PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK

Foreign Filer Report • May 14, 2009

6-K 1 u00247e6vk.htm PT TELEKOMUNIKASI INDONESIA PT TELEKOMUNIKASI INDONESIA 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 13 a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May , 20 09

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): 82- ]

Enclosure: 2007 Annual Report of Perusahaan Perseroan (Persero) PT TELEKOMUNIKASI INDONESIA

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SIGNATURES

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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 13, 2009	By	/s/ Heri Supriadi
	(Signature)
		Heri Supriadi
		VP Investor Relations/ Corporate Secretary

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THE YEAR END OF 2008 RESULTS (AUDITED) May 13,2009

TICKERS: NYSE : TLK LSE : TKIA IDX : TLKM

DIVISIONS: Regional Divisions:I, II, III, IV, V,VI and VII

ISSUED SHARES: 20,159,999,280 shares

SHAREHOLDERS COMPOSITION: Govt. of Indonesia : 51.2% Public : 46.4% Treasury Stock : 2.4% (As of Dec 31, 2008)

CONVERSION RATES (US$ 1.00): 2007 = Rp.9,394.0 (Dec 31,2007) 2008 = Rp.10,900.0 (Dec 31,2008)

NOTABLE FIGURES:

| n | As of December 31, 2008, Net additional subscribers of Speedy, Flexi and Cellular have grown significantly by 167.6%,
190.9% and 41.6%, respectively |
| --- | --- |
| n | On YoY basis, Total Operating Revenues rose by 2.1% to Rp.60.7 Tn |
| n | Total Expenses increased by 16.4% and EBITDA decreased by 6.6%, due to: |

ü	Early Retirement Program (“ERP”) with an expense of Rp.788 billion;
ü	An increase in radio frequency usage charges of Rp.1.3 trillion. following the growth in Telkomsel’s BTS

n	Net Income decreased by 17.4%, mainly due to forex losses of Rp.1.6 trillion
n	On YoY basis, our New wave revenue grew by 42.9%, and its contribution to total revenue increased by 2.6% in 2008.

FIXED LINE LIS vs CELLULAR SUBSCRIBERS FY/08 (in million)

OPERATIONAL HIGHLIGHTS :

Descriptions	FY/07 — (‘000)	FY/08 — (‘000)	Growth (%)
Fixed Line:
LIS Wireline	8,685	8,630		-0.6
LIS Wireless (Flexi):	6,363	12,725		100.0
— Post paid	828	731		-11.7
— Prepaid	5,535	11,994		116.7
Total Fixed Line	15,048	21,355		41.9
Cellular:
— Postpaid	1,913	1,940		1.4
— Prepaid	45,977	63,360		37.8
Total Cellular	47,890	65,300		36.4
ADSL (Speedy)	241	645*	)	167.6

*) Exclude for education and trial= 205K

TELKOM FINANCIAL INDICATORS — FY/08 (Rp.Trillion)

FINANCIAL HIGHLIGHTS (Consolidated):

Key Indicators — Op. Revenues (Rp. bn)	59,440	60,690	2.1
Op. Expenses (Rp. bn)	32,967	38,382	16.4
Op. Income (Rp. bn)	26,473	22,307	-15.7
EBITDA (Rp. bn)	37,067	34,621	-6.6
Net Inc. (Rp. bn)	12,857	10,619	-17.4
Net Inc./Share(Rp)	644.08	537.73	-16.5
Net Inc./ADS(Rp)	25,763.2	21.509.2	-16.5
EBITDA Margin (%)	62.3	57.0	-5.3

DISCLAIMER

This document contains financial conditions and result of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements, by their nature, involve risk and uncertainty that could cause actual results and development to differ materially from those expressed or implied in these statements. TELKOM does not guarantee that any action, which should have been taken in reliance on this document will bring specific results as expected.

Investor Relations & Corporate Secretary PT. TELEKOMUNIKASI INDONESIA Tbk Grha Citra Caraka, 5 th floor Jl. Gatot Subroto No.52, Jakarta Phone : 62 21 5215109 Fax : 62 21 5220500 Email : investor@telkom.co.id Website : www.telkom-indonesia.com

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ANNOUNCEMENT FOR THE YEAR END OF 2008 RESULTS (Audited)

Jakarta, May 13, 2009 — PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), has announced its operational and consolidated financial statements results for the year end of 2008. All financial figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP) and expressed an unqualified opinion from the Auditor.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of December 31, 2008, TELKOM recorded 21.4 million fixed lines in service, consisting of 8.6 million fixed wirelines and 12.7 million fixed wireless.

Fixed-Wireless CDMA Services

In this period, TELKOMFlexi was available in 353 cities with 4,054 BTS. As of December 31, 2008, TELKOMFlexi has market share more than 59% with 12.7 million subscribers. During 2008, in tight competition, TELKOMFlexi can maintain ARPU (blended) amount Rp.38K (decreased by 28.3% compared to the 2007 figures. Meanwhile, the total wireless production grew by 45.7% from 9,327 billion minutes to 13,593 billion minutes. As of December 31, 2008, net adds for Flexi reached 6.4 million or grew by 191%, compared to 2007 figures.

For detail information of TELKOMFlexi performance as of December 31, 2008, please see attachment on Table 7.

Cellular net additional subscribers for 2008 reached 17.4 million

Cellular Services

As of December 31, 2008, Telkomsel has around 47 % subscribers market share with a total of 65.3 million subscribers.

During the year of 2008, Telkomsel added 6,014 new BTS (including 1,278 3G-BTS), and 67.3 million subscribers capacity. As of December 31, 2008, total Telkomsel’s BTS grew by 28.8% to 26,872 units.

Telkomsel provides GSM cellular services in Indonesia through its own network and internationally through networks operated by 329 international roaming partners in 176 countries as of the end of 2008. At the of year 2008, Telkomsel had the largest network of any of the cellular operators in Indonesia, providing coverage to more than 95% of Indonesia’s population, including all counties in Indonesia and all sub-counties in Java, Bali, Nusa Tenggara and Sumatera.

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Telkomsel was the first operator in South East Asia that launched BlackBerry ® prepaid service

In May 2008, Telkomsel was the first operator in South East Asia that launched BlackBerry ® prepaid service. Activation via SMS was launched at the same time, marking a worldwide first. By the end of 2008, BlackBerry ® subscription had reached 35,000. In the same month, Telkomsel offered free modem unlimited package & unlimited package for kartuHALO subscribers who use TelkomselFlash service.

Broadband Services

As of December 31, 2008, there were 645K subscribers (exclude 205K for education and trial) of broadband ADSL internet access (Speedy) or 167.6 % growth from 241K subscribers compared to last year. The revenues from Speedy services for the year of 2008 has reached Rp.1,438.7 billion.

FINANCIAL RESULTS

In this report we compare the Company’s financial results as of December 31, 2008 with the same period last year, based on financial statements submitted to the capital market authority (Bapepam-LK).

Balance Sheet

For this year, TELKOM’s Total Assets increased 11.2% from Rp.82,058.8 billion to Rp.91,256.2 billion.

§ Current Assets, decreased by 8.5% to Rp.14,622.3 billion, mainly due to lower cash balance as result from increasing in cash payments for operating expenses during 2008.

§ Non Current Assets increased by 16.0% to Rp.76,933.9 billion due to increasing in our fixed assets more than Rp.10 trillion as a result from capital expenditures for network infrastructures.

Total Liabilities increased by 21.2% to Rp.47,258.4 billion and Total Equities increased by 1.7% to Rp.31,314.1 billion.

§ Current Liabilities increased by 30.6% to Rp.26,998.2 billion due to increasing in trade payables and current maturities of long-term maturities.

§ Non-current Liabilities increased by 10.5% to Rp.20,260.2 billion due to increasing in bank loans.

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Profit and Loss Statement

Operating Revenues

Operating Revenues which was presented in net basis for FY/2007 and FY/2008, respectively, increased by Rp. 1,249.8 billion, or 2.1%, from Rp.59,440.0 billion in 2007 to Rp. 60,689.8 billion in 2008. This increase was lower than the same period last year, mainly attributed to an aggressive price war in cellular industry, regulatory change in interconnection since April, 2008, and customer life style.

The contribution of the increased revenues in 2008 is summarized as follows:

Cellular revenues contribution to total revenues increased by 3.6 % from the last year contribution

Revenues Contribution FY/08:

§ Cellular revenues increased by Rp. 2,694.0 billion, or 11.9% compared to the same period last year, mainly due to the growth in Telkomsel’s Minutes of Usage (MOU) by 257.3% to 90.2 billion minutes, as a result from the subscribers growth by 36.4% to 65.3 million.

§ Network revenues increased by Rp.372.1 billion or 52.6%, mainly due to increase in satellite transponder and leased line services as a result from aggressive selling program for leased lines and satellite transponder services during 2008 and increasing in the number of telecommunication operators that use our network that has high capabilities.

§ Data, Internet and information technology services revenues increased by Rp.28.7 billion, or 0.2%.The increase in data and Internet revenues was primarily due to increasing in internet connectivity as a result of successful Speedy marketing program which boost Speedy subscribers.

