March 31, 2020 (unaudited) and for the three months period then ended (unaudited)

Perusahaan Perseroan (Persero)

PT Telekomunikasi Indonesia Tbk and its subsidiaries

Consolidated financial statements

as of March 31, 2020 (unaudited) and for the three months period then ended (unaudited)


Table of Content

Statement of the Board of Directors

regarding the Board of Director’s Responsibility for

Consolidated Financial Statements

as of March 31, 2020 and for the year ended

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk and its Subsidiaries

On behalf of the Board of Directors, weundersigned:

1.

Name

:

Ririek Adriansyah

Business Address

:

Jl. Japati No.1 Bandung 40133

Address

:

Jl. Kenanga V B-6 No. 6 Taman Duta RT 002 RW 009

Kelurahan Cisalak, Kecamatan Sukma Jaya, Depok

Phone

:

(022) 452 7101

Position

:

President Director

:

2.

Name

:

Heri Supriadi

Business Address

:

Jl. Japati No.1 Bandung 40133

Address

:

Jl. Rancamayar No. 18 RT 001 RW 008

Kelurahan Gumuruh Kecamatan Batununggal, Bandung

Phone

:

(022) 452 7201/ 021 520 9824

Position

:

Director of Finance

We hereby state as follows:

1.

We are responsible for the preparation and presentation of the consolidated financial statement of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (the “Company”) and its subsidiaries;

2.

The Company and its subsidiaries’ consolidated financial statement have been prepared and presented in accordance with Indonesian financial accounting standards;

3.

All information has been fully and correctly disclosed in the Company and its subsidiaries’ consolidated financial statement;

4.

The Company and its subsidiaries’ consolidated financial statement do not contain false material information or facts, nor do they omit any material information or facts;

5.

We are responsible for the Company and its subsidiaries’ internal control system.

This statement is considered to be true and correct.

Jakarta, June 29, 2020

/s/ Ririek Adriansyah

Ririek Adriansyah

President Director

/s/ Heri Supriadi

Heri Supriadi

Director of Finance


PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND FOR THE THREE MONTHS PERIOD THEN ENDED

(UNAUDITED)

TABLE OF CONTENTS

Page

Statement of the Board of Directors

Consolidated Statement of Financial Position

1

Consolidated Statement of Profit or Loss and Other Comprehensive Income

2

Consolidated Statement of Changes in Equity

3-4

Consolidated Statement of Cash Flows

5

Notes to the Consolidated Financial Statements

6-128


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 March 31, 2020 (unaudited) and December 31, 2019 (audited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

    

Notes

    

March 31, 2020

    

December 31, 2019

ASSETS

CURRENT ASSETS

Cash and cash equivalents

 

2c,2e,2u,3,33,38

 

24,365

 

18,242

Other current financial assets

 

2c,2e,2u,4,33,38

 

1,234

 

554

Trade receivables - net provision for impairment of receivables

 

2g,2u,2ae,5,38

 

Related parties

 

2c,33

 

2,435

 

1,792

Third parties

 

 

12,489

 

10,005

Contract assets

 

2r,2u,2ae,6,38

 

748

 

-

Other receivables - net of provision for impairment of receivables

2g,2u,38

176

 

292

Inventories - net provision for obsolescence

 

2h,7

 

681

 

585

Assets held for sale

 

2j,11

 

39

 

39

Contract cost

2r,2ae,9

342

 

-

Prepaid taxes

2t,28a

2,702

 

2,569

Claim for tax refund

2t,28b

914

 

992

Other current assets

 

2c,2i,2m,8,33

 

4,839

 

6,652

Total Current Assets

 

 

50,964

 

41,722

NON-CURRENT ASSETS

 

 

 

Long-term investments

 

2f,2u,10

 

2,059

 

1,944

Property and equipment - net of accumulated depreciation

 

2l,2m,2ab,11,36

 

153,575

 

156,973

Right of use assets

2m,2ae,12

19,980

-

Intangible assets - net of accumulated amortization

2d,2k,2n,2ab,14

6,391

 

6,446

Deferred tax assets - net

2t,2ae,28f

2,824

 

2,898

Contract assets

2r,2u,2ae,6,38

327

-

Contract cost

2r,2ae,9

757

-

Other non-current assets

 

2c,2g,2i,2n,2t,2u,13,28,33,38

 

5,037

 

11,225

Total Non-Current Assets

 

  

 

190,950

 

