PT TELEKOMUNIKASI INDONESIA

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 , 20 07

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 May 30, 2007	By	/s/ Harsya Denny Suryo
		(Signature)

		Harsya Denny Suryo
	Vice President Investor Relation & Corporate Secretary

TICKERS:

NYSE : TLK
LSE : TKIA
JSX : TLKM

DIVISIONS:
Telkom Regions: I, II, III, IV, V, VI and VII

SHARE IN ISSUES:
20,159,999,280 shares

MAJOR SHARE HOLDERS:
Govt. of Indonesia : 51.19%
Public : 48.81%

CONVERSION RATES (US$1.00):

2005 = Rp. 9,830.0 (Dec 31,2005)
2006 = Rp. 9,020.0 (Dec 31,2006)

NOTABLE FIGURES:

n Growth in net income by 38%

n Data and Internet YoY revenues continue grew by 30.7%

n The number of subscribers wireless grew YoY by 40%

TELKOM FINANCIAL
INDICATORS – FY06
(in Rp.trillion)

FINANCIAL HIGHLIGHT (Consolidated):


	FY05		FY06		Growth
Key Indicators	(Rp Billion)		(Rp Billion)		(%)
Operating Revenues		41,807		51,294		22.7
Operating Expenses		24,636		29,701		20.6
Operating Income (EBIT)		17,171		21,593		25.8
EBITDA		25,660		31,716		23.6
Net Income (NI)		7,994		11,006		37.7
Net Income / Share (Rp)		396.51		547.15		38.0
Net Income / ADS (Rp)		15,860.25		21,886.0		38.0
EBITDA Margin (%)		61.38		61.83		0.45

FIXED LINE LIS vs CELLULAR SUBSCRIBERS
FY06
(in million)

OPERATIONAL HIGHLIGHT:


								Growth
Description	Unit			FY05		FY06		(%)
TELKOM
LIS Wireline		(000	)		8,686		8,709		0.3
LIS Wireless (Flexi)		(000	)		4,062		4,176		2.8
Total		(000	)		12,748		12,885		1.1

TELKOMSEL
Customer :
SimPati		(000	)		16,004		21,378		33,6
Kartu As		(000	)		6,794		12,557		84,8
Total		(000	)		24,269		35,597		46,7


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

DISCLAIMER

This document contains financial conditions and result 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.

Investor Relations Dept.
PT. TELLEKOMUNIKASI INDONESIA Tbk
Grha Citra Caraka
Jl. Gatot Subroto Kav. 52, 5^th floor
Phone : 62 21 5215109
Fax : 62 21 5220500
Email : investor@telkom.co.id
Website : www.telkom-indonesia.com

The Full Year 2006 Results

PT. TELEKOMUNIKASI INDONESIA, Tbk.
ANNOUNCEMENT FOR
THE YEAR END OF 2006 RESULTS (Audited)

Jakarta, May 29, 2007 - PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), has announced its operational and consolidated financial statements results for the year end of 2006. 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 Result

Profit and Loss Statement

Financial results as of December 31, 2006 compared to the same period ended December 31, 2005.

Revenues Contribution FY 2006:

Total Operating Revenues increased by Rp. 9,486.8 billion or 22.7% compared to the same period last year, summarized as follows:

Cellular telephone revenues increased by Rp.6,051.7 billion, or 41.5%, from Rp.14,571.0 billion in 2005 to Rp.20,622.6 billion in 2006. The increase in this revenue was primarily due to an increase in air time charges, connection fee charges for new subscribers and features, partially offset by a decrease in monthly subscription charges. The increase in cellular telephone revenues was primarily attributable to a 47% growth in Telkomsel’s total cellular subscribers from 24.3 million subscribers in 2005 to 35.6 million subscribers in 2006.

Data and Internet revenues increased by Rp.2,130.9 billion, or 30.7%, from Rp.6,934.3 billion in 2005 to Rp.9,065.2 billion in 2006. The increase in data and Internet revenues was primarily due to significant increases in SMS revenues, internet connectivity revenues, data communications revenues and e-business service.

Net interconnection revenues increased by Rp.939.4 billion, or 12.1%, from Rp.7,742.1 billion in 2005 to Rp.8,681.5 billion in 2006. Cellular interconnection revenues increased by Rp.757.2 billion, or 11.3%,

The Full Year 2006 Results

primarily due to the growth of cellular subscribers in Indonesia. International interconnection revenues increased by Rp.146.5 billion, or 17.1%, primarily due to an increase in incoming and outgoing IDD traffic from domestic operators.

