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20231031_TLKM_Laporan Informasi dan Fakta Material_31483709_lamp3.pdf
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Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. and its subsidiaries Consolidated financial statements as of September 30, 2023 and for the nine months period then ended (unaudited)
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PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2023 AND FOR THE NINE MONTHS PERIOD THEN ENDED
(UNAUDITED)
TABLE OF CONTENTS
Page
Statement of the Board of Directors
Consolidated Statement of Financial Position 1
Consolidated Statement of Profit or Loss and Other Comprehensive Income 2
Consolidated Statement of Changes in Equity 3-4
Consolidated Statement of Cash Flows 5
Notes to the Consolidated Financial Statements 6-113
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of September 30, 2023 (unaudited) and December 31, 2022 (audited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
Notes September 30, 2023 December 31, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents - net 3,32,37 25,905 31,947
Other current financial assets - net 4,32,37 1,773 1,349
Trade receivables - net allowance for expected
credit losses
Related parties 5,32,37 1,682 1,620
Third parties 5,37 8,213 7,014
Contract assets - net 6,32,37 2,457 2,457
Other receivables - net 37 576 245
Inventories - net 7 1,475 1,144
Assets held for sale 11b 6 6
Contract cost 9 734 671
Prepaid taxes 27a 2,784 1,464
Claim for tax refund 27b 1 380
Other current assets 8,32 5,122 6,760
Total Current Assets 50,728 55,057
NON-CURRENT ASSETS
Contract assets - net 6,32,37 14 34
Long-term investments 10,37 8,714 8,653
Contract cost 9 1,519 1,741
Property and equipment 11,32,35a 176,438 173,329
Right-of-use assets 12 21,508 20,336
Intangible assets 14 8,023 8,302
Deferred tax assets - net 27f 4,396 4,117
Other non-current assets 13,27,32,37 4,872 3,623
Total Non-current Assets 225,484 220,135
TOTAL ASSETS 276,212 275,192
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables
Related parties 15,32,37 472 431
Third parties 15,37 12,973 18,026
Contract liabilities 17a,32 6,520 6,295
Other payables 37 477 463
Taxes payable 27c 4,803 5,372
Accrued expenses 16,32,37 13,044 15,445
Customer deposits 32 2,944 2,382
Short-term bank loans 18a,32,37 11,796 8,191
Current maturities of long-term
loans and other borrowings 18b,32,37 11,977 8,858
Current maturities of lease liabilities 12,37 5,689 4,925
Total Current Liabilities 70,695 70,388
NON-CURRENT LIABILITIES
Deferred tax liabilities - net 27f 1,051 1,023
Contract liabilities 17b,32 2,532 1,561
Long service award provisions 31 1,158 1,031
Pension benefits and other post-employment
benefits obligations 30 11,463 10,272
Long-term loans and other borrowings 19,32,37 26,345 27,331
Lease liabilities 12,37 13,192 13,736
Other liabilities 283 588
Total Non-current Liabilites 56,024 55,542
TOTAL LIABILITIES 126,719 125,930
EQUITY
Capital stock 21 4,953 4,953
Additional paid-in capital 2,711 2,711
Other equity 22 9,664 9,697
Retained earnings
Appropriated 29 15,337 15,337
Unappropriated 98,028 96,560
Net equity attributable to:
Owners of the parent company 130,693 129,258
Non-controlling interest 20 18,800 20,004
TOTAL EQUITY 149,493 149,262
TOTAL LIABILITIES AND EQUITY 276,212 275,192
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME
For the Nine Months Period Ended September 30, 2023 and 2022 (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
Notes 2023 2022
REVENUES 23,32 111,238 108,874
COST AND EXPENSES
Operation, maintenance, and telecommunication
service expenses 25,32 (28,864) (27,167)
Depreciation and amortization expenses 11,12,14 (24,081) (25,018)
Personnel expenses 24 (11,678) (11,155)
General and administrative expenses 26,32 (4,520) (4,449)
Interconnection expenses 32 (4,525) (3,865)
Marketing expenses 32 (2,588) (2,779)
Unrealized loss on changes in fair value of investments 10 (182) (3,084)
Other income - net 223 48
(Loss) gain on foreign exchange - net (41) 168
OPERATING PROFIT 34,982 31,573
Finance income 32 758 627
Finance cost 32 (3,462) (3,009)
Share of profit of long-term investment in associates 10 4 6
PROFIT BEFORE INCOME TAX 32,282 29,197
INCOME TAX (EXPENSE) BENEFIT 27d
Current (6,897) (7,278)
Deferred 4 897
(6,893) (6,381)
PROFIT FOR THE PERIOD 25,389 22,816
OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income (loss) to be reclassified to profit
or loss in subsequent periods:
Foreign currency translation 22 (33) 201
Share of other comprehensive income of
long-term investment in associates 10b - 1
Other comprehensive income (loss) not to be reclassified to profit
or loss in subsequent periods:
Defined benefit actuarial loss - net 30 (1,429) (1)
Other comprehensive income (loss) - net (1,462) 201
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 23,927 23,017
Profit for the period attributable to:
Owners of the parent company 19,499 16,581
Non-controlling interests 20 5,890 6,235
25,389 22,816
Total comprehensive income for the period attributable to:
Owners of the parent company 18,037 16,782
Non-controlling interests 5,890 6,235
23,927 23,017
BASIC EARNINGS PER SHARE
(in full amount) 28
Net income per share 196.84 167.38
Net income per ADS (100 Series B shares per ADS) 19,683.59 16,737.97
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Nine Months Period Ended September 30, 2023 and 2022 (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
Attributable to owners of the parent company
Retained earnings
Additional Non-controlling
Description Notes Capital stock paid-in capital Other equity Appropriated Unappropriated Net interests Total equity
Balance, January 1, 2023 4,953 2,711 9,697 15,337 96,560 129,258 20,004 149,262
Capital contribution from non-controlling interest
of subsidiary 1e - - - - - - 2,713 2,713
Changes in non-controlling interest - - - - - - 13 13
Cash dividend 29 - - - - (16,602) (16,602) (9,802) (26,404)
Repurchase of non-controlling interest shares 1e - - - - - - (18) (18)
Profit for the period 20 - - - - 19,499 19,499 5,890 25,389
Other comprehensive income - net - - (33) - (1,429) (1,462) - (1,462)
Balance, September 30, 2023 4,953 2,711 9,664 15,337 98,028 130,693 18,800 149,493
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Nine Months Period Ended September 30, 2023 and 2022 (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
Attributable to owners of the parent company
Retained earnings
Additional Non-controlling
Description Notes Capital stock paid-in capital Other equity Appropriated Unappropriated Net interests Total equity
Balance, January 1, 2022 4,953 2,711 9,395 15,337 89,250 121,646 23,753 145,399
Capital contribution from non-controlling interest
of subsidiary - - - - - - 45 45
Changes in non-controlling interest - - - - - - 12 12
Cash dividends 29 - - - - (14,856) (14,856) (7,537) (22,393)
Treasury stock 1e - - - - - - (681) (681)
Profit for the period 20 - - - - 16,581 16,581 6,235 22,816
Other comprehensive income - net - - 201 - - 201 - 201
Balance, September 30, 2022 4,953 2,711 9,596 15,337 90,975 123,572 21,827 145,399
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Nine Months Period Ended September 30, 2023 and 2022 (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
Notes 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers and other operators 111,475 107,580
Cash receipts from finance income 755 622
Cash receipts from tax refund 100 2,530
Cash payments for expenses (41,740) (34,063)
Cash payments to employees (12,877) (11,457)
Cash payments for corporate and final income taxes (8,001) (6,893)
Cash payments for finance costs (3,548) (3,066)
Cash payments for short-term and low-value lease assets - net 12 (2,234) (2,371)
Cash payments for value added taxes - net (1,112) (1,941)
Cash receipts payments for others - net (41) (75)
Net cash provided by operating activities 42,777 50,866
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from insurance claims 11 160 267
Proceeds from sale of property and equipment 11 83 391
Dividend received from associated company 10 14 10
Purchase of property and equipment 11,39 (22,733) (23,252)
Acquisition of tower by subsidiary 1e (1,684) -
Purchase of intangible assets 14,39 (1,588) (1,762)
Placement in other current financial assets (427) (207)
Addition of long-term investment in financial instrument 10 (315) (1,190)
Decrease (increase) in advances and other assets 13 228 (1,018)
Net cash used in investing activities (26,262) (26,761)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans and other borrowings 18,19 32,196 31,564
Proceeds from issuance of new shares of subsidiaries 1e 2,713 45
Repayments of loans and other borrowings 18,19 (26,448) (34,487)
Cash dividend paid to the Company's stockholders 21 (16,602) (14,856)
Cash dividend paid to non-controlling interests of subsidiaries 20 (9,802) (7,537)
Repayments of principal portion of lease liabilities (4,556) (5,764)
Placement in shares buyback from non-controlling interest
by subsidiary 1e (18) -
Net cash used in financing activities (22,517) (31,035)
NET DECREASE IN CASH AND CASH EQUIVALENTS (6,002) (6,930)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS (39) 277
ALLOWANCE FOR EXPECTED CREDIT LOSSES (1) (1)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 3 31,947 38,311
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 3 25,905 31,657
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
1. GENERAL
a. Establishment and general information
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. (the “Company”) was
originally part of “Post en Telegraafdienst”, which was established and operated commercially in
1884 under the framework of Decree No. 7 dated March 27, 1884 of the Governor General of the
Dutch Indies which 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”) (Note 21).
The Company was established based on Notarial Deed No. 128 dated September 24, 1991 of Imas
Fatimah, S.H. The 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 Company's Articles of Association have been amended several times, the latest amendments
made is in relation with adjustments of the Company’s business activities in the Articles of
Association with the Standard Classification of Indonesian Business Fields in 2020.
Amendments to the Articles of Association as stated in the Notary Deed of Ashoya Ratam, S.H.,
M.Kn. No. 37 dated June 22, 2022, the amendment has been received and approved by the
Minister of Law and Human Rights of the Republic of Indonesia (“MoLHR”) based on letter No.
AHU-0044650.AH.01.02. Year of 2022 dated June 29, 2022, concerning Acceptance of Notification
Approval of Amendment to the Articles of Association of the Limited Liability Company (Persero)
PT Telekomunikasi Indonesia Tbk.
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 by applying the Limited Liability
Company principle. In regard to achieving its objectives, the Company is involved in the following
activities:
i. Main business:
(a) Planning, building, providing, developing, operating, marketing or selling or leasing, and
maintaining telecommunications and information networks in a broad sense in accordance
with prevailing laws and regulations.
(b) Planning, developing, providing, marketing or selling, and improving telecommunications
and information services in a broad sense in accordance with prevailing laws and
regulations.
(c) Investing, including in the form of equity capital in other companies in line with and to achieve
the purposes and objectives of the Company.
ii. Supporting business:
(a) Providing payment transactions and money transferring services through
telecommunications and information network.
(b) Performing other activities and undertakings in connection with the optimization of the
Company's resources, among which including the utilization of the Company's property and
equipment and movable assets, information systems, education and training, and repairs
and maintenance facilities.
(c) Collaborating with other parties in order to optimize the information, communication or
technology resources owned by other parties as services provider in the information,
communication and technology industry, as to achieve the purposes and objectives of the
Company.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
1. GENERAL (continued)
a. Establishment and general information (continued)
The Company is domiciled and headquartered in Bandung, West Java, located at Jalan Japati
No. 1, Bandung.
The Company was granted several networks and/or services provision licenses by the Government
which are valid for an unlimited period of time as long as the Company complies with prevailing
laws and regulations 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”), replacing the previously known as Indonesian Directorate General of Post and
Telecommunications (“DGPT”).
The reports comprising of several information, such as network development progress, service
quality standard achievement, number of customers, license payment, and universal service
contribution. Meanwhile, for internet telephone services for public purpose, internet interconnection
service, and internet access service, additional information is required, such as operational
performance, customer segmentation, traffic, and gross revenue.
Details of these licenses are as follows:
1 Grant date/latest
License License No. Type of service renewal date
License to operate internet 127/KEP/DJPPI/ Internet telephone March 30, 2016
telephone services for KOMINFO/3/2016 services for public
public purpose purpose
License to operate internet 2176/KEP/M.KOMINFO/ Internet service December 30, 2016
service provider 12/2016 provider
License to operate content 1040/KEP/M.KOMINFO/ Content service May 16, 2017
service provider 16/2017 provider
License for the 1004/KEP/M.KOMINFO/ Internet interconnection December 26, 2018
implementation of internet 2018 services
interconnection services
License to operate data 046/KEP/M.KOMINFO/ Data communication August 3, 2020
communication system 02/2020 system services
services
License to operate IPTV 022/KEP/M.KOMINFO/ Multimedia IPTV February 25, 2021
service provider 02/2021 service provider
License of electronics Bank Indonesia License Electronics money and July 1, 2021
money issuer and money 23/587/DKSP/Srt/B money transfer
transfer service
License to operate fixed 073/KEP/M.KOMINFO/ Fixed network long August 23, 2021
network long distance 02/2021 distance direct line
direct line
License to operate fixed 082/KEP/M.KOMINFO/ Fixed international October 8, 2021
international network 02/2021 network
License to operate fixed 094/KEP/M.KOMINFO/ Fixed closed network December 9, 2021
closed network 02/2021
License to operate circuit 095/KEP/M.KOMINFO/ Circuit switched-based December 9, 2021
switched-based local 02/2021 and packet
fixed line network switched-based
local fixed line
network
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
1. GENERAL (continued)
b. Company’s Board of Commissioners, Board of Directors, Audit Committee, Corporate
Secretary, Internal Audit, and Employees
i. Boards of Commissioners and Directors
Based on resolutions made at Annual General Meeting (“AGM”) of Stockholders of the
Company as covered by Notarial Deed of Ashoya Ratam, S.H., M.Kn., No. 35 dated June 23,
2023 and No. 34, dated June 18, 2021, the composition of the Company’s Boards of
Commissioners and Directors were as follows:
September 30, 2023 31 Desember 2022
President Commissioner/ Bambang Permadi Bambang Permadi
Independent Commissioner Soemantri Brojonegoro Soemantri Brojonegoro
Independent Commissioner Wawan Iriawan Wawan Iriawan
Independent Commissioner Bono Daru Adji Bono Daru Adji
Independent Commissioner Abdi Negara Nurdin Abdi Negara Nurdin
Commissioner Arya Mahendra Sinulingga Arya Mahendra Sinulingga
Commissioner Marcelino Rumambo Pandin Marcelino Rumambo Pandin
Commissioner Ismail Ismail
Commissioner Rizal Mallarangeng Rizal Mallarangeng
Commissioner Isa Rachmatarwata Isa Rachmatarwata
Commissioner Silmy Karim -
President Director Ririek Adriansyah Ririek Adriansyah
Director of Enterprise & Business Service F.M. Venusiana R. F.M. Venusiana R.
Director of Digital Business Muhamad Fajrin Rasyid Muhamad Fajrin Rasyid
Director of Human Capital Management Afriwandi Afriwandi
Director of Finance and
Risk Management Heri Supriadi Heri Supriadi
Director of Network & IT Solution Herlan Wijanarko Herlan Wijanarko
Director of Strategic Portfolio Budi Setyawan Wijiaya Budi Setyawan Wijiaya
Director of Wholesale &
International Services Bogi Witjaksono Bogi Witjaksono
Director of Group Business Development Honesti Basyir -
Director of Consumer Service - F.M. Venusiana R.
ii. Audit Committee, Corporate Secretary, and Internal Audit
The composition of the Company’s Audit Committee, Corporate Secretary, and Internal Audit
were as follows:
September 30, 2023 December 31, 2022
Chairman Bono Daru Adji Bono Daru Adji
Member Bambang Permadi Bambang Permadi
Soemantri Brojonegoro Soemantri Brojonegoro
Member Wawan Iriawan Wawan Iriawan
Member Abdi Negara Nurdin Abdi Negara Nurdin
Member Emmanuel Bambang Suyitno Emmanuel Bambang Suyitno
Member Edy Sihotang Edy Sihotang
Corporate Secretary Edwin Julianus Sebayang R. Achmad Faisal
Internal Audit Daru Mulyawan Daru Mulyawan
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
1. GENERAL (continued)
b. Company’s Board of Commissioners, Board of Directors, Audit Committee, Corporate
Secretary, Internal Audit, and Employees (continued)
iii. Employees
As of September 30, 2023 and December 31, 2022, the Company and its subsidiaries
(collectively referred to as “the Group”) had 20,697 employees and 20,951 employees,
respectively.
c. Public offering of securities of the Company
The Company’s number of 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 were
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 Extraordinary 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.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
1. GENERAL (continued)
c. Public offering of securities of the Company (continued)
During the period of 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 had sold all such shares.
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. 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 increased 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). Profit per ADS information have been retrospectively adjusted to
reflect the changes in the ratio of ADS.
On May 16 and June 5, 2014, the Company deregistered from Tokyo Stock Exchange (“TSE”)
and delisted from the LSE, respectively.
As of September 30, 2023, all of the Company’s Series B shares are listed on the IDX and
37,264,181 ADS shares are listed on the NYSE (Note 21).
On June 16, 2015, the Company issued Continuous Bonds I Telkom Phase I 2015, with a nominal
amount of Rp2,200 billion for Series A with a seven-year period, Rp2,100 billion for Series B with
a ten-year period, Rp1,200 billion for Series C with a fifteen-year period, and Rp1,500 billion for
Series D with a thirty-year period, which respectively are listed on the IDX (Note 19b).
On December 21, 2015, the Company sold the remaining shares of treasury shares phase III.
On June 29, 2016, the Company sold the treasury shares phase IV.
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 of 1,737,779,800 shares of treasury stock
by reducing the Company’s capital stock.
10
Page 14
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries
As of September 30, 2023 and December 31, 2022, the Company has consolidated the following
directly and indirectly owned subsidiaries (Notes 2b and 2d):
i. Direct subsidiaries:
Total assets before
Start year of Percentage of ownership* elimination
operation September 30, December 31, September 30, December 31,
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Telekomunikasi Mobile 1995 70 65 104,172 100,991
Selular telecommunication
(“Telkomsel”) networks
and service
PT Dayamitra Leasing of towers 1995 72 72 56,352 56,072
Telekomunikasi Tbk. and other
(“Mitratel”) telecommunication
services
PT Multimedia Network 1998 100 100 19,136 18,710
Nusantara telecommunication
(“Metra”) service and
multimedia
PT Telekomunikasi International 1995 100 100 14,376 13,949
Indonesia telecommunication
International and information
(“Telin”) services
PT Sigma Cipta Consultation service 1988 100 100 7,681 8,522
Caraka of hardware
(“Sigma”) computer software,
and data center
PT Telkom Satelit Telecommunication - 1996 100 100 7,448 6,470
Indonesia provides satellite
(“Telkomsat”) communication
system and its
related services
and infrastructures
PT Graha Sarana Duta Developer, trade, 1982 100 100 5,855 5,865
("GSD") service, and
transportation
PT Telkom Akses Construction, 2013 100 100 4,568 5,308
(“Telkom Akses”) service and trade
in the field of
telecommunication
PT Telkom Data Data center 1996 100 100 3,512 3,202
Ekosistem
(“TDE”)
PT Metra-Net Multimedia 2009 100 100 1,952 1,731
(“Metra-Net”) portal service
PT Infrastruktur Construction, service 2014 100 100 1,336 1,360
Telekomunikasi and trading in
Indonesia the field of
(“Telkom Infra”) telecommunication
PT PINS Indonesia Telecommunication 1995 100 100 813 797
(“PINS”) construction and
services
PT Napsindo Telecommunication - 1999; ceased 60 60 5 5
Primatel provides Network operations on
Internasional Access Point January 13,
(“Napsindo”) ("NAP"), Voice 2006
Over Data
("VOD") and other
*Percentage of ownership amounting to 99.99% is presented with rounding of 100%.
All direct subsidiaries are domiciled in Indonesia.
11
Page 15
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries:
Total assets before
Start year of Percentage of ownership* elimination
operation September 30, December 31, September 30, December 31,
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Metra Digital Trading service 2013 100 100 9,085 9,019
Investama related to
(“MDI”) to information and
technology,
multimedia,
entertainment,
and investment
Telekomunikasi Telecommunication 2008 100 100 3,690 3,678
Indonesia and related
International Pte. Ltd. services
("Telin Singapore"),
domiciled in
Singapore
Telekomunikasi Investment 2010 100 100 3,312 2,981
Indonesia holding and
International Ltd. telecommunication
("Telin Hong Kong"), services
domiciled in
Hong kong
PT Infomedia Contact center 1984 100 100 2,304 2,268
Nusantara and content
(“Infomedia”) directory services
PT Telkom Landmark Property development 2012 55 55 2,045 2,100
Tower and management
(“TLT”) services
PT Finnet Indonesia Information 2006 60 60 1,817 1,248
(“Finnet”) technology
services
PT Persada Sokka Leasing of towers 2008 100 100 1,672 1,401
Tama and other
("PST") telecommunication
services
PT Nuon Digital Digital content 2010 100 100 1,454 1,199
Indonesia exchange hub
(“Nuon”) services
Telekomunikasi Telecommunication 2012 100 100 934 836
Indonesia networks, mobile,
International (TL) S.A. internet, and
("Telkomcel"), data services
domiciled in
Timor Leste
PT Telkomsel Mitra Business 2019 100 100 909 945
Inovasi management
(“TMI”) consulting and
investment
services
PT Metra Digital Telecommunication 2013 100 100 896 986
Media information and
(“MD Media”) other information
services
PT Telkomsel Provides service 2021 100 100 806 807
Ekosistem Digital related to
("TED") information and
technology,
multimedia,
entertainment,
and investment
*Percentage of ownership amounting to 99.99% is presented with rounding of 100%.
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
12
Page 16
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries (continued):
Total assets before
Start year of Percentage of ownership* elimination
operation September 30, December 31, September 30, December 31,
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Administrasi Health insurance 2002 100 100 735 632
Medika administration
(“Ad Medika”) services
PT Swadharma Cash replenishment 2001 51 51 433 458
Sarana Informatika services and
(“SSI”) ATM maintenance
TS Global Satellite services 1996 70 70 420 566
Network Sdn. Bhd.
(“TSGN”),
domiciled in
Malaysia
PT Digital Aplikasi Communication 2014 100 100 330 384
Solusi system services
("Digiserve")
PT Nusantara Sukses Service and trading 2014 100 100 301 301
Investasi
(“NSI”)
PT Graha Yasa Tourism service 2012 51 51 285 285
Selaras
(”GYS”)
PT Graha Telkomsigma Management and 1999 100 100 220 190
("GTS") consultation
services
PT Nutech Integrasi System integrator 2001 60 60 217 273
(“Nutech”) service provider
Telekomunikasi Telecommunication 2014 100 100 200 294
Indonesia and information
International Inc. services
(“Telin USA”),
domiciled in USA
PT Collega Inti Trading and 2001 70 70 198 173
Pratama services
("CIP")
PT Media Nusantara Consultation 2012 55 55 176 116
Data Global services
("MNDG")
Telekomunikasi Telecommunication 2013 70 70 144 125
Indonesia Intl and information
(Malaysia) Sdn. Bhd. services
(”Telin Malaysia”),
domiciled in
Malaysia
PT Teknologi Data Telecommunication 2013 100 100 112 7
Infrastruktur service and
(“TDI”) data center
Telekomunikasi Telecommunication 2013 100 100 86 33
Indonesia and information
International services
(Australia) Pty. Ltd.
(“Telin Australia”),
domiciled in
Australia
PT Metra TV Subscription 2013 100 100 46 34
(“Metra TV”) broadcasting
services
*Percentage of ownership amounting to 99.99% is presented with rounding of 100%
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
13
Page 17
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries (continued):
Total assets before
Start year of Percentage of ownership* elimination
operation September 30, December 31, September 30, December 31,
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Bosnet Distribution Trade and 2012 60 60 37 36
Indonesia consultation
(“BDI”) services
PT Pojok Celebes Travel agent 2008 100 100 32 33
Mandiri services
("PCM")
PT Metraplasa Network and 2012 60 60 30 30
(“Metraplasa”) e-commerce
services
*Percentage of ownership amounting to 99.99% is presented with rounding of 100%
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
e. Other important informations
i. The Company
On June 27, 2023, the Company signed the Spin-off Decree of IndiHome Business to Telkomsel
No. 140 that has been approved by AGMS based on Notarial Deed of Ashoya Ratam, S.H.,
M.Kn., No. 35 dated June 23, 2023. The value of IndiHome Business Segment to be transferred
is Rp58,250 billion. In parallel, Singapore Telecommunication Ltd. ("Singtel") also decided to
participate in the capital injection by injecting a cash deposit to Telkomsel of IDR 2,713 billion.
As a result of this, Telkom's effective ownership in Telkomsel increase to 69.9%, meanwhile
Singtel’s stake in Telkomsel becomes 30.1%. The increase in Telkomsel’s Capitals has effective
on July 1, 2023.
ii. Mitratel
On June 2, 2022, Mitratel announced to buyback its shares with a maximum amount of
Rp1,000 billion. The buyback period of Mitratel's shares is for three months starting from
June 2, 2022 to September 2, 2022. Mitratel has exercised buyback of 885,200,000 of its shares
or equivalent to Rp681 billion. On March 6, 2023, Mitratel announced another share buyback of
a maximum of Rp1,500 billion. The buyback period for Mitratel's shares starts on April 14, 2023.
Mitratel has conducted a share buyback on June 7, 2023 to September 30, 2023 amounting to
26,800,000 shares or equivalent to Rp18 billion.
On February 15, 2023, based on the Telecommunication Tower Conditional Sale and Purchase
Agreement (“CSPA”) between PT Indosat Tbk and Mitratel, Mitratel agreed to acquire 997
telecommunication towers belonging to PT Indosat Tbk for Rp1,648 billion. Mitratel and
PT Indosat Tbk have also agreed to leaseback by PT Indosat Tbk for the slots in
telecommunication towers which were transferred/acquired to Mitratel, in a total 983 sites for 10
years lease period. In addition, part of the agreement PT Indosat Tbk. have also agreed to
deliver order for 3,500 collocations for next 3 years compensate Mitratel for amounted Rp473
billion as commitment and as of September 30, 2023 Mitratel has paid amounted Rp406 billion.
