6-K 1 u92528e6vk.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, 2005

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

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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 9, 2005		By		/s/ Rochiman Sukarno
				(Signature)
				ROCHIMAN SUKARNO
				Head of Investor Relation

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				FULL YEAR 2004 RESULTS
				(Audited)
				Date: May 6, 2005
				No: C.TEL 138/PR110/UHI/2005
				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. 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: TKIA   JSX: TLKM

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

Shares in issues
20,159,999,280 shares as of 28 Sept 2004 after stock split 1:2

Major Shareholders
Govt. of Indonesia: 51.19%
Public: 48.81%

Conversion Rates (US$ 1.00)
2003 =Rp.8,440 (Dec 31, 2003)
2004 =Rp.9,290 (Dec 31, 2004)

FINANCIAL HIGHLIGHTS

				FY-03					FY-04					Growth
	Key Indicators			(Rp. Bn)					(Rp. Bn)					(%)
Operating Revenues					27,116					33,948					25.2
Operating Expenses					15,140					20,021					32.2
Operating Income					11,976					13,927					16.3
EBITDA					17,486					21,238					21.5
Net Income					6,087					6,129					0.7
Net Income/share (Rp)					301.95					304.03					0.7
Net Income/ADS (Rp)					12,077.83					12,161.13					0.7
EBITDA Margin (%)					64.5	%				62.6	%				-1.9	%

OPERATIONAL HIGHLIGHTS

	Description			Unit					FY-03					FY-04					Growth (%)
TELKOM
LIS Wireline					(000	)				8,214					8,559					4.2
LIS Wireless					(000	)				265					1,429					439.8
	Total				(000	)				8,479					9,989					17.8
TELKOMSEL
Customer:
Postpaid					(000	)				1,007					1,328					31.9
Prepaid					(000	)				8,582					11,558					34.7
KARTU As					(000	)				—					3,405					—
	Total				(000	)				9,589					16,291					69.9

HIGHLIGHTS

Ø	EBITDA Margin consolidated remains strong at 62.6%
Ø	TelkomFlexi has covered 192 cities with 1,139 BTS
Ø	TIC-007 market share reached 25%
Ø	Telkomsel still dominates the cellular market with 54% subscriber market share and more than 60% revenues share
Ø	Telkomsel’s subscriber reached 16.3 mn at the end of FY04

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PT. TELEKOMUNIKASI INDONESIA, Tbk.
ANNOUNCEMENT FOR THE YEAR END 2004 RESULTS
(Audited)

Jakarta, May 6, 2005 - PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), has announced its operational and audited consolidated financial statements results for the year end 2004. All financial figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP) and expressed an unqualified opinion from the Auditor.

FINANCIAL RESULTS

INCOME STATEMENT

Year ended December 31, 2004 compared to year ended December 31, 2003 :

Net Income

For the full year 2004, the Company recorded an increase in Net Income by 0.7% to Rp.6,129.2 bn.

TELKOM still maintain high growth rate in Operating Revenues by 25.2%

As a result of the amendment of the KSO agreement, TELKOM obtained the legal right to control financial and operation decision of KSO IV. Accordingly, TELKOM has accounted for this transaction as a “Business combination” using the Purchase method of accounting instead of the Revenue Sharing Arrangement (RSA) of accounting which implemented since Q1 to Q3

Operating Revenues increased by Rp. 6,831.8 bn or 25.2% compared to the same period last year, summarized as follows:

§	Data and Internet Revenues increased by Rp. 1,700.2 bn or 54.7%, mainly due to the growth in TelkomNet Instan usage by 49.5% to 2.4 bn minutes and the growth in SMS production by 56.5% to 11.0 bn, as well as the general growth in data and communications market in Indonesia (including use of frame relay, VPN and international leased line services).
§	Interconnection Revenues increased by Rp.2,025.8 bn or 48.7%, mainly due to growth in interconnection traffic by 23.3% to 11.2 mn minutes.
§	Cellular Revenues increased by Rp. 1,962.5 bn or 23.2%, mainly due to the increase in total Telkomsel’s subscriber by 69.9%
§	Fixed phone Revenues increased by Rp.1,748.2 bn or 19.6% compared to the same figure of last year, as a result of the 439.8% growth in the number of subscribers for fixed wireless, and the increase of DLD pulse production and the fixed line tariff increase. It was also contributed by Rp.969 bn from the consolidation of Regional Division IV.

Operating Expenses increased by Rp. 4,880.7 bn or 32.2%, summarized as follows :

§   Marketing Expenses increased by Rp.379.0 bn or 75.4%, mainly due to the increase in Advertising Expense as a result from aggressive marketing for new products.

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•	Operation & Maintenance Expense increased by Rp. 1,190.9 bn or 35.7%, mainly due to an increase in Telkomsel’s operations and maintenance expenses arising from the 66% growth in its overall capacity to 17.9 mn subscribers, and an increase in expenses for TELKOM and Telkomsel prepaid cards due to a substantial increase in subscribers.
•	Depreciation Expense increased by Rp. 1,659.0 bn or 34.7%, mainly resulted from additional fixed assets from Regional Division IV , new capitalization and accelerated depreciation in Telkomsel.
•	Personnel Expense increased by Rp1,130.7 bn or 25.5%, mainly due to the increase of Rp.844 bn in Pension Cost, , and an increase in basic salary and allowance of TELKOM’s employees by 8%.
•	General & Administrative Expense increased by Rp.521.0 bn or 25.1%, mainly due to additional amortization of intangible assets arising from the acquisitions of KSO IV and TMC, and the 80% increase in training, education and recruitment expenses.

EBITDA grew by 21.5%

For the year ended December 31, 2004, TELKOM recorded Operating Income of Rp.13,927.1 bn or increased by 16.3% and EBITDA of Rp. 21,238.0 bn or increased by 21.5%, compared to the same period last year

Other Charges increased by 250.8% from Rp.524.1 bn to Rp.1,838.5 bn in year end 2004, mainly due to the Loss on foreign exchange of Rp. 1,220.8 bn. This amount include forex loss arising from liabilities related to business acquisition in Regional Division IV.

CAPITAL EXPENDITURE

TELKOM’s CAPEX spending reached Rp.8,961.7 bn

TELKOM (unconsolidated)

During the year 2004, the Company has spent Rp. 8,961.7 bn for CAPEX (payment based), which consist of:

		Amount (Rp. Bn)
Infrastructure			3,049.2
Commercial services			1,028.4
Supporting services			295.6
Long Term investment			4,588.5
Total			8,961.7

TELKOMSEL

Increase in network & subscribers capacities

From January to December 2004, Telkomsel added Rp.5,000.0 bn (US$ 556 mn) to fixed-assets for network infrastructures and other investments. Cash spending on capex for the full year 2004 was Rp.5,400.0 bn (US$ 601 mn). There were 1,385 new BTS’s and 7.1 mn subscribers capacity added in 2004. Overall network capacity as of end of December 2004 was approximately 17.9 mn subscribers.

CONSOLIDATED DEBT

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

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Consolidated debt composition:

							Rp Equivalent
	Currencies			Years			(bn)			Portion (%)
IDR/ Rupiah				2003 2004			4,485.1 4,550.0			29.3 27.4
Foreign Crncy				2003 2004			10,830.6 12,066.4			70.7 72.6
Total				2003 2004			15,315.7 16,616.3			100.0 100.0

TELKOM’s DEBTs (unconsolidated)

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

							Rp Equivalent
	Currencies			Years			(bn)			Portion (%)
IDR/ Rupiah				2003 2004			4,433.3 4,527.9			34.0 30.9
Foreign Crncy				2003 2004			8,599.7 10,117.5			66.0 69.1
Total				2003 2004			13,033.0 14,645.4			100.0 100.0

TELKOM hedges its foreign currencies exposures through time deposit placement, mainly in US Dollar. As of December 31, 2004, the Company’s deposit covered approximately 4.02% of foreign debts from January 1, 2005 to December 31, 2005.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of December 31, 2004 TELKOM, including KSO VII, recorded 9.99 mn fixed lines in service, consisting of 8.56 mn fixed wireline and 1.43 mn fixed wireless.

Net additional lines in service during the full year 2004 reached the amount of 1.51 mn lines, which was higher than the figure of last year amounted to 0.73 mn lines. Penetration rate for the year 2004 was 3.82 or increased by 7.93% compared to same period last year.

Fixed-Wireless CDMA Services

During 2004, net add of LIS Flexi reached 1,16 mn lines

As of December 31, 2004, TELKOMFlexi contributed to TELKOM revenues in the amount of Rp.606.7 bn which was generated from voice, SMS, and interconnection.

TELKOMFlexi performance as of December 31, 2004 are as follows:

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TELKOM Flexi has covered 192 cities in 2004

	Descriptions			Unit			FY03					FY04					Growth(%)
	Line in service
	Classy/Postpaid			Subs				228,114					683,963					199.8
	Trendy/Prepaid			Subs				36,673					745,405					1,932.6
	Total			Subs				264,787					1,429,368					439.8
	Sales
	Classy/Postpaid			Subs				227,612					595,427					161.6
	Trendy/Prepaid			Subs				36,673					888,724					2,323.4
	Total			Subs				264,285					1,484,151					461.6
	ARPU (12 months average)
	Classy/Postpaid			Rp.(000)				154					94					(39.2	)
	Trendy/Prepaid			Rp.(000)				24					20					(16.7	)
	Blended			Rp.(000)				141					60					(57.5	)
	NETWORK
	BTS			unit				396					1,139					187.6
	Number of city in service			city				38					192					405.3

TELKOM International Call 007 (TIC-007)

As of December 31, 2004, TIC-007 generated revenues with the figure as follows:

	Description			Unit			Incoming					Outgoing					Total
	Traffic			mn. minutes				224.1					62.0					286.1
	Revenue			Rp. Bn				169.1					340.6					509.7

Cellular Services

Telkomsel still dominates cellular market

Telkomsel is the largest mobile communication company in Indonesia with 54% subscriber’s market share and total subscribers of 16.3 mn as of 31 December 2004.

