Investments in associated companies

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 20

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued k. Intangible assets continued

Intangible assets are depreciated using the straight-line method, based on the estimated useful lives of the assets as follows: Years Licenses 10 Other intangible assets 2-10 l. Property, plant and equipment - direct acquisitions Property, plant and equipment directly acquired are stated at cost, less accumulated depreciation and impairment losses. The cost of the assets include: a purchase price, b any costs directly attributable to bringing the asset to its location and condition and c the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item shall be depreciated separately. Property, plant and equipment, except land, are depreciated using the straight-line method, based on the estimated useful lives of the assets as follows: Years Buildings 20-40 Leasehold improvements 3-7 Switching equipment 5-15 Telegraph, telex and data communication equipment 5-15 Transmission installation and equipment 5-25 Satellite, earth station and equipment 3-20 Cable network 5-25 Power supply 3-10 Data processing equipment 3-10 Other telecommunications peripherals 5 Office equipment 2-5 Vehicles Customer Premise Equipment “CPE” 5-8 10 Other equipment 5 Depreciation or amortization method, useful lives and residual value of an asset should be reviewed at least at each financial year-end and adjusted if appropriate. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 21

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued l.