Master Tower Lease Agreement

PT XL AXIATA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Page 64

35. SUBSEQUENT EVENTS continued

The Composition of the Company’s shareholders after Prívate Placement are as follows: Number of shares Amount Rp Indocel Holding Sdn. Bhd. formerly Nynex Indocel Holding Sdn. 5,674,125,290 567,412 66.70 Emirates Telecommunications Corporation Etisalat International Indonesia Ltd. 1,132,497,500 113,250 13.30 Public 1,701,377,210 170,138 20.00 8,508,000,000 850,800 100.00 c. On 9 April 2010, the Company cancelled the remaining EKN loan under Facilty B amounted to USD 35,718,521.

36. FINANCIAL ASSETS AND LIABILITIES

Financial risk management The Company’s activities expose it to variety of financial risks: market risk including foreign exchange risk and interest rate risk, credit risk and liquidity risk. The Company’s overall financial risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Company. The Company uses derivative financial instruments such as foreign exchange forward contracts, cross currency swap and interest rate swaps to hedge certain risk exposures. Derivatives are exclusively used for hedging purposes, i.e. not as trading or other speculative instruments. Financial risk management is carried out by a central treasury department under policies approved by the Board of Directors. Treasury department identifies, evaluates and hedges financial risks. Foreign exchange risk Changes in exchange rates have affected and may continue to affect the Company’s results of operations and cash flows. Some of the Company’s debt obligations and capital expenditures are, and expected will continue to be, denominated in U.S. dollars. Most of the Company’s revenues are denominated in Rupiah. The Company currently hedge a portion of its foreign currency exposure principally because the annual USD-denominated operating revenue is less than the sum of USD-denominated capital expenditures, annual payments of USD-denominated principal and interest payments. In an effort to manage foreign currency exposure, the Company enters into forward contracts currency contracts and cross currency swap contracts with international financial institutions. For the forward contracts, the Company typically pays a fixed rate premium. As a result of these contractual arrangements, the Company believes that it has reduced some of foreign exchange risk exposure although not all of our foreign exchange exposure is hedged and replacement hedging agreements may not be available when the current hedging agreements expire. PT XL AXIATA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Page 65

36. FINANCIAL ASSETS AND LIABILITIES continued

Interest rate risk Interest rate exposure is monitored to minimise any negative impact to the Company. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. To measure market risk fluctuations in interest rates, the Company primarily uses interest margin and spread analysis, and enters into cross currency and interest rate swap contracts to hedge the foreign currency interest loans from interest rate uncertainty. The following table represents a breakdown of the Company’s financial asset and financial liabilities which are impacted by interest rates. 31032010 Floating rate Fixed Rate Non Less than More than Less than More than interest one year one year one year one year bearing Total Asset Cash and cash equivalents 1,383,405 - - - - 1,383,405 Trade receivables - - - - 696,482 696,482 Other receivables - - - - 17,101 17,101 Derivative receivables - - - 50,125 - 50,125 Other assets - - 36,036 296,568 - 332,604 Total financial assets 1,383,405 - 36,036 346,693 713,583 2,479,717 Liabilities Trade payables - - - - 2,167,645 2,167,645 Accrued expenses - - - - 567,755 567,755 Derivative payables - - 151,062 106,811 - 257,873 Long-term l oans 3,081,980 8,526,796 - - - 11,608,776 Long-term bonds - - - 1,496,723 - 1,496,723 Total financial liabilites 3,081,980 8,526,796 151,062 1,603,534 2,735,400 16,098,772 Total interest repricing gap 1,698,575 8,526,796 115,026 1,256,841 - 11,597,238 Credit risk Credit risk arises from favourable derivatives financial instruments with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables. For banks, only independent parties with a good rating are accepted. The compliance with a credit limits by customers is regularly monitored by line management. Sales to retailers are required to be settled in cash. For derivative financial instruments, management has established criteria such that, only independent parties with a good rating are accepted.