PERSONNEL EXPENSES 2007 FS30Sep08EngFinal1

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 73

38. TAXATION continued

c. Taxes payable continued 2007 2008 Subsidiaries Income taxes Article 21 - Individual income tax 23,724 36,294 Article 22 - Withholding tax on goods delivery and import 1 2 Article 23 - Withholding tax on services delivery 29,344 65,496 Article 25 - Installment of corporate income tax 238,379 419,190 Article 26 - Withholding tax on non-resident income tax 3,956 6,862 Article 29 - Overpayment underpayment of corporate income tax 885,268 327,709 VAT 160,629 80,675 1,341,301 280,810 2,234,461 1,105,281 d. The components of income tax expense benefit are as follows: 2007 2008 Current The Company 1,258,795 1,470,362 Subsidiaries 3,935,795 3,516,696 5,194,590 4,987,058 Deferred The Company 417,924 52,968 Subsidiaries 309,205 370,352 727,129 423,320 Benefits of deferred tax from reduction in tax rate The Company - 167,079 Subsidiaries - 421,379 - 588,458 5,921,719 4,821,920 e. Corporate income tax is computed for each individual company as a separate legal entity consolidated financial statements are not applicable for computing corporate income tax in Indonesia. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 74

38. TAXATION continued

e. continued The reconciliation between the consolidated income before tax and taxable income attributable to the Company and the consolidated income tax expense are as follows: 2007 2008 Consolidated income before tax 19,159,050 16,937,902 Add back consolidation eliminations 6,383,151 6,019,451 Consolidated income before tax and eliminations 25,542,201 22,957,353 Less: income before tax of the subsidiaries 14,046,427 12,681,216 Income before tax attributable to the Company 11,495,774 10,276,137 Less: income subject to final tax 464,792 520,951 11,030,982 9,755,186 Tax calculated at progressive rates 3,309,277 2,926,538 Non-taxable income 1,917,021 1,806,578 Non-deductible expenses 273,834 330,884 Deferred tax assets originating from previously unrecognized temporary differences - net 47,807 10,029 Effect on the Company’s deferred tax liabilities of reduction in tax rate - net - 167,079 Corporate income tax expense 1,618,283 1,293,794 Final income tax expense 58,436 62,457 Total income tax expense of the Company 1,676,719 1,356,251 Income tax expense of the subsidiaries 4,245,000 3,887,048 Effect on subsidiaries’ deferred tax liabilities of reduction in tax rate - net - 421,379 Total consolidated income tax expense 5,921,719 4,821,920