level of Telkom business group employees.
Digital. By the end of 2016, Telkom business group has
23,876 employees, which consists of 14,933 employees in
the parent company and 8,943 subsidiaries’ employees.
Table of Telkom and Subsidiaries Employees
Based on Education in 2016
The number of employees in the parent company in 2016
2016
is 7.23% lower than the previous year in accordance to
Education
the ongoing early retirement program to revitalize and
increase the human capital efficiency. Telkom also carried
out the program in 2014 and 2015, and it reduced the
number of employees at Telkom parent company by
7.34%, from 17,279 to 16,097.
Telkom Subsidiaries
Telkom
Group
%
Preuniversity
3,834
Diploma
Undergrad
Graduate
3,217
5,987
1,895
689
1,261
4,523
18.94
4,478
18.76
6,337
12,324
51.62
656
2,551
10.68
In general, the number of employees also decreased in
Telkom subsidiaries, whose employees in 2016 is 3.67%
lower than the previous year.
Table of Telkom Business Groups Employees
Based on Education in 2014-2016
The number of employees of Telkom Group is presented
on table below.
Education
2016
2015
2014
Total
%
Total
%
Total
%
Preuniversity 3,834 25.67 4,541 28.2 5,289
30.6
Diploma
3,217 21.54 3,655 22.7 4,093
23.7
Undergrad
5,987 40.09 6,082 37.8 6,159
35.6
Graduate
1,895 12.69
1,819
11.3
1,738
10.1
In terms of age, 49.63% or 11,850 employees in Telkom
business group are above 45 years old. It is the same in
Table of Number of Telkom and Subsidiaries
Employees in 2014-2016
No.
Telkom Group
Employees
2016
2015
2014
Telkom Employees
14,933
16,097
17,279
1
2
Telkom Subsidiary
Employees
Total Telkom Group
Employees
8,943
8,688
8,005
the parent company, where the majority or 72.40% of its
employees are over 45 years or roughly 10,812 employees.
23,876 24,785 25,284
Data on the number of employees by age is presented as
follows.
Number of Employees by Education Level
and Age Distribution of Employees
Based on the educational level distribution, 40.09%
or 5,987 people employed in Telkom business group in
2016 have undergraduate degrees. The figure is higher
compared to 37.78% in 2015.
Age
Table of Telkom Business Groups and
Subsidiaries Employees based on Age in
2016
A majority or 70.86% subsidiaries employees in general,
or 6,337 people in 2016, have undergraduate degrees.
(Years Old)
Telkom Subsidiaries
2016
Telkom
Group
%
Below 30
1,155
Between 30-45
2,966
2,357
5,548
3,512
14.71
8,514 35.66
Above 45
10,812
1,038
11,850 49.63
87
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Below 30
Between
30-45
Table of Telkom Business Groups and
Subsidiaries Employees based on Age in
2014-2016
Age
2016
2015
2014
(Years Old)
Total
%
Total
%
Total
%
Total Telkom and Subsidiaries Employees
Based on Position in 2014-2016
Level
Position
Senior
2016
2015
2014
Total
%
Total
%
Total
%
207
1.39
187
1.2
151 0.9
1,155
7.73
893 5.5
680 3.9
Management
2,966 19.86
3,386 21.1
3,784 21.9
Middle
Management
3,856 25.82
3,281 20.4 2,939 17.0
Above 45
10,812 72.40
11,818 73.4
12,815 74.2
Supervisor
8,917 59.71
9,913 61.6 10,233 59.2
Number of Employees by Position and
Status of Personnel
Telkom in general has various levels of position, namely
Others
1,953 13.08
2,716 16.9 3,956 22.9
Further, from the data on gender-based employees
composition, it can be seen that during 2016, the total
senior management, middle management, supervisors,
male employees was recorded to have higher than the
and other levels of position.
total female employees, with 11,803 male employees and
3,130 female employees as illustrated in the following
In 2016, 59.71% or 8,917 employees working as supervisor
table:
made up the largest composition in the Telkom business
group employees. Similarly in the subsidiary, supervisor
made up the largest concentration of employees at
Total Employees of Telkom and Subsidiary
In 2016
Entities Based on Gender
44.38% or 3,969 people in 2016.
Total Telkom and Subsidiaries Employees
Based on Position in 2016
Gender
Classification
2016
Telkom
Subsidiary
Entities
Telkom Group
%
Level
Position
2016
Telkom Subsidiaries
Telkom
Group
%
Senior
207
404
611
2,56
Management
Middle
3,856
1,434
5,290
22.16
Management
Supervisor
Others
Total
8,917
1,953
3,127
12,044
50.44
3,969
5,922
24.80
14,933
8,943
23,876 100.00
Male
Female
11,803
3,130
6,508
2,435
18,311 76.69
5,565 23.31
Total Employees of Telkom Based on
Gender In 2014-2016
Gender
2016
2015
2014
Classification
Total
%
Total
%
Total
%
Male
Female
11,803 79.04
12,935 80.4 14,091 81.5
3,130 20,96
3,162 19.6 3,188 18.5
88
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Equal Opportunities in Competence Development
The purpose of competence development is Telkom’s human resources to be more innovative and creative to advance
the company. All employees have an equal opportunity to participate in the company’s competency development
program. Telkom has carried out the following competency improvement program in 2015 and 2016.
Type of Competency Development Program
Telkom
Subsidiaries
Telkom Group
%
2016
Training
Certification
Educational Scholarship
Total
Type of Competency Development Program
Training
Certification
Educational Scholarship
Total
14,722
266
117
15,105
11,659
20
1
11,680
2015
26,381
98.49
286
118
26,785
1.07
0.44
100
Telkom
Subsidiaries
Telkom Group
%
11,699
639
190
12,468
5,725
-
11
5,736
17,424
95.40
639
201
18,264
3.50
1.10
100
In 2016, Telkom spent Rp95.13 billion for competence development, an increase of Rp16.3 billion or 20.68% compared
to 2015, excluding educational scholarship.
SHAREHOLDER COMPOSITION
The authorized capital of the Company consists of 1 Series A Dwiwarna shares, and 399,999,999,999 Series B shares
(common stock). The authorized subscribed and paid-up capital is 100,799,996,400, consisting of one share of Series
A Dwiwarna share and 100,799,996,399 Series B shares. A single shares of the Series A Dwiwarna Share is owned by
the Government of the Republic of Indonesia (the “Government”).
Composition of Shareholders Telkom On December 31, 2016
Indonesian Government
Public
Sub Total Capital (placed and fully deposited)
Treasury Shares (shares that have not been
repurchased)
Total
Series A
Dwiwarna
Series B (Ordinary
Stock)
51,602,353,559
47,459,863,040
99,062,216,599
%
52.09
47.91
100.0
1,737,779,800
-
100,799,996,399
100.0
1
1
1
89
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Telkom’s shareholder composition per December 31, 2016 in details are as follows:
1. Shareholders with more than 5% ownership (Major Shareholder/Controller)
Type of Share
Individual or Group Identity
Total Shares
Percentage Owned
Seri A
Seri B
Government
Government
1
51,602,353,559
-
52.09
2. Ownership of Shares by Directors and Commissioners
On December 31, 2016 there was no Commissioner or Director of the Company which has more than 1.0% of Company shares.
BOD or BOC Commissioner
Total Shares
Percentage Owned
Commissioners
Directors
Total
Hendri Saparini
Hadiyanto
Dolfie Othniel
Fredric Palit
Alex J. Sinaga
Indra Utoyo
Honesti Basyir
Dian Rachmawan
Abdus Somad Arief
Herdy Rosadi
Harman
414,157
875,297
372,741
920,349
1,972,644
1,945,644
888,854
828,314
828,012
9,046,012
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
3. Shareholders with Foreign Ownership or Less Than 5%
Telkom Shareholders with Institution or Individual Ownership Less Than 5%, on December 31, 2016.
Ordinary Stocks Owned Ownership Percentage
of Outstanding Common
Shares (%)
39,692,722,020
15,978,300
1,527,847,372
2,335,982,606
2,608,784,450
646,453,350
78,777,750
553,317,192
47,459,863,040
40.07
0.01
1.54
2.36
2.64
0.65
0.08
0.56
47.91
Limited Liability
Mutual funds
Insurance Company
Pension funds
Others
Group
Foreign
Local
Institutions
Individual
Businesses
Individuals
Total
90
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4. Percentage of Shares Owned inside and outside Indonesia
On December 31, 2016, a total of 47,683 shareholders, including the Government, registered as holders of ordinary shares
of the Company, including 39,185,506,554 ordinary shares owned by 2,407 shareholders outside Indonesia. At the same
date, there were 92 shareholders who own 66,048,569 ADS (1 ADS is equivalent to 100 ordinary shares).
5. List of 20 Largest Public Shareholders
Here is a list of the 20 largest public shareholders on December 31, 2016.
BNY MELLON SA/NV RE BNYMLB RE EMPLOYEES PROVIDEN
GIC PRIVATE LIMITED S/A GOVERNMENT OF SINGAPORE
BPJS KETENAGAKERJAAN-JHT
JPMCB NA RE-SAUDI ARABIAN MONETARY AGENC
BBH BOSTON S/A VANGARD EMERGING MARKET
PT PRUDENTIAL LIFE ASSURANCE
CITIBANK NEW YORK S/A GOVERNMENT OF NORWAY
JPMCB NA RE-VANGUARD TOTAL INTERNATIONAL
JPMCB NA RE-VIRTUS EMERGING MARKETS
THE NORTHERN TRUST CO S/A SAUDI ARABIAN
JPMCB NA AIF CLT RE-STICHTING DEPOSITARY
HSBC BANK PLC S/A SAUDI ARABIAN MONETARY
BBH BOSTON S/A MATTHEWS PACIFIC TIGER FU
RBC S/A VONTOBEL FUND - EMERGING MARKETS
SSB 1BA9 ACF MSCI EQUITY INDEX FUND B-IN
REKSA DANA SCHRODER DANA PRESTASI PLUS-9
SSB OBIH S/A ISHARES MSCI EMERGING MARKE
GIC S/A MONETARY AUTHORITY OF SINGAPORE
JPMBL SA UCITS CLT RE-JPMORGAN FUNDS
PT AIA FINL - UL EQUITY
1.09
1.04
1.02
0.88
0.77
0.66
0.63
0.58
0.58
0.44
0.42
0.42
0.42
0.37
0.34
0.34
0.33
0.26
0.26
0.25
91
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JOINT VENTURES
Government
52.09 %
SMI
92
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Public
47.91 %
Metra TV
Notes:
Direct subsidiaries (consolidated)
Indirect subsidiaries (consolidated)
Unconsolidated
93
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indirectly as follows:
Subsidiaries with Direct Ownership
Company
Share
Ownership
Business field
Operational
Status
Total Asset
Before
Elimination
(Rp billion
Address
PT Telekomunikasi
Selular (“Telkomsel”),
Jakarta, Indonesia
65%
Telecommunication
Operating
89,781 Telkomsel Smart Office
(TSO) Kompleks Telkom
Landmark Tower
Jl. Jend. Gatot Subroto Kav.
52 Jakarta 12710, Indonesia
PT Dayamitra
Telekomunikasi
(“Mitratel”),
Jakarta, Indonesia
PT Multimedia
Nusantara
(“Telkom Metra”),
Jakarta, Indonesia
PT Telekomunikasi
Indonesia International
(“Telin” or “TII”),
Jakarta, Indonesia
100%
Telecommunication
Operating
10,689 Gedung Graha Pratama
100%
Telecommunication
network services
and multimedia
5th Floor, Jl. MT. Haryono
Kavling 15, Jakarta 12810,
Indonesia
Operating
10,020 The East Tower 33rd &
37th Floor, Jl. DR. Ide Anak
Agung Gde Agung Kav.
E3.2 No.1
Kuningan Timur, Setiabudi
Jakarta Selatan 12950,
Indonesia
100%
Telecommunication
Operating
7,147 Menara Jamsostek, Menara
Utara, 24th Floor, Jl. Jendral
Gatot Subroto Kav. 38
Jakarta Selatan 12710,
Indonesia
PT Telkom Akses
(“Telkom Akses”),
Jakarta, Indonesia
100%
Construction,
services and
trade in
telecommunications
Operating
5,098 Gedung Telkom Jakarta
Barat Jl. S. Parman Kav.
8 Jakarta Barat 11440,
Indonesia
PT Graha Sarana Duta
(“GSD”),
Jakarta, Indonesia
99.99%
Office leasing
and building
management
and maintenance
services, civil
consultant and
developer
Operating
4,333 Menara Multimedia Jl.
Kebon Sirih No.10, Jakarta
Pusat 10110, Indonesia
100%
Services and
telecommunications
development
Operating
3,146 Plaza Kuningan Menara
Utara 3rd Floor
Jl. Rasuna Said Kav C11-C14
Jakarta Selatan, Indonesia
100%
Construction,
services and trade in
telecommunications
Operating
1,015 Gedung Mugi Griya, 5th
Floor, Jl. MT Haryono Kav.
10 Jakarta 12810 Indonesia
PT PINS Indonesia
(“PINS”) dahulu
Pramindo Ikat
Nusantara
Jakarta, Indonesia
PT Infrastruktur
Telekomunikasi
Indonesia (“Telkom
Infratel”), Jakarta,
Indonesia
94
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Share
Ownership
Business field
Operational
Status
Total Asset
Before
Elimination
(Rp billion
Address
PT Patra
Telekomunikasi
Indonesia
(“Patrakom”), Jakarta,
Indonesia
PT Metranet
(“Metranet”), Jakarta,
Indonesia
100%
Telecommunications
providing satellite
communications
systems and related
facilities.
100%
Multimedia portal
services
Operating
472 Jl. Pringgondani II, No.33,
Alternatif Cibubur, Depok
16954, Indonesia
Operating
370 Mulia Business Park,
Building J, Jl. Letjen MT
Haryono Kav. C58 – 60
Pancoran, Jakarta 12780,
Indonesia
15 Menara Dea, Tower 1, 8th
Floor, Jl. Mega Kuningan
Barat IX Kav. E.4.3 No.1
Jakarta 12950
5 -
PT Jalin Pembayaran
Nusantara (“Jalin”),
Jakarta, Indonesia
PT Napsindo Primatel
Internasional
(“Napsindo”),
Jakarta, Indonesia
100%
60%
Payment Services -
principal activities,
switching activities,
clearing and
settlement
Telecommunications
providing the
Network Access
Point (NAP), Voice
Over Data (VOD),
and other related
services.
Operating
Stopped
Operating
in January
13, 2006
Subsidiaries with Indirect Ownership
Company
Share
Ownership
Business field
Operational Status
Total Asset
Before
Elimination
(Rp billion)
Description
100%
PT Sigma Cipta
Caraka (“Sigma”),
Tangerang,
Indonesia
Information
technology
services -
implementation
and system
integration,
outsourcing, and
maintenance and
software licenses
Operating
4,289
100%
Telecommunication
Operating
2,566
Telekomunikasi
Indonesia
International
Pte. Ltd. (“Telin
Singapore”),
Singapura
Graha Telkom Sigma
Jl. Kapten Subijanto
DJ, Bumi Serpong
Damai, Tangerang
Selatan 15321
Maritime Square,
#09-63 Harbour
Front Center,
Singapore - 099253
95
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Share
Ownership
Business field
Operational Status
Total Asset
Before
Elimination
(Rp billion)
100%
PT Infomedia
Nusantara
(“Infomedia”),
Jakarta, Indonesia
55%
PT Telkom
Landmark Tower
(“TLT”), Jakarta,
Indonesia
Data and
information
services - providing
information
services of
telecommunication
and other
information
services in the
form of print and
electronic media,
as well as call
center services
Property
development and
management
services
Operating
1,860
Operating
1,683
Telekomunikasi
Indonesia
International (TL)
S.A. (“Telin Timor
Leste”), Dili, Timor
Leste
PT Metra Digital
Media (“MD
Media”), Jakarta,
Indonesia
100%
Telecommunication
Operating
755
99.99%
Information
Services in a
special Directory
Form
Operating
684
60%
PT Finnet
Indonesia
(“Finnet”), Jakarta,
Indonesia
Information
technology
services
Operating
629
Telekomunikasi
Indonesia
International
Ltd., (“Telin Hong
Kong”), Hong Kong
PT Metra Digital
Investama (“MDI”),
Jakarta, Indonesia
100%
Telecommunication
Operating
441
99.99%
Trade services,
information
technology and
multimedia,
entertainment and
investment
Operating
331
PT Metra Plasa
(“Metra Plasa”),
Jakarta, Indonesia
60%
Networking and
e-commerce
services
Operating
325
96
Description
PT Infomedia
Nusantara Head
Office Jl. RS.
Fatmawati 77-
81 Jakarta 12150,
Indonesia
Telkomsel Smart
Office (TSO) Jl.
Jend. Gatot Subroto
Kav. 52 Jakarta
12710, Indonesia
Timor Plaza
4th Floor, Rua
Presidente Nicolao
Lobato, Comoro, Dili,
Timor Leste
Wisma Aldiron
Dirgantara 2nd
Floor, Suite 202-209
& 231-237
Jl. Jend. Gatot
Subroto Kav.72
Pancoran Jakarta
Selatan, 12780,
Indonesia
Menara Bidakara
1 L, 12th Floor, Jl.
Jend. Gatot Subroto
Kav. 71-73, Jakarta
Selatan 12870,
Indonesia
Suite 905, 9/F,
Ocean Centre, 5
Canton Road, Tsim
Sha Tsui, Kowloon,
Hong Kong
The East Tower 36th
Floor. Jl. Dr. Ide
Anak Agung Gde
Agung Kav. E.3.2
No.1, Kuningan Timur
Setiabudi, Jakarta
Selatan 12950,
Indonesia
Mulia Business Park,
Building J, Jl. Letjen
MT Haryono Kav.
58 – 60 Pancoran,
Jakarta 12780,
Indonesia
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Company
Share
Ownership
Business field
Operational Status
Total Asset
Before
Elimination
(Rp billion)
Description
99.99%
Services and Trade
Operating
227
PT Nusantara
Sukses Investasi
(“NSI”), Jakarta,
Indonesia
100%
PT Administrasi
Medika (“Ad
Medika”), Jakarta,
Indonesia
PT Melon Indonesia
(“MelOn”), Jakarta,
Indonesia
100%
Administrative
services and health
insurance
Operating
204
Content digital
services
Operating
178
PT Graha Yasa
Selaras (“GYS”),
Jakarta, Indonesia
Telekomunikasi
Indonesia
International Pty
Ltd., (“Telkom
Australia”),
Australia
PT Sarana
Usaha Sejahtera
Insanpalapa
(”TelkoMedika”)
Jakarta, Indonesia
PT Satelit
Multimedia
Indonesia (“SMI”),
Jakarta, Indonesia
Telekomunikasi
Indonesia
International
(“Telkom USA”)
Inc., Los Angeles,
USA
PT Metra TV
(“Metra TV”),
Jakarta, Indonesia
51%
Tourism services
Operating
100%
Telecommunication
Operating
174
161
75%
Health Care
services,
pharmacies, and
laboratories, etc.
Operating
72
99.99%
Satellite services
Operating
18
100%
Telecommunication
Operating
99.83%
Subscription
broadcasting
services
Operating
9
-
Menara Multimedia,
Gedung Annex, 2nd
Floor Jl. Kebon Sirih
No.10-12, Jakarta
Pusat, Indonesia
STO Telkom Gambir
Gedung C, 3rd Floor,
Jl. Medan Merdeka
Selatan No.12,
Jakarta Pusat, 10110,
Indonesia
Gedung Telkom,
7th Floor, Jl.
Sisingamangaraja
Kav. 4-6 Kebayoran
Baru, Jakarta,
Indonesia
Jl. Cisanggarung
No.2, Bandung,
40115, Indonesia
Level 4 241
Commonwealth
Street Surry Hills,
NSW 2010
Jl. Cisanggarung
No.2, Citarum
Bandung 40115,
Indonesia
The East Tower 37th
Floor, Jl. Dr. Ide
Anak Agung Gde
Agung Kav. E.3.2
No.1, Kuningan Timur
Setiabudi, Jakarta
Selatan 12950,
Indonesia
800 Wilshire
Boulevard, Suite
620, Los Angeles
California 90017
The East Tower 37th
Floor. Jl. Dr. Ide
Anak Agung Gde
Agung Kav. E.3.2
No.1, Kuningan Timur
Setiabudi, Jakarta
Selatan 12950
97
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Company
Share
Ownership
Business field
Operational Status
99.99%
Building and hotel
management
services
Not Operating Yet
99.99%
Services and Trade Not Operating Yet
PT Nusantara
Sukses Sarana
(“NSS”), Jakarta,
Indonesia
PT Nusantara
Sukses Realti
(“NSR”), Jakarta,
Indonesia
Total Asset
Before
Elimination
(Rp billion)
Description
-
-
Menara Multimedia
Jl. Kebon Sirih No.10-
12, Jakarta Pusat,
Indonesia
Menara Multimedia
Jl. Kebon Sirih No.10-
12, Jakarta Pusat,
Indonesia
CHRONOLOGY Of SHARES LISTING
The company is listed in the Indonesian Stock Exchange (BEI) and New York Stock Exchange (NYSE) as of November
14, 1995, with shares code TLKM and TLK.
Date
Corporate Actions
Composition Of Shareholding
Government
Of Republic Of
Indonesia
Public
%
13/11/1995
First Public Pre-Offering
8,400,000,000
-
Sale Of Shares Held By Government
(933,334,000)
933,334,000
Telkom New Shares Issuance
-
933,333,000
-
-
-
Composition Of Shareholding
7,466,666,000
1,866,667,000
20.0
11/12/1996
Government Shares Block Sale
(388,000,000)
388,000,000
-
Composition Of Shareholding
7,078,666,000
2,254,667,000
24.2
15/05/1997
Government Distributes Incentive Shares To All
Public Shareholders
(2,670,300)
2,670,300
-
Composition Of Shareholding
7,075,995,700
2,257,337,300
24.2
7/5/1999
Government Shares Block Sale
(898,000,000)
898,000,000
-
Composition Of Shareholding
6,177,995,700
3,155,337,300
33.8
2/8/1999
Distribution Of Shares Bonus (Issuance) (Every
50 Shares Gets 4 Shares)
494,239,656
252,426,984
-
Composition Of Shareholding
6,672,235,356
3,407,764,284
33.8
7/12/2001
Government Shares Block Sale
(1,200,000,000)
1,200,000,000
-
Composition Of Shareholding
5,472,235,356
4,607,764,284
45.7
16/07/2002
Government Shares Block Sale
(312,000,000)
312,000,000
-
Composition Of Shareholding
5,160,235,356
4,919,764,284
48.8
1/10/2004
Denomination Of Shares Nominal Value With
Ratio Of 1:2
10,320,470,712
9,839,528,568
48.8
21/12/2005
Shares Repurchase Program (I)1
-
(211,290,500)
-
Composition Of Shareholding
10,320,470,712
9,628,238,068
48.3
98
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Date
Corporate Actions
Composition Of Shareholding
Government
Of Republic Of
Indonesia
Public
%
29/06/2007
Shares Repurchase Program (II)2
-
(215,000,000)
-
Composition Of Shareholding
10,320,470,712
9,413,238,068
47.7
20/06/2008
Shares Repurchase Program (III)3
-
(64,284,000)
-
Composition Of Shareholding
10,320,470,712
9,348,954,068
47.5
19/05/2011
Shares Repurchase Program (IV)4
-
(520,355,960)
-
Composition Of Shareholding
10,320,470,712
8,828,598,108
46.1
14/06/2013
Assignment Of Shares Repurchase Program III
To Employees Through Esop Program
-
59,811,400
0.3
Composition Of Shareholding
10,320,470,712
8,888,409,508
46.3
30/07/2013
Assignment Of Shares Repurchase Program I
Through Private Placement
-
211,290,500
-
Composition Of Shareholding
10,320,470,712
9,099,700,008
46.9
2/9/2013
Denomination Of Shares Nominal Value With
Ratio Of 1:5
13/06/2014
Assignment Of Shares Repurchase Program II
Through Private Placement
51,602,353,560
45,498,500,040
46.9
-
1,075,000,000
-
Composition Of Shareholding
51,602,353,560
46,573,500,040
47.4
21/12/2015
Assignment Of Remaining Shares Repurchase
Program III Through Private Placement
-
22,363,000
-
Composition Of Shareholding
51,602,353,560
46,595,863,040
47.5
29/06/2016
Assignment Of Remaining Shares Repurchase
Program IV Through Private Placement
-
864,000,000
-
Composition Of Shareholding
51,602,353,560
47,459,863,040
47.91
(1)
(2)
(3)
(4)
First shares repurchase program began on 21 December 2005 (simultaneously with the EGMS at the time such program is consented) and ended in
June 2007.
Second shares repurchase program began on 29 June 2007 (simultaneously with the EGMS at the time such program is consented) and ended in June
2008.
Third shares repurchase program began on 20 June 2008 (simultaneously with the EGMS at the time such program is consented) and ended in
December 2009.
Fourth shares repurchase program began on 19 May 2011 (simultaneously with the EGMS at the time such program is consented) and ended in
November 2012.
99
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CHRONOLOGY Of OTHER SECURITIES LISTING
Bond Program
Telkom issued bonds for the first time on July 16, 2002 valued at Rp1,000 billion in nominal price for a period of five
years. These bonds were traded in Surabaya Stock Exchange and yielded 17% annual fixed interest. On July 16, 2007,
Telkom has repaid its bond debts.
Telkom issued bonds in Rupiah for the second time on June 25, 2010, each valued at Rp1,005 billion for Series A with
a period of five years and Rp1,995 billion for Series B with a period of ten years. Such bond issuance had been listed in
IDX. Telkom has repaid Bond II Series A which was due on July 6, 2015.
The following is an overview of matured bonds of Telkom
Bond Name
Amount
(Rp
million)
Issuance
Maturity
Period
Interest
Date
Date
(year) I
Rate
Underwriter
Trustee
Date of
Repayment
Bond I Telkom Year
2002
1,000,000
July 16,
July 16,
2002
2007
5
17,00%
PT Danareksa
PT BNI Tbk,
July 16,
Sekuritas;
PT BRI Tbk
2007
Bond II Telkom
Year 2010 Series A
1,005,000
June 25,
2010
July 6, 2015
5
9,60%
Danareksa
PT CIMB
Sekuritas;
Niaga Tbk
July 6, 2015
PT Bahana
Sekuritas; PT
PT Mandiri
Sekuritas
Subsequently on June 16, 2015, Telkom issued Sustainable Bond I Phase I Year 2015 each in amount of Rp2,200 billion
for Series A with a period of 7 (seven) years, Rp2,100 billion for Series B with a period of 10 (ten) years, Rp1,200 billion
for Series C with a period of 15 (fifteen) years and Rp1,500 billion for Series D with a period of 30 (thirty) years. Such
bond issuance had been listed in BEI with PT Bahana Securities, PT Danareksa Sekuritas and PT Mandiri Sekuritas as
guarantors. Telkom once again appointed PT CIMB Niaga Tbk as the trustee.
Pemeringkat Efek Indonesia (Pefindo) on 10 March 2016 has rated Sustainable Bond I Telkom Phase I Year 2015 and
Bond II Series B Year 2010 for period March 8, 2016 until March 1, 2017 with idAAA (stable outlook) rating.
100
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
The following is an overview of un-matured bonds of Telkom
Bond Name
Amount
Issuance
Maturity
(Rp million)
Date
Date
Period
(year)
Interest
Rate
Underwriter
Trustee
Rating
Bond II Telkom Year
1,995,000
June
July 6,
10
10.20% PT Bahana
PT CIMB
idAAA
2010 Series B
25,
2020
2010
Sekuritas; PT
Niaga Tbk
Danareksa
Sekuritas;
PT Mandiri
Sekuritas
Sustainable Bond
2,200,000
June
June
7
9.93% PT Bahana
PT Bank
idAAA
I Telkom Year 2015
Series A
23,
23,
2015
2022
Sekuritas; PT
Permata
Tbk
Danareksa
Sekuritas;
PT Mandiri
Sekuritas;
PT Trimegah
Sekuritas
Sustainable Bond
2,100,000
June
June
10
10.25% PT Bahana
PT Bank
idAAA
I Telkom Year 2015
Series B
23,
23,
2015
2025
Sekuritas; PT
Permata
Tbk
Danareksa
Sekuritas;
PT Mandiri
Sekuritas;
PT Trimegah
Sekuritas
Sustainable Bond
1,200,000
June
June
15
10.60% PT Bahana
PT Bank
idAAA
I Telkom Year 2015
Series C
23,
23,
2015
2030
Sekuritas; PT
Permata
Tbk
Danareksa
Sekuritas;
PT Mandiri
Sekuritas;
PT Trimegah
Sekuritas
Sustainable Bond
1,500,000
June
June
30
11.00% PT Bahana
PT Bank
idAAA
I Telkom Year 2015
Series D
23,
23,
2015
2030
Sekuritas; PT
Permata
Tbk
Danareksa
Sekuritas;
PT Mandiri
Sekuritas;
PT Trimegah
Sekuritas
101
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Name And Address Of Institutions And/Or Capital Market
Supporting Professionals
Capital Market
Supporting
Professionals
Address
Service
fee
Assignment
Period
External Auditor
KAP Purwantono,
Sungkoro & Surja
(member firm of
Bursa Efek Jakarta
Building, Tower 2, 7th
Floor
Conducting
Rp36.5
Since 2012
Integrated Audit of
billion
PT Telkom Indonesia
Ernst & Young
Jl. Jend. Sudirman
(Persero) Tbk
Global Limited)
Kav. 52-53
(“Telkom”) and the
Jakarta - 12100
General Audit of
financial statements
of subsidiaries.
Publishing Consent
Letter.
Securities Admin
PT Datindo
Wisma Sudirman
Acting as a
Rp136
Since 1995
Bureau
Entrycom
Jl. Jend. Sudirman Kav
depository institution
million
34-35
(Custodian) of
Jakarta - 10220
ordinary Telkom
shares traded on the
Stock Exchange.
Trustee
PT Bank CIMB
Niaga Tbk.
Graha Niaga, 20th
Floor
Representing the
interests of Bond
Rp75
million
Since 2010
Jl. Jend. Sudirman
holders with the
Kav. 58
Company for Bond II
Jakarta – 12190
Telkom.
PT Bank Permata
Tbk.
WTC II Building 28th
Floor
Representing the
interests of Bond
Rp75
million
Since 2015
Jl. Jend Sudirman
holders with the
Kav.29-31
Company for Telkom
Jakarta 12920
Sustainable Bond
phase I.
102
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Capital Market
Supporting
Professionals
Address
Service
fee
Assignment
Period
Central Custodian PT Kustodian
Sentral Efek
Indonesia
Bursa Efek Jakarta
Building, Tower 1, 5th
Floor
- Providing a central
Rp10
Since 1995
depository and
million
settlement of stock
Jl. Jend. Sudirman
transactions on the
Kav 52-53
Stock Exchange.
Jakarta - 12190
- Storage services
and settlement
of securities
transactions,
distribution of
corporate action
results.
Ranking Agent
PT Pemeringkat
Efek Indonesia
Panin Tower Senayan
City, 17th Floor
Jl. Asia Afrika Lot. 19
Jakarta - 10270
Providing ranking on
Rp150
Since 2012
credit risk of Telkom
million
bond issuance.
ADS Custodian
The Bank of New
101 Barclay Street,
Acting as a
-1
Since 1995
Bank
York Mellon
Corporation
New York
depository institution
United States of
(Custodian) of ADS
America - 10286
shares traded on the
NYSE.
Official Service
Puglisi and
850 Library Ave #
Acting as an
US$1,000
Since 2012
Agent in the
Associates
204, Newark
authorized
United States
United States of
representative in
America - 19711
the US with regard
to securities in
accordance with the
law and regulations.
Law Consultant
Hadiputranto,
Gedung Bursa Efek
Acting as capital
Hadinoto &
Jakarta Tower 2,
market legal counsel
Partners
21st Floor Jl. Jend.
Rp119
million2
Since 1995
Sudirman Kav. 52-53
Jakarta - 12190
Notary
Notaris/PPAT
Jl. Suryo No.54
Acting as notary
Ashoya Ratam,
Kebayoran Baru
SH, MKn
Jakarta 12180
Rp25
million
Since 2012
1 BNY Mellon fee paid based on volume of transactions
2 Fee related to capital market activities
103
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 104
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS MANAGEMENT
DISCUSSION AND
ANALYSIS
107 Operational Overview by Segment
122
Comprehensive Financial Performance
140
Solvency
140
Receivables collectability
141
Capital Structure
142
Capital Expenditure
144 Material Commitment for Capital Expenditure
146 Material Information and Facts After Accountant
Reporting Date
146 Macroeconomy
148
Indonesia Telecommunication Industry
152
153
154
154
155
Business Prospect
Comparison Between Targets and Realization
Target for The Next Year
Dividend
Realization of Public Offering Fund
155 Material Information (Investments, divestments and
acquisitions)
156 Marketing Overview
158
161
Changes in Regulation
Changes in Accounting Policy
105
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Alex J Sinaga • CEO Telkom Group
106
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS OPERATIONAL OVERVIEW BY SEGMENT
Preface
Operational overview by segment in this report is presented according to industry type of Telkom Group. As of
December 31, 2016, Telkom Group has four operation segment, they are corporate segment, home segment, personal
segment, and other segment.
Table below compiles Telkom Group operation segment performance from 2014 until 2016.
Service by Customer
Segment
Corporate Segment
Satellite-transponder
Leased channel
IPLC
Data comm
Corporate internet
Unit
Growth
2016 - 2015 (%)
Years Ended December 31,
2016
2015
2014
MHz
Mbps
Mbps
Mbps
Mbps
46.3
6,801
4,648
3,560
47.1
146,831
99,827
88,257
82.0 15,348
8,435
8,639
(59.9)
764,397
1,907,012
930,327
1,092.2
1,750,617
146,843
93,368
Fixed Wireline (POTS)
(000) subscribers
3.5
1,601
1,547
1,465
Fixed Broadband
(000) subscribers
11.7
461
413
353
Home Segment
Fixed Wireline (POTS)
(000) subscribers
3.8 9,063
8,730
8,233
Fixed Broadband
(000) subscribers
8.3 3,867
3,570
3,047
Personal Segment
Cellular
(000) subscribers
13.9
173,920
152,641
140,586
Fixed wireless*
(000) subscribers
-
N/A
N/A
4,404
Mobile broadband
(000) subscribers
37.1
60,030
43,786
31,216
* Until the end of 2015, wireless subscribers get migration program to cellular subscribers.
Generally, operation segment of Telkom Group gives positive contribution to revenue/selling and segment result.
107
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Segment Performance Highlights
The following table provides operation segment summary of Telkom Group from 2014 until 2016.
Telkom’s Results of Operation By Segment
2016-2015
2016
2015
2014
(%)
(Rp billion)
(US$ million)
(Rp billion)
(Rp billion)
Growth
Years Ended December 31,
Corporate
Revenues
External Revenues
Inter-segment revenues
Total segment revenues
Segment expenses
Segment Results
Depreciation and amortization
14.7
127.7
60.5
70.8
19.6
53.2
24,177
32,675
56,852
1,795
2,425
4,220
21,072
14,347
35,419
18,763
10,652
29,415
(48,345)
(3,588)
(28,305)
(22,663)
8,507
631
7,114
6,752
(4,148)
(308)
(2,708)
(2,699)
Provision for impairment of receiveables
(84.5)
(87)
(6)
(560)
(184)
Home
Revenues
External Revenues
Inter-segment revenues
Total segment revenues
Segment expenses
Segment Results
Depreciation and amortization
Provision for impairment of receiveables
Personal
Revenues
External Revenues
Inter-segment revenues
Total segment revenues
Segment expenses
Segment Results
Depreciation and amortization
Impairment of fixed assets
Provision for impairment of receiveables
Other
Revenues
External Revenues
Inter-segment revenues
Total segment revenues
Segment expenses
Segment Results
Depreciation and amortization
Provision for impairment of receiveables
108
6.6
16.7
10.4
10.2
16.9
42.2
42.8
13.9
15.2
13.9
7,803
5,077
12,880
579
377
956
7,319
4,352
11,671
6,682
2,667
9,349
(12,576)
(933)
(11,411)
(8,960)
304
(1,711)
(424)
23
(127)
(31)
260
389
(1,203)
(1,495)
(297)
(467)
83,990
2,724
86,714
6,234
202
6,437
73,766
64,000
2,365
76,131
2,686
66,686
0
(51,303)
(3,808)
(51,303)
(44,786)
42.6
35,411
(13.6)
(12,549)
-
-
50.0
(222)
16.0
23.3
22.3
25.0
(3.2)
34.8
100.0
363
2,395
2,758
(2,549)
209
(124)
(10)
2,628
(931)
-
(16)
27
178
205
(189)
16
(9)
(0.1)
24,828
21,900
(14,531)
(12,071)
-
(148)
(805)
(133)
313
1,943
2,256
251
1,632
1,883
(2,040)
(1,718)
216
(92)
(5)
165
(61)
-
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
In line with telecommunication industry development particularly the cellular industry, in the financial year of 2016,
business revenue by Telkom Group’s operating segment was dominated by individual segment which reached the
revenue of Rp86,714 billion or 54.5% from total revenue (before elimination), followed by the revenue based on the
corporate segment in the amount of Rp56,852 billion or 35.7%, revenue based on the home segment in the amount of
Rp12,880 billion or 8.1% and other segment in the amount of Rp2,758 billion or 1.7%.
The following graphic presents the revenue/sales of Telkom Group per operating segment
Segment Revenues
4
1
7
6
8
,
1
3
1
,
6
7
2
5
8
6
5
,
0
8
8
2
1
,
9
1
4
5
3
,
8
5
7
2
,
1
7
6
,
1
1
6
5
2
2
,
100,000
80,000
60,000
40,000
20,000
0
6
8
6
6
6
,
5
1
4
9
2
,
9
4
3
9
,
3
8
8
,
1
2016
2015
Corporate
Home
Personal
2014
Others
Further, the largest business expense per operating segment was in personal segment in the amount of Rp51,303 billion
or 44.7%, from the total business expense of Telkom Group (before elimination). The second and third largest business
expense per operating segment are in the amount of Rp48,345 billion or 42.1% for corporate segment and Rp12,576
billion or 11.0% for home segment respectively. The smallest business expense per operating segment was recorded on
other segment with the amount of Rp2,549 billion or 2.2% of the total business expense in 2016.
Below is the business expense per Telkom Group’s operating segment from 2014-2016 presented in graphic form.
Segment Expenses
3
0
3
,
1
5
3
0
3
,
1
5
5
4
3
8
4
,
6
7
5
2
1
,
5
0
3
8
2
,
1
1
4
,
1
1
9
4
5
2
,
0
4
0
2
,
60,000
50,000
40,000
30,000
20,000
10,000
0
6
8
7
4
4
,
8
1
7
,
1
3
6
6
2
2
,
0
6
9
8
,
2016
2015
Corporate
Home
Personal
2014
Others
109
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
TELKOM GROUP
FINANCIAL AND
OPERATIONAL HIGHLIGHTS
MANAGEMENT REPORT
ABOUT TELKOM
INDONESIA
MANAGEMENT DISCUSSION
AND ANALYSIS
CORPORATE
GOVERNANCE
CORPORATE SOCIAL
RESPONSIBILITY
PARTNERSHIP AND COMMUNITY
APPENDICES
CONSOLIDATED
DEVELOPMENT PROGRAM
FINANCIAL STATEMENTS
With the revenue and business expense per operating segment as stated, the largest contribution of segment result
per Telkom Group’s segment in 2016 was recorded from personal segment which was in the amount of Rp35,411 billion
or 79.7%, from the total segment result (before elimination) in the amount of Rp44,431 billion. The second largest
contribution was from corporate segment in the amount of Rp8,507 billion or 19.1% and the third one is from home
segment in the amount of Rp304 billion or 0.7%. Other segment gave the smallest contribution in the amount of Rp209
billion or 0.5% from the total segment result in 2016.
Segment result per Telkom Group’s operating segment is presented below.
Segment Result
1
1
4
5
3
,
40.000
30.000
8
2
8
4
2
,
20.000
7
0
5
8
,
4
1
1
,
7
4
0
3
9
0
2
0
6
2
6
1
2
0
0
0
9
,
1
2
5
6
1
2
5
7
6
,
9
8
3
2016
2015
Corporate
Home
Personal
2014
Others
110
PT Telkom Indonesia (Persero) Tbk
CORPORATE SEGMENT
in 10 countries. Some of its services are facilities-based
operator, mobile virtual network operator (“MVNO”),
In corporate segment, we serve customers for business
wholesale voice, wholesale data, business process
portfolio through:
outsourcing, and point of presence maintenance.
1. Wholesale and International under CFU WIB
2. Network Infastructure under CFU WIB
Further, from the aspect of fiber optic cable network
3. Enterprise Digital under CFU Enterprise
infrastructures, Telkom Group has added fiber network in
the length of 24,770 km domestic and internationally in
Telkom Group’s business activities for portfolio of
2016. With such addition, total fiber optic cable backbone
wholesale telecommunication services, which consist
has reached the total of 106,000 km.
of interconnection and network services, hubbing, data
center and telecommunication solutions.
In 2016 Telkom Group has also strengthened other
infrastructures such as the development of Telkom-3S
Meanwhile our international business portfolio operated
satellite, tower business expansion, the addition of data
by our subsidiary Telin that already have point of presence
center capacity.
Telkom Group Infrastructure Table 2014 – 2016
Infrastructure Type
Unit
Value
Global and Domestic Submarine Cable
A. Global Submarine Cable
DMCS (Dumai-Malacca Cable System)
BSCS (Batam-Singapore Cable System)
SEA-ME-WE 5 (South East Asia-Middle East-Western Europe 5)
B. Domestic Submarine Cable
SMPCS (Sulawesi Maluku Papua Cable System)
Nasional backbone
Regional Backbone
Data center facility
Metro ethernet network capacity
Internet gateway capacity
CDN (content distribution network) capacity
km
km
km
km
km
km
sqm
Gbps
Gbps
Gbps
160
70
20,000
8,770
40,200
36,800
95,000
126,284
1,100
1,590
Some services on business portfolio under CFU Enterprise including, provision of information & communication
technology (ICT) platform and smart enabler platform, connectivity services, satelite and access that give an end to
end solution. For corporate customers, in 2016 we served 2.524 Gbps bandwidth in service.
In Indonesia, the enterprise segment still has good growth opportunities. Potential growth came from higher demand
from the corporations for integrated ICT services. ICT services are also increasingly required by the SMEs which are
huge and most have not been enjoying good ICT services.
Meanwhile, Telkom’s infrastructure is also very strategically integrated to support the business growth for both cellular
and mobile, in addition to part of its capacity can be leased to other operators.
111
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Table of Service Performance for Corporate
segment of Telkom Group in 2014-2016
• Data and internet revenues by Rp3,630 billion, or
37.0%, due to an increase in data communication
others revenues by Rp991 billion or 72.8%, data
communication IT service revenues by Rp1,339 billion
Description
Unit
2016
2015
2014
revenues by Rp272 billion or 9.0%, e-business revenues
by Rp346 billion or 85.4%, Astinet revenues by Rp339
Quantity
or 71.1%, data communication VPN and ethernet
Satellite-
transponder
MHz
6,801
4,648
3,560
billion or 44.4% and data access internet revenues by
Rp304 billion or 13.3%;
Leased Channel Mbps
146,831
99,827
88.257
• Network revenues by Rp1,499 billion, or 17.6%, as a
DataComm
Mbps
764,397
1,907.012
930,327
Corporate
Internet
Mbps
1,750.617
146,843
93.368
1,6
1,5
1,5
Fixed Wireline
(voice)
million sub
scribers
Fixed Broad-
band
million sub
scribers
result of increases in leased line revenues by Rp1,203
billion, or 20.9% and transponder revenues by Rp295
billion or 10.7%.
The revenues increase was offset by a decrease in
interconnection revenues by Rp155 billion or 2.5% due
to a decrease in internasional interconnection revenues
by Rp536 billion or 11.6% and increase of domestic
0,5
0,4
0,4
interconnection revenues by Rp381 billion or 22.0%.
Table of Operational Performance for Corporate
segment of Telkom Group in 2014-2016
Our corporate segment expenses increased by Rp20,040
billion, or 70.8%, from Rp28,305 billion in 2015 to
Rp48,345 billion in 2016, primarily due to an increases in:
• Operation, maintenance and
telecommunication
services expenses by Rp17,168 billion, or 121.1% as
Operational
Results
Growth in
2016-2015
Year Ended December 31,
a result of increases in cooperation expenses by
2016
2015
2014
(%)
(Rp miliar)
Rp9,480 billion or 262.1%, operation and maintenance
(O&M) expenses by Rp6,651 billion, or 126.6%, cost of
IT services expenses by Rp960 billion, or 108.8% and
Revenue
Expenses
Segment
Rresult
60.5
56,852
35,419
29,415
electricity cost by Rp54 billion or 9.3%;
70.8
48,345
28,305
22,663
• Personnel expenses by Rp1,420 billion, or 34.6%, due
to an increase in personnel expenses by Rp500 billion
19.6
8,507
7,114
6,752
or 70.7%, net periodic pension cost by Rp399 billion or
Year ended December 31, 2016 compared to
year ended December 31, 2015.
Our corporate segment revenues increased by Rp21,433
billion, or 60.5%, from Rp35,419 billion in 2015 to
Rp56,852 billion in 2016. The increase was primarily due
to an increases in:
• Other revenues by Rp16,397 billion, or 186.7%, due to
an increase e-payment revenues by Rp8,572 billion
or 2,817.2%, manage services revenues by Rp5,556
billion, or 616.7%, manage device others revenues by
Rp656 billion or 100.0%, health facilities and services
revenues by Rp222 billion or 2,579.5%, technical
assistance service revenues by Rp201 billion or 218.1%,
CPE revenues by Rp581 billion or 665.0%, call center
services by Rp402 billion or 19.6%, e-health revenues
by Rp23 billion or 13.0%, power supply lease revenues
by Rp191 billion or 74.6%. This increase was offset due
to a decrease in directory assistance revenues by Rp9
billion or 2.3%;
112
361.7%, benefit expenses by Rp395 billion or 37.3% and
bonuses expenses increased by Rp121 billion, or 16.4%;
• Depreciation expenses by Rp1,440 billion or 53.2%
due to depreciation of transmission, satellite and other
equipment.
Year ended December 31, 2015 compared to
year ended December 31, 2014.
Our corporate segment revenues have increased by
Rp6,004 billion, or 20.4%, from Rp29,415 billion in 2014
to Rp35,419 billion in 2015. The increase was primarily due
to an increases in:
• Network revenues by Rp4,284 billion, or 101.2%, as a
result of an increase in leased line revenues by Rp4,144
billion, or 309.9%, an increase in transponder revenue
by Rp252 billion or 10.1% and was offset by a decrease
in international leased line by Rp119 billion or 85.1%.
• Data and internet revenues by Rp939 billion, or 10.5%,
due to an increase in data communication others
revenues by Rp1,037 billion, or 318.4% and was offset
by a decrease in high speed internet by Rp86 billion
or 8.6%.
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS •
Interconnection revenues by Rp565 billion, or 11.1%, due
HOME SEGMENT
to an increase in international IDD OLO revenues by
Rp360 billion, or 35.5% and an increase in international
In home segment, we serve the residential customers
IDD incoming revenues by Rp354 billion, or 16.0%. The
through:
increased was offset by a decrease of long distance
1. Fixed Services under CFU Consumer
cellular revenues by Rp89 billion or 2.2% and other
2. Consumer Digital under CFU Consumer and CFU
local revenues by Rp68 billion or 29.9%.
Digital Service
• Others telecommunications revenues by Rp418 billion,
or 5.7%, due to an increase in call center services
Our fixed service portfolio consists of the service of fixed
revenues by Rp591 billion, or 40.4% and was offset
voice and fixed broadband. IndiHome program which
by a decrease in CPE and terminal by Rp225 billion or
gives the package for all services within one package in
24.3%.
a competitive price that consists of broadband internet,
residential telephone and interactive TV service.
The increase was offset by a decrease in fixed wireline
revenues by Rp212 billion or 5.6% due to decreased on
On top of that we are continously developing interesting
local usage by Rp117 billion or 24.5%, long distance usage
programs, such as upgrading the internet connection
by Rp53 billion or 12.3% and IDD 007 usage by Rp22
speed and offering unlimited call for celullar phone in a
billion or 16.9%.
fixed price, wifi.id service, add-on service for customers
to enjoy unlimited internet access in all access points in
Our corporate segment expenses increased by Rp5,642
Indonesian Wi-Fi across Indonesia.
billion, or 24.9%, from Rp22,663 billion in 2014 to Rp28,305
billion in 2015, primarily due to an increase in:
The business portfolio of digital consumer especially
• Operation, maintenance and
telecommunication
media and edutainment service to the customers, covers
services expenses by Rp3,467 billion, or 32.2% as a
the service of e-commerce, video/TV service (such as
result of an increase in operation and maintenance
IPTV and over the top (“OTT”) TV), and digital-based
(O&M) expenses by Rp1,210 billion, or 57.9%, including
mobile service with four categories namely: digital
an increase in cooperation expenses by Rp771 billion,
lifestyle (such as game, music and mobile digital life
or 27.2%, leased lines and CPE expenses by Rp716
service), Digital banking and advertising (such as mobile
billion, or 61.7%, cost of IT services by Rp525 billion, or
banking and location-based ads), Machine to machine
146.8%, O&M supporting facilities by Rp130 billion or
(such as T-Drive, T-Bike), and mobile financial service
36.0%, transportation by Rp65 billion or 7.3% and O&M
(such as T-Cash, T-Wallet)
land and building by Rp46 billion or 14.4%.
•
Interconnection expenses by Rp779 billion, or 19.4%,
Telkom Group also strengthened the infrastructure for
as a result of an increase in international IDD007
home segment through the improvement of the capacity
interconnection expenses by Rp530 billion, or 28.1%
for the exchange of fixed wireline become 15.7 million
and Telkom Global
international
interconnection
connections, and access point of Wi-Fi to become
expenses by Rp258 billion, or 95.8%.
362,200 spots.
• Employee expenses by Rp534 billion, or 14.9%, due to
an increase in early retirement program expenses by
Rp246 billion or 100.0%, bonuses expenses by Rp179
billion, or 31.7% and personnel expense by Rp101 billion
or 16.7%.
• Others expenses by Rp886 billion, or 293.5%, due to
penalty and commitment charge by Rp460 billion,
income tax expenses by Rp117 billion, or 25,415.4%,
others non-operating expenses by Rp265 billion, or
127.3%, and tax expense by Rp33 billion or 82.9%.
• Marketing expense by Rp49 billion or 6.7% due to an
increase in advertising and promotion by Rp43 billion
or 10.2%.
113
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Telkom Group Infrastructure Table 2014 - 2016
Infrastructure Type
Exchange capacity of fixed wireline
Wi-fi access point
Unit
Line
spot
2016
Year
2015
2014
15.738.802
14.946.076
13.946.801
362.200
321.736
177.514
In an effort to revitalize our fixed line business, in early 2015 we launched IndiHome, a fiber based fixed broadband
which is a triple play services consist of home telephone, high-speed internet and IPTV. At the end of 2016, total
IndiHome customer reached 1.6 million subscribers. So our total fixed broadband subscribers, including non IndiHome,
reached 3.9 million subscribers, increased 8.3% from 3.6 million subscribers at the end of 2015. As for the subscribers
for fixed wireline subscribers (voice) reach 9.1 million by the end of 2016, or an increase of 3.8% from 8.7 million in 2015.
We make a lot of effort to migrate fixed wireline (voice) and non IndiHome fixed broadband subscribers, to be IndiHome
customers in order to enjoy a better customer experience. To further enhance the attractiveness of IndiHome, we
continued to enrich the content, among which by cooperating with world-class video streaming providers, music
streaming provider and games developers. We have also increased our stake in PT Melon Indonesia, music streaming
provider that has more than 5 million song catalog, to 100% from 51% previously.
Telkom believesthe prospect of IndiHome. In the future, the need for high quality fixed broadband services will increase
along with the growing middle class segment in Indonesia. Moreover, the penetration of fixed broadband services in
Indonesia is still relatively low at less than 10%. The high potential of fixed broadband business has also attracted some
fixed broadband providers to compete, especially in big cities.
Table of Service Performance for Home
Segment of Telkom Group in 2014-2016
Description
Unit
Fixed Wireline
(voice)
million
subsribers
Fixed Broadband
(IndiHome)
million
subsribers
• Other revenues by Rp926 billion, or 51.5%, primarily
due to an increase in CPE revenues by Rp930
billion or 53.5% and offset by decrease ini other
telecommunication service revenues by Rp4 billion or
78.0%;
• Data and internet revenues by Rp163 billion, or 2.9%,
Quantity
2016
2015
2014
9.1
8.7
8.2
as a result of an increase in Pay TV revenues by Rp591
billion, or 141.8%, in line with the increase in the IndiHome
3.9
3.6
3.0
subscribers 8.3% from 3.6 million as of December 31,
2015 to 3.9 million as of December 31, 2016. This increase
partially offset by decrease in data communication
others revenues by Rp451 billion, or 38.2%.
The increase was partially offset by a decrease in fixed
wireline revenues by Rp74 billion or 1.7% due to decrease
in usage;
Table of Operational Performance for Home
Segment of Telkom Group in 2014-2016
Operational
Result
Growth in
2016-2015
(%)
Year Ended December 31,
2016
2015
2014
Rp (billion)
Our home segment expenses increased by Rp1,165 billion,
Revenues
Expenses
Operating Profit
10.4
12,880
11,671
9,349
or 10.2% from Rp11,411 billion in 2015 to Rp12,576 billion in
10.2
16.9
12,576
11,411
8,960
2016. This increase primarily due to an increases in:
304
260
389
• Operation, maintenance and
telecommunication
Year ended December 31, 2016 compared to
year ended December 31, 2015.
Our home segment revenues increased by Rp1,209 billion,
or 10.4%, from Rp11,671 billion in 2015 to Rp12,880 billion
in 2016 mainly due to an increases in:
114
services expenses by Rp1,187 billion, or 27.1%, due to
an increase in cooperation expenses by Rp566 billion,
or 79.7%, leased lines and CPE expenses by Rp376
billion, or 71.2%, operation and maintenance expenses
by Rp102 billion or 39.1% and call center expense by
Rp134 billion or 157.9%;
• Marketing expenses by Rp145 billion or 25.4% due to
increase in advertising and promotion by Rp114 billion
or 32.5%.
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
The increases were partially offset by a decrease in
• Operation, maintenance expenses by Rp1,932 billion,
personnel expenses by Rp186 billion or 4,9% due to a
or 79.2%, due to an increase in terminal/handset
decrease in early retirement program expenses by Rp154
expenses by Rp1,071 billion, or 258.4%, increased in
billion or 46.9% and post retirement health care by Rp49
cooperation expenses by Rp552 billion, or 349.6%,
billion or 39.7%.
Year ended December 31, 2015 compared to
year ended December 31, 2014.
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 an increases in:
• Data and internet revenues by Rp1,361 billion, or 32.3%,
as a result of an increase in others data communication
by Rp722 billion, or 26.3%, Pay TV revenues by Rp341
billion, or 451.7%, in line with the achievement of the
IndiHome subscribers by 1 million subscribers, an
increase in high speed internet revenues by Rp150
billion, or 4.0% and high speed internet monthly
subscription by Rp52 billion or 408.7%.
an increase in leased lines and CPE expenses by
Rp403 billion, or 322.2%. This increase was offset by
a decrease in insurance expense by Rp40 billion or
33.4% and vehicle rent by Rp30 billion or 30.7%.
• Employee expenses by Rp508 billion, or 15.4%, due to
early retirement program expenses by Rp328 billion
or 100.0%, an increase in bonuses expenses by Rp231
billion, or 35.1%, an increase in net periodic post-
retirement healthcare benefits by Rp81 billion or 192.1%.
This increase was offset by a decrease in net periodic
pension costs by Rp156 billion or 51.2%.
• Other expense by Rp606 billion or 1,444.9% due to an
increase in penalty and commitment charge by Rp364
billion or 100.0% and others non-operating expenses
by Rp243 billion or 1,151.1%.
• Others telecommuniaction revenues by Rp1,118 billion
The increased were offset by a decrease in:
or 164.6% primarily due to an increase in Customer
Premise Equipment (CPE) and terminal sale and leased
revenues by Rp1,185 billion or 214.1%
The increase was offset by a decrease in other revenue by
Rp49 billion or 21.9% and fixed wireline revenue by Rp25
• General administrative expense by Rp291 billion or
19.7% due to a decrease in provision for impairment
of receivables by Rp160 billion or 35.1% and training,
education and recruitment by Rp119 billion or 46.4%.
• Depretiation and amortization expenses by Rp291
billion or 0.6%.
billion, or 19,4%.
Our home segment expenses increased by Rp2,451 billion,
or 27.4% from Rp8,960 billion in 2014 to Rp11,411 billion in
2015. This increase primarily due to an increases in:
Testimony
IndiHome Customer
Febry Meuthia
Blogger
I become customers indihome since February 2016. And all my needs are
met. Fast internet, UseeTV indulgent audience and fixed phone with the
best connection quality.
Amenities TV on demand, playback and record are my favorite, because I
can watch favorite shows anytime so I will not missed my favorite athletes
on sports channel.
Furthermore the additional services such as Movin, Iflix, CACTHPLAY and
HOOQ, those are about “all you could ask” for these OTT services.
115
IndiHome is certainly the best!
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS PERSONAL SEGMENT
Table of Service Performance for Personal
Segment of Telkom Group in 2014-2016
We serve individual customers in our personal segment
through mobile business portfolio under CFU mobile.
Keterangan
Unit
Portfolio of mobile or cellular products consists of the
service of mobile voice, SMS as well as mobile broadband
Cellular
with GSM technology through Telkomsel and it becomes
the largest contributor to the consolidated revenue in
Mobile Broadband
million
subsribers
million
subsribers
2016.
Quantity
2016
2015
2014
173.9
152.6
140.6
60.0
43.8
31.2
Market brand mobile for postpaid customers is kartuHalo,
meanwhile our prepaid customers in the approximate
amount of 98% of total mobile customers, named simPATI,
Kartu As and Loop. Our mobile broadband service
under the name of Telkomsel Flash, is supported by the
Operating Result
technology of LTE/HSDPA/3G/EDGE/GPRS.
Growth in
2016-2015
(%)
Year Ended December 31,
2016
2015
2014
Rp (billion)
Table of Operational Performance for Personal
Segment of Telkom Group in 2014-2016
To support our mobile customers, we had 129,033 BTS
as infrastructure, which consists of 78,698 BTS 3G/4G.
Especialy for 4G LTE services we have 6,362 BTS in 169
cities.
Service performance in personal segment was conducted
well during 2016. This can be seen from the growth of
total customers of mobile in the amount of 13.9% in
2015 to 173.9 million, consisting of 4.2 million postpaid
customers and 169.7 million prepaid customers. Further,
until December 31, 2016, we have 60 million customers
for mobile broadband (TelkomselFlash) compared to
43.8 million in December 31, 2015. The growth in mobile
broadband subscribers has driven mobile data traffic to
grow by 94.8% to 958.7 petabytes.
We also enrich the content to further enhance the
customer experience of our mobile customers, including
by working with video streaming providers, music
streaming providers and games developers.
Although SIM card penetration has been relatively high,
but we believe that the growth potential of the mobile
industry will remain good, mainly driven by digital
businesses, in line with the increasingly widespread use
of smartphones. Smartphone penetration is still relatively
low in Indonesia of less than 50%, but is growing rapidly
supported by the lower handset price. The more variety
of content and applications, in particular video based
ones, will encourage more data consumption.
116
Revenues
Expenses
13.9
86,714
76,131
66,686
0.0
51,303
51,303
44,786
Operating Profit
42.6
35,411
24,828
21,900
Year ended December 31, 2016 compared to
year ended December 31, 2015.
Our personal segment revenues increased by Rp10,583
billion, or 13.9% from Rp76,131 billion in 2015 to Rp86,714
billion in 2016, mainly due to an increase in:
• Data and internet revenues by Rp9,416 billion, or 27.1%,
due to an increase in cellular data communication
revenues by Rp8,548 billion, or 43.8%, in line with the
increase in Telkomsel Flash subscribers 37.1% from 43.8
million as of December 31, 2015 to 60.0 million as of
December 31, 2016. SMS revenues increased by Rp868
billion, or 5.8% as a result of cluster based pricing
implementation;
• Cellular revenues by Rp1,263 billion, or 3.4%, due
to an increase in cellular monthly subscription by
Rp1,369 billion, or 13.9%, in line with increased cellular
subscribers by 13.9% to 173.9 million in 2016. The
increase partialy offset by decrease international
usage by Rp120 billion, or 20.9%.
The increase was partially offset by a decrease in fixed
wireless revenues by Rp101 billion or 109.0% because of
Flexi termination.
Our personal segment expenses stagnant in Rp51,303
billion in 2016. The expenses were primarily due to the
increases in:
• Operation, maintenance and
telecommunication
services expenses by Rp1,255 billion, or 5.0%, due to the
increase in radio frequency usage charges by Rp1,129
billion or 28.3% and leased line and CPE expenses by
Rp85 billion or 5.0%;
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 117
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS • Marketing expenses by Rp728 billion, or 26.4%, mainly
Our personal segment expenses increased by Rp Rp6.517
due to an increase in advertising and promotion by
billion, or 14,6% from Rp44.786 billion in 2014 to Rp51.303
Rp609 billion, or 27.0% and customer education and
billion in 2015, primarily due to an increases in:
press release by Rp119 billion or 24.1%;
• Operation and maintenance (O&M) expenses by
• Personnel expenses by Rp505 billion, or 13.2%,
Rp4,540 billion, or 21.9% due to an increase in manage
primarily due to an increase in personnel expenses
capacity service by Rp1,686 million or 100.0%, O&M
and employee benefit by Rp285 billion or 19.4.%, net
power supply expenses by Rp906 billion or 43.8% in
periodic pension Rp132 billion or 262.7% and bonuses
line with BTS Telkomsel growth by 20,9% to 103,289
expenses by Rp60 billion, or 5.6%.
units in 2015, O&M transportation expenses by Rp749
These increase was partially offset by decrease in:
billion or 16.2%, O&M radio base station by Rp1,024
• Depreciation and amortization expenses by Rp1,982
billion or 24% dan leased expenses by Rp210 billion or
billion, or 13.6%, primarily due to depreciation of
23.2%.
transmission and switching equipment;
• Depreciation and amortization expenses by Rp2,460
• General administration expenses by Rp174 billion or
billion, or 12.8% primarily due to an increase in
121.9% due to a decrease in collection fee expenses
transmission installation and equipment depreciation
by Rp277 billion or 63.7%, partially offset by provision
expenses by Rp1,771 billion or 21.8%, amortization by
for impairment of receivables by Rp73 billion or 49.0%
Rp226 billion or 67.3%, leased assets depreciation by
and increased in social contribution by Rp27 billion or
Rp216 billion or 34.1%, building depreciation by Rp20
55.2%;
• Other expenses by Rp244 billion or 121.9% due to
billion or 76.6%, cable network depreciation by Rp55
billion or 103.9%, switching depreciation by Rp13 billion
decrease in non operating expenses.
or 1.1%, leasehold depreciation by Rp17 billion or 34.5%
Year ended December 31, 2015 compared to
year ended December 31, 2014.
Our personal segment revenues increased by Rp9,445
dan vehicle depreciation by Rp3 billion or 11.4%.
• Employee expenses by Rp1,091 billion or 39.9% due
to an increase in bonuses expenses by Rp497 billion
or 87.2%, employees’ income tax expenses by Rp200
billion or 44.6%, early retirement expenses by Rp216
billion or 100% and long service award by Rp190 billion
billion, or 14.2% from Rp66,686 billion in 2014 to Rp76,131
or 165.5%.
billion in 2015, mainly due to the an increase in:
• Data and internet revenues by Rp7,083 billion, or 25.7%
This increase were offset by a decrease in:
•
Interconnection expenses by Rp1,481 billion or 31.3%
due to a depreciation in Blackberry collaboration
expenses by Rp1,078 billion or 69% in line with a
decrease in Blackberry subscribers by 31.7% to 4,0
million subscribers in 2015 and a decrease in cellular
IDD interconnection expenses by Rp331 billion or 54.1%.
• General and administration expenses by Rp66 billion
or 4.1% due to a decrease in collection expenses by
Rp270 billion or 38.3%, and wass ofset by an increase
in professional fees by Rp118 million or 98.7%, training,
education, and recruitment by Rp28 billion or 40.6%,
social contribution by Rp22 billion or 83.6%, and
receivable by Rp15 billion or 11.3%.
• Foreign exchange loss by Rp55 billion or 53.5%.
due to an increase in communication data cellular by
Rp6,015 billion, or 44.5% in line with an increase in
Telkomsel Flash subscribers by 40.3% from 31.2 billion
in 2014 to 43,8 billion in 2015, an increase in payload
data by 109.6% to 492.245 TB in 2015 and SMS revenue
by Rp1,195 billion or 8.6% due to an acomplishment in
cluster based pricing implementation. This increase
was offset by a decrease in SMS fixed wireliness by
Rp100 billion or 97.0%.
• Cellular revenues by Rp3,088 billion or 9.1% due to an
increase in cellular commitment revenues by Rp2,083
billion or 28.3%, in line with an increase in cellular
subscribers by 8.6% to 152.6 billion in 2015, cellular
long-distance usage revenues by Rp658 billion or 7.0%
and cellular features revenue by Rp286 billion or 37.5%.
This increase was offset by a decrease in:
• Fixed wireless revenues by Rp437 billion, or 82.5% due to
Flexi service termination, local used by Rp119 billion or 71.9%,
long distance usage by Rp266 billion, or 89.4% and monthly
subscription by Rp49 billion or 78.1%
• Other revenues by Rp110 billion or 50% due to a
decrease in non operational revenues.
118
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS OTHER SEGMENT
In other segment, Telkom Group through Telkom Property provides the services for building management and its
facilities, including the lease of office buildings, hotel development, of commercial buildings leases and transportation
management.
In this segment, the Company is leveraging its property assets, such as land and buildings which are not optimally
utilized, to be developed into office buildings, business buildings, hotels, and other profitable investments. These lands
are the result of the implementation of the network transformation made by Telkom in the past several years. The
property can be used by Telkom Group or cooperated with third parties through our subsidiary, Telkom Property. With
the right business model, these assets are expected to provide greater benefits for the Company in the future.
A major projects that has been built is Telkom Smart Office tower with 20 floors which is occupied by Telkomsel, and
we are in the stage of development of other office tower with 52 floors which will be the new Telkom headquarters and
is planned for completion in 2017.
Table of Operational Performance for Other Segments of Telkom Group In 2014-2016
Operational Result
Revenue
Expense
Operating Profit
Growth in
2016-2015
(%)
Year Ended December 31.
2016
2015
(Rp billion)
2014
22.3
25.0
(3.2)
2,758
2,549
209
2,256
2,040
216
1,883
1,718
165
Year ended December 31, 2016 compared to year ended December 31, 2015.
Our other segment revenues increased by Rp502 billion, or 22.3%, from Rp2,256 billion in 2015 to Rp2,758 billion in
2016 mainly due to an increase in other revenues by Rp502 billion or 22.3%. This increase were contributed by lease
building and hotel revenues by Rp140 billion, or 10.7% and project management service, property development and
retail revenues by Rp362 billion, or 38.2%.
Our other segment expenses increased by Rp509 billion, or 25.0%, from Rp2,040 billion in 2015 to Rp2,549 billion in
2016 mainly due to an increases in:
• Operation, maintenance and telecommunication service expense by Rp402 billion, or 23.3%, due to an increase in
project management expenses by Rp311 billion, or 268.2%, and in operation & maintenance other by Rp57 billion, or
61.1%.
• Depreciation expenses by Rp32 billion, or 34.8%, mainly due to an increase in depreciation of property.
• General and administration expense by Rp14 billion, or 22.7%, primarily due to an increase in provision for impairment
of receivables by Rp6 billion, or 114.3% and remuneration expenses by Rp4 billion, or 12.8%,
• Personnel expenses by Rp19 billion, or 13.6%, due to an increase in personnel expenses, position, conjunctur and
medical benefit.
119
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Triple Double Digit Growth
PENDAHULUAN
IKHTISAR KEUANGAN DAN
OPERASIONAL
LAPORAN MANAJEMEN
TENTANG TELKOM
INDONESIA
ANALISA DAN
PEMBAHASAN MANAJEMEN
Year ended December 31, 2015 compared to
year ended December 31, 2014.
Our other segment revenues increased by Rp373 billion,
or 19.8% from Rp1,883 billion in 2014 to Rp2,256 billion in
2015 mainly due to an increases in:
• Leased revenues by Rp225 billion or 20.8% due to an
increase in building management revenues by Rp193
billion or 20.5% and building lease revenues by Rp28
billion or 22.6%
• Other revenues by Rp148 billion or 18.4% due to an increase
in other revenues by Rp72 billion or 329.1%, transportation
management service revenues by Rp50 billion or 40.1%
and security service revenues by Rp44 billion or 13.6%. This
increase was offset by a decrease in management project
revenues by Rp30 billion or 13.7%.
Our other segment expenses increased by Rp322 billion,
or 18.7%, from Rp1,718 billion in 2014 to Rp2,040 billion
2015 mainly due to an increases in:
• Operation and maintenance expenses by Rp246 billion
or 16.7% due to an increase in collaboration with third
parties by Rp112 billion or 71.7%, vehicle rent and
supported facilities by Rp42 billion or 43.9%, electricity,
gas, and water expenses by Rp44 billion or 6.8%, and
security operational expenses by Rp44 billion or 15.7%.
• Depreciation and amortization expenses by Rp31
billion or 50.8% due to an increase in power supply
depreciation expenses, vehicles depreciations, and
building depreciations.
• General and administration expenses by Rp20 billion
or 53.6% primarily due to an increase in provision for
impairment of receivables by Rp5 billion or 2,793.9%,
meeting expenses by Rp4 billion or 155.7%, professional
fees expenses by Rp3 billion or 224.0%.
• Employees expenses by Rp16 billion or 12.9% due to
an increase in outsourcing expenses by Rp6 billion,
or 11.9%, bonuses expenses by Rp4 billion or 61.9%,
pension expenses by Rp3 billion or 158.9%, incentives
expenses by Rp2 billion or 20.8% and marketing
expenses by Rp2 billion or 19.7% due to an increase in
representative expenses.
Revenues
EBITDA
Net Income
Rp116,333
Rp59,498
billion
billion
Rp19,352
billion
Increase by
Increase by
Increase by
13.5%
15.7%
24.9%
120
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
TELKOM GROUP
FINANCIAL AND
MANAGEMENT REPORT
OPERATIONAL HIGHLIGHTS
ABOUT TELKOM
INDONESIA
MANAGEMENT DISCUSSION
AND ANALYSIS
CORPORATE
GOVERNANCE
CORPORATE SOCIAL
RESPONSIBILITY
PARTNERSHIP AND COMMUNITY
DEVELOPMENT PROGRAM
APPENDICES
CONSOLIDATED
FINANCIAL STATEMENTS
Triple Double Digit Growth
Revenues
EBITDA
Net Income
Rp116,333
billion
Rp59,498
billion
Rp19,352
billion
Increase by
Increase by
Increase by
13.5%
15.7%
24.9%
FINANCIAL PERFORMANCE OVERVIEW
The year of 2016 was an encouraging year because Telkom had recorded a triple double digit growth performance, they
were double digit growth for revenue, EBITDA and net income. Briefly, the growths of key financial performances of
Telkom Indonesia the the last 5 (five) years are as folllows:
,
1
1
6
9
7
1
3
7
1
,
6
6
1
2
2
8
,
1
4
1
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
7
6
0
4
7
,
5
4
7
2
7
,
0
3
8
5
5
,
4
8
3
4
8
,
6
3
1
,
5
7
1
2
7
7
6
,
3
3
3
6
1
1
,
0
7
4
2
0
1
,
6
9
6
9
8
,
2
5
,
.
9
1
9
8
4
5
1
,
1
7
4
4
1
,
Total Asset
Total Liabilities
Total Equity
Revenue
Net Income
2016
2015
2014
Total assets were increased by 8.1% from Rp166,173 billion in 2015 to Rp179,611 billion in 2016, while revenues in 2016
were increased by 13.5% from in Rp102,470 billion in 2015 to Rp 116,333 billion in 2016. This drove an increase in net
income in 2016 by Rp 3,863 billion, or 24.9%, from Rp15,489 billion in 2015 becoming Rp19,352 billion and EBITDA in
2016 amounted Rp59,498 billion, or increased 15.7% from previous year.
FINANCIAL POSITION OVERVIEW
These tables show financial position of Telkom for three years, from 2014 to 2016.
Consolidated statements of financial position table
2016-2015
2016
2015
2014
Pertumbuhan
Tahun-tahun yang berakhir 31 Desember
Total Current Assets
Total Non-Current Assets
Total Assets
Total Current Liabilities
Total Non-Current Liabilities
Total Liabilities
(%)
(Rp miliar)
(US$ juta)
(Rp miliar)
(Rp miliar)
(0.4)
47,701
3,541
47,912
34,294
11.5
131,910
9,791
118,261
107,528
8.1
179,611
13,332
166,173
141,822
12.3
(8.1)
39,762
2,951
35,413
32,318
34,305
2,546
37,332
23,512
1.8
74,067
5,498
72,745
55,830
Total Equity attributable to owners of the parent company
12.3
84,384
6,263
75,136
67,721
122
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Financial Position Comparison
Composition of Assets and Liability during 2016, 2015 and 2014
Composition of Asset 2016
Composition of Liabilities 2016
47,701 (26.6%)
Current Asset
Non Current Asset
131,910 (73.4%)
34,305 (46.3%)
Non Current
Liabilities
Current
Liabilities
39,762 (53.7%)
Composition of Asset 2015
Composition of Liabilities 2015
47,912 (28.8%)
37,332 (51.3%)
Current Asset
Non Current Asset
Non Current
Liabilities
Current
Liabilities
118,261 (71.2%)
35,413 (48.7%)
Composition of Asset 2014
Composition of Liabilities 2014
34,294 (24.2%)
23,512 (42.1%)
Current Asset
Non Current Asset
Non Current
Liabilities
Current
Liabilities
107,528 (75.8%)
32,318 (57.9%)
123
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS This increase was offset by decrease in prepaid
pension benefit costs amounted to Rp1,132 billion, or
85.1% due to an incrrease in defined benefit obligation
by Rp2,344 billion or 14% due to a change in actuarial
assumption related to a decrease in discount rate by 1%
from 9% in 2015 to 8% in 2016. Meanwhile, fair value of
pension assets increase by Rp1,212 billion or 6.8% due
to actual benefit from investation by Rp2,601 billion
and was offset by benefit paid by Rp1,432 billion.
2. Liabilities
As of December 31, 2016, total liabilities increase by
1.8% from Rp72,745 billion in 2015 to Rp74,067 billion
(US$ 5,498 million) in 2016.
a. Current Liabilities
As of December 31, 2016, our current liabilities were
Rp39,762 billion (US$ 2,951 million) compared to
Rp35,413 billion as of December 31, 2015.
The increases in current liabilities were primarily due
to:
• An increase in accrued expenses by Rp3,036
billion, or 36.8%
in
line with operating,
maintenance and telecommunication service
as well as an increase in expenses by 12%.
This increases were related significantly with
operational and maintenance expenses of
Telkomsel Tower in line with an increase in tower
leased addition in 2016 significantly. In addition,
it was also due to an increase in employee benefit
expenses of Telkom and Telkomsel Rp720 billion
and Rp284 billion respectively, especially related
to to an increase in incentives;
• An increase in unearned revenues amounted to
Rp1,203 billion, or 27.6% related to prepaid pulse
reload voucher;
• An increase in current maturities on long-term
liabilities Rp679 billion, or 17.7%;
• An increase in short-term bank loan Rp309
billion, or 51.3%;
These increases were offset by:
• A decrease in trade payable by Rp476 billion,
or 3.4% due to an decrease in trade payables to
related party;
• A decrease in tax payable by Rp319 billion, or 9.7%;
• A decrease in other debts by Rp118 billion, or 40.7%.
As of December 31 2016 compared to as of
December 31 2015
1. Assets
As of December 31, 2016, total assets of Telkom I shows
an increases by 8.1% from Rp 166,173 billion in 2015 to
Rp 179,611 billion (US$13,332 million) in 2016.
a. Current Assets
As of December 31, 2016, our current assets were
Rp47,701 billion (US$3,541 million) compare to
Rp47,912 billion as of December 31, 2015. The
decrease in current assets were mainly due to:
• A decreasein other current financial assets by
Rp1,347 billion, or 47.8% due to the withdrawal
of escrow account related to the transfer of Flexi
business;
• A decrease in our advances and prepaid expense
by Rp593 billion, or 10.2%;
• A decrease in prepaid tax amounted to Rp534
billion, or 20.0%;
• A decrease in receivable by Rp154 billion, or 2.0%
due to an decrease in related party receivable.
These decrease were offset by:
• An increase in our cash and cash equivalents
Rp1,650 billion, or 5.9% due to increase in cash
receipt from operational activities;
• An increase in tax restution by Rp526 billion,
or 797.0% related to income tax restitution for
Telkom’s subsidiaries;
• An increase in receivable by Rp182 billion, or
51.3%;
b. Non Current Assets
As of December 31 2016, our non current assets were
Rp131,910 billion (US$9,791 million) and Rp118,261
billion as od December 31, 2015.
The increases in non current assets were mainly due to:
• An increase in fixed asset by Rp10,798 billion
or 10.4% related to addition of fixed assets of
Telkom primarily related to access infrastructure
and backbone installation and addition of fixed
assets of Telkomsel primarily related to access
radio network;
• An increase in our advanced and other non-
current asset of Rp3,342 billion, or 40.9% related
to an increase in down payment for Telkom 3S
and Telkom 4 satellite purchases, restitution
claim VAT of subsidiaries and prepaid taxes of
overpaid VAT of Telkom;
• An increase in deferred tax assets Rp568 billion,
or 282.6%;
124
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS b. Non Current Liabilities
3. Equity
As of December 31, 2016, our non current liabilities
were Rp34,305 billion (US$ 2,546 million) compare to
Rp37,332 billion as of December 31, 2015. The decrease in
non current liabilities was primarily due to:
• A decrease in bank loans amounted to Rp3,505
billion, or 22.7% due to a decrease of bank debt
of Telkomsel by Rp4,172 billion and was offset by
an increase in bank debt of Dayamitra by Rp1,079
billion;
• A decrease in deferred amounted to Rp1,365
billion, or 64.7% due to a decrease in deffered
tax liabilities of Telkom and Telkomsel by Rp459
billion and Rp950 billion respectively. The
decrease of Telkomsel was related to assets
transfer of flexi business (CBTA);
• A decrease in obligations under finance leases
amounted to Rp587 billion, or 14.9%;
• A decrease in two-step loans amounted to Rp229
billion, or 17.7%;
• A decrease in bond and notes by Rp177 billion,
or 1.9%.
This increase was offset by:
• An
increase
in pension and other post-
employment benefits amounted to Rp1,955
billion, or 46.9% due to an increase in define
benefit obligation by Rp2,415 billion or 22% due
to a change in actuarial assumption related to a
decrease in discount rate by 0.75% from 9.25% in
2015 to 8.5% in 2016 resulting in actuarial loss by
Rp1,735 billion. Meanwhile, fair value of pension
assets increase by Rp941 billion or 8.6% due to
an increase in stock fair value and mutual fund
by Rp403 billion and Rp473 billion respectively;
• Other lending of Dayamitra by Rp697 billion;
• An increase in long service awards amounted to
Rp112 billion, or 22.4%.
Total equity increase by Rp12,116 billion, or 12.9%, from
Rp93,428 billion as of December 31, 2015 to Rp105,544
billion (US$7,834 million) as of December 31, 2016. The
increase of equity was primarily due to:
• An increase in additional paid-in capital and a
decreased in treasury stock due to sale of treasury
stock in 2016 by Rp3,300 for 864 million shares in
the price of Rp3,820/share (full value) while the
price of treasury stock was Ro1,263 billion;
• An increase in retained earnings by Rp6,158 billion
or 8.7% due to total comprehensive income for the
year attributable to parent company by Rp17,331
billion reduced by devidend by Rp11,213 billion;
• An increase in non-controlling interest edpenses
due to the addition of net comprehensive income
attributable to non-controlling owner by Rp9,820
billion reduced by devidend by Rp7,058 billion.
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 in 2015.
a. Current Assets
As of December 31, 2015, our current assets were
Rp47,912 billion compare to Rp34,294 billion as of
December 31, 2014. The increase in current assets
was mainly due to:
• An increase in our cash and cash equivalents
Rp10,445 billion, or 59.1% in time deposit,
• An increase in prepaid tax amount Rp1,782 billion,
or 200.2% due to tax incentive policy,
• An
increase
in our advances and prepaid
expenses Rp1,106 billion, or 23.4%, and
• An increase in our trade receivables by Rp520
billion, or 7.4%.
This increased was offset by decreased in tax restitution
amounted to Rp225 billion, or 77.3%.
125
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS b. Non Current Assets
This increase was partially offset by
As of December 31, 2015 our non current assets
• A decrease in current maturities on long-term
were Rp118,261 billion and Rp107,528 billion as of
liabilities Rp2,057 billion, or 34.9%;
December 31, 2014.
This increase was due to:
• A decrease in short-term bank loan Rp1,208
billion, or 66.7%.
• An increase in property, plant and equipment-net
accumulated depreciation by Rp8,891 billion, or
b. Non Current Liabilities
9.4%,
As of December 31, 2015, our non current liabilities
• An increase in our advanced and other non-
were Rp37,332 billion and Rp23,512 billion as of
current asset of Rp942 billion, or 13.0%, and
December 31, 2014 which was primarily due to:
• An increase in intangible assets-net accumulated
• An increase in bank loans of Rp7,556, or 95.9%,
amortization by Rp593 billion or 24.1%.
primarily contributed by medium-term loans of
2. Liabilities
As of December 31, 2015, total liabilities increase by
30.3% from Rp55,830 billion in 2014 to Rp72,745 billion
Telkomsel amounted to Rp5,061 billion:
• An increase in bond and notes Rp7,260 billion,
or 324.3% related to Telkom bond issued in 2015.
in 2015.
a. Current Liabilities
3. Equity
Total equity increased by Rp7,436 billion, or 8.6%, from
As of December 31, 2015, our current liabilities were
Rp85,992 billion as of December 31, 2014 to Rp93,428
Rp35,413 billion compared to Rp32,318 billion as of
billion as of December 31, 2015. The increase of equity
December 31, 2014.
was primarily the result of total comprehensive income
This increase was primarily due to:
for the year attributable of Rp23,948 billion as of
• An increase of Rp3,036 billion, or 58.3%, in
December 31, 2015. Retained earning increased to
accrued expenses, related to early termination of
Rp7,220 billion, or 11.4% and total equity attributable
Flexi Tower provision,
to owner of the parent company increased by Rp7,415
• An increase of Rp1,632 billion or 13.2%, in trade
billion, or 10.9%, from Rp67,721 billion as of December
payable, and
31, 2014 to Rp75,136 billion as of December 31, 2015.
