PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK

Foreign Filer Report • May 3, 2005

6-K 1 u92521e6vk.htm PT TELEKOMUNIKASI INDONESIA TBK PT Telekomunikasi Indonesia TbK PAGEBREAK

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May , 20 05

Perusahaan Perseroan (Persero) PT TELEKOMUNIKASI INDONESIA

(Translation of registrant’s name into English)

Jalan Japati No. 1 Bandung-40133 INDONESIA

(Address of principal executive office)

[Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F Form 20-F þ Form 40-F o

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 Yes o No þ

[If “yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

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SIGNATURES
PRESS RELEASE
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2003 AND 2004
CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004
CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2004 AND 2005
CONSOLIDATED STATEMENTS OF INCOME FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

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link1 "SIGNATURES"

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereunto duly authorized.

	Perusahaan Perseroan (Persero) PT TELEKOMUNIKASI INDONESIA
	(Registrant)
Date May 2, 2005	By	/s/ Rochiman Sukarno
	(Signature)
	ROCHIMAN SUKARNO Head of Investor Relation

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link1 "PRESS RELEASE"

PRESS RELEASE

No. TEL.112/PR000/UH1/2005

TELKOM FILED ITS END YEAR RESULT AUDITED 2004 AND FIRST QUARTER UNAUDITED 2005 FINANCIAL REPORTS

Jakarta, May 02, 2005 – Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. (“TELKOM” or the “Company”) filed its audited consolidated year end 2004 and un-audited consolidated first quarter 2005 financial reports to BAPEPAM (Capital Market Supervisory Agency) and the Stock Exchanges.

Copies of both balance sheets and income statements are attached to this Press Release. For the complete please visit www.telkom-indonesia.com

TELKOM is the principal provider of fixed-line services in Indonesia. TELKOM’s majority-owned subsidiary Telkomsel is also the largest Indonesian mobile cellular operator, as measured by subscribers and revenues. The Company also provides a wide range of other telecommunications services including interconnection, network, data and internet services, and other telecommunications services. TELKOM’s shares are listed in the Jakarta and Surabaya Stock Exchange (JSX/SSX: TLKM) and its American depository Shares are listed in the New York Stock Exchange (NYSE:TLK) and London Stock Exchange (LSE:TKIA)

ROCHIMAN SUKARNO Head of Investor Relations

For further information, please contact:

Investor Relations Unit PT TELEKOMUNIKASI INDONESIA, Tbk Tel: 62-21-5215109 Fax: 61-21-5220500 Email: investor@telkom.co.id Website: www.telkom-indonesia.com

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES link2 "CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2003 AND 2004"

CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

Notes	Rp	Rp	US$ (Note 3)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	2c,2f,5,47	5,094,472	4,856,123	522,726
Temporary investments	2c,2g,47	4,006	19,949	2,147
Trade accounts receivable	2c,2h,6,47
Related parties — net of allowance for doubtful
accounts of Rp110,932 million in 2003,
and Rp64,928 million in 2004		410,923	419,104	45,113
Third parties — net of allowance for doubtful
accounts of Rp332,960 million in 2003,
and Rp457,138 million in 2004		2,422,005	2,899,999	312,164
Other accounts receivable — net of allowance for
doubtful accounts of Rp45,544 million in 2003,
and Rp9,236 million in 2004	2c,2h,47	170,121	55,769	6,003
Inventories — net of allowance for obsolescence of
Rp40,489 million in 2003, and Rp54,733 million in 2004	2i,7	154,003	203,085	21,861
Prepaid expenses	2c,2j,8,47	429,695	628,069	67,607
Prepaid taxes	41a	212,282	77,228	8,313
Other current assets	2c,9,47	45,083	44,608	4,802
Total Current Assets		8,942,590	9,203,934	990,736
NON-CURRENT ASSETS
Long-term investments — net	2g,10	64,648	82,613	8,893
Property, plant and equipment — net of accumulated
depreciation of Rp23,581,559 million in 2003,
and Rp29,297,163 million in 2004	2k,2l,11	34,775,140	39,572,099	4,259,645
Property, plant and equipment under revenue-sharing arrangements — net of accumulated
depreciation of Rp791,645 million in 2003,
and Rp694,570 million in 2004	2m,12,50	305,041	499,127	53,727
Prepaid pension benefit costs	2q,44	288,222	91,262	9,824
Advances and other non-current assets	2c,13,47	175,954	1,372,351	147,723
Goodwill and other intangible assets — net of
accumulated amortization of Rp973,704 million
in 2003, and Rp1,846,034 million in 2004	1c,2d,14	5,144,050	5,411,425	582,500
Advance payments for investments in shares of stock	4f	65,458	—	—
Escrow accounts	15	522,146	36,281	3,905
Total Non-current Assets		41,340,659	47,065,158	5,066,217
TOTAL ASSETS		50,283,249	56,269,092	6,056,953

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements.

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

Notes	Rp		Rp		US$ (Note 3)
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade accounts payable	2c,16,47
Related parties		657,478		643,094		69,224
Third parties		3,109,854		3,611,456		388,747
Other accounts payable		187,938		5,073		546
Taxes payable	2s,41b	1,513,038		1,592,479		171,419
Dividends payable		3,779		62,689		6,748
Accrued expenses	2c,17,47	1,185,210		1,051,366		113,172
Unearned income	18	763,211		1,030,000		110,872
Advances from customers and suppliers	19	268,148		278,430		29,971
Short-term bank loans	2c,20,47	37,642		1,101,633		118,583
Current maturities of long-term liabilities	2c,21,47	3,443,516		2,300,822		247,667
Total Current Liabilities		11,169,814		11,677,042		1,256,949
NON-CURRENT LIABILITIES
Deferred tax liabilities — net	2s,41e	3,546,770		3,352,171		360,836
Unearned income on revenue-sharing arrangements	2m,12,50	111,732		360,332		38,787
Unearned initial investor payments under joint
operation schemes	2n,49	31,584		20,453		2,202
Provision for long service awards	2c,2r,45,47	491,037		572,303		61,604
Provision for post-retirement benefits	2c,2r,46,47	2,063,524		1,841,146		198,186
Accrued pension and other post-retirement benefits costs	2q,44b,44d	13,239		32,007		3,445
Long-term liabilities — net of current maturities
Two-step loans — related party	2c,22,47	6,858,910		5,363,283		577,318
Notes and bonds	23	2,102,502		2,331,465		250,965
Bank loans	2c,24,47	2,115,797		1,775,799		191,152
Liabilities of business acquisitions	25	746,974		3,743,317		402,940
Suppliers’ credit loans	26	671		—		—
Bridging loan	27	510		—		—
Other long-term debt		9,153		—		—
Total Non-current Liabilities		18,092,403		19,392,276		2,087,435
MINORITY INTEREST	28	3,708,155		4,938,432		531,586
STOCKHOLDERS’ EQUITY
Capital stock 1) — Rp250 par value per Series A
Dwiwarna share and Series B share
Authorized — one Series A Dwiwarna share and
79,999,999,999 Series B shares
Issued and fully paid — one Series A Dwiwarna share
and 20,159,999,279 Series B shares	1b,29	5,040,000		5,040,000		542,519
Additional paid-in capital	30	1,073,333		1,073,333		115,536
Difference in value of restructuring transactions
between entities under common control	31	(7,288,271	)	(7,288,271	)	(784,529	)
Difference due to change of equity in associated
companies	2g	385,595		385,595		41,506
Unrealized holding gain on available-for-sale securities	2g	—		884		95
Translation adjustment	2g	224,232		229,595		24,714
Retained earnings
Appropriated		1,559,068		1,680,813		180,927
Unappropriated		16,318,920		19,139,393		2,060,215
Total Stockholders’ Equity		17,312,877		20,261,342		2,180,983
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		50,283,249		56,269,092		6,056,953

1) The prior year’s authorized, issued and fully paid capital stock and par value amounts have been restated to reflect a two-for-one stock split as resolved in the Annual General Meeting of Stockholders on July 30, 2004.

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements.

