Use of estimates SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Treasury Stock

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010 SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated 33

4. ACQUISITIONS OF SIGMA AND AD MEDIKA continued a. Acquisitions of Sigma continued

Metra acquired control of Sigma on February 22, 2008 and the valuation was performed by an independent appraisal using the balance as of February 28, 2008, being the nearest convenient balance sheet date. The Company’s consolidated results of operations have included the operating results of Sigma since March 1, 2008. The intangible assets represent long-term customer contracts and relationships, software and trademark Note 14.

b. Acquisition of Ad Medika

On January 25, 2010, Metra entered into a CSPA with Ad Medika’s stockholders to purchase 75 of Ad Medika’s outstanding shares. Subsequently, on February 25, 2010, Metra entered into SPA with Ad Medika’s stockholders for the share purchase transaction amounting to Rp.128,250 million. Ad Medika is an electronic health care network company. Ad Medika is the largest health service administration management in Indonesia. Through the acquisition, the Company started to actualize Insure Net as a National e-Heath initial program. The acquisition of Ad Medika has been accounted for using the purchase method of accounting, where the purchase price was allocated to fair value of the acquired assets and assumed liabilities. The temporary allocation of the acquisition cost was as follows: Rp. The assets and liabilities arising from the acquisition are as follows: Current assets 26,403 Property, plant and equipments 17,110 Intangible assets 28,693 Other non-current assets 3,268 Current liabilities 22,057 Long-term liabilities 8,143 Deferred tax liabilities 7,173 Minority interests 4,145 Fair value of net assets acquired 33,956 Goodwill 96,121 Total purchase consideration 130,077 Less: Cash and cash equivalents in subsidiary acquired 13,574 Payable to Ad Medika’s selling stockholders 3,000 Cash outflow from acquisition 113,503 Metra acquired control of Ad Medika on February 25, 2010 and the valuation was performed by an independent appraisal using the balance as of February 28, 2010, being the nearest convenient balance sheet date. The Company’s consolidated results of operations have included the operating results of Ad Medika since March 1, 2010. The intangible assets represent long- term customer contracts and relationships, software and trademark Note 14.