SHORT-TERM BANK LOANS Disposal of Indonusa continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended Figures in tables are expressed in billions of rupiah, unless otherwise stated 74

31. TAXATION continued

c. Taxes payable continued 2013 2012 Subsidiaries Income taxes Article 4 2 - Final tax 48 37 Article 21 - Individual income tax 82 60 Article 23 - Withholding tax on service delivery 34 32 Article 25 - Installment of corporate income tax 440 378 Article 26 - Withholding tax on non-resident income 16 18 Article 29 - Corporate income tax 284 674 VAT 72 3 976 1,202 1,698 1,844 d. The components of income tax expense benefit are as follows: 2013 2012 Current The Company 909 878 Subsidiaries 6,086 5,750 6,995 6,628 Deferred The Company 149 501 Subsidiaries 13 261 136 762 6,859 5,866 The reconciliation between the income tax expense calculated by applying the applicable tax rate of 20 to the profit before income tax less income subject to final tax, and the net income tax expense as shown in the consolidated statement of comprehensive income is as follows: 2013 2012 Profit before income tax 27,149 24,228 Less income subject to final tax 1,780 913 25,369 23,315 Tax calculated at the Company’s applicable statutory tax rate of 20 5,074 4,663 Difference in applicable statutory tax rate for subsidiaries 1,213 1,050 Non-deductible expenses 460 381 Final income tax expenses 93 52 Others 19 280 Net income tax expense 6,859 5,866 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended Figures in tables are expressed in billions of rupiah, unless otherwise stated 75

31. TAXATION continued

d. The components of income tax expense benefit are as follows: continued The reconciliation between the profit before income tax and the estimated taxable income of the Company for the years ended December 31, 2013 and 2012 is as follows: 2013 2012 Profit before income tax 27,149 24,228 Add back consolidation eliminations 11,992 10,536 Consolidated profit before income tax and eliminations 39,141 34,764 Less profit before income tax of the subsidiaries 24,143 21,616 Profit before income tax attributable to the Company 14,998 13,148 Less income subject to final tax 433 344 14,565 12,804 Temporary differences: Provision for impairment and trade receivables written-off 854 43 Provision for impairment of assets 596 246 Net periodic pension and other post-retirement benefits costs 414 291 Finance lease 366 196 Deferred installation fee 83 72 Provision for personnel expenses 13 537 Valuation of fair value of long-term investment 352 - Depreciation and gain on sale of property and equipment 403 424 Payment of provision for early retirement program 699 699 Other provisions 33 19 Net temporary differences 879 1,105 Permanent differences: Net periodic post-retirement health care benefit costs 374 90 Employee benefits 247 218 Donations 193 215 Equity in net income of associates and subsidiaries 11,979 10,583 Gain on sale of long term investment 499 - Others 460 360 Net permanent differences 11,204 9,700 Taxable income of the Company 4,240 4,209 Current corporate income tax expense 848 842 Final income tax expense 61 36 Total current income tax expense of the Company 909 878 Current income tax expense of the subsidiaries 6,086 5,750 Total current income tax expense 6,995 6,628