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Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. and its subsidiaries Consolidated financial statements as of September 30, 2024 and for the nine months period then ended (unaudited)
Page 2
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2024 AND FOR THE NINE MONTHS PERIOD THEN ENDED
(UNAUDITED)
TABLE OF CONTENTS
Page
Statement of the Board of Directors
Consolidated Statements of Financial Position 1
Consolidated Statements of Profit or Loss and Other Comprehensive Income 2
Consolidated Statements of Changes in Equity 3-4
Consolidated Statements of Cash Flows 5
Notes to the Consolidated Financial Statements 6-110
Page 3
Statement of the Board of Directors
regarding the Board of Director’s Responsibility for
Consolidated Financial Statements
as of September 30, 2024 and for nine months period ended (unaudited)
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk and its Subsidiaries
On behalf of the Board of Directors, we the undersigned:
1. Name : Ririek Adriansyah
Business address : Jl. Japati No.1 Bandung 40133
Address : Jl. Karang Tengah Raya Pertanian I/99 RT 05 RW 04
Kelurahan Lebak Bulus, Kecamatan Cilandak, Jakarta Selatan
Phone : (022) 452 7101
Position : President Director
2. Name : Heri Supriadi
Business address : Jl. Japati No.1 Bandung 40133
Address : Jl. Rancamayar No. 18 RT 001 RW 008
Kelurahan Gumuruh Kecamatan Batununggal, Bandung
Phone : (022) 452 7201/ (021) 520 9824
Position : Director of Finance and Risk Management
hereby state as follows:
1. We are responsible for the preparation and presentation of the consolidated financial statement of
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (the “Company”) and its subsidiaries
as of September 30, 2024 and for nine months period ended;
2. The Company and its subsidiaries’ consolidated financial statement as of September 30, 2024 and for
nine months period ended have been prepared and presented in accordance with Indonesian Financial
Accounting Standards;
3. All information has been fully and correctly disclosed in the Company and its subsidiaries’ consolidated
financial statement;
4. The Company and its subsidiaries’ consolidated financial statement do not contain false material
information or facts, nor do they omit any material information or facts;
5. We are responsible for the Company and its subsidiaries’ internal control system.
This statement is considered to be true and correct.
Jakarta, October 30 , 2024
for and behalf of
PT Telkom Indonesia (Persero) Tbk.
Ririek Adriansyah Heri Supriadi
President Director Director of Finance and Risk Management
Page 4
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of September 30, 2024 (unaudited) and December 31, 2023 (audited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
Notes September 30, 2024 December 31, 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents 3,32,37 24,540 29,007
Other current financial assets 4,32,37 2,771 1,661
Trade receivables - net allowance for expected
credit losses
Related parties 5,32,37 2,195 1,918
Third parties 5,37 10,375 8,749
Contract assets 6,32 2,727 2,704
Inventories 7 903 997
Contract cost 9 1,256 653
Claim for tax refund and prepaid taxes 27 2,639 1,928
Other current assets 8,32 4,963 7,996
Total Current Assets 52,369 55,613
NON-CURRENT ASSETS
Contract assets 6,32 21 26
Long-term investments 10 7,676 8,162
Contract cost 9 1,569 1,568
Property and equipment 11,32,35a 179,648 180,755
Right-of-use assets 12a 26,094 22,584
Intangible assets 14 9,094 8,731
Deferred tax assets 27f 3,443 4,170
Other non-current assets 13,27,32 5,220 5,433
Total Non-current Assets 232,765 231,429
TOTAL ASSETS 285,134 287,042
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables
Related parties 15,32,37 473 585
Third parties 15,37 13,908 18,023
Contract liabilities 17a,32 6,670 6,848
Other payables 37 405 441
Taxes payable 27c 3,136 4,525
Accrued expenses 16,32,37 13,050 13,079
Customer deposits 32 3,110 2,566
Short-term bank loans 18a,32,37 10,655 9,650
Current maturities of long-term
loans and other borrowings 18b,32,37 16,623 10,276
Current maturities of lease liabilities 12a,37 6,948 5,575
Total Current Liabilities 74,978 71,568
NON-CURRENT LIABILITIES
Deferred tax liabilities 27f 869 841
Contract liabilities 17b,32 2,569 2,591
Long service award provisions 31 1,268 1,153
Pension benefits and other post-employment
benefits obligations 30 11,900 11,414
Long-term loans and other borrowings 19,32,37 22,222 27,773
Lease liabilities 12a,37 16,691 14,850
Other liabilities 286 290
Total Non-current Liabilites 55,805 58,912
TOTAL LIABILITIES 130,783 130,480
EQUITY
Capital stock 21 4,953 4,953
Additional paid-in capital 2,711 2,711
Other equity 22 9,498 9,639
Retained earnings
Appropriated 29 15,337 15,337
Unappropriated 103,203 103,104
Net equity attributable to:
Owners of the parent company 135,702 135,744
Non-controlling interest 20 18,649 20,818
TOTAL EQUITY 154,351 156,562
TOTAL LIABILITIES AND EQUITY 285,134 287,042
The accompanying notes form an integral part of these consolidated financial statements.
1
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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 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Nine Months Period Ended September 30, 2024 and 2023 (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
Notes 2024 2023
REVENUES 23,32 112,219 111,238
COST AND EXPENSES
Operation, maintenance, and telecommunication
service expenses 25,32 (29,977) (28,864)
Depreciation and amortization expenses 11,12a,14 (24,250) (24,081)
Personnel expenses 24 (13,156) (11,678)
Interconnection expenses 32 (5,008) (4,525)
General and administrative expenses 26,32 (4,924) (4,520)
Marketing expenses 32 (2,527) (2,588)
Unrealized loss on changes in fair value of investments 10 (476) (182)
Other income - net 574 223
Loss on foreign exchange - net (25) (41)
OPERATING PROFIT 32,450 34,982
Finance income 32 1,020 758
Finance cost 32 (3,857) (3,462)
Share of profit of long-term investment in associates 10 4 4
PROFIT BEFORE INCOME TAX 29,617 32,282
INCOME TAX (EXPENSE) BENEFIT 27d
Current (5,894) (6,897)
Deferred (702) 4
(6,596) (6,893)
PROFIT FOR THE PERIOD 23,021 25,389
OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income (loss) to be reclassified to profit or
loss in subsequent periods:
Foreign currency translation 22 (141) (33)
Other comprehensive income (loss) not to be reclassified to profit
or loss in subsequent periods:
Defined benefit actuarial gain (loss) - net 30 152 (1,429)
Other comprehensive income (loss) - net 11 (1,462)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 23,032 23,927
Profit for the period attributable to:
Owners of the parent company 17,675 19,499
Non-controlling interests 20 5,346 5,890
23,021 25,389
Total comprehensive income for the period attributable to:
Owners of the parent company 17,641 18,037
Non-controlling interests 5,391 5,890
23,032 23,927
BASIC EARNINGS PER SHARE
(in full amount) 28
Profit per share 178.42 196.84
Profit per ADS (100 Series B shares per ADS) 17,842.32 19,683.59
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 STATEMENTS OF CHANGES IN EQUITY
For the Nine Months Period Ended September 30, 2024 and 2023 (unaudited)
(Amounts in the tables are expressed in billions of 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, 2024 4,953 2,711 9,639 15,337 103,104 135,744 20,818 156,562
Changes in non-controlling interest - - - - - - 7 7
Cash dividend 29 - - - - (17,683) (17,683) (7,096) (24,779)
Repurchase of non-controlling interest shares 1e - - - - - - (471) (471)
Profit for the period 20 - - - - 17,675 17,675 5,346 23,021
Other comprehensive income (loss) - net - - (141) - 107 (34) 45 11
Balance, September 30, 2024 4,953 2,711 9,498 15,337 103,203 135,702 18,649 154,351
The accompanying notes form an integral part of these consolidated financial statements.
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Page 7
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 (continued)
For the Nine Months Period Ended September 30, 2024 and 2023 (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
Attributable to owners of the parent company
Retained earnings
Capital Additional Non-controlling
Description Notes 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
Additional capital contributions from non-controlling interests
of subsidiary 1e - - - - - - 2,713 2,713
Changes in non-controlling interest - - - - - - 13 13
Cash dividend 29 - - - - (16,602) (16,602) (9,802) (26,404)
Repurchase of non-controlling interest shares 1e - - - - - - (18) (18)
Profit for the period 20 - - - - 19,499 19,499 5,890 25,389
Other comprehensive income - net - - (33) - (1,429) (1,462) - (1,462)
Balance, September 30, 2023 4,953 2,711 9,664 15,337 98,028 130,693 18,800 149,493
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Period Ended September 30, 2024 and 2023 (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
Notes 2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers and other operators 109,057 111,475
Cash receipts from interests 1,020 755
Cash receipts from tax refund 881 100
Cash payments for expenses (35,830) (41,740)
Cash payments to employees (13,524) (12,877)
Cash payments for corporate and final income taxes (8,802) (8,001)
Cash payments for finance costs (3,903) (3,548)
Cash payments for short-term and low-value lease assets 12a (2,604) (2,234)
Cash payments for value added taxes - net (834) (1,112)
Cash receipts from (payments for) others - net 494 (41)
Net cash provided by operating activities 45,955 42,777
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property and equipment 11 706 83
Proceeds from insurance claims 11 111 160
Decrease of other assets 64 228
Dividend received from associated company 3 14
Purchase of property and equipment 11,39 (18,485) (22,733)
Purchase of intangible assets 14,39 (2,719) (1,588)
Placement in other current financial assets - net (1,157) (427)
Addition of long-term investment in financial instrument (36) (315)
Acquisition of tower by subsidiary - (1,684)
Net cash used in investing activities (21,513) (26,262)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans and other borrowings 18,19 31,907 32,196
Proceeds from issuance of new shares of subsidiaries - 2,713
Repayments of loans and other borrowings 18,19 (30,086) (26,448)
Cash dividend paid to the Company's stockholders 21 (17,683) (16,602)
Cash dividend paid to non-controlling interests of subsidiaries 20 (7,096) (9,802)
Repayments of principal portion of lease liabilities 39 (5,399) (4,556)
Placement in shares buyback of subsidiary 1e (471) (18)
Net cash used in financing activities (28,828) (22,517)
NET DECREASE IN CASH AND CASH EQUIVALENTS (4,386) (6,002)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS (80) (39)
ALLOWANCE FOR EXPECTED CREDIT LOSSES (1) (1)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 3 29,007 31,947
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 3 24,540 25,905
The accompanying notes form an integral part of these consolidated financial statements.
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Page 9
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL
a. Establishment and general information
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. (the “Company”) was
originally part of “Post en Telegraafdienst”, which was established and operated commercially in
1884 under the framework of Decree No. 7 dated March 27, 1884 of the Governor General of the
Dutch Indies 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”).
The Company was established based on Notarial Deed of Imas Fatimah, S.H., No. 128 dated
September 24, 1991. 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 had been amended several times, with 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 Company’s Articles of Association as stated in the Notarial Deed of Ashoya
Ratam, S.H., M.Kn. No. 37 dated June 22, 2022 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 the 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 the Company’s
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. To achieve these 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 the prevailing laws and regulations;
(b) Planning, developing, providing, marketing or selling, and improving telecommunications
and information services in a broad sense in accordance with the prevailing laws and
regulations;
(c) Investing, including in the form of equity contribution 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 transfer services through
telecommunications and information networks;
(b) Performing other activities and undertakings in connection with the optimization of the
Company's resources, which includes the utilization of the Company's property and
equipment and movable assets, information systems, education and training, and repair
and maintenance facilities;
(c) Collaborating with other parties in order to optimize the information, communication or
technology resources owned by other service provider in information, communication and
other technology industries to achieve the purposes and objectives of the Company.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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, given that the Company complies with the 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 comprise of several informations, 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:
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 of electronic Bank Indonesia License Electronic 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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Page 11
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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 the 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. 58 dated
May 28, 2024 and No. 35 dated June 23, 2023, the composition of the Company’s Boards of
Commissioners and Directors as of September 30, 2024 and December 31, 2023,
respectively, were as follows:
September 30, 2024 December 31, 2023
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
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 Silmy Karim
President Director Ririek Adriansyah Ririek Adriansyah
Director of Enterprise
F.M. Venusiana R. F.M. Venusiana R.
& Business Service
Director of Digital Business Muhamad Fajrin Rasyid Muhamad Fajrin Rasyid
Director of Human
Capital Management Afriwandi Afriwandi
Director of Finance &
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 Honesti Basyir
ii. Audit Committee, Corporate Secretary, and Internal Audit
The composition of the Company’s Audit Committee, Corporate Secretary, and Internal Audit
as of September 30, 2024 and December 31, 2023, respectively, were as follows:
September 30, 2024 December 31, 2023
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
Member Emmanuel Bambang Emmanuel Bambang
Suyitno Suyitno
Member Edy Sihotang Edy Sihotang
Corporate Secretary Octavius Oky Prakarsa Anetta Hasan
Internal Audit Mohamad Ramzy Daru Mulyawan
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Page 12
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
b. Company’s Board of Commissioners, Board of Directors, Audit Committee, Corporate
Secretary, Internal Audit, and Employees (continued)
iii. Employees
As of September 30, 2024 and December 31, 2023, the Company and its subsidiaries
(collectively referred to as “the Group”) had 19,456 employees and 20,605 employees
(unaudited), 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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Page 13
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
c. Public offering of securities of the Company (continued)
During the period 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 of Ashoya Ratam, S.H., M.Kn.,
No. 38 dated April 19, 2013, 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. 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.
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, as covered by Notarial Deed of Ashoya Ratam, S.H., M.Kn.,
No. 35 dated May 15, 2018, the stockholders approved the changes of the Company’s plan on the
transfer of shares from the repurchase through the withdrawal of 1,737,779,800 shares of treasury
stock, by reducing the issued and paid-up capital from the initial amount of Rp5,040 billion into
amount of Rp4,953 billion. Thus, in order to comply with the provisions of Article 33
UU No. 40 of 2007 concerning Limited Liability Companies, the AGM approved the reduction of the
Company's authorized capital from the original Rp20,000 billion to Rp19,500 billion, so the
Company's total authorized share capital became 1 Series A Dwiwarna and 389,999,999 Series B
shares.
As of September 30, 2024, all of the Company’s Series B shares are listed on the IDX and
45,388,939 ADS or equivalent to 4,538,893,880 Series B shares are listed on the NYSE (Note 21).
On June 16, 2015, the Company issued Continuous Bonds I Telkom Phase I 2015, with nominal
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, all of which are listed on the IDX (Note 19b).
10
Page 14
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries
As of September 30, 2024 and December 31, 2023, the Company has consolidated the following
directly and indirectly owned subsidiaries (Notes 2b and 2d):
i. Direct subsidiaries:
Total assets before
Start year of Percentage of ownership* elimination
operation September 30, December 31, September 30, December 31,
Subsidiary Nature of business commencement 2024 2023 2024 2023
PT Telekomunikasi Mobile 1995 70 70 109,811 112,966
Selular telecommunication,
(“Telkomsel”) fixed broadband, network
service, and IPTV
PT Dayamitra Leasing of towers and 1995 72 72 56,977 57,010
Telekomunikasi Tbk. digital support services
(“Mitratel”) for mobile infrastructure
PT Multimedia Network 1998 100 100 17,981 18,457
Nusantara telecommunication
(“Metra”) services and multimedia
PT Telekomunikasi International 1995 100 100 17,634 15,175
Indonesia telecommunication
International and information
(“Telin”) services
PT Telkom Data Data center 1996 100 100 9,136 4,059
Ekosistem
(“TDE”)
PT Telkom Satelit Telecommunication - 1996 100 100 8,502 7,938
Indonesia provides satellite
(“Telkomsat”) communication
system and its
related services
PT Sigma Cipta Hardware and software 1988 100 100 6,080 7,616
Caraka computer consultation
(“Sigma”) service
PT Graha Sarana Duta Developer, trade, service 1982 100 100 5,997 5,614
("GSD") and transportation
PT Telkom Akses Construction, service 2013 100 100 4,052 4,777
(“Telkom Akses”) and trade in the field of
telecommunication
PT Telkom Network 2024 100 100 2,562 0
Infrastruktur telecommunication
Indonesia and information services
(“TIF”)
PT Metra-Net Multimedia portal service 2009 100 100 2,423 1,654
(“Metra-Net”)
PT Infrastruktur Developer service and 2014 100 100 1,265 1,261
Telekomunikasi trading in the field
Indonesia of telecommunication
(“Telkom Infra”)
PT PINS Indonesia Trade in telecommunication 1995 100 100 705 775
(“PINS”) devices
PT Napsindo Telecommunication - 1999; ceased 60 60 5 5
Primatel provides Network operations on
Internasional Access Point ("NAP"), January 13,
(“Napsindo”) Voice Over Data ("VOD") 2006
and other related services
*Percentage of ownership amounting to 99.99% is presented into rounding of 100%.
All direct subsidiaries are domiciled in Indonesia.
11
Page 15
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries:
Total assets before
Start year of Percentage of ownership* elimination
operation September 30, December 31, September 30, December 31,
Subsidiary Nature of business commencement 2024 2023 2024 2023
PT Metra Digital Trading, information 2013 100 100 8,649 8,556
Investama and multimedia
(“MDI”) technology,
entertainment
and investment
services
Telekomunikasi Telecommunication 2008 100 100 5,661 3,499
Indonesia and related
International Pte. Ltd. services
("Telin Singapore"),
domiciled in
Singapore
Telekomunikasi Investment 2010 100 100 4,533 3,842
Indonesia holding and
International Ltd. telecommunication
("Telin Hong Kong"), services
domiciled in
Hong Kong
NeutraDC Data center 2024 100 100 3,371 -
Singapore Pte. Ltd.
(“NeutraDC Singapore”)
domiciled in
Singapore
PT Infomedia Information provider 1984 100 100 2,313 2,248
Nusantara services, contact
(“Infomedia”) center and content
directory
PT Telkom Landmark Property development 2012 55 55 2,256 1,986
Tower and management
(“TLT”) services
PT Nuon Digital Digital content 2010 100 100 1,796 1,194
Indonesia exchange hub
(“Nuon”) services
PT Persada Sokka Leasing of towers 2008 100 100 1,751 1,622
Tama and other
("PST") telecommunication
services
PT Finnet Indonesia Information 2006 60 60 1,477 1,761
(“Finnet”) technology
services
PT Telkomsel Mitra Business 2019 100 100 1,017 1,030
Inovasi management
(“TMI”) consulting and
investment
services
Telekomunikasi Telecommunication 2012 100 100 962 1,082
Indonesia networks, mobile,
International (TL) S.A. internet, and
("Telkomcel"), data services
domiciled in
Timor Leste
PT Metra Digital Telecommunication 2013 100 100 907 993
Media information and
(“MD Media”) other information
services
*Percentage of ownership amounting to 99.99% is presented into rounding of 100%
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
12
Page 16
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries (continued):
Total assets before
Start year of Percentage of ownership* elimination
operation September 30, December 31, September 30, December 31,
Subsidiary Nature of business commencement 2024 2023 2024 2023
PT Teknologi Data Telecommunication 2013 60 60 886 606
Infrastruktur service and
(“TDI”) data center
PT Administrasi Health insurance 2003 100 100 742 757
Medika administration
(“Ad Medika”) services
PT Telkomsel Business management 2021 100 100 646 777
Ekosistem Digital consulting services
("TED") and investment
and/or investment
in other companies
PT Digital Aplikasi Communication 2014 100 100 444 341
Solusi system services
("Digiserve")
PT Swadharma Cash replenishment 2001 51 51 403 397
Sarana Informatika services and
(“SSI”) ATM maintenance
TS Global Satellite services 1996 70 70 339 420
Network Sdn. Bhd.
(“TSGN”),
domiciled in
Malaysia
PT Graha Yasa Tourism and 2012 51 51 299 290
Selaras hospitality services
(”GYS”)
PT Nusantara Sukses Service and trading 2014 100 100 291 292
Investasi
(“NSI”)
Telekomunikasi Telecommunication 2014 100 100 242 212
Indonesia and information
International (USA) Inc. services
(“Telin USA”),
domiciled in USA
PT Nutech Integrasi System integrator 2001 60 60 220 227
(“Nutech”) service
PT Collega Inti Trading and services 2001 70 70 195 191
Pratama
("CIP")
PT Graha Telkomsigma Management and 1999 100 100 176 333
("GTS") consultation
services
PT Media Nusantara Consultation services 2012 55 55 142 136
Data Global of hardware, software,
("MNDG") data center, and
internet exchange
Telekomunikasi Telecommunication 2013 70 70 139 125
Indonesia International and information
(Malaysia) Sdn. Bhd. services
(”Telin Malaysia”),
domiciled in
Malaysia
*Percentage of ownership amounting to 99.99% is presented into rounding of 100%
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
13
Page 17
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries (continued):
Total assets before
Start year of Percentage of ownership* elimination
operation September 30, December 31 September 30, December 31
Subsidiary Nature of business commencement 2024 2023 2024 2023
Telekomunikasi Telecommunication 2013 100 100 56 67
Indonesia and information
International services
(Australia) Pty. Ltd.
