Investing in Information Technology “IT” services

1. telecommunications Business portfolio

The Telkom Group’s telecommunications business portfolio comprises Plain Ordinary Telephone System “POTS” which covers both local and long distance calls, ixed wireless connections consisting of voice, SMS and data network package “DNP”, cellular voice and SMS services, international direct dialing “IDD”, broadband services mobile and ixed, and network and tower services.

a. Fixed Wireline Services

Our ixed wireline services include POTS, VAS ixed wireline, intelligent network “IN” services and session initiation protocol “SIP” services. After experiencing a decline, in 2011, we successfully improved the performance of this business by launching a number of new programs, such as “Telkom Poin Rejeki Tumpah” reward points and the ixed business improvement program “FBIP”. We serve 8.6 million customers, representing a market share of 99.0 of the total ixed wireline market penetration in Indonesia of 4.0 as of December 31, 2011.

b. Broadband and Internet Services

These services are ofered through a range of product lines, including TelkomNet instan, FlexiNet, wholesale port, Metro I-net, Astinet, broadband internet under the Speedy and Flash brand names, WiFi hotspots and IP transit. TelkomNet Instan is a premium postpaid internet access service that is accessible in all cities in Indonesia. In 2011 there were 40.2 thousand TelkomNet Instant customers, a decrease of 60.9 from the previous year as these were largely new internet customers who are expected to migrate to our Telkom Speedy broadband service. Our broadband internet access is provided through our existing copper cables using ADSL technology. Telkom’s substantial presence in the broadband market in Indonesia is indicated by our 12.9 million customers. Data, internet and IT services contributed 33.6 to our total revenue as of December 31, 2011. In 2011 we launched our Flexi Hotspot service that delivers high speed internet access through a wireless internet connection, supported by our Telkom Hotspot infrastructure. Subscribers can access this service, which is available in Hotspot areas, using any device equipped with a WiFi connection simply by entering their FlexiNet Unlimited or Flexi Mobile Broadband username and password. We ofer low-cost international calls through our premium VoIP service, “Telkom Global-01017”, while standard international calls are available through “Telkom Save”. Both services are accessed by dialing a special access preix. We cooperate with eight global carriers, all of which are wholesalers that allow us access to their international networks. Of these eight carriers, four are for outgoing calls, one is for incoming calls and three are for both outgoing and incoming calls. In 2011, a total of 358.6 million minutes of outgoing calls using TelkomSave and Telkom Global-01017 and incoming VoIP calls from our global partners were used. This represents an increase of 47.4 million minutes, or 15.2 in VoIP calls compared to 2010. The table below shows information about our VoIP services: Item TelkomGlobal-01017 TelkomSave Dial One Stage Two Stages Quality Technology Premium VoIP Standard VoIP

c. Cellular Services

In 2011, Telkomsel introduced a number of marketing programs that focused on new features in our cellular services. These programs strengthened our position in Indonesia’s cellular telecommunications industry, with Telkomsel’s customer base growing from 94.0 million subscribers at the end of 2010 to 107.0 million subscribers at the end of 2011, an increase of 13.8 or 13.0 million subscribers. Telkomsel’s new features in 2011 were as follows: PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications