PT. GARUDA INDONESIA (PERSERO) Tbk AND ITS SUBSIDIARIES

Transcription

PT. GARUDA INDONESIA (PERSERO) Tbk
AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2014 (UNAUDITED) AND DECEMBER 31, 2013, 2012
AND 2011 AND FOR THE NINE-MONTH PERIODS ENDED
SEPTEMBER 30, 2014 AND 2013 (UNAUDITED), AND THE YEARS
ENDED DECEMBER 31, 2013, 2012, AND 2011
AND INDEPENDENT AUDITORS’ REPORT
TABLE OF CONTENTS
Page
DIRECTORS’ STATEMENT LETTER
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION
1
INDEPENDENT AUDITORS’ REPORT
2
CONSOLIDATED FINANCIAL STATEMENTS – September 30, 2014 (Unaudited) and
December 31, 2013, 2012 and 2011 and for the nine-month periods ended
September 30, 2014 and 2013 (Unaudited) and the years ended December 31, 2013,
2012 and 2011
Consolidated Statements of Financial Position
6
Consolidated Statements of Comprehensive Income
8
Consolidated Statements of Changes in Equity
9
Consolidated Statements of Cash Flows
10
Notes to Consolidated Financial Statements
11
PT GARUDA INDONESIA (PERSERO) Tbk AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
SEPTEMBER 30, 2014 (UNAUDITED), DECEMBER 31, 2013, 2012 AND
JANUARY 1, 2012/DECEMBER 31, 2011
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
5,45
393,218,124
475,260,630
325,784,942
417,252,577
417,252,577
6,45
2,483,477
4,034,966
5,085,143
41,207,537
41,207,537
150,044,324
6,449,848
95,757,861
124,518,020
25,323,494
135,946,397
8,745,081
90,328,457
89,243,446
15,574,946
124,385,955
7,877,613
83,443,877
84,809,542
5,179,146
134,212,244
3,431,179
86,580,138
71,886,980
2,696,115
134,212,244
3,431,179
79,264,516
71,886,980
2,696,115
797,795,148
819,133,923
636,566,218
757,266,770
749,951,148
11,48,49
12
13
10
781,433,425
460,448,104
17,324,345
93,896,154
617,623,057
500,366,436
17,459,916
26,209,085
461,933,812
497,157,419
16,517,489
11,462,857
340,844,829
227,454,292
15,509,391
27,260,144
328,921,176
227,454,292
14,986,715
27,260,144
14
15
16
908,700,426
21,570,769
5,763,766
5,621,914
70,156,347
863,098,897
22,020,790
6,822,881
7,219,535
73,830,432
798,079,135
18,912,898
7,217,106
1,319,027
68,831,805
667,662,863
18,230,877
3,886,349
1,900,685
67,953,994
643,008,375
18,230,877
3,886,349
2,565,924
66,741,809
Total Non Current Assets
2,364,915,250
2,134,651,029
1,881,431,548
1,370,703,424
1,333,055,661
TOTAL ASSETS
3,162,710,398
2,953,784,952
2,517,997,766
2,127,970,194
2,083,006,809
Notes
January 1, 2012/December 31, 2011
Quasi-reorganization
After
Before
USD
USD
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade accounts receivables
Related parties
Third parties - net of allowance for
impairment loss of
USD 3,918,919 at September 30, 2014;
USD 2,968,386 at December 31, 2013;
USD 1,503,631 at December 31, 2012; and
USD 34,761,223 at January 1, 2012/
December 31, 2011
Other receivables
Inventories - net
Advances and prepaid expenses
Prepaid taxes
7
8
9
10
Total Current Assets
NON CURRENT ASSETS
Maintenance reserve fund and
security deposits
Advances for purchase of aircraft
Investments in associates
Deferred tax assets
Property and equipment - net of accumulated
depreciation of USD 1,116,606,454
at September 30, 2014, USD 1,026,833,500
at December 31, 2013, USD 948,246,186
at December 31, 2012 and USD 845,526,138
at January 1, 2012/December 31, 2011
Investment properties
Intangible assets - net
Deferred charges - net
Other assets - net
17,45
See accompanying notes to consolidated financial statements
which are an integral part of the consolidated financial statements.
-6-
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
SEPTEMBER 30, 2014 (UNAUDITED), DECEMBER 31, 2013, 2012 AND
JANUARY 1, 2012/DECEMBER 31, 2011 - Continued
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
18,45
44,990,280
45,222,668
5,651,251
639,391
639,391
19,45
156,146,777
101,979,600
25,563,648
17,876,380
158,352,071
198,740,983
24,336,974
122,293,726
83,892,550
16,271,886
17,037,776
160,967,081
169,265,396
20,534,373
83,773,489
89,696,142
16,669,543
20,407,652
169,268,165
162,270,578
20,417,066
52,124,703
63,036,417
26,550,366
12,630,711
159,392,656
158,862,887
8,753,128
52,124,703
63,036,417
26,550,366
12,630,711
159,392,656
158,862,887
8,753,128
255,646,282
12,985,825
280,075,641
53,268,680
106,125,048
58,132,590
80,354,353
54,552,395
80,354,353
54,552,395
Notes
Quasi-reorganization
After
Before
USD
USD
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Loan from banks and financial institution
Trade accounts payables
Related parties
Third parties
Other payables
Taxes payable
Accrued expenses
Unearned revenues
Advances received
Current maturities of
long term liabilities:
Long-term loans
Lease liabilities
Estimated liability for aircraft return
and maintenance cost
20
10
21
22
23,45
24
25
40,558,005
15,060,990
21,795,528
28,937,597
28,937,597
1,037,176,825
983,890,767
754,207,052
645,834,604
645,834,604
23,45
24
578,102,241
109,252,904
324,619,850
138,482,264
294,822,442
148,220,008
185,858,816
139,707,314
185,858,816
139,707,314
25
26
10
28
27
77,811,940
162,701,606
2,680,544
126,996,460
29,819,268
55,191,260
162,850,383
16,987,753
128,743,051
25,871,507
30,536,262
15,019,898
152,987,113
7,244,913
26,490,740
3,559,838
156,236,485
2,521,236
26,490,740
3,559,838
156,236,485
2,521,236
1,087,364,963
852,746,068
648,830,636
514,374,429
514,374,429
1,146,031,889
4,548,037
-
2,291,936,892
113,067,035
2,278,677
Total Current Liabilities
NON CURRENT LIABILITIES
Non current maturities of long-term
liabilities:
Long-term loans
Lease liabilities
Estimated liability for aircraft return
and maintenance cost
Bonds payable
Deferred tax liabilities
Employment benefits obligation
Other non current liabilities
Total Non Current Liabilities
EQUITY
Capital stock - Rp 459 par value per share
at September 30, 2014, December 31, 2013
and 2012, and Rp 500 par value per share at
for Series A Dwiwarna share and
Series B shares
Authorized - 1 of Series A Dwiwarna share
and 29,999,999,999 Series B shares
Issued and paid-up capital - 1 Series A
Dwiwarna shares, and Series B shares
of 25,868,926,632 at September 30, 2014
and 22,640,995,999 at December 31, 2013
and 2012 and January 1, 2012/
December 31, 2011
Additional paid-in capital
Stock option
Retained earnings
Deficit amounting to USD 1,385,459,977 as of
January 1, 2012 was eliminated in connection
with quasi reorganization (Note 53)
- Appropriated
- Unappropriated
Other comprehensive income
Equity attributable to owners of the company
Non controlling interest
29
30
32
1,309,433,569
(31,443,166)
2,770,970
1,146,031,889
4,548,037
2,770,970
1,146,031,889
4,548,037
1,148,451
33
6,081,861
(101,701,085)
(146,707,527)
1,038,434,622
(266,012)
5,529,919
118,391,074
(161,593,912)
1,115,677,977
1,470,140
110,598,370
(149,237,597)
1,113,089,150
1,870,928
(183,804,332)
966,775,594
985,567
Total Equity
1,038,168,610
1,117,148,117
1,114,960,078
967,761,161
922,797,776
TOTAL LIABILITIES AND EQUITY
3,162,710,398
2,953,784,952
2,517,997,766
2,127,970,194
2,083,006,809
14,31
34
-7-
(1,385,459,977)
(100,010,418)
921,812,209
985,567
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2013 (UNAUDITED)
AND THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011
2014
(Nine-month)
(Unaudited)
USD
2013
(Nine-month)
(Unaudited)
USD
2013
(One-year)
USD
2012
(One-year)
USD
2011
(One-year)
USD
35
35
35
2,474,170,236
107,124,044
220,388,827
2,801,683,107
2,355,313,097
89,990,378
241,685,332
2,686,988,807
3,170,086,191
215,965,887
330,024,508
3,716,076,586
2,887,250,744
269,091,577
316,126,641
3,472,468,962
2,580,538,964
246,459,221
269,330,220
3,096,328,405
36
37
38
39
40
41
1,878,566,285
261,834,536
260,356,466
226,435,710
208,032,268
167,625,319
25,387,975
13,653,241
12,103,810
3,053,995,610
1,599,921,320
219,711,746
242,359,857
218,752,567
197,747,055
163,527,944
25,803,340
15,136,184
13,996,608
2,696,956,621
2,244,840,144
288,213,715
335,842,135
283,500,861
266,998,356
218,772,364
33,758,910
19,816,371
18,007,374
3,709,750,230
1,908,975,113
288,853,664
317,443,935
263,949,418
240,479,502
213,737,827
25,809,070
18,290,868
16,883,310
3,294,422,707
1,750,918,352
248,166,721
265,239,707
261,326,123
222,389,175
198,258,565
6,957,658
16,282,577
13,579,030
2,983,117,908
Notes
OPERATING REVENUES
Scheduled airline services
Non-scheduled airline services
Others
Total Operating Revenues
OPERATING EXPENSES
Flight operations
Maintenance and overhaul
Ticketing, sales and promotion
Passenger services
User charges and station
General and administrative
Hotel operation
Transportation operation
Network operation
Total Operating Expenses
OTHER (INCOME) CHARGES
Loss (gain) on foreign exchange
Others
Net
42
INCOME (LOSS) FROM OPERATIONS
Equity in net income of associates
Finance income
Finance cost
13
43
INCOME (LOSS) BEFORE TAX
TAX BENEFITS (EXPENSE)
10
NET INCOME (LOSS) FOR THE PERIOD
OTHER COMPREHENSIVE INCOME
Unrealized loss on cash flows
hedge transaction
Gain on revaluation of property
and equipment - net
Exchange differences on translating
foreign operations
Related income tax
6,629,317
(8,592,754)
(1,963,437)
(37,638,451)
(1,743,150)
(39,381,601)
(47,928,641)
(2,193,278)
(50,121,919)
(250,349,066)
29,413,787
56,448,275
168,072,104
92,347,588
428,570
8,971,008
(57,837,321)
1,446,410
11,194,509
(44,305,558)
1,860,416
10,347,000
(59,840,088)
1,927,546
6,755,823
(25,224,919)
1,648,960
22,738,090
(19,801,370)
(298,786,809)
(2,250,852)
8,815,603
151,530,554
96,933,268
79,280,357
(12,483,053)
2,384,777
(40,687,981)
(32,707,732)
(219,506,452)
(14,733,905)
11,200,380
110,842,573
64,225,536
-
-
-
(101,281)
-
(9,449,819)
19,423,970
9,974,151
3,749,339
17,113,570
20,862,909
15,955,458
(2,283,780)
14,647,651
46,729,409
10,145,598
1,288,555
(4,026,264)
(16,097,081)
570,945
(26,863,018)
1,580,507
(3,845,700)
(8,316,974)
(1,167,245)
(503,273)
Total other comprehensive income (loss)
13,116,468
(17,809,916)
(10,634,860)
34,566,735
8,475,080
TOTAL COMPREHENSIVE INCOME (LOSS)
(206,389,984)
(32,543,821)
565,520
145,409,308
72,700,616
34
(219,540,217)
33,765
(219,506,452)
(15,014,775)
280,870
(14,733,905)
11,038,843
161,537
11,200,380
110,598,370
244,203
110,842,573
63,867,730
357,806
64,225,536
34
(204,653,832)
(1,736,152)
(206,389,984)
(32,581,804)
37,983
(32,543,821)
144,523,947
885,361
145,409,308
73,069,776
(369,160)
72,700,616
44
(0.00908)
(0.00066)
NET INCOME (LOSS) ATTRIBUTABLE TO:
Owners of the Company
NET INCOME (LOSS) FOR THE PERIOD
ATRIBUTABLE TO:
Owners of the Company
EARNING PER SHARE - BASIC
attributable to owner of the parent company
-8-
966,308
(400,788)
565,520
0.00049
0.00488
0.00282
CONSOLIDATED STATEMENTS OF CHANGE IN EQUITY
Notes
Balance as of January 1, 2012
prior to quasi-reorganization
Elimination of deficit in connection
with quasi-reorganization
53
after quasi-reorganization
Management and employee stock
option (MESOP)
Capital stock
USD
Stock option
USD
Retained Earning
Appropriated
Unappropriated
USD
USD
Revaluation
Surplus
USD
2,291,936,892
113,067,035
2,278,677
-
(1,385,459,977)
83,793,914
(1,145,905,003)
(108,518,998)
(2,278,677)
-
1,385,459,977
(83,793,914)
-
(183,804,332)
Non
controlling
interest
USD
Sub total
USD
Total equity
USD
-
(100,010,418)
921,812,209
985,567
922,797,776
-
(83,793,914)
44,963,385
-
44,963,385
-
(183,804,332)
966,775,594
985,567
967,761,161
4,548,037
-
-
-
-
1,148,451
-
-
-
-
-
1,148,451
-
1,148,451
-
-
-
-
110,598,370
38,412,435
(3,845,700)
-
34,566,735
145,165,105
885,361
146,050,466
1,146,031,889
4,548,037
1,148,451
-
110,598,370
38,412,435
(187,650,032)
-
(149,237,597)
1,113,089,150
1,870,928
1,114,960,078
-
-
-
-
-
1,622,519
-
1,622,519
-
-
-
-
-
-
-
-
-
(2,283,780)
-
-
32
-
(183,804,332)
Total other
comprehensive
income
USD
1,146,031,889
Total comprehensive income
Balance as of December 31, 2012
Additional
paid-up
capital
USD
Other component equity
Unrealized
loss on cash
Translation
flows hedge
transaction
adjustments
USD
USD
-
option (MESOP)
32
-
-
1,622,519
-
The Company's mandatory reserve
33
-
-
-
5,529,919
14,31
-
-
-
-
2,283,780
(2,283,780)
-
-
-
-
11,038,843
16,245,224
(26,317,758)
-
(10,072,535)
966,308
Balance as of December 31, 2013
1,146,031,889
4,548,037
2,770,970
5,529,919
118,391,074
52,373,879
(213,967,790)
-
(161,593,912)
1,115,677,977
1,470,140
1,117,148,116
1,146,031,889
4,548,037
1,148,451
-
110,598,370
38,412,435
(187,650,032)
-
(149,237,597)
1,113,089,150
1,870,928
1,114,960,078
-
-
-
-
-
1,359,039
-
1,359,039
-
-
-
-
-
-
-
-
-
(2,283,780)
-
-
Transferred to retained earning
(5,529,919)
(400,788)
565,520
option (MESOP)
32
-
-
1,359,039
-
33
-
-
-
5,529,919
Transferred to retained earning
-
-
-
-
2,283,780
(2,283,780)
-
-
-
-
(15,014,775)
(1,712,835)
(15,854,194)
-
(17,567,029)
Balance as of September 30, 2013
(Unaudited)
1,146,031,889
4,548,037
2,507,490
5,529,919
92,337,456
34,415,820
(203,504,226)
-
(169,088,406)
1,081,866,385
1,908,911
1,083,775,296
1,146,031,889
4,548,037
2,770,970
5,529,919
118,391,074
52,373,880
(213,967,790)
-
(161,593,912)
1,115,677,977
1,470,140
1,117,148,117
283,152
-
-
-
-
-
-
-
163,684,832
-
163,684,832
-
-
-
-
-
(33,197,028)
-
(33,197,028)
-
-
-
-
-
-
-
-
(3,077,327)
(101,281)
14,886,385
(204,653,832)
(101,281)
(146,707,527)
Issuance of new share through
Rights Issue
30
163,401,680
Exchange change rate differences on
Right Issue
30
-
33
-
Share issuance cost
30
-
Balance as of September 30, 2014
(Unaudited)
1,309,433,569
(33,197,028)
(3,077,327)
(31,443,166)
(5,529,919)
-
-
-
551,942
-
-
-
-
(219,540,217)
2,770,970
6,081,861
(101,701,085)
(551,942)
-
-9-
11,929,194
64,303,074
3,058,472
(210,909,318)
(32,581,804)
-
1,038,434,622
37,983
(1,736,152)
(266,012)
(32,543,821)
(3,077,327)
(206,389,984)
1,038,168,610
CONSOLIDATED STATEMENTS OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
Cash paid to suppliers
Cash paid to employees
Cash generated from (used in) operations
Interest and financial charges paid
Income taxes paid
Net Cash Provided from (Used in) from Operating
Activities
2014
(Nine-month)
(Unaudited)
USD
2013
(Nine-month)
(Unaudited)
USD
2013
(One-year)
USD
2012
(One-year)
USD
2011
(One-year)
USD
2,823,930,346
(2,592,623,259)
(328,729,750)
(97,422,663)
(47,608,467)
(16,834,443)
2,695,558,533
(2,442,114,754)
(14,764,034)
238,679,745
(48,890,952)
(24,441,614)
3,828,013,062
(3,204,353,979)
(425,242,885)
198,416,198
(35,040,542)
(24,349,733)
3,303,464,135
(2,520,504,898)
(390,157,600)
392,801,637
(13,655,445)
(14,460,638)
2,796,651,611
(2,125,758,229)
(398,700,186)
272,193,196
(13,405,715)
(14,521,529)
(161,865,573)
165,347,179
139,025,923
364,685,554
244,265,952
208,639,112
26,924,745
14,793,995
11,286,737
3,384,141
434,257
(216,349,395)
(154,948,840)
(42,932,861)
222,589,999
21,895,683
1,069,293
6,989,927
915,484
780,880
(173,083,778)
(334,420,463)
(39,954,498)
398,739,049
41,931,995
1,101,734
9,892,089
10,314,619
1,739,459
(324,902)
(235,312,053)
(442,858,026)
(54,121,268)
73,495,873
17,143,158
3,974,307
7,003,496
3,893,794
1,897,701
327,042
(180,440,276)
(373,812,834)
(29,335,992)
13,618,068
17,823,908
6,956,927
19,547,233
27,098,561
1,478,011
1,395,933
402,193
(135,674,590)
(126,434,521)
(43,856,509)
(14,173,356)
(2,844,540)
(30,822,815)
(10,038,832)
(98,848)
(56,359,662)
1,589,293
(38,937,015)
(13,669,300)
(40,059)
(55,864,432)
(1,710,965)
(43,814,936)
(14,259,993)
-
(3,096,135)
(933,748)
(18,183,897)
(27,265,181)
-
(2,207,332)
(1,079,357)
(31,658,102)
(9,216,334)
-
Net Cash Used in Investing Activities
(206,746,500)
(400,634,215)
(384,547,630)
(525,332,694)
(261,805,912)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds of long-term loan
Proceeds of bonds - net
Proceeds of bank loans and financial institution
Proceeds from intial public offering of shares - net
Proceeds from issuance of common stock - net
Payments of long-term loan
Payments of bank loans and financial institution
Payments for aircraft return and maintenance
Receipts (payments) for other financing activities
478,945,938
123,924,347
127,410,477
(334,808,796)
(121,871,470)
(2,882,789)
376,239
341,316,157
200,259,361
135,240,515
(255,273,154)
(101,098,604)
(2,661,688)
-
431,112,338
200,259,361
181,946,307
(228,479,260)
(142,398,200)
(6,677,864)
(1,776,784)
206,260,009
39,759,949
(124,540,535)
(37,336,500)
(6,559,941)
(1,191,279)
88,626,720
21,177,510
351,880,484
(95,327,587)
(54,111,386)
(18,491,510)
-
Net Cash Provided from Financing Activities
271,093,946
317,782,586
433,985,899
76,391,704
293,754,232
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
(97,518,127)
82,495,550
188,464,192
(84,255,436)
276,214,273
CASH AND CASH EQUIVALENTS AT BEGINNING
OF THE PERIOD
475,260,630
325,784,942
325,784,942
417,252,577
130,951,315
15,475,621
(35,687,746)
(38,988,504)
393,218,124
372,592,746
475,260,630
CASH FLOWS FROM INVESTING ACTIVITIES
Refund of advance payments for purchase of aircraft
Receipts of aircraft maintenance reimbursements
Receipts of security deposit
Interest received
Proceeds from sale of property and equipment
Proceeds from sale of investment property
Dividend received
Increased (decreased) in other investment
Payments for aircraft maintenance reserve fund
Advance payments for aircrafts
Acquisition of property and equipment
Payments for aircraft maintenance and aircraft
leased asset
Increase (decrease) in restricted cash
Payments for security deposit
Advance payments for property & equipment
Other payment from investment activity
Effect of foreign exchange rate changes
CASH AND CASH EQUIVALENTS AT END
OF THE PERIOD
- 10 -
(7,212,199)
325,784,942
10,086,989
417,252,577
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2013 (UNAUDITED), AND THE YEARS
ENDED DECEMBER 31, 2013, 2012 AND JANUARY 1, 2012/DECEMBER 31, 2011
1. GENERAL
a. Establishment and General Information
PT Garuda Indonesia (Persero) Tbk (“the Company”) was established based on Notarial Deed No. 137
dated March 31, 1950 of Raden Kadiman. The deed was approved by the Minister of Law of the
Republic of Indonesia in his Decision Letter No. J.A.5/12/10 dated March 31, 1950 and published in the
State Gazette of the Republic of Indonesia No. 30 dated May 12, 1950, Supplement No. 136. The
Company was previously a State Company, based on Deed No. 8 dated March 4, 1975 of Notary
Soeleman Ardjasasmita, S.H., and has changed into a state-owned limited liability company pursuant to
Government Regulation No. 67 in 1971. This change was published in the State Gazette of the
Republic of Indonesia No. 68 dated August 26, 1975, supplement No. 434.
The Company’s Articles of Association has been amended several times, most recently by Deed No. 5
dated June 30, 2014 of Aulia Taufani, S.H, notary in Tangerang, concerning with the amendment of
Article 4, paragraph 2 and article 4 paragraph 3 of the Articles of Association of the Company's issued
and paid-up capital changes with respect to the Company's limited public offering I Company. The
amendment deed was approved by the Ministry of Justice and Human Rights of the Republic of
Indonesia in its Decision Letter No. AHU-03736.40.21.2014 dated July 1, 2014.
The Company’s head office is located at Jl. Kebon Sirih No. 44, Jakarta.
In accordance with article 3 of the Company's Articles of Association, the scope of its activities
comprises of the following:
1. Undertaking scheduled commercial air transportation of domestic or international passengers,
cargoes and mails;
2. Undertaking non-scheduled commercial air transportation of domestic or international passengers,
cargoes and mails;
3. Providing aircraft repair and maintenance, to satisfy own needs and the needs of third party;
4. Rendering support services for commercial air transportation operation, such as catering services
and ground handling services, to satisfy own needs and the needs of third party;
5. Providing information systems services relating to aviation industry, to satisfy own needs and the
needs of third party;
6. Providing consulting services relating to aviation industry;
7. Providing education and training services relating to aviation industry, to satisfy own needs and the
needs of third party;
8. Providing health care services for aircrew to satisfy own needs and the needs of third party.
The Company currently operates all its scope of activities except for providing consulting services
relating to aviation industry.
The Company started commercial operations in 1950. The Company and subsidiaries (the “Group”)
total employees as of September 30, 2014, December 31, 2013 and 2012 and 2011 were 15,288,
14,592, 13,314 and 13,072, respectively.
Starting in 2012, the Company maintained its accounting records in English language and in United
States Dollar (USD) which have been approved by the Directorate General of Tax No. KEP289/WPJ.19/2012.
- 11 -
ENDED DECEMBER 31, 2013, 2012 AND JANUARY 1, 2012/DECEMBER 31, 2011 - Continued
b. Board of Commissioners and Directors
The Company's management at September 30, 2014 as stated in Deed No. 3 dated April 28, 2014 of
Aulia Taufani, S.H., notary in Serpong-Tangerang District, at December 31, 2013 as stated in Deed
No. 129 dated April 26, 2013 of Aryanti Artisari, S.H., M.Kn., notary in Jakarta, at December 31, 2012
as stated in Deed No. 2 dated June 28, 2012 of Aulia Taufani, S.H., notary in Serpong-Tangerang
District, and at December 31, 2011 as stated in Deed No. 393 dated April 29, 2011 of Sutjipto, S.H.,
M.Kn., notary in Jakarta, are as follows:
President Commissioner
Commissioners
Independent Commissioners
President & CEO
EVP Finance
EVP M arketing & Sales
EVP M aintenance &
Fleet M anagement
EVP Services
EVP Operations
EVP Strategy, Business
Development & Risk
M anagement
EVP Human Capital &
Corporate Affairs
c.
January 1, 2012/
December 31, 2011
September 30, 2014
December 31, 2013
December 31, 2012
Bambang Susantono
Isa Rachmatarwata
Wendy Aritenang Yazid
Peter F. Gontha
Betti S. Alisjahbana
Chris Kanter
Emirsyah Satar
Handrito Hardjono
M eijer Frederik Johannes
Bambang Susantono
Bagus Rumbogo
Peter F. Gontha
Chris Kanter
Emirsyah Satar
Handrito Hardjono
M eijer Frederik Johannes
Bambang Susantono
Bambang Wahyudi
Sonatha Halim Jusuf
Peter F. Gontha
Emirsyah Satar
Handrito Hardjono
Elisa Lumbantoruan
Hadiyanto
Sahala Lumban Gaol
Adi Rahman Adiwoso
Abdulgani
Batara Silaban
Faik Fahmi
Novijanto Herupratomo
Batara Silaban
Faik Fahmi
Batara Silaban
Faik Fahmi
Hadinoto Soedigno
Agus Priyanto
Capt. Ari Sapari
Judi Rifajantoro
Judi Rifajantoro
Judi Rifajantoro
Achirina
Heriyanto Agung Putra
-
Emirsyah Satar
Elisa Lumbantoruan
-
Audit Committee, Corporate Secretary and Internal Audit
The Company’s Audit Committee, Corporate Secretary and Internal Audit as of September 30, 2014,
December 31, 2013, 2012 and 2011 are the following:
September 30,
2014
Audit Committee
Chairman
Vice Chairman
M embers
Corporate Secretary
Internal Audit
December 31,
2013
December 31,
2012
January 1, 2012/
December 31, 2011
Regina Arsjad Jansen
Prasetyo Suhardi
Chaerul D Djakman
Prasetyo Suhardi
Chaerul D Djakman
Lily Sihombing
Ike Andriani
Sri M ulyati
Ike Andriani
Sri M ulyati
Ike Andriani
Sri M ulyati
Abdulgani
Adi Rahman Adiwoso
Adi Dharmanto
Endang M udiman
Ike Andriani
Sri M ulyati
d. Public Offering of Share of the Group
1. On February 1, 2011, the Company obtained the Notice of Effectivity from the Capital Market and
Financial Institutions Supervisory Board (BAPEPAM-LK) in its Letter No. S-325 /BL/2011 for the
offering to the public of 6,335,738,000 shares. On February 11, 2011, all of these shares are listed
on the Indonesia Stock Exchange.
2. On March 21, 2014, the Company obtained the Notice of Effectivity from Financial Service
Authority/Otoritas Jasa Keuangan (also known as OJK) (formerly BAPEPAM-LK) in its Letter No. S171/D.04/2014 regarding the limited public offering of the Company’s 3,227,930,663 shares to the
shareholder through Rights Issue. Each holder of 701,409 old shares whose names are recorded in
the Company’s register of shareholder on April 4, 2014 at 04:00 PM is entitled to 100,000 rights
with exercise price of Rp 460 per share. On April 8, 2014, all additional shares have been listed on
the Indonesia Stock Exchange.
- 12 -
As of September 30, 2014, all of the Company’s outstanding share or 25,868,926,633 shares have
been listed on the Indonesia Stock Exchange.
e. Consolidated Subsidiaries
The Company has ownership interest of more than 50%, directly or indirectly, in the following
subsidiaries:
Tot al asset s bef ore eliminat ion
St art of
Subsidiary
Domicile
Main business
Percent age
commercial
2014
December 31,
December 31,
January 1, 2012/
act ivit ies
of ownership
operat ions
(Unaudit ed)
2013
2012
December 31, 2011
USD
USD
USD
USD
%
PT Abacus Dist ribut ion Syst ems
Jakart a
Indonesia (ADSI) **)
Sept ember 30,
Comput erize
95.00
1996
6,282,634
5,565,956
6,228,900
5,447,132
99.99
2002
244,172,941
207,854,836
179,673,245
151,409,684
99.99
2005
29,066,227
21,414,854
29,638,625
24,884,051
99.99
2012
157,610,877
106,054,602
73,144,319
22,154,930
100.00
2014
43,531,346
-
-
-
99.99
1973
205,739,465
201,872,697
reservat ion
syst em services
provider
PT Garuda Maint enance Facilit y
Jakart a
Aero Asia (GMFAA) **)
Aircraf t
maint enance and
overhaul
PT Aero Syst ems Indonesia (ASI) **)
Jakart a
Inf ormat ion t echnology
services
PT Cit ilink Indonesia (CT)**)
Jakart a
Air t ransport at ion
services
Garuda Indonesia Holiday France S.A.S (GIHF)**)
Paris
Travel agent , t icket ing service,
aircraf t rent al service
PT Aero Wisat a and subsidiaries (AWS)
Jakart a
Hot el, cat ering,
208,183,724
198,406,635
t icket ing services
PT Mirt asari Hot el Development (MHD)*)
PT Aerof ood Indonesia (ACS) *)
Denpasar
Hot el
99.99
1974
22,886,818
23,728,302
24,873,148
24,067,041
Jakart a
Aircraf t cat ering
99.99
1974
89,218,153
85,322,228
81,107,028
70,993,156
services
PT Aero Globe Indonesia (AGI) *)
Jakart a
Travel agent
99.99
1967
6,676,719
6,234,920
6,074,522
5,321,971
PT Aerot rans Services Indonesia (ATS) *)
Jakart a
Transport at ion
99.99
1989
23,688,660
23,566,931
24,028,648
24,740,227
PT Aerojasa Perkasa (AJP) *)
Jakart a
Ticket ing
99.87
1989
2,503,860
2,593,986
2,057,862
2,258,554
PT Senggigi Prat ama Int ernasional
Lombok
Hot el
99.99
1988
9,628,778
9,617,591
11,339,060
12,153,089
Sydney
Travel agent
99.99
1981
5,675,037
5,776,356
7,320,389
8,888,558
Korea
Travel agent
60.00
2008
563,568
809,865
817,289
786,545
Japan
Travel agent
60.00
2009
4,926,903
6,157,663
7,387,490
4,900,974
services
(SPI) *)
Garuda Orient Holidays, Pt y,
Limit ed (GOHA) *)
Garuda Orient Holidays Korea Co,
Limit ed (GOHK) *)
Garuda Orient Holidays Japan Co,
Lt d (GOHJ) *)
PT Bina Int i Dinamika (BID) *)
Bandung
Hot el
61.89
1989
4,416,719
4,567,831
5,376,083
5,166,595
PT Aero Hot el Management (AHM) *)
Jakart a
Hot el management
99.99
2010
863,623
689,108
741,640
878,423
PT GIH Indonesia *)
Jakart a
Travel agent
60.00
2012
2,508,006
1,484,367
563,541
-
PT Belit ung Int ipermai (BIP) *)
Jakart a
Hot el
99.99
Under
2,121,823
2,125,849
2,319,217
2,209,240
development
*) Indirect ownership
st age
**) Direct and Indirect ownership
2. ADOPTION OF NEW AND REVISED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS
(PSAK) AND INTERPRETATIONS OF PSAK (ISAK)
a. Standards effective in the current period
In the current period, the Group adopted the following new and revised standards and interpretations
issued by the Financial Accounting Standard Board of the Indonesian Institute of Accountants that are
relevant to its operations and effective for accounting period beginning on January 1, 2014.


ISAK 27 Transfer of Assets from Customers
ISAK 28 Extinguishing Financial Liabilities with Equity Instruments
The adoption of the above interpretation does not have an impact on the group financial statements but
may impact future transactions or arrangements.
- 13 -
b. Standards and interpretation in issue not yet adopted
Effective for periods beginning on or after January 1, 2015:













PSAK 1 (revised 2013), Presentation of Financial Statements
PSAK 4 (revised 2013), Separate Financial Statement
PSAK 15 (revised 2013), Investments in Associates and Joint Ventures
PSAK 24 (revised 2013), Employee Benefits
PSAK 48 (revised 2014), Impairment of Asset
PSAK 50 (revised 2014), Financial Instrument: Presentation
PSAK 55 (revised 2014), Financial Instrument: Recognition and Measurement
PSAK 60 (revised 2014), Financial Instrument: Disclosure
ISAK 26 (revised 2014), Reassessment of embedded Derivatives
PSAK 65, Consolidated Financial Statements
PSAK 66, Joint Arrangements
PSAK 67, Disclosure of Interest in Other Entities
PSAK 68, Fair Value Measurements
As of the issuance date of the consolidated financial statements, the effect of adoption of the above
standards is still being evaluated by management.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Statement of Compliance
The consolidated financial statements have been prepared in accordance with Indonesian Financial
Accounting Standards. These financial statements are not intended to present the financial position,
results of operations and cash flows in accordance with accounting principles and reporting practices
generally accepted in other countries and jurisdictions.
b. Basis of Preparation
The consolidated financial statements, except for the consolidated statements of cash flows, are
prepared under the accrual basis of accounting. The presentation currency used in the preparation of
the consolidated financial statements is the United States Dollar (USD), while the measurement basis is
the historical cost, except for certain accounts which are measured on the bases described in the
related accounting policies.
The consolidated statements of cash flows are prepared using the direct method with classification of
cash flows into operating, investing and financing activities.
c.
Interim Consolidated Financial Reporting
PSAK 3 (Revised 2010) prescribes, among other things, the minimum content and the period for which
interim financial statements are required to be presented, as well as the recognition and measurement
principles in complete or condensed interim financial statements are required to be presented.
In preparing the interim consolidated financial statements for the periods ended September 30, 2014
and 2013, the Group follows the same accounting principles that have been applied in the preparation
of the annual consolidated financial statements for the year ended December 31, 2013, 2012 and 2011,
and presented the prescribed periods for which interim consolidated financial statements are required
to be presented.
- 14 -
d. Principles of Consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to
govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Income and expenses of subsidiaries acquired or disposed of during the year are included in the
consolidated statements of comprehensive income from the effective date of acquisition and up to the
effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of the subsidiaries to bring the
accounting policies used in line with those used by the Group.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Non-controlling interests in subsidiaries are identified separately and presented within equity. The
interest of non-controlling shareholders maybe initially measured either at fair value or at the noncontrolling interests’ proportionate share of the recognised amounts of the fair value of the acquiree’s
identifiable net asset. The choice of measurement is made on acquisition by acquisition basis.
Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those
interests at initial recognition plus non-controlling interests’ share of subsequent changes in equity.
Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the noncontrolling interests even if this results in the non-controlling interests having deficit balance.
Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for
as equity transactions. The carrying amounts of the Group interests and the non-controlling interests
are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between
the amount by which the non-controlling interests are adjusted and the fair value of the consideration
paid or received is recognised directly in equity and attributed to owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is
calculated as the difference between (i) the aggregate of the fair value of the consideration received
and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including
goodwill), and liabilities of the subsidiary and any non-controlling interest. When assets of the subsidiary
are carried at revalued amount or fair values and the related cumulative gain or loss has been
recognised in other comprehensive income and accumulated in equity, the amounts previously
recognised in other comprehensive income and accumulated in equity are accounted for as if the Group
had directly disposed of the relevant assets (i.e. reclassified to profit or loss or transferred directly to
retained earnings as specified by applicable accounting standards). The fair value of any investment
retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial
recognition for subsequent accounting under PSAK 55 (revised 2011), Financial Instruments:
Recognition and Measurement or, when applicable, the cost on initial recognition of an investment in an
associate or a jointly controlled entity.
e. Business Combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is measured at fair value, which is calculated as the sum of the
acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to
the former owners of the acquiree, and the equity interests issued by the Group in exchange for control
of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at
their fair value except for certain assets and liabilities that are measured in accordance with the relevant
standards.
- 15 -
Non-controlling interests are measured either at fair value or at the non-controlling interests’
proportionate share of the acquiree’s identifiable net assets.
When the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at its
acquisition-date fair value and included as part of the consideration transferred in a business
combination. Changes in the fair value of the contingent consideration that qualify as measurement
period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill.
Measurement period adjustments are adjustments that arise from additional information obtained during
the measurement period (which cannot exceed one year from the acquisition date) about facts and
circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not
qualify as measurement period adjustments depends on how the contingent consideration is classified.
Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates
and its subsequent settlement is accounted for within equity. Contingent consideration that is classified
as an asset or liability is remeasured subsequent to reporting dates in accordance with the relevant
accounting standards, as appropriate, with the corresponding gain or loss being recognised in profit or
loss or in other comprehensive income.
When a business combination is achieved in stages, the Group’s previously held equity interest in the
acquiree is remeasured to fair value at the acquisition date and the resulting gain or loss, if any, is
recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date
that have previously been recognised in other comprehensive income are reclassified to profit or loss
where such treatment would be appropriate if that interests were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in
which the combination occurs, the Group reports provisional amounts for the items for which the
accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or
additional assets or liabilities are recognised, to reflect new information obtained about facts and
circumstances that existed as of the acquisition date that, if known, would have affected the amount
recognised as of that date.
f.
Foreign Currency Transactions and Translations
The books of accounts of each entity in the Group, except AWS and its subsidiaries are maintained in
U.S. Dollar (USD), the currency of the primary economic environment in which the entity operates (its
functional currency). Transactions during the period involving non-functional currencies are recorded at
the rates of exchange prevailing at the time the transactions are made. At reporting date, monetary
assets and liabilities denominated in non-functional currency are adjusted to reflect the rates of
exchange prevailing at that date. The resulting gains or losses are credited or charged to profit and
loss.
The books of accounts of AWS and its subsidiaries except GOHA, GOHK and GOHJ are maintained in
Rupiah, while those of GOHA, GOHK and GOHJ are maintained in Australian Dollars, Korean Won and
Japan Yen, respectively. For consolidation purposes, assets and liabilities of these subsidiaries at
reporting date are translated into USD using the exchange rates at reporting date, while revenues and
expenses are translated using the average rates of exchange for the year. Resulting translation
adjustments are shown as part of other comprehensive income.
- 16 -
The main exchange rates used, based on the mid rates published by Bank Indonesia are as follows (in
full USD):
September 30,
2014
USD
Currencies
IDR 1
EURO 1
YEN 100
SGD 1
AUD 1
GBP 1
December 31,
2013
USD
0.0001
1.2688
0.9147
0.7849
0.8725
1.6243
December 31,
2012
USD
0.0001
1.3801
0.9531
0.7899
0.8923
1.6488
0.0001
1.3247
1.1579
0.8177
1.0368
1.6111
January 1, 2012/
December 31, 2011
USD
0.0001
1.2946
1.2881
0.7691
1.0149
1.5405
g. Transactions with Related Parties
The Group enters into transactions with related parties as defined in PSAK No. 7 “Related Party
Disclosures”. All transactions with related parties, whether or not made at similar terms and conditions
as those done with third parties, are disclosed in the consolidated financial statements.
h. Cash and Cash Equivalents
For cash flows presentation purposes, cash and cash equivalents comprise of cash on hand, cash in
bank and all unrestricted investments with maturities of three months or less from the date of
placement.
i.
Financial Assets
All financial assets are recognised and derecognised on trade date where the purchase or sale of a
financial asset is under a contract whose terms require delivery of the financial asset within the
timeframe established by the market concerned, and are initially measured at fair value plus transaction
costs, except for those financial assets classified as at fair value through profit or loss, which are initially
measured at fair value.
The Group financial assets are classified as follows:

Fair value through profit or loss (FVTPL)
Financial derivatives are classified in this category unless designated as hedging derivatives. Gain
or loss on non-hedging derivative is recognised in profit or loss.
Fair value is determined in the manner described in Note 46.

