Metra On November 30, 2015, Metra acquired 13,850 shares of

161 PT Telkom Indonesia Persero Tbk Signiicant Diferences between ifaS indonesia and ifrS

1. land rights Based on PSAK, land rights is listed as a ixed asset and

is not amortized unless evidence exists to indicate that the extension or renewal of such land rights, most likely or deinitely, cannot be achieved. The cost to arrange the extension or legal renewal of land rights is recognized as an intangible asset and shall be amortized for as long as the legal age of such rights or for the duration of the economic life of the land, whichever one is briefer. Based on IFRS, land rights is listed as a inance lease and is presented as being part of ixed assets. The land right is amortized for the duration of the lease period.

2. transaction with related parties Based on Bapepam-LK Regulation No. VIII.G.7 regarding

the Presentation and Disclosure of the Financial Statements of Stock Issuers or Public Companies, related entities of the government are entities that are controlled, jointly controlled or are inluenced by the government. The term ‘government’ in this instance refers to the Minister of Finance or Regional Governments that are shareholders of an entity. Based on IFRS, related entities of the government are entities that are controlled, jointly controlled, or inluenced by the government. The term ‘government’ in this instance refers to the government, government institutions and similar bodies, be it local, national or international. operational overvieW netWorK infraStrUCtUre anD DevelopMent We believe that our achievement in 2015 was the result of our consistency in carrying out three main focus strategies, namely maintaining double digit growth for Telkomsel, the Indonesia Digital Network “IDN” program for “Driving the Digital Business” and international expansion “Stretch and Expand International Business”. In connection with our previous “Great to Break 100300” strategy and target to reach Rp100 trillion in revenues and Rp300 trillion in market capitalization in 2015, our Directorate of Network, Information and Technology, and Solution had established a systematic framework derived from our strategic plans and key initiatives. We’ve also made various strategic plans to support our vision to “Be the King of Digital in the Region”. We are committed to continuing the development of our telecommunication infrastructure so as to further strengthen our Company in Indonesia and globally. In line with our objectives, we classify our network infrastructure into two categories, namely, our international networks infrastructure, to support the our international expansion program, and our national network infrastructure, which supports the IDN program. international networks We operate international gateways in Batam, Jakarta, and Surabaya to route outgoing and incoming calls on our IDD service “007”. We curreny own or have interests in global submarine cable infrastructure that connects the continents of Europe, Asia, and America through submarine cable system consortiums for the Batam Singapore Cable System BSCS, Dumai Malacca Cable System DMCS, Asia America Gateway AAG, Singapore Japan Cable System SJC, Southeast Asia-United States SEA-US and Indonesia Global Gateway IGG which will soon be constructed. We, through our subsidiary Telin, are also a consortium member in the South East Asia – Middle East -Western Europe 5 “SEA-ME-WE 5” submarine cable system and the Southeast Asia – United States “SEA – USA” submarine cable system. SEA-ME-WE5 is a submarine cable system with a length of approximatelly 20,000 km stretching from Dumai, Indonesia to several countries in Southeast Asia, France and Italy, with direct connection from Indonesia to Europe. This submarine cable system has a capacity of 24 tera bits per second using 100 Gb technology. Construction began in September 2014 and the cable system is expected to begin carrying commercial traic in the fourth quarter of 2016. Telkom and NEC completed the landing of the SEA-ME-WE 5 submarine cable in Medan, North Sumatra on January 25, 2016. SEA–USA is submarine cable system with a length of approximatelly 15,000 km connecting Manado Indonesia, Davao Philippines, Piti Guam, Oahu Hawaii, United States, and Los Angeles California, United States. Construction began in March 2015 and the cable system is expected to begin carrying commercial traic in the fourth quarter of 2016. To support international services for both voice and data, Telin operates 25 points of presence “POP” in various