14
Page 18
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
1. GENERAL (continued)
e. Other important informations (continued)
iii. Sigma
Based on Notarial Deed No. 120 dated April 19, 2022, of Jimmy Tanal, S.H., M.Kn., the
Company acquired Sigma shares from Metra, resulted in 56.39% ownership by the Company
and diluting Metra’s ownership into 43.61%.
f. 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 Indonesian Financial Accounting Standards,
which have been completed and authorized for issuance by the Board of Directors of the Company
on October 31, 2023.
15
Page 19
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES
The Group consolidated financial statements have been prepared in accordance with Financial
Accounting Standards ("Standar Akuntansi Keuangan” or “SAK") including Indonesian Statement of
Financial Accounting Standards ("Pernyataan Standar Akuntansi Keuangan" or “PSAK”) and
interpretation of Financial Accounting Standards ("Interpretasi Standar Akuntansi Keuangan" or “ISAK”)
in Indonesia published by the Financial Accounting Standards Board of Institute of Indonesian
Chartered Accountants and Regulation No. VIII.G.7 of the Capital Market and Financial Institution
Supervisory Agency (“Bapepam-LK”) regarding the Presentation and Disclosure of Financial
Statements of Issuers or Public Companies, enclosed in the decision letter KEP-347/BL/2012.
a. Basis of preparation of consolidated 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.
The reporting currency used in the consolidated financial statements is the Indonesian Rupiah
(“Rp”) which is also the functional currency of each entity in the group except for certain subsidiaries
which have the functional currency of the United States Dollar, Australian Dollar and Malaysian
Ringgit. Figures in the consolidated financial statements which still contain values but below Rp1
billion and US$ 1 million, are presented with zeros.
New accounting standards
On January 1, 2023, the Group adopted the new and revised statement of financial accounting
standards and interpretations of financial accounting standards effective from that date.
Adjustments to the Group's accounting policies have been made as required, in accordance with
the transitional provisions of the respective standards and interpretations. The adoption of the new
and revised standards and interpretations did not result in major changes to the Group's accounting
policies and had no material effect on the amounts reported for the current or prior financial year:
i. Amendment PSAK 1: Presentation of Financial Statements
ii. Amendment PSAK 16: Fixed Assets
iii. Amendment PSAK 25: Accounting Policies, Changes in Accounting Estimates, and Errors
iv. Amendment to PSAK 46: Income Tax
Accounting standards issued but not yet effective
Effective January 1, 2024
i. Amendment PSAK 1: Presentation of Financial Statements
This amendment clarifies long-term liabilities with covenant and the classification of liabilities as
short-term liabilities or long-term liabilities
ii. Amendment PSAK 73: Leases
This amendment regulates lease liabilities in sale and leaseback transactions.
16
Page 20
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
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.
Generally, there is a presumption that a majority of voting rights results in control. To support this
presumption and when the Group has less than a majority of the voting or similar rights of an
investee, the Group considers all relevant facts and circumstances in assessing whether it has
power over an investee, including:
i. The contractual arrangement with the other vote holders of the investee,
ii. Rights arising from other contractual arrangements, and
iii. The Group's voting rights and potential voting rights.
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.
All intra-Group assets and liabilities, equity, revenue and expenses and cash flow relating to
transactions within Group are fully eliminated on consolidation.
In case of loss of control over a subsidiary, the Group:
i. derecognizes the assets (including goodwill) and liabilities of the subsidiary at the carrying
amounts on the date when it loses control;
ii. derecognizes the carrying amounts of any non-controlling interests of its former subsidiary on
the date when it loses control;
iii. recognizes the fair value of the consideration received (if any) from the transaction, events, or
condition that caused the loss of control;
iv. recognizes the fair value of any investment retained in the subsidiary at fair value on the date
of loss of control; and
v. recognizes any surplus or deficit in profit or loss that is attributable to the Group.
17
Page 21
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
c. Transactions with related parties
The Group has transactions with related parties. The definition of related parties used is in
accordance with the Bapepam-LK’s Regulation No. VIII.G.7 regarding the Presentations and
Disclosures of Financial Statements of Issuers or Public Companies, enclosed in the decision letter
No. KEP-347/BL/2012. The party which is considered as a related party is a person or entity that
is related to the entity that is preparing its financial statements.
Under the Regulation of Bapepam-LK No. VIII.G.7, a government-related entity is an entity that is
controlled, jointly controlled or significantly influenced by the government. Government in this
context is the Minister of Finance or the Local Government, as the shareholder of the entity.
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 and goodwill
Business combination is accounted for using the acquisition method. The consideration transferred
is measured at fair value, which is the aggregate of the fair value of the assets transferred, liabilities
incurred or assumed, and the equity instruments issued in exchange for control of the acquiree.
For each business combination, non-controlling interest is measured at fair value or at the
proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is
made on a transaction-by-transaction basis. Acquisition-related costs are expensed as incurred.
The acquiree’s identifiable assets and liabilities are recognized at their fair values at the acquisition
date.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration
transferred and the amount recognized for non-controlling interests, and any previous interest
held, over the net identifiable assets acquired and liabilities assumed. If the fair value of net assets
acquired is in excess of the aggregate consideration transferred, the Group re-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 recognized at the acquisition date. If the re-
assessment still results in an excess of the fair value of net assets acquired over the aggregate
consideration transferred, then the gain is recognized in profit 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 recognized in profit or loss when
adjustments are recorded outside the measurement period. Changes in the fair value of the
contingent consideration that qualify as measurement period adjustments are adjusted
retrospectively, with corresponding adjustments made against goodwill. Measurement-period
adjustments are adjustments that arise from additional information obtained during the
measurement period, which cannot exceed one year from the acquisition date, about facts and
circumstances that existed at the acquisition date.
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 recognized 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 recognized
as of that date. The measurement period ends immediately after the Company receives the
information about the facts and circumstances that existed at the acquisition date or learns that
additional information cannot be obtained. However, the measurement period must not exceed one
year from the date of acquisition.
18
Page 22
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
d. Business combinations and goodwill (continued)
In a business combination achieved in stages, the acquirer remeasures its previously held equity
interest in the acquiree at its acquisition-date fair value and recognizes the resulting gain or loss, if
any, in profit or loss.
Based on PSAK 38 (Revised 2012), “Common Control Business Combination”, the transfer of
assets, liabilities, shares or other ownership instruments among the companies under common
control would not result in a gain or loss for the Company or individual entity in the same group.
Since the restructuring transaction between entities under common control does not result in a
change of the economic substance of the ownership of assets, liabilities, shares, or other
instruments of ownership, which are exchanged, assets or liabilities transferred are recorded at
book value using the pooling-of-interests method.
In applying the pooling-of-interests method, the components of the financial statements for the
period during the restructuring occurred must be presented in such a manner as if the restructuring
has occurred since the beginning of the earliest period presented. The excess of consideration paid
or received over the carrying value of interest acquired, net of income tax, is directly recognized to
equity and presented as “Additional Paid-in Capital” under the equity section of the consolidated
statement of financial position.
At the initial application of PSAK 38 (Revised 2012), all balances of the Difference In Value of
Restructuring Transactions of Entities under Common Control was reclassified to “Additional Paid-
in Capital” in the consolidated statement of financial position.
e. Cash and cash equivalents
Cash and short-term deposits in the statement of financial position comprise cash in banks and on
hand and short-term highly liquid deposits with a maturity of three months or less, that are readily
convertible to a known amount of cash and subject to an insignificant risk of changes in value.
For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are
considered an integral part of the Group’s cash management.
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 (Note 2u).
f. Investments in associates
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.
19
Page 23
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
f. Investments in associates (continued)
The Group’s investments in its associates are accounted for using the equity method.
Under the equity method, the investment in an associate is initially recognized at cost. The carrying
amount of the investment is adjusted to recognize changes in the investor’s share of the net assets
of the associate since the acquisition date. On acquisition of the investment, any difference between
the cost of the investment and the entity's share of the net fair value of the investee's identifiable
assets and liabilities is accounted for as follows:
i. 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
ii. Any excess of the entity's share of the net fair value of the investee's identifiable assets and
liabilities over the cost of the investment is included as income in the determination of the
entity's share of the associate or joint venture's profit or loss in the period in which the
investment is acquired.
The consolidated statements of profit or loss and other comprehensive income reflect the Group’s
share of the results of operations of the associate. Any change in the other comprehensive income
of the associate is presented as part of other comprehensive income. In addition, when there has
been a change recognized directly in the equity of the associate, the Group recognizes 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 recognizes
the amount of impairment as the difference between the recoverable amount of the investments in
the associates and their carrying value.
These assets are included in “Long-term investments” in the consolidated statements of financial
position.
For the reporting purpose of investment in associates using the equity method, the assets and
liabilities as of the statement of financial position date with functional currency other than Rupiah
are translated into Indonesian rupiah using the rate of exchange prevailing at that date, while
revenues and expenses are translated into Indonesian rupiah at the average rates of exchange for
the year. The resulting translation adjustments are reported as part of “translation adjustment” in
the equity section of the consolidated statements of financial position.
g. Trade and other receivables
Trade and other receivables are recognized initially at fair value and subsequently measured at
amortized cost, less a loss allowance based on lifetime expected credit losses at each reporting
date. The Group has made allowance for expected credit losses based on the collective
assessment of historical impairment rates and individual assessment of its customers’ credit
history, adjusted for forward-looking factors specific from the customers and the economic
environment. Receivables are written-off in the year in which they are determined to be
uncollectible (Note 2u).
20
Page 24
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
h. Inventories
Inventories consist of components, which represent telephone terminals, cables, and other spare
parts. Inventories also include Subscriber Identification Module ("SIM") cards, handsets, wireless
broadband modems, and prepaid vouchers which are expensed upon sale.
Inventories are valued at the lower of cost and net realizable value. Net realizable value is
determined by either estimating the selling price in the ordinary course of business, less estimated
cost to sell or determining the prevailing replacement costs.
The costs of inventories consist of the purchase price, import duties, other taxes, transport,
handling, and other costs directly attributable to their acquisition.
Cost is determined using the weighted average method.
The amounts of any write-down of inventories below cost to net realizable value and all losses
of inventories are recognized as 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 recognized as a reduction in the amount of general and administrative expenses
in the year in which the reversal occurs.
Provision for obsolescence is primarily based on the estimated forecast of future usage of these
inventory items.
i. Prepaid expenses
Prepaid expenses are amortized over their future beneficial periods using the straight-line method.
j. Assets held for sale
Assets (or disposal groups) are classified as held for sale when their carrying amount is to be
recovered principally through a sale transaction rather than through continuing use and a sale is
considered highly probable. Assets held for sale 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 or intangible assets and depreciation or amortization on such assets are ceased.
k. Intangible assets
Intangible assets are recognized if it is highly probable that the expected future economic benefits
that are attributable to each asset will flow to the Group, and the cost of the asset can be reliably
measured.
Intangible assets are stated at cost less accumulated amortization and impairment losses, if any.
Intangible assets are amortized over their estimated useful lives. The amortization period and the
amortization method for an intangible asset with a finite useful life are reviewed at least at the end
of each reporting period. When the carrying amount of an intangible asset exceeds its estimated
recoverable amount, the asset is written down to its estimated recoverable amount.
21
Page 25
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
k. Intangible assets (continued)
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 derecognized on disposal, or when no further economic benefits are
expected, either from further use or from disposal. The difference between the carrying amount
and the net proceeds received from disposal is recognized in the consolidated statements of profit
or loss and other comprehensive income.
l. Property and equipment
Property and equipment are stated at cost less accumulated depreciation, and impairment losses,
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, except land rights, are depreciated using the straight-line method based
on the estimated useful lives of the assets as follows:
Years
Buildings 15-50
Leasehold improvements 2-15
Switching equipment 3-15
Telegraph, telex, and data communication equipment 5-15
Transmission installation and equipment 3-40
Satellite, earth station, and equipment 3-20
Cable network 5-25
Power supply 3-20
Data processing equipment 3-20
Vehicles 4-8
Other telecommunication peripherals 5
Office equipment 2-5
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. Based on review the useful life of towers in
Indonesia are changed from previous year in line with technological development and changes in
the level of usage expectations. 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.
22
Page 26
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
l. Property and equipment (continued)
Property and equipment acquired in exchange for a non-monetary asset or for a combination of
monetary and non-monetary assets are measured at fair 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 otherwise disposed of, their cost and the related accumulated
depreciation are derecognized from the consolidated statement of financial position and the
resulting gains or losses on the disposal or sale of the property and equipment are recognized in
the consolidated statements of profit or loss and other comprehensive income.
Certain computer hardware can not be used without the availability of certain computer software.
In such circumstance, the computer software is recorded as part of the computer hardware. If the
computer software is independent from its computer hardware, it is recorded as part of intangible
assets.
The cost of maintenance and repairs are charged to the consolidated statements of profit or loss
and other comprehensive income as incurred. Significant renewals and betterments are capitalized
to the related property and equipment account.
Property under construction is stated at cost less impairment (if any), 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
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration. The lease term corresponds to the non-cancellable period of each contract,
except in cases where the Group is reasonably certain of exercising renewal options contractually
foreseen.
The Group has made use of the package of practical expedients available under PSAK 73, which
among other things:
• the use of a single discount rate to a portfolio of leases with reasonably similar characteristics;
• the accounting for operating leases with a remaining lease term of less than 12 months as
short-term leases;
• the exclusion of initial direct costs for the measurement of the right-of-use assets (“ROU”) as
short-term leases;
• the use of hindsight in determining the lease term where the contract contains options to
extend or terminate the lease;
• not to separate non-lease components from lease components, and instead, account for both
as a single lease component; and
• not to recognize a lease liability and a ROU asset for leases where the underlying assets are
low-value assets (i.e. underlying assets with a maximum value of US$5,000 or Rp50 million
when it is new).
23
Page 27
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
m. Leases (continued)
The Group applies the definition of a lease and related guidance set out in PSAK 73 to all lease
contracts.
i. The Group as lessee
The Group applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. The Group recognizes lease liabilities to
make lease payments and ROU assets representing the right to use the underlying assets.
The Group recognizes ROU assets at the commencement date of the lease. ROU assets are
measured at cost, less any accumulated amortization and impairment losses, and adjusted for
any remeasurement of lease liabilities. The cost of ROU assets includes the amount of lease
liabilities recognized, initial direct costs incurred, restoration costs and lease payments made
at or before the commencement date less any lease incentives received.
ROU assets are amortized on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets, as follows:
Years
Land rights 1-33
Buildings 1-15
Transmission installation and equipment 3-25
Vehicles 4-8
Others 2-25
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation is calculated using the estimated useful
life of the asset. The ROU assets are subject to impairment in accordance with PSAK 48
Impairment of Assets.
Lease liabilities
At the commencement date of the lease, the Group recognizes lease liabilities measured at
the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts expected
to be paid under residual value guarantees. The lease payments also include the exercise
price of a purchase option reasonably certain to be exercised by the Group and payments of
penalties for terminating the lease, if the lease term reflects the Group exercising the option to
terminate. Variable lease payments that do not depend on an index or a rate are recognized
as expenses in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing
rate at the lease commencement date because the interest rate implicit in the lease is not
readily determinable. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the lease payments, or a change in the assessment of
an option to purchase the underlying asset.
Short-term leases with a duration of less than 12 months and low-value assets leases, as well
as those lease elements, partially or totally not complying with the principles of recognition
defined by PSAK 73 will be treated similarly to operating leases. The Group will recognize
those lease payments on a straight-line basis over the lease term in the consolidated
statements of profit or loss and other comprehensive income.
24
Page 28
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
m. Leases (continued)
ii. The Group as lessor
Under PSAK 73, a lessor continues to classify leases as either finance leases or operating
leases and account for those two types of leases differently. Leases in which the Group transfers
substantially all the risks and rewards incidental to ownership of an asset are classified as
finance leases, otherwise it will be classified as operating leases. Lease classification is made
at the inception date and is reassessed only if there is a lease modification.
At the commencement date, the Group recognizes assets held under a finance lease at an
amount equal to the net investment in the lease and present it as finance lease receivable. The
net investment in the lease includes fixed payments (including in substance fixed payments)
less any lease incentives receivable, variable lease payments that depend on an index or a rate,
and residual value guarantees provided to the lessor by the lessee. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the lessee
and payments of penalties for terminating the lease, if the lease term reflects the Group
exercising the option to terminate.
As required by PSAK 71, an allowance for expected credit loss has been recognized on the
finance lease receivables and presented under “Other receivables”.
Rental income arising from operating leases is accounted for on a straight-line basis over the
lease terms and is included in revenue in the consolidated statement of profit or loss and other
comprehensive income due to its operating nature. Initial direct costs incurred in negotiating and
arranging an operating lease are added to the carrying amount of the underlying assets and
recognized over the lease term on the same basis as rental income. Contingent rents are
recognized as revenue in the period in which they are earned.
If an arrangement contains lease and non-lease components, the Group applies PSAK 72
Revenue from Contracts with Customers to allocate the consideration in the contract. Revenue
arising from operating lease is recorded as Revenue from lessor transactions (Note 2r).
n. Deferred charges - land rights
Costs incurred to process the initial legal land rights are recognized as part of the property and
equipment and are not amortized. Costs incurred to process the extension or renewal of legal land
rights are deferred and amortized using the straight-line method over the shorter of the legal term
of the land rights or the economic life of the land.
o. Trade payables
Trade payables are obligations to pay for goods 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 recognized initially at fair value and subsequently measured at amortized cost
using the effective interest method.
25
Page 29
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
p. Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are
subsequently carried at amortized cost; any difference between the proceeds (net of transaction
costs) and the redemption value is recognized in the consolidated statements of profit or loss and
other comprehensive income over the period of the borrowings using the effective interest method.
Fees paid on obtaining loan facilities are recognized as transaction costs of the loan to the extent
that it is probable that some or all of the facilities will be drawn down. In this case, the fee is deferred
until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of
the facilities will be drawn down, the fee is capitalized as a prepayment for liquidity services and
amortized over the period of the facilities to which it relates.
q. Foreign currency translations
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):
September 30, 2023 December 31, 2022
Buy Sell Buy Sell
United States Dollar (“US$”) 1 15,451 15,461 15,567 15,571
Australian Dollar (“AU$”) 1 10,013 10,021 10,583 10,589
Singapore Dollar (“SGD”) 1 11,339 11,350 11,614 11,622
New Taiwan Dollar (“TWD”) 1 480.60 481.45 508.15 508.47
Euro (“EUR”) 1 16,389 16,406 16,623 16,635
Japanese Yen ("JPY") 1 103.63 103.72 118.12 118.17
Malaysian Ringgit ("MYR") 1 3,291 3,296 3,529 3,539
Hong Kong Dollar (“HKD”) 1 1,973 1,975 1,996 1,997
The result of foreign exchange gains or losses, realized and unrealized, are credited or charged to
the consolidated statements of profit or loss and other comprehensive income of the current year,
except for foreign exchange differences incurred on borrowings during the construction of qualifying
assets which are capitalized to the extent that the borrowings can be attributed to the construction
of those qualifying assets (Note 2l).
26
Page 30
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition
Revenue from contract with customers
PSAK 72 establishes a comprehensive framework to determine how, when, and how much revenue
is to be recognized. 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.
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.
For prepaid services, initial package sales (also known as SIM cards and initial charging
vouchers) and top up vouchers are initially recognized as contract liabilities. The Group
recognizes contract assets for the services from postpaid customers that have not been billed.
All mobile services revenues are recognized 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 estimates 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.
The consideration that is received is allocated between the telecommunication services sold
and the points issued, with the consideration allocated to points that are equal to its fair value.
The fair value of points issued is deferred and recognized as revenue when the points are
redeemed, expired, or when the program is terminated.
ii. Consumer
Revenue from consumer primarily comprises of revenue from fixed telephone and Indihome
services. Revenues from fixed telephone service are derived from customer who subscribes to
fixed telephone service only, while revenues from Indihome service are derived from customer
who subscribes to internet services or to bundled package with combination of consumer
service (i.e. telephone, internet and data, and paid TV). Those services are offered on a
postpaid basis and billed in the following month. In 2021, the Group has applied a new term
and condition that the contract with customer is an open-ended contract with minimum
12-month contract and substantive early termination penalty. The contract duration under
PSAK 72 is 12-month contract and can be renewed in monthly contract basis afterward.
All consumer services are recognized using the output method based on the customer's actual
usage or time elapsed basis as the customer simultaneously receives and consumes the
benefits provided by the Group.
27
Page 31
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition (continued)
Revenue from contract with customers (continued)
ii. Consumer (continued)
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 as contract
liabilities and recognizes 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 customers primarily comprises of revenue from providing telephone
service, internet and data, information technologies, and other services (e.g. 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 customers are recognized 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 recognized at 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
recognized 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 customers are offered as bundled arrangements. For
bundled arrangements, the product and/or service in the contract is accounted for as a single
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
cumulative revenue recognized will not occur when the uncertainty associated with the variable
consideration is subsequently resolved.
28
Page 32
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition (continued)
Revenue from contract with customers (continued)
iii. Enterprise (continued)
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. Wholesale and International Business (“WIB”)
Revenue from WIB is mainly comprises of interconnections service for interconnection of other
telecommunications carriers’ subscriber calls to the Group’s subscribers (incoming call) 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
recognized based on the output method using the basis of the actual recorded traffic for the
month.
Contract assets
A contract asset is initially recognized for revenue earned from delivery of goods or services
because the receipt of consideration is conditional on certain milestones or upon completion of the
project. Upon completion of the milestones or the project, the amount recognized as contract assets
is reclassified to trade receivables.
Contract assets are subject to impairment assessment.
Contract liabilities
A contract liability is recognized if a payment is received or a payment is due (whichever is earlier)
from a customer before the Group transfers the related goods or services. Contract liabilities are
recognized as revenue when the Group performs under the contract (i.e., transfers control of the
related goods or services to the customer).
Incremental cost of obtaining/fulfilling contract with customers
The incremental costs of obtaining/fulfilling contracts with customers, which principally are
comprised of sales commissions and contract fulfilment costs, are initially recognized on the
consolidated statements of financial position as contract costs. These costs are subsequently
amortized 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.
At the end of each reporting year, the Group evaluates whether there is an indication that
capitalized contract costs may be impaired. An impairment exists when the carrying amount of the
contract costs exceeds the amount expected to be received in exchange for goods and services.
When impairment exists, an impairment loss is recognized in profit or loss.
29
Page 33
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
r. Revenue and expense recognition (continued)
Revenue from lessor transactions
Revenue from lessor transactions comprises of revenue from telecommunication tower operating
leases and other rental. Rental income is recognized 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.
Expenses
Expenses are recognized as they are incurred.
s. Employee benefits
i. Short-term employee benefits
All short-term employee benefits which consist of salaries and related benefits, vacation pay,
incentives and other short-term benefits are recognized as expense on undiscounted basis
when employees have rendered service to the Group.
ii. Post-employment benefit plans and other long-term employee benefits
Post-employment benefit plans consist of funded and unfunded defined benefit pension plans,
defined contribution pension plan, other post-employment benefits, post-employment health
care benefit plan, defined contribution health care benefit plan and obligations under the Labor
Law.
Other long-term employee benefits consist of Long Service Awards (“LSA”), Long Service Leave
(“LSL”), and pre-retirement benefits.
The cost of providing benefits under post-employment benefit plans and other long-term
employee benefits calculation is performed by an independent actuary using the projected unit
credit method.
The net obligations in respect of the defined pension benefit plans and post-retirement health
care benefit plans are calculated at the present value of estimated future benefits that the
employees have earned in return for their service in the current and prior periods less the fair
value of plan assets. The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rates of Government bonds that
are denominated in the currencies in which the benefits will be paid and that have terms to
maturity approximating the terms of the related retirement benefit obligation. Government bonds
are used as there are no deep markets for high quality corporate bonds.
Plan assets are assets owned by defined benefit pension 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 gain and losses, the effect of the asset ceiling
(excluding amounts included in net interest on the net defined benefit liability (asset)) and the
return on plan assets (excluding amounts included in net interest on the net defined benefit
liability (asset)) are recognized immediately in the consolidated statements of financial position
with a corresponding debit or credit to retained earnings through OCI in the period in which they
occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognized immediately in profit or loss on the earlier of:
(a) the date of plan amendement or curtailment ; and
(b) the date that the Group recognized restructuring-related costs.
30
Page 34
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
s. Employee benefits (continued)
ii. Post-employment benefit plans and other long-term employee benefits (continued)
Net interest is calculated by applying the discount rate to the net defined benefit liabilities or
assets.
Gains or losses on curtailment are recognized when there is a commitment to make a material
reduction in the number of employees covered by a plan or when there is an amendment of
defined benefit plan terms such as that a material element of future services to be provided by
current employees will no longer qualify for benefits, or will qualify only for reduced benefits.
Gains or losses on settlement are recognized when there is a transaction that eliminates all
further legal or constructive obligation for part or all of the benefits provided under a defined
benefit plan (other than the payment of benefit in accordance with the program and included in
the actuarial assumptions).
For defined contribution plans, the regular contributions constitute net periodic costs for the
period in which they are due and, as such, are included in “personnel expenses” as they become
payable.
In April 2022, the Institute of Indonesia Chartered Accountants’ Accounting Standard Board
issued a press release regarding attribution of benefits to periods of service in accordance with
PSAK 24: Imbalan Kerja which was adopted from IAS 19 Employee Benefits. The press release
conveyed the information that the fact pattern of the pension program based on the Labor Law
currently enacted in Indonesia is similar to those responded and concluded in the IFRS
Interpretation Committee (“IFRIC”) Agenda Decision Attributing Benefit to Periods of Service
IAS 19. The Group has adopted the said press release and accordingly changed its accounting
policy regarding attribution of benefits to periods of service previously applied.
