6-K 1 u92336e6vk.htm PT TELEKOMUNIKASI INDONESIA

PT Telekomunikasi Indonesia

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

For the month of May, 2004

Perusahaan Perseroan (Persero) PT TELEKOMUNIKASI INDONESIA

(Translation of registrant’s name into English)

Jalan Japati No. 1 Bandung-40133 INDONESIA

(Address of principal executive office)

[Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F Form 20-F þ  Form 40-F o

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 Yes o   No þ

[If “yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

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SIGNATURES

Consolidated Net Income

CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENT OF INCOME

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereunto duly authorized.

Perusahaan Perseroan (Persero)

PT TELEKOMUNIKASI INDONESIA

(Registrant)

Date May 4, 2004				By  /s/ Dina Arifani
				(Signature)
				Dina Arifani
				Acting Head of Investor Relation Unit

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		INFO MEMO-Q1/2004 (Unaudited)
		No.: 200/PR000/UHI/2004
		Date : May 4, 2004

This document contains certain financial conditions and results of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements, by their nature, involve risk and uncertainty that could cause actual results and development to differ materially from those expressed or implied in these statements. Data and information contained herewith are presented based on the Company’s un-audited Financial Statement for the First Quarter of Year 2004 as submitted to the Indonesian Capital Market Authority (BAPEPAM) and the Company is currently still awaiting the finalization of its audit of the 2003 financial statements. TELKOM do not guarantee that any action, which should have been taken in reliance on this document will bring specific results as expected.

Tickers:

•		NYSE : TLK
•		LSE : TKID
•		JSX : TLKM

Divisions:

•		Telkom Regions: I, II, III, V, VI
•		KSO Regions : IV, VII

Shares in issues:

10,079,999,639 shares

Major Shareholders:

•		Govt. of Indonesia 51.19%
•		Public 48.81%

Conversion Rates (US$ 1.00)

2004 =Rp. 8,565.00 (March 31,'04)
2003 =Rp. 8,720.00 (April 23, '03)

Stock Performance Q1/04

(JCI : Jakarta Composite Index)

Investor Relation Dept.
PT. TELKOM
Grha Citra Caraka
Jl. Gatot Subroto Kav 52, 5^th Floor
Jakarta 12710
Phone : 62 21 5215109
Fax : 62 21 5220500
Email : investor@telkom.co.id
Website : http//www.telkom.co.id

FINANCIAL HIGHLIGHTS (consolidated)

(In billions Rp)

		Q1/ 2003*)				Q1/ 2004**)				Growth
Key indicators		(As restated)				(Unaudited)				(%)
Operating Revenues			5,992				7,710				29
Operating Expenses			3,169				4,488				42
Operating Income			2,824				3,222				14
Net Income			1,649				1,758				7
EBITDA			3,952				4,848				23
Net Income per share (EPS-in Rp)			163.6				174.4				7
Net Income per ADS - in Rp			3,271.5				3,488.9				7

*		) For Q1/2003, six subsidiaries were consolidated within the Company’s Consolidated Financial Statements namely Telkomsel (65%), Dayamitra (90.32%,), Infomedia Nusantara (51%), Indonusa (57.50%), Pro Infokom (51%),Graha Sarana Duta (99.99%).
**		) For Q1/2004, ten subsidiaries were consolidated within the Company’s Consolidated Financial Statements namely: Telkomsel (65%), Infomedia (51%), Indonusa (90.39%), Graha Sarana Duta (99.99%), Dayamitra (90.32%,), Pramindo Ikat Nusantara (100%), Aria West International (100%), Napsindo (60%), Metra (99.99%), Pro Infokom (51%).

• Increase of Operating Revenues

Total consolidated Operating Revenues grew by 29% to Rp. 7,710 billion. The main contributors to the growth of Operating Revenues were generated by the growth of Data and Internet (74%), Interconnection (41%) and Cellular (36%) and Fixed line (29%). The growth of fixed line revenues were contributed by pulse production growth, and consolidation of Regional Division III and IV.

• Increase of Operating Expenses

Total consolidated Operating Expenses grew by 42% to Rp.4,488 billion. The main contributors to the growth of Operating Expense were resulted from the consolidation of KSO III and KSO IV which affected the growth of Depreciation (45%), General and Administrative Expense (44%), and Personnel Expense (39%). In addition, the increase of marketing expense in Telkomsel also contributed to the increase of the consolidated operating expense.

• Increase of Operating Income

Total Operating Income increased by 14% to Rp. 3,222 billion.

• Increase of Net Income

For the first quarter of 2004 the Company reported Net Income of Rp.1,758 billion, representing an increase of 7% compared to figure of the comparable period of 2003.

• Strong growth of Line in Service (Fixed Wireline and Fixed Wireless)

TELKOM recorded 8.72 million fixed lines in service, (including 421.6 thousands of fixed wireless) which grew by 12%, and consisted of 7.2 million lines in TELKOM Regions and 1.5 million lines in KSO Regions. The main contributors of the line in service among others are contributed by the growth from TELKOM Regions-VI (18.22.%)and by the introduction of TelkomFlexi service since the second quarter of 2003.

• Robust growth in Telkomsel’s subscribers

As of March 31, 2004 Telkomsel recorded 10.74 million subscribers which grew by 63% compared to the comparable period of 2003. The total additional subscribers were 1.15 million which was 96% higher than number of subscribers added during the first quarter year 2003.

• Increase of Telkomsel’s Net Income

For the first quarter of 2004, Telkomsel reported Net Income of Rp.1,228 billion, representing an increase of 40% compared to figure of the comparable period of 2003.

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PT. TELEKOMUNIKASI INDONESIA, Tbk.
ANNOUNCEMENT FOR THE FIRST QUARTER 2004 RESULTS
Consolidated Net Income for the First Quarter 2004
was Rp 1,758 Trillion (or increased by 7%)

Jakarta, May 4, 2004 - PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), today announced its unaudited consolidated financial statements and operational results for the first quarter 2004. All figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP).

BUSINESS HIGHLIGHTS

OPERATING REVENUES

The 28.7% growth of Operating Revenues was mainly contributed by:

a.		Fixed Phone Revenues which grew by 28.6% amounted to Rp.2.58 trillion whereas one of the reason was caused by 12% of subscribers growth and the impact of consolidation of KSO-III and IV.
b.		Cellular Revenues which grew by 36.3%, amounted to Rp. 2.45 trillion as a result of the 72% growth of prepaid subscribers.
c.		Interconnection Revenues which grew by 41%, amounted to Rp. 1.34 trillion mainly driven by the growing of traffic increase from cellular operators
d.		Data and Internet Revenues which grew by 74.1%, amounted to Rp. 1.00 trillion which was mainly contributed by SMS Revenues, VoIP and Multimediaamounted to Rp 748.6 billion, Rp.88.5 billion, and Rp.172.2 billion respectively.

