Joint Operation Schemes “Kerja Sama Operasi” or “KSO”

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 30 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued p. Revenue and expense recognition continued i. Implementation of PPSAK 1 “Withdrawal of PSAK 35 Accounting for Telecommunication Services” continued • presentation of the interconnection revenues from a “net” to a “gross” basis; • reclassification of outgoing calls to other operators from interconnection revenues to telephone revenues; • deferral of the installation and connection revenues including incremental costs and recognized as income over the expected term of the customer relationships Notes 2p.ii and 2p.iii; and • recognition of Revenue-Sharing Arrangements “RSA” in a manner similar to capital leases where the property, plant and equipment and obligation under RSA are reflected on the consolidated statement of financial position as “Property, plant and equipment” and “RSA liabilities under capital lease”, respectively. All revenues generated from the RSA are recorded as a component of operating revenues, while a portion of the investors’ share of the revenues from the RSA is recorded as interest expense with the balance treated as a reduction of the obligation under RSA. As a result of the changes, the comparative figures in the consolidated financial statements have been restated as follow: Before After restatement Restatement restatement CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THREE MONTHS PERIOD ENDED MARCH 31, 2010: Operating Revenues 16,587,322 230,986 16,356,336 Operating Expenses 11,265,565 228,757 11,036,808 Other Expenses 182,809 256 183,065 Income Before Tax 5,138,948 2,485 5,136,463 Tax Expense 1,372,379 12,159 1,360,220 Net Income 3,766,569 9,674 3,776,243 Basic Earnings Per Share Net income per share 141.16 0.49 141.65 Net income per ADS 40 Series B shares per ADS 5,646.40 19.6 5,666.00 PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 31 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued p. Revenue and expense recognition continued