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 08

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): 82- ]

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 23, 2008		By	/s/ Harsya Denny Suryo
				(Signature)

		Harsya Denny Suryo
		Vice President Investor Relation & Corporate Secretary


THE YEAR END OF 2007 RESULTS (AUDITED) May 23, 2008

TICKERS:
NYSE : TLK
LSE : TKIA
IDX : TLKM

DIVISIONS:
Regional Divisions:I, II, III, IV, V,VI and VII

ISSUED SHARES:
20,159,999,280 shares

SHAREHOLDERS COMPOSITION:
Govt. of Indonesia : 51.19%
Public : 47.60%
Treasury Stock : 1.21%
(As of Dec 31, 2008)

CONVERSION RATES (US$ 1.00):
2006 = Rp.9,020.0 (Dec 31,2007)
2007 = Rp.9,394.0 (Dec 31,2008)

NOTABLE FIGURES:

n		As of December 31, 2007, the total subscribers TELKOM Group reached nearly 63 million (fixed line including Flexi and cellular)

n		On November 6, 2007, the Company distributed an interim dividend for the financial year 2007 in the amount of Rp. 48.45 per share to all of its registered shareholders

n		Telkomsel offers new value added service,“Telkomsel Cash (T-Cash)” to perform micro payment transactions

n		Until end of 2007, we repurchased 244,740,500 Series B shares with a total amount Rp.2.18 Trillion representing 1.21% of total outstanding shares

n		Starting from Q4/07, TELKOM presents interconnection revenue on a net basis

TELKOM FINANCIAL
INDICATORS — FY/07
(in Rp.Tn)

FINANCIAL HIGHLIGHTS (Consolidated):


	FY/06				FY/07				Growth(%)
Key Indicators	Net		Gross		Net		Gross		Net		Gross
Op. Revenues (Rp. bn)		51,294		54,406		59,440		62,495		15.9		14.9
Op. Expenses (Rp. bn)		29,701		32,813		32,967		36,022		11.0		9.8
Op. Income (Rp. bn)		21,593		21,593		26,473		26,473		22.6		22.6
EBITDA (Rp. bn)		31,716		31,716		37,067		37,067		16.9		16.9
Net Inc. (Rp. bn)		11,006		11,006		12,857		12,857		16.8		16.8
Net Inc./Share(Rp)		547.15		547.15		644.08		644.08		17.7		17.7
Net Inc./ADS(Rp)		21,886.0		21,886.0		25,763.2		25,763.2		17.7		17.7
EBITDA Margin (%)		61.8		58.3		62.4		59.3		0.6		1.0

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

OPERATIONAL HIGHLIGHTS:


Description	FY/06 (’000)		FY/07 (’000)		Growth (%)
TELKOM
LIS Wireline		8,709		8,685		-0.3
LIS Wireless (Flexi)		4,176		6,363		52.4
Total		12,885		15,048		16.8

TELKOMSEL
Customer:
kartuHALO		1,662		1,913		15.1
simPATI		21,378		23,986		12.2
KartuAs		12,557		21,991		75.1
Total		35,597		47,890		34.5
(%)


*		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 & Corporate Secretary
PT. TELEKOMUNIKASI INDONESIA Tbk
Grha Citra Caraka, 5^th floor
Jl. Gatot Subroto No.52, Jakarta


Phone	:	62 21 5215109
Fax	:	62 21 5220500
Email	:	investor@telkom.co.id
Website	:	www.telkom-indonesia.com

The Year End of 2007 Results (Audited)

PT. TELEKOMUNIKASI INDONESIA, Tbk.
ANNOUNCEMENT FOR
THE YEAR END OF 2007 RESULTS (Audited)

Jakarta, May 23, 2008 — PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), has announced its operational and consolidated financial statements results for the year end of 2007. All financial figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP) and expressed an unqualified opinion from the Auditor.

FINANCIAL RESULTS

Profit and Loss Statement

This report compares the Company’s financial results as of December 31, 2007 with the same period last year.

Operating Revenues

Operating Revenues which is presented in net basis for FY/2006 and FY/2007, respectively, increased by Rp. 8,146.0 billion, or 15.9%, from Rp.51,294.0 billion in 2006 to Rp. 59,440.0 billion in 2007 compared to the same period last year summarized as follows:

Revenues Composition
FY2007:

The composition of Data & Internet revenues increased by 7.0% from the composition revenues last year

§		Data and Internet revenues increased by Rp. 5,618.9 billion, or 62.0% compared to the same period last year, mainly due to the growth from SMS production of Telkom (Flexi) and Telkomsel which grew by 65.5% to 1.97 billion and 74.9% to 49.5 billion, respectively.

