GENERAL continued a. Establishment and General Information continued

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 11

1. GENERAL continued a. Establishment and General Information continued

Under Law No. 361999, activities that result in monopolistic practices and unfair competition are prohibited. In connection with this law, Government Regulation No. 522000 was issued, which provides that interconnection fees shall be charged to originating telecommunications network operators where telecommunications service is provided by two or more telecommunications network operators. Based on press release No. 05HMSJPVIII2000 dated August 1, 2000 from the Director General of Post and Telecommunications and the correction thereto No. 1718UMVIII2000 dated August 2, 2000, the period of exclusive rights granted to the Company to provide local and domestic long- distance fixed-line telecommunications services, which initially would expire in December 2010 and December 2005, respectively, was shortened to expire in August 2002 and August 2003, respectively. In return, the Government is required to pay compensation to the Company Note 29. Based on a press release from the Coordinating Minister of Economics dated July 31, 2002, the Government decided to terminate the Companys exclusive rights as a network provider for local and long-distance services with effect from August 1, 2002. On August 1, 2002, PT Indonesian Satellite Corporation Tbk “Indosat” was granted a license to provide local and long-distance telecommunications services. On May 13, 2004, pursuant to the Ministry of Communications Decree No. KP. 1622004, the Company was granted a commercial license to provide International Direct Dialing IDD services. Based on the resolution of the Extraordinary General Meeting of Stockholders, the minutes of which have been notarized by deed No. 4 dated March 10, 2004 of A. Partomuan Pohan, S.H., LLM., the composition of the Companys Board of Commissioners and Board of Directors as of December 31, 2004 was as follows: President Commissioner : Tanri Abeng Commissioner : Anggito Abimanyu Commissioner : Gatot Trihargo Independent Commissioner : Arif Arryman Independent Commissioner : Petrus Sartono President Director : Kristiono Director of Finance : Rinaldi Firmansyah Director of Telecommunications Service Business : Suryatin Setiawan Director of Human Resources and Support Business : Woeryanto Soeradji Director of Telecommunications Network Business : Abdul Haris PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 12

1. GENERAL continued a. Establishment and General Information continued