(“Telin Australia”),
domiciled in
Australia
PT Metra TV Subscription 2013 100 100 53 50
(“Metra TV”) broadcasting
services
PT Metraplasa Network and 2012; ceased 60 60 29 30
(“Metraplasa”) e-commerce operations on
services October, 2020
PT Pojok Celebes Travel agent services 2008 100 100 27 44
Mandiri
("PCM")
PT Bosnet Distribution Trade and consultation 2012 20 60 - 40
Indonesia services
(“BDI”)**
* Percentage of ownership amounting to 99.99% is presented into rounding of 100%
** BDI is no longer a subsidiary entity with indirect ownership (Note 1e).
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
e. Other important informations
i. Telkomsel
On June 27, 2023, the Company signed the Spin-off Decree of IndiHome Business to
Telkomsel in Notarial Deed Aulia Taufani, S.H., No. 140 that has been approved by AGM of
Stockholders based on Notarial Deed of Ashoya Ratam, S.H., M.Kn., No. 35 dated June 23,
2023. The value of IndiHome business segment transferred is Rp58,250 billion. In parallel,
Singapore Telecom Mobile Pte. Ltd. ("Singtel"), Telkomsel's minority shareholder, also
decided to participate in the capital injection in the form of cash to Telkomsel of Rp2,713 billion.
As the result of this, starting from July 1, 2023, the Company's effective ownership in
Telkomsel increased from 65% to 69.9% and Singtel's ownership is diluted from 35% to 30.1%.
ii. Mitratel
Share buyback
On March 6, 2023, Mitratel announced another share buyback with a maximum amount of
Rp1,500 billion. The buyback period for Mitratel's shares starts from April 14, 2023. As of
December 31, 2023 Mitratel has conducted share buyback amounting to 47,700,000 shares
or equivalent to Rp31 billion. Furthermore, from January 1, 2024 until September 30, 2024
Mitratel has conducted share buyback amounting to 723,575,500 shares or equivalent to
Rp471 billion.
Tower acquisition
(a) On February 15, 2023, based on the Telecommunication Tower Conditional Sale and
Purchase Agreement (“CSPA”) between PT Indosat Tbk and Mitratel to acquire 997
telecommunication towers belonging to Indosat for Rp1,648 billions. Mitratel and Indosat
have also agreed to leaseback of 983 sites for 10 years lease period. In addition, Indosat
have also agreed to deliver order for collocations for next 3 years compensate the
Company for amounted Rp473 billions.
(b) On November 24, 2023, Mitratel acquired 803 telecommunication towers belonging to
PT Gametraco Tunggal for Rp1,753 billion.
14
Page 18
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
e. Other important informations (continued)
iii. TDI
Based on Notarial Deed of Jimmy Tanal, S.H., M.Kn., No. 201 dated October 25, 2023,
the shareholders approved the issuance of 4,825,932 new shares with nominal value per
share of Rp104,438, of which TDE took 2,451,319 shares or amounted to Rp256 billion,
ST Dynamo ID Pte. Ltd. took 2,077,787 shares or amounted to Rp217 billion, and PT Medco
Power Indonesia took 296,826 shares or amounted to Rp31 billion. The additional capital
contribution dilutes TDE's ownership into 60.0%. Effect of this dilution was recognized as
differences in non-controlling interest ownership acquisition transaction of subsidiary
amounted to Rp6 billion.
iv. NeutraDC Singapore
Based on Accounting and Corporate Regulatory Authority Singapore (“ACRA”) documents,
TDE established NeutraDC Singapore which is domiciled in Singapore on December 7, 2023,
by the issuance of 1 share with par value of SGD 1.
Based on ACRA, on February 28, 2024, TDE add capital contribution to NeutraDC Singapore
Pte. Ltd. with 219,411,975 shares with the par value of USD219 millions or amounted to
Rp3,448 billions.
v. TIF
Based on Notarial Deed of Aulia Taufani, S.H. No. 26 dated December 8, 2023, the Company
and Metra established PT Telkom Infrastruktur Indonesia (“TIF”) by the issuance of 125 shares
with total nominal value of Rp12.5 million.
Based on Notarial Deed of Aulia Taufani, S.H. No. 7 dated July 3, 2024, the shareholders
approved the issuance of 19,240,001 new shares with nominal value per share of Rp100,000,
of which the Company took 19,240,000 shares or amounted to Rp1,924 billion and Metra took
1 share or amounted to Rp100 thousand.
vi. Metra
Based on Notarial Deed of Utiek Rochmuljati Abdurachman, S.H., M.L.I., M.Kn., No. 31 dated
February 29, 2024, regarding the acquisition of BDI between Metra and PT Algolab Solution,
where Metra sold 40% of its ownership with a transaction value amounted to Rp29 billion, thus
ownership of Metra in BDI become 20% and BDI is no longer as indirect subsidiary of
the Company.
f. Completion and authorization for the issuance of the consolidated financial statements
The Company’s management is responsible for the preparation and fair presentation of these
consolidated financial statements in accordance with Indonesian Financial Accounting Standards,
which have been completed and authorized for issuance by the Board of Directors of the Company
on October 30, 2024.
15
Page 19
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION
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 the consolidated financial statements
The consolidated financial statements, except for the consolidated statements of cash flows, are
prepared on the accrual basis. The measurement basis used is historical cost, except for certain
accounts which are measured using the basis mentioned in the relevant notes herein.
The consolidated statements of cash flows are prepared using the direct method and present the
changes in cash and cash equivalents from operating, investing, and financing activities.
The reporting currency in the consolidated financial statements is the Indonesian Rupiah (“Rp”)
which is also the functional currency of the Group, except for subsidiaries whose functional
currency is the US Dollar, Australian Dollar, Singapore Dollar and Malaysian Ringgit.
Figures in the consolidated financial statements containing values under Rp1 billion and US$1
million are presented with zero.
New accounting standards
On January 1, 2024, 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 201: Presentation of Financial Statements;
ii. Amendment PSAK 116: Leases;
iii. Amendment PSAK 207: Statements of Cash Flow and PSAK 107 Financial Instruments:
Disclosures.
Financial Accounting Standards Pillars
These standards provides requirements and guidelines for entities to apply the correct financial
accounting standards in preparing general purpose financial statements. There will be 4 (four)
financial accounting standards that are currently applied in Indonesia, namely:
i. Pillar 1 International Financial Accounting Standards;
ii. Pillar 2 Indonesian Financial Accounting Standards (PSAK);
iii. Pillar 3 Indonesian Financial Accounting Standards for Private Entities/Indonesian Financial
Accounting Standards for Entities without Public Accountability, and
iv. Pillar 4 Indonesian Financial Accounting Standards for Micro Small and Medium Entities.
Financial Accounting Standards Nomenclature
This standard regulates the new numbering for financial accounting standards applicable in
Indonesia issued by DSAK IAI.
16
Page 20
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
a. Basis of preparation of the consolidated financial statements (continued)
Accounting standards issued but not yet effective
Effective January 1, 2025
i. Amendment PSAK 221: Effect of Changes in Foreign Exchange Rate
This amendment clarifies the lack of interchangeability.
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 power over the investee, exposure or rights, to variable returns from its
involvement with the investee, and the ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights results in control. To support this
presumption and when the Group has less than a majority of the voting or similar rights of an
investee, the Group considers all relevant facts and circumstances in assessing whether it has
power over an investee, including:
i. The contractual arrangement with the other vote holders of the investee;
ii. Rights arising from other contractual arrangements, and
iii. The Group's voting rights and potential voting rights.
The Group re-assesses whether it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control. Consolidation of a subsidiary
begins when the Group obtains control over the subsidiary and ceases when the Group loses
control over the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated statements of profit or loss and other
comprehensive income from the date the Group gains financial control until the date the Group
ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the
equity holders of the Company and to the non-controlling interests, even if this results in the non-
controlling interests having a deficit balance.
All intra-Group assets and liabilities, equity, revenue and expenses and cash flow relating to
transactions within Group are fully eliminated on consolidation.
In case of loss of control over a subsidiary, the Group:
i. derecognizes the assets (including goodwill) and liabilities of the subsidiary at the carrying
amounts on the date when it loses control;
ii. derecognizes the carrying amounts of any non-controlling interests of its former subsidiary on
the date when it loses control;
iii. recognizes the fair value of the consideration received (if any) from the transaction, events, or
condition that caused the loss of control;
iv. recognizes the fair value of any investment retained in the subsidiary at fair value on the date
of loss of control; and
v. recognizes any surplus or deficit in profit or loss that is attributable to the Group.
17
Page 21
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (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 the net
assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses
whether it has correctly identified all of the assets acquired and all of the liabilities assumed, and
reviews the procedures used to measure the amounts to be 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.
18
Page 22
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
d. Business combinations and goodwill (continued)
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.
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 338, 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 338, all balances of the Difference In Value of Restructuring
Transactions of Entities under Common Control was reclassified to “Additional Paid-in Capital” in
the consolidated statement of financial position.
e. Cash and cash equivalents
Cash and cash equivalents in the consolidated 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.
19
Page 23
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
f. 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.
g. Prepaid expenses
Prepaid expenses are amortized over their future beneficial periods using the straight-line method.
Prepaid expenses are presented in the consolidated statement of financial position as part of other
current assets and other non-current assets.
h. Intangible assets
Intangible assets are recognized if it is highly probable that the expected future economic benefits
that are attributable to each asset will flow to the Group, and the cost of the asset can be reliably
measured.
Intangible assets are stated at cost less accumulated amortization and impairment losses (if any).
Intangible assets are amortized over their estimated useful lives. The amortization period and the
amortization method for an intangible asset with a finite useful life are reviewed at least at the end
of the reporting period. The Group estimates the recoverable value of its intangible assets. When
the carrying amount of an intangible asset exceeds its estimated recoverable amount, the asset is
written down to its estimated recoverable amount.
Intangible assets except goodwill, are amortized using the straight-line method, based on the
estimated useful lives of the intangible assets as follows:
Years
Software 3-6
License 3-20
Other intangible assets 3-30
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.
20
Page 24
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
i. 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 2-10
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. The residual value of an asset is the estimated
amount that the Group would currently obtain from disposal of the asset, after deducting the
estimated costs of disposal, if the asset is already of the age and in the condition expected at the
end of its useful life.
Property and equipment acquired in exchange for a non-monetary asset or for a combination of
monetary and non-monetary assets are measured at fair value unless, (i) the exchange transaction
lacks commercial substance; or (ii) the fair value of neither the asset received, nor the asset given
up is measured reliably.
Major spare parts and standby equipment that are expected to be used for more than 12 months
are recorded as part of property and equipment.
When assets are retired or 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 cannot 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.
21
Page 25
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
i. Property and equipment (continued)
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 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.
j. 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 within PSAK 116, 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 asset (“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).
The Group applies the definition of a lease and related guidance set out in PSAK 116 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.
22
Page 26
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
j. Leases (continued)
i. The Group as lessee (continued)
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 1-30
Transmission installation and equipment 1-25
Vehicles 1-6
Others 1-6
If ownership of the ROU 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 236: 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 116 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
j. Leases (continued)
ii. The Group as lessor
Under PSAK 116, 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 109, an allowance for expected credit loss has been recognized on the
finance lease receivables and presented under “Other receivables” (Note 8).
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 115
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 2n).
k. 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.
24
Page 28
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
l. 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.
m. Foreign currency translations
Transactions in foreign currencies are translated into Indonesian Rupiah at the Reuters’ mid rates
of exchange prevailing at transaction date. At the consolidated statements of financial position
dates, monetary assets and liabilities denominated in foreign currencies are translated into
Indonesian Rupiah based on the buy and sell rates quoted by Reuters prevailing at the consolidated
statements of financial position dates, as follows (in full amount):
September 30, 2024 December 31, 2023
Buy Sell Buy Sell
United States Dollar (“US$”) 1 15,135 15,147 15,396 15,401
Australian Dollar (“AU$”) 1 10,481 10,489 10,499 10,505
Singapore Dollar (“SGD”) 1 11,823 11,833 11,666 11,673
New Taiwan Dollar (“TWD”) 1 477.69 478.45 501.32 501.53
Euro (“EUR”) 1 16,956 16,971 17,025 17,036
Japanese Yen ("JPY") 1 106.18 106.26 108.78 108.82
Malaysian Ringgit ("MYR") 1 3,669 3,677 3,350 3,359
Hong Kong Dollar (“HKD”) 1 1,948 1,950 1,971 1,971
Myanmar Kyat (“MMK”) 1 7.19 7.23 7.31 7.35
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 2i).
25
Page 29
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
n. Revenue and expense recognition
Revenue from contract with customers
PSAK 115 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 the points that are 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. The Group applies terms and conditions
that requires the customer to pay substantive early termination penalty if the customer’s
contract is ended at the customer’s request and/or fault within the first 12 months after the
service is activated. After the initial 12-month period, the customer can decide to stop
subscribing in accordance with the applicable terms and conditions without incurring any
penalties. In accordance with PSAK 115, the contract period is 12 months, which is then
followed by a monthly contract.
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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
n. Revenue and expense recognition (continued)
Revenue from contract with customers (continued)
ii. Consumer (continued)
Customers 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 customer life. 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
n. 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 and cost of fulfilling contract
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 consolidated statements of profit or
loss and other comprehensive income.
28
Page 32
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
n. 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.
o. 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 plan are calculated at the present value of estimated future benefits that the
employees have earned in return for their service in the current and prior periods less the fair
value of plan assets. The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rates of Government bonds that
are denominated in the currencies in which the benefits will be paid and that have terms to
maturity approximating the terms of the related retirement benefit obligation. Government
bonds are used as there are no deep markets for high quality corporate bonds.
Plan assets are assets owned by defined benefit pension plan and post-retirement health care
benefits plan as well as qualifying insurance policy. The assets are measured at fair value as
of reporting dates. The fair value of qualifying insurance policy is deemed to be the present
value of the related obligations (subject to any reduction required if the amounts receivable
under the insurance policies are not recoverable in full).
29
Page 33
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
o. Employee benefits (continued)
ii. Post-employment benefit plans and other long-term employee benefits (continued)
Remeasurement, comprising of actuarial gains and losses, the effect of the asset ceiling
(excluding amounts included in net interest on the net defined benefit liability (asset)) and the
return on plan assets (excluding amounts included in net interest on the net defined benefit
liability (asset)) are 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 amendment or curtailment ; and
(b) the date that the Group recognized restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liabilities or
assets.
Gains or losses on curtailment are 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.
Group attributed benefits under the defined benefit plan’s benefit formula to periods of service
from 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. Early retirement benefit
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
resignation. 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
p. Taxes
Income tax
Current and deferred income taxes are recognized as income or 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 assessments
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 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 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
p. 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 treatments
ISAK 123: 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 prediction
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 taxpayer incurred a loss on the transaction.
Final tax on construction services and leases are presented as part of “other income - net”.
q. 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 or for
which the Group has applied the practical expedient, the Group initially measures a financial
asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs.
Trade receivables that do not contain a significant financing component or for which the Group
has applied the practical expedient are measured at the transaction price determined under
PSAK 115.
32
Page 36
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
q. 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 test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its
financial assets in order to generate cash flows. The business model determines whether cash
flows will result from collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace (regular way trades) are recognized
on the trade date, i.e., the date that the Group commits to sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
(a) Financial assets at 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, trade and other
receivables, other current financial assets, and other non-current assets.
(b) Financial assets at FVTOCI with recycling of cumulative gains and losses (debt
instruments)
The Group measures debt instruments at FVTOCI if both of the following conditions are
met:
• The financial asset is held within a business model with the objective of both holding
to collect contractual cash flows and selling; and
• The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount
outstanding.
For debt instruments at FVTOCI, interest income, foreign exchange revaluation, and
impairment losses or reversals are recognized in the statement of profit or loss and
computed in the same manner as for financial assets measured at amortized cost. The
remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative
fair value change recognized in OCI is recycled to profit or loss.
The Group has no debt instruments classified at FVTOCI with recycling of cumulative
gains and losses as of September 30, 2024 and December 31, 2023.
33
Page 37
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
q. 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 109, Financial Instruments: Presentation and are not held for trading. The
classification is determined on an instrument-by-instrument basis. Gains and losses on
these financial assets are never recycled to consolidated statements of profit or loss and
other comprehensive income. 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 investments 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 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 consolidated statement of financial position
at fair value with net changes in fair value recognized in the consolidated statements of
profit or loss and other comprehensive income. The Group’s financial assets at FVTPL
consists of other long-term investments 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
q. 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 an allowance for expected credit loss methodology 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 a 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 costs.
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 and medium-term notes, 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
q. 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 109 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.
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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
r. 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.
s. 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.
t. Basic earnings per share and earnings per ADS
Basic earnings per share is computed by dividing profit for the year attributable to owners of the
parent company by the weighted average number of shares outstanding during the year. Income
per ADS is computed by multiplying the basic earnings per share by 100, the number of shares
represented by each ADS.
The Company does not have potentially dilutive financial instruments.
u. 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.
v. 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.
w. 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
w. 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 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 cannot be reversed in future periods.
x. Current and non-current classifications
The Group presents assets and liabilities in the statement of financial position based on current/
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;
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.
Asset 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 right by the end of reporting period 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.
Deferred 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
y. 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
y. 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.
(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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
y. 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, historical collection experience, and adjusted forward-looking
information. Such allowances are adjusted periodically to reflect the actual and
anticipated experience.
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 communication 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
y. 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 236:
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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS
September 30, 2024 December 31, 2023
Balance Balance
Currency Rupiah Currency Rupiah
Currency (in million) equivalent (in million) equivalent
Cash on hand 40 - 14
Cash in banks
Related parties
PT Bank Mandiri (Persero) Tbk. (“Bank Mandiri”) Rp - 4,344 - 3,346
US$ 45 685 37 572
EUR 2 38 2 38
JPY 6 1 6 1
HKD 2 3 1 3
AU$ 0 0 0 0
PT Bank Rakyat Indonesia (Persero) Tbk. (“BRI”) Rp - 1,606 - 1,471
US$ 136 2,060 0 6
TWD 4 2 1 0
PT Bank Negara Indonesia (Persero) Tbk. (“BNI”) Rp - 3,157 - 4,228
US$ 5 73 4 64
SGD 0 0 0 0
EUR 0 0 0 0
GBP 0 1 - -
PT Bank Tabungan Negara (Persero) Tbk. ("BTN") Rp - 2,389 - 2,597
Others (each below Rp100 billion) Rp - 53 - 59
US$ 0 0 0 0
Sub-total 14,412 12,385
Third parties
PT Bank CIMB Niaga Tbk. (”Bank CIMB Niaga”) Rp - 287 - 265
US$ 9 136 0 2
The Hongkong and Shanghai Banking Corporation Ltd.
("HSBC Hongkong") US$ 26 396 43 661
HKD 4 8 5 9
Standard Chartered Bank (“SCB”) US$ 9 132 14 215
SGD 7 88 6 74
DBS Bank (Hong Kong) Ltd. ("DBS Hong Kong") US$ 10 151 9 138
HKD 0 1 0 0
PT Bank Central Asia Tbk. (“BCA”) Rp - 111 - 144
US$ 0 3 0 3
Others (each below Rp100 billion) Rp - 277 365
US$ 11 161 10 278
TWD 37 19 50 21
MYR 1 4 5 15
AU$ 0 4 0 5
MMK 176 1 353 3
SGD 2 24 3 36
EUR - 2 0 0
HKD - - 0 0
Sub-total 1,805 2,234
Total of cash in banks 16,217 14,619
Time deposits
Related parties
BRI Rp - 1,285 - 1,550
US$ 28 422 22 340
BTN Rp - 1,280 - 1,065
BNI Rp - 351 - 1,266
US$ 29 446 23 353
PT Bank Syariah Indonesia Tbk. (“BSI”) Rp - 613 0 1,160
Bank Mandiri Rp - 15 - 513
US$ 23 355 25 392
Sub-total 4,767 6,639
43
Page 47
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS (continued)
September 30, 2024 December 31, 2023
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 - 736 - 1,433
US$ 24 359 20 312
Bank Pembangunan Daerah ("BPD") Rp - 883 - 1,569
PT Bank Maybank Indonesia Tbk. ("Maybank") Rp - 163 - 658
US$ 31 466 23 358
PT Bank Danamon Indonesia Tbk. (“Bank Danamon”) Rp - 105 - 491
US$ 10 149 9 137
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk.