§		Cellular revenues increased by Rp. 2,015.4 billion, or 9.8% compared to the same period last year, mainly due to the growth in Telkomsel’s Minutes of Usage (MOU) by 38.5% to 25.2 billion minutes, as a result from the subscribers growth by 34.5% to 47.9 million.

§		Interconnection Revenues. On a net basis, the Interconnection revenues increased by Rp.969.8 billion, or 11.2%. Net interconnection revenue comprised interconnection revenues from our fixed line network and interconnection revenues from Telkomsel’s mobile cellular network. The growth in interconnection revenue mainly due to the growth of IDD traffic as a result from the growth of cellular subscribers in Indonesia.

The Year End of 2007 Results (Audited)

Flexi revenue contributed to TELKOM’s revenue in the amount of Rp.3,651.3 billion (gross revenue)

§		Fixed line Revenues increased by Rp. 22.2 billion, or 0.2% compared to the same period last year, mainly due to the growth in Flexi’s MoU (minutes of usage) by 62.8%.

		TELKOMFlexi revenues contributed to total TELKOM’s revenue in the amount of Rp.3,651.3 billion consisting of installation charges, monthly subscription charges, local & domestic long distance revenues which amounted to Rp. 1,412.4 billion, while interconnection (gross) amounted to Rp. 1,729.1 billion, and data and internet revenues, Rp.509.7 billion.

Since implementation of cost based interconnection in accordance with MoCI Regulation No.08/Per/M.KOMINFO/02/2006 in 2007, we presented interconnection revenue on a gross basis starting from Q1 to Q3 2007 by considering that such presentation provides a better and more useful information to users of financial statement. The gross presentation of interconnection revenue in accordance with IFRS and Accounting Standard. However, until the date of 2007 audited financial statement, the Accounting Standard that requires net presentation of interconnection revenue is still effective, we decided to follow the Indonesian Standard.

To make same basis comparison with cost based interconnection scheme in Q1 to Q3, we represent the following proforma table which is presented on a net basis and gross basis:


	Net basis									Gross basis
Account	Q3			Q4			Growth			Q3			Q4			Growth
Operating Revenues		15,141			15,793			4.3	%		15,499			17,207			11.0	%
Operating Expense		8,285			9,217			11.2	%		8,643			10,631			23.0	%
Operating Income		6,856			6,576			-4.1	%		6,856			6,576			-4.1	%
EBITDA		9,515			9,361			-1.6	%		9,515			9,361			-1.6	%
EBITDA Margin		62.8	%		59.3	%		-3.6	%		61.4	%		54.4	%		-7.0	%

However, QoQ EBITDA Margin decreased by 3.6% and 7.0% on net basis and gross basis, respectively.

Operating Expenses

Operating Expenses increased by Rp. 3,266.5 billion, or 11.0%, summarized as follows:

Operations, maintenance and telecommunications services expenses increased by Rp.2,094.9 billion, or 27.9%, mainly resulting from the network infrastructure growth (total BTS grew by 29.5%, consists of Telkomsel BTS’s from 16,057 to 20,858 units and Flexi’s BTS from

The Year End of 2007 Results (Audited)

1,531 to 1,911 unit). The increasing of these network infrastructure affected transmission costs, frequency fees and power supply costs.

Expenses Composition
FY2007:

The composition of Personnel Expense decreased by 3% from the expense composition last year

§		Marketing expenses increased by Rp.527.6 billion, or 42.5%, primarily due to increase in advertising and promotion program and also increase in customer education program related to increasing competition in our business recently.

§		Depreciation Expenses increased by Rp. 366.7 billion, or 4.0%, mainly due to increasing in depreciation expense of Telkomsel by 29.3% resulting from BTS deployment of 4,801 units in 2007, increase in the capacity of its transmitting and receiving stations and switching and intelligence network equipment, and increase in capital expenditures for network infrastructures.

§		General & Administrative Expenses increased by Rp.296.2 billion, or 9.1%, mainly due to the increase in amortization of goodwill and intangible assets, due to the higher amortization amounts of the rights to operate the KSO operations as a result of the KSO VII acquisition and the up-front fees for the Telkomsel’s 3G license. The increase was also from collection fees, generally in line with the growth in our postpaid cellular subscribers base, which resulted in higher collection charges paid to third party collection agents.

