PT Telkom InfoMemo 1Q13

T H E F I R S T Q U A R T E R 2 0 1 3 R E S U L T S ( U N A U D I T E D )

TICKERS: IDX : TLKM NYSE : TLK LSE : TKID

ISSUED SHARES: 20,159,999,280 shares

SHAREHOLDER COMPOSITION: Govt. of Indonesia : 53.9% Public : 46.1% Excl. Treasury stock 1,010,930,460 shares.

CONVERSION RATES (US$ 1.00): March 31, 2013 = Rp9,717.5 March 31, 2012 = Rp9,144.0

FINANCIAL PERFORMANCE Revenue (in Rp. Bn)

OPERATIONAL PERFORMANCE Subscribers (million)

Highlight Our consolidated revenue in 1Q13 grew by 9.8% YoY to Rp19.5 trillion and our celullar

subsidiary recorded a 13.3% YoY revenue growth to Rp13.9 trillion. Our broadband users grew by 62.1% YoY, meanwhile cellular subscribers increased 9.8%

YoY to 120.6 million. Fixed line business revenue still recorded positive growth with 0.1% YoY growth. Telkomsel kept deploying around 1,000 new BTS per month during 1Q13 with almost 70%

was 3G Node B.

Investor Relations PT Telekomunikasi Indonesia Tbk Grha Citra Caraka, 5th Floor Jl. Gatot Subroto No. 52, Jakarta 12710 Phone : 62 21 5215109 Fax : 62 21 5220500 Email : [email protected] Website : www.telkom.co.id

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 Indonesia does not guarantee that any action, which may have been taken in reliance on this document, will bring specific results as expected.

Financial Highlights

Key Indicators YoY QoQ (Rp. Bn) 1Q12 1Q13 Growth

(%) 2Q12 3Q12 4Q12 1Q13 Growth

(%) Revenues 17,796 19,547 9.8 18,924 20,144 20,279 19,547 (3.6) Expenses 11,576 12,797 10.5 12,844 13,138 13,888 12,797 (7.9) Operating Profit 6,220 6,750 8.5 6,080 7,006 6,391 6,750 5.6 EBITDA 9,623 10,049 4.4 9,659 10,638 9,837 10,049 2.2 EBITDA Margin (%) 54.1 51.4 (2.7) 51.0 52.8 48.5 51.4 2.9 Net Income 3,322 3,477 4.7 3,106 3,573 2,849 3,477 22.0

Operational Highlights

Subscriber (000) YoY QoQ

1Q12 1Q13 Growth (%)

2Q12 3Q12 4Q12 1Q13 Growth (%)

Broadband

Fixed Broadband/ Speedy 1,884 2,652 40.8 1,957 2,131 2,341 2,652 13.3 Mobile Broadband/ Flash 5,241 8,767 67.3 5,807 8,662 11,039 8,767 (20.6) Blackberry 3,348 5,557 66.0 4,055 5,126 5,764 5,557 (3.6)

Total 10,473 16,976 62.1 11,819 15,919 19,144 16,976 (11.3)

Cellular Postpaid 2,213 2,219 0.3 2,119 2,155 2,149 2,219 3.3 Prepaid 107,668 118,392 10.0 115,116 119,322 122,997 118,392 (3.7)

Total 109,881 120,611 9.8 117,235 121,477 125,146 120,611 (3.6)

Fixed Line LIS Wireline 8,686 9,044 4.1 8,774 8,854 8,946 9,044 1.1 LIS Wireless 15,123 18,384 21.6 16,237 16,782 17,870 18,384 2.9 Total 23,809 27,428 15.2 25,011 25,636 26,816 27,428 2.3

THE FIRST QUARTER 2013 (UNAUDITED)

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PT TELEKOMUNIKASI INDONESIA, Tbk. THE FIRST QUARTER 2013 RESULTS (UNAUDITED)

The following analysis and discussion is based on our Indonesian GAAP financial statements for the three months ended March 31, 2012 and 2013. The reports have been submitted to Indonesia Financial Services Authority (OJK).