• An increase of Rp897 billion, or 37.8%, in tax
payable.
126
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS PROFIT AND LOSS OVERVIEW
This table shows Telkom Comprehensive Profit from 2014 until 2016, each item is presented in percentage of total
income or expense:
Table of Comprehensive Income
Revenues
Telephone Revenus
Cellular
Usage charges
Growth
2015 -
2014
(%)
Years ended December 31,
2016
2015
(Rp
billion)
(US$
million)
%
(Rp
billion)
%
2014
(Rp
billion)
%
13.5
116,333
8,635 100.0
102,470 100.0
89,696 100.0
2.0
46,039
3,417
39.6
45,118 44.0
42,725
47.6
3.3
3.8
38,497
38,238
2,857
33.1
37,285
36.3
34,290
38.2
2,838
32.9
36,853
35.9
33,723
37.6
Monthly subscription charges
(40.0)
259
Fixed Line
Usage charges
Monthly subscription charges
Call center
Others
Interconnection Revenues
Data, Internet and Information
Technology Revenues
(3.7)
7,542
(17.0)
3,847
17.4
5.5
(7.9)
(3.2)
3,311
290
94
4,151
19
561
286
246
22
7
308
0.2
6.5
3.3
2.8
0.2
0.1
3.6
432
7,833
4,635
2,821
275
102
4,290
0.4
7.7
4.5
2.8
0.3
0.1
4.2
567
8,435
5,347
2,697
290
101
4,708
0.6
9.4
6.0
3.0
0.3
0.1
5.2
23.3
58,971
4,377
50.6
47,820
46.6
37,808
42.2
Celluler internet and data
43.9
28,308
2,101
24.3
19,665
Short Messaging Service (SMS)
5.6
15,980
1,186
13.7
15,132
19.2
14.8
13,563
14,034
15.1
15.6
Internet, data communication and
information technology services
6.2
13,073
970
11.2
12,307
12.1
9,987
Pay TV
Others
Network Revenues
Other Telecommunications Revenues
Sales of handset
Tower leased
Call center service
E-payment
E-Health
CPE and terminal
Others
Expenses
Depreciation and Amortization Ex-
penses
Operations, Maintenance and
Telecommunication Services
Expenses
166.1
1,546
(52.5)
17.3
42.8
(1.7)
1.6
1.5
236.8
116.0
(13.3)
216.8
64
1,444
5,728
1,490
733
678
424
415
192
115
5
107
425
111
54
50
31
31
14
1.3
0.1
1.2
4.9
1.3
0.6
0.6
0.4
0.4
0.1
1.5
581
135
1,231
4,011
1,516
721
668
126
192
221
567
0.4
0.1
1.2
4.0
1.5
0.7
0.7
0.1
0.2
0.2
0.6
96
128
1,280
3,175
582
700
446
74
165
61
1,147
1,796
134
8.9
77,888
5,781 100.0
71,552 100.0
61,564 100.0
0.0
18,532
1,376
23.8
18,534
25.9
17,131
27.8
11.2
31,263
2,320
40.1
28,116
39.2
22,288
36.2
11.1
0.1
0.1
1.4
3.5
0.6
0.8
0.5
0.1
0.2
0.1
1.3
Operations and Maintenance
12.7
17,047
1,265
21.9
15,129
Radio frequency usage charges
1.7
3,687
Leased lines and CPE
34.8
2,578
274
191
4.8
3.3
3,626
1,913
21.1
5.1
2.7
11,512
3,207
18.7
5.2
1,073
1.7
Concession fees and Universal
Service Obligation (USO) charges
Cost of information technology
service
Cost of handset sold
Electricity, gas and water
(0.8)
(5.3)
1,481
960
110
71
1.9
1.2
1,493
1,014
77.2
1,563
116
2.0
882
(0.6)
2,217
165
2.8
2,230
3.1
1,818
3.0
1.2
2.1
1.4
357
0.6
421
1,180
0.7
1.9
127
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Table of Comprehensive Income
Growth
2015 -
2014
(%)
Years ended December 31,
2016
2015
(Rp
billion)
(US$
million)
%
(Rp
billion)
%
2014
(Rp
billion)
%
Cost of SIM cards and vouchers
40.6
624
46
0.8
444
0.6
610
1.0
Vehicles rental and supporting
facilities
Tower Rent
Insurance
Others
Personnel Expenses
Salaries and related benefits
Vacation pay, incentives and other
benefits
Pension benefit cost
Early Retirement Program
LSA Expense
Post employment health care
benefits cost
Other Employee benefit
Other Post Employee benefit
Others
Interconnection Expenses
Marketing Expenses
General and Administrative Expenses
General and Administrative
Expenses
Provision for impairment of
receivables
Training, education and
recruitment
Collection expenses
Travelling
Professional fees
Meeting
Social contribution
Others
Other expenses
Lost on foreign exchange-net
Other expenses
Other Income
Operating Profit
Finance Income
Finance Costs
Share of loss of associated
companies
Profit Before Income Tax
Income Tax (Expense) Benefit
Profit for the Year
Other comprehensive income
(expenses) - net
24.0
367
27
0.5
296
0.4
272
0.4
(50.2)
(17.9)
22.9
14.6
25.3
322
256
161
13,612
7,122
24
19
13
1,010
529
0.4
0.3
0.2
17.5
9.2
646
312
131
11,874
5,684
0.9
0.4
0.2
16.7
7.9
1,065
335
438
9,787
5,076
1.7
0.5
0.7
15.9
8.2
(7.8)
4,219
312
5.4
4,575
6.4
3,504
5.7
147.3
(8.0)
56.0
1,068
628
237
(24.7)
163
54.7
2.1
40.6
(10.3)
26.2
9.7
82
48
45
3,218
4,132
4,610
79
47
18
12
6
4
3
239
307
342
1.4
0.8
0.3
0.1
0.1
0.1
0.1
4.1
5.3
5.9
432
683
152
0.6
1.0
0.2
654
-
1.1
-
115
0.2
216
0.3
248
0.4
53
47
32
3,586
3,275
4,204
0.1
0.1
0.0
5.0
4.6
5.8
56
48
86
4,893
3,092
3,963
0.1
0.1
0.1
7.9
5.0
6.4
57.6
1,626
121
2.1
1,032
1.4
967
1.6
(26.4)
743
55
1.0
1,010
1.4
784
1.3
1.4
399
30
0.5
393
0.5
528
0.9
0.6
0.6
0.4
0.3
0.2
0.7
0.7
0.0
0.6
(58.7)
25.8
40.2
27.2
15.6
(9.3)
28.4
13.0
28.8
152
436
594
207
134
319
2,521
52
2,469
(50.0)
750
0.2
0.6
0.8
0.3
0.2
0.4
3.2
0.1
3.2
11
32
44
15
10
24
187
4
183
56
20.9
39,195
2,909
22.0
1,716
127
13.3
(2,810)
(209)
4500.0
88
7
21.8
38,189
12.4
(9,017)
25.1
29,172
2,835
(669)
2,165
(432.7)
(2,099)
(156)
368
347
424
163
116
351
1,963
46
1,917
1,500
32,418
1,407
(2,481)
(2)
31,342
(8,025)
23,317
631
0.5
0.5
0.6
0.2
0.2
0.5
2.8
0.1
2.7
369
355
266
162
96
436
410
14
396
1,074
29,206
1,238
(1,814)
(17)
28,613
(7,339)
21,274
767
128
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Table of Comprehensive Income
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
Netl comprehensive income for the
year attributable to owners of the
parent company
Net comprehensive income for the
year attributable to non-controlling
interest
Growth
2015 -
2014
(%)
Years ended December 31,
2016
2015
(Rp
billion)
(US$
million)
%
(Rp
billion)
%
2014
(Rp
billion)
%
13.0
27,073
2,009
23,948
22,041
24.9
19,352
1,436
15,489
14,471
25.5
9,820
729
7,828
6,803
7.4
17,331
1,286
16,130
15,296
24.6
9,742
723
7,818
6,745
129
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Profit and Loss Comparison
Composition of Revenues and Composition of Expenses in 2016, 2015, and 2014
Composition of Revenues 2016
Composition of Expenses 2016
7,542 (6.5%)
1,444 (1.4%)
5,728 (4.9%)
38,497 (33.1%)
3,218 (4.1%)
4,610 (5.9%)
4,151 (3.6%)
Cellular
Fixed Line
Data, Internet and IT Service
Interconnection
Network
Other Telecommunications
Services
58,971 (50.6%)
31,263 (40.1%)
13,612 (17.5%)
Operations and Maintenance
Depreciation and Amortization
Personel
Interconnection
Marketing
General and Administrative
Other
18,532 (23.8%)
4,132 (5.3%)
2,521 (3.2%)
Composition of Revenues 2015
Composition of Expenses 2015
1,231 (1.2%)
4,290 (4.2%)
4,011 (4.0%)
37,285 (36.3%)
4,204 (5.8%)
3,586 (5.0%)
3,275 (4.6%)
1,963 (3.2%)
28,116 (39.2%)
Cellular
Fixed Line
Data, Internet and IT Service
Interconnection
Network
Other Telecommunications
Services
Operations and Maintenance
Depreciation and Amortization
Personel
Interconnection
Marketing
General and Administrative
Other
47,820 (46.6%)
7,833 (7.7%)
11,874 (16.7%)
18,534 (25.9%)
Composition of Revenues 2014
1,280 (1.4%)
4,708 (5.2%)
3,175 (3.6%)
Composition of Expenses 2014
(Restated)
3,963 (6.4%)
34,290 (38.2%)
3,092 (5.0%)
4,893 (7.9%)
410 (0.7%)
22,288 (36.2%)
Cellular
Fixed Line
Data, Internet and IT Service
Interconnection
Network
Other Telecommunications
Services
Operations and Maintenance
Depreciation and Amortization
Personel
Interconnection
Marketing
General and Administrative
Other
37,808 (42.2%)
8,435 (9.4%)
9,787 (15.9%)
17,131 (27.8%)
130
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Year ended December 31, 2016 compared to
year ended December 31, 2015
1. Revenues
Total revenues increased by Rp13,863 billion, or 13.5%,
from Rp102,470 billion in 2015 to Rp116,333 billion
(US$$8,635 million) in 2016. The increase in revenues
in 2016 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.
a. Cellular Telephone Revenues
Cellular telephone revenues contributes 33.1% of
our consolidated income as of 31 December 2016.
Cellular telephone revenues increase by Rp1,212
billion, or 3.3%, from Rp37,285 billion in 2015 to
Rp38,497 billion (US$2,857 million) in 2016. This
increase was due to an increase in usage charges
by Rp1,385 billion or 3.8% due to an increase in
Telkomsel subscribers from 152.6 million to 173.9
million.
This increase was offset by an decrease in monthly
subscription charges by Rp173 billion, or 40.0%.
b. Fixed Lines Revenues
Fixed lines revenues decreased by Rp291 billion, or
3.7%, from Rp7,833 billion in 2015 to Rp7,542 billion
(US$561 million) in 2016. The decrease in fixed lines
revenues was primarily due to decrease in usage
charges by Rp788 billion, or 17.0% from Rp4,635
billion in 2015 to Rp3,847 billion in 2016.
This decrease was due to an increase in monthly
subscription amounted to Rp490 billion, or 17.4%
due to the success of IndiHome Triple Play bundling
program implementation.
c. Data,
Internet and
Information Technology
Services Revenues
Our data, internet and information technology service
revenues contributed 50.6% of our consolidated
revenues as of December 31, 2016, compared to
46.6% as of December 31, 2015. The increase of data,
internet and information technology service revenues
amounted to Rp11,151 billion, or 23.3%, from Rp47,820
billion in 2015 to Rp58,971 billion (US$4,377 million) in
2016 was due to:
• An increase in data cellular and internet revenues
by Rp8.643 billion, or 43.9% due to a growth
in mobile broadband usage from 43.8 million
subscribers in 2015 to 60 million subscribers in
2016 related to high adoption of smartphone
(3G/4G);
• An increase in Pay TV income by Rp965 billion, or
166.1% due to an increased in UseeTV subscribers;
• An increase in SMS Revenues increased by
Rp848 billion, or 5.6%, driven from successful
implementation of cluster-based pricing;
• An increase in communication internet revenue
by Rp766 billion, or 6.2% related to an increased
of Fixed Broadband subcribers growth from 4.0
million to 4.3 million, which include IndiHome
subscribers.
This increase was offset by decrease in other data
and internet revenues by Rp71 billion, or 52.5% from
Rp135 billion in 2015 to Rp64 billion in 2016.
Data, internet and information technology services
revenues, excluding SMS revenues, grew by 31.5% or
Rp10,303 billion, mainly driven by healthy growth in
mobile broadband. This revenues contributed 37.0%
of total revenues in 2016, increased compared to
contribution in 2015 of 31.9%.
d. Interconnection Revenues
Interconnection revenues comprised interconnection
revenues from our fixed line network and interconnection
revenues from Telkomsel’s mobile cellular network.
Including incoming international long-distance revenues
from our IDD service (TIC-007).
Interconnection revenues decreased by Rp139
billion, or 3.2% from Rp4,290 billion in 2015 to
Rp4,151 billion (US$308 million) in 2016.
e. Network Revenues
Network revenues increased by Rp213 billion, or
17.3%, from Rp1,231 billion in 2015 to Rp1,444 billion
(US$107 million) in 2016 primarily due to a decrease
in leased line amounted and an increase in number
of leased transponder satellite from 4,648 million
MHz to 6,801 million MHz.
f. Other Telecommunications Services Revenues
In 2016, revenues from other telecommunications
service increased by Rp1,717 billion, or 42.8%, from
Rp4,011 billion in 2015 to Rp5,728 billion (US$425
million) in 2016. The increase was primarily due to:
• An increase in other revenues by Rp1,229 billion,
or 216.8% due to an increase in e-payment and
manage service revenues;
• An increase in e-payment revenues by Rp298
billion or 236.8%;
• An increase in e-health by Rp223 billion, or
116.0%.
131
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS g. Other Income
This increase was offset by:
Other income decreased by Rp750 billion, from
• A decrease in employees insentives expenses
Rp1,500 billion in 2015 to Rp750 billion (US$56
amounted Rp356 billion, or 7.8%;
million) in 2016.
2. Expenses
Total expenses increased by Rp6,336 billion, or 8.9%,
from Rp71,552 billion in 2015 to Rp77,888 billion
(US$5,781 million) in 2016.
a. Operations, Maintenance and Telecommunication
Service Expenses
Operations, maintenance and telecommunication
service expenses contributed 40.1% from the total of
company’s expenses. Operations, maintenance and
telecommunication service expenses increased by
Rp3,147 billion, or 11.2%, from Rp28,116 billion in 2015
to Rp31,263 billion (US$2,320 million) in 2016. This
increase was primarily attributable to the following:
• An increase in operations, maintenance and
telecommunication service expenses by Rp1,918
billion, or 12.7%, due to an increase of expenses
in line with network maintenance to improve our
cellular and IndiHome business performance;
• An increase in leased lines and CPE amounted
Rp665 billion, or 34.8% used for operational and
maintenance of leased lines;
• An increase in informatics technology services
expenses by Rp681 billion, or 77.2%;
• An increase in SIM card sales expenses and
voucher by Rp180 billion, or 40.6%;
d. Interconnection Expense
Interconnection expense decreased by Rp368
billion, or 10.3%, from Rp3,586 billion in 2015 to
Rp3,218 billion (US$239 million) in 2016 in line with
decrease in interconnection revenues.
e. Marketing Expense
Marketing expenses increased by Rp857 billion,
or 26.2%, from Rp3,275 billion in 2015 to Rp4,132
billion (US$307 million) in 2016. This increase was
primarily due to an increased promotion of 4G LTE
and IndiHome Triple Play.
f. General and Administrative Expenses
General and administrative expenses increased by
Rp406 billion, or 9.7%, from Rp4,204 billion in 2015
to Rp4,610 billion (US$342 million) in 2016 primarily
due to:
• An
increase
in general and administrative
expenses amounted to Rp594 billion, or 57.6%;
• An increase in professional service expenses
amounted to Rp170 billion, or 40.2%;
This increase was offset by::
• A decrease in provision for doubtful impairment
of receivables by Rp267 billion, or 26.4%;
• A decrease in collection expenses amounted to
This increase was offset by a decrease in tower leased
Rp216 billion, or 58.7%.
amounted to Rp324 billion, or 50.2%;
b. Depreciation and Amortization Expenses
Depreciation and amortization expenses decreased
by Rp2 billion, or 0%, from Rp18,534 billion in 2015
to Rp18,532 billion (US$1,376 million) in 2016.
c. Personnel Expenses
Personnel expenses contributed 17.5% from our total
expenses. This expense increases by Rp1,738 billion,
or 14.6%, from Rp11,874 billion in 2015 to Rp13,612
g. Gain (loss) on Foreign Exchange – net
Loss on foreign exchange – net increased by Rp6
billion, from Rp46 billion in 2015 to Rp52 billion
(US$4 million) in 2016. .
h. Other Expenses
Other expenses increased by Rp552 billion, from
Rp1,917 billion in 2015 to Rp2,469 billion (US$183
million) in 2016.
billion (US$1,010 million) in 2016. This increase was
3. Operating Profit and Operating Profit Margin
driven by:
As a result of the foregoing, operating profit increased
• An
increase
in employees’ salary expenses
by Rp6,777 billion, or 20.9%, from Rp32,418 billion in
amounted to Rp1,438 billion, or 25.3%;
2015 to Rp39,195 billion (US$2,909 million) in 2016.
• An
increase
in net periodic pension costs
Operating profit margin increased from 31.6% in 2015
amounted to Rp636 billion, or 147.3%;
to 33.7% in 2016.
132
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 4. Profit before Income Tax and Pre-Tax Margin
As a result of the foregoing, profit before income tax
increased by Rp6,847 billion, or 21.8%, from Rp31,342
billion in 2015 to Rp38,189 billion (US$2,835 million) in
2016. Pre-tax margin increased from 30.6% in 2015 to
32.8% in 2016.
5. Income Tax Expense
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 in
2015. The increase in revenues in 2015 was due to the
increase in data, internet and information technology
Income tax expense increased by Rp992 billion, or
service revenues, cellular telephone revenues, and
12.4%, from Rp8,025 billion in 2015 to Rp9,017 billion
(US$669 million) in 2016, following the increase in
others telecomunication services revenues.
a. Cellular Telephone Revenues
profit before income tax.
6. Other Comprehensive Income
In 2016, other comprehensive income amounted to
Rp2,099 billion (US$156 million) due to an actuarial
losses amounted to Rp2.058 billion. In the previous
year, Telkom recorded other comprehensive income in
the amount of Rp631 billion.
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 Rp3,863 billion, or 24.9%, from
Rp15,489 billion in 2015 to Rp19,352 billion in 2016.
8. Profit for the Year Attributable to Non-
controlling Interest
Profit for the year attributable to non-controlling
interest increased by Rp1,992 billion, or 25.5%, from
Rp7,828 billion in 2015 to Rp9,820 billion (US$729
million) in 2016.
9. Net Comprehensive Income for the Year
Net Comprehensive income for the year increased by
Rp3,125 billion, or 13.0%, from Rp23,948 billion in 2015
to Rp27,073 billion (US$2,009 million) in 2016.
10.Net Income per Share
Net income per share increased by Rp38, or 24.3%,
from Rp157.77 in 2015 to Rp196.19 in 2016.
Cellular telephone revenues contributed 36.4%
of our consolidated revenue for the year ended
December 31, 2015. This revenues increased by
Rp2,995 billion, or 8.7%, from Rp34,290 billion in
2014 to Rp37,825 billion in 2015 due to an increase
in usage charges increased by Rp3,130 billion, or
9.3%, from Rp33,723 billion in 2014 to Rp36,853
billion in 2015 due to an increase in both our prepaid
and postpaid subscriber
This increase was offset by a decreased of monthly
subscription charges by Rp135 billion, or 23.8%,
from Rp567 billion in 2014 to Rp432 billion in 2015.
b. Fixed Lines Revenues
Fixed lines revenues decreased by Rp602 billion, or
7.1%, from Rp8,435 billion in 2014 to Rp7,833 billion
in 2015. The decrease in fixed lines revenues was
due to decrease in usage charges of Rp712 billion, or
13.3%, due to a decrease in local and domestic long
distance usage. The decrease mainly contributed by
Flexi termination.
The decreased was offset by an increase in monthly
subscription amounted to Rp124 billion, or 4.6%.
c. Data, Internet and Information Technology
Services Revenues
Our data, internet and information technology
service
revenues contributed 46.7% of our
consolidated revenues as of December 31, 2015,
compared to 42.2% for the year ended December
31, 2014. This revenues increased by Rp10,012 billion,
or 26.5%, from Rp37,808 billion in 2014 to Rp47,820
billion in 2015 due to:
133
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS • An increase in revenue of data cellular internet
This increase was offset by a decrease in other
by Rp6,102 billion, or 45.0% due to a growth
revenues by Rp429 billion, or 43.1%.
in mobile broadband usage from 31.2 million
subscribers in 2014 to 43.8 million subscribers
g. Other Income
in 2015 related to high adoption of smartphone
Other income increased by Rp426 billion, from
(3G/4G);
Rp1,074 billion in 2014 to Rp1,500 billion in 2015.
• An
increase
in revenues of communication
internet by Rp2,320 billion, or 23.2%, which was
2. Expenses
driven by an increase in IndiHome subscribers;
• An increase in revenue of SMS by Rp1,098 billion,
or 7.8% driven from successful implementation of
cluster-based pricing .
d. Interconnection Revenues
Interconnection
revenues
comprised
interconnection revenues from our fixed
line
network and
interconnection
revenues
from
Telkomsel’s mobile cellular network,
including
international long-distance revenues from our IDD
service (TIC-007).
Interconnection revenues decreased by Rp418
billion, or 8.9%, from Rp4,708 billion in 2014 to
Rp4,290 billion in 2015 primarily due to a decrease
in domestic interconnection by Rp632 billion, or
21.7%. This decrease was offset by an increase in
international interconnection revenues by Rp214
billion, or 11.9%.
e. Network Revenues
Network revenues decreased by Rp49 billion, or
3.8%, from Rp1,280 billion in 2014 to Rp1,231 billion
in 2015 primarily due to an decrease in our satellite
transponder lease revenue by Rp158 billion, or
23.6%, from Rp670 billion in 2014 to Rp512 billion in
2015, and was partly offset primarily by an increase
in leased line amounted to Rp109 billion, or 17.9%.
f. Other Telecommunications Services Revenues
In 2015, revenues from other telecommunications
service increased by Rp836 billion, or 26.3%, from
Rp3,175 billion in 2014 to Rp4,011 billion in 2015. The
increase was primarily due to:
Total expenses increased by Rp9,988 billion, or 16.2%,
from Rp61,564 billion in 2014 to Rp71,552 billion in
2015. For futher explaination as shown below:
a. Operations, Maintenance and Telecommunication
Service Expenses
Operations, maintenance and telecommunication
service expenses increased by Rp5,828 billion, or
26.1%, from Rp22,288 billion in 2014 to Rp28,116
billion in 2015 which was primarily attributable to
the following:
• An increase in operations and maintenance
increase by Rp3,617 billion, or 31.4%, due to an
increase in expenses associated with network
maintenance to improve our mobile cellular and
IndiHome business performance;
• An increase in cost of handset sales increased
by Rp1,072 billion, or 254.6% due to increase
terminal bundling program;
• An increase in leased lines and CPE increased
by Rp840 billion, or 78.3%, which was used for
operation and maintenance of leased lines.
This increased were offset by
• A decreased in tower leased by Rp419 billion, or
39.3%;
• A decreased in other expenses by Rp307 billion,
or 70.1%.
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 in 2015, primarily due to an increase in
property, plan and equipment to improve our service
to customers and accelerate fixed wireless business
assets, fixed wireless assets has been fully depreciated
• An increase in handset sales by Rp934 billion, or
amounted to Rp545 billion.
160.5%;
• An increase in call centre revenues by Rp222
billion, or 49.8%
134
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS c. Personnel Expenses
Personnel expenses increased by Rp2,087 billion,
or 21.3%, from Rp9,787 billion in 2014 to Rp11,874
billion in 2015, due to
• An increased in employees incentive expenses by
Rp1,071 billion, or 30.6%, in line with company’s
performance;
• Expenses in early retirement program by Rp683
billion;
• An increased in salaries and related benefits by
Rp608 billion, or 12.0%.
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 in 2015. Operating profit
margin decreased from 32.6% in 2014 to 31.6% 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 in 2015. Pre-tax
margin decreased from 31.9% in 2014 to 30.6% in 2015.
d. Interconnection Expense
5. Income Tax Expense
Interconnection expense decreased by Rp1,307
billion, or 26.7%, from Rp4,893 billion in 2014 to
Rp3,586 billion in 2015 primarily due to a decrease
in domestic interconnection expense by Rp1,288
billion, or 35.4% and international interconnection
expense by Rp19 billion, or 1.5% in result of inter
operator discount tariff.
e. Marketing Expense
Marketing expenses increased by Rp183 billion,
or 5.9%, from Rp3,092 billion in 2014 to Rp3,275
billion in 2015 due to an increase in advertising and
promotion expenses by Rp142 billion, or 5.9%, due
to promotion of 4G LTE and IndiHome Triple Play.
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 in 2015 primarily due to an increase
in provision for doubtful impairment of receivables
by Rp226 billion, or 28.8%.
Income tax expense increased by Rp686 billion, or 9.3%,
from Rp7,339 billion in 2014 to Rp8,025 billion in 2015, in
line with the increase in 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 in 2015 was offset by a decrease 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
Rp14,471 billion in 2014 to Rp15,489 billion in 2015.
8. Profit for the Year Attributable to Non-con-
trolling Interest
Profit for the year attributable to non-controlling
interest increased by Rp1,025 billion, or 15.1%, from
Rp6,803 billion in 2014 to Rp7,828 billion in 2015.
g. Gain (loss) on Foreign Exchange – net
Loss on foreign exchange - net increased by Rp32
billion, from Rp14 billion in 2014 to Rp46 billion in
9. Net Comprehensive Income for the Year
Net Comprehensive income for the year increased by
Rp1,907 billion, or 8.7%, from Rp22,041 billion in 2014
2015.
h. Other Expenses
to Rp23,948 billion in 2015.
10.Net Income per Share
Other expenses increased by Rp1,521 billion, from
Rp396 billion in 2014 to Rp1,917 billion in 2015.
Net income per share increased by Rp9.64, or 6.5%,
from Rp148.13 in 2014 to Rp157.77 in 2015.
135
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
CASHFLOW OVERVIEW
The following table presents the information in line with corporate’s consolidated cash flow, similar with what have been
expressed in Consolidated Financial Report
Growth
As of Desember 31,
Cash Flow Table
2016-2015
2016
2015
2014
Net Cash
provided by operating activities
used in investing activities
used in financing activities
(%)
(Rp billion)
(US$ million)
(Rp billion)
(Rp billion)
8.2
0.5
47,231
3,506
43,669
37,736
(27,557)
(2,046)
(27,421)
(24,748)
179.5
(17,905)
(1,329)
(6,407)
(10,083)
Net increase in cash and cash equivalents
(82.0)
1,769
Effect of exchange rate changes on cash and cash
equivalents
(119.7)
(119)
131
(8)
9,841
2,905
604
71
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
59.1
5.9
28,117
2,087
17,672
29,767
2,210
28,117
14,696
17,672
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Cashflow Comparison
Composition of Cash Receipt and Cash Disbursement year in 2016, 2015 and 2014
Composition of Cash Receipt 2016
Composition of Cash Disbursement 2016
10,921 (8.2%)
3,007 (2.3%)
28,826 (22.1%)
Operating
Investing
Financing
118,326 (89.5%)
30,564(23.4%)
Operating
Investing
Financing
71,095 (54.5%)
Composition of Cash Receipt 2015
Composition of Cash Disbursement 2015
20,634 (16.6%)
906 (0.7%)
27,041 (23.6%)
Operating
Investing
Financing
Operating
Investing
Financing
102,663 (82.7%)
28,327 (24.8%)
58,994 (51.6%)
Composition of Cash Receipt 2014
Composition of Cash Disbursement 2014
13,069 (11.8%)
6,912 (6.3%)
23,152(21.5%)
Operating
Investing
Financing
Operating
Investing
Financing
90,363 (81.9%)
31,660 (29.5%)
52,627 (49.0%)
137
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Year ended December 31, 2016 compared to
year ended December 31, 2015
As of December 31, 2016, total cash and cash equivalent
amounted to Rp29,767 billion, increased by Rp1,650
billion, or 5.9% compared to 2015. Operating activity
accounted for the largest cash receipts Rp118,326 billion,
or 89.5%, followed by financing activity amounted to
Rp10,921 billion, or 8.2% and investing activity amounted
to Rp3,007 billion, or 2.3%. In total, cash receipts increased
by Rp8,051 billion, or 6.5% compared to 2015.
The majority of cash used for operating activities
amounted to Rp71,095 billion, or 54.5% investment
activities amounted to Rp30,564 billion, or 23.4% and
financing activities amounted to Rp28,826 billion, or
22.1%. Compared to 2015, cash disbursement increased
by Rp16,123 billion, or 14.1%.
1. Cash Flows from Operating Activities
In 2016 net cash provided by operating activities was
Rp47,231 billion (US$ 3,506 million) compared to
Rp43,669 billion in 2015.
Cash receipts from operating activities amounted
to Rp118,326 billion, increased by Rp15,663 billion, or
15.3% compared to 2015. The cash receipts came from:
• Cash receipts from customers and other operator of
Rp116,116 billion;
•
Interest income received of Rp1,736 billion;
• Other cash receipts after netted with the other cash
disbursement of Rp474 billion.
Cash receipts from investing activities amounted to
Rp3,007 billion, increased by Rp2,101 billion, or 231.9%
compared to 2015. The cash receipts came from:
• Proceeds from escrow accounts of Rp2,159 billion;
• Proceeds from sale of property and equipment of
Rp765 billion;
• Proceeds from insurance claim of Rp 60 billion.
• Dividends received from associated entities of
Rp23 billion.
Cash disbursements from investing activities amounted
to Rp30,564 billion, increased by Rp2,237 billion, or 7.9%
compared to 2015. Cash disbursements were used for:
• Purchases of property and equipment of Rp26,787
billion;
•
Increases advances for purchases of property and
equipment of Rp1,338 billion;
• Purchases of intangible assets of Rp1,098 billion;
• Placement in time deposits and available-for-sale
financial assets of Rp983 billion;
• Acquisition of non-controlling interest in subsidiary
of Rp138 billion;
• Acquisition of business, net of acquired cash of
Rp137 billion;
• Additional contribution on long-term investments
of Rp43 billion;
•
Increase in other assets of Rp40 billion.
3. Cash Flows from Financing Activities
Net cash flows used in financing activities in 2016 was
Rp17,905 billion (US$ 1,329 million) compared to with
Rp6,407 billion in 2015.
Cash disbursements
from operating activities
amounted to Rp71,095 billion, increased by Rp12,101
billion, or 20.5% compared to 2015. The cash
disbursements were used for:
Cash receipts from financing activities amounted to
Rp10,921 billion, which decreased by Rp9,713 billion, or
47.1% compared to 2015. The cash receipts came from:
• Proceeds from loans and other borrowings of
• Cash disbursements for expenses of Rp42,433
Rp7,479 billion;
billion;
• Proceed from sale of treasury stock of Rp3,259
• Payment for corporate and final income taxes of
billion;
Rp11,304 billion;
• Cash payments for employees of Rp11,207 billion;
• Payments for interest cost of Rp3,455 billion;
• Payment for value added taxes after netted with the
receipt of claim for value added taxes of Rp2,696
billion;
2. Cash Flows from Investing Activities
Net cash flows used in investing activities in 2016
was Rp27,557 billion (US$ 2,045 million) compared to
Rp27,421 billion in 2015, an increase of Rp136 billion or
0.5%.
138
• Capital contribution of non-controlling interests in
subsdiaries of Rp183 billion.
Cash disbursements from financing activities amounted
to Rp28,826 billion, which increased by Rp1,785 billion,
or 6.6% compared to 2015. The cash disbursements
were used for:
• Cash devidends paid to the Company’s stockholders
and to non-controlling stockholders of subsidiaries
of Rp11,213 billion, and Rp7,058 billion.
• Repayment of loans and other borrowings of
Rp10,555 billion.
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
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, increased by Rp10,445
billion, or 59.1% compared to 2014.
• Proceeds from sale of property and equipment of
Rp733 billion;
• Claim for insurance of Rp119 billion;
• Decrease in other assets of Rp36 billion;
• Dividends received from associated company of
Rp18 billion.
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.
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 increased
by Rp6,923 billion, or 6.4%.
1. Cash Flows from Operating Activities
Net cash provided by operating activities in 2015 was
Rp43,669 billion compared to Rp37,736 billion in 2014.
Cash receipts from operating activities amounted to
Rp102,663 billion, increased by Rp12,300 billion, or
13.6% compared to 2014. The cash receipts came from:
• Cash receipts from customers and other operator of
Rp100,702 billion;
•
Interest income received of Rp1,386 billion.
• Other cash receipt after netted with other cash
disbursement of Rp575 billion.
Cash disbursements from operating activities amounted
to Rp58,994 billion, increased by Rp6,367 billion, or
12.1% compared to 2014. The cash disbursements were
used for:
• Cash payments for expenses of Rp35,922 billion;
• Cash payments to employees of Rp10,940 billion;
• Payments for corporate and final income taxes of
Rp9,299 billion.
• Payments for interest costs of Rp2,623 billion.
• Payments for value added taxes after netted with
the receipt of claim for value added taxes of Rp210
billion.
2. Cash Flows from Investing Activities
Net cash flows used in investing activities in 2015 was
Rp27,421 billion compared to Rp24,748 billion in 2014.
Cash receipts from investing activities amounted to
Rp906 billion, decrease by Rp6,006 billion, or 86.9%
compared to 2014. The cash receipts came from:
Cash disbursements from investing activities amounted
to Rp28,327 billion, decrease by Rp3,333 billion, or
10.5% compared to 2014. The cash disbursements were
used for:
• Purchases of property and equipment of Rp26,499
billion;
• Purchases of intangible assets of Rp1,439 billion;
• Placement of time deposit and available-for-sale
financial assets of Rp146 billion;
• Acquisitions of business, net of acquired cash of
Rp114 billion
•
Increase in advances for purchases of property and
equipment of Rp67 billion;
• Additional contribution on long-term investments
of Rp62 billion
3. Cash Flows from Financing Activities
Net cash flows used in financing activities was Rp6,407
billion in 2015 compared to with Rp10,083 billion in
2014.
Cash receipts from financing activities amounted to
Rp20,634 billion, which increased by Rp7,565 billion,
or 57.9% compared to 2014. The cash receipts came
from:
• Proceeds from long-term bank loans amounted to
Rp10,698 billion;
• Proceed from short-term amounted to Rp2,558
billion;
• Proceed from obligation amounted to Rp6,985
billion;
• Proceed from sale of treasury stock amounted to
Rp68 billion;
• capital contribution of non-controlling interests in
subsidiaries of Rp5 billion
Cash disbursements from financing activities amounted
to Rp27,041 billion, which increased by Rp3,889 billion,
or 16.8% compared to 2014. The cash disbursements
were used for:
• Cash deviden paid to the Company’s stockholders
and to non-controlling stockholders of subsidiaries
amounted to Rp8,783 billion and Rp7,831 billion;
• Repayment two step and bank loan amounted
Rp4,749 billion;
• Repayment of short-term amounted to Rp3,987
billion;
• Payment for bonds amounted to Rp1,005 billion.
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Liquidity is key to short-term and long-term solvency. All liquidity ratios presented in these Statements show good
ability of Telkom and its Subsidiary to pay their debts. In general, Telkom’s liquidity in 2016 was better than its liquidity
in 2015. This indicates that Telkom business group has good liquidity and the ability to meet its liabilities.
The sources of liquidity of Telkom and its subsidiary primarily come from the cash inflows and outflows from business
operations, financing and investments. Please refer to section “Liquidity”. For more details on the debts of Telkom and
its Subsidiary, please see notes 16-20 to the Consolidated Financial Statements.
a. Short-term liabilities
Telkom and its subsidiary use and analyze short-term liquidity rations to oversee the current asset adequacy to carry
on the business and meet the current liabilities due. The short-term liquidity ratios of Telkom and its Subsidiary are
presented in current ratio, quick ratio and cash ratio in the following table.
RATIO
2016
2015
2014
Current Ratio
Quick Ratio
Cash Ratio
b. Long-term Liabilities
120.0%
98.4%
78.6%
135.3%
133.8%
87.4%
106.1%
86.2%
63.3%
The long-term liquidity ratios serve as the measuring instrument for Telkom and its Subsidiary to analyze their ability
to meet long-term liabilities. Three ratios are used, which are liability-to-equity ratio, liability-to-earnings ratio and
earnings-to-interest-expense ratio as shown in the following table.
RATIO
2016
2015
Debt To Equity Ratio
Debt To Ebitda
Times Interest Earned Ratio
30.1%
53.4%
21.2x
37.0%
67.3%
20.7x
2014
27.3%
51.3%
25.2x
RECEIVABLES COLLECTABILITY
Collectability rates of Telkom in 2016 is 23.1days with receivables rollover ratio of 15.8. Telkom also created provision
against business receivables value depreciation based on the collective historical rate of value depreciation and credit
history of customers individually in the amount of Rp2.990 billion in 2016 and Rp3.048 billion in 2015. This was done to
anticipate the uncollected parts of business receivables throughout 2016.
In calculating and presenting the due receivables amount, Telkom does not differentiate business receivables of
affiliated party and receivables of third party. The due receivables value of Telkom and subsidiary per December 31,
2016 and 2015 are of Rp3,005 billion and Rp3,430 billion respecteively. Receivables that were not depreciated in value
considered as good rating and collectible. For further details on Company’s receivables, please see Note 5 in the
Consolidated Financial Statement.
Table of Receivables Collectability of Telkom and Subsidiary Year 2014-2016
Ratio
Average collection ratio
Receivables turnover ratio
Average Collection Duration Ratio
2016
2015
2014
23.1
15.8
26.8
13.6
28.5
12.8
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CAPITAL STRUCTURE
Telkom and its subsidiaries have funding resources available to run the company resulting from short-term debt, long-
term debt and equity. The following are tables and diagrams which illustrating the capital structure and composition of
Telkom during the last 3 (three) years.
2016
911 (0.8%)
2015
602 (0.5%)
30.888 (26.6%)
34,010 (31.0%)
Short term Liabilities
Long term Liabilities
Equity
Short term Liabilities
Long term Liabilities
Equity
84,384 (72.6%)
75,136 (68.5%)
2014
1,810 (2.0%)
21,642 (23.7%)
Short term Liabilities
Long term Liabilities
Equity
67,721 (74.3%)
Capital Structure
Telkom capital structure as of December 31, 2016 is described as follows:
Capital Structure
2016
2016
2014
(Rp billion)
(US$ million)
(Rp billion)
(Rp billion)
Short Term
Long Term
Debt
Equity
Total Invested Capital
911
30,888
31,799
84,384
116,183
68
2,293
2,360
6,263
8,624
602
34,010
34,612
75,136
109,748
1,810
21,642
23,452
67,721
91,173
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CAPITAL EXPENDITURE
Management policy on capital structure was drawn based
on qualitative and quantitative approaches, in order to
Types of capital expenditure
In 2016, Telkom has carried out capital expenditure with
determine the optimal funding composition from equity
the purpose to improve the company performance. Capital
and debt. Periodically, Telkom assess its capital structure,
expenditure carried out by Telkom can be categorized as
leverage level and performance of the debt payment as
follows:
the basis of decision for addition or payments of short-
term or long-term debt. If possible, a financing scheme
• Broadband services, comprises of broadband access,
can be renewed with a more efficient funding scheme.
IT, application and content, as well as service node;
• Network infrastructure, comprises of transmission
Telkom also maintains its capital structure well at the
network, metro ethernet and Regional Metro Junction
level it believes will not risk its credit rating, or at least
(“RMJ”), and IP backbone as well as satellite;
equal to its competitors’ credit rating while at the same
• Optimizing legacy, comprises of fixed wired telephone;
time maintains a capital structure to optimize the cost of
and
capital (weighted average cost of capital) as well as tax
• Other supporting capital expenditures
benefits. In 2016, Telkom’s Debt-to-Equity Ratio (“DER”)
was 29.5 and Telkom’s debt service coverage ratio was
4.8 times, indicating the company’s high ability to repay
Purpose of capital expenditure
Telkom has done capital expenditure to strengthen and
the debt. During 2016, the Company has complied with
increase company performance. The purpose of this is to
capital requirements provided by the external parties.
anticipating of data service needs, both mobile segment
For
information of management policy on capital
and fixed segment which grow rapidly.
management, see Note 38 to the Consolidated Financial
Statements.
Amount of capital expenditure
The total capital expenditure of Telkom business group
in 2016 has reached Rp 29,199 billion (US$ 2,167 million),
increased by Rp 2,798 billion or 10.6% compared to capital
expenditure in 2015. Telkomsel as one of subsidiaries of
Telkom, has a total of capital expenditure of Rp 12,564
billion compared to Telkom as holding entity in the
amount of Rp 10,309 billion, while the amount of capital
expenditure from other subsidiaries is in the amount of
Rp 6,326 billion.
The following is the table of Capital Expenditure of Telkom Group Year 2014-2016:
Table of Amount of Our Capital Expenditure
2016
2015
2014
Telkom (parent company)
10,309
765
9,641
8,099
(Rp billion)
(US$ million)
(Rp billion)
(Rp billion)
Years Ended December 31,
Subsidiaries
Telkomsel
Others
Subtotal for subsidiaries
Total for Telkom Group
142
12,564
6,326
18,890
933
470
11,321
5,439
1,402
16,760
29,199
2,167
26,401
13,002
3,560
16,562
24,661
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In the past three years, Telkomsel had the highest position in capital expenditures within Telkom Group. Capital
expenditures in Telkomsel is mainly utilized to build BTS. In 2016, Telkomsel build 25,744 units of BTS, so that by the
end of 2016 Telkomsel had a total of 129,033 BTS, growth by 24.9% from the previous year. Around 61% of the total BTS
were 3G/4G BTS. Besides being used to build BTS, Telkomsel also utilized its capital expenditures to build supporting
infrastructure such as IT.
Meanwhile, to support the backhaul of Telkomsel 3G/4G BTS, Telkom built fiber optic networks that become our
advantage as access to the houses to support fixed broadband services, help traffic off-load, WiFi access points,
broadband services to the enterprise segment, and to support leading supply for Telkom digital business strategy. As a
result, Telkom already has 16.4 million homes-passed by end of 2016 to support the fixed broadband service IndiHome.
Telkom also continued to build fiber optic backbone networks, which in 2016 Telkom has completed submarine cable
project of Sulawesi, Maluku, Papua Cable System (SMPCS) for domestic projects. For international projects, together
with a number of other operators in a consortium, Telkom has completed submarine cable Southeast Asia-Middle East-
Western Europe 5 (SEA-ME-WE 5) with 20,000 km length connecting Dumai, Indonesia, Middle East and Marseille,
France. In addition, other important infrastructure that Telkom built included satellite 3S manufacture, construction
of the tower and the development of data center. The following is the graphic of capital expenditure composition of
Telkom Group in the past three years.
On February 15, 2017, Telkom 3S satellite was successfully launched from Kourou, French Guiana. 3S satellite carries
42 transponders consisting of 24 C-Band transponders, 8 extended C-Band and 6 Ku-Band and 4 extended Ku-
Band. With this satellite, Telkom can increase its capacity and quality to serve customers better, while supporting
equitable distribution of ICT services in remote areas that can be reached by our fiber optic network, as well as reduce
dependency on other satellite operators.
Our subsidiary that engage in the development and supply of towers, Mitratel, throughout 2016 continued its investment
to build towers primarily to support the expansion of our mobile business unit, Telkomsel. At the end of 2016, the total
towers owned Mitratel were 8,695.
Meanwhile, through Telin Singapore, Telkom successfully completed the construction of a world-class data center of
20,000 m2 in Jurong - Singapore. The multi-tier data center that consists of Tier-3 and Tier-4 is targeting the corporate
segment both regionally and globally. Until the end of 2016, Telkom has data center facilities covering a total area of
about 95,000 m2.
Graphic of Capital Expenditure Composition of Telkom Group Year in 2014-2016
6,326 (21.7%)
2016
5,439 (20.6%)
2015
10,309 (35.3%)
Telkom
Telkomsel
Others
12,564 (43.0%)
11,321 (42.9%)
3,560 (14.4%)
2014
8,099 (32.8%)
Telkom
Telkomsel
Others
13,002 (52.7%)
9,641 (36.5%)
Telkom
Telkomsel
Others
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Objectives of material contracts
Telkom and its Subsidiaries have a number of material contracts for the investment in capital goods, particularly for the
procurement and installation of transmission equipment and cable networks. The material contracts include agreements
related to projects performed by Telkom and its Subsidiary as presented in the following tables.
Telkom
Parties To Contract
Contract Date
Agreement
PT Cisco Technologies Indonesia
November 14, 2013
Agreement on Procurement and Installation of WIFI CISCO
Thales Alenia Space France
July 14, 2014
Agreement on Telkom-3 Substitution (T3S) Satellite System
PT Huawei Tech Investment
October 23, 2014
Agreement on Procurement and Installation of Access Point
Indonesia WIFI Platform Huawei
Telkom Malaysia Berhad, Telin, Alcatel-
Lucent Submarine Networks dan NEC
Corporation
January 30, 2015
Agreement on Procurement and Installation of Southeast Asia-
Middle East-Western Europe 5 Cable System (SEA-ME-WE
PT ZTE Indonesia
August 28, 2015
PT Datacomm Diangraha
November 20, 2015
PT Sarana Global Indonesia
December 31, 2015
PT Industri Telekomunikasi Indonesia
December 29, 2015
PT Len Industri (Persero)
December 29, 2015
Agreement on Procurement and Installation of MSAN
Modernization for Acceleration of Platform ZTE Copper Cable
Easing
Agreement on Procurement and Installation of ALU Metro
Ethernet Platform
Agreement on Procurement and Installation of Submarine
Communication Cable Sibolga-Nias, Batam-Tanjung, Balai
Karimun, Larantuka-Kabalahi-Atambua
Agreement on Renewal of Procurement and Installation
Agreement of Copper Cable Network Access Modernization
Through Optimalization in Copper Cable Network Asset with
Trade In/Trade Off Pattern
Agreement on Renewal of Procurement and Installation
Agreement of Copper Cable Network Access Modernization
Through Optimalization in Copper Cable Network Asset with
Trade In/Trade Off Pattern
Space System/Loral, LLC
February 29, 2016
Agreement on Procurement of Tekom 4 Satellite
NEC Corporation
May 12, 2016
Agreement on Procurement and Installation of Indonesia
Global Gateway Submarine Communication SYstem
PT Mastersystem Infotama
October 24, 2016
Agreement on Prcurement of Ekspan IP Backbone 2016
Space Exploration Technologies Corp
November 3, 2016
Agreement on TELKOM 4 Satellite Launching
PT Huawei Tech Investment
November 25, 2016
Agreement on Procurement and Installation of Huawei DWDM
Platform
PT ZTE Indonesia
PT ZTE Indonesia
December 15, 2016
Procurement of ZTE STB Platform
December 15, 2016
Agreement on Procurement of ZTE ONT Retail Platform
PT Sigma Cipta Caraka, PT Graha Sarana
Duta dan PT Huawei Tech Investment
December 29, 2016
Agreement on Procurement of IOC-N
PT Lancs Arche Consumma
December 30, 2016
Procurement and Installation of Reengeenering and Addition
of Coriant DWDM Platform Capacity
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Parties To Contract
Contract Date
Agreement
PT Ericsson Indonesia, Ericsson AB, PT
Nokia Siemens Networks, NSN Oy, dan
Nokia Siemens Network GmbH & Co. KG
April 17, 2008
Agreement on developing 2G and 3G combination network
(Combined 2G and 3G CS Core Network Rollout Agreements)
PT Ericsson Indonesia dan PT Nokia
Siemens Networks
April 17, 2008
Agreement on TSA support for 2G and 3G combination
network (Combined 2G and 3G CS Core Network)
PT Ericsson Indonesia Ericsson AB, PT
Nokia Siemens Networks, NSN Oy, Huawei
International Pte. Ltd., PT Huawei dan PT
ZTE Indonesia
March and June 2009 Agreement on developing 2G BSS and 3G UTRAN Rollout
network (2G BSS and 3G UTRAN Rollout Agreements) as 2G
GSM BSS and 3G UMTS Radio Access Network provider
PT Dimension Data Indonesia dan PT
Huawei
February 3, 2010
Agreement on maintenance and procurement of equipment
and services related to Next Generation Convergence IP RAN
Rollout and Technical Support
Amdocs Software Solutions Limited
Liability Company dan PT Application
Solutions
February 8, 2010
Agreement on Onlince Charging System (OCS) and Service
Control Points (SCP) System Solution Development
PT Application Solutions
February 8, 2010
Agreement on technical support (TSA) to provide technical
support service for OCS and SCP
Amdocs Software Solutions Limited
Liability Company dan PT Application
Solutions
PT Huawei
July 5, 2011
Agreement on developing and extension of Customer
Relationship Management and Contact Center Solutions
March 25, 2013
Agreement on technical support (TSA) to provide Gateway
GPRS Support Node (GGSN) Service Complex
Wipro Limited, Wipro Singapore Pte. Ltd.
dan PT WT Indonesia
April 23, 2013
Agreement on developing and procurement of OSDSS
Solution
PT Ericsson Indonesia
October 22, 2013
Agreement on Procurement of GGSN Service Complex Rollout
PT Dimension Data Indonesia
May 25, 2016
Agreement on maintenance and procurement of equipment
and services related to Next Generation Convergence RAN
Transport Rollout.
GSD
Parties To Contract
Contract Date
Agreement
PT Adhi Karya
November 6, 2012
Agreement Structure And Architectural Services as
Main Contractor Development Projects of
Telkom Building Landmark Tower
Sources of funds for material contracts
The sources of funds utilized to fulfill the above contracts were generated from the company’s internal and external
sources. Historically, the company has good leverage ratios and is able to finance capital expenditures. In 2016,
company’s capital expenditures allocation was adjusted to the company’s business plans. Please refer to the discussion
of “Capital Expenditure”.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Denominated currencies
In addition to the Rupiah, the values of the material contracts are denominated in foreign currencies especially in the U.S.
Dollar and the Japanese Yen. Following is the details of the material contracts based on currency as of December 31, 2016:
Table of Material Commitment based on Currencies
Amounts in Foreign Currencies
(in millions)
Equivalent in Rupiah
(in billions)
Rupiah
US Dollar
Euro
Total
Foreign currency risk mitigation
The use of foreign currencies exposes the Company
to foreign exchange risks. In general, the Company’s
foreign exchange risk exposure is not material. The risk of
increasing foreign exchange rates against the Company’s
liabilities is expected to set off the impacts of exchange
rates on time deposits and receivables
in foreign
currencies set at a minimum of 25% of short-term liabilities
in foreign currencies outstanding. For more details on the
material contracts for the purchase of capital goods and
the foreign exchange risks, please refer to Notes 34 and
37 to the Consolidated Financial Statements
-
341
0.16
7,210
4,600
2
11,812
MACROECONOMY
Global Economy and Geopolitics in 2016
Various events have marked the global geopolitics in 2016,
including the conflict and upheavals in the Middle East,
while in Europe, the United Kingdom held a referendum
to to leave the European Union, (EU) a decision known
as Brexit which poses risk to disrupt the regional bloc,
should other EU countries emulate the move to hold a
referendum to exit the bloc.
In the United States, Donald Trump was elected as
President in the November 2016 election and his victory
could impact other countries due to the changes of
MATERIAL INFORMATION AND FACTS
AFTER ACCOUNTANT REPORTING DATE
policies in the US.
Here is the information and material facts occurring after
the date of the auditor’s report, namely:
a. On January 23, 2017, Telkom access receive tax refunds
on overpaid VAT provisions for the financial period
from May to December 2014 amounted to Rp169,4
billion.
b. On February 15, 2017, the Company has successfully
launched its 9th satellite, Telkom 3S in Kourou, French
Guiana with US$215 million investment which includes
the cost of satellite manufacture, launch services and
insurance
Amidst these historical events, the global economy is
slowing down, influenced by the economic slowdown in
China, the United States and other major countries.
Indonesian Economy
The Indonesian economy performed quite well, recording
5.02% growth despite the sluggish global economy. The
growth was higher compared to 4.88% in the previous
year. Such growth was due to strong consumer spending
and government expenditures on infrastructure. The
inflation rate was stable at 3.02% throughout the year,
showing indication that the Indonesian economy will
continue to grow positively in the future.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
In terms of currency exchange rate, Rupiah has a positive trend strengthening against the US Dollar with an average
exchange rate at Rp13,330 per Dollar. If at the beginning of the year Rupiah was nearly Rp14,000 per Dollar, duirng mid-
year approaching to the end of 2016, it was recorded under Rp13,600 per Dollar and Rp13.473 at closing in the end of
2016. With the Government’s inisiative, tax amnesty program was one of the factors that support the stability and the
strengthening of Rupiah exchange rate.
Exchange Rates on Transaction
i
h
a
p
u
R
14.200.00
14.000.00
13.800.00
13.600.00
13.400.00
13.200.00
13.000.00
21.800.00
4 Jan 2016
16 Mar 2016
30 May 2016
12 Aug 2016
25 Oct 2016
Graphic of Rupiah Exchange Rate Against The US Dollar
Source: bi.go.id
The government’s commmitment to mobilize the economy is also reflected by issuing 14 Economic Policy Packages.
Although the policies’ implementation is far from ideal and effective, it gives hope for the business world. Telkom
as a state-owned enterprise that runs a business in telecommunication industry has a significant interest in the 14th
Economic Policy Package, which lays out the Goverment e-commerce roadmap and target to become the largest
digital economy in Southeast Asia in 2020. The policy package covers various aspects on taxation funding, consumers
protection, education and HR, logistic, communication infrastructure, cyber security, and management implementer
establishment.
The digital economy in Indonesia is potential given there are approximately 133 million internet users in the country.
Smartphone users in Indonesia are growing rapidly and it was expected to reach 150 million people by the end of 2016.
Given this potential, Telkom continuea to prepare itself to realize the Government’s vision to develop the number one digital
economy in Southeast Asia.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS INDONESIA TELECOMMUNICATION
INDUSTRY
Telecommunication Industry as the Generator
for National Economy
Globalization, democratization,
technological
and
innovation, specifically, Information and Communication
Technology (ICT) enables information to flow freely
across borders and time. Currently the role of information
to expand digital access to all parts of Indonesia and
encourage ease of use of digital applications. This will
contribute significantly to the economic development of
Indonesia in the form of the growth of creative industries,
such as fashion, culinary, film, design, architecture
and other industries, needing digital infrastructures to
accelerate its growth. The President believes that there is
a large market potential where this potential will become
the foundation for Indonesia to become the largest digital
is crucial for either government, economy, socio-cultural,
economy country in Southeast Asia.
and defense as well as security purposes. Therefore,
it requires a change in point of view in keeping with
the current global conditions that information and
communication
infrastructure
is no
longer merely
complementary and as enabler, but it has become a driver
of development.
In line with the global trend that places ICT, in this case
specifically, the broadband as the key of development,
Indonesia encourages the development of broadband in
national development to realize the vision of 2025. This step
is taken with due observance to four matters namely the
constitutional mandate, Indonesian transformation vision
of 2025, stages and direction of national development,
as well as efforts to increase Indonesia’s competitiveness
at the global level. Currently the Government pushes
acceleration on the development of broadband through
Ring Palapa project in 51 districts/cities in non-commercial
area. The development has started since 2015 and funded
by KPU Funds and development in 446 other districts/
cities has been conducted by Telkom. As implication
of the importance of ICT in national development, the
telecommunication and information sectors have been
able to contribute 4 (four) percent from the total gross
domestic product (GDP) of Indonesia in 2016 (department
of communication and information technology, 2017). This
contribution is expected to rise to 9%until the upcoming
2020.
The Largest Potential Digital Economy in
ASEAN
In the current digital economy era, President Jokowi aims
Indonesia to become the largest digital economy in South
East Asia by 2020. That target is in line with the drive
for digital access expansion at all levels of the society.
The government through the Ministry of Communication
and Information Technology has built infrastructures by
In line with the promising potential of digital economy
development, Indonesian telecommunication industry
recorded an encouraging growth during 2016 at almost
2 (two) times the GDP growth. Indonesia recorded 364.2
million mobile phone users in year 2016, with the number
of smartphone usersthat continues to grow 10.4% since
2015 to 2016 as well as IT spending recorded at 9%
growth since 2015 to 2016. These indicate that the need
for telecommunication and information access continues
to increase and has become a part of the society’s basic
needs. Telecommunication spending of
Indonesian
society will continue to grow in line with the increasing
consumer spending, which resulted from macroeconomics
conditions that is well maintained by the government.
The increase in telecommunication and information
needs has implicated in the growth of digitalization of
companies, online transactions, digital advertising and
digital media content. In accordance with the government
initiative to declare Indonesia as the largest digital
economy country in Southeast Asia in 2020, one sector
that gets the attention of the government is the financial
sector in relation to financial technology (FinTech).
Telecommunication industry is an industry that must
be adaptable to any scale of technology movement,
this is required by the relevant stakeholders to support
the Indonesian government’s aspiration to become the
largest digital economy country in Southeast Asia.
Industry Competition
Telkom Group has comprehensive products and services
including connectivity, information technology and digital
media services referred as TIME (Telecommunication,
Information, Media and Edutainment). Each group of
portfolio has its own characteristics so the depiction of
the competition situation is divided according to the
developing the Palapa Ring satellite, which is expected
following grouping:
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 1. Mobile Business
Indonesian telecommunication industry, specifically the
Fixed broadband customers are projected to grow
by 18.3% and is expected to increase up to 14 million
mobile segment, has a relatively healthy competition,
customers in year 2020, but the penetration will still
indicated with a rational pricing strategy condition.
remain under 6.0%. Efforts from the private sector and the
This occurs as a positive implication of the industrial
government in increasing the number of fiber connections
consolidation nthat happened several years ago and
is the driving force for the broadband sector. Competition
so that the market players would focus in improving a
in the fixed broadband arena also increases with the entry
reliable customer experience. SIM card penetration in
of ISP (Internet Service Provider based in Singapore,
Indonesian mobile industry is quite high exceeding 100%,
MyRepublic, in July 2015. Several strategies carried
which results in a more challenging penetration growth.
out by fixed broadband operators in facing increasing
Mobile market penetration until the end of December
competition among others are making bundling service,
2016 reaches 364.3 million users dominated by prepaid
increasing broadband frequency, and targeting high value
customers. With an increasingly greater data service
customers.
proportion per customer, then the ARPU trend tends to
decrease, and the operators will strive to maintain ARPU
in a reasonable rate, among others by migrating prepaid
3. International Traffic and Interconnection
Level of competition in traditional international traffic SLI
customers to postpaid and offering a higher service value.
services (non-VoIP) in Indonesia specifically with Indosat.
4G network expansion is also intensively carried out by
SLI also faces competition with VoIP and other internet
operators, and in line with an encouraging smartphone
sales at the end of 2016 the total 3G/4G customer is
based voice services such as Skype, Line and WhatsApp.
Telkom has long launched VoIP services and offered
predicted to reach 144.6 million.
cost savings to customers. A number of companies also
provide licensed VoIP services in Indonesia, on the other
Telkomsel, Indosat Ooredoo, and XL Axiata are the three
hand there are also unlicensed operators. VoIP Operators
operators dominating the Indonesian mobile market with
competes mainly based on price and service quality by
a total market share of more than 84%, despite still having
providing budget call and other products intended for
to face an increasing competition from smaller operators
price sensitive users. Currently Telkom offers main VoIP
such as Hutch, Smartfren, and others. Telkomsel currently
service Telkom Global-01017 and Telkom Save as its low-
remains to be the market leader with the most extensive
cost alternative. Telkom Save offers discounts for certain
coverage advantage, while XL and Indosat Ooredoo
countries with the largest traffics for calls from Indonesia,
continue to compete by offering more competitive price
whereas for other countries Telkom offers regular VoIP
and speed of data network. The challenges of Telkomsel
tariffs.
in facing the development of mobile broadband services
specifically on the availability of frequency spectrum,
where the ratio of number of customer per MHz of
4. Satellite and Network Infrastructure Business
Satellite industry in Indonesia is one of the industries with
Telkomsel is at the moment far higher compared to XL
the highest competition level in Southeast Asia region.
and Indosat Ooredoo.
This may be seen in the market structure shift since 2003
from monopoly to oligopoly. One of the reason of this
2. Voice & Broadband Fixed Business
Indonesia, as well as other operators in the region, has a
structure shift is because the Government of Indonesia
neglected in strictly regulating the satellite industry in
market fixed-voice that is decreasing with the presence
Indonesia. Despite the Ministerial Regulation number
of a more popular substitute service, and is predicted
37/P/M.KOMINFO/12/2006 dated 6 December 2006
to continue this way. Currently there are several fixed
issued by the Minister of Communication and Information
network providers in Indonesia, although not all, are active
Technology has given an entry barrier for foreign satellite
in providing services. A large number of these providers
operators, but the “open-sky” policy applicable in reality
operate closed private networks
increases the competition between Indonesian satellite
operator with foreign satellite operators. Other causes
of this market structure shift is the domestic operator
capacity limitations, that is unable to take advantage of
the vast growth of market demand in Indonesia.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS At the moment the need for satellite in Indonesia may be
and
increasing smartphone penetration opens the
categorized as undersupply, so the presence of external
opportunity for financial service
industry
including
satellite servicesoffers a promising business opportunity.
telecommunication, such as services of lending, crowd
Based on data of 2015, there is a demand of approximately
funding, payment, remittance, investment management
250 transponders. The inability of Indonesia’s satellite
as well as providing personal financial management
capacity to meet such demand is one of the driving
education services. Currently FinTech startups have
factors for new satellite deployments, namely BRISat with
started emerging and are expected to become a trend
45 transponder and Telkom 3S with 42 transponders.
until the coming 2017. Telecommunication industry is an
industry that must be adaptable to any scale of technology
For tower
infrastructure business, Telkom operates
movement. A number of mobile financial services (MFS)
129,033 BTS all across Indonesia. Through Mitratel,
has been carried out by telecommunication operators,
Telkom rents the room for other operators to place their
such as Dompetku and Dompetku+ by Indosat Ooredoo,
telecommunication tools on those towers. Business
XL Tunai by XL Axiata and T-Cash by Telkomsel, that
competition relating to this tower comes from other
continue to grow each year.
providers and operators such as Tower Bersama,
Protelindo, Solusi Tunas Pratama and several mobile
operators. Aggressive 4G expansion will increase the
tenancy ratio and enables operators to produce revenues
from tower renting.
In January 2016, XL Axiata announces a plan to sell more
than 2,500 of 6,500 telecommunication towers with the
purpose of reducing indebtedness. Indosat also endeavors
to increase operational efficiency through tower sales, in
addition to funding the expansion project.
5. Enterprise and Consumer Digital Business
The vast growth of company, online transaction, digital
advertising and digital media content digitalization has
driven the ICT industry and digital. ICT Market and digital
consumer are opportunities that must be captured as one
of the source of growth and improvement of competitive
advantage. The government has declared Indonesia to be
a country with the largest digital economy in Southeast
Asia in 2020. One sector that gets the attention of the
government is the financial sector in relation to financial
technology (FinTech).
In Indonesia FinTech presents itself as one of the catalyst
in improving financial inclusion. Indonesia has more than
200 million population spread all across the archipelago.
This geographical condition provides its challenges
for traditional banking in reaching communities in rural
Indonesia. As a result, only 20% of the total Indonesian
population have accounts in formal banking. The high
Industrial Challenges in Digital Era
One of the main challenges faced in the telecommunication
industry comes from the over the top (OTT) business
players. Services developed by the OTT directly or
indirectly substitute the telecommunication such as voice
services and SMS, which continue to show declining
trend. Such rate of decline increases with the growth
of smartphone users. This condition occurs not only in
Indonesia, but also in other countries with a relatively high
smartphone penetration. Therefore, telecommunication
operators need to prepare strategies in order to sustain
the sharp rate of revenue decline in the legacy business
through.
On the other hand, signal coverage distribution and data
access also poses a big challenge in the telecommunication
industry that is important todrivie the digital economy
development in Indonesia..
Data access quality for data downloading and uploading
also still have an inequality with the largest average
access quality in Island of Java.
Further, the education to the stakeholders shall also
become a separate challenge
in developing
the
Indonesian digital economy. The Survey from the Center
of Research and Development for the Operation of Post
and Telematics (Puslitbang PPI) in 2015 showed that
farmers and fishermen have a low internet and access
to internet, so they need more further education so they
can enjoy enjoy the convenience and benefits of digital
services.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
3 MAIN PROGRAM IN 2016
Furthermore, we continued
to explore business
development opportunities through inorganic initiatives
Telkom has set a corporate vision of “Be The King of
both domestically and globally in selective, prudent
Digital In The Region”, which means that as a digital telco
and synergy approaches. Inorganic expansion becomes
company, we remain committed to providing an integrated
a necessity given the broadband and digital-based
(end to end) through a variety of digital solutions oriented
telecommunications industry has no longer boundaries
to customer experience excellence. Telkom continued to
between regions (borderless). Telkom continued to
encourage the strengthening of the main pillars of digital
strengthen its footprint in the region and look for
business growth which are broadband connectivity
strategic business opportunities that can add value to the
services, digital mediation platform and digital services
Company as well as finding a profitable business model.
development in order to create sustainable growth in
To that end, we continued to build digital competence
order to achieve the company’s Vision.
of international standard in order to have a competitive
In 2016, the Company has set three main programs which
managed to get a license application services from the
are continuation of the previous year, with sharpening on
Ministry of Telecommunications Myanmar as well as a
each program. The three programs are the Leading Mobile
license from the US government, which allows Telkom to
Digital Business, Drive Digital Home and Enterprise and
run business in ICT services to corporate customers. With
Smart International Business Growth.
these licenses, we expect Telkom presence in the region
edge to work on a wider global market. In 2016, Telkom
to increase in the future.
Telkom continued its efforts to strengthen its leading
position in the cellular industry in Indonesia. Through its
Telkom also established a subsidiary in the form of
subsidiaries, namely Telkomsel, we consistently continued
corporate venture capital, Metra Digital Innovation
to invest in developing an integrated network to advance
(MDI), which play a role in exploration and investment
coverage, capacity and capability for mobile broadband
in potential start-up companies. MDI strategy is to drive
services to optimize mobile business core. Telkomsel
Telkom for long-term value creation through investments
also accelerated digital mobile business through a range
in companies that have a solid business model and to
of innovative digital services, such as digital lifestyle
develop synergies with our business, considering Telkom
(digital music, video and games), mobile payment, mobile
already has the infrastructure, end users and corporate
advertising, as well as more advanced digital services
customers, as well as data.
such as M2M-IoT and big data analytics.
In addition, Telkom continued to drive growth of digital
also undertake other efforts to improve competitiveness
business for Home and Enterprise segments with
and to maintain the company value to remain in the Top-
focus on the development of broadband connectivity
10 digital telcos in Asia Pacific in 2020.
Telkom will continue to drive growth in digital business and
services, digital content services and digital solutions for
enterprise and SMEs. We selectively develop ecosystem-
based digital services such as e-commerce, e-payment,
e-health and e-tourism which we do through synergy and
collaboration with other firms.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS BUSINESS PROSPECT
The Political and Economic Outlook
telecommunication
that
Telkom believes
industry
business prospect is still widely open. However, Telkom is
still aware with the dynamic of international and national
politics and economics that may occur and may negatively
influence the performance of Telkom, especially in short-
term. The economic growth in China and India, which are
main drivers of Asian economy, are projected to slightly
improve in 2017. In the United States, President Donald
Trump political and economic policies still remains to be
seen and reviewed, while we are also remain watchful of
United Kingdom’s ongoing exit from the EU and how they
would impact on the economy. Further, we also need to
monitor the ongoing conflicts in the Middle-East as it has
its effects to oil price fluctuation.
Further, even though World Bank has estimated that the
economic growth in Indonesia will increase to 5,3% in 2017
(worldbank.org, January 2017), Telkom will continuously
scrutinize the change of economic and politic with a
reliable risk management. In the national level, Indonesia
has held the General Election of the Regional Head
(Pilkada) simultaneously in February 2017. The changes
of regional heads following the elections may cause
policy changes that could impact on Telkom’s business
positively or negatively.
The regional heads changes may also cause some new
adjustments at the operational level to seize existing
business opportunities
Digital Economy Prospect
The government has set out Indonesia to be the largest
digital economy country in Southeast Asia in year
2020. The population of Indonesia that is expected
to reach 271 million populations in 2020 (source bps.
go.id) is a large digital economy market. SMEs, which
became the backbone of Indonesia’s economy, has also
shown its potential in playing a role to drive the national
digital economy. With all its integrated infrastructure,
the involvement of Telkom shall have a crucial role in
Digital Lifestyle Opens the Opportunity for
New Products and Services
Business prospect of telecommunication industry also
experiences the friction influenced by digital lifestyle.
The increasing use of smartphone and internet which is
getting higher, has pushed the increase in the demand
of broadband and given the pressure to the legacy
business such as voice, and sms. Therefore, Telkom takes
a strategical step to invest in order to grow the digital
services, either fixed broadband or mobile broadband.
The lifestyle needs of digital services and multimedia
has become the business opportunity of Telkom in the
future. Telkom sought to presents digital services to
meet digital needs and facilitate activities as well as
the lifestyle for its users. We developed digital services
from entertainment at home as well as when in mobility
and interact within the community. IndiHome Triple
Play offer as one of digital service at home which is
a new product integrating the services of IPTV, high
speed internet connection and home telephon. Telkom
expected this kind of digital service will become one
of the contributor for the growth of Telkom in the
future and make Telkom as the key player in Media and
Edutainment business.
Telkom is preparing to build a comprehensive network
infrastructure, in order to play a key role in responding
to changes in the direction broadband and digital-
based
telecommunications services,
including
in
the development of the digital economy. With lower
smartphones prices and increased demand for fixed
broadband services, the availability of ICT infrastructure
will make more Indonesia people who can enjoy a
variety of benefits, especially the opening of economic
opportunities. Telkom also continues to develop the
digital ecosystem to provide more integrated services,
such as e-commerce platform blanja.com as part of the
ecosystem in the digital economy, in order to support
the marketing of MSME products more widely and
easily, Indonesia Tourism Exchange (ITX) to encourage
the growth of the tourism industry, and indigo, which
is an initiative to accelerate the establishment of a
developing digital economy ecosystem and creating
creative industry ecosystem.
new business opportunitiesin Indonesia. Digital Economy
will become part of economic activities, beginning with
product research, product and service design, marketing
and advertising, business operations, until payment
which all are based on digital services. Be that as it may,
entrepreneurial competencies, management skills and
market control remain as important components in the
business world.
Facing Competition and Seize Opportunities
In the digital era, the competition is expected to be
tougher. Not only Telkom competes with other operators
but also over the top (OTT) digital companies that
operate cross-industry. Therefore, Telkom continues to
innovate in improving new digital services internally and
also collaborates with potential digital startups. Telkom
keep investing in building infrastructure to ensure the
best customer experience maintained.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Further, we strive to continue delivering the best digital services in the personal, home, enterprise customer segments.
We provide the best world class digital services through collaborations with the best world partners to strengthen the
key capabilities and establish the competitive advantage of Telkom Group.
COMPARISON BETWEEN TARGETS AND REALIZATIONS
This section presents information of a comparison between the targets in the beginning of the financial year and the
results achieved or performance realization of Telkom 2016.
The strategies of Telkom in 2016 including increasing revenues and capital expenditure to infrastructure development.
Furthermore, digital business acquisitions continued to be conducted in order to improve Telkom’s digital business
portfolio.
Below is the table to illustrate the targets and the realizations of the strategies of Telkom and its subsidiary in 2016.
Telkom Group Targets of Strategies for 2016
Indicator
Revenue growth
EBITDA Margin
Targets of Strategies for 2016
The revenue growth is expected to grow better than market
rate by the end of the year by continued effort in growing
digital business.
EBITDA and margin net income are expected to slightly
decline in line with continued broadband infrastructure
development, both in mobile and fixed line businesses.
Capital expenditure
Capital expenditure of 22-25% of the annual revenue is
allocated for broadband infrastructure:
• Mobile business: 60% - 65%
• Fixed broadband: +/- 25%
• The rest is for other business lines
The realization of Telkom’s performance throughout 2016 was satisfactory, with its triple double digit growth achievement
for revenues, EBITDA, and net income. In 2016, Telkom has realized 13.5% revenue growth, far above the 8.87% industry
average. Data, internet, and IT revenues (digital business) grew 31% and revenues portion from this segment increased
to 37% from 32% from the previous year. Moreover, EBITDA margin in 2016 reached 51.1%. It was 0.9 ppt (percentage
point) higher than 50.2% EBITDA margin in 2015. Meanwhile, the realization of net income margin was excellent at 16.6%
or 1.5 ppt higher than 15.1% in 2015. Telkom realized the Capex by 25% from the revenues throughout 2016, in line with
the 22%-25% target set at the beginning of the year.
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In 2017, Telkom set the target for the revenues to grow above the industry, in order to maintain its domination in celluler
market and expand its foot print in fixed broadband market. EBITDA margin and Net Income margin are estimated to
slightly decline unanimously with the increase of digital business portion and the decrease of revenues portion from
legacy service consists of voice and SMS. Telkom also allocates roughly 23%-25% of its capital expenditure to focus on
building broadband infrastructure both in cellular and fixed line segments.
In general, Telkom Group strategic plan for 2017 may be seen as follows.
Table of Target Strategy of Telkom Group in 2017
Indicators
Revenue growth
EBITDA Margin
Targets for 2017
Revenue growth far above the industry.
EBITDA margin and net income margin are projected to slightly decline in
accordance to broadband infrastructure development, in mobile and fixed
line business, and increase revenues portion from digital business segment
Capital expenditure
Capital expenditure around 23%-25% from revenues
DIVIDEND
Policy on the distribution of dividend must be agreed by the Annual General Meeting of Shareholders (“AGMS”). In each
year for the past five years, Telkom has made payments of dividend to all of its shareholders. The ratio, amount and total
amount of dividend for the financial year of 2016 shall be determined in the 2017 AGMS.
Table of Dividend Payments of Telkom for 2012 -2016
Dividend
Year
Dividend Policy
Table of Dividend Payments of Telkom for 2012 -2016
Date of Dividend
Payment in Cash and/
or Date ofDividend
Distribution in Non-
Cash
Payment Ratio /
Pay out ratio (%) 1
Dividend
Amount paid per
year(Million Rp)
Dividend Amount
per Share (cash
and/or non-cash)
after Stock Split
(Rp)
2011
2012
2013
2014
2015
AGMS, May 11, 2012
June 22, 2012
AGMS, April 19, 2013
June 18, 2013
AGMS, April 4, 2014
May 19, 2014
AGMS, April 17, 2015
May 21, 2015
AGMS, April 22, 2016
May 26, 2016
65
65
70
60
60
7,127,333 2
8,352,597 3
9,943,294 4
8,782,812 5
9,293,184 6
74.21
87.24
102.40
89.46
94.64
The payment ratio shall bethe profit percentage attributable to the owner of holding entity paid to the shareholders as dividends.
1.
2. Consist of cash dividend amounting to Rp6,030,820 million and special cash dividend amounting Rp1,096,513 million.
3. Consist of cash dividend amounting to Rp7,067,582 million and special cash dividend amounting Rp1,285,015 million.
4. Consist of cash dividend amounting to Rp7,812,588 million and special cash dividend amounting Rp2,130,706 million.
5. Consist of cash dividend amounting to Rp7,319,010 million and special cash dividend amounting Rp1,463,802 million.
6. Consist of cash dividend amounting to Rp7,744,304 million and special cash dividend amounting Rp1,548,880 million.
In 2016, we paid an interim cash dividen for 2016 of Rp19,379 per share on December 27, 2016.
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REALIZATION OF PUBLIC OFFERING FUND
MATERIAL INFORMATION
On June 16, 2015, the Company issued the Continuous
Based on the Financial Service Authority Regulation No.31/
Bonds I Telkom Phase I 2015 (Obligasi Berkelanjutan I
POJK.04/2015, as a public company, Telkom is obligated
Telkom Tahap I Tahun 2015) in the amount of Rp7,000
to disclose any material information or significant facts
billion which consist of:
which relevant to and may affect the securities price or
• Rp2,200 billion for Series A, with 7 (seven) years
the decision of investors, prospective investors, or other
tenure;
interested parties on such information.
• Rp2,100 billion for Series B, with 10 (ten) years tenure;
• Rp1,200 billion for Series C, with 15 (fifteen) years
Telkom has identified and declared to have any material
tenure; and
information, among others, in regard to investments,
• Rp1,500 billion for Series D, with 30 (thirty) years
expansion, divestment, merger/consolidation, acquisition,
tenure.
debt/capital restructuring, Affiliated transactions, and
conflict of interest transactions, which happened on the
The rating of the bonds is AAA of Pefindo and secured
2016 financial year as follows:
by all of the Issuer Company’s assets, movable or non-
movable, either existing or those will exist in the future.
1. On 25 May 2016, Telkom Metra acquired 2,000 shares
The underwriters of the bonds are PT Bahana Sekuritas
of Ad Medika from the minority shareholders equal to
(“Bahana”), PT Danareksa Sekuritas, PT Mandiri Sekuritas
and PT Trimegah Sekuritas, with PT Bank Permata Tbk as
25% of the shareholding at the price of Rp138 billion.
2. On June 29, 2016, Sigma purchased 13,770 shares of
the appointed Trustee.
Realization of Public Offering Fund
Amount
(in billion Rupiah)
Public Offering Fund
Public offering cost
Net amount
Realization:
a. Business Development
b. Acquisition
Total realization
Balance
7,000
16
6,984
6,062
922
6,984
0
PT Pojok Celebes Mandiri (“PCM”) (equivalent to 51%
ownership) from Metra amounting to Rp7.8 billion.
3. On 3 November 2016, Telkom established subsidiary
entity namely Jalin Pembayaran Nusantara (Jalin),
having its business in carrying out principal, switching,
clearing and settlement activities.
4. On
10 November 2016, Metranet
increased
its
authorized capital originally from Rp244 billion to
Rp324 billion by issuing 18,800,000 new shares wholly
owned by Telkom.
5. On 14 November 2016, Metranet acquired 4,900,000
shares of Melon (equal to 49% of shareholding) from
SK Planet Co. Ltd. and 300,000 shares of Melon (equal
to 3% of shareholding) from Telkom Metra, each at the
price of US$13,000,000 or equal to Rp170.4 billion
Total funds received by the Company after deduction of
and Rp13.2 billion. From these transactions, Metranet
public offering cost is in the amount of Rp6,984 billion.
acquired 52% shareholding over Melon and the
During the 2016 financial year, there is no change in the
remaining shares are held by Telkom Metra.
plan of the use of public offering proceeds. Cumulatively,
the realization of the use of public offering proceeds up
to the end of financial year of December 31, 2016, is in the
amount of Rp6,984 billion, which used for:
• Business development of Rp6,062 billion, consisting of
business development in Broadband, Backbone, Metro
& Regional Metro Junction (RMJ) and IT Application &
Support.
• Acquisition of Rp922 billion, executed by the Company
or its Subsidiaries.
Therefore, the public offering funds from Sustainable Bond
I Telkom Phase I Of 2015 has been used entirely. Details of
Bonds, see Note 16 to the Consolidated Financial Statements.
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Market Share
In 2016, Telkom Group’s market share by geography was
96.9% of income generated from Indonesia and only 3.1% of
income generated rom international market share. Based
on income perspective, mobile business which Telkomsel
manages and fixed line are still the biggest contributions
with 33.1% and 6.5% contributions respectively. For the
fixed line market share, Telkom currently dominates the
For mobile broadband business, Telkomsel has 60 million
flash customers with 5.9 million which among others,
have migrated to 4G technology. With such amount,
Telkomsel’s market share for mobile broadband has
reached 48%. This sector is expected to keep growing
along with the increase of smartphone users in Indonesia.
Telkom’s newest product, IndiHome, still has a small
market share but it is rapidly growing. After its launch in
2015, Telkom is estimated to have 4.3 million customers
of fixed broadband who are also IndiHome triple play
market with 99% share.
customers.
Through its subsidiary Telkomsel, Telkom competes with
other operators such as Indosat and XL Axiata in mobile
business. Telkomsel still dominates the market share for
mobile business in Java with 22.4% share and outside Java
as well with 77.6% share, while XL Axiata has 11.2% share
Further in 2016, Enterprise segment used 2,524 Gbps
bandwidth in service which we predicted around 65%
from enterprise traffic market share in Indonesia, where
we serve more than 1,300 corporate customers, nearly
300,000 SME customers, and several government
and Indosat has 6.2% share. Hutchison Tri and Smartfren
institutions.
have the remaining 5% share (katadata.co.id, November
11, 2016).
Marketing Strategy
The marketing strategy for Telkom Group’s products and services are correlated with series of development
process of products and services. This starts with market research and evaluation of products and services users for
telecommunication and information. Based on the result, Telkom Group designs the products and services as well
as conducts the market test. Telkom then conducts the go-to-market strategy, which is to plan and to prepare the
production and marketing channel. The next stage is to launch and to market the products and services, to implement
the improvement as well as to provide after sales service.
Below is the diagram of Telkom Group Marketing Strategy.
Market/Product
Asessment
Product Design
User
Assassement
Testing
Go-to-Market
Strategy
Reviewed
Launch and
After Sales
Product
Marketing/
Sales
• Market research
• User requirements
map to
smartphones
• Conjoint sensitivity
assessment
• Product definition
• Product and
package
architecture
• Product, price
and channel
acceptance
• Partnerships/
channel plan
• Internal capability
• UI and IT systems
effectiveness
leverage
• Salesforce
management
• Activation
management
• CRM
• Continuous
improvement
system
Diagram of Telkom Group Marketing Strategy
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Telkom Group has different strategies for promotion and
customer service and they are adjusted in accordance to
the characteristics of segment, products and services as
well as costumer types. Below are the promotion and
customer service strategies, based on CFU (customer
facing unit) in Telkom:
1. CFU Consumer
The “more-for-less” strategy is implemented in CFU
Consumer, especially market IndiHome Triple Play and
dual play products through Fiber-To-The-Home network.
Through this strategy, the customers are offered to obtain
a better benefit with less fee compared to the fee for
individual service.
