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Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. and its subsidiaries Consolidated financial statements as of December 31, 2023 and for the year ended with independent auditor’s report
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PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2023 AND FOR THE YEAR THEN ENDED
WITH INDEPENDENT AUDITOR’S REPORT
TABLE OF CONTENTS
Page
Statement of the Board of Directors
Report of Independent Registered Public Accounting Firm
Consolidated Statement of Financial Position 1
Consolidated Statement of Profit or Loss and Other Comprehensive Income 2
Consolidated Statement of Changes in Equity 3
Consolidated Statement of Cash Flows 4
Notes to the Consolidated Financial Statements 5-113
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Indepe ndent A uditor’s Report
Report No. 0 02 6 8 / 2.1 0 3 2 / AU.1 / 0 6 / 0 6 8 7-2 / 1 /III/ 2 0 2 4
The Shareholders and the Boards of Commissioners and Direc tors
Pe rusaha an Pe rse roan (Perse ro) PT T ele komunikasi Indone sia Tbk
Opinion
We have audited the accompanying consolidated financial statements of Perusahaan Perseroan
(Persero) PT Telekomunikasi Indonesia Tbk. (the “Company”) and its subsidiaries (collectively
referr ed to as the “Group”), which comprise the consolida ted statement of financial position as of
December 3 1, 2 0 2 3 , and the consolidated statement of profit or loss and other comprehensive
income, consolida ted statement of changes in equity, and consolidated statement of cash flows
for the year then ended, and notes to the consolidated financial statements, including material
accounting policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position as of Decembe r 3 1 , 2 0 2 3 , and its consolida ted
financial performance and cash flows for the year then ended, in accordance with Indonesian
Financial Accounting Standards.
B asis for opinion
We conducted our audit in accordance with Standards on Auditing established by the Indonesian
Institute of Certified Public Accountants (“IICPA ”). Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements paragraph of our report. We are independent of the Group in accordance with the
ethical requir ements relevant to our audit of the consolidated financial statements in Indonesia,
and we have fulfilled our other ethical responsibilities in accordance with such requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
K e y audit ma t t ers
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the consolidated financial statements of the current period. Such key audit matters
wer e addressed in the context of our audit of the consolidated financial statements taken as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on such key
audit matters. For the key audit matter below, our description of how our audit addressed such
key audit matter is provided in such context.
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Indepe ndent A uditor’s Report (continued)
Report No. 0 02 6 8 / 2.1 0 3 2 / AU.1 / 0 6 / 0 6 8 7-2 / 1 /III/ 2 0 2 4 (continued)
K e y audit ma t t ers (continued)
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of
the Consolidated Financial Statements paragraph of our report, including in relation to the key
audit matter communicated below. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstateme nt of the
accompanying consolidated financial statements. The results of our audit procedures, including
the procedures performed to address the key audit matter below, provide the basis for our opinion
on the accompanying consolidated financial statements.
Evalua tion of telecommunication infrastructure estimated useful lives
Description of the key audit matter:
As of December 3 1, 2 0 2 3 , the balance of consolida ted telecommunication infrastructures
amounted to Rp1 5 8,51 6 billion which represents 5 5% of total consolidated assets. As discussed
in Notes 2 y and 1 1 to the accompanying consolidated financial statements, the Group reviews the
estimated useful lives of its property and equipment, including telecommunication
infrastructures, at least annually and such estimates are updated if expecta tions differ from
pre vious 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 property and
equipment.
Auditing the Group's estimated useful lives of telecommunication infrastructures is complex and
requires significant judgment because the determination of the estima ted useful lives considers a
number of factors, including strategic business plans, expected future technological
developments, and market behavior.
Audit response:
We obtained an understanding, and evaluated the design and tested the operating effectiveness,
of internal controls over the Group’s process of estimating the useful lives of its
telecommunication infrastructures. This includes, among others, testing of management’s
review control on checking the completeness and accuracy of the assets classification data a nd
assessing the appropriateness of the judgments regarding the most relevant data to be
considered in determining its use ful lives. We also tested management’s control on
benchmarking analysis, including the selection criteria, on the estimated useful lives of
telecommunication infrastructures.
To test whether the estimated useful lives of telecommunication infrastructures used by
management was reasonable, our audit procedures included, among others, obtaining an
understanding of management’s strategy rela ted to asset replacements and assessed the
reasonableness of assumptions by considering external sources, such as telecommunication
technology growth, changes in market demand, and current economic and regulatory trends. We
assessed whether the benchmarking analysis on the estimated useful lives of telecommunication
infrastructures used by management was complete and consistent with the selection criteria
through comparison with sample portfolio of public companies within the telecommunication
industry.
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Indepe ndent A uditor’s Report (continued)
Report No. 0 02 6 8 / 2.1 0 3 2 / AU.1 / 0 6 / 0 6 8 7-2 / 1 /III/ 2 0 2 4 (continued)
O t her information
Management is responsible for the other information. Other information comprises the
information included in the 2 0 2 3 Annual Report (“The Annual Report”) other than the
accompanying consolida ted financial statements and our independent auditor’s report thereon.
The Annual Report is expected to be made available to us after the date of this independent
auditor’s report.
Our opinion on the accompanying consolidated financial statements does not cover the Annual
Repor t, and accordingly, we do not express any form of assurance on the Annual Report.
In connection with our audit of the accompanying consolidated financial statements, our
responsibility is to read the Annual Report when it becomes available and, in doing so, consider
whether the Annual Report is materially inconsistent with the accompanying consolidated
financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein,
we are required to communicate the matter to those charged with governance and take
appropriate actions based on the applicable laws and regulations.
Responsibilities of manageme nt and those charged with gov ernance for the consolidat e d
financial st a t e ment s
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with Indonesian Financial Accounting Standards, and for such internal
control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern, and using the going concern basis of accounting, unless management either intends to
liquidate the Group or to cease its operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting
process.
A uditor’s responsibilities for the audit of the consolida t ed financial st a t e ments
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements taken as a whole are free from material misstatement, whether due to fraud or error,
and to issue an independent auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with
Standards on Auditing established by the IICPA will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements.
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Indepe ndent A uditor’s Report (continued)
Report No. 0 02 6 8 / 2.1 0 3 2 / AU.1 / 0 6 / 0 6 8 7-2 / 1 /III/ 2 0 2 4 (continued)
A uditor’s responsibilities for the audit of the consolida t ed financial st a t e ments (continued)
As part of an audit in accordance with Standards on Auditing established by the IICPA, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
x Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to such risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or override of internal control.
x Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
x Evalua te the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
x Conclude on the appropriateness of management's use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are requir ed
to draw attention in our independent auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusion is based on the audit evidence obtained up to the date of our independent
auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
x Evalua te the overall presentation, structure, and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner tha t achieves fair presenta tion.
x Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision, and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of December 31, 2023
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
Notes 2023 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents 3,32,37 29,007 31,947
Other current financial assets 4,32,37 1,661 1,349
Trade receivables - net allowance for expected
credit losses
Related parties 5,32,37 1,918 1,620
Third parties 5,37 8,749 7,014
Contract assets 6,32,37 2,704 2,457
Inventories 7 997 1,144
Contract cost 9 653 671
Claim for tax refund and prepaid taxes 27 1,928 1,844
Other current assets 8,32 7,996 7,011
Total Current Assets 55,613 55,057
NON-CURRENT ASSETS
Contract assets 6,32 26 34
Long-term investments 10 8,162 8,653
Contract cost 9 1,568 1,741
Property and equipment 11,32,35a 180,755 173,329
Right-of-use assets 12a 22,584 20,336
Intangible assets 14 8,731 8,302
Deferred tax assets 27f 4,170 4,117
Other non-current assets 13,27,32 5,433 3,623
Total Non-current Assets 231,429 220,135
TOTAL ASSETS 287,042 275,192
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables
Related parties 15,32,37 585 431
Third parties 15,37 18,023 18,026
Contract liabilities 17a,32 6,848 6,295
Other payables 37 441 463
Taxes payable 27c 4,525 5,372
Accrued expenses 16,32,37 13,079 15,445
Customer deposits 32 2,566 2,382
Short-term bank loans 18a,32,37 9,650 8,191
Current maturities of long-term
loans and other borrowings 18b,32,37 10,276 8,858
Current maturities of lease liabilities 12a,37 5,575 4,925
Total Current Liabilities 71,568 70,388
NON-CURRENT LIABILITIES
Deferred tax liabilities 27f 841 1,023
Contract liabilities 17b,32 2,591 1,561
Long service award provisions 31 1,153 1,031
Pension benefits and other post-employment
benefits obligations 30 11,414 10,272
Long-term loans and other borrowings 19,32,37 27,773 27,331
Lease liabilities 12a,37 14,850 13,736
Other liabilities 290 588
Total Non-current Liabilites 58,912 55,542
TOTAL LIABILITIES 130,480 125,930
EQUITY
Capital stock 21 4,953 4,953
Additional paid-in capital 2,711 2,711
Other equity 22 9,639 9,697
Retained earnings
Appropriated 29 15,337 15,337
Unappropriated 103,104 96,560
Net equity attributable to:
Owners of the parent company 135,744 129,258
Non-controlling interest 20 20,818 20,004
TOTAL EQUITY 156,562 149,262
TOTAL LIABILITIES AND EQUITY 287,042 275,192
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Year Ended December 31, 2023
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
Notes 2023 2022
REVENUES 23,32 149,216 147,306
COST AND EXPENSES
Operation, maintenance, and telecommunication
service expenses 25,32 (39,718) (38,184)
Depreciation and amortization expenses 11,12a,14 (32,663) (33,255)
Personnel expenses 24 (15,927) (14,907)
Interconnection expenses 32 (6,363) (5,440)
General and administrative expenses 26,32 (6,099) (5,854)
Marketing expenses 32 (3,530) (3,929)
Unrealized loss on changes in fair value of investments 10 (748) (6,438)
Other income - net 252 26
Gain (loss) on foreign exchange - net (36) 256
OPERATING PROFIT 44,384 39,581
Finance income 32 1,061 878
Finance cost 32 (4,652) (4,033)
Share of profit (loss) of long-term investment in associates 10 1 (87)
PROFIT BEFORE INCOME TAX 40,794 36,339
INCOME TAX (EXPENSE) BENEFIT 27d
Current (8,796) (9,259)
Deferred 210 600
(8,586) (8,659)
PROFIT FOR THE YEAR 32,208 27,680
OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income (loss) to be reclassified to profit
or loss in subsequent periods:
Foreign currency translation 22 (66) 299
Changes in fair value of investments 10 2 3
Share of other comprehensive income (loss) of
long-term investment in associates 10 (1) 1
Other comprehensive income (loss) not to be reclassified to profit
or loss in subsequent periods:
Defined benefit actuarial gain (loss) - net 30 (1,389) 1,464
Other comprehensive income (loss) - net (1,454) 1,767
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 30,754 29,447
Profit for the year attributable to:
Owners of the parent company 24,560 20,753
Non-controlling interests 20 7,648 6,927
32,208 27,680
Total comprehensive income for the year attributable to:
Owners of the parent company 23,083 22,468
Non-controlling interests 7,671 6,979
30,754 29,447
BASIC EARNINGS PER SHARE
(in full amount) 28
Net income per share 247.92 209.49
Net income per ADS (100 Series B shares per ADS) 24,792.50 20,949.46
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended December 31, 2023
(Amounts in the tables 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, 2022 4,953 2,711 9,395 15,337 89,250 121,646 23,753 145,399
Investment from non-controlling interests
for newly established indirect subsidiary - - - - - - 45 45
Changes in non-controlling interest - - - - - - 11 11
Cash dividend 29 - - - - (14,856) (14,856) (10,103) (24,959)
Repurchase of non-controlling interest shares 1e - - - - - - (681) (681)
Profit for the year 20 - - - - 20,753 20,753 6,927 27,680
Other comprehensive income - net - - 302 - 1,413 1,715 52 1,767
Balance, December 31, 2022 4,953 2,711 9,697 15,337 96,560 129,258 20,004 149,262
Balance, January 1, 2023 4,953 2,711 9,697 15,337 96,560 129,258 20,004 149,262
Differences in non-controlling interest ownership acquisition
transactions of subsidiary - - 6 - - 6 - 6
Additional capital contributions from non-controlling interests
of subsidiary 1e - - - - - - 2,955 2,955
Changes in non-controlling interest - - - - - - 22 22
Cash dividend 29 - - - - (16,603) (16,603) (9,803) (26,406)
Repurchase of non-controlling interest shares 1e - - - - - - (31) (31)
Profit for the year 20 - - - - 24,560 24,560 7,648 32,208
Other comprehensive income (loss) - net - - (64) - (1,413) (1,477) 23 (1,454)
Balance, December 31, 2023 4,953 2,711 9,639 15,337 103,104 135,744 20,818 156,562
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2023
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
Notes 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers and other operators 148,458 146,268
Cash receipts from interests 1,049 865
Cash receipts from tax refund 681 2,411
Cash payments for expenses (53,410) (45,559)
Cash payments to employees (16,116) (14,052)
Cash payments for corporate and final income taxes (10,746) (8,465)
Cash payments for finance costs (4,748) (4,064)
Cash payments for short-term and low-value lease assets 12a (3,770) (3,873)
Cash payments for value added taxes - net (1,410) (515)
Cash receipts from others - net 593 338
Net cash provided by operating activities 60,581 73,354
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from insurance claims 11 199 299
Proceeds from sale of property and equipment 11 100 526
Dividend received from associated company 14 17
Purchase of property and equipment 11,39 (33,601) (35,138)
Purchase of intangible assets 14,39 (2,817) (3,259)
Addition of long-term investment in financial instrument (340) (1,401)
Placement in other current financial assets - net (315) (854)
(Increase) decrease of other assets (149) 560
Net cash used in investing activities (36,909) (39,250)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans and other borrowings 18,19 38,834 35,958
Proceeds from issuance of new shares of subsidiaries 1e 2,961 45
Repayments of loans and other borrowings 18,19 (35,323) (44,304)
Cash dividend paid to the Company's stockholders 29 (16,603) (14,856)
Cash dividend paid to non-controlling interests of subsidiaries (9,803) (10,103)
Repayments of principal portion of lease liabilities 39 (6,602) (6,896)
Placement in shares buyback of subsidiary 1e (31) (681)
Net cash used in financing activities (26,567) (40,837)
NET DECREASE IN CASH AND CASH EQUIVALENTS (2,895) (6,733)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS (44) 370
ALLOWANCE FOR EXPECTED CREDIT LOSSES (1) (1)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 3 31,947 38,311
CASH AND CASH EQUIVALENTS AT END OF THE YEAR 3 29,007 31,947
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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”) (Note 21).
The Company was established based on Notarial Deed No. 128 dated September 24, 1991 of Imas
Fatimah, S.H. The deed of establishment was approved by the Ministry of Justice of the Republic
of Indonesia in its Decision Letter No. C2-6870.HT.01.01.Th.1991 dated November 19, 1991 and
was published in State Gazette No. 5 dated January 17, 1992, Supplement No. 210.
The Company's Articles of Association have been amended several times, 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 Articles of Association as stated in the Notary Deed of Ashoya Ratam, S.H.,
M.Kn. No. 37 dated June 22, 2022, the amendment has been received and approved by the
Minister of Law and Human Rights of the Republic of Indonesia (“MoLHR”) based on letter No.
AHU-0044650.AH.01.02. Year of 2022 dated June 29, 2022, concerning Acceptance of Notification
Approval of Amendment to the Articles of Association of the Limited Liability Company (Persero)
PT Telekomunikasi Indonesia Tbk.
In accordance with Article 3 of the Company’s Articles of Association, the scope of 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 capital in other companies, in line with and to
achieve the purposes and objectives of the Company.
ii. Supporting business:
(a) Providing payment transactions and money transfer services through telecommunications
and information network.
(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 repairs
and maintenance facilities.
(c) Collaborating with other parties in order to optimize the information and communication or
technology resources owned by other parties as services provider in the information,
communication and technology industry as to achieve the purposes and objectives of the
Company.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 as long as 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 comprises of several information, such as network development progress, service
quality standard achievement, number of customers, license payment, and universal service
contribution. Meanwhile, for internet telephone services for public purpose, internet interconnection
service, and internet access service, additional information is required, such as operational
performance, customer segmentation, traffic, and gross revenue.
Details of these licenses are as follows:
1 Grant date/latest
License License No. Type of service renewal date
License to operate internet 127/KEP/DJPPI/ Internet telephone March 30, 2016
telephone services for KOMINFO/3/2016 services for public
public purpose purpose
License to operate internet 2176/KEP/M.KOMINFO/ Internet service December 30, 2016
service provider 12/2016 provider
License to operate content 1040/KEP/M.KOMINFO/ Content service May 16, 2017
service provider 16/2017 provider
License for the 1004/KEP/M.KOMINFO/ Internet interconnection December 26, 2018
implementation of internet 2018 services
interconnection services
License to operate data 046/KEP/M.KOMINFO/ Data communication August 3, 2020
communication system 02/2020 system services
services
License to operate IPTV 022/KEP/M.KOMINFO/ Multimedia IPTV February 25, 2021
service provider 02/2021 service provider
License of electronics Bank Indonesia License Electronics money and July 1, 2021
money issuer and money 23/587/DKSP/Srt/B money transfer
transfer service
License to operate fixed 073/KEP/M.KOMINFO/ Fixed network long August 23, 2021
network long distance 02/2021 distance direct line
direct line
License to operate fixed 082/KEP/M.KOMINFO/ Fixed international October 8, 2021
international network 02/2021 network
License to operate fixed 094/KEP/M.KOMINFO/ Fixed closed network December 9, 2021
closed network 02/2021
License to operate circuit 095/KEP/M.KOMINFO/ Circuit switched-based December 9, 2021
switched-based local 02/2021 and packet
fixed line network switched-based
local fixed line
network
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 resolutions made at Annual General Meeting (“AGM”) of Stockholders of the Company
as covered by Notarial Deed of Ashoya Ratam, S.H., M.Kn., No. 35 dated June 23, 2023 and
No. 34, dated June 18, 2021, the composition of the Company’s Boards of Commissioners and
Directors as of December 31, 2023 and 2022, respectively, were as follows:
2023 2022
President Commissioner/ Bambang Permadi Bambang Permadi
Independent Commissioner Soemantri Brojonegoro Soemantri Brojonegoro
Independent Commissioner Wawan Iriawan Wawan Iriawan
Independent Commissioner Bono Daru Adji Bono Daru Adji
Independent Commissioner Abdi Negara Nurdin* Abdi Negara Nurdin
Commissioner Arya Mahendra Sinulingga Arya Mahendra Sinulingga
Commissioner Marcelino Rumambo Pandin Marcelino Rumambo Pandin
Commissioner Ismail Ismail
Commissioner Rizal Mallarangeng Rizal Mallarangeng
Commissioner Isa Rachmatarwata Isa Rachmatarwata
Commissioner Silmy Karim -
President Director Ririek Adriansyah Ririek Adriansyah
Director of Enterprise
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 and
Risk Management Heri Supriadi Heri Supriadi
Director of Network & IT Solution Herlan Wijanarko Herlan Wijanarko
Director of Strategic Portfolio Budi Setyawan Wijiaya Budi Setyawan Wijiaya
Director of Wholesale &
International Services Bogi Witjaksono Bogi Witjaksono
Director of Group
Business Development Honesti Basyir -
Director of Consumer Service - F.M. Venusiana R.
* Based on Notification Letter of VP Investor Relations No. Tel.03/LP 000/DCI-M0200000/2024 dated January 19, 2024, regarding Resignation of
the Company’s Independent Commissioners, Mr. Abdi Negara Nurdin was no longer effectively serve as an Independent Commissioner.
ii. Audit Committee, Corporate Secretary, and Internal Audit
The composition of the Company’s Audit Committee, Corporate Secretary, and Internal Audit
as of December 31, 2023 and 2022, respectively, were as follows:
2023 2022
Chairman Bono Daru Adji Bono Daru Adji
Member Bambang Permadi Bambang Permadi
Soemantri Brojonegoro Soemantri Brojonegoro
Member Wawan Iriawan Wawan Iriawan
Member Abdi Negara Nurdin* Abdi Negara Nurdin
Member Emmanuel Bambang Emmanuel Bambang
Suyitno Suyitno
Member Edy Sihotang Edy Sihotang
Corporate Secretary Anetta Hasan R. Achmad Faisal
Internal Audit Daru Mulyawan Daru Mulyawan
* Based on the Company’s Board of Commissioner Letter No. 04/KEP/DK/2024 dated February 6, 2024, regarding the Composition of the
Company's Audit Committee Membership, Mr. Abdi Negara was no longer effectively serve as an Audit Committee of the Company.
7
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 December 31, 2023 and 2022, the Company and its subsidiaries (collectively referred to
as “the Group”) had 20,605 employees and 20,951 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.
8
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 No. 38 dated April 19, 2013 of
Ashoya Ratam, S.H., M.Kn., the stockholders approved the changes to the Company’s plan on the
treasury stock acquired under phase III. At the AGM held on April 19, 2013, the minutes of which
were covered by Notarial Deed No. 38 of Ashoya Ratam, S.H., M.Kn., the stockholders approved
the Company’s 5-for-1 stock split for Series A Dwiwarna and Series B shares. Series A Dwiwarna
share with par value of Rp250 per share was split into 1 Series A Dwiwarna share with par value
of Rp50 per share and 4 Series B shares with par value of Rp50 per share. The stock split resulted
in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna and
79,999,999,999 Series B shares to 1 Series A Dwiwarna and 399,999,999,999 Series B shares.
The issued capital stock increased from 1 Series A Dwiwarna and 20,159,999,279 Series B shares
to 1 Series A Dwiwarna and 100,799,996,399 Series B shares. After the stock split, each ADS
represented 200 Series B shares. Effective from October 26, 2016, the Company change the ratio
of Depositary Receipt from 1 ADS representing 200 series B shares to become 1 ADS representing
100 series B shares. 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 No. 35 dated May 15, 2018, of
Ashoya Ratam, S.H., M.Kn., 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 December 31, 2023, all of the Company’s Series B shares are listed on the IDX and
39,734,520 ADS or equivalent to 3,973,451,980 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 a nominal
amount of Rp2,200 billion for Series A with a seven-year period, Rp2,100 billion for Series B with
a ten-year period, Rp1,200 billion for Series C with a fifteen-year period, and Rp1,500 billion for
Series D with a thirty-year period, which respectively are listed on the IDX (Note 19b).
