Report Financial XL Q1 2009

PT EXCELCOMINDO PRATAMA Tbk
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2006, 2007 AND 2008; AND

31 MARCH 2008 AND 2009
PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

AS AT 31 DECEMBER 2006, 2007 AND 2008;
AND AS AT 31 MARCH 200 8 AND 2009
(Expressed in millions of Rupiah, except par value per share)
Notes 31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
CURRENT ASSETS
Cash and cash equivalents 2a, 2c,3,22b 587,176 805,769 1,170,203 610,327 591,842
Trade receivables - net of
allowance for doubtful accounts 2e
- Third parties 4 187,396 256,997 835,468 366,977 347,638
- Related parties 2c,22c 16,902 51,404 68,292 65,213 83,001
Other receivables
- Third parties 3,767 2,153 13,450 3,008 2,502
- Related parties 2c,22d 6 - 21,368 - 2
Inventories 2f 35,378 58,961 127,633 94,277 105,594
Prepaid taxes 2n,21a 185,535 283,891 754,860 374,244 816,627
Advances and prepayments 2c,5,22j 167,095 219,905 378,260 368,431 674,798
Derivative receivables 2l,24 - - 333,324 67,405 121,489
Other assets 2g,6 148 230 16,705 276 80,279
Total current assets 1,183,403 1,679,310 3,719,563 1,950,158 2,823,772
NON-CURRENT ASSETS
Fixed assets - net of accumulated
depreciation 2h,2m,7 10,462,010 15,810,223 23,179,767 17,458,147 24,062,337
Derivative receivables 2l,24 - 125,723 625,678 147,666 591,968
Other assets 2c,2i, 2g,6,22j 991,162 1,185,299 1,386,705 1,222,551 1,733,576
Total non-current assets 11,453,172 17,121,245 25,192,150 18,828,364 26,387,881
TOTAL ASSETS 12,636,575 18,800,555 28,911,713 20,778,522 29, 211,653
CURRENT LIABILITIES
Trade payables:
- Third parties 8 1,664,884 2,674,050 3,250,610 3,243,412 2,919,508
- Related parties 2c,22e 6,621 3,628 28,253 8,179 38,421
Taxes payable 2n,21b 46,220 96,035 100,887 75,501 12,462
Other payables and accruals
- Third parties 9 325,695 511,968 428,601 355,711 337,069
- Related parties 2c,22f - 4 - - -
Deferred revenue 2d 256,787 410,418 1,110,180 579,695 959,238
Derivative payables 2l,24 - - - - 3,011
Short-term loans 2j,10 - - 547,500 1,921,700 -
Current maturity of long-term loans 2j,11 - 40,000 730,548 400,000 1,528,783
Current maturity of long-term bonds 2k,12 - 3,283,434 - - -
Total current liabilities 2,300,207 7,019,537 6,196,579 6,584,198 5,798,492
NON-CURRENT LIABILITIES
Trade payables - third parties 8 282,170 295,803 296,944 232,049 413,152
Long-term loans 2j,11 - 2,526,370 14,563,676 4,619,910 15,434,405
Deferred tax liabilities 2n,21d 347,153 613,729 553,629 695,756 454,545
Long-term bonds 2k,12 5,345,185 3,814,082 2,879,248 3,765,662 2,960,317
Derivative payables 2l,24 42,155 - 36,828 23,992 65,497
Provision for employee benefits 2o,13a 38,511 66,228 76,912 72,232 83,416
Total non-current liabilities 6,055,174 7,316,212 18,407,237 9,409,601 19,411,332
EQUITY
Share capital - authorised capital
22,650,000,000 ordinary shares,
issued and fully paid capital
7,090,000,000 ordinary shares,
with par value of Rp 100 per share 14 709,000 709,000 709,000 709,000 709,000
Capital surplus 2k,14 2,691,684 2,691,684 2,691,684 2,691,684 2,691,684
Retained earnings
- Appropriated 16 - 100 200 100 200
- Unappropriated 880,510 1,064,022 907,013 1,383,939 600,945
Total equity 4,281,194 4,464,806 4,307,897 4,784,723 4,001,829
TOTAL LIABILITIES AND EQUITY 12,636,575 18,800,555 28,911,713 20,778,522 29, 211,653
The accompanying notes form an integral part of these consolidated financial statements.
Page 1
CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED 31 DECEMBER 2006, 2007 AND 2008;
AND THREE-MONTH PERIODS ENDED 31 MARCH 2008 AND 2009
(Expressed in millions of Rupiah, except earning/(loss) per share)
2006 2007 2008 2008 2009

Notes (1 year) (1 year) (1 year) (3 months) (3 months)
REVENUE
Gross revenue 6,466,057 8,364,711 12,155,991 2,654,485 2,925,867

Discount (688,400) (375,192) (94,784) (31,517) (23,664)
Interconnection and
telecommunications service
charges (1,095,982) (1,529,749) (2,296,381) (554,336) (498,347)
Revenue net of interconnection

and telecommunications service 2c,2d,18
charges 22g,22h,22i 4,681,675 6,459,770 9,764,826 2,068,632 2,403,856
OPERATING EXPENSES 2d
Depreciation expenses 2h,7 1,508,020 1,705,410 3,335,287 626,678 878,251
Infrastructure expenses 19 613,351 1,076,676 1,988,575 361,463 739,935
Sales commission and marketing
expenses 20, 22k 653,707 896,049 1,352,689 291,890 231,115
Salaries and employee 2c,2o,13
benefits 22l 494,408 573,907 722,515 163,831 178,149
Supplies and overhead expenses 2c,22j 366,682 403,915 569,527 117,511 141,232
Others 2i 17,646 44,031 43,244 10,811 9,895
3,653,814 4,699,988 8,011,837 1,572,184 2,178,577
OPERATING INCOME 1,027,861 1,759,782 1,752,989 496,448 225,279
OTHER (EXPENSES)/INCOME
Interest expenses (416,203) (694,388) (1,122,294) (204,092) (383,115)
Interest income 51,668 50,749 27,649 7,766 16,820
Foreign exchange gain/(loss) - net 2l,2m 344,794 (204,362) (332,151) 208,569 (643,498)
Gain on finance lease transaction 2g, 6 - - - - 333,149
Others 21e (5,698) (393,749) (401,402) (42,999 ) 46,623
(25,439 ) (1,241,750) (1,828,198) (30,756 ) (630,021)
INCOME/(LOSS) BEFORE
INCOME TAX 1,002,422 518,032 (75,209) 465,692 (404,742)
INCOME TAX (EXPENSE)/

BENEFIT
- Current 2n,21c (2,031) (675) - (63,748) (410)
- Deferred 2n,21c (348,508) (266,576) 60,100 (82,027 ) 99,084
(350,539) (267,251) 60,100 (145,775) 98,674
NET INCOME/(LOSS) 651,883 250,781 (15,109) 319,917 (306,068)
EARNING/(LOSS) PER SHARE:
BASIC 2p,17 92 35 (2) 45 (43)
DILUTED 2p,17 92 35 (2) 45 (43)
Page 2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in millions of Rupiah)
Retained Earnings
Notes Share capital Capital surplus Appropriated Unappropriated Total
BALANCE AS AT 31 DECEMBER 2006,

2007 AND 2008
Balance as at 1 January 2006 709,000 2,691,684 - 228,627 3,629,311
Net income for the year - - - 651,883 651,883
Balance as at 31 December 2006 709,000 2,691,684 - 880,510 4,281,194
Net income for the year - - - 250,781 250,781
Dividends 2q,15 - - - (67,169) (67,169)
Appropriation to statutory reserve 16 - - 100 (100) -
Balance as at 31 December 2007 709,000 2,691,684 100 1,064,022 4,464,806
Net loss for the year - - - (15,109) (15,109)
Dividends 2q,15 - - - (141,800) (141,800)
Appropriation to statutory reserve 16 - - 100 (100) -
Balance as at 31 December 2008 709,000 2,691,684 200 907,013 4,307,897
BALANCE AS AT 31 MARCH 2008 AND

2009
Balance as at 31 December 2007 709,000 2,691,684 100 1,064,022 4,464,806
Net income for the period - - - 319,917 319,917
Balance as at 31 March 2008 709,000 2,691,684 100 1,383,939 4,784,723
Balance as at 31 December 2008 709,000 2,691,684 200 907,013 4,307,897
Net loss for the period - - - (306,068) (306,068)
Balance as at 31 March 2009 709,000 2,691,684 200 600,945 4,001,829
Page 3
CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in millions of Rupiah)
2006 2007 2008 2008 2009

Notes (1 year) (1 year) (1 year) (3 months) (3 months)
CASH FLOWS FROM

OPERATING ACTIVITIES
Receipts from operating revenues 5,902,480 8,039,046 12, 165,611 2,668,456 3,224,381
Payments for suppliers and
operating expenses (2,710,191) (3,602,846) (6,619,752) (1,646,070) (1,683,818)
Payments to employees (389,621) (460,158) (650,825) (201,460) (232,136)
Cash generated from operations 2,802,668 3,976,042 4,895,034 820,926 1,308,427

Interest income received 51,589 51,180 26,304 8,292 18,537
Refunds/(payments) of corporate
income tax - net 6,316 (41,149 ) (211,837) (50,577) (30,293 )
Net cash flows provided by

operating activities 2,860,573 3,986,073 4,709,501 778,641 1,296,671
CASH FLOWS FROM

INVESTING ACTIVITIES
Acquisition of fixed assets (4,027,420) (6,868,396) (11,381,712) (1,782,499) (2,172,503)
Additions of other assets (493,098) (290,686) (233,217) (21,262) (4 7,210)
Proceeds from sale of fixed assets
and insurance claims 7 2,616 5,094 100,898 3,842 4,775
Net cash flows used in

investing activities (4,517,902) (7,153,988) (11,514,031) (1,799,919) (2,214,938)
CASH FLOWS FROM

