TAXATION continued FS English Q1 2017 FINAL

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 67

26. 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 year ended December 31, 2016 and 2015 is as follows: 2017 2016 Profit before income tax 12,324 9,316 Add back consolidation eliminations 5,935 4,507 Consolidated profit before income tax and eliminations 17,719 13,823 Less: profit before income tax of the subsidiaries 10,932 8,683 Profit before income tax attributable to the Company 6,787 5,140 Less: income subject to final tax 98 50 6,689 4,990 Temporary differences: Provision for personnel expenses 236 523 Net periodic pension and other post-retirement benefits costs 59 51 Deferred installation fee 15 2 Depreciation and gain on sale of property and equipment 528 271 Provision for onerous contracts - 430 Finance leases 1 1 Provision for impairment and trade receivables written-off 374 255 Other provisions 40 32 Net temporary differences 167 509 Permanent differences: Employee benefits 54 60 Net periodic post-retirement health care benefit costs 76 45 Donations 37 18 Equity in net income of associates and subsidiaries 5,298 4,513 Others 38 302 Net permanent differences 5,093 4,088 Taxable income of the Company 1,763 1,411 Current corporate income tax expense 353 282 Final income tax expense 13 24 Total current income tax expense of the Company 366 306 Current income tax expense of the subsidiaries 2,625 2,301 Total current income tax expense 2,991 2,607 Tax Law No. 362008 with implementing rules under Government Regulation No. 562015 stipulates a reduction of 5 from the maximum rate applicable to qualifying listed companies, for those whose stocks are traded in the IDX which meet the prescribed criteria that the public owns 40 or more of the total fully paid and traded shares, and such shares are owned by at least 300 parties, with each party owning less than 5 of the total paid-up shares. These requirements must be met by a company for a period of 183 days in one tax year. The Company has met all of the required criteria; therefore, for the purpose of calculating income tax expense and liabilities for the financial reporting years ended December 31, 2014, 2015 and 2016, the Company has reduced the applicable tax rate by 5. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 68

26. TAXATION continued