9
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries
As of December 31, 2023 and 2022, the Company has consolidated the following directly and
indirectly owned subsidiaries (Notes 2b and 2d):
i. Direct subsidiaries:
Start year of Total assets before
operation Percentage of ownership* elimination
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Telekomunikasi Mobile 1995 70 65 112,966 100,991
Selular telecommunication,
(“Telkomsel”)** fixed broadband, network
service, and IPTV
PT Dayamitra Leasing of towers and 1995 72 72 57,010 56,072
Telekomunikasi Tbk. digital support services
(“Mitratel”) for mobile infrastructure
PT Multimedia Network 1998 100 100 18,457 18,710
Nusantara telecommunication
(“Metra”) services and multimedia
PT Telekomunikasi International 1995 100 100 15,175 13,949
Indonesia telecommunication
International and information
(“Telin”) services
PT Telkom Satelit Telecommunication - 1996 100 100 7,938 6,470
Indonesia provides satellite
(“Telkomsat”) communication
system and its
related services
PT Sigma Cipta Consultation service 1988 100 100 7,616 8,522
Caraka of hardware
(“Sigma”) computer software
PT Graha Sarana Duta Developer, trade, service 1982 100 100 5,614 5,865
("GSD") and transportation
PT Telkom Akses Construction, service 2013 100 100 4,777 5,308
(“Telkom Akses”) and trade in the field of
telecommunication
PT Telkom Data Data center 1996 100 100 4,059 3,202
Ekosistem
(“TDE”)
PT Metra-Net Multimedia portal service 2009 100 100 1,654 1,731
(“Metra-Net”)
PT Infrastruktur Construction, service 2014 100 100 1,261 1,360
Telekomunikasi and trading in
Indonesia the field of
(“Telkom Infra”) telecommunication
PT PINS Indonesia Telecommunication 1995 100 100 775 797
(“PINS”) construction and
services
PT Napsindo Telecommunication - 1999; ceased 60 60 5 5
Primatel provides Network operations on
Internasional Access Point ("NAP"), January 13,
(“Napsindo”) Voice Over Data ("VOD") 2006
and other related services
PT Telkom Network not 100 - 0 -
Infrastruktur telecommunication yet operating***
Indonesia services and information
(“Infraco”)
*Percentage of ownership amounting to 99.99% is presented with rounding of 100%.
** Refer to Note 1e for details of the Company's ownership changes in Telkomsel.
*** Commencement of commercial operation starts in 2024.
All direct subsidiaries are domiciled in Indonesia.
10
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries:
Start year of Total assets before
operation Percentage of ownership* elimination
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Metra Digital Trading, information 2013 100 100 8,556 9,019
Investama and multimedia
(“MDI”) technology,
entertainment
and investment
service
Telekomunikasi Investment 2010 100 100 3,842 2,981
Indonesia holding and
International Ltd. telecommunication
("Telin Hong Kong"), services
domiciled in
Hong kong
Telekomunikasi Telecommunication 2008 100 100 3,499 3,678
Indonesia and related
International Pte. Ltd. services
("Telin Singapore"),
domiciled in
Singapore
PT Infomedia Information provider 1984 100 100 2,248 2,268
Nusantara services, contact
(“Infomedia”) center and content
directory
PT Telkom Landmark Property development 2012 55 55 1,986 2,100
Tower and management
(“TLT”) services
PT Finnet Indonesia Information 2006 60 60 1,761 1,248
(“Finnet”) technology
services
PT Persada Sokka Leasing of towers 2008 100 100 1,622 1,401
Tama and other
("PST") telecommunication
services
PT Nuon Digital Digital content 2010 100 100 1,194 1,199
Indonesia exchange hub
(“Nuon”) services
Telekomunikasi Telecommunication 2012 100 100 1,082 836
Indonesia networks, mobile,
International (TL) S.A. internet, and
("Telkomcel"), data services
domiciled in
Timor Leste
PT Telkomsel Mitra Business 2019 100 100 1,030 945
Inovasi management
(“TMI”) consulting and
investment
services
PT Metra Digital Telecommunication 2013 100 100 993 986
Media information digital
(“MD Media”) media provider
PT Telkomsel Business management 2021 100 100 777 807
Ekosistem Digital consulting services
("TED") and investment
and/or investment
in other companies
*Percentage of ownership amounting to 99.99% is presented with rounding of 100%.
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
11
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries (continued):
Start year of Total assets before
operation Percentage of ownership* elimination
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Administrasi Health insurance 2003 100 100 757 632
Medika administration
(“Admedika”) services
PT Teknologi Data Telecommunication 2013 60 100 606 7
Infrastruktur service and
(“TDI”) data center
TS Global Satellite services 1996 70 70 420 566
Network Sdn. Bhd.
(“TSGN”),
domiciled in
Malaysia
PT Swadharma Cash replenishment 2001 51 51 397 458
Sarana Informatika services and
(“SSI”) ATM maintenance
PT Digital Aplikasi Communication 2014 100 100 341 384
Solusi system services
("Digiserve")
PT Graha Telkomsigma Management and 1999 100 100 333 190
("GTS") consultation
services
PT Nusantara Sukses Service and trading 2014 100 100 292 301
Investasi
(“NSI”)
PT Graha Yasa Tourism and hospitality 2012 51 51 290 285
Selaras services
(”GYS”)
PT Nutech Integrasi System integrator 2001 60 60 227 273
(“Nutech”) service
Telekomunikasi Telecommunication 2014 100 100 212 294
Indonesia and information
International (USA) Inc. services
(“Telin USA”),
domiciled in USA
PT Collega Inti Trading and services 2001 70 70 191 173
Pratama
("CIP")
PT Media Nusantara Consultation services 2012 55 55 136 116
Data Global of hardware, software,
("MNDG") data center, and
internet exchange
Telekomunikasi Telecommunication 2013 70 70 125 125
Indonesia International and information
(Malaysia) Sdn. Bhd. services
(”Telin Malaysia”),
domiciled in
Malaysia
Telekomunikasi Telecommunication 2013 100 100 67 33
Indonesia and information
International services
(Australia) Pty. Ltd.
(“Telin Australia”),
domiciled in
Australia
PT Metra TV Subscription 2013 100 100 50 34
(“Metra TV”) broadcasting
services
*Percentage of ownership amounting to 99.99% is presented with rounding of 100%
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
12
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries (continued):
Start year of Total assets before
operation Percentage of ownership* elimination
Subsidiary Nature of business commencement 2023 2022 2023 2022
PT Pojok Celebes Travel agent services 2008 100 100 44 33
Mandiri
("PCM")
PT Bosnet Distribution Trade and consultation 2012 60 60 40 36
Indonesia fast moving
(“BDI”) consumer goods
distribution solution
provider
PT Metraplasa Network and 2014; ceased 60 60 30 30
(“Metraplasa”) e-commerce operations on
services October, 2020
NeutraDC Data center not 100 - - -
Singapore Pte. Ltd. yet operating***
(“NeutraDC
Singapore”)
domiciled in
Singapore
*Percentage of ownership amounting to 99.99% is presented with rounding of 100%
***Commencement of commercial operation starts in 2024.
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
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 to
be transferred is Rp58,250 billion. 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 IDR 2,713 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
(a) On June 2, 2022, Mitratel announced to buyback its shares with a maximum amount of
Rp1,000 billion. The buyback period of Mitratel's shares is for three months starting from
June 2, 2022 to September 2, 2022. Mitratel has exercised buyback of 885,200,000 of its
shares or equivalent to Rp681 billion. On March 6, 2023, Mitratel announced another share
buyback of a maximum of Rp1,500 billion. The buyback period for Mitratel's shares starts
on April 14, 2023. As of December 31, 2023 Mitratel has conducted a share buyback
amounting to 47,700,000 shares or equivalent to Rp31 billion.
(b) On March 1, 2023, Mitratel and PT Indosat Tbk. (“Indosat”) signed a Seller Closing
Certificate for the acquisition of 997 Indosat’s telecommunications towers amounting to
Rp1,648 billion. Mitratel and Indosat also agreed to lease back 983 slots of Indosat’s
telecommunications towers for 10 years lease period. In addition, as part of the agreement,
Indosat has also agreed to deliver order for 3,500 collocations for next 3 years compensate
Mitratel for amounted Rp473 billion as commitment and as of December 31, 2023, Mitratel
has paid amounted Rp406 billion.
(c) On November 24, 2023, Mitratel acquired 803 telecommunication towers belonging to
PT Gametraco Tunggal for Rp1,753 billion.
13
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
e. Other important informations (continued)
iii. Sigma
Based on Notarial Deed No. 120 dated April 19, 2022 of Jimmy Tanal, S.H., M.Kn.,
the Company acquired Sigma shares from Metra, resulted in 56.39% ownership by the
Company and diluting Metra’s ownership into 43.61%.
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,
with 1 share and the par value of SGD 1.
v. Infraco
Based on Notarial Deed No. 26 dated December 8, 2023 of Aulia Taufani, S.H, the Company
established PT Telkom Infrastruktur Indonesia ("Infraco”).
vi. TDI
Based on Notarial Deed of Jimmy Tanal, SH., MKn No. 201 dated October 25, 2023, the
shareholders approved the issuance of 4,825,932 new shares with nominal value per share of
Rp 104,438, of which PT Telkom Data Ekosistem 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. This additional
capital contribution diluting TDE's ownership into 60.0% and the dilution effect was recorded as
differences in non-controlling interest ownership acquisition transaction of subsidiary amounted
to Rp6 billion.
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 March 22, 2024.
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 consolidated financial statements
The consolidated financial statements, except for the consolidated statements of cash flows, are
prepared on the accrual basis. The measurement basis used is historical cost, except for certain
accounts which are measured using the basis mentioned in the relevant notes herein.
The consolidated statements of cash flows are prepared using the direct method and present the
changes in cash and cash equivalents from operating, investing, and financing activities.
The reporting currency used in the consolidated financial statements is the Indonesian Rupiah
(“Rp”) which is also the functional currency of each entity in the Group except for certain
subsidiaries which have the functional currency of the United States Dollar, Australian Dollar and
Malaysian Ringgit. Figures in the consolidated financial statements which still contain values but
below Rp1 billion and US$1 million, are presented with zeros.
14
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)
a. Basis of preparation of consolidated financial statements (continued)
New accounting standards
On January 1, 2023, the Group adopted the new and revised statement of financial accounting
standards and interpretations of financial accounting standards effective from that date.
Adjustments to the Group's accounting policies have been made as required, in accordance with
the transitional provisions of the respective standards and interpretations. The adoption of the new
and revised standards and interpretations did not result in major changes to the Group's accounting
policies and had no material effect on the amounts reported for the current or prior financial year:
i. Amendment PSAK 1: Presentation of Financial Statements
ii. Amendment PSAK 16: Fixed Assets
iii. Amendment PSAK 25: Accounting Policies, Changes in Accounting Estimates, and Errors
iv. Amendment to PSAK 46: Income Tax
Accounting standards issued but not yet effective
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 Pubic 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.
Effective January 1, 2024
i. Amendment PSAK 1: Presentation of Financial Statements
This amendment clarifies long-term liabilities with covenant and the classification of liabilities as
short-term liabilities or long-term liabilities
ii. Amendment PSAK 73: Leases
This amendment regulates lease liabilities in sale and leaseback transactions.
iii. Amendment PSAK 2 Statements of Cash Flow and PSAK 60 Financial Instruments: Disclosures
This amendment explains supplier financing agreements.
Effective January 1, 2025
i. Amendment PSAK 10: Effect of Changes in Foreign Exchange Rate
This amendment clarifies the lack of interchangeability.
15
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
b. Principles of consolidation
The consolidated financial statements consist of the financial statements of the Company and
the subsidiaries over which it has control. Control is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those
returns through its power over the investee. Specifically, the Group controls an investee if and only
if the Group has the power over the investee, exposure or rights, to variable returns from its
involvement with the investee, and the ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights results in control. To support this
presumption and when the Group has less than a majority of the voting or similar rights of an
investee, the Group considers all relevant facts and circumstances in assessing whether it has
power over an investee, including:
i. The contractual arrangement with the other vote holders of the investee,
ii. Rights arising from other contractual arrangements, and
iii. The Group's voting rights and potential voting rights.
The Group re-assesses whether it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control. Consolidation of a subsidiary
begins when the Group obtains control over the subsidiary and ceases when the Group loses
control over the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated statements of profit or loss and other
comprehensive income from the date the Group gains financial control until the date the Group
ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the
equity holders of the Company and to the non-controlling interests, even if this results in the non-
controlling interests having a deficit balance.
All intra-Group assets and liabilities, equity, revenue and expenses and cash flow relating to
transactions within Group are fully eliminated on consolidation.
In case of loss of control over a subsidiary, the Group:
i. derecognizes the assets (including goodwill) and liabilities of the subsidiary at the carrying
amounts on the date when it loses control;
ii. derecognizes the carrying amounts of any non-controlling interests of its former subsidiary on
the date when it loses control;
iii. recognizes the fair value of the consideration received (if any) from the transaction, events, or
condition that caused the loss of control;
iv. recognizes the fair value of any investment retained in the subsidiary at fair value on the date
of loss of control; and
v. recognizes any surplus or deficit in profit or loss that is attributable to the Group.
16
Page 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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 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.
17
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 38 (Revised 2012), “Common Control Business Combination”, the transfer of
assets, liabilities, shares or other ownership instruments among the companies under common
control would not result in a gain or loss for the Company or individual entity in the same group.
Since the restructuring transaction between entities under common control does not result in a
change of the economic substance of the ownership of assets, liabilities, shares, or other
instruments of ownership, which are exchanged, assets or liabilities transferred are recorded at
book value using the pooling-of-interests method.
In applying the pooling-of-interests method, the components of the financial statements for the
period during the restructuring occurred must be presented in such a manner as if the restructuring
has occurred since the beginning of the earliest period presented. The excess of consideration paid
or received over the carrying value of interest acquired, net of income tax, is directly recognized to
equity and presented as “Additional Paid-in Capital” under the equity section of the consolidated
statement of financial position.
At the initial application of PSAK 38 (Revised 2012), all balances of the Difference In Value of
Restructuring Transactions of Entities under Common Control was reclassified to “Additional Paid-
in Capital” in the consolidated statement of financial position.
e. Cash and cash equivalents
Cash and short-term deposits in the statement of financial position comprise cash in banks and on
hand and short-term highly liquid deposits with a maturity of three months or less, that are readily
convertible to a known amount of cash and subject to an insignificant risk of changes in value.
For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are
considered an integral part of the Group’s cash management.
Time deposits with maturities of more than three months but not more than one year are
presented as part of “Other current financial assets” in the consolidated statements of financial
position (Note 2q).
18
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 each 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.
19
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 can not be used without the availability of certain computer software.
In such circumstance, the computer software is recorded as part of the computer hardware. If the
computer software is independent from its computer hardware, it is recorded as part of intangible
assets.
20
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 the related property and equipment account.
Property under construction is stated at cost less impairment (if any), until the construction is
completed, at which time it is reclassified to the property and equipment account to which it relates.
During the construction period until the property is ready for its intended use or sale, borrowing
costs, which include interest expense and foreign currency exchange differences incurred on loans
obtained to finance the construction of the asset, as long as it meets the definition of a qualifying
asset are, capitalized in proportion to the average amount of accumulated expenditures during the
period. Capitalization of borrowing cost ceases when the construction is completed, and the asset
is ready for its intended use or sale.
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 under PSAK 73, which
among other things:
• the use of a single discount rate to a portfolio of leases with reasonably similar characteristics;
• the accounting for operating leases with a remaining lease term of less than 12 months as
short-term leases;
• the exclusion of initial direct costs for the measurement of the right-of-use assets (“ROU”) as
short-term leases;
• the use of hindsight in determining the lease term where the contract contains options to
extend or terminate the lease;
• not to separate non-lease components from lease components, and instead, account for both
as a single lease component; and
• not to recognize a lease liability and a ROU asset for leases where the underlying assets are
low-value assets (i.e. underlying assets with a maximum value of US$5,000 or Rp50 million
when it is new).
The Group applies the definition of a lease and related guidance set out in PSAK 73 to all lease
contracts.
i. The Group as lessee
The Group applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. The Group recognizes lease liabilities to
make lease payments and ROU assets representing the right to use the underlying assets.
The Group recognizes ROU assets at the commencement date of the lease. ROU assets are
measured at cost, less any accumulated amortization and impairment losses, and adjusted for
any remeasurement of lease liabilities. The cost of ROU assets includes the amount of lease
liabilities recognized, initial direct costs incurred, restoration costs and lease payments made
at or before the commencement date less any lease incentives received.
21
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 leased asset transfers to the Group at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation is calculated using the estimated
useful life of the asset. The ROU assets are subject to impairment in accordance with
PSAK 48: Impairment of Assets.
Lease liabilities
At the commencement date of the lease, the Group recognizes lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments include
fixed payments (including in substance fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a rate, and amounts expected to be paid
under residual value guarantees. The lease payments also include the exercise price of
a purchase option reasonably certain to be exercised by the Group and payments of penalties
for terminating the lease, if the lease term reflects the Group exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognized as expenses
in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing
rate at the lease commencement date because the interest rate implicit in the lease is not readily
determinable. After the commencement date, the amount of lease liabilities is increased to
reflect the accretion of interest and reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease
term, a change in the lease payments, or a change in the assessment of an option to purchase
the underlying asset.
Short-term leases with a duration of less than 12 months and low-value assets leases, as well
as those lease elements, partially or totally not complying with the principles of recognition
defined by PSAK 73 will be treated similarly to operating leases. The Group will recognize those
lease payments on a straight-line basis over the lease term in the consolidated statements of
profit or loss and other comprehensive income.
22
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 73, a lessor continues to classify leases as either finance leases or operating
leases and account for those two types of leases differently. Leases in which the Group transfers
substantially all the risks and rewards incidental to ownership of an asset are classified as
finance leases, otherwise it will be classified as operating leases. Lease classification is made
at the inception date and is reassessed only if there is a lease modification.
At the commencement date, the Group recognizes assets held under a finance lease at an
amount equal to the net investment in the lease and present it as finance lease receivable. The
net investment in the lease includes fixed payments (including in substance fixed payments)
less any lease incentives receivable, variable lease payments that depend on an index or a rate,
and residual value guarantees provided to the lessor by the lessee. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the lessee
and payments of penalties for terminating the lease, if the lease term reflects the Group
exercising the option to terminate.
As required by PSAK 71, an allowance for expected credit loss has been recognized on the
finance lease receivables and presented under “Other receivables”.
Rental income arising from operating leases is accounted for on a straight-line basis over the
lease terms and is included in revenue in the consolidated statement of profit or loss and other
comprehensive income due to its operating nature. Initial direct costs incurred in negotiating and
arranging an operating lease are added to the carrying amount of the underlying assets and
recognized over the lease term on the same basis as rental income. Contingent rents are
recognized as revenue in the period in which they are earned.
If an arrangement contains lease and non-lease components, the Group applies PSAK 72
Revenue from Contracts with Customers to allocate the consideration in the contract. Revenue
arising from operating lease is recorded as Revenue from lessor transactions (Note 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.
23
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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):
2023 2022
Buy Sell Buy Sell
United States Dollar (“US$”) 1 15,396 15,401 15,567 15,571
Australian Dollar (“AU$”) 1 10,499 10,505 10,583 10,589
Singapore Dollar (“SGD”) 1 11,666 11,673 11,614 11,622
New Taiwan Dollar (“TWD”) 1 501.32 501.53 508.15 508.47
Euro (“EUR”) 1 17,025 17,036 16,623 16,635
Japanese Yen ("JPY") 1 108.78 108.82 118.12 118.17
Malaysian Ringgit ("MYR") 1 3,350 3,359 3,529 3,539
Hong Kong Dollar (“HKD”) 1 1,971 1,971 1,996 1,997
Myanmar Kyart (“MMK”) 1 7.31 7.35 7.39 7.44
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).
24
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 72 establishes a comprehensive framework to determine how, when, and how much revenue
is to be recognized. The standard provides a single principles-based five-step model for the
determination and recognition of revenue to be applied to all contracts with customers. The
standard also provides specific guidance requiring certain types of costs to obtain and/or fulfil a
contract to be capitalized and amortized on a systematic basis that is consistent with the transfer
to the customer of the goods or services to which the capitalized cost relates.
Below is the summary of the Group’s revenue recognition accounting policy for each revenue
stream:
i. Mobile
Revenue from mobile primarily comprises of revenue from cellular service which among others:
telephone service, interconnection service, internet and data service and Short Messaging
Services (“SMS”) service. Those services are offered on postpaid or prepaid basis.
For prepaid services, initial package sales (also known as SIM cards and initial charging
vouchers) and top-up vouchers are initially recognized as contract liabilities. The Group
recognizes contract assets for the services from postpaid customers that have not been billed.
All mobile services revenues are recognized based on output method, either per actual usage
or allowance unit used (if services sold in plan basis), because the customer simultaneously
receives and consumes the benefits provided by the Group.
For services sold in bundled plan, total consideration is allocated to performance obligations
based on stand-alone selling price for each of product and/or service. The Group estimates the
stand-alone selling price using the price enacted if the services are sold on a stand-alone basis.
Most bundled plans sold by the Group only include services which are generally satisfied over
the same period of time. Therefore, the revenue recognition pattern is generally not impacted
by the allocation.
The consideration that is received is allocated between the telecommunication services sold
and the points issued, with the consideration allocated to points that are equal to its fair value.
The fair value of points issued is deferred and recognized as revenue when the points are
redeemed, expired, or when the program is terminated.
ii. Consumer
Revenue from consumer primarily comprises of revenue from fixed telephone and IndiHome
services. Revenues from fixed telephone service are derived from customer who subscribes to
fixed telephone service only, while revenues from IndiHome service are derived from customer
who subscribes to internet services or to bundled package with combination of consumer
service (i.e. telephone, internet and data, and paid TV). Those services are offered on a
postpaid basis and billed in the following month. 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, customer can decide to stop subscribing in
accordance with the applicable terms and conditions without incurring any penalties. In
accordance with PSAK 72, 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.
25
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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.
26
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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/fulfilling contract with customers
The incremental costs of obtaining/fulfilling contracts with customers, which principally are
comprised of sales commissions and contract fulfilment costs, are initially recognized on the
consolidated statements of financial position as contract costs. These costs are subsequently
amortized on a systematic basis that is consistent with the period and pattern of transfer to the
customer of the related products or services. Costs that do not qualify as costs of obtaining/fulfilling
contract with customers are expensed as incurred or in accordance with other relevant standards.
