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Table of Content On February 5, 2008, the ITRA required that we and other operators begin implementing the cost-based interconnection tariff
regime. On April 11, 2008, pursuant to Directorate General of Post and Telecommunication “DGPT” Decree No.2052008, the ITRA and the MoCI approved RIO proposals from all operators to replace previous interconnection agreements. The RIO
approved in 2008 was effective until July 29, 2011 when new interconnection charges were implemented as stipulated in ITRA Letter No.227BRTIXII2010 dated December 31, 2010 regarding the Implementation of Interconnection Charges in 2011. This
is the result of interconnection charges recalculation conducted in 2010 by MoCI that was agreed on by all operators and outlined in a Memorandum of Understanding. The results of this interconnection charges reform caused a slight decrease in
interconnection costs. On December 12, 2011, the ITRA changed the SMS interconnection fee basis from a “Sender Keep All” basis to a cost basis
interconnection fee calculation which required certain amendments to RIOs agreed upon in 2011. MoCI Regulation No.82006 stipulates that the RIO of telecommunications network operators generating operating revenue that is equal to or more than 25
of the combined revenues of all telecommunication operators that serve the same respective segment, must obtain ITRA’s approval, necessitating changes in our and Telkomsel’s RIOs which were approved on June 20, 2012. Until this report is
published, no recalculation of interconnection fees for 2012 had been done as doing such should have been preceded by an evaluation on interconnection charges in 2011.
10. VoIP
In January 2007, the Government implemented new interconnection regulations and a five-digit access code system for VoIP services pursuant to MoCI Decree No.06PM.KOMINFO52005. Under the Decree, the prefix for VoIP, which was originally
01X, was changed to 010XY. On April 27, 2011, the MoCI issued Regulation No.14PERM.KOMINFO042011, as partly revoked by MoCI Regulation No. 11 of 2014, which imposed quality control standards in relation to VoIP services, which
became effective three months thereafter, to which we and other operators must adhere the regulation.
11. IPTV
Several provisions in the MoCI Regulation No.11PERM.KOMINFO072010 “MoCI Regulation No.112010” regarding the Implementation of Internet Protocol Television IPTV Service has been amended by Regulation No.152014 regarding the
Implementation of Internet Protocol Television IPTV Service that became the legal basis for the IPTV licensing and regulates the provision of IPTV services, including the rights and obligations of IPTV providers, technical standards, foreign ownership
requirements and the use of domestic independent content providers. MoCI Regulation No.112010 recognizes IPTV as a convergence of telecommunications, broadcasting, multimedia and electronic
transactions and provides that only a consortium comprising at least two Indonesian entities may be licensed as an IPTV provider. Berdasarkan Peraturan Menkominfo No.15 Tahun 2014, izin yang kami perlukan antara lain: a Izin Penyelenggaraan Jaringan
Tetap Lokal, Jaringan Bergerak Seluler atau Izin Jaringan Tetap Tertutup; b Izin Penyelenggaraan Jasa Akses Internet ISP; dan c Izin Penyelenggaraan Penyiaran Lembaga Penyiaran Berlangganan Jasa Penyiaran Televisi. Each consortium must together
hold licenses as a local fixed network provider, internet services provider and one broadcast services provider. Hal ini sejalan dengan dihapusnya ketentuan mengenai Izin Penyelenggaraan Penyiaran Lembaga Penyiaran Berlangganan melalui kabel,
menjadi Izin Penyelenggaraan Penyiaran Lembaga Penyiaran Berlangganan Jasa Penyiaran Televisi. Dalam Peraturan Pemerintah No.52 Tahun 2005 tentang Penyelenggaraan Penyiaran Lembaga Penyiaran Berlangganan “LPB”
menyebutkan bahwa penyiaran dapat diselenggarakan melalui satelit, kabel dan terestrial. Penyiaran melalui satelit dapat menjangkau secara nasional, sedangkan kabel dan terestrial memiliki jangkauan wilayah tertentu. Izin LPB Penyiaran melalui
satelit yang dimiliki PT Indonusa Telkomvision menjadi dasar hokum Telkom memberlakukan layanan IPTV secara nasional.
12. Satellite
Our international satellite business is highly regulated. In addition to being subject to domestic licensing requirements and regulation for the use of orbital slots and radio frequencies, our satellite operations also been the subject of Radio
Communications Agency of the International Telecommunication Union. Furthermore, MoCI Regulation No.372006 dated December 6, 2006 requires foreign satellite operators to obtain a landing right
license to operate in Indonesia which requires i foreign satellite operators to coordinate with domestic satellite operators, including us, to ensure that no Indonesian satellite and terrestrial systems will be disrupted by their operation,and ii the country
of origin of the foreign satellite operators must also give permission to the Indonesian satellite operators to operate in that country.
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13. Consumer Protection
Under the Telecommunications Law, each network provider is required to protect consumer rights in relation to, among others, quality of services, tariffs and compensation. Customers injured or damaged by negligent operations may file claims against
negligent providers. Telecommunications consumer protection regulations provide service standards for telecommunication
operators. 14. USO
All telecommunications operators, whether network or service providers, are bound by a USO regulation that requires them to contribute to providing telecommunication facilities and infrastructure in the interest of opening 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