In prior years, the Group attributed benefits under the defined benefit plan’s benefit formula to
periods of service from the date when employees provide their services until their retirement
age. The Group changed the policy for attributing benefits under the plan to the date when
employee service first leads to benefits under the plan until the date when further employee
service will lead to no material amount of further benefits under the plan.
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
recognized as an expense in the consolidated statements of profit or loss and other
comprehensive income and credited to additional paid-in capital at the grant date.
31
Page 35
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
t. Taxes
Income tax
Current and deferred income taxes are recognized as income or an expense and included in the
consolidated statements of profit or loss and other comprehensive income, except to the extent
that the income tax arises from a transaction or event which is recognized directly in equity, in
which case, the income tax is recognized directly in equity.
Current income tax assets and liabilities are measured at the amounts expected to be recovered
or paid by using the tax rates and tax laws that have been enacted or substantively enacted at
each reporting date. Management periodically evaluates positions taken in Annual Tax Returns
("Surat Pemberitahuan Tahunan"/"SPT Tahunan") 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.
Tax assessment
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 have been determined.
The additional taxes and penalty imposed through an SKP are recognized as revenue or expense
in the current year profit or loss, unless objection/appeal is taken. The additional taxes and penalty
imposed through the SKP are deferred as long as they meet the asset recognition criteria.
Deferred tax
The Group recognizes deferred tax assets and liabilities for temporary differences between the
financial and tax bases of assets and liabilities at each reporting date. The Group also recognizes
deferred tax assets resulting from the recognition of future tax benefits, such as the benefit of tax
losses carried forward to the extent their future realization is probable. Deferred tax assets and
liabilities are measured using enacted or substantively enacted tax rates and tax laws at each
reporting date which are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced if it is
no longer probable that sufficient taxable profit will be available to compensate part or all of the
benefits of deferred tax assets. Unrecognized deferred tax assets are re-assessed at each
reporting date and recognized if it is probable that future taxable profits will be available for
recovery. Tax deductions arising from the reversal of deferred tax assets are excluded from
estimates of future taxable income.
Deferred tax transactions which are recognized outside profit or loss. Therefore, deferred taxes on
these transactions are recognized either in other comprehensive income or recognized directly in
equity.
Deferred tax assets and liabilities are offset in the consolidated statements of financial position, if
and only if it has a legally enforceable right to set off current tax assets and liabilities and the
deferred tax assets and liabilities relate to income taxes levied by the same Tax Authority on either
the same taxable entity or different taxable entities which intend either to settle current tax liabilities
and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each
future period in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
32
Page 36
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
t. Taxes (continued)
Value Added Tax (“VAT”)
Revenues, expenses and assets are recognized net of the VAT amount except:
i. VAT arising from the purchase of assets or services that cannot be credited by the Tax Office,
which VAT is recognized as part of the acquisition cost of the asset or as part of the applied
expenses; and
ii. Receivables and payables are presented including the amount of VAT.
Uncertainty over income tax
ISAK 34: Uncertainty Over Income Tax Treatments stated that the recognition and measurement
of tax assets and liabilities that contain uncertainty over income tax are determined by considering
whether to be treated separately or together, the assumptions used in the examination of tax
treatments by the Tax Authorities, consideration the probability that the Tax Authorities will accept
uncertain tax treatment and re-consideration or estimation if there is a change in facts and
circumstances.
If the acceptance of the tax treatment by the Tax Authorities is probable, the measurement is in
line with income tax fillings. If the acceptance of the tax treatment by the Tax Authorities is not
probable, the Group measures its tax balances using the method that provides the better predict
of resolution (i.e. most likely amount or expected value).
Final tax
Indonesian tax regulations impose final tax on several types of transactions based on the gross
value of the transaction. Therefore, final tax which is charged based on such transaction remains
subject to tax even though the tax payer incurred a loss on the transaction.
Final tax on construction services and lease are presented as part of “Other income - net”.
u. 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 amortized
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 of 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, transactions costs.
Trade receivables that do not contain a significant financing component or which the Group
has applied the practical expedient are measured at the transaction price in determined under
PSAK 72.
33
Page 37
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
i. Financial assets (continued)
In order for a financial asset to be classified and measured at amortized 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 (“SPPI”) test and is performed at 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 marketplace (regular way trades) are recognized
on the trade date, i.e., the date that the Group commits to buy or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
(a) Financial assets at amortized cost (debt instruments)
The Group measures financial assets at amortized 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 amortized cost are subsequently measured using the effective interest
rate (“EIR”) method and are subject to impairment. Gains and losses are recognized in
profit or loss when the asset is derecognized, modified or impaired. The Group’s financial
assets at amortized cost consist of cash and cash equivalents, other current financial
assets, trade and other receivables, and other non-current assets.
(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 recognized in the statement of profit or loss and
computed in the same manner as for financial assets measured at amortized cost. The
remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative
fair value change recognized in OCI is recycled to profit or loss.
The Group has no debt instruments classified at FVTOCI with recycling of cumulative
gains and losses as of September 30, 2023 and December 31, 2022.
34
Page 38
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
i. Financial assets (continued)
Subsequent measurement (continued)
(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
PSAK 71 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 recognized 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. The Group’s financial assets at this category consists of long-
term investment in financial instruments.
(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 (“SPPI”) are classified and measured at FVTPL,
irrespective of the business model. Notwithstanding the criteria for debt instruments to be
classified at amortized 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 recognized in the statement of profit or loss. The Group’s
financial assets at FVTPL consists of other long-term investment in financial instruments
and other current financial assets.
Expected credit losses (“ECL”)
The Group recognizes 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.
35
Page 39
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
i. Financial assets (continued)
Expected credit losses (“ECL”) (continued)
ECL are recognized 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
recognizes a loss allowance based on lifetime ECL at each reporting date. The Group has
established a provision model that is based on its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and the economic environment.
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 are 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
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings, payables or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of loan and borrowings
and payables, net of directly attributable transaction costs.
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, customer
deposits, interest-bearing loans, and lease liabilities. Interest-bearing loans consist of short-
term bank loans, two-step loans, bonds, long-term bank loans, and other borrowings.
36
Page 40
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
u. Financial instruments (continued)
ii. Financial liabilities (continued)
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. Separated embedded
derivatives are also classified as held for trading unless they are designated as effective
hedging instruments. Gains or losses on liabilities held for trading are recognized in 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 PSAK 71 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 amortized cost using the EIR
method. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization process. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortization is included 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
recognized amounts and there is an intention to settle them on a net basis, or realize the assets
and settle the liabilities simultaneously. The right of offset must not be contingent on a future
event and must be legally enforceable in all of the following circumstances:
(a) the normal course of business;
(b) the event of default; and
(c) the event of insolvency or bankruptcy of the Group and all of the counterparties.
iv. Derecognition of financial instruments
The Group derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire, or when the Group transfers substantially all the risks and rewards
of ownership of the financial asset.
The Group derecognizes a financial liability when the obligation specified in the contract is
discharged or cancelled or has expired.
37
Page 41
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
v. Treasury stock
Reacquired Company’s 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.
Any difference between the carrying amount and consideration from future re-sale of treasury
stocks, is recognized as part of additional paid-in capital in the equity.
w. Dividends
Dividend for distribution to the stockholders is recognized as a liability in the consolidated financial
statements in the year in which the dividend is approved by the stockholders. The interim dividend
is recognized as a liability based on the Board of Directors’ decision supported by the approval
from the Board of Commissioners.
x. Basic and diluted earnings per share and earnings per ADS
Basic earnings per share is computed by dividing profit for the year attributable to owners of the
parent company by the weighted average number of shares outstanding during the year. Income
per ADS is computed by multiplying the basic earnings per share by 100, the number of shares
represented by each ADS.
The Company does not have potentially dilutive financial instruments.
y. Segment information
The Group's segment information is presented based upon identified operating segments. An
operating segment is a component of an entity:
i. 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);
ii. 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
iii. for which discrete financial information is available.
z. Provisions
Provisions are recognized when the Group has present obligations (legal or constructive) arising
from past events and it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligations and the amount can be measured reliably.
Provisions for onerous contracts are recognized when the contract becomes onerous for the lower
of the cost of fulfilling the contract and any compensation or penalties arising from failure to fulfill
the contract.
aa. Impairment of non-financial assets
At the end of each reporting period, the Group assesses whether there is an indication that an non-
financial assets may be impaired. These assets include property and equipment, current assets,
and other non-current assets, including intangible assets. 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”).
38
Page 42
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
aa. Impairment of non-financial assets (continued)
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 transaction prices 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 multiple
valuations or other available fair value indicators.
Impairment losses of continuing operations are recognized in the consolidated statements of profit
or loss and other comprehensive income.
At the end of each reporting period, the Group assesses whether there is any indication that
previously recognized impairment losses for an asset, other than goodwill, may no longer exist or
may have decreased. If such indication exists, the recoverable amount is estimated. A previously
recognized impairment loss for an asset, other than goodwill, is reversed only if there has been a
change in the assumptions used to determine the asset’s recoverable amount since the last
impairment loss was recognized. The reversal is limited such that the carrying amount of the asset
does not exceed its recoverable amount, nor exceeds the carrying amount that would have been
determined, net of depreciation, had no impairment been recognized for the asset in prior periods.
Reversal of an impairment loss is recognized in the consolidated statement of profit or loss and
other comprehensive income.
Goodwill is tested for impairment annually and when circumstances indicate that the carrying value
may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of
each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the
CGU is less than its carrying amount, an impairment loss is recognized. Impairment loss relating
to goodwill can not be reversed in future periods.
ab. Current and non-current classifications
The Group presents assets and liabilities in the statement of financial position based on current
and non-current classification. An asset is presented as current when it is:
i. expected to be realized or intended to be sold, or consumed in the normal operating cycle;
ii. held primarily for the purpose of trading; or
iii. expected to be realized within twelve months after the reporting period; or
iv. cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period.
Assets which do not meet above criteria are classified as non-current assets.
A liability is presented as current when:
i. it is expected to be settled in the normal operating cycle;
ii. it is held primarily for the purpose of trading;
iii. it is due to be settled within twelve months after reporting period;
iv. there is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.
The terms of liability that could, at the option of counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.
Liabilities which do not meet above criteria are classified as long-term liabilities.
Deffered tax assets and liabilities are classified as non-current assets and liabilities.
39
Page 43
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
ac. Significant accounting judgements, estimates and assumptions
The preparation of the Group's consolidated financial statements requires management to make
judgements, estimates, and assumptions that affect the reporting amounts of revenue, expenses,
assets and liabilities, and the accompanying disclosures, and disclosures of contingent liabilities,
at the end of the reporting period.
Uncertainty about these assumptions and estimates can produce results that require a material
adjustment to the carrying amounts of assets and liabilities affected in the coming periods.
i. Judgements
The following judgements were made by management in applying the Group's accounting
policies that have the most significant influence on the amounts recognized in the consolidated
financial statements:
Income taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax
laws, and the amount and timing of future taxable income could necessitate future adjustments
to tax income and expense already recorded. Judgement is also involved in determining the
provision for corporate income tax. There are certain transactions and computation for which
the ultimate tax determination is uncertain during the ordinary course of business.
The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether
additional taxes will be due. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the current and deferred
income tax assets and liabilities in the year in which such determination is made.
ii. Estimates and assumptions
Estimates and assumption 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.
(a) 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 (“ROI”). 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.
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 30 and 31.
40
Page 44
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
ac. Significant accounting judgements, estimates and assumptions (continued)
ii. Estimates and assumptions (continued)
(b) 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.
In 2021, the Company accelerated the useful lives of Multi-Service Access Node (“MSAN”)
assets until 2022. In 2022, the Group changed the estimated useful lives of towers in
Indonesia (Note 11).
(c) Determining the lease term of contracts with renewal and termination options - Group as
lessee
The Group determines the lease term as the non-cancellable term of the lease, together
with any periods covered by an option to extend the lease if it is reasonably certain to be
exercised, or any periods covered by an option to terminate the lease, if it is reasonably
certain not to be exercised.
The Group has several lease contracts that include extension and termination options. The
Group applies judgement in evaluating whether it is reasonably certain whether or not to
exercise the option to renew or terminate the lease. That is, it considers all relevant factors
that create an economic incentive for it to exercise either the renewal or termination. After
the commencement date, the Group reassesses the lease term if there is a significant event
or change in circumstances that is within its control and affects its ability to exercise or not
to exercise the option to renew or to terminate.
(d) Allowance for expected credit losses for financial assets
For trade receivables and contract assets, the Group applies a simplified approach in
calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead
recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has
established an allowance for expected credit losses methodology that is based on its
historical credit loss experience, adjusted for forward-looking factors specific to the debtors,
and the economic environment.
For term deposits and debt instruments at FVTOCI, the Group applies the low credit risk
simplification. At every reporting date, the Group evaluates whether the 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 internal 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.
41
Page 45
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
ac. Significant accounting judgements, estimates and assumptions (continued)
ii. Estimates and assumptions (continued)
(d) Allowance for expected credit losses for financial assets (continued)
The Group assesses whether there is objective evidence that other receivables or other
financial assets have been impaired at the end of each reporting period. Allowance for
expected credit losses of receivables is calculated based on a review of the current status
of existing receivables and historical collection experience. Such allowances are adjusted
periodically to reflect the actual and anticipated experience. Details of the nature and
carrying amounts of allowance for expected credit losses of receivables are disclosed in
Note 5.
The Group also closely monitors the changes in shared risk characteristics of certain
account receivables by evaluating the customer segmentations portfolios which the
respective customers might engage in business industries, or locate in areas, which have
become affected, or are more prone to be affected, by the pandemic. The Group has
reassessed the model used to calculate ECLs based on the latest reasonable and
supportable data to better reflect the current change in circumstances. Methods and
approaches will continue to be monitored and updated if additional reasonable and
supportable data and information are available; including forward-looking information and
other input in the future.
(e) Revenue
(i) Critical judgements in determining the performance obligation, timing of revenue
recognition and revenue classification
The Group provides information technology services 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,
the Group also provides multiple standard products as bundling product in contract with
customer. Significant judgement is required in determining the number and nature of
performance obligations promised to customers in those contracts. The number and
nature of 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. When a contract consisting of several goods and/or service is assessed
to have one performance obligation, 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 have one
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 and information technology services.
(ii) 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. The Group determines the appropriate margin based on
historical achievement.
42
Page 46
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF ACCOUNTING POLICIES (continued)
ac. Significant accounting judgements, estimates and assumptions (continued)
ii. Estimates and assumptions (continued)
(f) Test for impairment of non-current assets and goodwill
The application of the acquisition method in a business combination requires the use of
accounting estimates in allocating the purchase price to the fair market value of the assets
and liabilities acquired, including intangible assets. Certain business acquisitions by the
Group resulted goodwill, which is not amortized but is tested for impairment annually and
every indication of impairment exists.
The calculation of future cash flows in determining the fair value of property and equipment
and other non-current assets of the acquired entity at the acquisition date involves
significant estimation. Although management believes that the assumptions used are
appropriate, significant changes to those assumptions can materially affect the evaluation
of recoverable amounts and may result in impairment according to PSAK 48: Impairment
of Assets.
(g) Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statement of
financial position cannot be measured based on quoted prices in active markets, their fair
value is measured using valuation techniques including the discounted cash flow (“DCF”)
model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions relating to these factors could affect the reported fair value of
financial instruments
(h) Acquisition
The Group evaluates each acquisition transaction to determine whether it will be treated
as an asset acquisition or business combination. For transactions that are treated as an
asset acquisition, the purchase price is allocated to the assets obtained, without the
recognition of goodwill. For acquisitions that meet the business combination definition,
the Group applies the accounting for business acquisiton method for assets acquired and
liabilities assumed which are recorded at fair value at the acquisition date, and the results
of operations are included with the Group's results from the date of each acquisition.
Any excess from the purchase price paid for the amount recognized for assets acquired
and liabilities incurred is recorded as goodwill. The Group continues to evaluate
acquisitions that are counted as a business combination for a period not exceeding one
year after the applicable acquisition date of each transaction to determine whether
additional adjustments are needed to allocate the purchase price paid for the assets
acquired and liabilities assumed. The fair value of assets acquired and liabilities incurred
are usually determined using either an estimated replacement cost or a discounted cash
flow valuation method. When determining the fair value of tangible assets acquired, the
Group estimates the cost of replacing assets with new assets by considering factors such
as the age, condition, and economic useful lives of the assets. When determining the fair
value of the intangible assets obtained, the Group estimates the applicable discount rate
and the time and amount of future cash flows, including the rates and terms for the
extension and reduction.
rienc
43
Page 47
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS - NET
September 30, 2023 December 31, 2022
Balance Balance
Currency Rupiah Currency Rupiah
Currency (in million) equivalent (in million) equivalent
Cash on hand Rp - 47 - 11
Cash in banks
Related parties
PT Bank Mandiri (Persero) Tbk. (“Bank Mandiri”) Rp - 4,014 - 6,413
US$ 42 645 49 758
EUR 2 36 2 34
HKD 2 4 3 5
JPY 6 1 6 1
AU$ 0 0 0 0
PT Bank Negara Indonesia (Persero) Tbk. (“BNI”) Rp - 3,035 - 4,298
US$ 2 29 7 111
SGD 0 0 0 0
EUR 0 0 0 0
PT Bank Tabungan Negara (Persero) Tbk. ("BTN") Rp - 2,929 - 2,713
PT Bank Rakyat Indonesia (Persero) Tbk. (“BRI”) Rp - 1,001 - 2,691
US$ 1 13 11 179
TWD 0 0 - -
Others (each below Rp100 billion) Rp - 47 - 230
US$ - - 0 0
Sub-total 11,754 17,433
Third parties
The Hongkong and Shanghai Banking Corporation Ltd.
("HSBC Hongkong") US$ 55 855 55 861
HKD 26 51 5 10
PT Bank CIMB Niaga Tbk. (”Bank CIMB Niaga”) Rp - 860 - 1,379
US$ 1 8 0 5
PT Bank Central Asia Tbk. (“BCA”) Rp - 175 - 80
US$ 0 3 0 3
DBS Bank (Hong Kong) Ltd. ("DBS Hong Kong") US$ 20 308 - -
HKD 0 0 0 0
Standard Chartered Bank (“SCB”) US$ 8 120 16 245
SGD 7 80 5 53
Bank Pembangunan Daerah Tbk. ("BPD") Rp - 129 - 75
Others (each below Rp100 billion) Rp - 174 - 662
US$ 14 213 17 267
TWD 36 17 58 29
MYR 3 8 5 17
AU$ 2 19 2 23
MMK 352 3 386 3
SGD 2 21 2 29
EUR 0 0 0 0
Sub-total 3,044 3,741
Total of cash in banks 14,798 21,174
Time deposits
Related parties
BTN Rp - 1,330 - 1,655
US$ 1 14 - -
BRI Rp - 1,058 - 845
US$ 16 240 21 319
PT Bank Syariah Indonesia Tbk. (“BSI”) Rp - 1,143 - 1,220
BNI Rp - 717 - 378
US$ 22 343 9 145
Bank Mandiri Rp - 233 - 844
US$ 11 174 31 489
Sub-total 5,252 5,895
44
Page 48
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS - NET (continued)
September 30, 2023 December 31, 2022
Balance Balance
Currency Rupiah Currency Rupiah
Currency (in million) equivalent (in million) equivalent
Time deposits (continued)
Third parties
PT Bank Pembangunan Daerah Jawa Barat dan Banten
Tbk. (“BJB”) Rp - 1.129 - 1.423
BPD Rp - 1.125 - 25
PT Bank Maybank Indonesia Tbk. ("Maybank") Rp - 385 - 220
US$ 32 490 14 224
MYR - - 2 6
PT Bank Mega Tbk. (“Bank Mega”) Rp - 809 - 1.986
US$ 5 78 12 181
Bank CIMB Niaga Rp - 704 - 122
US$ 2 31 11 168
PT Bank Danamon Indonesia Tbk. (“Bank Danamon”) Rp - 325 - 40
US$ 11 170 9 133
Rp - 200 - 295
PT Bank Muamalat Indonesia Tbk.
US$ 2 26 - -
MYR 3 8 - -
PT Bank Tabungan Pensiunan Nasional Syariah Tbk.
("BTPN Syariah") Rp - 105 - -
Others (each below Rp100 billion) Rp - 116 - 45
US$ 7 108 - -
Sub-total 5,809 4,868
Total of time deposits 11,061 10,763
Allowance for credit expectation losses (1) (1)
Total 25,905 31,947
Interest rates per annum on time deposits are as follows:
September 30, 2023 December 31, 2022
Rupiah 1.95% - 6.50% 1.95% - 6.50%
Foreign currency 2.50% - 5.05% 0.25% - 4.05%
The Group placed the majority of its cash and cash equivalents in state-owned (related party) 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.
45
Page 49
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
4. OTHER CURRENT FINANCIAL ASSETS
September 30, 2023 December 31, 2022
Balance Balance
Foreign Foreign
currency Rupiah currency Rupiah
Currency (in millions) equivalent (in millions) equivalent
Time deposit
Related parties
BRI Rp - 317 - 50
BNI Rp - 159 - 80
Bank Mandiri Rp - 140 - 10
US$ 5 78 5 79
BSI Rp - 178 - 100
Others (each below Rp100 billion) Rp - 60 - -
Third parties
United Overseas Bank Limited Singapore
(“UOB Singapore”) US$ 13 187 12 182
Standard Chartered Bank (Singapore) Limited
(“SCB Singapore”) US$ 7 101 7 102
Others (each below Rp100 billion) Rp - - - 18
US$ 2 32 2 32
Total time deposits 1,252 653
Escrow accounts Rp - 214 - 383
US$ 1 11 2 30
Total escrow accounts 225 413
Mutual funds
Related parties
Others (each below Rp100 billion) Rp - 84 - 81
Third parties
PT Henan Putihrai Asset Management
(“HPAM”) Rp - 212 - 200
Total mutual funds 296 281
Others (each below Rp100 billion) Rp - 0 - 0
US$ 0 0 0 2
MYR 0 0 0 0
Total others 0 2
Allowance for expected credit losses (0) (0)
Total 1,773 1,349
The time deposits have maturities of more than three months but not more than one year, with interest
rates as follows:
September 30, 2023 December 31, 2022
Rupiah 2.50% - 5.85% 2.50% - 5.00%
Foreign currency 1.95% - 5.85% 1.95% - 5.06%
46
Page 50
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES - NET
Trade receivables arise from services provided to both retail and non-retail customers, with details as
follows:
a. By debtor
(i) Related parties
September 30, 2023 December 31, 2022
State-owned enterprises 2,006 1,985
PT Indonusa Telemedia ("Indonusa") 386 385
Indosat 310 175
Others (each below Rp100 billion) 183 156
Total 2,885 2,701
Allowance for expected credit losses (1,203) (1,081)
Net 1,682 1,620
(ii) Third parties
September 30, 2023 December 31, 2022
Individual and business subscribers 13,660 12,517
Overseas international carriers 1,154 984
Total 14,814 13,501
Allowance for expected credit losses (6,601) (6,487)
Net 8,213 7,014
b. By age
(i) Related parties
September 30, 2023 December 31, 2022
Up to 3 months 1,609 1,522
3 to 6 months 211 183
More than 6 months 1,065 996
Total 2,885 2,701
Allowance for expected credit losses (1,203) (1,081)
Net 1,682 1,620
(ii) Third parties
September 30, 2023 December 31, 2022
Up to 3 months 8,279 7,116
3 to 6 months 1,115 481
More than 6 months 5,420 5,904
Total 14,814 13,501
Allowance for expected credit losses (6,601) (6,487)
Net 8,213 7,014
47
Page 51
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES - NET (continued)
b. By age (continued)
(iii) Aging of total trade receivables
September 30, 2023 December 31, 2022
Allowance for Expected Allowance for Expected
expected credit expected credit
Gross credit losses loss rate Gross credit losses loss rate
Not past due 6,452 709 11.0% 6,964 399 5.7%
Past due up to 3 months 3,436 733 21.3% 1,674 349 20.8%
Past due more than 3 to 6 months 1,326 447 33.7% 664 222 33.4%
Past due more than 6 months 6,485 5,915 91.2% 6,900 6,598 95.6%
Total 17,699 7,804 16,202 7,568
The Group has made allowance for expected credit losses based on the collective assessment
of historical impairment rates and individual assessment of its customers’ credit history,
adjusted for forward-looking factors specific from the customers 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 September 30, 2023 and December 31,2022,
the carrying amounts of trade receivables of the Group considered past due but not impaired
amounted to Rp4,152 billion and Rp2,069 billion, respectively. Management believes that
receivables past due but not impaired, along with trade receivables that are neither past due
nor impaired, are due from customers with good credit history and are expected to be
recoverable.
c. By currency
(i) Related parties
September 30, 2023 December 31, 2022
Rupiah 2,880 2,694
U.S. Dollar 5 7
Total 2,885 2,701
Allowance for expected credit losses (1,203) (1,081)
Net 1,682 1,620
(ii) Third parties
September 30, 2023 December 31, 2022
Rupiah 13,088 12,020
U.S. Dollar 1,539 1,352
Singapore Dollar 146 89
Others (each below Rp100 billion) 41 40
Total 14,814 13,501
Allowance for expected credit losses (6,601) (6,487)
Net 8,213 7,014
d. Movements in the allowance for expected credit losses
September 30, 2023 December 31, 2022
Beginning balance 7,568 7,802
Allowance for expected credit losses 638 567
Receivables written off (402) (801)
Ending balance 7,804 7,568
48
Page 52
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES - NET (continued)
d. Movements in the allowance for expected credit losses (continued)
The receivables written-off relate to both related party and third party trade receivables.
Management believes that the allowance for expected credit losses of trade receivables is
adequate to cover losses on uncollectible trade receivables.
As of September 30, 2023 and December 31, 2022, certain trade receivables of the subsidiaries
amounting to Rp947 billion and Rp1,129 billion, respectively, have been pledged as collateral under
lending agreements (Notes 18a and 19c).