("BJB") Rp - 227 - 1,419
PT Bank China Construction Bank Indonesia Tbk.
("CCB Indonesia") US$ 10 150 5 71
Bank CIMB Niaga Rp - 130 - 928
US$ - - 5 70
Lain-lain (masing-masing di bawah Rp100 miliar) Rp - 131 - 197
US$ 1 11 5 85
MYR 2 7 2 8
Sub-total 3,517 7,736
Total of time deposits 8,284 14,375
Allowance for expected credit losses (1) (1)
Total 24,540 29,007
Interest rates per annum on time deposits are as follows:
September 30, 2024 December 31, 2023
Rupiah 2.22% - 7.25% 1.95% - 7.25%
Foreign currencies 2.25% - 6.25% 2.50% - 5.50%
The Group placed the majority of its cash and cash equivalents in state-owned banks (related party)
because they have the most extensive branch networks in Indonesia and are considered to be
financially sound banks.
44
Page 48
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
4. OTHER CURRENT FINANCIAL ASSETS
September 30, 2024 December 31, 2023
Balance Balance
Foreign Foreign
currency Rupiah currency Rupiah
Currency (in millions) equivalent (in millions) equivalent
Time deposits
Related parties
BRI Rp - 292 - 255
Bank Mandiri Rp - 45 - 95
US$ 5 76 5 77
BNI Rp - 40 - 160
Others (each below Rp100 billion) Rp - 98 - 128
Third parties
United Overseas Bank Limited Singapore
(“UOB Singapore”) US$ 120 1,814 12 186
SGD 3 34 - -
Standard Chartered Bank Singapore Limited
(“SCB Singapore”) US$ 7 106 7 100
Others (each below Rp100 billion) Rp - - - 85
US$ 2 32 2 32
Total time deposits 2,537 1,118
Escrow accounts Rp - 110 - 214
US$ 2 26 2 24
Total escrow accounts 136 238
Mutual funds
Related parties
Others (each below Rp100 billion) Rp - 88 - 85
Third parties
PT Henan Putihrai Asset Management
(“HPAM”) Rp - - - 217
Total mutual funds 88 302
Others (each below Rp100 billion) Rp - 10 - 3
MYR 0 0 0 0
Total others 10 3
Allowance for expected credit losses (0) (0)
Total 2,771 1,661
The time deposits have maturities of more than three months but not more than one year, with interest
rates as follows:
September 30, 2024 December 31, 2023
Rupiah 2.75% – 6.50% 2.75% - 6.75%
Foreign currencies 2.30% - 5.48% 2.30% - 5.85%
45
Page 49
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES
Trade receivables arise from services provided to both retail and non-retail customers, with details as
follows:
a. By debtor
(i) Related parties
September 30, 2024 December 31, 2023
State-owned enterprises 1,976 1,914
PT Indonusa Telemedia ("Indonusa") 386 386
Indosat 568 303
Others (each below Rp100 billion) 467 443
Total 3,397 3,046
Allowance for expected credit losses (1,202) (1,128)
Net 2,195 1,918
(ii) Third parties
September 30, 2024 December 31, 2023
Individual and business subscribers 14,638 13,586
Overseas international carriers 2,629 1,541
Total 17,267 15,127
Allowance for expected credit losses (6,892) (6,378)
Net 10,375 8,749
b. By age
September 30, 2024 December 31, 2023
Allowance for Expected Allowance for Expected
expected credit expected credit
Gross credit losses loss rate Gross credit losses loss rate
Not past due 6,480 508 7.8% 7,020 386 5.5%
Past due up to 3 months 3,146 439 14.0% 2,758 369 13.4%
Past due more than 3 to 6 months 2,090 375 17.9% 1,215 313 25.8%
Past due more than 6 months 8,948 6,772 75.7% 7,180 6,438 89.7%
Total 20,664 8,094 18,173 7,506
The Group has made allowance for expected credit losses based on the collective assessment of
historical impairment rates and individual assessment of its customers’ credit history, adjusted for
forward-looking factors specific from the customers and the economic environment. The Group
does not apply a distinction between related party and third party receivables in assessing amounts
past due. As of September 30, 2024 and December 31, 2023, the carrying amounts of trade
receivables of the Group considered past due but not impaired amounted to Rp6,598 billion and
Rp4,033 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
September 30, 2024 December 31, 2023
Rupiah 17,504 15,646
U.S. Dollar 3,051 2,360
Singapore Dollar 68 143
Others (each below Rp100 billion) 41 24
Total 20,664 18,173
Allowance for expected credit losses (8,094) (7,506)
Net 12,570 10,667
46
Page 50
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES (continued)
d. Movements in the allowance for expected credit losses
September 30, 2024 December 31, 2023
Beginning balance 7,506 7,568
Allowance for expected credit losses 989 513
Receivables written-off (401) (575)
Ending balance 8,094 7,506
The receivables written-off relate to both related parties and third parties trade receivables.
Management believes that the allowance for expected credit losses of trade receivables is adequate
to cover losses on uncollectible trade receivables.
As of September 30, 2024 and December 31, 2023, certain trade receivables of the subsidiaries
amounting to Rp1,248 billion, respectively, have been pledged as collateral under lending
agreements (Notes 18a and 19c).
6. CONTRACT ASSETS
The breakdown of contract assets are as follows:
September 30, 2024 December 31, 2023
Contract assets 2,880 2,877
Allowance for expected credit losses (132) (147)
Net 2,748 2,730
Current portion (2,727) (2,704)
Non-current portion 21 26
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
Inventories, all recognized at net realizable value, consist of:
September 30, 2024 December 31, 2023
SIM cards and prepaid vouchers 701 791
Components 68 29
Others (each below Rp100 billion) 186 231
Total 955 1,051
Provision for obsolescence (52) (54)
Net 903 997
Management believes the provision is adequate to cover losses from the decline in inventory value
due to obsolescence.
The inventories recognized as expenses included in operations, maintenance, and telecommunication
service expenses in September 30, 2024 and 2023 amounted to Rp464 billion and Rp553 billion,
respectively (Note 25).
There were no inventories pledged as collateral under lending agreements as of September 30, 2024
and December 31, 2023.
47
Page 51
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
7. INVENTORIES (continued)
As of September 30, 2024 and December 31, 2023, modules (part of property and equipment) and
components held by the Group with book value amounting to RpNil and Rp96 billion, respectively,
have been insured against fire, theft, and other specific risks. The total sum insured as of September
30, 2024 and December 31, 2023 amounted to RpNil and Rp94 billion, respectively.
Management believes the insurance coverage is adequate to cover potential losses of inventories
arising from the insured risks.
8. OTHER CURRENT ASSETS
The breakdown of other current assets are as follows:
September 30, 2024 December 31, 2023
Prepaid frequency license fees - current
portion (Note 35c.i) 2,741 6,173
Advances 922 839
Prepaid salaries 418 276
Other receivables 414 266
Others (each below Rp100 billion) 468 442
Total 4,963 7,996
9. CONTRACT COST
Movements of contract costs are as follows:
September 30, 2024
Cost to obtain Cost to fulfill Total
At January 1, 2024 1,641 580 2,221
Amortization during the period (335) - (335)
Expense during the period - (557) (557)
Addition current period 375 1,121 1,496
At September 30, 2024 1,681 1,144 2,825
Current (407) (849) (1,256)
Non-current 1,274 295 1,569
December 31, 2023
Cost to obtain Cost to fulfill Total
At January 1, 2023 1,554 858 2,412
Amortization during the year (374) - (374)
Expense during the year - (704) (704)
Impairment - (184) (184)
Addition current year 461 610 1,071
At December 31, 2023 1,641 580 2,221
Current (427) (226) (653)
Non-current 1,214 354 1,568
48
Page 52
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
10. LONG-TERM INVESTMENTS
The breakdown of long-term investments are as follows:
September 30, 2024 December 31, 2023
Financial instruments
At fair value through profit or loss:
Equity 7,136 7,537
Convertible bonds 406 491
At fair value through other comprehensive income:
Equity 25 25
7,567 8,053
Associates
PT Jalin Pembayaran Nusantara ("Jalin") 108 105
Others (each below Rp100 billion) 1 4
109 109
Total long-term investments 7,676 8,162
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) Telkomsel's investment in PT GoTo Gojek Tokopedia Tbk. (“GOTO”). As of September 30, 2024,
Telkomsel assessed the fair value of the investment in GOTO was Rp66 per share. The total
unrealized loss from changes in fair value of Telkomsel’s investment in GOTO as of September
30, 2024, amounted to Rp474 billion and was presented as unrealized loss arising from change
of valuation of investments in the consolidated statements of profit or loss.
(ii) Investments by MDI in several start-up entities engaged in the information and technology sector.
Additional investment by MDI in the current period amounted to Rp5 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.
The unrecognized share in losses in other investment cumulatively as of September 30, 2024 and
2023 was amounting to Rp315 billion and Rp349 billion, 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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT
The details of property and equipment are as follows:
December 31, Reclassifications September 30,
2023 Additions Deductions / Translations 2024
At cost:
Directly acquired assets
Land rights 1,955 2 - 11 1,968
Buildings 19,596 167 (25) 486 20,224
Leasehold improvements 1,675 26 (92) 127 1,736
Switching equipment 19,636 101 (736) 377 19,378
Telegraph, telex, and data communication
equipment 1,583 - - - 1,583
Transmission installation and equipment 180,664 803 (8,730) 8,151 180,888
Satellite, earth station, and equipment 10,941 159 (76) 2,959 13,983
Cable network 76,769 2,697 (13) (354) 79,099
Power supply 24,348 395 (625) 1,546 25,664
Data processing equipment 21,893 186 (626) 835 22,288
Other telecommunication peripherals 11,087 168 (4) 691 11,942
Office equipment 2,696 56 (58) (22) 2,672
Vehicles 593 1 (28) - 566
Other equipment 53 2 - 6 61
Property under construction 6,240 12,720 - (15,257) 3,703
Total 379,729 17,483 (11,013) (444) 385,755
Accumulated depreciation:
Directly acquired assets
Buildings 6,818 485 (24) (280) 6,999
Leasehold improvements 1,312 93 (85) (7) 1,313
Switching equipment 14,121 1,341 (736) (3) 14,723
Telegraph, telex, and data communication
equipment 1,582 - - - 1,582
Transmission installation and equipment 104,347 8,770 (8,671) (14) 104,432
Satellite, earth station, and equipment 6,726 510 (76) 52 7,212
Cable network 20,393 2,527 (12) 30 22,938
Power supply 17,387 1,485 (615) 344 18,601
Data processing equipment 16,149 1,457 (593) (151) 16,862
Other telecommunication peripherals 7,700 1,164 (1) - 8,863
Office equipment 2,136 203 (52) (21) 2,266
Vehicles 256 28 (18) - 266
Other equipment 47 3 - - 50
Total 198,974 18,066 (10,883) (50) 206,107
Net book value 180,755 179,648
50
Page 54
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT (continued)
The details of property and equipment are as follows (continued):
December 31, Reclassifications/ December 31,
2022 Additions Deductions Translations 2023
At cost:
Directly acquired assets
Land rights 1,838 110 - 7 1,955
Buildings 18,947 569 (34) 114 19,596
Leasehold improvements 1,571 28 (14) 90 1,675
Switching equipment 20,083 582 (309) (720) 19,636
Telegraph, telex, and data communication
equipment 1,583 - - - 1,583
Transmission installation and equipment 171,106 5,839 (3,562) 7,281 180,664
Satellite, earth station, and equipment 10,804 137 - - 10,941
Cable network 74,695 5,762 (6) (3,682) 76,769
Power supply 23,276 722 (768) 1,118 24,348
Data processing equipment 20,954 557 (218) 600 21,893
Other telecommunication peripherals 10,402 468 - 217 11,087
Office equipment 2,625 96 (18) (7) 2,696
Vehicles 605 48 (56) (4) 593
Other equipment 51 1 - 1 53
Property under construction 4,598 18,049 - (16,407) 6,240
Total 363,138 32,968 (4,985) (11,392) 379,729
Accumulated depreciation:
Directly acquired assets
Buildings 6,228 649 (11) (48) 6,818
Leasehold improvements 1,207 141 (6) (30) 1,312
Switching equipment 14,100 1,967 (309) (1,637) 14,121
Telegraph, telex, and data communication
equipment 1,582 - - - 1,582
Transmission installation and equipment 97,335 12,171 (3,372) (1,787) 104,347
Satellite, earth station, and equipment 6,041 746 - (61) 6,726
Cable network 22,510 3,215 (6) (5,326) 20,393
Power supply 16,890 1,861 (758) (606) 17,387
Data processing equipment 15,490 2,093 (217) (1,217) 16,149
Other telecommunication peripherals 6,067 1,659 - (26) 7,700
Office equipment 2,073 285 (18) (204) 2,136
Vehicles 242 48 (31) (3) 256
Other equipment 44 3 - - 47
Total 189,809 24,838 (4,728) (10,945) 198,974
Net book value 173,329 180,755
The property and equipment group consists of (1) switching equipment; (2) telegraph, telex, and data
communication equipment; (3) transmission installation and equipment; (4) satellite, earth station, and
equipment; (5) cable network; (6) power supply; (7) data processing equipment; and (8) other
telecommunication peripherals are the main telecommunication infrastructure of the Group.
a. Gain on sale of property and equipment
2024 2023
Proceeds from sale of property and equipment 706 83
Net book value (49) (21)
Gain on disposal or sale of property and equipment 657 62
b. Others
(i) During 2023, 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, 2023.
(ii) Interest capitalized to property under construction amounted to Rp75 billion and Rp95 billion
for the nine months period ended September 30, 2024 and 2023, respectively. The
capitalization rate used to determine the amount of borrowing costs eligible for capitalization
ranged from 2.50% to 8.08% for the nine months period ended September 30, 2024 and 2023,
respectively.
51
Page 55
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT (continued)
b. Others (continued)
(iii) No foreign exchange loss was capitalized as part of property under construction for the
nine months period ended September 30 2024 and for the year ended December 31,
2023.
(iv) During the nine months period ended September 30, 2024 and 2023, the Group obtained
proceeds from the insurance claim on lost and damaged property and equipment, with a total
value of Rp111 billion and Rp160 billion, respectively, and were recorded as part of “Other
income - net” in the consolidated statements of profit or loss and other comprehensive income.
During the nine months period ended September 30, 2024 and 2023, the net carrying values
of these assets amounted to Rp97 billion and Rp148 billion, respectively, were charged to the
consolidated statements of profit or loss and other comprehensive income.
(v) 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 2024
and 2071. Management believes that there will be no issue in obtaining the extension of the
land rights when they expire.
(vi) As of September 30, 2024 and December 31, 2023, the Group’s property and equipment
excluding land rights, with a net carrying amount of Rp174,673 billion and Rp175,519 billion,
respectively, were insured againts fire, theft, earthquake and other specified risks, including
business interruption. The total blanket policies as of September 30, 2024 and
December 31, 2023, amounted to Rp42,810 billion and Rp41,045 billion, HKD10 million,
SGDNil and SGD373 million, respectively, and first loss basis amounted to Rp2,750 billion,
respectively. Management believes that the insurance coverage is adequate to cover potential
losses from the insured risks.
(vii) As of September 30, 2024 and December 31, 2023, the percentage of completion of property
under construction was approximately 73.90% and 74.09%, respectively, of the total contract
value or Rp3,988 billion and Rp5,836 billion are recorded as amount of expenditures in
property under construction, respectively, with estimated dates of completion until September
2026 and December 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.
(viii) As of September 30, 2024 and December 31, 2023, 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 Rp3,076 billion, respectively,
have been pledged as collateral under lending agreements (Notes 18a and 19c).
(ix) As of September 30, 2024 and December 31, 2023, the cost of fully depreciated property and
equipment of the Group that are still used in operations amounted to Rp85,946 billion and
Rp85,564 billion, respectively. The Group is currently conducting modernization of network
assets to replace the fully depreciated property and equipment.
(x) In 2023, the total fair values of land rights and buildings of the Group amounted to Rp51,373
billion.
52
Page 56
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
12. LEASES
a. The Group as a lessee
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 carrying amounts of right-of-use assets recognized and the movement during the period are
as follows:
Transmission
installation and
Land rights Buildings equipment Vehicles Others Total
As at January 1, 2023 4,087 663 14,859 523 204 20,336
Additions 1,654 156 7,460 227 893 10,390
Deductions and reclassifications (52) (88) (2,851) 8 1 (2,982)
Depreciation expense (998) (149) (3,600) (236) (177) (5,160)
As at December 31, 2023 4,691 582 15,868 522 921 22,584
Additions 1,299 186 6,258 201 42 7,986
Deductions and reclassifications (76) (25) (265) (4) 4 (366)
Depreciation expense (811) (145) (2,779) (206) (169) (4,110)
As at September 30, 2024 5,103 598 19,082 513 798 26,094
The carrying amounts of the lease liabilities and the movements during the period are as follows:
September 30, 2024 December 31, 2023
As at January 1 20,425 18,661
Accretion of interest 958 976
Additions (Note 39a) 7,986 10,390
Deductions (5,730) (9,602)
Balance 23,639 20,425
Current (6,948) (5,575)
Non-current 16,691 14,850
The maturity analysis of lease payments are as follows:
September 30, 2024 December 31, 2023
No later than a year 8,340 6,614
Later than 1 year and no later than 5 years 11,552 11,453
Later than 5 years 9,591 6,431
Total lease payments 29,483 24,498
Interest (5,844) (4,073)
Net present value of lease payments 23,639 20,425
Current (6,948) (5,575)
Non-current 16,691 14,850
53
Page 57
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
12. LEASES (continued)
a. The Group as a lessee (continued)
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.
The following are the amounts recognized in profit or loss:
2024 2023
Depreciation expense of right-of-use assets 4,110 3,755
Expense relating to short-term leases 2,600 2,202
Interest expense on lease liabilities 958 703
Expense relating to leases of low-value assets 4 32
b. The Group as a lessor
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 32 years and with expiry dates between 2025 and 2052. Periods may be
extended based on the agreement by both parties.
The minimum amount of future lease payments and receipts for operating lease agreements are
as follows:
September 30, 2024 December 31, 2023
No later than 1 year 4,650 5,099
Later than 1 year and no later than 5 years 8,340 9,412
Later than 5 years 3,884 5,098
Total 16,874 19,609
13. OTHER NON-CURRENT ASSETS
The breakdown of other non-current assets is as follows:
September 30, 2024 December 31, 2023
Claims for tax refund - net of current prtion (Note 27b) 1,812 1,606
Prepaid frequency license fees -
net of current portion (Note 35c.i) 1,692 1,987
Prepaid expenses 998 984
Advances 237 368
Security deposits 177 159
Others (each below Rp100 billion) 304 329
Total 5,220 5,433
54
Page 58
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
14. INTANGIBLE ASSETS
The details of intangible assets are as follows:
Other intangible
Goodwill Software License assets Total
Gross carrying amount:
Balance, January 1, 2024 1,492 21,642 550 1,694 25,378
Additions - 2,338 47 4 2,389
Deductions (18) (3,922) - - (3,940)
Reclassifications/translations - (51) (1) - (52)
Balance, September 30, 2024 1,474 20,007 596 1,698 23,775
Accumulated amortization:
Balance, January 1, 2024 (413) (15,034) (200) (1,000) (16,647)
Amortization - (1,841) (56) (55) (1,952)
Deductions 11 3,905 - - 3,916
Reclassifications/translations - 2 - - 2
Balance, September 30, 2024 (402) (12,968) (256) (1,055) (14,681)
Net book value 1,072 7,039 340 643 9,094
Other intangible
Goodwill Software License assets Total
Gross carrying amount:
Balance, January 1, 2023 1,492 19,779 620 1,491 23,382
Additions - 2,763 69 206 3,038
Deductions - (890) (130) - (1,020)
Reclassifications/translations - (10) (9) (3) (22)
Balance, December 31, 2023 1,492 21,642 550 1,694 25,378
Accumulated amortization and
impairment losses:
Balance, January 1, 2023 (402) (13,616) (152) (910) (15,080)
Amortization - (2,321) (58) (94) (2,473)
Impairment (11) - - - (11)
Deductions - 890 2 - 892
Reclassifications/translations - 13 8 4 25
Balance, December 31, 2023 (413) (15,034) (200) (1,000) (16,647)
Net book value 1,079 6,608 350 694 8,731
(i) Goodwill resulted from the acquisition by Mitratel, Metranet, Metra, Sigma, TDE, and Telkomsat
amounted to Rp467 billion, Rp220 billion, Rp149 billion, Rp91 billion, Rp77 billion, and
Rp68 billion, respectively. Deduction of goodwill resulted from divestment of BDI (Note 1e.vi).
(ii) The remaining amortization periods of software for the periods ended September 30, 2024 and
December 31, 2023 ranges from 1-5 years, respectively. The amortization expense is presented
as part of “Depreciation and amortization expenses” in the consolidated statements of profit or
loss and other comprehensive income.
(iii) As of September 30, 2024 and December 31, 2023, the cost of fully amortized intangible assets
that are still utilized in operations amounted to Rp7,782 billion and Rp10,604 billion, respectively.
55
Page 59
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
15. TRADE PAYABLES
The breakdown of trade payables is as follows:
September 30, 2024 December 31, 2023
Related parties
Purchases of equipment, materials, and services 307 424
Payables to other telecommunication providers 166 161
Sub-total 473 585
Third parties
Purchases of equipment, materials, and services 8,408 12,748
Payables to other telecommunication providers 3,635 2,876
Radio frequency usage charges, concession fees,
and Universal Service Obligation (“USO”) charges 1,865 2,399
Sub-total 13,908 18,023
Total 14,381 18,608
Trade payables by currency are as follows:
September 30, 2024 December 31, 2023
Rupiah 11,116 15,929
US Dollar 3,143 2,537
Others 122 142
Total 14,381 18,608
Terms and conditions of the above trade payables:
a. The Group’s trade payables are non-interest bearing and normally settled within 1 year term.
b. Refer to Note 32c for details on related party transactions.
c. Refer to Note 37b.v for the Group’s liquidity risk management.
GSD, Telkom Akses, and Mitratel entered into supply chain financing with several banks. Those
facilities can be used by suppliers of GSD, Telkom Akses and Mitratel to obtain payment of invoices
that have been approved to be paid by the bank in accordance with certain terms and conditions. As
of September 30, 2024, outstanding supply chain facilities used by the suppliers are as follows:
September 30, 2024 December 31 2023
GSD 135 61
Telkom Akses 102 115
Mitratel 100 79
Total 337 255
16. ACCRUED EXPENSES
The breakdown of accrued expenses is as follows:
September 30, 2024 December 31, 2023
Operation, maintenance,
and telecommunication services 6,604 5,813
Salaries and benefits 3,081 3,909
General, administrative, and marketing expenses 3,069 3,114
Interest and bank charges 296 243
Total -
13,050 13,079
Refer to Note 32 for details of related party transactions.
56
Page 60
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
17. CONTRACT LIABILITIES
a. Current
September 30, 2024 December 31, 2023
Advances from customers for Mobile 3,099 3,267
Advances from customers for Enterprise 1,770 1,587
Advances from customers for WIB 1,038 1,291
Advances from customers for Consumer 245 244
Advances from customers for others 518 459
Total 6,670 6,848
b. Non-current
September 30, 2024 December 31, 2023
Advances from customers for WIB 941 795
Advances from customers for Consumer 623 705
Advances from customers for Enterprise 237 251
Advances from customers for others 768 840
Total 2,569 2,591
Refer to Note 32 for details of related party transactions.
18. SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM LOANS AND
OTHER BORROWINGS
a. Short-term bank loans
Outstanding
Lenders September 30, 2024 December 31, 2023
Related parties
Bank Mandiri 3,204 4,013
BNI 1,662 903
Others (each below Rp100 billion) 6 -
Sub-total 4,872 4,916
Third parties
PT Bank HSBC Indonesia ("HSBC") 2,410 2,547
MUFG Bank ("MUFG") 1,555 1,155
Bank of China 1,000 -
PT Bank DBS Indonesia ("DBS") 439 440
PT Bank UOB Indonesia ("UOB") 150 500
PT Bank Maspion Indonesia ("Bank Maspion") 138 -
Others (each below Rp100 billion) 91 92
Sub-total 5,783 4,734
Total 10,655 9,650
57
Page 61
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
18. SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM LOANS AND
OTHER BORROWINGS (continued)
a. Short-term bank loans (continued)
Other significant information relating to short-term bank loans as of September 30, 2024 is as
follows:
Total
facility
(in Interest rate per
Borrower Currency billions)* Maturity date Interest rate annum Security**
Mandiri
2020 Finnet Rp 500 April 28, 2025 Monthly 1 month None
JIBOR + 1.30%
2021 - 2022 The Company, Rp 6,550 June 21, 2025 - Monthly, 5.50% - 9.00% Trade
Nutech, September 21, 2025 Quarterly receivables
Mitratel and property
and
equipment
BNI
2014 - 2022 The Company, Rp 2,350 November 7, 2024 - Monthly, 4.80% - 8.50% Trade
GSD, Sigma September 26, 2025 Quarterly receivables
and property
and
equipment
2017 - 2021 Telkom Infra, Rp 1,135 February 18, 2025 - Monthly 1 month JIBOR + Trade
Infomedia, June 6, 2025 1.75% - 2.50% receivables
Metranet
HSBC
2014 Sigmaa Rp 400 November 6, 2024 Monthly Under BLR 7.40% Trade
receivables
2018 - 2023 Sigma, Metra, Rp 2,613 October 4, 2024 - Monthly, 1 month JIBOR + None
PINS, August 31, 2025 Quarterly 0.35% - 0.80%
Metranet, 3 months
Telkomsat, JIBOR + 2.00%
GSD, TDE
MUFG Bank
2018 - 2019 Infomedia, Rp 1,616 October 31, 2024 Monthly, 1 month JIBOR + None
Metra, GSD, Quarterly 0.70% - 0.80%
Telkom Infra, 3 months
Telkomsat JIBOR + 0.25%
Bank of China
2020 The Company Rp 1,500 October 20, 2024 Quarterly 5.25% None
DBS
2018 Telkom Infra, Rp 475 October 30, 2024 - Monthly 1 month None
Infomedia July 31, 2025 JIBOR + 1.20%
UOB Indonesia
2016 Finnet Rp 500 July 31, 2025 Monthly 1 month None
JIBOR + 1.75%
Bank Maspion
2023 Metranet Rp 170 October 26, 2024 Monthly 7.25% None
* In original currency
** Refer to Note 5 and Note 11 for details of trade receivables and property and equipment pledged as collateral.
a
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 must maintain certain financial ratios. As of December 31, 2023, the Group obtained waiver
from lenders for the non-fulfillment financial ratios in Sigma. The waivers from BNI, Bank DBS, and
HSBC were received on December 11, 2023, December 18, 2023, and December 22, 2023. As of
September 30, 2024, the Group has complied with all covenants regarding these financial ratios.
The credit facilities were obtained by the Group for working capital purposes.
58
Page 62
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
18. SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM LOANS AND
OTHER BORROWINGS (continued)
b. Current maturities of long-term loans and other borrowings
Notes September 30, 2024 December 31, 2023
Two-step loans 19a 41 84
Bonds and medium-term notes ("MTN") 19b 2,895 548
Bank loans 19c 13,687 9,282
Other borrowings 19d - 362
Total 16,623 10,276
19. LONG-TERM LOANS AND OTHER BORROWINGS
Notes September 30, 2024 December 31, 2023
Bonds and MTN 19b 2,696 4,795
Bank loans 19c 19,526 22,978
Total 22,222 27,773
Scheduled principal payments as of September 30, 2024 are as follows:
Year
Notes Total 2025 2026 2027 2028 Thereafter
Bonds and MTN 19b 2,696 - - - - 2,696
Bank loans 19c 19,526 1,590 5,910 4,089 3,330 4,607
Total 22,222 1,590 5,910 4,089 3,330 7,303
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 after July 1994 are payable in their original
currencies and any resulting foreign exchange gain or loss is borne by the Company.
September 30, 2024 December 31, 2023
Outstanding Outstanding
Foreign currency Rupiah Foreign currency Rupiah
Lenders Currency (in millions) equivalent (in millions) equivalent
Overseas banks Yen 384 41 768 84
Total 41 84
Current maturities (Note 18b) (41) (84)
Long-term portion - -
Principal payment Interest rate per
Lenders Currency schedule Interest payment period annum
Overseas banks Yen Semi-annually Semi-annually 2.95%
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.
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.
59
Page 63
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
a. Two-step loans (continued)
Under the loan covenants, the Company is required to maintain financial ratios as follows:
i. Projected net revenue to projected debt service ratio should exceed 1.2:1 for the two-step
loans originating from Asian Development Bank (“ADB”);
ii. Internal financing (earnings before depreciation and finance costs) should exceed 20%
compared to annual average capital expenditures for loans originating from the ADB.
As of September 30, 2024, the Company has complied with the above-mentioned ratios.
b. Bonds and MTN
Outstanding
Bonds and MTN September 30, 2024 December 31, 2023
Bonds
Bonds Telkom 2015
Series B 2,100 2,100
Series C 1,200 1,200
Series D 1,500 1,500
Bonds Mitratel 2024 240 -
Sukuk Mitratel 2024 10 -
MTN
MTN Mitratel 2023 550 550
Total 5,600 5,350
Unamortized debt issuance cost (9) (7)
Long-term portion 5,591 5,343
Current maturities (Note 18b) (2,895) (548)
Long-term portion 2,696 4,795
i. Bonds
(a) Bonds Telkom 2015
Listed Issuance Interest Interest rate
Bonds Principal Issuer on date Maturity date payment period per annum
Series A 2,200 The Company IDX June 23, 2015 June 23, 2022 Quarterly 9.93%
Series B 2,100 The Company IDX June 23, 2015 June 23, 2025 Quarterly 10.25%
Series C 1,200 The Company IDX June 23, 2015 June 23, 2030 Quarterly 10.60%
Series D 1,500 The Company IDX June 23, 2015 June 23, 2045 Quarterly 11.00%
Total 7,000
The bonds are not secured by specific security but by all of the Company’s assets,
movable or non-movable, either existing or in the future (Note 11b.xi). The underwriters
of the bonds are PT. Bahana TCW Management Investment (“Bahana TCW”), PT BRI
Danareksa Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk.
and the trustee is Bank Permata. The Company received the proceeds from the issuance
of bonds on June 23, 2015.
The funds received from the public offering of bonds net of issuance costs, were used to
finance capital expenditures which consisted of wave broadband, backbone, metro
network, regional metro junction, information technology application and support, and
acquisition of some domestic and international entities.
As of September 30, 2024, the rating of the bonds issued by Pefindo is idAAA (Triple A).
60
Page 64
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
b. Bonds and MTN (continued)
i. Bonds (continued)
(a) Bonds Telkom 2015 (continued)
Based on the Indenture Trusts Agreement, the Company is required to comply with all
covenants or restrictions, including maintaining financial ratios as follows:
(i) Debt to equity ratio should not exceed 2:1;
(ii) EBITDA to interest ratio should not be less than 4:1;
(iii) Debt service coverage is at least 125%.
As of September 30, 2024, the Company has complied with the above-mentioned ratios.
(b) Bonds Mitratel 2024
On July 4, 2024, Mitratel issued shelf register bonds phase I amounting Rp240 billion.
Bonds has annual interest rate 6.50% that will be paid quarterly. Bonds will mature on
July 14, 2025.
PT Bank Tabungan Negara (Persero) Tbk. was appointed as trustee for the issuance of
the Bonds. The rating of the Bonds issued by Pemeringkat Efek Indonesia is idAAA.
(c) Sukuk Mitratel 2024
On July 4, 2024, Mitratel issued sukuk Ijarah shelf register phase I amounting Rp10
billion. Sukuk has annual interest rate 6.50% that will be paid quarterly. Sukuk will mature
on July 14, 2025.
PT Bank Tabungan Negara (Persero) Tbk. was appointed as trustee for the issuance of
Sukuk. The rating of Sukuk issued by Pemeringkat Efek Indonesia is AAAsy.
ii. MTN
On September 26, 2023, Mitratel issued MTN amounting to Rp550 billion which will be used
to support the provision of funds for credit refinancing.
MTN Mitratel 2023 with annual interest rate 6.20% will mature on October 26, 2024.
Bank Mandiri was appointed as trustee for the issuance of MTN Mitratel 2023. The rating of
the MTN issued by Pefindo is idAAA (Triple A).
61
Page 65
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
c. Bank loans
September 30, 2024 December 31, 2023
Outstanding Outstanding
Foreign Foreign
currency Rupiah currency Rupiah
Lenders Currency (in millions) equivalent (in millions) equivalent
Related parties
BNI Rp - 5,964 - 6,182
Bank Mandiri Rp - 4,572 - 3,453
BSI Rp - 3,292 - 509
BRI Rp - 1,727 - 955
Sub-total 15,555 11,099
Third parties
BCA Rp - 9,135 - 10,170
DBS Rp - 2,800 - 1,500
Bank CIMB Niaga Rp - 1,891 - 2,110
USD 6 93 4 60
Bank of China Rp - 1,400 - 1,400
Bank Permata Rp - 1,125 - 1,313
HSBC Rp - 1,000 - 625
Bank Danamon Rp - 204 - 273
Syndication of banks Rp - - - 2,500
USD 4 56 10 160
PT Bank ANZ Indonesia ("Bank ANZ") Rp - 44 - 110
BJB Rp - - - 500
MUFG Bank Rp - - - 500
Others (each below Rp100 billion) Rp - 5 - 13
MYR 8 28 9 29
Sub-total 17,781 21,263
Total 33,336 32,362
Unamortized debt issuance cost (123) (102)
33,213 32,260
Current maturities (Note 18b) (13,687) (9,282)
Long-term portion 19,526 22,978
62
Page 66
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
c. Bank loans (continued)
Other significant information relating to bank loans as of September 30, 2024, 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 2,004 2021 - 2024 Quarterly 5.75% - 8.50% Trade
Telkomsel receivables
2013 - 2022 The Rp 9,175 1,104 2018 - 2033 Monthly, 1 month Trade
Company, Quarterly JIBOR + 2.25%; receivables
TLT, 3 months and property
Sigma, JIBOR + and
Mitratel 0.50% - 1.70% equipment
Bank Mandiri
2018 - 2023 The Rp 8,975 3,222 2020 - 2029 Quarterly 3 months None
Company, JIBOR +
GSD, 1.00% - 1.50%
PST,
Telkomsel
BSI
2021 - 2024 Telkomsel, Rp 3,292 500 2021 - 2029 Monthly, 5.50% - 7.82% None
Dayamitra Semi-
annually
BRI
2019 - 2023 The Rp 3,000 182 2021 - 2030 Quarterly 3 months None
Company, JIBOR + 0.75%
DMT
BCA
2020 - 2023 The Rp 6,500 540 2024 - 2030 Quarterly 6.50% - 7.00% None
Company,
Mitratel
2020 - 2023 The Rp 9,186 1,336 2020 - 2031 Quarterly 3 months None
Company, JIBOR +
PST, GSD 1.00% - 1.50%
DBS
2021 Mitratel Rp 3,500 700 2023 - 2028 Quarterly 3 months None
JIBOR + 1.20%
2023 Mitratel Rp 2,000 - 2023 - 2020 Quarterly 6.90% None
Bank CIMB
Niaga
2019 - 2022 PINS, Rp 2,300 210 2022 - 2029 Quarterly 3 months None
Mitratel JIBOR +
1.30% - 1.95%
Bank of China
2019 Telkomsel Rp 1,400 1,400 2021 - 2025 Monthly 4.90% None
Bank Permata
2020 - 2022 Mitratel Rp 2,000 187 2021 - 2029 Quarterly 3 months None
JIBOR + 1.30%
HSBC
2021 - 2023 Mitratel Rp 1,250 125 2023 - 2030 Quarterly 3 months None
JIBOR +
1.50% - 1.85%
Bank Danamon
2022 Mitratel Rp 636 91 2022 - 2025 Quarterly 3 months None
JIBOR + 1.50%
Syndication
of banks
2018 Telin USD 0 0 2020 - 2025 Semi- 6 months None
annually SOFR + 1.55%
ANZ
2015 GSD, Rp 440 78 2020 - 2025 Quarterly 3 months None
PINS JIBOR +
1.40% - 2.00%
BJB
2023 Telkomsel Rp 1,000 1,750 2023 - 2025 Monthly 5.85% None
MUFG Bank
2021 Mitratel Rp 500 500 2022 - 2028 Quarterly 3 months None
JIBOR + 1.15%
** In original currency
** Refer to Note 5 and Note 11 for details of trade receivables and property and equipment pledged as collateral.
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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
c. Bank Loans (continued)
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,
2023, the Group obtained waiver from lenders for the non-fulfillment financial ratios in Sigma and
GSD. The waivers from BNI, Bank Mandiri, and BCA were received on December 11, 2023,
December 13, 2023, and December 22, 2023. As of September 30, 2024, the Group has complied
with all covenants regarding these financial ratios.
The credit facilities were obtained by the Group for working capital purposes and investment
purposes.
d. Other borrowings
Outstanding
Lenders September 30, 2024 December 31, 2023
PT Sarana Multi Infrastruktur (Persero)
("Sarana Multi Infrastruktur") - 362
Unamortized debt issuance cost - -
Total - 362
Current maturities (Note 18b) - (362)
Long-term portion - -
As of September 30, 2024, the Company and Telkomsat have paid the outstanding of other
borrowing.
20. NON-CONTROLLING INTERESTS
The details of non-controlling interests are as follows:
September 30, 2024 December 31, 2023
Non-controlling interests in net assets of subsidiaries:
Telkomsel 9,396 11,108
Mitratel 8,665 9,106
Others 588 604
Total 18,649 20,818
2024 2023
Non-controlling interests in profit
in current period of subsidiaries:
Telkomsel 4,870 5,464
Mitratel 432 403
Others 44 23
Total 5,346 5,890
64
Page 68
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
20. NON-CONTROLLING INTERESTS (continued)
Material partly-owned subsidiaries
The non-controlling interest which are considered material to the Company are the non-controlling
interest in Telkomsel and Mitratel. On September 30, 2024 and December 31, 2023, the non-
controlling interest in Telkomsel holds 30.10% and Mitratel holds 28.16%.
The summarized financial informations of Telkomsel and Mitratel are provided below. These
informations are based on amounts before intercompany eliminations and adjustments.
Summarized statements of financial position:
Telkomsel Mitratel
September 30, December 31, September 30, December 31,
2024 2023 2024 2023
Current assets 14,089 20,505 2,832 3,420
Non-current assets 95,722 92,461 54,145 53,590
Current liabilities (41,656) (40,009) (11,132) (11,071)
Non-current liabilities (43,145) (42,308) (12,244) (11,901)
Total equity 25,010 30,649 33,601 34,038
Attributable to:
Owners of the parent company 15,614 19,541 24,936 24,932
Non-controlling interests 9,396 11,108 8,665 9,106
Summarized statements of profit or loss and other comprehensive income:
Telkomsel Mitratel
2024 2023 2024 2023
Revenues 85,209 73,193 6,818 6,273
Operation expenses (62,447) (50,480) (3,764) (3,614)
Other expenses - net (1,786) (1,682) (1,418) (1,118)
Profit before income tax 20,976 21,031 1,636 1,541
Income tax expense - net (4,747) (4,656) (104) (110)
Profit for the period 16,229 16,375 1,532 1,431
Other comprehensive income
- net 150 - - -
Total comprehensive income
for the period 16,379 16,375 1,532 1,431
Attributable to
non-controlling interests 4,870 5,464 432 403
Dividends paid to
non-controlling interests 6,627 9,267 407 484
Summarized statements of profit or loss and other comprehensive income:
Telkomsel Mitratel
2024 2023 2024 2023
Operating 31,783 31,573 5,673 3,350
Investing (11,423) (9,995) (1,605) (3,701)
Financing (24,035) (24,107) (4,181) (3,548)
Net decrease in
cash and cash equivalents (3,675) (2,529) (113) (3,899)
CF
65
Page 69
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
21. CAPITAL STOCK
September 30, 2024
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* 4,538,893,880 4.58 227
Directors (Note 1b):
Ririek Adriansyah 9,336,755 0 0
Bogi Witjaksono 6,952,700 0 0
Afriwandi 6,995,200 0 0
Heri Supriadi 7,242,700 0 0
F.M. Venusiana R. 10,629,200 0 0
Herlan Wijanarko 6,995,200 0 0
Muhamad Fajrin Rasyid 6,952,700 0 0
Budi Setyawan Wijaya 7,407,700 0 0
Honesti Basyir 3,250,844 0 0
Commissioners (Note 1b):
Isa Rachmatarwata 3,312,700 0 0
Marcelino Rumambo Pandin 3,312,700 0 0
Ismail 3,312,700 0 0
Arya Mahendra Sinulingga 3,359,500 0 0
Rizal Mallarangeng 3,312,700 0 0
Silmy Karim 1,344,700
Public (individually less than 5%) 42,837,251,161 43.33 2,146
Total 99,062,216,600 100.00 4,953
December 31, 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* 3,973,451,980 4.02 199
Directors (Note 1b):
Ririek Adriansyah 6,016,355 0 0
Bogi Witjaksono 4,130,400 0 0
Afriwandi 4,172,900 0 0
Heri Supriadi 4,170,400 0 0
F.M. Venusiana R. 7,806,900 0 0
Herlan Wijanarko 4,172,900 0 0
Muhamad Fajrin Rasyid 4,130,400 0 0
Budi Setyawan Wijaya 4,585,400 0 0
Honesti Basyir 370,544 0 0
Commissioners (Note 1b):
Isa Rachmatarwata 1,968,000 0 0
Marcelino Rumambo Pandin 1,968,000 0 0
Ismail 1,968,000 0 0
Arya Mahendra Sinulingga 2,014,800 0 0
Rizal Mallarangeng 1,968,000 0 0
Public (individually less than 5%) 43,436,968,061 43.89 2,174
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 of the Republic
of Indonesia and cannot be transferred to any party, and has a veto right in the General Meeting of
Stockholders of the Company with respect to the election and removal of the Boards of Commissioners
and Directors, issuance of new shares, and amendments of the Company’s Articles of Association.