§		Personnel expenses decreased by Rp.18.9 billion, or 0.2%, The decrease in personnel expenses were primarily due to there was no early retirement program in 2007 and decrease in long service award cost since this program has been discontinued in 2007.

As a result of the foregoing, Operating Income increased by Rp.4,879.5 billion, or 22.6%, from Rp.21,593.2 billion in 2006 to Rp.26,472.7 billion in 2007 and EBITDA of Rp. 37,067.2 billion or increased by 16.9%.

Capital Expenditure

During the year of 2007, total capex for TELKOM Group amounted to Rp.17,580 billion, primarily allocated to TELKOM for Rp.3,508.1 billion and Telkomsel for Rp.13,922.0 billion.

Consolidated Debt

As of December 31, 2007, the breakdown of debt portfolio (short-term and long-term) in foreign currencies and Rupiah equivalents were as

The Year End of 2007 Results (Audited)

follows:


	Original ccy (in million)				Rp (in billion)				Portion (%)
Currencies	FY06		FY07		FY06		FY07		FY06			FY07
IDR / Rupiah		8,260,000		9,876,300		8,260		9,876		52.9	%		61.7	%
U.S. Dollar		667		524		6,003		4,923		38.4	%		30.8	%
Japanese Yen		14,385		13,242		1,089		1,100		7.0	%		6.9	%
EURO		22		7		261		101		1.7	%		0.6	%
Total						15,613.0		15,999.7		100.0	%		100.0	%

TELKOM as a parent company hedged its foreign currency exposures through time deposit placements, mainly in US Dollars that covered 40.4% of foreign debts from January 1, 2008 to December 31, 2008.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of December 31, 2007, TELKOM recorded 15.1 million fixed lines in service, consisting of 8.7 million fixed wirelines and 6.4 million fixed wireless.

Fixed-Wireless CDMA Services

In this period, TELKOMFlexi was available in 238 cities with 1,911 BTS. As of December 31, 2007, TELKOMFlexi has market share more than 57.9% with 6.4 million subscribers. During 2007, in tight competition, TELKOMFlexi can maintain ARPU (blended) amount Rp.53.000 (decreased by 1.9% compared to the 2006 figures. Meanwhile, the total wireless production grew by 62.8% from 5.6 billion minutes to 9.1 billion minutes. As of December 31, 2007, net adds for Flexi reached 2.2 million or grew by 1,818.6%, compared to 2006 figures.

In 2007, we completed the network migration of FWA CDMA TELKOMFlexi from 1900 MHz to 800 MHz in Regional Division II (Jakarta) and Regional Division III (West Java and Banten).

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

TELKOM International Call (TIC-007 & TG 017)

As of December 31, 2007, Telkom International Call generated Rp 1,494.1 billion in revenues (gross basis), from both TIC-007 & TG 017 outgoing call revenues, outgoing and incoming interconnection revenues, and TELKOM also recorded incoming and outgoing international traffic of 1,117.8 million minutes and 142.8 million minutes, respectively.

The Year End of 2007 Results (Audited)

Telkomsel offers new value added services such as “Telkomsel Cash (T-Cash)

Cellular Services

Telkomsel has more than 50 % subscriber’s market share with a total of 47.9 million subscribers, as of December 31, 2007.

During the year of 2007, Telkomsel added 4,801 new BTS (including 998 3G-BTS), and 50.5 million subscribers capacity. As of December 31, 2007, total Telkomsel’s BTS grew by 29.9% to 20,858 units.

Since the Company aunched its 3G network in 2007, Telkomsel’s 3 G services were available in 81 cities with over 3.3 million registered subscribers. Telkomsel continues to expand its 3G network with various features including video calls, mobile television, mobile download and high-speed data access. Telkomsel also offers cellular users value added services such as“Telkomsel Cash (T-Cash)” — mobile wallet service, with this service, user can perform micro payment transactions such as purchase of merchandise, prepaid card top-up, bus/train ticket, etc.

Data and Internet Services

Dial up Internet (TELKOMNet Instan)

In 2007, an average of 662K telephone subscribers accessed to TELKOMNet Instan and premium prepaid dial-up internet services per month. During the year of 2007, subscribers utilized a total of 3,663.8 million minutes of TELKOMNet Instan.

Broadband Services

As of December 31, 2007, there were 241K subscribers of broadband ADSL internet access (Speedy) or 158.4% growth from 93K subscribers compared to last year. The revenues from Speedy services for the year of 2007 has reached Rp.564 billion.

