Significant agreements with related parties

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 103

38. SEGMENT INFORMATION continued

Segment revenues and expenses include transactions between operating segments and are accounted atmarket prices. 2014 Total before Total Corporate Home Personal Others elimination Elimination consolidated Segment results Revenues External revenues 12,264 6,418 47,024 135 65,841 - 65,841 Inter-segment revenues 9,553 242 2,039 1,187 13,021 13,021 - Total segment revenues 21,817 6,660 49,063 1,322 78,862 13,021 65,841 Expenses External expenses 9,969 5,265 27,270 1,205 43,709 - 43,709 Inter-segment expenses 6,751 357 5,899 14 13,021 13,021 - Total segment expenses 16,720 5,622 33,169 1,219 56,730 13,021 43,709 Segment results 5,097 1,038 15,894 103 22,132 - 22,132 Other information Segment assets 47,588 22,612 77,276 1,987 149,463 12,986 136,477 Asset held-for-sale 17 - 65 - 82 - 82 Long-term investments 74 1,621 21 - 1,716 - 1,716 Total consolidated assets 138,275 Capital expenditures 5,961 2,635 9,999 397 18,992 - 18,992 Depreciation and amortization 1,938 1,081 8,785 42 11,846 - 11,846 Impairment of assets - - 190 - 190 - 190 Provision for impairment of receivables and inventory obsolescence 118 183 75 1 375 - 375 2013 Total before Total Corporate Home Personal Others elimination Elimination consolidated Segment results Revenues External revenues 11,289 6,685 43,388 137 61,499 - 61,499 Inter-segment revenues 7,367 257 1,623 589 9,836 9,836 - Total segment revenues 18,656 6,942 45,011 726 71,335 9,836 61,499 Expenses External expenses 10,544 5,333 23,664 656 40,197 - 40,197 Inter-segment expenses 4,190 1,175 4,461 10 9,836 9,836 - Total segment expenses 14,734 6,508 28,125 666 50,033 9,836 40,197 Segment results 3,922 434 16,886 60 21,302 - 21,302 Other information Segment assets 39,079 18,879 69,478 1,222 128,658 8,078 120,580 Asset available for sale - - 73 - 73 - 73 Long-term investments 122 - 20 - 142 - 142 Total consolidated assets 39,201 18,879 69,571 1,222 128,873 8,078 120,795 Capital expenditures 3,137 1,058 11,009 459 15,663 - 15,663 Depreciation and amortization 1,693 1,100 8,253 28 11,074 2 11,072 Impairment of assets Provision for impairment of receivables and inventory obsolescence 183 225 160 1 569 - 569 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 104

38. SEGMENT INFORMATION continued

The Company predominantly generates revenue and profit within Indonesia. Revenue with respect to international interconnections and assets held by geographical location are disclosed in Note 26 and Note 1, respectively.

39. REVENUE-SHARING ARRANGEMENTS “RSA”

The Company has entered into separate agreements with several investors under RSA to develop fixed lines, public card-phone booths, data and internet network, and related supporting telecommunications facilities. As of September 30, 2014, the Company has 4 RSA’s with 4 investors. The RSA’s are located in East Java, Makassar, Pare-pare, Manado, Denpasar, Mataram and Kupang, with concession periods ranging from 129 to 148 months. Under the RSA, the investors finance the costs incurred in developing the telecommunications facilities and the Company manages and operates the telecommunications facilities upon the completion of the construction. Repairs and maintenance costs during RSA period are borne jointly by the Company and investors. The investors legally retain the rights to the property and equipment constructed by them during the RSA periods. At the end of the RSA period, the investors transfer the ownership of the telecommunications facilities to the Company at a nominal price. Generally, the revenues earned in the form of line installation charges, outgoing telephone pulses and monthly subscription charges are shared between the Company and investors based on certain agreed amount andor ratio.

40. TELECOMMUNICATIONS SERVICE TARIFFS

Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating telecommunications network andor services are determined by providers based on the tariff type, structure and with respect to the price cap formula set by the Government.

a. Fixed line telephone tariffs

The Government has issued a new adjustment tariff formula which is stipulated in the Decree No. 15PERM.KOMINFO42008 dated April 30, 2008 of the Ministry of Communication and Information “MoCI” concerning “Procedure for Tariff Determination for Basic Telephony Services Connected through Fixed Line Network”. Under the Decree, tariff structure for basic telephony services connected through fixed line network consists of the following:  Activation fee  Monthly subscription charges  Usage charges  Additional facilities fee.

b. Mobile cellular telephone tariffs

On April 7, 2008, the MoCI issued Decree No. 09PERM.KOMINFO042008 regarding “Mechanism to Determine Tariff of Telecommunication Services Connected through Mobile Cellular Network” which provides guidelines to determine cellular tariffs with a formula consisting of network element cost and retail services activity cost. This Decree replaced the previous Decree No. 12PERM.KOMINFO022006.