6. TRADE AND OTHER RECEIVABLES
The breakdown of trade and other receivables is as follows:
|
|
|
2016 |
|
2017 |
|
Trade receivables |
|
10,353 |
|
13,553 |
|
Provision for impairment of receivables |
|
(2,990) |
|
(4,331) |
|
Net |
|
7,363 |
|
9,222 |
|
Other receivables |
|
542 |
|
346 |
|
Provision for impairment of receivables |
|
(5) |
|
(4) |
|
Net |
|
537 |
|
342 |
|
Total trade and other receivables |
|
7,900 |
|
9,564 |
Trade receivables arise from services provided to both retail and non-retail customers, with details as follows:
a. By debtor
(i) Related parties
|
|
|
2016 |
|
2017 |
|
State-owned enterprises |
|
151 |
|
721 |
|
Government agencies |
|
676 |
|
519 |
|
Indonusa |
|
431 |
|
465 |
|
PT Indosat Tbk (“Indosat”) |
|
370 |
|
372 |
|
Others |
|
348 |
|
670 |
|
Total |
|
1,976 |
|
2,747 |
|
Provision for impairment of receivables |
|
(488) |
|
(883) |
|
Net |
|
1,488 |
|
1,864 |
(ii) Third parties
|
|
|
2016 |
|
2017 |
|
Individual and business subscribers |
|
7,125 |
|
9,289 |
|
Overseas international carriers |
|
1,252 |
|
1,517 |
|
Total |
|
8,377 |
|
10,806 |
|
Provision for impairment of receivables |
|
(2,502) |
|
(3,448) |
|
Net |
|
5,875 |
|
7,358 |
b. By age
(i) Related parties
|
|
|
2016 |
|
2017 |
|
Up to 3 months |
|
1,065 |
|
1,721 |
|
3 to 6 months |
|
100 |
|
107 |
|
More than 6 months |
|
811 |
|
919 |
|
Total |
|
1,976 |
|
2,747 |
|
Provision for impairment of receivables |
|
(488) |
|
(883) |
|
Net |
|
1,488 |
|
1,864 |
(ii) Third parties
|
|
|
2016 |
|
2017 |
|
Up to 3 months |
|
5,191 |
|
6,493 |
|
3 to 6 months |
|
597 |
|
681 |
|
More than 6 months |
|
2,589 |
|
3,632 |
|
Total |
|
8,377 |
|
10,806 |
|
Provision for impairment of receivables |
|
(2,502) |
|
(3,448) |
|
Net |
|
5,875 |
|
7,358 |
(iii) Aging of total trade receivables
|
|
|
2016 |
|
2017 |
||||
|
|
|
|
|
Provision for |
|
|
|
Provision for |
|
|
|
|
|
impairment of |
|
|
|
impairment of |
|
|
|
Gross |
|
receivables |
|
Gross |
|
receivables |
|
Not past due |
|
4,535 |
|
177 |
|
6,788 |
|
920 |
|
Past due up to 3 months |
|
1,721 |
|
401 |
|
1,426 |
|
281 |
|
Past due more than 3 to 6 months |
|
697 |
|
495 |
|
788 |
|
258 |
|
Past due more than 6 months |
|
3,400 |
|
1,917 |
|
4,551 |
|
2,872 |
|
Total |
|
10,353 |
|
2,990 |
|
13,553 |
|
4,331 |
The Group has made provision for impairment of trade receivables based on the collective assessment of historical impairment rates and individual assessment of its customers’ credit history. The Group does not apply a distinction between related party and third party receivables in assessing amounts past due. As of December 31, 2016 and 2017, the carrying amounts of trade receivables of the Group considered past due but not impaired amounted to Rp3,005 billion and Rp3,354 billion, respectively. Management believes that receivables past due but not impaired, along with trade receivables that are neither past due nor impaired, are due from customers with good credit history and are expected to be recoverable.
c. By currency
(i) Related parties
|
|
|
2016 |
|
2017 |
|
Rupiah |
|
1,976 |
|
2,706 |
|
U.S. dollar |
|
0 |
|
41 |
|
Others |
|
0 |
|
0 |
|
Total |
|
1,976 |
|
2,747 |
|
Provision for impairment of receivables |
|
(488) |
|
(883) |
|
Net |
|
1,488 |
|
1,864 |
(ii) Third parties
|
|
|
2016 |
|
2017 |
|
Rupiah |
|
6,889 |
|
9,781 |
|
U.S. dollar |
|
1,437 |
|
968 |
|
Australian dollar |
|
40 |
|
19 |
|
Others |
|
11 |
|
38 |
|
Total |
|
8,377 |
|
10,806 |
|
Provision for impairment of receivables |
|
(2,502) |
|
(3,448) |
|
Net |
|
5,875 |
|
7,358 |
d. Movements in the provision for impairment of receivables
|
|
|
2016 |
|
2017 |
|
Beginning balance |
|
3,048 |
|
2,990 |
|
Provision recognized during the year (Note 27) |
|
743 |
|
1,494 |
|
Receivables written off |
|
(801) |
|
(153) |
|
Ending balance |
|
2,990 |
|
4,331 |
The receivables written off relate to both related party and third party trade receivables.
Management believes that the provision for impairment of trade receivables is adequate to cover losses on uncollectible trade receivables.
As of December 31, 2017, certain trade receivables of the subsidiaries amounting to Rp6,888 billion have been pledged as collateral under lending agreements (Notes 16 and 17c).
Refer to Note 31 for details of related party transactions.