FINANCIAL RESULTS Revenues

Key Indicators YoY QoQ (Rp. Bn) 1Q12 1Q13 Growth (%) 2Q12 3Q12 4Q12 1Q13

Growth (%)

Cellular 7,197 7,578 5.3 7,469 7,931 8,134 7,578 (6.8) Fixed Line Voice 2,805 2,494 (11.1) 2,760 2,548 2,549 2,494 (2.2) Data, Internet & IT Service (Incl.SMS) 6,115 7,347 20.1 6,627 7,348 7,534 7,347 (2.5)

Interconnection 876 1,145 30.7 1,034 1,178 1,185 1,145 (3.4) Network 306 332 8.5 318 306 278 332 19.4 Other Telco Services 497 651 31.0 716 833 599 651 8.7 Total 17,796 19,547 9.8 18,924 20,144 20,279 19,547 (3.6)

Total revenue for 1Q13 is Rp19.5 trillion, an increase of 9.8% YoY. Cellular revenues is still the largest contributor followed by Data, internet and IT services as the second contributor. Total revenue decreased by 3.6% QoQ with details are as follows:

Cellular revenues decreased by 6.8% QoQ resulting from the decrease of local and long distance usage revenue, it represents the seasonality of first quarter. It was a 5.3% YoY increase due to higher usage compared to last year.

Fixed line revenues, consisted of fixed wireline and fixed wireless voice revenues, decreased by 2.2% QoQ.

o Fixed wireline revenue decreased by 1.8% or amounting to Rp41.3 billion as a result of decrease in local and long distance usage revenues.

o Fixed wireless revenue decreased by 4.9% or amounting to Rp13.9 billion as results of decrease in postpaid usage and long distance usage revenues.

Data, Internet & IT Services revenues decreased by 2.5% QoQ. The decrease was contributed by SMS revenue that decreased by 7.1% QoQ, mostly derived from celullar SMS. On the other side, internet and data communication revenues increased by 1.4% driven by the increase in cellular data, fixed line broadband and corporate internet revenues, which compensated by the decrease of VPN data communication revenue.

Interconnection revenues decreased by 3.4% QoQ or amounting to Rp38.7 billion mostly derived from cellular interconnection.

Network revenues increased by 19.4% QoQ resulting from the increase in transponder revenue amounting to Rp35.3 billion and other lease line revenue amounting to Rp20.1 billion.

Other telecommunication services revenues increased by 8.7% QoQ as a combined impact of increase in modem revenue, tower business revenue and USO services, which compensated by the decrease in directory assistant revenue, CPE and set top box revenues.


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Expenses

Key Indicators YoY QoQ (Rp. Bn)

1Q12 1Q13 Growth (%) 2Q12 3Q12 4Q12 1Q13 Growth

(%)

Operation, Maintenance & Telecommunication Service 3,916 4,698 20.0

4,319 4,610 3,958 4,698 18.7

Personnel 2,047 2,331 13.9 2,118 2,134 3,487 2,331 (33.2) Interconnection 995 1,175 18.1 1,136 1,244 1,292 1,175 (9.1) Marketing 635 651 2.5 825 749 885 651 (26.4) General Administrative 580 643 10.9 867 769 820 643 (21.6) Depreciation & Amortization 3,465 3,462 (0.1) 3,502 3,634 3,855 3,462 (10.2) (Gain)/Loss on forex net & others net (62) (163) 162.9 77 (2) (409) (163) (60.1)

Total 11,576 12,797 10.5 12,844 13,138 13,888 12,797 (7.9) Compared to last quarter results, total expenses decreased by 7.9% with the following details:

Operation & Maintenance (O&M) expenses increased by 18.7% QoQ mostly derived from radio base station maintenance expenses since there was reclasification of tower slot lease from operating to finance lease that impacted O&M expense in 4Q12 to be lowered. Meanwhile, power and insurance expenses decreased. This insurance was related to the satellite Telkom-3 that was expensed in 4Q12.

Personnel expenses decreased by 33.2% QoQ mostly due to the absence of ERP in 1Q13 and decrease in incentives expenses compared to last quarter.

Interconnection expenses decreased by 9.1% QoQ which was contributed by decrease in cellular and international interconnection charges.

Marketing expenses decreased by 26.4% QoQ mostly due to decrease in advertising & promotion expense.

General & Administrative expenses decreased by 21.6% QoQ. The decrease contributed by the decrease in impairment for obsolete inventories and receivables, domestic training expense, social contribution expense, retribution and audit expense.

Depreciation & Amortization expenses decreased by 10.2% QoQ, mostly as a result of the decrease in switching equipment expenses and decrease in fixed assets impairment.

EBITDA, EBITDA Margin and Net Income First quarter 2013 EBITDA increased by 4.4% YoY and 2.2% QoQ to Rp10.0 trillion and resulting EBITDA margin a bit lower 2.7% YoY but increase 2.9% QoQ, to 51.4%. Net Income for 1Q13 increased by 4.7% YoY and increase 22.0% QoQ to Rp3.5 trillion. The basis to calculate the EBITDA is the expenses without depreciation & amortization expenses, forex exchange gain or loss, and others-net.