Fixed line revenues increased by Rp.197.8 billion, or 1.8%, from Rp.10,781.3 billion in 2005 to Rp.10,979.0 billion in 2006. The increase in fixed line revenues was primarily due to an increase in fixed wireless revenues, partially offset by a slight decrease in fixed wireline revenues. The increase in fixed wireless revenues was primarily attributable to a 52.6% growth in the wireless pulse production from 3.7 billion minutes in 2005 to 5.6 billion minutes in 2006.

Expenses Contribution FY 2006:

Total operating expenses increased by Rp.5,064.3 billion, or 20.6%, summarized as follows:

Personnel expenses increased by Rp.1,950.7 billion, or 29.7%, from Rp.6,563.0 billion in 2005 to Rp.8,513.8 billion in 2006. The main contributors were primarily due to the recognition of accrued liability related to TELKOM’s early retirement program, the increase in vacation pay, incentives and other benefits expenses, salaries and related benefit expenses.

Depreciation expense increased by Rp.1,607.6 billion, or 21.2%, from Rp.7,570.7 billion in 2005 to Rp.9,178.3 billion in 2006. The increase in depreciation expense was primarily due to Telkomsel’s network infrastructure growth (BTS grew by 62%, while overall network capacity expanded by 48%).

Operations, maintenance and telecommunications services expenses increased by Rp.1,579.4 billion, or 26.7% from Rp.5,916.4 billion to Rp.7,495.7 billion. The increase was mainly attributable to increase in Telkomsel’s operations and maintenance expenses arising from the growth in Telkomsel’s overall capacity and the number of Telkomsel’s BTSs, USO contribution by TELKOM and Telkomsel to the Government and radio frequency usage.

As a result of the foregoing, operating income increased by Rp.4,422.5 billion, or 25.8%, and EBITDA of Rp. 31,716.0 billion or increased by 23.6%.

The Full Year 2006 Results

CAPITAL EXPENDITURE

During year 2006, Telkom and Telkomsel have added new equipment Rp.2.2 trillion and Rp.12.4 trillion, respectively.

Consolidated Debt Composition FY 2005:

Composition of consolidated debt in US Dollar decreased by 20% from 59% last year

CONSOLIDATED DEBT

As of December 31, 2006, the breakdown of debt portfolio (short-term and long-term) in foreign currencies and Rupiah equivalents were as follows:


	Original (in million)				Rp (in billion)				Portion (%)
Currencies	FY05		FY06		FY05		FY06		FY05			FY06
IDR / Rupiah (billion)		3,757		8,022		3,757		8,022		27.9	%		52.2	%
U.S. Dollar		811		667		7,973		6,003		59.2	%		39.0	%
Japanese Yen		15,528		14,385		1,303		1,089		9.7	%		7.1	%
EURO		37		22		428		261		3.2	%		1.7	%
Total						13,460.0		15,375.4		100.0	%		100.0	%

TELKOM hedged its foreign currency exposures through time deposit placements, mainly in US Dollars. As of December 31, 2006, the Company’s deposits covered approximately 29.82% of foreign debts from January 1, 2007 to December 31, 2007.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of December 31, 2006, TELKOM recorded 12.9 million fixed lines in service, consisting of 8.7 million fixed wireline and 4.2 million fixed wireless.

During the year 2006, penetration rate for fixed wireline and fixed wireless was 5.1.

Fixed-Wireless CDMA Services

As of December 31, 2006, TELKOMFlexi contributed to TELKOM revenues in the net-amount of Rp.1,244 billion. For detail information of TELKOMFlexi performance as of December 31, 2006, please see on Table 7.

TELKOM International Call 007 (TIC-007)

As of December 31, 2006, TIC-007 has generated Rp.527 billion in revenues, derived from TIC-007 outgoing call revenues, outgoing and

The Full Year 2006 Results

incoming interconnection revenues. TELKOM also recorded incoming and outgoing international traffics of 760.0 million minutes and 147.5 million minutes, or grow 78.9% and 13.2%,respectively, from last year.

Cellular Services

Telkomsel is the largest mobile communication company in Indonesia with more than 50 % subscribers market share, with a total number of 35.6 million subscribers as of December 31,2006.