179,486

TOTAL ASSETS

241,914

 

221,208

LIABILITIES AND EQUITY

 

CURRENT LIABILITIES

 

 

 

Trade payables

 

2o,2u,15,38

 

 

Related parties

 

2c,33

 

691

 

819

Third parties

 

 

12,957

 

13,078

Other payables

 

2u,38

 

733

 

449

Taxes payable

2t,28c

4,278

 

3,431

Accrued expenses

2c,2u,16,33,38

14,854

 

13,736

Unearned income - current

 

2r

 

666

 

7,352

Contract liabilities

 

17a

6,748

-

Advances from customers

 

2c,33

 

2,194

 

1,289

Short-term bank loans

2c,2p,2u,18a,33,38

8,624

 

8,705

Current maturities of long-term borrowings

 

2c,2m,2p,2u,2v,18b,33,38

 

12,301

 

9,510

Total Current Liabilities

 

 

64,046

 

58,369

NON-CURRENT LIABILITIES

 

 

 

Deferred tax liabilities - net

 

2t,2ae,28f

 

1,008

 

1,230

Unearned income - net of current portion

 

2r

 

-

 

803

Contract liabilities

 

2r,2ae,17b

823

-

Long service award provisions

 

2s,32

 

1,094

 

1,066

Pension benefits and other post-employment

 

  

 

 

benefits obligations

2s,31

8,230

 

8,078

Long-term borrowings - net of current maturities

 

2c,2m,2p,2u,2v,19,33,38

 

39,503

 

33,869

Other liabilities

2o,2u

663

 

543

Total Non-Current Liabilites

 

 

51,321

 

45,589

TOTAL LIABILITIES

 

 

115,367

 

103,958

EQUITY

 

 

 

Capital stock

 

1c,21

 

4,953

 

4,953

Additional paid-in capital

 

2w,22

 

2,711

 

2,711

Other equity

2f,2u,23

779

 

408

Retained earnings

 

Appropriated

 

30

 

15,337

 

15,337

Unappropriated

 

  

 

82,667

 

76,152

Net equity attributable to:

 

Owners of the parent company

106,447

 

99,561

Non-controlling interest

 

2b,20

 

20,100

 

17,689

TOTAL EQUITY

 

 

126,547

 

117,250

TOTAL LIABILITIES AND EQUITY

 

 

241,914

 

221,208

The accompanying notes form an integral part of these consolidated financial statements.

1


These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

For the Three Months Period Ended March 31, 2020 and 2019 (unaudited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

Notes

2020

2019

REVENUES

2c,2r,24,33

34,194

 

34,840

Operation, maintenance and telecommunication service expenses

2c,2r,26,33

 

(8,252)

 

(10,709)

Depreciation and amortization expenses

2k,2l,2m,11,12,14

 

(6,849)

 

(5,642)

Personnel expenses

2c,2r,2s,25,33

 

(3,451)

 

(3,132)

Interconnection expenses

2c,2r,33

 

(1,519)

 

(1,268)

General and administrative expenses

2c,2r,27,33

 

(1,572)

 

(1,294)

Marketing expenses

2c,2r,33

 

(641)

 

(907)

Gains (losses) on foreign exchange - net

2q

 

205

 

(45)

Other income (expenses) - net

2l,2r

 

(186)

 

186

OPERATING PROFIT

 

11,929

 

12,029

Finance income

2c,33

 

219

 

276

Finance cost

2c,2p,2r,33

 

(1,215)

 

(996)

Share of profit (loss) of associated companies - net

2f,10

 

(9)

 

20

PROFIT BEFORE INCOME TAX

 

10,924

 

11,329

INCOME TAX (EXPENSE) BENEFIT

2t,2ae,28

 

 

Current

 

(2,831)

 

(2,849)

Deferred

 

208

 

24

(2,623)

(2,825)

PROFIT FOR THE PERIOD

 

8,301

 

8,504

OTHER COMPREHENSIVE INCOME

 

 

Other comprehensive income to be reclassified to profit

 

 

or loss in subsequent periods:

 

 

Foreign currency translation

2f,2q,23

 

419

 

(26)

Change in fair value of available-for-sale financial assets

2u,23

 

-

 

3

Share of other comprehensive income of associated companies

2f,10

 

4

 

(4)

Other comprehensive income not to be reclassified to profit

 

 

or loss in subsequent periods:

 

 

Defined benefit actuarial gains (losses) - net

2s,31

 

