21. LONG-TERM LOANS AND OTHER BORROWINGS

Long-term loans and other borrowings consist of the following:


	Notes	2019	2020
Two-step loans	21a	542	384
Bonds and notes	21b	7,467	6,991
Bank loans	21c	21,167	20,581
Other borrowings	21d	3,113	2,605
Total		32,289	30,561

Scheduled principal payments as of December 31, 2020 are as follows:


			Year
	Notes	Total	2022	2023	2024	2025	Thereafter
Two-step loans	21a	384	148	131	105	—	—
Bonds and notes	21b	6,991	2,199	—	—	2,097	2,695
Bank loans	21c	20,581	5,193	4,831	4,210	2,993	3,354
Other borrowings	21d	2,605	1,041	1,052	512	—	—
Total		30,561	8,581	6,014	4,827	5,090	6,049

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 up to July 1994 are payable in Rupiah based on the exchange rate at the date of drawdown. Loans obtained after July 1994 are payable in their original currencies and any resulting foreign exchange gain or loss is borne by the Company.


		2019		2020
		Outstanding		Outstanding
		Foreign currency	Rupiah	Foreign currency	Rupiah
Lenders	Currency	(in millions)	equivalent	(in millions)	equivalent
Overseas banks	Yen	3,839	491	3,072	418
	US$	9	120	4	59
	Rp	—	125	—	91
Total			736		568
Current maturities (Note 20b)			(194)		(184)
Long-term portion			542		384


		Principal payment	Interest payment	Interest rate per
Lenders	Currency	schedule	period	annum
Overseas banks	Yen	Semi-annually	Semi-annually	2.95	%
	US$	Semi-annually	Semi-annually	3.85	%
	Rp	Semi-annually	Semi-annually	7.50	%

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 through 2024.

The Company had used all facilities under the two-step loans program since 2008 and the withdrawal period for the two-step loans 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, 2020, the Company has complied with the above-mentioned ratios.

b. Bonds and notes


		2019	2020
Bonds and notes	Currency	Outstanding	Outstanding
Bonds
2010
Series B	Rp	1,995	—
2015
Series A	Rp	2,200	2,200
Series B	Rp	2,100	2,100
Series C	Rp	1,200	1,200
Series D	Rp	1,500	1,500
Medium Term Notes (“MTN”)
MTN I Telkom 2018
Series B	Rp	200	—
Series C	Rp	296	296
MTN Syariah Ijarah I Telkom 2018
Series B	Rp	296	—
Series C	Rp	182	182
Total		9,969	7,478
Unamortized debt issuance cost		(11)	(9)
Total		9,958	7,469
Current maturities (Note 20b)		(2,491)	(478)
Long-term portion		7,467	6,991

(i) Bonds

2010

Interest payment

Interest rate per

Bonds

Principal

Issuer

Listed on

Issuance date

Maturity date

period

annum

Series B

1,995

The Company

IDX

June 25, 2010

July 6, 2020

Quarterly

10.20

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 13b.viii). The underwriters of the bonds are PT Bahana Securities (“Bahana”), PT BRI Danareksa Sekuritas, and PT Mandiri Sekuritas, and the trustee is Bank CIMB Niaga. Based on the General Meeting of Bondholders on September 26, 2018, the trustee was replaced by BTN.

The Company received the proceeds from the issuance of bonds on July 6, 2010.

The funds received from the public offering of bonds net of issuance costs, were used to finance capital expenditures which consisted of wave broadband (bandwidth, softswitching, datacom, information technology, and others), infrastructure (backbone, metro network, regional metro junction, internet protocol, and satellite system), and to optimize legacy and supporting facilities (fixed wireline and wireless).

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 5:1.

2015

Interest payment

Interest rate

Bonds

Principal

Issuer

Listed on

Issuance date

Maturity date

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 13b.viii). The underwriters of the bonds are Bahana, 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, 2020, the rating of the bonds issued by Pefindo is idAAA (Triple A).

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.

As of December 31, 2020, the Company has complied with the above-mentioned ratios.

(ii) MTN

MTN I Telkom Year 2018

Interest payment

Interest rate

Notes

Currency

Principal

Issuance date

Maturity date

period

per annum

Security

Series A

262

September 4, 2018

September 14, 2019

Quarterly

7.25

All assets

Series B

200

September 4, 2018

September 4, 2020

Quarterly

8.00

All assets

Series C

296

September 4, 2018

September 4, 2021

Quarterly

8.35

All assets

758

Based on Agreement of Issuance and Appointment of Monitoring Agents of MTN I Telkom Year 2018 dated August 31, 2018 as covered by notarial deed No. 24 of Fathiah Helmi, S.H., the Company issued MTN with the principal amount up to Rp758 billion in series.