Data and Internet Services

In the year 2006, an average of approximately 689K telephone subscribers accessed Telkomnet Instan and premium prepaid dial-up internet services per month. Subscribers utilized a total of 3.6 billion minutes of Telkomnet Instan or an increased by 26.2% from the same period last year.

Broadband Services (Speedy)

As of December 31, 2006, there were 94K broadband internet access subscribers. This service covered all of Divisions I to VII by the end of 2006. The revenues from Speedy service for the year end 2006 has reached Rp.212 billion.

Human Resource

As of December 31, 2006, the total number of employees at TELKOM (as a single entity) was 27,658 persons.

Productivity per employee as measured by the number of fixed lines in service per employee as of December 31, 2006 was 466 compared to 452 in 2005.

The Full Year 2006 Results

RECENT DEVELOPMENT

SHARE BUY-BACK PROGRESS

As of May 25, 2007, TELKOM has executed its share buy-back program in New York Stock Exchange and Jakarta Stock Exchange amounted to 202,790,500 shares or 20.12% from the maximum amount purchase allowed.

Jakarta, May 30, 2007

HARSYA DENNY SURYO
VP Investor Relations and Corporate Secretary

The Full Year 2006 Results

Table 1
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (AUDITED)
As of December 31, 2005 and 2006
(in millions Rupiah)


	2005		2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents		5,374,684		8,315,836
Temporary investments		22,064		84,492
Trade receivables
Related parties — net of allowance for doubtful accounts of Rp84,275 million in 2005 and Rp85,053 million in 2006		530,370		520,689
Third parties — net of allowance for doubtful accounts of Rp601,393 million in 2005 and Rp699,736 million in 2006		3,047,539		3,196,588
Other receivables — net of allowance for doubtful accounts of Rp4,402 million in 2005 and Rp1,685 million in 2006		153,247		147,735
Inventories — net of allowance for obsolescence of Rp48,347 million in 2005 and Rp48,098 million in 2006		220,327		213,329
Prepaid expenses		777,869		1,073,329
Claim for tax refund		—		359,582
Prepaid taxes		18,913		2,390
Other current assets		159,537		6,822
Total Current Assets		10,304,550		13,920,792
NON-CURRENT ASSETS
Long-term investments — net		101,400		89,197
Property, plant and equipment — net of accumulated depreciation of Rp37,092,663 million in 2005 and Rp45,043,380 million in 2006		45,643,243		54,267,060
Property, plant and equipment under revenue- sharing arrangements — net of accumulated depreciation of Rp458,234 million in 2005 and Rp493,381 million in 2006		549,405		965,632
Prepaid pension benefit cost		640		103
Advances and other non-current assets		946,037		1,454,283
Goodwill and other intangible assets — net of accumulated amortization of Rp2,764,187 million in 2005 and Rp3,708,590 million in 2006		4,493,272		4,436,605
Escrow accounts		132,497		2,073
Total Non-current Assets		51,866,494		61,214,953
TOTAL ASSETS		62,171,044		75,135,745

The Full Year 2006 Results

Table 1 ( continued)
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (AUDITED)
As of December 31, 2005 and 2006
(in millions Rupiah)


	2005			2006
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade payables
Related parties		1,014,389			1,116,496
Third parties		4,281,285			5,801,457
Other payables		6,677			9,219
Taxes payable		2,469,765			2,569,002
Dividends payable		3,276			1,380
Accrued expenses		1,521,247			3,475,698
Unearned income		1,592,718			2,037,772
Advances from customers and suppliers		223,086			161,262
Short-term bank loans		173,800			687,990
Current maturities of long-term liabilities		2,226,925			4,675,409
Total Current Liabilities		13,513,168			20,535,685
NON-CURRENT LIABILITIES
Deferred tax liabilities — net		2,391,810			2,665,397
Unearned income on revenue-sharing arrangements		425,484			817,174
Unearned initial investor payments under joint operation scheme		7,311			—
Accrued long service awards		524,524			596,325
Accrued post-retirement health care benefits		3,048,021			2,945,728
Accrued pension and other post-retirement benefits costs		1,330,664			1,070,622
Long-term liabilities — net of current maturities
Obligations under capital leases		235,537			217,108
Two-step loans — related party		4,760,199			4,006,935
Notes and bonds		1,456,669			—
Bank loans		1,752,104			2,487,913
Deferred consideration for business combinations		3,127,959			3,537,082
Total Non-current Liabilities		19,060,282			18,344,284
MINORITY INTEREST		6,305,193			8,187,087
STOCKHOLDERS’ 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
Treasury stock (118,376,500 shares)		—			(952,211	)
Difference in value of restructuring transactions between entities under common control		90,000			180,000
Difference due to change of equity in associated companies		385,595			385,595
Unrealized holding gain (loss) from available-for-sale securities		(748	)		8,865
Translation adjustment		233,253			227,669
Retained earnings
Appropriated		1,803,397			1,803,397
Unappropriated		14,667,571			20,302,041
Total Stockholders’ Equity		23,292,401			28,068,689
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		62,171,044			75,135,745

