Legal and Compliance Risks

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3. Legal and Compliance Risks

If we are found liable for price fixing by the Indonesian Anti-Monopoly Committee and for class action allegations, we may be subjected to substantial liability which could lead to a decrease in our revenue and affect our business, reputation and profitability On June 17, 2008, the Indonesian Supervising Committee for Business Competition KPPU determined that our Company, Telkomsel, PT XL Axiata Tbk. “XL”, PT Bakrie Telecom Tbk. “Bakrie Telecom”, PT Mobile-8 Telecom Tbk. “Mobile- 8” and PT Smart Telecom “Smart Telecom” now “Smartfren” had jointly breached Article 5 of Law No.51999 and charge our Company and Telkomsel a penalty amount Rp18 billion and Rp25 billion, respectively.We and Telkomsel filled on appealed with the Bandung District Court and South Jakarta District Court on July 14, 2008 and July 11, 2008, respectively. On April 12, 2011, the Supreme Court appointed the Central Jakarta District Court to handle the appeals. Neither we nor Telkomsel has received any notification from the court with respect to the resolution of this case. As of the date of approval and authorization for the issuance of the consolidated financial statements, there has not been any notification on the case from the courtamount of which will be subject to the discretion of the District Court, which could have an adverse effect on our business, reputation and profitability. The Company is a defendant in a case filed in Makassar District Court by Andi Jindar Pakki and his affiliates over a land property at Jl. A.P. Pettarani. On May 8, 2013, the court pronounced its verdict and ordered the Company to pay fair compensation or to vacate and surrender the disputed land to the plaintiffs. In the event the Company loses the case, the Company will pay compensation to the plaintiffs amounting to Rp57.6 billion. On May 20, 2013, the Company filed an appeal to the Makassar High Court, objecting to the District Court’s ruling. In December 2013, the Makassar High Court pronounced its verdict that was favorable to the plaintiffs and the Company filed an appeal to the Supreme Court. On January 9, 2015, the Company received the SC Notice regarding the case in which rejected the Company’s appeal. On January 9, 2015, the Company received a Notice from the SC of the Republic of Indonesia, on its Decision Letter No. 226Pdt.G2012PN.Mks and the SC has rejected the Company’s appeal. On February 5, 2015, the Company requested for a judicial review of the case by the SC. There can be no assurance that other subscribers, people, or partners will not file similar cases in the future, or that we would be subject to adverse verdicts which could have an adverse effect on our business, reputation and profitability. Forward-looking statements may not be accurate This Annual Report incorporates forward-looking statements that include announcements regarding our current goals and projections of our operational performance and future business prospects. The words “believe”, “expect”, “anticipate”, “estimate”, “project” and similar words identify forward-looking statements. In addition, all statements, other than statements that contain historical facts, are forward-looking statements. While we believe that the expectations contained in these statements are reasonable, we cannot give an assurance that they will be realized. These forward-looking statements are subjected to a number of risks and uncertainties, including changes in the economic, social and political situation in Indonesia and other risks described in Risk Factors. All forward-looking statements, written or verbal, made by us or by persons on behalf of us are deemed to be subject to those risks.

4. Regulation Risks