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Financial Position Key Indicators YoY QoQ (Rp. Bn)

1Q12 1Q13 Growth (%) 2Q12 3Q12 4Q12 1Q13 Growth

(%)

Assets 104,624 116,104 11.0 101,536 105,402 111,369 116,104 4.3 Liabilities 40,237 44,137 9.7 43,717 42,637 44,391 44,137 (0.6) Non-controlling Interests 14,704 16,935 15.2 12,434 14,037 15,437 16,935 9.7 Equity attributable to owners of the company 49,683 55,032 10.8 45,385 48,728 51,541 55,032 6.8

Increase in assets by 4.3% QoQ was a result of increase in current assets, this was mainly due to

increase in cash and cash equivalent.

Slight decrease in Liabilities by 0.6% QoQ was a result of decrease in obligation under finance lease.

Increase in non-controlling interest of 9.7% QoQ was due to the increase of non-controlling net assets of subsidiaries.

Increase in Equity of 6.8% QoQ was due to the increase in net income and no more share buy back program in 1Q13.

Cash Flows Key Indicators YoY (Rp. Bn) 1Q12 1Q13 Growth (%) Cash Flow from Operating Activities 8,775 7,685 (12.4) Cash Flow from Investing Activities (4,004) 81 (102.0) Cash Flow from Financing Activities (3,257) (801) (75.4) Net Increase (Decrease) in Cash & Cash Equivalent 1,514 6,965 360.0 Effect of Foreign Rate Changes 15 29 93.3 Cash & Cash Equivalents at Beginning of Periods 9,634 13,118 36.2 Cash & Cash Equivalents at End of Periods 11,163 20,112 80.2

Net cash generated from operations decreased by 12.4% YoY due to the higher cash out for expense payment in 1Q13 compared to the same period last year.

Net cash used for investment decreased by 102.0% YoY due to the cash received as the short term investment maturing (time deposits more than 3 months) in 1Q13.

Net cash used for financing activities decreased by 75.4% YoY. This was driven by the cash in from the new banks loans, the less payments for loans compared to the same period last year and there was no cash used for share buy back in 1Q31 since the last program, SBB IV, was expired in November 2012.

Debts

Currencies YoY QoQ Portion (%) (Rp. Bn) 1Q12 1Q13 Growth (%)

4Q12 1Q13 Growth (%) 1Q12 4Q12 1Q13

IDR/Rupiah 11,174 13,293 19.0 13,922 13,293 (4.5) 76.7 82.1 82.2 USD/US Dollar 2,288 1,927 (15.8) 1,998 1,927 (3.6) 15.7 11.8 11.9 JPY/Japanese Yen 1,112 951 (14.5) 1,031 951 (7.8) 7.6 6.1 5.9 Total 14,574 16,171 11.0 16,951 16,171 (4.6) 100.0 100.0 100.0


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Our debts consisted of Two-Step Loans (TSL), Bonds, Notes and Banks Loans. During first quarter 2013, we made repayment of Banks Loans, TSL, MTN and Notes of Rp871 billion, Rp20 billion, Rp8 billion and Rp51 billion, respectively. We made new debts for working capital purposes in the form of Banks loans amounting to Rp249.0 billion.

Gearing

Key Indicators YoY 1Q12 1Q13 Growth Net Debt to Equity (%) 7.7 (8.9) (16.6) Debt to Equity (%) 30.9 29.4 (1.5) Debt to EBITDA (%) 159.6 160.9 1.3 Debt Service Ratio (Times) 2.2 1.9 (0.3)

Financial Ratio Ratios YoY QoQ

(%) 1Q12 1Q13 Growth (%) 2Q12 3Q12 4Q12 1Q13

Growth (%)

Profit Margin 35.0 34.5 (0.5) 32.1 34.8 31.5 34.5 3.0 Profit for the year attributable to owners Margin 18.7 17.8 (0.9) 16.4 17.7 14.0 17.8 3.8 EBITDA Margin 54.1 51.4 (2.7) 51.0 52.8 48.5 51.4 2.9 Current Ratio 106.3 133.9 27.6 84.0 104.2 116.0 133.9 17.9 Return on Assets 3.2 3.0 (0.2) 3.1 3.4 2.6 3.0 0.4 Return on Equity 6.7 6.3 (0.4) 6.8 7.3 5.5 6.3 0.8 Total Liabilities to Equity 81.0 80.2 (0.8) 96.3 87.5 86.1 80.2 (5.9)

Telkomsel Financial Result As a result of Telkomsels efforts to monetize traffic and to further grow our data business, and also our costs management programs, we recorded a strong financial results in the first quarter 2013.

Income Statement Statement of Income YoY QoQ (Rp. Bn) 1Q12 1Q13 Growth (%)

4Q12 1Q13 Growth (%)

Revenues 12,298 13,928 13 14,673 13,928 (5) Expenses (incl. Depreciation) 7,600 8,279 9 9,331 8,279 (11) EBITDA 7,075 7,838 11 7,870 7,838 0 EBITDA Margin (%) 58 56 (2) 54 56 2 Net Income 3,505 4,294 23 3,995 4,294 7

Operating revenues for 1Q13 was Rp13.93 trillion, an increase of 13% YoY, which was driven by data broadband growth (36% growth YoY) as well as growth in voice and SMS. Revenue declined 5% QoQ due to legacy services while data broadband and digital services recorded growth. Postpaid revenue was relatively stable compared to 1Q12 at Rp1.09 trillion. It slightly increased

by 1% QoQ, due to growth from data broadband revenue growth. Prepaid revenue grew 13% YoY to Rp11.58 trillion contributed by data broadband revenue growth

as well as increase in voice and SMS services. It decreased 5% QoQ due to voice and SMS revenues.


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Interconnection and international roaming revenues increased 31% YoY to Rp1.12 trillion due to the implementation of SMS interconnection charging that commenced in June 2012. It declined 5% QoQ due to decline in domestic interconnection revenue.

For the first quarter of 2013, expenses increased by 9% YoY, lower than revenue growth of 13%. The increase was mainly from increase in operation & maintenance expenses due to accelerated network deployment strategy. It declined 11% QoQ, mainly due to decrease in sales, marketing and personnel expenses as well as lower interconnect charges. Personnel expenses increased 20% YoY to Rp579 billion, contributed by organization

restructuring program and higher employee incentive due to better financial performance in 1Q13 compared to 1Q12. It declined 20% QoQ due to lower employee allowances and incentives.

Operation & maintenance expenses grew 18% YoY to Rp3.10 trillion, in line with increased network deployed to support network capacity expansion and quality improvement. It declined 3% QoQ mainly due to lower power supply cost.

General & administration expenses increased 23% YoY to Rp243 billion due to higher business operation costs such as rental, travel and transportation costs. It declined 13% QoQ mainly due to lower expenses for training & development and professional fees.

Marketing expenses increased 25% YoY to Rp502 billion due to higher advertising & promotion costs and sales support cost in line with increased business activities. It decreased 29% QoQ due to seasonal decline in advertising & promotion costs.

Interconnection charges increased 26% to Rp785 billion, largely as a result of higher domestic interconnection due to the implementation of SMS interconnection charges. It declined 9% QoQ due to lower domestic interconnection.

Cost of Services declined 2% YoY to Rp883 billion. It was 13% lower QoQ due to lower concession fees and cost of cards.

Depreciation expenses decreased 6% YoY to Rp2.24 trillion and 2% QoQ due to combine impact of fixed-assets growth and lower depreciation from changes on estimate useful life of tower assets and retirement/disposal of fixed-assets.

Net finance costs (interest income and financing charges) increased from a net cost of Rp3 billion to a net income of Rp55 billion mainly due to higher interest income in line with higher balance of cash and cash equivalents.

EBITDA increased by 11% YoY to Rp7.84 trillion, while EBITDA margin was 56%. Net income climbed 23% YoY to Rp4.29 trillion.

Financial Position Total Assets increased 11% to Rp67.29 trillion. Total liabilities increased 1% to Rp19.17 trillion and total equity increased 15% to Rp48.13 trillion. Current assets increased 41% to Rp17.46 trillion, which was mainly from cash and cash

equivalents. Fixed assets increased slightly by 2% to Rp46.56 trillion as a result of network infrastructure

growth combined with assets retirements. Current liabilities increased 2% to Rp13.65 trillion, due mostly to an increase in unearned

revenue. Non-current liabilities declined 2% to Rp5.52 trillion mainly due to decline of medium-term loans

balance combined with increase in obligations under capital lease.


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As of March 31, 2013 Telkomsel had Rp2.81 trillion loans outstanding, of which Rp1.51 trillion was presented as current liabilities and Rp1.30 trillion as non-current liabilities.

Cash Flows We recorded a 9% increase in net cash generated from operations in 1Q13 to Rp7.40 trillion. Cash flow from investment activities increased 155% to Rp1.30 trillion due to proceed from short-term investment. It included total cash spent for fixed-assets acquisition of Rp2.36 trillion. Net cash used in financing activities fell 55% to Rp682 billion due to lower loans payment.