Available for sale (AFS)
Long-term investments in shares, except investments in associates, are classified in this category.
As there is no active market for these investments and the fair value cannot be reliably measured,
these investments are measured at cost, less impairment.
Dividends on AFS equity instruments, if any, are recognised in profit or loss when the Group’s right
to receive the dividends is established.
- 17 -

Loans and receivables
Cash and cash equivalents, maintenance reserve funds and security deposits on operating leases,
trade and other receivables that have fixed or determinable payments that are not quoted in active
market, are classified as “loans and receivables”. Loans and receivables are measured at amortized
cost using the effective interest method, less impairment.
Interest is recognised by applying the effective interest method, except for short term receivable
where the recognition or interest would be immaterial.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial instrument and
of allocating interest income over the relevant period.
The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments
(including all fees and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the financial instrument,
or, where appropriate, a shorter period to the net carrying amount on initial recognition.
Income is recognised on an effective interest basis for financial instruments other than those financial
instruments assessed as at fair value through profit or loss.
Impairment of financial assets
Financial assets, other than those at fair value through profit and loss (FVTPL), are assessed for
indicators of impairment at each reporting date. Financial assets are impaired where there is objective
evidence that, as a result of one or more events that occurred after the initial recognition of the financial
asset, the estimated future cash flows of the investment have been affected.
For listed and unlisted equity investments classified as AFS, a significant or prolonged decline in the
value of the security below its cost is considered to be objective evidence of impairment.
For all other financial assets, objective evidence of impairment could include:
 significant financial difficulty of the issuer or counterparty; or
 default or delinquency in interest or principal payments; or
 it becoming probable that the borrower will enter bankruptcy or financial re-organisation.
For certain categories of financial asset, such as receivables, assets that are assessed not to be
impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence
of impairment for a portfolio of receivables could include the Group’s past experiences of collecting
payments, an increase in the number of delayed payments in the portfolio past the average credit
period, as well as observable changes in national or local economic conditions that correlate with
default on receivables.
For financial assets carried at amortized cost, the amount of the impairment is the difference between
the asset’s carrying amount and the present value of estimated future cash flows, discounted at the
financial assets original effective interest rate.
For financial asset carried at cost, the amount of the impairment loss is measured as the difference
between the asset’s carrying amount and the present value of the estimated future.
When an AFS financial asset is considered to be impaired, cumulative gains or losses previously
recognised in equity are reclassified to profit or loss. Impairment losses previously recognised in profit
and loss are not reversed through profit or loss. Any increase in fair value subsequent to an impairment
loss is recognised directly in other comprehensive income.
- 18 -
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from the
asset expires, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the
risks and rewards of ownership and continues to control the transferred asset, the Group recognises its
retained interest in the asset and an associated liability for amounts it may have to pay. If the Group
retains, substantially all the risks and rewards of ownership of a transferred financial asset, the Group
continues to recognise the financial asset and also recognises a collateralised borrowing for the
proceeds received.
Netting of Financial Assets and Financial Liabilities
The Group only offsets financial assets and liabilities and presents the net amount in the statement of
financial position where it:


j.
currently has a legal enforceable right to set off the recognised amount; and
intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial Liabilities and Equity Instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Group are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability and an
equity instrument.
Equity instruments
An equity instruments is any contract that evidences a residual interest in the assets of the Group after
deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct
issue costs.
Financial liabilities
Bank loans and liabilities from financial institution, long-term loans, bonds payable and trade and other
payables are initially measured at fair value, net of transaction costs, and are subsequently measured
at amortized cost, using the effective interest rate method, with interest expense recognised on an
effective yield basis.
Derecognition of financial liabilities
The Group derecognised financial liabilities when, and only when, their obligations are discharged,
cancelled or expires. The difference between the carrying amount of the financial liability derecognised
and the consideration paid and payable is recognised in profit or loss.
k.
Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the
weighted average method. Net realizable value is the estimated selling price in the ordinary course of
business less all estimated costs of completion and costs necessary to make the sale.
l.
Prepaid Expenses
Prepaid expenses are amortized over their beneficial periods using the straight-line method.
- 19 -
m. Investments in Associates
An associate is an entity over which the Group has significant influence and that is neither a subsidiary
nor an interest in a joint venture. Significant influence is the power to participate in the financial and
operating policy decisions of the investee but is not control or joint control over those policies.
The results of operations and assets and liabilities of associates are incorporated in these consolidated
financial statements using the equity method of accounting, except when the investment is classified as
held for sale, in which case, it is accounted for in accordance with PSAK 58 (Revised 2009), Noncurrent Assets Held for Sale and Discontinued Operations. Under the equity method, an investment in
an associate is initially recognised in the consolidated statement of financial position at cost and
adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income
of the associate. When the Group’s share of losses of an associate exceeds the Group’s interest in that
associate (which includes any long-term interests that, in substance, form part of the Group’s net
investment in the associate) the Group discontinues recognizing its share of further losses. Additional
losses are recognised only to the extent that the Group has incurred legal or constructive obligations or
made payments on behalf of the associate.
Any excess of the cost of acquisition over the Groups’ share of the net fair value of identifiable assets,
liabilities and contingent liabilities of the associate recognised at the date of acquisition, is recognised
as goodwill, which is included within the carrying amount of the investment. Any excess of the Groups’
share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of
acquisition, after reassessment, are recognised immediately in profit or loss.
The requirements of PSAK 55 (revised 2011), Financial Instruments: Recognition and Measurement
are applied to determine whether it is necessary to recognize any impairment loss with respect to the
Group’s investment in an associate. When necessary, the entire carrying amount of the investment
(including goodwill) is tested for impairment in accordance with PSAK 48 (Revised 2009), Impairment of
Assets, as a single asset by comparing its recoverable amount (higher of value in use and fair value
less costs to sell) with its carrying amount. Any impairment loss recognised forms part of the carrying
amount of the investment. Any reversal of that impairment loss is recognised in accordance with PSAK
48 to the extent that the recoverable amount of the investment subsequently increases.
Upon disposal of an associate that results in the Group losing significant influence over that associate,
any retained investment is measured at fair value at that date and the fair value is regarded as its fair
value on initial recognition as a financial asset in accordance with PSAK 55. The difference between the
previous carrying amount of the associate attributable to the retained interest and the fair value is
included in the determination of the gain or loss on disposal of the associate. In addition, the Group
accounts for all amounts previously recognised in other comprehensive income in relation to that
associate on the same basis as would be required if that associate had directly disposed of the related
assets or liabilities. Therefore, if a gain or loss previously recognised in other comprehensive income by
that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities,
the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment)
when it loses significant influence over that associate.
When a group entity transacts with its associate, profits and losses resulting from the transaction with
the associate are recognised in the Group’s consolidated financial statements only to the extent of its
interest in the associate that are not related to the Group.
n. Investment Properties
Investment properties are properties (land or a building – or part of a building – or both) held to earn
rentals or for capital appreciation or both.
Investment properties are recorded initially at cost. Subsequent to initial recognition, investment
properties are measured at fair value. Gains and losses arising from changes in fair value are
recognised in profit or loss in the period in which they arise.
- 20 -
Investment properties shall be derecognised upon disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal. Any
gain or loss arising on derecognition of the property (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in
which the property is derecognised.
o. Property and Equipment
Aircraft, land and buildings are stated at their revalued amounts, being the fair value at the date of
revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment
losses. Revaluation is made with sufficient regularity to ensure that the carrying amount does not differ
materially from that which would be determined using fair value at the reporting date.
Any revaluation increase arising on the revaluation of such aircraft, land and buildings is recognised in
other comprehensive income and accumulated in equity under the heading of revaluation surplus,
except to the extent that it reverses a revaluation decrease, for the same asset which was previously
recognised in profit or loss, in which case the increase is credited to profit and loss to the extent of the
decrease previously charged. A decrease in carrying amount arising on the revaluation of such aircraft,
land and buildings is charged to profit or loss to the extent that it exceeds the balance, if any, held in the
properties revaluation reserve relating to a previous revaluation of such aircraft, land and buildings.
The revaluation surplus in respect of aircrafts, land and buildings is directly transferred to retained
earnings when the asset is derecognised.
Aircraft assets are depreciated using the straight-line method to an estimated residual value based on
their estimated useful lives, as follows:
Airframe
Engine
Simulator
Rotable parts
Maintenance assets
Airframe inspection
Machine
Engine overhaul
overhaul
September 30,
2014
December 31,
2013
December 31,
2012
January 1, 2012/
December 31, 2011
18 - 22
18 - 22
10
12
18 - 22
18 - 22
10
12
18 - 20
18 - 20
10
12
18 - 20
18 - 20
10
12
Next inspection period
Next overhaul period
The Company changed the estimated useful life of Airbus 330-300 aircraft in 2014 and Boeing 747-400
aircraft in 2013 from 20 to 22 years. Such change in estimate was accounted prospectively resulting to
reduction in depreciation expense by USD 10,942,071 in 2014 and USD 3,214,148 in 2013.
Non aircraft assets except land and buildings, are stated at cost less accumulated depreciation and
impairment, if any, and are depreciated using the straight-line method based on the estimated useful
lives of the asset, as follows:
Years
Buildings and infrastructure
Vehicles
Other fixed assets (office equipment, hardware and installation)
40
3-5
2 - 10
Land is not depreciated.
Assets held under finance lease are depreciated based on the same estimated useful life with owned
assets or over the lease period whichever is shorter.
- 21 -
The estimated useful lives, residual values and depreciation method are reviewed at least each year
end and the effect of any changes in estimate is accounted for on a prospective basis.
The cost of maintenance and repairs is charged to operations as incurred. Other costs incurred
subsequently to add to, replace part of, or service an item of property, and equipment, are recognised
as asset if, and only if it is probable that future economic benefits associated with the item will flow to
the entity and the cost of the item can be measured reliably. When assets are retired or otherwise
disposed of, their carrying amount is removed from the consolidated financial statements and the
resulting gains or losses are recognised in profit or loss.
Construction in progress is stated at cost which includes borrowing costs during construction on debts
incurred to finance the construction. Construction in progress is transferred to the respective property
and equipment account when complete and ready to use.
For borrowings that are not specific to the acquisition of a qualifying asset, the amount capitalized is
determined by applying a capitalization rate to the expenditures on qualifying asset. The capitalization
rate is the weighted average of the borrowing costs applicable to the total borrowings outstanding
during the period, excluding borrowings directly attributable to financing other qualifying assets.
Properties under BOT (build, operate and transfer) are stated at cost, less accumulated depreciation.
Depreciation is computed using the straight-line method over 20 - 30 years.
p. Non Current Assets Held For Sale
Noncurrent assets and disposal groups are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than through continuing use. This condition is
regarded as met only when the sale is highly probable and the noncurrent asset (or disposal group) is
available for immediate sale in its present condition. Management must be committed to the sale, which
should be expected to qualify for recognition as a completed sale within one year from the date of
classification.
Non current assets (and disposal groups) classified as held for sale are measured at the lower of their
previous carrying amount and fair value less costs to sell.
q. Impairment of Non-Financial Asset
At reporting dates, the Group reviews the carrying amount of non-financial assets to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss
(if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group
estimates the recoverable amount of the cash generating unit to which the asset belongs.
Estimated recoverable amount is the higher of fair value less cost to sell or value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable
amount of a non-financial asset (cash generating unit) is less than its carrying amount, the carrying
amount of the asset (cash generating unit) is reduced to its recoverable amount and an impairment loss
is recognised immediately against earnings unless the relevant asset is carried at revaluation amount,
in which the impairment loss is treated as revaluation decrease.
Accounting policy for impairment of financial assets is disclosed in Note 3i.
r.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee. All other leases, which do not meet these criterias, are
classified as operating leases.
- 22 -
As Lessee
Assets held under finance leases are initially recognised as assets of the Group at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The
corresponding liability to the lessor is included in the consolidated statement of financial position as a
finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the lease obligation so as
to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are
charged directly to profit or loss. Contingent rentals are recognised as expenses in the periods in which
they are incurred.
Operating lease payments are recognised as an expense on a straight-line basis over the lease term,
except where another systematic basis is more representative of the time pattern in which economic
benefits from the leased asset are consumed. Contingent rentals arising under operating leases are
recognised as an expense in the period in which they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are
recognised as a liability. The aggregate amount of incentives is recognised as a reduction of rental
expense on a straight-line basis, except where another systematic basis is more representative of the
time pattern in which economic benefits from the leased asset are consumed.
Sale and Leaseback
Assets sold under a sale and leaseback transaction are accounted for as follows:

If the sale and leaseback transaction results in a finance lease, any excess of sales proceeds over
the carrying amount of the asset is deferred and amortized over the lease term.

