6,7 Telin Kingdom Saudi Arabia

115 PT Telkom Indonesia Persero Tbk by Rp399 billion, or 8.6 decrease in local usage. This decrease was partially ofset by the increased in data and internet revenues by Rp287 billion, or 8.0, due to the increased in speedy revenue in line with the customer growth from 3,013 thousand to 3,400 thousand, or 12.8, in 2014. Our home segment expenses increase by Rp75 billion, or 0.8 from Rp8,885 billion in 2013 to Rp8,960 billion in 2014, primarily due to a decreased in other income by Rp511 billion, or 70.6, and a decrease in the diference of fair value investments Rp228 billion, or 98.3. This decreased was ofset by a decreased in operating expense by Rp266 billion, down 2.9, due to a decreased in personnel expense Rp461 billion, or 12.4, due to a decreased in bonus expense by Rp200 billion, or 23.3, and net periodic post-retirement healthcare expense by Rp170 billion, or 80.2. Personal Segment Our personal segment revenues increase by Rp5,300 billion, or 8.6 from Rp61,386 billion in 2013 to Rp66,685 billion in 2014, mainly due to the increased in data and internet revenues by Rp4,270 billion, or 18.3, which increased in Telkomsel cellular data by Rp4,007 billion, or 38.6, parallel with the increase in 67.9 million, or 48.3, the number of subscribers including pay as you use subscribers. Payload data traic increased to 234.862 TB, or 142.9. Rp547 billion, or 4.2, increased in our SMS revenue. Revenue in mobile increased by Rp2,035 billion, or 6.3, due to an increase in cellular monthly subscription revenue by Rp1,200 billion, or 17.8, mobile long distance revenues increased by Rp487 billion, or 5.4, and Rp380 billion, or 2.7, in local cellular. Supported by the increased in mobile subscribe by 6.9 from 131.5 million in 2013 to 140.6 million in 2014. Chargable MoU increased by 15.0 to 161.4 billion minutes in 2014. Our personal segment expenses increase by Rp5,323 billion, or 13.5 from Rp39,463 billion in 2013 to Rp44,786 billion in 2014, primarily due to the increased in operation and maintenance expenses by Rp4,192 billion, or 25.4, due to the increased of antenna and tower expense by Rp1,014 billion, or 40.8, and radio base station expense by Rp446 billion, or 11.7, due to the growth of BTS number by 22.3 from 69,864 unit in 2013 to 85.420 units in 2014. Increased in leased line expense by Rp799 billion, or 8,027.4, an increased in satellite transmission expense by Rp411 billion, or 9,724.6, Rp432 billion, or 5,714.3, in outsourcing. Land and buildings expense increased by Rp270 billion, or 65.5, in line with the increased in the number of BTS and GraPARI. USO expense increased by Rp222 billion, or 29.4 and lease building expense increased by Rp159.2 billion, or 21.9. Depreciation expense increase Rp837 billion or 7.45 and Impairment of ixed assets increased Rp209 billion, or 35 due to the increased in depreciation of equipment and installation of transmission by Rp1,279 billion, or 18.6, were ofset by a decreased in depreciation expense lease assets - equipment and installations transmission by Rp264 billion, or 29.5. Other Segment Our other segment revenues increase by Rp745 billion, or 65.5, from Rp1,138 billion in 2013 to Rp1,883 billion in 2014 mainly due to an increase in building management revenue by Rp499 billion, or 112.6, due to the addition of building management combine with energy management, and additional rental of completed buildings. Total area of the building being leased in 2014 increased by 5.5, transport management services revenue increased by Rp66 billion, or 116.8. Security services revenue increased by Rp55 billion, or 20.6, due to the addition of personnel and an increase in the UMR in 2014, and management projects revenue increased by Rp50 billion, or 29.6. Our other segment expenses increase by Rp710 billion, or 70.4, from Rp1,008 billion in 2013 to Rp1,718 billion in 2014 mainly due to an increased in operating and maintenance expense by Rp652 billion, or 79.0, due to the increased in electric by Rp494 billion, or 345.8, increased in security services expenses by Rp40 billion, or 17.2, due to the addition of personnel and salary increased as a result of the minimum wage property expense Rp71.3 billion, or 22.2 because of property sale. The increased was also due to an increased in the personnel expenses by Rp27 billion, or 28.7, due to an increase in outsourcing expense. 116 PT Telkom Indonesia Persero Tbk Revenues 2014 restated Revenues 2013 Segment Revenues Comparison

9, 34

9 8 .7 9, 46 3 9 .7 29 ,4 15 2

7.4 25

,59 2 6 .2 1,883 1.8 1,138 1.2 6 6,68 6 62.1 61 ,386 62.9 Expenses 2014 restated Expenses 2014 restated Expenses 2013 Expenses 2013 Segment Expenses Comparison Segment Results Comparison 8,9 60 11 .5 8,8 85 1 2. 7 22 ,6 63 2 9 .0 20 ,37 5 2 9 .2 1,718 2.2 1,008 1.4 4 4,78 6 57.3 39 ,463 56.6 38 9

1. 3

57 8 2 .1 165 0.6 130 0.5

21, 90

0 7 5.0

21, 92

3 7 8.7 6,7 52 2 3 .1 5,215 18 .7 117 PT Telkom Indonesia Persero Tbk MARKETING STRATEGY We have implement a comprehensive marketing strategy to bolster our brand and to boost sales as well, including through marketing communication activities and product and service distribution channel development. We implement a “paradox marketing” framework in managing our marketing as illustrated in following diagram: In our implementation of the “paradox marketing” framework as illustrated above, the “more for less” concept is based on the value preposition of the products and services we ofer to customers, with the aim that customers can acquire more relevant beneits at a lower price compared to our competitors, with mass customization that is in line with customers’ requirements for our products and services. In the consumer segment business portfolio which includes consumer home services and consumer personal services, in 2015, we introduce the new IndiHome service, which bundles in all in one packages at a competitive price services consisting primarily of broadband Internet, ixed line residential phone, and interactive TV services. The IndiHome package includes high speed internet services of up to 100 Mbps, and domestic calls which may include, depending on the speciic package, a limited amount of free domestic calls. The interactive TV service, which is supported with IPTV internet protocol television technology, provides customers with a new lexible way to watch television that allows customers to pause, rewind and replay content, and also to select and watch re-runs of TV programs which has aired up to 7 days before. The IndiHome package also includes free unlimited music streaming from MelOn digital music service and three-months free antivirus protection. In addition, we have also developed additional or add- on services to provide more beneits to the customers, PLACE Community Based Channel Partnership “Buyer as a Seller” MAIN TACTIC: “THE TOP” PRODUCT Bundling of Connectivity + Content “Commodity customization” CONSUMER ENTERPRISE PRODUCT PRICE Small Domination “Perceptions are MORE important than reality” RETAIL WHOLESALE PRICE PROMOTION Social Networking Based Promotion “Low budget high impact” SOCIAL PERSONAL PROMO TION SUPPORTING TACTIC: “THE PILLARS” PRIVATE PUBLIC PUBLIC SEGMENTATION Community Based - Horizontal-Vertical-Cluster POSITIONING “More for Less” Mass Customization TARGETING End to end Solution Infografer STRATEGY: “THE FOUNDATION”