6-K 1 tlk-20201104x6k.htm 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November, 2020

Perusahaan Perseroan (Persero)

PT Telekomunikasi Indonesia Tbk

(Exact name of Registrant as specified in its charter)

Telecommunications Indonesia

(A state-owned public limited liability Company)

(Translation of registrant’s name into English)

Jl. Japati No. 1 Bandung 40133, Indonesia

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F þ Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ¨ No þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ¨ No þ


Table of Contents

Statement of the Board of Directors

regarding the Board of Director’s Responsibility for

Consolidated Financial Statements as of September 30, 2020

and for the nine-months period ended (unaudited)

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 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, November 4, 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 SEPTEMBER 30, 2020 AND FOR THE NINE MONTHS PERIOD THEN ENDED

(UNAUDITED)

TABLE OF CONTENTS


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

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of September 30, 2020 (unaudited) and December 31, 2019 (audited)

Table of Contents

Notes

September 30, 2020

December 31, 2019

ASSETS

CURRENT ASSETS

Cash and cash equivalents

2e,2u,3,33,38

17,420

18,242

Other current financial assets

2e,2u,4,33,38

383

554

Trade receivables - net provision for

impairment of receivables

Related parties

2u,2ae,5,38

1,151

1,792

Third parties

33

11,570

10,005

Contract assets

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

822

-

Other receivables - net of provision for

impairment of receivables

2u,38

237

292

Inventories - net provision for obsolescence

7

1,026

585

Assets held for sale

11

39

39

Contract cost

2ae,9

441

-

Prepaid taxes

2t,28a

3,224

2,569

Claim for tax refund

2t,28b

804

992

Other current assets

8,33

3,560

6,652

Total Current Assets

40,677

41,722

NON-CURRENT ASSETS

Long-term investments

2u,10

2,052

1,944

Property and equipment - net of accumulated depreciation

2ab,11,36

156,641

156,973

Right of use assets

2ae,12

17,760

-

Intangible assets - net of accumulated amortization

2n,2ab,14

6,702

6,446

Deferred tax assets - net

2t,2ae,28f

2,975

2,898

Contract assets

2u,2ae,6,38

295

-

Contract cost

2ae,9

1,312

-

Other non-current assets

2t,2u,13,28,33,38

4,805

11,225

Total Non-current Assets

  

192,542

179,486

TOTAL ASSETS

233,219

221,208

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Trade payables

Related parties

2u,15,38

818

819

Third parties

33

13,766

13,078

Other payables

2u,38

520

449

Taxes payable

2t,28c

3,532

3,431

Accrued expenses

2u,16,33,38

13,684

13,736

Unearned income - current

2r

631

7,352

Contract liabilities

17a

6,801

-

Advances from customers

2c,33

2,010

1,289

Short-term bank loans

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

9,515

8,705

Current maturities of long-term borrowings

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

12,209

9,510

Total Current Liabilities

63,486

58,369

NON-CURRENT LIABILITIES

Deferred tax liabilities - net

2t,2ae,28f

749

1,230

Unearned income - net off current portion

2r

-

803

Contract liabilities

2r,2ae,17b

1,025

-

Long service award provisions

2s,32

1,124

1,066

Pension benefits and other post-employment

benefits obligations

2s,31

8,522

8,078

Long-term borrowings - net of current maturities

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

40,044

33,869

Other liabilities

2o,2u

380

543

Total Non-current Liabilites

51,844

45,589

TOTAL LIABILITIES

115,330

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

541

408

Retained earnings

Appropriated

30

15,337

15,337

Unappropriated

78,175

76,152

Net equity attributable to:

Owners of the parent company

101,717

99,561

Non-controlling interest

20

16,172

17,689

TOTAL EQUITY

117,889

117,250

TOTAL LIABILITIES AND EQUITY

233,219

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 Nine Months Period Ended September 30, 2020 and 2019 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

