Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Share capital | |
Entity Registrant Name | PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK |
Entity Central Index Key | 0001001807 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Series A Dwiwarna Share | |
Share capital | |
Entity Common Stock, Shares Outstanding | 1 |
Series B shares | |
Share capital | |
Entity Common Stock, Shares Outstanding | 99,062,216,599 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 1,212 | Rp 17,435 | Rp 25,145 |
Other current financial assets | 91 | 1,314 | 2,173 |
Trade and other receivables | 690 | 9,928 | 9,564 |
Contract assets | 108 | 1,560 | |
Inventories | 50 | 717 | 631 |
Prepaid income taxes | 1 | 20 | 22 |
Prepaid other taxes | 231 | 3,325 | 2,833 |
Assets held for sale | 24 | 340 | 10 |
Contract costs | 64 | 924 | |
Other current assets | 506 | 7,280 | 7,183 |
Total Current Assets | 2,977 | 42,843 | 47,561 |
NON-CURRENT ASSETS | |||
Long-term investments | 185 | 2,662 | 2,148 |
Property and equipment | 9,938 | 142,912 | 129,872 |
Intangible assets | 350 | 5,032 | 3,530 |
Deferred tax assets | 172 | 2,477 | 2,804 |
Contract costs | 22 | 320 | |
Other non-current assets | 672 | 9,654 | 12,270 |
Total Non-current Assets | 11,339 | 163,057 | 150,624 |
TOTAL ASSETS | 14,316 | 205,900 | 198,185 |
CURRENT LIABILITIES | |||
Trade and other payables | 1,058 | 15,214 | 15,791 |
Current income tax liabilities | 28 | 404 | 801 |
Other tax liabilities | 54 | 776 | 1,989 |
Accrued expenses | 888 | 12,769 | 12,630 |
Unearned income | 5,427 | ||
Contract liabilities | 365 | 5,252 | 5,427 |
Advances from customers | 109 | 1,568 | 1,240 |
Short-term bank loans and current maturities of long-term borrowings | 719 | 10,339 | 7,498 |
Total Current Liabilities | 3,221 | 46,322 | 45,376 |
NON-CURRENT LIABILITIES | |||
Deferred tax liabilities | 83 | 1,197 | 933 |
Unearned income | 524 | ||
Contract liabilities | 45 | 652 | 524 |
Long service award provisions | 59 | 852 | 758 |
Pension benefits and other post-employment benefit obligations | 386 | 5,555 | 10,195 |
Long-term loans and other borrowings | 2,347 | 33,743 | 27,974 |
Other liabilities | 40 | 573 | 594 |
Total Non-current Liabilities | 2,960 | 42,572 | 40,978 |
TOTAL LIABILITIES | 6,181 | 88,894 | 86,354 |
EQUITY | |||
Capital stock | 344 | 4,953 | 5,040 |
Additional paid-in capital | 137 | 1,977 | 4,453 |
Treasury stock | (2,541) | ||
Retained earnings | 6,362 | 91,488 | 85,285 |
Other reserves | 22 | 321 | 230 |
Net equity attributable to owners of the parent company | 6,865 | 98,739 | 92,467 |
Non-controlling Interests | 1,270 | 18,267 | 19,364 |
TOTAL EQUITY | 8,135 | 117,006 | 111,831 |
TOTAL LIABILITIES AND EQUITY | $ 14,316 | Rp 205,900 | Rp 198,185 |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2018IDR (Rp)Rp / shares | Dec. 31, 2017IDR (Rp)Rp / shares | Dec. 31, 2016IDR (Rp)Rp / shares | |
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||
REVENUES | $ 9,095 | Rp 130,788 | Rp 128,256 | Rp 116,333 |
Operation, maintenance and telecommunication service expenses | (3,052) | (43,893) | (36,603) | (31,263) |
Depreciation and amortization | (1,491) | (21,442) | (20,477) | (18,556) |
Personnel expenses | (916) | (13,178) | (13,529) | (13,612) |
Marketing expenses | (278) | (4,001) | (5,268) | (4,132) |
General and administrative expenses | (459) | (6,594) | (5,260) | (4,610) |
Interconnection expenses | (298) | (4,283) | (2,987) | (3,218) |
Gain (loss) on foreign exchange - net | 5 | 71 | 51 | (52) |
Other income | 121 | 1,745 | 1,039 | 751 |
Other expenses | (47) | (680) | (1,320) | (2,469) |
OPERATING PROFIT | 2,680 | 38,533 | 43,902 | 39,172 |
Finance income | 71 | 1,014 | 1,434 | 1,716 |
Finance costs | (245) | (3,523) | (2,769) | (2,810) |
Share of profit of associated companies | 4 | 53 | 61 | 88 |
Profit before income tax | 2,510 | 36,077 | 42,628 | 38,166 |
INCOME TAX (EXPENSE) BENEFIT | ||||
Current | (656) | (9,432) | (11,357) | (10,738) |
Deferred | 4 | 66 | 1,399 | 1,721 |
Net Income Tax Expense | (652) | (9,366) | (9,958) | (9,017) |
Profit for the year from continuing operations | 1,858 | 26,711 | 32,670 | 29,149 |
Other comprehensive income to be reclassified to profit or loss in subsequent periods: | ||||
Foreign currency translation | 10 | 148 | 24 | (40) |
Net gain on available-for-sale financial assets | 20 | 0 | ||
Share of other comprehensive income of associated companies | (1) | (14) | (1) | (1) |
Other comprehensive income not to be reclassified to profit or loss in subsequent periods: | ||||
Defined benefit plan actuarial gain (loss) - net of tax | 335 | 4,820 | (2,375) | (2,058) |
Other Comprehensive Income - net | 344 | 4,954 | (2,332) | (2,099) |
Net comprehensive income for the year | 2,202 | 31,665 | 30,338 | 27,050 |
Profit for the year attributable to: | ||||
Owners of the parent company | 1,238 | 17,802 | 22,120 | 19,333 |
Non-controlling interests | 620 | 8,909 | 10,550 | 9,816 |
Profit for the year from continuing operations | 1,858 | 26,711 | 32,670 | 29,149 |
Net comprehensive income for the year attributable to: | ||||
Owners of the parent company | 1,573 | 22,631 | 19,927 | 17,312 |
Non-controlling interests | 629 | 9,034 | 10,411 | 9,738 |
Net comprehensive income for the year | $ 2,202 | Rp 31,665 | Rp 30,338 | Rp 27,050 |
BASIC AND DILUTED EARNINGS PER SHARE (in full amount) | ||||
Profit per share | (per share) | $ 0.01 | Rp 179.71 | Rp 223.30 | Rp 195.99 |
Profit per ADS (100 Series B shares per ADS) | (per share) | $ 1.25 | Rp 17,970.52 | Rp 22,329.40 | Rp 19,599.85 |
CONSOLIDATED STATEMENTS OF PR_2
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Parenthetical) - item | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Number of Series B Shares in each American Depository Shares After Stock Split | 100 | 100 | 100 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY $ in Millions, Rp in Billions | Attributable to owners of the parent companyIDR (Rp) | Capital stockIDR (Rp) | Additional paid-in capitalIDR (Rp) | Treasury stockIDR (Rp) | Retained earningsIDR (Rp) | Other reservesIDR (Rp) | Non-controlling interestsIDR (Rp) | USD ($) | IDR (Rp) |
Balance at Dec. 31, 2015 | Rp 74,934 | Rp 5,040 | Rp 2,457 | Rp (3,804) | Rp 70,893 | Rp 348 | Rp 18,249 | Rp 93,183 | |
Net comprehensive income for the year | |||||||||
Profit for the year | 19,333 | 19,333 | 9,816 | 29,149 | |||||
Other comprehensive income net | (2,021) | (1,980) | (41) | (78) | (2,099) | ||||
Net comprehensive income for the year | 17,312 | 17,353 | (41) | 9,738 | 27,050 | ||||
Transactions with owners recorded directly in equity | |||||||||
Cash dividends | (11,213) | (11,213) | (7,058) | (18,271) | |||||
Sale of treasury stock | 3,259 | 1,996 | 1,263 | 3,259 | |||||
Acquisition of a business | 10 | 10 | |||||||
Acquisition of non-controlling interests | (129) | (129) | (9) | (138) | |||||
Issuance of new shares of subsidiary | 183 | 183 | |||||||
Net transactions with owners | (8,083) | 1,996 | 1,263 | (11,213) | (129) | (6,874) | (14,957) | ||
Balance at Dec. 31, 2016 | 84,163 | 5,040 | 4,453 | (2,541) | 77,033 | 178 | 21,113 | 105,276 | |
Net comprehensive income for the year | |||||||||
Profit for the year | 22,120 | 22,120 | 10,550 | 32,670 | |||||
Other comprehensive income net | (2,193) | (2,241) | 48 | (139) | (2,332) | ||||
Net comprehensive income for the year | 19,927 | 19,879 | 48 | 10,411 | 30,338 | ||||
Transactions with owners recorded directly in equity | |||||||||
Cash dividends | (11,627) | (11,627) | (12,355) | (23,982) | |||||
Acquisition of a business | 4 | 4 | 145 | 149 | |||||
Issuance of new shares of subsidiary | 50 | 50 | |||||||
Net transactions with owners | (11,623) | (11,627) | 4 | (12,160) | (23,783) | ||||
Balance at Dec. 31, 2017 | 92,467 | 5,040 | 4,453 | (2,541) | 85,285 | 230 | 19,364 | 111,831 | |
Net comprehensive income for the year | |||||||||
Profit for the year | 17,802 | 17,802 | 8,909 | $ 1,858 | 26,711 | ||||
Other comprehensive income net | 4,829 | 4,695 | 134 | 125 | 344 | 4,954 | |||
Net comprehensive income for the year | 22,631 | 22,497 | 134 | 9,034 | 2,202 | 31,665 | |||
Transactions with owners recorded directly in equity | |||||||||
Cash dividends | (16,609) | (16,609) | (10,131) | (26,740) | |||||
Cancellation of treasury stocks | (87) | (2,454) | 2,541 | ||||||
Acquisition of a business | 65 | 65 | |||||||
Acquisition of non-controlling interests | (38) | (22) | (16) | (69) | (107) | ||||
Issuance of new shares of subsidiary | 34 | 34 | |||||||
Net transactions with owners | (16,647) | (87) | (2,476) | Rp 2,541 | (16,609) | (16) | (10,101) | (26,748) | |
Balance at Dec. 31, 2018 | 98,739 | Rp 4,953 | Rp 1,977 | 91,488 | 321 | 18,267 | $ 8,135 | 117,006 | |
Effect of adoption of new accounting standards | Rp 288 | Rp 315 | Rp (27) | Rp (30) | Rp 258 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Cash receipts from customers and other operators | $ 8,891 | Rp 127,855 | Rp 125,111 | Rp 116,116 |
Cash receipts from tax refund | 179 | 2,578 | 585 | |
Cash receipts from finance income | 72 | 1,036 | 1,431 | 1,736 |
Cash payments for expenses | (3,762) | (54,099) | (49,604) | (42,433) |
Cash payments to employees | (880) | (12,657) | (11,739) | (11,207) |
Cash payments for corporate and final income taxes | (721) | (10,375) | (11,846) | (11,304) |
Cash payments for finance costs | (260) | (3,735) | (3,133) | (3,455) |
Cash payments for Value Added Taxes - net | (239) | (3,434) | (1,942) | (2,696) |
Cash payments for (receipts from) other - net | (104) | (1,498) | 542 | 474 |
Net cash provided by operating activities | 3,176 | 45,671 | 49,405 | 47,231 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from sale of property and equipment | 44 | 629 | 1,367 | 765 |
Proceeds from (placement in) other current financial assets - net | 12 | 171 | (676) | (983) |
Proceeds from insurance claims | 11 | 153 | 155 | 60 |
Dividend received from associated company | 1 | 9 | 28 | 23 |
Proceeds from escrow accounts | 2,159 | |||
Acquisition of non-controlling interest in a subsidiary | (138) | |||
Purchases of property and equipment | (2,195) | (31,562) | (32,294) | (26,787) |
Purchases of intangible assets | (207) | (2,972) | (508) | (1,098) |
Acquisition of businesses, net of acquired cash | (29) | (420) | (243) | (137) |
Acquisition of long-term investments | (23) | (337) | (269) | (43) |
Payments for advances for purchases of property and equipment | (21) | (300) | (490) | (1,338) |
Purchases of other assets | (32) | (461) | (77) | (40) |
Net cash used in investing activities | (2,439) | (35,090) | (33,007) | (27,557) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from loans and other borrowings | 2,459 | 35,364 | 12,169 | 7,479 |
Proceeds from issuance of new shares of subsidiaries | 2 | 34 | 50 | 183 |
Proceeds from sale of treasury stock | 3,259 | |||
Repayments of loans and other borrowings | (1,885) | (27,113) | (9,289) | (10,555) |
Cash dividends paid to the Company’s stockholders | (1,155) | (16,609) | (11,627) | (11,213) |
Cash dividends paid to non-controlling interests of subsidiaries | (705) | (10,134) | (12,355) | (7,058) |
Net cash used in financing activities | (1,284) | (18,458) | (21,052) | (17,905) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (547) | (7,877) | (4,654) | 1,769 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 12 | 171 | 32 | (119) |
PROVISION FOR EXPECTED CREDIT LOSSES ON CASH AND CASH EQUIVALENTS | 0 | (4) | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,747 | 25,145 | 29,767 | 28,117 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 1,212 | Rp 17,435 | Rp 25,145 | Rp 29,767 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
GENERAL | |
GENERAL | 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 21). 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 amendments of which were about increase the flexibility and independency of Commissioners in approving the Directors’ actions at a certain threshold and changes in authorized and issued capital stocks due to the transfer of total shares of cancelation treasury stocks by deducting from equity as stated in notarial deed No. 34 and No. 35 dated May 15, 2018 of Ashoya Ratam, S.H., MKn. The latest amendments were accepted and approved by the Ministry of Law and Human Rights of the Republic of Indonesia (“MoLHR”) in its Letter No. AHU-AH.01.03-0214555 dated June 8, 2018 and MoLHR decision’s No. AHU-0013328.AH.01.02 year 2018 dated July 2, 2018. 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 to provide high quality and competitive goods and/or services to gain/pursue profit in order to increase the value of the Company with applied the Limited Company principle. In regard to achieving its objectives, 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 or selling, and improving telecommunications and information services in a broad sense in accordance with prevailing regulations. iii. 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, repair 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. 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 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 is additional information required such as operational performance, customer segmentation, traffic, and gross revenue. Details of these licenses are as follows: License License No. Type of services Grant date/latest renewal date License of electronic money issuer Bank Indonesia License No. 11/432/DASP Electronic money July 3, 2009 License of money remittance Bank Indonesia License Money remittance service August 5, 2009 License to operate internet telephone services for public purpose 127/KEP/DJPPI/ KOMINFO/3/2016 Internet telephone services for public purpose March 30, 2016 License to operate fixed domestic long distance network 839/KEP/ M.KOMINFO/05/2016 Fixed domestic long distance and basic telephone services network May 16, 2016 License to operate fixed closed network 844/KEP/ M.KOMINFO/05/2016 Fixed closed network May 16, 2016 License to operate fixed international network 846/KEP/ M.KOMINFO/05/2016 Fixed international and basic telephone services network May 16, 2016 License to operate circuit switched based local fixed line network 948/KEP/ M.KOMINFO/05/2016 Circuit switched based local fixed line network May 31, 2016 License to operate data communication system services 191/KEP/DJPPI/ KOMINFO/10/2016 Data communication system services October 31, 2016 License to operate internet service provider 2176/KEP/ M.KOMINFO/12/2016 Internet service provider December 30, 2016 License to operate content service provider 1040/KEP/ M.KOMINFO/16/2017 Content service provider May 16, 2017 License for the implementation of internet Interconnection services 1004/KEP/ M.KOMINFO/2018 Interconnection services December 26, 2018 b. Company’s Board of Commissioners, Board of Directors, Audit Committee, Corporate Secretary, and Internal Audit 1. Boards of Commissioners and Directors Based on resolutions made at the Annual General Meeting (“AGM”) of Stockholders of the Company as covered by notarial deed No. 54 and No. 28 of Ashoya Ratam., S.H., M.Kn., dated April 27, 2018 and April 21, 2017, the composition of the Company’s Boards of Commissioners and Directors as of December 31, 2017 and 2018, respectively, were as follows: 2017 2018 President Commissioner Hendri Saparini Hendri Saparini Commissioner Rinaldi Firmansyah Edwin Hidayat Abdullah Commissioner Hadiyanto Rinaldi Firmansyah Commissioner — Isa Rachmatarwata Independent Commissioner Margiyono Darsasumarja Margiyono Darsasumarja Independent Commissioner* Dolfie Othniel Fredric Palit — Independent Commissioner Pamijati Pamela Johanna Pamijati Pamela Johanna Independent Commissioner Cahyana Ahmadjayadi Cahyana Ahmadjayadi President Director Alex Janangkih Sinaga Alex Janangkih Sinaga Director of Finance Harry Mozarta Zen Harry Mozarta Zen Director of Digital and Strategic Portfolio David Bangun David Bangun Director of Enterprise and Business Service Dian Rachmawan Dian Rachmawan Director of Wholesale and International Service Abdus Somad Arief Abdus Somad Arief Director of Human Capital Management Herdy Rosadi Harman Herdy Rosadi Harman Director of Network, Information Technology and Solution Zulhelfi Abidin Zulhelfi Abidin Director of Consumer Service Mas'ud Khamid Siti Choiriana * 2. Audit Committee, Corporate Secretary, and Internal Audit The composition of the Company’s Audit Committee, Corporate Secretary, and Internal Audit as of December 31, 2017 and 2018, were as follows: 2017 2018 Chairman Margiyono Darsasumarja Margiyono Darsasumarja Secretary Tjatur Purwadi Tjatur Purwadi Member Rinaldi Firmansyah Rinaldi Firmansyah Member Dolfie Othniel Fredric Palit — Member Sarimin Mietra Sardi Sarimin Mietra Sardi Member Cahyana Ahmadjayadi Cahyana Ahmadjayadi Corporate Secretary Andi Setiawan Andi Setiawan Internal Audit Harry Suseno Hadisoebroto Harry Suseno Hadisoebroto 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 was 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 Extraodinary General Meeting (“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 23). 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 23). At the AGM held on April 19, 2013 as covered by notarial deed No. 38 dated April 19, 2013 of Ashoya Ratam, S.H., M.Kn., the stockholders approved the changes to the Company’s plan on the treasury stock acquired under phase III (Note 23). At the AGM held on April 19, 2013, the minutes of which were covered by notarial deed No. 38 of Ashoya Ratam, S.H., M.Kn., 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 of 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 change the ratio of Depositary Receipt from 1 ADS representing 200 series B shares to become 1 ADS representing 100 series B shares (Note 21). 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, 2018, all of the Company’s Series B shares are listed on the IDX and 68,824,067 ADS shares are listed on the NYSE (Note 21). 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, which are listed on the IDX (Note 19b). 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 19b). On December 21, 2015, the Company sold the remaining shares of treasury shares phase III (Note 23). On June 29, 2016, the Company sold the treasury shares phase IV (Note 23). At the AGM held on April 27, 2018, which were covered by notarial deed No.54 of Ashoya Ratam, S.H., M.Kn., the stockholders approved for cancellation 1,737,779,800 shares of treasury stock and reduced the Company's capital stock (Note 23). d. Subsidiaries As of December 31, 2017 and 2018, the Company has consolidated the following directly or indirectly owned subsidiaries (Notes 2b and 2d): (i) Direct subsidiaries: Year of start of Subsidiary/place of commercial Percentage of ownership interest Total assets before elimination incorporation Nature of business operations 2017 2018 2017 2018 PT Telekomunikasi Seluler ( “Telkomsel” ), Jakarta, Indonesia Telecommunication - provides telecommunication facilities and mobile celuller services using Global Systems for Mobile Communication (“GSM”) technology 1995 65 65 85,597 82,219 PT Multimedia Nusantara ( “Metra” ) Jakarta, Indonesia Network telecommunication services and multimedia 1998 100 100 13,246 17,123 PT Dayamitra Telekomunikasi ( “Dayamitra” ) Jakarta, Indonesia Telecommunication 1995 100 100 13,606 13,221 PT Telekomunikasi Indonesia International ( “TII” ), Jakarta, Indonesia Telecommunication 1995 100 100 9,122 10,404 PT Graha Sarana Duta ( “GSD” ), Jakarta, Indonesia Leasing of offices and providing building management and maintenance services, civil consultant and developer 1982 100 100 5,633 5,794 PT Telkom Akses ( “Telkom Akses” ) Jakarta, Indonesia Construction, service and trade in the field of telecommunication 2013 100 100 5,716 4,244 PT PINS Indonesia ( “PINS” ), Jakarta, Indonesia Telecommunication construction and services 1995 100 100 3,473 4,004 PT Infrastruktur Telekomunikasi Indonesia (“ Telkom Infratel ”) , Jakarta, Indonesia Construction, service and trade in the field of telecommunication 2014 100 100 1,871 3,351 PT Telkom Satelit Indonesia (“ Telkomsat ”), previously PT Patra Telekomunikasi Indonesia Jakarta, Indonesia Telecommunication - provides satellite communication system, services and facilities 1996 100 100 574 3,190 PT Metra-Net (“ Metra-Net ”), Jakarta, Indonesia Multimedia portal service 2009 100 100 524 782 PT Jalin Pembayaran Nusantara (“ Jalin ”),Jakarta, Indonesia Payment services - principals, switching, clearing and settlement activities 2016 100 100 225 298 PT Napsindo Primatel Internasional ( “Napsindo” ), Jakarta, Indonesia Telecommunication - provides Network Access Point, Voice Over Data and other related services 1999; ceased operations on January 13, 2006 60 60 5 5 (ii) Immediate indirect subsidiaries: Year of start of Subsidiary/place of commercial Percentage of ownership interest Total assets before elimination incorporation Nature of business operations 2017 2018 2017 2018 PT Sigma Cipta Caraka ( “Sigma” ), Tangerang, Indonesia Information technology service - system implementation and integration service, outsourcing and software license maintenance 1988 100 100 6,050 7,758 Telekomunikasi Indonesia International Pte. Ltd., ("Telin Singapore") Singapore Telecommunication 2008 100 100 3,048 3,413 PT Infomedia Nusantara ( “Infomedia” ), Jakarta, Indonesia Data and information service-provides telecommunication information services and other information services in the form of print and electronic media and call center services 1984 100 100 2,115 2,381 PT Telkom Landmark Tower (“ TLT ”), Jakarta, Indonesia Service for property development and management 2012 55 55 2,009 2,128 PT Metra Digital Media (“ MD Media ”), Jakarta, Indonesia Directory information services 2013 100 100 1,106 1,645 Telekomunikasi Indonesia International Ltd., ("Telin Hongkong") Hong Kong Telecommunication 2010 100 100 710 1,185 PT Metra Digital Investama (“ MDI ”), Jakarta, Indonesia Trading and/or providing service related to information and technology, multimedia, entertainment and investments 2013 100 100 658 1,178 PT Finnet Indonesia (“ Finnet ”) Jakarta, Indonesia Information technology services 2006 60 60 907 1,011 TS Global Network Sdn. Bhd. (“ TSGN ”) Petaling Jaya, Malaysia Satellite service 1996 49 70 815 828 Telekomunikasi Indonesia International S.A. (“ TL” ), Dili, Timor Leste Telecommunication 2012 100 100 639 677 PT Swadharma Sarana Informatika ("Swadharma") Jakarta, Indonesia System integrator services 2001 — 51 — 461 PT Melon (“ Melon ”), Jakarta, Indonesia Digital content exchange hub services 2010 100 100 231 457 PT Administrasi Medika (“ Ad Medika ”), Jakarta, Indonesia Health insurance administration services 2002 100 100 273 346 PT Nusantara Sukses Investasi ( ”NSI” ), Jakarta, Indonesia Service and trading 2014 100 100 300 286 PT Graha Yasa Selaras (“ GYS ”), Jakarta, Indonesia Tourism service 2012 51 51 178 250 PT Metraplasa (“ Metraplasa ”), Jakarta, Indonesia Network and e-commerce services 2012 60 60 203 167 Telekomunikasi Indonesia International Pty Ltd, ("Telkom Australia") Sydney, Australia Telecommunication 2013 100 100 123 115 PT Nutech Integrasi (" Nutech "), Jakarta, Indonesia System integrator 2001 60 60 60 93 Telekomunikasi Indonesia International (Malaysia) Sdn. Bhd (“Telin Malaysia”) Kuala Lumpur, Malaysia Telecommunication 2013 49 70 23 76 Telekomunikasi Indonesia International Inc. ( “Telkom USA” ), Los Angeles, USA Telecommunication 2014 100 100 36 57 PT Satelit Multimedia Indonesia (“ SMI ”), Jakarta, Indonesia Satellite services 2013 99.99 100.00 18 16 (a) Nutech Based on notarial deed of Utiek Rochmuljati Abdurachman, S.H., M.LI, M.Kn., No. 10 and 11 dated December 13, 2017, Metra purchased 36,000 shares of Nutech (equivalent to 60% ownership) amounting to Rp24 billion. This is larger than the ownership portion of net book value amounting to Rp13 billion. As of December 31, 2017, the difference amounting to Rp11 billion was recognised as goodwill (Note 14). In accordance to independent appraisal report, fair value of net assets amounted to Rp18 billion. The difference between transaction price with the fair value of net assets amounting to Rp6 billion was recognised as goodwill (Note 14). Nutech is engaged in providing system integrator in Information and Communication Technologies (“ICT”) total solution in many industries. This new investment is expected to strengthen the Company’s business portfolio. (b) Swadharma Based on notarial deed Utiek Rochmuljati Abdurachman S.H., MLI., M.Kn, No. 3, 4, and 5 dated April 2, 2018, Metra purchased 14,600 shares of Swadharma ownership interests from Yayasan Danar Dana Swadharma, PT Tri Handayani Utama, and Koperasi Swadharma or equivalent to 36.50% ownership interests from Swadharma with purchase consideration amounting to Rp220 billion. Swadharma is engaged in information technology and ATM management facility. This new investment is expected to strengthen the Company’s business portfolio. Based on notarial deed N.M. Dipo Nusantara Pua Upa, S.H., MKn, No. 4 dated April 9, 2018, the Company as Metra's shareholders subscribed for 11,837 new shares issued by Swadharma with purchase consideration amounting to Rp178 billion. These acquired shares resulted in a change in composition to 51% ownership causing the Company to have control over Swadharma as a subsidiary with total purchase consideration amounting to Rp397 billion (consideration paid on acquisition of control net of cash acquired is Rp210 billion). Acquisition cost of Swadharma was higher than the ownership portion of net book value, which amounted to Rp196 billion. As of December 31, 2018, the difference was recorded as provisional goodwill. As of December 31, 2018, purchase price allocation of the acquisition is in progress. From the date of acquisition until December 31, 2018, the total revenue and profit before tax of Swadharma included in the statements of profit or loss income and other comprehensive income amounted to Rp630 billion and Rp101 billion, respectively. If acquisition occurred since the beginning of the year, revenue and profit before tax recognised in consolidated profit and loss and other comprehensive income would increase by Rp823 billion and Rp110 billion, respectively. (c) CIP Based on notarial deed Utiek Rochmuljati Abdurachman S.H., MLI., M.Kn, No. 151 and 152, dated December 28, 2018, Sigma purchased 2,493 shares of PT Collega Inti Pratama ("CIP") (equal to 67% ownership) from PT Upperco Usaha Maxima with purchase consideration paid amounting to Rp208 billion and 111 shares (equal to 3% ownership) from PT Abdi Anugerah Persada with purchase consideration paid amounting to Rp9 billion, hence Sigma owns 2,604 shares (equal to 70% ownership) causing the Company to have control over Sigma as a subsidiary with total purchase consideration amounting to Rp217 billion (consideration paid on acquisition of control net of cash acquired is Rp188 billion). Acquisition cost of CIP was higher than the ownership portion of net book value, which amounting to Rp165 billion. As of December 31, 2018, the difference was recorded as provisional goodwill. As of December 31, 2018, purchase price allocation of the acquisition is in progress. CIP is engaged in providing information technology that focuses on developing banking sector. This new investment is expected to strengthen the Company’s business portfolio. From the date of acquisition until December 31, 2018, the total revenue and profit before tax of CIP included in the statements of profit or loss income and other comprehensive income amounted to Rpnil. If acquisition occurred since the beginning of the year, revenue and profit before tax recognised in consolidated profit and loss and other comprehensive income would increase by Rp166 billion and Rp24 billion, respectively. (d) TSGN On December 14, 2017, TII purchased the equivalent of 49% ownership in TSGN in exchange for MYR66,150,000 (equivalent to Rp220 billion). TSGN is engaged in providing ICT systems for satellite communication services, satellite bandwith services and Very Small Aperture Terminal (“VSAT”) services. Non-controlling interests of the acquiree are measured at fair value. Based on Sale and Subscription Agreement, TII controls TSGN with the ability to place and replace 3 out of 5 key management members that controls the overall business of TSGN. On April 25, 2018, TII purchased 21% of additional ownership through newly issued shares. This acquisition will enhance synergy and utilization of assets and resources between companies in order to provide more innovative services to customers. The fair values of the identifiable assets and liabilities acquired at acquisition date were: Total Assets Cash and cash equivalents 21 Trade receivables 18 Other current assets 57 Property and equipment (Note 12) 770 Other non-current assets 20 Liabilities Current liabilities (422) Non-current liabilities (155) Fair value of identifiable net assets acquired 309 Fair value of non-controlling interest (157) Goodwill (Note 14) 68 Fair value consideration transferred 220 (e) Telin Malaysia On April 18, 2018, TII purchased 21% additional ownership in Telin Malaysia in exchange for contribution of MYR8,764,789 or equivalent to Rp31 billion (consideration paid on acquisition of control net of cash acquired is Rp16 billion) from Compudyne Telecommunication Systems Sdn, Bhd. Previously, Telin Malaysia was accounted for as an associate company with 49% ownership. In connection with the acquisition of Telin Malaysia’s shares, TII recognised goodwill amounting to Rp61 billion (Note 14). Telin Malaysia’s acquisition objective is to strengthen and to grow business relationship between Malaysia and Indonesia in telecommunication sector. From the date of acquisition until December 31, 2018, the total revenue and profit before tax of Telin Malaysia included in the statements of profit or loss and other comprehensive income amounted to Rp23 billion and Rp20 billion, respectively. If acquisition occurred since the beginning of the year, revenue and loss before tax recognised in consolidated profit and loss and other comprehensive income would increase by MYR13,323,065 (equivalent to Rp47 billion) and MYR7,888,930 (equivalent to Rp28 billion), respectively. e. Completion and Authorization for the issuance of the consolidated financial statements The Company's management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board which were completed and authorized for the issuance by the Board of Directors of The Company on May 21, 2019. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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 International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). a. Basis of preparation of the 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. 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 statements of profit or loss and other comprehensive income from the date the Group gains financial control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. Intercompany balances and transactions have been eliminated in the consolidated financial statements. In case of loss of control over a subsidiary, the Group: · derecognises the assets (including goodwill) and liabilities of the subsidiary at the carrying amounts on the date when it loses control; · derecognises the carrying amounts of any non-controlling interests of its former subsidiary on the date when it loses control; · recognises the fair value of the consideration received (if any) from the transaction, events, or condition that caused the loss of control; · recognises the fair value of any investment retained in the subsidiary at fair value on the date of loss of control; and · recognises 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 International Accounting Standards (“IAS”) 24, Related Party Disclosures. The party which is considered a related party is a person or entity that is related to the entity that is preparing its financial statements. 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 recognised at their fair values at the acquisition date. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses 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 recognised 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 recognised in profit or 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 recognised 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. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group shall report in its consolidated financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, the Group shall retrospectively adjust the provisional amounts recognised at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognised as of that 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 recognises the resulting gain or loss, if any, in profit or loss. e. Cash and cash equivalents Cash and cash equivalents comprises cash on hand, cash 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 statements of financial position. f. Investments in associated companies An associate is an entity over which the Group (as investor) has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but does not include control or joint control over those operating policies. The considerations made in determining significant influence are similar to those necessary to determine control over subsidiaries. The Group’s investments in its associates are accounted for using the equity method. Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise 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; and 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 recognised directly in the equity of the associate, the Group recognises its 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 recognises 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. g. Trade and other receivables Trade and other receivables are recognised initially at fair value and subsequently measured at amortized cost, less a loss allowance based on lifetime expected credit losses at each reporting date. The Group has established a credit provision methodology that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Receivables are written off in the year they are determined to be uncollectible. 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, 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 recognised 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 recognised as an 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 recognised 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 recognised if it is highly probable that the expected future economic benefits that are attributable to each asset will flow to the Group, and the cost of the asset can be reliably measured. Intangible assets are stated at cost less accumulated amortization and impairment losses, if any. Intangible assets are amortized over their estimated useful lives. The Group estimates the recoverable value of its intangible assets. When the carrying amount of an intangible asset exceeds its estimated recoverable amount, the asset is written down to its estimated recoverable amount. Intangible assets except goodwill are amortized using the straight-line method, based on the estimated useful lives of the intangible assets as follows: Years Software 3-6 License 3-20 Other intangible assets 1-30 Intangible assets are derecognised 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 recognised 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, if any. 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 are depreciated or amortized using the straight-line method based on the estimated useful lives of the assets as follows: Years Land rights 50 Buildings 15-40 Leasehold improvements 2-15 Switching equipment 3-15 Telegraph, telex and data communication equipment 5-15 Transmission installation and equipment 3-25 Satellite, earth station and equipment 3-20 Cable network 5-25 Power supply 3-20 Data processing equipment 3-20 Other telecommunication peripherals 5 Office equipment 2-5 Vehicles 4-8 Customer Premises Equipment (“CPE”) assets 4-5 Other equipment 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 measured reliably. 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 disposed of, their cost and the related accumulated depreciation are derecognised from the consolidated statements of financial position and the resulting gains or losses on the disposal or sale of the property and equipment are recognised 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 or sale. 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 recognised 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 recognised 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 recognised 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. n. Trade payables Trade payables are obligations to pay for goods and/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 recognised initially at fair value and subsequently measured at amortized cost using the effective interest method. o. Borrowings Borrowings are recognised 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 recognised 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 recognised 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 prepayment for liquidity services and amortized over the period of the facilities to which it relates. p. Foreign currency translations The functional currency and the reporting currency of the Group are both the Indonesian rupiah, except for the functional currency of Telekomunikasi Indonesia International Ltd., Hong Kong, Telekomunikasi Indonesia International Pte. Ltd., Singapore, Telekomunikasi Indonesia International Inc., USA, and Telekomunikasi Indonesia International S.A., Timor Leste whose functional currency is U.S. dollars, Telekomunikasi Indonesia International, Pty. Ltd., Australia whose functional currency is Australian dollars, and TS Global Network Sdn. Bhd. and Telekomunikasi Indonesia International Sdn. Bhd. whose functional currency is Malaysian ringgit. 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): 2017 2018 Buy Sell Buy Sell United States dollar (“US$”) 1 13,565 13,570 14,375 14,385 Australian dollar (“AUD”) 1 10,592 10,598 10,157 10,167 Euro ("EUR") 1 16,231 16,242 16,432 16,446 Japanese yen ("JPY") 1 120.48 120.55 130.56 130.70 Malaysian ringgit ("MYR") 1 3,349 3,355 3,474 3,480 The resulting foreign exchange gain or losses, realized and unrealized, are credited or charged to the consolidated statements of profit or loss and other comprehensive income, 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). For the purpose of reporting, the assets and liabilities of subsidiaries that functional currencies are different with the Group's functional currency 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 "Other Reserves" in the equity section of the consolidated statements of financial position. q. Revenue and expense recognition Revenue from contract with customers IFRS 15 establishes a comprehensive framework to determine how, when and how much revenue is to be recognised. The standard provides a single, principles-based five-step model for the determination and recognition of revenue to be applied to all contracts with customers. The standard also provides specific guidance requiring certain types of costs to obtain and/or fulfil a contract to be capitalized and amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the capitalized cost relates. The Group adopted IFRS 15 as at January 1, 2018 using the modified retrospective method by recognising the cumulative effect of initially applying IFRS 15 as an adjustment to the opening balance of equity at January 1, 2018. The Group has also elected to apply the following practical expedients on the transition date: · Completed contracts - the Group applied IFRS 15 only to customer contracts that had not been completed on January 1, 2018; and · Contract modifications - instead of applying a retrospective approach to quantify the cumulative effects of contract modifications from the time each modification was made; the Group aggregated the effects of all contract modifications that occured before January 1, 2018 in order to: (i) (ii) (iii) Moreover, the Group also elected to apply practical expedient to not account for the effect of financing component when the period between the payment for a promised good or service and the transfer for such good or service to the customer is less than one year, in adopting IFRS 15. Below is the summary of the Group’s revenue recognition accounting policy for each revenue stream: i. Mobile Revenue from mobile primarily comprises of revenue from cellular service which among others: telephone service, interconnection service, internet and data service and Short Messaging Services (“SMS”) service. Those services are offered on postpaid or prepaid basis, which for prepaid, the sales of starter packs (also known as SIM cards and start-up load vouchers) and pulse reload vouchers are recognised initially as contract liabilities. The Group recognise contract assets for provision of service from postpaid customers not yet billed. All mobile services revenues are recognised based on output method, either per actual usage or allowance unit used (if services sold in plan basis), because the customer simultaneously receives and consumes the benefits provided by the Group. For services sold in bundled plan, total consideration is allocated to performance obligations based on stand-alone selling price for each of product and/or service. The Group estimated the stand-alone selling price using the price enacted if the services are sold on a stand-alone basis. Most bundled plans sold by the Group only include services which are generally satisfied over the same period of time. Therefore the revenue recognition pattern is generally not impacted by the allocation. As part of its marketing programme, the Group had a customer loyalty programme named “Telkomsel Poin”, which allows customers to accumulate points for every certain multiple of the telecommunication service usage. The points can be redeemed in the future for free or discounted products or services, provided that other qualifying conditions are achieved. The consideration that is received is allocated between the telecommunication services and the points issued, with the consideration allocated to points that are equal to its fair value. The fair value of the points is determined according to historical information relating to the redemption rate of award points. The fair value of the points that are issued is deferred and recognised as revenue when the points are redeemed or have expired. ii. Consumer Revenue from Consumer primarily comprises of revenue from telephone service, internet and data service and paid TV service. Those services are offered on postpaid basis which billed in in the following month. The contracts are offered as month to month contract. All consumer services are recognised using the output method based on the customer's actual usage or time elapsed if the service sold as plan basis as the customer simultaneously receives and consumes the benefits provided by the Group. The Group has a bundled services plan named “Indihome”. Under this bundled plan, the customer is allowed to subscribe to a combination of Consumer’s service (i.e. telephone, internet and data and paid TV). The Group allocates the total contract price to the distinct performance obligations based on the stand-alone selling price of each performance obligation. The Group estimates the stand-alone selling price using the price enacted if the services are sold on a stand-alone basis. Customers may be required to pay an upfront fee at the commencement of the contract. The upfront fee is considered to be a material right because the customer is not required to pay an upfront fee when the customer renews the service beyond the original contract period. The Group values the renewal option in the amount of the consideration received from the upfront fee for the installation service. The Group defers the amount of renewal option and recognises it as revenue on a straight-line basis over the expected term of the customer relationships. The Group estimates the expected customer life based on the historical information and customer trends and updates the evaluation on an annual basis. iii. Enterprise Revenue from Enterprise primarily comprises of revenue from providing telephone service, data and internet service, information technologies service, and other services (e.g. sales of peripherals, manage service, call center service, e-health, e-payment, and others.). Some of the contracts with enterprise customers are bespoke in nature. Revenues from enterprise are recognised overtime using output method based on actual usage or time elapsed if the provision of service does not depend on usage (i.e. minute of voice, kilobyte of data, etc.), except for sales of goods which are recognised as a point in time, because the customer simultaneously receives and consumes the benefits provided by the Group. Revenues for performance obligations that are satisfied at a point in time is recognised when control of goods is transferred to the customer, typically when the customer has physical possession of the goods. Some of the arrangements in enterprise are offered as bundled arrangements. For bundled arrangements, the product and/or service in the contract is accounted for as an individual performance obligation when it is separately identifiable from other promises in the contract and the customer can benefit from the product/service on its own. The total consideration is allocated to each distinct performance obligation that has been included in the contract, based on its stand-alone selling price. The stand-alone selling price is determined according to the observable prices at which individual product and/or service are sold separately, adjusted for market conditions and normal discounts as appropriate. Alternatively, when the observable prices are not available, the expected cost plus margin approach is used to determine the stand-alone selling prices. Certain contracts with enterprise customers may give rise to variable consideration as the contract price depends on a future event (e.g. usage based contract or revenue-share based contract). In estimating the variable consideration, the Group is required to use either the expected value method or the most likely amount method based on the method that better predicts the amount of consideration to which it will be entitled. The Group determines that the most expected value method is the appropriate method to use in estimating the variable consideration for a single contract with a large number of possible outcomes. Before including any amount of variable consideration in the transaction price, the Group considers whether the amount of variable consideration is constrained. The Group determines that the estimates of variable consideration are not constrained based on its historical experience, business forecast and the current economic conditions and only includes variable consideration to the extent that it is highly probable that a significant reversal in the amount of cummulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. When another party is involved in providing products and/or services to a customer, the Group is the principal if it controls the specified products and/or services before those products and/or services are transferred to the customer. Revenues are recorded on the net amount that has been retained (the amount paid by the customer less the amount paid to the suppliers), when, in substance, the Group has acted as agent and earned commission from the suppliers of the products and/or services sold. iv. WIBS Revenue from WIBS is mainly comprised of interconnections service for interconnection of other telecommunications carriers’ subscriber calls to the Group’s subscribers (incoming) and calls between other telecommunications carriers subscribers through the Group’s network (transit) and network service with other telecommunications carriers. All of these services are recognised based on output method using the basis of the actual recorded traffic for the month . Some of the arrangements with WIBS customers contain a significant financing component as the time between the recognition of revenue and cash receipt is expected to exceed one year. The Group is expected to have a significant financing component in contracts involving the provision indefeasible rights of use which have been paid up-front by the customers. Incremental cost of obtaining/fulfilling contract with customers The incremental costs of obtaining/fulfiling contracts with customers, which principally is comprised of sales commissions and contract fulfilment costs, are initially recognised on the statement of financial po |
TRANSLATION OF INDONESIAN RUPIA
TRANSLATION OF INDONESIAN RUPIAH INTO UNITED STATES DOLLAR | 12 Months Ended |
Dec. 31, 2018 | |
TRANSLATION OF INDONESIAN RUPIAH INTO UNITED STATES DOLLAR | |
TRANSLATION OF INDONESIAN RUPIAH INTO UNITED STATES DOLLAR | 3. TRANSLATION OF INDONESIAN RUPIAH INTO UNITED STATES DOLLAR The consolidated financial statements are stated in Indonesian rupiah. The translation of the Indonesian rupiah amounts into U.S. dollar amounts are included solely for the convenience of the readers and has been made using the average of the market buy and sell rates of Rp14,380 to US$1 as published by Reuters on December 31, 2018. The convenience translation should not be construed as representations that the Indonesian rupiah amounts have been, could have been, or could in the future be, converted into U.S. dollar at this or any other rate of exchange. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2018 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | 4. CASH AND CASH EQUIVALENTS The breakdown of cash and cash equivalents is as follows: 2017 2018 Balance Balance Original currency Original currency Currency (in millions) Rupiah equivalent (in millions) Rupiah equivalent Cash on hand Rp — 12 — 36 Cash in banks Related parties PT Bank Mandiri (Persero) Tbk (“Bank Mandiri”) Rp — 1,481 — 1,199 US$ 27 367 10 139 JPY 7 1 8 1 EUR 1 17 1 20 HKD 1 2 1 1 AUD 0 0 0 0 PT Bank Negara Indonesia (Persero) Tbk (“BNI”) Rp — 968 — 791 US$ 1 13 2 28 EUR 0 6 0 0 SGD 0 0 0 0 PT Bank Rakyat Indonesia (Persero) Tbk (“BRI”) Rp — 466 — 728 US$ 6 82 2 31 PT Bank Tabungan Negara (Persero) Tbk (“BTN”) Rp — 7 — 342 Others Rp — 40 — 58 US$ 0 1 0 0 Sub-total 3,451 3,338 Third parties PT Bank Permata Tbk (“Bank Permata”) Rp — 278 — 218 US$ 0 2 2 30 PT Bank HSBC Indonesia ("HSBC") Rp — — — 1 The Hongkong and Shanghai Banking Corporation Ltd. ("HSBC Hongkong") US$ 14 184 12 181 HKD 4 6 5 9 Standard Chartered Bank (“SCB”) Rp — 0 — 0 US$ 11 154 10 148 SGD 0 1 1 14 PT Bank UOB Indonesia (“UOB”) Rp — 23 — 17 United Overseas Bank Limited ("UOB Singapore") US$ 1 15 4 55 SGD 0 2 1 14 MYR 2 8 3 9 Others Rp — 335 — 154 US$ 4 46 4 60 EUR 1 20 1 20 MYR 0 0 3 12 TWD 8 4 17 8 AUD 0 1 0 2 HKD 0 0 0 0 MOP 0 0 0 0 Sub-total 1,079 952 Total cash in banks 4,530 4,290 Time deposits Related parties BNI Rp — 5,315 — 2,640 US$ 9 116 58 837 BTN Rp — 2,958 — 2,559 US$ — — 31 446 BRI Rp — 4,954 — 1,911 US$ 15 203 47 676 PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk (“BJB”) Rp — 1,726 — 1,295 Bank Mandiri Rp — 446 — 611 US$ — — 16 230 Others Rp — 67 — 1 Sub-total 15,785 11,206 Third parties PT Bank Tabungan Pensiunan Nasional Tbk (“BTPN”) Rp — 676 — 181 US$ 30 401 25 363 UOB US$ 20 263 30 429 PT Bank Mega Tbk (“Bank Mega”) Rp — 1,243 — 365 PT Bank Bukopin Tbk (“Bank Bukopin”) Rp — 22 — 248 PT Bank CIMB Niaga Tbk (“Bank CIMB Niaga”) Rp — 600 — 190 US$ 2 31 — — PT Bank Muamalat Indonesia Tbk Rp — 91 — 40 PT Bank OCBC NISP Tbk (“OCBC NISP”) Rp — 1,200 — — SCB US$ 10 136 — — PT Bank ANZ Indonesia ("ANZ") Rp — 5 — — US$ 5 73 — — Others Rp — 30 — 52 MYR 14 47 11 39 Sub-total 4,818 1,907 Total time deposits 20,603 13,113 Provision for impairment of cash and cash equivalent — (4) Total 25,145 17,435 Interest rates per annum on time deposits are as follows: 2017 2018 Rupiah 2.85%‑8.50% 2.60%‑9.25% Foreign currencies 0.40%‑3.50% 0.50%‑3.75% 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 33 for details of related party transactions. |
OTHER CURRENT FINANCIAL ASSETS
OTHER CURRENT FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
OTHER CURRENT FINANCIAL ASSETS | |
OTHER CURRENT FINANCIAL ASSETS | 5. OTHER CURRENT FINANCIAL ASSETS The breakdown of other current financial assets is as follows: 2017 2018 Balance Balance Original currency Original currency Currency (in millions) Rupiah equivalent (in millions) Rupiah equivalent Time deposits Related parties BNI Rp — — — 1 BRI Rp — 2 — — Third parties SCB US$ 8 109 8 116 UOB US$ 14 191 3 45 HSBC US$ — — 3 43 Others Rp — 23 — — Total time deposits 325 205 Available-for-sale financial assets Related parties PT Mandiri Manajemen Investasi Rp — 711 — 379 PT Bahana TCW Investment Management (”Bahana TCW”) Rp — 360 — 91 Others Rp — 97 — — Total available-for-sale financial assets 1,168 470 Escrow accounts Rp — 318 — 136 US$ 6 78 0 1 MYR 5 15 5 16 Others Rp — 263 — 486 US$ 0 6 — — MYR 0 0 — — AUD 0 0 — — Total 2,173 1,314 The time deposits have maturities of more than three months but not more than one year, with interest rates as follows: 2017 2018 Rupiah 6.00%‑7.00% 5.00% Foreign currency 1.38%‑1.64% 1.35%‑2.18% Refer to Note 33 for details of related party transactions. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER RECEIVABLES | |
TRADE AND OTHER RECEIVABLES | 6. TRADE AND OTHER RECEIVABLES The breakdown of trade and other receivables is as follows: 2017 2018 Trade receivables 13,553 14,844 Provision for impairment of receivables (4,331) (5,543) Net 9,222 9,301 Other receivables 346 782 Provision for impairment of receivables (4) (155) Net 342 627 Total trade and other receivables 9,564 9,928 Trade receivables arise from services provided to both retail and non-retail customers, with details as follows: a. By debtor (i) Related parties 2017 2018 State-owned enterprises 721 1,495 Government agencies 519 672 Indonusa 465 522 PT Indosat Tbk (“Indosat”) 219 Others 670 467 Total 2,747 3,375 Provision for impairment of receivables (883) (1,361) Net 1,864 2,014 (ii) Third parties 2017 2018 Individual and business subscribers 9,289 10,674 Overseas international carriers 1,517 795 Total 10,806 11,469 Provision for impairment of receivables (3,448) (4,182) Net 7,358 7,287 b. By age (i) Related parties 2017 2018 Up to 3 months 1,721 2,090 3 to 6 months 107 397 More than 6 months 919 888 Total 2,747 3,375 Provision for impairment of receivables (883) (1,361) Net 1,864 2,014 (ii) Third parties 2017 2018 Up to 3 months 6,493 6,066 3 to 6 months 681 1,401 More than 6 months 3,632 4,002 Total 10,806 11,469 Provision for impairment of receivables (3,448) (4,182) Net 7,358 7,287 (iii) Aging of total trade receivables 2017 2018 Provision for Provision for impairment impairment Gross of receivables Gross of receivables Not past due 6,788 920 5,912 479 Past due up to 3 months 1,426 281 2,244 377 Past due more than 3 to 6 months 788 258 1,798 368 Past due more than 6 months 4,551 2,872 4,890 4,319 Total 13,553 4,331 14,844 5,543 The Group has made provision for impairment of receivables based on the collective assessment of its customers’ credit history, adjusted for forward-looking factors specific to the debtors and the economic environment. The Group does not apply a distinction between related party and third party receivables in assessing amounts past due. As of December 31, 2017 and 2018, the carrying amounts of trade receivables of the Group considered past due but not impaired amounted to Rp3,354 billion and Rp3,868 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. Information about the credit risk exposure on the Group’s trade receivables as of December 31, 2018 is as follows: Days past due Past due Past due Not Past due up more than more than Ending past due to 3 months 3 to 6 months 6 months balance Expected credit loss rate 8.1 % 16.8 % 20.5 % 88.3 % Estimated total gross carrying amount at default 5,912 2,244 1,798 4,890 14,844 Expected credit loss 479 377 368 4,319 5,543 c. By currency (i) Related parties 2017 2018 Rupiah 2,706 3,368 U.S. dollar 41 7 Others 0 0 Total 2,747 3,375 Provision for impairment of receivables (883) (1,361) Net 1,864 2,014 (ii) Third parties 2017 2018 Rupiah 9,781 9,977 U.S. dollar 968 1,372 Malaysian ringgit 16 82 Others 41 38 Total 10,806 11,469 Provision for impairment of receivables (3,448) (4,182) Net 7,358 7,287 d. Movements in the provision for impairment of receivables 2017 2018 Beginning balance 2,990 4,331 Adjustment on initial application of IFRS 9 — 159 Provision for impairment of receivables 1,494 2,079 Receivables written off (153) (1,026) Ending balance 4,331 5,543 The receivables written off relate to both related party and third party trade receivables. Management believes that the provision for impairment of receivables is adequate to cover losses on uncollectible trade receivables. As of December 31, 2018, certain trade receivables of the subsidiaries amounting to Rp7,116 billion have been pledged as collateral under lending agreements (Notes 18 and 19c). Refer to Note 33 for details of related party transactions. |
CONTRACT ASSETS
CONTRACT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
CONTRACT ASSETS | |
CONTRACT ASSETS | 7. CONTRACT ASSETS As of December 31, 2018, the Group’s contract assets are amounted Rp1,560 billion which is net of provision for expected credit losses of Rp38 billion. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
INVENTORIES | 8. INVENTORIES The breakdown of inventories is as follows: 2017 2018 Components 447 429 SIM cards and blank prepaid vouchers 168 137 Others 69 218 Total 684 784 Provision for obsolescence Components (24) (38) SIM cards and blank prepaid vouchers (29) (28) Others (1) Total (53) (67) Net 631 717 Movements in the provision for obsolescence are as follows: 2017 2018 Beginning balance 47 53 Provision recognised during the year 6 22 Inventory written off — (8) Ending balance 53 67 Management believes that the provision is adequate to cover losses from decline in inventory value due to obsolescence. The inventories recognised as expense and included in operations, maintenance and telecommunication service expenses as of December 31, 2016, 2017 and 2018 amounted to Rp2,105 billion, Rp2,458 billion, and Rp2,726 billion, respectively (Note 28). Certain inventories of the subsidiaries amounting to Rp235 billion have been pledged as collateral under lending agreements (Note 19c). As of December 31, 2017 and 2018, modules and components held by the Group with book value amounting to Rp143 billion and Rp125 billion, respectively, have been insured against fire, theft and other specific risks. Total sum insured as of December 31, 2017 and 2018 amounted to Rp256 billion and Rp176 billion, respectively. Management believes that the insurance coverage is adequate to cover potential losses of inventories arising from the insured risks. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | 9. OTHER CURRENT ASSETS The breakdown of other current assets is as follows: 2017 2018 Frequency license (Note 35c.i) 3,760 3,636 Advances 1,156 1,803 Prepaid rental 1,349 1,382 Prepaid salaries 227 200 Advance to employee 35 30 Others 656 229 Total 7,183 7,280 Refer to Note 33 for details of related party transactions. |
CONTRACT COSTS
CONTRACT COSTS | 12 Months Ended |
Dec. 31, 2018 | |
CONTRACT COSTS | |
CONTRACT COSTS | 10. CONTRACT COSTS Movement of contract costs for the year ended December 31, 2018 is as follows: 2018 Cost to obtain Cost to fulfill Total At January 1, 2018 193 903 Amortisation during the year (62) (1,094) (1,156) Addition current year 274 1,030 At December 31, 2018 405 839 Short term portion (85) (839) (924) Long term portion 320 — There is no provision for impairment of contract costs as of December 31, 2018. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
LONG-TERM INVESTMENTS | |
LONG-TERM INVESTMENTS | 11. LONG-TERM INVESTMENTS The details of long-term investments as of December 31, 2017 are as follows: 2017 Share of other Percentage of Beginning Additions Share of net comprehensive ownership balance (deductions) profit (loss) Dividend income Ending balance Long-term investments in associated companies: Tiphone a 24.00 1,488 — 80 (28) (1) 1,539 Indonusa b 20.00 221 — — — — 221 Teltranet c 51.00 38 — (20) — — 18 PT Integrasi Logistic Cipta Solusi ("ILCS") d 49.00 42 — 1 — — 43 PT Graha Sakura Nusantara ("GSN") e 45.00 — 14 0 — — 14 Others g 25.00 - 49.00 — 4 — 4 Sub-total 1,789 18 61 (28) (1) 1,839 Other long-term investments 58 251 — — 0 309 Total long-term investments 1,847 269 61 (28) (1) 2,148 Summarized financial information of the Group’s investments accounted for under the equity method for 2017*: Tiphone Indonusa Teltranet ILCS GSN Others Statements of financial position Current assets 8,084 307 174 145 1 190 Non-current assets 994 415 101 32 185 606 Current liabilities (2,107) (877) (149) (87) (27) (724) Non-current liabilities (3,255) (177) (90) (2) (129) (1,882) Equity (deficit) 3,716 (332) 36 88 30 (1,810) Statements of profit or loss and other comprehensive income Revenues 27,914 692 209 122 — 106 Operating expenses (27,217) (333) (255) (116) (287) Other expenses - net (246) (364) (5) (4) — (19) Profit (loss) before tax 451 (5) (51) 2 0 (200) Income tax benefit (expense) (116) — 13 1 — — Profit (loss) for the year 335 (5) (38) 3 0 (200) Other comprehensive income (loss) (3) — — — Total comprehensive income (loss) for the year 332 (5) (38) 3 0 (200) The details of long-term investments as of December 31, 2018 are as follows: 2018 Adjustment on initial Share of other Percentage of Beginning application of Additions Changes of Share of net comprehensive ownership balance IFRS 9 (deductions) net fair value profit (loss) Dividend income Ending balance Long-term investments in associated companies : Tiphone a 24.00 1,539 — — — 87 (9) (15) 1,602 Indonusa b 20.00 221 — — — (11) — — 210 Teltranet c 51.00 18 — — — (19) — 1 0 ILCS d 49.00 43 — — — 1 0 0 44 GSN e 45.00 14 — — — 0 — — 14 Others f 25.00-32.00 4 — 84 — (5) 0 0 83 Sub-total 1,839 — 84 — 53 (9) (14) 1,953 Other long-term Investments 309 69 253 78 — — — 709 Total long-term Invesment 2,148 69 337 78 53 (9) (14) 2,662 Summarized financial information of the Group’s investments accounted for under the equity method for 2018*: Tiphone Indonusa Teltranet ILCS GSN Others Statements of financial position Current assets 7,615 449 269 132 15 223 Non-current assets 892 310 116 47 169 644 Current liabilities (1,466) (572) (269) (87) (1) (687) Non-current liabilities (3,062) (297) (138) (2) (152) (1,883) Equity (deficit) 3,979 (110) (22) 90 31 (1,703) Statements of profit or loss and other comprehensive income Revenues 29,228 824 206 164 5 117 Operating expenses (28,337) (583) (264) (162) (5) (279) Other income (expenses) including finance costs - net (391) (39) (13) 1 0 (43) Profit (loss) before tax 500 202 (71) 3 0 (205) Income tax benefit (expense) (138) (55) 12 (1) — (1) Profit (loss) for the year 362 147 (59) 2 0 (206) Other comprehensive income (loss) (63) (2) 1 — — — Total comprehensive income (loss) for the year 299 145 (58) 2 0 (206) * The summarized financial information of assoicated companies above were prepared under Indonesian Financial Accounting Standards. a Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as 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, 2017 and 2018, the fair value of the investment amounted to Rp1,755 billion and Rp1,649 billion, respectively. The fair value was calculated by multiplying the number of shares by the published price quotation as of December 31, 2017 and 2018 amounting to Rp1,000 and Rp940 per share, respectively. Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of December 31, 2017 and 2018 is as follows: 2017 2018 Assets 9,078 8,507 Liabilities (5,362) (4,528) Net assets 3,716 3,979 Group’s proportionate share of net assets (24.00% in 2017 and 2018) 892 955 Goodwill 647 647 Carrying amount of long-term investment 1,539 1,602 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 Isbandi, S.H., which was approved by the MoLHR in 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 waived its right to own the new shares issued and transferred it to Metra, as the result, Metra’s ownership in Indonusa increased to 4.33% and the Company’s ownership become 15.67%. c 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 to determine the financial and operating policies of Teltranet. The unrecognised share of losses in Teltranet for the year ended December 31, 2018 are Rp11 billion. d ILCS is engaged in providing E-trade logistic services and other related services. e On August 31, 2017, NSI and third party established GSN which engaged in real estate, residential and apartment marketing business. f The unrecognised share of losses in other investments cumulatively as of December 31, 2018 are Rp263 billion. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY AND EQUIPMENT. | |
PROPERTY AND EQUIPMENT | 12. PROPERTY AND EQUIPMENT The details of property and equipment are as follows : December 31, Business Reclassifications/ December 31, 2016 acquisitions Additions Deductions Translations 2017 At cost : Land rights 1,417 40 62 — — 1,519 Buildings 7,837 39 211 (3) 1,718 9,802 Leasehold improvements 1,116 — 34 (25) 132 1,257 Switching equipment 20,539 69 556 (977) (1,675) 18,512 Telegraph, telex and data communication equipment 1,586 — — — (3) 1,583 Transmission installation and equipment 126,908 — 2,648 (4,489) 14,314 139,381 Satellite, earth station and equipment 8,445 573 1,233 (2,202) 1,251 9,300 Cable network 44,990 — 5,715 (694) (2,657) 47,354 Power supply 15,237 — 222 (456) 1,491 16,494 Data processing equipment 12,599 — 715 (603) 666 13,377 Other telecommunication peripherals 702 — 966 (7) — 1,661 Office equipment 1,529 11 327 (84) (146) 1,637 Vehicles 522 — 355 (37) — 840 CPE assets 22 — — — — 22 Other equipment 100 — — — (3) 97 Property under construction 4,550 — 20,110 (96) (20,149) 4,415 Total 248,099 732 33,154 (9,673) (5,061) 267,251 December 31, Reclassifications/ December 31, 2016 Additions Deductions Translations 2017 Accumulated depreciation and impairment losses: Land rights 268 31 — — 299 Buildings 2,435 407 — 38 2,880 Leasehold improvements 692 149 (23) 5 823 Switching equipment 16,690 1,393 (977) (2,511) 14,595 Telegraph, telex and data communication equipment 333 416 — 53 802 Transmission installation and equipment 64,365 11,213 (3,642) (55) 71,881 Satellite, earth station and equipment 7,098 595 (2,202) (1,157) 4,334 Cable network 20,494 2,003 (693) (3,752) 18,052 Power supply 10,262 1,296 (286) 2 11,274 Data processing equipment 9,512 1,401 (582) (19) 10,312 Other telecommunication peripherals 462 149 (7) (1) 603 Office equipment 940 215 (65) 26 1,116 Vehicles 200 113 (21) — 292 CPE assets 19 1 — — 20 Other equipment 99 1 — (4) 96 Total 133,869 19,383 (8,498) (7,375) 137,379 Net book value 114,230 129,872 December 31, Business Reclassifications/ December 31, 2017 acquisitions Additions Deductions Translations 2018 At cost : Land rights 1,519 46 39 — 22 1,626 Buildings 9,802 43 67 (1) 1,922 11,833 Leasehold improvements 1,257 — 23 (24) 119 1,375 Switching equipment 18,512 — 818 (1,920) (2,070) 15,340 Telegraph, telex and data communication equipment 1,583 — 3 — — 1,586 Transmission installation and equipment 139,381 — 3,287 (6,398) 10,743 147,013 Satellite, earth station and equipment 9,300 — 2,414 (3) 261 11,972 Cable network 47,354 — 5,887 (36) (7,555) 45,650 Power supply 16,494 13 484 (277) 1,275 17,989 Data processing equipment 13,377 23 140 (622) 1,348 14,266 Other telecommunication peripherals 1,661 — 1,765 — (1) 3,425 Office equipment 1,637 46 475 (86) 86 2,158 Vehicles 840 6 379 (1) (5) 1,219 CPE assets 22 — — — — 22 Other equipment 97 — 18 — (21) 94 Property under construction 4,415 2 17,821 (23) (17,339) 4,876 Total 267,251 179 33,620 (9,391) (11,215) 280,444 December 31, Reclassifications/ December 31, 2017 Additions Deductions Translations 2018 Accumulated depreciation and impairment losses: Land rights 299 36 — — 335 Buildings 2,880 513 (1) 13 3,405 Leasehold improvements 823 150 (24) — 949 Switching equipment 14,595 1,309 (1,920) (3,390) 10,594 Telegraph, telex and data communication equipment 802 518 — — 1,320 Transmission installation and equipment 71,881 11,561 (5,579) (372) 77,491 Satellite, earth station and equipment 4,334 677 (3) (3) 5,005 Cable network 18,052 2,084 (36) (7,718) 12,382 Power supply 11,274 1,375 (267) 7 12,389 Data processing equipment 10,312 1,047 (601) (10) 10,748 Other telecommunication peripherals 603 428 — (1) 1,030 Office equipment 1,116 334 (72) 4 1,382 Vehicles 292 122 (1) (6) 407 CPE assets 20 — — — 20 Other equipment 96 4 — (25) 75 Total 137,379 20,158 (8,504) (11,501) 137,532 Net book value 129,872 142,912 Refer to Note 33 for details of related party transactions. a. Gain on sale of property and equipment 2016 2017 2018 Proceeds from sale of property and equipment 765 1,367 629 Net book value (152) (1,009) (1) Gain on sale of property and equipment 613 358 628 b. Asset impairment In 2014, the Company decided to cease its fixed wireless business, and accelerated the depreciation of its fixed wireless assets in 2015. In 2017, the Company derecognised the fixed wireless asset which fully depreciated with acquisition cost of Rp3,193 billion. As of December 31, 2018, the CGUs that independently generate cash inflows are fixed wireline, cellular and others. Management believes that there is no indication of impairment in the assets of such CGUs as of Desember 31, 2018. c. Others (i) Interest capitalized to property under construction amounted to Rp444 billion, Rp328 billion and Rp271 billion for the years ended December 31, 2016, 2017 and 2018, respectively. The capitalization rate used to determine the amount of borrowing costs eligible for capitalization ranged from 10.20% to 11.00%, 8.15% to 11.00% and 9.68% to 11.00% for the years ended December 31, 2016, 2017 and 2018, respectively. (ii) No foreign exchange loss was capitalized as part of property under construction for the years ended December 31, 2016, 2017 and 2018. (iii) In 2016, 2017 and 2018, the Group obtained proceeds from the insurance claim on lost and broken property and equipment, with a total value of Rp77 billion, Rp155 billion and Rp153 billion, respectively, and were recorded as part of “Other Income” in the consolidated statements of profit or loss and other comprehensive income. In 2016, 2017 and 2018, the net carrying values of those assets of Rp19 billion, Rp7 billion and Rp51 billion, respectively, were charged to the consolidated statements of profit or loss and other comprehensive income. (iv) In 2017 and 2018, Telkomsel decided to replace certain equipment units with net carrying amount of Rp620 billion and Rp341 billion, respectively, as part of its modernization program and accelerated the depreciation of such equipment units. The impact of accelerated depreciation was an increase in the depreciation expense for the year ended December 31, 2018 amounting to Rp378 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 change in useful lives of the buildings and transmissions was an increase the profit before income tax in 2018 amounted to Rp135 billion. In 2018, the estimated useful lives of radio software license and data processing equipment were changed from 7 to 10 years and from 3 to 5 years, respectively. The impact of reduction in depreciation expense for the year ended December 31, 2018 amounting to Rp925 billion. The impact of the changes in the estimated useful lives of the radio software license in following years is as follows: Years Increase (Decrease) 2019 2020 2021 2022 (106) (v) Exchange of property and equipment In 2011 and 2012, 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 2017 and 2018, the Company derecognised the copper cable network asset with net carrying amount of Rp1 billion and Rp0 billion, respectively, and recorded the fiber optic network asset from the exchange transaction of Rp506 billion and Rp0 billion, respectively. In 2017 and 2018, Telkomsel’s certain equipment units with net carrying amount of Rp816 billion and Rp777 billion, respectively, were exchanged with equipment from Ericsson AB, PT Ericsson Indonesia, PT Huawei Tech Investment, PT Nokia Solutions and Network Indonesia, and PT ZTE Indonesia. As of December 31, 2018, Telkomsel’s equipment units with net carrying amount of Rp340 billion are going to be exchanged and, therefore, these equipment were reclassified as “Assets held for sale” in the consolidated statements of financial position. (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 2018 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, 2018, the Group’s property and equipment excluding land rights, with net carrying amount of Rp134,586 billion were insured against fire, theft, earthquake and other specified risks, including business interruption, under blanket policies totalling Rp16,059 billion, US$47 million, HKD9 million, SGD225 million and MYR37 million and first loss basis amounted to Rp2,760 billion. Management believes that the insurance coverage is adequate to cover potential losses from the insured risks. (viii) As of December 31, 2018, the percentage of completion of property under construction was around 62.80% of the total contract value, with estimated dates of completion until September 2020. 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 (Note 19b.i). Certain property and equipment of the Company’s subsidiaries with gross carrying value amounting to Rp8,077 billion have been pledged as collateral under lending agreements (Notes 18, 19c, and 19d). (x) As of December 31, 2018, the cost of fully depreciated property and equipment of the Group that are still used in operations amounted to Rp50,633 billion. The Group is currently performing modernization of network assets to replace the fully depreciated property and equipment. (xi) On August 25, 2017, Telkom-1 Satellite experienced technical problems which impacted to customer service disruptions. Therefore, the Company was migrating customers services to the Company’s other satellites (Telkom-3S and Telkom-2), as well as to several third party satellites. This customers services migration process has been completed on September 10, 2017, and the costs incurred on this migration process are recognised in these consolidated statements of profit or loss and other comprehensive income. As of December 31, 2017, the acquisition cost and accumulated depreciation of Telkom-1 Satellite amounting to Rp1,165 billion is presented as part of disposal assets group and classified as “Other Non-current Assets” in the consolidated statements of financial position. (xii) 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. Telkomsel may extend the lease period based on mutual agreement with the relevant parties. In addition, the Group also has lease commitments for transmission installation and equipment, data processing equipment, office equipment, vehicles and CPE assets with the option to purchase certain leased assets at the end of the lease terms. Future minimum lease payments required for assets under finance leases are as follows: Years 2017 2018 2018 1,083 — 2019 969 1,049 2020 866 945 2021 778 781 2022 605 605 2023 254 254 Thereafter 130 130 Total minimum lease payments 4,685 3,764 Interest (881) (619) Net present value of minimum lease payments 3,804 3,145 Current maturities (Note 18b) (794) (807) Long-term portion (Note 19) 3,010 2,338 The details of obligations under finance leases as of December 31, 2017 and 2018 are as follows: 2017 2018 PT Tower Bersama Infrastructure Tbk. 1,293 1,089 PT Profesional Telekomunikasi Indonesia 1,120 930 PT Mandiri Utama Finance 198 186 PT Solusi Tunas Pratama 212 181 PT Putra Arga Binangun 189 159 PT Mitsubishi UFJ Lease and Finance Indonesia 135 103 PT Bali Towerindo Sentra 100 86 Others (each below Rp75 billion) 557 411 Total 3,804 3,145 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 13. OTHER NON-CURRENT ASSETS The breakdown of other non-current assets is as follows: 2017 2018 Prepaid other taxes - net of current portion (Note 30) 3,075 2,698 Prepaid rental - net of current portion (Note 9) 2,688 2,662 Frequency license - net of current portion (Note 9) 2,019 1,743 Prepaid income taxes - net of current portion (Note 30) 763 894 Deferred charges 413 474 Advances for purchases of property and equipment 2,805 387 Convertible bonds 64 213 Restricted cash 31 183 Security deposit 116 173 Others 296 227 Total 12,270 9,654 Prepaid rental covers rent of leased line, telecommunication equipment, land and building under lease agreements of the Group with remaining rental periods ranging from 1 to 40 years. As of December 31, 2017 and 2018, deferred charges represent deferred Indefeasible Right of Use (“IRU”) Agreement charges. Total amortization of deferred charges for the years ended December 31, 2016, 2017 and 2018 amounted to Rp40 billion, Rp46 billion and Rp56 billion, respectively. Refer to Note 33 for details of related party transaction. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 14. INTANGIBLE ASSETS The details of intangible assets are as follows: Other intangible Goodwill Software License assets Total Gross carrying amount: Balance, December 31, 2016 449 7,222 75 607 8,353 Additions — 1,289 3 21 1,313 Acquisition 232 4 — — 236 Deductions (3) (122) — (11) (136) Reclassifications/translations 2 (6) 6 18 20 Balance, December 31, 2017 680 8,387 84 635 9,786 Accumulated amortization and impairment losses: Balance, December 31, 2016 (21) (4,776) (56) (411) (5,264) Amortization — (1,037) (9) (48) (1,094) Deductions — 95 — 11 106 Reclassifications/translations — 4 (6) (2) (4) Balance, December 31, 2017 (21) (5,714) (71) (450) (6,256) Net 659 2,673 13 185 3,530 Other intangible Goodwill Software License assets Total Gross carrying amount: Balance, December 31, 2017 680 8,387 84 635 9,786 Additions — 2,328 14 19 2,361 Acquisition 422 1 2 — 425 Deductions — (51) (11) — (62) Reclassifications/translations (36) 15 5 33 17 Balance, December 31, 2018 1,066 10,680 94 687 12,527 Accumulated amortization and impairment losses: Balance, December 31, 2017 (21) (5,714) (71) (450) (6,256) Amortization — (1,226) (9) (49) (1,284) Deductions — 51 4 — 55 Reclassifications/translations — (7) (5) 2 (10) Balance, December 31, 2018 (21) (6,896) (81) (497) (7,495) Net 1,045 3,784 13 190 5,032 (i) Goodwill resulted from the acquisition of Sigma (2008), Ad Medika (2010), PT Bina Data Mandiri (2012), Contact Centres Australia Pty. Ltd. (2014), PT Media Nusantara Data Global (2015), Melon (2016), PT Griya Silkindo Drajatmoerni (2016), TSGN (2017), Nutech (2017), Swadharma (2018), CIP (2018) and Telin Malaysia (2018) (Note 1d). (ii) The amortization is presented as part of “Depreciation and Amortization” in the consolidated statements of profit or loss and other comprehensive income. The remaining amortization periods of software range from 1 to 5 years. (iii) As of December 31, 2018, the cost of fully amortized intangible assets that are still used in operations amounted to Rp4,463 billion. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER PAYABLES | |
TRADE AND OTHER PAYABLES | 15. TRADE AND OTHER PAYABLES This account consists of the following: 2017 2018 Trade payables 15,574 14,766 Other payables 217 448 Total trade and other payables 15,791 15,214 The breakdown of trade payables is as follows: 2017 2018 Related parties Radio frequency usage charges, concession fees and Universal Service Obligation (“USO”) charges 1,561 1,471 Purchases of equipments, materials and services 577 829 Payables to other telecommunication providers 322 189 Sub-total 2,460 2,489 Third parties Purchases of equipments, materials and services 11,659 10,849 Payables to other telecommunication providers 1,455 1,428 Sub-total 13,114 12,277 Total 15,574 14,766 Trade payables by currency are as follows: 2017 2018 Rupiah 13,344 11,726 U.S. dollar 2,167 2,978 Others 63 62 Total 15,574 14,766 Refer to Note 33 for details of related party transactions. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
ACCRUED EXPENSES | |
ACCRUED EXPENSES | 16. ACCRUED EXPENSES The breakdown of accrued expenses is as follows: 2017 2018 Operation, maintenance and telecommunication services 7,093 8,013 General, administrative and marketing expenses 2,684 2,299 Salaries and benefits 2,664 2,219 Interest and bank charges 189 238 Total 12,630 12,769 Refer to Note 33 for details of related party transactions. |
CONTRACT LIABILITIES
CONTRACT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
CONTRACT LIABILITIES | |
CONTRACT LIABILITIES | 17. CONTRACT LIABILITIES The breakdown of contract liabilities is as follows: a. Current 2017 2018 Prepaid pulse reload vouchers 4,800 4,413 Material rights for contract renewal 44 65 Others 583 774 Total 5,427 5,252 b. Non-current 2017 2018 IRU 205 258 Material rights for contract renewal 305 394 Others 14 — Total 524 652 The balance of contract liabilities as of December 31, 2017 is presented as unearned income in the consolidated statements of financial position. Contract liabilities at the beginning period which recognised as revenue in current year is Rp5,495 billion. |
