Digital Enterprise Product Portfolio

122 PT Telkom Indonesia Persero Tbk Media and Edutainment Business

6. Digital Consumer

Our digital consumer business portfolio comprises primarily media and edutainment services offered to consumers such as e-commerce services, videoTV services pay TV, IPTV and over the top OTT TV, and digital mobile services game, music and mobile digital life services. OVERVIEW OF TELECOMMUNICATION RATES Under Law No.36 Year 1999 and Government Regulation No.52 Year 2000, tarifs for operating telecommunications network andor services are determined by providers based on the tarif type, structure and with respect to the price cap formula set by the Government.

a. Fixed line telephone tarifs

The Government has issued a new adjustment tarif formula which is stipulated in the Decree No.15 PERM.KOMINFO42008 dated April 30, 2008 of the Ministry of Communication and Information “MoCI” concerning “Mechanism to Determine Tarif of Basic Telephony Services Connected through Fixed Line Network”. Under the Decree, tarif structure for basic telephony services connected through ixed line network consists of the following: - Activation fee - Monthly subscription charges - Usage charges - Additional facilities fee

b. Mobile cellular telephone tarifs

On April 7, 2008, the MoCI issued Decree No.09 PERM.KOMINFO042008 regarding “Mechanism to Determine Tarif of Telecommunication Services Connected through Mobile Cellular Network” which provides guidelines to determine cellular tarifs with a formula consisting of network element cost and retail services activity cost. This Decree replaced the previous Decree No.12PERM.KOMINFO022006. Under MoCI Decree No.09PERM.KOMINFO042008 dated April 7, 2008, the cellular tarifs of operating telecommunication services connected through mobile cellular network consist of the following: − Basic telephony services tarif, − Roaming tarif, andor − Multimedia services tarif, with the following traic structure: − Activation fee − Monthly subscription charges − Usage charges − Additional facilities fee

c. interconnection tarifs

The Indonesian Telecommunication Regulatory Body “ITRB”, in its letter No.262BRTIXII2011 dated December 12, 2011, decided to change the basis for SMS interconnection tarif to cost basis with a maximum tarif of Rp23 per SMS efective from June 1, 2012, for all telecommunication provider operators. Based on letter No.118KOMINFODJPPI PI.02.04012014 dated January 30, 2014 of the Director General of Post and Informatics, the Director General of Post and Informatics decided to implement new interconnection tarif efective from February 1, 2014 until December 31, 2016, subject to evaluation on an annual basis. Pursuant to the Director General of Post and Informatics letter, the Company and Telkomsel are required to submit the Reference Interconnection Ofer “RIO” proposal to ITRB to be evaluated. Subsequently, ITRB in its letters No.60BRTIIII2014 dated March 10, 2014 and No.125BRTIIV2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of RIO regarding the interconnection tarif. Based on the letter, ITRB also approved the changes to the SMS interconnection tarif to Rp24 per SMS.

d. network lease tarifs

Through MoCI Decree No.03PERM.KOMINFO12007 dated January 26, 2007 concerning “Network Lease”, the Government regulated the form, type, tarif structure, and tarif formula for services of network lease. Pursuant to the MoCI Decree, the Director General of Post and Telecommunication issued its Letter No. 115 Year 2008 dated March 24, 2008 which stated “The Agreement on Network Lease Service Type Document, Network Lease Service Tarif, Available Capacity of Network Lease Service, Quality of Network Lease Service, and Provision Procedure of Network Lease Service in 2008 Owned by Dominant Network Lease Service Provider”, in conformity with the Company’s proposal.

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PT Telkom Indonesia Persero Tbk

e. Tarif for other services

The tarifs for satellite lease, telephony services, and other multimedia are determined by the service provider by taking into account the expenditures and market price. The Government only determines the tarif formula for basic telephony services. There is no stipulation for the tarif of other services. proMotional StrategieS Our irst strategy with respect to promotion is personalized socializing. This strategy involves the use of social media as part of a conventional campaign with the aim of increasing customer engagement through a more customized approach. Our second promotional strategy is social personalizing where we seek to get the beneits of a mass media campaign to have a wide reach and increase the awareness of our products and brands among potential customers, while still maintaining high engagement and participation. Promotion strategy in the corporate segment enterprise business service implemented by using Telkom Solution as an umbrella brand for the micro, small, medium enterprise segment “MSME”. Our strategy to implement the strategy paradox marketing as an approach in the enterprise market and MSME which has the characteristics of high competition and high demanding customers. Telkom using strategic account management for corporate customers through competent account managers. Account managers as a customer advocacy assigned to maintain the relationship as well as a partner for customers to promote and communicate the appropriate solution for the customers. While for MSME, we optimize the omni channel by optimizing social media and big data analysis for products and solutions promotion. Telkom using the approach through the MSME communities which managed through www.smartbisnis.com. DiStribUtion CHannelS The following are the primary distribution marketing channels for our products and services:

1. plasa telkom and grapari

Outlets that function as walk-in customer service points, where customers have access to the full range of Telkom and Telkomsel’s respective products and services, including billing, payment, subscription cancellation and promotion to complaint handling. As of December 31, 2015, we managed 572 Plasa Telkom outlets and 414 GraPARI outlets in Indonesia and two GraPARI in Hong Kong and Singapore, and had an additional 327 GraPARI outlets which were managed by third party business partners. Several of the GraPARI outlets operate on a 24 hour basis. We also operate 392 mobile GraPARI outlets which are sales points located in vehicles which can travel to reach customers across the country.

2. Contact centers

Contact centers that support our customers’ ability to access certain of our products and services, including make billing enquiries, submit complaints, and access certain promotions and service features. We operate 24-hours contact center facilities in ive cities, namely Medan, Jakarta, Bandung, Makassar and Surabaya. In 2015, inbound calls to our contact centers have generally been decreasing due to changes in methods used by the customers in seeking out product information, subscribing or submitting complaints, from voice calls to online requests on our websites.

3. partnership Stores

Partnership stores are extensions of our distribution channels, in cooperation with a variety of third party marketing outlets such as computer or electronic stores, banks, and others.