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 09

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- ]

Enclosure: 2007 Annual Report of Perusahaan Perseroan (Persero) PT TELEKOMUNIKASI INDONESIA

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 13, 2009	By	/s/ Heri Supriadi
	(Signature)

		Heri Supriadi
		VP Investor Relations/ Corporate Secretary


THE YEAR END OF 2008 RESULTS (AUDITED) May 13,2009

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 : 51.2%
Public : 46.4%
Treasury Stock : 2.4%
(As of Dec 31, 2008)

CONVERSION RATES (US$ 1.00):
2007 = Rp.9,394.0 (Dec 31,2007)
2008 = Rp.10,900.0 (Dec 31,2008)

NOTABLE FIGURES:

n		As of December 31, 2008, Net additional subscribers of Speedy, Flexi and Cellular have grown significantly by 167.6%, 190.9% and 41.6%, respectively

n		On YoY basis, Total Operating Revenues rose by 2.1% to Rp.60.7 Tn

n		Total Expenses increased by 16.4% and EBITDA decreased by 6.6%, due to:

		ü		Early Retirement Program (“ERP”) with an expense of Rp.788 billion;

		ü		An increase in radio frequency usage charges of Rp.1.3 trillion. following the growth in Telkomsel’s BTS

n		Net Income decreased by 17.4%, mainly due to forex losses of Rp.1.6 trillion

n		On YoY basis, our New wave revenue grew by 42.9%, and its contribution to total revenue increased by 2.6% in 2008.

FIXED LINE LIS vs CELLULAR SUBSCRIBERS
FY/08 (in million)

OPERATIONAL HIGHLIGHTS:

FY/07

FY/08

Descriptions

(‘000)

Growth (%)

Fixed Line:

LIS Wireline

8,685

8,630

-0.6

LIS Wireless (Flexi):

6,363

12,725

100.0

— Post paid

828

731

-11.7

— Prepaid

5,535

11,994

116.7

Total Fixed Line

15,048

21,355

41.9

Cellular:

— Postpaid

1,913

1,940

1.4

— Prepaid

45,977

63,360

37.8

Total Cellular

47,890

65,300

36.4

ADSL (Speedy)

241

645*

)

167.6

Exclude for education and trial= 205K

TELKOM FINANCIAL
INDICATORS — FY/08 (Rp.Trillion)

FINANCIAL HIGHLIGHTS (Consolidated):


Key Indicators	FY/07		FY/08		Growth (%)
Op. Revenues (Rp. bn)		59,440		60,690		2.1
Op. Expenses (Rp. bn)		32,967		38,382		16.4
Op. Income (Rp. bn)		26,473		22,307		-15.7
EBITDA (Rp. bn)		37,067		34,621		-6.6
Net Inc. (Rp. bn)		12,857		10,619		-17.4
Net Inc./Share(Rp)		644.08		537.73		-16.5
Net Inc./ADS(Rp)		25,763.2		21.509.2		-16.5
EBITDA Margin (%)		62.3		57.0		-5.3

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 2008 Results (Audited)

ANNOUNCEMENT FOR THE YEAR END OF 2008 RESULTS (Audited)

Jakarta, May 13, 2009 — PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), has announced its operational and consolidated financial statements results for the year end of 2008. 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.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of December 31, 2008, TELKOM recorded 21.4 million fixed lines in service, consisting of 8.6 million fixed wirelines and 12.7 million fixed wireless.

Fixed-Wireless CDMA Services

In this period, TELKOMFlexi was available in 353 cities with 4,054 BTS. As of December 31, 2008, TELKOMFlexi has market share more than 59% with 12.7 million subscribers. During 2008, in tight competition, TELKOMFlexi can maintain ARPU (blended) amount Rp.38K (decreased by 28.3% compared to the 2007 figures. Meanwhile, the total wireless production grew by 45.7% from 9,327 billion minutes to 13,593 billion minutes. As of December 31, 2008, net adds for Flexi reached 6.4 million or grew by 191%, compared to 2007 figures.

For detail information of TELKOMFlexi performance as of December 31, 2008, please see attachment on Table 7.

Cellular net additional subscribers for 2008 reached 17.4 million

Cellular Services

As of December 31, 2008, Telkomsel has around 47 % subscribers market share with a total of 65.3 million subscribers.

During the year of 2008, Telkomsel added 6,014 new BTS (including 1,278 3G-BTS), and 67.3 million subscribers capacity. As of December 31, 2008, total Telkomsel’s BTS grew by 28.8% to 26,872 units.