STATEMENT OF CASH FLOWS AS OF MARCH 31, 2012 AND 2013 (In Billions of Rupiah)

1Q12 1Q13

Cash Flow from Operating Activities 6,792 7,404 Cash Flow from Investing Activities (2,372) 1,296 Cash Flow from Financing Activities (1,502) (682) Net Increase in Cash & Cash Equivalents 2,918 8,018 Effect of Foreign Exchange Rate Changes 11 8 Cash and Cash Equivalents at Beginning of Periods 4,223 4,787 Cash and Cash Equivalents at End of Periods 7,152 12,813 Addition to Fixed Assets (incl. CIP) 2,256 2,512

Loan/ Debt Telkomsel has to observe certain agreed financial covenants related to its loans/debts. As of March 31, 2013 these covenants were as follows:

Covenant t/b maintained Required Actual

Bank Loans EBITDA to Debt Service 1.25 17.85 Debt to Tangible Net Worth 2.00 0.06


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OPERATIONAL RESULTS

Broadband Services

Customer Base Fixed Broadband

2.65 million users, grew 40.8% YoY and 13.3% QoQ.

Mobile Broadband 8.8 million Flash users, grew 67.3% YoY. Telkomsels BlackBerry customers reached 5.6 million, a 66% YoY growth. Total number of data users including of pay-as-you-use reached 49.9 million, grew 12% from the same period last year.

ARPU & Traffic Production Fixed Broadband

1Q13 ARPU was Rp146thousand, decreased of 10.3% QoQ and 22.4% YoY, caused by increasing of Speedy Instant users, prepaid service of fixed broadband.

Mobile Data & Broadband

Data traffic/payload continued to show a significant growth in 1Q13 reached 17,614 terabytes, grew 64% YoY from the same period last year.

New Products & Programs Mobile Broadband

Telkomsel launched New BlackBerry Sosialita package for simPATI users which valid from February 25 - March 30, 2013. The package allows customer to have browsing access, BBM chatting, social networking access (Facebook, Twitter & My Space), BONUS package (600 MB for streaming and downloading + 100 Minutes & 100 SMS to all Telkomsel customers + Free Music Download at LangitMusik for 30 days) and one email account ([email protected]).

Due to Telkomsels commitment to provide best product for customers life style need, Blackberry Z10 was launched on March 2013. It comes with special data packages for postpaid and prepaid, supported by HSPA data connection, speed up to 14.4 Mbps and high definition for voice quality through 4G LTE network.

Cellular Services

Customer Base As of March 2013, Telkomsel served 120.6 million customers comprising 2.2 million postpaid and 118.4 million prepaid customers. This represents an increase of 10.7 million customers and growth of 10% from a year ago.

Traffic Production & ARPU Total MOU production for 1Q13 reached 45.9 billion minutes, an increase of 7% YoY and decrease of 5% QoQ. Average RPM for 1Q13 declined 2% YoY to Rp157.

Total SMS production for 1Q13 was relatively stable at 62.3 billion units compared to 1Q12 and 4Q12. For 1Q13 average RPS reached Rp49, which was 11% higher than 1Q12.


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Blended ARPU for 1Q13 was stable compared to previous year at Rp36K and decreased by 5% compared to previous quarter.

New Products & Programs Kartu As Gokil 10 Hari Nonstop promotion was

introduced to customers in March 2013 offering bonus for voice/SMS/Internet for 10 days non-stop

Also in March 2013, Telkomsel launched Kupon Bonus simPATI in order to give more value for simPATI users. The program was launched with recharge discount coupons to be used to buy special packages (internet access, Blackberry service, voice and SMS), Rp100K discount for electronic devices at www.plasa.com, and up to 70% discount for fashion items at www.zalora.co.id.

Network Development Telkomsel continued to accelerate its network development to support the increasing data traffic by giving more focus on 3G Node-B deployment. In 1Q13, Telkomsel added 3,367 units new BTS, of which 2,325 units were 3G Node-B. Total BTS on air as at end of 1Q13 were 57,664 units, including 17,758 3G Node-Bs (75% increase YoY).

The following table presents a comparison of our cellular business performance:

Key Indicators Unit YoY QoQ

1Q12 1Q13 Growth 2Q12 3Q12 4Q12 1Q13 Growth

CUSTOMER BASE Total Customer

Postpaid (kartuHALO) Subs (000) 2,213 2,219 0.3 2,119 2,155 2,149 2,219 3.3 Prepaid (simPATI + Kartu As) Subs (000) 107,668 118,392 10.0 115,116 119,322 122,997 118,392 (3.7)

Total Subs (000) 109,881 120,611 9.8 117,235 121,477 125,146 120,611 (3.6) Net Add Postpaid (kartuHALO) Subs (000) 26 70 169.2 (95) 37 (7) 70 1,114.5 Prepaid (simPATI + Kartu As) Subs (000) 2,839 (4,606) (262.2)

7,448 4,206 3,676 (4,606) (225.3)

