PT TELEKOMUNIKASI

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 November, 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):

TABLE OF CONTENTS


SIGNATURES

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 November 10, 2005	By	/s/ Rochiman Sukarno (Signature)

		ROCHIMAN SUKARNO
		Head of Investor Relation

INFOMEMO
Third Quarter
2005

The Third Quarter of 2005 Results

(Unaudited)
Date : November 10, 2005
No: C.TEL395/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 does 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 9,160.0 (Sept’30, 2004)
2005 =Rp 10,300.0 (Sept 30’ 2005)

TELKOM Financial Indicators – 3Q05
(in trillion Rp)

Fixed line LIS vs Cellular Subscribers

FINANCIAL HIGHLIGHTS (consolidated


	3Q04		3Q05		Growth
Key Indicators	(Rp. Bn)		(Rp. Bn)		(%)

Operating Revenues		25,095		30,154		20.2
Operating Expenses		14,400		17,359		20.5
Operating Income (EBIT)		10,695		12,795		19.6
EBITDA		15,827		18,424		16.4
Net Income (NI)		4,856		5,782		19.1

Operating Margin (%)		42.6		42.4		(0.2	)
EBITDA Margin (%)		63.1		61.1		(2.0	)
Net Income Margin (%)		19.3		19.2		(0.2	)
Earnings per Share (EPS)		240.8		286.8		19.1
Price to Earnings (P/E)		11.8		18.7		57.7

OPERATIONAL HIGHLIGHTS


	Net Add (in 000)				Growth			Total				Growth
Description	2Q05		3Q05		3Q/2Q			3Q04		3Q05		(%)

TELKOM
*LIS Wireline		24		68		181			8,509		8,651		2
LIS Wireless		1,614		678		(58	)		1,083		3,722		244
Total		1,638		746		(54	)		9,592		12,372		29

TELKOMSEL
Customer:
HALO		52		101		94			1,271		1,428		12
simPATI		1,671		3,270		96			10,874		14,827		36
KARTU As		1,958		3,822		95			1,547		7,228		367
Total		3,681		7,193		95			13,692		23,483		72


*)		LIS (Line in Service) = Subscribers + Public Phone

NOTABLE FIGURES

	§		Net Income consolidated has increased by 19%

	§		The ratio of TELKOM’s US denomination debt to the total consolidated debt has declined from 62% to 59%

	§		The total number of Lines in Service (LIS) for fixed wireless (Flexi) grew by 244%, covering 229 cities

	§		As of September 30, 2005, LIS of Speedy has reached 24K

	§		Telkomsel kept its position as a market leader with 54% of market share and 23.5 million subscribers

PT. TELEKOMUNIKASI INDONESIA, Tbk.

ANNOUNCEMENT FOR THE THIRD QUARTER 2005
RESULTS (Unaudited)

Jakarta, November 10, 2005 - PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), has announced its audited consolidated financial statements and operational results for the third 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

Financial results as of September 30, 2005 compared to the same period last year:

Revenues contrbution 3Q/05

Operating Revenues increased by Rp 5,058.7 billion or 20.2%, summarized as follows:

Cellular Revenues increased by Rp 2,247.8 billion or 29.2%, mainly due to the increase in the total number of prepaid (SimPATI & KARTU As) and post-paid (HALO) customers by 78% and 12%, respectively.

Data and Internet Revenues increased by Rp 1,500.0 billion or 44.7%, mainly due to the 19.4% growth in TelkomNet Instan usage to 34.8 million hours.

Interconnection Revenues increased by Rp 1,151.8 billion or 26.7%, mainly due to the 27.2% growth in net interconnection revenues from mobile cellular interconnection and the increased usage in international interconnections.

International Revenues (TIC-007) increased by Rp 226.3 billion or 420.0%, mainly due to the 26.8% growth in outgoing traffic and 78.3% in incoming traffic.

Meanwhile Fixed line revenues slightly decline by 4% due to the 6% declining in long distance pulse production.

Expenses contribution 3Q/05

Operating Expenses increased by Rp 2,958.8 billion or 20.5%, summarized as follows:

Operation and Maintenance Expenses increased by Rp 1,124.4 billion or 33.2%, mainly due to the increase in Telkomsel’s operation and maintenance expenses as well as an increase in concession fees and radio frequency charges as a result of an increase in the number of BTS and RTX. Moreover, the growth in cost of phone cards (Telkomsel and TELKOMFlexi prepaid cards) and contribution Universal Service Obligation (USO) since January 2005.

Personnel Expenses increased by Rp 1,087.5 billion or 26.8%, mainly due to an early retirement program in the first quarter 2005, as well as an increase in employees’ income tax by 68.8% to Rp 641.5 billion.

Depreciation Expenses increased by Rp 457.8 billion or 10.2%, as a result of new installations of fixed assets.

General and Administrative expenses increased by Rp 214.7 billion or 11.7%, mainly due to the increase in provision for doubtful accounts and inventory obsolescence.

As of the period ended September 30, 2005, TELKOM has recorded Operating Income of Rp 12,794.7 billion, an increase of 19.6% compared to the same period last year. TELKOM’s EBITDA has also increased by 16.4% to Rp 18,424.0 billion.

Other Charges decreased by 18.0% to Rp 1,182.3 billion as of September 30, 2005, mainly due to the decrease in the Interest Expense.

