Company’s Board of Commissioners, Directors, Audit Committee, Corporate Secretary and employees

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010 Figures in tables are presented in billions of Rupiah, unless otherwise stated 15

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with Indonesian Financial Accounting Standars “IFAS” and Regulation of the Capital Market and Financial Institution Supervisory Board “Badan Pengawas Pasar Modal dan Lembaga Keuangan” or Bapepam-LK No. VIII.G.7 regarding “Financial Statements Presentation Guidelines” and Circular Letter No. SE-02PM2002 regarding “Financial Statements Presentation Guidelines for Issuers or Public Companies in Telecommunication Industry” and KEP-554BL2010 regarding the Amendment Regulation No. VIII.G.7 and Circular Letter No. SE-03BL2011 regarding “Financial Statements Presentation and Disclosure Guidelines for Issuers and Public Company”.

a. Basis of preparation of financial statements

The consolidated financial statements, except for the consolidated statements of cash flows, are prepared on the accrual basis of accounting. The measurement basis used is historical cost, except for available-for sale financial assets. The consolidated statements of cash flows are prepared using the direct method and present the changes in cash and cash equivalents from operating, investing and financing activities. Figures in the consolidated financial statements are rounded to and presented in billions of Indonesian Rupiah “Rp.”, unless otherwise stated. The Company has reclassified non-controlling interest as at 31 December 2010 amounting to Rp.11,996 billion as part of equity and presented the consolidated statement of financial position as at the beginning of the comparative period. Changes to the statement of financial accounting standards and interpretation to statement of financial accounting standards On January 1 , 2011, the Company and its subsidiaries adopted new and revised statements of financial accounting standards “Pernyataan Standar Akuntansi Keuangan” or “PSAK” and interpretations of statement of financial accounting standards “Interpretasi Standar Akuntansi Keuangan” or “ISAK” that are mandatory for application from that date. Changes to the Company and its subsidiaries’ accounting policies have been made as required, in accordance with the transitional provisions in the respective standards and interpretations. • PSAK 1 Revised 2009, “Presentation of Financial Statements” The revised standard prohibits the presentation of items of income and expense that is “non- owner changes in equity” in the statement of changes in equity, requiring “non-owner changes in equity” to be presented separately from owner changes in equity. All “non-owner changes in equity” are required to be shown in a performance statement. Entities can choose whether to present one performance statement the statement of comprehensive income or two statements the income statement and statement of comprehensive income. All items of income or expenses are to be presented as arising from the entity’s ordinary activities. Where entities restate or reclassify comparative information, they will be required to present a restated statement of financial position as at the beginning comparative period in addition to the current requirement to present balance sheets at the end of the current period and comparative period.