Data and Internet Services

SMS is key driver of the growth

As of December 31, 2004, the total access to TELKOMNet Instan connectivity amounted to 2,389.2 mn minutes or increased by 49.5% from the same period last year. Meanwhile, the use of TELKOMSave and TELKOMGlobal access through VoIP respectively amounted 11.4 mn minutes and 59.8 mn minutes or increased by 9.6% and 18.5%, respectively. The total number of Telkomsel’s SMS production increased by 56.5% to 11.0 mn SMS.

HUMAN RESOURCES

Early retirement program is still continued

As of December 31, 2004, the total number of TELKOM’s (as a single entity) employees was 29,375 persons consisting of 25,823 persons in TELKOM Regions and 3,552 persons in KSO Region.

Productivity per employee as measured by the number of fixed lines in service per employee as of December 31, 2004 was 340 compare to 255 for 2003. During the year 2004, 1,186 employees have participated in the Company’s early retirement program, with total compensation Rp 450 bn (including tax).

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RECENT DEVELOPMENTS

INTERIM DIVIDEND FOR THE YEAR 2004

On December 8, 2004, TELKOM announced the distribution of interim dividend for the year 2004 in the amount of Rp. 7.112 (seven rupiah and one-hundred and twelve per one thousand rupiah) with nominal value of Rp.250 (two-hundred fifty rupiah) per share to all of its registered shareholders.

The interim dividend was approved based upon the result of the Company’s Financial Statement ended on September 30, 2004.

TELKOM ACQUIRE THE REMAINING 9.68% SHARE OF TOMEN AT PT DAYAMITRA TELEKOMUNIKASI

On December 14, 2004 TELKOM and TM Communication have signed a Sales and Purchase Agreement for the sales of the remaining 9.68% shares owned by TM Comm in PT Dayamitra Telekomunikasi (DMT), KSO Partner in regional division VI Kalimantan.

Payment for the shares in the amount of USD 16.2 mn will be paid on March 26, 2006 through an escrow account in Citibank Singapore. TELKOM is obligated to make a monthly payment of USD 787,390 to the escrow account starting from December 26, 2004 until March 26, 2006.

TELKOM ISSUES IDR 1.125 TRILLION MEDIUM-TERM NOTE

On December 17, 2004, TELKOM announced the issuance of IDR 1,125 bn Medium Term Notes (MTN), earmarked to refinance some of the Company’s obligation which are mostly denominated in foreign currencies. The MTN is issued through a private placement mechanism and are broken down into four tranches with maturities in June 15, 2005; December 15, 2005; June 15, 2006; and June 15, 2007, respectively.

Corporate Secretary,

ADEK JULIANWAR

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Table 1
PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2003 AND 2004

		2003				2004
		Rp. mn				Rp. mn
ASSETS
CURRENT ASSETS
Cash and cash equivalents			5,094,472				4,856,123
Temporary investments			4,006				19,949
Trade accounts receivable
Related parties - net of allowance for doubtful accounts of Rp110,932 million in 2003, and Rp64,928 million in 2004			410,923				419,104
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
Other accounts receivable - net of allowance for doubtful accounts of Rp45,544 million in 2003, and Rp9,236 million in 2004			170,121				55,769
Inventories - net of allowance for obsolescence of Rp40,489 million in 2003, and Rp54,733 million in 2004			154,003				203,085
Prepaid expenses			429,695				628,069
Prepaid taxes			212,282				77,228
Other current assets			45,083				44,608
Total Current Assets			8,942,590				9,203,934
NON-CURRENT ASSETS
Long-term investments - net			64,648				82,613
Property, plant and equipment - net of accumulated depreciation of Rp23,581,559 million in 2003, and Rp29,297,163 million in 2004			34,775,140				39,572,099
Property, plant and equipment under revenue- sharing arrangements - net of accumulated depreciation of Rp791,645 million in 2003, and Rp694,570 million in 2004			305,041				499,127
Prepaid pension benefit costs			288,222				91,262
Advances and other non-current assets			175,954				1,372,351
Goodwill and other intangible assets - net of accumulated amortization of Rp973,704 million in 2003, and Rp1,846,034 million in 2004			5,144,050				5,411,425
Advance payments for investments in shares of stock			65,458				—
Escrow accounts			522,146				36,281
Total Non-current Assets			41,340,659				47,065,158
TOTAL ASSETS			50,283,249				56,269,092

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Table 1 (continued)
PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2003 AND 2004

		2003				2004
		Rp. mn				Rp. mn
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade accounts payable
Related parties			657,478				643,094
Third parties			3,109,854				3,611,456
Other accounts payable			187,938				5,073
Taxes payable			1,513,038				1,592,479
Dividends payable			3,779				62,689
Accrued expenses			1,185,210				1,051,366
Unearned income			763,211				1,030,000
Advances from customers and suppliers			268,148				278,430
Short-term bank loans			37,642				1,101,633
Current maturities of long-term liabilities			3,443,516				2,300,822
Total Current Liabilities			11,169,814				11,677,042
NON-CURRENT LIABILITIES
Deferred tax liabilities — net			3,546,770				3,352,171
Unearned income on revenue-sharing arrangements			111,732				360,332
Unearned initial investor payments under joint operation schemes			31,584				20,453
Provision for long service awards			491,037				572,303
Provision for post-retirement benefits			2,063,524				1,841,146
Accrued pension and other post-retirement benefits costs			13,239				32,007
Long-term liabilities — net of current maturities
Two-step loans — related party			6,858,910				5,363,283
Notes and bonds			2,102,502				2,331,465
Bank loans			2,115,797				1,775,799
Liabilities of business acquisitions			746,974				3,743,317
Suppliers’ credit loans			671				—
Bridging loan			510				—
Other long-term debt			9,153				—
Total Non-current Liabilities			18,092,403				19,392,276
MINORITY INTEREST			3,708,155				4,938,432
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			5,040,000				5,040,000
Additional paid-in capital			1,073,333				1,073,333
Difference in value of restructuring transactions between entities under common control			(7,288,271	)			(7,288,271	)
Difference due to change of equity in associated companies			385,595				385,595
Unrealized holding gain on available-for-sale securities			—				884
Translation adjustment			224,232				229,595
Retained earnings
Appropriated			1,559,068				1,680,813
Unappropriated			16,318,920				19,139,393
Total Stockholders’ Equity			17,312,877				20,261,342
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			50,283,249				56,269,092

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Table 2
PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2004

		2003				2004
		Rp. mn				Rp. mn
OPERATING REVENUES
Telephone
Fixed lines			8,896,865				10,645,021
Cellular			8,458,830				10,421,298
Interconnection			4,162,148				6,187,981
Joint operation schemes			1,486,307				656,614
Data and Internet			3,108,562				4,808,742
Network			517,865				654,309
Revenue-sharing arrangements			258,464				280,576
Other telecommunications services			226,882				293,225
Total Operating Revenues			27,115,923				33,947,766
OPERATING EXPENSES
Personnel			4,440,096				5,570,778
Depreciation			4,779,520				6,438,557
Operations, maintenance and telecommunication services			3,338,693				4,529,587
General and administrative			2,078,777				2,599,847
Marketing			502,898				881,930
Total Operating Expenses			15,139,984				20,020,699
OPERATING INCOME			11,975,939				13,927,067
OTHER INCOME (CHARGES)
Gain on sale of long-term investment in Telkomsel			—				—
Interest income			366,024				317,941
Interest expense			(1,383,446	)			(1,270,136	)
Gain (loss) on foreign exchange - net			126,121				(1,220,760	)
Equity in net income of associated companies			2,819				3,420
Others - net			364,338				331,050
Other income (charges) - net			(524,144	)			(1,838,485	)
INCOME BEFORE TAX			11,451,795				12,088,582
TAX EXPENSE
Current tax			(3,791,280	)			(4,267,111	)
Deferred tax			(69,810	)			264,039
			(3,861,090	)			(4,003,072	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			7,590,705				8,085,510
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES, net			(1,503,478	)			(1,956,301	)
NET INCOME			6,087,227				6,129,209
BASIC EARNINGS PER SHARE 1)
Net income per share (Rp)			301.95				304.03
Net income per ADS (Rp) (40 Series B shares per ADS)			12,077.83				12,161.13

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Table 3
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