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES link1 "CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004"

CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars, except per share and per ADS data)

Notes	Rp		Rp		Rp		US$ (Note 3)
OPERATING REVENUES
Telephone	2p,32
Fixed lines		7,264,099		8,896,865		10,645,021		1,145,858
Cellular		6,226,801		8,458,830		10,421,298		1,121,776
Interconnection	2p,33,47	2,831,334		4,162,148		6,187,981		666,091
Joint operation schemes	2n,34,49	2,128,145		1,486,307		656,614		70,680
Data and Internet	35	1,551,626		3,108,562		4,808,742		517,626
Network	36	316,098		517,865		654,309		70,432
Revenue-sharing arrangements	2m,37,50	263,754		258,464		280,576		30,202
Other telecommunications services		220,961		226,882		293,225		31,564
Total Operating Revenues		20,802,818		27,115,923		33,947,766		3,654,229
OPERATING EXPENSES
Personnel	38	4,387,568		4,440,096		5,570,778		599,653
Depreciation	2k,2l,2m,11,12	3,473,370		4,779,520		6,438,557		693,063
Operations, maintenance and telecommunication services	39	2,290,219		3,338,693		4,529,587		487,577
General and administrative	40	1,146,294		2,078,777		2,599,847		279,854
Marketing		375,152		502,898		881,930		94,933
Total Operating Expenses		11,672,603		15,139,984		20,020,699		2,155,080
OPERATING INCOME		9,130,215		11,975,939		13,927,067		1,499,149
OTHER INCOME (CHARGES)
Gain on sale of long-term investment in Telkomsel		3,196,380		—		—		—
Interest income	47	479,802		366,024		317,941		34,224
Interest expense	47	(1,582,750	)	(1,383,446	)	(1,270,136	)	(136,721	)
Gain (loss) on foreign exchange — net	2e	556,613		126,121		(1,220,760	)	(131,406	)
Equity in net income of associated companies	2g,10	4,598		2,819		3,420		368
Others — net		(35,956	)	364,338		331,050		35,635
Other income (charges) — net		2,618,687		(524,144	)	(1,838,485	)	(197,900	)
INCOME BEFORE TAX		11,748,902		11,451,795		12,088,582		1,301,249
TAX EXPENSE	2s,41c
Current tax		(2,747,762	)	(3,791,280	)	(4,267,111	)	(459,323	)
Deferred tax		(151,209	)	(69,810	)	264,039		28,422
		(2,898,971	)	(3,861,090	)	(4,003,072	)	(430,901	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		8,849,931		7,590,705		8,085,510		870,348
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES, net	28	(810,222	)	(1,503,478	)	(1,956,301	)	(210,581	)
NET INCOME		8,039,709		6,087,227		6,129,209		659,767
BASIC EARNINGS PER SHARE 1)	2t,42
Net income per share		398.80		301.95		304.03		0.03
Net income per ADS (40 Series B shares per ADS)		15,951.80		12,077.83		12,161.13		1.20

1) The prior years’ basic earnings per share have been restated to reflect a two-for-one stock split as resolved in the Annual General Meeting of Stockholders on July 30, 2004.

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements.

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES link1 "CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004"

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

				Difference in
				value of
				restructuring	Difference due
				transactions	to change				Unrealized
			Additional	between	of equity				holding loss					Total
		Capital	paid-in	entities under	in associated		Translation		on available-for-		Retained earnings			stockholders’
Description	Notes	stock	capital	common control	companies		adjustment		sale securities		Appropriated	Unappropriated		equity
		Rp	Rp	Rp	Rp		Rp		Rp		Rp	Rp		Rp
Balance as of January 1, 2002		5,040,000	1,073,333	(6,992,233	)	489,178		256,674		(207	)	320,392	8,893,824		9,080,961
Foreign currency translation of CSM	2g	—	—	—		—		(21,009	)	—		—	—		(21,009	)
Sale of investment in mutual fund Reksa Dana
Seruni		—	—	—		—		—		207		—	—		207
Acquisition of Pramindo	4b	—	—	(296,038	)	—		—		—		—	—		(296,038	)
Realized difference due to change of equity in
associated companies as the result of sale of
12.72%
of Telkomsel	1c	—	—	—		(65,158	)	—		—		—	—		(65,158	)
Resolved during the Annual General Meeting of
the Stockholders on June 21, 2002:
Declaration of cash dividends	43	—	—	—		—		—		—		—	(2,125,055	)	(2,125,055	)
Appropriation for general reserve	43	—	—	—		—		—		—		425,012	(425,012	)	—
Net income for the year		—	—	—		—		—		—		—	8,039,709		8,039,709
Balance as of December 31, 2002		5,040,000	1,073,333	(7,288,271	)	424,020		235,665		—		745,404	14,383,466		14,613,617