Human Resources

As of December 31, 2007, the total number of employees at TELKOM (as a single entity) and Telkomsel were 25,364 persons and 4,080 persons respectively.

Employee Productivity as measured by the total revenues per employee as of December 31, 2007 was Rp.2.3 billion or an increased by 26.4% compared to last year.

Recent Developments

On November 6, 2007 — Based on the Board of Directors Meeting, the Company approved and decided to distribute an interim dividend for the

The Year End of 2007 Results (Audited)

Table 1
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (AUDITED)
As of Dec 31, 2006 and 2007
(in million Rupiah)


	2006		2007

ASSETS

CURRENT ASSETS
Cash and cash equivalents		8,315,836		10,140,791
Temporary investments		84,492		159,504
Trade receivables
Related parties — net of allowance for doubtful accounts of Rp.85,053 million in 2006 and Rp.69,521 million in 2007		520,689		449,085
Third parties — net of allowance for doubtful accounts of Rp.699,736 million in 2006 and Rp.1,030,935 million in 2007		3,196,588		2,912,403
Other receivables — net of allowance for doubtful accounts of Rp.1,685 million in 2006 and Rp.10,982 million in 2007		147,735		150,508
Inventories — net of allowance for obsolescence of Rp.48,098 million in 2006 and Rp.54,701 million in 2007		213,329		211,441
Prepaid expenses		1,073,329		1,407,410
Claim for tax refund		359,582		420,550
Prepaid taxes		2,390		47,683
Restricted time deposits		6,822		78,720

Total Current Assets		13,920,792		15,978,095

NON-CURRENT ASSETS
Long-term investments — net		89,197		113,990
Property, plant and equipment — net of accumulated depreciation of Rp.45,043,380 million in 2006 and Rp.54,434,809 million in 2007		54,267,060		60,463,892
Property, plant and equipment under revenue-sharing arrangements — net of accumulated depreciation of Rp.493,381 million in 2006 and Rp.502,563 million in 2007		965,632		705,091
Prepaid pension benefit cost		103		398
Advances and other non-current assets		1,454,283		1,408,764
Goodwill and other intangible assets — net of accumulated amortization of Rp.3,708,590 million in 2006 and Rp.4,758,067 million in 2007		4,436,605		3,387,128
Escrow accounts		2,073		1,402

Total Non-current Assets		61,214,953		66,080,665

TOTAL ASSETS		75,135,745		82,058,760

The Year End of 2007 Results (Audited)

Table 1 ( continued)
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (AUDITED)
As of Dec 30, 2006 and 2007
(in million Rupiah)


	2006		2007
LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Trade payables
Related parties		1,116,496		942,912
Third parties		5,801,457		5,962,022
Other payables		10,599		16,679
Taxes payable		2,569,002		3,052,149
Accrued expenses		3,475,698		2,741,076
Unearned income		2,037,772		2,413,952
Advances from customers and suppliers		161,262		141,361
Short-term bank loans		687,990		573,669
Current maturities of long-term liabilities		4,675,409		4,830,809

Total Current Liabilities		20,535,685		20,674,629

NON-CURRENT LIABILITIES
Deferred tax liabilities — net		2,665,397		3,034,100
Unearned income on revenue-sharing arrangements		817,174		503,385
Accrued long service award		465,008		74,520
Accrued post-retirement health care benefits		2,945,728		2,768,923
Accrued pension and other post-retirement benefits costs		1,201,939		1,354,543
Long-term liabilities — net of current maturities
Obligations under capital leases		217,108		201,994
Two-step loans — related party		4,006,935		3,727,884
Bank loans		2,487,913		4,165,168
Deferred consideration for business combinations		3,537,082		2,500,273
Total Non-current Liabilities		18,344,284		18,330,790

MINORITY INTEREST		8,187,087		9,304,762

STOCKHOLDERS’ EQUITY
Capital stock — Rp.250 par value per Series A
Dwiwarna share and Series B share
Authorized — 1 Series A Dwiwarna share and 79,999,999,999 Series B shares
Issued and fully paid — 1 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 in 2006 and 244,740,500 shares in 2007		952,211		2,176,611
Difference in value of restructuring transactions between entities under common control		180,000		270,000
Difference due to change of equity in associated companies		385,595		385,595
Unrealized holding gain available-for-sale securities		8,865		11,237
Translation adjustment		227,669		230,017
Retained earnings
Appropriated		1,803,397		6,700,879
Unappropriated		20,302,041		22,214,129
Total Stockholders’ Equity		28,068,689		33,748,579

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		75,135,745		82,058,760

The Year End of 2007 Results (Audited)