Net Income

For the third quarter of 2005, the Company has recorded an increase in Net Income of 19.1% to Rp 5,781.6 billion.

CAPITAL EXPENDITURE

TELKOM (unconsolidated)

As of September 30, 2005, the Company has spent Rp1,261.4 billion for CAPEX (payment based), with breakdown as follows:


	Amount (Rp. Bn)
Infrastructure		760.7
Commercial services		375.8
Supporting services		124.9

Total		1,261.4

TELKOMSEL

From January to September 2005, the Company added Rp4.55 trillion fixed-assets, mostly used for network capacity addition, coverage expansion, and quality enhancement. Cash spending on CAPEX for the 3Q05 was Rp 5.45 trillion. There were 2,812 new BTS’s installed, and 7.2 million subscribers capacity added in 3Q05. Overall network capacity at the end of September 30, 2005 was approximately 25.1 million.

CONSOLIDATED DEBT

As of September 30, 2005, TELKOM’s debt portfolio (short-term and long-term) in foreign currencies and in Indonesian Rupiah equivalents was as follows:

Consolidated debt composition

3Q/2004

3Q/2005


	Original (in million)				Rp (in billion)				Portion (%)
Currencies	3Q04		3Q05		3Q04		3Q05		3Q04			3Q05

IDR/ Rupiah		4,280.3		4,047.0		4,280.3		4,047.0		24.7	%		27.1	%
U.S. Dollar		1,215.2		859.8		10,791.7		8,864.0		62.2	%		59.4	%
Japanese Yen		17,242.0		16,099.1		1,427.1		1,465.0		8.2	%		9.8	%
EURO		74.2		44.0		838.7		546.7		4.8	%		3.7	%

Total						17,337.7		14,922.8		100	%		100	%

Of the total consolidated debt in 3Q05, 81.5% is defined as a long term debt.

UNCONSOLIDATED DEBT (TELKOM as single entity)

As of September 30, 2005, TELKOM’s debt portfolio (short-term and long-term) in original currencies and in Indonesian Rupiah equivalent was as follows:


	Original (in million)				Rp (in billion)				Portion (%)
Currencies	3Q04		3Q05		3Q04		3Q05		3Q04			3Q05

IDR/ Rupiah		4,206.9		3,839.7		4,206.9		3,839.7		27.2	%		28.1	%
U.S. Dollar		1,050.3		811.4		9,631.6		8,365.1		62.4	%		61.2	%
Japanese Yen		17,242.0		16,099.1		1,427.1		1,465.0		9.2	%		10.7	%
EURO		15.5		0		175.4		0		1.1	%		0.0	%

Total						15,441.0		13,669.9		100	%		100	%

TELKOM hedges its foreign currencies exposures through time deposit placement, mainly in US Dollars. As of Sept 30, 2005, the Company’s deposit covered approximately 21.3% of foreign debts from Oct 1, 2005 to Sept 30, 2006.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of September 30, 2005, TELKOM, including KSO VII, recorded 12.4 million Lines in Service (LIS) of fixed line, consisting of 8.7 million LIS of fixed wireline and 3.7 million LIS of fixed wireless.

Net additional LIS as of September 30, 2005 reached 2.3 million lines, an increase of 109% compared to 1.1 million lines in the third quarter 2004.

Flexi still recorded high growth in LIS (244%)

Fixed-Wireless CDMA Services

As of September 30, 2005, TELKOMFlexi contributed Rp 1,234.0 billion (gross) to TELKOM revenues, mainly generated from voice, SMS, and interconnection.

For detailed TELKOMFlexi performances, please see attachment on Table 7.

TELKOM International Call 007 (TIC-007)

As of September 30, 2005, TIC-007 has generated Rp 778.2 billion in revenues (gross basis), consisting of Rp 347.3 billion from TIC-007 outgoing call revenues, Rp 195.2 billion from outgoing interconnection revenues, and Rp 235.7 billion

from incoming interconnection revenues. After eliminating all of the expenses, the total net revenues of TIC-007 was Rp 507.8 billion, including Rp 280.2 billion from the outgoing call (recorded under “International Revenues” in the Income Statement). TELKOM also recorded the incoming and outgoing international traffics of 301.4 million minutes and 96.2 million minutes, respectively.

Cellular Services

Telkomsel is the largest mobile communication company in Indonesia with 54% subscriber’s market share and total subscribers of 23.5 million at the end of September 2005.

Data and Internet Services

As of September 30, 2005, the total access to TELKOMNet Instan connectivity amounted to 34.8 million hours, an increase of 19.4% over the same period last year. Meanwhile, the use of TelkomGlobal and TelkomSave access through VoIP amounted 31.1 million minutes and 7.6 million minutes, respectively.

HUMAN RESOURCES

As of September 30, 2005, the total number of TELKOM (as a single entity) employees was 28,200 persons, consisting of 24,968 persons in TELKOM Regions and 3,232 persons in the KSO Region.

Productivity per employee as measured by the number of fixed lines in service per employee as of September 30, 2005 was 439 compared to 327 for September 30, 2004.