6. CONTRACT ASSETS - NET
September 30, 2023 December 31, 2022
Contract assets 2,638 2,610
Allowance for expected credit losses (167) (119)
Net 2.471 2,491
Current portion (2.457) (2,457)
Non-current portion 14 34
Management believes that the allowance for expected credit losses of contract assets is adequate to
cover losses on uncollectible contract assets.
Refer to Note 32 for details of related party transactions.
7. INVENTORIES - NET
Inventories, all recognize at net realizable value, consist of:
September 30, 2023 December 31, 2022
SIM cards and prepaid vouchers 800 321
Components 482 588
Others (each below Rp100 billion) 253 294
Total 1,535 1,203
Provision for obsolescence (60) (59)
Net 1,475 1,144
Management believes the provision is adequate to cover losses from the decline in inventory value
due to obsolescence.
The inventories recognized as expenses included in operations, maintenance and telecommunication
service expenses in September 30, 2023 and 2022 amounted to Rp553 billion and Rp539 billion,
respectively (Note 25).
There were no inventories have been pledged as collateral under lending agreements as of
September 30, 2023 and December 31, 2022, respectively.
As of September 30, 2023 and December 31, 2022, modules (part of property and equipment) and
components held by the Group with book value amounting to Rp86 billion and Rp94 billion,
respectively, have been insured against fire, theft, and other specific risks. The total sum insured as
of September 30, 2023 and December 31, 2022 amounted to Rp94 and Rp111 billion, respectively.
Management believes the insurance coverage is adequate to cover potential losses of inventories
arising from the insured risks.
49
Page 53
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
8. OTHER CURRENT ASSETS
The breakdown of other current assets are as follows:
September 30, 2023 December 31, 2022
Prepaid frequency license fees - current
portion (Note 35c.i) 2,676 5,289
Advances 1,207 679
Prepaid salaries 402 218
Others (each below Rp100 billion) 837 574
Total 5,122 6,760
9. CONTRACT COST
Movements of contract costs are as follows:
September 30, 2023
Cost to Cost to
Total
obtain fulfill
At January 1, 2023 1,554 858 2,412
Amortization during the year (288) (250) (538)
Addition current year 335 44 379
At September 30, 2023 1,601 652 2,253
Current (380) (354) (734)
Non-current 1,221 298 1,519
December 31, 2022
Cost to Cost to
Total
obtain fulfill
At January 1, 2022 1,532 732 2,264
Amortization during the year (338) (514) (852)
Addition current year 360 640 1,000
At December 31, 2022 1,554 858 2,412
Current (354) (317) (671)
Non-current 1,200 541 1,741
There is no provision for impairment of contract cost as of September 30, 2023 and December 31,
2022, respectively.
50
Page 54
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
10. LONG-TERM INVESTMENTS
The breakdown of long-term investments are as follows:
September 30, 2023 December 31, 2022
Financial instruments
At fair value through profit or loss:
Equity 7,616 7,624
Convertible bonds 964 884
At fair value through other comprehensive income:
Equity 22 22
8,602 8,530
Associates
PT Jalin Pembayaran Nusantara ("Jalin") 104 115
Others (each below Rp100 billion) 8 8
112 123
Total long-term investments 8,714 8,653
a. Long-term investment in financial instruments
Investments in equity at fair value through profit or loss are long-term investments in the form of
shares in various start-up companies engaged in information and technology. The Group does not
have significant influence in these start-up companies.
Investments in equity at fair value through profit or loss include:
(i) Investment in PT GoTo Gojek Tokopedia Tbk. (“GOTO”) by Telkomsel. As of September 30,
2023, Telkomsel assessed the fair value of the investment in GOTO was Rp85 per share. The
total unrealized loss from changes in fair value of Telkomsel’s investment in GOTO as of
September 30, 2023, amounted to Rp142 billion and was presented as unrealized loss on
changes in fair value of investments in the consolidated statement of profit or loss.
(ii) Investments by MDI in several start-up entities engaged in the information and technology
sector. The additional investments during the period by MDI amounted to Rp213 billion.
Investments in convertible bonds at fair value through profit or loss represent long-term
investments owned by Telkomsel and MDI in the form of convertible bonds in various start-up
companies engaged in information and technology, which will be immediately converted into
shares when they mature.
b. Long-term investment in associates
Investment in others which include investment in:
(i) Jalin was previously a subsidiary, on June 19, 2019, the Group sold of its 67.00% ownership,
thus ownership in Jalin is 33.00%.
(ii) PT Fintek Karya Nusantara (“Finarya”) of 24.83%. Finarya was previously a subsidiary of
Telkomsel. In 2019, there was an increase in issued and paid up capital made by various
investors hence Finarya became associate entity of Telkomsel.
(iii) PT Omni Inovasi Indonesia Tbk. (“Omni Inovasi Indonesia”) (previously PT Tiphone Mobile
Indonesia Tbk.) of 24.00%. Since 2019, management has recognized full impairment of
investment in PT Omni Inovasi Indonesia Tbk.
The unrecognized share in losses in long-term investment in associates cumulatively as of
September 30, 2023 and 2022 was amounting to Rp349 billion and Rp415 billion, respectively.
51
Page 55
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT
The details of property and equipment are as follows:
December 31, Reclassifications/ September 30,
2022 Additions Deductions Translations 2023
At cost:
Directly acquired assets
Land rights 1,838 27 - 76 1,941
Buildings 18,947 231 (5) 443 19,616
Leasehold improvements 1,571 35 (16) (2) 1,588
Switching equipment 20,083 314 (56) 650 20,991
Telegraph, telex, and data communication
equipment 1,583 - - - 1,583
Transmission installation and equipment 171,106 3,705 (1,895) 5,991 178,907
Satellite, earth station, and equipment 10,804 55 - (20) 10,839
Cable network 74,695 3,418 (3) 1,213 79,323
Power supply 23,276 423 (270) 280 23,709
Data processing equipment 20,954 464 (333) 830 21,915
Other telecommunication peripherals 10,402 448 - 47 10,897
Office equipment 2,625 45 (30) (92) 2,548
Vehicles 605 47 (36) - 616
Other equipment 51 1 - 1 53
Property under construction 4,598 12,871 - (10,458) 7,011
Total 363,138 22,084 (2,644) (1,041) 381,537
Accumulated depreciation and
impairment losses:
Directly acquired assets
Buildings 6,228 473 - (35) 6,666
Leasehold improvements 1,207 118 (16) (30) 1,279
Switching equipment 14,100 1,500 (55) 145 15,690
Telegraph, telex, and data communication
equipment 1,582 - - - 1,582
Transmission installation and equipment 97,335 8,942 (1,707) (11) 104,559
Satellite, earth station, and equipment 6,041 515 - (32) 6,524
Cable network 22,510 2,381 (3) 348 25,236
Power supply 16,890 1,376 (261) (524) 17,481
Data processing equipment 15,490 1,506 (332) (260) 16,404
Other telecommunication peripherals 6,067 1,269 - (24) 7,312
Office equipment 2,073 204 (24) (194) 2,059
Vehicles 242 39 (21) - 260
Other equipment 44 2 - 1 47
Total 189,809 18,325 (2,419) (616) 205,099
Net book value 173,329 176,438
52
Page 56
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT (continued)
The details of property and equipment are as follows (continued):
December 31, Reclassifications/ December 31,
2021 Additions Deductions Translations 2022
At cost:
Directly acquired assets
Land rights 1,821 10 - 7 1,838
Buildings 17,296 778 (1) 874 18,947
Leasehold improvements 1,477 80 (86) 100 1,571
Switching equipment 18,324 1,066 (130) 823 20,083
Telegraph, telex, and data communication
equipment 1,583 - - - 1,583
Transmission installation and equipment 165,621 4,494 (9,501) 10,492 171,106
Satellite, earth station, and equipment 10,528 155 (5) 126 10,804
Cable network 67,559 7,807 (9) (662) 74,695
Power supply 22,035 433 (719) 1,527 23,276
Data processing equipment 19,258 877 (390) 1,209 20,954
Other telecommunication peripherals 9,121 1,261 - 20 10,402
Office equipment 2,352 157 (85) 201 2,625
Vehicles 537 100 (165) 133 605
Other equipment 47 2 (3) 5 51
Property under construction 2,950 16,936 - (15,288) 4,598
Total 340,509 34,156 (11,094) (433) 363,138
Accumulated depreciation and
impairment losses:
Directly acquired assets
Buildings 5,537 632 (1) 60 6,228
Leasehold improvements 1,163 130 (86) - 1,207
Switching equipment 12,225 1,985 (127) 17 14,100
Telegraph, telex, and data communication
equipment 1,582 - - - 1,582
Transmission installation and equipment 94,532 12,087 (9,362) 78 97,335
Satellite, earth station, and equipment 5,199 830 (5) 17 6,041
Cable network 18,735 4,388 (9) (604) 22,510
Power supply 15,874 1,699 (712) 29 16,890
Data processing equipment 14,130 1,806 (388) (58) 15,490
Other telecommunication peripherals 4,330 1,717 - 20 6,067
Office equipment 1,866 261 (79) 25 2,073
Vehicles 270 38 (135) 69 242
Other equipment 40 3 (2) 3 44
Total 175,483 25,576 (10,906) (344) 189,809
Net book value 165,026 173,329
a. Gain on sale of property and equipment
2023 2022
Proceeds from sale of property and equipment 83 391
Net book value (21) (123)
Gain on disposal or sale of property and equipment 62 268
b. Others
(i) During 2022, 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 December 31, 2022.
(ii) Interest capitalized to property under construction amounted to Rp95 billion and
Rp37 billion for the nine months period ended September 30, 2023 and 2022, respectively.
The capitalization rate used to determine the amount of borrowing costs eligible for
capitalization ranged from 2.50% to 8.20% and 5.49% to 6.30% for the nine months period
ended September 30, 2023 and 2022, respectively.
(iii) No foreign exchange loss was capitalized as part of property under construction for the nine
months period September 30, 2023 and the year ended December 31, 2022.
53
Page 57
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT (continued)
b. Others (continued)
(iv) During the nine months period ended September 30, 2023 and 2022, the Group obtained
proceeds from the insurance claim on lost and broken property and equipment, with a total
value of Rp160 billion and Rp267 billion, respectively, and were recorded as part of “Other
income - net” in the consolidated statements of profit or loss and other comprehensive
income. During September 30, 2023 and 2022, the net carrying values of those assets of
Rp148 billion and Rp244 billion, respectively, were charged to the consolidated statements
of profit or loss and other comprehensive income.
(v) In 2022, the estimated useful lives of Group towers were changed from 30 to 40 years.
The impact of reduction in the depreciation expense for the year ended December 31, 2022
and the estimate for the year ended 2023 amounted to Rp93 billion and Rp373 billion,
respectively. Towers are presented as part of transmission installation and equipment.
(vi) As of September 30, 2023 and December 31, 2022, the equipment units of Telkomsel with
the carrying amount of Rp6 billion, respectively, to be exchanged, and therefore the
equipment units were reclassified as assets held for sale in the consolidated statement of
financial position. As of September 30, 2023 and December 31, 2022, the equipment units
of Telkomsel with the net carrying amount of RpNil and Rp909 billion, respectively, had been
exchanged with equipment units of PT ZTE Indonesia. There is no provision for impairment
of assets held for sale as of September 30, 2023 and December 31, 2022.
(vii) In 2021, the Company decided to discontinue the use of MSAN assets and accelerate the
depreciation of the MSAN assets, which have been fully depreciated in 2022. The impact of
accelerated depreciation of MSAN assets for the year ended December 31, 2022 amounted
to Rp1,494 billion. MSAN assets are presented as part of cable network.
(viii) The Group owns several pieces of land located throughout Indonesia with Right to Build
(“Hak Guna Bangunan” or “HGB”) for a period of 8-50 years which will expire between 2023
and 2071. Management believes that there will be no issue in obtaining the extension of the
land rights when they expire.
(ix) As of September 30, 2023 and December 31, 2022, the Group’s property and equipment
excluding land rights, with net carrying amount of Rp168,072 billion and Rp172,112 billion,
respectively, were insured againts fire, theft, earthquake and other specified risks, including
business interruption, under blanket policies totalling Rp33,040 billion and Rp36,319 billion,
HK10 million, SG$373 million, and MYRNil and MYR54 million, respectively, and first loss
basis amounted to Rp2,750 billion, respectively. Management believes that the insurance
coverage is adequate to cover potential lossess from the insured risks.
(x) As of September 30, 2023 and December 31, 2022, the percentage of completion of property
under construction was approximately 85.23% and 55.91% respectively, of the total contract
value, with estimated dates of completion until December 2025 and August 2025,
respectively. The balance of property under construction mainly consist 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.
(xi) As of September 30, 2023 and December 31, 2022, all assets owned by the Company have
been pledged as collateral for bonds (Note 19b) while certain property and equipment of the
Company’s subsidiaries with gross carrying value amounting to Rp18,306 billion and
Rp18,370 billion, respectively, have been pledged as collateral under lending agreements
(Notes 18a and 19c).
54
Page 58
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT (continued)
b. Others (continued)
(xii) As of September, 2023 and December 31, 2022, the cost of fully depreciated property and
equipment of the Group that are still used in operations amounted to Rp82,585 billion and
Rp67,979 billion, respectively. The Group is currently conducting modernization of network
assets to replace the fully depreciated property and equipment.
(xiii) In 2022, the total fair values of land rights and buildings of the Group amounted to Rp49,014
billion.
12. RIGHT-OF-USE ASSETS
The carrying amounts of right-of-use assets recognized and the movement during the period:
Transmission
installation and
Land rights Buildings equipment Vehicles Others Total
As at January 1, 2022 4,002 729 13,120 410 208 18,469
Additions 1,169 121 8,205 488 23 10,006
Deductions and reclassifications (217) 17 (2,399) (197) 8 (2,788)
Depreciation expense (867) (204) (4,067) (178) (35) (5,351)
As at December 31, 2022 4,087 663 14,859 523 204 20,336
Additions 1,114 126 6,490 120 3 7,853
Deductions and reclassifications (45) (16) (2,849) (16) (0) (2,926)
Depreciation expense (724) (129) (2,717) (161) (24) (3,755)
As at September 30, 2023 4,432 644 15,783 466 183 21,508
The carrying amounts of the lease liabilities and the movements are as follows:
September 30, 2023 December 31, 2022
As at January 1 18,661 16,387
Accretion of interest 703 931
Additions (Note 39a) 7,853 10,006
Deductions (8,336) (8,663)
Balance 18,881 18,661
Current maturities (5,689) (4,925)
Non-current 13,192 13,736
Maturity analysis of lease payments are as follows:
September 30, 2023
Less than 1 year 6,363
1-5 years 8,447
More than 5 years 6,664
Total lease payments 21,474
Interest (2,593)
Net present value of lease payments 18,881
Current maturities (5,689)
Non-current 13,192
55
Page 59
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
12. RIGHT-OF-USE ASSETS (continued)
The Group leases several assets including land rights, building, transmission installation and
equipment, vehicles, and others which used in operations, which generally have lease term between
1 and 33 years.
The Group also has certain leases with lease terms of twelve months or less and low-value leases.
The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for
these leases. There are no lease contracts with variable lease payments.
Detail of expenses related to leases for the nine months period ended September 30, 2023 and 2022
are as follows:
2023 2022
Depreciation expense of right-of-use assets 3,755 4,055
Expense relating to short-term leases 2,202 2,327
Interest expense on lease liabilities 703 666
Expense relating to leases of low-value assets 32 44
13. OTHER NON-CURRENT ASSETS
The breakdown of other non-current assets is as follows:
September 30, 2023 December 31, 2022
Prepaid frequency license fees -
net of current portion (Note 35c.i) 2,085 1,291
Prepaid expenses 1,017 446
Claims for tax refund – net of current portion (Note 27b) 946 621
Advances 352 781
Security deposit 158 144
Others (each below Rp100 billion) 314 340
Total 4,872 3,623
14. INTANGIBLE ASSETS
The details of intangible assets are as follows:
Other intangible
Goodwill Software License assets Total
Gross carrying amount:
Balance, January 1, 2023 1,492 19,779 620 1,491 23,382
Additions - 1,691 26 4 1,721
Deductions - (546) (130) - (676)
Reclassifications/translations - (16) (9) (3) (28)
Balance, September 30, 2023 1,492 20,908 507 1,492 24,399
Accumulated amortization and impairment
losses:
Balance, January 1, 2023 (402) (13,616) (152) (910) (15,080)
Amortization - (1,755) (42) (70) (1,867)
Deductions - 545 2 - 547
Reclassifications/translations - 13 8 3 24
Balance, September 30, 2023 (402) (14,813) (184) (977) (16,376)
Net book value 1,090 6,095 323 515 8,023
56
Page 60
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
14. INTANGIBLE ASSETS (continued)
The details of intangible assets are as follows:
Other intangible
Goodwill Software License assets Total
Gross carrying amount:
Balance, January 1, 2022 1,492 17,458 174 1,512 20,636
Additions - 2,527 440 49 3,016
Deductions - (175) - (70) (245)
Reclassifications/translations - (31) 6 - (25)
Balance, December 31, 2022 1,492 19,779 620 1,491 23,382
Accumulated amortization and
impairment losses:
Balance, January 1, 2022 (402) (11,714) (125) (889) (13,130)
Amortization - (2,063) (26) (91) (2,180)
Deductions - 175 - 70 245
Reclassifications/translations - (14) (1) - (15)
Balance, December 31, 2022 (402) (13,616) (152) (910) (15,080)
Net book value 1,090 6,163 468 581 8,302
(i) Goodwill resulted from the acquisition of Sigma (2008), Admedika (2010), data center PT Bina
Data Mandiri (“BDM”) (2012), Contact Centres Australia Pty. Ltd. (2014), MNDG (2015), Melon
and PT Griya Silkindo Drajatmoerni (“GSDm”) (2016), TSGN and Nutech (2017), SSI, CIP, and
Telin Malaysia (2018), PST (2019), and Digiserve (2021).
(ii) The remaining amortization periods of software for the periods ended September 30, 2023 and
December 31, 2022 ranges from 1-6 years, respectively. The amortization is presented as part of
“Depreciation and amortization expenses” in the consolidated statements of profit or loss and
other comprehensive income.
(iii) As of September 30, 2023 and December 31, 2022, the cost of fully amortized intangible assets
that are still used in operations amounted to Rp10,597 billion and Rp9,640 billion, respectively.
57
Page 61
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
15. TRADE PAYABLES
The breakdown of trade payables is as follows:
September 30, 2023 December 31, 2022
Related parties
Purchases of equipments, materials, and services 217 262
Payables to other telecommunication providers 255 169
Sub-total 472 431
Third parties
Purchases of equipments, materials, and services 9,255 14,453
Payables to other telecommunication providers 2,672 2,231
Radio frequency usage charges, concession fees,
and Universal Service Obligation (“USO”) charges 1,046 1,342
Sub-total 12,973 18,026
Total 13,445 18,457
Trade payables by currency are as follows:
September 30, 2023 December 31, 2022
Rupiah 11,332 16,727
U.S. Dollar 2,041 1,636
Others 72 94
Total 13,445 18,457
Terms and conditions of the above trade payables:
a. The Group’s trade payables are non-interest bearing and are normally settled on 1 year term.
b. Refer to Note 32 for details on related party transactions.
c. Refer to Note 37b.v for the Group’s liquidity risk management.
16. ACCRUED EXPENSES
The breakdown of accrued expenses is as follows:
September 30, 2023 December 31, 2022
Operation, maintenance,
and telecommunication services 7,556 8,183
General, administrative, and marketing expenses 2,758 3,067
Salaries and benefits 2,513 4,014
Interest and bank charges 217 181
Total 13,044 15,445
Refer to Note 32 for details of related party transactions.
58
Page 62
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
17. CONTRACT LIABILITIES
a. Current portion
September 30, 2023 December 31, 2022
Advances from customers for Mobile 3,810 3,577
Advances from customers for WIB 1,221 1,188
Advances from customers for Enterprise 1,103 1,126
Advances from customers for Consumer 240 233
Others (each other below Rp100 billion) 146 171
Total 6,520 6,295
b. Non-current portion
September 30, 2023 December 31, 2022
Advances from customers for Mobile 910 -
Advances from customers for WIB 788 700
Advances from customers for Consumer 724 844
Advances from customers for Enterprise 110 17
Total 2,532 1,561
Refer to Note 32 for details of related party transactions.
18. SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM LOANS AND
OTHER BORROWINGS
a. Short-term bank loans
Outstanding
Lenders September 30, 2023 December 31, 2022
Related parties
Bank Mandiri 3,714 3,483
BNI 1,107 979
Sub-total 4,821 4,462
Third parties
PT Bank HSBC Indonesia ("HSBC") 3,121 1,836
MUFG Bank ("MUFG") 2,009 1,349
Bank of China 1,000 -
PT Bank DBS Indonesia ("DBS") 476 475
UOB Indonesia 350 -
Others (each below Rp100 billion) 19 69
Sub-total 6,975 3,729
Total 11,796 8,191
59
Page 63
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
18. SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM LOANS AND
OTHER BORROWINGS (continued)
a. Short-term bank loans (continued)
Other significant information relating to short-term bank loans as of September 30, 2023 is as
follows:
Total
facility
(in Interest Interest rate per
Borrower Currency billions)* Maturity date rate annum Security**
Mandiri
2021 - 2022 Nutech, Rp 3,100 July 26, 2024 - Monthly 5.85% - 9.00% Trade
Mitratel September 27, 2024 receivables
and property
and equipment
2020 Finnet Rp 500 October 20, 2023 Monthly 1 month None
JIBOR + 1.30%
BNI
2014 - 2017 GSD, Sigmaa Rp 350 November 7, 2023 - Monthly 7.90% - 8.50% Trade
January 9, 2024 receivables
and property
and equipment
2017 - 2021 Metranet, Rp 1,135 February 18, 2024 - Monthly 1 month JIBOR + Trade
Telkom Infra, June 6, 2024 1.75% - 2.50% receivables
Infomediab
HSBC
2014 - 2020 the Company, Rp 1,400 November 17, 2023 - Monthly 5.00% - Trade
Sigmac,f December 31, 2023 Under BLR 7.40% receivables
2018 - 2019 Sigmad, Rp 2,553 December 31, 2023 - Monthly, 1 month None
Metra, March 12, 2024 Quarterly JIBOR + 0.35%
PINS, 3 month
Metranet, JIBOR + 1.00%
Telkomsate,
GSD
MUFG Bank
2018 Telkomsel Rp 1,750 October 31, 2023 Monthly 6.30% None
2018 - 2019 Infomedia, Rp 1,430 October 31, 2023 Monthly 1 month None
Metra, GSD, JIBOR + 0.70%
Telkom Infra
Bank of China
2020 the Company Rp 1,000 October 13, 2023 Quarterly 3 months None
JIBOR - 1.60%
DBS
2016 Sigma USD 0 July 31, 2024 Monthly 5.79% - 6.30% Trade
receivables
2018 Telkom Infra, Rp 475 November 1, 2023 Monthly 1 month None
Infomedia JIBOR + 1.20%
UOB Indonesia
2016 Finnet Rp 500 October 31, 2023 Monthly 1 month None
JIBOR + 1.75%
* In original currency
** Refer to Note 5 and Note 11 for details of trade receivables and property and equipment pledged as collateral.
a
Based on the latest amendment on July 28, 2022 and January 6, 2023.
b
Based on the latest amendment on March 28, 2018 and July 6, 2018.
c
Based on the latest amendment on July 16, 2018, November 17, 2021 and November 7, 2022.
d
Based on the latest amendment on April 23, 2021.
e
Based on the latest amendment on August 10, 2023.
f
Unsettled loan will be automatically extended.
As stated in the agreements, the Group is required to comply with all covenants or restrictions such
as limitation that the Company must have a majority shareholding of at least 51% of the subsidiaries
and maintaining financial ratios. As of September 30, 2023, the Group has complied with all
covenants.
The credit facilities were obtained by the Group for working capital purposes.
60
Page 64
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
18. SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM LOANS AND
OTHER BORROWINGS (continued)
b. Current maturities of long-term loans and other borrowings
Notes September 30, 2023 December 31, 2022
Two-step loans 19a 91 118
Bonds and notes 19b 548 -
Bank loans 19c 10,856 7,788
Other borrowings 19d 482 952
Total 11,977 8,858
19. LONG-TERM LOANS AND OTHER BORROWINGS
Notes September 30, 2023 December 31, 2022
Two-step loans 19a 41 91
Bonds and notes 19b 4,794 4,793
Bank loans 19c 21,510 22,085
Other borrowings 19d - 362
Total 26,345 27,331
Scheduled principal payments as of September 30, 2023 are as follows:
Year
Notes Total 2024 2025 2026 2027 Thereafter
Two-step loans 19a 41 41 - - - -
Bonds and notes 19b 4,794 - 2,099 - - 2,695
Bank loans 19c 21,510 1,512 6,223 5,167 3,229 5,379
Other borrowings 19d - - - - - -
Total 26,345 1,553 8,322 5,167 3,229 8,074
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.
September 30, 2023 December 31, 2022
Outstanding Outstanding
Foreign currency Rupiah Foreign currency Rupiah
Lenders Currency (in millions) equivalent (in millions) equivalent
Overseas banks Yen 1,152 119 1,536 181
Rp - 13 - 28
Total 132 209
Current maturities (Note 18b) (91) (118)
Long-term portion 41 91
Principal payment Interest rate per
Lenders Currency schedule Interest payment period annum
Overseas banks Yen Semi-annually Semi-annually 2.95%
Rp Semi-annually Semi-annually 7.125%
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
until 2024.
61
Page 65
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
a. Two-step loans (continued)
The Company had used all facilities under the two-step loans program since 2008 and the
withdrawal period for the two-step loan has ended.
Under the loan covenants, the Company is required to maintain financial ratios as follows:
i. Projected net revenue to projected debt service ratio should exceed 1.2:1 for the two-step loans
originating from Asian Development Bank (“ADB”).
ii. Internal financing (earnings before depreciation and finance costs) should exceed 20%
compared to annual average capital expenditures for loans originating from the ADB.