§ Other telecommunications revenues increased by Rp.388.5 billion or 117.8%. Increasing in this revenues was primarily as a result of flexi terminal bundling program.

§ Meanwhile, Fixed line revenues decreased by Rp.1,271.0 or 11.6%. The decrease in this revenue was primarily due to the decrease in fixed wireline revenues. Decreasing in this revenue due to a 18.0% decrease in local and domestic long-distance revenues caused by changing in life style where customers preferred to make mobile to mobile (M2M) call. As a result of this style, pulse production for this year less than previous year.

Flexi revenue contributed to total revenues in the amount of Rp.3,697 billion

TELKOMFlexi revenues contributed to total TELKOM’s revenue in the amount of Rp.3,697 billion consisting of installation charges, monthly subscription charges, local & domestic long distance revenues which

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amounted to Rp.1,443 billion, while interconnection, SMS and internet revenues amounted to Rp.1,698 billion, Rp.506 and Rp.50 billion, respectively.

§ Interconnection Revenues. On a net basis, the Interconnection revenues decreased by Rp.860.5 billion, or 8.9%. Net interconnection revenue consists of interconnection revenues from our fixed line network and interconnection revenues from Telkomsel’s mobile cellular network and also from incoming international long distance of our IDD service (TIC-007). The decrease in this revenue was primarily due to changing in life style where customers seem to be likely using on-net call (mobile to mobile call) from the same operators which offered very low tariff.

Based on YoY comparison, Operating revenues showed positive results and increased by 1.9%

To make comparison with previous quarter, below we represent the proforma QoQ and YoY table, which are presented on net basis.

Account	QoQ — Q3/08	Q4/08	Growth	YoY — Q4/07	Q4/08	Growth
Operating Rev.(Rp.bn)	14,422	16,090	11.6 %	15,793	16,090	1.9 %
Operating Expense (Rp. Bn)	9,711	10,961	12.9 %	9,216	10,961	18.9 %
Operating Income (Rp. Bn)	4,711	5,128	8.9 %	6,577	5,128	-22.0 %
EBITDA (Rp. Bn)	7,769	8,641	11.2 %	9,361	8,641	-7.7 %
Net Income (Rp. Bn)	2,622	1,699	-35.2 %	3,038	1,699	-44.1 %
EBITDA Margin (%)	53.9 %	53.7 %	-0.2 %	59.3 %	53.7 %	-5.6 %

Based on QoQ and YoY comparison, Operating revenues showed positive results and increased by 11.6% and 1.9%, respectively.

Our current strategy is to continue to strengthen the Legacy business and aggressively grow our New Wave business

Facing industry environment recently, we have stated new strategy. Our current strategy in tackling the current condition within the telecommunication industry is to continue to “strengthen the Legacy business and aggressively grow New Wave business”. Based on these strategies, we have segmented the revenue into Legacy and New Wave services, which is based on the group of services. This revenue segmentation may slightly differ from financial statement.

Legacy services are derived from the basic services of fixed wireline, fixed wireless and cellular (including SMS), network services, and other telecommunication services. New Wave services encompass data communication for enterprise, internet connectivity, broadband services, IT services and other value added data services.

For comparing our results that related with current strategy, we provide Table 5, containing financial results for Legacy & New wave businesses

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Our New Wave business has positive trend and grew by 42.9%

In mature Legacy business, for the full year 2008, Legacy revenues declined by 0.8%, mainly due to declined on interconnection tariff, pressure on cellular price war and lifestyle change on wireline usages. The new wave revenue grew by 42.9%, and its contribution to total revenue increased from 6.6% in 2007 to 9.2% in 2008. Therefore, the Legacy revenue decline was offset by an increase on the New Wave revenue.

Expenses Contribution FY/08:

Operating Expenses

Operating Expenses increased by Rp. 5,415.0 billion, or 16.4%, summarized as follows:

| § | Operations, maintenance and telecommunications services expenses increased by Rp.2,627.1
billion, or 27.4%, mainly resulting from the network infrastructure growth (total BTS grew by
35.8%, consists of Telkomsel BTS’s from 20,858 to 26,872 units and Flexi’s BTS from 1,911 to
4,054). The increasing of these network infrastructures, primarily affected operation and
maintenance costs, radio frequency usage charges, and also terminal costs. |
| --- | --- |
| § | Depreciation Expenses increased by Rp.1,629.1 billion, or 17.3%, mainly due to increasing
in depreciation expense of Telkomsel by 26.9% resulting from BTS deployment of 6,014 units in
2008, increase in the capacity of its transmitting and receiving stations, switching and
intelligence network equipment, and increase in capital expenditures for network
infrastructures. |