Telkomsel provides GSM cellular services in Indonesia through its own network and internationally through networks operated by 329 international roaming partners in 176 countries as of the end of 2008. At the of year 2008, Telkomsel had the largest network of any of the cellular operators in Indonesia, providing coverage to more than 95% of Indonesia’s population, including all counties in Indonesia and all sub-counties in Java, Bali, Nusa Tenggara and Sumatera.

The Year End of 2008 Results (Audited)

Telkomsel was the first operator in South East Asia that launched BlackBerry^® prepaid service

In May 2008, Telkomsel was the first operator in South East Asia that launched BlackBerry^® prepaid service. Activation via SMS was launched at the same time, marking a worldwide first. By the end of 2008, BlackBerry^® subscription had reached 35,000. In the same month, Telkomsel offered free modem unlimited package & unlimited package for kartuHALO subscribers who use TelkomselFlash service.

Broadband Services

As of December 31, 2008, there were 645K subscribers (exclude 205K for education and trial) of broadband ADSL internet access (Speedy) or 167.6 % growth from 241K subscribers compared to last year. The revenues from Speedy services for the year of 2008 has reached Rp.1,438.7 billion.

FINANCIAL RESULTS

In this report we compare the Company’s financial results as of December 31, 2008 with the same period last year, based on financial statements submitted to the capital market authority (Bapepam-LK).

Balance Sheet

For this year, TELKOM’s Total Assets increased 11.2% from Rp.82,058.8 billion to Rp.91,256.2 billion.

Current Assets, decreased by 8.5% to Rp.14,622.3 billion, mainly due to lower cash balance as result from increasing in cash payments for operating expenses during 2008.

Non Current Assets increased by 16.0% to Rp.76,933.9 billion due to increasing in our fixed assets more than Rp.10 trillion as a result from capital expenditures for network infrastructures.

Total Liabilities increased by 21.2% to Rp.47,258.4 billion and Total Equities increased by 1.7% to Rp.31,314.1 billion.

Current Liabilities increased by 30.6% to Rp.26,998.2 billion due to increasing in trade payables and current maturities of long-term maturities.

Non-current Liabilities increased by 10.5% to Rp.20,260.2 billion due to increasing in bank loans.

The Year End of 2008 Results (Audited)

Profit and Loss Statement

Operating Revenues

Operating Revenues which was presented in net basis for FY/2007 and FY/2008, respectively, increased by Rp. 1,249.8 billion, or 2.1%, from Rp.59,440.0 billion in 2007 to Rp. 60,689.8 billion in 2008. This increase was lower than the same period last year, mainly attributed to an aggressive price war in cellular industry, regulatory change in interconnection since April, 2008, and customer life style.

The contribution of the increased revenues in 2008 is summarized as follows:

Cellular revenues contribution to total revenues increased by 3.6 % from the last year contribution

Revenues Contribution
FY/08:

Cellular revenues increased by Rp. 2,694.0 billion, or 11.9% compared to the same period last year, mainly due to the growth in Telkomsel’s Minutes of Usage (MOU) by 257.3% to 90.2 billion minutes, as a result from the subscribers growth by 36.4% to 65.3 million.

Network revenues increased by Rp.372.1 billion or 52.6%, mainly due to increase in satellite transponder and leased line services as a result from aggressive selling program for leased lines and satellite transponder services during 2008 and increasing in the number of telecommunication operators that use our network that has high capabilities.

Data, Internet and information technology services revenues increased by Rp.28.7 billion, or 0.2%.The increase in data and Internet revenues was primarily due to increasing in internet connectivity as a result of successful Speedy marketing program which boost Speedy subscribers.

Other telecommunications revenues increased by Rp.388.5 billion or 117.8%. Increasing in this revenues was primarily as a result of flexi terminal bundling program.

Meanwhile, Fixed line revenues decreased by Rp.1,271.0 or 11.6%. The decrease in this revenue was primarily due to the decrease in fixed wireline revenues. Decreasing in this revenue due to a 18.0% decrease in local and domestic long-distance revenues caused by changing in life style where customers preferred to make mobile to mobile (M2M) call. As a result of this style, pulse production for this year less than previous year.

Flexi revenue contributed to total revenues in the amount of Rp.3,697 billion

TELKOMFlexi revenues contributed to total TELKOM’s revenue in the amount of Rp.3,697 billion consisting of installation charges, monthly subscription charges, local & domestic long distance revenues which

The Year End of 2008 Results (Audited)

amounted to Rp.1,443 billion, while interconnection, SMS and internet revenues amounted to Rp.1,698 billion, Rp.506 and Rp.50 billion, respectively.

Interconnection Revenues. On a net basis, the Interconnection revenues decreased by Rp.860.5 billion, or 8.9%. Net interconnection revenue consists of interconnection revenues from our fixed line network and interconnection revenues from Telkomsel’s mobile cellular network and also from incoming international long distance of our IDD service (TIC-007). The decrease in this revenue was primarily due to changing in life style where customers seem to be likely using on-net call (mobile to mobile call) from the same operators which offered very low tariff.

Based on YoY comparison, Operating revenues showed positive results and increased by 1.9%

To make comparison with previous quarter, below we represent the proforma QoQ and YoY table, which are presented on net basis.


	QoQ									YoY
Account	Q3/08			Q4/08			Growth			Q4/07			Q4/08			Growth
Operating Rev.(Rp.bn)		14,422			16,090			11.6	%		15,793			16,090			1.9	%
Operating Expense (Rp. Bn)		9,711			10,961			12.9	%		9,216			10,961			18.9	%
Operating Income (Rp. Bn)		4,711			5,128			8.9	%		6,577			5,128			-22.0	%
EBITDA (Rp. Bn)		7,769			8,641			11.2	%		9,361			8,641			-7.7	%
Net Income (Rp. Bn)		2,622			1,699			-35.2	%		3,038			1,699			-44.1	%
EBITDA Margin (%)		53.9	%		53.7	%		-0.2	%		59.3	%		53.7	%		-5.6	%

Based on QoQ and YoY comparison, Operating revenues showed positive results and increased by 11.6% and 1.9%, respectively.

Our current strategy is to continue to strengthen the Legacy business and aggressively grow our New Wave business

Facing industry environment recently, we have stated new strategy. Our current strategy in tackling the current condition within the telecommunication industry is to continue to “strengthen the Legacy business and aggressively grow New Wave business”. Based on these strategies, we have segmented the revenue into Legacy and New Wave services, which is based on the group of services. This revenue segmentation may slightly differ from financial statement.

Legacy services are derived from the basic services of fixed wireline, fixed wireless and cellular (including SMS), network services, and other telecommunication services. New Wave services encompass data communication for enterprise, internet connectivity, broadband services, IT services and other value added data services.

For comparing our results that related with current strategy, we provide Table 5, containing financial results for Legacy & New wave businesses

The Year End of 2008 Results (Audited)

Our New Wave business has positive trend and grew by 42.9%

In mature Legacy business, for the full year 2008, Legacy revenues declined by 0.8%, mainly due to declined on interconnection tariff, pressure on cellular price war and lifestyle change on wireline usages. The new wave revenue grew by 42.9%, and its contribution to total revenue increased from 6.6% in 2007 to 9.2% in 2008. Therefore, the Legacy revenue decline was offset by an increase on the New Wave revenue.

Expenses Contribution
FY/08:

Operating Expenses

Operating Expenses increased by Rp. 5,415.0 billion, or 16.4%, summarized as follows:

§		Operations, maintenance and telecommunications services expenses increased by Rp.2,627.1 billion, or 27.4%, mainly resulting from the network infrastructure growth (total BTS grew by 35.8%, consists of Telkomsel BTS’s from 20,858 to 26,872 units and Flexi’s BTS from 1,911 to 4,054). The increasing of these network infrastructures, primarily affected operation and maintenance costs, radio frequency usage charges, and also terminal costs.

§		Depreciation Expenses increased by Rp.1,629.1 billion, or 17.3%, mainly due to increasing in depreciation expense of Telkomsel by 26.9% resulting from BTS deployment of 6,014 units in 2008, increase in the capacity of its transmitting and receiving stations, switching and intelligence network equipment, and increase in capital expenditures for network infrastructures.

Personnel Expense contribution to total expenses decreased by 2% from the last year contribution

§		Personnel expenses increased by Rp.621.7 billion or 7.3%. The main contributors were primarily due to the recognition of accrued liability related to TELKOM’s early retirement program in 2008 that covered 1,156 participants with total cost amounted to Rp.788 billion.

§		Marketing expenses increased by Rp.580.6 billion, or 32.8%, primarily due to increase in advertising and promotion program and also increase in customer education program related to increasing competition in our business recently.

