net income per Share revenues Operating Proit and operating proit Margin proit before income tax and pre-tax Margin income tax expense

141 PT Telkom Indonesia Persero Tbk

a. Cellular Telephone Revenues

Cellular telephone revenues increased by Rp2,152 billion, or 6.7, from Rp32,138 billion in 2013 to Rp34,290 billion in 2014. Usage charges increased by Rp2,250 billion, or 7.3, from Rp30,722 billion in 2013 to Rp32,972 billion in 2014 due to an increase of 6.9 in both our prepaid and postpaid subscriber, also due to increasing of our local and long distance usage. Revenues from features increased by Rp65 billion, or 9.5 from Rp686 billion in 2013 to Rp751 billion in 2014 due to increase in usage features by our subscribers. Monthly subscription charges decreased by Rp163 billion, or 22.3, from Rp730 billion in 2013 to Rp567 billion in 2014. Our total cellular telephone revenues accounted for 38.2 of our consolidated revenues for the year ended December 31, 2014.

b. Fixed Lines Revenues

Fixed lines revenues decreased by Rp1,061 billion, or 11.2, from Rp9,496 billion in 2013 to Rp8,435 billion in 2014. The decrease in ixed lines revenues due to decrease in ixed wireline revenue and ixed wireless revenues by 5.1 and 59.9. The decrease was primarily due to decrease in usage charges of Rp1,106 billion, or 17.1, caused by a decrease in local and domestic long distance usage. The decreased in ixed lines revenues was partially ofset by an increased in our call center revenues by Rp171 billion, or 143.7.

c. Data, Internet and Information Technology Services Revenues

Our data, internet and information technology service revenues accounted for 42.2 of our consolidated revenues for the year ended December 31, 2014, compared to 39.6 for the year ended December 31, 2013. Data, internet and information technology service revenues increased by Rp4,931 billion, or 15.0, from Rp32,877 billion in 2013 to Rp37,808 billion in 2014. This increased was primarily due to an increase in revenues from cellular internet by Rp3,450 billion, or 34.1 primarily from an increase of 80.7 in Flash subscribers from 17.3 million subscribers in 2013 to 31.2 million subscribers in 2014. SMS Revenues increased by Rp900 billion, or 6.9, from Rp13,134 billion in 2013 to Rp14,034 billion in 2014.

d. Interconnection Revenues

Interconnection revenues comprised interconnection revenues from our ixed line network and interconnection revenues from Telkomsel’s mobile cellular network. Including incoming international long-distance revenues from our IDD service TIC-007. Interconnection revenues decreased by Rp135 billion, or 2.8, from Rp4,843 billion in 2013 to Rp4,708 billion in 2014 primarily due to a decrease in incoming calls to our subcribers.

e. Network Revenues

Network revenues increased by Rp27 billion, or 2.2, from Rp1,253 billion in 2013 to Rp1,280 billion in 2014 primarily due to an increase in our satellite transponder lease revenue by Rp278 billion, or 70.9, from Rp392 billion in 2013 to Rp670 billion in 2014 as result of an increase in satellite transponder capacity lease by 18,4 from 3.007 million MHz in 2013 to 3.560 million MHz in 2014.

f. Other Telecommunications Services

Revenues In 2014, revenues from other telecommunications service increased by Rp815 billion, or 34.5, from Rp2,360 billion in 2013 to Rp3,175 billion in 2014. The increase was primarily due to an increase in CPE revenue by Rp351 billion, or 351.0 and sales of handset by Rp498 billion, or 592.9. It was partly ofset primarily by decreased in other revenues amounted to Rp405 billion, or 28.9 due to a decreased in USO compensation.

g. Other Income

Other income decreased by Rp1,505 billion, from Rp2,579 billion in 2013 to Rp1,074 billion in 2014 as we had recognized a gain on the sale of 80 of our ownership in PT Indonusa. 142 PT Telkom Indonesia Persero Tbk

2. Expenses

Total expenses increased by Rp3,864 billion, or 6.7, from Rp57,700 billion in 2013 to Rp61,564 billion in 2014. For futher explaination as shown below:

a. Operations, Maintenance and

Telecommunication Service Expenses Operations, maintenance and telecommunication service expenses increased by Rp2,956 billion, or 15.3, from Rp19,332 billion in 2013 to Rp22,288 billion in 2014. The increase in operations, maintenance and telecommunication service expenses was primarily attributable to the following: − Operations and maintenance of Rp2,169 billion, or 22.5, due to an increase in expenses associated with network maintenance to improve our mobile cellular business performance; − Leased lines and CPE increased by Rp318 billion, or 72.3, which was used for operation and maintenance of leased lines as a result of an increased in projects from our corporate customers; − Cost of handset increase by Rp268 billion, or 175.2, from Rp153 billion in 2013 to Rp421 billion in 2014 due to modem and terminal bundling program. The above increases were ofset by decreased in cost of IT services by Rp320 billion, or 47.2, from Rp677 billion in 2013 to Rp357 billion in 2014 due to eiciency gains as a result of of using integrated system.

b. Depreciation and Amortization Expenses

Depreciation and amortization expenses increased by Rp1,351 billion, or 8.6, from Rp15,780 billion in 2013 to Rp17,131 billion in 2014, primarily due to an increase in depreciation expense related to switching equipment as an eforts improving service to customers and by our allowance for impairment losses of ixed assets due to changes in business strategies for our ixed wireless line.