At the end of each reporting year, the Group evaluates whether there is an indication that
capitalized contract costs may be impaired. An impairment exists when the carrying amount of the
contract costs exceeds the amount expected to be received in exchange for goods and services.
When impairment exists, an impairment loss is recognized in profit or loss.
27
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 plans are calculated at the present value of estimated future benefits that the
employees have earned in return for their service in the current and prior periods less the fair
value of plan assets. The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rates of Government bonds that
are denominated in the currencies in which the benefits will be paid and that have terms to
maturity approximating the terms of the related retirement benefit obligation. Government bonds
are used as there are no deep markets for high quality corporate bonds.
Plan assets are assets owned by defined benefit pension plan and post-retirement health care
benefits plan as well as qualifying insurance policy. The assets are measured at fair value as of
reporting dates. The fair value of qualifying insurance policy is deemed to be the present value
of the related obligations (subject to any reduction required if the amounts receivable under the
insurance policies are not recoverable in full).
Remeasurement, comprising of actuarial gain and losses, the effect of the asset ceiling
(excluding amounts included in net interest on the net defined benefit liability (asset)) and the
return on plan assets (excluding amounts included in net interest on the net defined benefit
liability (asset)) are recognized immediately in the consolidated statements of financial position
with a corresponding debit or credit to retained earnings through OCI in the period in which they
occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognized immediately in profit or loss on the earlier of:
(a) the date of plan amendement or curtailment ; and
(b) the date that the Group recognized restructuring-related costs.
28
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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)
Net interest is calculated by applying the discount rate to the net defined benefit liabilities or
assets.
Gains or losses on curtailment are recognized when there is a commitment to make a material
reduction in the number of employees covered by a plan or when there is an amendment of
defined benefit plan terms such as that a material element of future services to be provided by
current employees will no longer qualify for benefits, or will qualify only for reduced benefits.
Gains or losses on settlement are recognized when there is a transaction that eliminates all
further legal or constructive obligation for part or all of the benefits provided under a defined
benefit plan (other than the payment of benefit in accordance with the program and included in
the actuarial assumptions).
For defined contribution plans, the regular contributions constitute net periodic costs for the
period in which they are due and, as such, are included in “personnel expenses” as they become
payable.
In April 2022, the Institute of Indonesia Chartered Accountants’ Accounting Standard Board
issued a press release regarding attribution of benefits to periods of service in accordance with
PSAK 24: Imbalan Kerja which was adopted from IAS 19 Employee Benefits. The press release
conveyed the information that the fact pattern of the pension program based on the Labor Law
currently enacted in Indonesia is similar to those responded and concluded in the IFRS
Interpretation Committee (“IFRIC”) Agenda Decision Attributing Benefit to Periods of Service
IAS 19. The Group has adopted the said press release and accordingly changed its accounting
policy regarding attribution of benefits to periods of service previously applied.
In prior years, the Group attributed benefits under the defined benefit plan’s benefit formula to
periods of service from the date when employees provide their services until their retirement
age. The Group changed the policy for attributing benefits under the plan to the date when
employee service first leads to benefits under the plan until the date when further employee
service will lead to no material amount of further benefits under the plan.
29
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 an expense and included in the
consolidated statements of profit or loss and other comprehensive income, except to the extent
that the income tax arises from a transaction or event which is recognized directly in equity, in
which case, the income tax is recognized directly in equity.
Current income tax assets and liabilities are measured at the amounts expected to be recovered
or paid by using the tax rates and tax laws that have been enacted or substantively enacted at
each reporting date. Management periodically evaluates positions taken in Annual Tax Returns
("Surat Pemberitahuan Tahunan"/"SPT Tahunan") with respect to situations in which applicable tax
regulation is subject to interpretation. Where appropriate, management establishes provisions
based on the amounts expected to be paid to the Tax Authorities.
Tax assessment
Amendment to taxation obligation is recorded when an assessment letter (“Surat Ketetapan Pajak”
or “SKP”) is received or, if appealed against, when the results of the appeal have been determined.
The additional taxes and penalty imposed through an SKP are recognized as revenue or expense
in the current year profit or loss, unless objection/appeal is taken. The additional taxes and penalty
imposed through the SKP are deferred as long as they meet the asset recognition criteria.
Deferred tax
The Group recognizes deferred tax assets and liabilities for temporary differences between the
financial and tax bases of assets and liabilities at each reporting date. The Group also recognizes
deferred tax assets resulting from the recognition of future tax benefits, such as the benefit of tax
losses carried forward to the extent their future realization is probable. Deferred tax assets and
liabilities are measured using enacted or substantively enacted tax rates and tax laws at each
reporting date which are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced if it is
no longer probable that sufficient taxable profit will be available to compensate part or all of the
benefits of deferred tax assets. Unrecognized deferred tax assets are re-assessed at each
reporting date and recognized if it is probable that future taxable profits will be available for
recovery. Tax deductions arising from the reversal of deferred tax assets are excluded from
estimates of future taxable income.
Deferred tax transactions which are recognized outside profit or loss. Therefore, deferred taxes on
these transactions are recognized either in other comprehensive income or recognized directly in
equity.
Deferred tax assets and liabilities are offset in the consolidated statements of financial position, if
and only if it has a legally enforceable right to set off current tax assets and liabilities and the
deferred tax assets and liabilities relate to income taxes levied by the same Tax Authority on either
the same taxable entity or different taxable entities which intend either to settle current tax liabilities
and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each
future period in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
30
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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
ISAK 34: Uncertainty Over Income Tax Treatments stated that the recognition and measurement
of tax assets and liabilities that contain uncertainty over income tax are determined by considering
whether to be treated separately or together, the assumptions used in the examination of tax
treatments by the Tax Authorities, consideration the probability that the Tax Authorities will accept
uncertain tax treatment and re-consideration or estimation if there is a change in facts and
circumstances.
If the acceptance of the tax treatment by the Tax Authorities is probable, the measurement is in
line with income tax fillings. If the acceptance of the tax treatment by the Tax Authorities is not
probable, the Group measures its tax balances using the method that provides the better predict
of resolution (i.e. most likely amount or expected value).
Final tax
Indonesian tax regulations impose final tax on several types of transactions based on the gross
value of the transaction. Therefore, final tax which is charged based on such transaction remains
subject to tax even though the tax payer incurred a loss on the transaction.
Final tax on construction services and lease are presented as part of “Other income - net”.
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 of for
which the Group has applied the practical expedient, the Group initially measures a financial
asset at its fair value plus, in the case of a financial asset not at FVTPL, transactions costs.
Trade receivables that do not contain a significant financing component or which the Group
has applied the practical expedient are measured at the transaction price in determined under
PSAK 72.
31
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 (“SPPI”) test and is performed at instrument level.
The Group’s business model for managing financial assets refers to how it manages its
financial assets in order to generate cash flows. The business model determines whether cash
flows will result from collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace (regular way trades) are recognized
on the trade date, i.e., the date that the Group commits to buy or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
(a) Financial assets at amortized cost (debt instruments)
The Group measures financial assets at amortized cost if both of the following conditions
are met:
• The financial asset is held within a business model with the objective to hold financial
assets in order to collect contractual cash flows; and
• The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest
rate (“EIR”) method and are subject to impairment. Gains and losses are recognized in
profit or loss when the asset is derecognized, modified or impaired. The Group’s financial
assets at amortized cost consist of cash and cash equivalents, other current financial
assets, trade and other receivables, and other non-current assets.
(b) Financial assets at FVTOCI with recycling of cumulative gains and losses (debt
instruments)
The Group measures debt instruments at FVTOCI if both of the following conditions are
met:
• The financial asset is held within a business model with the objective of both holding
to collect contractual cash flows and selling; and
• The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
For debt instruments at FVTOCI, interest income, foreign exchange revaluation, and
impairment losses or reversals are recognized in the statement of profit or loss and
computed in the same manner as for financial assets measured at amortized cost. The
remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative
fair value change recognized in OCI is recycled to profit or loss.
The Group has no debt instruments classified at FVTOCI with recycling of cumulative
gains and losses as of December 31, 2023 and 2022.
32
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 71 and are not held for trading. The classification is determined on an instrument-
by-instrument basis. Gains and losses on these financial assets are never recycled to
profit or loss. Dividends are recognized as other income in the statement of profit or loss
when the right of payment has been established, except when the Group benefits from
such proceeds as a recovery of part of the cost of the financial asset, in which case, such
gains are recorded in OCI. Equity instruments designated at FVTOCI are not subject to
impairment assessment. The Group’s financial assets at this category consists of long-
term investment in financial instruments.
(d) Financial assets at FVTPL
Financial assets at FVTPL include financial assets held for trading, financial assets
designated upon initial recognition at FVTPL, or financial assets mandatorily required to
be measured at fair value. Financial assets are classified as held for trading if they are
acquired for the purpose of selling or repurchasing in the near term. Derivatives, including
separated embedded derivatives, are also classified as held for trading unless they are
designated as effective hedging instruments. Financial assets with cash flows that are not
solely payments of principal and interest (“SPPI”) are classified and measured at FVTPL,
irrespective of the business model. Notwithstanding the criteria for debt instruments to be
classified at amortized cost or at FVTOCI, as described above, debt instruments may be
designated at FVTPL on initial recognition if doing so eliminates, or significantly reduces,
an accounting mismatch.
Financial assets at FVTPL are carried in the statement of financial position at fair value
with net changes in fair value recognized in the statement of profit or loss. The Group’s
financial assets at FVTPL consists of other long-term investment in financial instruments
and other current financial assets.
Expected credit losses (“ECL”)
The Group recognizes an allowance for ECL for all debt instruments not held at FVTPL. ECL
are based on the difference between the contractual cash flows due in accordance with the
contract and all the cash flows that the Group expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash
flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
33
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 a provision model that is based on its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and the economic environment.
The Group considers a financial asset in default when contractual payments are 90 days past
due. However, in certain cases, the Group may also consider a financial asset to be in default
when internal or external information indicates that the Group is unlikely to receive the
outstanding contractual amounts in full before taking into account any credit enhancements
held by the Group. Trade receivables are written-off when there is low possibility of recovering
the contractual cash flow, after all collection efforts have been done and have been fully
provided for allowance.
ii. Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings, payables or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of loan and borrowings
and payables, net of directly attributable transaction costs.
The Group classifies its financial liabilities as: (i) financial liabilities at FVTPL or (ii) financial
liabilities measured at amortized cost.
The Group’s financial liabilities include trade and other payables, accrued expenses, customer
deposits, interest-bearing loans, and lease liabilities. Interest-bearing loans consist of short-
term bank loans, two-step loans, bonds and medium-term note, long-term bank loans, and
other borrowings.
34
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 71 are satisfied. The Group has not
designated any financial liability as at FVTPL.
(b) Financial liabilities measured at amortized cost
This is the category most relevant to the Group. After initial recognition, interest-bearing
loans and other borrowings are subsequently measured at amortized cost using the EIR
method. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization process. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortization is included as finance costs in
the statement of profit or loss. This category generally applies to interest-bearing loans
and other borrowings. For more information, refer to Note 19.
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.
35
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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”).
36
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 the consolidated statement of profit or loss and
other comprehensive income.
Goodwill is tested for impairment annually and when circumstances indicate that the carrying value
may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of
each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the
CGU is less than its carrying amount, an impairment loss is recognized. Impairment loss relating
to goodwill can not be reversed in future periods.
x. Current and non-current classifications
The Group presents assets and liabilities in the statement of financial position based on current
and non-current classification. An asset is presented as current when it is:
i. expected to be realized or intended to be sold, or consumed in the normal operating cycle;
ii. held primarily for the purpose of trading; or
iii. expected to be realized within twelve months after the reporting period; or
iv. cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period.
Assets which do not meet above criteria are classified as non-current assets.
A liability is presented as current when:
i. it is expected to be settled in the normal operating cycle;
ii. it is held primarily for the purpose of trading;
iii. it is due to be settled within twelve months after reporting period;
iv. there is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.
The terms of liability that could, at the option of counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.
Liabilities which do not meet above criteria are classified as long-term liabilities.
Deffered tax assets and liabilities are classified as non-current assets and liabilities.
37
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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.
38
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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.
In 2021, the Company accelerated the useful lives of Multi-Service Access Node (“MSAN”)
assets until 2022. In 2022, the Group changed the estimated useful lives of towers in
Indonesia (Note 11). In 2023, there is no change of estimated useful lives.
(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.
39
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 and historical collection experience. Such allowances are adjusted
periodically to reflect the actual and anticipated experience. Details of the nature and
carrying amounts of allowance for expected credit losses of receivables are disclosed in
Note 5.
The Group has reassessed the model used to calculate ECLs based on the latest
reasonable and supportable data to better reflect the current change in circumstances.
Methods and approaches will continue to be monitored and updated if additional
reasonable and supportable data and information are available, including forward-looking
information and other input in the future.
(e) Revenue
(i) Critical judgements in determining the performance obligation, timing of revenue
recognition and revenue classification
The Group provides information technology services that are bespoke in nature.
Bespoke products consist of various goods and/or services bundled together in order
to provide integrated solution services to customers. In addition to the bespoke service,
the Group also provides multiple standard products as bundling product in contract with
customer. Significant judgement is required in determining the number and nature of
performance obligations promised to customers in those contracts. The number and
nature of performance obligations will determine the timing of revenue recognition for
such contract.
The Group reviews the determination of performance obligations on a contract-by-
contract basis. When a contract consisting of several goods and/or service is assessed
to have one performance obligation, the Group applies a single method of measuring
progress for the performance obligation based on the measurement method that best
depicts the economics of the contract, which in most cases is over time.
The Group also presents the revenue classification using consistent approach.
When a contract consisting of several goods and/or service is assessed to have one
performance obligation, the Group presents that performance obligations in one
financial statement line items which best represent the main service of the Group, which
in most cases is the internet, data and information technology services.
(ii) Critical judgements in determining the stand-alone selling price
The Group provides wide array of products related to telecommunication and
technology. To determine the stand-alone selling price for goods and/or services that
do not have any readily available observable price, the Group uses the expected cost-
plus margin approach. The Group determines the appropriate margin based on
historical achievement.
40
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 48: Impairment
of Assets.
(g) Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statement of
financial position cannot be measured based on quoted prices in active markets, their fair
value is measured using valuation techniques including the discounted cash flow (“DCF”)
model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions relating to these factors could affect the reported fair value of
financial instruments
(h) Acquisition
The Group evaluates each acquisition transaction to determine whether it will be treated
as an asset acquisition or business combination. For transactions that are treated as an
asset acquisition, the purchase price is allocated to the assets obtained, without the
recognition of goodwill. For acquisitions that meet the business combination definition,
the Group applies the accounting for business acquisiton method for assets acquired and
liabilities assumed which are recorded at fair value at the acquisition date, and the results
of operations are included with the Group's results from the date of each acquisition.
Any excess from the purchase price paid for the amount recognized for assets acquired
and liabilities incurred is recorded as goodwill. The Group continues to evaluate
acquisitions that are counted as a business combination for a period not exceeding one
year after the applicable acquisition date of each transaction to determine whether
additional adjustments are needed to allocate the purchase price paid for the assets
acquired and liabilities assumed. The fair value of assets acquired and liabilities incurred
are usually determined using either an estimated replacement cost or a discounted cash
flow valuation method. When determining the fair value of tangible assets acquired, the
Group estimates the cost of replacing assets with new assets by considering factors such
as the age, condition, and economic useful lives of the assets. When determining the fair
value of the intangible assets obtained, the Group estimates the applicable discount rate
and the time and amount of future cash flows, including the rates and terms for the
extension and reduction.
rienc
41
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS
2023 2022
Balance Balance
Currency Rupiah Currency Rupiah
Currency (in million) equivalent (in million) equivalent
Cash on hand Rp - 14 - 11
Cash in bank
Related parties
PT Bank Mandiri (Persero) Tbk (“Bank Mandiri”) Rp - 3,346 - 6,413
US$ 37 572 49 758
EUR 2 38 2 34
JPY 6 1 6 1
HKD 1 3 3 5
AU$ 0 0 0 0
PT Bank Negara Indonesia (Persero) Tbk (“BNI”) Rp - 4,228 - 4,298
US$ 4 64 7 111
SGD 0 0 0 0
EUR 0 0 0 0
PT Bank Tabungan Negara (Persero) Tbk ("BTN") Rp - 2,597 - 2,713
PT Bank Rakyat Indonesia (Persero) Tbk (“BRI”) Rp - 1,471 - 2,691
US$ 0 6 11 179
TWD 1 0 - -
Others (each below Rp100 billion) Rp - 59 - 230
US$ 0 0 0 0
Sub-total 12,385 17,433
Third parties
The Hongkong and Shanghai Banking Corporation Ltd.
("HSBC Hongkong") US$ 43 661 55 861
HKD 5 9 5 10
Standard Chartered Bank (“SCB”) US$ 14 215 16 245
SGD 6 74 5 53
PT Bank CIMB Niaga Tbk (”Bank CIMB Niaga”) Rp - 265 - 1,379
US$ 0 2 0 5
PT Bank Central Asia Tbk (“BCA”) Rp - 144 - 80
US$ 0 3 0 3
Bank Pembangunan Daerah ("BPD") Rp - 140 - 75
DBS Bank (Hong Kong) Ltd. ("DBS Hong Kong") US$ 9 138 0 0
HKD 0 0 0 0
Citibank, N.A. (“Citibank”) Rp - 6 - 10
US$ 8 127 5 80
EUR 0 0 - -
Others (each below Rp100 billion) Rp - 219 - 652
US$ 10 151 12 187
TWD 41 21 58 29
MYR 5 15 5 17
AU$ 0 5 2 23
MMK 353 3 386 3
SGD 3 36 2 29
EUR - - 0 0
Sub-total 2,234 3,741
Total of cash in bank 14,619 21,174
Time deposit
Related parties
BRI Rp - 1,550 - 845
US$ 22 340 21 319
BNI Rp - 1,266 - 378
US$ 23 353 9 145
BTN Rp - 1,065 - 1,655
PT Bank Syariah Indonesia Tbk. (“BSI”) Rp - 1,160 - 1,220
Mandiri Rp - 513 - 844
US$ 25 392 31 489
Sub-total 6,639 5,895
42
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS (continued)
2023 2022
Balance Balance
Currency Rupiah Currency Rupiah
Currency (in million) equivalent (in million) equivalent
Time deposits (continued)
Third parties
PT Bank Mega Tbk (“Bank Mega”) Rp - 1,433 - 1,986
US$ 20 312 12 181
PT Bank Tabungan Pensiunan Nasional Syariah Tbk
("BTPN Syariah") Rp - 137 - -
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk
(“BJB”) Rp - 1,419 - 1,423
Bank CIMB Niaga Rp - 928 - 122
US$ 5 70 11 168
PT Bank Maybank Indonesia Tbk ("Maybank") Rp - 658 - 220
US$ 23 358 14 224
MYR - - 2 6
BPD Rp - 1,569 - 25
PT Bank Danamon Indonesia Tbk (“Bank Danamon”) Rp - 491 - 40
US$ 9 137 9 133
Others (each below Rp100 billion) Rp - 60 - 340
US$ 10 156 - -
MYR 2 8 - -
Sub-total 7,736 4,868
Total of time deposits 14,375 10,763
Allowance for expected credit losses (1) (1)
Total 29,007 31,947
Interest rates per annum on time deposits are as follows:
2023 2022
Rupiah 1.95% - 7.25% 1.95% - 6.50%
Foreign currency 2.50% - 5.50% 0.25% - 4.05%
The Group placed the majority of its cash and cash equivalents in state-owned (related party) banks
because they have the most extensive branch networks in Indonesia and are considered to be
financially sound banks.
43
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
4. OTHER CURRENT FINANCIAL ASSETS
2023 2022
Balance Balance
Foreign Foreign
currency Rupiah currency Rupiah
Currency (in millions) equivalent (in millions) equivalent
Time deposit
Related parties
BRI Rp - 255 - 50
BNI Rp - 160 - 80
Bank Mandiri Rp - 95 - 10
US$ 5 77 5 79
BSI Rp - 118 - 100
Others (each below Rp100 billion) Rp - 10 - -
Third parties
United Overseas Bank Limited Singapore
(“UOB Singapore”) US$ 12 186 12 182
Standard Chartered Bank (Singapore) Limited
(“SCB Singapore”) US$ 7 100 7 102
Others (each below Rp100 billion) Rp - 85 - 18
US$ 2 32 2 32
Total time deposits 1,118 653
Escrow accounts Rp - 214 - 383
US$ 2 24 2 30
Total escrow accounts 238 413
Mutual funds
Related parties
Others (each below Rp100 billion) Rp - 85 - 81
Third parties
PT Henan Putihrai Asset Management
(“HPAM”) Rp - 217 - 200
Total mutual funds 302 281
Others (each below Rp100 billion) Rp - 3 - 0
US$ - - 0 2
MYR 0 0 0 0
Total others 3 2
Allowance for expected credit losses (0) (0)
Total 1,661 1,349
The time deposits have maturities of more than three months but not more than one year, with interest
rates as follows:
2023 2022
Rupiah 2.75% - 6.75% 2.50% - 5.00%
Foreign currency 2.30% - 5.85% 1.95% - 5.06%
44
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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
2023 2022
State-owned enterprises 1,914 1,985
PT Indonusa Telemedia ("Indonusa") 386 385
Indosat 303 175
Others (each below Rp100 billion) 443 156
Total 3,046 2,701
Allowance for expected credit losses (1,128) (1,081)
Net 1,918 1,620
(ii) Third parties
2023 2022
Individual and business subscribers 13,586 12,517
Overseas international carriers 1,541 984
Total 15,127 13,501
Allowance for expected credit losses (6,378) (6,487)
Net 8,749 7,014
b. By age
2023 2022
Allowance for Expected Allowance for Expected
expected credit expected credit
Gross credit losses loss rate Gross credit losses loss rate
Not past due 7,020 386 5.5% 6,964 399 5.7%
Past due up to 3 months 2,758 369 13.4% 1,674 349 20.8%
Past due more than 3 to 6 months 1,215 313 25.8% 664 222 33.4%
Past due more than 6 months 7,180 6,438 89.7% 6,900 6,598 95.6%
Total 18,173 7,506 16,202 7,568
The Group has made allowance for expected credit losses based on the collective assessment of
historical impairment rates and individual assessment of its customers’ credit history, adjusted for
forward-looking factors specific from the customers and the economic environment. The Group
does not apply a distinction between related party and third party receivables in assessing amounts
past due. As of December 31, 2023 and 2022, the carrying amounts of trade receivables of the
Group considered past due but not impaired amounted to Rp4,033 billion and Rp2,069 billion,
respectively. Management believes that receivables past due but not impaired, along with trade
receivables that are neither past due nor impaired, are due from customers with good credit history
and are expected to be recoverable.
c. By currency
2023 2022
Rupiah 15,646 14,714
U.S. Dollar 2,360 1,359
Singapore Dollar 143 89
Others (each below Rp100 billion) 24 40
Total 18,173 16,202
Allowance for expected credit losses (7,506) (7,568)
Net 10,667 8,634
45
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES (continued)
d. Movements in the allowance for expected credit losses
2023 2022
Beginning balance 7,568 7,802
Allowance for expected credit losses 513 567
Receivables written-off (575) (801)
Ending balance 7,506 7,568
The receivables written-off relate to both related party and third party trade receivables.
