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.

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:

As of December 31, 2021, the Company has complied with the above-mentioned ratios.

b. Bonds and notes


		2020	2021
Bonds and notes	Currency	Outstanding	Outstanding
Bonds
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 C	Rp	296	—
MTN Syariah Ijarah I Telkom 2018
Series C	Rp	182	—
Total		7,478	7,000
Unamortized debt issuance cost		(9)	(7)
Total		7,469	6,993
Current maturities (Note 20b)		(478)	(2,200)
Long-term portion		6,991	4,793

(i) Bonds

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.x). 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, 2021, 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, 2021, the Company has complied with the above-mentioned ratios.

(ii) MTN

MTN I Telkom Year 2018

Issuance

Maturity

Interest payment

Interest rate

Notes

Currency

Principal

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, 2021, all MTN had been repaid.

MTN Syariah Ijarah I Telkom Year 2018

Annual

Issuance

Maturity

Return

return

Notes

Currency

Principal

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, 2021, all MTN Syariah Ijarah had been repaid.

c. Bank loans


		2020		2021
		Outstanding		Outstanding
		Foreign		Foreign
		currency	Rupiah	currency	Rupiah
Lenders	Currency	(in millions)	equivalent	(in millions)	equivalent
Related parties
BNI	Rp	—	7,958	—	7,500
Bank Mandiri	Rp	—	6,203	—	7,374
BRI	Rp	—	2,822	—	2,223
BSI	Rp	—	43	—	533
Sub-total			17,026		17,630
Third parties
BCA	Rp	—	3,145	—	8,651
Bank DBS	Rp	—	1,378	—	3,887
MUFG Bank	Rp	—	2,596	—	1,972
Bank Permata	Rp	—	757	—	1,188
HSBC	Rp	—	214	—	750
Bank of China	Rp	—	—	—	400
Syndication of banks	Rp	—	1,326	—	350
	US$	30	427	24	338
UOB Singapore	US$	31	437	22	314
PT Bank ANZ Indonesia ("Bank ANZ")	Rp	—	374	—	286
Bank CIMB Niaga	Rp	—	307	—	194
	US$	—	—	0	5
BTPN	Rp	—	173	—	84
PT Bank ICBC Indonesia ("ICBC")	Rp	—	113	—	68
Others (each below Rp75 billion)	MYR	12	41	11	36
Sub-total			11,288		18,523
Total			28,314		36,153
Unamortized debt issuance cost			(85)		(97)
			28,229		36,056
Current maturities (Note 20b)			(7,648)		(6,311)
Long-term portion			20,581		29,745

Other significant information relating to bank loans as of December 31, 2021 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

