Investing in strategic domestic opportunities by capitalizing on our assets

1. telecommunications Business portfolio

The Telkom Group’s telecommunications business portfolio comprises Plain Ordinary Telephone System “POTS” which covers both local and long distance calls, ixed wireless connections consisting of voice, SMS and data network package “DNP”, cellular voice and SMS services, international direct dialing “IDD”, broadband services mobile and ixed, and network and tower services.

a. Fixed Wireline Services

Our ixed wireline services include POTS, VAS ixed wireline, intelligent network “IN” services and session initiation protocol “SIP” services. After experiencing a decline, in 2011, we successfully improved the performance of this business by launching a number of new programs, such as “Telkom Poin Rejeki Tumpah” reward points and the ixed business improvement program “FBIP”. We serve 8.6 million customers, representing a market share of 99.0 of the total ixed wireline market penetration in Indonesia of 4.0 as of December 31, 2011.

b. Broadband and Internet Services

These services are ofered through a range of product lines, including TelkomNet instan, FlexiNet, wholesale port, Metro I-net, Astinet, broadband internet under the Speedy and Flash brand names, WiFi hotspots and IP transit. TelkomNet Instan is a premium postpaid internet access service that is accessible in all cities in Indonesia. In 2011 there were 40.2 thousand TelkomNet Instant customers, a decrease of 60.9 from the previous year as these were largely new internet customers who are expected to migrate to our Telkom Speedy broadband service. Our broadband internet access is provided through our existing copper cables using ADSL technology. Telkom’s substantial presence in the broadband market in Indonesia is indicated by our 12.9 million customers. Data, internet and IT services contributed 33.6 to our total revenue as of December 31, 2011. In 2011 we launched our Flexi Hotspot service that delivers high speed internet access through a wireless internet connection, supported by our Telkom Hotspot infrastructure. Subscribers can access this service, which is available in Hotspot areas, using any device equipped with a WiFi connection simply by entering their FlexiNet Unlimited or Flexi Mobile Broadband username and password. We ofer low-cost international calls through our premium VoIP service, “Telkom Global-01017”, while standard international calls are available through “Telkom Save”. Both services are accessed by dialing a special access preix. We cooperate with eight global carriers, all of which are wholesalers that allow us access to their international networks. Of these eight carriers, four are for outgoing calls, one is for incoming calls and three are for both outgoing and incoming calls. In 2011, a total of 358.6 million minutes of outgoing calls using TelkomSave and Telkom Global-01017 and incoming VoIP calls from our global partners were used. This represents an increase of 47.4 million minutes, or 15.2 in VoIP calls compared to 2010. The table below shows information about our VoIP services: Item TelkomGlobal-01017 TelkomSave Dial One Stage Two Stages Quality Technology Premium VoIP Standard VoIP