If the sale and leaseback transaction results in an operating lease and the transaction are
established at fair value, any profit or loss is recognised immediately. If the sale price is below fair
value, any profit or loss is recognised immediately except that, if the loss is compensated by future
lease payments at below market price, it is deferred and amortized in proportion to the lease
payments over the period for which the asset is expected to be used. If the sale price is above fair
value, the excess over fair value is deferred and amortized over the period for which the asset is
expected to be used.
For operating leases, if the fair value at the time of a sale and leaseback transaction is less than the
carrying amount of the asset, a loss equal to the amount of the difference between the carrying amount
and fair value is recognised immediately.
For finance leases, no such adjustment is necessary unless there has been impairment in value, in
which case the carrying amount is reduced to recoverable amount.
s.
Heavy Maintenance Costs of Aircraft
Major airframe inspection cost relating to heavy maintenance visit and engine overhauls for owned
aircraft and those held on finance lease is capitalized and amortized over the period until the next
expected major inspection or overhaul.
If there is a commitment related to maintenance of aircraft held under operating lease arrangements, a
provision is made during the lease term for the lease return obligations specified within those lease
agreements. The provision is made based on historical experience, manufacturers’ advice and if
relevant, contractual obligations, to determine the present value of the estimated future major airframe
inspections cost and engine overhauls.
All other repair and maintenance costs are expensed as incurred.
- 23 -
t.
Deferred Charges
Other charges that meet the asset recognition criteria are deferred and amortized using the straight-line
method over their beneficial periods.
u. Revenue and Expense Recognition
Passenger ticket and cargo waybill sales are initially recorded as unearned transportation revenue.
Revenue is recognised when transportation service is rendered. Revenue also includes recoveries from
surcharges during the period.
Revenue from short-term aircraft maintenance and overhaul contract is recognised when the service is
rendered. Revenue from long-term aircraft maintenance and overhaul contracts is recognised using the
percentage-of-completion method.
Revenues from hotels, catering, travel agency services, reservation system services and other services
related to flight operations are recognised when the services are rendered.
Interest revenue is accrued on time basis, by reference to the principal outstanding and at the
applicable interest rate.
Dividend income from investment in shares is recognised when the shareholders’ rights to receive such
dividend have been established.
Expenses are recognised when incurred.
v.
Frequent Flyer Program
The Company operates a frequent flyer program called “Garuda Miles” that provides travel awards to its
members based on accumulated mileage. A portion of passenger revenue attributable to the award of
frequent flyer benefits, estimated based on expected utilization of these benefits, is deferred until they
are utilized. These deferments of revenue are recorded as unearned revenue. Any remaining unutilized
benefits are recognised as revenue upon expiry.
w. Post-Employment Benefits and Long-Term Benefits
Post-Employment Benefits
Post-employment benefits are determined using the Projected Unit Credit Method. The accumulated
unrecognised actuarial gains and losses that exceed 10% of the greater of the present value of the
defined benefit obligations and the fair value of plan assets, is recognised on straight-line basis over the
expected average remaining service years of the participating employees. Past service cost is
recognised immediately to the extent that the benefits are already vested, and otherwise is amortized
on a straight-line basis over the average period until the benefits become vested.
The employee benefits obligation recognised in the consolidated statements of financial position
represents the present value of the defined benefit obligation as adjusted for unrecognised actuarial
gains and losses, and unrecognised past service cost, and reduced by the fair value of plan assets.
Long-Term Benefits
Long-term benefits are determined using the Projected Unit Credit Method. Past service cost and
actuarial gains (losses) are recognised immediately in the current operations.
The long-term employee benefit obligation recognised in the consolidated statement of financial
position represents the present value of the defined benefit obligation.
- 24 -
x.
Provision
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of
a past event, it is probable that the Group will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding
the obligation. Where a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement
will be received and the amount of the receivable can be measured reliably.
y.
Income Tax
Current tax expense is determined based on the taxable income for the year computed using the
prevailing tax rates.
Deferred tax assets and liabilities are recognised for the future tax consequences attributable to
differences between the financial statement carrying amounts of assets and liabilities and their
respective tax bases. Deferred tax liabilities are recognised for all taxable temporary differences and
deferred tax assets are recognised for deductible temporary differences to the extent that it is probable
that taxable income will be available in future periods against which the deductible temporary
differences and fiscal losses can be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realized, based on the tax rates (and tax laws) that have
been enacted, or substantively enacted, by the end of the reporting period.
The measurement of deferred tax assets and liabilities reflects the consequences that would follow from
the manner in which the Group expects, at the end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.
The carrying amount of deferred tax asset is reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or
part of the asset to be recovered.
Deferred tax assets and liabilities are offset when there is legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Group intends to settle their current tax assets and current tax liabilities on a net
basis.
Current and deferred tax are recognised as an expense or income in profit or loss, except when they
relate to items that are recognised outside of profit or loss (whether in other comprehensive income or
directly in equity), in which case the tax is also recognised outside of profit or loss.
z.
Derivative Financial Instruments
Derivatives are initially recognised at fair value at the date the derivative contract is entered into and are
subsequently measured to their fair value at each reporting date. The accounting for subsequent
changes in fair value depends on whether the derivative is designated as a hedging instrument, and if
so, the nature of the item being hedged.
- 25 -
Changes in fair value of derivative financial instruments that are designated as effective hedges of
future cash flows are recognised as part of other comprehensive income and the ineffective portion is
recognised immediately in earnings. If the hedged transaction results in the recognition of an asset or
liability, the accumulated gains and losses under other comprehensive income are reclassified into
earnings in the same period in which the related asset or liability affects earnings. For hedges that do
not result in the recognition of an asset or liability, amounts deferred in other comprehensive income
are recognised in earnings in the same period in which the hedged item affects profit or loss.
For an effective hedge of an exposure to changes in the fair value, the hedged item is adjusted for
changes in fair value attributable to the risk being hedged and such changes are recognised
immediately in earnings.
aa. Earnings per Share
Basic earning per share is computed by dividing net income attributable to owners of the Company by
the weighted average number of shares outstanding during the period.
Diluted earnings per share is computed by dividing net income attributable to owners of the Company
by the weighted average number of shares outstanding as adjusted for the effects of all dilutive
potential ordinary shares.
bb. Operating Segment
Operating segments are identified on the basis of internal reports about components of the Group that
are regularly reviewed by the chief operating decision maker in order to allocate resources to the
segments and to assess their performances.
An operating segment is a component of an entity:
a)
that engages in business activities from which it may earn revenue and incur expenses (including
revenue and expenses relating to the transaction with other components of the same entity);
b)
whose operating results are reviewed regularly by the entity’s chief operating decision maker to
make decision about resources to be allocated to the segments and assess its performance; and
c)
for which discrete financial information is available.
Information reported to the chief operating decision maker for the purpose of resource allocation and
assessment of their performance is more specifically focused on the category of each product.
cc. Intangible Assets
Software and licenses are capitalized on the basis of the cost incurred to acquire and to prepare the
assets for intended use. These costs are amortized using the straight-line method over the estimated
useful life of 3 – 8 years.
dd. Manufacturer’s Incentive
The Company receives credits from vendors in connection with the acquisition of certain avionic
equipments. Depending on their nature, these credits are recorded as a reduction to the cost of the
related avionic equipments. The credits are either settled as cash back on subsequent purchases or
net-off with payable to vendors.
ee. Management and Employee Stock Option Program
The Company provides stock option program to its members of management and eligible employees
(MESOP). The program consists of stock option plan that upon exercise is settled through issuance of
shares (equity-settled share based payment arrangement) which is accounted as equity transaction.
- 26 -
Equity-settled share-based payments to employees and others providing similar services are measured
at the fair value of the equity instruments at the grant date. The fair value determined at the grant date
of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period,
based on the Company’s estimate of equity instruments that will eventually vest, with a corresponding
increase in equity. At the end of each reporting period, the Company revises its estimate of the number
of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is
recognised in consolidated statements of comprehensive income such that the cumulative expense
reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits
reserve.
ff. Quasi-Reorganization
As of January 1, 2012, the Company carried out a quasi-reorganization in accordance with the
Statement of Financial Accounting Standards (PSAK) No. 51 (revised 2003), “Accounting for QuasiReorganization”.
The quasi-reorganization was carried out using the accounting reorganization method, wherein assets
and liabilities are revalued at their fair values using market value and discounted cash flows model. The
revaluation surplus of asset and liabilities is recognised as difference in revaluation of assets and
liabilities and used for eliminating deficit. Details of the elimination of deficit are discussed in Note 53. In
addition, the fair value of those assets and liabilities as used in the quasi-reorganization becomes their
initial carrying amount in the consolidated financial statements commencing January 1, 2012 and are
subsequently measured using the relevant accounting policies.
4. CRITICAL ACCOUNTING JUDGMENTS AND ESTIMATES
Critical Judgments and Applying Accounting Policies
The following are the critical judgments, apart from those involving estimation (see below) that management
has made in the process of applying the accounting policies and that have the most significant impact on
the amounts recognised in the consolidated financial statements:
i.
Operating Lease Commitments – As Lessee
The Company has entered into commercial leases on its aircraft. The Company has determined, based
on an evaluation of the substance of terms and conditions of the arrangements, that the lessor retains
all the significant risks and rewards of ownership of these aircrafts and so accounts for the contracts as
operating leases. The operating lease commitments are disclosed in Note 48.
ii.
Sale and Leaseback
The Company has entered into sale and leaseback of certain newly acquired aircrafts. The Company
has determined, based on an evaluation of the substance of the terms and conditions of the
arrangements, that sale and leaseback transaction results in an operating lease, and the transaction is
established at fair value. Sale and leaseback transactions are disclosed in Note 48.
Key Sources of Estimation Uncertainty
The preparation of consolidated financial statements in accordance with Indonesian Financial Accounting
Standards requires management to make estimates and assumptions that has an effect to the carrying
amount of assets and liabilities and disclosure of contingent and liabilities at the date of consolidated
financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could be different from those estimates.
The key assumptions concerning future and other key sources of estimation at the end of the reporting
period, that have the significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
- 27 -
i.
Estimated Useful Lives of Property and Equipment
Management has estimated the useful lives of property and equipment based on expected asset
utilization based on business plans and strategies that also consider expected future technological
developments and market behavior. The estimation of the useful lives of property and equipment is
based on the Group’s collective assessment of industry practice, internal technical evaluation and
experience with similar assets. The estimated useful lives are reviewed at least each financial periodend and are updated if expectations differ from previous estimates due to physical wear and tear,
technical or commercial obsolescence and legal or other limitations on the use of the assets. It is
possible, however, that future results of operations could be materially affected by changes in the
estimates brought about by changes in the factors mentioned above.
The carrying amount of property and equipment is disclosed in Note 14.
ii.
Provision For Aircraft Return and Maintenance Cost
Whenever there is a commitment to maintain aircraft held under operating lease arrangements, a
provision is made during the lease term for the lease return obligations specified within those lease
agreements. The provision is based upon historical experience, manufacturers' advice and, where
appropriate, contractual obligations in determining the present value of the estimated future costs of
major airframe inspections and engine overhauls. Estimates are required to be made in respect of the
timing of maintenance. The carrying amount of estimated liability is disclosed in Note 25.
iii. Post-Employment Benefits Obligation
The cost of defined benefit plan and present value of the pension obligation are determined based on
actuarial valuation which makes use of various assumptions such as discount rates, expected rates of
return on plan assets, rates of compensation increases and mortality rates. The defined benefit
obligation is highly sensitive to changes in the assumptions. The carrying amount of the obligation is
disclosed in Note 28.
iv. Income Tax
In certain circumstances, the Group may not be able to determine the exact amount of its current or
future tax liabilities due to ongoing investigations by, or negotiations with, the taxation authority.
Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and
timing of future taxable income. In determining the amount to be recognised in respect of an uncertain
tax liability, the Group applies similar considerations as it would use in determining the amount of a
provision to be recognised in accordance with PSAK 57, “Provisions, Contingent Liabilities and
Contingent Asset. Income tax is disclosed in Note 10c.
v.
Impairment Loss on Loans and Receivables
The Group assesses its loans and receivables for impairment at each reporting date. In determining
whether an impairment loss should be recorded in profit or loss, management makes judgment as to
whether there is objective evidence that loss event has occurred. Management also makes judgment as
to the methodology and assumptions for estimating the amount and timing of future cash flows which
are reviewed regularly to reduce any difference between loss estimate and actual loss. The carrying
amount of loans and receivables are disclosed in Notes 6 and 7.
vi. Allowance for Decline in Value of Inventories
The Group provides allowance for decline in value of inventories based on estimated future usage of
such inventories. While it is believed that the assumptions used in the estimation of the allowance for
decline in value of inventories are appropriate and reasonable, significant changes in these
assumptions may materially affect the assessment of the allowance for decline in value of inventories,
which ultimately will impact the result of the Groups’ operations. The carrying amount of inventories is
disclosed in Note 8.
- 28 -
5. CASH AND CASH EQUIVALENTS
September 30,
2014
(Unaudited)
USD
Cash o n hand
Rupiah
U.S. Do llar
Other fo reign currencies
To tal Cash o n hand
B anks
Related parties (No te 45)
B ank M andiri
B ank Negara Indo nesia
B ank Rakyat Indo nesia
Third parties
Citibank N.A .
B ank o f China
B ank Central A sia
Standard Chartered B ank
Co mmo nwealth B ank o f A ustralia
Saudi A rabian B ank
B ank Internasio nal Indo nesia
Natio nal A ustralian B ank
Industrial Co mmercial B ank o f China
Califo rnia B ank
B ank P ermata
M izuho B ank
The B ank o f To kyo -M itsubishi UFJ
United Overseas B ank
B ank M uamalat
A B N A mro
B anca di Ro ma
CIM B Niaga
B angko k B ank Limited
B ank M ega
B ank o f New Zealand
Ko o kmin B ank Ko rea
B ank DKI
Ko rean Exchange B ank
Westpac B ank New Zealand
Llyo ds B ank Ltd
Other banks
(each belo w USD 300,000)
To tal bank
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
1,709,638
716,064
2,539,703
4,965,405
1,225,762
604,239
299,599
2,129,600
1,520,553
782,993
327,039
2,630,585
1,215,460
691,676
442,342
2,349,478
1,215,460
691,676
442,342
2,349,478
57,348,487
35,173,529
1,883,167
37,336,951
50,236,939
20,265,546
56,299,467
48,328,934
591,024
10,675,333
28,721,054
352,488
10,675,333
28,721,054
352,488
88,918,725
11,459,037
10,755,320
10,209,522
5,847,343
4,326,837
3,309,882
2,984,120
2,725,372
2,553,351
2,425,192
2,289,973
2,132,599
1,706,301
1,564,847
1,167,253
875,670
666,811
608,564
497,314
432,570
403,962
401,229
375,990
314,778
305,957
81,045,523
7,236,135
2,438,407
9,705,890
11,106,813
2,453,385
93,082
728,974
3,414,822
1,418,562
566,309
1,227,895
2,548,135
277,345
1,152,822
92,066
952,916
292,268
214,030
327,808
393,353
273,859
4,210,023
84,980
2,942,564
110,837,674
4,858,298
3,269,558
1,908,893
8,559,451
1,820,696
110,338
1,977,850
878,558
2,494,161
2,648,768
1,746,946
3,162,125
143,742
351,891
77,367
915,235
2,618,884
205,464
12,679
361,021
671,542
2,898,684
93,647
1,012,035
77,201,301
4,722,946
1,218,632
5,386,041
1,635,801
22,331
540,375
403,635
2,362,172
1,468,974
164,526
223,109
329,532
128,404
143,067
1,594,406
143,067
1,080,597
77,201,301
4,722,946
1,218,632
5,386,041
1,635,801
22,331
540,375
403,635
2,362,172
1,468,974
164,526
223,109
329,532
128,404
143,067
1,594,406
143,067
1,080,597
1,188,503
254,852,205
1,689,822
244,727,225
30,391
258,885,324
2,531,211
141,049,002
2,531,211
141,049,002
Time depo sits
B ank Syariah M andiri
B ank Rakyat Indo nesia Syariah
B ank M andiri
Third parties
B ank M uamalat
B ank P ermata
B ank B uko pin
B ank M ega
B ank A rtha Graha
B ank CIM B Niaga
B ank M ega Syariah
Citibank N.A .
B ank DKI
B ank Jatim
B ank Himpunan Saudara
Natio nal A ustralian B ank
B ank Nagari
To tal time depo sits
54,026,133
14,051,689
-
33,913,915
5,579,582
8,204,118
6,563,295
-
14,361,489
4,472,251
-
134,728,165
18,469,252
67,269,519
134,728,165
18,469,252
67,269,519
49,704,880
10,000,000
1,962,722
1,603,949
1,009,672
409,433
361,643
245,660
24,733
133,400,514
86,388,793
66,714,415
666,175
19,256,002
506,174
246,124
365,212
228,403,805
33,609,100
1,282,187
1,240,951
242,622
8,368,769
433,133
103,412
155,119
64,269,033
15,297,750
5,999,945
419,056
138,227
25,634,318
276,788
275,695
463,167
4,771,937
110,278
273,854,097
15,297,750
5,999,945
419,056
138,227
25,634,318
276,788
275,695
463,167
4,771,937
110,278
273,854,097
To tal
393,218,124
475,260,630
325,784,942
417,252,577
417,252,577
4,30% - 7,25%
0,020% - 3,00%
2,00% - 2,25%
4,30% - 7,25%
0,020% - 3,00%
2,00% - 2,25%
Interest rate per annum o n time depo sit
Rupiah
U.S. Do llar
A ustralian Do llar
7,25% - 10,75%
1,75% - 3,35%
-
5,00% - 11,00%
0,10% - 3,75%
- 29 -
3,80% - 8,00%
0,25% - 3,35%
-
-
Cash and cash equivalents by currency:
September 30,
2014
(Unaudited)
USD
Rupiah
U.S. Do llar
Chinese Renmimbi
Japanese Yen
A ustralian Do llar
Euro
Saudi A rabian Riyal
Singapo re Do llar
Great B ritain P o undsterling
Ho ngko ng Do llar
Ko rean Wo n
Thailand B aht
United A rab Emirates Dirham
Taiwan Do llar
Other currencies (each under USD 300,000)
To tal
December 31,
2013
USD
162,092,005
142,814,399
27,995,843
19,130,536
11,180,211
9,307,126
4,648,133
4,690,193
4,022,190
1,464,170
1,169,302
903,303
811,872
463,610
2,525,231
393,218,124
265,099,069
130,010,406
21,088,383
12,644,695
18,827,232
7,085,143
2,507,521
3,068,188
2,469,824
2,616,116
4,841,640
1,663,453
466,000
461,976
2,410,984
475,260,630
December 31,
2012
USD
74,446,068
190,235,436
14,552,907
13,593,379
13,678,402
4,652,488
1,921,528
2,064,078
1,026,833
1,461,584
3,851,437
1,458,975
510,192
329,620
2,002,015
325,784,942
January 1,
2012
USD
264,254,558
105,858,945
10,740,274
6,905,340
15,098,014
1,659,762
1,649,474
930,961
1,085,056
441,435
2,791,110
1,533,061
1,815,187
167,436
2,321,964
417,252,577
December 31,
2011
USD
264,254,558
105,858,945
10,740,274
6,905,340
15,098,014
1,659,762
1,649,474
930,961
1,085,056
441,435
2,791,110
1,533,061
1,815,187
167,436
2,321,964
417,252,577
6. TRADE ACCOUNTS RECEIVABLES
a. By Debtors
September 30,
2014
(Unaudited)
USD
P T P o s Indo nesia
A bacus Internatio nal Ltd
P T Jiwasraya
P T Gapura A ngkasa
P T B ukit A sam (P ersero ) Tbk
M inistry o f Religio us A ffairs
P T B ank Negara Indo nesia
Others
To tal
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
855,119
655,571
424,166
348,832
109,519
16,906
73,364
2,483,477
532,813
410,871
1,966,795
920,503
113,915
26,672
63,397
4,034,966
843,371
478,751
2,479,139
934,252
198,306
102,417
48,907
5,085,143
595,477
386,565
4,802,176
767,763
1,531,509
32,734,421
342,375
47,251
41,207,537
595,477
386,565
4,802,176
767,763
1,531,509
32,734,421
342,375
47,251
41,207,537
65,945,380
14,792,621
7,764,829
1,005,869
8,567,980
98,076,679
55,886,564
153,963,243
59,210,984
15,051,367
3,494,044
1,819,882
3,605,040
83,181,317
55,733,466
138,914,783
54,550,046
14,588,829
5,732,009
1,626,701
4,731,557
81,229,142
44,660,444
125,889,586
66,838,084
14,914,574
5,410,823
1,164,529
995,461
89,323,471
44,888,773
134,212,244
73,796,666
16,823,938
5,727,082
1,501,314
4,092,142
101,941,142
67,032,325
168,973,467
A llo wance fo r impairment lo ss
To tal
(3,918,919)
150,044,324
(2,968,386)
135,946,397
(1,503,631)
124,385,955
134,212,244
(34,761,223)
134,212,244
To tal Trade A cco unts Receivable
152,527,801
139,981,363
129,471,098
175,419,781
175,419,781
Third parties
A irlines services
P assenger agents
Cargo agents
Credit cards
A irlines
Others
Sub to tal
No n airlines services
To tal
- 30 -
b. By Currency
September 30,
2014
(Unaudited)
USD
Rupiah
U.S. Do llar
Japanese Yen
A ustralian Do llar
Euro
Ko rean wo n
Singapo re Do llar
Saudi A rabian Riyal
Chinese Renmimbi
M alaysian Ringgit
Other currencies
To tal
A llo wance fo r impairment lo ss
To tal - net
c.
December 31,
2013
USD
70,981,880
47,250,433
8,628,853
7,021,775
3,903,554
3,685,378
2,377,948
1,871,767
1,605,527
1,249,287
7,870,318
156,446,720
(3,918,919)
152,527,801
December 31,
2012
USD
54,672,498
53,552,044
8,816,761
4,062,138
4,157,581
2,673,552
759,599
1,749,217
2,037,590
1,303,554
9,165,215
142,949,749
(2,968,386)
139,981,363
79,688,200
20,804,844
11,064,385
3,081,409
2,476,335
4,385,212
193,838
622,233
1,343,965
1,303,023
6,011,285
130,974,729
(1,503,631)
129,471,098
January 1,
2012
USD
December 31,
2011
USD
50,357,868
90,248,174
10,040,195
5,656,990
3,965,848
2,081,091
530,988
844,095
206,173
285,888
11,202,471
175,419,781
175,419,781
60,336,794
108,131,772
12,029,762
6,777,980
4,751,721
2,493,480
636,209
1,458,915
356,345
494,122
12,713,904
210,181,004
(34,761,223)
175,419,781
Aging of Trade Accounts Receivables Not Impaired
September 30,
2014
(Unaudited)
USD
No t yet due
P ast due
1- 60 days
61- 180 days
181- 360 days
> 360 days
To tal
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
43,179,800
21,070,158
17,398,954
65,424,518
65,424,518
87,937,088
10,965,469
6,940,068
3,505,376
152,527,801
104,171,808
5,849,245
3,885,956
5,004,196
139,981,363
90,708,666
7,222,480
6,143,162
7,997,836
129,471,098
76,723,004
9,018,159
4,723,633
19,530,467
175,419,781
76,723,004
9,018,159
4,723,633
19,530,467
175,419,781
The average credit term is 30 - 60 days for the nine-month period ended September 30, 2014 and for years
ended December 31, 2013, 2012 and 2011. No interest is charged on overdue trade accounts receivables.
Changes in the allowance for impairment loss:
September 30,
2014
(Unaudited)
USD
B eginning balance
A dditio n
Reco very
Write o ff & fo reign currency changes
Eliminatio n o f deficit in relatio n with Quasi
Reo rganizatio n
Ending balance
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
2,968,386
1,111,839
(161,306)
-
1,503,631
1,777,925
(313,170)
-
1,503,631
-
34,761,223
-
35,052,831
2,376,728
(427,287)
(2,241,049)
3,918,919
2,968,386
1,503,631
(34,761,223)
-
34,761,223
The age of impaired trade accounts receivables is above 360 days.
In relation with quasi-reorganization, the Group revalued the trade accounts receivable as of January 1,
2012.
Allowance for impairment losses from individual and collective impairment are as follows:
September 30,
2014
(Unaudited)
USD
Individual assessments
Co llective assessments
To tal
December 31,
2013
USD
641,150
470,689
1,111,839
348,023
1,429,902
1,777,925
- 31 -
December 31,
2012
USD
810,614
693,017
1,503,631
January 1,
2012
USD
December 31,
2011
USD
-
381,256
1,995,472
2,376,728
In determining the recoverability of a trade account receivable, the Group considers any change in the
credit quality of the trade receivable from the date credit was initially granted up to the end of the reporting
period. The concentration of credit risk is limited as the customer base is large and unrelated.
Based on management’s identification for trade accounts receivables that are past due but not impaired,
management considers that those receivables are still realizable because based on its assessment there is
no significant change in credit quality from those customers. For accounts receivables from non-airlines
services, the Group does not maintain any collateral or credit enhancement over those accounts receivable
and does not have any legal right of offset against any amounts owed by the Group to the counterparty. For
receivable from sales of airline ticket, further discussion about credit policy is set forth in Note 46 about
credit risk.
Individually impaired trade accounts receivables consist of accounts which management considers are no
longer recoverable based on its assessment of credit quality and financial condition of the customers. The
Group does not have any collateral over those balances.
Management believes that the allowance for impairment losses from third parties is adequate. No
allowance for impairment loss was provided on receivables from related parties, as management believes
that all such receivables are collectible.
7. OTHER RECEIVABLES
September 30,
2014
(Unaudited)
USD
A ccrued revenues
Emplo yee receivables
Others
To tal
December 31,
2013
USD
2,197,956
2,613,833
1,638,059
6,449,848
3,946,418
2,702,460
2,096,203
8,745,081
December 31,
2012
USD
3,530,753
2,790,444
1,556,416
7,877,613
January 1,
2012
USD
473,521
2,627,707
329,951
3,431,179
December 31,
2011
USD
473,521
2,627,707
329,951
3,431,179
Management believes that all such receivables are collectible thus allowance for impairment losses was not
provided.
8. INVENTORIES
September 30,
2014
(Unaudited)
USD
Spare parts
Catering
Ticketing do cument
Others
To tal
A llo wance fo r decline in value
Net amo unt
December 31,
2013
USD
72,863,883
19,887,292
1,923,464
2,583,030
97,257,669
(1,499,808)
95,757,861
66,955,494
18,372,071
1,105,954
4,339,773
90,773,292
(444,835)
90,328,457
December 31,
2012
USD
56,345,654
23,386,819
617,816
3,592,215
83,942,504
(498,627)
83,443,877
January 1,
2012
USD
63,769,858
19,744,304
574,459
2,491,517
86,580,138
86,580,138
December 31,
2011
USD
58,244,784
19,867,413
792,272
2,519,747
81,424,216
(2,159,700)
79,264,516
Changes in the allowance for decline in value of inventories are as follows:
September 30,
2014
(Unaudited)
USD
B eginning balance
A dditio ns
Reco very
Eliminatio n o f deficit in co nnectio n with
quasi-reo rganizatio n
Ending balance
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
444,835
1,054,973
-
498,627
(53,792)
498,627
-
2,159,700
-
906,339
1,253,361
-
1,499,808
444,835
498,627
(2,159,700)
-
2,159,700
- 32 -
Management believes that the allowance for decline in value of inventories is adequate to cover possible
losses on the decline in inventory value.
At September 30, 2014, December 31, 2013, 2012, and 2011, the inventories of the Group were insured
with PT Asuransi Jasa Indonesia, a related party (Note 45), against fire and other risks under pool policies
with total sum insured of USD 213,933,418, USD 207,224,954, USD 250,000,000 and USD 200,000,000,
respectively. Management believes that the insurance coverage is adequate to cover possible losses on the
inventories insured.
As of September 30, 2014, December 31, 2013, 2012 and 2011, no inventories were used as collateral
except the inventory of PT Aerofood Indonesia (ACS), a subsidiary, which were used as collateral for the
long term loan credit facility from Bank Rakyat Indonesia (Note 23).
9. ADVANCES AND PREPAID EXPENSES
September 30,
2014
(Unaudited)
USD
P repaid rent
A ircraft rental
Spare parts
Fuel
Duty trip
B uilding rental
Insurance
A ircraft maintenance
Others
To tal
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
52,457,598
38,854,659
5,983,935
5,712,129
3,335,545
3,314,049
1,884,412
1,540,400
11,435,293
124,518,020
41,152,438
21,527,352
3,460,239
6,520,618
2,010,476
3,664,789
1,127,983
1,520,335
8,259,216
89,243,446
27,022,376
12,502,839
13,122,596
6,822,858
2,904,595
2,161,665
2,952,388
7,962,428
9,357,797
84,809,542
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
December 31,
2011
USD
28,316,864
15,894,603
10,964,072
4,898,617
1,668,612
1,826,137
557,521
5,004,589
2,755,965
71,886,980
28,316,864
15,894,603
10,964,072
4,898,617
1,668,612
1,826,137
557,521
5,004,589
2,755,965
71,886,980
10. TAXATION
a. Prepaid Taxes
January 1,
2012
USD
December 31,
2011
USD
The Co mpany
Estimated Overpayment o f
Co rpo rate Inco me Tax
Year 2014
Year 2013
Sub to tal
5,892,888
7,521,917
13,414,805
7,521,917
7,521,917
-
-
-
Subsidiaries
Estimated Overpayment o f
Co rpo rate Inco me Tax
Year 2014
Year 2013
Year 2012
Year 2011
Year 2010
Year 2009
Year 2008
Value A dded Tax
Sub to tal
5,937,555
1,436,918
144,527
154,896
175,940
136,930
462,011
3,459,912
11,908,689
1,667,804
1,637,000
55,282
782,504
136,930
462,011
3,311,498
8,053,029
1,752,097
129,100
1,057,826
136,930
462,065
1,641,128
5,179,146
589,917
1,015,344
422,264
462,011
206,579
2,696,115
589,917
1,015,344
422,264
462,011
206,579
2,696,115
25,323,494
15,574,946
5,179,146
2,696,115
2,696,115
To tal
- 33 -
b. Taxes Payable
September 30,
2014
(Unaudited)
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
The Co mpany
Inco me taxes
A rticle 21
A rticle 22
A rticle 23
A rticle 26
A rticle 4 (2)
Inco me tax article 29
Value A dded Taxes
Other taxes
Sub to tal
1,253,287
15,751
973,357
29,529
84,518
6,149,750
45,874
8,552,066
1,367,488
10,371
962,182
9,883
56,641
4,201,956
83,241
6,691,762
1,385,438
729,491
40,575
28,716
7,138,584
4,607,733
107,739
14,038,276
2,812,680
986,050
9,363
65,943
109,150
2,847,358
106,265
6,936,809
2,812,680
986,050
9,363
65,943
109,150
2,847,358
106,265
6,936,809
Subsidiaries
Inco me taxes
A rticle 21
A rticle 23
A rticle 25
A rticle 26
A rticle 4 (2)
Inco me tax article 29
Value A dded Taxes
Lo cal Go vernment Taxes 1
Other taxes
Sub to tal
897,642
503,990
42,998
47,893
215,131
2,500,133
539,962
2,198,337
2,378,228
9,324,315
2,374,541
305,027
260,079
27,206
289,592
2,845,844
1,516,576
2,158,841
568,308
10,346,014
1,459,122
260,168
226,079
9,673
56,934
1,223,596
165,581
1,966,280
1,001,943
6,369,376
1,203,093
238,462
251,144
30,978
18,112
834,615
1,122,612
1,638,426
356,460
5,693,902
1,203,093
238,462
251,144
30,978
18,112
834,615
1,122,612
1,638,426
356,460
5,693,902
17,876,380
17,037,776
20,407,652
12,630,711
12,630,711
To tal
c.
December 31,
2013
USD
Tax Benefit (Expense)
2014
(Nine-mo nth)
(Unaudited)
USD
2013
(Nine-mo nth)
(Unaudited)
USD
2013
(One year)
USD
2012
(One year)
USD
2011
(One year)
USD
Current tax
The Co mpany
Subsidiaries
To tal current tax
(6,748,052)
(6,748,052)
(6,573,199)
(6,573,199)
(9,350,882)
(9,350,882)
(14,691,874)
(7,210,035)
(21,901,909)
(6,507,906)
(7,374,705)
(13,882,611)
Deferred tax
The Co mpany
Subsidiaries
To tal deferred tax
82,916,673
3,111,736
86,028,409
(9,715,019)
3,805,165
(5,909,854)
(2,731,077)
14,466,736
11,735,659
(21,814,137)
3,047,606
(18,766,531)
(14,926,375)
(941,099)
(15,867,474)
-
-
-
(19,541)
(2,957,647)
79,280,357
(12,483,053)
2,384,777
(40,687,981)
(32,707,732)
Tax expense o f the Gro up
related to tax assessment letter
and revised annual tax return
To tal
- 34 -
Current Tax
Reconciliation between income (loss) before tax per consolidated statements of comprehensive income
and taxable income (fiscal loss) of the Company is as follow:
2014
(Nine-mo nth)
(Unaudited)
USD
P ro fit (lo ss) befo re tax per co nso lidated
statements o f co mprehensive inco me
Eliminatio n and adjustments
Inco me (lo ss) befo re tax o f the Co mpany
Tempo rary differences:
A llo wance fo r impairment lo sses
o f acco unts receivable
A llo wance fo r decline in value
o f invento ries
Depreciatio n expense
Impairment o f assets
M aintenance assets
P o st emplo yment benefits
A ccrued expense
Sto ck issuance co st
Sub to tal
No ndeductible expenses/
No n taxable inco me:
Lease liabilities
Inco me subjected to final tax
Expenses that are no t deductible
fo r tax purpo ses
Syndicated lo an
Sto ck o ptio n
Sub to tal
Taxable inco me (fiscal lo ss) befo re fiscal
lo ss carry fo rward
Fiscal lo ss carry fo rward
A ccumulated fiscal lo ss
2013
(Nine-mo nth)
(Unaudited)
USD
2013
(One year)
USD
(298,786,809)
(7,154,752)
(305,941,561)
(2,250,852)
31,804,382
29,553,530
8,815,603
34,113,477
42,929,080
(126,788)
(25,087)
316,420
456,036
3,818,519
8,416,462
(26,185,972)
(5,971,710)
(2,707,404)
(22,300,857)
(38,692)
5,482,337
(32,734,706)
(12,185,025)
(2,338,929)
(41,840,102)
(40,594,680)
(9,974,822)
2012
(One year)
USD
151,530,554
18,204,299
169,734,853
2011
(One year)
USD
96,933,268
(20,672,111)
76,261,157
(64,381)
(19,625)
(28,567)
5,573,535
5,093,951
(37,314,909)
(19,559,059)
(3,118,571)
(49,037,200)
(17,247)
(34,933,900)
6,790,884
(66,991,037)
(6,070,505)
1,079,153
(3,118,571)
(103,325,604)
188,781
(27,684,770)
13,114,025
(39,149,449)
(11,766,826)
(3,743,351)
9,355,714
(59,705,501)
(48,726,529)
(6,872,150)
(66,042,949)
(15,325,404)
(58,503,068)
(11,186,962)
(65,705,323)
(25,075,887)
36,221,276
(14,348,226)
42,361,170
(13,237,509)
55,561,776
(6,208,877)
(32,015,454)
65,729,427
(2,550,927)
(1,130,226)
(7,641,756)
99,472,419
(1,493,922)
2,278,677
9,475,964
(342,590,644)
(38,123,574)
(380,714,218)
(25,524,081)
(25,524,081)
(38,123,574)
(38,123,574)
58,767,493
58,767,493
26,031,620
26,031,620
The details of current tax expense and tax payables (overpayment) are as follows:
2014
(Nine-mo nth)
(Unaudited)
USD
2013
(One year)
USD
2012
(One year)
USD
2011
(One year)
USD
The Co mpany
Current tax expense
-
Less prepaid taxes
Inco me tax - A rticle 25
Sub to tal
Difference due to change in repo rting
currency
Current tax under (o ver) payment
- 35 -
-
14,691,874
6,507,906
(5,766,797)
(203,700)
(384,299)
(2,485,166)
(1,125,342)
(554,111)
(1,728,269)
(5,892,888)
(4,900,895)
(1,775,610)
(524,942)
(320,470)
(7,521,917)
(5,029,049)
(1,705,395)
(427,974)
(390,872)
(7,553,290)
(5,892,888)
(7,521,917)
7,138,584
(6,354,796)
(43,960)
109,150
2014
(Nine-mo nth)
(Unaudited)
USD
Subsidiaries
Current tax expense
P T Garuda M aintenance Facility
A ero A sia
P T A ero Wisata and subsidiaries
P T A ero Systems Indo nesia
P T A bacus Distributio n Systems
Indo nesia
To tal
Difference due to change in repo rting
currency
Less prepaid taxes
2013
(One year)
USD
2012
(One year)
USD
2011
(One year)
USD
4,597,559
2,027,561
34,497
5,716,637
3,229,494
404,751
4,066,920
2,948,154
194,961
3,339,114
3,739,092
296,499
88,435
6,748,052
9,350,882
7,210,035
7,374,705
(10,185,474)
(8,172,842)
(7,738,536)
(170,402)
(6,959,605)
To tal
(3,437,422)
1,178,040
P resented as:
P repaid tax
Tax payable
Net
(5,937,555)
2,500,133
(3,437,422)
(1,667,804)
2,845,844
1,178,040
(528,501)
(1,752,097)
1,223,596
(528,501)
244,698
589,917
(834,615)
(244,698)
Deferred Tax
Details of deferred tax assets and liabilities are as follows:
January 1,
2014
USD
Deferred tax assets
Subsidiaries
P T Citilink Indo nesia
P T A bacus Distributio n Systems Indo nesia
P T Garuda M aintenance Facility A ero A sia
P T A ero Wisata and its subsidiaries
Subto tal
The Co mpany
A llo wance fo r impairment lo ss o f acco unts
receivable
A llo wance fo r decline in value o f invento ries
P ro perty and equipment
Impairment o f asset
P ro visio n fo r lo ng term receivable
M aintenance assets
Estimated liabilities fo r aircraft return and
maintenance co st
Emplo yment benefits o bligatio n
Share issuance co st
Subto tal
To tal deferred tax assets
Subsidiaries
To tal deferred tax liabilities - net
Credited
(charged)
to inco me
fo r the perio d
USD
Reco gnized
in o ther
co mprehensive
inco me
USD
Translatio n
A djustments
USD
September 30,
2014
(Unaudited)
USD
-
-
18,450,302
55,230
8,681,286
1,428,477
28,615,295
15,855,587
84,708
8,681,286
1,587,504
26,209,085
2,594,715
(29,478)
(159,027)
2,406,210
7,147,927
95,770
(28,976,084)
(1,040,291)
4,225,574
(40,062,409)
(31,697)
114,009
3,798,855
(6,546,493)
(4,026,264)
-
-
7,116,230
209,779
(29,203,493)
(1,040,291)
4,225,574
(46,608,902)
13,748,833
20,940,592
779,643
9,530,895
(13,609,550)
2,104,116
(1,492,928)
(676,851)
85,647,662
82,916,673
(4,026,264)
-
15,852,949
19,447,664
102,792
95,178,557
65,280,859
12,599,535
85,322,883
(4,026,264)
-
93,896,154
(108,154)
(3,270,049)
(121,090)
826,616
-
(7,867)
(229,244)
(2,451,300)
(16,987,753)
705,526
-
(7,867)
(2,680,544)
- 36 -
January 1,
2013
USD
Credited
(charged)
to inco me
fo r the year
USD
Reco gnized
in o ther
co mprehensive
inco me
USD
Translatio n
A djustments
USD
December 31,
2013
USD
Deferred tax assets
Subsidiaries
721,959
141,138
8,755,666
1,450,319
14,542,774
(72,423)
(79,706)
94,989
590,854
15,993
5,326
42,196
-
15,855,587
84,708
8,681,286
1,587,504
To tal deferred tax asset - net
11,069,082
14,485,634
654,369
-
26,209,085
7,068,822
117,132
(27,907,056)
(1,106,789)
4,225,574
(34,440,639)
79,105
(21,362)
(1,372,972)
66,498
(5,621,770)
303,944
-
-
7,147,927
95,770
(28,976,084)
(1,040,291)
4,225,574
(40,062,409)
12,374,024
25,830,357
1,096,872
1,559,286
(11,182,417)
1,374,809
(4,889,765)
(1,096,872)
(779,643)
9,530,895
(2,731,077)
303,944
-
13,748,833
20,940,592
779,643
9,530,895
(13,609,550)
393,774
(3,837,481)
(501,928)
483,030
621,116
(536,714)
(108,154)
(3,270,049)
(14,626,124)
(2,749,975)
925,060
(536,714)
(16,987,753)
Reco gnized
in o ther
co mprehensive
inco me
USD
Translatio n
A djustments
USD
The Co mpany
receivable
M aintenance assets
maintenance co st
A ccrued expense
Subto tal
Subsidiaries
January 1,
2012
USD
Deferred tax assets
Subsidiaries
The Co mpany
receivable
M aintenance assets
maintenance co st
A ccrued expense
Subto tal
Subsidiaries
Credited
(charged)
to inco me
fo r the year
USD
December 31,
2012
USD
156,165
8,898,361
1,187,463
312,084
2,827,021
(8,000)
(134,329)
(411,071)
81,690
(2,105,062)
(7,027)
(8,366)
-
673,927
-
721,959
141,138
8,755,666
1,450,319
393,774
10,554,073
2,355,311
(2,120,455)
673,927
11,462,857
6,465,465
1,875,810
(13,850,705)
(1,148,966)
4,224,648
(25,231,261)
603,357
(1,758,678)
(7,982,000)
42,177
926
(9,209,378)
(6,074,351)
-
-
7,068,822
117,132
(27,907,056)
(1,106,789)
4,225,574
(34,440,639)
13,857,084
27,347,983
827,084
2,338,929
16,706,071
(1,483,060)
(1,517,626)
269,788
(779,643)
(21,814,137)
(6,074,351)
-
12,374,024
25,830,357
1,096,872
1,559,286
(11,182,417)
(3,559,838)
13,146,233
- 37 -
692,295
(21,121,842)
(122,168)
(847,770)
(3,837,481)
(6,196,519)
(847,770)
(15,019,898)
Credited
(charged)
to inco me
fo r the year
USD
January 1,
2011
USD
Deferred tax assets
Subsidiaries
Subto tal
Reco gnized
in o ther
co mprehensive
inco me
USD
Translatio n
A djustments
USD
-
156,165
8,898,361
1,187,463
312,084
10,554,073
222,653
8,288,931
647,049
268,267
9,426,900
(61,176)
591,923
540,414
43,817
1,114,978
6,470,371
1,828,615
(4,906)
47,195
-
-
(4,399,000)
4,196,176
(17,576,178)
3,250,034
28,472
(7,655,083)
-
-
6,465,465
1,875,810
(1,148,966)
4,224,648
(25,231,261)
15,989,363
30,289,689
1,762,922
(7,677,688)
30,884,270
(2,132,279)
(2,941,706)
(935,838)
2,338,929
(6,921,193)
(14,926,375)
748,176
748,176
-
13,857,084
27,347,983
827,084
2,338,929
(13,850,705)
16,706,071
40,311,170
(13,811,397)
760,371
-
27,260,144
Subsidiaries
(1,246,717)
(2,056,077)
(257,044)
-
(3,559,838)
(1,246,717)
(2,056,077)
(257,044)
-
(3,559,838)
The Co mpany
receivable
M aintenance assets
maintenance co st
A ccrued expense
Depreciatio n Expense
Subto tal
(5,312)
17,507
12,195
December 31,
2011
USD
-
A reconciliation between the total tax benefit (expenses) and the amounts computed by applying the
effective tax rate to income (loss) before income tax is as follows:
2014
(Nine-mo nth)
(Unaudited)
USD
2013
(Nine-mo nth)
(Unaudited)
USD
Inco me (lo ss) befo re tax per co nso lidated
(298,786,809)
Tax benefit (expense) at effective tax rates
74,696,702
Tax effects o f no n deductible expenses:
The Co mpany
Subsidiaries
A djustment reco gnized in current year
in relatio n to the prio r year deferred tax
o f co mpany and subsidiaries
Tax expenses o f the Co mpany and
its subsidiaries related to SKP and SP T
co rrectio n
Unreco gnized tax lo ss in subsidiaries
Tax benefit (expense) per co nso lidated
(2,250,852)
562,713
2013
(One year)
USD
2012
(One year)
USD
2011
(One year)
USD
8,815,603
151,530,554
96,933,268
(2,203,901)
(37,882,639)
(24,233,317)
3,587,057
(2,714,850)
(3,309,377)
(1,199,594)
8,003,864
(1,528,548)
1,910,438
(3,615,945)
(2,490,087)
(35,546)
2,844,227
(5,636,015)
(1,280,163)
3,811,978
(1,032,001)
867,221
(2,900,780)
(606,475)
(19,541)
(4,892,272)
(4,916,781)
-
79,280,357
(12,483,053)
(40,687,981)
(32,707,732)
- 38 -
2,384,777
11. MAINTENANCE RESERVE FUND AND SECURITY DEPOSITS
September 30,
2014
(Unaudited)
USD
A ircraft maintenance reserve funds (No te 48)
Operating lease security depo sits (No te 48)
To tal
December 31,
2013
USD
618,050,761
163,382,664
781,433,425
December 31,
2012
USD
473,179,589
144,443,468
617,623,057
January 1,
2012
USD
350,678,928
111,254,884
461,933,812
December 31,
2011
USD
244,302,147
96,542,682
340,844,829
241,686,366
87,234,810
328,921,176
12. ADVANCES FOR PURCHASE OF AIRCRAFT
This account represents advances for the purchase of Boeing 777-300ER, Boeing 737-800 NG, Boeing
737-800 MAX, Airbus 330-200, Airbus A320-200, Bombardier CRJ1000, and ATR 72-600 and simulator
equipment. Details of related agreements have been disclosed in Note 49.
Below are the details of advances for purchase of aircraft:
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
A 330
B eginning balance
A dditio ns
Deductio ns
Ending balance
189,873,807
129,990,603
(86,199,598)
233,664,812
151,389,855
158,692,055
(120,208,103)
189,873,807
61,815,277
124,912,043
(35,337,465)
151,389,855
61,815,277
61,815,277
11,375,785
50,439,492
61,815,277
A 320
B eginning balance
A dditio ns
Deductio ns
Ending balance
73,273,287
23,521,903
(12,784,069)
84,011,121
44,217,895
35,308,620
(6,253,227)
73,273,288
24,248,967
19,968,928
44,217,895
24,248,967
24,248,967
24,248,967
24,248,967
B 777-300ER
B eginning balance
A dditio ns
Deductio ns
Transfer o ut to B 737-800 M A X
Ending balance
219,297,500
23,280,314
(115,894,874)
(9,695,040)
116,987,900
279,424,180
203,653,739
(263,780,419)
219,297,500
81,032,560
198,391,620
279,424,180
81,032,560
81,032,560
47,439,170
33,593,390
81,032,560
B 737-800 NG
B eginning balance
A dditio ns
Deductio ns
Transfer o ut to B 737-800 M A X
Ending balance
9,664,720
2,107,666
(11,772,386)
-
14,771,356
8,351,064
(13,457,700)
9,664,720
60,057,488
6,728,850
(52,014,982)
14,771,356
60,057,488
60,057,488
60,017,904
17,852,672
(17,813,088)
60,057,488
B 737-800 M A X
B eginning balance
Transfer in fro m B 777-300 ER and B 737-800 NG
Deductio ns
Ending balance
21,467,426
21,467,426
CRJ1000 NextGen
B eginning balance
A dditio ns
Deductio ns
Ending balance
4,467,371
1,278,912
(5,746,283)
-
7,354,133
8,525,699
(11,412,461)
4,467,371
300,000
23,811,393
(16,757,260)
7,354,133
A TR 72-600
B eginning balance
A dditio ns
Deductio ns
Ending balance
2,418,000
2,418,000
2,418,000
2,418,000
-
-
-
Flight Simulato r Equipment
B eginning balance
A dditio ns
Deductio ns
Ending balance
1,371,750
1,210,455
(683,360)
1,898,845
1,371,750
1,371,750
-
-
-
460,448,104
500,366,436
497,157,419
227,454,292
227,454,292
To tal
-
- 39 -
-
-
-
300,000
300,000
300,000
300,000
13. INVESTMENT IN ASSOCIATES
P T Gapura A ngkasa
P T A ero prima
P T A ero nurti Catering Services
To tal
Do micile
P ercentage o f
Ownership
%
Jakarta
Jakarta
Jakarta
37.50
40.00
45.00
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
16,327,538
865,766
131,041
17,324,345
16,487,829
846,645
125,442
17,459,916
15,337,925
1,005,469
174,095
16,517,489
January 1,
2012
USD
14,477,200
852,798
179,393
15,509,391
December 31,
2011
USD
14,011,078
841,257
134,380
14,986,715
The associates of the Group are operating exclusively in Indonesia.
Changes in investments in associates are as follow:
September 30,
2014
(Unaudited)
USD
P T Gapura A ngkasa
B alance at beginning o f year
Equity in net inco me
Dividends
Eliminatio n o f deficit in co nnectio n
with quasi-reo rganizatio n
B alance at end o f year
P T A ero prima
Equity in net inco me
Dividends
Translatio n adjustment
Equity in net inco me (lo ss)
Translatio n adjustment
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
16,487,829
310,223
(470,514)
15,337,925
1,833,870
(683,966)
14,477,200
1,651,197
(790,472)
14,011,078
-
13,047,101
1,669,913
(705,936)
16,327,538
16,487,829
15,337,925
466,122
14,477,200
14,011,078
852,798
273,203
(69,702)
(50,830)
841,257
-
922,839
13,037
(89,315)
(5,304)
-
11,541
852,798
841,257
846,645
112,371
(93,250)
1,005,469
56,463
865,766
846,645
125,442
5,976
(377)
174,095
(29,917)
(18,736)
179,393
3,146
(8,444)
134,380
-
168,676
(33,990)
(306)
131,041
125,442
174,095
45,013
179,393
134,380
(215,287)
1,005,469
Summarized financial information in respect of associates is set out below:
A ssets
Liabilities
Revenue
P ro fit (lo ss)
USD
USD
USD
USD
September 30, 2014 (Unaudited)
P T Gapura A ngkasa
P T A ero prima
To tal
59,396,498
25,234,973
74,239,691
827,261
4,094,736
1,959,173
789,063
280,928
751,656
64,242,890
586,040
27,780,186
681,139
75,709,893
13,278
1,121,467
4,890,320
December 31, 2013
58,472,120
24,732,914
92,965,047
P T A ero prima
4,026,270
1,920,626
3,762,142
To tal
682,529
63,180,919
503,798
27,157,338
893,767
97,620,956
(66,482)
4,964,996
61,796,936
22,415,061
88,839,886
4,403,192
5,003,254
2,518,434
5,270,071
683,008
658,699
67,458,889
371,850
25,305,345
1,098,394
95,208,351
6,989
5,093,189
55,880,180
16,190,189
77,504,489
4,453,102
4,068,977
1,965,834
4,762,991
500,115
60,449,272
201,493
18,357,516
720,109
82,987,589
P T Gapura A ngkasa
141,158
December 31, 2012
P T Gapura A ngkasa
P T A ero prima
To tal
December 31, 2011
P T Gapura A ngkasa
P T A ero prima
To tal
- 40 -
32,593
(75,536)
4,410,159
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2013 (UNAUDITED), AND THE YEARS ENDED DECEMBER 31, 2013, 2012 AND
14. PROPERTY AND EQUIPMENT
January 1,
2014
USD
A cquisitio n Co st/Revaluatio n:
A ircraft assets
Direct A cquisitio n
A irframes
Engines
Simulato rs
Ro table parts
M aintenance assets
A irframes
Engines
Leased assets
A irframes
Engines
Cabin refurbrishment
Leaseho ld impro vement
No n aircraft assets
Equipment
Hardware
Vehicles
Engines
Installatio n
Land
Land right
B uildings and infrastructure
A ssets under co nstructio n
B uildings
B uilding, o perate, transfer
Engines
Installatio n
To tal
A dditio ns
USD
Deductio ns
USD
Reclassificatio n
USD
Currency
co nversio n
USD
To tal befo re
revaluatio n
adjustment
USD
Revaluatio ns
surplus
USD
September 30,
2014
(Unaudited)
USD
(6,099,167)
13,787,761
-
143,746,288
139,785,527
95,615,960
147,615,592
95,615,960
147,615,592
143,746,288
139,785,527
-
Co st
Revaluatio n
USD
USD
24,667,572
67,839,366
94,776,895
136,930,314
4,279,056
6,156,359
839,065
10,685,278
(1,787,058)
-
120,898,827
53,789,099
-
-
149,845,455
125,997,766
95,615,960
147,615,592
38,356,668
108,560,154
8,133,120
51,449,096
(111,367)
(6,949,059)
-
-
46,378,421
153,060,191
-
46,378,421
153,060,191
46,378,421
153,060,191
-
614,627,621
186,222,911
50,874,174
74,320,636
21,141,639
26,654,835
-
(2,413,125)
(22,840,573)
-
(120,898,827)
(53,789,099)
-
-
512,457,308
159,088,647
28,033,601
74,320,636
-
512,457,308
159,088,647
28,033,601
74,320,636
512,457,308
159,088,647
28,033,601
74,320,636
-
155,406,350
4,552,988
90,427,904
10,096,539
5,974,038
93,402,158
62,202
85,915,105
36,425,753
7,311,315
2,684,056
2,165,668
615,137
261,023
1,926,064
21,739,905
(214,054)
(2,911,020)
(92,732)
(42,098)
(1,542,782)
(39,655)
2,137,234
160,618
196,191
450,021
1,701,005
(4,598,857)
164,099,090
7,237,044
90,293,205
10,755,335
6,359,993
93,878,001
62,202
87,249,296
54,152,502
-
164,099,090
7,237,044
90,293,205
10,755,335
6,359,993
93,878,001
62,202
87,249,296
54,152,502
164,099,090
7,237,044
90,293,205
10,755,335
6,359,993
62,202
54,152,502
93,878,001
87,249,296
-
7,726,491
212,406
8,342,703
-
8,342,703
8,342,703
-
2,040,703
285,312
440,544
1,889,932,397
11,389
166,265,411
2,049,942
285,083
440,313
2,017,618,286
7,688,594
2,049,942
285,083
440,313
2,025,306,880
2,049,942
285,083
440,313
1,560,647,768
464,659,112
(38,943,523)
403,806
450,018
- 41 -
(541,755)
610,653
(24,227)
(29,161)
25,822
(750,096)
625,356
(2,149)
(229)
(231)
(86,017)
January 1,
2014
USD
A ccumulated depreciatio n:
A ircraft assets
A irframes
Engines
Simulato rs
Ro table parts
M aintenance assets
A irframes
Engines
Leased assets
A irframes
Engines
Cabin refurbishment
Equipment
Hardware
Vehicles
Engine
Installatio n
B uildings & Infrastructure
Leased assets vehicles
B uildings
B uildings, o perate, transfer
Engine
Installatio n
To tal
Net carrying value
A dditio ns
USD
Deductio ns
USD
Reclassificatio n
USD
To tal befo re
revaluatio n
adjustment
USD
Currency
co nversio n
USD
Revaluatio n
surplus
USD
September 30,
2014
(Unaudited)
USD
1,704,973
2,061,258
49,039,675
114,532,652
12,257,736
23,193,561
3,037,221
3,532,765
(1,823,889)
-
26,494,561
25,893,339
-
-
40,457,270
49,324,269
52,076,896
118,065,417
-
40,457,270
49,324,269
52,076,896
118,065,417
12,135,100
72,755,532
3,107,362
26,055,297
(449,787)
(6,573,811)
-
-
14,792,675
92,237,018
-
14,792,675
92,237,018
398,664,487
88,484,418
46,235,926
20,961,223
10,592,403
12,552,265
4,049,046
5,194,638
(2,413,125)
(22,840,573)
-
(26,494,561)
(25,893,339)
-
-
380,349,204
75,143,344
27,444,399
26,155,861
-
380,349,204
75,143,344
27,444,399
26,155,861
121,769,564
5,344,950
76,195,556
3,819,204
6,071,703
504,210
36,149
8,775,004
2,647,215
3,867,451
1,223,677
423,271
4,873,977
-
(222,720)
(1,678,017)
(91,606)
(42,098)
(265,974)
-
58,079
(58,079)
-
130,106,759
7,992,165
78,304,454
4,803,603
6,350,097
4,927,683
36,149
-
130,106,759
7,992,165
78,304,454
4,803,603
6,350,097
4,927,683
36,149
3,745,581
1,508,474
5,254,055
-
5,254,055
2,061,652
308,432
401,257
1,026,833,500
16,747
126,908,110
2,075,907
308,203
401,026
1,116,606,454
-
2,075,907
308,203
401,026
1,116,606,454
-
-
(36,401,600)
-
863,098,897
(273,168)
(80,536)
(147,670)
(102,779)
(126,451)
(2,492)
(229)
(231)
(733,556)
908,700,426
- 42 -
January 1,
2013
USD
A ircraft assets
A irframes
Engines
Simulato rs
Ro table parts
M aintenance assets
A irframes
Engines
A ssets in pro gress
Leased assets
A irframes
Engines
Cabin refurbrishment
Equipment
Hardware
Vehicles
Engines
Installatio n
Land
Land right
Lease assets vehicles
B uildings
Engines
Installatio n
To tal
A dditio ns
USD
Deductio ns
USD
Reclassificatio n
USD
To tal befo re
revaluatio n
adjustment
USD
Currency
co nversio n
USD
32,292,731
84,175,232
68,419,311
133,106,348
3,715,377
28,486,940
3,852,142
(2,795,352)
(3,705,028)
(2,129,356)
(28,176)
(5,318,576)
(16,177,369)
-
-
24,178,803
68,008,212
94,776,895
136,930,314
22,886,865
95,015,073
3,047,465
11,595,417
30,252,344
10,452,454
(190,155)
(12,292,463)
-
4,064,541
(4,414,800)
(13,499,919)
-
38,356,668
108,560,154
-
574,631,029
154,869,506
50,777,728
72,016,988
39,748,632
39,017,372
778,207
2,303,648
(3,123,333)
(6,576,695)
(681,761)
-
3,371,294
(1,087,273)
-
-
614,627,621
186,222,911
50,874,174
74,320,636
140,545,088
4,477,522
91,577,808
9,013,648
6,021,825
87,673,267
62,202
96,717,485
10,413,266
99,638
17,169,075
75,466
7,741,366
1,666,848
629,829
111,667
87,763,663
38,456,346
-
(259,148)
(3,729,739)
(223,206)
(56,907)
(13,832)
(48,736)
-
1,751,378
189,755
1,730,528
845,609
670,285
(835,991)
(11,640,202)
(100,173)
5,428,036
898,324
2,267,475
317,223
472,561
1,746,325,320
324,715,116
(249)
(35,854,135)
1,400,132
(39,050,779)
- 43 -
(3,800,044)
(5,351,286)
(2,091,280)
(1,466,318)
(10,668,524)
(90,779,237)
(803,657)
534
(226,773)
(31,662)
(32,017)
(115,250,264)
155,406,350
4,552,988
90,427,904
10,096,539
5,974,038
77,772,864
62,202
92,817,184
36,425,753
-
Revaluatio ns
surplus
USD
488,769
(168,846)
-
December 31,
2013
USD
December 31, 2013
Co st
Revaluatio n
USD
USD
24,667,572
67,839,366
94,776,895
136,930,314
94,776,895
136,930,314
24,667,572
67,839,366
-
-
38,356,668
108,560,154
-
38,356,668
108,560,154
-
-
-
614,627,621
186,222,911
50,874,174
74,320,636
614,627,621
186,222,911
50,874,174
74,320,636
-
155,406,350
4,552,988
90,427,904
10,096,539
5,974,038
93,402,158
62,202
85,915,105
36,425,753
-
155,406,350
4,552,988
90,427,904
10,096,539
5,974,038
62,202
36,425,753
-
93,402,158
85,915,105
-
15,629,294
(6,902,079)
-
7,726,491
-
7,726,491
7,726,491
-
2,040,703
285,312
440,544
1,880,885,259
9,047,138
2,040,703
285,312
440,544
1,889,932,397
2,040,703
285,312
440,544
1,618,108,196
271,824,201
January 1,
2013
USD
A ircraft assets
A irframes
Engines
Simulato rs
Ro table parts
M aintenance assets
A irframes
Engines
Leased assets
A irframes
Engines
Cabin refurbishment
Equipment
Hardware
Vehicles
Engine
Installatio n
B uildings
Engine
Installatio n
To tal
Net carrying value
48,713,890
110,971,083
A dditio ns
USD
114,642,354
5,044,881
72,045,978
4,290,127
6,660,780
109,252
9,425,776
27,918,717
1,922,801
3,583,985
3,263,016
24,468,664
14,579,720
21,284,917
12,203,408
6,602,778
10,423,256
300,069
8,164,616
765,965
483,533
6,896,241
6,502
2,130,388
1,615,193
2,281,961
340,343
433,275
948,246,186
4,498
153,913,655
8,822,792
61,284,529
387,516,906
73,884,923
34,714,279
14,358,445
Deductio ns
USD
Reclassificatio n
USD
(338,124)
(1,399,077)
(1,597,017)
(22,416)
(190,155)
(11,954,708)
(3,123,333)
(6,576,695)
(681,761)
(259,674)
(2,239,612)
(222,723)
(56,907)
(362)
-
(7,382,679)
(24,458,382)
239,446
(1,042,953)
(308,806)
(108,727)
(110,235)
17,750
(24,505)
(74,229)
(5,690,611)
(106,850)
(249)
(28,662,812)
(39,050,780)
798,079,135
To tal befo re
revaluatio n
adjustment
USD
Currency
co nversio n
USD
Revaluatio n
surplus
USD
December 31,
2013
USD
-
1,704,973
2,061,258
49,039,675
114,532,652
-
1,704,973
2,061,258
49,039,675
114,532,652
-
12,135,100
72,755,532
-
12,135,100
72,755,532
-
398,664,487
88,484,418
46,235,926
20,961,223
-
398,664,487
88,484,418
46,235,926
20,961,223
121,769,564
5,344,950
76,195,556
3,819,204
6,071,703
504,210
36,149
-
121,769,564
5,344,950
76,195,556
3,819,204
6,071,703
504,210
36,149
3,745,581
-
3,745,581
2,061,652
308,432
401,257
1,026,833,500
-
2,061,652
308,432
401,257
1,026,833,500
(2,926,137)
(1,793,176)
(989,661)
(941,475)
(701,058)
27,244
(224,807)
(31,662)
(32,017)
(7,612,748)
863,098,897
- 44 -
December 31,
2011
USD
Acquisition Cost/Revaluation:
Aircraft assets
Direct Acquisition
Airframes
Engines
Simulators
Rotable parts
M aintenance assets
Airframes
Engines
Assets in progress
Leased assets
Airframes
Engines
Cabin refurbishment
Leasehold improvement
Non aircrat assets
Direct Acquisition
Equipment
Hardware
Vehicles
Engines
Installation
Land
Land Right
Assets under construction
Buildings
Building, operate, transfer
Engines
Installation
Total
32,882,495
77,413,402
62,234,571
124,262,526
Elimination
due to quasi
reorganisation
USD
2,837
6,184,740
(439,290)
January 1,
2012
USD
Additions
USD
Deductions
USD
32,885,332
77,413,402
68,419,311
123,823,236
1,730,043
15,850,162
9,283,112
-
Reclassifications
USD
(6,573,215)
(21,309,973)
-
Total before
revaluation
adjustment
USD
Currency
conversion
USD
Revaluations
surplus
USD
December 31,
2012
USD
December 31, 2012
Cost
Revaluation
USD
USD
-
28,042,160
71,953,591
68,419,311
133,106,348
4,250,571
12,221,641
-
32,292,731
84,175,232
68,419,311
133,106,348
68,419,311
133,106,348
32,292,731
84,175,232
-
20,670,604
58,745,591
2,451,657
-
20,670,604
58,745,591
2,451,657
2,216,261
36,269,482
595,808
-
-
-
22,886,865
95,015,073
3,047,465
-
22,886,865
95,015,073
3,047,465
22,886,865
95,015,073
3,047,465
-
510,610,017
95,291,171
50,777,728
56,686,518
-
510,610,017
95,291,171
50,777,728
56,686,518
64,021,012
55,247,777
15,330,470
-
4,330,558
-
-
574,631,029
154,869,506
50,777,728
72,016,988
-
574,631,029
154,869,506
50,777,728
72,016,988
574,631,029
154,869,506
50,777,728
72,016,988
-
140,545,088
4,477,522
91,577,808
9,013,648
6,021,825
74,457,819
62,202
90,076,537
10,413,266
99,638
13,215,448
6,640,948
-
140,545,088
4,477,522
91,577,808
9,013,648
6,021,825
87,673,267
62,202
96,717,485
10,413,266
99,638
140,545,088
4,477,522
91,577,808
9,013,648
6,021,825
62,202
10,413,266
99,638
87,673,267
96,717,485
-
5,428,036
-
5,428,036
5,428,036
-
2,267,475
317,223
472,561
1,709,996,712
36,328,608
2,267,475
317,223
472,561
1,746,325,320
2,267,475
317,223
472,561
1,445,466,605
300,858,715
125,247,065
3,141,516
80,151,505
6,780,133
6,024,612
71,430,150
93,246,798
3,970,937
130,359
6,709,011
638,771
10,865,697
239,557
(76,952)
(101,779)
-
131,956,076
3,780,287
91,033,531
7,019,690
5,947,660
71,430,150
648,909
93,246,798
3,869,158
130,359
9,304,051
697,235
6,946,195
918,954
197,803
360,315
2,831,433
8,459,473
-
3,234,574
(33,343)
3,201,231
2,222,118
2,340,323
327,415
482,846
1,513,189,000
232,481,704
2,340,323
327,415
482,846
1,488,534,513
23,989,249
(511,974)
(5,736,157)
(1,600)
(586,707)
(22,003)
(6,858,441)
- 45 -
718,635
486,177
935,116
272,088
1,085,506
(7,355,118)
(1,571,553)
4,687
(28,977,092)
(921,700)
(1,151,938)
141,488
(395,726)
1,581,848
1,353,424
(321,809)
(30,721)
(72,848)
(10,192)
(10,285)
161,541
December 31,
2011
USD
Accumulated depreciation:
Aircraft assets
Direct Acquisition
Airframes
Engines
Simulators
Rotable parts
M aintenance assets
Airframes
Engines
Leased assets
Airframes
Engines
Cabin refurbishment
Non aircraft assets
Direct Acquisition
Equipment
Hardware
Vehicles
Engines
Installation
Buildings
Buildings, operate, transfer
Engines
Installation
Total
Net carrying value
Elimination
due to quasi
reorganisation
USD
January 1,
2012
USD
Additions
USD
Total before
revaluation
adjusments
USD
Revaluations
surplus
USD
December 31,
2012
USD
Deductions
USD
Reclassification
USD
Currency
conversion
USD
(7,713,298)
(22,267,942)
-
-
48,713,890
110,971,083
-
48,713,890
110,971,083
46,496,395
107,050,861
-
46,496,395
107,050,861
7,713,298
22,267,942
2,217,495
3,920,222
-
6,090,123
36,397,140
-
6,090,123
36,397,140
2,732,669
24,887,389
-
-
-
8,822,792
61,284,529
-
8,822,792
61,284,529
375,849,499
62,902,738
22,229,219
8,163,117
-
375,849,499
62,902,738
22,229,219
8,163,117
11,667,407
10,982,185
12,485,060
6,195,328
-
-
-
387,516,906
73,884,923
34,714,279
14,358,445
-
387,516,906
73,884,923
34,714,279
14,358,445
104,625,909
1,259,099
62,406,735
3,813,010
3,902,585
69,286
-
104,625,909
1,259,099
62,406,735
3,813,010
3,902,585
69,286
7,787,438
937,353
9,683,525
600,571
319,261
4,519,814
31,932
114,642,354
5,044,881
72,045,978
4,290,127
6,660,780
109,252
-
114,642,354
5,044,881
72,045,978
4,290,127
6,660,780
109,252
1,127,031
-
1,127,031
1,003,357
2,130,388
-
2,130,388
2,349,296
350,535
443,560
845,526,138
-
2,349,296
350,535
443,560
845,526,138
4,388
129,956,634
2,281,961
340,343
433,275
948,246,186
-
2,281,961
340,343
433,275
948,246,186
643,008,375
(1,111,904)
(4,078,435)
(1,067)
(5,191,406)
667,662,863
2,851,830
2,848,429
2,109,173
130,811
2,698,241
(3,861,210)
6,955
(23,197,011)
489,081
1,924,980
(253,198)
(259,307)
(658,604)
1,079
(71,723)
(10,192)
(10,285)
1,151,831
798,079,135
- 46 -
January 1,
2011
USD
A ircraft assets
A irframes
Engines
Simulato rs
Ro table parts
M aintenance assets
A irframes
Engines
A ssets in pro gress
Leased assets
A irframes
Engines
Cabin refurbishment
No n aircrat assets
Equipment
Hardware
Vehicles
Engines
Installatio n
Land
Land Right
B uildings
Engines
Installatio n
To tal
A dditio ns
USD
Deductio ns
USD
Reclassificatio ns
USD
Currency
co nversio n
USD
To tal befo re
revaluatio n
adjustment
USD
25,657,027
135,394,030
44,285,155
118,969,467
6,910,163
9,098,279
17,949,416
5,066,328
(35,760,724)
(7,944,959)
-
27,551,485
(44,835,384)
226,731
-
24,357,951
91,711,966
62,234,571
124,262,526
25,187,112
78,188,859
9,629,438
8,718,808
16,929,688
10,370,718
(13,235,315)
(36,372,956)
-
(17,548,499)
-
20,670,605
58,745,591
2,451,657
490,617,401
93,551,226
51,217,881
63,775,525
25,249,958
15,209,478
695,043
7,714,193
(5,257,342)
(13,469,533)
(1,135,196)
(14,803,200)
-
128,965,260
1,191,877
80,578,937
7,876,840
7,135,117
63,560,193
89,388,388
2,159,101
130,615
3,602,829
1,632,702
4,866,022
959,608
97,970
1,781,880
6,490,617
6,077,551
1,270,333
(8,178,900)
316,937
(5,422,719)
(2,659,228)
(1,019,982)
(634,167)
(540,613)
-
1,604,186
1,630,388
1,185,156
165,110
230,776
1,520,644,677
211,836
152,533,808
(5,093)
(65,699)
(146,188,689)
-
944,641
331,604
589,983
(100,955)
(1,405,962)
(4,938,436)
(5,095,203)
1,208,614
169,087
170,640
(42,731,654)
- 47 -
(86,765)
(202,339)
12,930
(87,538)
1,835,561
(1,553,338)
1,370,101
(1,270,589)
(48,354)
(6,782)
(64,707)
(101,820)
Revaluatio ns
surplus
USD
8,524,543
(14,298,565)
-
December 31,
2011
USD
December 31, 2011
Co st
Revaluatio n
USD
USD
32,882,494
77,413,401
62,234,571
124,262,526
62,234,571
124,262,526
32,882,494
77,413,401
-
-
20,670,605
58,745,591
2,451,657
20,670,605
58,745,591
2,451,657
-
510,610,017
95,291,171
50,777,728
56,686,518
-
510,610,017
95,291,171
50,777,728
56,686,518
510,610,017
95,291,171
50,777,728
56,686,518
-
125,247,065
3,141,516
80,151,505
6,780,133
6,024,612
65,771,672
88,753,064
3,970,937
130,359
5,658,479
4,493,734
-
125,247,065
3,141,516
80,151,505
6,780,133
6,024,612
71,430,151
93,246,798
3,970,937
130,359
125,247,065
3,141,516
80,151,505
6,780,133
6,024,612
3,970,937
130,359
71,430,151
93,246,798
-
3,234,574
-
3,234,574
3,234,574
-
2,340,323
327,415
482,846
1,484,156,322
4,378,191
2,340,323
327,415
482,846
1,488,534,513
2,340,323
327,415
482,846
1,213,561,669
274,972,844
January 1,
2011
USD
A ircraft assets
A irframes
Engines
Simulato rs
Ro table parts
M aintenance assets
A irframes
Engines
Leased assets
A irframes
Engines
Cabin refurbishment
Equipment
Hardware
Vehicles
Engines
Installatio n
B uildings
Engines
Installatio n
To tal
Net carrying value
A dditio ns
USD
Deductio ns
USD
To tal befo re
revaluatio n
adjusments
USD
Reclassificatio n
USD
Currency
co nversio n
USD
Revaluatio ns
surplus
USD
December 31,
2011
USD
30,266,826
(32,299,396)
(11,377)
-
46,496,395
107,050,861
-
46,496,395
107,050,861
45,255,019
100,846,400
4,760,760
38,954,970
1,241,376
6,215,838
(35,027,586)
(6,655,574)
-
15,650,025
50,208,589
3,675,413
22,561,507
(13,235,315)
(36,372,956)
-
-
6,090,123
36,397,140
-
6,090,123
36,397,140
368,781,340
65,163,672
8,961,072
4,482,115
10,893,501
11,208,599
13,268,147
3,681,002
(3,825,342)
(13,469,533)
-
-
-
375,849,499
62,902,738
22,229,219
8,163,117
-
375,849,499
62,902,738
22,229,219
8,163,117
101,850,527
1,123,392
63,656,641
5,651,065
4,473,534
32,759
6,815,519
135,707
3,551,232
509,713
439,903
4,965,229
38,070
(4,275,410)
(4,701,217)
(2,245,414)
(776,945)
(387,496)
-
104,625,909
1,259,099
62,406,735
3,813,010
3,902,585
69,286
-
104,625,909
1,259,099
62,406,735
3,813,010
3,902,585
69,286
317,771
809,260
1,127,031
-
1,127,031
1,164,299
165,110
230,776
838,014,106
107,617
133,833,363
2,349,296
350,535
443,560
845,526,138
-
2,349,296
350,535
443,560
845,526,138
(5,009)
(65,699)
(121,043,496)
682,630,571
242,358
(151,694)
(165,211)
(4,452,947)
1,215,501
169,087
170,640
(5,016,213)
(7,085)
(99,921)
49,340
(68,696)
(124,786)
(1,543)
(25,495)
16,338
226
(261,622)
643,008,375
- 48 -
Depreciation expense charged to operations for the nine month periods ended September 30, 2014 and for
years ended December 31, 2013, 2012, and 2011 amounted to USD 126,908,110, USD 153,913,655,
USD 129,956,634 and USD 133,833,363 respectively.
Disposal of property and equipment are as follows:
Net carrying value
P ro ceeds net o f the selling expenses
Gain o n sale o f pro perty and equipment
September 30,
2014
(Unaudited)
USD
September 30,
2013
USD
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012/
December 31,
2011
USD
2,541,926
3,384,141
842,215
1,402,913
915,484
(487,429)
7,191,323
10,314,619
3,123,296
1,667,035
3,893,794
2,226,759
25,145,193
27,608,123
2,462,930
The revaluation of land, buildings and aircrafts was performed by independent appraisers registered in OJK
(formerly Bapepam), KJPP Fuadah, Rudi & Rekan in 2013 and 2012 and KJPP Doli Siregar & Rekan in
2011, as reported in their report dated January 10, 2014, relating to fixed asset valuation as of
November 30, 2013 and dated February 11, 2013 for the valuation as of December 31, 2012 and dated
March 5, 2012 for the valuation as of December 31, 2011.
Based on the appraisal reports the valuation was determined in accordance with the Indonesian Appraisal
Standards (SPI), referring to recent arm’s length market transaction and Bapepam-LK’s rule No. VIII.C.4.
regarding valuation and presentation of asset valuation report in capital market. Appraisal method used is
the market value and cost approach.
The difference between the fair value and carrying amount of the assets net of tax, was recorded in other
comprehensive income and accumulated in equity as “Revaluation Surplus Reserve”.
On June 30, 2014, the Company reclassified six A330 aircraft under finance lease with book value of
USD 174,687,925 into directly owned assets in connection with the settlement of the ECA (Note 24). In
accordance with the Company's policy relating to the use of revaluation model for aircraft, land and
buildings as of June 30, 2014, the Company measured the market value of the six A330 aircraft using the
estimate measured by KJPP Fuadah Rudi & Rekan, on their report dated October 31, 2014, and
recognised the difference as gain under other comprehensive income which amounted to USD 16,105,056
and impairment of USD 8,416,462 in profit and loss.
In April 2013, one aircraft registered as PK-GGN owned by PT Citilink Indonesia, a subsidiary, was
damaged from a "hard landing" at the Minangkabau International Airport, Padang. The subsidiary claimed
and received the insurance coverage from PT Asuransi Jasa Indonesia, a related party (Note 45),
amounting to USD 8,715,000. The book value of the aircraft amounted to USD 4,763,179. The difference of
USD 3,951,821 between the agreed claim and the book value of the aircraft is recorded as other income.
If property and equipment, aircraft, land, building and improvements were stated at the historical cost basis,
the carrying amount would be as follows:
A ircraft
Land
B uilding and impro vements
To tal
September 30,
2014
(Unaudited)
USD
September 30,
2013
USD
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012/
December 31,
2011
USD
43,255,301
29,483,545
37,202,640
109,941,486
84,110,915
38,337,907
29,492,621
151,941,443
78,386,414
38,679,620
29,944,840
147,010,874
119,746,530
29,714,970
42,069,930
191,531,430
112,579,977
41,285,003
48,988,920
202,853,900
Management believes that there is no significant difference between the fair value and carrying value of
property and equipment, if those assets (excluding aircraft, land, building and infrastructure) have been
measured at fair value basis.
- 49 -
ENDED DECEMBER 31, 2013, 2012 AND JANUARY 1, 2012/DECEMBER 31, 2011 – Continued
As of September 30, 2014, assets under construction consisted of the following:
Carrying amount
USD
Softw are
Machinery construction
Building construction
Hangar IV
Total
187,400
827,562
4,923,110
48,214,430
54,152,502
Percentage of
Total contract
completion
USD
%
234,250
1,103,420
5,649,049
51,312,226
58,298,945
Estimated
completion
80%
75%
10% - 95%
94%
2014
2014
2015
2014
Gross carrying amount of property that have been fully depreciated and still in use as of September 30,
2014 amounted to USD 33,676,368.
Property and equipment of the Group are used as collateral for bank loan, long-term loans and lease
liabilities (Notes 18, 23 and 24).
As of September 30, 2014, four Boeing 737-300 aircraft owned by PT Citilink Indonesia, a subsidiary, are
temporarily idle with carrying amount of USD 3,023,146.
As of September 30, 2014, December 31, 2013, 2012 and 2011 property and equipment except land, were
insured with insurance companies against fire, theft and other possible risk as follows:
Year
Sum insured
Insurance company
USD
2014
2013
2012
2011
Rupiah
Related parties (Note 45)
PT Asuransi Jasa Indonesia and PT Tugu Pratama Indonesia
Third parties
PT Asuransi Central Asia and PT Himalaya Pelindung
236,838,095
1,864,021,790,056
Third parties
PT Asuransi Central Asia and PT Himalaya Pelindung
261,088,683
1,826,624,232,028
Third party
PT Asuransi Takaful Umum
103,850,000
2,868,594,809,125
Third party
PT Asuransi Takaful Umum
709,777,408
2,734,283,782,328
Management believes that the insurance coverage is adequate to cover possible losses on the assets
insured.
- 50 -
THEN ENDED DECEMBER 31, 2013, 2012 AND JANUARY 1, 2012/ DECEMBER 31, 2011 – Continued
15. INVESTMENT PROPERTIES
September 30,
2014
(Unaudited)
USD
B eginning balance
Deductio n
Reclassificatio n to fixed asset
Gain o n revaluatio n
Ending balance
22,020,790
(450,021)
21,570,769
December 31,
2013
USD
December 31,
2012
USD
18,912,898
3,107,892
22,020,790
January 1,
2012
USD
18,230,877
682,021
18,912,898
18,230,877
18,230,877
December 31,
2011
USD
19,200,175
(1,309,616)
340,318
18,230,877
The Group has investment properties in land and building.
The revaluation of investment properties was performed by independent appraisers registered with OJK
(formerly Bapepam), KJPP Fuadah, Rudi & Rekan in 2013 and 2012 and KJPP Doli Siregar & Rekan in
2011, as reported in their report dated January 10, 2014, relating to investment property valuation as of
November 30, 2013 and dated February 11, 2013 for the valuation as of December 31, 2012 and dated
March 5, 2012 for the valuation as of December 31, 2011.
Based on the appraisal reports the valuation was determined in accordance with the Indonesian Appraisal
Standards (SPI), referring to recent arm’s length market transaction and Bapepam-LK’s rule No. VIII.C.4.
regarding valuation and presentation of asset valuation report in capital market. Appraisal method used is
the market value and cost approach.
The difference between the fair value and carrying amount of the asset is recorded as gain on revaluation
of investment properties.
As of December 31, 2011, net book value of disposed investment property amounted to USD 1,309,616,
with gain recognised amounted to USD 168,395.
16. INTANGIBLE ASSETS– NET
January 1, 2014
USD
Acquisition cost:
Direct acquisitions
Softw are
License
Leased assets
Softw are
License
Softw are still under
installation
Total
Accumulated amortization:
Direct acquisitions
Softw are
License
Leased assets
Softw are
License
Total
Net carrying value
Additions
USD
Reclassifications
USD
September 30, 2014
(Unaudited)
USD
638,610
12,847,359
11,750
-
-
650,360
12,847,359
1,425,866
175,042
-
-
1,425,866
175,042
59,748
15,146,625
11,750
-
59,748
15,158,375
500,909
7,330,972
25,900
808,715
-
526,809
8,139,687
412,050
79,813
8,323,744
221,607
14,643
1,070,865
-
633,657
94,456
9,394,609
6,822,881
5,763,766
- 51 -
January 1, 2013
USD
Acquisition cost:
Direct acquisitions
Softw are
License
Leased assets
Softw are
License
installation
Total
Direct acquisitions
Softw are
License
Leased assets
Softw are
License
Total
Net carrying value
Direct acquisitions
Softw are
License
Leased assets
Softw are
License
Total
Net carrying value
Reclassifications
USD
December 31, 2013
USD
619,335
10,721,677
19,275
574,162
1,551,520
638,610
12,847,359
1,073,866
175,042
352,000
-
-
1,425,866
175,042
1,606,018
14,195,938
5,250
950,687
468,284
6,249,365
32,625
1,081,607
-
500,909
7,330,972
197,240
63,943
6,978,832
214,810
15,870
1,344,912
-
412,050
79,813
8,323,744
(1,551,520)
-
7,217,106
January 1, 2012
USD
Acquisition cost:
Direct acquisitions
Softw are
License
Leased assets
Softw are
License
installation
Total
Additions
USD
59,748
15,146,625
6,822,881
Additions
USD
Reclassifications
USD
December 31, 2012
USD
553,880
6,122,081
7,017
-
58,438
4,599,596
619,335
10,721,677
438,942
175,042
634,924
-
-
1,073,866
175,042
2,872,457
10,162,402
3,391,595
4,033,536
443,081
5,692,332
25,203
557,033
-
468,284
6,249,365
99,852
40,788
6,276,053
97,388
23,155
702,779
-
197,240
63,943
6,978,832
3,886,349
- 52 -
(4,658,034)
-
1,606,018
14,195,938
7,217,106
January 1, 2011
USD
Acquisition cost:
Direct acquisitions
Softw are
License
Leased assets
Softw are
License
installation
Jumlah
Direct acquisitions
Softw are
License
Leased assets
Softw are
License
Total
Net carrying value
Additions
USD
Reclassifications
USD
December 31, 2011
USD
446,252
6,049,581
107,628
72,500
-
553,880
6,122,081
392,400
175,042
46,542
-
-
438,942
175,042
7,063,275
2,872,457
3,099,127
-
2,872,457
10,162,402
414,799
5,345,387
28,282
346,945
-
443,081
5,692,332
24,525
7,244
5,791,955
75,327
33,544
484,098
-
99,852
40,788
6,276,053
1,271,320
3,886,349
Intangible assets represent COMPASS ARGA system, and purchase of licenses from Lufthansa Systems
Asia Pasific Pte, Ltd., in relation to the Company’s information technology service, such as Profitline Yield,
Netline Shed, Netline Plan, Profitline Price, Fare Management Systems (FMS), Revenue Management
Systems (RMS), and purchase of oracle license from PT Oracle Indonesia and Internet Booking Engine
(IBE).
Amortization expense for the period ended September 30, 2014 and December 31, 2013, 2012 and 2011
amounted to USD 1,070,865, USD 1,344,912, USD 702,779, and USD 484,098 respectively, which are
presented as network operation expenses.
Software still under installation consists of deferred expenses for the implementation of ERP application.
Management believes that there are no events or changes in circumstances which may indicate impairment
of intangible assets as of reporting date.
There were no intangible assets used as collateral.
17. OTHER ASSETS– NET
September 30,
2014
(Unaudited)
USD
Other receivables - net
P lan assets (No te 28)
M anufacturer's incentive
Other financial assets - available fo r sale
Restricted cash
Security depo sits - no n aircraft
No n pro ductive assets
Security depo sits - ECA (No te 24)
Others
To tal
16,845,588
12,451,779
11,343,387
8,797,130
6,488,920
6,291,186
4,161,124
3,777,233
70,156,347
December 31,
2013
USD
16,845,647
10,722,622
9,039,498
8,800,031
3,876,173
6,486,194
4,161,124
9,845,339
4,053,804
73,830,432
- 53 -
December 31,
2012
USD
16,886,623
9,625,374
5,572,643
9,201,350
2,286,799
6,694,547
4,427,115
9,627,083
4,510,271
68,831,805
January 1,
2012
USD
16,898,590
7,553,118
7,980,258
9,330,470
2,103,157
5,179,104
4,667,323
10,356,409
3,885,565
67,953,994
December 31,
2011
USD
16,967,212
7,553,118
7,980,258
8,188,486
2,103,157
5,179,104
4,595,862
10,356,409
3,818,203
66,741,809
Other receivables – net
The Company has long term receivables from PT Merpati Nusantara Airlines (MNA) which arose from the
maintenance of aircrafts. MNA is an affiliated entity due to government ownership. Based on the agreement
dated March 10, 1999, MNA agreed to settle its payables within 8 years with interest rate of 7% per annum
for receivable denominated in USD and 15% per annum for receivable denominated in Rupiah.
In 2003, the Company’s management and MNA agreed to convert the accounts receivable into Mandatory
Convertible Bonds (MCB) amounting to USD 30,502,683 and Rp 999,003,673, while the remaining balance
of USD 2,770,572 will be settled separately. The Minister of State-Owned Enterprise had approved the
issuance of MCB with a term of 5 years at interest rate of 3% per annum and yield to maturity of 18%.
However, MNA did not agree with several clauses that the Company added in the agreement.
In 2004, MNA has cancelled the MCB process and proposed the conversion into shares. This proposal was
confirmed by the Minister of State-Owned Enterprise (SOE) in his letter No. S-89/MBU/2005 dated
February 25, 2005. In response to the letter, MNA sent a letter to the Minister of State-Owned Enterprise
No. DF-2108/05 dated April 15, 2005 which stated that MNA is still conducting the restructuring program
until year 2010 and during the restructuring program; MNA should comply with the covenants determined
by each creditor in accordance with the commitment stated in the loan restructuring agreement, including
MNA’s investment decision.
In March 2009, the Company and MNA have signed a Memorandum of Understanding where both parties
agreed that MNA will settle its liabilities to the Company of USD 33,273,256 and Rp 999,003,673 in 13
(thirteen) years since the signing of Debt Restructuring Agreement. On February 28, 2012, this
memorandum of understanding has been extended until March 11, 2013. Moreover on January 10, 2012,
the Company received a letter from The Ministry of State Owned Enterprise, which stated that the loan
owed by Merpati to the Company will be rescheduled with installment payment to start by 2016.
On November 18, 2013, the Company and MNA signed a Memorandum of Understanding to reschedule
the term of MOU until March 11, 2014.
On April 7, 2014, the Company entered into Amendment IV to extend the MOU from March 12, 2014 until
March 11, 2015.
On August 14, 2014, the Ministry of SOE approved the assignment of PT Perusahaan Pengelolaan Aset
(Persero) (“PT PPA”) to represent its agency in implementing the restructuring and/or revitalization of
PT MNA wherein PT PPA can start the tender process to attract potential investors with regards to the joint
operation (KSO) and joint cooperation (KSU) between PT MNA and potential investors while waiting
approval from Ministry of Finance.
As of September 30, 2014, the Company has an impairment reserve amounting to USD 16,881,176. The
management believes that the impairment reserve is adequate to cover possible losses on this receivable.
Manufacturer’s Incentive
Movements of manufacturer’s incentive are as follows:
September 30,
2014
(Unaudited)
USD
B eginning balance
A dditio ns
Deductio ns
Ending balance
December 31,
2013
USD
9,039,498
7,008,089
(4,704,200)
11,343,387
5,572,643
31,641,634
(28,174,779)
9,039,498
- 54 -
December 31,
2012
USD
7,980,258
3,642,940
(6,050,555)
5,572,643
January 1,
2012
USD
7,980,258
7,980,258
December 31,
2011
USD
3,512,312
6,301,763
(1,833,817)
7,980,258
Other financial assets - available for sale
Detail of available for sale investments are as follows:
Investments in shares - at co st
P T M erpati Nusantara A irlines
P apas Limited
A bacus Internatio nal Ho ldings Ltd
P T Nusa Dua Graha Internatio nal
P T A rthalo ka Indo nesia
P T B umi M inang P adang P laza
To tal Other Financial A ssets
Do micile
P ercentage o f
Ownership
%
Jakarta
Ho ngko ng
Singapo re
B ali
Jakarta
P adang
4.21
17.65
2.06
8.00
3.00
10.00
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
4,588,112
1,243,019
1,730,948
1,065,732
93,991
75,328
8,797,130
4,588,112
1,243,019
1,730,948
1,067,603
94,168
76,181
8,800,031
4,588,112
1,243,019
1,730,948
1,326,421
118,698
194,152
9,201,350
4,588,112
1,243,019
1,730,948
1,409,765
126,578
232,048
9,330,470
4,588,112
1,397,304
132,243
1,335,515
126,578
608,734
8,188,486
The Group owns shares held primarily for long-term growth potential since such companies are engaged in
the same industry similar to the Group. Those companies are non-listed and there is no readily available
measure of fair value of shares thus the investment is stated at cost.
Non productive assets
Non productive assets consist of Garuda Indonesia Training Center (GITC) building and rotables.
September 30,
2014
(Unaudited)
USD
Net carrying amo unt - befo re impairment
P ro visio n fo r impairment o f assets
Net
The mo vement o f the pro visio n is fo llo ws:
B eginning balance
Net changes fo r the year
Eliminatio n o f deficit quasi-reo rganizatio n
Ending balance
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
4,667,323
(506,199)
4,161,124
4,667,323
(506,199)
4,161,124
4,667,323
(240,208)
4,427,115
4,667,323
4,667,323
19,681,788
(15,085,926)
4,595,862
(506,199)
(506,199)
(240,208)
(265,991)
(506,199)
(240,208)
(240,208)
(15,085,926)
15,085,926
-
(10,339,465)
(4,746,461)
(15,085,926)
Security deposits – non aircraft
This account represents security deposits for branch office buildings and utilities.
Restricted cash
This account represents restricted cash related to several long term loans.
18. LOANS FROM BANKS AND FINANCIAL INSTITUTION
September 30,
2014
(Unaudited)
USD
HSB C
ICB C
Indo nesia Infrastructure Finance
B ank P embangunan Daerah Jawa B arat
dan B anten
To tal
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
18,559,622
14,447,362
6,573,863
5,000,000
40,222,668
5,000,000
5,651,251
-
639,391
-
639,391
-
409,433
44,990,280
45,222,668
5,651,251
639,391
639,391
- 55 -
Bank Negara Indonesia

