6-K 1 u93038e6vk.htm PT TELEKOMUNIKASI INDONESIA

PT TELEKOMUNIKASI INDONESIA

Table of Contents

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

Table of Contents

SIGNATURES

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

		Perusahaan Perseroan (Persero)
		PT TELEKOMUNIKASI INDONESIA
		(Registrant)
Date May 30, 2007		By		/s/ Harsya Denny Suryo
				(Signature)
				Harsya Denny Suryo
		Vice President Investor Relation & Corporate Secretary

Table of Contents

THE FIRST QUARTER 2007 RESULT (UNAUDITED)
May 30, 2007

TICKERS:
NYSE : TLK
LSE : TKIA
JSX : TLKM

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

SHARE IN ISSUES:
20,1499,999,280 shares

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

CONVERSION RATES (US$ 1.00):
2006 = Rp 9,060.0 (Mar 31, 2006)
2007 = Rp.9,060.0 (Mar 31, 2007)

NOTABLE FIGURES:

n		EBITDA Margin consolidated remain 60.6%
n		Operating revenue grew by 22.8%
n		Telkomsel maintained its position as a market leader with more than 50% of market share with 38.9 million subscribers

TELKOM FINANCIAL
INDICATORS – Q1/07
(in Rp.Tn)

FINANCIAL HIGHLIGHT (Consolidated):

		Q1/06				Q1/07				Growth
Key Indicators		(Rp Billion)				(Rp Billion)				(%)
Operating Revenues			11,817				14,509				22.8
Operating Expenses			6,239				8,338				33.6
Operating Income (EBIT)			5,577				6,171				10.6
EBITDA (Rp.billion)			7,890				8,798				11.5
Net Income (NI)			3,460				3,042				-12.1
Net Income / Share (Rp)			171.65				152.03				-11.4
Net Income / ADS (Rp)			6,865.95				6,081.20				-11.4
EBITDA Margin (%)			66.77				60.64				-6.1
(%)

FIXED LINE LIS vs CELLULAR SUBSCRIBERS
Q1/07
(in million)

OPERATIONAL HIGHLIGHT:

														Growth
Description		Unit				Q1/06				Q1/07				(%)
TELKOM
LIS Wireline			(000	)			8,688				8,705				0.2
LIS Wireless (Flexi)			(000	)			3,103				4,596				48.1
Total			(000	)			11,791				13,301				12.8
TELKOMSEL
Customer :
kartuHALO			(000	)			1,533				1,714				11.8
SimPati			(000	)			17,827				21,247				19.2
Kartu As			(000	)			7,591				15,942				110.0
Total			(000	)			26,951				38,903				44.3
(%)

* 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

Table of Contents

First Quarter 2007 Results (Unaudited)

2

PT. TELEKOMUNIKASI INDONESIA, Tbk.
ANNOUNCEMENT FOR
THE FIRST QUARTER OF 2007 RESULTS (Un-audited)

Jakarta, May 30, 2007 — PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), has announced its operational and un-audited consolidated financial statements results for the first quarter of 2007. All financial figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP).

Financial Result

Profit and Loss Statement

Financial results as of March 31, 2007 compared to the same period ended March 31, 2006.

Operating Revenues increased by Rp. 2,692.2 billion or 22.8% compared to the same period last year, summarized as follows:

Revenues Contribution
Q1/07:

§		Cellular Revenues increased by Rp. 1,071.9 billion or 23.8% compared to the same figure last year, mainly due to the increase in Telkomsel’s subscribers by 44.3% to 38.9 million.
§		Data and Internet Revenues increased by Rp. 770.2 billion or 35.8% compared to the same figure last year, mainly due to the growth in TelkomNet Instan usage by 18.5% to 951.8 million minutes. The growth was also contributed from the increase of Flexi SMS production by 87.5% to 417.8 million SMS.
§		Interconnection Revenues. In line with market practice, this year, we reported our revenue on a gross basis. This reporting format has resulted in an increase in operating revenues and at the same time, an increase in interconnection expenses. Base on net-net comparation, the growth in Interconnection revenue was mainly due to the growth of local and DLD pulse production of interconnection from PSTN to cellular.

