PROPERTY, PLANT AND EQUIPMENT UNDER RSA 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 47

14. GOODWILL AND OTHER INTANGIBLE ASSETS continued

Other intangible Goodwill assets License Total Gross carrying amount: Balance, December 31, 2007 106,348 7,602,847 436,000 8,145,195 Additions - Sigma 37,924 256,354 - 294,278 Additions - Sigma’s software - - 15,030 15,030 Additions - Indonusa 6,599 - - 6,599 Balance, September 30, 2008 150,871 7,859,201 451,030 8,461,102 Accumulated amortization: Balance, December 31, 2007 106,348 4,593,326 58,393 4,758,067 Amortization expense for 9 months period Note 37 25,468 752,560 35,036 813,064 Balance, September 30, 2008 131,816 5,345,886 93,429 5,571,131 Net Book Value 19,055 2,513,315 357,601 2,889,971 Weighted-average amortization period 5 years 7.58 years 9.50 years ii Other intangible assets resulted from the acquisitions of Dayamitra, Pramindo, TII, KSO IV and KSO VII, and represented the rights to operate the business in the KSO areas. Goodwill resulted from the acquisition of GSD in 2001, Sigma in 2008 Note 4, and Indonusa in 2008 Notes 1d.b and c. Software license resulted from the acquisition of Sigma in 2008. iii In 2006, Telkomsel was granted the right to operate the 3G license. Telkomsel is required to pay an up-front fee and annual BHP fee for the next ten years. The up-front fee is recorded as intangible asset and amortized using the straight-line method over the term of the right to operate the 3G license 10 years which is extendable subject to evaluation. Amortization commenced in 2006 when the assets attributable to the provision of the related services became available for use. The up-front fee paid by Telkomsel in February 2006 for the 3G license amounting to Rp.436,000 million was recognized as intangible asset and is amortized over the term of the 3G license. Based on Telkomsel’s management interpretation of the license conditions and written confirmation from the DGPT, the 3G license may be returned at any time without any financial obligation to pay the remaining outstanding annual BHP fees. Accordingly, the annual BHP fees relating to 3G license are expensed when incurred. Telkomsel’s management assesses its plan to continue to use the license on an annual basis. iv The estimated annual amortization expense relating to other intangible assets for each of the next three years beginning from October 1, 2008 would be approximately Rp.1,059,856 million per year. 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.