6-K 1 u92521e6vk.htm PT TELEKOMUNIKASI INDONESIA TBK

PT Telekomunikasi Indonesia TbK

Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

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

For the month of                   May                   , 20 05

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):

TABLE OF CONTENTS

SIGNATURES

PRESS RELEASE

CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2003 AND 2004

CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2004 AND 2005

CONSOLIDATED STATEMENTS OF INCOME FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

Table of Contents

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 2, 2005		By	/s/ Rochiman Sukarno
		(Signature)
		ROCHIMAN SUKARNO Head of Investor Relation

Table of Contents

PRESS RELEASE

No. TEL.112/PR000/UH1/2005

TELKOM FILED ITS END YEAR RESULT AUDITED 2004 AND
FIRST QUARTER UNAUDITED 2005 FINANCIAL REPORTS

Jakarta, May 02, 2005 – Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. (“TELKOM” or the “Company”) filed its audited consolidated year end 2004 and un-audited consolidated first quarter 2005 financial reports to BAPEPAM (Capital Market Supervisory Agency) and the Stock Exchanges.

Copies of both balance sheets and income statements are attached to this Press Release. For the complete please visit www.telkom-indonesia.com

TELKOM is the principal provider of fixed-line services in Indonesia. TELKOM’s majority-owned subsidiary Telkomsel is also the largest Indonesian mobile cellular operator, as measured by subscribers and revenues. The Company also provides a wide range of other telecommunications services including interconnection, network, data and internet services, and other telecommunications services. TELKOM’s shares are listed in the Jakarta and Surabaya Stock Exchange (JSX/SSX: TLKM) and its American depository Shares are listed in the New York Stock Exchange (NYSE:TLK) and London Stock Exchange (LSE:TKIA)

ROCHIMAN SUKARNO
Head of Investor Relations

For further information, please contact:

Investor Relations Unit
PT TELEKOMUNIKASI INDONESIA, Tbk
Tel:    62-21-5215109
Fax:  61-21-5220500
Email: investor@telkom.co.id
Website: www.telkom-indonesia.com

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

						2003				2004
		Notes				Rp				Rp				US$ (Note 3)
ASSETS
CURRENT ASSETS
Cash and cash equivalents			2c,2f,5,47				5,094,472				4,856,123				522,726
Temporary investments			2c,2g,47				4,006				19,949				2,147
Trade accounts receivable			2c,2h,6,47
Related parties — net of allowance for doubtful accounts of Rp110,932 million in 2003, and Rp64,928 million in 2004							410,923				419,104				45,113
Third parties — net of allowance for doubtful accounts of Rp332,960 million in 2003, and Rp457,138 million in 2004							2,422,005				2,899,999				312,164
Other accounts receivable — net of allowance for doubtful accounts of Rp45,544 million in 2003, and Rp9,236 million in 2004			2c,2h,47				170,121				55,769				6,003
Inventories — net of allowance for obsolescence of Rp40,489 million in 2003, and Rp54,733 million in 2004			2i,7				154,003				203,085				21,861
Prepaid expenses			2c,2j,8,47				429,695				628,069				67,607
Prepaid taxes			41a				212,282				77,228				8,313
Other current assets			2c,9,47				45,083				44,608				4,802
Total Current Assets							8,942,590				9,203,934				990,736
NON-CURRENT ASSETS
Long-term investments — net			2g,10				64,648				82,613				8,893
Property, plant and equipment — net of accumulated depreciation of Rp23,581,559 million in 2003, and Rp29,297,163 million in 2004			2k,2l,11				34,775,140				39,572,099				4,259,645
Property, plant and equipment under revenue-sharing arrangements — net of accumulated depreciation of Rp791,645 million in 2003, and Rp694,570 million in 2004			2m,12,50				305,041				499,127				53,727
Prepaid pension benefit costs			2q,44				288,222				91,262				9,824
Advances and other non-current assets			2c,13,47				175,954				1,372,351				147,723
Goodwill and other intangible assets — net of accumulated amortization of Rp973,704 million in 2003, and Rp1,846,034 million in 2004			1c,2d,14				5,144,050				5,411,425				582,500
Advance payments for investments in shares of stock			4f				65,458				—				—
Escrow accounts			15				522,146				36,281				3,905
Total Non-current Assets							41,340,659				47,065,158				5,066,217
TOTAL ASSETS							50,283,249				56,269,092				6,056,953

See accompanying notes to consolidated financial statements, which form an integral part of
the consolidated financial statements.

