LONG-TERM BANK LOANS AND BORROWINGS | 21. LONG-TERM BANK LOANS AND BORROWINGS Long-term bank loans and borrowings consist of the following: Notes 2020 2021 Two-step loans 21a 384 217 Bonds and notes 21b 6,991 4,793 Bank loans 21c 20,581 29,745 Other borrowings 21d 2,605 1,564 Total 30,561 36,319 Scheduled principal payments as of December 31, 2021 are as follows: Year Notes Total 2023 2024 2025 2026 Thereafter Two-step loans 21a 217 122 95 — — — Bonds and notes 21b 4,793 — — 2,098 — 2,695 Bank loans 21c 29,745 8,842 6,572 5,356 4,358 4,617 Other borrowings 21d 1,564 1,052 512 — — — Total 36,319 10,016 7,179 7,454 4,358 7,312 a. Two-step loans 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. 2020 2021 Outstanding Outstanding Foreign currency Rupiah Foreign currency Rupiah Lenders Currency (in millions) equivalent (in millions) equivalent Overseas banks Yen 3,072 418 2,304 285 US$ 4 59 1 14 Rp — 91 56 Total 568 355 Current maturities (Note 20b) (184) (138) Long-term portion 384 217 Principal payment Interest payment Interest rate per Lenders Currency schedule period annum Overseas banks Yen Semi-annually Semi-annually 2.95 % US$ Semi-annually Semi-annually 3.85 % Rp Semi-annually Semi-annually 7.50 % 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: i. Projected net revenue to projected debt service ratio should exceed 1, 2 :1 for the two-step loans originating from Asian Development Bank (“ADB”). ii. I nternal financing (earnings before depreciation and finance costs) should exceed 20% compared to annual average capital expenditures for loans originating from the ADB. 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. (c) Debt service coverage is at least 125%. 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 date period per annum Security Series A Rp 262 September 4, 2018 September 14, 2019 Quarterly 7.25 % All assets Series B Rp 200 September 4, 2018 September 4, 2020 Quarterly 8.00 % All assets Series C Rp 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 date period payment Security Series A Rp 264 September 4, 2018 September 14, 2019 Quarterly 19 The Right to benefit of ijarah objects Series B Rp 296 September 4, 2018 September 4, 2020 Quarterly 24 The Right to benefit of ijarah objects Series C Rp 182 September 4, 2018 September 4, 2021 Quarterly 15 The Right to benefit of ijarah objects 742 58 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 payment payment Interest rate Borrower Currency (in billions)* (in billions)* schedule period per annum Security** BNI 2018 GSD Rp 182 28 2020 - 2024 Monthly 8.75% Trade receivables 2013 - 2021 The Company, GSD, TLT, Sigma, Mitratel, Telkomsel a Rp 12,902 2,834 2016 - 2033 Monthly, Quarterly 1 month JIBOR + 0.50% - 2.50%; Trade receivables, inventory, and property and equipment Bank Mandiri 2018 Balebat Rp 25 0 2018 - 2022 Monthly 9.00% Trade receivables, inventory, and property and equipment 2017- 2021 The Company, GSD, Mitratel, Rp 8,793 828 2019 - 2028 Quarterly 3 months JIBOR + Property and equipment Current Total period Principal Interest Interest facility payment payment payment rate per Borrower Currency (in billions)* (in billions)* schedule period annum Security** BRI 2017 - 2019 The Company, Mitratel, GSD Rp 3,253 600 2019 - 2026 Quarterly 3 months JIBOR + Property and equipment BSI 2019 - 2021 SSI, Telkomsel a Rp 560 160 2019 - 2024 Monthly 3.80% - 10.00% Property and equipment BCA 2017 - 2021 The Company, Mitratel, Telkom Infra, PST Rp 11,811 287 2018 - 2028 Quarterly, 3 months JIBOR + Trade receivables and property and equipment DBS 2017 - 2019 PINS, Mitratel, Telkomsat Rp 4,530 191 2018 - 2028 Quarterly, Semi-annually 3 months JIBOR + Property and equipment MUFG Bank 2016 - 2021 Mitratel, GSD Rp 3,600 593 2016 - 2028 Quarterly 3 months JIBOR + Property and equipment Bank Permata 2020 - 2021 Mitratel Rp 1,250 63 2021 - 2028 Semi-annually 3 months JIBOR + Property and equipment HSBC 2021 Mitratel Rp 750 - 2023 - 2028 Semi-annually 3 months Property and equipment Bank of China 2019 Telkomsel a Rp 1,000 1,000 2021 - 2023 Semi-annually 3 months None Syndication of banks 2015 - 2021 The Company, GSD Rp 8,000 500 2016 - 2028 Quarterly 3 months JIBOR + None 2018 Telin US$ 0.09 0.007 2019 - 2025 Semi-annually 6 months None UOB Singapore 2018 Telin US$ 0.049 0.009 2019 - 2024 Semi-annually 6 months None ANZ 2015 GSD, PINS Rp 440 88 2020 - 2025 Quarterly 3 months None Bank CIMB Niaga 2017 - 2019 GSD, PINS Rp 700 80 2018 - 2025 Quarterly 3 months JIBOR + None 2021 Telin US$ 0.055 - 2024 - 2029 Semi-annually 6 months None BTPN 2017 - 2020 GSD, Mitratel, Telin, Admedika Rp 489 78 2018 - 2025 Quarterly 3 months JIBOR + None ICBC 2017 GSD Rp 272 45 2017 - 2024 Quarterly 3 months Trade receivables and property and equipment * ** Refer to Notes 6, 8, and 13 for details of trade receivables, inventories, and property and equipment pledged as collaterals. a 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 Rp 1,000 220 Semi-annually (2019 - 2023) 3 months JIBOR + 1.75% None March 29, 2019 The Company Rp 2,836 700 Semi-annually (2020 - 2024) 3 months JIBOR + 1.75% None October 12, 2016 Mitratel Rp 700 100 Semi-annually (2018 - 2024) 3 months JIBOR + 1.85% Property and equipment March 29, 2019 Telkomsat Rp 164 24 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. |