§		Meanwhile, General & Administrative expenses decreased by Rp.43.5 billion, or 1.2%, mainly due to the decrease in provision for doubtful accounts and social contribution.

As a result of the foregoing, Operating Income decreased by Rp.4,165.2 billion, or 15.7%, from Rp.26,472.7 billion in 2007 to Rp.22,307.5 billion in 2008 and EBITDA of Rp. 34,621 billion, decreased by Rp.2,446.5 billion or 6.6% from Rp.37,067 billion last year.

The Year End of 2008 Results (Audited)

Based on Indonesian Tax Law, a listed company that the stocks owned by the public are 40% or more of the total fully paid and traded stocks in IDX, and such stocks are owned by at least 300 parties, each party owning less than 5% of the total paid-up stocks for six months in one year. These requirements had been fulfilled by TELKOM and the Company had entitled to obtain a reduction of corporate income tax by 5%.

Capital Expenditure

During the year of 2008, total Capex for TELKOM Group amounted to Rp.22,244.5 billion, primarily allocated to TELKOM for Rp.6,086.9 billion and Telkomsel for Rp.15,915.0 billion.

Debt portion in US$ has decreased by 10% to minimize forex loss on our bottom line

Consolidated Debt

As of December 31, 2008, the breakdown of debt portfolio (short-term and long-term) in foreign currencies and Rupiah equivalents were as follows:


	Original ccy (in million)				Rp (in billion)				Portion (%)
Currencies	FY07		FY08		FY07		FY08		FY07			FY08
IDR / Rupiah		9,647,137		14,072,258		9,647		14,072		61	%		71	%
U.S. Dollar		524		383		4,923		4,191		31	%		21	%
Japanese Yen		13,242		12,286		1,100		1,489		7	%		8	%
EURO		7		—		101		—		1	%		0	%
Total						15,771		19,752		100	%		100	%

For 2008, TELKOM applied new strategy related to hedge our cash position. Our new hedging strategy is provided by natural hedging through maintaining cash and cash equivalent amounted around 50% from approximately current maturity and average payment for capex/opex during 12 months ahead. With this new strategy, total hedging amounted US$ 90 million/month for one year ahead.

Human Resources

As of December 31, 2008, the total number of employees at TELKOM (as a single entity) and Telkomsel were 25,016 persons and 4,129 persons respectively.

In December 2008, TELKOM introduced an Early Retirement Program (“ERP”) for all of its employees. We offered this to make our business environment more effective and competitive. The program was offered on a voluntary basis to all employees meeting the eligibility criteria (e.g.,

The Year End of 2008 Results (Audited)

Table 1
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (AUDITED)
As of Dec 31, 2007 and 2008
(in million Rupiah)


	2007		2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents		10,140,791		6,889,945
Temporary investments		159,504		267,044
Trade receivables
Related parties — net of allowance for doubtful accounts of Rp.69,521 million in 2007 and Rp.81,196 million in 2008		449,085		544,974
Third parties — net of allowance for doubtful accounts of Rp.1,030,935 million in 2007 and Rp.1,122,709 million in 2008		2,912,403		2,964,795
Other receivables — net of allowance for doubtful accounts of Rp.10,982 million in 2007 and Rp.9,194 million in 2008		150,508		108,874
Inventories — net of allowance for obsolescence of Rp.54,701 million in 2007 and Rp.64,849 million in 2008		211,441		511,950
Prepaid expenses		1,407,410		1,875,773
Claims for tax refund		408,011		569,954
Prepaid taxes		60,222		805,594
Other current assets		78,720		83,407

Total Current Assets		15,978,095		14,622,310

NON-CURRENT ASSETS
Long-term investments — net		113,990		169,253
Property, plant and equipment — net of accumulated depreciation of Rp.54,005,834 million in 2007 and Rp.61,917,333 million in 2008		60,075,808		70,589,590
Property, plant and equipment under Revenue-Sharing Arrangements — net of accumulated depreciation of Rp.502,563 million in 2007 and Rp.249,707 million in 2008		705,091		476,654
Prepaid pension benefit cost		398		97
Advances and other non-current assets		1,408,764		2,159,688
Goodwill and other intangible assets — net of accumulated amortization of Rp.5,080,964 million in 2007 and Rp.6,324,335 million in 2008		3,775,212		3,187,808
Escrow accounts		1,402		50,850