Total Subs (000) 2,865 (4,536) (258.3) 7,353 4,243 3,669 (4,536) (223.6) MoU (Total) Bn Minutes 43 46 7.1 45 49 48 46 (4.8) SMS (Total) Bn Units 62 62 0.5 64 64 63 62 (0.8)

ARPU Postpaid (kartuHALO) Rp.'000 per mo 183 187 2.2 185 189 199 187 (6.0) Prepaid (simPATI + Kartu As) Rp.'000 per mo 33 33 0.0 34 35 35 33 (5.7)

Blended Rp.'000 per mo 36 36 0.0 37 38 38 36 (5.3)

NETWORK DATA BTS Unit 44,796 57,664 28.7 47,254 51,005 54,297 57,664 6.2

EMPLOYEE DATA Total employees Person 4,429 4,603 3.9 4,448 4,454 4,557 4,603 1.0

Efficiency ratio 000 Subs/ employee 25 26 5.6 26 27 27 26 (4.6)


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Fixed Line Services

Customer Base Fixed Wireline

9.0 million subscribers, 4.1% growth from last year and 1.1% from last quarter.

Fixed Wireless 18.4 million subscribers, at the end of 1Q13, grew 21.6%YoY. Compare to previous quarter, fixed wireless customers increased by 2.9%.

ARPU Fixed Wireline

1Q13 ARPU was at Rp80 thousand, a decrease 3.2% QoQ.

Fixed Wireless 1Q13 ARPU was at Rp7 thousand, a 9.5% decrease QoQ.

ADDITIONAL INFORMATION

Capital Expenditure For the first quarter of 2013, paid Capex of Telkom, Telkomsel and other subsidiaries were amounting to Rp0.5trillion, Rp2.3trillion and Rp0.7 trillion respectively. Telkoms Capex was mainly utilized for deploying access and backbone infrastructure to support the broadband services, Telkomsel's Capex was utilized for radio access network. Other Subsidiaries Capex was utilized among others for erecting tower and developing infrastructure.

Recent Development Telkomsel Won Additional 3G Frequency Spectrum Ministry Communication and Information on March 5th 2013 announced that Telkomsel won an additional frequency spectrum in radio frequency band of 2.1 GHz. The additional radio frequency band allocated to Telkomsel is on the frequency range of 1970-1975 MHz and 2160 2165 MHz. Addition of this frequency made total Telkomsel 3G frequency spectrum on the 2.1 GHz to be 15 MHz. For the new frequency spectrum, Telkomsel spent Rp 564.5 billion for upfront fee and first year annual fee.

Awards & Recognition During 1Q2013, we have been awarded by several institution for our achievements, among others:

5 awards for Telkomsel in the 10th of the reputable Selular Award, including Operator of the Year, Best GSM Operator, Best BlackBerry Services, Best Postpaid for kartuHalo, dan Best Prepaid for simPATI.

The best Internet Service Provider (ISP) in Indonesia 2012 for Speedy from Chip Magazine in the event of Chip Award 2013 in Jakarta.

Most Admired CEO 2013 for CEO Arief Yahya (AY) and 19 other CEOs of top big companies in Indonesia from magazine of Warta Ekonomi in Jakarta.

CNET Asia Readers Choice Award for Telkomsel as the Best Indonesian Telco from CNET (Centre National d'tudes des Tlcommunications) Asia.


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Top Brand Award for kartuHalo (Postpaid SIM-card category) and simPATI (Prepaid SIM-card category) from Marketing Magazine and Frontier Consulting Group.

Top Brand Award for Telkomsel Flash (Mobile ISP category) and Telkomsel BlackBerry Internet Service (BlackBerry Service Provider category) from Marketing Magazine and Frontier Consulting Group.

The Indonesia Middle-Class Brand Champion 2013 for simPATI (Prepaid GSM SIM-card category) and Telkomsel Flash (Internet Provider category) from SWA Magazine and Inventure Market Research.

Indonesia Brand Champion Award 2013 for simPATI as the Most Widely Used of GSM and Telkomsel Flash as the Most Widely Used of Cable Internet Provider Brand from Marketeers Magazine and Markplus Insight.

Excellent Service Performance for Telkomsel in Contact Center Service Excellence Award (CCSEA) 2013 conducted by Marketing Magazine and Care-Center for Customer Satisfaction and Loyalty (Carre-CCSL) in Jakarta. Telkomsels Call Center has been the best for 8 consecutive years.