The Company
On June 28, 2012, the Company obtained credit facility from Bank Negara Indonesia, herein referred to
as Surat Kredit Berdokumen Dalam Negeri (“SKBDN”) Bank Negara Indonesia (“BNI”). Under the credit
facility, the maximum credit limit is USD 15 million.
The purpose of the BNI SKBDN is for purchase of fuel from PT Pertamina (Persero). The Company is
required to maintain deposits or checking account balances with BNI during the 2 working days before
the due date of repayment amounting to the principal amount plus interest.
On April 19, 2013, in accordance with deed No. 16 by Wenda Taurista Anindya, S.H., the maximum
credit has been amended from USD 15 million to USD 40 million with interest rate at 3.5% per annum.
The facility is to be used for jet fuel purchase and operating activities.
The outstanding balance as of September 30, 2014, December 31, 2013, 2012 and 2011 amounted to
USD 17,949,582, USD 39,618,118, USD 4,957,664 and USD nil, respectively.

PT Aerotrans Services Indonesia (ATS)
In November 29, 2012, ATS also obtained Working Capital Loans (KMK) BNI with maximum limit of
Rp 7,500,000,000, effective interest rate of 11% per annum, and with last maturity date on
November 28, 2014. This loan is guaranteed with all ATS’s receivable from GMFAA.
In December 2010, ATS, a subsidiary, obtained Working Capital (KMK) loans with limit of Rp 7.5 billion,
effective interest rate of 11% per annum, maturing on December 13, 2011. This loan is secured by all
ATS’s receivables from GMFAA.
This loan agreement also contains certain covenants which restrict, among other things, without prior
written consent from the banks, to change the composition of the Board of Commissioners and
Directors. This loan was settled on February 7, 2012.
The outstanding balance as of September 30, 2014, December 31, 2013, 2012 and 2011 amounted to
Rp 7,449,809,806 (equivalent to USD 610,040), Rp 7,368,853,033 (equivalent to USD 604,550),
Rp 6,706,994,303 (equivalent to USD 693,587) and Rp 5,863,215 (equivalent to USD 639.391),
respectively.
The Hongkong and Shanghai Banking Corporation Limited (HSBC)
On August 26, 2014, the Company obtained credit facility from HSBC, with maximum credit limit of
USD 20 million.
The purpose of this facility is for fuel payment to Pertamina, payment to maintenance service provider and
payment to airport operator for landing, handling, overflying and route charges (LHOR).
The outstanding balance as of September 30, 2014 amounted to USD 14,447,362.
Industrial Commercial Bank of China (ICBC)
On November 14, 2013, the Company obtained a credit facility in the form of Domestic Letter of Credit
(“SKBDN”) and the Omnibus Sight/Usance/Usance Payable at Sight (UPAS) Letter of Credit (L/C) including
Standby Letter of Credit Line (SBLC). SKBDN and UPAS have a maximum tenor of 90 days and for the
SBLC has a maximum tenor of 12 months. The combined limit of the facility is USD 20,000,000.
The purpose of this credit is to facilitate the working capital needs.
Total outstanding bank loan as of September 30, 2014 amounted to USD 6,573,863.
- 56 -
Indonesia Infrastructure Finance (IIF)

PT Garuda Maintenance Facility Aero Asia (GMFAA)
On December 23, 2013, GMFAA, a subsidiary entered a working capital facility agreement with
PT Indonesia Infrastructure Finance amounting to USD 5,000,000 with interest rate LIBOR 3 months +
margin at 3,5%. This facility is valid for 1 year from the date of signing of the agreement. This loan is
used to finance the development of a new hangar in Batam/Bintan, and/or the procurement of machine
and equipment.
As of September 30, 2014 and December 31, 2013, outstanding balance amounted to USD 5,000,000.
Bank Pembangunan Daerah Jawa Barat Dan Banten

PT Aerotrans Services Indonesia (ATS)
On September 18, 2014, ATS obtained a Working Capital Construction (KMKK) loan facility from Bank
Pembangunan Daerah Jawa Barat Dan Banten (BJB) Rp 5,000,000,000 with an effective interest rate
of 15.5% per year.
The outstanding balance as of September 30, 2014 amounted to Rp 5,000,000,000 (equivalent to
USD 409,433) and subsequently fully paid on November 12, 2014.
19. TRADE ACCOUNTS PAYABLE
a. By Creditor
September 30,
2014
(Unaudited)
USD
P T P ertamina (P ersero )
P T Gapura A ngkasa
P T A ngkasa P ura I (P ersero )
P T A ngkasa P ura II (P ersero )
P T Teleko munikasi Indo nesia
(P ersero ) Tbk
P erum LP P NI
P T A ngkasa P ura So lusi
P T A bacus Internatio nal P te Ltd
P T A ngkasa P ura Lo gistic
Subto tal
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
143,725,925
6,085,402
2,341,164
2,055,509
108,911,066
3,706,367
2,279,948
3,133,425
72,434,320
4,680,787
1,561,545
3,526,065
45,362,233
3,898,096
669,865
2,057,380
45,362,233
3,898,096
669,865
2,057,380
997,118
896,000
25,666
18,493
1,500
156,146,777
694,318
3,568,602
122,293,726
903,361
667,411
83,773,489
137,129
52,124,703
137,129
52,124,703
Third parties
A irline services
Fuel
User charges and statio n
M aintenance and o verhaul
Catering
A irline
A ircrafts leasing
Sub to tal
No n airline services
Subto tal
28,567,085
9,312,666
5,466,176
4,830,800
1,872,531
1,021,635
51,070,893
50,908,707
101,979,600
21,865,753
10,281,904
7,432,440
1,574,181
1,438,306
498,079
43,090,663
40,801,887
83,892,550
15,326,642
6,462,056
7,912,975
1,874,477
1,249,977
61,873
462,284
33,350,284
56,345,858
89,696,142
3,014,943
5,813,526
6,130,051
1,633,377
1,115,993
329,802
105,557
18,143,249
44,893,168
63,036,417
3,014,943
5,813,526
6,130,051
1,633,377
1,115,993
329,802
105,557
18,143,249
44,893,168
63,036,417
To tal
258,126,377
206,186,276
173,469,631
115,161,120
115,161,120
- 57 -
b. By Currency
September 30,
2014
(Unaudited)
USD
Rupiah
U.S. Do llar
Japanese Yen
Singapo re Do llar
A ustralian Do llar
Euro
A rabian Riyal
Ko rean Wo n
Other currencies
To tal
December 31,
2013
USD
137,262,397
101,942,139
3,125,502
2,462,067
1,856,808
1,837,132
1,666,201
5,567
7,968,564
258,126,377
111,253,893
76,983,171
3,444,371
2,847,791
891,930
1,030,500
1,066,898
543,720
8,124,002
206,186,276
December 31,
2012
USD
112,024,897
42,022,833
2,467,767
3,958,654
78,267
2,521,003
2,293,078
2,128,585
5,974,547
173,469,631
January 1,
2012
USD
64,106,755
37,980,274
2,256,196
2,474,681
418,931
2,363,736
1,170,037
261,479
4,129,031
115,161,120
December 31,
2011
USD
64,106,755
37,980,274
2,256,196
2,474,681
418,931
2,363,736
1,170,037
261,479
4,129,031
115,161,120
20. OTHER PAYABLES
September 30,
2014
(Unaudited)
USD
Fo reign airpo rt retributio n
Derivative liability (No te 47)
Insurance and healthcare
P assenger ticket insurance
Others
To tal
December 31,
2013
USD
18,568,824
2,418,027
897,768
475,504
3,203,525
25,563,648
13,374,631
56,208
677,884
2,163,163
16,271,886
December 31,
2012
USD
12,307,071
134,503
1,766,890
2,461,079
16,669,543
January 1,
2012
USD
21,522,777
2,778
2,062,427
2,962,384
26,550,366
December 31,
2011
USD
21,522,777
2,778
2,062,427
2,962,384
26,550,366
21. ACCRUED EXPENSES
September 30,
2014
(Unaudited)
USD
User charges and statio n
Ticketing sales and pro mo tio n
Interest
P assenger services
Flight o peratio ns
Hangar IV co nstructio n
Others
To tal
53,829,254
26,356,759
23,285,141
21,652,365
9,720,927
7,774,237
6,889,114
2,433,522
6,410,752
158,352,071
December 31,
2013
USD
December 31,
2012
USD
56,701,745
19,969,586
25,210,421
17,634,954
5,560,750
5,743,449
18,357,595
3,790,416
7,998,165
160,967,081
72,446,326
26,779,234
30,652,214
10,049,695
2,349,056
5,876,600
10,571,908
10,543,132
169,268,165
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
64,257,871
26,104,317
22,630,639
11,839,673
1,523,562
3,650,401
23,544,255
5,841,938
159,392,656
December 31,
2011
USD
64,257,871
26,104,317
22,630,639
11,839,673
1,523,562
3,650,401
23,544,255
5,841,938
159,392,656
22. UNEARNED REVENUES
September 30,
2014
(Unaudited)
USD
Traffic scheduled flight
Others
To tal
197,634,719
1,106,264
198,740,983
168,012,509
1,252,887
169,265,396
- 58 -
160,582,183
1,688,395
162,270,578
January 1,
2012
USD
152,982,881
5,880,006
158,862,887
December 31,
2011
USD
152,982,881
5,880,006
158,862,887
23. LONG-TERM LOANS
Details of long-term loans at September 30, 2014, December 31, 2013, 2012 and 2011 net of unamortized
transaction cost.
September 30,
2014
(Unaudited)
USD
Related P arties (No te 45)
Indo nesia Eximbank
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
56,915,203
40,775,313
30,288,430
28,758,327
13,473,346
4,841,873
42,803,615
40,198,427
43,137,490
16,104,859
5,798,472
14,885,592
100,000,000
57,516,654
16,104,859
7,308,953
6,244,064
40,000,000
57,516,654
18,210,069
8,813,021
6,244,064
40,000,000
57,516,654
18,210,069
8,813,021
175,052,492
148,042,863
195,816,058
130,783,808
130,783,808
196,589,297
113,198,728
99,375,000
83,576,959
74,704,898
69,864,394
73,488,690
74,105,017
69,591,334
-
-
-
15,992,273
1,265,436
3,686,071
370,430
52,646
19,899
-
30,418,159
3,385,111
4,542,238
1,099,859
53,409
119,708,057
44,719,965
6,495,698
5,880,542
2,890,818
168,483
27,319,373
117,635,644
59,120,601
9,157,320
7,590,286
4,010,172
53,949,497
-
59,120,601
9,157,320
7,590,286
4,010,172
53,949,497
-
-
45,640,043
34,620,710
-
-
-
-
-
20,909
-
60,110
1,541,375
60,110
1,541,375
Sub to tal
658,696,031
456,652,628
205,131,432
135,429,361
135,429,361
To tal lo ng term liabilities
833,748,523
604,695,491
400,947,490
266,213,169
266,213,169
Less current maturities
255,646,282
280,075,641
106,125,048
80,354,353
80,354,353
Lo ng term lo an po rtio n
578,102,241
324,619,850
294,822,442
185,858,816
185,858,816
Sub jumlah
Third P arties
B CA Club Deal - Syndicated lo an
SCB & Emirates NB D P JSC - Syndicated lo an
P T B ank Internatio nal Indo nesia Tbk
Emirates NB D P JSC - M urabahah Financing
B ank P an Indo nesia
B ank P ermata
Flo ating Rate No tes
U.S. Do llar
Rupiah
B ank CIM B Niaga
P T M andiri Tunas Finance
P T Tirta Finance
B ringin Indo tama Sejatera
Syndicated lo an I
Syndicated lo an II
Syndicated lo an III
U.S Do llar
Rupiah
St.Geo rge B ank A ustralia and Natio nal A ustralia
B ank Limited
B ank Jabar B anten
The amortized cost of the long-term loans is as follows:
September 30,
2014
(Unaudited)
USD
Lo ng-term lo an
A ccrued interest expense
To tal
833,748,523
5,271,576
839,020,099
December 31,
2013
USD
604,695,491
1,290,965
605,986,456
December 31,
2012
USD
400,947,490
1,799,548
402,747,038
January 1
2012
USD
266,213,169
1,523,562
267,736,731
December 31,
2011
USD
266,213,169
1,523,562
267,736,731
The average interest rate are as follows:
U.S. Do llar
Rupiah
September 30,
2014
(Unaudited)
December 31,
2013
December 31,
2012
January 1
2012
December 31,
2011
0.900% - .5,000%
6.500% - 15.980%
1.159% - 4.750%
6.500% - 11.152%
1.325% - 5.173%
6.500% - 7.580%
1.325% - 5.500%
6.500% - 20.750%
1.325% - 5.500%
6.500% - 20.750%
- 59 -
Payment details as of September 30, 2014, December 31, 2013, 2012 and 2011 are as follows:
September 30,
2014
(Unaudited)
USD
Syndicated Lo an II
Syndicated Lo an III
U.S. Do llar
Rupiah
Flo ating Rate No tes
U.S. Do llar
Rupiah
B ank CIM B Niaga
P T M andiri Tunas Finance
B ringin Indo tama Sejatera
Syndicated Lo an I
Indo nesia Eximbank
B ank Jabar B anten
St. Geo rge B ank A ustralia and Natio nal
A ustralia B ank Limited
To tal
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
120,000,000
-
-
-
-
46,000,000
36,898,337
10,000,000
14,379,163
1,558,143
14,379,163
-
-
14,379,163
9,437,245
1,449,251
2,863,152
2,631,513
944,673
721,375
568,338
22,757
-
14,545,479
2,209,363
2,731,464
2,258,280
1,566,474
39,642
27,500,000
100,000,000
-
14,545,479
2,055,198
1,843,689
2,105,210
921,586
3,135,001
1,486,029
38,382
27,500,000
15,000,000
1,541,375
-
10,216,467
1,516,482
513,880
1,578,908
758,530
1,060,794
-
245,915,804
21,043
166,809,051
39,200
70,211,149
-
30,024,224
PT Bank Negara Indonesia
a. GMFAA
On March 31, 2010, GMFAA, a subsidiary, obtained a Rp 100 billion credit facility which will mature on
December 30, 2015 and subject to floating interest rate from Bank Negara Indonesia. The term of credit
facility is 5 years and 9 months, the purpose of which is for business development financing of new
facilities and infrastructure and also for the procurement of machine and equipment in the amount of
52.32% of the value of asset financed. This credit facility is secured by assets financed by the facility.
On June 25, 2012, GMFAA obtained an additional investment credit facility with maximum amount of
Rp 55 billion, due on May 25, 2018 at floating interest rate. The facility has a term of 6 years and is
intended to finance the capability development and increased capacity for aircraft maintenance.
On May 31, 2013, GMFAA obtained additional investment credit facility with maximum plafond of
Rp 490 billion and USD 6 million, due on November 30, 2025 at floating interest rate from Bank Negara
Indonesia. The facility has a term of 12 years and intended to finance the building of hangar IV and
hangar equipment. The loan facility is secured with assets financed by this facility.
th
Interest is payable on the 25 of each month starting in June 2013. The loan principal of this facility is
payable in quarterly installment of Rp 11,112,500,000 starting on August 25, 2014.
The major covenant of this facility include the following:
a. Minimum Current ratio is 1 time,
b. Debt to equity ratio is maximum of 2.5 times,
c. Debt service coverage ratio is minimum of 100%.
On September 30, 2014, GMFAA has met the financial ratio requirement based on the agreement.
- 60 -
As of September 30, 2014, December 31, 2013, 2012 and 2011, outstanding balance amounted to
Rp 578,466,181,187 (equivalent to USD 47,368,669), Rp 403,285,640,026 (equivalent to
USD 33,086,032), Rp 103,912,736,960 (equivalent to USD 10,745,888) and Rp 56,621,172,352
(equivalent to USD 6,244,064), respectively.
b. PT Aerofood Indonesia (ACS)
On June 20, 2012, ACS, a subsidiary, obtained loan from Bank Negara Indonesia with maximum credit
of Rp 110 billion and will be due on June 19, 2018. This loan is used for project development of kitchen
facilities in Denpasar, Medan and Balikpapan. The loan is secured by fiduciary right over the related
kitchen facility.
As of September 30, 2014, December 31, 2013 and 2012, the outstanding balance of the loan
amounted to Rp 84,341,069,918 (equivalent to USD 6,906,409), Rp 90,302,457,964 (equivalent to
USD 7,408,521) and Rp 40,030,930,664 (equivalent to USD 4,139,704), respectively.
c.
PT Aero Wisata (AWS)
In March 2013, AWS, a subsidiary, obtained 3 facility loan from Bank Negara Indonesia with maximum
credit amount of Rp 18 billion, Rp 7 billion and Rp 25 billion and maturity date on March 3, 2021,
September 2, 2022 and April 18, 2015, respectively. The loan is used to finance the renovation of Hotel
Grand Preanger, Hotel Tastaru, Hotel Mandalika and for working capital their subsidiary.
The major covenants of these loan facilities include the following:



Minimum current ratio is 1 time,
Maximum debt to equity ratio is maximum of 2.1 times,
Debt service coverage ratio is no less than 100%.
As of September 30, 2014 and December 31, 2013 the outstanding balance of the loan amounted to
Rp 32,241,205,298 (equivalent to USD 2,640,125) and Rp 28,145,161,200 (equivalent to
USD 2,309,062), respectively.
Indonesia Eximbank
On February 12, 2010, the Company signed a Credit Agreement for Financing Tranche A with a credit limit
of USD 15 million due in 2 years and interest rate of LIBOR (6 months) + 3.5% per year. The LIBOR rate
will be reviewed every 6 months. This loan is used to finance and refinance the Pre-Delivery Payment
(PDP) for Boeing 737-800 NG aircraft, which is already subject to financing commitment through sale and
leaseback agreement with a lessor company and this loan was collateralized with the Company’s shares in
GMFAA, a subsidiary.
The credit agreement was amended on October 29, 2010 and again on June 28, 2011, by adding a PDP for
Boeing B777-300 ER and Tranche B financing facility with a plafond of USD 27 million; thus the total facility
limit was increased to USD 42 million. On February 10, 2012, the facilities were amended to transactional
working capital facilities (KMK) with a plafond of USD 42 million due in 4 years. Furthermore, on August 15,
2012, the Company and Indonesia Eximbank approved to amend the maximum plafond from USD 42
million to USD 25 million.
On August 15, 2012, the Company and Indonesia Eximbank signed a credit agreement with a total value of
USD 75 million which is divided into two tranches: tranche A with credit limit of USD 25 million and tranche
B with credit limit of USD 50 million used for the payment of pre-delivery payment (PDP) of the entire
aircrafts purchases from Boeing, Airbus, Embraer and Bombardier which are covered by financing
commitments in the form of sale and leaseback agreement with the lessor. The term of this agreement was
24 months from the signing of the agreement. Interest payments are made every 3 months.
The loan was collateralized by a deed of pledge over the Company’s shares in GMFAA, a subsidiary, for
USD 100 million and was fully repaid on August 14, 2014.
- 61 -
On April 28, 2014, the Company entered into a long-term loan facility agreement with Exim Bank Indonesia.
These facilities granted to the Company of Rp 500 billion with a term of 36 months designated as working
capital. Interests are payable quarterly. Principal installment will begin 12 months after the date of the
agreement; payable quarterly. The entire loan facilities availed by the Company on May 9, 2014. No
Collateral for this loan facility.
The outstanding loan at September 30, 2014, December 31, 2013, 2012 and 2011 amounted to
USD 40,775,313, nil, USD 100,000,000 and USD 40,000,000, respectively.
Bank Rakyat Indonesia
a. The Company
On May 29, 2013, the Company has signed a Credit Facility with PT Bank Rakyat Indonesia (Persero)
Tbk with a total facility of USD 40,000,000 and term of 24 months. This facility was used for general
purposes including pre-delivery financing of aircraft purchases in 2013.
As of September 30, 2014, the Company complied with the financial covenant stipulated in the
agreement. Major covenant of the agreement includes, among other the debt-to-equity ratio not to
exceed 5 times.
As of September 30, 2014 and December 31, 2013, the outstanding loan amounted to USD 29,960,883
and USD 39,870,262, respectively.
b. PT Aerofood Indonesia ACS
ACS, a subsidiary of AWS, obtained working capital and interchangeable with bank guarantee from
Bank Rakyat Indonesia with maximum plafond of Rp 40 billion. Agreement on these loans facility has
several changes and the last changes relates to the extension of the credit facility period be July 1,
2014 until July 1, 2015. This loan is secured by inventory and account receivables of ACS.
The outstanding balance on September 30, 2014 and December 31, 2013, the outstanding balance of
the loan amounted to Rp 4 billion (equivalent to USD 327,547) and Rp 4 billion (equivalent to
USD 328,165), respectively.
PT Pertamina (Persero)
Based on agreement dated October 19, 2009, PT Pertamina (Persero) agreed to convert the Company’s
trade payable for fuel purchase transactions amounting to USD 76,484,911 into a long-term loan payable
with installment terms. This loan is due on December 31, 2015.
As of September 30, 2014, December 31, 2013, 2012, and 2011, outstanding loan balance amounted to
USD 28,758,327, USD 43,137,490, USD 57,516,654 and USD 57,516,654, respectively.
PT Angkasa Pura II (Persero)
Based on agreement dated May 27, 2009, PT Angkasa Pura II (Persero) agreed to convert the Company’s
trade payable of Rp 195,910,872,304 or equivalent to USD 21,052,103 into a long-term loan payable with
installment terms. This loan will fall due on December 30, 2015. As of September 30, 2014, December 31,
2013, 2012 and 2011, the outstanding loan balance amounted to USD 13,473,346, USD 16,104,859,
USD 16,104,859 and USD 18,210,069, respectively.
- 62 -
PT Angkasa Pura I (Persero)
Based on agreement dated May 27, 2009, PT Angkasa Pura I (Persero) agreed to convert the Company’s
trade payable amounting to Rp 91,465,097,646 or equivalent to USD 8,872,465 into a long-term loan
payable with installment terms. This loan will fall due on December 30, 2015. As of September 30, 2014,
December 31, 2013, 2012 and 2011, the outstanding loan balance amounted to Rp 59,128,953,076
(equivalent to USD 4,841,873), Rp 70,677,575,510 (equivalent to USD 5,798,472), Rp 70,677,575,510
(equivalent to USD 7,308,953) and Rp 79,916,474,428 (equivalent to USD 8,813,012), respectively.
BCA Club Deal – Syndicated Loan
On December 2, 2013, the Company entered into a Syndicated Loan Agreement facilitated by PT Bank
Central Asia, Tbk., and in circular with five banks:
-
Lembaga Pembiayaan Ekspor Indonesia
PT Bank Central Asia, Tbk
PT Bank Internasional Indonesia Tbk
PT Bank CTBC Indonesia
Bank of China Limited
The syndicated loan facility amounted to USD 100 million and Rp 1,193,000,000,000 for general purpose of
the Company.
The loan has a term of 36 (thirty six) months and the final installment of the loan will due on December 2,
2016. The principal will be repaid every 3 (three) months starting from 12 (twelve) months from after the
signing date.
The loan is secured by an interest reserve account in which the balance is to be keep sufficient for 3 (three)
months of interest payments. The account is held with PT Bank Central Asia, Tbk as the Facility Agent as
well as the Security Agent.
On December 31, 2013, the Company made the first draw down which amounted to USD 75 million and in
2014 made total draw down amounting to USD 25 million and Rp1,193,000,000,000.
The major covenants include maintaining certain financial covenants as follow:



Debt ratio not to exceed 5.75 times,
Coverage ratio not less than 1.00 time,
The minimum cash percentage of the Group shall not be less than 5.00%.
As of September 30, 2014, the Group has exceeded the financial covenants in the agreement, however the
Group has received the waiver from the facility agent in relation with noncompliance of financial covenants.
The facility agent agreed that exceeding the limit of such financial covenants do not make the loan to
become immediately due and payable.
As of September 30, 2014 and December 31, 2013 the outstanding loan amounted to USD 196,589,297
and USD 73,488,690, respectively.
SCB & Emirates NBD PJSC
On April 15, 2014, the Company entered into a long-term syndicated loan facility with Standard Chartered
Bank and Emirates NBD PJSC. These facilities granted the Company total maximum credit of USD 200
million with term of 36 months and designated for working capital purposes. Principal and interest payments
is made every 3 (three) months, with the first payment due on 15 (fifteen) months after the date of the
agreement. The loan facilities were availed by the Company in stages, total draw down in 2014 amounted
to USD 200,000,000. The collateral for this loan is a reverse interest placement for three (3) months, which
is classified as restricted cash balance (Note 17).
- 63 -
Major covenants include maintaining certain financial ratios as follow:



Debt ratio not to exceed 6 times,
Coverage ratio not less than 1 time,
The minimum cash percentage shall not be less than 5% of total operating revenues.
As of September 30, 2014, the Group has exceeded the financial covenants in the agreement, however the
Group has received the waiver from the facility agent in relation with noncompliance of financial covenants.
The facility agent agreed that exceeding the limit of such financial covenants do not make the loan to
become immediately due and payable.
As of September 30, 2014 the outstanding loan amounted to USD 113,198,728.
PT Bank International Indonesia Tbk (BII)
On March 27, 2014, the Company entered into a partnership with BII to finance business of Hajj and
Umroh, wherein each party contributed funds amounting to USD 1,000,000 and USD 100,000,000. BII as a
passive partner will get earnings ratio based on activities related to Hajj and Umroh or other types of
businesses that are determined later by agreement of the Parties (revenue sharing). Partnership for Hajj
and Umroh was conducted after the date of this Facility Line Agreement was signed and will expire on
March 27, 2017. The Company must meet the following financial covenants calculated on the basis of
twelve (12) months:



Group maximum debt ratio of 7 times;
Group minimum cash percentage for 12 months period should not be less than 5% of revenues;
Group minimum coverage ratio of 1 time.
The outstanding balance of this agreement as of September 30, 2014 amounted to USD 99,375,000.
Emirates NBD PJSC – Murabahah Financing
On July 17, 2014, the Company entered into murabahah financing amounting to USD 85,000,000 with
Emirates NBD PJSC. The parties agreed to the sale and purchase agreement for contract services of
Available Seat Kilometers (ASK). The right to sell ASK is effective over 36 months, with costs per ASK of
USD 0.0681 and total saleable ASK rights of 1,248,164,464.
In relation to the financing agreement, the Company in return acts as the exclusive representative of
Emirates NBD Bank PJSC to sell the relevant rights to ASK to third parties (Wakalah agreement).
The outstanding balance of murabahah financing as of September 30, 2014 amounted USD 83,576,959.
PT Bank Pan Indonesia Tbk
On August 2, 2013, the Company entered into a commercial loan agreement with PT Bank Pan Indonesia
Tbk. The loan facility amounted to USD 75 million with term of 36 months.
The outstanding loan as of September 30, 2014 and December 31, 2013 amounted to USD 74,704,898 and
USD 74,105,017, respectively.
PT Bank Permata Tbk
On February 18, 2013, the Company entered into a commercial loan agreement with PT Bank Permata
Tbk. The loan facility amounted to USD 70 million with term of 24 month. The loan principal will be paid on
the 24th month which is on February 18, 2015.
The outstanding loan as of September 30, 2014 and December 31, 2013 amounted to USD 69,864,394 and
- 64 -
Floating Rate Notes
The Company issued Floating Rate Notes payable (FRN) in U.S. Dollar and Rupiah currencies. The Chase
Manhattan Bank - London Branch acted as Trustee in the issuance of the FRN. The FRN matured in 2007.
Based on deed of changes and buyback agreement dated January 21, 2010, the remaining unsettled FRN
which amounted to USD 75 million and Rp 108 billion respectively, was restructured and will be due in
2018.
Outstanding balance of FRN at September 30, 2014 amounted to USD 15,992,273 and Rp 15,453,504,432
(equivalent to USD 1,265,436), December 31, 2013 amounted to USD 30,418,159 and Rp 41,261,123,098
(equivalent to USD 3,385,111), at December 31, 2012 amounted to USD 44,719,965 and
Rp 62,813,399,660 (equivalent to USD 6,495,698) and December 31, 2011 amounted to USD 59,120,601
and Rp 83,038,577,760 (equivalent to USD 9,157,320).
Bank CIMB Niaga
a. PT Aerowisata (AWS)
On October 6, 2009, AWS, a subsidiary, obtained on investment credit loan facility from Bank CIMB
Niaga with maximum credit of Rp 20 billion. The loan is used to finance the renovation of Irian Biak
Hotel. The term of the loan is 8 years, which includes a grace period of 18 months and will mature on
October 6, 2017. The loan is secured by three landright certificates on the land area where the hotel is
located (Note 14).
As of September 31, 2014, December 31, 2013, 2012 and 2011, outstanding loan balance amounted
Rp 7,306,923,104 (equivalent to USD 598,340), Rp 9,499,000,022 (equivalent to USD 779,309),
Rp 12,421,769,246 (equivalent to USD 1,284,568) and Rp 16,120,749,168 (equivalent to
USD 1,757,988) respectively.
b. PT Aerotrans Service (ATS)
ATS, a subsidiary of AWS, obtained investment loan facility from Bank CIMB Niaga to finance the
purchase of new vehicle for operations with term of 3 to 4 years per annum.
Such loan agreement includes certain terms and conditions that restrict ATS to distribute dividends and
change its organizational structure without written notification to the bank.
ATS obtained a loan facility to be used as bridging financing for liquidity gap arising from investment
activities. This loan has a maximum term of one year or the period of leased agreement whichever is
shorter, with interest rate per annum at 1.25% plus the interest rate of time deposits guaranteed by the
government. This loan is secured by time deposit.
On June 24, 2010, ATS restructured its loan. The agreed restructured terms are as follows:
a. Reduce interest rate from 13% - 16% per annum to 11% - 12.25% per annum.
b. Change in allocation of loan facility as follows:
 Investment loan transaction (PTK) No. 2 and partial Novation from fixed back to back loan
amount of Rp 7 billion was combined into PTK investment No. 5.
 PTK investment No. 3 and partial Novation from fixed back to back loan amount of Rp 4 billion
was combined into PTK investment No. 6.
These facilities have a term of 36 months to 42 months.
- 65 -
The restructured loan is secured by related vehicles purchased with a minimum amount of
Rp 175,124,150,000, accounts receivable from rental of vehicles with minimum amount of
Rp 10,504,404,158 and opening of escrow account and a comfort letter from PT Aerowisata.
As of September 30, 2014, December 31, 2013, 2012 and 2011, outstanding loan balances amounted
Rp 37,707,370,726 (equivalent to USD 3,087,731), Rp 40,199,683,876 (equivalent with
USD 3,298,030), Rp 36,776,406,852 (equivalent to USD 3,803,144) and Rp 43,815,506,744
(equivalent to USD 4,778,136), respectively.
c.
PT Aerofoods Indonesia (ACS)
On October 2011, ACS, a subsidiary of AWS, obtained loan from CIMB Niaga with maximum limit of 10
billion which maturity date on October 24, 2016. The loan is pledged by fiduciary right of Hi Lift Truck
amounting to Rp 12.5 billion.
As at September 30, 2014, the outstanding loan, has been settle and as of December 31, 2013, 2012
and 2011, oustanding loan balance amounted to Rp 5,666,666,673 (equivalent to USD 464,900),
Rp 7,666,666,665 (equivalent to USD 792,830) and Rp 9,666,666,666 (equivalent to USD 1,054,162),
respectively.
PT Mandiri Tunas Finance
This loan was obtained by ATS, a subsidiary of AWS, for the purchase of vehicles with term of 36 months.
This loan is secured by the financed vehicles.
As of September 31, 2014, December 31, 2013, 2012 and 2011, the outstanding loan balance amounted to
Rp 4,523,691,160 (equivalent to USD 370,430), Rp 13,406,183,732 (equivalent to USD 1,099,859),
Rp 27,954,210,586 (equivalent to USD 2,890,818) and Rp 36,364,239,696 (equivalent to USD 4,010,172),
respectively.
PT Tirta Finance
On October 24, 2013, ATS entered into purchase financing with PT Tirta Finance for the purchase of GPS.
The finance lease has a term of 4 years and fixed interest rate of 15.98% per annum.
On December 9, 2014, the finance lease term has been amended to become 1.5 years. The outstanding
balance of this loan as of September 30, 2014 amounted to Rp 642,912,952 (equivalent to USD 52,646).
Bringin Indotama Sejahtera
In 2012, ATS entered into vehicle purchase financing with Bringin Indotama Sejahtera for the purchase of
vehicles. The finance lease has a term of 3 years and a fixed interest rate of 12.25% per annum.
The outstanding balance of this loan as of September 30, 2014, December 31, 2013 and 2012 amounted to
Rp 243,006,588 (equivalent to USD 19,899), Rp 651,008,040 (equivalent to USD 53,409),
Rp 1,629,233,440 (equivalent to USD 168,483), respectively.
- 66 -
Syndicated Loan I
On June 24, 2011, the Company entered into a syndicated loan agreement, circularly with seven banks:
Citibank, UBS AG, PT Bank Central Asia, PT Bank ICBC Indonesia, PT Bank International Indonesia,
PT Bank Permata Tbk and Bank of China Limited. Maximum credit facility is USD 55 million with term of 24
months. Principal payments will be made at month 15, 18, 21 and 24 by the same amount, amounting to
USD 13.75 million. This facility is used for general purposes. The loan is secured by 3 months of interest
payments that are deposited on a Company’s account in Citibank (interest reserve account). The balance of
this collateral will be adjusted for fluctuations of 1-month LIBOR and will not be taken until the loan is
settled. The Company has used all the facility as of December 31, 2011 with details as follow:
Total
USD
Facility agents
Citibank N.A., Jakarta Branch
PT Bank Central Asia
PT Bank ICBC Indonesia
PT Bank International Indonesia Tbk
PT Bank Permata Tbk
Bank of China Limited, Jakarta branch
Total
8,500,000
8,500,000
8,500,000
17,000,000
8,500,000
4,000,000
55,000,000
The commitment value of PT Bank International Indonesia Tbk (BII) of USD 17 million consists of two
banks, i.e. BII and UBS AG, Singapore Branch amounting to USD 8.5 million, respectively. The Company
does not have permission for PKLN (Persetujuan Kredit Luar Negeri) from the Ministry of SOEs, thus UBS
AG, Singapore branch can not provide loans directly to the Company and used BII as front.
The major covenants of the agreement include the following:
 Coverage ratio not less than 1.05 times,
 Debt ratio not to exceed 5.75 times,
 The minimum cash percentage of the Group shall not be less than 5 percent.
In 2013, all the outstanding loan has been settled while at December 31, 2012 and 2011, the outstanding
loan amounted to USD 27,319,373 and USD 53,949,497, respectively.
Syndicated loan II
On November 6, 2012, the Company entered into a Syndicated Loan Facility which was facilitated by
Citicorp International Limited and circularly with eight banks: Citigroup Global Markets Singapore Pte Ltd,
PT Bank Panin Tbk, PT Bank ICBC Indonesia, First Gulf Bank PJSC, Singapore Branch, Korea
Development Bank, KDB Asia Limited, Standard Chartered Bank, Jakarta Branch and Bank of China
Limited, Jakarta Branch. The maximum credit facility is USD 120 million with term of 24 months. Principal
payments will be made at month 15, 18, 21 and 24 by the same amount of USD 30 million. This facility is
used for general purposes. The loan was secured by an interest reserve account for three (3) months
interest payments.
- 67 -
The Company has used all the facility as of December 31, 2012 with details as follow:
Total
USD
Facility agents
Citigroup Global Markets Singapore Pte Ltd
PT Bank Pan Indonesia Tbk
PT Bank ICBC Indonesia
First Gulf Bank PJSC, Singapore Branch
Korea Development Bank *)
Standard Chartered Bank, Jakarta Branch
Bank of China Limited, Jakarta branch
Total
15,000,000
25,000,000
24,000,000
20,000,000
15,000,000
15,000,000
6,000,000
120,000,000
*) USD 15,000,000 commitment to be split between Korea Development Bank and KDB Asia Limited
The major covenants of the agreement include the following:
 Coverage ratio not less than 1.05 times,
 Debt ratio not to exceed 5.75 times,
 The minimum cash percentage of the Group shall not be less than 5 percent.
As at September 30, 2014, the outstanding loan has been settled while as of December 31, 2013 and 2012,
the outstanding loan amounted to USD 119,708,057 and USD 117,635,644, respectively.
Syndicated Loan III
On February 21, 2013, the Company entered into a USD 90 million syndicated loan III facilitated by
Citibank. The syndicated loan III is upsizing the loan facility of syndicated loan II. This syndicated loan is
raised from four banks, namely: PT Bank Pan Indonesia Tbk amounting to USD 20 million and
Rp 213,378,000,000 (equivalent to USD 24 million), PT Bank ICBC Indonesia amounting to USD 6 million,
PT Bank Central Asia Tbk amounting to Rp 213,378,000,000 (equivalent to USD 24 million), and Emirates
NBD PJSC, Singapore Branch for USD 20 million.
The loan has a term of 24 months from November 7, 2012 with principal payments at month 15, 18, 21
and 24.
As at September 30, 2014, the outstanding loan has been settled while as of December 31, 2013 the
outstanding loan amounted to USD 45,640,043 for Syndicated loan III in U.S Dollar currency and
Rp 421,991,834,190 (equivalent to USD 34,620,710) for syndicated loan III in Rupiah.
St. George Bank Australia and National Australia Bank Limited
In September 2008, GOH Australia, a subsidiary of AWS, obtained financing for leased vehicles from
St. George Bank, Australia for period of 4 years and which was settled on August 2012.
On August 9, 2010, GOH Australia, a subsidiary of AWS, obtained financing for leased of assets from
National Australia Bank Limited. The term of finance lease is 3 years and was settled on July 9, 2013.
As at December 31, 2013, the outstanding loan has been settled. As of December 2012 and 2011 the
outstanding loan amounted to USD 20,909 and USD 60,110, respectively.
- 68 -
Bank Jabar Banten
On May 12, 2011, PT Bina Inti Dinamika (BID), a subsidiary of AWS, obtained a loan facility from Bank
Jabar Banten with maximum credit of Rp 22.5 billion. This loan is used as additional working capital for
operations.
The loan is collateralized by land certificate (HGB) No. 352 located at Sumur, Bandung.
As of December 31, 2012, the loan has been settled. As of December 31, 2011, the outstanding loan
amounted to Rp 13,977,190,882 or equivalent to USD 1,541,375.
24. LEASE LIABILITIES
The Group entered into lease transaction for the lease of aircraft Airbus type A-330 which were financed by
Lloyd (ECA), with lease period of 1996 – 2016 and Export Development Canada (EDC) for lease of aircraft
CRJ1000 with lease period of 2012 – 2022.
The Group also entered into lease agreement with PT Hewlett-Packard Finance Indonesia and PT Century
Tokyo Leasing Indonesia for the lease of software and hardware with lease period of 3 years.
The minimum lease payments based on the lease agreements are as follows:
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
Within o ne year
Over o ne year but no t lo nger than five years
Over five years
To tal future lease payment
Less future finance charges
P resent value o f minimum lease payments
17,425,219
65,959,519
60,121,061
143,505,799
21,267,071
122,238,729
58,814,443
98,416,610
58,290,805
215,521,858
23,770,914
191,750,944
65,127,902
123,360,688
41,545,655
230,034,245
23,681,647
206,352,598
60,157,169
146,104,523
206,261,692
12,001,983
194,259,709
60,157,169
146,104,523
206,261,692
12,001,983
194,259,709
P resented in co nso lidated statement o f financial
po sitio n as:
Current maturities
No n current maturities
To tal
12,985,825
109,252,904
122,238,729
53,268,680
138,482,264
191,750,944
58,132,590
148,220,008
206,352,598
54,552,395
139,707,314
194,259,709
54,552,395
139,707,314
194,259,709
Export Credit Agency (ECA)
On December 21, 2010, the Company completed the restructuring of the ECA debt. The restructuring
clarified the following matters:

The outstanding ECA debt balance as of December 21, 2010 consisting of debt to Commercial Lenders
amounting to USD 78,782,738 and ECA amounting to USD 175,461,456 was rescheduled and will due
every month until December 2016. The interest rate on the ECA loan is LIBOR + 0.9/0.95%, while the
interest rate on loans to Commercial Lenders is LIBOR + 1.75%. The debt with ECA and Commercial
Lenders is secured by 6 (six) Airbus A330-300 aircrafts and three 3 (three) Rolls Royce model Trent
768 engines. Additional collateral for a portion of ECA debt (Tranche A and B1) amounting to USD 50
million is 7 Boeing 737-400 aircrafts. All collateral has been released based on Deed of Release dated
March 2, 2011.

On December 21, 2010, the Company repurchased USD 15,546,270 of its loan through reverse dutch
auction process, for USD 11 million, generating a gain of USD 4,546,270.
- 69 -
The major covenants in the finance lease agreement include the following:

The Company will not, and will ensure that no companies in the Garuda group, have any financial
liabilities except for:
-
Financial liabilities arising from this agreement, supplementary rental agreements, other rental
documents, and liabilities to creditors already existing on the effective date and disclosed in the
Deed Poll.
-
Financial liabilities incurred from operating leases in which the lessee is a company in the Garuda
group.
-
From the effective date of the agreement until June 30, 2011, the total financial liabilities incurred
by the companies in the Garuda group may not exceed USD 80 million, thereafter (starting from
July 1, 2011) until the termination of the agreement such restriction has been waived.
-
Garuda group shall meet the financial covenant restrictions required in the agreement, such as:




Coverage ratio not less than 1.3 times,
Debt ratio not to exceed 5 times,
For the years 2010 – 2016 the maximum capital expenditure each year shall be 2.5% of the
total operating revenue.
The Company also agreed to settle the above-mentioned loans to the creditors using the excess cash
of the Company as stipulated in the Cash Sweep Deed of Covenant.
In the ECA debt restructuring agreement, there is a negative covenant that does not allow the Company to
pay or announce any dividend or other distribution, except:
a) The dividend does not exceed: (i) 10% of the distributable profit for such financial year prior to an IPO
or (ii) 50% of the distributable profit for such financial year after an IPO.
b) Dividend is distributed if the Company has excess cash in the year concerned as defined in the
agreement.
c) It is allowed by law for the Company to make payment or announcement.
d) There is no outstanding balance that has fallen due and has not been paid for any rental agreement
and no other balances that have fallen due and not been paid for other debt borrowings.
e) There are no occurrences relating to continuing inability to pay.
On December 15, 2010, the Company has paid the tax security deposit for Tranche A and security deposit
for Tranche B, of EUR 7 million and EUR 1 million, respectively, as one of the conditions to be met by the
Company in the ECA debt restructuring process (Note 17).
At December 31, 2013, the Company’s coverage ratio is 1.13 and debt ratio is 6.28 times. Management has
reviewed the terms of the ECA agreement and concluded that exceeding the limit of such financial
covenant does not make the loan to become immediately due and payable.
On June 19, 2014, the Company signed the termination agreement relating to six (6) Airbus A330-300
aircraft with manufacturer serial No. 138, 140, 144, 148, 153 and 165. Based on this agreement, within two
(2) banking days prior termination date, the Company shall pay the creditor the amount of USD 62,480,833
consisting of principal payment of USD 62,121,518 and interest payment of USD 359,315. The additional
cost related to the termination amounted to USD 119,178.
On June 30, 2014, the security deposit and maintenance reserve fund related ECA has been released
together with the six Airbus A330-300 aircraft with manufacturer serial No. 138, 140, 144, 148, 153 and 165
which were reclassified as owned aircraft (Note 14).
- 70 -
As of September 30, 2014 and December 31, 2013, 2012 and 2011, the outstanding balance of ECA finance
lease obligation amounted to nil, USD 83,743,135, USD 137,089,080 and USD 192,161,467, respectively.
Export Development Canada (EDC)
On July 27, 2012, the Company obtained financing from EDC facility related to CRJ1000 Next-Generation
with maximum credit of USD 135 million valid until November 30, 2014. At September 30, 2014, the
Company has used all this facility.
There are two interest rates applicable to these financing: Fixed Rate and Floating Rate.
-
Fixed interest rate is computed using the semi-annual 6-year swap rate + margin + premium.
Floating interest rate is computed using the 3-month LIBOR + margin + premium.
The Company is required to confirm in advance the applicable interest rate to be used upon delivery of the
aircraft.
Upon execution of financing agreement, the interest rate is realized as follows:
1. The Company elected fixed interest payment for the loan tied to PK-GRA. Payments are made
quarter beginning on January 5, 2013.
2. The Company elected fixed interest payment for the loan tied to PK-GRC. Payments are made
quarter beginning on January 30, 2013.
3. The Company elected fixed interest payment for the loan tied to PK-GRE. Payments are made
quarter beginning on February 9, 2013.
4. The Company elected fixed interest payment for the loan tied to PK-GRM. Payments are made
quarter beginning on September 25, 2013.
5. The Company elected floating interest payment for the loan tied to PK-GRN. Payments are made
quarter beginning on November 29, 2013.
6. The Company elected floating interest payment for the loan tied to PK-GRQ. Payments are made
quarter beginning on September 20, 2014.
each
each
each
each
each
each
Significant covenants of the financing facility are as follows:
1.
2.
3.
Debt ratio of the Group shall not be equal to or more than 7.25 times,
Coverage ratio of the Group shall not be equal to or less than 1 time,
Minimum cash of the Group shall not be equal to or less than 5% for more than two (2) consecutive
quarters.
As of September 30, 2014, the Group exceeded the financial covenants in the agreement, however the
Group has received the waiver from the facility agent in relation with noncompliance with financial
covenants. The facility agent agreed that exceeding the limit of such financial covenants do not make the
loan to become immediately due and payable.
Financing period is 10 years with maturity as follows:
1.
2.
3.
4.
5.
CRJ1000 PK-GRA will be due every 5th of each quarter. The first installment date is on January 5,
2013, with final maturity on October 5, 2022.
CRJ1000PK-GRC will be due every 30th of each quarter. The first installment date is on January 30,
2013, with final maturity on October 30, 2022.
th
CRJ1000PK-GRE will be due every 9 of each quarter. The first installment date is on February 5,
2013, with final maturity on November 9, 2022.
CRJ1000PK-GRM will be due on 25th of each quarter. The first installment date is on September 25,
2013, with final maturity on June 25, 2023.
CRJ1000PK-GRN will be due on 29th of each quarter. The first installment date is on November 29,
2013, with final maturity on August 29, 2023.
- 71 -
6.
CRJ1000PK-GRQ will be due on 20th of each quarter. The first installment date is on September 20,
2014, with final maturity on June 20, 2024.
No security deposit is issued for this financing. At September 30, 2014 and December 31, 2013 and 2012,
the outstanding balance of EDC financing amounted to USD 120,410,123, USD 105,784,435, and
PT Hewlett-Packard Finance Indonesia and PT Century Tokyo Leasing Indonesia
The loan is related to the purchase of hardware and software with lease term of 36 months and effective
interest rate per annum of 5.34% - 8% for USD and 10% - 12.25% for IDR, 7% for USD and 10% for IDR,
8% and 8% at September 30, 2014, and December 31, 2013, 2012 and 2011, respectively.
As of September 31, 2014, December 31, 2013, 2012 and 2011, the outstanding balance amounted to
25. ESTIMATED LIABILITY FOR AIRCRAFT RETURN AND MAINTENANCE COST
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
B alance at beginning o f perio d
P ro visio n during the perio d
A mo unt utilised
A mo rtized disco unt
B alance at end o f perio d
70,252,250
51,359,557
(6,942,084)
3,700,222
118,369,945
52,331,790
33,946,760
(19,509,300)
3,483,000
70,252,250
55,428,337
19,052,718
(24,578,223)
2,428,958
52,331,790
63,957,452
13,565,142
(24,408,517)
2,314,260
55,428,337
63,957,452
13,565,142
(24,408,517)
2,314,260
55,428,337
P resentatio n
Current maturities
No n current maturities
To tal
40,558,005
77,811,940
118,369,945
15,060,990
55,191,260
70,252,250
21,795,528
30,536,262
52,331,790
28,937,597
26,490,740
55,428,337
28,937,597
26,490,740
55,428,337
26. BONDS PAYABLE
In July 2013, the Company issued a sustainable public offering called “Garuda Indonesia Sustainable Bond
1”. The Company is aiming to raise Rp 4,000,000,000,000 from the offering. In the first phase, the
Company offered Sustainable Bond Garuda Indonesia 2013 amounting to Rp 2,000,000,000,000
(equivalent to USD 200,724,972). About 80% of the proceeds will be used as advance payment for the
purchase of aircrafts and the remaining 20% will be used as working capital to pay for aircraft lease rentals.
The bond principal is to be settled at bullet payment on maturity. Interest is fixed at 9.25% per annum,
payable every three months starting on October 5, 2013 to July 5, 2018. Buy-back of bond can be made
one year after allotment date at the market price.
The Trustee for the bonds is PT CIMB Niaga Tbk. The bond received Fitch rating of IdA, and listed in the
Indonesian Stock Exchange on July 8, 2013. The bond is not secured by any collateral and not guaranteed
by any party.
As of September 30, 2014, the Company’s bond was rated Id A- by Fitch rating.
The major covenants include maintaining certain financial covenants as follow:
 Coverage ratio not less than 1 time, and
 Debt ratio not to exceed 7 times.
Balance as of September 30, 2014 and December 31, 2013 amounted to USD 162,701,606
- 72 -
27. OTHER NONCURRENT LIABILITIES
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
Deferred inco me fro m sale and leaseback
(No te 48)
A dvances fro m agent
Others
27,527,525
1,688,652
603,091
22,720,707
2,742,732
408,068
5,014,143
2,116,789
113,981
2,485,983
35,253
2,485,983
35,253
To tal
29,819,268
25,871,507
7,244,913
2,521,236
2,521,236
28. POST-EMPLOYMENT BENEFITS OBLIGATION
a. Post-employment Benefits
Defined Contribution Plan
The Company and PT Garuda Maintenance Facility Aero Asia (GMFAA), a subsidiary, established a
defined contribution pension plan for all their permanent employees. The pension plan is managed by
Dana Pensiun Garuda Indonesia (DPGA), whose deed of establishment was approved by the Minister
of Finance of the Republic of Indonesia in his Decision Letter No. KEP-403/KM.17/1999 dated
November 15, 1999. The pension fund contributions are equivalent to 7.5% of employee basic salary
wherein 2% are assumed by the employee and the difference is assumed by the Company or GMFAA.
Based on the Company’s Annual General Shareholder Meeting (RUPST) dated April 26, 2013, the
shareholders agreed and approved the changes in pension funding from 7.5% of employee basic salary
to become 10%, while the contribution ratio as borne by an employee was changed from 2% to become
3% with the remaining portion is borne by the Company.
In 2014, the Company amended its pension preparation program, where employees can no longer avail
of the option to be inactive one year before their normal retirement age. Under the new CEA all
employee must be actively working until his normal retirement age.
PT Abacus Distribution Systems Indonesia (ADSI), a subsidiary, established an insurance program
covering post-retirement benefits for all qualified permanent employees. This program provides postretirement benefits based on the participants latest salaries. This program is managed by PT Asuransi
Jiwasraya (Persero). The program is funded by contributions from the subsidiary and its employee at
7.5% and 2.5%, of the employee basic salary, respectively.
In 2014, PT. Aero Systems Indonesia (ASI), a subsidiary, amended its “Collective Employment
Agreements” (CEA). The amendments change the calculation of post-employment benefit scheme for
normal retirement with additional bereavement payment for employee who dies before his normal
retirement age. ASI also amended its long-service awards benefit for employees who have worked for
10 years and 20 years.
Pension expense was recorded as part of operating expense for period ended 30 September 2014,
2013 and for the year ended December 31, 2013, 2012 and 2011 amounting to USD 4,787,119,
Defined Benefit Plan
PT Aero Wisata, a subsidiary, established a defined benefit pension plan for all its permanent
employees. The plan is managed by Dana Pensiun Aero Wisata whose deed of establishment was
approved by the Minister of Finance of Republic of Indonesia in his Decision Letter No. KEP044/KM.10/2007 dated March 26, 2007. The pension fund is funded by contribution from PT Aero
Wisata and its employees at 11.40% and 5%, respectively, of the employee gross salary. At retirement
age, the employees will obtain benefit of 2.5% times working period times basic pension income.
- 73 -
The GMFAA, ADSI, ASI and AWS also provide benefits to their qualifying employees in accordance
with the Company’s policies based on Labor Law No. 13 Year 2003. No funding has been made to this
defined benefit plan.
b. Other Long-term Benefit
The GMFAA, ADSI, ASI and AWS provide long service awards to their employees who have already
rendered 20 years of service in accordance with their policies. No funding has been made to this longterm benefit.
At September 30, 2014, December 31, 2013, 2012 and 2011, the cost of providing defined benefit plan
and other long-term benefits is calculated by PT Padma Radya Aktuaria, an independent actuary, using
the following key assumptions:
Disco unt rate
Future salary increment rate
M o rtality rate
Disability rate
Resignatio n rate
No rmal retirement rate
M edical co st increment rate fo r healthcare
September 30,
2014
(Unaudited)
December 31,
2013
December 31,
2012
January 1,
2012
December 31,
2011
8.6% - 9%
3% - 8%
TM II
8.6% - 9%
3% - 8%
TM II
5.75% - 6.5%
6% - 8%
TM II
10% o f mo rtality rate
6.50%
8.00%
TM II
6.50%
8.00%
TM II
56 years
56 years
56 years
56 years
56 years
6.1% until year 2017
then 5% flat rate
then 5% flat rate
then 5% flat rate
then 0% flat rate
then 0% flat rate
5% at age 25 and decreasing linearly to 0% at age 56
The amounts recognised in profit or loss arising from the post-employment defined benefits plan and other
long-term benefits, are as follows:
Post-employment benefit
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
Current service cost
Past service cost
Past service cost amortization
Interest costs
Actuarial losses (gain)
Effect of curtailment
Expected return on plan assets
Total
-
1,664,124
(1,403,430)
(2,074,978)
(1,814,284)
853,659
12,788
1,079,137
(141,628)
(10,613,748)
(8,809,792)
December 31, 2013
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
Past service cost
Interest costs
Total
5,951,091
150,072
288,395
10,950,691
1,638,276
(761,337)
18,217,188
-
9,765,992
876,504
9,972,893
4,964,403
(402,973)
25,176,819
- 74 -
39,130
2,806,779
(4,001,795)
(2,587,857)
(3,743,743)
1,512,637
46,688
1,203,702
(1,261,908)
(56,257)
1,444,862
Total
USD
6,804,750
162,860
288,395
13,693,952
93,218
(11,375,085)
(2,074,978)
7,593,112
Total
USD
11,317,759
923,192
13,983,374
(299,300)
(459,230)
(2,587,857)
22,877,938
December 31, 2012
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
Past service cost
Interest costs
Total
283,586
283,586
71,723
2,375,776
(321,931)
(4,592,518)
(2,466,950)
1,576,454
1,488,273
(35,981)
(339,294)
2,689,452
December 31, 2011
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
Past service cost
Interest costs
Total
10,220,571
1,424,644
13,699,527
5,969,097
(1,283,458)
30,030,381
1,830,692
1,509,300
3,339,992
8,461,859
1,532,931
14,692,324
5,062,892
(1,383,404)
28,366,602
151,918
4,252,900
379,365
(1,183,038)
(6,509,215)
(2,908,070)
1,445,157
1,847,105
1,284,392
(466,486)
4,110,168
Total
USD
11,868,748
1,424,644
17,847,162
5,611,185
(1,622,752)
(4,592,518)
30,536,469
Total
USD
11,889,626
1,532,931
22,301,629
6,726,649
(3,032,928)
(6,509,215)
32,908,692
The amounts included in the consolidated statements of financial position arising from the post-employment
defined benefits plan and other long-term benefit are as follows:
Employee benefit obligations
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
Total
USD
Present value of obligation
Unrecognized past service cost
Unrecognized actuarial gains
(losses)
Fair value of plan assets
Foreign exchange differential
Net liability
-
166,145,029
(1,743,266)
30,570,457
-
6,102,364
-
202,817,850
(1,743,266)
-
(43,405,280)
(102,387)
120,894,096
(43,022,236)
(12,451,779)
6,102,364
(43,405,280)
(43,022,236)
(102,387)
114,544,681
-
120,894,096
6,102,364
126,996,460
Plan assets
-
-
- 75 -
(12,451,779)
-
(12,451,779)
December 31, 2013
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
Total
USD
(losses)
Net liability
-
155,771,612
(1,421,066)
29,756,445
-
15,969,303
-
201,497,359
(1,421,066)
-
(52,777,586)
11,200,788
112,773,748
(40,479,066)
(10,722,622)
15,969,303
(52,777,586)
(40,479,066)
11,200,788
118,020,429
-
112,773,748
15,969,303
128,743,051
Plan assets
-
-
(10,722,622)
-
December 31, 2012
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
(10,722,622)
Total
USD
(losses)
Net liability
72,380
-
203,147,676
(1,345,156)
47,692,880
-
23,231,912
-
274,144,848
(1,345,156)
72,380
(75,847,250)
3,727,551
129,682,821
1,676,777
(58,890,645)
(104,386)
(9,625,374)
23,231,912
(74,170,473)
(58,890,645)
3,623,165
143,361,739
72,380
129,682,821
23,231,912
152,987,113
-
-
Plan assets
(9,625,374)
-
December 31, 2011
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
(9,625,374)
Total
USD
(losses)
Net liability
13,628,718
-
220,262,982
(3,980,923)
50,616,726
-
24,862,307
-
309,370,733
(3,980,923)
13,628,718
(98,536,599)
117,745,460
436,690
(58,606,534)
(7,553,118)
24,862,307
(98,099,909)
(58,606,534)
148,683,367
13,628,718
117,745,460
24,862,307
156,236,485
-
-
Plan assets
- 76 -
(7,553,118)
-
(7,553,118)
Movements in the present value obligation are as follows:
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
Present value obligation
- beginning balance
Interest expense
Past service cost
Curtailment and settlement
Benefit payment
Actuarial loss (gain) and data
correction
Foreign exchage differential
- ending balance
-
155,771,612
5,951,091
10,950,691
1,096,981
(940,119)
(9,710,243)
29,756,445
1,664,124
(1,249,038)
15,969,304
853,659
1,079,137
12,788
(10,613,748)
(1,460,642)
-
3,309,227
(284,211)
487,932
(89,006)
(141,628)
403,494
-
6,102,364
201,497,361
6,804,750
13,693,952
1,109,769
(11,553,867)
(12,419,923)
3,655,531
30,277
202,817,850
Total
USD
72,380
(66,263)
203,147,676
9,765,992
9,972,893
37,025
(497,965)
(12,488,528)
47,692,880
39,130
2,806,779
(1,873,308)
23,231,912
1,512,637
1,203,702
46,688
(56,257)
(4,208,901)
274,144,848
11,317,759
13,983,374
83,713
(554,222)
(18,637,000)
(6,117)
(13,739,548)
(40,425,933)
(11,247,374)
(7,661,663)
(1,261,908)
(4,498,570)
(26,248,830)
(52,592,283)
155,771,612
29,756,444
15,969,303
201,497,359
-
Healthcare
plan
USD
- beginning of the year
Interest expense
Past service cost
Benefit payment
correction
- end of the year
30,570,457
December 31, 2013
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
Interest expense
Past service cost
Benefit payment
correction
- end of the year
166,145,029
Total
USD
December 31, 2012
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Total
USD
13,628,718
283,586
(13,330,107)
220,262,982
10,220,571
13,699,527
7,937
(2,775,969)
(10,290,100)
50,616,726
71,723
2,375,776
(1,895,528)
24,862,307
1,576,454
1,488,273
(343,855)
(2,793,355)
309,370,733
11,868,748
17,847,162
7,937
(3,119,824)
(28,309,090)
(509,817)
(14,927,375)
(13,049,897)
330,869
(3,806,686)
(39,597)
(1,518,315)
(14,636,103)
(18,884,715)
72,380
203,147,676
47,692,880
23,231,912
274,144,848
- 77 -
December 31, 2011
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
Interest expense
Past service cost
Benefit payment
Actuarial loss (gain)
and data correction
- end of the year
29,029,160
1,830,692
1,509,300
(19,014,221)
273,787
13,628,718
Total
USD
178,586,586
8,464,859
14,692,324
(6,636)
(2,258,036)
(10,421,124)
50,162,771
151,918
4,252,900
(1,135,782)
(2,362,536)
23,929,406
1,445,156
1,847,105
(412,524)
(2,979,926)
281,707,923
11,892,625
22,301,629
(6,636)
(3,806,342)
(34,777,807)
34,046,132
(2,841,123)
3,616
(456,161)
1,284,392
(251,302)
35,334,140
(3,274,799)
220,262,982
50,616,726
24,862,307
309,370,733
Movements in the net liability of the post-employment defined benefits plan and other long-term benefit are
as follows:
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
Balance of beginning of period
Expense for the year
Payments of benefits
Balance at end of period
-
Healthcare
plan
USD
Balance of beginning of year
Balance at end of year
72,380
(6,117)
(66,263)
-
Healthcare
plan
USD
13,628,718
283,586
(509,817)
(13,330,107)
72,380
112,773,748
18,217,188
(386,597)
(9,710,243)
120,894,096
(10,722,622)
(1,814,284)
86,422
(1,295)
(12,451,779)
15,969,303
(8,809,793)
403,497
(1,460,643)
6,102,364
December 31, 2013
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
129,682,821
25,176,819
(29,597,364)
(12,488,528)
112,773,748
(9,625,374)
(3,743,743)
2,715,443
(68,948)
(10,722,622)
23,231,912
1,444,862
(4,498,570)
(4,208,901)
15,969,303
December 31, 2012
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
117,745,460
30,030,381
(7,802,920)
(10,290,100)
129,682,821
- 78 -
(7,553,118)
(2,466,950)
538,076
(143,382)
(9,625,374)
24,862,307
2,689,452
(1,526,492)
(2,793,355)
23,231,912
Total
USD
118,020,429
7,593,111
103,322
(11,172,181)
114,544,681
Total
USD
143,361,739
22,877,938
(31,386,608)
(16,832,640)
118,020,429
Total
USD
148,683,367
30,536,469
(9,301,153)
(26,556,944)
143,361,739
December 31, 2011
Defined benefit
Health
Long service
plan
care
aw ard
USD
USD
USD
Healthcare
plan
USD
29,029,160
3,339,992
273,787
(19,014,221)
13,628,718
101,112,216
28,373,540
(1,319,172)
(10,421,124)
117,745,460
(3,456,058)
(2,908,070)
171,020
(1,360,010)
(7,553,118)
Total
USD
23,929,406
4,111,058
(198,231)
(2,979,926)
24,862,307
150,614,724
32,916,520
(1,072,596)
(33,775,281)
148,683,367
The Company has discontinued the healthcare plan program for the employee who retired for certain
period.
Movements in the present value of health care plan assets are as follows:
September 30,
2014
(Unaudited)
USD
Fair value o f plan assets - beginning balance
Expected return o n plan assets
A ctuarial lo ss (gain) and data co rrectio n
40,479,066
2,074,979
1,891,362
1,295
The Co mpany and member co ntributio n
B enefit payment
(1,249,038)
(175,428)
Fo reign exchange differential
Fair value o f plan assets - ending balance
43,022,236
December 31,
2013
USD
December 31,
2012
USD
58,890,645
2,587,857
(8,097,324)
58,606,534
4,592,518
1,197,306
68,948
143,382
(1,873,308)
(1,895,528)
(11,097,752)
(3,753,567)
40,479,066
58,890,645
January 1,
2012/
December 31,
2011
USD
53,825,294
6,509,215
(88,549)
1,360,010
(2,362,536)
(636,900)
58,606,534
The effect of an increase/decrease of 1% in the assumed medical cost trend rate on:
September 30,
2014
(Unaudited)
USD
The aggregate o f the current service co st and interest co st
The accumulated po st-emplo yment benefit fo r medical co sts.
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012/
December 31,
2011
USD
1,679,350
3,225,401
2,448,539
2,448,539
30,850,164
33,063,368
48,986,796
48,986,796
The major category of plan assets, and the expected rate of return at the end of the reporting period for
each category, are as follows:
Expected return
September 30,
2014
(Unaudited)
%
Equity instruments
Time deposits and others
Investment result expected
average
Fair value of plan assets - ending
balance
December 31,
2013
%
January 1, 2012/
December 31,
December 31,
2012
2011
%
%
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
January 1, 2012/
December 31,
2011
USD
71.51%
23.84%
85.18%
8.42%
52.06%
47.94%
64.52%
35.48%
30,691,507
10,255,750
34,481,000
3,410,209
27,990,837
25,770,825
32,754,176
18,010,759
4.65%
6.39%
8.71%
13.32%
2,074,979
2,587,857
5,128,983
7,841,599
100%
100%
109%
113%
43,022,236
40,479,066
58,890,645
58,606,534
The overall expected rate of return is a weighted average of the expected returns of the various categories
of plan assets held. The directors’ assessment of the expected return is based on historical return trends
and analysis’ predictions of the market for the assets over the life of the related obligation.
The actual return on plan assets was USD 2,074,979, USD 2,587,857, USD 4,592,518 and USD 6,509,215
in the nine-month periods ended September 30, 2014 and for the years ended December 31, 2013, 2012
and 2011, respectively.
- 79 -
The history of experience adjustment is as follows:
September 30,
2014
(Unaudited)
USD
P resent value o f defined benefit o bligatio n
Fair value o f plan assets
Deficit
Experience adjustment o n plan liabilities
Experience adjustment o n plan assets
December 31,
2013
USD
202,817,850
(43,022,236)
159,795,614
201,497,359
(40,479,066)
161,018,293
4,346,060
(6,907,059)
January 1,
2012/
December 31,
2011
USD
December 31,
2012
USD
December 31,
2010
USD
274,144,848
(58,890,645)
215,254,203
309,370,733
(58,606,534)
250,764,199
281,707,923
(53,825,294)
227,882,629
22,241,577
(11,107,613)
8,973,931
4,645,283
(6,920,093)
1,166,177
85,610
1,989,757
29. CAPITAL STOCK
Number of
Percentage of
Total paid-up
shares
ownership
capital
%
USD
Series A Dwiwarna share:
Government of the Republic of Indonesia
Series B share:
Credit Suisse AG Singapore
TC AR CL PT Trans Airways
Commisioner:
Directors:
Emirsyah Satar
Batara Silaban
Faik Fahmi
Handrito Hardjono
Public
(each holding below 2%)
Total
- 80 -
1
0.0000%
0.05
15,653,127,999
60.5094%
792,323,087
6,711,457,801
25.9441%
339,717,592
231,534
0.0009%
11,720
1,904,369
285,207
181,829
166,094
123,816
97,118
0.0074%
0.0011%
0.0007%
0.0006%
0.0005%
0.0004%
96,395
14,436
9,204
8,407
6,267
4,916
3,501,350,865
25,868,926,633
13.5350%
100.0000%
177,241,545
1,309,433,569
December 31, 2013
Percentage of
ownership
%
Number of
shares
Series B share:
Trust A/C Clients
Commisioner:
Directors:
Emirsyah Satar
Batara Silaban
Faik Fahmi
Handrito Hardjono
Public
Total
1
0.0000%
0.10
15,653,127,999
69.1362%
792,323,085
2,466,965,725
10.8960%
124,871,776
462,691,000
2.0436%
23,420,288
231,534
0.0010%
11,720
1,904,369
285,207
181,829
166,094
123,816
97,118
0.0084%
0.0013%
0.0008%
0.0007%
0.0005%
0.0004%
96,395
14,436
9,204
8,407
6,267
4,916
4,055,221,308
22,640,996,000
17.9110%
100.0000%
205,265,396
1,146,031,889
December 31, 2012
Percentage of
ownership
%
Number of
shares
Series B share:
Commisioner:
Directors:
Emirsyah Satar
Elisa Lumbantoruan
Batara Silaban
Faik Fahmi
Handrito Hardjono
Public
Total
Total paid-up
capital
USD
Total paid-up
capital
USD
1
0.0000%
0.10
15,653,127,999
69.1362%
792,323,087
2,466,965,725
403,634,000
248,496,000
10.8960%
1.7828%
1.0975%
124,871,776
20,430,967
12,578,260
231,534
0.0010%
11,720
1,904,369
968,835
285,207
181,829
123,816
116,094
97,118
0.0084%
0.0043%
0.0013%
0.0008%
0.0005%
0.0005%
0.0004%
96,395
49,040
14,436
9,204
6,267
5,876
4,916
3,864,863,473
22,640,996,000
17.0702%
100.0000%
195,629,945
1,146,031,889
- 81 -
December 31, 2011
Percentage of
ownership
%
Number of
shares
Total paid-up
capital
USD
Series A Dwiwarna Share
1
0.0000%
0.10
Series B shares:
PT Bahana Securities Portfolio III+II
PT Danareksa Persero S/A 03
PT Mandiri Sekuritas
15,653,127,999
993,579,225
998,613,000
474,773,500
403,634,000
248,496,000
69.1362%
4.3884%
4.4106%
2.0970%
1.7828%
1.0975%
1,584,561,950
100,579,536
101,089,103
48,061,088
40,859,671
25,155,128
538,300
685,574
1,185,574
231,534
0.0024%
0.0030%
0.0052%
0.0010%
54,492
69,400
120,015
23,438
1,904,369
968,835
678,835
534,835
500,000
375,131
0.0084%
0.0043%
0.0030%
0.0024%
0.0022%
0.0017%
192,778
98,075
68,718
54,141
50,615
37,974
3,861,169,288
22,640,996,000
17.0539%
100.000%
390,860,770
2,291,936,892
Commisioners:
Hadiyanto
Adi Rahman Adiwoso
Sahala Lumban Gaol
Directors:
Emirsyah Satar
Elisa Lumbantoruan
Hadinoto Soedigno
Achirina
Agus Priyanto
Ari Sapari
Public
Total
“Series A” share is a special share owned by the Government that has special voting rights. The rights and
restrictions in effect on "Series B" share also applies to "Series A" share, except that the Government
cannot transfer the "Series A" share, and has a veto in connection with (i) changes in scope of the
Company, (ii) capital increase without rights issue in advance, (iii) a merger, consolidation, acquisition and
separation, (iv) changes of the provisions governing the rights of shares of "Series A" as stipulated in the
Articles of Association, and (v) the dissolution, bankruptcy and liquidation of the Company. "Series A" share
also has the right to appoint one director and one commissioner.
Based on Extraordinary Shareholder Meeting (RUPSLB) dated June 28, 2012, the shareholders agreed to
carry out a quasi-reorganization in accordance with PSAK 51 (Revised 2003) and Bapepam rules No. IX.L1
related to quasi-reorganization procedures, supplementary to the Bapepam Chairman Decision Letter
No. Kep-16/PM/2004 dated April 13, 2004. The Company performed the procedures of quasi-reorganization
based on the opening consolidated financial statement as of January 1, 2012, as remeasured in U.S. Dollar
which is the Company’s functional and presentation currency.
- 82 -
In connection with quasi-reorganization, the RUPSLB approved the capital reduction by lowering the
nominal value of shares from the original amount of Rp 500 to Rp 459 to be carried out after the
government regulation related with new capital structure is issued. After the effective date, the capital
structure of the Company will be:
1.
Authorized capital reduced from Rp 15,000,000,000,000 to Rp 13,770,000,000,000.
2.
Issued and paid-up capital reduced from Rp 11,320,498,000,000 to Rp 10,392,217,164,000.
On December 27, 2012, the Government of Republic of Indonesia issued Government Regulation No. 114
year 2012 related to the decrease of the Government Equity participation in the Company amounting to
Rp 641,778,248,000. The Company also received the Decision Letter from Minister of Law and Human
Rights of the Republic Indonesia No. AHU-66159.AH.01.02.tahun 2012 related with the amendment of the
Company, articles of association in connection with quasi-reorganization. Because the component of equity
other than the capital stock is not sufficient to eliminate the deficit balance, the Company reduced its capital
stock by USD 1,145,905,003. The capital stock after quasi-reorganization amounted to USD 1,146,031,889.
Based on Extraordinary Shareholder Meeting (RUPSLB) dated March 24, 2014, the shareholder agreed to
issue 3,227,930,633 Series B shares or 12.48% from total issued shares and mandated to board of
commissioner to define the realization of changes the capital stock in relation with rights issue. The total
issue share after rights issue of 25,868,926,633 shares. The Company offering B Series shares on that
rights issue with maximum fund received of Rp 1,484,848,091,180 or equivalent with USD 130,204,652 at
sale price of Rp 460 per share. Total additional capital stock is amounting to Rp 1,481,620,160,547 or
equivalent with USD 163,401,680 with par value Rp 456 per share.
The differences between the par value at the exchanges rate set in the Company’s Articles of Association
and the par value at the exchange rate prevailing when the Company received payment for rights issue is
recorded as additional paid in capital (Note 30).
30. ADDITIONAL PAID-IN CAPITAL
September 30,
2014
(Unaudited)
USD
Capital reserve
GEP o n 2 bo eing 747-400 aircrafts and 7
bo eing 737-400 aircrafts based o n
Go vernment Regulatio n No . 70/2000
GEP o n jet engine test cell based o n the Decisio n
Letter o f M inistry o f Finance o f the Republic
o f Indo nesia No . S-124/M K.016/1998
Issuance o f shares thro ugh public o ffering
Eliminatio n o f deficit in co nnectio n with
quasi-reo rganizatio n
Issuance o f shares thro ugh rights issue
Share issuance co st rights issue
Exchange rate differences o n rights issue
To tal
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
106
106
106
106
106
10
10
10
10
10
4,088,185
121,453,020
(12,474,286)
4,088,185
121,453,020
(12,474,286)
4,088,185
121,453,020
(12,474,286)
4,088,185
121,453,020
(12,474,286)
4,088,185
121,453,020
(12,474,286)
(108,518,998)
283,152
(3,077,327)
(33,197,028)
(31,443,166)
(108,518,998)
4,548,037
(108,518,998)
4,548,037
(108,518,998)
4,548,037
113,067,035
The Government Equity Participation (GEP) of Rp 8,401,219,715 or equivalent with USD 4,088,185 was
presented as additional paid-in capital since the Company has not yet increased its paid-up capital.
Share premium recorded amounting to Rp 3,227,930,633 equivalent to USD 283,152, arise from rights
issue held by Company in 2014. The market value of share amounted to Rp 460/share and nominal value
amounted to Rp 459/share.
Share premium arise from the market value of Rp 750 per share and nominal value of Rp 500 per share at
initial public offering in 2011. Total share premium recorded before stock issuance cost amounted
Rp 1,100,000,000,000 equivalent with USD 121,453,020.
- 83 -
The adjustment in additional paid in capital of USD 108,518,998 was made in connection with quasireorganization to eliminate opening deficit balance as of January 1, 2012.
31. OTHER COMPREHENSIVE INCOME
September 30,
2014
(Unaudited)
USD
Revaluatio n surplus
B eginning B alance
A dditio ns
Deductio ns
Transferred to retained earnings
Deferred tax realizatio n
Deferred tax effect
No n co ntro lling interest
Eleminatio n o f deficit in co nnectio n
Sub to tal
Hedge Reserve
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
52,373,880
16,105,056
(149,598)
(4,026,264)
-
38,412,435
18,993,491
(4,345,839)
(2,283,780)
2,327,626
(747,118)
17,066
46,699,641
(8,316,974)
29,768
83,793,914
-
74,151,589
10,141,697
(503,273)
3,901
-
64,303,074
52,373,880
38,412,435
(83,793,914)
-
83,793,914
-
-
(101,281)
-
-
Cumulative translatio n adjustments
Owner o f the parent co mpany
No n co ntro lling interest
Sub to tal
(210,909,318)
(210,909,318)
(213,967,790)
(213,967,790)
(188,261,422)
611,390
(187,650,032)
(183,073,465)
(730,867)
(183,804,332)
(183,073,465)
(730,867)
(183,804,332)
To tal
(146,707,525)
(161,593,910)
(149,237,597)
(183,804,332)
(100,010,418)
32. STOCK OPTION
In 2011, the Company granted stock options to qualifying commissioners, directors and employees. Stock
compensation expense is calculated based on the fair value of stock options granted and recognised as
compensation expense. Based on the program, compensation expenses are recognised (cliff-vesting) using
straight-line method during the vesting period. The accumulated costs recognised as stock options in equity
in 2011 amounted to Rp 19,740,236,981 or equivalent to USD 2,278,677, consisting of 87,847,064 shares
for phase 1 and 65,885,298 shares for phase 2.
The fair value of stock options are valued by Towers Watson an independent appraisal, in its report dated
May 19, 2011 for phase 1 and February 29, 2012 for phase 2 which used Black-Scholes model to measure
the option price.
The implementation of MESOP program is carried out through the following:
a) Share purchase option rights granted to all participants who meet the specified requirements.
b) Share purchase option rights that were distributed in MESOP program can be used by participants to
purchase the Company's new shares at a price to be determined with due regard to rules and
regulations.
c) Right to purchase stock options will be issued by the Company in three stages over a period of two
years after the date of listing on the Indonesia Stock Exchange.
d) Stock option on first stage is given on the date of listing of shares on the Indonesia Stock Exchange.
The second stage is given not later than December 2011. The third stage is given not later than
December 2012.
e) Stock option issued in each stage will be subject to the vesting period of one year or 12 months from
the date of issuance within the transaction period allowed to convert into stock option rights.
- 84 -
f)
Right to exercise the option will be determined based on state laws, participants will use the option to
purchase stock, must pay the full price of implementation and cost incurred in implementation of the
option rights.
g) Vesting period within 12 months
h) Option life in 5 years
In 2012, the Company granted stock option phase 3 of 65,885,298 shares. The accumulated cost
recognised as stock option in equity as of September 30, 2014, December 31, 2013 and 2012 amounted to
USD 2,770,970, USD 2,770,970 and USD 1,148,451, respectively.
The fair values of stock options are valued by Towers Watson an independent appraisal, in its report dated
February 26, 2013 for phase 3 which used Black-Scholes model to measure the option price.
33. APPROPRIATED RETAINED EARNINGS
Under Indonesian Company Law, companies are obliged to allocate certain amount from the net earnings
of each accounting year to reserve fund if the Company has a positive profit balance. The allocation of net
earnings shall be performed up to an amount of 20% of the company’s issued and paid up capital.
At the Annual General Meeting of Shareholders (RUPST) dated April 28, 2014 as stated in Deed No. 4 of
Aulia Taufani, S.H, notary in Tangerang the RUPST approved and stipulated the use of Net Income
Attributable to Owners of the Parent Company for the fiscal year 2013 amounting to USD 11,038,843 with
details as follows:
1. Dividend of 0%.
2. 5% of the Net Income Attributable to Owners of the Parent Company based on the consolidated
financial statements for the year ended December 31, 2013 or in the amount of USD 551,942 shall be
used as the Company’s Mandatory Reserve.
3. 95% of the net income attributable to owners of the Parent Company based on the consolidated
financial statements for the year ended December 31, 2013 or in the amount of USD 10,486,901 shall
be used as other reserves.
At the Annual General Meeting of Shareholders (RUPST) dated April 26, 2013 as stated in Deed No. 128 of
Aryanti Artisari, S.H, M.Kn, notary in Jakarta the RUPST approved and stipulated the use of Net Income
Attributable to Owners of the Parent Company for the fiscal year 2012 amounting to USD 110,598,370 with
details as follows:
1. Dividend of 0%.
2. 5% of the Net Income Attributable to Owners of the Parent Company based on the consolidated
financial statements for the year ended December 31, 2012 or in the amount of USD 5,529,919 shall be
used as the Company’s Mandatory Reserve.
3. 95% of the net income attributable to owners of the Parent Company based on the consolidated
financial statements for the year ended December 31, 2012 or in the amount of USD 105,068,451 shall
be used as other reserves.
The balance of the Company’s appropriated retained earnings as of September 30, 2014 amounted to
USD 6,081,861 or 0.47% of the Company’s issued and paid up capital.
- 85 -
34. NON CONTROLLING INTEREST
No n co ntro lling interests in net assets
September 30,
2014
December 31,
(Unaudited)
2013
2012
USD
USD
USD
P T A bacus Distributio n Systems
Indo nesia
P T A ero Wisata and
its subsidiaries
To tal
2011
USD
Net inco me attributable to no n co ntro lling interests
September 30,
2014
December 31,
(Unaudited)
2013
2012
2011
USD
USD
USD
USD
(265,306)
250,859
261,669
228,327
14,447
6,256
3,575
(706)
(266,012)
1,219,281
1,470,140
1,609,259
1,870,928
757,240
985,567
19,318
33,765
155,281
161,537
240,628
244,203
(5,521)
363,327
357,806
35. OPERATING REVENUE
Scheduled airline services
P assenger
Cargo
Excess baggage
M ail and do cument
Sub to tal
2014
(Nine-mo nths)
(Unaudited)
USD
2013
(Nine-mo nths)
(Unaudited)
USD
2,300,956,768
159,735,074
7,206,389
6,272,005
2,474,170,236
2,199,310,865
143,069,475
6,513,615
6,419,142
2,355,313,097
2,955,288,708
195,952,040
10,081,118
8,764,325
3,170,086,191
2,687,450,057
184,889,000
7,029,768
7,881,919
2,887,250,744
2,403,955,183
164,501,388
7,584,589
4,497,804
2,580,538,964
230,398,551
2013
(One-year)
USD
2012
(One-year)
USD
2011
(One-year)
USD
No n-scheduled airline services
Hajj
91,005,154
71,141,068
195,192,932
247,262,921
Charter
16,118,890
18,849,310
20,772,955
21,828,656
16,060,670
107,124,044
89,990,378
215,965,887
269,091,577
246,459,221
50,982,595
44,797,405
43,034,438
33,460,285
14,853,133
14,697,578
4,556,653
3,580,383
1,814,191
451,137
8,161,029
220,388,827
61,403,218
49,568,808
45,261,848
31,710,483
16,593,070
17,338,273
3,148,688
4,371,438
2,285,768
321,845
9,681,893
241,685,332
81,964,385
68,308,243
60,461,986
47,393,619
22,218,301
22,873,959
4,869,580
5,818,113
2,874,851
499,477
12,741,994
330,024,508
79,878,710
67,362,378
50,136,002
47,575,662
21,357,575
21,204,424
3,892,417
5,874,813
2,409,227
898,822
15,536,611
316,126,641
52,001,124
52,922,525
43,758,469
56,094,403
17,999,375
19,659,130
3,214,144
7,251,259
3,094,119
1,210,610
12,125,062
269,330,220
2,801,683,107
2,686,988,807
3,716,076,586
3,472,468,962
3,096,328,405
Sub to tal
Others
Travel agent
A ircraft maintenance and o verhaul
Catering
A irline related
Ho tel
Facilities
Info rmatio n techno lo gy
Transpo rtatio n
Healthcare service
Training service
Others
Sub to tal
To tal
No revenue earned from individual customers exceeded 10% of total operating revenue.
36. FLIGHT OPERATIONS EXPENSES
2014
(Nine-mo nths)
(Unaudited)
USD
Fuel
A ircraft rental and charter
Salaries and allo wances
Depreciatio n expenses
Insurance
Emplo yee benefit expenses
Others
To tal
1,175,736,059
530,094,390
110,739,381
43,586,276
12,667,198
4,368,518
1,374,463
1,878,566,285
2013
(Nine-mo nths)
(Unaudited)
USD
1,019,466,598
391,211,002
120,787,554
47,460,164
12,327,090
6,968,864
1,700,048
1,599,921,320
2013
(One-year)
USD
2012
(One-year)
USD
2011
(One-year)
USD
1,420,139,208
592,251,660
144,911,938
62,155,939
16,691,989
6,950,541
1,738,869
2,244,840,144
1,255,126,779
448,601,352
116,443,700
51,501,031
24,561,135
10,438,528
2,302,588
1,908,975,113
1,137,745,428
403,237,944
120,805,043
48,765,968
26,659,184
11,893,475
1,811,310
1,750,918,352
At September 30, 2014 and 2013 and December 31, 2013, 2012 and 2011, total flight operations expenses
pertaining to purchases of fuel from related party (Note 45) are 63%, 64%, 63%, 66% and 65%,
respectively.
- 86 -
37. MAINTENANCE AND OVERHAUL EXPENSES
2014
(Nine-mo nths)
(Unaudited)
USD
Spareparts
Rental
Fuel
Insurances
Others
To tal
2013
(Nine-mo nths)
(Unaudited)
USD
99,794,378
63,460,439
46,226,394
40,484,420
5,064,788
4,690,320
943,864
499,913
670,020
261,834,536
79,807,453
49,469,806
40,788,466
37,872,053
6,479,886
3,688,655
963,751
429,297
212,379
219,711,746
2013
(One year)
USD
91,000,588
67,952,167
59,914,151
55,022,379
6,189,182
5,116,843
1,467,728
1,220,779
329,898
288,213,715
2012
(One year)
USD
104,868,442
56,396,134
60,142,618
52,469,171
6,941,855
5,042,888
1,527,369
508,342
956,845
288,853,664
2011
(One year)
USD
78,715,684
59,327,206
46,297,964
52,150,354
6,430,955
2,375,649
905,841
461,229
1,501,839
248,166,721
38. TICKETING, SALES AND PROMOTION EXPENSES
2014
(Nine-mo nths)
(Unaudited)
USD
Co mmissio ns
Reservatio ns
P ro mo tio ns
Rental
P ro fessio nal services and training
Others
To tal
93,331,637
84,426,709
34,174,314
34,227,225
9,232,167
1,728,799
(543,423)
3,779,038
260,356,466
2013
(Nine-mo nths)
(Unaudited)
USD
84,607,130
81,282,453
28,737,091
33,203,696
7,527,060
1,422,990
1,278,831
4,300,606
242,359,857
2013
(One-year)
USD
117,819,462
111,457,234
41,504,898
47,532,130
9,289,844
2,401,356
1,348,838
4,488,373
335,842,135
2012
(One-year)
USD
119,288,145
96,216,046
41,566,759
42,678,492
9,064,071
950,897
1,969,508
5,710,017
317,443,935
2011
(One-year)
USD
119,437,671
70,550,390
31,915,747
29,663,123
7,235,850
1,727,495
4,709,431
265,239,707
39. PASSENGER SERVICE EXPENSES
2014
(Nine-mo nths)
(Unaudited)
USD
P assenger services
General invento ries co nsumptio n
Others
To tal
141,104,520
79,467,115
1,759,191
1,632,383
232,506
2,239,995
226,435,710
2013
(Nine-mo nths)
(Unaudited)
USD
2013
(One-year)
USD
129,688,408
78,076,727
1,611,940
1,435,163
6,778,902
1,161,427
218,752,567
175,481,145
100,908,081
2,225,273
1,624,865
1,676,588
1,584,909
283,500,861
2013
(Nine-mo nths)
(Unaudited)
USD
2013
(One-year)
USD
2012
(One-year)
USD
157,351,404
97,371,195
2,088,304
1,693,605
2,519,680
2,925,230
263,949,418
2011
(One-year)
USD
158,852,969
91,644,018
1,379,053
4,811,369
4,638,714
261,326,123
40. USER CHARGE AND STATION EXPENSES
2014
(Nine-mo nths)
(Unaudited)
USD
A ircraft and flight services
Rental
Others
To tal
181,880,594
13,993,579
10,025,565
1,606,408
(463,986)
990,108
208,032,268
168,045,894
14,623,865
9,591,092
1,488,510
2,577,201
1,420,493
197,747,055
- 87 -
229,242,835
20,231,807
12,951,822
1,961,552
851,859
1,758,481
266,998,356
2012
(One-year)
USD
200,761,647
23,782,036
10,923,247
2,310,306
1,483,712
1,218,554
240,479,502
2011
(One-year)
USD
186,105,549
22,833,408
10,116,555
468,200
1,625,268
1,240,195
222,389,175
41. GENERAL AND ADMINISTRATIVE EXPENSES
2014
(Nine-mo nths)
(Unaudited)
USD
Taxes
Rental
M aintenance and repairs
Utilities
Insurances
Office supplies
Healthcare services
M embership dues and subscriptio n
Others
To tal
66,436,678
18,223,425
16,874,698
15,256,168
12,702,807
11,950,573
11,730,956
5,613,728
2,051,606
867,821
757,064
(851,069)
6,010,864
167,625,319
2013
(Nine-mo nths)
(Unaudited)
USD
67,577,159
14,249,331
16,796,107
14,375,955
10,890,666
8,213,149
10,500,895
7,331,780
2,367,783
973,342
942,706
6,186,775
3,122,296
163,527,944
2013
(One-year)
USD
85,236,646
19,794,132
23,405,558
18,953,719
12,995,228
10,786,536
14,754,097
8,982,388
3,423,127
1,294,699
1,265,750
6,013,391
11,867,093
218,772,364
2012
(One-year)
USD
91,045,462
16,241,432
19,765,763
17,322,651
12,739,440
9,844,897
14,689,277
5,361,438
3,590,454
3,523,752
1,566,588
7,870,581
10,176,092
213,737,827
2011
(One-year)
USD
91,027,037
11,165,975
15,965,250
17,851,217
10,552,782
8,715,876
13,423,240
1,184,851
4,462,929
6,849,308
1,168,447
6,165,616
9,726,037
198,258,565
42. OTHER INCOME (CHARGES) – NET
Gain (lo ss) sale and leaseback
Gain (lo ss) o n sale o f pro perty and equipment
(No te 14)
Insurance claim
Gain o n revaluatio n o f investment pro perty
(No te 15)
Lo ss o n derivative
Impairment lo ss
Others - net
To tal
2014
(Nine-mo nths)
(Unaudited)
USD
2013
(Nine-mo nths)
(Unaudited)
USD
17,330,948
418,186
842,215
(2,046,868)
(8,416,462)
882,921
8,592,754
2013
(One-year)
USD
846,147
2012
(One-year)
USD
2011
(One-year)
USD
(6,732,412)
-
(487,429)
2,082,170
3,123,296
11,726,217
2,226,759
-
2,462,930
-
(4,934,100)
4,664,323
1,743,150
3,107,892
(6,528,600)
(10,649,525)
567,851
2,193,278
682,021
(5,361,580)
(10,371,034)
132,276
(19,423,970)
340,318
(5,527,950)
(13,855,546)
(533,322)
(17,113,570)
43. FINANCE COST
2014
(Nine-mo nths)
(Unaudited)
USD
Interest expense
Lo ng-term lo ans
B o nds payable
Leases
B ank lo ans
Others
Sub to tal
Other finance co st
To tal finance co st
29,804,533
11,678,732
4,356,178
321,255
2,503,421
48,664,119
9,173,199
57,837,321
2013
(Nine-mo nths)
(Unaudited)
USD
18,136,012
3,997,313
4,746,749
695,490
1,022,214
28,597,778
15,707,780
44,305,558
- 88 -
2013
(One-year)
USD
24,394,888
7,896,630
7,048,681
1,224,877
3,883,989
44,449,065
15,391,023
59,840,088
2012
(One-year)
USD
13,088,380
7,018,031
479,062
1,438,194
22,023,667
3,201,252
25,224,919
2011
(One-year)
USD
10,591,960
6,311,745
380,785
1,611,944
18,896,434
904,936
19,801,370
44. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing income attributable to parent company owners by the
weighted average number of ordinary shares outstanding during the period.
Below is the data used for the computation of basic earnings per share:
2014
(Nine-mo nths)
(Unaudited)
USD
Net lo ss attributable to o wner o f the parent
Weight average number o f share fo r calculatio n
o f basic earning per share
Earning per share
2013
(Nine-mo nths)
(Unaudited)
USD
2013
(One year)
USD
2012
(One year)
USD
2011
(One year)
USD
(219,540,217)
(15,014,775)
11,038,843
110,598,370
63,867,730
24,188,633,974
(0.00908)
22,640,996,000
(0.00066)
22,640,996,000
0.00049
22,640,996,000
0.00488
22,640,996,000
0.00282
The Company did not compute diluted earnings per share because the potential ordinary shares (i.e.
options) are anti-dilutive.
45. NATURE OF RELATIONSHIP AND TRANSACTIONS WITH RELATED PARTIES
i)
Nature of relationship
The Government of the Republic of Indonesia represented by Ministry of Finance, is the majority
stockholder of the Company.
All entities that are owned and controlled by the Ministry of Finance of the Republic of Indonesia and
including entities where the Ministry of Finance Republic of Indonesia have significant influence.
Commissioners and directors are key management personnel.
ii)
Transactions with Related Parties
In the normal course of business, the Group entered into certain transactions with related parties.
a. Details of significant accounts with related parties (government - owned entities unless otherwise
indicated) are as follows:
Cash and Cash Equivalent s (Not e 5)
Bank Mandiri
Bank Syariah Mandiri
Bank Rakyat Indonesia Syariah
Tot al
Trade Account s Receivable (Not e 6)
PT POS Indonesia
PT Abacus Int ernat ional Lt d
PT Jiwasraya
PT Gapura Angkasa
PT Bukit Asam (Persero) Tbk
Minist ry of
Religious Af f airs
Ot hers
Tot al
Sept ember 30,
2014
(Unaudit ed)
December 31,
2013
December 31,
2012
January 1,
2012
December 31,
2011
USD
USD
USD
USD
USD
57,348,487
55,909,300
49,225,218
-
37,336,951
54,179,461
55,816,521
8,204,118
6,563,295
56,299,467
14,952,513
52,801,185
-
77,944,852
135,080,653
47,190,306
-
77,944,852
135,080,653
47,190,306
-
162,483,005
162,100,346
124,053,165
260,215,811
260,215,811
855,119
655,571
424,166
348,832
109,519
532,813
410,871
1,966,795
920,503
113,915
843,371
478,751
2,479,139
934,252
198,306
595,477
386,565
4,802,176
767,763
1,531,509
595,477
386,565
4,802,176
767,763
1,531,509
16,906
73,364
26,672
63,397
102,417
48,907
32,734,421
342,375
32,734,421
342,375
2,483,477
4,034,966
5,085,143
41,160,286
16,845,588
16,845,647
16,886,623
18,559,622
40,222,668
5,651,251
Sept ember 30,
2014
December 31,December 31,
(Unaudit ed)
2013
2012
%
%
%
January 1,
2012
%
(Bef ore QuasiReorganizat ion)
%
5.14%
5.49%
5.75%
12.23%
12.49%
41,160,286
0.08%
0.14%
0.24%
1.93%
1.98%
16,898,590
16,967,212
0.53%
0.57%
0.78%
0.79%
0.81%
639,391
639,391
0.87%
2,19%
0.40%
0.06%
0.06%
Ot her asset s (Not e 17)
PT Merpat i Nusant ara
Bank Loans (Not e 18)
- 89 -
Sept ember 30,
Sept ember 30,
2014
December 31,
December 31,
January 1,
December 31,
2014
January 1,
(Bef ore Quasi-
(Unaudit ed)
2013
2012
2,012
2,011
(Unaudit ed)
December 31,December 31,
2013
2012
2,012
Reorganizat ion)
USD
USD
USD
USD
USD
%
%
%
%
%
7.35%
6.66%
5.97%
4.49%
4.49%
8.24%
8.06%
13.96%
11.27%
11.27%
Trade Account s Payable (Not e 19)
PT Pert amina (Persero)
143,725,925
108,911,066
72,434,320
45,362,233
45,362,233
PT Gapura Angkasa
6,085,402
3,706,367
4,680,787
3,898,096
3,898,096
2,341,164
2,279,948
1,561,545
669,865
669,865
2,055,509
3,133,425
3,526,065
2,057,380
2,057,380
PT Telekomunikasi Indonesia
(Persero) Tbk
997,118
694,318
903,361
137,129
137,129
896,000
3,568,602
-
-
-
PT Angkasa Pura Solusi
25,666
-
-
-
-
PT Abacus Int ernat ional Pt e. Lt d.
18,493
-
667,411
-
-
1,500
-
-
-
-
156,146,777
122,293,726
83,773,489
52,124,703
52,124,703
56,915,203
42,803,615
14,885,592
6,244,064
6,244,064
Indonesia Eximbank
40,775,313
-
100,000,000
40,000,000
40,000,000
30,288,430
40,198,427
-
-
-
PT Pert amina (Persero)
28,758,327
43,137,490
57,516,654
57,516,654
57,516,654
13,473,346
16,104,859
16,104,859
18,210,069
18,210,069
4,841,873
5,798,472
7,308,953
8,813,021
8,813,021
175,052,492
148,042,863
195,816,058
130,783,808
130,783,808
Perum LPPNPI
PT Angkasa Pura Logist ic
Tot al
Long t erm liabilit ies (Not e 23)
Tot al
b. Operating expenses from related parties constituted 32.84%, 29.13%, 30.44%, 26.29%, and
26.41% of the total operating expenses for the nine-month periods ended September 30, 2014 and
2013, and for the years ended December 31, 2013, 2012 and 2011, respectively. At reporting date,
the liabilities for these expenses were presented as trade accounts payable which constituted
7.35%, 6.66%, 5.97%, 4.49% and 4.64%, respectively, of the total liabilities as of September 30,
2014 and 2013, and December 31, 2013, 2012 and 2011.
The details of operating expenses from related parties are as follows:
2014
(Nine-mo nths)
(Unaudited)
USD
P T Gapura A ngkasa
P erum LP P NP I
To tal
P ercentage o f:
To tal o perating expense
c.
2013
(Nine-mo nths)
(Unaudited)
USD
935,463,412
44,557,002
13,517,413
7,699,666
1,726,441
1,002,963,934
707,677,208
44,781,719
12,180,247
11,768,754
776,407,928
32.84%
29.13%
2013
(One year)
USD
1,020,854,735
52,843,455
23,765,076
12,718,756
3,748,853
1,113,930,875
30.44%
2012
(One year)
USD
784,715,722
48,246,437
21,038,109
14,626,959
868,627,227
26.29%
2011
(One year)
USD
715,342,443
46,055,895
19,179,678
12,878,722
793,456,738
26.41%
The transactions with PT Pertamina (Persero) were related to aircraft fuel purchase mainly for
domestic route and certain international route while the transactions, with PT Gapura Angkasa,
PT Angkasa Pura I (Persero) and PT Angkasa Pura II (Persero) are related to airport operation and
ground handling.
d. The transaction with PT Asuransi Jasa Indonesia and PT Tugu Pratama Indonesia are related to
the Company’s assets insurance.
- 90 -
e. Remuneration of Commissioners and Directors
2014
(Nine-mo nths)
(Unaudited)
USD
2013
(Nine-mo nths)
(Unaudited)
USD
2013
(One year)
USD
2012
(One year)
USD
2011
(One year)
USD
Co mmisio ners
Sho rt term benefits
Terminatio n benefits
Shared-B ased P ayment
To tal
424,458
40,765
465,223
560,856
55,725
616,581
629,373
53,091
682,464
831,689
198,591
97,449
1,127,729
563,581
112,337
292,690
11,020
979,628
Directo rs
Sho rt term benefits
Terminatio n benefits
Shared-B ased P ayment
To tal
1,203,880
186,281
1,390,161
1,937,810
270,266
2,208,076
2,152,120
257,494
2,409,614
2,826,033
701,412
342,946
3,870,391
1,762,081
399,228
1,064,985
40,953
3,267,247
46. FINANCIAL INSTRUMENTS, FINANCIAL RISK AND CAPITAL RISK MANAGEMENT
A. Capital management
The Group strives to achieve an optimum capital structure in achieving the business goals, including
maintaining a sound capital ratio and a strong credit rating, in order to maximize shareholder value and
ensure the Group’s business continuity.
The capital structure of the Group consists of debt as disclosed in Notes 18, 23 and 24, cash and cash
equivalents, and total equity comprising issued capital, additional paid-in capital, retained earnings and
non-controlling interest.
The gearing ratio as of September 30, 2014, December 31, 2013 and 2012 are as follows:
Debt
Loan from banks and financial institution
Long-term loans
Bonds payable
Lease liabilities
Total debt
Net debt
Equity
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
44,990,280
833,748,523
162,701,606
122,238,729
1,163,679,138
393,218,124
770,461,014
1,038,168,610
45,222,668
604,695,491
162,850,383
191,750,944
1,004,519,486
475,260,630
529,258,856
1,117,148,117
5,651,251
400,947,490
206,352,598
612,951,339
325,784,942
287,166,397
1,114,960,078
74%
47%
26%
Net debt to equity ratio
The Boards of Commissioners and Directors periodically review the Groups’ financial performance. As
part of this review, the Board of Commissioners and Directors consider the Groups’ financial risk
exposure.
- 91 -
B. Categories of financial instruments
Classification of the Groups’ financial assets and liabilities are as follows:
Available-for-sale
Other financial assets
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
8,797,130
8,800,031
9,201,350
Loan and receivables
Trade accounts receivables
Other receivables
Maintenance reserve fund and security
deposits
Other assets
Total
393,218,124
152,527,801
6,449,848
475,260,630
139,981,363
8,745,081
325,784,942
129,471,098
7,877,613
781,433,425
23,136,774
1,365,563,102
617,623,057
33,164,537
1,283,574,699
461,933,812
31,874,533
966,143,348
Financial liabilities - amortized cost
Bank loans and financial institution
Trade payables
Other payable
Accrued expenses
Long-term loans
Lease liabilities
Bonds payable
Total
44,990,280
258,126,377
25,563,648
158,352,071
833,748,523
122,238,729
162,701,606
1,605,721,234
45,222,668
206,186,276
16,271,886
160,967,081
604,695,491
191,750,944
162,850,383
1,387,944,729
5,651,251
173,469,631
16,669,543
169,268,165
400,947,490
206,352,598
972,358,678
The Group does not have financial assets classified as Held-to-Maturity.
C. Financial risk management policies and objectives
As a Group of companies that operates in the domestic and international aviation industry and other
related areas, the Group faces and is strongly affected by various financial risks such as market risk,
liquidity risk, and credit risk. The overall risk management approach is to minimize the effect of such
risks on the Group’s financial performance. The Group’s policy is to use derivatives only for hedging
purposes.
All financial risk management policies must constantly adhere to the following objectives:

To protect the Group’s net revenue against price changes, and when possible to make use of such
price changes as an opportunity to increase profits;

To achieve or do better than the Group’s budget plan;

To limit to a tolerable level the negative impact of price movements on cash flow and profitability.
The Directors review the financial risk management policies periodically.
- 92 -
Market risk management
The Group is exposed to market risk in particular aircraft fuel price risk, currency exchange rate risk and
interest rate.
The Company entered into Fuel Call Option derivative financial instruments to manage its exposure to
aircraft fuel price risk for regular and hajj flight (Note 47).
(i) Aircraft fuel price risk
Aircraft fuel price risk is defined as decline in the value of assets/revenue or increase in the value of
liabilities/expenditures caused by changes in the prices of fuel commodities.
Risk exposure and strategy
The Company’s exposure to aircraft fuel price risk uses market references with 100% floating
prices, with the result that any upward price fluctuations will have a significant impact on
achievement of the Company’s targets. Aircraft fuel expenditure is a major cost component of the
Company’s cost structure, as well as the costs of aircraft leasing and maintenance. Fuel cost
accounts for around 30% to 40% of the Company’s overall operational expense.
Strategy implemented by the Company to minimize the risk of fluctuations in the price increase in
the current year is to use cash flow hedge with a hedge instruments “plain vanilla call option”,
especially for hajj flight. Such risk is anticipated by monitoring the monthly Mark to Market at
maturity date.
Apart from these efforts to reduce price fluctuation risk through hedging transactions, the Company
also constantly strives to ensure that costs are controlled by using fuel efficiently in all flight
operations through effective and efficient use of alternative aircraft and evaluation of current
contracts. These efficiency efforts are set forth in the Company’s work programs.
The aircraft fuel price risk sensitivity analysis is based on the assumption that all other factors, such
as uplifted volume and other costs remain constant. The aircraft price risk analysis is based on
regular and hajj flight contracts that are still outstanding at reporting date.
If the aircraft fuel price had increased (decreased) in price of USD 1 per barrel, as the result of
change in price of fuel, the profit after tax for the nine-month period ended September 30, 2014,
and for the year ended December 31, 2013 and 2012 would increased (decreased) by
USD 8,109,750, USD 5,780,348 and USD 6,030,750.
(ii) Non-functional currency exchange rate risk
Non-functional currency exchange rate risk is defined as decline in the value of assets/revenue or
increase in the value of liabilities/expenditures caused by fluctuation in non-functional currency
exchange rates.
As a world-class airline, the Group requires significant amounts of funds, expenses and investment,
involving both domestic and foreign customers and creditors, with situations in which transactions
are denominated in certain currencies (transactions per currency). Movements in the non-functional
exchange rate against other currencies strongly affect the consolidated financial statements.
The policy currently applied in connection with exchange rate risk is natural (i.e. without hedging),
as follows:
 Group entered cross currency swap (CCS) transaction to minimize the possible risk of
weakening value of the functional currency.
- 93 -
 The Group also takes advantage of opportunities in the market prices of other currencies
(multicurrency) to cover possible risk of weakening value of the functional currency, and vice
versa; thus, in a natural way, the risks of non-functional currency exchange rate movements will
be mutually eliminated/ reduced. Currency transactions are always done with consideration to
the exchange rate favorable to the Group.
 The Group helps manage the risk by matching receipt and payment in each individual currency.
Details of monetary assets and liabilities exposed to foreign exchange risk are set forth in
Note 51.
Following is the sensitivity to a 100 basis point change in exchange rate of functional currency of
U.S. Dollar against significant outstanding non-functional currency as of September 30, 2014 and
2013, December 31, 2013 and 2012, with other variables held constant, of the Group’s profit after
tax. The 100 basis point is the sensitivity rate used when reporting foreign currency risk internally to
key management personnel and represents management's assessment of the reasonably possible
change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign
currency denominated monetary items and adjusts their translation at the period end for a 100
basis point change in foreign currency rates.
Changes in
currency rate
Other functional currency rates
Strenghthening (w eakening)
Rupiah
Yen
AUD
September 30,
2014
(Unaudited)
USD
100 bp
100 bp
100 bp
2,176,351
(140,807)
(119,280)
Effect on profit after tax
September 30,
2013
December 31,
(Unaudited)
2013
USD
USD
517,502
(24,624)
(127,703)
732,783
(95,067)
(165,325)
December 31,
2012
USD
595,163
(159,116)
(372,042)
(iii) Interest rate risk
Interest rate risk is defined as decline in value of assets/revenue or increase in value of
liabilities/expenditures caused by changes in interest rates.
The Group earnings are affected by changes in interest rate, such as changes on interest of shortterm and long-term borrowings, including interest payments for aircraft leasing.
The interest rate references used are floating, i.e. LIBOR for USD loans and the average interest of
government banks for loans in Rupiah. Interest rate movements strongly affect the total amount of
interest expense that must be paid by the Group.
The Group’s policy regarding interest rate risk is to manage exposure in loans with floating interest
rates through an interest rate hedging strategy. As of September 30, 2014, the Company use
interest rate swap in several transaction.
The Group’s financial liabilities that are exposed to interest rate risk are included in the liquidity
table in section iv below.
The sensitivity analysis below had been determined based on the exposure of the financial
liabilities to floating interest rates as of September 30, 2014 and 2013, December 31, 2013 and
2012. The analysis is prepared assuming the amount of the liability outstanding at the end of the
reporting period was outstanding for the whole period, with other variables held constant, of the
Group’s profit after tax.
- 94 -
Changes in
currency rate
Interest rate
Strenghthening (w eakening)
LIBOR
SBI
Effect on profit after tax
September 30,
2013
December 31,
(Unaudited)
2013
USD
USD
September 30,
2014
(Unaudited)
USD
1%
0.5%
559,855
73,126
392,627
5,547
December 31,
2012
USD
423,821
9,220
563,919
11,089
(iv) Liquidity risk
Liquidity risk is defined as the Group’s inability to fulfill its financial liabilities, which in turn makes
the Group unable to take advantage of investment opportunities or unable to meet its short-term
financial liabilities, ultimately leading to default, excessive borrowing, or unfavorable interest rates.
To manage liquidity risk, the Group monitors and maintains a level of cash and cash equivalents
that is considered adequate to finance the Group’s operations and to overcome the impact of cash
flow fluctuations.
The Group also routinely evaluates the projected and actual cash flow, including scheduled
maturity of long-term debts, and continually reviews conditions in the financial markets to take
initiatives to seek funds for working capital. This activity may include obtaining bank loans.
The following table represents the liquidity analysis of financial instruments as of September 30,
2014, December 31, 2013 and 2012 based on exposure on due date on undiscounted contractual
maturities for all non-derivative financial assets and liabilities. The contractual maturity is based on
the earliest date on which the Group may be required to pay:
Weighted
average
effective
interest rate
%
No n-interest bearing
A cco unt receivables
Others receivables
M aintenance reserved fund and security
depo sits
Variable interest rate
Others receivables
Restricted cash
Fixed interest rate
Trade payables
Other payables
A ccrued expenses
Lo ng-term lo ans
Lease liabilities
Fixed interest rate
Lo ng-term lo ans
Lease liabilities
Lo ans fro m banks and financial
institutio n
B o nds payable
To tal
Within
o ne year
USD
-
Over o ne year
but lo nger than
five years
USD
Over than
five years
USD
To tal
USD
4,965,405
152,527,801
5,255,178
-
-
4,965,405
152,527,801
5,255,178
81,883,926
210,324,671
489,224,828
781,433,425
0,1% - 11%
0,1% - 11%
0,51% - 4,25%
254,852,205
1,194,130
6,488,920
-
-
254,852,205
1,194,130
6,488,920
0,1% - 11%
132,853,348
640,020,913
210,324,671
489,224,828
132,853,348
1,339,570,412
258,126,377
25,563,648
158,352,071
-
-
258,126,377
25,563,648
158,352,071
0,9% - 15,98%
1,13% - 8%
252,211,812
4,061,672
502,142,343
17,383,174
24,910,270
21,251,529
779,264,425
42,696,375
0,9% - 15,98%
1,15% - 11,15%
86,239,711
8,924,153
40,972,248
35,897,195
34,721,005
127,211,959
79,542,353
40,873,883
17,673,873
852,027,200
214,270,117
810,665,077
80,882,805
40,873,883
231,943,990
1,743,575,081
-
0,25% - 15,50%
9,25%
- 95 -
December 31, 2013
Weighted
average
effective
interest rate
%
Others receivables
M aintenance reserved fund and security
depo sits
Others receivables
Restricted cash
Fixed interest rate
Trade payables
Other payables
A ccrued expenses
Lo ng-term lo ans
Lease liabilities
Fixed interest rate
Lo ng-term lo ans
Lease liabilities
Lo ans fro m banks and financial
institutio n
To tal
Within
o ne year
USD
Over o ne year
but lo nger than
five years
USD
Over than
five years
USD
To tal
USD
-
2,129,600
139,981,363
7,873,547
-
-
2,129,600
139,981,363
7,873,547
-
225,007,400
228,469,390
202,157,359
655,634,149
0,1% - 11%
0,1% - 11%
0,51% - 4,25%
258,309,586
919,904
3,836,528
62,513
-
258,309,586
919,904
3,899,041
0,1% - 11%
241,080,216
879,138,144
228,531,903
202,157,359
241,080,216
1,309,827,406
206,186,276
16,010,192
160,967,081
-
-
206,186,276
16,010,192
160,967,081
1,15% - 11,15%
1,13% - 8%
308,507,800
42,311,559
252,332,921
41,431,576
5,193,217
-
566,033,938
83,743,135
1,15% - 11,15%
1,13% - 8%
6,237,669
10,957,121
74,906,143
43,632,984
255,369,571
53,417,704
336,513,383
108,007,809
1,15% - 11,15%
41,774,848
792,952,546
412,303,624
313,980,492
41,774,848
1,519,236,662
-
December 31, 2012
Weighted
average
effective
interest rate
%
Others receivables
Others receivables
Restricted cash
Fixed interest rate
M aintenance reserved fund
and security depo sits
To tal
Trade payables
Other payables
A ccrued expenses
Lo ng-term lo ans
Lease liabilities
Fixed interest rate
Lo ng-term lo ans
Lease liabilities
Lo ans fro m banks and
financial institutio n
To tal
Within
o ne year
USD
-
Over o ne year
but lo nger than
five years
USD
Over than
five years
USD
To tal
USD
2,630,585
129,471,098
3,122,588
-
-
2,630,585
129,471,098
3,122,588
269,564,344
220,719
254,147
2,085,806
-
269,564,344
220,719
2,339,953
66,920,131
-
-
66,920,131
193,344,404
665,528,016
137,945,159
140,030,965
143,760,966
143,760,966
475,050,529
949,319,947
174,469,631
16,669,543
169,268,165
-
-
174,469,631
16,669,543
169,268,165
1,32% - 7,58%
1,13% - 8%
136,247,869
53,111,845
325,549,359
86,211,750
-
461,797,228
139,323,595
1,32% - 7,58%
1,13% - 8%
3,116,693
5,469,908
14,474,476
24,418,675
37,140,420
17,591,169
67,029,003
1,32% - 7,58%
5,913,458
564,267,112
450,654,260
37,140,420
5,913,458
1,052,061,792
0,25% -8%
0,25% - 8%
0,51% - 4,25%
0,25% - 8%
0.59%
-
- 96 -
Financing facilities
The Group obtained financing facilities from banks and other financial institution for the Group’s
operational and working capital activities as described in Notes 18, 23 and 24.
Below is the Group’s composition of financing facilities as follows:
September 30,
2014
(Unaudited)
USD
Unsecured financing facilities:
- Amount used
- Amount unused
Total
Secured bank facilities with various
maturity dated through 2014 and
which maybe extended:
- Amount used
- Amount unused
Total
December 31,
2013
USD
December 31,
2012
USD
980,120,872
41,029,194
1,021,150,066
526,527,409
152,438,281
678,965,690
285,017,444
77,096,852
362,114,296
62,391,268
58,417,346
120,808,614
49,431,837
51,161,649
100,593,486
128,679,634
26,482,923
155,162,557
(v) Credit risk
The credit risk faced by the Group is the risk of inability of debtors to fulfill their financial obligations
in accordance with the terms of the agreement.
This exposure derives mainly from:

risk of customers failing to fulfill their obligations,

risk that funds or financial instruments are not transferred by counterparties.
In most cases, sales of passenger ticket and cargo are handled by agents under the influence and
auspices of IATA. These agents are connected with a clearing system for every country for
settlement of passage or cargo sales. Individual agents are audited by certain clearing houses.
The credit risk from sales agents is relatively low. Except when the contract that serves as the basis
for payment stipulates otherwise, claims and liabilities incurred between airlines are normally
settled bilaterally or through the IATA Clearing House. Settlement is mainly done by periodically
offsetting payables and receivables, which significantly reduces the risk of failure to pay.
Transaction counterpart credit risk from investments and derivative financial instruments, arising
from failure to make payments as per the contract, is relatively low because such transactions are
only conducted with parties with a high credit rating.
The Group enters into business relationships only with credible third parties. All transaction
counterparts must be approved in advance by the management before an agreement is made.
Restrictions on transaction counterparts (amounts and periods of loans) must be stipulated for each
transaction counterpart and are reviewed annually by the management. In addition, the outstanding
receivables are continually monitored to reduce exposure to bad debts.
- 97 -
The carrying amount of financial assets recorded in the consolidated financial statements, net any
of allowance for losses represents the maximum credit risk exposure at the reporting date as
follows:
September 30,
2014
(Unaudited)
USD
Trade receivable
Other receivable
M aintenance reserve fund and security
depo sits
Other assets
To tal
December 31,
2013
USD
December 31,
2012
USD
January 1,
2012
USD
December 31,
2011
USD
393,218,124
152,527,801
6,449,848
475,260,630
139,981,363
8,745,081
325,784,942
129,471,098
7,877,613
417,252,577
175,419,781
3,431,179
417,252,577
175,419,781
3,431,179
781,433,425
23,136,774
1,356,765,972
617,623,057
33,164,537
1,274,774,668
461,933,812
31,874,533
956,941,998
328,921,179
29,358,153
954,382,869
328,921,176
29,426,778
954,451,491
The credit risk on liquid funds is limited because the counterparties are banks with high creditratings assigned by credit-rating agencies.
D. Fair Value Estimation of Financial Instruments
Fair value of financial instruments recorded as amortized cost
Except as detailed in the table below, management considers that the carrying amount of financial
assets and liabilities recorded in consolidated financial statements approximate the fair value.
Carrying
amo unt
Fair value
USD
USD
M aintenance reserve fund and security
depo sit
Lo ng-term lo ans
Lease liabilities
B o nd payable
781,433,425
833,748,523
122,238,729
162,701,606
763,034,280
732,564,890
113,838,590
147,830,679
December 31, 2013
Carrying
amo unt
Fair value
USD
USD
617,623,057
604,695,491
191,750,944
162,850,383
601,450,216
601,555,736
184,361,683
139,452,393
December 31, 2012
Carrying
amo unt
Fair value
USD
USD
461,933,812
400,947,490
206,352,598
-
468,028,816
401,518,540
194,935,133
-
Valuation techniques and assumptions applied for the purposes of measuring fair value
The fair values of financial assets and financial liabilities are determined as follows:

The fair values of financial assets and financial liabilities with standard terms and conditions and
traded on active liquid markets are determined with reference to quoted market prices.