-

 

-

Other comprehensive income (losses) - net

 

423

 

(27)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

 

8,724

 

8,477

Profit for the period attributable to:

 

 

Owners of the parent company

 

5,862

 

6,224

Non-controlling interests

2b,20

 

2,439

 

2,280

8,301

8,504

Total comprehensive income for the period attributable to:

 

 

Owners of the parent company

 

6,285

 

6,197

Non-controlling interests

2b

2,439

 

2,280

8,724

8,477

BASIC EARNING PER SHARE

 

 

(in full amount)

2x,29

 

 

Net income per share

 

59.17

62.83

Net income per ADS (100 Series B shares per ADS)

 

5,917.49

6,282.92

The accompanying notes form an integral part of these consolidated financial statements.

2


These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Three Months Period Ended March 31, 2020 and 2019 (unaudited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

Attributable to owners of the parent company

Retained earnings

Description

Notes

Capital stock

Additional paid-in capital

Other equity

Appropriated

Unappropriated

Net

Non-controlling interests

Total equity

Balance, Deceember 31, 2019

4,953

 

2,711

 

408

 

15,337

 

76,152

 

99,561

17,689

 

117,250

The impact of applying new accounting standards

2ad

-

-

(48)

-

649

601

(47)

554

Balance, January 1, 2020

4,953

2,711

360

15,337

76,801

100,162

17,642

117,804

Adjustment of non-controlling interest

-

-

-

-

-

-

69

69

Cash dividends

-

-

-

-

-

-

(50)

(50)

Profit for the period

2b,20

-

-

-

-

5,862

5,862

2,439

8,301

Other comprehensive income

2f,2q,2s,2u

-

-

419

-

4

423

-

423

Balance, March 31, 2020

4,953

2,711

779

15,337

82,667

106,447

20,100

126,547

The accompanying notes form an integral part of these consolidated financial statements.

3


These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Three Months Period Ended March 31, 2020 and 2019 (unaudited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

Attributable to owners of the parent company

    

    

    

    

Retained earnings

Description

Notes

Capital stock

Additional paid-in capital

Other equity

Appropriated

Unappropriated

Net

Non-controlling interests

Total equity

Balance, January 1, 2019

 

 

4,953

 

2,455

 

507

 

15,337

 

75,658

 

98,910

18,393

 

117,303

Capital contribution to subsidiaries

-

-

-

-

-

-

59

59

Acquisition of businesses

-

-

-

-

-

-

37

37

Acquisition of non-controlling interest

-

-

-

-

-

-

42

42

Cash dividends

 

 

-

-

-

-

-

(1)

(1)

Profit for the period

 

2b,20

 

-

-

-

-

6,224

6,224

2,280

8,504

Other comprehensive income - net

2f,2q,2s,2u

-

-

(23)

-

(3)

(26)

-

(26)

Balance, March 31, 2019

 

 

4,953

2,455

484

15,337

81,879

105,108

20,810

125,918

The accompanying notes form an integral part of these consolidated financial statements.

4


These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOW

For the Three Months Period Ended March 31, 2020 and 2019 (unaudited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

Notes

2020

2019

CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from customers and other operators

29,273

31,366

Cash receipts from tax refund

1,816

-

Cash receipts from value added taxes - net

365

804

Cash receipts from finance income

209

257

Cash payments for expenses

(8,625)

(14,607)

Cash payments to employees

(2,492)

(2,724)

Cash payments for corporate and final income taxes

(1,364)

(1,176)

Cash payments for finance costs

(1,229)

(955)

Cash payments for short-term and low-value lease asset

(909)

-

Cash receipts from others - net

559

90

Net cash provided by operating activities

17,603

13,055

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property and equipment

11

45

267

Dividen received from associated company

10

5

-

Proceeds from insurance claims

11

3

54

Purchase of property and equipment

11,39

(4,051)

(4,565)

Acquisition of businesses, net of acquired cash

-

(1,108)

Purchase of intangible assets

13,39

(736)

(261)

Placement in other current financial assets - net

(411)

(252)

Additional contribution on long-term investments

(52)

(16)

Increase (decrease) in advances and other assets - net

108

(327)

Net cash used in investing activities

(5,089)

(6,208)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank loans and other borrowings

18,19

1,533

3,175

Repayments of loan and other borrowings

18,19

(6,064)

(4,132)

Payment of principal portion of lease liabilities

(2,269)

-

Cash dividends paid to non-controlling interests of subsidiaries

(50)

-

Capital contribution from non-controling interests of subsidiaries

-

59

Net cash used in financing activities

(6,850)

(898)

NET INCREASE IN CASH AND CASH EQUIVALENTS

5,664

5,949

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND

CASH EQUIVALENTS

459

(8)

ALLOWANCE FOR EXPECTED CREDIT LOSSES

(0)

-

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

3

18,242

17,439

CASH AND CASH EQUIVALENTS AT END OF YEAR

3

24,365

23,380

The accompanying notes form an integral part of these consolidated financial statements.

