Network Infrastructure AR TELKOM 2015 ENG.

122 PT Telkom Indonesia Persero Tbk Media and Edutainment Business

6. Digital Consumer

Our digital consumer business portfolio comprises primarily media and edutainment services offered to consumers such as e-commerce services, videoTV services pay TV, IPTV and over the top OTT TV, and digital mobile services game, music and mobile digital life services. OVERVIEW OF TELECOMMUNICATION RATES Under Law No.36 Year 1999 and Government Regulation No.52 Year 2000, tarifs for operating telecommunications network andor services are determined by providers based on the tarif type, structure and with respect to the price cap formula set by the Government.

a. Fixed line telephone tarifs

The Government has issued a new adjustment tarif formula which is stipulated in the Decree No.15 PERM.KOMINFO42008 dated April 30, 2008 of the Ministry of Communication and Information “MoCI” concerning “Mechanism to Determine Tarif of Basic Telephony Services Connected through Fixed Line Network”. Under the Decree, tarif structure for basic telephony services connected through ixed line network consists of the following: - Activation fee - Monthly subscription charges - Usage charges - Additional facilities fee

b. Mobile cellular telephone tarifs

On April 7, 2008, the MoCI issued Decree No.09 PERM.KOMINFO042008 regarding “Mechanism to Determine Tarif of Telecommunication Services Connected through Mobile Cellular Network” which provides guidelines to determine cellular tarifs with a formula consisting of network element cost and retail services activity cost. This Decree replaced the previous Decree No.12PERM.KOMINFO022006. Under MoCI Decree No.09PERM.KOMINFO042008 dated April 7, 2008, the cellular tarifs of operating telecommunication services connected through mobile cellular network consist of the following: − Basic telephony services tarif, − Roaming tarif, andor − Multimedia services tarif, with the following traic structure: − Activation fee − Monthly subscription charges − Usage charges − Additional facilities fee

c. interconnection tarifs

The Indonesian Telecommunication Regulatory Body “ITRB”, in its letter No.262BRTIXII2011 dated December 12, 2011, decided to change the basis for SMS interconnection tarif to cost basis with a maximum tarif of Rp23 per SMS efective from June 1, 2012, for all telecommunication provider operators. Based on letter No.118KOMINFODJPPI PI.02.04012014 dated January 30, 2014 of the Director General of Post and Informatics, the Director General of Post and Informatics decided to implement new interconnection tarif efective from February 1, 2014 until December 31, 2016, subject to evaluation on an annual basis. Pursuant to the Director General of Post and Informatics letter, the Company and Telkomsel are required to submit the Reference Interconnection Ofer “RIO” proposal to ITRB to be evaluated. Subsequently, ITRB in its letters No.60BRTIIII2014 dated March 10, 2014 and No.125BRTIIV2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of RIO regarding the interconnection tarif. Based on the letter, ITRB also approved the changes to the SMS interconnection tarif to Rp24 per SMS.

d. network lease tarifs

Through MoCI Decree No.03PERM.KOMINFO12007 dated January 26, 2007 concerning “Network Lease”, the Government regulated the form, type, tarif structure, and tarif formula for services of network lease. Pursuant to the MoCI Decree, the Director General of Post and Telecommunication issued its Letter No. 115 Year 2008 dated March 24, 2008 which stated “The Agreement on Network Lease Service Type Document, Network Lease Service Tarif, Available Capacity of Network Lease Service, Quality of Network Lease Service, and Provision Procedure of Network Lease Service in 2008 Owned by Dominant Network Lease Service Provider”, in conformity with the Company’s proposal.