RECENT DEVELOPMENTS

•		TELKOM Purchased 10% share of Patrakom from Indosat On August 22, 2005, TELKOM and Indosat have signed a sale and purchase agreement for 10% share of PT.Patra Telekomunikasi Indonesia (“Patrakom) for the amount of Rp 4.25 billion. As a result of the transaction, TELKOM’s ownership in Patrakom increased from 30% to 40%, while Indosat has none.

•		TELKOM appointed KPMG to audit its 2005 Annual Reports Telkom have selected KAP Siddharta, Siddharta & Wijaya, member firm of KPMG, as the independent auditor to audit the Company’s annual account for the financial year 2005.

•		Agreement of “0” access code usage between TELKOM and Indosat On September 23, 2005, TELKOM and Indosat have signed a Fixed-line Interconnection Cooperation Agreement to support basic telephone service for Local, Domestic Long Distance (DLD), and International Direct Dialing (IDD).

•		On July 2004, the Indonesia Institute of Accountants issued Statement of Financial Accounting Standards (“PSAK”) No 38 (Revised 2004), Accounting for Restructuring of Entities Under Common Control, which revised the standard of restructuring of entities under common control.

		The substance of the changes that the balance account of Difference in Value of Restructuring Transaction Between Entities Under Common Control (UCC) may change when the status of common control between the parties has been terminated, and recognized as realized gain/loss. The statement is effective for the financial statements commencing on or after January 1, 2005. Considering the termination of status under common control with INDOSAT since it has been majority owned by foreign company in 2003, the Company has the possibility to have an adjustment of the UCC account balance. Due to the differences interpretation of the related accounting treatment, the Company has not included yet necessary adjustment to the UCC account balance based on Revised PSAK 38. The adjustment may impact to previous years financial statements and not affect to the realization of income statement for the nine months period ended September 30, 2004 and 2005.

•		Restructure the utilization of 3 G frequency The Government plan to realocate the utilization of 3G frequency, may lead to the migration of frequency which is currently being utilized by the Company for Flexi services in Regional Division II and III. In order to anticipate certain aspect as result of the frequency migration, the Company is identifying the component which necessary to be replaced, and the effect to the financial statement.

•		The launching of Satellite Telkom-2 has been delayed until November 13, 2005 due to technical problems.

Corporate Secretary,

ADEK JULIANWAR

Table 1
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AS OF SEPTEMBER 30, 2004 AND 2005

(Figures in table are presented in millions, except share data)


	2004
	Rp		2005
	(Restated)		Rp

ASSETS

CURRENT ASSETS
Cash and cash equivalents		6,112,466		5,447,032
Temporary investments		107,799		28,624
Sub total		6,220,265		5,475,656
Trade accounts receivables
Related parties — net of allowance for doubtful accounts of Rp 143,591 million in 2004 and Rp 129,618 million in 2005		578,696		441,035
Third parties — net of allowance for doubtful accounts of Rp 562,013 million in 2004 and Rp 591,933 million in 2005		3,281,881		3,009,885
Sub total		3,860,577		3,450,920
Other accounts receivable — net of allowance for doubtful accounts of Rp 35,442 million in 2004 and Rp 9,545 million in 2005		57,802		82,977
Inventories — net of allowance for obsolescence of Rp 47,102 million in 2004 and Rp 52,780 million in 2005		171,746		212,115
Prepaid expenses		659,127		1,054,681
Prepaid taxes		64,845		20,320
Other current Assets		44,412		13,606
TOTAL CURRENT ASSETS		11,078,774		10,310,275

NON-CURRENT ASSETS

Long-term investments — net		72,743		101,734
Property, plant and equipment — net of accumulated depreciation of Rp 27,427,268 million in 2004 and Rp 33,923,855 million in 2005		38,703,128		41,784,683
Property, plant and equipment under revenue-sharing arrangements — net of accumulated depreciation of Rp 779,243 million in 2004 and Rp 486,858 million in 2005		275,144		472,296
Prepaid pension costs		449,029		496,485
Advances and other non current assets		427,702		1,428,886
Goodwill and other intangible assets— net of accumulated amortization of Rp 1,622,839 million in 2004 and Rp 2,534,648 million in 2005		5,403,143		4,722,811
Advance payments for investments in shares of stock		65,458		—
Escrow account		215,001		113,122
TOTAL NON-CURRENT ASSETS		45,611,348		49,120,017

TOTAL ASSETS		56,690,122		59,430,292

Table 1 (continued)
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AS OF SEPTEMBER 30, 2004 AND 2005
(Figures in table are presented in millions, except share data)


	2004			2005
	Rp			Rp
	(Restated)

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Trade accounts payable
Related parties		756,222			744,772
Third parties		3,248,571			3,005,503
Other accounts payable		39,932			44,299
Taxes payable		1,490,932			1,833,742
Dividens payable		1,153,412			33,712
Accrued expenses		1,682,082			1,626,214
Unearned income		928,724			1,599,150
Advances from customers and suppliers		328,392			250,326
Short-term bank loans		397,537			675,190
Current maturities of long-term liabilities		2,565,797			2,088,094

