Provision Retirement benefits SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued w. Dividends

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 41

3. BUSINESS COMBINATIONS continued a. Acquisitions continued

Acquisition of Patrakom continued Patrakom is a satellite-based closed fixed telecommunications network operator and as provider of communications solutions and network with a permit as Operator of Micro Earth Stations Communications Systems “SKSBM” in partnership with manufacturers of telecommunications equipment to serve various companies.Through the acquisition of Patrakom, the Company canintegrate Patrakom’s business activities in accordance with the Company’s business development plan. The fair values of the assets acquired and liability transferred at the acquisition dates are as follows: GCI Patrakom Total Cash and equivalents 3 39 42 Other current assets 18 122 140 Property and equipment Note 11 225 171 396 Current liabilities 15 171 186 Non-current liabilities 16 45 61 Fair value of the identifiable net assets acquired 215 116 331 Bargain purchase 42 - 42 Fair value of previously held equity interests - 46 46 Fair value of the consideration transferred 173 70 243 The excess of fair value of the identifiable net assets acquired over the fair value of the consideration transferred, amounting Rp42 billion, was recorded as other income in the consolidated statement of comprehensive income of the year 2013. Cost related to the acquisition amounting to Rp4.3 billion was incurred in 2013. The business combination transactions mentioned above complied to the related Bapepam-LK Regulations. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 42

3. BUSINESS COMBINATIONS continued a. Acquisitions continued

Acquisition of Contact Centres Australia Pty. Ltd On September 25, 2014, TII through Telkom Australia signed a Sales and Purchase of Shares Agreement and subscription with Contact Centres Australia Pty. Ltd “CCA” for the Telkom Australia’s acquistion of the 75 ownership in CCA for AUD11 million. CCA, established in 2002, is owned by a company in Australia and located in Surry Hills, Sidney. The company is engaged in Business Process Outsourcing “BPO” solution comprehensively and integrated to end to end services. As of the release date of this consolidated financial statements, purchase price allocation calculation is in progress by independent appraisal.

b. Disposal of Indonusa

On October 8, 2013, the Company sold 80 of its ownership in Indonusa to PT Trans Corpora and PT Trans Media Corpora for Rp926 billion. Further, on the same date, the Company, Metra and PT Trans Corpora signed a Shareholders Agreement that establishes mutual relationship among the shareholders of Indonusa, including the grant of the right to the Company and Metra to sell their 20 remaining ownership in Indonusa to PT Trans Corpora at any time in 24 months after the second year ofthe closing transaction at a certain price Put Option. The Company had received the full payment for the sale transaction. The Company recognized the gain on sale of Indonusa shares in the consolidated statement of comprehensive income of the year 2013 as follows: Amount Fair value of considerations received: Cash 926 Put Option 289 Fair value of interest retained in Indonusa Note 10 182 Carrying amount of assets and liabilities of Indonusa 14 Gain on sale of shares 1,383