		2003				2004
		Rp. mn				Rp. mn
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines			8,201,928				10,084,558
Cellular			8,925,503				10,497,763
Joint operation schemes			1,195,563				547,487
Interconnection - net			4,203,802				5,766,444
Other services			3,932,084				6,663,500
Total cash receipts from operating revenues			26,458,880				33,559,752
Cash payments for operating expenses			(8,861,797	)			(12,270,643	)
Cash generated from operations			17,597,083				21,289,109
Interest received			369,982				321,677
Income tax paid			(3,905,317	)			(4,132,359	)
Interest paid			(1,178,332	)			(1,348,919	)
Cash receipt (refund) from/to customers and advances			(30,884	)			(78,028	)
Net Cash Provided by Operating Activities			12,852,532				16,051,480
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investments and maturity of time deposits			1,895,199				285,264
Proceeds from sale of property, plant and equipment			255,750				67,196
Purchase of marketable securities and placements in time deposits			(679,500	)			(404,268	)
Sale of 12.72% of Telkomsel			—				—
Payment for cross-ownership transactions			—				—
Acquisition of businesses, net of cash acquired			141,985				(27,797	)
Acquisition of property, plant and equipment			(9,007,186	)			(8,568,862	)
Payment of advances for the purchase of property, plant and equipment			—				(1,063,382	)
Decrease in advances and others			96,830				123,026
Payments of advances for investments in shares of stock			(14,338	)			—
Acquisition of long-term investments			—				(9,290	)
Sale of long-term investments			5,398				—
Acquisition of intangible assets			—				—
Net Cash Used in Investing Activities			(7,305,862	)			(9,598,113	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for debt issuance cost			—				(2,394	)
Proceeds from bonds			—				—
Proceeds from Medium-term Notes			—				1,080,000
Repayments of long-term liabilities			(1,536,941	)			(5,963,659	)
Repayments of promissory notes			(1,513,064	)			(1,637,917	)
Cash dividends paid			(3,738,586	)			(3,811,591	)
(Increase) decrease in escrow accounts			(224,219	)			485,866
Redemption of Telkomsel’s notes			(160,509	)			(504,101	)
Proceeds from borrowings			995,903				3,448,931
Net Cash Used in Financing Activities			(6,177,416	)			(6,904,865	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(630,746	)			(451,498	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			26,148				213,149
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR			5,699,070				5,094,472
CASH AND CASH EQUIVALENTS AT END OF YEAR			5,094,472				4,856,123

10

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Table 4
FINANCIAL RATIOS FOR THE YEAR ENDED DECEMBER 31, 2003 & 2004

		2003				2004				Growth (%)
1		2				3				4=(3-2)/2
Contribution of pulses to total fixed-phone revenue:
Local Calls (%)			26.45				30.01				3.57
Domestic Long Distance Calls (%)			47.27				39.87				(7.40	)
Monthly subscription charges (%)			21.94				27.57				5.63
Installation charges (%)			2.51				1.89				(0.62	)
Phone-card			0.39				0.15				(0.24	)
Others (%)			1.45				0.51				(0.94	)
Contribution to total operating revenues:
Cellular (%)			31.20				30.70				(0.50	)
Fixed-phone (%)			32.76				31.36				(1.40	)
Revenue under JOS (%)			5.53				1.93				(3.60	)
Interconnection (%)			14.84				18.23				3.38
Network (%)			2.41				1.93				(0.49	)
Data dan internet (%)			11.46				14.17				2.70
Revenue under RSA (%)			0.95				0.83				(0.13	)
Other telecommunications services (%)			0.84				0.86				0.03
Average Fixed Phone Revenue (ARPU) per user/month (Rp)			163,612				177,571				8.53
EBITDA (Rp mn)			17,486,118				21,237,954				21.46
EBITDA margin (%)			64.49				62.56				(1.93	)
Operating margin (%)			44.17				41.02				(3.14	)
Profit Margin (%)			22.45				18.05				(4.31	)
Current ratio (%)			80.06				78.82				(1.24	)
Return on Assets (%)			12.11				10.89				(1.22	)
Return on Equity (%)			35.16				30.25				(4.91	)
Total Liabilities to Equity (%)			169.02				153.34				(15.68	)
Gearing (Net Debt to Equity) (%)			58.80				52.51				(6.29	)
Debt to Equity (%)			88.25				76.57				(11.68	)
Debt to EBITDA (%)			87.37				73.05				(14.32	)
Debt Service Ratio (Times)			3.6				5.9				2.31
EBITDA to Interest Expense (times)			12.6				16.7				4.08
EBITDA to Net Debt (%)			171.8				199.6				27.85

11

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Table 5
FIXED TELEPHONE LINE
AS OF DECEMBER 31, 2003 and 2004

																		GROWTH
						2003								2004				( % )
1		2				3a				3b				4				5=(4-3b)/3b
Exchange Capacity TELKOM Division
Wireline		Lines					7,810,766				8,581,055				8,786,887				2.40	%
Wireless		Lines					666,050				666,050				1,952,644				193.17	%
TELKOM Division		Lines					8,476,816				9,247,105				10,739,531				16.14	%
Exchange Capacity KSO Division
Wireline		Lines					1,608,455				838,166				954,465				13.88	%
Wireless		Lines					61,550				61,550				179,700				191.96	%
KSO Division		Lines					1,670,005				899,716				1,134,165				26.06	%
Exchange Capacity TELKOM & KSO Division
Wireline		Lines					9,419,221				9,419,221				9,741,352				3.42	%
Wireless		Lines					727,600				727,600				2,132,344				193.07	%
Total Exchange Cap. TELKOM & KSO (Wireline & Wireless)		Lines					10,146,821				10,146,821				11,873,696				17.02	%
Installed Lines TELKOM Division
Wireline		Lines					7,235,035				7,974,212				8,264,999				3.65	%
Wireless		Lines					659,497				712,847				2,309,212				223.94	%
TELKOM Division		Lines					7,894,532				8,687,059				10,574,211				21.72	%
Installed Lines KSO Division
Wireline		Lines					1,548,070				808,893				931,999				15.22	%
Wireless		Lines					116,150				62,800				176,717				181.40	%
KSO Division		Lines					1,664,220				871,693				1,108,716				27.19	%
Installed Lines TELKOM & KSO Division
Wireline		Lines					8,783,105				8,783,105				9,196,998				4.71	%
Wireless		Lines					775,647				775,647				2,485,929				220.50	%
Total Installed Lines TELKOM & KSO (Wireline & Wireless)		Lines					9,558,752				9,558,752				11,682,927				22.22	%
Subscribers TELKOM Division
Wireline		Lines					6,441,973				7,079,532				7,323,304				3.44	%
Wireless		Lines					237,200				237,200				1,313,978				453.95	%
TELKOM Division		Lines					6,679,173				7,316,732				8,637,282				18.05	%
Subscribers KSO Division
Wireline		Lines					1,365,114				727,555				816,208				12.19	%
Wireless		Lines					27,038				27,038				111,695				313.10	%
KSO Division		Lines					1,392,152				754,593				927,903				22.97	%
Subscribers TELKOM & KSO Division
Wireline		Lines					7,807,087				7,807,087				8,139,512				4.26	%
Wireless		Lines					264,238				264,238				1,425,673				439.54	%
Total Subscribers -TELKOM & KSO Division (Wireline & Wireless)		Lines					8,071,325				8,071,325				9,565,185				18.51	%
Public Phone TELKOM Division
Wireline		Lines					350,327				381,029				391,673				2.79	%
Wireless		Lines					549				549				3,695				573.04	%
TELKOM Division		Lines					350,876				381,578				395,368				3.61	%
Public Phone KSO Division
Wireline		Lines					56,914				26,212				28,165				7.45	%
Wireless		Lines					—				—				—				0.00	%
KSO Division		Lines					56,914				26,212				28,165				7.45	%
Public Phone TELKOM & KSO Division
Wireline		Lines					407,241				407,241				419,838				3.09	%
Wireless		Lines					549				549				3,695				573.04	%
Total Public Phone TELKOM & KSO Division (Wireline & Wireless)		Lines					407,790				407,790				423,533				3.86	%
Lis Fixed TELKOM Division
Wireline		Lines					6,792,300				7,460,561				7,714,977				3.41	%
Wireless		Lines					237,749				237,749				1,317,673				454.23	%
TELKOM Division		Lines					7,030,049				7,698,310				9,032,650				17.33	%
Lis Fixed KSO Division
Wireline		Lines					1,422,028				753,767				844,373				12.02	%
Wireless		Lines					27,038				27,038				111,695				313.10	%
KSO Division		Lines					1,449,066				780,805				956,068				22.45	%
Lis Fixed TELKOM & KSO Division
Wireline		Lines					8,214,328				8,214,328				8,559,350				4.20	%
Wireless		Lines					264,787				264,787				1,429,368				439.82	%
Total Lines In Services TELKOM & KSO Division		Lines					8,479,115				8,479,115				9,988,718				17.80	%