2. CFU Enterprise
The “go-to-market” strategy
implemented by CFU
Enterprise was conducted through SMART CONNECTED
SOCIETY program which consists of:
• SMART Government Initiative: to collaborate with the
Government to become Strategic ICT Partner by taking
part to make the strategic Government ICT mega deals
a success
• Enterprise CONNECTED Ecosystem: to evolve as the
end to end digital ICT player and to become market
leader in the enterprise ICT solution market.
• SME’s Digital SOCIETY: to create SME ICT market in
Indonesia, to collaborate with SME player, community,
Government and academic institution.
3. CFU Wholesale and International Business
The strategy of “wholesale facilitate retail” on this business
sector is interpreted in the strategy of “3C”, namely:
• Collect traffic through organic to organic (O2O).
• Creating smart pricing.
• Customer relationship improvement.
“Wholesale facilitate retail” is implemented in the domestic
interconnection consisting of termination and transit. The
implemented sale scheme are, among others:
• Fixed bandwidth and burstable bandwidth.
• FTTM (metro-E), which is in the form of backhaul
service for macro tower, BTS hotel and backhaul indoor
building solutions (B-IBS).
• Leased channel (LC) with creative pricing.
• Smart swap scheme.
•
Indefeasible Right of Use (IRU) or the Irrevocable
Utilization Right.
• Bundling service as the part of large business deal.
• Collaborative satellite supply,
in
the
form of
collaboration and consolidation of the availability of
satellite capacity to give a maximum benefit to the
customers.
Wi-Fi wholesale service is one of the service portfolios
of Indonesia Wi-Fi offered through the cooperation with
domestic or international partner, namely OLO, ISP and
roaming partner.
4. CFU Mobile
The marketing strategy for mobile business emphasizes on
the true broadband experience, enriches the smartphone
experience, postpaid privilege experience, engaged youth
experience, trustworthy service experience, and customer
experience. simPATI, Kartu As and LOOP are some of
Telkom’s products managed under CFU Mobile.
The implementation of this strategy on the legacy business
and program data penetration marketing covers some
programs such as SLI 007 special campaign, halo-fit-my-
plan package which was launched in order to increase the
total costumers of kartuHalo, Telkomsel android united
(TAU) program which bundled with smartphone, and
simPATI-go-discover which constitutes the entertainment
package of simPATI.
In addition to the marketing and sales strategy as
mentioned above, Telkom also accelerates the adoption
of 3G/4G equipment to support the use of smartphone
effectively and efficiently.
5. CFU Digital Services
“Go To Market” strategy of CFU Digital Service will focus on
strengthening and increasing Digital Innovation, namely:
• Creating unique digital services with different
experiences from before for digital music service,
video, gaming, e-commerce, and travelling.
• Building Digital Business Model covering a wider market
in order to support Indonesia Digital Economics.
• Providing customer experience innovation through
Digital Theme Park, Experience Center and Digital
Experience in Telkom Group service outlets.
• Combining assets and inventoriy of Telkom Group to
become an insight in increasing Digital Service and
Cutomer Experience.
• Growing Digital Business Portfolio through investments
in Digital Startups until they become a part of
Indonesian Digital Ecosystem.
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Compliance with regulations is a form of implementation of good corporate governance (GCG) in Telkom. In 2016,
Telkom has identified some new regulations in the telecommunication and information industry as well as the
possibility of their impacts upon the operations and financial statements [of Telkom].
Table of Amendments to Legislations in Year 2016
No Laws And Regulations Having
Significant Effect
Effect On Financial Statement
1
Regulation of the Minister of Communications and
• Does not materially affect financial statements
Information Number 4 of 2016 regarding Information
[of the Company];
Security Management System.
On April 11, 2016, the government through Directorate
required to improve the protection to consumers,
General of Legislations of the Ministry of Law and
businessmen, labors, and the society either for
Human Rights enacted Regulation of the Minister of
the safety, security, health or preservation of
Communications and Information Number 4 of 2016
environment, improving trade continuity and
regarding Information Security Management System.
achievinghealthy business competition in a trade.
• Affects the operations of Telkom that are
This ministerial regulation governs the implementation of
Information Security Management System by Electronic
System Developer for Public Services based on Risks
which is performed by corporations such as SOEs. This
regulation governs the categorization of Electronic
Systems which subsequently
triggered Electronic
System Developers including Telkom to implement
Information Security Management System namely SNI
ISO/IEC 270001.
2
Tax Incentive
In December 2015, the Company utilized the
Economic Policy Package Part V in the form of tax
incentive namely the provision of special tariff for
the revaluation of fixed assets as further stipulated
under the Regulation of Minister of Finance (PMK)
No. 191/PMK.010/2015 in conjunction with PMK No.
29/PMK.03/2016. According to the said PMK, the
Company may conduct a revaluation of fix assets
for the purpose of taxation based on the market
value to be appraised by a Public Appraiser Service
Office (KJPP) or appraisal expert having the license
from the Government. The company has conducted
the payment of final income tax in the amount of
Rp750 billion and submit the Letter No. C.Tel. 282/
KU000/COP-I000000/2015 dated 29 December
2015 regarding “the Application to Re-evaluate the
Fixed Assets for the Purpose of Taxation submitted
in 2015 by the Tax Payer that Has Not Conducted
the Revaluation of Fixed Assets “. The company has
submitted the said application letter to the Regional
Office of Directorate General of Tax for the Large Tax
Payer on 30 December 2015.
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No Laws And Regulations Having
Significant Effect
Effect On Financial Statement
With regard to the distribution of company’s
fixed assets, location that is hard to reach, assets
which are in the form of very specific TELKOM’s
production equipment, and a rapid development
of telecommunication technology, TELKOM divided
the completion of appraisal by KJPP in two phases.
The first phase of appraisal has been completed and
the Director General of Tax has issued the Decision
letter of Director General of Tax Number KEP-580/
WPJ.19/2016 dated 10 November 2016 regarding
“the Re-Approval of Fixed Assets Valuation for the
Taxation Purpose To the Application Submitted In
2015 and 2016” with the surplus of revaluation of Rp
Rp7,078 billion” and Income Tax upon the revaluation
in the amount of Rp212 billion so that there will be
an excess of payment from the advance payment
of the Income Tax for Revaluation in the amount of
Rp538 billion. Further in 19 December 2016 TELKOM
submitted a letter “Application for the Revaluation
of Fixed Assets for Taxation Purpose Submitted
In 2016 by the Tax Payer that Has Not Conducted
the Revaluation of Fixed Assets” number C.Tel.286/
KU320/COP-I0000000/2016. This application
is
still based on the estimation since the appraisal
from KJPP is still ongoing so that the paid tax is still
considered as the advanced payment and it came
from the compensation of excess of payment/the
remaining of the advance payment of Income Tax for
Revaluation in 2015 in the amount of Rp538 billion.
Until the preparation of this report, the process of
appraisal by KJPP is still ongoing.
3
NUMBER
11 OF 2008 REGARDING ELECTRONIC
• Has no material impact to the financial report [of
INFORMATION AND TRANSACTION
the Company];
In November 25, 2016, the President of RI passed Law
• Has the impact on the Telkom’s operational
Number 19 Of 2016 which amended some provisions
aspect, which is to actively involve in assisting the
under Law Number 11 Of 2008 Regarding the Electronic
government in order to conduct a law interception
Information and Transaction. The new law amends some
as mandated by the prevailing regulations and
provisions, namely: To add some elucidations to affirm
participate in preventing the spread of negative
the provisions on the defamation and to reduce the
content in the internet.
criminal sanction, to give mandate the stipulation on
the interception procedure into the law, to synchronize
the provisions of procedural law into Law of ITE with
the provisions under the procedural law as stipulated
under KUHAP or the Criminal Law Procedures Code, to
strengthen the role of investigator from Civil Servant
(PPNS), to add the provision on or the obligation to
delete content that is not relevant to the operator of
electronic system as the guarantee to protect private
data and give the strong basis to the government to
prevent the spread of negative content in the internet.
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Significant Effect
Effect On Financial Statement
4
REGULATION OF THE MINISTER OF COMMUNICATION
• Has no material impact to the financial report [of
AND
INFORMATICS NUMBER
17 OF 2016 AS
the Company];
AMENDED WITH THE REGULATION OF MINISTER OF
• Has the impact to the procedure to record the
COMMUNICATION AND INFORMATICSNUMBER 19 OF
gross revenue on Telkom’s revenue account.
2016 REGARDING THE IMPLEMENTING GUIDELINE TO
THE TARIFF FOR THE NON-TAX STATE INCOME FROM
THE LEVY ON THE RIGHT FOR TELECOMMUNICATION
OPERATION AND THE CONTRIBUTION FOR UNIVERSAL
SERVICE OBLIGATION.
In September 26, 2016, the Minister of Communication
and Informatics promulgated the REGULATION OF
MINISTER OF COMMUNICATION AND INFORMATICS
NUMBER 17 OF 2016 and therefore, it revoked some
regulations in relation to the Implementing Guideline For
the Tariff for PNBP and the levy to Telecommunication
for Universal Service
BHP and the Contribution
Obligation (USO). The amendments were made in order
to implement the record and collection of receivables
on PNBP from the levy to the Telecommunication BHP
and the contribution for USO. This ministerial regulation
stipulates the implementing guideline in relation to the
type of income that is not included in the gross income
from telecommunication operation, the procedure to
calculate, deposit, submission of financial report, and the
determination of the Fee for the Right to Operate the
Telecommunication and the Contribution for Universal
Service Obligation, as well as the procedure to submit
the objection against the determination of the unpaid
Non-Tax State Income.
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2. Transaction with Related Parties.
Summary of Significant Accounting Policy
Group Consolidated Financial Report was prepared
pursuant to the Financial Accounting Standard (“SAK”)
in Indonesia which covers the Statement of Financial
Accounting Standard
(“PSAK”)
in
Indonesia and
Interpretation of Financial Accounting Standard (“ISAK”)
in Indonesia issued by the Board of Financial Accounting
Standard –
Indonesian Accountant Association and
Regulation of Capital Market and Financial Institution
Supervisory Body (Bapepam-LK) No.VIII.G.7 regarding
“the Financial Report Presentation and Disclosure of
Issuer or Public Company”, as attached in the letter KEP-
347/BL/2012. Accounting standard and interpretation that
According to Regulation of Bapepam-LK No.VIII.G.7
regarding the Financial Report Presentation and
Disclosure of Issuer or Public Company, the entity
related to the government constitutes a party
controlled,
jointly controlled or
influenced by a
government. The government in this matter is the
Minister of Finance or Regional Government that
constitutes the shareholder of the entity. According
to IFRS, entity related to the government is the entity
that is controlled, jointly controlled or influenced by a
government. The government in this matter shall refer
to the government, government institution and similar
institution either local, national or international.
In 2016, there was no new PSAK/ISAK that has significant
have been certified by the Board of Financial Accounting
impact to Telkom’s financial report.
Standard (“DSAK”), but have not been taken into effect
for the ongoing financial report are disclosed in note 2.a
Consolidated Financial Report.
Summary of Significant Differences between
PSAK and the International Financial
Reporting Standard (“IFRS”)
Since 2011, Telkom adopted IFRS in preparing financial
statements to the New York Stock Exchange (NYSE).
Summary of significant differences between the PSAK
and IFRS are as follows:
1. Land Rights.
According to PSAK, land rights shall be recorded as
part of fixed asset and shall not amortized unless there
is an evidence indicating that the extension or renewal
of land right is most likely or certainly unobtainable.
The legal fee for the application of extension or renewal
of land right shall be acknowledged as intangible asset
and shall be amortized for the duration of legal period
or economical period of the land, whichever shorter.
According IFRS, land right shall be recorded as the
lease and be presented as part of fixed assets. The land
right shall be amortized during the lease period.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Corporate
GovernanCe
164
166
173
174
182
Implementation and Strengthening of GCG roadmap 2011-2017
Basic and principle of Corporate Govermance
Corporate Govermance assessment
General Meeting of Shareholder
Board of Commissioners
190 audit Committee
194 nomination and remuneration Commi
198
201
212
214
216
217
Committee for the planning and risk, evaluation and Monitoring
Board of Directors
Corporate Secretary
Internal audit Unit
Internal Control System
risk Management System
224 Whistleblowing System
226
Significant Legal Disputes
227
Information regarding administrative Sanctions
228 Corporate Culture
234 Code of Conduct
234
employee Stock ownership program
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GovernanCe roaD Map
2012
2013
• The strengthening of the governance
organs through GCG development and
implementation involving the business
group through the establishment of an
Executive Board with the aim of shaping
the Company’s capabilities in carrying
out strategic steps related to portfolio
management supported by a parenting
mechanism more in line with business
ecosystem demands.
• Continuing the strengthening of the
governance process to ensure that the
business process is in line with the “New
Telkom” business and organizational
transformation in accordance with the
Telkom’s Corporate Office Organizational
Policy No.202.11/2013.
checklist
self-assessment
• The strengthening of the governance
organs by empowering Telkom Group’s
GCG, designing the GCG implementation
and
for
subsidiary entities, and the appointment
of members of the Board of Directors of
subsidiary entities as members of Telkom
Group’s executive board and Telkom’s
Vice President in accordance with their
field of work and responsibilities as Telkom
Group’s Group Head, as stipulated in the
Corporate Office Organizational Policy
No.PD.202/2012.
• The strengthening of the governance
process to ensure that the business process
is in line with business and organizational
transformation.
164
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• The strengthening of the governance organs
through GCG for the implementation of an
organization having the characteristics of a
holding company encompassing subsidiary
entities
implementation
of an Executive Board mechanism and
implementational improvements.
through
the
2015
• The strengthening of Business Ethics
encompassing Telkom Group.
• The launching of the Culture Year.
• The strenghtening of the governance process
ISO/ISO certification process
through
discipline for “New Telkom”.
• The strenghtening of the governance
organs through GCG assessment for
subsidiary entities.
• The implementation of the COSO 2013
Framework as a basis for Internal Control
and Integrated Audit.
• The strengthening of the governance
ISO certification/
process to ensure
surveillance.
2016
The implementation of
“Role Model GCG”.
2017
Enhancing GCG Framework, comply with the national
regulation and following international best practices.
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teLKoM Corporate
GovernanCe prInCIpLe
The Company has been consistently implementing the
principles of good corporate governance (GCG) at all
of the Company’s operational levels in order to create
good decision making processes, enhance productivity
and accountability, as well as to serve the interests of all
stakeholders.
The Company’s commitment
in
implementing GCG
c. principle of responsibility
regulations and
laws and
– complying with
implementing sound
corporate principles. The Company ensures that
Telkom continues to comply with all prevailing laws
and regulations, consisting of laws/regulations on
taxation, fair competition, industrial relations, work
health/safety, remuneration standards, as well as
other relevant regulations. Furthermore, a VP Legal
and Compliance function has also been established,
structurally assigned to ensure the compliance of all
is reflected through the Resolution of the Directors
laws and regulations.
regarding GCG Guidelines No.29/2007 and GCG
Guidelines No.602/2011. The Resolution comprises of
several GCG implementation systems to guarantee that
d. principle of Independence – professional without any
conflicts of interest nor pressure from any party that is
GCG is ethically and duly implemented upon internal and
against the laws and regulations and sound corporate
external transactions in accordance with good corporate
principles. The Company has expressly set forth the
governance practices.
Implementation of Basic GCG principles
rules/authorities
in regard to corporate decision
making in the Board Charter and the Company’s
Articles of Association. Furthermore, the Company
implements several supplementary policies in the
Company’s Corporate Governance Guidelines, such
as policy regarding conflict of interest transactions,
As a publicly listed company at IDX for over 20 years,
prohibition of political party donations, and prohibition
Telkom has implemented all basic GCG principles, as
on affiliations.
follows:
a. principle of transparency – transparency in the
decision-making process and providing material and
e. principle of equality and equity – fairness and equality
in fulfilling the rights of stakeholders arising from
relevant information regarding the Company. The
agreements and prevailing laws and regulations. The
Company routinely publishes a Financial Statements
implementation is conducted in several operational
and Annual Report and other material information
aspects, covering honoring minority shareholder
easily accessible to investors. Such information is
rights, insider trading prohibition, balanced scorecard-
provided in the form of: the Company’s website, print
based performance management, open bidding and
media and press releases, one-on-one meetings with
e-procurement in the procurement of goods/services.
investors, public expose and press gatherings.
b. principle of accountability – clarity of the functions,
role and responsibilities of shareholders, Board of
Commissioners, Directors, Committees, and
the
Corporate Secretary in order to make the management
effective. The Company ensures the availability of
charters necessary for each of the Company’s main
organs, to create check and balances mechanism on
the authorities and roles in the management of the
Company. Furthermore, KPI criteria and operational
targets are also clearly set out.
Implementation of GCG principal Based on
oJK Corporate Governance Guidance
Furthermore, Telkom already implementing 8 corporate
governance principle based on OJK’s Corporate
Governance Guidance for Public Company, as follow:
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Principle 1
recommendation
Implementation
Improving
the
value
of
1. Technical
methods
or
The Company already has
technical
shareholders Annual General
procedures
for open
and
procedures for voting set out
in the
Meeting (RUPS) management
closed voting that prioritize
procedures for the General Meeting of
independence and interest of
Shareholders
the shareholders
Remark: Comply
2. Members of
the Board of
All of the members of the Board of Directors
Directors and the Board of
and the Board of Commissioners attended
Commissioners
attend
the
the GMS
Annual GMS
Remark: Comply
3. A summary of minutes of GMS
The Company provided a Summary of
is available at the Website at
Minutes of GMS at the Company’s Website
least 1 year
under Investor Relations
Principle 2
Improving
the Public Listed
1. To
have
a
policy
on
The Company
has
a
policy
on
Company Communication Quality
communications between Public
communications with
Investors through
with Shareholders or Investors
Company and shareholders and
Non Deal Roadshow, One on One Meeting,
investors
Earnings Call, Public Expose, Conference
Remark: Comply
and Investor Summit
Remark: Comply
2. Post
the
policy
on
The Company has made available materials
communications of a Public
of each Earnings Call, Conference and
Company at the Website
materials of presentation to investors at the
Company’s website to provide equality for
Shareholders and Investors regarding the
implementation of Communications with
the Company
Remark: Comply
Principle 3
Strengthen
the Membership
1. Determination of the number
The Company has complied with the
and Composition of Board of
of members of
the Board
provision applicable to the Company as
Commissioner
of
Commissioners
takes
Public Company as set out in Article 20 of
into account the company’s
POJK No.33/POJK.04/2014 that the number
Conditions
of members of the Board of Commissioners
must be more than 2 (two) persons.
Remark: Comply
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recommendation
Implementation
2. Determination
of
the
At the Shareholders’ discretion, members
composition of members of
of the Board of Commissioners have been
the Board of Commissioners
appointed by taking into account a variety
takes into account the required
of skills, knowledges, experiences and
variety of skills, knowledge and
the Company’s business conditions and
experience
complexity
Principle 4
Improving the Quality of Duty
1. The Board of Commissioners
Basically, the assessment of the performance
and Responsibility of Board of
has a policy to self-assess the
of the Board of Commissioners is carried out
Commissioner
performance of the Board of
by Class A Dwiwarna Shareholders through
Commissioners
the mechanism of a General Meeting of
Remark: Comply
Shareholders
Remark: Explain
2. The self-assessment policy is
The Company does not have any self-
reported in an Annual Report
assessment policy yet, that therefore there
is no self-assessment policy reported in the
Annual Report
Remark: Explain
3. The Board of Commissioners
In accordance with our Articles of
has a policy of resignation in
Association, any member of the Board of
the event of involvement in any
Commissioners who does not meet any
financial crimes
requirements to be a member of the Board
of Commissioners as set out in the Articles
of Association including any involvement
in any financial crimes, the consequence
of which is that his/her position will be null
and void
In the event that the member of the Board
of Commissioners resigns, it will be resolved
at a GMS
Remark: Comply
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recommendation
Implementation
4. The Board of Commissioners or
The Nomination
and Remuneration
the NRC sets out a provision of
Committee sets out in the Nomination
succession in the Nomination
and Remuneration Committee Charter
Process of a member of the
that among
its duties
is
to give
Board of Directors
recommendations
to
the Board of
Commissioners to be
informed to the
Class A Dwiwarna Shareholders about the
Planning of Succession of Members of the
Board of Directors
In addition, as an SOE, the provision of
succession of the Board of Directors
refers to Regulation of the SOE Minister
No.PER-03/MBU/2015 on the requirements,
procedures
for
the appointment and
dismissal of a member of the Board of
Directors of an SOE
Remark: Comply
Principle 5
Strengthening Membership and
1. Determination of the number
Determination of the number of members
Compositions of Directors
of members of the Board of
of the Board of Directors of the Company
Directors takes
into account
refers to the provision of POJK No.33/
the Company’s
conditions
POJK.04/2014 which
provides
that
and effectiveness in decision-
the Board of Directors and Board of
making
Commissioners of Listed Companies or
Public Companies must consist of at least 2
(two) members
Remark: Comply
2. Determination
of
the
At the Shareholders’ discretion, members
Composition of members of
of the Board of Directors of the Company
the Board of Directors takes
have been appointed by taking into account
into account a variety of skills,
a variety of skills, knowledges, experiences
knowledges and experiences as
and the Company’s conditions and business
required
complexity
Remark: Comply
3. Members
of
the
Board
The member of the Board of Directors in
of Directors
in charge of
charge of accounting and finance in the
accounting and finance have
Company is the Finance Director who
skills and/or knowledge
in
has sufficient accounting and financial
accounting
knowledge and experience as can be seen
in the position and education history of
the Board of Directors under the section of
Profiles of the Board of Directors
Remark: Comply
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Principle 6
recommendation
Implementation
Improving
the Quality
of
1. The Board of Directors has
The Board of Directors has a Self-
Implementing
Task
and
a policy to self-assess the
Assessment policy as set out in the section
Responsibility of Board of
performance of the Board of
of Performance Assessment of the Board of
Directors
Directors
Commissioners and the Board of Directors
Remark: Comply
2. The self-assessment policy is
Results of the Self-Assessment of the Board
reported in an Annual Report
of Directors are reported in the Company’s
Annual Report under the section of
Corporate Governance
Remark: Comply
3. The Board of Directors has
a policy of resignation in the
In accordance with our Articles of
Association, any member of the Board
event of involvement in any
of Directors who does not meet any
financial crimes
requirements to be a member of the Board
of Directors as set out in the Articles of
Association including any involvement in
any financial crimes, the consequence of
which is that his/her position will be null
and void
In the event that the member of the Board
of Directors resigns, it will be resolved at a
GMS
Remark: Comply
Principle 7
Improving Corporate Governance
1. To have a Policy to prevent
In accordance with Regulation of the
Aspect
through Stakeholders
Insider Trading
Human Capital Management Director No.PR
209.05.r.00/PS800/COP-A4000000/2017
on Employees’ Compliance Ethics, the
provision to prevent Insider Trading is as set
out in Article 7 on Gross Violations, which
include Abuse of Authority or Position
Remark: Comply
2. To
have
a
Policy
of
We are always committed to preventing
Anticorruption and Antifraud
Corruption in our company. This is realized
through the existence of integrity pact
completed by all employees of Telkom and
the existence of a separate website as an
integrity portal for all employees of Telkom,
called myintegrity.telkom.co.id
Remark: Comply
Participation
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recommendation
Implementation
3. To have a Policy on
the
We select our vendors and suppliers in
Selection and Capacity Building
accordance with our internal procurement
of Suppliers and Vendors
policy managed through the Share Service
Operation Procurement Department and
implemented by reference to Regulation
of the Finance Director No.PR.301.08/r.01/
COP-A00110000/2016 on Procurement
Implementation Guidelines
Remark: Comply
4. To have a Policy on
the
We have a policy to fulfill the rights of our
Fulfillment of Creditors’ Rights
creditors through the Corporate Finance
Unit that sets out and manages the rights
of our creditors
Remark: Comply
5. Memiliki
Kebijakan
system
Pursuant to Decision of the Board of
whistleblowing
Commissioners No.08/KEP/DK/2016 dated
8 June 2016 on the Provision of Complain
Handling Procedures (Whistleblowers) at PT
Telkom Indonesia, Tbk and its consolidated
Subsidiaries and ratified by Regulation of
the Board of Directors No. PD.618.00/r.00/
HK200/COP-C0000000/2016 dated 21
December 2016, Telkom guarantees and
ensures the protection of identity of the
whistleblowers, whether the employees or
third parties filing any complaints or reports
of alleged violations
Remark: Comply
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recommendation
Implementation
6. To have a Policy on the granting
In determining the incentives to be earned
of
long-term
incentives
to
by the Board of Directors, we are guided
the Board of Directors and
by Regulation of the Minister of SOEs
Employees
No.Per-04/MBU/2014 on Income Allocation
Guidance for Board of Directors, Board
of Commissioners and Board of Trustees
of State Owned Enterprises, as for the
incentives for employees, it is set out in the
Collective Labour Agreement Chapter VI on
compensations and benefits. In addition,
we also provide long-term incentives in
the form of Employee Stock Option Plan
(ESOP), which was last done in 2013.
Remark: Comply
Principle 8
Improving the Implementation of
1. To use information technology
We are also active in a variety of social media
Information Disclosure
more widely other
than a
as a medium of information disclosure and
Website as a medium of
product promotion. In addition, we also
information disclosure
use the mailing list system as a medium of
information disclosure and communication
for investors
Remark: Comply
2. The Annual Reports of Public
We disclose the most current beneficial
Companies disclose the most
owners of the Company’s shareholding
current beneficial owners of
with 5% or more shareholding in our Annual
the Company’s shareholding,
Report under the section of Composition of
at least 5% other than major
Shareholding
shareholders and Controllers
Remark: Comply
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aSSeSSMent
Corporate
GovernanCe
on assessment theme, to be followed by presentations
in front of judges.
4. The observation phase, when the IICG Jury reviews the
The Corporate Governance Perception Index assessment
Company and conduct discussions and question and
and rankings process consist of four phases with each of
answer sessions, as well as confirm the implementation
them have a different value:
of GCG in the Company to the Board of Directors,
1. The self assessment phase, when the Company
complete self assessment questionnaires based on
Board of Commissioners and Senior Leader.
GCG rating theme.
The results of the GCG assessment and grading are
2. The document observation phase, when the Company
determined from the self assessment results, completion
submit their policies, procedures, and other evidence
of documents, papers and observations. From these
that reflects GCG implementation in the Company.
results, Telkom has once again received the title of “The
3. The paper and presentation assessment phase, when
Most Trusted Company”, with a total score of 91.18. The
the Company prepare and submit papers describing
GCG assessment theme of 2015/2016 is “GCG through the
the Company’s activities in implementing GCG based
Sustainability Perspective”.
teLKoM Corporate GovernanCe StrUCtUre
First Unit
General Meeting of Shareholders (GMS)
DIreCtorS
BoarD oF
CoMMISSIonerS
Corporate Secretary
audit Committee
Internal auditor
risk & Management Unit
Supporting Unit
nomination & remuneration
Committee
planning and risk evaluation &
Monitoring Committee
Telkom’s governance structure is arranged in accordance with the two tier board structure mechanism. With reference
to Law No.40/2007 of the Republic of Indonesia regarding Limited Liability Companies, Telkom has already in place
a governance structure comprising of the Company’s Main Organ and Supporting Organ. The Company’s Main Organ
comprises of the General Meeting of Shareholders (GMS), the Board of Commissioners and the Board of Directors.
Meanwhile, the Company’s Supporting Organ comprises of, among others, the Audit Committee, the Nomination and
Remuneration Committee, the Planning and Risk Evaluation & Monitoring Committee, the Corporate Secretary, the
Internal Auditor and the Risk Management Unit.
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3. Appropriation of the Company’s net profit within the
Financial year.
The GMS is the highest governance organ that facilitates
4. The determination of remuneration for the members
shareholders in making important decisions for the
of the Board of Directors and Board of Commissioners.
Company in accordance with the Company’s Articles of
5. The appointment of a Public Accounting Firm to
Association and the prevailing laws and regulations.
Audit the Company’s Financial Statements, including
Audit of Internal Control over Financial Reporting and
Telkom routinely holds an annual GMS (AGMS). The
Appointment of a Public Accounting Firm to Audit the
agenda of the AGMS including:
Financial Statements of Partnership and Community
1. Approval of the Company’s Annual Report, including
Development Programs.
the Board of Commissioners Supervisory Task Report.
6. Amendments to the Articles of Association.
2. Ratification of the Company’s Financial Statement and
7. The Delegation of authority to the Board of
the Annual Partnership and Community Development
Commissioners for the Use/Transfer of Treasury Stock
Program Report, as well as the Exemption of Liabilities
resulting from Share Buyback III and IV.
of the members of the Board of Directors and Board
8. Changes in the composition of the Company Board.
of Commissioners.
resolutions of the 2015 GMS
The AGMS of the 2014 Financial year was convened on 17 April 2015 with the following agenda and resolutions:
agenda aGMS resolution
Status of the aGMS
resolution
To approve the Annual Report of the Company which in principle have been presented in the
Effective immediately
Meeting by the Board of Directors regarding the condition and operation of the Company for
the Financial Year 2014 including the Board of Commissioners’ Supervision Duty Report for
the Financial Year 2014.
1. To ratify:
Resolution Effective Immediately
a. The Company’s Financial Statements (Consolidated) for the Financial Year 2014 which has
been audited by the Public Accountant Office Purwantono, Suherman & Surja (a member
firm of Ernst & Young Global Limited) according to its report No.RPC 6824/PSS/2015 dated
27 February 2015 stated with opinion “the consolidated financial statements report present
fairly, in all material respects in accordance with Indonesian Financial Accounting Standards”;
b. Partnership and Community Development Annual Report for the Financial Year 2014
which compiled pursuant to Minister of State Owned Enterprises Regulation that is
comprehensive accounting bases besides Indonesian Financial Accounting Principle
that generally accepted in Indonesia and have been audited by the Public Accountant
Office Purwantono, Suherman & Surja (a member firm of Ernst & Young Global Limited)
according to its report RPC-6644/PSS/2015 dated 11 February 2015 stated with opinion
“the accompanying financial statements present fairly, in all material respects in
accordance with the Non Publicly Accountable Entities Financial Accounting Standards”.
2. Then, by the approval of the Company’s Annual Report and the ratification of Financial
Statement for the Financial Year 2014 and Annual Report on Partnership and Community
Development Program for the Financial Year 2014, the Meeting hereby grant a full acquittal
and discharge (volledig acquit et decharge) to all members of the Board of Directors who
serves in the Financial Year 2014 for their management of the Company and all members
of Board of Commissioners who serves in the Financial Year 2014 for the supervision
of the Company and management and supervision of the Partnership and Community
Development Program performed during the Financial Year 2014, as long as the actions
are reflected in the Company’s Annual Report, Financial Statements for Financial Year 2014
and Annual Report of Partnership and Community Development for the Financial Year 2013
above and the actions are not contradict with the prevailing laws and regulations.
1
2
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS agenda aGMS resolution
Status of the aGMS
resolution
3
1. The appropriation of the Company’s net profit for the Financial Year 2014 in the amount of
• Dividend distribution was
Rp14,638,101,099,000,- which will be allocated to:
conducted on 21 May 2015
a. Cash Dividend amounting to 50% of the net profit or
in the amount of
• The decision on reserve
Rp7,319,009.885,880,- or in the amount Rp74.55 per share based on the number of
effective immediately.
shares issued (excluding the shares already bought back by the Company) as of the
date of the Meeting date which numbers 98,175,853,600 shares;
b. Special Dividend amounting to 10% from net profit or
in the amount of
Rp1,463,801,977,176,- or in the amount Rp14.91 per share based on the number of shares
issued (excluding the shares already bought back by the Company) as of the date of
the Meeting date which numbers 98,175,853,600 shares;
c. Recorded as Retained Earning in the amount of 40% from net profit or amounting to
Rp5,855,289,235,944,- which will be used for the development of the Company.
2. The distribution of Cash Dividend and Special Dividend for the Financial Year 2014 will be
conducted with the following conditions:
a. those who are entitled to receive Cash Dividend and Special Dividend are shareholders
whose names are recorded in the Company’s Shareholders on April 29, 2015 up to
16:00 Western Indonesia Standard Time;
b. Cash Dividend and Special Dividend shall be paid all at once on May 21, 2015.
3. To the Board of Directors granted the authorization to regulate further the procedure of
dividend distribution and to announce the same with due observance of the prevailing laws
and regulations in the stock exchange where the Company’s share are listed.
4
5
To grant authority and authorize to the Board of Commissioners, with prior approval from
Has been implemented
Seri A Dwiwarna shareholder to determine the amount of tantieme which will be given to
the members of Board of Director and Board of Commissioners for the Financial Year 2014
and also to determine the amount of the salary/honorarium, allowances, facilities and other
incomes for the members of Board of Director and Board of Commissioners for the 2015 year.
1. Reappointment of Public Accounting Firm Purwantono, Suherman & Surja (a member firm
The PAF’s approval is effective
of Ernst & Young Global Limited) to conduct an integrated audit of the Company for
immediately
the Financial Year 2015 which include the audit of the Consolidated Financial Statements
of the Company, and the audit of the Internal Control over Financial Reporting for the
Financial Year 2015 and to audit the Financial Statements of Partnership and Community
Development Program for the Financial Year 2015.
2. Reappointment of Public Accounting Firm Purwantono, Suherman & Surja (a member firm
Has been implemented
of Ernst & Young Global Limited) to audit the appropriation of funds for the Partnership
and Community Development Program for the Financial Year 2015.
3. To grant authority to the Boards of Commissioners to determine the appropriate audit fee
Has been implemented
and other terms and conditions of appointment of the relevant Public Accounting Firm.
4. To grant authority to the Board of Commissioners to appoint an alternate Public Accounting
Has been implemented
Firm and determine the term and condition of its appointment; in the event the appointed
Public Accounting Firm can not perform or continue its duty for any reason including does
not achieve conformity for audit fee.
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Status of the aGMS
resolution
6
1. To amendment of some provisions of Articles of Associations of the Company to comply
Resolution Effective Immediately
with Financial Services Authority regulations No.32/POJK.04/2014 regarding the Plan
and the Convening of the General Meeting of Shareholders of Public Company, Financial
Services Authority regulations No.33/POJK.04/2014 regarding Board of Directors and
Board of Commissioners of Issuers and Public Company, regulation of the Minister of State
Owned Enterprises No.PER-02/MBU/02/2015 regarding Requirements and Procedures for
Appointment and Dismissal of Members of the Board of Commissioners and Supervisory
Board of State Owned Enterprises, Regulation of the Minister of State Owned Enterprises
No.PER-03/MBU/02/2015 regarding Requirements, Procedures for Appointment and
Dismissal of member of the Board of Directors of State Owned Enterprises and the Circular of
the Minister for State Owned Enterprises No.3/MBU/2010; and in order to addition the main
and supporting business activities of the Company; addition of special rights of Shareholders
Series A Dwiwarna, changes provisions concerning the authority of the Board of Directors
limitation related the Board of Directors actions that require the approval of the Board of
Commissioners in carrying out the management actions of the Company and as well as
editorial and systematical revision of the Articles of Association related to the addition of the
substance to the above Articles of Association; as such the changes are compiled in the matrix
of the amandment Articles of Association that has been distributed to the shareholders of the
Company.
2. To grant authority to the Board of Directors of the Company with rights of substitution to
Has been implemented
restate the resolutions of this Meeting in relation with amendment of the Articles of Association
of the Company, including to compile and restate all provision of Articles of Association of the
Company in a notarial deed and further submit application approval and/or notify amendment
of Articles of Association of the Company to the Minister of Law and Human Rights of the
Republic of Indonesia and register it with the Company Registry and to announce in the State
Gazzete of the Republic of Indonesia pursuant to the prevailing laws and regulations.
176
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS agenda aGMS resolution
Status of the aGMS
resolution
7
8
To grant authority and authorize to the Board of Commissioners with prior approval from
Has been implemented
Series A Dwiwarna for use/diversion Company’s Treasury Stock from Share Buy Back III and IV.
1. Honorably dismissal from their offices names as follows:
Effective immediately
a. Mister JOHNNY SWANDI SJAM as Independent Commissioner;
b. Mister IMAM APRIYANTO PUTRO as Commissioner;
c. Mister VIRANO G NASUTION as Commissioner;
effective as of the close of the Meeting with appreciation for contribution of efforts and
thoughts during their term as the member of Board of The Commisioners of the Company.
2. Appoinment the names as follows:
a. Mister RINALDI FIRMANSYAH as Independent Commisioner;
b. Mistress PAMIYATI PAMELA JOHANNA WALUYO as Independent Commisioner;
c. Mister MARGIYONO DARSASUMARJA as Commisioner; with the term of office
effective as of the close of the Meeting and will end as of close of the fitfth Annual
General Meeting of Shareholders without prejudice the right of General Meeting of
Shareholders to dimiss anytime.
3. For the members of Board of the Commisioners who appointed as reffered in number 2
above who still serve in other position that prohibited based on the prevailing regulation to
concurrently performed with the position as the member of Board of Commisioner of State
Owned Enterprises, then the concerned must resign from their position.
y the dismissal and the appointment as stated in number 1 and 2 above, the composition
of the member of the Board of Commisioner are becomes as follows:
tHe BoarD oF CoMMISSIonerS:
Mistress HENDRI SAPARINI as President Commissioner;
Mister HADIYANTO as Commissioner;
Mister PARIKESIT SUPRAPTO as Independent Commissioner;
Mister DOLFIE OTHNIEL FREDRIC PALIT as Commissioner;
Mister RINALDI FIRMANSYAH as Independent Commisioner;
Mistress PAMIYATI PAMELA JOHANNA WALUYO as Independent Commisioner;
Mister MARGIYONO DARSASUMARJA as Commisioner.
Note: All of the above AGMS resolutions are in line with the adopted agenda and is reflected in the AGMS invitation.
177
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS resolutions of the 2016 GMS
The AGMS of the 2015 Financial Year was conducted on 22 April 2016. The agenda and status of the AGMS of the 2015
Financial year are as follows:
agenda aGMS resolution
Status of the aGMS
resolution
1
2
To approve the Annual Report of the Company which substantially have been presented
Effective Immediately
in the Meeting by the Board of Directors regarding the condition and operation of the
Company for the Financial Year 2015 including the Board of Commissioners’ Supervision
Duty Report for the Financial Year 2015.
To ratify:
Keputusan langsung berlaku
a. The Company’s Financial Statements for the Financial Year 2015 which has been
audited by the Public Accountant Firm Purwantono, Sungkoro & Surja (a member
firm of Ernst & Young Global Limited) according to its report No.RPC 326/PSS/2016
dated February 26, 2016 stated with opinion “the accompanying consolidated
financial statements report present fairly, in all material respects, the consolidated
financial position of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia
Tbk and its subsidiaries ended as of December 31, 2015 and the financial performance
in accordance with Indonesian Financial Accounting Standards”;
b. Partnership and Community Development Annual Report for the Financial Year 2015
which compiled pursuant to Minister of State Owned Enterprise’s Regulation which
is a comprehensive accounting basis in addition to Indonesian Financial Accounting
Principle that generally accepted in Indonesia and have been audited by the Public
Accountant Firm Purwantono, Sungkoro & Surja (a member firm of Ernst & Young
Global Limited) according to its report No.RPC-103/PSS/2016/DAU dated January
27, 2016 stated with opinion “the accompanying financial statements present fairly, in
all material respects, financial position of Center for the Management of Partnership
and Community Development Program of Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk dated December 31, 2015 and financial performance
and cash flow for the year ended on such date in accordance with the Non Publicly
Accountable Entities Financial Accounting Standards”.
–
Then, by the approval of the Company’s Annual Report including Supervisory Task of
the Board of Commissioner Report and the ratification of Financial Statement for the
Financial Year 2015 and Annual Report on Partnership and Community Development
Program for the Financial Year 2015, the Meeting hereby grant a full acquittal and
discharge (volledig acquit et de charge) to members of the Board of Directors dan the
Board of Commissioners who serves in the Financial Year 2015 consecutively for the
managerial and supervisory actions of the Company as long as those actions are not
criminal act and those actions are reflected in the Company’s Annual Report, Financial
Statements (Consolidated) for Financial Year 2015 and Annual Report of Partnership
and Community Development for the Financial Year 2015.
178
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS agenda aGMS resolution
Status of the aGMS
resolution
3
4
To approve the enforcement of Minister of State Owned Enterprise’s Regulation No.PER-09/
• Dividend
distribution
was
MBU/07/2015 dated July 3, 2015 regarding Partnership Program and Community
conducted on 21 May 2015
Development Program as of the implementation of such regulation to become guidance for
• The decision on reserve effective
the Company in conducting the Partnership and Community Development Program, with
immediately.
due regard to provision in the field of Capital Market.
1. To Approve and determine the appropriation of the Company’s net profit for the
Has been followed-up
Financial Year 2015 in the amount of Rp15,488,659,107,742,- which will be allocated to:
a. Cash Dividend amounting to 50% of the net profit or in the amount of
Rp7,744,304,153,942,- in amount Rp78.864 per share based on the number of shares
issued (excluding the shares already bought back by the Company) as of the date of
the Meeting date which numbers 98,198,216,600 shares;
b. Special Dividend amounting to 10% from net profit or in the amount of
Rp1,548,880,470,432,- in amount Rp15.773 per share based on the number of shares
issued (excluding the shares already bought back by the Company) as of the date of
the Meeting date which numbers 98,198,216,600 shares;
c. Recorded as Retained Earning in the amount of 40% from net profit or amounting
to Rp6,195,474,483,368,- which will be used for the development of the Company.
2. To Approve the distribution of Cash Dividend and Special Dividend for the Financial Year
2015 will be conducted with the following conditions:
a. those who are entitled to receive Cash Dividend and Special Dividend are
shareholders whose names are recorded in the Company’s Shareholders on May 4,
2016 up to 16:00 Western Indonesia Standard Time;
b. Cash Dividend and Special Dividend shall be paid all at once on May 26, 2016.
3. To the Board of Directors granted the authorization to regulate further the procedure of
dividend distribution and to announce the same with due observance of the prevailing
laws and regulations in the stock exchange where the Company’s share are listed.
4. The amount of fund of Community Development Program of Telkom Group for the
Financial Year 2016 of Rp82,000,000,000,- or equivalent with 0.53% of the Net Income
for the Financial Year 2015 which source of funds taken from the Company’s burden.
179
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS agenda aGMS resolution
Status of the aGMS
resolution
5
1. To grant authority and authorize to the Board of Commissioners, with prior approval
The PAF’s approval
is effective
from Serie A Dwiwarna shareholder to determine the amount of tantieme which will be
immediately
given to the members of Board of Director of the Company for the Financial Year 2015
and salary including facility and allowances fo the financial year 2016.
2. To determine the amount of performance tantieme for the Board of Commissioners
Has been implemented
of the Company for the Financial Year 2015 and honorarium including facility and
allowances fo the financial year 2016 in accordance with prevalling laws, then authorize
to the Board of Commissioners after consultation with Serie A Dwiwarna shareholder
to put in detail this Meeting’s resolution in a Board of Commissioner’s Resolution in the
name of General Meeting of Shareholder.
6
1. Reappointment of Public Accounting Firm Purwantono, Sungkoro & Surja (a member
Resolution effective immediately
firm of Ernst & Young Global Limited) to conduct an integrated audit of the Company for
the Financial Year 2016 which include the audit of the Consolidated Financial Statements
of the Company, and the audit of the Internal Control Audit on Financial Reporting
for the Financial Year 2016 and to audit the Financial Statements of Partnership and
Community Development Program for the Financial Year 2016.
2. Reappointment of Public Accounting Firm Purwantono, Sungkoro & Surja (a member
Has been implemented
firm of Ernst & Young Global Limited) to audit the appropriation of funds for the
Partnership and Community Development Program for the Financial Year 2016.
3. To grant authority to the Boards of Commissioners to determine the amount of audit fee
and other terms and conditions of appointment of the relevant Public Accounting Firm.
4. To grant authority to the Board of Commissioners to appoint an alternate Public
Accounting Firm and determine the terms and conditions of its appointment; in the
event the appointed Public Accounting Firm can not perform or continue its duty for any
reason including the agreement on the amount for audit fee is unattainable.
7
1. To approve granting the authority and authorize to the Board of Commissioners with
Has been implemented
prior approval from Serie A Dwiwarna shareholder, in the case of the Board of Directors
uses/diverts Company’s Treasury Stock from Buy Back Share IV.
2. Utilization/diversion of Company’s Treasury Stock from Buy Back Share IV through the
sales either within or outside stock exchange does not require approval from General
Meeting of Shareholders in accordance with regulation in the field of Capital Market.
180
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS agenda aGMS resolution
8
1. Honorably dismissal from their offices the following names:
a. Mister HERI SUNARYADI as Director;
b. Mister PARIKESIT SUPRAPTO as Independent Commissioner;
Status of the aGMS
resolution
Effective immediately
effective as of the close of the Meeting with appreciation for contribution of efforts and
thoughts during their term as the member of Board of the Commissioners and the Board
of Directors of the Company;
2. To assign mister MARGIONO DARSASUMARJA from his office as Commissioner who
was appointed under resolution Annual General Meeting of Shareholders year 2015
PT Telkom Indonesia (Persero) Tbk on the April 17, 2015 to become Independent
Commissioner by continuing his term of office.
3. To appoint the following names:
a. Mister HARRY M ZEN as Director;
b. Mister PONTAS TAMBUNAN as Commissioner;
with the term of office effective as of the close of the Meeting and will end as of close of
the fitfth Annual General Meeting of Shareholders without prejudice the right of General
Meeting of Shareholders to dismiss anytime
4. For the members of the Board of the Commissioners and the Board of Directors who
are appointed as reffered in number 3 above who still serve in other positions that are
prohibited under the prevailing regulation to hold multiple offices with the position
as member of the Board of Commissioner and the Board of Directors of State Owned
Enterprises, then the concerned must resign from his position.
5. By the dismissal, assignment and appointment as stated in number 1 and 2 above, the
composition of the member of the Board of the Company are becomes as follows:
a. BOARD OF DIRECTORS:
• Mr ALEX J. SINAGA - President Director;
• Mr HARRY M. ZEN - Director;
• Mr INDRA UTOYO - Director;
• Mr MUHAMMAD AWALUDDIN - Director;
• Mr HONESTY BASYIR - Director;
• Mr HERDY ROSADI HARMAN - Director;
• Mr ABDUS SOMAD ARIEF - Director;
• Mr DIAN RACHMAWAN - Director
b. BOARD OF COMMISSIONERS :
• Mrs HENDRI SAPARINI – President Commissioner;
• Mr DOLFIE OTHNIEL FREDRIC PALIT - Commissioner;
• Mr HADIYANTO - Commissioner;
• Mr PONTAS TAMBUNAN – Commissioner;
• Mr MARGIYONO DARSASUMARJA – Independent Commissioner;
• Mr RINALDI FIRMANSYAH - Independent Commissioner;
• Mrs PAMIYATI PAMELA JOHANNA WALUYO - Independent Commissioner;
6. To authorize with the right of substitution to the Board of Directors to state resolution
adopted in the Meeting into notarial deed and to appear before Notary or authorized official
and to make any adjustments or corrections which are necessary when required by the
competent authority for the purposes of implementation of the resolutions of the Meeting.
Note: All of the above AGMS resolutions are in line with the adopted agenda and is reflected in the AGMS invitation.
181
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS tHe BoarD oF CoMMISSIonerS
The Board of Commissioners constitutes the Company’s organ having collective duties and responsibilities in supervising
the execution of duties and responsibilities of the Board of Directors as well as to give the advice to the Board of
Directors in managing the Company and implementing the Good Corporate Governance (GCG).
the Composition of Board of Commissioners
In 2016, there was a change of composition of Telkom’s Board of Commissioners. Pursuant to the resolutions of the
Annual General Meeting of Shareholders (AGMS) on April 22, 2016, Mr. Parikesit Suprapto was respectfully discharged
from his title as the Independent Commissioner and to appoint Mr. Pontas Tambunan as the Commissioner. In addition
to it, there was an exchange of title of Mr. Margiyono Darsasumarja from his position as the Commissioner to become
the Independent Commissioner by continuing his term of office.
table of Composition of the Board of Commissioners of pt telkom per 31 December 2015
no
name
title
appointment
Discharge Date
Hendri Saparini
President Commissioner
December 19, 2014
AGMS 2019
1
2
3
4
5
6
7
Dolfie Othniel Fredric Palit
Hadiyanto
Margiyono Darsasumarja
Parikesit Suprapto
Rinaldi Firmansyah
Commissioner
Commissioner
Commissioner
May 11, 2012
April 17, 2015
Independent Commissioner
May 11, 2012
Independent Commissioner
April 17, 2015
Pamiyati Pamela Johanna Waluyo
Independent Commissioner
April 17, 2015
AGMS 2017
AGMS 2020
April 22, 2016
AGMS 2020
AGMS 2020
December 19, 2014
AGMS 2019
table of Composition of the Board of Commissioners of pt telkom per 31 December 2016
no
name
title
appointment
Discharge Date
1
2
3
4
5
6
7
Hendri Saparini
President Commissioner
December 19, 2014
Dolfie Othniel Fredric Palit
Hadiyanto
Pontas Tambunan
Commissioner
Commissioner
Commissioner
December 19, 2014
May 11, 2012
April 22, 2016
Margiyono Darsasumarja
Independent Commissioner
April 17, 2015
Rinaldi Firmansyah
Independent Commissioner
April 17, 2015
Pamiyati Pamela Johanna Waluyo
Independent Commissioner
April 17, 2015
AGMS 2019
AGMS 2019
AGMS 2017
AGMS 2021
AGMS 2020
AGMS 2020
AGMS 2020
182
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Double title of the Board of Commissioners
Some members of Telkom’s Board of Commissioners serve double titles, either in Telkom or in Telkom’s subsidiary.
Complete information regarding the double title of the Board of Commissioners may be seen in the following table:
table of Double title of telkom’s Board of Commissioners
no
name
pt telkom
title
other title
Subsidiary
1
2
3
4
5
6
7
Hendri Saparini
President Commissioner
None
Dolfie Othniel Fredric Palit
Commissioner
Hadiyanto
Commissioner
Pontas Tambunan
Commissioner
Margiyono Darsasumarja
Independent Commissioner
Rinaldi Firmansyah
Independent Commissioner
Pamiyati Pamela Johanna Waluyo
Independent Commissioner
1. Member of Audit Committee
2. Member of KNR
3. Member of KEMPR
1. Chairman of KEMPR
2. Member of KNR
1. Member of Audit Committee
2. Member of KNR
1. Chairman of KNR
2. Member of Audit Committee
3. Member of KEMPR
1. Chairman of Audit Committee
2. Member of KNR
1. Member of KNR
2. Member of KEMPR
None
None
None
None
None
None
None
Remarks: KEMPR (Planning and Risk Evaluation and Monitoring Committee), KNR (Nomination and Remuneration Committee)
Duties and responsibilities of the
Board of Commissioners
1. To conduct the supervision and accountable for
the supervision to the management policies, the
performance of management
in general, either
regarding the Company or the Company’s business,
7. To form the Audit Committee and other committee to
assist the Board of Commissioners in performing its
duties and responsibilities.
8. To evaluate the performance of the committee that
assists the performance of its duties and responsibilities
at the end of financial year.
give advice to the Board of Directors.
the authorities of the Board of Commissioners
2. To supervise the policies of Company’s management
conducted by the Board of Directors as well as to
1. To give the opinion and inputs to AGMS regarding
give advice to the Board of Directors including to
the periodic report and other report from the Board
give advice regarding the development plan of the
of Directors.
Company, annual plan and budget of the Company,
2. To supervise the implementation of working plan and
the implementation of the provisions in Articles of
Association of the Company and resolutions of GMS as
well as the provisions of laws and regulations by taking
into account the Company’s interest.
3. To organize the annual GMS and other GMS pursuant
to its authority as stipulated under the laws and
regulations and articles of association.
4. To conduct the duties, authorities and responsibilities
budget of the Company (including the investment
budget) for the previous financial year as well as to
submit the assessment as well as the opinion to AGMS.
3. To monitor the development of Company’s activities
and in the event that the Company indicates the
degradation symptom, to immediately request the
Board of Directors to announce it to the shareholders
and to give inputs regarding the improvement steps
pursuant to the provisions of laws and regulations, Articles
to be taken.
of Association of the Company and GMS resolutions.
4. To give opinions and inputs to GMS regarding any
5. To conduct the duties and responsibilities in good
other issue deemed important for the management of
faith, full responsibility, and prudentially.
the Company.
6. To scrutinize and review the Annual Report prepared
5. To propose to GMS, through the Board of Directors,
by the Board of Directors as well as to sign the said
Annual Report.
the appointment of public accountant to conduct the
audit towards Company’s Financial Report including
the audit for the internal control upon the financial
183
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS report, pursuant to the prevailing provisions from
be in line with Good Corporate Governance practices.
the capital market authority whereby the Company’s
Charter of Board of Commissioners shall consist of
shares are listed and/or registered.
the elaboration of duties, authorities, obligations,
6. To give the report regarding the supervision duties
responsibilities, division of duties, meeting, provisions
that have been conducted in the financial year that has
regarding the conflict of interest, share ownership, and
just ended to GMS.
the relationship between the Board of Commissioners and
7. To conduct other supervisory duties as determined by
the Board of Directors and GMS. In performing its duties
GMS.
responsibilities of the Board of
Commissioners
and function, besides referring to the Charter of the Board
of Commissioners, the Board of Commissioners shall also
refer to the Articles of Association as well as Letter of the
Joint Decision made by the Board of Commissioners and
the Board of Directors.
Any member of Board of Commissioners shall be
jointly responsible for all Company’s losses caused by
the Board of Commissioners’ Meeting
the mistake or negligence of the member of Board
of Commissioners in performing the duties. Members
Based on the Regulation of OJK No.33/POJK.04/2014
of Board of Commissioners shall not be liable for the
Article 31, the Board of Commissioners shall be obliged to
Company’s loss if they can prove that:
conduct the meeting for at least 1 (one) time within 2 (two)
1. Such loss is not caused by their mistake or negligence;
months or at any time as deemed necessary. The quorum
2. They have performed in good faith, full responsibility,
for all of Board of Commissioners’ meeting shall be the
and prudentially for the interest and based on the
presence of more than half of total members of Board of
purpose and objective of the Company;
Commissioners. In addition to it, Board of Commissioners
3. They do not have any conflict of interest either directly
shall also be obliged to organize joint meeting with the
or indirectly with the management activities causing
Board of Directors at least 1 (one) time within 4 (four)
the loss; and
months and it may also be held at any time as deemed
4. The have taken the action to prevent the occurrence or
necessary. Joint meeting by the Board of Directors and
continuation of such loss.
Board of Commissioners within the Company shall also be
The Board Charter of the Board of
Commissioners
In performing its duties and authorities, Telkom’s Board
of Commissioners shall refer to the Board Charter as
stipulated under the Decision Letter of the Board of
Commissioners No.16/KEP/DK/2013 dated December 17,
2013. The Charter constitutes the reference for the Board
of Commissioners in performing their duties so that it will
referred to as the Joint Meeting.
The mechanism in making the resolutions in the Board of
Commissioners’ meeting shall be based on the deliberation
to reach a consensus. If a consensus cannot be reached,
then the resolution shall be made based on the majority
votes from members of Board of Commissioners that are
present or represented in the meeting. If the votes are
equal, then the resolution shall be made based on the
opinion of the Chairman of Meeting.
184
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS In 2016, the Board of Commissioners has held internal meetings 19 times. The agenda that was discussed and the
attendance level of members of Board of Commissioners in the internal meeting can be seen in the following table.
table of the agenda and attendance in the Board of Commissioners’ Meetings
Board of Commissioners that present
HS
HD
pt
N/A
DoFp MGD
rF
pJW pS
-
v
v
v
v
no Date
agenda/Discussion of the
Meeting
1
Wednesday,
1.
Inputs from the Audit Committee for
v
v
January 6,
the Organization of Internal Audit Unit
2016
2. Candidate
for Members of Audit
Committee
3. Strategic Fit Project Flus
4. Others: Visit Schedule of the Board of
Commissioners
2
Monday,
1. Proposal for the approval of Strategic
v
-
N/A
v
v
v
v
v
January 18,
Fit Project Flus and Project Queen
2016
2. Meeting preparation with the Deputy
of Minister of SOE
3
Monday,
1. Key Performance Indicators (KPI) of
v
v
N/A
-
v
v
v
-
February 15,
the Board of Directors of 2016
2016
2. The Development of Retirement
Insurance
3. Others: Schedule for the
Implementation of Sign-Off Closing
Integrated Audit for IFASS
4
Tuesday,
1. Proposal for the remuneration of 2016
v
-
N/A
-
v
-
v
v
March 22,
and Tantiem of 2015 (by the Consultant
2016
from Tower Watson)
2. Zorro Project
3. The Development of Telkom Innovation
Center
4. Others:
a. Preparation for AGMS of 2016
b. Corruption Eradication
Commission (KPK)
5
Monday,
1. The selection for the chairman of GMS
v
-
N/A
-
v
v
v
v
April 18,
of 2016
2016
2. Meeting preparation for Pre-GMS
3. The
submission
of Names
of
Candidates for the Board of Directors
of Telkom
4. Agenda 7 of GMS regarding Share Buy
Back (SBB) IV
185
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS no Date
agenda/Discussion of the
Meeting
Board of Commissioners that present
HS
HD
pt
DoFp MGD
rF
pJW pS
6
Friday, May
1. The discussion on the Strategic Fit
v
v
v
13, 2016
Project Discovery and Project Inspire
2. The Presentation on Digital Business
by the Consultant from Delta Partners
7
Wednesday,
1. The Discussion on the Rolling of CSS
v
v
v
May 25 2016
2017-2021
2. Audit Committee Report
3. Others: Proposal on the Remuneration
to SOE
8
Thursday,
1. Remuneration of the Secretariat
v
v
-
June 23,
2. Budget Allocation for Long Term
2016
Incentive (LTI)
3. Retirement
of
Mr.
Rustanto
Hadimartono
4. Anniversary of Telkom
5. Proposal for the Approval of CSS 2017-
2021 and Financing
6. Whistleblower
9
Wednesday,
1. Approval of CSS 2017-2021 and SHL on
v
v
-
July 20,
2016
Jurong Data Center
2. Approval for the Tantiem of the
Secretary of Board of Commissioners
10
Friday, July
Proposal on the change of Commissioners
29, 2016
of PT Telkomsel
11
Thursday,
Proposal on the change of Commissioners
v
v
August 4,
of PT Telkomsel
2016
12
Thursday,
1. Approval for the grant of Equity
v
August 25,
Injection
to Telkom Metra
for
2016
Metraplasa (Blanja.com)
2. Report on the Position of Equity Call in
-
v
v
-
v
v
-
-
-
-
-
-
-
v
v
v
N/A
v
v
v
N/A
v
v
v
N/A
v
v
v
N/A
-
v
v
v
v
v
v
v
v
N/A
N/A
N/A
PT TelkomSigma
3. Discussion on the Threshold for Certain
Activities by the Board of Directors
that require the approval from the
Board of Commissioners
4. Others:
a. CSS 2017-2021
b. Roadmap of Satellite
c. Power of Attorney of the President
Commissioner
186
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS no Date
agenda/Discussion of the
Meeting
Board of Commissioners that present
HS
HD
pt
DoFp MGD
rF
pJW pS
13
Wednesday,
1. Approval for Princess Project
v
v
v
v
v
v
N/A
September
21, 2016
2. Discussion on the Roadmap of Satellite
3. Others:
a. The proposal
to write-off
the
Business Receivables
b. Proposal
for the Remuneration
of the Secretary of the Board of
Commissioners
14
Wednesday,
1. Discussion on the Term Sheet of NewCo
v
v
v
-
v
v
v
N/A
5 October
2016
2. Discussion on the Financing of Jurong
Data Center
3. Others:
a. Retirement Insurance
b. Proposal on the Escrow of Long Term
Incentive (LTI) for
Independent
Commissioner
15
Wednesday,
1. The Approval for Strategic Fit and
v
v
-
-
v
v
v
N/A
12 October
2016
Final Implementation of Metranet as
the Holding of CFU Digital
2. The approval for the acquisition of 49%
Shares MelOn of SKP by Metranet
16
Thursday,
1. Proposal on the Work Plan and Budget
v
-
v
v
v
v
v
N/A
November
24, 2016
of the Secretariat of the Board of
Commissioners
2. The Presentation on the Digitalized
Administration for the Secretariat of
Board of Commissioners
3. Others: The Determination of Absolute
Target of RKAP 2017 from SOE
17
Thursday, 1
1. Approval for the proposal of RKAP 2017
v
December
2. Discussion on the Proposal to Release
2016
the Capex phase II
3. Approval for the Strategic Fit Project
Shine
18
Tuesday,
1. Discussion on Capex SKKL Sabang-Medan
v
-
-
v
v
December
20, 2016
2. Discussion on
the approval
for
Strategic Fit of Project Shine
3. Others: Cost to make the Digitalized
Administration for the Secretariat of
the Board of Commissioners
19
Friday,
1. Discussion on
the Contract of
v
v
-
December
23, 2016
Management of 2017
2. Discussion on the Permit for External
Funding of 2017
-
-
-
v
v
v
N/A
v
v
-
-
v
N/A
v
N/A
Total Attendances
Total Meetings
19
19
12
19
9
14
3
19
18
19
15
19
19
19
4
5
Attendance Level of the Board of Commissioners
100%
63%
64%
16%
95%
79%
100%
80%
Remarks: HS (Hendri Saparini), HD (Hadiyanto), PT (Pontas Tambunan), DOFP (Dolfie Othniel Fredric Palit), MGD (Margiyono Darsasumarja), RF
(Rinaldi Firmansyah), PJW (P. Pamela Johanna Waluyo), PS (Perikesit Suprapto).
187
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS In addition to the above, the Board of Commissioners also conducted the Joint Meeting between the Board of
Commissioners and the Board of Directors which was conducted for 13 times in 2016. Below is the agenda which was
discussed and the frequency of attendance of the Board of Commissioners in the Joint Meeting.
table of agenda and attendance of the Joint Meeting
Board of Commissioners who were present
HS
v
HD
v
pt
N/A
DoFp MGD
no Date
agenda/Discussion of the Meeting
1
2
3
Monday,
1. Performance of the Company In December 2015
January 25,
2. Progress of the Integrated Audit for the Financial
2016
Year of 2015
Monday,
1. Sign-Off for the Consolidated Financial Report
February 29,
(IFAS version) of 2015
2016
2. Performance of the Company in January 2016
Wednesday,
1. Performance of the Company in February 2016
March 23,
2. Preparation of GMS of 2016
2016
4
Wednesday,
1. Performance of the Company in March 2016
April 20, 2016
2. OtherS:
a. Final Preparation for GMS of 2016
b. alent Pool Management
5
6
7
8
Wednesday,
1. Performance of the Company In April 2016
May 25, 2016
2. Discussion on the Final Draft CSS 2017-2021
Thursday,
1. Performance of the Company In May 2016
June 23, 2016
2. Discussion on the Anniversary of Telkom
Wednesday,
Performance of the Company In June
July 20, 2016
Monday,
1. Performance of the Company In July 2016
August 22,
2. Proposal of RJPP/CSS 2017-2021
2016
9
Wednesday,
1. Performance of the Company In August 2016
September 21,
2. Others: Final Development of the Revision Plan
2016
of PP No. 52/2000 and No. 53/2000
10
Monday,
1. Performance of the Company In September 2016
October 24,
2. Proposal Submission of RKAP of 2017
2016
11
Tuesday,
1. Performance of the Company In October 2016
November 29,
2. Proposal Submission of RKAP 2017
2016
12
Monday,
The Ratification of RKAP 2017
December 5,
2016
13
Tuesday,
1. Performance of the Company In November 2016
December 20,
2. Proposal on the Contract of Management of the
2016
Board of Directors of 2017
v
v
v
v
v
v
v
v
v
v
v
v
-
v
-
v
v
v
v
v
-
-
v
-
rF
v
v
v
v
v
v
v
v
-
v
-
v
-
pJW pS
v
-
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
v
v
v
v
v
v
v
v
v
v
v
v
v
N/A
N/A
-
N/A
V
-
-
-
-
V
-
V
-
v
v
-
v
v
v
v
v
-
v
v
v
8
9
Jumlah Kehadiran
Jumlah Rapat
13
13
8
13
5
13
13
13
10
13
12
13
4
4
Tingkat Kehadiran Dewan Komisaris
100%
62%
89%
38%
100%
77%
92%
100%
Remarks: HS (Hendri Saparini), HD (Hadiyanto), PT (Pontas Tambunan), DOFP (Dolfie Othniel Fredric Palit), MGD (Margiyono Darsasumarja), RF (Rinaldi
Firmansyah), PJW (Pamela Johanna Waluyo), PS (Perikesit Suprapto).
188
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS the assessment of Committee under the
Board of Commissioners
internal and external audits.
The Nomination and Remuneration Committee has also
In carrying out its duties and responsibilities, the Board
been performingits responsibilities properly. Various
of Commissioners is assisted by several committees,
proposals related to the candidates and remuneration of
among others the Audit Committee, the Nomination
directors and senior leadershave assisted the Board of
and Remuneration Committee, as well as the Planning &
Directors in making strategic decisions.
Risk Evaluation and Monitoring Committee (PREMC). We
see that these Committees have been carrying out their
The Planning & Risk Evaluation and Monitoring Committee
duties properly.
(PREMC) assisted the Board of Commissioners in business
planning and risk management. With the existence of this
In 2016, the Audit Committee assisted the Board
Committee, the Board of Commissioners can provide
of Commissioners
in overseeing the audit process
considerationsto the Board of Directors in relation to
conducted by an independent auditor office. In addition,
the operations of Telkom in the long term, including the
the Audit Committee also properly helped in evaluating
decisions on mergers& acquisitions (M&A).
and providing recommendations on the results of the
Board of Commissioner remuneration policy
1
Knr by the instruction from
Board of Commissioners
create remuneration draft.
the result will be decide in
aGMS
3
5
4
aGMS
2
Knr ask Independent party
for Suggestion.
Independent party give its
suggestion to Knr
Board of Commissioners
remuneration Mechanism and
procedure
*KNR :Nomination and Remuneration Committee
procedure for Determining the remuneration
The procedure for determining the remuneration of members
Basis for the Determination and Structure of
remuneration
The structure of the remuneration of the Board of
of the Board of Commissioner of Telkom are as follows:
Commissioners is governed by the provisions of the
1. The Board of Commissioners requests the NRC
Regulation of the State Minister for State Owned
to draft a remuneration proposal for the Board of
Enterprises No.Per-04/MBU/2014 on Guidelines
for
Commissioner.
the Determination of Income for Directors, Board of
2. The Nomination and Remuneration Committee
Commissioner and Board of Trustees of SOEs. Based on
requests an independent party to draw up a framework
the said regulation, the income component for members
on the remuneration of the Board of Commissioner.
of the Board of Commissioners consists of:
3. The Nomination and Remuneration Committee
1. Salaries;
proposes
the
remuneration
to
the Board of
2. Allowances;
Commissioners.
3. Facilities;
4. The Board of Commissioner proposes remuneration
4. Bonus/Incentive.
for the Board of Commissioner the AGM.
5. The AGM delegates authority and power to the Board
of Commissioners with the prior approval of Series A
Shareholders to determine the remuneration for the
Board of Commissioner and Board of Directors.
189
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS amount of remuneration for the Board of Commissioners
In 2016, the remuneration paid to the Company’s Board of Commissioners amounted to Rp50.1 billion. Taxes on the
remuneration paid by the Company amounted to Rp 3.5 billion. Recapitulation of the remuneration of the Telkom’s
Board of Commissioners in 2016 is reflected in the following table.
table on the recapitulation of remuneration for telkom’s Board of Commissioners
Board of Commissioners
Salary & and other
Wages
Bonuses
total
value (rp million)
Hendri Saparini
Hadiyanto
Pontas Tambunan*
Dolfie Othniel Fredric Palit
Rinaldi Firmansyah
Pamiyati Pamela Johanna Waluyo
Margiono Darsasumarja
Parikesit Suprapto**
Imam Apriyanto Putro***
Johny Swandi Sjam***
Virano Gazi Nasution***
Note
*) As of the GMS of April 22, 2016
**) Until GMS of April 22, 2016
***) Until GMS of April 17, 2015
1,244
1,120
1,120
774
1,120
1,120
1,120
346
-
-
-
5,040
7,889
7,100
7,100
71
5,040
5,040
7,889
1,904
1,904
1,904
9,133
8,220
8,220
845
6,160
6,160
6,160
8,235
1,904
1,904
1,904
assesment on the Board of Commissioners
performance
Procedures for implementing the performance assesment
of the Board of Commissioners is conducted in the Annual
GMS mechanism, where the Shareholders assesses the
performance of the Company’s Board of Commissioners
based on the task implementation report submitted to
the Shareholders.
The criteria used in the assessment is based on the task
implementation report of the Board of Commissioners
which submitted in the Annual GMS of the Company.
Based on the report, the Shareholders performance
during the current financial year is assessed by the
Shareholders. The Company’s Board of Commissioners is
assessed by the Shareholders through the Annual GMS of
the Company.
assesment on the Board of Directors
performance
The criteria used in the assessment on the performance of
the Board of Directors members is based on a balanced
scorecard that measures 4 (four) main aspects, namely,
financial, customer, internal business process as well as
learning and growth process. It is also containing 3 (three)
elements of Key Peformance Indicator (“KPI”), namely,
shared KPI, common KPI and specific KPI.
190
Shared KPI is a KPI with the meaning, target, realization
and achievement for the entire Board of Directors.
Common KPI is a KPI with the same meaning and target,
yet it has different realization and achievement from each
member of the Board of Directors. Specific KPI is a KPI
that is different for each member of the Board of Directors
and a specific program that becomes a part of the main
task and priority of each Director and the Directorate that
he or she leads.
The assessment of the performance of the Board
of of Directors is conducted both by the Board of
Commissioners and the GMS, by referring to the
achievement of KPI of the Board of Directors in its tasks
and duties implementation as in accordance with the
Company’s Articles of Association and its achievement
on the realization of RKAP. The KPI achivement of the
Board of Directors, which will be a reference assessment
for the Board of Commissioners, is obtained after a
process of internal determination. Assessment on the
performance of the Board of Directors is started by
filling out the Management Contract (“MC”) online and
it is then followed by a face-to-face meeting as part of
the clarification process and aimed to determine final
results of performance, which will be submitted to the
Performance Committtee and the President Director to
be finalized and submitted to the Board Commissioners.
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS One of the measure to see Board of Directors performance
is through excellence performance assessment criteria
(KPKU). In 2016, the performance of the Board of Directors
is re-assessed by a Team appointed by the State Ministry
of the State-Owned Enterprises to assess the company;s
performance with reference to the Superior Performance
Assessment Criteria of State-Owned Enterprises. The
Superior Performance Assessment Criteria is none other
than the superior performance assessment criteria
based on the Malcom Baldrige Criteria for Performance
Excellence (MBCFPE).
table of the 2014-2016 performance
assessment of KpKU
tahun
2014
2015
2016
nilai
667
722.25
730.5
aUDIt CoMMIttee
Audit Committee was formed by referring to the Regulation
of the Financial Services Authority (OJK) No.55/
POJK.04/2015 dated December 23, 2015 and regulation of
US SEC Exchange Act 10A-3 as well as other regulations.
The formation of Audit Committee was intended to
assist the Board of Commissioners in performing the
supervision function as stated in the Audit Committee
Charter which has been adjusted few times and lastly
amended in 2013 through the decision of the Board of
Commissioners No.07/KEP/DK/2013 dated July 22, 2013.
By the issuance of the copy regulation of OJK No.55/
POJK.04/2015 dated December 23, 2015 regarding the
Formation and the Guideline for the Work Performance
of the Audit Committee, the Audit Committee has
conducted the review of which result stipulates that
during 2016 there has not been an adjustment since
there is no significant amendment of the regulation to re-
determine the guideline for the work performance of the
Audit Committee.
Composition of the audit Committee
In reference to the Regulation of OJK and regulation of US SEC, the Audit Committee must at least consist of three members and
of them is the Independent Commissioner that acts as the chairman and the other two members must be independent parties.
Pursuant to the resolution of the Annual GMS of 2016 dated April 22, 2016 that determined the change of composition of the
Board of Commissioners, the adjustment to the composition of members of Audit Committee was made and lastly made through
a decision of the Board of Commissioners No.09/KEP/DK/2016 dated July 27, 2016 regarding the Composition of Membership of
Audit Committee of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk as follows:
table of the Composition of audit Committee per 31 December 2016
title
Chairman
name
Basis of appointment
term of Service
Rinaldi Firmansyah*
Decision of the Board of Commissioners No.06/KEP/
2015 - present
(Independent Commissioner)
DK/2015 dated 7 May 2015
Secretary
Tjatur Purwadi (Non-affiliated
Decision of the Board of Commissioners No.05/KEP/
2014 - present
external member)
DK/2014 dated March 25, 2014 and lastly stipulated under
the decision of the Board of Commissioners No.09/KEP/
DK/2016 dated 27 July 2016.
Margiyono Darsasumarja*
Decision of the Board of Commissioners No.07/KEP/
2016 – present
(Independent Commissioner)
DK/2016 dated 29 April 2016
Dolfie Othniel Fredric Palit*
(Commissioner/Non-Voting
Member)
Pontas Tambunan*
(Commissioner/Non-Voting
Member)
Sarimin Mietra Sardi
(Independent Member)
Decision of the Board of Commissioners No.02/KEP/
2015 – present
DK/2016 dated February 2, 2015
Decision of the Board of Commissioners No.09/KEP/
2016 – present
DK/2016 dated July 27, 2016 regarding the composition
of Membership of Audit Committee of the Company
(Persero) PT Telekomunikasi Indonesia Tbk
Decision of the Board of Commissioners No.04/KEP/
2016 – present
DK/2016 dated March 31, 2016
Member
Remarks: *Profile of members of Audit Committee can be seen on the profile of the Board of Commissioners
191
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS table of the Composition of the previous audit Committee
title
Chairman
Secretary
Member
name
Rinaldi Firmansyah (Independent Commissioner)
Tjatur Purwadi (Non-affiliated external member)
Parikesit Suprapto (Independent Commissioner)
Dolfie Othniel Fredric Palit (Commissioner)
profile of Members of audit Committee
that is not in Double title as the Board of
Commissioners
Sarimin Mietra Sardi – Independent
Member of the audit Committee
Date of Birth
: Ujungpandang, September 17, 1958
tjatur purwadi – Secretary/Member
of audit Committee
Date of Birth
: Surabaya, January 28, 1956.
Age
: 60 years
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia.
title and Basis of the appointment
Secretary of the Committee pursuant to Decision of the
Board of Commissioners Perusahaan Perseroan (Persero)
PT Telekomunikasi Indonesia Tbk No.05/KEP/DK/2014
dated March 25, 2014 and lastly appointed through the
Decision of the Board of Commissioners No.09/KEP/
DK/2016 dated July 27, 2016.
term of Service
2014 up to present.
education
S1 in Accounting from Gadjah Mada University and
Magister Manajemen in the Finance Sector from Padjajaran
University.
Career experience
Prior to becoming the Secretary/Member of Audit
Committee of Telkom, Tjatur Purwadi has worked in PT
Telkom Indonesia, Tbk since 1979 to 2012. During his term
Age
: 58 years.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia
title and Basis of the appointment
Member of Audit Committee pursuant to Decision of the
Board of Commissioners Perusahaan Perseroan (Persero)
PT Telekomunikasi Indonesia Tbk No.04/KEP/DK/2016
dated March 31, 2016 and lastly appointed through the
Decision of the Board of Commissioners No.09/KEP/
DK/2016 dated July 27, 2016.
term of Service
2016 up to present.
education
D4 in Accounting at State Higher Education in Accounting
(STAN) and Magister Manajemen
from
Indonesian
Education University.
Career experience
Prior to becoming the member of Audit Committee of
Telkom, Sarimin Mietra Sardi has worked in PT Telkom
Indonesia (Persero) Tbk, since 1982 until 2014. During
his term of service in PT Telkom Indonesia (Persero) Tbk,
Sarimin Mietra Sardi has been in some strategic positions
which among others were the Deputy of SGM Finance
Operation and Director of Finance & SDM in the Pension
of service in PT Telkom Indonesia (Persero) Tbk, Tjatur
Fund of Telkom.
Sarimin Mietra Sardi became the member of Audit Committee
since March 31, 2016 and has his duties to supervise and
monitor the process of integrated audit, the process of
consolidation of financial report, effectiveness of internal
control upon the financial reporting. Pursuant to the decision
of the Board of Commissioners No.09/KEP/DK/2016, he was
appointed as the member of Audit Committee.
Purwadi has been in some strategic positions which among
others were the Vice President (VP) - Financial & Logistic
Policy and Head of Internal Audit. After retiring from PT
Telkom Indonesia (Persero) Tbk he has the position as the
Director - Assurance Team of KAP Tanudiredja, Wibisana
& Rekan/PwC.
Tjatur Purwadi became the member of Audit Committee
since 1 March 2014 and has his duties to facilitate the
performance of duties of members of Audit Committee,
to maintain correspondences, prepare documentation,
make report on the amendment of Audit Committee
Charter, as well as to coordinate the selection process
of the independent auditor. Pursuant to the decision of
the Board of Commissioners No.09/KEP/DK/2016, he
was appointed as the Secretary and also as the financial
expert in the Audit Committee. In addition to being the
secretary of the audit committee, currently there is no
other position held by Tjatur Purwadi inside and out side
the Company.
192
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Duties and responsibilities of audit Committee
In performing its function, the Audit Committee has the duties and responsibilities consisting: (i) to supervise the
effectiveness of the implementation of internal control in the preparation of financial report (Internal Control Over
Financial reporting/ICOFR); (ii) to conduct the review on the financial information to be released to Public and/or
capital market authority as well as the compliance to the laws and regulations related to the company’s activities; (iii) to
give the recommendation to appoint an external auditor based on the principle of independence, scope of assignment
and compensation; (iv) to conduct the review on the examination conducted by the Internal Auditor and to supervise
the follow up by the Board of Directors on the findings from Internal Auditor; (v) to review on complaints related to
the accounting process and financial reporting; (vi) to review and give advice to the Board of Commissioners on the
possibility of conflict of interest within the company; and (vii) the implementation of Good Corporate Governance.
Independence of audit Committee
The Audit Committee has made the statement of integrity and independence as stated in a statement letter signed by
all members of the Audit Committee. Such statement gives the guarantee that any decision taken by this committee
constitutes the decision that is free from other influence.
audit Committee’s Meeting
Pursuant to the Regulation of the Financial Service Authority No.55/POJK.04/2015 dated December 23, 2016 regarding
the Formation and the Guideline for the Work Implementation of the Audit Committee, Article 13 stipulates that the
Audit Committee shall conduct a periodic meeting at least 1 (once) in 3 Months. However, in the Company’s Audit
Committee Charter it is stipulated that Audit Committee shall conduct a meeting 1 (once) in 1 (one) month
In 2016, the Audit Committee has conducted the meeting for 32 times. Those meetings were held pursuant to the
requirements under the Audit Committee Charter and has the objective to facilitate the implementation of duties
and responsibilities of each member of Audit Committee. Total meetings and attendance level of member of Audit
Committee is as follows.
table of the attendance of audit Committee’s Meetings
total Meetings
total attendance
percentage of attendance (%)
32
32
23
32
18
25
30
32
18
18
13
24
94
100
78
57
72
94
name
Rinaldi Firmansyah
Tjatur Purwadi
Margiyono Darsasumardja 1)
Dolfie Othniel Fredric Palit
Pontas Tambunan 2)
Sarimin Mietra Sardi 3)
1) Started in April 2016
2) Started in July 2016
3) Started March 2016
education and training
In the financial year of 2016, there have been some educations and trainings to improve the competence of members of
Audit Committee of Telkom. Various programs of training, workshop, conference and seminar were conducted by the
Company and/or credible external party. Below is the list of education and training participated by members of Audit
Committee in 2016.
193
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS table of education and training of audit Committee
name
training program
Date
Rinaldi Firmansyah
• The Leading Risk Management Conferences, by: Risk
Chicago, September 20 – 23, 2016
Minds Americas
• Panel Discussion: The Role of
Independent
Jakarta, November 9, 2016
Commissioner in pushing the effectiveness of the
oversight function of the Audit Committee from
Regulator’s perspective, by: Association of the
Indonesian Audit Committees (IKAI)
Margiyono Darsasumardja
• Training: Practical Risk Appetite & Tolerances, by the
London, October 11 – 12, 2016
Institute of Risk (IRM)
• Panel Discussion: The Role of
Independent
Jakarta, November 9, 2016
Commissioner in pushing the effectiveness of the
oversight function of the Audit Committee from
Regulator’s perspective, by: Association of the
Indonesian Audit Committees (IKAI)
• Certified in Audit Committee Practice, by: Association
Jakarta, December 6, 2016
of the Indonesian Audit Committees (IKAI)
Dolfie Othniel Fredic Palit
• Training: Practical Risk Appetite & Tolerances, by the
London, October 11 – 12, 2016
Institute of Risk (IRM)
Tjatur Purwadi
• The current PSAK based on the Convergence program
Bali, May 17 – 20, 2016
of IFRS, by: The Indonesian Accounting Association (IAI)
• ECIIA Conference on Governance, Risk and Control, by
Stockholm, October 6 – 7, 2016
: European Confederation of Institutes of Internal Audit
• Panel Discussion: The Role of
Independent
Jakarta, November 9, 2016
Commissioner in pushing the effectiveness of the
oversight function of the Audit Committee from
Regulator’s perspective, by: Association of the
Indonesian Audit Committees (IKAI)
Sarimin Mitra Sardi
• he current PSAK based on the Convergence program of
Bali, May 17 – 20, 2016
IFRS, by: The Indonesian Accounting Association (IAI)
• ECIIA Conference on Governance, Risk and Control,
Stockholm, October 6 – 7, 2016
by : European Confederation of Institutes of Internal
Audit
• Certified in Audit Committee Practice, by: Association
Jakarta, November 9, 2016
of the Indonesian Audit Committees (IKAI)
the Implementation of audit Committee’s
activities
During 2016, the Audit Committee has implemented its
functions, among others, as follows:
1. To conduct the supervision of the Integrated Audit
process for the financial year of 2016.
The Audit Committee has conducted the discussion with
the Internal Auditor and independent auditor Ernst &
Young (EY) in relation to the quality and acceptability
of financial accounting standard implemented by the
Company, the properness of significant accounting
estimate and judgement and the adequacy of disclosure
in the consolidated financial report as well as the internal
control conducted by the Management, so that the
quantity and the quality of financial report that has been
released by the Management can be presented properly
and there is no mistake on the material presentation.
The Audit Committee has also reviewed and discussed
the audited consolidated financial report and the notes
upon the consolidated financial report in the Annual
Report (Form 20F) with Company’s management. With
regard to the company’s risk management, the Audit
Committee also supervised and monitored the frauds
and risks on the financial reporting that may materially
affect the financial report.