Table 2
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (AUDITED)
FOR THE YEAR ENDED DEC 31, 2006 AND 2007
(in million Rupiah)


	2006			2007
OPERATING REVENUES
Telephone
Fixed lines		10,979,033			11,001,211
Cellular		20,622,647			22,638,065
Interconnection
Revenues		11,793,805			12,705,911
Expenses		(3,112,344	)		(3,054,604	)
Net		8,681,461			9,651,307
Data and Internet		9,065,187			14,684,135
Joint operation schemes		489,414			—
Network		718,738			707,374
Revenue-sharing arrangements		415,477			427,978
Other telecommunications services		322,051			329,941

Total Operating Revenues		51,294,008			59,440,011

OPERATING EXPENSES
Depreciation		9,178,343			9,545,004
Personnel		8,513,765			8,494,890
Operations, maintenance and telecommunication services		7,495,728			9,590,596
General and administrative		3,271,427			3,567,666
Marketing		1,241,504			1,769,147

Total Operating Expenses		29,700,767			32,967,303

OPERATING INCOME		21,593,241			26,472,708

OTHER INCOME (EXPENSES)
Interest income		654,984			518,663
Equity in net income (loss) of associated companies		(6,619	)		6,637
Interest expense		(1,286,354	)		(1,436,165	)
Loss (gain) on foreign exchange — net		836,328			(294,774	)
Others — net		202,025			328,584
Other (expenses) income — net		400,364			(877,055	)

INCOME BEFORE TAX		21,993,605			25,595,653

TAX (EXPENSE) BENEFIT
Current tax		(7,097,202	)		(7,233,874	)
Deferred tax		57,275			(693,949	)

		(7,039,927	)		(7,927,823	)

INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		14,953,678			17,667,830

MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES — net		(3,948,101	)		(4,810,812	)

NET INCOME		11,005,577			12,857,018

BASIC EARNINGS PER SHARE
Net income per share		547.15			644.08
Net income per ADS (40 Series B shares per ADS)		21,886.00			25,763.20

The Year End of 2007 Results (Audited)

Table 3
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (AUDITED)
FOR THE YEAR ENDED DEC 31, 2006 AND 2007
(in million Rupiah)


	2006			2007
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines		10,673,901			10,987,600
Cellular		20,842,406			22,720,191
Interconnection — net		8,655,917			9,621,688
Joint operation schemes		596,423			3,797
Data and internet		8,914,019			14,822,515
Other services		1,285,275			1,122,607
Total cash receipts from operating revenues		50,967,941			59,278,398
Cash payments for operating expenses		(16,465,320	)		(23,612,680	)
Cash refund to customers		(57,580	)		(18,876	)

Cash generated from operations		34,445,041			35,646,842

Interest received		642,959			514,524
Interest paid		(1,217,131	)		(1,470,328	)
Income tax paid		(7,175,681	)		(6,963,766	)

Net Cash Provided by Operating Activities		26,695,188			27,727,272

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of temporary investments and maturity of time deposits		46,081			11,804
Purchase of temporary investments and placements in time deposits		(98,896	)		(84,444	)
Proceeds from sale of property, plant and equipment		17,269			39,105
Proceeds from insurance claim		—			10,626
Acquisition of property, plant and equipment		(15,900,628	)		(15,056,802	)
Decrease (increase) in advances for the purchase of property, plant and equipment		(293,920	)		15,710
(Increase) decrease in advances and others		38,395			(61,590	)
Business combinations, net of cash (paid) acquired		143,648			—
Acquisition of intangible assets		(436,000	)		—
Proceeds from sale of long-term investments		22,561			—
Cash dividends received		382			510
Acquisition of long-term investments		—			(13,782	)

Net Cash Used in Investing Activities		(16,461,108	)		(15,138,863	)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid		(5,371,102	)		(6,047,431	)
Cash dividends paid to minority shareholders of subsidiaries		(2,067,696	)		(3,693,137	)
Increase in escrow accounts		(2,073	)		—
Proceeds from short-term borrowings		1,020,000			1,130,435
Repayments of short-term borrowings		(507,133	)		(1,233,333	)
Repayments of Medium-term Notes		(145,000	)		(465,000	)
Redemption of Telkomsel’s notes		—			—
Proceeds from long-term borrowings		2,532,313			5,119,000
Repayments of long-term borrowings		(1,674,516	)		(3,317,415	)
Payment for purchase of treasury stock		(952,211	)		(1,224,400	)
Repayments of promissory notes		(201,307	)		(199,365	)
Repayments of obligations under capital leases		(14,095	)		(26,392	)
Redemption of bonds		—			(1,000,000	)

