9. LONG-TERM INVESTMENTS
The details of long-term investments as of December 31, 2016 are as follows:
|
|
|
2016 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Share of other |
|
|
|
|
|
Percentage of |
|
Beginning |
|
Additions |
|
Share of net |
|
|
|
comprehensive |
|
|
|
|
|
ownership |
|
balance |
|
(deductions) |
|
profit (loss) |
|
Dividend |
|
income |
|
Ending balance |
|
Long-term investments in associated companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tiphonea |
|
24.43 |
|
1,404 |
|
— |
|
108 |
|
(23) |
|
(1) |
|
1,488 |
|
Indonusab |
|
20.00 |
|
221 |
|
— |
|
— |
|
— |
|
— |
|
221 |
|
Teltranetc |
|
51.00 |
|
71 |
|
— |
|
(33) |
|
— |
|
— |
|
38 |
|
Melond |
|
51.00 |
|
50 |
|
(67) |
|
17 |
|
— |
|
— |
|
— |
|
PT Integrasi Logistic Cipta Solusi (“ILCS”)e |
|
49.00 |
|
40 |
|
— |
|
2 |
|
— |
|
— |
|
42 |
|
Othersf |
|
25.00-49.00 |
|
6 |
|
— |
|
(6) |
|
— |
|
— |
|
— |
|
Sub-total |
|
|
|
1,792 |
|
(67) |
|
88 |
|
(23) |
|
(1) |
|
1,789 |
|
Other long-term investments |
|
|
|
15 |
|
43 |
|
— |
|
— |
|
— |
|
58 |
|
Total long-term investments |
|
|
|
1,807 |
|
(24) |
|
88 |
|
(23) |
|
(1) |
|
1,847 |
Summarized financial information of the Group’s investments accounted for under the equity method for 2016*:
|
|
|
Tiphone |
|
Indonusa |
|
Teltranet |
|
ILCS |
|
Others |
|
Statements of financial position |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
7,709 |
|
170 |
|
66 |
|
131 |
|
170 |
|
Non-current assets |
|
743 |
|
444 |
|
88 |
|
29 |
|
771 |
|
Current liabilities |
|
(1,248) |
|
(532) |
|
(78) |
|
(73) |
|
(629) |
|
Non-current liabilities |
|
(3,762) |
|
(405) |
|
(2) |
|
(1) |
|
(1,212) |
|
Equity (deficit) |
|
3,442 |
|
(323) |
|
74 |
|
86 |
|
(900) |
|
Statements of profit or loss and other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
27,310 |
|
605 |
|
66 |
|
116 |
|
139 |
|
Operating expenses |
|
(26,445) |
|
(583) |
|
(149) |
|
(112) |
|
(264) |
|
Other income (expenses) - net |
|
(231) |
|
(17) |
|
(3) |
|
0 |
|
(88) |
|
Profit (loss) before tax |
|
634 |
|
5 |
|
(86) |
|
4 |
|
(213) |
|
Income tax benefit (expense) |
|
(166) |
|
(33) |
|
21 |
|
0 |
|
— |
|
Profit (loss) for the year |
|
468 |
|
(28) |
|
(65) |
|
4 |
|
(213) |
|
Other comprehensive income |
|
(5) |
|
7 |
|
0 |
|
(0) |
|
— |
|
Total comprehensive income for the year |
|
463 |
|
(21) |
|
(65) |
|
4 |
|
(213) |
The details of long-term investments as of December 31, 2017 are as follows:
|
|
|
2017 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Share of other |
|
|
|
|
|
Percentage of |
|
Beginning |
|
Additions |
|
Share of net |
|
|
|
comprehensive |
|
|
|
|
|
ownership |
|
balance |
|
(deductions) |
|
profit (loss) |
|
Dividend |
|
income |
|
Ending balance |
|
Long-term investments in associated companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tiphonea |
|
24.00 |
|
1,488 |
|
— |
|
80 |
|
(28) |
|
(1) |
|
1,539 |
|
Indonusab |
|
20.00 |
|
221 |
|
— |
|
— |
|
— |
|
— |
|
221 |
|
Teltranetc |
|
51.00 |
|
38 |
|
— |
|
(20) |
|
— |
|
— |
|
18 |
|
ILCSe |
|
49.00 |
|
42 |
|
— |
|
1 |
|
— |
|
— |
|
43 |
|
PT Graha Sakura Nusantara ("GSN")g |
|
45.00 |
|
— |
|
14 |
|
0 |
|
— |
|
— |
|
14 |
|
Othersf |
|
25.00 - 49.00 |
|
— |
|
4 |
|
(0) |
|
— |
|
(0) |
|
4 |
|
Sub-total |
|
|
|
1,789 |
|
18 |
|
61 |
|
(28) |
|
(1) |
|
1,839 |
|
Other long-term investments |
|
|
|
58 |
|
251 |
|
— |
|
— |
|
— |
|
309 |
|
Total long-term investments |
|
|
|
1,847 |
|
269 |
|
61 |
|
(28) |
|
(1) |
|
2,148 |
Summarized financial information of the Group’s investments accounted for under the equity method for 2017*:
|
|
|
Tiphone |
|
Indonusa |
|
Teltranet |
|
ILCS |
|
GSN |
|
Others |
|
Statements of financial position |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
8,084 |
|
307 |
|
174 |
|
145 |
|
1 |
|
190 |
|
Non-current assets |
|
994 |
|
415 |
|
101 |
|
32 |
|
185 |
|
606 |
|
Current liabilities |
|
(2,107) |
|
(877) |
|
(149) |
|
(87) |
|
(27) |
|
(724) |
|
Non-current liabilities |
|
(3,255) |
|
(177) |
|
(90) |
|
(2) |
|
(129) |
|
(1,882) |
|
Equity (deficit) |
|
3,716 |
|
(332) |
|
36 |
|
88 |
|
30 |
|
(1,810) |
|
Statements of profit or loss and other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
27,914 |
|
692 |
|
209 |
|
122 |
|
0 |
|
106 |
|
Operating expenses |
|
(27,217) |
|
(333) |
|
(255) |
|
(116) |
|
(0) |
|
(287) |
|
Other expenses - net |
|
(246) |
|
(364) |
|
(5) |
|
(4) |
|
— |
|
(19) |
|
Profit (loss) before tax |
|
451 |
|
(5) |
|
(51) |
|
2 |
|
0 |
|
(200) |
|
Income tax benefit (expense) |
|
(116) |
|
— |
|
13 |
|
1 |
|
— |
|
— |
|
Profit (loss) for the year |
|
335 |
|
(5) |
|
(38) |
|
3 |
|
0 |
|
(200) |
|
Other comprehensive income |
|
(3) |
|
— |
|
(0) |
|
(0) |
|
— |
|
— |
|
Total comprehensive income for the year |
|
332 |
|
(5) |
|
(38) |
|
3 |
|
0 |
|
(200) |
*The summarized financial information of associated companies above were prepared under Indonesian Financial Accounting Standards (IFAS). There is no material difference between IFAS and IFRS.
|
a |
Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as celullar phone including spare parts, accessories, pulse reload 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. |
As of December 31, 2016 and 2017, the fair value of the investment amounted to Rp1,500 billion and Rp1,755 billion, respectively. The fair value was calculated by multiplying the number of shares by the published price quotation as of December 31, 2016 and 2017 amounting to Rp855 and Rp1,000 per share, respectively.
Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of December 31, 2016 and 2017 is as follows:
|
|
|
2016 |
|
2017 |
|
Assets |
|
8,452 |
|
9,078 |
|
Liabilities |
|
(5,010) |
|
(5,362) |
|
Net assets |
|
3,442 |
|
3,716 |
|
Group’s proportionate share of net assets (24.43% in 2016 and 24.00% in 2017) |
|
841 |
|
892 |
|
Goodwill |
|
647 |
|
647 |
|
Carrying amount of long-term investment |
|
1,488 |
|
1,539 |
|
b |
Indonusa had been a subsidiary of the Company until 2013 when the Company disposed 80% of its interest 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%. |
|
c |
Investment in Teltranet is accounted for under the equity method, which covered by an agreement between Metra and Telstra Holding Singapore Pte. Ltd. dated August 29, 2014. Teltranet is engaged in communication system services. Metra does not have control to determine the financial and operating policies of Teltranet. |
|
d |
Melon previously was an associated company. In 2016, the Group purchased 49% shares in Melon through Metranet, therefore Melon became a consolidated subsidiary (Note 1d). |
|
e |
ILCS is engaged in providing E-trade logistic services and other related services. |
|
f |
The unrecognized share of losses in other investments for the year ended and cumulatively as of December 31, 2017 are Rp56 billion and Rp286 billion, respectively. |
|
g |
On August 31, 2017, NSI and third party established GSN which engaged in real estate, residential and apartment marketing business. |