[PDF] BUILDING INDONESIAN DIGITAL ECONOMY





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ACCOUNTING FROM INCOMPLETE RECORDS

31 mars 2016 ACCOUNTING. Particulars of other assets and liabilities are as follows: 1st January. 2016. 31st December



BUILDING INDONESIAN DIGITAL ECONOMY

14 déc. 2016 ... for the performance period of 1 January to 31 December 2016. ... Telkom won an award in Metro TV's Economic Challenges Award 2016.



BUILDING INDONESIAN DIGITAL ECONOMY

14 déc. 2016 ... for the performance period of 1 January to 31 December 2016. ... Telkom won an award in Metro TV's Economic Challenges Award 2016.



Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah

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ANNUAL REPORT 2016

CHF 6.8 billion at December 31 2016; an increase of Since January 1



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2016

Annual

Report

BUIL

DING INDONESIAN

DIGI

TAL ECONOMY

PT Telkom Indonesia (Persero) Tbk 2

TELKOM GROUPFINANCIAL AND

OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS

DISCLAIMER

This is the

A nnual Report of PT Telkom Indonesia (Persero) Tbk, or referred to as “ Report" for the performance period of 1 January to 31 December 2016. I nformation and data presented in this

Report are relevant and signi?cant for

investors, the Government of the Republic of Indonesia, and other stakeholders.

PT Telkom

I ndonesia (Persero) Tbk, or referred to as “Telkom", compiled this report based on the applicable regulations in I ndonesia, namely the Financial S ervices Authority Circular No.30/SEOJK.04/2016 about Structure and Content of the A nnual Report of Public Companies. Some of the information and data in this Report also appear in the Form 20-F according to the rules of the Securities and E xchange Commission (SEC) in the United States, but this Report or its parts is not coupled with the Form 20-F

Report.

The mention of “Telkom Group" in this report refers to the Telkom business group that includes the parent company, its subsidiaries and tier 2 subsidiaries operating in I ndonesia and abroad. The word “government" mentioned in this report refers to the Government of the

Republic of Indonesia, while the word

“America" refers to Government of the United States of America. The information and data presented in this report are derived from the Consolidated Financial Statements of Telkom and its subsidiaries and other reliable sources. Presentation of information and ?nancial data in this report are in R upiah ( R p) or U S

Dollar (U

S Forward-looking statements in this report contain targets, expectations, forecasts, estimates, or projections of Telkom for the foreseeable future. The statements are disclosed by Telkom with a thorough consideration but contain risks of uncertainty in the future due to various factors. Therefore, in line with good corporate governance standards, Telkom states that it cannot guarantee that the foresights will be ful?lled completely.

PT Telkom Indonesia (Persero) Tbk 3

TELKOM GROUPFINANCIAL AND

OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS

PT Telkom Indonesia (Persero) Tbk 4

TELKOM GROUPFINANCIAL AND

OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS

REPORT

THEMES

Building Indonesian Digital Economy

Indonesian society is increasingly feeling the presence of the digital era to enter many areas of life,

following the global trend. Digitalization has changed human behavior, especially in the economic ?eld,

as business processes become faster, more ecient and more eective. At the same time, the digital era oers new economic opportunities that we have never seen before, through a variety of creative ways

based on digital services. The business model in transaction is also moving fast, from conventional market

system to the marketplace of e-commerce platform, which no longer has boundaries, both for producers and consumers.

In the face of these changes, Telkom is preparing itself by building digital infrastructure and its supporting

ecosystem thoroughly and sustainably. Telkom builds infrastructure that includes three components,

namely id-Access, id-Ring and id-Con, or known as the Indonesia Digital Network (“IDN"). For id-Access,

which is a network of ?ber-based access to customers' homes, Telkom already has more than 16.4 million

of homes-passed; for id-Ring , which is a broadband highway, Telkom has built 106,000 kilometers of ?ber- based backbone that connects many islands throughout Indonesia from Sabang to Merauke; while for id- Con, a cloud service which is integrated with Telkom Group's network, more than 95,000 m 2 gross facility data centers have been built in various locations both locally and abroad.

Telkom has an online shopping platform (marketplace) which continues to develop, namely blanja.com, as

part of the ecosystem of the digital economy, which is expected to encourage the marketing of various

products in a faster, easier, cheaper way, and to reach a larger area. Telkom is also developing a variety of

applications that brings convenience and is able to stimulate economic activities. The three components

of the IDN, along with its supporting ecosystem, are the main foundation of Telkom in stepping forward to

be the leader in building digital economy in Indonesia.

As a country with a population of more than 250 million, Indonesia has very large potentials of digital

economy. People's increasingly high internet literacy driven by the widespread use of smartphones and

?xed-broadband becomes an essential component for the growth of the digital economy, in addition to the

availability of various supporting applications or contents, the readiness of small and medium enterprises

(SMEs) to be able to make standardized products, and the support of reliable logistics network. The

government has seen the existing great potentials, and declared Indonesia as the largest digital economy

country in Southeast Asia in 2020.

This Annual Report entitling “Developing Indonesia's Digital Economy" is a continuation of the previous

theme, which is “Developing Indonesia's Digital Society". The current theme illustrates the readiness of

Telkom Group in the transformation toward its vision that is to Be the King of Digital, which also plays

an important role in accelerating the growth of digital economy of Indonesian society. As the pride of

Indonesia, Telkom Group will continue to move ahead with the society to create prosperity in the present

and in the future.