66
Page 70
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
22. OTHER EQUITY
September 30, 2024 December 31, 2023
Difference from the acquisition of non-controlling
interests in subsidiaries 8,364 8,364
Exchange rate translation adjustment 703 844
Effect of changes in associates’ equity 386 386
Unrealized gain on available-for-sale securities 8 8
Other equity components 37 37
Total 9,498 9,639
23. REVENUES
The Group derives revenues in the following major product lines:
2024 Mobile Consumer Enterprise WIB Others Consolidated revenue
Telephone revenues
Cellular 4,770 - - 137 - 4,907
Fixed lines - - 269 67 - 336
Total telephone revenues 4,770 - 269 204 - 5,243
Interconnection revenues 267 - - 6,608 - 6,875
Data, internet, and information
technology service revenues
Cellular data and internet 54,509 - - - - 54,509
Internet, data communication, and
information technology services - - 8,532 2,060 - 10,592
SMS 2,635 - 14 - - 2,649
Others 117 - 1,321 770 599 2,807
Total data, internet, and information
technology service revenues 57,261 - 9,867 2,830 599 70,557
Network revenues 3 - 999 1,243 - 2,245
IndiHome revenues - 19,626 - - - 19,626
Other services
Call center service - - 951 - - 951
E-payment 12 - 885 - - 897
Manage service and terminal - 1 712 4 - 717
E-health - - 555 - - 555
Others 558 15 906 244 553 2,276
Total other services 570 16 4,009 248 553 5,396
Total revenues from
contract with customer 62,871 19,642 15,144 11,133 1,152 109,942
Revenues from lessor transactions - - - 2,277 - 2,277
Total revenues 62,871 19,642 15,144 13,410 1,152 112,219
Adjustments and eliminations - 2 6 - (419)
Total external revenues as reported in
note operating segment 62,871 19,644 15,150 13,410 733
2023 Mobile Consumer Enterprise WIB Others Consolidated revenue
Telephone revenues
Cellular 7,324 - - 122 - 7,446
Fixed lines - 332 447 87 - 866
Total telephone revenues 7,324 332 447 209 - 8,312
Interconnection revenues 219 - - 6,408 - 6,627
Data, internet, and information
technology service revenues
Cellular data and internet 53,529 - - - - 53,529
Internet, data communication, and
information technology services - 76 5,624 1,651 - 7,351
SMS 2,484 - 19 - - 2,503
Others 47 - 1,499 784 157 2,487
Total data, internet, and information
technology service revenues 56,060 76 7,142 2,435 157 65,870
Network revenues 3 - 847 937 - 1,787
IndiHome revenues - 19,309 2,476 - - 21,785
Other services
Call center service - - 1,002 - - 1,002
Manage service and terminal - - 597 11 - 608
E-health - - 554 - - 554
E-payment - - 445 - - 445
Others 182 24 1,077 241 636 2,160
Total other services 182 24 3,675 252 636 4,769
Total revenues from
contract with customer 63,788 19,741 14,587 10,241 793 109,150
Revenues from lessor transactions - - - 2,088 - 2,088
Total revenues 63,788 19,741 14,587 12,329 793 111,238
Adjustments and eliminations - 7 10 2 (501)
Total external revenues as reported in
note operating segment 63,788 19,748 14,597 12,331 292
67
Page 71
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
23. REVENUES (continued)
Management expects that most of the transaction price allocated to the unsatisfied contracts as of
September 30, 2024 will be recognized as revenue during the next reporting periods. Unsatisfied
performance obligations as of September 30, 2024, which management expect to be realised within
one year is Rp8,977 billion, and more than one year is Rp4,799 billion.
The Group entered into non-cancellable 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 32 years and with expiry dates between 2025 and 2052. Periods may be extended
based on the agreement by both parties.
Refer to Note 32 for details of related parties transactions.
24. PERSONNEL EXPENSES
The breakdown of personnel expenses is as follows:
2024 2023
Salaries and related benefits 7,420 7,188
Vacation pay, incentives, and other benefits 3,004 2,884
Pension and other post-employment
benefits (Note 30) 1,306 1,356
Early retirement program 1,180 0
LSA expense (Note 31) 208 218
Others 38 32
Total 13,156 11,678
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:
2024 2023
Operation and maintenance 17,528 17,152
Radio frequency usage charges (Note 35c.i) 5,753 5,536
Leased lines and Customer Premise Equipment ("CPE") 2,398 2,009
Concession fees and USO charges (Note 15) 2,184 2,068
Electricity, gas, and water 802 619
Cost of SIM cards, vouchers, and
sales of peripherals (Note 7) 464 553
Project management 284 351
Insurance 224 194
Vehicles rental and supporting facilities 206 225
Others (each below Rp100 billion) 134 157
Total 29,977 28,864
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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
26. GENERAL AND ADMINISTRATIVE EXPENSES
The breakdown of general and administrative expenses is as follows:
2024 2023
General expenses 1,926 1,852
Allowance for expected credit losses
trade receivables (Note 5) 989 686
Professional fees 456 531
Training, education, and recruitment 349 288
Traveling 311 329
Meeting 280 222
Social contribution 179 164
Collection expenses 127 121
Others (each below Rp100 billion) 307 327
Total 4,924 4,520
Refer to Note 32 for details of related parties transactions.
27. TAXATION
a. Prepaid taxes
September 30, 2024 December 31, 2023
The Company:
Income Tax
Article 22 - Witholding tax on goods delivery
and imports - 0
Article 23 - Witholding tax on service delivery - 238
Subsidiaries:
Income Tax
Corporate Income Tax 567 -
Article 4(2) - Final tax 19 1
Article 22 - Witholding tax on goods delivery
and imports 3 -
Article 23 - Witholding tax on service delivery 215 4
VAT 1,830 1,669
Total prepaid taxes 2,634 1,912
Current portion (2,634) (1,912)
Non-current portion (Note 13) - -
b. Claims for tax refund
September 30, 2024 December 31, 2023
The Company
Corporate Income Tax 544 271
Article 21 - Individual income tax 2 2
VAT 174 164
Subsidiaries
Income Tax
Corporate income tax 585 699
Article 23 - Witholding tax on services delivery 3 10
VAT 509 476
Total claims for tax refund 1,817 1,622
Current portion (5) (16)
Non-current portion (Note 13) 1,812 1,606
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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
c. Taxes payable
September 30, 2024 December 31, 2023
The Company:
Income taxes
Article 4(2) - Final tax 25 33
Article 21 - Individual income tax 12 102
Article 22 - Withholding tax on goods delivery
and imports 1 2
Article 23 - Withholding tax on services 12 24
Article 25 - Installment of corporate income tax 2 122
Article 26 - Withholding tax on non-resident
income - 0
VAT 330 170
VAT - Tax collector 112 163
494 616
Subsidiaries:
Income taxes
Article 4(2) - Final tax 241 317
Article 21 - Individual income tax 158 182
Article 22 - Withholding tax on goods delivery
and imports 5 9
Article 23 - Withholding tax on services 142 152
Article 25 - Installment of corporate income tax 618 539
Article 26 - Withholding tax on non-resident
income 6 10
Article 29 - Corporate income tax 378 1,672
VAT 238 399
VAT - Tax collector 856 629
2,642 3,909
Total taxes payable 3,136 4,525
d. The components of consolidated income tax expense (benefit) are as follows:
2024 2023
Current
The Company 736 1,122
Subsidiaries 5,158 5,775
5,894 6,897
Deferred
The Company 389 496
Subsidiaries 313 (500)
702 (4)
Net income tax expense 6,596 6,893
70
Page 74
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
d. The components of consolidated income tax expense (benefit) are as follows (continued):
The reconciliation between the profit before income tax and the estimated taxable income of
the Company for the nine months period ended September 30, 2024 and 2023 are as follows:
2024 2023
Profit before income tax consolidation 29,617 32,282
Add back consolidation eliminations 17,904 18,019
Consolidated profit before income tax and eliminations 47,521 50,301
Less: profit before income tax of the subsidiaries (28,644) (29,156)
Profit before income tax attributable to the Company
before deduction of income subject to final tax 18,877 21,145
Less: income subject to final tax - (436)
Profit before income tax attributable to the Company
after deduction of income subject to final tax 18,877 20,709
Temporary differences:
Allowance for expected credit losses (30) (68)
Deferred installation fee 33 5
Leases (1) (7)
Provision for employee benefits (4) (365)
Land rights, intangible assets, and other 51 26
Net periodic pension and other post-employment
benefits costs (174) (1,110)
Difference between book value of accounting
and tax property equipment (1,896) (1,444)
Accrued expenses and provision for inventory
obsolescence (151) 21
Contract cost 3 62
Net temporary differences (2,169) (2,880)
Permanent differences:
Net periodic post-retirement health care benefit costs 272 190
Donations 154 181
Employee benefits 9 19
Equity in net income of associates and subsidiaries (13,348) (12,724)
Others 223 174
Net permanent differences (12,690) (12,160)
Taxable income of the Company 4,018 5,669
Current corporate income tax expense 649 1,077
Final income tax expense 87 45
Total current income tax expense of the Company 736 1,122
Current income tax expense of the subsidiaries 5,158 5,775
Total current income tax expense 5,894 6,897
71
Page 75
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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:
2024 2023
Profit before income tax consolidation 29,617 32,282
Less consolidated income subject to final tax - net (5,709) (4,394)
23,908 27,888
Income tax expense calculated at the Company’s
applicable statutory tax rate 4,543 5,299
Difference in applicable statutory tax rate for
subsidiaries 556 587
Non-deductible expenses 1,116 876
Final income tax expense 88 45
Deferred tax adjusment (16) (104)
Unrecognized deferred tax 8 4
Others 301 186
Net income tax expense 6,596 6,893
In Law No. 7 of 1983 concerning Income Tax as amended several times, most recently by Law No.
6 of 2023 concerning Stipulation of Government Regulations in Lieu of Law No. 2 of 2022
concerning Job Creation becomes Law, 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 fiscal year, and in article 17 paragraph
(2b) stipulates that 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 applied the tax rate of 19% for the nine months period ended September 30, 2024
and the year ended December 31, 2023. The subsidiaries applied the tax rate of 22% for the nine
months period ended September 30, 2024 and the year ended December 31, 2023.
e. Tax assessment
(i) The Company
For the nine month period ending September 30, 2023, the Company received a number of
tax assessments and decisions for several tax years. On March 10 2023, the Company
received SKPKB and STP VAT WAPU for the May 2020 Period amounting to Rp0.6 billion
(including a fine of Rp0.3 billion), SKPN and STP VAT JKP from outside the customs area
amounting to Rp0.1 billion, and domestic SKPLB VAT for May 2020 amounting to Rp0.3 billion.
The Company agreed to all corrections and has charged fines and audit corrections amounting
to Rp0.8 billion in the 2023 consolidation of profit and loss report. On May 25 2023, the
Company received Supreme Court Decision Number 1365/B/PK/Pjk/2023 which rejected the
request for review DGT returned to the 2015 Corporate Income Tax dispute, with this decision
all types of 2015 taxes have permanent legal force. In March, April and June 2023, the
Company received Tax Audit Notification Letters for Corporate Income Tax and Income Tax
Withholding/Collection for 2019 and 2020, VAT for 2020 (other than the May Period) and for
all types of taxes for 2021.
For the nine month period ending September 30, 2024, the Company received a number of
tax assessments regarding to the VAT audit results for period 2020 (other than the May
period).
72
Page 76
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
e. Tax assessments (continued)
(i) The Company (continued)
In January and March 2024, the Company received SKPKB, SKPN and STP VAT WAPU
amounting to Rp4.6 billion (including a fine of Rp0.7 billion), SKPKB, SKPN and STP VAT JKP
from outside the Customs Area amounting to Rp1.2 billion (including a fine of Rp0 .1 billion),
Domestic VAT SKPKB amounting to Rp0.2 billion and Domestic VAT SKPLB amounting to
Rp63.7 billion. The Company agreed to all corrections and has charged fines and audit
corrections amounting to Rp8.8 billion in the 2024 profit and loss report. In February and April
2024, the Company received tax refunds amounting to Rp57.6 billion for that VAT fiscal audit.
In May and August 2024, the Company has also received tax refunds amounting Rp37.9 billion
for the cancellation of the 2015 JKP VAT STP from Outside the Customs Area and the 2016
JKP Export VAT (Interconnection Services).
In July 2024, the Company received a Field Audit Notification for all types of taxes for 2023.
Until the date of publication of this financial report, the tax audit process for Corporate Income
Tax and Income Tax Withholding/Collection for 2019 and 2020, as well as for all types of taxes
for 2021 and 2023 is still in progress.
As of September 30, 2024 and December 31, 2023, there are no tax assessments that are
still in the process of objection, appeal and judicial review.
(ii) Telkomsel
In the nine-month periods ended September 30, 2023, Telkomsel received official verdicts
from Supreme Court, which fully rejected the judicial review claimed by the Tax Authorities for
the Tax Court’s verdicts on appeal for 2014 and 2015 fiscal year VAT. Therefore, these cases
have been legally enforced (in-kracht) and no additional tax payables for 2014 and 2015 fiscal
years VAT. There was neither tax assessment letters nor tax refunds for the nine-month
periods ended September 30, 2023.
In the nine-month periods ended September 30, 2024, Telkomsel received a number of tax
assessments. On July 25 and August 23, 2024, Telkomsel received tax examination
notification letters for 2019 and 2023 fiscal year, respectively. On September 30, 2024,
Telkomsel received tax underpayment letters amounting to Rp6 billion (including penalty of
Rp2 billion) for 2019 fiscal year Prepaid VAT, where Telkomsel acted as the VAT Collector.
Telkomsel accepted the entire tax assessment result and plan to compensate the tax
underpayments of Rp4 billion to prepaid VAT under prevailing tax regulation, and booked an
additional tax expenses for the penalty. As of the authorization date of these consolidated
financial statements, the tax examination for 2023 fiscal year is still in progress.
As of September 30, 2024 and December 31, 2023, Telkomsel had a number of tax
assessments that were in process of appeal is as follows:
September 30, 2024
December 31, 2023
Appeal Others
Claim for tax refund:
Corporate income tax
2018 fiscal year 35 -
2015 fiscal year 294 -
2014 fiscal year 2 -
Witholding tax
2015 fiscal year - 0
VAT
2014 fiscal year - 0
331 0
Tax assesment without a claim for tax refund
Corporate income tax 35 -
73
Page 77
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
e. Tax assessments (continued)
(ii) Telkomsel (continued)
The oustanding claims for tax refund categorized as “Others” amounting to Rp9 million and
Rp114 million related to 2014 VAT and 2015 witholding tax, respectively, pertain to amount
that were compensated with tax penalty by the Tax Authority when the refunds had been made,
which the relevant tax letters has not been received yet by Telkomsel.
Management believes that Telkomsel has a strong case to defend its position. Telkomsel
determines an allowance related to the tax assessments is not necessary.
f. Deferred tax assets and liabilities
The details of the Group's deferred tax assets and liabilities are as follows:
Deferred tax asset and liabilities (Charged) credited to
in financial position profit or loss
September 30, December 31,
2024 2023 2024 2023
The Company
Allowance for expected credit losses 826 831 (5) (13)
Net periodic pension and other
post-employment benefit costs 789 822 (33) (211)
Difference between accounting and tax
bases of property and equipment 93 430 (337) (224)
Provision for employee benefits 298 299 (1) (69)
Deferred installation fee 27 21 6 1
Land rights, intangible assets and others 39 29 10 5
Accrued expenses and provision for
inventory obsolescence 57 86 (29) 4
Leases (1) - (1) (1)
Capitalization of contract cost 15 14 1 12
Total deferred tax assets - net 2,143 2,532 (389) (496)
Telkomsel
Provision for employee benefits 1,477 1,385 134 142
Allowance for expected credit losses 319 205 114 78
Leases 220 554 (334) (3)
Contract liabilities 374 400 (26) 236
Fair value measurement of financial
instruments - - - 6
Difference between accounting and tax bases of
property and equipment (1,278) (1,228) (51) 132
License amortization (174) (171) (3) (8)
Contract cost (28) (46) 18 (1)
Other financial instruments (237) (165) (72) (19)
Deferred tax assets (liabilities) of Telkomsel - net 673 934 (220) 563
Deferred tax assets of the other subsidiaries - net 627 704 (65) (30)
Deferred tax liabilities of the other subsidiaries - net (869) (841) (28) (33)
Deferred tax expense (income) (702) 4
Total deferred tax assets - net 3,443 4,170
Total deferred tax liabilities - net (869) (841)
As of September 30, 2024 and December 31, 2023 the aggregate amounts of temporary
differences associated with investments in subsidiaries and associated companies, for which
deferred tax liabilities are not recognized were Rp78,919 billion and Rp79,794 billion, respectively.
Realization of the deferred tax assets is dependent upon the Group’s capability in generating future
profitable operations. Although realization is not assured, the Group believes that it is probable that
these deferred tax assets will be realized through reduction of future taxable income when
temporary differences reverse. The amount of deferred tax assets is considered realizable;
however, it can be reduced if actual future taxable income is lower than estimates.
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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
g. Administration
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 related 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 Income Tax 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.
In December 2023, the Government issued Government Regulation No. 58 of 2023 concerning
Income Tax Withholding Rates Article 21 on Income in Connection with Work, Services or Activities
of Individual Taxpayers as well as Regulation of the Minister of Finance No. 168 of 2023 concerning
Guidelines for Implementing Tax Deductions on Income in Connection with Work, Services or
Individual Activities which will come into effect from January 1, 2024. With this provision, there is a
change in the mechanism for calculating Income Tax Article 21 for Employees which previously
used progressive rates in accordance with Article 17 of the Law -The Income Tax Law uses the
average effective rate (TER) for Article 21 Income Tax deductions as regulated in the government
regulation. The Company ensures that there is intensive coordination between related units to
implement these regulations.
In June 2024, the Government issued Director General of Taxes Regulation No. 6 of 2024
concerning the Use of National Identity Number as Taxpayer Identification Number, Taxpayer
Identification Number with 16 (Sixteen) Digit Format, and Business Activity Place Identity Number
in Tax Administration Services which will come into effect from July 1, 2024. With this provision,
Taxpayers at their place of residence, domicile, or place of business use the National Identity
Number ("NIK") as the Taxpayer Identification Number ("NPWP"), NPWP with 16 (sixteen) digit
format and Business Activity Place Identity Number ("NITKU") in administrative services organized
by the Directorate General of Taxes and Other Parties; and Other parties that provide administrative
services that include NPWP must use NIK as NPWP and NPWP with 16 (sixteen) digit format.
28. BASIC EARNINGS PER SHARE
Basic earnings per share is computed by dividing profit for the period attributable to owners of the
parent company amounting to Rp17,675 billion and Rp19,499 billion by the weighted average number
of shares outstanding during the period totaling 99,062,216,600 shares for the nine months period
ended September 30, 2024 and 2023, 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 Rp178.42 and Rp196.84 (in full amount) for the nine months
period ended September 30, 2024 and 2023, respectively. The Company does not have potentially
dilutive financial investments for the nine months period ended September 30, 2024 and 2023.
75
Page 79
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
29. CASH DIVIDENDS AND GENERAL RESERVE
Pursuant to the AGM of Stockholders of the Company 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 Rp16,603 billion (Rp167.59 per share). The Company paid
cash dividend on July 5, 2023.