2. To conduct the supervision and review to the plan and
implementation of the work program of Internal Auditor
Unit for the financial year of 2016.
The Audit Committee has conducted the review and
discussion regarding the proposal of work program
of Internal Audit Unit for 2016 in relation to the risks
that may occur in 2016 before such work program is
determined by the Management.
194
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS The Audit Committee conducted a quarterly discussion
on the findings and recommendation of the result of
audit process and internal consultation from Internal
Auditor Unit, including the monitoring of the follow ups
completed by the Management.
3. To conduct the supervision upon the audit process
of Partnership and Community Development (PKBL)
program conducted by Community Development Center
(CDC) Unit for the financial year of 2016.
The Audit Committee has conducted the discussion
with the Management of CDC and independent auditor
Ernst & Young (EY) in relation to the implementation
of Partnership and Community Development program
in 2016, the audit process for the financial report in
the financial year of 2016 as well as the agreed upon
procedure/AUP.
4. To conduct the review of the information on the incoming
complaints through the Whistleblower (WBS) program
for the financial year of 2016.
In relation to the issuance of Regulation of the Financial
Service Authority (OJK) No.55/POJK.04/2015 dated
December 23, 2015, the Audit Committee has conducted
perfection on the policy regarding the Procedure to
Handle the Service for Complaint (Whistleblower)
through the decision letter of the Board of Commissioners
No.08/KEP/DK/2016 dated June 8, 2016.
As the follow up for the perfection of policy on the said
procedure to handle the Whistleblower and to give the
opportunity and comfort to all parties in submitting the
complaint either by the employees of Telkom Group
or outside the Telkom Group (third party), the Audit
Committee cooperated with IS Center Unit which has
perfected the Whistleblower application system so that
it may be easily accessed from anywhere through the
internet access and the operation has been launched
since October 1, 2016.
CoMMIttee For noMInatIon anD reMUneratIon
Committee for Nomination and Remuneration constitutes the committee formed to assist the Board of Commissioners
to supervise the determination of qualification and the process of nomination as well as remuneration of the Board of
Commissioners, the Board of Directors and the Executives. This committee has an important role in the implementation
of GCG principles, especially to ensure the selection process and the making of remuneration policies according to the
professional consideration without any pressure from other parties.
Composition of the Committee for nomination and remuneration
Pursuant to the provisions in the regulation of OJK No.34/POJK.04/2015 regarding the Committee for Nomination
and Remuneration, Member of Committee for Nomination and Remuneration shall consist at least 3 persons and one
of them is the Independent Commissioner who also serves as the chairman of the Committee for Nomination and
Remuneration. Pursuant to such OJK Regulation, the Board of Commissioners issued the decision of the Board of
Commissioners No.06/KEP/DK/2016 dated April 25, 2016 regarding the Composition of Membership of the Committee
for Nomination and Remuneration Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk which stipulates
that the Member of Committee for Nomination and Remuneration is as follows.
table of the Composition of the Committee for nomination and remuneration
title
Member’s name
Duties of each member
Chairman/ Member
Margiyono Darsasumarja/Independent
To be
responsible
to give
the directions
Commissioner
and coordination of the
implementation of
Secretary
Member
Committee’s duty.
Ario Guntoro/Secretary of the Board of
To be responsible to give and manage the
Commissioners
administration and documentation of the Committee
Pontas Tambunan*/Commissioner
To be responsible to coordinate the inputs coming
Hadiyanto */Commissioner
from the parties that has relationship with the
Dolfie Othniel Fredric Palit*/Commissioner
controlling shareholders in relation to the issue of
Rinaldi Firmansyah*/Independent Commissioner
nomination and remuneration.
Remarks: *profile of member of KNR can be seen on the profile of the Board of Commissioners
Pamiyati Pamela Johanna Waluyo*/Independent
Commissioner
195
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS profile of Member of Knr who has no double
title as the Board of Commissioners
to serving as the Secretary, from 2004 to 2013 he worked
as the Secretary of the Committee for the Planning and Risk
Evaluation and Monitoring (KEMPR) of PT Telkom Indonesia
ario Guntoro Secretary of Knr
: Prabumulih, 27 January 1970
Date of Birth
Age
: 47 years.
Citizenship and Domicile
Indonesian Citizen, domicile in Indonesia
title and Basis of appointment
Decision of the Board of Commissioners No.15/KEP/
DK/2013 dated December 16, 2013
term of Service
Until presently
education
Strata-1 (S1), Sarjana Ekonomi (SE).
Career experience
Career Experience
Ario Guntoro is a professional with a broad experience in
the sector of finance, investment and banking. After making
experience in the sector of national private banking since
1994 to 1999 as the Corporate Officer to the Brand Manager,
Ario Guntoro worked for the National Banking Recovery
Body Nasional (“BPPN”) since 1999 to 2004, with the last
position as Assistant Vice President of HIPA Division, in 2004
he worked as the special advisor in PT PPA (Persero). Prior
196
(Persero) Tbk.
Duties and responsibilities of Knr
Duties and responsibilities of the Committee for the
Nomination and Remuneration are as follows:
1. To prepare the policy, criteria and selection needed
for the strategic titles within the Company namely the
one title below the Director and Executive (member
of the Board of Directors and member of the Board of
Commissioners) consolidated subsidiaries that refer to
the principles of good corporate governance.
2. To assist the Board of Commissioners together with or
through the consultation with the Board of Directors
to select the candidate for strategic titles within the
Company (member of the Board of Directors and
member of the Board of Commissioners) consolidated
subsidiaries.
3. To give recommendations to the Board of Commissioners
to be conveyed to the holder of series A Dwiwarna shares
regarding:
a. The composition of title of member of the Board of
Directors.
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
b. The succession planning of members of the Board of
Remuneration shall be conducted regularly at least 1
Directors.
(one) time within 4 (four) months. In 2016, the Committee
c. Assessment based on the parameter that has
for Nomination and Remuneration has held 23 meetings,
been prepared as the evaluation material for the
including 12 times of circular meeting.
development of capability of members of the Board
of Directors.
Guideline/Charter of Knr (Charter Knr)
name
total
Meetings
total
attendance
Committee for Nomination and Remuneration has working
guidelines in place namely the Regulation of OJK No.34/
POJK.04/2015 regarding the Committee for Nomination
and Remuneration of Issuer of Public Company and Charter
Margiyono Darsasumarja
Ario Guntoro
Hendri Saparini
Hadiyanto
of the Committee for Nomination and Remuneration
Pontas Tambunan
which was stipulated through the decision of the Board
Dolfie Othniel Fredric Palit
of Commissioners No.06/KEP/DK/2016 dated April 25,
2016 regarding the Composition of Membership of the
Committee for Nomination and Remuneration Perusahaan
Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk.
Rinaldi Firmansyah
Pamela Johanna Waluyo
23
23
23
23
15
23
23
23
22
23
23
20
12
13
21
23
percentage
of
attendance
(%)
96%
100%
100%
87%
80%
57%
91%
100%
Independence of the Committee for
nomination and remuneration
The Committee for Nomination and Remuneration, pursuant
to the Regulation of OJK, shall at least consist of 3 persons
chaired by the Independent Commissioner, meanwhile,
two other members may come from the member of the
Board of Commissioners, company’s external party, or the
management below the Board of Directors. In addition
to it, there are requirements for members of Committee
for Nomination and Remuneration that come from the
Company’s external parties. Such requirements are:
1. They are not affiliated to the Company, members of the
Board of Commissioners, or Major Shareholders of the
Company;
2. They have the experience in relation to the Nomination
and/or Remuneration; and
3. They do not have double titles as a member of other
Committee in the Company
education and training of Knr
In the financial year of 2016 the Committee for Nomination
and Remuneration has not conducted any education and
training to its member to improve the competence and
capability of the members of Committee, this is because
of all processes of remuneration proposals are conducted
by the professional independent consultant.
the Implementation of Knr’s activities
The Committee for Nomination and Remuneration in the
financial year of 2016 has conducted activities to assist the
implementation of duties of the Board of Commissioners
in the Nomination and Remuneration sector. In the
financial year of 2016 the Committee for Nomination and
Remuneration has conducted the duties by producing the
decisions of Committee for Nomination and Remuneration
which among others are:
Any member of Committee
for Nomination and
no Letter/Decision
Remuneration must comply with the
independence
1.
principle in performing their duties. Therefore, member of
Committee for Nomination and Remuneration has made a
statement on the integrity and independence as stated in a
statement letter signed by all members of the Committee
for Nomination and Remuneration.
Meeting of the Committee for nomination
and remuneration
Pursuant to the Regulation of the Financial Service
Authority
No.34/POJK.04/2014
regarding
the
Committee for Nomination and Remuneration it is stated
that the Meeting of the Committee for Nomination and
2.
3.
Letter of the Board of Commissioners
No.120/SRT/DK/2016/RHS regarding the
Determination of Salary/Honorarium,
Allowance and Facility for 2016 as well as
Tantiem for the Performance in Financial
Year of 2015
Letter of the Board of Commissioners
No.136/SRT/DK/2016/RHS regarding the
Proposal to Change the Member of the
Board of Commissioners of PT Telkomsel
Decision of the Board of Commissioners
No.11/KEP/DK/2016/RHS regarding the
Grant of Business Trip Allowance for the
Secretary of the Board of Commissioners,
Member of Committee Who is not the
Member of the Board of Commissioners
as well as Staff of the Secretariat of the
Board of Commissioners
Date
June 29, 2016
August 11 2016
November 9, 2016
197
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS CoMMIttee For tHe pLannInG
evaLUatIon anD
anD rISK
MonItorInG
profile of Member of KeMpr
outside the Member of the Board of
Commissioners
Committee for the Planning and Risk Evaluation and
Monitoring constitutes a committee formed by the Board
Sri Hartati rahayu
Date of Birth
: Majalengka, December 21, 1971
of Commissioners with the purpose to assist the duties of
Age
: 45 years old
the Board of Commissioners in the sector of risk planning,
management and evaluation.
Citizenship and Domicile
Indonesian citizen, domiciled in Indonesia
Composition of KeMpr
Membership composition of the Committee for the
Planning and Risk Evaluation and Monitoring (KEMPR)
was determined pursuant to the Decision of the Board
of Commissioners No.12/KEP/DK/2016 dated November
29, 2016 regarding the Membership Composition of the
Committee for the Planning and Risk Evaluation and
Monitoring of Telkom. Below is the names and term of
service of the membership of Committee for the Planning
and Risk Evaluation and Monitoring.
table of Composition of Committee for the
planning and risk evaluation and Monitoring
title
name
Chairman
of KEMPR
Hadiyanto*/
Commissioner
term of
Service
Starting
from
February
2, 2015
Duties of each
Member
To give the direction, to
coordinate and monitor
the
implementation of
duties of all Members of
Committee.
Member
of KEMPR
Dolfie Othniel
Fredric Palit*/
Commissioner
Starting
from May
12, 2015
Member
of KEMPR
Margiyono
Darsasumarja*/
Commissioner
Starting
from May
12, 2015
Member
of KEMPR
Pamiyati
Pamela
Johanna
Waluyo*/
Independent
Commissioner
Member
of KEMPR
Sri Hartati
Rahayu
Starting
from May
12, 2015
Starting
from
March 31,
2016
conduct
RJPP/CSS,
the
To
and
supervision
towards
monitoring
implementation
the
RKAP
of
and the enterprise risk
management as well as
implementation of
the
initiative
for the non-
organic growth.
review,
To give
the
evaluation and
report
in the sector of legal,
compliance as well as risk
control to support the
implementation of duties
of supervision of
the
Board of Commissioners
towards the management
of
Company
conducted by the Board
of Directors.
the
Remarks: * profile of the Members of KEMPR can be seen on the
profile of the Board of Commissioners.
198
title and Basis of appointment
Independen Member based on Decision of the Board of
Commissioners No.12/KEP/DK/2016 dated December 16,
2013
term of Service
Until presently
education
S1 of Law in Padjajaran University (1995), Postgraduate
degree in Banking Law, Law of Finance and Investments
in Emerging Economies, Legal Aspects of International
Finance and Trade Law (LL.M Banking & Finance Law) in
London School of Economics and Political Science (LSE),
London, United Kingdom (1999).
Career experience
Sri Hartati Rahayu started her professional career in 1995.
In the last five years, Sri Hartati Rahayu performed a series
of duties/career especially in the finance and banking
sector, among others as the Member of independent
Audit Committee and Risk Monitoring Committee of PT
Bank DBS Indonesia (July 2010 – July 2011), Head of Legal
and Corporate Secretary of PT Bank Barclays Indonesia
(November 2008 – June 2009), Vice President of Global
Consumer Group Legal Counsel of CitiGroup Indonesia –
Citibank N.A. (October 2002 – March 2005).
Duties and responsibilities of KeMpr Duties
and responsibilities of KeMpr
Committee for the Planning and Risk Evaluation and
Monitoring has the following duties and responsibilities.
1. To conduct a comprehensive evaluation upon the
proposal of the Company’s Long Term Plan (“RJPP”) or
CSS and Company’s Budget Activity Plan as submitted
by the Board of Directors;
2. To conduct the evaluation towards the implementation
of RJPP and RKAP to be in line with the target of
RJPP and RKAP as have been ratified by the Board of
Commissioners; and
3. To conduct the monitoring towards the implementation
of enterprise risk management within the Company.
Guideline/Charter of KeMpr
KeMpr)
(Charter
KEMPR was formed by the Board of Commissioners to
assist the duties of the Board of Commissioners pursuant
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
to the scope of duties as stipulated under charter KEMPR.
Charter KEMPR is stated in the Decision of the Board of
Commissioners No.04/KEP/DK/2011 dated March 24, 2011
regarding the Guideline for the Work Implementation
(Charter) of the Committee for the Planning and Risk
Evaluation and Monitoring of the Company (Persero) PT
Telekomunikasi Indonesia, Tbk such decision stipulates
among others the formation and appointment of members;
KeMpr’s Meeting
In 2016, KEMPR conducted 10 Committee meetings
attended by the members who are members of the Board
of Commissioners and non-members of the Board of
Commissioners, with the following detail of attendance:
membership structure and requirements; duties, obligations
and authorities; scope of the work implementation; meeting,
name
reporting, term of service and funding.
Independence of KeMpr
KEMPR Committee constitutes the Committee that is not
mandatorily formed by the company according to the
Hadiyanto
Dolfie Othniel F.P*
Margiyono D.S
Pamiyati Pamela J.W
Sri Hartati Rahayu**
regulation. However, this does not mean that KEMPR is
Rustanto Hadimartono***
not independent in performing its duties. Any Member of
Remarks :
total attendance percentage of
attendance (%)
9
0
10
10
8
2
90%
0%
100%
100%
100%
100%
KEMPR must comply with the independence principle in
performing the duties. This has been stipulated under the
charter KEMPR Chapter 4 point 4.b.
*Was not able to attend the meeting due to the same schedule with the state duty
**Started as of 31 March 2016
***Terminated as of 31 March 2016
education and training of KeMpr
In the financial year of 2016 education and training have been given to the Members of KEMPR in order to improve the
competence of the Member of KEMPR. Education and training that have been conducted by KEMPR for the financial
year of 2016 are among others:
no Date
name of training
organizer
1.
28-29 March 2016
2.
11-12 October 2016
ERM in the Digital Age
Conference
Pacific Conference
remarks
-
Practical Risk Appetite and Risk
Tolerance Conference
Institute of Risk Management
Also as the education/training
from Audit Committee
3.
4.
9-11 November 2016
Payment Disruptors
Terappinn Training
7 December 2016
Risk Governance Master Class
Training & Certification
Enterprise Risk Management
Academy
5.
8-9 December 20162016
Bali ERM 2016 International
Conference
Enterprise Risk Management
Academy
-
-
-
199
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Implementation of KeMpr’s activities
Pursuant to charter KEMPR, the Decision of the Board
2. Company’s Work and Budget plan as well
as Capital expenditure
a. Monitoring focus of RKAP and Capital Expenditure
of Commissioners No.02/KEP/DK/2013 dated March 27,
of 2016
2013 regarding Certain Action of the Board of Directors
In the implementation of RKAP 2016, the focus
that Must First Obtain a Written Approval from the Board
of monitoring of KEMPR is among others to
of Commissioners, as well as Decision of the Board of
penetrate the broadband business, the monitoring
Commissioners No.09/KEP/DK/2015 dated August 31,
of realization of capital expenditure, as well as the
2016 regarding Standard Operating Procedures (SOP)
management of subsidiaries.
In Relation to the Process of Approval from the Board
of Commissioners, the scope of works of KEMPR shall
The penetration of broadband business conducted
consist of:
1. Company’s Long term plan (“rJpp”)
a. Evaluation of RJPP 2016 -2020
In RJPP 2016-2020, the Company’s transformation to
the customer facing unit (CFU)-based organization
is supported by the consolidation of
which
functional unit (FU) became the critical point in the
monitoring of KEMPR. The change of Company’s
business management was conducted as the effort
to consolidate Company’s resources spread in
Telkom unconsolidated and the subsidiaries as well
as other affiliated company. Such consolidation is
the key for the improvement of Company’s value.
On the other hand, the consolidation is expected
to synergize the Company and other SOE and or
other domestic relevant industry actors.
b. Preparation of RJPP 2017-2021
The change of telecommunication industry map
which is very influenced by the growth of digital
business has pushed the Company to sharpen the
business direction in the future. In addition to it,
Company’s business direction’s sharpening is also
to response the demand to obtain and/or create
a new source of growth of the Company, the
change of regulation in telecommunication sector,
competition within the industry. According to
KEMPR, the business direction’s sharpening in the
next five years needs to consider the Company’s
external and internal risk.
200
by Telkom unconsolidated or its subsidiaries
constitutes one of the backbones of Company’s
growth in the future. The company has the portfolio
of fixed broadband and mobile broadband which
can be synergized to fulfill the need of people
for the seamless and high quality service. KEMPR
notes the necessity to improve the network quality,
preciseness and speed of customer’s complaint, as
well as the determination of competitive price.
On the side of capital expenditure, the monitoring
for the absorption of capital expenditure does
not only refer to the value of budget that has
been realized, but also to support the Company
to organize the evaluation process of each rupiah
in the capital expenditure budget that has been
released. The said evaluation
implementation
also needs to be supported with the information
technology that is capable to validate the capital
expenditure plan with the realization of business
plan from the capital expenditure of the Company.
In terms of the management of subsidiaries,
KEMPR is of the view that it requires prudence in
the transformation process of the management
of subsidiaries in the scheme of CFU – FU,
interaction among the subsidiaries, or between
the subsidiary and Telkom unconsolidated, as well
as the resources allocation either financial or non-
financial.
b. Evaluation to the Proposal of RKAP and Capital
Expenditure of 2017
After successfully recording the double-digit
growth for the revenue pursuant to RKAP 2016,
RKAP 2017 was prepared in the spirit to improve the
achievement in 2016. In the preparation of RKAP
and Capital Expenditure of 2017, it is understood
that it is necessary to have an improvement in the
management of costs, an improvement of synergy
value in Telkom Group, and sharpening of inorganic
initiatives which are expected to become the new
source of growth to the Company.
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
3. enterprise risk Management
The monitoring of the update of Company’s risk profile constitutes one of the approaches conducted by KEMPR in
conducting the evaluation for the implementation of Enterprise Risk Management. According to CSS 2016-2020,
risk categories that may get the attention of the Company are among others the strategic risks in relation to the
competition pressure and inorganic initiatives, and operational risks in relation to the risk of leak of revenue & fraud
from Company’s external parties, as well as the weakness in the project management. Based on the data submitted
by the management, the risk in relation to the competition, inorganic initiative, and the leak of revenue as well as
external fraud still need the improvement of mitigation from the Company.
4. Certain action from the Board of Directors that requires the approval from the Board of
Commissioners
In 2016, KEMPR has assisted the Board of Commissioners in reviewing the proposal of strategic plans as submitted
by the Board of Directors, among others:
a. The Release of budget of capital expenditure of 2016;
b. The implementation of external funding of the Company;
c. Strategic fit of corporate action in the digital telecommunication portfolio.
BoarD oF DIreCtorS
Board of Directors constitutes the Company’s organ having collective duties and responsibilities in managing the
Company pursuant to the provisions of Company’s Articles of Association. In performing the duties, members of Board
of Directors shall act and decide any policy pursuant to the duty and authority of each member.
Composition of the Board of Directors
In 2016, there was a change of composition of Telkom’s Board of Directors. Pursuant to the resolutions of the Annual
General Meeting of Shareholders (AGMS) on April 22, 2016, Mr. Heri Sunaryadi was respectfully discharged from his
title and was replaced by Mr. Harry M. Zen as the Finance Director. In addition to it, pursuant to Decision Letter of the
Minister of State-Owned Enterprise as the General Meeting of Shareholders of the Company (Persero) PT Angkasa Pura
II No.SK-227/MBU/09/2016 in relation to the appointment of Muhammad Awaluddin as the President Director of PT
Angkasa Pura II, then the position of Muhammad Awaluddin as the Director of EBIS of Telkom was temporarily replaced
by Honesti Basyir as per September 13, 2016. Therefore, the composition of the Board of Directors for the financial year
of 2015 and 2016 may be seen in the following table.
table of Composition of Board of Directors of pt telkom per 31 December 2015
no
naMe
1
2
3
4
5
6
7
8
Alex J. Sinaga
Heri Sunaryadi
Indra Utoyo
Muhammad Awaluddin
Honesty Basyir
Herdy Rosadi Harman
Abdus Somad Arief
Dian Rachmawan
tItLe
President Director
Director of KEU
Director of ISP
Director of EBIS
Director of WINS
Director of HCM
Director of NITS
Director of CONS
appoIntMent
DISCHarGe Date
2014
2014
2012
2012
2012
2014
2014
2014
AGMS 2019
APRIL 22, 2016
AGMS 2017
September 13, 2016
AGMS 2017
AGMS 2019
AGMS 2019
AGMS 2019
Remarks: KEU (Finance), ISP (Innovation & Strategic Portfolio), EBIS (Enterprise & Business Service), WINS (Wholesale and International Service),
HCM (Human Capital Management), NITS (Network, IT & Solution), and CONS (Consumer Service).
201
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS table of Composition of the Board of Directors of pt telkom per 31 December 2016
no
naMe
tItLe
appoIntMent
DISCHarGe Date
1
2
3
4
5
6
7
8
9
Alex J. Sinaga
Harry M. Zen
Heri Sunaryadi
Indra Utoyo
Muhammad Awaluddin
Honesty Basyir
Herdy Rosadi Harman
Abdus Somad Arief
Dian Rachmawan
President Director
Director of KEU
Director of KEU
Director of DSP
Director of EBIS
Director of WIBS
Director of HCM
Director of NITS
Director of CONS
2014
2016
2014
2012
2012
2012
2014
2014
2014
AGMS 2019
AGMS 2021
April 22, 2016
AGMS 2017
September 13, 2016
AGMS 2017
AGMS 2019
AGMS 2019
AGMS 2019
Remarks: KEU (Finance), DSP (Digital & Strategic Portfolio), EBIS (Enterprise & Business Service), WINS (Wholesale and International Service), HCM
(Human Capital Management), NITS (Network, IT & Solution), and CONS (Consumer Service).
Double title Board of Directors
Some members of Telkom’s Board of Directors serve double titles, either in Telkom or in Telkom’s subsidiary. Complete
information regarding the double title Board of Directors may be seen in the following table.
table of Double title of the Board of Directors per 31 December 2016
no
naMe
pt teLKoM
tItLe
otHer tItLe
Alex J. Sinaga
Harry M. Zen
President Director
Director of KEU
None
None
SUBSIDIarY
President Commissioner of Telkomsel
President Commissioner of Telkom
Property, Commissioner of Telkomsel
Indra Utoyo
Director of DSP
None
Commissioner of Telkom Metra, President
Commissioner of Mdi
Honesti Basyir
Director of WIBS
Plt Dir EBIS
President Commissioner of Telin, President
Herdy Rosadi Harman
Director of HCM
Abdus Somad Arief
Director of NITS
None
None
Commissioner of Metra
Commissioner of Telkom Property
President Commissioner of Telkom Infra,
Commissioner of Teltranet
Dian Rachmawan
Director of CONS
None
President Commissioner of Telkom Akses
1
2
3
4
5
6
7
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Duties and responsibilities of the Board of
Directors
the Board Charter of the Board of Directors
In performing the duties, responsibilities and authorities
1. To Conduct and be responsible for the management
in managing the Company, Telkom’s Board of Directors
of the Company for the Company’s interest pursuant
shall refer to the Board Charter of Board of Directors
to the purposes and objectives of the Company as
No.PD.604.00/r.00/HK000/C00-D0030000/2011 dated
stipulated under the articles of association.
July 11, 2011. The Board Charter of Board of Directors
2. To organize the annual GMS and other GMS as
shall consist agreements which are among others in the
stipulated under the provisions of laws and regulations
form of stipulation of mechanism and division of works
and articles of association.
among members of the Board of Directors which are
3. To conduct the duties and responsibilities in good
not stipulated under Company’s Articles of Association
faith, full responsibility, and prudentially.
or the prevailing laws and regulations. The purpose is to
4. To form the Committee to support the effectiveness
improve and coordinate the performance of the Board of
of the implementation of duties and responsibilities of
Directors as well as to optimize the utilization of working
the Board of Directors.
time of the Board of Directors in managing the Company.
5. To evaluate the performance of the committee that has
The duty of each member of Board of Directors shall be
been formed at the end of financial year
in line with the activities that constitute part of his/her
authorities of the Board of Directors
responsibilities as follows.
A. President Director (CEO Telkom Group)
1. Setiap anggota Direksi berwenang bertindak untuk
1. To coordinate
the process,
to structure or
dan atas nama Direksi dalam mewakili Perseroan di
reconstruct the corporate philosophical aspects
dalam dan di luar pengadilan tentang segala hal dan
which shall include but not limited to the vision,
dalam segala kejadian, mengikat Perseroan dengan
mission, objective, corporate culture as well as
pihak lain dengan Perseroan, serta menjalankan segala
leadership architecture;
tindakan baik yang mengenai kepengurusan maupun
2. To formulate and state the strategic direction
kepemilikan dengan pembatasan yang terdapat dalam
in order to enable the Company to realize the
Anggaran Dasar dan peraturan perundang-undangan
sustainable competitive growth in all Telkom’s
di bidang pasar modal.
business portfolios, and risk control as well as
2. Tanpa mengurangi tanggung jawabnya Direksi untuk
interfacing with external constituent;
perbuatan tertentu dapat mengangkat seorang atau
3. To control the function of strategic planning within
lebih sebagai kuasanya dengan syarat yang ditentukan
Telkom as a group and direct the effort to grow by
oleh Direksi dalam suatu surat kuasa khusus.
focusing to the new business portfolio;
3. Untuk
tindakan
tertentu Direksi harus
terlebih
4. To control the corporate direction in the effort
dahulu mendapatkan persetujuan tertulis dari Dewan
for driving new business, entering/developing
Komisaris dan/atau RUPS sebagaimana dijelaskan
new market as well as
internationalization/
dalam Anggaran Dasar Perseroan.
regionalization;
responsibilities of the Board of Directors
Any member of the Board of Directors shall be jointly
responsible for all Company’s losses caused by the mistake
or negligence of the member of Board of Directors in
performing its duties. Members of Board of Directors shall
not be liable for the Company’s loss if they can prove that:
1.1. Such loss is not caused by their mistake or negligence;
2. They have performed actions in good faith, full
responsibility, and prudentially for the interest and
based on the purpose and objective of the Company;
3. They do not have any conflict of interest either directly
or indirectly for the management activities causing the
loss; and
4. The have taken the action to prevent the occurrence or
continuation of such loss.
5. To control the management of strategic aspect
of the functions of Finance, human capital and
innovation & strategic portfolio in all business
portfolio implemented by Telkom as a group;
6. To lead the process of leader development of
Telkom Group as well as to appoint and terminate
the title holder in certain position pursuant to the
stipulation of career management as determined as
well as leader development for Telkom as a group;
7. To periodically report the performance of the
Company pursuant to the provisions prevail for
public company.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS B. Director of Finance (“KEU”)
5. To determine the innovation strategy in order
1. To determine the conception and formulation
to “explore” to get new source of growth for the
of Long-Term Plan of Company’s Finance within
development of Telkom Group’s business portfolio;
Telkom as a group.
6. To determine the parenting strategy to harmonize
2. To facilitate the process for the formulation of the
and optimize the capability of Telkom Group’s
concept of corporate level strategy especially the
business entities in improving the Value of the
financial & asset perspective for the aspect of among
Company;
others, but not limited to the strategic budgeting,
7. To determine the policy, good governance, and
business &
investment, parenting
strategy,
mechanism for the innovation for the development
subsidiary performance, capital management and
of Telkom Group’s business portfolio;
supply management.
8. To determine the policy, good governance and
3. To determine the functional strategy and policy in
mechanism to manage the synergy of Telkom
the financial and asset sectors, which shall cover
Group;
among others, but not limited to the financial policy,
9. To conduct the advisory function in the process
asset management policy, supply management
to set the strategy on the corporate level strategy,
policy and financial system support policy;
especially for the matters in relation to the aspect of
4. To determine the functional strategy and policy
business portfolio development;
in the sector of risk management to ensure the
10. To ensure the effectiveness of the management of
effectiveness of business continuity management;
5. To manage
investor relations to protect the
all risks in the business process within all units under
the supervision of the Directorate of ISP.
psychology of investors;
6. To determine the policy of good governance, and
D. Director of Human Capital Management (“HCM”)
mechanism of management of financial accounting
1. To determine the conception and formulation of
(accounting sector
including the presentation
Long-Term Plan of Human Capital and Master Plan
of financial reporting), management accounting
of Human Capital as a group;
(budgeting sector) and corporate finance supply
2. To facilitate the formulation process of corporate
and risk as well as the control of its implementation;
level strategy concept especially for the aspect in
7. To determine the policy, good governance and
relation to the development of center of excellence,
mechanism of the management of Company’s
for people aspect, human capital, organization
budgeting process (RKAP).
design corporate culture and leadership architecture
8. To implement advisory functions in the determination
and industrial relation;.
of corporate level strategies, especially for the
3. To determine the functional strategy and policy in
matters related to the aspect of financial and supply
the sector of human capital, among others but not
resources of Telkom as a group.
limited to the sector of human capital development,
9. To ensure the effectiveness of management of all
human capital system, human capital operation,
risks in the business process within the scope of all
organization development, and industrial relation.
units under the supervision of Directorate of KEU.
4. To prepare and execute the program of Telkom
Smart Office;
C. Director of Digital & Strategic Portfolio (“DSP”)
5. To determine the policy, good governance, and
1. To determine the conception and formulation of
mechanism to manage and the planning as well
Company’s Long-Term Plan (corporate strategic
as the management of resources (development,
scenario).
empowerment and management of HR) and
2. To determine the policies on good governance and
organization development;
mechanism to manage the Company’s planning and
6. To determine the policy, good governance, and
its strategy (the policy for the setting of planning
mechanism of development and inter-relation with
level and its strategy - corporate level, business level
the entity/institution that relates to the management
and functional level);
of HR which are among others but not limited to
3. To determine the strategy and policy of Telkom
the institutions that manage the pension fund, the
Group’s business portfolio;
management of employees and retired people, the
4. To determine the strategy, policy and recommendation
management to develop the skill and competence
of corporate action and strategic investment for
Telkom Group’s business development;
or educational institution as well as labor union
institution;
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 7. To conduct the partnership and community
function in consumer segment;
development program;
4. To determine the policy, good governance and
8. To conduct
the advisory
function
in
the
mechanism of the management of sales function
determination of strategy on the corporate level
and/or channel partnership in consumer segment;
strategy, especially those that relate to HR of Telkom
5. To determine the policy, good governance and
as a group;
mechanism of the management of customer
9. To ensure the effectiveness of management of all
relationship management in consumer segment;
risks in the business process within all units under
6. To ensure the effectiveness of management of all
supervision of the Directorate of HCM.
risks in the business process of all units under the
supervisions of the Directorate of Consumer Service.
E. Director of Network, IT & Solution (“NITS”)
1. To determine the planning and business strategy
G. Director of Enterprise Business Service (“EBIS”)
to leverage the capability of Company’s resources
1. To determine the planning and business strategy
in order
to grow/make bigger/“exploit”
the
to leverage the capability of Company’s resources
“established”
business/service
through
the
in the realization of competitive advantage to win
utilization of infrastructure, IT and solution to
the competition and long-term growth of business
support the business portfolio of Telkom Group in
portfolio in the corporate segment (enterprise,
synergy;
government and business) within the scope of
2. To determine the policy, good governance and
mechanism to utilize the infrastructure/network to
Telkom as a group;
2. To determine the policy and mechanism of parenting
support the business portfolio of Telkom Group;
in order to create the value of the Company by
3. To determine the policy, good governance and
optimizing and harmonizing the
inter-relation
mechanism to utilize IT to support the growth of
between “parent” and all entities that manage
business portfolio of Telkom Group;
the business of corporate segment (enterprise,
4. To determine the policy, good governance and
government and business) within the scope of
mechanism to create the best performance upon
Telkom as a group;
the service/solution that supports the sustainable
3. To determine the policy, good governance and
competitive growth of Telkom Group;
mechanism of the management of marketing
5. To set and control the mechanism of “parenting”
function in the corporate segment (enterprise,
which is adjusted with parenting strategy to all
government and business);
units under the supervision of Directorate of NITS
4. To determine the policy, good governance and
and or other unit that is directly involved in the
mechanism of the management of sales function
implementation process of utilization activities and
and/or account management in the corporate
infrastructure operation;
segment (enterprise, government and business);
6. To ensure the effectiveness of management of all
5. To determine the policy, good governance and
risks in the business process of all units under the
mechanism of the management of customer
supervisions of the Directorate of NITS.
relationship management in the corporate segment
(enterprise, government and business);
F. Director of Consumer Service (“CONS”)
6. To ensure the effectiveness of management of all
1. To determine the planning and business strategy
risks in the business process of all units under the
to leverage the capability of Company’s resources
supervisions of the Directorate of EBIS.
in realizing the competitive advantage to win the
competition and the long-term growth of business
H. Director of Wholesale & International Business Service
portfolio in the consumer segments (consumer
(“WIBS”)
home services and consumer personal services)
1. To determine the planning and business strategy
within the scope of Telkom as a group;
to leverage the capability of Company’s resources
2. To determine the policy and mechanism of
in the realization of competitive advantage to win
parenting in order to create value of the Company
the competition and long-term growth of business
by optimizing and harmonizing the interrelation
portfolio in the wholesale & international segment
between “parent” and all entities that manage the
within the scope of Telkom as a group;
business operation of the consumer segment within
the scope of Telkom as a group;
3. To determine policy, good governance and
mechanism of the management of marketing
2. To determine the policy and mechanism of parenting
in order to create the value of the Company by
inter-relation
optimizing and harmonizing the
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS between “parent” and all entities that manage the
business of wholesale & international segment
within the scope of Telkom as a group;
3. To determine policy, good governance and
mechanism of management of marketing function
in the wholesale & international segment;
4. To determine the policy, good governance and
mechanism of the management of sales function
and/or account management in the wholesale &
international segment;
5. To determine the policy, good governance and
mechanism of the management of customer
relationship management
in the wholesale &
international segment;
6. To ensure the effectiveness of management of all
risks in the business process of all units under the
supervisions of Directorate of WINS.
Board of Directors’ Meeting
Pursuant to the prevailing provisions applied to public
companies and the Board Charter of Board of Directors
(BoD Charter), the Board of Directors must conduct a
periodical internal meeting at least 1 (one) time within
a month and it may also be conducted at any time as
deemed necessary. Moreover, the Board of Directors shall
also be obliged to organize joint meeting with the Board
of Commissioners at least 1 (one) time within 4 (four)
months and it may also be held at any time as deemed
necessary. Joint meeting by the Board of Directors and
Board of Commissioners within the Company shall also be
referred to as the Joint Meeting.
The meeting quorum shall be reached if more than half
of members of Board of Directors are present or legally
represented in such meeting. Any member of Board of
Directors that present shall have a casting vote (and one
vote for any other Director that is being represented). The
decision making in the Board of Directors’ meeting shall
be based on the deliberation to reach a consensus. If the
consensus cannot be reached, then the resolution shall
be made based on the majority votes from members of
Board of Directors that are present.
In 2016, the Board of Directors’ meetings have been held
for 48 times with the agenda and attendance level of the
Board of Directors as follows.
table of agenda and attendance in the Board of Directors’ Meetings
no
Date
agenda
Board of Directors who were present
Dr
Ma
HMZ
aSa
HrH
HB
HS
January 5,
2016
1. Report : Progress of the preparation of the
v
Muster of the Work Readiness of Telkom Group
in 2016
2. Report : Performance of Operations & Revenue
for the MtD December 2015
3. Report on the Limited Agenda
v
v
v
v
January 12,
2016
1. Report : Recap of the Performance of Revenue
in 2015 and Operation for the MtD in January
2016
2. Report on the Limited Agenda
January 19,
2016
1. Report on the Performance of the Operations
and Revenue for the MtD in January 2016
2. Report of FU Finance: Management Report of
December 2015
3. Report on the Limited Agenda
January
26, 2016
1. Report on the Performance of the Operations
and Revenue for the MtD in January 2016
2. Report on the Limited Agenda
2 Februari
2016
1. Report on the Performance of the Operations
and Revenue for the MtD in January 2016
2. Report: Draft Annual Report for the financial
year of 2015
3. Report on the Format and Outline for the CFU/
FU-based Management Report of 2016
4. Report on the Limited Agenda
February
9, 2016
1. Report on the Performance of the Operations
and Revenue for the YtD of January and MtD
of February 2016
2. Report: CFU/FU-based Report AR-AP of
Telkom Group
3. Report on the Limited Agenda
IU
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
-
-
v
February
16, 2016
1. Report on the Performance of the Operations
v
v
v
v
and Revenue for the MtD of February 2016
2. Report: Management Report of January 2016
3. Report on the Limited Agenda
-
-
-
-
-
-
-
v
v
v
v
-
-
v
v
v
v
v
v
v
-
v
v
v
v
-
v
v
v
v
v
v
v
v
v
1
2
3
4
5
6
7
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS no
Date
agenda
8
9
February
23, 2016
March 1,
2016
1. Report on the Performance of the Operations
-
and Revenue for the MtD of February 2016
2. Report: Management Report of January 2016
3. Report on the Limited Agenda
1. Report on the Performance of the Operations
v
and Revenue for the MtD of February 2016
2. Update: E-Payment Business
3. Report on the Limited Agenda
10
March 8,
2016
1. Report on the Performance of the Operations
and Revenue for the YtD of February and MtD
v
v
v
v
v
v
v
v
v
v
v
v
of March 2016
2. Report: Comprehensive Program CSR of
Telkom Group
3. Report on the Limited Agenda
March 15,
2016
1. Report on the Performance of the Operations
and Revenue for the MtD of March 2016
2. Report on the Limited Agenda
March 22,
2016
1. Laporan Performansi Operasional & Revenue
MtD Maret 2016
2. Laporan Agenda Terbatas
March 29,
2016
1. Report on the Performance of the Operations
and Revenue for the MtD of March 2016
2. Report on the Limited Agenda
April 5,
2016
1. Report on the Performance of the Operations
and Revenue for the YtD of March 2016
2. Update: Partnership for the development of
FTTH/Indihome
3. Report: The Concept of Submarine Cable
Management of Telkom
4. Update on the Preparation of RAPIM of Telkom
Group I of 2016
5. Report on the Limited Agenda
1. Report on the Performance of the Operations
and Revenue for the MtD of April 2016
2. Report on the Limited Agenda
1. Report on the Performance of the Operations
and Revenue for the MtD of April 2016
2. Report on the Limited Agenda
1. Report on the Performance of the Operations
and Revenue for the MtD of April 2016
2. Report on the Limited Agenda
1. Report on the Performance of the Operations
and Revenue for the YtD of April & MtD of
May 2016
2. Update: Status of the rescue of Filling T3S and
the Readiness of Orbit Slot of T2
3. Report on the Limited Agenda
April 12,
2016
April 19,
2016
May 3,
2016
May 10,
2016
May 17,
2016
1.
1Report on the Performance of the Operations
and Revenue for the MtD of May 2016
2. Update: Progress of the Preparation of RAFI
2016
3. Report on the Limited Agenda
May 24,
2016
May 31,
2016
June 7,
2016
1. Report on the Performance of the Operations
and Revenue for the MtD of May 2016
2. Report on the Limited Agenda
1. Report on the Performance of the Operations
and Revenue for the MtD of May 2016
2. Report on the Operation of FU HCM and Site
Plan of Telkom Corporate University
3. Report on the Limited Agenda
1. Kick off Siaga RAFI Task Force Telkom Group
v
2016
2. Kick off CFU/FU Transfomation socialization
Team
3. Update BUMN Hadir untuk Negeri
11
12
13
14
15
16
17
18
19
20
21
22
IU
v
v
v
v
v
v
v
-
v
v
v
v
v
v
v
Board of Directors who were present
Dr
Ma
HMZ
aSa
HrH
HB
HS
v
v
v
v
v
-
v
v
v
v
-
-
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
-
v
v
-
-
-
-
-
-
-
-
-
v
v
v
v
v
v
-
-
v
v
v
v
v
v
v
v
v
-
v
v
v
-
v
v
v
v
v
v
v
v
v
v
-
v
v
v
v
v
v
v
v
v
v
v
v
v
-
v
v
v
v
v
v
v
v
v
v
v
-
v
-
-
-
-
-
-
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS no
Date
agenda
23
June 14,
2016
1. Update BUMN Hadir untuk Negeri Preparation
2. Report on the simulation of the Security of
v
Revenue from Indihome & Interconnection
3. Report on the Implementation Progress of the
Second Platform and Open STB
4. Report on the Limited Agenda
IU
v
Board of Directors who were present
Dr
Ma
HMZ
aSa
HrH
HB
HS
-
v
v
v
v
v
1. Report on the Performance of the Operations
v
v
v
v
v
v
v
v
and Revenue for the MtD of June 2016
2. Update on the Roadmap of Digital Service of
Telkom Group
3. Report on the Implementation Progress of the
Second Platform and Open STB
4. Report on the Limited Agenda
1. Report on the Performance of the Operations
v
v
v
v
v
v
v
v
24
June 21,
2016
25
June 28,
2016
July 19,
2016
and Revenue for the MtD of June 2016
2. Report of FU HCM & ISC organization Update
3. Update on the Theme and Scenario of Rapim
TG II 2016
4. Report on the Limited Agenda
1. Report on the Performance of the Operations
and Revenue for the YtD of June (Highlight) &
MtD of July 2016
2. Report FU HCM
3. Report on the Limited Agenda
August 9,
2016
1. Report on the Performance of the Operations
and Revenue for the YtD of July & MtD of
August 2016
2. Update on the Progress of Satellite
3. Update on the Organization of ISC
4. Update on the Positioning Subsidiary
Treatment
5. Report on the Limited Agenda
August 16,
2016
1. Report on the Performance of the Operations
and Revenue for the MtD of August 2016
2. Update Indonesia independence day
commemoration
August 23,
2016
1. Report on the Performance of the Operations
and Revenue for the MtD of August 2016
2. Report on the Limited Agenda
August 30,
2016
1. Report on the Performance of the Operations
and Revenue for the MtD of August 2016
2. Report on the Limited Agenda
September
6, 2016
1. Report on the Performance of the Operations
and Revenue for the YtD of August 2016
2. Report on the Limited Agenda
September
13, 2016
1. Report on the Performance of the Operations
and Revenue for the MtD of September 2016
2. Report of FU HCM
3. Report on the Limited Agenda
September
20, 2016
1. Report on the Performance of the Operations
and Revenue for the MtD of September 2016
2. Report on the Limited Agenda
September
23, 2016
1. Talent Management
2. Talent Remumeration
3. Key strategic position
4. Job family
5.
6. Pro Hire BP
Ingenium Scoring
September
30, 2016
1. Report on the Performance of the Operations
and Revenue for the MtD of September 2016
2. Report on the Limited Agenda
October 4,
2016
1. Report on the Performance of the Operations
and Revenue for the MtD of September 2016
2. Report on the Limited Agenda
v
v
v
v
v
v
v
v
v
v
v
v
v
-
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
-
v
v
v
v
v
v
v
-
-
-
-
-
v
v
v
v
-
v
v
v
v
v
v
v
v
v
v
-
v
v
-
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
-
-
-
-
-
-
-
-
-
-
-
-
-
-
26
27
28
29
30
31
32
33
34
35
36
208
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS no
Date
agenda
37
October 11,
2016
1. Report on the Performance of the Operations
and Revenue for the YtD of September & MtD
of October 2016
2. Update on the Theme and Scenario of Rapim
TG III 2016
3. Report on the Limited Agenda
Company’s Performance in September 2016 and
proposal of RKAP 2017
1. Report on the Performance of the Operations
and Revenue for the MtD of October 2016
2. Update on the Lesson Learnt from Kalibata:
People-Process-Tools Perspective
3. Report on the Limited Agenda
October
21, 2016
October
24, 2016
November
1, 2016
1. Report on the Performance of the Operations
and Revenue for the MtD of October 2016
2. Report on the Limited Agenda
November
8, 2016
1. Report on the Performance of the Operations
and Revenue for the YtD of October and MtD
of November 2016
2. Report on the Limited Agenda
November
16, 2016
1. Report on the Performance of the Operations
and Revenue for the `MtD of November 2016
2. Report on the Limited Agenda
November
24, 2016
1. Kick Off the Satgas of Telkom Group: Siaga
NaRu (Christmas and New Year) 2017
2. Report on the Performance of the Operations
and Revenue for the MtD of November 2016
3. Update KPKU Assessment Preparation
4. Report on the Limited Agenda
November
29, 2016
1. Report on the Performance of the Operations
and Revenue for the MtD of November 2016
2. Update KPKU Assessment Preparation
3. Report on the Limited Agenda
December
6, 2016
Report on the Performance of the Operations and
Revenue for the MtD of November 2016
December
13, 2016
1. Report on the Performance of the Operations
and Revenue for the MtD of December 2016
2. Lesson Learn preventive fault handling on Treg
IV report
3. Report FU HCM
4. Update Kesiapan Kerja 2017 Ceremony
5. Report on the Limited Agenda
IU
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
December
20, 2016
1. Report on the Performance of the Operations
and Revenue for the MtD of December 2016
v
v
2. Update KPKU Assessment Preparation
3. Update Kesiapan Kerja 2017 Ceremony
4. Report on the Limited Agenda
December
27, 2016
Report on the Performance of the Operations and
Revenue for the MtD of December 2016
-
-
38
39
40
41
42
43
44
45
46
47
48
Board of Directors who were present
Dr
Ma
HMZ
aSa
HrH
HB
HS
-
v
v
v
v
v
v
v
v
v
v
v
-
-
-
-
-
-
-
-
-
-
-
-
v
v
v
v
v
v
v
-
v
v
v
v
v
v
v
v
-
v
-
v
v
v
v
v
v
v
v
v
v
v
v
-
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Attendances
Total Meetings
Attendance Level of the Board of Commissioners (%)
45
48
93
43
48
89
41
48
85
30
31
96
29
32
90
38
48
79
45
48
93
44
48
91
14
16
87
Remarks: AJS (Alex J Sinaga), IU (Indra Utoyo), DR (Dian Rachmawan), MA (Muhammad Awaluddin), HMZ (Harry M Zen), ASA (Abdus Somad Arief),
HRH (Herdy Rosadi Harman), HB (Honesti Basyir), HS (Hari Sunaryadi).
Note:
HS was terminated pursuant to GMS resolution dated 22 April 2016
HMZ was appointed since the GMS resolution dated 22 April 2016
MA resigned since 13 September 2016
209
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
DIreCtorS reMUneratIon poLICY
procedure for Determining the remuneration
1
Knr by the instruction from
Board of Commissioners
create remuneration draft.
the result will be decide in
aGMS
3
5
4
aGMS
2
Knr ask Independent party
for Suggestion.
Independent party give its
suggestion to Knr
Board of Directors
remuneration Mechanism and
procedure
*KNR :Nomination and Remuneration Committee
The procedure for determining the remuneration of members of the board of directors of Telkom are as follows:
1. The Board of Commissioners requests the NRC to draft a remuneration proposal for the Directors.
2. The Nomination and Remuneration Committee requests an independent party to draw up a framework on the
remuneration of the Directors.
3. The Nomination and Remuneration Committee proposes the remuneration to the Board of Commissioners.
4. The Board of Commissioner proposes remuneration for the Directors the AGM.
5. The AGM delegates authority and power to the Board of Commissioners with the prior approval of Series A
Shareholders to determine the remuneration for the Board of Commissioner and the Directors.
Basis for the Determination and Structure of remuneration
The structure of the remuneration of the Directors is governed by the provisions of the Regulation of the State Minister
for State Owned Enterprises No.Per-04/MBU/2014 on Guidelines for the Determination of Income for Directors, Board of
Commissioner and Board of Trustees of SOEs. Based on the said regulation, the income component for members of the
Directors consists of:
1. Salaries;
2. Allowances;
3. Facilities;
4. Bonus/Incentive.
The determination of fixed income in the form of salaries, allowance and facilities given by considering the condition
of the Company. In the otehr hand bonus/incentive is an annual benefits based on the Company’s performance and
determined by the General Meeting of Shareholder.
210
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS amount of remuneration for the Members of the Board of Directors
In 2016, total remuneration paid to all the Company’s Board of Directors amounted to Rp121.8 billion. Taxes on the
remuneration paid by the Company amounted to Rp7.6 billion. Recapitulation of the remuneration of the Telkom’s
Board of Commissioners in 2016 is reflected in the following table.
table on the recapitulation of remuneration for telkom’s Board of Directors
Board of Directors
Alex J. Sinaga
Harry M. Zen *)
Indra Utoyo
Dian Rachmawan
Abdus Somad Arief
Herdy Rosadi Harman
Honesti Basyir
Heri Sunaryadi**)
Muhammad Awaluddin ***)
Salary
2.304
1.482
2.074
2.074
2.074
2.074
2.074
691
1.555
Bonuses
13.952
-
12.557
12.557
12.557
12.557
12.557
12.557
12.557
nilai (rp juta)
tHr
other allowances
176
158
158
158
158
158
158
-
158
300
215
300
300
300
300
300
100
225
total
16.732
1.855
15.089
15.089
15.089
15.089
15.089
13.348
14.496
Remark: Based on Minister of SOE Regulation No.04/2014, the allowance to be given in cash is residential allowance in the amount of Rp25 million a month
*) Start from April 22, 2016
**) Until April 22, 2016
***) Until September 2016
211
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Corporate SeCretarY
tasks and Duties of Corporate Secretary
1. Preparing and organizing GMS, including the material,
The Corporate Secretary is an organ of the company
particularly the Annual Report.
which has significant role in facilitating the company’s
2. Attending the Board of Directors’ meetings and joint
internal communication, make a connection between
meetings between the Board of Directors and the
the company and its shareholders, the Financial Services
Board of Directors.
Authority, and other stakeholders as well as ensuring
3. Managing and maintaining documents related to the
the Company’s compliance with the applicable rules and
regulations in the field of capital market.
Telkom has appointed a Vice President (“VP”) of
Company’s activities, including the GMS’s documents,
the Board of Directors’ minutes of meetings, the
minutes of joint meetings between the Board of
Directors and the Board of Commissioners, and other
Investor Relations who also perform tasks and duties of
important documents of the Comapny.
a Corporate Secretary in accordance with the Financial
4. Determining criteria regarding types and contents of
Services Regulation No.35/POJK.04/2014
regarding
Corporate Secretary of the Issuer Companies or Public
information that can be presented to the stakeholders,
including information that can be published as public
Companies. Investor Relations is responsible for preparing
documents.
the provision of information between the Company and
its Shareholders in accordance with the prescribed code
of conducts, and maintaining the systematic feedback
mechanism to the management in order to be able to
respond to the dynamics of the shareholders and the
capital markets with efficient, effective, and continuously.
Corporate Secretary Functions
According to Telkom’s Guidelines on GCG, the functions
of the Corporate Secretary are:
1. To Prepare and communicate information accurate,
complete, and timely regarding the performance and
prospect of the company to stakeholders.
2. To synergize with related units,
including the
subsidiaries,
for dissemination of
information
(socialization),
implementation, monitoring and
reviewing of GCG, and its implementation.
3. To assist the Board of Directors in various activities,
information, and documentation, among others:
a. Preparing the Register Book of Shareholders;
b. Attending the Board of Directors’ meetings and
preparing its minutes of meetings; and
c. Preparing and organizing GMS.
4. To publish the Company’s information in tactical,
strategic and timely manner.
212
profile of Corporate Secretary
andi Setiawan
Born
: June 6, 1978
Age
: 38
nationality and Domicile
Indonesian, domiciled in Indonesia.
position and appointment Basis
Corporate Secretary of the Company based on the
Directors Decision Letter
term of office
March 4, 2015 – present
education
He holds a Bachelor’s degree on Financial Management
(S-1) from University of Indonesia.
Career History
1. PT Pemeringkat Efek Indonesia as a Corporate Rating
Analyst (2004).
2. PT Bakrieland Development Tbk as a Manager of
Corporate Secretary (2007).
3. PT Summarecon Agung Tbk as a Manager of Investor
Relations (2010).
4. GM of Investor Relations at PT Telekomunikasi Selular
on January 2014.
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS training and education of Corporate Secretary
In order
improve
to
the competence of our Corporate Secretary/Investor Relations, along 2016
the Company has held various
trainings designated
to
the
Investor Relations unit as
follows:
training program
Date
organizer
Global Mind Leaders Program: The Biology of Corporate
Survival
May 18, 2016
Intellectual Business Community
Certified Investor Relation
May 23-26, 2016
Indonesia Investor Relations Institute
Finance 101 for IR and Corporate Communication
Key to Successful Investor Presentation
2016 NIRI Annual Conference
June 4, 2016
June 4, 2016
National Investor Relations Institute
National Investor Relations Institute
June 5-8, 2016
National Investor Relations Institute
9th Annual Depositary Receipts Issuers’ Conference Asia
Pasific
June 16-19, 2016
BNY Mellon
Managing the High Intencity Workplace
August 10, 2016
Intellectual Business Community
Global Mind Leaders Program: Branding in Social Media Age
September 7, 2016
Intellectual Business Community
Capital Market Workshop
Building an Insight Engine
September 7-8, 2016
Granada Law Firm
October 12, 2016
Intellectual Business Community
A Big Leap to Efficiency in Financial Consolidation,
Regulatory Reporting & Forecasting Processes
October 27, 2016
Associaton of Indonesian Listed
Companies (Asosiasi Emiten Indonesia)
Location
Jakarta
Jakarta
San Diego
San Diego
San Diego
Jepang
Jakarta
Jakarta
Jakarta
Jakarta
Jakarta
task Implementation of Corporate Secretary
Throughout the 2016 financial year, the Corporate Secretary has perfomed its tasks in accordance with the tasks and
duties of Corporate Secretary as described under the applicable laws and regulations. The activities performed relating
to the Corporate Secretary/Investor Relations task implementation are:
Date
name of activities
organize by
remarks
January 7-8, 2016
ASEAN Conference 2016
Credit Suisse
January 28-29, 2016
Mandiri Investment Forum 2016
Mandiri Sekuritas
April 25-26, 2016
Non Deal Roadshow
Morgan Stanley
Singapore
Jakarta
Singapore
Indonesia Investor Conference 2016
Citigroup Securitites Indonesia
Jakarta
May 11, 2016
May 16-17, 2016
May 23-24, 2016
BNP Paribas 7th Asia Pasific TMT
Conference
BNP Paribas
7th Annual dbAccess Asia
Conference
Deutsche Bank
May 26-27, 2016
Non Deal Roadshow
Nomura
July 14-15, 2016
August 4, 2016
Non Deal Roadshow
Investor Day 2016
Macquire Securities Group
Bursa Efek Indonesia (IDX)
August 11-12, 2016
10th Annual Indonesia Conference
2016 (Site Tour)
CIMB
Hong Kong
Singapore
Tokyo
Sydney
Jakarta
Bali
August 15-16, 2016
2016 Indonesia Conference
Credit Suisse
Singapore
August 31 – September
2 2016
Non Deal Roadshow
September 6-9, 2016
Non Deal Roadshow
September 15, 2016
Indonesia Focus Day
Deutsche Bank
Credit Suisse
Morgan Stanley
September 22-23, 2016 23rd CLSA Investor Forum
CLSA
2 November 2016
9th dbAccess Indonesia Conference
2016
Deutsche Bank
November 7-11, 2016
Non Deal Roadshow
BNY Mellon
United Kingdom
Swiss, Paris, Amsterdam
Jakarta
Hong Kong
Jakarta
New York, Boston, Chicago,
San Fransisco
November 10-11, 2016
The 11th Annual Daiwa Investment
Conference Hong Kong (DIC HK)
Daiwa Capital Market
November 16, 2016
Non Deal Roadshow
Bahana Securities
November 28-29, 2016 Non Deal Roadshow
Macquire Securities Group
November 30 –
December 1, 2016
Nomura Investment Forum 2016
Nomura
Hong Kong
Jakarta
Singapore
Tokyo
213
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS InternaL aUDIt UnIt
Internal Audit (“IA”) is an organ of the company which
function is to provide an independent views (catalyst)
on the condition of internal control, risk management,
and corporate governance process implemented by
so as to create a culture of discipline in implementing
all provisions of the applicable legislations/policies/
regulations/procedures/business process.
Mission
1. Provide services and internal audit consulting in a
Telkom and its business units in performing their business
professional, objective and independent manner for
activities.
the Management, Business Units/Work Units, and
subsidiaries.
vision and Mission of Internal audit Unit
Internal Audit Unit has vision and mission which organized
2. Provide assurance on the feasibility of financial reports.
3. Actively monitor the implementation of internal control,
in a systematic and measured manner, and also in line
provide support in improving the implementation
with the applicable standards, ranging from preparation,
of GCG, and evaluate the implementation of risk
implementation to monitoring of the follow-up results.
managament.
The vision and mission of Internal Audit Unit are as follows:
vision
As a “Smart Partner” for the 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,
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. Below, is a
chart of the organizational structure of Telkom’s IA.
president Director
Board of
Commissoner
Svp Internal audit
Harry Suseno
Hadisoebaroto
vp Infrastructure &
operations audit
Dani Ramdani
vp Integrated &
Financial audit
Heru Muara Sidik
vp planning &
Development audit
Yanti Iswari
vp It audit
Setia Dwi
Kusumawardani
Duties and responsibilities of Internal audit
Based on Internal Audit Charter, duties and responsibilities
4. To examine and assess the efficiency and effectivity
of the Internal Audit are:
in the field of finance, accounting, operational,
1. Composing Annual Internal Audit plan;
human capital, marketing, IT, and other activity;
2. To execute the Annual Internal Audit Plan that has
5. To review and/or audit the Company’s financial
been consulted by the Audit Committee or has been
statement periodically;
reviewed by Audit Committee;
6. To inspect the compliance to the related regulation ;
3. To examine and evaluate the adequacy of internal
7. To
identify
the alternative
improvement and
control and risk management system based on the
efficiency and to increase efficiency and effectivity
Company’s Policy;
of the utility of sources and fund;
214
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 8. To create audit report and to deliver that report to the
President Director and the Board of Commissioner
c.q. Head of Audit Committee;
Internal audit Unit Composition
Telkom’s Internal Audit is chaired by a Senior Vice President
of Internal Audit (“SVP of Internal Audit”), who is appointed
9. To monitor, analize and report the implementation
and dismissed by the President Director with the approval
of the improvement that has been recommended.
of the Board of Commissioners. As of the end of 2016, the
Give objective
improvement
recommendation
SVP of Internal Audit is assisted by 63 members.
and information about the activity that has been
inspected to all management level of the Company
profile of Svp of Internal audit
and the afiliation of the Company;
11. Providing consultation needed by the Company’s
management and its affilation company which the
coverage of the assignment has been agreed before.
12. Do the activity from number 2 until 10 to the
Company’s afiliation upon request by the President
Director of the Company (management instruction);
13. Collaborating with the Audit Committee, including
monitoring the follow up of the recommendation by
the result of the inspection that have a significant
impact and deliver the report to the Audit
Committee;
14. Composing the evaluation methodology and progam
Harry Suseno Hadisoebroto
Born
: Bandung, June 24, 1966
Age
: 50
nationality and Domicile
Indonesian, domiciled in Indonesia.
position and appointment Basis
Senior Vice President of Internal Audit based on the
Board of Directors Resolution No. 1905/PS720/HCC-
10/2015 dated June 9, 2015 which effectively prevail from
July 1, 2015.
term of office
July 1, 2015 – present
to increase the quality of internal audit activity
cooperating/coordinating with Audit Committee;
education
1. Graduate Study: Civil Engineering (Ir.), 1990, Bandung
15. To
review and/or depth
inspection of
the
Institute of Technology, Indonesia
audit committee request in order to follow up
2. Postgraduate
Study:
Engineering
–
Project
whistleblower and or allegations of fraud (fraud) on
the Company or its affiliated company, and deliver
Management (MSc.), 1999, University of Manchester,
Institute of Science and Technology, Manchester,
the results of the investigation to the Director and
United Kingdom
the Audit Committee;
16. Do thepreliminary
inspection with a particular
purposes.
Carreer History
1. SVP Internal Audit, Telkomsel (Mei 1, 2014 – Juni 30, 2015)
2. VP Infrastructure & Supply Management Audit, Telkom
(April 1, 2011 - April 30, 2014)
3. AVP Infrastructure Audit, Telkom (Januari 1, 2010 -
Maret 31, 2011)
4. Deputy General Manager
Kandatel Malang,
Telkom(November 1, 2007 - Desember 31, 2009)
Qualification and professional Certification of Internal audit
In order to improve the competence and education of the internal auditors, the Company is continously strive to
engage them on professional certification programs in the area of Internal Audit, both local and international. dimiliki
oleh anggota Internal Audit.
type of Certification
Qualified Internal Auditor (QIA)
Certified Fraud Examiner (CFE)
Certified Information System Audit (CISA)
Certified Management Accountant (CMA)
Certified Behavior Consultant (CBC)
ISO 27001:2013
BCMS (ISO 22301)
ITSMS (ISO 20000-1)
QMS (ISO 9000)
Certified Accountant (CA)
Jumlah
5
1
2
2
1
3
1
2
1
3
215
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Internal audit Charter
Telkom’s Internal Audit Unit is equipped with an Internal
InternaL ControL SYSteM
Audit Charter as a company’s formal document, comprising
of description of vision, mission, structure, status, duties
and responsibilities of IA, including requirements for IA’s
review of the effectiveness of the Internal
Control System
The management of the Company is responsible for
personnel as an auditor. The drafting of Internal Audit
implementing internal control over financial reporting
Charter guided by the international standards for IA
sufficiently.
Internal control over financial reporting
profession practices, issued by the Institute of Internal
is a process designed by, or under the supervision of
Auditor (“IIA”), and has been approved by the President
the President Director and the Finance Director, and
Director as well as the Audit Committee based on the
conducted by the Board of Directors, management,
Board of Directors’ Resolution No.Tel.09/PW000/UTA/
and other personnel to provide reasonable assurance
COP-C0000000/2015 regarding Internal Audit Charter.
training and education of Internal audit
During 2016, the Company has involved its auditors in
various trainings. The list of trainings which attended by
the Internal Audit in 2016 are as follows:
programs
Certification Training
Operational Training
Competency Enhancement
Training
number of
participants
number of
Days
12
30
73
48
43
183
regarding the reliability of financial reporting and the
preparation of consolidated financial statements for
external purposes in accordance with the Financial
Accounting Standards issued by the Indonesian Institute
of Accountants.
With the existing limitations, internal control over financial
reporting may not prevent or detect misstatements.
Therefore, independent audits are conducted regularly
to ensure that financial reporting can provide reasonable
information. In addition, projections of any evaluation of
the effectiveness in the future have a risk that control may
not suffice due to changes in conditions, or because the
level of compliance with the policies or procedures may
deteriorate.
Task Implementation of Internal Audit Unit
In accordance with the Annual Internal Audit Work Plan,
The management has assessed the effectiveness of
internal control over the Company’s financial reporting
in 2016, IA Unit has implemented 63 consultations and
on December 31, 2016. In conducting the assessment, the
audit objects.
activity
tW-I
tW-II
tW-III tW-Iv
Audit
Consulting
Evaluating
Review
Total IA
6
5
1
2
14
8
3
2
4
17
9
2
1
3
15
8
4
2
3
17
tahun
2016
31
14
6
12
63
management used the criteria established by the Internal
Control – Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission
(“COSO”). Based on the assessment, the management
has concluded that as of December 31, 2016, the internal
control over financial reporting was effective.
The effectiveness of
internal control over financial
reporting on December 31, 2016, has been audited by KAP
Purwantono, Sungkoro & Surja, an independent registered
public accounting firm, as stated in their report included
As per December 31, 2016, the Internal Audit has
in the Consolidated Financial Statements. In 2016, there
completed 21 Audit/consultations and delivered 269
were also no significant changes in internal control over
recommendations, with the details as follows:
the company’s financial reporting throughout the fiscal
year just ended that would affect or reasonably likely to
materially affect the internal control over the company’s
activity
total
recommendations
Follow-up Status
Closed
open
financial reporting.
Audit
Consulting
Total IA
210
59
269
123
52
175
87
7
94
216
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Telkom and its Subsidiary are committed to continuously improving the internal control process and internal control
over financial reporting as well as monitoring of the financial reporting control and its procedures to ensure compliance
with the requirements of the Sarbanes-Oxley Act and the relevant rules set out by COSO.
2016 evaluation
results
As of December
31, 2016, control
and procedures
for disclosure were
effective
Supervisor &
participant
1.
The Company’s
President Director
or, equivalent to
Chief Executive
Officer (“CEO”) and
2. Finance Director,
equivalent to Chief
Financial Officer
(“CFO”)
objective
executor
Financial and
operational Control
Compliance with
other Laws and
regulations
1. To ensure that the
information required to be
disclosed in the report has
been recorded, processed,
summarized and reported
within the specified period
in accordance with the
specified terms and form and
in accordance with the terms
applicable to the Company.
2. To ensure that the decision
making is timely in
accordance with the required
disclosure
To ensure that the Company’s
policies, decisions and all
business activities are in
accordance with the prevailing
laws and regulations, whether
internal or external, such as
legal advisory, legal opinions,
legal reviews, and litigations.
rISK ManaGeMent SYSteM
Legal &
Compliance
Unit under
the Corporate
Secretary
Department
Telkom implements the risk management to protect its assets and business activities as well as to create value for its
stakeholders. The risk management also constitutes a form of compli-ance towards the prevailing regulations. The role
and function of risk management are very important in supporting the telecommunication business that has a wide
scope of business ar-ea, requires a big investment, has a high competition level, rapid development of technology,
regulated business as well as change in the ways of communication.
General Illustration regarding the risk Management System of the Issuer
The implementation of risk management system in Telkom shall be based on the Regulation of Minister of SOE No.1
Of 2011 which obliges SOE to implement risk management. Further, the implementation of risk management also
constitutes the obligation of Telkom as a company listed in the New York Stock Exchange (NYSE) to fulfill the Sarbanes-
Oxley Act, especially arti-cle 302 and 404.
The implementation of risk management of Telkom in 2006 was begun with the formation of Risk Management & Legal
Compliance (RMLC) Unit under the coordination of Executive Vice President (EVP). Further, in 2007 the Directorate of
Compliance & Risk Management (CRM) was formed under the control of Director of CRM. With an improving level of
awareness on risk management and the existence of bigger business challenge, in 2013 the function of the Direc-torate
of CRM was changed into the Directorate of Wholesale & International, meanwhile, to implement the management of
Governance, Risk & Compliance the Department of Compli-ance, Risk Management & General Affair (“CRMGA”) was
formed under the supervision of Head of CRMGA. In line with the business dynamic and organization that is keep
growing, in 2016 the function of Risk Management was conducted by Sub-Directorate of Risk & Process Management
which constitutes a part of the Directorate of Finance. The journey in managing Telkom’s Risk Management from 2006
to 2016 has led the company to the level whereby the risk has been considered in the decision making of strategy,
operation, compliance supervision or in the internal control over financial reporting (ICOFR).
217
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Below is the diagram showing the development of risk management function in Telkom
2006
Unit risk Management
& Legal Complience
(rmlc)
2013
Departemen
Complience,
risk Management &
General affair
(“CrMGa”)
2007
2016
Direktorat Complience
& risk Management
(Crm)
SubDit risk &
process Management,
Dit KeU
Diagram of the Development of risk Management Function in telkom of 2006-2016
In 2016, Telkom kept trying to improve the implementation of risk management by emphasiz-ing the Revenue Assurance
& Fraud Management System. Further, in the next year of 2017, Telkom will strengthen the Enterprise Risk Profile Group
& Advisory through BCM, Revenue As-surance & Fraud, Insurance Management and ERM of Telkom Group.
Risk Management Policies of Telkom refers to the Regulation of Board of Directors No.PD.614.00/r.00/HK.200/
COP-D0030000/2015 dated September 30, 2015 regarding Telkom Enterprise Risk Management and Regulation of
Finance Director No.PR.614.01/r.00/HK200/COP-D0030000/2016 regarding the implementing guideline for Telkom
Enterprise Risk Management.
The objectives of the implementation of risk managements are to:
1. Ensure that all risks that may disturb the action to achieve company’s objectives can be anticipated in advance and
responded properly as well as to get new opportunities that support the action to achieve Company’s objective.
2. Prepare the Framework Standard to implement the Company’s Risk Management so that the risk management can
be more coordinated and integrated.
The main framework of Telkom’s Risk Management shall refer to the framework from COSO (COSO ERM Framework),
which shall cover three main components namely:
1. The implementation of company’s risk management must be able to support the compa-ny’s objective from the
aspects of strategic, operational, reporting and compliance.
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objetive Setting
event Indentification
risk assessment
risk response
Control activities
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Information & Communication
Monitoring
Diagram CoSo erM Framework
218
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
Strategic Aspect:
The management and implementation of risk management
shall be made in order to give added values through the
process of company’s planning such as on the preparation of
Company’s Long Term Plan (Corporate Strategic Scenario),
Annual Budgeting (RKAP) or the process of strategic
decision making.
Operational Aspect:
The implementation of risk management to protect company’s asset are
conducted through among others:
1. Physical security management for infrastructure security
2.
IT Security Management System which shall cover confidentiality, integrity and
availability
3. Management of Occupational Health and Safety (OHS) System
4. The Development of Business Continuity Management, Disaster Recovery Plan
and Crisis Management Team
5. The Management of Revenue Assurance and Anti Fraud Program
Compliance Aspect :
Risk management shall be made in order to give added
values through:
• compliance management upon the External or Internal
Reporting Aspect :
The risk management shall be made in order to give added value through the
stipulation of the disclosure controlling process of financial reporting through the
Disclosure Control Procedure (“DCP”).
Regulation
• compliance management upon the provisions of SOX
through the design and implementation of adequate
internal control
2. Company’s risk management shall be implemented in all organization levels within the company which shall cover
the Enterprise level, Division, Business Unit and Subsidiary. In line with such matter, good governance of Telkom’s risk
management shall be adjusted with the structure and hierarchy of organization policies namely:
Board of Directors
Risk Committee
To determine the policies in relation to the risk management and to ensure that company’s risk
management has been implemented in all company’s manage-ment processes effectively.
To determine certain policies, review and recommendation upon the company’s risk and to give the
feedback or guideline to the responsible person of company’s risk.
Company’s Risk Management Unit
To coordinate the implementation of company’s risk management policies.
Internal Audit Unit
Unit Manager
All Employees
Subsidiary
To give an independent opinion to the Board of Directors, Risk Committee, and Company’s Risk
Management unit.
To implement and supervise all company’s risk management processes in the unit that he/she
manages.
To conduct company’s risk management policies based on their role and position effectively and
efficiently.
To implement the risk management in the subsidiary in the framework of imple-mentation pursuant
to the risk management framework of Telkom.
3. The implementation of company’s risk management shall consist of 8 components of process namely:
a. Internal development.
b. Objective setting.
c. Event identification.
d. Risk assessment.
e. Risk response.
f. Control activities.
g. Information and communication.
h. Monitoring.
To be able to conduct 8 components of process in the framework of COSO well, Telkom develops and maintain
company’s risk management through the structural and operational aspects.
a)
Structural aspect; to develop the supportive internal
environment, namely:
• To build the commitment and Tone at the Top.
• To put the foundation of risk management in framework of
b)
Operational Aspect; to focus on:
• The implementation of risk assessment in the level of
corporate, business unit and subsidiary as well as the
preparation of adequate mitigation plan.
GCG.
• To form a Risk Management Organization Unit.
• The development of Policy, Guideline for Risk Acceptance
Criteria (RAC), Guideline for Risk Assessment (Risk & Control
Self Assessment/RCSA) and Good Governance.
• The development of competence in the field of risk
management.
• The provision of adequate tools and system.
• The development of risk assessment methodology for specific
function that combines the implementation of COSO ERM
Framework with standard reference or other guideline.
• The maintenance aspect that is focused on the process
of information, communication, review and continuous
improvement.
219
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS In the implementation of risk management system, Telkom also pays attention and combines the said COSO framework
with other relevant reference and guideline among others:
1
2
3
4
5
ISO 31000
ISO 27001
ISO 22301
ISO 20000
ISO 18001
Enterprise Risk Management as the implementation comparison and complementary
Information Security Management System (ISMS) as a reference in the development of risk management to ensure
Information Security in terms of Confidentiality, Integrity and Availability.
Business Continuity Management System (BCMS) as a reference in the effort to ensure business continuity
Information Technology Service Management (ITSM) as a reference to ensure IT ser-vice
Occupational Health and Safety Assessment System (OHSAS) as a reference to support the implementation of
SMK3 based on Government Regulation No.50 of 2012 regarding the implementation of SMK3
organization of risk Management in the Corporate Level
Telkom implements risk management system in all organization levels, namely:
1. Corporate Level.
2 Business Unit in the Company’s Office.
3. Business Unit (Division/Center).
4. Subsidiary.
In reference to the Regulation of Board of Directors and the Regulation of the Director of Hu-man Capital Management
in 2016, Telkom’s risk management function is implemented by Sub-Directorate of Risk & Process Management in the
Directorate of Finance under the following structure:
vp rISK & proCCeSS
ManaGeMent
avp Governance and
Quality Management
process Management
project Leader 1
process Management
project Leader 2
risk Managament
project Leader 1
risk Managament
project Leader 2
types of risk and Management Method
Risk management system helps Telkom to identify significant risks for the business sustainabil-ity. Telkom has identified
the risks in Indonesia specifically, namely the risk of social and poli-tic, macro economy, disaster and other risks. Further
for the business risks, Telkom has identi-fied the risk of operational, finance, law and compliance, regulation, inherent
risk to the fixed and mobile telecommunication business. In addition to such risks, Telkom also conducts the quantitative
and qualitative disclosure upon the market risk.
220
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS type of risk
risk that is faced
the Impact to telkom
Mitigation/risk Management
a. risks related to Indonesia
Politic and Social
The disruption of politic stability and social
Have negative impact to the business, operation,
1. Monitoring of the influence of social
instability to specific issues
financial condition, business proceeds and
political instability to the disruption
prospect as well as market price for securities
of operational/service
2. The maintenance of awareness
through the improvement of safety &
Security functions
Macro Economy
The change of global, regional, or
1. Have the impact on the business, financial
1. Monitoring of the influence of
Indonesian economic activities
condition, business proceeds or business
macro economy to the change to
The fluctuation of Rupiah Exchange rate
prospect.
increase the expense through Cost
2. Have a material adverse effect to the business,
Leadership program.
The increase of loan interest rate
financial condition, business proceeds or
2. To look for the opportunity to
The decrease of government or company’s
credit rating
business prospect
increase the spending of APBN
pursuant to the government
focus (Maritime, Tourism, Energy,
Transportation, etc)
Risk of Disaster
Flood, thunder, storm, earthquake, tsunami,
Disrupting its business operations and give
1. Transfer of risk by using the
volcano eruption, epidemic, fire, drought,
negative impact to the financial performance and
insurance of assets to anticipate the
power shut down and other event beyond
profit, business prospect as well as market price
natural disaster and fire.
our control
of securities
2. Coordination with ASKALSI
(Indonesian Sea Cable Association)
to secure SKKL.
3. Preventive & Corrective Action by
preparing the Disaster Recovery Plan
and Crisis Management Team.
Other Risks
Indonesian corporate information
Disrupting its business operation and giving the
The use of a competent legal consultant
disclosure standard is significantly different
negative impact to the financial performance and
that has experience with the issues
than what is implemented in other
profit, business prospect as well as market price
on corporate law in other countries
countries including the United States of
of securities
particularly the United States of
America
The difference in the regulation of dividend
determination
The issue on the legal certainty in Indonesia
and United States of America including the
implementation of law
The possibility on the difference in the
interest of controlling shareholders with the
interest from other shareholders
America
221
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS type of risk
risk that is faced
the Impact to telkom
Mitigation/risk Management
B. Business related risks
Operational Risk
The failure in the sustainability of network
Has the negative impact to the business, financial
1.
Implementation of BCM, BCP, and
operation, main system, gateway on our
condition, proceeds from the operation and
DRP
network or other operator’s network
business prospect
2. Certification of Integrated
Management System (IMS) for
infrastructure management
Threat of physical and cyber security, such
Has the negative impact to the business, financial
1. The upgrade of Preventive Action in
as theft, destruction, or other action
condition, proceeds from the operation materially
the form of Vulnerability Assessment
and Penetration Test periodically
2. Monitor and Identification all of
types of attack in the real time as
well as to choose and conduct a
necessary action immediately
3. Preparing the recommendation to
handle Cyber Attack based on the
historical incident analysis
4.
Intensive coordination with relevant
parties to handle the Cyber Attack
Risk in relation to internet service
May face a lawsuit and damage the reputation
To be more prudent in the preparation
of contract with content provider
partner
Leak of revenue due to the internal
Has a negative impact to our business proceeds
1. Acceleration of leak detection time
capability weakness or external factor
and revenue indicated as an external
fraud in real time
2. Monitoring the critical point of the
leak of revenue especially on the
rejected billing call
New technology
Has an impact on the competitive power
1. The preparation of Technology
Roadmap by taking into account
future technologies and the possible
implementation of competitor’s
technologies
2. Acceleration of IDN (Indonesia
Digital Network) program to support
future services
The limit of operation period, damage
Can create loss to financial condition, proceeds
1. The planning to change the Satellite
or ruin, delay or failure to launch, or the
from operation and capability to give services
of which operation period will be
revocation of Satellite license
immediately expired
2. The insurance of Satellite operation
during the active period
3.
Insurance for Manufacturing and
Launching of new Satellite.
4. Developing the understanding with
Regulator in relation to the Satellite
operation by Telkom
Financial Risk
Interest Rate Risk
Has an adverse effect to the business, financial
Interest rate swap contract from the
con-dition and proceeds from the operation
float interest rate to become the fix
interest rate upon certain loan term
Foreign exchange rate risk
Has negative impact on the financial condition or
Placement of time deposit and hedging
proceeds from the operation
to cover the fluctuation risk of foreign
exchange
The limit to fund cap-ital expenditure
Has a material adverse effect to the business,
Maintaining and improving the
financial condition, opera-tional performance and
Company’s performance to obtain
business pro-spect
the trust from National or Global fund
institution/source
Legal and Compliance
Penalty/fine by KPPU in relation to the
reducing our revenue and has negative impact to
Strengthening Legal Review towards
Risk
price fixing and the occurrence of class
the business, reputation and profit
corporate action plan or certain
action
contract
222
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS type of risk
risk that is faced
the Impact to telkom
Mitigation/risk Management
Regulation Risk
The change of Indonesian or International
Has the impact to the business, financial condition,
1. Analysis on the impact of the
Regulation
operational performance and business prospect
regulation plan towards the industry
in general and Telkom in particular.
2. Giving inputs so that the regulation
that will be stipulated will give positive
impact to the company and industry.
Risk in relation
Losing the cable phone customers and
Has a material adverse effect on the proceeds
1.
Improving QoS – Quality of Service
to Fix and Mobile
revenue from the service of cable phone
from operation, financial condition and our
for cable phone customers.
Telecommunication
voice call
business prospect
2. Giving Value Added Service
Business
The competition on the internet service
Has a negative impact on the business, financial
1. Strengthening the perception and
(fixed Broadband)
condition operational performance and business
quality of IndiHome as New Digital
prospect
Life Style
The competition on mobile service
has a negative impact on the business, financial
1. Acceleration of the launch of the
condition operational performance and business
infrastructure for 4G service
prospect
2.
Improving QoS – Quality of Service
2. Acceleration on the launching of the
infrastructure for fixed broadband
service
review on
management system
During 2016 Telkom’s risk management system has been
the effectiveness of risk
Integrated Management System
• The application of SMK 3 Online managed by
Security & Safety Unit for Health and Safety
documentation management
implemented effectively in support-ing every policy and
• The application of Security & Safety managed
business process of Telkom and its subsidiaries. The
by Security & Safety Unit for the moni-toring of
assessment on the effectiveness of Risk management
Physical Security management
implementation was conducted through the evaluation
• The application of Telkomcare for the coordination
pro-cess, namely:
with Crisis Management Team
1. One-on-one Evaluation/discussion with business unit
as necessary.
To maintain the quality of risk management, Telkom has
2. Workshop for the sharing in the implementation
also implemented the risk manage-ment competence
and development of ERM with the sub-sidiaries as
development through trainings. Moreover, Telkom has also
necessary.
conducted so-cializations as well as workshop in relation
3. Audit Program on Risk Management Implementation
to the risk management in the office of the division and
as necessary.
subsidiaries so that every person in Telkom is able to
4. Evaluation with the Committee for Risk, Compliance
understand risks with the same point of view.
and Revenue Assurance in BoD level as necessary.
