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LONG-TERM INVESTMENTS IN ASSOCIATES
12 Months Ended
Dec. 31, 2021
LONG-TERM INVESTMENTS IN ASSOCIATES  
LONG-TERM INVESTMENTS IN ASSOCIATES

12. LONG-TERM INVESTMENTS IN ASSOCIATES

The details of long-term investments in associates under equity method as of December 31, 2020 are as follows:

2020

Percentage 

Share of 

Share of other

of 

Beginning 

Additions

net profit

comprehensive

Ending

    

ownership

    

balance

    

(Deduction)

    

(loss)

    

Dividend

    

income

    

Impairment

    

balance

Long-term investments in associates:

Jalina

33.00

77

17

(5)

(0)

89

Finaryab

25.00

267

28

(209)

1

87

Tiphonec

24.00

526

(41)

(485)

Indonusad

20.00

210

(210)

Others (each below Rp75 billion)e

130

(33)

(13)

(0)

(68)

16

Total long-term investments in associates

1,210

 

(5)

 

(246)

 

(5)

 

1

(763)

192

Summarized financial information of the Group’s investments accounted for under the equity method as at and for the year ended December 31, 2020:

    

Jalin

    

Finarya

    

Indonusa

    

Others

Statements of financial position

Current assets

187

3,160

565

972

Non-current assets

194

169

331

4,516

Current liabilities

(92)

(2,327)

(318)

(795)

Non-current liabilities

(22)

(41)

(573)

(4,398)

Equity

267

 

961

5

295

Statements of profit or loss and other comprehensive income

Revenues

277

133

783

1,278

Operating expenses

(205)

(948)

(691)

(1,035)

Other income (expenses) including finance costs - net

(3)

69

(24)

(92)

Profit (loss) before tax

69

 

(746)

68

151

Income tax benefit (expense)

(18)

 

2

(6)

(4)

Profit (loss) for the period

51

 

(744)

62

147

Other comprehensive income (loss)

(1)

 

4

7

(27)

Total comprehensive income (loss) for the period

50

 

(740)

69

120

*

The summarized financial information of associated companies above were prepared under Indonesian Financial Accounting Standards. Summary of financial information for Tiphone as of December 31, 2020 is not available

The details of long-term investments in associates under equity method as of December 31, 2021 are as follows:

2021

Share of other

Percentage of 

Beginning 

Additions

Share of net

 comprehensive   

Ending

    

ownership

    

balance

    

(Deductions)

    

profit (loss)

    

Dividend

    

income

    

Impairment

    

balance

Long-term investments in associates:

Jalina

33.00

89

25

(7)

107

Finaryab

24.27

87

(87)

Others (each below Rp75 billion)e

16

33

(16)

(1)

32

Total long-term investments in associates

 

192

 

33

 

(78)

 

(7)

 

(1)

139

Summarized financial information of the Group’s investments accounted for under the equity method as at and for the year ended December 31, 2021:

    

Jalin

    

Finarya

    

Others

Statements of financial position

Current assets

239

1,779

1,248

Non-current assets

237

222

4,720

Current liabilities

(144)

(1,654)

(646)

Non-current liabilities

(8)

(35)

(4,618)

Equity

324

 

312

 

704

Statements of profit or loss and other comprehensive income

Revenues

401

137

1,869

Operating expenses

(311)

(1,160)

(1,436)

Other income (expenses) including finance costs - net

6

31

(106)

Profit (loss) before tax

96

 

(992)

 

327

Income tax benefit (expense)

(19)

 

11

 

(13)

Profit (loss) for the period

77

 

(981)

 

314

Other comprehensive income (loss)

1

 

4

 

(1)

Total comprehensive income (loss) for the period

78

 

(977)

 

313

a

Jalin was previously a subsidiary. On June 19, 2019 the Group sold 67% of its shares to PT Danareksa (Persero) (“Danareksa”) amounted to Rp395 billion.

b

On January 21, 2019, Telkomsel established of PT Fintek Karya Nusantara ("Finarya "), a subsidiary, with an initial investment amounted to Rp25 billion and on February 22, 2019 Telkomsel transferred its assets amounted to Rp150 billion to Finarya. For this transaction, Telkomsel obtained 2,499 and 14,974 shares, respectively (equal to 100% ownership). Telkomsel with PT Mandiri Capital Indonesia, PT BRI Ventura Indonesia, PT BNI Sekuritas, PT Jasamarga Tollroad Operator, PT Dana Tabungan dan Asuransi Pegawai Negeri (Persero), PT Pertamina Retail, PT Kereta Commuter Indonesia ("KCI"), PT Asuransi Jiwasraya (Persero), and PT Danareksa Capital, entered in to shareholder agreement on July 31, 2019, October 31, 2019, and December 31, 2019 relating to the increase in issued and paid up capital made by each shareholder. On December 31, 2019, Telkomsel owned 48,530 shares or equivalent to 26.58% ownership.

On October 23, 2020 Finarya issued 13,632 series B shares, owned by Grab LA Pte Ltd ("Grab") 11,237 shares, PT BRI Ventura Indonesia 943 shares, Mandiri Capital Indonesia 924 shares, Telkomsel 528 shares. This investment decreased Telkomsel’s ownership in PT Finarya, from previously 26.58% and diluted to 25.00%.

On March 8, 2021, PT Dompet Karya Anak Bangsa (“DKAB”) invested in Finarya. This investment diluted Telkomsel’s ownership in Finarya, from previously 25.00% to 24.33%. Since June 2021, Telkomsel’s investment in Finarya has been fully absorbed.

On December 23, 2021, Grab make additional investment in Finarya. This investment diluted Telkomsel’s ownership in Finarya, from previously 24.33% to 24.27%. As of December 31, 2021, the unrecognized share of loss amounting to Rp150.6 billion.

c

Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as cellullar phone including spare parts, accessories, rechargeable credit vouchers, repair service, and content provider through its subsidiaries. On September 18, 2014, the Company through PINS acquired 25% ownership in Tiphone for Rp1,395 billion, including intangible assets and goodwill amounting to Rp188 billion and Rp647 billion, respectively. In 2020, Management has recognized full impairment on its investment in Tiphone considering the doubts over the

continuity of its business, financial condition and suspension of stocks effective June 10, 2020. Management has decided to book full allowance for the investment in Tiphone as of December 31, 2020.

Management has reassessed on December 31, 2021 and concluded that there is no recovery from the impairment in the previous year because there is no data that can support the recovery.

d

Indonusa had been a subsidiary of the Company until 2013 when the Company disposed 80% of its shares ownership in Indonusa. On May 14, 2014, based on the Circular Resolution of the Stockholders of Indonusa as covered by notarial deed No. 57 dated April 23, 2014 of FX Budi Santoso Isbandi, S.H., which was approved by the MoLHR in its Letter No. AHU-02078.40.20.2014 dated April 29, 2014, Indonusa’s stockholders approved an increase in its issued and fully paid capital by Rp80 billion. The Company waived its right to own the new shares issued and transferred it to Metra, as the result, Metra’s ownership in Indonusa increased to 4.33% and the Company’s ownership become 15.67%. Based on management assessment, there was allowance for impairment on investment in Indonusa as of December 31, 2020.

e

The unrecognized share in losses in other investments cumulatively as of December 31, 2020 and 2021 was amounting to Rp228 billion and Rp190 billion, respectively.