SHORT-TERM BANK LOANS AND CURRE
SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS | |
SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS | 18. SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS This account consists of the following: 2017 2018 Short-term bank loans 2,289 4,043 Current maturities of long-term borrowings 5,209 6,296 Total 7,498 10,339 a. Short-term bank loans 2017 2018 Outstanding Outstanding Original Original currency Rupiah currency Rupiah Lenders Currency (in millions) equivalent (in millions) equivalent Related parties BNI Rp — 1,252 — 956 Bank Mandiri Rp — 45 — — Sub-total 1,297 956 Third parties MUFG Bank, Ltd. ("MUFG Bank") Rp — — — 1,295 DBS Rp — 408 — 699 US$ — — 1 13 UOB Rp — 400 — 580 HSBC Rp — 18 — 317 US$ — — 0 4 SCB Rp — — — 100 Bank CIMB Niaga Rp — 83 — 78 PT Bank Sumitomo Mitsui Indonesia ("Sumitomo") Rp — 80 — — Others Rp — 3 — 1 Sub-total 992 3,087 Total 2,289 4,043 Refer to Note 33 for details of related party transactions. Other significant information relating to short-term bank loans as of December 31, 2018 is as follows: Total facility Interest Interest rate Borrower Currency (in billions)* Maturity date payment period per annum Security BNI 2014 - 2017 GSD e , Sigma a Rp 375 January 9, 2019 - Monthly Trade receivables (Note 6) and property and equipment (Note 12) 2013 - 2018 Telkom Infratel, Infomedia f , MD Media, Sigma e Rp 2,895 January 9, 2019 - Monthly 1 month Trade receivables (Note 6) MUFG Bank 2018 Telkomsel, Infomedia, Metra, TII Rp 2,350 March 27, 2019 - Monthly, 1 month JIBOR + 0.70% - 0.95%, None DBS 2018 Telkom Infratel, Infomedia Rp 600 February 26, 2019 Monthly 1 month JIBOR + 0.70% None 2016 Nutech e Rp 17 October 13, 2019 Monthly 10.50% - 11.00% None 2016 Sigma b,c US$ 0.02 July 31, 2019 Semi-annually 3.25% (US$), 10.75% (Rp) Trade receivables (Note 6) UOB 2016 - 2018 MD Media, Finnet d Rp 800 April 6, 2019 - Monthly 1 month JIBOR + 2.00% Trade receivables (Note 6) HSBC 2014 Sigma g Rp 600 July 15, 2019 Monthly 14.34% Trade receivables (Note 6) 2014 Sigma g US$ 0.004 July 15, 2019 Monthly Trade receivables (Note 6) 2018 PINS Rp 300 June 28, 2019 Quarterly 3 months JIBOR + 1.00% None SCB 2015 GSD e Rp 100 March 28, 2019 Monthly None Bank CIMB Niaga 2013 GSD e Rp 85 January 1, 2019 Monthly 10.90% - 11.50% Trade receivables (Note 6) and property and equipment (Note 12) * In original currency. a Based on the latest amendment on December 21, 2017. b Based on the latest amendment on December 5, 2018 c Facility in U.S. Dollar. Withdrawal can be executed in U.S. Dollar and Rupiah. d Based on the latest amendment on June 5, 2018. e Unsettled loan will be automatically extended. f Based on the latest amendment on March 28, 2018 and July 6, 2018. g Based on the latest amendment on July 16, 2018. On February 26, 2018, the Company, Telkom Infratel and Infomedia entered a credit agreements with DBS amounting to Rp600 billion. As of December 31, 2018, the unused facilities was amounting to Rp125 billion. On March 21, 2018, the Company, TII, Infomedia and Metra entered a credit agreement with MUFG Bank amounting to Rp500 billion. As of December 31, 2018, the unused facilities was amounting to Rp80 billion. The credit facilities were obtained by the Company's subsidiaries for working capital purposes. b. Current maturities of long-term borrowings Notes 2017 2018 Two-step loans 19a 206 198 Bonds and notes 19b — 525 Bank loans 19c 4,110 4,472 Other borrowings 19d 99 294 Obligations under finance leases 12c.xii 794 807 Total 5,209 6,296 Refer to Note 33 for details of related party transactions. |
LONG-TERM LOANS AND OTHER BORRO
LONG-TERM LOANS AND OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
LONG-TERM LOANS AND OTHER BORROWINGS | |
LONG-TERM LOANS AND OTHER BORROWINGS | 19. LONG-TERM LOANS AND OTHER BORROWINGS Long-term loans and other borrowings consist of the following: Notes 2017 2018 Two-step loans 19a 892 751 Bonds and notes 19b 8,982 9,956 Bank loans 19c 13,894 18,748 Other borrowings 19d 1,196 1,950 Obligations under finance leases 12c.xii 3,010 2,338 Total 27,974 33,743 Scheduled principal payments as of December 31, 2018 are as follows: Year Notes Total 2020 2021 2022 2023 Thereafter Two-step loans 19a 751 198 181 144 127 101 Bonds and notes 19b 9,956 2,490 477 2,197 — 4,792 Bank loans 19c 18,748 7,648 3,051 2,577 2,813 2,659 Other borrowings 19d 1,950 404 405 405 415 321 Obligations under finance leases 12c.xii 2,338 768 670 549 233 118 Total 33,743 11,508 4,784 5,872 3,588 7,991 a. Two-step loans Two-step loans are unsecured loans obtained by the Government from overseas banks which are then re-loaned to the Company. Loans obtained up to July 1994 are payable in rupiah based on the exchange rate at the date of drawdown. Loans obtained after July 1994 are payable in their original currencies and any resulting foreign exchange gain or loss is borne by the Company. 2017 2018 Outstanding Outstanding Original currency Rupiah Original currency Rupiah Lenders Currency (in millions) equivalent (in millions) equivalent Overseas banks Yen 5,375 648 4,607 602 US$ 17 237 13 188 Rp — 213 — 159 Total 1,098 949 Current maturities (Note 18b) (206) (198) Long-term portion 892 751 Principal payment Interest payment Interest rate per Lenders Currency schedule period annum Overseas banks Yen Semi-annually Semi-annually 2.95 % US$ Semi-annually Semi-annually 3.85 % Rp Semi-annually Semi-annually 7.50 % 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 originating from Asian Development Bank (“ADB”). b. I nternal 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, 2018, the Company has complied with the above-mentioned ratios. Refer to Note 33 for details of related party transactions. b. Bonds and notes 2017 2018 Outstanding Outstanding Original currency Rupiah Original currency Rupiah Bonds and notes Currency (in millions) equivalent (in millions) equivalent Bonds 2010 Series B Rp — 1,995 — 1,995 2015 Series A Rp — 2,200 — 2,200 Series B Rp — 2,100 — 2,100 Series C Rp — 1,200 — 1,200 Series D Rp — 1,500 — 1,500 Medium Term Notes (“MTN”) MTN I Telkom 2018 Series A Rp — — — 262 Series B Rp — — — 200 Series C Rp — — — 296 MTN Syariah Ijarah I Telkom 2018 Series A Rp — — — 264 Series B Rp — — — 296 Series C Rp — — — 182 Total 8,995 10,495 Unamortized debt issuance cost (13) (14) Total 8,982 10,481 Current maturities (Note 18b) — (525) Long-term portion 8,982 9,956 (i) Bonds 2010 Interest payment Interest rate per Bonds Principal Issuer Listed on Issuance date Maturity date period annum Series B 1,995 The Company IDX June 25, 2010 July 6, 2020 Quarterly 10.20 % The bonds are not secured by specific security but by all of the Company’s assets, movable or non-movable, either existing or in the future (Note 12c.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. Based on the General Meeting of Bondholders on September 26, 2018, the trustee was changed to BTN. 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, 2018, 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, 2018 the Company has complied with the above-mentioned ratios. 2015 Interest payment Interest rate Bonds Principal Issuer Listed on Issuance date Maturity date period per annum Series A 2,200 The Company IDX June 23, 2015 June 23, 2022 Quarterly 9.93 % Series B 2,100 The Company IDX June 23, 2015 June 23, 2025 Quarterly 10.25 % Series C 1,200 The Company IDX June 23, 2015 June 23, 2030 Quarterly 10.60 % Series D 1,500 The Company IDX June 23, 2015 June 23, 2045 Quarterly 11.00 % Total 7,000 The bonds are not secured by specific security but by all of the Company’s assets, movable or non-movable, either existing or in the future (Note 12c.ix). The underwriters of the bonds are Bahana, PT Danareksa Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia, Tbk. and the trustee is Bank Permata. 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, 2018, the rating of the bonds issued 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, 2018, the Company has complied with the above-mentioned ratios. (ii) MTN MTN I Telkom Year 2018 Interest payment Interest rate Notes Currency Principal Issuance date Maturity date period per annum Security Series A Rp 262 September 4, 2018 September 14, 2019 Quarterly 7.25 % All assets Series B Rp 200 September 4, 2018 September 4, 2020 Quarterly 8.00 % All assets Series C Rp 296 September 4, 2018 September 4, 2021 Quarterly 8.35 % All assets 758 Based on Agreement of Issuance and Appointment of Monitoring Agents of Medium Term Notes (MTN) I Telkom Year 2018 dated August 31, 2018 as covered by notarial deed No. 24 of Fathiah Helmi, S.H., the Company issued MTN with the principal amount up to Rp758 billion in series. Bahana, PT BNI Sekuritas, PT CGS-CIMB Sekuritas Indonesia, PT Danareksa Sekuritas and PT Mandiri Sekuritas act as the Arranger, BTN as the Monitoring Agent and PT Kustodian Sentral Efek Indonesia (“KSEI”) as the Custodian. The MTN are traded in private placement programs. The funds obtained from MTN are used for development of cable network and backbone. As of December 31, 2018, the rating of the MTN issued by Pefindo is idAAA (Triple A). Under the agreement, the Company is required to comply with all covenants or restrictions including maintaining financial ratios as follows: 1. 2. 3. As of December 31, 2018, the Company has complied with the above-mentioned ratios. MTN Syariah Ijarah I Telkom Year 2018 Annual Maturity Return return Notes Currency Principal Issuance date date period payment Security Series A Rp 264 September 4, 2018 September 14, 2019 Quarterly The Right to benefit of ijarah objects Series B Rp 296 September 4, 2018 September 4, 2020 Quarterly The Right to benefit of ijarah objects Series C Rp 182 September 4, 2018 September 4, 2021 Quarterly The Right to benefit of ijarah objects 742 Based on Agreement of Issuance and Appointment of Monitoring Agents of Medium Term Notes (MTN) Syariah Ijarah Telkom Year 2018 dated August 31, 2018 as covered by notarial deed No. 26 of Fathiah Helmi, S.H., the Company issued MTN Syariah Ijarah with the principal amount up to Rp742 billion in series. Bahana, PT BNI Sekuritas, PT CGS-CIMB Sekuritas Indonesia, PT Danareksa Sekuritas and PT Mandiri Sekuritas act as the Arranger, BTN as the Monitoring Agent and KSEI as the Custodian. The MTN Syariah Ijarah are traded in private placement programs. The funds obtained from MTN Syariah Ijarah are used for investment projects. The object of MTN Syariah Ijarah transaction is telecommunication network which is located in the special region of Yogyakarta, its network telecommunication involves cable network, information technology equipments, and other production tools of telecommunication services. As of December 31, 2018, the rating of the MTN Syariah Ijarah issued by Pefindo is idAAA sy (Triple A Syariah). Under the agreement, the Company is required to comply with all covenants or restrictions including maintaining financial ratios as follows: 1. 2. 3. As of December 31, 2018, the Company has complied with the above-mentioned ratios. c. Bank loans 2017 2018 Outstanding Outstanding Original Original currency Rupiah currency Rupiah Lenders Currency (in millions) equivalent (in millions) equivalent Related parties BNI Rp — 4,603 — 6,826 Bank Mandiri Rp — 1,126 — 4,546 BRI Rp — 2,166 — 1,248 Sub-total 7,895 12,620 Third parties MUFG Bank Rp — 1,944 — 3,011 US$ — — 10 144 Syndication of banks Rp — 2,250 — 1,750 US$ — — 37 532 Citibank Rp — — — 1,000 PT Bank Central Asia Tbk (“BCA”) Rp — 1,100 — 740 UOB Singapore US$ 49 664 49 710 Sumitomo Rp — 804 — 661 Bank CIMB Niaga Rp — 1,726 — 462 ANZ Rp — 440 — 440 UOB Rp — 500 — 428 DBS Rp — 144 — 379 PT Bank ICBC Indonesia ("ICBC") Rp — 249 — 204 Exim Bank of Malaysia Berhad MYR 37 124 23 81 Japan Bank for International Cooperation (“JBIC”) US$ 9 128 3 45 Others Rp — 26 — 33 MYR 15 50 13 46 Sub-total 10,149 10,666 Total 18,044 23,286 Unamortized debt issuance cost (40) (61) Gain on debt restructuring — (5) 18,004 23,220 Current maturities (Note 18b) (4,110) (4,472) Long-term portion 13,894 18,748 Refer to Note 33 for details of related party transactions. Other significant information relating to bank loans as of December 31, 2018 is as follows: Current Total period Principal Interest facility payment payment payment Interest rate Borrower Currency (in billions)* (in billions)* schedule period per annum Security BNI 2018 GSD Rp 182 8 2018 - 2021 Monthly Trade receivables (Note 6) 2013 - 2018 The Company, Telkomsel a , GSD, TLT, Sigma, Dayamitra, Telkom Infratel, Telkom Akses Rp 9,892 671 2016 - 2033 Monthly, 1 month JIBOR + 2.20% - 3.00%, Trade receivables (Note 6), Inventory (Note 8) and Property and equipment (Note 12) Bank Mandiri 2016 - 2018 The Company, Telkomsel a,c , Balebat, Telkomsat Rp 8,750 4,035 2017 - 2024 Monthly, 8.50%, 8.75%, Trade receivables (Note 6), Inventory (Note 8) and Property and equipment (Note 12) 2017 GSD, TII, Dayamitra Rp 845 — 2019 - 2024 Quarterly 3 months JIBOR + 1.85% None BRI 2013 GSD Rp 103 17 2014 - 2021 Monthly Trade receivables (Note 6), Property and equipment (Note 12) and lease agreement 2017 - 2018 The Company, Dayamitra Rp 1,200 — 2019 - 2025 Quarterly 3 months JIBOR + 1.85% None MUFG Bank 2015 - 2018 GSD, Metra, Infomedia, Dayamitra Rp 3,950 194 2016 - 2025 Quarterly 3 months JIBOR + 1.43% - 2.25% Property and equipment (Note 12) and lease agreement 2018 TII US$ 0.01 — 2019 - 2023 Quarterly 3 months LIBOR + 1.25% None Syndication of Banks 2015 The Company, GSD Rp 3,000 500 2016 - 2022 Quarterly 3 months JIBOR + 2.00% All Assets 2018 TII US$ 0.09 — 2020 - 2024 Semi-annually 6 months LIBOR + 1.25% None Citibank 2018 The Company Rp 1,000 — 2019 - 2020 Quarterly None Current Total period Principal Interest facility payment payment payment Borrower Currency (in billions)* (in billions)* schedule period Interest rate per annum Security BCA 2017 - 2018 Metra, Dayamitra, Telkom Infratel Rp 870 21 2018 - 2025 Quarterly 3 months JIBOR + 1.50% - 1.85% Property and equipment (Note 12) UOB Singapore 2016 TII US$ 0.06 — 2019 - 2024 Monthly 1 month LIBOR + 1.25% None Sumitomo 2015 - 2017 GSD, Metra, Infomedia, Dayamitra Rp 1,150 194 2016 - 2022 Quarterly 3 months JIBOR + 1.50% - 2.15% None Bank CIMB Niaga 2011 GSD Rp 78 8 2011 - 2021 Monthly Property and equipment (Note 12) and lease agreement 2017 GSD, Metra Rp 495 28 2018 - 2023 Quarterly 3 months JIBOR + 1.50% None ANZ 2015 – 2017 GSD, PINS Rp 750 — 2020 - 2022 Quarterly 3 months JIBOR + 2.00% Property and equipment (Note 12) UOB 2016 Dayamitra Rp 500 71 2018 - 2024 Quarterly 3 months JIBOR + 2.20% Property and equipment (Note 12) DBS 2016 - 2017 Nutech, Telkomsat Rp 136 17 2017 - 2022 Monthly, 9.17%, 11.00% Trade receivables (Note 6) and Property and equipment (Note 12) 2017 PINS, Dayamitra Rp 400 38 2018 - 2022 Quarterly 3 months JIBOR + 1.50% None ICBC 2017 GSD Rp 272 45 2017 - 2023 Quarterly 3 months JIBOR + 2.36% Trade receivables (Note 6) and Property and equipment (Note 12) Exim Bank of Malaysia Berhard 2016 TII MYR 0.06 0.014 2017 - 2020 Monthly ECOF + 1.89% None JBIC b 2013 The Company US$ 0.03 0.004 2014 - 2019 Semi-annually None 2013 The Company US$ 0.03 0.003 2014 - 2019 Semi-annually 6 months LIBOR + 1.20% None * In original currency a 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, 2018 Telkomsel has complied with the above covenants. b 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. c Based on the latest amendment on December 11, 2018. 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, 2018, the Group has complied with all covenants or restrictions, except for certain loans. As of December 31, 2018, the Group obtained waiver from lenders to not demand the loan payment as consequence of the breach of covenants. On March 13, 2015, the Company, GSD, Metra, and Infomedia entered into several credit facilities agreements with Sumitomo, MUFG Bank, ANZ, and syndication of banks (BCA and BNI) amounting to Rp750 billion, Rp750 billion, Rp500 billion, and Rp3,000 billion, respectively. Based on amendment on August 2, 2016, Dayamitra and Telkom Akses are included as borrowers into Sumitomo and MUFG Bank credit facilities agreement and excluded GSD from those agreement. Based on the latest amendment on March 13, 2017, PINS is included as one of borrower into ANZ’s credit facility agreement. In 2017, PINS drawn down the facility amounted to Rp200 billion. As of December 31, 2018 the unused facilities for Sumitomo, MUFG Bank, and ANZ amounted to Rp82.5 billion, Rp82.5 billion, and Rp60 billion, respectively. On March, 24, 2017, the Company, Dayamitra, Sigma, GSD, and TII entered several credit agreements with BRI, BNI, and Bank Mandiri amounting to Rp1,000 billion, Rp2,005 billion, and Rp1,500 billion, respectively. As of December 31, 2018, the unused facilities for Bank Mandiri amounted to Rp5 billion. On March 30, 2017, The Company, GSD, Metra, Dayamitra, PINS, and Telkomsat entered into several credit agreements with MUFG Bank, Sumitomo, DBS, Bank CIMB Niaga, and BCA amounting to Rp400 billion, Rp400 billion, Rp850 billion, Rp495 billion, and Rp850 billion, respectively. Based on amendment on June 29, 2017, Telkom Infratel is included as one of borrower into BCA’s credit facility agreement replaced PINS. As of December 31, 2018, the unused facilities for MUFG Bank, Sumitomo, DBS, Bank CIMB Niaga, and BCA amounted to Rp79 billion, Rp79 billion, Rp420 billion, Rp20 billion, and Rp564 billion, respectively. On March, 27, 2018, the Company, Dayamitra and TII entered into several credit agreements with BNI, BRI, Bank Mandiri, and MUFG Bank amounting to Rp825 billion, Rp700 billion, Rp775 billion, and Rp800 billion. As of December 31, 2018, the unused facilities for BNI, BRI, Bank Mandiri, and MUFG Bank amounting to Rp825 billion, Rp500 billion, Rp775 billion, and RpNil, respectively. The credit facilities were obtained by the Group for working capital purposes. d. Other borrowing Outstanding Lenders Currency 2017 2018 PT Sarana Multi Infrastruktur Rp 1,300 Unamortized debt issuance cost (5) (6) Total 1,295 Current maturities (Note 18b) (99) (294) Long-term portion 1,196 Refer to Note 33 for details of related party transactions. i. Dayamitra Current Total period Principal facility payment payment Interest rate Borrower Currency (in billions) (in billions) schedule per annum Security PT Sarana Multi Infrastruktur October 12, 2016 Dayamitra Rp 700 50 Semi-annually 3 months JIBOR+1.85% Property and equipment (Note 12) March 29, 2017 Dayamitra Rp 600 — Semi-annually 3 months JIBOR+1.85% Property and equipment (Note 12) Under the agreement, Dayamitra 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. Debt service coverage is at least 100%. As of December 31, 2018, Dayamitra has complied with the above-mentioned ratios. ii. The Company Current period Principal Total facility payment payment Interest rate Borrower Currency (in billions) (in billions) schedule per annum Security PT Sarana Multi Infrastruktur November 14, 2018 The Company Rp 1,000 — Semi-annually (2019-2023) 8.35 % None Under the 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 interest ratio should not be less than 4:1. 3. Debt service coverage is at least 125%. As of December 31, 2018, The Company has complied with the above-mentioned ratios. |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2018 | |
NON-CONTROLLING INTERESTS. | |
NON-CONTROLLING INTERESTS | 20. NON-CONTROLLING INTERESTS The details of non-controlling interests are as follow: 2017 2018 Non-controlling interests in net assets of subsidiaries: Telkomsel 18,891 17,770 GSD 186 212 Metra 115 174 TII 172 111 Total 19,364 18,267 2016 2017 2018 Non-controlling interests in net income (loss) of subsidiaries: Telkomsel 9,863 10,632 8,899 Metra (39) (83) 11 TII (3) 6 7 GSD (5) (5) (8) Total 9,816 10,550 8,909 Material partly-owned subsidiary As of December 31, 2017 and 2018, the non-controlling interest holds 35% ownership interest in Telkomsel which is considered material to the Company (Note 1d). The summarized financial information of Telkomsel below is provided based on amounts before elimination of intercompany balances and transactions. Summarized statements of financial position 2017 2018 Current assets 21,098 20,089 Non-current assets 64,499 62,130 Current liabilities (23,031) (20,775) Non-current liabilities (8,587) (10,667) Total equity 53,979 50,777 Attributable to: Equity holders of parent company 35,088 33,007 Non-controlling interest 18,891 17,770 Summarized statements of profit or loss and other comprehensive income 2016 2017 2018 Revenues 86,725 93,217 89,258 Operating expenses (49,765) (53,198) (55,408) Other income – net 483 380 124 Profit before income tax 37,443 40,399 33,974 Income tax expense – net (9,263) (10,018) (8,546) Profit for the year from continuing operations 28,180 30,381 25,428 Other comprehensive income net (222) (392) 356 Net comprehensive income for the year 27,958 29,989 25,784 Profit for the year attributable to non-controlling interest 9,863 10,632 8,899 Dividend paid to non-controlling interest 7,036 12,334 10,105 Summarized statements of cash flows 2016 2017 2018 Operating activities 42,827 39,564 36,848 Investing activities (12,794) (13,984) (16,095) Financing activities (24,132) (34,720) (24,867) Net (decrease) increase in cash and cash equivalents 5,901 (9,140) (4,114) |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2018 | |
CAPITAL STOCK. | |
CAPITAL STOCK | 21. CAPITAL STOCK The details of capital stock are as follows: 2017 Percentage of Total paid-in Description Number of shares ownership capital Series A Dwiwarna share Government 1 0 0 Series B shares Government 51,602,353,560 52.09 2,580 The Bank of New York Mellon Corporation* 6,078,374,280 6.14 304 Commissioners (Note 1b): Hendri Saparini 414,157 0 0 Hadiyanto 875,297 0 0 Rinaldi Firmansyah 147,100 0 0 Directors (Note 1b): Alex Janangkih Sinaga 920,349 0 0 Herdy Rosadi Harman 828,012 0 0 Abdus Somad Arief 828,314 0 0 Dian Rachmawan 888,854 0 0 Public (individually less than 5%) 41,376,586,676 41.77 2,069 Total 99,062,216,600 100.00 4,953 Treasury stock (Note 23) 1,737,779,800 0 87 Total 100,799,996,400 100.00 5,040 2018 Percentage of Total paid-in Description Number of shares ownership capital Series A Dwiwarna share Government 1 0 0 Series B shares Government 51,602,353,560 52.09 2,580 The Bank of New York Mellon Corporation* 4,944,921,880 4.99 247 Commissioners (Note 1b): Hendri Saparini 654,505 0 0 Rinaldi Firmansyah 454,113 0 0 Directors (Note 1b): Alex Janangkih Sinaga 1,683,359 0 0 Herdy Rosadi Harman 1,514,720 0 0 Abdus Somad Arief 1,515,022 0 0 Dian Rachmawan 1,575,562 0 0 Harry Mozarta Zen 689,492 0 0 David Bangun 1,000 0 0 Siti Choiriana 540 0 0 Public (individually less than 5%) 42,506,852,846 42.92 2,126 Total 99,062,216,600 100.00 4,953 * 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. Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 28 dated April 21, 2017 of Ashoya Ratam, S.H., M.Kn., the Company’s stockholders approved the distribution of cash dividend and special cash dividend for 2016 amounting to Rp11,611 billion (Rp117.21 per share) and Rp1,936 billion (Rp19.54 per share), respectively. Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 54 dated April 27, 2018 of Ashoya Ratam, S.H., M.Kn., the Company’s stockholders approved the distribution of cash dividend and special cash dividend for 2017 amounting to Rp13,287 billion (Rp134.13 per share) and Rp3,322 billion (Rp33.53 per share), respectively. The Company paid cash dividend and special cash dividend on May 31, 2018. |
ADDITIONAL PAID-IN CAPITAL
ADDITIONAL PAID-IN CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
ADDITIONAL PAID-IN CAPITAL. | |
ADDITIONAL PAID-IN CAPITAL | 22. ADDITIONAL PAID-IN CAPITAL The breakdown of additional paid-in capital is as follows: 2017 2018 Proceeds from sale of 933,333,000 shares in excess of par value through IPO in 1995 1,446 1,446 Excess of value over cost of selling 211,290,500 shares under the treasury stock plan phase I (Note 23) 544 544 Excess of value over cost of selling 215,000,000 shares under the treasury stock plan phase II (Note 23) 576 576 Excess of value over cost of treasury stock transferred to employee stock ownership program (Note 23) 228 228 Excess of value over cost of selling 22,363,000 shares under the treasury stock plan phase III (Note 23) 36 36 Excess of value over cost of selling 864,000,000 shares under the treasury stock plan phase IV (Note 23) 1,996 1,996 Capitalization into 746,666,640 Series B shares in 1999 (373) (373) Reduction additional paid in capital as a result of cancellation treasury stock (Note 23) — (2,454) Differences from acquisition of non-controlling interest — (22) Net 4,453 1,977 |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Dec. 31, 2018 | |
TREASURY STOCK. | |
TREASURY STOCK | 23. TREASURY STOCK Maximum Purchase Number of Phase Basis Period shares Amount I EGM December 21, 2005 - June 20, 2007 1,007,999,964 Rp5,250 II AGM June 29, 2007 - December 28, 2008 215,000,000 Rp2,000 III AGM June 20, 2008 - December 20, 2009 339,443,313 Rp3,000 - BAPEPAM - LK October 13, 2008 - January 12, 2009 4,031,999,856 Rp3,000 IV AGM May 19, 2011 - November 20, 2012 645,161,290 Rp5,000 Movements in treasury stock as a result of the repurchase of shares are as follows: 2017 2018 Number of Number of shares % Rp shares % Rp Beginning balance 1,737,779,800 1.72 2,541 1,737,779,800 1.72 2,541 Sale of treasury stock — — — (1,737,779,800) (1.72) (2,541) Ending balance 1,737,779,800 1.72 2,541 — — — 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 the 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 May 31, 2013, the Company offered all its eligible employees and those of its subsidiaries (collectively referred to as the “participants”), the right to purchase a fixed number of its shares at a certain price. The shares became an entitlement of the employees on the transaction dates and were no longer conditional on the satisfaction of any vesting conditions. Shares which were held by employees through the ESOP had a lock-up period that varied from 0 up to 12 months, depending on the position of the employee. In the lock-up period, participants could not transfer shares or have shares transactions either through or outside the stock exchange. Price per share offered was Rp10,714 and each participant received allowance (discount) of Rp5,575 per share. At the closing of this program, the Company had transferred a part of the treasury stock phase III to employees totalling 59,811,400 shares (equivalent to 299,057,000 shares after the stock split) with fair value amounting to Rp661 billion. The excess amounting to Rp228 billion in value of the treasury stock transferred over their acquisition cost was recorded as additional paid-in capital (Note 22). The difference amounting to Rp353 billion between the fair value of treasury stock and amount paid by the participants was recorded as part of “Personnel Expenses” in the 2013 consolidated statement of profit or loss and other comprehensive income. 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 22). 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 22). 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 22). The Company diverted shares of repurchase program phase I in 2013, shares of repurchase program phase II in 2014, and shares of repurchase program phase III in 2015. 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 22). At the AGM held on April 27, 2018, which were covered by notarial deed No. 54 of Ashoya Ratam, S.H., M.Kn., the stockholders approved for cancellation 1,737,779,800 shares of treasury stock with acquisition cost amounting to Rp2,541 billion by reduced the Company’s capital stock from 100,799,996,400 shares to 99,062,216,600 shares (decrease amounting to Rp87 billion). (Noted 21). |
OTHER RESERVES
OTHER RESERVES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER RESERVES. | |
OTHER RESERVES | 24. OTHER RESERVES Other reserves mainly consist of the translation reserve. The translation reserve consists of all foreign currency differences arising from the translation of the financial statements of foreign operations amounting to Rp296 billion and Rp430 billion as of December 31, 2017 and 2018, respectively. There were no reclassifications to profit or loss for the years ended December 31, 2016, 2017 and 2018. |
BASIC AND DILUTED EARNINGS PER
BASIC AND DILUTED EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
BASIC AND DILUTED EARNINGS PER SHARE | |
BASIC AND DILUTED EARNINGS PER SHARE | 25. 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 Rp19,333 billion, Rp22,120 billion and Rp17,802 billion by the weighted average number of shares outstanding during the year totaling 98,638,501,532 shares, 99,062,216,600 shares and 99,062,216,600 shares for the years ended December 31, 2016, 2017 and 2018, respectively. The weighted average number of shares takes into account the weighted average effect of changes in treasury stock transactions during the year. Basic earnings per share amounted to Rp195.99, Rp223.30 and Rp179.71 for the years ended December 31, 2016, 2017 and 2018, respectively. The Company does not have potentially dilutive financial instruments as of December 31, 2016, 2017 and 2018. |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2018 | |
REVENUES | |
REVENUES | 26. REVENUES The Group derives revenues in the following major product lines: Consolidated 2016 Mobile Consumer Enterprise WIB Others revenue Telephone revenues 38,407 4,175 3,232 237 — 46,051 Interconnection revenues 1,340 — — 2,807 — 4,147 Data, internet, and information technology service revenues Cellular internet and data 28,304 — — 3 — 28,307 Internet, data communication, and information technology services — 4,683 8,173 981 — 13,837 Short Messaging Services (“SMS”) 15,944 — 6 3 — 15,953 Pay TV — 1,007 104 — — 1,111 Others — 11 17 — 19 47 Total Data, internet, and information technology service revenues 44,248 5,701 8,300 987 19 59,255 Network revenues 3 11 301 632 — 947 Other revenues Sales of peripherals — — 1,489 — — 1,489 Manage service and terminal — — 784 4 — 788 Call center service — — 276 238 — 514 E-health — — 415 — — 415 E-payment — — 424 — — 424 Tower lease rental — — — 733 — 733 Others — 523 595 228 224 1,570 Total other revenues — 523 3,983 1,203 224 5,933 Total revenues 83,998 10,410 15,816 5,866 243 116,333 Adjustments and eliminations — — — — (224) Total external revenues as reported in 83,998 10,410 15,816 5,866 19 Consolidated 2017 Mobile Consumer Enterprise WIB Others revenue Telephone revenues 37,144 3,757 2,758 253 — 43,912 Interconnection revenues 1,672 — — 3,502 — 5,174 Data, internet, and information technology service revenues Cellular internet and data 37,951 — — 3 — 37,954 Internet, data communication, and information technology services — 6,070 8,033 980 — 15,083 Short Messaging Services (“SMS”) 13,091 — 99 2 — 13,192 Pay TV — 1,209 734 - — 1,943 Others — 14 177 37 126 354 Total Data, internet, and information technology service revenues 51,042 7,293 9,043 1,022 126 68,526 Network revenues 2 4 1,177 690 — 1,873 Other revenues Sales of peripherals — — 2,292 — — 2,292 Manage service and terminal — — 535 — — 535 Call center service — — 831 139 — 970 E-health — — 470 — — 470 E-payment — — 506 — — 506 Tower lease rental — — — 796 — 796 Others 213 51 1,518 1,037 383 3,202 Total other revenues 213 51 6,152 1,972 383 8,771 Total revenues 90,073 11,105 19,130 7,439 509 128,256 Adjustments and eliminations — — — — (383) Total external revenues as reported in 90,073 11,105 19,130 7,439 126 Consolidated 2018 Mobile Consumer Enterprise WIB Others revenue Telephone revenues 34,338 3,328 2,298 284 — 40,248 Interconnection revenues 933 — — 4,529 — 5,462 Data, internet, and information technology service revenues Cellular internet and data 41,033 — 3 — — 41,036 Internet, data communication, and information technology services — 6,872 10,247 1,016 8 18,143 Short Messaging Services (“SMS”) 9,046 0 251 1 — 9,298 Pay TV — 2,251 75 — — 2,326 Others — 20 486 208 130 844 Total Data, internet, and information technology service revenues 50,079 9,143 11,062 1,225 138 71,647 Network revenues 2 1 712 1,020 — 1,735 Other revenues Sales of peripherals — — 1,852 — — 1,852 Manage service and terminal — — 1,449 0 — 1,449 Call center service — — 877 167 8 1,052 E-health — — 563 — — 563 E-payment — — 449 — — 449 Others — 5 1,598 1,959 282 3,844 Total other revenues — 5 6,788 2,126 290 9,209 Total revenues from contract with customer 85,352 12,477 20,860 9,184 428 128,301 Revenues from other source — 1,414 164 909 — 2,487 Total revenues 85,352 13,891 21,024 10,093 428 130,788 Adjustments and eliminations (14) 0 30 (9) (298) Total external revenues as reported in 85,338 13,891 21,054 10,084 130 Management expects that most of the transaction price allocated to the unsatisfied contracts as of December 31, 2018 will be recognised as revenue during the next reporting period. Unsatisfied performance obligations as of December 31, 2018, which management expects to be realised within one year is Rp2,219 billion, and more than one year is Rp2,300 billion. There is no revenue from major customer which exceeds 10% of total revenues for the year ended December 31, 2018. Refer to Note 33 for details of related party transactions. |
PERSONNEL EXPENSES
PERSONNEL EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
PERSONNEL EXPENSES | |
PERSONNEL EXPENSES | 27. PERSONNEL EXPENSES The breakdown of personnel expenses is as follows: 2016 2017 2018 Salaries and related benefits 7,122 7,821 8,077 Vacation pay, incentives and other benefits 4,219 3,339 3,292 Pension benefit cost (Note 31) 1,068 1,700 1,120 Net periodic post-employment health care benefit cost (Note 31) 163 276 335 LSA expense (Note 32) 237 255 161 Other employee benefit cost (Note 31) 82 62 113 Other post-employment benefit cost (Note 31) 48 42 32 Early retirement program 628 — 1 Others 45 34 47 Total 13,612 13,529 13,178 Refer to Note 33 for details of related party transactions. |
OPERATION, MAINTENANCE AND TELE
OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES | |
OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES | 28. OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES The breakdown of operation, maintenance and telecommunication service expenses is as follows: 2016 2017 2018 Operation and maintenance 17,047 19,929 25,215 Radio frequency usage charges (Note 35c.i) 3,687 4,276 5,473 Leased lines and CPE 4,141 5,255 5,125 Concession fees and USO charges 2,217 2,249 2,297 Cost of sales of handset (Note 8) 1,481 1,544 1,860 Electricity, gas and water 960 1,037 1,051 Cost of SIM cards and vouchers (Note 8) 624 914 866 Tower leases 322 472 480 Vehicles rental and supporting facilities 367 301 413 Insurance 256 294 193 Others 161 332 920 Total 31,263 36,603 43,893 Refer to Note 33 for details of related party transactions. |
GENERAL AND ADMINISTRATIVE EXPE
GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |
GENERAL AND ADMINISTRATIVE EXPENSES | 29. GENERAL AND ADMINISTRATIVE EXPENSES The breakdown of general and administrative expenses is as follows: 2016 2017 2018 Provision for impairment of receivables 743 1,494 2,208 General expenses 1,626 1,449 1,792 Professional fees 594 498 823 Training, education and recruitment 399 531 463 Travelling 436 475 415 Meeting 207 241 233 Social contribution 134 197 181 Collection expenses 152 135 157 Others 319 240 322 Total 4,610 5,260 6,594 Refer to Note 33 for details of related party transactions. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2018 | |
TAXATION | |
TAXATION | 30. TAXATION a. Prepaid income taxes The breakdown of prepaid income taxes is as follows: 2017 2018 The Company - Corporate Income Tax 610 494 Subsidiaries - Corporate Income Tax 175 420 Total 785 914 Current portion (22) (20) Non-current portion (Note 13) 763 894 b. Prepaid other taxes The breakdown of prepaid other taxes is as follows: 2017 2018 The Company: Value Added Tax (“VAT”) 1,967 2,167 Article 22 - Witholding tax on goods delivery and import 1 — Article 23 - Witholding tax on service delivery 44 63 Subsidiaries: VAT 3,879 3,792 Article 23 - Withholding tax on services delivery 17 1 Total 5,908 6,023 Current portion (2,833) (3,325) Non-current portion (Note 13) 3,075 2,698 c. Current income tax liabilities The breakdown of current income tax liabilities is as follows: 2017 2018 The Company: Article 25 - Installment of corporate income tax 1 1 Subsidiaries: Article 25 - Installment of corporate income tax 37 14 Article 29 - Corporate income tax 763 389 Total 801 404 d. Other tax liabilities The breakdown of other tax liabilities is as follows: 2017 2018 The Company: Article 4 (2) - Final tax 26 18 Article 21 - Individual income tax 81 47 Article 22 - Withholding tax on goods delivery and imports 3 3 Article 23 - Withholding tax on services 29 36 Article 26 - Withholding tax on non-resident income 1 3 VAT - Tax collector 372 334 Sub-total 512 441 Subsidiaries: Article 4 (2) - Final tax 85 75 Article 21 - Individual income tax 129 113 Article 22 - Withholding tax on goods delivery and imports 3 5 Article 23 - Withholding tax on services 115 110 Article 26 - Withholding tax on non-resident income 303 7 VAT 842 25 Sub-total 1,477 335 Total 1,989 776 e. The components of income tax expense (benefit) are as follows: 2016 2017 2018 Current The Company 671 586 236 Subsidiaries 10,067 10,771 9,196 Sub-total 10,738 11,357 9,432 Deferred The Company (844) (1,608) (159) Subsidiaries (877) 209 93 Sub-total (1,721) (1,399) (66) Net income tax expense 9,017 9,958 9,366 f. Reconciliation of income tax expense 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 2017 2018 Profit before income tax 38,166 42,628 36,077 Less: income subject to final tax - net (1,684) (1,491) (1,277) Net 36,482 41,137 34,800 Income tax expense calculated at the Company’s applicable statutory tax rate of 20% 7,296 8,228 6,960 Difference in applicable statutory tax rate for subsidiaries 1,904 2,046 1,753 Non-deductible expenses 496 767 423 Final income tax expense 345 591 60 Deferred tax assets that cannot be utilized - net 56 4 (2) Deferred tax assets on fixed assets revaluation for tax purpose (1,415) (1,796) — Others 335 118 172 Net income tax expense 9,017 9,958 9,366 The details of the net income tax expense for the years ended December 31, 2016, 2017 and 2018 are as follows: 2016 2017 2018 Estimated taxable income (loss) of the Company 1,703 (861) 400 Corporate income tax: Current corporate income tax expense: The Company 340 — 80 Subsidiaries 10,053 10,766 9,193 Current income tax expense on tax assessment: The Company — — 99 Final tax expense: The Company 331 586 57 Subsidiaries 14 5 3 Total income tax expense - current 10,738 11,357 9,432 Income tax expense (benefit) - deferred - effect of temporary differences at enacted maximum tax rates: The Company Tax loss utilization (recognition) — (172) 172 Cost to obtain contracts — — 38 Net periodic pension and other post-employment benefits costs and provision for employee benefits (214) (235) 5 Finance leases 68 0 2 Valuation of long-term investments (34) — — Depreciation and gain on disposal or sale of property and equipment (825) (1,012) (180) Trade receivables write-off (provision for impairment of receivables) 41 (206) (132) Realization of accrual (accrual) of expenses and inventory write-off (provision for inventory obsolescence) 142 26 (36) Amortization of (addition to) deferred installation fee (10) 1 (18) Amortization of intangible assets, land rights and others (12) (10) (10) Net (844) (1,608) (159) Telkomsel Finance leases 164 177 170 Depreciation and gain on disposal or sale of property and equipment (913) (55) 64 Amortization of (addition to) license (4) 12 58 Provision for impairment of receivables (5) (41) (88) Provision for employee benefits (55) (68) (83) Net (813) 25 121 Subsidiaries - others - net (64) 184 (28) Net income tax benefit - deferred (1,721) (1,399) (66) Income tax expense - net 9,017 9,958 9,366 Tax Law No. 36/2008 with implementing rules under Government Regulation No. 56/2015 stipulates a reduction of 5% from the maximum rate applicable to qualifying listed companies, for those whose stocks are traded in the IDX which meet the prescribed criteria that the public owns 40% or more of the total fully paid and traded shares, and such shares are owned by at least 300 parties, with each party owning less than 5% of the total paid-up shares. These requirements must be met by a company for a period of 183 days in one tax year. The Company has met all of the required criteria; therefore, for the purpose of calculating income tax expense and liabilities for the financial reporting years ended December 31, 2016, 2017 and 2018, the Company has reduced the applicable tax rate by 5%. The Company applied the tax rate of 20% for the years ended December 31, 2016, 2017 and 2018. The subsidiaries applied the tax rate of 25% for the years ended December 31, 2016, 2017 and 2018. 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 2018 that will be reported to the tax office based on prevailing regulations. The amount of corporate income tax for the year ended December 31, 2017, is different with what was reported in the annual tax return due to adjustment of fiscal correction from tax assessment for fiscal year 2016. g. Tax assessments (i) The Company On November 15, 2013, the Company received Tax Underpayment Assessment Letters (“SKPKBs”) 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, and in December 2014, Tax Authorities issued a decision which rejected the objections. The Compan y accepted the assessment on the underpayment of VAT amounting to Rp22 billion (including penalty of Rp10 billion). The accepted portion was charged to the 2014 consolidated statement of profit or loss and other comprehensive income. The portion of VAT international incoming call interconnection amounting to Rp120 billion (including penalty of Rp39 billion) is recognised as claim for tax refund. On March 12, 2015, the Company has filed an appeal to the Tax Court on the rejection of its objection to the assessment of VAT international incoming call interconnection. On August 1 and 2, 2017, the Tax Court issued a verdict regarding to VAT international incoming call interconnection appeal process. The verdict stated that the international incoming call interconnection is the taxable services and categorized as export service that subject to 0% VAT and granted all the Company’s appeal. In September 2017, the Company received tax refund amounting to Rp115 billion and for remaining balance amounting to Rp5 billion has been compensated to tax collection letter ("STP") for withholding tax article 21 and SKPKBs of VAT on tax collected and self-assessed offshore VAT. On October 26 and November 23, 2017, the Company received a notification from Tax Court that Tax Authorities filed a request for judicial review. On November 23 and December 21, 2017, to response the judicial review from Tax Authorities, the Company sent contra memorandum for judicial review to Supreme Court (“SC”). In September and November 2018, the Company received the verdict from the SC as the result of the tax audit for tax period June to August and November 2007. Based on the verdict, the SC rejected the Tax Authorities' judicial review and strengthen the Tax Court's verdict. As of the date of approval and authorization for the issuance of these consolidated financial statements, the judicial review for tax period May 2007 is still in process. In November 2014, the Company received SKPKBs from the Tax Authorities as the result of the tax audit for fiscal year 2011. 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 amounting to Rp2.8 billion (including penalty of Rp929 million). The accepted portion amounting to Rp4.7 billion (including penalty of Rp2 billion) was charged to the 2014 consolidated financial statement of profit or loss and other comprehensive income. The portion of VAT international incoming call interconnection amounting to Rp178 billion (including penalty of Rp58 billion) is recognised as claim for tax refund. On January 7, 2015, the Company filed an objection and on October 20, 2015, Tax Authorities issued a rejection regarding this objection. On January 20, 2016, the Company filed an appeal on the decision of its objection. On April 4 and 5, 2017, the Tax Court issued a verdict regarding to VAT international incoming call interconnection appeal process. The verdict stated that the international incoming call interconnection is the taxable services and categorized as export service that subject to 0% VAT and granted the Company’s appeal for the tax period January and September to December 2011. Tax Court rejected the Company’s appeal for the tax period February to August 2011, since the Company did not meet the administrative requirement. Regarding this rejection, on June 19 and 21, 2017, the Company filed the request for judicial review. On October 15, 2018, the Company received a notification from Tax Court that Tax Authorities filed a request for judicial review for the tax period January and September to December 2011. On November 13, 2018, to response the judicial review from Tax Authorities, the Company sent contra memorandum for judicial review to SC for the tax period January and September to December 2011. In November 2018, the Company received a notification from Tax Court that Tax Authorities filed a contra memorandum for judicial review for the tax period February to August 2011. As of the date of approval and authorization for the issuance of these consolidated financial statements, the judicial review is still in process. On May 3, 2016, the Tax Authorities issued Field Tax Audit Notification Letter for tax period January to December 2012. On November 3, 2016, Tax Authorities issued SKPKBs for fiscal year 2012, wherein the Company was liable for underpayment of corporate income tax amounting to Rp991.6 billion (including penalty of Rp321.6 billion), VAT underpayment amounting to Rp467 billion (including penalty of Rp153.5 billion ), self-assessed offshore VAT underpayment amounting to Rp1.2 billion (including penalty of Rp392 million), VAT on tax collected underpayment amounting to Rp57 billion (including penalty of Rp18.5 billion). The Company also received STP for VAT amounting to Rp37.5 billion , withholding tax article 21 underpayment amounting to Rp16.2 billion (including penalty of Rp5.3 billion), final withholding tax article 21 underpayment amounting to Rp1.2 billion (including penalty of Rp407 million), withholding tax article 23 underpayment amounting to Rp63.5 billion (including penalty of Rp20.6 billion), withholding tax article 4(2) underpayment amounting to Rp25 billion (including penalty of Rp8.1 billion) and withholding tax article 26 underpayment amounting to Rp197.6 billion (including penalty of Rp64 billion). The Company has agreed to the recalculation of input tax credit on international incoming call interconnection services amounting to Rp35 billion, corporate income tax amounting to Rp613 million and withholding tax article 26 amounting to Rp311.5 million that have been charged in the 2016 consolidated statement of profit or loss and other comprehensive income. The Company filed an objection regarding to the remaining assessments on November 16, 2016. On March 1, 2017 and May 9, 2017, the Company received the Decision Letter from Directorate General of Taxes ("DGT") for the underpayment of self-assessed offshore VAT amounting to Rp1.8 million (including penalty of Rp0.6 million) and the underpayment of VAT on tax collected amounting to Rp4.4 billion (including penalty of Rp1.4 billion). The Company decided to accept the decision. On October 19, 2017, the Tax Authorities issued Decision Letter on Company’s objections, wherein the Tax Authorities has reduced Company’s underpayment. Based on Decision Letter, the Company was liable for underpayment of withholding tax article 21 amounting to Rp20.7 billion (including penalty of Rp6.7 billion), underpayment of final withholding tax article 21 amounting to Rp23.8 billion (including penalty of Rp7.7 billion), underpayment of withholding tax article 23 amounting to Rp115.7 billion (including penalty of Rp37.5 billion), underpayment of withholding tax article 4(2) amounting to Rp25 billion (including penalty of Rp8.1 billion), underpayment of withholding tax article 26 amounting to Rp197.6 billion (including penalty of Rp64.1 billion) and underpayment of corporate income tax amounting to Rp496.4 billion (including penalty of Rp161 billion). On October 30 and 31, 2017, the Tax Authorities issued Decision Letter on Company’s objection, wherein the Tax Authorities has reduced Company’s underpayment for VAT from the tax period January to December 2012 totaling to Rp429.3 billion (including penalty of Rp141.2 billion). On January, 17 and 26, 2018, the Company filed an appeal on the rejection of its objection. As of the date of approval and authorization for the issuance of these consolidated financial statements, the appeal is still in process. On August 23, 2016, the Tax Authorities issued Field Tax Audit Notification Letter for tax period January to December 2015 regarding overpayment of corporate income tax amounting to Rp414 billion. On April 25, 2017, the Tax Authorities issued Tax Overpayment Assessment Letter (“SKPLB”) for overpayment of corporate income tax amounting to Rp147 billion, and SKPKBs for underpayment of VAT amounting to Rp13 billion (including penalty of Rp4 billion), underpayment of VAT on tax collected amounting to Rp6 billion (including penalty of Rp1.5 billion), underpayment of self-assessed offshore VAT amounting to Rp55 billion (including penalty of Rp17 billion). The Company also received STP for VAT amounting to Rp34 billion, VAT on tax collected amounting to Rp7 billion and self-assessed offshore VAT amounting to Rp8 billion. The Company accepted tax audit decision amounting to Rp17 billion for corporate income tax, to transfer deductible temporary differences related to provision for incentives to fixed wireless (Flexi) subscribers’ migration amounting to Rp42 billion from Annual Tax Return of corporate income tax fiscal year 2015 to Annual Tax Return of corporate income tax fiscal year 2016. The Company also accepted underpayment of VAT, underpayment of VAT on tax collected and STP for VAT on tax collected totaling to Rp26 billion. The accepted portion was charged to the 2017 consolidated financial statement of profit or loss and other comprehensive income. On July 24, 2017, the Company filed Objection Letter to the Tax Authorities for corporate income tax amounting to Rp210.5 billion and self-assessed offshore VAT amounting to Rp55 billion. On May 3 and 22, 2018, the Tax Authorities issued Decision Letter on Company’s objections for SKPLB of self-assessed offshore VAT amounting to Rp54 billion and granted all the Company’s objection. On July 18, 2018, the Tax Authorities issued Decision Letter on Company’s objections for SKPLB of corporate income tax, wherein the Tax Authorities has granted the several Company’s objection and additional amount of overpayment which should be received amounting to Rp76 billion. On October 10, 2018, the Company filed an appeal. As of the date of approval and authorization for the issuance of these consolidated financial statements, the appeal is still in process. On August 25, 2017, the Tax Authorities issued Field Tax Audit Notification Letter for tax periods January to December 2016 regarding overpayment of corporate income tax amounting to Rp114.4 billion. On June 7, 2018, Tax Authorities issued SKPLB of corporate income tax amounting to Rp15.3 billion, SKPKB of withholding tax article 26 amounting to Rp557 million (including penalty of Rp180 million) and SKPLB of VAT amounting to Rp923 billion. The Company accepted the assessment on the overpayment of corporate income tax amounting to Rp15.3 billion and for the remaining balance amounting to Rp99.1 billion was charged as current income tax expense on tax assesment, underpayment of withholding tax article 26 and correction of VAT In totaling to Rp10.5 billion, STP for VAT on tax collected amounting to Rp7.1 billion, VAT on free gifts amounting to Rp7.3 billion, VAT on transfer asset amounting to Rp1.2 billion and STP for VAT amounting to Rp1.7 billion. The accepted portion was charged to the consolidated financial statement of profit or loss and other comprehensive income. In July 2018, the Company received tax refund amounting to Rp882.7 billion and for the remaining balance amounting to Rp39.9 billion has been compensated to STP for VAT amounting to Rp31.9 billion, VAT on tax collected amounting to Rp7.1 billion, withholding tax article 23 amounting to Rp556 million and withholding tax article 21 amounting to Rp300 million. On August 31, 2018, the Company filed an objection to the Tax Authorities for VAT international incoming call interconnection services amounting to Rp151 billion and STP for VAT amounting to Rp30.3 billion. As of the date of approval and authorization for the issuance of these consolidated financial statements, the objection is still in process. On September 11, 2017 and January 9, 2018, the Tax Authorities issued Field Tax Audit Notification Letter for tax period December and November 2014 regarding claim for tax refund overpayment of VAT correction for tax period November and December 2014 amounting to Rp129 billion and Rp86.7 billion, respectively. On July 25 and September 7, 2018, the Company received SKPLB for tax period December and November 2014. On August 24, 2018, the Company received tax refund amounting to Rp122.5 billion for December 2014 period. In October 2018, the Company received tax refund amounting to Rp80.8 billion and for the remaining balance amounting to Rp3.6 billion has been compensated to SKPKBs for self-assessed offshore VAT for tax period March, April and June 2015, STP for VAT for tax period November 2014, and other tax assessment letters. On November 6, 2018, the Tax Authorities issued Field Tax Audit Notification Letter for tax period 2017 for all taxes. As of the date of approval and authorization for the issuance of these consolidated financial statements, the tax audit is still in process. (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 SC. On August 19, 2016, Telkomsel received a notification from the Tax Court that the Tax Authorities filed a request for judicial review to SC for the VAT case amounting to Rp108 billion. Telkomsel filed a contra memorandum for judicial review to the SC on September 14, 2016. In April 2017, Tax Authorities has granted Telkomsel’s claim on interest income will be compensate against corporate income tax installment for the period of April 2017. In July 2018, Telkomsel received the official verdict from the SC which rejected the Tax Authorities request. On April 21, 2010, the Tax Authorities filed a request for judicial review to the SC for the Tax Court’s acceptance of Telkomsel’s request to cancel the 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 memorandum for judicial review to the SC. On March 2, 2017, Telkomsel received the official verdict from the SC which accept the Tax Authorities request. The penalty was paid in June 2017. In May and June 2012, Telkomsel received the refund of the penalty on the 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 request for judicial review to the SC on the Tax Court’s Verdict. On September 14, 2012, Telkomsel filed a contra memorandum for judicial review to the SC. In July 2016, conservatively, Telkomsel recognised the tax penalty of Rp15.7 billion as expense based on its previous experience on a similar income tax case. On May 24, 2012, Telkomsel filed an objection to the Tax Authorities for the 2010 underpayment of VAT of Rp290.6 billion (including penalty of Rp67 billion) and recorded it as a claim for tax refund. On May 9, 2017, Telkomsel received the official verdict from the SC which rejected Telkomsel’s request, therein Telkomsel paid the underpayment on July 10, 2017. On July 19, 2017, Telkomsel filed the second judicial review to contest against the SC’s verdict. On August 8, 2018, the SC accepted Telkomsel’s request. Telkomsel received Surat Pelaksanaan Putusan Peninjauan Kembali (“SP2PK”). In July and October 2017, Telkomsel received notifications that the Tax Authorities had filed a request for judicial reviews to the SC for cases relating to corporate income tax and VAT amounting to Rp62 billion and Rp1.2 billion, respectively. Telkomsel submitted its contra memorandum for judicial review in August and November 2017. As of the date of approval and authorization for the issuance of these consolidated financial statements, Telkomsel has received partial official verdicts from the SC which rejected the Tax Authorities’s request for VAT case amounting to Rp1.1 billion. On July 28, 2016 and March 24, 2017, Telkomsel received the tax audit instruction letter for compliance of fiscal year 2014 and 2015, respectively. As of the date of approval and authorization for the issuance of these consolidated financial statements, the tax audit is still in progress. h. 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. 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 a KJPP to perform fixed assets revaluation of the Company. The Company submitted the fixed asset 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 submitted its fixed assets revaluation application for Phase 2 to DGT and expects to be eligible for 6% tax rate. In its application, the Company estimated a revaluation increment of Rp8,961 billion with estimated final income tax of Rp538 billion. In 2017, t he Company received fixed asset revaluation report from KJPP. Based on the report, the value of fixed asset increased amounting to Rp8,982 billion with related final income tax amounting to Rp540 billion. The Company has paid final income tax amounting to Rp2 billion as addition on September 22, 2017 and November 15, 2017. On November 21, 2017, DGT issued approval regarding fixed assets revaluation amounting to Rp8,982 billion with related final income tax amounting to Rp540 billion. A deductible temporary difference arose on this fixed assets revaluation for tax purposes since the tax base of the fixed assets is higher than their carrying amount. The deductible temporary difference results in a deferred tax asset since the economic benefits will flow to the Company in a form of reduction of taxable income in the future periods when the assets are recovered. In 2016 and 2017, the Company recognised deferred tax assets amounting to Rp1,415 billion and Rp1,796 billion, respectively, on the phase 1 and phase 2 revaluation increment on fixed assets as approved by the DGT. i. Deferred tax assets and liabilities The details of deferred tax assets and liabilities are as follows: (Charged) Credited to other (Charged) December 31, credited to profit comprehensive credited December 31, 2016 or loss income to equity 2017 The Company Deferred tax assets: Net periodic pension and other post-employment benefit costs 563 197 342 — 1,102 Provision for impairment of receivables 388 206 — — 594 Provision for employee benefits 209 38 — — 247 Difference between accounting and tax bases of property and equipment (772) 1,012 — — 240 Fiscal loss — 172 — — 172 Deferred installation fee 75 (1) — — 74 Accrued expenses and provision for inventory obsolescence 69 (26) — — 43 Finance leases 1 — — 1 Total deferred tax assets 533 1,598 342 — 2,473 Deferred tax liabilities: Valuation of long-term investment (11) — — — (11) Land rights, intangible assets and others (11) 10 — — (1) Total deferred tax liabilities (22) 10 — — (12) Deferred tax assets of the Company - net 511 1,608 342 — 2,461 Deferred tax assets of the other subsidiaries - net 258 (20) 9 96 343 Telkomsel Deferred tax assets: Provision for employee benefits 478 68 131 — 677 Provision for impairment of receivables 143 41 — — 184 Total deferred tax assets 621 109 131 — 861 Deferred tax liabilities: Finance leases (549) (177) — — (726) Difference between accounting and tax bases of property and equipment (482) 55 — (125) (552) License amortization (48) (12) — — (60) Total deferred tax liabilities (1,079) (134) — (125) (1,338) Deferred tax liabilities of Telkomsel - net (458) (25) 131 (125) (477) Deferred tax liabilities of the other subsidiaries - net (287) (164) 12 (17) (456) Total deferred tax liabilities - net (745) (189) 143 (142) (933) Total deferred tax assets - net 769 1,588 351 96 2,804 Effect of Adoption of new (Charged) Charged to other December 31, accounting credited to profit comprehensive Charged December 31, 2017 standards or loss income to equity 2018 The Company Deferred tax assets: Net periodic pension and other post-employment benefit costs 1,102 — 27 (466) — 663 Provision for impairment of receivables 594 (40) 132 — — 686 Provision for employee benefits 247 — (32) — — 215 Difference between accounting and tax bases of property and equipment 240 — 180 — — 420 Deferred installation fee 74 — 18 — — 92 Accrued expenses and provision for inventory obsolescence 43 — 36 — — 79 Land rights, intangible assets and others (1) — 10 — — 9 Fiscal loss 172 — (172) — — — Total deferred tax assets 2,471 (40) 199 (466) — 2,164 Deferred tax liabilities: Cost to obtain contracts — (42) (38) — — (80) Valuation of long-term investment (11) — — — — (11) Finance leases 1 — (2) — — (1) Total deferred tax liabilities (10) (42) (40) — — (92) Deferred tax assets of the Company - net 2,461 (82) 159 (466) — 2,072 Deferred tax assets of the other subsidiaries - net 343 0 75 (8) (5) 405 Telkomsel Deferred tax assets: Provision for employee benefits 677 — 83 (119) — 641 Provision for impairment of receivables 184 98 88 — — 370 Total deferred tax assets 861 98 171 (119) — 1,011 Deferred tax liabilities: Finance leases (726) — (170) — — (896) Difference between accounting and tax bases of property and equipment (552) — (64) — — (616) License amortization (60) — (58) — — (118) Total deferred tax liabilities (1,338) — (292) — — (1,630) Deferred tax liabilities of Telkomsel - net (477) 98 (121) (119) — (619) Deferred tax liabilities of the other subsidiaries - net (456) (16) (47) (5) (54) (578) Total deferred tax liabilities - net (933) 82 (168) (124) (54) (1,197) Total deferred tax assets - net 2,804 (82) 234 (474) (5) 2,477 As of December 31, 2017 and 2018, the aggregate amounts of temporary differences associated with investments in subsidiaries and associated companies, for which deferred tax liabilities have not been recognised were Rp31,783 billion and Rp31,296 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 reduced if actual future taxable income is lower than estimates. j. Administration From 2008 to 2018, 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 Government Regulation No. 77/2013 and the latest by Government Regulation No. 56/2015 in conjunction with PMK No. 238/PMK.03/2008. On the basis of historical data, for the year ended December 31, 2018, 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 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 from the time the tax became due, but not later than 2013, while for fiscal years 2008 and onwards, the period is within five years from 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 of 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 the VAT, PPnBM and also income tax article 22 in accordance with the Regulations. |
PENSION AND OTHER POST-EMPLOYME
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | 12 Months Ended |
Dec. 31, 2018 | |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | 31. PENSION AND OTHER POST-EMPLOYMENT BENEFITS The details of pension and other post-employment benefit liabilities are as follows: Notes 2017 2018 Pension benefit and other post-employment benefit obligations Pension benefit The Company - funded 31a.i.a Defined pension benefit obligation 31a.i.a.i 1,540 1,057 Additional pension benefit obligation 31a.i.a.ii 1,076 6 The Company - unfunded 31a.i.b 2,384 1,830 Telkomsel 31a.ii 1,839 1,541 Telkomsat 0 0 MD Media 0 0 Infomedia 0 — Projected pension benefit obligations 6,839 4,434 Net periodic post-employment health care benefit 31b 2,419 195 Other post-employment benefit 31c 510 419 Obligation under the Labor Law 31d 427 507 Total 10,195 5,555 The details of net pension benefit expense recognised in the consolidated statements of profit or loss and other comprehensive income is as follows: Notes 2016 2017 2018 Pension benefit cost The Company - funded 31a.i.a Defined pension benefit obligation 31a.i.a.i 608 557 511 Additional pension benefit obligation 31a.i.a.ii — 657 69 The Company - unfunded 31a.i.b 279 239 198 Telkomsel 31a.ii 181 247 342 MD Media 0 0 0 Infomedia 0 0 0 Telkomsat 0 0 0 Total pension benefit cost 27 1,068 1,700 1,120 Net periodic post-employment health care benefit cost 27,31b 163 276 335 Other post-employment benefit cost 27,31c 48 42 32 Obligation under the Labor Law 27,31d 82 62 113 Total 1,361 2,080 1,600 The details of net pension benefit expense recognised in the consolidated statements of profit or loss and other comprehensive income is as follows (continued): The amounts recognised in OCI are as follows: Notes 2016 2017 2018 Defined benefit plan actuarial gain (losses) The Company - funded 31a.i.a Defined pension benefit obligation 31a.i.a.i (492) (1,154) 1,236 Additional pension benefit obligation 31a.i.a.ii — (419) 934 The Company - unfunded 31a.i.b (119) (100) 137 Telkomsel 31a.ii (292) (530) 514 MD Media (1) (2) 0 Infomedia 0 (1) 0 Telkomsat 0 0 0 Post-employment health care benefit cost 31b (1,309) (551) 2,559 Other post-employment benefit 31c (20) (40) 24 Obligation under the Labor Law 31d (33) (72) 14 Sub-total (2,266) (2,869) 5,418 Deferred tax effect at the applicable tax rates 30i 208 494 (598) Defined benefit plan actuarial (losses) gain - net of tax (2,058) (2,375) 4,820 a. Pension benefit cost i. The Company a. Funded pension plan i. Defined pension benefit obligation The Company sponsors a defined benefit pension plan for employees with permanent status prior to July 1, 2002. The plan is governed by the pension laws in Indonesia and managed by Telkom Pension Fund (“Dana Pensiun Telkom” or “Dapen”). The pension benefits are paid based on the participating employees’ latest basic salary at retirement and the number of years of their service. The participating employees contribute 18% (before March 2003: 8.4%) of their basic salaries to the pension fund. The Company did not make contributions to the pension fund for the years ended December 31, 2016, 2017 and 2018. 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 recognised in the consolidated statements of financial position as of December 31, 2017 and 2018, under the defined benefit pension plan: 2017 2018 Changes in projected pension benefit obligations Projected pension benefit obligations at beginning of year 18,849 22,354 Charged to profit or loss: Service costs 366 384 Past service cost - plan amendments 94 — Interest costs 1,454 1,459 Pension plan participants’ contributions 41 38 Actuarial losses (gain) recognised in OCI 2,862 (2,691) Pension benefits paid (1,312) (1,423) Projected pension benefit obligations at end of year 22,354 20,121 Changes in pension benefit plan assets Fair value of pension plan assets at beginning of year 19,046 20,814 Interest income 1,388 1,357 Return on plan assets (excluding amount included in net interest expense) 1,708 (1,455) Pension plan participants’ contributions 41 38 Pension benefits paid (1,312) (1,423) Provision of additional benefit — (205) Plan administration cost (57) (62) Fair value of pension plan assets at end of year 20,814 19,064 Projected pension benefit obligations at end of year (1,540) (1,057) As of December 31, 2017 and 2018, plan assets consist of: 2017 2018 Quoted in Quoted in active market Unquoted active market Unquoted Cash and cash equivalents 1,481 — 873 — Equity instruments: Finance 1,463 — 1,456 — Consumer goods 1,411 — 1,336 — Infrastructure, utilities and transportation 656 — 530 — Construction, property and real estate 363 — 199 — Basic industry and chemical 115 — 124 — Trading, service and investment 388 — 420 — Mining 92 — 112 — Agriculture 46 — 55 — Miscellaneous industries 377 — 362 — Equity-based mutual fund 1,233 — 1,336 — Fixed income instruments: Corporate bonds — 5,428 — 5,267 Government bonds 6,968 — 6,166 — Mutual funds 54 — 54 — Non-public equity: Direct placement — 237 — 288 Property — 188 — 178 Others — 314 — 308 Total 14,647 6,167 13,023 6,041 Pension plan assets include Series B shares issued by the Company with fair values totalling Rp469 billion and Rp372 billion, representing 2.25% and 1.95% of total plan assets as of December 31, 2017 and 2018, respectively, and bonds issued by the Company with fair value totalling Rp340 billion and Rp314 billion, representing 1.64% and 1.65% of total plan assets as of December 31, 2017 and 2018, respectively. The expected return is determined based on market expectation for returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets was Rp3,039 billion and Rp(158) billion for the years ended December 31, 2017 and 2018, 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, 2018, Dapen’s FSR is below 105%. Therefore, the Company will make contributions to the defined benefit pension plan in 2019. Based on the Company's policy issued on June 7, 2017 regarding Pension Regulation by Dapen, the Company provided other benefits in the form of additional benefit in 2017 amounted to Rp4.5 million to monthly pension beneficiaries who retired before end of June 2002 and Rp2.25 million to monthly pension beneficiaries who retired starting from the end of June 2002 until the end of April 2017. The movement of the projected pension benefit obligations for the years ended December 31, 2017 and 2018 are as follow: 2017 2018 Projected pension benefit obligations (prepaid pension benefit cost) at beginning of year (197) 1,540 Net periodic pension benefit cost 583 548 Provision of additional pension benefit — 205 Actuarial losses (gain) recognised in OCI 2,862 (2,691) Return on plan assets (excluding amount included in net interest expense) (1,708) 1,455 Projected pension benefit obligations at end of year 1,540 1,057 The components of net periodic pension benefit cost for the years ended December 31, 2016, 2017 and 2018 are as follows: 2016 2017 2018 Service costs 363 366 384 Past service cost - plan amendments 245 94 — Plan administration cost 46 57 62 Net interest cost (14) 66 102 Net periodic pension benefit cost 640 583 548 Amount charged to subsidiaries under contractual agreements (32) (26) (37) Net periodic pension benefit cost less cost charged to subsidiaries 608 557 511 Amounts recognised in OCI are as follow: 2016 2017 2018 Actuarial losses (gain) recognised during the year due to: Experience adjustments 70 163 329 Changes in demographic assumptions 140 — — Changes in financial assumptions 1,470 2,699 (3,020) Return on plan assets (excluding amount included in net interest expense) (1,188) (1,708) 1,455 Net 492 1,154 (1,236) The actuarial valuation for the defined benefit pension plan was performed based on the measurement date as of December 31, 2016, 2017 and 2018, with reports dated February 22, 2017, February 27, 2018, and April 1, 2019, 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, 2017 and 2018 are as follows: 2016 2017 2018 Discount rate 8.00 % 6.75 % 8.25 % Rate of compensation increases 8.00 % 8.00 % 8.00 % Indonesian mortality table ii. Additional pension benefit obligation Based on the Company’s policy issued on June 7, 2017 regarding Pension Regulation by Dapen, the Company established additional benefit fund at maximum 10% of surplus of defined benefit plan, when FSR is above 105% and return on investment is above actuarial discount rate of pension fund. The additional pension benefit obligation for the year ended December 31, 2018 is as follows: 2017 2018 Changes in projected pension benefit obligations Projected pension benefit obligations at beginning of year — 1,076 Charged to profit or loss: Past service costs 657 — Interest costs — 69 Actuarial losses (gain) recognised in OCI 419 (948) Pension benefits paid — (93) Projected pension benefit obligations at end of year 1,076 104 Changes in pension benefit plan assets Fair value of pension plan assets at beginning of year — — Provision of additional benefit — 205 Return of benefit plan assets — (14) Pension benefits paid — (93) Fair value of pension plan assets at end of year — 98 Projected pension benefit obligations at end of year (1,076) (6) As of December 31, 2018, there is no plan asset on additional pension benefits funds determined by management of Dapen with the approval of the Oversight Board. Changes in additional pension benefit obligation for the years ended December 31, 2017 and 2018 are as follow: 2017 2018 Additional pension benefit obligation at beginning of year — 1,076 Past service cost 657 — Interest costs — 69 Provision of additional benefit — (205) Actuarial loss (gain) recognised in OCI 419 (948) Return on plan asset — 14 Projected additional pension benefit obligation at end of year 1,076 6 The components of additional pension benefit cost for the years ended December 31, 2017 and 2018 are as follows: 2017 2018 Past service costs 657 — Net interest costs — 69 Pension benefit costs 657 69 Amounts recognised in OCI for the years ended December 31, 2017 and 2018 are as follow: 2017 2018 Actuarial (gain) losses recognised during the year due to: Experience adjustment — (773) Changes in financial assumption 419 (175) Return on plan assets (excluding amount included in net interest expense) — 14 Total 419 (934) The actuarial valuation for the additional pension benefit plan was performed based on the measurement date as of December 31, 2017 and 2018, with report dated February 27, 2018 and April 1, 2019, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary for the year ended December 31, 2017 and 2018 is as follows: 2017 2018 Rate of return on investment 9.50%-10.25 % 9.30%-10.00 % Discount rate 6.75 % 8.25 % Actuarial discount rate of pension fund 9.25-9.50 % 9.25-9.50 % Rate of compensation increases 8.00 % 8.00 % Indonesian mortality table b. Unfunded pension plan 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 with permanent status hired 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 Rp10 billion and Rp13 billion for the years ended December 31, 2017 and 2018, respectively. Since 2007, the Company has provided pension benefit based on uniformization for both participants prior to and from April 20, 1992 effective for employees retiring beginning February 1, 2009. In 2010, the Company replaced the uniformization 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 in the unfunded projected pension benefit obligations for MPS and MPP for the years ended December 31, 2017 and 2018: 2017 2018 Unfunded projected pension benefit obligations at beginning of year 2,507 2,384 Charged to profit or loss: Service costs 51 54 Net interest costs 188 144 Actuarial losses (gain) recognised in OCI 100 (137) Benefits paid by employer (462) (615) Unfunded projected pension benefit obligations at end of year 2,384 1,830 The components of total periodic pension benefit cost for the years ended December 31, 2016, 2017 and 2018 are as follows: 2016 2017 2018 Service costs 64 51 54 Net interest costs 215 188 144 Total periodic pension benefit cost 279 239 198 Amounts recognised in OCI are as follow: 2016 2017 2018 Actuarial losses (gain) recognised during the year due to: Experience adjustments (9) 19 27 Changes in demographic assumptions 30 — (21) Changes in financial assumptions 98 81 (143) Net 119 100 (137) The actuarial valuation for the defined benefit pension plan was performed, based on the measurement date as of December 31, 2016, 2017 and 2018, with reports dated February 22, 2017, February 27, 2018 and April 1, 2019, respectively, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary for the years ended December 31, 2016, 2017 and 2018 are as follow: 2016 2017 2018 Discount rate 7.75%-8.00 % 6.00%- 6 .75 % 8.00%- 8 .25% Rate of compensation increases 6.10%-8.00 % 6.10%-8.00 % 6.10%- 8 .00% Indonesian mortality table ii. Telkomsel Telkomsel sponsors 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 (excluding functional allowance) and 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 Rp131 billion and Rp125 billion for the years ended December 31, 2017 and 2018, 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 recognised in the consolidated statement of financial position for the years ended December 31, 2017 and 2018, under Telkomsel’s defined benefit pension plan: 2017 2018 Changes in projected pension benefit obligation Projected pension benefit obligation at beginning of year 2,034 2,928 Charged to profit or loss: Service costs 149 213 Net Interest costs 167 203 Actuarial losses (gain) recognised in OCI 584 (583) Benefit paid (6) (27) Projected pension benefit obligation at end of year 2,928 2,734 Changes in pension benefit plan assets Fair value of plan assets at beginning of year 841 1,089 Interest income 69 74 Return on plan assets (excluding amount included in net interest expense) 54 (68) Employer’s contributions 131 125 Benefit paid (6) (27) Fair value of pension plan assets at end of year 1,089 1,193 Pension benefit obligation at end of year 1,839 1,541 Movements of the Pension benefit obligation during the years ended December 31, 2017 and 2018: 2017 2018 Pension benefit obligation at beginning of year 1,193 1,839 Periodic pension benefit cost 247 342 Actuarial losses (gain) recognised in OCI 584 (583) Return on plan assets (excluding amount included in net interest expense) (54) 68 Employer’s contributions (131) (125) Pension benefit obligation at end of year 1,839 1,541 The components of the periodic pension benefit cost for the years ended December 31, 2016, 2017 and 2018 are as follow: 2016 2017 2018 Service costs 107 149 213 Net interest costs 74 98 129 Total 181 247 342 Amounts recognised in OCI are as follow: 2016 2017 2018 Actuarial (gain) losses recognised during the year due to: Experience adjustments 32 (77) 192 Changes in financial assumptions 360 661 (774) Return on plan assets (excluding amount included in net interest expense) (100) (54) 68 Net 292 530 (514) The actuarial valuation for the defined benefit pension plan was performed based on the measurement date as of December 31, 2016, 2017 and 2018, with reports dated February 7, 2017, February 8, 2018 and February 14, 2019 respectively, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary as of December 31, 2016, 2017 and 2018, are as follows: 2016 2017 2018 Discount rate 8.25 % 7.00 % 8.25 % Rate of compensation increases 8.00 % 8.00 % 8.00 % Indonesian mortality table b. Post-employment health care benefit cost 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 Yayasan Kesehatan Telkom (“Yakes”). The defined contribution post-employment health care benefit plan is provided to employees with permanent status hired on or after November 1, 1995 or employees with terms of service less than 20 years at the time of retirement. The Company did not make contributions to Yakes for the years ended December 31, 2017 and 2018. The following table presents the changes in projected post-employment health care benefit obligation, changes in post-employment health care benefit plan assets, funded status of the post-employment health care benefit plan and net amount recognised in the Company’s consolidated statement of financial position as of December 31, 2017 and 2018: 2017 2018 Changes in projected post-employment health care benefit obligation Projected post-employment health care benefit obligation at beginning of year 13,357 15,448 Charged to profit or loss: Interest costs 1,115 1,102 Actuarial losses (gain) recognised in OCI 1,460 (3,641) Post-employment health care benefits paid (484) (486) Projected post-employment health care benefit obligation at end of year 15,448 12,423 Changes in post-employment health care benefit plan assets Fair value of plan assets at beginning of year 11,765 13,029 Interest income 979 927 Return on plan assets (excluding amount included in net interest expense) 909 (1,082) Post-employment health care benefits paid (484) (486) Plan administration costs (140) (160) Fair value of pension plan assets at end of year 13,029 12,228 Projected for post-employment health care benefit obligation - net 2,419 195 As of December 31, 2017 and 2018, plan assets consist of: 2017 2018 Quoted in Quoted in active market Unquoted active market Unquoted Cash and cash equivalents 1,354 — 1,115 — Equity instruments: Manufacturing and consumer 835 — 799 — Finance industries 840 — 799 — Construction 254 — 190 — Infrastructure and telecommunication 350 — 332 — Wholesale 137 — 177 — Mining 65 — 77 — Other Industries: Services 38 — 60 — Agriculture 35 — 32 — Biotechnology and pharma industry 68 — 85 — Others 1 — 3 — Equity-based mutual funds 1,113 — 1,204 — Fixed income instruments: Fixed income mutual funds 7,642 — 7,020 — Unlisted shares: Private placement — 297 — 335 Total 12,732 297 11,893 335 Yakes plan assets also include Series B shares issued by the Company with fair value totalling Rp265 billion and Rp249 billion, representing 2.04% and 2.03% of total plan assets as of December 31, 2017 and 2018, 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 Rp1,748 billion and Rp(315) billion for the years ended December 31, 2017 and 2018, respectively. The movements of the projected post-employment health care benefit obligation for the years ended December 31, 2017 and 2018 are as follow: 2017 2018 Projected post-employment health care benefit obligation at beginning of year 1,592 2,419 Net periodic post-employment health care benefit costs 276 335 Actuarial losses (gain) recognised in OCI 1,460 (3,641) Return on plan assets (excluding amount included in net interest expense) (909) 1,082 Projected post-employment health care benefit obligation at end of year 2,419 195 The components of net periodic post-employment health care benefit cost for the years ended December 31, 2016, 2017, and 2018 are as follow: 2016 2017 2018 Service costs 9 — — Plan administration costs 144 140 160 Net interest costs 12 136 175 Periodic post-employment health care benefit cost 165 276 335 Amounts charged to subsidiaries under contractual agreements (2) — — Net periodic post-employment health care benefit cost less cost charged to subsidiaries 163 276 335 Amounts recognised in OCI are as follow: 2016 2017 2018 Actuarial losses (gain) recognised during the year due to: Experience adjustments 26 (1,198) (1,100) Changes in demographic assumptions 66 — — Changes in financial assumptions 1,736 2,658 (2,541) Return on plan assets (excluding amount included in net interest expense) (519) (909) 1,082 Net 1,309 551 (2,559) The actuarial valuation for the post-employment health care benefits plan was performed based on the measurement date as of December 31, 2016, 2017 and 2018, with reports dated February 22, 2017, February 27, 2018, and April 1, 2019, respectively, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary as of December 31, 2016, 2017 and 2018 are as follow: 2016 2017 2018 Discount rate 8.50 % 7.25 % 8.75 % Health care costs trend rate assumed for next year 7.00 % 7.00 % 7.00 % Ultimate health care costs trend rate 7.00 % 7.00 % 7.00 % Year that the rate reaches the ultimate trend rate Indonesian mortality table c. Other post-employment benefits cost 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”). The movements of the unfunded projected other post-employment benefit obligations for the years ended December 31, 2017 and 2018 are as follow: 2017 2018 Projected other post-employment benefit obligations at beginning of year 502 510 Charged to profit or loss: Service costs 6 6 Net interest costs 36 26 Actuarial losses (gain) recognised in OCI 40 (24) Benefits paid by employer (74) (99) Projected other post-employment benefits obligations at the end of year 510 419 The components of the projected other post-employment benefit cost for the years ended December 31, 2016, 2017 and 2018 are as follow: 2016 2017 2018 Service costs 7 6 6 Net interest costs 41 36 26 Total 48 42 32 Amounts recognised in OCI are as follow: 2016 2017 2018 Actuarial losses (gain) recognised during the year due to: Experience adjustments 2 10 40 Changes in demographic assumptions 0 — (34) Changes in financial assumptions 18 30 (30) Total 20 40 (24) The actuarial valuation for the other post-employment benefits plan was performed based on measurement date as of December 31, 2016, 2017 and 2018, with reports dated February 22, 2017, February 27, 2018 and April 1, 2019, respectively, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary as of December 31, 2016, 2017 and 2018, are as follow: 2016 2017 2018 Discount rate 7.75 % 5.75 % 8.00 % Indonesian mortality table d. Obligation under the Labor Law 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. Total obligation recognised as of December 31, 2017 and 2018 amounted to Rp427 billion and Rp507 billion, respectively. The related employee benefits cost charged to expense amounted to Rp82 billion, Rp62 billion and Rp113 billion for the years ended December 31, 2016, 2017 and 2018, respectively (Note 27). The actuarial losses recognised in OCI amounted to Rp33 billion, Rp72 billion and Rp(14) billion for the years ended December 31, 2016, 2017 and 2018, respectively. e. Maturity Profile of Defined Benefit Obligation (“DBO”) The timing of benefits payments and weighted average duration of DBO for 2018 are as follow: Expected Benefits Payment The Company Funded Post-employment Other post- Defined pension Additional pension health care employment Time Period benefit obligation benefit obligation Unfunded Telkomsel benefits benefits Within next 10 years 16,370 — 948 2,498 5,620 485 Within 10-20 years 20,349 — 160 7,880 6,913 91 Within 20-30 years 16,207 20 29 6,680 6,217 39 Within 30-40 years 9,400 38 9 1,580 3,193 3 Within 40-50 years 3,383 30 — — 661 — Within 50-60 years 644 50 — — 22 — Within 60-70 years 62 101 — — 0 — Within 70-80 years 2 — — — — — Weighted average duration of DBO 9.11 years 9.11 years 3.97 years 10.58 years 17.41 years 3.13 years f. Sensitivity Analysis 1% change in discount rate and rate of compensation would have effect on DBO, as follows: Discount Rate Rate of Compensation 1% Increase 1% Decrease 1% Increase 1% Decrease Sensitivity Increase (decrease) in amounts Increase (decrease) in amounts Funded: Defined pension benefit obligation (1,568) 1,832 275 (286) Additional pension benefit obligation (2) 1 — — Unfunded (41) 38 42 (45) Telkomsel (497) 562 294 (276) Post-employment health care benefits (1,428) 1,815 1,783 (1,508) Other post-employment benefits (12) 13 — — The sensitivity analysis has 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 DBO at the end of the year. In reality, the Plan is subject to multiple external experience items which may move the DBO in similar or opposite directions, and the Plan’s sensitivity to such changes can vary over time. There are no changes in the methods and assumptions used in preparing the sensitivity analysis from the previous period. |