OPERATING EXPENSES

The 41.6% growth in Operating Expenses was mainly contributed by:

a.		Personnel Expenses which grew by 39.3%, or amounted to Rp.1,384 billion.mainly due to the significant increase of Net Periodic Pension Cost as result of the changing of discount rate on pension cost from 13% to 11%. Additionally, the consolidation of KSO III and KSO IV affected the increase in Vacation Pay, Incentives and Other Benefit (82%), Long Service Award (82%), and Medical Expenses (60%) which also contributed to the increase of Personel Expense.
b.		Operation, Maintenance & Telecommunications Services Expenses which grew by 33.7% or amounted to Rp.955 billion. mainly contributed bythe 34% growth in Telkomsel’s Operation and Maintenance Expenses and consolidation of Regional Division III and IV.
c.		General and Administrative which grew by 44.2% or amounted to Rp.538.3 billion mainly caused by 50% increase of Professional Fees and 48% of Training and Recruitment Expenses.
d.		Marketing Expenses which grew by 79.8% or amounted to Rp.166 billion caused by a significant 251% increase in Telkomsel’s Marketing and Selling Expense and increase in Advertising and Promotion Expenses for the introduction of TELKOM’s new products .
e.		Depreciation and Amortization which grew by 45.2% or amounted to Rp.1,444 billion caused by the growth of new assets and consolidation of new subsidiaries (PT. AWI, Metra and Napsindo), KSO III and KSO IV.

FIXED-LINE IN SERVICE (INCLUDING FIXED WIRELESS)

As of March 31, 2004, TELKOM and all KSO Units recorded 8.72 million fixed lines in service, consisting of 7.2 million lines in service in TELKOM Regions, while 1.5 million lines in service were in KSO Regions.

Net additional fixed wire line lines in service during the first quarter 2004 were 46,670 lines, which was 38% lower than the figure of the comparable period of 2003

As of March 31, 2004, the subscriber-mix consists of 22.9% business, 76.9% residential and 0.18% social subscribers.

FIXED WIRELESS CDMA SERVICES

At the end of first quarter 2004, the amount of TELKOMFlexi subscribers in 43 major cities in Indonesia were as follow:

				As of
		Unit		March 31, 2004
Customer Based (sales)
- Postpaid
ESN		Subscribers			281,398
Classy		Subscribers			63,881
- Prepaid (Trendy)		Subscribers			329,055
Total sales *)		Subscribers			674,334
ARPU/month
- Postpaid		Rp			182,676
- Prepaid		Rp			32,329
Blended		Rp			152,543
Network Data
- BTS		Unit			412
- Home Location Register (HLR)		Subscribers			941,950

*) Subscribers plus sales on starter pack

CELLULAR SERVICES (TELKOMSEL)

As of March 31, 2004, the number of active cellular subscribers of TELKOM associated companies were 10,749,081.The breakdown for each operator is as follows:

Operator, and
TELKOM’s %										Growth
Of ownership		Q1/2003				Q1/2004				(%)
TELKOMSEL (65%)			6,6600,468				10,742,666				63	%
MOBISEL (6.40%)			6,415				6,415				0	%

Telkomsel held approximately 52 % market share of cellular market in Indonesia.

DATA AND INTERNET SERVICES

As of March 31, 2004, total usage access of TELKOMNet Instan was 8,976 million minutes or grew by 27% compared to the figure of the comparable period of year 2003. Meanwhile as of March 31, 2004, TELKOMSave and TELKOMGlobal usage access was 3,547 million minutes and 17,404 million minutes respectively, or grew 117% and 58% respectively.

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CAPITAL EXPENDITURE (CAPEX)

TELKOM (as single entity)

As of March 31, 2004, the company has spent Rp.5,019 billion for its CAPEX during the first quarter of year 2004, consist of:

a.		Rp.642.7 billion for Infrastructure (CDMA Rp.64.9 billion, Non CDMA Rp.577.8 billion);
b.		Rp. 7 billion for Supporting (CDMA Rp 1.7 billion, Non CDMA Rp 5.3 billion)
c.		Rp.4,369 billion for long term investment in subsidiaries which related to KSO resolutions.

TELKOMSEL’s CAPEX

During the first quarter of year 2004, Telkomsel invested Rp. 1,149 billion (US$ 135 million) for network infrastructures and other investments. A number of 298 new Base Transceiver Stations (BTS) and 2,652 Transmitting & Receiving Exchanges (TRXs) were installed and 1,340,000 subscribers capacity were added to the switching capacity (HLR). Overall network capacity as per end of March 2004 was approximately 12 million.

CONSOLIDATED DEBT

As of March 31, 2004, the breakdown of debt portfolio (short-term and long-term) in original currencies and Rupiah equivalents was as follows:

						Original
						Currencies
						(millions
						except IDR in				Rupiah Equivalent
Currencies		Years				billions)				(billions)				%
IDR/Rupiah			2003				4,631.13				4,631.13				39.22
			2004				4,089.85				4,089.85				28.70
US Dollar			2003				631.03				5,618.54				47.58
			2004				915.05				7,839.80				55.02
Japanese Yen			2003				17,978.37				1,346.49				11.40
			2004				17,429.46				1,441.38				10.12
Euro			2003				21.89				212.02				1.80
			2004				83.67				877.25				6.16
Total			2003								11,808.18				100.00
			2004								14,248.27				100.00

As of March 31, 2004, 28.70% of the total consolidated debt portfolio was denominated in Rupiah and 71.30% was denominated in foreign currencies, whereas in the same period of 2003, 39.22% of TELKOM’s debt portfolio was denominated in Rupiah and 60.78% was in foreign currencies.

TELKOM’s DEBTs (as single entity)

The breakdown of TELKOM portfolio (unconsolidated short-term and long-term) as of March 31, 2004 was as follows:

						Original
						Currencies				Rupiah
						(millions				Equivalent
Currencies		Years				except IDR in billions)				(billions)				%
IDR/Rupiah			2003				4,621.98				4,621.98				46.41
			2004				4,078.19				4,078.19				33.19
US Dollar			2003				424.26				3,778.92				37.94
			2004				768.42				6,581.48				53.57
Japanese Yen			2003				17,978.37				1,346.49				13.52
			2004				17,429.46				1,441.38				11.73
Euro			2003				21.89				212.02				2.13
			2004				17.64				184,81				1.50
Total			2003								9,959.41				100.00
			2004								12,285.86				100.00

As of March 31, 2004, 33.19% of loan portfolio was denominated in Rupiah and 66.81% was denominated in foreign currencies, whereas in the same period of 2003, 46.41% was denominated in Rupiah and 53.59% was in foreign currencies.

TELKOM hedges its foreign currencies exposures through time deposit placement, mainly in US Dollar. As of March 31, 2004, the Company’s deposit was US$ 16.6 million, covering approximately 4.9% of all obligations in foreign currencies from April 1, 2004 to March 31, 2005.

HUMAN RESOURCES

As of March 31, 2004, TELKOM’s (as single entity) total employees were 30,366 persons consisting of 24,179 persons in TELKOM Regions and 6,187 persons in the KSO Regions. During first of quarter 2004, a number of 382 employees have participated in the early retirement program.

Productivity per employee as measured by the number of fixed lines in service per employee as of March 31, 2004 was 248 while as of March 31, 2003 was 186.

RECENT DEVELOPMENTS

TELKOM FULLY CONTROL OPERATIONS IN REGIONAL DIVISION IV

On 20 January 2004 TELKOM entered into an agreement with PT Mitra Global Telekomunikasi Indonesia (“MGTI”) to amend and restate the KSO Agreement which they had originally signed in 1995 in Regional Division IV — Central Java & Yogyakarta. Under the amended KSO Agreement, for the remaining KSO period, which continues until 31 December 2010, Regional Division IV will operate under the management, supervision, control and responsibility of TELKOM. During this period, TELKOM will be entitled at its sole discretion and expense to construct new telecommunication facilities in Regional Division IV. MGTI will receive a fixed monthly payment drawn from revenues generated by Regional Division IV operations in the amount of US$.5.4 million per month in 2004 up to US$ 6.8 million per month in 2010. After payment of the fixed monthly payment and other operating expenses, TELKOM will be entitled to the balance of the KSO revenues in Regional Division IV. MGTI new shareholders consist of Alberta Telecommunications (99.99%) and Alberta Capital Partners Ltd. (0.01%).

