COMMITMENTS AND SIGNIFICANT AGREEMENTS a.

100 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010 Figures in tables are presented in billions of Rupiah, unless otherwise stated 101

41. COMMITMENTS AND SIGNIFICANT AGREEMENTS continued

c. Others

continued ii Palapa Ring Consortium On November 10, 2007, the Company entered into a Construction and Maintenance Agreement “CMA” with 5 other companies for Palapa Ring Consortium. This consortium was formed to build optical fiber network in 32 cities in Eastern Indonesia with total initial investment of Rp.2,070 billion. The Company will obtain 4 lambdas bandwidth of total capacity of 8.44 lambdas from this consortium. In 2008, 2 companies draw back from the consortium, hence the total number of Palapa Ring Consortium’s member become 4 companies including the Company. On November 22, 2011, based on the letter of management of Palapa Ring Consortium No. 01PR-MCIV2011, the agreement of Palapa Ring Consortium was terminated. Subsequently, based on the letter of management of Palapa Ring Consortium No. 02PR- MCIV2011 dated December 28, 2011, the escrow account is closed and the escrow account balance amounted to US4.6 million has been returned to the Company. iii Radio Frequency Usage Based on the Decree No. 76 dated December 15, 2010 of Government of the Republic of Indonesia, which amended Decree No. 7 dated January 16, 2009, the annual frequency usage fees with a bandwidth of 800 Megahertz “MHz”, 900 MHz and 1800 MHz are determined using a formula set forth in the decree. The decree is applicable for 5 years unless further amended. As an implementation of the above decree, on December 15, 2010, in a Decision letter No. 456AKEPM.KOMINFO122010, the MoCI determined that the first year Y 1 annual frequency usage fee of Telkomsel with licenses in 900 MHz band and 1800 MHz band was Rp.716 billion and was paid on December 30, 2010. Based on the same Decision Letter above and a Decision letter No. 5039TDJPT.4KOMINFO122010 dated December 16, 2010, the MoCI determined that the first year Y 1 annual frequency usage fee of the Company with licenses in 800 MHz band was Rp.52 billion and was paid on December 27, 2010. Subsequently, based on Decision letter No. 590KEPM.KOMINFO112011 dated November 14, 2011, the Company and Telkomsel were considered over paid for Rp.31 billion and Rp.117 billion, respectively, which will be treated as an prepayment for annual frequency usage fee in the second year. Based on Decision Letter No. 349KEPM.KOMINFO082011 and No. 350KEPM.KOMINFO082011 dated August 8, 2011, the MoCI determined that the second year Y 2 annual frequency usage fee of the Company and Telkomsel were Rp.142 billion and Rp.1,834 billion, respectively. The fees were paid in December 2011, net of prepayment. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010 Figures in tables are presented in billions of Rupiah, unless otherwise stated 102

41. COMMITMENTS AND SIGNIFICANT AGREEMENTS continued