PROPERTY, PLANT AND EQUIPMENT continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010 Figures in tables are presented in billions of Rupiah, unless otherwise stated 47

10. PROPERTY, PLANT AND EQUIPMENT continued

c. Assets impairment continued iii As of December 31, 2011 and 2010, the Company operated two satellites, Telkom-1 and Telkom-2 primarily providing backbone transmission links for its network and earth station satellite up-linking and down-linking services to domestic and international users. As of December 31, 2011, there were no events or changes in circumstances that would indicate that the carrying amount of the Company’s satellites may not be recoverable. d. Others i Interest capitalized to property under construction amounted to Rp.nil for 2011 and 2010, respectively. ii Foreign exchange loss capitalized as part of property under construction amounted to Rp.nil for 2011 and 2010, respectively. iii In 2010, the useful lives of Company’s office and installation buildings, Submarine Cable Communication SystemFiber Optic Communication System and Antenna and Tower were changed and accounted for prospectively. The impact is a reduction in the amount depreciation expense of Rp.126 billion recognized to the 2010 consolidated statement of comprehensive income Note 2l. iv In April 2011, Telkomsel decided to replace certain equipment part of infrastructure with a cost and net carrying amount of Rp.707 billion and Rp.189 billion, respectively, as part of a modernization program. Accordingly, Telkomsel changed the useful life of such equipment. The impact is an additional depreciation expense of Rp.154 billion charged to the 2011 consolidated statement of comprehensive income. Subsequently, in August 2011 and December 2011, part of the equipment with a cost of Rp.185 billion and Rp.399 billion, respectively, were derecognized. Upon derecognition, the equipment had been fully depreciated. In 2011, due to the impact of changes in technology, damage and other causes, certain equipment and software mainly part of infrastructure and supporting facilities with a cost and a net carrying amount of Rp.4,126 billion and Rp.16 billion, respectively, were derecognized. v In May 2011, the useful life of Telkomsel’s certain equipment part of supporting facilities was changed from 10 years to 6 years to reflect its current economic life. The impact is an additional depreciation expenses of Rp.295 billion charged to the 2011 consolidated statements of comprehensive income. vi Exchange of property, plant and equipment: • On January 24, 2011 and February 25, 2011, the Company and INTI entered into a purchase order of procurement and installation agreement for the Modernization of the Copper Cable Network through Optimization of Asset Copper Cable Network with Trade In Trade Off TITO mode for STO Cengkareng, STO Gandaria and STO Injoko amounting to Rp.96 billion and for STO Semanggi amounting to Rp.44 billion. In 2011, the Company has derecognised the copper cable network asset with a net book value of Rp.0.1 billion and recorded the fiber optic network asset of Rp.57 billion. • In 2011, certain equipment part of infrastructure of Telkomsel with a cost and net carrying amount of Rp.1,730 billion and Rp.547 billion, respectively, were exchanged with equipment from Nokia Siemens Network Oy and PT Huawei Tech Investment with a total price of US63 million. Certain equipment part of infrastructure of Telkomsel with a cost and net carrying amount of Rp.1,736 billion and Rp.791 billion, respectively, are going to be exchanged with equipment from Nokia Siemens Network Oy and PT Huawei Tech Investment. Accordingly, these were reclassified to assets held for sale Note 8. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010 Figures in tables are presented in billions of Rupiah, unless otherwise stated 48

10. PROPERTY, PLANT AND EQUIPMENT continued