Revenue-Sharing Arrangements RSA SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued j. Intangible assets 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 27 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued q. Revenue and expense recognition continued ii. Cellular and fixed wireless telephone revenues Revenues from postpaid service, which consist of connection fee as well as usage and monthly charges, are recognized as follows: Connection fees for service connection are recognized as revenues at the time the connection occurs. Airtime and charges for value added services are recognized based on usage by subscribers. Monthly subscription charges are recognized as revenues when incurred by subscribers. Revenues from prepaid card subscribers, which consist of the sale of starter packs also known as SIM cards in the case of cellular and RUIM in the case of fixed wireless telephone and start-up load vouchers and pulse reload vouchers, are recognized as follows: Sale of SIM and RUIM cards are recognized as revenue upon delivery of the starter packs to distributors, dealers or directly to customers. Sale of pulse reload vouchers either bundled in starter packs or sold as separate items are recognized initially as unearned income and recognized proportionately as usage revenue based on duration and total of successful calls made and the value added services used by the subscribers or the expiration of the unused stored value of the voucher. Unutilized promotional credits are netted against unearned income. Revenues under Universal Service Obligation “USO“ arrangement are recognized when telecommunication access is ready and the services are rendered. iii. Interconnection revenues With abolition of the rules of interconnection revenue recognition in PSAK 35 notes 2q.viii then revenues from network interconnection with other domestic and international telecommunications carriers are recognized as earned in accordance with contractual agreements. Interconnection revenues consist of revenues derives from other operator’s subscriber call to the Company operator’s customer incoming and calls between subscriber of other operators through the Company’s network transit. iv. Data, internet and information technology services revenues Revenues from installations set-up of internet, data communication and e-Business are recognized upon the completion of installations. Revenues from data communication and internet are recognized based on usage . Revenues from sales, installation and implementation of computer software and hardware, computer data network installation service and installation are recognized when the goods rendered to customers or the installation take place. Revenue from computer software development service is recognized using the percentage of completion method.