Cost Reduction
Optimizing accounting workflows associated with manual data processing and excessive labor.
Reduction in Human Error
Eliminating reliance on manual, Excel-based calculations and ensuring high precision across all NPV calculations and journal entries.
Daily Time Savings
Transforming complex, high-volume manual accounting challenges into an efficient, automated process.
Client Profile
PT Telkom Indonesia (Persero) Tbk (Telkom) is the largest State-Owned Enterprise (SOE) in Indonesia, focusing on information and communication technology (ICT) and telecommunications networks. As the parent company of the Telkom Group, it serves millions of customers across the archipelago with a comprehensive portfolio of services, including cellular and fixed-line connectivity, internet and data communication, as well as various digital services such as data centers, cloud computing, and IoT. Telkom’s shares are publicly traded on the Indonesia Stock Exchange (IDX: TLKM) and the New York Stock Exchange (NYSE: TLK), cementing its status as a major player in the global telecommunications industry.
Challenges
The implementation of PSAK 73, Indonesia’s new lease accounting standard (converged with IFRS 16), presented significant regulatory and operational challenges. This new standard fundamentally changes the accounting treatment for leases, requiring lessees to recognize most leases on their balance sheets as right-of-use (ROU) assets and corresponding lease liabilities.
NPV Recalculation
Recalculating the Net Present Value (NPV) for all existing (“Transition”) and new lease contracts.
Complex Calculation Scenarios
Managing various intricate calculation scenarios (e.g., Transition vs. New contracts, Lessee vs. Lessor, Advance vs. Arrears payments, Fixed vs. Fixed-in-Substance payment types, and One-Time-Payments).
Journal Readjustment
Recreating and adjusting accounting journal entries for initial recognition, monthly amortization, depreciation, and accrued interest.
Ensuring High Accuracy
Ensuring a high level of accuracy and auditability across all calculations and journal entries.
Solution
We designed and implemented a comprehensive dual-platform system to automate and manage the end-to-end PSAK 73 compliance process. This solution is engineered to handle the high volume and complexity of Telkom’s lease portfolio with precision and efficiency.
Automated Data Ingestion
Securely receiving and validating contract data from standard Excel templates via SFTP.
Complex Calculation Processing
Executing advanced calculation logic based on more than 10 distinct business scenarios (e.g., Lessee Advance Fixed Transition Contracts, Lessor Fixed-in-Substance Arrears New Contracts).
Data Generation
Generating precise calculation tables for Present Value, Amortization Schedules (for both liabilities and receivables), Right-of-Use (ROU) Asset values, and Accrued Interest.
Master Data Management
Storing and maintaining all essential master data, including Business Partners, Asset Groups, and Chart of Accounts.
Automated Journal Creation
Executing a series of processes to automatically generate all required GL journal entries, including Initial Recognition, Amortization, Asset Depreciation, Accrued Interest, Reversal Journals, and Current/Non-Current Reclassifications
Comprehensive Reporting
Delivering 15 robust custom reports to provide full visibility and control. These include monthly, quarterly, and annual financial summaries by business area, detailed contract maturity reports, sublease profit/loss analysis, and essential control reports to identify unprocessed or unmatched contract lines.
Result
By implementing this automated solution, we successfully transitioned Telkom Indonesia to full compliance with the new PSAK 73 (IFRS 16) standard.
Drastic Efficiency Gains
Transformed complex, high-volume manual accounting challenges into a streamlined, automated process, saving the finance team up to 5 hours daily.
Significant Error Reduction
Eliminated reliance on manual, Excel-based calculations, cutting human error rates by up to 70% and ensuring high precision across all NPV calculations and journal entries.
Substantial Cost Reduction
Optimized accounting workflows, leading to up to a 40% reduction in costs associated with manual data processing and redundant labor.
Full Regulatory Compliance
Achieving timely and accurate compliance, effectively mitigating financial reporting and audit risks.
End-to-End Automation
Transforming complex, high-volume manual accounting challenges into an efficient, systematic, and auditable automated process.
Yessylia Violin
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