Bahana, PT BNI Sekuritas, PT CGS-CIMB Sekuritas Indonesia, PT BRI Danareksa Sekuritas, and PT Mandiri Sekuritas act as the Arranger, BTN as the Monitoring Agent and PT Kustodian Sentral Efek Indonesia (“KSEI”) as the Payment Agent and the Custodian. The MTN are traded in private placement programs. The funds obtained from MTN are used for access network and backbone development.

As of December 31, 2020, the rating of the MTN issued by Pefindo is idAAA (Triple A).

According to the 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.

As of December 31, 2020, the Company has complied with the above-mentioned ratios.

MTN Syariah Ijarah I Telkom Year 2018

Annual

Maturity

Return

return

Notes

Currency

Principal

Issuance date

date

period

payment

Security

Series A

264

September 4, 2018

September 14, 2019

Quarterly

The Right to benefit of ijarah objects

Series B

296

September 4, 2018

September 4, 2020

Quarterly

The Right to benefit of ijarah objects

Series C

182

September 4, 2018

September 4, 2021

Quarterly

The Right to benefit of ijarah objects

742

Based on Agreement of Issuance and Appointment of Monitoring Agents of MTN Syariah Ijarah Telkom Year 2018 dated August 31, 2018 as covered by notarial deed No. 26 of Fathiah Helmi, S.H., the Company issued MTN Syariah Ijarah with the principal amount up to Rp742 billion in series.

Bahana, PT BNI Sekuritas, PT CGS-CIMB Sekuritas Indonesia, PT BRI Danareksa Sekuritas, and PT Mandiri Sekuritas act as the Arranger, BTN as the Monitoring Agent and KSEI as the Payment Agent and the Custodian. The MTN Syariah Ijarah are traded in private placement programs. The funds obtained from MTN Syariah Ijarah are used for investment projects. The object of MTN Syariah Ijarah transaction is telecommunication network which is located in the special region of Yogyakarta, its network telecommunication involves cable network, information technology equipments, and other production tools of telecommunication services.

As of December 31, 2020, the rating of the MTN Syariah Ijarah issued by Pefindo is idAAA sy (Triple A Syariah).

According to the 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.

As of December 31, 2020, the Company has complied with the above-mentioned ratios.

c. Bank loans


		2019		2020
		Outstanding		Outstanding
		Foreign		Foreign
		currency	Rupiah	currency	Rupiah
Lenders	Currency	(in millions)	equivalent	(in millions)	equivalent
Related parties
BNI	Rp	—	5,898	—	7,958
Bank Mandiri	Rp	—	7,611	—	6,203
BRI	Rp	—	1,758	—	2,822
BNI Syariah	Rp	—	52	—	43
Sub-total			15,319		17,026
Third parties
BCA	Rp	—	1,665	—	3,145
MUFG Bank	Rp	—	2,981	—	2,596
	US$	8	108	—	—
Syndication of banks	Rp	—	1,250	—	1,326
	US$	37	514	30	427
Bank DBS	Rp	—	770	—	1,378
Bank Permata	Rp	—	—	—	757
UOB Singapore	US$	40	556	31	437
ANZ	Rp	—	440	—	374
Bank CIMB Niaga	Rp	—	439	—	307
HSBC	Rp	—	500	—	214
BTPN	Rp	—	537	—	173
PT Bank ICBC Indonesia ("ICBC")	Rp	—	159	—	113
Citibank	Rp	—	500	—	—
Bank of China	Rp	—	500	—	—
UOB Indonesia	Rp	—	357	—	—
Others (each below Rp75 billion)	Rp	—	9	—	—
	MYR	19	66	12	41
Sub-total			11,351		11,288
Total			26,670		28,314
Unamortized debt issuance cost			(65)		(85)
Gain in debt restructuring			(4)		—
			26,601		28,229
Current maturities (Note 20b)			(5,434)		(7,648)
Long-term portion			21,167		20,581

Other significant information relating to bank loans as of December 31, 2020 is as follows:

Current

Total

period

Principal

Interest

facility

payment

Interest rate

Borrower

Currency

(in billions)*

schedule

period

per annum

Security**

BNI

2018

GSD

182

2018 - 2021

Monthly

8.75%

Trade receivables

2013 - 2019

The Company, GSD, TLT, Sigma, Dayamitra, Telkom Infratel

9,752

1,197

2016 - 2033

Monthly,
Quarterly

1 month JIBOR + 2.20% - 2.50%;
3 months JIBOR + 1.70% - 2.25%

Trade receivables, inventory, and property and equipment and all assets

Bank Mandiri

2017 - 2018

The Company, Balebat

680

133

2018 - 2024

Monthly,
Quarterly

8.50% - 9.00%

Trade receivables, inventory, and property and equipment

2017- 2019

The Company, GSD, Dayamitra, Telkomsela

6,138

208

2019 - 2026

Quarterly

3 months JIBOR + 0.60% - 1.85%

None

BRI

2017 - 2019

The Company, Dayamitra, GSD

3,253

236

2019 - 2026

Quarterly

3 months JIBOR + 1.70% - 2.00%

Property and equipment and all assets

Current

Total

period

Principal

Interest

facility

payment

rate per

Borrower

Currency

(in billions)*

schedule

period

annum

Security**

BCA

2017 - 2020

The Company,
Metra,
Dayamitra,
Telkom
Infratel, PST

7,981

244

2017 - 2027

Quarterly

3 months JIBOR + 1.50% - 2.25%

Property and equipment

MUFG Bank

2016 - 2020

GSD, Metra, Dayamitra

3,700

618

2016 - 2027

Quarterly

3 months JIBOR + 1.43% - 2.40%

Property and equipment

Syndication of banks

2015 - 2020

The Company, GSD, Dayamitra

4,000

500

2016 - 2027

Quarterly

3 months JIBOR + 2.00% - 2.75%

Property and equipment and all assets

2018

TII

US$

0.09

0.007

2019 - 2025

Semi-annually

6 months LIBOR + 1.25%

None

DBS

2016

Nutech

2017 - 2021

Monthly

10.00%

Trade receivables and property and equipment

2017 - 2020

PINS,
Dayamitra,
Telkomsat

1,830

191

2018 - 2027

Quarterly

3 months JIBOR + 1.50% - 2.45%

Property and equipment

Bank Permata

2020

Nutech

0.7

2020 - 2027

Monthly

9.25%

Property and equipment

2020

Dayamitra

750

—

2021 - 2027

Quarterly

3 months JIBOR + 1.50%

Property and equipment

UOB Singapore

2016

TII

US$

0.049

0.009

2019 - 2024

Semi-annually

6 months LIBOR + 1.25%

None

ANZ

2015 - 2020

GSD, PINS

500

2020 - 2025

Quarterly

3 months JIBOR + 1.40% - 2.00%

Property and equipment

Bank CIMB

Niaga

2017 - 2019

GSD, Metra

695

125

2018 - 2024

Quarterly

3 months JIBOR + 1.425% - 1.50%

None

HSBC

2020

Telkomsat

214

—

31 Desember 2021

Annually

12 months JIBOR + 0.80%

None

BTPN

2017 - 2019

GSD, Metra, Dayamitra, TII

559

2018 - 2023

Quarterly

3 months JIBOR + 1.435% - 1.50%

None

ICBC

2017

GSD

272

2017 - 2024

Quarterly

3 months JIBOR + 2.36%

Trade receivables and property and equipment

* In original currency

** Refer to Notes 6,8, and 13 for details of trade receivables, inventories, and property and equipment pledged as collaterals.

a Telkomsel has no collateral for its bank loans, or other credit facilities. The terms of the various agreements with Telkomsel’s lenders and financiers require compliance with a number of covenants and negative covenants as well as financial and other covenants, which include, among other things, certain restrictions on the amount of dividends and other profit distributions which could adversely affect Telkomsel’s capacity to comply with its obligation under the facility. The terms of the relevant agreements also contain default and cross default clauses. As of December 31, 2020 Telkomsel has complied with the above covenants.

On March 13, 2015, the Company, GSD, Metra, and Infomedia entered into several credit facilities agreements with BTPN, MUFG Bank, ANZ, and syndication of banks (BCA and BNI) with total facilities amounting to Rp750 billion, Rp750 billion, Rp500 billion, and Rp3,000 billion, respectively. Based on amendment on August 2, 2016, Dayamitra and Telkom Akses are included as borrowers into BTPN and MUFG Bank credit facilities agreement and excluded GSD from those agreement. Based on the latest amendment on March 13, 2017, PINS is included as one of borrower into ANZ's credit facility agreement. In 2017, PINS withdrawn the facility amounted to Rp200 billion.

On March, 24, 2017, the Company, Dayamitra, Sigma, GSD, and TII entered several credit agreements with BRI, BNI, and Bank Mandiri with total facilities amounting to Rp1,000 billion, Rp2,005 billion and Rp1,500 billion, respectively.