Pursuant to the AGM of Stockholders of the Company stated in Notarial Deed No. 04 dated
May 3, 2024 of Ashoya Ratam, S.H., M.Kn., the Company’s stockholders approved the distribution of
cash dividend for 2023 amounting to Rp17,683 billion (Rp178.50 per share). The Company paid cash
dividend on May 29, 2024.
Under the Limited Liability Company Law, the Company is required to establish a statutory reserve
amounting to at least 20% of its issued and paid-up capital.
The balance of the appropriated retained earnings of the Company as of September 30, 2024 and
December 31, 2023 is Rp15,337 billion, respectively.
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS
The details of pension and other post-employment benefit liabilities are as follows:
Notes September 30, 2024 December 31, 2023
Pension benefit and other post-employment
benefit obligations
Pension benefit
The Company - funded 30a.i.a
Defined pension benefit obligation 30a.i.a.i 3,628 3,666
Additional pension benefit obligation 30a.i.a.ii 43 44
The Company - unfunded 30a.i.b 168 258
Telkomsel 30a.ii 5,039 4,726
Projected pension benefit obligations 8,878 8,694
Net periodic post-employment health care
benefit 30b 1,742 1,470
Other post-employment benefit 30c 184 244
Long service employee benefit 30d 1 1
Obligation under the Labor Law 30e 1,095 1,005
Total 11,900 11,414
The details of net pension benefit expense recognized in the consolidated statements of profit or loss
and other comprehensive income is as follows:
Notes 2024 2023
Pension benefit cost
The Company - funded 30a.i.a
Defined pension benefit obligation 30a.i.a.i 412 487
Additional pension benefit obligation 30a.i.a.ii 2 2
The Company - unfunded 30a.i.b (32) 41
Telkomsel 30a.ii 498 473
Total periodic pension benefit cost 24 880 1,003
Net periodic post-employment health care
benefit cost 24,30b 272 190
Other post-employment benefit cost 24,30c 14 16
Long service employee benefit cost 24,30d 0 1
Obligation under the Labor Law 24,30e 140 146
Total 1,306 1,356
76
Page 80
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The following table presents the changes in projected pension benefit obligation and post-employment
health care benefit obligations, changes in pension benefit and post-employment health care benefit
plan assets, funded status of the pension plan and post-employment health care benefit plan, and net
amount recognized in the consolidated statements of financial position as of September 30, 2024 and
December 31, 2023, under the defined benefit pension plan:
Funded Post-employment
Defined pension benefit obligation health care benefit
The Company Telkomsel The Company
Projected
post-
Projected Projected employment Post-employment
pension Pension pension Pension health care health care
benefit benefit benefit benefit benefit benefit
obligations plan assets obligations plan assets obligation plan assets Total
Balance, January 1, 2024 23,718 (20,052) 5,796 (1,070) 14,624 (13,154) 9,862
Service costs 221 - 260 - - - 481
Settlement costs - - - - - - -
Interest costs (income) 1,150 (978) 289 (52) 724 (650) 483
Plan administration cost (89) 89 - 1 - 198 199
Interest expense on effect of asset ceiling - - - - - - -
Additional welfare benefits 34 - - - - - 34
Cost recognized in the consolidated
statement of profit or loss 1,316 (889) 549 (51) 724 (452) 1,197
Actuarial (gain) loss on:
Experience adjustments (267) - (84) - 116 - (235)
Changes in demographic assumptions - - (94) - - - (94)
Changes in financial assumptions - - - - - - -
Return on plan assets
(excluding amount included in
net interest expense) - 267 - 9 - (116) 160
Changes in asset ceiling - - - - - - -
Cost recognized in OCI (267) 267 (178) 9 116 (116) (169)
Employer’s contributions - (431) - (13) - - (444)
Pension plan participants’ contributions 11 (11) 0 (1) - - (1)
Benefits paid from plan assets (1,461) 1,461 - - (480) 480 -
Benefits paid by employer (34) - (1) (1) - - (36)
Benefit obligation from transferred employees - - - - - - -
Effect on transfer of Indihome
business to Telkomsel - - - - - - -
Balance, September 30, 2024 23,283 (19,655) 6,166 (1,127) 14,984 (13,242) 10,409
Projected pension benefit
obligation at end of year 3,628 5,039 1,742 10,409
77
Page 81
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The following table presents the changes in projected pension benefit obligation and post-employment
health care benefit obligations, changes in pension benefit and post-employment health care benefit
plan assets, funded status of the pension plan and post-employment health care benefit plan, and net
amount recognized in the consolidated statements of financial position as of September 30, 2024 and
December 31, 2023, under the defined benefit pension plan (continued):
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, 2023 23,136 (18,902) 5,128 (853) 12,878 (12,878) 8,509
Service costs 326 - 331 - - - 657
Settlement costs (2) 2 - - - - -
Interest costs (income) 1,573 (1,295) 369 (67) 913 (898) 595
Plan administration cost (126) 126 - - - 187 187
Interest expense on effect of asset ceiling - - - - - 3 3
Additional welfare benefits 50 - - - - - 50
Cost recognized in the consolidated
statement of profit or loss 1,821 (1,167) 700 (67) 913 (708) 1,492
Actuarial (gain) loss on:
Experience adjustments 91 - (76) - (907) - (892)
Changes in demographic assumptions - - - - - - -
Changes in financial assumptions 906 - (40) - 2,349 - 3,215
Return on plan assets
(excluding amount included in
net interest expense) - (473) - 25 - (89) (537)
Changes in asset ceiling - - - - - (88) (88)
Cost recognized in OCI 997 (473) (116) 25 1,442 (177) 1,698
Employer’s contributions - (1,635) - (4) - - (1,639)
Pension plan participants’ contributions 17 (17) - - - - -
Benefits paid from plan assets (1,972) 1,972 (149) - (586) 586 (149)
Benefits paid by employer (50) - - - - - (50)
Benefit obligation from transferred employees - - 233 (171) - - 62
Effect on transfer of Indihome
business to Telkomsel (231) 170 - - (23) 23 (61)
Balance, December 31, 2023 23,718 (20,052) 5,796 (1,070) 14,624 (13,154) 9,862
Projected pension benefit
obligation at end of year 3,666 4,726 1,470 9,862
The following table presents the changes in unfunded projected pension benefit obligations, additional
pension benefit obligations, other post-employment benefit obligations and obligations under the Labor
Law, changes in additional pension benefit plan assets, and net amount recognized in the consolidated
statements of financial position as of September 30, 2024 and December 31, 2023, under the defined
benefit pension plan:
The Company
The Company and its subsidiaries
Other
Additional post-employment Long service Obligations
pension benefit benefit employee under
Unfunded obligations obligations benefit the Labor Law Total
Balance, January 1, 2024 258 44 244 1 1,005 1,552
Service costs 6 0 4 0 135 145
Interest costs 12 2 11 - 5 30
Cost recognized in the consolidated
statement of profit or loss 18 2 15 0 140 175
Actuarial gain recognized in OCI - - - - (23) (23)
Benefits paid by employer (58) (3) (75) - (23) (159)
Divestment - - - - (3) (3)
Early Retirement Settlement (50) - - - (1) (51)
Balance, September 30, 2024 168 43 184 1 1,095 1,491
78
Page 82
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The following table presents the changes in unfunded projected pension benefit obligations, additional
pension benefit obligations, other post-employment benefit obligations and obligations under the Labor
Law, changes in additional pension benefit plan assets, and net amount recognized in the consolidated
statements of financial position as of September 30, 2024 and December 31, 2023, under the defined
benefit pension plan (continued):
The Company
The Company and its subsidiaries
Other
Additional post-employment Long 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 22 - 7 1 152 182
Interest costs 32 3 15 - 65 115
Cost recognized in the consolidated
statement of profit or loss 54 3 22 1 217 297
Actuarial (gain) loss recognized in OCI (246) (1) 2 - (41) (286)
Benefits paid by employer (53) (2) (38) (1) (102) (196)
Effect on transfer of Indihome business to Telkomsel (19) 0 (10) - 3 (26)
Balance, December 31, 2023 258 44 244 1 1,005 1,552
The components of net periodic pension benefit cost for the nine months period ended September 30,
2024 and 2023 are as follows:
The Company
and its
The Company Telkomsel subsidiaries
Post- Other
Defined Additional employment post- Long Defined
penison penison health care employment service penison Obligations
benefit benefit benefit benefit employee benefit under
2024 obligations obligations Unfunded cost obligations benefit obligations the Labor Law Total
Service costs 221 - 6 198 4 0 260 135 824
Interest costs 172 2 12 74 11 0 237 5 513
Interest costs in asset ceiling - - - - - - - - -
Plan administration cost - - - - - - 1 - 1
Additional welfare benefits 34 - - - - - - - 34
Net periodic pension benefit cost 427 2 18 272 15 0 498 140 1,372
Early Retirement Settlement - - (50) - (1) - - - (51)
Amount charged to subsidiaries
under contractual agreements (15) - - - - - - - (15)
Net periodic pension benefit
cost less charged
to subsidiaries 412 2 (32) 272 14 0 498 140 1,306
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 251 0 16 - 5 1 247 129 649
Interest costs 210 2 25 5 11 - 226 17 496
Interest costs in asset ceiling - - - 4 - - - - 4
Plan administration cost - - - 181 - - - - 181
Additional welfare benefits 50 - - - - - - - 50
Net periodic pension benefit cost 511 2 41 190 16 1 473 146 1,380
Amount charged to subsidiaries
under contractual agreements (24) - - - - - - - (24)
Net periodic pension
benefit coss less
charged to subsidiaries 487 2 41 190 16 1 473 146 1,356
79
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
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 Rp431 billion and
Rp1,635 billion, for the nine months period ended September 30, 2024 and for the year
ended December 31, 2023, 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.
80
Page 84
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
i. The Company (continued)
(a) Funded pension plan (continued)
(i) Defined pension benefit obligation (continued)
As of September 30, 2024 and December 31, 2023, plan assets consist of:
September 30, 2024 December 31, 2023
Quoted in Quoted in
active market Unquoted active market Unquoted
Cash and cash equivalents 801 - 559 -
Equity instruments:
Financials 1,523 - 1,799 -
Consumer non-cyclicals 45 - 98 -
Basic material 240 - 276 -
Infrastructures 608 - 741 -
Energy 216 - 161 -
Technology 37 - 41 -
Industrials 249 - 267 -
Consumer cyclicals 505 - 516 -
Properties and real estate 113 - 112 -
Healthcare 198 - 209 -
Transportation and logistic 7 - 7 -
Equity-based mutual fund 200 - 376 -
Fixed income instruments:
Corporate bonds - 2,092 - 2,447
Government bonds 10,710 - 10,257 -
Fixed income mutual funds ("RDPT") - 81 - 100
Index mutual funds - 15 - -
Midterm notes ("MTN") - 99 - 99
Asset-backed securities ("EBA") - 7 - 13
Sukuk - 971 - 1,054
Non-public equity:
Direct placement - 370 - 371
Property - 186 - 186
Others - 382 - 363
Total 15,452 4,203 15,419 4,633
Pension plan assets include Series B shares issued by the Company with fair values
totalling to Rp331 billion and Rp457 billion, representing 1.68% and 2.28% of total plan
assets as of September 30, 2024 and December 31, 2023, respectively, and bonds
issued by the Company with fair value totalling to Rp346 billion and Rp345 billion
representing 1.76% and 1.72% of total plan assets as of September 30, 2024 and
December 31, 2023, 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 Rp711 billion and Rp1,768 billion for the nine months period
ended September 30, 2024 and for the year ended December 31, 2023, respectively.
Based on the Company’s policy issued on January 14, 2014 regarding Dapen’s Funding
Policy, the Company will not contribute to Dapen when Dapen’s Funding Sufficiency
Ratio (“FSR”) is above 105%. Based on Dapen’s financial statement as of December
31, 2023, Dapen’s FSR is below 105%. Therefore, the Company will contribute to the
defined benefit pension plan.
81
Page 85
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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 2024 and 2023, the
Company provided employee welfare benefit to pensioners and pension beneficiaries
who entered their retirement period before June 30, 2002 amounting to Rp34 billion and
Rp50 billion, respectively.
The actuarial valuation for the defined benefit pension plan was performed based on
the measurement date as of December 31, 2023 and 2022, with reports dated
March 1, 2024 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI.
The principal actuarial assumptions used by the independent actuary for December 31,
2023 and 2022 are as follows:
2023 2022
Discount rate 6.75% 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 a 12-month 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 December 31, 2023 and 2022, with reports dated March 1,
2024 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal
actuarial assumptions used by the independent actuary for December 31, 2023 and
2022 are as follows:
2023 2022
Discount rate 6.75% 7.25%
Indonesian mortality table 2019 2019
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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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 has been set aside since 2018 according to the
approval by the Oversight Board. As of September 30, 2024, there is no additional
obligations 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 Rp41 billion and Rp50 billion, for the nine months
period ended September 30, 2024 and for the year ended December 31, 2023,
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 unfunded defined benefit pension plan was performed,
based on the measurement date as of December 31, 2023 and 2022, with reports dated
March 1, 2024 and March 8, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The
principal actuarial assumptions used by the independent actuary for December 31, 2023
and 2022 are as follows:
2023 2022
Discount rate 6.75% 7.00% -7.25%
Rate of compensation increases 6.10%-8.00% 6.10%-8.00%
Indonesian mortality table 2019 2019
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 responsibility for the full amount of the contributions.
83
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit costs (continued)
ii. Telkomsel (continued)
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 PT Asuransi
Jiwa IFG (“IFG Life”) when the agreement with IFG Life become effective and accordingly, the
restructuring agreement will be terminated. As of November 30, 2023, the cash fund had been
completely taken over by IFG Life with no changes was applied to the terms of the plan and
cash value being transferred at the transfer date, and accordingly, the restructuring agreement
was terminated.
On June 27, 2023, the Company and Telkomsel signed an agreement regarding Dapen to
appoint Telkomsel as a Partner of the Company as the sole Founder, which resulted in rights
and obligations to Telkomsel as governed in the Pension Fund Agreement effective from the
business transfer of IndiHome consumer business segment to Telkomsel.
Effective from the business transfer of IndiHome consumer business segment to Telkomsel,
Telkomsel sponsors a defined benefit pension plan for transferring employees hired prior to
July 1, 2002. The plan is governed by the pension laws in Indonesia and managed by Dapen.
Dapen is managed in accordance with the Pension Fund and Investment Directives
Regulations, which is determined by the Company as the Founder and is carried out by the
Board of Management. The Board of Management is monitored by the Oversight Board,
appointed by the Founder.
The pension benefits are paid based on the participating employee’s latest basic salary at
retirement and the number of years of their service. The participating employees contribute 18%
of their basic salaries to the pension fund. Telkomsel’s contribution to the pension fund for the
nine months period ended September 30, 2024 was amounting to Rp14 billion
(December 31, 2023: Rp21 billion).
The actuarial valuation for the defined benefit pension plan was performed based on the
measurement date as of December 31, 2023 and 2022 with reports dated March 5, 2024 and
February 28, 2023, respectively, by KKA Halim and Partner, an independent actuary in
association with Milliman. The principal actuarial assumptions used by the independent actuary
as of December 31, 2023 and 2022, are as follows:
2023 2022
Discount rate 6.70% 6.75% - 7.25%
Rate of compensation increases 7.50% - 8.00% 6.10% - 8.00%
Indonesian mortality table 2019 2019
b. Post-employment health care benefit cost
The Company provides post-employment health care benefits to all 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”).
84
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Post-employment health care benefit cost (continued)
The defined contribution post-employment health care benefit plan is provided to employees with
permanent status hired on or after November 1, 1995 or employees with terms of service less than
20 years at the time of retirement. The Company did not make contributions to Yakes Telkom for
the nine months period ended September 30, 2024 and for the year ended December 31, 2023. As
of September 30, 2024 and December 31, 2023, plan assets consists of:
September 30, 2024 December 31, 2023
Quoted in Quoted in
active market Unquoted active market Unquoted
Cash and cash equivalents 732 - 391 -
Equity instruments:
Financials 1,194 - 1,465 -
Consumer non-cyclicals 77 - 115 -
Basic material 230 - 260 -
Infrastructures 566 - 617 -
Energy 220 - 156 -
Technology 14 - 24 -
Industrials 246 - 261 -
Consumer cyclicals 395 - 394 -
Properties and real estate 123 - 110 -
Healthcare 141 - 147 -
Transportation and logistic 6 - 5 -
Equity-based mutual funds 347 - 434 -
Fixed income instruments:
Government obligations 1,607 - 1,269 -
Corporate obligations 79 - 6 -
Fixed income mutual funds 6,793 - 7,053 -
Exchange Traded Fund ("ETF") - - - -
Index mutual funds - - - -
Unlisted shares:
Private placement - 472 - 447
Total 12,770 472 12,707 447
Yakes Telkom plan assets also include Series B shares issued by the Company with fair value
totalling Rp242 billion and Rp321 billion, representing 1.82% and 2.45% of total plan assets as of
September 30, 2024 and December 31, 2023, respectively. Bonds issued by The Company with a
fair value of Rp53 billion and Rp6 billion each represent 0.40% and 0.04% of total assets as of
September 30, 2024 and December 31, 2023. 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 Rp765 billion and Rp987 billion for the nine
months period ended September 30, 2024 and for the year ended December 31, 2023,
respectively.
The actuarial valuation for the post-employment health care benefits plan was performed based on
the measurement date as of December 31, 2023 and 2022, with reports dated March 1, 2024 and
March 8, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal actuarial assumptions
used by the independent actuary for December 31, 2023 and 2022 are as follows:
2023 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 2023 2022
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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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 December 31, 2023 and 2022, with reports date March 1, 2024 and
March 8, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal actuarial assumptions
used by the independent actuary for December 31, 2023 and 2022 are as follows:
2023 2022
Discount rate 6.50% 6.75%
Indonesian mortality table 2019 2019
d. Long service employee benefits
The Company provides long service employee benefits to employee hired before July 1, 2002 and
have a service period of more than 30 years and retired after September 19, 2019. Total obligation
recognized as of September 30, 2024 and December 31, 2023 amounted to Rp1 billion,
respectively. The related long service employee benefits cost charged to expense amounted to
Rp0 billion and Rp1 billion for the nine months period ended September 30, 2024 and 2023,
respectively.
e. Obligation under the Labor Law
Under Law No. 11 Year 2020, the Group is required to provide minimum pension benefits, if not
covered yet by the sponsored pension plans, to its employees upon retirement. Total obligation
recognized as of September 30, 2024 and December 31, 2023 amounted to Rp1,095 billion and
Rp1,005 billion, respectively. The related pension employee benefits cost charged to expense
amounted to Rp140 billion and Rp146 billion for the nine months period ended September 30, 2024
and 2023, respectively.
f. Maturity Profile of Defined Benefit Obligation (“DBO”)
The timing of benefits payments and weighted average duration of DBO for 2024 and 2023 are as
follows:
Expected Benefits Payment
The Company
Funded
Defined Additional Post-employment Other post- Post-employment
pension benefit pension benefit health care employment benefits
Time Period obligation obligation Unfunded Telkomsel benefits benefits UUCK (Telkom)
September 30, 2024
Within next 10 years 19,583 35 282 8,833 8,449 209 82
Within 10-20 years 15,850 30 80 13,778 13,651 116 426
Within 20-30 years 9,623 16 139 9,184 12,128 71 485
Within 30-40 years 3,630 5 21 439 5,114 3 49
Within 40-50 years 693 1 - - 819 - -
Within 50-60 years 53 - - - 48 - -
Within 60-70 years 1 - - - 5 - -
Within 70-80 years - - - - - - -
Weighted average
duration of DBO 8.42 years 8.42 years 5.54 years 9.18 years 12.39 years 4.51 years 11.18 years
86
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
f. Maturity Profile of Defined Benefit Obligation (“DBO”) (continued)
The timing of benefits payments and weighted average duration of DBO for 2024 and 2023 are as
follows (continued):
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)
December 31, 2023
Within next 10 years 21,044 39 340 8,833 8,929 281 83
Within 10-20 years 15,850 30 79 13,778 13,651 116 426
Within 20-30 years 9,623 16 139 9,184 12,128 70 485
Within 30-40 years 3,630 5 21 439 5,114 3 49
Within 40-50 years 693 1 - - 819 - -
Within 50-60 years 53 - - - 48 - -
Within 60-70 years 1 - - - 5 - -
Within 70-80 years - - - - 1 - -
Weighted average
duration of DBO 8.42 years 8.42 years 5.54 years 9.18 years 12.39 years 4.51 years 11.18 years
g. Sensitivity Analysis
As of September 30, 2024 and December 31, 2023, 1% change in discount rate and rate of
compensation would have effect on DBO, are as follows:
Discount Rate Rate of Compensation
1% Increase 1% Decrease 1% Increase 1% Decrease
Increase (decrease) in amounts Increase (decrease) in amounts
Sensitivity
September 30, 2024
Funded:
Defined pension benefit obligation (1,993) 2,342 231 (220)
Unfunded (7) 8 8 (8)
Telkomsel (564) 642 694 (621)
Post-employment health care benefits (1,649) 1,986 1,890 (1,603)
Other post-employment benefits (9) 10 3 (3)
Post-employment benefits UUCK (Telkom) (11) 13 36 (31)
December 31, 2023
Funded:
Defined pension benefit obligation (2,030) 2,387 235 (224)
Unfunded (10) 12 13 (12)
Telkomsel (529) 602 651 (582)
Post-employment health care benefits (1,609) 1,939 1,845 (1,565)
Other post-employment benefits (11) 12 3 (3)
Post-employment benefits UUCK (Telkom) (10) 12 33 (28)
87
Page 91
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
g. Sensitivity Analysis (continued)
The sensitivity analysis was 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 Rp1,268 billion and Rp1,153 billion as of
September 30, 2024 and December 31, 2023, respectively. The related benefit costs charged to
expense amounted Rp208 billion and Rp218 billion for the nine months period ended September 30,
2024 and 2023, respectively (Note 24).
