PROPERTY, PLANT AND EQUIPMENT continued

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010 SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated 46

11. PROPERTY, PLANT AND EQUIPMENT continued

c. Assets impairment and related claims continued vi On June 16, 2010, Irian Jaya Islands and its surrounding, area of East CSD East Indonesian Regional experienced an earthquake from which insurance claim for the replacement of the assets has been made. Buildings and other equipments affected by the earthquake have been re-operated gradually since June 2010. d. Others i Interest capitalized to property under construction amounted to Rp.nil for the six months period ended June 30, 2009 and 2010, respectively. ii Foreign exchange loss capitalized as part of property under construction amounted to Rp.nil for the six months period ended June 30, 2009 and 2010, respectively. iii In 2009, certain Telkomsel’s software and equipment part of infrastructure and supporting facilities with a net carrying amount of Rp.1,163,657 million were planned to be used until 2011, hence the depreciation of the assets is accelerated until 2011. The accumulative effect of accelerated depreciation is Rp.193,569 million, Rp.165,916 million of which charged to the current period consolidated statement of income. iv In 2009, the useful life of certain Telkomsel’s equipment part of supporting facilities was changed from 10 years to 5 years to reflect its current economic life. The cumulative effect of accelerated depreciation is Rp.206,541 million, Rp.124,252 million of which charged was charged to the current period consolidated statement of income. v In 2008, certain Telkomsel’s equipment part of infrastructure with a net carrying amount of Rp.352,862 million and for which the useful life was previously expected to be beyond 2010, would only be used until 2010. Moreover, due to recent technological development, those equipment were only used until December 31, 2009.Hence the equipments were depreciated up to this date. Subsequently, those equipment with a cost of Rp.774,046 million were written off. The accelerated depreciation expense of Rp.16,985 million was charged to 2009 consolidated of income. vi The Company and its subsidiaries own several pieces of land located throughout Indonesia with Building Use Rights “Hak Guna Bangunan” or “HGB” for a period of 15-45 years, which will expire between 2011 and 2052. Management believes that there will be no difficulty in obtaining the extension of the land rights when they expire. vii The Company was granted the right to use certain parcels of land by the Ministry of Communications and Information Technology of the Republic of Indonesia formerly Ministry of Tourism, Post and Telecommunications where they were still under the name of the Ministry of Tourism, Post and Telecommunications and the Ministry of Transportation of the Republic of Indonesia. The transfer to the Company of the legal title of ownership on those parcels of land is still in progress. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010 SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated 47

11. PROPERTY, PLANT AND EQUIPMENT continued