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (continued) FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

				Difference in
				value of
				restructuring	Difference
				transactions	due to change
			Additional	between	of equity							Total
		Capital	paid-in	entities under	in associated		Translation		Retained earnings			stockholders’
Description	Notes	stock	capital	common control	companies		adjustment		Appropriated	Unappropriated		equity
		Rp	Rp	Rp	Rp		Rp		Rp	Rp		Rp
Balance as of January 1, 2003		5,040,000	1,073,333	(7,288,271	)	424,020		235,665		745,404	14,383,466		14,613,617
Realized difference due to change of equity in
associated companies as the result of disposal
of investment in Metrosel	10	—	—	—		(38,425	)	—		—	—		(38,425	)
Foreign currency translation of CSM	2g,10	—	—	—		—		(11,433	)	—	—		(11,433	)
Resolved during the Annual General Meeting
of the Stockholders on May 9, 2003
Declaration of cash dividends	43	—	—	—		—		—		—	(3,338,109	)	(3,338,109	)
Appropriation for general reserve	43	—	—	—		—		—		813,664	(813,664	)	—
Net income for the year		—	—	—		—		—		—	6,087,227		6,087,227
Balance as of December 31, 2003		5,040,000	1,073,333	(7,288,271	)	385,595		224,232		1,559,068	16,318,920		17,312,877

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (continued) FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004 (Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

				Difference in
				value of
				restructuring	Difference
				transactions	due to change	Unrealized
			Additional	between	of equity	holding gain on					Total
		Capital	paid-in	entities under	in associated	available-for-sale	Translation	Retained earnings			stockholders’
Description	Notes	stock	capital	common control	companies	securities	adjustment	Appropriated	Unappropriated		equity
		Rp	Rp	Rp	Rp	Rp	Rp	Rp	Rp		Rp
Balance as of January 1, 2004		5,040,000	1,073,333	(7,288,271	)	385,595	—	224,232	1,559,068	16,318,920		17,312,877
Unrealized holding gain on
available-for-sale securities	2g	—	—	—		—	884	—	—	—		884
Foreign currency translation of CSM	2g,10	—	—	—		—	—	5,363	—	—		5,363
Resolved during the Annual General Meeting
of the Stockholders on July 30, 2004
Declaration of cash dividends	43	—	—	—		—	—	—	—	(3,043,614	)	(3,043,614	)
Appropriation for general reserve	43	—	—	—		—	—	—	121,745	(121,745	)	—
Declaration of interim cash dividends	43	—	—	—		—	—	—	—	(143,377	)	(143,377	)
Net income for the year		—	—	—		—	—	—	—	6,129,209		6,129,209
Balance as of December 31, 2004		5,040,000	1,073,333	(7,288,271	)	385,595	884	229,595	1,680,813	19,139,393		20,261,342

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES link1 "CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004"

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

Rp		Rp		Rp		US$ (Note 3)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines	7,230,394		8,201,928		10,084,558		1,085,528
Cellular	7,098,585		8,925,503		10,497,763		1,130,007
Joint operation schemes	1,577,976		1,195,563		547,487		58,933
Interconnection — net	1,697,073		4,203,802		5,766,444		620,715
Other services	1,132,077		3,932,084		6,663,500		717,277
Total cash receipts from operating revenues	18,736,105		26,458,880		33,559,752		3,612,460
Cash payments for operating expenses	(5,800,470	)	(8,861,797	)	(12,270,643	)	(1,320,844	)
Cash generated from operations	12,935,635		17,597,083		21,289,109		2,291,616
Interest received	480,288		369,982		321,677		34,626
Income tax paid	(1,914,895	)	(3,905,317	)	(4,132,359	)	(444,818	)
Interest paid	(900,660	)	(1,178,332	)	(1,348,919	)	(145,201	)
Cash receipt (refund) from/to customers and advances	264,105		(30,884	)	(78,028	)	(8,399	)
Net Cash Provided by Operating Activities	10,864,473		12,852,532		16,051,480		1,727,824
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investments and maturity of
time deposits	1,497,883		1,895,199		285,264		30,707
Proceeds from sale of property, plant and equipment	204,008		255,750		67,196		7,233
Purchase of marketable securities and placements
in time deposits	(2,222,175	)	(679,500	)	(404,268	)	(43,516	)
Sale of 12.72% of Telkomsel	3,948,945		—		—		—
Payment for cross-ownership transactions	(2,406,309	)	—		—		—
Acquisition of businesses, net of cash acquired	(243,561	)	141,985		(27,797	)	(2,992	)
Acquisition of property, plant and equipment	(6,625,292	)	(9,007,186	)	(8,568,862	)	(922,375	)
Payment of advances for the purchase of property, plant and equipment	—		—		(1,063,382	)	(114,465	)
Decrease in advances and others	71,569		96,830		123,026		13,243
Payments of advances for investments in shares of stock	(230,223	)	(14,338	)	—		—
Acquisition of long-term investments	(37,607	)	—		(9,290	)	(1,000	)
Sale of long-term investments	—		5,398		—		—
Acquisition of intangible assets	(7,213	)	—		—		—
Net Cash Used in Investing Activities	(6,049,975	)	(7,305,862	)	(9,598,113	)	(1,033,165	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for debt issuance cost	(53,915	)	—		(2,394	)	(258	)
Proceeds from bonds	2,365,314		—		—		—
Proceeds from Medium-term Notes	—		—		1,080,000		116,254
Repayments of long-term liabilities	(2,493,738	)	(1,536,941	)	(5,963,659	)	(641,944	)
Repayments of promissory notes	(771,066	)	(1,513,064	)	(1,637,917	)	(176,310	)
Cash dividends paid	(2,327,458	)	(3,738,586	)	(3,811,591	)	(410,290	)
(Increase) decrease in escrow accounts	(126,848	)	(224,219	)	485,866		52,300
Redemption of Telkomsel’s notes	—		(160,509	)	(504,101	)	(54,263	)
Proceeds from borrowings	737,495		995,903		3,448,931		371,252
Net Cash Used in Financing Activities	(2,670,216	)	(6,177,416	)	(6,904,865	)	(743,259	)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS	2,144,282		(630,746	)	(451,498	)	(48,600	)
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS	(89,425	)	26,148		213,149		22,944
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR	3,644,213		5,699,070		5,094,472		548,382
CASH AND CASH EQUIVALENTS AT END OF YEAR	5,699,070		5,094,472		4,856,123		522,726

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements.

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

Rp	Rp	Rp	US$ (Note 3)
SUPPLEMENTAL CASH FLOW INFORMATION
Noncash investing and financing activities:
Increase in property under construction through
the incurrence of long-term debt	480,756	536,248	—	—
Payment of insurance premium through
the incurrence of long-term debt	—	81,186	11,658	1,255
Conversion of receivables to long-term investments	—	13,500	—	—
Acquisition of subsidiary through the issuance of
Promissory Notes	3,329,004	927,273	—	—
Acquisition of minority interest through the issuance
of Promissory Notes	—	—	126,692	13,637
Acquisition of business through the incurrence
of long-term liability	—	—	3,257,566	350,653

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES link1 "CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2004 AND 2005"

CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2004 AND 2005

(Amounts in millions, except share data)

