TREASURY STOCK continued OTHER EQUITY RESERVES June 30,

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 70

22. REVENUES continued

The details of net revenues received by the Group from agency relationships as of June 30, 2016 and 2015 are as follows: 2016 2015 Gross revenues 7,411 6,599 Compensation to value added service providers - 287 Net revenues 7,411 6,312 Refer to Note 32 for details of related party transactions.

23. PERSONNEL EXPENSES

The breakdown of personnel expenses is as follows: 2016 2015 Salaries and related benefits 2,684 1,941 Vacation pay, incentives and other benefits 1,542 1,611 Employees’ income tax 944 815 Net periodic pension costs Note 30 619 270 Early retirement program 200 844 Housing 104 109 Net periodic post-retirement health care benefit costs Note 30 91 122 LSA expenses Note 31 53 44 Other employee benefits Note 30 23 25 Other post-retirement benefit costs Note 30 24 23 Others 121 78 Total 6,405 5.882 Refer to Note 32 for details of related party transactions.

24. OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES

The breakdown of operation, maintanance and telecommunication service expenses is as follows: 2016 2015 Operations and maintenance 9,535 7,400 Radio frequency usage charges Notes 35c.i and 35c.ii 1,939 1,742 Concession fees and Universal Service Obligation charges 1,100 1,034 Cost of IT services 780 489 Leased lines and CPE 739 708 Cost of handset sold Note 6 735 762 Electricity, gas and water 463 468 Cost of SIM cards and vouchers Note 6 280 222 Tower rent 202 620 Vehicles rental and supporting facilities 136 164 Insurance 120 200 Project management 103 83 Others each below Rp75 billion 42 220 Total 16,174 14,112 Refer to Note 32 for details of related party transactions. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 71

25. GENERAL AND ADMINISTRATIVE EXPENSES

The breakdown of general and administrative expenses is as follows: 2016 2015 General expenses 740 684 Professional fees 290 165 Training, education and recruitment 190 187 Travelling 185 159 Provision for impairment of receivables Note 5d 149 471 Others each below Rp75 billion 384 358 Total 1,938 2.024 Refer to Note 32 for details of related party transactions. 26. INTERCONNECTION EXPENSES The breakdown of interconnection expenses is as follows: 2016 2015 Domestic interconnection and access 1,001 1,316 International interconnection 412 636 Total 1,413 1,952 Refer to Note 32 for details of related party transactions.

27. TAXATION

a. Claims for tax refund June 30, December 31, 2016 2015 The Company Value added tax “VAT” 298 298 Corporate income tax 412 479 Subsidiaries Corporate income tax 88 290 Value tax added “VAT” 128 12 Income tax Article 23 - Withholding tax on service delivery Total claims for tax refund 926 1,079 Short-term portion 89 66 Long-term portion 837 1,013