Table of Contents

First Quarter 2007 Results (Unaudited)

3

		Net basis												Gross basis
Account		2006				2007				Growth(%)				2006				2007				Growth(%)
Revenue(Rp.bn)			2,044.3				2,129.0				4.1				2,570.5				2,790.4				8.6
EBITDA(Rp.bn)			7,890.3				8,798.1				11.5				7,890.3				8,798.1				11.5
EBITDA Margin(%)			66.8				63.5				-3.3				63.9				60.6				-3.3

Operating Expenses increased by Rp. 2,099.0 billion or 33.6%, summarized as follows:

Expenses Contribution
Q1/07:

§ Operation & Maintenance Expense increased by Rp. 578.8 billion or 36.9%, mainly due to the increase in Concession fees and Radio Frequency charges as a result from the increase in number of BTS and RBS

§ Interconnection Expense increased by Rp.661.5 billion, due to the implementing new cost base scheme since early this year.

§ Personnel expenses increased by Rp.377.4 billion, or 22.5%. The main contributors were the increase in vacation pay, incentives and other benefits expenses, salaries and related benefit expenses.

§ Depreciation Expense increased by Rp.281.3 billion or 13.5%, as a result of new installations of fixed assets mainly from Telkomsel’s assets.

§ General & Administrative Expense increased by Rp. 125.0 billion, or 17.8%, mainly due to the increase in social contribution, training and education and also from provision for doubtful accounts.

As of the period ended March 31, 2007, TELKOM recorded Operating Income of Rp.6,170.8 billion or increased by 10.6% compared to the same period last year and EBITDA of Rp. 8,798 billion or increased by 11.5%

CAPITAL EXPENDITURE

During the first quarter 2007, Telkom and Telkomsel added fixed-assets for network infrastructure and other investment from its Capex amounting to Rp.386 billion and Rp.4.09 trillion, respectively.

CONSOLIDATED DEBT

As of March 31, 2007, the breakdown of debt portfolio (short-term and

Table of Contents

First Quarter 2007 Results (Unaudited)

4

long-term) in foreign currencies and Rupiah equivalents were as follows:

		Original (in million)								Rp (in billion)								Portion (%)
Currencies		1Q/06				1Q/07				1Q/06				1Q/07				1Q/06				1Q/07
IDR / Rupiah (billion)			4,222.0				7,039.3				4,222.0				7,039.3				33	%			50	%
U.S. Dollar			765.0				0.6				6,939.0				5,784.0				54	%			41	%
Japanese Yen			15,528.0				14.4				1,197.0				1,112.1				9	%			8	%
EURO			37.0				0.0				400.0				268.0				3	%			2	%
Total											12,758				14,203				100	%			100	%

TELKOM hedged its foreign currency exposures through time deposit placements, mainly in US Dollars. As of March 31, 2007, the Company’s deposits covered approximately 36.5% of foreign debts from April 1, 2007 to March 31, 2008.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of March 31, 2007, TELKOM recorded 13.3 million fixed lines in service, consisting of 8.7 million fixed wireline and 4.6 million fixed wireless.

During the first quarter 2007, penetration rate for fixed wireline and fixed wireless was 5.3% and 4.76% for the first quarter 2006 and 2007, respectively.

Fixed-Wireless CDMA Services

As of March 31, 2007, TELKOMFlexi contributed to TELKOM revenues in the amount of Rp 371 billion. At the same time, TELKOMFlexi was available in 236 cities with 1,552 BTS and 4.6 million subscribers.

For detail information of TELKOMFlexi performance as of March 31, 2007, please see attachment on Table 7.

TELKOM International Call 007 (TIC-007)

As of March 31, 2007, TIC-007 has generated Rp 109 billion in revenues (gross basis), from TIC-007 outgoing call revenues, outgoing and incoming interconnection revenues. TELKOM also recorded incoming and outgoing international traffics of 234.2 million minutes and 38.2 million minutes, respectively.