Notes	Rp	Rp	US$ (Note 3)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	2c,2f,5,47	5,168,914	6,180,470	651
Temporary investments	2c,2g,47	—	46,220	5
Trade accounts receivable	2c,2h,6,47
Related parties — net of allowance for doubtful
accounts of Rp82,804 in 2004,
and Rp99,523 in 2005		676,908	678,393	72
Third parties — net of allowance for doubtful
accounts of Rp413,726 in 2004
and Rp508,301 in 2005		2,895,600	3,200,061	337
Other accounts receivable — net of allowance for
doubtful accounts of Rp55,737 in 2004
and Rp14,553 in 2004	2c,2h,47	38,150	54,731	6
Inventories — net of allowance for obsolescence of
Rp40,414 in 2004 and Rp56,940 in 2005	2i,7	177,598	172,343	18
Prepaid expenses	2c,2j,8,47	643,390	995,512	105
Prepaid taxes	41a	90,654	68,605	7
Other current assets	2c,9,47	40,534	44,455	5
Total Current Assets		9,731,748	11,440,790	1,206
NON-CURRENT ASSETS
Long-term investments — net	2g,10	136,741	85,389	9
Property, plant and equipment — net of accumulated
depreciation of Rp26,497,621 in 2004
and Rp30,879,083 in 2005	2k,2l,11	36,307,769	39,732,501	4,189
Property, plant and equipment under revenue-sharing arrangements — net of accumulated
depreciation of Rp809,772 in 2004
and Rp668,053 in 2005	2m,12,50	286,914	468,293	49
Prepaid pension cost	2q,44	233,563	69,387	7
Advances and other non-current assets	2c,13,47	288,645	1,432,433	151
Goodwill and other intangible assets — net of
accumulated amortization of Rp1,182,787
in 2004 and Rp2,075,572 in 2005	1c,2d,14	5,843,560	5,181,887	546
Advance payments for investment in shares of stock	4f	65,458	—	—
Escrow account	15	250,409	59,325	6
Total Non-current Assets		43,413,059	47,029,215	4,957
TOTAL ASSETS		53,144,807	58,470,005	6,163

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements.

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2004 AND 2005

(Amounts in millions, except share data)

Notes	Rp		Rp		US$ (Note 3)
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade accounts payable	2c,16,47
Related parties		623,367		951,699		100
Third parties		2,331,355		2,780,341		293
Other accounts payable		61,188		133,142		14
Taxes payable	2s,41b	714,840		1,276,180		134
Dividends payable		11,799		62,690		7
Accrued expenses	2c,17,47	1,775,433		1,757,707		185
Unearned income	18	755,059		1,089,655		115
Advances from customers and suppliers	19	427,791		413,855		44
Short-term bank loans	2c,20,47	1,037,644		1,109,153		117
Current maturities of long-term liabilities	2c,21,47	2,358,319		3,043,517		321
Total Current Liabilities		10,096,795		12,617,939		1,330
NON-CURRENT LIABILITIES
Deferred tax liabilities — net	2s,41e	3,515,565		3,063,582		323
Unearned income on revenue-sharing arrangements	2m,13,50	111,184		333,842		35
Unearned initial investor payments under joint
operation scheme	2n,34,49	28,497		19,330		2
Provision for long service award	2r,45	512,954		584,720		62
Provision for post-retirement health care benefits	2r,46	2,007,930		1,857,813		196
Provision for other post-retirement benefits		11,402		21,677		2
Long-term liabilities — net of current maturities
Two-step loans — related party	2c,22,47	6,495,522		5,241,761		553
Notes and bonds	23	1,761,501		1,596,167		168
Bank loans	2c,24,47	2,138,446		2,026,238		213
Liabilities for acquisition of business	25	3,766,407		3,592,182		379
Suppliers’ credit loans	26	680		—		—
Bridging loan	27	517		—		—
Other long-term debt		9,378		—		—
Total Non-current Liabilities		20,359,983		18,337,312		1,933
MINORITY INTEREST IN NET ASSETS OF SUBSIDIARIES	28	3,724,385		5,549,979		585
EQUITY
Capital stock — Rp250 par value per Series A
Dwiwarna share and Series B share
Authorized — one Series A Dwiwarna share and
79,999,999,999 Series B shares
Issued and fully paid — one Series A Dwiwarna share
and 20,159,999,279 Series B shares	29	5,040,000		5,040,000		531
Additional paid-in capital	30	1,073,333		1,073,333		113
Difference in value of restructuring transactions
between entities under common control	31	(7,288,271	)	(7,288,271	)	(768	)
Difference due to change of equity in associated
companies	2g	385,595		385,595		41
Unrealized loss on decline in value of securities	2e	—		1,290		—
Translation adjustment		224,232		229,595		24
Retained earnings
Appropriated		1,559,068		1,680,813		177
Unappropriated		17,969,687		20,842,420		2,197
Total Equity		18,963,644		21,964,775		2,315
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		53,144,807		58,470,005		6,163

