Bond Issued Telin On May 19, 2015, Pachub Acquisition Co. On

161 PT Telkom Indonesia Persero Tbk Signiicant Diferences between ifaS indonesia and ifrS

1. land rights Based on PSAK, land rights is listed as a ixed asset and

is not amortized unless evidence exists to indicate that the extension or renewal of such land rights, most likely or deinitely, cannot be achieved. The cost to arrange the extension or legal renewal of land rights is recognized as an intangible asset and shall be amortized for as long as the legal age of such rights or for the duration of the economic life of the land, whichever one is briefer. Based on IFRS, land rights is listed as a inance lease and is presented as being part of ixed assets. The land right is amortized for the duration of the lease period.

2. transaction with related parties Based on Bapepam-LK Regulation No. VIII.G.7 regarding

the Presentation and Disclosure of the Financial Statements of Stock Issuers or Public Companies, related entities of the government are entities that are controlled, jointly controlled or are inluenced by the government. The term ‘government’ in this instance refers to the Minister of Finance or Regional Governments that are shareholders of an entity. Based on IFRS, related entities of the government are entities that are controlled, jointly controlled, or inluenced by the government. The term ‘government’ in this instance refers to the government, government institutions and similar bodies, be it local, national or international. operational overvieW netWorK infraStrUCtUre anD DevelopMent We believe that our achievement in 2015 was the result of our consistency in carrying out three main focus strategies, namely maintaining double digit growth for Telkomsel, the Indonesia Digital Network “IDN” program for “Driving the Digital Business” and international expansion “Stretch and Expand International Business”. In connection with our previous “Great to Break 100300” strategy and target to reach Rp100 trillion in revenues and Rp300 trillion in market capitalization in 2015, our Directorate of Network, Information and Technology, and Solution had established a systematic framework derived from our strategic plans and key initiatives. We’ve also made various strategic plans to support our vision to “Be the King of Digital in the Region”. We are committed to continuing the development of our telecommunication infrastructure so as to further strengthen our Company in Indonesia and globally. In line with our objectives, we classify our network infrastructure into two categories, namely, our international networks infrastructure, to support the our international expansion program, and our national network infrastructure, which supports the IDN program. international networks We operate international gateways in Batam, Jakarta, and Surabaya to route outgoing and incoming calls on our IDD service “007”. We curreny own or have interests in global submarine cable infrastructure that connects the continents of Europe, Asia, and America through submarine cable system consortiums for the Batam Singapore Cable System BSCS, Dumai Malacca Cable System DMCS, Asia America Gateway AAG, Singapore Japan Cable System SJC, Southeast Asia-United States SEA-US and Indonesia Global Gateway IGG which will soon be constructed. We, through our subsidiary Telin, are also a consortium member in the South East Asia – Middle East -Western Europe 5 “SEA-ME-WE 5” submarine cable system and the Southeast Asia – United States “SEA – USA” submarine cable system. SEA-ME-WE5 is a submarine cable system with a length of approximatelly 20,000 km stretching from Dumai, Indonesia to several countries in Southeast Asia, France and Italy, with direct connection from Indonesia to Europe. This submarine cable system has a capacity of 24 tera bits per second using 100 Gb technology. Construction began in September 2014 and the cable system is expected to begin carrying commercial traic in the fourth quarter of 2016. Telkom and NEC completed the landing of the SEA-ME-WE 5 submarine cable in Medan, North Sumatra on January 25, 2016. SEA–USA is submarine cable system with a length of approximatelly 15,000 km connecting Manado Indonesia, Davao Philippines, Piti Guam, Oahu Hawaii, United States, and Los Angeles California, United States. Construction began in March 2015 and the cable system is expected to begin carrying commercial traic in the fourth quarter of 2016. To support international services for both voice and data, Telin operates 25 points of presence “POP” in various 162 PT Telkom Indonesia Persero Tbk parts of the world, including in Asia Dubai, Singapore, Hong Kong, Malaysia, Tokyo and others, Europe London, Frankfurt and Amsterdam and the USA Ashburn, New York, Los Angeles, San Jose and Palo Alto. We plan to continue with the development of our international network infrastructure to support our international expansion strategy and vision to be “The King of Digital in the Region”. Is the plan to focus the international network infrastructure expansion in the 10 countries Singapore, Hong Kong and Macau, Timor Leste, Australia, Myanmar, Malaysia and Brunei, Taiwan, U.S.A, Kingdom of Saudi Arabia KSA. National Network We believe that in order to achieve our vision to become “The King of Digital”, infrastructure development and the provision of connectivity are very important, hence, we will continue to actualize digitization in Indonesia through the three IDN components, namely id-Access, id-Ring and id-Con. We continue to pursue development of our network infrastructure to ofer a more eicient and cost-competitive serviceas part of the Government’s Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development “MP3EI” in line with our transformation into a TIMES provider under our IDN program. In the framework of developing high-quality, eicient and competitive infrastructure in terms of the costs in delivery services, we continue to pursue the development and improvement of our network infrastructure, known as Collaborative Network Optimization Project which was built and operated by Telkom Group. Our IDN program involves the following three program developments: 1. id-Convergence “id-Con”: convergence of the node service network infrastructure into a multi-service and multi-screen integrated NGN. id-Con is a strategic initiative that focuses on providing a design, development and delivery of TIMES services platform converging to Telkom Group customers. This converged services platform is leveraged on our data center facilities, which has reached the Tier-4 design category and is supported by a cloud management platform to ensure the reliability and scalability of the TIMES services. 2. id-Ring: development of our transmission network infrastructure into an IP-based and optical backbone network. In terms of broadband infrastructure id-Ring, we are actively developing infrastructure through the Indonesia Digital Network program. To date, wee have built iber optic cable infrastructure totalling 81,895 km in length from Aceh to Papua, including the Sulawesi Maluku Papua Cable System “SMPCS”, which will provide a positive impact on equitable access to broadband information and communication, with the more similar quality in all regions of Indonesia. 3. id-Access: development of our customer access network infrastructure into a high speed broadband access network through iber optic and Wi-Fi networks. We are currently focusing on developing new products for our IndiHome service, which provides “Triple Play” services consisting primarily of internet on iber or high speed internet, home phone and IPTV UseeTV Cable. IndiHome also provides additional or add-on features such as IndiHome Telephone Mania, IndiHome Global Call, MelOn, IndiHome View and Trend Micro Security System. Fixed Wireline Network As of December 31, 2015, we managed 10.3 million ixed wireline ix voice connections. The following table sets forth data related to our ixed wireline network as of the dates indicated.