Personnel Expense contribution to total expenses decreased by 2% from the last year contribution

| § | Personnel expenses increased by Rp.621.7 billion or 7.3%. The main contributors were
primarily due to the recognition of accrued liability related to TELKOM’s early retirement
program in 2008 that covered 1,156 participants with total cost amounted to Rp.788 billion. |
| --- | --- |
| § | Marketing expenses increased by Rp.580.6 billion, or 32.8%, primarily due to increase in
advertising and promotion program and also increase in customer education program related to
increasing competition in our business recently. |
| § | Meanwhile, General & Administrative expenses decreased by Rp.43.5 billion, or 1.2%, mainly
due to the decrease in provision for doubtful accounts and social contribution. |

As a result of the foregoing, Operating Income decreased by Rp.4,165.2 billion, or 15.7%, from Rp.26,472.7 billion in 2007 to Rp.22,307.5 billion in 2008 and EBITDA of Rp. 34,621 billion, decreased by Rp.2,446.5 billion or 6.6% from Rp.37,067 billion last year.

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Based on Indonesian Tax Law, a listed company that the stocks owned by the public are 40% or more of the total fully paid and traded stocks in IDX, and such stocks are owned by at least 300 parties, each party owning less than 5% of the total paid-up stocks for six months in one year. These requirements had been fulfilled by TELKOM and the Company had entitled to obtain a reduction of corporate income tax by 5%.

Capital Expenditure

During the year of 2008, total Capex for TELKOM Group amounted to Rp.22,244.5 billion, primarily allocated to TELKOM for Rp.6,086.9 billion and Telkomsel for Rp.15,915.0 billion.

Debt portion in US$ has decreased by 10% to minimize forex loss on our bottom line

Consolidated Debt

As of December 31, 2008, the breakdown of debt portfolio (short-term and long-term) in foreign currencies and Rupiah equivalents were as follows:

Currencies	Original ccy (in million) — FY07	FY08	Rp (in billion) — FY07	FY08	Portion (%) — FY07	FY08
IDR / Rupiah	9,647,137	14,072,258	9,647	14,072	61 %	71 %
U.S. Dollar	524	383	4,923	4,191	31 %	21 %
Japanese Yen	13,242	12,286	1,100	1,489	7 %	8 %
EURO	7	—	101	—	1 %	0 %
Total			15,771	19,752	100 %	100 %

For 2008, TELKOM applied new strategy related to hedge our cash position. Our new hedging strategy is provided by natural hedging through maintaining cash and cash equivalent amounted around 50% from approximately current maturity and average payment for capex/opex during 12 months ahead. With this new strategy, total hedging amounted US$ 90 million/month for one year ahead.

Human Resources

As of December 31, 2008, the total number of employees at TELKOM (as a single entity) and Telkomsel were 25,016 persons and 4,129 persons respectively.

In December 2008, TELKOM introduced an Early Retirement Program (“ERP”) for all of its employees. We offered this to make our business environment more effective and competitive. The program was offered on a voluntary basis to all employees meeting the eligibility criteria (e.g.,

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education, age, tenure, performance). A total of Rp.788 billion was paid out to 1,156 TELKOM employees.

VP Investor Relations & Corporate Secretary, HERI SUPRIADI

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Table 1 PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (AUDITED) As of Dec 31, 2007 and 2008 (in million Rupiah )

ASSETS
CURRENT ASSETS
Cash and cash equivalents	10,140,791	6,889,945
Temporary investments	159,504	267,044
Trade receivables
Related parties — net of allowance for doubtful
accounts of Rp.69,521 million in 2007 and
Rp.81,196 million in 2008	449,085	544,974
Third parties — net of allowance for doubtful
accounts of Rp.1,030,935 million in 2007 and
Rp.1,122,709 million in 2008	2,912,403	2,964,795
Other receivables — net of allowance for
doubtful accounts of Rp.10,982 million in 2007
and Rp.9,194 million in 2008	150,508	108,874
Inventories — net of allowance for obsolescence of
Rp.54,701 million in 2007 and Rp.64,849 million in
2008	211,441	511,950
Prepaid expenses	1,407,410	1,875,773
Claims for tax refund	408,011	569,954
Prepaid taxes	60,222	805,594
Other current assets	78,720	83,407
Total Current Assets	15,978,095	14,622,310
NON-CURRENT ASSETS
Long-term investments — net	113,990	169,253
Property, plant and equipment — net of accumulated
depreciation of Rp.54,005,834 million in 2007 and
Rp.61,917,333 million in 2008	60,075,808	70,589,590
Property, plant and equipment under Revenue-Sharing
Arrangements — net of accumulated depreciation of
Rp.502,563 million in 2007 and Rp.249,707 million
in 2008	705,091	476,654
Prepaid pension benefit cost	398	97
Advances and other non-current assets	1,408,764	2,159,688
Goodwill and other intangible assets — net of
accumulated amortization of Rp.5,080,964
million in 2007 and Rp.6,324,335 million in
2008	3,775,212	3,187,808
Escrow accounts	1,402	50,850
Total Non-current Assets	66,080,665	76,633,940
TOTAL ASSETS	82,058,760	91,256,250

