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Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. and its subsidiaries Consolidated financial statements as of June 30, 2023 and for the six months period then ended (unaudited)
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PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2023 AND FOR THE SIX 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 6-111
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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
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of June 30, 2023 (unaudited) and December 31, 2022 (audited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
Notes June 30, 2023 December 31, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents - net 3,32,37 40,521 31,947
Other current financial assets - net 4,32,37 1,402 1,349
Trade receivables - net allowance for expected
credit losses
Related parties 5,32,37 1,763 1,620
Third parties 5,37 8,388 7,014
Contract assets - net 6,32,37 2,249 2,457
Other receivables - net 37 1,419 245
Inventories - net 7 1,118 1,144
Assets held for sale 11b 6 6
Contract cost 9 697 671
Prepaid taxes 27a 2,359 1,464
Claim for tax refund 27b 3 380
Other current assets 8,32 5,965 6,760
Total Current Assets 65,890 55,057
NON-CURRENT ASSETS
Contract assets - net 6,32,37 110 34
Long-term investments 10,37 9,218 8,653
Contract cost 9 1,973 1,741
Property and equipment 11,32,35a 175,471 173,329
Right-of-use assets 12 20,673 20,336
Intangible assets 14 8,105 8,302
Deferred tax assets - net 27f 4,005 4,117
Other non-current assets 13,27,32,37 5,033 3,623
Total Non-current Assets 224,588 220,135
TOTAL ASSETS 290,478 275,192
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables
Related parties 15,32,37 533 431
Third parties 15,37 14,837 18,026
Contract liabilities 17a,32 7,189 6,295
Other payables 37 16,075 463
Taxes payable 27c 5,563 5,372
Accrued expenses 16,32,37 13,717 15,445
Customer deposits 32 2,846 2,382
Short-term bank loans 18a,32,37 15,129 8,191
Current maturities of long-term
loans and other borrowings 18b,32,37 14,226 8,858
Current maturities of lease liabilities 12,37 5,235 4,925
Total Current Liabilities 95,350 70,388
NON-CURRENT LIABILITIES
Deferred tax liabilities - net 27f 1,029 1,023
Contract liabilities 17b,32 1,464 1,561
Long service award provisions 31 1,111 1,031
Pension benefits and other post-employment
benefits obligations 30 11,142 10,272
Long-term loans and other borrowings 19,32,37 26,503 27,331
Lease liabilities 12,37 13,257 13,736
Other liabilities 271 588
Total Non-current Liabilites 54,777 55,542
TOTAL LIABILITIES 150,127 125,930
EQUITY
Capital stock 21 4,953 4,953
Additional paid-in capital 2,711 2,711
Other equity 22 9,558 9,697
Retained earnings
Appropriated 29 15,337 15,337
Unappropriated 91,286 96,560
Net equity attributable to:
Owners of the parent company 123,845 129,258
Non-controlling interest 20 16,506 20,004
TOTAL EQUITY 140,351 149,262
TOTAL LIABILITIES AND EQUITY 290,478 275,192
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 Six Months Period Ended June 30, 2023 and 2022 (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
Notes 2023 2022
REVENUES 23,32 73,478 71,983
COST AND EXPENSES
Operation, maintenance, and telecommunication
service expenses 25,32 (19,170) (17,847)
Depreciation and amortization expenses 11,12,14 (15,948) (16,986)
Personnel expenses 24 (7,844) (7,526)
General and administrative expenses 26,32 (3,331) (2,820)
Interconnection expenses 32 (3,093) (2,647)
Marketing expenses 32 (1,656) (1,696)
Unrealized gain on changes in fair value of investments 10 412 294
Other income - net 283 57
(loss) gain on foreign exchange - net (112) 124
OPERATING PROFIT 23,019 22,936
Finance income 32 526 441
Finance cost 32 (2,245) (1,953)
Share of profit of long-term investment in associates 10 2 5
PROFIT BEFORE INCOME TAX 21,302 21,429
INCOME TAX (EXPENSE) BENEFIT 27d
Current (4,106) (4,611)
Deferred (375) 737
(4,481) (3,874)
PROFIT FOR THE PERIOD 16,821 17,555
OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income (loss) to be reclassified to profit
or loss in subsequent periods:
Foreign currency translation 22 (139) 141
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 (1,428) (1)
Other comprehensive income (loss) - net (1,567) 141
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 15,254 17,696
Profit for the period attributable to:
Owners of the parent company 12,756 13,310
Non-controlling interests 20 4,065 4,245
16,821 17,555
Total comprehensive income for the period attributable to:
Owners of the parent company 11,189 13,451
Non-controlling interests 4,065 4,245
15,254 17,696
BASIC EARNINGS PER SHARE
(in full amount) 28
Net income per share 128.77 134.36
Net income per ADS (100 Series B shares per ADS) 12,876.76 13,436.00
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 Six Months Period Ended June 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
Changes in non-controlling interest - - - - - - 26 26
Cash dividend 29 - - - - (16,602) (16,602) (7,582) (24,184)
Repurchase of non-controlling interest shares 1e - - - - - - (7) (7)
Profit for the year 20 - - - - 12,756 12,756 4,065 16,821
Other comprehensive income - net - - (139) - (1,428) (1,567) - (1,567)
Balance, June 30, 2023 4,953 2,711 9,558 15,337 91,286 123,845 16,506 140,351
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 Six Months Period Ended June 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 - - - - - - 11 11
Cash dividends 29 - - - - (14,856) (14,856) (7,534) (22,390)
Treasury stock - - - - - - (82) (82)
Profit for the period 20 - - - - 13,310 13,310 4,245 17,555
Other comprehensive income - net - - 141 - - 141 - 141
Balance, June 30, 2022 4,953 2,711 9,536 15,337 87,704 120,241 20,438 140,679
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 Six Months Period Ended June 30, 2023
(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 71,175 70,244
Cash receipts from finance income 522 443
Cash receipts from tax refund 97 2,281
Cash payments for expenses (26,753) (20,966)
Cash payments to employees (9,491) (7,821)
Cash payments for corporate and final income taxes (5,635) (4,919)
Cash payments for finance costs (2,291) (1,977)
Cash payments for short-term and low-value lease assets 12 (1,650) (1,429)
Cash payments for value added taxes - net (517) (639)
Cash receipts from (payments for) others - net 163 (273)
Net cash provided by operating activities 25,620 34,944
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from insurance claims 11 151 135
Proceeds from sale of property and equipment 11 24 296
Dividend received from associated company 10 - 10
Purchase of property and equipment 11,39 (14,690) (16,378)
Acquisition of tower by subsidiary (1,648) -
Purchase of intangible assets 14,39 (962) (1,275)
Increase (decrease) in advances and other assets 13 (257) 653
Addition of long-term investment in financial instrument 10 (228) (1,048)
(Placement in) proceeds from other current financial assets - net (59) 38
Net cash used in investing activities (17,669) (17,569)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans and other borrowings 18,19 21,045 23,932
Proceeds from issuance of new shares of subsidiaries - 45
Repayments of loans and other borrowings 18,19 (9,546) (15,231)
Cash dividend paid to the Company's stockholders 21 - (14,856)
Cash dividend paid to non-controlling interests of subsidiaries 20 (7,581) (7,534)
Repayments of principal portion of lease liabilities (3,113) (2,063)
Placement in shares buyback from non-controlling interest
by subsidiary 1e (7) -
Net cash used in financing activities 798 (15,707)
NET INCREASE IN CASH AND CASH EQUIVALENTS 8,749 1,668
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS (174) 181
ALLOWANCE FOR EXPECTED CREDIT LOSSES (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 40,521 40,160
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 June 30, 2023 and For the Six 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 June 30, 2023 and For the Six 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 June 30, 2023 and For the Six 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:
30 Juni 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:
June 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 June 30, 2023 and For the Six 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 June 30, 2023 and December 31, 2022, the Company and its subsidiaries (collectively
referred to as “the Group”) had 20,879 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 June 30, 2023 and For the Six 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 June 30, 2023, all of the Company’s Series B shares are listed on the IDX and 38,801,544
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 June 30, 2023 and For the Six 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 June 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 June 30, December 31, June 30, December 31,
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Telekomunikasi Mobile telecommunication 1995 65 65 98,235 100,991
Selular networks and service
(“Telkomsel”)
PT Dayamitra Leasing of towers 1995 72 72 56,790 56,072
Telekomunikasi Tbk. and other
(“Mitratel”) telecommunication
services
PT Multimedia Network telecommunication 1998 100 100 19,099 18,710
Nusantara service and
(“Metra”) multimedia
PT Telekomunikasi International 1995 100 100 13,794 13,949
Indonesia telecommunication and
International information services
(“Telin”)
PT Sigma Cipta Consultation service of 1988 100 100 7,935 8,522
Caraka hardware, computer
(“Sigma”) software, and
data center
PT Telkom Satelit Telecommunication - 1996 100 100 6,896 6,470
Indonesia provides satellite
(“Telkomsat”) communication system
and its related services
and infrastructures
PT Graha Sarana Duta Developer, trade, service, 1982 100 100 5,918 5,865
("GSD") and transportation
PT Telkom Akses Construction, service 2013 100 100 4,601 5,308
(“Telkom Akses”) and trade in the field
of telecommunication
PT Telkom Data Data center 1996 100 100 3,400 3,202
Ekosistem
(“TDE”)
PT Metra-Net Multimedia portal service 2009 100 100 1,714 1,731
(“Metra-Net”)
PT Infrastruktur Construction, service 2014 100 100 1,495 1,360
Telekomunikasi and trading in
Indonesia the field of
(“Telkom Infra”) telecommunication
PT PINS Indonesia Telecommunication 1995 100 100 814 797
(“PINS”) construction and
services
PT Napsindo Telecommunication - 1999; ceased 60 60 5 5
Primatel provides Network operations on
Internasional Access Point ("NAP"), January 13,
(“Napsindo”) Voice Over Data 2006
("VOD"), and other
related services
*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 June 30, 2023 and For the Six 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 June 30, December 31, June 30, December 31,
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Metra Digital Trading service related 2013 100 100 9,097 9,019
Investama to information and
(“MDI”) technology,
multimedia,
entertainment,
and investment
Telekomunikasi Investment holding and 2010 100 100 3,479 2,981
Indonesia telecommunication
International Ltd. services
("Telin Hong Kong"),
domiciled in
Hong Kong
Telekomunikasi Telecommunication 2008 100 100 3,370 3,678
Indonesia and related
International Pte. Ltd. services
("Telin Singapore"),
domiciled in
Singapore
PT Infomedia Data and information 1984 100 100 2,370 2,268
Nusantara service - provides
(“Infomedia”) telecommunication
information services
and other information
services in the form
of print and electronic
media and call
center services
PT Telkom Landmark Property development 2012 55 55 2,062 2,100
Tower and management
(“TLT”) services
PT Persada Sokka Leasing of towers and 2008 100 100 1,545 1,401
Tama other telecommunication
("PST") services
PT Finnet Indonesia Information technology 2006 60 60 1,533 1,248
(“Finnet”) services
PT Nuon Digital Digital content 2010 100 100 1,241 1,199
Indonesia exchange hub
(“Nuon”) services
PT Metra Digital Telecommunication 2013 100 100 964 986
Media information and
(“MD Media”) other information
services
PT Telkomsel Mitra Business management 2019 100 100 912 945
Inovasi consulting and
(“TMI”) investment services
PT Telkomsel Provides service related 2021 100 100 874 807
Ekosistem Digital to information and
("TED") technology,
multimedia,
entertainment, and
investment
Telekomunikasi Telecommunication 2012 100 100 821 836
Indonesia networks, mobile,
International (TL) S.A. internet, and
("Telkomcel"), data services
domiciled in
Timor Leste
*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 June 30, 2023 and For the Six 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 June 30, December 31, June 30, December 31,
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Administrasi Health insurance 2002 100 100 706 632
Medika administration
(“Ad Medika”) services
PT Swadharma Cash replenishment 2001 51 51 452 458
Sarana Informatika services and
(“SSI”) ATM maintenance
TS Global Satellite services 1996 70 70 417 566
Network Sdn. Bhd.