As of September 30, 2023, the Company has complied with the above-mentioned ratios.
b. Bonds and notes
Outstanding
Bonds and notes September 30, 2023 December 31, 2022
Bonds
2015
Series A - 2,200
Series B 2,100 2,100
Series C 1,200 1,200
Series D 1,500 1,500
Medium Term Notes ("MTN")
MTN Mitratel 2023 550 -
Total 5,350 7,000
Unamortized debt issuance cost (8) (7)
Long-term portion 5,342 6,993
Current maturities (Note 18b) (548) (2,200)
Long-term portion 4,794 4,793
i. Bonds
2015
Issuance Interest Interest rate
Bonds Principal Issuer Listed on date Maturity date payment 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 11b.xi). The underwriters of the bonds are
PT. Bahana TCW Management Investment (“Bahana TCW”), PT BRI 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 acquisition of some
domestic and international entities.
As of September 30, 2023, the rating of the bonds issued by Pefindo is idAAA (Triple A).
62
Page 66
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
b. Bonds and notes (continued)
i. Bonds (continued)
Based on the Indenture Trusts Agreement, the Company is required to comply with all
covenants or restrictions, including maintaining financial ratios as follows:
(a) Debt to equity ratio should not exceed 2:1.
(b) EBITDA to interest ratio should not be less than 4:1.
(c) Debt service coverage is at least 125%.
As of September 30, 2023, the Company has complied with the above-mentioned ratios.
ii. Notes
On September 26, 2023, Mitratel issued MTN amounting to Rp500 billion which will be used to
support the provision of funds for credit refinancing.
The term of MTN is 370 calendar days after the MTN issuance date with annual interest rate
6.20% which will be paid every 3 months (quarterly). The first MTN interest payment will be
made on December 26, 2023, while the final MTN interest payment as well as the MTN principal
value will be made on October 26, 2024.
Mitratel has engaged PT Bank Mandiri (Persero) Tbk. as trustee who will act as an intermediary
between the company and MTN holders. The issuance of these Medium Term Notes was rated
by PT Pemeringkat Efek Indonesia with idAAA rate.
c. Bank loans
September 30, 2023 December 31, 2022
Outstanding Outstanding
Foreign Foreign
currency Rupiah currency Rupiah
Lenders Currency (in millions) equivalent (in millions) equivalent
Related parties
BNI Rp - 4,455 - 5,472
Bank Mandiri Rp - 3,560 - 4,381
BRI Rp - 1,136 - 1,409
BSI Rp - 512 - 22
Sub-total 9,663 11,284
Third parties
BCA Rp - 10,948 - 9,757
Syndication of banks Rp - 2,500 - 680
USD 10 160 17 265
Bank CIMB Niaga Rp - 2,128 - 2,221
USD 4 60 4 61
DBS Rp - 1,500 - 1,500
Bank Permata Rp - 1,375 - 1,021
Bank of China Rp - 1,400 - 1,000
BJB Rp - 1,000 - -
HSBC Rp - 625 - 750
MUFG Bank Rp - 500 - 500
Bank Danamon Rp - 364 - 455
PT Bank ANZ Indonesia ("Bank ANZ") Rp - 132 - 198
UOB Singapore USD 4 62 13 205
Others (each below Rp100 billion) Rp - 20 - 60
MYR 9 29 10 34
Sub-total 22,803 18,707
Total 32,466 29,991
Unamortized debt issuance cost (100) (118)
32,366 29,873
Current maturities (Note 18b) (10,856) (7,788)
Long-term portion 21,510 22,085
63
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
c. Bank loans (continued)
Other significant information relating to bank loans as of September 30, 2023 is as follows:
Current
Total period
facility payment Principal Interest
(in (in payment payment Interest rate
Borrower Currency billions)* billions)* schedule period per annum Security**
BNI
2018 GSD Rp 182 5 2021 - 2024 Monthly 8.50% Trade
receivables
2013 - 2021 The Rp 9,625 1,010 2018 - 2033 Monthly, 1 month Trade
Company, Quarterly JIBOR + 2.25%; receivables
GSD, TLT, 3 months JIBOR + and
Sigma, 1.70% - 1.85% property
Mitratel and
equipment
Bank Mandiri
2017 - 2023 The Rp 6,893 922 2019 - 2029 Quarterly 3 months JIBOR + None
Company, 1.25% - 1.85%
GSD,
Mitratel,PST
BRI
2017 - 2019 The Rp 2,500 227 2019 - 2026 Quarterly 3 months JIBOR + None
Company 1.70% - 1.85%
BSI
2018 - 2021 SSI, Rp 1,055 509 2019 - 2024 Monthly 5.15% - 7.50% None
Telkomsel
BCA
2020 - 2022 The Rp 6,500 500 2022 - 2030 Monthly, 6.05% - 6.75% None
Company, Quarterly
Telkomsel
2020 - 2022 The Rp 13,986 1,371 2020 - 2030 Quarterly, 3 months JIBOR + Trade
Company, Semi- 1.00% - 1.50% receivables
Mitratel, annually and
PST, GSD property
and
equipment
Syndication
of banks
2022 Mitratel Rp 2,500 2,000 2024 - 2030 Semi- 7.68% None
annually
2018 Telin USD 0 0 2019 - 2025 Semi- 6 months None
annually SOFR + 1.55%
Bank CIMB
Niaga
2019 - 2022 PINS, Rp 2,300 53 2021 - 2029 Quarterly 3 months JIBOR + None
Mitratel 1.30% - 1.425%
2021 - 2022 Telin USD 0 - 2024 - 2030 Semi- 6 months None
annually SOFR + 1.82%
DBS
2021 Mitratel Rp 3,500 - 2023 - 2028 Semi- 3 months Property
annually JIBOR + 1.20% and
equipment
Bank Permata
2020 - 2022 Mitratel Rp 2,000 146 2021 - 2029 Semi- 3 months Property
annually JIBOR + 1.30% and
equipment
64
Page 68
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
c. Bank loans (continued)
Other significant information relating to bank loans as of September 30, 2023 is as follows
(continued):
Current
Total period
facility payment Principal Interest
(in (in payment payment Interest rate
Borrower Currency billions)* billions)* schedule period per annum Security**
Bank of China
2019 Telkomsel Rp 1,400 2,000 2021 - 2023 Quarterly 5.01% None
BJB
2023 Telkomsel Rp 1,000 1,000 2023 - 2023 Monthly 5.90% None
HSBC
2021 Mitratel Rp 750 125 2023 - 2028 Semi- 3 months Property
annually JIBOR + 1.50% and
equipment
MUFG Bank
2021 Mitratel Rp 500 - 2022 - 2028 Quarterly 3 months None
JIBOR + 1.60%
Bank Danamon
2022 Mitratel Rp 636 91 2022 - 2025 Quarterly 3 months None
JIBOR + 1.50%
ANZ
2015 GSD, Rp 440 66 2020 - 2025 Quarterly 3 months JIBOR + None
PINS 1.20% - 1.40%
UOB Singapore
2018 Telin USD 0 0 2019 - 2024 Semi- 6 months None
annually SOFR + 1.25%
* In original currency
** Refer to Note 5 and Note 11 for details of trade receivables and property and equipment pledged as collateral.
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, 2022, the Group obtained waiver from lenders for the non-fulfillment financial ratios
in Metra, Sigma, GSD, and TLT. The waivers from HSBC, Bank DBS, BNI, and Bank Mandiri were
received on December 19, 2022, December 22, 2022, December 23, 2022, December 29, 2022,
and December 26, 2022. As of September 30 2023, the Group has complied with all covenants
regarding these financial ratios, except for Sigma and GSD regarding the debt service coverage
ratio which is still lower than required.
The credit facilities were obtained by the Group for working capital purposes and investment
purposes.
d. Other borrowings
Outstanding
Lenders September 30, 2023 December 31, 2022
PT Sarana Multi Infrastruktur (Persero)
("Sarana Multi Infrastruktur") 482 1,315
Unamortized debt issuance cost 0 (1)
Total 482 1,314
Current maturities (Note 18b) (482) (952)
Long-term portion - 362
65
Page 69
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
d. Other borrowings (continued)
Other significant information relating to other borrowings as of September 30, 2023, is as follows:
Total Current
facility period Principal
(in payment payment Interest rate
Borrower Currency billions) (in billions) schedule per annum Security
Sarana Multi
Infrastruktur
November 14, 2018 The Rp 1,000 110 Semi-annually 3 months None
Company (2019 - 2023) JIBOR + 1.75%
March 29, 2019* The Rp 2,836 700 Semi-annually 3 months None
Company (2020 - 2024) JIBOR + 1.75%
March 29, 2019* Telkomsat Rp 164 24 Semi-annually 3 months None
(2020 - 2024) JIBOR + 1.75%
*
Based on the latest amendment on June 15, 2020.
Under the agreement, the Company and Telkomsat are required to comply with all covenants or
restrictions, including maintaining financial ratios as follows:
(a) Debt to equity ratio should not exceed 2:1
(b) Net debt to EBITDA ratio should not exceed 4:1
(c) Minimal debt service coverage at least 125%
As of September 30, 2023, the Company and Telkomsat have complied with the above-mentioned
ratios.
20. NON-CONTROLLING INTERESTS
The details of non-controlling interests are as follows:
September 30, 2023 December 31, 2022
Non-controlling interests in net assets of subsidiaries:
Telkomsel 9,444 10,535
Mitratel 8,945 9,038
Others 411 431
Total 18,800 20,004
2023 2022
Non-controlling interests in profit (loss)
in current period of subsidiaries:
Telkomsel 5,464 5,876
Mitratel 403 345
Others 23 14
Total 5,890 6,235
66
Page 70
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
20. NON-CONTROLLING INTERESTS (continued)
Material partly-owned subsidiaries
The non-controlling interest which are considered material to the Company are the non-controlling
interest in Telkomsel and Mitratel. On September 30, 2023 and December 31, 2022, the non-
controlling interest in Telkomsel holds 30.10% and 35.00% and Mitratel holds 27.09% and 28.15%,
respectively.
The summarized financial information of Telkomsel and Mitratel are provided below. This information
is based on amounts before intercompany eliminations.
Summarized statements of financial position:
Telkomsel Mitratel
September 30, December 31, September 30, December 31,
2023 2022 2023 2022
Current assets 14,055 16,290 5,182 7,886
Non-current assets 90,117 84,701 51,171 48,185
Current liabilities (39,306) (32,241) (10,698) (10,200)
Non-current liabilities (39,797) (38,708) (12,196) (12,064)
Total equity 25,069 30,042 33,459 33,807
Attributable to:
Owners of the parent company 15,625 19,507 24,514 24,769
Non-controlling interests 9,444 10,535 8,945 9,038
Summarized statements of profit or loss and other comprehensive income:
Telkomsel Mitratel
2023 2022 2023 2022
Revenues 73,193 66,161 6,273 5,607
Operation expenses (50.480) (47,167) (3,614) (3,367)
Other expenses - net (1,682) 1,991 (1,118) (540)
Profit before income tax 21,031 20,985 1,541 1,700
Income tax expense - net (4,656) (4,195) (110) (473)
Profit for the period 16,375 16,790 1,431 1,227
Other comprehensive income (loss) - net - - - -
Total comprehensive income
for the period 16,375 16,790 1,431 1,227
Attributable to
non-controlling interests 5,464 5,876 403 345
Dividends paid to
non-controlling interests 9,267 7,218 484 272
Summarized statements of cash flows:
Telkomsel Mitratel
2023 2022 2023 2022
Operating 31,573 32,300 3,350 2,458
Investing (9,995) (4,599) (3,701) (10,058)
Financing (24,107) (21,828) (3,548) (6,103)
Net increase (decrease) in cash and
cash equivalent (2,529) 5,873 (3,899) (13,703)
CF
67
Page 71
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
21. CAPITAL STOCK
September 30, 2023
Percentage of Total paid-in
Description Number of shares
ownership capital
Series A Dwiwarna share
Government 1 0 0
Series B shares
Government 51,602,353,559 52.09 2,580
The Bank of New York Mellon Corporation* 3,726,418,080 3.77 187
Directors (Note 1b):
Ririek Adriansyah 6,016,355 0 0
Bogi Witjaksono 4,130,400 0 0
Afriwandi 4,172,900 0 0
Heri Supriadi 4,170,400 0 0
FM Venusiana R 7,806,900 0 0
Herlan Wijanarko 4,172,900 0 0
Muhamad Fajrin Rasyid 4,130,400 0 0
Budi Setyawan Wijaya 4,585,400 0 0
Honesti Basyir 370,544 0 0
Commisioner (Note 1b):
Isa Rachmatarwata 1,968,000 0 0
Marcelino Rumambo Pandin 1,968,000 0 0
Ismail 1,968,000 0 0
Arya Mahendra Sinulingga 2,014,800 0 0
Rizal Mallarangeng 1,968,000 0 0
Public (individually less than 5%) 43,684,001,961 44.14 2,186
Total 99,062,216,600 100.00 4,953
December 31, 2022
Percentage of Total paid-in
Description Number of shares
ownership capital
Series A Dwiwarna share
Government 1 0 0
Series B shares
Government 51,602,353,559 52.09 2,580
The Bank of New York Mellon Corporation* 3,889,668,580 3.93 194
Directors (Note 1b):
Ririek Adriansyah 1,156,955 0 0
Budi Setyawan Wijaya 275,000 0 0
Afriwandi 42,500 0 0
Herlan Wijanarko 42,500 0 0
Heri Supriadi 40,000 0 0
Commisioner (Note 1b):
Arya Mahendra Sinulingga 87,500 0 0
Public (individually less than 5%) 43,568,550,005 43.98 2,179
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 cannot
be transferred to any party, and has a veto right in the General Meeting of Stockholders of the
Company with respect to election and removal of the Boards of Commissioners and Directors,
issuance of new shares, and amendments of the Company’s Articles of Association.
22. OTHER EQUITY
September 30, 2023 December 31, 2022
Difference due to acquisition of non-controlling interests
in subsidiaries 8,358 8,358
Translation adjustment 877 910
Effect of change in equity of associated companies 386 386
Unrealized holding gain on available-for-sale securities 6 6
other equity components 37 37
Total 9,664 9,697
68
Page 72
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
23. REVENUES
The Group derives revenues in the following major product lines:
2023 Mobile Consumer Enterprise WIB Others Consolidated revenue
Telephone revenues
Cellular 7,324 - - 122 - 7,446
Fixed lines - 332 447 87 - 866
Total telephone revenues 7,324 332 447 209 - 8,312
Interconnection revenues 219 - - 6,408 - 6,627
Data, internet, and information
technology service revenues
Cellular data and internet 53,529 - - - - 53,529
Internet, data communication, and
information technology services - 76 5,624 1,651 - 7,351
SMS 2,484 - 19 - - 2,503
Others 47 - 1,499 784 157 2,487
Total data, internet, and information
technology service revenues 56,060 76 7,142 2,435 157 65,870
Network revenues 3 - 847 937 - 1,787
Indihome revenues - 19,309 2,476 - - 21,785
Other services
Call center service - - 1,002 - - 1,002
Manage service and terminal - - 597 11 - 608
E-health - - 554 - - 554
E-payment - - 445 - - 445
Others 182 24 1,077 241 636 2,160
Total other services 182 24 3,675 252 636 4,769
Total revenues from
contract with customer 63,788 19,741 14,587 10,241 793 109,150
Revenues from lessor transactions - - - 2,088 - 2,088
Total revenues 63,788 19,741 14,587 12,329 793 111,238
Adjustments and eliminations - 7 10 2 (501)
Total external revenues as reported in
note operating segment 63,788 19,748 14,597 12,331 292
2022 Mobile Consumer Enterprise WIB Others Consolidated revenue
Telephone revenues
Cellular 9,112 - - 16 - 9,128
Fixed lines - 579 458 136 - 1,173
Total telephone revenues 9,112 579 458 152 - 10,301
Interconnection revenues 209 - - 5,939 - 6,148
Data, internet, and information
technology service revenues
Cellular data and internet 50,831 - - - - 50,831
Internet, data communication, and
information technology services - 252 5,715 1,657 - 7,624
SMS 3,326 - 35 - - 3,361
Others 1 - 1,236 634 145 2,016
Total data, internet, and information
technology service revenues 54,158 252 6,986 2,291 145 63,832
Network revenues 3 - 960 665 - 1,628
Indihome revenues - 18,810 2,079 - - 20,889
Other services
Call center service - - 891 26 - 917
Manage service and terminal - - 532 - - 532
E-health - - 481 5 - 486
E-payment 4 - 347 - - 351
Others 1 50 958 246 555 1,810
Total other services 5 50 3,209 277 555 4,096
Total revenues from
contract with customer 63,487 19,691 13,692 9,324 700 106,894
Revenues from lessor transactions - - - 1,980 - 1,980
Total revenues 63,487 19,691 13,692 11,304 700 108,874
Adjustments and eliminations - (11) 6 (1) (526)
Total external revenues as reported in
note operating segment 63,487 19,680 13,698 11,303 174
69
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
23. REVENUES (continued)
Management expects that most of the transaction price allocated to the unsatisfied contracts as of
September 30, 2023 will be recognized as revenue during the next reporting periods. Unsatisfied
performance obligations as of September 30, 2023, which management expect to be realised within
one year is Rp8,119 billion, and more than one year is Rp4,938 billion.
The Group entered into non-cancellable lease agreements as a lessor. The lease agreements cover
leased lines, telecommunication equipment, and land and building. These leases have terms of
between 1 to 10 years. All leases include a clause to enable an upward revision of the rental charge
on an annual basis according to the prevailing market conditions. These lessees are also required to
provide a residual value guaranted on the properties.
There is no revenue from major customers which exceeds 10% of total revenues for the nine months
ended September 30, 2023 and 2022.
Refer to Note 32 for details of related parties transactions.
24. PERSONNEL EXPENSES
The breakdown of personnel expenses is as follows:
2023 2022
Salaries and related benefits 7,188 6,980
Vacation pay, incentives, and other benefits 2,884 2,562
Pension and other post-employment
benefits (Note 30) 1,356 1,331
LSA expense (Note 31) 218 255
Others 32 27
Total 11,678 11,155
Refer to Note 32 for details of related parties transactions.
25. OPERATION, MAINTENANCE, AND TELECOMMUNICATION SERVICE EXPENSES
The breakdown of operation, maintenance, and telecommunication service expenses is as follows:
2023 2022
Operation and maintenance 17,152 16,215
Radio frequency usage charges (Note 35c.i) 5,536 4,835
Concession fees and USO charges (Note 15) 2,068 1,934
Leased lines and Customer Premise Equipment ("CPE") 2,009 2,111
Electricity, gas, and water 619 684
Cost of SIM cards, vouchers, and
sales of peripherals (Note 7) 553 539
Project management 351 335
Vehicles rental and supporting facilities 225 260
Insurance 194 133
Others (each below Rp100 billion) 157 121
Total 28,864 27,167
Refer to Note 32 for details of related parties transactions.
70
Page 74
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
26. GENERAL AND ADMINISTRATIVE EXPENSES
The breakdown of general and administrative expenses is as follows:
2023 2022
General expenses 1,852 1,661
Allowance for expected credit losses 686 921
Professional fees 531 549
Traveling 329 284
Training, education, and recruitment 288 220
Meeting 222 196
Social contribution 164 156
Collection expenses 121 125
Others (each below Rp100 billion) 327 337
Total 4,520 4,449
Refer to Note 32 for details of related parties transactions.
27. TAXATION
a. Prepaid taxes
September 30, 2023 December 31, 2022
The Company:
Income Tax
Article 22 - Witholding tax on goods delivery
and imports - 1
Article 23 - Witholding tax on service delivery - 97
Subsidiaries:
Income Tax
Corporate Income Tax 146 3
Article 4(2) - Final tax 1 24
Article 22 - Witholding tax on goods delivery
and imports 4 -
Article 23 - Witholding tax on service delivery 285 16
VAT 2,348 1,323
Total prepaid taxes 2,784 1,464
Current portion (2,784) (1,464)
Non-current portion (Note 13) - -
b. Claims for tax refund
September 30, 2023 December 31, 2022
The Company
Corporate Income Tax 76 19
Article 21 - Individual income tax 1 3
VAT 163 155
Subsidiaries
Income Tax
Corporate income tax 444 578
Article 23 - Witholding tax on services delivery - 8
VAT 263 238
Total claims for tax refund 947 1,001
Current portion (1) (380)
Non-current portion (Note 13) 946 621
71
Page 75
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
27. TAXATION (continued)
c. Taxes payable
September 30, 2023 December 31, 2022
The Company:
Income taxes
Article 4(2) - Final tax 25 50
Article 21 - Individual income tax 44 79
Article 22 - Withholding tax on goods delivery
and imports 3 7
Article 23 - Withholding tax on services 16 48
Article 25 - Installment of corporate income tax 143 190
Article 26 - Withholding tax on non-resident
income - 5
Article 29 - Corporate income tax - 575
VAT 385 244
VAT - Tax collector 137 286
753 1,484
Subsidiaries:
Income taxes
Article 4(2) - Final tax 223 287
Article 21 - Individual income tax 121 206
Article 22 - Withholding tax on goods delivery
and imports 4 5
Article 23 - Withholding tax on services 74 68
Article 25 - Installment of corporate income tax 576 260
Article 26 - Withholding tax on non-resident
income 229 262
Article 29 - Corporate income tax 1,761 1,782
VAT 291 493
VAT - Tax collector 771 525
4,050 3,888
Total taxes payable 4,803 5,372
d. The components of consolidated income tax expense (benefit) are as follows:
2023 2022
Current
The Company 1,122 1,765
Subsidiaries 5,775 5,513
6,897 7,278
Deferred
The Company 496 (170)
Subsidiaries (500) (727)
(4) (897)
Net income tax expense 6,893 6,381
72
Page 76
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
27. TAXATION (continued)
d. The components of consolidated income tax expense (benefit) are as follows (continued):
The reconciliation between the profit before income tax and the estimated taxable income of
the Company for the nine months period ended September 30, 2023 and 2022 are as follows:
2023 2022
Profit before income tax consolidation 32,282 29,197
Add back consolidation eliminations 18,019 23,425
Consolidated profit before income tax and eliminations 50,301 52,622
Less: profit before income tax of the subsidiaries (29,156) (30,644)
Profit before income tax attributable to the Company
before deduction of income subject to final tax 21,145 21,978
Less: income subject to final tax (436) (303)
Profit before income tax attributable to the Company
after deduction of income subject to final tax 20,709 21,675
Temporary differences:
Allowance for expected credit losses (68) 394
Deferred installation fee 5 114
Leases (7) 6
Provision for employee benefits (365) (813)
Land rights, intangible assets, and other 26 9
Net periodic pension and other post-employment
benefits costs (1,110) (36)
Difference between book value of accounting
and tax property equipment (1,444) 571
Accrued expenses and provision for inventory
obsolescence 21 39
Contract cost 62 97
Net temporary differences (2,880) 381
Permanent differences:
Net periodic post-retirement health care benefit costs 190 190
Donations 181 176
Employee benefits 19 158
Equity in net income of associates and subsidiaries (12,724) (13,635)
Others 174 200
Net permanent differences (12,160) (12,911)
Taxable income of the Company 5,669 9,145
Current corporate income tax expense 1,077 1,738
Final income tax expense 45 27
Total current income tax expense of the Company 1,122 1,765
Current income tax expense of the subsidiaries 5,775 5,513
Total current income tax expense 6,897 7,278
73
Page 77
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
27. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows (continued):
The reconciliation between the income tax expense calculated by applying the applicable tax rate
of 19% 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:
2023 2022
Profit before income tax consolidation 32,282 29,197
Less consolidated income subject to final tax - net (4,394) (1,539)
27,888 27,658
Income tax expense calculated at the Company’s
applicable statutory tax rate 5,299 5,255
Difference in applicable statutory tax rate for
subsidiaries 587 697
Non-deductible expenses 876 132
Final income tax expense 45 29
Deferred tax adjusment (104) -
Unrecognized deferred tax 4 -
Others 186 268
Net income tax expense 6,893 6,381
In October 2021, the Government issued Law No. 7/2021 concerning Harmonization of Tax
Regulations (HPP Law). In Chapter III Article 3 of the HPP Law, amendments to the Income Tax
Law have been regulated, including amendments to Article 17 paragraph (1) letter b which
stipulates that the tax rate applied to Taxable Income for domestic corporate taxpayers and
permanent establishments is 22%, which comes into force in the 2022 tax year, and for corporate
taxpayers in the form of a limited liability company with a total number of paid-up shares is traded
on a stock exchange in Indonesia of at least 40% and meeting certain requirements can receive
3% tax rate lower than the expected rate.
The Company has applied the tax rate of 19% for the nine months period ended September 30,
2023 and 2022. The subsidiaries applied the tax rate of 22% for the nine months period ended
September 30, 2023 and 2022.
The company has submitted its Annual Corporate Income Tax Return for the 2022 fiscal year to
the Tax Authority in accordance with the applicable tax regulations.
e. Tax assessment
(i) The Company
Income tax and VAT fiscal year 2015
On April 25, 2017, the Tax Authorities issued Tax Overpayment Assessment Letter (“SKPLB”)
for corporate income tax amounting to Rp147 billion, and SKPKBs for underpayment of VAT
amounting to Rp13 billion (including penalty of Rp4.1 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 Rp55.3 billion (including penalty of Rp16.8 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 amounting to Rp26 billion.
74
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
27. TAXATION (continued)
e. Tax assessments (continued)
(i) The Company (continued)
Income tax and VAT fiscal year 2015 (continued)
The accepted portion was charged to the 2017 consolidated statements 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 Rp55.3 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 Rp54.6 billion, wherein Tax Authorities
reduced the Company’s underpayment and granted all the Company’s objection.
The Company agreed with the Tax Authorities decision regarding SKPLB of self-assessed
offshore VAT amounting to Rp793 million and charged in the 2018 consolidated statements
of profit or loss and other comprehensive income. 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.
On July 8, 2020, the Company received appeal decision from the Tax Court regarding
corporate income tax dispute for fiscal year 2015. The Tax Court partially approved the appeal
filed by the Company. On September 9, 2020, the Company received tax refund of additional
overpayment of corporate income tax amounting to Rp90.9 billion.
On October 26, 2020, the Company received notification letter from Tax Court that Tax
Authorities filed a judicial review of corporate income tax dispute for fiscal year 2015. On
December 2, 2020, the Company filed a contra memorandum for judicial review as response
of Tax Authorities judicial review.
The entire file of the Judicial Review Memorandum submitted by the Judicial Review Applicant
(DGT) and the Judicial Review Counter Memorandum file sent by the Respondent (Telkom)
have been forwarded by the Secretariat of the Tax Court to the Supreme Court on December
13, 2022, with a letter of introduction number PKMA-1594/XII/ PAN.Wk/2022.
On May 25 2023, the Supreme Court issued Decision number 1365/B/PK/Pjk/2023 which
rejected the DGT's request for review. Thus, all tax obligations for 2015 have permanent legal
force through the Issuance of the Supreme Court Decision and have passed the tax
determination expiration period as stipulated in the tax law.
Income tax and VAT fiscal year 2018
On December 16, 2020, the Company received Tax Assessment Letter (“SKP”) and STP as
result of 2018 tax audit. The DGT issued SKPLB of corporate income tax amounting to
Rp101.5 billion, SKPLB of withholding tax article 21 amounting to Rp1.9 billion (include penalty
Rp573.9 million), SKPLB of withholding tax article 23 amounting to Rp4 million (include penalty
Rp1.2 million) and SKPLB of VAT for fiscal period January to August and October to December
amounting to Rp85.3 billion).
Furthermore, the DGT issued SKPKB of VAT for fiscal period September amounting to
Rp240.5 billion (include penalty Rp59.5 billion), SKPKB of VAT WAPU amounting to Rp15.17
billion (include penalty Rp4.6 billion) and STP of VAT WAPU amounting to Rp1.2 billion.
75
Page 79
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
27. TAXATION (continued)
e. Tax assessments (continued)
(i) The Company (continued)
Income tax and VAT fiscal year 2018 (continued)
The Company agreed to receive tax audit correction of corporate income tax amounting Rp1.1
billion, underpayment of withholding tax article 21 amounting to Rp1.9 billion, underpayment
of withholding tax article 23 amounting to Rp4 million, VAT tax credit amounting to Rp4.8
billion, STP of VAT WAPU amounting Rp1.2 billion and underpayment of VAT WAPU
amounting to Rp15.17 billion. These corrections that have been approved have been charged
to the 2020 profit or loss income statement.
The Company did not agree with the correction from tax auditor who imposes VAT on the
transaction of submitting the space segment component (asset in constructive) of the Satelit
Merah Putih to Telkomsat. In March 2021, the Company has submitted a tax objection letter
to the Tax Authority for the correction of the tax auditor. On March 4, 2022, the Company
received notification letter from Tax Authority number KEP-00253/KEB/PJ/WPJ.19/2022 that
approved the objection filed by the Company. On April 8, 2022, the Company has received a
refund of Rp270.4 billion in accordance with the Decree. Thus, for all types of taxes in 2018
the Company has received all decisions that are final and have permanent legal force.
VAT fiscal year 2019
On May 12, 2022, the Company received a notice of field audit for overpayment of domestic
VAT for period January to December 2019. On November 30, 2022, the Company received
SKPKB and STP WAPU VAT for the period January to December 2019 amounting to Rp6.3
billion (including a fine of Rp3.1 billion) and domestic VAT SKPLB for January to December
2019 amounting to Rp 60.8 billion. The Company agrees to accept the auditor's tax correction
and has charged fines and audit corrections to the 2022 income statement. Thus, for the 2019
VAT tax type, the Company has received a decision that is final and has permanent legal
force.
On April 12, 2023, the Company received a Field Audit Notification Letter to test compliance
with tax obligations on Corporate Income Tax and Withholding Income Tax for the 2019 Tax
Year. As of the issuance date of these financial statements, the tax audit process is still
ongoing.
VAT fiscal year 2020
On September 1, 2022, the Company received a notice of field audit for overpayment of
domestic VAT for period May 2020. On March 10, 2023, the Company received SKPKB and
STP VAT for May 2020 WAPU in the amount of Rp0,6 billion (including a fine of Rp0.3 billion),
SKPN and STP VAT JKP from Outside the Customs Area in the amount of Rp0.1 billion, and
SKPLB VAT In Country Period May 2020 valued at Rp0.3 billion. The Company agreed to
accept the auditor's tax correction and has charged fines and correctional sanctions to the
2023 income statement.
On March 13, 2023, the Company received a Field Examination Notification Letter for
Overpayment of SPT Period Domestic VAT for the period January to April, July, September
and November to December 2020. On June 20, 2023, the Company received an Audit
Notification Letter to test compliance with tax obligations on Corporate Income Tax, VAT and
Withholding Income Tax for the 2020 Tax Year. As of the issuance date of these financial
statements, the audit process for all types of taxes is still ongoing.
76
Page 80
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
27. TAXATION (continued)
e. Tax assessments (continued)
(i) The Company (continued)
Income tax and VAT fiscal year 2021
On June 20, 2023, the Company received an Audit Notification Letter to test compliance with
tax obligations on Corporate Income Tax, VAT and Withholding Income Tax for the 2021 Tax
Year. As of the issuance date of these financial statements, the audit process for all types of
taxes is still ongoing.
(ii) Telkomsel
Income tax and VAT fiscal year 2014
In May 2019, Telkomsel received tax underpayment assessment letters for the 2014 CIT, VAT
and WHT in tot al amount of Rp150.60 billion (including penalty of Rp54.6 billion). Telkomsel
partially accepted the portion of Rp16.54 billion and charged it as expense in 2019
consolidated statement of profit or loss. Telkomsel also paid a portion of Rp99.06 billion out of
the remaining underpayment and recorded it as claim for tax refund. In August 2019,
Telkomsel filed an objection to the Tax Authorities for full amount of Rp134.06 billion.
In July 2020, Telkomsel received an objection decision letter which accepted Telkomsel’s
objection of Rp27.22 billion and rejected the remaining Rp106.84 billion. Telkomsel received
the tax refund of Rp27.22 billion in August 2020.
In September 2020, Telkomsel filed an appeal to the Tax Court for the 2014 CIT, WHT and
VAT assessments amounting to Rp106.84 billion.
In April 2022, Telkomsel received the Tax Court’s Verdict for the 2014 underpayment of WHT
and VAT, which partially accepted Telkomsel’s appeal amounting to Rp66.01 billion.
Telkomsel received the refund in April, May and June 2022, and charged the rejected portion
of Rp3.57 billion in the 2022 consolidated statement of profit or loss.
In August 2022, Telkomsel received notifications that the Tax Authorities had filed a judicial
review to the Supreme Court (“SC”) for the 2014 VAT amounting to Rp8.23 billion. Telkomsel
had since submitted its contra memorandums for the Judicial Review in September 2022.
In February and March 2023, the SC fully rejected the judicial review claimed by the Tax
Authorities on tax periods of 2014 VAT amounting to Rp8.23 billion. Thus, these cases have
been legally enforced (in-kracht) and no additional tax payables for fiscal year 2014.
As at the authorization date of these consolidated financial statements, the result of appeal for
CIT have not yet been received.
Income tax and VAT fiscal year 2015
In August 2019, Telkomsel received the tax underpayment assessment letters for the 2015
CIT, VAT and WHT in total amount of Rp384.82 billion (including penalty of Rp54.6 billion).
Telkomsel accepted the portion of Rp34.61 billion, which was paid and charged as expense
in the 2019 consolidated statement of profit or loss. Telkomsel also paid the remaining amount
of underpayment and recorded it as claim for tax refund. In September 2019, Telkomsel filed
an objection to the Tax Authorities for Rp350.21 billion.
In July 2020, Telkomsel received an objection decision letter from Tax Authorities that rejected
all Company’s objection.
77
Page 81
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
27. TAXATION (continued)
e. Tax assessments (continued)
(ii) Telkomsel (continued)
Income tax and VAT fiscal year 2015 (continued)
In September 2020, Telkomsel filed an appeal to the Tax Court for the 2015 CIT, WHT and
VAT assessments amounting to Rp350.21 billion.
In April and May 2022, Telkomsel received the Tax Court’s Verdict for the 2015 underpayment
of WHT and VAT which partially accepted the Telkomsel’s appeal amounting to Rp52.93
billion. Telkomsel received the refund in April and May 2022, and charged the rejected portion
of Rp3.03 billion in the 2022 consolidated statement of profit or loss.
In August 2022, Telkomsel received notifications that the Tax Authorities had filed a judicial
review to the SC for the 2015 VAT amounting to Rp23.70 billion. Telkomsel had since
submitted its contra memorandums for the Judicial Review in September 2022.
During February to May 2023, Telkomsel received decision letters from SC, which fully
rejected the Judicial Review claimed by the Tax Authorities for the tax periods of 2015 fiscal
year VAT amounting to Rp23.70 billion. Telkomsel has received all final decisions, which are
legally enforced (in-kracht) and thus, there are no additional tax payables for 2015 fiscal year
VAT.
As at the authorization date of these consolidated financial statements, the results of appeal
for CIT has not yet been received.
Income tax and VAT fiscal year 2018
In September 2022, Telkomsel received tax underpayment assessment letters for the 2018
CIT, VAT and WHT amounting to Rp159.76 billion (including penalty of Rp48.57 billion) in
total. At the same time, Telkomsel also received tax assessment letters for 2018 VAT
confirming tax overpayments in the amount of Rp40.05 billion.
On October 14, 2022, Telkomsel paid and accepted a portion of the CIT tax assessment of
Rp164.79 million, and charged it as expense in the 2022 consolidated statement of profit or
loss. Telkomsel also paid the remaining amount of tax assessment for CIT and VAT amounting
to Rp57.03 billion, after netting-off with overpayment of Rp40.05 billion. Telkomsel recorded it
as claim for tax refund in the consolidated statement of financial position.
On December 13, 2022, Telkomsel filed an objection to the Tax Authorities amounting to
Rp119.54 billion for CIT, VAT and WHT. As at the authorization date of these consolidated
financial statements, the results of objection have not yet been received.
78
Page 82
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
27. TAXATION (continued)
f. Deferred tax assets and liabilities
The details of the Group's deferred tax assets and liabilities are as follows :
Deferred tax asset and liabilities (Charged) credited to
in financial position profit or loss
September 30, 2023 December 31, 2022 2023 2022
The Company
Allowance for expected credit losses 872 885 (13) 75
Net periodic pension and other
post-employment benefit costs 994 981 (211) (7)
Difference between accounting and tax
bases of property and equipment 487 806 (224) 205
Provision for employee benefits 223 292 (69) (154)
Deferred installation fee 20 203 1 22
Land rights, intangible assets and others 28 23 5 2
Accrued expenses and provision for
inventory obsolescence 89 85 4 7
Leases (2) (1) (1) 1
Contract cost 14 (49) 12 19
Total deferred tax assets 2,725 3,225 (496) 170
Telkomsel
Provision for employee benefits 1,380 1,220 142 58
Allowance for expected credit losses 222 144 78 16
Leases 465 468 (3) (54)
Contract liabilities 420 - 236 -
Fair value measurement of financial
instruments (1) (7) 6 549
Difference between accounting and tax bases of
property and equipment (1,218) (1,445) 132 147
License amortization (154) (146) (8) 3
Contract cost (52) - (1) -
Other financial instruments (138) (119) (19) 4
Deferred tax assets of Telkomsel - net 924 115 563 723
Deferred tax assets of the other subsidiaries - net 747 777 (30) 157
Deferred tax liabilities of the other subsidiaries - net (1,051) (1,023) (33) (153)
Deferred tax expense (income) 4 897
Total deferred tax assets - net 4,396 4,117
Total deferred tax liabilities - net (1,051) (1,023)
g. Administration
As of September 30, 2023 and December 31, 2022 the aggregate amounts of temporary
differences associated with investments in subsidiaries and associated companies, for which
deferred tax liabilities have not been recognized were Rp75,284 billion and Rp23,915 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 estimate.
In October 2021, the Government also issued Law No.7/2021 on the Harmonization of Tax
Regulations, which, among other things, regulates the rates of income tax and VAT. Starting
January 1 2022, the Group applies the income tax rate on employee taxable income in accordance
with paragraph (1) letter a of Article 17 Chapter III, and starting April 1 2022 the VAT rate changes
to 11%. The company ensures the readiness of the surrounding billing system, administrative and
legal aspects of transactions, and builds intensive coordination between units, concerned to
prepare for the implementation of these rules.
In February 2022, the Government issued Government Regulation No. 9/2022 concerning the
Second Amendment to Government Regulation No. 51/2008 concerning Income Tax on Income
from Construction Services Business. The Company ensures administrative and legal aspects of
transactions and builds solid coordination between related units to prepare for the application of
the income tax rate rule for construction service businesses as stipulated in article 3 paragraph (1)
of the regulation.
79
Page 83
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
27. TAXATION (continued)
g. Administration (continued)
In June 2023, the Government issued Minister of Finance Regulation No. 66/PMK.03/2023
concerning PPh Treatment of Reimbursement or Compensation in Relation to Work or Services
Received or Obtained in Kind and/or Enjoyment. The company ensures administrative and legal
aspects of transactions, and builds intensive coordination between related units to implement these
rules.
28. BASIC EARNINGS PER SHARE
Basic earnings per share is computed by dividing profit for the periode attributable to owners of the
parent company amounting to Rp19,499 billion and Rp16,581 billion by the weighted average number
of shares outstanding during the period totaling 99,062,216,600 shares for the nine months period
ended September 30, 2023 and 2022, respectively. The weighted average number of shares takes
into account the weighted average effect of changes in treasury stock transaction during the period.
Basic earnings per share amounting to Rp196.84 and Rp167.38 (in full amount) for the nine months
period ended September 30, 2023 and 2022, respectively.
The Company does not have potentially dilutive financial investments for the nine months period ended
September 30, 2023 and 2022.
29. CASH DIVIDENDS AND GENERAL RESERVE
Pursuant to the AGM of Stockholders of the Company as stated in Notarial Deed No. 29 dated
May 27, 2022 of Ashoya Ratam, S.H., M.Kn., the Company’s stockholders approved the distribution
of cash dividend for 2021 amounting to Rp14,856 billion (Rp149.97 per share). The Company paid
cash dividend on June 30, 2022.
Pursuant to the AGM of Stockholders of the Company as stated in Notarial Deed No. 73 dated
May 30, 2023 of Ashoya Ratam, S.H., M.Kn., the Company’s stockholders approved the distribution
of cash dividend for 2022 amounting to Rp16,602 billion (Rp167.59 per share). The Company paid
cash dividend on July 5, 2023.
Under the Limited Liability Company Law, the Company is required to establish a statutory reserve
amounting to at least 20% of its issued and paid-up capital.
The balance of the appropriated retained earnings of the Company as of September 30, 2023 and
December 31, 2022 amounting to Rp15,337 billion, respectively.
80
Page 84
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS
The details of pension and other post-employment benefit liabilities are as follows:
Notes September 30, 2023 December 31, 2022
Pension benefit and other post-employment
benefit obligations
Pension benefit
The Company - funded 30a.i.a
Defined pension benefit obligation 30a.i.a.i 4,321 4,234
Additional pension benefit obligation 30a.i.a.ii 47 44
The Company - unfunded 30a.i.b 503 522
Telkomsel 30a.ii 4,692 4,275
Projected pension benefit obligations 9,563 9,075
Net periodic post-employment health care
benefit 30b 584 -
Other post-employment benefit 30c 253 268
Long service employee benefit 30d 1 1
Obligation under the Labor Law 30e 1,062 928
Total 11,463 10,272
The details of net pension benefit expense recognized in the consolidated statements of profit or loss
and other comprehensive income is as follows:
Notes 2023 2022
Pension benefit cost
The Company - funded 30a.i.a
Defined pension benefit obligation 30a.i.a.i 487 520
Additional pension benefit obligation 30a.i.a.ii 2 0
The Company - unfunded 30a.i.b 41 44
Telkomsel 30a.ii 473 438
Total periodic pension benefit cost 25 1,003 1,002
Net periodic post-employment health care
benefit cost 24,30b 190 190
Other post-employment benefit cost 24,30c 16 19
Long service employee benefit cost 24,30d 1 1
Obligation under the Labor Law 24,30e 146 119
Total 1,356 1,331
81
Page 85
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The following table presents the changes in projected post-employment health care benefit provision,
changes in post-employment health care benefit plan assets, funded status of the post-employment
health care benefit plan, and net amount recognized in the Company’s consolidated statement of
financial position as of September 30, 2023 and December 31, 2022:
Funded Post-employment
Defined pension benefit obligation health care benefit
The Company Telkomsel The Company
Projected
post-
Projected Projected employment Post-employment
pension Pension pension Pension health care health care
benefit benefit benefit benefit benefit benefit
obligations plan assets obligations plan assets obligation plan assets Total
Balance, January 1, 2023 23,136 (18,902) 5,128 (853) 12,878 (12,878) 8,509
Service costs 251 - 247 - - - 498
Interest costs (income) 1,188 (978) 226 - 684 (679) 441
Plan administration cost (100) 100 - - - 181 181
Additional welfare benefits 50 - - - - - 50
Cost recognized in the consolidated
statement of profit or loss 1,389 (878) 473 - 684 (498) 1,170
Actuarial (gain) loss on:
Experience adjustments 114 - - - (14) - 100
Changes in demographic assumptions - - - - - - -
Changes in financial assumptions 1,351 - - - 575 - 1,926
Return on plan assets
(excluding amount included in
net interest expense) - (202) - - - (81) (283)
Interest income in asset ceiling - - - - - 6 6
Changes in asset ceiling - - - - - (88) (88)
Cost recognized in OCI 1,465 (202) - - 561 (163) 1,661
Employer’s contributions - (1,575) - - - - (1,575)
Pension plan participants’ contributions 13 (13) - - - - -
Benefits paid from plan assets (1,473) 1,473 - - (437) 437 -
Benefits paid by employer (50) - (117) - - - (167)
FMC's transfer program (62) - 231 (170) - - (1)
Balance, September 30, 2023 24,418 (20,097) 5,715 (1,023) 13,686 (13,102) 9,597
Projected pension benefit
obligation at end of year 4,321 4,692 584 9,597
Funded Post-employment
Defined pension benefit obligation health care benefit
The Company Telkomsel The Company
Projected
Projected Projected post-employment Post-employment
pension Pension pension Pension health care health care
benefit benefit benefit benefit benefit benefit
obligations plan assets obligations plan assets obligation plan assets Total
Balance, January 1, 2022 23,838 (18,947) 5,020 (832) 13,416 (12,778) 9,717
Service costs 178 - 326 - - - 504
Interest costs (income) 1,635 (1,347) 328 (58) 982 (933) 607
Plan administration cost - 63 - - - 164 227
Additional welfare benefits 65 - - - - - 65
Cost recognized in the consolidated
statement of profit or loss 1,878 (1,284) 654 (58) 982 (769) 1,403
Actuarial (gain) loss on:
Experience adjustments (737) - (1) - (730) - (1,468)
Changes in demographic assumptions - - (1) - - - (1)
Changes in financial assumptions (30) - (67) - (136) - (233)
Return on plan assets
(excluding amount included in
net interest expense) - 300 (186) 37 - (69) 82
Changes in asset ceiling - - - - - 84 84
Cost recognized in OCI (767) 300 (255) 37 (866) 15 (1,536)
Employer’s contributions - (719) - - - - (719)
Pension plan participants’ contributions 19 (19) - - - - -
Benefits paid from plan assets (1,767) 1,767 (291) - - - (291)
Benefits paid by employer (65) - - - (654) 654 (65)
Balance, December 31, 2022 23,136 (18,902) 5,128 (853) 12,878 (12,878) 8,509
Projected pension benefit
obligation at end of year 4,234 4,275 - 8,509
82
Page 86
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The following table presents the changes in projected post-employment health care benefit provision,
changes in post-employment health care benefit plan assets, funded status of the post-employment
health care benefit plan, and net amount recognized in the Company’s consolidated statement of
financial position as of September 30, 2023 and December 31, 2022 (continued):
The Company
The Company and its subsidiaries
Other
post- Long
Additional employment service Obligations
pension benefit benefit employee under
Unfunded obligations obligations benefit the labor law Total
Balance, January 1, 2023 522 44 268 1 928 1,763
Service costs 16 0 5 1 129 151
Interest costs 25 2 11 - 17 55
Cost recognized in the consolidated
statement of profit or loss 41 2 16 1 146 206
Actuarial (gain) loss recognized in OCI (2) 3 6 - 7 14
Benefits paid by employer (39) (2) (27) (1) (27) (96)
FMC's transfer program (19) 0 (10) - 8 (21)
Balance, September 30, 2023 503 47 253 1 1,062 1,866
The Company
The Company and its subsidiaries
Other
post- Long
Additional employment service Obligations
pension benefit benefit employee under
Unfunded obligations obligations benefit the labor law Total
Balance, January 1, 2022 613 - 300 4 926 1,843
Service costs 24 37 8 1 78 148
Interest costs 34 - 17 - - 51
Cost recognized in the consolidated
statement of profit or loss 58 37 25 1 78 199
Actuarial gain recognized in OCI (55) 7 (14) - (13) (75)
Benefits paid by employer (94) - (43) (4) (63) (204)
Balance, December 31, 2022 522 44 268 1 928 1,763
The components of net periodic pension benefit cost for the nine months period ended September 30,
2023 and 2022 are as follows:
The Company
and its
The Company Telkomsel subsidiaries
Post- Other
Defined Additional employment post- Long Defined
penison penison health care employment service penison Obligations
benefit benefit benefit benefit employee benefit under
2023 obligations obligations Unfunded cost obligations benefit obligations the labor law Total
Service costs 251 0 16 - 5 1 247 129 649
Interest costs 210 2 25 5 11 - 226 17 496
Interest costs in asset ceiling - - - 4 - - - - 4
Plan administration cost - - - 181 - - - - 181
Additional welfare benefits 50 - - - - - - - 50
Net periodic pension benefit cost 511 2 41 190 16 1 473 146 1,380
Amount charged to subsidiaries
under contractual agreements (24) - - - - - - - (24)
Net periodic pension benefit
cost less charged
to subsidiaries 487 2 41 190 16 1 473 146 1,356
83
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The components of net periodic pension benefit cost for the nine months period ended September 30,
2023 and 2022 are as follows (continued):
The Company
The Company Telkomsel and its subsidiaries
Post- Other
Defined Additional employment post- Long Defined
penison penison health care employment service penison Obligations
benefit benefit benefit benefit employee benefit under
2022 obligations obligations Unfunded cost obligations benefit obligations the labor law Total
Service costs 176 - 18 - 6 1 218 119 538
Interest costs 241 - 26 36 13 - 266 - 582
Plan administration cost 53 - - 154 - - - - 207
Additional welfare benefits 65 - - - - - - - 65
Interest income - - - - - - (46) - (46)
Net periodic pension benefit cost 535 - 44 190 19 1 438 119 1,346
Amount charged to subsidiaries
under contractual agreements (15) - - - - - - - (15)
Net periodic pension
benefit coss less
charged to subsidiaries 520 - 44 190 19 1 438 119 1,331
a. Pension benefit costs
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”). Pension Fund
Management in accordance with the Pension Fund and Investment Directives
Regulations determined by the Founder is carried out by the Board of Management.
The Board of Management is monitored by the Oversight Board consisting of
representatives of the Company and participants.
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 made contributions to the pension fund amounted to Rp1,575 billion and
Rp719 billion, for the nine months period ended September 30, 2023 and for the year
ended December 31, 2022, respectively.
Risks exposed to defined benefit programs are risks such as asset volatility and
changes in bond yields. The project liabilities are calculated using a discount rate that
refers to the level of government bond yields, if the return on program assets is lower,
it will result in a program deficit. A decrease in the yield of government bonds will
increase the program liabilities, although this will be offset in part by an increase in the
value of the program bonds held. The Company ensures that the investment position is
set within the framework of asset-liability matching ("ALM") that has been formed to
achieve long-term results that are in line with the liabilities in the defined benefit pension
plan. Within the ALM framework, the Company's objective is to adjust its pension assets
and liabilities by investing in a well diversified portfolio to produce an optimal rate of
return, taking into account the level of risk. Investment in the program has been well
diversified, so that one investment's poor performance will not have a material impact
on all asset groups.
84
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
(a) Funded pension plan (continued)
(i) Defined pension benefit obligation (continued)
As of September 30, 2023 and December 31, 2022, plan assets consist of:
September 30, 2023 December 31, 2022
Quoted in Quoted in
active market Unquoted active market Unquoted
Cash and cash equivalents 496 - 1,320 -
Equity instruments:
Financials 1,701 - 1,638 -
Consumer non-cyclicals 514 - 505 -
Basic material 295 - 271 -
Infrastructures 712 - 639 -
Energy 180 - 141 -
Technology 33 - 89 -
Industrials 373 - 315 -
Consumer cyclicals 105 - 115 -
Properties and real estate 113 - 98 -
Healthcare 195 - 208 -
Transportation and logistic 9 - 8 -
Equity-based mutual fund 381 - 410 -
Fixed income instruments:
Corporate bonds - 2,570 - 3,117
Government bonds 10,193 - 7,884 -
Fixed income mutual funds - 106 - 122
Midterm notes - 99 - 100
Asset-backed securities - 15 - 30
Sukuk - 1,093 - 1,090
Non-public equity:
Direct placement - 365 - 368
Property - 184 - 187
Others - 363 - 247
Total 15,300 4,795 13,641 5,261
Pension plan assets include Series B shares issued by the Company with fair values
totalling to Rp414 billion and Rp336 billion, representing 2.04% and 1.78% of total plan
assets as of September 30, 2023 and December 31, 2022, respectively, and bonds
issued by the Company with fair value totalling to Rp348 billion and Rp348 billion
representing 1.71% and 1.84% of total plan assets as of September 30, 2023 and
December 31, 2022, 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 Rp1,080 billion and Rp984 billion for the nine months period
ended September 30, 2023 and for the years ended December 31, 2022, 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 September
30, 2023, Dapen’s FSR is below 105%. Therefore, the Company will contribute to the
defined benefit pension plan.
