TRANSLATION OF RUPIAH INTO UNITED STATES DOLLARS

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 29

4. CHANGES IN METHODS OF ACCOUNTING continued

a. Employee Benefits continued The effects of this restatement on previously reported consolidated financial statements as of and for the year ended December 31, 2004 for the application of PSAK 24R is summarized below. This restatement had no net effect on previously reported net cash provided by operating activities, net cash used in investing activities and net cash used in financing activities in the consolidated statements of cash flows. As Previously Reported As Restated Balance sheet: Assets: Prepaid pension benefit costs 91,262 1,362 Total non-current assets 47,065,158 46,975,258 Total assets 56,269,092 56,179,192 Liabilities: Deferred income tax liabilities - net 3,352,171 2,927,567 Accrued long service awards 572,303 449,841 Accrued post-retirement health care benefits 1,841,146 2,983,707 Accrued pension and other post-retirement benefits costs 32,007 1,479,918 Total non-current liabilities 19,392,276 21,435,682 Stockholders equity: Retained earnings - unappropriated 19,139,393 17,006,087 Total stockholders equity 20,261,342 18,128,036 Statement of income: Operating expenses - personnel 5,570,778 4,909,965 Total operating expenses 20,020,699 19,359,886 Operating income 13,927,067 14,587,880 Income before tax 12,088,582 12,749,395 Tax expense 4,003,072 4,178,526 Net income 6,129,209 6,614,568 Net income per share - in full Rupiah amount 304.03 328.10 Net income per ADS - in full Rupiah amount 12,161.13 13,124.14 PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 30

4. CHANGES IN METHODS OF ACCOUNTING continued