The Full Year 2006 Results

Table 2
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (AUDITED)
FOR THE YEARS ENDED DECEMBER 31, 2005 and 2006
(in millions of Rupiah, except per share and per ADS data)


	2005			2006
OPERATING REVENUES
Telephone
Fixed lines		10,781,252			10,979,033
Cellular		14,570,958			20,622,647
Interconnection — net		7,742,084			8,681,461
Joint operation schemes		588,647			489,414
Data and Internet		6,934,324			9,065,187
Network		586,636			718,738
Revenue-sharing arrangements		302,282			415,477
Other telecommunications services		301,001			322,051

Total Operating Revenues		41,807,184			51,294,008

OPERATING EXPENSES
Personnel		6,563,047			8,513,765
Depreciation		7,570,739			9,178,343
Write-down of assets		616,768			—
Loss on procurement commitments		79,359			—
Operations, maintenance and telecommunication services		5,916,341			7,495,728
General and administrative		2,763,951			3,271,427
Marketing		1,126,229			1,241,504

Total Operating Expenses		24,636,434			29,700,767

OPERATING INCOME		17,170,750			21,593,241

OTHER INCOME (EXPENSES)		41.1	%		42.1	%
Interest income		344,686			654,984
Interest expense		(1,177,268	)		(1,286,354	)
Gain (loss) on foreign exchange — net		(516,807	)		836,328
Equity in net income (loss) of associated companies		10,879			(6,619	)
Others — net		409,184			202,025
Other income (expenses) — net		(929,326	)		400,364

INCOME BEFORE TAX		16,241,424			21,993,605

TAX (EXPENSE) BENEFIT
Current tax		(5,719,644	)		(7,097,202	)
Deferred tax		535,757			57,275
		(5,183,887	)		(7,039,927	)

INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		11,057,537			14,953,678
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES — net		(3,063,971	)		(3,948,101	)
NET INCOME		7,993,566			11,005,577

BASIC EARNINGS PER SHARE		19.1	%		21.5	%
Net income per share		396.51			547.15
Net income per ADS (40 Series B shares per ADS)		15,860.25			21,886.00

The Full Year 2006 Results

Table 3
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (AUDITED)
FOR THE YEARS ENDED DECEMBER 31, 2005 and 2006


	2005			2006
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines		10,668,915			10,673,901
Cellular		14,825,437			20,842,406
Interconnection — net		7,403,322			8,655,917
Joint operation schemes		614,652			596,423
Data and Internet		6,952,323			8,914,019
Other services		1,445,668			1,285,275
Total cash receipts from operating revenues		41,910,317			50,967,941
Cash payments for operating expenses		(14,954,742	)		(16,465,320	)
Cash receipt (refund) from/to customers		(55,343	)		(57,580	)

Cash generated from operations		26,900,232			34,445,041

Interest received		341,848			642,959
Income tax paid		(4,938,916	)		(7,175,681	)
Interest paid		(1,200,484	)		(1,217,131	)

Net Cash Provided by Operating Activities		21,102,680			26,695,188

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of temporary investments and maturity of time deposits		227,633			46,081
Purchase of temporary investments and placements in time deposits		(226,054	)		(98,896	)
Proceeds from sale of property, plant and equipment		84,621			17,269
Proceeds from insurance claim		27,580			—
Acquisition of property, plant and equipment		(12,106,930	)		(15,900,628	)
Increase in advances for the purchase of property, plant and equipment		(212,187	)		(293,920	)
Decrease in advances and others		874			38,395
Business combinations, net of cash (paid) acquired		(4,000	)		143,648
Acquisition of intangible assets		—			(436,000	)
Proceeds from sale of long-term investments		—			22,561
Cash dividends received		—			382
Acquisition of long-term investments		(4,250	)		—