Total Non-current Assets		66,080,665		76,633,940

TOTAL ASSETS		82,058,760		91,256,250

The Year End of 2008 Results (Audited)

Table 1 ( continued)
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (AUDITED)
As of Dec 31, 2007 and 2008
(in million Rupiah)


	2007			2008
LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Trade payables
Related parties		942,912			1,376,146
Third parties		5,962,022			10,793,238
Other payables		16,679			11,959
Taxes payables		3,052,149			739,688
Accrued expenses		2,741,076			4,093,632
Unearned income		2,413,952			2,742,123
Advances from customers and suppliers		141,361			141,132
Short-term bank loans		573,669			46,000
Current maturities of long-term liabilities		4,830,809			7,054,233

Total Current Liabilities		20,674,629			26,998,151

NON-CURRENT LIABILITIES
Deferred tax liabilities — net		3,034,100			2,904,873
Unearned income on Revenue-Sharing Arrangements		503,385			299,324
Accrued long service awards		74,520			102,633
Accrued post-retirement health care benefits		2,768,923			2,570,720
Accrued pension and other post-retirement benefits costs		1,354,543			1,141,798
Long-term liabilities — net of current maturities
Obligations under finance leases		201,994			337,780
Two-step loans — related party		3,727,884			3,949,431
Bank loans		4,165,168			7,495,144
Deferred consideration for business combinations		2,500,273			1,458,545
Total Non-current Liabilities		18,330,790			20,260,248

MINORITY INTEREST		9,304,762			9,683,780

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 — 244,740,500 shares in 2007 and 490,574,500 shares in 2008		(2,176,611	)		(4,264,073	)
Difference in value arising from restructuring transactions and other transactions between entities under common control		270,000			360,000
Difference due to change of equity in associated companies		385,595			385,595
Unrealized holding (loss) gain from available-for-sale securities		11,237			(19,066	)
Translation adjustment		230,017			238,319
Retained earnings
Appropriated		6,700,879			10,557,985
Unappropriated		22,214,129			20,941,978

Total Stockholders’ Equity		33,748,579			34,314,071

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		82,058,760			91,256,250

The Year End of 2008 Results (Audited)

Table 2
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (AUDITED)
FOR THE YEAR ENDED DEC 31, 2007 AND 2008
(in million Rupiah)


	2007			2008
OPERATING REVENUES
Telephone
Fixed lines		11,001,211			9,730,257
Cellular		22,638,065			25,332,028
Interconnection
Revenues		12,705,911			12,054,314
Expenses		(3,054,604	)		(3,263,560	)
Net		9,651,307			8,790,754

Data, internet and information technology services		14,684,135			14,712,758
Joint operation schemes		—			—
Network		707,374			1,079,475
Revenue-Sharing Arrangements		427,978			326,052
Other telecommunications services		329,941			718,460

Total Operating Revenues		59,440,011			60,689,784

OPERATING EXPENSES
Depreciation		9,440,476			11,069,575
Personnel		8,494,890			9,116,634
Operations, maintenance and telecommunication services		9,590,596			12,217,685
General and administrative		3,672,194			3,628,686
Marketing		1,769,147			2,349,729

Total Operating Expenses		32,967,303			38,382,309

OPERATING INCOME		26,472,708			22,307,475

OTHER (EXPENSES) INCOME
Interest income		518,663			671,834
Equity in net income (loss) of associated companies		6,637			20,471
Interest expense		(1,436,165	)		(1,581,818	)
(Loss) gain on foreign exchange — net		(294,774	)		(1,613,759	)
Others — net		328,584			508,605

Other (expenses) income — net		(877,055	)		(1,994,667	)

INCOME BEFORE TAX		25,595,653			20,312,808

TAX (EXPENSE) BENEFIT
Current		(7,233,874	)		(5,823,558	)
Deferred		(693,949	)		183,863
		(7,927,823	)		(5,639,695	)

INCOME BEFORE MINORITY INTEREST IN NET INCOME OF CONSOLIDATED SUBSIDIARIES		17,667,830			14,673,113

MINORITY INTEREST IN NET INCOME OF CONSOLIDATED SUBSIDIARIES — Net		(4,810,812	)		(4,053,643	)

NET INCOME		12,857,018			10,619,470

BASIC EARNINGS PER SHARE
Net income per share		644.08			537.73
Net income per ADS
(40 Series B shares per ADS)		25,763.20			21,509.20

The Year End of 2008 Results (Audited)