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

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Table 6

PULSE PRODUCTION
AS OF DECEMBER 31, 2003 and 2004

																		GROWTH
					2003									2004				( % )
1		2				3 a				3b				4				5=(4-3)/3
Production :
Subscriber -TELKOM Division
Wireline		Pulses					50,847,568,131				55,657,861,311				58,313,938,481				4.77	%
Wireless (exclude data & sms)							214,407,400				214,407,400				59,345,925,249
Total Subscriber Production - TELKOM Division		Pulses					51,061,975,531				55,872,268,711
Subscriber -KSO Division
Wireline		Pulses					11,413,258,296				6,602,965,116				6,838,280,419				3.56	%
Wireless (exclude data & sms)							4,221,250				4,221,250				7,526,023,968
Total Subscriber Production - KSO Division		Pulses					11,417,479,546				6,607,186,366
Subscriber TELKOM & KSO Division
Wireline		Pulses					62,260,826,427				62,260,826,427				65,152,218,900				4.64	%
Wireless (exclude data & sms)							218,628,650				218,628,650				66,871,949,217
Total Subscriber Production - TELKOM & KSO Division		Pulses					62,479,455,077				62,479,455,077
Public Phone -TELKOM Division
Wireline		Pulses					13,795,904,238				15,907,818,683				13,850,294,140				-12.93	%
Wireless (exclude data & sms)							2,444,370				2,444,370				1,849,564,741
Total Public Phone Production - TELKOM Division		Pulses					13,798,348,608				15,910,263,053
Public Phone - KSO Division
Wireline		Pulses					4,463,141,925				2,351,227,479				2,328,265,664				-0.98	%
Wireless (exclude data & sms)							—				—				164,375,078
Total Public Phone Production - KSO Division		Pulses					4,463,141,925				2,351,227,479
Public Phone - TELKOM & KSO Division
Wireline		Pulses					18,259,046,162				18,259,046,162				16,178,559,804				-11.39	%
Wireless (exclude data & sms)							2,444,370				2,444,370				2,013,939,819
Total Public Phone Production - TELKOM & KSO Division		Pulses					18,261,490,532				18,261,490,532
Lines in Services - Production
Wireline		Pulses					80,519,872,590				80,519,872,590				81,330,778,704				1.01	%
Wireless (exclude data & sms)							221,073,020				221,073,020				68,885,889,036
Total LIS’s Pulse Production TELKOM & KSO Division		Pulses					80,740,945,609				80,740,945,609
Productivity Per Average Subscriber Line
Wireline		Pulses/Line					8,222				8,222				8,171				-0.61	%
Wireless (* 2003 Pulse/Line, 2004 Second/Line)							1,603				1,603				79,143
Pulses Per Avrg,Subscr,Line ( TELKOM & KSO Division )		Pulses/Line					8,104				8,104
Productivity Per Average LIS
Wireline		Pulses/Line					10,093				10,093				9,697				-3.92	%
Wireless							1,618				1,618				96,386
Pulses Per Average LIS ( TELKOM & KSO Division )		Pulses/Line					9,950				9,950				—

Wireless production : 2003 (pulsa), 2004		Column 3a		Column 3b		Column 4
(second)		TELKOM Division includes :		TELKOM Division includes :		TELKOM Division includes :
		Regional Division - I Sumatera		Regional Division - I Sumatera		Regional Division - I Sumatera
		Regional Division - II Jakarta		Regional Division - II Jakarta		Regional Division - II Jakarta
		Regional Division - III West Java		Regional Division - III West Java		Regional Division - III West Java
		Regional Division - V East Java		Regional Division - IV Central Java		Regional Division - IV Central Java
		Regional Division - VI kalimantan		Regional Division - V East Java		Regional Division - V East Java
				Regional Division - VI kalimantan		Regional Division - VI kalimantan

13

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Table 7
PT. TELKOMSEL
BALANCE SHEETS
AS OF DECEMBER 31, 2003 AND 2004

		2003				2004
		Rp. Mn				Rp. Mn				Growth
CURRENT ASSETS
Cash and cash equivalents			1,696,751				2,958,606				74	%
Short-term investment			—				44,955				—
Acct. receivable - net of allow. for doubtful acct.			197,093				191,763				-3	%
Accrued income			370,063				436,300				18	%
Inventories			49,365				93,113				89	%
Prepayments			296,629				328,766				11	%
Claim for tax refund			37,045				39,413				—
Others			28,445				5,705				-80	%
Total Current Assets			2,675,391				4,098,621				53	%
LONG-TERM INVESTMENT			—				9,290				—
PROPERTY, PLANT AND EQUIPMENT
Fixed assets			16,536,443				21,004,836				27	%
Work in progress			212,245				216,370				2	%
Accumulated depreciation			(4,053,567	)			(6,254,176	)			-54	%
PPE - Net Book Value			12,695,121				14,967,030				18	%
OTHER ASSETS
Advances			—				439,257				—
Others			39,350				34,557				-12	%
Total Other Assets			39,350				473,814				1104	%
TOTAL ASSETS			15,409,862				19,548,755				27	%
CURRENT LIABILITIES
Accounts payable			221,060				107,625				-51	%
Accrued liabilities			1,101,910				1,257,606				14	%
Taxes payable			548,043				615,602				12	%
Unearned income			729,170				995,702				37	%
Curr. maturities of long-term loan			190,215				329,486				73	%
Total Current Liabilities			2,790,398				3,306,021				18	%
NON-CURRENT LIABILITIES
Deferred tax liabilities			497,703				745,839				50	%
Long term loan - net of current maturities			665,753				841,741				26	%
Guaranteed notes - net			1,121,224				736,174				-34	%
Others			23,716				41,583				75	%
Total Non-current Liabilities			2,308,396				2,365,337				2	%
EQUITY
Capital stock - Rp 1,000,000 par value
Authorized - 650,000 shares
Issued and fully paid - 182,570 shares			182,570				182,570				0	%
Additional paid-in capital			1,504,854				1,504,854				0	%
Retained earnings			8,623,644				12,189,973				41	%
Total Equity			10,311,068				13,877,397				35	%
TOTAL LIAB. & STOCKHOLDERS’ EQUITY			15,409,862				19,548,755				27	%

14

Table of Contents

Table 8
PT. TELKOMSEL
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2004

		2003				2004
		Rp. Mn				Rp. Mn				Growth
OPERATING REVENUES
Post-paid			3,453,077				3,699,561				7	%
Prepaid			7,200,385				10,283,277				43	%
International roaming			387,833				429,618				11	%
Interconnection revenues (outpayment) - net			104,826				352,626				236	%
Total Operating Revenues			11,146,121				14,765,082				32	%
OPERATING EXPENSES
Personnel			406,678				486,928				20	%
Operation & maintenance			1,652,626				1,984,134				20	%
General & administrative			383,824				577,495				50	%
Marketing & selling			181,708				355,829				96	%
Rev. dependent & other cost of services			494,881				689,132				39	%
Depreciation and amortization			1,680,553				2,651,028				58	%
Total Operating Expenses			4,800,270				6,744,546				41	%
EBIT (EARNINGS BEFORE INTEREST & TAXES)			6,345,851				8,020,536				26	%
OTHER INCOME/(CHARGES)
Interest income/(expenses)			(126,863	)			(99,461	)			22	%
Foreign exchange gain/(loss)			(73,017	)			(62,029	)			15	%
Others - net			(16,300	)			(26,102	)			-60	%
Other income/(charges) - net			(216,180	)			(187,592	)			13	%
INCOME BEFORE TAX			6,129,671				7,832,944				28	%
PROVISION FOR INCOME TAX			1,892,821				2,359,965				25	%
NET INCOME			4,236,850				5,472,979				29	%
EBITDA			8,026,404				10,671,564				33	%
EBITDA MARGIN			72	%			72	%			0	%

15

Table of Contents

Table 9
PT. TELKOMSEL
OPERATIONAL INDICATORS AS OF DEC 31, 2003 & 2004

		Unit		2003				2004				Growth
CUSTOMER BASE
Net Additions
kartuHALO		Subscriber (000)			84				321				282	%
simPATI		Subscriber (000)			3,494				2,976				-15	%
KARTU As		Subscriber (000)			—				3,405				—
Total		Subscriber (000)			3,578				6,702				87	%
Customer base
kartuHALO		Subscriber (000)			1,007				1,328				32	%
simPATI		Subscriber (000)			8,582				11,558				35	%
KARTU As		Subscriber (000)			—				3,405				—
Total		Subscriber (000)			9,589				16,291				70	%
ARPU
Total (12 months average)
kartuHALO		Rp.'000 per mo.			314				304				-3	%
simPATI		Rp.'000 per mo.			95				84				-12	%
KARTU As		Rp.'000 per mo.			—				48				—
Blended		Rp.'000 per mo.			123				102				-17	%
Non-voice/SMS (12 months average)
kartuHALO		Rp.'000 per mo.			30				41				37	%
simPATI		Rp.'000 per mo.			23				23				0	%
KARTU As		Rp.'000 per mo.			—				17				—
Blended		Rp.'000 per mo.			23								-100	%
Blended		Rp.'000 per mo.			24				24				0	%
AERPU (net revenues/average subscribers/12)		Rp.'000 per mo.			119				95				-20	%
SMS
# messages/sub/month kartuHALO		message			113				130				15	%
# messages/sub/month simPATI		message			69				68				-1	%
# messages/sub/month KARTU As		message			—				35				—
NETWORK DATA
Network capacity
Base stations installed		Unit			4,820				6,205				29	%
Overall capacity all network elements		Subs. '000			10,800				17,900				66	%
Quality of service
Call success rate		%			94.62	%			95.19	%			0.57	%
Call completion rate		%			99.19	%			99.26	%			0.07	%
EMPLOYEE DATA
Total employees		person			2,869				3,331				16	%
Efficiency ratio		Subs/employee			3,342				4,891				46	%

16

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk., and SUBSIDIARIES
Breakdown of the Statement of Income (Audited)
For the Year Ended December 31, 2003 and 2004

