9,513 Significant agreements with related parties

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2015 and for the Six Months Period Then Ended Unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 109

36. RELATED PARTY TRANSACTIONS continued c. Significant agreements with related parties continued

ii. Indosat continued The Company has been handling customer billings and collections for Indosat. Indosat is gradually taking over the activities and performing its own direct billing and collection. The Company receives compensation from Indosat computed at 1 of the collections made by the Company starting from January 1, 1995, as well as the billing process expenses which are fixed at a certain amount per record. On December 11, 2008, the Company and Indosat agreed to implement IDD service charge tariff which already took into account the compensation for billing and collection. The agreement is valid and effective starting from January to December 2012, and can be applied until a new agreement becomes available. On December 28, 2006, the Company and Indosat signed amendments on the interconnection agreements for the fixed line networks local, SLJJ and international and mobile network for the implementation of the cost-based tariff obligations under the MoCI Regulations No. 8Year 2006 Note 38. These amendments took effect on January 1, 2007. Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to its GSM mobile cellular customers. The Company provides leased lines to Indosat and subsidiaries, namely PT Indosat Mega Media and Lintasarta. The leased lines can be used by these companies for telephone, telegraph, data, telex, facsimile or other telecommunication services. iii. Others The Company has entered into agreements with associated companies, namely CSM and Gratika for the utilization of the Companys satellite transponders or frequency channels of communication satellite and leased lines. Kisel is a co-operative that was established by Telkomsel PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2015 and for the Six Months Period Then Ended Unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 110

37. OPERATING SEGMENT

The Group has four main operating segments, namely personal, home, corporate and others. The personal segment provides mobile cellular and fixed wireless telecommunications services to individual customers. The home segment provides fixed wireline telecommunications services, pay TV, data and internet services to home customers. The corporate segment provides telecommunications services, including interconnection, leased lines, satellite, VSAT, contact center, broadband access, information technology services, data and internet services to companies and institutions. Operating segments that are not monitored separately by the Chief Operation Decision Maker are presented as Others, which provides building management services. No operating segments have been aggregated to form the operating segments of personal, home and others, while corporate operating segment is aggregated from business, enterprise, wholesale and international operating segments since they have the similar economic characteristics and similar in other qualitative criteria such as providing similar network services and serving corporate customers. Management monitors the operating results of the business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements. However, the financing activities and income taxes are not separately monitored and are not allocated to operating segments. Segment revenues and expenses include transactions between operating segments and are accounted at market prices. 2015 Total before Total Corporate Home Personal Others elimination Elimination consolidated Segment results Revenues External revenues 10,844 3,701 34,144 151 48,840 - 48,840 Inter-segment revenues 6,328 1,982 1,369 937 10,616 10,616 - Total segment revenues 17,172 5,683 35,513 1,088 59,456 10,616 48,840 Expenses External expenses 9,606 3,033 20,141 937 33,717 - 33,717 Inter-segment expenses 3,595 2,122 4,875 24 10,616 10,616 - Total segment expenses 13,201 5,155 25,016 961 44,333 10,616 33,717 Segment results 3,971 528 10,497 127 15,123 - 15,123 Capital expenditures 3,844 1,746 5,931 418 11,939 - 11,939 Depreciation and amortization 1,024 621 7,111 37 8,793 - 8,793 Provision for impairment of receivables 230 106 133 2 471 - 471