Table of Contents

Notes

2020

2019

REVENUES

2c,2r,24,33

99,941

102,631

Operation, maintenance and telecommunication

service expenses

2c,2r,26,33

(25,098)

(31,056)

Depreciation and amortization expenses

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

(21,038)

(17,259)

Personnel expenses

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

(10,406)

(9,744)

Interconnection expenses

2c,2r,33

(4,261)

(3,920)

General and administrative expenses

2c,2r,27,33

(4,234)

(4,932)

Marketing expenses

2c,2r,33

(2,356)

(2,949)

Losses on foreign exchange - net

2q

(2)

(58)

Other income - net

2l,2r

465

741

OPERATING PROFIT

33,011

33,454

Finance income

2c,33

644

882

Finance cost

2c,2p,2r,33

(3,457)

(3,219)

Share of loss of associated companies - net

2f,10

(136)

(3)

Impairment of long term investment in associated companies

(308)

-

PROFIT BEFORE INCOME TAX

29,754

31,114

INCOME TAX (EXPENSE) BENEFIT

2t,2ae,28

Current

(7,378)

(8,196)

Deferred

575

282

(6,803)

(7,914)

PROFIT FOR THE PERIOD

22,951

23,200

OTHER COMPREHENSIVE INCOME

Other comprehensive income to be reclassified to profit

or loss in subsequent periods:

Foreign currency translation

2f,2q,23

181

(61)

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

2u,23

-

4

Share of other comprehensive income of associated companies

2f,10

-

39

Other comprehensive income not to be reclassified to profit

or loss in subsequent periods:

Defined benefit actuarial gain (losses) - net

2s,31

-

-

Other comprehensive income (losses) - net

181

(18)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

23,132

23,182

Profit for the period attributable to:

Owners of the parent company

16,679

16,459

Non-controlling interests

2b,20

6,272

6,741

22,951

23,200

Total comprehensive income for the period attributable to:

Owners of the parent company

16,860

16,441

Non-controlling interests

2b

6,272

6,741

23,132

23,182

BASIC EARNING PER SHARE

(in full amount)

2y,29

Net income per share

168.37

166.15

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

16,836.89

16,614.81

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 STATEMENT OF CHANGES IN EQUITY

For the Nine Months Period Ended September 30, 2020 and 2019 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

Table of Contents

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, December 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)

-

606

558

(50)

508

Balance, January 1, 2020

4,953

2,711

360

15,337

76,758

100,119

17,639

117,758

Adjustment of non-controlling interest

-

-

-

-

-

-

(14)

(14)

Cash dividends

20,30

-

-

-

-

(15,262)

(15,262)

(7,725)

(22,987)

Profit for the period

2b,20

-

-

-

-

16,679

16,679

6,272

22,951

Other comprehensive income

2f,2q,2s,2u,20

-

-

181

-

-

181

-

181

Balance, September 30, 2020

4,953

2,711

541

15,337

78,175

101,717

16,172

117,889

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

3


PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Nine Months Period Ended September 30, 2020 and 2019 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

Table of Contents

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

Transaction under common control

-

249

-

-

-

249

170

419

Divestment of subsidiaries

-

226

-

-

-

226

-

226

Acquisition of non-controlling interest

-

-

(3)

-

-

(3)

27

24

Cash dividends

20.30

-

-

-

-

(16,229)

(16,229)

(8,538)

(24,767)

Profit for the period

2b,20

-

-

-

-

16,459

16,459

6,741

23,200

Other comprehensive income

2f,2q,2s,2u,20

-

-

(57)

-

39

(18)

-

(18)

Balance, September 30, 2019

4,953

2,930

447

15,337

75,927

99,594

16,852

116,446

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 STATEMENT OF CASH FLOWS

For the Nine Months Period Ended September 30, 2020 and 2019(unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