Management believes that the allowance for expected credit losses of trade receivables is adequate
to cover losses on uncollectible trade receivables.
As of December 31, 2023 and 2022, certain trade receivables of the subsidiaries amounting to
Rp1,248 billion and Rp1,129 billion, respectively, have been pledged as collateral under lending
agreements (Notes 18a and 19c).
6. CONTRACT ASSETS
2023 2022
Contract assets 2,877 2,610
Allowance for expected credit losses (147) (119)
Net 2,730 2,491
Current portion (2,704) (2,457)
Non-current portion 26 34
Management believes that the allowance for expected credit losses of contract assets is adequate to
cover losses on uncollectible contract assets.
Refer to Note 32 for details of related party transactions.
7. INVENTORIES
Inventories, all recognized at net realizable value, consist of:
2023 2022
SIM cards and prepaid vouchers 791 321
Components 29 588
Others (each below Rp100 billion) 231 294
Total 1,051 1,203
Provision for obsolescence (54) (59)
Net 997 1,144
Management believes the provision is adequate to cover losses from the decline in inventory value
due to obsolescence.
The inventories recognized as expenses included in operations, maintenance and telecommunication
service expenses in 2023 and 2022 amounted to Rp797 billion and Rp747 billion, respectively
(Note 25).
There were no inventories pledged as collateral under lending agreements as of December 31, 2023
and 2022.
46
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
7. INVENTORIES (continued)
As of December 31, 2023 and 2022, modules (part of property and equipment) and components held
by the Group with book value amounting to Rp96 billion and Rp94 billion, respectively, have been
insured against fire, theft, and other specific risks. The total sum insured as of December 31, 2023 and
2022 amounted to Rp94 billion and Rp111 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:
2023 2022
Prepaid frequency license fees - current
portion (Note 35c.i) 6,173 5,289
Advances 768 679
Prepaid salaries 276 218
Other receivables 266 245
Others (each below Rp100 billion) 513 580
Total 7,996 7,011
9. CONTRACT COST
Movements of contract costs are as follows:
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
2022
Cost to obtain Cost to fulfill Total
At January 1, 2022 1,532 732 2,264
Amortization during the year (338) - (338)
Expense during the year - (514) (514)
Addition current year 360 640 1,000
At December 31, 2022 1,554 858 2,412
Current (354) (317) (671)
Non-current 1,200 541 1,741
47
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
10. LONG-TERM INVESTMENTS
The breakdown of long-term investments are as follows:
2023 2022
Financial instruments
At fair value through profit or loss:
Equity 7,537 7,624
Convertible bonds 491 884
At fair value through other comprehensive income:
Equity 25 22
8,053 8,530
Associates
PT Jalin Pembayaran Nusantara ("Jalin") 105 115
Others (each below Rp100 billion) 4 8
109 123
Total long-term investments 8,162 8,653
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 December 31, 2023,
Telkomsel assessed the fair value of the investment in GOTO was Rp86 per share.
The total unrealized loss from changes in fair value of Telkomsel’s investment in GOTO as of
December 31, 2023, amounted to Rp119 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.
The additional investments during the year by MDI amounted to Rp338 billion. The total unrealized
loss from changes in fair value of MDI’s investment amounted to Rp514 billion as of December
31, 2023 and was presented as unrealized loss arising from change of valuation of investments
in the consolidated statements of profit or loss.
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 investments cumulatively as of December 31, 2023 and
2022 was amounting to Rp328 billion and Rp346 billion, respectively
48
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT
The details of property and equipment are as follows:
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
49
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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,
2021 Additions Deductions Translations 2022
At cost:
Directly acquired assets
Land rights 1,821 10 - 7 1,838
Buildings 17,296 778 (1) 874 18,947
Leasehold improvements 1,477 80 (86) 100 1,571
Switching equipment 18,324 1,066 (130) 823 20,083
Telegraph, telex, and data communication
equipment 1,583 - - - 1,583
Transmission installation and equipment 165,621 4,494 (9,501) 10,492 171,106
Satellite, earth station, and equipment 10,528 155 (5) 126 10,804
Cable network 67,559 7,807 (9) (662) 74,695
Power supply 22,035 433 (719) 1,527 23,276
Data processing equipment 19,258 877 (390) 1,209 20,954
Other telecommunication peripherals 9,121 1,261 - 20 10,402
Office equipment 2,352 157 (85) 201 2,625
Vehicles 537 100 (165) 133 605
Other equipment 47 2 (3) 5 51
Property under construction 2,950 16,936 - (15,288) 4,598
Total 340,509 34,156 (11,094) (433) 363,138
Accumulated depreciation:
Directly acquired assets
Buildings 5,537 632 (1) 60 6,228
Leasehold improvements 1,163 130 (86) - 1,207
Switching equipment 12,225 1,985 (127) 17 14,100
Telegraph, telex, and data communication
equipment 1,582 - - - 1,582
Transmission installation and equipment 94,532 12,087 (9,362) 78 97,335
Satellite, earth station, and equipment 5,199 830 (5) 17 6,041
Cable network 18,735 4,388 (9) (604) 22,510
Power supply 15,874 1,699 (712) 29 16,890
Data processing equipment 14,130 1,806 (388) (58) 15,490
Other telecommunication peripherals 4,330 1,717 - 20 6,067
Office equipment 1,866 261 (79) 25 2,073
Vehicles 270 38 (135) 69 242
Other equipment 40 3 (2) 3 44
Total 175,483 25,576 (10,906) (344) 189,809
Net book value 165,026 173,329
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
2023 2022
Proceeds from sale of property and equipment 100 526
Net book value (16) (129)
Gain on disposal or sale of property and equipment 84 397
b. Others
(i) During 2023 and 2022, the CGUs that independently generate cash inflows are fixed wireline,
cellular, and others. Management believes that there is no indication of impairment in the
assets of such CGUs as of December 31, 2023 and 2022.
(ii) Interest capitalized to property under construction amounted to Rp124 billion and
Rp79 billion for the year ended December 31, 2023 and 2022, respectively. The capitalization
rate used to determine the amount of borrowing costs eligible for capitalization ranged from
2.50% to 8.24% and 5.63% to 7.90% for the year ended December 31, 2023 and 2022,
respectively.
(iii) No foreign exchange loss was capitalized as part of property under construction for the year
ended December 31, 2023 and 2022.
50
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT (continued)
b. Others (continued)
(iv) During 2023 and 2022, the Group obtained proceeds from the insurance claim on lost and
damaged property and equipment, with a total value of Rp199 billion and Rp299 billion,
respectively, and were recorded as part of “Other income - net” in the consolidated
statements of profit or loss and other comprehensive income. During 2023 and 2022, the net
carrying values of these assets amounted to Rp185 billion and Rp270 billion, respectively,
were charged to the consolidated statements of profit or loss and other comprehensive
income.
(v) In 2022, the estimated useful lives of Group towers were changed from 30 to 40 years.
The impact of reduction in the depreciation expense for the year ended December 31, 2022
amounted to Rp93 billion. Towers are presented as part of transmission installation and
equipment.
(vi) In 2022, the equipment units of Telkomsel with the net carrying amount of Rp909 billion had
been exchanged with equipment units of PT ZTE Indonesia.
(vii) In 2021, the Company decided to discontinue the use of MSAN assets and accelerate the
depreciation of the MSAN assets, which were fully depreciated in 2022. The impact of
accelerated depreciation of MSAN assets for the year ended December 31, 2022 amounted
to Rp1,494 billion. MSAN assets are presented as part of cable network.
(viii) The Group owns several pieces of land located throughout Indonesia with Right to Build
(“Hak Guna Bangunan” or “HGB”) for a period of 8-50 years which will expire between 2024
and 2071. Management believes that there will be no issue in obtaining the extension of the
land rights when they expire.
(ix) As of December 31, 2023 and 2022, the Group’s property and equipment excluding land
rights, with a net carrying amount of Rp175,519 billion and Rp172,112 billion, respectively,
were insured againts fire, theft, earthquake and other specified risks, including business
interruption. The total blanket policies as of December 31, 2023 and 2022 amounted to
Rp41,045 billion and Rp36,319 billion, HK10 million, SG$373 million, and MYRNil and
MYR54 million, respectively, and first loss basis amounted to Rp2,750 billion, respectively.
Management believes that the insurance coverage is adequate to cover potential losses from
the insured risks.
(x) As of December 31, 2023 and 2022, the percentage of completion of property under
construction was approximately 74.09% and 55.91%, respectively, of the total contract value
or Rp5,836 billion and Rp3,934 billion are recorded as amount of expenditures in property
under construction, respectively, with estimated dates of completion until December 2025
and August 2025, respectively. The balance of property under construction mainly consist of
buildings, transmission installation and equipment, cable network, and power supply.
Management believes that there is no impediment to the completion of the construction in
progress.
(xi) As of December 31, 2023 and 2022, all assets owned by the Company have been pledged
as collateral for bonds (Note 19b) while certain property and equipment of the Company’s
subsidiaries with gross carrying value amounting to Rp3,076 billion and Rp18,370 billion,
respectively, have been pledged as collateral under lending agreements (Notes 18a and
19c).
51
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT (continued)
b. Others (continued)
(xii) As of December 31, 2023 and 2022, the cost of fully depreciated property and equipment of
the Group that are still used in operations amounted to Rp85,564 billion and Rp67,979 billion,
respectively. The Group is currently conducting modernization of network assets to replace
the fully depreciated property and equipment.
(xiii) In 2023 and 2022, the total fair values of land rights and buildings of the Group amounted to
Rp51,373 billion and Rp49,014 billion, respectively.
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 are as follows:
Transmission
installation and
Land rights Buildings equipment Vehicles Others Total
As at January 1, 2022 4,002 729 13,120 410 208 18,469
Additions 1,169 121 8,205 488 23 10,006
Deductions and reclassifications (217) 17 (2,399) (197) 8 (2,788)
Depreciation expense (867) (204) (4,067) (178) (35) (5,351)
As at December 31, 2022 4,087 663 14,859 523 204 20,336
Additions 1,654 156 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
The carrying amounts of the lease liabilities and the movements are as follows:
2023 2022
As at January 1 18,661 16,387
Accretion of interest 976 931
Additions (Note 39a) 10,390 10,006
Deductions (9,602) (8,663)
As at December 31 20,425 18,661
Current (5,575) (4,925)
Non-current 14,850 13,736
Maturity analysis of lease payments are as follows:
2023
Less than 1 year 6,614
1-5 years 11,453
More than 5 years 6,431
Total lease payments 24,498
Interest (4,073)
Net present value of lease payments 20,425
Current (5,575)
Non-current 14,850
52
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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.
Detail of expenses related to leases for the year ended December 31, 2023 and 2022 are as follows:
2023 2022
Depreciation expense of right-of-use assets 5,160 5,351
Expense relating to short-term leases 3,743 3,821
Interest expense on lease liabilities 976 931
Expense relating to leases of low-value assets 27 52
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 2024 and 2051. 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:
2023 2022
Less than 1 year 5,099 2,582
1-5 years 9,412 8,354
More than 5 years 5,098 5,107
Total 19,609 16,043
13. OTHER NON-CURRENT ASSETS
The breakdown of other non-current assets is as follows:
2023 2022
Prepaid frequency license fees -
net of current portion (Note 35c.i) 1,987 1,291
Claims for tax refund – net of current portion (Note 27b) 1,606 621
Prepaid expenses 984 446
Advances 368 781
Security deposit 159 144
Others (each below Rp100 billion) 329 340
Total 5,433 3,623
53
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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, 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
Other intangible
Goodwill Software License assets Total
Gross carrying amount:
Balance, January 1, 2022 1,492 17,458 174 1,512 20,636
Additions - 2,527 440 49 3,016
Deductions - (175) - (70) (245)
Reclassifications/translations - (31) 6 - (25)
Balance, December 31, 2022 1,492 19,779 620 1,491 23,382
Accumulated amortization:
Balance, January 1, 2022 (402) (11,714) (125) (889) (13,130)
Amortization - (2,063) (26) (91) (2,180)
Deductions - 175 - 70 245
Reclassifications/translations - (14) (1) - (15)
Balance, December 31, 2022 (402) (13,616) (152) (910) (15,080)
Net book value 1,090 6,163 468 581 8,302
(i) Goodwill resulted from the acquisition of Sigma (2008), Admedika (2010), data center PT Bina
Data Mandiri (“BDM”) (2012), MNDG (2015), Melon and PT Griya Silkindo Drajatmoerni (“GSDm”)
(2016), TSGN, Nutech, and BDI (2017), SSI, CIP, and Telin Malaysia (2018), PST (2019), and
Digiserve (2021).
(ii) As of December 31, 2023, the impairment of goodwill arising from the acquisition of BDI amounted
to Rp11 billion. The impairment losses are presented as part of “Depreciation and amortization
expenses” in the consolidated statements of profit and loss and other comprehensive income.
(iii) The remaining amortization periods of software for the periods ended December 31, 2023 and
2022 ranges from 1-6 years, respectively. The amortization is presented as part of “Depreciation
and amortization expenses” in the consolidated statements of profit or loss and other
comprehensive income.
(iv) As of December 31, 2023 and 2022, the cost of fully amortized intangible assets that are still used
in operations amounted to Rp10,604 billion and Rp9,640 billion, respectively.
54
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
15. TRADE PAYABLES
The breakdown of trade payables is as follows:
2023 2022
Related parties
Purchases of equipment, materials, and services 424 262
Payables to other telecommunication providers 161 169
Sub-total 585 431
Third parties
Purchases of equipment, materials, and services 12,748 14,453
Payables to other telecommunication providers 2,876 2,231
Radio frequency usage charges, concession fees,
and Universal Service Obligation (“USO”) charges 2,399 1,342
Sub-total 18,023 18,026
Total 18,608 18,457
Trade payables by currency are as follows:
2023 2022
Rupiah 15,929 16,727
U.S. Dollar 2,537 1,636
Others 142 94
Total 18,608 18,457
Terms and conditions of the above trade payables:
b. The Group’s trade payables are non-interest bearing and are normally settled on 1 year term.
c. Refer to Note 32 for details on related party transactions.
d. Refer to Note 37b.v for the Group’s liquidity risk management.
16. ACCRUED EXPENSES
The breakdown of accrued expenses is as follows:
2023 2022
Operation, maintenance,
and telecommunication services 5,813 8,183
Salaries and benefits 3,909 4,014
General, administrative, and marketing expenses 3,114 3,067
Interest and bank charges 243 181
Total 13,079 15,445
Refer to Note 32 for details of related party transactions.
55
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
17. CONTRACT LIABILITIES
a. Current portion
2023 2022
Advances from customers for Mobile 3,267 3,577
Advances from customers for Enterprise 1,587 1,126
Advances from customers for WIB 1,291 1,188
Advances from customers for Consumer 244 233
Advances from customers for others 459 171
Total 6,848 6,295
b. Non-current portion
2023 2022
Advances from customers for WIB 795 700
Advances from customers for Consumer 705 844
Advances from customers for Enterprise 251 17
Advances from customers for others 840 -
Total 2,591 1,561
Contract liabilities at the beginning of the period which were recognized as revenue in 2023 and
2022 amounted to Rp6,295 billion and Rp6,795 billion, respectively.
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 2023 2022
Related parties
Bank Mandiri 4,013 3,483
BNI 903 979
Sub-total 4,916 4,462
Third parties
PT Bank HSBC Indonesia ("HSBC") 2,547 1,836
MUFG Bank ("MUFG") 1,155 1,349
UOB Indonesia 500 -
PT Bank DBS Indonesia ("DBS") 440 475
Others (each below Rp100 billion) 92 69
Sub-total 4,734 3,729
Total 9,650 8,191
56
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 December 31, 2023 is as
follows:
Total
facility
(in Interest rate per
Borrower Currency billions)* Maturity date Interest rate annum Security**
Mandiri
2020 Finnet Rp 500 October 31, 2024 Monthly 1 month None
JIBOR + 1.30%
2021 - 2022 Nutech, Rp 3,550 July 26, 2024 - Monthly 5.85% - 9.00% Trade
Mitratel September 27, 2024 receivables
and property
and
equipment
BNI
2014 - 2017 GSD, Sigma Rp 350 January 9, 2024 - Monthly 7.90% - 8.50% Trade
November 7, 2024 receivables
and property
and
equipment
2017 - 2021 Metranet, Rp 1,135 February 18, 2024 - Monthly 1 month JIBOR + Trade
Telkom Infra, June 6, 2024 1.75% - 2.50% receivables
Infomedia
HSBC
2014 Sigmaa Rp 400 November 6, 2024 Monthly Under BLR 7.40% Trade
receivables
2018 - 2023 Sigma, Metra, Rp 2,613 June 4, 2024 - Monthly, 1 month JIBOR + None
PINS, December 31, 2024 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%
UOB Indonesia
2016 Finnet Rp 500 October 31, 2024 Monthly 1 month None
JIBOR + 1.75%
DBS
2018 Telkom Infra, Rp 475 July 31, 2024 Monthly 1 month None
Infomedia JIBOR + 1.20%
* In original currency
** Refer to Note 5 and Note 11 for details of trade receivables and property and equipment pledged as collateral.
a
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 has complied with
all covenants regarding these financial ratios, except for Sigma which its debt service coverage
ratio is still lower than required. 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.
The credit facilities were obtained by the Group for working capital purposes.
57
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 2023 2022
Two-step loans 19a 84 118
Bonds and Medium-term notes ("MTN") 19b 548 -
Bank loans 19c 9,282 7,788
Other borrowings 19d 362 952
Total 10,276 8,858
19. LONG-TERM LOANS AND OTHER BORROWINGS
Notes 2023 2022
Two-step loans 19a - 91
Bonds and MTN 19b 4,795 4,793
Bank loans 19c 22,978 22,085
Other borrowings 19d - 362
Total 27,773 27,331
Scheduled principal payments as of December 31, 2023 are as follows:
Year
Notes Total 2025 2026 2027 2028 Thereafter
Bonds and MTN 19b 4,795 2,099 - - - 2,696
Bank loans 19c 22,978 6,512 5,801 3,858 3,019 3,788
Total 27,773 8,611 5,801 3,858 3,019 6,484
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.
2023 2022
Outstanding Outstanding
Foreign currency Rupiah Foreign currency Rupiah
Lenders Currency (in millions) equivalent (in millions) equivalent
Overseas banks Yen 768 84 1,536 181
Rp - - - 28
Total 84 209
Current maturities (Note 18b) (84) (118)
Long-term portion - 91
Principal payment Interest rate per
Lenders Currency schedule Interest payment period annum
Overseas banks Yen Semi-annually Semi-annually 2.95%
Rp Semi-annually Semi-annually 7.125%
The loans were intended for the development of telecommunications infrastructure and supporting
telecommunications equipment. The loans will be settled semi-annually and due on various dates
until 2024.
58
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
a. Two-step loans (continued)
The Company had used all facilities under the two-step loans program since 2008 and the
withdrawal period for the two-step loan has ended.
Under the loan covenants, the Company is required to maintain financial ratios as follows:
i. Projected net revenue to projected debt service ratio should exceed 1.2:1 for the two-step loans
originating from Asian Development Bank (“ADB”).
ii. Internal financing (earnings before depreciation and finance costs) should exceed 20%
compared to annual average capital expenditures for loans originating from the ADB.
As of December 31, 2023, the Company has complied with the above-mentioned ratios.
b. Bonds and Medium-term notes (“MTN”)
Outstanding
Bonds and MTN 2023 2022
Bonds
2015
Series B 2,100 2,100
Series C 1,200 1,200
Series D 1,500 1,500
MTN
MTN Mitratel 2023 550 -
Total 5,350 4,800
Unamortized debt issuance cost (7) (7)
Long-term portion 5,343 4,793
Current maturities (Note 18b) (548) -
Long-term portion 4,795 4,793
i. Bonds
2015
Issuance Interest Interest rate
Bonds Principal Issuer Listed on date Maturity date payment period per annum
Series A 2,200 The Company IDX June 23, 2015 June 23, 2022 Quarterly 9.93%
Series B 2,100 The Company IDX June 23, 2015 June 23, 2025 Quarterly 10.25%
Series C 1,200 The Company IDX June 23, 2015 June 23, 2030 Quarterly 10.60%
Series D 1,500 The Company IDX June 23, 2015 June 23, 2045 Quarterly 11.00%
Total 7,000
The bonds are not secured by specific security but by all of the Company’s assets, movable or
non-movable, either existing or in the future (Note 11b.xi). The underwriters of the bonds are
PT. Bahana TCW Management Investment (“Bahana TCW”), PT BRI Danareksa Sekuritas, PT
Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk. and the trustee is Bank Permata.
The Company received the proceeds from the issuance of bonds on June 23, 2015.
The funds received from the public offering of bonds net of issuance costs, were used to finance
capital expenditures which consisted of wave broadband, backbone, metro network, regional
metro junction, information technology application and support, and acquisition of some
domestic and international entities.
As of December 31, 2023, the rating of the bonds issued by Pefindo is idAAA (Triple A).
59
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
b. Bonds and Medium-term notes (“MTN”) (continued)
i. Bonds (continued)
Based on the Indenture Trusts Agreement, the Company is required to comply with all
covenants or restrictions, including maintaining financial ratios as follows:
(a) Debt to equity ratio should not exceed 2:1.
(b) EBITDA to interest ratio should not be less than 4:1.
(c) Debt service coverage is at least 125%.
