continued INCOME TAX continued

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 81

40. INCOME TAX continued

d. continued

2005 2006 As restated Income before tax attributable to the Company 6,736,326 10,947,056 Less: Income subject to final tax 101,618 486,675 6,634,708 10,460,381 Temporary differences: Depreciation of property, plant and equipment 896,847 682,182 Gain on sale of property, plant and equipment 1,762 554 Allowance for doubtful accounts 214,223 130,165 Accounts receivable written-off 80,446 62,797 Allowance for inventory obsolescence 5,188 3,278 Inventory written-off 912 - Accrued early retirement benefits 558,366 - Payment for early retirement benefits 581,164 - Accrued employee benefits 37,188 259,030 Net periodic pension cost 87,748 471,515 Long service awards 62,312 62,733 Amortization of intangible assets 672,662 672,662 Amortization of deferred stock issuance costs 206,837 183,127 Amortization of landrights 1,707 3,373 Temporary differences of KSO units 67,009 60,633 Depreciation of property, plant and equipment under revenue-sharing arrangements 51,557 65,732 Amortization of unearned income on revenue- sharing arrangements 82,497 94,609 Payments of liability of business acquisition and the related interest 500,249 495,715 Provision for bonus - 37,309 Foreign exchange loss on liability of business acquisition 333,321 186,673 Foreign exchange losses capitalized to property under construction - 3,714 Capital leases - 20,362 Total temporary differences 1,694,649 865,691 The 2005 figures have been restated due to the adoption of PSAK 24R see Note 4a. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 82

0. INCOME TAX continued