Use of estimates SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

PT XL AXIATA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Page 25

5. TRADE RECEIVABLES - THIRD PARTIES continued

31122007 31122008 31122009 31032009 31032010 International partners continued - Unifone Pte. Ltd. 4,492 - - - - - Others individual amount less than Rp 3,000 18,922 14,618 7,997 12,342 6,547 36,473 32,159 23,431 30,483 11,234 376,002 419,902 355,490 463,226 625,742 Allowance for doubtful accounts 119,005 103,182 83,604 115,588 86,536 256,997 316,720 271,886 347,638 539,206 The aging analysis of trade receivables is as follows: 31122007 31122008 31122009 31032009 3103 2010 Current 152,246 176,458 207,066 126,238 288,773 Overdue 1 - 30 days 56,867 50,198 57,975 54,353 59,568 Overdue 31 - 60 days 23,317 46,340 29,004 32,055 45,024 Overdue 61 days 143,572 146,906 61,445 250,580 232,377 376,002 419,902 355,490 463,226 625,742 Changes in the amounts of the allowance for doubtful accounts are detailed as follows: 31122007 31122008 31122009 31032009 3103 2010 Allowance for doubtful accounts - beginning 84,816 119,005 103,182 103,182 83,604 Bad debt expenses 58,862 59,376 41,769 12,469 2,946 Doubtful debts written off 24,673 75,199 61,347 63 14 Allowance for doubtful accounts - ending 119,005 103,182 83,604 115,588 86,536 Based on a review of the collectibility of the individual receivable accounts, management believes that the allowance for doubtful accounts is sufficient to cover losses from non-collection of these accounts.

6. ADVANCES AND PREPAYMENTS

This account represents advances to employees, related parties and third parties for payment of the Company’s operational expenses, such as utilities, customs duties and prepaid expenses for rental, insurance, maintenance and 3G annual fee. 31122007 31122008 31122009 31032009 3103 2010 Prepaid rental - current 147,700 236,124 300,353 338,530 419,526 3G annual fee 11,929 19,411 35,195 193,573 269,627 Other prepaid expenses - current 55,783 101,354 140,045 130,435 166,610 Advances on operational expenses 4,493 21,371 6,064 12,260 5,963 219,905 378,260 481,657 674,798 861,726 Refer to Note 26 for related party information. PT XL AXIATA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Page 26

7. OTHER ASSETS

31122007 31122008 31122009 31032009 3103 2010 Prepaid rental - non-current 666,379 823,066 764,717 844,076 734,122 Other prepaid expenses - non-current 4,106 122,161 201,349 183,888 201,107 Downpayment to suppliers 167,877 135,595 10,551 77,291 103,548 Restricted bank deposits and cash in bank 856 17,386 15,305 18,484 14,869 Deferred charges 12,341 8,560 51,392 30,877 13,027 Others 10,742 12,993 12,234 13,011 11,965 862,301 1,119,761 1,055,548 1,167,627 1,078,638 Net investment in finance lease: Lease receivable - - 732,728 869,910 677,722 Unearned finance lease income - - 357,441 378,973 345,118 - - 375,287 490,937 332,604 Intangible assets - 3G licence: Acquisition cost 376,000 376,000 376,000 376,000 376,000 Accumulated amortisation 52,772 92,351 131,930 102,246 141,825 323,228 283,649 244,070 273,754 234,175 1,185,529 1,403,410 1,674,905 1,932,318 1,645,417 Deduct: Restricted bank deposits and cash in bank - current 230 16,705 15,305 17,785 14,869 Net investment in finance lease - current - - 15,444 87,767 36,036 Other assets - current 230 16,705 30,749 105,552 50,905 Other assets - non-current 1,185,299 1,386,705 1,644,156 1,826,766 1,594,512 Net investment in finance lease are receivables related to the lease of fiber optics cables to PT Hutchison CP Telecommunications HCPT and PT Mora Telematika Indonesia Moratel refer to Note 31l. The transactions resulted in gain of Rp 448,475 and Rp 465,047 for three-month period ended 31 March 2009 and the year ended 2009. Details of the net investment in finance lease according to the maturity schedule are as follows: 31122007 31122008 31122009 31032009 31032010 Not later than 1 year - - 64,737 136,886 84,698 Between 1 year and 5 years - - 253,762 273,772 249,870 More than 5 years - - 414,229 459,252 343,154 - - 732,728 869,910 677,722 Unearned finance lease income - - 357,441 378,973 345,118 Net investment in finance lease - - 375,287 490,937 332,604 As at 31 March 2010, management believes that there was no indication of impairment for intangible assets. Refer to Note 26 for related party information. As restated, refer to Note 3