Indosat RELATED PARTY TRANSACTIONS continued a. Government continued

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 91

44. RELATED PARTY TRANSACTIONS continued c. Indosat continued

Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to its GSM mobile cellular customers. The principal matters covered by the agreement are as follows: i. Telkomsel’s GSM mobile cellular telecommunications network is interconnected with PT Indosat’s international gateway exchanges to facilitate outgoing and incoming international calls. ii. Telkomsel’s and Indosat’s GSM mobile cellular telecommunications networks are interconnected to allow cross-network communications among their subscribers. iii. In exchange for these interconnections, Indosat is entitled to a certain amount as compensation. iv. Interconnection equipment installed by one of the parties in another party’s premises remain the property of the party installing such equipment. Expenses incurred in connection with the provision of equipment, installation and maintenance are borne by Telkomsel. The Company and its subsidiaries were charged net interconnection charges from Indosat of Rp.278,231 million and Rp.13,489 million for the nine months period ended September 30, 2007 and 2008, respectively, representing 0.61 and 0.03 of the total operating revenues in each period. Telkomsel also has an agreement with Indosat on the usage of Indosats telecommunications facilities. The agreement, which was made in 1997 and is valid for eleven years, is subject to change based on annual review and mutual agreement by both parties. The charges for the usage of the facilities amounted to Rp.9,077 million and Rp.18,951 million for the nine months period ended September 30, 2007 and 2008, respectively, representing 0.04 and 0.07 of the total operating expenses in each period. Other agreements between Telkomsel and Indosat are as follows: i. Agreement on Construction and Maintenance for Jakarta-Surabaya Cable System J-S Cable System On October 10, 1996, Telkomsel, Lintasarta, Satelindo and Indosat the “Parties” entered into an agreement on the construction and maintenance of the J-S Cable System. The Parties have formed a management committee which consists of a chairman and one representative from each of the Parties to direct the construction and operation of the cable system. The construction of the cable system was completed in 1998. In accordance with the agreement, Telkomsel shared 19.325 of the total construction costs. Operating and maintenance costs are shared based on agreed formula. Telkomsel’s share in operating and maintenance costs amounted to Rp.282 million and Rp.353 million for the nine months period ended September 30, 2007 and 2008, respectively. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 92

44. RELATED PARTY TRANSACTIONS continued c. Indosat continued