		2003				2004				Growth
		(Rp. Million)				(Rp. Million)				(%)
1		2				3				4 = (3-2)/2
OPERATING REVENUE
Fixed Lines (wireline + wireless)
Local			2,349,449				3,194,977				35.99
Long distance			4,212,351				4,244,333				0.76
Monthly subscription charges			1,948,830				2,934,899				50.60
Instalation charges			223,130				201,313				(9.78	)
Phone cards			34,371				15,561				(54.73	)
Others			128,734				53,938				(58.10	)
Total Fixed lines Revenues			8,896,865				10,645,021				19.65
Cellular			8,458,830				10,421,298				23.20
Interconnection
Cellular			3,908,292				5,351,613				36.93
International			184,097				641,210				248.30
Other			69,759				195,158				179.76
Total Interconnection Revenues			4,162,148				6,187,981				48.67
Joint Operation Scheme Revenues			1,486,307				656,614				(55.82	)
Data and Internet
SMS			2,205,058				3,562,726				61.57
Multimedia			494,747				813,330				64.39
VoIP			328,284				318,854				(2.87	)
ISDN			80,473				113,832				41.45
Total Data and Internet Revenues			3,108,562				4,808,742				54.69
Network
Leased lines			247,005				443,408				79.51
Satellite transponder lease			270,860				210,901				(22.14	)
Total Network Revenues			517,865				654,309				26.35
Revenue Sharing Arrangement Revenues			258,464				280,576				8.56
Other Telecommunications Services (OTS)
Directory assistance			218,008				282,464				29.57
Others			8,874				10,761				21.28
Total OTS Revenues			226,882				293,225				29.24
TOTAL OPERATING REVENUES			27,115,923				33,947,766				25.19
OPERATING EXPENSES
Personnel			4,440,096				5,570,778				25.47
Depreciation			4,779,520				6,438,557				34.71
Operation, maintenance and telecommunications services
Operations and maintenance			1,744,806				2,398,159				37.45
Cost of phone cards			181,272				366,661				102.27
Lisence (Concession fees & radio frequency usage charges)			610,719				807,309				32.19
Electricity, gas and water			300,432				385,662				28.37
Insurance and Others			501,464				571,796				14.03
Total O & M			3,338,693				4,529,587				35.67
General and administrative
Provision for doubtful accounts and inventory obsolescence			326,419				357,695				9.58
Training, education and recruitment			126,927				228,524				80.04
Research, development and consultant			124,708				150,581				20.75
Collection expenses			273,767				358,957				31.12
Amortization of Intangible assets			730,659				872,330				19.39
Others			496,297				631,760				27.29
Total G & A			2,078,777				2,599,847				25.07
Marketing			502,898				881,930				75.37
TOTAL OPERATING EXPENSES			15,139,984				20,020,699				32.24
OPERATING INCOME			11,975,939				13,927,067				16.29

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk., and SUBSIDIARIES
Breakdown of the Statements of Income Audited (Continued)
For the Year Ended December 31, 2003 and 2004

		2003				2004				Growth
		(Rp. Million)				(Rp. Million)				(%)
1		2				3				4 = (3-2)/2
OPERATING INCOME			11,975,939				13,927,067				16.29
OTHER INCOME (CHARGES)
Interest income			366,024				317,941				(13.14	)
Interest expense			(1,383,446	)			(1,270,136	)			(8.19	)
Gain (loss) on foreign exchange - net			126,121				(1,220,760	)			(1,067.93	)
Equity in net income (loss) of associated companies			2,819				3,420				21.31
Income from supporting activities			169,444				112,504				(33.60	)
Others - net			194,894				218,547				12.14
Total Other Income (Charges) - net			(524,144	)			(1,838,485	)			250.76
INCOME BEFORE TAX			11,451,795				12,088,582				5.56
TAX EXPENSE			(3,861,090	)			(4,003,072	)			3.68
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			7,590,705				8,085,510				6.52
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			(1,503,478	)			(1,956,301	)			30.12
NET INCOME			6,087,227				6,129,209				0.69
NET INCOME PER SHARE (FULL AMOUNT)			301.95				304.03				0.69
NET INCOME PER ADS (40 SERIES B SHARE PER ADS) (FULL AMOUNT)			12,077.83				12,161.13				0.69

Table of Contents

			First Quarter 2005 Results
			(Unaudited)
			Date : May 6, 2005
			No: C.TEL 139/PR110/UHI/2005
			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. 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 : TKIA            JSX : TLKM

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

Shares in issues
20,159,999,280 shares

Major Shareholders
Govt. of Indonesia : 51.19%
Public : 48.81%

Conversion Rates (US$ 1.00)
2004 =Rp.8,565.0 (March 31, 2004)
2005 =Rp.9,471.5 (March 31, 2005)

FINANCIAL HIGHLIGHTS

				Q104					Q105					Growth
	Key Indicators			(Rp. Bn)					(Rp. Bn)					(%)
	Operating Revenues				7,756					9,347					20.5
	Operating Expenses				4,539					5,652					24.5
	Operating Income				3,217					3,695					14.8
	EBITDA				4,927					5,483					11.3
	Net Income				1,651					1,703					3.2
	Net Income/share (Rp)				81.88					84.48					3.2
	Net Income/ADR (Rp)				3,275.33					3,379.14					3.2
	EBITDA Margin (%)				63.5	%				58.7	%				-4.9	%

OPERATIONAL HIGHLIGHTS

	Description			Unit					Q104					Q105					Growth (%)
	TELKOM
	LIS Wireline				(000	)				8,308					8,611					3.6
	LIS Wireless				(000	)				422					1,844					337.4
	Total				(000	)				8,729					10,455					19.8
	TELKOM
	Customer:
	Postpaid				(000	)				1,033					1,374					33.0
	Prepaid				(000	)				9,710					12,102					24.6
	KARTU As				(000	)				—					4,391					—
	Total				(000	)				10,743					17,867					66.3

HIGHLIGHTS

	§	During the 1Q-05, 1,017 TELKOM’s employees have participated in the early retirement program, with total compensation of Rp 512 bn (excluding tax)
	§	TELKOMFlexi’s subscribers grew by 337%, covering 216 cities
	§	Total TELKOM’s subscribers (fixed wireline and wireless) reached 10.5 mn
	§	Telkomsel remains as a market leader with 55% market share

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PT. TELEKOMUNIKASI INDONESIA, Tbk.
ANNOUNCEMENT FOR THE FIRST QUARTER 2005 RESULTS
(Un-audited)

Jakarta, May 6, 2005 - PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), has announced its audited consolidated financial statements and operational results for the first quarter 2005. All figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP).

FINANCIAL RESULTS

Profit and Loss Statement

Revenues contribution :

Financial results as of March 31, 2005 compared to the same period ended March 31, 2004:

Operating Revenues increased by Rp. 1,590.6 bn or 20.5% compared to the same period last year, summarized as follows:

§   Data and Internet Revenues increased by Rp. 410.4 bn or 40.7% compared to the same figure of last year, mainly due to the growth in TelkomNet Instan usage by 144.7% to 1.3 bn minutes and growth in SMS production by 51.4% to 3.5 bn.

§   Interconnection Revenues increased by Rp.512.4 bn or 38.4% compared to the same figure of last year, mainly due to the growth in cellular subscribers, long distance usage and international traffic.

§   Cellular Revenues increased by Rp. 570.4 bn or 23.3% compared to the same figure of last year, mainly due to the increase in total Telkomsel’s subscribers by 66.3%.

§   Fixed phone Revenues increased by Rp.99.0 bn or 3.8% compared to the same figure of last year, mainly due to the growth in LIS wireline by 3.6%.

Operating Expenses increased by Rp. 1,113.3 bn or 24.5%, summarized as follows:

§   Personnel Expense increased by Rp.683.7 or 49.4%, mainly due to the increase in early retirement cost from Rp.380 mn in 1Q-04 to Rp.511 bn in 1Q-05.

§   Operation & Maintenance Expense increased by Rp. 313.2 bn or 32.8%, mainly due to the increase in Concession fees and Radio Frequency charges as a result from the increase in BTS and RBS.

§   General & Administrative, Marketing and Depreciation Expenses increased slightly by 8.4%, 8.1% and 3.9%, respectively.

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As of the period ended March 31, 2005, TELKOM recorded Operating Income of Rp.3,694.7 bn or increased by 14.8% compared to the same period last year and EBITDA of Rp. 5,483.4 bn or increased by 11.3%.

Other Charges increased by 38.6% from Rp.216.6 bn to Rp.300.1 bn in 1Q-05, mainly due to the Loss on Foreign Exchange.

Net Income

For the first quarter 2005, the Company recorded an increase in Net Income by 3.2% to Rp.1,703.0 bn.

CAPITAL EXPENDITURE

For the year 2005, TELKOM group budgeted Rp 13,708.9 bn on CAPEX, primarily consisting of Rp 6,140.7 bn for TELKOM and approximately USD 650-750 mn for TELKOMSEL.

TELKOM (unconsolidated)

During the first quarter 2005, the Company has spent Rp.286.1 bn for CAPEX (payment based), which consist of:

		Amount (Rp. Bn)
Infrastructure			258.1
Commercial services			16.2
Supporting services			11.8
Long Term investment			—
Total			286.1

TELKOMSEL

From January to March 2005, Telkomsel added Rp.1,170.0 bn (US$126 mn) to fixed-assets for network infrastructures and other investments. Cash spending on capex for 1Q-05 was Rp.1,170.0 bn (US$ 126 mn). There were 731 new BTS’s installed and 1.7 mn subscribers capacity added in 1Q-05. Overall network capacity as of end of March 2005 was approximately 19.6 mn subscribers.

