Interconnection tariffs TELECOMMUNICATIONS SERVICE TARIFFS continued b. Mobile cellular telephone tariffs continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended Figures in tables are expressedin billions of Rupiah, unless otherwise stated 113

41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued

ii Radio Frequency Usage Based on the Decree No. 76 dated December 15, 2010 of the Government of the Republic of Indonesia, which amended Decree No. 7 dated January 16, 2009, the annual frequency usage fees for bandwidths of 800 Megahertz “MHz”, 900 MHz and 1800 MHz are determined using a formula set forth in the Decree. The Decree is applicable for 5 years unless further amended. As an implementation of the above Decree, the Company and Telkomsel paid the first, second and third year annual frequency usage fees in 2010, 2011 and 2012, respectively. Based on Decision Letters No. 881 dated September 10, 2013 and No. 884 dated September 10, 2013, the MoCI determined that the fourth year Y 4 , 2013, annual frequency usage fees of the Company and Telkomsel were Rp213 billion and Rp1,649 billion, respectively. The fees were paid in December 2013 Note 2i. On June 27, 2014, the Company signed a Conditional Business Transfer Agreement with Telkomsel for transferring Flexi business. In order to maximize its business opportunities from group synergy, the Company intended to restructure its Flexi business unit by ceasing the respective fixed wireless telecommunication network services and transferring it to Telkomsel Note 5. Based on Decision Letter No. 934 dated September 26, 2014, the MoCI approved the transfer of the Company’s frequency usage license on radio frequency spectrum of 800 MHz, specifically on spectrum of 880-887.5 MHz paired with 925-932.5 MHz, to Telkomsel, Telkomsel can use the radio frequency spectrum since the decision letter was issued. During the transition period, the Company is still able to use the radio frequency spectrum of 880-887.5 MHz paired with 925-932.5 MHz until December 31, 2014. Based on Decision Letters No. 940 dated September 26, 2014, MoCI determined that the fifth year Y5, 2014, annual frequency usage fee of Telkomsel was Rp2,198 billion. The fee includes frequency usage fee transferred from Company to Telkomsel and were paid in December 2014. iii Apple, Inc On January 9 and July 16, 2009, Telkomsel entered into agreements with Apple, Inc for the purchase of iPhone products, marketing it to customers using third parties PT Trikomsel OKE and PT Mitra Telekomunikasi Selular and providing cellular network services over a 3-year term. Subsequently, on July 16, 2012, Telkomsel replaced the agreements with a new agreement. Cumulative minimum iPhone units to be purchased up to June 2015 are at least 500,000 units. iv Future Minimum Lease Payments of Operating Lease The Group entered into non-cancelable lease agreements with both third and related parties. The lease agreements cover leased lines, telecommunication equipment and land and building with terms ranging from 1 to 10 years and with expiry dates between 2015 and 2024.