5. Evaluation with Planning and Risk Monitoring
Evaluation Committee (KEMPR) as neces-sary.
table of training of telkom’s risk
Management in 2016
The effectiveness of Telkom’s risk management system is
integrated with the use of support-ing infrastructure by
using a risk management information application (tools)/
system, among others:
1. Generic Tools Enterprise Risk Management Online
(ERM Online) which is used by all units for the
management of Risk Assessment
2. Specific Tools for the purpose of certain risk
management such as:
1
2
3
4
5
no.
type of training
Risk based Audit
Risk Assessment ICOFR
Internal Auditor BCMS
time
January 2016
August 2016
October 2016
ISMS & Internal Auditor ISMS
November 2016
Transaction and Accounting for
Hedging
November 2016
• The application of Fraud Management System
(FRAMES) which is used as an early detection
During 2016 Telkom received the visits or was asked by
external parties to conduct sharing ses-sions for the
system for the possibility of Customer Fraud
implementation of Risk Management, Internal Control,
• The application of i-Library managed by the
Process Management, Good Corporate Governance and
Division of Network of Broadband and to be used
Insurance Management among others from:
for the management of documentation system of
223
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS •
PUSDIK of the Ministry of
: March 31, 2016
Email
: whistleblower@telkom.co.id or:
Finance
ka301@telkom.co.id
• Directorate of Risk
: April 4, 2016
Fax
: +62-021 5271800
Management for State
Finance
The Ministry of Finance
•
•
Pelindo II Medan
: May 13, 2016
Internal Auditor of the
: May 25 – 27, 2016
Ministry of Finance
• Ministry of KOMINFO
: November 3, 2016
Website
: www.telkom.co.id
Surat
Audit Committee
PT Telkom Indonesia (Persero) Tbk
Graha merah Putih Lt. 5
Jl. Jend. Gatot Subroto Kav 52,
Jakarta
12710
In 2016, Telkom received awards or certifications for its
implementation of Telkom’s risk man-agement system
The Complaint must fulfil the following requirements:
from external parties namely:
external Institution
type of award
1. It is submitted through the website, email, fax or letter.
2. It gives the information regarding the issue on internal
control, accounting, auditing, breach of regulation,
allegation on the fraud and/or allegation of corruption,
PT. SGS Indonesia
Integrated Management System for the
and the breach of code of ethics.
Infrastructure Management which covers :
3. The information that is reported must be supported
• The Certificate of ISO 9001:2008 -
with sufficient evidence and those are reliable to be
Quality Management System
• The Certificate of ISO 27001:2013 -
Information Security Management System
• The Certificate of ISO 22301:2012 -
Business Continuity Management System
• The Certificate of IS0 20000:2011 – IT
Service Management System
WHIStLeBLoWInG SYSteM
Whistleblowing System (WBS) constitutes the system that
collect complaints regarding any violation in the Company.
Since 2006, Telkom has implemented a whistleblower
program which was designed to receive, review, and
follow up the complaints from the employees of Telkom
Group and from the third party by keep maintaining the
reporter’s confidentiality. The implementation of the
whistleblower program managed by the Audit Committee
was stipulat-ed under the Decision of the Board of
Commissioner and ratified with the Decision of the Board
of Directors.
Mechanism for the violation report
Employees of Telkom Group or any third party may
used as the initial data to conduct further investigation.
protection to the reporter
Through the Decision of the Board of Commissioner
No.08/KEP/DK/2016 dated June 8, 2016 regarding the
Procedure for the Handling of Complaint (Whistleblower)
PT Telkom
Indonesia, Tbk and
the consolidated
Subsidiaries which was then ratified with the Regulation
of the Board of Directors No.PD.618.00/r.00/HK200/
COP-C0000000/2016 dated December 21, 2016, Telkom
warrants and ensures the protection of reporter’s
confidentiality, both the employee or any third party
who submit the complaint or report on the allegation of
violation. Telkom always prioritizes the confidentiality and
presumption of innocent and the principles of Telkom’s
Whis-tleblower in following up any complaint or report as
submitted in accordance with the proce-dure of handling
Telkom’s Whistleblower.
the Complaint Handling
The complaint handling to fulfil the Regulation of OJK
No.IX.1.5 and Sarbanes-Oxley Act 2002 Section 301
regarding Public Company Audit Committee must be
placed in order to improve Good Corporate Governance
(GCG). Therefore, complaint requirements are necessary
in order to keep that the reporter conveys the complaint
in a full responsibility and not to conduct a defamation
submit any complaint regarding any issues on accounting
that may destroy the good reputation of a person.
and auditing, breach of regulation, allegation on the fraud
and/or allegation of corruption, and the breach of code
The Audit Committee will follow up the complaint from
of ethics directly to the President Commissioner or to the
the third party or the employees of Telkom Group in
Chairman of Audit Committee through email, fax or letter
relation to:
to the following address:
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
1. Accounting and Auditing
The issues on the accounting and internal control upon
the financial reporting which has the possibility to
cause the material misrepresentation in the financial
report as well as the issues on the audit especially the
implementation of accounting standard including those
related to the independence of Public Accountant
Office.
2. Violation of Regulation
Violations against the capital market regulation and
laws and regulations in relation to the operation of the
Company as well as the violation against company’s
internal regula-tion which has the possibility to cause
any loss.
3. Fraud and/or the allegation of corruption
Fraud and/or the allegation of corruption which is
conducted by the official and/or the employee of the
company.
4. Code of Ethics
The behavior of Management and employees of the
company that is disgraceful with the potential of
causing damages on Telkom’s reputation or causing
losses to the company. The behavior of management
and employee that is disgraceful are among others
dishonesty, conflict of
interest with Telkom, or
providing any misleading information to public.
Telkom has also developed a work mechanism between
Audit Committee and Internal Audit including the protocol
with Telkomsel to follow up the complaints that are being
received. In addition to it, the whistleblower program has
also been socialized and understood by the employees.
the Complaint Handling Mechanism of telkom and Subsidiaries
Investigation process column
Whistleblowing and Follow-ups
Bahan
evaluasi
archives
expert
Cc
Follow-
upt
Follow-up
report
approval to
Follow-up
appointment
of expert
Yes
Case review
Subsidiaries?
need
experts?
the
Investigation
report on
the result of
Investigation
Yes
No
tpta?
No
Yes
No
Letter of the president
Director to Subsidiary
Copied (CC) to (1) president
Director of telkom, (2) audit
Committee and (3) Internal
audit of the Subsidiary
Subsidiary Discussion
Follow-
up?
Yes
No
Forming an
Investigation
team
Yes
tL
combined?
response
Letter
note of
tL
note of
tL
Documentation
end
No
Investigation by
subsidiary
the audit
report
tpta
Subsidiary
tpta
report
No
Joint
team?
tpta - Joint
tpta report
Follow-up
Follow-up
report
225
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
the party that Manages the Complaint
Whistleblower Protection Officer (“WPO”) constitutes the
member of Audit Committee that is assigned to handle
the complaint by:
1. Receiving the complaint.
2. Administering the complaint.
The Investigation Committee has its role in:
1. Conducting further investigation upon the complaint
that has been initially assessed by the Internal Auditor.
2. Preparing reports on the result of further investigation
and submitting the reports to the President Director to
be copied to the Audit Committee.
3. Conducting
the
initial verification whether
the
complaint is in line with the criteria.
4. Monitoring the follow up of the complaint.
the result of Complaint Handling
The Audit Committee through the meeting shall
whistleblower application but after those were reviewed
determine:
by the Audit Committee there was only 1 (one) complaint
a. To give approvals to follow up of complaints received.
that fell in the cate-gory of whistleblower, The balance did
b. To give approvals on whether a complaint is to be
not fall in the category of whistleblower (complaint on the
followed up by an internal or external party.
service/product).
In 2016, there are 40 incoming complaints in the
c. To give an assessment on whether the follow up of a
complaint is already sufficient or not.
The Internal Auditor has the role in:
1. Conducting the initial assessment on the complaint
received by the Audit Committee.
2. Preparing initial assessment reports and submitting
the reports to the President Director to be copied to
the Audit Committee.
SIGnIFICant LeGaL DISpUteS
Description
Total Complaint
Fulfil the
requirements
total
40
1
remarks
Received complaints
Complaint that is proper to
be followed up
During 2016, there were 69 legal disputes encountered by Telkom which consist of 9 Criminal Litigation and 60 Private
lawsuit.. In addition, there was also 1 (one) significant dispute encountered by Telkom’s Subsidiaries. Until the end of
2016 there is no legal issue faced by Board of Commissioners and Board of Directors.
table of recapitulation of 2014-2016 Lawsuits against telkom
Status
In process
Final and binding (inkracht)
Sub Total
Total
telkom’s Legal Issues
2014
2015
2016
Criminal
Civil
Criminal
Civil
Criminal
Civil
-
1
1
2
-
2
3
2
1
3
6
4
10
13
9
-
9
36
24
60
69
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS For Telkom’s information diclosure purposes, the following is detail information relating to significant lawsuits
encountered by the Company in 2016.
table of 2016 Lawsuit against telkom
object of Dispute
type of Court
Status of Dispute
Financial Impli-cations
Supreme Court
Telkom became a defendant in
Suoreme Court about legal dispute
regarding supposition violation
on Article 5, Law No. 5 Year 1998
about Monopoly and Prohibition of
Unfair Business Competition which
has been submitted by the KPPU.
18
The Supreme Court has been
decided on February 26, 2016
which basically they grant the
application from the KPPU and
punish Telkom to pay fina in the
amount of Rp18 billion. That
particular decision received by
Telkom on December 14, 2016 and
Telkom has been paid that fine on
January 5, 2017
for
Comission
the
Supervision of Business
Competition (KPPU)
The Supreme Court already made
a decision about this case
25
Subssidiaries
Telkomsel
along with other
Operators were under investigation
by KPPU relating to the allegation
of SMS cartel practices committed
by the Operators. KPPU has issued
a Decision, punishing Telkomsel
to pay a fine in the amount of
25 billion Rupiahs. Based on the
official announcement of Supreme
Court, tha case has been decided
that the KPPU Decision still prevail
and the district court decision
that negate the KPPU’s Decision is
canceled
InForMatIonS reGarDInG aDMInIStratIve SanCtIonS
In 2016 Financial Year, there is no Administrative Sanctions by the Capital Market Authority and other Authority
sentenced to The Company, Board of Directors of The Company and Board of Commissioners of The Company.
Therefore there is no information about Administrative Sanctions in this sections.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Corporate CULtUre
“The Telkom Way” has become Telkom’s corporate culture or corporate values since 10 June 2013 as stipulated by the
Board of Directors under Decree of the Board of Directors of Limited Liability Company (Persero) PT Telekomunikasi
Indonesia Tbk, No.PD.201.00/r.00/HK250/COP-B0020000/2013 on Leadership Architecture and Corporate Culture.
Furthermore, guidelines for the implementation of the Corporate Culture within the Telkom Group environment
are set out in Regulation of the Director of Human Capital & General Affairs of Telkom No.PR.201.01/r.00/HK250/
COP-B0400000/2013 on the Corporate Culture of Telkom Group.
The stipulation of the corporate culture above refers to the concept of the management of Telkom Group, which is
based on the 8S elements, namely Spirituality, Style, Shared Values, Strategy, Staff, Skill, System, and Structure. The
Corporate Culture is formulated in detail as follows:
tHe teLKoM WaY
KeY BeHavIor
(IMAGINE, FOCUS, ACTION)
PRACTICES TO BE WINNER
Core vaLUeS
(SOLID, SPEED, SMART)
POWER PLAY TO BE THE STAR
BaSIC reLIeF : aLWaYS tHe BeSt
(INTEGRITY, ENTHUSIASM, TOTALY)
POWER PLAY TO BE THE STAR
IFa
Imagine
Focus
action
Solid
Speed
Smart
• Planning Victory
• Set The Target
• Risk Anticipation
• Focus
• Set Quick win
• Source Optimization
• Real Action
• Evaluation
• Continous improvement
• Sinergy
• Common Vision
• Trust
•
Iniciative
• Fast Service
• Decision Speed
• Target Understanding
• Set The Priority
•
Integrity
aLWaYS tHe BeSt
Integrity
Integrity
•
• Positive Behaviour
• Honesty
enthusiasm
totaly
• Enthusiasm
• Sincerity
• Will To be The Best
• Totality
• Self Improvement
• Commitment to Work
• Philosophy to be the Best: Always The Best
Always the Best is a basic belief to always give the best in every job. Always the Best has the essence of “Ihsan”
which in this sense is translated into “the best”. Any individual of the Telkom Group who has the spirit of Ihsan will
always give better work results than expected, that the attitude of ihsan will therefore automatically be guided by a
sincere heart when any activity undertaken is a form of worship to the God Almighty.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS • Philosophy to be the Best: Integrity, Enthusiasm,
- Smart - All individuals of the Telkom Group are
Totality
required to work smartly, that is to understand the
Always the Best urges every individual of the Telkom
goals to be achieved, to determine priorities and
Group to have integrity, enthusiasm, and totality.
to always look for new better ways to achieve the
• Principles to be the Star: Solid, Speed, Smart
goals.
Principles to be the Star of The Telkom Way means
• Practices to be the Winner : Imagine - Focus – Action
3S which stands for Solid, Speed, Smart which also
Practices to be the Winner of The Telkom Way means
becomes the core values or great spirit.
IFA which stands for Imagine, Focus, Action which is
- Solid - All individuals of the Telkom Group must
also the Key Behaviors.
provide the best (Always The Best) and increase
solidarity among all individuals of the Telkom Group
as one Great Team.
- Speed - All individuals of the Telkom Group must
work quickly at every opportunity to win the
competition because the fast ones will beat the
slow ones.
the telkom Way
#1
philosophy
to be the Best
“Insan terbaik”
principles to be the Star
“Insan Bintang” :
Solid, Speed, Smart (3s)
practice to be
the Winner
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS the 2016 Cultural activation program
process of
Culture audit
& alignment
Warrant telkom Group
role Modeling
Compelling Story
• Set Senior Leader in TELKOM Group as a Role Model
with sustain commitment (Annual Program Setting)
• Provide Improvement and series of Role Model
Coaching Session to Culture Agent
• Culture Agent Recruitment
• Promote “Leaders Talk Values Program”
• Cerpen KIPAS BUDAYA TTW Acticity : Promote Disruptive Culture
Project than specific logic “Go digital”, “Go to Customer Experience”,
“Be move Learn”
• Develop Interctive website of TTW Insight for TELKOM Group
• Continuing Innovative culture inspiring legend
• Culture Award “Finding The Culture Heroes”
• Promote the digital work environment
• Strengthen TTW than National day event
Formal System & procedure
Upgrade Skill to Change
• Translate disruptive & digital culture into The Telkom
Way behavior thru Digital Culture Appreciative Injury
• Culture Agent Recharging
• Culture Agent Onboarding
Session
• Running TTW Refreshment (Digital Culture) for all
• Design Culture Fit Test for New Hire
employee (online/offline)
• Develop Performance Indicator and Evaluation for Role
• Running TTW for Frontliner (From Culture to Customer
Model & Culture Agent
• Define Symbol and Artistic
Experience)
• Role Model Learn & Share
• Seminar Session 4 Leader : “Leader as a Coach”
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
The internalization of corporate culture was conducted
using a top-down approach. The CEO of Telkom Group
Calender of event
Calendar of Events (COE) is a medium to communicate the
is a role model for Corporate Culture and assigns all Unit
cultural activation program of each month as a reference
Head to be Role Models. Role Models also have to select
or guide for the units of Telkom Group in planning and
and assign Culture Agents whose tasks are to arrange the
implementing the cultural activation programs in order to
initiation of cultural activation activities in the relevant
instill the corporate cultural values to the employees’ daily
units and to motivate all employees to participate in it
work behaviors.
so that the process of internalization of The Telkom Way
goes well. To date, Telkom Group has 767 Culture Agents
(440 CAs from Telkom & 327 CAs from the Subsidiary)
who, before carrying out his duties as culture agents, are
Calendar of event Culture activation program
2016
provided with the Culture Agent on Boarding program to
Cultural activation was carried out with the aim to
provide skills and knowledge and common perception as
internalize the corporate cultural values in the behavior
Culture Agents.
of all employees and express it in all of the Company’s
events and business activities.
In order to accelerate the implementation of corporate
culture at the unit level, all of the Unit Heads were
In 2016, a Culture Program Calendar of Events was
instructed to establish a Cultural Activation Provocation
prepared on the basis of national public holidays approach
Community (Komunitas Provokasi Aktivasi Budaya/
KIPAS Budaya) in their respective units. As of December
2016, there were 132 groups of KIPAS Budaya. Each unit
is granted the discretion to name its KIPAS Budaya in
accordance with its respective goals and awesome. The
as a means of strengthening the implementation of the
values of The Telkom Way. The events include:
• Kartini’s Day event, held in April with the aim to give
meanings and adopt the values of Kartini’s struggle in
theme of the activities of KIPAS Budaya is adjusted to
promoting education for women.
the company’s business strategy. In 2016 the theme
was set nationally, namely, “Go Digital, Go to Customer
Experience, and Be more lean”. As a reference for the unit
cultural activation events, a Calendar of Events of Culture
Program was published on the basis of National Public
Holidays approach.
• telkomer’s Back to School,
held
in May
in
commemoration of National Education Day. In this
event, Telkomers carry out teaching and sharing
activities in a number of schools or communities as to
how to use the internet healthily, use gadgets wisely
and about the professions of the Telkomers which are
expected to inspire Indonesian students to advance
the country.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS • Kids Go to office, held in June in early holidays
between academic years of the children. In the event
The
internalization and strengthening of Corporate
Culture were also carried out in a number of innovative
which carries the theme “My Parents My Inspiration
(Ayah-Ibuku Inspirasiku)”, the employees are allowed
to invite their children to be involved directly by playing
ways, including through:
• Culture Quiz, which aims to measure the understanding
and awareness of Telkomers Group on the corporate
the roles of their parents at work. This event aims to
culture. The quiz is held periodically and online.
provide experience and inspiration of the professions
of Telkomers at work and to introduce the existing
• Culture Story, is a digital media (e-magz) containing
a collection of articles on current topics related to The
work culture at the same time.
Telkom Way corporate culture.
• Customer’s Day event held in September which carries
the theme “We Care U More”, the implementation of
• Corporate Culture e-Learning, which aims to improve
the employees’ understanding on The Telkom Way,
which refers to the theme of National Customer Day
and can be accessed through Telkom’s portal. In 2016,
“Authentic Services and Experience (Pelayanan dan
the topic of the e-Learning was “Diarium-New Digital
Pengalaman yang Otentik)”. To provide services and
Paradigm For Strengthening The Telkom Way” and
experience for customers by prioritizing corporate
was a mandatory e-Learning for all employees.
character and culture as well as the Company’s vision.
• raise Youth Spirit event, held
in October
in
• role Model Learn & Share, is a benchmarking activity
of the Role Models in the corporate cultural activation
commemoration of the Youth Pledge Day (Hari
of the Telkom Way in their respective units.
Sumpah Pemuda) by filling it with activities.
• Mother Day’s event, held in December with a number
of activities such as Parenting Seminars and visits to
Nursing Homes organized by women.
From Culture to Customer’s experience
As an effort to implement corporate culture that can be experienced directly by the customers of Telkom Group, the
first step was the implementation of the Culture to Customer Experience training for frontline supervisors joined by 100
frontline supervisors of PT Telkom Akses.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Finding the telkom Group Culture Heroes
In recognition of the units and employees that have actively activated The Telkom Way corporate culture, in 2016 the
“Finding the Telkom Group Culture Heroes” event was held. This event awarded The Most Admired Culture Activation
Unit, The Most Inspiring Role Models and The Most Inspiring Culture Agent. The Awards were handed out directly by
the CEO of Telkom Group at the 2016 Telkom Award night.
telkom Smart office
To support the creation of a digital work environment, the Company has developed a digital lifestyle based work station
(Telkom Smart Office Project) and designed the existing rooms carrying the theme “Working at Telkom Group has to
be fun”.
evaluation on the effectiveness of the implementation of corporate culture
The effectiveness of corporate culture is evaluated by measuring the Cultural Health Index using a Corporate Cultural
Entropy Survey. To date, Telkom Group has managed to maintain the Corporate Cultural Health Index at the level of
PRIME or HEALTHY.
telkom Becomes a Corporate Culture Benchmark
Telkom’s efforts in activating The Telkom Way corporate culture attract other companies to conduct benchmarking
visits, including from: BPKP, the Ministry of Public Housing, PERTAMINA, PERURI, the Ministry of Energy and Mineral
Resources, the Center for Planning and Development of the HR of the Ministry of Environment and Forestry (Pusrenbang
SDM KLHK), and PT Terminal Teluk Lamong.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS CoDe oF ConDUCt
Implementation of Code of Conduct for
Directors, Board of Commissioners, and
employees
Pursuant to the Sarbanes Oxley-Act (“SOA”) 2002
Socialization of Code of Conduct and efforts
to enforce them
Every year, Telkom posts socialization materials to
employees about understanding corporate governance,
business ethics, integrity pact, fraud, risk management,
internal control
(“SOA”), whistleblowing, banning
section 406, Telkom owns and runs the code of conduct
gratification, IT governance, ensuring information security
which applies to all levels of the organization. Telkom
and other
integrated matters related to corporate
Code of Conduct is established by the Decree of Directors
governance practices.
No.KD.201.01/2014 on Business Ethics in Telkom Group
Telkom also organizes business ethics program online
Environment. Telkom Code of Conduct is applicable
survey program to all employees through the media
to members of the Board of Directors, members of the
portal/intranet, which ended with the willingness of
Board of Commissioners and employees of Telkom family
employees to run the business ethics. Understanding and
in dealing with customers, suppliers, contractors, fellow
application of business ethics and the results of the survey
employees and other parties who have a relationship with
is annually audited internally and externally through the
the company.
principles of the Code of Conduct
Principles of Telkom’s Code of Conduct regulates the
following:
1. Employee Ethics; which is the system of values or
norms that are used by all employees and leaders in
the daily work with the following scope;
a. Main Behavior of Employees:
i. Capacity and Capability of Employees
ii. Duties and Prohibitions
iii. Confidentiality of Information
iv. Infrastructure
v. Work environment
b. Main Behavior of Leaders:
i. Behavior of Leaders
ii. Behavior of Directors
iii. Behavior of Chief Executive Officer (CEO) and
Chief Financial Officer (CFO)
2. Business Ethics, which is the system of values or norms
that is upheld by the Company as guidelines for the
Company, Management, and its Employees to interact
with its environment with the following scope:
a. Relationship with Regulator
b. Relationship with Stakeholder
c. Additional Terms
SOA 404 audit process. The audit is executed in order to
implement appropriate environment control according to
the work schemes on COSO internal control on the entity
level internal control audit.
eMpLoYee
proGraM
StoCK oWnerSHIp
The employee and/or management stock ownership
program, or Employee Stock Ownership Program
(“ESOP”), is a form of employee participation to also gain
ownership of Telkom. During the Initial Public Offering
(IPO) of 14 November 1995, as many as 116,666,475 shares
are owned by 43,218 employees.
Further, on 14 June 2013, Telkom has transferred a part
of its buy back shares in the form of employee-owned
stock as part of the annual work incentive for the 2012
financial year. As many as 59,811,400 recovered shares
(equivalent to 299,057,000 shares after stock split) were
transferred to 24,993 employees with a total fair value of
Rp 661 billion.
Telkom did not hold the ESOP program in 2016, thus, no
information is available on the number of shares and/or
options, implementation period, requirements for eligible
employees/management, and the implementation price
shown in this Report.
Until the end of 2016, there are no code of conduct
violations by Board of Commissioner, Board of
Directors, and Telkom employee.
As of 21 March 2016, as many as 14,373 employees and
retirees are listed as Telkom shareholders with a total of
110,256,210 shares.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 235
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 236
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS TELKOM’S SOCIAL
RESPONSIBILITIES
239
The Strategy For Telkom’s Social Responsibilities
239
Social Responsibilities To The Customers
240
Social Responsibilities To The Employees
243
Social Responsibilities To Society’s Social And Economy
247
Social Responsibilities To The Environment
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Theme: Telkom Indonesia for Indonesia
PLANET
PEOPLE
PROFIT
DIGITAL COMMUNITY
DIGITAL MARKETING
DIGITAL ECONOMY
Digital Park
wifi Corner
BLC
Broadband Learning
Center, Digital Book
Indonesia Digital
Learning
My Teacher
My Hero
UKM Go Digital
Online Marketing
Training
SOE Creative House
Digital village
SocioDigi Leader
Digital Lounge
Creative Camp
Disability Care
Veterans’ House Renovation
Development of public utilities
Clean Water, Electrification
1000 Mobile Phone
Free Repair
Aid to Victims of Natural
Disasters (Garut, Sumedang)
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS THE STRATEGY FOR TELKOM’S
SOCIAL RESPONSIBILITIES
The strategy for Telkom Group’s social responsibilities refers to the
concept of 3P profit-people-planet and the paradigm of “Telkom
exists for Indonesia, grows and develops together with Indonesians”.
In relation to the said matters, Telkom Group implements the social
responsibilities within 2 categories of program, namely Social
Responsibilities Program (Program Tanggung Jawab Sosial Telkom
- Telkom TJSL) implemented by Telkom Group and Partnership and
Environment Development Program (Program Kemitraan dan Bina
Lingkungan - PKBL) mandated to Telkom as an SOE.
The elaboration regarding PKBL will be presented separately
in other part of this Report. Telkom TJSL will be elaborated in
this Report based on the need of the annual reporting. A more
comprehensive information regarding Telkom TJSL will be presented
in the Sustainability Report (Laporan Keberlanjutan) that may be
downloaded from the company website at www.telkom.co.id.
Strategy and Scope of activities
The implementation of Telkom TJSL has the theme of “Telkom
Indonesia For Indonesia” which covers the issues of Telkom’s
social responsibilities that are deemed relevant and significant, by
emphasizing the three principles of Telkom TJSL, which are:
1. Digital environment, which is the development, provision and
management of telecommunication infrastructure and various
facilities of information and communication technology (ICT)
to support and connect all activities of the society, including
the environment conservation activities.
2. Digital Community, which is the support for community
empowerment through education on optimization of the ICT
utilization to assist the activities of people’s daily lives.
3. Digital Economy, which is the development of ICT in various
public services used by the society, as well as the support
on micro and medium enterprises, especially in the creative
industry sector, in relation to the optimization of ICT utilization.
These Telkom TJSL principles shall be implemented in various
programs which include social responsibilities to the customers,
employees and environment as well as the societiy’s social and
economy development.
Budget And Realization
Budget of Telkom TJSL comes from the operational expense which
is recorded as the budget of TJSL pursuant to the Regulation of
Board of Directors No.PD.701.00/2014 dated 14 October 2014.
Total funds that have been allocated for the year of 2016 was in the
amount of Rp24.13 billion and it has been realized up to the amount
of Rp19.26 billion. Such amount of budget is increased compared to
the year of 2015 which was Rp18.25 billion.
SOCIAL RESPONSIBILITIES
TO THE CUSTOMERS: TO
PRIORITIZE THE CUSTOMERS
Telkom Group produces telecommunication,
information
and digital products and services; therefore, the information
regarding consumers health and safety are not as relevant and
significant and also not available to be presented in the Report.
Moreover, Telkom Group provides information of goods and/or
services to the customers through the labeling or goods and/
or services such as fact sheet, catalogue, manual, and other
forms. The provision of information of goods and/or services is
required to make it easy for customers to use and maintain the
quality of goods and/or services that have been purchased.
Enhancing Customer Satisfaction
As part of our commitment to conduct efforts to meet customer
expectations, we have realized various programs aimed at
increasing customer satisfaction, whice are the following:
• Telkom Integrated Quality Assurance (TIQA) Program
Enhancing employees’ orientation to be more concerned
about the customers’ satisfaction to the service, which is
done through the implementation of the Telkom Integrated
Quality Assurance (TIQA) program using the ROSE (Raise
on Service Excellence) framework.
• Warranty After Sales
The application of
fair compensation through the
implementation of post-sale warranty (service
level
guarantee/SLG) in order to ensure post-sale service
compliance are implemented.
• Customer service
The implementation of service policies, as Telkom’s
commitment to provide the best service to customers,
include:
o Service Delivery
Determination of the management of Service
Level Agreement (SLA) provision for the control
of service delivery, especially in relation to network
infrastructure.
o Service Assurance
Determination of product standards and a basic
solution using service
level guarantee (SLG)
by involving Engineers on Site (EoS) to assist
the problem handling activities located at the
customer’s location or at the Telkom’s office with
both shared and dedicated EoS.
o Measurement of Quality of Service
We measured the quality of service at various
stages in accordance to the service processes. In the
process of interaction with distribution channels, we
conducted mystery shopping and mystery calling
to ensure that quality service standards are applied
consistently. An indicator of the measurement
results is the Service Quality Index that is monitored
and evaluated every month.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Customer Complant Handling
For cellular customers, Telkomsel has a call center with
the “Caroline” trade mark, which is an abbreviation of
We provide a wide range of facilities and infrastructure
Customer Care Online. Caroline can be contacted through
that enables customers to submit their complaints on
the following numbers:
the quality of products and services that do not conform
• “133” by Halo customers;
to the qualifications that have been previously offered.
• “188” (24 hours, fees apply) by simPATI and Kartu As
The general policy is that a complaint regarding the
customers;
compatibility between product brochures with actual
• “0807-1811811” (local landline tariff) for the national
products is resolved in less than 24 hours. However,
level.
the settlement of customer complaints associated with
administrative issues and disputes regarding fees require
2. The Segment of Corporate Customers
a longer time, due to the stages of verification.
Telkom has an account management team in managing
the relationship with corporate
We categorize the handling of customer complaints into
customers which is supported with Engineer on Site
two groups.
1. Personal Customer Segment
(EoS) for priority customers, Corporate Customer
Access Network (CCAN) Team for service delivery and
Corporate Customer Care Center (C4) to handle the
a. Telkom provides a customer service center that
customers complaint which is contactable through the
can be directly visited in every regional office and
number “500250” and email: tele-am@telkom.co.id for
branch office, known as Plasa Telkom.
business customers and free special service for enterprise
b. Telkom also provides an online complaint center in the
customers
through
the number
“08001Telkom”
Company’s website (www.telkom.co.id) and the “147”
(08001835566) and email: c4@telkom.co.id.
call center.
SOCIAL RESPONSIBILITIES TO THE EMPLOYEES:
HUMAN CAPITAL WITH DIGITAL KNOWLEDGE
Telkom Group ensures gender equality and work opportunity equality to employees who are competent and have
the expertise as well as the plan for career development. In the implementation of election of members of Board of
Directors and Board of Commissioners, Telkom Group does not consider gender as a specific issue. This is reflected
as two Board of Commissioners members are women, namely Hendri Saparini and Pamiyati Pamela Johanna Waluyo.
Gender Equality
Gender quality it also represent in our recruitment process for new employees, competency development, managerial
position and remuneration.
a. Gender Equality in Recruitment
The following table presents the data of total employees recruitment of Telkom Group based on gender.
Classification
New employees:
New employees per age group
18-25-year-old
26-30-year-old
Total
2016
2015
Men
Women
Total
Men
Women
Total
200
20
220
202
24
226
402
44
446
170
66
226
200
30
230
370
85
455
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
b. Gender Equality in Competency Development
The following table presents the data of competency development of Telkom Group based on gender.
Type of Training
Participation
Certification Training
SUSPIM Training
Regular Training
Technical Operational
Management
Total
Men
Women
308
446
19,849
12,385
7,464
20,603
118
62
5,598
3,493
2,105
5,778
2016
Total
2015
Hour
Participant
Training
Men
Women
Total
Hour
Training
426
508
14,168
38,880
471
243
25,447
498,885
13,335
15,878
177,191
9,569
321,694
3,883
9,452
26,381
551,933
14,049
168
28
3,179
488
2,691
3,375
639
271
21,712
21,680
16,514
379,389
4,371
111,913
12,143
267,476
17,424
422,781
c. Gender Equality in Managerial Position
The following table presents the data of managerial positions of Telkom Group based on gender.
Managerial Position
Band Position I
Band Position II
Band Position III
Total
Men
2016
Women
Total
Men
2015
Women
Total
110
420
1,661
2,191
8
40
212
260
118
460
1,873
2,451
92
402
1,686
2,180
6
28
205
239
98
430
1,891
2,419
d. Gender Equality in Remuneration
In the aspect of remuneration, Telkom Group complies with the Government Regulation regarding the standard of
regional minimum wage (Upah Minimum Regional - UMR). During 2016, there was no employee of Telkom group who
received remunerations below UMR.
The following table presents the data of remuneration of Telkom Group based on gender.
Position
Senior Management
Mid Management
Supervisor
Others
Employee Turn Over
Men
(Index)
Women
(Index)
1,00
1,00
1,00
1,00
1,00
1,00
1,00
1,00
We always endeavor to create and maintain comfortable working environment, work life balance, good employee
management policy and appealing renumeration package so that Telkom’s employee turnover rate is relatively low.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS The following is a table of comparison of Telkom employee turn over rate, not including subsidiary entities, in the last
two years.
2016
2015
2014
2013
2012
Total number of Telkom Employees
15,018
16,097
17,279
17,881
19,185
Employee turnover rate
• By own request/voluntary
• Becoming a political party official
• Becoming an SOE director/ government official
• Disciplinary misconduct
• Marry another Telkom employee
11
11
0
0
0
0
8
8
-
1
2
-
20
17
-
-
1
2
14
14
-
-
-
-
Turn Over percentage (%)
0,01
0,07
0,12
0,08
22
10
-
12
-
-
0,11
Occupational safety and Health (OSH)
For Telkom, a good performance of OSH, which is embodied with the achievement of zero accident and low levels of
absent, will increase employees productivity and ultimately support the improvement of operational performance as
well as financial performance of the Company, which also means meeting the expectations of employees as one of
the stakeholders in a strategic position. The implementation of OSH aspects itself is included in point 3 of the global
sustainable development goals (SDGs): “Good Health and Well-Being”, and therefore, Telkom has interest in recording
the best performance of OSH aspects.
We organized Zero Accident Program based on labor legislations and OSH regulation from the local Office of Manpower.
This program is evaluated and redeveloped every year. The following table represent the data of safe work hours Telkom
for period 2014-2016.
Location
Telkom Witel Jabar Barat Utara (Bekasi)
Telkom Witel Jabar Barat (Bogor)
TelkomWitel Jakarta Barat
Telkom Witel Jakarta Selatan
Telkom Witel Jakarta Timur
Telkom Area Jakarta Utara
Telkom Area Tangerang
Telkom Regional Sumatera
Telkom Regional Jawa Barat
Telkom Regional Jawa Tengah
Telkom Regional Jawa Timur
Telkom Regional Kalimantan
Kawasan Timur Indonesia
Telkom GMP Bandung (Japati)
Telkom GMP Jakarta
Telkom Area Jakarta Pusat
Witel Riau Kepulauan (RIKEP) Batam
Witel Riau Daratan (RIDAR)
DIY
Maluku Timur
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Safe Work Hours
2016
2015
2014
1,110,416
1,988,131
3,764,728
2,786,477
2,296,028
3,009,952
3,631,392
18,012,836
5,658,458
5,658,458
12,314,243
5,107,194
5,592,672
3,241,802
3,642,121
4,516,536
1,670,056
817,656
729,414
3,591,120
8,666,697
4,265,880
1,114,848
2,048,184
2,483,192
3,204,192
13,848,352
5,171,923
7,017,171
10,828,032
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
3,148,888
2,181,146
2,458,200
1,704,260
1,738,720
2,207,095
2,683,906
8,884,232
5,160,189
1,589,177
9,152,000
4,471,856
8,186,134
3,740,736
3,679,508
3,809,288
-
-
-
-
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Employee Complaint Handling
We provide employee corner applications to help
employees find and study the human resources policy
SOCIAL RESPONSIBILITIES TO THE
SOCIETY’S SOCIAL AND ECONOMY: TO
SYNERGIZE AND TO BE DEVOTED
Initiative for Telkom’s social responsibilities to the aspect of the
services and to act as a means for employees to give
society’s social and economy shall be directed to develop the
inputs to the management, which consists of:
system of digital economy. This constitutes an important matter
1. Employee helpdesk - employee feedback management
because it supports the development of digital economy in
program,
ranging
from providing
feedbacks,
Indonesia. In conducting such effort, Telkom Group synergizes
responding to feedbacks, up to documenting and
both internally and externally with many parties, be it the
conducting a review as a feedback to the management.
Ministry, SMEs as the partners to be developed, or other SOEs.
The service provided is web-in service, email-in service
through HR_helpdesk@telkom.co.id or phone-in
SOE Creative House
service at number 1500305.
2. Employee wiki - search engine services to search for
SOE Creative House constitutes the synergy program among
answers, definition as well as procedures of human
SOEs in improving the quality of SMEs in Indonesia. The main
capital management is now quick and easy to use. By
goal of Telkom’s involvement is to assist SMEs in improving the
entering keywords that you would like to know about,
quality of production, marketing and sales of goods as well as
Employee Wiki can give you the answer.
logistic aspect. This program has been determined as the knot
3. Employee aspiration - an adaptation of the Employee
for three development areas, which are:
Suggestion System (ESS), which is the mechanism
used by the Company to collect employees’ creative
ideas, which are suggestions from employees that are
collected, classified and sent to an expert or committee
to be evaluated. After that, the advice can be adopted
by the Company, and in this case, the company can
• Center for competence; to assist in improving the
competence in relation to the development of products,
management and other technical operations.
• Center for commerce; to assist the marketing and sales,
especially to support SMEs in utilizing the digital advertising,
digital payment, e-commerce and blanja.com as the
also provide rewards.
marketing and sales facility.
4. Employee reference – a catalog for valid human capital
• Center for capital; to assist SMEs in the funding.
policies that provides a brief explanation of each
required policy as well as its regulatory documents.
Currently, there are 25 SOEs involved in SOE Creative House
and it is planned to be established in 514 regencies. Telkom
itself, by the end of 2016, has been present in 15 cities. In 2017,
Telkom is expected to have implemented this program in all
467 targeted cities.
One of Telkom’s activities in supporting SOE Creative House
is to organize O2O sales channel. Telkom provides the digital
application and digital kiosk which become the outlet for
people with low literacy. Digital kiosk will be stationed in
the post office so that people may shop through the digital
application and directly order the desired goods.
SOE For the Nation - SOE Creative House
In the program of SOE Creative House, Telkom Group gave
the support in the form of the training of business to be
digitalized into the e-commerce platform, www.blanja.com.
With this SOE Creative House, Telkom hopes that the actors
of SME would be able to utilize the same platform to sell
products of both partnered SME and the SOE.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS The Development of Digital Startup
Telkom Group has the entrepreneur development program which has its basis on the ecosystem of digital startup. This program has
some activities, which are the process of incubation, acceleration and funding through the capital venture. Bandung Techno Park,
Bandung Digital Valley and Jogja Digital Valley has become the backbones of the incubation in three cities. The participants that
pass the selection of incubation then will join the acceleration program in Jakarta Digital Valley. Digital Startup that has the potential
will be assisted with funding by Telkom through its subsidiary, MDI.
Incubation
Acceleration
Venture
Product Validation
Business Model
Validation
Market Validation
Value Validation
Kampung Digital (Digital Village)
Digital Village constitutes a program of Telkom TJSL to stimulate the development of digital economy in the real sector.
The pilot project of Digital Village has been conducted in three sub-district located in the area of Sleman Regency. This
program supports the farmer to utilize the digital technology to improve the quality of farming activities.
Indonesia Digital Learning (IDL) & My Teacher My Hero
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Telkom Group Gives Back in 2016 (Telkom Group Berbagi 2016)
In the holy month of Ramadhan and in order to celebrate Eid Mubarak 1437H, Telkom Group organized the Program of
Telkom Group Gives Back in 2016, consisting of:
o Telkom Group Ramadhan Safari of 2016, with the donation activities to 3,000 orphans.
o Cheap Market, which was conducted within the SOE Ramadhan Safari, to provide and sell 29,000 packages of staple
food with a cheap price at 29 regencies/cities in Indonesia, as well as breaking the fast with 3,000 orphans.
SOE For the Nation - 71st anniversary of RI
SOE To Teach
Directors of SOEs perform as teachers to inspire
and motivate students through a variety of
stories about their industries
Low-Priced Market
Distribution of aid to the less fortunate and the
disabled in the form of food packages
Development of Remote, Border and Conflict-
Prone Villages
Village gate establishment, community
development and communication infrastructure
development
Renovation of Houses Program
Tribute to the citizens who joined the armed
units officially recognized by the government
and actively participated in battles defending the
Unitary State of the Republic of Indonesia
Establishment of Daycare Center
Construction of facilities for a daycare center,
equipped with various facilities such as a
playground, children’s library, learning facilities
and nursing area
Archipelago Awareness for Students
The instillation of a sense of pride as citizen
shaving a richness diversity of the Archipelago
Consultation for Ex-Convicts
Business motivation and mental counseling to
encourage ex-convicts
Provision of Clean Water Facilities and Public
Toilets (Mandi Cuci Kakus)
Construction of Clean Water Facilities and Public
Toilets (Mandi Cuci Kakus/MCK) in several places
to improve public health through the provision of
more hygienic sanitation facilities
Consultation for Ex-Athletes
Consultation for Ex-Athletes in the form of
mentoring and monitoring for a period of 6
months and providing assistance of a total of 100
million Rupiah
Aid for Prayers Facilities
Distribution of aids in various forms of repair
and construction of prayers facilities across the
working areas of Telkom Indonesia
Household Electrification
Electrical installation in 14 houses and provision
of assistance of electricity token for 1 year
Natural Disaster Assistance
Aids for flash floods in some areas of Garut and
Sumedang Regency, West Java
Free repairs for 1000 mobile phones
In support of the SOE for the Nation (BUMN Hadir untuk Negeri) and the 2016 Christmas and New Year Securities
(Siaga Natal dan Tahun Baru 2016) programs, Telkom held an event of Free Repair Services for 1000 Mobile Phones
(Service 1000 Handphone Gratis) as part of its CSR program for the general public. The event sets a new record at
the Indonesian Museum of Records.
This Program constitutes the synergy of Telkom Group with other SOE as the form of dedication and presentation of
SOE to Indonesia in the celebration of the 71st anniversary of RI. This Program was prepared by the Ministry of SOE and
Telkom has the mandate to manage such program in the region of West Java.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Disability Care
MoU between KEMENAKER and SOE employ
the Disabled in BUMN.
TelkomGroup has employed people with
special needs (Disabled) since 2014 currently
in the total of 14 persons
Cooperate with DEPNAKER as well as the
organization for disabled people (PPDI,
PERTUNI, and PERTRI)
Cooperate with Kick Andy Foundation to
communicate this program to the public.
Constitutes CSR Program of Telkom within BUMN
for the Nation to Disabled people, whereby
Telkom
jointly with other BUMN give the
assistance to the Disabled Community to prepare
manpowers.
The assistance given include:
• Tools for disabled people
• Training and certification (including I-CHAT)
Awarding GANTARI for Disabled people who
inspire and contribute to the environment and
community
DISABILITY
CARE
Disability Care is the program that constitutes the continuation of MoU between the Ministry of Manpower and Ministry
of SOE. Through this program, Telkom Group has employed employees with special needs (disabled) since 2014 and
it has planned to recruit more employees with special needs, including to develop the application of i-CHAT to help
deaf people in the communication. The given assistance covers the aids for disability and Training and Certification
(including I-CHAT), Awards for the disabled who inspire and contribute to the environment and community.
Employee Volunteer Program
Telkom Group has an Employee Volunteer Program (“EVP”) as the place for community social activities that are initiated by
people of Telkom Group (“Telkomers”) either individually or through the community in the environment of Telkom Group.
There are two groups of EVP participants, namely:
1. EVP Role Model, means social activities of Telkom’s employees conducted by senior leaders as the role model in
Telkom Group.
2. EVP of Employees Community, means social activities conducted by the employees within the employees’
communities.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS EVP activities are divided into four categories, namely:
• Service for Education
Service for Education conducted during 2016 is the teaching activity in formal or non-formal education institutions.
• Service for Cultural Conservation
Social Activities in the sector of traditional culture are conducted through the teaching activities or active participation
in the cultural developments for the young generation.
• Service for Environment
Service for Environment (saveplanet) includes a direct involvement in the social activities for the improvement of
environment, such as activities to clean the environment conducted by Bicycles and Motorcycles Community as well
as the activities to plant trees conducted by the Labor Union of Telkom.
• Service for Social Community
Service for Social Community includes the Telkomers’s social activities that become the initiator of social actions,
such as through the provision of clean water to the village community that suffers from drought also conducting the
bike to work campaign in Bandung City.
Telkom facilitates the communication and information facilities of EVP activities through the website (http://www.evp.
telkom.co.id). In 2016, Telkom recorded 5,352 Telkomers have been registered in EVP program.
SOCIAL RESPONSIBILITIES TO THE ENVIRONMENT: TO SUPPORT
THE ENVIRONMENT CONSERVATION
We participate in the environment conservation program called Telkom Go Green Action. This Program is coordinated
by Telkom Property and covers all operational aspects of Telkom including the aspect of office building management.
We have conducted various operational initiatives as the realization of participation in the environment conservation.
Such initiatives are as follows:
1. Energy saving and mitigation of carbon dioxide emission.
Since 2009 we have implemented the program which was designated to reduce the use of electric energy in the
operational activities. Therefore, we also contributed to the mitigation of carbon dioxide emission which is also
produced by the power plant that are using fossil fuel.
Such program not only reduced the emission of C02, but also gave the effect on the reduction of fee incurred by the
company as shown in the following table:
Data on the Saving for Electric Consumption from the Initiative to Use LED Lamps.
No Year
Total Locations
Total Installations
Saving of Kwh
Saving of Rp
Reduction of (Kg
CO2)
1
2
3
2014
2015
2016*
* In 2016 no additional of LED lamp.
84
191
0
48,118
34,783
0
8,920,043
8,147,754,217
7,947,757.92
12,733,125
13,048,932,710
11,345,214.59
7,873,951
8,259,202,854
7,015,690.35
Data on the Saving for Electric Consumption from the Initiative to Use the Environmentally Friendly AC.
No
Year
Total Locations
Total Installations
Saving of Kwh
Saving of Rp
Reduction of (Kg
CO2)
1
2
3
2014
2015
2016
15
460
0
202
6,642
0
28,690
37,297,260
25,562.97
2,222,807
2,889,649,620
1,980,521.39
1,246,703
1,620,713,952
1,110,812.41
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 2. Energy Efficiency in Office Buildings
We restructured the system of energy supply in the office buildings that we manage to improve the efficiency in
the use of power energy. Energy efficiency of such office buildings reduced the total of power utilization from
478,923.86 Mwh in 2015 to become 415,428.32 Mwh in 2016. In addition, such energy efficiency also reduced the
emission of CO2 from 426,714 Ton CO2 Eq, to become 370,147 Ton CO2 Eq. As shown in the following graphic:
500,000.00
400,000.00
300,000.00
200,000.00
100,000.00
0.00
Konsumsi Lsitrik (Wmh)
Emisi CO2 (Ton Eqv CO2)
2014*
2015
2016
3. The Use of Renewable Energy
We have also conducted the change of our energy
consumption from the non-renewable energy to the
renewable energy, such as the use of wind and solar
5. The Management of Garbage and Waste
of Hazardous and Toxic Materials (Bahan
Berbahaya dan Beracun - B3)
We implement the policy of waste selection into 3
energy as the mitigation efforts to carbon dioxide
major groups namely organic waste, non-organic
emission. Thousands of environmentally friendly BTS has
waste, and B-3 waste.
been operated by using renewable energy namely solar
cell and micro hydro power. Carbon dioxide that has been
The management of organic and non-organic were
reduced has reached 961.39 Ton CO2 Eq per year.
conducted through the cooperation with local Cleaning
Office. Meanwhile for the waste under the group of B-3
In addition, we utilized the power plant that combines
waste, the management is conducted by the third party
the use of generator, solar cell and wind power for the
having the authority to manage such wastes. However,
installation of BTS in certain areas having sufficient
in regard to waste produced from mercury lamps
wind and solar energy potential. The use of such
which is considered B-3, we assign its management
renewable energy was saving fuel up to 98% meanwhile
to the producers of Philips and Osram light since both
2% of fuel is still needed to maintain the generator set.
companies have the facilities to manage mercury waste.
4. The Concept of Paperless Office
We have
implemented a concept that uses an
6. The Management and The Use of Recycled
Water
We commit to manage water and conduct the efficiency
application for online official note and it has been
in using water. We implement the policy through the
implemented nationwide. During 2016, official note
save the water campaign and by installing automatic
letter made through the application of online official
faucets. We only use the water to support building
note has reached 281,236 (2015:294,563) pieces. With
operation and to fulfill the need to drink for employees
the assumption that the average official note consists
which is mainly supplied by regional enterprise for
of 2 sheets of paper and addressed to 3 recipients and
drinking water (Perusahaan Daerah Air Minum - PDAM).
further each forwards it to 3 persons, then by using
the application of online official note we have saved
the papers in the amount of 10,124 (2015:10,604) ream
We also conduct the installation of biopori and water
reservoir around the office to reserve the rain water as
of papers.
248
well as conducting water recycle in a simple way by
using charcoal-based filter. The recycled water will then
be used to wash the operational vehicles and to water
the trees in the office park.
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 250
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS PaRtneRShiP &
Community
DeveloPment
PRogRam (PCDP)
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253
PCDP Summary
PCDP Report
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS PaRtneRShiP anD Community DeveloPment PRogRam
(PCDP) SummaRy
PCDP
Rp442.89
billion
Community DeveloPment PRogRam
Rp81.97 billion
PaRtneRShiP PRogRam
Rp360.92 billion
2016 Partnership Program Realization
2016 Community Development Program Realization
trading
industry
Aid for victims of natural disasters
Rp0.94 billion
Rp203.48 billion
6,371 Partners
Rp60.92 billion
1,784 Partners
Development of
education and training
Rp35.68 billion
livestock
Rp13.29 billion
351 Partners
Fisheries
Rp7.97 billion
278 Partners
Plantation
Rp5.40 billion
201 Partners
others
Rp1.16 billion
22 Partners
Service
Rp61.52 billion
1,751 Partners
Farming
Rp7.18 billion
200 Partners
Development of people’s health facilities
Rp10.42 billion
Development of public facilities
Rp13.37 billion
Construction and repair of prayer facilities
Rp10.62 billion
Environment Conservation
Rp0.91 billion
Eradication of poverty
Rp1.64 billion
Improvement of partners’ capacity
Rp8.39 billion
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS RePoRt on the PaRtneRShiP anD Community
DeveloPment PRogRam (PCDP)
For Telkom, Partnership and Community Development Program (PCDP) is not only fulfilling an obligation of an SOE, but
also the effort to manage the concequences of the policies and operational activities to the community and the natural
environment in a transparent and ethical manner. The implementation of Telkom PCDP is also in line with the concept of
3P (profit, people, planet) which has the synergy with Telkom’s Corporate Social Responsibility Program (Telkom TJSL). In
addition to it, Telkom PCDP also supports the activities to achieve Telkom’s objective to develop digital economy in Indonesia.
legal BaSiS anD gooD goveRnanCe oF PCDP
Telkom’s commitment in implementing PCDP is in line with and refers to ministerial regulation number PER-09/
MBU/07/2015 regarding Partnership and Community Development Program.
legal BaSiS FoR the management oF PCDP
• Article 88 & Article 90 of the Indonesian Law No.19
of 2003 regarding BUMN
• Ministerial Regulation Number PER-09/MBU/07/2015
Partnership Program
1. Digitalization of Partnership Programs
regarding the Partnership Program and Community
2. Enhancement of Partners’ Capacity
Development Program of SOE
• Company Regulation Number PD.702.00/r.00/
PR000/CDC-A1040000/2015 dated December 10,
2015 regarding the Management of PCDP.
• Regulation of the Company (Persero) PT
Telekomunikasi Indonesia Tbk. Number:
PR.702.01//r.00/PR000/CDC-A1040000/2016
dated June 2, 2016 regarding the Guideline for the
Implementation of PCDP Operation.
Community Development Program
1. Aid for Natural Disasters
2. Aid for Education
3. Aid for People’s Health
4. Aid for Public Facilities
5. Aid for Prayer Facilities
6. Aid for Nature Conservation
7. Poverty Alleviation
The implementation of Telkom PCDP is under the controlled by Community Development Centre (CDC) Unit, while the
other programs of TJSL Telkom namely Telkom CSR PR is controlled by Corporate Communication sub-department. In
conducting PCDP activities, CDC may coordinate with the relevant working units or subsidiaries.
The implementation of Good Corporate Governance (GCG) in the management of funds and various PCDP activities
constitute the important step from Telkom that must be complied with, as a State-Owned Enterprise (SOE) as well as a
public company, which has listed its shares in the New York Stock Exchange and Indonesia Stock Exchange.
Below is the diagram illustrating Telkom’s good governance in implementing the Partnership and Community
Development Program (PCDP)
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS BaSiS FoR the gooD CoRPoRate goveRnanCe oF telKom PCDP
gmS:
• To ratify the Annual Report of PCDP as well as to give the release and discharge of responsibilities (acquite
at de charge) to the Board of Directors and to release the Board of Commissioners from the supervision of
the PCDP management in the financial year that has been reviewed by Auditor.
Board of Commissioners
To ensure the Management of
PCDP has complied with the
prevailing regulations and to
approve and determine the
budget for PCDP which shall be
calculated as costs
assignment
for Supervision
assignment for
management
Board of Directors,
In the management of PCDP BOD
shall be obliged to convey the
report on the implementation of
PCDP to the Minister/Shareholders
with a copy to BOC
Report of
accountability
• Financial Report
• Annual Report of
PCDP
management of
PCDP
audit Committee
performs its duties
based on the
Decision of
the Board of
Commissioners
assignment
of audit
geneRal auDit oF PCDP
Prior to the General Audit
of PCDP, KAP must submit
the Audit Plan to the Audit
Committee as the assignor
Performing
the audit
management
implementation
Management of
Telkom PCDP
(Community
Development
Center)
In implementing PCDP, CDC shall refer to the Blueprint of PCDP which shall be valid for five years. The blueprint shall
become the basis for the annual plan of PCDP and also the reference in measuring the satisfaction of beneficiary and
partners. To maintain the accountability of PCDP implementation, each year Telkom conducts a general audit towards
the Annual Report and Financial Report of PCDP.
Below diagram explains the corporate governance of PCDP in managerial and operational level in the implementation
of PCDP by CDC.
CoRPoRate goveRnanCe oF CDC (the management oF PCDP)
Blueprint of CDC
long-term Plan (5
years) of telkom’s
PCDP management
general audit of PCDP
Prior to General Audit of PCDP, KAP must
convey the Audit Plan to Audit Committee as
assignor
measurement of mB
& People’s opinion
to the telkom’s
PCDP management
Budget Committee
(the Control of
Quarterly Budget)
Community
Development Center
(management of
PCDP)
information
management System
of PCDP
RKm & RKa PCDP
Short-term Plan
(1 year) of the
telkom’s PCDP
management
Business Process
of the PCDP
management as
determined by
Sgm CDC
• Financial Report of PCDP
• Annual Report of PCDP
gmS:
To ratify the Annual Report of PCDP as
well as to give the release and discharge of
responsibilities (acquite at de charge) to the
Board of Directors and to release the Board
of Commissioners from the supervision of the
PCDP management in the financial year that
has been reviewed by Auditor.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS the oBjeCtive oF PaRtneRShiP anD Community DeveloPment PRogRam
Telkom PCDP has a general objective which is to support the economy growth and improve people’s welfare, as
indicated by the parameter of national economy growth, the percentage of contribution from economy sector and the
improvement of Gini Index which show the index of welfare gap between society groups. In particular, Telkom PCDP is
shown through the people empowerment in the economy sector and social sector which are related to Telkom’s main
business directly or indirectly.
Telkom see that PCDP has been implemented in line with the objective of global development under the concept of
SDGs (Sustainable Development Goals), which covers:
• Objective 1 – “Without Poverty – To end the poverty in any form across the globe.”
• Objective 3 – “Good Health and Welfare – To ensure a healthy living and to promote the welfare for all people of
any age”
• Objective 8 – “Economy Growth and Proper Employment – To support the sustainable and inclusive economy
growth, to provide job opportunities as wide as possible, as well as to create proper employments for all”.
• Objective 11 – “Sustainable City and Community – To develop the inclusive, safe, high quality, resilient and sustainable
cities and communities”
StRategy FoR the Realization oF telKom PCDP
Telkom as the Digital Telco Company is actively involved in the community development to accelerate the realization of
digital society, such as through Partnership and Community Development Program (PCDP). This Program constitutes
the implementation of three pillars of Social and Environment Responsibility program (TJSL/CSR) of Telkom, namely
People, Planet & Profit (3P).
3 PillaR CSR PRogRam
RealiSaSi
PeoPle
1.
2.
3.
Education & Training
Public Health
Place of worship
training
&
education
1.092 Digital Library in di 639 Cities
1.
2. My Teacher My Hero (IDL) *
Digital Training for 2.400 Teachers
3. Broadband Learning Center (BLC)
& Digital Lounge
Planet
Victims of natural disasters
1.
2.
Public Facilities
3. Nature conservation
Facility
1.
“BUMN Hadir untuk Negeri” (SOE
for the Nation) Program
PRoFit
1.
2.
3.
Distribution of Partnership Fund
Poverty Alleviation
Small and Medium Enterprises
Capacity Building
Capacity
Building Sme
1.
Digitization of the Partnership
Program Management
2. Digital Training 1.871 participants
3. National & International Partner
Exhibition
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
exeCutive oRganizational StRuCtuRe
The Executive Organizational Structure of Telkom PCDP is as follows.
telkom group Ceo
human Capital
management Director
CDC
Finance Department
human Capital Department
CDC-Sub Department
SeCRetaRiat
DiviSion
PaRtneRShiP
DiviSion
enviRonment
DeveloPment
DiviSion
FinanCial
DiviSion
Planning
anD ContRol
DiviSion
PaRameteR oF SuCCeSS
Further, Telkom has set some parameters as the basis to examine the success of Telkom PCDP implementation of, which
are:
1. CSR-Indeks.
To measure the impact of CSR activities on customer loyalty and company reputation. In 2016, the CSR-Index shows
the value of 70.18, which illustrates that the CSR activities that we have done had 70% effect on customer loyalty
and the company reputation.
2. Net Promotor Score - NPS
To measure how often people recommend of Telkom products as the impact of CSR activities. NPS measurement
results in 2016:
NPS Pertnership Programe
PRomoteRS
46,69%
PaSSive
43.78%
DetRaCtoRS
9,73%
NPS = Promoters - Detractors
NPS Community Development Programe
PRomoteRS
45.70%
PaSSive
38.01%
DetRaCtoRS
16.29%
NPS = Promoters - Detractors
nPS
36,76%
nPS
29.41%
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS 3. The effectiveness of funds distribution for the Partnership Program.
This parameter compares the total funds for the Partnership Program that have been distributed to the partners of
Telkom with the total available funds in the ongoing year.
In 2016, the achievement of effectiveness level for the distribution of funds for the Partnership Program was 98.64%
with the score of 3 from the total available funds in the amount of Rp365,91 billion. This achievement is far better
compared to the level of effectiveness of the distribution in the year 2015, in the amount of 90,28% with the score of 3.
table of the effectiveness of funds distribution for the Partnership Program 2014-2016
Distributed amount
Available amount
Effectiveness level of the funds distribution
Score for the effectiveness level of the funds distribution
4. Payment Collectibility for the Partnership Program.
Source of Funds (billion Rp)
2016
2015
2014
360.92
365.91
98.64%
3
348.97
384.34
90.28%
3
411.72
498.92
82.52%
1
This parameter is measured by comparing the average balance of payment collectability to the total amount of loan
that have been distributed (loan balance).
The level of payment collectability for Partnership Program in 2016 has reached 88.54% with the score of 3. This
achievement is far better compared to the level of payment collectability in 2015, in the amount of 71,73% with the
score of 3.
table of Payment Collectibility for the Partnership Program 2014-2016
Collectability Level
The Score for Collectability Level
BuDget anD Realization
year
2014
2015
2016
82.02%
71.37%
88.54%
3
3
3
The Budget for Telkom PCDP is coming from the reserve of company’s profit based on the direction from the Ministry
of SOE. In 2016, Telkom distributed the PCDP funds in the amount of Rp442,89 billion. The distribution of funds for
Partnership Programs and Community Development Programs are in the amount of Rp360,92 billion and Rp81,97 billion
respectively or 81% and 19% from the total funds of PCDP.
The realization of distribution of PCDP funds for the financial year 2016 is presented in the following table.
table of the Distribution of Funds for the Partnership and Community Development Program for 2014-2016
no
1
2
type of Program
2016
2015
Rp billion
Rp billion
% of Change
Partnership Program
Community Development *)
Total
360.92
340.96
81.97
442.89
72.41
413.37
5.9
13
7.1
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Since 2001 to 2016, Telkom PCDP has distributed the
a. SmartBisnis
funds in the amount of Rp3,71 trillion, with the allocation
SmartBisnis constitutes a service application
for the Partnership Program in the amount of Rp3,10
for the proposal for funding in the digital-based
trillion and for Community Development Program in the
Partnership Program that is accessable by the
amount of Rp0,61 trillion distributed to 34 Provinces in
public through the website of smartbisnis.
Indonesia.
PaRtneRShiP PRogRam
Through this application, the proposal for funding
in the Partnership Program may be conducted at
any time without any necessity to visit Telkom’s
office.
The Partnership Program constitutes the empowerment
of people’s welfare which was conducted through:
b. Virtual Account
a) The grant of soft loan;
To improve the service for the transaction of
b) The training of enterpreneurship; and
loan repayment in the Partnership Program,
c) The development of creativity to UMKMs that
Telkom has also implemented the digital-based
constitute as partners.
installment payment through the virtual account.
Each partner which loan proposal has been
To
improve the quality of management
for the
approved will be granted with unique numbers
Partnership Program, in 2016 Telkom PCDP focused on
which have its function as the account for the
the implementation of 2 main activities that support the
development of digital economy, which are:
payment of installment. From 46,246 partners,
active partners are 33,983 partners or 73%.
1. Digitalization of the Partnership Program
Management
Telkom uses the digital technology in the data
management of partners in the Partnership Program
since 2007. Telkom implemented the service for
loan application in the Partnership Program through
smartbisnis website and the installment payment
through virtual account to ensure the transparency
and accountability of fund management.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS Digital telkom for Community
to receive proposals
to provide services
Sme Community
aSSiSteD PaRtneR
viRtual
aCCount
Sim PCDP
StaRBox
Information System Configuration for Partnership Program Management
2. Enhancement of Partner Capacity
Enhancement of Partner Capacity in 2016 conducted through digital tranings, national and international exhibitions,
and export traning.
a. Training for Digital UKM The Road to Global Market
This training was organized by Telkom since 2015 and continued in 2016 to assist the partners in promoting
and marketing their products to the global market by using the facilities of blanja.com. In 2016, Telkom has also
organized the training with the total participants of 1, 871 UKMs, 92 of them are Telkom’s Partners.
b. Training for Export
Telkom also held a training for export so that the partners may know the procedures and requirements for
cross borders trading.
c. National and International Exhibition
In 2016, Telkom facilitated its partners to participate in exhibitions, namely Inacraft 2016, Safex exhibition in
Algeria, and Sail to Karimata with an international scale organized by the Department of Maritime and Ocean.
In 2016, the Partnership Program funds were disbursed in the amount of Rp 360.92 billion to 10,956 Assisted Partners
from various sectors including: industry, trading, farming, livestock, plantation, fishery, services and others. Set out below
are the realization data of numbers of Assisted Partners and Partnership Program Fund Disbursements per Sector and
per province.
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS table of total Partners and Distribution of Funds in the Partnership Program per Business Sector of 2014-2016
no.
Business Sector
1
2
3
4
5
6
7
Industry
Trading
Farming
Livestock
Plantation
Fishery
Service
8 Others
jumlah
CagR (%)
total Partners
total Distribution
(Rp billion)
2016
2015
2014
2016
2015
2014
1,784
6,371
200
351
201
276
1,751
22
1,895
6,972
229
429
207
333
1,896
20
2,183
6,675
222
428
203
296
2,116
40
60.92
56.37
70.50
203.48
193.97
206.22
7.18
13.29
5.40
7.97
61.52
1.16
6.77
12.81
5.56
9.21
55.32
0.95
6.72
14.83
6.36
9.75
70.27
11.77
10,956
11,981
12.163
360.92
340.96
396.42
-8.56%
-1.50%
5.85%
-13.93%
table of total Partners and Distribution of Funds in the Partnership Program per Province 2016
no
1
2
Aceh
North Sumatera
3 West Sumatera
4
5
6
7
8
9
10
11
12
Riau Mainland
Riau Island
South Sumatera
Jambi
Bengkulu
Lampung
Bangka Belitung
DKI Jakarta
Banten
13 West Java
14
15
16
17
Central Java
D.I Yogyakarta
East Java/Madura
East Kalimantan
18 West Kalimantan
19
20
21
22
23
24
25
26
27
28
Central Kalimantan
South Kalimantan
North Kalimantan
Bali
NTB
NTT
South Sulawesi
Central Sulawesi
South-east Sulawesi
North Sulawesi
29 West Sulawesi
30
31
32
Gorontalo
Maluku
North Maluku
33 West Papua
34
East Papua
260
Province
total Partner
total Distribution
(Rp billion)
223
478
249
250
171
274
112
136
186
146
594
265
2,053
1,328
161
1,430
455
321
237
236
79
121
84
73
367
169
81
133
24
148
79
121
40
132
5.75
12.85
6.80
6.90
5.68
7.76
5.80
5.42
5.34
6.25
24.20
9.99
67.20
44.91
6.40
46.83
12.86
10.81
7.43
6.43
3.26
6.87
3.67
3.19
7.73
4.82
2.87
5.71
0.76
5.92
1.55
4.47
0.80
3.68
total
10,956
360.92
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS The number of recipients of the Partnership Program
2. Aid for Education and Training
funds was decreased by 8.56% in 2016 compared to 2015,
Aid for education and training from Telkom, which
while the amount of funds being disbursed in 2016 was
is referred to as Indonesia Digital Learning, has the
increased by 5.85%, thus the average amount of loans in
highest portion in PBL with the purpose improving
2016 was higher than the previous year.
Community DeveloPment PRogRam
people’s capability to the use of digital technology and
to develop digital economy. Through this aid program,
Telkom provides the facility of Digital Libraries (PADI)
and implements the My Teacher My Hero Program as
The Environment Development Program is a program
well as develops the Facilities of Broadband Learning
of empowerment of the social conditions of the
Center (BLC) and Creative Camp.
communities in the business areas of the Company. The
focuses of assistance provided by Telkom during 2016
included the followings:
1. Aid for victims of natural disasters
Throughout 2016 there were several natural disasters.
Three events that received much attention because
of the impacts of the disasters were a flash flood in
Garut, West Java, a flood in Southern Bandung and an
earthquake in Pidie Jaya Regency, Aceh.
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the areas surrounding Toba Lake. The location for the Toba
Aid for people’s health was given by Telkom in the
Lake reforestation is at Sibatu Ni Loteng, Girsang Sipangan
form of Disability Care Program in collaboration
Bolong district, Simalungun Regency. 50 thousand trees
with Kick Andy Foundation, the prevention of rabies
were planted within 10 Ha of land. .
disease in Ambon, the distribution of basic food in
Ramadan in 29 Cities / Regencies across Indonesia
totaling 29,000 packages, donations to 3,000
orphans and sacrificing of 497 animals.
7. Aid for the Eradication of Poverty
Through the aid for the eradication of poverty, Telkom
expects to be able to improve the standard of living
of poor people either in the city or village areas. The
aid given was in the form of renovation 10 retirement
homes and the donation for the orphanages.
4. Aid for the Development of Infrastructure and Public
Facilities
The development of
infrastructure and public
facilities was implemented in the sector of facilities
and infrastructure of telecommunication, by taking
into account the direct or indirect impact to the local
economic activities. Such assistance include in the
form of procurement of Garden Alley in Makassar.
5. Aid for Prayer Facilities
The aid was distributed in various forms of repair or
In 2016, the distribution of the Environment Development
construction of prayer facilities in all working areas
Program funds gave priority to providing assistance in
of the Company. The aid was distributed in the
improving the quality of Indonesian society in anticipation
form of donation for the construction of mosques,
of the era of digitalization through Education and Training
construction of churches and construction of hindu
Development which spent Rp. 35.68 billion or 43.53% of the
temples. In 2016, Telkom distributed the aid for
total disbursements of the Environment Development Program.
prayers facilities in the form of renovation of The
The Public Utility assistance spent Rp. 13.37 billion or 16.31%.
Mosque of Al Ikhlas Waisai in Raja Ampat and the
However, the Company did not rule out the Environment
Church of GKPS Sipingan Panei Tonga Pematang
Development Program in other fields, with the total actual
Siantar.
6. Aid for Environment Conservation
disbursements of the Environment Development Program
amounting to Rp.81.96 billion or 99.95% of the disbursement
commitment of Rp. 82 billion. The following data presents the
As an effort to create an environmentally friendly areas, we
also conducted greening activities such as the reforestation
realization of total beneficiaries and the distribution of funds
for Telkom’s Community Development Program based on the
of a mangrove forest by planting mangrove seeds at the
program categories and province.
North Beach of Java in particular Mangunharjo Beach,
Tugu District, Semarang City and also the reforestation of
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
table of total Beneficiaries and the Distribution of Funds for Community Development Program in 2014-2016
no.
Business Sector
1
2
3
4
5
6
7
8
Aid for victims of natural disasters
Development of education and training
Development of people’s health facilities
Development of public facilities
Construction and the repair of prayer facilities
Environment Conservation
Eradication of poverty
Improvement of partners’ capacity
total
total aid objects
total Distribution (Rp billion)
2016
2015
2014
2016
2015
2014
20
492
154
221
382
30
22
115
17
336
62
170
219
27
2
42
69
683
220
262
515
39
8
0
1,436
875
1,796
0.94
35.68
10.42
13.37
10.62
0.91
1.64
8.39
81.97
1.30
41.15
1.47
15.74
8.47
0.75
0.01
3.52
72.41
4.37
40.83
8.49
9.48
16.23
0.80
1.04
0
81.18
table of total Beneficiaries and the Distribution of Funds for Community Development Program by Province in 2016
no
Province
total aid objects
total Distribution (Rp billion)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Aceh
Sumatera Utara
Sumatera Barat
Riau Daratan
Riau Kepulauan
Sumatera selatan
Jambi
Bengkulu
Lampung
Bangka Belitung
DKI Jakarta
Banten
Jawa Barat
Jawa Tengah
D.I Yogyakarta
Jawa Timur/Madura
Kalimantan Timur
Kalimantan Barat
Kalimantan Tengah
20
Kalimantan Selatan
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Kalimantan Utara
Bali
NTB
NTT
Sulawesi Selatan
Sulawesi Tengah
Sulawesi Tenggara
Sulawesi Utara
Sulawesi Barat
Gorontalo
Maluku
Maluku Utara
Papua Barat
Papua Timur
15
107
13
12
4
12
3
1
14
4
117
12
346
196
24
228
91
40
10
28
5
5
4
15
86
2
5
9
1
7
8
1
2
9
total
1,436
0.85
3.19
0.67
0.28
0.07
0.53
0.08
0.01
0.49
0.05
34.33
0.25
17.41
4.63
0.77
9.18
0.93
1.22
0.12
0.37
0.05
0.11
0.10
1.18
1.42
0.18
0.07
0.17
0.02
0.05
0.96
0.02
1.25
0.96
81.97
The actual disbursements of the Environment Development Program in 2016 amounted to Rp.81.97 billion, an increase of
13.20% from Rp.72.41 billion in 2015. The number of Aid Objects also increased by 64.11% from 875 aid objects in 2015 to
1,436 aid objects in 2016.
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266 Glossary
270 List of Abbreviation
272 Cross Reference to FSA Circulation Letter NO.30/SEOJK.04/2016
281
Feedback Form
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3G
The generic
term
for
third generation mobile
Broadband
A signaling method that includes or handles a relatively
telecommunications technology. 3G offers high speed
wide range (or band) of frequencies.
connections to cellular phones and other mobile devices,
enabling video conference and other applications
requiring broadband connectivity to the internet.
BSS
Base Station Subsystem, the section of a cellular
telephone network responsible for handling traffic and
3.5G
A grouping of disparate mobile telephony and data
signaling between a mobile phone and the network
switching subsystem. A BSS is composed of two parts:
technologies designed to provide better performance
the BTS and the BSC.
than 3G systems, as an interim step towards deployment
of full 4G capability.
4G/LTE
A
fourth generation super
BTS
Base Transceiver Station, equipment that transmits
and receives radio telephony signals to and from other
fast
internet network
telecommunication systems.
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,
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
tax, depreciation and amortization. Adjusted EBITDA
transmission, allowing multiple users to share the same
and other related ratios in this Annual Report serve as
frequency spectrum.
additional indicators on our performance and liquidity,
which is a non-GAAP financial measure.
ADS
American Depositary Share (also known as an American
CPE
Customer Premises Equipment, any handset, receiver,
set-top box or other equipment used by the consumer
of wireless, fixed line or broadband services, which is
Depositary Receipt, or an “ADR”), a certificate traded on a
the property of the network operator and located on the
U.S. securities market (such as New York Stock Exchange)
customer premises.
representing a number of foreign shares. Each of our ADS
represents 200 of our Series B shares having a par value
of Rp50 per share (“common stock”).
ARPU
Average Revenue per User, a measure used primarily by
telecommunications and networking companies which
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.
Bandwidth
The capacity of a communication link.
Bapepam-LK
Badan Pengawas Pasar Modal dan Lembaga Keuangan,
or the Indonesian Capital Market and Financial Institution
Supervisory Agency, the predecessor to the OJK.
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.
e-Commerce
Electronic Commerce, the buying and selling of products
or services over electronic systems such as the internet
and other computer networks
EDGE
Enhanced Data rates for GSM Evolution, a digital mobile
phone technology that allows improved data transmission
rates as a backward-compatible extension of GSM.
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Education and Entertainment.
Homepass
A connection with access to fixed line voice, IPTV and
broadband services.
Fiber Optic
Cables using optical fiber and laser technology through
which modulating light beams representing data are
transmitted through thin filaments of glass.
Interconnection
The physical linking of a carrier’s network with equipment
or facilities not belonging to that network.
Fixed Line
Fixed wireline and fixed wireless.
IP
Internet Protocol, the method or protocol by which data
is sent from one computer to another on the internet.
Fixed Wireline
A fixed wire or cable path linking a subscriber at a fixed
location to a local exchange, usually with an individual
IPO
Initial Public Offering, the first sale of stock by a company
phone number
to the public.
FTTH
Fiber To The Home are the implementation of fiber optic
network that reaches up to customer point or known as
customer premise.
IPTV
Internet Protocol Television, a system through which
television services are delivered using the Internet
Protocol suite over a packet-switched network such as
the internet, instead of being delivered through tradition
Gateway
A peripheral that bridges a packet based network (IP)
and a circuit based network (PSTN).
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
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.
ISP
Internet Services Provider, an organization that provides
access to the internet.
Mbps
Megabyte per second, a measure of speed for digital signal
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.
MHz
Megahertz, a unit of measure of frequency equal to one
million cycles per second.
GMS
General Meeting of Shareholders, which may be an
Annual General Meeting of Shareholders (“AGMS”) or an
Mobile Broadband
The marketing term for wireless internet access through a
Extraordinary General Meeting of Shareholders (“EGMS”).
portable modem, mobile phone, USB Wireless Modem or
other mobile devices
GSM
Global System for Mobile Telecommunication, a European
standard for digital cellular telephone.
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Multi Service Access Node, represent the third generation
Roaming
A general term referring to the extension of connectivity
of optical access network technology and are single
service in a location that is different from the home
platforms capable of supporting traditional, widely
location where the service was registered.
deployed, access technologies and services as well as
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.
Network Access Point
A public network exchange facility where ISPs connected
with one another in peering arrangements.
OJK
Otoritas Jasa Keuangan, or the Indonesian Financial
Services Authority, the successor of Bapepam-LK, is an
independent institution with authority to regulate and
supervise financial services activities in the banking
sector, capital market sector as well as non-bank financial
industry sector.
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.
Radio Frequency Spectrum
The part of the electromagnetic spectrum corresponding
to radio frequencies, i.e. frequencies lower than around
300 GHz (or, equivalently, wavelengths longer than about
1 mm).
Reverse Stock
The compression of shares to become smaller amount of
shares using higher value per share.
Satellite Transponder
Radio relay equipment embedded in a satellite that
receives signals from earth and amplifies and transmits
the signal back to the earth.
SCCS
Submarine Communications Cable System, a cable laid
on the sea bed between land-based stations to carry
telecommunication signals across stretches of ocean.
SME
Small and Medium Enterprise.
SMS
Short Messaging Service, a technology allowing the
exchange of text messages between mobile phones and
between fixed wireless phones.
Stock Split
Splitting the number of shares becoming more shares
using lower value per share.
SOA
Sarbanes-Oxley Act, effective from July 30, 2002, also
known as Public Company Accounting Reform and
Investor Protection Act and Corporate and Auditing
Accountability and Responsibility Act.
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.
RMJ
Regional Metro Junction, an inter-city cable network
installation service in one regional (region/province).
TIMES
Telecommunication, Information, Media, Edutainment and
Service.
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a normalized way to refer to transponder bandwidth it
simple means how many transponders would be used if
the same total bandwidths used only 36 Mt transponder
(1 TPE = 36 MHz).
Treasury Stock
Company’s share that has been buy back from the
outstanding share temporarily.
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.
VSAT
Very Small Aperture Terminal, a relatively small antenna,
typically 1.5 to 3.0 meters in diameter, placed in the user’s
premises and used for two-way communications by
satellite.
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Keyword
Description
AAG
ARPU
B2S
BEI
BSCS
BTS
BUMN
CAPEX
CDN
CFU
CGPI
CORE
COSO
CSR
CSS
DMCS
DR
DS
Asia America Gateway
Average Revenue per User
Built to Suit
Bursa Efek Indonesia
Batam Singapore Cable System
Base Transceiver Station
Badan Usaha Milik Negara
Capital Expenditure
Content Delivery Network
Customer Facing Unit
Corporate Governance Perception Index
Center of Reformation
Committee of Sponsoring Organizations of the Treadway Commission
Corporate Social Responsibility
Corporate Strategic Scenario
Dumai Malacca Cable System
Depository Receipt
Depository Shares
EBITDA
Earning Before Interest Tax Depreciation and Amortization
Edutainment
Education and Entertainment
EDC
ERM
ESOP
FTTH
Gbps
GCG
GHz
GPRS
GSM
HCM
ICT
Electronic Data Capture
Enterprise Risk Management
Employee Stock Ownership Program
Fiber To The Home
Gigabyte per second
Good Corporate Governance
Gigahertz
General Packet Radio Service
Global System for Mobile Telecommunication
Human Capital Management
Infomation and Communication Technology
ICOFR
Internal Control Over Financial Reporting
Indonesia Digital Learning
International Domain Name
Indonesia Global Gateway
The Indonesian Institute for Corporate Governance
Internet Protocol
Initial Public Offering
Internet Protocol Television
Internet Services Provider
IDL
IDN
IGG
IICG
IP
IPO
IPTV
ISP
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Description
KAP
KEMPR
KNR
KPPU
LSE
MAKE
Mbps
MDI
MHz
MSS
MVNO
NYSE
OLO
OTT
PaDi
PKBL
PSTN
Kantor Akuntan Publik
Komite Evaluasi Monitoring dan Perencanaan Penanggulangan Risiko
Komite Nominasi dan Remunerasi
Komisi Pengawasan Persaingan Usaha, or Commission for the Supervision of Business Competition
London Stock Exchange
Most Admired Knowledge Enterprise
Megabyte per second
Metra Digital Investama
Megahertz
Mobile Satellite Service
Mobile Virtual Network Operator
New York Stock Exchange
Other License Operator
Over The Top
Pustaka Digital
Program Kemitraan Bina Lingkungan
Public Switched Telephone Network
Perumtel
Perusahaan Umum Telekomunikasi
PN
PoP
Perusahaan Negara
Point of Presence
REKODE
Riset Kebijakan dan Otonomi Daerah
RKAP
RMJ
RUPS
RUPST
RUPSLB
Rencana Kerja dan Anggaran Perusahaan
Regional Metro Junction
Rapat Umum Pemegang Saham
Rapat Umum Pemegang Saham Tahunan
Rapat Umum Pemegang Saham Luar Biasa
SEA-ME-WE-5
South East Asia – Middle East – Western Europe 5
SEA-US
South East Asia-United States
SEC
SJC
SME
SMK3
SMS
SOE
SOX
STB
TIMES
UMTS
USO
VoIP
VSAT
Witel
Securities and Exchange Commission
South East Asia Japan
Small and Medium Enterprise
Sistem Manajemen Keselamatan dan Kesehatan Kerja
Short Messaging Service
State-Owned Enterprise
Sarbanes Oxley Act
Set Top Box
Telekomunikasi, informasi, media, edutainment, dan services
Universal Mobile Telephone System
Universal Service Obligation
Voice over Internet Protocol
Very Small Aperture Terminal
Wilayah Telekomunikasi
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NO.30/SEOJK.04/2016
CRITERIA
EXPLAINATION
PAGES
I
1
2
3
II
1
a.
b.
2
a.
FORM OF ANNUAL REPORT
Annual Report should be able to be reproduced in printed document copy and electronic document
copy.
Annual Report presented as printed document should be printed on light-colored, good quality, A4-
sized paper, bound and possible to be reproduced in good quality.
Annual Report presented as electronic document copy is the Annual Report converted to pdf format.
CONTENT OF ANNUAL REPORT
General Requirements
Annual Report should at least contain information about:
1) key financial data highlight;
2) share information (if any);
3) directors’ report;
4) board of commissioners’ report;
5) issuer or public company’s profile;
6) management discussion and analysis;
7) issuer or public company’s governance:
8) issuer or public company social and environmental responsibility;
9) audited annual financial report; and
10)statement of directors and board of commissioners on the responsibility for the annual
report.
Annual Report may present information in the form of images, graphs, tables, and/or diagrams by
including clear title and/or description to be easily read and understood.
Description of the Contents of Annual Report
Key Financial Data Highlight Highlights of Key Financial Data presents information in comparative
form over a period of 3 (three) financial years or since the commencement
of business if the Issuer or Public Company has been running for less
than 3 (three) years, and should at least contain:
✓
✓
✓
✓
✓
20
1) revenue;
2) gross profit;
3) profit (loss);
4) profit (loss) attributable to parent and non-controlling interests;
5) comprehensive profit (loss);
6) comprehensive profit (loss) attributable to parent and
non-controlling;
7) net profit (loss) per share;
8) total assets;
9) total liabilities
10) total equity;
11) profit (loss) to total asset ratio;
12) profit (loss) to equity ratio;
13) profit (loss) to revenue ratio;
14) current ratio;
15) liabilities to equity ratio;
16) liabilities to total asset ratio; and
17) other financial information and ratios relevant to issuer or public
company and their industry type.
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b
Share Information
PAGES
23-25
EXPLAINATION
Information of share (if any) at least contains:
1) Shares issued for three months period (if any) presented in
comparative form in the last 2 (two) financial years at least contain:
a) outstanding shares;
b) market capitalization by the price in the stock exchange where the
share is listed;
c) highest, lowest, and closing share price by the price in the stock
exchange where the share is listed
d) traded volume in the stock exchange where the share is listed.
2) In the event of corporate actions such as stock split, reverse stock,
stock dividend, bonus share, and par value decrease, share price
information referred to in point 1) should then include explanation
concerning at least:
a) date of corporate actions;
b) ratio of stock split, reverse stock, stock dividend, bonus share, and
par value decrease;
c) amount of outstanding shares before and after corporate actions;
and
d) share price before and after corporate actions.