Net Cash Used in Investing Activities		(12,212,713	)		(16,461,108	)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid		(2,980,640	)		(5,371,102	)
Cash dividends paid to minority shareholders of subsidiaries		(1,694,261	)		(2,067,696	)
Increase in escrow accounts		(96,216	)		(2,073	)
Proceeds from short-term borrowings		739,153			1,020,000
Repayments of short-term borrowings		(1,733,862	)		(507,133	)
Payments for debt issuance cost		—			—
Proceeds from Medium-term Notes		—			—
Repayments of Medium-term Notes		(470,000	)		(145,000	)
Redemption of Telkomsel’s notes		(780,565	)		—
Proceeds from long-term borrowings		569,995			2,532,313
Repayments of long-term borrowings		(1,723,126	)		(1,674,516	)
Payment for purchase of treasury stock		—			(952,211	)
Repayments of promissory notes		(164,186	)		(201,307	)
Repayments of obligations under capital leases		(5,643	)		(14,095	)

Net Cash Used in Financing Activities		(8,339,351	)		(7,382,820	)

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		550,616			2,851,260

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(32,055	)		89,892

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		4,856,123			5,374,684

CASH AND CASH EQUIVALENTS AT END OF YEAR		5,374,684			8,315,836

The Full Year 2006 Results

Table 4
FINANCIAL RATIO
As of December 31, 2005 and 2006


	2005		2006		Growth (%)
1	2		3		4=(3-2)/2
Contribution of pulses to total fixed-phone revenue:
Local & Domestic Long Distance Calls (%)		67.0		64.9		(2.0	)
Monthly subscription charges (%)		30.5		31.8		1.3
Installation charges (%)		1.8		1.6		(0.3	)
Phone Card — net (%)		0.1		0.0		(0.1	)
Others (%)		0.6		1.7		1.1
Contribution to total operating revenues:
Cellular (%)		34.9		40.2		5.4
Fixed-phone (%)		25.8		21.4		(4.4	)
Revenue under JOS (%)		1.4		1.0		(0.5	)
Interconnection (%)		18.5		16.9		(1.6	)
Network (%)		1.4		1.4		(0.0	)
Data dan internet (%)		16.6		17.7		1.1
Revenue under RSA (%)		0.7		0.8		0.1
Other telecommunications services (%)		0.7		0.6		(0.1	)
ARPU Fixed line (Rp.’000)		195.7		188.5		(3.7	)
EBITDA (Rp billion)		25,660		31,716		23.6
EBITDA margin (%)		61.4		61.8		0.5
Operating margin (%)		41.1		42.1		1.0
Profit Margin (%)		19.1		21.5		2.3
Current ratio (%)		76.3		67.8		(8.5	)
Return on Assets (%)		12.9		14.6		1.8
Return on Equity (%)		34.3		39.2		4.9
Total Liabilities to Equity (%)		139.8		138.5		(1.3	)
Gearing (Net Debt to Equity) (%)		34.1		24.8		(9.3	)
Debt to Equity (%)		57.9		54.8		(3.1	)
Debt to EBITDA (%)		52.5		48.5		(4.1	)
Debt Service Ratio (Times)		7.2		4.8		(2.4	)
EBITDA to Interest Expense (times)		21.8		24.7		2.9
EBITDA to Net Debt (%)		322.7		454.9		132.2

The Full Year 2006 Results

Table 5
FIXED TELEPHONE LINE
As of December 31, 2005 and 2006


	UNIT	2005		2006		GROWTH (%)
Exchange Capacity TELKOM & KSO Division
Wireline	Lines('000)		10,184		10,440		2.52	%
Wireless	Lines('000)		3,017		6,656		120.61	%
Total Exchange Cap. TELKOM & KSO (Wireline & Wireless)	Lines('000)		13,201		17,096		29.51	%

Installed Lines TELKOM & KSO Division
Wireline	Lines('000)		9,496		9,635		1.46	%
Wireless	Lines('000)		3,673		7,698		109.56	%
Total Installed Lines TELKOM & KSO (Wireline & Wireless)	Lines('000)		13,170		17,333		31.61	%

Subscribers TELKOM & KSO Division
Wireline	Lines('000)		8,283		8,328		0.54	%
Wireless	Lines('000)		4,050		4,163		2.79	%
Total Subscribers -TELKOM & KSO Division (Wireline & Wireless)	Lines('000)		12,334		12,491		1.28	%

