Cellular Services AR TELKOM 2014 ENG

MARKETING AND PROMOTION ASPECTS Distribution Channels The following are the primary distribution marketing channels for our products and services:

1. Plasa Telkom and GraPARI

are outlets that function as walk-in customer service points, where customers have access to the full range of Telkom and Telkomsel’s respective products and services, including billing, payment, subscription cancellation and promotion to complaint handling. As of December 31, 2014, we managed 572 Plasa Telkom outlets and 88 GraPARI outlets in Indonesia and one GraPARI in Hong Kong, and had an additional 321 GraPARI outlets which were managed by thirdparty business partners. Several of the GraPARI outlets operate on a 24 hour basis. We also operate 263 mobile GraPARI outlets which are sales points located in vehicles which can travel to reach customers across the country. to the MoCI Decree, the Government released Director General of Post and Telecommunication Decision Letter No.1152008 dated March 24, 2008, regarding “The Agreement on Network Lease Service Type Document, Network Lease Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease Service, and Provision Procedure of Network Lease Service in 2008 Owned by Dominant Network Lease Service Provider”, in conformity with our proposal. Tariff for other services The tariffs for satellite lease, telephony services and other multimedia services are determined by the service provider by taking into account the expenditures and market price. The Government only determines the tariff formula for basic telephony services. There is no stipulation for the tariff of other services. IMES tariffs In providing IME services, our New Economy Business, we work with a number of partners. These collaborations are based on considerations of capability, time to market and idea creation. Tariffs for our IME services are determined in agreement with these partners based on the scheme of cooperation between us and each respective partner. 116 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S

2. Contact centers

are call centers that support our customers’ ability to access certain of our products and services, including make billing enquiries, submit complaints, and access certain promotions and service features. We operate 24-hour contact center facilities in five cities, namely Medan, Jakarta, Bandung, Makassar and Surabaya. Inbound calls to our contact centers have generally been decreasing due to changes in methods used by the customers in seeking out product information, subscribing or submitting complaints, from voice calls to online requests on our websites.

3. Partnership Stores

Are extensions of our distribution channels, in cooperation with a variety of third party marketing outlets such as computer or electronic stores, banks, and others. To increase sales, we also use above and below the line marketing channels, to promote our services to certain parties and communities. We also continue to place advertisement in printed and electronic media and implement marketing methods such as point of sales broadcasting as well as promotion and sponsorship events. In line with shifting consumer behavior and lifestyles, we have also actively developed national scale partnerships with several partners such as Intel and Bank BTN. Through the partnership, we sell bundle- based products at our partners’ sales outlets.

4. Feet on The Street

Are sales agents that conduct direct marketing of our products, particularly for our IndiHome products, through door-to-door sales, open table discussions, exhibitions, product demonstrations, and other similar activities.

5. Authorized dealers and retail outlets

Are distribution outlets for a variety of telecommunication products such as Speedy Instant cards, starter packs, prepaid SIM cards and top-up vouchers. These dealers are non-exclusive, and they receive a discount on all of the products they receive. Retail outlets also include outlets jointly operated by us, Telkomsel and PT Pos Indonesia, as well as other outlets such as banks.

6. Account Management Teams

Are teams that manage relationships with our individual, business and corporate customers. We also provide a Tele Account Manager service to support customers or prospective business customers through inbound and outbound calls for pre-sales, sales and other customer services requirements.

7. Telkom Solution Houses

Are places where an enterprise customer can obtain information on a variety of TIMES solutions, products and services, and the latest technology. At Telkom Solution Houses, we provide free live demon for freesuch as IndiHome, Hotspot, PDN, IP-Phone, live demonstrations for commercial products such as video conferene, enterprise consultation and ecosystem business solutions for customized TIMES for corporations and simulated demonstrations such as e-Payment and VPN over GSM and Flexi.

8. SME Centers

These centers function as a communication center supported with advanced office facilities, a community center where our customers can interact and a commerce center specifically for e-Commerce solutions.

9. Website

Our website, www.telkom.co.id and www.telkomsel. com enables customers to access certain of our products and services. Available services include e-billing registration, collective billing registration and submission of complaints.

10. Social Media

We use social media, primarily Facebook and Twitter, to enable the customers to interact with us regarding our products and services. To increase sales, we also use above and below the line marketing channels, to promote our services to certain parties and communities 117 2014 Annual Report PT Telkom Indonesia Tbk Persero