The fair values of other financial assets and financial liabilities (excluding those described above)
are determined in accordance with generally accepted pricing models based on discounted cash
flow analysis using prices from observable current market transactions and dealer quotes for similar
instruments.
Specifically, significant assumptions used in determining the fair value of the following financial liabilities
are set out below:
Long-term loan
The fair value of long-term loan at September 30, 2014, December 31, 2013 and 2012 are estimated to
be USD 732,564,890, USD 601,555,736 and USD 401,518,540 with discount rate September 2014 are
estimated as 2.720% - 4.590% in USD and 8.620% - 11.409% in Rupiah.
- 98 -
Lease liabilities
The fair value of lease liabilities at September 30, 2014, December 31, 2013 and 2012 are estimated to
be USD 113,838,590, USD 184,361,683 and USD 194,935,133 using 7.30% - 15.88% discount rates
and interest Libor 3 months.
Bond payable
The fair value of bond payable at September 30, 2014 and December 31, 2013 estimated to be
USD 147,830,679 and USD 139,452,393 using the market interest rate of 12.35% by Indonesian
Government Bond Yield Curve.
47. DERIVATIVE FINANCIAL INSTRUMENTS
Period
Notional
Amount
Cross Currency Swap
Comodity call option
Fuel Hedge
Total
Start
End
September 30,
2014
(Payables)
Receivables
Rp 500,000,000,000
9-May-14
9-May-17
(2,368,245)
USD 32,256,000
Jul-14
Oct-14
49,782
(2,318,463)
Bank Negara Indonesia – Cross Currency Swap
In 2014, the Company signed a cross currency swap contract with Bank Negara Indonesia. The CCS is
designated as cash flow hedge that mitigates the variability in functional currency equivalent cash flows
associated with Indonesia Eximbank loans denominated in IDR currency due to changes in forward rates.
Based on this agreement which is effective starting from May 9, 2014 until May 5, 2017, the terms are such
that each principal and interest payment date, the Company will receive fixed interest rate of 9.25% per
annum on a notional of Rp 500 billion and pay fixed interest rate of 2.58% per annum on notional of
USD 43,241,373.
As of September 30, 2014, the Company recorded the unrealised gain (loss) on cash flow hedge
transaction in other comprehensive income of USD 101,281.
Commodity call option - Fuel Hedge
The Company also entered into fuel hedge derivative transaction to manage impact of aircraft fuel price
increment. The type of hedge relationship is cash flow hedge with the nature of risk being hedge is for
regular flight and hajj fuel price, by setting fuel price at USD 117 for regular flight and at USD 117-118 for
hajj flight. The hedge items are regular flight for the period July to September 2014 and hajj flight costs for
the period September to October 2014. Hedge instrument used by the Company is Platts Jet/Kero Sing –
Asian Close.
As of September 30, 2014 and 2013 and December 31, 2013, 2012 and 2011, the Company incurred loss
on derivative related to commodity call option amounting to USD 2,046,868, USD 4,934,100,
USD 6,528,600, USD 5,361,580 and USD 5,527,950, respectively, representing premium paid on the
derivative transaction.
- 99 -
48. OPERATING LEASE AGREEMENTS
The Group entered into the following operating lease agreements:
1. Aircraft
Lessors
Airline
Gecas (France) SARL
International Lease Finance Corporation (ILFC)
Pembroke Lease France SAS
NAC Aviation France 1 SAS
NAC Aviation France 2 SAS
SMBC Aviation Capital Paris Leasing 1 SARL
AABS Aviation 1 France S.A.R.L
Trojan Aircraft Leasing (France) SARL
ACG Acquisition Ireland III Limited
ACG Acquisition 38884 LLC
ACG Acquisition XX LLC
ALC A332 1288, LCC
ALC B738 41310, LLC
ALC B738 41312, LLC
ALC B738 41322, LLC
ALS France SARL
Avolon Aerospace AOE 86 Limited
Avolon Aerospace AOE 87 Limited
Avolon Aerospace France 10 SAS
Avolon Aerospace France 7 SAS
Avolon Capital Partners France 2 SARL
Awas (France) Two SARL
Awas 1214 S.A.R.L.
Awas 29928 SARL
Awas 29929 SARL
Bali Aircraft Leasing (France) SARL
Bank of Utah
BBAM Aircraft Holding 121 SARL
Biarritz Location S.A.R.L
Bintan Aircraft Leasing (France) SARL
BOC Aviation (France) SARL
- 100 -
Leased Assets
Year of Maturity
1 Boeing 737-800
3 Boeing 737-800
4 Boeing 737-800
3 Boeing 737-800
2 Boeing 737-800
4 Airbus 320-200
2 Airbus 330-200
2 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
2 Boeing 737-800
4 Boeing 737-800
1 Boeing 737-800
2 Bombardier CRJ-1000
2 ATR 72-600
4 ATR 72-600
2 Boeing 737-800
2 Boeing 737-800
2 Boeing 737-800
2 Boeing 737-800
1 Airbus 330-200
1 Airbus 320-200
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Airbus 320-200
1 Airbus 330-200
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
3 Airbus 320-200
1 Airbus 330-300
1 Airbus 330-300
1 Airbus 320-200
1 Boeing 737-800
1 Airbus 320-200
2 Boeing 737-800
1 Airbus 330-200
1 Boeing 737-800
1 Boeing 737-800
1 Airbus 330-200
2 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Airbus 330-200
1 Airbus 330-300
1 Airbus 320-200
2016
2022
2023
2025
2026
2025
2016
2016
2021
2026
2023
2022
2020
2021
2024
2025
2026
2025
2026
2025
2026
2016
2017
2021
2026
2025
2025
2026
2026
2018
2024
2025
2025
2026
2016
2026
2026
2025
2022
2025
2023
2021
2017
2017
2025
2020
2020
2020
2022
2022
2016
2025
2018
Lessors
Airline
Calais Location S.A.R.L.
Centennial Aviation (France) 2, SARL
Centennial Aviation (France) 2, SARL
CIT Aerospace International (France) SARL
FLY 30144 Leasing SARL
FLY 30145 Leasing SARL
Fuyo Aviation France I SARL
Fuyo Aviation France II SARL
Grenoble Location SARL
GY Aviation Lease (France) SARL
ICIL Paris (A Limited Liability Company)
ILFC France SARL
Java Aircraft Leasing (France) SARL
La Victoire 3 Holding SARL
Mitsubishi France S.A.S
MSN 30140 Leasing France SARL
Nice Location SARL
Paris Location SARL
Sailes 4, LLC
Salwa Aircraft Leasing (One) Limited
SARL Masc France
Sky High Aviation XXIX Leasing Company Limited
Sky High Aviation XXXI Leasing Company Limited
Sky High Aviation XXXIII Leasing Company Limited
SMBC Aviation Capital Limited
SMBC Aviation Capital Limited
Sumatra Aircraft Leasing (France) SARL
Wells Fargo Bank Northwest
Whitney France Leasing SARL
Leased Assets
Year of Maturity
1 Boeing 737-800
3 Airbus 320-200
1 Airbus 330-200
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
2 Boeing 737-800
1 Boeing 737-800
2 Airbus 320-200
1 Airbus 330-200
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Boeing 737-800
1 Airbus 330-200
1 Boeing 737-800
2 Boeing 777-300
2 Boeing 777-300
1 Boeing 737-800
2 Boeing 777-300
2 Boeing 320-200
2 Boeing 320-200
2 Airbus 320-200
4 Airbus 320-200
1 Airbus 330-200
1 Airbus 320-200
1 Airbus 320-200
2026
2024
2020
2022
2022
2022
2022
2019
2026
2022
2018
2018
2024
2017
2022
2021
2022
2022
2022
2021
2021
2021
2021
2016
2015
2025
2025
2016
2026
2026
2026
2024
2025
2025
2018
2019
Leased Assets
Year of Maturity
1 Engine Boeing B737-800
1 Engine Airbus A320-200
2017
2021
2022
2020
2014
2015
2. Engine
Lessors
Engine
Engine Lease Finance Corp.
Gecas (France) S.A.R.L
Willis Lease Finance
IHI Corporation
- 101 -
Commitment of operating lease payments
Total rental commitments are as follows:
Within one year
Over one year but not longer than
five years
Over five years
Total
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
January 1, 2012/
December 31, 2011
USD
664,189,237
581,065,537
374,493,616
289,707,603
2,607,893,794
2,982,491,693
6,254,574,724
2,108,428,274
2,333,773,641
5,023,267,452
1,318,832,678
1,131,273,419
2,824,599,713
1,257,480,329
731,915,857
2,279,103,789
Security Deposits
The Group is required to pay security deposits that will serve as guarantee for the payment of the
Company’s obligations. As of September 30, 2014, December 31, 2013, 2012, and 2011 the balance of
the security deposits amounted to USD 163,382,664, USD 144,443,468, USD 111,254,884 and
USD 87,234,810, respectively (Note 11).
Maintenance Reserve Funds
Based on operating lease arrangements for aircrafts, the Company is required to pay maintenance and
repair reserve funds for the leased aircraft to the lessors.
Maintenance reserve funds are based on the use of the aircraft during the lease term consisting of
reserves funds for airframe structure maintenance, engine performance restoration maintenance,
engine life limited parts maintenance, landing gear maintenance and Auxiliary Power Unit (APU)
maintenance.
During the lease term, the Company is obliged to maintain and repair the airframes, engines, APU and
all the parts in accordance with agreed standard. The maintenance and repair work on the airframes,
engines and other part, or engines will be regularly performed by authorized maintenance repair and
overhaul companies (MRO). Based on the lease agreement, the Company will be entitled to its
reimbursement of applicable maintenance and repair reserve funds after the work is completed and the
workshop company releases the airframe, engine, landing gear or APU, by submitting invoices and
proper documentation within certain days after the completion of the work.
Up to the termination date, the Company shall have the obligation to pay contribution into the reserve
funds, and any outstanding reimbursable expenses shall be reviewed and disbursed, provided no
default occurred. Depending on the specific agreements, the lessor may or may not retain the
remaining balance of the maintenance reserve funds.
As of September 30, 2014, December 31, 2013, 2012 and 2011, aircraft maintenance reserve funds
amounted to USD 618,050,761, USD 473,179,589, USD 350,678,928 and USD 241,686,366,
respectively.
Sale and leaseback
The Company recognised deferred income from sale and leaseback of aircrafts. As of September 30,
2014, December 31, 2013, 2012, and 2011, the outstanding deferred income net of the related
amortization amounted to USD 27,527,525, USD 22,720,707, USD 5,014,143 and nil, respectively.
- 102 -
3. Non Aircraft Operating Lease
a. On January 25, 2008, GMFAA entered into Land Utilization and Business Concession Agreements
with PT Angkasa Pura II (Persero) in relation to land utilization measuring approximately 900,000
square meters used for aircraft maintenance business activities in Soekarno-Hatta Airport,
Cengkareng, Tangerang. The term of this agreement is effective until December 31, 2011, with
compensation and concession based on agreed tariffs. GMFAA is obliged to provide bank
guarantee issued by general bank to secure the payment of such compensation. The term of such
guarantee is 1 year and renewable annually until the expiration of the agreement.
b. GMFAA also entered into operating lease agreements of operational equipment, internet
connection, and others with several parties.
c.
The Company entered into an agreement for utilization of 6,246 square meters of land at the
Soekarno-Hatta Airport with PT Angkasa Pura II (Persero), for 30-year period until September 30,
2021. The land is used for the purpose of cargo office building. The compensation for the use of the
land is Rp 800 per square meter per month or a total of Rp 1,798,848,000, which is subject for
review every 5 years. A deposit of 10% or Rp 179,884,800 was also paid. Payment of
Rp 53,965,440 is made annually.
At the expiration of the agreement, the Company will return the land and all the facilities to
PT Angkasa Pura II.
The Company also entered into an agreement with PT Angkasa Pura II (Persero) for the use of
another parcel of land with an area of 164,742 square meters at the Soekarno-Hatta Airport, for a
period of 20 years until December 31, 2011. The Company constructed on such land the office
building. In 2014, the terms of lease period has been amended for 5-year period until December 31,
2016. The compensation for the use of the land is Rp 1,500 per square meter per month or a total
of Rp 247,113,000, which is subject for review every 2 years.
The operating lease agreements contain option to renew the lease term. The Company does not
have an option to purchase the lease asset at the expiry of the lease term. The lease agreements
include certain conditions that may cause the leases to be terminated prior to the expiry of the
lease terms.
Total of other lease commitments is as follows:
September 30,
2014
(Unaudited)
USD
Within one year
Longer than one year not
longer than five years
Over five year
Total
December 31,
2013
USD
December 31,
2012
USD
January 1, 2012/
December 31,
2011
USD
3,588,246
1,940,614
2,460,575
3,922,428
6,126,362
11,640,553
21,355,161
4,997,221
7,583,167
14,521,002
6,356,732
9,616,307
18,433,614
7,061,453
12,299,280
23,283,161
- 103 -
49. COMMITMENTS
a. Purchase of Aircrafts
(i) Boeing 777-300ER Aircraft
Based on Purchase Agreement No. 1938 dated June 4, 1996, which had been amended several
times, most recently by Supplemental Agreement No. 4 dated December 29, 2005, the Company
entered into a contract to purchase 6 Boeing 777-200ER with basic price of USD 198,192,610. The
price of the aircrafts will be determined at the time of delivery by calculating the price adjustments
in accordance with the agreement. Delivery was scheduled within the period of June 2010 up to
August 2011.
However, based on confirmation from The Boeing Company No. 6-1176-DJH-1049R-1, dated
March 30, 2007, the purchase of 6 Boeing 777-200ER was replaced with purchase of 10 Boeing
787 which will be delivered April 2014 up to July 2015. The confirmation is preceded by the
Boeing’s offering to renew the Purchase Agreement No. 1938 into purchase of ten B777200ER/300ER/200LR aircrafts.
In response to the offer, the Company plans to increase the number of units purchased from 6
aircrafts B777-200 into 10 aircrafts B777-300ER by submitting Supplemental Agreement No. 5 to
Purchase Agreement No. 1938. Through Supplemental Agreement No. 9 to Purchase Agreement
No. 1938, the schedule for aircraft delivery was revised from an original date starting August 2012
and changed to May 2013 until January 2016.
In relation with the addition of additional rows in First Class seat on B777 aircrafts which caused a
change in delivery schedule of the first B777 aircraft from May 2013 to June 2013. On April 23,
2012, the Company signed Supplemental Agreement No. 10 to Purchase Agreement No. 1938 with
The Boeing Company.
On May 23, 2012, the Company and The Boeing Company executed Supplemental Agreement
No. 11 to Purchase Agreement No. 1938 with regard to the finalisation of B777 aircraft
configuration.
On July 6, 2012, the Company and The Boeing Company executed Supplemental Agreement
No. 12 to Purchase Agreement No. 1938 with regard to the acceleration of the delivery of B777
aircraft from January 2014 to October 2013, revision of the pricing table and the change of
calculation formula. The Company entered into a sale and leaseback with Alafco, Gugenheim and
ICBC Financial Leasing for 4 aircrafts. The selling price is determined at the time of arrival of
aircraft.
In 2014, 2 of Boeing 777-300ER aircraft under sale and leaseback agreement has been delivered,
with 12 years lease period and classified as operating lease.
As stipulated in SA 12, in 2014 the Company obtained approval from Boeing to transfer its advance
payment for Boeing 777-300ER to Boeing 737-800 MAX of USD 9,695,040. At September 30,
2014, December 31, 2013, 2012 and 2011, the amount of advance for purchase of aircrafts
amounted to USD 116,987,900, USD 219,297,500, USD 279,424,180 and USD 81,032,560
.respectively.
(ii) Boeing 737-800 NG Aircraft
The Company entered into Purchase Agreement No. 2158 dated June 19, 1998 for the purchase of
18 Boeing 737-800, which had been amended several times, most recently by Supplemental
Agreement No. 12 (SA 12) dated September 12, 2014, whereby the Company amended the SA 08
dated January 18, 2010 in relation to purchase of 25 Aircraft Type B 737-800NG with delivery
schedule up to February 2016 and convert With the SA 12. In SA 12, the Company and Boeing
agreed that for 4 Aircraft type B 737-800 NG which delivery on August and December 2015 and
also in January and February 2016 will be cancel in order to convert those aircraft into 737-800
MAX series. The Company order aircraft 737-800 MAX for 50 with schedule delivery from
December 2017 up to May 2023.
- 104 -
In relation to these deliveries, the Company entered into a sale and leaseback with Dubai
Aerospace Enterprise (DAE) for 8 aircrafts and MCAP for 3 aircrafts and Pembroke Lease Finance
SAS for 9 aircrafts. The selling price is determined at the time of arrival of aircraft.
In 2011, 1 of Boeing 737-800 aircraft under sale and leaseback agreement has been delivered, with
10 years lease period and classified as operating lease.
Advance payments for the purchase of aircrafts were made in stages starting from the signing of a
memorandum of understanding until signing of the agreement, ie. 30 or 24 months up to 6 months
prior to aircraft delivery. In, 2014, advance payment made to Boeing 737-800 NG was transferred
as advance payment of Boeing 737-800 MAX in accordance with SA 12 which amounted to
USD 11,772,386. At September 30, 2014, December 31, 2013, 2012 and 2011, the amount of
advance for purchase of aircrafts amounted to nil, USD 9,664,720, USD 14,771,356 and
(iii) Boeing 737-800 MAX Aircraft
On September 12, 2014, the Company signed Supplemental Agreement 12 (SA 12) as amendment
of Purchase Agreement No. 2158 dated June 19, 1998 regarding the purchase of Boeing 737-800
NG aircrafts. Based on SA 12, the scheduled delivery of 4 Boeing 737-800 NG aircrafts arriving in
2015 and 2016 will be cancelled and replaced with 50 units of Boeing 737-800 MAX that will arrive
in 2017 until 2023. The balance of advances for purchase of aircraft for Boeing 737-800 NG as of
September 30, 2014 which amounted to USD 11,772,386 was transferred to Boeing 737-800 MAX.
SA 12 also contemplated the reallocation of certain surplus advance payments made on Boeing
777-300ER aircraft as advance for purchase of aircraft for Boeing 737-800 MAX amounting
USD 9,695,040 as of September 30, 2014.
(iv) Airbus A330-300 Aircraft
On November 4, 1989, the Company entered into a Purchase Agreement with Airbus for the
purchase and delivery of 9 Airbus A 330-300 aircrafts. The Company has received 6 of the aircrafts
but has sought rolling extension for the delivery of the final 3 aircrafts, in which based on a Side
Letter dated December 21, 1995, the final delivery of 3 aircrafts was scheduled in July 1998,
August 1998 and January 1999.
These deliveries have not taken place because the Company has not reached any subsequent
formal agreement with Airbus in relation to its obligation under the Purchase Agreement for the
delivery of the remaining 3 Airbus A330-300 aircrafts. Based on side letter dated November 9,
2009, delivery of the remaining 3 Airbus A330-300 was replaced with 6 Airbus A330-200 with
delivery schedule starting in October 2012 until October 2014.
On July 2011, the Company and Airbus signed Amendment No. 3 related to Purchase Agreement.
Under this agreement, the Company replaced 3 of remaining 6 Airbus A330-200 into A330-300 and
purchased additional 4 Airbus A330-300.
On December 19, 2011, the Company and Airbus signed Amendment No. 4, 5, 6 and amendment
No. 7 and No. 8 on October 2012 and July 2013 to the Purchase Agreement. Under those
agreement the Company purchase 11 (eleven) Airbus aircraft type A330-300 and 3 (three) aircraft
type A330-200F.
The Company entered into a sale and leaseback with Aircastle for 4 aircrafts. The selling price is
determined at the time of arrival of aircraft.
- 105 -
In 2013, 2 Airbus A330-200 aircraft and 1 Airbus A 330-300 aircraft has been delivered which is
under sale and leaseback agreements, with a lease term of 12 years and are classified as
operating leases.
In 2014, 2 Airbus A330-300 aircraft have been delivered which is under sale and leaseback
agreements, with a lease term of 12 years and are classified as operating leases.
Advance payment for purchase of aircrafts were made in stages starting from the signing of the
memorandum of understanding until the signing of the agreement, ie. 30 or 24 months up to 6
months prior to aircraft delivery. At September 30, 2014, December 31, 2013, 2012 and 2011, the
amount of advance for purchase of aircrafts that has been paid amounted to USD 233,664,812,
USD 189,873,807, USD 151,389,855 and USD 61,815,277, respectively.
(v) Purchase of Airbus A320-200 Aircrafts
On August 2, 2011 the Company and Airbus signed an Agreement for the purchase of 25 Airbus
Aircraft type A320-200. Delivery schedule begins in 2014 until 2018. Related to this aircraft
purchase, the Company also signed an agreement with CFM International for the procurement of
engine type CFM56-5B4 for 15 (fifteen) A320-200 aircrafts and engine type Leap-X1A26 for 10
(ten) A320 NEO aircrafts.
In July 2012, the Company and Airbus SAS signed Amendment No. 1 and No. 2 to the Purchase
Agreement of A320 with regards to exercise of an option to increase the number of aircrafts
purchased to 25 aircrafts.
In, 2014, 1 aircraft Airbus A-320-200 has been delivered which is under sale and leaseback
agreements, with a lease term of 12 years and are classified as operating leases.
Advance payment for the purchase of aircrafts were made in stages starting from the signing of the
memorandum of understanding until the signing of the agreement, ie. 30 or 24 months up to 6
months prior to aircraft delivery. At September 30, 2014, December 31, 2013, 2012 and 2011, the
amount of advance for purchase of aircrafts that has been paid amounted to USD 84,011,121,
USD 73,273,288, USD 44,217,895 and USD 24,248,967 respectively.
(vi) Purchase of Bombardier CRJ1000 NextGen Series Aircraft
On December 18, 2011, the Company and Bombardier Aerospace signed a proposal for a firm
commitment to purchase 6 (six) aircrafts and option to purchase 18 (eighteen) CRJ1000 NextGen
Series.
On February 13, 2012, the Company and Nordic Aviation Capital A/S signed “Letter of Intent”
regarding lease of 12 (twelve) CRJ1000 NextGen aircrafts.
Aircraft Lease Agreement as a basis of the implementation of such 12 (twelve) Bombardier
CRJ1000 NextGen aircrafts lease was signed between the Company and Nordic Aviation Capital
A/S on June 19 and June 25, 2012.
Advance for purchase of aircraft were made in stages starting from the signing of the memorandum
of understanding, i.e. 30 or 24 months up to 6 months prior to aircraft delivery. At September 30,
2014, December 31, 2013, 2012 and 2011, the amount of advance for purchase of aircrafts that
has been paid amounted to nil, USD 4,467,371, USD 7,354,133 and USD 300,000, respectively.
- 106 -
(vii) Purchase of ATR 72-600 Aircrafts
On February 7, 2013, PT Citilink Indonesia, a subsidiaries and Avions De Transport Regional G.I.E
(“ATR”) signed Letter of Intent (“LOI”) regarding the purchase of 25 (twenty five) New ATR 72-600
aircrafts and option to purchase up to 25 (twenty five) New ATR 72-600 aircrafts. Delivery schedule
will begin in September 2013 until December 2015 for purchased aircrafts, and February 2016 until
August 2018 for option aircrafts. On February 15, 2013, PT Citilink Indonesia, a subsidiary, has
paid USD 2,418,000 as pre-delivery payment.
On September 6, 2013, the ownership of the aircraft purchase agreement has been transferred to
PT Garuda Indonesia. At September 30, 2014 and December 31, 2013, the amount of advance for
purchase of aircrafts that has been paid amounted to USD 2,418,000, respectively.
(viii) Purchase of flight simulator ATR 72-600
On April 25, 2014, the Company and CAE Inc. entered into ATR 72-600 full flight simulators with
visual system agreement. The total purchase price amounting to USD 8,223,000 and will be paid
based on the pre delivery payment (PDP) schedule.
On March 16, 2015, the ATR72-600 simulator is planned to delivery for installation process and will
be certified in May 2015 and is expected to be ready for training.
b. Component Pooling Agreement with SR Technics Switzerland ("SR Technics")
The Company entered into a component pooling agreement for A-330 with SR Technics. As a
participant to the A-330 pool, the Company is allowed to use A-330 components which are available in
the main storage at Zurich. The Company also has the right to ask SR Technics to provide temporary
services, field assistance team or other special services, as well as technical and administrative training
in the Company's maintenance facility in Jakarta or in any other line stations of SR Technics.
This agreement has been extended several times with the latest amendment, relating to each party
may cancel the agreement by giving to the other party 6 months notice. The corresponding pooling
expense is determined according to the tariff applied to the components used.
The Company also entered into a critical spare component agreement for Boeing 737-800 aircraft
component with SR Technics with memorandum of Understanding dated February 25, 2011.
The Company also has the right to ask SR Technics to perform test repair, overhaul and modification of
the component.
c.
Service Agreement for Passenger Service Systems
On April 20, 2012, the Company and Amadeus IT Group, S.A, signed Service Agreement for Passenger
Service Systems, for “Amadeus Altéa” Passenger Services Systems (PSS). This system is a platform
system which is used by airlines which are members of “Sky Team” global alliance, so that Garuda
system shall be connected with other Sky Team members.
d. Agreements with Rolls Royce.
In July 2012, the Company and Rolls Royce executed the following agreements:
(i). Product Agreement relating to Trent 772B and Trent 772C engines DEG 6159.
(ii). Supplementary Financial Assistance Agreement relating to Trent 772B and Trent 772C engines
DEG 6734.
(iii). Total Care Service Agreement relating to Trent 772B engines DEG 6584.
(iv). Thrust Upgrade Offer agreement with regards to Airbus offer on thrust upgrade.
- 107 -
The above-mentioned agreements are related to engine maintenance with prognostic maintenance
concept for TRENT 700 engine type (engine Airbus A330), where the engine treatment method is
performed in its entirety from start of monitoring engine during operation (on-wing Health Monitoring) to
engine overhaul planning and execution overhaul.
e. Agreement for installing galley in A330-200
The Company entered into an agreement with BE Aerospace with regards to galley installation on
Airbus 330-200 aircraft. The Company also entered into General Terms Agreement For The Purchase
Of Aircraft Galley Installation For 3 X A330 BFE Program with Driessen Aircraft Interiors Systems
(Europe) BV regarding the purchase of aircraft galley for 3 (three) Airbus 330 aircrafts with a value of
EUR 938,050 per aircraft. Installation period of galley for A330-200 is up to before on dock date as
specified by Airbus in 2013.
f.
Agreement with General Electric (GE).
In June 2012, the Company executed General Terms Agreement with GE related to spare part, tooling,
publication, training regarding engine model GE90-115B and CF34-8C.
g. The Sub-distribution Agreement with Abacus International Pte., Ltd
ADSI, a subsidiary, entered into the sub-distribution agreement with Abacus International Pte., Ltd
(formerly Abacus Distribution Systems Pte., Ltd), Singapore (AIPL) effective since April 11, 1995. Under
this agreement, AIPL grants ADSI an exclusive sub-license to operate its own marketing and
distribution of computer reservation systems (Abacus Systems) in Indonesia territory. This system
incorporate a software package which performs various function, including real-time airline seat
reservation, schedules/booking for a variety of air, car and hotel service, automated ticketing and fare
display. The agreement shall remain valid, except for early termination as stipulated in the agreements.
In return for each net booking made by a subscriber through the Abacus Systems for any travel product
offered in the system, AIPL shall pay a certain fee to ADSI as stipulated in the agreement.
Effective from February 1, 2009, such fee is at 25% of the 2009 basic rates payable by airline per net
segment for air bookings made by subscribers after deducting certain expenses as stipulated in the
agreement.
h. GMFAA entered into a long-term contract for maintenance and repair of aircrafts
GMFAA entered into a long-term contract for maintenance and repair of aircraft with PT Sriwijaya Air,
Hellenic Imperial Airways, Yemen Airways, International Air Parts Pty Ltd, Gatewick Aviation Service,
and Southern Air. GMFAA earns revenue for these services according to rates agreed in the contract.
i.
GMFAA entered into an agreement with PT Bank Syariah Mandiri
On December 16, 2013, GMFAA entered into an agreement with PT Bank Syariah Mandiri regarding
Ijarah Muntahia Bit - Tamlik facility with terms of 8 years. This facility is used for the rental of test cell
equipment for maintenance and overhaul of Industrial Gas Turbine Engine (IGTE) Oil Company.
GMFAA obtained a facility with maximum credit of USD 9,562,955.
- 108 -
50. CONTINGENCIES
a. On December 17, 2007, the Company has received a Notice to Furnish Information and Produce
Document from Australian Competition and Commerce Commission (“ACCC”) related to allegation of
price fixing cartel on Cargo Fuel Surcharge with other international carriers. Currently, the case is still
under examination by Federal Court of Australia.
The legal proceeding of this case in the Federal Court of New South Wales, Australia, commenced from
October 22, 2012 until May 15, 2013 with various agenda including revision of the claim from ACCC,
defense from the Company, collection of evidence and witnesses. Final hearing was held on May 15,
2013 with delivery of conclusion from each party as the agenda.
In the final hearing, the Company has submitted a defense based on terms in the Aviaton Laws,
International Treaty Law through the Air Service Agreement (ASA) and International Competition Law
related to the relevant market. Currently, the Company is waiting for decision from the Federal Court of
New South Wales, Australia, which according to estimates will be decided within 3 (three) to 6 (six)
months after the Final Hearing date of May 15, 2013.
On October 31, 2014, Federal Court of Australia, New South Wales District issued a decision that the
lawsuit from ACCC against the Company is rejected. On this matter, ACCC has time until
December 19, 2014 to write a submissions.
b. On August 4, 2010, Hutomo Mandala Putera ("Tommy Suharto") submitted a claim against several
defendants, including the Company, in relation to the article published by in-flight magazine, Majalah
Garuda, December 2009 edition.
Tommy Suharto submitted a claim to the South Jakarta District Court and demanded payment for
material and immaterial damages, as well as an apology from the Defendants, published in Majalah
Garuda and several other national media. The Company has filed an objection to High Court of DKI
Jakarta on June 1, 2011. The Company has also filed an objection memory to South Jakarta District
Court on August 19, 2011.
On March 11, 2013, the Company received a notice of DKI Jakarta High Court dated October 24, 2012
which upheld the verdict from South Jakarta District Court which was in favor of Tommy Suharto over
the Company.
On March 22, 2013, the Company has declared an appeal to the Supreme Court of the Republic of
Indonesia through the South Jakarta District Court and has also submitted cassation on April 3, 2013.
The case is currently in the review process at the level of the Supreme Court of the Republic of
Indonesia.
c.
On January 2012, Al-Azhar Hotel submitted an amended statement of claim against the Company
which was filed on June 14, 2009 at Jeddah District Court, Saudi Arabia in relation to the allegation of
breaching the contract on hajj pilgrims’ accommodation in the event of irregular flight. Al-Azhar Hotel
claimed the payment of its invoice together with the loss against the Company in the amount of
SAR 750,040 plus the legal cost in the amount of SAR 100,000.
In its amended statement of claim, Al-Azhar Hotel amended the amount of the claim to SAR 10,905,355
plus the legal cost in the amount of SAR 100,000. Currently, the case is still under examination by
Jeddah District Court, Saudi Arabia.
- 109 -
51. MONETARY ASSETS AND LIABILITIES IN FOREIGN CURRENCY
At September 30, 2014, December 31, 2013, 2012 and 2011, the Group had monetary assets and liabilities
denominated in foreign currencies (currencies other than USD are stated at the equivalent USD) as follows:
Sept ember 30, 2014 (Unaudit ed)
December 31, 2013
December 31, 2012
December 31, 2011
Currencies
Equivalent
Currencies
Equivalent
Currencies
Equivalent
Currencies
Equivalent
ot her t han USD
in USD
ot her t han USD
in USD
ot her t han USD
in USD
ot her t han USD
in USD
ASSETS
Cash and cash equivalent s
IDR
1,979,467,565,528
162,092,005
3,231,292,547,897
265,099,069
719,893,472,822
74,446,068
2,396,260,327,482
264,254,558
CNY
172,244,352
27,995,843
128,573,616
21,088,383
91,531,884
14,552,907
67,676,585
10,740,274
AUD
12,813,995
11,180,211
21,100,810
18,827,232
13,192,903
13,678,402
14,877,065
15,098,014
JPY
20,914,447
19,130,536
1,326,743,392
12,644,695
1,173,991,125
13,593,379
536,095,354
6,905,340
EUR
7,335,374
9,307,126
5,133,972
7,085,143
3,512,104
4,652,488
1,282,115
1,659,762
KRW
1,235,252,695
1,169,302
5,111,714,507
4,841,640
4,124,406,743
3,851,437
3,101,233,333
2,791,110
SGD
5,975,538
4,690,193
3,884,316
3,068,188
2,524,249
2,064,078
1,210,433
930,961
HKD
11,368,394
1,464,170
20,285,983
2,616,116
11,329,654
1,461,584
-
-
SAR
17,434,933
4,648,133
9,404,316
2,507,521
7,206,210
1,921,528
-
-
GBP
2,476,261
4,022,190
1,008,917
1,663,453
637,349
1,026,833
704,353
1,085,056
Ot her f oreign currencies *)
4,704,067
4,704,067
5,737,320
5,737,320
4,300,803
4,300,803
7,928,557
7,928,557
IDR
866,830,718,560
70,981,880
666,403,077,878
54,672,498
770,584,890,809
79,688,200
456,645,147,024
50,357,868
JPY
9,433,533
8,628,853
925,097,821
8,816,761
955,574,778
11,064,385
778,309,690
10,040,195
AUD
8,047,880
7,021,775
4,552,683
4,062,138
2,972,038
3,081,409
5,573,938
5,656,990
EUR
3,076,572
3,903,554
3,012,629
4,157,581
1,869,355
2,476,335
3,063,377
3,965,848
KRW
3,893,238,452
3,685,378
2,822,687,445
2,673,552
4,696,012,961
4,385,212
2,312,323,333
2,081,091
SGD
3,029,619
2,377,948
961,651
759,599
237,054
193,838
690,402
530,988
SAR
7,020,914
1,871,767
6,560,341
1,749,217
2,333,959
622,233
3,165,507
844,095
CNY
9,877,998
1,605,527
12,422,966
2,037,590
8,452,992
1,343,965
1,299,075
206,173
MYR
4,091,403
1,249,287
4,285,423
1,303,554
3,987,888
1,303,023
908,694
285,888
7,870,318
7,870,317
6,196,828
6,196,828
4,507,655
4,507,655
11,202,471
11,202,471
57,171,903,751
4,681,617
40,622,003,488
3,332,677
39,326,263,796
4,066,832
31,113,931,172
3,431,179
275,381
275,381
141,585
141,585
152,047
152,047
-
-
174,277,047,585
14,270,967
189,843,027,033
15,574,947
50,082,341,820
5,179,146
24,448,370,820
2,696,115
Trade account receivable
Ot her account s receivable
IDR
Prepaid t axes
IDR
IDR
Ot her asset s
EUR
EUR
572,436
726,307
7,963,654
10,990,248
7,267,368
9,627,083
7,999,698
10,356,409
IDR
IDR
41,771,968,967
3,420,567
21,935,209,702
1,799,591
32,375,036,647
3,347,987
32,848,886,824
3,622,506
AUD
AUD
1,594,833
1,391,494
1,590,813
1,419,406
1,272,332
1,319,154
1,265,435
1,284,290
SGD
SGD
268,715
210,914
243,586
192,406
245,096
200,415
233,728
179,760
1,996,815
1,996,815
1,963,439
1,963,439
2,942,272
2,942,272
3,178,571
3,178,571
Tot al Asset s
386,574,124
467,022,377
- 110 -
271,050,698
421,314,069
Sept ember 30, 2014 (Unaudit ed)
December 31, 2013
December 31, 2012
December 31, 2011
Currencies
Equivalent
Currencies
Equivalent
Currencies
Equivalent
Currencies
Equivalent
ot her t han USD
in USD
ot her t han USD
in USD
ot her t han USD
in USD
ot her t han USD
in USD
LIABILITIES
Loans f rom banks and
f inancial inst it ut ion
IDR
(12,449,809,771)
(1,019,473)
(7,368,853,002)
(604,549)
(6,706,986,290)
(693,587)
(5,797,997,739)
(639,391)
IDR
(1,676,248,399,369)
(137,262,397)
(1,356,073,695,683)
(111,253,893)
(1,083,280,753,990)
(112,024,897)
(581,320,057,662)
(64,106,755)
JPY
(3,416,969)
(3,125,502)
(361,400,270)
(3,444,371)
(213,128,485)
(2,467,767)
(175,159,561)
(2,256,196)
SGD
(3,136,791)
(2,462,067)
(3,605,295)
(2,847,791)
(4,841,206)
(3,958,654)
(3,217,574)
(2,474,681)
SAR
(6,249,845)
(1,666,201)
(4,001,340)
(1,066,898)
(8,601,193)
(2,293,078)
(4,387,978)
(1,170,037)
EUR
(1,447,928)
(1,837,132)
(746,711)
(1,030,500)
(1,903,075)
(2,521,003)
(1,825,912)
(2,363,736)
AUD
(2,128,147)
(1,856,808)
(999,639)
(891,930)
(75,489)
(78,267)
(412,800)
(418,931)
KRW
(5,880,965)
(5,567)
(574,049,407)
(543,720)
(2,279,448,692)
(2,128,585)
(302,434,738)
(261,479)
Ot her f oreign currency *)
(7,968,565)
(7,968,564)
(8,124,003)
(8,124,003)
(5,974,547)
(5,974,547)
(4,129,031)
(4,129,031)
Trade account s payable
Ot her account s payable
EUR
(879,266)
(1,115,613)
(2,278,469)
(3,144,403)
(2,915,781)
(3,862,535)
(2,985,822)
(3,865,445)
IDR
(49,207,748,346)
(4,029,459)
(5,846,115,727)
(479,622)
(4,557,809,450)
(471,335)
(28,575,353,027)
(3,151,230)
(120,431)
(120,431)
(9,890,367)
(9,890,367)
(4,466,488)
(4,466,488)
(3,941,132)
(3,941,132)
IDR
(1,038,564,555,550)
(85,044,592)
(729,088,584,802)
(59,815,291)
(806,287,336,610)
(83,380,283)
(338,529,768,640)
(37,332,352)
JPY
(547,403,553)
(5,007,124)
(598,981,329)
(5,708,667)
(333,993,094)
(3,874,320)
(41,061,021)
(528,907)
AUD
(4,484,642)
(3,912,856)
(4,221,017)
(3,766,210)
(3,367,246)
(3,491,161)
(273,690)
(277,768)
EUR
(216,634)
(274,865)
(1,067,748)
(1,473,547)
(2,369,438)
(3,138,794)
(285,293)
(369,340)
SGD
(195,537)
(153,477)
(645,040)
(509,512)
(489,349)
(400,141)
(100,588)
(77,362)
MYR
(128,479)
(39,230)
(763,927)
(232,374)
(2,606,930)
(851,684)
(41,132)
(12,940)
(12,459,520)
(12,459,520)
(10,035,319)
(10,035,319)
(14,514,212)
(14,514,212)
(39,894,673)
(39,894,673)
(1,998,370,487,380)
(163,639,902)
(1,324,997,201,092)
(108,704,340)
(519,616,914,490)
(53,734,945)
(503,877,283,047)
(54,025,154)
(20,167)
(20,909)
(59,228)
(60,110)
Accrued expenses
Long t erm loans
IDR
AUD
-
-
-
-
1,986,912,012,472
162,701,606
(1,984,983,313,024)
(162,850,383)
(1,550,880,769,520)
(126,996,460)
(1,569,249,044,373)
(128,743,051)
(1,479,385,382,710)
Bond
IDR
-
-
-
-
Employment benef it obligat ion
IDR
(152,987,113)
(1,416,752,445,980)
(156,236,485)
Ot her non-current liabilit ies
IDR
(1,565,945,360)
(128,230)
(15,415,250,584)
(1,264,685)
(8,989,480,360)
(929,629)
(9,925,483,993)
(1,094,562)
CNY
(8,180,000)
(1,329,541)
(7,380,000)
(1,210,453)
(6,750,000)
(1,073,202)
(6,700,000)
(1,063,290)
SGD
(209,087)
(164,112)
(170,000)
(134,281)
(160,000)
(130,831)
(230,679)
(177,415)
(300,000)
(300,000)
(62,062)
(62,062)
(10,320)
(10,320)
Tot al Liabilit ies
Liabilit ies - net
(399,217,517)
(627,832,222)
(459,478,287)
(11,975,129)
(160,809,845)
(188,427,589)
-
(379,928,402)
41,385,667
*) Assets and liabilities denominated in other currencies are presented into its USD equivalent using the
exchange rate prevailing at end of reporting date.
The conversion rates used by the Group on September 30, 2014, December 31, 2013, 2012 and 2011,
were as follows:
September 30,
2014
December 31,
December 31,
December 31,
(Unaudited)
2013
2012
2011
USD
USD
USD
USD
Currencies
IDR 1
0.0001
0.0001
0.0001
0.0001
EURO 1
1.2688
1.3801
1.3247
1.2946
YEN 100
0.9147
0.9531
1.1579
1.2881
SGD 1
0.7849
0.7899
0.8177
0.7691
AUD 1
0.8725
0.8923
1.0368
1.0149
GBP 1
1.6243
1.6488
1.6111
1.5405
- 111 -
52. OPERATING SEGMENT
The Group’s reportable segments under PSAK 5 (revised 2009) are based on their operating divisions
namely flight operations and aircraft maintenance services. Flight operations segment provides domestic
and international flight services. Aircraft maintenance segment provides aircraft maintenance services of
both for the Company aircraft and others. Business segments that individually do not exceed 10% of the
Company's operating revenues are presented as others.
Income and expenses include the inter segment transaction.
Flight o peratio n
USD
services
USD
To tal befo re
Other o peratio ns
eliminatio n
USD
USD
Eliminatio n
USD
To tal
USD
Segment Result
External
Intersegment Revenue
Net Revenue
2,632,011,528
5,332,886
2,637,344,414
44,797,405
144,634,305
189,431,710
124,874,174
183,746,306
308,620,479
2,801,683,107
333,713,497
3,135,396,603
(333,713,497)
(333,713,497)
2,801,683,107
2,801,683,107
External
Intersegment Expense
Net Expense
2,634,158,515
281,739,711
2,915,898,226
163,855,840
4,943,206
168,799,046
254,017,816
47,030,580
301,048,397
3,052,032,171
333,713,497
3,385,745,669
(333,713,497)
(333,713,497)
3,052,032,171
3,052,032,171
(278,553,812)
20,632,664
7,572,082
(250,349,066)
Segment Result
-
(250,349,066)
Unallo cated inco me (expenses)
428,570
8,971,008
(57,837,321)
(298,786,809)
Equity in net inco me o f asso ciates
Finance inco me
Finance co st
Lo ss befo re tax
79,280,357
Tax benefits
(219,506,452)
13,116,468
(206,389,984)
Net inco me fo r the perio d
To tal o ther co mprehensive lo ss
To tal co mprehensive inco me
FINA NCIA L P OSITION
Segment assets
Segment liabilities
Segment depreciatio n and amo rtizatio n
3,102,972,817
242,654,385
405,826,823
2,103,820,507
112,347,800
136,951,008
2,065,252
156,740,215
7,837,262
- 112 -
3,751,454,025
2,397,511,730
122,250,314
588,743,627
272,969,944
-
3,162,710,398
2,124,541,786
122,250,315
December 31, 2013
To tal befo re
Other o peratio ns
eliminatio n
USD
USD
Flight o peratio n
USD
services
USD
Segment Result
External
Net Revenue
3,459,634,057
4,898,444
3,464,532,501
68,308,243
161,985,900
230,294,143
188,134,286
201,032,997
389,167,283
3,716,076,586
367,917,341
4,083,993,927
(367,917,341)
(367,917,341)
3,716,076,586
3,716,076,586
External
Net Expense
3,147,218,069
298,403,411
3,445,621,480
192,364,204
10,710,752
203,074,956
320,046,038
58,803,178
378,849,216
3,659,628,311
367,917,341
4,027,545,652
(367,917,341)
(367,917,341)
3,659,628,311
3,659,628,311
18,911,021
27,219,187
10,318,067
56,448,275
Segment Result
Eliminatio n
USD
To tal
USD
-
56,448,275
Equity in net inco me o f asso ciates
Finance inco me
Finance co st
Inco me befo re tax
1,860,416
10,347,000
(59,840,088)
8,815,603
Tax benefits
Net inco me fo r the year
To tal o ther co mprehensive lo ss
To tal co mprehensive inco me
2,384,777
11,200,380
(10,634,860)
565,520
Segment assets
Segment liabilities
1,811,945,935
140,787,926
192,023,929
99,401,935
5,113,537
Flight o peratio n
USD
services
USD
Segment Result
External
Net Revenue
3,228,377,846
2,970,216
3,231,348,062
56,837,495
154,800,219
211,637,714
187,253,621
174,213,295
361,466,916
3,472,468,962
331,983,730
3,804,452,692
(331,983,730)
(331,983,730)
3,472,468,962
3,472,468,962
External
Net Expense
2,823,243,238
266,669,642
3,089,912,880
188,903,585
5,463,011
194,366,597
292,250,035
59,851,077
352,101,112
3,304,396,858
331,983,730
3,636,380,588
(331,983,730)
(331,983,730)
3,304,396,858
3,304,396,858
141,435,183
17,271,117
9,365,804
168,072,104
Segment Result
2,905,588,278
360,136,620
114,233,170
15,383,571
3,457,748,827
2,025,581,040
161,285,034
December 31, 2012
To tal befo re
Other o peratio ns
eliminatio n
USD
USD
(503,963,875)
(188,944,205)
-
Eliminatio n
USD
2,953,784,952
1,836,636,835
161,285,034
To tal
USD
-
168,072,104
Equity in net inco me o f asso ciatio n
Finance inco me
Finance co st
1,927,546
6,755,823
(25,224,919)
Inco me befo re tax
Tax expense
151,530,554
(40,687,981)
Inco me fo r the perio d
110,842,573
To tal o ther co mprehensive inco me
To tal Co mprehensive Inco me
34,566,735
145,409,308
Segment assets
Segment liabilities
2,466,798,331
1,346,572,609
63,739,015
167,483,388
97,836,455
41,329,981
- 113 -
399,074,367
132,876,443
24,887,638
3,033,356,086
1,577,285,507
129,956,634
(515,358,320)
(174,247,819)
-
2,517,997,766
1,403,037,688
129,956,634
December 31, 2011
To tal befo re
Other o peratio ns
eliminatio n
USD
USD
Flight o peratio n
USD
services
USD
Segment Result
External
Net Revenue
2,906,686,669
3,631,320
2,910,317,989
52,950,058
132,909,400
185,859,458
136,691,678
109,117,631
245,809,309
3,096,328,405
245,658,351
3,341,986,756
(245,658,351)
(245,658,351)
3,096,328,405
3,096,328,405
External
Net Expense
1,750,918,352
1,715,891
1,752,634,242
248,166,722
131,729,184
379,895,905
1,004,895,743
112,213,277
1,117,109,020
3,003,980,817
245,658,351
3,249,639,168
(245,658,351)
(245,658,351)
3,003,980,817
3,003,980,817
Segment Result
1,157,683,747
(194,036,447)
(871,299,711)
Eliminatio n
USD
92,347,588
To tal
USD
-
92,347,588
Equity in net inco me o f asso ciatio n
Finance inco me
Finance co st
1,648,960
22,738,090
(19,801,370)
Inco me befo re tax
Tax expense
96,933,268
(32,707,732)
Inco me fo r the perio d
64,225,536
To tal o ther co mprehensive inco me
To tal Co mprehensive Inco me
8,475,080
72,700,616
Segment assets
Segment liabilities
2,005,248,970
1,083,436,763
77,409,864
151,409,683
92,509,429
39,051,249
250,685,518
82,309,245
17,372,251
2,407,344,171
1,258,255,437
133,833,364
(279,373,977)
(98,046,404)
-
2,127,970,194
1,160,209,033
133,833,364
In September 2013, the Company made adjustments to its organizational structure mainly the division of
domestic and international region, in order for “Region” or “Area” to be more focused to manage and
increase sales in the future.
Changes to “Organizational Structure of Parent Company” established four (4) domestic regions and five
(5) international regions.
The following is the total operating revenue of each region based on its Central Region:
September 30,
2014
(Unaudited)
USD
Total revenue based on
geographical segment
Domestic
Jakarta
Surabaya
Makassar
Medan
International
Tokyo
Sydney
Amsterdam
Shanghai
Singapore
Total
December 31,
2013
USD
December 31,
2012
USD
December 31,
2011
USD
1,609,803,578
255,049,269
175,911,529
143,120,642
2,103,500,564
359,680,298
244,148,350
212,353,570
1,836,305,501
368,672,074
271,599,353
199,765,665
1,778,708,735
259,864,845
200,669,978
164,849,377
303,519,661
108,624,103
87,806,520
66,091,706
51,756,099
2,801,683,107
383,075,384
163,148,281
95,429,002
80,227,194
74,513,943
3,716,076,586
389,705,145
180,078,582
83,710,929
74,546,305
68,085,408
3,472,468,962
332,092,901
160,675,920
87,609,311
53,897,180
57,960,158
3,096,328,405
- 114 -
53. QUASI-REORGANIZATION
As a result of adverse economic condition in Indonesia since the middle of 1997 and other negative factors,
the Company has accumulated deficit totaling to USD 1,385,459,977 as of January 1, 2012. The Company
stockholders’ had approved to carry out a quasi-reorganization in order to eliminate the accumulated losses
as of January 1, 2012, in accordance with PSAK No. 51 (revised 2003). Moreover, the Company proposed
a reduction of par value per share from 500 to 459, without reducing the number of shares; thereby creating
additional paid-in capital of USD 459,852 as of January 1, 2012.
In accordance with regulation, both the quasi-reorganization and reduction of par value of shares of the
Company should be approved by the Company’s stockholders and Minister of Justice and Human Rights
before they became effective. Based on the Shareholders’ Extraordinary General Meeting Deed No. 1
dated June 28, 2012 of Aulia Taufani, S.H., the stockholders’ approved the quasi-reorganization as of
January 1, 2012 and the reduction of par value per share to effect the quasi-reorganization. This deed was
approved by the Ministry of Justice and Human Rights in his decision letter No. AHU-66159.AH.01.02.
Tahun 2012 dated December 27, 2012. Further, the Company had obtained approval from the President of
the Republic of Indonesia as stated in the Indonesia Government Regulation No. 114 Year 2012 dated
December 27, 2012, which is published in State Gazette of the Republic of Indonesia No, 287 in 2012.
Accordingly, the Group revalued its opening consolidated statement of financial position at January 1, 2012,
to fair value which was determined by an independent appraiser. The fair value adjustment resulted in
USD 44,963,385 revaluation increase of assets. The assets principally affected by the fair value
adjustments and the amount of such adjustments are as follows:
Revaluation
increase
USD
Appraisal
Inventories
Maintenance reserve funds and securities deposits
Investment in associates
Other financial assets
Property and equipment
Other assets - net
Total
KJPP
KJPP
KJPP
KJPP
KJPP
KJPP
Doli
Doli
Doli
Doli
Doli
Doli
Siregar &
Siregar &
Siregar &
Siregar &
Siregar &
Siregar &
Rekan
Rekan
Rekan
Rekan
Rekan
Rekan
7,315,622
11,923,653
522,676
1,141,984
23,989,249
70,201
44,963,385
No adjustment was made to the value of liabilities as of January 1, 2012, because the carrying amount prior
to quasi-reorganization has already reflected their fair value.
Through the quasi-reorganization, the Company eliminated the balance of its accumulated losses as of
January 1, 2012 of USD 1,385,459,977, against the following equity components:
USD
Accumulated losses
Difference on revaluation assets and liabilities
Share option
Other component of equity revaluation surplus
Additional paid-in capital
Issued and paid-up capital
Total
(1,385,459,977)
44,963,385
2,278,677
83,793,914
108,518,998
1,145,905,003
-
- 115 -
The above quasi-reorganization is the first of a series of steps which the Company will take in its effort to
sustain its ability to continue as a going concern while also achieving sustainable long-term growth. The
management and shareholders of the Company believed and continue to believe that the Company has
good future business prospects, as outlined in the long-term business plan of the Company.
54. OTHER SIGNIFICANT INFORMATION
On June 30, 2014, the Company entered into a letter of intent with PT Angkasa Pura I (Persero) to acquire
additional 21.25% interest in PT Gapura Angkasa (“Gapura”) owned by PT Angkasa Pura I (Persero) at a
price of Rp 229,779 per share or equivalent to Rp 105 billion. Gapura is currently an associate of the
Company and with this acquisition the ownership of the Company in Gapura will become 58.75%.
Gapura is a provider of ground handling services for flight operations.
As of September 30, 2014, the Purchase and Sale agreement is not yet effective.
55. NON CASH TRANSACTIONS
For the nine month periods ended September 30, 2014 and the years ended December 31, 2013, 2012,
and 2011, the Group has investment and financing transactions that did not affect cash and cash
equivalents and hence not included in the consolidated statements of cash flows with details as follows:
NONCA SH INVESTING A ND FINA NCING
A CTIVITIES
Increase in fixed asset thro ugh estimated
liabilities fo r aircraft return and
maintenance co st (No te 25)
Increase (decrease) o f pro perty and equipment
thro ugh revaluatio n surplus (No te 14)
Increase (decrease) in pro perty and equipment
due to transactio n adjustment (No te 14)
Increase in pro perty and equipment thro ugh
trade acco unt payable (No te 14)
lease liabilities
advance payment fo r purchase aircrafts
September 30,
2014
(Unaudited)
USD
December 31,
2013
USD
December 31,
2012
USD
44,417,473
33,946,760
19,052,718
7,688,594
9,047,138
36,328,608
4,378,191
4,378,191
161,541
(101,820)
(101,820)
2,601,855
434,973
434,973
(86,017)
(115,250,264)
January 1,
2012
USD
December 31,
2011
USD
13,565,142
13,565,142
26,295,798
99,016,609
21,834,061
1,374,707
-
-
-
28,466,000
-
-
-
-
56. MANAGEMENT RESPONSIBILITY AND APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS
The preparation and fair presentation of the consolidated financial statements on pages 6 to 116 were the
responsibilities of the management, and were approved by the Directors and authorized for issuance on
November 12, 2014.
****
- 116 -

PT. GARUDA INDONESIA (PERSERO) Tbk AND ITS SUBSIDIARIES

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