TELKOM GROUPFINANCIAL AND

OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSISCORPORATE GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS

CONTINUITY OF

THEME

2016 | Building Indonesian Digital Economy

2014

2014 | Sustainable Competitive Growth

through Digital Business 2013

2013 | Creating Global Talents and Opportunities

2012

2012 | Bringing Indonesia to the

Digital Society

2015 | Building Indonesian Digital Society

2015
2016
Telkom is a State-Owned Enterprise (“SOE") conducting business in the eld of integrated telecommunications services and networks in Indonesia operating domestically and abroad. 100%
100%
65%
100%
100%
100%
100%
100%

99.99%

100%
100%

TELKOM GROUPFINANCIAL AND

OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSIS

Company Name

PT Telkom Indonesia (Persero) Tbk

Commercial Name

Telkom

Category of Goods and Services

Telecommunication and information

Media and edutainment

Infrastructure

Legality

Tax Identi?cation Number 01.000.013.1-093.000

Certi?cate of Company Registration 101116407740

Business License 510/3-0689/2013/7985-BPPT

Address and Contact Details of Main Oce

Graha Merah Putih, Jl. Japati No. 1, Bandung, West Java,

Indonesia - 40133

Telephone:

+62-22-4521404

Facsimile:

+62-22-7206757

Call Center:

147

Website:

www.telkom.co.id

E-mail:

corporate_comm@telkom.co.id, investor@telkom.co.id

Facebook:

TelkomIndonesia

Instagram:

telkomindonesia

Twitter:

@telkomindonesia

Important Dates

Oktober 23, 1856:

Telkom's Establishment

November 19, 1991:

Transformation into Perusahaan Perseroan (Persero) PT Telekomunikasi IndonesiaLegal Basis for Establishment

Pursuant to Government Regulation No.25 of 1991,

the status of the Company is changed into a state- owned limited liability company (“persero") according to the Notarial Deed of Imas Fatimah, S.H. No.128 of September 24, 1991, as approved by the Minister of Justice of the Republic of Indonesia through Decision No. C2-6870.HT.01.01.Year.1991 dated November 19, 1991, as announced in the State Gazette of the Republic of Indonesia No.5 dated January 17, 1992, Supplement to the State Gazette No.210.

Ownership

The Government of the Republic of Indonesia 52.09%,

Public 47.91%

Listing in the Stock Exchange

The Company stock is listed at BEI/IDX and NYSE on November 14, 1995 with the stock code “TLKM" at BEI, Jakarta, Indonesia and “TLK" at the NYSE, New York,

United States.

Authorized Capital

1 A Series Dwiwarna Share and

399,999,999,999 B shares Series

Issued and Fully Paid Capital

1 A Series Dwiwarna Share and

100,799,996,399 B shares Series

Rating

id AAA (Pe?ndo) for the year 2012, 2013, 2014, 2015 and 2016

Service Centers

7

Telkom Regional Oces (“Telkom Regional")

59

Telecommunication Zones

566

Plasa Telkom Outlets

7

International GraPARI in Mecca - Saudi Arabia,

Singapore, Hong Kong, Macau, Taipei & Tainan -

Taiwan and Malaysia

416

GraPARI, including those managed by third

parties 487

GraPARI Mobile Units

Subsidiary Entities and Associations

12

Direct Subsidiaries (including 1 subsidiary

that is no longer in operation) 21

Indirect Subsidiaries

CORPORATE

GOVERNANCECORPORATE SOCIAL RESPONSIBILITYPARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMAPPENDICESCONSOLIDATED FINANCIAL STATEMENTS

PT Telkom Indonesia (Persero) Tbk 8

PT Telkom Indonesia (Persero) Tbk 8

PT Telekomunikasi Seluler(Telkomsel)

Telkomsel is one of Indonesia"s most

prominent cellular operators with more than

173.9 million customers, 129,033 BTS with the

widest network in Indonesia.

Product and Services:

segment

PT Multimedia Nusantara (Telkom Metra)

Telkom Metra conducts business activities

in the eld of network and multimedia management, covering, among others: data communications system services, portal services and online transaction service.

It is a strategic holding company transaction

services in the information, media and services (IMES) industry.

Product and Services:

www.metra.co.id

PT Telkom Akses(Telkom Akses)

Telkom Akses provides construction and

xed-broadband network infrastructure construction services.

Product and Services:

Telkom Akses" main portfolios are the

construction services (deployment), xed broadband access networks, and operations & maintenance services of xed broadband access networks (managed services).

PT Patra Telekomunikasi (Patrakom)

Patrakom manages a broadband satellite

business for the Maritime, Energy,

Telecommunication, Plantation, Banking and

Government business segments.

Product and Services:

www.telkomproperty.co.id

PT Graha Sarana Duta (GSD)

Telkom Property conducts four types of

business, namely property management, property development, property lease and property facilities

Product and Services:

for corporate business needs, accommodation facilities in the form of a hotel with 291 rooms. ocial vehicles. www.patrakom.co.id www.telkomakses.co.id www.telkomsel.com

TELKOM GROUPFINANCIAL AND

OPERATIONAL HIGHLIGHTSMANAGEMENT REPORTABOUT TELKOM INDONESIAMANAGEMENT DISCUSSION AND ANALYSIS

PT Telkom Indonesia (Persero) Tbk 9

PT Dayamitra Telekomunikasi(Mitratel)

Mitratel builds and manages

telecommunications tower facilities and infrastructure as well as four main business segments, namely built to suit (B2S), collocation and reseller, microcell, project and tower related services.

Product and Services:

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