TELKOM APPOINTED KPMG AS AUDITOR FOR THE YEAR 2003

On March 4, 2004 – PT Telekomunikasi Indonesia Tbk (TELKOM) appointed KAP Siddharta, Siddharta & Widjaja, member firm of KPMG as its independent auditor for the 2003.

RESULT OF THE EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS

On March 10, 2004 TELKOM held an Extraordinary General Meeting of Shareholders, which approved and resolved among other things are:

1.		Replacement of the Annual Report and Consolidated Financial Statement for the financial year of 2002.
2.		The restatement of the Audited Consolidated Financial Statements for the year 2000 and 2001.

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3. The redetermination for the allocation of the Company’s Consolidated Net Income for the year 2000 in the amount of Rp.2.775.004.509.812,- including an amount of Rp.470.992.590.436,- which is not a non-distributable object since it is not originating from the Company’s operation. Therefore the recognized consolidated Net Income to be distributed is Rp.2.304.011.919.376,- with the following allocation :

a.		5.51% or Rp.126.950.524.690,- for reserves fund;
b.		38.57% or Rp.888.653.672.827,- for cash dividend;
c.		55.92% or Rp.1.288.407.721.859,- for Retained Earnings for the Company’s Business Development

4. The redetermination for the allocation of the Company’s Consolidated Net Income for the year 2001 in the amount of Rp.4.068.391.123.249,- as follows :

a.		10.45% or Rp.425.011.024.148,- for reserves fund;
b.		52.23% or Rp.2.125.055.120.741,- for cash dividend;
c.		37.32% or Rp.1.518.324.978.360,- for Retained Earnings for the Company’s Business Development

5. The redetermination for the allocation of the Company’s Consolidated Net Income for the year 2002 in the amount of Rp.8.039.709.422.626,- as follows:

a.		10.12% or Rp.813.664.218.470,- for reserves fund;
b.		0.26% or Rp.20.863.185.089,- for environment development fund;
c.		41.52% or Rp.3.338.109.614.234,- for cash dividend;
d.		48.10% or Rp.3.867.072.414.833,- for Retained Earnings for the Company’s Business Development

6. The new composition of the member of the Board of Commissioner of the Company until 2006 AGM.

President Commissioner		: Mr. Tanri Abeng
Commissioner		: Mr. Gatot Trihargo
Commissioner		: Mr. Anggito Abimanyu
Independent Commissioner		: Mr. Arif Arryman
Independent Commissioner		: Mr. P. Sartono

7. The new composition of the member of the Board of Director of the Company until the remaining terms close of 2005 are as follows:

President Director		: Mr. Kristiono
Director of Finance		: Mr. Rinaldi Firmansyah
Director of Telecommunication Network Business		: Mr. Abdul Haris
Director of Telecommunication Services Business		: Mr. Suryatin Setiawan
Director of Human Resources and Supporting Business		: Mr. Woeryanto Soeradji

TELKOM OWNS 100% SHARES OF PT PRAMINDO IKAT NUSANTARA

On March 15, 2004, TELKOM has completed the payment for the call option of TELKOM’s promissory notes which was issued as a result of the buy-out of PT Pramindo Ikat Nusantara (Pramindo), TELKOM’s KSO Partner in Division I Sumatra pursuant to the Sale and Purchase Agreement signed by TELKOM and the shareholders of Pramindo on April 1, 2002. Currently TELKOM owns 100% of the issued and fully paid shares of Pramindo.

MoC DECREE ON THE TELECOMMUNICATION SECTOR RESTRUCTURING

On March 30, 2004 Minister of Communication announced telecommunication restructuring, among other are as follows:

1. Compensation for early termination of exclusive rights
The Goverment shall pay to TELKOM (including its KSO Partners) an amount of Rp.478 billion after tax and Indosat shall pay to the Government an amount of Rp.178 billion after tax. The payment of compensation to TELKOM shall be made gradually from the “on top” (above allocated ceiling) fund of the State Budget for the Ministry of Communications after approval by Parliament.

2. Interconnection
Cost-based interconnection fees shall be applicable as from January 1, 2005.

3. Establishment of Telecommunication Traffic Clearing System (SKTT)
The Government established SKTT as the main tool for handling all interconnection matters.

4. Rebalancing Tariff
In accordance to the Governments new policy in tariff rebalancing, TELKOM has` adjusted the amount of tariff with the following rebalancing structure:

1)		Local charges increase by an average of 28.2%
2)		Domestic Long Distance charges decrease by an average of 10%, except during peak hours (7am — 8pm) which decrease by 20%.
3)		Monthly subscription charges increase by an average range of 12% - 25% depending upon its customer segment.

     The current tariffs effective on April 1, 2004, are as follows:

a) Fixed Wireline

1) Monthly Charges:

		Business				Residential				Social
		(Rp)				(Rp)				(Rp)
Monthly			38,400 -				20,600 -				12,500 -
Subscription			57,600				32,600				18,500

2) Usage Charges:

		Price per Per Pulse		Pulse Duration
		(Rp)		Peak		Off Peak
Local
Up to 20 km		250		2 min		3 min
Over 20 km		250		1.5 min		2 min

Domestic Long-distance		Price Per Minute (Rp)		Duration
0-20 km		83 - 122		1 minute
20-30 km		122 - 163		1 minute
30-200 km		325 – 1,290		6 sec
200-500 km		460 – 1,815		6 sec
Over 500 km		570 – 2,270		6 sec

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b) CDMA Fixed Wireless

Tariffs charged to CDMA fixed wireless subscribers are reported as fixed-line revenues. TELKOM offers both postpaid and prepaid fixed wireless services. Postpaid subscribers pay a one-time activation charge of Rp.25,000 and a monthly charge of Rp.30,000. Usage charges for postpaid subscribers as of April 1, 2004 are as follows:

		Price per Per Pulse				Pulse Duration
		(Rp)				Peak				Off Peak
Local			250			1.5 min				2 min

Domestic Long Distance		Price Per Minute (Rp)		Duration
30-200 km		325 — 1,290		6 sec
0-500 km		460 — 1,815		6 sec
Over 500 km		570 — 2,270		6 sec

		5. Fixed Wireless Acess FWA is included in the provision of local fixed network services with limited mobility.
6.		Universal Service Obligation Funds for USO development are taken from contributions given by telecommunication operators in the amount of 0.75% of their gross revenues.
7.		IDD License TELKOM is given the right to use access code of 007 for operating international telephone network

/s/ Adek Julianwar

ADEK JULIANWAR

Corporate Secretary

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Table 1
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA, Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (UNAUDITED)
March 31, 2003 and 2004
(Figures in tble are presented in millions of Indonesian Rupiah and Thousands of United States Dollar)