3) In the event that the company’s share trade is suspended and/or
delisted during the year reported, Issuer or Public Company should
explain the reason for such suspension and/or delisting; and
4) In the event that such suspension and/or delisting referred to in point
3) still goes on until the final period of Annual Report, the Issuer or
Public Company should explain the action carried out by the company
in solving the matter..
c
Director’s Report
Report from the Directors at least contains:
1) brief description about the performance of issuer or public company,
34-40
that at least:
a) strategies and strategic policies of issuer or public company;
b) comparison between achievement of results and targets; and
c) constraints experienced by issuer or public company;
2) description of business prospects;
3) implementation of issuer or public company’s governance; and
4) changes in the composition of the board of directors and reasons for
such changes (if any).
d
Board of Commissioners’
Report
Report from Board of Commissioners’ at least contains:
1) assessment on the performance of the directors in managing the
28-32
issuer or public;
2) supervision of implementation of issuer or public company’s
strategies;
3) views on the business prospects of issuer or public company
established by the.;
4) views on the implementation of issuer or public company’s
governance;
5) changes in the composition of board of commissioners and reasons
for such changes; and
6) frequency and method of advising the member of directors.
e
Profile of Issuer or Public
Company
The Issuer or Public Copmany’s Profile at least contains:
1) name of issuer or public company, including, if any, changes in names,
reasons for such changes, and the effective date of name;
2) access to issuer or public company, including branch or representative
offices that enables people to obtain information:
a) address;
b) telephone number;
c) facsimile number;
d) e-mail address; and
e) web site address.
3) brief history of the issuer or public company;
4) vission dan mission of issuer or public company;
5) business activities under the latest articles of association, business
activities conducted during the financial year, and type of goods and/
or services offered;
6-9
7
50-51
48-49
52-53
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EXPLAINATION
6)organizational structure of issuer or piblic company in a form of
chart, of at least to 1 (one) structural level under the directors, with
name and position included;
7) profile of the directors, consisting of at least:
a) name and position that corresponds to the duties and
responsibilities;
b) latest photograph;
c) age;
d) nationality;
e) educational background.;
f) employment record, consisting of
(1) legal basis of being appointed as member of directors for the
first time at the related issuer or public company;
(2) double position, either as member of directors, commissioners,
and/or committee as well as other positions (if any); and
(3) work experience and the time period both inside and outside
the issuer or public company;
g) education and/or trainings participated by member of directors
in enhancing the competencies within a financial year (if any); and
h) affiliation with other member of directors, commissioners, and
major shareholders (if any), consisting of the names of affiliated
parties;
8) Profile of Board of Commissioners, consisting of:
a) Name;
b) Latest photograph;
c) Age;
d) Nationality;
e) Educational background;
f) Employment record, consisting of:
(1)Legal basis of being appointed as member of Board of
Commissioners that is not of Independent Commissioners at the
related Issuer or Public Company;
(2)Legal basis of being appointed as member of Board of
Commissioners that is of Independent Commissioners at the
related Issuer or Public Company;
(3) Double position, either as member of Borad of Commissioners,
Directors, and/or Committee, as well as other positions (if any);
and
(4) Work experience and the time period both inside and outside
the Issuer or Public Company;
g) Education and/or trainings participated by member of Board of
Commissioners in enhancing the competencies within a financial
year (if any);
h) Affiliation with other member of Board of Commissioners and
Major Shareholders (if any), consisting of the names of affiliated
parties; and
i) Independence Commissioners’ disclosure of independency in
terms of the board has served more than 2 period (if any).
9) In the event of a change in the composition of the Board of
Commissioners and/or Directors taking place after the fiscal year until
the deadline of Annual Report submission, management composition
stated in the Annual Report is then the composition of the Board of
Commissioners and/or Directors both the latest and the previous one;
10) Number of employees and description of the range of educational
background and ages in a financial year;
11) Name of Shareholders and ownership percentage at the end of
financial year. Information includes among others:
a) Shareholders having 5% (five percent) or more shares of Issuer or
Public Company;
b) Member of Directors and Board of Commissioners owning shares
of Issuer or Public Company; and
c) Group of public shareholders each having less than 5% (five
percent) share ownership of Issuer or Public Company;
12) Number of shareholders and ownership percentage per financial
year end presented in the following classifications
a) Local institution ownership;
b) Foreign institution ownership;
c) Local individual ownership ; and
d) Foreign individual ownership;
PAGES
62-63
74-83
64-73
7, 81-82
86-89
89-91
89-91
13) Information concerning major and controlling shareholder of Issuer
or Public Company, both direct and indirect, until the individual
owner, presented in the form of scheme or diagram;
92-93
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EXPLAINATION
f.
Management Discussion and
Analysis
14) Names of subsidiaries, associated companies, joint ventures in which
Issuer or Public Company owns control with the entities, along with
the percentage of share ownership, line of business, total asset, and
operating status of such companies (if any);
For subsidiaries, information on company address should be added;
15) Chronology of shares listing, number of shares, share value, and
offering price from the beginning of listing up to the end of the
financial year and name of Stock Exchange where Issuer or Public
Company’s shares are listed (if any);
16) Chronology of other securities listing other than the securities
reffered to in point 15) that contains the least securities’ name, year of
issuance, maturity date, offering value, and rating (if any);
17) Names and addresses of institutions and/or capital market
supporting professionals;
18) In the event that capital market supporting professionals provide
services periodically to the Issuer or Public Company, there should be
information on services provided, fees and period of assignment; and
19) Award and certification received by the Issuer or Public Company,
both national and international scale during the fiscal year (if any),
that includes:
a) Name of Award and/or certification;
b) Rewarding body or institution; and
c) Validity period of the award and/or certification (if any).
Annual Report must contain discussion and analysis of Financial Report
and other significant information by emphasizing material changes
taking place during the year under review. It should at least contain:
1) Operational review by business segment in accordance with the
industry of Issuer or Public Company, consisting of at least:
a) Production, which includes process, capacity and its development;
b) Revenue and
c) Profitability.
2) Comprehensive financial performance including a comparison
between the financial performance of the last two financial years,
explanation on the causes of such changes and their impact, which
among others includes:
a) Current assets, non-current assets, and total assets;
b) Short-term liabilities, long-term liabilities, and total liabilities;
c) Equity;
d) Revenue, expenses and profit (loss), other comprehensive revenue
and comprehensive income (loss); and
e) Cash flow;
3) Capability to pay debts by presenting relevant ratio;
4) Collectable accounts of Issuer or Public Company receivable by
presenting relevant ratio;
5) Capital structure and Management’s policies on the capital structure,
as well as basis of the policy making;
6) Discussion on material commitment for the investment of capital
goods with explanation concerning:
a) Purpose of such commitment;
b) Sources of funds expected to fulfill the said commitment;
c) Currency of denomination;
d) Steps taken by the Issuer or Public Company to protect the
position of related foreign currency against risks;
7) Discussion on capital goods investments realized within the last
financial year, that at least contains:
a) Type of capital goods investments;
b) Purpose of capital goods investments;
c) Value of capital goods investments issued.
8) Material information and facts occurring after the date of accountant’s
report (if any);
PAGES
94-98
98-99
100-101
102-103
102-103
54-60
107-120
122-139
140
140
141
144
142
146
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EXPLAINATION
9) Business prospects of Issuer or Public Company in relation to
the industry, economy in general, and international market, and
accompanied with the supporting quantitative data from reliable
data resource;
10) Comparison between target/projection at the beginning of financial
year and the realization, that includes::
a) Revenue;
b) Profit (loss);
c) Capital structure; or
d) Other information deemed necessary by the Issuer or Public
Company.
11) Target/projection of the Issuer or Public Company within 1 (one) year,
that includes:
a) Revenue;
b) Profit (loss);
c) Capital structure;
d) Devidend policy; or
e) Other information deemed necessary by the Issuer or Public
Company.
PAGES
151-152
153
154
12) Marketing aspects of the goods and/or services of Issuer or Public
Company, including among others marketing strategies and market
share;
156-157
13) Description of dividend during the past 2 (two) financial years (if
any), includes at least:
a) Dividend policy;
b) Date of cash dividend payment and/or date of non-cash dividend
distribution;
c) Amount of dividend per share (cash and/or non-cash); and
d) Amount of dividend paid per year.
14) Realization of the use of proceeds from Public Offering is under the
following conditions:
a) In the event that during the financial year reported, the Issuer is
obliged to submit Report on Realization of Use of Proceeds, then
Annual Report should disclose accumulated realization of use of
proceeds until the end of the financial year; and
b) In the event that there is a change in the use of proceeds as
stipulated in Financial Services Authority Regulation on Report on
Realization of Use of Proceeds, the Issuer should then explain such
change;
15) Material information (if any) concerning, among others investment,
expansion, divestment, merge, acquisition, debt/capital restructuring,
affiliated transaction, and transaction with conflict of interests, taking
place during the financial year (if any). Information includes:
a) Date, value and object of transaction;
b) Name of transacting parties;
c) Nature of affiliated relation (if any);
d) Explanation of fairness of transaction; and
e) Compliance with related rules and regulations.
154
155
155
16) Description of changes in regulation which have a significant effect
on the Issuer or Public Company and its impacts on the financial
report (if any); and
158-160
17) Changes in the accounting policy, rationale and impacts on the
financial statement (if any);
161
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS PAGES
201-211
174-181
182-190
CRITERIA
EXPLAINATION
g
Governance of Issuer or
Public Company
Governance of Issuer or Public Company at least contains brief
description of:
1) Directors, consisting of among others:
a) Scope of work and responsibility of each member of the Directors;
b) Disclosure that the Directors have charter of Directors;
c) Disclosure of procedures, basis of decision, and amount of
remuneration for members of Directors, along with the relation
between remuneration and the performance of Issuer or Public
Company;
d) Disclosure of company policies and the implementation on
frequency of Directors meetings, including joint meetings with the
Board of Commissioners and attendance of members of Directors
in such meetings;
e) Disclosure of resolutions of GMS of 1 (one) previous year and the
realization during the fiscal year, along with reasons in the event
that there is a resolution not yet realized:
(1) Resolutions of GMS realized in one financial year; and
(2) Reasons in the event that there is a resolution not yet realized.
f) Disclosure of resolutions of GMS during financial year, that includes:
(1) Resolutions of GMS realized in one financial year; and
(2) Reasons in the event that there is a resolution not yet realized;
and
g) Disclosure of company policies on performance assessment of
members of Directors;
2) Board of Commissioners, consisting of among others:
a) Description of responsibility of the Board of Commissioners;
b) Disclosure that the Board of Commissioners has charter of Board
of Commissioners;
c) Disclosure of procedures, basis of decision, and amount of
remuneration for members of Board of Commissioners;
d) Disclosure of company policies and the implementation on
frequency of Board of Commissioners meetings, including joint
meetings with the Directors, and attendance of members of Board
of Commissioners in such meetings;
e) Disclosure of Issuer or Public Company’s policies on performance
assessment of members of Directors and Board of Commissioners
and its implementation, including among others:
(1) Procedure of performance assessment implementation;
(2) Criteria of assessment; and
(3) Parties conducting the assessment.
f) Disclosure of performance assessment of committee supporting
the duties of Board of Commissioners; and
g) In the event that the Board of Commissioners did not establish
Committee of Nomination and Remuneration, the least information
to disclose includes:
(1) Reasons for not establishing a committee; and
(2) Procedure of nomination and remuneration implemented
during financial year.
3) Sharia Supervisory Board, for Issuer or Public Company running
business under the principles of sharia as expressed in the Articles of
-
Association, contains at least:
a) Name;
b) Tasks and responsibilities of Sharia Supervisory Board; and
c) Frequency and method of advising and supervisory on the
compliance of Sharia Principles in Capital Market toward the Issuer
or Public Company;
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS CRITERIA
EXPLAINATION
4) Audit Committee, consisting of among others:
a) Name and position in the committee;
b) Age;
c) Nationality;
d) Educational background;
e) Employment record, consisting of:
(1) Legal basis of appointment as member of committee;
(2) Double position, either as member of Board of Commissioners,
Directors, and/or committee and other positions (if any); and
(3) Work experience and the time period, both inside and outside
the Issuer or Public Company;
f) Period of service of Audit Committee members;
g) Disclosure of independence of Audit Committee;
h) Disclosure of company policies and the implementation on
frequency of Audit Committee meetings and the attendance of
Audit Committee members in such meetings;
i) Education and/or trainings participated within a financial year (if
any); and
j) Brief description activities carried out by Audit Committee during
the financial year based on what is stated in Audit Committee
Charter;
5) Other committees the Issuer or Public Company has in order
to support the function and tasks of Directors and/or Board of
Commissioners, such as Nomination and Remuneration Committee,
consisting of among others:
a) Name and position in the committee.;
b) Age;
c) Nationality;
d) Educational background;
e) Employment record, consisting of:
(1) Legas basis of appointment as committee member;
(2) Double position, either as member of Board of Commissioners,
Directors and/or committee and the other positions (if any); and
(3) Work experience and the time period both inside and outside
the Issuer or Public Company;
f) Period of service of committee members;
g) Description of the tasks and responsibilities;
h) Disclosure that the committee has charter of committee;
i) Disclosure of independence of committee members;
j) Disclosure of company policies and the implementation on
frequency of committee meetings and the attendance of committee
members in such meetings;
k) Education and/or trainings participated within a financial year (if
any); and
l) Brief description activities carried out by committee during the
financial year;
6) Corporate Secretary, consisting among others:
a) Name;
b) Domicile;
c) Employment record, consisting of:
(1) Legal basis of appointment as Corporate Secretary; and
(2) Work experience and the time period both inside and outside
the Issuer or Public Company;
d) Educational background;
e) Education and/or trainings participated within a financial year; and
f) Brief description activities carried out by Corporate Secretary
during the financial year.
PAGES
190-194
194-201
212-213
7) Internal Auditing Unit, consisting among others:
a) Name of Internal Auditing Unit’s chief;
b) Employment record, consisting of:
214-216
(1) Legal basis of appointment as Internal Auditing Unit’s chief; and
(2) Work experience and the time period both inside and outside
the Issuer or Public Company;
c) Qualification/certification as an Internal Audit (if any);
d) Education and/or trainings participated within a financial year;
e) Structure and position of Internal Auditing Unit;
f) Description of tasks and responsibilities of Internal Auditing Unit;
g) Disclosure that the the unit has charter Internal Auditing Unit; and
h) Brief description of tasks implementation of Internal Auditing Unit
during the fiscal year;
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS CRITERIA
EXPLAINATION
8) Description of internal control system implemented by Issuer or
Public Company, consisting of at least:
a) Operational and financial control, along with compliance with
other prevailing rules and regulations; and
b) Review on effectiveness of internal control system;
PAGES
216-217
9) Risk management system implemented by Issuer or Public Company,
consisting of at least:
a) General description of risk management system of Issuer or Public
217-224
Company;
b) Types of risks and efforts to manage such risks; and
c) Review on effectiveness of the risk management system of Issuer
or Public Company;
10) Material litigation faced by the Issuer or Public Company, subsidiaries,
present members of the Board of Commissioners and Directors (if
any), including among others:
a) Material of the case/claim;
b) Status of settlement of case/claim; and
c) Impacts on the financial condition of the Issuer or Public Company;
11) Information on administrative sanctions to Issuer or Public Company,
members of the Board of Commissioners and Directors, by capital
market authority and other authorities during the fiscal year (if any);
12) Information on code of conducts and culture of Issuer or Public
Company (if any) consisting of:
a) Main points of code of conducts;
b) Form of socialization of code of conducts and efforts to enforce
it; and
c) Disclosure of that code of conducts is applicable to member of
Directors, Board of Commissioners, and employers of Issuer or
Public Company;
13) Information on corporate culture or corporate values (if any);
14) Explanation on employees and/or Management share ownership
program carried out by Issuer or Public Company, including among
others amount, period of time, requirements for eligible employees
and/or Management, and exercise price (if any):
a) Amount of share and/or options;
b) Time period of exercise;
c) Requirements for eligible employees and/or Management; and
d) Exercise price;
15) Explanation on Whistleblowing System at the Issuer or Public
Company to report misconducts causing potential loss to the
company or the stakeholders (if any), consisting of among others:
a) Means of submitting the report on misconducts;
b) Protection for whistleblower;
c) Handling of whistleblowing;
d) Party managing whistleblowing; and
e) Results of whistleblowing handling, consisting of at least:
(1) Number of whistleblowing registered and processed in financial
year; and
(2) Follow up of whistleblowing;
226-227
227
234
228-233
234
224-226
16) Implementation of Public Company Governance Guidelines for
Issuer that issues Equity Securities or Public Company, consisting of:
166-172
a) Disclosure of implemented recommendations; and/or
b) Explanation concerning unimplemented recommendation,
including reasons for such conditions and alternatives (if any);
279
PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS CRITERIA
EXPLAINATION
h
Social and Environmental
Responsibility of Issuer or
Public Company
1) Information on Issuer or Public Company’s social and environmental
responsibility consisting of policies, types of programs, and cost, in
relation of the aspects of among others::
a) Environment, among others:
(1) Use of environmentally friendly and recyclable material and
energy;
(2) Issuer or Public Company’s waste management system;
(3) Mechanisms of complaints on environmental concern;
(4) Certification in the field of environment;
b)Labor practices, occupational health and safety, among others:
(1) Equality in gender and work opportunity;
(2) Work facility and safety;
(3) Employees turnover;
(4) Level of work accident;
(5) Eduation and/or training.
(6) Remuneration; and
(7) Mechanisms of complaints on Employment concern;
c) Social and community development, among others:
(1) Use of local work force;
(2) Empowerment of the Issuer or Public Company’s surrounding
community, among others by the use of raw materials produced
by the community or provision of education to the community;
(3) Improvement of social facilities and infrastructure;
(4) Other forms of donations; and
(5) Communication on anti currption policy and procedure in the
Issue or Public Company, as well as training on anti corruption
(if any).
d) Product and/or services responsibility, among others:
(1) Consumers’ health and safety;
(2) Product and/or services information; and
(3) Facilities for customers’ complaints, number of complaints and
complaints handling.
2) Issuer or Public Company may disclose information referred to
in point 1) as part of the Annual Report or in a separate report,
such as submitted at the same time as Sustainability Report or
Corporate Social Responsibility Report, and therefore the Issuer or
Public Company is excluded to disclose information on social and
environmental responsibility in the Anuual Report; and
3) The report reffered to in point 2) is submitted to Financial Services
Authority at the same time as the Annual Report submission.
The Financial Report contained in the Annual Report should be presented
in accordance with Financial Accounting Standard in Indonesia and
has been audited by Accountant. The said Financial Report should
contain statement regarding responsibility on the Financial Report in
compliance with Regulations in Capital Market sector on the Directors’
responsibility to the Financial Report or Regulations in Capital Market
sector on periodical report of Securities Companies in the event that
the Issuer is a Securities Company; dan
PAGES
238-249
and
SR
✓
✓
✓
42
Audited Financial Report
Statement of members
of Directors and Board
of Commissioners on the
Responsibility for the Annual
Report
Statement of members of Directors and Board of Commissioners on
the Responsibility for the Annual Report is composed in accordance
to the format of Statement of members of Directors and Board of
Commissioners on the Responsibility for the Annual Report as attached
in the Appendix as an inseparable part of the FSA Circulation Letter..
i
j
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS FEEDBACK FORM OF PT TELKOM INDONESIA (PERSERO) TBK
2016 ANNUAL REPORT
Thank you for reading our 2016 Annual Report. To improve the quality of future Annual Report, we would like to ask you to
provide us with feedback by completing the following form:
Questions.
1. In your opinion , this Annual Report provides information on various activities implemented by PT Telkom Indonesia
(Persero) Tbk.
SA
A
M
D
2. In your opinion , the material in this Annual Report includes data and information are easily understood.
SA
A
M
D
SD
SD
3. In your opinion , the material in this Annual Report includes data and information are sufficiently complete
SA
A
M
D
SD
4. In your opinion, the material in this Annual Report includes data and information are accountable and can be validated
for decision making process
SA
A
M
D
SD
Notes:
SA: Strongly Agree A: Agree M: Moderate D: Disagree SD: Strongly Disagree
5. In your opinion, what information do you feel was useful in this Annual Report??
a. …………………………………………………………………………………………………………………...........……………………………………………………
b. ………………………………………………………………………………………………………………………………………………………...........………………
c. ……………………………………………………………………………………………………………………………………………………...........…………………
6. In your opinion, what information do you feel was not useful in this Annual Report?
a. ……………………………………………………………………………………………………………………
b. ……………………………………………………………………………………………………………………
c. ……………………………………………………………………………………………………………………
7. In your opinion, the information in this Annual Report is well presented, well designed and laid out with suitable
photographs?
a. ……………………………………………………………………………………………………………
b. ……………………………………………………………………………………………………………
c. ……………………………………………………………………………………………………………
8. In your opinion, what information was missing or incomplete and should be included in future Annual Report?
a. ………………………………………………………………………………………………………………………
b. ………………………………………………………………………………………………………………………
c. ………………………………………………………………………………………………………………………
Your Profile
Full Name
Age and Gender
Institution/Company
: ………………………………………………………………………
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Type of Institution/Company :
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Please send back this form to: :
PT Telekomunikasi Indonesia, Tbk.
Investor Relations
Grha Merah Putih 5th Floor
Jl. Jend. Gatot Subroto Kav. 52
Jakarta 12710, Indonesia
T +62 21 521 5109
F +62 21 522 0500
email : investor@telkom.co.id
www: telkom.co.id
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PT Telkom Indonesia (Persero) Tbk TELKOM GROUPFINANCIAL AND OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED
FINANCIAL
STATEMENT
2016 Audited Consolidated Financial Statement
2016 Audited PKBL Financial Statement
PERUSAHAAN PESEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2016 AND FOR THE YEAR THEN ENDED
WITH INDEPENDENT AUDITOR’S REPORT
TABLE OF CONTENTS
Independent Auditor’s Report
Consolidated Statement of Financial Position
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Page
1
2
3-4
5
6-120
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of December 31, 2016
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
Notes
2016
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 for tax refund
Prepaid taxes
Assets held for sale
2c,2e,2u,3,31,37
2c,2e,2u,4,31,37
2g,2u,2ab,5,37
2c,31
2g,2u,37
2h,6
2c,2i,2m,7,31
2t,26
2t,26
2j,9
29,767
1,471
894
6,469
537
584
5,246
592
2,138
3
28,117
2,818
1,104
6,413
355
528
5,839
66
2,672
-
Total Current Assets
47,701
47,912
NON-CURRENT ASSETS
Long-term investments
Property and equipment - net of accumulated depreciation
Prepaid pension benefit cost
Advances and other non-current assets
Intangible assets - net of accumulated amortization
Deferred tax assets - net
2f,8
2l,2m,2aa,9,34
2s,29
2c,2g,2i,2n,2u,10,31,37
2d,2k,2n,2aa,11
2t,26
Total Non-current Assets
TOTAL ASSETS
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 borrowings
Total Current Liabilities
2o,2u,12,37
2c,31
2u,37
2t,26
2c,2u,13,31,37
2r,14
2c,31
2c,2m,2p,2u,15a,31,37
2c,2m,2p,2u,15b,31,37
NON-CURRENT LIABILITIES
Deferred tax liabilities - net
Unearned income
Other liabilities
Long service award provisions
Pension benefits and other post-employment benefits obligations
Long-term borrowings - net of current maturities
2t,26
2r,14
2s,30
2s,29
2c,2m,2p,2u,16,31,37
Total Non-current Liabilities
TOTAL LIABILITIES
EQUITY
Capital stock
Additional paid-in capital
Treasury stock
Other equity
Retained earnings
Appropriated
Unappropriated
Net equity attributable to:
Owners of the Parent Company
Non-controlling interests
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
1c,18
2v,19
2v,20
2f,2u,21
28
2b,17
1,847
114,498
199
11,508
3,089
769
131,910
179,611
1,547
11,971
172
2,954
11,283
5,563
840
911
4,521
39,762
745
425
29
613
6,126
26,367
34,305
74,067
5,040
4,931
(2,541 )
339
15,337
61,278
84,384
21,160
105,544
179,611
1,807
103,700
1,331
8,166
3,056
201
118,261
166,173
2,075
11,919
290
3,273
8,247
4,360
805
602
3,842
35,413
2,110
371
11
501
4,171
30,168
37,332
72,745
5,040
2,935
(3,804 )
508
15,337
55,120
75,136
18,292
93,428
166,173
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements
taken as a whole.
1
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, 2016
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
REVENUES
Operation, 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 profit (loss) of associated companies
PROFIT BEFORE INCOME TAX
INCOME TAX (EXPENSE) BENEFIT
Current
Deferred
PROFIT FOR THE YEAR
Notes
2c,2r,22,31
2c,2r,24,31
2k,2l,2m,9,11
2c,2r,2s,23,31
2c,2r,31
2c,2r,25,31
2r
2q
2l,2r,9c
2r,9c
2c,31
2c,2p,2r,31
2f,8
2t,26
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 (loss) gain – net of tax
Other comprehensive income - net
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 (100 Series B shares per ADS)
2f,2q,21
2u,21
2f,8
2s,29
2b,17
2b,17
2x,27
2016
2015
116,333
102,470
(31,263 )
(18,532 )
(13,612 )
(3,218 )
(4,610 )
(4,132 )
(52 )
750
(2,469 )
39,195
1,716
(2,810 )
88
38,189
(10,738 )
1,721
(9,017 )
29,172
(40 )
0
(1 )
(2,058 )
(2,099 )
27,073
19,352
9,820
29,172
17,331
9,742
27,073
(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
(8,365 )
340
(8,025 )
23,317
128
(1 )
(2 )
506
631
23,948
15,489
7,828
23,317
16,130
7,818
23,948
196.19
19,619.11
157.77
15,777.00
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 CHANGES IN EQUITY
For the Year Ended December 31, 2016
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
Attributable to owners of the parent company
Retained earnings
Descriptions
Balance, January 1, 2016
Capital contribution
Acquisition of a business
Acquisition of non-controlling interest
Cash dividends
Sale of treasury stock
Profit for the year
Other comprehensive income
Balance, December 31, 2016
Notes
Capital stock
Additional paid-
in capital
1d
2w,28
20
2b,17
2f,2q,2s,2u,17
5,040
-
-
-
-
-
-
-
5,040
2,935
-
-
-
-
1,996
-
-
4,931
Treasury stock
(3,804 )
-
-
-
-
1,263
-
-
(2,541 )
Other equity
Appropriated
508
-
-
(129 )
-
-
-
(40 )
339
Unappropriated
55,120
-
-
-
(11,213 )
-
19,352
(1,981 )
61,278
15,337
-
-
-
-
-
-
-
15,337
Net
Non-controlling
interests
Total equity
75,136
-
-
(129 )
(11,213 )
3,259
19,352
(2,021 )
84,384
18,292
183
10
(9 )
(7,058 )
-
9,820
(78 )
21,160
93,428
183
10
(138 )
(18,271 )
3,259
29,172
(2,099 )
105,544
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 CHANGES IN EQUITY (continued)
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
Retained earnings
Descriptions
Balance, January 1, 2015
Capital contribution
Cash dividends
Sale of treasury stock
Profit for the year
Other comprehensive income
Balance, December 31, 2015
Notes
Capital stock
Additional paid-
in capital
2w, 28
20
2b,17
2f,2q,2s,2u,17
5,040
-
-
-
-
-
5,040
2,899
-
-
36
-
-
2,935
Treasury stock
(3,836 )
-
-
32
-
-
(3,804 )
Other equity
Appropriated
381
-
-
-
-
127
508
Unappropriated
47,900
-
(8,783 )
-
15,489
514
55,120
15,337
-
-
-
-
-
15,337
Net
Non-controlling
interests
Total equity
67,721
-
(8,783 )
68
15,489
641
75,136
18,271
34
(7,831 )
-
7,828
(10 )
18,292
85,992
34
(16,614 )
68
23,317
631
93,428
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 CASH FLOW
For the Year Ended December 31, 2016
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
Notes
2016
2015
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from:
Customers
Other operators
Total cash receipts from customers and other operators
Interest income received
Cash payments for expenses
Payments for corporate and final income taxes
Cash payments to employees
Payments for interest costs
Payments for value added taxes - net
Other cash receipts - net
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Redemption of time deposits and available-for-sale financial
assets
Proceeds from sale of property and equipment
Proceeds from insurance claims
Dividends received from associated company
Purchase of property and equipment
(Increase) decrease in advances for purchases of property and
equipment
Purchase of intangible assets
Placement in time deposits and available-for-sale financial
assets
Acquisition of non-controlling interests in subsidiaries
Business acquisition - net of acquired cash
Additional contribution on long-term investments
(Increase) decrease in other assets
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank loans and other borrowings
Proceeds from sale of treasury stock
Capital contribution of non-controlling interests in subsidiaries
Cash dividends paid to the Company’s stockholders
Repayments of bank loans and other borrowings
Cash dividends paid to non-controlling interests of subsidiaries
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 YEAR
9
9
8
9,39
11,39
1d
1d
8
15,16
20
28
15,16
3
3
113,288
2,828
116,116
1,736
(42,433 )
(11,304 )
(11,207 )
(3,455 )
(2,696 )
474
47,231
2,159
765
60
23
(26,787 )
(1,338 )
(1,098 )
(983 )
(138 )
(137 )
(43 )
(40 )
98,002
2,700
100,702
1,386
(35,922 )
(9,299 )
(10,940 )
(2,623 )
(210 )
575
43,669
-
733
119
18
(26,499 )
(67 )
(1,439 )
(146 )
-
(114 )
(62 )
36
(27,557 )
(27,421 )
7,479
3,259
183
(11,213 )
(10,555 )
(7,058 )
(17,905 )
1,769
(119 )
28,117
29,767
20,561
68
5
(8,783 )
(10,427 )
(7,831 )
(6,407 )
9,841
604
17,672
28,117
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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2016 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 18).
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
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.
Indonesia (“MoLHR”)
the Republic of
in
In accordance with Article 3 of the Company’s Articles of Association, the scope of its activities is to
provide telecommunication network and telecommunication and information services, and to
optimize the Company’s resources in accordance with prevailing regulations. In regard to achieve
objective, the Company is involved in the following activities:
a. Main business:
i. Planning, building, providing, developing, operating, marketing or selling or 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,
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 achieve the purposes and objectives of
the Company.
The Company’s head office is located at Jalan Japati No. 1, Bandung, West Java.
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, 2016 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 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 issued by the Ministry of
Communication and Information (“MoCI”), 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 of electronic money
issuer
License of money remittance
License to operate internet
service provider
License to operate network
access point
License to operate internet
telephone services for
public purpose
License to operate fixed
domestic long distance
network
License No.
Bank Indonesia License
No. 11/432/DASP
Bank Indonesia License
No. 11/23/bd/8
302/KEP/DJPPI/
KOMINFO/8/2013
331/KEP/DJPPI/
KOMINFO/09/2013
127/KEP/DJPPI/
KOMINFO/3/2016
839/KEP/
M.KOMINFO/05/2016
License to operate fixed
international network
846/KEP/
M.KOMINFO/05/2016
Type of services
Electronic money
Grant date/latest
renewal date
July 3, 2009
Money remittance
August 5, 2009
service
Internet service
provider
August 2, 2013
Network Access Point September 24, 2013
Internet telephone
services for public
purpose
Fixed domestic long
distance and basic
telephone services
network
Fixed international and
basic telephone
services network
March 30, 2016
May 16, 2016
May 16, 2016
License to operate fixed
closed network
844/KEP/
M.KOMINFO/05/2016
Fixed closed network
May 16, 2016
License to operate circuit
switched based local fixed
line network
License to operate data
communication system
services
948/KEP/
M.KOMINFO/05/2016
Circuit Switched based
local fixed line network
May 31, 2016
191/KEP/DJPPI/
KOMINFO/10/2016
Data communication
October 31, 2016
system services
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, 2016 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. 50 of Ashoya Ratam, S.H., MKn., dated
April 22, 2016, and AGM of Stockholders of the Company as covered by notarial deed
No. 26 of Ashoya Ratam, S.H., MKn., dated April 17, 2015, the composition of the Company’s
Boards of Commissioners and Directors as of December 31, 2016 and 2015, respectively, was
as follows:
President Commissioner
Commissioner
Commissioner
Commissioner
Independent Commissioner
Independent Commissioner
Independent Commissioner
President Director
Director of Finance
Director of Digital and Strategic
2016
2015
Hendri Saparini
Dolfie Othniel Fredric Palit
Hadiyanto
Pontas Tambunan
Rinaldi Firmansyah
Margiyono Darsasumarja
Pamiyati Pamela Johanna
Alex Janangkih Sinaga
Harry Mozarta Zen
Hendri Saparini
Dolfie Othniel Fredric Palit
Hadiyanto
Margiyono Darsasumarja
Rinaldi Firmansyah
Parikesit Suprapto
Pamiyati Pamela Johanna
Alex Janangkih Sinaga
Heri Sunaryadi
Portfolio
Indra Utoyo
Indra Utoyo
Director of Enterprise and
Business Service*
Director of Wholesale and
International Services
Director of Human Capital
-
Muhammad Awaluddin
Honesti Basyir
Honesti Basyir
Management
Herdy Rosadi Harman
Herdy Rosadi Harman
Director of Network, Information
Technology and Solution
Abdus Somad Arief
Director of Consumer Service Dian Rachmawan
Abdus Somad Arief
Dian Rachmawan
*On September 9, 2016, Muhammad Awaluddin was appointed as Director of PT Angkasa Pura II. Based on Board of Directors’ decision
No. 33/REG/IX/2016 dated September 13, 2016, Honesti Basyir as Director of Wholesale and International Service was appointed to
act as Director of Enterprise and Business Service.
2. Audit Committee and Corporate Secretary
The composition of the Company’s Audit Committee and the Corporate Secretary as of
December 31, 2016 and 2015, were as follows:
Chairman
Secretary
Member
Member
Member
Member
Corporate Secretary
2016*
Rinaldi Firmansyah
Tjatur Purwadi
Margiyono Darsasumarja
Dolfie Othniel Fredric Palit
Sarimin Mietra Sardi
Pontas Tambunan
Andi Setiawan
2015
Rinaldi Firmansyah
Tjatur Purwadi
Parikesit Suprapto
Dolfie Othniel Fredric Palit
-
-
Andi Setiawan
*The changes of Audit Committee are based on Board of Commissioners’ decision No. 09/KEP/DK/2016 dated July 27, 2016.
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, 2016 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 (continued)
3. Employees
As of December 31, 2016 and 2015, the Company and subsidiaries (“Group”) had 23,876
employees and 24,785 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 AGMs 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 20).
9
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, 2016 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 20).
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 20).
At the AGM held on April 19, 2013, the minutes of which were 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. The issued capital stock increase 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. Effective from October 26, 2016,
the Company conducted a ratio change of Depository Receipt from 1 ADS represents 200 series B
shares become 1 ADS represents 100 series B shares (Note 18).
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, 2016, all of the Company’s Series B shares are listed on the IDX and
70,005,900 ADS shares are listed on the NYSE (Note 18).
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 16b.i).
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 which are listed on the IDX (Note 16b.i).
On December 21, 2015, the Company has sold the remaining shares of treasury stock phase III
(Note 20).
On June 29, 2016, the Company has sold the shares of treasury stock phase IV (Note 20).
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries
As of December 31, 2016 and 2015, the Company has consolidated the following directly or
indirectly owned subsidiaries (Notes 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
Telecommunication - provides
telecommunication facilities
and mobile cellular services
using Global Systems for
Mobile Communication (“GSM”)
technology /
May 26, 1995
PT Dayamitra Telekomunikasi
(“Dayamitra”),
Jakarta, Indonesia
Telecommunication/
May 17, 2001
PT Multimedia Nusantara
(“Metra”),
Jakarta, Indonesia
Network telecommunication
services and multimedia/
May 9, 2003
PT Telekomunikasi Indonesia
International (“TII”),
Jakarta, Indonesia
Telecommunication/
July 31, 2003
PT Telkom Akses
(“Telkom Akses”),
Jakarta, Indonesia
PT Graha Sarana Duta
(“GSD”),
Jakarta, Indonesia
PT PINS Indonesia
(“PINS”)
Jakarta, Indonesia
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
Year of start of
commercial
operations
1995
Percentage of
ownership interest
2016
2015
Total assets before
elimination
2016
2015
65
65 89,781
84,086
1995
100
100 10,689
9,341
1998
100
100 10,020
8,563
1995
100
100
7,147
5,604
2013
100
100
5,098
3,696
1982
99,99
99,99
4,333
3,581
Telecommunication construction
1995
100
100
3,146
2,960
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
2014
100
100
1,015
647
PT Patra Telekomunikasi
Telecomunication - provides
1996
100
100
472
472
Indonesia
(“Patrakom”),
Jakarta, Indonesia
satellite communication
system, services and facilities/
September 28, 1995
PT Metranet (“Metranet”),
Jakarta, Indonesia
Multimedia portal service/
April 17, 2009
2009
100
99.99
370
66
PT Jalin Pembayaran
Nusantara (“Jalin”),
Jakarta, Indonesia
Payment services – principal,
switching, clearing and
settlement activities/
November 3, 2016
PT Napsindo Primatel
Telecommunication - provides
Internasional
(“Napsindo”),
Jakarta, Indonesia
Network Access Point (NAP),
Voice Over Data (VOD) and
other related services/
December 29, 1998
2016
100
-
15
-
1999; ceased
operations on
January 13,
2006
60
60
5
5
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, 2016 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)
Indirect subsidiaries:
Subsidiary/place of
incorporation
PT Sigma Cipta Caraka
(“Sigma”),
Tangerang, Indonesia
Telekomunikasi Indonesia
International Pte. Ltd.,
Singapore
PT Infomedia Nusantara
(“Infomedia”),
Jakarta, Indonesia
Nature of business/date of
incorporation or acquisition
by the Company
Information technology service -
Year of start of
commercial
operations
1988
Percentage of
ownership interest
2016
2015
Total assets before
elimination
2016
2015
100
100
4,289
3,587
system implementation and
integration service,
outsourcing and software
license maintenance/
May 1,1987
Telecommunication/
December 6, 2007
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
2008
100
100
2,566
1,618
1984
100
100
1,860
1,622
PT Telkom Landmark Tower
(“TLT”),
Jakarta, Indonesia
Telekomunikasi Indonesia
International (“TL”) S.A.,
Timor Leste
Service for property
development and
management/
February 1, 2012
Telecommunication/
September 11, 2012
2012
55
55
1,683
1,245
2012
100
100
755
854
PT Metra Digital Media
Directory information services/
2013
99,99
99,99
684
618
(“MD Media”),
Jakarta, Indonesia
January 22, 2013
PT Finnet Indonesia (“Finnet”),
Information technology services/
2006
60
60
629
513
Jakarta, Indonesia
October 31, 2005
Telekomunikasi Indonesia
Telecommunication/
2010
100
100
441
326
International Ltd.,
Hong Kong
PT Metra Digital Investama
(“MDI”),
Jakarta, Indonesia
PT Metra Plasa
(“Metra Plasa”),
Jakarta, Indonesia
December 8, 2010
Trading and/or providing service
related to information and
tehnology multimedia,
entertainment and
investment/
January 8, 2013
Network & e-commerce
services/ April 9, 2012
2013
99.99
99.99
331
4
2012
60
60
325
85
PT Nusantara Sukses Investasi
Service and trading/
2014
99,99
99,99
227
165
(”NSI”),
Jakarta, Indonesia
September 1, 2014
PT Administrasi Medika
Health insurance administration
2002
100
75
204
160
(“Ad Medika”),
Jakarta, Indonesia
PT Melon (“Melon”),
Jakarta, Indonesia
PT Graha Yasa Selaras
(“GYS”),
Jakarta, Indonesia
Telekomunikasi Indonesia
Internasional Pty Ltd.
(“Telkom Australia”),
Australia
services/
February 25, 2010
Content provider/
November 14, 2016
Tourism service/
April 27, 2012
Telecommunication/
January 9, 2013
2010
2012
100
51
178
-
51
51
174
160
2013
100
100
161
171
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, 2016 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
PT Sarana Usaha
Sejahtera Insanpalapa
(”TelkoMedika”),
Jakarta, Indonesia
Nature of business/date of
incorporation or acquisition
by the Company
Health services, medicine
services including
pharmacies, laboratories and
other health care support/
November 30, 2015
Year of start of
commercial
operations
2008
Percentage of
ownership interest
2016
2015
Total assets before
elimination
2016
2015
75
75
72
49
PT Satelit Multimedia Indonesia
(“SMI”),
Jakarta, Indonesia
Satellite services/
March 25, 2013
2013
99.99
99.99
18
13
Telekomunikasi Indonesia
Telecommunication/
2014
100
100
9
52
International
(“Telkom USA”), Inc.,
USA
December 11, 2013
PT Nusantara Sukses Sarana
(“NSS”),
Jakarta, Indonesia
Building and hotel management
service and other services/
September 1, 2014
PT Nusantara Sukses Realti
Service and trading/
-
-
99.99
99.99
99.99
99,99
(”NSR”),
Jakarta, Indonesia
PT Metra TV
(“Metra TV”),
Jakarta, Indonesia
September 1, 2014
Subscription-broadcasting
services/
January 8, 2013
a) Metra
2013
99.83
99,83
-
-
-
-
-
-
On November 30, 2015 Metra acquired 13,850 shares of TelkoMedika (equivalent to 75%
ownership) with acquisition cost amounting to Rp69.5 billion. TelkoMedika engaged in health
procurement and medicinal services including the establishment of pharmacies, hospital, clinic,
or other healthcare support.
Based on notarial deed of Utiek Rochmuljati Abdurachman, S.H., M.LI, M.Kn., No. 10, 11, 12,
13, 14 dated May 25, 2016, Metra purchased 2,000 shares of Ad Medika from the non-
controlling interest equivalent to 25% ownership amounting to Rp138 billion.
b) Sigma
Based on notarial deed of Utiek Rochmuljati Abdurachman, S.H., M.LI, M.Kn., No. 09 dated
December 18, 2015, which was approved by MoLHR through its decision letter No. AHU-
AH.01.03-09904427 dated December 22, 2015, Sigma purchased 55% ownership in PT Media
Nusantara Global Data ("MNDG") which is engaged in data center services. The acquisition
cost amounted to Rp45 billion and the fair value of identifiable net assets amounted to Rp30
billion resulting in a goodwill of Rp15 billion (Note 11).
Based on notarial deed of Utiek Rochmuljati Abdurachman, S.H., M.LI, M.Kn., No. 15 dated
June 29, 2016, Sigma purchased 13,770 shares of PT Pojok Celebes Mandiri (“PCM”)
(equivalent to 51% ownership) from Metra amounting to Rp7.8 billion.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
c) TII
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. On May 30, 2016, the agreement related to
the merger was terminated.
d) Jalin
On November 3, 2016, the Company established a wholly-owned subsidiary under the name
PT Jalin Pembayaran Nusantara (“Jalin”) which was approved by the MoLHR through its
Decision Letter No. AHU-0050800.AH.01.01 dated November 15, 2016. Jalin is engaged in
organizing ICT (Information, Communication & Telecommunication) business focuses on non
cash payment to support national payment gateway.
e) Metranet
On November 10, 2016, Metranet increased its share capital from Rp244 billion to Rp325 billion
by issuing 18,800,000 new shares which were wholly-owned by the Company.
Based on notarial deed of Utiek Rochmuljati Abdurachman, S.H., M.LI, M.Kn., No. 08 and 09
dated November 14, 2016, Metranet purchased 4,900,000 shares of Melon (equivalent to 49%
ownership) from SK Planet Co. and 300,000 shares of Melon (equivalent to 3% ownership)
from Metra amounting to US$13,000,000 or Rp170.4 billion and Rp13.2 billion, respectively.
As a result of this transaction, Metranet acquired 52% ownership in Melon and the remaining
shares are held by Metra.
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 March 2, 2017.
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, 2016 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”) have been prepared in accordance with Financial Accounting Standards ("Standar Akuntansi
Keuangan” or “SAK") including Indonesian Statement of 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 the Financial
Accounting Standards Board of Indonesian Institute of Accountant and Regulation No. VIII.G.7 of the
Capital Market and Financial Institution Supervisory Agency (“Bapepam-LK”) regarding the
Presentation and Disclosure 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.
Accounting Standards Issued but not yet Effective
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.
PSAK 3 (Adjustment 2016): Interim Financial Reporting.
The PSAK provides clarification that the interim financial report is incomplete if the interim
financial statements and any disclosure incorporated by cross-reference are not made
available to users of the interim financial statements on the same terms and at the same time.
If the users of the interim financial statements can not access information in cross-reference
with the requirement and the same time, the interim financial statements are considered
incomplete.
PSAK 24 (Adjustment 2016): Employee Benefits.
The PSAK provides clarification that high-quality corporate bonds should be assessed at the
currency level and not at the country level.
PSAK 58 (Adjustment 2016): Non-current Assets Held for Sale and Discontinued Operations.
The PSAK provides clarification that changes in the method of disposal of an asset or disposal
group are considered a continuation of the original plan of disposal. It also clarify that the
changes in the method of disposal does not change the date of classification as asset or
disposal group.
PSAK 60 (Adjustment 2016): Financial Instruments: Disclosures.
The PSAK provides clarification that the entity must assess the nature of servicing
arrangements as provided in paragraph PP30 and paragraphs 42C to determine whether the
entity has a continuing involvement in financial assets and whether the disclosure requirements
related to continuing involvement are met.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Basis of preparation of financial statements (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.
Effective January 1, 2018:
Amendments to PSAK 2: Statement of Cash Flows on Disclosure Initiative.
These amendments require the entity to provide disclosures that enable users of financial
statements to evaluate changes in liabilities arising from financing activities, including both
changes arising from cash flows and non-cash changes.
Amendments to PSAK 46: Income Taxes on Recognition of Deferred Tax Assets for Unrealised
Losses.
These amendments:
- Add illustrative examples to clarify that the deductible temporary differences arise when the
carrying amount of debt instruments measured at fair value and the fair value is less than the
taxable base, regardless of whether the entity expects to recover the carrying amount of a
debt instrument by sale or by use, for example by holding it and collecting contractual cash
flows, or a combination of both.
- Clarify that in order to assess whether taxable profits will be available against which it can
utilise a deductible temporary difference, the assessment of that deductible temporary
difference carried out in accordance with tax law.
- Clarify that tax reduction from the reversal of deferred tax assets is excluded from the
estimation of future taxable profit. The entity compares the deductible temporary differences
with future taxable profit that excludes tax deductions resulting from the reversal of those
deductible temporary differences to assess whether the entity has sufficient future taxable
profit.
- The estimate of probable future taxable profit may include the recovery of some of an entity’s
assets for more than their carrying amount if there is sufficient evidence that it is probable
that the entity will achieve this.
The following new or amended standards, that will be effective on January 1, 2018, are considered
to be not applicable to the Group’s consolidated financial statements:
PSAK 69: Agriculture.
Amendments to PSAK 16: Agriculture: Bearer Plants.
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.
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, 2016 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)
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.
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 the 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.
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, 2016 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 for the Company or individual entity in the same group.
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.
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.
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, 2016 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)
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.
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.
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, 2016 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)
h.
Inventories
Inventories consist of components, which are subsequently expensed 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, which are expensed upon sale.
The costs of inventories consist 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
inventory 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.
k.
Intangible assets
Intangible assets mainly consist of software. 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.
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, 2016 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 (continued)
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 statements 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
Satelite, earth station and equipment
Cable network
Power supply
Data processing equipment
Other telecommunication peripherals
Office equipment
Vehicles
Customer Premises Equipment (“CPE”) asset
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.
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.
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, 2016 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)
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 statements 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 statements of profit or loss and
other comprehensive income as incurred. Significant renewals and betterments are capitalized.
Property under construction is stated at cost until the 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 statements 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.
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 terms, 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.
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, 2016 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)
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 using the straight-line method 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 the
payment is due within one year or less. 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 statements 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.
q. Foreign currency translations
Indonesia
International Pte. Ltd., Singapore, 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 Inc., USA and 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 are 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 statements of financial position dates, 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 statements of financial
position dates, as follows (in full amount):
U.S. dollar (“US$”) 1
Australian dollar (“AU$”) 1
Euro 1
Yen 1
2016
2015
Buy
Sell
Buy
Sell
13,470
9,721
14,170
115.01
13,475
9,726
14,181
115.10
13,780
10,076
15,049
114.47
13,790
10,092
15,064
114.56
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, 2016 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 (continued)
The resulting foreign exchange gains or losses, realized and unrealized, are credited or charged to
the consolidated statements 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.
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.
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, 2016 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)
vi. Other revenues
Revenues from sales of handsets or other telecommunications equipments are recognized
when delivered to customers.
Revenues from telecommunication tower leases are recognized on straight-line basis over the
lease period in accordance with the agreement with the customers.
Revenues from other services are recognized when services are rendered to customers.
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 agent 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.
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, 2016 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)
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.
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 are 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 reclassified 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.
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, 2016 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)
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.
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 income 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 statements 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 taxation 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.
Indonesian tax regulation set up several type that subject to final tax. Final tax which charged to
gross value of transaction remains subject to the transaction even though the subject are losses.
Refer to PSAK No. 46 revised, final tax is not required in scope of PSAK No. 46.
Final income tax on construction services and lease is presented as part of “Other Expenses”.
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, 2016 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
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 investment 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.
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 commits 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
statements 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 statements 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 assets, 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, 2016 and 2015.
investments as of
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, 2016 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
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 primaly consist of mutual funds, and corporate and government
bonds, which are recorded as part of “Other Current Financial Assets” in the consolidated
statements of financial position.
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 statements 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 and
interest-bearing loans and other borrowings, and other liabilities. Interest-bearing 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, 2016 and
2015.
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, and interest-bearing loans
and other borrowings, and other liabilities. Interest-bearing 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.
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, 2016 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)
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.
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 37.
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.
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, 2016 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)
v.
Impairment of financial assets (continued)
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 has expired.
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 grant 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 and diluted 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 the basic earnings per share by 100, 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.
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, 2016 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)
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
At the end of each reporting period, the Group assesses 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. 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.
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 as part of “Depreciation
and Amortization” in the consolidated statements of profit or loss and other comprehensive income.
At the end of each reporting period, the Group assesses 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. 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.
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, 2016 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. 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 29 and 30.
ii. Useful lives of property and equipment
The Group estimates the useful lives of its 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 reviews its estimates of useful lives at least each financial year-end and such
estimates are updated if expectations differ from previous estimates due to changes in
ecpectation of 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 amounts of property and equipment are disclosed in Note 9.
iii. Provision for impairment of receivables
The Group assesses whether there is objective evidence that trade and other 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 amounts of provision for impairment
of receivables are disclosed in Note 5.
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 26.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS
The breakdown of cash and cash equivalents is as follows:
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
The Hongkong and Shanghai Banking
Corporation Ltd. (“HSBC”)
Standard Chartered Bank (“SCB”)
PT Bank Permata Tbk (“Bank Permata”)
Development Bank of Singapore (”DBS”)
PT Bank Muamalat Indonesia Tbk
(“Bank Muamalat”)
Citibank, N.A. (“Citibank”)
Others (each below Rp75 billion)
Sub-total
Total cash in banks
Time deposits
Related parties
BRI
BNI
PT Bank Tabungan Negara (Persero) Tbk
(“Bank BTN”)
Bank Mandiri
Sub-total
2016
Balance
2015
Balance
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
-
10
-
10
Currency
Rp
-
41
6
1
1
0
-
6
5
0
-
8
-
0
13
2
-
-
6
5
-
7
-
0
-
2
-
1
0
-
2
0
0
1
3
0
0
0
-
47
-
25
-
-
5
1,897
548
1
11
1
0
581
84
68
0
95
107
22
0
3,415
176
4
-
0
74
43
14
96
101
0
6
24
5
12
1
146
33
0
0
12
1
0
0
1
749
4,164
4,076
632
4,043
336
3,356
1,552
67
14,062
-
51
11
1
1
0
-
22
5
0
-
11
-
0
8
10
1
-
31
1
-
0
-
-
-
27
-
2
0
-
1
-
0
1
19
0
0
0
672
707
1
8
1
0
508
299
72
0
140
155
14
0
2,577
110
18
6
0
430
13
12
0
0
-
61
373
103
26
4
86
15
-
0
13
8
0
0
0
1,278
3,855
-
201
-
1
-
-
5
2,831
2,763
3,031
9
885
2,863
69
12,451
Rp
US$
JPY
EUR
HKD
AUD
Rp
US$
EUR
SGD
Rp
US$
Rp
US$
US$
HKD
SGD
Rp
US$
SGD
Rp
US$
Rp
US$
Rp
US$
Rp
US$
EUR
Rp
US$
SGD
EUR
AUD
TWD
MYR
HKD
MOP
Rp
US$
Rp
US$
Rp
Rp
US$
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS (continued)
2016
Balance
2015
Balance
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
Currency
Time deposits (continued)
Third parties
PT Bank CIMB Niaga Tbk
(“Bank CIMB Niaga”)
PT Bank Pembangunan Daerah Jawa Barat
dan Banten Tbk (“BJB”)
PT Bank OCBC NISP Tbk (“OCBC NISP”)
Bank Permata
PT Bank Mega Tbk (“Bank Mega”)
PT Bank UOB Indonesia (“UOB”)
PT Bank Tabungan Pensiunan Nasional Tbk
(“BTPN”)
SCB
Bank Muamalat
Bank ANZ (“Bank ANZ”)
PT Bank Bukopin Tbk (“Bank Bukopin”)
PT Bank Pan Indonesia Tbk (”Bank Panin”)
Others (each below Rp75 billion)
Sub-total
Total time deposits
Grand Total
Rp
Rp
US$
Rp
US$
Rp
Rp
US$
Rp
Rp
Rp
US$
SGD
Rp
Rp
Rp
US$
Rp
Rp
-
-
-
-
10
-
-
14
-
-
-
18
15
-
-
-
-
-
-
2,025
2,020
-
1,550
134
1,492
1,226
185
1,345
461
-
242
139
305
200
148
-
-
59
11,531
25,593
29,767
-
-
10
-
-
-
-
70
-
-
-
-
-
-
-
-
55
-
-
1,605
1,884
138
950
-
1,692
1,265
960
300
146
550
-
-
142
-
1,173
759
91
146
11,801
24,252
28,117
Interest rates per annum on time deposits are as follows:
Rupiah
Foreign currencies
2016
3.20%-10.00%
0.10%-2.00%
2015
3.75%-10.50%
0.10%-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 31 for details of related party transactions.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
4. OTHER CURRENT FINANCIAL ASSETS
The breakdown of other current financial assets is as follows:
2016
Balance
2015
Balance
Currency
Original currency
(in millions)
Rupiah
equivalent
Original currency
(in millions)
Rupiah
equivalent
Time deposits
Related parties
BNI
Bank Mandiri
Third parties
UOB
SCB
Total time deposits
Available-for-sale financial assets
Related parties
PT Bahana TCW Investment
Mangement (”Bahana TCW”)
PT Mandiri Manajemen Investasi
State-owned enterprises
Government
Sub-total
Third parties
Total available-for-sale financial assets
Escrow accounts
Others
Total
Rp
US$
US$
US$
Rp
Rp
US$
US$
Rp
Rp
US$
Rp
US$
AUD
-
-
1
-
-
-
4
2
-
-
2
-
-
0
63
-
13
-
76
559
500
55
27
1,141
17
1,158
112
22
98
-
5
1,471
-
20
-
1
-
-
4
2
-
-
3
-
0
1
-
278
-
11
289
55
-
59
29
143
17
160
2,121
41
192
1
14
2,818
The time deposits have maturities of more than three months but not more than one year, with interest
rates as follows:
Rupiah
Foreign currencies
Refer to Note 31 for details of related party transactions.
2016
5.75%-6.00%
0.58%-1.64%
2015
-
0.85%-0.88%
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
5. 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
Indonusa
PT Indosat Tbk (“Indosat”)
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 3 months
3 to 6 months
More than 6 months
Total
Provision for impairment of receivables
Net
(ii) Third parties
Up to 3 months
3 to 6 months
More than 6 months
Total
Provision for impairment of receivables
Net
37
2016
2015
431
370
151
348
1,300
(406 )
894
2016
2015
7,801
1,252
9,053
(2,584 )
6,469
342
361
270
378
1,351
(247 )
1,104
8,020
1,194
9,214
(2,801 )
6,413
2016
2015
690
39
571
1,300
(406 )
894
2016
2015
5,566
658
2,829
9,053
(2,584 )
6,469
772
61
518
1,351
(247 )
1,104
5,816
522
2,876
9,214
(2,801 )
6,413
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES (continued)
b. By age (continued)
(iii) Aging of total trade receivables
2016
2015
Not past due
Past due up to 3 months
Past due more than 3 to 6
months
Past due more than 6 months
Total
Gross
4,535
1,721
697
3,400
10,353
Provision for
impairment of
receivables
Gross
Provision for
impairment of
receivables
266
202
4,353
2,235
583
3,394
10,565
216
2,364
3,048
177
401
495
1,917
2,990
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, 2016 and 2015, the carrying amounts of
trade receivables of the Group considered past due but not impaired amounted to
Rp3,005 billion and Rp3,430 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
Others
Total
Provision for impairment of receivables
Net
(ii) Third parties
Rupiah
U.S. dollar
Australian dollar
Others
Total
Provision for impairment of receivables
Net
2016
2015
1,300
0
0
1,300
(406 )
894
1,328
23
0
1,351
(247 )
1,104
2016
2015
7,565
1,437
40
11
9,053
(2,584 )
6,469
7,761
1,436
14
3
9,214
(2,801 )
6,413
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES (continued)
d. Movements in the provision for impairment of receivables
Beginning balance
Provision recognized during the year (Note 25)
Receivables written off
Ending balance
2016
2015
3,048
743
(801 )
2,990
3,096
1,010
(1,058 )
3,048
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, 2016, certain
Rp4,550 billion have been pledged as collateral under lending agreements (Notes 15, 16b and 16c).
the subsidiaries amounting
receivables of
trade
to
Refer to Note 31 for details of related party transactions.
6.
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 written off
Ending balance
2016
2015
299
168
164
631
(18 )
(29 )
0
(47 )
584
2016
2015
41
11
(5 )
47
342
131
96
569
(14 )
(27 )
0
(41 )
528
43
2
(4 )
41
inventories
in operations, maintenance, and
The
telecommunication service expenses as of December 31, 2016 and 2015 amounted to Rp2,105 billion
and Rp1,937 billion, respectively (Note 24).
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 subsidiaries amounting to Rp256 billion have been pledged as collateral under
lending agreements (Notes 15, 16b and 16c).
As of December 31, 2016 and 2015, modules and components held by the Group with book value
amounting to Rp199 billion and Rp219 billion, respectively, have 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, 2016 and 2015 amounted to Rp220 billion and Rp291 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses of inventories
arising from the insured risks.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
7. ADVANCES AND PREPAID EXPENSES
Frequency license (Notes 34c.i and 34c.ii)
Prepaid rental
Advances
Salaries
Advance to employee
Others
Total
Refer to Note 31 for details of related party transactions.
8. LONG-TERM INVESTMENTS
2016
2015
3,056
1,234
394
229
32
301
5,246
2,935
1,055
729
347
28
745
5,839
Percentage of
ownership
Beginning
balance
Additions
(Deductions)
2016
Share of net
profit (loss) of
associated
company
Dividend
Share of other
comprehensive
income of
associated
company
Ending
balance
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
24.43
20.00
51.00
51.00
49.00
49.00
25.00
1,404
221
71
50
40
6
-
1,792
15
1,807
-
-
-
(67 )
-
-
-
(67 )
43
(24 )
108
-
(33 )
17
2
(6 )
-
88
-
88
(23 )
-
-
-
-
-
-
(23 )
-
(23 )
(1 )
-
-
-
-
-
-
(1 )
-
(1 )
1,488
221
38
-
42
0
-
1,789
58
1,847
Summarized financial information of the Group’s investments accounted under the equity method for
2016:
Tiphone
Indonusa
Teltranet
ILCS
Telin Malaysia
CSM
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
Other comprehensive income (loss)
Total comprehensive income for the year
7,709
743
(1,248 )
(3,762 )
3,442
27,310
(26,445 )
(231 )
634
(166 )
468
(5 )
463
170
444
(532 )
(405 )
(323 )
605
(583 )
(17 )
5
(33 )
(28 )
7
(21 )
66
88
(78 )
(2 )
74
66
(149 )
(3 )
(86 )
21
(65 )
(0 )
(65 )
131
29
(73 )
(1 )
86
116
(112 )
0
4
0
4
(0 )
4
9
10
(35 )
(6 )
(22 )
8
(43 )
-
(35 )
-
(35 )
-
(35 )
161
761
(594 )
(1,206 )
(878)
131
(221 )
(88 )
(178 )
-
(178 )
-
(178 )
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
8. LONG-TERM INVESTMENTS (continued)
Percentage
of ownership
Beginning
balance
Additions
(Deductions)
2015
Share of net
(loss) profit of
associated
company
Dividend
Share of other
comprehensive
income of
associated
company
Ending
balance
Long-term investments in
associated companies:
Tiphonea
Indonusab
Teltranetc
Melond
ILCSe
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
Summarized financial information of the Group’s investments accounted under the equity method for
2015:
Tiphone
Indonusa
Teltranet
Melon
ILCS
Telin Malaysia
CSM
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
Other comprehensive
income (loss)
Total comprehensive
income for the year
6,539
1,261
(1,657 )
(3,073 )
3,070
501
333
(535 )
(568 )
(269 )
22,060
(21,295 )
599
(559 )
(265 )
500
(130 )
370
(7 )
363
(82 )
(42 )
-
(42 )
-
(42 )
117
58
(35 )
(1 )
139
0
(72 )
9
(63 )
16
(47 )
-
(47 )
131
27
(57 )
(2 )
99
105
32
(54 )
(1 )
82
201
(184 )
111
(108 )
2
19
(5 )
14
0
14
(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 )
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, 2016 and 2015, the fair value of investment amounting to Rp1,500 billion and Rp1,351 billion, respectively.
The fair value was calculated by multiplying number of shares by the published price quotation as of December 31, 2016 and
2015 amounting to Rp855 and Rp770 per share, respectively.
Reconciliation of
information
December 31, 2016 and 2015 is as follows:
financial
to
the carrying amount of
long-term
investment
in Tiphone as of
Assets
Liabilities
Net assets
Group’s proportionate share of net assets (24.43% in 2016 and 24.65% in 2015)
Goodwill
Carrying amount of long-term investment
2016
2015
8.452
(5.010 )
3,442
841
647
1,488
7,800
(4,730 )
3,070
757
647
1,404
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
8. LONG-TERM INVESTMENTS (continued)
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 by an agreement between Metra and Telstra
Holding Singapore Pte. Ltd. dated 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
in
c
d Melon previously was an associate. In 2016, the Company purchased Melon 52% stake through Metranet, thus becoming a
consolidated subsidiary (Note 1d).
ILCS is engaged in providing E-trade logistic services and other related services.
e
f Telin Malaysia is engaged in telecommunication services in Malaysia.
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 year ended
December 31, 2016 dan 2015 amounting to Rp219 billion and Rp215 billion, respectively.
9. 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
Vehicles
Office equipment
CPE assets
Power supply
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 unde finance lease
Transmission installation and equipment
Data processing equipment
Vehicles
Office equipment
CPE assets
Power supply
RSA assets
Total
Net Book Value
January 1,
2016
Acquisition
Additions
Deductions
Reclassifications/
Translations
December 31,
2016
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
94
73
22
90
252
232,673
89
10
-
-
-
-
-
-
-
12
-
5
-
-
-
-
-
-
-
-
-
-
116
59
311
13
218
751
2,603
80
6,746
161
318
73
139
60
1
17,169
229
77
63
3
-
125
-
29,199
(1 )
(3 )
(37 )
(160 )
(41 )
(11,319 )
-
(302 )
(77 )
(82 )
-
(12 )
(147 )
-
-
(815 )
(56 )
(22 )
-
-
-
-
(13,074 )
-
1,486
104
609
-
11,221
219
460
1,116
916
(5 )
259
(1 )
-
(17,199 )
-
-
-
-
-
-
-
(815 )
1,417
7,837
1,116
20,490
1,586
121,552
8,445
44,791
15,022
12,515
700
1,453
387
100
4,550
5,354
84
135
76
22
215
252
248,099
January 1,
2016
Acquisition
Additions
Deductions
Reclassifications/
Translations
December 31,
2016
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
290
106
1,588
329
9,957
415
1,534
1,145
1,067
77
141
69
-
542
47
19
43
2
80
13
17,464
(2 )
(37 )
(160 )
-
(10,686 )
-
(302 )
(70 )
(62 )
-
(11 )
(66 )
-
(815 )
(56 )
-
-
-
-
-
(12,267 )
6
-
(1 )
-
(32 )
(23 )
(455 )
(25 )
(40 )
(1 )
3
(1 )
-
-
-
-
-
-
-
-
(569 )
2,435
692
16,650
333
62,302
7,098
20,301
10,164
9,468
461
846
168
99
2,054
44
32
94
19
98
243
133,601
114,498
2,141
623
15,223
4
63,063
6,706
19,524
9,114
8,503
385
713
166
99
2,327
53
13
51
17
18
230
128,973
103,700
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. 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
Vehicles
Office equipment
CPE assets
Power supply
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
Vehicles
Office equipment
CPE assets
Power supply
RSA assets
Total
Net Book Value
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
44
21
22
-
252
209,718
86
263
41
126
870
4,278
93
4,458
381
408
37
150
135
-
14,623
260
-
50
52
-
90
-
26,401
-
-
(151 )
(66 )
-
(2,318 )
(1 )
(227 )
(92 )
(58 )
-
(46 )
(2 )
-
-
(202 )
(39 )
-
-
-
-
-
(3,202 )
-
1,199
203
555
-
9,514
127
542
757
759
(7 )
7
(4 )
-
(13,896 )
-
-
-
-
-
-
-
(244 )
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
94
73
22
90
252
232,673
January 1,
2015
Additions
Deductions
Reclassifications/
Translations
December 31,
2015
1,954
669
13,861
4
54,764
6,099
18,762
7,978
7,624
322
659
113
97
1,681
79
5
6
15
-
217
114,909
94,809
183
105
1,441
-
10,575
607
1,327
1,250
940
70
107
57
2
848
13
8
45
2
18
13
17,611
-
(151 )
(62 )
-
(2,290 )
(1 )
(225 )
(85 )
(58 )
-
(45 )
(1 )
-
(202 )
(39 )
-
-
-
-
-
(3,159 )
4
-
(17 )
-
14
1
(340 )
(29 )
(3 )
(7 )
(8 )
(3 )
-
-
-
-
-
-
-
-
(388 )
2,141
623
15,223
4
63,063
6,706
19,524
9,114
8,503
385
713
166
99
2,327
53
13
51
17
18
230
128,973
103,700
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. 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
2016
2015
765
(152 )
613
733
(8 )
725
b. Asset impairment
In 2014, the Group decided to cease its fixed wireless business no later than December 14, 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 value in use 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 were 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 value in use calculation is
most sensitive to the 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 is recognized as part of “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 34c.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.
In 2016, the Company derecognized its fixed wireless assets with cost and accumulated
depreciation amounting to Rp5,203 billion, respectively.
Management believes that there is no indication of impairment in the assets of other CGUs as of
December 31, 2016.
c. Others
(i)
Interest capitalized to property under construction amounted to Rp444 billion and Rp328 billion
for the years ended December 31, 2016 and 2015, respectively. The capitalization rate used
to determine the amount of borrowing costs eligible for capitalization ranged from 10.20% to
11.00% and 6.84% to 11.00% for the years ended December 31, 2016 and 2015, respectively.
(ii) No foreign exchange loss was capitalized as part of property under construction for the years
ended December 31, 2016 and 2015.
44
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(iii) In 2016 and 2015, the Group received proceeds from the insurance claim on lost and broken
property and equipment, with a total value of Rp77 billion and Rp119 billion, respectively, and
were recorded as part of “Other Income” in the consolidated statements of profit or loss and
other comprehensive income. In 2016 dan 2015, the net carrying values of those assets of
Rp19 billion and Rp35 billion, respectively, were charged to the consolidated statements of
profit or loss and other comprehensive income.
(iv) In 2016, Telkomsel decided to replace certain equipment units with net carrying amount of
Rp528 billion, as part of its modernization program. Accordingly, Telkomsel accelerated the
depreciation of such equipment units. The impact of the change was an increase in the
depreciation expense for the year ended December 31, 2016 amounting to Rp489 billion.
In 2015, Telkomsel decided to replace certain equipment units with a net carrying amount of
Rp1,967 billion, as part of its modernization program. Accordingly, Telkomsel accelerated the
depreciation of such equipment units. The impact of the change was an increase in the
depreciation expense for the year ended December 31, 2016 amounting to Rp274 billion.
This modernization program will decrease profit before income tax in 2017 amounting to
Rp30 billion.
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 the current
economic lives of the buildings and the transmissions. The impact of reduction in depreciation
expense for the year ended December 31, 2016 amounting to Rp244 billion. The impact of the
changes 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
2017
2018
(v) Exchange of property and equipment
Amount
198
135
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 2016 and 2015, the Company derecognized the copper cable network asset with net
carrying value of Rp3 billion and Rp2 billion, respectively, and recorded the fiber optic network
asset from the exchange transaction of Rp801 billion and Rp683 billion, respectively.
In 2016 and 2015, Telkomsel’s certain equipment units with net carrying amount of
Rp636 billion and Rp5 billion, respectively, were exchanged with equipment from Ericsson AB
and PT Huawei Tech Investment (“Huawei”). As of December 31, 2016, Telkomsel’s
equipment units with net carrying amount of Rp3 billion are going to be exchanged with
equipment from Ericsson AB and Huawei and, therefore, these equipment units were
reclassified as assets held for sale in the consolidated statements of financial position.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
(vi) 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 2017
and 2053. Management believes that there will be no issue in obtaining the extension of the
land rights when they expire.
(vii) As of December 31, 2016, the Group’s property and equipment excluding land rights, with net
carrying amount of Rp105,144 billion were insured against fire, theft, earthquake and other
specified
totalling
Rp11,861 billion, US$1,236 million, HKD3 million and SGD40 million. Management believes
that the insurance coverage is adequate to cover potential losses from the insured risks.
interruption, under blanket policies
including business
risks,
(viii) As of December 31, 2016, the percentage of completion of property under construction was
around 58.15% of the total contract value, with estimated dates of completion between
January 2017 and December 2018. 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.
(ix) All assets owned by the Company have been pledged as collateral for bonds (Notes 16b.i and
16b.ii). Certain property and equipment of the Company’s subsidiaries with gross carrying
value amounting to Rp11,385 billion have been pledged as collateral under lending agreements
(Notes 15 and 16).
(x) As of December 31, 2016, the cost of fully depreciated property and equipment of the Group
that are still used in operations amounted to Rp54,993 billion. The Group is currently performing
modernization of network assets to replace the fully depreciated property and equipment.
(xi) In 2016, 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 Rp28,521 billion.
(xii) 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 finance lease terms.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
9. PROPERTY AND EQUIPMENT (continued)
c. Others (continued)
Future minimum lease payments required for assets under finance lease are as follows:
Years
2016
2017
2018
2019
2020
2021
Thereafter
Total minimum lease payments
Interest
Net present value of minimum lease payments
Current maturities (Note 15b)
Long-term portion (Note 16)
2016
2015
-
987
892
816
771
740
954
5,160
(1,150 )
4,010
(658 )
3,352
1,027
991
888
800
766
724
873
6,069
(1,489 )
4,580
(641 )
3,939
The details of obligations under finance leases as of December 31, 2016 and 2015 are as follows:
PT Tower Bersama Infrastructure Tbk
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)
Total
2016
2015
1,465
1,295
241
217
112
5
675
4,010
1,589
1,460
340
227
132
84
748
4,580
10. ADVANCES AND OTHER NON-CURRENT ASSETS
The breakdown of advances and other non-current assets as of December 31, 2016 and 2015 is
as follows:
Advances for purchases of property and equipment
Prepaid rental - net of current portion (Note 7)
Claim for tax refund - net of current portion (Note 26)
Prepaid taxes (Note 26)
Deferred charges
Frequency license - net of current portion (Note 7)
Security deposit
Long-term trade receivables - net of current portion
Restricted cash
Others
Total
2016
2015
5,432
2,471
1,428
1,228
387
320
144
35
31
32
11,508
3,653
2,190
1,013
60
444
404
96
172
111
23
8,166
47
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
10. ADVANCES AND OTHER NON-CURRENT ASSETS (continued)
Prepaid rental covers rent of leased line and telecommunication equipment and land and building under
lease agreements of the Group with remaining rental periods ranging from 1 to 40 years.
As of December 31, 2016 and 2015, deferred charges represent deferred Indefeasible Right of Use
(“IRU”) Agreement charges. Total amortization of deferred charges
the years ended
December 31, 2016 and 2015 amounted to Rp40 billion and Rp46 billion, respectively.
for
Refer to Note 31 for details of related party transactions.
11. INTANGIBLE ASSETS
The details of intangible assets are as follows:
Gross carrying amount:
Balance, January 1, 2016
Additions
Deductions
Reclassifications/translations
Acquisition
Balance, December 31, 2016
Accumulated amortization and impairment
losses:
Balance, January 1, 2016
Amortization
Deductions
Reclassifications/translations
Balance, December 31, 2016
Net Book Value
Gross carrying amount:
Balance, January 1, 2015
Additions
Deductions
Reclassifications/translations
Balance, December 31, 2015
Accumulated amortization and impairment
losses:
Balance, January 1, 2015
Amortization
Deductions
Reclassifications/translations
Balance, December 31, 2015
Net Book Value
Goodwill
Software
License
Other
intangible
assets
Total
336
-
-
(4 )
117
449
(29 )
-
-
-
(29 )
420
6,267
925
-
20
10
7,222
(3,748 )
(1,027 )
-
(1 )
(4,776 )
2,446
68
9
(2 )
-
-
75
(49 )
(7 )
-
-
(56 )
19
580
27
-
-
-
607
(369 )
(34 )
-
-
(403 )
204
7,251
961
(2 )
16
127
8,353
(4,195 )
(1,068 )
-
(1 )
(5,264 )
3,089
Goodwill
Software
License
Other
intangible
assets
Total
322
15
-
(1 )
336
(29 )
-
-
-
(29 )
307
4,771
1,489
(1 )
8
6,267
(2,862 )
(883 )
1
(4 )
(3,748 )
2,519
67
1
-
-
68
(43 )
(6 )
-
-
(49 )
19
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
(i) Goodwill resulted from the acquisition of Sigma (2008), AdMedika (2010), data center BDM (2012),
Contact Centres Australia Pty. Ltd.
(2016)
(Note 1d). In addition, there was an acquisition of 80% ownership of PT Griya Silkindo Drajatmoerni
(“GSDm”) by NSI.
(2015), and Melon
(2014), MNDG
(ii) The remaining amortization periods of software range from 1-5 years.
(iii) As of December 31, 2016, the cost of fully amortized intangible assets that are still used in
operations amounted to Rp3,096 billion.
48
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
12. TRADE PAYABLES
2016
2015
Related parties
Purchases of equipment, materials and services
Payables to other telecommunication providers
Sub-total
Third parties
Purchases of equipment, materials and services
Radio frequency usage charges, concession fees and
Universal Service Obligation (“USO”) charges
Payables to other telecommunication providers
Sub-total
Total
Trade payables by currency are as follows:
1,223
324
1,547
9,434
1,256
1,281
11,971
13,518
Rupiah
U.S. dollar
Others
Total
Refer to Note 31 for details of related party transactions.
13. ACCRUED EXPENSES
Operation, maintenance and telecommunication services
Salaries and benefits
General, administrative and marketing expenses
Interest and bank charges
Total
Refer to Note 31 for details of related party transactions.
14. UNEARNED INCOME
a. Current portion of unearned income
Prepaid pulse reload vouchers
Telecommunication tower leases
Other telecommunications services
Others
Total
b. Non-current portion of unearned income
Other telecommunications services
Indefeasible Right of Use
Total
2016
2015
11,270
2,196
52
13,518
2016
2015
6,165
2,993
1,914
211
11,283
2016
2015
4,959
199
189
216
5,563
2016
2015
256
169
425
1,891
184
2,075
9,593
1,328
998
11,919
13,994
11,169
2,791
34
13,994
4,459
1,689
1,859
240
8,247
3,630
165
96
469
4,360
289
82
371
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
15. SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS
a. Short-term bank loans
Lenders
Related parties
BNI
Sub-total
Third parties
UOB
Bank CIMB Niaga
PT Bank DBS Indonesia
SCB
PT Bank Danamon Indonesia, Tbk
(“Danamon”)
Others
Sub-total
Total
2016
Outstanding
2015
Outstanding
Currency
Original currency
(in millions)
Rupiah
equivalent
Original currency
(in millions)
Rupiah
equivalent
Rp
Rp
Rp
Rp
Rp
Rp
Rp
-
-
-
-
-
-
-
143
143
269
143
95
90
60
111
768
911
-
-
-
-
-
-
-
25
25
200
152
-
39
80
106
577
602
Other significant information relating to short-term bank loans as of December 31, 2016 is as
follows:
Borrower Currency
Total facility
(in billions) Maturity date
Interest
payment
period
Interest
rate per
annum
Security
UOB
November 22, 2013
Infomedia
December 20, 2016
Finnet
Rp
Rp
200 November 22, 2017
Monthly
300 December 21, 2018
Monthly
Bank CIMB Niaga
April 28, 2013a
GSD
Rp
85
January 1, 2017 f
Monthly
October 29, 2014
December 14, 2015b
Infomedia
Solusi
Humanikad
Balebatc
Rp
Rp
50 January 18, 2017
Monthly
17
July 30, 2017
Monthly
11.5%-12% Trade receivables
(Note 5)
None
1 month
JIBOR+
2.25%
10.9%-
11.5%
Trade receivables
(Note 5) and
property and
equipment
(Note 9)
10.00% Trade receivables
(Note 5)
13.00% Trade receivables
(Note 5),
inventories
(Note 6) and
property and
equipment
(Note 9)
BNI
October 31, 2016
December 31, 2016
PT. Bank DBS Indonesia
April 12, 2016
SCB
June 26, 2015
Danamon
Telkom
Infra
Telkom
Infra
Rp
Rp
44 October 31, 2017
Monthly
101 November 30, 2017
Monthly
Sigmae
USD
0.02
July 31, 2017 Semi-annually
1 month
JIBOR+
3.35%
1 month
JIBOR+
3.35%
Trade receivables
(Note 5)
Trade receivables
(Note 5)
Trade receivables
(Note 5)
3.25%
(USD) /
10.75%
(IDR)
GSD
Rp
91
December 30,
2016f
Monthly
10.50%
None
December 15, 2016
Infomedia
Rp
60 December 15, 2017
Monthly
8.75% Trade receivables
(Note 5)
The credit facilities were obtained by the Company’s subsidiaries for working capital purposes.
a Based on the latest amendment dated November 11, 2014.
b Based on the latest amendment dated December 14, 2015.
c MD Media’s subsidiary.
d
Infomedia’s subsidiary.
e Facility in USD. Withdrawal can be executed in USD and IDR.
f Unsettled loan will be automatically extended.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
15. SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS
(continued)
b. Current maturities of long-term borrowings
Two-step loans
Bonds and notes
Bank loans
Obligations under finance leases
Total
16. LONG-TERM LOANS AND OTHER BORROWINGS
Two-step loans
Bonds and notes
Bank loans
Other borrowings
Obligations under finance leases
Total
Notes
16a
16b
16c
9c.xii
Notes
16a
16b
16c
16d
9c.xii
2016
2015
225
1
3,637
658
4,521
224
49
2,928
641
3,842
2016
2015
1,067
9,322
11,929
697
3,352
26,367
1,296
9,499
15,434
-
3,939
30,168
Scheduled principal payments as of December 31, 2016 are as follows:
Notes
16a
16b
16c
16d
9c.xii
Two-step loans
Bonds and notes
Bank loans
Other borrowings
Obligations under
finance leases
Total
a. Two-step loans
Total
2018
2019
Year
2020
2021
1,067
9,322
11,929
697
3,352
26,367
201
0
4,675
53
626
5,555
182
220
2,313
107
605
3,427
183
2,115
2,219
107
613
5,237
Thereafter
335
6,987
1,612
323
166
0
1,110
107
634
2,017
874
10,131
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 15b)
Long-term portion
2016
Outstanding
2015
Outstanding
Currency
Yen
US$
Rp
Original
currency
(in millions)
6,143
22
-
Original
currency
(in millions)
6,911
26
-
Rupiah
equivalent
707
295
290
1,292
(225 )
1,067
Rupiah
equivalent
792
363
365
1,520
(224 )
1,296
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. LONG-TERM LOANS AND OTHER BORROWINGS (continued)
a. Two-step loans (continued)
Lenders
Overseas banks
Principal
payment
schedule
Semi-annually
Semi-annually
Semi-annually
Interest payment
period
Semi-annually
Semi-annually
Semi-annually
Interest rate per
annum
2.95%
3.85%
8.25%
Currency
Yen
US$
Rp
The loans were intended for the development of telecommunications infrastructure and supporting
telecommunications equipment. The loans will be settled semi-annually and 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, 2016, the Company has complied with the above-mentioned ratios.
b. Bonds and notes
Bonds and notes
Bonds
2010
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
Total
Current maturities (Note 15b)
Long-term portion
2016
Outstanding
2015
Outstanding
Currency
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
-
-
-
-
-
-
-
-
-
0
1,995
2,200
2,100
1,200
1,500
220
120
-
-
1
9,336
(13 )
9,323
(1 )
9,322
-
-
-
-
-
-
-
-
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
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
US$
US$
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. LONG-TERM LOANS AND OTHER BORROWINGS (continued)
b. Bonds and notes (continued)
i. Bonds
2010
Bonds
Principal
Series B
1,995
Issuer
The Company
Listed on
IDX
Interest
payment
period
June 25, 2010 July 6, 2020 Quarterly
Issuance
date
Maturity
date
Interest rate
per annum
10.20%
The bonds are secured by all of the Company’s assets, movable or non-movable, either existing
or in the future (Note 9c.ix). The underwriters of the bonds are PT Bahana Securities (“Bahana”),
PT Danareksa Sekuritas, and PT Mandiri Sekuritas and the trustee is Bank CIMB Niaga.
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, 2016, 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, 2016, the Company has complied with the above-mentioned ratios.
2015
Bonds
Principal
Issuer
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
7,000
Listed
on
IDX
IDX
IDX
IDX
Issuance
date
Maturity date
June 23, 2015 June 23, 2022
June 23, 2015 June 23, 2025
June 23, 2015 June 23, 2030
June 23, 2015 June 23, 2045
Interest
payment period
Quarterly
Quarterly
Quarterly
Quarterly
Interest rate
per annum
9.93%
10.25%
10.60%
11.00%
The bonds are secured by all of the Company’s assets, movable or non-movable, either existing
or in the future (Note 9c.ix). The underwriters of the bonds are Bahana, PT Danareksa Sekuritas,
PT Mandiri Sekuritas, and PT Trimegah Sekuritas and the trustee is Bank Permata.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. LONG-TERM LOANS AND OTHER BORROWINGS (continued)
b. Bonds and notes (continued)
i. 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 and support, and merger and acquisition of
some domestic and international entities.
