Transactions with Related Parties

PT TRIKOMSEL OKE Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2009 and 2008 Expressed in Rupiah Unless Otherwise Stated 10

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued i.

Prepaid Expenses Prepaid expenses are charged to operations over the periods benefited using the straight-line method.

j. Fixed Assets

Direct Ownership Effective January 1, 2008, the Company has applied SFAS No. 16 Revised 2007, “Fixed Assets”, which supersedes SFAS No. 16 1994, “Fixed Assets and Other Assets”, and SFAS No. 17 1994, “Accounting for Depreciation”, whereby the Company and Subsidiaries have chosen the cost model for their fixed assets measurement basis. Fixed assets are stated at cost less accumulated depreciation and impairment losses if any. Such cost includes the cost of replacing part of the fixed assets when that cost is incurred, if the recognition criteria are met. Likewise, when a major repair is performed, its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied. All other repairs and maintenance costs that do not meet the recognition criteria are recognized in the consolidated statements of income as incurred. Depreciation is computed as follows: Type of Fixed Assets Method Estimated Useful Lives Years Rate Building Straight-line 20 5 Office equipment Double-declining 4 and 8 50 and 25 Vehicle Double-declining 8 25 An item of fixed assets is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset calculated as the difference between the net disposal proceeds and the carrying amount of the asset is included in the consolidated statement of income in the year the asset is derecognized. The asset’s residual values, useful lives and methods of depreciation are reviewed, and adjusted prospectively if appropriate, at each financial year end. Leases Effective January 1, 2008, SFAS No. 30 Revised 2007, “Leases”. Based on SFAS No. 30 Revised 2007, the determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception date and whether the fulfillment of the arrangement is dependent on the use of a specific asset and the arrangement conveys a right to use the asset. Under this revised SFAS, leases that transfer substantially to the lessee all the risks and rewards incidental to ownership of the leased item are classified as finance leases. Moreover, leases which do not transfer substantially all the risks and rewards incidental to ownership of the leased item are classified as operating leases.