c. Personnel Expenses

Personnel expenses increased by Rp54 billion, or 0.6, from Rp9,733 billion in 2013 to Rp9,787 billion in 2014 due to a increased in salaries and related beneits by Rp206 billion, or 5.8, due to increased personnel amount by 1.37 in 2013 from 25,011 people to 25,284 people in 2014. This resulted an increased in employees’ income tax by Rp157 billion, or 13.5 from Rp1,160 billion in 2013 to Rp1,317 billion in 2014. 4,155 7.2 4 80 0.8 9 ,3 8 3 16 .9 4 ,9 2 7 8 .5 15 , 780 27 . 3 1 9 ,3 3 2 3 3 . 5 2013 2014 restated Composition of Expenses 1 4 . 2 4 9 . 4 22 ,2 8 8 3 6 .2 1 7 , 131 27. 8 9 ,7 8 7 15 .9 3,96 3 6.4 4 ,8 93 7. 9 3 ,0 9 2 5 . 3 9 6. 1 0. 6 3 , 4 4 5 .3 Operations Maintenance Depreciation Amortization Interconnection Others Gain loss on Foreign Exchange Marketing Personnel General Administrative

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PT Telkom Indonesia Persero Tbk This increased was ofset by decreased in net periodic post-retirement health care beneits costs amounted to Rp126 billion, or 33.7 and decreased in net periodic pension costs by Rp219 billion, or 25.1 according to actuarial accounting.

d. Interconnection Expense

Interconnection expense decreased by Rp34 billion, or 0.7, from Rp4,927 billion in 2013 to Rp4,893 billion in 2014 primarily due to an decrease of Rp81 billion, or 2.2 in domestic interconnection and transit interconnection expense.

e. Marketing Expense

Marketing expenses increased by Rp48 billion, or 1.6, from Rp3,044 billion in 2013 to Rp3,092 billion in 2014 due to an increase of Rp80 billion, or 15.1 in customer education expenses, primarily for our broadband service. The increase was ofset by decrease in advertising and promotion expenses by Rp18 billion, or 0.7, due to the selective use of media for promotion and increased group synergy in marketing our products.

f. General and Administrative Expenses

General and administrative expenses decreased by Rp192 billion, or 4.6, from Rp4,155 billion in 2013 to Rp3,963 billion in 2014 primarily due in part to an decrease in provision for doubtful impairment of receivables by Rp805 billion, or 50.7. This decreased was partially ofset with an increase in general expense by Rp292 billion, or 43.3 and also an in our training, education and recruitment expense by Rp116, or 28.2.

g. Gain loss on Foreign Exchange - net

Loss on foreign exchange - net decreased by Rp235 billion, or 94.4, from Rp249 billion in 2013 to Rp14 billion in 2014.

h. Other Expenses

Other expenses decreased by Rp84 billion, or 17.5 from Rp480 billion in 2013 to Rp396 billion in 2014.

3. Operating Proit and operating proit Margin

As a result of the foregoing, operating proit increased by Rp1,360 billion, or 4.9, from Rp27,846 billion in 2013 to Rp29,206 billion in 2014. Operating proit margin decreased from 33.6 in 2013 to 32.6 in 2014.

4. proit before income tax and pre-tax Margin

As a result of the foregoing, proit before income tax increased by Rp1,464 billion, or 5.4, from Rp27,149 billion in 2013 to Rp28,613 billion in 2014. Pre-tax margin increased from 32.7 in 2013 to 31.9 in 2014.

5. income tax expense

Income tax expense decreased by Rp480 billion, or 7.0, from Rp6,859 billion in 2013 to Rp7,339 billion in 2014, in line with the increase in proit before income tax.

6. other Comprehensive income

Other comprehensive income increased by Rp655 billion, or 584.8, from Rp112 billion in 2013 to Rp767 billion in 2014.

7. proit for the year attributable to owners of the parent Company

Proit for the year attributable to owners of the parent company increased by Rp266 billion, or 1.9, from Rp14,205 billion in 2013 to Rp14,471 billion in 2014.

8. proit for the year attributable to non- controlling interest

Proit for the year attributable to non-controlling interest increased by Rp718 billion, or 11.8, from Rp6,085 billion in 2013 to Rp6,803 billion in 2014.

9. Comprehensive income for the year

Comprehensive income for the year increased by Rp1,639 billion, or 8.0, from Rp20,402 billion in 2013 to Rp22,041 billion in 2014.

10. net income per Share

Net income per share increased by Rp0.7, or 0.5, from Rp147.42 in 2013 to Rp148.13 in 2014

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PT Telkom Indonesia Persero Tbk CASH FLOW STATEMENT OVERVIEW The following table sets out information concerning our consolidated cash lows, as set out in and prepared on the same basis as our Consolidated Financial Statements: Growth As of Desember 31, 2015-2014 2015 2014 Restated 2013 Rp billion US million Rp billion Rp billion Net Cash provided by operating activities 15.7 43,669 3,168 37,736 36,574 used in investing activities 10.8 27,421 1,989 24,748 22,702 used in inancing activities 36.5 6,407 465 10,083 13,327 Net increase in cash and cash equivalents 238.8 9,841 714 2,905 545 Efect of exchange rate changes on cash and cash equivalents 750.7 604 44 71 1,039 Cash and cash equivalents at beginning of year 20.3 17,672 1,282 14,696 13,118 Ending balance of disposed subsidiary - - - - 6 Cash and cash equivalents at end of year 59.1 28,117 2,040 17,672 14,696