TOTAL CURRENT LIABILITIES		12,591,601			11,901,002

NON-CURRENT LIABILITIES
Deferred tax liabilities — net		3,448,697			3,068,403
Unearned income on revenue-sharing arrangements		133,136			346,158
Unearned initial investor payments under joint operation scheme		28,117			19,681
Provision for Long service award		552,187			581,636
Provision for post-retirement health care benefits		2,776,897			2,785,828
Provision for other post retirement benefits		13,234			23,662
Long-term liabilities — net of current maturities
Two-step loans — related party		6,505,888			5,095,273
Notes and bonds		1,711,807			1,600,068
Bank loans		2,579,220			1,900,100
Liabilities for acquisitions of subsidiaries and KSO IV		3,568,342			3,564,041
Other long-term debt		9,150			—

Sub total long-term liabilities — net of current maturities		14,374,407			12,159,482

TOTAL NON-CURRENT LIABILITIES		21,326,675			18,984,850

MINORITY INTEREST IN NET ASSETS OF SUBSIDIARIES		4,462,324			5,879,149

STOCKHOLDERS’ EQUITY
Capital stock — Rp 250 par value per Series-A Dwiwarna share and Series-B shares. Authorized — one Series A Dwiwarna share and 79,999,999,999 B Series 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
Differece in value of restructuring transactions between entities under common control		(7,288,271	)		(7,288,271	)
Differece due to change of equity in associated companies		385,595			385,595
Unrealized gain on investment in securities available for sale		490			5,471
Translation adjustment		230,045			232,728
Retained earnings
Appropriated		1,680,813			1,803,397
Unappropriated		17,187,517			21,413,038

TOTAL SHAREHOLDERS’ EQUITY		18,309,522			22,665,291

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		56,690,122			59,430,292

Table 2
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2004 AND 2005
(Figure in table are presented in millions, except share and per ADS data)


	2004
	Rp			2005
	(Restated)			Rp

OPERATING REVENUES

Telephone
Fixed lines		8,351,943			8,313,529
Cellular		7,689,968			9,937,763
International		53,886			280,227
Interconnection		4,314,231			5,466,032
Joint operation schemes		481,545			479,839
Data and Internet		3,357,232			4,857,210
Network		468,479			425,256
Revenue-sharing arrangements		128,134			174,645
Other telecommunications services		249,811			219,451

Total Operating Revenues		25,095,229			30,153,952

OPERATING EXPENSES
Personnel		4,053,243			5,140,718
Depreciation		4,482,860			4,940,704
Operations, maintenance and telecommunications services		3,387,144			4,511,496
General and administrative		1,837,295			2,051,961
Marketing		639,855			714,322

Total Operating Expenses		14,400,397			17,359,201

OPERATING INCOME		10,694,832			12,794,751

OTHER INCOME (CHARGES)
Interest income		219,280			221,655
Interest expense		(1,126,136	)		(918,165	)
Gain (loss) on foreign exchange — net		(883,977	)		(886,578	)
Equity in net income (loss) of associated companies		2,283			10,350
Others — net		347,542			390,394

Other Income (Charges) — net		(1,441,008	)		(1,182,344	)

INCOME BEFORE TAX		9,253,824			11,612,407

TAX EXPENSE
Current tax		(3,057,132	)		(4,002,983	)
Deferred tax		98,074			283,768

		(2,959,058	)		(3,719,215	)

INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		6,294,766			7,893,192

MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		(1,439,236	)		(2,111,559	)

NET INCOME		4,855,530			5,781,633

BASIC EARNINGS PER SHARE
NET INCOME PER SHARE		240.85			286.79
NET INCOME PER ADS (40 SERIES-B SHARES PER ADS)		9,633.99			11,471.49

Table 2 a
Breakdown of the Statement of Income
For the nine months period ended September 30, 2004 and 2005


	2004
	(Rp. Million)		2005		Growth
	(Restated)		(Rp. Million)		(%)

OPERATING REVENUE
Fixed Lines (wireline + wireless)
Local		2,377,088		2,557,529		7.59
Long distance		3,624,706		3,033,037		(16.32	)
*Local and domestic long distance*		6,001,794		5,590,566		(6.85	)
Monthly subscription charges		2,072,775		2,461,671		18.76
Instalation charges		158,257		153,803		(2.81	)
Others		119,117		107,489		(9.76	)
Total Fixed lines Revenues		8,351,943		8,313,529		(0.46	)

Cellular		7,689,968		9,937,763		29.23
International		53,886		280,227		420.03
Interconnection
Cellular		3,855,206		4,902,794		27.17
International		365,583		417,215		14.12
Other		93,442		146,023		56.27
Total Interconnection Revenues		4,314,231		5,466,032		26.70
Joint Operation Scheme
Minimum TELKOM Revenues		230,754		201,472		(12.69	)
Share in Distributable KSO Revenue		249,125		277,270		11.30
Amortization of unearned initial investor payments under Joint Operation Scheme		1,666		1,097		(34.17	)
Total Joint Operation Scheme Revenues		481,545		479,839		(0.35	)
Data and Internet
SMS		2,481,751		3,734,074		50.46
Internet Connectivity		328,137		560,007		70.66
Data Communication		312,769		449,167		43.61
VOIP		227,914		104,670		(54.07	)
E-Business Service		6,661		9,292		39.49
Total Data and Internet Revenues		3,357,232		4,857,210		44.68
Network
Leased lines		303,924		247,463		(18.58	)
Satellite transponder lease		164,555		177,793		8.04
Total Network Revenues		468,479		425,256		(9.23	)
Revenue Sharing Arrangement Revenues		128,134		174,645		36.30
Other Telecommunications Services (OTS)
Directory assistance		242,055		214,489		(11.39	)
Others		7,756		4,962		(36.02	)
Total OTS Revenues		249,811		219,451		(12.15	)
TOTAL OPERATING REVENUES		25,095,229		30,153,952		20.16
OPERATING EXPENSES
Personnel		4,053,243		5,140,718		26.83
Depreciation		4,482,860		4,940,704		10.21
Operation, maintenance and telecommunications services
Operations and maintenance		1,617,206		2,315,970		43.21
Cost of phone cards		275,229		464,272		68.69
Lisence (Concession fees & radio frequency usage charges)		767,905		941,860		22.65
Electricity, gas and water		296,046		297,494		0.49
Insurance and Others		430,759		491,900		14.19
Total O & M		3,387,144		4,511,496		33.19