On March 30, 2017, The Company, GSD, Metra, Dayamitra, PINS, and Telkomsat entered into several credit agreements with MUFG Bank, BTPN, Bank DBS, Bank CIMB Niaga, and BCA with total facilities amounting to Rp400 billion, Rp400 billion, Rp850 billion, Rp495 billion, and Rp850 billion, respectively. Based on amendment on June 29, 2017, Telkom Infratel is included as one of borrower into BCA's credit facility agreement replaced PINS.

On February 26, 2018, the Company and TII entered into a credit agreements with Bank Mandiri with total facilities amounting to Rp775 billion, respectively.

On March 27, 2018 and May 23, 2019, the Company and Dayamitra entered into several credit agreements with MUFG Bank and BRI Bank with total facilities amounting to Rp800 billion and Rp200 billion, respectively.

On January 15, 2019, the Company, Infomedia, TII, Telkom Infratel, Telkomsat, and Sigma entered into a credit agreements with BTPN with total facilities amounting to Rp628 billion. As of December 31, 2020, the unused facility for BTPN amounted to Rp538 billion.

On June 19, 2019, the Company and Dayamitra entered into a credit agreement with BNI with total facilities amounting to Rp2,160 billion and Rp840 billion, respectively. As of December 31, 2020, all facilities has been used.

On August 18, 2020, the Company entered into a credit agreements with BCA with total facilities amounting to Rp4,000 billion. As of December 31, 2020, the unused facility for BCA amounted to Rp2,500 billion.

On November 16, 2020, The Company, Dayamitra, and GSD entered into a credit agreement amendments with Bank Mandiri with total facilities amounting to Rp1,400 billion, Rp1,113 billion, and Rp200 billion, respectively. As of December 31, 2020, the unused facility for Bank Mandiri amounted to Rp136.1 billion.

On December 4, 2020, The Company and Admedika entered into a credit agreement with BTPN with total facilities amounting to Rp1,500 billion. As of December 31, 2020, all facilities has not been used.

On December 11, 2020, The Company, PINS, and GSD entered into a credit agreement amendments with Bank CIMB Niaga with total facilities amounting to Rp500 billion, Rp300 billion, and Rp200 billion, respectively. As of December 31, 2020, the unused facility for Bank CIMB Niaga amounted to Rp908 billion.

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, 2020, the Group has complied with all covenants or restrictions, except for certain loans. As of December 31, 2020, the Group obtained waiver from lenders for the non-fulfillment financial ratios in Sigma, Telkom Infratel, and GSD. The waivers from BNI, HSBC, BCA, Bank Mandiri, and ICBC were received on December 28, 2020, December 29, 2020, and December 31, 2020, respectively.

The credit facilities were obtained by the Group for working capital purposes.

d. Other borrowings


		Outstanding
Lenders	Currency	2019	2020
PT Sarana Multi Infrastruktur	Rp	3,748	3,652
Unamortized debt issuance cost		(8)	(7)
Total		3,740	3,645
Current maturities (Note 20b)		(627)	(1,040)
Long-term portion		3,113	2,605

Other significant information relating to other borrowings as of December 31, 2020 is as follows:

Total facility

Current period

Principal payment

Interest rate

Borrower

Currency

(in billions)

payment (in billions)

schedule

per annum

Security

PT Sarana Multi

Infrastruktur

November 14, 2018

The Company

1,000

220

Semi-annually
(2019-2023)

3 months JIBOR + 1.75%

None

March 29, 2019

The Company

2,836

350

Quarterly (2020 -2024)

8.49%

None

October 12, 2016

Dayamitra

700

100

Semi-annually
(2018-2024)

3 months JIBOR + 1.85%

Property and equipment

March 29, 2017

Dayamitra

600

514

Semi-annually
(2018-2024)

3 months JIBOR + 1.85%

Property and equipment

March 29, 2019

Telkomsat

164

Semi-annually (2020-2024)

8.49%

None

Under the agreement, the Company, Dayamitra, and Telkomsat 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, except Dayamitra should not exceed 5:1

(b)Net debt EBITDA to interest ratio should not be less than 4:1

(c)Debt service coverage is at least 125%, except Dayamitra is at least 100%

As of December 31, 2020, the Company, Dayamitra, and Telkomsat has complied with the above-mentioned ratios.

On June 15, 2020, The Company, Telkomsat, and Telkom Infratel entered into a credit agreement amendments with PT Sarana Multi Infrastruktur amounting to Rp2,836 billion, Rp164 billion, and RpNil, respectively. As of December 31, 2020, the unused facility for PT Sarana Multi Infrastruktur amounted to Rp106 billion.