CONSOLIDATED DEBT

As of March 31, 2005, breakdown of debt portfolio (short-term and long-term) in foreign currencies and Rupiah equivalents were as follows:

Consolidated debt composition:

									Rp Equivalent
	Currencies			Years					(bn)						Portion (%)
	IDR/ Rupiah				2004					4,124.8					28.5
					2005					4,688.6					28.2
	Foreign Crncy				2004					10,323.7					71.5
					2005					11,920.4					71.8
	Total				2004					14,448.5					100.0
					2005					16,609.0					100.0

TELKOM’s DEBTs (unconsolidated)

As of March 31, 2005, breakdown of debt portfolio (short-term and long-term) in original currencies and Rupiah equivalents were as follows:

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									Rp Equivalent
	Currencies			Years					(bn)					Portion
	IDR/ Rupiah				2004					4,062.0					33.1
					2005					4,508.2					30.3
	Foreign Crncy				2004					8,207.7					66.9
					2005					10,372.6					69.7
	Total				2004					12,269.7					100.0
					2005					14,880.8					100.0

TELKOM hedges its foreign currencies exposures through time deposit placement, mainly in US Dollar. As of March 31, 2005, the Company’s deposit covered approximately 1.36% of foreign debts from April 1, 2005 to March 31, 2006.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of March 31, 2005, TELKOM including KSO VII, recorded 10.45 mn fixed lines in service, consisting of 8.61 mn of wire-lines and 1.84 mn of fixed-wireless.

Net additional lines in service during the 1Q-05 reached 0.47 mn lines, which was higher than the figure of the 1Q-04 of 0.25 mn lines.

Fixed-Wireless CDMA Services

Flexi still recorded high growth in LIS(337.8%)

As of March 31, 2005, TELKOMFlexi contributed Rp.381.4 bn to TELKOM revenues, mainly generated from voice, SMS, and interconnection.

TELKOMFlexi performances as of March 31, 2005 are as follows:

	Descriptions			Unit					Q104					Q105					Growth(%)
	Line in service
	Classy/Postpaid			Subs						335,453					765,612					128.2
	Trendy/Prepaid			Subs						85,635					1,078,077					1,158.9
	Total			Subs						421,088					1,843,689					337.8
	Sales
	Classy/Postpaid			Subs						128,597					155,835					21.2
	Trendy/Prepaid			Subs						48,961					542,715					1,008.5
	Total			Subs						177,558					698,550					293.4
	ARPU (3 months average)
	Classy/Postpaid			Rp.(000)						183					134					(26.8	)
	Trendy/Prepaid			Rp.(000)						32					33					2.2
	Blended			Rp.(000)						153					78					(49.1	)
	NETWORK
	BTS			unit						412					1,256					204.9
	Number of city in service			city						43					216					402.3

TELKOM International Call 007 (TIC-007)

As of March 31, 2005, TIC-007 generated revenues Rp. 158 bn with the figure as follows:

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	Description			Unit					Incoming					Outgoing					Total
	Traffic			mn. minutes						82.5					33.8					116.3
	Revenue			Rp. bn						61.0					97.0					158.0

Cellular Services

Telkomsel subscriber’s market share reached 55%

Telkomsel is the largest mobile communication company in Indonesia with 55% subscriber’s market share and total subscribers of 17.9 mn at the end of March 2005.

Data and Internet Services

As of March 31, 2005, the total access to TELKOMNet Instan connectivity amounted to 1,318 mn minutes or increased by 144.7% from the same period last year. Meanwhile, the total of Telkomsel’s SMS production increased by 51.4% to 3.53 bn SMS.

HUMAN RESOURCES

Total compensation for early retirement program during 1Q-05 amount Rp 512 bn (excluding tax)

As of March 31, 2005, the total number of TELKOM’s (as a single entity) employees was 28,420 persons, consisting of 25,097 persons in TELKOM Regions and 3,323 persons in KSO Region.

Productivity per employee as measured by the number of fixed lines in service per employee as of March 31, 2005 was 356 compare to 287 for 2004.

During the 1Q-05, 1,017 TELKOM’s employees have participated in early retirement program, with total compensation of Rp 512 bn (excluding tax).

RECENT DEVELOPMENTS

Implementation of DLD Access Code

On April 1, 2005, the Ministry of Communication and Information have issued Release no. 92/M.Kominfo/2005 regarding Implementation of Domestic Long Distance (DLD) Access Code. TELKOM is ready to implement interconnection and open Indosat’s DLD access code in several location as mentioned in the Release after reaching technical and business arrangements formulated under Interconnection Agreement between both parties.

Buy Back of Telkomsel’s Guaranteed Notes.

Telkomsel has per April 30^th 2005 executed the call option (at 102.5%) for the full remaining outstanding amount of the Guaranteed Notes issued in 2002. The Notes have effectively been called and settled on May 4^th and the re-called Notes will be cancelled.

Corporate Secretary,

ADEK JULIANWAR

5

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Table 1
PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2004 AND 2005

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

6

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Table 1 (continued)
PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2004 AND 2005

		2004				2005
		Rp. mn				Rp. mn
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade accounts payable
Related parties			623,367				951,699
Third parties			2,331,355				2,780,341
Other accounts payable			61,188				133,142
Taxes payable			714,840				1,276,180
Dividends payable			11,799				62,690
Accrued expenses			1,775,433				1,757,707
Unearned income			755,059				1,089,655
Advances from customers and suppliers			427,791				413,855
Short-term bank loans			1,037,644				1,109,153
Current maturities of long-term liabilities			2,358,319				3,043,517
Total Current Liabilities			10,096,795				12,617,939
NON-CURRENT LIABILITIES
Deferred tax liabilities - net			3,515,565				3,063,582
Unearned income on revenue-sharing arrangements			111,184				333,842
Unearned initial investor payments under joint operation scheme			28,497				19,330
Provision for long service award			512,954				584,720
Provision for post-retirement health care benefits			2,007,930				1,857,813
Provision for other post-retirement benefits			11,402				21,677
Long-term liabilities - net of current maturities
Two-step loans - related party			6,495,522				5,241,761
Notes and bonds			1,761,501				1,596,167
Bank loans			2,138,446				2,026,238
Liabilities for acquisition of business			3,766,407				3,592,182
Suppliers’ credit loans			680				—
Bridging loan			517				—
Other long-term debt			9,378				—
Total Non-current Liabilities			20,359,983				18,337,312
MINORITY INTEREST IN NET ASSETS OF SUBSIDIARIES			3,724,385				5,549,979
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			5,040,000				5,040,000
Additional paid-in capital			1,073,333				1,073,333
Difference in value of restructuring transactions between entities under common control			(7,288,271	)			(7,288,271	)
Difference due to change of equity in associated companies			385,595				385,595
Unrealized loss on decline in value of securities			—				1,290
Translation adjustment			224,232				229,595
Retained earnings
Appropriated			1,559,068				1,680,813
Unappropriated			17,969,687				20,842,420
Total Equity			18,963,644				21,964,775
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			53,144,807				58,470,005

7

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Table 2
PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

		2004				2005
		Rp. mn				Rp. mn
OPERATING REVENUES
Telephone
Fixed lines			2,628,041				2,727,068
Cellular			2,449,493				3,019,873
Interconnection			1,335,802				1,848,186
Joint operation schemes			94,807				166,746
Data and Internet			1,009,452				1,419,869
Network			120,726				108,955
Revenue-sharing arrangements			59,173				29,897
Other telecommunications services			58,801				26,299
Total Operating Revenues			7,756,295				9,346,893
OPERATING EXPENSES
Personnel			1,384,220				2,067,943
Depreciation			1,500,998				1,559,218
Operations, maintenance and telecommunication services			955,204				1,268,444
General and administrative			532,423				577,012
Marketing			166,096				179,621
Total Operating Expenses			4,538,941				5,652,238
OPERATING INCOME			3,217,354				3,694,655
OTHER INCOME (CHARGES)
Gain on sale of long-term investment in Telkomsel			—				—
Interest income			53,799				57,295
Interest expense			(333,734	)			(312,807	)
Gain (loss) on foreign exchange - net			(50,470	)			(176,382	)
Equity in net income (loss) of associated companies			18				2,778
Others - net			113,820				129,027
Other income (charges) - net			(216,567	)			(300,089	)
INCOME BEFORE TAX			3,000,787				3,394,566
TAX EXPENSE
Current tax			(946,668	)			(1,347,588	)
Deferred tax			31,007				288,500
			(915,661	)			(1,059,088	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			2,085,126				2,335,478
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			(434,359	)			(632,451	)
NET INCOME			1,650,767				1,703,027
BASIC EARNINGS PER SHARE
Net income per share -Rp			81.88				84.48
Net income per ADS-Rp (40 Series B shares per ADS)			3,275.33				3,379.14

8

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Table 3
PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIOD ENDED MARCH 31, 2004 AND 2005

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

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Table 4
FINANCIAL RATIOS AS OF MARCH 31, 2004 and 2005

		2004				2005				Growth (%)
1		2				3				4=(3-2)/2
Contribution of pulses to total fixed-phone revenue:
Local Calls (%)			26.14				30.99				4.85
Domestic Long Distance Calls (%)			48.19				35.73				(12.47	)
Monthly subscription charges (%)			22.71				29.29				6.59
Installation charges (%)			2.10				1.85				(0.25	)
Phone-card			0.15				0.09				(0.06	)
Others (%)			0.71				2.05				1.34
Contribution to total operating revenues:
Cellular (%)			31.58				32.31				0.73
Fixed-phone (%)			33.88				29.18				(4.71	)
Revenue under JOS (%)			1.22				1.78				0.56
Interconnection (%)			17.22				19.77				2.55
Network (%)			1.56				1.17				(0.39	)
Data dan internet (%)			13.01				15.19				2.18
Revenue under RSA (%)			0.76				0.32				(0.44	)
Other telecommunications services (%)			0.76				0.28				(0.48	)
Average Fixed Phone Revenue per user/month			171,782				165,936				(3.40	)
EBITDA (Rp million) *)			4,927,435				5,483,411				11.28
EBITDA margin (%)			63.53				58.67				(4.86	)
Operating margin (%)			41.48				39.53				(1.95	)
Profit Margin (%)			21.28				18.22				(3.06	)
Current ratio (%)			96.38				90.88				(5.50	)
Return on Assets (%)			3.11				2.91				(0.19	)
Return on Equity (%)			8.70				7.74				(0.96	)
Total Liabilities to Equity (%)			160.61				140.61				(19.99	)
Gearing (Net Debt to Equity) (%)			64.07				46.94				(17.13	)
Debt to Equity (%)			92.64				75.52				(17.13	)
Debt to EBITDA (%)			356.54				302.90				(53.65	)
Debt Service Ratio (Times)			1.3				1.2				(0.09	)
EBITDA to Interest Expense (times)			14.8				17.5				2.77
EBITDA to Net Debt (%)			40.6				53.1				12.56