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Table 1 ( continued) PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (AUDITED) As of Dec 31, 2007 and 2008 (in million Rupiah )

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade payables
Related parties	942,912		1,376,146
Third parties	5,962,022		10,793,238
Other payables	16,679		11,959
Taxes payables	3,052,149		739,688
Accrued expenses	2,741,076		4,093,632
Unearned income	2,413,952		2,742,123
Advances from customers and suppliers	141,361		141,132
Short-term bank loans	573,669		46,000
Current maturities of long-term liabilities	4,830,809		7,054,233
Total Current Liabilities	20,674,629		26,998,151
NON-CURRENT LIABILITIES
Deferred tax liabilities — net	3,034,100		2,904,873
Unearned income on Revenue-Sharing Arrangements	503,385		299,324
Accrued long service awards	74,520		102,633
Accrued post-retirement health care benefits	2,768,923		2,570,720
Accrued pension and other post-retirement benefits costs	1,354,543		1,141,798
Long-term liabilities — net of current maturities
Obligations under finance leases	201,994		337,780
Two-step loans — related party	3,727,884		3,949,431
Bank loans	4,165,168		7,495,144
Deferred consideration for business combinations	2,500,273		1,458,545
Total Non-current Liabilities	18,330,790		20,260,248
MINORITY INTEREST	9,304,762		9,683,780
STOCKHOLDERS’ EQUITY
Capital stock — Rp.250 par value per Series A
Dwiwarna share and Series B share
Authorized — 1 Series A Dwiwarna share and
79,999,999,999 Series B shares
Issued and fully paid — 1 Series A Dwiwarna
share and 20,159,999,279 Series B shares	5,040,000		5,040,000
Additional paid-in capital	1,073,333		1,073,333
Treasury stock — 244,740,500 shares in 2007 and 490,574,500 shares in 2008	(2,176,611	)	(4,264,073	)
Difference in value arising from restructuring transactions and other
transactions between entities under common control	270,000		360,000
Difference due to change of equity in associated companies	385,595		385,595
Unrealized holding (loss) gain from available-for-sale securities	11,237		(19,066	)
Translation adjustment	230,017		238,319
Retained earnings
Appropriated	6,700,879		10,557,985
Unappropriated	22,214,129		20,941,978
Total Stockholders’ Equity	33,748,579		34,314,071
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	82,058,760		91,256,250

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Table 2 PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (AUDITED) FOR THE YEAR ENDED DEC 31, 2007 AND 2008 (in million Rupiah )

OPERATING REVENUES
Telephone
Fixed lines	11,001,211		9,730,257
Cellular	22,638,065		25,332,028
Interconnection
Revenues	12,705,911		12,054,314
Expenses	(3,054,604	)	(3,263,560	)
Net	9,651,307		8,790,754
Data, internet and information technology services	14,684,135		14,712,758
Joint operation schemes	—		—
Network	707,374		1,079,475
Revenue-Sharing Arrangements	427,978		326,052
Other telecommunications services	329,941		718,460
Total Operating Revenues	59,440,011		60,689,784
OPERATING EXPENSES
Depreciation	9,440,476		11,069,575
Personnel	8,494,890		9,116,634
Operations, maintenance and telecommunication services	9,590,596		12,217,685
General and administrative	3,672,194		3,628,686
Marketing	1,769,147		2,349,729
Total Operating Expenses	32,967,303		38,382,309
OPERATING INCOME	26,472,708		22,307,475
OTHER (EXPENSES) INCOME
Interest income	518,663		671,834
Equity in net income (loss) of associated companies	6,637		20,471
Interest expense	(1,436,165	)	(1,581,818	)
(Loss) gain on foreign exchange — net	(294,774	)	(1,613,759	)
Others — net	328,584		508,605
Other (expenses) income — net	(877,055	)	(1,994,667	)
INCOME BEFORE TAX	25,595,653		20,312,808
TAX (EXPENSE) BENEFIT
Current	(7,233,874	)	(5,823,558	)
Deferred	(693,949	)	183,863
	(7,927,823	)	(5,639,695	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF
CONSOLIDATED SUBSIDIARIES	17,667,830		14,673,113
MINORITY INTEREST IN NET INCOME OF CONSOLIDATED
SUBSIDIARIES — Net	(4,810,812	)	(4,053,643	)
NET INCOME	12,857,018		10,619,470
BASIC EARNINGS PER SHARE
Net income per share	644.08		537.73
Net income per ADS
(40 Series B shares per ADS)	25,763.20		21,509.20

