Consumer Protection USO AR TELKOM 2015 ENG.

175 PT Telkom Indonesia Persero Tbk of our and Telkomsel’s unconsolidated gross revenues, net of bad debts andor interconnection charges andor connection charges. Pursuant to Decree No.45 year 2012 of the MoCI which was efective from January 22, 2013. The Decree stipulates, among other things, the exclusion of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged, and changes to the payment period which was previously on a quarterly basis to become quarterly or semi-annually.

14. Telecommunication Regulatory Charges

On January 16, 2009, the Government issued Government Regulation No.72009, which sets the types of non- tax state revenues that apply to the MoCI derived from various services, including telecommunications. On December 13, 2010, the Government issued Government Regulation No.762010 amending Government Regulation No.72009. Pursuant to Government Regulation No.762010, we are no longer required to pay right-of-use fees calculated with reference to the BTSs that we deploy in our network, except for BTSs deployed in our backbone, with efect from December 15, 2010. As a result, our right- of-use fees are now calculated based on the bandwidth of the radio frequency spectrum that we use. In addition to radio frequency spectrum right-of- use fees, Government Regulation No.72009 requires all telecommunications operators to pay an annual license fee for telecommunication operation, which is equal to 0.5 of unconsolidated gross revenues, net of bad debts andor interconnection charges andor connection charges. Pursuant to Law No.282009 regarding Local Taxes and Local Fees, local governments are permitted to impose fees on the sites that we use for telecommunications towers. The fees may not exceed 2 of the site’s assessed tax value. Currently, there are some 525 local provincial and regency level governments through out Indonesia that may be authorized to impose these fees to increase in the future.

15. Telecommunications Towers

On March 17, 2008, the MoCI issued MoCI Regulation No.02PERM.KOMINFO32008 regarding Guidelines on Construction and Utilization of Sharing Telecommunication Towers “MoCI Regulation No.022008”. Under MoCI Regulation No.022008, the construction of telecommunications towers requires permits from the relevant governmental institution, while the local government determines the placement and locations at which telecommunications towers may be constructed. In addition, telecommunications providers that own telecommunication towers and other tower owners are obligated to allow other telecommunication operators to utilize their telecommunication towers without any discrimination, with due regards to the technical capacity of the respective tower. Since the operations of telecommunication towers involves a number of relevant Government bodies, on March 30, 2009, a joint regulation is issued in the forms of Minister of Home Afairs Regulation No.182009, Minister of Public Works Regulation No.07PRTM2009, MoCI Regulation No.19PER.M.KOMINFO032009 and Head of the Investment Coordinating Board Regulation No.3P2009 regarding Guidelines for the Construction and Shared Use of Telecommunications Towers “Joint Decree”. 176 PT Telkom Indonesia Persero Tbk The Joint Decree regulates that license for telecommunication tower construction is to be issued by regents or mayors, and for Jakarta Province, its Governor. The Joint Decree also provides for tower construction standards and requires that telecommunications towers be made generally available for shared use by telecommunications service providers. The owner of a telecommunications tower is allowed to collect a fee, which is negotiated with reference to costs associated with investment and operational costs, the return of investment and a proit. Monopolistic practices in the ownership and management of telecommunications towers is prohibited.

16. Content Provider Service

Content provider service is regulated by the Ministry of Communication and Information through Regulation No.212013 on the Management of Content Provider Services on Celullar Mobile Networks and Wireless Local Static Networks with Limited Mobility, as ammended by the Ministry of Communication and Information Regulation No.62015 of February 6, 2015. FUNCTIONAL OVERVIEW HUMAN CAPITAL Develop Great Leader, Great People, and Great Culture Directorate of Human Capital Management HCM Telkom has a great responsibility to continue to support the achievement of business objectives of Telkom Group in order to position the Company as one of the largest telecommunications companies in Indonesia. Directorate of HCM supports our business through the implementation of a competency-based human resource development strategy that is applied to manpower planning, the process of selection and recruitment, learning and development, performance management and career development programs, as well as compensation and beneits scheme. To ensure that all employees have the appropriate competence respective ield and always maintain good quality in an efort to realize the Company’s vision, which is Be The King of Digital, the Company has developed a competency development program that applies to all employees of Telkom Group. The program in question include a certification program and global talent program. Both of these programs are running in line with efforts to welcome the ASEAN Economic Community AEC which starts from the end of 2015. We believe that human resources are the most important asset of the Company, and therefore we have a strong commitment to developing the potential of our employees. Employee development is done through appropriate training methods to empower and improve their skills and expertise. Our competence development programs include aspects of business and organizations, and includes product knowledge, control and compliance, related to the efectiveness of individual self-development, functional competence, leadership and character development of employees. As such, we are committed to continue to develop the competencies and capabilities of all employees; to always nurture good labor relations with employees; and to create the interactive engagement among employees. In addition, the Company also expects that every employee is fully responsible for their self-development, and is committed to generating superior performance in order to realize a professional corporate culture and global standards. The Company has developed a Human Capital Master Plan to ensure the best management of Human Capital, in order to support the implementation of corporate business strategy. Preparation of Human Capital Master Plan was developed with reference to the long-term corporate planning and annual plans and business strategies of each company incorporated in the Telkom Group. Preparation of Human Capital Master Plan also refers to an internal analysis and current issues related to Human Capital happens to the world’s leading companies. Related to human resource management, we are committed to run the entire Human Capital program that have been developed to relect the essence of the program clearly Get The Essence; must be carried out efectively and eiciently Efective and Eicient; and using a personal approach or per individual employee Personalized Approach. The principles of human resource management is relected in our Human Capital Master Plan, which is divided into: • Strategic initiatives of Human Capital for a period of ive years in the future; • Key programs as the elaboration of a strategic initiative of Human Capital; • Strategic guidelines for each manager of Human Capital in the Telkom Group; and • Strategic planning of workforce within the next ive years, which contains the annual HR plan in each company Telkom Group, including the projections of the amount of human capital and employee productivity levels to be achieved within the next ive years. Preparation of Human Capital Master Plan of Telkom Group in an integrated manner will also assist the Company in managing human capital as a whole, on target, and ensure the realization of the role of Human Capital as a corporate strategic partner in order to achieve business goals that have been set.