Table of Contents

First Quarter 2007 Results (Unaudited)

5

Cellular Services

Telkomsel is the largest mobile communication company in Indonesia with more than 50% subscriber’s market share, and total subscribers of 38.9 million as of March 31, 2007.

Data and Internet Services

In the first quarter 2007, an average 688,630 telephone subscribers accessed to Telkomnet Instan and premium prepaid dial-up internet services per month. Subscribers utilized a total 951.8 million minutes of Telkomnet Instan or increased by 18.5% from the same period last year.

Broadband Services (Speedy)

As of March 31, 2007, there were 115,821 broadband internet access subscribers. The revenues from Speedy service for the first quarter 2007 has reached Rp.101 billion.

Human Resource

As of March 31, 2007, the total number of employees at TELKOM (as a single entity) was 27,599 persons.

Productivity per employee as measured by the number of fixed lines in service per employee as of March 31, 2007 was 482 compare to 421 for 2005 or increased by 14.6%.

Corporate Secretary,

HARSYA DENNY SURYO

Table of Contents

First Quarter 2007 Results (Unaudited)

 6

Table 1
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of March 31, 2006 and 2007
(in millions Rupiah)

		2006				2007
ASSETS
CURRENT ASSETS
Cash and cash equivalents			6,998,989				7,363,462
Temporary investments			23,507				85,846
Trade receivables
Related parties — net of allowance for doubtful accounts of Rp89,533 million in 2006 and Rp91,803 million in 2007			545,190				535,544
Third parties — net of allowance for doubtful accounts of Rp603,454 million in 2006 and Rp691,513 million in 2007			3,057,131				2,961,961
Other receivables — net of allowance for doubtful accounts of Rp3,290 million in 2006 and Rp1,591 million in 2007			163,119				149,412
Inventories — net of allowance for obsolescence of Rp50,251 million in 2006 and Rp49,629 million in 2007			305,677				207,166
Prepaid expenses			1,243,650				1,728,970
Claim for tax refund			—				359,582
Prepaid taxes			9,265				26,896
Other current assets			154,016				4,623
Total Current Assets			12,500,544				13,423,462
NON-CURRENT ASSETS
Long-term investments — net			102,559				92,174
Property, plant and equipment — net of accumulated depreciation of Rp39,155,365 million in 2006 and Rp47,390,018 million in 2007			45,794,154				56,368,870
Property, plant and equipment under revenue-sharing arrangements — net of accumulated depreciation of Rp475,983 million in 2006 and Rp534,746 million in 2007			531,343				924,267
Prepaid pension benefit cost			460				103
Advances and other non-current assets			319,063				721,029
Goodwill and other intangible assets — net of accumulated amortization of Rp3,000,992 million in 2006 and Rp3,971,474 million in 2007			4,692,467				4,173,722
Escrow accounts			9,626				1,387
Total Non-current Assets			51,449,672				62,281,552
TOTAL ASSETS			63,950,216				75,705,014

Table of Contents

First Quarter 2007 Results (Unaudited)

 7

Table 1 ( continued)
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of March 31, 2006 and 2007

		2006				2007
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade payables
Related parties			899,175				874,351
Third parties			2,898,319				6,335,820
Other payables			43,340				32,552
Taxes payable			1,604,126				1,507,519
Dividends payable			3,276				1,380
Accrued expenses			1,779,153				2,578,363
Unearned income			1,709,330				2,154,127
Advances from customers and suppliers			284,269				236,942
Short-term bank loans			6,800				357,133
Current maturities of long-term liabilities			2,191,582				4,714,280
Total Current Liabilities			11,419,370				18,792,467
NON-CURRENT LIABILITIES
Deferred tax liabilities — net			2,427,478				2,708,336
Unearned income on revenue-sharing arrangements			394,511				749,254
Unearned initial investor payments under joint operation scheme			4,979				—
Accrued long service award			534,146				602,009
Accrued post-retirement health care benefits			3,058,973				2,826,770
Accrued pension and other post-retirement benefits costs			1,272,084				1,011,304
Long-term liabilities — net of current maturities
Obligations under capital leases			227,179				208,000
Two-step loans — related party			4,383,425				3,879,111
Notes and bonds			1,458,024				—
Bank loans			2,053,425				2,018,614
Deferred consideration for business combinations			2,689,627				3,256,028
Total Non-current Liabilities			18,503,851				17,259,426
MINORITY INTEREST			7,271,762				9,230,848
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 20,159,999,280 Series B shares			5,040,000				5,040,000
Additional paid-in capital			1,073,333				1,073,333
Treasury stock (191,915,500 shares)			—				(1,641,680	)
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			236				9,708
Translation adjustment			233,241				227,669
Retained earnings
Appropriated			1,803,397				1,803,397
Unappropriated			18,129,431				23,344,251
Total Stockholders’ Equity			26,755,233				30,422,273
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			63,950,216				75,705,014

Table of Contents

First Quarter 2007 Results (Unaudited)

 8

Table 2
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2006 AND 2007

		2006				2007
OPERATING REVENUES
Telephone
Fixed lines			2,731,908				2,867,576
Cellular			4,507,915				5,579,802
Interconnection — net			2,044,258				2,790,382
Joint operation schemes			161,690				—
Data and Internet			2,150,867				2,921,030
Network			134,749				208,754
Revenue-sharing arrangements			75,465				132,672
Other telecommunications services			10,099				8,984
Total Operating Revenues			11,816,951				14,509,200
OPERATING EXPENSES
Personnel			1,677,299				2,054,655
Depreciation			2,083,228				2,364,489
Interconnection			—				661,467
Operations, maintenance and telecommunication services			1,570,424				2,149,251
General and administrative			702,946				827,934
Marketing			205,558				280,644
Total Operating Expenses			6,239,455				8,338,440
OPERATING INCOME			5,577,496				6,170,760
OTHER INCOME (EXPENSES)
Interest income			152,337				144,899
Interest expense			(280,504	)			(384,259	)
Gain (loss) on foreign exchange — net			773,825				(86,422	)
Equity in net income (loss) of associated companies			(855	)			2,977
Others — net			77,080				86,991
Other income (expenses) — net			721,883				(235,814	)
INCOME BEFORE TAX			6,299,379				5,934,946
TAX (EXPENSE) BENEFIT
Current tax			(1,840,844	)			(1,810,967	)
Deferred tax			(35,584	)			(42,939	)
			(1,876,428	)			(1,853,906	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES			4,422,951				4,081,040
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES — net			(962,511	)			(1,038,830	)
NET INCOME			3,460,440				3,042,210
BASIC EARNINGS PER SHARE
Net income per share			171.65				152.03
Net income per ADS (40 Series B shares per ADS)			6,865.95				6,081.20

Table of Contents

First Quarter 2007 Results (Unaudited)