1

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

						2003				2004
		Notes				Rp				Rp				US$ (Note 3)
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade accounts payable			2c,16,47
Related parties							657,478				643,094				69,224
Third parties							3,109,854				3,611,456				388,747
Other accounts payable							187,938				5,073				546
Taxes payable			2s,41b				1,513,038				1,592,479				171,419
Dividends payable							3,779				62,689				6,748
Accrued expenses			2c,17,47				1,185,210				1,051,366				113,172
Unearned income			18				763,211				1,030,000				110,872
Advances from customers and suppliers			19				268,148				278,430				29,971
Short-term bank loans			2c,20,47				37,642				1,101,633				118,583
Current maturities of long-term liabilities			2c,21,47				3,443,516				2,300,822				247,667
Total Current Liabilities							11,169,814				11,677,042				1,256,949
NON-CURRENT LIABILITIES
Deferred tax liabilities — net			2s,41e				3,546,770				3,352,171				360,836
Unearned income on revenue-sharing arrangements			2m,12,50				111,732				360,332				38,787
Unearned initial investor payments under joint operation schemes			2n,49				31,584				20,453				2,202
Provision for long service awards			2c,2r,45,47				491,037				572,303				61,604
Provision for post-retirement benefits			2c,2r,46,47				2,063,524				1,841,146				198,186
Accrued pension and other post-retirement benefits costs			2q,44b,44d				13,239				32,007				3,445
Long-term liabilities — net of current maturities
Two-step loans — related party			2c,22,47				6,858,910				5,363,283				577,318
Notes and bonds			23				2,102,502				2,331,465				250,965
Bank loans			2c,24,47				2,115,797				1,775,799				191,152
Liabilities of business acquisitions			25				746,974				3,743,317				402,940
Suppliers’ credit loans			26				671				—				—
Bridging loan			27				510				—				—
Other long-term debt							9,153				—				—
Total Non-current Liabilities							18,092,403				19,392,276				2,087,435
MINORITY INTEREST			28				3,708,155				4,938,432				531,586
STOCKHOLDERS’ EQUITY
Capital stock1) — Rp250 par value per Series A Dwiwarna share and Series B share
Authorized — one Series A Dwiwarna share and 79,999,999,999 Series B shares
Issued and fully paid — one Series A Dwiwarna share and 20,159,999,279 Series B shares			1b,29				5,040,000				5,040,000				542,519
Additional paid-in capital			30				1,073,333				1,073,333				115,536
Difference in value of restructuring transactions between entities under common control			31				(7,288,271	)			(7,288,271	)			(784,529	)
Difference due to change of equity in associated companies			2g				385,595				385,595				41,506
Unrealized holding gain on available-for-sale securities			2g				—				884				95
Translation adjustment			2g				224,232				229,595				24,714
Retained earnings
Appropriated							1,559,068				1,680,813				180,927
Unappropriated							16,318,920				19,139,393				2,060,215
Total Stockholders’ Equity							17,312,877				20,261,342				2,180,983
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY							50,283,249				56,269,092				6,056,953

¹⁾ The prior year’s authorized, issued and fully paid capital stock and par value amounts have been restated to reflect a two-for-one stock split as resolved in the Annual General Meeting of Stockholders on July 30, 2004.

See accompanying notes to consolidated financial statements, which form an integral part of
the consolidated financial statements.