Table 2 a (continued)
Breakdown of the Statements of Income (Continued)
For the nine months period ended September 30, 2004 and 2005


	2004
	(Rp. Million)			2005			Growth
	(Restated)			(Rp. Million)				(%)

General and administrative
Provision for doubtful accounts and inventory obsolescence		285,588			404,225			41.54
Training, education and recruitment		154,242			129,930			(15.76	)
Research, development and consultant		84,398			86,096			2.01
Collection expenses		250,521			279,280			11.48
Amortization of Intangible assets		649,134			688,614			6.08
Others		413,412			463,816			12.19
Total G & A		1,837,295			2,051,961			11.68
Marketing		639,855			714,322			11.64
TOTAL OPERATING EXPENSES		14,400,397			17,359,201			20.55

OPERATING INCOME		10,694,832			12,794,751			19.63

OTHER INCOME (CHARGES)
Interest income		219,280			221,655			1.08
Interest expense		(1,126,136	)		(918,165	)		(18.47	)
Gain (loss) on foreign exchange — net		(883,977	)		(886,578	)		0.29
Equity in net income (loss) of associated companies		2,283			10,350			353.42
Income from supporting activities		131,320			114,451			(12.85	)
Others — net		216,222			275,943			27.62
Total Other Income (Charges) — net		(1,441,008	)		(1,182,344	)		(17.95	)

INCOME BEFORE TAX		9,253,824			11,612,407			25.49

TAX EXPENSE
Current tax		(3,057,132	)		(4,002,983	)		30.94
Deffered tax		98,074			283,768			189.34
Total TAX EXPENSE		(2,959,058	)		(3,719,215	)		25.69

INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		6,294,766			7,893,192			25.39

MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		(1,439,236	)		(2,111,559	)		46.71

NET INCOME		4,855,530			5,781,633			19.07

NET INCOME PER SHARE (FULL AMOUNT)		240.85			286.79			19.07

NET INCOME PER ADS (40 SERIES B SHARE PER ADS) (FULL AMOUNT)		9,633.99			11,471.49			19.07

Table 3
PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2004 AND 2005
(Figures in table are presented in millions)


	2004
	Rp			2005
	(Restated)				Rp
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines		8,900,742			9,090,375
Cellular		8,688,496			10,520,320
Joint operation scheme		522,231			449,757
Interconnection — net		2,605,403			5,362,258
Other services		2,046,857			5,083,528

Total cash receipts from operating revenues		22,763,729			30,506,238
Cash payments for operating expenses		(9,192,774	)		(11,498,669	)


Cash generated from operations		13,570,955			19,007,569


Interest received		226,053			217,592
Income tax payments		(2,611,147	)		(3,165,418	)
Interest paid		(900,716	)		(933,298	)
Cash receipt (refund) from/to customers and advances		17,380			(9,810	)


Net Cash Provided by Operating Activities		10,302,525			15,116,635


CASH FLOWS FROM INVESTING ACTIVITIES

Placement of short-term investments and time deposits — net		(92,804	)		(8,675	)
Proceeds from sale of property, plant and equipment		48,699			120,589
Acquisition of property, plant and equipment		(4,266,626	)		(7,410,978	)
Increase (decrease) in advance for acquisition of property, plant and equipment		—			(38,034	)
Increase (decrease) in advances and others		7,368			26,725


Net Cash Used in Investing Activities		(4,303,363	)		(7,310,373	)


CASH FLOWS FROM FINANCING ACTIVITIES
Received of long-term liabilities		693,058			1,029,092
Repayments of Telkomsel’s Guaranteed Notes		(504,101	)		(780,565	)
Repayments of long-term liabilities		(2,977,802	)		(2,688,862	)
Repayments of Medium Term Notes		—			(290,000	)
Cash dividends paid		(2,536,732	)		(4,202,184	)
Decrease (increase) in escrow accounts		232,837			(76,842	)


Net Cash Used in Financing Activities		(5,092,740	)		(7,009,361	)


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		906,422			796,901

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		111,572			(205,993	)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		5,094,472			4,856,124


CASH AND CASH EQUIVALENTS AT END OF YEAR		6,112,466			5,447,032

Table 4
FINANCIAL RATIOS FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2004 & 2005


	2004		2005		Growth (%)