5


PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATMENTS

For the Three Months Period Ended March 31, 2020 and 2019 (unaudited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

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”) (Notes 1c and 22).

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 Articles of Association has been amended several times, the latest amendments of which were pertaining to the increase in the flexibility and independency of the Board Commissioners in approving the Directors’ actions at a certain threshold as stated in notarial deeds No. 32 dated June 21, 2019 of Ashoya Ratam, S.H., M.Kn. Such amendments were accepted and approved by the Ministry of Law and Human Rights of the Republic of Indonesia (“MoLHR”) in its letter No. AHU-0032595.AH.01.02 dated June 24, 2019.

In accordance with Article 3 of the Company’s Articles of Association, the scope of its activities is to provide telecommunication network and telecommunication and information services, and to optimize the Company’s resources to provide high quality and competitive goods and/or services to gain/pursue profit in order to increase the value of the Company by applying the Limited Liability Company principle. In regard to achieving its objectives, the Company is involved in the following activities:

i. Main business:

(a)

Planning, building, providing, developing, operating, marketing or selling or leasing, and maintaining telecommunications and information networks in a broad sense in accordance with prevailing laws and regulations.

(b)

Planning, developing, providing, marketing or selling, and improving telecommunications and information services in a broad sense in accordance with prevailing laws and  regulations.

(c)

Investing including in the form of equity capital in other companies in line with and to achieve the purposes and objectives of the Company.

ii. Supporting business:

(a)

Providing payment transactions and money transferring services through telecommunications and information networks.

(b)

Performing other activities and undertakings in connection with the optimization of the Company's resources, which among others, include the utilization of the Company's property and equipment and movable assets, information systems, education and training, and repairs and maintenance facilities.

(c)

Collaborating with other parties in order to optimize the information, communication or technology resources owned by other parties as service provider in information, communication and technology industry, as to achieve the purposes and objectives of the Company.

The Company’s head office is located at Jalan Japati No. 1, Bandung, West Java.

6


PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATMENTS

For the Three Months Period Ended March 31, 2020 and 2019 (unaudited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

1.

GENERAL (continued)

a.Establishment and general information (continued)

The Company was granted several networks and/or services provision licenses by the Government which are valid for an unlimited period of time as long as the Company complies with prevailing laws and regulations and fulfills the obligation stated in those licenses. For every license issued by the Ministry of Communication and Information (“MoCI”), an evaluation is performed annually and an overall evaluation is performed every five years. The Company is obliged to submit reports of networks and/or services annually to the Indonesian Directorate General of Post and Informatics (“DGPI”), which replaced the previous Indonesian Directorate General of Post and Telecommunications (“DGPT”).

The reports comprise information such as network development progress, service quality standard achievement, numbers of customers, license payment and universal service contribution, while for internet telephone services for public purpose, internet interconnection service, and internet access service, there is additional information required such as operational performance, customer segmentation, traffic, and gross revenue.

Details of these licenses are as follows:

License

License No.