2020 - 2024

Monthly

8.75%

Trade receivables

2013 - 2021

The Company, GSD, TLT, Sigma, Mitratel, Telkomsel^a

12,902

2,834

2016 - 2033

Monthly, Quarterly

1 month JIBOR + 0.50% - 2.50%;
3 months JIBOR + 1.70% - 2.25%

Trade receivables, inventory, and property and equipment

Bank Mandiri

2018

Balebat

2018 - 2022

Monthly

9.00%

Trade receivables, inventory, and property and equipment

2017- 2021

The Company, GSD, Mitratel,

8,793

828

2019 - 2028

Quarterly

3 months JIBOR +
1.50% - 2.25%

Property and equipment

Current

Total

period

Principal

Interest

facility

payment

rate per

Borrower

Currency

(in billions)*

schedule

period

annum

Security**

BRI

2017 - 2019

The Company, Mitratel, GSD

3,253

600

2019 - 2026

Quarterly

3 months JIBOR +
1.70% - 2.00%

Property and equipment

BSI

2019 - 2021

SSI, Telkomsel^a

560

160

2019 - 2024

Monthly

3.80% - 10.00%

Property and equipment

BCA

2017 - 2021

The Company, Mitratel, Telkom Infra, PST

11,811

287

2018 - 2028

Quarterly,
Semi-annually

3 months JIBOR +
1.50% - 1.85%

Trade receivables and property and equipment

DBS

2017 - 2019

PINS, Mitratel, Telkomsat

4,530

191

2018 - 2028

Quarterly, Semi-annually

3 months JIBOR +
1.50% - 1.85%

Property and equipment

MUFG Bank

2016 - 2021

Mitratel, GSD

3,600

593

2016 - 2028

Quarterly

3 months JIBOR +
1.43% - 2.40%

Property and equipment

Bank Permata

2020 - 2021

Mitratel

1,250

2021 - 2028

Semi-annually

3 months JIBOR +
1.50% - 2.40%

Property and equipment

HSBC

2021

Mitratel

750

2023 - 2028

Semi-annually

3 months
JIBOR + 1.50%

Property and equipment

Bank of China

2019

Telkomsel^a

1,000

2021 - 2023

Semi-annually

3 months
JIBOR + 0.60%

None

Syndication
of banks

2015 - 2021

The Company, GSD

8,000

500

2016 - 2028

Quarterly

3 months JIBOR +
2.00% - 2.50%

None

2018

Telin

US$

0.09

0.007

2019 - 2025

Semi-annually

6 months
LIBOR + 1.25%

None

UOB Singapore

2018

Telin

US$

0.049

0.009

2019 - 2024

Semi-annually

6 months
LIBOR + 1.25%

None

ANZ

2015

GSD, PINS

440

2020 - 2025

Quarterly

3 months
JIBOR + 1.40%

None

Bank CIMB

Niaga

2017 - 2019

GSD, PINS

700

2018 - 2025

Quarterly

3 months JIBOR +
1.50% - 1.95%

None

2021

Telin

US$

0.055

2024 - 2029

Semi-annually

6 months
LIBOR + 1.70%

None

BTPN

2017 - 2020

GSD, Mitratel, Telin, Admedika

489

2018 - 2025

Quarterly

3 months JIBOR +
1.435% - 2.00%

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.

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, 2021 Telkomsel has complied with the above covenants

On March 13, 2015, the Company and GSD entered into credit agreements with syndication of banks (BCA and BNI) with total facilities amounting to Rp3,000 billion. As of December 31, 2021, all facilities had been used.

On March, 24, 2017, the Company, Mitratel, Sigma, GSD, and Telin entered into 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. As of December 31, 2021, the unused facility for Bank Mandiri amounted to Rp5 billion.

On March 30, 2017, the Company, GSD, Metra, Mitratel, PINS, and Telkomsat entered into several credit agreements with BTPN, Bank DBS, Bank CIMB Niaga, and BCA with total facilities amounting to Rp400 billion, Rp850 billion, Rp495 billion, and Rp850 billion, respectively. Based on amendment on June 29, 2017, Telkom Infra is included as one of borrower into BCA's credit facility agreement replaced PINS. As of December 31, 2021, the unused facilities for BTPN, Bank DBS, Bank CIMB Niaga and BCA amounted to Rp79 billion, Rp420 billion, Rp20 billion and Rp564 billion, respectively.

On February 26, 2018, the Company entered into a credit agreement with Bank Mandiri with total facilities amounting to Rp775 billion. As of December 31, 2021, all facilities had been used.

On February 26, 2018, the Company entered into a credit agreement with BNI with total facilities amounting to Rp825 billion. As of December 31, 2021, all facilities had been used.

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

Rp200 billion, respectively. As of December 31, 2021, all facilities had been used.

On January 15, 2019, the Company, Infomedia, Telin, Telkom Infra, Telkomsat, and Sigma entered into a credit agreement with BTPN with total facilities amounting to Rp628 billion. As of December 31, 2021, the unused facility for BTPN amounted to Rp538 billion.

On May 23, 2019, the Company entered into a credit agreement with BRI with total facilities amounting to Rp2,000 billion. As of December 31, 2021, all facilities had been used.

On June 19, 2019, the Company and Mitratel entered into credit agreements with BNI with total facilities amounting to Rp2,160 billion and Rp840 billion, respectively. As of December 31, 2021, all facilities had been used.