c. Cellular Services

In 2011, Telkomsel introduced a number of marketing programs that focused on new features in our cellular services. These programs strengthened our position in Indonesia’s cellular telecommunications industry, with Telkomsel’s customer base growing from 94.0 million subscribers at the end of 2010 to 107.0 million subscribers at the end of 2011, an increase of 13.8 or 13.0 million subscribers. Telkomsel’s new features in 2011 were as follows: PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications Cellular Programs Descriptions Kartu As Rp0 In January 2011, Telkomsel extended the Kartu As promotion of Rp0minutes for the irst 30 seconds. This promotion ofers a special tarif of Rp0 for the irst 30 seconds and then Rp10 per 30 seconds between 00:00-16:59 for new customers who have activated their starter packs since December 22, 2010. Customers also receive an additional 5,000 SMS to all operators, Facebook and chatting. Flash Unlimited A Rp50,000 Flash Unlimited broadband package was launched in February 2011. Users who activated their Flash Unlimited starter pack between February 10 and June 30, 2011 were able to access 300-800 MB of data, with a maximum access speed of 384 Kbps, valid for 30 days. simPATI Gratis Nelpon Berjam-jam A new pulse free package for simPATI Freedom was launched in March 2011. The simPATI Gratis Nelpon Berjam-jam package is for customers who activate their starter packs as of March 10, 2011, and after being charged for one minute cumulative to any Telkomsel number, customers can make free calls from 00:00-05:59 and 06:00 – 10:59. simPATI Double TalkMania A new version of the simPATI Double TalkMania program was launched in March 2011. For a daily registration fee of Rp2,000 01:00-18:00 or Rp3,000 17:00-24:00, this program ofers 50-100 minutes of calls and an additional 100 minutes of calls. The additional 100 minutes are given the day after registration and can be used between 00:00 and 06:00. Flash Midnight Sale In April 2011, the Flash Midnight Sale promo was launched for Flash, simPATI and Kartu As users, allowing them to choose from unlimited internet access packages worth Rp25,000 and Rp50,000 for usage at night between 00:00 and 05:59 with an access speed of 2 Mbps, valid for 30 days. Kartu As Ozone The Kartu As Ozone modiied the Kartu As Rp0 promotion in April 2011, ofering tarif segmentation with the same eight regions as before but four diferent time bands except Papua and Maluku. A Rp0 tarif is ofered for the irst 30 seconds and Rp20minutes thereafter up to 30 minutes in the 00:00-05:59 and 06:00-10:59 time bands except Sulawesi East Nusa Tenggara and Papua Maluku. Diferent tarif calculation also applies for each region in the 11:00-16:59 and 17:00-23:59 time bands. Special SMS tarifs are also available in the promotion. Unlimited Data BlackBerry Roaming Unlimited Data Roaming Unlimited BlackBerry Roaming Programs were launched in May 2011, ofering special tarifs for general packet radio service “GPRS” roaming in 38 countries through a cooperation with 54 operators on 5 continents. Speedy Flash Telkomsel and Telkom jointly launched a Speedy Flash promo package in May 2011, using DSL and HSDPAUMTSEDGEGPRS technology for their internet connections. HALOTalk The HALOTalk program was launched in June 2011 for kartuHALO postpaid subscribers with a daily charge for on-net calls ARPU of less than Rp15,000. At the same time, the Halo Cek CLS feature was activated. This program ofers price packages ranging from Rp1,000 to Rp15,000 with an additional 10-150 minutes of calls to any Telkomsel number local non-local until 23:59 every day. Telkomsel Tap Izy Telkomsel’s Tap Izy promo was launched in July 2011 as an innovative T-Cash mobile payment service that uses contact-less technology with Radio Frequency Identiication “RFID” for secure transaction security. By connecting a cellular device equipped with a chip inserted into the SIM card kartuHALO simPATI with a terminal reader device, customers can make transactions securely. The RF-SIM card is available for Rp50.000 at GraPARI outlets. Cash payments or deposits of Rp25,000 to Rp1,000,000 can also be made at GraPARI outlets or Indomaret stores. Kartu As Bonus 60 Minutes A Rp1,000 promo package was launched in July 2011 for all Kartu As users with a tarif of Rp0 and Ozone except for customers in East Nusa Tenggara, Maluku Papua. This promo also ofered 60 minutes of free calls for all Telkomsel’s subscribers. Kartu As Extra Ampuh A new package with a new tarif scheme from Kartu As that was launched in August 2011. It ofers tarif segmentation with seven zones and is valid for 24 hours. 300 minutes of bonus talk is provided after having chargeable calls at Rp25second except Sulawesi. A bonus of 1,000 SMS to all operators after sending chargeable SMS at Rp150SMS is also available. Kartu As BonbAStis A new promotion for Kartu As users with a Rp0 tariff scheme, launched in September 2011. Customers earn a cashback usage bonus through pulses after, having on-network usage voice or SMS. Telkomsel Skype Go Mobile Unlimited data package Skype to Skype Call Chat service for all Telkomsel’s customers, launched in October 2011. It is available by downloading the oicial application at http:m.skype.com and registering through 363 or SMS “SKYPE” to 3636. There are 24 types of mobile phone that are enabled for this service. simPATI Bonus Surprise A new promotion in November 2011 for all simPATI users with 100 MB of internet access and 100 minutes on-network call bonus after recharging top-up at a minimum of Rp10,000. Facebook SIM Card A new prepaid starter pack worth Rp3,000 was launched in December 2011, ofering easy access to Facebook from handsets with a preloaded bonus of at Rp3,000 of pulses, a 10MB data package and free access to http:m.facebook.com. Kartu As 30 Hours Bonus Talk A new promotion for Kartu As users was launched in December 2011, for ofering bonus conversation to be used within 30 hours on-network and thousands of bonus SMS after reach a certain level of accumulated usage. simPATI Puas 2 The simPATI Puas 2 promo launched in December 2011 ofers an attractive package of calls, SMS and internet access. PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications