Business Context and Reporting Period
This Form 6-K filing by Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TELKOM) covers the period ending June 9, 2010. TELKOM is Indonesia's principal fixed-line service provider and, through its majority-owned subsidiary Telkomsel, the largest mobile cellular operator in the country. The company lists its shares on the Indonesia Stock Exchange (IDX: TLKM) and its American Depository Shares on the NYSE (TLK) and LSE (TKIA).
Key Financial Metrics and Capital Structure
The filing details a specific capital raising event rather than reporting periodic financial performance metrics such as revenue, profit, or cash flow.
- Bond Issuance Amount: Maximum of Rp3,000,000,000,000 (Three trillion Rupiah).
- Credit Rating: idAAA (Stable Outlook) from PT Pemeringkat Efek Indonesia (PEFINDO).
- Debt Structure: Unsecured bonds with no specific collateral; guaranteed by all company assets under paripassu provisions.
- Series A: 5-year tenor, maturing in 2015, with quarterly interest payments.
- Series B: 10-year tenor, maturing in 2020, with quarterly interest payments.
The filing text does not provide clear values for revenue, net income, operating margins, or existing total debt levels.
Material Changes and Use of Proceeds
The primary material event is the public offering of "Telkom Bond II Year 2010." Proceeds from this issuance, net of costs, are designated to increase capital expenditure in the following areas:
- New Wave Broadband: Broadband, soft switch, datacom, and IT infrastructure.
- Infrastructure: Backbone, metro, Regional Metro Junction, IP, and satellite systems.
- Optimization: Legacy and supporting facilities for fixed wireline and wireless networks.
Outlook, Risks, and Unusual Items
Management Commentary and Timeline:
- Due Diligence/Expose: Held on June 7, 2010.
- Offering Dates: Planned for June 28–29, 2010.
- Allotment Date: June 30, 2010.
- Listing Date: July 5, 2010 on the Indonesian Stock Exchange.
Risks and Contingencies:
- The bonds are unsecured and not included in the Bank Indonesia guarantee program.
- Repayment relies on the company's general assets rather than specific collateral.
Underwriters and Trustee:
- Joint Lead Underwriters: PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas.
- Trustee: PT Bank CIMB Niaga Tbk.
Investor Verification Checklist
- Verify the final subscription rate and actual amount raised against the maximum Rp3 trillion target.
- Confirm the final interest rates (coupons) for Series A and Series B bonds.
- Review the company's most recent Form 20-F or annual report for baseline debt-to-equity ratios to assess the impact of this new issuance.
- Monitor the execution of the stated capital expenditure projects (New Wave Broadband and Infrastructure) in subsequent quarterly reports.