Table of Contents

Notes

2020

2019

CASH FLOWS FROM OPERATING ACTIVITIES

Total cash receipts from customers and other operators

96,087

98,450

Cash receipts from tax refund

2,912

-

Cash receipts from finance income

652

882

Cash payments for expenses

(29,152)

(43,984)

Cash payments to employees

(9,832)

(9,404)

Cash payments for corporate and final income taxes

(7,625)

(6,254)

Cash payment for finance costs

(3,541)

(3,264)

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

(2,065)

-

Cash payments for value added taxes - net

(35)

1,531

Cash receipts from others - net

49

306

Net cash provided by operating activities

47,450

38,263

CASH FLOWS FROM INVESTING ACTIVITIES

Redemption in other current financial assets - net

274

714

Proceeds from insurance claims

11

218

95

Proceeds from sale of property and equipment

11

141

1,261

Dividends received from associated companies

10

5

11

Purchase of property and equipment

11,40

(17,538)

(21,563)

Purchase of intangible assets

14,40

(1,916)

(1,424)

Additional contribution on long-term investments

10

(458)

(225)

Decreases in advances and other assets - net

(16)

(289)

Proceeds from divestment of subsidiaries

-

395

Acquisition of businesses, net of acquired cash

-

(1,108)

Net cash used in investing activities

(19,290)

(22,133)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank loans and other borrowings

18,19

17,629

21,744

Repayments of loan and other borrowings

18,19

(19,291)

(15,422)

Cash dividends paid to the Company's stockholder

30

(15,262)

(16,229)

Cash dividends paid to non-controlling interests of subsidiaries

(7,725)

(8,538)

Repayment of principal portion of lease liabilities

(4,541)

-

Capital contribution from non-controling interests of subsidiaries

-

59

Net cash used in financing activities

(29,190)

(18,386)

NET DECREASE IN CASH AND CASH

EQUIVALENTS

(1,030)

(2,256)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND

CASH EQUIVALENTS

208

(166)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

3

18,242

17,439

CASH AND CASH EQUIVALENTS AT END OF PERIOD

3

17,420

15,017

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

5


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

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Nine Months Period Ended September 30, 2020 and 2019 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

Table of Contents

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. Decree No. 7 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 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 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 with applied the Limited 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 regulations.

(b)

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

(c)

Investing including equity capital in other companies in line with achieving 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 activities and other 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 moving assets, information systems, education and training, 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


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

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Nine Months Period Ended September 30, 2020 and 2019 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

Table of Contents

1.

GENERAL (continued)

a.Establishment and general information (continued)

The Company was granted several networks and/or services licenses by the Government which are valid for an unlimited period of time as long as the Company complies with prevailing laws 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


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

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Nine Months Period Ended September 30, 2020 and 2019 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

Table of Contents

1.

GENERAL (continued)

b.

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

i.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. 31 of Ashoya Ratam., S.H., M.Kn. dated June 19, 2020 and 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 September 30, 2020 and December 31, 2019, respectively, were as follows:

September 30, 2020

December 31, 2019

President Commissioner

Rhenald Kasali

Rhenald Kasali

Commissioner

Alex Denni

-

Commissioner

Rizal Mallarangeng

-

Commissioner

Ahmad Fikri Assegaf

-

Commissioner

Ismail

Ismail

Commissioner

Marcelino Rumambo Pandin

Marcelino Rumambo Pandin

Independent Commissioner

Marsudi Wahyu Kisworo

Marsudi Wahyu Kisworo

Independent Commissioner

Wawan Iriawan

Cahyana Ahmadjayadi

Independent Commissioner

Chandra Arie Setiawan

Margiyono Darsasumarja

President Director

Ririek Adriansyah

Ririek Adriansyah

Director of Finance

Heri Supriadi

Harry Mozarta Zen

Director of Digital Business

Muhammad Fajrin Rasyid

Faizal Rochmad Djoemadi

Director of Strategic Portfolio

Budi Setyawan Wijaya

Achmad Sugiarto

Director of Enterprise and Business

Service

Edi Witjara

Bogi Witjaksono

Director of Wholesale and

International Services

Dian Rachmawan

Edwin Aristiawan

Director of Human Capital

Management

Afriwandi

Edi Witjara

Director of Network, Information

Technology and Solution

Herlan Wijanarko

Zulhelfi Abidin

Director of Consumer Service

FM Venusiana R

Siti Choiriana

                                         