		Consolidated												Unconsol
		2003				2004								2004
		As restated
		Rp				Rp				US$				Rp
ASSETS
CURRENT ASSETS
Cash and cash equivalents			6,201,912				5,168,915				603,493				2,201,545
Short-term investments - net			10,000				—				—				—
Trade accounts receivables
Related parties - net of allowance for doubful accounts of Rp 111,780 million in 2003 and Rp 82,804 million in 2004			1,080,240				877,855				102,493				1,135,210
Third parties - net of allowance for doubful accounts of Rp 344,577 million in 2003 and Rp 413,726 million in 2004			1,938,364				2,803,208				327,286				1,854,061
Other account receivables - net of allowance for doubful accounts Rp 25,575 million in 2003 and Rp 165,737 million in 2004			157,666				335,305				39,148				2,101,592
Inventories - net of allowance for obsolescence of Rp 51,002 million in 2003 and Rp. 40,414 million in 2004			155,462				177,598				20,735				77,727
Prepaid expenses			555,564				737,839				86,146				403,559
Prepaid taxes			—				—				—				—
Other current Assets			119,910				1,158				135				—
TOTAL CURRENT ASSETS			10,219,118				10,101,878				1,179,436				7,773,694
NON CURRENT ASSETS
Long-term investments - net			176,733				136,741				15,965				9,870,259
Property, plant and equipment - net of accumulated depreciation of Rp 20,779,052 million in 2003 and Rp 26,440,288 million in 2004			29,353,120				34,583,400				4,037,759				17,745,441
Property, plant and equipment under revenue sharing arrangements - net of accumulated depreciation of Rp 863,695 million in 2003 and Rp 827,218 million in 2004			356,890				242,154				28,273				242,154
Advances and other non current assets			384,510				293,185				34,231				215,471
Intangible assets-net of accumulation amortization of Rp. 130,339 million in 2003, and Rp. 180,952 million in 2004			4,577,206				5,251,305				613,112				5,236,071
Advances payment for investment in share of stock			255,505				79,768				9,313				79,768
Escrow accounts			253,945				250,409				29,236				244,343
Property not used in operations			6,218				5,292				618				5,293
TOTAL NON CURRENT ASSETS			35,364,127				40,842,254				4,768,507				33,638,800
TOTAL ASSETS			45,583,245				50,944,132				5,947,943				41,412,494

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Table 1 (continued)
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA, Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
March 31, 2003 and 2004
(Figures are presented in millions of Indonesian Rupiah and Thousands of United States Dollar)

		Consolidated												Unconsol
		2003				2004								2004
		As restated
		Rp				Rp				US$				Rp
CURRENT LIABILITIES
Trade accounts payable
Related parties			810,867				676,785				79,018				644,489
Third parties			1,898,017				2,447,132				285,713				1,567,981
Other accounts payable			58,706				53,147				6,205				19,141
Taxes payable			516,992				596,350				69,626				193,964
Dividen payable			404,094				11,799				1,378				3,022
Accrued expenses			1,929,869				1,552,915				181,309				834,137
Unearned income			429,829				755,059				88,156				32,774
Advances from customers and suppliers			353,139				427,791				49,946				321,114
Short term bank loan			—				999,453				116,690				999,453
Current maturities of long-term liabilities			2,649,567				2,095,281				244,633				1,593,952
TOTAL CURRENT LIABILITIES			9,051,080				9,615,712				1,122,674				6,210,027
NON CURRENT LIABILITIES
Deferred tax liabilities - net			3,043,403				3,834,588				447,704				2,818,991
Unearned income under revenue sharing arrangements			127,842				61,805				7,216				61,805
Unearned initial investor payment under joint operation scheme			64,781				28,496				3,327				103,608
Accrued Long Service Award			411,327				428,317				50,008				428,317
Accrued post retirement health care benefit			1,833,873				2,508,099				292,831				2,508,099
Long-term debts - net of current maturities
Two-step loans - related parties			7,526,634				6,495,522				758,380				6,495,522
Suppliers’ credit loans			174,547				680				79				—
Bridging loan			53,077				517				60				—
Project cost payable			12,523				228				27				228
Guaranteed Notes and Bonds			2,310,206				1,761,501				205,663				981,719
Bank loan			135,101				2,138,447				249,673				1,467,494
Other long-term debts			69,022				9,150				1,068				—
Liabilities for acquisation of subsidiaries			1,149,157				747,491				87,273				747,491
TOTAL NONCURRENT LIABILITIES			16,911,493				18,014,841				2,103,309				15,613,273
MINORITY INTEREST IN NET ASSETS OF SUBSIDIARIES			3,359,027				3,724,385				434,838				—
EQUITY
Capital stock - Rp 500 par value per series-A Dwiwarna share and series-B shares. Authorized - 1 A Dwiwarna share and 39.999.999.999 B shares Issued and fully paid - 1 A Dwiwarna share and 10.079.999.639 B shares			5,040,000				5,040,000				588,441				5,040,000
Additional paid-in capital			1,073,333				1,073,333				125,316				1,073,333
Difference in value of restructuring transactions between entities under common control			(7,288,271	)			(7,288,271	)			(850,936	)			(7,288,271	)
Difference due to change of equity in associated companies			424,020				424,020				49,506				424,020
Transaction adjustment			234,853				224,229				26,180				224,229
Retained earning:
Appropriated			745,404				1,559,068				182,028				1,559,068
Un-appropriated			16,032,306				18,556,815				2,166,587				18,556,815
TOTAL EQUITY			16,261,645				19,589,194				2,287,122				19,589,194
TOTAL LIABILITIES AND EQUITY			45,583,245				50,944,132				5,947,943				41,412,494

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Table 2
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA, Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
FOR THE PERIOD ENDED MARCH 31, 2003 and 2004
(Figures in table are presented in millions of Indonesian Rupiah and Thousands of United States Dollar)

		Consolidated												Unconsol,
		2003				2004								2004
		As restated
		Rp				Rp				US$				Rp
OPERATING REVENUES
Telephone
Fixed lines			2,006,997				2,581,647				301,418				1,955,590
Cellular			1,797,072				2,449,493				285,989				—
Interconnection revenues			946,073				1,335,802				155,961				956,306
Revenue under joint operation scheme			427,362				94,807				11,069				266,564
Data and internet			579,822				1,009,452				117,858				251,566
Network			122,387				120,726				14,095				257,858
Revenues under revenue sharing arrangement			64,165				59,173				6,909				58,216
Other telecommunications services			48,474				58,803				6,865				302
Total Operating Revenues			5,992,352				7,709,903				900,164				3,746,402
OPERATING EXPENSES
Personnel			993,858				1,384,220				161,614				1,081,464
Depreciation			994,520				1,443,664				168,554				667,684
Operation, maintenance and telecommunications services			714,464				955,204				111,524				360,744
General and administrative			373,378				538,335				62,853				391,918
Marketing			92,353				166,096				19,392				58,366
Total Operating Expenses			3,168,573				4,487,519				523,937				2,560,177
OPERATING INCOME			2,823,779				3,222,384				376,227				1,186,226
OTHER INCOME (CHARGES)
Interest income			103,971				53,799				6,281				27,514
Interest expense			(361,835	)			(288,246	)			(33,654	)			(206,646	)
Gain (loss) on foreign exchange - net			68,268				13,015				1,520				(15,630	)
Equity in net gain (loss) of associated companies			357				18				2				1,023,133
Others - net			8,769				113,820				13,289				83,226
Total Other Income (Charges)-net			(180,470	)			(107,594	)			(12,562	)			911,598
INCOME BEFORE TAX			2,643,309				3,114,790				363,665				2,097,824
TAX EXPENSE			(682,423	)			(922,025	)			(107,651	)			(339,418	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			1,960,886				2,192,765				256,014				1,758,406
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			(312,047	)			(434,359	)			(50,713	)			—
NET INCOME			1,648,839				1,758,406				205,301				1,758,406
NET INCOME PER SHARE			163.58				174.45				0.02				174.45
NET INCOME PER ADS (20 SERIES-B SHARES PER ADS)			3,275.51				3,488.90				0.41				3,488.90

wINFO MEMO Q1- 2004 8

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Table 3
Breakdown of the Statement of Income
For the The First Quarter Ended March 31, 2003 and 2004