FINANCING ACTIVITIES
Payment of short-term loan interest (4,187) - (65,461) - (11,957)
Cash dividends paid 15 - (67,169) (141,800) - -
Repayment of long-term loans - - (400,000) - (167,339)
Payment of bond interest (351,180) (494,116) (444,513) (249,382) (85,063)
Payment of long-term loan interest - (51,425) (649,051) (67,812) (310,757)
Repayment of short-term loans (688,100) - (1,000,000) - (547,500)
Repayment of Excelcom bonds - - (4,459,970) (3,296,650) -
Proceeds from short-term loans - - 1,470,950 1,941,900 -
Proceeds from long-term loans - 2,503,455 12,953,122 2,500,000 1,463,976
Proceeds from long-term bonds 2,440,863 1,500,000 - - -
Bond issue costs 2k (30,598 ) (7,865) - - -
Net cash flows provided by

financing activities 1,366,798 3,382,880 7,263,277 828,056 341,360
Net (decrease)/increase in cash
and cash equivalents (290,531) 214,965 458,747 (193,222) (576,907)
Cash and cash equivalents

at beginning of year/period 880,485 587,176 805,769 805,769 1,170,203
Effect of exchange rate changes

on cash and cash equivalents (2,778) 3,628 (94,313) (2,2 20) (1,454)
Cash and cash equivalents

at end of year/period 3 587,176 805,769 1,170,203 610,327 591,842
Consisting of:
- Cash on hand 1,270 1,463 1,583 1,4 67 1,468
- Cash in bank 233,646 105,669 65,712 72,107 390,374
- Time deposits, mature within
three months 352,260 698,637 1,102,908 536,753 200,000
587,176 805,769 1,170,203 610,327 591,842
Non-cash transaction :
Transfer of assets under finance leases - - - - 363,195
Page 4
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

31 DECEMBER 2006, 2007 AND 2008; AND 31 MARCH 2008 AND 2009
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL
a. Establishment
PT Excelcomindo Pratama Tbk (“the Company”) was previously established under the name
PT Grahametropolitan Lestari and has its legal domicile in Jakarta. The Company is a limited
liability company under the laws of the Republic of Indonesia and was established under
Deed of Establishment No. 55, dated 6 October 1989, as amended by Deed No. 79, dated
17 January 1991. The preparation of both deeds was overseen by Rachmat Santoso, SH,
Notary in Jakarta. The deeds were approved by the Minister of Justice of the Republic of
Indonesia in the Ministry’s Decision Letter No. C2-515.HT.01.01.TH.91, dated 19 February
1991, registered in the District Court of South Jakarta under No.670/Not/1991/PN.JKT.SEL
and No.671/Not/1991/PN.JKT.SEL, dated 21 August 1991, and published in the State
Gazette of the Republic of Indonesia No. 90, Supplement No. 4070, dated 8 November 1991.
The Company’s Articles of Association have been amended for several times. Based on the
Shareholders’ Resolution dated 19 July 2005, as stated in Deed No. 127, dated 19 July 2005,
in relation to the Initial Public Offering of the Company, all of the Company’s Articles of
Association were entirely amended by Deed No. 8, dated 2 August 2005 and prepared before
Aulia Taufani, SH, substitute for Sutjipto, SH, Notary in Jakarta. This amendment was
accepted and approved by the Minister of Law and Human Rights of the Republic of
Indonesia as stated in his Letter No. C-21651.HT.01.04.TH.2005, dated 4 August 2005, and
No. C-21974.HT.01.04.TH.2005, dated 8 August 2005, registered by the Company Registrar
of the District of South Jakarta under registration No. 947/RUB.09.03/VIII/2005, dated
16 August 2005, and published in the State Gazette of the Republic of Indonesia No. 70,
dated 1 September 2005, Supplement No. 9425 Year 2005.
The latest amendment to the Company’s Article of Association, as stated on Deed No. 229
dated 29 July 2008, was to comply with the Indonesian Company Law No. 40 year 2007,
made before Sutjipto, SH, Notary in Jakarta. This amendment has been accepted and
approved by the Minister of Law and Human Rights of the Republic of Indonesia in his Letter
No. AHU. 83359.AH.01.02 year 2008, dated 10 November 2008.
b. Company’s public offerings
On 23 October 2003, the Company issued a bond known as Obligasi Excelcom I Year 2003
(the “Excelcom Bond”) with a nominal value of Rp 1.25 trillion (full amount) over a five -year
period and the bond was listed on the Indonesia Stock Exchange (formerly Surabaya Stock
Exchange). The bond was bought back on 21 July 2005.
On 27 January 2004, Excelcomindo Finance Company B.V., the Company’s wholly owned
subsidiary domiciled in Amsterdam, issued USD 350 million’s worth of five-year notes, which
are listed on Singapore Exchange Securities Trading, Ltd. The bond was bought back on
25 January 2008 (refer to Note 12a).
On 16 September 2005, the Company acquired an effective statement from the Indonesian
Capital Market Supervisory Agency (Bapepam) No. S-2531/PM/2005 in order to perform an
initial public stock offering of 1,427,500,000 of its shares with a par value of Rp 100 (full
amount) per share.
Page 5

1. GENERAL (continued)
b. Company’s public offerings (continued)
All of the Company’s issued shares were listed on the Indonesia Stock Exchange (formerly
the Jakarta Stock Exchange) on 29 September 2005 at the offering price of Rp 2,000 (full
amount) per share.
On 18 January 2006, Excelcomindo Finance Company B.V. issued a second USD bond
amounting to USD 250 million’s worth of seven-year notes which are listed on Singapore
Exchange Securities Trading, Ltd. On 30 June 2008, the Company bought back the Notes
amounting to USD 122,298,000 (refer to Note 12a).
On 26 April 2007, the Company issued a second IDR bond with a nominal amount of
Rp 1.5 trillion (full amount) for a five-year period and it was listed on the Indonesia Stock
Exchange (formerly the Surabaya Stock Exchange) (refer to Note 12b).
c. Investment licence
In accordance with its Articles of Association, the Company’s objective is to engage in

telecommunications services and/or telecommunications networks and/or multimedia
services. The Company commenced its commercial operations in 1996.
The Company obtained permission, or Ijin Usaha Tetap (“IUT”), to provide basic telephony
services based on Decree Letter No. 437/T/PERHUBUNGAN/2003 from the Investment
Coordination Board (“BKPM”), dated 20 November 2003. The licence is valid for 30 years
starting from October 1995.
The Company obtained approval from BKPM for the expansion of its investment into facilities
supply and the operation of telecommunications networks based on approval letter
No. 243/11/PMA/2003, dated 20 November 2003. BKPM approved the extension of the
project’s completion period in letter No. 1531/III/PMA/2005, dated 29 December 2005.
On 7 December 2004, the Company obtained approval from BKPM regarding the changes to
services and to the Company’s production area under approval letter No. 933/B.1/A.6/2004.
The changes were made in accordance with the rules on service area modification as
provided by Law No. 36 of 1999 on Telecommunications Services.
Furthermore, the Company obtained approval regarding the expansion of a foreign capital
investment based on an approval letter from BKPM No.948/T/TELEKOMUNIKASI/2006,
dated 1 December 2006 jo. No.06/P-IUT/2007 dated 26 January 2007 jo.
No. 1001/T/TELEKOMUNIKASI/2008 dated 26 September 2008. The expansion licence is
valid starting from the date the expansion project began commercial operation in June 2008
throughout the Company’s operational period.
Page 6

d. Operating licence
The Company is principally involved in the provision of basic telecommunications services,

internet access services (“ISP”), leased lines, Voice over Internet Protocol (“VoIP”) and
internet interconnection services (“NAP”).
The Company was granted several telecommunications licences by the Indonesian

Government. These licences are valid for an unlimited period as long as the Company
complies with prevailing laws and telecommunications regulations and fulfills the obligations
stated in those permits. For the ISP licence, an evaluation is performed yearly and an overall
evaluation is performed every 5 (five) years, while for the Licence to Operate a Cellular Mobile
Network, the overall evaluation is performed at every year end. For the Licence to Operate a
Fixed Closed Network, ITKP/VoIP, NAP overall evaluation is performed every 5 (five) years
through annual and quarterly ITKP/VoIP reports submitted to the Indonesian Directorate
General of Post and Telecommunications. The reports comprise factors such as operational
performance, revenue, universal service contribution and coverage areas.
Details of these licences are as follows:
Grant date/latest
Licence Licence No. Type of services
renewal date
GSM 900/DCS1800
Licence to Operate Cellular 100/KEP/M.KOMINFO
i.e. 2G, IMT-2000/3G and 11 October 2006
Mobile Network /10/2006
basic telephony services
Licence to Operate Internet Internet access services

197/Dirjen/2006 24 May 2006
Access Services (“ISP”) (Internet Service Provider)
Licence to Operate
KP.159 Year 2003 Fixed closed network 7 May 2003
a Fixed Closed Network
Licence to Operate Internet Internet Telephony
Telephony Services for Public 207/Dirjen/2004 Services for Public 29 June 2004
Interest (“ITKP”) Interest (“ITKP”)/VoIP
Licence to operate Internet Internet interconnection

17/Dirjen/2005 16 February 2005
Interconnection Services (“NAP”) services
Based on Decree No. 19/KEP/M.KOMINFO/2/2006 of the Minister of Communication and

Information, dated 14 February 2006, on the Determination of Successful Applicant for IMT-
2000 Cellular Mobile Network on 2.1 GHz Radio Frequency Band (KM.19 Year 2006), the
Company has been chosen as one of the winners of the 3G licence tender for the 2x5 MHz
block as stipulated in Decree No. 100/KEP/M.KOMINFO/10/2006 of the Minister of
Communication and Information, dated 11 October 2006, regarding its Operating Licence for
a Cellular Mobile Network.
Page 7

d. Operating licence (continued)
In accordance with KM.19 Year 2006 and Decree No.07/PER/M.KOMINFO/2/2006 of the

Minister of Communication and Information, the Company was obliged to pay an upfront fee
equalling twice the bid price, amounting to Rp 376 billion (full amount), not later than
30 (thirty) working days after the settlement date. The Company was also obliged to set up a
Performance Bond in the amount of Rp 20 billion (full amount) as well as paying the following
annual Spectrum Frequency Band Usage Fee:
BI Rate
Year of Payment Multiplying Index Annual BHP Frequency
(%)
Year 1 20% x HL
Year 2 R1 I1 = (1+R1) 40% x I1 x HL
Year 3 R2 I2 = I1(1+R2) 60% x I2 x HL
Year 4 R3 I3 = I2(1+R3) 100% x I3 x HL
Year 5 R4 I4 = I3(1+R4) 130% x I4 x HL
Year 6 R5 I5 = I4(1+R5) 130% x I5 x HL
Year 7 R6 I6 = I5(1+R6) 130% x I6 x HL
Year 8 R7 I7 = I6(1+R7) 130% x I7 x HL
Year 9 R8 I8 = I7(1+R8) 130% x I8 x HL
Year 10 R9 I9 = I8(1+R9) 130% x I9 x HL
Notes:
a. HL = Tender result per 2x5 MHz block (referring to the lowest winner bid price of
Rp 160 billion, full amount).
b. Ri = Average BI Rate for the preceding year.
c. Multiplying Index is the index which is utilised to conduct an adjustment of the Bid Price
every year.
Expenses related to the Company’s operations, i.e. the Telecommunications Service Fee, the
Universal Service Obligations, the Spectrum Frequency Usage Band Fee and the Annual
Spectrum Frequency Usage Fee for 3G Band for the years ended 31 December 2006, 2007
and 2008; and for the three-month periods ended 31 March 2008 and 2009, amounted to Rp
286,079; Rp 593,721; Rp 845,497; Rp 210,156 and Rp 307,543, respectively.
The Company has to comply with the regulations stipulated in the Decree of the Minister of
Communication and Information No. 100/KEP/M.KOMINFO/10/2006, dated 11 October 2006,
in applying for the Operating Licence for a Cellular Mobile Network.
Page 8

e. Board of Directors, Commissioners and Audit Committee
The composition of the Company’s Board of Directors and Board of Commissioners as at

31 March 2009 was based on the resolution of the Annual General Meeting of Shareholders
and Extraordinary General Meeting of Shareholders held on 19 March 2009, as stated in the
Deed of Resolution No 76, dated 19 March 2009, and prepared before Aulia Taufani, SH,
Notary in Jakarta as replacement of Sutjipto, SH, Notary in Jakarta. The composition of the
Company’s Board of Directors and Board of Commissioners as at 31 December 2006, 2007
and 2008 and 31 March 2008 and 2009 is as follows:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009

Board of Directors
President
Director: Hasnul Suhaimi Hasnul Suhaimi Hasnul Suhaimi Hasnul Suhaimi Hasnul Suhaimi
Directors: Joris de Fretes Joris de Fretes Joris de Fretes Joris de Fretes Joris de Fretes
Md. Nasir Md. Nasir Ahmad P. Nicanor V. Md. Nasir Ahmad P. Nicanor V.
Ahmad Santiago III Santiago III
P. Nicanor V. P. Nicanor V. Joy Wahjudi P. Nicanor V. Joy Wahjudi
Santiago III Santiago III Santiago III
Joy Wahjudi Joy Wahjudi Willem Lucas Joy Wahjudi Willem Lucas
Timmermans Timmermans
Willem Lucas Willem Lucas Dian Siswarini Willem Lucas Dian Siswarini
Timmermans Timmermans Timmermans
Hilmi bin Mohd Dian Siswarini Dian Siswarini

Yunus
Board of Commissioners
President
Commissioner: YBhg Tan Sri YBhg Tan Sri YBhg Tan Sri YBhg Tan Sri YBhg Tan Sri
Dato’ Dato’ Dato’ Dato’ Dato’
Ir.Muhammad Ir.Muhammad Ir.Muhammad Ir.Muhammad Ir,Muhammad
Radzi bin Haji Radzi bin Haji Radzi bin Haji Radzi bin Haji Radzi bin Haji
Mansor Mansor Mansor Mansor Mansor
Commissioners:YBhg Dato’ YBhg Dato’ YBhg Dato’ YBhg Dato’ YBhg Dato’
Yusof Annuar Yusof Annuar Jamaludin Yusof Annuar Jamaludin bin
bin Yaacob bin Yaacob bin Ibrahim bin Yaacob Ibrahim
YB Datuk Nur YB Datuk Nur YBhg Dato’ YB Datuk Nur YBhg Dato’
Jazlan bin Tan Jazlan bin Tan Yusof Annuar Jazlan bin Tan Yusof Annuar
Sri Mohamed Sri Mohamed bin Yaacob Sri Mohamed bin Yaacob
Rosli bin Man Rosli bin Man Abdul Farid bin Rosli bin Man Ahmad
Alias Abdulkarim
Mohd Julfar
YBhg Datuk YBhg Datuk Ahmad YBhg Datuk Gita Irawan

Bazlan bin Bazlan bin Abdulkarim Bazlan bin Wirjawan
Osman Osman Mohd Julfar Osman
Peter J. Chambers Peter J. Chambers Gita Irawan Peter J. Chambers
Wirjawan
Abdul Farid bin Abdul Farid bin Abdul Farid bin

Alias Alias Alias
Page 9

e. Board of Directors, Commissioners and Audit Committee (continued)

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Independent
Commissioners:Jend. (Purn) Jend. (Purn) Peter J. Chambers Jend. (Purn) Peter J. Chambers
Wismoyo Wismoyo Wismoyo
Arismunandar Arismunandar Arismunandar
Ir. Tjahjono Ir. Tjahjono Dr. Ir. Giri Suseno Ir. Tjahjono Dr. Ir. Giri Suseno
Soerjodibroto, Soerjodibroto, Hadihardjono Soerjodibroto, Hadihardjono
MBA MBA MBA
YBhg Dato’ YBhg Dato’ Elisa YBhg Dato’ Elisa
Mohamad Mohamad Lumbantoruan Mohamad Lumbantoruan
Norza bin Haji Norza bin Haji Norza bin Haji
Zakaria Zakaria Zakaria
The Company’s Board of Audit Committee was established on 28 February 2005. The
composition of the Board of Audit Committee as of 31 December 2006, 2007; and 31 March
2008 was as follows:
Chairman : Ir. Tjahjono Soerjodibroto, MBA

Members : Dr. Djoko Susanto, M.S.A
Heru Prasetyo
YBhg Dato’ Mohamad Norza bin Haji Zakaria
The composition of the Board of Audit Committee as at 31 December 2008 and 31 March
2009 is as follows:
Chairman : Peter J. Chambers

Members : Dr. Djoko Susanto, M.S.A
Heru Prasetyo
Elisa Lumbantoruan
The Company’s head office is located at grhaXL, Jalan Mega Kuningan Lot. E4-7 No.1
Kawasan Mega Kuningan, Jakarta 12950, Indonesia.
f. Subsidiaries
The Company has direct investments in subsidiaries as follows:

Percentage of Country of Year of
ownership domicile Business activities participations
Excel Phoneloan 818 B.V. 100% Netherlands Financing company 1997

GSM One (L) Ltd. 100% Malaysia Financing company 1996
GSM Two (L) Ltd. 100% Malaysia Financing company 1997
Excelcomindo Finance Company B.V. 100% Netherlands Financing company 2003
The subsidiaries’ total assets before elimination are as follows:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Excel Phoneloan 818 B.V. 20,384 13,102 14,916 12,821 15,767

GSM One (L) Ltd. - - - - -
GSM Two (L) Ltd. - - - - -
Excelcomindo Finance
Company B.V. 5,580,743 5,850,947 1,478,696 2,354,581 1,539,098
Page 10

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of PT Excelcomindo Pratama Tbk and its subsidiaries
(together, “the Group”) were prepared by the Board of Directors and completed on 11 May 2009.
Presented below are the significant accounting policies adopted for the preparation of the
consolidated financial statements of the Group, which conform to the accounting principles generally
accepted in Indonesia and the regulations imposed by the Indonesian Capital Market Supervisory
Agency and Financial Institution No. VIII.G.7 regarding Guidelines for the Preparation of Financial
Statements and No. SE-02/PM/2002 regarding Guidelines for the Preparation of Financial Statements
for Capital or Public Telecommunications Companies.
a. Basis for preparation of the consolidated financial statements
The consolidated financial statements, except for the consolidated statements of cash flows,
have been prepared on the historical cost concept and accrual basis, except for derivative
instruments (refer to Note 2l) which are stated at fair value.
The consolidated statements of cash flows present the sources and uses of cash and cash
equivalents according to operating, investing and financing activities. Short-term time deposits
with original maturities of three months or less are considered as cash equivalents. The
consolidated statements of cash flows are prepared using the direct method.
Figures in the consolidated financial statements are rounded to and stated in millions of
Rupiah unless we specify otherwise.
b. Principles of consolidation
The consolidated financial statements include the financial statements of subsidiaries

controlled by the Company and for which the Company directly or indirectly has ownership of
more than 50% of the voting rights or if there is an indication of control.
The subsidiaries are consolidated from the date on which effective control was transferred to
the Company and are no longer consolidated when the Company ceases to have effective
control.
The effects of all significant transactions and balances between companies within the Group
have been eliminated when preparing the consolidated financial statements.
The financial statements of subsidiaries domiciled outside Indonesia are translated into
Rupiah currency on the following basis:
- Monetary accounts are translated using the prevailing Bank of Indonesia middle rate as at
the balance sheet date as mentioned in Note 2m. Non-monetary accounts are translated
using the historical rate as at the transaction date.
Page 11

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
b. Principles of consolidation (continued)
- Statements of income accounts are translated using the average rate during the year/period
as follows (full amount):
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
United States Dollar (USD) 9,208.75 9,130.42 9,629.17 9,253.67 11,428.33

Euro (EUR) 11,512.00 12,472.76 14,205.35 13,762.66 15,106.61
Singapore Dollar (SGD) 5,776.07 6,050.74 6,819.98 6,516.59 7,637.31
Differences arising from the translation of balance sheets and statements of income of
subsidiaries are recognised in the current year’s/period’s consolidated statement of income on
the basis that the operations of the foreign subsidiaries formed an integral part of the
operations of the Company and, as a result, the transactions of the foreign subsidiaries have
been considered as if they had been carried out by the Company .
c. Related party transactions
The Company and its subsidiaries have transactions with related parties. The definition of
related parties used is in accordance with SFAS 7 “Related Party Disclosures”.
d. Recognition of revenues and expenses
Revenue from prepaid services is derived from the sale of starter pack and vouchers. Starter
packs consist of a SIM (Subscriber Identity Module) card and voucher. The revenue of SIM
card sales and any discount granted is recognised upon delivery to distributors or directly to
customers, excluding value-added taxes.
Revenue from sales of vouchers for prepaid services is not recognised at the time of sale.
When a voucher is sold, the full amount of airtime sold is credited, without deduction of any
commission, to the “Deferred Revenue” account.
When prepaid customers use the prepaid airtime or upon expiration of the voucher, the
amount used or expired is recognised as cellular telecommunications revenue in the
consolidated income statement.
Revenue for the use of the Company’s network by GSM customers, including charges for
airtime, local interconnection, domestic long-distance, international long -distance and
international roaming, is recognised based on applicable tariffs and the duration of successful
calls made through the network. Revenue is recognised at the time the service is rendered
based on the actual call duration and applicable tariffs.
For postpaid customers, non-voice revenue, such as monthly service charges and value-
added services, is recognised on a monthly basis upon billing.
Revenue from interconnection with other operators is recognised on the basis of actual
recorded call traffic.
Page 12

d. Recognition of revenues and expenses (continued)
Inbound roaming revenue from overseas telecommunications providers for calls made and
received by customers on the Company’s network is recognised at the time the call is
rendered based upon applicable tariffs.
Revenue from leased lines and rental of telecommunications tower and internet service
provider revenue is recognised on a monthly basis upon billing based on prices agreed with
customers. When unearned revenue is received, the amounts received are recorded as
deferred revenue and recognised as revenue when the services are provided.
Revenue from ITKP/VoIP services is recognised at the time when the service is rendered
based upon applicable tariffs.
Expenses are recognised on an accrual basis.
e. Trade receivables
Trade receivables are presented at their estimated recoverable amount after an allowance for
doubtful accounts. This allowance for doubtful accounts is made based on the management’s
evaluation of the collectibility of outstanding amounts as at each balance sheet date. Accounts
are written off in the period during which they are determined to be uncollectable.
f. Inventories
Inventories, mainly comprising vouchers and SIM cards, are valued at the lower of cost or net
realisable value. Cost is calculated using the moving-average method.
A provision for obsolete and slow-moving inventory is determined on the basis of the
estimated future sales of individual inventory items.
g. Leases
In 2007, the Indonesian Financial Accounting Standards Board issued SFAS 30 (Revised
2007), “Leases”, which constituted a change in accounting policy. The SFAS is effective for
the preparation of financial statements covering periods beginning on or after 1 January 2008 .
The application of SFAS 30 (Revised 2007) changes the guidance used to classify leases into
operating leases and capital leases. Under SFAS 30 (Revised 2007), the classification of
leases is based on the extent to which risks and rewards incidental to ownership of a leased
asset lie with the lessor or the lessee. Retrospective application of this standard is
encouraged but not required.
Page 13

g. Leases (continued)
In 2008, the Indonesian Financial Accounting Standards Board issued an Interpretation of
Statement of Financial Accounting Standard (ISFAS) 8, “Determining whether an
Arrangement contains a Lease and Further Explanation about Transitional Provisions of
SFAS 30 (Revised 2007)”. The interpretation provides guidance for determining whether an
arrangement is, or contains, a lease that should be accounted for in accordance with SFAS
30 (Revised 2007). In addition, the interpretation clarifies that, if SFAS 30 (Revised 2007) is
not applied retrospectively, the balance of any pre-existing finance lease is deemed to have
been properly determined by the lessor. With respect to the pre-existing operating leases,
companies are required to evaluate such leases in order to determine whether they should be
classified as finance lease under SFAS 30 (Revised 2007). If any pre-existing operating lease
is a finance lease under SFAS 30 (Revised 2007), companies may apply SFAS 30 (Revised
2007) retrospectively or prospectively. Lessees that elect to apply it retrospectively shall
apply SFAS 30 (Revised 2007) as if it had always been applied to all arrangements at the
inception of those arrangements. Meanwhile, lessees that elect to apply prospectively shall
apply SFAS 30 (Revised 2007) as of the beginning of the earliest period presented to all
arrangements existing at the beginning of the earliest period presented.
Application of SFAS 30 (Revised 2007) and ISFAS 8 by the Company does not have an
impact upon previously reported financial statement amounts.
1. Lessee
Leases in which a significant portion of the risks and rewards of ownership are retained by
the lessor are classified as operating leases. Payments made under operating leases are
charged to the consolidated income statement on a straight-line basis over the period of
the lease.
Leases of fixed assets whereby the Company has substantially all the risks and rewards
of ownership are classified as finance leases. Finance leases are capitalised at the lease’s
commencement at the lower of the fair value of the leased property and the present value
of the minimum lease payments.
Each lease payment is allocated between the liability and finance charges so as to
achieve a constant rate on the finance balance outstanding. The corresponding rental
obligations, net of finance charges, are included in other long-term payables. The interest
element of the finance cost is charged to the consolidated income statement over the
lease period so as to produce a constant periodic rate of interest on the remaining balance
of the liability for each period. The fixed asset acquired under finance leases is
depreciated over the shorter of the useful life of the asset and the lease term.
2. Lessor
A lease is an agreement whereby the lessor conveys to the lessee in return for a payment,
or series of payments, the right to use an asset for an agreed period of time.
When assets are leased out under a finance lease, the present value of the lease
payments is recognised as a receivable. The difference between the gross receivable and
the present value of the receivable is recognised as unearned finance income. Lease
income is recognised over the term of the lease using the net investment method, which
reflects a constant periodic rate of return.
Page 14

g. Leases (continued)
2. Lessor (continued)
When assets are leased out under an operating lease, the asset is included in the balance
sheet based on the nature of the asset. Lease income is recognised over the term of the
lease on a straight-line basis.
h. Fixed assets and depreciation
Fixed assets are stated at acquisition cost, which includes any applicable import taxes,
customs duties, freight costs, handling costs, storage costs, site preparation costs, installation
costs, internal labour costs, the initial estimate of the costs of dismantling and removing the
item and restoring the site on which it is located, less accumulated depreciation. Depreciation
is applied from the date the assets are put into service or when the assets are ready for
service, using the straight-line method over their estimated useful lives and results in the
following annual percentages of cost:
Buildings : 5%, 12.5%
Network equipment
- GSM tower : 6.25%
- Fibre optic : 10%, 12.5%
- Other network equipments : 10%, 12.5%, 20%, 25%, 50%
Leasehold improvements : 25%
Machinery and equipment : 25%
Furniture and fixtures : 25%
Support systems : 25%
Motor vehicles : 25%
Land is stated at cost and is not depreciated.
The Company evaluates its fixed assets for impairment whenever events and circumstances
indicate that the carrying amount of the assets may not be recoverable. When the carrying
amount of an asset exceeds its estimated recoverable amount, the asset is written down to its
estimated recoverable amount, which is determined based upon the greater of its net selling
price or value in use.
The accumulated costs of network equipment are initially capitalised as Assets Under
Construction. These costs are subsequently reclassified as fixed-asset accounts when the
assets are put into service.
Subsequent costs are included in the asset’s carrying amount and recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of replaced parts is written-off. The cost of upgrading software is capitalised
and the previously recorded balance is written off at the time the software upgrade is
performed.
All other repairs and maintenance are charged to the income statement during the financial
period in which they are incurred.
When assets are retired or otherwise disposed of, their carrying values and the related
accumulated depreciation are eliminated from the consolidated financial statements, and the
resulting gains and losses on the disposal of fixed assets are recognised in the respective
period’s statement of income.
Page 15

h. Fixed assets and depreciation (continued)
In 2007, the Indonesian Financial Accounting Standards Board issued SFAS 16 (Revised
2007), “Fixed Assets”. The SFAS is effective for the preparation of financial statements
covering periods beginning on or after 1 January 2008. Under SFAS 16 (Revised 2007),
companies have to choose the cost model or revaluation model as their accounting policy in
measuring costs of acquisition. The Company has chosen the cost model. According to SFAS
16 (Revised 2007), the initial estimate of the costs of dismantling, removing a fixed asset and
restoring the site on which it is located shall be capitalised as acquisition cost. In 2008, the
Company recorded the estimated dismantlement and restoration costs of Base Transceiver
Stations (BTS) as part of acquisition cost. The amount of the provision is determined based
on the lease contracts; however, where contracts do not specify the amount of the obligation,
the Company uses its best estimate. The management conducts a regular review of the
estimation used.
Change in economic useful lives estimation
In order to better reflect the economic useful lives of certain assets, commencing on
1 January 2007, the Company changed the estimated useful lives of certain components of
fibre optics and other network equipment from eight years (12.5%) to ten years (10%); this
equipment will be depreciated over the remaining period of its new useful life. Commencing
on 1 January 2008, the Company changed the estimated useful lives of certain components of
network equipment from ten and eight years (10% and 12.5%) to four and five years (25%
and 20%); this equipment will be depreciated over the remaining period of its new useful life.
Management is of the opinion that the calculation on the effect of changing the estimated
useful lives on the current and future periods is not practical, therefore the calculation is not
presented in these consolidated financial statements.
i. Intangible assets
The 3G spectrum licence is recorded at historical cost (refer to note 1d). It has a finite useful
life and is carried at cost less accumulated amortisation. Amortisation is calculated using the
straight-line method over the estimated useful life of the asset (ten years). The amortisation
commences from the date when the assets are available for use and amortisation costs are
charged to operating expenses.
The accounting principles generally accepted in Indonesia do not provide clear and explicit
guidance on whether the commitment to pay annual fees over ten years as a consequence of
obtaining the 3G spectrum licence is a liability and whether the ten-year annual fees (biaya
hak penggunaan or BHP) are to be considered as part of the acquisition costs of the licence.
The management assesses that continuation of payment of annual fees will no longer be
required if the Company no longer uses the licence. The management considers the annual
payment as a usage fee based on its own interpretation of the licence conditions and written
confirmation from the Directorate General of Post and Telecommunications. These annual
fees are therefore not considered as part of the acquisition cost for obtaining the licence.
If in future, the regulations and conditions with regard to payment of the annual fees are
changed with the consequence that payment of remaining outstanding annual fees cannot be
avoided upon the Company returning the licence, the Company will recognise the fair value of
annual fees as an intangible asset and the corresponding liability at the present value of the
remaining annual fees at that point in time.
Page 16

j. Loans
Loans are initially recognised at the amount of proceeds received, net of transaction costs
incurred. Loans are subsequently stated at any difference between proceeds received (net of
transaction costs incurred) and the redemption value. Transaction costs incurred as the result
of the loans issuance stated as amortised cost using effective interest method over the period
of borrowings.
k. Bond and share issue costs
Bond issue costs are directly deducted from the issue proceeds in the consolidated balance
sheets as a discount and are amortised using the straight-line method over the period of the
bonds.
Share issue costs are directly deducted from the capital surplus on the consolidated financial
statements.
l. Derivative financial instruments
In implementing its risk management policies, the Company periodically enters into derivative
contracts with external counterparties.
In order to qualify for hedge accounting, SFAS 55 “Accounting for Derivative Instruments and
Hedging Activities” sets out certain criteria, such as the documentation that should be created
at the inception of the hedge, and that the hedge should be effective.
Derivative instruments are measured at fair value and recognised as either assets or liabilities
on the balance sheet. Changes in the fair value of derivatives are recognised in earnings or as
part of equity, depending on the designated purpose of the derivatives and whether they
qualify for hedge accounting.
m. Foreign currency translation
Transactions denominated in foreign currencies are translated into Rupiah at the rates
prevailing as at the date of the transaction.
As at the balance sheet date, monetary assets and monetary liabilities denominated in foreign
currencies are translated into Rupiah using the Bank of Indonesia middle rate prevailing as at
that date. The exchange rates of the major foreign currencies used are as follows (full
amount):
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
United States Dollar (USD) 9,020.00 9,419.00 10,950.00 9,217.00 11,575.00

Euro (EUR) 11,858.15 13,759.76 15,432.40 14,558.72 15,327.06
Singapore Dollar (SGD) 5,878.73 6,502.38 7,607.36 6,683.36 7,617.41
Swiss Franc (CHF) 7,381.65 8,260.48 10,348.76 9,241.04 10,093.75
Australian Dollar (AUD) 7,133.48 8,228.92 7,555.51 8,450.15 7,949.14
Realised and unrealised foreign exchange gains or losses arising from transactions in foreign
currency and from the translation of foreign currency monetary assets and liabilities are
recognised in the current year/period consolidated statements of income.
Page 17

m. Foreign currency translation (continued)
In 1997 and 1998, as permitted under the Interpretation of Statement of Financial Accounting
Standard (ISFAS) No. 4 “Interpretation of Paragraph 20 of Statement of Financial Accounting
Standard 10 on the Allowed Alternative Treatment for Exchange Difference”, certain foreign
exchange losses were capitalised into the cost of fixed assets in recognition of the severe
depreciation in the value of the Rupiah against the US Dollar. Since 1 January 1999, the
conditions for “unusual depreciation” are no longer met and all foreign exchange differences in
1999 and subsequent years have been charged/(credited) to the consolidated statements of
income.
n. Taxation
Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted by the balance sheet date and are expected to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets relating to the carrying forward of unused tax losses are recognised to the
extent that it is probable that future taxable profit will be available against which the unused
tax losses can be utilised.
Amendments to taxation obligations are recorded when an assessment is received or, if

appealed against, when the results of the appeal are determined.
The Company, in certain situations provides provision based on review of the nature of
transactions that probable to give rise to tax underpayment assessments based on tax
assessments in previous periods.
o. Employee benefits
Short-term employee benefits
Short-term employee benefits are recognised when they accrue to the employees.
Long-term and post-employment benefits
Long-term and post-employment benefits such as retirement, severance, service payments

and other benefits are calculated based on Labour Law No. 13/2003 (“Law 13/2003”).
In relation to pension benefits, in April 2002 the Company entered into a defined contributions
pension plan organised by PT Asuransi Jiwa Manulife Indonesia. This programme is provided
to all permanent employees who were under 50 years of age at the commencement of the
programme in April 2002. Contributions to the plan are 10% of the net base salary, comprising
7% from the Company and 3% from the employee. Employees are entitled to benefits from
the pension plan, comprising pension fund contributions and accumulated interest, on
retirement, disability or death.
The regular contributions constitute net periodic costs for the year in which they are due and
as such are included in employee costs.
In accordance with Law 13/2003, the Company has further payment obligations if the benefits
provided by the existing plan does not adequately cover the obligations under Law 13/2003.
Page 18

o. Employee benefits (continued)
Long-term and post-employment benefits (continued)

The liabilities recognised in the consolidated balance sheets are the present values of the
defined benefit obligations as at the balance sheet date in accordance with Law 13/2003 or
the Company’s regulations (whichever is higher), less the fair value of plan assets, together
with adjustments for unrecognised actuarial gains or losses and past service costs.
The defined benefit obligation is calculated by an independent actuary using the projected unit
credit method. In calculating the long-term and post-employment benefits, the independent
actuary has considered the contribution made by the Company to PT Asuransi Jiwa Manulife
Indonesia.
The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows using the interest rates of government bonds (considering currently there
is no deep market for high-quality corporate bonds) that are denominated in Rupiah, in which
the benefits will be paid, and that have terms to maturity approximating to the terms of the
related pension liability.
Actuarial gains and losses arising from experience adjustments, changes in actuarial
assumptions and amendments to pension plans in excess of 10% of the fair value of plan
assets or 10% of the present value of the defined benefit obligations are charged or credited
to profit and loss over the employees’ expected average remaining service lives.
Past-service costs are recognised immediately in the consolidated statements of income,

unless the changes to the pension plan are conditional on the employees remaining in service
for a specified period of time (the vesting period). In this case, the past-service costs are
amortised on a straight-line basis over the vesting period.
The current service cost is recorded as an expense in the prevailing period.
p. Earning/loss per share
Basic earning/loss per share is calculated by dividing net income/loss by the weighted
average number of ordinary shares outstanding during the year.
Diluted earning/loss per share is calculated by dividing net income/loss by the weighted
average number of ordinary shares outstanding during the year, adjusted to assume
conversion of all potential dilutive ordinary shares.
q. Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the

consolidated financial statements in the period in which the dividends are approved by the
Company’s shareholders.
r. Use of estimates
The preparation of consolidated financial statements in conformity with accounting principles

generally accepted in Indonesia requires the use of estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as
at the date of the consolidated financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.
Page 19

3. CASH AND CASH EQUIVALENTS

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Cash on hand 1,270 1,463 1,583 1,467 1,468
Cash in bank
Rupiah
- Deutsche Bank AG 5,150 5,038 3,177 167 224,034
- PT Bank Permata Tbk 154 927 3,331 - 50,752
- JPMorgan Chase Bank, N.A. 1,247 46,541 28,684 15,590 21,942
- PT Bank Central Asia Tbk 193,403 28,979 18,837 20,110 13,710
- PT Bank Bukopin Tbk 126 539 1,411 841 4,009
- PT Bank Mandiri (Persero) Tbk 3,112 4,764 1,832 - 1,315
- PT Bank Negara Indonesia (Persero) Tbk 4,279 4,853 1,603 - 616
- PT Bank Danamon Indonesia Tbk 4,843 1,144 1,014 - 541
- Others (individual amount less than
Rp 3,000) 10,496 5,372 2,716 8,745 3,058
US Dollar
- JPMorgan Chase Bank, N.A. 10,021 7,458 3,033 26,592 70,344
- Standard Chartered Bank 51 54 74 - 53
- Deutsche Bank AG 764 - - - -
Rp 3,000) - - - 62 -
233,646 105,669 65,712 72,107 390,374
Time deposits (mature within three months)

Rupiah
- PT Bank OCBC NISP Tbk (formerly
PT Bank NISP Tbk) 28,500 - - - 200,000
- PT Bank UOB Indonesia - 100,000 - 150,000 -
- Deutsche Bank AG 1,300 67,000 53,000 113,800 -
- PT Bank Permata Tbk - - - 100,000 -
- PT Bank DBS Indonesia - 180,000 - 90,000 -
- PT Bank Central Asia Tbk - - 113,908 - -
- PT ANZ Panin Bank - - 60,000 - -
- PT Bank CIMB Niaga Tbk (formerly
PT Bank Niaga Tbk) 75,000 90,000 - - -
- PT Bank Mega Tbk - 45,000 - - -
- PT Bank Internasional Indonesia Tbk 40,000 - - - -
US Dollar
- PT Bank Mega Tbk - - 109,500 82,953 -
- PT Bank Chinatrust Indonesia - - 219,000 - -
- PT Bank CIMB Niaga Tbk (formerly
PT Bank Niaga Tbk) - - 109,500 - -
- PT ANZ Panin Bank - - 109,500 - -
- PT Bank Danamon Indonesia Tbk - - 109,500 - -
- PT Bank Permata Tbk - - 109,500 - -
- PT Bank DBS Indonesia - 122,447 54,750 - -
- Standard Chartered Bank - - 54,750 - -
- PT Bank OCBC NISP Tbk (formerly
PT Bank NISP Tbk) - 94,190 - - -
- The Bank of Tokyo-Mitsubishi UFJ, Ltd. 126,280 - - - -
- ABN AMRO Bank N.V. 45,100 - - - -
- PT Bank Rabobank International
Indonesia 36,080 - - - -
352,260 698,637 1,102,908 536,753 200,000
587,176 805,769 1,170,203 610,327 591,842
The annual interest rates of the above time deposits are as follows:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Rupiah deposit 3.00% - 15.00% 7.30% - 9.75% 7.00%-13.60% 8.00% - 8.25% 7.50%-13.25%
US Dollar deposit 4.15% - 5.40% 5.15% - 5.60% 1.00%-7.00% 4.50% - 5.25% 1.00%-7.00%
Page 20

4. TRADE RECEIVABLES - THIRD PARTIES

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Domestic partners
- PT Mora Telematika Indonesia 26,859 46,326 80,301 91,536 78,736
- PT Bakrie Telecom Tbk 3,619 1,873 88,601 33,885 62,501
- PT Sampoerna Telekomunikasi
Indonesia - 18 24,175 12,999 18,133
- PT Telekomunikasi Indonesia Tbk 8,328 4,992 12,217 1,039 12,997
- PT Natrindo Telepon Seluler 22 76 64,926 13,158 4,141
- PT Nettocyber Indonesia 4,562 10,098 4,513 10,596 3,953
- PT Indo Pratama Teleglobal 3,309 5,535 720 3,413 1,549
- PT Hutchison CP Telecommunications - 101 366,659 39,011 1,402
- PT Indosat Tbk 17,670 2,396 2,730 10,223 1,243
- PT Insan Sarana T elematika - 35 3,085 - 881
- PT Telekomunikasi Selular 3,184 - - - -
Rp 3,000, in USD and Rupiah) 182,197 268,079 258,564 223,300 247,207
249,750 339,529 906,491 439,160 432,743
International partners
- Shinetown Telecommunications Ltd. 5,816 6,792 13,520 5,436 13,092
- Digi Telecommunications Sdn Bhd 246 227 3,463 189 3,960
- Telstra Corporation Ltd. - Australia 3,260 6,040 558 6,048 1,089
- Unifone Pte. Ltd. 3,846 4,492 - - -
Rp 3,000) 9,294 18,922 14,618 51 12,342
22,462 36,473 32,159 11,724 30,483
272,212 376,002 938,650 450,884 463,226

Allowance for doubtful accounts (84,816) (119,005) (103,182) (83,907) (115,588)
187,396 256,997 835,468 366,977 347,638
The ageing analysis of trade receivables is as follows:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Current 151,553 152,246 695,206 211,828 126,238

Overdue 1 - 30 days 39,209 56,867 50,198 63,990 54,353
Overdue 31 - 60 days 8,401 23,317 46,340 41,230 32,055
Overdue > 61 days 73,049 143,572 146,906 133,836 250,580
272,212 376,002 938,650 450,884 463,226
Changes in the amounts of the allowance for doubtful accounts are detailed as follows:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009

Allowance for doubtful accounts
- beginning 17,897 84,816 119,005 119,005 103,182
Bad debt expenses 68,037 58,862 59,376 17,264 12,469
Doubtful debts written off (1,118) (24,673) (75,199 ) (52,362) (63)
Allowance for doubtful accounts - ending 84,816 119,005 103,182 83,907 115,588
Based on a review of the collectibility of the individual receivable accounts as at the balance sheet
date, management believes that the allowance for doubtful accounts is sufficient to cover possible
losses from non-collection of these accounts.
Page 21

5. ADVANCES AND PREPAYMENTS
This account represents advances to employees, related parties and third parties for the payment of
the Company’s operational expenses, such as utilities expenses, customs duties expenses and
prepaid expenses for rental, insurance and maintenance.
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Prepayments - current portion 158,388 215,412 356,889 359,378 662,538

Advances on operational expenses 8,707 4,493 21,371 9,053 12,260
167,095 219,905 378,260 368,431 674,798
For transactions with related parties please refer to Note 22.
6. OTHER ASSETS
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Prepayments - long-term portion 522,784 670,485 945,227 708,607 1,027,964

Downpayment to suppliers 87,837 167,877 135,595 178,574 77,291
Deferred charges 8,057 12,341 8,560 10,025 30,877
Restricted bank deposits and cash in bank 244 856 17,386 1,033 18,484
Others 9,581 10,742 12,993 11,255 13,011
628,503 862,301 1,119,761 909,494 1,167,627
Lease receivable - - - - 681,827

Unearned finance lease income - - - - (309,353)
- - - - 372,474
Intangible assets - 3G licence:

Acquisition cost 376,000 376,000 376,000 376,000 376,000
Accumulated amortisation (13,193 ) (52,772) (92,351 ) (62,667 ) (102,246)
362,807 323,228 283,649 313,333 273,754
991,310 1,185,529 1,403,410 1,222,827 1,813,855

Deduct:
Restricted bank deposits and
cash in bank – current (148) (230) (16,705) (276) (17,785)
Lease receivable – current - - - - (62,494)
(148) (230) (16,705) (276) (80,279)
Other assets - non-current 991,162 1,185,299 1,386,705 1,222,551 1,733,576
Lease receivables are related to the lease of fiber optics cables transactions to PT Hutchison CP
Telecommunications and PT Mora Telematika Indonesia (refer to Note 27n). Details of the lease
receivables are as follows:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Not later than 1 year - - - - 99,269

Later than 1 year and not later
than 5 years - - - - 198,539
More than 5 years - - - - 384,019
- - - - 681,827
Unearned finance lease income - - - - (309,353)
Net investment in finance lease - - - - 372,474
As at respective balance sheet dates, management believes that there was no indication of
impairment for intangible assets.
Page 22

7. FIXED ASSETS
31/12/2006
31/12/2005 Additions Disposals Transfers 31/12/2006
Cost
Land 101,083 15,690 - 253 117,026
Buildings 31,266 9,956 - 7,076 48,298
Network equipment 10,856,531 3,336,780 (340,437) 557,609 14,410,483
Leasehold improvements 98,454 12,640 (85) (2,390) 108,619
Machinery and equipment 210,040 41,657 (5,839) 8,463 254,321
Furniture and fixtures 14,657 7,501 (151) 786 22,793
Support systems 105,382 16,691 (19) 1,522 123,576
Motor vehicles 33,868 4,808 (807) - 37,869
11,451,281 3,445,723 (347,338) 573,319 15,122,985

Assets under construction 923,972 1,057,329 (1,505) (573,319) 1,406,477
12,375,253 4,503,052 (348,843) - 16,529,462
Accumulated depreciation
Buildings (11,385) (3,530) - 1,328 (13,587)
Network equipment (4,574,227) (1,431,109) 338,086 (624) (5,667,874)
Leasehold improvements (63,037) (14,511) 86 (1,328) (78,790)
Machinery and equipment (144,333) (35,523) 5,632 518 (173,706)
Furniture and fixtures (8,614) (3,591) 151 139 (11,915)
Support systems (75,044) (15,952) 14 (33) (91,015)
Motor vehicles (27,555) (3,804) 794 - (30,565)
(4,904,195) (1,508,020) 344,763 - (6,067,452)
Net book value 7,471,058 10,462,010
31/12/2007
Cost
Land 117,026 14,404 - 80 131,510
Buildings 48,298 3,475 - 1,472 53,245
Network equipment 14,410,483 4,440,405 (180,209) 736,899 19,407,578
Leasehold improvements 108,619 488 (1,403) (178) 107,526
Furniture and fixtures 22,793 7,974 (458) 2,994 33,303
Support systems 123,576 52,444 - 22,733 198,753
Motor vehicles 37,869 3,338 (388) 61 40,880
15,122,985 4,593,122 (190,156) 786,509 20,312,460

Assets under construction 1,406,477 2,494,559 (10,043) (786,509) 3,104,484
16,529,462 7,087,681 (200,199) - 23,416,944
Buildings (13,587) (4,939) - (746) (19,272)
Network equipment (5,667,874) (1,602,462) 156,585 - (7,113,751)
Leasehold improvements (78,790) (12,687) 1,205 710 (89,562)
Machinery and equipment (173,706) (47,930) 7,556 123 (213,957)
Furniture and fixtures (11,915) (5,898) 407 (77) (17,483)
Support systems (91,015) (27,311) - (10) (118,336)
Motor vehicles (30,565) (4,183) 388 - (34,360)
(6,067,452) (1,705,410) 166,141 - (7,606,721)
Net book value 10,462,010 15,810,223
Page 23

7. FIXED ASSETS (continued)

31/12/2008
Cost
Land 131,510 6,937 - - 138,447
Buildings 53,245 4,727 (169) 37,851 95,654
Network equipment 19,407,578 9,001,586 (374,477) 1,850,718 29,885,405
Leasehold improvements 107,526 5,142 (9,138) 4,488 108,018
Furniture and fixtures 33,303 12,019 (1,687) 18,736 62,371
Support systems 198,753 88,912 (25) 45,442 333,082
Motor vehicles 40,880 68 (12,942) 3,320 31,326
20,312,460 9,230,944 (399,496) 2,038,939 31,182,847

Assets under construction 3,104,484 1,613,999 (20,042) (2,038,939) 2,659,502
23,416,944 10,844,943 (419,538) - 33,842,349
Buildings (19,272) (10,155) 169 (4,750) (34,008)
Network equipment (7,113,751) (3,163,756) 255,165 8,584 (10,013,758)
Leasehold improvements (89,562) (11,493) 8,734 4,750 (87,571)
Machinery and equipment (213,957) (82,197) 1,045 (8,584) (303,693)
Furniture and fixtures (17,483) (11,944) 1,505 - (27,922)
Support systems (118,336) (52,052) 10 - (170,378)
Motor vehicles (34,360) (3,690) 12,798 - (25,252)
(7,606,721) (3,335,287) 279,426 - (10,662,582)
Net book value 15,810,223 23,179,767
31/03/2008
Cost
Land 131,510 458 - - 131,968
Buildings 53,245 - - 31,480 84,725
Network equipment 19,407,578 1,006,066 (56,280) 1,121,847 21,479,211
Leasehold improvements 107,526 - (779) (3,311) 103,436
Machinery and equipment 339,665 3,134 (46) 30,078 372,831
Furniture and fixtures 33,303 4 (326) 7,755 40,736
Support systems 198,753 990 - 8,652 208,395
Motor vehicles 40,880 - (12,524) - 28,356
20,312,460 1,010,652 (69,955) 1,196,501 22,449,658

Assets under construction 3,104,484 1,269,202 - (1,196,501) 3,177,185
23,416,944 2,279,854 (69,955) - 25,626,843
Buildings (19,272) (2,994) - (4,750) (27,016)
Network equipment (7,113,751) (593,121) 51,585 79 (7,655,208)
Leasehold improvements (89,562) (2,623) 411 4,750 (87,024)
Machinery and equipment (213,957) (16,364) 46 (79) (230,354)
Furniture and fixtures (17,483) (2,455) 281 - (19,657)
Support systems (118,336) (8,319) - - (126,655)
Motor vehicles (34,360) (802) 12,380 - (22,782)
(7,606,721) (626,678) 64,703 - (8,168,696)
Net book value 15,810,223 17,458,1 47
Page 24


31/03/2009
Cost
Land 138,447 3,058 - - 141,505
Buildings 95,654 3,341 - 48,254 147,249
Network equipment 29,885,405 281,185 (218,827) 1,526,482 31,474,245
Leasehold improvements 108,018 702 (1,538) 6,387 113,569
Machinery and equipment 528,544 36,706 (401) 48,997 613,846
Furniture and fixtures 62,371 2,548 (175) 14,557 79,301
Support systems 333,082 769 - 21,731 355,582
Motor vehicles 31,326 - (15,486) 2,855 18,695
31,182,847 328,309 (236,427) 1,669,263 32,943,992

Assets under construction 2,659,502 1,438,799 (1,496) (1,669,263) 2,427,542
33,842,349 1,767,108 (237,923) - 35,371,534
Buildings (34,008) (3,912) - - (37,920)
Network equipment (10,013,758) (816,501) 214,188 - (10,616,071)
Leasehold improvements (87,571) (4,809) 1,405 - (90,975)
Machinery and equipment (303,693) (29,482) 381 - (332,794)
Furniture and fixtures (27,922) (5,060) 175 - (32,807)
Support systems (170,378) (17,507) - - (187,885)
Motor vehicles (25,252) (980) 15,487 - (10,745)
(10,662,582) (878,251) 231,636 - (11,309,197)
Net book value 23,179,767 24,062,337
The Company owns land located throughout Indonesia with Building Use Rights (Hak Guna
Bangunan or “HGB”) for periods of 20-30 years which will expire between 2012-2039.
As of 31 March 2009, there are 165 locations with a total book value of Rp 47,014 and for which HGB
certificates are in process.
The management believes that there will be no difficulty in renewing the land rights when they expire.
Assets under construction

Assets under construction consist of:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Network equipment 1,335,077 2,861,627 2,384,150 3,000,135 2,166,587

Non-network equipment 71,400 242,857 275,352 177,050 260,955
1,406,477 3,104,484 2,659,502 3,177,185 2,427,542
Assets under construction mainly represent new BTS equipment and other equipment which is still to
be installed or is currently being installed. When the equipment units are finally installed, their carrying
values are reclassified as fixed assets (network equipment).
The management believes that there are no significant obstacles to the completion of the assets
under construction mentioned above.
Page 25


The calculation of the loss on sale and write-off of fixed assets is as follows:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Cost 348,843 200,199 419,538 69,955 237,923

Accumulated depreciation (344,763) (166,141) (279,426) (64,703 ) (231,636)
Net book value 4,080 34,058 140,112 5,252 6,287

Proceeds from sale of fixed assets
and insurance claims (2,616) (5,094) (100,898) (3,842) (4,775)
Loss on sale and write-off of fixed assets 1,464 28,964 39,214 1,410 1,512
As at 31 March 2009, the fixed assets of the Company and its subsidiaries are insured by insurance
policies covering “property, all risks and business interruption” for USD 2,457,000,000 from a third
party, PT MAA General Assurance, which the management believes is adequate to cover possible
losses.
In 1997 and 1998, the Company capitalised foreign exchange losses into the cost of fixed assets
amounting to Rp 147,949 and Rp 492,751 respectively (refer to Note 2m). Included in the net book
value of the Company’s fixed assets as at 31 December 2006, 2007 and 2008; and 31 March 2008
and 2009 are the remaining balances of foreign exchange losses capitalised, amounting to Rp 5,541,
Rp 4,752 and Rp 4,010; Rp 4,555 and 3,825 respectively.
The Company’s ownership of one parcel of land in Yogyakarta has been claimed by an individual
since January 2007. The claim has been through a series of legal proceedings and as of the issue
date of the consolidated financial statements, the parties involved were still waiting for the Supreme
Court to rule on the case. The case does not affect the Company’s operations in Yogyakarta.
In relation to the signing of a Contact Management Services agreement on 3 November 2008 with
VADS Business Process Sdn. Bhd., a related party (refer to Note 22), certain fixed assets of the
Company related to a call centre activities will be sold to the same party through a purchase
agreement. Up to the issuance date of the consolidated financial statements, the due diligence
process is still on going and the purchase agreement has not been signed.
Page 26

8. TRADE PAYABLES - THIRD PARTIES

Trade payables mostly consist of payables for capital expenditure, payables for operational
expenditure and payables for interconnection charges and international roaming services.
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
PT Ericsson Indonesia 101,704 105,963 577,963 147,008 566,617

PT Huawei Tech Investment 46,315 99,651 242,120 131,077 353,797
Amdocs Software Solution Kft., - 294,281 186,044 257,547 235,566
PT Alita Praya Mitra 298,991 498,620 348,495 523,433 167,741
PT Datacom Diangraha 9,857 31,726 125,611 40,347 163,804
PT Alcatel Lucent Indonesia 21,562 81,581 98,886 127,510 155,782
PT Alcatel Lucent Submarine Networks - - 115,834 - 122,446
Ericsson AB (EAW) 120,339 3,251 42,454 5,992 77,386
Eservglobal SAS France - - 118 1,548 51,517
PT Graha Sumber Prima Elektronik 15,940 21,248 44,818 32,157 45,608
PT Industri Telekomunikasi 50,723 48,548 64,429 38,157 44,035
The Boston Consulting Group - 2,117 27,244 14,198 37,737
Huawei Tech Investment Co. Ltd. 33,100 143,372 28,508 129,638 30,136
Nokia Siemens Networks Gmbh & Co KG - 20,712 25,745 11,619 29,286
PT Maxima Cipta Integrasi 6,645 3,122 24,936 6,486 25,506
PT Inland Telematika International - - - - 25,465
PT Dentsu Indonesia Interadmar - 18,729 41,061 17,307 24,046
PT Telekomunikasi Indonesia Tbk - 9,085 3,083 - 23,742
PT Nokia Siemens Networks 22,065 38,833 18,298 45,450 21,726
PT Dunia Tehnik 11,611 8,240 21,872 13,408 19,250
PT Sun Microsystem Indonesia 7,092 8,659 4,7 10 21,811 16,773
PT MAC Sarana Djaya 17,511 9,082 18,382 19,710 15,359
PT Alphine Cool Utama - 3,422 14,540 4,670 14,053
PT Logica Information Technology 106 955 22,745 2,374 14,052
PT Saptakrida Karyamas 1,214 1,569 10,781 3,710 13,357
PT Datacraft Indonesia 4,234 2,279 11,468 5,615 11,630
PT Communication Cable Systems - - - 1,274 11,350
Bluefish Technologies Pte. Ltd. - - - 6,760 11,186
PT Massada Telekomunikasi 2,993 3,569 13,145 8,516 10,950
PT Kokoh Semesta 12,236 12,492 7,850 10,614 10,162
PT QDC Technologies 18,086 4,106 11,348 4,456 9,773
Sagem Orga (Singapore) Pte. Ltd. 4,988 - 22,454 9,954 9,484
PT Fastel Sarana Indonesia 2,621 7,021 12,524 2,728 8,412
PT Mostniaga Semesta - - 17,981 - 7,107
Xpon Card International (Thailand) - - - 20,689 6,926
PT Bukaka Teknik Utama 6,823 17,538 10,243 7,620 4,945
PT Sas International - 20,481 5,020 6,054 4,914
PT Indonusa Mora Prakarsa 3,045 10,454 5,065 9,167 4,449
PT Ciptakomunindo Pradipta 4,510 13,413 5,223 8,494 3,959
PT Indosat Tbk 4 502 1,576 12,997 3,656
PT Citramasjaya Teknikmandiri 1,032 16,160 3,832 12,670 2,921
PT Suryajaya Teknotama 10,360 61,970 6,400 23,611 1,147
PT Dawamiba Engineering 9,958 14,438 490 4,068 1,133
Siemens Network Gmbhn Co. KG.
(formerly Siemens AG) 72,925 1,363 1,120 958 1,112
PT Silkar National Ltd. 11,150 559 216 658 553
Comverse Network System Inc - - - 11,510 454
PT Surya Reksakom Yasatama - 64 3,945 18,922 6
PT Teletama Artha Mandiri - 5 12,142 2 2
PT Metrodata E-Bisnis 19,947 - 504 27,274 -
Oberthur Card Systems Asia Pte. Ltd . 6,393 3,391 - 23,275 -
PT Alim Ampuhjaya Steel - - 550 10,853 -
PT Sisindokom Lintasbuana 11,480 7,315 - 2,833 -
PT Inpurema Konsultama 22,401 1,493 - 1,033 -
Ericsson AB 348,249 378,172 224,347 560,532 -
Vodafone - - - 14,123 -
Others (individual amount less than
Rp 10,000, in USD and Rupiah) 608,844 940,302 1,061,434 1,053,044 911,642
1,947,054 2,969,853 3,547,554 3,475,461 3,332,660
Page 27

8. TRADE PAYABLES - THIRD PARTIES (continued)
Trade payables based on currency are as follows:

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Rupiah 669,638 735,569 1,065,767 1,101,641 964,270

Foreign currencies 1,277,416 2,234,284 2,481,787 2,373,820 2,368,390
1,947,054 2,969,853 3,547,554 3,475,461 3,332,660

Less: Current portion (1,664,884) (2,674,050) (3,250,610) (3,243,412) (2,919,508)
Non-current portion 282,170 295,803 296,944 232,049 413,152
9. OTHER PAYABLES AND ACCRUALS - THIRD PARTIES

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Interest payable 191,069 231,499 156,085 100,063 121,256

Accrued salaries and employee benefits 57,972 75,333 126,266 38,438 63,863
Accrued telecommunications service costs 61,928 147,565 46,177 170,387 58,686
Customer deposits 10,073 13,810 20,251 22,932 16,070
Others 4,653 43,761 79,822 23,891 77,194
325,695 511,968 428,601 355,711 337,069
10. SHORT-TERM LOANS

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Standard Chartered Bank - - - 1,000,000 -