Contribution of pulses to total fixed-phone revenue:
Local Calls (%)		28.46		30.76		2.30
Domestic Long Distance Calls (%)		43.40		36.48		(6.92	)
Monthly subscription charges (%)		24.82		29.61		4.79
Installation charges (%)		1.89		1.85		(0.04	)
Others (%)		1.43		1.29		(0.13	)
Contribution to total operating revenues:
Cellular (%)		30.64		32.96		2.31
Fixed-phone (%)		33.28		27.57		(5.71	)
International (%)		0.21		0.93		0.71
Revenue under JOS (%)		1.92		1.59		(0.33	)
Interconnection (%)		17.19		18.13		0.94
Network (%)		1.87		1.41		(0.46	)
Data dan internet (%)		13.38		16.11		2.73
Revenue under RSA (%)		0.51		0.58		0.07
Other telecommunications services (%)		1.00		0.73		(0.27	)
EBITDA (Rp million)		15,826,826		18,424,069		16.41
EBITDA margin (%)		63.07		61.10		(1.97	)
Operating margin (%)		42.62		42.43		(0.19	)
Profit Margin (%)		19.35		19.17		(0.17	)
Current ratio (%)		87.99		86.63		(1.35	)
Return on Assets (%)		8.57		9.73		1.16
Return on Equity (%)		26.52		25.51		(1.01	)
Total Liabilities to Equity (%)		185.25		136.27		(48.98	)
Gearing (Net Debt to Equity) (%)		59.55		41.18		(18.36	)
Debt to Equity (%)		94.69		65.84		(28.85	)
Debt to EBITDA (%)		109.55		81.00		(28.55	)
Debt Service Ratio (Times)		3.9		5.0		1.13
EBITDA to Interest Expense (times)		14.1		20.1		6.01
EBITDA to Net Debt (%)		145.2		197.4		52.22
ARPU Fixed wireline (‘000)		182		156		(14.1	)
Capex/Revenue *)		15.9		8.4		(7.52	)
Personnel cost/Revenue		16.2		17.0		0.90


*)		Unconsolidated

Table 5
FIXED TELEPHONE LINE
AS of September 30, 2004 and 2005


Description	UNIT	2004		2005		Growth (%)
Exchange Capacity TELKOM Division
Wireline	Lines		8,746,896		9,018,502		3.11	%
Wireless	Lines		1,294,065		1,952,644		50.89	%
Total Exchange Cap. TELKOM (Wireline & Wireless)	Lines		10,040,961		10,971,146		9.26	%

Exchange Capacity KSO Division
Wireline	Lines		948,230		1,040,742		9.76	%
Wireless (MSC)	Lines		175,200		189,700		8.28	%
Total Exchange Cap. KSO (Wireline & Wireless)	Lines		1,123,430		1,230,442		9.53	%

Exchange Capacity TELKOM & KSO Division
Wireline	Lines		9,695,126		10,059,244		3.76	%
Wireless	Lines		1,469,265		2,142,344		45.81	%
Total Exchange Cap. TELKOM & KSO (Wireline & Wireless)	Lines		11,164,391		12,201,588		9.29	%

Installed Lines TELKOM Division
Wireline	Lines		8,205,352		8,413,254		2.53	%
Wireless	Lines		1,609,377		3,010,839		87.08	%
Total Installed Lines TELKOM (Wireline & Wireless)	Lines		9,814,729		11,424,093		16.40	%

Installed Lines KSO Division
Wireline	Lines		920,109		990,113		7.61	%
Wireless	Lines		138,467		281,257		103.12	%
Total Installed Lines KSO (Wireline & Wireless)	Lines		1,058,576		1,271,370		20.10	%

Installed Lines TELKOM & KSO Division
Wireline	Lines		9,125,461		9,403,367		3.05	%
Wireless	Lines		1,747,844		3,292,096		88.35	%
Total Installed Lines TELKOM & KSO (Wireline & Wireless)	Lines		10,873,305		12,695,463		16.76	%

Subscribers TELKOM Division
Wireline	Lines		7,288,769		7,376,167		1.20	%
Wireless	Lines		988,579		3,446,762		248.66	%
Total Subscribers TELKOM Division (Wireline & Wireless)	Lines		8,277,348		10,822,929		30.75	%

Subscribers KSO Division
Wireline	Lines		800,824		859,971		7.39	%
Wireless	Lines		91,573		264,642		189.00	%
Total Subscribers KSO Division (Wireline & Wireless)	Lines		892,397		1,124,613		26.02	%

Subscribers TELKOM & KSO Division
Wireline	Lines		8,089,593		8,236,138		1.81	%
Wireless	Lines		1,080,152		3,711,404		243.60	%
Total Subscribers —TELKOM & KSO Division (Wireline & Wireless)	Lines		9,169,745		11,947,542		30.29	%

Public Phone TELKOM Division
Wireline	Lines		391,955		385,395		-1.67	%
Wireless	Lines		2,793		10,204		265.34	%
Total Public Phone TELKOM Division (Wireline & Wireless)	Lines		394,748		395,599		0.22	%

Public Phone KSO Division
Wireline	Lines		27,221		29,022		6.62	%
Wireless	Lines		—		—		0.00	%
Total Public Phone KSO Division (Wireline & Wireless)	Lines		27,221		29,022		6.62	%

Public Phone TELKOM & KSO Division
Wireline	Lines		419,176		414,417		-1.14	%
Wireless	Lines		2,793		10,204		265.34	%
Total Public Phone TELKOM & KSO Division (Wireline & Wireless)	Lines		421,969		424,621		0.63	%

LIS Fixed TELKOM Division
Wireline	Lines		7,680,724		7,761,562		1.05	%
Wireless	Lines		991,372		3,456,966		248.71	%
Total Lines In Services TELKOM (Wireline & Wireless)	Lines		8,672,096		11,218,528		29.36	%

LIS Fixed KSO Division
Wireline	Lines		828,045		888,993		7.36	%
Wireless	Lines		91,573		264,642		189.00	%
Total Lines In Services KSO (Wireline & Wireless)	Lines		919,618		1,153,635		25.45	%

LIS Fixed TELKOM & KSO Division
Wireline	Lines		8,508,769		8,650,555		1.67	%
Wireless	Lines		1,082,945		3,721,608		243.66	%
Total Lines In Services TELKOM & KSO Division (Wireline & Wireless)	Lines		9,591,714		12,372,163		28.99	%

Table 6
PULSE PRODUCTION

As of September 30, 2004 & 2005


	UNIT	2004		2005		GROWTH (%)
Production :
Subscriber —TELKOM Division
Wireline	Pulses		43,857,424,043		43,850,374,496		-0.02	%
Wireless (exclude data & sms)	Second		37,219,052,193		135,012,305,251		262.75	%

Subscriber —KSO Division
Wireline	Pulses		5,117,029,662		7,346,228,452		43.56	%
Wireless (exclude data & sms)	Second		5,007,618,838		12,965,593,612		158.92	%

Subscriber TELKOM & KSO Division
Wireline	Pulses		48,974,453,705		51,196,602,948		4.54	%
Wireless (exclude data & sms)	Second		42,226,671,031		147,977,898,863		250.44	%

Public Phone —TELKOM Division
Wireline	Pulses		10,541,111,720		8,567,499,208		-18.72	%
Wireless (exclude data & sms)	Second		838,590,731		5,156,972,991		514.96	%

Public Phone — KSO Division
Wireline	Pulses		1,761,545,418		1,468,480,720		-16.64	%
Wireless (exclude data & sms)	Second		110,385,306		120,557,928		9.22	%

Public Phone — TELKOM & KSO Division
Wireline	Pulses		12,302,657,138		10,035,979,928		-18.42	%
Wireless (exclude data & sms)	Second		948,976,037		5,277,530,919		456.13	%

Lines in Services — Production TELKOM & KSO Division
Wireline	Pulses		61,277,110,843		61,232,582,877		-0.07	%
Wireless (exclude data & sms)	Second		43,175,647,068		153,255,429,782		254.96	%

Productivity Per Average Subscriber Line TELKOM & KSO Division
Wireline	Pulses/Line		6,162		6,253		1.48	%
Wireless	Second/Line		62,819		57,612		-8.29	%

Productivity Per Average LIS TELKOM & KSO Division
Wireline	Pulses/Line		7,328		7,116		-2.90	%
Wireless	Second/Line		64,072		59,505		-7.13	%

Table 7
Flexi Performance
As of September 30, 2004 and 2005


Descriptions	Unit	30-Sep-04		30-Sep-05		Growth(%)
Net additions
Classy/Postpaid *)	Subs		386,487		142,459		(63.1	)
Trendy/Prepaid	Subs		431,671		2,149,781		398.0
Total	Subs		818,158		2,292,240		180.2

Customer base
Classy/Postpaid *)	Subs		614,601		826,422		34.5
Trendy/Prepaid	Subs		468,344		2,895,186		518.2
Total	Subs		1,082,945		3,721,608		243.7

Sales
Classy/Postpaid **)	Subs		489,347		416,947		(14.8	)
Trendy/Prepaid	Subs		443,965		2,879,341		548.6
Total	Subs		933,312		3,296,288		253.2

ARPU (9 months average)
Classy/Postpaid	Rp.(000)		158		111		(29.7	)
Trendy/Prepaid	Rp.(000)		13		29		123.1
Total/Blended	Rp.(000)		103		53		(48.5	)

Blended	Rp.(000)		171		103		-40	%
SMS
# SMS/sub/month (Postpaid)	SMS		15		20		33.3
# SMS/sub/month (Prepaid)	SMS		8		16		100.0
# SMS/sub/month (Blended)	SMS		12		17		41.7

NETWORK
BTS	unit		848		1,382		63.0

Number of city in service	city		115		229		99.1

Table 8
PT. TELKOMSEL
BALANCE SHEETS
As of September 30, 2004 and 2005
(In millions of rupiah)


	2004			2005
	Rp .			Rp .			Growth
ASSETS

CURRENT ASSETS
Cash and cash equivalents		3,625,078			2,769,919			-24	%
Short-term investment		—			44,955			—
Acct. receivable — net of allow. for doubtful acct.		233,878			354,090			51	%
Accrued income		406,092			357,245			-12	%
Advances		120,975			1,259			-99	%
Inventories		73,471			62,380			-15	%
Prepaid taxes & expenses		312,319			725,042			132	%
Claim for tax refund		34,036			34,251			1	%
Others		1,627			—			-100	%
Total Current Assets		4,807,476			4,349,141			-10	%
LONG-TERM INVESTMENT		—			9,290			—
PROPERTY, PLANT AND EQUIPMENT
Fixed assets		19,748,405			25,556,840			29	%
Work in progress		291,982			1,412,549			384	%
Accumulated depreciation		(5,429,933	)		(8,345,465	)		-54	%
PPE — Net Book Value		14,610,454			18,623,924			27	%
OTHER ASSETS
Advances for PPE		—			485,047			—
Others		33,446			30,874			-8	%
Total Other Assets		33,446			515,921			1443	%
TOTAL ASSETS		19,451,376			23,498,276			21	%