Public Phone TELKOM & KSO Division
Wireline	Lines('000)		403		381		-5.39	%
Wireless	Lines('000)		12		13		7.19	%
Total Public Phone TELKOM & KSO Division (Wireline & Wireless)	Lines('000)		414		394		-5.03	%

Lis Fixed TELKOM & KSO Division
Wireline	Lines('000)		8,686		8,709		0.27	%
Wireless	Lines('000)		4,062		4,176		2.81	%
Total Lines In Services TELKOM & KSO Division (Wireline & Wireless)	Lines('000)		12,748		12,885		1.08	%

Table 6
PRODUCTION
As of December 31, 2005 and 2006


	UNIT	2005		2006		Growth (%)
Subscriber TELKOM & KSO Division
Wireline	Pulses(mn)		67,668		64,012		-5.4	%
Wireless (exclude data & sms)	second(mn)		213,210		330,714		55.1	%
Total Subscriber Production — TELKOM & KSO Division (Wireline & Wireless)

Public Phone — TELKOM & KSO Division
Wireline	Pulses(mn)		12,998		9,188		-29.3	%
Wireless (exclude data & sms)	second(mn)		7,635		6,223		-18.5	%
Total Public Phone Production — TELKOM & KSO Division (Wireline & Wireless)

Lines in Services — Production
Wireline	Pulses(mn)		80,667		73,200		-9.3	%
Wireless (exclude data & sms)	second(mn)		220,845		336,937		52.6	%
Total LIS’s Pulse Production TELKOM & KSO Division (Wireline & Wireless)

Productivity Per Average Subscriber Line
Wireline	Pulses/Line		8,241		7,707		-6.5	%
Wireless	second/Line		77,873		80,530		3.4	%
Pulses Per Avrg,Subscr,Line ( TELKOM & KSO Division )

Productivity Per Average LIS
Wireline	Pulses/Line		9,355		8,416		-10.0	%
Wireless	second/Line		80,435		81,804		1.7	%

The Full Year 2006 Results

Table 7
FLEXI PERFORMANCE
As of December 31, 2005 and 2006


	Unit	2005		2006			Growth (%)
Customer base:
Postpaid	Subs ('000)		821		794			(3.3	)
Prepaid	Subs ('000)		3,241		3,381			4.3
Total	Subs ('000)		4,062		4,176			2.8

Net additions:
Postpaid	Subs ('000)		145		(27	)		(118.5	)
Prepaid	Subs ('000)		2,495		141			(94.4	)
Total	Subs ('000)		2,640		114			(95.7	)

Sales:
Postpaid	Subs ('000)		475		261			(45.1	)
Prepaid	Subs ('000)		3,558		3,175			(10.8	)
Total	Subs ('000)		4,034		3,436			(14.8	)

ARPU (12 months avrg):
Postpaid	Rp'000		123		135			9.6
Prepaid	Rp'000		19		35			84.8
Blended	Rp'000		47		54			14.7

Network:
BTS	Unit		1,448		1,531			5.7

Number city in service	city		231		236			2.2

The Full Year 2006 Results

Table 8
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
BALANCE SHEET
As of December 31, 2005 and 2006
(In Billions of rupiah)


	2005		2006
	Rp .		Rp .		Growth
ASSETS
CURRENT ASSETS
Cash and cash equivalents		1,861		2,084		12	%
Acct./Unbilled receivables		651		794		22	%
Prepayments		419		643		53	%
Others		117		450		285	%
Total Current Assets		3,048		3,971		30	%

NON-CURRENT ASSETS
Long-term investment		9		9		0	%
Property, plant & equipment — net		21,993		31,706		44	%
Advances for PPE		239		339		42	%
Equipment not used in operations — net		—		199		0	%
Intangible assets — net		—		425		0	%
Others		458		652		42	%
Total Non-current Assets		22,699		33,330		47	%
TOTAL ASSETS		25,747		37,301		45	%

CURRENT LIABILITIES
Short-term loans		170		667		292	%
Accounts payable & Accr. liabilities		3,092		5,568		80	%
Taxes payable		1,541		1,266		-18	%
Unearned revenue		1,419		1,774		25	%
Curr. maturities of med/long-term loans		323		1,313		307	%
Total Current Liabilities		6,545		10,588		62	%

