Basic earnings per share and earnings per ADS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended Figures in tables are expressed in billions of rupiah, unless otherwise stated 52

11. PROPERTY AND EQUIPMENT continued

c. Others continued iii On August 7, 2012, Telkom-3 Satellite with a total value of Rp1,606 billion was built and launched, but failed to reach its orbit. The carrying value of the satellite was charged to other expenses in the 2012 consolidated statement of comprehensive income. Telkom-3 Satellite was insured with insurance coverage that was adequate to cover losses from the insured risks such as the event experienced by the Company. Insurance claim was made and the amount of insurance compensation amounting to Rp1,772 billion was agreed and approved by the insurer and recorded as part of other income in the 2012 consolidated statement of comprehensive income. In November 2012, the Company received the proceeds from the insurance claim. iv In 2012, Telkomsel decided to replace certain equipment units with net carrying amount of Rp1,037 billion, as part of a modernization program. Accordingly, Telkomsel changed the estimated useful lives of such equipment. In 2013, the effect of additional depreciation expense amounted to Rp131 billion. The impact of the change in the estimated useful lives of the equipment for the year ended December 31, 2014 is to decrease the profit before income tax by Rp84 billion. v In 2012, the useful lives of Telkomsel’s towers were changed from 10 years to 20 years to reflect their current economic lives. The impact is a reduction of depreciation expense by Rp606 billion recognized in the 2013 consolidated statement of comprehensive income. The impact of the change in the estimated useful lives of the towers in future periods is to increase the profit before income tax as follows: Years Amount 2014 565 2015 469 2016 301 2017 92 vi Exchange of property and equipment • In 2011, the Company and PT Industri Telekomunikasi Indonesia “INTI” signed Purchase Orders of Procurement and Installation Agreement for the Modernization of the Copper Cable Network through Optimization of Asset Copper Cable Network with Trade InTrade Off with total procurement value amounting to Rp1,499 billion up to December 31, 2013. In 2013 and 2012, the Company derecognized the copper cable network asset with net carrying value of Rp1.6 billion and Rp6.2 billion, respectively, and recorded the fiber optic network asset from the exchange transaction of Rp203 billion and Rp430 billion, respectively. • In 2013, certain equipment units of Telkomsel with net carrying amount of Rp268 billion were exchanged with equipment from NSN Oy and PT Huawei. As of December 31, 2013, Telkomsel’s equipment with net carrying amount of Rp105 billion are going to be exchanged with equipment from NSN Oy and PT Huawei; therefore, Telkomsel’s equipment units were reclassified as assets held for sale Note 9.