Type of services

Grant date/latest renewal date

License of electronic money issuer

Bank Indonesia License No. 11/432/DASP

Electronic money

July 3, 2009

License of money remittance

Bank Indonesia License No. 11/23/bd/8

Money remittance service

August 5, 2009

License to operate internet telephone services for public purpose

127/KEP/DJPPI/ KOMINFO/3/2016

Internet telephone services for public purpose

March 30, 2016

License to operate fixed domestic long distance network

839/KEP/M.KOMINFO/ 05/2016

Fixed domestic long distance and basic telephone services network

May 16, 2016

License to operate fixed closed network

844/KEP/M.KOMINFO/ 05/2016

Fixed closed network

May 16, 2016

License to operate fixed international network

846/KEP/M.KOMINFO/ 05/2016

Fixed international and basic telephone services network

May 16, 2016

License to operate circuit switched based local fixed line network

948/KEP/M.KOMINFO/ 05/2016

Circuit switched based local fixed line network

May 31, 2016

License to operate data communication system services

191/KEP/DJPPI/ KOMINFO/10/2016

Data communication system services

October 31, 2016

License to operate internet service provider

2176/KEP/M.KOMINFO/ 12/2016

Internet service provider

December 30, 2016

License to operate content service provider

1040/KEP/M.KOMINFO/ 16/2017

Content service provider

May 16, 2017

License for the implementation of internet interconnection services

1004/KEP/M.KOMINFO/ 2018

Interconnection services

December 26, 2018

7


PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATMENTS

For the Three Months Period Ended March 31, 2020 and 2019 (unaudited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

1.

GENERAL (continued)

b.

Company’s Board of Commissioners, Directors, Audit Committee, Corporate Secretary, Internal Audit, and Employees

1.Board of Commissioners and Directors

Based on resolutions made at the Annual General Meeting (“AGM”) of Stockholders of the Company as covered by notarial deed No. 133 of Ashoya Ratam., S.H., M.Kn., dated May 24, 2019, the composition of the Company’s Boards of Commissioners and Directors as of March 31, 2020 and December 31, 2019, respectively, were as follows:

March 31, 2020

December 31, 2019

President Commissioner

Rhenald Kasali

Rhenald Kasali

Commissioner*

-

-

Commissioner*

-

-

Commissioner

Ismail

Ismail

Commissioner

Marcelino Rumambo Pandin

Marcelino Rumambo Pandin

Independent Commissioner

Marsudi Wahyu Kisworo

Marsudi Wahyu Kisworo

Independent Commissioner

Cahyana Ahmadjayadi

Cahyana Ahmadjayadi

Independent Commissioner

Margiyono Darsasumarja

Margiyono Darsasumarja

President Director

Ririek Adriansyah

Ririek Adriansyah

Director of Finance

Harry Mozarta Zen

Harry Mozarta Zen

Director of Digital Business

Faizal Rochmad Djoemadi

Faizal Rochmad Djoemadi

Director of Strategic Portfolio

Achmad Sugiarto

Achmad Sugiarto

Director of Enterprise and  

Business Service

Bogi Witjaksono

Bogi Witjaksono

Director of Wholesale and

International Services

Edwin Aristiawan

Edwin Aristiawan

Director of Human Capital

Management

Edi Witjara

Edi Witjara

Director of Network, Information

Technology and Solution

Zulhelfi Abidin

Zulhelfi Abidin

Director of Consumer Service

Siti Choiriana

Siti Choiriana

 *  Based on SK-271/MBU/11/2019 dated November 18, 2019, Edwin Hidayat Abdullah was appointed as Vice President Director of PT Angkasa Pura II (Persero) and based on SK-327/MBU/12/2019 dated December 23, 2019, Isa Rachmatarwata was appointed as Commissioner of PT Pertamina (Persero) hence their positions as Commissioners of the Company was ended by law.

2.Audit Committee, Corporate Secretary, and Internal Audit

The composition of the Company’s Audit Committee, Corporate Secretary, and Internal Audit as of March 31, 2020 and December 31, 2019, were as follows:

March 31, 2020

December 31, 2019

Chairman

Margiyono Darsasumarja

Margiyono Darsasumarja

Secretary

Tjatur Purwadi

Tjatur Purwadi

Member

Marsudi Wahyu Kisworo

Ismail

Member

Marcelino Rumambo Pandin

Marcelino Rumambo Pandin

Member

Sarimin Mietra Sardi

Sarimin Mietra Sardi

Corporate Secretary

Andi Setiawan

Andi Setiawan

Internal Audit

Harry Suseno Hadisoebroto

Harry Suseno Hadisoebroto

3.Employees

As of March 31, 2020 and December 31, 2019, the Company and subsidiaries (“Group”) had 26,044 employees and 24,272 employees (unaudited), respectively.

8


PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATMENTS

For the Three Months Period Ended March 31, 2020 and 2019 (unaudited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

1.

