Business Context and Reporting Period
This Form 6-K filing by Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk ("TELKOM") is dated December 30, 2003. The report addresses the status of the audit for the fiscal years 2000, 2001, and 2002, rather than providing new operational results for the period ending December 31, 2003.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the current or prior periods. The document focuses exclusively on the anticipated impact of audit adjustments on previously reported net income.
Material Changes and Audit Adjustments
TELKOM has reached an agreement in principle with its 2002 auditor, PricewaterhouseCoopers ("PwC"), regarding necessary adjustments to the 2002 financial statements. Discussions are also ongoing with Deloitte Touche Tohmatsu regarding adjustments for 2001 and 2000. While the exact amounts are not yet quantified, management expects the cumulative effect of these adjustments to decrease consolidated net income after tax by the following maximum percentages:
- 2002: Maximum decrease of 5%
- 2001: Maximum decrease of 10%
- 2000: Maximum decrease of 5%
The adjustments are expected to relate primarily to matters disclosed in press releases dated November 6, 2003, and December 11, 2003.
Outlook, Risks, and Contingencies
The audit of the 2002 financial statements is expected to be completed by the end of January 2004. However, the filing highlights significant risks:
- Quantification Uncertainty: Adjustments cannot be conclusively identified or quantified until the audit is complete; additional issues may arise.
- Listing Risk: TELKOM has not timely filed its Annual Report on Form 20-F. Consequently, there is no guarantee that its stock exchange listings on the NYSE and JSX will not be suspended.
- Forward-Looking Statements: Statements regarding audit progress and adjustment amounts involve risks and uncertainties, including potential further delays.
Investor Verification Checklist
- Verify the final completion date of the 2002 audit and the subsequent filing of the Form 20-F.
- Confirm the exact quantified impact of the audit adjustments on net income for 2000, 2001, and 2002 once the audit concludes.
- Monitor communications from the NYSE and JSX regarding the status of TELKOM's stock listings.
- Review the specific nature of the adjustments referenced in the November 6 and December 11, 2003 press releases.