Data, internet and information technology Services revenues 3

139 PT Telkom Indonesia Persero Tbk

a. operations, Maintenance and telecommunication Service expenses

Operations, maintenance and telecommunication service expenses increased by Rp5,828 billion, or 26.1, from Rp22,288 billion in 2014 to Rp28,116 billion US2,040 million in 2015. The increase in operations, maintenance and telecommunication service expenses was primarily attributable to the following: − Operations and maintenance increase by Rp3,831 billion, or 32.4, due to an increase in expenses associated with network maintenance to improve our mobile cellular and IndiHome business performance; − Cost of handset sold increase by Rp1,072 billion, or 254.6, from Rp421 billion in 2014 to Rp1,493 billion in 2015. The increase was due to increase of modem and terminal bundling program; − Leased lines and CPE increased by Rp626 billion, or 82.6, which was used for operation and maintenance of leased lines. This increased were ofset by decreased in tower leased by Rp419 billion, or 39.3 and other expenses by Rp244 billion, or 94.6.

b. Depreciation and amortization expenses

Depreciation and amortization expenses increased by Rp1,403 billion, or 8.2, from Rp17,131 billion in 2014 to Rp18,534 billion US1,345 million in 2015, primarily due to an increase in property, plan and equiptment to improving our service to customers and accelerate ixed wireless business assets, ixed wireless assets has been fully depreciated amounted to Rp545 billion.

c. personnel expenses Personnel expenses increased by Rp2,087 billion,

or 21.3, from Rp9,787 billion in 2014 to Rp11,874 billion US861 million in 2015 due to a increased by Rp1,043 billion, or 32.8 in incentive and other beneit expenses, in line with company’s performance and a increase in early retirement program by Rp683 billion. This resulted in increase in employees income tax by Rp315 billion, or 23.9 from Rp1,317 in 2014 to Rp1,632 billion in 2015.

d. interconnection expense

Interconnection expense decreased by Rp1,307 billion, or 26.7, from Rp4,893 billion in 2014 to Rp3,586 billion US260 million in 2015 primarily due to an decrease of Rp1,288 billion, or 35.4 in domestic interconnection and transit, and international interconnection expense by Rp19 billion, or 1.5 in result of inter operator discount tarif.

e. Marketing expense

Marketing expenses increased by Rp183 billion, or 5.9, from Rp3,092 billion in 2014 to Rp3,275 billion US238 million in 2015 due to an increase in advertising and promotion expenses by Rp142 billion, or 5.9, due to the selective use of media for promotion and increased group synergy in marketing our products, mainly promotion in 4G LTE and IndiHome Triple Play.

f. general and administrative expenses General and administrative expenses increased by

Rp241 billion, or 6.1, from Rp3,963 billion in 2014 to Rp4,204 billion US305 million in 2015 primarily due in part to an increase in provision for doubtful impairment of receivables by Rp226 billion, or 28.8.

g. gain loss on foreign exchange - net Loss on foreign exchange - net increased by Rp32

billion, from Rp14 billion in 2014 to Rp46 billion US3 million in 2015.

h. other expenses Other expenses increased by Rp1,521 billion, from

Rp396 billion in 2014 to Rp1,917 billion US139 million in 2015.

3. operating proit and operating proit Margin

As a result of the foregoing, operating proit increased by Rp3,212 billion, or 11.0, from Rp29,206 billion in 2014 to Rp32,418 billion US2,351 million in 2015. Operating proit margin decreased from 32.6 in 2014 to 31.6 in 2015.

4. proit before income tax and pre-tax Margin

As a result of the foregoing, proit before income tax increased by Rp2,729 billion, or 9.5, from Rp28,613 billion in 2014 to Rp31,342 billion US2,273 million in 2015. Pre-tax margin decreased from 31.9 in 2014 to 30.6 in 2015. 140 PT Telkom Indonesia Persero Tbk

5. income tax expense

Income tax expense increased by Rp686 billion, or 9.3, from Rp7,339 billion in 2014 to Rp8,025 billion US582 million in 2015, in line with the increase in proit before income tax.

6. other Comprehensive income

Other comprehensive income decreased by Rp136 billion, or 17.7, from Rp767 billion in 2014 to Rp631 billion US46 million in 2015 was ofset by decreased in actuarial gain amounted Rp236 billion, or 31.8.

7. proit for the year attributable to owners of the parent Company

Proit for the year attributable to owners of the parent company increased by Rp1,018 billion, or 7.0, from Rp14,471 billion in 2014 to Rp15,489 billion in 2015.

8. proit for the year attributable to non- controlling interest

Proit for the year attributable to non-controlling interest increased by Rp1,025 billion, or 15.1, from Rp6,803 billion in 2014 to Rp7,828 billion US568 million in 2015.

9. net Comprehensive income for the year

Net Comprehensive income for the year increased by Rp1,907 billion, or 8.7, from Rp22,041 billion in 2014 to Rp23,948 billion US1,737 million in 2015.

10. net income per Share

Net income per share increased by Rp9.64, or 6.5, from Rp148.13 in 2014 to Rp157.77 in 2015. year enDeD DeCeMber 31, 2014 CoMpareD to year enDeD DeCeMber 31, 2013

1. revenues

Total revenues increased by Rp6,729 billion, or 8.1, from Rp82,967 billion in 2013 to Rp89,696 billion in 2014. The increase in revenues in 2014 was primarily contributed by data internet and information technology service revenues and cellular telephone revenues, and, to a lesser extent others telecomunication services revenues. 2013 2014 restated Composition of revenues 3 2 , 8 7 7 3 9 . 6 3 2 . 1 3 8 3 8 ,7 9 , 4 9 6 1 1 .4 1, 2 5 3 1. 5 2, 36 2 . 8 4 , 8 4 3 5 .8 Cellular Fixed Line Interconnection Network Other Telecommunication Service Data, Internet IT Service 3 7 ,8 8 , 3 4 , 29 3 8 . 2 4 ,7 8

5. 2

3 , 1 7 5 3.5 1, 2 8 1. 5 8.435 9 ,4 37 ,80 8 4 2 .2 in billion rupiah in billion rupiah