10

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Table 5
FIXED TELEPHONE LINE
AS OF MARCH, 2004 and 2005

						2003				2004				Growth (%)
1		2				3				4				5=(4-3)/3
Exchange Capacity TELKOM Division
Wireline		Lines					8,580,788				8,852,419				3.17	%
Wireless		Lines					713,150				1,952,644				173.81	%
Total Exchange Cap. TELKOM (Wireline & Wireless)		Lines					9,293,938				10,805,063				16.26	%
Exchange Capacity KSO Division
Wireline		Lines					885,094				970,763				9.68	%
Wireless (MSC)		Lines					61,550				179,700				191.96	%
Total Exchange Cap. KSO (Wireline & Wireless)		Lines					946,644				1,150,463				21.53	%
Exchange Capacity TELKOM & KSO Division
Wireline		Lines					9,465,882				9,823,182				3.77	%
Wireless		Lines					774,700				2,132,344				175.25	%
Total Exchange Cap. TELKOM & KSO (Wireline & Wireless)		Lines					10,240,582				11,955,526				16.75	%
Installed Lines TELKOM Division
Wireline		Lines					8,055,199				8,326,801				3.37	%
Wireless		Lines					697,650				2,628,502				276.77	%
Total Installed Lines TELKOM (Wireline & Wireless)		Lines					8,752,849				10,955,303				25.16	%
Installed Lines KSO Division
Wireline		Lines					837,547				941,578				12.42	%
Wireless		Lines					61,550				199,097				223.47	%
Total Installed Lines KSO (Wireline & Wireless)		Lines					899,097				1,140,675				26.87	%
Installed Lines TELKOM & KSO Division
Wireline		Lines					8,892,746				9,268,379				4.22	%
Wireless		Lines					759,200				2,827,599				272.44	%
Total Installed Lines TELKOM & KSO (Wireline & Wireless)		Lines					9,651,946				12,095,978				25.32	%
Subscribers TELKOM Division
Wireline		Lines					7,148,307				7,368,775				3.08	%
Wireless		Lines					380,761				1,700,433				346.59	%
Total Subscribers TELKOM Division (Wireline & Wireless)		Lines					7,529,068				9,069,208				20.46	%
Subscribers KSO Division
Wireline		Lines					749,057				819,312				9.38	%
Wireless		Lines					39,732				137,620				246.37	%
Total Subscribers KSO Division (Wireline & Wireless)		Lines					788,789				956,932				21.32	%
Subscribers TELKOM & KSO Division
Wireline		Lines					7,897,364				8,188,087				3.68	%
Wireless		Lines					420,493				1,838,053				337.12	%
Total Subscribers -TELKOM & KSO Division (Wireline & Wireless)		Lines					8,317,857				10,026,140				20.54	%
Public Phone TELKOM Division
Wireline		Lines					384,410				394,224				2.55	%
Wireless		Lines					1,124				5,636				401.42	%
Total Public Phone TELKOM Division (Wireline & Wireless)		Lines					385,534				399,860				3.72	%
Public Phone KSO Division
Wireline		Lines					26,042				28,620				9.90	%
Wireless		Lines					—				—				0.00	%
Total Public Phone KSO Division (Wireline & Wireless)		Lines					26,042				28,620				9.90	%
Public Phone TELKOM & KSO Division
Wireline		Lines					410,452				422,844				3.02	%
Wireless		Lines					1,124				5,636				401.42	%
Total Public Phone TELKOM & KSO Division (Wireline & Wireless)		Lines					411,576				428,480				4.11	%
Lis Fixed TELKOM Division
Wireline		Lines					7,532,717				7,762,999				3.06	%
Wireless		Lines					381,885				1,706,069				346.75	%
Total Lines In Services TELKOM (Wireline & Wireless)		Lines					7,914,602				9,469,068				19.64	%
Lis Fixed KSO Division
Wireline		Lines					775,099				847,932				9.40	%
Wireless		Lines					39,732				137,620				246.37	%
Total Lines In Services KSO (Wireline & Wireless)		Lines					814,831				985,552				20.95	%
Lis Fixed TELKOM & KSO Division
Wireline		Lines					8,307,816				8,610,931				3.65	%
Wireless		Lines					421,617				1,843,689				337.29	%
Total Lines In Services TELKOM & KSO Division (Wireline & Wireless)		Lines					8,729,433				10,454,620				19.76	%

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 - III West Java		Regional Division - III West Java
Regional Division - IV Central Java		Regional Division - IV Central Java
Regional Division - V East Java		Regional Division - V East Java
Regional Division - VI kalimantan		Regional Division - VI kalimantan

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Table 6
PULSE PRODUCTION
AS OF MARCH 31, 2004 and 2005

						2003				2004				Growth (%)
1		2				3				4				5=(4-3)/3
Production :
Subscriber -TELKOM Division
Wireline		Pulses					14,614,945,172				14,378,079,438				-1.62	%
Wireless (exclude data & sms)		second					9,254,001,493				37,042,263,308				300.28	%
Total Subscriber Production - TELKOM (Division Wireline & Wireless)
Subscriber -KSO Division
Wireline		Pulses					1,694,413,761				2,274,620,927				34.24	%
Wireless (exclude data & sms)		second					2,485,334,449				3,916,311,810				57.58	%
Total Subscriber Production - KSO Division (Wireline & Wireless)
Subscriber TELKOM & KSO Division
Wireline		Pulses					16,309,358,933				16,652,700,365				2.11	%
Wireless (exclude data & sms)		second					11,739,335,942				40,958,575,118				248.90	%
Total Subscriber Production - TELKOM & KSO Division (Wireline & Wireless)
Public Phone -TELKOM Division
Wireline		Pulses					3,566,954,451				3,010,380,131				-15.60	%
Wireless (exclude data & sms)		second					113,374,213				1,190,442,786				950.01	%
Total Public Phone Production - TELKOM Division (Wireline & Wireless)
Public Phone - KSO Division
Wireline		Pulses					558,832,181				503,106,982				-9.97	%
Wireless (exclude data & sms)		second					2,792,503				55,077,854				1872.35	%
Total Public Phone Production - KSO Division (Wireline & Wireless)
Public Phone - TELKOM & KSO Division
Wireline		Pulses					4,125,786,632				3,513,487,113				-14.84	%
Wireless (exclude data & sms)		second					116,166,716				1,245,520,640				972.18	%
Total Public Phone Production - TELKOM & KSO Division (Wireline & Wireless)
Lines in Services - Production
Wireline		Pulses					20,435,145,564				20,166,187,478				-1.32	%
Wireless (exclude data & sms)		second					11,928,025,422				42,204,095,758				253.82	%
Total LIS’s Pulse Production TELKOM & KSO Division (Wireline & Wireless)
Productivity Per Average Subscriber Line
Wireline		Pulses/Line					2,077				2,082				0.25	%
Wireless (* 2003 Pulse/Line, 2004 Detik/Line)		second/Line					55,836				44,567				-20.18	%
Pulses Per Avrg,Subscr,Line ( TELKOM & KSO Division )
Productivity Per Average LIS
Wireline		Pulses/Line					2,474				2,397				-3.09	%
Wireless		second/Line					56,582				45,782				-19.09	%
Pulses Per Average LIS ( TELKOM & KSO Division )

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 - III West Java		Regional Division - III West Java
Regional Division - IV Central Java		Regional Division - IV Central Java
Regional Division - V East Java		Regional Division - V East Java
Regional Division - VI kalimantan		Regional Division - VI kalimantan

12

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Table 7
PT . TELKOMSEL
BALANCE SHEETS
AS OF MARCH 31, 2004 and 2005

