PT Patra Telekomunikasi Indonesia “Patrakom”

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 46

11. LONG-TERM INVESTMENTS

continued

e. PT Batam Bintan Telekomunikasi “BBT”

BBT is engaged in providing fixed line telecommunication services at Batamindo Industrial Park in Muka Kuning, Batam Island and at Bintan Beach International Resort and Bintan Industrial Estate in Bintan Island.

f. PT Pembangunan Telekomunikasi Indonesia “Bangtelindo”

Bangtelindo is primarily engaged in providing consultancy services on the installation and maintenance of telecommunications facilities.

g. PT Mandara Selular Indonesia “Mobisel”

Mobisel is engaged in providing mobile cellular services and related facilities. These services were previously provided by the Company under a revenue-sharing arrangement with PT Rajasa Hazanah Perkasa “RHP”. The capital contribution made by the Company of Rp10,398 million represented a 25 equity ownership in Mobisel. As of December 31, 2002, the value of investment has been reduced to zero because the Company’s share of loss exceeded the carrying amount of investment in Mobisel. In July 2003 and January 2004, Mobisel carried out a series of debt to equity conversions resulting in dilution of the Company’s ownership interest to 6.4. On December 20, 2004, Mobisel’s stockholders agreed to issue 306,000,000 new Series B shares to a new stockholder and an existing stockholder. The issuance of 306,000,000 new Series B shares resulted in dilution of the Company’s interest in Mobisel to 3.63. On May 27, 2005, the Company’s ownership interest was further diluted to 1.33 following the issuance of 1,179,418,253 new Series B shares by Mobisel. On January 13, 2006, the Company sold its entire ownership interest in Mobisel to Twinwood Ventures Limited third party for Rp22,561 million Note 53. The resulting gain on the sale was not significant to the consolidated statement of income.

h. Medianusa Pte. Ltd.

Medianusa Pte. Ltd. is an associated company of Infomedia, which is engaged as a sales agent, in search of advertisers for telephone directories. On November 30, 2004, Infomedia sold its entire ownership in Medianusa Pte. Ltd. for SGD0.024 million Rp135 million. The results of operations of Medianusa Pte. Ltd. and the gain on this sale was not significant to the Company’s consolidated statement of income.