88
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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
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) Entity under common control Internet and data service revenues and other
(“Pertamina”) telecommunication service revenues
State-owned banks Entity under common control Finance income and finance costs
BNI Entity under common control Internet and data service revenues, other
telecommunication service revenues, finance
income, and finance costs
BRI Entity under common control Internet and data service revenues, other
telecommunication service revenues, finance
income, and finance costs
Bank Mandiri Entity under common control Internet and data service revenues, other
telecommunication service revenues, finance
income, and finance costs
PT Perusahaan Listrik Negara Entity under common control Internet and data service revenues, other
(“PLN”) telecommunication service revenues, and
electricity expenses
Indonesia Financial Group Entity under common control Fixed assets insurance expenses and personal
insurance expenses
Bahana TCW Entity under common control Mutual funds
Sarana Multi Infrastruktur Entity under common control Other borrowing and finance costs
Other state-owned enterprises Entity under common control Internet and data service revenues, other
telecommunication services revenues,
operating expenses, and purchase of property
and equipments
PT Kereta Cepat Indonesia China Associated company
Other related entities Other telecommunication service revenue
(“KCIC”)
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 as of September 30, 2024 and December
31, 2023 are unsecured and interest-free and the settlement occurs in cash. There have been no
guarantees provided or received for any related party receivables or payables. As of September 30,
2024 and December 31, 2023, the Group recorded an increase of impairment loss from trade receivables
of related party amounted to Rp74 billion and Rp47 billion, respectively.
89
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
b. Significant transactions with related parties
2024 2023
% of total % of total
Amount revenues Amount revenues
Revenues
Majority Stockholder
Ministry of Finance 237 0.21 79 0.07
Entities under common control
Indosat 1,703 1.52 1,675 1.51
Pertamina 486 0.43 592 0.53
BNI 430 0.38 402 0.36
BRI 294 0.26 167 0.15
Bank Mandiri 263 0.23 103 0.09
Others (each below Rp100 billion) 618 0.55 899 0.81
Sub-total 3,794 3.37 3,838 3.45
Other related entities
KCIC 257 0.23 - -
Others 39 0.03 43 0.04
Sub-total 296 0.26 43 0.04
Associated companies 7 0.01 11 0.01
Total 4,334 3.85 3,971 3.57
2024 2023
% of total % of total
Amount expenses Amount expenses
Expenses
Entities under common control
PLN 2,070 2.59 1,952 2.56
Indosat 460 0.58 410 0.54
Indonesia Financial Group 141 0.18 148 0.19
Others (each below Rp100 billion) 158 0.20 229 0.30
Sub-total 2,829 3.55 2,739 3.59
Other related entities
Padi UMKM 402 0.50 421 0.55
Others (each below Rp100 billion) 56 0.07 56 0.07
Sub-total 458 0.57 477 0.62
Associated companies 86 0.11 92 0.12
Total 3,373 4.23 3,308 4.33
2024 2023
% of total % of total
Amount finance income Amount finance income
Finance income
Entities under common control
State-owned banks 271 26.57 239 31.53
Total 271 26.57 239 31.53
2024 2023
% of total % of total
Amount finance cost Amount finance cost
Finance cost
Majority stockholder
Ministry of Finance 1 0.03 4 0.12
Entities under common control
State-owned banks 809 20.97 866 25.01
Sarana Multi Infrastruktur 8 0.21 64 1.85
Total 818 21.21 934 26.98
90
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
b. Significant transactions with related parties (continued)
2024 2023
% of total % of total
Amount purchases Amount purchases
Purchase of property
and equipment
Entities under common control 25 0.14 33 0.15
Total 25 0.14 33 0.15
2024 2023
% of total % of total
Amount revenues Amount revenue
Distribution of SIM
card and voucher
Associated companies 81 0.07 588 0.53
Total 81 0.07 588 0.53
c. Balance of accounts with related parties
September 30, 2024 December 31, 2023
% of total % of total
Amount assets Amount assets
Cash and cash equivalents
(Note 3) 19,179 6.73 19,024 6.63
Other current financial
asset (Note 4) 639 0.22 800 0.28
Trade receivables
(Note 5) 2,195 0.77 1,918 0.67
Contract assets
Majority stockholder
Ministry of Finance 16 0.01 36 0.01
Entities under common control 230 0.08 252 0.09
Associated companies 1 0.00 1 0.00
Other related entities 2 0.00 1 0.00
Total 249 0.09 290 0.10
Other current asset 28 0.01 53 0.02
Other non-current asset 4 0.00 5 0.00
September 30, 2024 December 31, 2023
% of total % of total
Amount liabilities Amount liabilities
Trade payables (Note 15)
Majority stockholder
Ministry of Finance 17 0.01 18 0.01
Entities under common control
State-owned enterprises 232 0.18 302 0.23
Indosat 146 0.11 129 0.10
Others - - 12 0.01
Sub-total 378 0.29 443 0.34
Associated companies 2 0.00 40 0.03
Other related entities 76 0.06 84 0.06
Total 473 0.36 585 0.44
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 September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
c. Balance of accounts with related parties (continued)
September 30, 2024 December 31, 2023
% of total % of total
Amount liabilities Amount liabilities
Accrued expenses
Majority stockholder
Ministry of Finance - - 1 0.00
Entities under common control
State-owned enterprises 147 0.11 137 0.10
State-owned banks 79 0.06 39 0.03
Sub-total 226 0.17 176 0.13
Associated companies 1 0.00 - -
Total 227 0.17 177 0.13
Contract liabilities
Majority stockholder
Ministry of Finance 19 0.01 18 0.01
Entities under common control
State-owned enterprises 370 0.28 312 0.24
Others 0 0.00 1 0.00
Sub-total 370 0.28 313 0.24
Associated companies 9 0.01 13 0.01
Other related entities
KCIC 1,083 0.83 1,133 1
Others 3 0.00 2 0.00
Sub-total 1,086 0.83 1,135 0.87
Total 1,484 1.13 1,479 1.13
Customer deposits 19 0.01 19 0.01
Short-term bank loans (Note 18) 4,872 3.73 4,916 3.77
Two-step loans (Note 19a) 41 0.03 84 0.06
Long-term bank loans (Note 19c) 15,555 11.89 11,099 8.51
Other borrowings (Note 19d) - - 362 0.28
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 enabling Indosat’s mobile customers to access the
Company’s International Direct Dialing (“IDD”) service by dialing “007”.
92
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
d. Significant agreements with related parties (continued)
ii. Indosat (continued)
Indosat's owner, Ooredoo, has merged with Tri, CK Hutchison Holdings (“CKHH”) by merging
their companies into Indosat Ooredoo Hutchison. With this merger and the latest MoCI
Regulation No. 5 of 2021, the Company has amended the interconnection cooperation
agreement for fixed-line networks (local, Sambungan Langsung Jarak Jauh ("SLJJ"), and
international) and mobile networks on May 30, 2023 in order to implement cost-based tariff
obligations based on the 2014 Interconnection Offering Document.
The Company also provides leased lines to Indosat and its subsidiaries, namely PT Aplikanusa
Lintasarta (“Lintasarta”). The leased lines can be used by these companies for telephone,
telegraph, data, telex, facsimile, or other telecommunication services.
e. Remuneration of key management and supervisory personnel
Key management personnel consists of the Directors of the Company and supervisory personnel
consists of the 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 along with the leadership and
management duties of the Directors. Total of such remuneration is as follows:
2024 2023
% of total % of total
Amount expenses Amount expenses
Board of Directors 420 0.53% 311 0.41%
Board of Commissioners 145 0.18% 131 0.17%
The amounts disclosed in the table are amounts recognized as general and administration expense
during the reporting periods.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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 residential customers. The enterprise segment
provides end-to-end solution to corporate and institutional customers. The WIB segment provides
interconnection services, broadband access, information technology services, data, and internet
services to other licensed telecommunication operator and international customers. Other segment
provides digital content products (music and game), big data, Business to Business (“B2B”)
Commerce, and financial services to individual and corporate customers. There are 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 group basis and are not separately monitored and allocated to operating segments.
Segment revenues and expenses include inter-segment transactions and are accounted at prices that
management believes represent market prices.
2024
Adjustment
Total and Total
Mobile Consumer Enterprise WIB Others segment elimination consolidated
Segment results
Revenues
External revenues 62,871 19,644 15,150 13,410 733 111,808 411 112,219
Inter-segment revenues 2,309 99 18,487 15,875 1,319 38,089 (38,089) -
Total segment revenues 65,180 19,743 33,637 29,285 2,052 149,897 (37,678) 112,219
Segment results 19,631 6,554 333 6,966 (865) 32,619 (3,002) 29,617
Other information
Capital expenditures (9,065) (3,667) (2,052) (2,602) (7) (17,393) (90) (17,483)
Depreciation and
amortization (15,564) (4,417) (2,563) (5,019) (14) (27,577) 3,327 (24,250)
Provision recognized in
current period (108) (415) (282) (32) (7) (844) (145) (989)
2023
Adjustment
Total and Total
Mobile Consumer Enterprise WIB Others segmen elimination consolidated
Segment results
Revenues
External revenues 63,788 19,748 14,597 12,331 292 110,756 482 111,238
Inter-segment revenues 2,647 240 18,463 15,418 1,474 38,242 (38,242) -
Total segment revenues 66,435 19,988 33,060 27,749 1,766 148,998 (37,760) 111,238
Segment results 21,692 6,495 921 6,788 (826) 35,070 (2,788) 32,282
Other information
Capital expenditures (8,627) (4,084) (3,826) (5,452) (6) (21,995) (89) (22,084)
Depreciation and
amortization (15,662) (4,349) (2,800) (4,652) (14) (27,477) 3,396 (24,081)
Provision recognized in
current period (246) (364) (69) (26) (4) (709) 72 (637)
94
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
33. OPERATING SEGMENTS (continued)
Adjustments and eliminations:
a. Revenue reconciliation
2024 2023
Total segment revenues 149,897 148,998
Revenue from other non-operating segments 411 482
Adjustment and inter-segment elimination (38,089) (38,242)
Consolidated revenues 112,219 111,238
b. Segment results reconciliation
2024 2023
Total segment results 32,619 35,070
Loss from other non-operating segments (1,435) (1,481)
Adjustment and inter-segment elimination 1,266 1,393
Finance income 1,020 758
Finance cost (3,857) (3,462)
Share of profit of long-term investment in associates 4 4
Consolidated profit before income tax 29,617 32,282
c. Capital expenditure reconciliation
2024 2023
Total segment capital expenditure (17,393) (21,995)
Capital expenditure from
other non-operating segments (90) (89)
Consolidated capital expenditure (17,483) (22,084)
d. Depreciation and amortization reconciliation
2024 2023
Total segment depreciation and amortization (27,577) (27,477)
Depreciation and amortization from
other non-operating segments (154) (186)
Adjustment and inter-segment elimination 3,481 3,582
Consolidated depreciation and amortization (24,250) (24,081)
e. Provision recognized in current period reconciliation
2024 2023
Total segment provision (844) (709)
Provision recognized from other
non-operating segments (15) (23)
Adjustment and inter-segment elimination (130) 95
Consolidated provision recognized
in current period (989) (637)
95
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
33. OPERATING SEGMENTS (continued)
Geographic information:
2024 2023
External revenues
Indonesia 105,853 105,375
Abroad 6,366 5,863
Total 112,219 111,238
The revenue information above is based on the location of the customers.
There are no revenue from major customer which exceeds 10% of total revenues for the nine months
period ended September 30, 2024 and 2023.
September 30, 2024 December 31, 2023
Non-current operating assets
Indonesia 185,970 186,554
Abroad 2,772 2,932
Total 188,742 189,486
Non-current operating assets for segment reporting purpose consist of property and equipment and
intangible assets.
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.
96
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
34. TELECOMMUNICATIONS SERVICE TARIFFS (continued)
c. Interconnection tariffs
The Indonesian Telecommunication Regulatory Body (“ITRB”), in its letter No. 262/BRTI/XII/2011
dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost basis
with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all telecommunication
provider operators.
Based on letter No.118/KOMINFO/DJPPI/PI.02.04/01/2014 dated January 30, 2014 of the Director
General of Post and Informatics, the Director General of Post and Informatics decided to implement
new interconnection tariff effective from February 1, 2014 until December 31, 2016, subject to
evaluation on an annual basis. Pursuant to the Director General of Post and Informatics letter, the
Company and Telkomsel are required to submit the Reference Interconnection Offer (“RIO”)
proposal to ITRB to be evaluated.
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.
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.
97
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS
a. Capital expenditures
As of September 30, 2024, capital expenditures committed under the contractual arrangements
are Rp8,225 billion, US$239 million, and HKD 0.52 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, 2027 Ultimate Solution ("ROA") and TSA
PT ZTE Indonesia
Telkomsel, PT Sempurna Global Procurement Agreement of Next
Pratama, PT Lintas Teknologi September 1, 2021 - Generation of Gateway GPRS
Indonesia, and PT Ericsson September 1, 2024 Support Node ("GGSN") (Virtualized
Indonesia EPC)*
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
Solutions Development
Telkomsel and PT Application October 8, 2021 -
TSA for OCS and SCP
Solutions October 8, 2024
Procurement and Installation
Telkomsat and Thales Alenia October 28, 2021 -
Agreement of HTS 113BT Satellite
Space France ("TAS") October 27, 2037
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")
* Telkomsel is currently renewing this agreement.
98
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
b. Borrowings and other credit facilities
(i) As of September 30, 2024, 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, 2026 Rp 11
BNI 500 March 31, 2025 Rp 44
Bank Mandiri 500 June 21, 2025 Rp 126
Total 1,500 181
(ii) As of September 30, 2024, Telkomsel has bank guarantee facilities for various projects, as
follows:
Lenders Total facility Maturity Currency Facility utilized
BRI 1,000 September 25, 2028 Rp 617
BNI 2,100 December 11, 2024 Rp 1,452
Total 3,100 2,069
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 bank guarantee facilities from Bank Mandiri with a maximum credit limit of US$25
million or equal to Rp379 billion will expire on December 23, 2024. As of September 30, 2024,
there is no bank guarantee facility used.
c. Others
(i) Radio frequency usage
With reference to Law No. 36 of 1999, the use of radio frequency spectrum and the cost of
using radio frequency are determined by the government. With reference to the Decision Letter
No. 025/TEL.01.02/2022 Year 2022 dated January 28, 2022 of the MoCI, the MoCI granted
Telkomsel the rights to provide mobile telecommunication services with radio frequency
bandwidth in the 800 MHz, 900 MHz, 1,800 MHz, 2.1 GHz and 2.3 GHz; and basic
telecommunication services.
With reference to Decision Letters No. 509 Year 2016, No. 1896 year 2017, No. 806 Year
2019, No. 620 Year 2020, No. 178 Year 2021, No. 479 Year 2022, No. 90 Year 2023, and
No. 188 Year 2023 of the MoCI, Telkomsel is required, among other things, to:
1. Issue a surety bond each year amounting Rp1.03 trillion for spectrum 2.3 GHz.
2. Issue a surety bond each year amounting Rp360 billion for both spectrum 2.3 GHz
Block A and C.
3. Issue a surety bond amounting Rp617.15 billion for spectrum 2.1 GHz.
4. Pay an annual right of usage (“BHP”) as set forth in the decision letters. The BHP is
payable upon receipt of Surat Pemberitahuan Pembayaran (notification letter) from the
DGPI. The BHP fee is payable annually up to the expiry period of the license.
The following are radio frequency band licenses owned by Telkomsel along with the BHP fees
paid during current year:
1. Radio frequency for band 800 MHz, 900 MHz, and 1,800 MHz
Based on Decree No. 620 Year 2020 of the MoCI, concerning the extension of the
determination of radio frequency bands 800 MHz, 900 MHz and 1,800 MHz, Telkomsel
should pay annual frequency usage fees from 2020 to 2030.
99
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(i) Radio frequency usage (continued)
2. Radio frequency for band up to 2.1 GHz
license
License No. Description
Decree No. 90 Year 2023 of On February 27, 2023, Telkomsel was granted to
the MoCI amd. Decree No. 76 utilize the annual radio frequency license for band
Year 2023 of the MoCI 1,975 - 1,980 MHz paired with 2,165 - 2,170 MHz until
March 18, 2033.
Decree No. 509 Year 2016 of MoCI granted the extension of the radio frequency
the MoCI amd. Decree No. 76 license for band 1,970 - 1,975 MHz paired with 2,160
Year 2023 of the MoCI - 2,165 MHz until March 28, 2026.
Decree No. 806 Year 2019 of MoCI granted the extension of the radio frequency
the MoCI amd. Decree No. 76 license for band 1,965 - 1,970 MHz paired with 2,155
Year 2023 of the MoCI - 2,160 MHz until September 30, 2029.
Decree No. 479 Year 2022 of Telkomsel as the winner of auction and was granted to
the MoCI amd. Decree No. 76 utilize the radio frequency license for band 1,960 -
Year 2023 of the MoCI 1,965 MHz paired with 2,150 - 2,155 MHz effective
from January 11, 2023.
3. Radio frequency for band up to 2.3 GHz
License No. Description
Decree No. 1896 Year 2017 Telkomsel was appointed to use the radio frequency
of the MoCI license for band 2,300 - 2,330 Mhz until 2026.
Decree No. 178 Year 2021 of Telkomsel as the winner to utilize the radio frequency
the MoCI license for band 2,330 - 2,340 MHz paired with
2,340 - 2,350 MHz for Block A and Block C,
respectively until 2030.
Decree No. 487 Year 2022 of On November 18, 2022, Telkomsel received a right to
the MoCI amd. Decree No. 92 use reallocated radio frequency license for band
Year 2023 of the MoCI 2,340 - 2,355 MHz paired with 2,330 - 2,360 MHz.
Decree No. 188 Year 2023 of On April, 2023, Telkomsel was granted an approval to
the MoCI allocate part of the rights-of-use of 2.3 GHz radio
frequency spectrum to PT Smart Telecom.
(ii) Radio frequency spectrum cooperation agreement
The MoCI has given approval to Telkomsel for a cooperation on the use of radio frequency
spectrum with KCIC through a letter No. B-171/M.KOMINFO/SP.01.01/03/2023 dated March
17, 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, KCIC shall pay to the Company several compensations, which
are annual utilization fees totaling Rp878 billion, network recovery fee of Rp1,250 billion, as
well as incremental operational and maintenance costs
100
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
c. Others (continued)
(iii) Supplier of Google product cooperation agreement
On November 10, 2022, Sigma and PT Google Cloud Indonesia (“Google”) signed a
cooperation agreement authorizing Sigma as a supplier of Google products. This Agreement
requires Sigma to meet the minimum commitment to purchase Google products and is
obligated to pay the difference between the realized value of the purchase of Google products
and the minimum commitment. The minimum commitment values from November 2023 up to
November 2024 and November 2024 up to November 2025 are US$4,500 million and
US$9,000 million, respectively.
(iv) Conditional Sale and Purchase Agreement of Telkomsel with PT Dhost Telekomunikasi
Nusantara (”Dhost”)
On June 26, 2024, Telkomsel entered-into a Conditional Sale and Purchase Agreement with
Dhost for sale of 850 units in-building telecommunication coverage antenna system (“IBS”)
with total consideration of Rp685 billion. Which 689 units of the IBS is used by Dhost to fulfill
in-building coverage service to Telkomsel as governed by Master Service Agreement dated
June 28, 2024. Telkomsel has assessed this transaction does not meet the lease criteria under
PSAK 116 and recorded gain on sale of Rp642 billion.