NON-CURRENT LIABILITIES
Med/long-term loans — net of current maturities		504		1,674		232	%
Deferred tax liabilities		897		1,841		105	%
Others		61		125		105	%
Total Non-current Liabilities		1,462		3,640		149	%

EQUITY
Capital stock — Rp 1,000,000 par value Authorized - 650,000 shares Issued and fully paid - 182,570 shares		183		183		0	%
Additional paid-in capital		1,505		1,505		0	%
Retained earnings		16,052		21,385		33	%
Total Equity		17,740		23,073		30	%

TOTAL LIAB. & STOCKHOLDERS’ EQUITY		25,747		37,301		45	%

The Full Year 2006 Results

Table 9
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
INCOME STATEMENT
As of December 31, 2005 and 2006
(In Billions of rupiah)


	2005			2006
	Rp .			Rp .			Growth
OPERATING REVENUES
Post-paid		4,529			4,886			8	%
Prepaid		17,665			25,548			45	%
International roaming		846			820			-3	%
Interconnection revenues		3,054			3,644			19	%
Gross Operating Revenues		26,094			34,898			34	%
Less:
- Discounts		2,084			2,432			17	%
- Intercon. / intl. roam. / data provider charges		2,877			3,321			15	%
Net Operating Revenues		21,133			29,145			38	%

OPERATING EXPENSES
Personnel		710			1,174			65	%
Operation & maintenance		2,742			4,367			59	%
General & administrative		620			714			15	%
Marketing & selling		488			705			44	%
Other cost of services		1,165			1,448			24	%
Depreciation and amortization		3,047			4,428			45	%
Total Operating Expenses		8,772			12,836			46	%

EBIT (EARNINGS BEFORE INTEREST & TAXES)		12,361			16,309			32	%
OTHER INCOME/(EXPENSES)
Interest income & financing charges		17			(85	)		-600	%
Foreign exchange gain/(loss)		(88	)		121			238	%
Others — net		56			(179	)		-420	%
Other income/(expenses) — net		(15	)		(143	)		-853	%

INCOME BEFORE TAX		12,346			16,166			31	%
PROVISION FOR INCOME TAX		3,699			4,984			35	%
NET INCOME		8,647			11,182			29	%

EBITDA		15,408			20,737			35	%
EBITDA Margin — over gross revenues		59	%		59	%		0	%
EBITDA Margin — over net revenues		73	%		71	%		-2	%

ROA		38	%		35	%		-3	%
ROE		55	%		55	%		0	%

The Full Year 2006 Results

Table 10
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
OPERATIONAL INDICATORS
As of December 31, 2005 and 2006


	Unit	2005		2006		Growth
CUSTOMER BASE
Net Additions
kartuHALO	Subscriber (000)		143		191		33.6	%
simPATI	Subscriber (000)		4,447		5,374		20.8	%
Kartu As	Subscriber (000)		3,389		5,763		70.1	%
Total	Subscriber (000)		7,979		11,328		42.0	%
Customer base
kartuHALO	Subscriber (000)		1,471		1,662		13.0	%
simPATI	Subscriber (000)		16,004		21,378		33.6	%
Kartu As	Subscriber (000)		6,794		12,557		84.8	%
Total	Subscriber (000)		24,269		35,597		46.7	%

MOU (chargeable minutes of use) — total	billion minutes		10.5		18.2		73.3	%

ARPU
Total (12 months average)
kartuHALO	Rp.'000 per mo.		291		274		-5.8	%
simPATI	Rp.'000 per mo.		84		83		-1.2	%
Kartu As	Rp.'000 per mo.		45		54		20.0	%
Blended	Rp.'000 per mo.		87		84		-3.4	%
Non-voice/Data (12 months average)
kartuHALO	Rp.'000 per mo.		47		47		0.0	%
simPATI	Rp.'000 per mo.		25		24		-4.0	%
Kartu As	Rp.'000 per mo.		15		18		20.0	%
Blended	Rp.'000 per mo.		24		23		-4.2	%

NETWORK DATA
Network capacity
Base stations installed (GSM/DCS/3G)	Unit		9,895		16,057		62.3	%
Overall capacity all network elements	Subs. mln.		26.2		38.8		48.1	%

EMPLOYEE DATA
Total employees	person		3,566		3,797		6.5	%
Efficiency ratio	Subs/employee		6,806		9,375		37.8	%

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