INTERCONNECTION REVENUES 2007 FS30Sep08EngFinal1

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 72

37. GENERAL AND ADMINISTRATIVE EXPENSES 2007

2008 Amortization of goodwill and other intangible assets Note 14 787,004 813,064 Collection expenses 431,425 446,653 Provision for doubtful accounts and inventory obsolescence Notes 6d and 7 377,235 444,979 Security and screening 172,292 196,097 Traveling 193,235 180,748 Training, education and recruitment 155,246 176,863 Professional fees 74,002 77,285 General and social contribution 128,710 73,485 Meetings 65,311 67,308 Vehicles rental 69,346 60,470 Stationery and printing 57,546 48,306 Research and development 4,356 7,188 Others 23,300 34,322 Total 2,539,008 2,626,768 38. TAXATION a. In 2007, Telkomsel recognized a claim for tax refund amounting to Rp.12.5 billion Note 38g as a result of its revision to the 2004 and 2005 tax returns and Rp.408 billion as a result of its objection to the 2007 tax assessment Note 38f. b. Prepaid taxes 2007 2008 Subsidiaries Corporate income tax - 73,163 Value Added Tax “VAT” - 48,334 Income tax Article 23 - Services Delivery 3,048 26,513 3,048 148,010 c. Taxes payable 2007 2008 The Company Income taxes Article 21 - Individual income tax 181,861 169,344 Article 22 - Withholding tax on goods delivery and Import 3,215 6,458 Article 23 - Withholding tax on services delivery 9,072 19,395 Article 25 - Installment of corporate income tax 5,811 5,790 Article 26 - Withholding tax on non-resident income tax 2,026 6,383 Article 29 - Underpayment of corporate income tax 409,969 363,741 VAT 281,206 253,360 893,160 824,471 PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 73

38. TAXATION continued

c. Taxes payable continued 2007 2008 Subsidiaries Income taxes Article 21 - Individual income tax 23,724 36,294 Article 22 - Withholding tax on goods delivery and import 1 2 Article 23 - Withholding tax on services delivery 29,344 65,496 Article 25 - Installment of corporate income tax 238,379 419,190 Article 26 - Withholding tax on non-resident income tax 3,956 6,862 Article 29 - Overpayment underpayment of corporate income tax 885,268 327,709 VAT 160,629 80,675 1,341,301 280,810 2,234,461 1,105,281 d. The components of income tax expense benefit are as follows: 2007 2008 Current The Company 1,258,795 1,470,362 Subsidiaries 3,935,795 3,516,696 5,194,590 4,987,058 Deferred The Company 417,924 52,968 Subsidiaries 309,205 370,352 727,129 423,320 Benefits of deferred tax from reduction in tax rate The Company - 167,079 Subsidiaries - 421,379 - 588,458 5,921,719 4,821,920 e. Corporate income tax is computed for each individual company as a separate legal entity consolidated financial statements are not applicable for computing corporate income tax in Indonesia.