85
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
(a) Funded pension plan (continued)
(i) Defined pension benefit obligation (continued)
Based on the Company Regulations issued on September 30, 2022, regarding the
Pension Fund Regulations from the Telkom Pension Fund, the Company stipulates that
retirees who quit other than because of Disciplinary Punishment, Early Retirement, and
at their own request and receive Pension Benefits of less than Rp1 million per month
are given increase in monthly Pension Benefits to Rp1 million. In 2023 and 2022, the
Company provided employee welfare benefit to pensioners and pension beneficiaries
who entered their retirement period before June 30, 2002 amounting to Rp50 billion and
Rp65 billion,respectively.
The actuarial valuation for the defined benefit pension plan was performed based on
the measurement date as of June 30, 2023 and December 31, 2022, with reports dated
July 21, 2023 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The
principal actuarial assumptions used by the independent actuary for June 30, 2023 and
December 31, 2022 are as follows:
June 30, 2023 December 31, 2022
Discount rate 6.50% 7.25%
Rate of compensation increases 8.00% 8.00%
Indonesian mortality table 2019 2019
(ii) Additional pension benefit obligation
Based on the Company Regulations issued on September 30, 2022, regarding the
Regulations on Pension Funds from Telkom Pension Funds, the Company organizes a
Defined Contribution Other Benefit Program (“PMLIP”) in the form of Additional Benefits.
PMLIP participants are entitled to receive Periodic Pension Benefits every month in
accordance with the provisions in the Pension Fund Regulations. Additional Benefit
Funds are sourced from Employer Additional Benefit contributions and provision for
investment development proceeds if the FSR is achieved above 102% and the rate of
Return On Investment (“ROI”) is above the actuarial interest rate for funding. The
employer's additional benefit contribution for each PMLIP participant is set at Rp120
thousand for annual contribution period which is calculated proportionally according to
the amount received.
The actuarial valuation for additional pension benefit plan was performed based on the
measurement date as of June 30, 2023 and December 31, 2022, with reports dated
July 21, 2023 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The
principal actuarial assumptions used by the independent actuary for June 30, 2023 and
December 31, 2022 are as follows:
June 30, 2023 December 31, 2022
Discount rate 6.50% 7.25%
Indonesian mortality table 2019 2019
86
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
(a) Funded pension plan (continued)
(ii) Additional pension benefit obligation (continued)
Additional pension benefit obligation have been set aside since 2018 according to the
approval by the Oversight Board. As of September 30, 2023, no additional obligations
have been set aside because the requirements for recognizing additional benefits as
mentioned above have not been fulfilled.
(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 Rp38 billion and Rp48 billion, for the nine months
period ended September 30, 2023 and for the years ended December 31, 2022,
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 April 1, 2012, 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 actuarial valuation for the defined benefit pension plan was performed, based on the
measurement date as of June 30, 2023 and December 31, 2022, with reports dated
July 21, 2023 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The
principal actuarial assumptions used by the independent actuary for June 30, 2023 and
December 31, 2022 are as follows:
June 30, 2023 December 31, 2022
Discount rate 6.50% 7.00%-7.25%
Rate of compensation increases 6.10%-8.00% 6.10%-8.00%
Indonesian mortality table 2019 2019
87
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
ii. Telkomsel
Telkomsel provides a defined benefit pension plan to its employees. Under this plan, employees
are entitled to pension benefits determined based on their latest basic salary or take-home pay
(exclusive of functional allowances) and number of service years. The plan is managed by
PT Asuransi Jiwasraya (Persero) (“Jiwasraya”), a state-owned life insurance company, through
an annuity insurance contract. Until 2004, employees contributed 5% of their monthly salaries
to the plan, while Telkomsel contributed the remaining part required under the plan. Beginning
in 2005, Telkomsel has been taking the responsibility for the full amount of the contributions.
On April 23, 2021, Telkomsel and Jiwasraya agreed to terminate the insurance program contract
(as mentioned above) and entered into restructuring agreement. The agreement replaced the
benefit plan from annuities to lumpsum benefit. Based on this agreement, both parties agreed
to determine the Cash Value (“CV”) at the termination date which divided into CV for active
participant and passive participant amounting to Rp857 billion and Rp73 billion, respectively.
There was a 5% cut from CV for active participant, hence the 95% of Rp857 billion (or equal to
Rp814 billion) plus Rp73 billion will be the amount that subsequently taken over by IFG Life
when the agreement with IFG Life become effective and accordingly, the restructuring
agreement will be terminated. On December 31, 2022, the CV of active participant amounting
to Rp853 billion.
On June 27, 2023, the Company and Telkomsel signed an agreement regarding Dapen to
appoint Telkomsel as a Partner of the Company as the sole Founder, which resulted in rights
and obligations to Telkomsel as governed in the Pension Fund Agreement effective from the
transfer of business date.
Effective from the transfer of business date, Telkomsel sponsors a defined benefit pension plan
for transferring employees hired prior to July 1, 2002. The plan is governed by the pension laws
in Indonesia and managed by Dapen. Dapen is managed in accordance with the Pension Fund
and Investment Directives Regulations, which is determined by the Company as the Founder
and is carried out by the Board of Management. The Board of Management is monitored by the
Oversight Board, appointed by the Founder.
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%
of their basic salaries to the pension fund. Telkomsel has not made contributions to the pension
fund yet for the period ended September 30, 2023.
The actuarial valuation for the defined benefit pension plan was performed based on the
measurement date as of December 31, 2022 and 2021 with reports dated February 28, 2023
and March 24, 2022, respectively, by KKA Halim and Partner, an independent actuary in
association with Milliman, and KKA Santhi Devi and Ardianto Handoyo, an independent actuary
in association with WTW. The principal actuarial assumptions used by the independent actuary
as of December 31, 2022 and 2021, are as follows:
2022 2021
Discount rate 7.15% 7.00%
Rate of compensation increases 8.00% 8.00%
Indonesian mortality table 2019 2019
88
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
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 Telkom”).
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 Telkom for
the nine months period ended September 30, 2023 and for the years ended December 31, 2022.
As of September 30, 2023 and December 31, 2022, plan assets consists of:
September 30, 2023 December 31, 2022
Quoted in Quoted in
active market Unquoted active market Unquoted
Cash and cash equivalents 476 - 1,085 -
Equity instruments:
Financials 1,468 - 1,368 -
Consumer non-cyclicals 408 - 114 -
Basic material 270 - 264 -
Infrastructures 629 - 598 -
Energy 151 - 221 -
Technology 42 - 63 -
Industrials 298 - 185 -
Consumer cyclicals 118 - 457 -
Properties and real estate 109 - 95 -
Healthcare 166 - 233 -
Transportation and logistic 7 - 3 -
Equity-based mutual funds 465 - 1,035 -
Fixed income instruments:
Government obligations 1,074 - 82 -
Fixed income mutual funds 7,036 - 6,761 -
Unlisted shares:
Private placement - 385 - 398
Total 12,717 385 12,564 398
Yakes Telkom plan assets also include Series B shares issued by the Company with fair value
totalling Rp315 billion and Rp228 billion, representing 2.40% and 1.76% of total plan assets as of
September 30, 2023 and December 31, 2022, 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 Rp578 billion and Rp839
billion for the nine months perido ended September 30, 2023 and for the years ended December
31, 2022, respectively.
89
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Post-employment health care benefit cost (continued)
The actuarial valuation for the post-employment health care benefits plan was performed based on
the measurement date as of June 30, 2023 and December 31, 2022, with reports dated
July 21, 2023 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal
actuarial assumptions used by the independent actuary for June 30, 2023 and December 31, 2022
are as follows:
June 30, 2023 December 31, 2022
Discount rate 6.75% 7.25%
Health care costs trend rate assumed for next year 7.00% 7.00%
Ultimate health care costs trend rate 7.00% 7.00%
Year that the rate reaches the ultimate trend rate 2022 2022
Indonesian mortality table 2019 2019
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”) and death allowance (Meninggal Dunia or “MD” allowance) is given to
employees who have passed away with an amount of 12 times from the last salary.
The actuarial valuation for the other post-employment benefits plan was performed based on
measurement date as of June 30, 2023 and December 31, 2022, with reports dated
July 21, 2023 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal
actuarial assumptions used by the independent actuary for June 30, 2023 and December 31, 2022
are as follows:
June 30, 2023 December 31, 2022
Discount rate 6.25% 6.75%
Indonesian mortality table 2019 2019
d. Long service employee benefits
The company provides long service employee benefits to employee hired before July 1, 2002 and
have a service period of more than 30 years and retired after September 19, 2019. Total obligation
recognized as of September 30, 2023 and December 31, 2022 amounted to Rp1 billion and
Rp1 billion, respectively. The related long service employee benefits cost charged to expense
amounted to Rp1 billion and Rp1 billion for the nine months period ended September 30, 2023 and
2022, respectively.
e. Obligation under the Labor Law
Under Law No. 11 Year 2020, 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
recognized as of September 30, 2023 and December 31, 2022 amounted to Rp1,062 billion and
Rp928 billion, respectively. The related pension employee benefits cost charged to expense
amounted to Rp146 billion and Rp119 billion for the nine months period ended September 30, 2023
and 2022, respectively.
90
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
f. Maturity Profile of Defined Benefit Obligation (“DBO”)
The timing of benefits payments and weighted average duration of DBO for 2023 and 2022 are
as follows:
Expected Benefits Payment
The Company
Funded
Defined Additional Post-employment Other post- Post-employment
pension benefit pension benefit health care employment benefits
Time Period obligation obligation Unfunded Telkomsel benefits benefits UUCK (Telkom)
September 30, 2023
Within next 10 years 19,787 38 605 5,111 7,865 272 65
Within 10-20 years 16,073 30 218 11,178 12,909 115 389
Within 20-30 years 9,937 17 392 7,827 11,806 72 458
Within 30-40 years 3,868 6 74 473 5,171 4 58
Within 40-50 years 768 1 - - 866 - -
Within 50-60 years 62 - - - 51 - -
Within 60-70 years 1 - - - 5 - -
Within 70-80 years - - - - 1 - -
Weighted average
duration of DBO 8.71 years 8.71 years 5.56 years 9.45 years 12.58 years 4.57 years 11.52 years
December 31, 2022
Within next 10 years 21,232 40 705 5,111 8,092 324 59
Within 10-20 years 16,485 31 229 11,178 12,746 123 414
Within 20-30 years 10,414 18 430 7,827 12,019 83 497
Within 30-40 years 4,209 6 96 473 5,491 6 80
Within 40-50 years 882 1 - - 970 - -
Within 50-60 years 77 - - - 59 - -
Within 60-70 years 2 - - - 6 - -
Within 70-80 years - - - - 1 - -
Weighted average
duration of DBO 8.48 years 8.48 years 5.52 years 9.45 years 12.40 years 4.62 years 11.69 years
g. Sensitivity Analysis
As of September 30, 2023 and December 31, 2022, 1% change in discount rate and rate of
compensation would have effect on DBO, are as follows:
Discount Rate Rate of Compensation
1% Increase 1% Decrease 1% Increase 1% Decrease
Increase (decrease) in amounts Increase (decrease) in amounts
Sensitivity
September 30, 2023
Funded:
Defined pension benefit obligation (2,280) 2,719 239 (228)
Unfunded (24) 26 26 (24)
Telkomsel (472) 539 588 (524)
Post-employment health care benefits (1,544) 1,864 1,847 (1,559)
Other post-employment benefits (12) 13 3 (3)
Post-employment benefits UUCK (Telkom) (9) 10 30 (26)
December 31, 2022
Funded:
Defined pension benefit obligation (1,948) 2,291 268 255
Unfunded (24) 27 29 (27)
Telkomsel (430) 491 536 (477)
Post-employment health care benefits (1,413) 1,703 1,629 1,380
Other post-employment benefits (12) 13 - -
Post-employment benefits UUCK (Telkom) (8) 10 27 (24)
91
Page 95
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
g. Sensitivity Analysis (continued)
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.
28.
31. LONG SERVICE AWARDS (“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 Long
Service Leaves (“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 Rp1,158 billion and Rp1,031 billion as of
September 30, 2023 and December 31, 2022, respectively. The related benefit costs charged to
expense amounted Rp218 billion and Rp255 billion for the nine months period ended September 30,
2023 and 2022, respectively (Note 24).
92
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
32. RELATED PARTIES 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 parties Nature of accounts/transactions
The Government Majority stockholder Internet and data service revenues, other
Ministry of Finance telecommunication service revenues, finance
costs, and investment in financial instruments
State-owned enterprises Entity under common control Internet and data service revenues, other
telecommunication services revenues,
operating expenses, and purchase of property
and equipments
Indosat Entity under common control Interconnection revenues, leased lines
revenues, satellite transponder usage
revenues, interconnection expenses,
telecommunication facilities usage expenses,
operating and maintenance expenses, and
usage of data communication network system
expenses
PT Pertamina (Persero) (“Pertamina”) Entity under common control Internet and data service revenues, and other
telecommunication service revenues
State-owned banks Entity 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
BRI 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
PT Perusahaan Listrik Negara Entity under common control Internet and data service revenues, other
(“PLN”) telecommunication service revenues, and
electricity expenses
PT Asuransi Jasa Indonesia Entity under common control Fixed assets insurance expenses and personal
(“Jasindo”) insurance expenses
PT BNI Life Insurance (“BNI Life Entity under common control Medical expenses
Insurance”)
Bahana TCW Entity under common control Mutual funds
Sarana Multi Infrastruktur Entity under common control Other borrowing and finance costs
Omni Inovasi Indonesia Associated company Distribution of SIM cards and pulse reload
voucher
Finarya Associated company Marketing expenses and distribution of SIM cards
and pulse reload voucher
PT Kereta Cepat Indonesia China Other related entities Other telecommunication service revenuen
(“KCIC) expenses
Padi UMKM Other related entities Operational and maintenance expenses,
collection fees, training expenses, internal
security expenses, research and development
expenses, printing expenses, meeting
expenses, general and other administrative
expenses, promotion expenses, advertising
expenses, sales fees, customer education
expenses, and marketing expenses
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 the settlement occurs in cash. There have been no guarantees provided or received for any
related party receivables or payables. As of September 30, 2023 and December 31, 2022 the Group
recorded a increase (decrease) impairment loss from trade receivables of related party amounted to
Rp122 billion and Rp(57) billion. Impairment assessment is undertaken each financial year by examining
the current status of existing receivables and historical collection experience.
93
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
b. Significant transactions with related parties
2023 2022
% of total % of total
Amount revenues Amount revenues
Revenues
Majority Stockholder
Ministry of Finance 79 0.07 62 0.06
Entities under common control
Indosat 1,675 1.51 856 0.79
Pertamina 592 0.53 581 0.53
BNI 402 0.36 389 0.36
BRI 167 0.15 133 0.12
Bank Mandiri 103 0.09 127 0.12
Others (each below Rp100 billion) 899 0.81 1,184 1.09
Sub-total 3,838 3.45 3,270 3.01
Other related entities 43 0.04 115 0.11
Associated companies 11 0.01 7 0.01
Total 3,971 3.57 3,454 3.19
2023 2022
% of total % of total
Amount expenses Amount expenses
Expenses
Entities under common control
PLN 1,952 2.56 1,840 2.47
Indosat 410 0.54 407 0.55
Jasindo 148 0.19 242 0.33
BNI Life Insurance 104 0.14 - -
Others (each below Rp100 billion) 125 0.16 110 0.15
Sub-total 2,739 3.59 2,599 3.50
Other related entities
Padi UMKM 421 0.55 441 0.59
Others (each below Rp100 billion) 56 0.07 127 0.17
Sub-total 477 0.62 568 0.76
Associated companies 92 0.12 118 0.16
Total 3,308 4.33 3,285 4.42
2023 2022
% of total % of total
Amount finance income Amount finance income
Finance income
Entities under common control
State-owned banks 239 31.53 356 56.78
Total 239 31.53 356 56.78
2023 2022
% of total % of total
Amount finance cost Amount finance cost
Finance cost
Majority stockholder
Ministry of Finance 4 0.12 8 0.27
Entities under common control
State-owned banks 866 25.01 713 23.70
Sarana Multi Infrastruktur 64 1.85 84 2.79
Total 934 26.98 805 26.76
94
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
b. Significant transactions with related parties (continued)
2023 2022
% of total % of total
Amount purchases Amount purchases
Purchase of property
and equipments
Entities under common control 33 0.15 75 0.35
Total 33 0.15 75 0.35
2023 2022
% of total % of total
Amount revenues Amount revenue
Distribution of SIM
card and voucher
Associated companies
Omni Inovasi Indonesia 466 0.42 747 0.69
Finarya 122 0.11 - -
Total 588 0.53 747 0.69
c. Balance of accounts with related parties
September 30, 2023 December 31, 2022
% of total % of total
Amount assets Amount assets
Cash and cash equivalents
(Note 3) 17,006 6.16 23,328 8.48
Other current financial
asset (Note 4) 1,016 0.37 400 0.15
Trade receivables - net
(Note 5) 1,682 0.61 1,620 0.59
Contract assets
Majority stockholder
Government 14 0.01 24 0.01
Entities under common control 243 0.09 248 0.09
Associated companies 1 0.00 1 0.00
Other related entities 1 0.00 1 0.00
Total 259 0.10 274 0.10
Other current asset 36 0.01 98 0.04
Other non-current asset 7 0.00 15 0.01
September 30, 2023 December 31, 2022
% of total % of total
Amount liabilities Amount liabilities
Trade payables (Note 15)
Majority stockholder
Ministry of Finance 1 0.00 0 0.00
Entities under common control
State-owned enterprises 171 0.13 197 0.16
Indosat 180 0.14 140 0.11
Others 55 0.04 37 0.03
Sub-total 406 0.31 374 0.30
Other related entities 65 0.05 57 0.05
Total 472 0.36 431 0.35
95
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
c. Balance of accounts with related parties (continued)
September 30, 2023 December 31, 2022
% of total % of total
Amount liabilities Amount liabilities
Accrued expenses
Majority stockholder
Government 2 0.00 1 0.00
Entities under common control
State-owned enterprises 47 0.04 57 0.05
State-owned banks 33 0.03 74 0.06
Others 0 0.00 2 0.00
Sub-total 80 0.07 133 0.11
Total 82 0.07 134 0.11
Contract liabilities
Majority stockholder
Government 16 0.01 34 0.03
Entities under common control
State-owned enterprises 183 0.14 170 0.13
Others 1 0.00 0 0.00
Sub-total 184 0.14 170 0.13
Associated companies 8 0.01 2 0.00
Other related entities
KCIC 1,203 0.95 - -
Others 1 0.00 3 0.00
Sub-total 1,204 0.95 3 0.00
Total 1,412 1.11 209 0.16
Customer deposits 19 0.01 19 0.02
Short-term bank loans (Note 18) 4,821 3.80 4,462 3.54
Two-step loans (Note 19a) 132 0.10 209 0.17
Long-term bank loans (Note 19c) 9,663 7.63 11,284 8.96
Other borrowings (Note 19d) 482 0.38 1,314 1.04
d. 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”.
96
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
d. Significant agreements with related parties (continued)
ii. Indosat (continued)
The Company has been handling customer billings and collections for Indosat. Indosat is
gradually taking over the activities and performing its own direct billing and collection. The
Company has received compensation from Indosat computed at 1% of the collections made
by the Company starting from January 1, 1995, as well as the billing process expenses which
are fixed at a certain amount per record. On December 11, 2008, the Company and Indosat
agreed to implement IDD service charge tariff which already took into account the
compensation for billing and collection. The agreement is valid and effective in the current year
and can be applied until a new agreement becomes available.
On December 18, 2017, the Company and Indosat signed amendments to the interconnection
agreements for the fixed line networks (local, long distance direct connection 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, 2018.
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 PT Aplikanusa Lintasarta (“Lintasarta”). The leased lines can be used by these
companies for telephone, telegraph, data, telex, facsimile, or other telecommunication
services.
iii. Others
The Company entered into an agreement with Lintasarta for the use of satellite transponders
or the Company's subscribed circuit telecommunication satellite frequency channels.
e. 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 follow:
2023 2022
% of total % of total
Amount expenses Amount expenses
Board of Directors 311 0.41% 288 0.39%
Board of Commissioners 131 0.17% 132 0.18%
The amounts disclosed in the table are the amounts recognized as an expense during the reporting
periods.
97
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
33. OPERATING SEGMENTS
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 Indihome services (bundled service of fixed wireline, pay TV, and
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, Very Small Aperture Terminal (“VSAT”), broadband access, information
technology services, data, and internet services to other licensed operator companies and institutions.
Other segment provides digital content products (music and games), big data, Business to Business
(“B2B”) Commerce, and financial services to individual and corporate customers. There is no operating
segments that have been aggregated to form the reportable segments.
Management monitors the operating results of the business units separately for the purpose of
decision-making about resource allocation and performance assessment. Segment performance is
evaluated based on operating profit or loss and is measured consistently with operating profit or loss
in the consolidated financial statements. However, the financing activities and income taxes are
managed on a group basis and are not separately monitored and allocated to operating segments.
Segment revenues dan expenses include transactions between operating segments and are
accounted at prices that management believes represent market prices.
2023
Adjustment
Total and Total
Mobile Consumer Enterprise WIB Others segment elimination consolidated
Segment result
Revenues
External revenues 63,788 19,748 14,597 12,331 292 110,756 482 111,238
Inter-segment revenues 2,647 240 18,463 15,418 1,474 38,242 (38,242) -
Total segment revenues 66,435 19,988 33,060 27,749 1,766 148,998 (37,760) 111,238
Segment results 21,692 6,495 921 6,788 (826) 35,070 (2,788) 32,282
Other information
Capital expenditures (8,627) (4,084) (3,826) (5,452) (6) (21,995) (89) (22,084)
Depreciation and
amortization (15,662) (4,349) (2,800) (4,652) (14) (27,477) 3,396 (24,081)
Provision recognized in
current period (246) (364) (69) (26) (4) (709) 72 (637)
2022
Adjustment
Total and Total
Mobile Consumer Enterprise WIB Others segmen elimination consolidated
Segment result
Revenues
External revenues 63.487 19.680 13.698 11.303 174 108.342 532 108.874
Inter-segment revenues 2.522 153 17.898 14.198 1.884 36.655 (36.655) -
Total segment revenues 66.009 19.833 31.596 25.501 2.058 144.997 (36.123) 108.874
Segment results 22.425 6.063 397 6.635 (684) 34.836 (5.639) 29.197
Other information
Capital expenditures (8.957) (5.490) (3.578) (3.592) (3) (21.620) (51) (21.671)
Depreciation and
amortization (15.744) (5.300) (2.936) (4.223) (13) (28.216) 3.198 (25.018)
Provision recognized in
current period (109) (320) (578) 19 (2) (990) 71 (919)
Adjustments and eliminations:
a. Revenue reconciliation
2023 2022
Total segment revenues 148,998 144,997
Revenue from other non-operating segments 482 532
Inter-segment elimination (38,242) (36,655)
Consolidated revenues 111,238 108,874
98
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
33. OPERATING SEGMENTS (continued)
b. Segment result reconciliation
2023 2022
Total segment results 35,070 34,836
Loss from other non-operating segments (1,481) (1,384)
Adjustment and inter-segment elimination 1,393 (1,879)
Finance income 758 627
Finance cost (3,462) (3,009)
Share of loss of long-term investment in associates 4 6
Consolidated profit before income tax 32,282 29,197
c. Capital expenditure reconciliation
2023 2022
Total segment capital expenditure (21,995) (21,620)
Capital expenditure from
other non-operating segments (89) (51)
Consolidated capital expenditure (22,084) (21,671)
d. Depreciation and amortization reconciliation
2023 2022
Total segment depreciation and amortization (27,477) (28,216)
Depreciation and amortization from
other non-operating segments (186) (195)
Adjustment and inter-segment elimination 3,582 3,393
Consolidated depreciation and amortization (24,081) (25,018)
e. Provision recognized in current period
2023 2022
Total segment provision (709) (990)
Provision recognized from other
non-operating segments (23) (13)
Adjustment and inter-segment elimination 95 84
Consolidated provision recognized
in current period (637) (919)
Geographic information:
2023 2022
External revenues
Indonesia 105,375 103,152
Foreign countries 5,863 5,722
Total 111,238 108,874
The revenue information above is based on the location of the customers.
There is no revenue from major customer which exceeds 10% of total revenues for the period ended
September 30, 2023 and 2022.
September 30, 2023 December 31, 2022
Non-current operating assets
Indonesia 181,550 178,424
Foreign countries 2,911 3,207
Total 184,461 181,631
Non-current operating assets for this purpose consist of property and equipment and intangible assets.
99
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
34. TELECOMMUNICATIONS SERVICE TARIFFS
Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating
telecommunications network and/or services are determined by providers based on the tariff type,
structure, and with respect to the price cap formula set by the Government.
a. Fixed line telephone tariffs
The Government has issued a new adjustment tariff formula which is stipulated in
MoCI Regulation No. 5/2021 dated March 31, 2021 concerning “Telecommunication Operation”.
This Decree replaced the previous Decree No. 15/PER/M.KOMINFO/4/2008 dated April 30, 2008.
Under the Decree, tariff structure for basic telephony services connected through fixed line network
consists of the following:
i. Activation fee
ii. Monthly subscription charges
iii. Usage charges, and
iv. Additional facilities fee.
b. Mobile cellular telephone tariffs
On March 31, 2021, MoCI issued MoCI Regulation No. 5/2021, which provides guidelines to
determine cellular tariffs with a formula consisting of network element cost and retail services
activity cost.
Under MoCI Regulation No. 5/2021, cellular tariffs for the operation of telecommunication services
connected through mobile cellular network consist of the following:
(i) Basic telephony services tariff
(ii) Roaming tariff, and/or
(iii) Multimedia services tariff
with the following traffic structure:
(i) Activation fee
(ii) Monthly subscription charges, and/or
(iii) Usage charges
c. Interconnection tariffs
The Indonesian Telecommunication Regulatory Body (“ITRB”), in its letter No. 262/BRTI/XII/2011
dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost basis
with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all telecommunication
provider operators.