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements.

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES link1 "CONSOLIDATED STATEMENTS OF INCOME FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005"

CONSOLIDATED STATEMENTS OF INCOME FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

(Amounts in millions, except share and per ADS data)

Notes	Rp		Rp		US$ (Note 3)
OPERATING REVENUES
Telephone	2p,32
Fixed lines		2,628,041		2,727,068		287
Cellular		2,449,493		3,019,873		318
Interconnection	2p,33,47	1,335,802		1,848,186		195
Joint operation schemes	2n,34,49	94,807		166,746		18
Data and Internet	35	1,009,452		1,419,869		150
Network	36	120,726		108,955		11
Revenue-sharing arrangements	2m,37,50	59,173		29,897		3
Other telecommunications services		58,801		26,299		3
Total Operating Revenues		7,756,295		9,346,893		985
OPERATING EXPENSES
Personnel	38	1,384,220		2,067,943		218
Depreciation	2k,2l,2m,11,12	1,500,998		1,559,218		164
Operations, maintenance and telecommunication
services	39	955,204		1,268,444		134
General and administrative	40	532,423		577,012		61
Marketing		166,096		179,621		19
Total Operating Expenses		4,538,941		5,652,238		596
OPERATING INCOME		3,217,354		3,694,655		389
OTHER INCOME (CHARGES)
Gain on sale of long-term investment in Telkomsel		—		—		—
Interest income	47	53,799		57,295		6
Interest expense	47	(333,734	)	(312,807	)	(33	)
Gain (loss) on foreign exchange — net	2e	(50,470	)	(176,382	)	(19	)
Equity in net income (loss) of associated companies	2g,10	18		2,778		—
Others — net		113,820		129,027		14
Other income (charges) — net		(216,567	)	(300,089	)	(32	)
INCOME BEFORE TAX		3,000,787		3,394,566		357
TAX EXPENSE	2s,41e
Current tax		(946,668	)	(1,347,588	)	(142	)
Deferred tax		31,007		288,500		30
		(915,661	)	(1,059,088	)	(112	)
INCOME BEFORE MINORITY INTEREST IN NET
INCOME OF SUBSIDIARIES		2,085,126		2,335,478		245
MINORITY INTEREST IN NET INCOME OF
SUBSIDIARIES	28	(434,359	)	(632,451	)	(67	)
NET INCOME		1,650,767		1,703,027		178
BASIC EARNINGS PER SHARE	2t,42
Net income per share		81.88		84.48		0.01
Net income per ADS
(40 Series B shares per ADS)		3,275.33		3,379.14		0.36

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements.

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PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES link1 "CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005"

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

(Amounts in millions)

				Difference in
				value of
				restructuring	Difference due		Unrealized
				transactions	to change		gain
			Additional	between	of equity		on decline in			Total
		Capital	paid-in	entities under	in associated	Translation	value of	Retained earnings		stockholders’
Description	Notes	stock	capital	common control	companies	adjustments	securities	Appropriated	Unappropriated	equity
		Rp	Rp	Rp	Rp	Rp	Rp	Rp	Rp	Rp
Balance as of January 1, 2005		5,040,000	1,073,333	(7,288,271	)	385,595	229,595	884	1,680,813	19,139,393	20,261,342
Unrealized gain on decline in value of securities		—	—	—		—	—	406	—	—	406
Net income for the year		—	—	—		—	—	—	—	1,703,027	1,703,027
Balance as of March 31, 2005		5,040,000	1,073,333	(7,288,271	)	385,595	229,595	1,290	1,680,813	20,842,420	21,964,775