		2003				2004				Growth
		(Rp. Million)				(Rp. Million)				(%)
		As restated
1		2				3				4 = (3-2)/2
OPERATING REVENUE
Fixed Phone (wireline + wireless)
Local			529,670				675,496				27.53
Long distance			945,129				1,231,671				30.32
Monthly subscription charges			436,682				596,705				36.65
Instalation charges			40,818				55,308				35.50
Phone card-net			8,437				3,927				(53.46	)
Others			46,261				18,540				(59.92	)
Total Fixed Phone Revenues			2,006,997				2,581,647				28.63
Cellular			1,797,072				2,449,493				36.30
Interconnection
International calls			119,949				117,895				(1.71	)
Cellular			792,907				1,197,891				51.08
Others			33,218				20,017				(39.74	)
Total Interconnection Revenues			946,073				1,335,802				41.19
Revenue Under Joint Operation Scheme (JOS)
Minimum TELKOM Revenue (MTR)			268,247				17,775				(93.37	)
Distributable TELKOM Revenue (DTR)			156,446				76,842				(50.88	)
Amortization of Initial Investor Payments			2,669				190				(92.88	)
Total Revenue under JOS			427,362				94,807				(77.82	)
Data and Internet
SMS			418,407				748,642				78.93
VoIP			50,629				88,544				74.89
Multimedia:
Telkomnet Instan			92,189				146,305				58.70
Other Multimedia (ISDN etc.)			18,597				25,961				39.60
Total Data and Internet Revenues			579,822				1,009,452				74.10
Network
Leased lines			43,526				69,089				58.73
Satellite transponder			78,861				51,637				(34.52	)
Total Network Revenues			122,387				120,726				(1.36	)
Revenues under Revenue Sharing Arrangement			64,165				59,173				(7.78	)
Other Telecommunication Services (OTS)
Telex and telegram			694				309				(55.48	)
Others			47,780				58,492				22.42
Total OTS Revenues			48,474				58,801				21.30
TOTAL OPERATING REVENUES			5,992,351				7,709,903				28.66
OPERATING EXPENSES
Personnel			993,858				1,384,220				39.28
Depreciation			994,520				1,443,664				45.16
Operation, maintenance and telecommunications services
Operation and maintenance			314,997				362,205				14.99
Cost of phone cards			33,910				83,302				145.66
Lisence (Concession fees & radio frequency usage charges)			158,915				196,613				23.72
Others (rent, electricity, etc)			206,641				313,085				51.51
Total O & M			714,464				955,204				33.70
General and administrative
Provision for doubful account and inventory obsolescence			68,715				98,348				43.12
Training, education and recruitment			18,818				32,833				74.48
Research, development and consultant			14,616				26,457				81.01
Others			271,229				380,697				40.36
Total G & A			373,378				538,335				44.18
Marketing			92,354				166,096				79.85
TOTAL OPERATING EXPENSES			3,168,573				4,487,519				41.63
OPERATING INCOME			2,823,778				3,222,384				14.12

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Table 3 (continued)
Breakdown of the Statement of Income
For the The First Quarter Ended March 31, 2003 and 2004

		2003				2004				Growth
		(Rp. Million)				(Rp. Million)				(%)
1		2				3				4 = (3-2)/2
OTHER INCOME (CHARGE)
Interest income			103,971				53,799				(48.26	)
Interest expense			(361,835	)			(288,246	)			(20.34	)
Gain (loss) on foreign exchange - net			68,268				13,015				(80.94	)
Equity in net income (loss) of associated companies			357				18				(94.96	)
Gain on sales of equity in Telkomsel			—				—
Others			8,769				113,820				1,197.98
Total Other Income (Charge)			(180,470	)			(107,594	)			(40.38	)
INCOME BERFORE TAX			2,643,308				3,114,790				17.84
TAX EXPENSE			(682,423	)			(922,025	)			35.11
INCOME BERFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			1,960,886				2,192,765				11.83
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			(312,047	)			(434,359	)			39.20
NET INCOME			1,648,839				1,758,406				6.65
NET INCOME PER SHARE			163.58				174.45				6.65
NET INCOME PER ADS (20 SERIES B SHARE PER ADS)			3,271.51				3,488.90				6.65

w INFO MEMO Q1- 2004 10

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Table
FINANCIAL RATIOS FOR THE THREE MONTHS ENDED MARCH 31, 2003 & 2004

		2003				2004				Growth (%)
1		2				3				4=(3-2)/2
Contribution of pulses to total fixed-phone revenue:
Local Calls (%)			26.39				26.17				(0.23	)
Domestic Long Distance Calls (%)			47.09				47.71				0.62
Monthly subscription charges (%)			21.76				23.11				1.36
Installation charges (%)			2.03				2.14				0.11
Phone-card			0.42				0.15				(0.27	)
Others (%)			2.30				0.72				(1.59	)
Contribution to total operating revenues:
Cellular (%)			29.99				31.77				1.78
Fixed-phone (%)			33.49				33.48				(0.01	)
Revenue under JOS (%)			7.13				1.23				(5.90	)
Interconnection (%)			15.79				17.33				1.54
Network (%)			2.04				1.57				(0.48	)
Data dan internet (%)			9.68				13.09				3.42
Revenue under RSA (%)			1.07				0.77				(0.30	)
Other telecommunications services (%)			0.81				0.76				(0.05	)
Average Fixed Phone Revenue per user/month			175,265				183,644				4.78
EBITDA (Rp million)			3,951,716				4,848,322				22.69
EBITDA margin (%)			65.95				62.88				(3.06	)
Operating margin (%)			47.12				41.80				(5.33	)
Profit Margin (%)			27.52				22.81				(4.71	)
Current ratio (%)			112.90				105.06				(7.85	)
Return on Assets (%)			3.62				3.45				(0.17	)
Return on Equity (%)			10.14				8.98				(1.16	)
Total Liabilities to Equity (%)			159.66				141.05				(18.61	)
Gearing (Net Debt to Equity) (%)			48.38				46.35				(2.03	)
Debt to Equity (%)			86.58				72.74				(13.85	)
Debt to EBITDA (%)			356.30				293.88				(62.42	)
Debt Service Ratio (Times)			1.3				1.4				0.12
EBITDA to Interest Expense (limes)			10.9				16.8				5.9
EBITDA to Net Debt (%)			50.2				53.4				3.17
CAPEX to Operating Revenue (%)- Telkom as Individual Entity			9.1				17.3				8.24

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Table 5
FIXED TELEPHONE LINE
As of March 2003 and 2004