2

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars, except per share and per ADS data)

										2002				2003				2004
						Notes				Rp				Rp				Rp				US$ (Note 3)
OPERATING REVENUES
		Telephone					2p,32
		Fixed lines									7,264,099				8,896,865				10,645,021				1,145,858
		Cellular									6,226,801				8,458,830				10,421,298				1,121,776
		Interconnection					2p,33,47				2,831,334				4,162,148				6,187,981				666,091
		Joint operation schemes					2n,34,49				2,128,145				1,486,307				656,614				70,680
		Data and Internet					35				1,551,626				3,108,562				4,808,742				517,626
		Network					36				316,098				517,865				654,309				70,432
		Revenue-sharing arrangements					2m,37,50				263,754				258,464				280,576				30,202
		Other telecommunications services									220,961				226,882				293,225				31,564
		Total Operating Revenues									20,802,818				27,115,923				33,947,766				3,654,229
OPERATING EXPENSES
		Personnel					38				4,387,568				4,440,096				5,570,778				599,653
		Depreciation					2k,2l,2m,11,12				3,473,370				4,779,520				6,438,557				693,063
		Operations, maintenance and telecommunication services					39				2,290,219				3,338,693				4,529,587				487,577
		General and administrative					40				1,146,294				2,078,777				2,599,847				279,854
		Marketing									375,152				502,898				881,930				94,933
		Total Operating Expenses									11,672,603				15,139,984				20,020,699				2,155,080
OPERATING INCOME											9,130,215				11,975,939				13,927,067				1,499,149
OTHER INCOME (CHARGES)
		Gain on sale of long-term investment in Telkomsel									3,196,380				—				—				—
		Interest income					47				479,802				366,024				317,941				34,224
		Interest expense					47				(1,582,750	)			(1,383,446	)			(1,270,136	)			(136,721	)
		Gain (loss) on foreign exchange — net					2e				556,613				126,121				(1,220,760	)			(131,406	)
		Equity in net income of associated companies					2g,10				4,598				2,819				3,420				368
		Others — net									(35,956	)			364,338				331,050				35,635
		Other income (charges) — net									2,618,687				(524,144	)			(1,838,485	)			(197,900	)
INCOME BEFORE TAX											11,748,902				11,451,795				12,088,582				1,301,249
TAX EXPENSE							2s,41c
		Current tax									(2,747,762	)			(3,791,280	)			(4,267,111	)			(459,323	)
		Deferred tax									(151,209	)			(69,810	)			264,039				28,422
											(2,898,971	)			(3,861,090	)			(4,003,072	)			(430,901	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES											8,849,931				7,590,705				8,085,510				870,348
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES, net							28				(810,222	)			(1,503,478	)			(1,956,301	)			(210,581	)
NET INCOME											8,039,709				6,087,227				6,129,209				659,767
BASIC EARNINGS PER SHARE 1)							2t,42
		Net income per share									398.80				301.95				304.03				0.03
		Net income per ADS (40 Series B shares per ADS)									15,951.80				12,077.83				12,161.13				1.20

¹⁾ The prior years’ basic earnings per share have been restated to reflect a two-for-one stock split as resolved in the Annual General Meeting of Stockholders on July 30, 2004.

See accompanying notes to consolidated financial statements, which form an integral part of
the consolidated financial statements.

3

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

														Difference in
														value of
														restructuring				Difference due
														transactions				to change								Unrealized
										Additional				between				of equity								holding loss												Total
						Capital				paid-in				entities under				in associated				Translation				on available-for-				Retained earnings								stockholders’
Description		Notes				stock				capital				common control				companies				adjustment				sale securities				Appropriated				Unappropriated				equity
						Rp				Rp				Rp				Rp				Rp				Rp				Rp				Rp				Rp
Balance as of January 1, 2002							5,040,000				1,073,333				(6,992,233	)			489,178				256,674				(207	)			320,392				8,893,824				9,080,961
Foreign currency translation of CSM			2g				—				—				—				—				(21,009	)			—				—				—				(21,009	)
Sale of investment in mutual fund Reksa Dana Seruni							—				—				—				—				—				207				—				—				207
Acquisition of Pramindo			4b				—				—				(296,038	)			—				—				—				—				—				(296,038	)
Realized difference due to change of equity in associated companies as the result of sale of 12.72% of Telkomsel			1c				—				—				—				(65,158	)			—				—				—				—				(65,158	)
Resolved during the Annual General Meeting of the Stockholders on June 21, 2002:
Declaration of cash dividends			43				—				—				—				—				—				—				—				(2,125,055	)			(2,125,055	)
Appropriation for general reserve			43				—				—				—				—				—				—				425,012				(425,012	)			—
Net income for the year							—				—				—				—				—				—				—				8,039,709				8,039,709
Balance as of December 31, 2002							5,040,000				1,073,333				(7,288,271	)			424,020				235,665				—				745,404				14,383,466				14,613,617