Net Cash Used in Financing Activities		(7,382,820	)		(10,957,038	)

NET INCREASE IN CASH AND CASH EQUIVALENTS		2,851,260			1,631,371

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		89,892			193,584

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

CASH AND CASH EQUIVALENTS AT END OF YEAR		8,315,836			10,140,791

The Year End of 2007 Results (Audited)

Table 4
FINANCIAL RATIOS
As of Dec 31, 2006 and 2007


	2006		2007		Growth (%)

Contribution to total fixed lines revenue:
Local & Domestic Long Distance Usage (%)		64.9		63.8		(1.1	)
Monthly subscription charges (%)		31.8		33.6		1.8
Installation charges (%)		1.6		1.1		(0.5	)
Phone Card — net (%)		0.0		0.0		(0.0	)
Others (%)		1.7		1.4		(0.3	)
Contribution to total operating revenues:
Cellular (%)		40.2		38.1		(2.1	)
Fixed lines (%)		21.4		18.5		(2.9	)
Revenue under JOS (%)		1.0		—		(1.0	)
Interconnection (%)		16.9		16.2		(0.7	)
Network (%)		1.4		1.2		(0.2	)
Data and internet (%)		17.7		24.7		7.0
Revenue under RSA (%)		0.8		0.7		(0.1	)
Other telecommunications services (%)		0.6		0.6		0.0
ARPU Fixed wireline ((’000)		190		186		(1.8	)
EBITDA (Rp billion)		31,716.0		37,067.2		16.9
EBITDA margin (%)		61.8		62.4		0.6
Operating margin (%)		42.1		44.5		2.4
Profit Margin (%)		21.5		21.6		0.1
Current ratio (%)		67.8		77.3		9.5
Return on Assets (%)		14.6		15.7		1.1
Return on Equity (%)		39.2		38.1		(1.1	)
Total Liabilities to Equity (%)		138.5		115.6		(22.9	)
Gearing (Net Debt to Equity) (%)		24.8		16.2		(8.6	)
Debt to Equity (%)		54.8		46.7		(8.1	)
Debt to EBITDA (%)		48.5		42.5		(5.9	)
Debt Service Ratio (Times)		4.8		5.4		0.6
EBITDA to Interest Expense (times)		24.7		25.8		1.1
EBITDA to Net Debt (%)		454.9		677.8		222.9

The Year End of 2007 Results (Audited)

Table 5
FIXED TELEPHONE LINES
As of Dec 31, 2006 and 2007


	2006		2007
	Lines (’000)				Growth (%)
Exchange Capacity TELKOM Division
Wireline		9,391		10,732		14.3
Wireless		6,292		12,832		103.9
Total Exchange Cap. TELKOM (Wireline & Wireless)		15,683		23,564		50.3
Exchange Capacity KSO Division
Wireline		1,049		—		—
Wireless (MSC)		364		—		—
Total Exchange Cap. KSO (Wireline & Wireless)		1,412		—		—
Exchange Capacity TELKOM & KSO Division
Wireline		10,440		10,732		2.8
Wireless		6,656		12,832		92.8
Total Exchange Cap. TELKOM & KSO (Wireline & Wireless)		17,096		23,564		37.8
Installed Lines TELKOM Division
Wireline		8,608		9,705		12.7
Wireless		7,160		9,384		31.1
Total Installed Lines TELKOM (Wireline & Wireless)		15,768		19,089		21.1
Installed Lines KSO Division
Wireline		1,027		—		—
Wireless		538		—		—
Total Installed Lines KSO (Wireline & Wireless)		1,565		—		—
Installed Lines TELKOM & KSO Division
Wireline		9,635		9,705		0.7
Wireless		7,698		9,384		21.9
Total Installed Lines TELKOM & KSO (Wireline & Wireless)		17,333		19,089		10.1
Subscribers TELKOM Division
Wireline		7,455		8,324		11.7
Wireless		3,722		6,335		70.2
Total Subscribers TELKOM Division (Wireline & Wireless)		11,178		14,660		31.2
Subscribers KSO Division						—
Wireline		873		—		—
Wireless		441		—		—
Total Subscribers KSO Division (Wireline & Wireless)		1,314		—
Subscribers TELKOM & KSO Division
Wireline		8,328		8,324		(0.0	)
Wireless		4,163		6,335		52.2
Total Subs —TELKOM & KSO Division (Wireline & Wireless)		12,491		14,660		17.4
Public Phone TELKOM Division
Wireline		354		361		1.9
Wireless		13		27		117.9
Total Public Phone TELKOM Division (Wireline & Wireless)		367		388		5.9
Public Phone KSO Division
Wireline		27		—		—
Wireless		—		—		—
Total Public Phone KSO Division (Wireline & Wireless)		27		—		—
Public Phone TELKOM & KSO Division
Wireline		381		361		(5.3	)
Wireless		13		27		117.9
Total Public Phone TELKOM & KSO Division (Wireline & Wireless)		394		388		(1.4	)
Lis Fixed TELKOM Division
Wireline		7,809		8,685		11.2
Wireless		3,735		6,363		70.4
Total Lines In Services TELKOM (Wireline & Wireless)		11,544		15,048		30.3
Lis Fixed KSO Division
Wireline		900		—		—
Wireless		441		—		—
Total Lines In Services KSO (Wireline & Wireless)		1,341		—		—
Lis Fixed TELKOM & KSO Division
Wireline		8,709		8,685		(0.3	)
Wireless		4,176		6,363		52.4
Total LIS TELKOM & KSO Division (Wireline & Wireless)		12,885		15,048		16.8