As of December 31, 2016, Corporate bond ratings provided by (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 4:1
3. Debt service coverage is at least 125%
As of December 31, 2016, the Company has complied with the above-mentioned ratios.
ii. MTN
GSD
Notes
Series A
Series B
Currency
Rp
Rp
Total
Principal
220
120
340
Issuance date
November 14, 2014
March 6, 2015
Interest
payment
period
Maturity date
November 14, 2019 Semi-annually
March 6, 2020 Semi-annually
Interest rate
per annum
11%
11%
Based on Agreement of Issuance and Appointment of Monitoring and Insurance Agents of
Medium Term Notes (MTN) 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 payment agent and 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 are owned or will be owned by GSD, have been pledged as collateral for MTN
(Notes 5, 6, and 9c.ix)
Under to the agreement, GSD is required to comply with all covenants or restriction 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, 2016, GSD has complied with the above-mentioned ratios.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. LONG-TERM LOANS AND OTHER BORROWINGS (continued)
b. Bonds and notes (continued)
ii. MTN (continued)
Finnet
Notes
Currency
Principal
Issuance
date
Maturity
date
MTN I Finnet year 2015
Rp
200 July 1, 2015 July 1, 2022
Interest
payment period
Quarterly
Interest rate
per annum
11%
Based on Agreement of Debt Acknowledgement of Medium Term Notes (MTN) I Finnet Year
2015 as covered by notarial deed No. 47 dated June 30, 2015 of Utiek R. Abdurachman, S.H.,
MLI., MKn., Finnet will issue MTN through private placement with the principal amounting to
Rp200 billion.
PT BNI Asset Management acts as the arranger, Bank Mega as the trustee and KSEI as the
payment agent and 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
In 2016, Finnet has made early payments on MTN amounting to Rp200 billion through
refinancing of UOB with the term of the agreement for 2 year.
iii. Promissory Notes
Supplier
Currency
Principal*
PT Huaweia
ZTE
US$
US$
Issuance date
April 30, 2013
0.2
Principal payment
schedule
-
Interest
payment period
Semi-annually
0.1 August 20, 2009b
February 4, 2017
Semi-annually
Interest rate
per annum
6 months
LIBOR+1.5%
6 months
LIBOR+1.5%s
*In original currency
aHas been fully paid on July 30, 2016
bBased on the latest amendment on August 15, 2011
Based on Agreement of Frame Supply and Deferred Payment Arrangement between the
Company, ZTE and PT Huawei, the promissory notes issued by the Company to 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.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loans
Lenders
Related parties
BNI
BRI
Bank Mandiri
Sub-total
Third parties
Syndication of banks
The Bank of Tokyo-Mitsubishi-UFJ, Ltd.
Bank CIMB Niaga
PT Bank Sumitomo Mitsui Indonesia
UOB
United Overseas Bank Limited
(“UOB Singapore”)
PT Bank ANZ Indonesia
Japan Bank for International Cooperation
(“JBIC”)
PT Bank Central Asia Tbk (“BCA”)
ABN Amro Bank N.V., Hong Kong
(“AAB Hong Kong”)
Others
Sub-total
Total
Unamortized debt issuance cost
Current maturities (Note 15b)
Long-term portion
2016
Outstanding
2015
Outstanding
Currency
Original
currency
(in millions)
Rupiah
equivalent
Original
currency
(in millions)
Rupiah
equivalent
Rp
Rp
Rp
Rp
Rp
US$
Rp
Rp
Rp
US$
Rp
US$
US$
Rp
US$
Rp
-
-
-
-
-
-
-
-
-
36
-
-
16
-
-
-
3,222
1,871
1,232
6,325
3,650
2,361
-
1,162
647
500
484
240
-
211
-
-
37
9,292
15,617
(51 )
15,566
(3,637 )
11,929
-
-
-
-
-
75
-
-
-
-
-
75
22
-
0
-
3,430
1,806
2,191
7,427
4,900
2,370
1,035
770
370
-
-
90
1,035
303
111
0
19
11,003
18,430
(68 )
18,362
(2,928 )
15,434
Other significant information relating to bank loans as of December 31, 2016 is as follows:
Borrower
Currency
Total
facility*
Current
period
payment
Principal
payment
schedule
Interest
payment
period
Interest rate
per annum
Security
1,000
Quarterly
Semi-
annually
(2014-2020)
242
Quarterly
Semi-
annually
(2016-2022)
Semi-
annually
(2016-2022)
8
Quarterly
91
Monthly
(2016-2020)
Monthly
3 months
JIBOR+3.00%
3 months
JIBOR+2.5%
3 months
JIBOR+2.5%
1 months
JIBOR+3.35%
Trade
receivables
(Note 5) and
property and
equipment
(Note 9)
All assets
All assets
Trade
receivables
(Note 5) and
property and
equipment
(Note 9)
Syndication of banks
December 19, 2012
(BNI, BRI and
Bank Mandiri) a
Dayamitra
Rp
2,500
March 13, 2015
(BNI and BCA) a&h
The
Company
Rp
2,900
March 13, 2015
(BNI and BCA) a&h
BNI
GSD
Rp
100
March 13, 2013a&c
Sigma
Rp
1,400
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loans (continued)
Borrower
Currency
Total
facility*
Current
period
payment
Principal
payment
schedule
Interest
payment
period
Interest rate
per annum
Security
BNI (continued)
November 20, 2013
The
Company
Rp
1,500
January 10, 2014 a&c
Sigma
Rp
247
July 21, 2014 a
Metra
Rp
40
November 3, 2014 a&g
Telkom
Infratel
April 8, 2015 a
Telkomsel
June 10, 2015 a
Metra
Rp
Rp
Rp
450
1,000
44
October 12, 2015a
Telkom
Akses
Rp
1,400
October 31, 2016
Telkom Infra
Rp
June 27, 2013
NSI
Rp
59
4
March 17, 2014
NSI
Rp
0.7
June 27, 2014
NSI
Rp
2.5
375
Quarterly
None
Semi-
annually
(2015-2018)
Monthly
(2016-2022)
38
Monthly
3 months
JIBOR+2.65%
1 month
JIBOR+3.35%
13
Semi-
annually
(2015-2017)
Monthly
10.00%
131 Quarterly
(2015-2018)
Monthly
1 month
JIBOR+3.35%
667
15
April 14,
2018
Semi-
annually
(2015-2017)
Quarterly
3 months
JIBOR+1.95%
Monthly
10.00%
151
Quarterly
Semi-
annually
(2016-2019)
-
Quartely
(2017-2019)
Monthly
0
Monthly
(2014-2023)
Monthly
0
Monthly
(2014-2023)
Monthly
0
Monthly
(2014-2023)
Monthly
3 months
JIBOR+2.9%
1 month
JIBOR+3.35%
11%
12.25%
13.5%
Trade
receivables
(Note 5) and
property
and
equipment
(Note 9)
Trade
receivables
(Note 5) and
property
and
equipment
(Note 9)
Trade
receivables
(Note 5)
None
Trade
receivables
(Note 5) and
property
and
Equipment
(Note 9)
Trade
receivables
(Note 5),
inventories
(Note 6),
and
property
and
equipment
(Note 9)
Trade
receivables
(Note 5)
Property
and
equipment
(Note 9)
Property
and
equipment
(Note 9)
Property
and
equipment
(Note 9)
The Bank of Tokyo –
Mitsubishi UFJ, Ltd.
October 9, 2014
Dayamitra
Rp
600
120 Quarterly
(2016-2019)
Quarterly
3 months
JIBOR+2.4%
March 13, 2015 a&h
Metra
March 13, 2015 a&h
Infomedia
April 8, 2015 a
Telkomsel
Rp
Rp
Rp
April 8, 2015 a
Telkomsel
US$
400
250
1,000
0.075
57
12 Quarterly
(2016-2020)
5 Quarterly
(2016-2020)
April 14,
2018
April 14,
2018
667
0.075
Quarterly
Quarterly
Quarterly
Quarterly
3 months
JIBOR+2.15%
3 months
JIBOR+2.15%
3 months
JIBOR+1.95%
3 months
LIBOR+1.2%
Trade
receivables
(Note 5) and
property
and
equipment
(Note 9)
None
None
None
None
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loans (continued)
Borrower Currency
Total
facility*
Current
period
payment
Principal
payment
schedule
Interest
payment
period
Interest rate
per annum
Security
The Bank of Tokyo –
Mitsubishi UFJ, Ltd.
(continued)
November 2, 2015
Dayamitra
Rp
400
-
Quarterly
(2017-2020)
Quarterly
3 month
JIBOR+2.6%
March 13, 2015 a&h
Dayamitra
Rp
October 3, 2016
Dayamitra
Rp
100
500
3
-
Quarterly
(2016-2020)
Semi-
annually
(2019-2024)
Quarterly
Quarterly
3 month
JIBOR+2.15%
3 month
JIBOR+2.25%
BRI
July 20, 2011a
Dayamitra
Rp
1,000
220
Quarterly
Semi-
annually
(2013-2017)
3 months
JIBOR+1.40%
and 3 months
JIBOR+3.50%
Trade receivables
(Note 5) and
property and
equipment
(Note 9)
None
Property and
equipment
(Note 9)
Property and
equipment
(Note 9)
October 30, 2013
GSD
Rp
70
8
Monthly
(2014-2021)
Monthly
October 30, 2013
GSD
Rp
34
45
Monthly
(2014-2021)
Monthly
10.00% Trade receivables
(Note 5), property
and equipment
(Note 9) and lease
agreement
10.00% Trade receivables
(Note 5), property
and equipment
(Note 9) and lease
agreement
None
3 months
JIBOR+2.65%
Property and
equipment
(Note 9)
None
Property and
equipment
(Note 9)
Property and
equipment
(Note 9)
None
9.5% Trade receivables
(Note 5) and
property and
equipment
(Note 9)
November 20, 2013
The
Company
Rp
1,500
375
December 18, 2015 Dayamitra
Rp
800
-
Bank Mandiri
November 20, 2013
The
Company
Rp
1,500
375
August 11, 2014
August 11, 2014
Graha Yasa
Selaras
Graha Yasa
Selaras
Rp
Rp
71
71
Semi-
annually
(2015-2018)
Semi-
annualy
(2017-2020)
Semi-
annually
(2015-2018)
Monthly
(2016-2021)
4
Quarterly
Quarterly
3 months
JIBOR+2.70%
Quarterly
Monthly
3 months
JIBOR+2.65%
3 months
JIBOR+3.25%
2
Monthly
(2016-2021)
Monthly
3 months
JIBOR+3.25%
April 8, 2015 a
Telkomsel
Rp
1,000
667
September 27,
Patrakom
Rp
70
-
2016
April 14,
2018
Quarterly
(2017-2019)
Quarterly
Monthly
3 months
JIBOR+1.95%
Bank CIMB Niaga
March 31, 2011
GSD
Rp
24
3
Monthly
(2011-2020)
Monthly
9.75%
March 31, 2011
GSD
Rp
13
2
Monthly
(2011-2019)
Monthly
9.75%
September 9, 2011
GSD
Rp
41
4
Monthly
(2011-2021)
Monthly
9.75%
Property and
equipment
(Note 9) and lease
agreement
Property and
equipment
(Note 9) and lease
agreement
Property and
equipment
(Note 9) and lease
agreement
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loans (continued)
Borrower Currency
Total
facility*
Current
period
payment
Principal
payment
schedule
Interest
payment
period
Interest rate
per annum
Security
Bank CIMB Niaga
(continued)
September 20, 2012a
TLT
Rp
1,150
-
Monthly
(2015-2030)
Quarterly 3 Months JIBOR
+3.45%
September 20, 2012a
TLT
Rp
August 26, 2013d
Balebatf
Rp
118
3.5
-
1
Monthly
(2015-2030)
Monthly
(2013-2018)
Monthly
Monthly
9.00%
Property and
equipment
(Note 9)
Property and
equipment (Note9)
13% Trade receivables
(Note 5), inventories
(Note 6) and
property and
equipment
(Note 9)
PT Bank Sumitomo
Mitsui Indonesia
March 13, 2015 a&h
Metra
Rp
400
12
March 13, 2015a&h
Infomedia
Rp
March 13, 2015a&h
Dayamitra
Rp
250
100
5
3
Quarterly
(2016-2020)
Quarterly
(2016-2020)
Quartely
(2016-2020)
Quarterly
Quarterly
Quarterly
3 months
JIBOR+2.15%
3 months
JIBOR+2.15%
3 months
JIBOR+2.15%
UOB
September 22, 2016
Dayamitra
Rp
500
UOB Singapore
September 9, 2016
TII USD
0.06
- Semi-annually
(2018-2024)
Quarterly
3 months
JIBOR+2.2%
- Semi-annually
(2019-2022)
Quarterly
3 months
LIBOR+1.5%
Bank ANZ Indonesia
March 13, 2015 a&h
GSD
Rp
249.5
- June 13, 2020 Quarterly
April 8, 2015 a
Telkomsel US$
0.075
0.075 April 14, 2018 Quarterly
JBIC
March 28, 2013a&e
BCA
July 9, 2009b and
July 5, 2010b
The
Company
US$
0.03
0.006 Semi-annually
(2014-2019)
Semi-
annually
Telkomsel
Rp
4,000
111 Semi-annually
(2009-2016)
Quarterly
3 months
JIBOR+1.00%
3 months
JIBOR+2.00%
3 months
LIBOR+1.20%
2.18% and
6 months
LIBOR+1.20%
None
None
None
Property and
equipment
(Note 9)
None
None
None
None
None
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, 2016, the Group has complied with all covenants
or restrictions, except for certain loans. As of December 31, 2016, the Group has been granted waivers from creditors
where payment is no longer required as a consequence of breaching the agreements.
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, 2016 Telkomsel has complied
with the above covenants.
59
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
16. LONG-TERM LOANS AND OTHER BORROWINGS (continued)
c. Bank loans (continued)
c Based on the latest amendment on January 12, 2015.
d Based on the latest amendment on September 22, 2014.
e
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.
f MD Media’s subsidiary.
g Based on the latest amendment on July 13, 2015.
h 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, 2016 the unused facilities for PT Bank Sumitomo Mitsui Indonesia, The Bank of Tokyo – Mitsubishi UFJ, Ltd.,
PT Bank ANZ Indonesia amounted to Rp82.5 billion, Rp82.5 billion and Rp250.5 billion, respectively.
i Based on the latest amendment on November 14, 2016.
d. Other borrowing
Borrower Currency
Total facility
(in billions)
Current period
payment
(in billions)
Principal
payment
schedule
Interest
payment
period
Interest rate
per annum
Security
PT Sarana Mukti
Infrastruktur
October 12, 2016
DMT
Rp
700
-
Semi-
annually
(2017-2025)
Quarterly
3 months
JIBOR+2.20%
Property and
equipment
(Note 9)
Under the agreement, DMT is required to comply with all covenants or restrictions, including
maintaining financial ratios as follows :
1. Debt to equity ratio should not exceed 5:1
2. Net debt to EBITDA ratio should not exceed 4:1
3. Minimal Debt service coverage is 100%
As of December 31, 2016, DMT has complied with the above-mentioned ratios.
17. NON-CONTROLLING INTERESTS
The details of non-controlling interests are as follows:
Non-controlling interests in net assets of subsidiaries:
2016
2015
Telkomsel
GSD
Metra
TII
Total
20,778
141
208
33
21,160
Non-controlling interests in net comprehensive income (loss)
2016
2015
of subsidiaries:
Telkomsel
Metra
TII
GSD
Total
9,790
(40 )
(3 )
(5 )
9,742
18,024
137
95
36
18,292
7,818
(5 )
(2 )
7
7,818
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
17. NON-CONTROLLING INTERESTS (continued)
Material partly-owned subsidiary
As of December 31, 2016 and 2015, the non-controlling interest holds 35% ownership interest in
Telkomsel (Note 1d) which is considered material to the company (Note 1d).
The summarized financial information of Telkomsel below is provided based on amounts before
elimination of inter-company balances and transactions.
Summarized statements 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
2016
2015
28,818
60,963
(21,891 )
(8,520 )
59,370
38,592
20,778
25,660
58,426
(20,020 )
(12,565 )
51,501
33,477
18,024
Summarized statements of profit or loss and other comprehensive income
Revenues
Operating expenses
Other income
Profit before income tax
Income tax expense - net
Profit for the year from continuing operations
Other comprehensive income (expenses) - net
Net 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
2016
2015
86,725
(49,751 )
483
37,457
(9,263 )
28,194
(222 )
27,972
9,790
7,036
76,055
(46,429 )
105
29,731
(7,363 )
22,368
(29 )
22,339
7,818
7,810
2016
2015
42,827
(12,794 )
(24,132 )
5,901
36,130
(12,951 )
(19,456 )
3,723
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
18. 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
Directors (Note 1b):
Alex Janangkih Sinaga
Indra Utoyo
Honesti Basyir
Herdy Rosadi Harman
Abdus Somad Arief
Dian Rachmawan
Public (individually less than 5%)
Total
Treasury stock (Note 20)
Total
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 Janangkih Sinaga
Heri Sunaryadi
Indra Utoyo
Muhammad Awaluddin
Honesti Basyir
Herdy Rosadi Harman
Abdus Somad Arief
Dian Rachmawan
Public (individually less than 5%)
Total
Treasury stock (Note 20)
Total
Number of shares
2016
Percentage of
ownership
Total paid-up
capital
1
51,602,353,559
7,000,589,980
414,157
372,741
875,297
920,349
1,972,644
1,945,644
828,012
828,314
888,854
40,450,227,048
99,062,216,600
1,737,779,800
100,799,996,400
0
52.09
7.07
0
0
0
0
0
0
0
0
0
40.84
100.00
0
100.00
0
2,580
350
0
0
0
0
0
0
0
0
0
2,023
4,953
87
5,040
Number of shares
2015
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
* 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 can not
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.
62
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
19. ADDITIONAL PAID-IN CAPITAL
Proceeds from sale of 933,333,000 shares in excess of par
value through IPO in 1995
Excess of value over cost of selling 215,000,000 shares
under the treasury stock plan phase II (Note 20)
Excess of value over cost of selling 211,290,500 shares
under the treasury stock plan phase I (Note 20)
Difference in value arising from restructuring transactions
between entities under common control
Excess of value over cost of treasury stock transferred to
employee stock ownership program (Note 20)
Excess of value over cost of selling 22,363,000 shares under
the treasury stock plan phase III (Note 20)
Excess of value over cost of selling 864,000,000 shares
under the treasury stock plan phase IV (Note 20)
Capitalization into 746,666,640 Series B shares in 1999
Net
2016
2015
1,446
1,446
576
544
478
228
36
1,996
(373 )
4,931
576
544
478
228
36
-
(373 )
2,935
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, 2016 and 2015, the accumulated development
of the related infrastructure amounting to Rp537 billion, respectively.
this compensation
funds received
to use
from
the
for
20. TREASURY STOCK
Phase
I
II
III
-
IV
Basis
EGM
AGM
AGM
BAPEPAM - LK
AGM
Period
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
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
Maximum Purchase
Movements in treasury stock as a result of the repurchase of shares are as follows:
Beginning balance
Sale of treasury stock
Number of
shares
2,601,779,800
(864,000,000 )
2016
%
Rp
Number of
shares
2015
%
2.58
(0.86 )
3,804 2,624,142,800
(22,363,000 )
(1,263 )
2.60
(0.02 )
Rp
3,836
(32 )
Ending balance
1,737,779,800
1.72
2,541 2,601,779,800
2.58
3,804
63
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
20. 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 phases 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 (equivalent 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 (equivalent 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 19).
On June 13, 2014, the Company resold 215,000,000 shares (equivalent 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 19).
On December 21, 2015, the Company resold 4,472,600 shares (equivalent 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 19).
On June 29, 2016, the Company resold 172,800,000 shares (equivalent to 864,000,000 shares after
stock split) of treasury stock phase IV with fair value of Rp3,259 billion (net of related costs to sell the
shares). The excess amounting to Rp1,996 billion in value of the treasury stock sold over their
acquisition cost was recorded as additional paid-in capital (Note 19).
21. OTHER EQUITY
Effect of change in equity of associated companies
Unrealized holding gain on available-for-sale securities
Transalation adjustment
Difference due to acquisition of non controlling interests in
subsidiaries
Other equity components
Total
2016
2015
386
38
503
(637 )
49
339
386
38
543
(508 )
49
508
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
22. REVENUES
Telephone revenues
Cellular
Usage charges
Monthly subscription charges
Fixed lines
Usage charges
Monthly subscription charges
Call center
Others
Total telephone revenues
Interconnection revenues
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
Total data, internet, and information technology
service revenues
Network revenues
Other revenues
Sales of handset
Telecommunication tower leases
Call center service
E-payment
E-health
CPE and terminal
Others
Total other revenues
Total revenues
2016
2015
38,238
259
38,497
3,847
3,311
290
94
7,542
46,039
4,151
28,308
15,980
13,073
1,546
64
58,971
1,444
1,490
733
678
424
415
192
1,796
5,728
36,853
432
37,285
4,635
2,821
275
102
7,833
45,118
4,290
19,665
15,132
12,307
581
135
47,820
1,231
1,516
721
668
126
192
221
567
4,011
116,333
102,470
The detail of net revenues received by the Group from agency relationships for the years ended
December 31, 2016 and 2015 are as follows:
Gross revenues
Compensation to value added service providers
Net revenues
Refer to Note 31 for details of related party transactions.
2016
2015
29,319
(1,011 )
28,308
20,414
(749 )
19,665
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
23. PERSONNEL EXPENSES
The breakdown of personnel expenses is as follows:
Salaries and related benefits
Vacation pay, incentives and other benefits
Pension benefit cost (Note 29)
Early retirement program
Long Service Awards (“LSA”) expense (Note 30)
Net periodic post-employment health care
benefit cost (Note 29)
Other employee benefit cost (Note 29)
Other post-employment benefit cost (Note 29)
Others
Total
2016
2015
7,122
4,219
1,068
628
237
163
82
48
45
13,612
5,684
4,575
432
683
152
216
53
47
32
11,874
Refer to Note 31 for details of related party transactions.
24. OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES
The breakdown of operation, maintenance and
follows:
telecommunication service expenses
is as
Operation and maintenance
Radio frequency usage charges (Notes 34c.i and 34c.ii)
Concession fees and USO charges
Leased lines and CPE
Cost of IT services
Cost of handset sold (Note 6)
Electricity, gas and water
Cost of SIM cards and vouchers (Note 6)
Vehicles rental and supporting facilities
Tower leases
Insurance
Others
Total
2016
2015
17,047
3,687
2,217
2,578
1,563
1,481
960
624
367
322
256
161
31,263
15,129
3,626
2,230
1,913
882
1,493
1,014
444
296
646
312
131
28,116
Refer to Note 31 for details of related party transactions.
25. GENERAL AND ADMINISTRATIVE EXPENSES
The breakdown of general and administrative expenses is as follows:
General expenses
Provision for impairment of receivables (Note 5d)
Professional fees
Travelling
Training, education and recruitment
Meeting
Collection expenses
Social contribution
Others
Total
Refer to Note 31 for details of related party transactions.
66
2016
2015
1,626
743
594
436
399
207
152
134
319
4,610
1,032
1,010
424
347
393
163
368
116
351
4,204
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. TAXATION
a. Claims for tax refund
The Company
Value Added Tax (“VAT”) (Note 26e.i)
Corporate income tax
Subsidiaries
Corporate income tax
VAT
Income tax
Article 23 - Withholding tax on services
Total claims for tax refund
Current portion
Non-current portion
b. Prepaid taxes
The Company
Income tax
Article 19 - Revaluation of fixed assets (Note 26f)
VAT
Subsidiaries
Corporate income tax
VAT
Income tax
Article 23 - Withholding tax on services
Total prepaid taxes
Current portion
Non-current portion
c. Taxes payable
The Company
Income taxes
2016
2015
335
473
66
1,146
-
2,020
(592 )
1,428
2016
2015
538
1,075
62
1,639
52
3,366
(2,138 )
1,228
2016
2015
Article 4 (2) - Final tax
Article 21 - Individual income tax
Article 22 - Withholding tax on goods delivery and
imports
Article 23 - Withholding tax on services
Article 25 - Installment of corporate income tax
Article 26 - Withholding tax on non-resident income
VAT
VAT - Tax collector
29
141
2
42
-
136
297
647
298
479
290
12
0
1,079
(66 )
1,013
750
350
16
1,596
20
2,732
(2,672 )
60
37
51
2
23
17
2
396
528
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. TAXATION (continued)
c. Taxes payable (continued)
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 services
Article 25 - Installment of corporate income tax
Article 26 - Withholding tax on non-resident income
Article 29 - Corporate income tax
VAT
Total Taxes Payable
63
121
2
93
136
16
1,100
776
2,307
2,954
d. The components of income tax expense (benefit) are as follows:
Current
The Company
Subsidiaries
Deferred
The Company
Subsidiaries
Net income tax expense
2016
2015
671
10,067
10,738
(844 )
(877 )
(1,721 )
9,017
54
113
1
102
237
9
1,548
681
2,745
3,273
201
8,164
8,365
(38 )
(302 )
(340 )
8,025
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 statements of profit or loss and other comprehensive income
is as follows:
2016
2015
Profit before income tax
Less: income subject to final tax - net
Income tax expense 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 expense
Deffered tax assets that cannot be utilized - net
Deffered tax assets on fixed asset revaluation for tax
purpose
Others
Net income tax expense - net
38,189
(1,684 )
36,505
7,301
1,904
491
345
56
(1,415 )
335
9,017
31,342
(1,531 )
29,811
5,962
1,511
322
111
-
-
119
8,025
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. 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, 2016 and 2015 is as follows:
2016
2015
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 personnel expenses
Net periodic pension and other post-retirement
benefits costs
Valuation of fair value of put option and long-term
investment
Deferred installation fee
Provision for incentive to subscribers’ migration
Depreciation and gain on sale of property and equipment
Provision for impairment of assets
Provision for onerous contracts
Finance leases
Provision for impairment and trade receivables written-off
Other provisions
Net temporary differences
Permanent differences:
Tax penalties
Trade receivables written-off
Employee benefits
Net periodic post-retirement health care benefit costs
Donations
Equity in net income of associates and subsidiaries
Others
Net permanent differences
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
38,189
24,613
62,802
(40,166 )
22,636
(670 )
21,966
560
513
172
50
-
(1,880 )
(1,186 )
(547 )
(337 )
(43 )
(106 )
(2,804 )
640
590
302
163
162
(19,445 )
129
(17,459 )
1,703
340
331
671
10,067
10,738
31,342
15,553
46,895
(31,007 )
15,888
(591 )
15,297
127
12
117
(33 )
(209 )
(948 )
-
547
231
(206 )
296
(66 )
29
-
232
216
175
(15,590 )
258
(14,680 )
551
110
91
201
8,164
8,365
69
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. 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. 81/2007 as amended
by Government Regulation No. 77/2013 and lastly by Government Regulation No. 56/2015
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 the year ended December 31, 2016 and 2015, the Company has reduced the applicable
tax rate by 5%.
The Company applied the tax rate of 20% for the year ended December 31, 2016 and 2015.
The subsidiaries applied a tax rate of 25% for the year ended December 31, 2016 and 2015.
The company will submit the above corporate income tax computation in its income tax return
(“Surat Pemberitahuan Tahunan” or Annual Tax Return) for fiscal year 2016 that will be reported to
the tax office based on prevailing regulations. The amount of corporate income tax for the year
ended December 31, 2015 agreed with what was reported in the annual tax return.
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 to 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 letters 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 statements of profit or 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
Interconnection
underpayment
of
No. Tel. 59/KU000/COP-10000000/2015 to No. Tel. 68/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 appeal is still in process.
objection
VAT
the
on
of
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. TAXATION (continued)
e. Tax assessment (continued)
(i) The Company (continued)
In November 2014, the Company received SKPKBs as the result of the tax audit for fiscal
year 2011 from the Tax Authorities. Based on the letters, the Company received VAT
underpayment assessment for the tax period January to December 2011 amounting to Rp182.5
billion (including penalty of Rp60 billion) and corporate income tax underpayment assessment
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 statements 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 on VAT Interconnection assessment in 2011 on January 7, 2015 to
the Tax Authorities. Regarding the case, The Tax Authorities rejected the Company’s objection
through its decrees 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.
The Company received a letter from the Tax Authorities No. Pemb-00427/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. On April 20, 2016 the Company received assessment
letter for overpayment of Income Tax No. 00022/406/14/093/16 that determined the amount of
income tax overpayment for fiscal year 2014 amounting to Rp 51.5 billion.
On May 3, 2016 the Tax Authorities issued Field Tax Audit Notification Letter for tax period
January to December 2012. The Company has received SKPKBs as the result of the tax audit.
Based on the letters, the Company received corporate income tax underpayment assessment
amounting to Rp991.6 billion (including penalty of Rp321.6 billion), VAT underpayment
assessment amounting to Rp467 billion (including penalty of 153.5 billion), VAT underpayment
assessment on taxable services from outside customs territory amounting to Rp1.2 billion
(including penalty of Rp392 billion), VAT underpayment assessment on tax collected amounting
to Rp57 billion (including penalty of Rp18.5 billion). Tax Collection Letter (“STP”) for VAT
amounting to Rp37.5 billion, withholding tax article 21 underpayment assessment amounting
to Rp16.2 billion (including penalty of Rp5.3 billion), final withholding tax article 21
underpayment assessment amounting Rp1.2 billion (including penalty of Rp407 million),
withholding tax article 23 underpayment assessment amounting to Rp63.5 billion (including
penalty of Rp20.6 billion), withholding tax article 4 (2) underpayment assessment amounting to
Rp25 billion (including penalty of Rp8.1 billion) and withholding tax article 26 underpayment
assessment amounting to Rp197.6 billion (including penalty of Rp64 billion).
incoming
The Company has agreed regarding recalculation of
interconnection services amounting to Rp35 billion, withholding tax amounting to Rp613 million
and withholding tax article 26 amounting to Rp311.5 million that have been recorded in
consolidated statements of profit or loss and other comprehensive income. The company filed
an objection against the remaining unapproved parts on November 16, 2016. As of the date of
approval and authorization for the issuance of these consolidated financial statements, the
objection is still in process.
tax credit on
input
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. TAXATION (continued)
e. Tax assessment (continued)
(i) The Company (continued)
The Company received a letter from the Tax Authorities dated August 23, 2016 regarding Field
Tax Audit Notification for tax period January to December 2015. As of the date of approval and
authorization for the issuance of these consolidated financial statements, the audit process is
still ongoing.
(ii) Telkomsel
In December 2013, the Tax Court accepted Telkomsel’s appeal on the 2006 VAT and
withholding taxes totaling Rp116 billion. In February 2014, Telkomsel received the refund. On
July 3, 2015, in response to Telkomsel’s letter claiming for interest income related to favorable
2006 VAT and withholding tax verdicts, the Tax Authorities informed Telkomsel that the claim
cannot be granted since the Tax Authorities filed a request for judicial review to the Supreme
Court (“SC”). On August 19, 2016, Telkomsel received a notification from Tax Court that the
Tax Authorities filed a request for judicial review to SC for the VAT case amounting to Rp108
billion. The contra memorandum for judicial review was sent on September 14, 2016.
On April 21, 2010, the Tax Authorities filed a judicial review request to the Indonesian 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 Rp8.4 billion). In May 2010, Telkomsel filed a contra-appeal to the SC.
In July 2016, the case has been announced on SC Website in favor of the Tax Authorities.
Although Telkomsel has not received the official verdict from the Court, conservatively the tax
penalty of Rp8.4 billion has been recognized. The tax base of Rp421 billion shall not become
an additional tax expense as the nature of corporate income tax amount is creditable for
Telkomsel.
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.
In July 2016, conservatively, Telkomsel recognized the tax penalty of Rp15.7 billion as it has
similar legal substance with 2008 penalty of income tax case.
On May 24, 2012, Telkomsel filed an objection to the Tax Authorities for the 2010
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 and May 13, 2015, Telkomsel
received a refund for value added tax and amounting to Rp290.6 billion. On June 24, 2015,
The Tax Authorities filed a judicial review to the SC and on May 2, 2016, Telkomsel received a
notification from Tax Court regarding the judicial review. Subsequently, on May 27, 2016
Telkomsel filed a contra-appeal to the SC. As of the date of approval and authorization for
issuance of these financial statements, the judicial review is still in process.
72
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. TAXATION (continued)
e. Tax assessment (continued)
(ii) Telkomsel (continued)
On November 7, 2014, as a result of a tax audit by the Tax Authorities, Telkomsel received
assessment letters for underpayment of corporate income tax, VAT and withholding tax
amounting to Rp257.8 billion, Rp2.9 billion and Rp2.2 billion (including penalty of Rp85.3
billion), respectively. In December 2014, Telkomsel accepted the assessment of Rp7.8 billion
for the underpayment of corporate income tax, Rp1 billion for the underpayment of VAT and
Rp2.2 billion for the underpayment of the withholding tax (including penalty of Rp3.5 billion).
The accepted portion was charged to the 2014 statement of profit or loss and other
comprehensive income. In December 2014, Telkomsel paid the assessments and filed
objection letters to the Tax Authorities for the underpayment of corporate income tax of
Rp250 billion (including penalty of Rp81.1 billion) and VAT of Rp1.9 billion (including penalty
of Rp670 million). In November and December 2015, Telkomsel received the rejection letters
from the Tax Authorities for corporate income tax of Rp250 billion and VAT of Rp 1.4 billion.
The remaining amount of Rp250 million was charged to the 2015 statement of profit or loss
and other comprehensive income.
In August 2015, Telkomsel received a letter from the Tax Authorities requesting Telkomsel to
change the fiscal useful life of asset tower. Claim for tax refund of 2011 Corporate Income Tax
related to tower depreciation of Rp125.5 billion was reclassified to deferred tax liabilities,
Rp60 billion penalty was charged to the 2015 profit or loss.
On February 15, 2016, Telkomsel filed an appeal to the Tax Authorities for the 2011
underpayment of corporate income tax of Rp250 billion (including penalty of Rp81.1 billion).
Subsequently, on March 17, 2016, the Company also filed an appeal to the Tax Court for the
underpayment of VAT amounting Rp1.2 billion (including penalty of Rp392 million).
In December 2016, after the court hearing sessions ended, Telkomsel reviewed the corporate
income tax developments and resulted in adjustment of Rp18 billion. Therefore, the amount of
claim for tax refund reduce from Rp66 billion to Rp48 billion. As of the date of approval and
authorization for issuance of these financial statements, Telkomsel has not received the Tax
Court’s verdict.
On July 28, 2016, Telkomsel received the tax audit instruction letter for compliance of fiscal
year 2014. As of the date of approval and authorization for issuance of these financial
statements, the tax audit 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 juncto PMK No. 233/PMK.03/2015 juncto PMK No. 29/PMK.03/2016. In
accordance with the PMK, the Company is allowed to revalue its fixed assets for tax purposes and
will obtain lower income tax when the application of the revaluation is submitted to DGT during the
period between the effective date of PMK and December 31, 2016. The final income tax is
determined at a rate ranging from 3%-6% on the excess of the revalued amount of fixed assets
over its original net book value depending on the timing of submission of application to the DGT.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. TAXATION (continued)
f. Tax incentives (continued)
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 amounting to Rp750 billion.
Based on the PMK, the self-assessed revaluation amount should be evaluated 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,
the DGT may issue approval letter within 30 days after the receipt of complete application.
The Company has appointed KJPP to assess the fixed assets revaluation of the Company.
The Company submitted the completeness of fixed assets revaluation documents phase 1 to DGT
on September 29, 2016. On November 10, 2016, DGT issued approval regarding fixed assets
revaluation amounting to Rp7,078 billion with related final income tax amounting to Rp212 billion.
On December 15, 2016, the Company resubmitted the request regarding fixed assets revaluation
for tax purpose for the request proposed in 2016 that covered outdoor production equipments with
estimated increase of assets value amounting to Rp8,960 billion with related final income tax
amounting to Rp538 billion. As of the date of approval and authorization for issuance of these
financial statements, the Company is still waiting for the fixed assets revaluation report from KJPP.
The fixed assets revaluation for tax purpose resulting a deductible temporary difference that
originated from higher tax base of fixed assets compared to the assets' accounting book value. The
temporary difference creates deferred tax assets because there will be future economic benefits
that flow to the Company when the carrying amount of assets has been recovered.
In 2016, the Company recorded deferred tax assets amounting to Rp1,415 billion from the excess
of the revalued amount of fixed assets which has been approved by DGT over the previous tax
base net book value.
g. Deferred tax assets and liabilities
The details of the Group's deferred tax assets and liabilities are as follows:
(Charged)
credited to the
consolidated
statements of
profit or loss
(Charged) credited
to the consolidated
statements of other
comprehensive
income
December 31,
2015
(Charged)
credited to the
equity
December 31,
2016
102
(41 )
112
10
(142 )
(68 )
(27 )
825
34
12
871
844
126
-
-
-
-
-
126
-
-
-
-
126
-
-
-
-
-
-
-
-
-
-
-
-
563
388
209
75
69
1
1,305
(772 )
(11 )
(11 )
(794 )
511
The Company
Deferred tax assets:
Net periodic pension and other post-
employment benefits costs
Provision for impairment of receivable
Provisions for employee benefit
Deferred installation fee
Accrued expenses and provision for
inventory obsolescence
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
335
429
97
65
211
69
1,206
(1,597 )
(45 )
(23 )
(1,665 )
(459 )
74
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. TAXATION (continued)
g. Deferred tax assets and liabilities (continued)
The details of the Group's deferred tax assets and liabilities are as follows (continued):
Telkomsel
Deferred tax assets:
Provisions for employee benefits
Provision for impairment of receivables
Total deferred tax assets
Deferred tax liabilities:
Finance leases
Difference between accounting and tax
bases of and equipment property
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 of other subsidiaries - net
Deferred tax assets - net
(Charged)
credited to the
consolidated
statements of
profit or loss
(Charged)
credited to the
consolidated
statements of
other
comprehensive
income
December 31,
2015
(Charged)
credited to
the equity
December 31,
2016
349
138
487
(385 )
(1,395 )
(52 )
(1,832 )
(1,345 )
(306 )
(2,110 )
201
201
55
5
60
(164 )
913
4
753
813
14
1,286
50
435
74
-
74
-
-
-
-
74
5
79
3
129
-
-
-
-
-
-
-
-
-
-
4
4
478
143
621
(549 )
(482 )
(48 )
(1,079 )
(458 )
(287 )
(745 )
258
769
(Charged)
credited to
the
consolidated
statements
of profit or
loss
(Charged)
credited to the
consolidated
statements of
other
comprehensive
income
December 31,
2014
Reclassification
December 31,
2015
The Company
Deferred tax assets:
Provision for impairment of receivable
Net periodic pension and other post-employment
benefits costs
Accrued expenses and provision for inventory
obsolescence
Provisions for employee benefit
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
(41 )
3
135
25
(7 )
47
162
(139 )
24
(9 )
(124 )
38
16
9
0
25
350
(131 )
9
228
253
(59 )
233
107
470
330
76
72
72
22
1,042
(1,458 )
(69 )
(14 )
(1,541 )
(499 )
323
129
0
452
(2,044 )
(254 )
(61 )
(2,359 )
(1,907 )
(248 )
(2,654 )
95
75
-
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
26. TAXATION (continued)
g. Deferred tax assets and liabilities (continued)
As of December 31, 2016 and 2015, the aggregate amounts of temporary differences associated
with investments in subsidiaries and associated companies, for which deferred tax liabilities have
not been recognized were Rp34,568 billion and Rp28,295 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 can be reduce if actual future taxable income is lower than estimates.
h. Administration
From 2008 to 2016, 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
as amended by Governemnt Regulation No. 77/2013 and lastly by Government Regulation
No. 56/2015 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, 2016, 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 Ministry of Finance of the Republic of Indonesia has issued Regulation No. 85/PMK.03/2012
dated June 6, 2012 as amended by PMK No. 136-PMK.03/2012 dated August 16, 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 Ministry 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 as amended by PMK No. 16/PMK.010/2016 dated
February 3, 2016. The Company has withheld, deposited, and reported VAT, PPnBM and also
income tax article 22 in accordance with the Regulation.
27. 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 Rp19,352 billion and Rp15,489 billion by the weighted average number of shares
outstanding during the period totaling 98,638,501,532 shares and 98,176,527,553 shares after stock
split for the year ended December 31, 2016 and 2015, 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 Rp196.19 and Rp157.77 (in full amount) for the year ended
December 31, 2016 and 2015, respectively.
The Company does not have potentially dilutive financial investments as of December 31, 2016 and
2015.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
28. CASH DIVIDENDS AND GENERAL RESERVE
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.
Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 50 dated
April 22, 2016 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of
cash dividend and special cash dividend for 2015 amounting to Rp7,744 billion (Rp78.86 per share) and
Rp1,549 billion (Rp15.77 per share), respectively. On May 26, 2016, the Company paid the cash
dividend and special cash dividend totalling Rp9,293 billion.
On December 27, 2016, the Company had paid an interim dividend amounting to Rp1,920 billion or
totalling Rp19.38 per share.
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, 2016 and 2015
amounting to Rp15,337 billion, respectively.
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS
The details of pension and other post-employment benefit liabilities are as follows:
Prepaid pension benefit cost
The Company - funded
MDM
Infomedia
Total prepaid pension benefit cost
Pension benefit and other post-employment
benefit obligations
Pension benefit
The Company - unfunded
Telkomsel
Patrakom
Sub-total pension benefit
Net periodic post-employment health care
benefit
Other post-employment benefit
Obligation under the Labor Law
Pension benefit and other post-employment
benefit obligations
Notes
29a.i.a
29a.i.b
29a.ii
29b
29c
29d
2016
2015
197
1
1
199
2,507
1,193
0
3,700
1,592
502
332
6,126
1,329
2
0
1,331
2,500
803
-
3,303
118
497
253
4,171
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The breakdown of the net benefit expense recognized in the consolidated statements of profit or loss
and other comprehensive income is as follows:
Pension benefit cost
The Company - funded
The Company - unfunded
Telkomsel
MDM
Infomedia
Patrakom
Total pension benefit cost
Net periodic post-employment health care
benefit cost
Other post-employment benefit cost
Obligation under the Labor Law
Total
Notes
29a.i.a
29a.i.b
29a.ii
23
23,29b
23,29c
23,29d
2016
2015
608
279
181
0
0
0
1,068
163
48
82
1,361
12
251
168
1
0
-
432
216
47
53
748
Defined benefit plan actuarial gain (losses)
Notes
2016
2015
The Company - funded
The Company - unfunded
Telkomsel
Infomedia
Patrakom
MDM
Post-employment health care benefit
Other post-employment benefit
Obligation under the Labor Law
Sub-total
Deferred tax effect at the applicable tax rates
Defined benefit plan actuarial gain (losses) - net
29a.i.a
29a.i.b
29a.ii
29b
29c
29d
(492 )
(119 )
(292 )
0
0
(1 )
(1,309 )
(20 )
(33 )
(2,266 )
208
(2,058 )
186
(187 )
(15 )
1
0
0
540
(11 )
(20 )
494
12
506
a. Pension benefit costs
i. The Company
a. Funded pension plan
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 governed by the pension laws in Indonesia and 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, 2016 and 2015 amounted to Rpnil,
respectively.
78
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
a. Funded pension plan (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 as of December 31, 2016 and 2015, and
for the years ended December 31, 2016 and 2015, on the defined benefit pension plan:
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 amendments
Interest costs
Pension plan participants’ contributions
Actuarial (gain) losses
Pension benefits paid
Settlement
2016
2015
16,505
17,402
363
245
1,444
44
1,680
(1,432 )
-
218
(55 )
1,445
45
(1,666 )
(808 )
(76 )
Projected pension benefit obligations at end of year
18,849
16,505
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
Pension benefits paid
Plan administration cost
Fair value of pension plan assets at end of period
Funded status
Effect of asset ceiling
Prepaid pension benefit cost
2016
2015
17,834
1,458
1,188
44
(1,432 )
(46 )
19,046
197
-
197
18,929
1,576
(1,837 )
45
(808 )
(71 )
17,834
1,329
-
1,329
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
a. Funded pension plan (continued)
As of December 31, 2016 and 2015, plan assets consists of:
Cash and cash equivalents
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
Mutual funds
Non-public equity:
Direct placement
Property
Others
2016
Quoted in
2015
Quoted in
active market Unquoted
active market Unquoted
1,064
1,039
1,206
536
577
130
216
62
71
361
1,296
-
7,978
30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,817
-
-
174
188
301
1,335
1,153
953
637
573
163
183
45
29
240
1,120
-
7,257
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,587
-
-
163
156
240
Total
14,566
4,480
13,688
4,146
Pension plan assets also include Series B shares issued by the Company with fair values
totalling Rp395 billion and Rp445 billion, representing 2.07% and 2.49% of total plan assets
as of December 31, 2016 and 2015, respectively, and bonds issued by the Company with
fair value totalling Rp311 billion and Rp464 billion representing 1.63% and 2.60% of total
assets as of December 31, 2016 and 2015, respectively.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
a. Funded pension plan (continued)
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 Rp2,600 billion and (Rp332 billion) for the years ended December 31, 2016
and 2015, 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%. Based on Dapen’s financial statement as of December
31, 2016, Dapen’s FSR is above 105%. Therefore, the Company does not expect to contribute
to the defined benefit pension plan in 2016.
Based on the Company’s 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 settlements 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.
Based on the Company’s policy issued on June 24, 2016 regarding Pension Regulation by
Dana Pensiun Telkom, widow/widower or the children of participants who enrolled before
April 20, 1992, will receive increase in monthly pension benefits from 60% to 75% of pension
benefits received by the pensioners which effective starting from January 1, 2016. In addition,
the Company provide other benefits to increase the pensioner’s welfare which only provided
in 2016. The Company provide other benefit of Rp6 million to monthly pension beneficiaries
who retired before end of June 2002 and other benefit of Rp3 million to monthly pension
beneficiaries who retired starting from the end of June 2002 until the end of May 2016.
The movements of the prepaid pension benefit cost during the years ended December 31,
2016 and 2015 are as follows:
Prepaid pension benefit cost at beginning of year
Net periodic pension benefit cost
Actuarial gain (losses) recognized in OCI
Asset ceiling recognized in OCI
Return on plan assets
(excluding amount included in net interest expense)
Prepaid pension benefit cost at end of year
2016
2015
1,329
(640 )
(1,680 )
-
1,188
197
1,170
(27 )
1,666
357
(1,837 )
1,329
81
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
a. Funded pension plan (continued)
The components of net periodic cost for the years ended December 31, 2016 and 2015 are
as follows:
Service costs
Past service cost - plan amendments
Plan administration cost
Net interest cost
Settlement
Net periodic pension benefit cost
Amount charged to subsidiaries under
contractual agreements
Net periodic pension benefit cost
Amounts recognized in OCI are as follows:
Actuarial (gain) losses recognized during
the year due to:
Experience adjustments
Changes in demographic assumptions
Changes in financial assumptions
Effect of asset ceiling
Return on plan assets (excluding amount included in net
interest expense)
Net
2016
2015
363
245
46
(14 )
-
640
(32 )
608
218
(55 )
71
(131 )
(76 )
27
(15 )
12
2016
2015
70
140
1,470
-
(1,188 )
492
(991 )
137
(812 )
(357 )
1,837
(186 )
The actuarial valuation for the defined benefit pension plan was performed, based on the
measurement date as of December 31, 2016 and 2015, with reports dated February 22, 2017
and February 25, 2016, 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, 2016 and 2015 are as follows:
Discount rate
Rate of compensation increases
Indonesian mortality table
b. Unfunded pension plan
2016
2015
8.00%
8.00%
2011
9.00%
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 the participants’ salaries and amounted to Rp9 billion and
Rp7 billion for the years ended December 31, 2016 and 2015, respectively.
82
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
b. Unfunded pension plan (continued)
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 since
April 1, 2012, whereby the employee is required to file a request for MPP and if the employee
does not file the request, such employee is required to work until the retirement date.
The following table presents the changes of the unfunded projected pension benefit
obligations of MPS and MPP for the years ended December 31, 2016 and 2015:
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 period
2016
2015
2,500
64
215
119
(391 )
2,507
2,326
60
191
187
(264 )
2,500
The components of total periodic pension benefit cost for the years ended December 31,
2016 and 2015 are as follows:
Service costs
Net interest cost
Total
Amounts recognized in OCI are as follows:
Actuarial (gain) losses recognized during
the year due to:
Experience adjustments
Changes in demographic assumptions
Changes in financial assumptions
Net
83
2016
2015
64
215
279
60
191
251
2016
2015
(9 )
30
98
119
(30 )
50
167
187
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
b. Unfunded pension plan (continued)
The actuarial valuation for the defined benefit pension plan was performed, based on the
measurement date as of December 31, 2016 and 2015, with reports dated February 22,
2017 and February 25, 2016, respectively, by TWP independent actuary in association with
WTW. The principal actuarial assumptions used by the independent actuary for the years
ended December 31, 2016 and 2015 are as follows:
Discount rate
Rate of compensation increases
Indonesian mortality table
ii Telkomsel
2016
2015
7.75% - 8.00%
6.10% - 8.00%
2011
9.00%
varies
2011
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 Rp83 billion and Rp192 billion for the years
ended December 31, 2016 and 2015, respectively.
The following table presents the changes in projected pension benefit obligation, changes in
pension benefit plan assets, funded status of the pension plan and net amount recognized in the
consolidated statement of financial position for the years ended December 31, 2016 and 2015,
on Telkomsel’s defined benefit pension plan:
2016
2015
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 (gain) losses recognized in OCI
Benefits paid
Projected pension benefit obligation at end of year
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
Benefits paid
Fair value of plan assets at end of year
Funded status
Provision for pension benefit cost
1,415
107
130
392
(10 )
2,034
612
56
100
83
(10 )
841
(1,193 )
(1,193 )
1,281
101
106
(64 )
(9 )
1,415
469
39
(79 )
192
(9 )
612
(803 )
(803 )
84
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
(ii) Telkomsel (continued)
The movements of the provision for pension benefit cost for the years ended December 31,
2016 and 2015:
2016
2015
Provision for pension benefit cost at beginning of year
Periodic pension benefit cost
Actuarial (gain) losses recognized in OCI
Return on plan assets (excluding amount included in net
interest expense)
Employer contributions
Provision for pension benefit cost at end of year
803
181
392
(100 )
(83 )
1,193
812
168
(64 )
79
(192 )
803
The components of the periodic pension benefit cost for the years ended December 31, 2016
and 2015 are as follows:
Service costs
Net interest cost
Total periodic pension benefit cost
Amounts recognized in OCI are as follows:
2016
2015
107
74
181
2016
2015
Actuarial (gain) losses recognized during
the year due to:
Experience adjustments
Changes in financial assumptions
Return on plan assets (excluding amount included in net
interest expense)
Net
32
360
(100 )
292
101
67
168
(20 )
(44 )
79
15
The actuarial valuation for the defined benefit pension plan was performed, based on the
measurement date as of December 31, 2016 and 2015, with reports dated February 7, 2017
and February 12, 2016, respectively, by TWP, an independent actuary in association with WTW.
The principal actuarial assumptions used by the independent actuary as of December 31, 2016
and 2015, are as follows:
Discount rate
Rate of compensation increases
Indonesian mortality table
2016
2015
8.25%
8.00%
2011
9.25%
8.00%
2011
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. 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 its provided to employees hired
with permanent status on or after November 1, 1995 or employees with terms of service less than
20 years at the time of retirement. The Company’s contribution to the plan amounted to Rpnil for
the years ended December 31, 2016 and 2015, respectively.
The following table presents the changes in projected post-employment health care benefit
provision, change in post-employment health care benefit plan assets, funded status of the post-
employment health care benefit plan, and net amount recognized in the Company’s consolidated
statement of financial position as of December 31, 2016 and 2015 and for the years ended
December 31, 2016 and 2015:
2016
2015
Changes in projected post-employment health care
benefit provision
Projected post-employment health care benefit obligation
at beginning of year
Charged to profit or loss:
Service costs
Net interest cost
Actuarial (gain) losses
Post-employment health care benefits paid
Projected post-employment health care benefit provision
at end of year
Changes in post-employment health care benefit plan
assets
Fair value of plan assets at beginning of year
Interest income
Return on plan assets (excluding amount included in
net interest expense)
Post-employment health care benefits paid
Administrative expense paid
Fair value of plan assets at end of year
Funded status
Provision for post-employment health care benefit
10,942
11,505
9
994
1,828
(416 )
49
961
(1,187 )
(386 )
13,357
10,942
10,824
982
519
(416 )
(144 )
11,765
(1,592 )
(1,592 )
11,064
924
(647 )
(386 )
(131 )
10,824
(118 )
(118 )
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Post-employment health care benefits provisions (continued)
As of December 31, 2016 and 2015, plan assets consists of:
Cash and cash equivalents
Equity instruments:
Manufacturing & consumer
Finance industries
Construction
Infrastructure and telecommunication
Wholesale
Mining
Other Industries:
Services
Agriculture
Biotechnology and Pharma Industry
Others
Equity-based mutual funds
Fixed income instruments:
Fixed income mutual funds
Unlisted shares:
Private placement
Others
Total
2016
2015
Quoted in
active market
Unquoted
Quoted in
active market
Unquoted
894
754
540
351
245
101
27
17
44
6
2
1,311
7,241
-
-
11,533
-
-
-
-
-
-
-
-
-
-
-
-
-
232
-
232
811
571
566
301
211
70
12
33
23
6
3
1,129
6,837
-
-
10,573
-
-
-
-
-
-
-
-
-
-
-
-
-
213
38
251
Yakes plan assets also include Series B shares issued by the Company with fair value totalling
Rp217 billion and Rp174 billion, representing 1.84% and 1.61% of total assets as of December 31,
2016 and 2015, respectively.
The expected return is determined based on market expectation for the returns over the entire life
of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets
was Rp1,357 billion and Rp147 billion for the years ended December 31, 2016 and 2015,
respectively.
The movements of the provision for projected post-employment health care benefit obligations for
the years ended December 31, 2016 and 2015 are as follows:
Projected post-employment health care benefit obligations
at beginning of year
Net periodic post-employment health care benefit
Actuarial losses (gain) recognized in OCI
Return on plan assets (after deducting the value which is
included in net interest expense)
Projected post-employment health care benefit
obligations at end of year
2016
2015
118
165
1,828
(519 )
1,592
441
217
(1,187 )
647
118
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Post-employment health care benefits provisions (continued)
The components of net periodic post-employment health care benefit cost for the years ended
December 31, 2016 and 2015 are as follows:
Service costs
Plan administration cost
Net interest cost
Periodic post-employment health care benefit cost
Amount charged to subsidiaries under contractual agreement
Net periodic post-employment health care benefit cost
less cost charged to subsidiaries
2016
2015
9
144
12
165
(2 )
163
49
131
37
217
(1 )
216
Amounts recognized in OCI are as follows:
Actuarial (gain) losses recognized during
the year due to:
Experience adjustments
Changes in demographic assumptions
Changes in financial assumptions
Return on plan assets (excluding amount included in net
interest expense)
Net
2016
2015
26
66
1,736
(519 )
1,309
(53 )
92
(1,226 )
647
(540 )
The actuarial valuation for the post-employment health care benefits was performed based on
measurement date as of December 31, 2016 and 2015 with reports dated February 22, 2017 and
February 25, 2016, respectively, was performed by TWP, an independent actuary in association
with WTW. The principal actuarial assumptions used by the independent actuary as of December
31, 2016 and 2015 are as follows:
Discount rate
Health care costs trend rate assumed for the next year
Ultimate health care costs trend rate
Year that the rate reaches the ultimate trend rate
Indonesian mortality table
c. Other post-employment benefits provisions
2016
2015
8,50%
7,00%
7,00%
2017
2011
9.25%
7.00%
7.00%
2016
2011
The Company provides other post-employment 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”).
88
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
c. Other post-employment benefits provisions (continued)
The movements in the projected other post-employment benefit obligations for the years ended
December 31, 2016 and 2015 are as follows:
Unfunded projected benefit obligations
at beginning of year
Charged to profit or loss:
Service costs
Net interest cost
Actuarial losses recognized in OCI
Benefits paid by employer
Provision for other post-employment benefits
2016
2015
497
7
41
20
(63 )
502
488
8
39
11
(49 )
497
The components of the projected other post-employment benefit cost for the years ended December
31, 2016 and 2015 are as follows:
Service costs
Net interest cost
Total
Actuarial (gain) losses recognized during
the year due to:
Experience adjustments
Changes in demographic assumptions
Changes in financial assumptions
Net
2016
2015
7
41
48
2016
2015
2
0
18
20
8
39
47
20
(0 )
(9 )
11
The actuarial valuation for the other post-employment benefits was performed based on the
measurement date as of December 31, 2016 and 2015, with reports dated February 22, 2017 and
February 25, 2016, respectively by TWP, an independent actuary in association with WTW.
The principal actuarial assumptions used by the independent actuary as of December 31, 2016 and
2015 are as follows:
Discount rate
Indonesian mortality table
d. Obligation under the Labor Law
2016
2015
7,75%
2011
9.00%
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, 2016 and 2015 amounted to Rp332 billion and Rp253
billion, respectively. The related employee benefits cost charged to expense amounted to Rp82
billion and Rp53 billion for the years ended December 31, 2016 and 2015, respectively (Note 23).
The
and
in OCI
Rp20 billion for the years ended December 31, 2016 and 2015, respectively.
recognized
to Rp33
amounted
actuarial
losses
billion
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
e. Maturity Profile of Defined Benefit Obligation (“DBO”)
The timing of benefits payments and weighted average duration of DBO for 2016 are as follows
(in billions of Rupiah):
Expected Benefits Payment
The Company
Funded
Unfunded Telkomsel
Post-employment
health care
benefits
Other post-
employment
benefits
16,888
20,052
17,289
11,827
2,872
238
9
0
2,914
263
29
5
-
-
-
-
1,653
6,257
5,758
936
-
-
-
-
6,273
8,401
8,648
6,711
2,986
245
1
0
578
139
47
3
-
-
-
-
9.15 years 4.33 years 11.33 years
13.81 years
3.62 years
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
Weighted average
duration of DBO
f. Sensitivity Analysis
1% change in discount rate and rate of salary would have effect on DBO, as follows:
Discount Rate
Rate of Compensation
1% Increase
1% Decrease
Increase (decrease) in amounts
Sensitivity
Funded
Unfunded
Telkomsel
Post-employment health care
benefits
Other post-employment benefits
(1,579 )
(68 )
(108 )
(1,544
)
(16 )
1% Decrease
1% Increase
Increase (decrease) in amounts
(397 )
384
(70 )
70
(108 )
115
1,860
73
116
1,882
18
2,034
-
(1,687 )
-
The sensitivity analysis 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 calculating the sensitivity analysis
from the previous period.
30. LSA PROVISIONS
Telkomsel and Patrakom provide certain cash awards or certain number of days leave benefits to its
employees based on the employees’ length of service requirements, including LSA and Long Service
Leave (“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 which was determined based on an actuarial valuation
using the Projected Unit Credit method, amounted to Rp613 billion and Rp501 billion as of
December 31, 2016 and 2015, respectively. The related benefit costs charged to expense amounted to
Rp237 billion and Rp152 billion for the years ended December 31, 2016 and 2015, respectively
(Note 23).
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY 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
Nature of accounts/transactions
Internet and data service revenues, other
telecommunication service revenues, finance
income, finance costs, and investment in financial
instruments
State-owned enterprises
Entity under common control
Internet and data service revenues, other
Indosat
Entity under common control
Interconnection revenues, leased lines revenues,
telecommunication services revenues, operating
expenses and purchase of property and equipment
PT Aplikanusa Lintasarta
Entity under common control
(“Lintasarta”)
Indosat Mega Media
PT Perusahaan Listrik Negara
Entity under common control
Entity under common control
(“PLN”)
satellite transponder usage revenues,
interconnection expenses, telecommunication
facilities usage expenses, operating and
maintenance expenses, usage of data
communication network system expenses
Interconnection revenues, network service revenues,
leased lines expenses, and usage of communication
network system expenses
Network service revenues
Electricity expenses, finance income, finance costs,
investment in financial instrument
PT Pertamina (Persero)
Entity under common control
Internet and data service revenues, other
(“Pertamina”)
telecommunication service revenues
PT Kereta Api Indonesia (“KAI”) Entity under common control
Internet and data service revenues, other
PT Pegadaian
Entity under common control
Internet and data service revenues, other
telecommunication service revenues
telecommunication service revenues
PT Garuda Indonesia Tbk
Entity under common control
Internet and data service revenues, other
PT Indonesia Comnet Plus
Entity under common control
Internet and data service revenues, other
telecommunication service revenues
(“ICON Plus”)
telecommunication service revenues, interconnection
revenues, network revenues and interconnection
expenses
PT Asuransi Jasa Indonesia
Entity under common control
Satellite insurance expenses and vehicle insurance
(“Jasindo”)
PT Adhi Karya Tbk
(“Adhi Karya”)
PT Waskita Karya Tbk
(“Waskita”)
INTI
LEN
Entity under common control
Purchase of materials and construction services
expenses
Entity under common control
Purchase of materials and construction services
Entity under common control
Purchase of property and equipment and
construction services
Entity under common control
Purchase of property and equipment and
construction services
State-owned banks
BNI
Entity under common control
Entity under common control
Finance income and finance costs
Internet and data service revenues, other
Bank Mandiri
Entity under common control
Internet and data service revenues, other
telecommunication service revenues, finance income
and finance costs
BRI
BTN
telecommunication service revenues, finance income
and finance costs
Entity under common control
Internet and data service revenues, other
telecommunication service revenues, finance income
and finance costs
Entity under common control
Internet and data service revenues, other
telecommunication service revenues, finance income
and finance costs
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. 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
PT Bank Syariah Mandiri
(“BSM”)
PT Bank BRI Syariah
(“BRI Syariah”)
Nature of relationships parties
Entity under common control
Nature of accounts/transactions
Internet and data service revenues, other
Entity under common control
Internet and data service revenues, other
telecommunication service revenues, and finance
costs
telecommunication service revenues, and finance
costs
Bahana
Sarana Multi Infrastruktur
CSM
Entity under common control
Entity under common control
Associated company
Available-for-sale financial assets, bonds and notes
Finance costs
Satelite transponder usage revenues, network
Indonusa
Associated company
service revenues and transmission lease expenses
Network service revenues and data communication
expenses
PT Poin Multi Media
Nusantara (“POIN”)
Associated company
Purchase of handset
Yakes
Koperasi Pegawai Telkom
Other related entities
Other related entities
(“Kopegtel”)
PT Sandhy Putra Makmur
Other related entities
(“SPM”)
Medical expenses
Purchase of property and equipment construction
and installation services, leases of buildings
expenses, lease of vehicles expenses, purchases of
vehicles, and purchases of materials and
construction service, maintenance and cleaning
service expenses, and RSA revenues
Leases of buildings expenses, leases of vehicles
expenses, purchase of materials and construction
services, utilities of maintenance and cleaning
services
Koperasi Pegawai Telkomsel
Other related entities
Internet and data service revenues, other
(“Kisel”)
PT Graha Informatika
Other related entities
Nusantara (“Gratika”)
PT Pembangunan
Other related entities
Telekomunikasi Indonesia
(“Bangtelindo”)
telecommunication service revenues, leases of
vehicles expenses, printing and distribution of
customer bills expenses, collection fee, other
services fee, distribution of SIM cards and pulse
reload voucher and purchase of property and
equipment
Interconnection revenues, network service revenues,
installation expenses, maintenance expenses, and
purchase of property and equipment
Purchase of property and equipment
Directors and commissioners Key management personnel
Honorarium and facilities
The outstanding balances of trade receivables and payables at year-end are unsecured and
interest free and settlement occurs in cash. There have been no guarantees provided or received for any
related party receivables or payables. In 2016, the Group recorded impairment of receivables from related
parties of Rp181 billion. This assessment is undertaken each financial year through examining the current
status of existing receivables and historical collection experience.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties
The following are significant transactions with related parties:
2016
2015
Amount
% of total
revenues
Amount
% of total
revenues
REVENUES
Majority Stockholder
Government
Entities under common control
Indosat
BRI
Bank Mandiri
BNI
BTN
Lintasarta
Pegadaian
Garuda
Pertamina
KAI
ICON Plus
Others
Sub-total
Other related entities
Yakes
Gratika
Others
Sub-total
Associated companies
Indonusa
Telin Malaysia
CSM
Others
Sub-total
Total
EXPENSES
Entities under common control
PLN
Indosat
Jasindo
Pos Indonesia
Others
Sub-total
Associated companies
POIN
Indonusa
Others
Sub-total
207
2,167
181
161
136
107
99
93
75
64
68
56
451
3,658
153
42
58
253
105
35
32
26
198
4,316
0.18
1.86
0.16
0.14
0.12
0.09
0.09
0.08
0.06
0.06
0.06
0.05
0.38
3.15
0.13
0.04
0.05
0.22
0.09
0.03
0.03
0.02
0.17
3.72
206
1,020
188
151
126
41
82
89
77
99
90
63
251
2,277
18
32
8
58
60
-
34
9
103
2,644
0.20
1.00
0.18
0.15
0.12
0.04
0.08
0.09
0.08
0.10
0.09
0.06
0.25
2.24
0.02
0.03
0.01
0.06
0.06
-
0.03
0.01
0.10
2.60
2016
2015
Amount
% of total
expenses
Amount
% of total
expenses
1.38
1.25
0.35
0.06
0.07
3.11
1.94
0.19
-
2.13
738
977
256
-
32
2,003
1,485
-
9
1,494
1.05
1.39
0.37
-
0.05
2.86
2.13
-
0.01
2.14
1,037
939
267
49
51
2,343
1,459
145
-
1,604
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
The following are significant transactions with related parties (continued):
EXPENSES (continued)
Other related entities
Kisel
Kopegtel
Yakes
Others
Sub-total
Others
Total
FINANCE INCOME
Majority stockholder
Government
Entity under common control
State-owned banks
Others
Total
FINANCE COSTS
Majority stockholder
Government
Entity under common control
State-owned banks
Total
PURCHASES OF PROPERTY
AND EQUIPMENTS (Note 9)
Entity under common control
INTI
LEN
Adhi Karya
Sub-total
Other related entities
Kopegtel
Bangtelindo
SPM
Kisel
Gratika
Sub-total
Others
Total
2016
Amount
% of total
expenses
2015
Amount
% of total
expenses
771
533
-
140
1,444
160
5,551
2016
1.02
0.71
-
0.18
1.91
0.21
7.36
748
460
174
31
1,413
-
4,910
2015
1.07
0.66
0.25
0.04
2.02
-
7.02
Amount
% of total
finance income
Amount
% of total
finance income
0.12
52.16
0.29
52.57
2
895
5
902
2016
0.64
58.99
0.43
60.06
9
830
6
845
2015
Amount
% of total
finance costs
Amount
% of total
finance costs
64
1,228
1,292
2016
2.28
43.72
46.00
76
1,061
1,137
2015
3.06
42.77
45.83
Amount
% of total
purchases
Amount
% of total
purchases
1.29
0.39
0.13
1.81
0.68
0.29
0.25
0.23
0.09
1.54
0.07
3.42
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
374
114
39
527
198
84
73
66
25
446
20
993
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
Presented below are balances of accounts with related parties (continued):
DISTRIBUTION OF SIM CARD AND
VOUCHER
Other related entities
Kisel
Gratika
Tiphone
Total
a. Cash and cash equivalents
(Note 3)
b.
Other current financial assets
(Note 4)
c. Trade receivables - net
(Note 5)
d. Advances and prepaid expenses
(Note 7)
e. Advances and other non -
current assets (Note 10)
f. Trade payables (Note 12)
Entities under common control
INTI
Indosat
LEN
Adhi Karya
State-owned enterprises
Sub-total
Other related entities
Total
g. Accrued expenses (Note 13)
Majority stockholder
Government
Entities under common control
State-owned enterprises
State-owned banks
Subtotal
Other related entities
Kisel
Others
Total
h. Advances from customers and
suppliers
Majority stockholder
Government
Entities under common control
PLN
Total
2016
2015
Amount
% of total
revenues
Amount
% of total
revenues
4,600
408
3,441
8,449
2016
3.95
0.35
2.96
7.26
3,866
384
-
4,250
2015
3.77
0.37
-
4.14
Amount
% of total assets
Amount
% of total assets
17,477
9.73
15,028
1,204
894
93
310
2016
0.67
0.50
0.05
0.17
2,555
1,104
15
6
2015
9.04
1,54
0.66
0.01
0.00
Amount
% of total
liabilities
Amount
% of total
liabilities
0.84
0.37
0.18
0.11
0.08
1.58
0.50
2.08
0.02
0.17
0.07
0.24
0.16
0.01
0.43
0.03
0.02
0.05
443
160
9
-
89
701
1,374
2,075
16
114
68
182
188
-
386
19
-
19
0.61
0.22
0.01
-
0.12
0.96
1.89
2.85
0.02
0.16
0.09
0.25
0.26
-
0.53
0.03
-
0.03
625
275
137
81
60
1,178
369
1,547
12
127
52
179
118
5
314
19
12
31
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
b. Transactions with related parties (continued)
Presented below are balances of accounts with related parties (continued):
2016
% of total
liabilities
Amount
2015
% of total
liabilities
Amount
i. Short-term bank loans (Note 15)
j. Two-step loans (Note 16a)
k. Long-term bank loans - net
(Note 16c)
l. Other borrowing (Note 16d)
143
1,292
6,325
697
0.19
1.74
8.54
0.94
25
1,520
7,427
-
0.03
2.09
10.21
-
c. Significant agreements with related parties
i. The Government
The Company obtained two-step loans from the Government (Note 16a).
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”.
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.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
31. RELATED PARTY TRANSACTIONS (continued)
c. Significant agreements with related parties (continued)
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.
d. Key management personnel remuneration
Key management personnels consist of the Boards of Commissioners and Directors of the
Company.
The Company 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:
2016
2015
Amount
% of total
expenses
Amount
% of total
expenses
Board of Directors
Board of Commissioners
427
121
0.57
0.16
168
64
0.24
0.09
32. 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.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
32. OPERATING SEGMENT
Segment revenues and expenses include transactions between operating segments and are accounted
at prices that management believes represent market prices.
Corporate
Home
Personal
Others
Total before
elimination
Elimination
Total
consolidated
2016
Segment results
Revenues
External revenues
Inter-segment revenues
Total segment revenues
Expenses
External expenses
Inter-segment expenses
Total segment expenses
Segment results
Other information
Capital expenditures
Depreciation and
amortization
Provision recognized in
current period
Segment results
Revenues
External revenues
Inter-segment revenues
Total segment revenues
Expenses
External expenses
Inter-segment expenses
Total segment expenses
Segment results
Other information
Capital expenditures
Depreciation and
amortization
Provision recognized in
current period
24,177
32,675
56,852
(26,014 )
(22,331 )
(48,345 )
8,507
7,803
5,077
12,880
(10,201 )
(2,375 )
(12,576 )
304
83,990
2,724
86,714
(38,800 )
(12,503 )
(51,303 )
35,411
363
2,395
2,758
(2,123 )
(426 )
(2,549 )
209
116,333
42,871
159,204
(77,138 )
(37,635 )
(114,773 )
44,431
(11,419 )
(4,437 )
(12,565 )
(778 )
(29,199 )
(4,148 )
(1,711 )
(12,549 )
(124 )
(18,532 )
(87 )
(424 )
(222 )
(10 )
(743 )
-
(42,871 )
(42,871 )
-
37,635
37,635
(5,236 )
-
-
-
116,333
-
116,333
(77,138 )
-
(77,138 )
39,195
(29,199 )
(18,532 )
(743 )
Corporate
Home
Personal
Others
Total before
elimination
Elimination
Total
consolidated
2015
21,072
14,347
35,419
(20,239 )
(8,066 )
(28,305 )
7,114
7,319
4,352
11,671
(6,705 )
(4,706 )
(11,411 )
260
73,766
2,365
76,131
(41,130 )
(10,173 )
(51,303 )
24,828
313
1,943
2,256
(1,978 )
(62 )
(2,040 )
216
102,470
23,007
125,477
(70,052 )
(23,007 )
(93,059 )
32,418
(10,007 )
(4,172 )
(11,321 )
(901 )
(26,401 )
(2,708 )
(1,203 )
(14,531 )
(92 )
(18,534 )
(560 )
(297 )
(148 )
(5 )
(1,010 )
-
(23,007 )
(23,007 )
-
23,007
23,007
-
-
-
-
102,470
-
102,470
(70,052 )
-
(70,052 )
32,418
(26,401 )
(18,534 )
(1,010 )
Geographic information:
External revenues
Indonesia
Foreign countries
Total
2016
2015
114,093
2,240
116,333
100,456
2,014
102,470
The revenue information above is based on the location of the customers.
Non-current operating assets
Indonesia
Foreign countries
Total
2016
2015
115,216
2,371
117,587
105,361
1,395
106,756
Non-current operating assets for this purpose consist of property and equipment and intangible assets.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. 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 MoCI concerning “Mechanism to
Determine Tariff of Basic Telephony Services Connected through Fixed Line Network”. This Decree
replaced the previous Decree No. 09/PER/M.KOMINFO/02/2006.
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.
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.
99
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
33. TELECOMMUNICATIONS SERVICE TARIFFS (continued)
c.
Interconnection tariffs (continued)
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
c. 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.
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS
a. Capital expenditures
As of December 31, 2016, capital expenditures committed under the contractual arrangements,
principally relating to procurement and installation of data, internet and information technology,
cellular, transmission equipment and cable network are as follows:
Currencies
Rupiah
U.S. dollar
Euro
Total
Amounts in foreign
currencies (in millions)
Equivalent in Rupiah
341
0.16
7,210
4,600
2
11,812
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
The above balance includes the following significant agreements:
Initial date of
agreement
Significant provisions of the agreement
November 14, 2013 Procurement and installation agreement of WIFI CISCO
(i) The Company
Contracting parties
The Company and PT Cisco
Technologies Indonesia
The Company and Thales Alenia
Space France
The Company and PT Huawei Tech
Investment
The Company, Telkom Malaysia
Berhad, TII, Alcatel-Lucent Submarine
Networks and NEC Corporation
July 14, 2014
October 23, 2014
January 30, 2015
The Company and PT ZTE Indonesia
August 28, 2015
The Company and PT Datacomm
Diangraha
November 20, 2015
The Company and PT Sarana Global
Indonesia
December 31, 2015
The Company and PT Industri
Telekomunikasi Indonesia
December 29, 2015
The Company and PT Len Industri
(Persero)
December 29, 2015
Procurement of Telkom-3 Substitution (T3S) Satellite
System
Procurement and installation of Access Point Indonesia
WIFI Platform Huawei
Procurement and installation of Southeast Asia - Middle
East - Western Europe 5 Cable System
(SEA - ME - WE 5)
Procurement and installation agreement of MSAN
modernization for acceleration of the disposal of copper
wire - Platform ZTE
Procurement and installation agreement for Metro Ethernet
Platform ALU
Procurement and installation agreement of Sistem
Komunikasi Kabel Laut (“SKKL”) Sibolga-Nias, Batam-
Tanjung Balai Karimun, Larantuka-Kabalahi-Atambua
Renewal agreement of procurement and installation
agreement for the modernization of copper cable network
through optimalization of asset copper cable network
through Trade In/Trade Off method
Renewal agreement of procurement and installation
agreement for the modernization of copper cable network
through optimalization of asset copper cable network
through Trade In/Trade Off method
The Company and Space
System/Loral, LLC
February 29, 2016 Procurement of Telkom 4 Satellite System
The Company and NEC Corporation
May 12, 2016
Procurement and installation agreement of Sistem
Komunikasi Kabel Laut (“SKKL”) Indonesia Global Gateway
The Company and PT Mastersystem
Infotama
The Company and Space Exploration
Technologies Corp
October 24, 2016 Procurement Agreement of Ekspand IP Backbone 2016
November 3, 2016 Launch services agreement of Telkom 4 Satellite System
The Company and PT Huawei Tech
Investment
November 25, 2016
Procurement and installation agreement for DWDM
Platform Huawei
The Company and PT ZTE Indonesia December 15, 2016 Procurement agreement for STB Platform ZTE
The Company and PT ZTE Indonesia December 15, 2016 Procurement agreement for ONT Retail Platform ZTE
The Company, PT Sigma Cipta
Caraka, PT Graha Sarana Duta and
PT Huawei Tech Investment
The Company and PT Lancs Arche
Consumma
December 29, 2016 Agreement establishing IOC-N
December 30, 2016
Procurement and installation agreement for reengeenering
and expansion network DWDM capacity Platform Coriant
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
a. Capital expenditures (continued)
The above balance includes the following significant agreements:
(ii) Telkomsel
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
Initial date of
agreement
Significant provisions of the agreement
April 17, 2008
The combined 2G and 3G CS Core Network Rollout
Agreements
April 17, 2008
Technical Service Agreement (TSA) for combined 2G and
3G CS Core Network
March and June
2009
2G BSS and 3G UTRAN Rollout agreement for the
provision of 2G GSM BSS and 3G UMTS Radio Access
Network
Telkomsel, PT Dimension Data
Indonesia and PT Huawei
February 3, 2010
Maintenance and Procurement of Equipment and Related
Service Agreement for Next Generation Convergence
Core Transport Rollout and Technical Support
Telkomsel, Amdocs Software Solutions
Limited Liability Company and PT
Application Solutions
February 8, 2010
Online Charging System (“OCS”) and Service Control
Points (“SCP”) System Solution Development agreement
Telkomsel and PT Application Solutions February 8, 2010
Technical Support Agreement to provide technical
support services for the OCS and SCP
Telkomsel, Amdocs Software Solutions
Limited Liability Company and PT
Application Solutions
July 5, 2011
Development and Rollout agreement for Customer
Relationship Management and Contact Center Solutions
Telkomsel and PT Huawei
March 25, 2013
Technical Support Agreement for the procurement of
Gateway GPRS Support Node (“GGSN”) Service
Complex
Telkomsel and Wipro Limited, Wipro
Singapore Pte. Ltd. and PT WT
Indonesia
April 23, 2013
Development and procurement of OSDSS Solution
agreement
Telkomsel and PT Ericsson Indonesia
October 22, 2013
Telkomsel and PT Dimension Data
Indonesia
May 25, 2016
Procurement of GGSN Service Complex Rollout
agreement
Maintenance and Procurement of Equipment and Related
Service Agreement for Next Generation Convergence
RAN Transport Rollout
(iii) GSD
Contracting parties
Initial date of
agreement
TLT and PT Adhi Karya
November 6, 2012
Significant provisions of the agreement
Structure and main contractor architecture services
agreement for construction of Telkom Landmark Tower
building
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
b. Borrowings and other credit facilities
(i) As of December 31, 2016, 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
Total facility
Maturity
BRI
BNI
Bank Mandiri
350 March 14, 2018
250 March 31, 2017
300 December 23, 2017
Currency
Rp
US$
Rp
US$
Rp
US$
Total
900
Facility utilized
Original
currency
(in millions)
Rupiah
equivalent
-
0
-
0
-
0
31
1
137
1
76
1
247
(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, 2017. Under these facilities, as of
December 31, 2016, Telkomsel has issued a bank guarantee of Rp20 billion (equivalent to
US$1.5 million) for a 3G performance bond (Note 34c.i). The bank guarantee is valid until
March 24, 2016. As of the date of approval and authorization for the issuance of the
consolidated financial statements, the bank guarantee is not extended.
Telkomsel has a Rp500 billion bank guarantee facility with BRI. The facility will expire on
September 25, 2017. Under this facility, as of December 31, 2016, Telkomsel has issued a
bank guarantee of Rp443 billion (equivalent to US$33 million) as payment commitment
guarantee for annual right of usage fee valid until March 31, 2017 and Rp20 billion (equivalent
to US$1.5 million) for a 3G performance guarantee that valid until May 31, 2017. As of the date
of approval and authorization for the extension of the facility is still in process.
Telkomsel has a Rp150 billion bank guarantee facility with BCA. The facility will expire
on April 15, 2017.
Telkomsel has also a Rp100 billion bank guarantee facility with BNI. The facility will expire on
December 11, 2017. Telkomsel uses this facility to replace the time deposit required as
guaranty for the USO program amounting to Rp52 billion (Note 34c.iv).
(iii) TII has a US$15 million bank guarantee from Bank Mandiri. The facility will expire on
December 18, 2017. The outstanding bank guarantee facility as of December 31, 2016
amounting to US$10 million.
c. Others
(i) 3G license
to
reference
Letters No.
the Decision
With
07/PER/M.KOMINFO/2/2006,
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.
103
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(i) 3G license (continued)
reference
With
07/PER/M.KOMINFO/2/2006,
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 each 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 above Decree, the Company and Telkomsel paid the first to fifth
year annual frequency usage fees in 2010 to 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.
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, whereby
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.
Conditional Business Transfer Agreement (“CBTA”)
In order to maximize business opportunities within the group synergy, the Company
restructured its fixed wireless business unit by transferring its fixed wireless business and
subscribers to Telkomsel. On June 27, 2014, the Company signed a CBTA with Telkomsel to
transfer such business and subscribers to Telkomsel (Notes 4, 9b, 31).
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 at the latest until December 14, 2014.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
34. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(ii) Radio Frequency Usage (continued)
Conditional Business Transfer Agreement (“CBTA”) (continued)
Based on MoCI Decision letter No. 807/KOMINFO/OJ-SOPI.4/SP.03.03/10/2016 dated
October 13, 2016 stated that frequency migration process of frequency spectrum of 800 MHz
has finished and Telkomsel has been able to use frequencies (880 - 887.5) MHz paired with
(925 - 932.5) MHz nationwide.
Regarding the case, the Company and Telkomsel agreed that all conditions as mentioned in
CBTA have been met on September 30, 2016 and on October 21, 2016, the CBTA in 2016 has
been completed.
(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 2017 and 2026. Periods
may be extended based on the agreement by both parties.
Future minimum lease payments and receivables under the operating lease agreements as of
December 31, 2016 are as follows:
As lessee
As lessor
Total
29,617
2,443
Less than 1
year
1-5 years
More than 5
years
3,814
774
14,479
1,400
11,324
269
In connection with the restructuring of its fixed wireless business (Note 34c.ii), the Company is
undertaking a negotiation to early terminate its operating lease agreements, and has recorded
provisions for early termination amounting to Rp202 billion and Rp666 billion which are
presented as “Other Expense” in 2015 and 2016, respectively. As of December 31, 2016,
outstanding payable balance of operating lease agreements due to early termination amounting
to Rp300 billion.
The future minimum lease payments above include those related to lease agreements with
telecommunication tower providers which were used for the 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 year 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 (with due consideration for bad debts and/or interconnection
in December 2012, Decree
charges and/or connection charges). Subsequently,
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.