Table 3
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (AUDITED)
FOR THE YEAR ENDED DEC 31, 2007 AND 2008
(in million Rupiah)


	2007			2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines		10,987,600			9,166,209
Cellular		22,720,191			25,682,026
Interconnection — net		9,621,688			8,751,684
Data, internet and information technology services		14,822,515			14,828,097
Joint operation schemes		3,797			—
Other services		1,122,607			1,848,260
Total cash receipts from operating revenues		59,278,398			60,276,276
Cash payments for operating expenses		(23,612,680	)		(26,637,184	)
Cash refund to customers		(18,876	)		(1,168	)

Cash generated from operations		35,646,842			33,637,924

Interest received		514,524			659,450
Interest paid		(1,470,328	)		(1,429,781	)
Income tax paid		(6,963,766	)		(8,551,296	)

Net Cash Provided by Operating Activities		27,727,272			24,316,297

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of temporary investments and maturity of time deposits		11,804			28,676
Purchase of temporary investments and placements in time deposits		(84,444	)		(158,582	)
Proceeds from sale of property, plant and equipment		39,105			3,598
Proceeds from insurance claims		10,626			11,159
Acquisition of property, plant and equipment		(15,056,802	)		(15,863,840	)
Decrease (increase) in advances for purchases of property, plant and equipment		15,710			224,291
(Increase) decrease in advances and other assets		(61,590	)		(62,679	)
Business combinations, net of cash (paid) acquired		—			(287,403	)
Acquisition of intangible assets		—			(366,887	)
Cash dividends received		510			3,637
Acquisition of long-term investments		(13,782	)		(28,249	)
Increase in escrow accounts		—			(49,448	)

Net Cash Used in Investing Activities		(15,138,863	)		(16,545,727	)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid		(6,047,431	)		(8,033,511	)
Cash dividends paid to minority stockholders of subsidiaries		(3,693,137	)		(3,732,401	)
Proceeds from short-term borrowings		1,130,435			54,235
Repayments of short-term borrowings		(1,233,333	)		(582,195	)
Repayments of Medium-term Notes		(465,000	)		—
Proceeds from long-term borrowings		5,119,000			8,433,000
Repayments of long-term borrowings		(3,317,415	)		(4,865,401	)
Payment for purchase of treasury stock		(1,224,400	)		(2,087,462	)
Repayments of promissory notes		(199,365	)		(200,813	)
Repayments of obligations under finance leases		(26,392	)		(333,888	)
Redemption of bonds		(1,000,000	)		—

Net Cash Used in Financing Activities		(10,957,038	)		(11,348,436	)

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		1,631,371			(3,577,866	)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		193,584			327,020

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

CASH AND CASH EQUIVALENTS AT END OF YEAR		10,140,791			6,889,945

The Year End of 2008 Results (Audited)

Table 4
FINANCIAL RATIOS
As of Dec 31, 2007 and 2008


	2007		2008		Growth (%)

Contribution to total fixed lines revenue:
Local & SLJJ (%)		63.8		59.0		(4.9	)
Monthly subscription charges (%)		33.6		37.7		4.1
Installation charges (%)		1.1		1.3		0.2
Phone Card (%)		0.0		0.1		0.1
Others (%)		1.4		1.9		0.5
Contribution to total operating revenues:
Cellular (%)		38.1		41.7		3.7
Fixed lines (%)		18.5		16.0		(2.5	)
Interconnection (%)		16.2		14.5		(1.8	)
Data, internet and information technology service (%)		24.7		24.2		(0.5	)
Network (%)		1.2		1.8		0.6
Revenue-Sharing Arrangements (%)		0.7		0.5		(0.2	)
Other telecommunications services (%)		0.6		1.2		0.6
ARPU Fixed line (Rp.’000)		186.0		139.0		(25.3	)
EBITDA (Rp billion)		37,067		34,621		(6.6	)
EBITDA margin (%)		62.3		57.0		(5.3	)
Operating margin (%)		44.5		36.8		(7.8	)
Profit Margin (%)		21.6		17.5		(4.1	)
Current ratio (%)		77.3		54.2		(23.1	)
Return on Assets (%)		15.7		11.6		(4.1	)
Return on Equity (%)		38.1		30.9		(7.1	)
Total Liabilities to Equity (%)		115.6		137.7		(22.1	)
Gearing (Net Debt to Equity) (%)		16.2		36.6		20.4
Debt to Equity (%)		46.7		57.6		10.8
Debt to EBITDA (%)		42.5		57.1		14.6
Debt Service Ratio (Times)		5.4		4.1		(1.3	)
EBITDA to Interest Expense (times)		25.8		21.9		(3.9	)
EBITDA to Net Debt (%)		677.8		276.0		(401.8	)

