875 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 98

32. OPERATING SEGMENT

Segment revenues and expenses include transactions between operating segments and are accounted at prices that management believes represent market prices. 2016 Corporate Home Personal Others Total before elimination Elimination Total consolidated Segment results Revenues External revenues 24,177 7,803 83,990 363 116,333 - 116,333 Inter-segment revenues 32,675 5,077 2,724 2,395 42,871 42,871 - Total segment revenues 56,852 12,880 86,714 2,758 159,204 42,871 116,333 Expenses External expenses 26,014 10,201 38,800 2,123 77,138 - 77,138 Inter-segment expenses 22,331 2,375 12,503 426 37,635 37,635 - Total segment expenses 48,345 12,576 51,303 2,549 114,773 37,635 77,138 Segment results 8,507 304 35,411 209 44,431 5,236 39,195 Other information Capital expenditures 11,419 4,437 12,565 778 29,199 - 29,199 Depreciation and amortization 4,148 1,711 12,549 124 18,532 - 18,532 Provision recognized in current period 87 424 222 10 743 - 743 2015 Corporate Home Personal Others Total before elimination Elimination Total consolidated Segment results Revenues External revenues 21,072 7,319 73,766 313 102,470 - 102,470 Inter-segment revenues 14,347 4,352 2,365 1,943 23,007 23,007 - Total segment revenues 35,419 11,671 76,131 2,256 125,477 23,007 102,470 Expenses External expenses 20,239 6,705 41,130 1,978 70,052 - 70,052 Inter-segment expenses 8,066 4,706 10,173 62 23,007 23,007 - Total segment expenses 28,305 11,411 51,303 2,040 93,059 23,007 70,052 Segment results 7,114 260 24,828 216 32,418 - 32,418 Other information Capital expenditures 10,007 4,172 11,321 901 26,401 - 26,401 Depreciation and amortization 2,708 1,203 14,531 92 18,534 - 18,534 Provision recognized in current period 560 297 148 5 1,010 - 1,010 Geographic information: 2016 2015 External revenues Indonesia 114,093 100,456 Foreign countries 2,240 2,014 Total 116,333 102,470 The revenue information above is based on the location of the customers. 2016 2015 Non-current operating assets Indonesia 115,216 105,361 Foreign countries 2,371 1,395 Total 117,587 106,756 Non-current operating assets for this purpose consist of property and equipment and intangible assets. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 99

33. TELECOMMUNICATIONS SERVICE TARIFFS

Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating telecommunications network andor services are determined by providers based on the tariff type, structure and with respect to the price cap formula set by the Government.

a. Fixed line telephone tariffs

The Government has issued a new adjustment tariff formula which is stipulated in the Decree No. 15PERM.KOMINFO42008 dated April 30, 2008 of the MoCI concerning “Mechanism to Determine Tariff of Basic Telephony Services Connected through Fixed Line Network”. This Decree replaced the previous Decree No. 09PERM.KOMINFO022006. Under the Decree, tariff structure for basic telephony services connected through fixed line network consists of the following:  Activation fee  Monthly subscription charges  Usage charges  Additional facilities fee.

b. Mobile cellular telephone tariffs

On April 7, 2008, the MoCI issued Decree No. 09PERM.KOMINFO042008 regarding “Mechanism to Determine Tariff of Telecommunication Services Connected through Mobile Cellular Network” which provides guidelines to determine cellular tariffs 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 tariffs of operating telecommunication services connected through mobile cellular network consist of the following:  Basic telephony services tariff  Roaming tariff, andor  Multimedia services tariff with the following traffic structure:  Activation fee  Monthly subscription charges  Usage charges  Additional facilities fee.

c. Interconnection tariffs

The Indonesian Telecommunication Regulatory Body “ITRB”, in its letter No. 262BRTIXII2011 dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost basis with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all telecommunication provider operators. Based on letter No.118KOMINFODJPPIPI.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 tariff effective 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 Offer “RIO” proposal to ITRB to be evaluated.