Employee Stock Ownership Program

CAPITAL MARKET TRADING MECHANISM AND TELKOM ADS Our common stock is listed and traded on the IDX. Our ADSs are also listed and traded on the NYSE as ADSs, where one ADS represents 200 shares of Common Stock.

A. The Indonesian Stock Market

Indonesia’s stock market, known as the IDX, grew out of the December 1, 2007 merger of two stock exchanges operating in two different locations in Indonesia, the Jakarta Stock Exchange in the capital and the Surabaya Stock Exchange in East Java. As at December 31, 2014, the IDX had 506 issuers for equity and 110 active brokerage houses. In 2014, IDX recorded a trading volume of 169 billion shares. As at December 31, 2014, the total market capitalization was valued at Rp5,227 trillion US429.5billion. Trading is divided into three segments, the regular market, negotiated market and the cash market except for rights issues, which can only be traded on the cash market and the negotiated market for the first session. The regular market is the mechanism for trading stock in standard lots on a continuous auction basis during exchange hours. Auctions on the IDX on regular market and cash market take place according to the price and time priorities. Price priority refers to the giving of priority to buying orders at a higher price or selling orders at a lower price. If buying or selling orders are placed at the same price, priority is given to the earlier placed buying or selling order time priority. Trading on the negotiated market is conducted through direct negotiation between i IDX members, ii clients through one IDX member, iii a client and an IDX member, or iv an IDX member and the PT Kliring Penjaminan Efek Indonesia “KPEI”. KPEI provides clearing and guarantee services of stock exchange transactions settlement. It also improves efficiency and certainty of transactions settlement in IDX. On November 14, 2012 IDX issued a Decree of BOD No.Kep-00399BEI11-2012 regard with the Change of Trading Regulation No. IIA on Equity – Type Securities Trading that mentioned about the change of IDX’ trading hours, which effected on January 2, 2013 with trading sessions as follow: Trading Session Market Day Trading Hours Pre-opening Regular Monday - Friday 08.45.00-08.55.00 1 st Regular Monday-Thursday 09.00.00-12.00.00 Cash Friday 09.00.00-11.30.00 Negotiation 2 nd Regular Monday-Thursday 13.30.00-15.49.59 Friday 14.00.00-15.49.59 Negotiation Monday-Thursday 13.30.00-16.15.00 Friday 14.00.00-16.15.00 Pre-closing Regular Monday-Friday 15.50.00-16.00.00 Post Trading Regular Monday-Friday 16.05.00-16.15.00 On November 8, 2013 IDX issued a Decree of BOD No.Kep-00071BEI11-2013 regard with the Change of Trading Regulation No. IIA on Equity – Type Securities Trading that mentioned about the change of lot size, tick price and maximum price movement, which effected on January 2, 2013. 92 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S