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Table 3 PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (AUDITED) FOR THE YEAR ENDED DEC 31, 2007 AND 2008 (in million Rupiah )

CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines	10,987,600		9,166,209
Cellular	22,720,191		25,682,026
Interconnection — net	9,621,688		8,751,684
Data, internet and information technology services	14,822,515		14,828,097
Joint operation schemes	3,797		—
Other services	1,122,607		1,848,260
Total cash receipts from operating revenues	59,278,398		60,276,276
Cash payments for operating expenses	(23,612,680	)	(26,637,184	)
Cash refund to customers	(18,876	)	(1,168	)
Cash generated from operations	35,646,842		33,637,924
Interest received	514,524		659,450
Interest paid	(1,470,328	)	(1,429,781	)
Income tax paid	(6,963,766	)	(8,551,296	)
Net Cash Provided by Operating Activities	27,727,272		24,316,297
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of temporary investments and maturity
of time deposits	11,804		28,676
Purchase of temporary investments
and placements in time deposits	(84,444	)	(158,582	)
Proceeds from sale of property, plant and equipment	39,105		3,598
Proceeds from insurance claims	10,626		11,159
Acquisition of property, plant and equipment	(15,056,802	)	(15,863,840	)
Decrease (increase) in advances for purchases of
property, plant and equipment	15,710		224,291
(Increase) decrease in advances and other assets	(61,590	)	(62,679	)
Business combinations, net of cash (paid) acquired	—		(287,403	)
Acquisition of intangible assets	—		(366,887	)
Cash dividends received	510		3,637
Acquisition of long-term investments	(13,782	)	(28,249	)
Increase in escrow accounts	—		(49,448	)
Net Cash Used in Investing Activities	(15,138,863	)	(16,545,727	)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid	(6,047,431	)	(8,033,511	)
Cash dividends paid to minority stockholders of subsidiaries	(3,693,137	)	(3,732,401	)
Proceeds from short-term borrowings	1,130,435		54,235
Repayments of short-term borrowings	(1,233,333	)	(582,195	)
Repayments of Medium-term Notes	(465,000	)	—
Proceeds from long-term borrowings	5,119,000		8,433,000
Repayments of long-term borrowings	(3,317,415	)	(4,865,401	)
Payment for purchase of treasury stock	(1,224,400	)	(2,087,462	)
Repayments of promissory notes	(199,365	)	(200,813	)
Repayments of obligations under finance leases	(26,392	)	(333,888	)
Redemption of bonds	(1,000,000	)	—
Net Cash Used in Financing Activities	(10,957,038	)	(11,348,436	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	1,631,371		(3,577,866	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	193,584		327,020
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	8,315,836		10,140,791
CASH AND CASH EQUIVALENTS AT END OF YEAR	10,140,791		6,889,945

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Table 4 FINANCIAL RATIOS As of Dec 31, 2007 and 2008

Contribution to total fixed lines revenue:
Local & SLJJ (%)	63.8	59.0	(4.9	)
Monthly subscription charges (%)	33.6	37.7	4.1
Installation charges (%)	1.1	1.3	0.2
Phone Card (%)	0.0	0.1	0.1
Others (%)	1.4	1.9	0.5
Contribution to total operating revenues:
Cellular (%)	38.1	41.7	3.7
Fixed lines (%)	18.5	16.0	(2.5	)
Interconnection (%)	16.2	14.5	(1.8	)
Data, internet and information technology service (%)	24.7	24.2	(0.5	)
Network (%)	1.2	1.8	0.6
Revenue-Sharing Arrangements (%)	0.7	0.5	(0.2	)
Other telecommunications services (%)	0.6	1.2	0.6
ARPU Fixed line (Rp.’000)	186.0	139.0	(25.3	)
EBITDA (Rp billion)	37,067	34,621	(6.6	)
EBITDA margin (%)	62.3	57.0	(5.3	)
Operating margin (%)	44.5	36.8	(7.8	)
Profit Margin (%)	21.6	17.5	(4.1	)
Current ratio (%)	77.3	54.2	(23.1	)
Return on Assets (%)	15.7	11.6	(4.1	)
Return on Equity (%)	38.1	30.9	(7.1	)
Total Liabilities to Equity (%)	115.6	137.7	(22.1	)
Gearing (Net Debt to Equity) (%)	16.2	36.6	20.4
Debt to Equity (%)	46.7	57.6	10.8
Debt to EBITDA (%)	42.5	57.1	14.6
Debt Service Ratio (Times)	5.4	4.1	(1.3	)
EBITDA to Interest Expense (times)	25.8	21.9	(3.9	)
EBITDA to Net Debt (%)	677.8	276.0	(401.8	)