LSA PROVISIONS
LSA PROVISIONS | 12 Months Ended |
Dec. 31, 2018 | |
LSA PROVISIONS | |
LSA PROVISIONS | 32. LSA PROVISIONS Telkomsel and Telkomsat provide certain cash awards or certain number of days leave benefits to their employees based on the employees’ length of service requirements, including LSA and LSL. LSA are either paid at the time the employees reach certain years of 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 reach 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 Rp758 billion and Rp852 billion as of December 31, 2017 and 2018, respectively. The related benefit costs charged to expense amounted to Rp237 billion, Rp255 billion and Rp161 billion for the years ended December 31, 2016, 2017 and 2018, respectively (Note 27). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 33. 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 Nature of relationships with related parties Nature of accounts/transactions The Government – Ministry of Finance Majority stockholder Internet and data service revenues, other telecommunication service revenues, operation and maintenance expense, finance income, finance costs and investment in financial instruments Government agencies Entities under common control Network service revenues, internet and data service revenues and other telecommunication revenues MoCI Entity under common control Concession fees, radio frequency usage charges, USO charges, telecommunication service revenues and operation and maintenance expenses Indosat Entity under common control Interconnection revenues, network service revenues, interconnection expenses, leased line expenses, operation and maintenance expenses PT Perusahaan Listrik Negara (Persero) (“PLN”) Entity under common control Electricity expenses, finance income, finance costs and investment in financial instrument PT Pertamina (Persero) (“Pertamina”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Pegadaian (Persero) (“Pegadaian”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Garuda Indonesia (Persero) Tbk (“Garuda”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Asuransi Jasa Indonesia (Persero) (“Jasindo”) Entity under common control Satellite insurance expenses and vehicle insurance expenses Perum Peruri (“Peruri”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Angkasa Pura (“Angkasa Pura”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Balai Pustaka (“Balai Pustaka”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Kereta Api Indonesia (“KAI”) Entity under common control Internet and data service revenues, other telecommunication service revenues INTI Entity under common control Purchase of property and equipment and construction service State-owned banks Entities under common control Finance income and finance costs BNI Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs Bank Mandiri Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs Details of the nature of relationships and accounts/transactions with significant related parties are as follows: Related parties Nature of relationships with related parties Nature of accounts/transactions BRI Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs BJB Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs PT Mandiri Manajemen Investasi Entity under common control Available-for-sale financial assets BTN Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs Bahana TCW Entity under common control Available-for-sale financial assets, bonds and notes PT Sarana Multi Infrastruktur (“SMI”) Entity under common control Finance costs Indonusa Associated company Network service revenues and data communication expenses Teltranet Associated company Network service revenue, leased line and CPE expenses and operation and maintenance expenses Tiphone Associated company Distribution of SIM cards and pulse reload voucher Koperasi Pegawai Telkom (“Kopegtel”) Other related entity Installation services, leases of buildings expenses, lease of vehicles expenses, purchases of vehicles, and purchases of property and equipment and construction service, maintenance and cleaning service expenses, and Revenue Sharing Agreement (“RSA”) revenues Yakes Other related entity Medical expenses, internet and data service revenues and e-health revenues PT Poin Multi Media Nusantara (“POIN”) Other related entity Cost of sales of handset PT Perdana Mulia Makmur (“PMM”) Other related entity Cost of sales of handset Koperasi Pegawai Telkomsel (“Kisel”) Other related entity Internet and data service revenues, other 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 PT Graha Informatika Nusantara (“Gratika”) Other related entity Network service revenues, operation and maintenance expenses, purchase of property and equipment and construction services and distribution of SIM card and pulse reload voucher PT Pembangunan Telekomunikasi Indonesia (“Bangtelindo”) Other related entity Purchase of property and equipment and construction services Directors Key management personnel Honorarium and facilities Commissioners Supervisory 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 2018, the Group recorded allowance for credit lossed of receivables from related parties of Rp486 billion. Impairment assessment is undertaken each financial year through examining the current status of existing receivables and historical collection experience. b. Transactions with related parties The following are significant transactions with related parties: 2016 2017 2018 % of total % of total % of total Amount revenues Amount revenues Amount revenues REVENUES Majority stockholder Ministry of Finance 207 0.18 280 0.22 258 0.20 Entities under common control Government agencies 2,279 1.96 2,568 2.00 3,720 2.84 Indosat 2,167 1.86 1,789 1.39 1,002 0.77 BRI 181 0.16 237 0.18 397 0.30 Pegadaian 93 0.08 115 0.09 228 0.17 BNI 136 0.12 105 0.08 188 0.14 Pertamina 64 0.06 94 0.07 183 0.14 BTN 107 0.09 129 0.10 179 0.14 Bank Mandiri 161 0.14 157 0.12 173 0.13 Peruri — — — — 120 0.09 Angkasa Pura — — — — 114 0.09 Garuda 75 0.06 55 0.04 105 0.08 KAI 68 0.06 18 0.01 83 0.06 Balai Pustaka — — — — 81 0.06 Others 893 0.78 720 0.57 696 0.53 Sub-total 6,224 5.37 5,987 4.65 7,269 5.54 Associated companies 198 0.17 178 0.15 55 0.04 Other related entities 253 0.22 315 0.25 73 0.06 Total 6,882 5.94 6,760 5.27 7,655 5.84 2016 2017 2018 % of total % of total % of total Amount expenses Amount expenses Amount expenses EXPENSES Majority stockholder Ministry of Finance — — 12 0.01 — — Entities under common control MoCI 5,911 7.84 6,533 7.77 8,109 8.68 PLN 1,037 1.38 2,269 2.70 2,596 2.78 Indosat 939 1.25 890 1.06 933 1.00 Jasindo 267 0.35 168 0.20 349 0.37 Others 128 0.16 114 0.14 511 0.55 Sub-total 8,282 10.98 9,974 11.87 12,498 13.38 Associated companies Indonusa 145 0.19 264 0.31 306 0.33 Teltranet 49 0.06 123 0.15 181 0.19 Others 38 0.05 34 0.04 11 0.01 Sub-total 232 0.30 421 0.50 498 0.53 Other related entities Kisel 771 1.02 813 0.97 916 0.98 POIN 1,459 1.94 405 0.48 850 0.91 PMM — — 404 0.48 850 0.91 Kopegtel 533 0.71 713 0.85 836 0.90 Yakes 192 0.25 139 0.17 128 0.14 Others 188 0.25 83 0.10 190 0.20 Sub-total 3,143 4.17 2,557 3.05 3,770 4.04 Total 11,657 15.45 12,964 15.43 16,766 17.95 2016 2017 2018 % of total % of total % of total Amount finance income Amount finance income Amount finance income FINANCE INCOME Majority stockholder Ministry of Finance 2 0.12 0 — — Entities under common control State-owned banks 895 52.16 863 60.18 596 58.78 Government agencies 34 1.98 34 2.37 12 1.18 Others 5 0.29 35 2.44 6 0.59 Total 936 54.55 932 64.99 614 60.55 2016 2017 2018 % of total % of total % of total Amount finance cost Amount finance cost Amount finance cost FINANCE COSTS Majority stockholder Ministry of Finance 64 2.28 54 1.95 41 1.16 Entities under common control State-owned banks 1,228 43.70 820 29.61 1,140 32.36 SMI — — 94 3.39 110 3.12 Total 1,292 45.98 968 34.95 1,291 36.64 2016 2017 2018 % of total % of total % of total Amount revenues Amount revenue Amount revenues DISTRIBUTION OF SIM CARD AND PULSE RELOAD VOUCHER Other related entities Tiphone 3,441 2.96 3,888 3.03 4,390 3.36 Kisel 4,600 3.95 4,181 3.26 4,221 3.23 Gratika 408 0.35 408 0.32 474 0.36 Total 8,449 7.26 8,477 6.61 9,085 6.95 2017 2018 % of total % of total Amount property and Amount property and PURCHASE OF PROPERTY AND EQUIPMENTS Entities under common control INTI 203 0.61 137 0.41 Others 98 0.29 70 0.21 Sub-total 301 0.90 207 0.62 Other related entities Kopegtel 130 0.39 144 0.43 Bangtelindo 64 0.19 135 0.40 Others 188 0.57 193 0.57 Sub-total 382 1.15 472 1.40 Total 683 2.05 679 2.02 Presented below are balances of accounts with related parties: 2017 2018 % of total % of total Amount assets Amount assets a. Cash and cash equivalents (Note 4) 19,236 9.71 14,544 7.06 b. Other current financial assets (Note 5) 1,170 0.59 471 0.23 c. Trade receivables - net (Note 6) 1,864 0.94 2,014 0.98 d. Other current assets Entities under common control MoCI 3,485 1.76 3,478 1.69 Others 60 0.03 85 0.04 Sub-total 3,545 1.79 3,563 1.73 Other related entities 68 0.03 78 0.04 Total 3,613 1.82 3,641 1.77 e. Other non-current assets Entities under common control MoCI 2,019 1.02 1,743 0.85 Others 33 0.02 28 0.01 Sub-total 2,052 1.04 1,771 0.86 Other related entities 25 0.01 18 0.01 Total 2,077 1.05 1,789 0.87 2017 2018 % of total % of total Amount liabilities Amount liabilities f. Trade payables (Note 15) Majority stockholder Ministry of Finance 29 0.03 2 0.00 Entities under common control MoCI 1,561 1.81 1,477 1.66 Indosat 225 0.26 122 0.14 Others 108 0.12 313 0.35 Sub-total 1,894 2.19 1,912 2.15 Other related entities Kopegtel 206 0.24 279 0.31 Others 284 0.32 259 0.29 Sub-total 490 0.56 538 0.60 Associated companies 47 0.05 37 0.04 Total 2,460 2.83 2,489 2.79 2017 2018 % of total % of total Amount liabilities Amount liabilities g. Accrued expenses Majority stockholder Ministry of Finance 9 0.01 7 0.01 Entities under common control State-owned banks 22 0.03 61 0.07 Others 129 0.15 86 0.10 Sub-total 151 0.18 147 0.17 Other related entities Kisel 235 0.27 183 0.21 Others — — 13 0.01 Sub-total 235 0.27 196 0.22 Total 395 0.46 350 0.40 h. Advances from customers Majority stockholder Ministry of Finance 19 0.02 19 0.02 Entity under common control PLN 11 0.01 12 0.01 Total 30 0.03 31 0.03 i. Short-term bank loans (Note 18) 1,297 1.50 956 1.08 j. Two-step loans (Note 19a) 1,098 1.27 949 1.07 k. Long-term bank loans (Note 19c) 7,895 9.14 12,620 14.20 l. Other borrowings (Note 19d) 1,295 1.50 2,244 2.52 c. Significant agreements with related parties i. The Government The Company obtained two-step loans from the Government (Note 19a). 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 Global System for Mobile ("GSM”) 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 to 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 Regulation 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 its subsidiaries, namely PT Indosat Mega Media and Lintasarta. The leased lines can be used by these companies for telephone, telegraph, data, telex, facsimile or other telecommunication services. iii. Others 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. Remuneration of key management and supervisory personnel Key management personnel consists of the Directors of the Company and supervisory personnel consists of Board of Commissioners. The Company provides remuneration in the form of salaries/honorarium and facilities to support the governance and oversight duties of the Board of Commissioners and the leadership and management duties of the Directors. The total of such remuneration is as follows: 2016 2017 2018 % of total % of total % of total Amount expenses Amount expenses Amount expenses Directors 427 0.57 % 175 0.21 % 360 0.39 % Board of Commissioners 121 0.16 % 65 0.08 % 166 0.18 % The amounts disclosed in the table are the amounts recognised as an expense during the reporting periods. |
OPERATING SEGMENT
OPERATING SEGMENT | 12 Months Ended |
Dec. 31, 2018 | |
OPERATING SEGMENT | |
OPERATING SEGMENT | 34. OPERATING SEGMENT In 2017, management rearranged the Group's business portfolios from a customer-centric approach to a Customer Facing Unit ("CFU") approach that allow the Group to focus on more specific customer markets. This was followed by a change in the Group's organizational structure to accommodate decision making and assessing performance based on the CFU approach. The change in the way of managing the Company's business portfolios and the change in the Company's organizational structure led the Board of Directors, as the Company's CODM, to change the presentation of the Group's segment information previously presented in the consolidated financial statements for the years ended December 31, 2016. Accordingly, the segment financial information in the consolidated financial statements for the years ended December 31, 2016 were restated to conform with the presentation of segment information in the consolidated financial statements for the years ended December 31, 2017. The Group has four primary reportable segments, namely mobile, consumer, enterprise, and WIB. The mobile segment provides mobile voice, SMS, value added services and mobile broadband. The consumer segment provides fixed wireline telecommunications services, pay TV, data, internet and other telecommunication services to home customers. The enterprise segment provides end-to-end solution to corporate and institutions. The WIB segment provides interconnection services, leased lines, satellite, VSAT, broadband access, information technology services, data and internet services to Other Licensed Operator companies and institutions. Other segment represents Digital Service Operating Segment that does not meet the disclosure requirements for a reportable segment. No Operating Segments have been aggregated to form the reportable segments. 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 on the basis of IFAS which differ from IFRS primarily in the accounting for land rights, revenues and expenses recognition, and financial instruments. However, the financing activities and income taxes are managed on a group basis and not separately monitored and allocated to operating segments. Segment revenues and expenses include transactions between operating segments and are accounted at prices that management believes represent market prices. 2016 Total Adjustments & Total Mobile Consumer Enterprise WIB Others Segment eliminations consolidated Segment results Revenues External revenues 83,998 10,410 15,816 5,866 19 116,109 224 116,333 Inter-segment revenues 2,724 1,877 12,877 14,451 209 32,138 (32,138) — Total segment revenues 86,722 12,287 28,693 20,317 228 148,247 (31,914) 116,333 Expenses External expenses (37,814) (11,024) (17,813) (10,451) (417) (77,519) 358 (77,161) Inter-segment expenses (12,547) (2,793) (9,647) (4,805) (12) (29,804) 29,804 — Total segment expenses (50,361) (13,817) (27,460) (15,256) (429) (107,323) 30,162 (77,161) Segment results 36,361 (1,530) 1,233 5,061 (201) 40,924 (1,752) 39,172 Other information Capital expenditures (12,568) (7,085) (3,036) (5,729) (1) (28,419) (780) (29,199) Depreciation and amortization (12,808) (2,881) (1,386) (1,715) (19) (18,809) 253 (18,556) Provision recognised in current period (221) (392) 119 (238) (1) (733) (10) (743) 2017 Total Adjustments & Total Mobile Consumer Enterprise WIB Others Segment eliminations consolidated Segment results Revenues External revenues 90,073 11,105 19,130 7,439 126 127,873 383 128,256 Inter-segment revenues 3,086 287 16,801 15,305 602 36,081 (36,081) — Total segment revenues 93,159 11,392 35,931 22,744 728 163,954 (35,698) 128,256 Expenses External expenses (39,452) (10,360) (20,627) (12,333) (979) (83,751) (603) (84,354) Inter-segment expenses (14,382) (1,563) (15,053) (5,611) (70) (36,679) 36,679 — Total segment expenses (53,834) (11,923) (35,680) (17,944) (1,049) (120,430) 36,076 (84,354) Segment results 39,325 (531) 251 4,800 (321) 43,524 378 43,902 Other information Capital expenditures (15,134) (6,544) (3,637) (7,120) (11) (32,446) (708) (33,154) Depreciation and amortization (13,560) (2,839) (2,136) (2,382) (22) (20,939) 462 (20,477) Provision recognised in current period (291) (385) (668) (127) (2) (1,473) (21) (1,494) 2018 Total Adjustments & Total Mobile Consumer Enterprise WIB Others Segment eliminations consolidated Segment results Revenues External revenues 85,338 13,891 21,054 10,084 130 130,497 291 130,788 Inter-segment revenues 3,880 2,290 17,995 16,678 886 41,729 (41,729) — Total segment revenues 89,218 16,181 39,049 26,762 1,016 172,226 (41,438) 130,788 Expenses External expenses (40,041) (11,739) (21,717) (14,624) (1,042) (89,163) (3,092) (92,255) Inter-segment expenses (15,408) (3,792) (16,116) (6,010) (31) (41,357) 41,357 — Total segment expenses (55,449) (15,531) (37,833) (20,634) (1,073) (130,520) 38,265 (92,255) Segment results 33,769 650 1,216 6,128 (57) 41,706 (3,173) 38,533 Other information Capital expenditures (14,373) (6,958) (5,325) (6,321) (18) (32,995) (625) (33,620) Depreciation and amortization (13,095) (3,060) (2,128) (3,146) (21) (21,450) 8 (21,442) Provision recognised in current period (438) (438) (764) (71) (5) (1,716) (363) (2,079) Adjustments and eliminations: 2016 2017 2018 Segment results 40,924 43,524 41,706 Operating loss of operating business (339) (786) (798) Other eliminations and adjustments (1,390) 1,195 (2,063) IFRS reconciliation (23) (31) (312) Consolidated operating income 39,172 43,902 38,533 Revenues information based on the location of the customers: 2016 2017 2018 Indonesia Foreign countries Total 2016 2017 2018 Non-current operating assets Indonesia 114,948 130,169 144,296 Foreign countries 2,371 3,233 3,648 Total 117,319 133,402 147,944 Non-current operating assets for this purpose consist of property and equipment and intangible assets. |
SIGNIFICANT COMMITMENTS AND AGR
SIGNIFICANT COMMITMENTS AND AGREEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT COMMITMENTS AND AGREEMENTS | |
SIGNIFICANT COMMITMENTS AND AGREEMENTS | 35. SIGNIFICANT COMMITMENTS AND AGREEMENTS a. Capital expenditures As of December 31, 2018, 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: Amounts in foreign currencies Equivalent in Currencies (in millions) Rupiah Rupiah — 7,988 U.S. dollar 94 1,349 Euro 1.23 20 HKD 0.79 1 Total 9,358 The above balance includes the following significant agreements: (i) The Company Contracting parties Initial date of agreement Significant provisions of the agreement The Company, TII and NEC Corporation May 12, 2016 Procurement and installation agreement of Sistem Komunikasi Kabel Laut (“SKKL”) Indonesia Global Gateway The Company and Consortium Bisnis Submarine Cable November 10, 2017 Procurement and installation agreement of SKKL Sabang-Lhoksemawe-Medan The Company and PT Sisindokom Lintas Buana November 15, 2017 Procurement and installation for Provider Edge Virtual Private Network (“PE-VPN”) CISCO expansion The Company and PT Sisindokom Lintas Buana April 26, 2018 Procurement and installation for PE-VPN CISCO expansion The Company and PT ZTE Indonesia May 31, 2018 Procurement and installation of Optical Line Terminal and Optical Network Terminal (“ONT”) Platform ZTE The Company and PT ZTE Indonesia September 13, 2018 Procurement agreement for ONT Platform ZTE The Company and PT ZTE Indonesia October 30, 2018 Procurement agreement for Set Top Box Platform ZTE phase-2 The Company and PT Huawei Tech Investment November 23, 2018 Procurement and installation for Dual Wavelength Division Multiplexing (“DWDM”) Platform Huawei The Company and PT Lintas Teknologi Indonesia December 13, 2018 Procurement and installation for DWDM Platform Nokia NARU 2018 The Company and NEC Indonesia December 13, 2018 Procurement and installation agreement of Inside Plant SKKL Platform NEC expansion and reengineering transport The Company and PT Datacomm Diangraha December 14, 2018 Procurement and installation for Metro Ethernet Platform Nokia-ALU expansion The Company and PT Huawei Tech Investment December 17, 2018 Procurement and installation agreement of Metro Ethernet, Broadband Remote Access Server, Policy and Charging Enforcement Function and Provider Edge Transit Platform Huawei The Company and PT Master System Infotama December 31, 2018 Procurement and installation for IP Backbone Platform CISCO expansion The Company and PT Lancs Arche Consumma December 31, 2018 Procurement and installation for DWDM Platform Coriant NARU 2018 (ii) Telkomsel Contracting parties Initial date of agreement Significant provisions of the agreement Telkomsel, PT Nokia Siemens Network, Nokia Siemens Network Oy and Nokia Siemens Networks GmbH & Co.KG April 17, 2008 The combined 2G and 3G CS Core Network Rollout Agreement (“ROA”) Telkomsel, PT Ericsson Indonesia and PT Ericsson AB April 17, 2008 Technical Service Agreement (“TSA”) for combined 2G and 3G CS Core Network Telkomsel, PT Datacraft Indonesia, PT Dimension Data Indonesia and PT Huawei Tech Investment February 3, 2010 Next Generation Convergence Core Transport Rollout and Technical Support agreement 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 Agreements 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 Tech Investment March 25, 2013 Technical Support agreement for the procurement of Gateway GPRS Support Node (“GGSN”) Service Complex Telkomsel, Wipro Limited, and PT WT Indonesia April 23, 2013 Development and procurement of Operational and Strategic Decision Support System Solution Agreement Telkomsel, PT Huawei Tech Investment and PT Ericsson Indonesia October 22, 2013 Procurement of GGSN Service Complex TSA and ROA agreement Telkomsel, PT Ericsson Indonesia, PT Nokia Solutions and Network Indonesia, Nokia Solutions and Network Oy, PT Huawei Tech Investment and PT ZTE Indonesia February 1, 2018 Ultimate Radio Network Infrastructure ROA and TSA agreement b. Borrowings and other credit facilities (i) As of December 31, 2018, 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 Currency Facility utilized BRI 500 March 14, 2020 Rp 280 BNI 850 March 31, 2019 Rp 261 Bank Mandiri 500 December 23, 2019 Rp 361 Total 1,850 902 (ii) Telkomsel has US$3 million bond, bank guarantee and standby letter of credit facility with SCB, Jakarta. The facilities will expire on July 31, 2019. Telkomsel has a Rp1,000 billion bank guarantee facility with BRI. The facility will expire on September 25, 2022. Under this facility, as of December 31, 2018, Telkomsel has issued a bank guarantee amounting to Rp499 billion as payment commitment guarantee for annual right of usage fee valid until March 31, 2019 and Rp20 billion as frequency performance bond valid until May 31, 2019 (Note 35c.i). Telkomsel has a Rp150 billion bank guarantee facility with BCA. The facility will expire on April 15, 2019. Telkomsel also has a Rp2,100 billion bank guarantee facility with BNI. The facility will expire on December 11, 2019. Telkomsel used this facility to replace the time deposits which were pledged as collateral for bank guarantees required for the USO program amounting to Rp52.2 billion (Note 35c.iii) and for surety bond of 2.3 GHz radio frequency amounting to Rp1,030 billion (Note 35c.i) (iii) TII has a US$15 million equivalent to Rp202 billion bank guarantee from Bank Mandiri and has been renewed in accordance with the addendum V (five) on December 18, 2017 with a maximum credit limit of US$10 million equivalent to Rp135 billion. The facility will expire on December 18, 2018. As of December 31, 2018, TII has not used the facility. (iv) As of December 31, 2018, Sigma has a Rp354 billion bank guarantee from BNI and HSBC. The used facility on December 31, 2018 amounting to Rp156 billion. c. Others (i) Radio Frequency Usage Based on Decree No. 8 dated November 2, 2015 of the Government of the Republic of Indonesia which replaced Decree No. 76 dated December 15, 2010, Telkomsel is required to pay the annual frequency usage fees for the 800 MHz, 900 MHz and 1800 MHz bandwidths using the formula set out in the decree. As an implementation of the above decree, the Company and Telkomsel paid annual frequency usage fees since 2010. Based on Decision letter No. 1987 Year 2017 dated November 15, 2017, which amended Decree No. 42 Year 2014 dated January 29, 2014, whereby the MoCI granted Telkomsel the rights to provide: 1. Mobile telecommunication services with radio frequency bandwidth in the 800 MHz, 900 MHz, 1800 MHz, 2.1 GHz and 2.3 GHz; and 2. Basic telecommunication services. With reference to Decision Letters No. 268/KEP/M.KOMINFO/9/2009, No. 191 Year 2013, No. 509 Year 2016 and No. 1896 year 2017 of the MoCI, Telkomsel is required, among other things, to: 1. Pay an annual right of usage Biaya Hak Penyelenggara (“BHP”) over the license term (10 years) as set forth in the decision letters. The BHP is payable upon receipt of Surat Pemberitahuan Pembayaran (notification letter) from the DGPI. The BHP fee is payable annually up to the expiry period of the license. 2. Issue a performance bond each year amounting to Rp20 billion for spectrum 2.1 GHz and a surety bond each year amounting Rp1.03 trillion for spectrum 2.3 GHz (Note 35b.ii). (ii) 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 2019 and 2028. Periods may be extended based on the agreement by both parties. Minimum lease payments charged to profit or loss in 2018 amounted to Rp4,038 billion. Future minimum lease payments/receivables under non-cancelable operating lease agreements as of December 31, 2018 are as follows : Less than More than Total 1 year 1‑5 years 5 years As lessee 23,832 6,271 13,030 4,531 As lessor 4,105 1,084 2,464 557 (iii) USO The MoCI issued Regulation No. 17 year 2016 dated September 26, 2016 which replaced Regulation No. 45 year 2012 and other previous regulations regarding policies underlying the USO program. The regulation requires telecommunications operators in Indonesia to contribute 1.25% of gross revenues (with due consideration for bad debts and/or interconnection charges and/or connection charges and/or the exclusion of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged) for USO development. Subsequently, Regulation No. 17 year 2016 was replaced by Regulation No. 19 year 2016 which was effective from November 8, 2016. The latest Regulation stipulates, among other things, the USO charged was effective for fiscal year 2016 and thereafter. Based on MoCI Regulation No. 25 year 2015 dated June 30, 2015, 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 Penyedia dan Pengelola Pembiayaan Telekomunikasi dan Informatika (“BPPPTI”). BPPPTI replaced Balai Telekomunikasi dan Informatika Pedesaan (“BTIP”) based on Regulation No. 18/PER/M.KOMINFO/11/2010 dated November 19, 2010 of MoCI. Based on Regulation No. 3 year 2018 of MoCI dated May 23, 2018, BPPPTI has been renamed as Badan Aksesibilitas Telekomunikasi dan Informasi (“BAKTI”). Subsequently, MoCI Regulation No. 25 year 2015 was replaced by MoCI Regulation No. 10 year 2018. 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 packages 1, 2 and 3 with a total price of Rp261 billion. In 2015, the Program was ceased. In January 2016, Telkomsel filed an arbitration claim to BANI for the settlement of the outstanding receivables of USO Programs. On June 22, 2017, Telkomsel received a decision letter from BANI No.792/1/ARB-BANI/2016 requesting BPPPTI to pay compensation to Telkomsel amounting to Rp217 billion, and as of the date of the issuance of these consolidated financial statements, Telkomsel has received the payment from BPPPTI amounting to Rp83 billion (before tax). As of December 31, 2017 and 2018, 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 Rp115 billion. |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL RISK MANAGEMENT | |
FINANCIAL RISK MANAGEMENT | 36. FINANCIAL RISK MANAGEMENT 1. Financial assets and financial liabilities a. Classification i. Financial assets 2017 2018 Loans and receivables Cash and cash equivalents 25,145 — Trade and other receivables, net 9,564 — Other current financial assets 1,005 — Other non-current assets 183 — Available-for-sale financial assets Available-for-sale investments 1,541 — Amortized cost Cash and cash equivalents, net — 17,435 Trade and other receivables, net — 9,928 Contract assets, net — 1,560 Other current financial assets, net — 844 Other non-current assets, net — 443 FVTPL Subsidiaries' investments — 709 Mutual funds — 470 Convertible bonds — 213 Total financial assets 37,438 31,602 ii. Financial liabilities 2017 2018 Financial liabilities measured at amortized cost Trade and other payables 15,791 15,214 Accrued expenses 12,630 12,769 Interest-bearing loans and other borrowings Short-term bank loans 2,289 4,043 Two-step loans 1,098 949 Bonds and notes 8,982 10,481 Long-term bank loans 18,004 23,220 Obligations under finance leases 3,804 3,145 Other borrowings 1,295 2,244 Other liabilities 296 261 Total financial liabilities 64,189 72,326 b. Fair values Fair value measurement at reporting date using Quoted prices in active markets for Significant identical assets or Significant other unobservable liabilities observable inputs inputs 2017 Carrying value Fair value (level 1) (level 2) (level 3) Financial assets measured at fair value Available-for-sale investments 1,541 1,541 1,151 17 373 Financial liabilities for which fair values are disclosed Interest-bearing loans and other borrowings: Two-step loans 1,098 1,111 — — 1,111 Bonds and notes 8,982 10,051 10,051 — — Long-term bank loans 18,004 18,126 — — 18,126 Obligations under finance leases 3,804 3,804 — — 3,804 Other borrowings 1,295 1,365 — — 1,365 Other liabilities 296 296 — — 296 Total 35,020 36,294 11,202 17 25,075 Fair value measurement at reporting date using Quoted prices in active markets for Significant identical assets or Significant other unobservable liabilities observable inputs inputs 2018 Carrying value Fair value (level 1) (level 2) (level 3) Financial assets measured at fair value Mutual funds 470 470 470 — — Convertible bonds 213 213 — — 213 Subsidiaries' investments 709 709 — — 709 Financial liabilities for which fair values are disclosed Interest-bearing loans and other borrowings: Two-step loans 949 898 — — 898 Bonds and notes 10,481 10,894 9,380 — 1,514 Long-term bank loans 23,220 22,796 — — 22,796 Obligations under finance leases 3,145 3,145 — — 3,145 Other borrowings 2,244 2,154 — — 2,154 Other liabilities 261 261 — — 261 Total 41,692 41,540 9,850 — 31,690 Gain on fair value recognised in consolidated statements of profit or loss for 2018 amounting to Rp52 billion. There is no movement between fair value hierarchy during 2018. 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 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. The fair values of long-term financial assets and financial liabilities (other non-current assets (long-term trade receivables and restricted cash) and liabilities) approximate their carrying amounts as the impact of discounting is not significant. 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) FVTPL, previously as available-for-sale investments, primarily consist of stocks, mutual funds, corporate and government bonds and convertible bonds. Stocks and 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. The fair value of convertible bonds are determined using valuation technique. Corporate and government bonds are stated at fair value by reference to prices of similar securities at the reporting date; (ii) 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 price. 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, market price 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 on 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. dollar and Japanese yen. The Group’s exposures to other foreign exchange rates are not material. Increasing risks of foreign currency exchange rates on the obligations of the Group are expected to be partly 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 present the Group's financial assets and financial liabilities exposure to foreign currency risk: 2017 2018 U.S. dollar Japanese yen U.S. dollar Japanese yen (in millions) (in millions) (in millions) (in millions) Financial assets 261 7 473 8 Financial liabilities (304) (5,413) (391) (4,656) Net exposure (43) (5,406) 82 (4,648) Sensitivity analysis A strengthening of the U.S. dollar and Japanese yen, as indicated below, against the rupiah at December 31, 2018 would have decreased equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant. Equity/profit (loss) December 31, 2018 U.S. dollar (1% strengthening) 12 Japanese yen (5% strengthening) (30) A weakening of the U.S. dollar and Japanese yen against the rupiah at December 31, 2018 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 financial assets measured at FVTPL carried at fair value. Gains arising from changes in the fair value of financial assets measured at FVTPL are recognised in the consolidated statements of profit or loss and other comprehensive income. The performance of the Group’s financial assets measured at FVTPL is monitored periodically, together with a regular assessment of their relevance to the Group’s long-term strategic plans. As of December 31, 2018, management considered the price risk for the Group’s financial assets measured at FVTPL 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 18 and 19). To measure market risk pertaining to fluctuations in interest rates, the Group primarily uses interest margin and maturity profile of the financial assets and liabilities based on changing schedule of the interest rate. At reporting date, the interest rate profile of the Group’s interest-bearing borrowings was as follows: 2017 2018 Fixed rate borrowings (14,281) (21,260) Variable rate borrowings (21,191) (22,822) Sensitivity analysis for variable rate borrowings As of December 31, 2018, a decrease (increase) by 25 basis points in interest rates of variable rate borrowings would have increased (decreased) equity and profit or loss by Rp57 billion, respectively. The analysis assumes that all other variables, in particular foreign currency rates, remain constant. d. Credit risk The following table presents the maximum exposure to credit risk of the Group’s financial assets: 2017 2018 Cash and cash equivalents 25,145 17,435 Trade and other receivables, net 9,564 9,928 Contract Asset — 1,560 Other current financial assets 2,173 1,314 Other non-current assets 183 443 Total 37,065 30,680 The Group is exposed to credit risk primarily from cash and cash equivalents and trade and other receivables. The credit risk is controlled by continuous monitoring of outstanding balance and collection. Credit risk from balances with banks and financial institutions is managed by the Group’s Corporate Finance Unit 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. Therefore, it is intended to minimize financial loss through banks and financial institutions’ potential failure to make payments. The customer credit risk is managed by continuous monitoring of outstanding balances and collection. Trade and other receivables do not have any major concentration of risk whereas no customer receivable balance exceeds 5.25% of trade receivables as of December 31, 2018. Management is confident in its ability to continue to control and sustain minimal exposure to the customer credit risk given that the Group has recognised sufficient provision for impairment of receivables to cover incurred loss arising from uncollectible receivables based on existing historical data on credit losses. e. Liquidity risk Liquidity risk arises in situations where the Group has difficulties in fulfilling financial liabilities when they become due. 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 based on contractual undiscounted payments: Carrying Contractual 2022 and amount cash flows 2018 2019 2020 2021 thereafter 2017 Trade and other payables 15,791 (15,791) (15,791) — — — — Accrued expenses 12,630 (12,630) (12,630) — — — — Interest bearing loans and other borrowings: Bank loans 20,293 (24,365) (7,721) (5,056) (3,979) (2,641) (4,968) Bonds and notes 8,982 (18,278) (929) (929) (2,873) (726) (12,821) Obligations under finance leases 3,804 (4,685) (1,083) (969) (866) (778) (989) Other borrowings 1,295 (1,759) (220) (303) (285) (266) (685) Two-step loans 1,098 (1,247) (251) (223) (215) (190) (368) Other liabilities 296 (355) (17) (34) (34) (135) (135) Total 64,189 (79,110) (38,642) (7,514) (8,252) (4,736) (19,966) Carrying Contractual 2023 and amount cash flows 2019 2020 2021 2022 thereafter 2018 Trade and other payables 15,214 (15,214) (15,214) — — — — Accrued expenses 12,769 (12,769) (12,769) — — — — Interest bearing loans and other borrowings: Two-step loans 949 (1,075) (242) (232) (205) (159) (237) Bonds and notes 10,481 (19,050) (1,562) (3,436) (1,231) (2,817) (10,004) Bank loans 27,263 (33,376) (10,441) (9,165) (3,991) (3,220) (6,559) Other borrowings 2,244 (2,905) (490) (570) (533) (495) (817) Obligations under finance leases 3,145 (3,764) (1,049) (945) (781) (605) (384) Other liabilities 261 (306) (16) (36) (36) (109) (109) Total 72,326 (88,459) (41,783) (14,384) (6,777) (7,405) (18,110) The difference between the carrying amount and the contractual cash flows is interest value. The interest values of variable-rate borrowings are determined based on the interest rates effective as of reporting dates. The changes in liabilities arising from financing activities is as follows: Non-cash changes Foreign December 31, Net exchange New Other December 31, 2017 cash flows Acquisition movement leases Changes 2018 Short-term bank loans 2,289 1,759 — — — (5) 4,043 Two step loans 1,098 (214) — 65 — — 949 Bonds and notes 8,982 1,498 — — — 1 10,481 Long-term bank loans 18,004 5,088 58 86 — (16) 23,220 Other borrowings 1,295 947 — — — 2 2,244 Obligations under finance leases 3,804 (827) — — 168 — 3,145 Total liabilities from financing activities 35,472 8,251 58 151 168 (18) 44,082 |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
CAPITAL MANAGEMENT | |
CAPITAL MANAGEMENT | 37. CAPITAL MANAGEMENT The capital structure of the Group is as follows: 2017 2018 Amount Portion Amount Portion Short-term debts 2,289 1.79 % 4,043 2.83 % Long-term debts 33,183 25.94 % 40,039 28.04 % Total debts 35,472 27.73 % 44,082 30.87 % Equity attributable to owners of the parent company 92,467 72.27 % 98,739 69.13 % Total 127,939 100.00 % 142,821 100.00 % 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, 2017 and 2018 is as follows: 2017 2018 Total interest-bearing debts 35,472 44,082 Less: cash and cash equivalents (25,145) (17,435) Net debts 10,327 26,647 Total equity attributable to owners of the parent company 92,467 98,739 Net debt-to-equity ratio 11.17 % 26.99 % As stated in Note 19, the Group is required to maintain a certain debt-to-equity ratio and debt service coverage ratio by the lenders. For the years ended December 31, 2017 and 2018, the Group has complied with the externally imposed capital requirements. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
SUPPLEMENTAL CASH FLOW INFORMATION | 38. SUPPLEMENTAL CASH FLOW INFORMATION The non-cash investing activities for the years ended December 31, 2016, 2017 and 2018 are as follows: 2016 2017 2018 Acquisitions of property and equipment: Credited to trade payables 6,199 5,525 4,275 Advance paid — — 2,837 Non-monetary exchange 636 816 — Interest capitalization 188 328 270 Credited to obligations under finance leases 368 518 201 Acquisitions of intangible assets: Credited to trade payables 41 846 235 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 39. SUBSEQUENT EVENTS 1. 2. 3. PST is a company engaged in managing tower rental. This new investment is expected to strengthen the Company's business portfolio. The Total Assets Cash and cash equivalents 5 Trade receivables 121 Property and equipment (Note 9) 1,107 Other assets 113 Liabilities Current liabilities (129) Non-current liabilities (378) Other liabilities (104) Fair value of identifiable net assets acquired 735 Fair value of non-controlling interest (37) Provisional goodwill 415 Fair value consideration transferred 1,113 As of the date of approval and authorization for the issuance of these consolidated financial statement, purchase price allocation calculation is still in process. 4. On March 11, 2019, Tax Authorities issued Decision Letter on Company’s objection, wherein the Tax Authorities has granted all the Company’s objection and addition the overpayment amount for the tax period January to April 2016. 5. |
NEW ACCOUNTING STANDARDS AND IN
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED | 12 Months Ended |
Dec. 31, 2018 | |
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED | |
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED | 40. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED Effective for annual periods beginning on or after January 1, 2019 IFRS 16, Leases IFRS 16 sets out a comprehensive model for identification of lease agreements and its treatment in the financial statements of both lessees and lessors. IFRS 16 introduces a control model for the identification of leases, distinguishing between leases and service contracts on the basis of whether there is an identified asset controlled by the customer. IFRS 16 supersedes a number of existing standards and interpretations, including IAS 17 - Leases, IFRIC 4 - Determining whether an Arrangement contains a Lease, SIC 15 - Operating Leases - Incentives, and SIC 27 - Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The Group elected to apply the standard by using the modified retrospective approach. Therefore, the cumulative effect of adopting IFRS 16 will be recognised as an adjustment to the opening balance of retained earnings at January 1, 2019, with no restatement of comparative information. Under IAS 17 Lease, Lessees recognised a periodic lease expense over the lease term for operating leases, while adoption of IFRS 16 resulted in the Group’s future minimum lease payments under non-cancellable operating leases to be recognised as lease liabilities with corresponding Right-of-Use (“RoU”) assets. The amounts are adjusted for the effects of discounting and the practical expedients available and selected by the Group. The Group elected the package of practical expedients permitted under the transition guidance within The Group as Lessee IFRS 16 establishes a single recognition model for all leases with terms longer than 12 months to record RoU assets and corresponding lease liabilities on the consolidated statement of financial position. Besides the carrying forward of the historical lease classification, the Group elected the package of practical expedients permitted under the transition guidance within IFRS 16 which allow the Group to apply single discount rate to a leases portfolio with reasonably similar characteristic such as similar assets in similar economic environment with the same end date. The Group also elected not to separate the lease components from non-lease components and included the initial direct costs in the measurement of the RoU assets, consequently the Group accounted for the whole contract as a lease. In addition, the election of the hindsight practical expedient will make the Group initial application of IFRS 16 to some extent more simple in determining the lease term, especially if the contract contains extension or termination options. Further, as permitted by the standard, the Group rely on the previous onerous lease provision as an alternative to perform an impairment review of each of its RoU assets on the transition date. The Group also elected the practical expedient to recognise RoU assets or lease liabilities for leases which the lease term ends within 12 months after January 1, 2019. The Group will recognise those lease payments on a straight-line basis over the lease term in the consolidated statement of profit or loss and other comprehensive income. The Group as Lessor The accounting for lessors under IFRS 16 is similar with the previous lease accounting standard, IAS 17 Leases. It requires the lessors to classify the lease as either operating lease or finance lease. The leases will be classified as financing if it transfers substantially the risks and rewards incidental to ownership of the underlying asset, otherwise it will be classified as an operating lease. The Group expect that the effect of the adoption will be material to the consolidated statement of financial position. The Group do not expect that the impact of the adoption will be material to the consolidated statement of profit of loss and other comprehensive income. The Group currently believe the most significant changes pertaining to the recognition of RoU assets and lease liabilities on the Group consolidated statement of financial position for operating assets such as transmission installation and equipment, land rights, buildings, data processing equipment and other assets as determined. The Group do not expect any significant changes in the Group leasing activities between now and the time of adoption. The Group continue to finalize the assessment of all of the potential impacts that the adoption of IFRS 16 will have on the Group consolidated financial statements, including evaluation of the existing lease portfolios, review of contractual arrangements for lease contracts, embedded leases, and collation all of the necessary information required to properly account for the leases under IFRS 16, and its disclosure. Additionally, the Group is continuing to identify necessary changes to the business process, system, and internal controls to prepare the adoption and meet the reporting standard. The aforementioned activities are monitored by a dedicated project team. IFRIC 23, Uncertainty over Income Tax Treatments IFRIC 23 clarifies how to apply the recognition and measurement requirements in IAS 12 Income Taxes when there is uncertainty over income tax treatments. When there is uncertainty over income tax treatments, IFRIC 23 addresses: - whether an entity considers uncertain tax treatments separately; - the assumptions an entity makes about the examination of tax treatments by taxation authorities; - how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates; and - how an entity considers changes in facts and circumstances. The Group is currently assessing on how the recognition and measurement of ongoing tax assessment would be affected by this IFRIC 23. Amendments to IFRS 3, Business Combination and IFRS 11, Joint Arrangements, previously Held Interest in a Joint Operation IFRS 3 is amended to clarify that when an entity obtains control of a business that is a joint operation and had rights to the assets and obligations for the liabilities relating to that joint operation immediately before the acquisition date, the transaction is a business combination achieved in stages. The acquirer shall therefore apply the requirements for a business combination achieved in stages, including remeasuring its previously held interest in the assets and liabilities of the joint operation at fair value. IFRS 11 is amended to clarify that a party that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes a business as defined in IFRS 3. In such cases, previously held interests in the joint operation are not remeasured. These amendments are not expected to have an impact to the Group's consolidated statements of financial position or performance. Amendments to IFRS 9, Prepayment Features with Negative Compensation IFRS 9 is amended to clarify that financial assets with prepayment features that may result in negative compensation qualify as contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. These amendments are not expected to have an impact to the Group's consolidated statements of financial position or performance since there is no financial assets with prepayment features as of December 31, 2018. Amendments to IAS 12, Income Tax Consequences of Payments on Financial Instruments Classified as Equity IAS 12 is amended to clarify that an entity shall recognise the income tax consequences of dividends as defined in IFRS 9 when it recognises a liability to pay a dividend. An entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events. These amendments are not expected to have an impact to the Group's consolidated statements of financial position or performance. Amendments to IAS 23, Borrowing Costs Eligible for Capitalisation IAS 23 is amended to clarify that when the entity calculates the borrowing costs eligible for capitalisation from general borrowings, the entity shall exclude from this calculation borrowing costs applicable to borrowings made specifically for the purpose of obtaining a qualifying asset until substantially all the activities necessary to prepare that asset for its intended use or sale are complete. These ammendments are not expected to have an impact to the Group's consolidated statements of financial position or performance. Amendments to IAS 28, Long-term Interests in Associates and Joint Ventures IAS 28 is amended to provides that the entity shall apply IFRS 9 to financial instruments in an associate or joint venture to which the equity method is not applied. These include long-term interests that, in substance, form part of the entity's net investment in an associate or joint venture. These amendments are not expected to have an impact to the Group's consolidated statements of financial position or performance since there are no long-term interests in associates and joint ventures as of December 31, 2018. Amendment to IAS 19, Plan Amendment, Curtailment, or Settlement The amendments address the accounting when a plan amendment, curtailment or settlement occurs during a reporting period. The amendments specify that when a plan amendment, curtailment or settlement occurs during the annual reporting period, an entity is required to: - Determine current service cost for the remainder of the period after the plan amendment, curtailment or settlement, using the actuarial assumptions used to remeasure the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event - Determine net interest for the remainder of the period after the plan amendment, curtailment or settlement using: the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event; and the discount rate used to remeasure that net defined benefit liability (asset). The amendments also clarify that an entity first determines any past service cost, or a gain or loss on settlement, without considering the effect of the asset ceiling. This amount is recognised in profit or loss. An entity then determines the effect of the asset ceiling after the plan amendment, curtailment or settlement. Any change in that effect, excluding amounts included in the net interest, is recognised in other comprehensive income. These amendments will apply only to any future plan amendments, curtailments, or settlements of the Group. Effective for annual periods beginning on or after January 1, 2020 Amendment to IAS 1 and IAS 8, Definition of Material IAS 1 and IAS 8 are amended to clarify the definition of material and its application by: - aligning the wording of the definition of material across IFRS Standards and other publications and making minor improvements to that wording; - including some of the supporting requirements in IAS 1 in the definition to give them more prominence; and - clarifying the explanation accompanying the definition of material. The amended definition of material states “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity”. These amendments are not expected to have an impact to the Group’s consolidated financial position or performance. Amendments to IFRS 3, Definition of a Business IFRS 3 is amended to clarify the definition of business in order to assist the entity in determining whether a transaction should be recorded as a business combination or asset acquisition. In general, these amendments: - clarify that business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or generating other income from ordinary activities; - add an optional test (the concentration test) to permit a simplified assessment of whether an acquired set of activities and assets is not a business; - clarify that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output; and - add guidelines and illustrative examples to help the entity assess whether an acquired process is substantive if the acquired set of activities and assets does not have outputs and if it does have outputs. These amendments are expected to have an impact to the Group’s future business combinations. Effective for annual periods beginning on or after January 1, 2021 IFRS 17, Insurance Contract, considered to be not applicable to the Group’s consolidated financial statements. The effective date was postponed to a date yet to be determined Amendments to IFRS 10 and IAS 28, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The amendments provide guidance for accounting treatment when a parent loses control of a subsidiary in a transaction with an associate or joint venture. The amendments require full gain to be recognised when the assets transferred meet the definition of a “business” under IFRS 3, Business Combinations. These amendments are not expected to impact the Group’s consolidated statements of financial position or performance |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of preparation of the financial statements | a. Basis of preparation of the 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. |
Principles of consolidation | 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 statements of profit or loss and other comprehensive income from the date the Group gains financial control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. Intercompany balances and transactions have been eliminated in the consolidated financial statements. In case of loss of control over a subsidiary, the Group: · derecognises the assets (including goodwill) and liabilities of the subsidiary at the carrying amounts on the date when it loses control; · derecognises the carrying amounts of any non-controlling interests of its former subsidiary on the date when it loses control; · recognises the fair value of the consideration received (if any) from the transaction, events, or condition that caused the loss of control; · recognises the fair value of any investment retained in the subsidiary at fair value on the date of loss of control; and · recognises any surplus or deficit in profit or loss that is attributable to the Group. |
Transactions with related parties | c. Transactions with related parties The Group has transactions with related parties. The definition of related parties used is in accordance with International Accounting Standards (“IAS”) 24, Related Party Disclosures. The party which is considered a related party is a person or entity that is related to the entity that is preparing its financial statements. 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. |
Business combinations | 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 recognised at their fair values at the acquisition date. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses 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 recognised 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 recognised in profit or 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 recognised 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. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group shall report in its consolidated financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, the Group shall retrospectively adjust the provisional amounts recognised at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognised as of that 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 recognises the resulting gain or loss, if any, in profit or loss. |
Cash and cash equivalents | e. Cash and cash equivalents Cash and cash equivalents comprises cash on hand, cash 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 statements of financial position. |
Investments in associated companies | 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 recognised at cost. The carrying amount of the investment is adjusted to recognise 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; and 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 recognised directly in the equity of the associate, the Group recognises its 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 recognises 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. |
Trade and other receivables | g. Trade and other receivables Trade and other receivables are recognised initially at fair value and subsequently measured at amortized cost, less a loss allowance based on lifetime expected credit losses at each reporting date. The Group has established a credit provision methodology that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Receivables are written off in the year they are determined to be uncollectible. |
Inventories | 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, 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 recognised 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 recognised as an 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 recognised 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. |
Prepaid expenses | i. Prepaid expenses Prepaid expenses are amortized over their future beneficial periods using the straight-line method. |
Assets held for sale | 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. |
Intangible assets | k. Intangible assets Intangible assets mainly consist of software. Intangible assets are recognised if it is highly probable that the expected future economic benefits that are attributable to each asset will flow to the Group, and the cost of the asset can be reliably measured. Intangible assets are stated at cost less accumulated amortization and impairment losses, if any. Intangible assets are amortized over their estimated useful lives. The Group estimates the recoverable value of its intangible assets. When the carrying amount of an intangible asset exceeds its estimated recoverable amount, the asset is written down to its estimated recoverable amount. Intangible assets except goodwill are amortized using the straight-line method, based on the estimated useful lives of the intangible assets as follows: Years Software 3-6 License 3-20 Other intangible assets 1-30 Intangible assets are derecognised 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 recognised in the consolidated statements of profit or loss and other comprehensive income. |
Property and equipment | l. Property and equipment Property and equipment are stated at cost less accumulated depreciation and impairment losses, if any. 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 are depreciated or amortized using the straight-line method based on the estimated useful lives of the assets as follows: Years Land rights 50 Buildings 15-40 Leasehold improvements 2-15 Switching equipment 3-15 Telegraph, telex and data communication equipment 5-15 Transmission installation and equipment 3-25 Satellite, earth station and equipment 3-20 Cable network 5-25 Power supply 3-20 Data processing equipment 3-20 Other telecommunication peripherals 5 Office equipment 2-5 Vehicles 4-8 Customer Premises Equipment (“CPE”) assets 4-5 Other equipment 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 measured reliably. 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 disposed of, their cost and the related accumulated depreciation are derecognised from the consolidated statements of financial position and the resulting gains or losses on the disposal or sale of the property and equipment are recognised 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 or sale. |
Leases | 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 recognised 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 recognised 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 recognised 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. |
Trade payables | n. Trade payables Trade payables are obligations to pay for goods and/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 recognised initially at fair value and subsequently measured at amortized cost using the effective interest method. |
Borrowings | o. Borrowings Borrowings are recognised 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 recognised 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 recognised 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 prepayment for liquidity services and amortized over the period of the facilities to which it relates. |
Foreign currency translations | p. Foreign currency translations The functional currency and the reporting currency of the Group are both the Indonesian rupiah, except for the functional currency of Telekomunikasi Indonesia International Ltd., Hong Kong, Telekomunikasi Indonesia International Pte. Ltd., Singapore, Telekomunikasi Indonesia International Inc., USA, and Telekomunikasi Indonesia International S.A., Timor Leste whose functional currency is U.S. dollars, Telekomunikasi Indonesia International, Pty. Ltd., Australia whose functional currency is Australian dollars, and TS Global Network Sdn. Bhd. and Telekomunikasi Indonesia International Sdn. Bhd. whose functional currency is Malaysian ringgit. 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): 2017 2018 Buy Sell Buy Sell United States dollar (“US$”) 1 13,565 13,570 14,375 14,385 Australian dollar (“AUD”) 1 10,592 10,598 10,157 10,167 Euro ("EUR") 1 16,231 16,242 16,432 16,446 Japanese yen ("JPY") 1 120.48 120.55 130.56 130.70 Malaysian ringgit ("MYR") 1 3,349 3,355 3,474 3,480 The resulting foreign exchange gain or losses, realized and unrealized, are credited or charged to the consolidated statements of profit or loss and other comprehensive income, 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). For the purpose of reporting, the assets and liabilities of subsidiaries that functional currencies are different with the Group's functional currency 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 "Other Reserves" in the equity section of the consolidated statements of financial position. |
Revenue and expense recognition | q. Revenue and expense recognition Revenue from contract with customers IFRS 15 establishes a comprehensive framework to determine how, when and how much revenue is to be recognised. The standard provides a single, principles-based five-step model for the determination and recognition of revenue to be applied to all contracts with customers. The standard also provides specific guidance requiring certain types of costs to obtain and/or fulfil a contract to be capitalized and amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the capitalized cost relates. The Group adopted IFRS 15 as at January 1, 2018 using the modified retrospective method by recognising the cumulative effect of initially applying IFRS 15 as an adjustment to the opening balance of equity at January 1, 2018. The Group has also elected to apply the following practical expedients on the transition date: · Completed contracts - the Group applied IFRS 15 only to customer contracts that had not been completed on January 1, 2018; and · Contract modifications - instead of applying a retrospective approach to quantify the cumulative effects of contract modifications from the time each modification was made; the Group aggregated the effects of all contract modifications that occured before January 1, 2018 in order to: (i) (ii) (iii) Moreover, the Group also elected to apply practical expedient to not account for the effect of financing component when the period between the payment for a promised good or service and the transfer for such good or service to the customer is less than one year, in adopting IFRS 15. Below is the summary of the Group’s revenue recognition accounting policy for each revenue stream: i. Mobile Revenue from mobile primarily comprises of revenue from cellular service which among others: telephone service, interconnection service, internet and data service and Short Messaging Services (“SMS”) service. Those services are offered on postpaid or prepaid basis, which for prepaid, the sales of starter packs (also known as SIM cards and start-up load vouchers) and pulse reload vouchers are recognised initially as contract liabilities. The Group recognise contract assets for provision of service from postpaid customers not yet billed. All mobile services revenues are recognised based on output method, either per actual usage or allowance unit used (if services sold in plan basis), because the customer simultaneously receives and consumes the benefits provided by the Group. For services sold in bundled plan, total consideration is allocated to performance obligations based on stand-alone selling price for each of product and/or service. The Group estimated the stand-alone selling price using the price enacted if the services are sold on a stand-alone basis. Most bundled plans sold by the Group only include services which are generally satisfied over the same period of time. Therefore the revenue recognition pattern is generally not impacted by the allocation. As part of its marketing programme, the Group had a customer loyalty programme named “Telkomsel Poin”, which allows customers to accumulate points for every certain multiple of the telecommunication service usage. The points can be redeemed in the future for free or discounted products or services, provided that other qualifying conditions are achieved. The consideration that is received is allocated between the telecommunication services and the points issued, with the consideration allocated to points that are equal to its fair value. The fair value of the points is determined according to historical information relating to the redemption rate of award points. The fair value of the points that are issued is deferred and recognised as revenue when the points are redeemed or have expired. ii. Consumer Revenue from Consumer primarily comprises of revenue from telephone service, internet and data service and paid TV service. Those services are offered on postpaid basis which billed in in the following month. The contracts are offered as month to month contract. All consumer services are recognised using the output method based on the customer's actual usage or time elapsed if the service sold as plan basis as the customer simultaneously receives and consumes the benefits provided by the Group. The Group has a bundled services plan named “Indihome”. Under this bundled plan, the customer is allowed to subscribe to a combination of Consumer’s service (i.e. telephone, internet and data and paid TV). The Group allocates the total contract price to the distinct performance obligations based on the stand-alone selling price of each performance obligation. The Group estimates the stand-alone selling price using the price enacted if the services are sold on a stand-alone basis. Customers may be required to pay an upfront fee at the commencement of the contract. The upfront fee is considered to be a material right because the customer is not required to pay an upfront fee when the customer renews the service beyond the original contract period. The Group values the renewal option in the amount of the consideration received from the upfront fee for the installation service. The Group defers the amount of renewal option and recognises it as revenue on a straight-line basis over the expected term of the customer relationships. The Group estimates the expected customer life based on the historical information and customer trends and updates the evaluation on an annual basis. iii. Enterprise Revenue from Enterprise primarily comprises of revenue from providing telephone service, data and internet service, information technologies service, and other services (e.g. sales of peripherals, manage service, call center service, e-health, e-payment, and others.). Some of the contracts with enterprise customers are bespoke in nature. Revenues from enterprise are recognised overtime using output method based on actual usage or time elapsed if the provision of service does not depend on usage (i.e. minute of voice, kilobyte of data, etc.), except for sales of goods which are recognised as a point in time, because the customer simultaneously receives and consumes the benefits provided by the Group. Revenues for performance obligations that are satisfied at a point in time is recognised when control of goods is transferred to the customer, typically when the customer has physical possession of the goods. Some of the arrangements in enterprise are offered as bundled arrangements. For bundled arrangements, the product and/or service in the contract is accounted for as an individual performance obligation when it is separately identifiable from other promises in the contract and the customer can benefit from the product/service on its own. The total consideration is allocated to each distinct performance obligation that has been included in the contract, based on its stand-alone selling price. The stand-alone selling price is determined according to the observable prices at which individual product and/or service are sold separately, adjusted for market conditions and normal discounts as appropriate. Alternatively, when the observable prices are not available, the expected cost plus margin approach is used to determine the stand-alone selling prices. Certain contracts with enterprise customers may give rise to variable consideration as the contract price depends on a future event (e.g. usage based contract or revenue-share based contract). In estimating the variable consideration, the Group is required to use either the expected value method or the most likely amount method based on the method that better predicts the amount of consideration to which it will be entitled. The Group determines that the most expected value method is the appropriate method to use in estimating the variable consideration for a single contract with a large number of possible outcomes. Before including any amount of variable consideration in the transaction price, the Group considers whether the amount of variable consideration is constrained. The Group determines that the estimates of variable consideration are not constrained based on its historical experience, business forecast and the current economic conditions and only includes variable consideration to the extent that it is highly probable that a significant reversal in the amount of cummulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. When another party is involved in providing products and/or services to a customer, the Group is the principal if it controls the specified products and/or services before those products and/or services are transferred to the customer. Revenues are recorded on the net amount that has been retained (the amount paid by the customer less the amount paid to the suppliers), when, in substance, the Group has acted as agent and earned commission from the suppliers of the products and/or services sold. iv. WIBS Revenue from WIBS is mainly comprised of interconnections service for interconnection of other telecommunications carriers’ subscriber calls to the Group’s subscribers (incoming) and calls between other telecommunications carriers subscribers through the Group’s network (transit) and network service with other telecommunications carriers. All of these services are recognised based on output method using the basis of the actual recorded traffic for the month . Some of the arrangements with WIBS customers contain a significant financing component as the time between the recognition of revenue and cash receipt is expected to exceed one year. The Group is expected to have a significant financing component in contracts involving the provision indefeasible rights of use which have been paid up-front by the customers. Incremental cost of obtaining/fulfilling contract with customers The incremental costs of obtaining/fulfiling contracts with customers, which principally is comprised of sales commissions and contract fulfilment costs, are initially recognised on the statement of financial position. These costs are subsequently amortised on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services. Costs that do not qualify as costs of obtaining/fulfilling contract with customers are expensed as incurred or in accordance with other relevant standards. Revenue from other sources Revenue from other source’s comprise of revenue from telecommunication tower leases and other rental. Rental income is recognised on a straight-line basis over the lease term and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned. Accounting policy for revenue applied until December 31, 2017 i. Cellular and fixed wireless telephone revenues Revenues from postpaid service, which consist of usage and monthly charges, are recognised as follows: · Airtime and charges for value added services are recognised based on usage by subscribers; and · Monthly subscription charges are recognised 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 recognised initially as unearned income and recognised 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 recognised as customers incur the charges. Monthly subscription charges are recognised as revenues when incurred by subscribers. Revenues from fixed line installations are deferred and recognised 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 23 years. iii. Interconnection revenues Revenues from network interconnection with other domestic and international telecommunications carriers are recognised 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 services revenues Revenues from data communication and internet are recognised 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 recognised when the goods are delivered to customers or the installation takes place. Revenue from computer software development service is recognised using the percentage-of-completion method. v. Network revenues Revenues from network consist of revenues from leased lines and satellite transponder leases which are recognised over the period in which the services are rendered. vi. Other revenues Revenues from sales of peripherals or other telecommunications equipments are recognised when delivered to customers. Revenues from telecommunication tower leases are recognised on straight-line basis over the lease period in accordance with the agreement with the customers. Revenues from other services are recognised 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 recognised as revenue when the points are redeemed or expired. Expense Expenses are recognised as they are incurred. |