 9

Table 3
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2006 AND 2007

		2006				2007
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines			3,184,187				3,327,022
Cellular			4,006,907				5,643,370
Interconnection — net			2,127,606				1,765,304
Joint operation schemes			157,658				(15,092	)
Data and Internet			2,163,652				2,863,295
Other services			143,287				323,254
Total cash receipts from operating revenues			11,783,297				13,907,153
Cash payments for operating expenses			(2,650,034	)			(6,911,684	)
Cash receipt (refund) from/to customers			119,262				81,251
Cash generated from operations			9,252,525				7,076,720
Interest received			135,766				155,172
Income tax paid			(3,889,069	)			(2,757,061	)
Interest paid			(214,559	)			(354,297	)
Net Cash Provided by Operating Activities			5,284,663				4,120,534
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of temporary investments and placements in time deposits			(458	)			(511	)
Proceeds from sale of property, plant and equipment			1,695				2,481
Acquisition of property, plant and equipment			(3,482,781	)			(3,923,616	)
Increase in advances for the purchase of property, plant and equipment			88,112				683,882
Decrease in advances and others			97,312				197,853
Acquisition of intangible assets			(436,000	)			—
Cash dividends received			—				766
Net Cash Used in Investing Activities			(3,732,120	)			(3,039,145	)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in escrow accounts			(14,026	)			686
Proceeds from short-term borrowings			—				23,000
Repayments of short-term borrowings			(297,484	)
Proceeds from Medium-term Notes			(144,342	)			(99,165	)
Proceeds from long-term borrowings			720,595
Repayments of long-term borrowings			(144,621	)			(1,212,366	)
Payment for purchase of treasury stock			—				(689,468	)
Repayments of promissory notes
Repayments of obligations under capital leases			(7,597	)
Net Cash Used in Financing Activities			112,525				(1,977,313	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS			1,665,068				(895,924	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			(40,763	)			(56,450	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR			5,374,684				8,315,836
CASH AND CASH EQUIVALENTS AT END OF YEAR			6,998,989				7,363,462

Table of Contents

First Quarter 2007 Results (Unaudited)

 10

Table 4
FINANCIAL RATIO
As of March 31, 2006 and 2007

		2006				2007				Growth (%)
Contribution of pulses to total fixed-phone revenue:
Local & Domestic Long Distance Calls (%)			66.93				64.74				(2.2	)
Monthly subscription charges (%)			31.28				32.21				0.9
Installation charges (%)			1.62				1.11				(0.5	)
Phone Card — net (%)			0.01				0.02				0.0
Others (%)			0.15				1.92				1.8
Contribution to total operating revenues:
Cellular (%)			38.15				38.46				0.3
Fixed-phone (%)			23.12				19.76				(3.4	)
Revenue under JOS (%)			1.37				—				(1.4	)
Interconnection (%)			17.30				19.23				1.9
Network (%)			1.14				1.44				0.3
Data dan internet (%)			18.20				20.13				1.9
Revenue under RSA (%)			0.64				0.91				0.3
Other telecommunications services (%)			0.09				0.06				(0.0	)
ARPU fixed line (000)			165				168				0.0
EBITDA (Rp billion)			7,890				8,798				11.5
EBITDA margin (%)			66.77				60.64				(6.1	)
Operating margin (%)			47.20				42.53				(4.7	)
Profit Margin (%)			29.28				20.97				(8.3	)
Current ratio (%)			109.47				71.43				(38.0	)
Return on Assets (%)			5.41				4.02				(1.4	)
Return on Equity (%)			12.93				10.00				(2.9	)
Total Liabilities to Equity (%)			111.84				118.50				6.7
Gearing (Net Debt to Equity) (%)			21.40				22.20				0.8
Debt to Equity (%)			47.69				46.69				(1.0	)
Debt to EBITDA (%)			161.70				161.44				(0.3	)
Debt Service Ratio (Times)			3.21				1.62				(1.6	)
EBITDA to Interest Expense (times)			28.13				22.90				(5.2	)
EBITDA to Net Debt (%)			137.79				130.29				(7.5	)

Table of Contents

First Quarter 2007 Results (Unaudited)

