Bakrie Telecom, the troubled CDMA operator controlled by Bakrie Group, recognized Rp50.7 billion of penalty on late payment to the ministry of communication and informatics in nine months of 2014.

Bakrie Telecom reported no such penalty in the corresponding period of 2013, which contributed to the ballooning net loss to Rp2.9 trillion.

Financial report of Bakrie Telecom posted accrued expenses of Rp407.6 billion to the ministry of communications and informatics, almost doubled from Rp230 billion recorded in December 2013.

The expenses are related to the Cost of Frequency Utilization at a rate of 0.5% of net revenues plus an additional Universal service obligation (USO) of 1.25% of net revenues.