Employee benefits | r. 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 recognised as expense on undiscounted basis when employees have rendered service to the Group. ii. Post-employment benefit plans and other long-term employee benefits Post-employment benefit plans consist of funded and unfunded defined benefit pension plans, defined contribution pension plan, other post-employment benefits, post-employment health care benefit plan, defined contribution health care benefit plan and obligations under the Labor Law. Other long-term employee benefits consist of Long Service Awards (“LSA”), Long Service Leave (“LSL”), and pre-retirement benefits. The cost of providing benefits under post-employment benefit plans and other long-term employee benefits calculation is performed by an independent actuary using the projected unit credit method. The net obligations in respect of the defined pension benefit plans and post-retirement health care benefit plan 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 plan and post-retirement health care benefits plan as well as qualifying insurance policy. The assets are measured at 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 gains 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 recognised 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 recognised immediately in profit or loss on the earlier of: · The date of plan amendment or curtailment; and · The date that the Group recognised restructuring-related costs. Net interest is calculated by applying the discount rate to the net defined benefit liabilities or assets. Gains or losses on curtailment are recognised 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 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. Gains or losses on settlement are recognised when there is a transaction that eliminates all further legal or constructive obligation for part or all of the benefits provided under a defined benefit plan (other than the payment of benefit in accordance with the program and included in the actuarial assumptions). For defined contribution plans, the regular contributions constitute net periodic costs for the period in which they are due and, as such, are included in “Personnel Expenses” as they become payable. iii. Share-based payments The Company operates an equity-settled, share-based compensation plan. The fair value of the employee’s services rendered which are compensated with the Company’s shares is recognised 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 Group make 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. |
Income tax | s. Income tax Current and deferred income taxes are recognised as income or 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 recognised directly in equity, in which case, the tax is recognised directly in equity. Current tax assets and liabilities are measured at the amount 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 recognises 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 recognises 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. Tax deduction from the reversal of deferred tax assets is excluded from the estimation of future taxable income. 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 SKP are recognised in the current year profit or loss, unless objection/appeal is taken. The additional taxes and penalty imposed through SKP are deferred as long as they meet the asset recognition criteria. Indonesian tax regulations impose final tax on several types of transactions based on the gross value of the transaction. Therefore, such transaction remains subject to tax even though the taxpayer incurred a loss on the transaction. Final income tax on construction services and lease is presented as part of “Other Expenses”. |
Financial instruments | t. Financial instruments The Group classifies financial instruments into financial assets and financial liabilities. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. i. Financial assets Initial recognition and measurement Financial assets are classified, at initial recognition, and subsequently measured at amortised cost, fair value through OCI (“FVTOCI”), and fair value through profit or loss (“FVTPL”). The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15. In order for a financial asset to be classified and measured at amortised cost or FVTOCI, it needs to give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding. This assessment is referred to as the solely payments of principal and interest test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. 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 recognised on the trade date, i.e., the date that the Group commits to sell the asset. Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: a. Financial assets at amortised cost (debt instruments) This category is the most relevant to the Group. The Group measures financial assets at amortised cost if both of the following conditions are met: · The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and · The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortised cost are subsequently measured using the effective interest rate (“EIR”) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Group’s financial assets at amortised cost consist of cash and cash equivalents, other current financial assets, trade and other receivables, and other non-current assets (long-term trade receivables and restricted cash). b. Financial assets at FVTOCI with recycling of cumulative gains and losses (debt instruments) The Group measures debt instruments at FVTOCI if both of the following conditions are met: · The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; and · The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. For debt instruments at FVTOCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss. The Group’s debt instruments at FVTOCI primarily consist of other current financial assets. c. Financial assets designated at FVTOCI with no recycling of cumulative gains and losses upon derecognition (equity instruments) Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at FVTOCI when they meet the definition of equity under IAS 32, Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at FVTOCI are not subject to impairment assessment. There’s no equity investments elected under this category as of December 31, 2017 and 2018. d. Financial assets at FVTPL Financial assets at FVTPL include financial assets held for trading, financial assets designated upon initial recognition at FVTPL, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at FVTPL, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at FVTOCI, as described above, debt instruments may be designated at FVTPL on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Financial assets at FVTPL are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss. Expected credit losses (“ECL”) The Group recognises an allowance for ECL for all debt instruments not held at FVTPL. ECL are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECL are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECL are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). For trade receivables and contract assets, the Group applies a simplified approach in calculating ECL. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECL at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. For debt instruments at FVTOCI, the Group applies the low credit risk simplification. At every reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the external credit rating of the debt instrument. In addition, the Group considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due. The Group’s debt instruments at FVTOCI comprise solely of quoted bonds that are graded in the top investment category (Very Good and Good) by the Good Credit Rating Agency and, therefore, are considered to be low credit risk investments. It is the Group’s policy to measure ECL on such instruments on a 12-month basis. However, when there has been a significant increase in credit risk since origination, the allowance will be based on the lifetime ECL. The Group uses the ratings from the Good Credit Rating Agency both to determine whether the debt instrument has significantly increased in credit risk and to estimate ECL. The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. Trade receivables is written off when there is low possibility of recovering the contractual cash flow, after all collection efforts have been done and have been fully provided for allowance. ii. Financial liabilities Initial recognition and measurement The Group classifies its financial liabilities as: (i) financial liabilities at FVTPL or (ii) financial liabilities measured at amortized cost. The Group’s financial liabilities include trade and other payables, accrued expenses, interest-bearing loans, other borrowings and other liabilities. Interest-bearing loans consist of short-term bank loans, two-step loans, bonds and notes, long-term bank loans and obligations under finance leases. Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: a. Financial liabilities at FVTPL Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. No financial liabilities were categorized at FVTPL as of December 31, 2017 and 2018. Gains or losses on liabilities held for trading are recognised in the statement of profit or loss. Financial liabilities designated upon initial recognition at FVTPL are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Group has not designated any financial liability as at FVTPL. b. Financial liabilities measured at amortized cost This is the category most relevant to the Group. After initial recognition, interest-bearing loans and other borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss. This category generally applies to interest-bearing loans and other borrowings. For more information, refer to Note 19 Long-Term Loans and Other Borrowings. iii. Offsetting financial instruments Financial assets and liabilities are offset and the net amount is reported in the consolidated statements of financial position when there is a legally enforceable right to offset the recognised 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: (i) the normal course of business; (ii) the event of default; and (iii) the event of insolvency or bankruptcy of the Group and all of the counterparties. iv. Derecognition of financial instruments The Group derecognises 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 derecognises a financial liability when the obligation specified in the contract is discharged or cancelled or has expired. v. Hedge Accounting The group does not apply hedge accounting. |
Treasury stock | u. Treasury stock Reacquired Company shares of stock are accounted for at their reacquisition cost and classified as “Treasury Stock” and presented as a deduction in equity. The cost of treasury stock sold/transferred is accounted for using the weighted average method. The portion of treasury stock transferred for employee stock ownership program is accounted for at its fair value at grant date. The difference between the cost and the proceeds from the sale/transfer of treasury stock is credited to “Additional Paid-in Capital”. |
Dividends | v. Dividends Dividend for distribution to the stockholders is recognised as a liability in the consolidated financial statements in the year in which the dividend is approved by the stockholders. The interim dividend is recognised as a liability based on the Board of Directors’ decision supported by the approval from the Board of Commissioners. |
Basic and diluted earnings per share and per ADS | w. Basic and diluted earnings per share and 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 instruments. |
Segment information | x. 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 ("CODM") 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. |
Provisions | y. Provisions Provisions are recognised 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 recognised 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. |
Impairment of non-financial assets | z. 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 (“VIU”). Where the carrying amount of the asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing the value in use, the estimated net future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. 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 recognised 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 recognised 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 recognised 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 recognised. 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 recognised for the asset in prior periods. Reversal of an impairment loss is recognised 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 recognised. Impairment loss relating to goodwill can not be reversed in future periods. |
Changes in accounting policy and disclosures | aa. Changes in accounting policy and disclosures The Group has applied IFRS 9 modified retrospective approach on the required effective date, January 1, 2018. The 2018 opening balances have been adjusted, but the previous periods have not been restated. Some of the key changes that impacted the Group include the following: a. Under IFRS 9, the Group classifies its financial assets as at amortized cost, at FVTPL, and at FVTOCI. Previously under IAS 39, its classified as loan and receivables and available for sale. The classification is based on two criteria: the Group’s business model for managing the assets; and whether the instruments’ contractual cash flows represent solely payments of principal and interest on the principal amount outstanding. The assessment of the Group’s business model was made as of the date of initial application, January 1, 2018, and then applied retrospectively to those financial assets that were not derecognised before January 1, 2018. The assessment of whether contractual cash flows on debt instruments are solely payments of principal and interest was made based on the facts and circumstances as at the initial recognition of the assets. The classification and measurement requirements of IFRS 9 have an impact on some of the Group’s available for sale financial assets as they have to be measured at FVTPL as the instruments’ contractual cash flow does not represent solely payments of principal and interest. The Group continued measuring at amortised cost for all financial assets previously classified as loans and receivables under IAS 39. The table below illustrates the classification and measurement of financial assets under IFRS 9 and IAS 39 at the date of initial application, January 1, 2018: Original New measurement measurement category under category under IAS 39 IFRS 9 Cash and cash equivalents Loans and receivables Amortised cost Trade and other receivables Loans and receivables Amortised cost Convertible bonds Available for sale FVTPL Debt instruments Available for sale FVTOCI Long term investments Available for sale FVTPL b. The adoption of IFRS 9 has fundamentally changed the Group’s accounting for impairment losses for financial assets by replacing IAS 39’s incurred loss approach with a forward-looking ECL approach. IFRS 9 requires the Group to recognise an allowance for ECL for all debt instruments not held at FVTPL and contract assets. The table below is reconciliation of the ending impairment allowance under IAS 39 and IFRS 9 at the date of initial application, January 1, 2018: Original carrying Remeasurement New carrying amount amount under IAS 39 under IFRS 9 under IFRS 9 Cash and cash equivalents — (4) (4) Trade and other receivables (4,335) (185) (4,520) Contract assets — (34) (34) The Group has adopted IFRS 15 from January 1, 2018 using the modified retrospective approach, which means the Group elected not to restate comparative figures but any adjustments to the carrying amounts at transition date were recognised in the opening balance of retained earnings, other reserves and non-controlling interest. Some of the key changes that impacted the Group include the following: · Based on the new requirements under IFRS 15, contract assets and contract liabilities have been added as new lines in the consolidated statements of financial position. Previously, contract assets were reported as trade receivables and contract liabilities were reported as unearned income. · Contract costs that consist of costs to obtain and fulfill the contract have been added as new line in the consolidated statement of financial position. Previously, these contract costs were expensed as incurred or amortised with systematic basis that is inconsistent with the recognition of related revenue. · Revenues from contracts with customers which measured under IFRS 15 are separately presented from revenues from other sources. In the transition date of the standard, the application of variable consideration and timing of revenue recognition principle results in the Group recognising an increase in retained earnings as the amount of revenue recognised for the completed performance obligation under IFRS 15 is greater than the revenue recognised under the previous revenue standard. In return, the Group recognises contract assets as the Group’s right to consideration in exchange for the completed performance obligation. The contract assets are subsequently reclassified as trade receivables when the consideration becomes unconditional. The Group also recognises capitalisation of incremental costs of obtaining and fulfilling the contracts with customers. In contrast to the previous standards that required the Group to expense these costs as incurred, the capitalised contract costs are now amortised on a consistent basis with the transfer to the customer of the goods or services to which the contract costs relate. The effect of adopting IFRS 9 & 15 was, as follows: IFRS 9 & 15 adjustment STATEMENT OF FINANCIAL POSITION ASSETS Cash and cash equivalents (4) Trade and other receivables (1,507) Contract assets 1,311 Contract costs 1,096 Other current assets (666) Long-term investments 69 Deferred tax assets (82) Other non-current assets 27 LIABILITIES Contract liabilities 68 Deferred tax liabilities (82) EQUITY Retained earnings 315 Other reserves (27) Non-controlling interests (30) The impact of the changes to the current year financial statements is as follow: Previous standards IFRS 9 & 15 New standards December 31, 2018 adjustment December 31, 2018 STATEMENT OF FINANCIAL POSITION ASSETS Cash and cash equivalents 17,439 (4) 17,435 Other current financial assets 1,304 10 1,314 Trade and other receivables 12,141 (2,213) 9,928 Contract assets — 1,560 1,560 Contract costs - current portion — 924 924 Other current assets 7,982 (702) 7,280 Long-term investments 2,472 190 2,662 Contract costs - non-current portion — 320 320 Deferred tax assets 2,504 (27) 2,477 Other non-current assets 9,672 (18) 9,654 LIABILITIES Unearned income - current portion 5,190 (5,190) — Contract liabilities - current portion — 5,252 5,252 Unearned income - non-current portion 652 (652) — Contract liabilities - non-current portion — 652 652 Deferred tax liabilities 1,252 (55) 1,197 Long-term loans and other borrowings 33,748 (5) 33,743 EQUITY Retained earnings 91,396 92 91,488 Other reserves 304 17 321 Non-controlling interests 18,338 (71) 18,267 STATEMENT OF PROFIT OR LOSS Revenues 130,784 4 130,788 Operation, maintenance and telecommunication service expenses (43,791) (102) (43,893) Marketing expenses (4,214) 213 (4,001) General and administrative expenses (6,137) (457) (6,594) Gain on foreign exchange - net 68 3 71 Other income 1,752 (7) 1,745 Other expenses (750) 70 (680) Finance costs (3,507) (16) (3,523) Income tax expenses (9,426) 60 (9,366) OCI Foreign currency translation 146 2 148 Net gain on available-for-sale (10) 10 — The change in new accounting standards did not have material impact on the Group’s consolidated statements of cash flows and the basic and diluted EPS. |
Critical accounting estimates and assumptions | ab. Critical accounting estimates and assumptions Estimates and assumptions 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 makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions at the reporting date, 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. 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 and return on investment. Any changes in these assumptions will impact the carrying amount of the 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. 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 benefit obligations. Other key assumptions for retirement benefit obligations are based in part on current market conditions. Additional information is disclosed in Notes 31 and 32. 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 expectation of physical wear and tear, technical or commercial obsolescence and legal or other limitations on the continuing 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 12. iii. Credit loss provision for financial asset For trade receivables and contract assets, the Group applies a simplified approach in calculating ECL. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECL at each reporting date. The Group has established a credit provision methodology that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. For time deposits and debt instruments at FVTOCI, the Group evaluates whether the time deposits or debt instrument are considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the external credit rating of the instrument. In addition, the Group considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due. iv. Revenue a. Critical judgements in determining the performance obligation, timing of revenue recognition and revenue classification The Group provides services to enterprise customer that are bespoke in nature. Bespoke products consist of various goods and/or services bundled together in order to provide integrated solution services to customers. In addition to the bespoke service, Group also provide multiple standard product as bundling product in contract with customer. Significant judgment is required in determining the number and nature of distinct performance obligations promised to customers in those contracts. The number and nature of distinct performance obligations will determine the timing of revenue recognition for such contract. The Group reviews the determination of performance obligations on a contract-by-contract basis or by group of contracts if the products are standardized. When a contract consisting of several goods and/or service is assessed to have one performance obligations, the Group applies a single method of measuring progress for the performance obligation based on the measurement method that best depicts the economics of the contract, which in most cases is over time. The Group also presents the revenue classification using consistent approach. When a contract consisting of several goods and/or service is assessed to represent a single performance obligation, the Group presents that performance obligations in one financial statement line items which best represent the main service of the Group, which in most cases is the internet, data communication and information technology services. b. Critical judgements in determining the stand-alone selling price The Group provides wide array of products related to telecommunication and technology. To determine the stand-alone selling price for goods and/or services that do not have any readily available observable price, the Group uses the expected cost-plus margin approach. Significant judgment is required in determining the margin for each contract that contains goods and/or services with an unobservable price. The Group currently determines the appropriate margin based on historical achievement and information from an independent party. v. Income taxes Significant judgment 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 recognises 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 amounts of income tax are disclosed in Note 30. |
New accounting standards and interpretations not yet adopted | NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED Effective for annual periods beginning on or after January 1, 2019 IFRS 16, Leases IFRS 16 sets out a comprehensive model for identification of lease agreements and its treatment in the financial statements of both lessees and lessors. IFRS 16 introduces a control model for the identification of leases, distinguishing between leases and service contracts on the basis of whether there is an identified asset controlled by the customer. IFRS 16 supersedes a number of existing standards and interpretations, including IAS 17 - Leases, IFRIC 4 - Determining whether an Arrangement contains a Lease, SIC 15 - Operating Leases - Incentives, and SIC 27 - Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The Group elected to apply the standard by using the modified retrospective approach. Therefore, the cumulative effect of adopting IFRS 16 will be recognised as an adjustment to the opening balance of retained earnings at January 1, 2019, with no restatement of comparative information. Under IAS 17 Lease, Lessees recognised a periodic lease expense over the lease term for operating leases, while adoption of IFRS 16 resulted in the Group’s future minimum lease payments under non-cancellable operating leases to be recognised as lease liabilities with corresponding Right-of-Use (“RoU”) assets. The amounts are adjusted for the effects of discounting and the practical expedients available and selected by the Group. The Group elected the package of practical expedients permitted under the transition guidance within The Group as Lessee IFRS 16 establishes a single recognition model for all leases with terms longer than 12 months to record RoU assets and corresponding lease liabilities on the consolidated statement of financial position. Besides the carrying forward of the historical lease classification, the Group elected the package of practical expedients permitted under the transition guidance within IFRS 16 which allow the Group to apply single discount rate to a leases portfolio with reasonably similar characteristic such as similar assets in similar economic environment with the same end date. The Group also elected not to separate the lease components from non-lease components and included the initial direct costs in the measurement of the RoU assets, consequently the Group accounted for the whole contract as a lease. In addition, the election of the hindsight practical expedient will make the Group initial application of IFRS 16 to some extent more simple in determining the lease term, especially if the contract contains extension or termination options. Further, as permitted by the standard, the Group rely on the previous onerous lease provision as an alternative to perform an impairment review of each of its RoU assets on the transition date. The Group also elected the practical expedient to recognise RoU assets or lease liabilities for leases which the lease term ends within 12 months after January 1, 2019. The Group will recognise those lease payments on a straight-line basis over the lease term in the consolidated statement of profit or loss and other comprehensive income. The Group as Lessor The accounting for lessors under IFRS 16 is similar with the previous lease accounting standard, IAS 17 Leases. It requires the lessors to classify the lease as either operating lease or finance lease. The leases will be classified as financing if it transfers substantially the risks and rewards incidental to ownership of the underlying asset, otherwise it will be classified as an operating lease. The Group expect that the effect of the adoption will be material to the consolidated statement of financial position. The Group do not expect that the impact of the adoption will be material to the consolidated statement of profit of loss and other comprehensive income. The Group currently believe the most significant changes pertaining to the recognition of RoU assets and lease liabilities on the Group consolidated statement of financial position for operating assets such as transmission installation and equipment, land rights, buildings, data processing equipment and other assets as determined. The Group do not expect any significant changes in the Group leasing activities between now and the time of adoption. The Group continue to finalize the assessment of all of the potential impacts that the adoption of IFRS 16 will have on the Group consolidated financial statements, including evaluation of the existing lease portfolios, review of contractual arrangements for lease contracts, embedded leases, and collation all of the necessary information required to properly account for the leases under IFRS 16, and its disclosure. Additionally, the Group is continuing to identify necessary changes to the business process, system, and internal controls to prepare the adoption and meet the reporting standard. The aforementioned activities are monitored by a dedicated project team. IFRIC 23, Uncertainty over Income Tax Treatments IFRIC 23 clarifies how to apply the recognition and measurement requirements in IAS 12 Income Taxes when there is uncertainty over income tax treatments. When there is uncertainty over income tax treatments, IFRIC 23 addresses: - whether an entity considers uncertain tax treatments separately; - the assumptions an entity makes about the examination of tax treatments by taxation authorities; - how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates; and - how an entity considers changes in facts and circumstances. The Group is currently assessing on how the recognition and measurement of ongoing tax assessment would be affected by this IFRIC 23. Amendments to IFRS 3, Business Combination and IFRS 11, Joint Arrangements, previously Held Interest in a Joint Operation IFRS 3 is amended to clarify that when an entity obtains control of a business that is a joint operation and had rights to the assets and obligations for the liabilities relating to that joint operation immediately before the acquisition date, the transaction is a business combination achieved in stages. The acquirer shall therefore apply the requirements for a business combination achieved in stages, including remeasuring its previously held interest in the assets and liabilities of the joint operation at fair value. IFRS 11 is amended to clarify that a party that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes a business as defined in IFRS 3. In such cases, previously held interests in the joint operation are not remeasured. These amendments are not expected to have an impact to the Group's consolidated statements of financial position or performance. Amendments to IFRS 9, Prepayment Features with Negative Compensation IFRS 9 is amended to clarify that financial assets with prepayment features that may result in negative compensation qualify as contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. These amendments are not expected to have an impact to the Group's consolidated statements of financial position or performance since there is no financial assets with prepayment features as of December 31, 2018. Amendments to IAS 12, Income Tax Consequences of Payments on Financial Instruments Classified as Equity IAS 12 is amended to clarify that an entity shall recognise the income tax consequences of dividends as defined in IFRS 9 when it recognises a liability to pay a dividend. An entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events. These amendments are not expected to have an impact to the Group's consolidated statements of financial position or performance. Amendments to IAS 23, Borrowing Costs Eligible for Capitalisation IAS 23 is amended to clarify that when the entity calculates the borrowing costs eligible for capitalisation from general borrowings, the entity shall exclude from this calculation borrowing costs applicable to borrowings made specifically for the purpose of obtaining a qualifying asset until substantially all the activities necessary to prepare that asset for its intended use or sale are complete. These ammendments are not expected to have an impact to the Group's consolidated statements of financial position or performance. Amendments to IAS 28, Long-term Interests in Associates and Joint Ventures IAS 28 is amended to provides that the entity shall apply IFRS 9 to financial instruments in an associate or joint venture to which the equity method is not applied. These include long-term interests that, in substance, form part of the entity's net investment in an associate or joint venture. These amendments are not expected to have an impact to the Group's consolidated statements of financial position or performance since there are no long-term interests in associates and joint ventures as of December 31, 2018. Amendment to IAS 19, Plan Amendment, Curtailment, or Settlement The amendments address the accounting when a plan amendment, curtailment or settlement occurs during a reporting period. The amendments specify that when a plan amendment, curtailment or settlement occurs during the annual reporting period, an entity is required to: - Determine current service cost for the remainder of the period after the plan amendment, curtailment or settlement, using the actuarial assumptions used to remeasure the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event - Determine net interest for the remainder of the period after the plan amendment, curtailment or settlement using: the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event; and the discount rate used to remeasure that net defined benefit liability (asset). The amendments also clarify that an entity first determines any past service cost, or a gain or loss on settlement, without considering the effect of the asset ceiling. This amount is recognised in profit or loss. An entity then determines the effect of the asset ceiling after the plan amendment, curtailment or settlement. Any change in that effect, excluding amounts included in the net interest, is recognised in other comprehensive income. These amendments will apply only to any future plan amendments, curtailments, or settlements of the Group. Effective for annual periods beginning on or after January 1, 2020 Amendment to IAS 1 and IAS 8, Definition of Material IAS 1 and IAS 8 are amended to clarify the definition of material and its application by: - aligning the wording of the definition of material across IFRS Standards and other publications and making minor improvements to that wording; - including some of the supporting requirements in IAS 1 in the definition to give them more prominence; and - clarifying the explanation accompanying the definition of material. The amended definition of material states “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity”. These amendments are not expected to have an impact to the Group’s consolidated financial position or performance. Amendments to IFRS 3, Definition of a Business IFRS 3 is amended to clarify the definition of business in order to assist the entity in determining whether a transaction should be recorded as a business combination or asset acquisition. In general, these amendments: - clarify that business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or generating other income from ordinary activities; - add an optional test (the concentration test) to permit a simplified assessment of whether an acquired set of activities and assets is not a business; - clarify that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output; and - add guidelines and illustrative examples to help the entity assess whether an acquired process is substantive if the acquired set of activities and assets does not have outputs and if it does have outputs. These amendments are expected to have an impact to the Group’s future business combinations. Effective for annual periods beginning on or after January 1, 2021 IFRS 17, Insurance Contract, considered to be not applicable to the Group’s consolidated financial statements. The effective date was postponed to a date yet to be determined Amendments to IFRS 10 and IAS 28, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The amendments provide guidance for accounting treatment when a parent loses control of a subsidiary in a transaction with an associate or joint venture. The amendments require full gain to be recognised when the assets transferred meet the definition of a “business” under IFRS 3, Business Combinations. These amendments are not expected to impact the Group’s consolidated statements of financial position or performance |
GENERAL (Tables)
GENERAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GENERAL | |
Summary of licenses | License License No. Type of services Grant date/latest renewal date License of electronic money issuer Bank Indonesia License No. 11/432/DASP Electronic money July 3, 2009 License of money remittance Bank Indonesia License Money remittance service August 5, 2009 License to operate internet telephone services for public purpose 127/KEP/DJPPI/ KOMINFO/3/2016 Internet telephone services for public purpose March 30, 2016 License to operate fixed domestic long distance network 839/KEP/ M.KOMINFO/05/2016 Fixed domestic long distance and basic telephone services network May 16, 2016 License to operate fixed closed network 844/KEP/ M.KOMINFO/05/2016 Fixed closed network May 16, 2016 License to operate fixed international network 846/KEP/ M.KOMINFO/05/2016 Fixed international and basic telephone services network May 16, 2016 License to operate circuit switched based local fixed line network 948/KEP/ M.KOMINFO/05/2016 Circuit switched based local fixed line network May 31, 2016 License to operate data communication system services 191/KEP/DJPPI/ KOMINFO/10/2016 Data communication system services October 31, 2016 License to operate internet service provider 2176/KEP/ M.KOMINFO/12/2016 Internet service provider December 30, 2016 License to operate content service provider 1040/KEP/ M.KOMINFO/16/2017 Content service provider May 16, 2017 License for the implementation of internet Interconnection services 1004/KEP/ M.KOMINFO/2018 Interconnection services December 26, 2018 |
Summary of Boards of Commissioners and Directors | 2017 2018 President Commissioner Hendri Saparini Hendri Saparini Commissioner Rinaldi Firmansyah Edwin Hidayat Abdullah Commissioner Hadiyanto Rinaldi Firmansyah Commissioner — Isa Rachmatarwata Independent Commissioner Margiyono Darsasumarja Margiyono Darsasumarja Independent Commissioner* Dolfie Othniel Fredric Palit — Independent Commissioner Pamijati Pamela Johanna Pamijati Pamela Johanna Independent Commissioner Cahyana Ahmadjayadi Cahyana Ahmadjayadi President Director Alex Janangkih Sinaga Alex Janangkih Sinaga Director of Finance Harry Mozarta Zen Harry Mozarta Zen Director of Digital and Strategic Portfolio David Bangun David Bangun Director of Enterprise and Business Service Dian Rachmawan Dian Rachmawan Director of Wholesale and International Service Abdus Somad Arief Abdus Somad Arief Director of Human Capital Management Herdy Rosadi Harman Herdy Rosadi Harman Director of Network, Information Technology and Solution Zulhelfi Abidin Zulhelfi Abidin Director of Consumer Service Mas'ud Khamid Siti Choiriana * |
Summary of Audit Committee, Corporate Secretary, and Internal Audit | 2017 2018 Chairman Margiyono Darsasumarja Margiyono Darsasumarja Secretary Tjatur Purwadi Tjatur Purwadi Member Rinaldi Firmansyah Rinaldi Firmansyah Member Dolfie Othniel Fredric Palit — Member Sarimin Mietra Sardi Sarimin Mietra Sardi Member Cahyana Ahmadjayadi Cahyana Ahmadjayadi Corporate Secretary Andi Setiawan Andi Setiawan Internal Audit Harry Suseno Hadisoebroto Harry Suseno Hadisoebroto |
Summary of direct subsidiaries | Year of start of Subsidiary/place of commercial Percentage of ownership interest Total assets before elimination incorporation Nature of business operations 2017 2018 2017 2018 PT Telekomunikasi Seluler ( “Telkomsel” ), Jakarta, Indonesia Telecommunication - provides telecommunication facilities and mobile celuller services using Global Systems for Mobile Communication (“GSM”) technology 1995 65 65 85,597 82,219 PT Multimedia Nusantara ( “Metra” ) Jakarta, Indonesia Network telecommunication services and multimedia 1998 100 100 13,246 17,123 PT Dayamitra Telekomunikasi ( “Dayamitra” ) Jakarta, Indonesia Telecommunication 1995 100 100 13,606 13,221 PT Telekomunikasi Indonesia International ( “TII” ), Jakarta, Indonesia Telecommunication 1995 100 100 9,122 10,404 PT Graha Sarana Duta ( “GSD” ), Jakarta, Indonesia Leasing of offices and providing building management and maintenance services, civil consultant and developer 1982 100 100 5,633 5,794 PT Telkom Akses ( “Telkom Akses” ) Jakarta, Indonesia Construction, service and trade in the field of telecommunication 2013 100 100 5,716 4,244 PT PINS Indonesia ( “PINS” ), Jakarta, Indonesia Telecommunication construction and services 1995 100 100 3,473 4,004 PT Infrastruktur Telekomunikasi Indonesia (“ Telkom Infratel ”) , Jakarta, Indonesia Construction, service and trade in the field of telecommunication 2014 100 100 1,871 3,351 PT Telkom Satelit Indonesia (“ Telkomsat ”), previously PT Patra Telekomunikasi Indonesia Jakarta, Indonesia Telecommunication - provides satellite communication system, services and facilities 1996 100 100 574 3,190 PT Metra-Net (“ Metra-Net ”), Jakarta, Indonesia Multimedia portal service 2009 100 100 524 782 PT Jalin Pembayaran Nusantara (“ Jalin ”),Jakarta, Indonesia Payment services - principals, switching, clearing and settlement activities 2016 100 100 225 298 PT Napsindo Primatel Internasional ( “Napsindo” ), Jakarta, Indonesia Telecommunication - provides Network Access Point, Voice Over Data and other related services 1999; ceased operations on January 13, 2006 60 60 5 5 |
Summary of immediate indirect subsidiaries | Year of start of Subsidiary/place of commercial Percentage of ownership interest Total assets before elimination incorporation Nature of business operations 2017 2018 2017 2018 PT Sigma Cipta Caraka ( “Sigma” ), Tangerang, Indonesia Information technology service - system implementation and integration service, outsourcing and software license maintenance 1988 100 100 6,050 7,758 Telekomunikasi Indonesia International Pte. Ltd., ("Telin Singapore") Singapore Telecommunication 2008 100 100 3,048 3,413 PT Infomedia Nusantara ( “Infomedia” ), Jakarta, Indonesia Data and information service-provides telecommunication information services and other information services in the form of print and electronic media and call center services 1984 100 100 2,115 2,381 PT Telkom Landmark Tower (“ TLT ”), Jakarta, Indonesia Service for property development and management 2012 55 55 2,009 2,128 PT Metra Digital Media (“ MD Media ”), Jakarta, Indonesia Directory information services 2013 100 100 1,106 1,645 Telekomunikasi Indonesia International Ltd., ("Telin Hongkong") Hong Kong Telecommunication 2010 100 100 710 1,185 PT Metra Digital Investama (“ MDI ”), Jakarta, Indonesia Trading and/or providing service related to information and technology, multimedia, entertainment and investments 2013 100 100 658 1,178 PT Finnet Indonesia (“ Finnet ”) Jakarta, Indonesia Information technology services 2006 60 60 907 1,011 TS Global Network Sdn. Bhd. (“ TSGN ”) Petaling Jaya, Malaysia Satellite service 1996 49 70 815 828 Telekomunikasi Indonesia International S.A. (“ TL” ), Dili, Timor Leste Telecommunication 2012 100 100 639 677 PT Swadharma Sarana Informatika ("Swadharma") Jakarta, Indonesia System integrator services 2001 — 51 — 461 PT Melon (“ Melon ”), Jakarta, Indonesia Digital content exchange hub services 2010 100 100 231 457 PT Administrasi Medika (“ Ad Medika ”), Jakarta, Indonesia Health insurance administration services 2002 100 100 273 346 PT Nusantara Sukses Investasi ( ”NSI” ), Jakarta, Indonesia Service and trading 2014 100 100 300 286 PT Graha Yasa Selaras (“ GYS ”), Jakarta, Indonesia Tourism service 2012 51 51 178 250 PT Metraplasa (“ Metraplasa ”), Jakarta, Indonesia Network and e-commerce services 2012 60 60 203 167 Telekomunikasi Indonesia International Pty Ltd, ("Telkom Australia") Sydney, Australia Telecommunication 2013 100 100 123 115 PT Nutech Integrasi (" Nutech "), Jakarta, Indonesia System integrator 2001 60 60 60 93 Telekomunikasi Indonesia International (Malaysia) Sdn. Bhd (“Telin Malaysia”) Kuala Lumpur, Malaysia Telecommunication 2013 49 70 23 76 Telekomunikasi Indonesia International Inc. ( “Telkom USA” ), Los Angeles, USA Telecommunication 2014 100 100 36 57 PT Satelit Multimedia Indonesia (“ SMI ”), Jakarta, Indonesia Satellite services 2013 99.99 100.00 18 16 |
Schedule of fair values of identifiable assets and liabilities acquired at acquisition date | Total Assets Cash and cash equivalents 21 Trade receivables 18 Other current assets 57 Property and equipment (Note 12) 770 Other non-current assets 20 Liabilities Current liabilities (422) Non-current liabilities (155) Fair value of identifiable net assets acquired 309 Fair value of non-controlling interest (157) Goodwill (Note 14) 68 Fair value consideration transferred 220 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of intangible assets except goodwill | Years Software 3-6 License 3-20 Other intangible assets 1-30 |
Schedule of property and equipment | Years Land rights 50 Buildings 15-40 Leasehold improvements 2-15 Switching equipment 3-15 Telegraph, telex and data communication equipment 5-15 Transmission installation and equipment 3-25 Satellite, earth station and equipment 3-20 Cable network 5-25 Power supply 3-20 Data processing equipment 3-20 Other telecommunication peripherals 5 Office equipment 2-5 Vehicles 4-8 Customer Premises Equipment (“CPE”) assets 4-5 Other equipment 2-5 |
Schedule of disclosure of buy and sell rates used to translate monetary assets and liabilities denominated in foreign currency | 2017 2018 Buy Sell Buy Sell United States dollar (“US$”) 1 13,565 13,570 14,375 14,385 Australian dollar (“AUD”) 1 10,592 10,598 10,157 10,167 Euro ("EUR") 1 16,231 16,242 16,432 16,446 Japanese yen ("JPY") 1 120.48 120.55 130.56 130.70 Malaysian ringgit ("MYR") 1 3,349 3,355 3,474 3,480 |
Schedule of classification and measurement of financial under IFRS 9 and IAS 39 | Original New measurement measurement category under category under IAS 39 IFRS 9 Cash and cash equivalents Loans and receivables Amortised cost Trade and other receivables Loans and receivables Amortised cost Convertible bonds Available for sale FVTPL Debt instruments Available for sale FVTOCI Long term investments Available for sale FVTPL |
Reconciliation of the ending impairment allowance under IAS 39 and IFRS 9 | Original carrying Remeasurement New carrying amount amount under IAS 39 under IFRS 9 under IFRS 9 Cash and cash equivalents — (4) (4) Trade and other receivables (4,335) (185) (4,520) Contract assets — (34) (34) |
Statement of adjustments on financial position due to adoption of IFRS 9 and IFRS 15 | The effect of adopting IFRS 9 & 15 was, as follows: IFRS 9 & 15 adjustment STATEMENT OF FINANCIAL POSITION ASSETS Cash and cash equivalents (4) Trade and other receivables (1,507) Contract assets 1,311 Contract costs 1,096 Other current assets (666) Long-term investments 69 Deferred tax assets (82) Other non-current assets 27 LIABILITIES Contract liabilities 68 Deferred tax liabilities (82) EQUITY Retained earnings 315 Other reserves (27) Non-controlling interests (30) The impact of the changes to the current year financial statements is as follow: Previous standards IFRS 9 & 15 New standards December 31, 2018 adjustment December 31, 2018 STATEMENT OF FINANCIAL POSITION ASSETS Cash and cash equivalents 17,439 (4) 17,435 Other current financial assets 1,304 10 1,314 Trade and other receivables 12,141 (2,213) 9,928 Contract assets — 1,560 1,560 Contract costs - current portion — 924 924 Other current assets 7,982 (702) 7,280 Long-term investments 2,472 190 2,662 Contract costs - non-current portion — 320 320 Deferred tax assets 2,504 (27) 2,477 Other non-current assets 9,672 (18) 9,654 LIABILITIES Unearned income - current portion 5,190 (5,190) — Contract liabilities - current portion — 5,252 5,252 Unearned income - non-current portion 652 (652) — Contract liabilities - non-current portion — 652 652 Deferred tax liabilities 1,252 (55) 1,197 Long-term loans and other borrowings 33,748 (5) 33,743 EQUITY Retained earnings 91,396 92 91,488 Other reserves 304 17 321 Non-controlling interests 18,338 (71) 18,267 STATEMENT OF PROFIT OR LOSS Revenues 130,784 4 130,788 Operation, maintenance and telecommunication service expenses (43,791) (102) (43,893) Marketing expenses (4,214) 213 (4,001) General and administrative expenses (6,137) (457) (6,594) Gain on foreign exchange - net 68 3 71 Other income 1,752 (7) 1,745 Other expenses (750) 70 (680) Finance costs (3,507) (16) (3,523) Income tax expenses (9,426) 60 (9,366) OCI Foreign currency translation 146 2 148 Net gain on available-for-sale (10) 10 — |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CASH AND CASH EQUIVALENTS | |
Schedule of cash and cash equivalents | 2017 2018 Balance Balance Original currency Original currency Currency (in millions) Rupiah equivalent (in millions) Rupiah equivalent Cash on hand Rp — 12 — 36 Cash in banks Related parties PT Bank Mandiri (Persero) Tbk (“Bank Mandiri”) Rp — 1,481 — 1,199 US$ 27 367 10 139 JPY 7 1 8 1 EUR 1 17 1 20 HKD 1 2 1 1 AUD 0 0 0 0 PT Bank Negara Indonesia (Persero) Tbk (“BNI”) Rp — 968 — 791 US$ 1 13 2 28 EUR 0 6 0 0 SGD 0 0 0 0 PT Bank Rakyat Indonesia (Persero) Tbk (“BRI”) Rp — 466 — 728 US$ 6 82 2 31 PT Bank Tabungan Negara (Persero) Tbk (“BTN”) Rp — 7 — 342 Others Rp — 40 — 58 US$ 0 1 0 0 Sub-total 3,451 3,338 Third parties PT Bank Permata Tbk (“Bank Permata”) Rp — 278 — 218 US$ 0 2 2 30 PT Bank HSBC Indonesia ("HSBC") Rp — — — 1 The Hongkong and Shanghai Banking Corporation Ltd. ("HSBC Hongkong") US$ 14 184 12 181 HKD 4 6 5 9 Standard Chartered Bank (“SCB”) Rp — 0 — 0 US$ 11 154 10 148 SGD 0 1 1 14 PT Bank UOB Indonesia (“UOB”) Rp — 23 — 17 United Overseas Bank Limited ("UOB Singapore") US$ 1 15 4 55 SGD 0 2 1 14 MYR 2 8 3 9 Others Rp — 335 — 154 US$ 4 46 4 60 EUR 1 20 1 20 MYR 0 0 3 12 TWD 8 4 17 8 AUD 0 1 0 2 HKD 0 0 0 0 MOP 0 0 0 0 Sub-total 1,079 952 Total cash in banks 4,530 4,290 Time deposits Related parties BNI Rp — 5,315 — 2,640 US$ 9 116 58 837 BTN Rp — 2,958 — 2,559 US$ — — 31 446 BRI Rp — 4,954 — 1,911 US$ 15 203 47 676 PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk (“BJB”) Rp — 1,726 — 1,295 Bank Mandiri Rp — 446 — 611 US$ — — 16 230 Others Rp — 67 — 1 Sub-total 15,785 11,206 Third parties PT Bank Tabungan Pensiunan Nasional Tbk (“BTPN”) Rp — 676 — 181 US$ 30 401 25 363 UOB US$ 20 263 30 429 PT Bank Mega Tbk (“Bank Mega”) Rp — 1,243 — 365 PT Bank Bukopin Tbk (“Bank Bukopin”) Rp — 22 — 248 PT Bank CIMB Niaga Tbk (“Bank CIMB Niaga”) Rp — 600 — 190 US$ 2 31 — — PT Bank Muamalat Indonesia Tbk Rp — 91 — 40 PT Bank OCBC NISP Tbk (“OCBC NISP”) Rp — 1,200 — — SCB US$ 10 136 — — PT Bank ANZ Indonesia ("ANZ") Rp — 5 — — US$ 5 73 — — Others Rp — 30 — 52 MYR 14 47 11 39 Sub-total 4,818 1,907 Total time deposits 20,603 13,113 Provision for impairment of cash and cash equivalent — (4) Total 25,145 17,435 |
Schedule of interest rates on time deposits | 2017 2018 Rupiah 2.85%‑8.50% 2.60%‑9.25% Foreign currencies 0.40%‑3.50% 0.50%‑3.75% |
OTHER CURRENT FINANCIAL ASSETS
OTHER CURRENT FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER CURRENT FINANCIAL ASSETS | |
Schedule of breakdown of other current financial assets | 2017 2018 Balance Balance Original currency Original currency Currency (in millions) Rupiah equivalent (in millions) Rupiah equivalent Time deposits Related parties BNI Rp — — — 1 BRI Rp — 2 — — Third parties SCB US$ 8 109 8 116 UOB US$ 14 191 3 45 HSBC US$ — — 3 43 Others Rp — 23 — — Total time deposits 325 205 Available-for-sale financial assets Related parties PT Mandiri Manajemen Investasi Rp — 711 — 379 PT Bahana TCW Investment Management (”Bahana TCW”) Rp — 360 — 91 Others Rp — 97 — — Total available-for-sale financial assets 1,168 470 Escrow accounts Rp — 318 — 136 US$ 6 78 0 1 MYR 5 15 5 16 Others Rp — 263 — 486 US$ 0 6 — — MYR 0 0 — — AUD 0 0 — — Total 2,173 1,314 |
Schedule of interest rates on time deposits | 2017 2018 Rupiah 6.00%‑7.00% 5.00% Foreign currency 1.38%‑1.64% 1.35%‑2.18% |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER RECEIVABLES | |
Schedule of trade and other receivables | 2017 2018 Trade receivables 13,553 14,844 Provision for impairment of receivables (4,331) (5,543) Net 9,222 9,301 Other receivables 346 782 Provision for impairment of receivables (4) (155) Net 342 627 Total trade and other receivables 9,564 9,928 |
Schedule of trade receivables by debtor | (i) Related parties 2017 2018 State-owned enterprises 721 1,495 Government agencies 519 672 Indonusa 465 522 PT Indosat Tbk (“Indosat”) 219 Others 670 467 Total 2,747 3,375 Provision for impairment of receivables (883) (1,361) Net 1,864 2,014 (ii) Third parties 2017 2018 Individual and business subscribers 9,289 10,674 Overseas international carriers 1,517 795 Total 10,806 11,469 Provision for impairment of receivables (3,448) (4,182) Net 7,358 7,287 |
Schedule of trade receivables by age | (i) Related parties 2017 2018 Up to 3 months 1,721 2,090 3 to 6 months 107 397 More than 6 months 919 888 Total 2,747 3,375 Provision for impairment of receivables (883) (1,361) Net 1,864 2,014 (ii) Third parties 2017 2018 Up to 3 months 6,493 6,066 3 to 6 months 681 1,401 More than 6 months 3,632 4,002 Total 10,806 11,469 Provision for impairment of receivables (3,448) (4,182) Net 7,358 7,287 (iii) Aging of total trade receivables 2017 2018 Provision for Provision for impairment impairment Gross of receivables Gross of receivables Not past due 6,788 920 5,912 479 Past due up to 3 months 1,426 281 2,244 377 Past due more than 3 to 6 months 788 258 1,798 368 Past due more than 6 months 4,551 2,872 4,890 4,319 Total 13,553 4,331 14,844 5,543 |
Schedule of credit risk exposure on trade receivables | Days past due Past due Past due Not Past due up more than more than Ending past due to 3 months 3 to 6 months 6 months balance Expected credit loss rate 8.1 % 16.8 % 20.5 % 88.3 % Estimated total gross carrying amount at default 5,912 2,244 1,798 4,890 14,844 Expected credit loss 479 377 368 4,319 5,543 |
Schedule of trade receivable by currency | (i) Related parties 2017 2018 Rupiah 2,706 3,368 U.S. dollar 41 7 Others 0 0 Total 2,747 3,375 Provision for impairment of receivables (883) (1,361) Net 1,864 2,014 (ii) Third parties 2017 2018 Rupiah 9,781 9,977 U.S. dollar 968 1,372 Malaysian ringgit 16 82 Others 41 38 Total 10,806 11,469 Provision for impairment of receivables (3,448) (4,182) Net 7,358 7,287 |
Schedule of movements in provision for impairment of trade receivables | 2017 2018 Beginning balance 2,990 4,331 Adjustment on initial application of IFRS 9 — 159 Provision for impairment of receivables 1,494 2,079 Receivables written off (153) (1,026) Ending balance 4,331 5,543 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
Schedule of inventories | 2017 2018 Components 447 429 SIM cards and blank prepaid vouchers 168 137 Others 69 218 Total 684 784 Provision for obsolescence Components (24) (38) SIM cards and blank prepaid vouchers (29) (28) Others (1) Total (53) (67) Net 631 717 |
Schedule of movements in the provision for obsolescence | 2017 2018 Beginning balance 47 53 Provision recognised during the year 6 22 Inventory written off — (8) Ending balance 53 67 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER CURRENT ASSETS | |
Schedule breakdown of other current assets | 2017 2018 Frequency license (Note 35c.i) 3,760 3,636 Advances 1,156 1,803 Prepaid rental 1,349 1,382 Prepaid salaries 227 200 Advance to employee 35 30 Others 656 229 Total 7,183 7,280 |
CONTRACT COSTS (Tables)
CONTRACT COSTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CONTRACT COSTS | |
Schedule of movement of contract costs | 2018 Cost to obtain Cost to fulfill Total At January 1, 2018 193 903 Amortisation during the year (62) (1,094) (1,156) Addition current year 274 1,030 At December 31, 2018 405 839 Short term portion (85) (839) (924) Long term portion 320 — |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
LONG-TERM INVESTMENTS | |
Schedule of long-term investments | 2017 Share of other Percentage of Beginning Additions Share of net comprehensive ownership balance (deductions) profit (loss) Dividend income Ending balance Long-term investments in associated companies: Tiphone a 24.00 1,488 — 80 (28) (1) 1,539 Indonusa b 20.00 221 — — — — 221 Teltranet c 51.00 38 — (20) — — 18 PT Integrasi Logistic Cipta Solusi ("ILCS") d 49.00 42 — 1 — — 43 PT Graha Sakura Nusantara ("GSN") e 45.00 — 14 0 — — 14 Others g 25.00 - 49.00 — 4 — 4 Sub-total 1,789 18 61 (28) (1) 1,839 Other long-term investments 58 251 — — 0 309 Total long-term investments 1,847 269 61 (28) (1) 2,148 The details of long-term investments as of December 31, 2018 are as follows: Adjustment on initial Share of other Percentage of Beginning application of Additions Changes of Share of net comprehensive ownership balance IFRS 9 (deductions) fair value-net profit (loss) Dividend income Ending balance Long-term investments in associated companies : Tiphone a 24.00 1,539 — — — 87 (9) (15) 1,602 Indonusa b 20.00 221 — — — (11) — — 210 Teltranet c 51.00 18 — — — (19) — 1 0 ILCS d 49.00 43 — — — 1 0 0 44 GSN e 45.00 14 — — — 0 — — 14 Others f 25.00-32.00 4 — 84 — (5) 0 0 83 Sub-total 1,839 — 84 — 53 (9) (14) 1,953 Other long-term Investments 309 69 253 78 — — — 709 Total long-term Invesment 2,148 69 337 78 53 (9) (14) 2,662 a Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as 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, 2017 and 2018, the fair value of the investment amounted to Rp1,755 billion and Rp1,649 billion, respectively. The fair value was calculated by multiplying the number of shares by the published price quotation as of December 31, 2017 and 2018 amounting to Rp1,000 and Rp940 per share, respectively. Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of December 31, 2017 and 2018 is as follows: 2017 2018 Assets 9,078 8,507 Liabilities (5,362) (4,528) Net assets 3,716 3,979 Group’s proportionate share of net assets (24.00% in 2017 and 2018) 892 955 Goodwill 647 647 Carrying amount of long-term investment 1,539 1,602 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 Isbandi, S.H., which was approved by the MoLHR in 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 waived its right to own the new shares issued and transferred it to Metra, as the result, Metra’s ownership in Indonusa increased to 4.33% and the Company’s ownership become 15.67%. c 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 to determine the financial and operating policies of Teltranet. The unrecognized share of losses in Teltranet for the year ended December 31, 2018 are Rp11 billion. d ILCS is engaged in providing E-trade logistic services and other related services. e On August 31, 2017, NSI and third party established GSN which engaged in real estate, residential and apartment marketing business. f The unrecognized share of losses in other investments cumulatively as of December 31, 2018 are Rp263 billion. |
Schedule of summarized financial information of the Group’s investments accounted for under the equity method | Summarized financial information of the Group’s investments accounted for under the equity method for 2017: Tiphone Indonusa Teltranet ILCS GSN Others Statements of financial position Current assets 8,084 307 174 145 1 190 Non-current assets 994 415 101 32 185 606 Current liabilities (2,107) (877) (149) (87) (27) (724) Non-current liabilities (3,255) (177) (90) (2) (129) (1,882) Equity (deficit) 3,716 (332) 36 88 30 (1,810) Statements of profit or loss and other comprehensive income Revenues 27,914 692 209 122 — 106 Operating expenses (27,217) (333) (255) (116) (287) Other expenses - net (246) (364) (5) (4) — (19) Profit (loss) before tax 451 (5) (51) 2 0 (200) Income tax benefit (expense) (116) — 13 1 — — Profit (loss) for the year 335 (5) (38) 3 0 (200) Other comprehensive income (loss) (3) — — — Total comprehensive income (loss) for the year 332 (5) (38) 3 0 (200) Summarized financial information of the Group’s investments accounted for under the equity method for 2018: Tiphone Indonusa Teltranet ILCS GSN Others Statements of financial position Current assets 7,615 449 269 132 15 223 Non-current assets 892 310 116 47 169 644 Current liabilities (1,466) (572) (269) (87) (1) (687) Non-current liabilities (3,062) (297) (138) (2) (152) (1,883) Equity (deficit) 3,979 (110) (22) 90 31 (1,703) Statements of profit or loss and other comprehensive income Revenues 29,228 824 206 164 5 117 Operating expenses (28,337) (583) (264) (162) (5) (279) Other income (expenses) including finance costs - net (391) (39) (13) 1 0 (43) Profit (loss) before tax 500 202 (71) 3 0 (205) Income tax benefit (expense) (138) (55) 12 (1) — (1) Profit (loss) for the year 362 147 (59) 2 0 (206) Other comprehensive income (loss) (63) (2) 1 — — — Total comprehensive income (loss) for the year 299 145 (58) 2 0 (206) |
Tiphone | |
LONG-TERM INVESTMENTS | |
Schedule of reconciliation of financial information to the carrying amount of long-term investment in Tiphone | 2017 2018 Assets 9,078 8,507 Liabilities (5,362) (4,528) Net assets 3,716 3,979 Group’s proportionate share of net assets (24.00% in 2017 and 2018) 892 955 Goodwill 647 647 Carrying amount of long-term investment 1,539 1,602 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Schedule of property and equipment | December 31, Business Reclassifications/ December 31, 2016 acquisitions Additions Deductions Translations 2017 At cost : Land rights 1,417 40 62 — — 1,519 Buildings 7,837 39 211 (3) 1,718 9,802 Leasehold improvements 1,116 — 34 (25) 132 1,257 Switching equipment 20,539 69 556 (977) (1,675) 18,512 Telegraph, telex and data communication equipment 1,586 — — — (3) 1,583 Transmission installation and equipment 126,908 — 2,648 (4,489) 14,314 139,381 Satellite, earth station and equipment 8,445 573 1,233 (2,202) 1,251 9,300 Cable network 44,990 — 5,715 (694) (2,657) 47,354 Power supply 15,237 — 222 (456) 1,491 16,494 Data processing equipment 12,599 — 715 (603) 666 13,377 Other telecommunication peripherals 702 — 966 (7) — 1,661 Office equipment 1,529 11 327 (84) (146) 1,637 Vehicles 522 — 355 (37) — 840 CPE assets 22 — — — — 22 Other equipment 100 — — — (3) 97 Property under construction 4,550 — 20,110 (96) (20,149) 4,415 Total 248,099 732 33,154 (9,673) (5,061) 267,251 December 31, Reclassifications/ December 31, 2016 Additions Deductions Translations 2017 Accumulated depreciation and impairment losses: Land rights 268 31 — — 299 Buildings 2,435 407 — 38 2,880 Leasehold improvements 692 149 (23) 5 823 Switching equipment 16,690 1,393 (977) (2,511) 14,595 Telegraph, telex and data communication equipment 333 416 — 53 802 Transmission installation and equipment 64,365 11,213 (3,642) (55) 71,881 Satellite, earth station and equipment 7,098 595 (2,202) (1,157) 4,334 Cable network 20,494 2,003 (693) (3,752) 18,052 Power supply 10,262 1,296 (286) 2 11,274 Data processing equipment 9,512 1,401 (582) (19) 10,312 Other telecommunication peripherals 462 149 (7) (1) 603 Office equipment 940 215 (65) 26 1,116 Vehicles 200 113 (21) — 292 CPE assets 19 1 — — 20 Other equipment 99 1 — (4) 96 Total 133,869 19,383 (8,498) (7,375) 137,379 Net book value 114,230 129,872 December 31, Business Reclassifications/ December 31, 2017 acquisitions Additions Deductions Translations 2018 At cost : Land rights 1,519 46 39 — 22 1,626 Buildings 9,802 43 67 (1) 1,922 11,833 Leasehold improvements 1,257 — 23 (24) 119 1,375 Switching equipment 18,512 — 818 (1,920) (2,070) 15,340 Telegraph, telex and data communication equipment 1,583 — 3 — — 1,586 Transmission installation and equipment 139,381 — 3,287 (6,398) 10,743 147,013 Satellite, earth station and equipment 9,300 — 2,414 (3) 261 11,972 Cable network 47,354 — 5,887 (36) (7,555) 45,650 Power supply 16,494 13 484 (277) 1,275 17,989 Data processing equipment 13,377 23 140 (622) 1,348 14,266 Other telecommunication peripherals 1,661 — 1,765 — (1) 3,425 Office equipment 1,637 46 475 (86) 86 2,158 Vehicles 840 6 379 (1) (5) 1,219 CPE assets 22 — — — — 22 Other equipment 97 — 18 — (21) 94 Property under construction 4,415 2 17,821 (23) (17,339) 4,876 Total 267,251 179 33,620 (9,391) (11,215) 280,444 December 31, Reclassifications/ December 31, 2017 Additions Deductions Translations 2018 Accumulated depreciation and impairment losses: Land rights 299 36 — — 335 Buildings 2,880 513 (1) 13 3,405 Leasehold improvements 823 150 (24) — 949 Switching equipment 14,595 1,309 (1,920) (3,390) 10,594 Telegraph, telex and data communication equipment 802 518 — — 1,320 Transmission installation and equipment 71,881 11,561 (5,579) (372) 77,491 Satellite, earth station and equipment 4,334 677 (3) (3) 5,005 Cable network 18,052 2,084 (36) (7,718) 12,382 Power supply 11,274 1,375 (267) 7 12,389 Data processing equipment 10,312 1,047 (601) (10) 10,748 Other telecommunication peripherals 603 428 — (1) 1,030 Office equipment 1,116 334 (72) 4 1,382 Vehicles 292 122 (1) (6) 407 CPE assets 20 — — — 20 Other equipment 96 4 — (25) 75 Total 137,379 20,158 (8,504) (11,501) 137,532 Net book value 129,872 142,912 |
Schedule of gain on disposal or sale of property and equipment | 2016 2017 2018 Proceeds from sale of property and equipment 765 1,367 629 Net book value (152) (1,009) (1) Gain on sale of property and equipment 613 358 628 |
Schedule of future minimum lease payments | Years 2017 2018 2018 1,083 — 2019 969 1,049 2020 866 945 2021 778 781 2022 605 605 2023 254 254 Thereafter 130 130 Total minimum lease payments 4,685 3,764 Interest (881) (619) Net present value of minimum lease payments 3,804 3,145 Current maturities (Note 18b) (794) (807) Long-term portion (Note 19) 3,010 2,338 |
Schedule of obligations under finance leases | 2017 2018 PT Tower Bersama Infrastructure Tbk. 1,293 1,089 PT Profesional Telekomunikasi Indonesia 1,120 930 PT Mandiri Utama Finance 198 186 PT Solusi Tunas Pratama 212 181 PT Putra Arga Binangun 189 159 PT Mitsubishi UFJ Lease and Finance Indonesia 135 103 PT Bali Towerindo Sentra 100 86 Others (each below Rp75 billion) 557 411 Total 3,804 3,145 |
Radio software license | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Summary of changes in estimated useful lives | Years Increase (Decrease) 2019 2020 2021 2022 (106) |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other non-current assets | 2017 2018 Prepaid other taxes - net of current portion (Note 30) 3,075 2,698 Prepaid rental - net of current portion (Note 9) 2,688 2,662 Frequency license - net of current portion (Note 9) 2,019 1,743 Prepaid income taxes - net of current portion (Note 30) 763 894 Deferred charges 413 474 Advances for purchases of property and equipment 2,805 387 Convertible bonds 64 213 Restricted cash 31 183 Security deposit 116 173 Others 296 227 Total 12,270 9,654 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets | The details of intangible assets are as follows: Other intangible Goodwill Software License assets Total Gross carrying amount: Balance, December 31, 2016 449 7,222 75 607 8,353 Additions — 1,289 3 21 1,313 Acquisition 232 4 — — 236 Deductions (3) (122) — (11) (136) Reclassifications/translations 2 (6) 6 18 20 Balance, December 31, 2017 680 8,387 84 635 9,786 Accumulated amortization and impairment losses: Balance, December 31, 2016 (21) (4,776) (56) (411) (5,264) Amortization — (1,037) (9) (48) (1,094) Deductions — 95 — 11 106 Reclassifications/translations — 4 (6) (2) (4) Balance, December 31, 2017 (21) (5,714) (71) (450) (6,256) Net 659 2,673 13 185 3,530 Other intangible Goodwill Software License assets Total Gross carrying amount: Balance, December 31, 2017 680 8,387 84 635 9,786 Additions — 2,328 14 19 2,361 Acquisition 422 1 2 — 425 Deductions — (51) (11) — (62) Reclassifications/translations (36) 15 5 33 17 Balance, December 31, 2018 1,066 10,680 94 687 12,527 Accumulated amortization and impairment losses: Balance, December 31, 2017 (21) (5,714) (71) (450) (6,256) Amortization — (1,226) (9) (49) (1,284) Deductions — 51 4 — 55 Reclassifications/translations — (7) (5) 2 (10) Balance, December 31, 2018 (21) (6,896) (81) (497) (7,495) Net 1,045 3,784 13 190 5,032 (i) Goodwill resulted from the acquisition of Sigma (2008), Ad Medika (2010), PT Bina Data Mandiri (2012), Contact Centres Australia Pty. Ltd. (2014), PT Media Nusantara Data Global (2015), Melon (2016), PT Griya Silkindo Drajatmoerni (2016), TSGN (2017), Nutech (2017), Swadharma (2018), CIP (2018) and Telin Malaysia (2018) (Note 1d). (ii) The amortization is presented as part of “Depreciation and Amortization” in the consolidated statements of profit or loss and other comprehensive income. The remaining amortization periods of software range from 1 to 5 years. (iii) As of December 31, 2018, the cost of fully amortized intangible assets that are still used in operations amounted to Rp4,463 billion. |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER PAYABLES | |
Schedule of trade and other payables | 2017 2018 Trade payables 15,574 14,766 Other payables 217 448 Total trade and other payables 15,791 15,214 |
Schedule of trade payables | 2017 2018 Related parties Radio frequency usage charges, concession fees and Universal Service Obligation (“USO”) charges 1,561 1,471 Purchases of equipments, materials and services 577 829 Payables to other telecommunication providers 322 189 Sub-total 2,460 2,489 Third parties Purchases of equipments, materials and services 11,659 10,849 Payables to other telecommunication providers 1,455 1,428 Sub-total 13,114 12,277 Total 15,574 14,766 |
Schedule of trade payables by currency | 2017 2018 Rupiah 13,344 11,726 U.S. dollar 2,167 2,978 Others 63 62 Total 15,574 14,766 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACCRUED EXPENSES | |
Schedule of accrued expenses | 2017 2018 Operation, maintenance and telecommunication services 7,093 8,013 General, administrative and marketing expenses 2,684 2,299 Salaries and benefits 2,664 2,219 Interest and bank charges 189 238 Total 12,630 12,769 |
CONTRACT LIABILITIES (Tables)
CONTRACT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CONTRACT LIABILITIES | |
Schedule of breakdown of contract liabilities, current | 2017 2018 Prepaid pulse reload vouchers 4,800 4,413 Material rights for contract renewal 44 65 Others 583 774 Total 5,427 5,252 |
Schedule of breakdown of contract liabilities, non-current | 2017 2018 IRU 205 258 Material rights for contract renewal 305 394 Others 14 — Total 524 652 |
SHORT-TERM BANK LOANS AND CUR_2
SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS | |
Schedule of short-term bank loans and current maturities of long-term borrowings | 2017 2018 Short-term bank loans 2,289 4,043 Current maturities of long-term borrowings 5,209 6,296 Total 7,498 10,339 |
Schedule of short-term bank loans | 2017 2018 Outstanding Outstanding Original Original currency Rupiah currency Rupiah Lenders Currency (in millions) equivalent (in millions) equivalent Related parties BNI Rp — 1,252 — 956 Bank Mandiri Rp — 45 — — Sub-total 1,297 956 Third parties MUFG Bank, Ltd. ("MUFG Bank") Rp — — — 1,295 DBS Rp — 408 — 699 US$ — — 1 13 UOB Rp — 400 — 580 HSBC Rp — 18 — 317 US$ — — 0 4 SCB Rp — — — 100 Bank CIMB Niaga Rp — 83 — 78 PT Bank Sumitomo Mitsui Indonesia ("Sumitomo") Rp — 80 — — Others Rp — 3 — 1 Sub-total 992 3,087 Total 2,289 4,043 |
Schedule of short-term bank loans, other significant information | Total facility Interest Interest rate Borrower Currency (in billions)* Maturity date payment period per annum Security BNI 2014 - 2017 GSD e , Sigma a Rp 375 January 9, 2019 - Monthly Trade receivables (Note 6) and property and equipment (Note 12) 2013 - 2018 Telkom Infratel, Infomedia f , MD Media, Sigma e Rp 2,895 January 9, 2019 - Monthly 1 month Trade receivables (Note 6) MUFG Bank 2018 Telkomsel, Infomedia, Metra, TII Rp 2,350 March 27, 2019 - Monthly, 1 month JIBOR + 0.70% - 0.95%, None DBS 2018 Telkom Infratel, Infomedia Rp 600 February 26, 2019 Monthly 1 month JIBOR + 0.70% None 2016 Nutech e Rp 17 October 13, 2019 Monthly 10.50% - 11.00% None 2016 Sigma b,c US$ 0.02 July 31, 2019 Semi-annually 3.25% (US$), 10.75% (Rp) Trade receivables (Note 6) UOB 2016 - 2018 MD Media, Finnet d Rp 800 April 6, 2019 - Monthly 1 month JIBOR + 2.00% Trade receivables (Note 6) HSBC 2014 Sigma g Rp 600 July 15, 2019 Monthly 14.34% Trade receivables (Note 6) 2014 Sigma g US$ 0.004 July 15, 2019 Monthly Trade receivables (Note 6) 2018 PINS Rp 300 June 28, 2019 Quarterly 3 months JIBOR + 1.00% None SCB 2015 GSD e Rp 100 March 28, 2019 Monthly None Bank CIMB Niaga 2013 GSD e Rp 85 January 1, 2019 Monthly 10.90% - 11.50% Trade receivables (Note 6) and property and equipment (Note 12) * In original currency. a Based on the latest amendment on December 21, 2017. b Based on the latest amendment on December 5, 2018 c Facility in U.S. Dollar. Withdrawal can be executed in U.S. Dollar and Rupiah. d Based on the latest amendment on June 5, 2018. e Unsettled loan will be automatically extended. f Based on the latest amendment on March 28, 2018 and July 6, 2018. g Based on the latest amendment on July 16, 2018. |
Schedule of current maturities of long-term borrowings | Notes 2017 2018 Two-step loans 19a 206 198 Bonds and notes 19b — 525 Bank loans 19c 4,110 4,472 Other borrowings 19d 99 294 Obligations under finance leases 12c.xii 794 807 Total 5,209 6,296 |
LONG-TERM LOANS AND OTHER BOR_2
LONG-TERM LOANS AND OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings | Notes 2017 2018 Two-step loans 19a 892 751 Bonds and notes 19b 8,982 9,956 Bank loans 19c 13,894 18,748 Other borrowings 19d 1,196 1,950 Obligations under finance leases 12c.xii 3,010 2,338 Total 27,974 33,743 |
Schedule of principal payments | Year Notes Total 2020 2021 2022 2023 Thereafter Two-step loans 19a 751 198 181 144 127 101 Bonds and notes 19b 9,956 2,490 477 2,197 — 4,792 Bank loans 19c 18,748 7,648 3,051 2,577 2,813 2,659 Other borrowings 19d 1,950 404 405 405 415 321 Obligations under finance leases 12c.xii 2,338 768 670 549 233 118 Total 33,743 11,508 4,784 5,872 3,588 7,991 |
Two-step loans | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings | 2017 2018 Outstanding Outstanding Original currency Rupiah Original currency Rupiah Lenders Currency (in millions) equivalent (in millions) equivalent Overseas banks Yen 5,375 648 4,607 602 US$ 17 237 13 188 Rp — 213 — 159 Total 1,098 949 Current maturities (Note 18b) (206) (198) Long-term portion 892 751 |
Schedule of long-term loans and other borrowings, other significant information | Principal payment Interest payment Interest rate per Lenders Currency schedule period annum Overseas banks Yen Semi-annually Semi-annually 2.95 % US$ Semi-annually Semi-annually 3.85 % Rp Semi-annually Semi-annually 7.50 % |
Bonds and notes | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings | 2017 2018 Outstanding Outstanding Original currency Rupiah Original currency Rupiah Bonds and notes Currency (in millions) equivalent (in millions) equivalent Bonds 2010 Series B Rp — 1,995 — 1,995 2015 Series A Rp — 2,200 — 2,200 Series B Rp — 2,100 — 2,100 Series C Rp — 1,200 — 1,200 Series D Rp — 1,500 — 1,500 Medium Term Notes (“MTN”) MTN I Telkom 2018 Series A Rp — — — 262 Series B Rp — — — 200 Series C Rp — — — 296 MTN Syariah Ijarah I Telkom 2018 Series A Rp — — — 264 Series B Rp — — — 296 Series C Rp — — — 182 Total 8,995 10,495 Unamortized debt issuance cost (13) (14) Total 8,982 10,481 Current maturities (Note 18b) — (525) Long-term portion 8,982 9,956 |
2010 - Series B Bonds | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings, other significant information | Interest payment Interest rate per Bonds Principal Issuer Listed on Issuance date Maturity date period annum Series B 1,995 The Company IDX June 25, 2010 July 6, 2020 Quarterly 10.20 % |
2015 Bonds | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings, other significant information | Interest payment Interest rate Bonds Principal Issuer Listed on Issuance date Maturity date period per annum Series A 2,200 The Company IDX June 23, 2015 June 23, 2022 Quarterly 9.93 % Series B 2,100 The Company IDX June 23, 2015 June 23, 2025 Quarterly 10.25 % Series C 1,200 The Company IDX June 23, 2015 June 23, 2030 Quarterly 10.60 % Series D 1,500 The Company IDX June 23, 2015 June 23, 2045 Quarterly 11.00 % Total 7,000 |
MTN I Telkom 2018 | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings, other significant information | Interest payment Interest rate Notes Currency Principal Issuance date Maturity date period per annum Security Series A Rp 262 September 4, 2018 September 14, 2019 Quarterly 7.25 % All assets Series B Rp 200 September 4, 2018 September 4, 2020 Quarterly 8.00 % All assets Series C Rp 296 September 4, 2018 September 4, 2021 Quarterly 8.35 % All assets 758 |
MTN - Syariah Ijarah I Telkom 2018 | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings, other significant information | Annual Maturity Return return Notes Currency Principal Issuance date date period payment Security Series A Rp 264 September 4, 2018 September 14, 2019 Quarterly The Right to benefit of ijarah objects Series B Rp 296 September 4, 2018 September 4, 2020 Quarterly The Right to benefit of ijarah objects Series C Rp 182 September 4, 2018 September 4, 2021 Quarterly The Right to benefit of ijarah objects 742 |
Bank loans | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings | 2017 2018 Outstanding Outstanding Original Original currency Rupiah currency Rupiah Lenders Currency (in millions) equivalent (in millions) equivalent Related parties BNI Rp — 4,603 — 6,826 Bank Mandiri Rp — 1,126 — 4,546 BRI Rp — 2,166 — 1,248 Sub-total 7,895 12,620 Third parties MUFG Bank Rp — 1,944 — 3,011 US$ — — 10 144 Syndication of banks Rp — 2,250 — 1,750 US$ — — 37 532 Citibank Rp — — — 1,000 PT Bank Central Asia Tbk (“BCA”) Rp — 1,100 — 740 UOB Singapore US$ 49 664 49 710 Sumitomo Rp — 804 — 661 Bank CIMB Niaga Rp — 1,726 — 462 ANZ Rp — 440 — 440 UOB Rp — 500 — 428 DBS Rp — 144 — 379 PT Bank ICBC Indonesia ("ICBC") Rp — 249 — 204 Exim Bank of Malaysia Berhad MYR 37 124 23 81 Japan Bank for International Cooperation (“JBIC”) US$ 9 128 3 45 Others Rp — 26 — 33 MYR 15 50 13 46 Sub-total 10,149 10,666 Total 18,044 23,286 Unamortized debt issuance cost (40) (61) Gain on debt restructuring — (5) 18,004 23,220 Current maturities (Note 18b) (4,110) (4,472) Long-term portion 13,894 18,748 |
Schedule of long-term loans and other borrowings, other significant information | Current Total period Principal Interest facility payment payment payment Interest rate Borrower Currency (in billions)* (in billions)* schedule period per annum Security BNI 2018 GSD Rp 182 8 2018 - 2021 Monthly Trade receivables (Note 6) 2013 - 2018 The Company, Telkomsel a , GSD, TLT, Sigma, Dayamitra, Telkom Infratel, Telkom Akses Rp 9,892 671 2016 - 2033 Monthly, 1 month JIBOR + 2.20% - 3.00%, Trade receivables (Note 6), Inventory (Note 8) and Property and equipment (Note 12) Bank Mandiri 2016 - 2018 The Company, Telkomsel a,c , Balebat, Telkomsat Rp 8,750 4,035 2017 - 2024 Monthly, 8.50%, 8.75%, Trade receivables (Note 6), Inventory (Note 8) and Property and equipment (Note 12) 2017 GSD, TII, Dayamitra Rp 845 — 2019 - 2024 Quarterly 3 months JIBOR + 1.85% None BRI 2013 GSD Rp 103 17 2014 - 2021 Monthly Trade receivables (Note 6), Property and equipment (Note 12) and lease agreement 2017 - 2018 The Company, Dayamitra Rp 1,200 — 2019 - 2025 Quarterly 3 months JIBOR + 1.85% None MUFG Bank 2015 - 2018 GSD, Metra, Infomedia, Dayamitra Rp 3,950 194 2016 - 2025 Quarterly 3 months JIBOR + 1.43% - 2.25% Property and equipment (Note 12) and lease agreement 2018 TII US$ 0.01 — 2019 - 2023 Quarterly 3 months LIBOR + 1.25% None Syndication of Banks 2015 The Company, GSD Rp 3,000 500 2016 - 2022 Quarterly 3 months JIBOR + 2.00% All Assets 2018 TII US$ 0.09 — 2020 - 2024 Semi-annually 6 months LIBOR + 1.25% None Citibank 2018 The Company Rp 1,000 — 2019 - 2020 Quarterly None Current Total period Principal Interest facility payment payment payment Borrower Currency (in billions)* (in billions)* schedule period Interest rate per annum Security BCA 2017 - 2018 Metra, Dayamitra, Telkom Infratel Rp 870 21 2018 - 2025 Quarterly 3 months JIBOR + 1.50% - 1.85% Property and equipment (Note 12) UOB Singapore 2016 TII US$ 0.06 — 2019 - 2024 Monthly 1 month LIBOR + 1.25% None Sumitomo 2015 - 2017 GSD, Metra, Infomedia, Dayamitra Rp 1,150 194 2016 - 2022 Quarterly 3 months JIBOR + 1.50% - 2.15% None Bank CIMB Niaga 2011 GSD Rp 78 8 2011 - 2021 Monthly Property and equipment (Note 12) and lease agreement 2017 GSD, Metra Rp 495 28 2018 - 2023 Quarterly 3 months JIBOR + 1.50% None ANZ 2015 – 2017 GSD, PINS Rp 750 — 2020 - 2022 Quarterly 3 months JIBOR + 2.00% Property and equipment (Note 12) UOB 2016 Dayamitra Rp 500 71 2018 - 2024 Quarterly 3 months JIBOR + 2.20% Property and equipment (Note 12) DBS 2016 - 2017 Nutech, Telkomsat Rp 136 17 2017 - 2022 Monthly, 9.17%, 11.00% Trade receivables (Note 6) and Property and equipment (Note 12) 2017 PINS, Dayamitra Rp 400 38 2018 - 2022 Quarterly 3 months JIBOR + 1.50% None ICBC 2017 GSD Rp 272 45 2017 - 2023 Quarterly 3 months JIBOR + 2.36% Trade receivables (Note 6) and Property and equipment (Note 12) Exim Bank of Malaysia Berhard 2016 TII MYR 0.06 0.014 2017 - 2020 Monthly ECOF + 1.89% None JBIC b 2013 The Company US$ 0.03 0.004 2014 - 2019 Semi-annually None 2013 The Company US$ 0.03 0.003 2014 - 2019 Semi-annually 6 months LIBOR + 1.20% None * In original currency a 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, 2018 Telkomsel has complied with the above covenants. b 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. c Based on the latest amendment on December 11, 2018. |
