Treasury Stock SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Financial instruments continued

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 38

4. ACQUISITIONS OF AD MEDIKA

On January 25, 2010, Metra entered into a CSPA with Ad Medika’s stockholders, Ravi Varma Kanason, Sofian Susantio, Arthur Tahya PT Swadayanusa Kencana Raharja dan Shia Kok Fat, each of which is a third party, 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 with acquisition cost amounting to Rp.130,077 million including consultant fee Note 1d.b. Ad Medika is an electronic health care network company. Ad Medika is the largest health service administration management company in Indonesia. Through the acquisition, the Company began providing services through Insure Net as an initial National e-Health program. The acquisition of Ad Medika has been accounted for using the purchase method of accounting, where the purchase price was allocated to the fair value of the acquired assets and assumed liabilities. The allocation of the acquisition cost was as follows: Rp. The assets and liabilities arising from the acquisition are as follows: Current assets 26,404 Property, plant and equipments 17,110 Intangible assets 45,591 Current liabilities 22,057 Long-term liabilities 8,143 Deferred tax liabilities 9,919 Non-controling interests 4,145 Fair value of net assets acquired 44,841 Goodwill 85,236 Total purchase consideration 130,077 Less: Cash and cash equivalents in subsidiary acquired 13,574 Cash outflow from acquisition 116,503 Metra acquired control of Ad Medika on February 25, 2010 and the valuation was performed by an independent appraisal using the statement of financial position amount as of February 28, 2010, being the nearest convenient statement of financial position date. The Company’s consolidated results of operations have included the operating results of Ad Medika since March 1, 2010. The intangible assets acquired included customer contracts and backlog, non contractual customer relationships, trademarks and tradenames, and a non compete agreement Note 13.