As of December 31, 2023, the Company has complied with the above-mentioned ratios.
ii. Medium-term notes (“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).
c. Bank loans
2023 2022
Outstanding Outstanding
Foreign Foreign
currency Rupiah currency Rupiah
Lenders Currency (in millions) equivalent (in millions) equivalent
Related parties
BNI Rp - 6,182 - 5,472
Bank Mandiri Rp - 3,453 - 4,381
BRI Rp - 955 - 1,409
BSI Rp - 509 - 22
Sub-total 11,099 11,284
Third parties
BCA Rp - 10,170 - 9,757
Syndication of banks Rp - 2,500 - 680
USD 10 160 17 265
Bank CIMB Niaga Rp - 2,110 - 2,221
USD 4 60 4 61
DBS Rp - 1,500 - 1,500
Bank Permata Rp - 1,313 - 1,021
Bank of China Rp - 1,400 - 1,000
HSBC Rp - 625 - 750
BJB Rp - 500 - -
MUFG Bank Rp - 500 - 500
Bank Danamon Rp - 273 - 455
PT Bank ANZ Indonesia ("Bank ANZ") Rp - 110 - 198
UOB Singapore USD - - 13 205
Others (each below Rp100 billion) Rp - 13 - 60
MYR 9 29 10 34
Sub-total 21,263 18,707
Total 32,362 29,991
Unamortized debt issuance cost (102) (118)
32,260 29,873
Current maturities (Note 18b) (9,282) (7,788)
Long-term portion 22,978 22,085
60
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 December 31, 2023 is as follows:
Current
Total period
facility payment Principal Interest
(in (in payment payment Interest rate
Borrower Currency billions)* billions)* schedule period per annum Security**
BNI
2013 - 2022 The Rp 10,175 1,281 2018 - 2033 Monthly, 1 month Trade
Company, Quarterly JIBOR + 2.25%; receivables
GSD, TLT, 3 months JIBOR + and
Sigma, 0.50% - 1.85% property
Mitratel and
equipment
2018 GSD Rp 182 10 2021 - 2024 Quarterly 8.50% Trade
receivables
Bank Mandiri
2017 - 2023 The Rp 6,893 1,128 2019 - 2029 Quarterly 3 months JIBOR + None
Company, 1.00% - 1.85%
GSD,
Mitratel,PST
BRI
2017 - 2019 The Rp 2,500 455 2019 - 2026 Quarterly 3 months JIBOR + None
Company 0.75% - 1.35%
BSI
2018 - 2021 SSI, Rp 1,055 509 2019 - 2025 Monthly 5.50% - 7.50% None
Telkomsel
BCA
2020 - 2023 The Rp 4,500 - 2024 - 2030 Quarterly 6.75% - 6.80% None
Company,
Mitratel
2020 - 2023 The Rp 9,186 1,359 2020 - 2031 Quarterly 3 months JIBOR + None
Company, 1.00% - 1.50%
PST, GSD
Syndication
of banks
2018 Telin USD 0 0 2020 - 2025 Semi- 6 months None
annually SOFR + 1.55%
2022 Mitratel Rp 2,500 0 2024 - 2030 Quarterly 7.68% None
Bank CIMB
Niaga
2019 - 2022 PINS, Rp 2,300 70 2021 - 2029 Quarterly 3 months JIBOR + None
Mitratel 1.30% - 1.95%
2021 - 2022 Telin USD 0 - 2024 - 2030 Semi- 6 months None
annually SOFR + 1.82%
DBS
2021 Mitratel Rp 3,500 - 2023 - 2028 Quarterly 3 months None
JIBOR + 1.20%
Bank Permata
2020 - 2022 Mitratel Rp 2,000 208 2021 - 2029 Quarterly 3 months None
JIBOR + 1.30%
61
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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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 December 31, 2023 is as follows
(continued):
Current
Total period
facility payment Principal Interest
(in (in payment payment Interest rate
Borrower Currency billions)* billions)* schedule period per annum Security**
Bank of China
2019 Telkomsel Rp 1,400 2,000 2021 - 2025 Monthly 4.90% None
HSBC
2021 Mitratel Rp 750 125 2023 - 2028 Quarterly 3 months None
JIBOR + 1.85%
BJB
2023 Telkomsel Rp 1,000 2,000 2023 - 2025 Monthly 5.85% None
MUFG Bank
2021 Mitratel Rp 500 - 2022 - 2028 Quarterly 3 months None
JIBOR + 1.15%
Bank Danamon
2022 Mitratel Rp 636 181 2022 - 2025 Quarterly 3 months None
JIBOR + 1.50%
ANZ
2015 GSD, Rp 440 88 2020 - 2025 Quarterly 3 months JIBOR + None
PINS 1.40% - 2.00%
* In original currency
** Refer to Note 5 and Note 11 for details of trade receivables and property and equipment pledged as collateral.
As stated in the agreements, the Group is required to comply with all covenants or restrictions such
as dividend distribution, obtaining new loans, and maintaining financial ratios. As of December 31,
2023, the Group has complied with all covenants regarding these financial ratios, except for Sigma
and GSD which its debt service coverage ratio is still lower than required. 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.
The credit facilities were obtained by the Group for working capital purposes and investment
purposes.
As of December 31, 2023, the Group had available Rp28,995 billion and USD96 million of undrawn
committed borrowing facilities.
d. Other borrowings
Outstanding
Lenders 2023 2022
PT Sarana Multi Infrastruktur (Persero)
("Sarana Multi Infrastruktur") 362 1,315
Unamortized debt issuance cost 0 (1)
Total 362 1,314
Current maturities (Note 18b) (362) (952)
Long-term portion - 362
62
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)
d. Other borrowings (continued)
Other significant information relating to other borrowings as of December 31, 2023, is as follows:
Total Current
facility period Principal
(in payment payment Interest rate
Borrower Currency billions) (in billions) schedule per annum Security
Sarana Multi
Infrastruktur
March 29, 2019* The Rp 2,836 700 Semi-annually 3 months None
Company (2020 - 2024) JIBOR + 1.75%
March 29, 2019* Telkomsat Rp 164 24 Semi-annually 3 months None
(2020 - 2024) JIBOR + 1.75%
* Based on the latest amendment on June 15, 2020.
Under the agreement, the Company and Telkomsat are required to comply with all covenants or
restrictions, including maintaining financial ratios as follows:
(a) Debt to equity ratio should not exceed 2:1
(b) Net debt to EBITDA ratio should not exceed 4:1
(c) Minimal debt service coverage at least 125%
As of December 31, 2023, the Company and Telkomsat have complied with the above-mentioned
ratios.
20. NON-CONTROLLING INTERESTS
The details of non-controlling interests are as follows:
2023 2022
Non-controlling interests in net assets of subsidiaries:
Telkomsel 11,108 10,535
Mitratel 9,106 9,038
Others 604 431
Total 20,818 20,004
2023 2022
Non-controlling interests in profit (loss)
in current year of subsidiaries:
Telkomsel 7,104 6,419
Mitratel 566 502
Others (22) 6
Total 7,648 6,927
63
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 December 31, 2023 and 2022, non-controlling interest ownership in Telkomsel is 30.10% and
35.00%, respectively. The change in ownership of non-controlling interests in Telkomsel is the result
of the transfer of the Company's IndiHome business to Telkomsel and capital injection from Singtel to
Telkomsel, which became effective from July 1, 2023 (Note 1e).
On December 31, 2023 and 2022, non-controlling interest ownership in Mitratel is 28.16% and
28.15%, respectively. The change in ownership of non-controlling interests in Mitratel is the result of
the execution of the Management and Employee Stock Option Program (“MESOP”).
The summarized financial information of Telkomsel and Mitratel are provided below. This information
is based on amounts before intercompany eliminations.
Summarized statements of financial position:
Telkomsel Mitratel
2023 2022 2023 2022
Current assets 20,505 16,290 3,420 7,886
Non-current assets 92,461 84,701 53,590 48,185
Current liabilities (40,009) (32,241) (11,071) (10,200)
Non-current liabilities (42,308) (38,708) (11,901) (12,064)
Total equity 30,649 30,042 34,038 33,807
Attributable to:
Owners of the parent company 19,541 19,507 24,932 24,769
Non-controlling interests 11,108 10,535 9,106 9,038
Summarized statements of profit or loss and other comprehensive income:
Telkomsel Mitratel
2023 2022 2023 2022
Revenues 102,372 89,039 8,595 7,729
Operation expenses (72,005) (59,574) (4,955) (4,576)
Other expenses - net (2,271) (5,343) (1,501) (1,193)
Profit before income tax 28,096 24,122 2,139 1,960
Income tax expense - net (6,217) (5,755) (128) (175)
Profit for the year 21,879 18,367 2,011 1,785
Other comprehensive income (loss) - net 78 145 2 (1)
Total comprehensive income
for the year 21,957 18,512 2,013 1,784
Attributable to
non-controlling interests 7,104 6,419 566 502
Dividends paid to
non-controlling interests 9,267 9,784 484 272
64
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
20. NON-CONTROLLING INTERESTS (continued)
Summarized statements of cash flows:
Telkomsel Mitratel
2023 2022 2023 2022
Operating 41,693 42,970 5,162 6,020
Investing (14,302) (8,652) (6,504) (10,893)
Financing (28,601) (30,783) (4,118) (7,921)
Net increase (decrease) in cash and
cash equivalents (1,210) 3,535 (5,460) (12,794)
CF
21. CAPITAL STOCK
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
Commisioner (Note 1b):
Isa Rachmatarwata 1,968,000 0 0
Marcelino Rumambo Pandin 1,968,000 0 0
Ismail 1,968,000 0 0
Arya Mahendra Sinulingga 2,014,800 0 0
Rizal Mallarangeng 1,968,000 0 0
Public (individually less than 5%) 43,436,968,061 43.89 2,174
Total 99,062,216,600 100.00 4,953
2022
Percentage of Total paid-in
Description Number of shares
ownership capital
Series A Dwiwarna share
Government 1 0 0
Series B shares
Government 51,602,353,559 52.09 2,580
The Bank of New York Mellon Corporation* 3,889,668,580 3.93 194
Directors (Note 1b):
Ririek Adriansyah 1,156,955 0 0
Budi Setyawan Wijaya 275,000 0 0
Afriwandi 42,500 0 0
Herlan Wijanarko 42,500 0 0
Heri Supriadi 40,000 0 0
Commisioner (Note 1b):
Arya Mahendra Sinulingga 87,500 0 0
Public (individually less than 5%) 43,568,550,005 43.98 2,179
Total 99,062,216,600 100.00 4,953
* The Bank of New York Mellon Corporation serves as the Depositary of the registered ADS holders for the Company’s ADSs.
The Company issued only 1 Series A Dwiwarna share which is held by the Government and cannot
be transferred to any party, and has a veto right in the General Meeting of Stockholders of the
Company with respect to the election and removal of the Boards of Commissioners and Directors,
issuance of new shares, and amendments of the Company’s Articles of Association.
65
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
22. OTHER EQUITY
2023 2022
Difference from the acquisition of non-controlling interests
in subsidiaries 8,364 8,358
Exchange rate translation 844 910
Effect of changes in associates' equity 386 386
Unrealized gain on available-for-sale securities 8 6
Other equity components 37 37
Total 9,639 9,697
23. REVENUES
The Group derives revenues in the following major product lines:
2023 Mobile Consumer Enterprise WIB Others Consolidated revenue
Telephone revenues
Cellular 8,022 - - 172 - 8,194
Fixed lines - 332 450 117 - 899
Total telephone revenues 8,022 332 450 289 - 9,093
Interconnection revenues 293 - - 8,774 - 9,067
Data, internet, and information
technology service revenues
Cellular data and internet 73,187 - - - - 73,187
Internet, data communication, and
information technology services 268 85 8,167 2,379 - 10,899
SMS 3,345 - 35 - - 3,380
Others 34 - 2,010 1,098 212 3,354
Total data, internet, and information
technology service revenues 76,834 85 10,212 3,477 212 90,820
Network revenues 4 - 1,212 1,266 - 2,482
IndiHome revenues - 27,263 1,522 - - 28,785
Other services
Call center service - - 1,264 - - 1,264
Manage service and terminal - - 908 12 - 920
E-health - - 761 - - 761
E-payment - - 496 - - 496
Others 138 27 1,401 318 858 2,742
Total other services 138 27 4,830 330 858 6,183
Total revenues from
contract with customer 85,291 27,707 18,226 14,136 1,070 146,430
Revenues from lessor transactions - - - 2,786 - 2,786
Total revenues 85,291 27,707 18,226 16,922 1,070 149,216
Adjustments and eliminations - 6 11 6 (668)
Total external revenues as reported in
note operating segment 85,291 27,713 18,237 16,928 402
2022 Mobile Consumer Enterprise WIB Others Consolidated revenue
Telephone revenues
Cellular 11,905 - - 147 - 12,052
Fixed lines - 757 604 175 - 1,536
Total telephone revenues 11,905 757 604 322 - 13,588
Interconnection revenues 285 - - 8,187 - 8,472
Data, internet, and information
technology service revenues
Cellular data and internet 69,006 - - - - 69,006
Internet, data communication, and
information technology services - 308 7,750 2,228 - 10,286
SMS 4,260 - 49 - - 4,309
Others 9 - 1,733 860 207 2,809
Total data, internet, and information
technology service revenues 73,275 308 9,532 3,088 207 86,410
Network revenues 3 - 1,438 937 - 2,378
IndiHome revenues - 25,232 2,788 - - 28,020
Other services
Call center service - - 1,139 25 - 1,164
Manage service and terminal - - 1,156 1 - 1,157
E-health - - 729 - - 729
E-payment 20 - 454 - - 474
Others 5 52 1,309 280 664 2,310
Total other services 25 52 4,787 306 664 5,834
Total revenues from
contract with customer 85,493 26,349 19,149 12,840 871 144,702
Revenues from lessor transactions - - - 2,604 - 2,604
Total revenues 85,493 26,349 19,149 15,444 871 147,306
Adjustments and eliminations - 5 12 (2) (632)
Total external revenues as reported in
note operating segment 85,493 26,354 19,161 15,442 239
66
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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
December 31, 2023 will be recognized as revenue during the next reporting periods. Unsatisfied
performance obligations as of December 31, 2023, which management expect to be realised within
one year is Rp9,421 billion, and more than one year is Rp5,441 billion.
The Group entered into non-cancellable lease agreements as a lessor. The lease agreements cover
leased lines, telecommunication equipment, and land and building. These leases have terms of
between 1 to 10 years. All leases include a clause to enable an upward revision of the rental charge
on an annual basis according to the prevailing market conditions. These lessees are also required to
provide a residual value guaranted on the properties.
Refer to Note 32 for details of related parties transactions.
24. PERSONNEL EXPENSES
The breakdown of personnel expenses is as follows:
2023 2022
Salaries and related benefits 9,674 9,360
Vacation pay, incentives, and other benefits 4,159 3,835
Pension and other post-employment
benefits (Note 30) 1,764 1,585
LSA expense (Note 31) 289 92
Others 41 35
Total 15,927 14,907
Refer to Note 32 for details of related parties transactions.
25. OPERATION, MAINTENANCE, AND TELECOMMUNICATION SERVICE EXPENSES
The breakdown of operation, maintenance, and telecommunication service expenses is as follows:
2023 2022
Operation and maintenance 23,057 22,746
Radio frequency usage charges (Note 35c.i) 7,412 6,510
Leased lines and Customer Premise Equipment ("CPE") 3,462 3,530
Concession fees and USO charges (Note 15) 2,836 2,601
Electricity, gas, and water 877 904
Cost of SIM cards, vouchers, and
sales of peripherals (Note 7) 797 747
Project management 489 400
Vehicles rental and supporting facilities 308 343
Insurance 269 230
Others (each below Rp100 billion) 211 173
Total 39,718 38,184
Refer to Note 32 for details of related parties transactions.
67
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
26. GENERAL AND ADMINISTRATIVE EXPENSES
The breakdown of general and administrative expenses is as follows:
2023 2022
General expenses 2,446 2,259
Professional fees 996 1,097
Allowance for expected credit losses
trade receivables (Note 5) 513 567
Training, education, and recruitment 461 371
Traveling 443 421
Meeting 334 312
Social contribution 232 218
Collection expenses 195 173
Others (each below Rp100 billion) 479 436
Total 6,099 5,854
Refer to Note 32 for details of related parties transactions.
27. TAXATION
a. Prepaid taxes
2023 2022
The Company:
Income Tax
Article 22 - Withholding tax on goods delivery
and imports 0 1
Article 23 - Withholding tax on service delivery 238 97
Subsidiaries:
Income Tax
Corporate Income Tax - 3
Article 4(2) - Final tax 1 24
Article 23 - Withholding tax on service delivery 4 16
VAT 1,669 1,323
Total prepaid taxes 1,912 1,464
Current portion (1,912) (1,464)
Non-current portion (Note 13) - -
b. Claims for tax refund
2023 2022
The Company
Corporate Income Tax 271 19
Article 21 - Individual income tax 2 3
VAT 164 155
Subsidiaries
Income Tax
Corporate income tax 699 578
Article 23 - Withholding tax on services delivery 10 8
VAT 476 238
Total claims for tax refund 1,622 1,001
Current portion (16) (380)
Non-current portion (Note 13) 1,606 621
68
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
c. Taxes payable
2023 2022
The Company:
Income taxes
Article 4(2) - Final tax 33 50
Article 21 - Individual income tax 102 79
Article 22 - Withholding tax on goods delivery
and imports 2 7
Article 23 - Withholding tax on services 24 48
Article 25 - Installment of corporate income tax 122 190
Article 26 - Withholding tax on non-resident
income 0 5
Article 29 - Corporate income tax - 575
VAT 170 244
VAT - Tax collector 163 286
616 1,484
Subsidiaries:
Income taxes
Article 4(2) - Final tax 317 287
Article 21 - Individual income tax 182 206
Article 22 - Withholding tax on goods delivery
and imports 9 5
Article 23 - Withholding tax on services 152 68
Article 25 - Installment of corporate income tax 539 260
Article 26 - Withholding tax on non-resident
income 10 262
Article 29 - Corporate income tax 1,672 1,782
VAT 399 493
VAT - Tax collector 629 525
3,909 3,888
Total taxes payable 4,525 5,372
d. The components of consolidated income tax expense (benefit) are as follows:
2023 2022
Current
The Company 1,271 2,134
Subsidiaries 7,525 7,125
8,796 9,259
Deferred
The Company 503 (103)
Subsidiaries (713) (497)
(210) (600)
Net income tax expense 8,586 8,659
69
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 years ended December 31, 2023 and 2022 are as follows:
2023 2022
Profit before income tax consolidation 40,794 36,339
Add back consolidation eliminations 24,647 28,617
Consolidated profit before income tax and eliminations 65,441 64,956
Less: profit before income tax of the subsidiaries (38,965) (38,892)
Profit before income tax attributable to the Company
before deduction of income subject to final tax 26,476 26,064
Less: income subject to final tax (642) (414)
Profit before income tax attributable to the Company
after deduction of income subject to final tax 25,834 25,650
Temporary differences:
Allowance for expected credit losses (284) (54)
Deferred installation fee 2 104
Leases 8 7
Provision for employee benefits 36 (507)
Land rights, intangible assets, and other 30 7
Net periodic pension and other post-employment
benefits costs (1,032) (131)
Difference between book value of accounting
and tax property equipment (2,006) 209
Accrued expenses and provision for inventory
obsolescence 28 68
Contract cost 63 125
Net temporary differences (3,155) (172)
Permanent differences:
Net periodic post-retirement health care benefit costs 204 212
Donations 231 239
Employee benefits 33 169
Expense related to income subject to final tax 217 168
Equity in net income of associates and subsidiaries (17,062) (15,304)
Other (income) expense from tax assesment result 1 4
Others 37 73
Net permanent differences (16,339) (14,439)
Taxable income of the Company 6,340 11,039
Current corporate income tax expense 1,204 2,098
Final income tax expense 67 36
Total current income tax expense of the Company 1,271 2,134
Current income tax expense of the subsidiaries 7,525 7,125
Total current income tax expense 8,796 9,259
70
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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:
2023 2022
Profit before income tax consolidation 40,794 36,339
Less consolidated income subject to final tax - net (11,015) (5,812)
29,779 30,527
Income tax expense calculated at the Company’s
applicable statutory tax rate 5,658 5,800
Difference in applicable statutory tax rate for
subsidiaries 623 694
Non-deductible expenses 2,016 1,992
Final income tax expense 64 36
Deferred tax adjusment (203) (508)
Unrecognized deferred tax 180 (61)
Others 248 706
Net income tax expense 8,586 8,659
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 tax 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 has applied the tax rate of 19% for the years ended December 31, 2023 and 2022.
The subsidiaries applied the tax rate of 22% for the years ended December 31, 2023 and 2022.
The Company has submitted its Annual Corporate Income Tax Return for the 2022 fiscal year on
April 28, 2023 to the Tax Authority in accordance with the applicable tax regulations.
e. Tax assessment
(i) The Company
Income tax fiscal year 2015
On April 25, 2017, the Tax Authorities issued Tax Overpayment Assessment Letter (“SKPLB”)
for corporate income tax amounting to Rp147 billion. The Company accepted tax audit decision
amounting to Rp17 billion for corporate income tax, to transfer deductible temporary
differences related to provision for incentives to fixed wireless (Flexi) subscribers’ migration
amounting to Rp42 billion from Annual Tax Return of corporate income tax fiscal year 2015 to
Annual Tax Return of corporate income tax fiscal year 2016. The accepted portion was charged
to the 2017 consolidated statements of profit or loss and other comprehensive income. On July
24, 2017, the Company filed Objection Letter to the Tax Authorities for corporate income tax
amounting to Rp210.5 billion.
On July 18, 2018, the Tax Authorities issued Decision Letter on Company’s objections for
SKPLB of corporate income tax, wherein the Tax Authorities has granted the several
Company’s objection and additional amount of overpayment which should be received
amounting to Rp76 billion. On October 10, 2018, the Company filed an appeal.
71
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
e. Tax assessments (continued)
(i) The Company (continued)
Income tax fiscal year 2015 (continued)
On July 8, 2020, the Company received appeal decision from the Tax Court regarding
corporate income tax dispute for fiscal year 2015. The Tax Court partially approved the appeal
filed by the Company. On September 9, 2020, the Company received tax refund of additional
overpayment of corporate income tax amounting to Rp90.9 billion.
On October 26, 2020, the Company received notification letter from Tax Court that Tax
Authorities filed a judicial review of corporate income tax dispute for fiscal year 2015. On
December 2, 2020, the Company filed a contra memorandum for judicial review as response
of Tax Authorities judicial review.
The entire file of the Judicial Review Memorandum submitted by the Judicial Review Applicant
(DGT) and the Judicial Review Counter Memorandum file sent by the Respondent (Telkom)
have been forwarded by the Secretariat of the Tax Court to the Supreme Court on December
13, 2022, with a letter of introduction number PKMA-1594/XII/ PAN.Wk/2022.
On May 25, 2023, the Supreme Court issued Decision number 1365/B/PK/Pjk/2023 which
rejected the DGT's request for review. Thus, all tax obligations for 2015 have permanent legal
force through the Issuance of the Supreme Court Decision and have passed the tax
determination expiration period as stipulated in the tax law.
Income Tax and VAT fiscal year 2019
On May 12, 2022, the Company received a notice of field audit for overpayment of domestic
VAT for period January to December 2019. On November 30, 2022, the Company received
SKPKB and STP WAPU VAT for the period January to December 2019 amounting to Rp6.3
billion (including a fine of Rp3.1 billion) and domestic VAT SKPLB for January to December
2019 amounting to Rp 60.8 billion. The Company agrees to accept the auditor's tax correction
and has charged fines and audit corrections to the 2022 income statement. Thus, for the 2019
VAT tax type, the Company has received a decision that is final and has permanent legal
force.
On April 12, 2023, the Company received a Field Audit Notification Letter to test compliance
with tax obligations on Corporate Income Tax and Income Tax Withholding/collection for the
2019 Fiscal Year. As of the issuance date of these financial statements, the tax audit process
is still ongoing.
Income Tax and VAT fiscal year 2020
On September 1, 2022, the Company received a notice of field audit for overpayment of
domestic VAT for period May 2020. On March 10, 2023, the Company received SKPKB and
STP VAT for May 2020 WAPU in the amount of Rp0.6 billion (including a fine of Rp0.3 billion),
SKPN and STP VAT JKP from Outside the Customs Area in the amount of Rp0.1 billion, and
SKPLB VAT In Country Period May 2020 valued at Rp0.3 billion. The Company agreed to
accept the auditor's tax correction and has charged fines and correctional sanctions to the
2023 income statement.
On March 13, 2023, the Company received a Field Audit Notification Letter for Overpayment
of VAT Tax Return for January to April, July, September and November to December 2020.
On April 6, 2023, the Company received a Field Audit Notification Letter regarding the
overpayment of VAT Tax Return for June, August and October 2020. On June 20, 2023, the
Company received Audit Notification Letter to test compliance with tax obligations regarding
Corporate Income Tax, VAT and Income Tax Withholding/Collection for the 2020 Fiscal Year.
72
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
e. Tax assessments (continued)
(i) The Company (continued)
Income Tax and VAT fiscal year 2020 (continued)
As of the issuance date of these financial statements, the Company has received Tax
Assessment Letters and Tax Collection Letters (STP) for the period of January, February, April
and July 2020, consisting of Domestic VAT SKPLB amounting to Rp39.7 billion, VAT SKPKB
and STP JKP from outside the Customs Area amounting to Rp0.6 billion and SKPKB and STP
VAT WAPU amounting to Rp0.6 billion. Meanwhile, the audit process for Corporate Income
Tax and Withholding/Collection Tax is still ongoing.
Income tax and VAT fiscal year 2021
On June 20, 2023, the Company received an Audit Notification Letter for Corporate Income
Tax, VAT and Withholding Income Tax for the 2021 Fiscal Year. As of the issuance date of
these financial statements, the audit process for all types of taxes is still ongoing.
(ii) Telkomsel
Income tax and VAT fiscal year 2014
In May 2019, Telkomsel received tax underpayment assessment letters for the 2014 CIT, VAT
and WHT in total amount of Rp151 billion (including penalty of Rp55 billion). Telkomsel
partially accepted the portion of Rp16 billion and charged it as expense in 2019 consolidated
statement of profit or loss. Telkomsel also paid a portion of Rp99 billion out of the remaining
underpayment and recorded it as claim for tax refund. In August 2019, Telkomsel filed an
objection to the Tax Authorities for full amount of Rp134 billion.
In July 2020, Telkomsel received an objection decision letter which accepted Telkomsel’s
objection of Rp27 billion and rejected the remaining Rp107 billion. Telkomsel received the tax
refund of Rp27 billion in August 2020.
In September 2020, Telkomsel filed an appeal to the Tax Court for the 2014 CIT, WHT and
VAT assessments amounting to Rp107 billion.
In April 2022, Telkomsel received the Tax Court’s Verdict for the 2014 underpayment of WHT
and VAT, which partially accepted Telkomsel’s appeal amounting to Rp66 billion. Telkomsel
received the refund in April, May and June 2022, and charged the rejected portion of Rp4
billion in the 2022 consolidated statement of profit or loss.
In August 2022, Telkomsel received notifications that the Tax Authorities had filed a judicial
review to the Supreme Court (“SC”) for the 2014 VAT amounting to Rp8 billion. Telkomsel had
since submitted its contra memorandums for the Judicial Review in September 2022.
In February and March 2023, the SC fully rejected the judicial review claimed by the Tax
Authorities on tax periods of 2014 VAT amounting to Rp8 billion. Thus, these cases have been
legally enforced (in-kracht) and no additional tax payables for fiscal year 2014.
As at the authorization date of these consolidated financial statements, the result of appeal for
CIT have not yet been received.
Income tax and VAT fiscal year 2015
In August 2019, Telkomsel received the tax underpayment assessment letters for the 2015
CIT, VAT and WHT in total amount of Rp385 billion (including penalty of Rp129 billion).
Telkomsel accepted the portion of Rp35 billion, which was paid and charged as expense in
the 2019 consolidated statement of profit or loss. Telkomsel also paid the remaining amount
of underpayment and recorded it as claim for tax refund. In September 2019, Telkomsel filed
an objection to the Tax Authorities for Rp350 billion.
73
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
e. Tax assessments (continued)
(ii) Telkomsel (continued)
Income tax and VAT fiscal year 2015 (continued)
In July 2020, Telkomsel received an objection decision letter from Tax Authorities that rejected
all Company’s objection.
In September 2020, Telkomsel filed an appeal to the Tax Court for the 2015 CIT, WHT and
VAT assessments amounting to Rp350 billion.
In April and May 2022, Telkomsel received the Tax Court’s Verdict for the 2015 underpayment
of WHT and VAT which partially accepted the Telkomsel’s appeal amounting to Rp53 billion.
Telkomsel received the refund in April and May 2022, and charged the rejected portion of Rp3
billion in the 2022 consolidated statement of profit or loss.
In August 2022, Telkomsel received notifications that the Tax Authorities had filed a judicial
review to the SC for the 2015 VAT amounting to Rp24 billion. Telkomsel had since submitted
its contra memorandums for the Judicial Review in August 2022.
During February to May 2023, Telkomsel received decision letters from SC, which fully
rejected the Judicial Review claimed by the Tax Authorities for the tax periods of 2015 fiscal
year VAT amounting to Rp24 billion. Telkomsel has received all final decisions, which are
legally enforced (in-kracht) and thus, there are no additional tax payables for 2015 fiscal year
VAT.
As at the authorization date of these consolidated financial statements, the results of appeal
for CIT has not yet been received.
Income tax and VAT fiscal year 2018
In September 2022, Telkomsel received tax underpayment assessment letters for the 2018
CIT, VAT and WHT amounting to Rp160 billion (including penalty of Rp49 billion) in total. At
the same time, Telkomsel also received tax assessment letters for 2018 VAT confirming tax
overpayments in the amount of Rp40 billion.
On October 14, 2022, Telkomsel paid and accepted a portion of the CIT tax assessment of
Rp0.16 billion, and charged it as expense in the 2022 consolidated statement of profit or loss.
Telkomsel also paid the remaining amount of tax assessment for CIT and VAT amounting to
Rp57 billion, after netting-off with overpayment of Rp40 billion. Telkomsel recorded it as claim
for tax refund in the consolidated statement of financial position.
On December 13, 2022, Telkomsel filed an objection to the Tax Authorities amounting to
Rp120 billion for CIT, VAT and WHT.
In October 2023, Telkomsel received objection decision letters from Tax Authorities, which
partially accepted Telkomsel’s objection for WHT and VAT as well as rejected the entire
Telkomsel’s objection for CIT.
Telkomsel has fully received tax refunds amounting to Rp22 billion for WHT and VAT in
October 2023 and charged the rejected portion of WHT and VAT amounting to Rp0.2 billion
in total as expense in 2023 consolidated statement of profit or loss. Telkomsel has submitted
an appeal for entire portion of CIT in January 2024.
74
Page 83
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
f. Deferred tax assets and liabilities
The details of the Group's deferred tax assets and liabilities are as follows:
Deferred tax asset and liabilities (Charged) credited to
in financial position profit or loss
2023 2022 2023 2022
The Company
Allowance for expected credit losses 831 885 (54) (10)
Net periodic pension and other
post-employment benefit costs 822 981 (196) (25)
Difference between accounting and tax
bases of property and equipment 430 806 (285) 175
Provision for employee benefits 299 292 7 (96)
Deferred installation fee 21 203 1 20
Land rights, intangible assets and others 29 23 6 1
Accrued expenses and provision for
inventory obsolescence 86 85 5 13
Leases - (1) 1 1
Contract cost 14 (49) 12 24
Total deferred tax assets - net 2,532 3,225 (503) 103
Telkomsel
Provision for employee benefits 1,385 1,220 168 33
Allowance for expected credit losses 205 144 61 (35)
Leases 554 468 86 (207)
Contract liabilities 400 - 217 -
Fair value measurement of financial
instruments - (7) 7 542
Difference between accounting and tax bases of
property and equipment (1,228) (1,445) 122 178
License amortization (171) (146) (25) 6
Contract cost (46) - 5 -
Other financial instruments (165) (119) (45) (27)
Deferred tax assets (liabilities) of Telkomsel - net 934 115 596 490
Deferred tax assets of the other subsidiaries - net 704 777 (70) 164
Deferred tax liabilities of the other subsidiaries - net (841) (1,023) 187 (157)
Deferred tax expense (income) 210 600
Total deferred tax assets - net 4,170 4,117
Total deferred tax liabilities - net (841) (1,023)
As of December 31, 2023 and 2022 the aggregate amounts of temporary differences associated
with investments in subsidiaries and associated companies, for which deferred tax liabilities are
not recognized were Rp79,794 billion and Rp23,915 billion, respectively.
Realization of the deferred tax assets is dependent upon the Group’s capability in generating future
profitable operations. Although realization is not assured, the Group believes that it is probable that
these deferred tax assets will be realized through reduction of future taxable income when
temporary differences reverse. The amount of deferred tax assets is considered realizable,
however it can be reduced if actual future taxable income is lower than estimate.
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 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.
75
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
g. Administration (continued)
In June 2023, the Government issued Minister of Finance Regulation No. 66/PMK.03/2023
concerning 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.
28. BASIC EARNINGS PER SHARE
Basic earnings per share is computed by dividing profit for the year attributable to owners of the parent
company amounting to Rp24,560 billion and Rp20,753 billion by the weighted average number of
shares outstanding during the period totaling 99,062,216,600 shares for the year ended December
31, 2023 and 2022, respectively. The weighted average number of shares takes into account the
weighted average effect of changes in treasury stock transaction during the period.
Basic earnings per share amounting to Rp247.92 and Rp209.49 (in full amount) for the year ended
December 31, 2023 and 2022, respectively. The Company does not have potentially dilutive financial
investments for the year ended December 31, 2023 and 2022.
29. CASH DIVIDENDS AND GENERAL RESERVE
Pursuant to the AGM of Stockholders of the Company stated in Notarial Deed No. 29 dated
May 27, 2022 of Ashoya Ratam, S.H., M.Kn., the Company’s stockholders approved the distribution
of cash dividend for 2021 amounting to Rp14,856 billion (Rp149.97 per share). The Company paid
cash dividend on June 30, 2022.
Pursuant to the AGM of Stockholders of the Company 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.
Under the Limited Liability Company Law, the Company is required to establish a statutory reserve
amounting to at least 20% of its issued and paid-up capital.
The balance of the appropriated retained earnings of the Company as of December 31, 2023 and
2022 is Rp15,337 billion, respectively.
76
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS
The details of pension and other post-employment benefit liabilities are as follows:
Notes 2023 2022
Pension benefit and other post-employment
benefit obligations
Pension benefit
The Company - funded 30a.i.a
Defined pension benefit obligation 30a.i.a.i 3,666 4,234
Additional pension benefit obligation 30a.i.a.ii 44 44
The Company - unfunded 30a.i.b 258 522
Telkomsel 30a.ii 4,726 4,275
Projected pension benefit obligations 8,694 9,075
Net periodic post-employment health care
benefit 30b 1,470 -
Other post-employment benefit 30c 244 268
Long service employee benefit 30d 1 1
Obligation under the Labor Law 30e 1,005 928
Total 11,414 10,272
The details of net pension benefit expense recognized in the consolidated statements of profit or loss
and other comprehensive income is as follows:
Notes 2023 2022
Pension benefit cost
The Company - funded 30a.i.a
Defined pension benefit obligation 30a.i.a.i 629 577
Additional pension benefit obligation 30a.i.a.ii 3 37
The Company - unfunded 30a.i.b 54 58
Telkomsel 30a.ii 633 596
Total periodic pension benefit cost 24 1,319 1,268
Net periodic post-employment health care
benefit cost 24,30b 205 213
Other post-employment benefit cost 24,30c 22 25
Long service employee benefit cost 24,30d 1 1
Obligation under the Labor Law 24,30e 217 78
Total 1,764 1,585
77
Page 86
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The amounts recognized in OCI are as follows:
Notes 2023 2022
Defined benefit plan actuarial gain (loss)
The Company - funded 30a.i.a
Defined pension benefit obligation 30a.i.a.i (524) 467
Additional pension benefit obligation 30a.i.a.ii 1 (7)
The Company - unfunded 30a.i.b 246 55
Telkomsel 30a.ii 91 218
Others 0 1
Post-employment health care benefit cost 30b (1,265) 851
Other post-employment benefit 30c (2) 14
Obligation under the Labor Law 30e 41 13
Sub-total (1,412) 1,612
Deferred tax effect at the applicable tax rates 27f 23 (148)
Defined benefit plan acturial gain (loss) -
net of tax (1,389) 1,464
The following table presents the changes in projected post-employment health care benefit provision,
changes in post-employment health care benefit plan assets, funded status of the post-employment
health care benefit plan, and net amount recognized in the Company’s consolidated statement of
financial position as of December 31, 2023 and 2022:
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 - 0 - 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
FMC's transfer program (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
78
Page 87
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The following table presents the changes in projected post-employment health care benefit provision,
changes in post-employment health care benefit plan assets, funded status of the post-employment
health care benefit plan, and net amount recognized in the Company’s consolidated statement of
financial position as of December 31, 2023 and 2022 (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, 2022 23,838 (18,947) 5,020 (832) 13,416 (12,778) 9,717
Service costs 178 - 326 - - - 504
Interest costs (income) 1,635 (1,347) 328 (58) 982 (933) 607
Plan administration cost - 63 - - - 164 227
Additional welfare benefits 65 - - - - - 65
Cost recognized in the consolidated
statement of profit or loss 1,878 (1,284) 654 (58) 982 (769) 1,403
Actuarial (gain) loss on:
Experience adjustments (737) - (1) - (730) - (1,468)
Changes in demographic assumptions - - (1) - - - (1)
Changes in financial assumptions (30) - (67) - (136) - (233)
Return on plan assets
(excluding amount included in
net interest expense) - 300 (186) 37 - (69) 82
Changes in asset ceiling - - - - - 84 84
Cost recognized in OCI (767) 300 (255) 37 (866) 15 (1,536)
Employer’s contributions - (719) - - - - (719)
Pension plan participants’ contributions 19 (19) - - - - -
Benefits paid from plan assets (1,767) 1,767 (291) - - - (291)
Benefits paid by employer (65) - - - (654) 654 (65)
Balance, December 31, 2022 23,136 (18,902) 5,128 (853) 12,878 (12,878) 8,509
Projected pension benefit
obligation at end of year 4,234 4,275 - 8,509
The following table presents the changes in projected post-employment health care benefit provision,
changes in post-employment health care benefit plan assets, funded status of the post-employment
health care benefit plan, and net amount recognized in the Company’s consolidated statement of
financial position as of December 31, 2023 and 2022:
The Company
The Company and its subsidiaries
Other
post- Long
Additional employment service Obligations
pension benefit benefit employee under
Unfunded obligations obligations benefit the Labor Law Total
Balance, January 1, 2023 522 44 268 1 928 1,763
Service costs 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)
FMC's transfer program (19) 0 (10) - 3 (26)
Balance, December 31, 2023 258 44 244 1 1,005 1,552
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The following table presents the changes in projected post-employment health care benefit provision,
changes in post-employment health care benefit plan assets, funded status of the post-employment
health care benefit plan, and net amount recognized in the Company’s consolidated statement of
financial position as of December 31, 2023 and 2022 (continued):
The Company
The Company and its subsidiaries
Other
post- Long
Additional employment service Obligations
pension benefit benefit employee under
Unfunded obligations obligations benefit the Labor Law Total
Balance, January 1, 2022 613 - 300 4 926 1,843
Service costs 24 37 8 1 78 148
Interest costs 34 - 17 - - 51
Cost recognized in the consolidated
statement of profit or loss 58 37 25 1 78 199
Actuarial gain recognized in OCI (55) 7 (14) - (13) (75)
Benefits paid by employer (94) - (43) (4) (63) (204)
Balance, December 31, 2022 522 44 268 1 928 1,763
a. Pension benefit costs
i. The Company
(a) Funded pension plan
(i) Defined pension benefit obligation
The Company sponsors a defined benefit pension plan for employees with permanent
status prior to July 1, 2002. The plan is governed by the pension laws in Indonesia and
managed by Telkom Pension Fund (“Dana Pensiun Telkom” or “Dapen”). Pension Fund
Management in accordance with the Pension Fund and Investment Directives
Regulations determined by the Founder is carried out by the Board of Management.
The Board of Management is monitored by the Oversight Board consisting of
representatives of the Company and participants.
The pension benefits are paid based on the participating employees’ latest basic salary
at retirement and the number of years of their service. The participating employees
contribute 18% (before March 2003: 8.4%) of their basic salaries to the pension fund.
The Company made contributions to the pension fund amounted to Rp1,635 billion and
Rp719 billion, for the years ended December 31, 2023 and 2022, respectively.
Risks exposed to defined benefit programs are risks such as asset volatility and
changes in bond yields. The project liabilities are calculated using a discount rate that
refers to the level of government bond yields, if the return on program assets is lower,
it will result in a program deficit. A decrease in the yield of government bonds will
increase the program liabilities, although this will be offset in part by an increase in the
value of the program bonds held. The Company ensures that the investment position is
set within the framework of asset-liability matching ("ALM") that has been formed to
achieve long-term results that are in line with the liabilities in the defined benefit pension
plan. Within the ALM framework, the Company's objective is to adjust its pension assets
and liabilities by investing in a well diversified portfolio to produce an optimal rate of
return, taking into account the level of risk. Investment in the program has been well
diversified, so that one investment's poor performance will not have a material impact
on all asset groups.
80
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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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 December 31, 2023 and 2022, plan assets consist of:
2023 2022
Quoted in Quoted in
active market Unquoted active market Unquoted
Cash and cash equivalents 559 - 1,320 -
Equity instruments:
Financials 1,799 - 1,638 -
Consumer non-cyclicals 98 - 505 -
Basic material 276 - 271 -
Infrastructures 741 - 639 -
Energy 161 - 141 -
Technology 41 - 89 -
Industrials 267 - 315 -
Consumer cyclicals 516 - 115 -
Properties and real estate 112 - 98 -
Healthcare 209 - 208 -
Transportation and logistic 7 - 8 -
Equity-based mutual fund 376 - 410 -
Fixed income instruments:
Corporate bonds - 2,447 - 3,117
Government bonds 10,257 - 7,884 -
Fixed income mutual funds - 100 - 122
Midterm notes - 99 - 100
Asset-backed securities - 13 - 30
Sukuk - 1,054 - 1,090
Non-public equity:
Direct placement - 371 - 368
Property - 186 - 187
Others - 363 - 247
Total 15,419 4,633 13,641 5,261
Pension plan assets include Series B shares issued by the Company with fair values
totalling to Rp457 billion and Rp336 billion, representing 2.28% and 1.78% of total plan
assets as of December 31, 2023 and 2022, respectively, and bonds issued by the
Company with fair value totalling to Rp345 billion and Rp348 billion representing 1.72%
and 1.84% of total plan assets as of December 31, 2023 and 2022, respectively.
The expected return is determined based on market expectation for returns over the
entire life of the obligation by considering the portfolio mix of the plan assets. The actual
return on plan assets was Rp1,768 billion and Rp984 billion for the years ended
December 31, 2023 and 2022, respectively. Based on the Company’s policy issued on
January 14, 2014 regarding Dapen’s Funding Policy, the Company will not contribute
to Dapen when Dapen’s Funding Sufficiency Ratio (“FSR”) is above 105%. Based on
Dapen’s financial statement as of December 31, 2023, Dapen’s FSR is below 105%.
Therefore, the Company will contribute to the defined benefit pension plan.
81
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 2023 and 2022, the
Company provided employee welfare benefit to pensioners and pension beneficiaries
who entered their retirement period before June 30, 2002 amounting to Rp50 billion and
Rp65 billion,respectively.
The actuarial valuation for the defined benefit pension plan was performed based on
the measurement date as of 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 annual contribution period which is calculated proportionally according to
the amount received.
The actuarial valuation for additional pension benefit plan was performed based on the
measurement date as of 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
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 December 31, 2023, 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 Rp50 billion and Rp48 billion, for the years ended
December 31, 2023 and 2022, respectively.
Since 2007, the Company has provided pension benefit based on uniformization for both
participants prior to and from April 20, 1992 effective for employees retiring beginning
February 1, 2009. In 2010, the Company replaced the uniformization with Manfaat Pensiun
Sekaligus (“MPS”). MPS is given to those employees reaching retirement age, upon death
or upon becoming disabled starting from February 1, 2009.
The Company also provides benefits to employees during a pre-retirement period in which
they are inactive for 6 months prior to their normal retirement age of 56 years, known as
pre-retirement benefits (Masa Persiapan Pensiun or “MPP”). During the pre-retirement
period, the employees still receive benefits provided to active employees, which include,
but are not limited to, regular salary, health care, annual leave, bonus, and other benefits.
Since April 1, 2012, the employee is required to file a request for MPP and if the employee
does not file the request, such employee is required to work until the retirement date.