														GROWTH
		UNIT				Q1/2003				Q1/2004				( % )
1		2				3				4				5=(4-3)/3
Exchange Capacity TELKOM Division
Wireline		Lines					6,803,342				7,810,499				14.80	%
Wireless		Lines					—				666,050				0.00	%
Total Exchange Cap. TELKOM (Wireline & Wireless)		Lines					6,803,342				8,476,549				24.59	%
Exchange Capacity KSO Division
Wireline		Lines					2,452,173				1,655,383				-32.49	%
Wireless (MSC)		Lines					—				108,650				0.00	%
Total Exchange Cap. KSO (Wireline & Wireless)		Lines					2,452,173				1,764,033				-28.06	%
Exchange Capacity TELKOM & KSO Division
Wireline		Lines					9,255,515				9,465,882				2.27	%
Wireless		Lines					—				774,700				0.00	%
Total Exchange Cap. TELKOM & KSO (Wireline & Wireless)		Lines					9,255,515				10,240,582				10.64	%
Installed Lines TELKOM Division
Wireline		Lines					6,270,161				7,315,914				16.68	%
Wireless		Lines					—				650,550				0.00	%
Total Installed Lines TELKOM (Wireline & Wireless)		Lines					6,270,161				7,966,464				27.05	%
Installed Lines KSO Division
Wireline		Lines					2,247,658				1,576,832				-29.85	%
Wireless		Lines					—				108,650				0.00	%
Total Installed Lines KSO (Wireline & Wireless)		Lines					2,247,658				1,685,482				-25.01	%
Installed Lines TELKOM & KSO Division
Wireline		Lines					8,517,819				8,892,746				4.40	%
Wireless		Lines					—				759,200				0.00	%
Total Installed Lines TELKOM & KSO (Wireline & Wireless)		Lines					8,517,819				9,651,946				13.31	%
Subscribers TELKOM Division
Wireline		Lines					5,448,708				6,507,681				19.44	%
Wireless		Lines					—				349,810				0.00	%
Total Subscribers TELKOM Division (Wireline & Wireless)		Lines					5,448,708				6,857,491				25.86	%
Subscribers KSO Division
Wireline		Lines					1,972,162				1,389,683				-29.54	%
Wireless		Lines					—				70,683				0.00	%
Total Subscribers KSO Division (Wireline & Wireless)		Lines					1,972,162				1,460,366				-25.95	%
Subscribers TELKOM & KSO Division
Wireline		Lines					7,420,870				7,897,364				6.42	%
Wireless		Lines					—				420,493				0.00	%
Tot Subscribers -TELKOM & KSO Div (Wireline & Wireless)		Lines					7,420,870				8,317,857				12.09	%
Public Phone TELKOM Division
Wireline		Lines					317,709				353,851				11.38	%
Wireless		Lines					17				1,124				6511.76	%
Tot Public Phone TELKOM Div (Wireline & Wireless)		Lines					317,726				354,975				11.72	%
Public Phone KSO Division
Wireline		Lines					86,556				56,601				-34.61	%
Wireless		Lines					—				—				0.00	%
Total Public Phone KSO Division (Wireline & Wireless)		Lines					86,556				56,601				-34.61	%
Public Phone TELKOM & KSO Division
Wireline		Lines					404,265				410,452				1.53	%
Wireless		Lines					17				1,124				6511.76	%
Tot Public Phone TELKOM & KSO Div (Wireline & Wireless)		Lines					404,282				411,576				1.80	%
Lis Fixed TELKOM Division
Wireline		Lines					5,766,434				6,861,532				18.99	%
Wireless		Lines					—				350,934				0.00	%
Total Lines In Services TELKOM (Wireline & Wireless)		Lines					5,766,434				7,212,466				25.08	%
Lis Fixed KSO Division
Wireline		Lines					2,058,718				1,446,284				-29.75	%
Wireless		Lines					—				70,683				0.00	%
Total Lines In Services KSO (Wireline & Wireless)		Lines					2,058,718				1,516,967				-26.31	%
Lis Fixed TELKOM & KSO Division
Wireline		Lines					7,825,152				8,307,816				6.17	%
Wireless		Lines					—				421,617				0.00	%
Tot LIS TELKOM & KSO Div (Wireline & Wireless)		Lines					7,825,152				8,729,433				11.56	%

Column 3		Column 4
TELKOM Division includes :		TELKOM Division includes :
Regional Division - I Sumatera		Regional Division - I Sumatera
Regional Division - II Jakarta		Regional Division - II Jakarta
Regional Division - V East Java		Regional Division - III West Java
Regional Division - VI kalimantan		Regional Division - V East Java
		Regional Division - VI Kalimantan

w INFO MEMO Q1- 2004 12

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Table 6
PRODUCTION
As of March 31, 2003 and 2004

														GROWTH
		Unit				Q1/2003				Q1/2004				( % )
1		2				3				4				5=(4-3)/3
Production :
Subscriber -TELKOM Division
Wireline		Pulses					10,744,363,106				13,296,411,108				23.75	%
Wireless (exclude data & sms)							—				51,574,880,875
Tot Subscriber Prod - TELKOM Div (Wireline & Wireless)		Pulses					10,744,363,106
Subscriber -KSO Division
Wireline		Pulses					3,914,537,038				3,012,947,824				-23.03	%
Wireless (exclude data & sms)							—				13,178,160,637				0.00	%
Tot Subscriber Prod - KSO Div (Wireline & Wireless)		Pulses					3,914,537,038
Subscriber TELKOM & KSO Division
Wireline		Pulses					14,658,900,144				16,309,358,932				11.26	%
Wireless (exclude data & sms)							—				64,753,041,511
Tot Subsc Prod - TELKOM & KSO Div (Wireline & Wireless)		Pulses					14,658,900,144
Public Phone -TELKOM Division
Wireline		Pulses					2,964,145,085				3,080,308,860				3.92	%
Wireless (exclude data & sms)							—				1,914,925,515
Tot Public Phone Prod - TELKOM Div (Wireline & Wireless)		Pulses					2,964,145,085
Public Phone - KSO Division
Wireline		Pulses					1,411,886,220				1,045,477,772				-25.95	%
Wireless (exclude data & sms)							—				—				0.00	%
Tot Public Phone Prod - KSO Div (Wireline & Wireless)		Pulses					1,411,886,220
Public Phone - TELKOM & KSO Division
Wireline		Pulses					4,376,031,305				4,125,786,632				-5.72	%
Wireless (exclude data & sms)							—				1,914,925,515
Tot Public Phone Prod - TELKOM & KSO Div (Wireline & Wireless)		Pulses					4,376,031,305
Lines in Services - Production
Wireline		Pulses					19,034,931,449				20,435,145,564				7.36	%
Wireless (exclude data & sms)							—				66,683,712,972				0.00	%
Tot LIS’s Pulse Prod TELKOM & KSO Div (Wireline & Wireless)		Pulses					19,034,931,449
Productivity Per Average Subscriber Line
Wireline		Pulses/Line					1,986				2,077				4.56	%
Wireless (* 2003 Pulse/Line, 2004 Detik/Line)							—				307,986				0.00	%
Pulses Per Avrg, Subscr, Line ( TELKOM & KSO Division )		Pulses/Line					1,985
Productivity Per Average LIS
Wireline		Pulses/Line					2,446				2,474				1.15	%
Wireless							—				316,324				0.00	%
Pulses Per Average LIS ( TELKOM & KSO Division )		Pulses/Line					2,444

     Note :Wireless production : 2003 (pulses), 2004 (second)

Column 3		Column 4
TELKOM Division includes :		TELKOM Division includes :
Regional Division - I Sumatera		Regional Division - I Sumatera
Regional Division - II Jakarta		Regional Division - II Jakarta
Regional Division - V East Java		Regional Division - III West Java
Regional Division - VI kalimantan		Regional Division - V East Java
		Regional Division - VI Kalimantan

w INFO MEMO Q1- 2004 13

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Table 7
OPERATIONAL RATIO
As March 31, 2003 and 2004