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Table 1 PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) (figures are presented in billions of Rupiah)

DEC 31, 2012 MAR 31, 2013 Growth (%) ASSETS CURRENT ASSETS Cash and cash equivalents 13,118 20,112 53.3 Other current financial assets 4,338 951 (78.1) Trade receivables net of provision for impairment of receivables

Related parties 701 663 (5.4) Third parties 4,522 5,216 15.3

Other receivables net of provision for impairment of receivables 186 234 25.8 Inventories net of provision for impairment obsolescence 579 703 21.4 Advances and prepaid expenses 3,721 3,583 (3.7) Claims for tax refund 436 438 0.5 Prepaid taxes 372 327 (12.1) Asset held-for-sale - 130 - Total Current Assets 27,973 32,357 15.7 NON-CURRENT ASSETS Long-term investments - net 275 272 (1.1) Property, plant and equipment net of accumulated depreciation 77,047 77,050 0.0 Prepaid pension benefit cost 1,032 1,007 (2.4) Advances and other non-current assets 3,510 3,922 11.7 Intangible assets net of accumulated amortization 1,443 1,383 (4.2) Deferred tax assets - net 89 113 27.0 Total Non-current Assets 83,396 83,747 0.4 TOTAL ASSETS 111,369 116,104 4.3


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Table 1 (Continued) PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED) (figures are presented in billions of Rupiah)

DEC 31, 2012 MAR 31, 2013 Growth (%) LIABILITIES AND EQUITY CURRENT LIABILITIES Trade payables

Related parties 432 636 47.2 Third parties 6,848 6,493 (5.2)

Other payables 176 429 143.8 Taxes payables 1,844 2,135 15.8 Accrued expenses 6,163 5,829 (5.4) Unearned income 2,729 2,940 7.7 Advances from customers and suppliers 257 275 7.0 Short-term bank loans 37 154 316.2 Current maturities of long-term liabilities 5,621 5,268 (6.3) Total Current Liabilities 24,107 24,159 0.2 NON-CURRENT LIABILITIES Deferred tax liabilities 3,059 3,099 1.3 Other liabilities 334 313 (6.3) Long service awards provisions 347 351 1.2 Post-retirement health care benefit provisions 679 682 0.4 Retirement benefits obligation and other post retirement benefits 2,248 2,382 6.0 Long-term liabilities - net of current maturities

Obligations under finance leases 1,814 1,967 8.4 Two-step loans - related party 1,791 1,698 (5.2) Bonds and Notes 3,229 3,202 (0.8) Bank loans 6,783 6,284 (7.4)

Total Non-current Liabilities 20,284 19,978 (1.5) TOTAL LIABILITIES 44,391 44,137 (0.6) EQUITY EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 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 5,040 -

Additional paid-in capital 1,073 1,073 - Treasury stock (8,067) (8,067) - Difference in value arising from restructuring transactions and other

transactions between entities under common control 478 478 - Effect of change in equity of associated companies 386 386 - Unrealized holding gain from available-for-sale securities 42 53 26.2 Translation adjustment 271 274 1.1 Difference due to acquisition of non-controlling interest in subsidiaries (508) (508) - Other reserves 49 49 - Retained earnings

Appropriated 15,337 15,337 - Inappropriate 37,440 40,917 9.3

Total Equity Attributable To Owners Of The Parent Company 51,541 55,032 6.8 Non-Controlling Interest 15,437 16,935 9.7 TOTAL EQUITY 66,978 71,967 7.4 TOTAL LIABILITIES AND EQUITY 111,369 116,104 4.3


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Table 2 PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED MARCH 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES FOR 2012 (UNAUDITED) (in billions of Rupiah, except per share and per ADS data)

2012 2013 Growth (%) REVENUES 17,796 19,547 9.8 EXPENSES

Operations, maintenance and telecommunication services (3,916) (4,698) 20.0 Depreciation and amortization (3,465) (3,462) (0.1) Personnel (2,047) (2,331) 13.9 Interconnection (995) (1,175) 18.1 Marketing (635) (651) 2.5 General and Administrative (580) (643) 10.9 Loss on foreign exchange net 16 91 468.8 Other income 180 129 (28.3) Other expense (134) (57) (57.5)

OPERATING PROFIT 6,220 6,750 8.5

Finance income 129 208 61.2 Finance costs (278) (324) 16.5 Share of loss of associated companies - (3) -

PROFIT BEFORE INCOME TAX 6.071 6,631 9.2 INCOME TAX (EXPENSE) BENEFIT

Current (1,698) (1,627) (4.2) Deferred 186 (19) (110.2)

(1,512) (1,646) 8.9 PROFIT FOR THE YEAR 4,559 4,985 9.3 OTHER COMPREHENSIVE INCOME

Foreign currency translation 2 3 50.0 Change in fair value of available-for-sale financial assets 3 11 266.7

