GENERAL AND ADMINISTRATIVE EXPENSES 2007 TAXATION continued

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 74

38. TAXATION continued

e. continued The reconciliation between the consolidated income before tax and taxable income attributable to the Company and the consolidated income tax expense are as follows: 2007 2008 Consolidated income before tax 19,159,050 16,937,902 Add back consolidation eliminations 6,383,151 6,019,451 Consolidated income before tax and eliminations 25,542,201 22,957,353 Less: income before tax of the subsidiaries 14,046,427 12,681,216 Income before tax attributable to the Company 11,495,774 10,276,137 Less: income subject to final tax 464,792 520,951 11,030,982 9,755,186 Tax calculated at progressive rates 3,309,277 2,926,538 Non-taxable income 1,917,021 1,806,578 Non-deductible expenses 273,834 330,884 Deferred tax assets originating from previously unrecognized temporary differences - net 47,807 10,029 Effect on the Company’s deferred tax liabilities of reduction in tax rate - net - 167,079 Corporate income tax expense 1,618,283 1,293,794 Final income tax expense 58,436 62,457 Total income tax expense of the Company 1,676,719 1,356,251 Income tax expense of the subsidiaries 4,245,000 3,887,048 Effect on subsidiaries’ deferred tax liabilities of reduction in tax rate - net - 421,379 Total consolidated income tax expense 5,921,719 4,821,920 PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 75

38. TAXATION continued

e. continued The reconciliation between income before tax attributable to the Company and the estimated taxable income for the nine months period ended September 30, 2007 and 2008, are as follows: 2007 2008 Income before tax attributable to the Company 11,495,774 10,276,137 Less: income subject to final tax 464,792 520,951 11,030,982 9,755,186 Temporary differences: Amortization of intangible assets 758,962 752,380 Depreciation of property, plant and equipment 204,095 315,463 Allowance for doubtful accounts 149,304 361,521 Accrued employees’ benefits 389,694 288,081 Depreciation of property, plant and equipment under RSA 89,923 81,507 Capital leases 24,167 1,477 Allowance for inventory obsolescence 7,358 7,668 Amortization of land rights 3,212 2,827 Gain on sale of property, plant and equipment 9,386 7,282 Amortization of unearned income RSA 177,035 143,306 Trade receivables written-off 115,634 247,796 Net periodic pension costs and other-post retirement benefits costs 224,252 260,345 LSA 425,143 - Payments of deferred consideration for business combinations 667,982 661,956 Accrued early retirement benefits 1,528,429 - Foreign exchange gain loss on deferred consideration for business combinations 28,147 32,089 Other provisions 4,681 16,508 Total temporary differences 1,552,438 143,128 PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 76

38. TAXATION continued