ii.Audit Committee, Corporate Secretary, and Internal Audit

The composition of the Company’s Audit Committee, Corporate Secretary, and Internal Audit as of September 30, 2020 and December 31, 2019, were as follows:

September 30, 2020

December 31, 2019

Chairman

Chandra Arie Setiawan

Margiyono Darsasumarja

Member

Marsudi Wahyu Kisworo

Tjatur Purwadi

Member

Wawan Iriawan

Ismail

Member

Marcelino Rumambo Pandin

Marcelino Rumambo Pandin

Member

Sarimin Mietra Sardi

Sarimin Mietra Sardi

Member

Ahmad Fikri Assegaf

-

Member

Emmanuel Bambang Suyitno

-

Corporate Secretary

Andi Setiawan

Andi Setiawan

Internal Audit

Harry Suseno Hadisoebroto

Harry Suseno Hadisoebroto

iii.Employees

As of September 30, 2020 and December 31,2019, the Company and subsidiaries (“Group”) had 25,416 employees and 24,272 employees, respectively.

8


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

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Nine Months Period Ended September 30, 2020 and 2019 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

Table of Contents

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 21). Profit per ADS information have been retrospectively adjusted to reflect the changes in the ratio of ADS.

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

As of September 30, 2020, all of the Company’s Series B shares are listed on the IDX and 40.929.645ADS shares are listed on the NYSE (Note 21).

9


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

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Nine Months Period Ended September 30, 2020 and 2019 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

Table of Contents

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 September 30, 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 or acquisition

of commercial

September 30,

December 31,

September 30,

December 31,

incorporation

   

by the Company

   

operations

 

2020

   

2019

   

2020

   

2019

PT Telekomunikasi

Telecommunication - provides

1995

65

65

96,900

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

Telecommunication/

1995

100

100

21,199

20,114

Telekomunikasi

May 17, 2001

("Dayamitra"),

Jakarta, Indonesia

PT Multimedia

Network telecommunication

1998

100

100

16,280

16,478

Nusantara

services and multimedia/

("Metra"),

May 9, 2003

Jakarta, Indonesia

PT Telekomunikasi

Telecommunication/

1995

100

100

12,883

10,970

Indonesia International

July 31, 2003

(“TII”),

Jakarta, Indonesia

PT Graha Sarana Duta

Leasing of offices and

1982

100

100

6,165

6,055

("GSD"),

providing building

Jakarta, Indonesia

management and

maintenance services, civil

consultant and developer/

April 25, 2001

PT Telkom Satelit

Telecomunication - provides

1996

100

100

4,699

3,309

Indonesia

satellite communication

("Telkomsat"),

system, services and

Jakarta, Indonesia

facilities/

September 28, 1995

PT Telkom Akses

Construction, service and

2013

100

100

4,070

4,436

(“Telkom Akses”),

trade in the field of

Jakarta, Indonesia

telecommunication/

November 26, 2012

PT PINS Indonesia

Telecommunication

1995

100

100

2,474

2,995

(“PINS”),

construction and services/

Jakarta, Indonesia

August 15, 2002

PT Infrastruktur

Construction, service and

2014

100

100

1,676

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


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

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Nine Months Period Ended September 30, 2020 and 2019 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

Table of Contents

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 or acquisition

of commercial

September 30,

December 31,

September 30,

December 31,

incorporation

   

by the Company

   

operations

   

2020

   

2019

   

2020

   

2019

PT Metra-Net

Multimedia portal service/

2009

100

100

1,325

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