See accompanying notes to consolidated financial statements, which form an integral part of the
consolidated financial statements

4

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (continued)
FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

														Difference in
														value of
														restructuring				Difference
														transactions				due to change
										Additional				between				of equity																Total
						Capital				paid-in				entities under				in associated				Translation				Retained earnings								stockholders’
Description		Notes				stock				capital				common control				companies				adjustment				Appropriated				Unappropriated				equity
						Rp				Rp				Rp				Rp				Rp				Rp				Rp				Rp
Balance as of January 1, 2003							5,040,000				1,073,333				(7,288,271	)			424,020				235,665				745,404				14,383,466				14,613,617
Realized difference due to change of equity in associated companies as the result of disposal of investment in Metrosel			10				—				—				—				(38,425	)			—				—				—				(38,425	)
Foreign currency translation of CSM			2g,10				—				—				—				—				(11,433	)			—				—				(11,433	)
Resolved during the Annual General Meeting of the Stockholders on May 9, 2003
Declaration of cash dividends			43				—				—				—				—				—				—				(3,338,109	)			(3,338,109	)
Appropriation for general reserve			43				—				—				—				—				—				813,664				(813,664	)			—
Net income for the year							—				—				—				—				—				—				6,087,227				6,087,227
Balance as of December 31, 2003							5,040,000				1,073,333				(7,288,271	)			385,595				224,232				1,559,068				16,318,920				17,312,877

See accompanying notes to consolidated financial statements, which form an integral part of the
consolidated financial statements

5

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (continued)
FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004
(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

														Difference in
														value of
														restructuring				Difference
														transactions				due to change				Unrealized
										Additional				between				of equity				holding gain on																Total
						Capital				paid-in				entities under				in associated				available-for-sale				Translation				Retained earnings								stockholders’
Description		Notes				stock				capital				common control				companies				securities				adjustment				Appropriated				Unappropriated				equity
						Rp				Rp				Rp				Rp				Rp				Rp				Rp				Rp				Rp
Balance as of January 1, 2004							5,040,000				1,073,333				(7,288,271	)			385,595				—				224,232				1,559,068				16,318,920				17,312,877
Unrealized holding gain on available-for-sale securities			2g				—				—				—				—				884				—				—				—				884
Foreign currency translation of CSM			2g,10				—				—				—				—				—				5,363				—				—				5,363
Resolved during the Annual General Meeting of the Stockholders on July 30, 2004
Declaration of cash dividends			43				—				—				—				—				—				—				—				(3,043,614	)			(3,043,614	)
Appropriation for general reserve			43				—				—				—				—				—				—				121,745				(121,745	)			—
Declaration of interim cash dividends			43				—				—				—				—				—				—				—				(143,377	)			(143,377	)
Net income for the year							—				—				—				—				—				—				—				6,129,209				6,129,209
Balance as of December 31, 2004							5,040,000				1,073,333				(7,288,271	)			385,595				884				229,595				1,680,813				19,139,393				20,261,342

See accompanying notes to consolidated financial statements, which form an integral part of the
consolidated financial statements

6

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

		2002				2003				2004
		Rp				Rp				Rp				US$ (Note 3)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines			7,230,394				8,201,928				10,084,558				1,085,528
Cellular			7,098,585				8,925,503				10,497,763				1,130,007
Joint operation schemes			1,577,976				1,195,563				547,487				58,933
Interconnection — net			1,697,073				4,203,802				5,766,444				620,715
Other services			1,132,077				3,932,084				6,663,500				717,277
Total cash receipts from operating revenues			18,736,105				26,458,880				33,559,752				3,612,460
Cash payments for operating expenses			(5,800,470	)			(8,861,797	)			(12,270,643	)			(1,320,844	)
Cash generated from operations			12,935,635				17,597,083				21,289,109				2,291,616
Interest received			480,288				369,982				321,677				34,626
Income tax paid			(1,914,895	)			(3,905,317	)			(4,132,359	)			(444,818	)
Interest paid			(900,660	)			(1,178,332	)			(1,348,919	)			(145,201	)
Cash receipt (refund) from/to customers and advances			264,105				(30,884	)			(78,028	)			(8,399	)
Net Cash Provided by Operating Activities			10,864,473				12,852,532				16,051,480				1,727,824
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investments and maturity of time deposits			1,497,883				1,895,199				285,264				30,707
Proceeds from sale of property, plant and equipment			204,008				255,750				67,196				7,233
Purchase of marketable securities and placements in time deposits			(2,222,175	)			(679,500	)			(404,268	)			(43,516	)
Sale of 12.72% of Telkomsel			3,948,945				—				—				—
Payment for cross-ownership transactions			(2,406,309	)			—				—				—
Acquisition of businesses, net of cash acquired			(243,561	)			141,985				(27,797	)			(2,992	)
Acquisition of property, plant and equipment			(6,625,292	)			(9,007,186	)			(8,568,862	)			(922,375	)
Payment of advances for the purchase of property, plant and equipment			—				—				(1,063,382	)			(114,465	)
Decrease in advances and others			71,569				96,830				123,026				13,243
Payments of advances for investments in shares of stock			(230,223	)			(14,338	)			—				—
Acquisition of long-term investments			(37,607	)			—				(9,290	)			(1,000	)
Sale of long-term investments			—				5,398				—				—
Acquisition of intangible assets			(7,213	)			—				—				—
Net Cash Used in Investing Activities			(6,049,975	)			(7,305,862	)			(9,598,113	)			(1,033,165	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for debt issuance cost			(53,915	)			—				(2,394	)			(258	)
Proceeds from bonds			2,365,314				—				—				—
Proceeds from Medium-term Notes			—				—				1,080,000				116,254
Repayments of long-term liabilities			(2,493,738	)			(1,536,941	)			(5,963,659	)			(641,944	)
Repayments of promissory notes			(771,066	)			(1,513,064	)			(1,637,917	)			(176,310	)
Cash dividends paid			(2,327,458	)			(3,738,586	)			(3,811,591	)			(410,290	)
(Increase) decrease in escrow accounts			(126,848	)			(224,219	)			485,866				52,300
Redemption of Telkomsel’s notes			—				(160,509	)			(504,101	)			(54,263	)
Proceeds from borrowings			737,495				995,903				3,448,931				371,252
Net Cash Used in Financing Activities			(2,670,216	)			(6,177,416	)			(6,904,865	)			(743,259	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			2,144,282				(630,746	)			(451,498	)			(48,600	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			(89,425	)			26,148				213,149				22,944
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR			3,644,213				5,699,070				5,094,472				548,382
CASH AND CASH EQUIVALENTS AT END OF YEAR			5,699,070				5,094,472				4,856,123				522,726

See accompanying notes to consolidated financial statements, which form an integral part of
the consolidated financial statements.

7

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

		2002				2003				2004
		Rp				Rp				Rp				US$ (Note 3)
SUPPLEMENTAL CASH FLOW INFORMATION
Noncash investing and financing activities:
Increase in property under construction through the incurrence of long-term debt			480,756				536,248				—				—
Payment of insurance premium through the incurrence of long-term debt			—				81,186				11,658				1,255
Conversion of receivables to long-term investments			—				13,500				—				—
Acquisition of subsidiary through the issuance of Promissory Notes			3,329,004				927,273				—				—
Acquisition of minority interest through the issuance of Promissory Notes			—				—				126,692				13,637
Acquisition of business through the incurrence of long-term liability			—				—				3,257,566				350,653

See accompanying notes to consolidated financial statements which are an integral part of
the consolidated financial statements.

8

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2004 AND 2005

(Amounts in millions, except share data)

						2004				2005
		Notes				Rp				Rp				US$ (Note 3)
ASSETS
CURRENT ASSETS
Cash and cash equivalents			2c,2f,5,47				5,168,914				6,180,470				651
Temporary investments			2c,2g,47				—				46,220				5
Trade accounts receivable			2c,2h,6,47
Related parties — net of allowance for doubtful accounts of Rp82,804 in 2004, and Rp99,523 in 2005							676,908				678,393				72
Third parties — net of allowance for doubtful accounts of Rp413,726 in 2004 and Rp508,301 in 2005							2,895,600				3,200,061				337
Other accounts receivable — net of allowance for doubtful accounts of Rp55,737 in 2004 and Rp14,553 in 2004			2c,2h,47				38,150				54,731				6
Inventories — net of allowance for obsolescence of Rp40,414 in 2004 and Rp56,940 in 2005			2i,7				177,598				172,343				18
Prepaid expenses			2c,2j,8,47				643,390				995,512				105
Prepaid taxes			41a				90,654				68,605				7
Other current assets			2c,9,47				40,534				44,455				5
Total Current Assets							9,731,748				11,440,790				1,206
NON-CURRENT ASSETS
Long-term investments — net			2g,10				136,741				85,389				9
Property, plant and equipment — net of accumulated depreciation of Rp26,497,621 in 2004 and Rp30,879,083 in 2005			2k,2l,11				36,307,769				39,732,501				4,189
Property, plant and equipment under revenue-sharing arrangements — net of accumulated depreciation of Rp809,772 in 2004 and Rp668,053 in 2005			2m,12,50				286,914				468,293				49
Prepaid pension cost			2q,44				233,563				69,387				7
Advances and other non-current assets			2c,13,47				288,645				1,432,433				151
Goodwill and other intangible assets — net of accumulated amortization of Rp1,182,787 in 2004 and Rp2,075,572 in 2005			1c,2d,14				5,843,560				5,181,887				546
Advance payments for investment in shares of stock			4f				65,458				—				—
Escrow account			15				250,409				59,325				6
Total Non-current Assets							43,413,059				47,029,215				4,957
TOTAL ASSETS							53,144,807				58,470,005				6,163

See accompanying notes to consolidated financial statements, which form an integral part of
the consolidated financial statements.

9

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2004 AND 2005

(Amounts in millions, except share data)

						2004				2005
		Notes				Rp				Rp				US$ (Note 3)
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade accounts payable			2c,16,47
Related parties							623,367				951,699				100
Third parties							2,331,355				2,780,341				293
Other accounts payable							61,188				133,142				14
Taxes payable			2s,41b				714,840				1,276,180				134
Dividends payable							11,799				62,690				7
Accrued expenses			2c,17,47				1,775,433				1,757,707				185
Unearned income			18				755,059				1,089,655				115
Advances from customers and suppliers			19				427,791				413,855				44
Short-term bank loans			2c,20,47				1,037,644				1,109,153				117
Current maturities of long-term liabilities			2c,21,47				2,358,319				3,043,517				321
Total Current Liabilities							10,096,795				12,617,939				1,330
NON-CURRENT LIABILITIES
Deferred tax liabilities — net			2s,41e				3,515,565				3,063,582				323
Unearned income on revenue-sharing arrangements			2m,13,50				111,184				333,842				35
Unearned initial investor payments under joint operation scheme			2n,34,49				28,497				19,330				2
Provision for long service award			2r,45				512,954				584,720				62
Provision for post-retirement health care benefits			2r,46				2,007,930				1,857,813				196
Provision for other post-retirement benefits							11,402				21,677				2
Long-term liabilities — net of current maturities
Two-step loans — related party			2c,22,47				6,495,522				5,241,761				553
Notes and bonds			23				1,761,501				1,596,167				168
Bank loans			2c,24,47				2,138,446				2,026,238				213
Liabilities for acquisition of business			25				3,766,407				3,592,182				379
Suppliers’ credit loans			26				680				—				—
Bridging loan			27				517				—				—
Other long-term debt							9,378				—				—
Total Non-current Liabilities							20,359,983				18,337,312				1,933
MINORITY INTEREST IN NET ASSETS OF SUBSIDIARIES			28				3,724,385				5,549,979				585
EQUITY
Capital stock — Rp250 par value per Series A Dwiwarna share and Series B share
Authorized — one Series A Dwiwarna share and 79,999,999,999 Series B shares
Issued and fully paid — one Series A Dwiwarna share and 20,159,999,279 Series B shares			29				5,040,000				5,040,000				531
Additional paid-in capital			30				1,073,333				1,073,333				113
Difference in value of restructuring transactions between entities under common control			31				(7,288,271	)			(7,288,271	)			(768	)
Difference due to change of equity in associated companies			2g				385,595				385,595				41
Unrealized loss on decline in value of securities			2e				—				1,290				—
Translation adjustment							224,232				229,595				24
Retained earnings
Appropriated							1,559,068				1,680,813				177
Unappropriated							17,969,687				20,842,420				2,197
Total Equity							18,963,644				21,964,775				2,315
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY							53,144,807				58,470,005				6,163

See accompanying notes to consolidated financial statements, which form an integral part of
the consolidated financial statements.

10

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

(Amounts in millions, except share and per ADS data)

						2004				2005
		Notes				Rp				Rp				US$ (Note 3)
OPERATING REVENUES
Telephone			2p,32
Fixed lines							2,628,041				2,727,068				287
Cellular							2,449,493				3,019,873				318
Interconnection			2p,33,47				1,335,802				1,848,186				195
Joint operation schemes			2n,34,49				94,807				166,746				18
Data and Internet			35				1,009,452				1,419,869				150
Network			36				120,726				108,955				11
Revenue-sharing arrangements			2m,37,50				59,173				29,897				3
Other telecommunications services							58,801				26,299				3
Total Operating Revenues							7,756,295				9,346,893				985
OPERATING EXPENSES
Personnel			38				1,384,220				2,067,943				218
Depreciation			2k,2l,2m,11,12				1,500,998				1,559,218				164
Operations, maintenance and telecommunication services			39				955,204				1,268,444				134
General and administrative			40				532,423				577,012				61
Marketing							166,096				179,621				19
Total Operating Expenses							4,538,941				5,652,238				596
OPERATING INCOME							3,217,354				3,694,655				389
OTHER INCOME (CHARGES)
Gain on sale of long-term investment in Telkomsel							—				—				—
Interest income			47				53,799				57,295				6
Interest expense			47				(333,734	)			(312,807	)			(33	)
Gain (loss) on foreign exchange — net			2e				(50,470	)			(176,382	)			(19	)
Equity in net income (loss) of associated companies			2g,10				18				2,778				—
Others — net							113,820				129,027				14
Other income (charges) — net							(216,567	)			(300,089	)			(32	)
INCOME BEFORE TAX							3,000,787				3,394,566				357
TAX EXPENSE			2s,41e
Current tax							(946,668	)			(1,347,588	)			(142	)
Deferred tax							31,007				288,500				30
							(915,661	)			(1,059,088	)			(112	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES							2,085,126				2,335,478				245
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			28				(434,359	)			(632,451	)			(67	)
NET INCOME							1,650,767				1,703,027				178
BASIC EARNINGS PER SHARE			2t,42
Net income per share							81.88				84.48				0.01
Net income per ADS (40 Series B shares per ADS)							3,275.33				3,379.14				0.36

See accompanying notes to consolidated financial statements, which form an integral part of
the consolidated financial statements.

11

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

(Amounts in millions)

														Difference in
														value of
														restructuring				Difference due								Unrealized
														transactions				to change								gain
										Additional				between				of equity								on decline in												Total
						Capital				paid-in				entities under				in associated				Translation				value of				Retained earnings								stockholders’
Description		Notes				stock				capital				common control				companies				adjustments				securities				Appropriated				Unappropriated				equity
						Rp				Rp				Rp				Rp				Rp				Rp				Rp				Rp				Rp
Balance as of January 1, 2005							5,040,000				1,073,333				(7,288,271	)			385,595				229,595				884				1,680,813				19,139,393				20,261,342
Unrealized gain on decline in value of securities							—				—				—				—				—				406				—				—				406
Net income for the year							—				—				—				—				—				—				—				1,703,027				1,703,027
Balance as of March 31, 2005							5,040,000				1,073,333				(7,288,271	)			385,595				229,595				1,290				1,680,813				20,842,420				21,964,775

See accompanying notes to consolidated financial statements, which form an integral part of the
consolidated financial statements

12

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (continued)
FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005
(Amounts in millions)

														Difference in
														value of
														restructuring				Difference
														transactions				due to change								Unrealized
										Additional				between				of equity								loss on												Total
						Capital				paid-in				entities under				in associated				Translation				investment				Retained earnings								stockholders’
Description		Notes				stock				capital				common control				companies				adjustments				in securities				Appropriated				Unappropriated				equity
						Rp				Rp				Rp				Rp				Rp				Rp				Rp				Rp				Rp
Balance as of January 1, 2004							5,040,000				1,073,333				(7,288,271	)			385,595				224,232				—				1,559,068				16,318,920				17,312,877
Net income for the year							—				—				—				—				—				—				—				1,650,767				1,650,767
Balance as of March 31, 2004							5,040,000				1,073,333				(7,288,271	)			385,595				224,232				—				1,559,068				17,969,687				18,963,644

See accompanying notes to consolidated financial statements, which form an integral part of the
consolidated financial statements

13

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

(Amounts in millions)

		2004				2005
		Rp				Rp				US$ (Note 3)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues Telephone and interconnection — net
Fixed lines			2,455,558				2,677,841				288
Cellular			2,066,558				3,019,537				326
Joint operation scheme			79,687				239,204				26
Interconnection — net			1,534,187				1,727,858				186
Other services			874,718				1,545,020				166
Total cash receipts from operating revenues			7,010,708				9,209,460				992
Cash payments for operating expenses			(2,220,604	)			(2,824,119	)			(304	)
Cash generated from operations			4,790,104				6,385,341				688
Interest received			54,190				57,492				6
Income tax payments			(1,873,559	)			(1,800,340	)			(194	)
Interest paid			(315,641	)			(190,894	)			(21	)
Cash receipt (refund) from/to customers and advances			84,489				135,425				15
Net Cash Provided by Operating Activities			2,739,583				4,587,024				494
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment			2,719				5,312				1
Purchase of marketable securities and placements in time deposits			—				(25,865	)			(3	)
Acquisition of businesses, net of cash acquired			—				168,171				18
Acquisition of property, plant and equipment			(1,489,239	)			(2,583,361	)			(278	)
Decrease in advances and others			112,021				66,945				7
Net Cash Used in Investing Activities			(1,374,499	)			(2,368,798	)			(255	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment for debt issuance cost			(520,234	)			(1,039,143	)			(112	)
Repayments of promissory notes			(1,582,618	)			—				—
Cash dividends paid			8,019				—				—
Increase in escrow accounts			(271,738	)			(23,045	)			(2	)
Receipts from loan			1,159,706				299,867				32
Net Cash Used in Financing Activities			(1,206,865	)			(762,321	)			(82	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			158,219				1,455,905				157
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			13,015				(131,559	)			(14	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR			4,997,680				4,856,124				523
CASH AND CASH EQUIVALENTS AT END OF YEAR			5,168,914				6,180,470				666

See accompanying notes to consolidated financial statements, which form an integral part of
the consolidated financial statements.

14

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004
(Amounts in millions)

		2002				2003				2004
		Rp				Rp				Rp				US$ (Note 3)
SUPPLEMENTAL CASH FLOW INFORMATION
Noncash investing and financing activities:
Increase in property under construction through the incurrence of long-term debts			480,756				536,248				3,184,874				343
Increase in intangible assets through incurrence of long term debt			—				—				1,047,980				113
Payment of insurance premium through the incurrence of long-term debts			—				81,186				11,658				1
Increase in property and equipment through lease liabilities			—				—				—				—
Capitalization of borrowing costs during construction:
Losses (gains) on foreign exchange, net			(27,568	)			—				74,283				8
Interest			20,108				22,925				57,690				6
Conversion of receivables to long-term investments			—				13,500				—				—
Acquisition of subsidiary through the issuance of Promissory Notes			3,329,004				927,273				—				—

See accompanying notes to consolidated financial statements, which are an integral part of
the consolidated financial statements.

15