105
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
34. 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, among others,
in providing telecommunication access and services in rural areas (USO Program), the provider
is determined 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”).
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 2015, 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. On 22 September 2016, BANI
decided that BPPPTI should pay the underpayment to the Company for USO-PLIK and
USO-MPLIK project amounting to Rp127 billion and Rp342 billion, respectively.
As of the date of the issuance of these consolidated financial statements, the Company has
received payment from BPPPTI amounting to Rp278 billion.
b. Telkomsel
On January 16 and 23, 2009, Telkomsel was selected in a tender by the Government
through BTIP to provide and operate 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 obtained 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 - 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.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
34. 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 were 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 overpayment by BPPPTI for the USO program amounting to Rp94.2 billion.
Telkomsel accepted the decision and paid the overpayment in December 2015. On October
29, 2015, BPPPTI informed that operational license for USO program of “Desa Pinter” could
not be issued. On January 2016, Telkomsel filed an arbitration claim to BANI for terminating
the USO program.
As of December 31, 2016 and 2015, the Company’s and Telkomsel’s net carrying amount of
trade receivables for the USO programs which are measured at amortized cost using the
effective interest method amounted to Rp178 billion and Rp179 billion, respectively (Note 5).
35. 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 Rp43 billion as of December 31, 2016.
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. On June 17, 2008, in case No. 26/KPPU-L/2007,
the Company, Telkomsel and seven other local operators was investigated. As a result of the
investigations, KPPU stated that the Company, Telkomsel and five 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.
Seven other local operators also filed an appeal in various court. Regarding the case, the KPPU
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 in case
No. 03/KPPU/208/PN.JKT.PST decided that the Company, Telkomsel and seven other local
operators upon the case.
On July 23, 2015, KPPU filed an appeal to the SC regarding the case of SMS cartel practices.
On February 29, 2016, the SC in case No. 9 K/Pdt.Sus-KPPU/2016 decided on the case in favor of
KPPU, therefore that the Company and Telkomsel have to pay penalty charged by KPPU amounting
to Rp18 billion and Rp25 billion. As of the date of approval and authorization for the issuance of the
consolidated financial statements, the Company and Telkomsel have paid the penalty to the
treasury fund.
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
that the Company to pay fair compensation or to vacate and surrender the disputed land to the
plaintiffs.
107
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
35. CONTINGENCIES (continued)
b. On May 20, 2013, the Company filed an appeal to the Makassar High Court, objecting to the District
Court’s rulling. In December 2013, the Makassar High Court pronounced its verdict that was
favorable to the plaintiffs and the Company filed an appeal to the SC.
On January 9, 2015, the Company received the SC Notice No. 226/Pdt.G/2012/PN.Mks, regarding
the case which rejected the Company’s appeal. On February 5, 2015, the Company requested for
a judicial review of the case by the SC.
On December 16, 2015, through its letter No. 336 PK/Pdt/2015, the SC decided on the case in favor
of the Company.
36. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
U.S. dollar
(in millions)
Japanese yen
(in millions)
Others*
(in millions)
Rupiah equivalent
(in billions)
2016
Assets
Cash and cash equivalents
Other current financial assets
Trade receivables
Related parties
Third parties
Other receivables
Advances and other non-current assets
Total assets
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
204.34
8.81
0
106.70
0.44
4.09
324.38
(0.18 )
(163.09 )
(5.40 )
(27.99 )
(0.48 )
(10.88 )
(0.10 )
(64.14 )
(272.26 )
52.12
5.99
-
-
-
-
-
5.99
-
(4.83 )
-
(20.96 )
-
(767.90 )
-
(5,375.28 )
(6,168.97 )
(6,162.98 )
20.94
0.35
0
3.88
0.10
-
25.27
(0.01 )
(6.21 )
(1.18 )
(0.18 )
-
-
-
-
(7.58 )
17.69
3,032
122
0
1,488
7
56
4,705
(2 )
(2,246 )
(88 )
(381 )
(7 )
(235 )
(1 )
(1,482 )
(4,442 )
263
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
36. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (continued)
Assets
Cash and cash equivalents
Other current financial assets
Trade receivables
Related parties
Third parties
Other receivables
Advances and other non-current assets
Total assets
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
U.S. dollar
(in millions)
Japanese yen
(in millions)
Others*
(in millions)
Rupiah equivalent
(in billions)
2015
494.19
30.37
1.69
104.19
0.40
3.88
634.72
(0.42 )
(202.04 )
(22.26 )
(34.45 )
(0.48 )
(12.04 )
(1.99 )
(187.48 )
(461.16 )
173.56
11.37
-
-
-
-
-
11.37
-
(10.73)
-
(25.45)
-
(767.90)
-
(6,143.18 )
(6,947.26 )
(6,935.89 )
10.34
1.02
-
1.18
0.10
-
12.64
-
(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.
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, 2016 using
the exchange rates on March 2, 2017, the unrealized foreign exchange loss amounted to
Rp22 billion.
37. FINANCIAL RISK MANAGEMENT
1. Fair value of financial assets and financial liabilities
a. Classification
i. Financial asset
Fair value of financial asset through profit or loss
Derivative asset – put option
Loans and receivables
Cash and cash equivalents
Trade receivables and other receivables, net
Other current financial assets
Other non-current assets
Available-for-sale financial assets
Available-for-sale investment
Total financial asset
2016
2015
-
172
29,767
7,900
313
210
1,158
39,348
28,117
7,872
2,486
379
160
39,186
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
1. Fair value of financial assets and financial liabilities (continued)
a. Classification (continued)
ii. Financial liabilites
Financial liabilities measured at amortized cost
Trade payables and other payables
Accrued expenses
Loans and other borrowings
Short-term bank loans
Two-step loans
Bonds and notes
Long-term bank loans
Obligation under finance lease
Other borrowings
Total financial liabilities
2016
2015
13,690
11,283
911
1,292
9,323
15,566
4,010
697
56,772
14,284
8,247
602
1,520
9,548
18,362
4,580
-
57,143
b. Fair Value
2016
Financial assets measured at fair value
Available-for-sale investment
Total
Financial liabilities for which
fair value are disclosed
Interest-bearing loans and other
borrowings
Two-step loans
Bonds and notes
Long-term bank loans
Obligation under finance lease
Other borrowings
Total
Fair value measurement at reporting date using
Quoted prices in
active markets for
identical assets
or liabilities
(level 1)
Significant
other
observable
inputs
(level 2)
Significant
unobservable
inputs
(level 3)
Carrying
value
Fair Value
1,158
1,158
1,158
1,158
1,058
1,058
100
100
-
-
1,292
9,323
15,566
4,010
697
30,888
1,312
9,684
15,404
4,010
689
31,099
-
9,342
-
-
-
9,342
-
-
-
-
-
-
1,312
342
15,404
4,010
689
21,757
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
1. Fair value of financial assets and financial liabilities (continued)
b. Fair Value (continued)
2015
Financial assets measured at fair value
Available-for-sale investment
Fair value through profit or loss
Total
Financial liabilities for which fair value are
disclosed
Interest-bearing loans and other borrowings
Two-step loans
Bonds and notes
Long-term bank loans
Obligation under finance lease
Total
Fair value measurement at reporting date using
Quoted prices in
active markets
for identical
assets or
liabilities
(level 1)
Significant
other
observable
inputs
(level 2)
Significant
unobservable
inputs
(level 3)
Carrying
value
Fair Value
160
172
332
160
172
332
55
-
55
105
-
105
-
172
172
1,520
9,548
18,362
4,580
34,010
1,538
9,541
18,314
4,580
33,973
-
8,972
-
-
8,972
-
-
-
-
-
1,538
569
18,314
4,580
25,001
Available-for-sale financial assets primarily consist of mutual funds, and Corporate and
Government bonds. Mutual funds actively traded in an established market are stated at Fair
Value using quoted market price and classified within level 1. Corporate and Government bonds
are stated at fair value by reference to prices of similar securities at the reporting date. Valuation
of put option needs significant judgement from management because there is no market price
quotation and lack of comparable instruments available in the market. 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 in Indonusa which was received as part of the divestment considerations.
The valuation of put option requires significant management judgement due to the absence of
quoted market prices and the lack of comparable instruments in the market. As the put option
is subject to restrictions on redemption (such as transfer restrictions and initial lock-up periods)
and observable activity for the investment is limited, this investment is therefore classified within
level 3 of the fair value hierarchy.
Reconciliations of the beginning and ending balances for items measured at fair value using
significant unobservable inputs (level 3) as of December 31, 2016 and 2015 are as follows:
Beginning balance
Unrealized loss - recognized in the consolidated
statements of profit or loss and other comprehensive
income
Ending balance
2016
2015
172
290
(172 )
-
(118 )
172
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
1. Fair value of financial assets and financial liabilities (continued)
c. Fair value measurement
Fair value is the amount for which an asset could be exchanged, or a liability settled between
parties 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.
(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.
2. 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.
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.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
2. Financial risk management (continued)
a. Foreign exchange risk (continued)
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:
2016
2015
U.S. dollar
(in billions)
Japanese yen
(in billions)
U.S. dollar
(in billions)
Japanese yen
(in billions)
0.32
(0.27 )
0.05
0.01
(6.17 )
(6.16 )
0.63
(0.46 )
0.17
0.01
(6.95 )
(6.94 )
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, 2016 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.
December 31, 2016
U.S. dollar (1% strengthening)
Japanese yen (5% strengthening)
Equity/profit (loss)
7
(35 )
A weakening of the U.S.dollar and Japanese yen against the rupiah at December 31, 2016
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, 2016, 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.
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 15 and 16).
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.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
2. Financial risk management (continued)
c. Interest rate risk (continued)
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
2016
2015
(16,383 )
(15,416 )
(16,687 )
(17,925 )
As of December 31, 2016, a decrease (increase) by 25 basis points in interest rates of variable
rate borrowings would have
loss by
Rp38.5 billion, respectively. This analysis assumes that all other variables, in particular foreign
currency rates, remain constant.
increased (decreased) equity and profit or
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
2016
2015
29,767
1,471
7,900
210
39,348
28,117
2,818
7,872
379
39,186
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.
Credit risk from balances with banks and financial institutions is managed by the Group’s
Corporate Finance department in accordance with the Group’s written policy. The Group placed
the majority of its cash and cash equivalents in state-owned 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. Therefore, it is intended to minimize financial loss through banks
and financial institutions’ potential failure to make payments.
Trade and other receivables do not have any major concentration of risk whereas no customer
receivable balances exceed 6% of trade receivables as of December 31, 2016.
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.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL RISK MANAGEMENT (continued)
2. Financial risk management (continued)
e. Liquidity risk
Liquidity risk arises in situations where the Group has difficulties in fulfilling financial liabilities
when they become due.
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, 2016
Trade and other payables
Accrued expenses
Interest bearing loans and other
borrowings
Bank loans
Bonds and notes
Obligations under finance
leases
Two-step loans
Other borrowings
Carrying
amount
Contractual
cash flows
2017
2018
2019
2020
2021 and
thereafter
13,690
11,283
(13,690 )
(11,283 )
(13,690 )
(11,283 )
-
-
-
-
-
-
-
-
16,477
9,323
(20,421 )
(19,670 )
(5,875 )
(969 )
(5,635 )
(967 )
(2,883 )
(1,187 )
(2,565 )
(3,000 )
(3,463 )
(13,547 )
4,010
1,292
697
(5,160 )
(1,487 )
(1,007 )
(987 )
(279 )
(60 )
(892 )
(244 )
(118 )
(816 )
(216 )
(164 )
(771 )
(209 )
(153 )
(1,694 )
(539 )
(512 )
Total
56,772
(72,218 )
(33,143 )
(7,856 )
(5,266 )
(6,698 )
(19,755 )
December 31, 2015
Trade and other payables
Accrued expenses
Interest bearing loans and other
borrowings
Bank loans
Bonds and notes
Obligations under finance
leases
Two-step loans
Total
Carrying
amount
Contractual
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
(23,760 )
(20,919 )
(5,182 )
(1,032 )
4,580
1,520
57,143
(6,069 )
(1,791 )
(75,070 )
(1,027 )
(293 )
(30,065 )
(4,339 )
(1,012 )
(991 )
(282 )
(6,624 )
(8,780 )
(1,008 )
(2,037 )
(1.226 )
(3,422 )
(16,641 )
(888 )
(247 )
(10,923 )
(800 )
(219 )
(4,282 )
(2,363 )
(750 )
(23,176 )
The difference between the carrying amount and the contractual cash flows is interest value.
The interest value of variable-rate borrowings are determined based on the interest rates
effective as of reporting date.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
38. CAPITAL MANAGEMENT
The capital structure of the Group is as follows:
Short-term debts
Long-term debts
Total debts
Equity attributable to owners of the
parent company
Total
2016
2015
Amount
Portion
Amount
Portion
911
30,888
31,799
84,384
116,183
0.78%
26.59%
27.37%
72.63%
100%
602
34,010
34,612
75,136
109,748
0.55%
30.99%
31.54%
68.46%
100.00%
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, 2016 and 2015 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
2016
2015
31,799
(29,767 )
2,032
84,384
2.41%
34,612
(28,117 )
6,495
75,136
8.64%
As stated in Notes 16, the Group is required to maintain a certain debt-to-equity ratio and debt service
coverage ratio by the lenders. For the year ended December 31, 2016 and 2015, the Group has
complied with the externally imposed capital requirements.
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
39. SUPPLEMENTAL CASH FLOWS INFORMATION
The non-cash investing activities for the years ended December 31, 2016 and 2015 are as follows:
Acquisition of property and equipment credited to:
Trade payables
Non-monetary exchange
Obligations under finance leases
Interest capitalization
Acquisition of intangible assets credited to:
Trade payables
40. SUBSEQUENT EVENTS
2016
2015
6,199
636
368
188
4,979
-
452
-
41
179
a. On January 23, 2017, Telkom Akses received VAT restitution related to the overpayment
assessment letter for period May - December 2014 amounting to Rp169.4 billion.
b. On February 15, 2017, the Company successfully launched its ninth satellite, Telkom 3S, in
Kourou, French Guiana with an investment of US$215 million or equivalent to Rp2,896 billion, that
includes the cost of manufacturing satellite, launching services and insurance.
41. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND INTERNATIONAL FINANCIAL
REPORTING STANDARDS (“IFRS”)
The following tables set forth a reconciliation of the consolidated statement of financial position as of
December 31, 2016 and consolidated statements of profit or loss and other comprehensive income for
the year ended December 31, 2016, in each case between PSAK and IFRS.
PSAK
RECONCILIATION
IFRS
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
Total Current Assets
NON-CURRENT ASSETS
Long-term investments
Property and equipment - net of accumulated depreciation
Prepaid pension benefit cost
Advances and other non-current assets
Intangible assets - net of accumulated amortization
Deferred tax assets - net
Total Non-current Assets
TOTAL ASSETS
117
29,767
1,471
894
6,469
537
584
5,246
592
2,138
3
47,701
1,847
114,498
199
11,508
3,089
769
131,910
179,611
-
-
29,767
1,471
594
(594 )
-
-
-
-
-
-
-
1,488
5,875
537
584
5,246
592
2,138
3
47,701
-
(268 )
-
-
-
-
1,847
114,230
199
11,508
3,089
769
(268 )
131,642
(268 )
179,343
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
41. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND INTERNATIONAL FINANCIAL
REPORTING STANDARDS (“IFRS”) (continued)
PSAK
RECONCILIATION
IFRS
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 borrowings
Total Current Liabilities
NON-CURRENT LIABILITIES
Deferred tax liabilities - net
Unearned income
Other liabilities
Long service award provisions
Pension benefits and other post-employment benefits
Long-term borrowings - net of current maturities
Total Non-current Liabilities
TOTAL LIABILITIES
EQUITY
Capital stock
Additional paid-in capital
Treasury stock
Other equity
Retained earnings
Net equity attributable to owners of the Parent Company
Non-controlling Interests
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
1,547
11,971
172
2,954
11,283
5,563
840
911
4,521
39,762
745
425
29
613
6,126
26,367
34,305
74,067
5,040
4,931
(2,541 )
339
76,615
84,384
21,160
105,544
179,611
1,295
(1,295 )
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(478 )
-
(161 )
418
(221 )
(47 )
2,842
10,676
172
2,954
11,283
5,563
840
911
4,521
39,762
745
425
29
613
6,126
26,367
34,305
74,067
5,040
4,453
(2,541 )
178
77,033
84,163
21,113
(268 )
105,276
(268 )
179,343
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
41. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND
INTERNATIONAL
FINANCIAL REPORTING STANDARDS (“IFRS”) (continued)
PSAK
RECONCILIATION
IFRS
REVENUES
Operation, 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 profit of associated companies
PROFIT BEFORE INCOME TAX
INCOME TAX EXPENSE
PROFIT FOR THE YEAR
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 loss of associated companies
Other comprehensive income not to be
reclassified to profit or loss in subsequent
periods:
Defined benefit plan actuarial
(loss) gain - net of tax
Other comprehensive income - net
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 (100 Series B shares
116,333
(31,263
)
(18,532 )
(13,612 )
(3,218 )
(4,610 )
(4,132 )
(52 )
750
(2,469 )
39,195
1,716
(2,809 )
87
38,189
(9,017 )
29,172
(40 )
0
(1 )
(2,058
)
(2,099 )
27,073
19,352
9,820
29,172
17,331
9,742
27,073
-
-
(24 )
-
-
-
-
-
1
-
(23 )
-
-
-
(23 )
-
(23 )
-
-
-
-
-
(23 )
(19 )
(4 )
(23 )
(19 )
(4 )
(23 )
116,333
(31,263
)
(18,556 )
(13,612 )
(3,218 )
(4,610 )
(4,132 )
(52 )
751
(2,469 )
39,172
1,716
(2,809 )
87
38,166
(9,017 )
29,149
(40 )
0
(1 )
(2,058
)
(2,099 )
27,050
19,333
9,816
29,149
17,312
9,738
27,050
196.19
(0.20 )
195.99
per ADS)
19,619.11
(19.26 )
19,599.85
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, 2016 and for the Year Then Ended
(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)
41. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND
INTERNATIONAL
FINANCIAL REPORTING STANDARDS (“IFRS”) (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.
120
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
LAPORAN KEUANGAN
TANGGAL 31 DESEMBER 2016
DAN UNTUK TAHUN YANG BERAKHIR
PADA TANGGAL TERSEBUT
BESERTA LAPORAN AUDITOR INDEPENDEN
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)
FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2016
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 POSISI KEUANGAN
31 Desember 2016
(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 FINANCIAL POSITION
December 31, 2016
(Expressed in Rupiah)
ASET
Kas dan Setara Kas
Pinjaman kepada BUMN Pembina lain/
Lembaga Penyalur
setelah dikurangi penyisihan
penurunan nilai sebesar
Rpnil
(2015: Rp11.444.509.078)
Pinjaman kepada Mitra Binaan setelah
dikurangi penyisihan kerugian
penurunan nilai sebesar
Rp89.312.658.468
(2015: Rp109.770.010.235)
Aset Tetap Tidak Berfungsi
Pinjaman Bermasalah
setelah dikurangi penyisihan
penurunan nilai sebesar
Rp107.263.845.163
(2015: Rp82.673.017.234)
31 Desember 2016/ Catatan/ 31 Desember 2015/
December 31, 2015
Notes
December 31, 2016
114.297.927.433
2b,4
119.512.444.975
- 2c,2d,5
4.999.999.996
518.310.497.236
-
2c,2d,6a,6b
7
458.634.533.531
-
ASSETS
Cash and Cash Equivalents
Loan to other Foster SOE or
Distributing Partners
net of allowance for
impairment losses
of Rpnil
(2015: Rp11,444,509,078)
Loan to Foster Partners
net of allowance for
impairment losses
of Rp89,312,658,468
(2015 : Rp109,770,010,235)
Fixed Asset Not in Use
-
2f,8
Troubled Loan
net of allowance for impairment
losses of Rp107,263,845,163
(2015: Rp82,673,017,234)
-
JUMLAH ASET
632.608.424.669
583.146.978.502
TOTAL ASSETS
LIABIL ITAS DAN ASET NETO
LIABILITAS
LIABILITIES AND NET ASSETS
LIABILITIES
Liabilitas Lancar Lainnya
Angsuran Belum Teridentifikasi
Kelebihan Pembayaran Angsuran
Utang Lain-lain
-
549.272.950
160.352.992
25.000.000
2j,9
2h,10
2i,11
2j,12
10.972.947.055
467.059.449
158.652.706
119.546.500
Other Current Liabilities
Unidentified Installments
Overpayment of Installments
Other Payables
JUMLAH LIABILITAS
734.625.942
11.718.205.710
TOTAL LIABILITIES
ASET NETO
Aset Neto Tidak Terikat
631.873.798.727
2k,13
571.428.772.792
NET ASSETS
Unrestricted Net Assets
JUMLAH ASET NETO
631.873.798.727
571.428.772.792
TOTAL NET ASSETS
JUMLAH LIABILITAS DAN ASET
NETO
632.608.424.669
583.146.978.502
TOTAL LIABILITIES AND
NET ASSETS
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.
1
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 2016
(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, 2016
(Expressed in Rupiah)
Tahun yang Berakhir pada
tanggal 31 Desember/
Year Ended December 31,
2016
Catatan/
Notes
2015
PERUBAHAN ASET NETO
TIDAK TERIKAT
PENDAPATAN
Penerimaan dari BUMN Pembina
Pendapatan Jasa Administrasi
Pinjaman
Pendapatan Bunga:
Program Kemitraan
82.000.000.000
32.269.932.808
895.534.687
Program Bina Lingkungan
Pendapatan Lain - lain
1.719.253.436
20.044.076.628
14
15
16a
16b
17
-
17.874.573.518
1.566.703.122
3.048.273.583
31.206.191
CHANGES IN UNRESTRICTED
NET ASSETS
REVENUE
Revenue from Foster SOE
Loan Administration Service
Income
Interest Income on:
Partnership Program
Community Development
Program
Other Income
JUMLAH PENDAPATAN
136.928.797.559
22.520.756.414
TOTAL REVENUE
BEBAN
Dana Pembinaan Kemitraan
(Pemulihan)/Kerugian Penyisihan
Penurunan Nilai Pinjaman, neto
-
(5.485.680.021)
Penyaluran Dana Bina Lingkungan
Beban Pembinaan
81.969.451.645
-
Beban Administrasi dan Umum
Beban Sewa
-
-
18
6d
19
20
21
22
6.014.476.847
20.641.603.199
-
2.289.880.645
5.584.101.195
1.436.320.910
EXPENSES
Fostering Partnership Funds
(Recovery)/Allowance for
Impairment of Loan, net
Community Development
Funds Distribution
Empowerment Expenses
General and
Administration Expenses
Rent Expenses
JUMLAH BEBAN
76.483.771.624
35.966.382.796
TOTAL EXPENSES
KENAIKAN (PENURUNAN)
ASET NETO TIDAK TERIKAT
TAHUN BERJALAN
ASET NETO TERIKAT
TAHUN BERJALAN
KENAIKAN (PENURUNAN)
ASET NETO TAHUN BERJALAN
60.445.025.935
(13.445.626.382)
INCREASE (DECREASE) IN
UNRESTRICTED NET ASSETS
FOR THE YEAR
-
-
RESTRICTED NET ASSETS
FOR THE YEAR
60.445.025.935
(13.445.626.382)
INCREASE (DECREASE) IN
NET ASSETS FOR THE YEAR
NET ASSETS
AT BEGINNING OF YEAR
ASET NETO AWAL TAHUN
571.428.772.792
584.874.399.174
ASET NETO AKHIR TAHUN
631.873.798.727
571.428.772.792
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
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 2016
(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 CASH FLOWS
For the Year Ended December 31, 2016
(Expressed in Rupiah)
Tahun yang Berakhir pada
tanggal 31 Desember/
Year Ended December 31,
2016
2015
60.445.025.935
(13.445.626.382)
AKTIVITAS OPERASI
Kenaikan (penurunan) Aset Neto
tahun berjalan
Penyesuaian
(Pemulihan) kerugian penyisihan
penurunan nilai pinjaman, neto
(5.485.680.021)
20.641.603.199
Perubahan aset dan liabilitas
Pinjaman kepada BUMN Pembina lain/
Lembaga Penyalur
Pinjaman kepada Mitra Binaan
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
4.999.999.996
(54.190.283.684)
(10.972.947.055)
-
82.213.501
1.700.286
(94.546.500)
5.650.000.004
(66.741.740.864)
10.972.947.055
(879.175.000)
346.012.126
(1.154.632.743)
(348.173.500)
(5.214.517.542)
(44.958.786.105)
(5.214.517.542)
(44.958.786.105)
OPERATING ACTIVITIES
Increase (decrease) in
Net Assets for the year
Adjustments
(Recovery) allowance for
impairment of loan, net
Change in asset and liability
Loan to other Foster SOE or
Distributing Partners
Loan to Fosters Partners
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
119.512.444.975 164.471.231.080
114.297.927.433 119.512.444.975
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 2016 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, 2016 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
(BUMN
PT Telekomunikasi
Direksi
Keputusan
Pembina) melalui
No. 61/ PS150/ CTG-10/ 2003
tentang
Pembentukan Organisasi Pusat Pengelola
Program Kemitraan dan Program Bina
Lingkungan (Community Development Center).
Keputusan Direksi ini telah berubah beberapa
kali. Keputusan Direksi ini terakhir kali diubah
melalui
Direksi
Keputusan
No. KD. 12/ PS150/ COP-B0030000/2008
tanggal 5 Februari 2008 tentang Organisasi
Pusat Pengelolaan Program Kemitraan dan
(Community
Program Bina
Development Center).
Lingkungan
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
bentuk
No. KEP-236/MBU/2003. Sebagai
implementasi 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
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
CDC was established as an implementation
from the Decree of Minister of State-Owned
Enterprises (“SOE”) No. KEP-236/MBU/2003
dated June 17, 2003
regarding SOE’s
Partnership Program and Small Enterprises
and Community Development Program. The
Decree of Minister SOE was based on The
Law of Republic of Indonesia No. 19 Tahun
2003
to
develop small cooperative business and
community development.
regarding allowance
from profit
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 then is amended
No.
by
of
dated
KD.21/PR0000/COP-B0030000/2010
April 19, 2010 regarding Management of
Partnership
and Community
Development Program.
Directors
Program
Program
Decree
the
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 2016 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, 2016 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.
PER-09/MBU/07/2015,
Pada
tanggal 3 Juli 2015, Kementerian
BUMN memberlakukan PER-09/MBU/07/2015
menggantikan Keputusan Menteri BUMN
PER-07/MBU/05/2015. Sebagai implementasi
Direksi
dari
(Persero)
Perusahaan
Tbk
PT Telekomunikasi
mengeluarkan
Direksi
No.
PD.702.00/r.00/PR000/
CDC- A1040000/2015 tanggal 10 Desember
2015 tentang Pengelolaan Program Kemitraan
dan Program Bina Lingkungan.
Perseroan
Peraturan
Indonesia
tanggal
Desember
19
BUMN
Pada
2016,
memberlakukan
Kementerian
PER-03/MBU/12/2016 tentang Perubahan atas
Peraturan
Nomor
Menteri
PER-09/MBU/07/2015.
BUMN
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,
issued
PER-07/MBU/2015 regarding SOE Partnership
Program with Small Business and Community
Development
replacing
PER-08/MBU/2013.
2015, Minister
of SOE
Program
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)
Tbk
PT
of
issued
Directors
No.
PD.702.00/r.00/PR000/
CDC- A1040000/2015 dated 10 Desember
2015 regarding Management of Partnership
Program
and Community Development
Program.
Telekomunikasi
Decree
Indonesia
the
On December 19, 2016 Ministry of SOE issued
the
PER-03/MBU/12/2016
Amendments to Regulation of Ministry of SOE
Number PER-09/MBU/07/2015.
regarding
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
dana
membiayai modal
pembelian aktiva
meningkatkan produksi dan penjualan.
pinjaman
untuk
kerja dan atau
tetap dalam rangka
5
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
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 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)
2) Penyaluran dana pinjaman
tambahan
untuk membiayai kebutuhan dana dalam
pelaksanaan kegiatan usaha Mitra Binaan
yang bersifat jangka pendek dalam rangka
memenuhi pesanan dari rekanan usaha
Mitra Binaan.
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
h. Pendidikan, pelatihan, pemagangan,
pemasaran, promosi, dan bentuk
bantuan
terkait dengan
upaya peningkatan kapasitas mitra
binaan program kemitraan.
lain yang
4) Pengawasan
Binaan.
5) Pelaporan kegiatan PKBL.
2) Additional
loan distribution to finance the
short-term funding requirements for the
operations of the Foster Partners to fulfill
orders from the business partner of the
Foster Partners.
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.
kegiatan
usaha Mitra
4) Monitoring of the operations of Foster
Partners.
5) Reporting of PKBL activities.
c. Sumber Dana
c. Funding Resources
Sumber dana CDC adalah berasal dari
anggaran yang diperhitungkan sebagai biaya
(Persero)
Perusahaan
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
(Persero)
Perusahaan
PT Telekomunikasi Indonesia Tbk expenses
as Fosters SOE and
fund development
program.
Perseroan
6
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 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
d. Management Structure
tanggal
Susunan Pengelola CDC pada
31 Desember 2016 dan 2015 adalah sebagai
berikut:
Management Structure of CDC as of
December 31, 2016 and 2015 is as follows:
31 Desember/December 31,
2016
2015
Senior General Manager
Pengelola Fungsi Dukungan:
Senior Manager Perencanaan dan
Pengendalian
Senior Manager Keuangan
M.Sulthonul Arifin
Haris Widjanarko
Susilo Budi Utomo
Nur Hassim Rusdi
Haris Widjanarko
Susilo Budi Utomo
Senior Manager
Program Kemitraan
Senior Manager
Muhammad
Wahyudi
Muhammad
Wahyudi
Program Bina Lingkungan
Hery Susanto
Hery Susanto
Senior General Manager
Supporting Management:
Senior Manager of Planning and
Controlling
Senior Manager of Finance
Senior Manager of
Partnership Program
Senior Manager of Community
Development Program
tentang
KD.21/PR000/COP-
Berdasarkan
B0030000/2010
Pengelolaan
Program Kemitraan dan Program Bina
Lingkungan yang kemudian diubah dengan
PD.702.00/r.00/PR000/ CDC- A1040000/2015
tanggal
tentang
Pengelolaan Program Kemitraan dan Program
Bina Lingkungan, CDC disupervisi oleh
Direktur Human Capital Management. Pada
tanggal 31 Desember 2016 and 2015, 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
tanggal 10 Desember 2015
regarding
Management of Partnership Program and
Community Development Program, CDC is
supervised by the Director of Human Capital
Management. As of December 31, 2016 and
2015, The Director of HCM is Herdy Rosadi
Harman.
Jumlah pengelola untuk tahun yang berakhir
pada tanggal 31 Desember 2016 dan 2015
adalah sebagai berikut:
Number of employees as of December 31,
2016 and 2015 is as follows:
31 Desember/December 31,
2016
2015
CDC Pusat
28
32
CDC Corporate
Seluruh pegawai adalah pegawai yang
memperoleh gaji dan manfaat lainnya dari
BUMN Pembina sehingga masalah penerapan
Imbalan Kerja (PSAK No. 24) dilaksanakan
dan menjadi beban Telkom.
Pemotongan dan penyetoran atas pajak
penghasilan pasal 21 atas pegawai BUMN
Pembina yang ditempatkan di CDC dilakukan
oleh BUMN Pembina.
All employees are employees who earn
salaries and other benefits from Foster SOE
implementation of Employee
so
Benefits (PSAK No. 24) is implemented by and
charged to Telkom.
that
the
Witholding and payment
tax
Article 21 of Foster SOE employee who is
assigned at CDC are performed by Foster
SOE.
income
for
e. Otorisasi Penerbitan Laporan Keuangan
e. Authorization of the Issuance of Financial
Statement
Laporan keuangan
telah diselesaikan dan
disahkan untuk diterbitkan oleh Pengelola CDC
pada tanggal 25 Januari 2017.
The financial statements were completed and
authorized for issuance by CDC Management
on January 25, 2017.
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 2016 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, 2016 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 2016 dan 2015
adalah sebagai berikut:
The significant accounting principles which are
applied consistently in the preparation of the
financial statements for the years ended December
31, 2016 and 2015 are follows:
a. Dasar Penyusunan Laporan Keuangan
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:
tanggal 23 Februari
SE-02/MBU/Wk/2012
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
kebijakan
sebagaimana diuraikan dalam
akuntansi terkait.
Laporan arus kas yang disajikan dengan
menggunakan metode
langsung,
menyajikan penerimaan dan pengeluaran kas
dan setara kas yang diklasifikasikan ke dalam
aktivitas operasi, investasi dan pendanaan.
tidak
a. Basis
of
Statements
Preparation
of
Financial
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.
The
implementation of SAK ETAP in the
preparation of the financial statement is based
on Minister of SOE Circular Letter No.
SE-02/MBU/Wk/2012 dated February 23, 2012
regarding
of
Accounting Standard for Partnership Program
and Community Development that starting from
2012.
Determination
Guidance
The financial statements are prepared on the
accrual basis, except for certain accounts that
are prepared based on other measurement as
explained in related accounting policy.
The statements of cash flows are presented
using the indirect method, presenting cash
receipt and payment and cash equivalents that
are classified into operating, investing and
financing activities.
Tahun buku CDC adalah 1 Januari
31 Desember.
-
financial reporting period of CDC
The
January 1 - December 31.
is
Mata uang yang digunakan pada laporan
keuangan
juga
adalah Rupiah
merupakan mata uang fungsionalnya.
yang
in
the
Amounts
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 2016 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, 2016 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.
Pinjaman kepada mitra binaan dan BUMN
Pembina Lain atau Lembaga Penyalur
disajikan dalam laporan posisi keuangan 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.
Loan are initially measured based on fair
values and
subsequently measured at
amortized cost, after deducted by allowance for
impairment
for
impairment are based on Management’s
evaluation on the collectibility of these loan.
losses. The allowance
Loan to other Foster SOE or Distribution
Partners represents loans given to PKBL unit
or Distributing Partners as synergy form among
PKBL units.
Loan to foster partners are recognized in the
amount of principal and administration 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 or
distributing partners are presented in statement
of financial position as a current asset at its
realizable
agreed
repayment of loan may be more than 1 year
after reporting period.
although
value
the
Penggolongan kualitas pinjaman ditetapkan
sebagai berikut:
The classification of
collectibility are as follows:
loan based on its
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. Current represents principal installment and
administration service 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.
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 2016 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, 2016 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) days 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 the 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 or 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 2016 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, 2016 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
dikurangi akumulasi penyusutan dan
rugi
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 2016 dan 2015,
nilai buku bersih aset tetap adalah nihil.
As of December 31, 2016 and 2015, 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 2016 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, 2016 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 sampai dengan nilai Rp100.000 diakui
sebagai Pendapatan
Lain-lain Program
Kemitraan, sesuai dengan Peraturan Direktur
Human
Nomor:
Capital Management
PR.702.01/r.00/PR000/CDC-A1040000/2016
tanggal 2 Juni 2016
tentang Pedoman
Pelaksanaan Operasional Program Kemitraan
dan Program Bina Lingkungan.Peraturan ini
menggantikan KD.21/PR.000/COP-B0030000/
2010.
of
installments
Overpayment
represents
repayment from foster partners which exceeds
is
loan balance. This overpayment
its
recognized and presented as liability when the
installment is received.
Overpayment of installment from each Foster
Partners to maximum amount of Rp100,000 is
recognizes as Partnership Program Other
Income, based on Decree of the Human
Capital Management Director Number:
PR.702.01/r.00/PR000/CDC-A1040000/2016
dated on June 2, 2016 regarding Operational
Guidelines of Partnership Program and
Community Development Program. This
decree
KD.21/PR.000/COP-
B0030000/ 2010.
replaced
j.
Liabilitas Lancar Lainnya dan Utang Lain-
lain
j. Other Current Liabilities and Other Payables
Liabilitas lancar lainnya dan utang lain-lain
diakui pada saat terjadinya transaksi atau saat
perjanjian kontrak. Utang lain-lain dan liabilitas
lancar lainnya dicatat sebesar nilai transaksi
atau perjanjian kontrak.
Other current liabilities and other payables are
recognized when transactions occur or when
contract are completed. Other payables and
other current liability is recognized based on
transaction amount or contracts.
12
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
2.
IKHTISAR KEBIJAKAN AKUNTANSI YANG
SIGNIFIKAN (lanjutan)
k. Aset Neto
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
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
terikat adalah aset yang
bersih
penggunaannya tidak dibatasi untuk tujuan
tertentu.
tidak
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.
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.
recorded
amount
stipulated
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 BUMN Pembina.
Tax transactions in relation
charged to CDC and reported by Foster SOE.
to CDC are
3. PENGGUNAAN PERTIMBANGAN, ESTIMASI
3. ACCOUNTING JUDGEMENTS, ESTIMATION,
DAN ASUMSI
a. Pertimbangan
AND ASSUMPTION
a. Judgements
Pengelola
Dalam proses penerapan kebijakan akuntansi
membuat
PKBL,
pertimbangan-pertimbangan berikut ini, yang
terpisah dari estimasi dan asumsi, yang
memiliki pengaruh signifikan terhadap jumlah
yang dicatat dalam laporan keuangan:
telah
In the implementation process of PKBL
accounting policies, Management has prepared
these judgements, separated from estimation
and assumption, which have the significant
impact to the amounts recognized
in the
financial statements:
13
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
3. PENGGUNAAN PERTIMBANGAN, ESTIMASI
3. ACCOUNTING JUDGEMENTS, ESTIMATION,
DAN ASUMSI (lanjutan)
a. Pertimbangan (lanjutan)
AND ASSUMPTION (continued)
a. Judgements (continued)
Implementasi PER-09/MBU/07/2015
The implementation of PER-09/MBU/07/2015
to
relation
implementation
In
of
the
PER-08/MBU/2013 as disclosed in Note 1a,
effective January 1, 2013 until December 31,
income
2015, CDC did not
allocation from the Foster SOE and expenses
the distribution of community
related
fund and related operational
development
expenses
the Statements of Activities
in
(Note 19).
recognized
to
to
relation
In
implementation of
the
PER-09/MBU/07/2015 as disclosed in Note
from January 1, 2016, CDC
1a. Started
recognized income allocation from the Foster
the distribution of community
SOE and
development
the Statements of
Activities.
fund
in
general
required
the
PER-09/MBU/07/2015
empowerment
and
expenses,
administration expenses and rent expenses to
recognized by Perusahaan Perseroan
be
(Persero) PT Telekomunikasi Indonesia Tbk as
Foster SOE. Therefore, such expenses were
not recorded by CDC in the Statement of
Activity from July 3, 2015.
general
Empowerment
and
expenses,
administration expenses and rent expenses
from January 1, 2015 until July 2, 2015
were recorded on statement of activities
and
based
PER-07/MBU/05/2015.
PER-08/MBU/2013
on
dengan
Sehubungan
penerapan
PER-08/MBU/2013 yang telah diungkapkan
dalam Catatan 1a, sejak 1 Januari 2013
sampai dengan 31 Desember 2015, CDC tidak
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
dengan
Sehubungan
penerapan
PER-09/MBU/07/2015 yang telah diungkapkan
dalam Catatan 1a. Sejak 1 Januari 2016, CDC
kembali mencatat alokasi laba dari BUMN
Pembina untuk program PKBL dan penyaluran
dana bina lingkungan tersebut dalam Laporan
Aktivitas.
PER-09/MBU/07/2015
juga mensyaratkan
beban pembinaan, beban administrasi dan
umum dan beban sewa menjadi beban
(Persero)
Perusahaan
PT Telekomunikasi
Indonesia Tbk selaku
BUMN Pembina. Dengan demikian, beban-
beban tersebut tidak dicatat oleh CDC dalam
Laporan Aktivitas sejak tanggal 3 Juli 2015.
Perseroan
Beban pembinaan, beban administrasi dan
umum dan beban sewa dari tanggal 1 Januari
2015 sampai dengan 2 Juli 2015 dicatat
dalam Laporan Aktivitas sesuai dengan
PER-08/MBU/2013 dan PER-07/MBU/05/2015.
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 2016 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, 2016 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)
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
kerugian
penurunan nilai pinjaman yang secara khusus
diidentifikasi
tidak
tertagih. Tingkat penyisihan ditelaah oleh
Pengelola berdasarkan
faktor-faktor yang
mempengaruhi tingkat tertagihnya pinjaman
tersebut.
terdapat kemungkinan
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).
b. Estimasi dan Asumsi
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
lembaga penyalur
atas mitra binaan dan
terhadap
tempo untuk
menurunkan pinjaman individu jumlah yang
diharapkan dapat ditagih. Pencadangan
secara
terdapat
informasi
tambahan yang diterima yang
mempengaruhi jumlah yang diestimasikan.
jumlah yang
ini ditelaah
individu
jatuh
jika
CDC juga menaksir 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
besar
tertagih dibandingkan dengan
pinjaman yang diberikan kepada debitur.
tidak
15
CDC uses judgement based on best facts
available to recognize indiviual allowance for
foster partners and distributing partners to
adjust the individual loan to its realizable
amount. This
individual allowance will be
assessed if there is additional information
received which affect the estimated amount.
risks,
credit
assesses
regardless
the allowance
for
CDC also
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.
to other debtors. Allowance
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
3. PENGGUNAAN PERTIMBANGAN, ESTIMASI
3. ACCOUNTING JUDGEMENTS, ESTIMATION,
DAN ASUMSI (lanjutan)
AND ASSUMPTION (continued)
b. Estimasi dan Asumsi
b. Estimations and Assumptions
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
tertentu
kolektif berdasarkan prosentase
tingkat ketertagihan (collection) data historis
yang ada (minimal 2 tahun). Penyisihan ini
disesuaikan
untuk
mencerminkan hasil aktual dan estimasi
(Catatan 5, 6 dan 8).
berkala
secara
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
loan collectibility. This
allowance is adjusted periodically to reflect
actual result and estimation (Notes 5, 6 and 8).
rate of
4. KAS DAN SETARA KAS
4. CASH AND CASH EQUIVALENT
31 Desember/December 31,
2016
2015
Program Kemitraan
Kas di Bank:
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk
4.749.061.270
1.346.644.253
7.002.145.427
5.252.077.147
Jumlah Kas dan Setara Kas
Program Kemitraan
6.095.705.523
12.254.222.574
Program Bina Lingkungan
Kas di Bank:
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk
108.199.543.458 107.257.334.628
887.773
2.678.452
Jumlah Kas dan Setara Kas
Bina Lingkungan
108.202.221.910 107.258.222.401
Partnership Program
Cash in Bank:
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk
Total Cash and Cash Equivalent
Partnership Program
Community Development Program
Cash in Bank:
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk
Total Cash and Cash Equivalent
of Community Development
Jumlah Kas dan Setara Kas
114.297.927.433 119.512.444.975
Total Cash and Cash Equivalent
5. PINJAMAN
KEPADA
BUMN
PEMBINA
5. LOAN TO OTHER FOSTER SOE/ DISTRIBUTING
LAIN/LEMBAGA PENYALUR
PARTNERS
PT Sang Hyang Seri (Persero)
Bank UMKM Jatim
Baitul Maal wat Tamwil Hidayah
Penyisihan penurunan nilai pinjaman
Penilaian individual
Jumlah
31 Desember/December 31,
2016
2015
9.637.740.363
4.999.999.996
1.806.768.715
16.444.509.074
(11.444.509.078)
(11.444.509.078)
4.999.999.996
-
-
-
-
-
-
-
16
PT Sang Hyang Seri (Persero)
Bank UMKM Jatim
Baitul Maal wat Tamwil Hidayah
Allowance for impairment of loan
Individual assessment
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 2016 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, 2016 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)
Mutasi penyisihan penurunan nilai pinjaman adalah
sebagai berikut:
Movement the allowance for impairment of loan are
as follows:
31 Desember/December 31,
2016
2015
Saldo awal
Penambahan - Neto
Penyesuaian
Reklasifikasi sebagai pinjaman bermasalah
11.444.509.078
-
(2.092.352.895)
(9.352.156.183)
11.607.929.078
-
(163.420.000)
-
Beginning balance
Additions - Net
Adjustment
Reclassification to Troubled Loan
-
11.444.509.078
Manajemen berpendapat bahwa saldo penyisihan
penurunan nilai pinjaman cukup untuk menutup
kerugian atas tidak tertagihnya pinjaman.
Management believes
the balance of
allowance for impairment of loan is adequate to
cover losses from uncollectible loan.
that,
2012,
perjanjian
27 Maret
CDC
Pada
tanggal
menandatangani
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
perjanjian
tersebut. Pokok perubahan yang
dilakukan adalah:
ada
- Tidak
atas
denda
keterlambatan pembayaran setelah
tanggal
1 November 2013. Denda yang diakui hingga
tanggal 31 Oktober 2013 adalah sebesar
Rp1.825.325.895.
pengenaan
- Masa berlaku pinjaman menjadi 36 bulan
hingga bulan Oktober 2017.
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.
Pada
tanggal 26 Februari 2016, SGM CDC
menerbitkan nota dinas penetapan pinjaman SHS
sebagai pinjaman bermasalah. Setelah penetapan
tersebut,
pembayaran
sebesar Rp1.825.325.895 dibatalkan dan sisa
saldo pinjaman SHS sebesar Rp7.732.387.468
direklasifikasi menjadi pinjaman bermasalah.
keterlambatan
denda
17
troubled
loan. After
On February 26, 2016, SGM CDC issued Official
Note that SHS’s loan receivable was categorized
the decision, penalty
as
charged for late payment of Rp Rp1,825,325,895
was reversed and remaining SHS’s loan receivable
of Rp7,732,387,468 was classified as troubled
loan.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
5. PINJAMAN
KEPADA
LAIN/LEMBAGA PENYALUR (lanjutan)
BUMN
PEMBINA
5. LOAN TO OTHER FOSTER SOE/ DISTRIBUTING
Bank UMKM Jatim
tanggal 14 November 2014, CDC
Pada
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. Pada
tanggal
23 Desember 2016, pinjaman ke Bank UMKM
Jatim telah dilunasi.
PARTNERS (continued)
Bank UMKM Jatim
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. On December 23, 2016,
loan to Bank UMKM Jatim has been fully settled.
Baitul Maal Wat Tamwil Hidayah (BMT Hidayah)
Baitul Maal Wat Tamwil Hidayah (BMT Hidayah)
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.
(penjamin)
bersedia
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.
In was agreed
distributed,
amount
be
Pada
tanggal 26 Februari 2016, SGM CDC
menerbitkan nota dinas penetapan pinjaman SHS
sebagai pinjaman bermasalah. Setelah penetapan
tersebut, saldo pinjaman per 31 Desember 2016
adalah Rp1.619.768.715 yang telah jatuh tempo
pada November 2013 direklasifikasi menjadi
pinjaman bermasalah.
On February 26, 2016, SGM CDC issued Official
Note that SHS’s loan receivable was categorized
as troubled loan. After the decision, the balance of
this
is
Rp1,619,768,715 which was due to be paid on
November 2013 was reclassified to troubled loan.
loan as at December 31, 2016
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 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
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,
2016
2015
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 58.432.585.847
123.718.052.152 113.328.491.852
80.916.609.472
95.838.619.083 86.948.859.417
69.178.953.031 63.700.890.582
110.618.047.384 111.741.448.694
64.173.013.797 63.823.658.079
47.944.585.670
85.663.884.410
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
607.623.155.704 568.404.543.766
(89.312.658.468) (109.770.010.235)
Total
Allowance for Impairment of Loan
Jumlah Pinjaman kepada Mitra
Binaan - Neto
518.310.497.236 458.634.533.531
Total Loan to Foster Partners - Net
b. Pinjaman kepada Mitra Binaan Menurut
b. Loan to Foster Partners Classified by
Sektor
Sector
Perdagangan
Industri
Jasa
Peternakan
Perikanan
Pertanian
Perkebunan
Lainnya
31 Desember/December 31,
2016
2015
331.429.806.153 304.331.486.357
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
103.933.742.196
103.202.709.589
24.901.514.431
17.965.942.827
12.374.333.707
10.825.446.501
2.989.660.300
Trading
Industry
Service
Farming
Fishing
Agriculture
Plantation
Others
Jumlah
Penyisihan Penurunan Nilai Pinjaman
607.623.155.704 568.404.543.766
(89.312.658.468) (109.770.010.235)
Total
Allowance for Impairment of Loan
Jumlah Pinjaman kepada Mitra
Binaan - Neto
518.310.497.236 458.634.533.531
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
Termasuk didalam saldo pinjaman kepada
Mitra binaan adalah saldo pinjaman tambahan.
Pinjaman
untuk
membiayai kebutuhan dana pelaksanaan
kegiatan usaha mitra binaan yang bersifat
jangka pendek.
disalurkan
tambahan
19
of
Included in loan receivable to foster partner is
receivable.
balance
Additional loan is distributed to finance the
short-term
the
funding
business operations.
requirements
additional
loan
for
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 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 (lanjutan)
Sector (continued)
tanggal 31 Desember 2016, saldo
Pada
saldo
pinjaman
pinjaman
sebesar
Rp72.260.000. Rincian pinjaman tambahan
sebagai berikut:
tambahan merupakan
2
kepada
MB
As of December 31, 2016, additional loan
balance represents loan provided to foster
partner amount of Rp72,260,000. The detail of
additional loan balance is as follows.
Wilayah/ Region
Sektor/
Sector
Jenis Usaha/
Business Type
Kualitas Pinjaman/
Loan Quality
Witel Jakarta Selatan/
South Jakarta region
Witel Banten Timur
/ East
(Tangerang)/
Banten
region
(Tangerang)
Industri/
Industry
Produksi Batik dan Handycraft/
Batik Production and Handycraft
Kurang Lancar/
Substandard
Industri/
Industry
Konveksi
Children clothes
Baju
Anak-Anak/
Kurang Lancar/
Substandard
Nilai Pinjaman +
Jasa/
Loan balance +
Interest
61.125.000
11.135.000
Jumlah/ Total
72.260.000
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% per tahun
dari pokok pinjaman.
Berdasarkan PER-09/MBU/07/2015
yang
efektif tanggal 3 Juli 2015, besarnya jasa
administrasi pinjaman adalah sebesar 6% 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 PER-09/MBU/07/2015 dated July 3,
2015, administration service income is 6% per
annum from the opening balance of the loan.
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,
2016
2015
Saldo awal
(Pembalikan) Penambahan - Neto (20.301.340.092)
Reklasifikasi sebagai bermasalah
109.770.010.235
(156.011.675)
93.864.820.863
20.805.023.199
(4.899.833.827)
Beginning balance
(Reversal) Additional - Net
Reclassification as troubled loan
89.312.658.468
109.770.010.235
20
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
6. PINJAMAN KEPADA MITRA BINAAN (lanjutan)
6. LOAN TO FOSTER PARTNERS (continued)
d. Penyisihan Pinjaman Kepada Mitra Binaan
d. Allowance for Impairment of Loan to Foster
(lanjutan)
Partners (continued)
31 Desember 2016/December 31, 2016
Umur Pinjaman
(dari jatuh tempo)/
Loan Aging
(from maturity date)
Saldo Pinjaman/ Penyisihan/
Allowance
%
Loan
Balance
%
Akumulasi
Penyisihan
2016/
Accumulated
Allowance
2016
Beban/
(Pemulihan)
Penyisihan
2016
Expense/
(Recovery)
Allowance
2016
_
Loan Quality
_
Foster Partners
Collective assessment
Kualitas Pinjaman
Mitra Binaan
Dinilai secara kolektif
Lancar
< 30 hari/ < 30 days
444.563.003.572
1,09%
4.857.792.205
1.233.376.594
Current
Kurang lancar
Diragukan
Macet
Sub Jumlah
Bermasalah
Mitra Binaan
BUMN Pembina lain/
Lembaga Penyalur
Sub Jumlah
Jumlah
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
66.758.642.055
10,34%
6.900.348.611
3.649.657.866
Substandard
> 30 hari ≤ 180 hari
> 30 days < 180 days
> 180 hari ≤ 270 hari
> 180 days < 270 days
23.050.768.636
18,67%
4.303.776.211
990.831.970
> 270 hari/ > 270 days
73.250.741.441
100,00%
73.250.741.441
(26.331.218.197)
607.623.155.704
89.312.658.468 (20.457.351.767)
97.911.688.980
100,00%
97.911.688.980
15.238.671.746
Doubtful
Loss
Sub total
Troubled
Foster Partner
Other Foster SOE/
9.352.156.183
100,00%
9.352.156.183
(267.000.000)
Distributing Partners
107.263.845.163
714.887.000.867
107.263.845.163
14.971.671.746
196.576.503.631
(5.485.680.021)
Sub total
Total
31 Desember 2015/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
21
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 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
7. ASET TETAP TIDAK BERFUNGSI
7. FIXED ASSET NOT IN USE
Mutasi Tahun 2016
Movement 2016
Harga Perolehan
Komputer
Inventaris Kantor
Jumlah Harga Perolehan
Akumulasi Penyusutan
Komputer
Inventaris Kantor
Saldo Awal
1 Jan 2016/
Beginning
Balance
Jan 1, 2016
29.862.600
54.054.050
83.916.650
(29.862.600)
(54.054.050)
Jumlah Akumulasi Penyusutan
(83.916.650)
Nilai Buku
-
Penambahan/
Addition
-
-
-
-
-
-
-
Pengurangan/
Disposal
Saldo Akhir
31 Des 2016/
Ending Balance
Dec 31, 2016
-
-
-
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
Mutasi Tahun 2015
Movement 2015
Penambahan/
Pengurangan/
Disposal
Saldo Akhir
31 Des 2015/
Ending Balance
Dec 31, 2015
-
-
-
-
-
-
-
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 not in use with nil book
value, SGM CDC has submitted a Letter No: 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.
Harga Perolehan
Komputer
Inventaris Kantor
Jumlah Harga Perolehan
Akumulasi Penyusutan
Komputer
Inventaris Kantor
Jumlah Akumulasi Penyusutan
Nilai Buku
Saldo Awal
1 Jan 2015/
Beginning
Balance
Jan 1, 2015
29.862.600
54.054.050
83.916.650
(29.862.600)
(54.054.050)
(83.916.650)
-
Addition
-
-
-
-
-
-
-
Terkait dengan aset tetap tidak berfungsi 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.
22
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
8. PINJAMAN BERMASALAH
8. TROUBLED LOAN
a. Pinjaman Kepada Mitra Binaan Menurut
a. Loan to Foster Partners Classified by
Community Development (CD) Area
Community Development (CD) Area
Pinjaman mitra binaan bermasalah pada
tanggal 31 Desember 2016 dan 2015
berdasarkan CD Regional adalah sebagai
berikut:
loan from foster partners as at
Troubled
December 31, 2016 and 2015 by CD Regional
is as follow:
31 Desember/December 31,
2016
2015
22.906.428.079
22.045.423.531
CD Area I Sumatera
8.507.721.907
CD Area II DKI Jakarta & Banten
9.667.473.840
CD Area III Jabar
7.608.245.571
CD Area IV Jateng & DIY
9.446.672.858
CD Area V Jatim & Madura
CD Area VI Kalimantan
8.939.010.806
CD Area VII Kawasan Timur Indonesia 18.379.765.863 16.458.468.721
11.483.391.100
9.595.728.427
11.628.270.532
12.195.319.767
11.722.785.212
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
97.911.688.980
82.673.017.234
CD Corporate
Jumlah
Penyisihan Pinjaman Bermasalah
9.352.156.183
-
CD Corporate
107.263.845.163
(107.263.845.163)
82.673.017.234
Total
(82.673.017.234) Allowance for Impairment of Troubled Loan
Jumlah Pinjaman Bermasalah - Neto
-
-
Troubled Loan Distribution - Net
Terkait dengan pinjaman mitra binaan
bermasalah tersebut, CDC telah beberapa kali
mengusulkan kepada Kementerian Badan
Usaha Milik Negara untuk dihapusbukukan.
Terakhir melalui surat SGM CDC Nomor
tanggal
Tel.181/KU000/CDC-A1000000/2016
28 Desember
untuk
diusulkan
2016
dihapusbukukan sebesar Rp106.408.887.863
yang merupakan pinjaman bermasalah periode
1 Januari 2001 sampai dengan 20 Desember
2016.
Sampai dengan tanggal penyelesaian laporan
keuangan
untuk
penghapusbukuan
bermasalah
belum diperoleh dari Kementerian BUMN.
persetujuan
pinjaman
In relation to such troubled loan from foster
partners, CDC has proposed several times to
Ministry of State-Owned Enterprise (SOE) to
write-off the trouble loan. The latest, SGM
CDC sent the Letter No: Tel.181/KU000/CDC-
A1000000/2016 dated December 28, 2016
regarding
off
proposal
Rp106,408,887,863 which are troubled loans
from January 1, 2001 until December 20,
2016.
to write
the
Until the completion date of the financial
statement, the approval for the proposal to
write-off for the troubled loan has not been
obtained from the Ministry of SOE.
b. Pinjaman Bermasalah Diterima Kembali
b. Repayment of Troubled Loan
31 Desember/December 31,
2016 2015
Saldo awal
Penambahan
82.673.017.234 77.773.183.407
26.933.698.669 5.637.473.724
Beginning balance
Additions
Saldo akhir
Jumlah pinjaman bermasalah
109.606.715.903 83.410.657.131
(107.263.845.163)
(82.673.017.234)
Ending balance
Total troubled loan
Pinjaman bermasalah
Diterima kembali
2.342.870.740 737.639.897
Repayment of Troubled Loan
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 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
9. LIABILITAS LANCAR LAINNYA
9. OTHER CURRENT LIABILITIES
31 Desember/December 31,
2016
2015
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
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)
Jumlah liabilitas lancar lainnya
-
10.972.947.055
Total other current liabilities
Pengembalian dana Program BUMN Peduli
Refunds of SOE Care Program
liabilitas
lancar dari PT Bank Rakyat
Saldo
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
proses
31 Desember
penyelesaian.
2015 masih dalam
tanggal
31 Desember
Pada
saldo
pengembalian dana program BUMN Peduli sebesar
Rp9.811.832.358 telah dicatat sebagai pendapatan
lain-lain.
2016,
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 were evaluated by CDC and
until December 31, 2015 were still in progress.
As of December 31, 2016, the balance of the
refund of SOE Care Program is Rp9,811,832,358
has been recorded as other income.
Perusahaan Perseroan PT Telekomunikasi
Indonesia Tbk
Perusahaan Perseroan PT Telekomunikasi
Indonesia Tbk
Berdasarkan
Keputusan
Indonesia
Komisaris
PT Telekomunikasi
Tbk
No. 17/KEP/DK/2014/RHS tanggal 10 Desember
2014, besaran dana PKBL untuk tahun 2015 adalah
sebagai berikut:
(Persero)
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 direalisasi pada bulan Februari,
Maret, Oktober dan Desember 2015.
The total of fund allocation from the Foster SOE
was Rp82,000,000,000. The allocated fund were
realized on February, March, October and
December 2015.
bina
adalah
Selama tahun 2015, realisasi penyaluran dana
program
sebesar
lingkungan
Rp72.410.726.781 dan biaya operasional PKBL
adalah sebesar Rp8.428.158.522. Sehingga sisa
dana bina
lingkungan yang belum digunakan
sebesar Rp1.161.114.697 menjadi sumber dana
program bina lingkungan tahun 2016 dan diakui
sebagai pendapatan lainnya di Laporan Aktivitas.
During 2015, realization for fund distribution for
community development program amounted to
Rp72,410,726,781 and operational expenses is
Rp8,428,158,522. Therefore, the remaining funds
is Rp1,161,114,697 become the source of funds for
community development program in 2016 and
recognizes as other income in the Statement of
Activities.
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 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
10. ANGSURAN BELUM TERIDENTIFIKASI
10. UNIDENTIFIED INSTALLMENTS
Saldo Awal
Teridentifikasi selama tahun berjalan
Angsuran tahun berjalan yang belum
teridentifikasi
Saldo Akhir
31 Desember/December 31,
2016
2015
467.059.449
(366.782.723)
121.047.323
(141.876.560)
448.996.224
487.888.686
Beginning Balance
Identified during the year
Unidentified Installment
during the year
549.272.950
467.059.449
Ending Balance
11. KELEBIHAN PEMBAYARAN ANGSURAN
11. OVERPAYMENT OF INSTALLMENTS
31 Desember/December 31,
2016
2015
Kelebihan Pembayaran Angsuran
160.352.992
158.652.706
Overpayment of Installments
12. UTANG LAIN - LAIN
12. OTHER PAYABLE
Rincian utang lain-lain pada tanggal 31 Desember
2016 dan 2015 adalah sebagai berikut:
Detail of other payable as of December 31, 2016
and 2015 are as follows:
PT Finnet Indonesia
PT PINS Indonesia
Saldo Akhir
31 Desember/December 31,
2016
2015
25.000.000
-
12.500.000
107.046.500
25.000.000
119.546.500
PT Finnet Indonesia
PT PINS 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,
represents
for
procurement
community development funds distribution.
transactions
PT Finnet Indonesia
PT Finnet Indonesia
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
monthly
receives
Rp12,500,000 each month as collection fee.
installment.
Finnet
PT
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.
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 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
13. ASET NETO
13. NET ASSETS
31 Desember/December 31,
2016
2015
Aset Neto Tidak Terikat
Aset Neto Terikat
(631.873.798.727) (571.428.772.792)
-
-
Unrestricted Net Assets
Restricted Net Assets
Jumlah
(631.873.798.727) (571.428.772.792)
Total
Mutasi Aset Neto
Movement of Net Asset
31 Desember/December 31,
2016
2015
Aset Neto Tidak Terikat
Unrestricted Net Asset
Aset Neto Tidak Terikat - Awal Tahun
Penurunan Aset Neto Tidak Terikat
571.428.772.792 584.874.399.174
(13.445.626.382)
60.445.025.935
Unrestricted Net Asset - Beginning of Year
Decrease in Unrestricted Net Asset profit
Aset Neto Tidak Terikat - Akhir Tahun
631.873.798.727
571.428.772.792
Unrestricted Net Asset - End of Year
14. PENERIMAAN DARI BUMN PEMBINA
14. REVENUE FROM FOSTER SOE
Sesuai keputusan Rapat Umum Pemegang Saham
Tahunan (RUPST) PT Telekomunikasi Indonesia
(Persero) Tbk (“Perseroan”) tanggal 22 April 2016,
telah ditetapkan besaran dana Program Bina
Lingkungan Telkom Group
tahun buku 2016
sebesar Rp82.000.000.000 atau 0,53% dari laba
bersih Perseroan tahun buku 2015 yang sumber
dananya berasal dari beban Perseroan.
Indonesia
(RUPST)
(Persero) Tbk
In accordance with the decision of Shareholders'
PT
Annual General Meeting
Telekomunikasi
(the
“Company”) on April 22, 2016, the amount of funds
for Telkom Group Community Development
Program 2016 was Rp82,000,000,000 or 0.53% of
the net income for the financial year 2015 in which
the funds are from the expense of the Company.
nomor
Direksi
Peraturan
Berdasarkan
PD.309.00/r.00/HK230/COP-I3000000/2015
tanggal 18 Desember 2015 tentang Rencana Kerja
dan Anggaran, telah ditetapkan anggaran Bina
LIngkungan adalah sebesar Rp82.000.000.000.
berasal
Sumber
Telkom
dana
Rp41.000.000.000
Telkomsel
dan
Rp41.000.000.000. Dana dari Telkom dan
Telkomsel
tunai masing-masing
sebesar Rp41.000.000.000 dan Rp20.000.000.000.
Sisa dana sebesar Rp21.000.000.000 berupa
kegiatan yang telah dilaksanakan oleh Telkomsel
yang dialihkan kepada CDC.
telah diterima
dari
dari
on
the
Directors
Based
Regulations
PD.309.00/r.00/HK230/COP-I3000000/2015 dated
December 18, 2015 regarding the Work Plan and
Budget, budget of Community Development
Program is Rp82,000,000,000. The source of funds
are from Telkom for Rp41,000,000,000 and from
Telkomsel
from
received of
Telkom and Telkomsel were
Rp41,000,000,000
Rp20,000,000,000,
and
respectively. The remaining of Rp21,000,000,000
were Community development programs conducted
by Telkomsel which were transferred to CDC.
for Rp41,000,000,000. Funds
tidak
Efektif 1 Januari 2013, terkait dengan implementasi
PER-08/MBU/2013, CDC
lagi mencatat
alokasi dana BUMN Pembina sebagai pendapatan
CDC. Setelah diterbitkannya PER-09/MBU/07/2015
yang mulai berlaku tanggal 3 Juli 2015, CDC masih
mencatat alokasi dana BUMN Pembina selama
periode transisi (hingga tanggal 31 Desember
2015).
in relation
Effective January 1, 2013,
to the
implementation of PER-08/MBU/2013, CDC no
longer recognizing allocated income from Foster
SOE as revenue of CDC. After the issuance of
PER-09/MBU/07/2015 which effectively applied
from July 3, 2015, CDC still used the same policy
during transitional period (until December 31,
2015).
Di tahun 2016, berdasarkan PER-09/MBU/07/2015,
CDC mencatat alokasi dana dari BUMN Pembina
sebagai pendapatan di Laporan Aktivitas.
In 2016, based on PER-09/MBU/07/2015, CDC
recognized the fund allocation for the Foster SOE
as revenue in the Statement of Activities.
26
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 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,
2016
2015
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
257.557.486
4.376.192.376
4.607.937.527
5.396.954.184
4.151.961.960
6.609.937.170
4.114.213.402
2.755.178.703
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
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
32.269.932.808
17.874.573.518
Total
16. PENDAPATAN BUNGA
16. INTEREST INCOME
a. Program Kemitraan
a. Partnership Program
Jasa Giro
Deposito
Jumlah
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2016
2015
895.534.687
-
1.228.105.856
338.597.266
895.534.687
1.566.703.122
b. Bina Lingkungan
b. Community Development
Jasa Giro
Deposito
Jumlah
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2016
2015
1.719.253.436
-
1.111.408.005
1.936.865.578
1.719.253.436
3.048.273.583
17. PENDAPATAN LAIN-LAIN
17. OTHER INCOME
Current Account
Deposits
Total
Current Account
Deposits
Total
Pendapatan dari sisa dana
Program BUMN Peduli
Lainnya
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2016
2015
18.882.961.931
1.161.114.697
21.206.191
10.000.000
20.044.076.628
31.206.191
27
Income from remaining fund of
SOE Care program
Others
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 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,
2016
2015
-
-
-
-
3.061.151.199
2.929.825.648
23.500.000
6.014.476.847
Exhibition/ Promotion
Training
Development
Total
terkait
dengan
Efektif 3 Juli 2015 sampai dengan 31 Desember
2016,
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 dengan 2 Juli 2015. Selama
tersebut dicatat sebagai
2016, beban-beban
bantuan peningkatan kapasitas mitra binaan
program kemitraan sebagai bagian dari penyaluran
dana bina lingkungan (Catatan 19).
to
the
implementation
Effective July 3, 2015 until December 31, 2016, in
relation
of PER-
09/MBU/07/2015, fostering partnership expenses
of CDC were recognized by Foster SOE (Note 3a
and 19), therefore CDC only recorded fostering
partnership expenses for period January 1, 2015
until July 2, 2015. During 2016, such expenses
recorded as capacity improvement donation to
foster partners as part of community development
funds distribution (Note 19).
19. PENYALURAN DANA BINA LINGKUNGAN
19. COMMUNITY
DEVELOPMENT
FUNDS
DISTRIBUTION
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2016
2015
Bantuan Bina Lingkungan
Bantuan Pendidikan dan/atau Pelatihan
Bantuan Pengembangan Prasarana
dan/ atau Sarana Umum
Bantuan Sarana Ibadah
Bantuan Peningkatan Kesehatan
Bantuan Peningkatan Kapasitas Mitra
Binaan Program Kemitraan
Bantuan Pengentasan Kemiskinan
Bantuan Korban Bencana Alam
Bantuan Pelestarian Alam
Jumlah Program Bantuan
Bina Lingkungan
35.682.026.990
13.367.649.200
10.615.321.340
10.414.976.500
8.394.233.850
1.641.990.000
941.871.265
911.382.500
81.969.451.645
Community Development Donation
Education and/or Training Donation
Improvement for Facility and/or
Public Facility Donation
Religion Facility Donation
Healthcare Improvement Donation
Capacity Improvement Donation
to Foster Partners
Poverty Alleviation
Nature Disaster Victims Donation
Natural Preservation Donation
Total Community Development Program
-
-
-
-
-
-
-
-
-
tidak
Efektif 1 Januari 2013, terkait dengan implementasi
PER-08/MBU/2013, CDC
lagi mencatat
penyaluran dana bina lingkungan sebagai beban
CDC (Catatan 3a). Implementasi ketentuan ini
masih diterapkan oleh CDC hingga masa transisi
pemberlakuan PER-09/MBU/07/2015 (hingga 31
Desember 2015).
in relation
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). CDC still
treated the same until the end of transitional period
of PER-09/MBU/07/2015 (until December 31,
2015).
Di tahun 2016, CDC mencatat penyaluran dana
bina lingkungan sebagai beban CDC (Catatan 3a).
In 2016, CDC recognized community development
funds distribution as expense of CDC (Note 3a).
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 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
19. PENYALURAN DANA BINA LINGKUNGAN
19. COMMUNITY
DEVELOPMENT
FUNDS
(lanjutan)
DISTRIBUTION (continued)
Selama tahun 2015, CDC atas nama dan untuk
telah melakukan
kepentingan Grup Telkom,
lingkungan untuk
penyaluran program bina
berbagai kegiatan. Penyaluran bina lingkungan
sebesar Rp72.410.726.781. Penyaluran bina
lingkungan dan beban operasional yang tidak
termasuk ke dalam laporan keuangan CDC adalah
sebagai berikut:
During 2015, CDC on behalf of and for the benefit
of Telkom Group has distributed community
funds. Community
programs
development
is Rp72,410,726,781.
development distribution
Community development distribution and
its
operational expense which are not included in
CDC’s financial statements as are follows:
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2016
2015
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 Kemiskinan
Jumlah Program Bantuan
Bina Lingkungan
Beban Operasional
Program Kemitraan
Program Bina Lingkungan
Jumlah
41.150.756.851
15.734.881.300
8.467.194.000
3.525.756.880
1.467.383.000
1.305.604.750
750.150.000
9.000.000
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 Alleviation
72.410.726.781
Total Community Development Program
6.995.965.895
1.432.192.627
80.838.885.303
Operational Expense
Partnership program
Community Development program
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
Jumlah
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.
-
-
-
-
29
939.110.018
845.059.144
505.711.483
Foster Partners Monitoring Expenses
Loan Collection Expenses
Foster Partners Survey Expenses
2.289.880.645
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
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 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,
2016
2015
Program Kemitraan
-
5.584.101.195
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,
2016
2015
Program Kemitraan
-
1.436.320.910
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
rent
implementation of PER-09/MBU/07/2015,
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
Pihak-pihak berelasi/
Related parties
Transaksi/
Transaction
`
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
Entitas sepengendali
PT Telekomunikasi Indonesia Tbk/
Under common control of
PT Telekomunikasi Indonesia Tbk
PT Telekomunikasi Indonesia
(Persero) Tbk.
PT Graha Sarana Duta
PT Infomedia Nusantara
PT Pins Indonesia
30
Pengalokasian pendapatan program
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
Penyedia perangkat CPE
(Customer Premises
Equipment)/
CPE (Customer Premises Equipment) 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 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
23. TRANSAKSI DAN SALDO DENGAN PIHAK
23. TRANSACTIONS AND BALANCES WITH
BERELASI (lanjutan)
RELATED PARTIES (continued)
`
Hubungan/
Relation
Pihak-pihak berelasi/
Related parties
Transaksi/
Transaction
Entitas sepengendali
PT Telekomunikasi Indonesia Tbk/
Under common control of
PT Telekomunikasi Indonesia Tbk
PT Metra Digital Media
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
Perusahaan dibawah entitas
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
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
PT Bank Negara Indonesia
(Persero) Tbk
PT Bank Rakyat Indonesia
(Persero) Tbk
Penyedia bantuan dana pelatihan
Internet/ Fund provider for
Internet training program
Penyedia dana untuk transaksi
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
PT Finnet Indonesia
Penyedia jasa virtual account/ Provider
of virtual accounts
PT Perkebunan Nusantara VIII
Penerima Program BUMN Peduli/
Recipient of SOE Care
PT Pos Indonesia
Penerima Program BUMN Peduli/
Recipient of SOE Care
PT Industri Nuklir Indonesia (Persero)
dahulu/formerly PT Batan Teknologi
(Persero)
Penerima Program BUMN Peduli/
Recipient of SOE Care
Perum Perumnas
PT Perhutani
Penerima Program BUMN Peduli/
Recipient of SOE Care
Penerima Program BUMN Peduli/
Recipient of SOE Care
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 2016 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, 2016 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.
Program Bina Lingkungan
Kas di bank
PT Bank Mandiri (Persero) Tbk.
PT Bank Negara Indonesia
(Persero) Tbk.
Jumlah kas dan setara kas
pada pihak afiliasi
Pinjaman kepada BUMN Pembina
Lain/ Lembaga Penyalur (Catatan 5)
PT Sang Hyang Seri (Persero)
Jumlah pinjaman
31 Desember/December 31,
2016
2015
4.749.061.270
7.002.145.427
1.346.644.253
5.252.077.147
6.095.705.523
12.254.222.574
108.199.543.458 107.257.334.628
Assets
Cash and Cash Equivalents (Note 4)
Partnership Program
Cash in banks
PT Bank Mandiri (Persero) Tbk.
PT Bank Negara Indonesia
(Persero) Tbk.
Community Development Program
Cash in banks
PT Bank Mandiri (Persero) Tbk.
PT Bank Negara Indonesia
2.678.452
887.773
(Persero) Tbk.
108.202.221.910
107.258.222.401
114.297.927.433
119.512.444.975
-
-
9.637.740.363
9.637.740.363
Total cash and cash equivalent
in affiliated parties
Loan to Other Foster SOE
or Distributing Partners (Note 5)
PT Sang Hyang Seri (Persero)
Total loan
Jumlah aset pada pihak afiliasi
114.297.927.433
129.150.185.338
Total assets in affiliated parties
Jumlah aset
632.608.424.669
583.146.978.502
Total assets
Sebagai prosentase terhadap
jumlah aset
18,06%
22,14%
As percentage to total assets
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
Jumlah liabilitas lancar lainnya
31 Desember/December 31,
2016
2015
5.691.103.171
3.371.533.422
1.161.114.697
489.694.586
259.501.179
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
10.972.947.055
Total other current liabilities
-
-
-
-
-
-
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 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
23. TRANSAKSI DAN SALDO DENGAN PIHAK
23. TRANSACTIONS AND BALANCES WITH
BERELASI (lanjutan)
RELATED PARTIES (continued)
Utang lain- lain (Catatan 12)
PT Finnet Indonesia
PT PINS Indonesia
31 Desember/December 31,
2016
2015
25.000.000
-
12.500.000
107.046.500
Other Payable (Note 12)
PT Finnet Indonesia
PT PINS Indonesia
Jumlah utang lain-lain
25.000.000
119.546.500
Total other payable
Jumlah liabilitas pihak afiliasi
25.000.000
11.092.493.555
Total liabilities in afffiliated parties
Jumlah liabilitas
734.625.942
11.718.205.710
Total liabilities
Sebagai prosentase terhadap
jumlah liabilitas
3,40%
94,66%
As percentage to total liabilities
Beban
Program Kemitraan
PT Infomedia Nusantara
PT Finnet
Jumlah
Jumlah beban operasional
pihak afiliasi
31 Desember/December 31,
2016
2015
-
-
-
-
3.845.488.368
150.000.000
3.995.488.368
3.995.488.368
Expenses
Partnership Program
PT Infomedia Nusantara
PT Finnet
Total
Total operational expense
in affiliated parties
Jumlah beban
76.483.771.624
35.966.382.796
Total expense
Sebagai prosentase terhadap
jumlah beban
0%
11,1%
As percentage to total expense
31 Desember/December 31,
2016
2015
Pendapatan
Program Kemitraan
Penerimaan dari BUMN Pembina
82.000.000.000
82.000.000.000
-
-
Revenue
Partnership Program
Revenue from Foster SOE
Interest from Deposits
PT Bank Rakyat Indonesia
(Persero) Tbk
PT Bank Mandiri (Persero) Tbk
Total Interest from Deposits
Interest from Current Account
-
-
-
284.400.006
54.197.260
338.597.266
Pendapatan Bunga Deposito
PT Bank Rakyat Indonesia
(Persero) Tbk
PT Bank Mandiri (Persero) Tbk
Jumlah pendapatan bunga deposito
Pendapatan Jasa Giro
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia
(Persero) Tbk
741.719.836
1.072.334.546
153.814.851
155.771.310
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia
(Persero) Tbk
Jumlah pendapatan jasa giro
895.534.687
1.228.105.856
Total interest from current account
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 2016 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, 2016 and
Year then Ended
(Expressed in Rupiah)
23. TRANSAKSI DAN SALDO DENGAN PIHAK
23. TRANSACTIONS AND BALANCES WITH
BERELASI (lanjutan)
RELATED PARTIES (continued)
Program Bina Lingkungan
Pendapatan Bunga Deposito
PT Bank Negara Indonesia
(Persero) Tbk
PT Bank Mandiri (Persero) Tbk
Jumlah pendapatan bunga deposito
Pendapatan Jasa Giro
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia
(Persero) Tbk
Tahun yang Berakhir pada
Tanggal 31 Desember/
Year Ended December 31,
2016
2015
-
-
-
109.917.807
21.304.109
131.221.916
1.719.253.436
1.107.748.983
-
3.659.022
Community Development Program
Revenue from Deposits
PT Bank Negara Indonesia
(Persero) Tbk
PT Bank Mandiri (Persero) Tbk
Total interest from deposits
Interest from Current Account
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia
(Persero) Tbk
Jumlah pendapatan jasa giro
1.719.253.436
1.111.408.005
Total Interest from current account
Pendapatan Lain-lain
20.044.076.628
21.206.191
Other Income
Jumlah pendapatan dari pihak afiliasi
104.693.889.142
2.830.539.234
Total revenues from affiliated parties
Jumlah pendapatan
137.084.809.234
22.520.756.414
Total revenue
Sebagai prosentase terhadap
jumlah pendapatan
76,31%
12,57%
As percentage to total revenue
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
jumlah dana yang
dengan cara membagi
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.
34
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
The effectiveness of
is
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
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK
PUSAT PENGELOLAAN PROGRAM KEMITRAAN
DAN PROGRAM BINA LINGKUNGAN
(COMMUNITY DEVELOPMENT CENTER)
CATATAN ATAS LAPORAN KEUANGAN
31 Desember 2016 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, 2016 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)
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)
Saldo Awal Kas dan Setara Kas
Program Kemitraan
Pengembalian Pinjaman Mitra Binaan
(Catatan 24)
Pendapatan Jasa Administrasi
Pinjaman (Catatan 15)
Tahun yang
Berakhir
pada Tanggal
31 Desember 2016/
Year ended
December 31, 2016
360.920.800.000
-
360.920.800.000
22.049.736.381
312.218.727.891
32.269.932.808
366.538.397.080
Fund Distribution
Amount of Distribution
(Note 24)
Fostering Partnership Funds
(Note 18, 24)
Beginning Balance for Cash and Cash Equivalent
of Partnership Program
Loan Repayments from Foster Partners
(Note 24)
Loan Administration Service Income
(Note 15)
Tingkat efektivitas penyaluran
Level of the effectiveness of the loan distribution
(prosentase distribusi dana
terhadap dana yang tersedia) 98,47%
(percentage of fund distribution to
available fund)
Skor tingkat efektivitas penyaluran
pinjaman
3
distribution
Score of level of the effectiveness of the loan
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
kolektibilitas pengembalian pinjaman yang
kemungkinan
mana memberi
tertagihnya
Tingkat
pinjaman
kolektibilitas
merupakan perbandingan antara
rata-rata
terhadap
tertimbang kolektibilitas pinjaman
jumlah pinjaman yang disalurkan
(saldo
pinjaman). Rata-rata tertimbang kolektibilitas
pinjaman adalah perkalian antara bobot
kolektibilitas
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
funds with
weighted average collectibility
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%)
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 2016 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, 2016 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)
Skor tingkat kolektibilitas pengembalian pinjaman
adalah sebagai berikut:
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 2016 adalah sebagai berikut:
Weighted average amount of the collectibility of the
loan as of December 31, 2016 is as follows:
Kualitas Pinjaman
Saldo pinjaman
(Catatan 6e)
(tidak diaudit)/
Loan balance
(Note 6e)
(unaudited)
2.942.482.190.207
Lancar
127.110.480.096
Kurang Lancar
40.875.922.000
Diragukan
332.148.894.359
Macet
Jumlah
3.442.617.486.662
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%
88,54%
Jumlah rata-rata
tertimbang/
Weighted Average
Amount
Loan Quality
2.942.482.190.207
95.332.860.072
10.218.980.500
-
3.048.034.030.779
Current
Substandard
Doubtful
Troubled
Total
Loan repayment collectibility level
(percentage of weighted average loan
collectibility to loan distribution)
3
Score of repayments collectibility level
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 2016 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, 2016 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,
2016
2015
AKTIVITAS OPERASI
Penerimaan Dana BUMN Pembina
Pengembalian Pinjaman Mitra Binaan
Angsuran Belum Teridentifikasi
Pembayaran Utang
Pendapatan Jasa Administrasi
61.000.000.000
82.000.000.000
312.218.727.891 267.227.495.235
346.012.126
(1.227.348.500)
(366.782.723)
-
OPERATING ACTIVITIES
Fund Received from Foster SOE
Loan Repayments from Foster Partners
Unidentified Installments
Payable Payment
Pinjaman
Pendapatan Bunga
Penyaluran Pinjaman
Penyaluran Bina Lingkungan
Dana Pembinaan Kemitraan
Pendapatan Lain-lain
Beban Pembinaan
Beban Administrasi dan Umum
Pembayaran Beban Sewa
Restitusi kepada Mitra Binaan
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
32.269.932.808
2.614.788.123
29.443.919.585
4.614.976.705
(360.920.800.000) (340.959.090.000)
Loan Administration Service Income
Interest Income
Loan Distribution
(80.838.885.303) Community Development Fund Distribution
Fostering Partnership Funds
(6.014.476.847)
Other Revenue
9.811.832.358
Empowerment Expenses
(2.289.880.645)
General and Administration Expenses
(5.584.101.195)
Payment of Rent Expenses
(1.436.320.910)
Refund to Foster Partners
(52.918.714)
(60.964.531.645)
-
9.071.129.573
-
-
-
(136.981.569)
(5.214.517.542) (44.958.786.105)
(5.214.517.542) (44.958.786.105)
119.512.444.975 164.471.231.080
114.297.927.433 119.512.444.975
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
37