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements

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PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (continued) FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005 (Amounts in millions)

				Difference in
				value of
				restructuring	Difference
				transactions	due to change		Unrealized
			Additional	between	of equity		loss on			Total
		Capital	paid-in	entities under	in associated	Translation	investment	Retained earnings		stockholders’
Description	Notes	stock	capital	common control	companies	adjustments	in securities	Appropriated	Unappropriated	equity
		Rp	Rp	Rp	Rp	Rp	Rp	Rp	Rp	Rp
Balance as of January 1, 2004		5,040,000	1,073,333	(7,288,271	)	385,595	224,232	—	1,559,068	16,318,920	17,312,877
Net income for the year		—	—	—		—	—	—	—	1,650,767	1,650,767
Balance as of March 31, 2004		5,040,000	1,073,333	(7,288,271	)	385,595	224,232	—	1,559,068	17,969,687	18,963,644

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES link1 "CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005"

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

(Amounts in millions)

Rp		Rp		US$ (Note 3)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues Telephone and interconnection — net
Fixed lines	2,455,558		2,677,841		288
Cellular	2,066,558		3,019,537		326
Joint operation scheme	79,687		239,204		26
Interconnection — net	1,534,187		1,727,858		186
Other services	874,718		1,545,020		166
Total cash receipts from operating revenues	7,010,708		9,209,460		992
Cash payments for operating expenses	(2,220,604	)	(2,824,119	)	(304	)
Cash generated from operations	4,790,104		6,385,341		688
Interest received	54,190		57,492		6
Income tax payments	(1,873,559	)	(1,800,340	)	(194	)
Interest paid	(315,641	)	(190,894	)	(21	)
Cash receipt (refund) from/to customers and advances	84,489		135,425		15
Net Cash Provided by Operating Activities	2,739,583		4,587,024		494
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment	2,719		5,312		1
Purchase of marketable securities and placements
in time deposits	—		(25,865	)	(3	)
Acquisition of businesses, net of cash acquired	—		168,171		18
Acquisition of property, plant and equipment	(1,489,239	)	(2,583,361	)	(278	)
Decrease in advances and others	112,021		66,945		7
Net Cash Used in Investing Activities	(1,374,499	)	(2,368,798	)	(255	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment for debt issuance cost	(520,234	)	(1,039,143	)	(112	)
Repayments of promissory notes	(1,582,618	)	—		—
Cash dividends paid	8,019		—		—
Increase in escrow accounts	(271,738	)	(23,045	)	(2	)
Receipts from loan	1,159,706		299,867		32
Net Cash Used in Financing Activities	(1,206,865	)	(762,321	)	(82	)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS	158,219		1,455,905		157
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS	13,015		(131,559	)	(14	)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR	4,997,680		4,856,124		523
CASH AND CASH EQUIVALENTS AT END OF YEAR	5,168,914		6,180,470		666

See accompanying notes to consolidated financial statements, which form an integral part of the consolidated financial statements.

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PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004 (Amounts in millions)

Rp		Rp	Rp	US$ (Note 3)
SUPPLEMENTAL CASH FLOW INFORMATION
Noncash investing and financing activities:
Increase in property under construction through
the incurrence of long-term debts	480,756		536,248	3,184,874	343
Increase in intangible assets through incurrence
of long term debt	—		—	1,047,980	113
Payment of insurance premium through
the incurrence of long-term debts	—		81,186	11,658	1
Increase in property and equipment through
lease liabilities	—		—	—	—
Capitalization of borrowing costs during
construction:
Losses (gains) on foreign exchange, net	(27,568	)	—	74,283	8
Interest	20,108		22,925	57,690	6
Conversion of receivables to long-term investments	—		13,500	—	—
Acquisition of subsidiary through the issuance of
Promissory Notes	3,329,004		927,273	—	—

See accompanying notes to consolidated financial statements, which are an integral part of the consolidated financial statements.

15