GENERAL (continued)

c.Public offering of securities of the Company

The Company’s shares prior to its Initial Public Offering (“IPO”) totalled 8,400,000,000, consisting of 8,399,999,999 Series B shares and 1 Series A Dwiwarna share, and were wholly-owned by the Government. On November 14, 1995, 933,333,000 new Series B shares and 233,334,000 Series B shares owned by the Government were offered to the public through an IPO and listed on the Indonesia Stock Exchange (“IDX”) and 700,000,000 Series B shares owned by the Government were offered to the public and listed on the New York Stock Exchange (“NYSE”) and the London Stock Exchange (“LSE”), in the form of American Depositary Shares (“ADS”). There were 35,000,000 ADS and each ADS represented 20 Series B shares at that time.

In December 1996, the Government had a block sale of its 388,000,000 Series B shares, and in 1997, distributed 2,670,300 Series B shares as incentive to the Company’s stockholders who did not sell their shares within one year from the date of the IPO. In May 1999, the Government further sold 898,000,000 Series B shares.

To comply with Law No. 1/1995 on Limited Liability Companies, at the AGM of Stockholders of the Company on April 16, 1999, the Company’s stockholders resolved to increase the Company’s issued share capital by the distribution of 746,666,640 bonus shares through the capitalization of certain additional paid-in capital, which was made to the Company’s stockholders in August 1999. On August 16, 2007, Law No. 1/1995 on Limited Liability Companies was amended by the issuance of Law No. 40/2007 on Limited Liability Companies which became effective on the same date. Law No. 40/2007 has no effect on the public offering of shares of the Company. The Company has complied with Law No. 40/2007.

In December 2001, the Government had another block sale of 1,200,000,000 shares or 11.9% of the total outstanding Series B shares. In July 2002, the Government further sold a block of 312,000,000 shares or 3.1% of the total outstanding Series B shares.

At the AGM of Stockholders of the Company held on July 30, 2004, the minutes of which are covered by notarial deed No. 26 of A. Partomuan Pohan, S.H., LLM., the Company’s stockholders approved the Company’s 2-for-1 stock split for Series A Dwiwarna and Series B share. The Series A Dwiwarna share with par value of Rp500 per share was split into 1 Series A Dwiwarna share with par value of Rp250 per share and 1 Series B share with par value of Rp250 per share. The stock split resulted in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna share and 39,999,999,999 Series B shares to 1 Series A Dwiwarna share and 79,999,999,999 Series B shares, and the issued capital stock from 1 Series A Dwiwarna share and 10,079,999,639 Series B shares to 1 Series A Dwiwarna share and 20,159,999,279 Series B shares. After the stock split, each ADS represented 40 Series B shares.

At the AGM held on April 19, 2013, the minutes of which were covered by notarial deed No. 38 of Ashoya Ratam, S.H., M.Kn., the stockholders approved the Company’s 5-for-1 stock split for Series A Dwiwarna and Series B shares. Series A Dwiwarna share with par value of Rp250 per share was split into 1 Series A Dwiwarna share with par value of Rp50 per share and 4 Series B shares with par value of Rp50 per share. The stock split resulted in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna and 79,999,999,999 Series B shares to 1 Series A Dwiwarna and 399,999,999,999 Series B shares. The issued capital stock increase from 1 Series A Dwiwarna and 20,159,999,279 Series B shares to 1 Series A Dwiwarna and 100,799,996,399 Series B shares. After the stock split, each ADS represented 200 Series B shares. Effective from October 26, 2016, the Company change the ratio of Depositary Receipt from 1 ADS representing 200 series B shares to become 1 ADS representing 100 series B shares (Note 18). Profit per ADS information have been retrospectively adjusted to reflect the changes in the ratio of ADS.

On May 16 and June 5, 2014, the Company deregistered from Tokyo Stock Exchange (“TSE”) and delisted from the LSE, respectively.

As of March 31, 2020, all of the Company’s Series B shares are listed on the IDX and 44,487,666 ADS shares are listed on the NYSE (Note 21).

9


PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATMENTS

For the Three Months Period Ended March 31, 2020 and 2019 (unaudited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

1.

GENERAL (continued)

c.Public offering of securities of the Company (continued)

On June 25, 2010 the Company issued the second rupiah bonds with a nominal amount of Rp1,005 billion for Series A, a five-year period and Rp1,995 billion for Series B, a ten-year period, respectively, are listed on the IDX (Note 19.b.i).

On June 16, 2015, the Company issued Continuous Bonds I Telkom Phase I 2015, with a nominal amount Rp2,200 billion for Series A, a seven-year period, Rp2,100 billion for Series B, a ten-year period, Rp1,200 billion for Series C, a fifteen-year period and Rp1,500 billion for Series D, a thirty-year period, respectively which are listed on the IDX (Note 19.b.i).

d.Subsidiaries

As of March 31, 2020 and December 31, 2019, the Company has consolidated the following directly or indirectly owned subsidiaries (Notes 2b and 2d):

(i)Direct subsidiaries:

Total assets before

Nature of business/date of

Year of start

Percentage of ownership*

elimination

Subsidiary/place of incorporation

   

Incorporation or acquisition by the Company

   

of commercial operations

   

March 31, 2020

   

December 31, 2019

   

March 31, 2020

   

December 31, 2019

PT Telekomunikasi

Telecommunication - provides

1995

65

65

108,833

82,730

Selular

telecommunication facilities

("Telkomsel"),

and mobile celuller

Jakarta, Indonesia

services using Global

Systems for Mobile

Communication ("GSM")

technology/

May 26, 1995

PT Dayamitra

Leasing of towers and other

1995

100

100

23,543

20,114

Telekomunikasi

telecommunication services/

("Dayamitra"),

May 17, 2001

Jakarta, Indonesia

PT Multimedia

Network telecommunication

1998

100

100

16,521

16,478

Nusantara

services and multimedia/

("Metra"),

May 9, 2003

Jakarta, Indonesia

PT Telekomunikasi

Telecommunication/

1995

100

100

13,399

10,970

Indonesia  

July 31, 2003

International

(“TII”),

Jakarta, Indonesia

PT Graha Sarana Duta

Leasing of offices and

1982

100

100

6,245

6,055

("GSD"),

providing building

Jakarta, Indonesia

management and

maintenance services, civil

consultant and developer/

April 25, 2001

PT Telkom Akses

Construction, service and

2013

100

100

3,953

4,436

(“Telkom Akses”),

trade in the field of

Jakarta, Indonesia

telecommunication/

November 26, 2012

PT Telkom Satelit

Telecomunication - provides

1996

100

100

3,295

3,309

Indonesia

satellite communication

("Telkomsat"),

system, services and

Jakarta, Indonesia

facilities/

September 28, 1995

PT PINS Indonesia

Telecommunication

1995

100

100

2,743

2,995

(“PINS”),

construction and services/

Jakarta, Indonesia

August 15, 2002

PT Infrastruktur

Construction, service and  

2014

100

100

1,898

1,706

Telekomunikasi

Trade in the field of

Indonesia

telecommunication/

(“Telkom Infratel”),

January 16, 2014

Jakarta, Indonesia

*Percentage of ownership amounting to 99.99% is presented with rounding 100%.

10


PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATMENTS

For the Three Months Period Ended March 31, 2020 and 2019 (unaudited)

(Figures in tables are expressed in billions of Rupiah, unless otherwise stated)

Table of Content

1.

GENERAL (continued)

d.Subsidiaries (continued)

(i)Direct subsidiaries (continued):

Total assets before

Nature of business/date of

Year of start

Percentage of ownership*

elimination

Subsidiary/place of incorporation

   

Incorporation or acquisition by the Company

   

of commercial operations

   

March 31, 2020

   

December 31, 2019

   

March 31, 2020

   

December 31, 2019

PT Metra-Net

Multimedia portal service/

2009

100

100

1,088

996

(“Metra-Net”),

April 17, 2009

Jakarta, Indonesia

PT Napsindo Primatel

Telecommunication -

1999; ceased

60

60

5

5

Internasional

provides Network Access

operations on

(“Napsindo”),

Point (NAP), Voice Over

January 13,

Jakarta, Indonesia

Data (VOD) and other

2006

related services/

December 29, 1998

*Percentage of ownership amounting to 99.99% is presented with rounding 100%.

(ii)Indirect subsidiaries:

Total assets before

Nature of business/date of

Year of start

Percentage of ownership*

elimination

Subsidiary/place of incorporation

   

Incorporation or acquisition by the Company

   

of commercial operations

   

March 31, 2020

   

December 31, 2019

   

March 31, 2020

   

December 31, 2019

PT Sigma Cipta Caraka

Information technology

1988

100

100

6,468

6,796

(“Sigma”),

service - system

Tangerang, Indonesia

implementation and

integration service,

outsourcing and software

license maintenance/

May 1,1987

Telekomunikasi

Telecommunication/

2008

100

100

4,505

3,635

Indonesia

December 6, 2007

International Pte. Ltd.,