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Table 5 Legacy and New Wave Revenues As of Dec 31, 2007 and 2008

2007	2008	Growth (%)		2007	2008
LEGACY REVENUE	55,546	55,126	(0.8	)	93.4	90.8
Wireline	18,021	15,878	(11.9	)	30.3	26.2
Telephony *)	18,021	15,878	(11.9	)	30.3	26.2
Fixed Wireless	3,240	3,247	0.2		5.5	5.4
Telephony *)	2,783	2,741	(1.5	)	4.7	4.5
SMS	457	506	10.8		0.8	0.8
Cellular	32,852	33,892	3.2		55.3	55.8
Telephony *)	22,085	24,745	12.0		37.2	40.8
SMS	10,767	9,147	(15.0	)	18.1	15.1
Network service	678	1,069	57.6		1.1	1.8
Others	754	1,039	37.8		1.3	1.7
NEW WAVES REVENUE	3,895	5,564	42.9		6.6	9.2
Data & Communication	909	1,345	48.0		1.5	2.2
Internet	2,859	3,840	34.3		4.8	6.3
IT Service	51	321	529.5		0.1	0.5
Others	76	58	(23.6	)	0.1	0.1
TOTAL	59,440	60,690	2.1		100.0	100.0

*)
Note: This revenues segmentation may slightly differ from financial statement

Table 6 FIXED TELEPHONE LINES As of Dec 31, 2007 and 2008

	UNIT
Exchange Capacity
Wireline	Lines (’000)	10,732	11,039	2.9 %
Wireless	Lines (’000)	12,832	15,885	23.8 %
Total Exchange Cap.	Lines (’000)	23,564	26,924	14.3 %
Installed Lines
Wireline	Lines (’000)	9,705	9,839	1.4 %
Wireless	Lines (’000)	9,384	19,861	111.7 %
Total Installed Lines	Lines (’000)	19,089	29,700	55.6 %
Subscribers
Wireline	Lines (’000)	8,324	8,303	-0.3 %
Wireless	Lines (’000)	6,336	12,699	100.4 %
Total Subscribers	Lines (’000)	14,660	21,002	43.3 %
Public Phone
Wireline	Lines (’000)	361	327	-9.4 %
Wireless	Lines (’000)	27	27	-1.5 %
Total Public Phone	Lines (’000)	388	354	-8.9 %
Lis Fixed
Wireline	Lines (’000)	8,685	8,630	-0.6 %
Wireless	Lines (’000)	6,363	12,725	100.0 %
Total Lines In Services	Lines (’000)	15,048	21,355	41.9 %

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Table 7 FLEXI PERFORMANCE As of Dec 31, 2007 and 2008

	UNIT
Customer base
Classy/Postpaid	SSF (’000)	828	731		(11.7	)
Trendy/Prepaid	SSF (’000)	5,535	11,994		116.7
Total/Blended	SSF (’000)	6,363	12,725		100.0
Net additional
Classy/Postpaid	SSF (’000)	34	(97	)	(387.7	)
Trendy/Prepaid	SSF (’000)	2,153	6,460		200.0
Total/Blended	SSF (’000)	2,187	6,363		190.9
ARPU
Classy/Postpaid	Rp (000)	114	93		(18.4	)
Trendy/Prepaid	Rp (000)	45	32		(28.9	)
Total/Blended	Rp (000)	53	38		(28.3	)
MOU (Minute of use)	mn minutes	9,327	13,593		45.7
SMS	mn messages	1,998	3,628		81.6
NETWORK
BTS	BTS	1,911	4,054		112.1
Coverage	Cities	238	353		48.3

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Table 8 PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) BALANCE SHEET As of Dec 31, 2007 and 2008 (In billion Rupiah)