(“TSGN”),
domiciled in Malaysia
PT Digital Aplikasi Communication system 2014 100 100 357 384
Solusi services
("Digiserve")
PT Nusantara Sukses Service and trading 2014 100 100 305 301
Investasi
(“NSI”)
PT Graha Yasa Selaras Tourism service 2012 51 51 285 285
(”GYS”)
Telekomunikasi Telecommunication and 2014 100 100 282 294
Indonesia information services
International Inc.
(“Telin USA”),
domiciled in USA
PT Nutech Integrasi System integrator 2001 60 60 223 273
(“Nutech”) service provider
PT Graha Telkomsigma Management and 1999 100 100 222 190
("GTS") consultation services
PT Collega Inti Pratama Trading and services 2001 70 70 193 173
("CIP")
Telekomunikasi Telecommunication and 2013 70 70 139 125
Indonesia Intl information services
(Malaysia) Sdn. Bhd.
(”Telin Malaysia”),
domiciled in Malaysia
PT Media Nusantara Consultation services 2012 55 55 123 116
Data Global
("MNDG")
PT Teknologi Data Telecommunication service 2013 100 100 112 7
Infrastruktur and data center
(“TDI”)
Telekomunikasi Telecommunication and 2013 100 100 87 33
Indonesia information services
International
(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 June 30, 2023 and For the Six 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 June 30, December 31, June 30, December 31,
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Bosnet Distribution Trade and consultation 2012 60 60 39 36
Indonesia services
(“BDI”)
PT Pojok Celebes Travel agent services 2008 100 100 31 33
Mandiri
("PCM")
PT Metraplasa Network and e-commerce 2012 60 60 30 30
(“Metraplasa”) 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 significant information
i. The Company
On June 27, 2023, the Company signed the Spin-off Decree of IndiHome Business to Telkomsel
that has been approved by AGMS on June 23, 2023. The value of IndiHome Business Segment
to be transferred is Rp58,250 billion. In parellel, 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%, and Singtel’s stake in Telkomsel becomes 30.1%. The increase in Telkomsel’s Capitals
is expected to be 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 June 30, 2023 amounting to
10,350,000 shares or equivalent to Rp7 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.
On March 1, 2023, the signing deed of transfer between Mitratel and Indosat has been signed.
The calculation of the Purchase Price Allocation ("PPA") is still being processed by KJPP
Nirboyo, Dewi Apriyanti and Partners, as independent appraisers.
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 July 28, 2023.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
Figures in the tables of the consolidated financial statements are presented and rounded to billions
of Indonesian rupiah (“Rp”) and millions of US$, unless otherwise stated. Figures in the
consolidated financial statements which still contain values but below Rp1 billion and US$ 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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. The considerations made
in determining significant influence are similar to those necessary to determine control over
subsidiaries. Holding of 20% or more of the voting power of the investee (held directly or indirectly,
through subsidiaries) is presumed to give rise to significant influence, unless it can be clearly
demonstrated that this is not the case. Conversely, a holding of less than 20% of the voting power
is presumed not to give rise to significant influence, unless it can be clearly demonstrated that there
is in fact significant influence.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
f. Investments in associates (continued)
The existence of significant influence will usually be evidenced in one or more of the following ways:
i. representation on the boards of directors and commissioners or equivalent governing body of
the investee;
ii. participation in policy-making processes, including participation in decisions about dividends
and other distributions;
iii. material transactions between the investor and the investee;
iv. interchange of managerial personnel;
v. provision of essential technical information.
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).
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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 and depreciation on such assets is ceased.
k. Intangible assets
Intangible assets mainly consist of software. Intangible assets are recognized if it is highly probable
that the expected future economic benefits that are attributable to each asset will flow to the Group,
and the cost of the asset can be reliably measured.
Intangible assets are stated at cost less accumulated amortization and impairment losses, if any.
Intangible assets are amortized over their estimated useful lives. The 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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).
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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
The functional currency and the reporting currency of the Group are both in Indonesian rupiah,
except for the functional currency of Telekomunikasi Indonesia International Ltd., Hong Kong,
Telekomunikasi Indonesia International Pte. Ltd., Singapore, Telekomunikasi Indonesia
International Inc., USA and Telekomunikasi Indonesia International S.A., Timor Leste whose
functional currency is maintained in U.S. Dollar and Telekomunikasi Indonesia International, Pty.
Ltd., Australia whose functional currency is Australian Dollar, TS Global Network Sdn. Bhd., and
Telekomunikasi Indonesia International Sdn. Bhd. whose functional currency is Malaysian ringgit.
Transactions in foreign currencies are translated into Indonesian rupiah at the rates of exchange
prevailing at transaction date. At the consolidated statements of financial position dates, monetary
assets and liabilities denominated in foreign currencies are translated into Indonesian rupiah based
on the buy and sell rates quoted by Reuters prevailing at the consolidated statements of financial
position dates, as follows (in full amount):
June 30, 2023 December 31, 2022
Buy Sell Buy Sell
United States Dollar (“US$”) 1 14,990 14,997 15,567 15,571
Australian Dollar (“AU$”) 1 10,025 10,030 10,583 10,589
Singapore Dollar (“SGD”) 1 11,108 11,112 11,614 11,622
New Taiwan Dollar (“TWD”) 1 482.80 483.12 508.15 508.47
Euro (“EUR”) 1 16,398 16,405 16,623 16,635
Japanese Yen ("JPY") 1 104.29 104.35 118.12 118.17
Malaysian Ringgit ("MYR") 1 3,211 3,216 3,529 3,539
Hong Kong Dollar (“HKD”) 1 1,914 1,914 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).
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
s. Employee benefits (continued)
ii. Post-employment benefit plans and other long-term employee benefits (continued)
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.
iv. Early retirement benefits
Early retirement benefits are accrued at the time the Group makes a commitment to provide
early retirement benefits as a result of an offer made in order to encourage voluntary
redundancy. A commitment to a termination arises when, and only when a detailed formal plan
for the early retirement cannot be withdrawn.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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 June 30, 2023 and December 31, 2022.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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”).
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT 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
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS - NET
June 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 - 6,718 - 6,413
US$ 33 491 49 758
EUR 2 35 2 34
HKD 2 3 3 5
JPY 6 1 6 1
AU$ 0 0 0 0
PT Bank Rakyat Indonesia (Persero) Tbk. (“BRI”) Rp - 6,875 - 2,691
US$ 11 166 11 179
TWD 0 0 - -
PT Bank Negara Indonesia (Persero) Tbk. (“BNI”) Rp - 5,452 - 4,298
US$ 12 174 7 111
SGD 0 0 0 0
EUR 0 0 0 0
PT Bank Tabungan Negara (Persero) Tbk. ("BTN") Rp - 5,331 - 2,713
Others Rp - 45 - 230
US$ - - 0 0
Sub-total 25,291 17,433
Third parties
PT Bank CIMB Niaga Tbk. (”Bank CIMB Niaga”) Rp - 964 - 1,379
US$ 9 135 0 5
The Hongkong and Shanghai Banking Corporation
Ltd. ("HSBC Hongkong") US$ 67 1,003 55 861
HKD 31 59 5 10
PT Bank Permata Tbk. (“Bank Permata”) Rp - 361 - 412
DBS Bank (Hong Kong) Ltd. ("DBS Hong Kong") US$ 20 301 0 0
HKD 0 0 0 0
PT Bank Permata Tbk. (“Permata Syariah”) Rp - 201 - 0
JPMorgan Chase & Co. US$ 10 153 9 140
Bank Pembangunan Daerah ("BPD") Rp - 103 - 75
Others Rp - 239 0 330
US$ 16 242 24 375
SGD 6 70 7 82
TWD 32 16 58 29
AU$ 2 21 2 23
MYR 3 10 5 17
MMK 363 3 386 3
EUR 0 0 0 0
Sub-total 3,881 3,741
Total of cash in banks 29,172 21,174
Time deposits
Related parties
BNI Rp - 1,142 - 378
US$ 25 382 9 145
BRI Rp - 977 - 845
US$ 10 149 21 319
BTN Rp - 860 - 1,655
PT Bank Syariah Indonesia Tbk. (“BSI”) Rp - 598 - 1,220
Bank Mandiri Rp - 166 - 844
US$ 26 385 31 489
Sub-total 4,659 5,895
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 June 30, 2023 and For the Six 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)
June 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 Mega Tbk. (“Bank Mega”) Rp - 1,814 - 1,986
US$ 12 173 12 181
PT Bank Pembangunan Daerah Jawa Barat dan
Banten Tbk. (“BJB”) Rp - 1,507 - 1,423
BPD Rp - 1,129 - 25
PT Bank Maybank Indonesia Tbk. ("Maybank") Rp - 279 - 220
US$ 34 514 14 224
MYR - - 2 6
PT Bank Muamalat Indonesia Tbk. Rp - 400 - 295
PT Bank Danamon Indonesia Tbk
(“Bank Danamon”) Rp - - - 40
US$ 21 318 9 133
Bank CIMB Niaga Rp - 209 - 122
US$ - - 11 168
Bank Permata Rp - 150 - -
PT Bank Tabungan Pensiunan Nasional Tbk.
("BTPN") US$ 5 75 - -
Others Rp - 52 - 45
US$ 2 24 - -
Sub-total 6,644 4,868
Total of time deposits 11,303 10,763
Allowance for credit expectation losses (1) (1)
Total 40,521 31,947
Interest rates per annum on time deposits are as follows:
June 30, 2023 December 31, 2022
Rupiah 1.95% - 6.50% 1.95% - 6.50%
Foreign currency 2.50% - 4.90% 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
4. OTHER CURRENT FINANCIAL ASSETS
June 30, 2023 December 31, 2022
Balance Balance
Foreign Foreign
currency Rupiah currency Rupiah
Currency (in millions) equivalent (in millions) equivalent
Time deposit
Related parties
BNI RP - 129 - 80
Bank Mandiri Rp - 40 - 10
US$ 5 75 5 79
Others (each below Rp100 billion) Rp - 137 - 150
Third parties
United Overseas Bank Limited Singapore
(“UOB Singapore”) US$ 12 174 12 182
Standard Chartered Bank (Singapore) Limited
(“SCB Singapore”) US$ 9 128 7 102
Others (each below Rp100 billion) Rp - - - 18
US$ 2 31 2 32
Total time deposits 714 653
Escrow accounts Rp - 297 - 383
US$ 1 18 2 30
Total escrow accounts 315 413
Mutual funds
Related parties
-
Others (each below Rp100 billion) Rp 84 - 81
Third parties
PT Henan Putihrai Asset Management
-
(“HPAM”) Rp 289 - 200
Total mutual funds 373 281
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 1,402 1,349
The time deposits have maturities of more than three months but not more than one year, with interest
rates as follows:
June 30, 2023 December 31, 2022
Rupiah 2.50% - 5.00% 2.50% - 5.00%
Foreign currency 1.95% - 5.41% 1.95% - 5.06%
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 June 30, 2023 and For the Six 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
June 30, 2023 December 31, 2022
State-owned enterprises 2,184 1,985
PT Indonusa Telemedia ("Indonusa") 386 385
Indosat 374 175
Others (each below Rp100 billion) 205 156
Total 3,149 2,701
Allowance for expected credit losses (1,386) (1,081)
Net 1,763 1,620
(ii) Third parties
June 30, 2023 December 31, 2022
Individual and business subscribers 13,882 12,517
Overseas international carriers 1,089 984
Total 14,971 13,501
Allowance for expected credit losses (6,583) (6,487)
Net 8,388 7,014
b. By age
(i) Related parties
June 30, 2023 December 31, 2022
Up to 3 months 1,906 1,522
3 to 6 months 304 183
More than 6 months 939 996
Total 3,149 2,701
Allowance for expected credit losses (1,386) (1,081)
Net 1,763 1,620
(ii) Third parties
June 30, 2023 December 31, 2022
Up to 3 months 8,545 7,116
3 to 6 months 926 481
More than 6 months 5,500 5,904
Total 14,971 13,501
Allowance for expected credit losses (6,583) (6,487)
Net 8,388 7,014
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 June 30, 2023 and For the Six 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
June 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 7,024 795 11.3% 6,964 399 5.7%
Past due up to 3 months 3,427 546 15.9% 1,674 349 20.8%
Past due more than 3 to 6 months 1,230 375 30.5% 664 222 33.4%
Past due more than 6 months 6,439 6,253 97.1% 6,900 6,598 95.6%
Total 18,120 7,969 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 June 30, 2023 and December 31, 2022, the
carrying amounts of trade receivables of the Group considered past due but not impaired
amounted to Rp3,922 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
June 30, 2023 December 31, 2022
Rupiah 3,147 2,694
U.S. Dollar 2 7
Total 3,149 2,701
Allowance for expected credit losses (1,386) (1,081)
Net 1,763 1,620
(ii) Third parties
June 30, 2023 December 31, 2022
Rupiah 13,344 12,020
U.S. Dollar 1,474 1,352
Singapore Dollar 111 89
Others (each below Rp100 billion) 42 40
Total 14,971 13,501
Allowance for expected credit losses (6,583) (6,487)
Net 8,388 7,014
d. Movements in the allowance for expected credit losses
June 30, 2023 December 31, 2022
Beginning balance 7,568 7,802
Allowance for expected credit losses 803 567
Receivables written-off (402) (801)
Ending balance 7,969 7,568
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 June 30, 2023 and For the Six 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 June 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
June 30, 2023 December 31, 2022
Contract assets 2,534 2,610
Allowance for expected credit losses (175) (119)
Net 2.359 2,491
Current portion (2.249) (2,457)
Non-current portion 110 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:
June 30, 2023 December 31, 2022
Components 534 588
SIM cards and prepaid vouchers 297 321
Others (each below Rp100 billion) 343 294
Total 1,174 1.203
Provision for obsolescence (56) (59)
Net 1,118 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 June 30, 2023 and 2022 amounted to Rp349 billion and Rp350 billion, respectively
(Note 25).