														GROWTH
		UNIT				Q1/2003				Q1/2004				( % )
1		2				3				4				5=(4-3)/3
Subscriber Mix - TELKOM Division (Wireline - Wireless)
Bisnis		Percent					18.90				23.16				22.57	%
Residensial		Percent					80.88				76.64				-5.24	%
Sosial		Percent					0.22				0.19				-12.47	%
Subscriber Mix - KSO Division (Wireline - Wireless)
Bisnis		Percent					17.02				21.67				27.28	%
Residensial		Percent					82.51				78.24				-5.17	%
Sosial		Percent					0.47				0.09
Subscriber Mix - TELKOM & KSO Division (Wireline - Wireless)
Bisnis		Percent					18.57				22.90				23.35	%
Residensial		Percent					81.17				76.92				-5.23	%
Sosial		Percent					0.27				0.18				-33.91	%
Local & LD call contribution on subscriber production
Wireline production
Local call		Percent					31.90				31.01				-2.80	%
Long Distance call		Percent					68.10				68.99				1.31	%
Wireless production
Local call		Percent					14.03				33.86
Long Distance call		Percent					85.97				66.14
Utilization RATE (LIS/IL)
Wireline		Percent					91.87				93.42				1.69	%
Wireless		Percent					0.00				55.53				0.00	%
Wireline & Wireless		Percent					91.87				90.44				-1.55	%
Occupancy Rate (connected/exchange cap.)
Wireline		Percent					85.04				88.38				3.92	%
Wireless		Percent					0.00				97.41				0.00	%
Wireline & Wireless		Percent					85.15				89.06				4.60	%
Call Completion Rate
Local		Percent					75.60				77.09				1.97	%
Domestic Long Distance		Percent					66.59				69.74				4.73	%
Employees
TELKOM Division		Persons					24,520				24,179				-1.39	%
KSO Division		Persons					10,110				6,187				-38.80	%
Employees (TELKOM & KSO Division)		Persons					34,630				30,366				-12.31	%
Productivity (LIS/Employees)
TELKOM Division		Lines/Empl					235.17				298.29				26.84	%
KSO Division		Lines/Empl					203.63				245.19				20.41	%
Productivity (TELKOM & KSO Division)		Lines/Empl					225.96				287.47				27.22	%
Density (LIS Per 100 Inhabitants)
TELKOM Division		Percent					4.55				4.38				-3.60	%
KSO Division		Percent					2.01				1.97				-2.31	%
Density (TELKOM & KSO Division)		Percent					3.42				3.61				5.75	%

Column 3		Column 4
TELKOM Division includes :		TELKOM Division includes :
Regional Division - I Sumatera		Regional Division - I Sumatera
Regional Division - II Jakarta		Regional Division - II Jakarta
Regional Division - V East Java		Regional Division - III West Java
Regional Division - VI kalimantan		Regional Division - V East Java
		Regional Division - VI Kalimantan

Table 8
KSO Performance as of March 31, 2004

Key Indicators		KSO I				KSO IV				KSO VI				KSO VII
		(in billions Rp)				(in billions Rp)				(in billions Rp)				(in billions Rp)
MTR			132				35				36				65
DTR			99				16				42				64
Total			231				51				79				129

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Table 9
OPERATIONAL PERFORMANCE REGIONAL DIVISION
A of March 31, 2003 and 2004

														GROWTH
		DIVISION				Q1/ 2003				Q1/ 2004				%
1. EXCHANGE CAPACITY
a. WIRELINE			1				1,269,208				1,310,530				3.26	%
			2				3,396,484				3,438,739				1.24	%
			3				868,654				884,254				1.80	%
			4				770,289				770,289				0.00	%
			5				1,726,392				1,748,742				1.29	%
			6				411,258				428,234				4.13	%
			7				813,230				885,094				8.84	%
SUB TOTAL							9,255,515				9,465,882				2.27	%
b. WIRELESS ( MSC )			1				—				167,940
			2				—				255,410
			3				—				92,800
			4				—				47,100
			5				—				129,900
			6				—				20,000
			7				—				61,550
SUB TOTAL							—				774,700
TOTAL EXCHANGE CAPACITY							9,255,515				10,240,582				10.64	%
2. INSTALLED LINES
a. WIRELINE			1				1,213,454				1,261,934				4.00	%
			2				3,116,494				3,218,332				3.27	%
			3				731,463				788,735				7.83	%
			4				731,260				739,285				1.10	%
			5				1,549,905				1,618,679				4.44	%
			6				390,308				428,234				9.72	%
			7				784,935				837,547				6.70	%
SUB TOTAL							8,517,819				8,892,746				4.40	%
b. WIRELESS			1				—				167,940
			2				—				239,910
			3				—				92,800
			4				—				47,100
			5				—				129,900
			6				—				20,000
			7				—				61,550
SUB TOTAL							—				759,200
TOTAL INSTALLED LINES							8,517,819				9,651,946				13.31	%
3. SUBCRIBERS
a. WIRELINE			1				1,096,507				1,171,178				6.81	%
			2				2,666,121				2,784,739				4.45	%
			3				652,804				710,440				8.83	%
			4				619,458				640,626				3.42	%
			5				1,351,050				1,443,695				6.86	%
			6				335,030				397,629				18.68	%
			7				699,900				749,057				7.02	%
SUB TOTAL							7,420,870				7,897,364				6.42	%
b. WIRELESS			1				—				48,465
			2				—				150,915
			3				—				18,505
			4				—				30,951
			5				—				106,279
			6				—				25,646
			7				—				39,732
SUB TOTAL							—				420,493
TOTAL SUBCRIBERS							7,420,870				8,317,857				12.09	%
4. LINE IN SERVICE
a. WIRELINE			1				1,136,553				1,218,807				7.24	%
			2				2,828,866				2,945,483				4.12	%
			3				682,988				737,984				8.05	%
			4				650,258				671,185				3.22	%
			5				1,452,331				1,547,058				6.52	%
			6				348,684				412,200				18.22	%
			7				725,472				775,099				6.84	%
SUB TOTAL							7,825,152				8,307,816				6.17	%
b. WIRELESS			1				—				49,056
			2				—				150,915
			3				—				18,505
			4				—				30,951
			5				—				106,287
			6				—				26,171
			7				—				39,732
SUB TOTAL							—				421,617
TOTAL LINE IN SERVICE							7,825,152				8,729,433				11.56	%

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Table 9 (continued)
OPERATIONAL PERFORMANCE REGIONAL DIVISION
A of March 31, 2003 and 2004

														GROWTH
		DIVISION				Q1/ 2003				Q1/ 2004				%
5. LINE IN SERVICE PRODUCTION
a. WIRELINE (PULSE)			1				3,109,912,383				3,454,089,768				11.07	%
			2				6,523,373,823				7,005,325,238				7.39	%
			3				1,538,489,429				1,715,631,682				11.51	%
			4				1,664,872,327				1,805,179,654				8.43	%
			5				2,930,762,708				3,109,123,886				6.09	%
			6				1,144,459,277				1,092,549,394				-4.54	%
			7				2,123,061,502				2,253,245,942				6.13	%
SUB TOTAL							19,034,931,449				20,435,145,564				7.36	%
b. WIRELESS (SECOND)			1				—				8,499,777,297
all service production exclude data & sms			2				—				23,460,342,489
			3				—				6,039,079,154
			4				—				1,511,250,570
			5				—				8,940,721,362
			6				—				6,565,632,032
			7				—				11,666,910,067
SUB TOTAL							—				66,683,712,972
TOTAL LINE IN SERVICE PRODUCTION							19,034,931,449