(v) USO
On December 27, 2011, Telkomsel (on behalf of Konsorsium Telkomsel, a consortium which
was established with Mitratel on December 9, 2011) was selected by Balai Penyedia dan
Pengelola Pembiayaan Telekomunikasi dan Informatika (“BPPPTI”), now has been renamed
as Badan Aksesibilitas Telekomunikasi dan Informasi (“BAKTI”) as a provider of the USO
Program in the border areas with a total price of Rp261 billion.
In 2015, the Program was ceased. In January 2016, Telkomsel filed an arbitration claim to
BANI for the settlement of the outstanding receivables of USO Programs.
On June 22, 2017, Telkomsel received a decision letter from BANI No. 792/1/ARB-BANI/2016
requesting BAKTI to pay compensation to Telkomsel amounting to Rp218 billion, and as of
the date of the issuance of these consolidated financial statements Telkomsel has received
the payment from BAKTI amounting to Rp91 billion (before tax) and no additional payment.
The MoCI issued Regulation No. 5 Year 2021 dated March 31, 2021 which replaced previous
regulations regarding policies underlying the USO program. The regulation requires
telecommunications operators in Indonesia to contribute 1.25% of gross revenues (with due
consideration for bad debts and/or interconnection charges and/or connection charges and/or
the exclusion of certain revenues that are not considered as part of gross revenues as a basis
to calculate the USO charged) for USO development.
Based on Decree No. 827/KOMINFO/BAKTI.31/KS.1/10/2021 dated October 4, 2021 of BAKTI
granted Telkomsel as operating cooperation partners (“KSO”) for eight packages KSO, which
cover Nusa Tenggara, Kalimantan, Sulawesi, Maluku, West Papua, West Central Papua,
North Central Papua and South East Papua for period from 2021 until 2031.
101
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
36. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
September 30, 2024
US Dollar Japanese Yen Others* Rupiah equivalent
(in millions) (in millions) (in millions) (in billions)
Assets
Cash and cash equivalents 407.64 5.64 15.68 6,358
Other current financial assets 135.68 - 2.28 2,088
Trade receivables
Related parties 0.25 - 0.04 5
Third parties 201.22 - 7.83 3,155
Contract assets 2.57 - 26.47 397
Other receivables 0.97 - 9.10 151
Other current assets 3.34 - 1.39 54
Long-term investment in financial instruments 382.65 - 7.07 5,898
Other non-current assets 0.43 - 1.62 15
Total assets 1,134.75 5.64 71.48 18,121
Liabilities
Trade payables
Related parties (0.04) - - (1)
Third parties (207.57) (25.41) (10.01) (3,264)
Other payables 3.55 - (8.71) (49)
Accrued expenses (33.77) (4.16) (1.65) (528)
Customer deposits (2.95) - (0.17) (47)
Current maturities of long-term borrowings (4.40) (383.95) (14.78) (168)
Long-term borrowings - net of current maturities (10.97) - (64.47) (439)
Other liabilities (0.09) - (61.88) (1)
Total liabilities (256.24) (413.52) (161.67) (4,497)
Assets (liabilities) - net 878.51 (407.88) (90.19) 13,624
December 31, 2023
US Dollar Japanese Yen Others* Rupiah equivalent
(in millions) (in millions) (in millions) (in billions)
Assets
Cash and cash equivalents 263.35 5.66 16.23 4,271
Other current financial assets 27.15 - - 419
Trade receivables
Related parties 0.14 - 0.03 2
Third parties 152.98 - 11.71 2,525
Contract assets 6.90 - - 107
Other receivables 0.51 - 1.10 25
Other current assets 1.40 - 2.61 34
Long-term investment in financial instruments 376.76 - 5.90 5,902
Other non-current assets 0.35 - 0.49 14
Total assets 829.54 5.66 38.07 13,299
Liabilities
Trade payables
Related parties (0.14) - - (2)
Third parties (164.46) (26.73) (10.42) (2,677)
Other payables 2.32 - (7.73) (55)
Accrued expenses (32.26) (2.61) (4.53) (549)
Customer deposits (2.93) - (0.14) (47)
Current maturities of long-term borrowings (11.29) (767.90) (0.25) (262)
Long-term borrowings - net of current maturities (31.89) - (1.62) (516)
Other liabilities (0.09) - - (1)
Total liabilities (240.74) (797.24) (24.69) (4,109)
Assets (liabilities) - net 588.80 (791.58) 13.38 9,190
*Assets and liabilities denominated in other foreign currencies are presented as US 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.
102
Page 106
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS
a. Fair value of financial assets and financial liabilities
i. Classification
(a) Financial asset
September 30, 2024 December 31, 2023
Amortized cost
Cash and cash equivalents 24,540 29,007
Other current financial assets 2,683 1,359
Trade receivables 12,570 10,667
Other receivables 413 266
Other non-current assets 154 155
FVTPL
Long-term investment in financial instruments 7,540 8,028
Other current financial assets 88 302
FVTOCI
Long-term investment in financial instruments 25 25
Total financial assets 48,013 49,809
(b) Financial liabilities
September 30, 2024 December 31, 2023
Financial liabilities measured at amortized cost
Trade payables 14,381 18,608
Other payables 405 441
Accrued expenses 13,050 13,079
Customers deposits 39 42
Short-term bank loans 10,655 9,650
Two-step loans 41 84
Bonds and MTN 5,591 5,343
Long-term bank loans 33,213 32,260
Other borrowings - 362
Lease liabilities 23,639 20,425
Total financial liabilities 101,014 100,294
ii. Fair values
The following table presents comparison of the carrying amounts and fair values of the
Company’s financial instruments, other than those the fair values are considered to
approximate their carrying amounts as the impact of discounting is not significant:
Fair value measurement at reporting date using
Quoted prices in
active markets Significant
for identical other Significant
assets or observable unobservable
Carrying liabilities inputs inputs
September 30, 2024 value Fair value (level 1) (level 2) (level 3)
FVTPL
Other current financial assets 88 88 88 - -
Long-term investment in financial instruments 7,540 7,540 1,574 - 5,966
FVTOCI
Long-term investment in financial instruments 25 25 - - 25
Financial liabilities at amortized cost
Interest-bearing loans and other borrowings:
Two-step loans 41 41 - - 41
Bonds and MTN 5,591 6,335 5,790 - 545
Long-term bank loans 33,213 33,251 - - 33,251
Lease liabilities 23,639 23,639 - - 23,639
Total 70,137 70,919 7,452 - 63,467
103
Page 107
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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, 2023 value Fair value (level 1) (level 2) (level 3)
FVTPL
Other current financial assets 302 302 302 - -
Long-term investment in financial instruments 8,028 8,028 2,056 - 5,972
FVTOCI
Long-term investment in financial instruments 25 25 - - 25
Financial liabilities at amortized cost
Interest-bearing loans and other borrowings:
Two-step loans 84 83 - - 83
Bonds and MTN 5,343 6,120 5,586 - 534
Long-term bank loans 32,260 31,473 - - 31,473
Other borrowings 362 362 - - 362
Lease liabilities 20,425 20,425 - - 20,425
Other liabilities 141 141 - - 141
Total 66,970 66,959 7,944 - 59,015
Gain on fair value measurement recognized in consolidated statements of profit or loss and
other comprehensive income for the nine months period ended September 30, 2024
amounting to Rp115 billion.
Reconciliations of the beginning and ending balances for items measured at fair value using
significant unobservable inputs (level 3) for the nine months period ended September 30, 2024
and for the year ended December 31, 2023 are as follows:
September 30, 2024 December 31, 2023
Beginning balance 5,997 6,358
Gain (loss) recognized in consolidated statement
of profit or loss and other comprehensive income 115 (687)
Purchase/addition (122) 330
Settlement/deduction 1 (4)
Ending balance 5,991 5,997
104
Page 108
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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 Group Financial Accounting & Treasury unit under
policies approved by the Board of Directors. The Group Financial Accounting & Treasury 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 US Dollars and Japanese Yen. The Group’s exposures to other foreign exchange
rates are not material.
105
Page 109
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
b. Financial risk management objectives and policies (continued)
i. Foreign exchange risk (continued)
Increasing risks of foreign currency exchange rates on the obligations of the Group are
expected to be partly offset by the effects of the exchange rates on time deposits and
receivables in foreign currencies that are equal to at least 25% of the outstanding current
foreign currency liabilities.
The following table presents the Group’s financial assets and financial liabilities exposure to
foreign currency risk:
September 30, 2024 December 31, 2023
US Dollar Japanese Yen US Dollar Japanese Yen
(in billions) (in billions) (in billions) (in billions)
Financial assets 1.13 0.01 0.83 0.01
Financial liabilities (0.26) (0.41) (0.24) (0.80)
Net exposure 0.87 (0.40) 0.59 (0.79)
Sensitivity analysis
A strengthening of the US Dollar and Japanese Yen, as indicated below, against the Rupiah
at September 30, 2024 would have decreased equity and profit or loss by the amounts shown
below. This analysis is based on foreign currency exchange rate variances that the Group
considered to be reasonably possible at the reporting date. The analysis assumes that all other
variables, in particular interest rates, remain constant.
Equity/profit (loss)
September 30, 2024
US Dollar (1% strengthening) 133
Japanese Yen (5% strengthening) (2)
A weakening of the US Dollar and Japanese Yen against the Rupiah at September 30, 2024,
would have had an equal but opposite effect on the above currencies to the amounts shown
above, on the basis that all other variables remain constant.
ii. Market price risk
The Group is exposed to changes in debt and equity market prices related to financial assets
measured at FVTPL carried at fair value. Gains and losses arising from changes in the fair
value of financial assets measured at FVTPL are recognized in the consolidated statements
of profit or loss and other comprehensive income.
The performance of the Group’s financial assets measured at FVTPL is monitored periodically,
together with a regular assessment of their relevance to the Group’s long-term strategic plans.
As of September 30, 2024, 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.
106
Page 110
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
b. Financial risk management objectives and policies (continued)
iii. Interest rate risk
Interest rate fluctuation is monitored to minimize any negative impact to financial performance.
Borrowings at variable interest rates expose the Group to interest rate risk (Notes 18 and 19).
To measure market risk pertaining to fluctuations in interest rates, the Group primarily uses
interest margin and maturity profile of the financial assets and liabilities based on changing
schedule of the interest rate.
At reporting date, the interest rate profile of the Group’s interest-bearing borrowings was as
follows:
September 30, 2024 December 31, 2023
Fixed rate borrowings 45,958 38,386
Variable rate borrowings 27,181 29,738
Sensitivity analysis for variable rate borrowings
As of September 30, 2024, a decrease (increase) by 25 basis points in interest rates of variable
rate borrowings would have increased (decreased) equity and profit or loss by Rp68 billion,
respectively. The analysis assumes that all other variables, in particular foreign currency rates,
remain constant.
iv. Credit risk
The following table presents the maximum exposure to credit risk of the Group’s financial
assets:
September 30, 2024 December 31, 2023
Cash and cash equivalents 24,540 29,007
Other current financial assets 2,771 1,661
Trade receivable 12,570 10,667
Other receivable 413 266
Other non-current assets 154 155
Total 40,448 41,756
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 Financial Accounting & Treasury 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 4.38% of trade receivables as of September 30,
2024 (2023: 3.53%).
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.
107
Page 111
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of 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 2028 and
amount cash flows 2024 2025 2026 2027 thereafter
September 30, 2024
Trade payables 14,381 (14,381) (14,381) - - - -
Other payables 405 (405) (405) - - - -
Accrued expenses 13,050 (13,050) (13,050) - - - -
Customer deposits 39 (39) (39) - - - -
Interest bearing loans and
other borrowings:
Short-term bank loans 10,655 (10,655) (10,655) - - - -
Two-step loans 41 (41) (41) - - - -
Bonds and MTN 5,591 (9,996) (3,377) (75) (296) (296) (5,952)
Long-term bank loans 33,213 (38,495) (15,607) (1,973) (7,114) (4,890) (8,911)
Lease liabilities 23,639 (29,483) (8,340) (661) (4,164) (3,562) (12,756)
Total 101,014 (116,545) (65,895) (2,709) (11,574) (8,748) (27,619)
Carrying Contractual 2027 and
amount cash flows 2024 2025 2026 2027 thereafter
December 31, 2023
Trade payables 18,608 (18,608) (18,608) - - - -
Other payables 441 (441) (441) - - - -
Accrued expenses 13,079 (13,079) (13,079) - - - -
Customer deposits 42 (42) (42) - - - -
Interest bearing loans and
other borrowings:
Short-term bank loans 9,650 (9,650) (9,650) - - - -
Two-step loans 84 (85) (85) - - - -
Bonds and MTN 5,343 (10,163) (1,086) (2,574) (293) (293) (5,917)
Long-term bank loans 32,260 (38,386) (11,194) (8,090) (6,901) (4,569) (7,632)
Other borrowings 362 (370) (370) - - - -
Lease liabilities 20,425 (24,498) (6,614) (3,564) (3,073) (2,573) (8,674)
Other liabilities 141 (146) (4) (36) (36) (35) (35)
Total 100,435 (115,468) (61,173) (14,264) (10,303) (7,470) (22,258)
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.
108
Page 112
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
38. CAPITAL MANAGEMENT
The capital structure of the Group is as follows:
September 30, 2024 December 31, 2023
Amount Portion Amount Portion
Short-term debts 10,655 5.10% 9,650 4.73%
Long-term debts 62,484 29.92% 58,474 28.68%
Total debts 73,139 35.02% 68,124 33.41%
Equity attributable to owners
of the parent company 135,702 64.98% 135,744 66.59%
Total 208,841 100.00% 203,868 100.00%
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern in order to provide returns for stockholders and benefits to other stakeholders and to
maintain an optimum capital structure to minimize the cost of capital.
Periodically, the Group conducts debt valuation to assess possibilities of refinancing existing debts
with new ones with have more efficient cost that will lead to more optimized cost-of-debt. In case of
idle cash with limited investment opportunities, the Group will consider buying back its shares of stock
or paying dividend to its stockholders.
In addition to complying with loan covenants, the Group also maintains its capital structure at the level
it believes will not risk its credit rating and which is comparable with its competitors.
Debt-to-equity ratio (comparing net interest-bearing debt to total equity) is a ratio which is monitored
by management to evaluate the Group’s capital structure and review the effectiveness of the Group’s
debts. The Group monitors its debt levels to ensure the debt-to-equity ratio complies with or is below
the ratio set out in its contractual borrowings arrangements and that such ratio is comparable or better
than that of regional area entities in the telecommunications industry.
The Group’s debt-to-equity ratio as of September 30, 2024 and December 31, 2023, respectively, were
as follows:
September 30, 2024 December 31, 2023
Total interest-bearing debts 73,139 68,124
Less: cash and cash equivalents (24,540) (29,007)
Net debts 48,599 39,117
Total equity attributable to owners of parent
company 135,702 135,744
Net debt-to-equity ratio 35.81% 28.82%
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 period ended September 30, 2024 and December 31, 2023,
the Group has complied with externally imposed capital requirements.
109
Page 113
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024 and For the Nine Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
39. SUPPLEMENTAL CASH FLOWS INFORMATION
a. The non-cash investing activities for the nine months period ended September 30, 2024 and 2023
are as follows:
2024 2023
Acquisition of property and equipment:
Credited to trade payables 1,931 2,234
Borrowing cost capitalization 75 95
Addition of right of uses assets credited
to leases (Note 12) 7,986 7,853
Acquisition of intangible assets:
Credited to trade payables 149 391
b. The changes in liabilities arising from financing activities is as follows:
Non-cash changes
Foreign
exchange Other
January 1, 2024 Cash flows movement New leases Changes September 30, 2024
Short-term bank loans 9,650 1,005 - - - 10,655
Two step loans 84 (49) 6 - - 41
Bonds 5,343 250 - - (2) 5,591
Long-term bank loans 32,260 977 (2) - (22) 33,213
Other borrowings 362 (362) - - - -
Lease liabilities 20,425 (5,399) (4) 7,986 631 23,639
Total liabilities from
financing activities 68,124 (3,578) - 7,986 607 73,139
40. SUBSEQUENT EVENTS
1. On October 25, 2024 and October 29, 2024, Telkomsel paid the outstanding loan to Mandiri, BNI
and BSI amounting to Rp2,500 billion, Rp1,000 billion and Rp1,000 billion, respectively.
2. On October 25, 2024 and October 29, 2024, Telkomsel received loans from Mandiri and BSI
amounting to Rp1,500 billion and Rp1,000 billion, respectively.
110
Names mentioned 129 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Telekomunikasi Indonesia Tbk.
p.1 ×174
unresolved
org
Government of the Republic of Indonesia
p.9 ×2
unresolved
person
Imas Fatimah
p.9
unresolved
org
Ministry of Justice
p.9
unresolved
person
Ashoya Ratam
p.9 ×8
unresolved
org
Ministry of Communication and Information
p.10
unresolved
org
Directorate General of Post and Informatics
p.10
unresolved
org
Directorate General of Post
p.10
unresolved
org
Bank Indonesia
p.10 ×2
unresolved
org
Bank Indonesia License
p.10
unresolved
org
Indonesia Stock Exchange
p.12
unresolved
person
A. Partomuan Pohan
p.12
unresolved
org
PT Dayamitra
p.14
unresolved
org
Telekomunikasi Tbk.
p.14
unresolved
org
PT Multimedia
p.14
unresolved
org
PT Telkom Data
p.14
unresolved
org
PT Telkom Satelit
p.14
unresolved
org
PT Sigma Cipta
p.14
unresolved
org
PT Graha Sarana Duta
p.14
unresolved
org
PT Telkom Akses
p.14
unresolved
org
PT Telkom
p.14
unresolved
org
PT Napsindo
p.14
unresolved
org
Singapore Pte. Ltd.
p.15
unresolved
org
PT Infomedia
p.15
unresolved
org
PT Telkom Landmark
p.15
unresolved
org
PT Nuon Digital
p.15
unresolved
org
PT Persada Sokka
p.15
unresolved
org
PT Finnet Indonesia
p.15
unresolved
org
PT Telkomsel Mitra
p.15
unresolved
org
PT Telkomsel
p.16
unresolved
org
PT Swadharma
p.16
unresolved
org
PT Graha Yasa
p.16
unresolved
org
PT Nusantara Sukses
p.16
unresolved
org
PT Nutech Integrasi
p.16
unresolved
org
PT Collega Inti
p.16
unresolved
org
PT Graha Telkomsigma
p.16
unresolved
org
Pty. Ltd.
p.17
unresolved
org
PT Metra TV
p.17
unresolved
org
PT Metraplasa
p.17
unresolved
org
PT Pojok Celebes
p.17
unresolved
org
PT Bosnet Distribution
p.17
unresolved
person
Notarial Deed Aulia Taufani
p.17 ×3
unresolved
org
Singapore Telecom Mobile Pte. Ltd.
p.17
unresolved
org
PT Gametraco Tunggal
p.17
unresolved
person
Jimmy Tanal
p.18
unresolved
org
ST Dynamo ID Pte. Ltd.
p.18
unresolved
org
NeutraDC Singapore Pte. Ltd.
p.18
unresolved
person
Utiek Rochmuljati Abdurachman
p.18
unresolved
person
M.L.I.
p.18
unresolved
org
PT Algolab Solution
p.18
unresolved
org
Bapepam-LK
p.19 ×6
unresolved
org
Minister of Finance
p.21 ×2
unresolved
org
Shanghai Banking Corporation Ltd.
p.46
unresolved
org
PT Bank Pembangunan Daerah Jawa Barat
p.47
unresolved
org
Banten Tbk.
p.47
unresolved
org
Standard Chartered Bank Singapore Limited
p.48
unresolved
org
PT Henan Putihrai Asset Management
p.48
unresolved
org
PT Indonusa Telemedia
p.49
unresolved
org
PT Jalin Pembayaran Nusantara
p.52
unresolved
org
Bank Maspion
p.60 ×2
unresolved
org
PT. Bahana TCW Management Investment
p.63
unresolved
org
PT BRI Danareksa Sekuritas
p.63
unresolved
org
PT Bank ANZ Indonesia
p.65
unresolved
org
Bank ANZ
p.65
unresolved
org
New York Mellon Corporation
p.69 ×3
unresolved
org
Minister of Finance Regulation
p.78
unresolved
org
Directorate General of Taxes and Other Parties
p.78
unresolved
org
Dana Pensiun Telkom
p.83
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