Based on letter No.118/KOMINFO/DJPPI/PI.02.04/01/2014 dated January 30, 2014 of the Director
General of Post and Informatics, the Director General of Post and Informatics decided to implement
new interconnection tariff effective from February 1, 2014 until December 31, 2016, subject to
evaluation on an annual basis. Pursuant to the Director General of Post and Informatics letter, the
Company and Telkomsel are required to submit the Reference Interconnection Offer (“RIO”)
proposal to ITRB to be evaluated.
Subsequently, ITRB in its letters No. 60/BRTI/III/2014 dated March 10, 2014 and
No. 125/BRTI/IV/2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of
RIO regarding the interconnection tariff. Based on the letter, ITRB also approved the changes to
the SMS interconnection tariff to Rp24 per SMS.
On January 18, 2017, ITRB in its letters No. 20/BRTI/DPI/I/2017 and No. 21/BRTI/DPI/I/2017,
decided to use the interconnection tariff based on the Company and Telkomsel’s RIO in 2014 until
the new interconnection tariff is set.
100
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
34. TELECOMMUNICATIONS SERVICE TARIFFS (continued)
d. Network lease tariffs
In 2008, the Director General of Post and Telecommunication issued Decree No. 115 of 2008 which
stated its agreement on Agreement on Network Lease Service Type Document, Network Lease
Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease Service,
and Provision Procedure of Network Lease Service Owned by Dominant Network Lease Service
Provider in conformity with the Company’s proposal. Through MoCI Regulation No. 5/2021, the
Government regulated the form, type, tariff structure, and tariff formula for services of network
lease.
e. Tariff for other services
The tariffs for satellite lease, telephony services, and other multimedia are determined by the
service provider by taking into account the expenditures and market price. The Government only
determines the tariff formula for basic telephony services. There is no stipulation for the tariff of
other services.
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS
a. Capital expenditures
As of September 30, 2023, capital expenditures committed under the contractual arrangements
are Rp8,703 billion and US$233 million.
The above balance includes the following significant agreements:
Contracting parties Date of agreement Significant part of the agreement
Development and Rollout Agreement
("DRA") and Technical Support
September 12, 2019 -
Telkomsel and PT Phincon Agreement ("TSA") Customer
September 12, 2024
Relationship Management ("CRM")
Solution System Integrator
Telkomsel, PT Ericsson Indonesia,
February 1, 2021 - Procurement Agreement for Radio
PT Huawei Tech Investment, and
January 31, 2024 Ultimate Solution ("ROA") and TSA
PT ZTE Indonesia
The Company and PT June 3, 2021 - Procurement and Installation Agreement
Mastersystem Infotama September 27, 2023 of Expand IP Backbone Platform Cisco
Telkomsel, PT Sempurna Global
Procurement Agreement of Next
Pratama, PT Lintas Teknologi September 1, 2021 -
Generation of Gateway GPRS Support
Indonesia, and PT Ericsson September 1, 2024
Node ("GGSN") (Virtualized EPC)
Indonesia
Telkomsel, Amdocs Software
Agreement Online Charging System
Solutions Limited Liability October 8, 2021 -
(“OCS”) and Service Control Points
Company, and PT Application October 8, 2024
(“SCP”) System Solution Development
Solutions
Telkomsel and PT Application October 8, 2021 -
TSA for OCS and SCP
Solutions October 8, 2024
Telkomsat and Thales Alenia October 28, 2021 - Procurement and Installation Agreement
Space France ("TAS") October 27, 2037 of HTS 113BT Satellite System
Telkomsel and PT Ericsson February 13, 2022 - Procurement Agreement for CS Core
Indonesia February 12, 2025 Solution ROA and TSA
Telkomsel and PT Lintas Teknologi February 13, 2022 - Procurement Agreement for CS Core
Indonesia February 12, 2025 Solution ROA and TSA
Telkomsel and PT Huawei Tech March 24, 2022 -
Procurement Agreement for GGSN
Investment March 24, 2025
Telkomsat and Space Exploration
April 19, 2022 - Procurement Agreement for Launch
Technologies Corporation
June 30, 2025 Service of HTS 113BT Satellite
("SpaceX")
The Company and PT Sisindokom August 18, 2023 - Procurement and Installation Expand PE
Lintas Buana February 13, 2024 Router
101
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
b. Borrowings and other credit facilities
(i) As of September 30, 2023, the Company has bank guarantee facilities for tender bonds,
performance bonds, maintenance bonds, deposit guarantee, and advance payment bonds for
various projects of the Company, as follows:
Lenders Total facility Maturity Currency Facility utilized
BRI 500 March 14, 2024 Rp 22
BNI 500 March 31, 2024 Rp 89
Bank Mandiri 500 December 23, 2023 Rp 117
Total 1,500 228
(ii) As of September 30, 2023, Telkomsel has bank guarantee facilities for various projects, as
follows:
Lenders Total facility Maturity Currency Facility utilized
BRI 1,000 September 25, 2023 Rp 620
BNI 2,100 December 11, 2023 Rp 1,435
Total 3,100 2,055
Bank guarantee facility with BRI and BNI are mainly for performance bond and surely bond of
radio frequency (Note 35c.i).
(iii) Telin has a maximum credit limit of US$25 million or equal to Rp375 billion will expire on
December 23, 2023. As of September 30, 2023, There is no bank guarantee facility used.
c. Others
(i) Radio frequency usage
With reference to the Decision Letter No. 025/TEL.01.02/2022 Year 2022 dated January 28,
2022 of the MoCI, the MoCI granted Telkomsel the rights to provide mobile telecommunication
services with radio frequency bandwidth in the 800 MHz, 900 MHz, 1,800 MHz, 2.1 GHz and
2.3 GHz; and basic telecommunication services.
With reference to Decision Letters No.509 Year 2016, No. 1896 year 2017, No. 806 Year 2019,
No.620 Year 2020, No. 178 Year 2021, No. 479 Year 2022, No. 90 Year 2023,and No. 188
Year 2023 of the MoCI, Telkomsel is required, among other things, to:
1. Issue a surety bond each year amounting Rp1.03 trillion for spectrum 2.3 GHz.
2. Issue a surety bond each year amounting Rp360 billion for both spectrum 2.3 GHz
Block A and C.
3. Issue a surety bond amounting Rp617.15 billion for spectrum 2.1 GHz.
4. Pay an annual right of usage (“BHP”) 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.
The following are radio frequency band licenses owned by Telkomsel along with the BHP fees
paid during current year:
1. Radio frequency for band 800 MHz, 900 MHz, and 1,800 MHz
Based on Decree No. 620 Year 2020 of the MoCI, concerning the extension of the
determination of radio frequency bands 800 MHz, 900 MHz and 1,800 MHz, Telkomsel
should pay annual frequency usage fees from 2020 to 2030.
102
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(i) Radio frequency usage (continued)
2. Radio frequency for band up to 2.1 GHz
license
License No. Description
Decree No. 90 Year 2023 of the On February 27, 2023, Telkomsel granted to utilize the annual
MoCI amd. Decree No. 76 Year radio frequency license for band 1,975 – 1,980 MHz paired
2023 of the MoCI with 2,165 – 2,170 MHz until March 18, 2033.
Decree No. 509 Year 2016 of the MoCI granted the extension of the radio frequency license for
MoCI amd. Decree No. 76 Year band 1,970 – 1,975 MHz paired with 2,160 – 2,165 MHz until
2023 of the MoCI March 28, 2026.
Decree No. 806 Year 2019 of the MoCI granted the extension of the radio frequency license for
MoCI amd. Decree No. 76 Year band 1,965 – 1,970 MHz paired with 2,155 – 2,160 MHz until
2023 of the MoCI September 30, 2029.
Decree No. 479 Year 2022 of the Telkomsel as the winner of auction and granted to utilize the
MoCI amd. Decree No. 76 Year radio frequency license for band 1,960 – 1,965 MHz paired
2023 of the MoCI with 2,150 – 2,155 MHz effective from January 11, 2023.
Telkomsel paid the initial license fee amounting Rp1,21 trillion.
3. Radio frequency for band up to 2.3 GHz
License No. Description
Decree No. 1896 Year 2017 of Telkomsel as the winner to utilize the radio frequency license
the MoCI for band 2,300 – 2,330 Mhz, Telkomsel paid the annual BHP
IPFR amounting to Rp1,01 trillion until 2026.
Decree No. 178 Year 2021 of the Telkomsel as the winner to utilize the radio frequency license
MoCI for band 2,330 – 2,340 MHz paired with 2,340 – 2,350 MHz for
Block A and Block C, respectively until 2030.
Decree No. 487 Year 2022 of the On November 18, 2022, Telkomsel received a right to use
MoCI amd. Decree No. 92 Year reallocated radio frequency license for band 2,340 – 2,355
2023 of the MoCI MHz paired with 2,330 – 2,360 MHz.
Decree No. 188 Year 2023 of the On April, 2023, Telkomsel granted an approval to allocate part
MoCI of the rights-of-use of 2.3 GHz radio frequency spectrum to
PT Smart Telecom Tbk.
(ii) Radio frequency spectrum cooperation agreement
The MoCI has given approval to Telkomsel for a cooperation on the use of radio frequency
spectrum with PT KCIC through a letter No. B-171/M.KOMINFO/SP.01.01/03/2023 dated
17 March 2023, regarding the Cooperation Agreement on the Use of Radio Frequency
Spectrum in the range of 891 – 895 MHz paired with 936 – 940 MHz, with a period up to
December 14, 2030.
As result from this agreement, PT KCIC shall pay to the Company several compensations,
which are annual utilization fees totaling Rp878.10 billion, network recovery fee of
Rp1.25 trillion, as well as incremental operational and maintenance costs.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(ii) Radio frequency spectrum cooperation agreement (continued)
As of September 30, 2023, the Company has recognized the installment of network recovery
fees and annual utilization fees amounting to Rp1.1 trillion and Rp99.00 billion
(iii) Receivable under non-cancelable lease agreements
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 2023 and 2032. Periods
may be extended based on the agreement by both parties.
The minimum amount of future lease payments and receipts for operating lease agreements
are as follows:
September 30, 2023 December 31, 2022
Less than 1 year 2,768 2,582
1-5 years 9,280 8,354
More than 5 years 5,851 5,107
Total 17,899 16,043
(iv) USO
On December 27, 2011, Telkomsel (on behalf of Konsorsium Telkomsel, a consortium which
was established with Mitratel on December 9, 2011) was selected by Balai Penyedia dan
Pengelola Pembiayaan Telekomunikasi dan Informatika (“BPPPTI”), now has been renamed
as Badan Aksesibilitas Telekomunikasi dan Informasi (“BAKTI”) as a provider of the USO
Program in the border areas 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 BAKTI to pay compensation to Telkomsel amounting to Rp218 billion, and as of
the date of the issuance of these consolidated financial statements Telkomsel has received
the payment from BAKTI amounting to Rp91 billion (before tax) and no additional payment.
The MoCI issued Regulation No. 5 Year 2021 dated March 31, 2021 which replaced 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.
Based on Decree No. 827/KOMINFO/BAKTI.31/KS.1/10/2021 dated October 4, 2021 of BAKTI
granted Telkomsel as operating cooperation partners (“KSO”) for eight packages KSO, which
cover Nusa Tenggara, Kalimantan, Sulawesi, Maluku, West Papua, West Central Papua,
North Central Papua and South East Papua for period from 2021 until 2031.
104
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
36. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
September 30, 2023
U.S Dollar Japanese Yen Others* Rupiah equivalent
(in millions) (in millions) (in millions) (in billions)
Assets
Cash and cash equivalents 249.84 5.72 16.03 4,116
Other current financial assets 26.34 - - 409
Trade receivables
Related parties 0.27 - - 5
Third parties 99.11 - 12.06 1,726
Contract assets 26.71 - - 415
Other receivables 0.75 - 1.10 29
Other current assets 1.33 - 0.46 28
Long-term investment in financial instruments 393.27 - 8.83 6,215
Other non-current assets 0.49 - 0.54 17
Total assets 798.11 5.72 39.02 12,960
Liabilities
Trade payables
Related parties (0.16) - - (2)
Third parties (131.41) (1.36) (4.62) (2,111)
Other payables (1.71) - (1.00) (42)
Accrued expenses (34.32) (12.47) (1.16) (551)
Advances from customers (6.41) - (0.11) (101)
Current maturities of long-term borrowings (10.76) (767.90) (5.10) (326)
Long-term borrowings - net of current maturities (13.94) (383.95) (26.64) (669)
Other liabilities (2.00) - (18.44) (39)
Total liabilities (200.71) (1,165.68) (57.07) (3,841)
Assets (liabilities) - net 597.40 (1,159.96) (18.05) 9,119
December 31, 2022
U.S Dollar Japanese Yen Others* Rupiah equivalent
(in millions) (in millions) (in millions) (in billions)
Assets
Cash and cash equivalents 261.09 5.74 13.60 4,298
Other current financial assets 27.06 - 0.02 427
Trade receivables
Related parties 0.47 - - 7
Third parties 86.06 - 8.24 1,481
Contract assets 30.91 - - 486
Other receivables 0.92 - 1.11 32
Other current assets 0.30 - 0.46 13
Long-term investment in financial instruments 372.84 - 6.22 5,907
Other non-current assets 0.43 - 0.55 17
Total assets 780.08 5.74 30.20 12,668
Liabilities
Trade payables
Related parties (0.13) - - (2)
Third parties (104.25) (25.34) (5.82) (1,728)
Other payables (1.58) - (2.93) (70)
Accrued expenses (39.41) (5.21) (2.31) (657)
Advances from customers (2.39) - (0.11) (38)
Current maturities of long-term borrowings (15.78) (767.90) (4.72) (413)
Long-term borrowings – net of current maturities (24.75) (767.90) (30.60) (958)
Other liabilities (2.00) - - (33)
Total liabilities (190.29) (1,566.35) (46.49) (3,899)
Assets (liabilities) - net 589.79 (1,560.61) (16.29) 8,769
*Assets and liabilities denominated in other foreign currencies are presented as U.S. Dollar equivalents using the buy and sell rates quoted by
Reuters prevailing at the end of the reporting period.
The Group’s activities expose them to a variety of financial risks, including the effects of changes in
debt and equity market prices, foreign currency exchange rates, and interest rates.
105
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS
a. Fair value of financial assets and financial liabilities
i. Classification
(a) Financial asset
September 30, 2023 December 31, 2022
Amortized cost
Cash and cash equivalents 25,905 31,947
Other current financial assets 1,477 1,268
Trade receivables 9,895 8,634
Other receivables 576 245
Other non-current assets 164 186
FVTPL
Long-term investment in financial instruments 8,581 8,508
Other current financial assets 296 81
FVTOCI
Long-term investment in financial instruments 22 22
Total financial assets 46,916 50,891
(b) Financial liabilities
September 30, 2023 December 31, 2022
Financial liabilities measured at amortized cost
Trade payables 13,445 18,457
Other payables 477 463
Accrued expenses 13,044 15,445
Customers deposits 10 44
Short-term bank loans 11,796 8,191
Two-step loans 132 209
Bonds and notes 5,342 4,793
Long-term bank loans 32,366 29,873
Other borrowings 482 1,314
Lease liabilities 18,881 18,661
Total financial liabilities 95,975 97,450
ii. Fair values
The following table presents comparison of the carrying amounts and fair values of the
Company’s financial instruments, other than those the fair values are considered to approximate
their carrying amounts as the impact of discounting is not significant:
Fair value measurement at reporting date using
Quoted prices in
active markets Significant
for identical other Significant
assets or observable unobservable
Carrying liabilities inputs inputs
September 30, 2023 value Fair value (level 1) (level 2) (level 3)
FVTPL
Other current financial assets 296 296 296 - -
Long-term investment in financial instruments 8,581 8,581 2,022 - 6,559
FVTOCI
Long-term investment in financial instruments 22 22 - - 22
Financial liabilities at amortized cost
Interest-bearing loans and other borrowings:
Two-step loans 132 133 - - 133
Bonds and notes 5,342 6,104 5,575 - 529
Long-term bank loans 32,366 31,941 - - 31,941
Other borrowings 482 478 - - 478
Lease liabilities 18,881 18,881 - - 18,881
Total 66,102 66,436 7,893 - 58,543
106
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
a. Fair value of financial assets and financial liabilities (continued)
ii. Fair values (continued)
The following table presents comparison of the carrying amounts and fair values of the
Company’s financial instruments, other than those the fair values are considered to approximate
their carrying amounts as the impact of discounting is not significant (continued):
Fair value measurement at reporting date using
Quoted prices in
active markets Significant
for identical other Significant
assets or observable unobservable
Carrying liabilities inputs inputs
December 31, 2022 value Fair value (level 1) (level 2) (level 3)
FVTPL
Other current financial assets 81 81 81 - -
Long-term investment in financial instruments 8,508 8,508 2,172 - 6,336
FVTOCI
Long-term investment in financial instruments 22 22 - - 22
Financial liabilities at amortized cost
Interest-bearing loans and other borrowings:
Two-step loans 209 207 - - 207
Bonds 4,793 5,614 5,614 - -
Long-term bank loans 29,873 29,860 - - 29,860
Other borrowings 1,314 1,311 - - 1,311
Lease liabilities 18,661 18,661 - - 18,661
Other liabilities 170 170 - - 170
Total 63,631 64,434 7,867 - 56,567
As of December 31, 2022, there was a transfer of the fair value hierarchy of financial assets
from level 2 and level 3 to level 1 with the consideration that there was a quoted price in an
active market condition for identical assets that could be accessed on the measurement date.
Therefore, these financial assets can be categorized as level 1. These financial assets are
long-term investments in shares in GOTO of Rp2,159 billion and in PT Global Sukses
Solusi Tbk. of Rp13 billion.
Loss on fair value measurement recognized in consolidated statements of profit or loss and
other comprehensive income for the nine months period ended September 30, 2023 amounting
to Rp93 billion.
Reconciliations of the beginning and ending balances for items measured at fair value using
significant unobservable inputs (level 3) for the nine months period ended September 30, 2023
and for the years ended December 31, 2022 are as follows:
September 30, 2023 December 31, 2022
Beginning balance 6,358 4,762
Gain (loss) recognized in consolidated statement
of profit or loss and other comprehensive income (93) 282
Purchase/addition 316 1,338
Settlement/deduction - (24)
Ending balance 6,581 6,358
107
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
a. Fair value of financial assets and financial liabilities (continued)
iii. 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 (other non-current assets (long-term trade
receivables and restricted cash)) 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:
(a) Fair value through profit or loss, 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 at the reporting date.
(b) 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 judgemental and involve various limitations, including:
(a) Fair values presented do not take into consideration the effect of future currency
fluctuations.
(b) Estimated fair values are not necessarily indicative of the amounts that the Group would
record upon disposal/termination of the financial assets and liabilities.
b. Financial risk management objectives and policies
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.
i. Foreign exchange risk
The Group is exposed to foreign exchange risk on sales, purchases and borrowings that are
denominated in foreign currencies. The foreign currency denominated transactions are
primarily in U.S. Dollars and Japanese Yen. The Group’s exposures to other foreign exchange
rates are not material.
108
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
b. Financial risk management objectives and policies (continued)
i. Foreign exchange risk (continued)
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 presents the Group’s financial assets and financial liabilities exposure to
foreign currency risk:
September 30, 2023 December 31, 2022
U.S. Dollar Japanese Yen U.S. Dollar Japanese Yen
(in billions) (in billions) (in billions) (in billions)
Financial assets 0.80 0.01 0.78 0.01
Financial liabilities (0.20) (1.17) (0.19) (1.57)
Net exposure 0.60 (1.16) 0.59 (1.56)
Sensitivity analysis
A strengthening of the U.S. Dollar and Japanese Yen, as indicated below, against the Rupiah
at September 30, 2023 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)
September 30, 2023
U.S. Dollar (1% strengthening) 92
Japanese Yen (5% strengthening) (6)
A weakening of the U.S. Dollar and Japanese Yen against the Rupiah at September 30, 2023,
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.
ii. 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 and losses arising from changes in the fair
value of financial assets measured at FVTPL are recognized 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 September 30, 2023, 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.
109
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
b. Financial risk management objectives and policies (continued)
iii. 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:
September 30, 2023 December 31, 2022
Fixed rate borrowings (38,560) (27,767)
Variable rate borrowings (30,439) (35,274)
Sensitivity analysis for variable rate borrowings
As of September 30, 2023, a decrease (increase) by 25 basis points in interest rates of variable
rate borrowings would have increased (decreased) equity and profit or loss by Rp76 billion,
respectively. The analysis assumes that all other variables, in particular foreign currency rates,
remain constant.
iv. Credit risk
The following table presents the maximum exposure to credit risk of the Group’s financial
assets:
September 30, 2023 December 31, 2022
Cash and cash equivalents 25,905 31,947
Other current financial assets 1,773 1,349
Trade receivable 9,895 8,634
Other receivable 576 245
Other non-current assets 164 186
Total 38,313 42,361
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 3.69% of trade receivables as of September 30,
2023. (December 31, 2022: 4.33%)
Management is confident in its ability to continue to control and sustain minimal exposure to
the customer credit risk given that the Group has recognized sufficient provision for impairment
of receivables to cover incurred loss arising from uncollectible receivables based on existing
historical data on credit losses.
110
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
b. Financial risk management objectives and policies (continued)
v. 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 2027 and
amount cash flows 2023 2024 2025 2026 thereafter
September 30, 2023
Trade and other payables 13,445 (13,445) (13,445) - - - -
Trade and other payables 477 (477) (477) - - - -
Accrued expenses 13,044 (13,044) (13,044) - - - -
Customer deposits 10 (10) (10) - - - -
Interest bearing loans and
other borrowings:
Short-term bank loans 11,796 (11,796) (11,796) - - - -
Two-step loans 132 (137) (96) (41) - - -
Bonds and notes 5,342 (10,299) (1,094) (128) (2,574) (293) (6,210)
Long-term bank loans 32,366 (38,553) (12,969) (1,993) (7,633) (6,094) (9,864)
Other borrowings 482 (495) (495) - - - -
Lease liabilities 18,881 (21,474) (6,363) (820) (2,930) (2,556) (8,805)
Total 95,975 (109,730) (59,789) (2,982) (13,137) (8,943) (24,879)
Carrying Contractual 2026 and
amount cash flows 2023 2024 2025 2026 thereafter
December 31, 2022
Trade and other payables 18,457 (18,457) (18,457) - - - -
Trade and other payables 463 (463) (463) - - - -
Accrued expenses 15,445 (15,445) (15,445) - - - -
Customer deposits 44 (44) (44) - - - -
Interest bearing loans and
other borrowings:
Short-term bank loans 8,191 (8,191) (8,191) - - - -
Two-step loans 209 (216) (123) (93) - - -
Bonds and notes 4,793 (10,096) (509) (510) (2,574) (293) (6,210)
Long-term bank loans 29,873 (36,301) (10,020) (8,346) (6,871) (4,874) (6,190)
Other borrowings 1,314 (1,394) (1,027) (367) - - -
Lease liabilities 18,661 (22,053) (5,893) (4,545) (2,766) (2,258) (6,591)
Other liabilities 170 (196) (20) (44) (44) (44) (44)
Total 97,620 (112,856) (60,192) (13,905) (12,255) (7,469) (19,035)
The difference between the carrying amount and the contractual cash flows is interest value.
The interest value of variable-rate borrowings are determined based on the effective interest
rates as of reporting date.
111
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
38. CAPITAL MANAGEMENT
The capital structure of the Group is as follows:
September 30, 2023 December 31, 2022
Amount Portion Amount Portion
Short-term debts 11,796 5.91% 8,191 4.26%
Long-term debts 57,203 28.64% 54,850 28.52%
Total debts 68,999 34.55% 63,041 32.78%
Equity attributable to owners
of the parent company 130,693 65.45% 129,258 67.22%
Total 199,692 100.00% 192,299 100.00%
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 with 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 September 30, 2023 and December 31, 2022, respectively
were as follows:
September 30, 2023 December 31, 2022
Total interest-bearing debts 68,999 63,041
Less: cash and cash equivalents (25,905) (31,947)
Net debts 43,094 31,094
Total equity attributable to owners of the parent
company 130,693 129,258
Net debt-to-equity ratio 32.97% 24.06%
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 periods ended September 30, 2023 and December 31, 2022,
the Group has complied with externally imposed capital requirements.
112
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
39. SUPPLEMENTAL CASH FLOWS INFORMATION
a. The non-cash investing activities for the nine months ended September 30, 2023 and 2022 are as
follows:
2023 2022
Acquisition of property and equipment:
Credited to trade payables 2,234 3,270
Borrowing cost capitalization 95 37
Addition of right of uses assets credited
to leases (Note 12) 7,853 7,055
Acquisition of intangible assets:
Credited to trade payables 391 492
b. The changes in liabilities arising from financing activities is as follows:
Non-cash changes
Foreign
exchange Other
January 1, 2023 Cash flows movement New leases Changes September 30, 2023
Short-term bank loans 8,191 3,605 - - - 11,796
Two step loans 209 (65) (12) - - 132
Bonds and notes 4,793 550 - - (1) 5,342
Long-term bank loans 29,873 2,492 (17) - 18 32,366
Other borrowings 1,314 (834) - - 2 482
Lease liabilities 18,661 (4,556) (11) 7,853 (3,066) 18,881
Total liabilities from
financing activities 63,041 1,192 (40) 7,853 (3,047) 68,999
40. SUBSEQUENT EVENTS
a. On October 9 and October 18, 2023, Telkomsel has paid the entire outstanding short-term and
medium-term loans due to MUFG, BJB and BCA amounting to Rp3,500 billion.
b. On October 17, 2023, Telkomsel has received a loan drawdown from BCA amounting to Rp1,000
billion.
c. As of October 30, 2023, the market value of GOTO shares is Rp56.00 per share, therefore
unrealized loss from changes in the fair value of investment in GOTO would increase by IDR 688
billion.
113
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