11

Table 5
FIXED TELEPHONE LINE
As of March 31, 2006 and 2007

												GROWTH
		UNIT		2006				2007				( % )
1		2		3				4				5=(4-3)/3
Exchange Capacity TELKOM Division
Wireline		Lines '000			9,237				10,412				12.7
Wireless		Lines '000			4,125				6,656				61.4
Total Exchange Cap. TELKOM (Wireline & Wireless)		Lines '000			13,362				17,067				27.7
Exchange Capacity KSO Division
Wireline		Lines '000			1,048				—
Wireless (MSC)		Lines '000			347				—
Total Exchange Cap. KSO (Wireline & Wireless)		Lines '000			1,395				—
Exchange Capacity TELKOM & KSO Division
Wireline		Lines '000			10,285				10,412				1.2
Wireless		Lines '000			4,472				6,656				48.8
Total Exchange Cap. TELKOM & KSO (Wireline & Wireless)		Lines '000			14,757				17,067				15.7
Installed Lines TELKOM Division
Wireline		Lines '000			8,582				9,561				11.4
Wireless		Lines '000			3,359				7,789				131.9
Total Installed Lines TELKOM (Wireline & Wireless)		Lines '000			11,942				17,351				45.3
Installed Lines KSO Division
Wireline		Lines '000			1,005				—
Wireless		Lines '000			345				—
Total Installed Lines KSO (Wireline & Wireless)		Lines '000			1,350				—
Installed Lines TELKOM & KSO Division
Wireline		Lines '000			9,587				9,561				(0.3	)
Wireless		Lines '000			3,705				7,789				110.3
Total Installed Lines TELKOM & KSO (Wireline & Wireless)		Lines '000			13,292				17,351				30.5
Subscribers TELKOM Division
Wireline		Lines '000			7,422				8,326				12.2
Wireless		Lines '000			2,806				4,584				63.4
Total Subscribers TELKOM Division (Wireline & Wireless)		Lines '000			10,227				12,909				26.2
Subscribers KSO Division
Wireline		Lines '000			875				—
Wireless		Lines '000			285				—
Total Subscribers KSO Division (Wireline & Wireless)		Lines '000			1,160				—
Subscribers TELKOM & KSO Division
Wireline		Lines '000			8,297				8,326				0.3
Wireless		Lines '000			3,091				4,584				48.3
Total Subscribers -TELKOM & KSO Division (Wireline & Wireless)		Lines '000			11,388				12,909				13.4
Public Phone TELKOM Division
Wireline		Lines '000			362				379				4.6
Wireless		Lines '000			12				13				3.0
Total Public Phone TELKOM Division (Wireline & Wireless)		Lines '000			375				392				4.6
Public Phone KSO Division
Wireline		Lines '000			29				—
Wireless		Lines '000			—				—
Total Public Phone KSO Division (Wireline & Wireless)		Lines '000			29				—
Public Phone TELKOM & KSO Division
Wireline		Lines '000			391				379				(3.0	)
Wireless		Lines '000			12				13				3.0
Total Public Phone TELKOM & KSO Division (Wireline & Wireless)		Lines '000			403				392				(2.8	)
Lis Fixed TELKOM Division
Wireline		Lines '000			7,784				8,705				11.8
Wireless		Lines '000			2,818				4,596				63.1
Total Lines In Services TELKOM (Wireline & Wireless)		Lines '000			10,602				13,301				25.5
Lis Fixed KSO Division
Wireline		Lines '000			904				—
Wireless		Lines '000			285				—
Total Lines In Services KSO (Wireline & Wireless)		Lines '000			1,189				—
Lis Fixed TELKOM & KSO Division
Wireline		Lines '000			8,688				8,705				0.2
Wireless		Lines '000			3,103				4,596				48.1
Total Lines In Services TELKOM & KSO Division (Wireline & Wireless)		Lines '000			11,791				13,301				12.8

Table of Contents

First Quarter 2007 Results (Unaudited)