Total Other Comprehensive Income net 5 14 180.0

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 4,564 4,999 9.5 Profit for the period attributable to:

Owners of the parent company 3,322 3,477 4.7 Non-controlling interests 1,237 1,508 21.9

4,559 4,985 9.3 Total comprehensive income for the period attributable to:

Owners of the parent company 3,327 3,491 4.9 Non-controlling interests 1,237 1,508 21.9

4,564 4,999 9.5 BASIC AND DILUTED EARNINGS PER SHARE

Income per share 172.2 181.6 5.4 Income per ADS (40 Series B shares per ADS) 6,888.0 7,263.2 5.4


15

Table 3 PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) AND SUBSIDIARIES

STATEMENT OF FINANCIAL POSITION AS OF MARCH 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED)

(figures are presented in billions of Rupiah) DEC 31, 2012 MAR 31, 2013 Growth (%) ASSETS CURRENT ASSETS

Cash & cash equivalents 4,787 12,813 167.7 Short-term Investments 4,000 350 (91.3) Accounts receivables including Unbilled revenues 1,045 1,058 1.2 Current portion of long-term prepayments 3,081 2,507 (18.6) Others 669 730 9.1 Total Current Assets 13,582 17,458 28.5

NON-CURRENT ASSETS

Long-term investment 20 20 - Fixed assets-net 46,480 46,563 0.2 Advances for fixed assets 558 527 (5.6) Intangible assets-net 680 705 3.7 Prepayments Non Current Portion 1,327 1,758 32.5 Others 270 263 (2.6) Total Non-Current Assets 49,335 49,836 1.0

TOTAL ASSETS 62,917 67,294 7.0

LIABILITIES AND EQUITY CURRENT LIABILITIES

Accounts payable & Accrued Liabilities 8,071 8,084 0.2 Taxes payable 1,075 1,393 29.6 Unearned revenue 2,323 2,564 10.4 Current maturities of medium-term & long-term loans 1,472 1,511 2.6 Current portion of obligations under finance lease 98 95 (3.1) Total Current Liabilities 13,039 13,647 4.7

NON-CURRENT LIABILITIES

Medium-term & long-term loans - net of current maturities 2,013 1,300 (35.4) Obligations under finance lease net of current maturities 1,057 1,203 13.8 Deferred tax liabilities 2,099 2,085 (0.7) Others 877 932 6.3 Total Non-current Liabilities 6,046 5,520 (8.7)

EQUITY

Capital Stock - Rp1,000,000 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 42,144 46,439 10.2 Total Equity 43,832 48,127 9.8

TOTAL LIABILITIES AND EQUITY 62,917 67,294 7.0


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Table 4 PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) AND SUBSIDIARIES

STATEMENT OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES FOR 2012 (UNAUDITED)

(figures in tables are presented in billions of Rupiah, otherwise stated) 2012 2013 Growth (%) REVENUES

Postpaid 1,091 1,095 0.4 Prepaid 10,241 11,580 13.1 Interconnection & International roaming 852 1,116 31.0 Other 114 137 20.2

Total Revenues 12,298 13,928 13.3 EXPENSES

Personnel 482 579 20.1 Operation & maintenance 2,621 3,098 18.2 General & administrative 197 243 23.4 Marketing 402 502 24.9 Interconnection 622 785 26.2 Cost of services 899 883 (1.8) Depreciation 2,391 2,245 (6.1) Others - net (14) (56) 300.0

Total Expenses 7,600 8,279 8.9

Interest income & financing charges (3) 55 1,933.3 INCOME BEFORE TAX 4,695 5,704 21.5 INCOME TAX EXPENSE 1,190 1,410 18.5 NET INCOME 3,505 4,294 22.5

EBITDA 7,075 7,838 10.8 EBITDA Margin - over revenues 58% 56% (2) ROA 23% 26% 3 ROE 34% 37% 3

PT TELEKOMUNIKASI INDONESIA, Tbk. THE FIRST QUARTER 2013 RESULTS (UNAUDITED)FINANCIAL RESULTSRevenuesExpensesEBITDA, EBITDA Margin and Net IncomeFinancial PositionCash FlowsDebtsFinancial Ratio

Telkomsel Financial ResultIncome StatementFinancial PositionCash FlowsLoan/ Debt

OPERATIONAL RESULTSBroadband ServicesCustomer BaseARPU & Traffic ProductionNew Products & Programs

Cellular ServicesCustomer BaseTraffic Production & ARPUNew Products & ProgramsNetwork Development

Fixed Line ServicesCustomer BaseARPU

ADDITIONAL INFORMATIONCapital ExpenditureRecent DevelopmentAwards & Recognition

PT Telkom InfoMemo 1Q13

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