The Year End of 2007 Results (Audited)

Table 6
PRODUCTION
As of Dec 31, 2006 and 2007


	UNIT	2006		2007		Growth (%)
Production :
Subscriber —TELKOM Division
Wireline	Pulses (mn)		55,279		75,451		36.5
Wireless (exclude data & sms)	second (mn)		294,008		545,020		85.4

Subscriber —KSO Division
Wireline	Pulses (mn)		8,733		—
Wireless (exclude data & sms)	second (mn)		36,706		—

Subscriber TELKOM & KSO Division
Wireline	Pulses (mn)		64,012		75,451		17.9
Wireless (exclude data & sms)	second (mn)		330,714		545,020		64.8

Public Phone —TELKOM Division
Wireline	Pulses (mn)		7,950		6,696		(15.8	)
Wireless (exclude data & sms)	second (mn)		5,943		3,630		(38.9	)

Public Phone —KSO Division
Wireline	Pulses (mn)		1,238		—
Wireless (exclude data & sms)	second (mn)		281		—

Public Phone —TELKOM & KSO Division
Wireline	Pulses (mn)		9,188		6,696		(27.1	)
Wireless (exclude data & sms)	second (mn)		6,223		3,630		(41.7	)

Lines in Services —Production
Wireline	Pulses (mn)		73,200		82,147		12.2
Wireless (exclude data & sms)	second (mn)		336,937		548,651		62.8

Productivity Per Average Subscriber Line
Wireline	Pulses/Line		7,707		9,062		17.6
Wireless	second/Line		80,530		103,826		28.9

Productivity Per Average LIS
Wireline	Pulses/Line		8,416		9,445		12.2
Wireless	second/Line		81,804		104,121		27.3

The Year End of 2007 Results (Audited)

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


	UNIT	2006			2007		Gowth (%)
Customer base
Classy/Postpaid	SSF (’000)		794			828		4.2
Trendy/Prepaid	SSF (’000)		3,381			5,535		63.7
Total/Blended	SSF (’000)		4,176			6,363		52.4

Net additional
Classy/Postpaid	SSF (’000)		(27	)		34		225.2
Trendy/Prepaid	SSF (’000)		141			2,153		1,428.1
Total/Blended	SSF (’000)		114			2,187		1,818.6

Sales
Classy/Postpaid	SSF (’000)		261			273		4.4
Trendy/Prepaid	SSF (’000)		3,175			5,026		58.3
Total/Blended	SSF (’000)		3,436			5,299		54.2

ARPU
Classy/Postpaid	Rp (000)		135			114		(15.6	)
Trendy/Prepaid	Rp (000)		35			45		28.6
Total/Blended	Rp (000)		54			53		(1.9	)

MOU (Minute of use)	mn minutes		5,616			9,144		62.8
SMS	mn messages		1,194			1,976		65.5

NETWORK
BTS	BTS		1,531			1,911		24.8
Coverage	Cities		236			238		0.8

The Year End of 2007 Results (Audited)

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


	2006		2007
ASSETS
CURRENT ASSETS
Cash and cash equivalents		2,084		2,776
Acct./Unbilled receivables		794		856
Prepayments		643		938
Others		450		489
Total Current Assets		3,971		5,059