12

Table 6
PRODUCTION
As of March 31, 2006 and 2007

		UNIT		2006				2007				GROWTH
Production :
Subscriber -TELKOM Division
Wireline		Pulses (mn)			14,090				19,523				38.6	%
Wireless (exclude data & sms)		second (mn)			56,389				113,519				101.3	%
Total Subscriber Production — TELKOM (Division Wireline & Wireless)
Subscriber -KSO Division
Wireline		Pulses (mn)			2,194				—
Wireless (exclude data & sms)		second (mn)			4,774				—
Total Subscriber Production — KSO Division (Wireline & Wireless)
Subscriber TELKOM & KSO Division
Wireline		Pulses (mn)			16,283				19,523				19.9	%
Wireless (exclude data & sms)		second (mn)			61,163				113,519				85.6	%
Total Subscriber Production — TELKOM & KSO Division (Wireline & Wireless)
Public Phone -TELKOM Division
Wireline		Pulses (mn)			2,271				1,936				-14.8	%
Wireless (exclude data & sms)		second (mn)			1,532				916				-40.2	%
Total Public Phone Production — TELKOM Division (Wireline & Wireless)
Public Phone — KSO Division
Wireline		Pulses (mn)			356				—
Wireless (exclude data & sms)		second (mn)
Total Public Phone Production — KSO Division (Wireline & Wireless)
Public Phone — TELKOM & KSO Division
Wireline		Pulses (mn)			2,628				1,936				-26.3	%
Wireless (exclude data & sms)		second (mn)			1,532				916				-40.2	%
Total Public Phone Production — TELKOM & KSO Division (Wireline & Wireless)
Lines in Services — Production
Wireline		Pulses (mn)			18,911				21,459				13.5	%
Wireless (exclude data & sms)		second (mn)			62,695				114,435				82.5	%
Total LIS’s Pulse Production TELKOM & KSO Division (Wireline & Wireless)
Productivity Per Average Subscriber Line
Wireline		Pulses/Line			1,964				2,345				19.4	%
Wireless		second/Line			17,129				25,956				51.5	%
Pulses Per Avrg,Subscr,Line ( TELKOM & KSO Division )
Productivity Per Average LIS
Wireline		Pulses/Line			2,177				2,465				13.2	%
Wireless		second/Line			17,500				26,091				49.1	%
Pulses Per Average LIS ( TELKOM & KSO Division )

Table of Contents

First Quarter 2007 Results (Unaudited)

13

Table 7
FLEXI PERFORMANCE
As of March 31, 2006 and 2007

		UNIT		2006				2007				Growth (%)
Customer base
Postpaid		SSF ("000)			801				786				-1.9
Prepaid		SSF ("000)			2,302				3,810				65.5
Total/Blended		SSF ("000)			3,103				4,596				48.1
Net additional
Postpaid		SSF ("000)			(20	)			(8	)			-58.6
Prepaid		SSF ("000)			(938	)			429				145.7
Total/Blended		SSF ("000)			(958	)			420				143.9
Sales
Postpaid		SSF ("000)			52				56				7.0
Prepaid		SSF ("000)			578				1,006				74.2
Total/Blended		SSF ("000)			630				1,062				68.6
ARPU
Postpaid		Rp (000)			141				115				-18.5
Prepaid		Rp (000)			40				46				15.4
Total/Blended		Rp (000)			63				58				-6.9
NETWORK
BTS		BTS			1,460				1,552				6.3
Coverage		Cities			234				236				0.9

Table of Contents

First Quarter 2007 Results (Unaudited)

14

Table 8
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
BALANCE SHEET
As of March 31, 2006 and 2007
(In Billions of rupiah)

		2006				2007				Growth
ASSETS:
CURRENT ASSETS
Cash and cash equivalents			2,174				2,380				9	%
Acct./Unbilled receivables			697				794				14	%
Prepayments			738				1,208				64	%
Others			189				445				135	%
Total Current Assets			3,798				4,827				27	%
NON-CURRENT ASSETS
Long-term investment			9				9				0	%
Property, plant & equipment — net			22,706				34,402				52	%
Advances for PPE			155				265				71	%
Equipment not used in operations — net			458				150				-67	%
Intangible assets — net			429				413				-4	%
Others			30				30				0	%
Total Non-current Assets			23,787				35,269				48	%
TOTAL ASSETS			27,585				40,096				45	%
CURRENT LIABILITIES
Short-term loans			—				333				—
Accounts payable & Accr. liabilities			2,378				6,534				175	%
Taxes payable			853				712				-17	%
Unearned revenue			1,349				1,857				38	%
Curr. maturities of med/long-term loans			300				1,320				340	%
Total Current Liabilities			4,880				10,756				120	%
NON-CURRENT LIABILITIES
Med/long-term loans — net of current maturities			1,168				1,177				1	%
Deferred tax liabilities			945				1,956				107	%
Others			66				137				108	%
Total Non-current Liabilities			2,179				3,270				50	%
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			18,838				24,382				29	%
Total Equity			20,526				26,070				27	%
TOTAL LIAB. & STOCKHOLDERS’ EQUITY			27,585				40,096				45	%