ASSETS
CURRENT ASSETS
Cash and cash equivalents	2,776	1,155
Acct. /Unbilled receivables	856	550
Prepayments	938	1,341
Others	489	1,211
Total Current Assets	5,059	4,257
NON-CURRENT ASSETS
Long-term Investment	20	20
Fixed Assets — net	38,251	46,359
Advances for Fixed Assets	98	1
Equipment not used in operations — net	56	37
Intangible assets — net	378	331
Others	815	926
Total Non-Current Assets	39,618	47,674
TOTAL ASSETS	44,677	51,931
CURRENT LIABILITIES
Short-term loans	533	—
Accounts payable & Accr. Liabilities	5,356	10,239
Taxes payable	1,878	236
Unearned revenue	2,004	2,416
Curr. maturities of med/long-term loans	2,632	4,740
Curr. maturities of oblig. under cap. lease	—	130
Total Current Liabilities	12,403	17,761
NON-CURRENT LIABILITIES
Med/Long term loan — net of current maturities	3,880	4,640
Deferred tax liabilities	2,042	2,245
Others	160	252
Total Non-current Liabilities	6,082	7,137
EQUITY
Capital stock — Rp 1,000,000 par value
Authorized — 650,000 shares
Issued and fully paid — 182,570 shares	183	183
Additional paid-in capital	1,505	1,505
Retained earnings	24,504	25,345
Total Equity	26,192	27,033
TOTAL LIAB. & STOCKHOLDERS’ EQUITY	44,677	51,931

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Table 9 PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) INCOME STATEMENT For the Year Ended Dec 31, 2007 and 2008 (In billion Rupiah)

OPERATING REVENUES
Post-paid	5,086		4,243
Prepaid	29,838		31,888
International roaming	579		652
Interconnection : — Revenues	3,276		3,008
— Expense	(2,129	)	(2,636	)
Other (Network lease)	21		44
Net Operating Revenues	36,671		37,199
OPERATING EXPENSES
Personnel	1,397		1,345
Operation & maintenance	6,236		7,944
General & administrative	761		740
Marketing	923		1,208
Other operating expenses	1,750		1,900
Depreciation	5,725		7,264
Total Operating Expenses	16,792		20,401
EBIT (EARNINGS BEFORE INTEREST & TAXES)	19,879		16,798
OTHER INCOME/(EXPENSES)
Interest income & financing charges	(330	)	(650	)
Foreign exchange gain/(loss)	(57	)	(468	)
Others — net	(92	)	139
Other income/(expenses) — net	(479	)	(979	)
INCOME BEFORE TAX	19,400		15,819
INCOME TAX EXPENSE	5,776		4,397
NET INCOME	13,624		11,422
EBITDA	25,604		24,062
EBITDA Margin — over net oper. revenues	70	%	65	%
ROA	33	%	24	%
ROE	55	%	43	%

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Table 10 PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) OPERATIONAL INDICATORS As of Dec 31, 2007 and 2008

	Unit
CUSTOMER BASE
Customer Base
kartuHALO	Subs (000)	1,913	1,940		1.4 %
simPATI	Subs (000)	23,986	43,033		79.4 %
Kartu As	Subs (000)	21,991	20,327		-7.6 %
Total	Subs (000)	47,890	65,300		36.4 %
Net Additions
kartuHALO	Subs (000)	251	27		-89.1 %
simPATI	Subs (000)	2,608	19,047		630.3 %
Kartu As	Subs (000)	9,434	(1,664	)	-117.6 %
Total	Subs (000)	12,293	17,410		41.6 %
MOU (excluding free & incoming mins)	bn minutes	25.2	90.2		257.3 %
ARPU
Total (12 months average)
kartuHALO	Rp.’000/month	264	216		-18.3 %
simPATI	Rp.’000/month	84	63		-25.1 %
Kartu As	Rp.’000/month	57	37		-34.9 %
Blended	Rp.’000/month	80	59		-26.9 %
Non-voice/Data (12 months average)
kartuHALO	Rp.’000/month	49	40		-18.8 %
simPATI	Rp.’000/month	25	16		-35.7 %
Kartu As	Rp.’000/month	23	18		-23.3 %
Blended	Rp.’000/month	25	17		-30.1 %
NETWORK DATA
Network Capacity
Base stations installed (GSM/DCS/3G)	Unit	20,858	26,872		28.8 %
Overall capacity all network elements	Subs. mln.	50.5	67.3		33.3 %
Quality of Service
Call success rate	%	94.24 %	93.61	%	-0.6 %
Call completion rate	%	99.20 %	98.73	%	-0.5 %
EMPLOYEE DATA
Total employees	person	4,080	4,129		1.2 %
Efficiency ratio	Subs/employee	11,738	15,815		34.7 %

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