On March 12, 2020, the Company, GSD, and PINS entered into credit agreements amendments with Bank ANZ with total facilities amounting to Rp240 billion and Rp200 billion, respectively. As of December 31, 2021, all facilities had been used.

On November 16, 2020, the Company, Mitratel, and GSD entered into credit agreements amendments with Bank Mandiri with total facilities amounting to Rp1,400 billion, Rp1,113 billion, and Rp200 billion, respectively. As of December 31, 2021, the unused facility for Bank Mandiri amounted to Rp136 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, 2021, the unused facility for BTPN amounted to Rp1,480 billion.

On January 18, 2021, the Company entered into a credit agreement with BRI with total facilities amounting to Rp1,000 billion. As of December 31, 2021, the facilities has not been used.

On January 28, 2021, the Company entered into a credit agreement with Syndication of banks (Bank Mandiri and BNI) with total facilities amounting to Rp5,000 billion. As of December 31, 2021, the unused facility for Syndication of banks amounted to Rp4,900 billion.

On October 28, 2021, the Company entered into a credit agreement with BCA with total facilities amounting to Rp6,000 billion. As of December 31, 2021, the unused facility for BCA amounted to Rp2,500 billion.

On November 8, 2021, the Company, GSD, Metra, and Mitratel entered into a credit agreement amendment with MUFG Bank with total facilities amounting to Rp400 billion. As of December 31, 2021, the unused facility for MUFG Bank amounted to Rp79 billion.

On November 17, 2021, the Company entered into a credit agreement with Bank Mandiri with total facilities amounting to Rp2,400 billion. As of December 31, 2021, all facilities had been used.

On November 22, 2021, the Company, PINS, and GSD entered into credit agreement amendments with Bank CIMB Niaga with total facilities amounting to Rp500 billion, Rp300 billion, and Rp200 billion, respectively. As of December 31, 2021, the unused facility for Bank CIMB Niaga amounted to Rp796.6 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, 2021, the Group has complied with all covenants or restrictions, except for certain loans. As of December 31, 2021, the Group obtained waivers from lenders for the non-fulfillment financial ratios in Telkom Infra, Sigma and GSD. The waivers from BNI, BCA, Bank DBS, HSBC, Bank Mandiri, and ICBC were received on November 29, 2021, December 16, 2021, December 15, 2021, December 22, 2021, December 30, 2021, and December 31, 2021.

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

d. Other borrowings


		Outstanding
Lenders	Currency	2020	2021
PT Sarana Multi Infrastruktur	Rp	3,652	2,609
Unamortized debt issuance cost		(7)	(4)
Total		3,645	2,605
Current maturities (Note 20b)		(1,040)	(1,041)
Long-term portion		2,605	1,564

Other significant information relating to other borrowings as of December 31, 2021 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

700

Semi-annually
(2020 - 2024)

3 months
JIBOR + 1.75%

None

October 12, 2016

Mitratel

700

100

Semi-annually
(2018 - 2024)

3 months
JIBOR + 1.85%

Property and equipment

March 29, 2019

Telkomsat

164

Semi-annually
(2020 - 2024)

3 months
JIBOR + 1.75%

None

Under the agreement, the Company, Mitratel, and Telkomsat are 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 Mitratel should not exceed 5:1

(b)

Net debt EBITDA to interest ratio should not be less than 4:1, except Mitratel should not exceed 5:1

(c)

Debt service coverage is at least 125%, except Mitratel is at least 100%

As of December 31, 2021, the Company, Mitratel, and Telkomsat has complied with the above-mentioned ratios.

On November 14, 2018, the Company entered into a credit agreement with PT. Sarana Multi Infrastruktur with total facilities amounting to Rp1,000 billion. As of December 31, 2021, all facilities had been used.

On June 15, 2020, the Company, Telkomsat, and Telkom Infra entered into credit agreements amendments with PT Sarana Multi Infrastruktur with total facilities amounting to Rp2,836 billion, Rp164 billion, and RpNil, respectively. As of December 31, 2021, the unused facility for PT Sarana Multi Infrastruktur amounted to Rp106 billion.