Interest rate risk continued

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 135

53. RECENT ACCOUNTING PRONOUNCEMENTS IN INDONESIA

The recent accounting pronouncements in Indonesia that are relevant to the Company and its subsidiaries are as follow: i PSAK 24 Revised 2010, “Employee Benefits”. In February 2010, the DSAK issued PSAK 24 Revised 2010, “Employee Benefits” which amends PSAK 24 Revised 2004, “Employee Benefits”. The objective of this Standard is to prescribe the accounting and disclosure for employee benefits. The Standard requires an entity to recognise: a a liability when an employee has provided service in exchange for employee benefits to be paid in the future; and, b an expense when the entity consumes the economic benefit arising from service provided by an employee in exchange for employee benefits. PSAK 24 Revised 2010 shall be effective for the reporting period beginning on or after January 1, 2012. Early application is prohibited. The company and its subsidiaries are currently assessing the impact of the requirement of PSAK 24 Revised 2010, “Employee Benefits” on the consolidated financial statements. ii PSAK 46 Revised 2010, “Income Tax”. In August 2010, the DSAK issued PSAK 46 Revised 2010, “Income Tax” which amends PSAK 46 Revised 1994, “Accounting for Income Tax”. The objective of this Standard is to prescribe the accounting treatment for income taxes. The principal issue in accounting for income taxes is how to account for the current and future tax consequences of: a the future recovery settlement of the carrying amount of assets liabilities that are recognised in an entitys statement of financial position; and b transactions and other events of the current period that are recognised in an entitys financial statements. PSAK 46 Revised 2010 shall be effective for the reporting period beginning on or after January 1, 2012. Early application is encouraged. However, for entities that do business combination in accordance with the requirements of PSAK 22 revised 2010, “Business Combination” is required to make early application. The company and its subsidiaries are currently assessing the impact of the requirement of PSAK 46 Revised 2010, “Income Tax” on the consolidated financial statements. iii PSAK 50 Revised 2010, “Financial Instruments: Presentation”. In May 2010, the DSAK issued PSAK 50 Revised 2010, “Financial Instruments: Presentation” which amends PSAK 50 Revised 2006, “Financial Instruments: Presentation and Disclosures”. The objective of this Standard is to establish principles for presenting financial instruments as liabilities or equity and for offsetting financial assets and financial liabilities. It applies to the classification of financial instruments, from the perspective of the issuer, into financial assets, financial liabilities and equity instruments; the classification of related interest, dividends, losses and gains; and the circumstances in which financial assets and financial liabilities should be offset. PSAK 50 Revised 2010 shall be effective for the reporting period beginning on or after January 1, 2012 and prospectively applied. Early application is encouraged. The company and its subsidiaries are currently assessing the impact of the requirement of PSAK 50 Revised 2010, “Financial Instruments: Presentation” on the consolidated financial statements. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 136

53. RECENT ACCOUNTING PRONOUNCEMENTS IN INDONESIA continued

iv PSAK 60, “Financial Instruments: Disclosures”. In May 2010, the DSAK issued PSAK 60, “Financial Instruments: Disclosures” which amends PSAK 50 Revised 2006, “Financial Instruments: Presentation and Disclosures”. The objective of this IFRS is to require entities to provide disclosures in their financial statements that enable users to evaluate: a the significance of financial instruments for the entitys financial position and performance; and b the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the end of the reporting period, and how the entity manages those risks. PSAK 60 shall be effective for the reporting period beginning on or after January 1, 2012 and prospectively applied. Early application is encouraged. The company and its subsidiaries are currently assessing the impact of the requirement of PSAK 60, “Financial Instruments: Disclosures” on the consolidated financial statements. v PSAK 56 Revised 2010, “Earnings per Share”. In April 2011, the DSAK issued PSAK 56 Revised 2010, “Earnings per Share” which amends PSAK 56 1999, “Earnings per Share”. The objective of this Standard is to prescribe principles for the determination and presentation of earnings per share, so as to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity. PSAK 56 Revised 2010 shall be effective for the reporting period beginning on or after January 1, 2012. The company and its subsidiaries are currently assessing the impact of the requirement of PSAK 56 Revised 2010, “Earnings per Share” on the consolidated financial statements. vi ISAK 15, ”PSAK 24 - The Limit on a Defined Benefit Asset”. In April 2010, the DSAK issued ISAK 15, ”PSAK 24 - The Limit on a Defined Benefit Asset”. This Interpretation applies to all post-employment defined benefits and other long-term employee defined benefits. ISAK 15 shall be effective for the reporting period beginning on or after January 1, 2012. Early application is prohibited. The company and its subsidiaries are currently assessing the impact of the requirement of ISAK 15, ”PSAK 24 - The Limit on a Defined Benefit Asset” on the consolidated financial statements. vii ISAK 20, “Income Taxes - Changes in the Tax Status of an Entity or its Shareholders”. In August 2010, the DSAK issued ISAK 20, “Income Taxes - Changes in the Tax Status of an Entity or its Shareholders”. A change in the tax status of an entity or of its shareholders may have consequences for an entity by increasing or decreasing its tax liabilities or assets. This may, for example, occur upon the public listing of an entitys equity instruments or upon the restructuring of an entitys equity. It may also occur upon a controlling shareholders move to a foreign country. As a result of such an event, an entity may be taxed differently; it may for example gain or lose tax incentives or become subject to a different rate of tax in the future. ISAK 20 shall be effective for the reporting period beginning on or after January 1, 2012. Early application is encouraged. The company and its subsidiaries are currently assessing the impact of the requirement of ISAK 20, “Income Taxes - Changes in the Tax Status of an Entity or its Shareholders” on the consolidated financial statements.