There were no inventories have been pledged as collateral under lending agreements as of
June 30, 2023 and December 31, 2022, respectively.
As of June 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 June 30, 2023 and December 31, 2022 amounted to Rp111 billion, respectively.
Management believes the insurance coverage is adequate to cover potential losses of inventories
arising from the insured risks.
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 June 30, 2023 and For the Six 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:
June 30, 2023 December 31, 2022
Prepaid frequency license fees - current
portion (Note 35c.i) 3,463 5,289
Advances 1.064 679
Prepaid salaries 571 218
Others (each below Rp100 billion) 867 574
Total 5,965 6,760
9. CONTRACT COST
Movements of contract costs are as follows:
June 30, 2023
Cost to Cost to
Total
obtain fulfill
At January 1, 2023 1,554 858 2,412
Amortization during the year (187) (1,877) (2,064)
Addition current year 226 2,096 2,322
At June 30, 2023 1,593 1,077 2,670
Current (379) (318) (697)
Non-current 1,214 759 1,973
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 June 30, 2023 and December 31, 2022,
respectively.
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 June 30, 2023 and For the Six 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:
June 30, 2023 December 31, 2022
Financial instruments
At fair value through profit or loss:
Equity 8,200 7,624
Convertible bonds 886 884
At fair value through other comprehensive income:
Equity 22 22
9,108 8,530
Associates
PT Jalin Pembayaran Nusantara ("Jalin") 104 115
Others (each below Rp100 billion) 6 8
110 123
Total long-term investments 9,218 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 June 30, 2023,
Telkomsel assessed the fair value of the investment in GOTO was Rp110 per share. The total
unrealized gain from changes in fair value of Telkomsel’s investment in GOTO as of
June 30, 2023, amounted to Rp451 billion and was presented as unrealized gain 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 Rp203 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 other investments cumulatively as of June 30, 2023 and 2022
was amounting to Rp356 billion and Rp188 billion, 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 June 30, 2023 and For the Six 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/
2022 Additions Deductions Translations June 30, 2023
At cost:
Directly acquired assets
Land rights 1,838 27 - (2) 1,863
Buildings 18,947 175 (5) (98) 19,019
Leasehold improvements 1,571 22 (10) (15) 1,568
Switching equipment 20,083 257 (12) 252 20,580
Telegraph, telex, and data communication
equipment 1,583 - - - 1,583
Transmission installation and equipment 171,106 3,054 (755) 3,362 176,767
Satellite, earth station, and equipment 10,804 37 - (50) 10,791
Cable network 74,695 1,966 (3) 1,100 77,758
Power supply 23,276 262 (171) (114) 23,253
Data processing equipment 20,954 365 (319) 542 21,542
Other telecommunication peripherals 10,402 421 - (24) 10,799
Office equipment 2,625 35 (15) (139) 2,506
Vehicles 605 47 (13) - 639
Other equipment 51 1 - 1 53
Property under construction 4,598 8,371 - (6,045) 6,924
Total 363,138 15,040 (1,303) (1,230) 375,645
Accumulated depreciation and
impairment losses:
Directly acquired assets
Buildings 6,228 311 - (79) 6,460
Leasehold improvements 1,207 72 (10) (30) 1,239
Switching equipment 14,100 1,019 (11) (24) 15,084
Telegraph, telex, and data communication
equipment 1,582 - - - 1,582
Transmission installation and equipment 97,335 5,933 (572) (15) 102,681
Satellite, earth station, and equipment 6,041 346 - (45) 6,342
Cable network 22,510 1,576 (3) 347 24,430
Power supply 16,890 910 (164) (543) 17,093
Data processing equipment 15,490 993 (319) (112) 16,052
Other telecommunication peripherals 6,067 857 - (24) 6,900
Office equipment 2,073 136 (15) (192) 2,002
Vehicles 242 27 (7) - 262
Other equipment 44 2 - 1 47
Total 189,809 12,182 (1,101) (716) 200,174
Net book value 173,329 175,471
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 June 30, 2023 and For the Six 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 24 296
Net book value (5) (109)
Gain on disposal or sale of property and equipment 19 187
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 Rp63 billion and Rp25 billion
for the six months period ended June 30, 2023 and 2022, respectively. The capitalization rate
used to determine the amount of borrowing costs eligible for capitalization ranged from 2.50%
to 7.62% and 4.20% to 5.54% for the six months period ended June 30, 2023 and 2022,
respectively.
(iii) No foreign exchange loss was capitalized as part of property under construction for the six
months period June 30, 2023 and the year ended December 31, 2022.
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 June 30, 2023 and For the Six 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 six months period ended June 30, 2023 and 2022, the Group obtained proceeds
from the insurance claim on lost and broken property and equipment, with a total value of
Rp151 billion and Rp135 billion, respectively, and were recorded as part of “Other income -
net” in the consolidated statements of profit or loss and other comprehensive income. During
June 30, 2023 and 2022, the net carrying values of those assets of Rp151 billion and
Rp122 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 June 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 June 30, 2023 and December 31, 2022, the equipment units of Telkomsel with
the net carrying amount of 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
June 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 June 30, 2023 and December 31, 2022, the Group’s property and equipment excluding
land rights, with net carrying amount of Rp168,190 billion and Rp172,112 billion, respectively,
were insured againts fire, theft, earthquake and other specified risks, including business
interruption, under blanket policies totalling Rp33,452 billion and Rp36,319 billion, HK10
million, SG$373 million, and MYR72 billion 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 June 30, 2023 and December 31, 2022, the percentage of completion of property under
construction was approximately 78.16% 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 June 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 Rp17,706 billion and
Rp18,370 billion, respectively, have been pledged as collateral under lending agreements
(Notes 18a and 19c).
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 June 30, 2023 and For the Six 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 June 30, 2023 and December 31, 2022, the cost of fully depreciated property and
equipment of the Group that are still used in operations amounted to Rp77,710 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 661 44 3,968 80 2 4,755
Deductions and reclassifications (29) (23) (1,722) (105) 0 (1,879)
Depreciation expense (474) (81) (1,828) (139) (17) (2,539)
As at June 30, 2023 4,245 603 15,277 359 189 20,673
The carrying amounts of the lease liabilities and the movements are as follows:
June 30, 2023 December 31, 2022
As at January 1 18,661 16,387
Accretion of interest 456 931
Additions (Note 39a) 4,755 10,006
Deductions (5,380) (8,663)
As at December 31 18,492 18,661
Current maturities (5,235) (4,925)
Non-current 13,257 13,736
Maturity analysis of lease payments are as follows:
June 30, 2023
Less than 1 year 5,953
1-5 years 8,464
More than 5 years 6,699
Total lease payments 21,116
Interest (2,624)
Net present value of lease payments 18,492
Current maturities (5,235)
Non-current 13,257
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 June 30, 2023 and For the Six 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 six months period ended June 30, 2023 and 2022 are as
follows:
2023 2022
Depreciation expense of right-of-use assets 2,539 2,540
Expense relating to short-term leases 1,626 1,398
Interest expense on lease liabilities 456 375
Expense relating to leases of low-value assets 24 31
13. OTHER NON-CURRENT ASSETS
The breakdown of other non-current assets is as follows:
June 30, 2023 December 31, 2022
Prepaid frequency license fees -
net of current portion (Note 35c.i) 2,184 1,291
Prepaid expenses 980 446
Claims for tax refund – net of current portion (Note 27b) 910 621
Advances 503 781
Security deposit 128 144
Others (each below Rp100 billion) 328 340
Total 5,033 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 - 1,067 13 4 1,084
Deductions - (372) (130) - (502)
Reclassifications/translations - (21) (11) (3) (35)
Balance, June 30, 2023 1,492 20,453 492 1,492 23,929
Accumulated amortization and impairment
losses:
Balance, January 1, 2023 (402) (13,616) (152) (910) (15,080)
Amortization - (1,074) (27) (45) (1,146)
Deductions - 371 2 - 373
Reclassifications/translations - 17 9 3 29
Balance, June 30, 2023 (402) (14,302) (168) (952) (15,824)
Net book value 1,090 6,151 324 540 8,105
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 June 30, 2023 and For the Six 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 June 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 June 30, 2023 and December 31, 2022, the cost of fully amortized intangible assets that
are still used in operations amounted to Rp9,921 billion and Rp9,640 billion, respectively.
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 June 30, 2023 and For the Six 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:
June 30, 2023 December 31, 2022
Related parties
Purchases of equipments, materials, and services 245 262
Payables to other telecommunication providers 288 169
Sub-total 533 431
Third parties
Purchases of equipments, materials, and services 10,625 14,453
Payables to other telecommunication providers 2,933 2,231
Radio frequency usage charges, concession fees,
and Universal Service Obligation (“USO”) charges 1,279 1,342
Sub-total 14,837 18,026
Total 15,370 18,457
Trade payables by currency are as follows:
June 30, 2023 December 31, 2022
Rupiah 13,165 16,727
U.S. Dollar 2,157 1,636
Others 48 94
Total 15,370 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:
June 30, 2023 December 31, 2022
Operation, maintenance,
and telecommunication services 8,410 8,183
General, administrative, and marketing expenses 2,706 3,067
Salaries and benefits 2,393 4,014
Interest and bank charges 208 181
Total 13,717 15,445
Refer to Note 32 for details of related party transactions.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
17. CONTRACT LIABILITIES
a. Current portion
June 30, 2023 December 31, 2022
Advances from customers for Mobile 4,292 3,577
Advances from customers for WIB 1,454 1,188
Advances from customers for Enterprise 1,034 1,126
Advances from customers for Consumer 248 233
Others (each other below Rp100 billion) 161 171
Total 7,189 6,295
b. Non-current portion
June 30, 2023 December 31, 2022
Advances from customers for Consumer 842 844
Advances from customers for WIB 562 700
Advances from customers for Enterprise 60 17
Total 1,464 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 June 30, 2023 December 31, 2022
Related parties
Bank Mandiri 7,767 3,483
BNI 2,028 979
BRI 1,000 -
Sub-total 10,795 4,462
Third parties
PT Bank HSBC Indonesia ("HSBC") 1,731 1,836
MUFG Bank ("MUFG") 1,059 1,349
Bank of China 1,000 -
PT Bank DBS Indonesia ("DBS") 475 475
Others (each below Rp100 billion) 69 69
Sub-total 4,334 3,729
Total 15,129 8,191
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 June 30, 2023 and For the Six 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 June 30, 2023 is as follows:
Total facility Interest rate per
Borrower (in billions)* Maturity date Interest rate annum Security**
Mandiri
2018 - 2022 Telkomsela, 8,100 July 26, 2023 - Monthly, 3.85% - 9.00% Trade
Nutech, Mitratel May 10, 2024 Quarterly receivables and
property and
equipment
2020 Finnet 500 July 20, 2023 Monthly 1 month None
JIBOR + 1.30%
BNI
2014 - 2022 the Company, 3,350 September 26, 2023 - Monthly 5.70% - 8.50% Trade
GSD, Sigmab January 9, 2024 receivables and
property and
equipment
2017 - 2021 Metranet, 1,135 February 18, 2024 - Monthly 1 month JIBOR + Trade
Telkom Infra, June 6, 2024 2.00% - 2.50% receivables
Infomediac
BRI
2022 the Company 2,000 September 7, 2023 Monthly 5.70% None
HSBC
2014 Sigmad,f 400 November 17, 2023 Monthly Under BLR 7.40% Trade
receivables
2018 - 2019 Sigmae, Metra, 2,053 October 31, 2023 - Monthly, 1 month None
PINS, Metranet, January 31, 2024 Quarterly JIBOR + 0.80%
Telkomsat, GSD 3 month
JIBOR + 1.00%
MUFG Bank
2018 - 2019 Infomedia, 1,430 October 31, 2023 Monthly 1 month None
Metra, GSD, JIBOR + 0.70%
Telkom Infra
Bank of China
2020 the Company 1,000 October 23, 2023 Quarterly 3 months None
JIBOR - 1.50%
DBS
2018 Telkom Infra, 475 July 31, 2023 Monthly 1 month None
Infomedia JIBOR - 1.20%
* 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 May 5, 2023.
b
Based on the latest amendment on July 28, 2022 and January 6, 2023.
c
Based on the latest amendment on March 28, 2018 and July 6, 2018.
d
Based on the latest amendment on July 16, 2018, November 17, 2021 and November 7, 2022.
e
Based on the latest amendment on April 23, 2021.
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 June 30, 2023, the Group has complied with all covenants.
The credit facilities were obtained by the Group for working capital purposes.
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 June 30, 2023 and For the Six 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 June 30, 2023 December 31, 2022
Two-step loans 19a 93 118
Bank loans 19c 13,290 7,788
Other borrowings 19d 843 952
Total 14,226 8,858
19. LONG-TERM LOANS AND OTHER BORROWINGS
Notes June 30, 2023 December 31, 2022
Two-step loans 19a 41 91
Bonds 19b 4,793 4,793
Bank loans 19c 21,669 22,085
Other borrowings 19d - 362
Total 26,503 27,331
Scheduled principal payments as of June 30, 2023 are as follows:
Year
Notes Total 2024 2025 2026 2027 Thereafter
Two-step loans 19a 41 41 - - - -
Bonds 19b 4,793 - 2,099 - - 2,694
Bank loans 19c 21,669 3,299 6,127 4,904 2,845 4,494
Other borrowings 19d - - - - - -
Total 26,503 3,340 8,226 4,904 2,845 7,188
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.
June 30, 2023 December 31, 2022
Outstanding Outstanding
Foreign currency Rupiah Foreign currency Rupiah
Lenders Currency (in millions) equivalent (in millions) equivalent
Overseas banks Yen 1,152 120 1,536 181
Rp - 14 - 28
Total 134 209
Current maturities (Note 18b) (93) (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.
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 June 30, 2023 and For the Six 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 June 30, 2023, the Company has complied with the above-mentioned ratios.
b. Bonds
Outstanding
June 30, 2023 December 31, 2022
2015
Series B 2,100 2,100
Series C 1,200 1,200
Series D 1,500 1,500
Total 4,800 4,800
Unamortized debt issuance cost (7) (7)
Long-term portion 4,793 4,793
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 June 30, 2023, the rating of the bonds issued by Pefindo is idAAA (Triple A).
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 June 30, 2023, the Company has complied with the above-mentioned ratios.
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 June 30, 2023 and For the Six 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
June 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 - 6,826 - 5,472
Bank Mandiri Rp - 3,817 - 4,381
BSI Rp - 2,016 - 22
BRI Rp - 1,182 - 1,409
Sub-total 13,841 11,284
Third parties
BCA Rp - 9,478 - 9,757
Syndication of banks Rp - 2,500 - 680
US$ 14 205 17 265
Bank CIMB Niaga Rp - 2,174 - 2,221
US$ 4 59 4 61
DBS Rp - 1,500 - 1,500
Bank Permata Rp - 1,417 - 1,021
Bank of China Rp - 1,000 - 1,000
BJB Rp - 1,000 - -
HSBC Rp - 688 - 750
MUFG Bank Rp - 500 - 500
Bank Danamon Rp - 364 - 455
PT Bank ANZ Indonesia ("Bank ANZ") Rp - 154 - 198
UOB Singapore US$ 9 128 13 205
Others (each below Rp100 billion) Rp - 25 - 60
MYR 9 29 10 34
Sub-total 21,221 18,707
Total 35,062 29,991
Unamortized debt issuance cost (103) (118)
34,959 29,873
Current maturities (Note 18b) (13,290) (7,788)
Long-term portion 21,669 22,085
Other significant information relating to bank loans as of June 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 - 2021 GSD, Rp 1,332 3 2021 - 2024 Monthly, 5.75% - 8.75% Trade
Telkomsel Quarterly receivables
2013 - 2021 The Rp 7,525 780 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 - 2020 The Rp 6,693 564 2019 - 2027 Quarterly 3 months JIBOR + None
Company, 1.50% - 1.85%
GSD,
Mitratel,
BSI
2018 - 2022 SSI, Rp 2,055 6 2019 - 2024 Monthly 5.15% - 7.50% None
Telkomsel
BRI
2017 - 2019 The Rp 2,500 227 2019 - 2026 Quarterly 3 months JIBOR + None
Company 1.70% - 1.85%
62
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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 June 30, 2023 and For the Six 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 June 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**
BCA
2022 Telkomsel Rp 1,500 - 2022 - 2023 Monthly 6.05% None
2020 - 2022 The Rp 15,986 1,008 2020 - 2030 Quarterly, 3 months Trade
Company, Semi-annually JIBOR + 1.50% receivables
Mitratel, and
PST, GSD property
and
equipment
Syndication
of banks
2022 Mitratel Rp 2,500 0 2024 - 2030 Semi-annually 7.68% None
2018 Telin US$ 0 0 2019 - 2025 Semi-annually 6 months None
SOFR + 1.25%
Bank CIMB
Niaga
2019 - 2022 GSD, Rp 2,500 47 2020 - 2029 Quarterly 3 months JIBOR + None
PINS, 1.30% - 1.95%
Mitratel
2021 - 2022 Telin US$ 0 - 2024 - 2030 Semi-annually 6 months None
SOFR + 1.82%
DBS
2021 Mitratel Rp 3,500 - 2023 - 2028 Semi-annually 3 months Property
JIBOR + 1.70% and
equipment
Bank Permata
2020 - 2022 Mitratel Rp 2,000 104 2021 - 2029 Semi-annually 3 months JIBOR + Property
1.30% - 1.50% and
equipment
Bank of China
2019 Telkomsel Rp 1,000 1,000 2021 - 2023 Quarterly 5.01% None
BJB
2023 Telkomsel Rp 1,000 - 2023 - 2023 Monthly 5.90% None
HSBC
2021 Mitratel Rp 750 62 2023 - 2028 Semi-annually 3 months Property
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, PINS Rp 740 44 2020 - 2025 Quarterly 3 months JIBOR + None
1.40% - 2.00%
UOB Singapore
2018 Telin US$ 0 0 2019 - 2024 Semi-annually 6 months None
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 June 30, 2023, the Group has complied with all covenants.
The credit facilities were obtained by the Group for working capital purposes and investment
purposes.
63
Page 67
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 June 30, 2023 and For the Six 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
Outstanding
Lenders June 30, 2023 December 31, 2022
PT Sarana Multi Infrastruktur (Persero)
("Sarana Multi Infrastruktur") 844 1,315
Unamortized debt issuance cost (1) (1)
Total 843 1,314
Current maturities (Note 18b) (843) (952)
Long-term portion - 362
Other significant information relating to other borrowings as of June 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 2,836 350 Semi-annually 3 months None
Company (2020 - 2024) JIBOR + 1.75%
March 29, 2019* Telkomsat Rp 164 12 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 June 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:
June 30, 2023 December 31, 2022
Non-controlling interests in net assets of subsidiaries:
Telkomsel 7,261 10,535
Mitratel 8,842 9,038
Others 402 431
Total 16,505 20,004
2023 2022
Non-controlling interests in net income (loss)
in current period of subsidiaries:
Telkomsel 3,764 3,986
Mitratel 288 251
Others 13 8
Total 4,065 4,245
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 June 30, 2023 and For the Six 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 June 30, 2023 and December 31, 2022, the non-controlling
interest in Telkomsel holds 35.00% and 35.00% and Mitratel holds 28.15% 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
June 30, December 31, June 30, December
2023 2022 2023 31, 2022
Current assets 12,715 16,290 6,313 7,886
Non-current assets 85,520 84,701 50,477 48,185
Current liabilities (40,311) (32,241) (10,514) (10,200)
Non-current liabilities (37,255) (38,708) (13,213) (12,064)
Total equity 20,669 30,042 33,063 33,807
Attributable to:
Owners of the parent company 13,408 19,507 24,220 24,769
Non-controlling interests 7,261 10,535 8,843 9,038
Summarized statements of profit or loss and other comprehensive income:
Telkomsel Mitratel
2023 2022 2023 2022
Revenues 44,009 43,586 4,130 3,726
Operation expenses (29,784) (28,685) (2,349) (2,175)
Other expenses - net (521) (938) (673) (534)
Profit before income tax 13,704 13,963 1,108 1,017
Income tax expense - net (2,968) (2,562) (85) (126)
Profit for the period 10,736 11,401 1,023 891
Other comprehensive income (loss) - net - - - -
Total comprehensive income
for the period 10,736 11,401 1,023 891
Attributable to
non-controlling interests 3,764 3,986 288 251
Dividends paid to
non-controlling interests 7,037 7,218 497 272
CF
Summarized statements of cash flows:
Telkomsel Mitratel
2023 2022 2023 2022
Operating 15,884 21,759 3,384 4,384
Investing (5,560) (5,712) (2,952) (1,068)
Financing (13,007) (16,090) (2,958) (5,427)
Decreased in cash and
(2,683) (43) (2,526) (2,111)
cash equivalent
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
21. CAPITAL STOCK
June 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* 3,880,154,380 3.92 195
Directors (Note 1b):
Ririek Adriansyah 5,482,255 0 0
Bogi Witjaksono 3,676,500 0 0
Afriwandi 3,719,000 0 0
Heri Supriadi 3,716,500 0 0
FM Venusiana R 7,353,000 0 0
Herlan Wijanarko 3,719,000 0 0
Muhamad Fajrin Rasyid 3,676,500 0 0
Budi Setyawan Wijaya 3,951,500 0 0
Honesti Basyir 240,004 0 0
Commisioner (Note 1b):
Isa Rachmatarwata 1,751,700 0 0
Marcelino Rumambo Pandin 1,751,700 0 0
Ismail 1,751,700 0 0
Arya Mahendra Sinulingga 1,799,200 0 0
Rizal Mallarangeng 1,751,700 0 0
Public (individually less than 5%) 43,535,368,401 43.99 2,178
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
June 30, 2023 December 31, 2022
Difference due to acquisition of non-controlling interests
in subsidiaries 8,358 8,358
Translation adjustment 771 910
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 9,558 9,697
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 June 30, 2023 and For the Six 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 4,950 - - 81 - 5,031
Fixed lines - 334 285 59 - 678
Total telephone revenues 4,950 334 285 140 - 5,709
Interconnection revenues 143 - - 4,320 - 4,463
Data, internet, and information
technology service revenues
Cellular data and internet 35,209 - - - - 35,209
Internet, data communication, and
information technology services - 78 3,669 1,090 - 4,837
SMS 1,782 - 15 - - 1,797
Others 31 - 978 476 99 1,584
Total data, internet, and information
technology service revenues 37,022 78 4,662 1,566 99 43,427
Network revenues 2 - 594 620 - 1,216
Indihome revenues - 12,847 1,542 - - 14,389
Other services
Call center service - - 660 - - 660
Manage service and terminal - - 433 1 - 434
E-health - - 354 - - 354
E-payment 3 - 236 - - 239
Others 49 21 513 159 492 1,234
Total other services 52 21 2,196 160 492 2,921
Total revenues from
contract with customer 42,169 13,280 9,279 6,806 591 72,125
Revenues from lessor transactions - - - 1,353 - 1,353
Total revenues 42,169 13,280 9,279 8,159 591 73,478
Adjustments and eliminations - 3 5 (3) (402)
Total external revenues as reported in
note operating segment 42,169 13,283 9,284 8,156 189
2022 Mobile Consumer Enterprise WIB Others Consolidated revenue
Telephone revenues
Cellular 6,207 - - 18 - 6,225
Fixed lines - 393 304 92 - 789
Total telephone revenues 6,207 393 304 110 - 7,014
Interconnection revenues 133 - - 4,089 - 4,222
Data, internet, and information
technology service revenues
Cellular data and internet 33,196 - - - - 33,196
Internet, data communication, and
information technology services - 196 3,413 1,114 - 4,723
SMS 2,281 - 22 - - 2,303
Others - - 796 406 101 1,303
Total data, internet, and information
technology service revenues 35,477 196 4,231 1,520 101 41,525
Network revenues 2 - 661 434 - 1,097
Indihome revenues - 12,460 1,371 - - 13,831
Other services
Call center service - - 531 24 - 555
Manage service and terminal - - 550 9 - 559
E-health - - 341 - - 341
E-payment - - 165 - - 165
Others - 32 542 194 383 1,151
Total other services - 32 2,129 227 383 2,771
Total revenues from
contract with customer 41,819 13,081 8,696 6,380 484 70,460
Revenues from lessor transactions - - - 1,523 - 1,523
Total revenues 41,819 13,081 8,696 7,903 484 71,983
Adjustments and eliminations - (6) 5 (2) (375)
Total external revenues as reported in
note operating segment 41,819 13,075 8,701 7,901 109
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 June 30, 2023 and For the Six 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
June 30, 2023 will be recognized as revenue during the next reporting periods. Unsatisfied
performance obligations as of June 30, 2023, which management expect to be realised within one
year is Rp6,244 billion, and more than one year is Rp3,449 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 six months
ended June 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 4,999 4,808
Vacation pay, incentives, and other benefits 1,780 1,694
Pension and other post-employment
benefits (Note 30) 904 923
LSA expense (Note 31) 142 87
Others 19 14
Total 7,844 7,526
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 11,254 10,739
Radio frequency usage charges (Note 35c.i) 3,674 3,210
Leased lines and Customer Premise Equipment ("CPE") 1,501 1,263
Concession fees and USO charges (Note 15) 1,312 1,262
Electricity, gas, and water 441 451
Cost of SIM cards, vouchers, and
sales of peripherals (Note 7) 349 350
Project management 263 224
Vehicles rental and supporting facilities 149 166
Insurance 126 101
Others (each below Rp100 billion) 101 81
Total 19,170 17,847
Refer to Note 32 for details of related parties transactions.
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 June 30, 2023 and For the Six 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 1,192 1,087
Allowance for expected credit losses 859 705
Professional fees 333 314
Traveling 207 164
Training, education, and recruitment 161 128
Meeting 153 119
Social contribution 125 101
Others (each below Rp100 billion) 301 202
Total 3,331 2,820
Refer to Note 32 for details of related parties transactions.
27. TAXATION
a. Prepaid taxes
June 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
VAT - -
Subsidiaries:
Income Tax
Corporate Income Tax 71 3
Article 4(2) - Final tax 49 24
Article 22 - Witholding tax on goods delivery
and imports 2 -
Article 23 - Witholding tax on service delivery 262 16
VAT 1,975 1,323
Total prepaid taxes 2,359 1,464
Current portion (2,359) (1,464)
Non-current portion (Note 13) - -
b. Claims for tax refund
June 30, 2023 December 31, 2022
The Company
Corporate Income Tax - 19
Article 21 - Individual income tax 1 3
VAT 163 155
Subsidiaries
Income Tax
Corporate income tax 476 578
Article 23 - Witholding tax on services delivery - 8
VAT 273 238
Total claims for tax refund 913 1,001
Current portion (3) (380)
Non-current portion (Note 13) 910 621
69
Page 73
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
27. TAXATION (continued)
c. Taxes payable
June 30, 2023 December 31, 2022
The Company:
Income taxes
Article 4(2) - Final tax 31 50
Article 21 - Individual income tax 359 79
Article 22 - Withholding tax on goods delivery
and imports 3 7
Article 23 - Withholding tax on services 34 48
Article 25 - Installment of corporate income tax 13 190
Article 26 - Withholding tax on non-resident
income 1,068 5
Article 29 - Corporate income tax 101 575
VAT 510 244
VAT - Tax collector 181 286
2,300 1,484
Subsidiaries:
Income taxes
Article 4(2) - Final tax 142 287
Article 21 - Individual income tax 154 206
Article 22 - Withholding tax on goods delivery
and imports 3 5
Article 23 - Withholding tax on services 96 68
Article 25 - Installment of corporate income tax 567 260
Article 26 - Withholding tax on non-resident
income 187 262
Article 29 - Corporate income tax 994 1,782
VAT 561 493
VAT - Tax collector 559 525
3,263 3,888
Total taxes payable 5,563 5,372
d. The components of consolidated income tax expense (benefit) are as follows:
2023 2022
Current
The Company 747 1,094
Subsidiaries 3,359 3,517
4,106 4,611
Deferred
The Company 356 (177)
Subsidiaries 19 (560)
375 (737)
Net income tax expense 4,481 3,874
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 June 30, 2023 and For the Six 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 six months period ended June 30, 2023 and 2022 are as follows:
2023 2022
Profit before income tax consolidation 21,302 21,429
Add back consolidation eliminations 11,653 11,988
Consolidated profit before income tax and eliminations 32,955 33,417
Less: profit before income tax of the subsidiaries (19,054) (19,670)
Profit before income tax attributable to the Company
before deduction of income subject to final tax 13,901 13,747
Less: income subject to final tax (296) (203)
Profit before income tax attributable to the Company
after deduction of income subject to final tax 13,605 13,544
Temporary differences:
Allowance for expected credit losses 260 90
Deferred installation fee 12 115
Leases (13) 8
Provision for employee benefits (353) (674)
Land rights, intangible assets, and other 18 10
Net periodic pension and other post-employment
benefits costs (1,201) (33)
Difference between book value of accounting
and tax property equipment (805) 939
Accrued expenses and provision for inventory
obsolescence 30 37
Contract cost 62 65
Net temporary differences (1,990) 557
Permanent differences:
Net periodic post-retirement health care benefit costs 121 127
Donations 121 125
Employee benefits 10 100
Expense related to income subject to final tax 97 -
Equity in net income of associates and subsidiaries (8,223) (8,961)
Others 20 159
Net permanent differences (7,854) (8,450)
Taxable income of the Company 3,761 5,651
Current corporate income tax expense 715 1,074
Final income tax expense 32 20
Total current income tax expense of the Company 747 1,094
Current income tax expense of the subsidiaries 3,359 3,517
Total current income tax expense 4,106 4,611
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 June 30, 2023 and For the Six 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:
8 2023 2022
Profit before income tax consolidation 21,302 21,429
Less consolidated income subject to final tax - net (3,195) (2,741)
18,107 18,688
Income tax expense calculated at the Company’s
applicable statutory tax rate 3,440 3,551
Difference in applicable statutory tax rate for
subsidiaries 377 403
Non-deductible expenses 509 529
Final income tax expense 32 15
Deferred tax adjusment (28) -
Unrecognized deferred tax 4 -
Others 147 (624)
Net income tax expense 4,481 3,874
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 six months period ended June 30, 2023 and
2022. The subsidiaries applied the tax rate of 22% for the six months period ended June 30, 2023
and 2022.
The Company will submitt the above taxable income and current income tax expense
computation in its income tax return (“Surat Pemberitahuan Tahunan” or Annual Tax Return) for
fiscal year 2022 that will be reported to the tax office based on prevailing 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.
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 June 30, 2023 and For the Six 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. As of the date of approval and authorization for the issuance
of these consolidated financial statements, the Company did not received verdict from the
Supreme Court. In accordance with taxation law, for all withholding income tax and VAT
except for corporate income tax has passed tax assessment period, therefore all tax liabilities
for fiscal year 2015 considered final and has permanent legal force.
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. As of the
issuance date of these financial statements, the Company still has not received the Supreme
Court decision on the DGT’s request for review. Thus, all tax obligations for 2015 other than
the type of corporate income tax can be considered final and have permanent legal force
because at the time of issuance of these consolidated financial statements, the 2015 tax
obligations have passed the expiration date for tax determination as stipulated in the tax laws
and regulations.
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).
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 June 30, 2023 and For the Six 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)
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.
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.
74
Page 78
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 June 30, 2023 and For the Six 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 30, 2023, the Company received a Field Examination Notification Letter to examine
the compliance with the fulfillment of tax obligations on Corporate Income Tax, VAT and
Income Tax Withholding/Collection for the 2021 Tax Year. As of the issuance date of these
financial statements, the tax audit process is still ongoing.
(ii) Telkomsel
Income tax and VAT fiscal year 2014
On May 31, 2019, Telkomsel received the SKPKB and STP for the fiscal year 2014 amounting
to Rp150.6 billion (including penalty of Rp54.6 billion). Telkomsel accepted and paid the
portion of Rp16.5 billion on June 27, 2019 and recorded it as other expense. On August 20,
2019, Telkomsel has paid amounting to Rp99.1 billion and recorded it as claim for tax refund.
Subsequently, on August 23, 2019, Telkomsel filed an objection to the Tax Authorities
amounting to Rp134.1 billion.
On July 15 and July 22, 2020, Telkomsel received objection decision letter from Tax
Authorities which accepted Rp27.2 billion and rejected Rp106.8 billion. In August 27, 2020
Telkomsel received partially the tax refund Rp27.2 billion. On September 28, 2020, Telkomsel
filed an appeal to the Tax Court for the 2014 corporate income tax, withholding tax, and VAT.
In April and May 2022, Telkomsel received the Tax Court’s Verdict for the 2014 underpayment
of withholding tax and VAT which fully accepted Telkomsel’s appeal amounting to Rp13.7
billion and Rp52.3 billion. Telkomsel received the tax refund in May and June 2022, and
recorded the remaining tax assessment of Rp3.6 billion as expense in 2022 consolidated
statements of profit or loss.
In August 2022, Telkomsel received notifications that the Tax Authorities had filed judicial
reviews to the Supreme Court for the Tax Court's decision on VAT 2014 amounting Rp8 billion.
Telkomsel submitted its contra memorandums for judicial review in September 2022.
In January, 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 results of appeal
for CIT have not yet been received
Income tax and VAT fiscal year 2015
On August 1, 2019, Telkomsel received the SKPKB and STP for fiscal year 2015 amounting
to Rp384.8 billion (including penalty of Rp128.6 billion). On August 28, 2019, Telkomsel has
paid the whole amount (including penalty). For the amount of Rp34.6 billion was charged to
the statement of profit or loss and other comprehensive income and for the remaining portion
amounting to Rp350.2 billion was recorded as claim for tax refund. On September 24, 2019,
Telkomsel filed an objection to the Tax Authorities amounting to Rp350.2 billion.
On July 13, 2020, Telkomsel received objection decision letter from Tax Authorities that
rejected all Company’s objection. On September 28, 2020, Telkomsel filed an appeal to the
Tax Court for the 2015 CIT, WHT, and VAT.
In April and May 2022, Telkomsel received the Tax Court’s Verdict for the 2015 underpayment
of withholding tax and VAT which partially accepted Telkomsel’s appeal amounting to Rp52.9
billion. Telkomsel received the tax refund in April and May 2022 and charge the rejected
portion of Rp3 billion as expense in 2022 consolidated financial statements of profit or loss.
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 June 30, 2023 and For the Six 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 August 2022, Telkomsel received notifications that the Tax Authorities had filed judicial
reviews to the Supreme Court for the Tax Court's decision on VAT. Telkomsel submitted its
contra memorandums for judicial review in August 2022.
In January, February and March 2023, the SC partially rejected the judicial review claimed by
the Tax Authorities on several tax periods of 2015 VAT amounting to Rp19.60 billion. Thus,
these cases have been legally enforced (in-kracht) and no additional tax payables for fiscal
year 2015.
As at the authorization date of these consolidated financial statements, the results of appeal
for CIT and judicial review for remaining fiscal periods of VAT have not yet been received.
Income tax and VAT fiscal year 2018
On September 22, 2022, Telkomsel received tax underpayment assessment letters and tax
collection letters for the 2018 corporate income tax, VAT on taxable goods and withholding tax
article 26 amounting to Rp159.8 billion (including penalty of Rp48.6 billion) in total. At the same
date, Telkomsel also received tax assessment letters for 2018 VAT on taxable services
confirming tax overpayments in the amount of Rp40 billion.
On October 14, 2022, Telkomsel paid and accepted a portion of the CIT tax assessment of
Rp164.79 million and recorded it as expense in the consolidated statements of profit or loss.
Telkomsel also paid the remaining amount of tax assessment for CIT and VAT amounting to
Rp57.03 billion, after deducted with overpayment of Rp40.05 billion. Telkomsel recorded it as
claim for tax refund in the consolidated statements 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.
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 June 30, 2023 and For the Six 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
June 30, 2023 December 31, 2022 2023 2022
The Company
Allowance for expected credit losses 935 885 50 17
Net periodic pension and other
post-employment benefit costs 995 981 (228) (6)
Difference between accounting and tax
bases of property and equipment 676 806 (130) 249
Provision for employee benefits 225 292 (67) (128)
Deferred installation fee 206 203 3 22
Land rights, intangible assets and others 26 23 3 2
Accrued expenses and provision for
inventory obsolescence 91 85 6 7
Leases (4) (1) (3) 1
Contract cost (38) (49) 11 12
Total deferred tax assets 3,112 3,225 (355) 176
Telkomsel
Provision for employee benefits 1,313 1,220 93 6
Allowance for expected credit losses 179 144 35 16
Leases 254 468 (214) (176)
Fair value measurement of financial
instruments (7) (7) - 550
Difference between accounting and tax bases of
property and equipment (1,346) (1,445) 99 119
License amortization (149) (146) (3) 2
Other financial instruments (117) (119) 2 41
Deferred tax assets (liabilities) of Telkomsel - net 127 115 12 558
Deferred tax assets of the other subsidiaries - net 766 777 (12) 36
Deferred tax liabilities of the other subsidiaries - net (1,029) (1,023) (20) (33)
Deferred tax expense (income) (375) 737
Total deferred tax assets - net 4,005 4,117
Total deferred tax liabilities - net (1,029) (1,023)
g. Administration
As of June 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 Rp17,292 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.
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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
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 Rp12,756 billion and Rp13,310 billion by the weighted average number
of shares outstanding during the period totaling 99,062,216,600 shares for the six months period
ended June 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 Rp128.77 and Rp134.36 (in full amount) for the six months
period ended June 30, 2023 and 2022, respectively.
The Company does not have potentially dilutive financial investments for the six months period ended
June 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 June 30, 2023 and
December 31, 2022 amounting to Rp15,337 billion, respectively.
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 June 30, 2023 and For the Six 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 June 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 4,293 4,234
Additional pension benefit obligation 30a.i.a.ii 47 44
The Company - unfunded 30a.i.b 521 522
Telkomsel 30a.ii 4,492 4,275
Projected pension benefit obligations 9,353 9,075
Net periodic post-employment health care
benefit 30b 515 -
Other post-employment benefit 30c 267 268
Long service employee benefit 30d 1 1
Obligation under the Labor Law 30e 1,006 928
Total 11,142 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 345 378
Additional pension benefit obligation 30a.i.a.ii 2 0
The Company - unfunded 30a.i.b 28 30
Telkomsel 30a.ii 312 292
Total periodic pension benefit cost 25 687 700
Net periodic post-employment health care
benefit cost 24,30b 121 127
Other post-employment benefit cost 24,30c 11 12
Long service employee benefit cost 24,30d 1 1
Obligation under the Labor Law 24,30e 84 83
Total 904 923
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 June 30, 2023 and For the Six 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 June 30, 2023 and December 31, 2022:
Funded Post-employment
Defined pension benefit obligation health care benefit
The Company Telkomsel The Company
Projected
post- Post-
Projected Projected employment 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 166 - 163 - - - 329
Interest costs (income) 803 (660) 149 - 456 (459) 289
Plan administration cost (65) 65 - - - 121 121
Additional welfare benefits 50 - - - - - 50
Cost recognized in the consolidated
statement of profit or loss 954 (595) 312 - 456 (338) 789
Actuarial (gain) loss on:
Experience adjustments 113 - - - (14) - 99
Changes in demographic assumptions - - - - - - -
Changes in financial assumptions 1,770 - - - 809 - 2,579
Return on plan assets
(excluding amount included in
net interest expense) - (622) - - - (314) (936)
Interest income in asset ceiling - - - - - 4 4
Changes in asset ceiling - - - - - (88) (88)
Cost recognized in OCI 1,883 (622) - - 795 (402) 1,654
Employer’s contributions - (1,511) - - - - (1,511)
Pension plan participants’ contributions 9 (9) - - - - -
Benefits paid from plan assets (975) 975 (95) - - - (95)
Benefits paid by employer (50) - - - (289) 289 (50)
Balance, June 30, 2023 24,957 (20,664) 5,345 (853) 13,840 (13,325) 9,300
Projected pension benefit
obligation at end of year 4,293 4,492 515 9,300
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
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 June 30, 2023 and For the Six 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 June 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 11 - 3 - 71 85
Interest costs 17 2 8 - 3 30
Cost recognized in the consolidated
statement of profit or loss 28 2 11 - 74 115
Actuarial (gain) loss recognized in OCI (2) 3 6 - 4 11
Benefits paid by employer (27) (2) (18) - - (47)
Balance, June 30, 2023 521 47 267 1 1,006 1,842
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) loss 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 six months period ended June 30, 2023
and 2022 are as follows:
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
2023 obligations obligations Unfunded cost obligations benefit obligations the labor law Total
Service costs 166 0 11 - 3 1 163 81 425
Interest costs 143 2 17 (3) 8 - 149 3 319
Interest costs in asset ceiling - - - 3 - - - - 3
Plan administration cost - - - 121 - - - - 121
Plan administration cost 50 - - 0 - - - - 50
Net periodic pension benefit cost 359 2 28 121 11 1 312 84 918
Amount charged to subsidiaries
under contractual agreements (14) - - - - - - - (14)
Net periodic pension benefit
cost less charged
to subsidiaries 345 2 28 121 11 1 312 84 904
81
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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 June 30, 2023 and For the Six 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 six months period ended June 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 117 - 13 - 3 1 146 83 363
Interest costs 160 - 17 24 9 - 146 - 356
Plan administration cost 36 - - 103 - - - - 139
Additional welfare benefits 65 - - - - - - - 65
Net periodic pension
benefit coss less
charged to subsidiaries 378 - 30 127 12 1 292 83 923
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 Rp1,511 billion and
Rp719 billion, for the six months period ended June 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.
82
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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 June 30, 2023 and For the Six 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 June 30, 2023 and December 31, 2022, plan assets consist of:
June 30, 2023 December 31, 2022
Quoted in Quoted in
active market Unquoted active market Unquoted
Cash and cash equivalents 1,207 - 1,320 -
Equity instruments:
Financials 1,707 - 1,638 -
Consumer non-cyclicals 510 - 505 -
Basic material 235 - 271 -
Infrastructures 683 - 639 -
Energy 123 - 141 -
Technology 52 - 89 -
Industrials 373 - 315 -
Consumer cyclicals 115 - 115 -
Properties and real estate 109 - 98 -
Healthcare 212 - 208 -
Transportation and logistic 11 - 8 -
Equity-based mutual fund 379 - 410 -
Fixed income instruments:
Corporate bonds - 2,662 - 3,117
Government bonds 10,007 - 7,884 -
Fixed income mutual funds - 122 - 122
Midterm notes - 100 - 100
Asset-backed securities - 18 - 30
Sukuk - 1,130 - 1,090
Non-public equity:
Direct placement - 368 - 368
Property - 186 - 187
Others - 354 - 247
Total 15,723 4,940 13,641 5,261
Pension plan assets include Series B shares issued by the Company with fair values
totalling to Rp349 billion and Rp336 billion, representing 1.69% and 1.78% of total plan
assets as of June 30, 2023 and December 31, 2022, respectively, and bonds issued by
the Company with fair value totalling to Rp355 billion and Rp348 billion representing
1.72% and 1.84% of total plan assets as of June 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 Rp1,217 billion and Rp984 billion for the six months period
ended June 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 June 30, 2023,
Dapen’s FSR is below 105%. Therefore, the Company will contribute to the defined
benefit pension plan.
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 June 30, 2023 and For the Six 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
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 June 30, 2023 and For the Six 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 June 30, 2023, the additional pension benefit
obligation have been fully paid to the pension recipients and 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 Rp27 billion and Rp48 billion, for the six months
period ended June 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
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 June 30, 2023 and For the Six 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.
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
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 six months period ended June 30, 2023 and for the years ended December 31, 2022.
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 June 30, 2023 and For the Six 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)
As of June 30, 2023 and December 31, 2022, plan assets consists of:
June 30, 2023 December 31, 2022
Quoted in Quoted in
active market Unquoted active market Unquoted
Cash and cash equivalents 617 - 1,085 -
Equity instruments:
Financials 1,379 - 1,368 -
Consumer non-cyclicals 440 - 114 -
Basic material 239 - 264 -
Infrastructures 623 - 598 -
Energy 121 - 221 -
Technology 21 - 63 -
Industrials 290 - 185 -
Consumer cyclicals 116 - 457 -
Properties and real estate 113 - 95 -
Healthcare 199 - 233 -
Transportation and logistic 7 - 3 -
Equity-based mutual funds 600 - 1,035 -
Fixed income instruments:
Government obligations 850 - 82 -
Fixed income mutual funds 7,267 - 6,761 -
Unlisted shares:
Private placement - 443 - 398
Total 12,882 443 12,564 398
Yakes Telkom plan assets also include Series B shares issued by the Company with fair value
totalling Rp331 billion and Rp228 billion, representing 2.48% and 1.76% of total plan assets as of
June 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 Rp652 billion and Rp839 billion for
the six months perioo ended June 30, 2023 and for the years ended December 31, 2022,
respectively.
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
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 June 30, 2023 and For the Six 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)
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 June 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 six months period ended June 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 June 30, 2023 and December 31, 2022 amounted to Rp1,006 billion and
Rp928 billion, respectively. The related pension employee benefits cost charged to expense
amounted to Rp84 billion and Rp83 billion for the six months period ended June 30, 2023 and
2022, respectively.
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 June 30, 2023 and For the Six 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)
June 30, 2023
Within next 10 years 21,486 40 667 5,111 8,308 310 67
Within 10-20 years 16,268 31 233 11,178 12,929 126 414
Within 20-30 years 10,089 17 454 7,827 11,845 81 526
Within 30-40 years 3,963 6 75 473 5,205 4 59
Within 40-50 years 800 1 - - 876 - -
Within 50-60 years 66 - - - 51 - -
Within 60-70 years 1 - - - 5 - -
Within 70-80 years - - - - 1 - -
Weighted average
duration of DBO 8.73 years 8.73 years 5.73 years 9.45 years 12.59 years 4.67 years 11.58 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 June 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
June 30, 2023
Funded:
Defined pension benefit obligation (2,312) 2,759 251 (240)
Unfunded (25) 28 28 (25)
Telkomsel (452) 516 563 (501)
Post-employment health care benefits (1,548) 1,869 1,852 (1,563)
Other post-employment benefits (12) 13 3 (3)
Post-employment benefits UUCK (Telkom) (10) 11 32 (28)
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)
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 June 30, 2023 and For the Six 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 Rp1,111 billion and Rp1,301 billion as of
June 30, 2023 and December 31, 2022, respectively. The related benefit costs charged to expense
amounted Rp142 billion and Rp87 billion for the six months period ended June 30, 2023 and 2022,
respectively (Note 24).
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 June 30, 2023 and For the Six 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
PT Garuda Indonesia (Persero) Entity under common control Internet and data service revenues, other
(“Garuda Indonesia”) telecommunication service revenues
PT Perusahaan Listrik Negara Entity under common control Internet and data service revenues, other
(“PLN”) telecommunication service revenues, and
electricity expenses
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
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 June 30, 2023 and December 31, 2022 the Group recorded
a increase (decrease) impairment loss from trade receivables of related party amounted to Rp305 billion
and Rp(57) billion. Impairment assessment is undertaken each financial year by examining the current
status of existing receivables and historical collection experience.
91
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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 June 30, 2023 and For the Six 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 0.11 31 0.04
Entities under common control
Indosat 808 1.10 576 0.80
Pertamina 386 0.53 400 0.56
BNI 288 0.39 265 0.37
Garuda Indonesia 162 0.22 40 0.06
BRI 122 0.17 90 0.13
Others (each below Rp100 billion) 637 0.87 947 1.31
Sub-total 2,403 3.28 2,318 3.23
Other related entities 18 0.02 17 0.02
Associated companies 4 0.01 6 0.01
Total 2,504 3.42 2,372 3.30
2023 2022
% of total % of total
Amount expenses Amount expenses
Expenses
Entities under common control
PLN 1,289 2.53 1,214 2.45
Indosat 270 0.53 268 0.54
Others (each below Rp100 billion) 266 0.52 260 0.53
Sub-total 1,825 3.58 1,742 3.52
Other related entities
Padi UMKM 296 0.58 293 0.59
Others (each below Rp100 billion) 31 0.06 85 0.17
Sub-total 327 0.64 378 0.76
Associated companies 63 0.12 88 0.18
Total 2,215 4.34 2,208 4.46
2023 2022
% of total % of total
Amount finance income Amount finance income
Finance income
Entities under common control
State-owned banks 152 28.90 266 60.32
Total 152 28.90 266 60.32
2023 2022
% of total % of total
Amount finance cost Amount finance cost
Finance cost
Majority stockholder
Ministry of Finance 3 0.13 6 0.31
Entities under common control
State-owned banks 566 25.21 459 23.50
Sarana Multi Infrastruktur 47 2.09 60 3.07
Total 616 27.43 525 26.88
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 June 30, 2023 and For the Six 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 25 0.17 62 0.46
Total 25 0.17 62 0.46
2023 2022
% of total % of total
Amount revenues Amount revenue
Distribution of SIM
card and voucher
Associated companies
Omni Inovasi Indonesia 465 0.63 506 0.70
Finarya 87 0.12 - -
Total 552 0.75 506 0.70
c. Balance of accounts with related parties
June 30, 2023 December 31, 2022
% of total % of total
Amount assets Amount assets
Cash and cash equivalents
(Note 3) 29,950 10.31 23,328 8.48
Other current financial
asset (Note 4) 465 0.16 400 0.15
Trade receivables - net
(Note 5) 1,763 0.61 1,620 0.59
Contract assets
Majority stockholder
Government 23 0.01 24 0.01
Entities under common control 256 0.09 248 0.09
Associated companies 1 0.00 1 0.00
Other related entities 1 0.00 1 0.00
Total 281 0.10 274 0.10
Other current asset 52 0.02 98 0.04
Other non-current asset 8 0.00 15 0.01
June 30, 2023 December 31, 2022
% of total % of total
Amount liabilities Amount liabilities
Trade payables (Note 15)
Majority stockholder
Ministry of Finance 0 0.00 0 0.00
Entities under common control
State-owned enterprises 179 0.12 197 0.16
Indosat 237 0.16 140 0.11
Others 32 0.02 37 0.03
Sub-total 448 0.30 374 0.30
Other related entities 85 0.06 57 0.05
Total 533 0.36 431 0.35
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 June 30, 2023 and For the Six 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)
June 30, 2023 December 31, 2022
% of total % of total
Amount liabilities Amount liabilities
Accrued expenses
Majority stockholder
Government 1 0.00 1 0.00
Entities under common control
State-owned enterprises 48 0.03 57 0.05
State-owned banks 70 0.05 74 0.06
Others 1 0.00 2 0.00
Sub-total 119 0.08 133 0.11
Total 120 0.08 134 0.11
Contract liabilities
Majority stockholder
Government 20 0.01 34 0.03
Entities under common control
State-owned enterprises 190 0.13 170 0.13
Others 0 0.00 0 0.00
Sub-total 190 0.13 170 0.13
Associated companies 5 0.00 2 0.00
Other related entities 1 0.00 3 0.00
Total 216 0.14 209 0.16
Customer deposits 19 0.01 19 0.02
Short-term bank loans (Note 18) 10,795 7.19 4,462 3.54
Two-step loans (Note 19a) 134 0.09 209 0.17
Long-term bank loans (Note 19c) 13,841 9.22 11,284 8.96
Other borrowings (Note 19d) 843 0.56 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”.
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 June 30, 2023 and For the Six 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 237 0.46% 230 0.46%
Board of Commissioners 97 0.19% 89 0.18%
The amounts disclosed in the table are the amounts recognized as an expense during the reporting
periods.
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 June 30, 2023 and For the Six 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 42,169 13,283 9,284 8,156 189 73,081 397 73,478
Inter-segment revenues 1,736 96 12,482 10,178 1,043 25,535 (25,535) -
Total segment revenues 43,905 13,379 21,766 18,334 1,232 98,616 (25,138) 73,478
Segment results 14,757 4,380 (66) 4,541 (550) 23,062 (1,760) 21,302
Other information
Capital expenditures (5,299) (2,998) (2,788) (3,881) (4) (14,970) (70) (15,040)
Depreciation and amortization (10,437) (2,888) (1,855) (3,080) (9) (18,269) 2,321 (15,948)
Provision recognized in
current period (128) (249) (419) (20) (3) (819) 16 (803)
2022
Adjustment
Total and Total
Mobile Consumer Enterprise WIB Others segment elimination consolidated
Segment result
Revenues
External revenues 41,819 13,075 8,701 7,901 109 71,605 378 71,983
Inter-segment revenues 1,687 88 11,349 9,265 1,368 23,757 (23,757) -
Total segment revenues 43,506 13,163 20,050 17,166 1,477 95,362 (23,379) 71,983
Segment results 14,813 3,168 217 4,770 (451) 22,517 (1,088) 21,429
Other information
Capital expenditures (5,968) (3,281) (2,477) (1,732) (2) (13,460) (35) (13,495)
Depreciation and amortization (10,428) (4,062) (1,985) (2,636) (9) (19,120) 2,134 (16,986)
Provision recognized in
current period (99) (206) (417) 21 (3) (704) 8 (696)
Adjustments and eliminations:
a. Revenue reconciliation
2023 2022
Total segment revenues 98,616 95,362
Revenue from other non-operating segments 397 378
Inter-segment elimination (25,535) (23,757)
Consolidated revenues 73,478 71,983
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 June 30, 2023 and For the Six 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 23,062 22,517
Loss from other non-operating segments (896) (906)
Adjustment and inter-segment elimination 853 1,325
Finance income 526 441
Finance cost (2,245) (1,953)
Share of profit of long-term investment in associates 2 5
Consolidated profit before income tax 21,302 21,429
c. Capital expenditure reconciliation
2023 2022
Total segment capital expenditure (14,970) (13,460)
Capital expenditure from
other non-operating segments (70) (35)
Consolidated capital expenditure (15,040) (13,495)
d. Depreciation and amortization reconciliation
2023 2022
Total segment depreciation and amortization (18,269) (19,120)
Depreciation and amortization from
other non-operating segments (128) (133)
Adjustment and inter-segment elimination 2,449 2,267
Consolidated depreciation and amortization (15,948) (16,986)
e. Provision recognized in current period
2023 2022
Total segment provision (819) (704)
Provision recognized from other
non-operating segments (1) (7)
Adjustment and inter-segment elimination 17 15
Consolidated provision recognized
in current period (803) (696)
Geographic information:
2022 2021
External revenues
Indonesia 69,607 69,573
Foreign countries 3,871 2,410
Total 73,478 71,983
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
June 30, 2023 and 2022.
Juni 30, 2023 December 31, 2022
Non-current operating assets
Indonesia 180,684 178,424
Foreign countries 2,892 3,207
Total 183,576 181,631
Non-current operating assets for this purpose consist of property and equipment and intangible assets.
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 June 30, 2023 and For the Six 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.
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 June 30, 2023 and For the Six 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 June 30, 2023, capital expenditures committed under the contractual arrangements are
Rp9,024 billion and US$240 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")
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 June 30, 2023 and For the Six 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 June 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 24
BNI 500 March 31, 2024 Rp 98
Bank Mandiri 500 December 23, 2023 Rp 109
Total 1,500 231
(ii) As of June 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 618
BNI 2,100 December 11, 2023 Rp 1,432
Total 3,100 2,050
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 US$15 million or equal to Rp225 billion bank guarantee from Bank Mandiri and has
been renewed on December 23, 2022, with a maximum credit limit of US$25 million or equal
to Rp375 billion. The facility will expire on December 23, 2023. As of June 30, 2023, Telin has
not had outstanding bank guarantee facility.
c. Others
(i) Radio frequency usage
With reference to Telecommunication Law No. 36 Year 1999, based on 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:
1. Mobile telecommunication services with radio frequency bandwidth in the 800 MHz,
900 MHz, 1,800 MHz, 2.1 GHz and 2.3 GHz; and
2. Basic telecommunication services.
With reference to Decision Letters No. 191 Year 2013, No.509 Year 2016, No. 1896 year 2017,
No. 806 Year 2019, No.620 Year 2020, No. 178 Year 2021, No. 479 Year 2022, and No. 90
Year 2023 of the MoCI, Telkomsel is required, among other things, to:
1. Issue a performance bond each year amounting to Rp20 billion and a surety bond
amounting Rp617.15 billion for spectrum 2.1 GHz.