The Year End of 2008 Results (Audited)

Table 5
Legacy and New Wave Revenues
As of Dec 31, 2007 and 2008


	Revenue (Rp. Bn)							Portion (%)
	2007		2008		Growth (%)			2007		2008
LEGACY REVENUE		55,546		55,126		(0.8	)		93.4		90.8
Wireline		18,021		15,878		(11.9	)		30.3		26.2
Telephony *)		18,021		15,878		(11.9	)		30.3		26.2
Fixed Wireless		3,240		3,247		0.2			5.5		5.4
Telephony *)		2,783		2,741		(1.5	)		4.7		4.5
SMS		457		506		10.8			0.8		0.8
Cellular		32,852		33,892		3.2			55.3		55.8
Telephony *)		22,085		24,745		12.0			37.2		40.8
SMS		10,767		9,147		(15.0	)		18.1		15.1
Network service		678		1,069		57.6			1.1		1.8
Others		754		1,039		37.8			1.3		1.7

NEW WAVES REVENUE		3,895		5,564		42.9			6.6		9.2
Data & Communication		909		1,345		48.0			1.5		2.2
Internet		2,859		3,840		34.3			4.8		6.3
IT Service		51		321		529.5			0.1		0.5
Others		76		58		(23.6	)		0.1		0.1
TOTAL		59,440		60,690		2.1			100.0		100.0


*)		Telephony revenue includes net interconnection revenue

Note: This revenues segmentation may slightly differ from financial statement

Table 6
FIXED TELEPHONE LINES
As of Dec 31, 2007 and 2008


	UNIT	2007		2008		Growth (%)
Exchange Capacity
Wireline	Lines (’000)		10,732		11,039		2.9	%
Wireless	Lines (’000)		12,832		15,885		23.8	%
Total Exchange Cap.	Lines (’000)		23,564		26,924		14.3	%

Installed Lines
Wireline	Lines (’000)		9,705		9,839		1.4	%
Wireless	Lines (’000)		9,384		19,861		111.7	%
Total Installed Lines	Lines (’000)		19,089		29,700		55.6	%

Subscribers
Wireline	Lines (’000)		8,324		8,303		-0.3	%
Wireless	Lines (’000)		6,336		12,699		100.4	%
Total Subscribers	Lines (’000)		14,660		21,002		43.3	%

Public Phone
Wireline	Lines (’000)		361		327		-9.4	%
Wireless	Lines (’000)		27		27		-1.5	%
Total Public Phone	Lines (’000)		388		354		-8.9	%

Lis Fixed
Wireline	Lines (’000)		8,685		8,630		-0.6	%
Wireless	Lines (’000)		6,363		12,725		100.0	%
Total Lines In Services	Lines (’000)		15,048		21,355		41.9	%

The Year End of 2008 Results (Audited)

Table 7
FLEXI PERFORMANCE
As of Dec 31, 2007 and 2008


	UNIT	2007		2008			Growth (%)
Customer base
Classy/Postpaid	SSF (’000)		828		731			(11.7	)
Trendy/Prepaid	SSF (’000)		5,535		11,994			116.7
Total/Blended	SSF (’000)		6,363		12,725			100.0

Net additional
Classy/Postpaid	SSF (’000)		34		(97	)		(387.7	)
Trendy/Prepaid	SSF (’000)		2,153		6,460			200.0
Total/Blended	SSF (’000)		2,187		6,363			190.9

ARPU
Classy/Postpaid	Rp (000)		114		93			(18.4	)
Trendy/Prepaid	Rp (000)		45		32			(28.9	)
Total/Blended	Rp (000)		53		38			(28.3	)

MOU (Minute of use)	mn minutes		9,327		13,593			45.7
SMS	mn messages		1,998		3,628			81.6

NETWORK
BTS	BTS		1,911		4,054			112.1
Coverage	Cities		238		353			48.3

The Year End of 2008 Results (Audited)

Table 8
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
BALANCE SHEET
As of Dec 31, 2007 and 2008
(In billion Rupiah)


	2007		2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents		2,776		1,155
Acct. /Unbilled receivables		856		550
Prepayments		938		1,341
Others		489		1,211
Total Current Assets		5,059		4,257

