INVENTORIES continued FSTelkom30June10Eng

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010 SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated 42

10. LONG-TERM INVESTMENTS continued b. CSM

CSM is engaged in providing Very Small Aperture Terminal “VSAT”, network application services and consulting services on telecommunications technology and related facilities. As of June 30, 2009 and 2010, the carrying amount of the investment in CSM was equal to the Company’s share in the net assets of CSM.

c. PSN

PSN is engaged in providing satellite transponder leasing and satellite-based communication services in the Asia Pacific region. The Company’s share in losses in PSN has exceeded the carrying amount of its investment since 2001, accordingly, the investment value has been reduced to Rp.nil.

d. Scicom

Scicom is engaged in providing call center services in Malaysia. As of June 30, 2009, TII’s contributions amounted to US3.42 million equivalent to Rp.30,961 million, which represents or equivalent to 9.80 of TII’s total ownership in Scicom. In 2009, TII has purchased an additional 16,081,800 Scicom shares with transaction value amounting to US1.973 million equivalent to Rp.18,760 million. As a result, TII’s ownership in Scicom increased to 15.86. On February 3, 2010, TII has purchased additional 3,042,400 Scicom shares with a transaction value amounting to US0.42 million equivalent to Rp.3,905 million, as a result, TII’s ownership in Scicom increased to 17.01. On May 6, 2010 and June 16, 2010, TII has purchased additional 4,870,000 and 30,000,000 Scicom shares, respectively, with a transaction value amounting to US0.76 million equivalent to Rp.6,897 million and US5.79 million equivalent to Rp.53,556 million, respectively, as a result, TII’s ownership in Scicom increased to 29.85. As of the issuance date of the consolidated financial statements, TII has no significant influence on Scicom, therefore TII recorded the investment under cost method.

e. BMPL

BMPL Singapore, an associated entity of Telkomsel, is engaged in providing regional mobile services in the Asia Pacific region. As of June 30, 2009 and 2010, Telkomsel’s contributions which represent 10 ownership interest amounted to US2,200,000 equivalent to Rp.20,360 million.

f. BBT

BBT is engaged in providing fixed line telecommunication services at Batamindo Industrial Park in Muka Kuning, Batam Island and at Bintan Beach International Resort and Bintan Industrial Estate in Bintan Island.

g. Bangtelindo

Bangtelindo is primarily engaged in providing consultancy services on the installation and maintenance of telecommunications facilities.