The actuarial valuation for the 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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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
year ended December 31, 2023 was amounting to Rp20.50 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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 years ended December 31, 2023 and 2022. As of December 31, 2023 and 2022, plan assets
consists of:
2023 2022
Quoted in Quoted in
active market Unquoted active market Unquoted
Cash and cash equivalents 391 - 1,085 -
Equity instruments:
Financials 1,465 - 1,368 -
Consumer non-cyclicals 115 - 114 -
Basic material 260 - 264 -
Infrastructures 617 - 598 -
Energy 156 - 221 -
Technology 24 - 63 -
Industrials 261 - 185 -
Consumer cyclicals 394 - 457 -
Properties and real estate 110 - 95 -
Healthcare 147 - 233 -
Transportation and logistic 5 - 3 -
Equity-based mutual funds 434 - 1,035 -
Fixed income instruments:
Government obligations 1,269 - 82 -
Corporate obligations 6 - - -
Fixed income mutual funds 7,053 - 6,761 -
Unlisted shares:
Private placement - 447 - 398
Total 12,707 447 12,564 398
Yakes Telkom plan assets also include Series B shares issued by the Company with fair value
totalling Rp321 billion and Rp228 billion, representing 2.45% and 1.76% of total plan assets as of
December 31, 2023 and 2022, respectively. Bonds issued by The Company with a fair value of
Rp6 billion each represent 0.04% of total assets as of 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 Rp987 billion
and Rp839 billion for the years ended December 31, 2023 and 2022, 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
Page 94
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 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 6.50% 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 December 31, 2023 and 2022 amounted to Rp1 billion, respectively. The related
long service employee benefits cost charged to expense amounted to Rp1 billion for the years
ended December 31, 2023 and 2022, respectively.
e. Obligation under the Labor Law
Under Law No. 11 Year 2020, the Group is required to provide minimum pension benefits, if not
covered yet by the sponsored pension plans, to its employees upon retirement. Total obligation
recognized as of December 31, 2023 and 2022 amounted to Rp1,005 billion and
Rp928 billion, respectively. The related pension employee benefits cost charged to expense
amounted to Rp217 billion and Rp78 billion for the years ended December 31, 2023 and 2022,
respectively. The actuarial gain in OCI amounted to Rp41 billion and Rp13 billion for the years
ended December 31, 2023 and 2022, respectively.
f. Maturity Profile of Defined Benefit Obligation (“DBO”)
The timing of benefits payments and weighted average duration of DBO for 2023 and 2022 are as
follows:
Expected Benefits Payment
The Company
Funded
Defined Additional Post-employment Other post- Post-employment
pension benefit pension benefit health care employment benefits
Time Period obligation obligation Unfunded Telkomsel benefits benefits UUCK (Telkom)
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
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 2023 and 2022 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)
2022
Within next 10 years 21,232 40 705 5,111 8,092 324 59
Within 10-20 years 16,485 31 229 11,178 12,746 123 414
Within 20-30 years 10,414 18 430 7,827 12,019 83 497
Within 30-40 years 4,209 6 96 473 5,491 6 80
Within 40-50 years 882 1 - - 970 - -
Within 50-60 years 77 - - - 59 - -
Within 60-70 years 2 - - - 6 - -
Within 70-80 years - - - - 1 - -
Weighted average
duration of DBO 8.48 years 8.48 years 5.52 years 9.45 years 12.40 years 4.62 years 11.69 years
g. Sensitivity Analysis
As of December 31, 2023 and 2022, 1% change in discount rate and rate of compensation would
have effect on DBO, are as follows:
Discount Rate Rate of Compensation
1% Increase 1% Decrease 1% Increase 1% Decrease
Increase (decrease) in amounts Increase (decrease) in amounts
Sensitivity
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)
2022
Funded:
Defined pension benefit obligation (1,948) 2,291 268 255
Unfunded (24) 27 29 (27)
Telkomsel (430) 491 536 (477)
Post-employment health care benefits (1,413) 1,703 1,629 1,380
Other post-employment benefits (12) 13 - -
Post-employment benefits UUCK (Telkom) (8) 10 27 (24)
87
Page 96
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 Rp1,153 billion and Rp1,031 billion as of
December 31, 2023 and 2022, respectively. The related benefit costs charged to expense amounted
Rp289 billion and Rp92 billion for the years ended December 31, 2023 and 2022, 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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 Taspen (Persero) (“Taspen”) Entity under common control Internet and data service revenues and other
telecommunication service revenues
PT Perusahaan Listrik Negara Entity under common control Internet and data service revenues, other
(“PLN”) telecommunication service revenues, and
electricity expenses
PT Asuransi Jasa Indonesia Entity under common control Fixed assets insurance expenses and personal
(“Jasindo”) insurance expenses
PT BNI Life Insurance (“BNI Life Entity under common control Medical expenses
Insurance”)
PT Mandiri Sekuritas (“Mandiri Entity under common control Consultant expenses
Sekuritas”)
Bahana TCW Entity under common control Mutual funds
BTN Entity under common control Cash in bank and time deposits
BSI Entity under common control Cash in bank and time deposits
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 Omni Inovasi Indonesia Tbk. Associated company Distribution of SIM cards and pulse reload
(“Omni Inovasi Indonesia”) voucher
PT Fintek Karya Nusantara Associated company Marketing expenses and distribution of SIM
(“Finarya”) cards and pulse reload voucher
Indonusa Associatedcompany
Associated company Internet and data service revenues and other
telecommunication service revenues
PT Kereta Cepat Indonesia China 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 December 31, 2023 and 2022 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 December 31, 2023 and 2022, the Group
recorded an increase (decrease) of impairment loss from trade receivables of related party amounted to
Rp47 billion and Rp(57) 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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
b. Significant transactions with related parties
2023 2022
% of total % of total
Amount revenues Amount revenues
Revenues
Majority Stockholder
Ministry of Finance 174 0.12 199 0.14
Entities under common control
Indosat 2,195 1.47 1,923 1.31
Pertamina 755 0.51 752 0.51
BNI 509 0.34 493 0.33
BRI 190 0.13 104 0.07
Bank Mandiri 156 0.10 180 0.12
Taspen 106 0.07 56 0.04
Others (each below Rp100 billion) 900 0.60 1,369 0.93
Sub-total 4,811 3.22 4,877 3.31
Other related entities 130 0.09 52 0.04
Associated companies 8 0.01 6 0.00
Total 5,123 3.44 5,134 3.49
2023 2022
% of total % of total
Amount expenses Amount expenses
Expenses
Entities under common control
PLN 2,602 2.49 2,473 2.43
Indosat 566 0.54 537 0.53
Jasindo 198 0.19 296 0.29
BNI Life Insurance 143 0.14 - -
Mandiri Sekuritas 109 0.10 - -
Others (each below Rp100 billion) 272 0.26 228 0.22
Sub-total 3,890 3.72 3,534 3.47
Other related entities
Padi UMKM 561 0.54 626 0.62
Others (each below Rp100 billion) 94 0.09 98 0.10
Sub-total 655 0.63 724 0.72
Associated companies
Finarya 126 0.12 110 0.11
Others (each below Rp100 billion) 0 0.00 37 0.04
Sub-total 126 0.12 147 0.15
Total 4,671 4.47 4,405 4.34
2023 2022
% of total % of total
Amount finance income Amount finance income
Finance income
Entities under common control
State-owned banks 312 29.41 459 52.28
Total 312 29.41 459 52.28
2023 2022
% of total % of total
Amount finance cost Amount finance cost
Finance cost
Majority stockholder
Ministry of Finance 5 0.11 10 0.25
Entities under common control
State-owned banks 1,111 23.88 1,004 24.89
Sarana Multi Infrastruktur 74 1.59 109 2.70
Total 1,190 25.58 1,123 27.84
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
b. Significant transactions with related parties (continued)
2023 2022
% of total % of total
Amount purchases Amount purchases
Purchase of property
and equipments
Entities under common control 64 0.19 121 0.35
Total 64 0.19 121 0.35
2023 2022
% of total % of total
Amount revenues Amount revenue
Distribution of SIM
card and voucher
Associated companies
Omni Inovasi Indonesia 467 0.31 981 0.67
Finarya 159 0.11 141 0.10
Total 626 0.42 1,122 0.77
c. Balance of accounts with related parties
2023 2022
% of total % of total
Amount assets Amount assets
Cash and cash equivalents
(Note 3) 19,024 6.63 23,328 8.48
Other current financial
asset (Note 4) 800 0.28 400 0.15
Trade receivables
(Note 5) 1,918 0.67 1,620 0.59
Contract assets
Majority stockholder
Ministry of Finance 36 0.01 24 0.01
Entities under common control 252 0.09 248 0.09
Associated companies 1 0.00 1 0.00
Other related entities 1 0.00 1 0.00
Total 290 0.10 274 0.10
Other current asset 53 0.02 98 0.04
Other non-current asset 5 0.00 15 0.01
2023 2022
% of total % of total
Amount liabilities Amount liabilities
Trade payables (Note 15)
Majority stockholder
Ministry of Finance 18 0.01 0 0.00
Entities under common control
State-owned enterprises 302 0.23 197 0.16
Indosat 129 0.10 140 0.11
Others 12 0.01 37 0.03
Sub-total 443 0.34 374 0.30
Associated companies 40 0.03 - -
Other related entities 84 0.06 57 0.05
Total 585 0.44 431 0.35
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
c. Balance of accounts with related parties (continued)
2023 2022
% of total % of total
Amount liabilities Amount liabilities
Accrued expenses
Majority stockholder
Ministry of Finance 1 0.00 1 0.00
Entities under common control
State-owned enterprises 137 0.10 57 0.05
State-owned banks 39 0.03 74 0.06
Others 0 0.00 2 0.00
Sub-total 176 0.13 133 0.11
Total 177 0.13 134 0.11
Contract liabilities
Majority stockholder
Ministry of Finance 18 0.01 34 0.03
Entities under common control
State-owned enterprises 312 0.24 170 0.13
Others 1 0.00 0 0.00
Sub-total 313 0.24 170 0.13
Associated companies 13 0.01 2 0.00
Other related entities
KCIC 1,133 0.87 - -
Others 2 0.00 3 0.00
Sub-total 1,135 0.87 3 0.00
Total 1,479 1.13 209 0.16
Customer deposits 19 0.01 19 0.02
Short-term bank loans (Note 18) 4,916 3.77 4,462 3.54
Two-step loans (Note 19a) 84 0.06 209 0.17
Long-term bank loans (Note 19c) 11,099 8.51 11,284 8.96
Other borrowings (Note 19d) 362 0.28 1,314 1.04
d. Significant agreements with related parties
i. The Government
The Company obtained two-step loans from the Government (Note 19a).
ii. Indosat
The Company has an agreement with Indosat to provide international telecommunications
services to the public.
The Company has also entered into an interconnection agreement between the Company’s
fixed line network (Public Switched Telephone Network or “PSTN”) and Indosat’s Global
System for Mobile (“GSM”) cellular telecommunications network in connection with the
implementation of Indosat Multimedia Mobile services and the settlement of related
interconnection rights and obligations.
The Company also has an agreement with Indosat for the interconnection of Indosat's GSM
mobile cellular telecommunications network with the Company's PSTN, which enable each
party’s customers to make domestic calls between Indosat’s GSM mobile network and the
Company’s fixed line network, as well as allowing Indosat’s mobile customers to access the
Company’s IDD service by dialing “007”.
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
d. Significant agreements with related parties (continued)
ii. Indosat (continued)
The Company has been handling customer billings and collections for Indosat. Indosat is
gradually taking over the activities and performing its own direct billing and collection. The
Company has received compensation from Indosat computed at 1% of the collections made
by the Company starting from January 1, 1995, as well as the billing process expenses which
are fixed at a certain amount per record. On December 11, 2008, the Company and Indosat
agreed to implement IDD service charge tariff which already took into account the
compensation for billing and collection. The agreement is valid and effective in the current year
and can be applied until a new agreement becomes available.
On December 18, 2017, the Company and Indosat signed amendments to the interconnection
agreements for the fixed line networks (local, long distance direct connection and international)
and mobile network for the implementation of the cost-based tariff obligations under the MoCI
Regulation No.8/Year 2006. These amendments took effect starting on January 1, 2018.
Telkomsel also entered into an agreement with Indosat for the provision of international
telecommunications services to its GSM mobile cellular customers.
The Company provides leased lines to Indosat and its subsidiaries, namely PT Indosat Mega
Media and PT Aplikanusa Lintasarta (“Lintasarta”). The leased lines can be used by these
companies for telephone, telegraph, data, telex, facsimile, or other telecommunication
services.
iii. Others
The Company entered into an agreement with Lintasarta for the use of satellite transponders
or the Company's subscribed circuit telecommunication satellite frequency channels.
e. Remuneration of key management and supervisory personnel
Key management personnel consists of the Directors of the Company and supervisory personnel
consists of Board of Commissioners.
The Company provides remuneration in the form of salaries/honorarium and facilities to support
the governance and oversight duties of the Board of Commissioners and the leadership and
management duties of the Directors. The total of such remuneration is as follow:
2023 2022
% of total % of total
Amount expenses Amount expenses
Board of Directors 475 0.46% 401 0.39%
Board of Commissioners 179 0.17% 164 0.16%
The amounts disclosed in the table are the amounts recognized as an expense during the reporting
periods.
93
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 a group basis and are not separately monitored and allocated to operating segments.
Segment revenues dan expenses include transactions between operating segments and are
accounted at prices that management believes represent market prices.
2023
Adjustment
Total and Total
Mobile Consumer Enterprise WIB Others segment elimination consolidated
Segment result
Revenues
External revenues 85,291 27,713 18,237 16,928 402 148,571 645 149,216
Inter-segment revenues 3,628 (1,106) 26,505 20,333 2,014 51,374 (51,374) -
Total segment revenues 88,919 26,607 44,742 37,261 2,416 199,945 (50,729) 149,216
Segment results 28,693 7,971 602 9,386 (1,188) 45,464 (4,670) 40,794
Other information
Capital expenditures (12,370) (6,434) (5,073) (8,964) (11) (32,852) (116) (32,968)
Depreciation and amortization (21,248) (5,828) (3,884) (6,135) (18) (37,113) 4,450 (32,663)
Provision recognized in
current year (231) (463) 173 (11) (5) (537) 24 (513)
2022
Adjustment
Total and Total
Mobile Consumer Enterprise WIB Others segmen elimination consolidated
Segment result
Revenues
External revenues 85,493 26,354 19,161 15,442 239 146,689 617 147,306
Inter-segment revenues 3,344 195 24,646 19,658 2,486 50,329 (50,329) -
Total segment revenues 88,837 26,549 43,807 35,100 2,725 197,018 (49,712) 147,306
Segment results 26,122 7,579 831 8,925 (1,063) 42,394 (6,055) 36,339
Other information
Capital expenditures (12,343) (9,038) (5,983) (6,612) (5) (33,981) (175) (34,156)
Depreciation and amortization (21,028) (6,738) (3,999) (5,805) (19) (37,589) 4,334 (33,255)
Provision recognized in
current year (128) (434) (45) 34 (5) (578) 11 (567)
Adjustments and eliminations:
a. Revenue reconciliation
2023 2022
Total segment revenues 199,945 197,018
Revenue from other non-operating segments 645 617
Adjustment and inter-segment elimination (51,374) (50,329)
Consolidated revenues 149,216 147,306
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
33. OPERATING SEGMENTS (continued)
b. Segment results reconciliation
2023 2022
Total segment results 45,464 42,394
Loss from other non-operating segments (2,679) (1,772)
Adjustment and inter-segment elimination 1,599 (1,041)
Finance income 1,061 878
Finance cost (4,652) (4,033)
Share of profit (loss) of long-term investment in associates 1 (87)
Consolidated profit before income tax 40,794 36,339
c. Capital expenditure reconciliation
2023 2022
Total segment capital expenditure (32,852) (33,981)
Capital expenditure from
other non-operating segments (116) (175)
Consolidated capital expenditure (32,968) (34,156)
d. Depreciation and amortization reconciliation
2023 2022
Total segment depreciation and amortization (37,113) (37,589)
Depreciation and amortization from
other non-operating segments (250) (263)
Adjustment and inter-segment elimination 4,700 4,597
Consolidated depreciation and amortization (32,663) (33,255)
e. Provision recognized in current year reconciliation
2023 2022
Total segment provision (537) (578)
Provision recognized from other
non-operating segments (5) (7)
Adjustment and inter-segment elimination 29 18
Consolidated provision recognized
in current year (513) (567)
Geographic information:
2023 2022
External revenues
Indonesia 141,157 139,983
Abroad 8,059 7,323
Total 149,216 147,306
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 year ended
December 31, 2023 and 2022.
2023 2022
Non-current operating assets
Indonesia 186,554 178,424
Abroad 2,932 3,207
Total 189,486 181,631
Non-current operating assets for segmen reporting purpose consist of property and equipment and
intangible assets.
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
34. TELECOMMUNICATIONS SERVICE TARIFFS
Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating
telecommunications network and/or services are determined by providers based on the tariff type,
structure, and with respect to the price cap formula set by the Government.
a. Fixed line telephone tariffs
The Government has issued a new adjustment tariff formula which is stipulated in
MoCI Regulation No. 5/2021 dated March 31, 2021 concerning “Telecommunication Operation”.
This Decree replaced the previous Decree No. 15/PER/M.KOMINFO/4/2008 dated April 30, 2008.
Under the Decree, tariff structure for basic telephony services connected through fixed line network
consists of the following:
i. Activation fee
ii. Monthly subscription charges
iii. Usage charges, and
iv. Additional facilities fee.
b. Mobile cellular telephone tariffs
On March 31, 2021, MoCI issued MoCI Regulation No. 5/2021, which provides guidelines to
determine cellular tariffs with a formula consisting of network element cost and retail services
activity cost.
Under MoCI Regulation No. 5/2021, cellular tariffs for the operation of telecommunication services
connected through mobile cellular network consist of the following:
(i) Basic telephony services tariff
(ii) Roaming tariff, and/or
(iii) Multimedia services tariff
with the following traffic structure:
(i) Activation fee
(ii) Monthly subscription charges, and/or
(iii) Usage charges
c. Interconnection tariffs
The Indonesian Telecommunication Regulatory Body (“ITRB”), in its letter No. 262/BRTI/XII/2011
dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost basis
with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all telecommunication
provider operators.
Based on letter No.118/KOMINFO/DJPPI/PI.02.04/01/2014 dated January 30, 2014 of the Director
General of Post and Informatics, the Director General of Post and Informatics decided to implement
new interconnection tariff effective from February 1, 2014 until December 31, 2016, subject to
evaluation on an annual basis. Pursuant to the Director General of Post and Informatics letter, the
Company and Telkomsel are required to submit the Reference Interconnection Offer (“RIO”)
proposal to ITRB to be evaluated.
Subsequently, ITRB in its letters No. 60/BRTI/III/2014 dated March 10, 2014 and
No. 125/BRTI/IV/2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of
RIO regarding the interconnection tariff. Based on the letter, ITRB also approved the changes to
the SMS interconnection tariff to Rp24 per SMS.
On January 18, 2017, ITRB in its letters No. 20/BRTI/DPI/I/2017 and No. 21/BRTI/DPI/I/2017,
decided to use the interconnection tariff based on the Company and Telkomsel’s RIO in 2014 until
the new interconnection tariff is set.
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
34. TELECOMMUNICATIONS SERVICE TARIFFS (continued)
d. Network lease tariffs
In 2008, the Director General of Post and Telecommunication issued Decree No. 115 of 2008 which
stated its agreement on Agreement on Network Lease Service Type Document, Network Lease
Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease Service,
and Provision Procedure of Network Lease Service Owned by Dominant Network Lease Service
Provider in conformity with the Company’s proposal. Through MoCI Regulation No. 5/2021, the
Government regulated the form, type, tariff structure, and tariff formula for services of network
lease.
e. Tariff for other services
The tariffs for satellite lease, telephony services, and other multimedia are determined by the
service provider by taking into account the expenditures and market price. The Government only
determines the tariff formula for basic telephony services. There is no stipulation for the tariff of
other services.
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS
a. Capital expenditures
As of December 31, 2023, capital expenditures committed under the contractual arrangements are
Rp8,596 billion, US$235 million, and CNY33 million.
The above balance includes the following significant agreements:
Contracting parties Date of agreement Significant part of the agreement
Development and Rollout Agreement
("DRA") and Technical Support
September 12, 2019 -
Telkomsel and PT Phincon Agreement ("TSA") Customer
September 12, 2024
Relationship Management ("CRM")
Solution System Integrator
Telkomsel, PT Ericsson Indonesia,
February 1, 2021 - Procurement Agreement for Radio
PT Huawei Tech Investment, and
January 31, 2024 Ultimate Solution ("ROA") and TSA
PT ZTE Indonesia
Telkomsel, PT Sempurna Global
Procurement Agreement of Next
Pratama, PT Lintas Teknologi September 1, 2021 -
Generation of Gateway GPRS Support
Indonesia, and PT Ericsson September 1, 2024
Node ("GGSN") (Virtualized EPC)
Indonesia
Telkomsel, Amdocs Software
Agreement Online Charging System
Solutions Limited Liability October 8, 2021 -
(“OCS”) and Service Control Points
Company, and PT Application October 8, 2024
(“SCP”) System Solution Development
Solutions
Telkomsel and PT Application October 8, 2021 -
TSA for OCS and SCP
Solutions October 8, 2024
Telkomsat and Thales Alenia October 28, 2021 - Procurement and Installation Agreement
Space France ("TAS") October 27, 2037 of HTS 113BT Satellite System
Telkomsel and PT Ericsson February 13, 2022 - Procurement Agreement for CS Core
Indonesia February 12, 2025 Solution ROA and TSA
Telkomsel and PT Lintas Teknologi February 13, 2022 - Procurement Agreement for CS Core
Indonesia February 12, 2025 Solution ROA and TSA
Telkomsel and PT Huawei Tech March 24, 2022 -
Procurement Agreement for GGSN
Investment March 24, 2025
Telkomsat and Space Exploration
April 19, 2022 - Procurement Agreement for Launch
Technologies Corporation
June 30, 2025 Service of HTS 113BT Satellite
("SpaceX")
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)
b. Borrowings and other credit facilities
(i) As of December 31, 2023, the Company has bank guarantee facilities for tender bonds,
performance bonds, maintenance bonds, deposit guarantee, and advance payment bonds for
various projects of the Company, as follows:
Lenders Total facility Maturity Currency Facility utilized
BRI 500 March 14, 2024 Rp 23
BNI 500 March 31, 2024 Rp 105
Bank Mandiri 500 June 21, 2025 Rp 127
Total 1,500 255
(ii) As of December 31, 2023, Telkomsel has bank guarantee facilities for various projects, as
follows:
Lenders Total facility Maturity Currency Facility utilized
BRI 1,000 September 25, 2028 Rp 621
BNI 2,100 December 11, 2024 Rp 1,453
Total 3,100 2,074
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 Rp385 billion will expire on December 23, 2024. As of
December 31, 2023, 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.
