TRADE RECEIVABLES continued FS30Sep08EngFinal1

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 36

7. INVENTORIES continued

Certain inventories held by a certain subsidiary have been insured against all risk industrial with PT Advis Terapan Proteksindo, an insurance company in association with ATP Insurance, with total sum insured as of September 30, 2008 amounted to Rp.5,557 million. Management believes that the insurance coverage is adequate.

8. PREPAID EXPENSES 2007

2008 Rental 2,072,300 1,397,238 Salaries 314,691 312,552 Insurance 29,723 106,217 Telephone directory issuance costs 2,914 2,578 Others 10,739 42,348 Total 2,430,367 1,860,933 Refer to Note 44 for details of related party transactions.

9. RESTRICTED TIME DEPOSITS

This account consists of the Company’s time deposits of US0.072 million equivalent to Rp.659 million and Rp.5,530 million as of September 30, 2007 and US0.36 million equivalent to Rp.3,372 million and Rp.10,502 million as of September 30, 2008, Infomedia’s time deposit of Rp.2,271 million and Rp.5,170 million as of September 30, 2007 and 2008, respectively, and TII’s time deposit of Rp.2,000 million as of September 30, 2008, which were pledged as collateral for bank guarantees to Bank Mandiri Note 44.

10. LONG-TERM INVESTMENTS

2007 Percentage of Beginning Share of Translation Ending ownership balance Addition net income adjustment balance Equity method: CSM 25.00 53,114 - 2,339 355 55,808 Patrakom 40.00 26,007 - 4,580 - 30,587 PSN 22.38 - - - - - 79,121 - 6,919 355 86,395 Cost method: Bridge Mobile Pte. Ltd. “BMPL” 10.00 9,290 5,453 - - 14,743 PT Batam Bintan Telekomunikasi “BBT” 5.00 587 - - - 587 PT Pembangunan Telekomunikasi Indonesia “Bangtelindo” 3.18 199 - - - 199 10,076 5,453 - - 15,529 89,197 5,453 6,919 355 101,924 PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008, AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated 37

10. LONG-TERM INVESTMENTS continued

2008 Percentage of Beginning Share of Translation Ending ownership balance Addition Dividend net income adjustment balance Equity method: CSM 25.00 57,240 - - 1,744 1,212 57,772 Patrakom 40.00 32,892 - 1,944 732 - 31,680 PSN 22.38 - - - - - - 90,132 - 1,944 2,476 1,212 89,452 Cost method: BMPL 10.00 20,360 - - - - 20,360 BBT 5.00 587 - - - - 587 Bangtelindo 2.11 199 - - - - 199 Scicom MSC Berhad “Scicom” 9.81 2,712 28,249 - - - 30,961 23,858 28,249 - - - 52,107 113,990 28,249 1,944 2,476 1,212 141,559 a. 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 September 30, 2007 and 2008, the carrying amount of the investment in CSM was equal to the Company’s share in the net assets of CSM.

b. Patrakom

Patrakom is engaged in providing satellite communication system services, related services and facilities to companies in the petroleum industry. The increase of ownership in Patrakom in 2007 represents an adjustment arising from the difference between the book value and the initial investment was made in 2005. Pursuant to the AGM of Stockholders as stated in notarial deed No. 235 of Sutjipto, S.H. M.Kn. dated April 30, 2008, Patrakom’s stockholders approved the distribution of cash dividends for 2007 amounting to Rp.4,859 million and the appropriation of Rp.607 million for general reserves. The Company’s share of the dividend amounting to Rp.1,944 million. As of September 30, 2007 and 2008, the carrying amount of investment in Patrakom was approximate to the Company’s share in the net assets of Patrakom.

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.