CURRENT LIABILITIES
Short-term loan		—			170,000			—
Accounts payable		314,760			453,788			44	%
Accrued liabilities		1,985,272			1,788,874			-10	%
Taxes payable		518,114			1,061,839			105	%
Unearned revenue		822,854			1,585,359			93	%
Dividend payable		953,325			—			-100	%
Curr. maturities of long-term loan		262,283			341,866			30	%
Total Current Liabilities		4,856,608			5,401,726			11	%
NON-CURRENT LIABILITIES
Deferred tax liabilities		678,724			857,278			26	%
Long term loan — net of current maturities		793,689			703,737			-11	%
Guaranteed notes — net		726,564			—			-100	%
Total Non-current Liabilities		2,198,977			1,561,015			-29	%
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		10,708,367			14,848,111			39	%
Total Equity		12,395,791			16,535,535			33	%

TOTAL LIAB. & STOCKHOLDERS’ EQUITY		19,451,376			23,498,276			21	%

Table 9
PT. TELKOMSEL
STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 and 2005
(In millions of rupiah)


	2004			2005
	Rp .			Rp .			Growth
OPERATING REVENUES
Post-paid		2,905,779			3,384,748			16	%
Prepaid		8,130,785			12,133,792			49	%
International roaming		485,409			634,822			31	%
Interconnection revenues		1,628,250			2,200,215			35	%
Gross Operating Revenues		13,150,223			18,353,577			40	%
Less:
- Dealer Discounts/Commissions		842,614			1,692,456			101	%
- Interconnect / Intl. roaming / Data provider Outpayment		1,603,252			2,068,599			29	%
Net Operating Revenues		10,704,357			14,592,522			36	%

OPERATING EXPENSES
Personnel		342,521			452,346			32	%
Operation & maintenance		1,506,302			2,002,310			33	%
General & administrative		402,153			429,667			7	%
Marketing & selling		249,973			325,574			30	%
Rev. dependent & other cost of services		591,946			843,647			43	%
Depreciation and amortization		1,784,779			2,091,289			17	%
Total Operating Expenses		4,877,674			6,144,833			26	%

EBIT (EARNINGS BEFORE INTEREST & TAXES)		5,826,683			8,447,689			45	%
OTHER INCOME/(CHARGES)
Interest income & financing charges		(92,654	)		(2,710	)		97	%
Foreign exchange gain/(loss)		(32,429	)		(54,869	)		-69	%
Others — net		28,189			85,731			204	%
Other income/(charges) — net		(96,894	)		28,152			129	%

INCOME BEFORE TAX		5,729,789			8,475,841			48	%
PROVISION FOR INCOME TAX		1,738,416			2,533,915			46	%
NET INCOME		3,991,373			5,941,926			49	%

EBITDA		7,611,462			10,538,978			38	%
EBITDA Margin — over net revenues		71	%		72	%		1	%
EBITDA Margin — over gross revenues		58	%		57	%		-1	%

Table 10
PT. TELKOMSEL
OPERATIONAL INDICATORS As of SEP 30, 2004 and 2005


	Unit	2004			2005			Growth
CUSTOMER BASE
Net Additions
kartuHALO	Subscriber (000)		264			101			-62	%
simPATI	Subscriber (000)		2,292			3,270			43	%
Kartu As	Subscriber (000)		1,547			3,822			147	%
Total	Subscriber (000)		4,103			7,193			75	%
Customer base
kartuHALO	Subscriber (000)		1,271			1,428			12	%
simPATI	Subscriber (000)		10,874			14,827			36	%
Kartu As	Subscriber (000)		1,547			7,228			367	%
Total	Subscriber (000)		13,692			23,483			72	%

ARPU
Total (9 months average)
kartuHALO	Rp.‘000 per mo.		309			292			-6	%
simPATI	Rp.‘000 per mo.		85			82			-4	%
Kartu As	Rp.‘000 per mo.		57			41			-28	%
Blended	Rp.‘000 per mo.		106			86			-19	%
Non-voice/Data(9 months average)
kartuHALO	Rp.‘000 per mo.		39			46			18	%
simPATI	Rp.‘000 per mo.		23			24			4	%
Kartu As	Rp.‘000 per mo.		20			13			-35	%
Blended	Rp.‘000 per mo.		24			23			-4	%

Effective ARPU(net booked revenues / average subs / 9)	Rp.‘000 per mo.		102			82			-20	%

NETWORK DATA
Network capacity
Base stations installed	Unit		5,762			9,017			56	%
Overall capacity all network elements	Subs. mln.		15.4			25.1			63	%
Quality of service
Call success rate	%		95.83	%		93.93	%		-1.90	%
Call completion rate	%		99.36	%		99.28	%		-0.08	%

EMPLOYEE DATA
Total employees	person		3,201			3,406			6	%
Efficiency ratio	Subs/employee		4,277			6,895			61	%

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