Other borrowings | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings | Outstanding Lenders Currency 2017 2018 PT Sarana Multi Infrastruktur Rp 1,300 Unamortized debt issuance cost (5) (6) Total 1,295 Current maturities (Note 18b) (99) (294) Long-term portion 1,196 |
Dayamitra | PT Sarana Multi Infrastruktur | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings, other significant information | Current Total period Principal facility payment payment Interest rate Borrower Currency (in billions) (in billions) schedule per annum Security PT Sarana Multi Infrastruktur October 12, 2016 Dayamitra Rp 700 50 Semi-annually 3 months JIBOR+1.85% Property and equipment (Note 12) March 29, 2017 Dayamitra Rp 600 — Semi-annually 3 months JIBOR+1.85% Property and equipment (Note 12) |
The company | PT Sarana Multi Infrastruktur | |
Borrowings and other credit facilities | |
Schedule of long-term loans and other borrowings, other significant information | Current period Principal Total facility payment payment Interest rate Borrower Currency (in billions) (in billions) schedule per annum Security PT Sarana Multi Infrastruktur November 14, 2018 The Company Rp 1,000 — Semi-annually (2019-2023) 8.35 % None |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interests | |
Schedule of information about non-controlling interests | 2017 2018 Non-controlling interests in net assets of subsidiaries: Telkomsel 18,891 17,770 GSD 186 212 Metra 115 174 TII 172 111 Total 19,364 18,267 2016 2017 2018 Non-controlling interests in net income (loss) of subsidiaries: Telkomsel 9,863 10,632 8,899 Metra (39) (83) 11 TII (3) 6 7 GSD (5) (5) (8) Total 9,816 10,550 8,909 |
Telkomsel | |
Noncontrolling Interests | |
Schedule of summarized statements of financial position of subsidiaries | 2017 2018 Current assets 21,098 20,089 Non-current assets 64,499 62,130 Current liabilities (23,031) (20,775) Non-current liabilities (8,587) (10,667) Total equity 53,979 50,777 Attributable to: Equity holders of parent company 35,088 33,007 Non-controlling interest 18,891 17,770 |
Schedule of summarized statements of profit or loss and other comprehensive income of subsidiaries | 2016 2017 2018 Revenues 86,725 93,217 89,258 Operating expenses (49,765) (53,198) (55,408) Other income – net 483 380 124 Profit before income tax 37,443 40,399 33,974 Income tax expense – net (9,263) (10,018) (8,546) Profit for the year from continuing operations 28,180 30,381 25,428 Other comprehensive income net (222) (392) 356 Net comprehensive income for the year 27,958 29,989 25,784 Profit for the year attributable to non-controlling interest 9,863 10,632 8,899 Dividend paid to non-controlling interest 7,036 12,334 10,105 |
Schedule of summarized statements of cash flows of subsidiaries | 2016 2017 2018 Operating activities 42,827 39,564 36,848 Investing activities (12,794) (13,984) (16,095) Financing activities (24,132) (34,720) (24,867) Net (decrease) increase in cash and cash equivalents 5,901 (9,140) (4,114) |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CAPITAL STOCK. | |
Schedule of details of capital stock | 2017 Percentage of Total paid-in Description Number of shares ownership capital Series A Dwiwarna share Government 1 0 0 Series B shares Government 51,602,353,560 52.09 2,580 The Bank of New York Mellon Corporation* 6,078,374,280 6.14 304 Commissioners (Note 1b): Hendri Saparini 414,157 0 0 Hadiyanto 875,297 0 0 Rinaldi Firmansyah 147,100 0 0 Directors (Note 1b): Alex Janangkih Sinaga 920,349 0 0 Herdy Rosadi Harman 828,012 0 0 Abdus Somad Arief 828,314 0 0 Dian Rachmawan 888,854 0 0 Public (individually less than 5%) 41,376,586,676 41.77 2,069 Total 99,062,216,600 100.00 4,953 Treasury stock (Note 23) 1,737,779,800 0 87 Total 100,799,996,400 100.00 5,040 2018 Percentage of Total paid-in Description Number of shares ownership capital Series A Dwiwarna share Government 1 0 0 Series B shares Government 51,602,353,560 52.09 2,580 The Bank of New York Mellon Corporation* 4,944,921,880 4.99 247 Commissioners (Note 1b): Hendri Saparini 654,505 0 0 Rinaldi Firmansyah 454,113 0 0 Directors (Note 1b): Alex Janangkih Sinaga 1,683,359 0 0 Herdy Rosadi Harman 1,514,720 0 0 Abdus Somad Arief 1,515,022 0 0 Dian Rachmawan 1,575,562 0 0 Harry Mozarta Zen 689,492 0 0 David Bangun 1,000 0 0 Siti Choiriana 540 0 0 Public (individually less than 5%) 42,506,852,846 42.92 2,126 Total 99,062,216,600 100.00 4,953 * The Bank of New York Mellon Corporation serves as the Depositary of the registered ADS holders for the Company’s ADSs. |
ADDITIONAL PAID-IN CAPITAL (Tab
ADDITIONAL PAID-IN CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ADDITIONAL PAID-IN CAPITAL. | |
Schedule of additional paid-in capital | 2017 2018 Proceeds from sale of 933,333,000 shares in excess of par value through IPO in 1995 1,446 1,446 Excess of value over cost of selling 211,290,500 shares under the treasury stock plan phase I (Note 23) 544 544 Excess of value over cost of selling 215,000,000 shares under the treasury stock plan phase II (Note 23) 576 576 Excess of value over cost of treasury stock transferred to employee stock ownership program (Note 23) 228 228 Excess of value over cost of selling 22,363,000 shares under the treasury stock plan phase III (Note 23) 36 36 Excess of value over cost of selling 864,000,000 shares under the treasury stock plan phase IV (Note 23) 1,996 1,996 Capitalization into 746,666,640 Series B shares in 1999 (373) (373) Reduction additional paid in capital as a result of cancellation treasury stock (Note 23) — (2,454) Differences from acquisition of non-controlling interest — (22) Net 4,453 1,977 |
TREASURY STOCK (Tables)
TREASURY STOCK (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TREASURY STOCK. | |
Schedule of treasury stock | Maximum Purchase Number of Phase Basis Period shares Amount I EGM December 21, 2005 - June 20, 2007 1,007,999,964 Rp5,250 II AGM June 29, 2007 - December 28, 2008 215,000,000 Rp2,000 III AGM June 20, 2008 - December 20, 2009 339,443,313 Rp3,000 - BAPEPAM - LK October 13, 2008 - January 12, 2009 4,031,999,856 Rp3,000 IV AGM May 19, 2011 - November 20, 2012 645,161,290 Rp5,000 |
Schedule of movement in treasury stock | 2017 2018 Number of Number of shares % Rp shares % Rp Beginning balance 1,737,779,800 1.72 2,541 1,737,779,800 1.72 2,541 Sale of treasury stock — — — (1,737,779,800) (1.72) (2,541) Ending balance 1,737,779,800 1.72 2,541 — — — |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
REVENUES | |
Schedule of revenues | Consolidated 2016 Mobile Consumer Enterprise WIB Others revenue Telephone revenues 38,407 4,175 3,232 237 — 46,051 Interconnection revenues 1,340 — — 2,807 — 4,147 Data, internet, and information technology service revenues Cellular internet and data 28,304 — — 3 — 28,307 Internet, data communication, and information technology services — 4,683 8,173 981 — 13,837 Short Messaging Services (“SMS”) 15,944 — 6 3 — 15,953 Pay TV — 1,007 104 — — 1,111 Others — 11 17 — 19 47 Total Data, internet, and information technology service revenues 44,248 5,701 8,300 987 19 59,255 Network revenues 3 11 301 632 — 947 Other revenues Sales of peripherals — — 1,489 — — 1,489 Manage service and terminal — — 784 4 — 788 Call center service — — 276 238 — 514 E-health — — 415 — — 415 E-payment — — 424 — — 424 Tower lease rental — — — 733 — 733 Others — 523 595 228 224 1,570 Total other revenues — 523 3,983 1,203 224 5,933 Total revenues 83,998 10,410 15,816 5,866 243 116,333 Adjustments and eliminations — — — — (224) Total external revenues as reported in 83,998 10,410 15,816 5,866 19 Consolidated 2017 Mobile Consumer Enterprise WIB Others revenue Telephone revenues 37,144 3,757 2,758 253 — 43,912 Interconnection revenues 1,672 — — 3,502 — 5,174 Data, internet, and information technology service revenues Cellular internet and data 37,951 — — 3 — 37,954 Internet, data communication, and information technology services — 6,070 8,033 980 — 15,083 Short Messaging Services (“SMS”) 13,091 — 99 2 — 13,192 Pay TV — 1,209 734 - — 1,943 Others — 14 177 37 126 354 Total Data, internet, and information technology service revenues 51,042 7,293 9,043 1,022 126 68,526 Network revenues 2 4 1,177 690 — 1,873 Other revenues Sales of peripherals — — 2,292 — — 2,292 Manage service and terminal — — 535 — — 535 Call center service — — 831 139 — 970 E-health — — 470 — — 470 E-payment — — 506 — — 506 Tower lease rental — — — 796 — 796 Others 213 51 1,518 1,037 383 3,202 Total other revenues 213 51 6,152 1,972 383 8,771 Total revenues 90,073 11,105 19,130 7,439 509 128,256 Adjustments and eliminations — — — — (383) Total external revenues as reported in 90,073 11,105 19,130 7,439 126 Consolidated 2018 Mobile Consumer Enterprise WIB Others revenue Telephone revenues 34,338 3,328 2,298 284 — 40,248 Interconnection revenues 933 — — 4,529 — 5,462 Data, internet, and information technology service revenues Cellular internet and data 41,033 — 3 — — 41,036 Internet, data communication, and information technology services — 6,872 10,247 1,016 8 18,143 Short Messaging Services (“SMS”) 9,046 0 251 1 — 9,298 Pay TV — 2,251 75 — — 2,326 Others — 20 486 208 130 844 Total Data, internet, and information technology service revenues 50,079 9,143 11,062 1,225 138 71,647 Network revenues 2 1 712 1,020 — 1,735 Other revenues Sales of peripherals — — 1,852 — — 1,852 Manage service and terminal — — 1,449 0 — 1,449 Call center service — — 877 167 8 1,052 E-health — — 563 — — 563 E-payment — — 449 — — 449 Others — 5 1,598 1,959 282 3,844 Total other revenues — 5 6,788 2,126 290 9,209 Total revenues from contract with customer 85,352 12,477 20,860 9,184 428 128,301 Revenues from other source — 1,414 164 909 — 2,487 Total revenues 85,352 13,891 21,024 10,093 428 130,788 Adjustments and eliminations (14) 0 30 (9) (298) Total external revenues as reported in 85,338 13,891 21,054 10,084 130 |
PERSONNEL EXPENSES (Tables)
PERSONNEL EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PERSONNEL EXPENSES | |
Schedule of Personnel Expenses | 2016 2017 2018 Salaries and related benefits 7,122 7,821 8,077 Vacation pay, incentives and other benefits 4,219 3,339 3,292 Pension benefit cost (Note 31) 1,068 1,700 1,120 Net periodic post-employment health care benefit cost (Note 31) 163 276 335 LSA expense (Note 32) 237 255 161 Other employee benefit cost (Note 31) 82 62 113 Other post-employment benefit cost (Note 31) 48 42 32 Early retirement program 628 — 1 Others 45 34 47 Total 13,612 13,529 13,178 |
OPERATION, MAINTENANCE AND TE_2
OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES | |
Summary of operational maintenance and telecommunication service expenses | 2016 2017 2018 Operation and maintenance 17,047 19,929 25,215 Radio frequency usage charges (Note 35c.i) 3,687 4,276 5,473 Leased lines and CPE 4,141 5,255 5,125 Concession fees and USO charges 2,217 2,249 2,297 Cost of sales of handset (Note 8) 1,481 1,544 1,860 Electricity, gas and water 960 1,037 1,051 Cost of SIM cards and vouchers (Note 8) 624 914 866 Tower leases 322 472 480 Vehicles rental and supporting facilities 367 301 413 Insurance 256 294 193 Others 161 332 920 Total 31,263 36,603 43,893 |
GENERAL AND ADMINISTRATIVE EX_2
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |
Schedule of general and administrative expenses | 2016 2017 2018 Provision for impairment of receivables 743 1,494 2,208 General expenses 1,626 1,449 1,792 Professional fees 594 498 823 Training, education and recruitment 399 531 463 Travelling 436 475 415 Meeting 207 241 233 Social contribution 134 197 181 Collection expenses 152 135 157 Others 319 240 322 Total 4,610 5,260 6,594 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TAXATION | |
Schedule of prepaid income taxes | 2017 2018 The Company - Corporate Income Tax 610 494 Subsidiaries - Corporate Income Tax 175 420 Total 785 914 Current portion (22) (20) Non-current portion (Note 13) 763 894 |
Schedule of prepaid other taxes | 2017 2018 The Company: Value Added Tax (“VAT”) 1,967 2,167 Article 22 - Witholding tax on goods delivery and import 1 — Article 23 - Witholding tax on service delivery 44 63 Subsidiaries: VAT 3,879 3,792 Article 23 - Withholding tax on services delivery 17 1 Total 5,908 6,023 Current portion (2,833) (3,325) Non-current portion (Note 13) 3,075 2,698 |
Schedule of current income tax liabilities | 2017 2018 The Company: Article 25 - Installment of corporate income tax 1 1 Subsidiaries: Article 25 - Installment of corporate income tax 37 14 Article 29 - Corporate income tax 763 389 Total 801 404 |
Schedule of other tax liabilities | 2017 2018 The Company: Article 4 (2) - Final tax 26 18 Article 21 - Individual income tax 81 47 Article 22 - Withholding tax on goods delivery and imports 3 3 Article 23 - Withholding tax on services 29 36 Article 26 - Withholding tax on non-resident income 1 3 VAT - Tax collector 372 334 Sub-total 512 441 Subsidiaries: Article 4 (2) - Final tax 85 75 Article 21 - Individual income tax 129 113 Article 22 - Withholding tax on goods delivery and imports 3 5 Article 23 - Withholding tax on services 115 110 Article 26 - Withholding tax on non-resident income 303 7 VAT 842 25 Sub-total 1,477 335 Total 1,989 776 |
Schedule of components of income tax expense (benefit) | 2016 2017 2018 Current The Company 671 586 236 Subsidiaries 10,067 10,771 9,196 Sub-total 10,738 11,357 9,432 Deferred The Company (844) (1,608) (159) Subsidiaries (877) 209 93 Sub-total (1,721) (1,399) (66) Net income tax expense 9,017 9,958 9,366 |
Schedule of reconciliation of income tax expense | 2016 2017 2018 Profit before income tax 38,166 42,628 36,077 Less: income subject to final tax - net (1,684) (1,491) (1,277) Net 36,482 41,137 34,800 Income tax expense calculated at the Company’s applicable statutory tax rate of 20% 7,296 8,228 6,960 Difference in applicable statutory tax rate for subsidiaries 1,904 2,046 1,753 Non-deductible expenses 496 767 423 Final income tax expense 345 591 60 Deferred tax assets that cannot be utilized - net 56 4 (2) Deferred tax assets on fixed assets revaluation for tax purpose (1,415) (1,796) — Others 335 118 172 Net income tax expense 9,017 9,958 9,366 |
Schedule of net income tax expense | 2016 2017 2018 Estimated taxable income (loss) of the Company 1,703 (861) 400 Corporate income tax: Current corporate income tax expense: The Company 340 — 80 Subsidiaries 10,053 10,766 9,193 Current income tax expense on tax assessment: The Company — — 99 Final tax expense: The Company 331 586 57 Subsidiaries 14 5 3 Total income tax expense - current 10,738 11,357 9,432 Income tax expense (benefit) - deferred - effect of temporary differences at enacted maximum tax rates: The Company Tax loss utilization (recognition) — (172) 172 Cost to obtain contracts — — 38 Net periodic pension and other post-employment benefits costs and provision for employee benefits (214) (235) 5 Finance leases 68 0 2 Valuation of long-term investments (34) — — Depreciation and gain on disposal or sale of property and equipment (825) (1,012) (180) Trade receivables write-off (provision for impairment of receivables) 41 (206) (132) Realization of accrual (accrual) of expenses and inventory write-off (provision for inventory obsolescence) 142 26 (36) Amortization of (addition to) deferred installation fee (10) 1 (18) Amortization of intangible assets, land rights and others (12) (10) (10) Net (844) (1,608) (159) Telkomsel Finance leases 164 177 170 Depreciation and gain on disposal or sale of property and equipment (913) (55) 64 Amortization of (addition to) license (4) 12 58 Provision for impairment of receivables (5) (41) (88) Provision for employee benefits (55) (68) (83) Net (813) 25 121 Subsidiaries - others - net (64) 184 (28) Net income tax benefit - deferred (1,721) (1,399) (66) Income tax expense - net 9,017 9,958 9,366 |
Schedule of deferred tax assets and liabilities | (Charged) Credited to other (Charged) December 31, credited to profit comprehensive credited December 31, 2016 or loss income to equity 2017 The Company Deferred tax assets: Net periodic pension and other post-employment benefit costs 563 197 342 — 1,102 Provision for impairment of receivables 388 206 — — 594 Provision for employee benefits 209 38 — — 247 Difference between accounting and tax bases of property and equipment (772) 1,012 — — 240 Fiscal loss — 172 — — 172 Deferred installation fee 75 (1) — — 74 Accrued expenses and provision for inventory obsolescence 69 (26) — — 43 Finance leases 1 — — 1 Total deferred tax assets 533 1,598 342 — 2,473 Deferred tax liabilities: Valuation of long-term investment (11) — — — (11) Land rights, intangible assets and others (11) 10 — — (1) Total deferred tax liabilities (22) 10 — — (12) Deferred tax assets of the Company - net 511 1,608 342 — 2,461 Deferred tax assets of the other subsidiaries - net 258 (20) 9 96 343 Telkomsel Deferred tax assets: Provision for employee benefits 478 68 131 — 677 Provision for impairment of receivables 143 41 — — 184 Total deferred tax assets 621 109 131 — 861 Deferred tax liabilities: Finance leases (549) (177) — — (726) Difference between accounting and tax bases of property and equipment (482) 55 — (125) (552) License amortization (48) (12) — — (60) Total deferred tax liabilities (1,079) (134) — (125) (1,338) Deferred tax liabilities of Telkomsel - net (458) (25) 131 (125) (477) Deferred tax liabilities of the other subsidiaries - net (287) (164) 12 (17) (456) Total deferred tax liabilities - net (745) (189) 143 (142) (933) Total deferred tax assets - net 769 1,588 351 96 2,804 Effect of Adoption of new (Charged) Charged to other December 31, accounting credited to profit comprehensive Charged December 31, 2017 standards or loss income to equity 2018 The Company Deferred tax assets: Net periodic pension and other post-employment benefit costs 1,102 — 27 (466) — 663 Provision for impairment of receivables 594 (40) 132 — — 686 Provision for employee benefits 247 — (32) — — 215 Difference between accounting and tax bases of property and equipment 240 — 180 — — 420 Deferred installation fee 74 — 18 — — 92 Accrued expenses and provision for inventory obsolescence 43 — 36 — — 79 Land rights, intangible assets and others (1) — 10 — — 9 Fiscal loss 172 — (172) — — — Total deferred tax assets 2,471 (40) 199 (466) — 2,164 Deferred tax liabilities: Cost to obtain contracts — (42) (38) — — (80) Valuation of long-term investment (11) — — — — (11) Finance leases 1 — (2) — — (1) Total deferred tax liabilities (10) (42) (40) — — (92) Deferred tax assets of the Company - net 2,461 (82) 159 (466) — 2,072 Deferred tax assets of the other subsidiaries - net 343 0 75 (8) (5) 405 Telkomsel Deferred tax assets: Provision for employee benefits 677 — 83 (119) — 641 Provision for impairment of receivables 184 98 88 — — 370 Total deferred tax assets 861 98 171 (119) — 1,011 Deferred tax liabilities: Finance leases (726) — (170) — — (896) Difference between accounting and tax bases of property and equipment (552) — (64) — — (616) License amortization (60) — (58) — — (118) Total deferred tax liabilities (1,338) — (292) — — (1,630) Deferred tax liabilities of Telkomsel - net (477) 98 (121) (119) — (619) Deferred tax liabilities of the other subsidiaries - net (456) (16) (47) (5) (54) (578) Total deferred tax liabilities - net (933) 82 (168) (124) (54) (1,197) Total deferred tax assets - net 2,804 (82) 234 (474) (5) 2,477 |
PENSION AND OTHER POST-EMPLOY_2
PENSION AND OTHER POST-EMPLOYMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | |
Schedule of pension and other post-employment benefit liabilities | Notes 2017 2018 Pension benefit and other post-employment benefit obligations Pension benefit The Company - funded 31a.i.a Defined pension benefit obligation 31a.i.a.i 1,540 1,057 Additional pension benefit obligation 31a.i.a.ii 1,076 6 The Company - unfunded 31a.i.b 2,384 1,830 Telkomsel 31a.ii 1,839 1,541 Telkomsat 0 0 MD Media 0 0 Infomedia 0 — Projected pension benefit obligations 6,839 4,434 Net periodic post-employment health care benefit 31b 2,419 195 Other post-employment benefit 31c 510 419 Obligation under the Labor Law 31d 427 507 Total 10,195 5,555 |
Schedule of net periodic pension benefit cost | Notes 2016 2017 2018 Pension benefit cost The Company - funded 31a.i.a Defined pension benefit obligation 31a.i.a.i 608 557 511 Additional pension benefit obligation 31a.i.a.ii — 657 69 The Company - unfunded 31a.i.b 279 239 198 Telkomsel 31a.ii 181 247 342 MD Media 0 0 0 Infomedia 0 0 0 Telkomsat 0 0 0 Total pension benefit cost 27 1,068 1,700 1,120 Net periodic post-employment health care benefit cost 27,31b 163 276 335 Other post-employment benefit cost 27,31c 48 42 32 Obligation under the Labor Law 27,31d 82 62 113 Total 1,361 2,080 1,600 |
Summary of amounts recognized in other comprehensive income (loss) | Notes 2016 2017 2018 Defined benefit plan actuarial gain (losses) The Company - funded 31a.i.a Defined pension benefit obligation 31a.i.a.i (492) (1,154) 1,236 Additional pension benefit obligation 31a.i.a.ii — (419) 934 The Company - unfunded 31a.i.b (119) (100) 137 Telkomsel 31a.ii (292) (530) 514 MD Media (1) (2) 0 Infomedia 0 (1) 0 Telkomsat 0 0 0 Post-employment health care benefit cost 31b (1,309) (551) 2,559 Other post-employment benefit 31c (20) (40) 24 Obligation under the Labor Law 31d (33) (72) 14 Sub-total (2,266) (2,869) 5,418 Deferred tax effect at the applicable tax rates 30i 208 494 (598) Defined benefit plan actuarial (losses) gain - net of tax (2,058) (2,375) 4,820 |
Schedule of the timing of benefits payments and weighted average duration of DBO | Expected Benefits Payment The Company Funded Post-employment Other post- Defined pension Additional pension health care employment Time Period benefit obligation benefit obligation Unfunded Telkomsel benefits benefits Within next 10 years 16,370 — 948 2,498 5,620 485 Within 10-20 years 20,349 — 160 7,880 6,913 91 Within 20-30 years 16,207 20 29 6,680 6,217 39 Within 30-40 years 9,400 38 9 1,580 3,193 3 Within 40-50 years 3,383 30 — — 661 — Within 50-60 years 644 50 — — 22 — Within 60-70 years 62 101 — — 0 — Within 70-80 years 2 — — — — — Weighted average duration of DBO 9.11 years 9.11 years 3.97 years 10.58 years 17.41 years 3.13 years |
Schedule of change in discount rate and rate of compensation would have effect on DBO | Discount Rate Rate of Compensation 1% Increase 1% Decrease 1% Increase 1% Decrease Sensitivity Increase (decrease) in amounts Increase (decrease) in amounts Funded: Defined pension benefit obligation (1,568) 1,832 275 (286) Additional pension benefit obligation (2) 1 — — Unfunded (41) 38 42 (45) Telkomsel (497) 562 294 (276) Post-employment health care benefits (1,428) 1,815 1,783 (1,508) Other post-employment benefits (12) 13 — — |
Pension benefit cost | Telkomsel | |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | |
Summary of amounts recognized in other comprehensive income (loss) | 2016 2017 2018 Actuarial (gain) losses recognised during the year due to: Experience adjustments 32 (77) 192 Changes in financial assumptions 360 661 (774) Return on plan assets (excluding amount included in net interest expense) (100) (54) 68 Net 292 530 (514) |
Changes in value of pension benefit obligation | 2017 2018 Changes in projected pension benefit obligation Projected pension benefit obligation at beginning of year 2,034 2,928 Charged to profit or loss: Service costs 149 213 Net Interest costs 167 203 Actuarial losses (gain) recognised in OCI 584 (583) Benefit paid (6) (27) Projected pension benefit obligation at end of year 2,928 2,734 Changes in pension benefit plan assets Fair value of plan assets at beginning of year 841 1,089 Interest income 69 74 Return on plan assets (excluding amount included in net interest expense) 54 (68) Employer’s contributions 131 125 Benefit paid (6) (27) Fair value of pension plan assets at end of year 1,089 1,193 Pension benefit obligation at end of year 1,839 1,541 |
Summary of movements of prepaid pension benefit cost | 2017 2018 Pension benefit obligation at beginning of year 1,193 1,839 Periodic pension benefit cost 247 342 Actuarial losses (gain) recognised in OCI 584 (583) Return on plan assets (excluding amount included in net interest expense) (54) 68 Employer’s contributions (131) (125) Pension benefit obligation at end of year 1,839 1,541 |
Schedule of components of net periodic pension benefit cost | 2016 2017 2018 Service costs 107 149 213 Net interest costs 74 98 129 Total 181 247 342 |
Schedule of actuarial assumptions | 2016 2017 2018 Discount rate 8.25 % 7.00 % 8.25 % Rate of compensation increases 8.00 % 8.00 % 8.00 % Indonesian mortality table |
Pension benefit cost | The company | Defined pension benefit obligation | |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | |
Summary of amounts recognized in other comprehensive income (loss) | 2016 2017 2018 Actuarial losses (gain) recognised during the year due to: Experience adjustments 70 163 329 Changes in demographic assumptions 140 — — Changes in financial assumptions 1,470 2,699 (3,020) Return on plan assets (excluding amount included in net interest expense) (1,188) (1,708) 1,455 Net 492 1,154 (1,236) |
Changes in value of pension benefit obligation | 2017 2018 Changes in projected pension benefit obligations Projected pension benefit obligations at beginning of year 18,849 22,354 Charged to profit or loss: Service costs 366 384 Past service cost - plan amendments 94 — Interest costs 1,454 1,459 Pension plan participants’ contributions 41 38 Actuarial losses (gain) recognised in OCI 2,862 (2,691) Pension benefits paid (1,312) (1,423) Projected pension benefit obligations at end of year 22,354 20,121 Changes in pension benefit plan assets Fair value of pension plan assets at beginning of year 19,046 20,814 Interest income 1,388 1,357 Return on plan assets (excluding amount included in net interest expense) 1,708 (1,455) Pension plan participants’ contributions 41 38 Pension benefits paid (1,312) (1,423) Provision of additional benefit — (205) Plan administration cost (57) (62) Fair value of pension plan assets at end of year 20,814 19,064 Projected pension benefit obligations at end of year (1,540) (1,057) |
Summary of fair value of plan assets | 2017 2018 Quoted in Quoted in active market Unquoted active market Unquoted Cash and cash equivalents 1,481 — 873 — Equity instruments: Finance 1,463 — 1,456 — Consumer goods 1,411 — 1,336 — Infrastructure, utilities and transportation 656 — 530 — Construction, property and real estate 363 — 199 — Basic industry and chemical 115 — 124 — Trading, service and investment 388 — 420 — Mining 92 — 112 — Agriculture 46 — 55 — Miscellaneous industries 377 — 362 — Equity-based mutual fund 1,233 — 1,336 — Fixed income instruments: Corporate bonds — 5,428 — 5,267 Government bonds 6,968 — 6,166 — Mutual funds 54 — 54 — Non-public equity: Direct placement — 237 — 288 Property — 188 — 178 Others — 314 — 308 Total 14,647 6,167 13,023 6,041 |
Summary of movements of prepaid pension benefit cost | 2017 2018 Projected pension benefit obligations (prepaid pension benefit cost) at beginning of year (197) 1,540 Net periodic pension benefit cost 583 548 Provision of additional pension benefit — 205 Actuarial losses (gain) recognised in OCI 2,862 (2,691) Return on plan assets (excluding amount included in net interest expense) (1,708) 1,455 Projected pension benefit obligations at end of year 1,540 1,057 |
Schedule of components of net periodic pension benefit cost | 2016 2017 2018 Service costs 363 366 384 Past service cost - plan amendments 245 94 — Plan administration cost 46 57 62 Net interest cost (14) 66 102 Net periodic pension benefit cost 640 583 548 Amount charged to subsidiaries under contractual agreements (32) (26) (37) Net periodic pension benefit cost less cost charged to subsidiaries 608 557 511 |
Schedule of actuarial assumptions | 2016 2017 2018 Discount rate 8.00 % 6.75 % 8.25 % Rate of compensation increases 8.00 % 8.00 % 8.00 % Indonesian mortality table |
Pension benefit cost | The company | Additional pension benefit obligation | |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | |
Summary of amounts recognized in other comprehensive income (loss) | 2017 2018 Actuarial (gain) losses recognised during the year due to: Experience adjustment — (773) Changes in financial assumption 419 (175) Return on plan assets (excluding amount included in net interest expense) — 14 Total 419 (934) |
Changes in value of pension benefit obligation | 2017 2018 Changes in projected pension benefit obligations Projected pension benefit obligations at beginning of year — 1,076 Charged to profit or loss: Past service costs 657 — Interest costs — 69 Actuarial losses (gain) recognised in OCI 419 (948) Pension benefits paid — (93) Projected pension benefit obligations at end of year 1,076 104 Changes in pension benefit plan assets Fair value of pension plan assets at beginning of year — — Provision of additional benefit — 205 Return of benefit plan assets — (14) Pension benefits paid — (93) Fair value of pension plan assets at end of year — 98 Projected pension benefit obligations at end of year (1,076) (6) As of December 31, 2018, there is no plan asset on additional pension benefits funds determined by management of Dapen with the approval of the Oversight Board. Changes in additional pension benefit obligation for the years ended December 31, 2017 and 2018 are as follow: 2017 2018 Additional pension benefit obligation at beginning of year — 1,076 Past service cost 657 — Interest costs — 69 Provision of additional benefit — (205) Actuarial loss (gain) recognised in OCI 419 (948) Return on plan asset — 14 Projected additional pension benefit obligation at end of year 1,076 6 |
Schedule of components of net periodic pension benefit cost | 2017 2018 Past service costs 657 — Net interest costs — 69 Pension benefit costs 657 69 |
Schedule of actuarial assumptions | 2017 2018 Rate of return on investment 9.50%-10.25 % 9.30%-10.00 % Discount rate 6.75 % 8.25 % Actuarial discount rate of pension fund 9.25-9.50 % 9.25-9.50 % Rate of compensation increases 8.00 % 8.00 % Indonesian mortality table |
Pension benefit cost | The company | Unfunded Pension | |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | |
Summary of amounts recognized in other comprehensive income (loss) | 2016 2017 2018 Actuarial losses (gain) recognised during the year due to: Experience adjustments (9) 19 27 Changes in demographic assumptions 30 — (21) Changes in financial assumptions 98 81 (143) Net 119 100 (137) |
Changes in value of pension benefit obligation | 2017 2018 Unfunded projected pension benefit obligations at beginning of year 2,507 2,384 Charged to profit or loss: Service costs 51 54 Net interest costs 188 144 Actuarial losses (gain) recognised in OCI 100 (137) Benefits paid by employer (462) (615) Unfunded projected pension benefit obligations at end of year 2,384 1,830 |
Schedule of components of net periodic pension benefit cost | 2016 2017 2018 Service costs 64 51 54 Net interest costs 215 188 144 Total periodic pension benefit cost 279 239 198 |
Schedule of actuarial assumptions | 2016 2017 2018 Discount rate 7.75%-8.00 % 6.00%- 6 .75 % 8.00%- 8 .25% Rate of compensation increases 6.10%-8.00 % 6.10%-8.00 % 6.10%- 8 .00% Indonesian mortality table |
Post-employment health care benefit cost | |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | |
Summary of amounts recognized in other comprehensive income (loss) | 2016 2017 2018 Actuarial losses (gain) recognised during the year due to: Experience adjustments 26 (1,198) (1,100) Changes in demographic assumptions 66 — — Changes in financial assumptions 1,736 2,658 (2,541) Return on plan assets (excluding amount included in net interest expense) (519) (909) 1,082 Net 1,309 551 (2,559) |
Changes in value of pension benefit obligation | 2017 2018 Changes in projected post-employment health care benefit obligation Projected post-employment health care benefit obligation at beginning of year 13,357 15,448 Charged to profit or loss: Interest costs 1,115 1,102 Actuarial losses (gain) recognised in OCI 1,460 (3,641) Post-employment health care benefits paid (484) (486) Projected post-employment health care benefit obligation at end of year 15,448 12,423 Changes in post-employment health care benefit plan assets Fair value of plan assets at beginning of year 11,765 13,029 Interest income 979 927 Return on plan assets (excluding amount included in net interest expense) 909 (1,082) Post-employment health care benefits paid (484) (486) Plan administration costs (140) (160) Fair value of pension plan assets at end of year 13,029 12,228 Projected for post-employment health care benefit obligation - net 2,419 195 |
Summary of fair value of plan assets | 2017 2018 Quoted in Quoted in active market Unquoted active market Unquoted Cash and cash equivalents 1,354 — 1,115 — Equity instruments: Manufacturing and consumer 835 — 799 — Finance industries 840 — 799 — Construction 254 — 190 — Infrastructure and telecommunication 350 — 332 — Wholesale 137 — 177 — Mining 65 — 77 — Other Industries: Services 38 — 60 — Agriculture 35 — 32 — Biotechnology and pharma industry 68 — 85 — Others 1 — 3 — Equity-based mutual funds 1,113 — 1,204 — Fixed income instruments: Fixed income mutual funds 7,642 — 7,020 — Unlisted shares: Private placement — 297 — 335 Total 12,732 297 11,893 335 |
Summary of movements of prepaid pension benefit cost | 2017 2018 Projected post-employment health care benefit obligation at beginning of year 1,592 2,419 Net periodic post-employment health care benefit costs 276 335 Actuarial losses (gain) recognised in OCI 1,460 (3,641) Return on plan assets (excluding amount included in net interest expense) (909) 1,082 Projected post-employment health care benefit obligation at end of year 2,419 195 |
Schedule of components of net periodic pension benefit cost | 2016 2017 2018 Service costs 9 — — Plan administration costs 144 140 160 Net interest costs 12 136 175 Periodic post-employment health care benefit cost 165 276 335 Amounts charged to subsidiaries under contractual agreements (2) — — Net periodic post-employment health care benefit cost less cost charged to subsidiaries 163 276 335 |
Schedule of actuarial assumptions | 2016 2017 2018 Discount rate 8.50 % 7.25 % 8.75 % Health care costs trend rate assumed for next year 7.00 % 7.00 % 7.00 % Ultimate health care costs trend rate 7.00 % 7.00 % 7.00 % Year that the rate reaches the ultimate trend rate Indonesian mortality table |
Other post-employment benefit cost | |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | |
Summary of amounts recognized in other comprehensive income (loss) | 2016 2017 2018 Actuarial losses (gain) recognised during the year due to: Experience adjustments 2 10 40 Changes in demographic assumptions 0 — (34) Changes in financial assumptions 18 30 (30) Total 20 40 (24) |
Summary of movements of prepaid pension benefit cost | 2017 2018 Projected other post-employment benefit obligations at beginning of year 502 510 Charged to profit or loss: Service costs 6 6 Net interest costs 36 26 Actuarial losses (gain) recognised in OCI 40 (24) Benefits paid by employer (74) (99) Projected other post-employment benefits obligations at the end of year 510 419 |
Schedule of components of net periodic pension benefit cost | 2016 2017 2018 Service costs 7 6 6 Net interest costs 41 36 26 Total 48 42 32 |
Schedule of actuarial assumptions | 2016 2017 2018 Discount rate 7.75 % 5.75 % 8.00 % Indonesian mortality table |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | |
Schedule of nature of relationship with related parties | Related parties Nature of relationships with related parties Nature of accounts/transactions The Government – Ministry of Finance Majority stockholder Internet and data service revenues, other telecommunication service revenues, operation and maintenance expense, finance income, finance costs and investment in financial instruments Government agencies Entities under common control Network service revenues, internet and data service revenues and other telecommunication revenues MoCI Entity under common control Concession fees, radio frequency usage charges, USO charges, telecommunication service revenues and operation and maintenance expenses Indosat Entity under common control Interconnection revenues, network service revenues, interconnection expenses, leased line expenses, operation and maintenance expenses PT Perusahaan Listrik Negara (Persero) (“PLN”) Entity under common control Electricity expenses, finance income, finance costs and investment in financial instrument PT Pertamina (Persero) (“Pertamina”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Pegadaian (Persero) (“Pegadaian”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Garuda Indonesia (Persero) Tbk (“Garuda”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Asuransi Jasa Indonesia (Persero) (“Jasindo”) Entity under common control Satellite insurance expenses and vehicle insurance expenses Perum Peruri (“Peruri”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Angkasa Pura (“Angkasa Pura”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Balai Pustaka (“Balai Pustaka”) Entity under common control Internet and data service revenues, other telecommunication service revenues PT Kereta Api Indonesia (“KAI”) Entity under common control Internet and data service revenues, other telecommunication service revenues INTI Entity under common control Purchase of property and equipment and construction service State-owned banks Entities under common control Finance income and finance costs BNI Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs Bank Mandiri Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs Details of the nature of relationships and accounts/transactions with significant related parties are as follows: Related parties Nature of relationships with related parties Nature of accounts/transactions BRI Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs BJB Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs PT Mandiri Manajemen Investasi Entity under common control Available-for-sale financial assets BTN Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs Bahana TCW Entity under common control Available-for-sale financial assets, bonds and notes PT Sarana Multi Infrastruktur (“SMI”) Entity under common control Finance costs Indonusa Associated company Network service revenues and data communication expenses Teltranet Associated company Network service revenue, leased line and CPE expenses and operation and maintenance expenses Tiphone Associated company Distribution of SIM cards and pulse reload voucher Koperasi Pegawai Telkom (“Kopegtel”) Other related entity Installation services, leases of buildings expenses, lease of vehicles expenses, purchases of vehicles, and purchases of property and equipment and construction service, maintenance and cleaning service expenses, and Revenue Sharing Agreement (“RSA”) revenues Yakes Other related entity Medical expenses, internet and data service revenues and e-health revenues PT Poin Multi Media Nusantara (“POIN”) Other related entity Cost of sales of handset PT Perdana Mulia Makmur (“PMM”) Other related entity Cost of sales of handset Koperasi Pegawai Telkomsel (“Kisel”) Other related entity Internet and data service revenues, other 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 PT Graha Informatika Nusantara (“Gratika”) Other related entity Network service revenues, operation and maintenance expenses, purchase of property and equipment and construction services and distribution of SIM card and pulse reload voucher PT Pembangunan Telekomunikasi Indonesia (“Bangtelindo”) Other related entity Purchase of property and equipment and construction services Directors Key management personnel Honorarium and facilities Commissioners Supervisory personnel Honorarium and facilities |
Schedule of significant transactions with related parties | 2016 2017 2018 % of total % of total % of total Amount revenues Amount revenues Amount revenues REVENUES Majority stockholder Ministry of Finance 207 0.18 280 0.22 258 0.20 Entities under common control Government agencies 2,279 1.96 2,568 2.00 3,720 2.84 Indosat 2,167 1.86 1,789 1.39 1,002 0.77 BRI 181 0.16 237 0.18 397 0.30 Pegadaian 93 0.08 115 0.09 228 0.17 BNI 136 0.12 105 0.08 188 0.14 Pertamina 64 0.06 94 0.07 183 0.14 BTN 107 0.09 129 0.10 179 0.14 Bank Mandiri 161 0.14 157 0.12 173 0.13 Peruri — — — — 120 0.09 Angkasa Pura — — — — 114 0.09 Garuda 75 0.06 55 0.04 105 0.08 KAI 68 0.06 18 0.01 83 0.06 Balai Pustaka — — — — 81 0.06 Others 893 0.78 720 0.57 696 0.53 Sub-total 6,224 5.37 5,987 4.65 7,269 5.54 Associated companies 198 0.17 178 0.15 55 0.04 Other related entities 253 0.22 315 0.25 73 0.06 Total 6,882 5.94 6,760 5.27 7,655 5.84 2016 2017 2018 % of total % of total % of total Amount expenses Amount expenses Amount expenses EXPENSES Majority stockholder Ministry of Finance — — 12 0.01 — — Entities under common control MoCI 5,911 7.84 6,533 7.77 8,109 8.68 PLN 1,037 1.38 2,269 2.70 2,596 2.78 Indosat 939 1.25 890 1.06 933 1.00 Jasindo 267 0.35 168 0.20 349 0.37 Others 128 0.16 114 0.14 511 0.55 Sub-total 8,282 10.98 9,974 11.87 12,498 13.38 Associated companies Indonusa 145 0.19 264 0.31 306 0.33 Teltranet 49 0.06 123 0.15 181 0.19 Others 38 0.05 34 0.04 11 0.01 Sub-total 232 0.30 421 0.50 498 0.53 Other related entities Kisel 771 1.02 813 0.97 916 0.98 POIN 1,459 1.94 405 0.48 850 0.91 PMM — — 404 0.48 850 0.91 Kopegtel 533 0.71 713 0.85 836 0.90 Yakes 192 0.25 139 0.17 128 0.14 Others 188 0.25 83 0.10 190 0.20 Sub-total 3,143 4.17 2,557 3.05 3,770 4.04 Total 11,657 15.45 12,964 15.43 16,766 17.95 2016 2017 2018 % of total % of total % of total Amount finance income Amount finance income Amount finance income FINANCE INCOME Majority stockholder Ministry of Finance 2 0.12 0 — — Entities under common control State-owned banks 895 52.16 863 60.18 596 58.78 Government agencies 34 1.98 34 2.37 12 1.18 Others 5 0.29 35 2.44 6 0.59 Total 936 54.55 932 64.99 614 60.55 2016 2017 2018 % of total % of total % of total Amount finance cost Amount finance cost Amount finance cost FINANCE COSTS Majority stockholder Ministry of Finance 64 2.28 54 1.95 41 1.16 Entities under common control State-owned banks 1,228 43.70 820 29.61 1,140 32.36 SMI — — 94 3.39 110 3.12 Total 1,292 45.98 968 34.95 1,291 36.64 2016 2017 2018 % of total % of total % of total Amount revenues Amount revenue Amount revenues DISTRIBUTION OF SIM CARD AND PULSE RELOAD VOUCHER Other related entities Tiphone 3,441 2.96 3,888 3.03 4,390 3.36 Kisel 4,600 3.95 4,181 3.26 4,221 3.23 Gratika 408 0.35 408 0.32 474 0.36 Total 8,449 7.26 8,477 6.61 9,085 6.95 2017 2018 % of total % of total Amount property and Amount property and PURCHASE OF PROPERTY AND EQUIPMENTS Entities under common control INTI 203 0.61 137 0.41 Others 98 0.29 70 0.21 Sub-total 301 0.90 207 0.62 Other related entities Kopegtel 130 0.39 144 0.43 Bangtelindo 64 0.19 135 0.40 Others 188 0.57 193 0.57 Sub-total 382 1.15 472 1.40 Total 683 2.05 679 2.02 Presented below are balances of accounts with related parties: 2017 2018 % of total % of total Amount assets Amount assets a. Cash and cash equivalents (Note 4) 19,236 9.71 14,544 7.06 b. Other current financial assets (Note 5) 1,170 0.59 471 0.23 c. Trade receivables - net (Note 6) 1,864 0.94 2,014 0.98 d. Other current assets Entities under common control MoCI 3,485 1.76 3,478 1.69 Others 60 0.03 85 0.04 Sub-total 3,545 1.79 3,563 1.73 Other related entities 68 0.03 78 0.04 Total 3,613 1.82 3,641 1.77 e. Other non-current assets Entities under common control MoCI 2,019 1.02 1,743 0.85 Others 33 0.02 28 0.01 Sub-total 2,052 1.04 1,771 0.86 Other related entities 25 0.01 18 0.01 Total 2,077 1.05 1,789 0.87 2017 2018 % of total % of total Amount liabilities Amount liabilities f. Trade payables (Note 15) Majority stockholder Ministry of Finance 29 0.03 2 0.00 Entities under common control MoCI 1,561 1.81 1,477 1.66 Indosat 225 0.26 122 0.14 Others 108 0.12 313 0.35 Sub-total 1,894 2.19 1,912 2.15 Other related entities Kopegtel 206 0.24 279 0.31 Others 284 0.32 259 0.29 Sub-total 490 0.56 538 0.60 Associated companies 47 0.05 37 0.04 Total 2,460 2.83 2,489 2.79 2017 2018 % of total % of total Amount liabilities Amount liabilities g. Accrued expenses Majority stockholder Ministry of Finance 9 0.01 7 0.01 Entities under common control State-owned banks 22 0.03 61 0.07 Others 129 0.15 86 0.10 Sub-total 151 0.18 147 0.17 Other related entities Kisel 235 0.27 183 0.21 Others — — 13 0.01 Sub-total 235 0.27 196 0.22 Total 395 0.46 350 0.40 h. Advances from customers Majority stockholder Ministry of Finance 19 0.02 19 0.02 Entity under common control PLN 11 0.01 12 0.01 Total 30 0.03 31 0.03 i. Short-term bank loans (Note 18) 1,297 1.50 956 1.08 j. Two-step loans (Note 19a) 1,098 1.27 949 1.07 k. Long-term bank loans (Note 19c) 7,895 9.14 12,620 14.20 l. Other borrowings (Note 19d) 1,295 1.50 2,244 2.52 |
Schedule of remuneration of the Board of Commissioners and key management personnel | 2016 2017 2018 % of total % of total % of total Amount expenses Amount expenses Amount expenses Directors 427 0.57 % 175 0.21 % 360 0.39 % Board of Commissioners 121 0.16 % 65 0.08 % 166 0.18 % |
OPERATING SEGMENT (Tables)
OPERATING SEGMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OPERATING SEGMENT | |
Schedule of revenue and expenses between operating segments | 2016 Total Adjustments & Total Mobile Consumer Enterprise WIB Others Segment eliminations consolidated Segment results Revenues External revenues 83,998 10,410 15,816 5,866 19 116,109 224 116,333 Inter-segment revenues 2,724 1,877 12,877 14,451 209 32,138 (32,138) — Total segment revenues 86,722 12,287 28,693 20,317 228 148,247 (31,914) 116,333 Expenses External expenses (37,814) (11,024) (17,813) (10,451) (417) (77,519) 358 (77,161) Inter-segment expenses (12,547) (2,793) (9,647) (4,805) (12) (29,804) 29,804 — Total segment expenses (50,361) (13,817) (27,460) (15,256) (429) (107,323) 30,162 (77,161) Segment results 36,361 (1,530) 1,233 5,061 (201) 40,924 (1,752) 39,172 Other information Capital expenditures (12,568) (7,085) (3,036) (5,729) (1) (28,419) (780) (29,199) Depreciation and amortization (12,808) (2,881) (1,386) (1,715) (19) (18,809) 253 (18,556) Provision recognised in current period (221) (392) 119 (238) (1) (733) (10) (743) 2017 Total Adjustments & Total Mobile Consumer Enterprise WIB Others Segment eliminations consolidated Segment results Revenues External revenues 90,073 11,105 19,130 7,439 126 127,873 383 128,256 Inter-segment revenues 3,086 287 16,801 15,305 602 36,081 (36,081) — Total segment revenues 93,159 11,392 35,931 22,744 728 163,954 (35,698) 128,256 Expenses External expenses (39,452) (10,360) (20,627) (12,333) (979) (83,751) (603) (84,354) Inter-segment expenses (14,382) (1,563) (15,053) (5,611) (70) (36,679) 36,679 — Total segment expenses (53,834) (11,923) (35,680) (17,944) (1,049) (120,430) 36,076 (84,354) Segment results 39,325 (531) 251 4,800 (321) 43,524 378 43,902 Other information Capital expenditures (15,134) (6,544) (3,637) (7,120) (11) (32,446) (708) (33,154) Depreciation and amortization (13,560) (2,839) (2,136) (2,382) (22) (20,939) 462 (20,477) Provision recognised in current period (291) (385) (668) (127) (2) (1,473) (21) (1,494) 2018 Total Adjustments & Total Mobile Consumer Enterprise WIB Others Segment eliminations consolidated Segment results Revenues External revenues 85,338 13,891 21,054 10,084 130 130,497 291 130,788 Inter-segment revenues 3,880 2,290 17,995 16,678 886 41,729 (41,729) — Total segment revenues 89,218 16,181 39,049 26,762 1,016 172,226 (41,438) 130,788 Expenses External expenses (40,041) (11,739) (21,717) (14,624) (1,042) (89,163) (3,092) (92,255) Inter-segment expenses (15,408) (3,792) (16,116) (6,010) (31) (41,357) 41,357 — Total segment expenses (55,449) (15,531) (37,833) (20,634) (1,073) (130,520) 38,265 (92,255) Segment results 33,769 650 1,216 6,128 (57) 41,706 (3,173) 38,533 Other information Capital expenditures (14,373) (6,958) (5,325) (6,321) (18) (32,995) (625) (33,620) Depreciation and amortization (13,095) (3,060) (2,128) (3,146) (21) (21,450) 8 (21,442) Provision recognised in current period (438) (438) (764) (71) (5) (1,716) (363) (2,079) Adjustments and eliminations: 2016 2017 2018 Segment results 40,924 43,524 41,706 Operating loss of operating business (339) (786) (798) Other eliminations and adjustments (1,390) 1,195 (2,063) IFRS reconciliation (23) (31) (312) Consolidated operating income 39,172 43,902 38,533 |
Schedule of revenues information based on the location of the customers | 2016 2017 2018 Indonesia Foreign countries Total |
Schedule of non-current operating assets by geographic area | 2016 2017 2018 Non-current operating assets Indonesia 114,948 130,169 144,296 Foreign countries 2,371 3,233 3,648 Total 117,319 133,402 147,944 |
SIGNIFICANT COMMITMENTS AND A_2
SIGNIFICANT COMMITMENTS AND AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT COMMITMENTS AND AGREEMENTS | |
Schedule of capital expenditures | Amounts in foreign currencies Equivalent in Currencies (in millions) Rupiah Rupiah — 7,988 U.S. dollar 94 1,349 Euro 1.23 20 HKD 0.79 1 Total 9,358 |
Schedule of significant agreements | (i) The Company Contracting parties Initial date of agreement Significant provisions of the agreement The Company, TII and NEC Corporation May 12, 2016 Procurement and installation agreement of Sistem Komunikasi Kabel Laut (“SKKL”) Indonesia Global Gateway The Company and Consortium Bisnis Submarine Cable November 10, 2017 Procurement and installation agreement of SKKL Sabang-Lhoksemawe-Medan The Company and PT Sisindokom Lintas Buana November 15, 2017 Procurement and installation for Provider Edge Virtual Private Network (“PE-VPN”) CISCO expansion The Company and PT Sisindokom Lintas Buana April 26, 2018 Procurement and installation for PE-VPN CISCO expansion The Company and PT ZTE Indonesia May 31, 2018 Procurement and installation of Optical Line Terminal and Optical Network Terminal (“ONT”) Platform ZTE The Company and PT ZTE Indonesia September 13, 2018 Procurement agreement for ONT Platform ZTE The Company and PT ZTE Indonesia October 30, 2018 Procurement agreement for Set Top Box Platform ZTE phase-2 The Company and PT Huawei Tech Investment November 23, 2018 Procurement and installation for Dual Wavelength Division Multiplexing (“DWDM”) Platform Huawei The Company and PT Lintas Teknologi Indonesia December 13, 2018 Procurement and installation for DWDM Platform Nokia NARU 2018 The Company and NEC Indonesia December 13, 2018 Procurement and installation agreement of Inside Plant SKKL Platform NEC expansion and reengineering transport The Company and PT Datacomm Diangraha December 14, 2018 Procurement and installation for Metro Ethernet Platform Nokia-ALU expansion The Company and PT Huawei Tech Investment December 17, 2018 Procurement and installation agreement of Metro Ethernet, Broadband Remote Access Server, Policy and Charging Enforcement Function and Provider Edge Transit Platform Huawei The Company and PT Master System Infotama December 31, 2018 Procurement and installation for IP Backbone Platform CISCO expansion The Company and PT Lancs Arche Consumma December 31, 2018 Procurement and installation for DWDM Platform Coriant NARU 2018 (ii) Telkomsel Contracting parties Initial date of agreement Significant provisions of the agreement Telkomsel, PT Nokia Siemens Network, Nokia Siemens Network Oy and Nokia Siemens Networks GmbH & Co.KG April 17, 2008 The combined 2G and 3G CS Core Network Rollout Agreement (“ROA”) Telkomsel, PT Ericsson Indonesia and PT Ericsson AB April 17, 2008 Technical Service Agreement (“TSA”) for combined 2G and 3G CS Core Network Telkomsel, PT Datacraft Indonesia, PT Dimension Data Indonesia and PT Huawei Tech Investment February 3, 2010 Next Generation Convergence Core Transport Rollout and Technical Support agreement 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 Agreements 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 Tech Investment March 25, 2013 Technical Support agreement for the procurement of Gateway GPRS Support Node (“GGSN”) Service Complex Telkomsel, Wipro Limited, and PT WT Indonesia April 23, 2013 Development and procurement of Operational and Strategic Decision Support System Solution Agreement Telkomsel, PT Huawei Tech Investment and PT Ericsson Indonesia October 22, 2013 Procurement of GGSN Service Complex TSA and ROA agreement Telkomsel, PT Ericsson Indonesia, PT Nokia Solutions and Network Indonesia, Nokia Solutions and Network Oy, PT Huawei Tech Investment and PT ZTE Indonesia February 1, 2018 Ultimate Radio Network Infrastructure ROA and TSA agreement |
Schedule of borrowings and other credit facilities | Lenders Total facility Maturity Currency Facility utilized BRI 500 March 14, 2020 Rp 280 BNI 850 March 31, 2019 Rp 261 Bank Mandiri 500 December 23, 2019 Rp 361 Total 1,850 902 |
Schedule of future minimum lease payments/receivables | Less than More than Total 1 year 1‑5 years 5 years As lessee 23,832 6,271 13,030 4,531 As lessor 4,105 1,084 2,464 557 |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL RISK MANAGEMENT | |
Schedule of financial assets | 2017 2018 Loans and receivables Cash and cash equivalents 25,145 — Trade and other receivables, net 9,564 — Other current financial assets 1,005 — Other non-current assets 183 — Available-for-sale financial assets Available-for-sale investments 1,541 — Amortized cost Cash and cash equivalents, net — 17,435 Trade and other receivables, net — 9,928 Contract assets, net — 1,560 Other current financial assets, net — 844 Other non-current assets, net — 443 FVTPL Subsidiaries' investments — 709 Mutual funds — 470 Convertible bonds — 213 Total financial assets 37,438 31,602 |
Schedule of financial liabilities | 2017 2018 Financial liabilities measured at amortized cost Trade and other payables 15,791 15,214 Accrued expenses 12,630 12,769 Interest-bearing loans and other borrowings Short-term bank loans 2,289 4,043 Two-step loans 1,098 949 Bonds and notes 8,982 10,481 Long-term bank loans 18,004 23,220 Obligations under finance leases 3,804 3,145 Other borrowings 1,295 2,244 Other liabilities 296 261 Total financial liabilities 64,189 72,326 |
Schedule of fair values | Fair value measurement at reporting date using Quoted prices in active markets for Significant identical assets or Significant other unobservable liabilities observable inputs inputs 2017 Carrying value Fair value (level 1) (level 2) (level 3) Financial assets measured at fair value Available-for-sale investments 1,541 1,541 1,151 17 373 Financial liabilities for which fair values are disclosed Interest-bearing loans and other borrowings: Two-step loans 1,098 1,111 — — 1,111 Bonds and notes 8,982 10,051 10,051 — — Long-term bank loans 18,004 18,126 — — 18,126 Obligations under finance leases 3,804 3,804 — — 3,804 Other borrowings 1,295 1,365 — — 1,365 Other liabilities 296 296 — — 296 Total 35,020 36,294 11,202 17 25,075 Fair value measurement at reporting date using Quoted prices in active markets for Significant identical assets or Significant other unobservable liabilities observable inputs inputs 2018 Carrying value Fair value (level 1) (level 2) (level 3) Financial assets measured at fair value Mutual funds 470 470 470 — — Convertible bonds 213 213 — — 213 Subsidiaries' investments 709 709 — — 709 Financial liabilities for which fair values are disclosed Interest-bearing loans and other borrowings: Two-step loans 949 898 — — 898 Bonds and notes 10,481 10,894 9,380 — 1,514 Long-term bank loans 23,220 22,796 — — 22,796 Obligations under finance leases 3,145 3,145 — — 3,145 Other borrowings 2,244 2,154 — — 2,154 Other liabilities 261 261 — — 261 Total 41,692 41,540 9,850 — 31,690 |
Schedule of exposure to foreign currency risk | 2017 2018 U.S. dollar Japanese yen U.S. dollar Japanese yen (in millions) (in millions) (in millions) (in millions) Financial assets 261 7 473 8 Financial liabilities (304) (5,413) (391) (4,656) Net exposure (43) (5,406) 82 (4,648) |
Sensitivity analysis of foreign currencies | Equity/profit (loss) December 31, 2018 U.S. dollar (1% strengthening) 12 Japanese yen (5% strengthening) (30) |
Schedule of interest rate profile of interest-bearing financial instruments | 2017 2018 Fixed rate borrowings (14,281) (21,260) Variable rate borrowings (21,191) (22,822) |
Schedule of maximum exposure to credit risk of financial assets | 2017 2018 Cash and cash equivalents 25,145 17,435 Trade and other receivables, net 9,564 9,928 Contract Asset — 1,560 Other current financial assets 2,173 1,314 Other non-current assets 183 443 Total 37,065 30,680 |
Schedule of maturity profile of financial liabilities contractual undiscounted payments | Carrying Contractual 2022 and amount cash flows 2018 2019 2020 2021 thereafter 2017 Trade and other payables 15,791 (15,791) (15,791) — — — — Accrued expenses 12,630 (12,630) (12,630) — — — — Interest bearing loans and other borrowings: Bank loans 20,293 (24,365) (7,721) (5,056) (3,979) (2,641) (4,968) Bonds and notes 8,982 (18,278) (929) (929) (2,873) (726) (12,821) Obligations under finance leases 3,804 (4,685) (1,083) (969) (866) (778) (989) Other borrowings 1,295 (1,759) (220) (303) (285) (266) (685) Two-step loans 1,098 (1,247) (251) (223) (215) (190) (368) Other liabilities 296 (355) (17) (34) (34) (135) (135) Total 64,189 (79,110) (38,642) (7,514) (8,252) (4,736) (19,966) Carrying Contractual 2023 and amount cash flows 2019 2020 2021 2022 thereafter 2018 Trade and other payables 15,214 (15,214) (15,214) — — — — Accrued expenses 12,769 (12,769) (12,769) — — — — Interest bearing loans and other borrowings: Two-step loans 949 (1,075) (242) (232) (205) (159) (237) Bonds and notes 10,481 (19,050) (1,562) (3,436) (1,231) (2,817) (10,004) Bank loans 27,263 (33,376) (10,441) (9,165) (3,991) (3,220) (6,559) Other borrowings 2,244 (2,905) (490) (570) (533) (495) (817) Obligations under finance leases 3,145 (3,764) (1,049) (945) (781) (605) (384) Other liabilities 261 (306) (16) (36) (36) (109) (109) Total 72,326 (88,459) (41,783) (14,384) (6,777) (7,405) (18,110) |
Schedule of changes in liabilities arising from financing activities | Non-cash changes Foreign December 31, Net exchange New Other December 31, 2017 cash flows Acquisition movement leases Changes 2018 Short-term bank loans 2,289 1,759 — — — (5) 4,043 Two step loans 1,098 (214) — 65 — — 949 Bonds and notes 8,982 1,498 — — — 1 10,481 Long-term bank loans 18,004 5,088 58 86 — (16) 23,220 Other borrowings 1,295 947 — — — 2 2,244 Obligations under finance leases 3,804 (827) — — 168 — 3,145 Total liabilities from financing activities 35,472 8,251 58 151 168 (18) 44,082 |
CAPITAL MANAGEMENT (Tables)
CAPITAL MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CAPITAL MANAGEMENT | |
Schedule of capital structure | 2017 2018 Amount Portion Amount Portion Short-term debts 2,289 1.79 % 4,043 2.83 % Long-term debts 33,183 25.94 % 40,039 28.04 % Total debts 35,472 27.73 % 44,082 30.87 % Equity attributable to owners of the parent company 92,467 72.27 % 98,739 69.13 % Total 127,939 100.00 % 142,821 100.00 % |
Schedule of debt-to-equity ratio | 2017 2018 Total interest-bearing debts 35,472 44,082 Less: cash and cash equivalents (25,145) (17,435) Net debts 10,327 26,647 Total equity attributable to owners of the parent company 92,467 98,739 Net debt-to-equity ratio 11.17 % 26.99 % |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
Schedule of non-cash investing activities | 2016 2017 2018 Acquisitions of property and equipment: Credited to trade payables 6,199 5,525 4,275 Advance paid — — 2,837 Non-monetary exchange 636 816 — Interest capitalization 188 328 270 Credited to obligations under finance leases 368 518 201 Acquisitions of intangible assets: Credited to trade payables 41 846 235 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SUBSEQUENT EVENTS | |
Summary of fair values of the identifiable assets and liabilities acquired at acquisition date | Total Assets Cash and cash equivalents 5 Trade receivables 121 Property and equipment (Note 9) 1,107 Other assets 113 Liabilities Current liabilities (129) Non-current liabilities (378) Other liabilities (104) Fair value of identifiable net assets acquired 735 Fair value of non-controlling interest (37) Provisional goodwill 415 Fair value consideration transferred 1,113 |
GENERAL (Details)
GENERAL (Details) | Apr. 27, 2018IDR (Rp) | Oct. 26, 2016item | Oct. 25, 2016item | Jun. 23, 2015IDR (Rp) | Apr. 19, 2013itemRp / sharesshares | Jun. 25, 2010IDR (Rp) | Jul. 30, 2004itemRp / sharesshares | Apr. 16, 1999shares | Nov. 14, 1995itemshares | Jul. 31, 2002shares | Dec. 31, 2001shares | May 31, 1999shares | Dec. 31, 1996shares | Dec. 31, 2018itemshares | Dec. 31, 2017itemshares | Dec. 31, 2016itemshares | Dec. 31, 1997shares | Apr. 18, 2013Rp / sharesshares | Jun. 20, 2007shares | Jul. 29, 2004Rp / sharesshares | Nov. 13, 1995shares |
Share capital | |||||||||||||||||||||
Number of years in which overall evaluation of networks and services licenses is performed | 5 years | ||||||||||||||||||||
Number of shares outstanding | 8,400,000,000 | ||||||||||||||||||||
Bonus shares distributed through the capitalization of certain additional paid-in capital | 746,666,640 | ||||||||||||||||||||
Stock split, conversion ratio | 5 | 2 | |||||||||||||||||||
Number of shares in each ADS after stock split | item | 100 | 100 | 100 | ||||||||||||||||||
Treasury stock | 1,737,779,800 | 1,737,779,800 | |||||||||||||||||||
Number of shares bought back | 211,290,500 | ||||||||||||||||||||
Cancellation of treasury shares | Rp | Rp 1,737,779,800 | ||||||||||||||||||||
Series A Bond | |||||||||||||||||||||
Share capital | |||||||||||||||||||||
Nominal amount | Rp | Rp 2,200,000,000,000 | Rp 1,005,000,000,000 | |||||||||||||||||||
Debt instrument term | 7 years | 5 years | |||||||||||||||||||
Series B Bond | |||||||||||||||||||||
Share capital | |||||||||||||||||||||
Nominal amount | Rp | Rp 2,100,000,000,000 | Rp 1,995,000,000,000 | |||||||||||||||||||
Debt instrument term | 10 years | 10 years | |||||||||||||||||||
Series C Bond | |||||||||||||||||||||
Share capital | |||||||||||||||||||||
Nominal amount | Rp | Rp 1,200,000,000,000 | ||||||||||||||||||||
Debt instrument term | 15 years | ||||||||||||||||||||
Series D Bond | |||||||||||||||||||||
Share capital | |||||||||||||||||||||
Nominal amount | Rp | Rp 1,500,000,000,000 | ||||||||||||||||||||
Debt instrument term | 30 years | ||||||||||||||||||||
Series B shares | |||||||||||||||||||||
Share capital | |||||||||||||||||||||
Number of shares outstanding | 100,799,996,399 | 20,159,999,279 | 20,159,999,279 | 10,079,999,639 | 8,399,999,999 | ||||||||||||||||
Number of Series B Shares in each American Depository Shares Before Stock Split | item | 200 | ||||||||||||||||||||
Par value per share | Rp / shares | Rp 50 | Rp 250 | |||||||||||||||||||
Company’s authorized capital stock | 399,999,999,999 | 79,999,999,999 | 79,999,999,999 | 39,999,999,999 | |||||||||||||||||
Number of shares in each ADS after stock split | item | 100 | ||||||||||||||||||||
Number of series B shares issued | item | 4 | ||||||||||||||||||||
Series B shares | IPO | |||||||||||||||||||||
Share capital | |||||||||||||||||||||
Number of shares issued | 933,333,000 | ||||||||||||||||||||
Threshold period of stockholders to sell the shares | 1 year | ||||||||||||||||||||
Series A Dwiwarna Share | |||||||||||||||||||||
Share capital | |||||||||||||||||||||
Number of shares outstanding | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||
Par value per share | Rp / shares | Rp 50 | Rp 250 | Rp 250 | Rp 500 | |||||||||||||||||
Company’s authorized capital stock | 1 | 1 | 1 | 1 | |||||||||||||||||
American Depositary Shares | |||||||||||||||||||||
Share capital | |||||||||||||||||||||
Number of shares outstanding | 35,000,000 | 68,824,067 | |||||||||||||||||||
Number of Series B Shares in each American Depository Shares Before Stock Split | item | 20 | ||||||||||||||||||||
Number of shares in each ADS after stock split | item | 200 | 40 | |||||||||||||||||||
Government agencies | Series B shares | |||||||||||||||||||||
Share capital | |||||||||||||||||||||
Number of shares held sold during the period | 700,000,000 | 312,000,000 | 1,200,000,000 | 898,000,000 | 388,000,000 | ||||||||||||||||
Percentage of total shares outstanding | 3.10% | 11.90% | |||||||||||||||||||
Government agencies | Series B shares | IPO | |||||||||||||||||||||
Share capital | |||||||||||||||||||||
Number of shares held sold during the period | 233,334,000 | ||||||||||||||||||||
Shares distributed as incentive to stockholders who did not sell their shares within one year of IPO | 2,670,300 |
GENERAL - Direct Subsidiaries (
GENERAL - Direct Subsidiaries (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Telkomsel | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 65.00% | 65.00% |
Total assets before elimination | Rp 82,219 | Rp 85,597 |
Dayamitra | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 13,221 | Rp 13,606 |
Metra | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 17,123 | Rp 13,246 |
TII | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 10,404 | Rp 9,122 |
Telkom Akses | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 4,244 | Rp 5,716 |
GSD | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 5,794 | Rp 5,633 |
PINS | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 4,004 | Rp 3,473 |
Telkom Infratel | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 3,351 | Rp 1,871 |
Telkomsat | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 3,190 | Rp 574 |
MetraNet | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 782 | Rp 524 |
Jalin | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 298 | Rp 225 |
Napsindo | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 60.00% | 60.00% |
Total assets before elimination | Rp 5 | Rp 5 |
GENERAL - Indirect Subsidiaries
GENERAL - Indirect Subsidiaries (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Sigma | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 7,758 | Rp 6,050 |
Telekomunikasi Indonesia International Pte. Ltd., Singapore | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 3,413 | Rp 3,048 |
Infomedia | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 2,381 | Rp 2,115 |
TLT | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 55.00% | 55.00% |
Total assets before elimination | Rp 2,128 | Rp 2,009 |
MD Media | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 1,645 | Rp 1,106 |
Finnet | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 60.00% | 60.00% |
Total assets before elimination | Rp 1,011 | Rp 907 |
TSGN | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 70.00% | 49.00% |
Total assets before elimination | Rp 828 | Rp 815 |
Telekomunikasi Indonesia International Ltd., Hong Kong | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 1,185 | Rp 710 |
MDI | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 1,178 | Rp 658 |
TL | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 677 | Rp 639 |
Swadharma | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 51.00% | |
Total assets before elimination | Rp 461 | |
NSI | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 286 | Rp 300 |
Ad Medika | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 346 | Rp 273 |
Melon | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 457 | Rp 231 |
Metra Plasa | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 60.00% | 60.00% |
Total assets before elimination | Rp 167 | Rp 203 |
GYS | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 51.00% | 51.00% |
Total assets before elimination | Rp 250 | Rp 178 |
Nutech | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 60.00% | 60.00% |
Total assets before elimination | Rp 93 | Rp 60 |
Telkom Australia | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 115 | Rp 123 |
Telkom USA | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 100.00% |
Total assets before elimination | Rp 57 | Rp 36 |
SMI | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 100.00% | 99.99% |
Total assets before elimination | Rp 16 | Rp 18 |
NSS | ||
Direct/ Indirect subsidiaries | ||
Percentage of ownership interest | 70.00% | 49.00% |
Total assets before elimination | Rp 76 | Rp 23 |
GENERAL - Acquisition (Details)
GENERAL - Acquisition (Details) Rp in Millions, $ in Millions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018IDR (Rp) | Dec. 28, 2018IDR (Rp)shares | Apr. 09, 2018IDR (Rp)shares | Apr. 02, 2018IDR (Rp)shares | Aug. 08, 2017MYR (RM) | Aug. 08, 2017IDR (Rp) | Jun. 29, 2016MYR (RM) | Jun. 29, 2016IDR (Rp) | May 25, 2016IDR (Rp)shares | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018IDR (Rp) | Apr. 25, 2018 | Apr. 18, 2018MYR (RM) | Apr. 18, 2018IDR (Rp) | Dec. 31, 2017USD ($) | Dec. 31, 2017IDR (Rp) | Dec. 14, 2017MYR (RM)item | Dec. 14, 2017IDR (Rp)item | Dec. 13, 2017IDR (Rp) | Jul. 02, 2013 |
Direct/ Indirect subsidiaries | ||||||||||||||||||||||||||
Net book value | $ | $ 13,000 | |||||||||||||||||||||||||
Revenue | Rp 130,788,000 | $ 9,095 | Rp 130,788,000 | Rp 128,256,000 | Rp 116,333,000 | |||||||||||||||||||||
Profit before income tax | 2,510 | 36,077,000 | 42,628,000 | 38,166,000 | ||||||||||||||||||||||
Issued capital | 344 | Rp 4,953,000 | Rp 5,040,000 | |||||||||||||||||||||||
Fair values of identifiable assets and liabilities acquired at acquisition date: | ||||||||||||||||||||||||||
Other comprehensive income (loss) | $ 344 | 4,954,000 | Rp (2,332,000) | Rp (2,099,000) | ||||||||||||||||||||||
Nutech | Metra | ||||||||||||||||||||||||||
Direct/ Indirect subsidiaries | ||||||||||||||||||||||||||
Net book value | Rp 18,000 | |||||||||||||||||||||||||
Shares acquired from non controlling interest | shares | 36,000 | |||||||||||||||||||||||||
Percentage of ownership interest acquired from non-controlling interest | 60.00% | |||||||||||||||||||||||||
Acquisition cost paid to non-controlling interest | Rp 24,000 | |||||||||||||||||||||||||
Goodwill | $ 11,000 | Rp 6,000 | ||||||||||||||||||||||||
Swadharma Sarana | Metra | ||||||||||||||||||||||||||
Direct/ Indirect subsidiaries | ||||||||||||||||||||||||||
Number of shares issued | shares | 11,837 | |||||||||||||||||||||||||
Number of shares acquired | shares | 14,600 | |||||||||||||||||||||||||
Percentage of ownership interest acquired | 51.00% | 36.50% | ||||||||||||||||||||||||
Acquisition cost | Rp 178,000 | Rp 220,000 | ||||||||||||||||||||||||
Net book value | 196,000 | |||||||||||||||||||||||||
Revenue | 823,000 | |||||||||||||||||||||||||
Profit before income tax | Rp 110,000 | |||||||||||||||||||||||||
Profit before tax | Rp 101,000 | |||||||||||||||||||||||||
Cash consideration | 210,000 | |||||||||||||||||||||||||
Fair values of identifiable assets and liabilities acquired at acquisition date: | ||||||||||||||||||||||||||
Total income | Rp 630,000 | |||||||||||||||||||||||||
Swadharma Sarana | SSI | ||||||||||||||||||||||||||
Direct/ Indirect subsidiaries | ||||||||||||||||||||||||||
Acquisition cost | Rp 397,000 | |||||||||||||||||||||||||
CIP PT Collega Inti Pratama [Member] | Sigma | ||||||||||||||||||||||||||
Direct/ Indirect subsidiaries | ||||||||||||||||||||||||||
Number of shares acquired | shares | 2,604 | |||||||||||||||||||||||||
Percentage of ownership interest acquired | 70.00% | |||||||||||||||||||||||||
Acquisition cost | Rp 217,000 | |||||||||||||||||||||||||
Net book value | 165,000 | |||||||||||||||||||||||||
Profit before tax | Rp 24,000 | |||||||||||||||||||||||||
Cash consideration | Rp 188,000 | |||||||||||||||||||||||||
Fair values of identifiable assets and liabilities acquired at acquisition date: | ||||||||||||||||||||||||||
Total income | Rp 166,000 | |||||||||||||||||||||||||
TSGN | TII | ||||||||||||||||||||||||||
Direct/ Indirect subsidiaries | ||||||||||||||||||||||||||
Percentage of ownership interest acquired | 21.00% | 49.00% | 49.00% | |||||||||||||||||||||||
Number of key managements placed and replaced | item | 3 | 3 | ||||||||||||||||||||||||
Number of total key managements controls business | item | 5 | 5 | ||||||||||||||||||||||||
Consideration transferred, acquisition-date fair value | RM 66,150,000 | Rp 220,000 | ||||||||||||||||||||||||
Fair value of identifiable net assets acquired | 309,000 | |||||||||||||||||||||||||
Fair values of identifiable assets and liabilities acquired at acquisition date: | ||||||||||||||||||||||||||
Cash and cash equivalents | 21,000 | |||||||||||||||||||||||||
Trade receivables | 18,000 | |||||||||||||||||||||||||
Other current assets | 57,000 | |||||||||||||||||||||||||
Property and equipment | 770,000 | |||||||||||||||||||||||||
Other non-current assets | 20,000 | |||||||||||||||||||||||||
Current liabilities | (422,000) | |||||||||||||||||||||||||
Non-current liabilities | (155,000) | |||||||||||||||||||||||||
Fair value of identifiable net assets acquired | 309,000 | |||||||||||||||||||||||||
Fair value of non controlling interest | (157,000) | |||||||||||||||||||||||||
Provisional goodwill | 68,000 | |||||||||||||||||||||||||
Fair value consideration transferred | RM 66,150,000 | Rp 220,000 | ||||||||||||||||||||||||
Telin Malaysia | ||||||||||||||||||||||||||
Direct/ Indirect subsidiaries | ||||||||||||||||||||||||||
Percentage of ownership interest acquired | 21.00% | 21.00% | ||||||||||||||||||||||||
Acquisition cost | RM 8,764,789 | Rp 31,000 | ||||||||||||||||||||||||
Goodwill | 61,000 | |||||||||||||||||||||||||
Cash consideration | Rp 16,000 | |||||||||||||||||||||||||
Fair values of identifiable assets and liabilities acquired at acquisition date: | ||||||||||||||||||||||||||
Total income | RM 13,323,065 | Rp 47,000 | Rp 23,000 | |||||||||||||||||||||||
Other comprehensive income (loss) | RM 7,888,930 | Rp 28,000 | Rp 20,000 | |||||||||||||||||||||||
Telin Malaysia | TII | ||||||||||||||||||||||||||
Direct/ Indirect subsidiaries | ||||||||||||||||||||||||||
Percentage of ownership interest acquired | 49.00% | |||||||||||||||||||||||||
PT Upperco | CIP PT Collega Inti Pratama [Member] | Sigma | ||||||||||||||||||||||||||
Direct/ Indirect subsidiaries | ||||||||||||||||||||||||||
Number of shares acquired | shares | 2,493 | |||||||||||||||||||||||||
Percentage of ownership interest acquired | 67.00% | |||||||||||||||||||||||||
Acquisition cost | Rp 208,000 | |||||||||||||||||||||||||
PT Abdi | CIP PT Collega Inti Pratama [Member] | Sigma | ||||||||||||||||||||||||||
Direct/ Indirect subsidiaries | ||||||||||||||||||||||||||
Number of shares acquired | shares | 111 | |||||||||||||||||||||||||
Percentage of ownership interest acquired | 3.00% | |||||||||||||||||||||||||
Acquisition cost | Rp 9,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | Software | |
Intangible assets | |
Estimated useful lives of intangible assets | 3 years |
Minimum | License | |
Intangible assets | |
Estimated useful lives of intangible assets | 3 years |
Minimum | Other intangible assets | |
Intangible assets | |
Estimated useful lives of intangible assets | 1 year |
Maximum | Software | |
Intangible assets | |
Estimated useful lives of intangible assets | 6 years |
Maximum | License | |
Intangible assets | |
Estimated useful lives of intangible assets | 20 years |
Maximum | Other intangible assets | |
Intangible assets | |
Estimated useful lives of intangible assets | 30 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Land rights | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 50 years |
Other telecommunication peripherals | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 5 years |
Minimum | Buildings | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 15 years |
Minimum | Leasehold improvements | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 2 years |
Minimum | Switching equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 3 years |
Minimum | Telegraph, telex and data communication equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 5 years |
Minimum | Transmission installation and equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 3 years |
Minimum | Satellite, earth station and equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 3 years |
Minimum | Cable network | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 5 years |
Minimum | Power supply | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 3 years |
Minimum | Data processing equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 3 years |
Minimum | Office equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 2 years |
Minimum | Vehicles | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 4 years |
Minimum | CPE assets | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 4 years |
Minimum | Other equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 2 years |
Maximum | Buildings | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 40 years |
Maximum | Leasehold improvements | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 15 years |
Maximum | Switching equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 15 years |
Maximum | Telegraph, telex and data communication equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 15 years |
Maximum | Transmission installation and equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 25 years |
Maximum | Satellite, earth station and equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 20 years |
Maximum | Cable network | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 25 years |
Maximum | Power supply | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 20 years |
Maximum | Data processing equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 20 years |
Maximum | Office equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 5 years |
Maximum | Vehicles | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 8 years |
Maximum | CPE assets | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 5 years |
Maximum | Other equipment | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Estimated useful lives of property and equipment | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign currency translations (Details) | 12 Months Ended | |
Dec. 31, 2018Rp / RMRp / ¥Rp / €Rp / $Rp / $ | Dec. 31, 2017Rp / RMRp / ¥Rp / €Rp / $Rp / $ | |
Foreign currency translations | ||
Customer relationship term | 23 years | |
Buy | USD | ||
Foreign currency translations | ||
Foreign currency translations | 14,375 | 13,565 |
Buy | Australian dollar | ||
Foreign currency translations | ||
Foreign currency translations | 10,157 | 10,592 |
Buy | Euro | ||
Foreign currency translations | ||
Foreign currency translations | Rp / € | 16,432 | 16,231 |
Buy | Yen | ||
Foreign currency translations | ||
Foreign currency translations | Rp / ¥ | 130.56 | 120.48 |
Buy | Malaysian ringgits | ||
Foreign currency translations | ||
Foreign currency translations | Rp / RM | 3,474 | 3,349 |
Sell | USD | ||
Foreign currency translations | ||
Foreign currency translations | 14,385 | 13,570 |
Sell | Australian dollar | ||
Foreign currency translations | ||
Foreign currency translations | 10,167 | 10,598 |
Sell | Euro | ||
Foreign currency translations | ||
Foreign currency translations | Rp / € | 16,446 | 16,242 |
Sell | Yen | ||
Foreign currency translations | ||
Foreign currency translations | Rp / ¥ | 130.70 | 120.55 |
Sell | Malaysian ringgits | ||
Foreign currency translations | ||
Foreign currency translations | Rp / RM | 3,480 | 3,355 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and diluted earnings per share and per ADS (Details) | 12 Months Ended |
Dec. 31, 2018multiplier | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Multiplier used to compute income per ADS | 100 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Financial instruments (Details) Rp in Millions, $ in Millions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($)item | Dec. 31, 2018IDR (Rp)item | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2018IDR (Rp) | Jan. 01, 2018IDR (Rp) | Dec. 31, 2017USD ($) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2015IDR (Rp) |
Disclosure of initial application of standards or interpretations [line items] | ||||||||||
Financial liabilities categorized as held for trading | Rp 0 | Rp 0 | ||||||||
Number of stages for recognition of expected credit losses | item | 2 | 2 | ||||||||
Period to trigger provision | 12 months | 12 months | ||||||||
