VoIP IPTV AR TELKOM 2015 ENG.

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PT Telkom Indonesia Persero Tbk Each consortium must must together hold licenses as a local ixed network provider, internet services provider and one broadcast service provider. This was in line with the removal of the provisions concerning Provider License the Broadcasting Implementation of Broadcasting Subscription Institute via cable, become the Broadcasting Implementation of Broadcasting Subscription Institute of Television Broadcasting. In the Government Regulation No.522005 regarding the Broadcasting Implementation of Broadcasting Subscription Institute “LPB” mentioned that the broadcasting could be conducted via satellite, cable and terrestrial. Broadcasting via satellite could reach nationwide, while cable and terrestrial have a range of a particular region. LPB licenses of broadcasting via satellite owned by PT Indonusa Telkomvision became our legal basis became our legal basis to enforce IPTV services nationally.

11. Satellite

Our international satellite business is highly regulated. In addition to being subject to domestic licensing requirements and regulation for the use of orbital slots and radio frequencies, as stipulated in MoCI Regulation, our satellite operations is also regulated by the Radio Communications Bureau of the International Telecommunications Union. Furthermore, MoCI Regulation No.372006 dated December 6, 2006 requires foreign satellite operators to obtain a landing right license to operate in Indonesia which requires such foreign satellite operators to coordinate with domestic satellite operators, including us, to ensure that no Indonesian satellite and terrestrial systems will be disrupted by their operation.

12. Consumer Protection

Under the Telecommunications Law, each network provider is required to protect consumer rights in relation to, among others, quality of services, tarifs and compensation. Customers injured or damaged by negligent operations may ile claims against negligent providers. Telecommunications consumer protection regulations provide service standards for telecommunication operators.

13. USO

All telecommunications operators, whether network or service providers, are bound by an USO regulation that requires them to contribute to providing telecommunication facilities and infrastructure in the interest of opening equal access to telecommunications throughout all regions in Indonesia, which is generally done by way of inancial contribution. MoCI Regulation No.32PERM.KOMINFO102008 dated October 10, 2008 regarding the USO as amended by MoCI Regulation No.03PERM.KOMINFO022010 dated February 1, 2010 “MoCI Regulation No.322008” stipulated, among others, detail services that shall be provided in relation to USO regulation, which is providing telephone, SMS and internet access in remote and other areas of Indonesia that have been classiied as USO regions where it is not economical to provide these services. USO payment requirements are calculated as a percentage 175 PT Telkom Indonesia Persero Tbk of our and Telkomsel’s unconsolidated gross revenues, net of bad debts andor interconnection charges andor connection charges. Pursuant to Decree No.45 year 2012 of the MoCI which was efective from January 22, 2013. The Decree stipulates, among other things, the exclusion of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged, and changes to the payment period which was previously on a quarterly basis to become quarterly or semi-annually.

14. Telecommunication Regulatory Charges

On January 16, 2009, the Government issued Government Regulation No.72009, which sets the types of non- tax state revenues that apply to the MoCI derived from various services, including telecommunications. On December 13, 2010, the Government issued Government Regulation No.762010 amending Government Regulation No.72009. Pursuant to Government Regulation No.762010, we are no longer required to pay right-of-use fees calculated with reference to the BTSs that we deploy in our network, except for BTSs deployed in our backbone, with efect from December 15, 2010. As a result, our right- of-use fees are now calculated based on the bandwidth of the radio frequency spectrum that we use. In addition to radio frequency spectrum right-of- use fees, Government Regulation No.72009 requires all telecommunications operators to pay an annual license fee for telecommunication operation, which is equal to 0.5 of unconsolidated gross revenues, net of bad debts andor interconnection charges andor connection charges. Pursuant to Law No.282009 regarding Local Taxes and Local Fees, local governments are permitted to impose fees on the sites that we use for telecommunications towers. The fees may not exceed 2 of the site’s assessed tax value. Currently, there are some 525 local provincial and regency level governments through out Indonesia that may be authorized to impose these fees to increase in the future.

15. Telecommunications Towers

On March 17, 2008, the MoCI issued MoCI Regulation No.02PERM.KOMINFO32008 regarding Guidelines on Construction and Utilization of Sharing Telecommunication Towers “MoCI Regulation No.022008”. Under MoCI Regulation No.022008, the construction of telecommunications towers requires permits from the relevant governmental institution, while the local government determines the placement and locations at which telecommunications towers may be constructed. In addition, telecommunications providers that own telecommunication towers and other tower owners are obligated to allow other telecommunication operators to utilize their telecommunication towers without any discrimination, with due regards to the technical capacity of the respective tower. Since the operations of telecommunication towers involves a number of relevant Government bodies, on March 30, 2009, a joint regulation is issued in the forms of Minister of Home Afairs Regulation No.182009, Minister of Public Works Regulation No.07PRTM2009, MoCI Regulation No.19PER.M.KOMINFO032009 and Head of the Investment Coordinating Board Regulation No.3P2009 regarding Guidelines for the Construction and Shared Use of Telecommunications Towers “Joint Decree”.