INVENTORIES Pro forma operating results related to acquisition of KSO investors and KSO IV

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 43

9. PREPAID EXPENSES

2004 2005 Rental 268,287 112,078 Salary 218,329 289,632 Frequency license - 275,359 Insurance 98,485 66,449 Telephone directory issuance cost 27,246 26,527 Other 15,722 7,824 Total 628,069 777,869

10. OTHER CURRENT ASSETS

2004 2005 Restricted time deposit - Bank Mandiri 44,608 159,537 As of December 31, 2004, the balance consists of the Company’s time deposits of US4.6 million Rp42,688 million pledged as collateral for credit facility obtained by Napsindo Note 20c and Rp1,920 million pledged as collateral for bank guarantees. As of December 31, 2005, the balance consists of the Company’s time deposits of US13.6 million Rp133,926 million and Rp25,611 million pledged as collateral for bank guarantees. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 44

11. LONG-TERM INVESTMENTS

Percentage of Opening Addition Equity in Translation Ending Ownership Balance Deduction Net Income Adjustment Balance Equity method: PT Citra Sari Makmur 25.00 52,422 - 2,331 5,363 60,116 PT Patra Telekomunikasi Indonesia 30.00 11,332 - 1,089 - 12,421 PT Pasifik Satelit Nusantara 43.69 - - - - - 63,754 - 3,420 5,363 72,537 Cost method: Bridge Mobile Pte. Ltd. 14.29 - 9,290 - - 9,290 PT Batam Bintan Telekomunikasi 5.00 587 - - - 587 PT Pembangunan Telekomunikasi Indonesia 3.18 199 - - - 199 PT Mandara Selular Indonesia 3.63 - - - - - Medianusa Pte. Ltd. - 108 108 - - - 894 9,182 - - 10,076 64,648 9,182 3,420 5,363 82,613 2004 Percentage of Opening Equity in Translation Ending Ownership Balance Addition Net Income Adjustment Balance Equity method: PT Citra Sari Makmur 25.00 60,116 - 2,480 3,658 66,254 PT Patra Telekomunikasi Indonesia 40.00 12,421 4,250 8,399 25,070 PT Pasifik Satelit Nusantara 35.50 - - - - - 72,537 4,250 10,879 3,658 91,324 Cost method: Bridge Mobile Pte. Ltd. 12.50 9,290 - - - 9,290 PT Batam Bintan Telekomunikasi 5.00 587 - - - 587 PT Pembangunan Telekomunikasi Indonesia 3.18 199 - - - 199 PT Mandara Selular Indonesia 1.33 - - - - - 10,076 - - - 10,076 82,613 4,250 10,879 3,658 101,400 2005