Past due period for significant increased risk | 30 days | 30 days | ||||||||
Period to measure expected credit losses | 12 months | 12 months | ||||||||
Past due period for default | 90 days | 90 days | ||||||||
ASSETS | ||||||||||
Cash and cash equivalents. | $ 1,212 | Rp 29,767,000 | 17,435,000 | $ 1,747 | 25,145,000 | Rp 28,117,000 | ||||
Other current financial assets. | 91 | 1,314,000 | 2,173,000 | |||||||
Trade and other receivables | 690 | 9,928,000 | 9,564,000 | |||||||
Contract assets | 108 | 1,560,000 | ||||||||
Contract costs | 64 | 924,000 | ||||||||
Other current assets | 506 | 7,280,000 | 7,183,000 | |||||||
Long-term investments | 185 | 1,847,000 | 2,662,000 | 2,148,000 | ||||||
Assets Recognised From Costs to Obtain or Fulfil Contracts With Customers, Non Current | 22 | 320,000 | ||||||||
Deferred tax assets | 172 | 2,477,000 | 2,804,000 | |||||||
Other non-current assets. | 672 | 9,654,000 | 12,270,000 | |||||||
LIABILITIES | ||||||||||
Unearned income - current portion | 5,427,000 | |||||||||
Contract liabilities - current portion | 365 | 5,252,000 | 5,427,000 | |||||||
Unearned income - non-current portion | 524,000 | |||||||||
Contract liabilities - non-current portion | 45 | 652,000 | 524,000 | |||||||
Deferred tax liabilities | 83 | 1,197,000 | 933,000 | |||||||
Long-term loans and other borrowings | 2,347 | 33,743,000 | 27,974,000 | |||||||
EQUITY | ||||||||||
Retained earnings | 6,362 | 91,488,000 | 85,285,000 | |||||||
Other reserves | 22 | 321,000 | 230,000 | |||||||
Non-controlling Interests | 1,270 | 18,267,000 | 19,364,000 | |||||||
STATEMENT OF PROFIT OR LOSS | ||||||||||
Revenue | Rp 130,788,000 | 9,095 | Rp 130,788,000 | Rp 128,256,000 | 116,333,000 | |||||
Operation, maintenance and telecommunication service expenses | (43,893,000) | (3,052) | (43,893,000) | (36,603,000) | (31,263,000) | |||||
Marketing expenses | (4,001,000) | (278) | (4,001,000) | (5,268,000) | (4,132,000) | |||||
General and administrative expenses | (6,594,000) | (459) | (6,594,000) | (5,260,000) | (4,610,000) | |||||
Gain (loss) on foreign exchange - net | 71,000 | 5 | 71,000 | 51,000 | (52,000) | |||||
Other income | 1,745,000 | 121 | 1,745,000 | 1,039,000 | 751,000 | |||||
Other expenses | (680,000) | (47) | (680,000) | (1,320,000) | (2,469,000) | |||||
Finance costs | (3,523,000) | (245) | (3,523,000) | (2,769,000) | (2,810,000) | |||||
Income tax expense – net | (9,366,000) | (652) | (9,366,000) | (9,958,000) | (9,017,000) | |||||
OCI | ||||||||||
Foreign currency translation | 148,000 | $ 10 | Rp 148,000 | 24,000 | (40,000) | |||||
Net gain on available-for-sale | Rp 20,000 | Rp 0 | ||||||||
Provision for impairment | ||||||||||
ASSETS | ||||||||||
Cash and cash equivalents. | Rp (4,000) | |||||||||
Trade and other receivables | (4,520,000) | |||||||||
Contract assets | (34,000) | |||||||||
Previous standards | ||||||||||
ASSETS | ||||||||||
Cash and cash equivalents. | 17,439,000 | |||||||||
Other current financial assets. | 1,304,000 | |||||||||
Trade and other receivables | 12,141,000 | |||||||||
Other current assets | 7,982,000 | |||||||||
Long-term investments | 2,472,000 | |||||||||
Deferred tax assets | 2,504,000 | |||||||||
Other non-current assets. | 9,672,000 | |||||||||
LIABILITIES | ||||||||||
Unearned income - current portion | 5,190,000 | |||||||||
Unearned income - non-current portion | 652,000 | |||||||||
Deferred tax liabilities | 1,252,000 | |||||||||
Long-term loans and other borrowings | 33,748,000 | |||||||||
EQUITY | ||||||||||
Retained earnings | 91,396,000 | |||||||||
Other reserves | 304,000 | |||||||||
Non-controlling Interests | 18,338,000 | |||||||||
STATEMENT OF PROFIT OR LOSS | ||||||||||
Revenue | 130,784,000 | |||||||||
Operation, maintenance and telecommunication service expenses | (43,791,000) | |||||||||
Marketing expenses | (4,214,000) | |||||||||
General and administrative expenses | (6,137,000) | |||||||||
Gain (loss) on foreign exchange - net | 68,000 | |||||||||
Other income | 1,752,000 | |||||||||
Other expenses | (750,000) | |||||||||
Finance costs | (3,507,000) | |||||||||
Income tax expense – net | (9,426,000) | |||||||||
OCI | ||||||||||
Foreign currency translation | 146,000 | |||||||||
Net gain on available-for-sale | (10,000) | |||||||||
Previous standards | Provision for impairment | ||||||||||
ASSETS | ||||||||||
Trade and other receivables | Rp (4,335,000) | |||||||||
IFRS 9 | Provision for impairment | ||||||||||
ASSETS | ||||||||||
Cash and cash equivalents. | (4,000) | |||||||||
Trade and other receivables | (185,000) | |||||||||
Contract assets | (34,000) | |||||||||
IFRS 9 & 15 adjustment | ||||||||||
ASSETS | ||||||||||
Cash and cash equivalents. | (4,000) | (4,000) | ||||||||
Other current financial assets. | 10,000 | |||||||||
Trade and other receivables | (2,213,000) | (1,507,000) | ||||||||
Contract assets | 1,560,000 | 1,311,000 | ||||||||
Contract costs | 924,000 | 1,096,000 | ||||||||
Other current assets | (702,000) | (666,000) | ||||||||
Long-term investments | 190,000 | 69,000 | ||||||||
Assets Recognised From Costs to Obtain or Fulfil Contracts With Customers, Non Current | 320,000 | |||||||||
Deferred tax assets | (27,000) | (82,000) | ||||||||
Other non-current assets. | (18,000) | 27,000 | ||||||||
LIABILITIES | ||||||||||
Unearned income - current portion | (5,190,000) | |||||||||
Contract liabilities - current portion | 5,252,000 | 68,000 | ||||||||
Unearned income - non-current portion | (652,000) | |||||||||
Contract liabilities - non-current portion | 652,000 | |||||||||
Deferred tax liabilities | (55,000) | (82,000) | ||||||||
Long-term loans and other borrowings | (5,000) | |||||||||
EQUITY | ||||||||||
Retained earnings | 92,000 | 315,000 | ||||||||
Other reserves | 17,000 | (27,000) | ||||||||
Non-controlling Interests | Rp (71,000) | Rp (30,000) | ||||||||
STATEMENT OF PROFIT OR LOSS | ||||||||||
Revenue | 4,000 | |||||||||
Operation, maintenance and telecommunication service expenses | (102,000) | |||||||||
Marketing expenses | 213,000 | |||||||||
General and administrative expenses | (457,000) | |||||||||
Gain (loss) on foreign exchange - net | 3,000 | |||||||||
Other income | (7,000) | |||||||||
Other expenses | 70,000 | |||||||||
Finance costs | (16,000) | |||||||||
Income tax expense – net | 60,000 | |||||||||
OCI | ||||||||||
Foreign currency translation | 2,000 | |||||||||
Net gain on available-for-sale | Rp 10,000 |
TRANSLATION OF INDONESIAN RUP_2
TRANSLATION OF INDONESIAN RUPIAH INTO UNITED STATES DOLLAR (Details) | 12 Months Ended |
Dec. 31, 2018Rp / $ | |
TRANSLATION OF INDONESIAN RUPIAH INTO UNITED STATES DOLLAR | |
Average of market buy and sell rates | 14,380 |
CASH AND CASH EQUIVALENTS - Bre
CASH AND CASH EQUIVALENTS - Breakdown of cash and cash equivalents by related parties and third parties (Details) € in Millions, ¥ in Millions, RM in Millions, MOP$ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions, Rp in Billions | Dec. 31, 2018SGD ($) | Dec. 31, 2018JPY (¥) | Dec. 31, 2018TWD ($) | Dec. 31, 2018AUD ($) | Dec. 31, 2018MOP (MOP$) | Dec. 31, 2018EUR (€) | Dec. 31, 2018HKD ($) | Dec. 31, 2018MYR (RM) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017SGD ($) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017TWD ($) | Dec. 31, 2017AUD ($) | Dec. 31, 2017MOP (MOP$) | Dec. 31, 2017EUR (€) | Dec. 31, 2017HKD ($) | Dec. 31, 2017MYR (RM) | Dec. 31, 2017USD ($) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2015IDR (Rp) |
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | Rp 4,290 | Rp 4,530 | ||||||||||||||||||||
Time deposits | 13,113 | 20,603 | ||||||||||||||||||||
Provision for impairment of cash and cash equivalents | (4) | |||||||||||||||||||||
Total cash and cash equivalents | $ 1,212 | 17,435 | $ 1,747 | 25,145 | Rp 29,767 | Rp 28,117 | ||||||||||||||||
Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash on hand | 36 | 12 | ||||||||||||||||||||
Third parties | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 952 | 1,079 | ||||||||||||||||||||
Time deposits | 1,907 | 4,818 | ||||||||||||||||||||
HSBC | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 12 | 181 | 14 | 184 | ||||||||||||||||||
HSBC | HKD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | $ 5 | 9 | $ 4 | 6 | ||||||||||||||||||
PT Bank HSBC | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 1 | |||||||||||||||||||||
SCB | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 0 | 0 | ||||||||||||||||||||
SCB | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 10 | 148 | 11 | 154 | ||||||||||||||||||
Time deposits | 10 | 136 | ||||||||||||||||||||
SCB | Singapore dollar | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | $ 1 | 14 | $ 0 | 1 | ||||||||||||||||||
Bank Permata | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 218 | 278 | ||||||||||||||||||||
Bank Permata | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 2 | 30 | 0 | 2 | ||||||||||||||||||
Bank Muamalat | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 40 | 91 | ||||||||||||||||||||
Others | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 154 | 335 | ||||||||||||||||||||
Time deposits | 52 | 30 | ||||||||||||||||||||
Others | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 4 | 60 | 4 | 46 | ||||||||||||||||||
Others | Euro | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | € 1 | 20 | € 1 | 20 | ||||||||||||||||||
Others | HKD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 0 | 0 | 0 | 0 | ||||||||||||||||||
Others | Australian dollar | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | RM 3 | 12 | RM 0 | 0 | ||||||||||||||||||
Others | Taiwanese new dollar | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | $ 17 | 8 | $ 8 | 4 | ||||||||||||||||||
Others | Malaysian ringgits | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | $ 0 | 2 | $ 0 | 1 | ||||||||||||||||||
Time deposits | 11 | 39 | 14 | 47 | ||||||||||||||||||
Others | Macau patacas | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | MOP$ 0 | 0 | MOP$ 0 | 0 | ||||||||||||||||||
Bank CIMB Niaga | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 190 | 600 | ||||||||||||||||||||
Bank CIMB Niaga | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 2 | 31 | ||||||||||||||||||||
OCBC NISP | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 1,200 | |||||||||||||||||||||
Bank Mega | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 365 | 1,243 | ||||||||||||||||||||
UOB | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 17 | 23 | ||||||||||||||||||||
UOB | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 30 | 429 | 20 | 263 | ||||||||||||||||||
UOB Singapore | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 4 | 55 | 1 | 15 | ||||||||||||||||||
UOB Singapore | Singapore dollar | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 1 | 14 | 0 | 2 | ||||||||||||||||||
UOB Singapore | Malaysian ringgits | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | RM 3 | 9 | RM 2 | 8 | ||||||||||||||||||
BTPN | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 181 | 676 | ||||||||||||||||||||
BTPN | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 25 | 363 | 30 | 401 | ||||||||||||||||||
Bank ANZ | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 5 | |||||||||||||||||||||
Bank ANZ | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 5 | 73 | ||||||||||||||||||||
Bank Bukopin | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 248 | 22 | ||||||||||||||||||||
Related parties | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 3,338 | 3,451 | ||||||||||||||||||||
Time deposits | 11,206 | 15,785 | ||||||||||||||||||||
Bank Mandiri | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 1,199 | 1,481 | ||||||||||||||||||||
Time deposits | 611 | 446 | ||||||||||||||||||||
Bank Mandiri | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 10 | 139 | 27 | 367 | ||||||||||||||||||
Time deposits | 16 | 230 | ||||||||||||||||||||
Bank Mandiri | Yen | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | ¥ 8 | 1 | ¥ 7 | 1 | ||||||||||||||||||
Bank Mandiri | Euro | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 1 | 20 | 1 | 17 | ||||||||||||||||||
Bank Mandiri | HKD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | $ 1 | 1 | $ 1 | 2 | ||||||||||||||||||
Bank Mandiri | Australian dollar | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | $ 0 | 0 | $ 0 | 0 | ||||||||||||||||||
BNI | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 791 | 968 | ||||||||||||||||||||
Time deposits | 2,640 | 5,315 | ||||||||||||||||||||
BNI | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 2 | 28 | 1 | 13 | ||||||||||||||||||
Time deposits | 58 | 837 | 9 | 116 | ||||||||||||||||||
BNI | Euro | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | € 0 | 0 | € 0 | 6 | ||||||||||||||||||
BNI | Singapore dollar | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | $ 0 | 0 | $ 0 | 0 | ||||||||||||||||||
BRI | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 728 | 466 | ||||||||||||||||||||
Time deposits | 1,911 | 4,954 | ||||||||||||||||||||
BRI | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 2 | 31 | 6 | 82 | ||||||||||||||||||
Time deposits | 47 | 676 | 15 | 203 | ||||||||||||||||||
BTN | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 342 | 7 | ||||||||||||||||||||
Time deposits | 2,559 | 2,958 | ||||||||||||||||||||
BTN | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 31 | 446 | ||||||||||||||||||||
BJB | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Time deposits | 1,295 | 1,726 | ||||||||||||||||||||
Other related entities | Rupiah | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | 58 | 40 | ||||||||||||||||||||
Time deposits | 1 | 67 | ||||||||||||||||||||
Other related entities | USD | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||
Cash in banks | $ 0 | Rp 0 | $ 0 | Rp 1 |
CASH AND CASH EQUIVALENTS - Int
CASH AND CASH EQUIVALENTS - Interest Rates on Cash and Cash Equivalents (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Rupiah | Minimum | ||
CASH AND CASH EQUIVALENTS | ||
Interest rate on time deposits | 2.60% | 2.85% |
Rupiah | Maximum | ||
CASH AND CASH EQUIVALENTS | ||
Interest rate on time deposits | 9.25% | 8.50% |
Foreign currency | Minimum | ||
CASH AND CASH EQUIVALENTS | ||
Interest rate on time deposits | 0.50% | 0.40% |
Foreign currency | Maximum | ||
CASH AND CASH EQUIVALENTS | ||
Interest rate on time deposits | 3.75% | 3.50% |
OTHER CURRENT FINANCIAL ASSET_2
OTHER CURRENT FINANCIAL ASSETS - Breakdown of other current financial assets by related parties and third parties (Details) Rp in Millions, RM in Millions, $ in Millions, $ in Millions | Dec. 31, 2018MYR (RM) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017AUD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017IDR (Rp) |
OTHER CURRENT FINANCIAL ASSETS | ||||||
Total time deposits | Rp 205,000 | Rp 325,000 | ||||
Available-for-sale financial assets | 470,000 | 1,168,000 | ||||
Other current financial assets | $ 91 | 1,314,000 | 2,173,000 | |||
Rupiah | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Escrow accounts | 136,000 | 318,000 | ||||
Others | 486,000 | 263,000 | ||||
Rupiah | Others | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Total time deposits | 23,000 | |||||
USD | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Escrow accounts | 0 | 1,000 | $ 6 | 78,000 | ||
Others | 0 | 6,000 | ||||
USD | SCB | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Total time deposits | 8 | 116,000 | 8 | 109,000 | ||
USD | UOB | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Total time deposits | 3 | 45,000 | 14 | 191,000 | ||
USD | HSBC | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Total time deposits | $ 3 | 43,000 | ||||
Australian dollar | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Others | $ 0 | 0 | ||||
Malaysian ringgits | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Escrow accounts | RM 5 | 16,000 | $ 5 | 15,000 | ||
Others | 0 | |||||
BNI | Rupiah | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Total time deposits | 1,000 | |||||
BRI | Rupiah | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Total time deposits | 2,000 | |||||
Bahana TCW | Rupiah | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Available-for-sale financial assets | 91,000 | 360,000 | ||||
PT Mandiri Manajemen Investasi | Rupiah | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Available-for-sale financial assets | Rp 379,000 | 711,000 | ||||
Other related entities | Rupiah | ||||||
OTHER CURRENT FINANCIAL ASSETS | ||||||
Available-for-sale financial assets | Rp 97,000 |
OTHER CURRENT FINANCIAL ASSET_3
OTHER CURRENT FINANCIAL ASSETS - Schedule of interest rates on maturities of time deposits (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Rupiah | ||
OTHER CURRENT FINANCIAL ASSETS | ||
Interest rate of time deposits with maturities greater than three months | 5.00% | |
Minimum | Rupiah | ||
OTHER CURRENT FINANCIAL ASSETS | ||
Interest rate of time deposits with maturities greater than three months | 6.00% | |
Minimum | Foreign currency | ||
OTHER CURRENT FINANCIAL ASSETS | ||
Interest rate of time deposits with maturities greater than three months | 1.35% | 1.38% |
Maximum | Rupiah | ||
OTHER CURRENT FINANCIAL ASSETS | ||
Interest rate of time deposits with maturities greater than three months | 7.00% | |
Maximum | Foreign currency | ||
OTHER CURRENT FINANCIAL ASSETS | ||
Interest rate of time deposits with maturities greater than three months | 2.18% | 1.64% |
TRADE AND OTHER RECEIVABLES (De
TRADE AND OTHER RECEIVABLES (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Jan. 01, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
Trade and other receivables | |||||
Trade receivables | Rp 9,301 | Rp 9,222 | |||
Other receivables | 627 | 342 | |||
Total trade and other receivables | $ 690 | 9,928 | 9,564 | ||
Gross or Cost | |||||
Trade and other receivables | |||||
Trade receivables | 14,844 | 13,553 | |||
Other receivables | 782 | 346 | |||
Provision for impairment | |||||
Trade and other receivables | |||||
Trade receivables | (5,543) | (4,331) | Rp (2,990) | ||
Other receivables | Rp (155) | Rp (4) | |||
Total trade and other receivables | Rp (4,520) |
TRADE AND OTHER RECEIVABLES - B
TRADE AND OTHER RECEIVABLES - By debtor (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other receivables | |||
Trade receivables | Rp 9,301 | Rp 9,222 | |
Third parties | |||
Trade and other receivables | |||
Trade receivables | 7,287 | 7,358 | |
Related parties | |||
Trade and other receivables | |||
Trade receivables | 2,014 | 1,864 | |
Gross or Cost | |||
Trade and other receivables | |||
Trade receivables | 14,844 | 13,553 | |
Gross or Cost | Third parties | |||
Trade and other receivables | |||
Trade receivables | 11,469 | 10,806 | |
Gross or Cost | Individual and business subscribers | Third parties | |||
Trade and other receivables | |||
Trade receivables | 10,674 | 9,289 | |
Gross or Cost | Overseas international carriers | Third parties | |||
Trade and other receivables | |||
Trade receivables | 795 | 1,517 | |
Gross or Cost | Related parties | |||
Trade and other receivables | |||
Trade receivables | 3,375 | 2,747 | |
Gross or Cost | State-owned enterprises | |||
Trade and other receivables | |||
Trade receivables | 1,495 | 721 | |
Gross or Cost | Government agencies | |||
Trade and other receivables | |||
Trade receivables | 672 | 519 | |
Gross or Cost | Indonusa | |||
Trade and other receivables | |||
Trade receivables | 522 | 465 | |
Gross or Cost | PT Indosat Tbk (“Indosat”) | |||
Trade and other receivables | |||
Trade receivables | 219 | 372 | |
Gross or Cost | Other related entities | |||
Trade and other receivables | |||
Trade receivables | 467 | 670 | |
Provision for impairment | |||
Trade and other receivables | |||
Trade receivables | (5,543) | (4,331) | Rp (2,990) |
Provision for impairment | Third parties | |||
Trade and other receivables | |||
Trade receivables | (4,182) | (3,448) | |
Provision for impairment | Related parties | |||
Trade and other receivables | |||
Trade receivables | Rp (1,361) | Rp (883) |
TRADE AND OTHER RECEIVABLES -_2
TRADE AND OTHER RECEIVABLES - By age (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other receivables | |||
Trade receivables | Rp 9,301 | Rp 9,222 | |
Third parties | |||
Trade and other receivables | |||
Trade receivables | 7,287 | 7,358 | |
Related parties | |||
Trade and other receivables | |||
Trade receivables | 2,014 | 1,864 | |
Financial assets past due but not impaired | |||
Trade and other receivables | |||
Trade receivables | Rp 3,868 | 3,354 | |
Not past due | |||
Trade and other receivables | |||
ECL rate | 8.10% | ||
Up to 3 months | |||
Trade and other receivables | |||
ECL rate | 16.80% | ||
3 to 6 months | |||
Trade and other receivables | |||
ECL rate | 20.50% | ||
More than 6 months | |||
Trade and other receivables | |||
ECL rate | 88.30% | ||
Gross or Cost | |||
Trade and other receivables | |||
Trade receivables | Rp 14,844 | 13,553 | |
Gross or Cost | Third parties | |||
Trade and other receivables | |||
Trade receivables | 11,469 | 10,806 | |
Gross or Cost | Related parties | |||
Trade and other receivables | |||
Trade receivables | 3,375 | 2,747 | |
Gross or Cost | Not past due | |||
Trade and other receivables | |||
Trade receivables | 5,912 | 6,788 | |
Gross or Cost | Up to 3 months | |||
Trade and other receivables | |||
Trade receivables | 2,244 | 1,426 | |
Gross or Cost | Up to 3 months | Third parties | |||
Trade and other receivables | |||
Trade receivables | 6,066 | 6,493 | |
Gross or Cost | Up to 3 months | Related parties | |||
Trade and other receivables | |||
Trade receivables | 2,090 | 1,721 | |
Gross or Cost | 3 to 6 months | |||
Trade and other receivables | |||
Trade receivables | 1,798 | 788 | |
Gross or Cost | 3 to 6 months | Third parties | |||
Trade and other receivables | |||
Trade receivables | 1,401 | 681 | |
Gross or Cost | 3 to 6 months | Related parties | |||
Trade and other receivables | |||
Trade receivables | 397 | 107 | |
Gross or Cost | More than 6 months | |||
Trade and other receivables | |||
Trade receivables | 4,890 | 4,551 | |
Gross or Cost | More than 6 months | Third parties | |||
Trade and other receivables | |||
Trade receivables | 4,002 | 3,632 | |
Gross or Cost | More than 6 months | Related parties | |||
Trade and other receivables | |||
Trade receivables | 888 | 919 | |
Provision for impairment | |||
Trade and other receivables | |||
Trade receivables | (5,543) | (4,331) | Rp (2,990) |
Provision for impairment | Third parties | |||
Trade and other receivables | |||
Trade receivables | (4,182) | (3,448) | |
Provision for impairment | Related parties | |||
Trade and other receivables | |||
Trade receivables | (1,361) | (883) | |
Provision for impairment | Not past due | |||
Trade and other receivables | |||
Trade receivables | (479) | (920) | |
Provision for impairment | Up to 3 months | |||
Trade and other receivables | |||
Trade receivables | (377) | (281) | |
Provision for impairment | 3 to 6 months | |||
Trade and other receivables | |||
Trade receivables | (368) | (258) | |
Provision for impairment | More than 6 months | |||
Trade and other receivables | |||
Trade receivables | Rp (4,319) | Rp (2,872) |
TRADE AND OTHER RECEIVABLES -_3
TRADE AND OTHER RECEIVABLES - By currency (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other receivables | |||
Trade receivables | Rp 9,301 | Rp 9,222 | |
Gross or Cost | |||
Trade and other receivables | |||
Trade receivables | 14,844 | 13,553 | |
Provision for impairment | |||
Trade and other receivables | |||
Trade receivables | (5,543) | (4,331) | Rp (2,990) |
Related parties | |||
Trade and other receivables | |||
Trade receivables | 2,014 | 1,864 | |
Related parties | Gross or Cost | |||
Trade and other receivables | |||
Trade receivables | 3,375 | 2,747 | |
Related parties | Gross or Cost | Rupiah | |||
Trade and other receivables | |||
Trade receivables | 3,368 | 2,706 | |
Related parties | Gross or Cost | USD | |||
Trade and other receivables | |||
Trade receivables | 7 | 41 | |
Related parties | Gross or Cost | Others | |||
Trade and other receivables | |||
Trade receivables | 0 | 0 | |
Related parties | Provision for impairment | |||
Trade and other receivables | |||
Trade receivables | (1,361) | (883) | |
Third parties | |||
Trade and other receivables | |||
Trade receivables | 7,287 | 7,358 | |
Third parties | Gross or Cost | |||
Trade and other receivables | |||
Trade receivables | 11,469 | 10,806 | |
Third parties | Gross or Cost | Rupiah | |||
Trade and other receivables | |||
Trade receivables | 9,977 | 9,781 | |
Third parties | Gross or Cost | USD | |||
Trade and other receivables | |||
Trade receivables | 1,372 | 968 | |
Third parties | Gross or Cost | Malaysian ringgits | |||
Trade and other receivables | |||
Trade receivables | 82 | 16 | |
Third parties | Gross or Cost | Others | |||
Trade and other receivables | |||
Trade receivables | 38 | 41 | |
Third parties | Provision for impairment | |||
Trade and other receivables | |||
Trade receivables | Rp (4,182) | Rp (3,448) |
TRADE AND OTHER RECEIVABLES - C
TRADE AND OTHER RECEIVABLES - Changes in Provision for expected credit losses (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Provision of impairment | ||
Beginning balance | Rp (9,222) | |
Ending balance | (9,301) | Rp (9,222) |
Provision for impairment | ||
Provision of impairment | ||
Beginning balance | 4,331 | 2,990 |
Adjustment on initial application of IFRS 9 | 159 | |
Provision for impairment of receivables | 2,079 | 1,494 |
Receivables written off | (1,026) | (153) |
Ending balance | Rp 5,543 | Rp 4,331 |
TRADE AND OTHER RECEIVABLES - P
TRADE AND OTHER RECEIVABLES - Pledge (Details) Rp in Billions | Dec. 31, 2018IDR (Rp) |
Trade and other receivables, net | |
Trade and other receivables | |
Assets pledged as collateral | Rp 7,116 |
CONTRACT ASSETS (Details)
CONTRACT ASSETS (Details) Rp in Millions | Dec. 31, 2018IDR (Rp) |
CONTRACT ASSETS | |
Contract assets | Rp 1,560 |
Provision for expected credit losses | Rp 38,000 |
INVENTORIES - (Details)
INVENTORIES - (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
INVENTORIES | ||||
Total current inventories | $ 50 | Rp 717 | Rp 631 | |
Gross or Cost | ||||
INVENTORIES | ||||
Components | 429 | 447 | ||
SIM cards and blank prepaid vouchers | 137 | 168 | ||
Others | 218 | 69 | ||
Total current inventories | 784 | 684 | ||
Provision for impairment | ||||
INVENTORIES | ||||
Components | (38) | (24) | ||
SIM cards and blank prepaid vouchers | (28) | (29) | ||
Others | (1) | 0 | ||
Total current inventories | Rp (67) | Rp (53) | Rp (47) |
INVENTORIES - Provision for obs
INVENTORIES - Provision for obsolescence (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
Provision for obsolescence | ||||
Beginning balance | Rp (631) | |||
Ending balance | $ (50) | (717) | Rp (631) | |
inventory recognized as expense | 2,726 | 2,458 | Rp 2,105 | |
Inventories pledged as security for liabilities | 235 | |||
Modules and components | 125 | 143 | ||
Modules and components, insured amount | 176 | 256 | ||
Provision for impairment | ||||
Provision for obsolescence | ||||
Beginning balance | 53 | 47 | ||
Provision recognised during the year | 22 | 6 | ||
Reversal of inventory write-down | (8) | |||
Ending balance | Rp 67 | Rp 53 | Rp 47 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
OTHER CURRENT ASSETS | ||
Frequency license | Rp 3,636 | Rp 3,760 |
Advances | 1,803 | 1,156 |
Prepaid rental | 1,382 | 1,349 |
Prepaid salaries | 200 | 227 |
Advance to employee | 30 | 35 |
Others | 229 | 656 |
Total | Rp 7,280 | Rp 7,183 |
CONTRACT COSTS (Details)
CONTRACT COSTS (Details) Rp in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | |
Movement of contract costs | ||||
Beginning balance | Rp 1,096,000 | |||
Amortisation during the year | (1,156,000) | |||
Addition current year | 1,304,000 | |||
Ending balance | 1,244,000 | |||
Short term portion | $ (64) | Rp (924,000) | ||
Long term portion | $ 22 | 320,000 | ||
Provision for impairment of contract costs | 0 | Rp 0 | ||
Cost to obtain contracts | ||||
Movement of contract costs | ||||
Beginning balance | 193,000 | |||
Amortisation during the year | (62,000) | |||
Addition current year | 274,000 | |||
Ending balance | 405,000 | |||
Short term portion | (85,000) | |||
Long term portion | 320,000 | |||
Cost to fulfill | ||||
Movement of contract costs | ||||
Beginning balance | 903,000 | |||
Amortisation during the year | (1,094,000) | |||
Addition current year | 1,030,000 | |||
Ending balance | Rp 839,000 | |||
Short term portion | Rp (839,000) |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
LONG-TERM INVESTMENTS | ||||
Beginning balance | Rp 1,839 | Rp 1,789 | ||
Additions (deductions) | 84 | 18 | ||
Share of net profit (loss) | $ 4 | 53 | 61 | Rp 88 |
Dividend | (1) | (9) | (28) | (23) |
Share of other comprehensive income | (14) | 1 | ||
Ending balance | 1,953 | 1,839 | 1,789 | |
Beginning balance | 309 | 58 | ||
Adjustment on Initial application of IFRS 9 | 69 | |||
Additions (deductions) | 253 | 251 | ||
Changes of Fair Value, net | 78 | |||
Share of other comprehensive income | 0 | |||
Ending balance | 709 | 309 | 58 | |
Beginning balance | 2,148 | 1,847 | ||
Adjustment on Initial application of IFRS 9 | 69 | |||
Additions (Deductions) | 337 | 269 | ||
Changes of Fair Value | 78 | |||
Ending balance | $ 185 | Rp 2,662 | Rp 2,148 | 1,847 |
Tiphone | ||||
LONG-TERM INVESTMENTS | ||||
Percentage of ownership | 24.00% | 24.00% | 24.00% | |
Beginning balance | Rp 1,539 | Rp 1,488 | ||
Share of net profit (loss) | 87 | 80 | ||
Dividend | (9) | (28) | ||
Share of other comprehensive income | (15) | 1 | ||
Ending balance | Rp 1,602 | Rp 1,539 | 1,488 | |
Indonusa | ||||
LONG-TERM INVESTMENTS | ||||
Percentage of ownership | 20.00% | 20.00% | 20.00% | |
Beginning balance | Rp 221 | Rp 221 | ||
Share of net profit (loss) | (11) | |||
Ending balance | Rp 210 | Rp 221 | 221 | |
Teltranet | ||||
LONG-TERM INVESTMENTS | ||||
Percentage of ownership | 51.00% | 51.00% | 51.00% | |
Beginning balance | Rp 18 | Rp 38 | ||
Share of net profit (loss) | (19) | (20) | ||
Share of other comprehensive income | 1 | |||
Ending balance | Rp 0 | Rp 18 | 38 | |
ILCS | ||||
LONG-TERM INVESTMENTS | ||||
Percentage of ownership | 49.00% | 49.00% | 49.00% | |
Beginning balance | Rp 43 | Rp 42 | ||
Share of net profit (loss) | 1 | 1 | ||
Dividend | 0 | |||
Share of other comprehensive income | 0 | |||
Ending balance | Rp 44 | Rp 43 | Rp 42 | |
GSN | ||||
LONG-TERM INVESTMENTS | ||||
Percentage of ownership | 45.00% | 45.00% | 45.00% | |
Beginning balance | Rp 14 | |||
Additions (deductions) | Rp 14 | |||
Share of net profit (loss) | 0 | 0 | ||
Ending balance | 14 | 14 | ||
Others | ||||
LONG-TERM INVESTMENTS | ||||
Beginning balance | 4 | |||
Additions (deductions) | 84 | 4 | ||
Share of net profit (loss) | (5) | 0 | ||
Dividend | 0 | |||
Share of other comprehensive income | 0 | 0 | ||
Ending balance | Rp 83 | Rp 4 | ||
Minimum | Others | ||||
LONG-TERM INVESTMENTS | ||||
Percentage of ownership | 25.00% | 25.00% | 25.00% | |
Maximum | Others | ||||
LONG-TERM INVESTMENTS | ||||
Percentage of ownership | 32.00% | 32.00% | 49.00% |
LONG-TERM INVESTMENTS - Stateme
LONG-TERM INVESTMENTS - Statements of financial position (Details) $ in Millions, Rp in Billions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2018IDR (Rp) |
Statements of financial position | ||||||
Current assets | $ 2,977 | Rp 47,561 | Rp 42,843 | |||
Non-current assets | 11,339 | 150,624 | 163,057 | |||
Current liabilities | (3,221) | (45,376) | (46,322) | |||
Non-current liabilities | (2,960) | (40,978) | (42,572) | |||
Statements of profit or loss and other comprehensive income | ||||||
Operating expenses | Rp (92,255) | (84,354) | Rp (77,161) | |||
Profit before income tax | 2,510 | 36,077 | 42,628 | 38,166 | ||
Income tax expense – net | Rp (9,366) | (652) | (9,366) | (9,958) | (9,017) | |
Profit for the year from continuing operations | 1,858 | 26,711 | 32,670 | 29,149 | ||
Other comprehensive income (loss) | 344 | 4,954 | (2,332) | (2,099) | ||
Net comprehensive income for the year | $ 2,202 | 31,665 | 30,338 | Rp 27,050 | ||
Tiphone | ||||||
Statements of financial position | ||||||
Current assets | 8,084 | 7,615 | ||||
Non-current assets | 994 | 892 | ||||
Current liabilities | (2,107) | (1,466) | ||||
Non-current liabilities | (3,255) | (3,062) | ||||
Equity (deficit) | 3,716 | 3,979 | ||||
Statements of profit or loss and other comprehensive income | ||||||
Revenues | 29,228 | 27,914 | ||||
Operating expenses | (28,337) | (27,217) | ||||
Other income (expenses) including finance costs - net | (391) | (246) | ||||
Profit before income tax | 500 | 451 | ||||
Income tax expense – net | (138) | (116) | ||||
Profit for the year from continuing operations | 362 | 335 | ||||
Other comprehensive income (loss) | (63) | (3) | ||||
Net comprehensive income for the year | 299 | 332 | ||||
Indonusa | ||||||
Statements of financial position | ||||||
Current assets | 307 | 449 | ||||
Non-current assets | 415 | 310 | ||||
Current liabilities | (877) | (572) | ||||
Non-current liabilities | (177) | (297) | ||||
Equity (deficit) | (332) | (110) | ||||
Statements of profit or loss and other comprehensive income | ||||||
Revenues | 824 | 692 | ||||
Operating expenses | (583) | (333) | ||||
Other income (expenses) including finance costs - net | (39) | (364) | ||||
Profit before income tax | 202 | (5) | ||||
Income tax expense – net | (55) | |||||
Profit for the year from continuing operations | 147 | (5) | ||||
Other comprehensive income (loss) | (2) | |||||
Net comprehensive income for the year | 145 | (5) | ||||
Teltranet | ||||||
Statements of financial position | ||||||
Current assets | 174 | 269 | ||||
Non-current assets | 101 | 116 | ||||
Current liabilities | (149) | (269) | ||||
Non-current liabilities | (90) | (138) | ||||
Equity (deficit) | 36 | (22) | ||||
Statements of profit or loss and other comprehensive income | ||||||
Revenues | 206 | 209 | ||||
Operating expenses | (264) | (255) | ||||
Other income (expenses) including finance costs - net | (13) | (5) | ||||
Profit before income tax | (71) | (51) | ||||
Income tax expense – net | 12 | 13 | ||||
Profit for the year from continuing operations | (59) | (38) | ||||
Other comprehensive income (loss) | 1 | 0 | ||||
Net comprehensive income for the year | (58) | (38) | ||||
ILCS | ||||||
Statements of financial position | ||||||
Current assets | 145 | 132 | ||||
Non-current assets | 32 | 47 | ||||
Current liabilities | (87) | (87) | ||||
Non-current liabilities | (2) | (2) | ||||
Equity (deficit) | 88 | 90 | ||||
Statements of profit or loss and other comprehensive income | ||||||
Revenues | 164 | 122 | ||||
Operating expenses | (162) | (116) | ||||
Other income (expenses) including finance costs - net | 1 | (4) | ||||
Profit before income tax | 3 | 2 | ||||
Income tax expense – net | (1) | 1 | ||||
Profit for the year from continuing operations | 2 | 3 | ||||
Other comprehensive income (loss) | 0 | |||||
Net comprehensive income for the year | 2 | 3 | ||||
GSN | ||||||
Statements of financial position | ||||||
Current assets | 1 | 15 | ||||
Non-current assets | 185 | 169 | ||||
Current liabilities | (27) | (1) | ||||
Non-current liabilities | (129) | (152) | ||||
Equity (deficit) | 30 | 31 | ||||
Statements of profit or loss and other comprehensive income | ||||||
Revenues | 5 | |||||
Operating expenses | (5) | 0 | ||||
Other income (expenses) including finance costs - net | 0 | |||||
Profit before income tax | 0 | 0 | ||||
Profit for the year from continuing operations | 0 | 0 | ||||
Net comprehensive income for the year | 0 | 0 | ||||
Others | ||||||
Statements of financial position | ||||||
Current assets | 190 | 223 | ||||
Non-current assets | 606 | 644 | ||||
Current liabilities | (724) | (687) | ||||
Non-current liabilities | (1,882) | (1,883) | ||||
Equity (deficit) | (1,810) | Rp (1,703) | ||||
Statements of profit or loss and other comprehensive income | ||||||
Revenues | 117 | 106 | ||||
Operating expenses | (279) | (287) | ||||
Other income (expenses) including finance costs - net | (43) | (19) | ||||
Profit before income tax | (205) | (200) | ||||
Income tax expense – net | (1) | |||||
Profit for the year from continuing operations | (206) | (200) | ||||
Net comprehensive income for the year | Rp (206) | Rp (200) |
LONG-TERM INVESTMENTS - State_2
LONG-TERM INVESTMENTS - Statements of financial position - Other Information (Details) Rp / shares in Units, $ in Millions, Rp in Billions | Sep. 18, 2014IDR (Rp) | Apr. 29, 2014IDR (Rp) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp)Rp / shares | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp)Rp / shares | Dec. 31, 2016IDR (Rp) | Dec. 31, 2013 | May 31, 2013Rp / shares |
LONG-TERM INVESTMENTS | |||||||||
Price per share | Rp / shares | Rp 10,714 | ||||||||
Assets | Rp 198,185 | $ 14,316 | Rp 205,900 | ||||||
Liabilities | Rp (86,354) | $ (6,181) | (88,894) | ||||||
Proportionate share of net assets percentage | 24.00% | 24.00% | |||||||
Carrying amount of long-term investment | Rp 1,839 | 1,953 | Rp 1,789 | ||||||
Indonusa | |||||||||
LONG-TERM INVESTMENTS | |||||||||
Percentage of ownership | 15.67% | ||||||||
Indonusa | |||||||||
LONG-TERM INVESTMENTS | |||||||||
Increase of issued and fully paid capital | Rp 80 | ||||||||
Metra | Indonusa | |||||||||
LONG-TERM INVESTMENTS | |||||||||
Percentage of ownership | 4.33% | ||||||||
Tiphone | |||||||||
LONG-TERM INVESTMENTS | |||||||||
Percentage of ownership | 24.00% | 24.00% | |||||||
Purchase of interest in associates | Rp 1,395 | ||||||||
Fair value of the investment | Rp 1,755 | Rp 1,649 | |||||||
Price per share | Rp / shares | Rp 1,000 | Rp 940 | |||||||
Assets | Rp 9,078 | Rp 8,507 | |||||||
Liabilities | (5,362) | (4,528) | |||||||
Equity (deficit) | 3,716 | 3,979 | |||||||
Group’s proportionate share of net assets (24.00% in 2017 and 2018) | 892 | 955 | |||||||
Goodwill | 647 | 647 | |||||||
Carrying amount of long-term investment | Rp 1,539 | 1,602 | 1,488 | ||||||
Percentage of ownership interest acquired | 25.00% | ||||||||
Indonusa | |||||||||
LONG-TERM INVESTMENTS | |||||||||
Percentage of ownership | 20.00% | 20.00% | |||||||
Equity (deficit) | Rp (332) | (110) | |||||||
Carrying amount of long-term investment | Rp 221 | 210 | 221 | ||||||
Percentage of ownership interest sold | 80.00% | ||||||||
Teltranet | |||||||||
LONG-TERM INVESTMENTS | |||||||||
Percentage of ownership | 51.00% | 51.00% | |||||||
Equity (deficit) | Rp 36 | (22) | |||||||
Carrying amount of long-term investment | 18 | 0 | Rp 38 | ||||||
Unrecognized share of losses | Rp 11 | ||||||||
Others | |||||||||
LONG-TERM INVESTMENTS | |||||||||
Equity (deficit) | (1,810) | (1,703) | |||||||
Carrying amount of long-term investment | Rp 4 | 83 | |||||||
Cumulative unrecognized share of losses | Rp 263 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) $ in Millions, Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | |
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | Rp 129,872 | Rp 114,230 | |
Ending balance | $ 9,938 | 142,912 | 129,872 |
Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 267,251 | 248,099 | |
Business acquisition | 179 | 732 | |
Additions | 33,620 | 33,154 | |
Deductions | (9,391) | (9,673) | |
Reclassifications/Translations | (11,215) | (5,061) | |
Ending balance | 280,444 | 267,251 | |
Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (137,379) | (133,869) | |
Additions | 20,158 | 19,383 | |
Deductions | 8,504 | 8,498 | |
Reclassifications/Translations | 11,501 | 7,375 | |
Ending balance | (137,532) | (137,379) | |
Land rights | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 1,519 | 1,417 | |
Business acquisition | 46 | 40 | |
Additions | 39 | 62 | |
Reclassifications/Translations | 22 | ||
Ending balance | 1,626 | 1,519 | |
Land rights | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (299) | (268) | |
Additions | 36 | 31 | |
Ending balance | (335) | (299) | |
Buildings | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 9,802 | 7,837 | |
Business acquisition | 43 | 39 | |
Additions | 67 | 211 | |
Deductions | (1) | (3) | |
Reclassifications/Translations | 1,922 | 1,718 | |
Ending balance | 11,833 | 9,802 | |
Buildings | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (2,880) | (2,435) | |
Additions | 513 | 407 | |
Deductions | 1 | ||
Reclassifications/Translations | (13) | (38) | |
Ending balance | (3,405) | (2,880) | |
Leasehold improvements | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 1,257 | 1,116 | |
Additions | 23 | 34 | |
Deductions | (24) | (25) | |
Reclassifications/Translations | 119 | 132 | |
Ending balance | 1,375 | 1,257 | |
Leasehold improvements | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (823) | (692) | |
Additions | 150 | 149 | |
Deductions | 24 | 23 | |
Reclassifications/Translations | (5) | ||
Ending balance | (949) | (823) | |
Switching equipment | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 18,512 | 20,539 | |
Business acquisition | 69 | ||
Additions | 818 | 556 | |
Deductions | (1,920) | (977) | |
Reclassifications/Translations | (2,070) | (1,675) | |
Ending balance | 15,340 | 18,512 | |
Switching equipment | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (14,595) | (16,690) | |
Additions | 1,309 | 1,393 | |
Deductions | 1,920 | 977 | |
Reclassifications/Translations | 3,390 | 2,511 | |
Ending balance | (10,594) | (14,595) | |
Telegraph, telex and data communication equipment | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 1,583 | 1,586 | |
Additions | 3 | ||
Reclassifications/Translations | (3) | ||
Ending balance | 1,586 | 1,583 | |
Telegraph, telex and data communication equipment | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (802) | (333) | |
Additions | 518 | 416 | |
Reclassifications/Translations | (53) | ||
Ending balance | (1,320) | (802) | |
Transmission installation and equipment | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 139,381 | 126,908 | |
Additions | 3,287 | 2,648 | |
Deductions | (6,398) | (4,489) | |
Reclassifications/Translations | 10,743 | 14,314 | |
Ending balance | 147,013 | 139,381 | |
Transmission installation and equipment | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (71,881) | (64,365) | |
Additions | 11,561 | 11,213 | |
Deductions | 5,579 | 3,642 | |
Reclassifications/Translations | 372 | 55 | |
Ending balance | (77,491) | (71,881) | |
Satellite, earth station and equipment | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 9,300 | 8,445 | |
Business acquisition | 573 | ||
Additions | 2,414 | 1,233 | |
Deductions | (3) | (2,202) | |
Reclassifications/Translations | 261 | 1,251 | |
Ending balance | 11,972 | 9,300 | |
Satellite, earth station and equipment | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (4,334) | (7,098) | |
Additions | 677 | 595 | |
Deductions | 3 | 2,202 | |
Reclassifications/Translations | 3 | 1,157 | |
Ending balance | (5,005) | (4,334) | |
Cable network | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 47,354 | 44,990 | |
Additions | 5,887 | 5,715 | |
Deductions | (36) | (694) | |
Reclassifications/Translations | (7,555) | (2,657) | |
Ending balance | 45,650 | 47,354 | |
Cable network | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (18,052) | (20,494) | |
Additions | 2,084 | 2,003 | |
Deductions | 36 | 693 | |
Reclassifications/Translations | 7,718 | 3,752 | |
Ending balance | (12,382) | (18,052) | |
Power supply | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 16,494 | 15,237 | |
Business acquisition | 13 | ||
Additions | 484 | 222 | |
Deductions | (277) | (456) | |
Reclassifications/Translations | 1,275 | 1,491 | |
Ending balance | 17,989 | 16,494 | |
Power supply | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (11,274) | (10,262) | |
Additions | 1,375 | 1,296 | |
Deductions | 267 | 286 | |
Reclassifications/Translations | (7) | (2) | |
Ending balance | (12,389) | (11,274) | |
Data processing equipment | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 13,377 | 12,599 | |
Business acquisition | 23 | ||
Additions | 140 | 715 | |
Deductions | (622) | (603) | |
Reclassifications/Translations | 1,348 | 666 | |
Ending balance | 14,266 | 13,377 | |
Data processing equipment | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (10,312) | (9,512) | |
Additions | 1,047 | 1,401 | |
Deductions | 601 | 582 | |
Reclassifications/Translations | 10 | 19 | |
Ending balance | (10,748) | (10,312) | |
Other telecommunication peripherals | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 1,661 | 702 | |
Additions | 1,765 | 966 | |
Deductions | (7) | ||
Reclassifications/Translations | (1) | ||
Ending balance | 3,425 | 1,661 | |
Other telecommunication peripherals | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (603) | (462) | |
Additions | 428 | 149 | |
Deductions | 7 | ||
Reclassifications/Translations | 1 | 1 | |
Ending balance | (1,030) | (603) | |
Office equipment | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 1,637 | 1,529 | |
Business acquisition | 46 | 11 | |
Additions | 475 | 327 | |
Deductions | (86) | (84) | |
Reclassifications/Translations | 86 | (146) | |
Ending balance | 2,158 | 1,637 | |
Office equipment | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (1,116) | (940) | |
Additions | 334 | 215 | |
Deductions | 72 | 65 | |
Reclassifications/Translations | (4) | (26) | |
Ending balance | (1,382) | (1,116) | |
Vehicles | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 840 | 522 | |
Business acquisition | 6 | ||
Additions | 379 | 355 | |
Deductions | (1) | (37) | |
Reclassifications/Translations | (5) | ||
Ending balance | 1,219 | 840 | |
Vehicles | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (292) | (200) | |
Additions | 122 | 113 | |
Deductions | 1 | 21 | |
Reclassifications/Translations | 6 | ||
Ending balance | (407) | (292) | |
CPE assets | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 22 | 22 | |
Ending balance | 22 | 22 | |
CPE assets | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (20) | (19) | |
Additions | 1 | ||
Ending balance | (20) | (20) | |
Other equipment | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 97 | 100 | |
Additions | 18 | ||
Reclassifications/Translations | (21) | (3) | |
Ending balance | 94 | 97 | |
Other equipment | Accumulated depreciation, amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | (96) | (99) | |
Additions | 4 | 1 | |
Reclassifications/Translations | 25 | 4 | |
Ending balance | (75) | (96) | |
Property under construction | Gross or Cost | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Beginning balance | 4,415 | 4,550 | |
Business acquisition | 2 | ||
Additions | 17,821 | 20,110 | |
Deductions | (23) | (96) | |
Reclassifications/Translations | (17,339) | (20,149) | |
Ending balance | Rp 4,876 | Rp 4,415 |
PROPERTY AND EQUIPMENT - Gain o
PROPERTY AND EQUIPMENT - Gain on disposal or sale of property and equipment (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PROPERTY AND EQUIPMENT. | |||
Proceeds from sale of property and equipment | Rp 629 | Rp 1,367 | Rp 765 |
Net book value | (1) | (1,009) | (152) |
Gain on sale of property and equipment | Rp 628 | Rp 358 | Rp 613 |
PROPERTY AND EQUIPMENT - Cash g
PROPERTY AND EQUIPMENT - Cash generating units (Details) $ in Millions, Rp in Billions | 12 Months Ended | ||||
Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
Cash generating units | |||||
Derecognized assets | $ 9,938 | Rp 142,912 | Rp 129,872 | Rp 114,230 | |
Gross or Cost | |||||
Cash generating units | |||||
Derecognized assets | Rp 280,444 | 267,251 | Rp 248,099 | ||
Fixed wireless business | Gross or Cost | |||||
Cash generating units | |||||
Derecognized assets | Rp 3,193 | ||||
Others | |||||
Cash generating units | |||||
Impairment loss | Rp 0 |
PROPERTY AND EQUIPMENT - Equipm
PROPERTY AND EQUIPMENT - Equipment units under modernization program (Details) RM in Millions, $ in Millions, $ in Millions, $ in Millions, Rp in Billions | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2018SGD ($) | Dec. 31, 2018HKD ($) | Dec. 31, 2018MYR (RM) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | |
Equipment units under modernization program | |||||||||||
Proceeds from insurance claims | $ (11) | Rp (153) | Rp (155) | Rp (60) | |||||||
Property and equipment | 129,872 | 114,230 | $ 9,938 | Rp 142,912 | |||||||
Assets held for sale | 10 | 24 | 340 | ||||||||
Property and equipment excluding land rights insured amount | $ 225 | $ 9 | RM 37 | $ 47 | 16,059 | ||||||
First loss basis | 2,760 | ||||||||||
Pledged as collateral under lending agreements | 8,077 | ||||||||||
Depreciated property and equipment still used in operations | Rp 50,633 | ||||||||||
Lease term | 10 years | 10 years | |||||||||
Property under construction | |||||||||||
Equipment units under modernization program | |||||||||||
Interest capitalized | Rp 271 | 328 | 444 | ||||||||
Foreign exchange loss capitalized | 0 | 0 | 0 | ||||||||
Percentage of completion of property under construction | 62.80% | 62.80% | 62.80% | 62.80% | 62.80% | ||||||
Lost and broken equipment | |||||||||||
Equipment units under modernization program | |||||||||||
Proceeds from insurance claims | 153 | 155 | 77 | ||||||||
Property and equipment | 7 | Rp 19 | Rp 51 | ||||||||
Property and equipment excluding land rights | |||||||||||
Equipment units under modernization program | |||||||||||
Property and equipment | 134,586 | ||||||||||
Telkom-1 Satellite | |||||||||||
Equipment units under modernization program | |||||||||||
Acquisition cost and accumulated depreciation | 1,165 | ||||||||||
Ericsson AB and Huawei | |||||||||||
Equipment units under modernization program | |||||||||||
Property plant and equipment exchanged | 816 | ||||||||||
Network Indonesia | |||||||||||
Equipment units under modernization program | |||||||||||
Property plant and equipment exchanged | 777 | ||||||||||
Telkomsel | |||||||||||
Equipment units under modernization program | |||||||||||
Property and equipment | 620 | 341 | |||||||||
Depreciation expense | 378 | ||||||||||
Telkomsel | Buildings and Transmissions | |||||||||||
Equipment units under modernization program | |||||||||||
Reduction in depreciation expense | 925 | ||||||||||
Telkomsel | Buildings and Transmissions | Less than one year | |||||||||||
Equipment units under modernization program | |||||||||||
Increase (Decrease) | 135 | ||||||||||
Telkomsel | Buildings | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 40 years | 20 years | |||||||||
Telkomsel | Transmissions | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 10 years | ||||||||||
Telkomsel | Copper cable network asset | |||||||||||
Equipment units under modernization program | |||||||||||
Property and equipment | 1 | ||||||||||
Property plant and equipment exchanged | Rp 0 | ||||||||||
Telkomsel | Fiber optic network asset | |||||||||||
Equipment units under modernization program | |||||||||||
Property and equipment | Rp 506 | Rp 0 | |||||||||
Telkomsel | Radio software license | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 10 years | 10 years | 7 years | ||||||||
Telkomsel | Radio software license | Less than one year | |||||||||||
Equipment units under modernization program | |||||||||||
Increase (Decrease) | Rp 637 | ||||||||||
Telkomsel | Radio software license | 1-2 years | |||||||||||
Equipment units under modernization program | |||||||||||
Increase (Decrease) | 266 | ||||||||||
Telkomsel | Radio software license | 2-3 years | |||||||||||
Equipment units under modernization program | |||||||||||
Increase (Decrease) | 18 | ||||||||||
Telkomsel | Radio software license | 3-4 years | |||||||||||
Equipment units under modernization program | |||||||||||
Increase (Decrease) | Rp (106) | ||||||||||
Telkomsel | Data processing equipment | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 5 years | 5 years | 3 years | ||||||||
Minimum | Property under construction | |||||||||||
Equipment units under modernization program | |||||||||||
Interest capitalized rate | 9.68% | 9.68% | 8.15% | 10.20% | |||||||
Minimum | Buildings | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 15 years | 15 years | |||||||||
Minimum | Satellite, earth station and equipment | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 3 years | 3 years | |||||||||
Minimum | Data processing equipment | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 3 years | 3 years | |||||||||
Minimum | Telkomsel | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 10 years | 10 years | |||||||||
Minimum | Telkomsel | Transmissions | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 15 years | ||||||||||
Maximum | Property under construction | |||||||||||
Equipment units under modernization program | |||||||||||
Interest capitalized rate | 11.00% | 11.00% | 11.00% | 11.00% | |||||||
Maximum | Buildings | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 40 years | 40 years | |||||||||
Maximum | Satellite, earth station and equipment | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 20 years | 20 years | |||||||||
Maximum | Data processing equipment | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 20 years | 20 years | |||||||||
Maximum | Telkomsel | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 45 years | 45 years | |||||||||
Maximum | Telkomsel | Transmissions | |||||||||||
Equipment units under modernization program | |||||||||||
Estimated useful lives of property and equipment | 20 years |
PROPERTY AND EQUIPMENT - Future
PROPERTY AND EQUIPMENT - Future minimum lease payments required for assets under finance leases (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Future minimum lease payments | ||
Total minimum lease payments | Rp 3,764 | Rp 4,685 |
Interest | (619) | (881) |
Net present value of minimum lease payments | 3,145 | 3,804 |
Current maturities (Note 18b) | (807) | (794) |
Long-term portion (Note 19) | 2,338 | 3,010 |
Less than one year | ||
Future minimum lease payments | ||
Total minimum lease payments | 1,083 | |
1-2 years | ||
Future minimum lease payments | ||
Total minimum lease payments | 1,049 | 969 |
2-3 years | ||
Future minimum lease payments | ||
Total minimum lease payments | 945 | 866 |
3-4 years | ||
Future minimum lease payments | ||
Total minimum lease payments | 781 | 778 |
4-5 years | ||
Future minimum lease payments | ||
Total minimum lease payments | 605 | 605 |
5-6 years | ||
Future minimum lease payments | ||
Total minimum lease payments | 254 | 254 |
Later than six years | ||
Future minimum lease payments | ||
Total minimum lease payments | Rp 130 | Rp 130 |
PROPERTY AND EQUIPMENT - Obliga
PROPERTY AND EQUIPMENT - Obligations under finance leases (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Obligations under finance leases | ||
Total | Rp 3,145 | Rp 3,804 |
PT Tower Bersama Infrastructure Tbk | ||
Obligations under finance leases | ||
Total | 1,089 | 1,293 |
PT Profesional Telekomunikasi Indonesia | ||
Obligations under finance leases | ||
Total | 930 | 1,120 |
PT Mandiri Utama Finance | ||
Obligations under finance leases | ||
Total | 186 | 198 |
PT Solusi Tunas Pratama | ||
Obligations under finance leases | ||
Total | 181 | 212 |
PT Putra Arga Binangun | ||
Obligations under finance leases | ||
Total | 159 | 189 |
PT Mitsubishi UFJ Lease and Finance Indonesia | ||
Obligations under finance leases | ||
Total | 103 | 135 |
PT Bali Towerindo Sentra | ||
Obligations under finance leases | ||
Total | 86 | 100 |
Others (each below Rp75 billion) | ||
Obligations under finance leases | ||
Total | Rp 411 | Rp 557 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
OTHER NON-CURRENT ASSETS | |||
Prepaid other taxes - net of current portion (Note 30) | Rp 2,698 | Rp 3,075 | |
Prepaid rental - net of current portion (Note 9) | 2,662 | 2,688 | |
Frequency license - net of current portion (Note 9) | 1,743 | 2,019 | |
Prepaid income taxes - net of current portion (Note 30) | 894 | 763 | |
Deferred charges | 474 | 413 | |
Advances for purchases of property and equipment | 387 | 2,805 | |
Convertible bonds | 213 | 64 | |
Restricted cash | 183 | 31 | |
Security deposit | 173 | 116 | |
Others | 227 | 296 | |
Total | $ 672 | Rp 9,654 | Rp 12,270 |
OTHER NON-CURRENT ASSETS - Leas
OTHER NON-CURRENT ASSETS - Lease agreement and deferred charges (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Obligations under finance leases | |||
Total amortization of deferred charges | Rp 56 | Rp 46 | Rp 40 |
Minimum | |||
Obligations under finance leases | |||
Remaining rental periods | 1 year | ||
Maximum | |||
Obligations under finance leases | |||
Remaining rental periods | 40 years |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) $ in Millions, Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp)Y | Dec. 31, 2017IDR (Rp) | |
Reconciliation of intangible assets | |||
Beginning Balance | Rp 3,530 | ||
Ending Balance | $ 350 | 5,032 | Rp 3,530 |
Fully amortised intangible assets still in use | 4,463 | ||
Goodwill | |||
Reconciliation of intangible assets | |||
Beginning Balance | 659 | ||
Ending Balance | 1,045 | 659 | |
Software | |||
Reconciliation of intangible assets | |||
Beginning Balance | 2,673 | ||
Ending Balance | Rp 3,784 | 2,673 | |
Software | Minimum | |||
Reconciliation of intangible assets | |||
Remaining amortization periods | Y | 1 | ||
Software | Maximum | |||
Reconciliation of intangible assets | |||
Remaining amortization periods | Y | 5 | ||
License | |||
Reconciliation of intangible assets | |||
Beginning Balance | Rp 13 | ||
Ending Balance | 13 | 13 | |
Other intangible assets | |||
Reconciliation of intangible assets | |||
Beginning Balance | 185 | ||
Ending Balance | 190 | 185 | |
Gross or Cost | |||
Reconciliation of intangible assets | |||
Beginning Balance | 9,786 | 8,353 | |
Additions | 2,361 | 1,313 | |
Acquisition | 425 | 236 | |
Deductions | (62) | (136) | |
Reclassifications/translations | 17 | 20 | |
Ending Balance | 12,527 | 9,786 | |
Gross or Cost | Goodwill | |||
Reconciliation of intangible assets | |||
Beginning Balance | 680 | 449 | |
Acquisition | 422 | 232 | |
Deductions | (3) | ||
Reclassifications/translations | (36) | 2 | |
Ending Balance | 1,066 | 680 | |
Gross or Cost | Software | |||
Reconciliation of intangible assets | |||
Beginning Balance | 8,387 | 7,222 | |
Additions | 2,328 | 1,289 | |
Acquisition | 1 | 4 | |
Deductions | (51) | (122) | |
Reclassifications/translations | 15 | (6) | |
Ending Balance | 10,680 | 8,387 | |
Gross or Cost | License | |||
Reconciliation of intangible assets | |||
Beginning Balance | 84 | 75 | |
Additions | 14 | 3 | |
Acquisition | 2 | ||
Deductions | (11) | ||
Reclassifications/translations | 5 | 6 | |
Ending Balance | 94 | 84 | |
Gross or Cost | Other intangible assets | |||
Reconciliation of intangible assets | |||
Beginning Balance | 635 | 607 | |
Additions | 19 | 21 | |
Deductions | (11) | ||
Reclassifications/translations | 33 | 18 | |
Ending Balance | 687 | 635 | |
Accumulated depreciation, amortization and impairment losses | |||
Reconciliation of intangible assets | |||
Beginning Balance | (6,256) | (5,264) | |
Amortization | (1,284) | (1,094) | |
Deductions | 55 | 106 | |
Reclassifications/translations | 10 | 4 | |
Ending Balance | (7,495) | (6,256) | |
Accumulated depreciation, amortization and impairment losses | Goodwill | |||
Reconciliation of intangible assets | |||
Beginning Balance | (21) | (21) | |
Ending Balance | (21) | (21) | |
Accumulated depreciation, amortization and impairment losses | Software | |||
Reconciliation of intangible assets | |||
Beginning Balance | (5,714) | (4,776) | |
Amortization | (1,226) | (1,037) | |
Deductions | 51 | 95 | |
Reclassifications/translations | 7 | (4) | |
Ending Balance | (6,896) | (5,714) | |
Accumulated depreciation, amortization and impairment losses | License | |||
Reconciliation of intangible assets | |||
Beginning Balance | (71) | (56) | |
Amortization | (9) | (9) | |
Deductions | 4 | ||
Reclassifications/translations | 5 | 6 | |
Ending Balance | (81) | (71) | |
Accumulated depreciation, amortization and impairment losses | Other intangible assets | |||
Reconciliation of intangible assets | |||
Beginning Balance | (450) | (411) | |
Amortization | (49) | (48) | |
Deductions | 11 | ||
Reclassifications/translations | (2) | 2 | |
Ending Balance | Rp (497) | Rp (450) |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
TRADE AND OTHER PAYABLES | |||
Trade payables | Rp 14,766 | Rp 15,574 | |
Other payables | 448 | 217 | |
Total trade and other payables | $ 1,058 | Rp 15,214 | Rp 15,791 |
TRADE AND OTHER PAYABLES - Brea
TRADE AND OTHER PAYABLES - Breakdown of trade payables (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Related parties | ||
Radio frequency usage charges, concession fees and Universal Service Obligation (“USO”) charges | Rp 1,471 | Rp 1,561 |
Purchases of equipments, materials and services | 829 | 577 |
Payables to other telecommunication providers | 189 | 322 |
Sub-total | 2,489 | 2,460 |
Third parties | ||
Purchases of equipments, materials and services | 10,849 | 11,659 |
Payables to other telecommunication providers | 1,428 | 1,455 |
Sub-total | 12,277 | 13,114 |
Total | Rp 14,766 | Rp 15,574 |
TRADE AND OTHER PAYABLES - Trad
TRADE AND OTHER PAYABLES - Trade payables by currency (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
TRADE AND OTHER PAYABLES | ||
Current trade payables | Rp 14,766 | Rp 15,574 |
Rupiah | ||
TRADE AND OTHER PAYABLES | ||
Current trade payables | 11,726 | 13,344 |
USD | ||
TRADE AND OTHER PAYABLES | ||
Current trade payables | 2,978 | 2,167 |
Others | ||
TRADE AND OTHER PAYABLES | ||
Current trade payables | Rp 62 | Rp 63 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
ACCRUED EXPENSES | |||
Operation, maintenance and telecommunication services | Rp 8,013 | Rp 7,093 | |
General, administrative and marketing expenses | 2,219 | 2,664 | |
Salaries and benefits | 2,299 | 2,684 | |
Interest and bank charges | 238 | 189 | |
Total | $ 888 | Rp 12,769 | Rp 12,630 |
CONTRACT LIABILITIES (Details)
CONTRACT LIABILITIES (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | |
Current | ||||
Prepaid pulse reload vouchers | Rp 4,413 | Rp 4,800 | ||
Material rights for contract renewal | 65 | 44 | ||
Others | 774 | 583 | ||
Total | $ 365 | 5,252 | 5,427 | |
Non-current | ||||
IRU | 258 | 205 | ||
Material rights for contract renewal | 394 | 305 | ||
Others | 14 | |||
Total | $ 45 | Rp 652 | Rp 524 | |
Contract liabilities at the beginning period which recognized as revenue in current year | Rp 5,495 |
SHORT-TERM BANK LOANS AND CUR_3
SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS | |||
Short-term bank loans | Rp 4,043 | Rp 2,289 | |
Current maturities of long-term borrowings | 6,296 | 5,209 | |
Total current borrowings and current portion of non-current borrowings | $ 719 | Rp 10,339 | Rp 7,498 |
SHORT-TERM BANK LOANS AND CUR_4
SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS - Short-term bank loans (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
Borrowings and other credit facilities | |||
Short-term bank loans - Related parties | Rp 956 | Rp 1,297 | |
Short-term bank loans - Third parties | 3,087 | 992 | |
Short-term bank loans | 4,043 | 2,289 | |
BNI | Rupiah | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Related parties | 956 | 1,252 | |
Bank Mandiri | Rupiah | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Related parties | 45 | ||
MUFG Bank, Ltd. ("MUFG Bank") | Rupiah | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Third parties | 1,295 | ||
PT Bank DBS Indonesia | Rupiah | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Third parties | 699 | 408 | |
PT Bank DBS Indonesia | USD | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Third parties | $ 1 | 13 | |
UOB | Rupiah | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Third parties | 580 | 400 | |
HSBC | Rupiah | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Third parties | 317 | 18 | |
HSBC | USD | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Third parties | $ 0 | 4 | |
SCB | Rupiah | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Third parties | 100 | ||
Bank CIMB Niaga | Rupiah | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Third parties | 78 | 83 | |
PT Bank Sumitomo Mitsui Indonesia ("Sumitomo") | Rupiah | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Third parties | 80 | ||
Others | Rupiah | |||
Borrowings and other credit facilities | |||
Short-term bank loans - Third parties | Rp 1 | Rp 3 |
SHORT-TERM BANK LOANS AND CUR_5
SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS - Other significant information (Details) - IDR (Rp) Rp in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 21, 2018 | Feb. 26, 2018 | |
DBS Credit Agreements | |||
Borrowings and other credit facilities | |||
Total facility | Rp 600,000 | ||
Unused facilities | Rp 125,000 | ||
MUFG Credit Agreement | |||
Borrowings and other credit facilities | |||
Total facility | Rp 500,000 | ||
Unused facilities | 80,000 | ||
USD | DBS Maturing on July 31, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 20 | ||
Interest rate (as a percent) | 3.25% | ||
USD | HSBC Maturing on July 15, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 4 | ||
Interest rate (as a percent) | 13.12% | ||
Rupiah | BNI Maturing on November 8, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 375,000 | ||
Interest rate (as a percent) | 9.00% | ||
Rupiah | BNI Maturing on November 30, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 2,895,000 | ||
Interest rate basis | 1 month JIBOR | ||
Rupiah | MUFG Bank Maturing on September 27, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 2,350,000 | ||
Rupiah | DBS Maturing on February 26, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 600,000 | ||
Interest rate basis | 1 month JIBOR | ||
Interest rate adjustment (as a percent) | 0.70% | ||
Rupiah | DBS Maturing on October 13, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 17,000 | ||
Rupiah | DBS Maturing on July 31, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate (as a percent) | 10.75% | ||
Rupiah | UOB Maturing on December 20, 2020 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 800,000 | ||
Interest rate basis | 1 month JIBOR | ||
Interest rate adjustment (as a percent) | 2.00% | ||
Rupiah | HSBC Maturing on July 15, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 600,000 | ||
Interest rate (as a percent) | 14.34% | ||
Rupiah | HSBC Maturing on June 28, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 300,000 | ||
Interest rate basis | 3 months JIBOR | ||
Interest rate adjustment (as a percent) | 1.00% | ||
Rupiah | SCB Maturing on March 28, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 100,000 | ||
Interest rate (as a percent) | 10.50% | ||
Rupiah | CIMB Niaga Maturing on January 1, 2019 | |||
Borrowings and other credit facilities | |||
Total facility | Rp 85,000 | ||
Rupiah | Minimum | BNI Maturing on November 30, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate adjustment (as a percent) | 2.20% | ||
Rupiah | Minimum | DBS Maturing on October 13, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate (as a percent) | 10.50% | ||
Rupiah | Minimum | CIMB Niaga Maturing on January 1, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate (as a percent) | 10.90% | ||
Rupiah | Maximum | BNI Maturing on November 30, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate adjustment (as a percent) | 3.00% | ||
Rupiah | Maximum | DBS Maturing on October 13, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate (as a percent) | 11.00% | ||
Rupiah | Maximum | CIMB Niaga Maturing on January 1, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate (as a percent) | 11.50% | ||
Monthly Repayment of Interest | Rupiah | MUFG Bank Maturing on September 27, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate basis | 1 month JIBOR | ||
Monthly Repayment of Interest | Rupiah | Minimum | MUFG Bank Maturing on September 27, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate adjustment (as a percent) | 0.70% | ||
Monthly Repayment of Interest | Rupiah | Maximum | MUFG Bank Maturing on September 27, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate adjustment (as a percent) | 0.95% | ||
Repayment of Interest, Semi Annually | Rupiah | MUFG Bank Maturing on September 27, 2019 | |||
Borrowings and other credit facilities | |||
Interest rate basis | 6 months JIBOR | ||
Interest rate adjustment (as a percent) | 0.70% |
SHORT-TERM BANK LOANS AND CUR_6
SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS - Current maturities of long-term borrowings (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Borrowings and other credit facilities | ||
Current maturities | Rp 6,296 | Rp 5,209 |
Two-step loans | ||
Borrowings and other credit facilities | ||
Current maturities | 198 | 206 |
Bonds and notes | ||
Borrowings and other credit facilities | ||
Current maturities | 525 | |
Bank loans | ||
Borrowings and other credit facilities | ||
Current maturities | 4,472 | 4,110 |
Other borrowings | ||
Borrowings and other credit facilities | ||
Current maturities | 294 | 99 |
Obligations under finance leases | ||
Borrowings and other credit facilities | ||
Current maturities | Rp 807 | Rp 794 |
LONG-TERM LOANS AND OTHER BOR_3
LONG-TERM LOANS AND OTHER BORROWINGS (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | $ 2,347 | Rp 33,743 | Rp 27,974 |
Two-step loans | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 751 | 892 | |
Bonds and notes | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 9,956 | 8,982 | |
Bank loans | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 18,748 | 13,894 | |
Other borrowings | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 1,950 | 1,196 | |
Obligations under finance leases | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | Rp 2,338 | Rp 3,010 |
LONG-TERM LOANS AND OTHER BOR_4
LONG-TERM LOANS AND OTHER BORROWINGS - Principal payments (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | $ 2,347 | Rp 33,743 | Rp 27,974 |
1-2 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 11,508 | ||
2-3 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 4,784 | ||
3-4 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 5,872 | ||
4-5 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 3,588 | ||
Thereafter | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 7,991 | ||
Two-step loans | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 751 | 892 | |
Two-step loans | 1-2 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 198 | ||
Two-step loans | 2-3 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 181 | ||
Two-step loans | 3-4 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 144 | ||
Two-step loans | 4-5 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 127 | ||
Two-step loans | Thereafter | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 101 | ||
Bonds and notes | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 9,956 | 8,982 | |
Bonds and notes | 1-2 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 2,490 | ||
Bonds and notes | 2-3 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 477 | ||
Bonds and notes | 3-4 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 2,197 | ||
Bonds and notes | Thereafter | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 4,792 | ||
Bank loans | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 18,748 | 13,894 | |
Bank loans | 1-2 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 7,648 | ||
Bank loans | 2-3 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 3,051 | ||
Bank loans | 3-4 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 2,577 | ||
Bank loans | 4-5 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 2,813 | ||
Bank loans | Thereafter | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 2,659 | ||
Other borrowings | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 1,950 | 1,196 | |
Other borrowings | 1-2 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 404 | ||
Other borrowings | 2-3 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 405 | ||
Other borrowings | 3-4 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 405 | ||
Other borrowings | 4-5 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 415 | ||
Other borrowings | Thereafter | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 321 | ||
Obligations under finance leases | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 2,338 | Rp 3,010 | |
Obligations under finance leases | 1-2 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 768 | ||
Obligations under finance leases | 2-3 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 670 | ||
Obligations under finance leases | 3-4 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 549 | ||
Obligations under finance leases | 4-5 years | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | 233 | ||
Obligations under finance leases | Thereafter | |||
Borrowings and other credit facilities | |||
Long-term loans and other borrowings | Rp 118 |
LONG-TERM LOANS AND OTHER BOR_5
LONG-TERM LOANS AND OTHER BORROWINGS - Two-step loans (Details) ¥ in Millions, $ in Millions, Rp in Billions | 12 Months Ended | |||||
Dec. 31, 2018JPY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017IDR (Rp) | |
Borrowings and other credit facilities | ||||||
Current maturities | Rp (6,296) | Rp (5,209) | ||||
Long-term portion | $ 2,347 | 33,743 | 27,974 | |||
Two-step loans | ||||||
Borrowings and other credit facilities | ||||||
Total loans and other borrowings | 949 | 1,098 | ||||
Current maturities | (198) | (206) | ||||
Long-term portion | 751 | 892 | ||||
Projected net revenue to projected debt service ratio | 1.2 | |||||
Internal financing exceeding annual average capital expenditure | 20.00% | |||||
Yen | Two-step loans | ||||||
Borrowings and other credit facilities | ||||||
Total loans and other borrowings | ¥ 4,607 | Rp 602 | ¥ 5,375 | 648 | ||
Interest rate (as a percent) | 2.95% | 2.95% | 2.95% | |||
USD | Two-step loans | ||||||
Borrowings and other credit facilities | ||||||
Total loans and other borrowings | $ 13 | Rp 188 | $ 17 | 237 | ||
Interest rate (as a percent) | 3.85% | 3.85% | 3.85% | |||
Rupiah | Two-step loans | ||||||
Borrowings and other credit facilities | ||||||
Total loans and other borrowings | Rp 159 | Rp 213 | ||||
Interest rate (as a percent) | 7.50% | 7.50% | 7.50% |
LONG-TERM LOANS AND OTHER BOR_6
LONG-TERM LOANS AND OTHER BORROWINGS - Bonds and Notes (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
Borrowings and other credit facilities | |||
Current maturities | Rp (6,296) | Rp (5,209) | |
Long-term portion | $ 2,347 | 33,743 | 27,974 |
Bonds and notes | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 10,495 | 8,995 | |
Unamortized debt issuance cost | (14) | (13) | |
Total loans and other borrowings | 10,481 | 8,982 | |
Current maturities | (525) | ||
Long-term portion | 9,956 | 8,982 | |
2010 - Series B Bonds | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 1,995 | ||
2015 - Series A Bonds | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 2,200 | ||
2015 - Series B Bonds | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 2,100 | ||
2015 - Series C Bonds | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 1,200 | ||
2015 - Series D Bonds | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 1,500 | ||
MTN I Telkom 2018 - Series A | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 262 | ||
MTN I Telkom 2018 - Series B | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 200 | ||
MTN I Telkom 2018 - Series C | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 296 | ||
MTN - Syariah Ijarah I Telkom 2018 - Series A | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 264 | ||
MTN - Syariah Ijarah I Telkom 2018 - Series B | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 296 | ||
MTN - Syariah Ijarah I Telkom 2018 - Series C | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 182 | ||
Rupiah | 2010 - Series B Bonds | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 1,995 | 1,995 | |
Rupiah | 2015 - Series A Bonds | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 2,200 | 2,200 | |
Rupiah | 2015 - Series B Bonds | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 2,100 | 2,100 | |
Rupiah | 2015 - Series C Bonds | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 1,200 | 1,200 | |
Rupiah | 2015 - Series D Bonds | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 1,500 | Rp 1,500 | |
Rupiah | MTN I Telkom 2018 - Series A | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 262 | ||
Rupiah | MTN I Telkom 2018 - Series B | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 200 | ||
Rupiah | MTN I Telkom 2018 - Series C | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 296 | ||
Rupiah | MTN - Syariah Ijarah I Telkom 2018 - Series A | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 264 | ||
Rupiah | MTN - Syariah Ijarah I Telkom 2018 - Series B | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | 296 | ||
Rupiah | MTN - Syariah Ijarah I Telkom 2018 - Series C | |||
Borrowings and other credit facilities | |||
Total loans and other borrowings | Rp 182 |
LONG-TERM LOANS AND OTHER BOR_7
LONG-TERM LOANS AND OTHER BORROWINGS - Bonds (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Bonds and notes | ||
Borrowings and other credit facilities | ||
Total loans and other borrowings | Rp 10,495 | Rp 8,995 |
2010 - Series B Bonds | ||
Borrowings and other credit facilities | ||
Total loans and other borrowings | Rp 1,995 | |
Interest rate (as a percent) | 10.20% | |
Maximum debt to equity ratio | 2 | |
Minimum EBITDA to finance costs ratio | 5 | |
Minimum debt service coverage | 125.00% | |
2015 Bonds | ||
Borrowings and other credit facilities | ||
Total loans and other borrowings | Rp 7,000 | |
Maximum debt to equity ratio | 2 | |
Minimum EBITDA to finance costs ratio | 4 | |
Minimum debt service coverage | 125.00% | |
2015 - Series A Bonds | ||
Borrowings and other credit facilities | ||
Total loans and other borrowings | Rp 2,200 | |
Interest rate (as a percent) | 9.93% | |
2015 - Series B Bonds | ||
Borrowings and other credit facilities | ||
Total loans and other borrowings | Rp 2,100 | |
Interest rate (as a percent) | 10.25% | |
2015 - Series C Bonds | ||
Borrowings and other credit facilities | ||
Total loans and other borrowings | Rp 1,200 | |
Interest rate (as a percent) | 10.60% | |
2015 - Series D Bonds | ||
Borrowings and other credit facilities | ||
Total loans and other borrowings | Rp 1,500 | |
Interest rate (as a percent) | 11.00% |
LONG-TERM LOANS AND OTHER BOR_8
LONG-TERM LOANS AND OTHER BORROWINGS - MTN (Details) Rp in Billions | 12 Months Ended |
Dec. 31, 2018IDR (Rp) | |
MTN I Telkom 2018 | |
Borrowings and other credit facilities | |
Total loans and other borrowings | Rp 758 |
Maximum debt to equity ratio | 2 |
Minimum EBITDA to finance costs ratio | 4 |
Minimum debt service coverage | 125.00% |
MTN I Telkom 2018 - Series A | |
Borrowings and other credit facilities | |
Total loans and other borrowings | Rp 262 |
Interest rate (as a percent) | 7.25% |
MTN I Telkom 2018 - Series B | |
Borrowings and other credit facilities | |
Total loans and other borrowings | Rp 200 |
Interest rate (as a percent) | 8.00% |
MTN I Telkom 2018 - Series C | |
Borrowings and other credit facilities | |
Total loans and other borrowings | Rp 296 |
Interest rate (as a percent) | 8.35% |
Maximum | MTN I Telkom 2018 | |
Borrowings and other credit facilities | |
Total loans and other borrowings | Rp 758 |
LONG-TERM LOANS AND OTHER BOR_9
LONG-TERM LOANS AND OTHER BORROWINGS - MTN Syariah Ijarah I Telkom Year 2018 (Details) Rp in Billions | 12 Months Ended |
Dec. 31, 2018IDR (Rp) | |
MTN - Syariah Ijarah I Telkom 2018 | |
Borrowings and other credit facilities | |
Total loans and other borrowings | Rp 742 |
Annual return payment | Rp 58 |
Maximum debt to equity ratio | 2 |
Minimum EBITDA to finance costs ratio | 4 |
Minimum debt service coverage | 125.00% |
MTN - Syariah Ijarah I Telkom 2018 - Series A | |
Borrowings and other credit facilities | |
Total loans and other borrowings | Rp 264 |
Annual return payment | 19 |
MTN - Syariah Ijarah I Telkom 2018 - Series B | |
Borrowings and other credit facilities | |
Total loans and other borrowings | 296 |
Annual return payment | 24 |
MTN - Syariah Ijarah I Telkom 2018 - Series C | |
Borrowings and other credit facilities | |
Total loans and other borrowings | 182 |
Annual return payment | Rp 15 |
LONG-TERM LOANS AND OTHER BO_10
LONG-TERM LOANS AND OTHER BORROWINGS - Bank loans (Details) RM in Millions, $ in Millions, Rp in Billions | 12 Months Ended | ||||||
Dec. 31, 2018IDR (Rp) | Dec. 31, 2018MYR (RM) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017MYR (RM) | Dec. 31, 2017USD ($) | Dec. 31, 2017IDR (Rp) | |
Borrowings and other credit facilities | |||||||
Current maturities | Rp (6,296) | Rp (5,209) | |||||
Long-term portion | $ 2,347 | 33,743 | 27,974 | ||||
Bank loans | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 23,286 | 18,044 | |||||
Unamortized debt issuance cost | (61) | (40) | |||||
Gain on debt restructuring | Rp (5) | ||||||
Total loans and other borrowings | 23,220 | 18,004 | |||||
Current maturities | (4,472) | (4,110) | |||||
Long-term portion | 18,748 | 13,894 | |||||
Bank loans | Third parties | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 10,666 | 10,149 | |||||
Bank loans | MUFG Bank, Ltd. ("MUFG Bank") | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 3,011 | 1,944 | |||||
Bank loans | MUFG Bank, Ltd. ("MUFG Bank") | USD | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 10 | 144 | |||||
Bank loans | Syndication of banks | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 1,750 | 2,250 | |||||
Bank loans | Syndication of banks | USD | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 37 | 532 | |||||
Bank loans | Citibank | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 1,000 | ||||||
Bank loans | PT Bank Central Asia Tbk ("BCA") | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 740 | 1,100 | |||||
Bank loans | United Overseas Bank Limited ("UOB Singapore") | USD | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 49 | 710 | $ 49 | 664 | |||
Bank loans | PT Bank Sumitomo Mitsui Indonesia ("Sumitomo") | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 661 | 804 | |||||
Bank loans | Bank CIMB Niaga | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 462 | 1,726 | |||||
Bank loans | PT Bank ANZ Indonesia | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 440 | 440 | |||||
Bank loans | UOB | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 428 | 500 | |||||
Bank loans | PT Bank DBS Indonesia | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 379 | 144 | |||||
Bank loans | PT Bank ICBC Indonesia ("ICBC") | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 204 | 249 | |||||
Bank loans | Exim Bank of Malaysia Berhad | Malaysian ringgits | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | RM 23 | 81 | RM 37 | 124 | |||
Bank loans | Japan Bank for International Cooperation ("JBIC") | USD | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | $ 3 | 45 | $ 9 | 128 | |||
Bank loans | Others | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 33 | 26 | |||||
Bank loans | Others | Malaysian ringgits | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | RM 13 | 46 | RM 15 | 50 | |||
Bank loans | Related parties | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 12,620 | 7,895 | |||||
Bank loans | BNI | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 6,826 | 4,603 | |||||
Bank loans | Bank Mandiri | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | 4,546 | 1,126 | |||||
Bank loans | BRI | Rupiah | |||||||
Borrowings and other credit facilities | |||||||
Total loans and other borrowings | Rp 1,248 | Rp 2,166 |
LONG-TERM LOANS AND OTHER BO_11
LONG-TERM LOANS AND OTHER BORROWINGS - Other significant information relating to bank loans (Details) Rp in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2018IDR (Rp) | Mar. 27, 2018IDR (Rp) | Mar. 30, 2017IDR (Rp) | Mar. 24, 2017IDR (Rp) | Mar. 13, 2015IDR (Rp) | |
Borrowings and other credit facilities | |||||||||
Drawn down | $ 2,459 | Rp 35,364,000 | Rp 12,169,000 | Rp 7,479,000 | |||||
BNI 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | Rp 182,000 | ||||||||
Current period payment | 8,000 | ||||||||
BNI 2013 - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 9,892,000 | ||||||||
Current period payment | 671,000 | ||||||||
Bank Mandri 2016 - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 8,750,000 | ||||||||
Current period payment | 4,035,000 | ||||||||
Bank Mandri 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 845,000 | ||||||||
BRI 2013 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 103,000 | ||||||||
Current period payment | 17,000 | ||||||||
BRI 2017 - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 1,200,000 | ||||||||
MUFG Bank 2015 - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 3,950,000 | ||||||||
Current period payment | 194,000 | ||||||||
MUFG Bank 2018 | USD | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 10 | ||||||||
Syndication of Banks - 2015 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 3,000,000 | ||||||||
Current period payment | 500,000 | ||||||||
Syndication of Banks - 2018 | USD | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 90 | ||||||||
Citibank - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 1,000,000 | ||||||||
BCA 2017 - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 870,000 | ||||||||
Current period payment | 21,000 | ||||||||
UOB Singapore - 2016 | USD | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 60 | ||||||||
Sumitomo 2015 - 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 1,150,000 | ||||||||
Current period payment | 194,000 | ||||||||
Bank CIMB Niaga - 2011 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 78,000 | ||||||||
Current period payment | 8,000 | ||||||||
Bank CIMB Niaga - 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 495,000 | ||||||||
Current period payment | 28,000 | ||||||||
ANZ 2015 - 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 750,000 | ||||||||
UOB - 2016 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 500,000 | ||||||||
Current period payment | 71,000 | ||||||||
DBS 2016 - 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 136,000 | ||||||||
Current period payment | Rp 17,000 | ||||||||
DBS 2016 - 2017 | Rupiah | Minimum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 9.17% | 9.17% | |||||||
DBS 2016 - 2017 | Rupiah | Maximum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 11.00% | 11.00% | |||||||
DBS 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | Rp 400,000 | ||||||||
Current period payment | 38,000 | ||||||||
ICBC 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 272,000 | ||||||||
Current period payment | 45,000 | ||||||||
Exim Bank of Malaysia Berhad - March 23 2016 | Malaysian ringgits | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 60 | ||||||||
Current period payment | 14 | ||||||||
JBIC - Facility A | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | $ | $ 18.8 | ||||||||
JBIC - Facility A | USD | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 30 | ||||||||
Current period payment | 4 | ||||||||
JBIC - Facility B | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | $ | $ 12.5 | ||||||||
JBIC - Facility B | USD | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 30 | ||||||||
Current period payment | 3 | ||||||||
BNI - March 24, 2017 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | Rp 2,005,000 | ||||||||
Unused facility | 5,000 | ||||||||
BNI - March 27, 2018 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | Rp 825,000 | ||||||||
Unused facility | 825,000 | ||||||||
BRI - March 24, 2017 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 1,000,000 | ||||||||
BRI - March 27, 2018 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 700,000 | ||||||||
Unused facility | 500,000 | ||||||||
Bank Mandiri - March 24, 2017 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | Rp 1,500,000 | ||||||||
Bank Mandiri - March 27, 2018 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 775,000 | ||||||||
Unused facility | 775,000 | ||||||||
Syndication of banks - March 13, 2015 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | Rp 3,000,000 | ||||||||
The Bank of Tokyo - Mitsubishi UFJ, Ltd - March 13, 2015 (Dayamitra) | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 750,000 | ||||||||
Unused facility | 82,500 | ||||||||
The Bank of Tokyo - Mitsubishi UFJ, Ltd - March 30, 2017 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | Rp 400,000 | ||||||||
Unused facility | 79,000 | ||||||||
The Bank of Tokyo - Mitsubishi UFJ, Ltd - March 27, 2018 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | Rp 800,000 | ||||||||
Unused facility | 0 | ||||||||
Bank CIMB Niaga - March 30, 2017 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 495,000 | ||||||||
Unused facility | 20,000 | ||||||||
Bank BCA Tbk - March 30 2017 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 850,000 | ||||||||
Unused facility | 564,000 | ||||||||
PT Bank Sumitomo Mitsui Indonesia - March 13, 2015 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 750,000 | ||||||||
Unused facility | 82,500 | ||||||||
PT Bank Sumitomo Mitsui Indonesia - March 30, 2017 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | 400,000 | ||||||||
Unused facility | 79,000 | ||||||||
Bank ANZ Indonesia - March 13, 2015 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | Rp 500,000 | ||||||||
Unused facility | 60,000 | ||||||||
Bank ANZ Indonesia - March 13 2017 | |||||||||
Borrowings and other credit facilities | |||||||||
Drawn down | Rp 200,000 | ||||||||
PT Bank DBS Indonesia - March 30, 2017 | |||||||||
Borrowings and other credit facilities | |||||||||
Total facility | Rp 850,000 | ||||||||
Unused facility | Rp 420,000 | ||||||||
Monthly Repayment of Interest | BNI 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 8.75% | 8.75% | |||||||
Monthly Repayment of Interest | BNI 2013 - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 1 month JIBOR | 1 month JIBOR | |||||||
Monthly Repayment of Interest | BNI 2013 - 2018 | Rupiah | Minimum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate adjustment (as a percent) | 2.20% | 2.20% | |||||||
Monthly Repayment of Interest | BNI 2013 - 2018 | Rupiah | Maximum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate adjustment (as a percent) | 3.00% | 3.00% | |||||||
Monthly Repayment of Interest | Bank Mandri 2016 - 2018 | Rupiah | Minimum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 8.50% | 8.50% | |||||||
Monthly Repayment of Interest | Bank Mandri 2016 - 2018 | Rupiah | Maximum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 8.75% | 8.75% | |||||||
Monthly Repayment of Interest | BRI 2013 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 10.00% | 10.00% | |||||||
Monthly Repayment of Interest | UOB Singapore - 2016 | USD | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 1 month LIBOR | 1 month LIBOR | |||||||
Interest rate adjustment (as a percent) | 1.25% | 1.25% | |||||||
Monthly Repayment of Interest | Bank CIMB Niaga - 2011 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 9.75% | 9.75% | |||||||
Monthly Repayment of Interest | Exim Bank of Malaysia Berhad - March 23 2016 | Malaysian ringgits | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | ECOF | ECOF | |||||||
Interest rate adjustment (as a percent) | 1.89% | 1.89% | |||||||
Quarterly repayment of interest | BNI 2013 - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Quarterly repayment of interest | BNI 2013 - 2018 | Rupiah | Minimum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate adjustment (as a percent) | 1.50% | 1.50% | |||||||
Quarterly repayment of interest | BNI 2013 - 2018 | Rupiah | Maximum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate adjustment (as a percent) | 2.50% | 2.50% | |||||||
Quarterly repayment of interest | Bank Mandri 2016 - 2018 | Rupiah | Minimum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 9.00% | 9.00% | |||||||
Quarterly repayment of interest | Bank Mandri 2016 - 2018 | Rupiah | Maximum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 9.50% | 9.50% | |||||||
Quarterly repayment of interest | Bank Mandri 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Interest rate adjustment (as a percent) | 1.85% | 1.85% | |||||||
Quarterly repayment of interest | BRI 2017 - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Interest rate adjustment (as a percent) | 1.85% | 1.85% | |||||||
Quarterly repayment of interest | MUFG Bank 2015 - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Quarterly repayment of interest | MUFG Bank 2015 - 2018 | Rupiah | Minimum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate adjustment (as a percent) | 1.43% | 1.43% | |||||||
Quarterly repayment of interest | MUFG Bank 2015 - 2018 | Rupiah | Maximum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate adjustment (as a percent) | 2.25% | 2.25% | |||||||
Quarterly repayment of interest | MUFG Bank 2018 | USD | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 1.25% | 1.25% | |||||||
Interest rate basis | 3 months LIBOR | 3 months LIBOR | |||||||
Quarterly repayment of interest | Syndication of Banks - 2015 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Interest rate adjustment (as a percent) | 2.00% | 2.00% | |||||||
Quarterly repayment of interest | Citibank - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 8.50% | 8.50% | |||||||
Quarterly repayment of interest | BCA 2017 - 2018 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Quarterly repayment of interest | BCA 2017 - 2018 | Rupiah | Minimum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate adjustment (as a percent) | 1.50% | 1.50% | |||||||
Quarterly repayment of interest | BCA 2017 - 2018 | Rupiah | Maximum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate adjustment (as a percent) | 1.85% | 1.85% | |||||||
Quarterly repayment of interest | Sumitomo 2015 - 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Quarterly repayment of interest | Sumitomo 2015 - 2017 | Rupiah | Minimum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate adjustment (as a percent) | 1.50% | 1.50% | |||||||
Quarterly repayment of interest | Sumitomo 2015 - 2017 | Rupiah | Maximum | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate adjustment (as a percent) | 2.15% | 2.15% | |||||||
Quarterly repayment of interest | Bank CIMB Niaga - 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 1.50% | 1.50% | |||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Quarterly repayment of interest | ANZ 2015 - 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Interest rate adjustment (as a percent) | 2.00% | 2.00% | |||||||
Quarterly repayment of interest | UOB - 2016 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Interest rate adjustment (as a percent) | 2.20% | 2.20% | |||||||
Quarterly repayment of interest | DBS 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Interest rate adjustment (as a percent) | 1.50% | 1.50% | |||||||
Quarterly repayment of interest | ICBC 2017 | Rupiah | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months JIBOR | 3 months JIBOR | |||||||
Interest rate adjustment (as a percent) | 2.36% | 2.36% | |||||||
Repayment of Interest, Semi Annually | Syndication of Banks - 2018 | USD | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 3 months LIBOR | 3 months LIBOR | |||||||
Interest rate adjustment (as a percent) | 1.25% | 1.25% | |||||||
Repayment of Interest, Semi Annually | JBIC - Facility A | USD | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate (as a percent) | 2.18% | 2.18% | |||||||
Repayment of Interest, Semi Annually | JBIC - Facility B | USD | |||||||||
Borrowings and other credit facilities | |||||||||
Interest rate basis | 6 months LIBOR | 6 months LIBOR | |||||||
Interest rate adjustment (as a percent) | 1.20% | 1.20% |
LONG-TERM LOANS AND OTHER BO_12
LONG-TERM LOANS AND OTHER BORROWINGS - Other borrowings (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
Disclosure of detailed information about borrowings [line items] | |||
Current maturities | Rp (6,296) | Rp (5,209) | |
Long-term portion | $ 2,347 | 33,743 | 27,974 |
PT Sarana Multi Infrastruktur | |||
Disclosure of detailed information about borrowings [line items] | |||
Total loans and other borrowings | 2,250 | 1,300 | |
Unamortized debt issuance cost | (6) | (5) | |
Total loans and other borrowings | 2,244 | 1,295 | |
Current maturities | (294) | (99) | |
Long-term portion | Rp 1,950 | Rp 1,196 |
LONG-TERM LOANS AND OTHER BO_13
LONG-TERM LOANS AND OTHER BORROWINGS - Other borrowings agreements (Details) Rp in Billions | 12 Months Ended |
Dec. 31, 2018IDR (Rp) | |
PT Sarana Multi Infrastruktur | Dayamitra | |
Borrowings and other credit facilities | |
Maximum debt to equity ratio | 5 |
Net debt to EBITDA ratio | 4.00% |
Minimum debt service coverage | 100.00% |
Sarana Multi Infrastruktur October 12 2016 | Rupiah | Dayamitra | |
Borrowings and other credit facilities | |
Total facility | Rp 700 |
Current period payment | 50 |
Sarana Multi Infrastruktur March 29 2017 | Rupiah | Dayamitra | |
Borrowings and other credit facilities | |
Total facility | Rp 600 |
The company | Sarana Multi Infrastruktur November 14 2018 | |
Borrowings and other credit facilities | |
Maximum debt to equity ratio | 2 |
Net debt to EBITDA ratio | 4.00% |
Minimum debt service coverage | 125.00% |
The company | Sarana Multi Infrastruktur November 14 2018 | Rupiah | |
Borrowings and other credit facilities | |
Total facility | Rp 1,000 |
Repayment of Interest, Semi Annually | Sarana Multi Infrastruktur October 12 2016 | Rupiah | Dayamitra | |
Borrowings and other credit facilities | |
Interest rate basis | 3 months JIBOR |
Interest rate adjustment (as a percent) | 1.85% |
Repayment of Interest, Semi Annually | Sarana Multi Infrastruktur March 29 2017 | Rupiah | Dayamitra | |
Borrowings and other credit facilities | |
Interest rate basis | 3 months JIBOR |
Interest rate adjustment (as a percent) | 1.85% |
Repayment of Interest, Semi Annually | The company | Sarana Multi Infrastruktur November 14 2018 | Rupiah | |
Borrowings and other credit facilities | |
Interest rate (as a percent) | 8.35% |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details) $ in Millions, Rp in Billions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2018IDR (Rp) | |
Noncontrolling Interests | |||||
Non-controlling interests in net assets of subsidiaries | $ 1,270 | Rp 19,364 | Rp 18,267 | ||
Non-controlling interests | $ 629 | Rp 9,034 | 10,411 | Rp 9,738 | |
Total non-controlling interest in subsidiaries | |||||
Noncontrolling Interests | |||||
Non-controlling interests in net assets of subsidiaries | 19,364 | 18,267 | |||
Non-controlling interests | 8,909 | 10,550 | 9,816 | ||
Telkomsel | |||||
Noncontrolling Interests | |||||
Non-controlling interests in net assets of subsidiaries | 18,891 | 17,770 | |||
Non-controlling interests | 8,899 | 10,632 | 9,863 | ||
GSD | |||||
Noncontrolling Interests | |||||
Non-controlling interests in net assets of subsidiaries | 186 | 212 | |||
Non-controlling interests | (8) | (5) | (5) | ||
Metra | |||||
Noncontrolling Interests | |||||
Non-controlling interests in net assets of subsidiaries | 115 | 174 | |||
Non-controlling interests | 11 | (83) | (39) | ||
TII | |||||
Noncontrolling Interests | |||||
Non-controlling interests in net assets of subsidiaries | 172 | Rp 111 | |||
Non-controlling interests | Rp 7 | Rp 6 | Rp (3) |
NON-CONTROLLING INTERESTS - Mat
NON-CONTROLLING INTERESTS - Material Partly-owned Subsidiary (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Telkomsel | ||
Noncontrolling Interests | ||
Ownership interest | 35.00% | 35.00% |
NON-CONTROLLING INTERESTS - Sum
NON-CONTROLLING INTERESTS - Summarized Statements of Financial Position (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2015IDR (Rp) |
Noncontrolling Interests | |||||
Current assets | $ 2,977 | Rp 42,843 | Rp 47,561 | ||
Non-current assets | 11,339 | 163,057 | 150,624 | ||
Current liabilities | (3,221) | (46,322) | (45,376) | ||
Non-current liabilities | (2,960) | (42,572) | (40,978) | ||
TOTAL EQUITY | 8,135 | 117,006 | 111,831 | Rp 105,276 | Rp 93,183 |
Equity holders of parent company | 6,865 | 98,739 | 92,467 | ||
Non-controlling Interests | $ 1,270 | 18,267 | 19,364 | ||
Telkomsel | |||||
Noncontrolling Interests | |||||
Current assets | 20,089 | 21,098 | |||
Non-current assets | 62,130 | 64,499 | |||
Current liabilities | (20,775) | (23,031) | |||
Non-current liabilities | (10,667) | (8,587) | |||
TOTAL EQUITY | 50,777 | 53,979 | |||
Equity holders of parent company | 33,007 | 35,088 | |||
Non-controlling Interests | Rp 17,770 | Rp 18,891 |
NON-CONTROLLING INTERESTS - S_2
NON-CONTROLLING INTERESTS - Summarized Statements of Profit or Loss and Other Comprehensive Income (Details) $ in Millions, Rp in Billions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
Noncontrolling Interests | |||||
Revenue | Rp 130,788 | $ 9,095 | Rp 130,788 | Rp 128,256 | Rp 116,333 |
Operating expenses | (92,255) | (84,354) | (77,161) | ||
Other income - net | 1,745 | 121 | 1,745 | 1,039 | 751 |
Profit before income tax | 2,510 | 36,077 | 42,628 | 38,166 | |
Income tax expense – net | Rp (9,366) | (652) | (9,366) | (9,958) | (9,017) |
Profit for the year from continuing operations | 1,858 | 26,711 | 32,670 | 29,149 | |
Other comprehensive income net | 344 | 4,954 | (2,332) | (2,099) | |
Net comprehensive income for the year | 2,202 | 31,665 | 30,338 | 27,050 | |
Profit for the year attributable to non-controlling interest | $ 629 | 9,034 | 10,411 | 9,738 | |
Telkomsel | |||||
Noncontrolling Interests | |||||
Revenue | 89,258 | 93,217 | 86,725 | ||
Operating expenses | (55,408) | (53,198) | (49,765) | ||
Other income - net | 124 | 380 | 483 | ||
Profit before income tax | 33,974 | 40,399 | 37,443 | ||
Income tax expense – net | (8,546) | (10,018) | (9,263) | ||
Profit for the year from continuing operations | 25,428 | 30,381 | 28,180 | ||
Other comprehensive income net | 356 | (392) | (222) | ||
Net comprehensive income for the year | 25,784 | 29,989 | 27,958 | ||
Profit for the year attributable to non-controlling interest | 8,899 | 10,632 | 9,863 | ||
Dividend paid to non-controlling interest | Rp 10,105 | Rp 12,334 | Rp 7,036 |
NON-CONTROLLING INTERESTS - S_3
NON-CONTROLLING INTERESTS - Summarized Statements of Cash Flows (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
Noncontrolling Interests | ||||
Operating activities | $ 3,176 | Rp 45,671 | Rp 49,405 | Rp 47,231 |
Investing activities | (2,439) | (35,090) | (33,007) | (27,557) |
Financing activities | (1,284) | (18,458) | (21,052) | (17,905) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | $ (547) | (7,877) | (4,654) | 1,769 |
Telkomsel | ||||
Noncontrolling Interests | ||||
Operating activities | 36,848 | 39,564 | 42,827 | |
Investing activities | (16,095) | (13,984) | (12,794) | |
Financing activities | (24,867) | (34,720) | (24,132) | |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | Rp (4,114) | Rp (9,140) | Rp 5,901 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($)shares | Dec. 31, 2018IDR (Rp)shares | Apr. 27, 2018shares | Apr. 26, 2018shares | Dec. 31, 2017IDR (Rp)shares | Dec. 31, 2016shares | Apr. 19, 2013shares | Apr. 18, 2013shares | Jul. 30, 2004shares | Jul. 29, 2004shares | Nov. 13, 1995shares |
Share capital | |||||||||||
Number of shares outstanding | 8,400,000,000 | ||||||||||
Treasury stock | 1,737,779,800 | 1,737,779,800 | |||||||||
Total number of shares issued | 99,062,216,600 | 100,799,996,400 | 100,799,996,400 | ||||||||
Percentage of ownership | 100.00% | ||||||||||
Treasury shares | Rp | Rp 87 | ||||||||||
Capital stock | $ 344 | Rp 4,953 | Rp 5,040 | ||||||||
Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 99,062,216,600 | 99,062,216,600 | 99,062,216,600 | ||||||||
Percentage of ownership | 100.00% | 100.00% | 100.00% | ||||||||
Outstanding capital | Rp | Rp 4,953 | Rp 4,953 | |||||||||
The Bank of New York Mellon Corporation | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 4,944,921,880 | 4,944,921,880 | 6,078,374,280 | ||||||||
Percentage of ownership | 4.99% | 4.99% | 6.14% | ||||||||
Outstanding capital | Rp | Rp 247 | Rp 304 | |||||||||
Hendri Saparini | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 654,505 | 654,505 | 414,157 | ||||||||
Percentage of ownership | 0.00% | 0.00% | 0.00% | ||||||||
Outstanding capital | Rp | Rp 0 | Rp 0 | |||||||||
Hadiyanto | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 454,113 | 454,113 | 875,297 | ||||||||
Percentage of ownership | 0.00% | 0.00% | 0.00% | ||||||||
Outstanding capital | Rp | Rp 0 | Rp 0 | |||||||||
Rinaldi Firmansyah | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 147,100 | ||||||||||
Percentage of ownership | 0.00% | ||||||||||
Outstanding capital | Rp | Rp 0 | ||||||||||
Alex Janangkih Sinaga | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 1,683,359 | 1,683,359 | 920,349 | ||||||||
Percentage of ownership | 0.00% | 0.00% | 0.00% | ||||||||
Outstanding capital | Rp | Rp 0 | Rp 0 | |||||||||
Herdy Rosadi Harman | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 1,514,720 | 1,514,720 | 828,012 | ||||||||
Percentage of ownership | 0.00% | 0.00% | 0.00% | ||||||||
Outstanding capital | Rp | Rp 0 | Rp 0 | |||||||||
Abdus Somad Arief | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 1,515,022 | 1,515,022 | 828,314 | ||||||||
Percentage of ownership | 0.00% | 0.00% | 0.00% | ||||||||
Outstanding capital | Rp | Rp 0 | Rp 0 | |||||||||
Dian Rachmawan | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 1,575,562 | 1,575,562 | 888,854 | ||||||||
Percentage of ownership | 0.00% | 0.00% | 0.00% | ||||||||
Outstanding capital | Rp | Rp 0 | Rp 0 | |||||||||
Harry Mozarta Zen | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 689,492 | 689,492 | |||||||||
Percentage of ownership | 0.00% | 0.00% | |||||||||
Outstanding capital | Rp | Rp 0 | ||||||||||
David Bangun | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 1,000 | 1,000 | |||||||||
Percentage of ownership | 0.00% | 0.00% | |||||||||
Outstanding capital | Rp | Rp 0 | ||||||||||
Siti Choiriana | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 540 | 540 | |||||||||
Percentage of ownership | 0.00% | 0.00% | |||||||||
Outstanding capital | Rp | Rp 0 | ||||||||||
Public | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 42,506,852,846 | 42,506,852,846 | 41,376,586,676 | ||||||||
Percentage of ownership | 42.92% | 42.92% | 41.77% | ||||||||
Outstanding capital | Rp | Rp 2,126 | Rp 2,069 | |||||||||
Series A Dwiwarna Share | Government agencies | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 1 | 1 | 1 | ||||||||
Percentage of ownership | 0.00% | 0.00% | 0.00% | ||||||||
Outstanding capital | Rp | Rp 0 | Rp 0 | |||||||||
Series B shares | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 100,799,996,399 | 20,159,999,279 | 20,159,999,279 | 10,079,999,639 | 8,399,999,999 | ||||||
Series B shares | Government agencies | Capital stock | |||||||||||
Share capital | |||||||||||
Number of shares outstanding | 51,602,353,560 | 51,602,353,560 | 51,602,353,560 | ||||||||
Percentage of ownership | 52.09% | 52.09% | 52.09% | ||||||||
Outstanding capital | Rp | Rp 2,580 | Rp 2,580 |
CAPITAL STOCK - Narrative (Deta
CAPITAL STOCK - Narrative (Details) Rp in Billions | 12 Months Ended | |
Dec. 31, 2017IDR (Rp)Rp / shares | Dec. 31, 2016IDR (Rp)Rp / shares | |
CAPITAL STOCK. | ||
Cash dividend | Rp | Rp 13,287 | Rp 11,611 |
Cash dividend (per share) | Rp / shares | 134.13 | 117.21 |
Special cash dividend | Rp | Rp 3,322 | Rp 1,936 |
Special cash dividend (per share) | Rp / shares | Rp 33.53 | Rp 19.54 |
ADDITIONAL PAID-IN CAPITAL (Det
ADDITIONAL PAID-IN CAPITAL (Details) $ in Millions, Rp in Billions | Apr. 27, 2018shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017IDR (Rp)shares | Dec. 31, 2018IDR (Rp)shares | Apr. 26, 2018shares |
Disclosure of classes of share capital [line items] | |||||
Reduction additional paid in capital as a result of cancellation treasury stock (Note 23) | Rp (2,454) | ||||
Differences from acquisition of non-controlling interest | (22) | ||||
Additional paid-in capital | $ 137 | Rp 4,453 | 1,977 | ||
Number of shares issued | shares | 99,062,216,600 | 100,799,996,400 | 100,799,996,400 | ||
Sale of treasury stock, Shares | shares | 1,737,779,800 | 1,737,779,800 | |||
Initial public offering | |||||
Disclosure of classes of share capital [line items] | |||||
Additional paid-in capital gross | Rp 1,446 | Rp 1,446 | |||
Number of shares issued | shares | 933,333,000 | 933,333,000 | 933,333,000 | ||
Treasury stock plan phase I | |||||
Disclosure of classes of share capital [line items] | |||||
Additional paid-in capital gross | Rp 544 | Rp 544 | |||
Number of shares issued | shares | 211,290,500 | 211,290,500 | 211,290,500 | ||
Treasury stock plan phase II | |||||
Disclosure of classes of share capital [line items] | |||||
Additional paid-in capital gross | Rp 576 | Rp 576 | |||
Sale of treasury stock, Shares | shares | 215,000,000 | 215,000,000 | |||
Employee stock ownership program | |||||
Disclosure of classes of share capital [line items] | |||||
Additional paid-in capital gross | Rp 228 | 228 | |||
Treasury stock plan phase III | |||||
Disclosure of classes of share capital [line items] | |||||
Additional paid-in capital gross | Rp 36 | 36 | |||
Sale of treasury stock, Shares | shares | 22,363,000 | 22,363,000 | |||
Treasury stock plan phase IV | |||||
Disclosure of classes of share capital [line items] | |||||
Additional paid-in capital gross | Rp 1,996 | 1,996 | |||
Sale of treasury stock, Shares | shares | 864,000,000 | 864,000,000 | |||
Series B shares | |||||
Disclosure of classes of share capital [line items] | |||||
Capitalized into 746,666,640 Series B shares in 1999 | Rp (373) | Rp (373) | |||
Sale of treasury stock, Shares | shares | 746,666,640 | 746,666,640 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2012 | |
Phase I | ||
TREASURY STOCK | ||
Number of shares | 1,007,999,964 | |
Value of shares purchased | Rp 5,250 | |
Phase II | ||
TREASURY STOCK | ||
Number of shares | 215,000,000 | |
Value of shares purchased | Rp 2,000 | |
Phase III | ||
TREASURY STOCK | ||
Number of shares | 339,443,313 | |
Value of shares purchased | Rp 3,000 | |
Phase | ||
TREASURY STOCK | ||
Number of shares | 4,031,999,856 | |
Value of shares purchased | Rp 3,000 | |
Phase IV | ||
TREASURY STOCK | ||
Number of shares | 645,161,290 | 1,186,352,500 |
Value of shares purchased | Rp 5,000 | Rp 1,744 |
TREASURY STOCK - Movements in t
TREASURY STOCK - Movements in treasury stock (Details) - IDR (Rp) Rp in Billions | Apr. 27, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Number of shares | |||
Beginning balance, Shares | 1,737,779,800 | 1,737,779,800 | |
Sale of treasury stock, Shares | (1,737,779,800) | (1,737,779,800) | |
Ending balance, Shares | 1,737,779,800 | ||
Treasury stock, Percentage | |||
Beginning balance, Percentage | 1.72% | 1.72% | |
Sale of treasury stock, Percentage | (1.72%) | ||
Ending balance, Percentage | 1.72% | ||
Treasury stock, Value | |||
Beginning balance, Value | Rp 2,541 | Rp 2,541 | |
Sale of treasury stock, Value | Rp (2,541) | Rp (2,541) | |
Ending balance, Value | Rp 2,541 |
TREASURY STOCK - Additional Inf
TREASURY STOCK - Additional Information (Details) Rp / shares in Units, $ in Millions, Rp in Billions | Apr. 27, 2018IDR (Rp)shares | Jun. 29, 2016IDR (Rp)shares | Dec. 21, 2015IDR (Rp)shares | Jun. 13, 2014IDR (Rp)shares | Jul. 30, 2013IDR (Rp)shares | May 31, 2013IDR (Rp)Rp / sharesshares | Dec. 31, 2018IDR (Rp)shares | Dec. 31, 2012IDR (Rp)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018IDR (Rp)shares | Apr. 26, 2018shares | Dec. 31, 2017IDR (Rp)shares | Dec. 31, 2016shares | Jun. 20, 2007shares |
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares bought back | 211,290,500 | |||||||||||||
Price per share | Rp / shares | Rp 10,714 | |||||||||||||
Discount per share on purchase price | Rp / shares | Rp 5,575 | |||||||||||||
Loss on sale of treasury stock | Rp | Rp 353 | |||||||||||||
Shares resold | 1,737,779,800 | 1,737,779,800 | ||||||||||||
Shares resold equivalent shares after stock split | 1,737,779,800 | 1,737,779,800 | ||||||||||||
Value of shares resold | Rp | Rp 2,541 | Rp 2,541 | ||||||||||||
Excess of value over cost of selling | $ 137 | Rp 1,977 | Rp 4,453 | |||||||||||
Number of shares issued | 99,062,216,600 | 100,799,996,400 | 100,799,996,400 | |||||||||||
Reduction of issued capital | Rp | Rp 87 | |||||||||||||
Minimum | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Lock-in period | 0 months | |||||||||||||
Maximum | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Lock-in period | 12 months | |||||||||||||
Phase I | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Bought back shares equivalent shares after stock split | 1,007,999,964 | 1,007,999,964 | ||||||||||||
Value of shares bought back | Rp | 5,250 | |||||||||||||
Shares resold | 211,290,500 | |||||||||||||
Shares resold equivalent shares after stock split | 1,056,452,500 | |||||||||||||
Value of shares resold | Rp | Rp 2,368 | |||||||||||||
Excess of value over cost of selling | Rp | Rp 544 | |||||||||||||
Phase II | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Bought back shares equivalent shares after stock split | 215,000,000 | 215,000,000 | ||||||||||||
Value of shares bought back | Rp | 2,000 | |||||||||||||
Shares resold | 215,000,000 | |||||||||||||
Shares resold equivalent shares after stock split | 1,075,000,000 | |||||||||||||
Value of shares resold | Rp | Rp 2,541 | |||||||||||||
Excess of value over cost of selling | Rp | Rp 576 | |||||||||||||
Phase III | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Bought back shares equivalent shares after stock split | 339,443,313 | 339,443,313 | ||||||||||||
Value of shares bought back | Rp | 3,000 | |||||||||||||
Shares resold | 4,472,600 | 59,811,400 | ||||||||||||
Shares resold equivalent shares after stock split | 22,363,000 | 299,057,000 | ||||||||||||
Value of shares resold | Rp | Rp 68 | Rp 661 | ||||||||||||
Excess of value over cost of selling | Rp | Rp 36 | Rp 228 | ||||||||||||
Phase IV | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares bought back | 237,270,500 | |||||||||||||
Bought back shares equivalent shares after stock split | 1,186,352,500 | 645,161,290 | 645,161,290 | |||||||||||
Value of shares bought back | Rp | Rp 5,000 | Rp 1,744 | ||||||||||||
Shares resold | 172,800,000 | |||||||||||||
Shares resold equivalent shares after stock split | 864,000,000 | |||||||||||||
Value of shares resold | Rp | Rp 3,259 | |||||||||||||
Excess of value over cost of selling | Rp | Rp 1,996 |
OTHER RESERVES - (Details)
OTHER RESERVES - (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER RESERVES. | |||
Foreign currency operations | Rp 430 | Rp 296 | |
Reclassifications to profit or loss for operations | Rp 0 | Rp 0 | Rp 0 |
BASIC AND DILUTED EARNINGS PE_2
BASIC AND DILUTED EARNINGS PER SHARE - (Details) Rp / shares in Units, $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($)shares | Dec. 31, 2018IDR (Rp)Rp / sharesshares | Dec. 31, 2017IDR (Rp)Rp / sharesshares | Dec. 31, 2016IDR (Rp)Rp / sharesshares | |
BASIC AND DILUTED EARNINGS PER SHARE | ||||
Owners of the parent company | $ 1,238 | Rp 17,802 | Rp 22,120 | Rp 19,333 |
Weighted average shares outstanding, basic | shares | 99,062,216,600 | 99,062,216,600 | 99,062,216,600 | 98,638,501,532 |
Basic earnings per share | Rp / shares | Rp 179.71 | Rp 223.30 | Rp 195.99 |
REVENUES (Details)
REVENUES (Details) $ in Millions, Rp in Billions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
Other revenues | |||||
Total revenues | Rp 130,788 | $ 9,095 | Rp 130,788 | Rp 128,256 | Rp 116,333 |
Revenue From External Customers | 130,788 | 128,256 | 116,333 | ||
Indonesia | |||||
Other revenues | |||||
Total revenues | 127,442 | 125,970 | 114,086 | ||
Foreign countries | |||||
Other revenues | |||||
Total revenues | 3,346 | 2,286 | 2,247 | ||
Total Segment | |||||
Telephone revenues | |||||
telephone revenues | 43,912 | 46,051 | |||
Interconnection revenues | 5,174 | 4,147 | |||
Data, internet and information technology service revenues | |||||
Cellular internet and data | 37,954 | 28,307 | |||
Internet, data communication and information technology services | 15,083 | 13,837 | |||
Short Messaging Services (“SMS”) | 13,192 | 15,953 | |||
Pay TV | 1,943 | 1,111 | |||
Others | 354 | 47 | |||
Total data, internet and information technology service revenues | 68,526 | 59,255 | |||
Network revenues | 1,873 | 947 | |||
Other revenues | |||||
Sales of peripherals | 2,292 | 1,489 | |||
Manage service and terminal | 535 | 788 | |||
Call center service | 970 | 514 | |||
E-health | 470 | 415 | |||
E-payment | 506 | 424 | |||
Tower lease rental | 796 | 733 | |||
Others | 3,202 | 1,570 | |||
Total other revenues | 8,771 | 5,933 | |||
Revenue from contracts with customers | 128,301 | ||||
Revenues from other source | 2,487 | ||||
Total revenues | 130,788 | 128,256 | 116,333 | ||
Adjustments and Eliminations | |||||
Other revenues | |||||
Total revenues | (41,438) | (35,698) | (31,914) | ||
Revenue From External Customers | 291 | 383 | 224 | ||
Mobile | |||||
Telephone revenues | |||||
telephone revenues | 37,144 | 38,407 | |||
Interconnection revenues | 1,672 | 1,340 | |||
Data, internet and information technology service revenues | |||||
Cellular internet and data | 37,951 | 28,304 | |||
Short Messaging Services (“SMS”) | 13,091 | 15,944 | |||
Total data, internet and information technology service revenues | 51,042 | 44,248 | |||
Network revenues | 2 | 3 | |||
Other revenues | |||||
Others | 213 | ||||
Total other revenues | 213 | ||||
Revenue from contracts with customers | 85,352 | ||||
Total revenues | 85,352 | 90,073 | 83,998 | ||
Revenue From External Customers | 85,338 | 90,073 | 83,998 | ||
Mobile | Adjustments and Eliminations | |||||
Other revenues | |||||
Revenue From External Customers | (14) | ||||
Consumer | |||||
Telephone revenues | |||||
telephone revenues | 3,757 | 4,175 | |||
Data, internet and information technology service revenues | |||||
Internet, data communication and information technology services | 6,070 | 4,683 | |||
Pay TV | 1,209 | 1,007 | |||
Others | 14 | 11 | |||
Total data, internet and information technology service revenues | 7,293 | 5,701 | |||
Network revenues | 4 | 11 | |||
Other revenues | |||||
Others | 51 | 523 | |||
Total other revenues | 51 | 523 | |||
Revenue from contracts with customers | 12,477 | ||||
Revenues from other source | 1,414 | ||||
Total revenues | 13,891 | 11,105 | 10,410 | ||
Revenue From External Customers | 13,891 | 11,105 | 10,410 | ||
Consumer | Adjustments and Eliminations | |||||
Other revenues | |||||
Revenue From External Customers | 0 | ||||
Enterprise | |||||
Telephone revenues | |||||
telephone revenues | 2,758 | 3,232 | |||
Data, internet and information technology service revenues | |||||
Internet, data communication and information technology services | 8,033 | 8,173 | |||
Short Messaging Services (“SMS”) | 99 | 6 | |||
Pay TV | 734 | 104 | |||
Others | 177 | 17 | |||
Total data, internet and information technology service revenues | 9,043 | 8,300 | |||
Network revenues | 1,177 | 301 | |||
Other revenues | |||||
Sales of peripherals | 2,292 | 1,489 | |||
Manage service and terminal | 535 | 784 | |||
Call center service | 831 | 276 | |||
E-health | 470 | 415 | |||
E-payment | 506 | 424 | |||
Others | 1,518 | 595 | |||
Total other revenues | 6,152 | 3,983 | |||
Revenue from contracts with customers | 20,860 | ||||
Revenues from other source | 164 | ||||
Total revenues | 21,024 | 19,130 | 15,816 | ||
Revenue From External Customers | 21,054 | 19,130 | 15,816 | ||
Enterprise | Adjustments and Eliminations | |||||
Other revenues | |||||
Revenue From External Customers | 30 | ||||
WIB | |||||
Telephone revenues | |||||
telephone revenues | 253 | 237 | |||
Interconnection revenues | 3,502 | 2,807 | |||
Data, internet and information technology service revenues | |||||
Cellular internet and data | 3 | 3 | |||
Internet, data communication and information technology services | 980 | 981 | |||
Short Messaging Services (“SMS”) | 2 | 3 | |||
Others | 37 | ||||
Total data, internet and information technology service revenues | 1,022 | 987 | |||
Network revenues | 690 | 632 | |||
Other revenues | |||||
Manage service and terminal | 4 | ||||
Call center service | 139 | 238 | |||
Tower lease rental | 796 | 733 | |||
Others | 1,037 | 228 | |||
Total other revenues | 1,972 | 1,203 | |||
Revenue from contracts with customers | 9,184 | ||||
Revenues from other source | 909 | ||||
Total revenues | 10,093 | 7,439 | 5,866 | ||
Revenue From External Customers | 10,084 | 7,439 | 5,866 | ||
WIB | Adjustments and Eliminations | |||||
Other revenues | |||||
Revenue From External Customers | (9) | ||||
Others | |||||
Data, internet and information technology service revenues | |||||
Others | 126 | 19 | |||
Total data, internet and information technology service revenues | 126 | 19 | |||
Other revenues | |||||
Others | 383 | 224 | |||
Total other revenues | 383 | 224 | |||
Revenue from contracts with customers | 428 | ||||
Total revenues | 428 | 509 | 243 | ||
Revenue From External Customers | 130 | 126 | 19 | ||
Others | Adjustments and Eliminations | |||||
Other revenues | |||||
Revenue From External Customers | (298) | Rp (383) | Rp (224) | ||
Telephone revenues | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 40,248 | ||||
Telephone revenues | Mobile | |||||
Other revenues | |||||
Revenue from contracts with customers | 34,338 | ||||
Telephone revenues | Consumer | |||||
Other revenues | |||||
Revenue from contracts with customers | 3,328 | ||||
Telephone revenues | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 2,298 | ||||
Telephone revenues | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 284 | ||||
Interconnection revenues | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 5,462 | ||||
Interconnection revenues | Mobile | |||||
Other revenues | |||||
Revenue from contracts with customers | 933 | ||||
Interconnection revenues | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 4,529 | ||||
Total data, internet and information technology service revenues | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 71,647 | ||||
Total data, internet and information technology service revenues | Mobile | |||||
Other revenues | |||||
Revenue from contracts with customers | 50,079 | ||||
Total data, internet and information technology service revenues | Consumer | |||||
Other revenues | |||||
Revenue from contracts with customers | 9,143 | ||||
Total data, internet and information technology service revenues | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 11,062 | ||||
Total data, internet and information technology service revenues | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,225 | ||||
Total data, internet and information technology service revenues | Others | |||||
Other revenues | |||||
Revenue from contracts with customers | 138 | ||||
Cellular internet and data | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 41,036 | ||||
Cellular internet and data | Mobile | |||||
Other revenues | |||||
Revenue from contracts with customers | 41,033 | ||||
Cellular internet and data | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 3 | ||||
Internet, data communication and information technology services | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 18,143 | ||||
Internet, data communication and information technology services | Consumer | |||||
Other revenues | |||||
Revenue from contracts with customers | 6,872 | ||||
Internet, data communication and information technology services | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 10,247 | ||||
Internet, data communication and information technology services | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,016 | ||||
Internet, data communication and information technology services | Others | |||||
Other revenues | |||||
Revenue from contracts with customers | 8 | ||||
Short Messaging Services ("SMS") | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 9,298 | ||||
Short Messaging Services ("SMS") | Mobile | |||||
Other revenues | |||||
Revenue from contracts with customers | 9,046 | ||||
Short Messaging Services ("SMS") | Consumer | |||||
Other revenues | |||||
Revenue from contracts with customers | 0 | ||||
Short Messaging Services ("SMS") | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 251 | ||||
Short Messaging Services ("SMS") | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 1 | ||||
Pay TV | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 2,326 | ||||
Pay TV | Consumer | |||||
Other revenues | |||||
Revenue from contracts with customers | 2,251 | ||||
Pay TV | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 75 | ||||
Others | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 844 | ||||
Others | Consumer | |||||
Other revenues | |||||
Revenue from contracts with customers | 20 | ||||
Others | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 486 | ||||
Others | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 208 | ||||
Others | Others | |||||
Other revenues | |||||
Revenue from contracts with customers | 130 | ||||
Network revenues | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,735 | ||||
Network revenues | Mobile | |||||
Other revenues | |||||
Revenue from contracts with customers | 2 | ||||
Network revenues | Consumer | |||||
Other revenues | |||||
Revenue from contracts with customers | 1 | ||||
Network revenues | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 712 | ||||
Network revenues | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,020 | ||||
Total other revenues | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 9,209 | ||||
Total other revenues | Consumer | |||||
Other revenues | |||||
Revenue from contracts with customers | 5 | ||||
Total other revenues | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 6,788 | ||||
Total other revenues | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 2,126 | ||||
Total other revenues | Others | |||||
Other revenues | |||||
Revenue from contracts with customers | 290 | ||||
Sale of peripherals | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,852 | ||||
Sale of peripherals | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,852 | ||||
CPE and terminal | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,449 | ||||
CPE and terminal | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,449 | ||||
CPE and terminal | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 0 | ||||
Call center service | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,052 | ||||
Call center service | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 877 | ||||
Call center service | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 167 | ||||
Call center service | Others | |||||
Other revenues | |||||
Revenue from contracts with customers | 8 | ||||
E-health | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 563 | ||||
E-health | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 563 | ||||
E-payment | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 449 | ||||
E-payment | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 449 | ||||
Others | Total Segment | |||||
Other revenues | |||||
Revenue from contracts with customers | 3,844 | ||||
Others | Consumer | |||||
Other revenues | |||||
Revenue from contracts with customers | 5 | ||||
Others | Enterprise | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,598 | ||||
Others | WIB | |||||
Other revenues | |||||
Revenue from contracts with customers | 1,959 | ||||
Others | Others | |||||
Other revenues | |||||
Revenue from contracts with customers | Rp 282 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) Rp in Billions | Dec. 31, 2018IDR (Rp) |
Less than one year | |
Revenues | |
Unsatisfied performance obligations | Rp 2,219 |
More than one year | |
Revenues | |
Unsatisfied performance obligations | Rp 2,300 |
PERSONNEL EXPENSES (Details)
PERSONNEL EXPENSES (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
PERSONNEL EXPENSES | ||||
Salaries and related benefits | Rp 8,077 | Rp 7,821 | Rp 7,122 | |
Vacation pay, incentives and other benefits | 3,292 | 3,339 | 4,219 | |
Employee benefit cost | 1,600 | 2,080 | 1,361 | |
LSA expense (Note 32) | 161 | 255 | 237 | |
Others | 47 | 34 | 45 | |
Total | $ 916 | 13,178 | 13,529 | 13,612 |
Other employee benefit cost | ||||
PERSONNEL EXPENSES | ||||
Employee benefit cost | 113 | 62 | 82 | |
Post-employment health care benefit cost | ||||
PERSONNEL EXPENSES | ||||
Employee benefit cost | 335 | 276 | 163 | |
Other post-employment benefit cost | ||||
PERSONNEL EXPENSES | ||||
Employee benefit cost | 32 | 42 | 48 | |
Early Retirement Program | ||||
PERSONNEL EXPENSES | ||||
Employee benefit cost | 1 | 628 | ||
Pension benefit cost | ||||
PERSONNEL EXPENSES | ||||
Employee benefit cost | Rp 1,120 | Rp 1,700 | Rp 1,068 |
OPERATION, MAINTENANCE AND TE_3
OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES (Details) $ in Millions, Rp in Billions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES | |||||
Operation and maintenance | Rp 25,215 | Rp 19,929 | Rp 17,047 | ||
Radio frequency usage charges (Note 33c.i) | 5,473 | 4,276 | 3,687 | ||
Leased lines and CPE | 5,125 | 5,255 | 4,141 | ||
Concession fees and USO charges | 2,297 | 2,249 | 2,217 | ||
Cost of sales of handset (Note 8) | 1,860 | 1,544 | 1,481 | ||
Electricity, gas and water | 1,051 | 1,037 | 960 | ||
Cost of SIM cards and vouchers (Note 8) | 866 | 914 | 624 | ||
Tower leases | 480 | 472 | 322 | ||
Vehicles rental and supporting facilities | 413 | 301 | 367 | ||
Insurance | 193 | 294 | 256 | ||
Other | 920 | 332 | 161 | ||
Total | Rp 43,893 | $ 3,052 | Rp 43,893 | Rp 36,603 | Rp 31,263 |
GENERAL AND ADMINISTRATIVE EX_3
GENERAL AND ADMINISTRATIVE EXPENSES (Details) $ in Millions, Rp in Billions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
GENERAL AND ADMINISTRATIVE EXPENSES | |||||
Provision for impairment of receivables | Rp 2,208 | Rp 1,494 | Rp 743 | ||
General expenses | 1,792 | 1,449 | 1,626 | ||
Professional fees | 823 | 498 | 594 | ||
Training, education and recruitment | 463 | 531 | 399 | ||
Travelling | 415 | 475 | 436 | ||
Meeting | 233 | 241 | 207 | ||
Social contribution | 181 | 197 | 134 | ||
Collection expenses | 157 | 135 | 152 | ||
Others | 322 | 240 | 319 | ||
Total | Rp 6,594 | $ 459 | Rp 6,594 | Rp 5,260 | Rp 4,610 |
TAXATION - Prepaid income taxes
TAXATION - Prepaid income taxes (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
TAXATION | |||
Total corporate income tax | Rp 914 | Rp 785 | |
Current portion | $ (1) | (20) | (22) |
Non-current portion (Note 13) | 894 | 763 | |
The company | |||
TAXATION | |||
Total corporate income tax | 494 | 610 | |
Subsidiaries | |||
TAXATION | |||
Total corporate income tax | Rp 420 | Rp 175 |
TAXATION - Prepaid other taxes
TAXATION - Prepaid other taxes (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
TAXATION | |||
Total | Rp 6,023 | Rp 5,908 | |
Current portion | $ (231) | (3,325) | (2,833) |
Non-current portion (Note 13) | 2,698 | 3,075 | |
The company | |||
TAXATION | |||
Value Added Tax (“VAT”) | 2,167 | 1,967 | |
Article 22 - Withholding tax on goods delivery and import | 1 | ||
Article 23 - Withholding tax on services delivery | 63 | 44 | |
Subsidiaries | |||
TAXATION | |||
Value Added Tax (“VAT”) | 3,792 | 3,879 | |
Article 23 - Withholding tax on services delivery | Rp 1 | Rp 17 |
TAXATION - Current income tax l
TAXATION - Current income tax liabilities (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
TAXATION | |||
Total | $ 28 | Rp 404 | Rp 801 |
The company | |||
TAXATION | |||
Article 25 - Installment of corporate income tax | 1 | 1 | |
Subsidiaries | |||
TAXATION | |||
Article 25 - Installment of corporate income tax | 14 | 37 | |
Article 29 - Corporate income tax | Rp 389 | Rp 763 |
TAXATION - Other tax liabilitie
TAXATION - Other tax liabilities (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
TAXATION | |||
Total | $ 54 | Rp 776 | Rp 1,989 |
The company | |||
TAXATION | |||
Article 4 (2) - Final tax | 18 | 26 | |
Article 21 - Individual income tax | 47 | 81 | |
Article 22 - Withholding tax on goods delivery and imports | 3 | 3 | |
Article 23 - Withholding tax on services | 36 | 29 | |
Article 26 - Withholding tax on non-resident income | 3 | 1 | |
VAT | 334 | 372 | |
Total | 441 | 512 | |
Subsidiaries | |||
TAXATION | |||
Article 4 (2) - Final tax | 75 | 85 | |
Article 21 - Individual income tax | 113 | 129 | |
Article 22 - Withholding tax on goods delivery and imports | 5 | 3 | |
Article 23 - Withholding tax on services | 110 | 115 | |
Article 26 - Withholding tax on non-resident income | 7 | 303 | |
VAT | 25 | 842 | |
Total | Rp 335 | Rp 1,477 |
TAXATION - Components of income
TAXATION - Components of income tax expense (benefit) (Details) $ in Millions, Rp in Billions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
TAXATION | |||||
Current | $ 656 | Rp 9,432 | Rp 11,357 | Rp 10,738 | |
Deferred | (4) | (66) | (1,399) | (1,721) | |
Net Income Tax Expense | Rp 9,366 | $ 652 | 9,366 | 9,958 | 9,017 |
The company | |||||
TAXATION | |||||
Current | 236 | 586 | 671 | ||
Deferred | (159) | (1,608) | (844) | ||
Subsidiaries | |||||
TAXATION | |||||
Current | 9,196 | 10,771 | 10,067 | ||
Deferred | Rp 93 | Rp 209 | Rp (877) |
TAXATION - Reconciliation of in
TAXATION - Reconciliation of income tax expense (Details) $ in Millions, Rp in Billions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
Income Tax Disclosure [Line Items] | |||||
Profit before income tax | $ 2,510 | Rp 36,077 | Rp 42,628 | Rp 38,166 | |
Less: income subject to final tax - net | (1,277) | (1,491) | (1,684) | ||
Net | 34,800 | 41,137 | 36,482 | ||
Income tax expense calculated at the Company’s applicable statutory tax rate of 20% | 6,960 | 8,228 | 7,296 | ||
Difference in applicable statutory tax rate for subsidiaries | 1,753 | 2,046 | 1,904 | ||
Non-deductible expenses | 423 | 767 | 496 | ||
Final income tax expense | 60 | 591 | 345 | ||
Deferred tax assets that cannot be utilized-net | (2) | 4 | 56 | ||
Deferred tax assets on fixed assets revaluation for tax purpose | (1,796) | (1,415) | |||
Others | 172 | 118 | 335 | ||
Net Income Tax Expense | Rp 9,366 | $ 652 | Rp 9,366 | Rp 9,958 | Rp 9,017 |
The company | |||||
Income Tax Disclosure [Line Items] | |||||
Applicable tax rate | 20.00% | 20.00% | 20.00% | 20.00% | |
Subsidiaries | |||||
Income Tax Disclosure [Line Items] | |||||
Applicable tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
TAXATION - Details of the net i
TAXATION - Details of the net income tax expense (Details) $ in Millions, Rp in Billions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($)item | Dec. 31, 2018IDR (Rp)item | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
TAXATION | |||||
Estimated taxable income (loss) of the Company | Rp 400 | Rp (861) | Rp 1,703 | ||
Total income tax expense – current | $ 656 | 9,432 | 11,357 | 10,738 | |
Net income tax benefit - deferred | (4) | (66) | (1,399) | (1,721) | |
Net Income Tax Expense | Rp 9,366 | $ 652 | 9,366 | 9,958 | 9,017 |
The company | |||||
TAXATION | |||||
Corporate income tax | 80 | 340 | |||
Current corporate income tax expense: | 99 | ||||
Final tax expense | 57 | 586 | 331 | ||
Total income tax expense – current | 236 | 586 | 671 | ||
Net income tax benefit - deferred | Rp (159) | Rp (1,608) | Rp (844) | ||
Change in tax rate | (5.00%) | (5.00%) | (5.00%) | (5.00%) | |
Threshold percentage of interest owned by public | 40.00% | 40.00% | |||
Threshold number of persons owned shares | item | 300 | 300 | |||
Threshold percentage owned by each member | 5.00% | 5.00% | |||
Threshold period to meet prescribed criteria | 183 days | 183 days | |||
Applicable tax rate | 20.00% | 20.00% | 20.00% | 20.00% | |
The company | Tax loss utilization (recognition) | |||||
TAXATION | |||||
Net income tax benefit - deferred | Rp 172 | Rp (172) | |||
The company | Net periodic pension and other post-employment benefits costs and provision for employee benefits | |||||
TAXATION | |||||
Net income tax benefit - deferred | 5 | (235) | Rp (214) | ||
The company | Finance leases | |||||
TAXATION | |||||
Net income tax benefit - deferred | 2 | 0 | 68 | ||
The company | Valuation of long-term investments | |||||
TAXATION | |||||
Net income tax benefit - deferred | (34) | ||||
The company | Depreciation and gain on disposal or sale of property and equipment | |||||
TAXATION | |||||
Net income tax benefit - deferred | (180) | (1,012) | (825) | ||
The company | Trade receivables write-off (provision for impairment of receivables) | |||||
TAXATION | |||||
Net income tax benefit - deferred | (132) | (206) | 41 | ||
The company | Realization of accrual (accrual) of expenses and inventory write-off (provision for inventory obsolescence) | |||||
TAXATION | |||||
Net income tax benefit - deferred | (36) | 26 | 142 | ||
The company | Amortization of (addition to) deferred installation fee | |||||
TAXATION | |||||
Net income tax benefit - deferred | (18) | 1 | (10) | ||
The company | Amortization of intangible assets, land rights and others | |||||
TAXATION | |||||
Net income tax benefit - deferred | (10) | (10) | (12) | ||
Subsidiaries | |||||
TAXATION | |||||
Corporate income tax | 9,193 | 10,766 | 10,053 | ||
Final tax expense | 3 | 5 | 14 | ||
Total income tax expense – current | 9,196 | 10,771 | 10,067 | ||
Net income tax benefit - deferred | Rp 93 | Rp 209 | Rp (877) | ||
Applicable tax rate | 25.00% | 25.00% | 25.00% | 25.00% | |
Telkomsel | |||||
TAXATION | |||||
Net income tax benefit - deferred | Rp 121 | Rp 25 | Rp (813) | ||
Telkomsel | Cost to obtain contracts | |||||
TAXATION | |||||
Net income tax benefit - deferred | 38 | ||||
Telkomsel | Finance leases | |||||
TAXATION | |||||
Net income tax benefit - deferred | 170 | 177 | 164 | ||
Telkomsel | Depreciation and gain on disposal or sale of property and equipment | |||||
TAXATION | |||||
Net income tax benefit - deferred | 64 | (55) | (913) | ||
Telkomsel | Trade receivables write-off (provision for impairment of receivables) | |||||
TAXATION | |||||
Net income tax benefit - deferred | (88) | (41) | (5) | ||
Telkomsel | Amortization of (addition to) license | |||||
TAXATION | |||||
Net income tax benefit - deferred | 58 | 12 | (4) | ||
Telkomsel | Provision for employee benefits | |||||
TAXATION | |||||
Net income tax benefit - deferred | (83) | (68) | (55) | ||
Subsidiaries - others | |||||
TAXATION | |||||
Net income tax benefit - deferred | Rp (28) | Rp 184 | Rp (64) |
TAXATION - Tax assessments (Det
TAXATION - Tax assessments (Details) Rp in Millions, $ in Millions | Aug. 24, 2018IDR (Rp) | Jul. 18, 2018IDR (Rp) | Jun. 07, 2018IDR (Rp) | Jan. 09, 2018IDR (Rp) | Oct. 19, 2017IDR (Rp) | Sep. 11, 2017IDR (Rp) | Aug. 25, 2017IDR (Rp) | Aug. 02, 2017 | Jul. 24, 2017IDR (Rp) | May 09, 2017IDR (Rp) | Apr. 25, 2017IDR (Rp) | Apr. 05, 2017 | Mar. 01, 2017IDR (Rp) | Aug. 23, 2016IDR (Rp) | Aug. 19, 2016IDR (Rp) | May 03, 2016IDR (Rp) | May 24, 2012IDR (Rp) | Apr. 21, 2010IDR (Rp) | Oct. 31, 2018IDR (Rp) | Jul. 31, 2018IDR (Rp) | May 22, 2018IDR (Rp) | Sep. 30, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Nov. 30, 2014IDR (Rp) | Dec. 31, 2013IDR (Rp) | Nov. 30, 2013IDR (Rp) | Jun. 30, 2012IDR (Rp) | Nov. 30, 2017IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Aug. 31, 2018IDR (Rp) | Nov. 30, 2016IDR (Rp) | Jul. 31, 2016IDR (Rp) |
TAXATION | |||||||||||||||||||||||||||||||||||
Current | $ 656 | Rp 9,432,000 | Rp 11,357,000 | Rp 10,738,000 | |||||||||||||||||||||||||||||||
VAT 2007 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Refund tax received | Rp 115,000 | ||||||||||||||||||||||||||||||||||
Remaining amount used to compensate withholding tax article 21 | Rp 5,000 | ||||||||||||||||||||||||||||||||||
Corporate income tax 2016 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Tax credited to profit and loss | Rp 15,300 | ||||||||||||||||||||||||||||||||||
VAT on taxable services from foreign countries | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | Rp 1,800 | ||||||||||||||||||||||||||||||||||
The company | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Current | 236,000 | 586,000 | 671,000 | ||||||||||||||||||||||||||||||||
Recalculated input tax credit | Rp 35,000 | ||||||||||||||||||||||||||||||||||
The company | VAT 2007 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | Rp 142,000 | ||||||||||||||||||||||||||||||||||
Tax charged to profit or loss | 22,000 | ||||||||||||||||||||||||||||||||||
Penalty charged to profit or loss | 10,000 | ||||||||||||||||||||||||||||||||||
Claim for tax refund | 120,000 | ||||||||||||||||||||||||||||||||||
Claim for tax refund - Penalty | Rp 39,000 | ||||||||||||||||||||||||||||||||||
VAT rate | 0 | 0 | |||||||||||||||||||||||||||||||||
The company | VAT 2011 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | Rp 182,500 | ||||||||||||||||||||||||||||||||||
Underpayment of penalty | 60,000 | ||||||||||||||||||||||||||||||||||
Tax charged to profit or loss | 4,700 | ||||||||||||||||||||||||||||||||||
Penalty charged to profit or loss | 2,000 | ||||||||||||||||||||||||||||||||||
Claim for tax refund | 178,000 | ||||||||||||||||||||||||||||||||||
Claim for tax refund - Penalty | 58,000 | ||||||||||||||||||||||||||||||||||
The company | Corporate income tax 2011 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 2,800 | ||||||||||||||||||||||||||||||||||
Underpayment of penalty | Rp 929 | ||||||||||||||||||||||||||||||||||
The company | Corporate income tax 2012 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | Rp 496,400 | 991,600 | |||||||||||||||||||||||||||||||||
Underpayment of penalty | 161,000 | 321,600 | |||||||||||||||||||||||||||||||||
Recalculated input tax credit | 613 | ||||||||||||||||||||||||||||||||||
The company | Field tax audit 2016 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Refund tax received | Rp 882,700 | ||||||||||||||||||||||||||||||||||
Remaining amount used to compensate STP | 39,900 | ||||||||||||||||||||||||||||||||||
Remaining amount used to compensate VAT | 31,900 | ||||||||||||||||||||||||||||||||||
Remaining amount used to compensate withholding tax article 21 | 300 | ||||||||||||||||||||||||||||||||||
Remaining amount used to compensate withholding tax article 23 | 556 | ||||||||||||||||||||||||||||||||||
Tax collection amount | 10,500 | ||||||||||||||||||||||||||||||||||
VAT on tax collected | Rp 7,100 | ||||||||||||||||||||||||||||||||||
Amount of objection filed for VAT international incoming call interconnection services | Rp 151,000 | ||||||||||||||||||||||||||||||||||
Amount of objection filed STP for VAT | Rp 30,300 | ||||||||||||||||||||||||||||||||||
The company | Corporate income tax 2016 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Overpayment of tax | 15,300 | Rp 114,400 | |||||||||||||||||||||||||||||||||
Current | 99,100 | ||||||||||||||||||||||||||||||||||
The company | VAT 2016 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Overpayment of tax | 923 | ||||||||||||||||||||||||||||||||||
Tax collection amount | 1,700 | ||||||||||||||||||||||||||||||||||
The company | VAT 2016 on tax collected | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Tax collection amount | 7,100 | ||||||||||||||||||||||||||||||||||
The company | VAT on free gifts | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Tax collection amount | 7,300 | ||||||||||||||||||||||||||||||||||
The company | VAT on transfer asset | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Tax collection amount | 1,200 | ||||||||||||||||||||||||||||||||||
The company | VAT 2012 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 429,300 | 467,000 | |||||||||||||||||||||||||||||||||
Underpayment of penalty | 141,200 | 153,500 | |||||||||||||||||||||||||||||||||
The company | VAT on taxable services from foreign countries | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 1,800 | 1,200 | |||||||||||||||||||||||||||||||||
Underpayment of penalty | Rp 600 | 392 | |||||||||||||||||||||||||||||||||
Tax collection amount | Rp 76,000 | ||||||||||||||||||||||||||||||||||
Sought value | Rp 54,000 | ||||||||||||||||||||||||||||||||||
The company | VAT 2012 on tax collected | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | Rp 4,400 | 57,000 | |||||||||||||||||||||||||||||||||
Underpayment of penalty | Rp 1,400 | 18,500 | |||||||||||||||||||||||||||||||||
The company | VAT on tax collected two | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 37,500 | ||||||||||||||||||||||||||||||||||
The company | Withholding tax Article 21 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 20,700 | 16,200 | |||||||||||||||||||||||||||||||||
Underpayment of penalty | 6,700 | 5,300 | |||||||||||||||||||||||||||||||||
The company | Final Withholding tax Article 21 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 23,800 | 1,200 | |||||||||||||||||||||||||||||||||
Underpayment of penalty | 7,700 | 407 | |||||||||||||||||||||||||||||||||
The company | Withholding tax Article 23 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 115,700 | 63,500 | |||||||||||||||||||||||||||||||||
Underpayment of penalty | 37,500 | 20,600 | |||||||||||||||||||||||||||||||||
The company | Withholding tax Article 4(2) | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 25,000 | 25,000 | |||||||||||||||||||||||||||||||||
Underpayment of penalty | 8,100 | 8,100 | |||||||||||||||||||||||||||||||||
The company | Withholding tax Article 26 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 197,600 | 197,600 | |||||||||||||||||||||||||||||||||
Underpayment of penalty | Rp 64,100 | 64,000 | |||||||||||||||||||||||||||||||||
Overpayment of tax | 557 | ||||||||||||||||||||||||||||||||||
Recalculated input tax credit | Rp 311.5 | ||||||||||||||||||||||||||||||||||
Refund penalty received | Rp 180 | ||||||||||||||||||||||||||||||||||
The company | Corporate income tax 2015 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Overpayment of tax | Rp 147,000 | Rp 414,000 | |||||||||||||||||||||||||||||||||
Amount accepted | 17,000 | ||||||||||||||||||||||||||||||||||
Transfer of temporary differences related to provision for incentives to fixed wireless subscribers migration from fiscal year 2015 to fiscal year 2016. | 42,000 | ||||||||||||||||||||||||||||||||||
Sought value | Rp 210,500 | ||||||||||||||||||||||||||||||||||
The company | VAT 2015 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 13,000 | ||||||||||||||||||||||||||||||||||
Underpayment of penalty | 4,000 | ||||||||||||||||||||||||||||||||||
Tax collection amount | 34,000 | ||||||||||||||||||||||||||||||||||
VAT on tax collected | 26,000 | ||||||||||||||||||||||||||||||||||
The company | VAT 2015 on tax collected | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 6,000 | ||||||||||||||||||||||||||||||||||
Underpayment of penalty | 1,500 | ||||||||||||||||||||||||||||||||||
Tax collection amount | 7,000 | ||||||||||||||||||||||||||||||||||
The company | VAT 2015 on taxable services from foreign countries | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | 55,000 | ||||||||||||||||||||||||||||||||||
Underpayment of penalty | 17,000 | ||||||||||||||||||||||||||||||||||
Tax collection amount | Rp 8,000 | ||||||||||||||||||||||||||||||||||
Sought value | Rp 55,000 | ||||||||||||||||||||||||||||||||||
The company | Field tax audit 2014 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | Rp 86,700 | Rp 129,000 | |||||||||||||||||||||||||||||||||
Refund tax received | Rp 122,500 | Rp 80,800 | |||||||||||||||||||||||||||||||||
Remaining amount used to compensate to SKPKBs for self-assessed offshore VAT | Rp 3,600 | ||||||||||||||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Current | Rp 9,196,000 | Rp 10,771,000 | Rp 10,067,000 | ||||||||||||||||||||||||||||||||
Telkomsel | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Claim for tax refund - Penalty | Rp 15,700 | ||||||||||||||||||||||||||||||||||
Telkomsel | Corporate income tax 2011 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Claim for tax refund | Rp 1,200 | ||||||||||||||||||||||||||||||||||
Rejected portion of objection letters | Rp 1,100 | ||||||||||||||||||||||||||||||||||
Decrease in tax refund | Rp 62,000 | ||||||||||||||||||||||||||||||||||
Telkomsel | 2006 VAT and withholding taxes | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Sought value | Rp 116,000 | ||||||||||||||||||||||||||||||||||
Telkomsel | 2006 VAT in Supreme court | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Sought value | Rp 108,000 | ||||||||||||||||||||||||||||||||||
Telkomsel | Income tax Article 25, December 2008 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | Rp 429,000 | ||||||||||||||||||||||||||||||||||
Underpayment of penalty | Rp 8,400 | ||||||||||||||||||||||||||||||||||
Telkomsel | 2010 Income tax Article 25 | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Refund penalty received | Rp 15,700 | ||||||||||||||||||||||||||||||||||
Telkomsel | 2010 VAT | |||||||||||||||||||||||||||||||||||
TAXATION | |||||||||||||||||||||||||||||||||||
Underpayment of tax | Rp 290,600 | ||||||||||||||||||||||||||||||||||
Underpayment of penalty | Rp 67,000 |
TAXATION - Tax incentives (Deta
TAXATION - Tax incentives (Details) - IDR (Rp) Rp in Billions | Sep. 22, 2017 | Dec. 29, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 21, 2017 | Dec. 15, 2016 | Nov. 10, 2016 |
TAXATION | ||||||||
Final income tax rate, maximum | 3.00% | |||||||
Final income tax rate, minimum | 6.00% | |||||||
Advance payment on revaluation | Rp 2 | Rp 750 | ||||||
Period for approval of revaluation | 30 days | |||||||
Approved portion of revaluation of fixed assets - phase one | Rp 212 | |||||||
Approved portion of revaluation of fixed assets - phase two | Rp 540 | Rp 540 | Rp 538 | |||||
Estimated increment in revaluation of fixed assets | 8,982 | Rp 8,982 | Rp 8,961 | Rp 7,078 | ||||
Deferred tax assets on fixed assets revaluation for tax purpose | Rp 1,796 | Rp 1,415 |
TAXATION - Deferred tax assets
TAXATION - Deferred tax assets and liabilities (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | |
TAXATION | ||||||
Total deferred tax assets at the beginning | Rp 2,804 | |||||
Total deferred tax assets at the beginning | 2,804 | Rp 769 | ||||
Effect from Initial application of new IFRS | (82) | |||||
(Charged) credited to profit or loss | 234 | 1,588 | ||||
(Charged) credited to other comprehensive income | (474) | 351 | ||||
Reclassification | 96 | |||||
(Charged) credited to equity | (5) | |||||
Total deferred tax assets at the ending | 2,804 | Rp 769 | ||||
Total deferred tax assets at the ending | $ 172 | 2,477 | 2,804 | |||
Total deferred tax liabilities at the beginning | (933) | |||||
Total deferred tax liabilities at the beginning | (933) | (745) | ||||
Effect from Initial application of new IFRS | 82 | |||||
Total deferred tax liabilities at the ending | (933) | (745) | ||||
Total deferred tax liabilities at the ending | $ (83) | (1,197) | (933) | |||
(Charged) credited to profit or loss | (168) | (189) | ||||
(Charged) credited to other comprehensive income | (124) | 143 | ||||
Reclassification | (142) | |||||
(Charged) credited to equity | (54) | |||||
Total deferred tax liabilities at the ending | (1,197) | |||||
Deferred tax assets - net | 2,804 | 769 | 769 | Rp 2,804 | ||
Temporary differences associated with investments in subsidiaries and associated companies, for which deferred tax liabilities have not been recognized | Rp 31,296 | 31,783 | ||||
The company | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 2,471 | |||||
Total deferred tax assets at the beginning | 2,461 | 511 | ||||
Total deferred tax assets at the beginning | 2,473 | 533 | ||||
Effect from Initial application of new IFRS | (40) | |||||
Effect from Initial application of new IFRS | (82) | |||||
(Charged) credited to profit or loss | 199 | 1,598 | ||||
(Charged) credited to other comprehensive income | (466) | 342 | ||||
Total deferred tax assets at the ending | 2,461 | 511 | ||||
Total deferred tax assets at the ending | 2,164 | 2,471 | ||||
Total deferred tax assets at the ending | 2,473 | 533 | ||||
Total deferred tax liabilities at the beginning | (12) | (22) | ||||
Total deferred tax liabilities at the beginning | (10) | |||||
Effect from Initial application of new IFRS | (42) | |||||
(Charged) credited to profit or loss | (40) | 10 | ||||
Total deferred tax liabilities at the ending | (92) | (10) | ||||
Total deferred tax liabilities at the ending | (12) | (22) | ||||
(Charged) credited to profit or loss | 159 | 1,608 | ||||
(Charged) credited to other comprehensive income | (466) | 342 | ||||
Total deferred tax liabilities at the ending | 2,072 | |||||
Deferred tax assets - net | Rp 2,461 | Rp 511 | Rp 511 | 2,461 | ||
Change in tax rate | (5.00%) | (5.00%) | (5.00%) | (5.00%) | ||
Applicable tax rate | 20.00% | 20.00% | 20.00% | 20.00% | ||
The company | Net periodic pension and other post-employment benefits costs | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | Rp 1,102 | Rp 563 | ||||
Total deferred tax assets at the beginning | 1,102 | |||||
(Charged) credited to profit or loss | 27 | 197 | ||||
(Charged) credited to other comprehensive income | (466) | 342 | ||||
Total deferred tax assets at the ending | 663 | 1,102 | ||||
Total deferred tax assets at the ending | 1,102 | Rp 563 | ||||
Deferred tax assets - net | 1,102 | 1,102 | 663 | 1,102 | ||
The company | Provision for impairment of receivables | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 594 | 388 | ||||
Total deferred tax assets at the beginning | 594 | |||||
Effect from Initial application of new IFRS | (40) | |||||
(Charged) credited to profit or loss | 132 | 206 | ||||
Total deferred tax assets at the ending | 686 | 594 | ||||
Total deferred tax assets at the ending | 594 | 388 | ||||
Deferred tax assets - net | 594 | 594 | 686 | 594 | ||
The company | Provision for employee benefits | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 247 | 209 | ||||
Total deferred tax assets at the beginning | 247 | |||||
(Charged) credited to profit or loss | (32) | 38 | ||||
Total deferred tax assets at the ending | 215 | 247 | ||||
Total deferred tax assets at the ending | 247 | 209 | ||||
Deferred tax assets - net | 247 | 247 | 215 | 247 | ||
The company | Difference between accounting and tax bases of property and equipment | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 240 | 772 | ||||
(Charged) credited to profit or loss | 180 | 1,012 | ||||
Total deferred tax assets at the ending | 420 | 240 | 772 | |||
Deferred tax assets - net | 240 | 772 | 772 | 420 | 240 | |
The company | Fiscal loss | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 172 | |||||
Total deferred tax assets at the beginning | 172 | |||||
(Charged) credited to profit or loss | (172) | 172 | ||||
Total deferred tax assets at the ending | 172 | |||||
Total deferred tax assets at the ending | 172 | |||||
Deferred tax assets - net | 172 | 172 | 172 | |||
The company | Deferred installation fee | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 74 | 75 | ||||
Total deferred tax assets at the beginning | 74 | |||||
(Charged) credited to profit or loss | 18 | (1) | ||||
Total deferred tax assets at the ending | 92 | 74 | ||||
Total deferred tax assets at the ending | 74 | 75 | ||||
Deferred tax assets - net | 74 | 74 | 92 | 74 | ||
The company | Accrued expenses and provision for inventory obsolescence | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 43 | 69 | ||||
Total deferred tax assets at the beginning | 43 | |||||
(Charged) credited to profit or loss | 36 | (26) | ||||
Total deferred tax assets at the ending | 79 | 43 | ||||
Total deferred tax assets at the ending | 43 | 69 | ||||
Deferred tax assets - net | 43 | 43 | 79 | 43 | ||
The company | Cost to obtain contracts | ||||||
TAXATION | ||||||
Effect from Initial application of new IFRS | (42) | |||||
(Charged) credited to profit or loss | (38) | |||||
Total deferred tax liabilities at the ending | (80) | |||||
The company | Valuation of long-term investments | ||||||
TAXATION | ||||||
Total deferred tax liabilities at the beginning | (11) | (11) | ||||
Total deferred tax liabilities at the ending | (11) | |||||
Total deferred tax liabilities at the ending | (11) | (11) | ||||
The company | Finance leases | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 1 | 1 | ||||
(Charged) credited to profit or loss | 0 | |||||
Total deferred tax assets at the ending | 1 | 1 | ||||
Total deferred tax liabilities at the beginning | 1 | |||||
(Charged) credited to profit or loss | (2) | |||||
Total deferred tax liabilities at the ending | (1) | 1 | ||||
The company | Land rights, intangible assets and others | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | (1) | |||||
(Charged) credited to profit or loss | 10 | |||||
Total deferred tax assets at the ending | 9 | (1) | ||||
Total deferred tax liabilities at the beginning | (1) | (11) | ||||
(Charged) credited to profit or loss | 10 | |||||
Total deferred tax liabilities at the ending | (1) | Rp (11) | ||||
Deferred tax assets - net | Rp (1) | Rp (1) | Rp 9 | (1) | ||
Subsidiaries | ||||||
TAXATION | ||||||
Applicable tax rate | 25.00% | 25.00% | 25.00% | 25.00% | ||
Telkomsel | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | Rp 861 | Rp 621 | ||||
Effect from Initial application of new IFRS | 98 | |||||
(Charged) credited to profit or loss | 171 | 109 | ||||
(Charged) credited to other comprehensive income | (119) | 131 | ||||
Total deferred tax assets at the ending | 1,011 | 861 | Rp 621 | |||
Total deferred tax liabilities at the beginning | (1,338) | (1,079) | ||||
Total deferred tax liabilities at the beginning | (477) | (458) | ||||
Effect from Initial application of new IFRS | 98 | |||||
(Charged) credited to profit or loss | (292) | (134) | ||||
Reclassification | (125) | |||||
Total deferred tax liabilities at the ending | (477) | (458) | ||||
Total deferred tax liabilities at the ending | (1,630) | (1,338) | (1,079) | |||
(Charged) credited to profit or loss | (121) | (25) | ||||
(Charged) credited to other comprehensive income | (119) | 131 | ||||
Reclassification | (125) | |||||
Total deferred tax liabilities at the ending | (619) | |||||
Telkomsel | Provision for impairment of receivables | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 184 | 143 | ||||
Effect from Initial application of new IFRS | 98 | |||||
(Charged) credited to profit or loss | 88 | 41 | ||||
Total deferred tax assets at the ending | 370 | 184 | 143 | |||
Telkomsel | Provision for employee benefits | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 677 | 478 | ||||
(Charged) credited to profit or loss | 83 | 68 | ||||
(Charged) credited to other comprehensive income | (119) | 131 | ||||
Total deferred tax assets at the ending | 641 | 677 | 478 | |||
Telkomsel | Difference between accounting and tax bases of property and equipment | ||||||
TAXATION | ||||||
Total deferred tax liabilities at the beginning | (552) | (482) | ||||
(Charged) credited to profit or loss | (64) | 55 | ||||
Reclassification | (125) | |||||
Total deferred tax liabilities at the ending | (616) | (552) | (482) | |||
Telkomsel | Finance leases | ||||||
TAXATION | ||||||
Total deferred tax liabilities at the beginning | (726) | (549) | ||||
(Charged) credited to profit or loss | (170) | (177) | ||||
Total deferred tax liabilities at the ending | (896) | (726) | (549) | |||
Telkomsel | License amortization | ||||||
TAXATION | ||||||
Total deferred tax liabilities at the beginning | (60) | (48) | ||||
(Charged) credited to profit or loss | (58) | (12) | ||||
Total deferred tax liabilities at the ending | (118) | (60) | (48) | |||
Subsidiaries - others | ||||||
TAXATION | ||||||
Total deferred tax assets at the beginning | 343 | 258 | ||||
Effect from Initial application of new IFRS | 0 | |||||
(Charged) credited to profit or loss | 75 | (20) | ||||
(Charged) credited to other comprehensive income | (8) | 9 | ||||
(Charged) credited to equity | (5) | 96 | ||||
Total deferred tax assets at the ending | 343 | 258 | ||||
Total deferred tax assets at the ending | 405 | |||||
Total deferred tax liabilities at the beginning | (456) | (287) | ||||
Effect from Initial application of new IFRS | (16) | |||||
Total deferred tax liabilities at the ending | (456) | (287) | ||||
(Charged) credited to profit or loss | (47) | (164) | ||||
(Charged) credited to other comprehensive income | (5) | 12 | ||||
Reclassification | (54) | (17) | ||||
Total deferred tax liabilities at the ending | (578) | |||||
Deferred tax assets - net | Rp 343 | Rp 258 | Rp 258 | Rp 343 |
PENSION AND OTHER POST-EMPLOY_3
PENSION AND OTHER POST-EMPLOYMENT BENEFITS (Details) Rp in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2018IDR (Rp) | |
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | $ 386 | Rp 10,195,000 | Rp 5,555,000 | ||
Employee benefit cost | Rp 1,600,000 | 2,080,000 | Rp 1,361,000 | ||
Amounts recognized in OCI | 5,418,000 | (2,869,000) | (2,266,000) | ||
Deferred tax effect at the applicable tax rates | (598,000) | 494,000 | 208,000 | ||
Defined benefit plan actuarial gain (loss) - net of tax | $ 335 | 4,820,000 | (2,375,000) | (2,058,000) | |
Other employee benefit cost | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 427,000 | 507,000 | |||
Employee benefit cost | 113,000 | 62,000 | 82,000 | ||
Amounts recognized in OCI | 14,000 | (72,000) | (33,000) | ||
Post-employment health care benefit cost | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 2,419,000 | 195,000 | |||
Employee benefit cost | 335,000 | 276,000 | 163,000 | ||
Amounts recognized in OCI | 2,559,000 | (551,000) | (1,309,000) | ||
Defined benefit plan actuarial gain (loss) - net of tax | 2,559,000 | (551,000) | (1,309,000) | ||
Other post-employment benefit cost | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 510,000 | 419,000 | |||
Employee benefit cost | 32,000 | 42,000 | 48,000 | ||
Amounts recognized in OCI | 24,000 | (40,000) | (20,000) | ||
Defined benefit plan actuarial gain (loss) - net of tax | 24,000 | (40,000) | (20,000) | ||
Pension benefit cost | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 6,839,000 | 4,434,000 | |||
Employee benefit cost | 1,120,000 | 1,700,000 | 1,068,000 | ||
Pension benefit cost | Telkomsel | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 1,839,000 | 1,541,000 | |||
Employee benefit cost | 342,000 | 247,000 | 181,000 | ||
Amounts recognized in OCI | 514,000 | (530,000) | (292,000) | ||
Defined benefit plan actuarial gain (loss) - net of tax | 514,000 | (530,000) | (292,000) | ||
Pension benefit cost | Telkomsat | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 0 | 0 | |||
Employee benefit cost | 0 | 0 | 0 | ||
Amounts recognized in OCI | 0 | 0 | 0 | ||
Pension benefit cost | MD Media | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 0 | 0 | |||
Employee benefit cost | 0 | 0 | 0 | ||
Amounts recognized in OCI | 0 | (2,000) | (1,000) | ||
Pension benefit cost | Infomedia | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 0 | ||||
Employee benefit cost | 0 | 0 | 0 | ||
Amounts recognized in OCI | 0 | (1,000) | 0 | ||
Additional pension benefit obligation | |||||
Disclosure of defined benefit plans [line items] | |||||
Defined benefit plan actuarial gain (loss) - net of tax | 934,000 | (419,000) | |||
The company | Funded pension | |||||
Disclosure of defined benefit plans [line items] | |||||
Employee benefit cost | 511,000 | 557,000 | 608,000 | ||
Defined benefit plan actuarial gain (loss) - net of tax | 1,236,000 | (1,154,000) | (492,000) | ||
The company | Defined pension benefit obligation | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 1,540,000 | 1,057,000 | |||
Employee benefit cost | 511,000 | 557,000 | 608,000 | ||
Amounts recognized in OCI | 1,236,000 | (1,154,000) | (492,000) | ||
The company | Additional pension benefit obligation | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 1,076,000 | 6,000 | |||
Employee benefit cost | 69,000 | 657,000 | |||
Amounts recognized in OCI | 934,000 | (419,000) | |||
The company | Unfunded Pension | |||||
Disclosure of defined benefit plans [line items] | |||||
Pension benefits and other post-employment benefit obligations | 2,384,000 | Rp 1,830,000 | |||
Employee benefit cost | 198,000 | 239,000 | 279,000 | ||
Amounts recognized in OCI | 137,000 | (100,000) | (119,000) | ||
Defined benefit plan actuarial gain (loss) - net of tax | Rp 137,000 | Rp (100,000) | Rp (119,000) |
PENSION AND OTHER POST-EMPLOY_4
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Pension benefit cost (Details) - Funded pension - The company - IDR (Rp) Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Mar. 01, 2003 | Feb. 28, 2003 | |
Disclosure of net defined benefit liability (asset) [line items] | ||||
Percentage of participating employees contribution | 18.00% | 8.40% | ||
Pension benefit obligations at beginning of year | Rp 1,540 | |||
Return on plan assets (excluding amount included in net interest expense) | 1,455 | Rp (1,708) | ||
Provision of additional benefit | (205) | |||
Pension benefit obligations at end of year | 1,057 | 1,540 | ||
Present value of the defined benefit obligations | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Pension benefit obligations at beginning of year | 22,354 | 18,849 | ||
Service costs | 384 | 366 | ||
Past service cost - plan amendments | 94 | |||
Interest costs | 1,459 | 1,454 | ||
Pension plan participants’ contributions | (38) | (41) | ||
Actuarial losses recognized in OCI | (2,691) | 2,862 | ||
Pension benefits paid | (1,423) | (1,312) | ||
Pension benefit obligations at end of year | 20,121 | 22,354 | ||
Plan assets | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Pension benefit obligations at beginning of year | (20,814) | (19,046) | ||
Interest costs | (1,357) | (1,388) | ||
Return on plan assets (excluding amount included in net interest expense) | (1,455) | 1,708 | ||
Pension plan participants’ contributions | 38 | 41 | ||
Pension benefits paid | 1,423 | 1,312 | ||
Provision of additional benefit | (205) | |||
Plan administration costs | (62) | (57) | ||
Pension benefit obligations at end of year | Rp (19,064) | Rp (20,814) |
PENSION AND OTHER POST-EMPLOY_5
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Pension benefit cost (Plan Assets) (Details) - The company - Funded pension - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Corporate bonds | ||
Plan Assets | ||
Fixed income instruments | Rp 314 | Rp 340 |
Level 1 | ||
Plan Assets | ||
Cash and cash equivalents | 873 | 1,481 |
Equity-based mutual fund | 1,336 | 1,233 |
Total | 13,023 | 14,647 |
Level 1 | Finance | ||
Plan Assets | ||
Equity instruments | 1,456 | 1,463 |
Level 1 | Consumer goods | ||
Plan Assets | ||
Equity instruments | 1,336 | 1,411 |
Level 1 | Infrastructure, utilities and transportation | ||
Plan Assets | ||
Equity instruments | 530 | 656 |
Level 1 | Construction, property and real estate | ||
Plan Assets | ||
Equity instruments | 199 | 363 |
Level 1 | Basic industry and chemical | ||
Plan Assets | ||
Equity instruments | 124 | 115 |
Level 1 | Trading, service and investment | ||
Plan Assets | ||
Equity instruments | 420 | 388 |
Level 1 | Mining | ||
Plan Assets | ||
Equity instruments | 112 | 92 |
Level 1 | Agriculture | ||
Plan Assets | ||
Equity instruments | 55 | 46 |
Level 1 | Miscellaneous industries | ||
Plan Assets | ||
Equity instruments | 362 | 377 |
Level 1 | Government bonds | ||
Plan Assets | ||
Fixed income instruments | 6,166 | 6,968 |
Level 1 | Mutual funds | ||
Plan Assets | ||
Fixed income instruments | 54 | 54 |
Unquoted | ||
Plan Assets | ||
Direct placement | 288 | 237 |
Property | 178 | 188 |
Others | 308 | 314 |
Total | 6,041 | 6,167 |
Unquoted | Corporate bonds | ||
Plan Assets | ||
Fixed income instruments | Rp 5,267 | Rp 5,428 |
PENSION AND OTHER POST-EMPLOY_6
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Plan Details (Details) - The company - Funded pension - IDR (Rp) Rp in Millions | Jun. 07, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of defined benefit plans [line items] | |||
Percentage of companies share in total plan assets | 1.95% | 2.25% | |
Percentage of Debt Instruments Contributed to Fair Value of Plan Assets | 1.65% | 1.64% | |
Actual return on plan asset | Rp (158,000) | Rp 3,039,000 | |
Minimum FSR required for non contribution to fund | 105.00% | ||
Funding sufficiency ratio | 105.00% | ||
Projected pension benefit obligations (prepaid pension benefit cost) at beginning of year | Rp 1,540,000 | (197,000) | |
Net periodic pension benefit cost | 548,000 | 583,000 | |
Provision of additional pension benefit | 205,000 | ||
Actuarial gain (losses) recognised in OCI | (2,691,000) | 2,862,000 | |
Return on plan assets (excluding amount included in net interest expense) | 1,455,000 | (1,708,000) | |
Projected pension benefit obligations at end of year | 1,057,000 | 1,540,000 | |
Series B shares | |||
Disclosure of defined benefit plans [line items] | |||
Equity instruments | 372,000 | 469,000 | |
Corporate bonds | |||
Disclosure of defined benefit plans [line items] | |||
Debt instruments | 314,000 | Rp 340,000 | |
Retired before end of June 2002 | |||
Disclosure of defined benefit plans [line items] | |||
One time benefits paid | Rp 4,500 | ||
Retired starting from end of June 2002 until end of April 2017 | |||
Disclosure of defined benefit plans [line items] | |||
One time benefits paid | Rp 2,250 |
PENSION AND OTHER POST-EMPLOY_7
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Components of net periodic pension benefit cost (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
Disclosure of defined benefit plans [line items] | ||||
Net periodic pension benefit cost | Rp 1,600 | Rp 2,080 | Rp 1,361 | |
Defined benefit plan actuarial gain (loss) - net of tax | $ (335) | (4,820) | 2,375 | 2,058 |
Pension benefit cost | ||||
Disclosure of defined benefit plans [line items] | ||||
Net periodic pension benefit cost | 1,120 | 1,700 | 1,068 | |
The company | Funded pension | ||||
Disclosure of defined benefit plans [line items] | ||||
Service costs | 384 | 366 | 363 | |
Past service cost - plan amendments | 94 | 245 | ||
Plan administration cost | 62 | 57 | 46 | |
Net interest cost | 102 | 66 | (14) | |
Net periodic pension benefit cost | 548 | 583 | 640 | |
Amount charged to subsidiaries under contractual agreements | (37) | (26) | (32) | |
Net periodic pension benefit cost | 511 | 557 | 608 | |
Experience adjustments | 329 | 163 | 70 | |
Changes in demographic assumptions | 140 | |||
Changes in financial assumptions | (3,020) | 2,699 | 1,470 | |
Return on plan assets (excluding amount included in net interest expense) | 1,455 | (1,708) | (1,188) | |
Defined benefit plan actuarial gain (loss) - net of tax | Rp (1,236) | Rp 1,154 | Rp 492 | |
Discount rate | 8.25% | 8.25% | 6.75% | 8.00% |
Rate of compensation increases | 8.00% | 8.00% | 8.00% | 8.00% |
PENSION AND OTHER POST-EMPLOY_8
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Additional pension benefit cost (Details) - Additional pension benefit obligation - The company. - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension benefit obligations at beginning of year | Rp 1,076 | |
Past service costs | Rp 657 | |
Interest costs | 69 | |
Actuarial losses (gain) recognised in OCI | (948) | 419 |
Provision of additional pension benefit | (205) | |
Return on plan assets (excluding amount included in net interest expense) | 14 | |
Pension benefit obligations at end of year | 6 | 1,076 |
Present value of the defined benefit obligations | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension benefit obligations at beginning of year | 1,076 | |
Past service costs | 657 | |
Interest costs | 69 | |
Actuarial losses (gain) recognised in OCI | 948 | (419) |
Pension benefits paid | (93) | |
Pension benefit obligations at end of year | 104 | Rp 1,076 |
Plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Provision of additional pension benefit | 205 | |
Return on plan assets (excluding amount included in net interest expense) | (14) | |
Pension benefits paid | (93) | |
Pension benefit obligations at end of year | Rp 98 |
PENSION AND OTHER POST-EMPLOY_9
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Components of net periodic additional pension benefit cost (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
Disclosure of defined benefit plans [line items] | ||||
Defined benefit plan actuarial gain (loss) - net of tax | $ (335) | Rp (4,820) | Rp 2,375 | Rp 2,058 |
Additional pension benefit obligation | ||||
Disclosure of defined benefit plans [line items] | ||||
Past service costs | 657 | |||
Interest costs | 69 | |||
Net periodic pension benefit cost | 69 | 657 | ||
Experience adjustments | (773) | |||
Changes in financial assumptions | (175) | 419 | ||
Return on plan assets (excluding amount included in net interest expense) | 14 | |||
Defined benefit plan actuarial gain (loss) - net of tax | Rp (934) | Rp 419 | ||
Discount rate | 8.25% | 8.25% | 6.75% | |
Rate of compensation increases | 8.00% | 8.00% | 8.00% | |
Additional pension benefit obligation | Minimum | ||||
Disclosure of defined benefit plans [line items] | ||||
Rate of return on investment | 9.30 | 9.30 | 9.50 | |
Actuarial discount rate of pension fund | 9.25 | 9.25 | 9.25 | |
Additional pension benefit obligation | Maximum | ||||
Disclosure of defined benefit plans [line items] | ||||
Rate of return on investment | 10 | 10 | 10.25 | |
Actuarial discount rate of pension fund | 9.50 | 9.50 | 9.50 |
PENSION AND OTHER POST-EMPLO_10
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Unfunded Pension (Details) - The company - Unfunded Pension Rp in Billions | 12 Months Ended | |
Dec. 31, 2018IDR (Rp)Y | Dec. 31, 2017IDR (Rp) | |
Disclosure of defined benefit plans [line items] | ||
Employer's contribution | Rp 13 | Rp 10 |
Pre retirement employees inactiveness period | 6 months | |
Retirement age | Y | 56 | |
Pension benefit obligations at beginning of year | Rp 2,384 | 2,507 |
Service costs | 54 | 51 |
Net interest income (costs) | 144 | 188 |
Actuarial gain (losses) recognised in OCI | (137) | 100 |
Benefits paid by employer | (615) | (462) |
Pension benefit obligations at end of year | Rp 1,830 | Rp 2,384 |
PENSION AND OTHER POST-EMPLO_11
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Unfunded Pension - Components of pension benefit cost (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
Disclosure of defined benefit plans [line items] | ||||
Net periodic pension benefit cost | Rp 1,600 | Rp 2,080 | Rp 1,361 | |
Defined benefit plan actuarial gain (loss) - net of tax | $ (335) | (4,820) | 2,375 | 2,058 |
Pension benefit cost | ||||
Disclosure of defined benefit plans [line items] | ||||
Net periodic pension benefit cost | 1,120 | 1,700 | 1,068 | |
The company | Unfunded Pension | ||||
Disclosure of defined benefit plans [line items] | ||||
Service costs | 54 | 51 | 64 | |
Net interest cost | 144 | 188 | 215 | |
Net periodic pension benefit cost | 198 | 239 | 279 | |
Experience adjustments | 27 | 19 | (9) | |
Changes in demographic assumptions | (21) | 30 | ||
Changes in financial assumptions | (143) | 81 | 98 | |
Defined benefit plan actuarial gain (loss) - net of tax | Rp (137) | Rp 100 | Rp 119 | |
The company | Unfunded Pension | Minimum | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 8.00% | 8.00% | 6.00% | 7.75% |
Rate of compensation increases | 6.10% | 6.10% | 6.10% | 6.10% |
The company | Unfunded Pension | Maximum | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 8.25% | 8.25% | 6.75% | 8.00% |
Rate of compensation increases | 8.00% | 8.00% | 8.00% | 8.00% |
PENSION AND OTHER POST-EMPLO_12
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Telkomsel (Details) - Pension benefit cost - Telkomsel - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2004 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Pension benefit obligations at beginning of year | Rp (1,839) | Rp (1,193) | |
Actuarial gain (losses) recognised in OCI | 583 | (584) | |
Return on plan assets (excluding amount included in net interest expense) | 68 | (54) | |
Benefits paid by employer | (125) | (131) | |
Pension benefit obligations at end of year | (1,541) | (1,839) | |
Until 2004 | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Percentage of participating employees contribution | 5.00% | ||
Present value of the defined benefit obligations | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Pension benefit obligations at beginning of year | 2,928 | 2,034 | |
Service costs | 213 | 149 | |
Net interest income (costs) | 203 | 167 | |
Actuarial gain (losses) recognised in OCI | (583) | 584 | |
Benefits paid | (27) | (6) | |
Pension benefit obligations at end of year | 2,734 | 2,928 | |
Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Pension benefit obligations at beginning of year | (1,089) | (841) | |
Net interest income (costs) | 74 | 69 | |
Return on plan assets (excluding amount included in net interest expense) | (68) | 54 | |
Benefits paid by employer | 125 | 131 | |
Benefits paid | 27 | 6 | |
Pension benefit obligations at end of year | Rp (1,193) | Rp (1,089) |
PENSION AND OTHER POST-EMPLO_13
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Telkomsel - Movements of pension benefit obligation (Details) Rp in Billions | Jun. 07, 2017 | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) |
Disclosure of defined benefit plans [line items] | |||
Maximum percentage of surplus defined benefit plan | 10 | ||
Threshold FSR | 105 | ||
Pension benefit cost | Telkomsel | |||
Disclosure of defined benefit plans [line items] | |||
Pension benefit obligations at beginning of year | Rp (1,839) | Rp (1,193) | |
Periodic pension benefit cost | 342 | 247 | |
Actuarial gain (losses) recognised in OCI | (583) | 584 | |
Return on plan assets (excluding amount included in net interest expense) | 68 | (54) | |
Benefits paid by employer | (125) | (131) | |
Pension benefit obligations at end of year | Rp (1,541) | Rp (1,839) |
PENSION AND OTHER POST-EMPLO_14
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Telkomsel - Components (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
Disclosure of defined benefit plans [line items] | ||||
Net periodic pension benefit cost | Rp 1,600 | Rp 2,080 | Rp 1,361 | |
Defined benefit plan actuarial gain (loss) - net of tax | $ (335) | (4,820) | 2,375 | 2,058 |
Pension benefit cost | ||||
Disclosure of defined benefit plans [line items] | ||||
Net periodic pension benefit cost | 1,120 | 1,700 | 1,068 | |
Pension benefit cost | Telkomsel | ||||
Disclosure of defined benefit plans [line items] | ||||
Service costs | 213 | 149 | 107 | |
Net interest cost | 129 | 98 | 74 | |
Net periodic pension benefit cost | 342 | 247 | 181 | |
Experience adjustments | 192 | (77) | 32 | |
Changes in financial assumptions | (774) | 661 | 360 | |
Return on plan assets (excluding amount included in net interest expense) | 68 | (54) | (100) | |
Defined benefit plan actuarial gain (loss) - net of tax | Rp (514) | Rp 530 | Rp 292 | |
Discount rate | 8.25% | 8.25% | 7.00% | 8.25% |
Rate of compensation increases | 8.00% | 8.00% | 8.00% | 8.00% |
PENSION AND OTHER POST-EMPLO_15
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Health Care (Details) - Post-employment health care benefit cost - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension benefit obligations at beginning of year | Rp 2,419 | Rp 1,592 |
Return on plan assets (excluding amount included in net interest expense) | (1,082) | 909 |
Actuarial gain (losses) recognised in OCI | 3,641 | (1,460) |
Pension benefit obligations at end of year | Rp 195 | 2,419 |
Employee hired before November 1, 1995 | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Minimum employee working period for benefits | 20 years | |
Present value of the defined benefit obligations | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension benefit obligations at beginning of year | Rp 15,448 | 13,357 |
Net interest income (costs) | 1,102 | 1,115 |
Actuarial gain (losses) recognised in OCI | (3,641) | 1,460 |
Benefits paid | 486 | 484 |
Pension benefit obligations at end of year | 12,423 | 15,448 |
Plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension benefit obligations at beginning of year | (13,029) | (11,765) |
Net interest income (costs) | (927) | (979) |
Return on plan assets (excluding amount included in net interest expense) | (1,082) | 909 |
Benefits paid | (486) | (484) |
Plan administration costs | (160) | (140) |
Pension benefit obligations at end of year | Rp (12,228) | Rp (13,029) |
PENSION AND OTHER POST-EMPLO_16
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Health Care - Plan Assets (Details) - Post-employment health care benefit cost - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of fair value of plan assets [line items] | ||
Percentage of companies share in total plan assets | 2.03% | 2.04% |
Actual return on plan asset | Rp (315) | Rp 1,748 |
Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 1,115 | 1,354 |
Equity-based mutual fund | 1,204 | 1,113 |
Fixed income instruments | 7,020 | 7,642 |
Total | 11,893 | 12,732 |
Unquoted | ||
Disclosure of fair value of plan assets [line items] | ||
Private placement | 335 | 297 |
Total | 335 | 297 |
Manufacturing and consumer | Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 799 | 835 |
Finance | Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 799 | 840 |
Construction | Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 190 | 254 |
Infrastructure and telecommunication | Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 332 | 350 |
Wholesale | Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 177 | 137 |
Mining | Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 77 | 65 |
Services | Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 60 | 38 |
Agriculture | Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 32 | 35 |
Biotechnology and pharma industry | Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 85 | 68 |
Miscellaneous industries | Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 3 | 1 |
Series B shares | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | Rp 249 | Rp 265 |
PENSION AND OTHER POST-EMPLO_17
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Health Care - Movements of Projected Benefit Obligation (Details) - Post-employment health care benefit cost - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension benefit obligations at beginning of year | Rp 2,419 | Rp 1,592 |
Net periodic post-employment health care benefit costs | 335 | 276 |
Actuarial gain (losses) recognised in OCI | (3,641) | 1,460 |
Return on plan assets (excluding amount included in net interest expense) | 1,082 | (909) |
Pension benefit obligations at end of year | Rp 195 | Rp 2,419 |
PENSION AND OTHER POST-EMPLO_18
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Health Care - Components (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
Disclosure of net defined benefit liability (asset) [line items] | ||||
Net periodic pension benefit cost | Rp 1,600 | Rp 2,080 | Rp 1,361 | |
Defined benefit plan actuarial gain (loss) - net of tax | $ (335) | (4,820) | 2,375 | 2,058 |
Post-employment health care benefit cost | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Service costs | 9 | |||
Plan administration cost | 160 | 140 | 144 | |
Net interest cost | 175 | 136 | 12 | |
Net periodic pension benefit cost | 335 | 276 | 165 | |
Amount charged to subsidiaries under contractual agreements | (2) | |||
Net periodic pension benefit cost | 335 | 276 | 163 | |
Experience adjustments | (1,100) | (1,198) | 26 | |
Changes in demographic assumptions | 66 | |||
Changes in financial assumptions | (2,541) | 2,658 | 1,736 | |
Return on plan assets (excluding amount included in net interest expense) | 1,082 | (909) | (519) | |
Defined benefit plan actuarial gain (loss) - net of tax | Rp (2,559) | Rp 551 | Rp 1,309 |
PENSION AND OTHER POST-EMPLO_19
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Health Care - Actuarial Assumptions (Details) - Post-employment health care benefit cost | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Discount rate | 8.75% | 7.25% | 8.50% |
Health care costs trend rate assumed for next year | 7.00% | 7.00% | 7.00% |
Ultimate health care costs trend rate | 7.00% | 7.00% | 7.00% |
PENSION AND OTHER POST-EMPLO_20
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Other post-employment benefits cost (Details) - Other post-employment benefit cost - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Pension benefit obligations at beginning of year | Rp 510 | Rp 502 |
Service costs | 6 | 6 |
Net interest income (costs) | 26 | 36 |
Actuarial gain (losses) recognised in OCI | (24) | 40 |
Benefits paid by employer | (99) | (74) |
Pension benefit obligations at end of year | Rp 419 | Rp 510 |
PENSION AND OTHER POST-EMPLO_21
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Other post-employment benefits cost - Components (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
Disclosure of defined benefit plans [line items] | ||||
Net periodic pension benefit cost | Rp 1,600 | Rp 2,080 | Rp 1,361 | |
Defined benefit plan actuarial gain (loss) - net of tax | $ (335) | (4,820) | 2,375 | 2,058 |
Other post-employment benefit cost | ||||
Disclosure of defined benefit plans [line items] | ||||
Service costs | 6 | 6 | 7 | |
Net interest cost | 26 | 36 | 41 | |
Net periodic pension benefit cost | 32 | 42 | 48 | |
Experience adjustments | 40 | 10 | 2 | |
Changes in demographic assumptions | (34) | 0 | ||
Changes in financial assumptions | (30) | 30 | 18 | |
Defined benefit plan actuarial gain (loss) - net of tax | Rp (24) | Rp 40 | Rp 20 | |
Discount rate | 8.00% | 8.00% | 5.75% | 7.75% |
PENSION AND OTHER POST-EMPLO_22
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Obligation under the Labor Law (Details) - IDR (Rp) Rp in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [line items] | |||
Post-employment benefit expense, defined benefit plans | Rp 1,600,000 | Rp 2,080,000 | Rp 1,361,000 |
Amount recognised in other comprehensive income before tax adjustment | 5,418,000 | (2,869,000) | (2,266,000) |
Other employee benefit cost | |||
Disclosure of defined benefit plans [line items] | |||
Net defined benefit liability (asset) | 507,000 | 427,000 | |
Post-employment benefit expense, defined benefit plans | 113,000 | 62,000 | 82,000 |
Amount recognised in other comprehensive income before tax adjustment | Rp 14,000 | Rp (72,000) | Rp (33,000) |
PENSION AND OTHER POST-EMPLO_23
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Maturity (Details) Rp in Billions | 12 Months Ended |
Dec. 31, 2018IDR (Rp)Y | |
Post-employment health care benefit cost | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of DBO | Y | 17.41 |
Post-employment health care benefit cost | Within next 10 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 5,620 |
Post-employment health care benefit cost | Within 10-20 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 6,913 |
Post-employment health care benefit cost | Within 20-30 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 6,217 |
Post-employment health care benefit cost | Within 30-40 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 3,193 |
Post-employment health care benefit cost | Within 40-50 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 661 |
Post-employment health care benefit cost | Within 50-60 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 22 |
Post-employment health care benefit cost | Within 60-70 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 0 |
Other post-employment benefit cost | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of DBO | Y | 3.13 |
Other post-employment benefit cost | Within next 10 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 485 |
Other post-employment benefit cost | Within 10-20 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 91 |
Other post-employment benefit cost | Within 20-30 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 39 |
Other post-employment benefit cost | Within 30-40 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 3 |
Pension benefit cost | Telkomsel | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of DBO | Y | 10.58 |
Pension benefit cost | Telkomsel | Within next 10 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 2,498 |
Pension benefit cost | Telkomsel | Within 10-20 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 7,880 |
Pension benefit cost | Telkomsel | Within 20-30 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 6,680 |
Pension benefit cost | Telkomsel | Within 30-40 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 1,580 |
The company | Defined pension benefit obligation | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of DBO | Y | 9.11 |
The company | Defined pension benefit obligation | Within next 10 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 16,370 |
The company | Defined pension benefit obligation | Within 10-20 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 20,349 |
The company | Defined pension benefit obligation | Within 20-30 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 16,207 |
The company | Defined pension benefit obligation | Within 30-40 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 9,400 |
The company | Defined pension benefit obligation | Within 40-50 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 3,383 |
The company | Defined pension benefit obligation | Within 50-60 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 644 |
The company | Defined pension benefit obligation | Within 60-70 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 62 |
The company | Defined pension benefit obligation | Within 70-80 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 2 |
The company | Additional pension benefit obligation | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of DBO | Y | 9.11 |
The company | Additional pension benefit obligation | Within 20-30 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 20 |
The company | Additional pension benefit obligation | Within 30-40 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 38 |
The company | Additional pension benefit obligation | Within 40-50 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 30 |
The company | Additional pension benefit obligation | Within 50-60 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 50 |
The company | Additional pension benefit obligation | Within 60-70 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 101 |
The company | Unfunded Pension | |
Disclosure of defined benefit plans [line items] | |
Weighted average duration of DBO | Y | 3.97 |
The company | Unfunded Pension | Within next 10 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 948 |
The company | Unfunded Pension | Within 10-20 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 160 |
The company | Unfunded Pension | Within 20-30 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 29 |
The company | Unfunded Pension | Within 30-40 years | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | Rp 9 |
PENSION AND OTHER POST-EMPLO_24
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Sensitivity Analysis (Details) Rp in Billions | Dec. 31, 2018IDR (Rp) |
Discount Rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of increase in actuarial assumptions | 1.00% |
Percentage of decrease in actuarial assumptions | 1.00% |
Rate of Compensation | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of increase in actuarial assumptions | 1.00% |
Percentage of decrease in actuarial assumptions | 1.00% |
Post-employment health care benefit cost | Discount Rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Amount of increase in actuarial assumptions | Rp (1,428) |
Amount of decrease in actuarial assumptions | 1,815 |
Post-employment health care benefit cost | Rate of Compensation | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Amount of increase in actuarial assumptions | 1,783 |
Amount of decrease in actuarial assumptions | (1,508) |
Other post-employment benefit cost | Discount Rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Amount of increase in actuarial assumptions | (12) |
Amount of decrease in actuarial assumptions | 13 |
Pension benefit cost | Telkomsel | Discount Rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Amount of increase in actuarial assumptions | (497) |
Amount of decrease in actuarial assumptions | 562 |
Pension benefit cost | Telkomsel | Rate of Compensation | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Amount of increase in actuarial assumptions | 294 |
Amount of decrease in actuarial assumptions | (276) |
Defined pension benefit obligation | Discount Rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Amount of increase in actuarial assumptions | (1,568) |
Amount of decrease in actuarial assumptions | 1,832 |
Defined pension benefit obligation | Rate of Compensation | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Amount of increase in actuarial assumptions | 275 |
Amount of decrease in actuarial assumptions | (286) |
Additional pension benefit obligation | Discount Rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Amount of increase in actuarial assumptions | (2) |
Amount of decrease in actuarial assumptions | 1 |
Unfunded Pension | Discount Rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Amount of increase in actuarial assumptions | (41) |
Amount of decrease in actuarial assumptions | 38 |
Unfunded Pension | Rate of Compensation | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Amount of increase in actuarial assumptions | 42 |
Amount of decrease in actuarial assumptions | Rp (45) |
LSA PROVISIONS (Details)
LSA PROVISIONS (Details) $ in Millions, Rp in Billions | 12 Months Ended | ||||
Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | |
LSA PROVISIONS | |||||
Long service award provisions | Rp 758 | $ 59 | Rp 852 | ||
Long service award expense | Rp 161 | Rp 255 | Rp 237 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - IDR (Rp) Rp in Billions | Jan. 01, 1995 | Dec. 31, 2018 | Dec. 31, 2017 |
Transactions with related parties | |||
Guarantees provided or received for any related party receivables or payables | Rp 0 | ||
Allowance for credit losses of receivables | Rp 486 | ||
Collections made by the Company (as a percent) | 1.00% | ||
Tiphone | |||
Transactions with related parties | |||
Percentage of ownership | 24.00% | 24.00% |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Revenue (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Transactions with related parties | |||
Total | Rp 7,655 | Rp 6,760 | Rp 6,882 |
% of total revenues | 5.84% | 5.27% | 5.94% |
Ministry of Finance | |||
Transactions with related parties | |||
Total | Rp 258 | Rp 280 | Rp 207 |
% of total revenues | 0.20% | 0.22% | 0.18% |
Entities under common control | |||
Transactions with related parties | |||
Total | Rp 7,269 | Rp 5,987 | Rp 6,224 |
% of total revenues | 5.54% | 4.65% | 5.37% |
Government agencies | |||
Transactions with related parties | |||
Total | Rp 3,720 | Rp 2,568 | Rp 2,279 |
% of total revenues | 2.84% | 2.00% | 1.96% |
Indosat | |||
Transactions with related parties | |||
Total | Rp 1,002 | Rp 1,789 | Rp 2,167 |
% of total revenues | 0.77% | 1.39% | 1.86% |
Peruri | |||
Transactions with related parties | |||
Total | Rp 120 | ||
% of total revenues | 0.09% | ||
Angkasa Pura | |||
Transactions with related parties | |||
Total | Rp 114 | ||
% of total revenues | 0.09% | ||
BRI | |||
Transactions with related parties | |||
Total | Rp 397 | Rp 237 | Rp 181 |
% of total revenues | 0.30% | 0.18% | 0.16% |
Bank Mandiri | |||
Transactions with related parties | |||
Total | Rp 173 | Rp 157 | Rp 161 |
% of total revenues | 0.13% | 0.12% | 0.14% |
BTN | |||
Transactions with related parties | |||
Total | Rp 179 | Rp 129 | Rp 107 |
% of total revenues | 0.14% | 0.10% | 0.09% |
Pegadaian | |||
Transactions with related parties | |||
Total | Rp 228 | Rp 115 | Rp 93 |
% of total revenues | 0.17% | 0.09% | 0.08% |
BNI | |||
Transactions with related parties | |||
Total | Rp 188 | Rp 105 | Rp 136 |
% of total revenues | 0.14% | 0.08% | 0.12% |
Pertamina | |||
Transactions with related parties | |||
Total | Rp 183 | Rp 94 | Rp 64 |
% of total revenues | 0.14% | 0.07% | 0.06% |
Garuda | |||
Transactions with related parties | |||
Total | Rp 105 | Rp 55 | Rp 75 |
% of total revenues | 0.08% | 0.04% | 0.06% |
KAI | |||
Transactions with related parties | |||
Total | Rp 83 | Rp 18 | Rp 68 |
% of total revenues | 0.06% | 0.01% | 0.06% |
Balai Pustaka | |||
Transactions with related parties | |||
Total | Rp 81 | ||
% of total revenues | 0.06% | ||
Others | |||
Transactions with related parties | |||
Total | Rp 696 | Rp 720 | Rp 893 |
% of total revenues | 0.53% | 0.57% | 0.78% |
Associated companies | |||
Transactions with related parties | |||
Total | Rp 55 | Rp 178 | Rp 198 |
% of total revenues | 0.04% | 0.15% | 0.17% |
Other related entities | |||
Transactions with related parties | |||
Total | Rp 73 | Rp 315 | Rp 253 |
% of total revenues | 0.06% | 0.25% | 0.22% |
RELATED PARTY TRANSACTIONS - Ex
RELATED PARTY TRANSACTIONS - Expenses (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Transactions with related parties | |||
Total | Rp 16,766 | Rp 12,964 | Rp 11,657 |
% of total expenses | 17.95% | 15.43% | 15.45% |
Ministry of Finance | |||
Transactions with related parties | |||
Total | Rp 12 | ||
% of total expenses | 0.01% | ||
Entities under common control | |||
Transactions with related parties | |||
Total | Rp 12,498 | Rp 9,974 | Rp 8,282 |
% of total expenses | 13.38% | 11.87% | 10.98% |
MoCI | |||
Transactions with related parties | |||
Total | Rp 8,109 | Rp 6,533 | Rp 5,911 |
% of total expenses | 8.68% | 7.77% | 7.84% |
PLN | |||
Transactions with related parties | |||
Total | Rp 2,596 | Rp 2,269 | Rp 1,037 |
% of total expenses | 2.78% | 2.70% | 1.38% |
Indosat | |||
Transactions with related parties | |||
Total | Rp 933 | Rp 890 | Rp 939 |
% of total expenses | 1.00% | 1.06% | 1.25% |
Jasindo | |||
Transactions with related parties | |||
Total | Rp 349 | Rp 168 | Rp 267 |
% of total expenses | 0.37% | 0.20% | 0.35% |
Others | |||
Transactions with related parties | |||
Total | Rp 511 | Rp 114 | Rp 128 |
% of total expenses | 0.55% | 0.14% | 0.16% |
Associated companies | |||
Transactions with related parties | |||
Total | Rp 498 | Rp 421 | Rp 232 |
% of total expenses | 0.53% | 0.50% | 0.30% |
Indonusa | |||
Transactions with related parties | |||
Total | Rp 306 | Rp 264 | Rp 145 |
% of total expenses | 0.33% | 0.31% | 0.19% |
Teltranet | |||
Transactions with related parties | |||
Total | Rp 181 | Rp 123 | Rp 49 |
% of total expenses | 0.19% | 0.15% | 0.06% |
Others | |||
Transactions with related parties | |||
Total | Rp 11 | Rp 34 | Rp 38 |
% of total expenses | 0.01% | 0.04% | 0.05% |
Other related entities | |||
Transactions with related parties | |||
Total | Rp 3,770 | Rp 2,557 | Rp 3,143 |
% of total expenses | 4.04% | 3.05% | 4.17% |
Kisel | |||
Transactions with related parties | |||
Total | Rp 916 | Rp 813 | Rp 771 |
% of total expenses | 0.98% | 0.97% | 1.02% |
Kopegtel | |||
Transactions with related parties | |||
Total | Rp 836 | Rp 713 | Rp 533 |
% of total expenses | 0.90% | 0.85% | 0.71% |
POIN | |||
Transactions with related parties | |||
Total | Rp 850 | Rp 405 | Rp 1,459 |
% of total expenses | 0.91% | 0.48% | 1.94% |
PMM | |||
Transactions with related parties | |||
Total | Rp 850 | Rp 404 | |
% of total expenses | 0.91% | 0.48% | |
Yakes | |||
Transactions with related parties | |||
Total | Rp 128 | Rp 139 | Rp 192 |
% of total expenses | 0.14% | 0.17% | 0.25% |
Others | |||
Transactions with related parties | |||
Total | Rp 190 | Rp 83 | Rp 188 |
% of total expenses | 0.20% | 0.10% | 0.25% |
RELATED PARTY TRANSACTIONS - Fi
RELATED PARTY TRANSACTIONS - Finance Income (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Ministry of Finance | |||
Transactions with related parties | |||
Total | Rp 0 | Rp 2 | |
% of total finance income | 0.00% | 0.12% | |
Entities under common control | |||
Transactions with related parties | |||
Total | Rp 614 | Rp 932 | Rp 936 |
% of total finance income | 60.55% | 64.99% | 54.55% |
State-owned banks | |||
Transactions with related parties | |||
Total | Rp 596 | Rp 863 | Rp 895 |
% of total finance income | 58.78% | 60.18% | 52.16% |
Government agencies | |||
Transactions with related parties | |||
Total | Rp 12 | Rp 34 | Rp 34 |
% of total finance income | 1.18% | 2.37% | 1.98% |
Others | |||
Transactions with related parties | |||
Total | Rp 6 | Rp 35 | Rp 5 |
% of total finance income | 0.59% | 2.44% | 0.29% |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Finance costs (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Transactions with related parties | |||
Total | Rp 1,291 | Rp 968 | Rp 1,292 |
% of total finance costs | 36.64% | 34.95% | 45.98% |
Ministry of Finance | |||
Transactions with related parties | |||
Total | Rp 41 | Rp 54 | Rp 64 |
% of total finance costs | 1.16% | 1.95% | 2.28% |
State-owned banks | |||
Transactions with related parties | |||
Total | Rp 1,140 | Rp 820 | Rp 1,228 |
% of total finance costs | 32.36% | 29.61% | 43.70% |
SMI | |||
Transactions with related parties | |||
Total | Rp 110 | Rp 94 | |
% of total finance costs | 3.12% | 3.39% |
RELATED PARTY TRANSACTIONS - Di
RELATED PARTY TRANSACTIONS - Distribution of Sim Card and Pulse Reload Voucher (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other related entities | |||
Transactions with related parties | |||
Total | Rp 9,085 | Rp 8,477 | Rp 8,449 |
% of total revenues | 6.95% | 6.61% | 7.26% |
Kisel | |||
Transactions with related parties | |||
Total | Rp 4,221 | Rp 4,181 | Rp 4,600 |
% of total revenues | 3.23% | 3.26% | 3.95% |
Tiphone | |||
Transactions with related parties | |||
Total | Rp 4,390 | Rp 3,888 | Rp 3,441 |
% of total revenues | 3.36% | 3.03% | 2.96% |
Gratika | |||
Transactions with related parties | |||
Total | Rp 474 | Rp 408 | Rp 408 |
% of total revenues | 0.36% | 0.32% | 0.35% |
RELATED PARTY TRANSACTIONS - Pu
RELATED PARTY TRANSACTIONS - Purchase of Property and Equipment (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Transactions with related parties | ||
Total | Rp 679 | Rp 683 |
% of total property and equipment purchased | 2.02% | 2.05% |
Entities under common control | ||
Transactions with related parties | ||
Total | Rp 207 | Rp 301 |
% of total property and equipment purchased | 0.62% | 0.90% |
INTI | ||
Transactions with related parties | ||
Total | Rp 137 | Rp 203 |
% of total property and equipment purchased | 0.41% | 0.61% |
Others | ||
Transactions with related parties | ||
Total | Rp 70 | Rp 98 |
% of total property and equipment purchased | 0.21% | 0.29% |
Other related entities | ||
Transactions with related parties | ||
Total | Rp 472 | Rp 382 |
% of total property and equipment purchased | 1.40% | 1.15% |
Kopegtel | ||
Transactions with related parties | ||
Total | Rp 144 | Rp 130 |
% of total property and equipment purchased | 0.43% | 0.39% |
Bangtelindo | ||
Transactions with related parties | ||
Total | Rp 135 | Rp 64 |
% of total property and equipment purchased | 0.40% | 0.19% |
Others | ||
Transactions with related parties | ||
Total | Rp 193 | Rp 188 |
% of total property and equipment purchased | 0.57% | 0.57% |
RELATED PARTY TRANSACTIONS - As
RELATED PARTY TRANSACTIONS - Assets with Related Parties (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Transactions with related parties | ||
Cash and cash equivalents (Note 4) | Rp 14,544 | Rp 19,236 |
% of cash and cash equivalents on total assets | 7.06% | 9.71% |
Other current financial assets (Note 5) | Rp 471 | Rp 1,170 |
% of other current financial assets on total assets | 0.23% | 0.59% |
Trade receivables - net (Note 6) | Rp 2,014 | Rp 1,864 |
Percentage of trade receivables on total assets | 0.98% | 0.94% |
Other current assets | Rp 3,641 | Rp 3,613 |
% of other current assets on total assets | 1.77% | 1.82% |
Other non-current assets | Rp 1,789 | Rp 2,077 |
% of other non-current assets on total assets | 0.87% | 1.05% |
Entities under common control | ||
Transactions with related parties | ||
Other current assets | Rp 3,563 | Rp 3,545 |
% of other current assets on total assets | 1.73% | 1.79% |
Other non-current assets | Rp 1,771 | Rp 2,052 |
% of other non-current assets on total assets | 0.86% | 1.04% |
MoCI | ||
Transactions with related parties | ||
Other current assets | Rp 3,478 | Rp 3,485 |
% of other current assets on total assets | 1.69% | 1.76% |
Other non-current assets | Rp 1,743 | Rp 2,019 |
% of other non-current assets on total assets | 0.85% | 1.02% |
Others | ||
Transactions with related parties | ||
Other current assets | Rp 85 | Rp 60 |
% of other current assets on total assets | 0.04% | 0.03% |
Other non-current assets | Rp 28 | Rp 33 |
% of other non-current assets on total assets | 0.01% | 0.02% |
Other related entities | ||
Transactions with related parties | ||
Other current assets | Rp 78 | Rp 68 |
% of other current assets on total assets | 0.04% | 0.03% |
Other non-current assets | Rp 18 | Rp 25 |
% of other non-current assets on total assets | 0.01% | 0.01% |
RELATED PARTY TRANSACTIONS - Tr
RELATED PARTY TRANSACTIONS - Trade Payables (Details) - IDR (Rp) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Transactions with related parties | ||
Trade payables (Note 15) | Rp 2,489,000,000,000 | Rp 2,460,000,000,000 |
Total trade payables | 2,489,000,000,000 | 2,460,000,000,000 |
% of total liabilities | 2.79 | 2.83 |
Ministry of Finance | ||
Transactions with related parties | ||
Trade payables (Note 15) | 2,000,000,000 | 29,000,000,000 |
% of total liabilities | 0 | 0.03 |
Entities under common control | ||
Transactions with related parties | ||
Trade payables (Note 15) | 1,912,000,000,000 | 1,894,000,000,000 |
% of total liabilities | 2.15 | 2.19 |
MoCI | ||
Transactions with related parties | ||
Trade payables (Note 15) | 1,477,000,000,000 | 1,561,000,000,000 |
% of total liabilities | 1.66 | 1.81 |
Indosat | ||
Transactions with related parties | ||
Trade payables (Note 15) | 122,000,000,000 | 225,000,000,000 |
% of total liabilities | 0.14 | 0.26 |
Others | ||
Transactions with related parties | ||
Trade payables (Note 15) | 313,000,000,000 | 108,000,000,000 |
% of total liabilities | 0.35 | 0.12 |
Other related entities | ||
Transactions with related parties | ||
Trade payables (Note 15) | 538,000,000,000 | 490,000,000,000 |
% of total liabilities | 0.60 | 0.56 |
Kopegtel | ||
Transactions with related parties | ||
Trade payables (Note 15) | 279,000,000,000 | 206,000,000,000 |
% of total liabilities | 0.31 | 0.24 |
Others | ||
Transactions with related parties | ||
Trade payables (Note 15) | 259,000,000,000 | 284,000,000,000 |
% of total liabilities | 0.29 | 0.32 |
Associated companies | ||
Transactions with related parties | ||
Trade payables (Note 15) | 37,000,000,000 | 47,000,000,000 |
% of total liabilities | Rp 0.04 | Rp 0.05 |
RELATED PARTY TRANSACTIONS - Li
RELATED PARTY TRANSACTIONS - Liabilities with Related Parties (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Transactions with related parties | ||
Accrued expenses | Rp 350 | Rp 395 |
% of accrued expenses on total liabilities | 0.40% | 0.46% |
Advances from customers | Rp 31 | Rp 30 |
% of advances from customers on total liabilities | 0.03% | 0.03% |
Short-term bank loans - (Note 18) | Rp 956 | Rp 1,297 |
Percentage of short-term bank loans on total liabilities | 1.08% | 1.50% |
Two-step loans (Note 19a) | Rp 949 | Rp 1,098 |
Percentage of two-step loans on total liabilities | 1.07% | 1.27% |
Long-term bank loans - (Note 19c) | Rp 12,620 | Rp 7,895 |
Percentage of long-term bank loans on total liabilities | 14.20% | 9.14% |
Other borrowings (Note 19d) | Rp 2,244 | Rp 1,295 |
Percentage of other borrowings on total liabilities | 2.52% | 1.50% |
Ministry of Finance | ||
Transactions with related parties | ||
Accrued expenses | Rp 7 | Rp 9 |
% of accrued expenses on total liabilities | 0.01% | 0.01% |
Advances from customers | Rp 19 | Rp 19 |
% of advances from customers on total liabilities | 0.02% | 0.02% |
Entities under common control | ||
Transactions with related parties | ||
Accrued expenses | Rp 147 | Rp 151 |
% of accrued expenses on total liabilities | 0.17% | 0.18% |
PLN | ||
Transactions with related parties | ||
Advances from customers | Rp 12 | Rp 11 |
% of advances from customers on total liabilities | 0.01% | 0.01% |
Kisel | ||
Transactions with related parties | ||
Accrued expenses | Rp 183 | Rp 235 |
% of accrued expenses on total liabilities | 0.21% | 0.27% |
Others | ||
Transactions with related parties | ||
Accrued expenses | Rp 13 | |
% of accrued expenses on total liabilities | 0.01% | |
State-owned banks | ||
Transactions with related parties | ||
Accrued expenses | Rp 61 | Rp 22 |
% of accrued expenses on total liabilities | 0.07% | 0.03% |
Others | ||
Transactions with related parties | ||
Accrued expenses | Rp 86 | Rp 129 |
% of accrued expenses on total liabilities | 0.10% | 0.15% |
Other related entities | ||
Transactions with related parties | ||
Accrued expenses | Rp 196 | Rp 235 |
% of accrued expenses on total liabilities | 0.22% | 0.27% |
RELATED PARTY TRANSACTIONS - _3
RELATED PARTY TRANSACTIONS - Remuneration (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Directors | |||
Transactions with related parties | |||
Remuneration | Rp 360 | Rp 175 | Rp 427 |
% of total expenses | 0.39% | 0.21% | 0.57% |
Board of Commissioners | |||
Transactions with related parties | |||
Remuneration | Rp 166 | Rp 65 | Rp 121 |
% of total expenses | 0.18% | 0.08% | 0.16% |
OPERATING SEGMENT (Details)
OPERATING SEGMENT (Details) $ in Millions, Rp in Billions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($)segment | Dec. 31, 2018IDR (Rp)segment | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
Segment results | |||||
Number of operating segments | segment | 4 | 4 | |||
External revenues | Rp 130,788 | Rp 128,256 | Rp 116,333 | ||
Total revenues | Rp 130,788 | $ 9,095 | 130,788 | 128,256 | 116,333 |
External expenses | (92,255) | (84,354) | (77,161) | ||
Total segment expenses | (92,255) | (84,354) | (77,161) | ||
OPERATING PROFIT | $ 2,680 | 38,533 | 43,902 | 39,172 | |
Capital expenditures | (33,620) | (33,154) | (29,199) | ||
Depreciation and amortization | (21,442) | (20,477) | (18,556) | ||
Provision recognised in current period | (2,079) | (1,494) | (743) | ||
Operating Segments | |||||
Segment results | |||||
External revenues | 130,497 | 127,873 | 116,109 | ||
Inter-segment revenue | 41,729 | 36,081 | 32,138 | ||
Total revenues | 172,226 | 163,954 | 148,247 | ||
External expenses | (89,163) | (83,751) | (77,519) | ||
Inter-segment expenses | (41,357) | (36,679) | (29,804) | ||
Total segment expenses | (130,520) | (120,430) | (107,323) | ||
OPERATING PROFIT | 41,706 | 43,524 | 40,924 | ||
Capital expenditures | (32,995) | (32,446) | (28,419) | ||
Depreciation and amortization | (21,450) | (20,939) | (18,809) | ||
Provision recognised in current period | (1,716) | (1,473) | (733) | ||
Adjustments and Eliminations | |||||
Segment results | |||||
External revenues | 291 | 383 | 224 | ||
Inter-segment revenue | (41,729) | (36,081) | (32,138) | ||
Total revenues | (41,438) | (35,698) | (31,914) | ||
External expenses | (3,092) | (603) | 358 | ||
Inter-segment expenses | 41,357 | 36,679 | 29,804 | ||
Total segment expenses | 38,265 | 36,076 | 30,162 | ||
OPERATING PROFIT | (3,173) | 378 | (1,752) | ||
Capital expenditures | (625) | (708) | (780) | ||
Depreciation and amortization | 8 | 462 | 253 | ||
Provision recognised in current period | (363) | (21) | (10) | ||
Mobile | Operating Segments | |||||
Segment results | |||||
External revenues | 85,338 | 90,073 | 83,998 | ||
Inter-segment revenue | 3,880 | 3,086 | 2,724 | ||
Total revenues | 89,218 | 93,159 | 86,722 | ||
External expenses | (40,041) | (39,452) | (37,814) | ||
Inter-segment expenses | (15,408) | (14,382) | (12,547) | ||
Total segment expenses | (55,449) | (53,834) | (50,361) | ||
OPERATING PROFIT | 33,769 | 39,325 | 36,361 | ||
Capital expenditures | (14,373) | (15,134) | (12,568) | ||
Depreciation and amortization | (13,095) | (13,560) | (12,808) | ||
Provision recognised in current period | (438) | (291) | (221) | ||
Consumer | Operating Segments | |||||
Segment results | |||||
External revenues | 13,891 | 11,105 | 10,410 | ||
Inter-segment revenue | 2,290 | 287 | 1,877 | ||
Total revenues | 16,181 | 11,392 | 12,287 | ||
External expenses | (11,739) | (10,360) | (11,024) | ||
Inter-segment expenses | (3,792) | (1,563) | (2,793) | ||
Total segment expenses | (15,531) | (11,923) | (13,817) | ||
OPERATING PROFIT | 650 | (531) | (1,530) | ||
Capital expenditures | (6,958) | (6,544) | (7,085) | ||
Depreciation and amortization | (3,060) | (2,839) | (2,881) | ||
Provision recognised in current period | (438) | (385) | (392) | ||
Enterprise | Operating Segments | |||||
Segment results | |||||
External revenues | 21,054 | 19,130 | 15,816 | ||
Inter-segment revenue | 17,995 | 16,801 | 12,877 | ||
Total revenues | 39,049 | 35,931 | 28,693 | ||
External expenses | (21,717) | (20,627) | (17,813) | ||
Inter-segment expenses | (16,116) | (15,053) | (9,647) | ||
Total segment expenses | (37,833) | (35,680) | (27,460) | ||
OPERATING PROFIT | 1,216 | 251 | 1,233 | ||
Capital expenditures | (5,325) | (3,637) | (3,036) | ||
Depreciation and amortization | (2,128) | (2,136) | (1,386) | ||
Provision recognised in current period | (764) | (668) | 119 | ||
WIB | Operating Segments | |||||
Segment results | |||||
External revenues | 10,084 | 7,439 | 5,866 | ||
Inter-segment revenue | 16,678 | 15,305 | 14,451 | ||
Total revenues | 26,762 | 22,744 | 20,317 | ||
External expenses | (14,624) | (12,333) | (10,451) | ||
Inter-segment expenses | (6,010) | (5,611) | (4,805) | ||
Total segment expenses | (20,634) | (17,944) | (15,256) | ||
OPERATING PROFIT | 6,128 | 4,800 | 5,061 | ||
Capital expenditures | (6,321) | (7,120) | (5,729) | ||
Depreciation and amortization | (3,146) | (2,382) | (1,715) | ||
Provision recognised in current period | (71) | (127) | (238) | ||
Others | |||||
Segment results | |||||
External revenues | 130 | 126 | 19 | ||
Total revenues | 428 | 509 | 243 | ||
Others | Operating Segments | |||||
Segment results | |||||
External revenues | 130 | 126 | 19 | ||
Inter-segment revenue | 886 | 602 | 209 | ||
Total revenues | 1,016 | 728 | 228 | ||
External expenses | (1,042) | (979) | (417) | ||
Inter-segment expenses | (31) | (70) | (12) | ||
Total segment expenses | (1,073) | (1,049) | (429) | ||
OPERATING PROFIT | (57) | (321) | (201) | ||
Capital expenditures | (18) | (11) | (1) | ||
Depreciation and amortization | (21) | (22) | (19) | ||
Provision recognised in current period | (5) | (2) | (1) | ||
Others | Adjustments and Eliminations | |||||
Segment results | |||||
External revenues | Rp (298) | Rp (383) | Rp (224) |
OPERATING SEGMENT - Reconciliat
OPERATING SEGMENT - Reconciliation (Details) $ in Millions, Rp in Billions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | |
Segment results | ||||
Segment results | $ 2,680 | Rp 38,533 | Rp 43,902 | Rp 39,172 |
Operating Segments | ||||
Segment results | ||||
Segment results | 41,706 | 43,524 | 40,924 | |
Adjustments and Eliminations | ||||
Segment results | ||||
Segment results | (3,173) | 378 | (1,752) | |
Operating loss of operating business | (798) | (786) | (339) | |
Other eliminations and adjustments | (2,063) | 1,195 | (1,390) | |
IFRS reconciliation | Rp (312) | Rp (31) | Rp (23) |
OPERATING SEGMENT - Geographic
OPERATING SEGMENT - Geographic Information (Details) $ in Millions, Rp in Billions | Dec. 31, 2018IDR (Rp) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) |
Geographic information: | |||||
Revenue | Rp 130,788 | $ 9,095 | Rp 130,788 | Rp 128,256 | Rp 116,333 |
Non-current operating assets | 147,944 | 147,944 | 133,402 | 117,319 | |
Indonesia | |||||
Geographic information: | |||||
Revenue | 127,442 | 125,970 | 114,086 | ||
Non-current operating assets | 144,296 | 144,296 | 130,169 | 114,948 | |
Foreign countries | |||||
Geographic information: | |||||
Revenue | 3,346 | 2,286 | 2,247 | ||
Non-current operating assets | Rp 3,648 | Rp 3,648 | Rp 3,233 | Rp 2,371 |
SIGNIFICANT COMMITMENTS AND A_3
SIGNIFICANT COMMITMENTS AND AGREEMENTS - Capital expenditures (Details) - Dec. 31, 2018 € in Thousands, $ in Thousands, $ in Millions, Rp in Billions | EUR (€) | HKD ($) | USD ($) | IDR (Rp) |
Capital expenditures | ||||
Capital expenditures | Rp 9,358 | |||
Rupiah | ||||
Capital expenditures | ||||
Capital expenditures | 7,988 | |||
USD | ||||
Capital expenditures | ||||
Capital expenditures | $ 94 | 1,349 | ||
Euro | ||||
Capital expenditures | ||||
Capital expenditures | € 1,230 | 20 | ||
HKD | ||||
Capital expenditures | ||||
Capital expenditures | $ 790 | Rp 1 |
SIGNIFICANT COMMITMENTS AND A_4
SIGNIFICANT COMMITMENTS AND AGREEMENTS - Borrowings and other credit facilities (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017USD ($) | Dec. 31, 2017IDR (Rp) |
Borrowings and other credit facilities | ||||
Total facility | Rp 1,850 | |||
Facility utilized | 902 | |||
BRI | ||||
Borrowings and other credit facilities | ||||
Total facility | 500 | |||
Facility utilized | 280 | |||
BRI | Payment guarantee | Telkomsel | ||||
Borrowings and other credit facilities | ||||
Facility utilized | 499 | |||
BRI | Performance guarantee | Telkomsel | ||||
Borrowings and other credit facilities | ||||
Facility utilized | 20 | |||
BNI | ||||
Borrowings and other credit facilities | ||||
Total facility | 850 | |||
Facility utilized | 261 | |||
BNI | Surety bond | Telkomsel | ||||
Borrowings and other credit facilities | ||||
Facility utilized | 1,030,000 | |||
Bank Mandiri | ||||
Borrowings and other credit facilities | ||||
Total facility | 500 | |||
Facility utilized | 361 | |||
Financial guarantee | BRI | Telkomsel | ||||
Borrowings and other credit facilities | ||||
Total facility | 1,000 | |||
Financial guarantee | BNI | Telkomsel | ||||
Borrowings and other credit facilities | ||||
Total facility | 2,100,000 | |||
Facility utilized | 52.2 | |||
Financial guarantee | BNI | Sigma | ||||
Borrowings and other credit facilities | ||||
Total facility | 354 | |||
Facility utilized | 156 | |||
Financial guarantee | Bank Mandiri | TII | ||||
Borrowings and other credit facilities | ||||
Total facility | $ 10 | 135 | $ 15 | Rp 202 |
Financial guarantee | SCB | Telkomsel | ||||
Borrowings and other credit facilities | ||||
Total facility | $ | $ 3 | |||
Financial guarantee | PT Bank Central Asia Tbk ("BCA") | Telkomsel | ||||
Borrowings and other credit facilities | ||||
Total facility | Rp 150 |
SIGNIFICANT COMMITMENTS AND A_5
SIGNIFICANT COMMITMENTS AND AGREEMENTS - Radio Frequency Usage (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Significant Commitments and Agreements [Line Items] | |||
Radio frequency usage charges | Rp 5,473 | Rp 4,276 | Rp 3,687 |
Telkomsel | |||
Disclosure of Significant Commitments and Agreements [Line Items] | |||
Period for radio frequency usage | 10 years | ||
Amount of performance bond | Rp 20 | ||
Amount of surety bond | Rp 1,030 |
SIGNIFICANT COMMITMENTS AND A_6
SIGNIFICANT COMMITMENTS AND AGREEMENTS - Operating lease commitments (Details) Rp in Billions | 12 Months Ended |
Dec. 31, 2018IDR (Rp) | |
Operating lease commitments | |
Minimum lease payments | Rp 4,038 |
Future minimum lease payments | 23,832 |
Future minimum lease receivables | Rp 4,105 |
Minimum | |
Operating lease commitments | |
Term | 1 year |
Maximum | |
Operating lease commitments | |
Term | 10 years |
Less than one year | |
Operating lease commitments | |
Future minimum lease payments | Rp 6,271 |
Future minimum lease receivables | 1,084 |
1-5 years | |
Operating lease commitments | |
Future minimum lease payments | 13,030 |
Future minimum lease receivables | 2,464 |
Thereafter | |
Operating lease commitments | |
Future minimum lease payments | 4,531 |
Future minimum lease receivables | Rp 557 |
SIGNIFICANT COMMITMENTS AND A_7
SIGNIFICANT COMMITMENTS AND AGREEMENTS - Schedule of service concession arrangement (Details) - IDR (Rp) Rp in Billions | Jun. 22, 2017 | Sep. 26, 2016 | Dec. 31, 2017 | Dec. 27, 2011 |
Service concession arrangement | ||||
Percentage of gross revenue to be contributed for united service organization development | 1.25% | |||
Trade Receivable for United Service Organization Program | Rp 115 | |||
Telkomsel | ||||
Service concession arrangement | ||||
Compensation receivable | Rp 217 | |||
Compensation received | Rp 83 | |||
All packages 1 to 13 service concession arrangement | Telkomsel | ||||
Service concession arrangement | ||||
Service concession arrangements amount | Rp 830 | |||
Desa pinter service concession arrangement | Telkomsel | ||||
Service concession arrangement | ||||
Service concession arrangements amount | Rp 261 |
FINANCIAL RISK MANAGEMENT - Fin
FINANCIAL RISK MANAGEMENT - Financial assets (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | Rp 31,602 | Rp 37,438 |
Loans and receivables | Cash and cash equivalents | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 25,145 | |
Loans and receivables | Trade and other receivables, net | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 9,564 | |
Loans and receivables | Other current financial asset | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 1,005 | |
Loans and receivables | Other non-current assets | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 183 | |
Available-for-sale financial assets | Available-for-sale investments | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | Rp 1,541 | |
Amortized cost | Cash and cash equivalents | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 17,435 | |
Amortized cost | Trade and other receivables, net | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 9,928 | |
Amortized cost | Contract assets, net | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 1,560 | |
Amortized cost | Other current financial asset | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 844 | |
Amortized cost | Other non-current assets | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 443 | |
FVTPL | Subsidiaries' investments | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 709 | |
FVTPL | Mutual funds | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | 470 | |
FVTPL | Convertible bonds | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial assets | Rp 213 |
FINANCIAL RISK MANAGEMENT - F_2
FINANCIAL RISK MANAGEMENT - Financial liabilities (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT | ||
Total financial liabilities | Rp 72,326 | Rp 64,189 |
Financial liabilities measured at amortized cost | Trade and other payables | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial liabilities | 15,214 | 15,791 |
Financial liabilities measured at amortized cost | Accrued expenses | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial liabilities | 12,769 | 12,630 |
Financial liabilities measured at amortized cost | Short-term bank loans | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial liabilities | 4,043 | 2,289 |
Financial liabilities measured at amortized cost | Two-step loans | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial liabilities | 949 | 1,098 |
Financial liabilities measured at amortized cost | Bonds and notes | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial liabilities | 10,481 | 8,982 |
Financial liabilities measured at amortized cost | Long-term bank loans | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial liabilities | 23,220 | 18,004 |
Financial liabilities measured at amortized cost | Obligations under finance leases | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial liabilities | 3,145 | 3,804 |
Financial liabilities measured at amortized cost | Other borrowings | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial liabilities | 2,244 | 1,295 |
Financial liabilities measured at amortized cost | Other liabilities | ||
FINANCIAL RISK MANAGEMENT | ||
Total financial liabilities | Rp 261 | Rp 296 |
FINANCIAL RISK MANAGEMENT - Fai
FINANCIAL RISK MANAGEMENT - Fair values (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
FINANCIAL RISK MANAGEMENT | ||
Financial assets | Rp 31,602 | Rp 37,438 |
Financial liabilities | 72,326 | 64,189 |
Financial liabilities, fair value | 41,540 | 36,294 |
Transfer from level 1 to level 2, Assets | 0 | |
Transfer from level 2 to level 1, Assets | 0 | |
Transfer from level 1 to level 2, Liabilities | 0 | |
Transfer from level 2 to level 1, Liabilities | 0 | |
Transfer from level 3, Assets | 0 | |
Transfer to level 3, Assets | 0 | |
Transfer from level 3, Liabilities | 0 | |
Transfer to level 3, Liabilities | 0 | |
Level 1 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 9,850 | 11,202 |
Level 2 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 17 | |
Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 31,690 | 25,075 |
Gain or loss recognised in comprehensive income | 52 | |
Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 41,692 | 35,020 |
Two-step loans | Financial liabilities measured at amortized cost | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 949 | 1,098 |
Financial liabilities, fair value | 898 | 1,111 |
Two-step loans | Financial liabilities measured at amortized cost | Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 898 | 1,111 |
Two-step loans | Financial liabilities measured at amortized cost | Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 949 | 1,098 |
Bonds and notes | Financial liabilities measured at amortized cost | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 10,481 | 8,982 |
Financial liabilities, fair value | 10,894 | 10,051 |
Bonds and notes | Financial liabilities measured at amortized cost | Level 1 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 9,380 | 10,051 |
Bonds and notes | Financial liabilities measured at amortized cost | Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 1,514 | |
Bonds and notes | Financial liabilities measured at amortized cost | Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 10,481 | 8,982 |
Long-term bank loans | Financial liabilities measured at amortized cost | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 23,220 | 18,004 |
Financial liabilities, fair value | 22,796 | 18,126 |
Long-term bank loans | Financial liabilities measured at amortized cost | Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 22,796 | 18,126 |
Long-term bank loans | Financial liabilities measured at amortized cost | Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 23,220 | 18,004 |
Obligations under finance leases | Financial liabilities measured at amortized cost | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 3,145 | 3,804 |
Financial liabilities, fair value | 3,145 | 3,804 |
Obligations under finance leases | Financial liabilities measured at amortized cost | Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 3,145 | 3,804 |
Obligations under finance leases | Financial liabilities measured at amortized cost | Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 3,145 | 3,804 |
Other borrowings | Financial liabilities measured at amortized cost | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 2,244 | 1,295 |
Financial liabilities, fair value | 2,154 | 1,365 |
Other borrowings | Financial liabilities measured at amortized cost | Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 2,154 | 1,365 |
Other borrowings | Financial liabilities measured at amortized cost | Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 2,244 | 1,295 |
Other liabilities | Financial liabilities measured at amortized cost | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | 261 | 296 |
Financial liabilities, fair value | 261 | 296 |
Other liabilities | Financial liabilities measured at amortized cost | Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 261 | 296 |
Other liabilities | Financial liabilities measured at amortized cost | Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities, fair value | 261 | 296 |
Available-for-sale investments | Available-for-sale financial assets | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, fair value | 1,541 | |
Available-for-sale investments | Available-for-sale financial assets | Level 1 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, fair value | 1,151 | |
Available-for-sale investments | Available-for-sale financial assets | Level 2 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, fair value | 17 | |
Available-for-sale investments | Available-for-sale financial assets | Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, fair value | 373 | |
Available-for-sale investments | Available-for-sale financial assets | Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | Rp 1,541 | |
Mutual funds | FVTPL | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 470 | |
Mutual funds | FVTPL | Level 1 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 470 | |
Mutual funds | FVTPL | Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 470 | |
Convertible bonds | FVTPL | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 213 | |
Convertible bonds | FVTPL | Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 213 | |
Convertible bonds | FVTPL | Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 213 | |
Subsidiaries' investments | FVTPL | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | 709 | |
Financial assets, fair value | 709 | |
Subsidiaries' investments | FVTPL | Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, fair value | 709 | |
Subsidiaries' investments | FVTPL | Carrying value | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets | Rp 709 |
FINANCIAL RISK MANAGEMENT - Sig
FINANCIAL RISK MANAGEMENT - Significant customer (Details) - Foreign exchange risk ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018JPY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017USD ($) | |
FINANCIAL RISK MANAGEMENT | ||||
Foreign currency liabilities offset by time deposits and receivables (as a percent) | 25.00% | |||
USD | ||||
FINANCIAL RISK MANAGEMENT | ||||
Net exposure | $ | $ 82 | $ (43) | ||
Yen | ||||
FINANCIAL RISK MANAGEMENT | ||||
Net exposure | ¥ | ¥ (4,648) | ¥ (5,406) | ||
Minimum | ||||
FINANCIAL RISK MANAGEMENT | ||||
Duration of time deposits and hedging instruments | 3 months | |||
Maximum | ||||
FINANCIAL RISK MANAGEMENT | ||||
Duration of time deposits and hedging instruments | 12 months | |||
Financial asset | USD | ||||
FINANCIAL RISK MANAGEMENT | ||||
Net exposure | $ | 473 | 261 | ||
Financial asset | Yen | ||||
FINANCIAL RISK MANAGEMENT | ||||
Net exposure | ¥ | ¥ 8 | 7 | ||
Financial liability | USD | ||||
FINANCIAL RISK MANAGEMENT | ||||
Net exposure | $ | $ (391) | $ (304) | ||
Financial liability | Yen | ||||
FINANCIAL RISK MANAGEMENT | ||||
Net exposure | ¥ | ¥ (4,656) | ¥ (5,413) |
FINANCIAL RISK MANAGEMENT - Sen
FINANCIAL RISK MANAGEMENT - Sensitivity analysis (Details) - Foreign exchange risk Rp in Billions | Dec. 31, 2018IDR (Rp) |
USD | |
FINANCIAL RISK MANAGEMENT | |
Increase in percent (as a percent) | 1.00% |
Equity change | Rp 12 |
Yen | |
FINANCIAL RISK MANAGEMENT | |
Increase in percent (as a percent) | 5.00% |
Equity change | Rp (30) |
FINANCIAL RISK MANAGEMENT - Int
FINANCIAL RISK MANAGEMENT - Interest rate risk profit (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | Rp (72,326) | Rp (64,189) |
Interest rate risk | Fixed rate borrowings | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | (21,260) | (14,281) |
Interest rate risk | Variable rate borrowings | ||
FINANCIAL RISK MANAGEMENT | ||
Financial liabilities | Rp (22,822) | Rp (21,191) |
Increase in percent (as a percent) | 0.25% | |
Decrease in percent (as a percent) | 0.25% | |
Equity change | Rp 57 | |
Equity change | (57) | |
Net income change | 57 | |
Net income change | Rp (57) |
FINANCIAL RISK MANAGEMENT - Cre
FINANCIAL RISK MANAGEMENT - Credit risk (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT | ||
Maximum credit exposure | Rp 1,850 | |
Maximum share of total receivables held by any client (as a percent) | 5.25% | |
Credit risk | ||
FINANCIAL RISK MANAGEMENT | ||
Maximum credit exposure | Rp 30,680 | Rp 37,065 |
Credit risk | Cash and cash equivalents | ||
FINANCIAL RISK MANAGEMENT | ||
Maximum credit exposure | 17,435 | 25,145 |
Credit risk | Trade and other receivables, net | ||
FINANCIAL RISK MANAGEMENT | ||
Maximum credit exposure | 9,928 | 9,564 |
Credit risk | Contract assets, net | ||
FINANCIAL RISK MANAGEMENT | ||
Maximum credit exposure | 1,560 | |
Credit risk | Other current financial asset | ||
FINANCIAL RISK MANAGEMENT | ||
Maximum credit exposure | 1,314 | 2,173 |
Credit risk | Other non-current assets | ||
FINANCIAL RISK MANAGEMENT | ||
Maximum credit exposure | Rp 443 | Rp 183 |
FINANCIAL RISK MANAGEMENT - Liq
FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - Liquidity risk - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT | ||
Carrying amount | Rp 72,326 | Rp 64,189 |
Contractual cash flow | (88,459) | (79,110) |
Trade and other payables | ||
FINANCIAL RISK MANAGEMENT | ||
Carrying amount | 15,214 | 15,791 |
Contractual cash flow | (15,214) | (15,791) |
Accrued expenses | ||
FINANCIAL RISK MANAGEMENT | ||
Carrying amount | 12,769 | 12,630 |
Contractual cash flow | (12,769) | (12,630) |
Two-step loans | ||
FINANCIAL RISK MANAGEMENT | ||
Carrying amount | 949 | 1,098 |
Contractual cash flow | (1,075) | (1,247) |
Bonds and notes | ||
FINANCIAL RISK MANAGEMENT | ||
Carrying amount | 10,481 | 8,982 |
Contractual cash flow | (19,050) | (18,278) |
Bank loans | ||
FINANCIAL RISK MANAGEMENT | ||
Carrying amount | 27,263 | 20,293 |
Contractual cash flow | (33,376) | (24,365) |
Obligations under finance leases | ||
FINANCIAL RISK MANAGEMENT | ||
Carrying amount | 3,145 | 3,804 |
Contractual cash flow | (3,764) | (4,685) |
Other borrowings | ||
FINANCIAL RISK MANAGEMENT | ||
Carrying amount | 2,244 | 1,295 |
Contractual cash flow | (2,905) | (1,759) |
Other liabilities | ||
FINANCIAL RISK MANAGEMENT | ||
Carrying amount | 261 | 296 |
Contractual cash flow | (306) | (355) |
Less than one year | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (41,783) | (38,642) |
Less than one year | Trade and other payables | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (15,214) | (15,791) |
Less than one year | Accrued expenses | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (12,769) | (12,630) |
Less than one year | Two-step loans | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (242) | (251) |
Less than one year | Bonds and notes | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (1,562) | (929) |
Less than one year | Bank loans | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (10,441) | (7,721) |
Less than one year | Obligations under finance leases | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (1,049) | (1,083) |
Less than one year | Other borrowings | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (490) | (220) |
Less than one year | Other liabilities | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (16) | (17) |
1-2 years | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (14,384) | (7,514) |
1-2 years | Two-step loans | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (232) | (223) |
1-2 years | Bonds and notes | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (3,436) | (929) |
1-2 years | Bank loans | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (9,165) | (5,056) |
1-2 years | Obligations under finance leases | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (945) | (969) |
1-2 years | Other borrowings | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (570) | (303) |
1-2 years | Other liabilities | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (36) | (34) |
2-3 years | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (6,777) | (8,252) |
2-3 years | Two-step loans | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (205) | (215) |
2-3 years | Bonds and notes | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (1,231) | (2,873) |
2-3 years | Bank loans | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (3,991) | (3,979) |
2-3 years | Obligations under finance leases | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (781) | (866) |
2-3 years | Other borrowings | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (533) | (285) |
2-3 years | Other liabilities | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (36) | (34) |
3-4 years | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (7,405) | (4,736) |
3-4 years | Two-step loans | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (159) | (190) |
3-4 years | Bonds and notes | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (2,817) | (726) |
3-4 years | Bank loans | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (3,220) | (2,641) |
3-4 years | Obligations under finance leases | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (605) | (778) |
3-4 years | Other borrowings | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (495) | (266) |
3-4 years | Other liabilities | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (109) | (135) |
After 4 years | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (18,110) | (19,966) |
After 4 years | Two-step loans | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (237) | (368) |
After 4 years | Bonds and notes | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (10,004) | (12,821) |
After 4 years | Bank loans | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (6,559) | (4,968) |
After 4 years | Obligations under finance leases | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (384) | (989) |
After 4 years | Other borrowings | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | (817) | (685) |
After 4 years | Other liabilities | ||
FINANCIAL RISK MANAGEMENT | ||
Contractual cash flow | Rp (109) | Rp (135) |
FINANCIAL RISK MANAGEMENT - Cha
FINANCIAL RISK MANAGEMENT - Changes in liabilities (Details) Rp in Billions | 12 Months Ended |
Dec. 31, 2018IDR (Rp) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Balance at beginning of period | Rp 35,472 |
Net cash flows | 8,251 |
Acquisition | 58 |
Foreign exchange movement | 151 |
New leases | 168 |
Other changes | (18) |
Balance at end of period | 44,082 |
Short-term bank loans | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Balance at beginning of period | 2,289 |
Net cash flows | 1,759 |
Other changes | (5) |
Balance at end of period | 4,043 |
Two-step loans | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Balance at beginning of period | 1,098 |
Net cash flows | (214) |
Foreign exchange movement | 65 |
Balance at end of period | 949 |
Bonds and notes | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Balance at beginning of period | 8,982 |
Net cash flows | 1,498 |
Other changes | 1 |
Balance at end of period | 10,481 |
Long-term bank loans | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Balance at beginning of period | 18,004 |
Net cash flows | 5,088 |
Acquisition | 58 |
Foreign exchange movement | 86 |
Other changes | (16) |
Balance at end of period | 23,220 |
Obligations under finance leases | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Balance at beginning of period | 3,804 |
Net cash flows | (827) |
New leases | 168 |
Balance at end of period | 3,145 |
Other borrowings | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Balance at beginning of period | 1,295 |
Net cash flows | 947 |
Other changes | 2 |
Balance at end of period | Rp 2,244 |
CAPITAL MANAGEMENT - Capital st
CAPITAL MANAGEMENT - Capital structure (Details) - IDR (Rp) Rp in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
CAPITAL MANAGEMENT | ||
Short-term debts amount | Rp 4,043 | Rp 2,289 |
Long-term debts amount | 40,039 | 33,183 |
Total debts amount | 44,082 | 35,472 |
Equity attributable to owners of the parent company amount | 98,739 | 92,467 |
Total amount | Rp 142,821 | Rp 127,939 |
Short-term debts portion (as a percent) | 2.83% | 1.79% |
Long-term debts portion (as a percent) | 28.04% | 25.94% |
Total debts portion (as a percent) | 30.87% | 27.73% |
Equity attributable to owners of the parent company portion (as a percent) | 69.13% | 72.27% |
Total portion (as a percent) | 100.00% | 100.00% |
CAPITAL MANAGEMENT - Debt to eq
CAPITAL MANAGEMENT - Debt to equity ratio (Details) $ in Millions, Rp in Billions | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017USD ($) | Dec. 31, 2017IDR (Rp) | Dec. 31, 2016IDR (Rp) | Dec. 31, 2015IDR (Rp) |
CAPITAL MANAGEMENT | ||||||
Total interest bearing debts | Rp 44,082 | Rp 35,472 | ||||
Less cash and cash equivalents | $ (1,212) | (17,435) | $ (1,747) | (25,145) | Rp (29,767) | Rp (28,117) |
Net debt | 26,647 | 10,327 | ||||
Total equity attributable to owners of the parent company | Rp 98,739 | Rp 92,467 | ||||
Net debt-to-equity ratio (as a percent) | 26.99% | 26.99% | 11.17% | 11.17% |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - IDR (Rp) Rp in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Acquisitions of property and equipment - Credited to trade payables | Rp 4,275 | Rp 5,525 | Rp 6,199 |
Acquisitions of property and equipment - Advance paid | 2,837 | ||
Acquisitions of property and equipment - Non-monetary exchange | 816 | 636 | |
Acquisitions of property and equipment - Interest capitalization | 270 | 328 | 188 |
Acquisitions of property and equipment - Credited to obligations under finance leases | 201 | 518 | 368 |
Acquisitions of intangible assets: Credited to trade payables | Rp 235 | Rp 846 | Rp 41 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - IDR (Rp) Rp in Billions | Mar. 25, 2019 | Mar. 06, 2019 | Feb. 18, 2019 | Jan. 25, 2019 | Jan. 14, 2019 |
Major business combination | PST | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Percentage of ownership interest acquired | 95.00% | ||||
Shares acquired | 2,565,000 | ||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | |||||
Cash and cash equivalents | Rp 5 | ||||
Trade receivables | 121 | ||||
Property and equipment (Note 9) | 1,107 | ||||
Other assets | 113 | ||||
Current liabilities | (129) | ||||
Non-current liabilities | (378) | ||||
Other liabilities | (104) | ||||
Fair value of identifiable net assets acquired | 735 | ||||
Fair value of non controlling interest | (37) | ||||
Provisional goodwill | 415 | ||||
Fair value consideration transferred | Rp 1,113 | ||||
Transfers of right over shares to Dayamitra from Mrs. Rahina Dewayani | PST | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Shares acquired | 2,559,000 | ||||
Transfers of right over shares to Dayamitra from Mrs. Rahayu | PST | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Shares acquired | 6,000 | ||||
Telkomsel | Repayment of Borrowings | BNI | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Loans fully paid | Rp 1,000 | ||||
Telkomsel | Repayment of Borrowings | MUFG Bank, Ltd. ("MUFG Bank") | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Loans fully paid | Rp 750 | ||||
Telkomsel | Refund of Taxes | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Refund tax received | Rp 290.6 | Rp 290.6 |