NON-CURRENT ASSETS
Long-term investment		9		20
Property, plant & equipment — net		31,706		38,251
Advances for PPE		339		98
Equipment not used in operations — net		199		56
Intangible assets — net		425		378
Others		652		815
Total Non-current Assets		33,330		39,618
TOTAL ASSETS		37,301		44,677

CURRENT LIABILITIES
Short-term loans		667		533
Accounts payable & Accr. liabilities		5,568		5,356
Taxes payable		1,266		1,878
Unearned revenue		1,774		2,004
Curr. maturities of med/long-term loans		1,313		2,632
Total Current Liabilities		10,588		12,403

NON-CURRENT LIABILITIES
Med/long-term loans — net of current matur		1,674		3,880
Deferred tax liabilities		1,841		2,042
Others		125		160
Total Non-current Liabilities		3,640		6,082

EQUITY
Capital stock — Rp 1,000,000 par value
Authorized — 650,000 shares
Issued and fully paid — 182,570 shares		183		183
Additional paid-in capital		1,505		1,505
Retained earnings		21,385		24,504
Total Equity		23,073		26,192

TOTAL LIAB. & STOCKHOLDERS’ EQUITY		37,301		44,677

The Year End of 2007 Results (Audited)

Table 9
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
INCOME STATEMENT
For the Year Ended Dec 31, 2006 and 2007
(In billion rupiah)


	2006			2007
OPERATING REVENUES
Post-paid		4,886			5,385
Prepaid		25,548			34,749
International roaming		820			951
Interconnection		3,644			3,295
Gross Operating Revenues		34,898			44,380
Less: — Discounts		2,432			4,708
— Intercon./Intl. roaming/Data provider charges		3,321			3,002
Net Operating Revenues		29,145			36,670

OPERATING EXPENSES
Personnel		1,174			1,396
Operation & maintenance		4,367			6,236
General & administrative		714			761
Marketing		705			923
Other operating expenses		1,448			1,750
Depreciation		4,428			5,725
Total Operating Expenses		12,836			16,791

EBIT (EARNINGS BEFORE INTEREST & TAXES)		16,309			19,879
OTHER INCOME/(EXPENSES)
Interest income & financing charges		(85	)		(330	)
Foreign exchange gain/(loss)		121			(57	)
Others — net		(179	)		(92	)
Other income/(expenses) — net		(143	)		(479	)

INCOME BEFORE TAX		16,166			19,400
INCOME TAX EXPENSE		4,984			5,776
NET INCOME		11,182			13,624

EBITDA		20,737			25,604
EBITDA Margin — over gross oper. revenues		59	%		58	%
EBITDA Margin — over net oper. revenues		71	%		70	%

ROA		35	%		33	%
ROE		55	%		55	%

The Year End of 2007 Results (Audited)

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


	Unit	2006			2007			Growth (%)
CUSTOMER
Net Additions
kartuHALO	Subs (000)		191			251			31.4
simPATI	Subs (000)		5,374			2,608			-51.5
Kartu As	Subs (000)		5,763			9,434			63.7
Total	Subs (000)		11,328			12,293			8.5
Customer base
kartuHALO	Subs (000)		1,662			1,913			15.1
simPATI	Subs (000)		21,378			23,986			12.2
Kartu As	Subs (000)		12,557			21,991			75.1
Total	Subs (000)		35,597			47,890			34.5

MOU (excluding free & incoming mins)	bn minutes		18.2			25.2			38.5

ARPU
Total (12 months average)
kartuHALO	Rp.’000 per mo.		274			264			-3.6
simPATI	Rp.’000 per mo.		83			84			1.2
Kartu As	Rp.’000 per mo.		54			57			5.6
Blended	Rp.’000 per mo.		84			80			-4.8
Non-voice/Data (12 months average)
kartuHALO	Rp.’000 per mo.		47			49			4.3
simPATI	Rp.’000 per mo.		24			25			4.2
Kartu As	Rp.’000 per mo.		18			23			27.8
Blended	Rp.’000 per mo.		23			25			8.7

NETWORK DATA
Network capacity
Base stations installed (GSM/DCS/3G)	Unit		16,057			20,858			29.9
Overall capacity all network elements	Subs. mln.		38.8			50.5			30.2
Quality of service
Call success rate	%		94.4	%		94.2	%		-0.2
Call completion rate	%		99.4	%		99.2	%		-0.2

EMPLOYEE DATA
Total employees	person		3,797			4,080			7.5
Efficiency ratio	Subs/employee		9,375			11,738			25.2

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