Additional Paid-in Capital - net

PT TRIKOMSEL OKE Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2009 and 2008 Expressed in Rupiah Unless Otherwise Stated 12 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued n. Estimated Liabilities for Employees’ Benefits The Company recognizes an unfunded employee benefit liabilities in accordance with Labor Law No. 13 year 2003 dated March 25, 2003 “the Law” as accounted for under SFAS No. 24 Revised 2004, “Employee Benefits”. . Under SFAS No. 24 Revised 2004, the cost of providing employee benefit under the Law is determined using the Projected Unit Credit method. Actuarial gains and losses are recognized as income or expense when the net cumulative unrecognized actuarial gains and losses for each individual plan at the end of the previous reporting year exceeded 10 of the present value of the defined benefit obligation at that date. These gains or losses are recognized on a straight line basis over the expected average remaining working lives of the employees. Further, past service costs arising from the introduction of a defined benefit plan or changes in the benefit payable of an existing plan are required to be amortized over the period until the benefits concerned become vested.

o. Revenue and Expense Recognition

Revenue is recognized when the goods are delivered and their risks and rewards have been passed to the customers. Revenue from service warranty is recognized as earned. Revenues from consignment sales are recognized at the amounts of the sales of consignment goods to customers, while the related costs are recognized at the amounts due to consignors as part of revenues. Revenue from sales of reload vouchers are recognized at the time cash is received. Expenses are recognized when incurred accrual basis.

p. Deferred Charges - Borrowing Cost

Significant costs incurred in obtaining long-term financing facility are deferred and presented as part of “Other Non-Current Assets - net - Deferred Charges, net - Syndication Borrowing Costs” account, which are amortized on a straight-line basis over the term of the related facility. If the Company shall be in default either due to technical default or non-payment of the principal and interest with the consequences of the loan to become immediately due and demandable the related deferred charges on borrowing cost shall be charged to the consolidated statement of income for the year.

q. Basic Earnings per Share

Basic earnings per share is computed by dividing net income for the year with the weighted- average number of shares outstanding during the year. The weighted-average numbers of shares outstanding for the years ended December 31, 2009 and 2008 were 4,157,010,137 shares and 2,252,116,717 shares, respectively Note 18.

r. Segment Information

The Company’s and Subsidiaries’ segment information is presented based on business segments, as the primary segment, and distribution channel segments, as the secondary segment. Business segments provide products or services that are subject to risks and returns that are different from those of other business segments. Distribution channel segments are distinguishable components that are engaged in distributing products or services through particular distribution channels that are subject to risks and returns that are different from those of components distributing products or services through other distribution channel. PT TRIKOMSEL OKE Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2009 and 2008 Expressed in Rupiah Unless Otherwise Stated 13

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued r. Segment Information continued

The Company does not present information related to geographical segment because the Company’s management is of the opinion that the Company operates under an economic environment which is subject to the same risks and returns.

s. Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimations and assumptions that effect amounts reported therein. Due to inherent uncertainty in making estimates, actual results reported in future periods may be based on amounts differ from those estimates. 3. ACQUISITION OF A SUBSIDIARY As of November 25, 2008, the Company acquired 100 share ownership in Trikomsel Pte. Ltd., a company based in Singapore, which is engaged in the sales distribution of cellullar phones, at its book value of SGD1 from Mr. Sugiono Wiyono Sugialam, the Company’s President Director and shareholder. On the same date, the Company increased its investment in Trikomsel Pte. Ltd. by SGD1,299,999 with total investment to become SGD1,300,000. Further, to extend its networks and customer’s base, the Company entered into an agreement with Trikomsel Pte. Ltd., whereby Trikomsel Pte. Ltd is appointed by the Company to market cellular phones in overseas using formal distribution channels under license of the Company. 4. ESTABLISHMENT OF A SUBSIDIARY In accordance with a Notarial Deed dated October 1, 2009 of Lilik Kristiwati, S.H., the Company established PT Okeshop OkeShop, which engaged in trading of multimedia devices, computers, cellular phones, accessories and spareparts. The establishment of OkeShop was approved by the Ministry of Laws and Human Rights of the Republic of Indonesia in its Decision Letter No. AHU- 57725.AH.01.01.Tahun 2009 dated November 25, 2009. The share capital of Rp25,000,000 was subscribed by the Company and PT Delta Sarana Pradana DSP at Rp24,975,000 and Rp25,000, respectively, resulting in shares ownership of 99.90 and 0.10, respectively. As of December 31, 2009, OkeShop has not yet started its commercial operations. On February 8, 2010 and March 17, 2010, the Company sent disclosure statements to the Chairman of the Capital Market Supervisory Agency regarding the establishment of OkeShop, a Subsidiary, stating that the Company is still studying the operational establishment of OkeShop.