Telecommunications Regulators AR TELKOM 2014 ENG

equal access to telecommunications throughout all regions in Indonesia, which is generally done by way of financial contribution. MoCI Regulation No.32PERM. KOMINFO102008 dated October 1, 2008 regarding the USO as amended by MoCI Regulation No.03PERM. KOMINFO022010 dated February 1, 2010 “MoCI Regulation No.322008” provides that USO funds received will be used to fund telephone, SMS and internet access in remote and other areas of Indonesia that have been classified as USO regions where it is not economical to provide these services. USO payment requirements are calculated as a percentage of our unconsolidated gross revenues less uncollectable receivables from the telecommunication operation e.g., bad debt expense and payments received for interconnection expense which belong to other parties. Pursuant to Government Regulation No.72009 dated January 16, 2009 regarding Tariffs for Non-Tax State Revenue that apply to the Ministry of Communication and Information “GR No.72009”, the current USO tariff rate is 1.25 of gross revenue.

15. 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 effect 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, from which 148 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S uncollectible receivables from telecommunication operation e.g., bad debt expense interconnection payable, andor connections utilized by other parties may be deducted. 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.

16. 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 Affairs 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”. The Joint Decree regulates that license for telecommunication tower construction is to be issued by regents or mayors, and for Jakarta Province, its Governor. The Joint Decree also provides for tower construction standards and requires that telecommunications towers be made generally available for shared use by telecommunications service providers. The owner of a telecommunications tower is allowed to collect a fee, which is negotiated with reference to costs associated with investment and operational costs, the return of investment and a profit. Monopolistic practices in the ownership and management of telecommunications towers is prohibited. 149 2014 Annual Report PT Telkom Indonesia Tbk Persero