ADVANCES AND OTHER NON-CURRENT ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS

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 48

15. ESCROW ACCOUNTS

Escrow accounts as of September 30, 2007 and 2008 consist of the following: 2007 2008 Bank Mandiri - 42,572 Bank Danamon 1,172 1,181 Others each below Rp.1 billion 226 108 1,398 43,861 The escrow accounts with Bank Mandiri were established in relation with the Palapa Ring Consortium Construction and Maintenance Agreement “CMA” as an initial deposit 5 of the commitment value Note 49c.iv. The escrow accounts with Bank Danamon were established in relation with the RSA in telecommunications equipment in Divre VII East Indonesia. Refer to Note 44 for details of related party transactions.

16. TRADE PAYABLES 2007

2008 Related parties Concession fees 1,245,971 1,207,726 Purchases of equipment, materials and services 241,669 229,842 Payables to other telecommunications providers 133,449 78,542 Sub-total 1,621,089 1,516,110 Third parties Purchases of equipment, materials and services 4,131,557 7,260,856 Payables related to RSA 144,798 97,312 Payables to other telecommunications providers 27,129 87,627 Sub-total 4,303,484 7,445,795 Total 5,924,573 8,961,905 Trade payables by currency are as follows: 2007 2008 Rupiah 2,946,424 3,322,331 U.S. Dollars 1,787,661 3,435,105 Euro 1,188,029 2,195,718 Singapore Dollars 2,358 8,660 Japanese Yen - 46 Great Britain Pound sterling 101 - Others - 45 Total 5,924,573 8,961,905 Refer to Note 44 for details of related party transactions. 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 49

17. ACCRUED EXPENSES 2007

2008 Operations, maintenance and telecommunications services 1,029,348 1,300,760 Salaries and benefits 965,078 769,754 General, administrative and marketing 528,371 552,780 Interest and bank charges 130,947 251,431 Total 2,653,744 2,874,725 18. UNEARNED INCOME 2007 2008 Prepaid pulse reload vouchers 2,326,959 3,036,452 Other telecommunications services 3,962 28,614 Others 67,948 70,502 Total 2,398,869 3,135,568 19. SHORT-TERM BANK LOANS 2007 2008 Bank Niaga 29,002 35,000 Bank Syariah Mega 13,150 18,449 BNI 500,000 - BCA 200,000 - Bank Mandiri 200,000 - Bank Bumiputera 8,000 - Total 950,152 53,449 a. Bank Niaga On April 25, 2005, Balebat entered into a Rp.800 million, 12 per annum fixed rate revolving credit facility and Rp.1,600 million investment credit facility agreement with Bank Niaga. These credit facilities are secured by Balebat’s property located in West Java up to a maximum of Rp.3,350 million Note 11. The applicable fixed interest rate and maturity date of the revolving credit facility was amended on July 26, 2005 from 12 per annum to 12.5 per annum and May 30, 2006, respectively and subsequently on June 13, 2006 to 16.5 per annum and May 30, 2007, respectively. Based on the latest amendment, the revolving credit facility amounting to Rp.800 million was combined with the short-term fixed credit facility of Rp.4,000 million Note 23h. Additionally, Balebat obtained a credit facility of Rp.500 million with a fixed interest rate of 16.75 per annum, maturing on May 30, 2007. On May 23, 2007, the loan agreement was amended 4 th amendment agreement to increase the maximum facility amount and interest rate to Rp.15,000 million and 13 per annum respectively, for the period up to May 29, 2008. On April 29, 2008, the loan agreement was amended to change the maturity period to May 29, 2009. As of September 30, 2007 and 2008, the principal outstanding amounted to Rp.14,002 million and Rp.15,000 million, respectively.