6-K 1 u00248e6vk.htm PT TELEKOMUNIKASI INDONESIA

PT TELEKOMUNIKASI INDONESIA

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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

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SIGNATURES

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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

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The First Quarter 2009 Results (Un-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 March 31, 2009)

CONVERSION RATES (US$ 1.00):
2008 = Rp.9,215.0 (Mar 31,2008)
2009 = Rp.11,555.0 (Mar 31,2009)

NOTABLE FIGURES:

n		Based on YoY comparison , Flexi, cellular and Speedy subscribers grew by 99%, 41% and 145%, respectively
n		On YoY basis, Total Operating Revenues decreased by 2.2% to Rp.14.7 trillion.
n		Total Expenses increased by 10.9% and EBITDA decreased by 8.2%, mainly due to an increase in radio frequency usage charges following the growth in BTS number. The number increase in total BTS also contribute to a 18.6% increase in depreciation expense.
n		Net Income decreased by 23.4% to Rp.2.5 trillion due to the forex losses of Rp.212 billion
n		New Wave revenue grew by 74%, and its contribution to total revenue increased by 4% to 9%

FIXED LINE LIS vs CELLULAR SUBSCRIBERS
Q1/09 (in mn)

OPERATIONAL HIGHLIGHTS:

		Q1/08				Q1/09
Descriptions		(‘000)				(‘000)				Growth (%)
Fixed Line:
LIS Wireline			8,662				8,657				-0.1
LIS Wireless (Flexi):			6,718				13,399				99.4
— Post paid			779				684				-12.2
— Prepaid			5,939				12,715				114.1
Total Fixed Line			15,380				22,056				43.4
Cellular:
— Postpaid			1,880				1,954				3.9
— Prepaid			49,455				70,179				41.9
Total Cellular			51,335				72,133				40.5
ADSL (Speedy)			292				716				144.8

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

TELKOM FINANCIAL
INDICATORS — Q1/09 (in Rp.Tn)

FINANCIAL HIGHLIGHTS (Consolidated):

Key Indicators		Q1/08				Q1/09				Growth (%)
Op. Revenues (Rp. bn)			15,032				14,702				-2.2
Op. Expenses (Rp. bn)			8,489				9,414				10.9
Op. Income (Rp. bn)			6,542				5,288				-19.2
EBITDA (Rp. bn)			9,339				8,570				-8.2
Net Inc. (Rp. bn)			3,207				2,458				-23.4
Net Inc./Share(Rp)			161.50				124.46				-22.9
Net Inc./ADS(Rp)			6,460.0				4,978.40				-22.9
EBITDA Margin (%)			62.1				58.3				-3.8

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

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The first quarter 2009 Results (Un audited)

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ANNOUNCEMENT FOR THE FIRST QUARTER OF 2009 RESULTS (Un-udited)

Jakarta, May 13, 2009— PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”) has announced its operational and un-audited consolidated financial statements results for the first quarter of 2009. All financial figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP).

Enter 2009, we focus on raising and maintaining standards of excellence, by anticipating the rapid evolution in technology and consumer lifestyle.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of March 31, 2009, TELKOM recorded 22.1 million fixed lines in service, consisting of 8.7 million fixed wirelines and 13.4 million fixed wireless.

Fixed-Wireless CDMA Services

In this period, total Flexi’BTS was reached 4.540 unit. As of March 31, 2009, TELKOMFlexi has market share more than 58.3% with 13.4 million subscribers. During Q1/09, TELKOMFlexi has still maintained its leading position as a dominat player in the fixed wireless market with ARPU (blended) amount Rp. 23K. Meanwhile, the total wireless production grew by 41% from 2,969 billion minutes to 4,187 billion minutes.

As of March 31, 2009, net adds for Flexi reached 674K or grew by 89.5%, compared to Q1/08 figures.

For detail information of TELKOMFlexi performance as of March 31, 2009, please see on Table 7.

Cellular Services

As of March 31, 2009, Telkomsel has more than 49% subscribers market share with a total of 72.1 million subscribers.

During the first quarter of 2009, Telkomsel added 928 new BTS (including 3G-BTS), and 74.6 million subscribers capacity. As of March 31, 2009, total Telkomsel’s BTS grew by 27.8% to 27,800 units.

Broadband Services

As of March 31, 2009, there were 716K subscribers of broadband ADSL internet access (Speedy) or 144,8 % growth from 292K subscribers compared to last year. The revenues from Speedy services for Q1/09 has reached Rp.573.5 billion.

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FINANCIAL RESULTS

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

Balance Sheet

During Q1/09, TELKOM’s Total Assets increased 11.6% from Rp.81,800.9 billion to Rp.91,292.8 billion.

	§		Current Assets, decreased by 6.0% to Rp.14,324.7 billion, mainly due to lower cash balance as result from increasing in cash payments for investing activities during Q1/09.
	§		Non Current Assets increased by 15.6% to Rp.76,968.1 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 25.0% to Rp.43,918.3 billion and Total equities increased by 1.9% to Rp.36,793.4 billion.

§ Current liabilities increased by 44.3% to Rp.25,292.1 billion due to increasing in trade payables and current maturities of long-term maturities.

§ Non-current liabilities increased by 5.8% to Rp.18,626.2 billion due to increasing in bank loans.

Profit and Loss Statement

Operating Revenues

Operating Revenues decreased by Rp.329.4 billion or 2.2% compared to the same period last year summarized as follows:

§ Cellular revenues increased by Rp.551.4 billion or 9.2% compared to the same period last year, mainly due to the growth in Telkomsel’s Minutes of Usage (MOU) by 59.9% as a result from 40.5% growth the cellular subscribers to 72.1 million.

§ Fixed line Revenues decreased by Rp.423.8 billion or 16.7% compared to the same period last year. Decreasing in this revenue due to decreasing 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, fixed wireline pulse production for this year less than previous year.

During Q1/09, Flexi revenue contributed to total TELKOM’s revenue in the amount of Rp.844 billion

TELKOMFlexi revenue contributed to total TELKOM’s revenue in the amount of Rp.844 billion consisting of installation charges, monthly subscription charges, local & domestic long distance revenues which

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		amounted to Rp.258 billion, while interconnection, SMS, Internet revenues amounted to Rp.437 billion, Rp.137 billion and Rp.12. billion respectively.
§		Interconnection Revenues. On a net basis, the Interconnection revenues decreased by Rp.344.2 billion, or 15.2%. 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 new services with very low tariff.

§ Data, Internet and information technology services revenues decreased by Rp.228.9 billion, or 5.8%. Decreasing in these revenues was primarily due to significant decreases in SMS tariffs in Telkomsel.

§ Network revenues increased by Rp.44.7 billion or 20.4%, mainly due to increase in leased line services as a result from integrated marketing and sales development for leased lines services during Q1/09.

§ Revenues Sharing Agreement decreased by Rp.54.2 billion or 55.3% due to the decrease in total number of revenue sharing arrangements contracts caused by terminate those contracts.

Q1/09 Net Income showed positive results and increased significantly by 44.7% compared to Q4/08

To make comparison with previous quarter (Q4/09), below we represent the proforma QoQ table, which are presented on net basis.

		QoQ
Account		Q4/08				Q1/09				Growth
Operating Rev.(Rp.bn)			16,090				14,702				-8.6	%
Operating Expense (Rp. Bn)			10,961				9,414				-14.1	%
Operating Income (Rp. Bn)			5,129				5,288				3.1	%
EBITDA (Rp. Bn)			8,641				8,570				-0.8	%
Net Income (Rp. Bn)			1,699				2,458				44.7	%
EBITDA Margin (%)			53.7	%			58.3	%			4.6	%

Based on QoQ comparison, for Q1/09, Net Income showed positive results and increased significantly by 44.7% although Operating revenues decreased by 8.6%. And, EBITDA Margin reached 58.3% or increased by 4.6%.

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

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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 this strategy, we provide Table 5, containing financial results for Legacy & New wave businesses

New wave revenues grew by 74.4% and contribution to total revenues has increased by 4%

For the Q1/09, the Legacy revenue declined by 6.2% as wireline customers usage move towards cellular services and due to ongoing pressure on cellular prices. The new wave revenue grew by 74.4%, and its contribution to total revenue increased from 5.0% in the Q1/08 to 9.0% in the Q1/09. The decline of Legacy revenue was partially offset by an increase of New Waves revenues.

Operating Expenses

Operating Expenses increased by Rp.924.9 billion or 10.9%, summarized as follows:

§ Operation & Maintenance Expense increased by Rp.782.5 billion or 31.2%, mainly resulting from the Telkomsel’s network infrastructure growth (BTS grew by 27.8% from 21,752 to 27,800 units and overall network capacity increased by 39.2% which affected maintenance costs, frequency fees and power supply costs).

§ Depreciation Expenses increased by Rp.464.1 billion or 18.6%, mainly due to increasing in depreciation expenses of Telkomsel by 26.4% resulting from new infrastructure growth (BTS grew by 27.8% and overall network capacity increased by 39.2%).

§ Marketing expenses increased by Rp.37.6 billion or 10.0%, mainly due to increasing in marketing and promotion programs, and also customers education for cellular and Flexi.

§ Personnel expenses decreased by Rp.342.1 billion, or 15.2%. The main contributors were the decrease in a vocation pay, incentives and other benefits and from employee income tax payment related to early termination benefits paid in 2008.

§ General and Administrative expenses decreased by Rp.17.2 billion, or 2.0%, mainly due to a decrease in provision for doubtful account.

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For the period ending March 31, 2009, TELKOM recorded Operating Income of Rp.5,288.2 billion or decrease of 19.2% compared to the same period last year and EBITDA of Rp. 8,570 billion or an decrease of 8.2%.

In accordance with 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, entitle to obtain a reduction of corporate income tax by 5%. Management believe that TELKOM will fulfill the requirement and accordingly will entitle to the tax reduction. However, for conservative purpose, in Q1/09, TELKOM had not recognized the benefit that would reduce income tax and increase net income by Rp73 billion. Management will conduct an assessment at Q2/09 and will recognized the benefit should all requirement have been fulfilled by TELKOM.

Capital Expenditure

During the first quarter 2009, Capex allocation for TELKOM amounted to Rp.1,431 billion and Telkomsel for Rp.1,517 billion. There were 928 Telkomsel’s new BTS (including 301 3G BTS) installed from this capex.

Debt portion in US$ has decreased by 9% to 22% of total debt

Consolidated Debt

As of March 31, 2009, the breakdown of debt portfolio (short-term and long-term) in foreign currencies and Rupiah equivalents were as follows:

		Original (in million)								Rp (in billion)								Portion (%)
Currencies		Q1/08				Q1/09				Q1/08				Q1/09				Q1/08				Q1/09
IDR / Rupiah			8,543,279				12,780,934				8,543.3				12,780.9				59.4	%			70.1	%
U.S. Dollar			489				346				4,505.6				4,006.1				31.3	%			22.0	%
Japanese Yen			13,242				12,286				1,228.8				1,447.5				8.5	%			7.9	%
EURO			7				—				106.8								0.8	%			0.0	%
Total											14,384.5				18,234.5				100.1	%			100.0	%

Since 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 for one year ahead.

Human Resources

As of March 31, 2009, the total number of employees at TELKOM (as a parent company) and Telkomsel were 24,884 persons and 4,128 persons respectively.

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Recent Developments

Reshetnev to build Telkom-3 Satellite

ISS-Reshetnev will build Telkom-3 satellite and this is expected to be ready for the launch in August 2011

PT Telkom has awarded a contract to Russia’s ISS-Reshetnev for the supply of a new telecommunications satellite. ISS-Reshetnev will build the operator’s Telkom-3 telecoms satellite, provide satellite control equipment and training, as well as providing internship for Telkom technicians. Telkom-3 is expected to be ready for the launch in August 2011.

Telkom-3 will expand the operator’s capacity from 118°E orbital location in C-band and will offer new transponders in Ku-band with three coverages over South East Asia for DTH and GSM/Internet backhaul services.

The satellite’s total mass at launch will be approximately 1.6 tons and the payload power about 5.6 kW. Telkom-3 will carry 32 C-band and 10 Ku-band transponders and life time 15 years.

Telkom, Orange ink network services partner agreement

France Telecom’s Orange Business Services unit and Telkom have signed a contract to provide advanced network services (including IP VPNs) to Indonesian and multinational enterprises working in the country. The French firm has also appointed Telkom as a distributor of its global network services for Telkom customers which are looking to expand in international markets.

TELKOM recorded on 675 of the Forbes Global 2000

In 2009, the ranking of Telkom to become the highest ranking among the six Indonesian companies that enter the list of Forbes Global 2000.

For the third time, TELKOM successfully re-enter into the Forbes Global 2000 in 2009 by achieving the rank of 675, the highest rank among the six Indonesian companies that enter the list of Forbes Global 2000. Previously, Forbes rank TELKOM at 729 and 835 in 2008 and 2007 as largest public company in Indonesia.

Forbes Global 2000 rank is based on the amount of income, profits, assets and market value.

VP Investor Relations & Corporate Secretary,

HERI SUPRIADI

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Table 1
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UN-AUDITED)
As of March 31, 2008 and 2009
(in million Rupiah)

		2008				2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents			9,830,473				6,509,704
Temporary investments			186,708				287,558
Trade receivables
Related parties — net of allowance for doubtful accounts of Rp.130,703 million in 2008 and Rp.114,447 million in 2009			399,786				770,121
Third parties — net of allowance for doubtful accounts of Rp.1,161,958 million in 2008 and Rp.1,174,383 million in 2009			2,658,133				3,003,901
Other receivables — net of allowance for doubtful accounts of Rp.10,719 million in 2008 and Rp.7,734 million in 2009			122,953				102,809
Inventories — net of allowance for obsolescence of Rp.56,868 million in 2008 and Rp.68,111 million in 2009			253,898				493,683
Prepaid expenses			1,226,795				2,087,031
Claims for tax refund			408,011				222,954
Prepaid taxes			71,366				803,700
Other current assets			75,686				43,201
Total Current Assets			15,233,809				14,324,662
NON-CURRENT ASSETS
Long-term investments — net			140,261				170,184
Property, plant and equipment — net of accumulated depreciation of Rp.56,472,320 million in 2008 and Rp.64,853,338 million in 2009			60,392,109				71,165,921
Property, plant and equipment under Revenue-Sharing Arrangements — net of accumulated depreciation of Rp.524,688 million in 2008 and Rp.272.514 million in 2009			664,787				453,847
Prepaid pension benefit cost			557				176
Advances and other non-current assets			1,624,082				2,260,788
Goodwill and other intangible assets — net of accumulated amortization of Rp.5,389,667 million in 2008 and Rp.6,641,019 million in 2009			3,743,962				2,873,087
Escrow accounts			1,285				44,105
Total Non-current Assets			66,567,043				76,968,108
TOTAL ASSETS			81,800,852				91,292,770

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Table 1 (continued)
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UN-AUDITED)
As of March 31, 2008 and 2009
(in million Rupiah)

		2008				2009
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade payables
Related parties			577,569				1,238,113
Third parties			4,845,103				8,954,257
Other payables			50,509				23,168
Taxes payable			1,554,280				1,163,836
Accrued expenses			3,069,501				3,383,731
Unearned income			2,477,559				2,794,029
Advances from customers and suppliers			174,824				711,724
Short-term bank loans			215,814				42,612
Current maturities of long-term liabilities			4,567,427				6,980,674
Total Current Liabilities			17,532,586				25,292,144
NON-CURRENT LIABILITIES
Deferred tax liabilities — net			3,023,781				2,898,126
Unearned income on Revenue-Sharing Arrangements			443,013				267,392
Accrued long service awards			76,806				108,722
Accrued post-retirement health care benefits			2,894,582				2,553,531
Accrued pension and other post-retirement benefits costs			1,324,308				1,057,509
Long term liabilities — net of current maturities
Obligations under finance leases			209,515				292,772
Two-step loans — related party			3,688,710				3,874,738
Bank loans			3,830,987				6,393,675
Deferred consideration for business combinations			2,117,166				1,179,701
Total Non-current Liabilities			17,608,868				18,626,166
MINORITY INTEREST			10,556,996				10,581,091
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 — 337,293,000 shares in 2008 and 490,574,500 shares in 2009			(3,030,368	)			(4,264,114	)
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 gain from available-for-sale securities			12,586				1,653
Translation adjustment			228,914				239,055
Retained earnings
Appropriated			6,700,879				10,557,985
Unappropriated			25,421,463				23,399,862
Total Stockholders’ Equity			36,102,402				36,793,369
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			81,800,852				91,292,770

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Table 2
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UN-AUDITED)
THE THREE MONTHS PERIOD ENDED MARCH 31, 2008 and 2009
(in million Rupiah)

		2008				2009
OPERATING REVENUES
Telephone
Fixed lines			2,540,438				2,116,593
Cellular			5,966,083				6,517,451
Interconnection
Revenues			3,041,324				2,659,347
Expenses			(781,585	)			(743,834	)
Net			2,259,739				1,915,513
Data, internet and information technology services			3,944,676				3,715,768
Joint operation schemes			—				—
Network			218,807				263,470
Revenue-Sharing Arrangements			97,936				43,773
Other telecommunications services			3,924				129,610
Total Operating Revenues			15,031,603				14,702,178
OPERATING EXPENSES
Depreciation			2,500,577				2,964,718
Personnel			2,246,902				1,904,766
Operations, maintenance and telecommunication services			2,506,173				3,288,635
General and administrative			858,482				841,257
Marketing			376,981				414,604
Total Operating Expenses			8,489,115				9,413,980
OPERATING INCOME			6,542,488				5,288,198
OTHER INCOME (EXPENSES)
Interest income			174,205				138,451
Equity in net (loss) income of associated companies			(874	)			931
Interest expense			(263,146	)			(517,388	)
Gain (loss) on foreign exchange — net			(45,655	)			(211,718	)
Others — net			102,916				56,371
Other income (expenses) — net			(32,554	)			(533,353	)
INCOME BEFORE TAX			6,509,934				4,754,845
TAX EXPENSE
Current			(2,058,376	)			(1,405,610	)
Deferred			5,363				6,747
			(2,053,013	)			(1,398,863	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF CONSOLIDATED SUBSIDIARIES			4,456,921				3,355,982
MINORITY INTEREST IN NET INCOME OF CONSOLIDATED SUBSIDIARIES — Net			(1,249,587	)			(898,098	)
NET INCOME			3,207,334				2,457,884
BASIC EARNINGS PER SHARE
Net income per share			161.50				124.46
Net income per ADS (40 Series B shares per ADS)			6,460.00				4,978.40

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Table 3
PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UN-AUDITED)
FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2008 and 2009
(in million Rupiah)

		2008				2009
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines			2,503,591				2,117,409
Cellular			6,045,820				6,609,813
Interconnection — net			2,376,289				1,676,398
Data and internet			3,937,349				3,517,751
Other services			352,792				455,429
Total cash receipts from operating revenues			15,215,841				14,376,800
Cash payments for operating expenses			(5,820,282	)			(6,306,827	)
Cash receipt from customers			33,328				569,313
Cash generated from operations			9,428,887				8,639,286
Interest received			174,829				151,759
Interest paid			(236,489	)			(571,434	)
Income tax paid			(3,208,328	)			(966,307	)
Net Cash Provided by Operating Activities			6,158,899				7,253,304
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of temporary investments and maturity of time deposits			40,784				4,242
Purchase of temporary investments and placements in time deposits			(21,548	)			(4,036	)
Proceeds from sale of property, plant and equipment			5,298				844
Acquisition of property, plant and equipment			(3,600,112	)			(5,031,228	)
Increase in advances for purchase of property, plant and equipment			(169,857	)			(917,871	)
Increase in advances and others			(33,885	)			(40,907	)
Business combinations, net of cash paid			(323,541	)			—
Acquisition of long-term investments			(28,923	)			—
Cash dividends received			618				863
Acquisition of intangible assets			—				(2,013	)
Increase in escrow accounts			—				6,745
Net Cash Used in Investing Activities			(4,131,166	)			(5,983,361	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings			11,312				5,713
Repayments of short-term borrowings			(371,763	)			(13,500	)
Proceeds from long-term borrowings			—				304,399
Repayments of long-term borrowings			(993,484	)			(1,889,197	)
Payment for purchase of treasury stock			(853,757	)			(41	)
Repayments of promissory notes			(101,355	)			(123,927	)
Repayments of obligations under capital leases			(3,980	)			(59,747	)
Net Cash Used in Financing Activities			(2,313,027	)			(1,776,300	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS			(285,294	)			(506,357	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			(25,024	)			126,116
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR			10,140,791				6,889,945
CASH AND CASH EQUIVALENTS AT END OF PERIOD			9,830,473				6,509,704

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The first quarter 2009 Results (Un audited)

12

Table 4
FINANCIAL RATIOS
As of March 31, 2008 and 2009

		2007				2008				Growth (%)
Contribution to total fixed lines revenue:
Local & SLJJ usage (%)			61.5				52.5				(9.1	)
Monthly subscription charges (%)			36.2				43.2				7.0
Installation charges (%)			1.2				1.5				0.3
Phone Card (%)			0.0				0.1				0.1
Others (%)			1.1				2.7				1.7
Contribution to total operating revenues:
Cellular (%)			39.7				44.3				4.6
Fixed lines (%)			16.9				14.4				(2.5	)
Interconnection (%)			15.0				13.0				(2.0	)
Data, internet and information technology services (%)			26.2				25.3				(1.0	)
Network (%)			1.5				1.8				0.3
Revenue-Sharing Arrangements (%)			0.7				0.3				(0.4	)
Other telecommunications services (%)			0.0				0.9				0.8
ARPU (Rp’000)			160.0				119.0				(25.6	)
EBITDA (Rp million)			9,339.4				8,569.6				(8.2	)
EBITDA margin (%)			62.1				58.3				(3.8	)
Operating margin (%)			43.5				36.0				(7.6	)
Profit Margin (%)			21.3				16.7				(4.6	)
Current ratio (%)			86.9				56.6				(30.3	)
Return on Assets (%)			3.9				2.7				(1.2	)
Return on Equity (%)			8.9				6.7				(2.2	)
Total Liabilities to Equity (%)			97.3				119.4				22.0
Gearing (Net Debt to Equity) (%)			12.1				31.0				18.9
Debt to Equity (%)			39.8				49.6				9.7
Debt to EBITDA (%)			154.0				212.8				58.8
Debt Service Ratio (Times)			1.9				1.2				(0.7	)
EBITDA to Interest Expense (times)			35.5				16.6				(18.9	)
EBITDA to Net Debt (%)			213.9				75.2				(138.7	)

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The first quarter 2009 Results (Un audited)

13

Table 5
Legacy and New Wave Revenues
As of March 31, 2008 and 2009

		Revenue (Rp. Bn)												Portion (%)
		2008				2009				Growth (%)				2008				2009
LEGACY REVENUE			14,276				13,384				(6.2	)			95.0				91.03
Wireline			4,139				3,455				(16.5	)			27.5				23.5
Telephony *)			4,139				3,455				(16.5	)			27.5				23.5
Fixed Wireless			781				740				(5.2	)			5.2				5.0
Telephony *)			681				603				(11.4	)			4.5				4.1
SMS			100				137				37.3				0.7				0.9
Cellular			9,041				8,746				(3.3	)			60.1				59.5
Telephony *)			5,822				6,376				9.5				38.7				43.4
SMS			3,219				2,370				(26.4	)			21.4				16.1
Network service			215				273				27.1				1.4				1.9
Others			100				169				68.7				0.7				1.2
NEW WAVES REVENUE			756				1,318				74.4				5.0				9.0
Data & Communication			249				344				38.1				1.7				2.3
Internet			462				859				85.9				3.1				5.8
IT Service			34				101				193.9				0.2				0.7
Others			10				14				39.2				0.1				0.1
TOTAL			15,032				14,702				(2.2	)			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 March 31, 2008 and 2009

		Unit				2008				2009				Growth (%)
Exchange Capacity
Wireline		Lines (’000)					10,673				10,961				2.7	%
Wireless		Lines (’000)					14,595				18,435				26.3	%
Total Exchange Cap.		Lines (’000)					25,268				29,396				16.3	%
Installed Lines
Wireline		Lines (’000)					9,858				9,791				-0.7	%
Wireless		Lines (’000)					9,673				22,508				132.7	%
Total Installed Lines		Lines (’000)					19,530				32,299				65.4	%
Subscribers
Wireline		Lines (’000)					8,307				8,337				0.4	%
Wireless		Lines (’000)					6,691				13,374				99.9	%
Total Subscribers		Lines (’000)					14,998				21,712				44.8	%
Public Phone
Wireline		Lines (’000)					356				320				-10.0	%
Wireless		Lines (’000)					28				25				-11.0	%
Total Public Phone		Lines (’000)					383				345				-10.1	%
Lis Fixed
Wireline		Lines (’000)					8,662				8,657				-0.1	%
Wireless		Lines (’000)					6,719				13,399				99.4	%
Total Lines In Services		Lines (’000)					15,381				22,056				43.4	%

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The first quarter 2009 Results (Un audited)

14

Table 7
FLEXI PERFORMANCE
As of March 31, 2008 and 2009

		UNIT				2008				2009				Growth (%)
Customer base
Classy/Postpaid		SSF (’000)					779				684				-12.2
Trendy/Prepaid		SSF (’000)					5,939				12,715				114.1
Total/Blended		SSF (’000)					6,718				13,399				99.4
Net additional
Classy/Postpaid		SSF (’000)					(49	)			(47	)			-3.6
Trendy/Prepaid		SSF (’000)					404				720				78.2
Total/Blended		SSF (’000)					355				674				89.5
ARPU
Classy/Postpaid		Rp (000)					100				83				-17.0
Trendy/Prepaid		Rp (000)					36				20				-44.4
Total/Blended		Rp (000)					43				23				-46.5
MOU (Minute of use)		mn minutes					2,969				4,187				41.0
SMS		mn messages					609				1,229				101.8
NETWORK
BTS		BTS					2,153				4,540				110.9
Coverage		Cities					254				353				39.0

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The first quarter 2009 Results (Un audited)

15

Table 8
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
BALANCE SHEET
As of March 31, 2008 and 2009
(In billion Rupiah)

		2008				2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents			4,227				2,047
Acct. /Unbilled receivables			771				551
Prepayments			724				1,502
Others			513				880
Total Current Assets			6,235				4,980
NON-CURRENT ASSETS
Long-term Investment			20				20
Fixed assets — net			38,988				46,567
Advances for fixed assets			70				1
Equipment not used in operations — net			52				30
Intangible assets — net			366				319
Others			821				1,028
Total Non-Current Assets			40,317				47,965
TOTAL ASSETS			46,552				52,945
CURRENT LIABILITIES
Short-term loans			167				—
Accounts payable & Accr. Liabilities			5,435				9,431
Taxes payable			914				540
Unearned revenue			2,037				2,461
Curr. maturities of med/long-term loan			2,636				4,560
Curr. maturities of oblig. under finance lease			—				114
Total Current Liabilities			11,189				17,106
NON-CURRENT LIABILITIES
Med/Long term loan — net of current maturities			3,240				3,680
Deferred tax liabilities			2,137				2,293
Others			180				255
Total Non-current Liabilities			5,557				6,228
EQUITY
Capital stock — Rp 1,000,000 par value			183				183
Authorized — 650,000 shares
Issued and fully paid — 182,570 shares
Additional paid-in capital			1,505				1,505
Retained earnings			28,118				27,923
Total Equity			29,806				29,611
TOTAL LIAB. & STOCKHOLDERS’ EQUITY			46,552				52,945

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The first quarter 2009 Results (Un audited)

16

Table 9
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
INCOME STATEMENT
FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2008 and 2009
(In billion Rupiah)

		2008				2009
OPERATING REVENUES
Post-paid			1,204				994
Prepaid			7,985				8,026
International roaming			151				159
Interconnection : — Revenues			807				594
— Expense			(554	)			(567	)
Other (network lease)			5				42
Net Operating Revenues			9,598				9,248
OPERATING EXPENSES
Personnel			316				291
Operation & maintenance			1,655				2,186
General & administrative			168				175
Marketing			227				222
Other operating expenses			443				479
Depreciation			1,548				1,956
Total Operating Expenses			4,357				5,309
EBIT (EARNINGS BEFORE INTEREST & TAXES)			5,241				3,939
OTHER INCOME/(EXPENSES)
Interest income & financing charges			(106	)			(262	)
Foreign exchange gain/(loss)			13				(84	)
Others — net			40				(7	)
Other income /(expenses) — net			(53	)			(353	)
INCOME BEFORE TAX			5,188				3,586
INCOME TAX EXPENSE			1,573				1,008
NET INCOME			3,615				2,578
EBITDA			6,790				5,895
EBITDA Margin — over net oper. revenues			71	%			64	%
ROA			33	%			20	%
ROE			51	%			35	%

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The first quarter 2009 Results (Un audited)

17

Table 10
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
OPERATIONAL INDICATORS
As of March 31, 2008 and 2009

		Unit				2008				2009				Growth (%)
CUSTOMER BASE
Customer Base
kartuHALO		Subs. (000)					1,880				1,954				3.9	%
simPATI		Subs. (000)					29,176				50,206				72.1	%
Kartu As		Subs. (000)					20,279				19,973				-1.5	%
Total		Subs. (000)					51,335				72,133				40.5	%
Net Add
kartuHALO		Subs. (000)					(33	)			14				142.4	%
simPATI		Subs. (000)					5,190				7,173				38.2	%
Kartu As		Subs. (000)					(1,713	)			(353	)			79.4	%
Total		Subs. (000)					3,444				6,834				98.4	%
MOU (excluding free & incoming mins)		bn minutes					20.7				33.1				59.9	%
ARPU
Total (3 months average)
kartuHALO		Rp.’000/month					240				200				-16.7	%
simPATI		Rp.’000/month					76				49				-35.5	%
Kartu As		Rp.’000/month					40				26				-35.0	%
Blended		Rp.’000/month					67				47				-29.9	%
Non-voice/Data (3 months average)
kartuHALO		Rp.’000/month					49				40				-17.7	%
simPATI		Rp.’000/month					22				13				-40.9	%
Kartu As		Rp.’000/month					22				12				-45.5	%
Blended		Rp.’000/month					23				13				-43.5	%
NETWORK DATA
Network Capacity
Base stations installed (GSM/DCS/3G)		Unit					21,752				27,800				27.8	%
Overall capacity all network elements		Subs. mln.					53.6				74.6				39.2	%
Quality of Service
Call success rate		%					95.28	%			96.26	%			1.0	%
Call completion rate		%					98.58	%			98.66	%			0.1	%
EMPLOYEE DATA
Total employees		person					4,020				4,128				2.7	%
Efficiency ratio		Subs/employee					12,770				17,474				36.8	%