Table of Contents

First Quarter 2007 Results (Unaudited)

15

Table 9
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
INCOME STATEMENT
As of March 31, 2006 and 2007
(In Billions of rupiah)

		2006				2007				Growth
OPERATING REVENUES
Post-paid			1,170				1,265				8	%
Prepaid			5,592				7,338				31	%
International roaming			201				201				0	%
Interconnection revenues			847				748				-12	%
Gross Operating Revenues			7,810				9,552				22	%
Less:
- Discounts			536				655				22	%
- Intercon. / intl. roam. / data provider charges			744				690				-7	%
Net Operating Revenues			6,530				8,207				26	%
OPERATING EXPENSES
Personnel			221				323				46	%
Operation & maintenance			880				1,448				65	%
General & administrative			165				177				7	%
Marketing & selling			155				193				25	%
Other operating expenses			310				402				30	%
Depreciation and amortization			939				1,323				41	%
Total Operating Expenses			2,670				3,866				45	%
EBIT (EARNINGS BEFORE INTEREST & TAXES)			3,860				4,341				12	%
OTHER INCOME/(EXPENSES)
Interest income & financing charges			15				(68	)			-553	%
Foreign exchange gain/(loss)			121				4				-97	%
Others — net			(18	)			(1	)			94	%
Other income/(expenses) — net			118				(65	)			155	%
INCOME BEFORE TAX			3,978				4,276				7	%
PROVISION FOR INCOME TAX			1,192				1,279				7	%
NET INCOME			2,786				2,997				8	%
EBITDA			4,799				5,664				18	%
EBITDA Margin — over gross revenues			61	%			59	%			-2	%
EBITDA Margin — over net revenues			73	%			69	%			-4	%
ROA			39	%			34	%			-5	%
ROE			53	%			49	%			-4	%

Table of Contents

First Quarter 2007 Results (Unaudited)

16

Table 10
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
OPERATIONAL INDICATORS
As of March 31, 2006 and 2007

		Unit		2006				2007				Growth
CUSTOMER BASE
Net Additions
kartuHALO		Subscriber (000)			62				52				-16	%
simPATI		Subscriber (000)			1,822				(131	)			-107	%
Kartu As		Subscriber (000)			797				3,384				325	%
Total		Subscriber (000)			2,681				3,305				23	%
Customer base
kartuHALO		Subscriber (000)			1,533				1,714				12	%
simPATI		Subscriber (000)			17,827				21,247				19	%
Kartu As		Subscriber (000)			7,591				15,942				110	%
Total		Subscriber (000)			26,951				38,903				44	%
MOU (chargeable minutes of use) — total		billion minutes			3.7				5.4				46	%
ARPU
Total (3 months average)
kartuHALO		Rp.'000 per mo.			274				263				-4	%
simPATI		Rp.'000 per mo.			84				78				-7	%
Kartu As		Rp.'000 per mo.			51				55				8	%
Blended		Rp.'000 per mo.			86				77				-10	%
Non-voice/Data (3 months average)
kartuHALO		Rp.'000 per mo.			46				47				2	%
simPATI		Rp.'000 per mo.			25				22				-12	%
Kartu As		Rp.'000 per mo.			17				19				12	%
Blended		Rp.'000 per mo.			24				22				-8	%
NETWORK DATA
Network capacity
Base stations installed (GSM/DCS/3G)		Unit			10,770				17,644				64	%
Overall capacity all network elements		Subs. mln.			28.9				41.9				45	%
Quality of service
Call success rate		%			94.65	%			95.49	%			0.84	%
Call completion rate		%			99.29	%			99.47	%			0.18	%
EMPLOYEE DATA
Total employees		person			3,557				3,865				9	%
Efficiency ratio		Subs/employee			7,577				10,065				33	%