partnership Stores AR TELKOM 2015 ENG.1

125 PT Telkom Indonesia Persero Tbk The service delivery process for standard products and basic products uses the available organizational functions, while the service delivery for customized solutions and ecosystem solutions requires a Project Manager to manage the end to end process delivery. The SLA requested to the process delivery support for standard products and basic products shall use a SLA that is in accordance with the standards as set forth for each product. While for customized solutions and ecosystem solutions, we use speciic SLAs or SLAs that are in accordance with what has been set forth in a contract. Service assurance Standard products and basic solutions uses standard Service Legal Guarantees SLG as set forth in the product document, while customized solutions and ecosystem solutions require speciic SLGs or SLGs that are in accordance with what has been set forth in a contract with a customer. For problem handling management, Telkom uses contact centers managed by each customer segment. Engineers on Site EoS assist in problem handling activities located at the customer’s location or at a Telkom oice in accordance with the type of allocation. EoS are divided into 2 two, namely Shared EoS and Dedicated EoS. Shared EoS may be utilized by several customers and are usually used to accommodate the needs of standard products and basic solutions. Further, Dedicated EoS are placed at the location of a customer to assist the customer in problem handling in general, as well as to support delivery activities. Meanwhile, the allocation of dedicated EoS are usually designated for Top Priority Customers and may also be allocated based on product type as has been applied for customized solutions and ecosystem solutions. Customer protection Throughout 2015, we continue to pursue a variety of initiatives and improvements in the ield of products safety management, after-sales warranty and complaints services to provide convenient and guarantee customers protection, among others: a. Ensuring that a newly developed product can be the right commercial product that is well received in the market. We apply a standard guideline for the implementation of the incubation process of innovation products through the stages of: idea submission, customer and idea validation, product validation, business model validation and market validation. b. Holding the principle to ensure that the products and services are of high quality and able to provide maximum beneits as well as to contribute to economic growth. c. Always upholding the code of conduct in product sales direct sales, advertising and promotion. d. Applying ethical advertising practices by taking into account the applicable advertisement code of ethics in Indonesia. e. Ensuring that the products and after-sales services are conveniently available to the public. f. Supporting the implementation of fair competition practices and principles. g. Always oriented towards customer satisfaction. h. Constantly striving to meet required benchmarks as stipulated in various Ministerial Regulations that govern services quality standards, namely the Minister Regulation regarding Achievement of Local Fixed Line Services, SLJJ Fixed Line, International Network Fixed Line, Fixed Wireless Access FWA Fixed Line, and Teleponi Internet Services Quality Standards for Public Interest ITKP. i. Providing compensation if services do not comply with the required benchmarks. 126 PT Telkom Indonesia Persero Tbk Services Quality Measurement Services quality measurement is performed at several stages in accordance with the services process. In the process of interaction with distribution channels, mystery shopping and mystery calling activities are performed to ensure that the standard of services is implemented with quality and consistency. The indicator of such measurement is a Service Quality Index which is monitored and evaluated monthly. Each year, Customer Satisfaction and Loyalty Survey CSLS is perfomed by way of end- to-end method. The measured indicators are Customer Satisfaction Index CSI, Customer Dissatisfaction Index CDI and Customer Loyalty Index CLI. These indicators measure customers’ satisfaction level on 4 four pillars, which consist of products, price, promotions and services. In addition to the measurement on those indicators, improvement priorities of the above four pillars services attributes is mapped, so that an evaluation and follow- up can be carried out eiciently toward services quality improvement and customers’ satisfaction. Services Quality improvement programs Our programs to improve the quality of services and customer satisfaction include: • Higher Speed Same Price “HSSP” HSSP program is a retention program for customers to upgrade their Speedy Package one or more level above their current package with a ixed price so that customers receive a better experience as part our appreciation for loyal customers. • Indihome Suggested Package ISP The ISP program is an Indihome bundling package program ofered to existing customers by using “suggested packages”, namely certain Indihome packages which are speciically adjusted for each customer. • TAM – Tele Account Management TAM is customer management for the retail segment. Some customers are managed by one agent in order to perform caring or selling to such customer. • Telkom Membership Telkom Membership is a membership card for loyal customers with a variety of beneits and advantages. We implement the program with the involvement of a bank Bank Mandiri. The beneits and advantages obtained by customers cover: a an ofer on Telkom bill payment using a Mandiri Credit Card; b an ofer on promotional packages to cross-sell and product upgrade; c a special sales promotion ofer for Mandiri Credit Card customers. • Integrated Customer Care Centre IC3 Tools Is an innovation that is implemented in order to expedite the handling of disruptions that occur to corporate customers that consist of a disruption handling dashboard and SLG Online. This dashboard can help speed-up the handling of disruptions process directly, thereby strenghtening Telkom’s position as the largest telecommunication services provider that always provides prime and reliable services as well as providing services in line with its promises to the customers. CUStoMer reCeivable ManageMent We have been implementing a periodic billing system in accordance with the characteristics of our products and our customer segments. We provide several modes of payment to facilitate our telecommunications services customers through host-to-host payment systems in cooperation with Collecting Agents “CA”, such as national commercial banks, regional commercial banks, PT Pos Indonesia, employee cooperatives, convenience stores, and others. Payment can be made in cash or non- cash. Cash payments can be done through our Telkom Services payment counters such as the Plasa Telkom counters, Cooperatives, Banks, post oices, convenience stores and other CA-subs; whereas non-cash payments can be made by auto debit, credit cards, bank transfers to Telkom’s account speciic to corporate customersOLO, Automated Teller Machines “ATMs”, mobile banking, internet banking or sources of funds Mcash or Tcash. Based on the modes of customer payments, in 2015, the composition of host-to-host Telkom customers consist of Tellers 40, ATMs 17, Post 11, Auto Debit 16, Internet Banking 9, Phone Banking 3, Mobile Banking 8.54, SMS Banking 15.7, and Credit Card 0.005. By the end of 2015, it could be concluded that Tellers, ATMs and Auto-Debit are still the primary payment mode choice of our customers.