Column 3		Column 4
TELKOM Division includes :		TELKOM Division includes :
Regional Division - I Sumatera		Regional Division - I Sumatera
Regional Division - II Jakarta		Regional Division - II Jakarta
Regional Division - V East Java		Regional Division - III West Java
Regional Division - VI kalimantan		Regional Division - V East Java Regional Division - VI Kalimantan

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Table 10
PT TELEKOMUNIKASI SELULAR (TELKOMSEL)
BALANCE SHEET
As of March 31, 2003 and 2004
(In millions of Rupiah and Thousands in US Dollar)

		2003				2004
ASSETS		Rp .				Rp .				US$ (1)				Growth
CURRENT ASSETS
Cash and cash equivalents (2)			1,110,873				2,173,547				253,121				96	%
Acct. receivable - net of allow. for doubtful acct.			161,755				261,708				30,477				62	%
Accrued income - net of allow. for doubtful acct.			322,369				375,715				43,754				17	%
Inventories - net of allow. for obsolescence			49,822				32,439				3,778				-35	%
Prepaid tax and expenses			215,321				351,189				40,898				63	%
Advances			7,770				30,662				3,571				295	%
Others			103,818				7,614				887				-93	%
Total Current Assets			1,971,728				3,232,874				376,486				64	%
PROPERTY, PLANT AND EQUIPMENT
Fixed assets			12,782,513				17,668,880				2,057,631				38	%
Work in progress			227,282				210,573				24,522				-7	%
Accumulated depreciation			(2,721,919	)			(4,662,334	)			(542,953	)			71	%
PPE - net book value			10,287,876				13,217,119				1,539,200				28	%
OTHER ASSETS			47,473				49,423				5,756				4	%
TOTAL ASSETS			12,307,077				16,499,416				1,921,442				34	%
CURRENT LIABILITIES
Short-term loan			—				—				—
Accounts payable			440,445				235,185				27,388				-47	%
Accrued liabilities			1,505,336				1,448,992				168,743				-4	%
Taxes payable			223,342				373,526				43,499				67	%
Unearned income			356,151				703,930				81,976				98	%
Dividend payable			1,114,870				—				—				—
Curr. maturities of long-term loan			—				191,144				22,260
Curr. maturities of obligation under cap. lease			819				—				—				-100	%
Other current liabilities			52,374				—				—				—
Total Current Liabilities			3,693,337				2,952,777				343,866				-20	%
LONG-TERM LIABILITIES
Guaranteed notes - net			1,332,893				779,782				90,810				-41	%
Long term loan - net of current maturities			—				669,003				77,909
Total Long-term Liabilities			1,332,893				1,448,785				168,719				9	%
DEFERRED TAX LIABILITIES - NET			327,083				575,119				66,976				76	%
EQUITY
Capital stock - Rp 1,000,000 par value
Authorized - 650,000 shares
Issued and fully paid - 182,570 shares			182,570				182,570				21,261				0	%
Additional paid-in capital			1,504,854				1,504,854				175,248				0	%
Retained earnings			5,266,340				9,835,311				1,145,372				87	%
Total Equity			6,953,764				11,522,735				1,341,881				66	%
TOTAL LIAB. & STOCKHOLDERS’ EQUITY			12,307,077				16,499,416				1,921,442				34	%

Notes:

(1) US$1 = Rp 8,565.00 (March 31, 2004)

(2) Consisting of US$70.2 millions, Euro 86.4 millions and Rp 562 billions for 2004

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Tabel 11
PT TELEKOMUNIKASI SELULAR (TELKOMSEL)
INCOME STATEMENT
For The First Quarter Ended March 31, 2003 and 2004
(In millions of Rupiah and Thousands in US Dollar)

		2003				2004
		Rp .				Rp .				US$ (1)				Growth
OPERATING REVENUES
Post-paid (kartuHALO)			794,325				897,271				105,661				13	%
Prepaid (simPATI)			1,421,077				2,279,129				268,385				60	%
International roaming			102,148				105,260				12,395				3	%
Interconnection revenues (outpayment) - net			2,361				47,965				5,648				1932	%
Total Operating Revenues			2,319,911				3,329,625				392,089				44	%
OPERATING EXPENSES
Personnel			68,421				117,990				13,894				72	%
Operation & maintenance			382,535				470,152				55,364				23	%
General & administrative			76,092				125,064				14,727				64	%
Marketing & selling			21,032				73,896				8,702				251	%
Rev. dependent & other cost of services			115,600				163,050				19,200				41	%
Depreciation and amortization			344,784				642,565				75,667				86	%
Total Operating Expenses			1,008,464				1,592,717				187,554				58	%
EBIT (EARNINGS BEFORE INTEREST & TAXES)			1,311,447				1,736,908				204,535				32	%
OTHER INCOME/(CHARGES)
Interest income/(expenses)			(23,677	)			(64,060	)			(7,544	)			171	%
Foreign exchange gain/(loss)			(5,137	)			57,814				6,808				1225	%
Others - net			(15,898	)			8,789				1,035				155	%
Other income/(charges) - net			(44,712	)			2,543				299				-106	%
INCOME BEFORE TAX			1,266,735				1,739,451				204,834				37	%
PROVISION FOR INCOME TAX			387,190				511,094				60,185				32	%
NET INCOME			879,545				1,228,357				144,649				40	%
EBITDA			1,656,231				2,379,473				280,202				44	%
EBITDA MARGIN			71	%			71	%			71	%			0	%

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Table 12
PT TELEKOMUNIKASI SELULAR (TELKOMSEL)
Operational Indicators as of March 31, 2003 & 2004

		Unit		2003				2004				Growth
CUSTOMER BASE
Net Additions
kartuHALO		Subscriber			21,408				25,341				18	%
simPATI		Subscriber			568,288				1,128,518				99	%
Total		Subscriber			589,696				1,153,859				96	%
Customer base
kartuHALO		Subscriber			944,413				1,032,375				9	%
simPATI		Subscriber			5,656,055				9,710,291				72	%
Total		Subscriber			6,600,468				10,742,666				63	%
ARPU
Total (3 months average)
kartuHALO		Rp.’000 per mo.			305				327				7	%
simPATI		Rp.’000 per mo.			93				90				-3	%
Blended		Rp.’000 per mo.			125				115				-8	%
Non-voice/SMS (3 months average)
kartuHALO		Rp.’000 per mo.			27				35				30	%
simPATI		Rp.’000 per mo.			21				24				14	%
Blended		Rp.’000 per mo.			22				25				14	%
SMS
# messages/sub/month kartuHALO		message			103				123				19	%
# messages/sub/month simPATI		message			65				71				9	%
NETWORK DATA
BTS/TRX
Base stations installed		Unit			3,903				5,118				31	%
Transmit receive exchanges (TRX)		Unit			32,301				41,276				28	%
Capacity
Switching - HLR capacity		Subs. ’000			10,295				15,795				53	%
Switching - VLR capacity		Subs. ’000			10,115				15,195				50	%
Prepaid capacity		Subs. ’000			7,740				14,234				84	%
Quality of service
Call success rate		%			90.69	%			96.02	%			5.33	%
Call completion rate		%			98.74	%			99.29	%			0.55	%
EMPLOYEE DATA
Total employees		person			2,629				3,001				14	%
Efficiency ratio		Subs/employee			2,510				3,580				43	%

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