NON-CURRENT ASSETS
Long-term Investment		20		20
Fixed Assets — net		38,251		46,359
Advances for Fixed Assets		98		1
Equipment not used in operations — net		56		37
Intangible assets — net		378		331
Others		815		926
Total Non-Current Assets		39,618		47,674
TOTAL ASSETS		44,677		51,931

CURRENT LIABILITIES
Short-term loans		533		—
Accounts payable & Accr. Liabilities		5,356		10,239
Taxes payable		1,878		236
Unearned revenue		2,004		2,416
Curr. maturities of med/long-term loans		2,632		4,740
Curr. maturities of oblig. under cap. lease		—		130
Total Current Liabilities		12,403		17,761

NON-CURRENT LIABILITIES
Med/Long term loan — net of current maturities		3,880		4,640
Deferred tax liabilities		2,042		2,245
Others		160		252
Total Non-current Liabilities		6,082		7,137

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		24,504		25,345
Total Equity		26,192		27,033

TOTAL LIAB. & STOCKHOLDERS’ EQUITY		44,677		51,931

The Year End of 2008 Results (Audited)

Table 9
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
INCOME STATEMENT
For the Year Ended Dec 31, 2007 and 2008
(In billion Rupiah)


	2007			2008
OPERATING REVENUES
Post-paid		5,086			4,243
Prepaid		29,838			31,888
International roaming		579			652
Interconnection : — Revenues		3,276			3,008
— Expense		(2,129	)		(2,636	)
Other (Network lease)		21			44
Net Operating Revenues		36,671			37,199

OPERATING EXPENSES
Personnel		1,397			1,345
Operation & maintenance		6,236			7,944
General & administrative		761			740
Marketing		923			1,208
Other operating expenses		1,750			1,900
Depreciation		5,725			7,264
Total Operating Expenses		16,792			20,401

EBIT (EARNINGS BEFORE INTEREST & TAXES)		19,879			16,798
OTHER INCOME/(EXPENSES)
Interest income & financing charges		(330	)		(650	)
Foreign exchange gain/(loss)		(57	)		(468	)
Others — net		(92	)		139
Other income/(expenses) — net		(479	)		(979	)

INCOME BEFORE TAX		19,400			15,819
INCOME TAX EXPENSE		5,776			4,397
NET INCOME		13,624			11,422

EBITDA		25,604			24,062
EBITDA Margin — over net oper. revenues		70	%		65	%

ROA		33	%		24	%
ROE		55	%		43	%

The Year End of 2008 Results (Audited)

Table 10
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
OPERATIONAL INDICATORS
As of Dec 31, 2007 and 2008


	Unit	2007			2008			Growth
CUSTOMER BASE
Customer Base
kartuHALO	Subs (000)		1,913			1,940			1.4	%
simPATI	Subs (000)		23,986			43,033			79.4	%
Kartu As	Subs (000)		21,991			20,327			-7.6	%
Total	Subs (000)		47,890			65,300			36.4	%
Net Additions
kartuHALO	Subs (000)		251			27			-89.1	%
simPATI	Subs (000)		2,608			19,047			630.3	%
Kartu As	Subs (000)		9,434			(1,664	)		-117.6	%
Total	Subs (000)		12,293			17,410			41.6	%

MOU (excluding free & incoming mins)	bn minutes		25.2			90.2			257.3	%

ARPU
Total (12 months average)
kartuHALO	Rp.’000/month		264			216			-18.3	%
simPATI	Rp.’000/month		84			63			-25.1	%
Kartu As	Rp.’000/month		57			37			-34.9	%
Blended	Rp.’000/month		80			59			-26.9	%
Non-voice/Data (12 months average)
kartuHALO	Rp.’000/month		49			40			-18.8	%
simPATI	Rp.’000/month		25			16			-35.7	%
Kartu As	Rp.’000/month		23			18			-23.3	%
Blended	Rp.’000/month		25			17			-30.1	%

NETWORK DATA
Network Capacity
Base stations installed (GSM/DCS/3G)	Unit		20,858			26,872			28.8	%
Overall capacity all network elements	Subs. mln.		50.5			67.3			33.3	%
Quality of Service
Call success rate	%		94.24	%		93.61	%		-0.6	%
Call completion rate	%		99.20	%		98.73	%		-0.5	%

EMPLOYEE DATA
Total employees	person		4,080			4,129			1.2	%
Efficiency ratio	Subs/employee		11,738			15,815			34.7	%

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