		2004				2005
		Rp. Mn				Rp. Mn				Growth
CURRENT ASSETS
Cash and cash equivalents			2,173,547				4,215,471				94	%
Short-term investment			—				44,955				—
Acct. receivable - net of allow for doubtful acct.			243,637				262,561				8	%
Accrued income			375,715				441,439				17	%
Advances			30,673				8,345				-73	%
Inventories			16,569				67,301				306	%
Prepayments			298,422				475,455				59	%
Claim for tax refund			29,651				39,413				—
Others			7,613				—				-100	%
Total Current Assets			3,175,827				5,554,940				75	%
LONG-TERM INVESTMENT			—				9,290				—
PROPERTY, PLANT AND EQUIPMENT
Fixed assets			17,676,943				22,179,388				25	%
Work in progress			218,774				422,790				93	%
Accumulated depreciation			(4,696,132	)			(6,875,534	)			-46	%
PPE - Net Book Value			13,199,585				15,726,644				19	%
OTHER ASSETS
Advances for PPE			—				499,669				—
Others			35,039				34,445				- 2	%
Total Other Assets			35,039				534,114				1424	%
TOTAL ASSETS			16,410,451				21,824,988				33	%
CURRENT LIABILITIES
Short-term loan			—				170,000				—
Accounts payable			273,896				291,309				6	%
Accrued liabilities			1,289,191				1,432,029				11	%
Taxes payable			360,729				499,079				38	%
Unearned income			741,592				1,063,860				43	%
Guaranteed notes - net			—				751,313				—
Curr. maturities of long-term loan			191,144				326,515				71	%
Total Current Liabilities			2,856,552				4,534,105				59	%
NON-CURRENT LIABILITIES
Deferred tax liabilities			565,689				777,511				37	%
Long term loan - net of current maturities			669,003				834,682				25	%
Guaranteed notes - net			779,782				—				- 100	%
Others			—				—				—
Total Non-current Liabilities			2,014,474				1,612,193				-20	%
EQUITY
Capital stock - Rp 1,000,000 par value
Authorized - 650,000 shares
Issued and fully paid - 182,570 shares			182,570				182,570				0	%
Additional paid-in capital			1,504,854				1,504,854				0	%
Retained earnings			9,852,001				13,991,266				42	%
Total Equity			11,539,425				15,678,690				36	%
TOTAL LIAB . & STOCKHOLDERS’ EQUITY			16,410,451				21,824,988				33	%

13

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Table 8
PT. TELKOMSEL
STATEMENTS OF INCOME
AS OF MARCH 31, 2004 and 2005

		2004				2005
		Rp. Mn				Rp. Mn				Growth
OPERATING REVENUES
Post-paid			922,805				1,073,157				16	%
Prepaid			2,517,132				3,428,359				36	%
International roaming			155,685				197,363				27	%
Interconnection revenues			487,377				666,953				37	%
Gross Operating Revenues			4,082,999				5,365,832				31	%
Less:
- Dealer Discounts/Commissions			241,022				353,709				47	%
- Interconnect / Intl. roaming / Data provider Outpayment			512,352				599,884				17	%
Net Operating Revenues			3,329,625				4,412,239				33	%
OPERATING EXPENSES
Personnel			117,990				139,766				18	%
Operation & maintenance			470,152				603,434				28	%
General & administrative			125,064				126,682				1	%
Marketing & selling			73,896				91,943				24	%
Rev. dependent & other cost of services			163,050				248,811				53	%
Depreciation and amortization			642,565				621,358				-3	%
Total Operating Expenses			1,592,717				1,831,994				15	%
EBIT (EARNINGS BEFORE INTEREST & TAXES)			1,736,908				2,580,245				49	%
OTHER INCOME/(CHARGES)
Interest income & financing charges			(63,334	)			(8,725	)			86	%
Foreign exchange gain/(loss)			57,814				(10,465	)			-118	%
Others - net			8,063				12,893				60	%
Other income/(charges) - net			2,543				(6,297	)			348	%
INCOME BEFORE TAX			1,739,451				2,573,948				48	%
PROVISION FOR INCOME TAX			511,094				772,655				51	%
NET INCOME			1,228,357				1,801,293				47	%
EBITDA			2,379,473				3,201,603				35	%
EBITDA Margin - over net revenues			71	%			73	%			2	%
EBITDA Margin - over gross revenues			58	%			60	%			2	%

14

Table of Contents

Table 9
PT. TELKOMSEL
OPERATIONAL INDICATORS AS OF MARCH 31, 2004 & 2005

		Unit		2004				2005				Growth
CUSTOMER BASE
Net Additions
kartuHALO		Subscriber (000)			25				46				84	%
simPATI		Subscriber (000)			1,129				544				-52	%
KARTU As		Subscriber (000)			—				986				—
Total		Subscriber (000)			1,154				1,576				37	%
Customer base
kartuHALO		Subscriber (000)			1,033				1,374				33	%
simPATI		Subscriber (000)			9,710				12,102				25	%
KARTU As		Subscriber (000)			—				4,391				—
Total		Subscriber (000)			10,743				17,867				66	%
ARPU
Total (3 months average)
kartuHALO		Rp.'000 per mo.			327				289				-12	%
simPATI		Rp.'000 per mo.			90				79				-12	%
KARTU As		Rp.'000 per mo.			—				44				—
Blended		Rp.'000 per mo.			115				88				-23	%
Non-voice/SMS (3 months average)
kartuHALO		Rp.'000 per mo.			35				45				29	%
simPATI		Rp.'000 per mo.			24				23				-4	%
KARTU As		Rp.'000 per mo.			—				15				—
Blended		Rp.'000 per mo.			25				19				-24	%
Effective ARPU (net booked revenues / average subs /)		Rp. '000 per mo.			109				86				-21	%
SMS
# messages/sub/month kartuHALO		message			123				137				11	%
# messages/sub/month simPATI		message			71				66				-7	%
# messages/sub/month KARTU As		message			—				58				—
NETWORK DATA
Network capacity
Base stations installed		Unit			5,118				6,936				36	%
Overall capacity all network elements		Subs. '000			12,000				19,600				63	%
Quality of service
Call success rate		%			96.02	%			95.35	%			-0.67	%
Call completion rate		%			99.29	%			99.25	%			-0.04	%
EMPLOYEE DATA
Total employees		person			3,001				3,391				13	%
Efficiency ratio		Subs/employee			3,580				5,269				47	%

15

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk., and SUBSIDIARIES
Breakdown of the Statement of Income
For the Three month Ended March 31, 2004 and 2005

		2004				2005				Growth
		(Rp. Million)				(Rp. Million)				(%)
1		2				3				4 = (3-2)/2
OPERATING REVENUE
Fixed Lines (wireline + wireless)
Local			687,052				845,195				23.02
Long distance			1,266,507				974,265				(23.07	)
Monthly subscription charges			596,705				798,860				33.88
Instalation charges			55,308				50,520				(8.66	)
Phone cards			3,926				2,415				(38.49	)
Others			18,543				55,813				200.99
Total Fixed lines Revenues			2,628,041				2,727,068				3.77
Cellular			2,449,493				3,019,873				23.29
Interconnection
Cellular			1,185,434				1,555,099				31.18
International			114,704				254,000				121.44
Other			35,664				39,087				9.60
Total Interconnection Revenues			1,335,802				1,848,186				38.36
Joint Operation Scheme Revenues			94,807				166,746				75.88
Data and Internet
SMS			748,642				1,071,497				43.13
VoIP			146,305				246,730				68.64
Multimedia			88,544				54,649				(38.28	)
ISDN			25,961				46,993				81.01
Total Data and Internet Revenues			1,009,452				1,419,869				40.66
Network
Leased lines			69,089				56,531				(18.18	)
Satellite transponder lease			51,637				52,424				1.52
Total Network Revenues			120,726				108,955				(9.75	)
Revenue Sharing Arrangement Revenues			59,173				29,897				(49.48	)
Other Telecommunications Services (OTS)
Directory assistance			56,250				24,292				(56.81	)
Others			2,551				2,007				(21.35	)
Total OTS Revenues			58,801				26,299				(55.27	)
TOTAL OPERATING REVENUES			7,756,295				9,346,893				20.51
OPERATING EXPENSES
Personnel			1,384,220				2,067,943				49.39
Depreciation			1,500,998				1,559,218				3.88
Operation, maintenance and telecommunications services
Operations and maintenance			446,211				599,234				34.29
Cost of phone cards			83,302				133,878				60.71
Lisence (Concession fees & radio frequency usage charges)			196,613				279,682				42.25
Electricity, gas and water			91,901				99,371				8.13
Insurance and Others			137,177				156,278				13.92
Total O & M			955,204				1,268,444				32.79
General and administrative
Provision for doubtful accounts and inventory obsolescence			98,348				119,359				21.36
Training, education and recruitment			32,833				27,382				(16.60	)
Research, development and consultant			26,457				15,973				(39.63	)
Collection expenses			49,600				80,351				62.00
Amortization of Intangible assets			209,083				229,538				9.78
Others			116,102				104,409				(10.07	)
Total G & A			532,423				577,012				8.37
Marketing			166,096				179,621				8.14
TOTAL OPERATING EXPENSES			4,538,941				5,652,238				24.53
OPERATING INCOME			3,217,354				3,694,655				14.84

Table of Contents

PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk., and SUBSIDIARIES
Breakdown of the Statements of Income (Continued)
For the Three month Ended March 31, 2004 and 2005

		2004				2005				Growth
		(Rp. Million)				(Rp. Million)				(%)
1		2				3				4 = (3-2)/2
OPERATING INCOME			3,217,354				3,694,655				14.84
OTHER INCOME (CHARGES)
Interest income			53,799				57,295				6.50
Interest expense			(333,734	)			(312,807	)			(6.27	)
Gain (loss) on foreign exchange - net			(50,470	)			(176,382	)			249.48
Equity in net income (loss) of associated companies			18				2,778				15,568.24
Income from supporting activities			47,144				44,005				(6.66	)
Others - net			66,676				85,022				27.51
Total Other Income (Charges) - net			(216,567	)			(300,089	)			38.57
INCOME BEFORE TAX			3,000,787				3,394,566				13.12
TAX EXPENSE			(915,661	)			(1,059,088	)			15.66
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			2,085,126				2,335,478				12.01
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			(434,359	)			(632,451	)			45.61
NET INCOME			1,650,767				1,703,027				3.17
NET INCOME PER SHARE (FULL AMOUNT)			81.88				84.48				3.17
NET INCOME PER ADS (40 SERIES B SHARE PER ADS) (FULL AMOUNT)			3,275.33				3,379.14				3.17