DlD Services AR TELKOM 2015 ENG.

172 PT Telkom Indonesia Persero Tbk December 3, 2007, “MoCI Decree No.432007”, which delayed the deadline for the implementation of three digit access code for DLD calls throughout all the area code in Indonesia until September 27, 2011. Pursuant to MoCI Decree No.432007, we opened our network to the “01X” three-digit DLD access service in Balikpapan by April 3, 2008. Since that date, our customers are able to make DLD calls from Balikpapan by irst dialing Indosat’s “011”. As stipulated in MoCI Regulation No.432007, we have provided a nation- wide network for three-digit access code for ixed and ixed wireless DLD with “01X” that can be used by Indosat or other licensed operator starting September 27, 2011. To date, no other licensed operators have submitted a request to us to connect their networks and enable DLD access. 6. IDD Services We received our IDD license in May 2004 and began ofering IDD ixed line services to customers in June 2004 using the “007” IDD access code. The Indosat IDD access code is “001”. Our December 2005 interconnection agreement with Indosat enables Indosat’s network customers to access our IDD services by dialing “007” and our network customers to access Indosat’s IDD services by dialing “001”.

7. Cellular

Cellular telephone service is provided in Indonesia on the radio frequency spectrum of 1.8 GHz DCS technology, 2.1 GHz UMTS technology and 900 MHz GSM and UMTS technology. The MoCI regulates the use and allocation of the radio frequency spectrum for mobile cellular networks. Telkomsel has obtained frequency allocation for cellular services on the 900 MHz, 1.8 GHz and 2.1 GHz frequency bands. The allocation of bandwidth in the 2.1 GHz frequency spectrum is regulated by: • MoCI Decree No.19KEPM.KOMINFO22006 dated February 14, 2006 regarding the Determination of Winner of IMT-2000 Mobile Cellular Operator Selection at 2.1 GHz Radio Frequency Band. • MoCI Decree No.268KEPM.KOMINFO92009 regarding the Determination of Additional Allocation of Radio Frequency Bandwidth Blocks, Tarifs, and Payment Scheme Radio Frequency Spectrum Right of Usage Fees for IMT-2000 Moble Cellular Operators at 2.1 GHz Radio Frequency Band. • MoCI Decree No.191 Year 2013 regarding the Determination of PT Telekomunikasi Selular as Winner in the Selection of Users of Additional Frequency Bandwidth at 2.1 GHz Radio Frequency Band for IMT- 2000 Moble Cellular Operators. The Minister of Communication and Information released his decree regarding the management of the 1,8 GHz radio frequency band on April 29, 2015, through Decree No.192015 on 1800 MHz Radio Frequency Bands Regulation for the Management of Cellular Mobile Networks, in which cellular mobile network providers on 1800 MHz radio frequency band must reallocate the use of radio frequency on 1800MHz radio frequency band by November 2015.

8. Interconnection

The Telecommunications Law expressly prohibits monopolistic and unfair business practices and requires network providers to allow users to access other users or obtain services from other networks by paying interconnection fees agreed upon by each network operator. Government Regulation No.522000 dated July 11, 2000 regarding Telecommunications Operations provides that interconnection charges between two or more network operators must be transparent, mutually agreed upon and fair. On February 8, 2006, the MoCI issued Regulation No.8 PERM.KOMINFO022006 on Interconnection “MoCI Regulation No.82006”, mandated a cost-based interconnection tarif scheme for all network and services operators replacing the previous revenue-sharing scheme. Under the new scheme, interconnection charges are determined by the network operator on which a call terminates based on a long-run incremental cost formula. MoCI Regulation No.82006 requires operators to submit to the ITRA annual RIO proposals containing proposed interconnection tarifs for the coming year. Operators are required to use the cost-based methodology in preparing RIO proposals, and the ITRA and MoCI are required to use the same methodology in evaluating the RIO proposals and approving interconnection tarifs.

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PT Telkom Indonesia Persero Tbk Pursuant to MoCI Regulation No.82006 and ITRA Letter No.246BRTIVIII2007 dated August 6, 2007, we submitted a RIO proposal to the ITRA in October 2007, which covered adjustments for operational, coniguration, technical and service oferings. In December 2007, we and all other network operators signed new interconnection agreements that superseded previous interconnection agreements between us and other network operators which also amended all interconnection agreements signed in December 2006. On February 5, 2008, the ITRA required that we and other operators begin implementing the cost-based interconnection tarif regime. On April 11, 2008, pursuant to Directorate General of Post and Telecommunication “DGPT” Decree No.2052008, the ITRA and the MoCI approved RIO proposals from all operators to replace previous interconnection agreements. The RIO approved in 2008 was efective until July 29, 2011 when new interconnection charges were implemented as stipulated in ITRA Letter No.227BRTIXII2010 dated December 31, 2010 regarding the Implementation of Interconnection Charges in 2011. This was the result of interconnection charges recalculation conducted in 2010 by MoCI that was agreed on by all operators and outlined in a Memorandum of Understanding. The results of this interconnection charges reform caused a slight decrease in interconnection costs. On December 12, 2011, the ITRA changed the SMS interconnection fee basis from a “Sender Keep All” basis to a cost basis interconnection fee calculation which required certain amendments to RIOs agreed upon in 2011. MoCI Regulation No.82006 stipulates that the RIO of telecommunications network operators generating operating revenue that is equal to or more than 25 of the combined revenues of all telecommunication operators that serve the same respective segment, must obtain ITRA’s approval, necessitating changes in our and Telkomsel’s RIOs which were approved on June 20, 2012. Up until the publishing of this report, no recalculation of interconnection fees for 2012 had been done as doing so would have been preceded by an evaluation on interconnection charges in 2011.

9. VoIP

In January 2007, the Government implemented new interconnection regulations and a ive-digit access code system for VoIP services pursuant to MoCI Decree No.06PM.KOMINFO52005. Under the Decree, the preix for VoIP, which was originally 01X, was changed to 010XY. On April 27, 2011, the MoCI issued Regulation No.14PERM.KOMINFO042011, as partly revoked by MoCI Regulation No.11 of 2014, which imposed quality control standards in relation to VoIP services and this became efective three months thereafter, to which we and other operators must adhere to.

10. IPTV

Several provisions in the MoCI Regulation No.11PERM. KOMINFO072010 “MoCI Regulation No.112010” regarding the Implementation of Internet Protocol Television IPTV Service has been amended by Regulation No.152014 regarding the Implementation of Internet Protocol Television IPTV Service that became the legal basis for the IPTV licensing and regulates the provision of IPTV services, including the rights and obligations of IPTV providers, technical standards, foreign ownership requirements and the use of domestic independent content providers. MoCI Regulation No.112010 recognizes IPTV as a convergence of telecommunications, broadcasting, multimedia and electronic transactions and provides that only a consortium comprising at least two Indonesian entities may be licensed as an IPTV provider. Referring to MOCI Regulation No.152014, the licenses that we needed, among others: a local ixed network license, mobile network or ixed closed network license, b operating internet accessISP license, and c broadcasting operation of subscription television broadcasting services institution license.