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 the On February 27, 2023, Telkomsel granted to utilize the
MoCI amd. Decree No. 76 Year annual radio frequency license for band 1,975-1,980
2023 of the MoCI 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 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 of Telkomsel was appointed to use the radio frequency
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 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.
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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) 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.
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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:
2023
U.S 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
2022
U.S Dollar Japanese Yen Others* Rupiah equivalent
(in millions) (in millions) (in millions) (in billions)
Assets
Cash and cash equivalents 261.09 5.74 13.60 4,298
Other current financial assets 27.06 - 0.02 427
Trade receivables
Related parties 0.47 - - 7
Third parties 86.06 - 8.24 1,481
Contract assets 30.91 - - 486
Other receivables 0.92 - 1.11 32
Other current assets 0.30 - 0.46 13
Long-term investment in financial instruments 372.84 - 6.22 5,907
Other non-current assets 0.43 - 0.55 17
Total assets 780.08 5.74 30.20 12,668
Liabilities
Trade payables
Related parties (0.13) - - (2)
Third parties (104.25) (25.34) (5.82) (1,728)
Other payables (1.58) - (2.93) (70)
Accrued expenses (39.41) (5.21) (2.31) (657)
Customer deposits (2.39) - (0.11) (38)
Current maturities of long-term borrowings (15.78) (767.90) (4.72) (413)
Long-term borrowings – net of current maturities (24.75) (767.90) (30.60) (958)
Other liabilities (2.00) - - (33)
Total liabilities (190.29) (1,566.35) (46.49) (3,899)
Assets (liabilities) - net 589.79 (1,560.61) (16.29) 8,769
*Assets and liabilities denominated in other foreign currencies are presented as U.S. Dollar equivalents using the buy and sell rates quoted by
Reuters prevailing at the end of the reporting period.
The Group’s activities expose them to a variety of financial risks, including the effects of changes in
debt and equity market prices, foreign currency exchange rates, and interest rates.
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 December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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
2023 2022
Amortized cost
Cash and cash equivalents 29,007 31,947
Other current financial assets 1,359 1,268
Trade receivables 10,667 8,634
Other receivables 266 245
Other non-current assets 155 186
FVTPL
Long-term investment in financial instruments 8,028 8,508
Other current financial assets 302 81
FVTOCI
Long-term investment in financial instruments 25 22
Total financial assets 49,809 50,891
(b) Financial liabilities
2023 2022
Financial liabilities measured at amortized cost
Trade payables 18,608 18,457
Other payables 441 463
Accrued expenses 13,079 15,445
Customers deposits 42 44
Short-term bank loans 9,650 8,191
Two-step loans 84 209
Bonds and MTN 5,343 4,793
Long-term bank loans 32,260 29,873
Other borrowings 362 1,314
Lease liabilities 20,425 18,661
Other liabilities 141 170
Total financial liabilities 100,435 97,620
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
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
102
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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
2022 value Fair value (level 1) (level 2) (level 3)
FVTPL
Other current financial assets 81 81 81 - -
Long-term investment in financial instruments 8,508 8,508 2,172 - 6,336
FVTOCI
Long-term investment in financial instruments 22 22 - - 22
Financial liabilities at amortized cost
Interest-bearing loans and other borrowings:
Two-step loans 209 207 - - 207
Bonds and MTN 4,793 5,614 5,614 - -
Long-term bank loans 29,873 29,860 - - 29,860
Other borrowings 1,314 1,311 - - 1,311
Lease liabilities 18,661 18,661 - - 18,661
Other liabilities 170 170 - - 170
Total 63,631 64,434 7,867 - 56,567
As of December 31, 2022, there was a transfer of the fair value hierarchy of financial assets
from level 2 and level 3 to level 1 with the consideration that there was a quoted price in an
active market condition for identical assets that could be accessed on the measurement date.
Therefore, these financial assets can be categorized as level 1. These financial assets are
long-term investments in shares in GOTO of Rp2,159 billion and in PT Global Sukses Solusi
Tbk. of Rp13 billion.
Loss on fair value measurement recognized in consolidated statements of profit or loss and
other comprehensive income for the years ended December 31, 2023 amounting to Rp687
billion.
Reconciliations of the beginning and ending balances for items measured at fair value using
significant unobservable inputs (level 3) for the years ended December 31, 2023 and 2022 are
as follows:
2023 2022
Beginning balance 6,358 4,762
Gain (loss) recognized in consolidated statement
of profit or loss and other comprehensive income (687) 282
Purchase 330 1,338
Settlement (4) (24)
Ending balance 5,997 6,358
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 summarizes the quantitative information about the significant unobservable
inputs used in level 3 fair value measurements:
Significant
Valuation unobservable Range Sensitivity of the input of fair
Industry technique input (weighted average) value
Investment in equity
Non-listed equity investment - OPM Backsolve Volatility 40% - 70% 10% increase (decrease) in the
technology method percentage of volatility would result
in an increase (decrease) Rp36
billion of the Investment value
Exit timing 1 - 4 Years Increase (decrease) in 1 year exit
timing would result in an increase
(decrease) Rp54 billion of the
Investment value
Probability of 50% 50% increase (decrease) in IPO
IPO probability would result in an
increase (decrease) Rp0 billion of
the Investment value
CoCos Equity Volatility 20% - 100% 10% increase (decrease) in the
percentage of volatility would result
in an increase (decrease) Rp36
billion of the Investment value
Exit timing 1 - 6 Years Increase (decrease) in 1 year exit
timing would result in an increase
(decrease) Rp61 billion of the
Investment value
Probability-weighted Volatility 60% - 80% 10% increase (decrease) in the
Method percentage of volatility would result
in an increase (decrease) Rp15
billion of the Investment value
Exit timing 1.25 - 3.25 Years Increase (decrease) in 1 year exit
timing would result in an increase
(decrease) Rp34 billion of the
Investment value
Recent Transaction Volatility 53.66% - 73.66% 10% increase (decrease) in the
percentage of volatility would result
in an increase (decrease) Rp1
billion of the Investment value
Exit timing 2 - 4 Years Increase (decrease) in 1 year exit
timing would result in an increase
(decrease) Rp0 billion of the
Investment value
Market movement Volatility 45% - 68% 10% increase (decrease) in the
percentage of volatility would result
in an increase (decrease) Rp1
billion of the Investment value
Time to liquidity 2.3 - 3.3 Years Increase (decrease) in 1 year time
to liquidity would result in an
increase (decrease) Rp2 billion of
the Investment value
104
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 summarizes the quantitative information about the significant unobservable
inputs used in level 3 fair value measurements (continued):
Significant Range
Valuation unobservable (weighted
Industry technique input average) Sensitivity of the input of fair value
Investment in equity
Non-listed equity investment - Discounted cash Weighted Average 11% - 22% 1% increase (decrease) in the
credit rating agency flow Cost of Capital percentage of WACC would result in an
("WACC") increase (decrease) Rp10 billion of the
Investment value
Terminal growth rate 1% - 5% 1% increase (decrease) in terminal
growth rate would result in an increase
(decrease) Rp7 billion of the Investment
value
Non-listed equity investment - Discounted cash WACC 3.85% - 16.5% 0.5% increase (decrease) in WACC
telecommunication flow would result in an increase (decrease)
Rp0 billion of the Investment value
Terminal growth rate 2% - 3.2% 1% increase (decrease) in terminal
growth rate would result in an increase
(decrease) Rp0 billion of the Investment
value
Convertible bonds
Non-listed equity investment - OPM Backsolve Volatility 10% 10% increase (decrease) in the
technology method percentage of volatility would result in an
increase (decrease) Rp0 billion of the
Investment value
Exit timing 1 Year Increase (decrease) in 1 year exit timing
would result in an increase (decrease)
Rp0 billion of the Investment value
Market movement Volatility 50.80% 10% increase (decrease) in the
percentage of volatility would result in an
increase (decrease) Rp0 billion of the
Investment value
Time to liquidity 3.3 Years Increase (decrease) in 1 year time to
liquidity would result in an increase
(decrease) Rp0 billion of the Investment
value
Conversion Probability of 50% 50% increase (decrease) in probability of
discount qualified financing qualified financing would result in an
increase (decrease) Rp1 billion of the
Investment value
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.
105
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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 (continued)
The Group determined the fair value measurement for disclosure purposes of each class of
financial assets and financial liabilities based on the following methods and assumptions:
(a) Fair value through profit or loss, primarily consist of stocks, mutual funds, corporate and
government bonds, and convertible bonds. Stocks and mutual funds actively traded in an
established market are stated at fair value using quoted market price or, if unquoted,
determined using a valuation technique. The fair value of convertible bonds are determined
using valuation technique. Corporate and government bonds are stated at fair value by
reference to prices of similar at the reporting date.
(b) The fair values of long-term financial liabilities are estimated by discounting the future
contractual cash flows of each liability at rates offered to the Group for similar liabilities of
comparable maturities by the bankers of the Group, except for bonds which are based on
market price.
The fair value estimates are inherently judgemental and involve various limitations, including:
(a) Fair values presented do not take into consideration the effect of future currency
fluctuations.
(b) Estimated fair values are not necessarily indicative of the amounts that the Group would
record upon disposal/termination of the financial assets and liabilities.
b. Financial risk management objectives and policies
The Group’s activities expose it to a variety of financial risks such as market risks (including
foreign exchange risk, market price risk, and interest rate risk), credit risk, and liquidity risk.
Overall, the Group’s financial risk management program is intended to minimize losses on the
financial assets and financial liabilities arising from fluctuation of foreign currency exchange rates
and the fluctuation of interest rates. Management has a written policy on foreign currency risk
management mainly on time deposit placements and hedging to cover foreign currency risk
exposures for periods ranging from 3 up to 12 months.
Financial risk management is carried out by the Corporate Finance unit under policies approved
by the Board of Directors. The Corporate Finance unit identifies, evaluates and hedges financial
risks.
i. Foreign exchange risk
The Group is exposed to foreign exchange risk on sales, purchases and borrowings that are
denominated in foreign currencies. The foreign currency denominated transactions are
primarily in U.S. Dollars and Japanese Yen. The Group’s exposures to other foreign exchange
rates are not material.
106
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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:
2023 2022
U.S. Dollar Japanese Yen U.S. Dollar Japanese Yen
(in billions) (in billions) (in billions) (in billions)
Financial assets 0.83 0.01 0.78 0.01
Financial liabilities (0.24) (0.80) (0.19) (1.57)
Net exposure 0.59 (0.79) 0.59 (1.56)
Sensitivity analysis
A strengthening of the U.S. Dollar and Japanese Yen, as indicated below, against the Rupiah
at December 31, 2023 would have decreased equity and profit or loss by the amounts shown
below. This analysis is based on foreign currency exchange rate variances that the Group
considered to be reasonably possible at the reporting date. The analysis assumes that all other
variables, in particular interest rates, remain constant.
Equity/profit (loss)
December 31, 2023
U.S. Dollar (1% strengthening) 91
Japanese Yen (5% strengthening) (4)
A weakening of the U.S. Dollar and Japanese Yen against the Rupiah at December 31, 2023,
would have had an equal but opposite effect on the above currencies to the amounts shown
above, on the basis that all other variables remain constant.
ii. Market price risk
The Group is exposed to changes in debt and equity market prices related to financial assets
measured at FVTPL carried at fair value. Gains and losses arising from changes in the fair
value of financial assets measured at FVTPL are recognized in the consolidated statements of
profit or loss and other comprehensive income.
The performance of the Group’s financial assets measured at FVTPL is monitored periodically,
together with a regular assessment of their relevance to the Group’s long-term strategic plans.
As of December 31, 2023, management considered the price risk for the Group’s financial
assets measured at FVTPL to be immaterial in terms of the possible impact on profit or loss
and total equity from a reasonably possible change in fair value.
107
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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:
2023 2022
Fixed rate borrowings 38,386 27,767
Variable rate borrowings 29,738 35,274
Sensitivity analysis for variable rate borrowings
As of December 31, 2023, a decrease (increase) by 25 basis points in interest rates of variable
rate borrowings would have increased (decreased) equity and profit or loss by Rp74 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:
2023 2022
Cash and cash equivalents 29,007 31,947
Other current financial assets 1,661 1,349
Trade receivable 10,667 8,634
Other receivable 266 245
Other non-current assets 155 186
Total 41,756 42,361
The Group is exposed to credit risk primarily from cash and cash equivalents and trade and
other receivables. The credit risk is controlled by continuous monitoring of outstanding balance
and collection. Credit risk from balances with banks and financial institutions is managed by
the Group’s Corporate Finance Unit in accordance with the Group’s written policy.
The Group placed the majority of its cash and cash equivalents in state-owned banks because
they have the most extensive branch networks in Indonesia and are considered to be financially
sound banks. Therefore, it is intended to minimize financial loss through banks and financial
institutions’ potential failure to make payments.
The customer credit risk is managed by continuous monitoring of outstanding balances and
collection. Trade and other receivables do not have any major concentration of risk whereas
no customer receivable balance exceeds 3.53% of trade receivables as of December 31, 2023.
(December 31, 2022: 4.33%)
Management is confident in its ability to continue to control and sustain minimal exposure to
the customer credit risk given that the Group has recognized sufficient provision for impairment
of receivables to cover incurred loss arising from uncollectible receivables based on existing
historical data on credit losses.
108
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables 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
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)
Carrying Contractual 2027 and
amount cash flows 2023 2024 2025 2026 thereafter
2022
Trade payables 18,457 (18,457) (18,457) - - - -
Other payables 463 (463) (463) - - - -
Accrued expenses 15,445 (15,445) (15,445) - - - -
Customer deposits 44 (44) (44) - - - -
Interest bearing loans and
other borrowings:
Short-term bank loans 8,191 (8,191) (8,191) - - - -
Two-step loans 209 (216) (123) (93) - - -
Bonds and MTN 4,793 (10,096) (509) (510) (2,574) (293) (6,210)
Long-term bank loans 29,873 (36,301) (10,020) (8,346) (6,871) (4,874) (6,190)
Other borrowings 1,314 (1,394) (1,027) (367) - - -
Lease liabilities 18,661 (22,053) (5,893) (4,545) (2,766) (2,258) (6,591)
Other liabilities 170 (196) (20) (44) (44) (44) (44)
Total 97,620 (112,856) (60,192) (13,905) (12,255) (7,469) (19,035)
The difference between the carrying amount and the contractual cash flows is interest value.
The interest value of variable-rate borrowings are determined based on the effective interest
rates as of reporting date.
109
Page 118
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
38. CAPITAL MANAGEMENT
The capital structure of the Group is as follows:
2023 2022
Amount Portion Amount Portion
Short-term debts 9,650 4.73% 8,191 4.26%
Long-term debts 58,474 28.68% 54,850 28.52%
Total debts 68,124 33.41% 63,041 32.78%
Equity attributable to owners
of the parent company 135,744 66.59% 129,258 67.22%
Total 203,868 100.00% 192,299 100.00%
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern in order to provide returns for stockholders and benefits to other stakeholders and to
maintain an optimum capital structure to minimize the cost of capital.
Periodically, the Group conducts debt valuation to assess possibilities of refinancing existing debts
with new ones with have more efficient cost that will lead to more optimized cost-of-debt. In case of
idle cash with limited investment opportunities, the Group will consider buying back its shares of stock
or paying dividend to its stockholders.
In addition to complying with loan covenants, the Group also maintains its capital structure at the level
it believes will not risk its credit rating and which is comparable with its competitors.
Debt-to-equity ratio (comparing net interest-bearing debt to total equity) is a ratio which is monitored
by management to evaluate the Group’s capital structure and review the effectiveness of the Group’s
debts. The Group monitors its debt levels to ensure the debt-to-equity ratio complies with or is below
the ratio set out in its contractual borrowings arrangements and that such ratio is comparable or better
than that of regional area entities in the telecommunications industry.
The Group’s debt-to-equity ratio as of December 31, 2023 and 2022, respectively were as follows:
2023 2022
Total interest-bearing debts 68,124 63,041
Less: cash and cash equivalents (29,007) (31,947)
Net debts 39,117 31,094
Total equity attributable to owners of the parent
company 135,744 129,258
Net debt-to-equity ratio 28.82% 24.06%
As stated in Note 19, the Group is required to maintain a certain debt-to-equity ratio and debt service
coverage ratio by the lenders. For the year ended December 31, 2023 and 2022, the Group has
complied with externally imposed capital requirements.
110
Page 119
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
39. SUPPLEMENTAL CASH FLOWS INFORMATION
a. The non-cash investing activities for the years ended December 31, 2023 and 2022 are as follows:
2023 2022
Acquisition of property and equipment:
Credited to trade payables 3,905 4,662
Borrowing cost capitalization 124 79
Addition of right of uses assets credited
to leases (Note 12) 10,390 10,006
Acquisition of intangible assets:
Credited to trade payables 479 258
b. The changes in liabilities arising from financing activities is as follows:
Non-cash changes
Foreign
exchange Other
January 1, 2023 Cash flows movement New leases Changes December 31, 2023
Short-term bank loans 8,191 1,459 - - - 9,650
Two step loans 209 (128) 3 - - 84
Bonds 4,793 550 - - - 5,343
Long-term bank loans 29,873 2,584 (213) - 16 32,260
Other borrowings 1,314 (954) - - 2 362
Lease liabilities 18,661 (6,602) (15) 10,390 (2,009) 20,425
Total liabilities from
financing activities 63,041 (3,091) (225) 10,390 (1,991) 68,124
40. SUBSEQUENT EVENT
In January 2024, Telkomsel has paid the entire outstanding loans to BSI, Bank of China, and BJB
amounting to Rp500 billion, Rp1,400 billion, and Rp500 billion, respectively.
41. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND INTERNATIONAL
FINANCIAL REPORTING STANDARDS (“IFRS”)
These are summary of significant differences between PSAK and IFRS for the year 2023.
Impact of significant differences between PSAK and IFRS on items in consolidated statements of
financial position as of December 31, 2023 were as follows:
Reference PSAK Reconciliation IFRS
ASSETS
Trade receivables - net allowance for
expected credit losses
Related parties b 1,918 439 2,357
Third parties b 8,749 (439) 8,310
Other current assets d 7,996 15 8,011
Total Current Assets 55,613 15 55,628
Property and equipment - net of accumulated depreciation a 180,755 (1,955) 178,800
Right-of-use asset a,d 22,584 1,440 24,024
Deferred tax assets - net d 4,170 50 4,220
Total Non-current Assets 231,429 (465) 230,964
TOTAL ASSETS 287,042 (450) 286,592
111
Page 120
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
41. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND INTERNATIONAL
FINANCIAL REPORTING STANDARDS (“IFRS”) (continued)
Reference PSAK Reconciliation IFRS
LIABILITIES AND EQUITY
Trade payables
Related parties b 585 2,405 2,990
Third parties b 18,023 (2,405) 15,618
Current maturities of lease liabilities d 5,575 (117) 5,458
Total Current Liabilities 71,568 (117) 71,451
Lease liabilities d 14,850 (6) 14,844
Total Non-current Liabilites 58,912 (6) 58,906
TOTAL LIABILITIES 130,480 (123) 130,357
EQUITY
Additional paid-in capital c 2,711 (734) 1,977
Other equity c 9,639 (9,139) 500
Retained earnings c 118,441 9,705 128,146
Net equity attributable to owners of the parent company d 135,744 (168) 135,576
Non-controlling interest d 20,818 (159) 20,659
TOTAL EQUITY 156,562 (327) 156,235
TOTAL LIABILITIES AND EQUITY 287,042 (450) 286,592
Impact of significant differences between PSAK and IFRS on items in consolidated statements of profit
or loss and other comprehensive income for the year ended December 31, 2023 were as follows:
Reference PSAK Reconciliation IFRS
Depreciation and amortization expenses a,d (32,663) 94 (32,569)
Other income - net d 252 7 259
OPERATING PROFIT 44,384 101 44,485
Finance cost d (4,652) (40) (4,692)
PROFIT BEFORE INCOME TAX 40,794 61 40,855
INCOME TAX (EXPENSE) BENEFIT (8,586) (201) (8,787)
PROFIT FOR THE YEAR 32,208 (140) 32,068
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 30,754 (140) 30,614
Profit for the year attributable to:
Owners of the parent company 24,560 (133) 24,427
Non-controlling interests 7,648 (7) 7,641
32,208 (140) 32,068
Total comprehensive income for the year attributable to:
Owners of the parent company 23,083 (134) 22,949
Non-controlling interests 7,671 (6) 7,665
30,754 (140) 30,614
BASIC EARNING PER SHARE
(in full amount)
Net income per share 247.92 (1.34) 246.58
Net income per ADS (100 Series B shares per ADS) 24,792.50 (134.26) 24,658.24
112
Page 121
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2023 and For the Year Then Ended
(Amounts in the tables expressed in billions of Rupiah, unless otherwise stated)
41. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN PSAK AND INTERNATIONAL
FINANCIAL REPORTING STANDARDS (“IFRS”) (continued)
a. Land rights
Under PSAK, land rights are recorded as part of property and equipment and are not amortized,
unless there is indication that the extension or renewal of land rights is not expected to be or will
not be received. Costs incurred to process the extension or renewal of land legal rights are
recognized as intangible assets and amortized over the shorter of the term of the land rights or
the economic life of the land.
Under IFRS, land rights are accounted and presented as part of right-of-use assets. Land rights
amortized over the lease period.
b. Related party transactions
Under Bapepam-LK Regulation No. VIII.G.7 regarding the Presentation and Disclosures of
Financial Statements of Issuers or Public Companies, a government-related entity is an entity that
is controlled, jointly controlled, or significantly influenced by a government. Government in this
context is the Ministry of Finance or the Local Government, as the shareholder of the entity.
Under IFRS, a government-related entity is an entity that is controlled, jointly controlled, or
significantly influenced by a government. Government in this context refers to the Government of
Indonesia, Government agencies, and similar bodies whether local, national, or international.
c. Differences in entities under common control restructuring transactions
According to PSAK, the difference between restructuring transactions between entities under
common control is included in the grouping of additional paid-in capital in equity. Meanwhile,
according to IFRS, the difference in restructuring transactions between entities under common
control is included in the grouping of retained earnings.
d. Timing difference in applying accounting standards
The Group applied PSAK 73 Leases starting from January 1, 2020. It is equivalent with accounting
standards in IFRS 16 Leases which was implemented in the beginning January 1, 2019. Timing
difference in applying accounting standard results in differences in some of accounts in the
consolidated financial statements.
113
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