REVENUE-SHARING ARRANGEMENT Citibank N.A., Singapore

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 83

36. PERATING EXPENSES — PERSONNEL

O 2004 2005 As restated Salaries and related benefits 1,796,914 2,165,895 Vacation pay, incentives and other benefits 1,156,069 1,615,640 Early retirements 243,466 486,374 Net periodic post-retirement health care benefit cost Note 44 416,276 488,586 Net periodic pension cost Note 42 572,419 532,331 Employee income tax 523,787 856,451 Long service awards Note 43 36,861 201,878 Housing 103,459 113,673 Medical 12,190 18,019 Other employee benefits Note 42 11,510 5,954 Others 37,014 78,246 Total 4,909,965 6,563,047

37. PERATING EXPENSES - OPERATIONS, MAINTENANCE AND TELECOMMUNICATION

O SERVICES 2004 2005 Operations and maintenance 2,398,159 3,075,092 Concession fees 807,309 1,257,376 Cost of phone, SIM and RUIM cards 366,661 582,351 Electricity, gas and water 385,662 372,526 Vehicles and supporting facilities 181,737 217,217 Insurance 151,297 136,378 Leased lines 132,829 124,253 Travelling 42,213 33,455 Others 63,720 117,693 Total 4,529,587 5,916,341 The 2004 figures have been restated due to the adoption of PSAK 24R see Note 4a. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 84

38. OPERATING EXPENSES - GENERAL AND ADMINISTRATIVE

2004 2005 Professional fees 137,355 131,047 Collection expenses 358,957 379,056 Amortization of goodwill and other intangible assets Note 15 872,330 918,153 Training, education and recruitment 228,524 177,853 Travel 192,567 171,657 Security and screening 143,892 164,416 General and social contribution 111,838 204,326 Printing and stationery 80,972 50,190 Meetings 58,333 40,311 Provision for doubtful accounts and inventory obsolescence 357,695 488,973 Research and development 13,225 8,396 Others 44,159 29,573 Total 2,599,847 2,763,951

39. INCOME TAX

2004 2005

a. Prepaid taxes

The Company Refundable corporate income tax - overpayment 38,370 - 38,370 - Subsidiaries Corporate income tax 34,515 13,352 Value added tax 4,343 5,561 38,858 18,913 77,228 18,913