2. Issue a surety bond each year amounting Rp1.03 trillion for spectrum 2.3 GHz.
3. Issue a surety bond each year amounting Rp360 billion for both spectrum 2.3 GHz
Block A and C.
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.
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 June 30, 2023 and For the Six 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
Based on Decree No. 191 Year 2013 of the MoCI, concerning the appointment of
PT Telekomunikasi Selular to use 2.1 GHz radio frequency for band 1,970 - 1,975 MHz
paired with 2,160 - 2,165 MHz, the MoCI granted to utilize the license until March 18, 2023.
On February 27, 2023, the MoCI issued Decree No. 90 Year 2023 concerning the extension
of the Company’s license until March 18, 2033, which had been refarming to radio band
1,975 - 1,980 MHz paired with 2,165 - 2,170 MHz based on Decree No. 76 Year 2023 of
the MoCI.
Based on Decree No. 509 Year 2016 of the MoCI, concerning the extension of the
determination of radio frequency 2.1 GHz for band 1,940 - 1,945 MHz paired with 2,130 -
2,135 MHz, the MoCI granted the extension of the license until March 28, 2026.
In February 2023, based on Decree No. 76 Year 2023 of the MoCI, this radio frequency
was changed through refarming to 1,970 - 1,975 MHz paired with 2,160 - 2,165 MHz.
Based on Decree No. 806 Year 2019 of the MoCI (previously was regulated on Decree
No. 356 Year 2018), concerning the extension of the determination of radio frequency 2.1
GHz for band 1,935 - 1,940 MHz paired with 2,125 - 2,130 MHz, the MoCI granted the
extension of the license until September 30, 2029. In February 2023, based on Decree
No. 76 Year 2023 of the MoCI, this radio frequency was changed through refarming to
1,965 - 1,970 MHz paired with 2,155 - 2,160 MHz.
Based on Decree No. 479 Year 2022 of the MoCI, concerning the appointment of
Telkomsel as winner of auction of 2.1 GHz radio frequency for band 1,975 - 1,980 MHz
paired with 2,165 - 2,170 MHz effective from January 11, 2023.
3. Radio frequency for band up to 2.3 GHz
Based on Decree No. 1896 Year 2017 of the MoCI, concerning the appointment of
PT Telekomunikasi Selular to use 2.3 GHz radio frequency for band 2,300 - 2,330 MHz.
4. Radio frequency for band up to 2.3 GHz Block A and C
Based on Decree No. 178 Year 2021 of the MoCI, concerning the appointment of
PT Telekomunikasi Selular to use 2.3 GHz radio frequency for band 2,300 - 2,390 MHz,
Telkomsel shall pay the annual BHP IPFR for Block A and Block C until 2030. In September
2021, these radio frequency bands had been refarming and were changed to 2,330 - 2,340
MHz and 2,340 - 2,350 MHz for Block A and Block C, respectively.
Based on Decree No. 487 Year 2022 of the MoCI, Telkomsel received a right to use
reallocated 2.3 GHz radio frequency from PT Berca Hardayaperkasa effective from
November 18, 2022. In February 2023, the MoCI issued a Decree No. 92 Year 2023
concerning the refarming of the 2.3 GHz radio frequency band was changed to 2,340 -
2,355 MHz and 2,330 - 2,360 MHz for selected areas.
In April 2023, Telkomsel received a Decree of the MoCI No. 188 Year 2023 which granted
Telkomsel an approval to allocate part of the Telkomsel’s rights-of-use of 2.3 GHz radio
frequency spectrum resulted from Decree No. 487 Year 2022 of the Ministry to PT
Smartfren Telecom Tbk.
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 June 30, 2023 and For the Six 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
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.
As of June 30, 2023, the Company has recognized the 1st installment of network recovery
fees and annual utilization fees amounting to Rp937.29 billion 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:
June 30, 2023 December 31, 2022
Less than 1 year 2,836 2,582
1-5 years 9,315 8,354
More than 5 years 5,692 5,107
Total 17,843 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.
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 June 30, 2023 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
d. Others (continued)
(iv) USO (continued)
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.
36. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
June 30, 2023
U.S Dollar Japanese Yen Others* Rupiah equivalent
(in millions) (in millions) (in millions) (in billions)
Assets
Cash and cash equivalents 312.21 5.72 14.52 4,904
Other current financial assets 28.36 - 0.01 426
Trade receivables
Related parties 0.14 - - 2
Third parties 98.13 - 10.16 1,627
Contract assets 27.88 - - 419
Other receivables 0.85 - 1.04 28
Other current assets 0.81 - 0.46 19
Long-term investment in financial instruments 399.72 - 9.09 6,129
Other non-current assets 0.48 - 0.54 15
Total assets 868.58 5.72 35.82 13,569
Liabilities
Trade payables
Related parties (0.03) - - (0)
Third parties (143.62) (73.50) (2.71) (2,205)
Other payables (1.05) - (1.53) (40)
Accrued expenses (35.04) (3.91) (2.10) (557)
Advances from customers (3.11) - (0.07) (47)
Current maturities of long-term borrowings (15.27) (767.90) (4.82) (382)
Long-term borrowings - net of current maturities (17.06) (383.95) (27.98) (717)
Other liabilities (2.00) - (3.46) (38)
Total liabilities (217.18) (1,229.26) (42.67) (3,986)
Assets (liabilities) - net 651.40 (1,223.54) (6.85) 9,583
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.
103
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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 June 30, 2023 and For the Six 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
June 30, 2023 December 31, 2022
Amortized cost
Cash and cash equivalents 40,521 31,947
Other current financial assets 1,029 1,268
Trade receivables 10,151 8,634
Other receivables 1,419 245
Other non-current assets 164 186
FVTPL
Long-term investment in financial instruments 9,087 8,508
Other current financial assets 373 81
FVTOCI
Long-term investment in financial instruments 22 22
Total financial assets 62,766 50,891
(b) Financial liabilities
June 30, 2023 December 31, 2022
Financial liabilities measured at amortized cost
Trade payables 15,370 18,457
Other payables 16,075 463
Accrued expenses 13,717 15,445
Customers deposits 35 44
Short-term bank loans 15,129 8,191
Two-step loans 134 209
Bonds 4,793 4,793
Long-term bank loans 34,959 29,873
Other borrowings 843 1,314
Lease liabilities 18,492 18,661
Total financial liabilities 119,547 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
June 30, 2023 value Fair value (level 1) (level 2) (level 3)
FVTPL
Other current financial assets 373 373 373 - -
Long-term investment in financial instruments 9,087 9,087 2,615 - 6,472
FVTOCI
Long-term investment in financial instruments 22 22 - - 22
Financial liabilities at amortized cost
Interest-bearing loans and other
borrowings:
Two-step loans 134 132 - - 132
Bonds 4,793 5,697 5,697 - -
Long-term bank loans 34,959 34,649 - - 34,649
Other borrowings 843 840 - - 840
Lease liabilities 18,492 18,492 - - 18,492
Total 68,703 69,292 8,685 - 60,607
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 June 30, 2023 and For the Six 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 six months period ended June 30, 2023 amounting to
Rp(93) billion.
Reconciliations of the beginning and ending balances for items measured at fair value using
significant unobservable inputs (level 3) for the six months period ended June 30, 2023 and for
the years ended December 31, 2022 are as follows:
June 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 229 1,338
Settlement/deduction - (24)
Ending balance 6,494 6,358
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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 June 30, 2023 and For the Six 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.
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 June 30, 2023 and For the Six 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:
June 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 0.87 0.01 0.78 0.01
Financial liabilities (0.22) (1.23) (0.19) (1.57)
Net exposure 0.65 (1.22) 0.59 (1.56)
Sensitivity analysis
A strengthening of the U.S. Dollar and Japanese Yen, as indicated below, against the Rupiah
at June 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)
June 30, 2023
U.S. Dollar (1% strengthening) 98
Japanese Yen (5% strengthening) (6)
A weakening of the U.S. Dollar and Japanese Yen against the Rupiah at June 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 June 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.
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 June 30, 2023 and For the Six 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:
June 30, 2023 December 31, 2022
Fixed rate borrowings (41,972) (27,767)
Variable rate borrowings (32,378) (35,274)
Sensitivity analysis for variable rate borrowings
As of June 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 Rp81 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:
June 30, 2023 December 31, 2022
Cash and cash equivalents 40,521 31,947
Other current financial assets 1,402 1,349
Trade receivable 10,151 8,634
Other receivable 1,419 245
Other non-current assets 164 186
Total 53,657 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 3.33% of trade receivables as of June 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.
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 June 30, 2023 and For the Six 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
June 30, 2023
Trade and other payables 15,370 (15,370) (15,370) - - - -
Trade and other payables 16,075 (16,075) (16,075) - - - -
Accrued expenses 13,717 (13,717) (13,717) - - - -
Customer deposits 35 (35) (35) - - - -
Interest bearing loans and
other borrowings:
Short-term bank loans 15,129 (15,129) (15,129) - - - -
Two-step loans 134 (137) (96) (41) - - -
Bonds 4,793 (9,842) (510) (255) (2,574) (293) (6,210)
Long-term bank loans 34,959 (41,343) (15,506) (4,180) (7,468) (5,754) (8,435)
Other borrowings 843 (875) (875) - - - -
Lease liabilities 18,492 (21,116) (5,953) (798) (2,957) (2,565) (8,843)
Total 119,547 (133,639) (83,266) (5,274) (12,999) (8,612) (23,488)
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 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.
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 June 30, 2023 and For the Six 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:
June 30, 2023 December 31, 2022
Amount Portion Amount Portion
Short-term debts 15,129 7.63% 8,191 4.26%
Long-term debts 59,221 29.88% 54,850 28.52%
Total debts 74,350 37.51% 63,041 32.78%
Equity attributable to owners
of the parent company 123,845 62.49% 129,258 67.22%
Total 198,195 100.00% 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 June 30, 2023 and December 31, 2022, respectively were as
follows:
June 30, 2023 December 31, 2022
Total interest-bearing debts 74,350 63,041
Less: cash and cash equivalents (40,521) (31,947)
Net debts 33,829 31,094
Total equity attributable to owners of the parent
company 123,845 129,258
Net debt-to-equity ratio 27.32% 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 June 30, 2023 and December 31, 2022,
the Group has complied with externally imposed capital requirements.
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 June 30, 2023 and For the Six 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 six months ended June 30, 2023 and 2022 are as follows:
2023 2022
Acquisition of property and equipment:
Credited to trade payables 3,145 2,814
Borrowing cost capitalization 63 25
Addition of right of uses assets credited
to leases (Note 12) 4,755 1,406
Acquisition of intangible assets:
Credited to trade payables 380 444
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 June 30, 2023
Short-term bank loans 8,191 6,938 - - - 15,129
Two step loans 209 (65) (10) - - 134
Bonds 4,793 - - - - 4,793
Long-term bank loans 29,873 5,098 (26) - 14 34,959
Other borrowings 1,314 (472) - - 1 843
Lease liabilities 18,661 (3,113) (30) 4,755 (1,781) 18,492
Total liabilities from
financing activities 63,041 8,386 (66) 4,755 (1,766) 74,350
40. SUBSEQUENT EVENTS
a. On July 7, 2023 and July 21, 2023, Telkomsel paid partially the outstanding short-term and medium-
term loans to Mandiri, BSI, BNI, BCA and BJB amounting to Rp6,500 billion.
b. On July 20, 2023, Telkomsel withdrawn facilities from BSI amounting to Rp500 billion.
c. On July 26, 2023, Mitratel acquire 90 telecommunication towers belonging to PT Priview Geospatial
Mandiri amounting to Rp121 billion.
d. On July 28, 2023, The Company withdrawn facilities from Bank HSBC Indonesia amounting to
Rp800 billion.
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