The Hongkong and Shanghai Banking
Corporation Ltd - - - 460,850 -
ABN AMRO Bank N.V - - 547,500 460,850 -
- - 547,500 1,921,700 -
a. Standard Chartered Bank
On 22 January 2008, the Company made a drawdown on the credit facility from Standard
Chartered Bank amounting to Rp 1,000 billion (full amount), using the bridging loan facility which
was part of the credit agreement with Standard Chartered Bank (refer to Note 11d). This loan was
settled on 20 June 2008.
b. The Hongkong and Shanghai Banking Corporation Ltd (HSBC)
On 18 January 2008, the Company signed a credit facility agreement with HSBC amounting to
USD 50,000,000. The loan facility was to mature 1 (one) year from the first drawdown date which
has been amended since 8 August 2008 to 3 (three) years from the first drawdown date (refer to
Note 11h).
Page 28

10. SHORT-TERM LOANS (continued)
c. ABN AMRO Bank N.V
On 21 January 2008, the Company signed a credit facility agreement with ABN AMRO Bank N.V
amounting to USD 50,000,000. The loan was to mature one year from the first drawdown date,
which was then amended on 4 December 2008, to 22 July 2009. Interest was to be paid quarterly
at a floating rate of interest of three months’ London Interbank Offered Rate (LIBOR) plus a 1.20%
margin. Based on the latest amendment dated 4 December 2008, the floating interest rate was
changed to three months’ LIBOR plus a 1.80% margin for the period 23 January 2009 to 22 July
2009. The Company is required to comply with certain conditions, such as that the ownership of
Axiata Group Berhad (formerly Telekom Malaysia International Berhad) in the Company should not
be less than 51%.
The outstanding principal as of 31 December 2008 and 31 March 2008 amounted to USD
50,000,000 (equivalent to Rp 547.5 billion (full amount)) and USD 50,000,000 (equivalent to Rp
460.85 billion (full amount)), respectively. The credit facility was utilised for loan repayments and
working capital purposes. This loan was settled on 30 March 2009.
11. LONG-TERM LOANS
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03 /2009
PT Bank Mandiri (Persero) Tbk - 400,000 3,600,000 1,000,000 3,600,000

PT Bank Central Asia Tbk - - 3,000,000 1,200,000 3,000,000
Exportkreditnämnden - - 2,342,747 - 3,730,004
Standard Chartered Bank - 941,900 1,642,500 921,700 1,736,250
Syndicated loan facility - - 1,533,000 - 1,620,500
PT Bank DBS Indonesia - 470,950 700,000 1,160,850 700,000
PT Bank Mizuho Indonesia - 470,950 547,500 460,850 578,750
The Hongkong and Shanghai Banking
Corporation Ltd. - - 547,500 - 578,750
DBS Bank Ltd. - - 547,500 - 578,750
JPMorgan Chase Bank, N.A. - 282,570 328,500 276,510 347,250
PT Bank Sumitomo Mitsui Indonesia - - 300,000 - 300,000
PT ANZ Panin Bank - - 250,000 - 250,000
- 2,566,370 15,339,247 5,019,910 17,020,254

Unamortised debt issuance cost - - (45,023 ) - (57,066)
- 2,566,370 15,294,224 5,019,910 16,963,188

Less: current portion - (40,000) (730,548) (400,000) (1,528,783)
Long-term portion - 2,526,370 14,563,676 4,619,910 15,434,405
a. PT Bank Mandiri (Persero) Tbk
On 19 December 2007, the Company signed a Rp 4,000 billion (full amount) credit facility
agreement with PT Bank Mandiri (Persero) Tbk, 10% of which matures in four equal annual
installments commencing on first birthday from the signing date of the agreement, while the
remaining 60% matures on the fifth anniversary of the signing of the agreement. The loan bears a
floating rate of one month’s Jakarta Interbank Offered Rate (JIBOR) plus a 1.50% margin per
annum which becomes due monthly in arrears. On 25 September 2008, the credit facility was fully
drawn down.
Based on the loan agreement, the Company is required to comply with certain conditions, such as
the Company does not obtain new debt that will cause the Company’s Debt to EBITDA ratio to
exceed 4.5 to 1.0. The outstanding principal as of 31 December 2007 and 2008; 31 March 2008
and 2009 amounted to Rp 400 billion (full amount) and Rp 3,600 billion (full amount); Rp 1,000
billion (full amount) and Rp 3,600 billion (full amount), respectively.
Page 29

11. LONG-TERM LOANS (continued)
b. PT Bank Central Asia Tbk

On 26 September 2007, the Company signed a credit facility agreement with PT Bank Central Asia
Tbk amounting to Rp 1,000 billion (full amount). The maximum credit facility has been amended
several times. Based on the latest amendment dated 4 April 2008, the credit facility has been
increased to Rp 3,000 billion (full amount). The loan will mature three years from the last
drawdown date of each credit facility agreement. Based on the contract, the Company agreed to
pay a floating rate of interest at quarterly intervals of three months’ JIBOR plus 1.25% margin.
limitations on certain asset sales or transfers, the Company does not obtain new debt that will
cause the Company’s Debt to EBITDA ratio to exceed 4.5 to 1.0 and majority ownership of the
Company’s shares directly or indirectly by Axiata Group Berhad (formerly Telekom Malaysia
International Berhad). The outstanding principal as of 31 December 2008; 31 March 2008 and
2009 amounted to Rp 3,000 billion (full amount) and Rp 1,200 billion (full amount) and Rp 3,000
billion (full amount), respectively.
c. Exportkreditnämnden (EKN)
On 12 December 2008, the Company signed a USD 213,949,508 credit facility agreement with
EKN Buyer Credit Facility for payment of equipment supply from Ericsson, Swedia. ABN AMRO
Bank N.V., Stockholm and Standard Chartered Bank act as arranger. This credit facility will mature
periodically amounting to USD 15,282,107.71 every six months on 15 January and 15 July each
year until 15 July 2015.
Interest will be paid semi-annually at a floating rate of interest of six months’ LIBOR plus a 0.35%
margin and SEK Funding Cost.
On 23 March 2009, the Company signed a second credit facility agreement with EKN Buyer Credit
Facility amounting to USD 214,352,382 with ABN AMRO Bank N.V., Hongkong branch and
Standard Chartered Bank act as arranger. This credit facility consists of two facilities as follow:
 Facility A amounted to USD 123,579,208, which will mature periodically amounting USD
8,827,086.29 every six months on 1 April and 1 October each year until 1 October 2015.
Interest will be paid semi-annually at a floating rate of interest of six months’ LIBOR plus a
0.35% margin and SEK Funding Cost.
 Facility B amounted to USD 90,773,174, which will mature periodically amounting USD
6,483,798.14 every six months on 15 January and 15 July each year until 15 July 2016.
Interest will be paid semi-annually at a floating rate of Commercial Interest Reference Rate
(CIRR) plus a 0.30% margin.
The Company is required to comply with certain conditions, such as hedging, limitations on certain
asset sales or transfers, and the Company should maintain the Company’s Debt to EBITDA ratio
not to exceed 4.5 to 1.0 over the period of the borrowings.
The outstanding principal as of 31 December 2008 and 31 March 2009 amounted to

USD 213,949,508 (equivalent to Rp 2,342 billion (full amount)) and USD 322,246,608 (equivalent
to Rp 3,730 billion (full amount)), respectively.
Page 30

d. Standard Chartered Bank
On 8 January 2007, the Company entered into a USD 50,000,000 credit agreement with Standard
Chartered Bank, maturing three years from the first drawdown date. The loan bears a floating
interest rate of three months’ LIBOR plus 1.05% margin per annum, which becomes due quarterly
in arrears.
The agreement was amended several times in 2007 and 2008 and based on the latest
amendments:
- The amount of the original credit facility was increased to USD 100,000,000, which will be
available up to 31 December 2007 with a floating interest rate of three months’ Singapore
Interbank Offered Rate (SIBOR) plus 1.05% per annum. The loan will mature 3 (three) years
from each drawdown date.
- A USD 110,000,000 or a maximum of Rp 1,000 billion (full amount) bridging loan facility was
added. The loan will mature nine months from each drawdown date, but not later than
31 December 2008 (refer to Note 10a), and bears a floating interest rate of monthly intervals
of Sertifikat Bank Indonesia (SBI) plus a 1.10% margin per annum.
- Another USD 50,000,000 credit facility was added. The loan will mature two years after the
drawdown date and bears a floating interest rate of three months’ SIBOR plus 2.00% per
annum, which becomes due quarterly in arrears.
Notwithstanding the above, there is a clause applicable in the event of disruption in the interbank
interest rate or any currency, whereby Standard Chartered Bank is allowed to apply its cost of
funds as a replacement for SIBOR. With effect from March 2009, the interest payment period is
changed gradually from quarterly to monthly.
that the Company must not obtain new debt that will cause the Company’s Debt to EBITDA ratio to
exceed 4.5 to 1.0, and that the ownership of Axiata Group Berhad (formerly Telekom Malaysia
International Berhad) in the Company should not be less than 51%.
The outstanding principal as of 31 December 2007 and 2008; 31 March 2008 and 2009 amounted
to USD 100,000,000 (equivalent to Rp 941.9 billion (full amount)) and USD 150,000,000
(equivalent to Rp 1,642.5 billion (full amount)); USD 100,000,000 (equivalent to Rp 921.7 billion
(full amount)) and USD 150,000,000 (equivalent to Rp 1,736.25 billion (full amount)), respectively.
e. Syndicated loan facility

On 6 November 2008, the Company signed a Syndicated Term Loan Facility Agreement
amounting to USD 140,000,000 with DBS Bank Ltd., Export Development Canada, The Bank of
Tokyo-Mitsubishi UFJ, Ltd. and Chinatrust Commercial Bank, Ltd., with PT Bank DBS Indonesia
acting as the Facility Agent. Based on this agreement, the Company agreed to pay a floating rate
of interest at the SIBOR rate plus a certain margin. The loan will mature three years from the
agreement date.
The Company is required to comply with certain conditions, such as that the Company should
maintain the Company’s Debt to EBITDA ratio not to exceed 4.5 to 1.0 and the EBITDA to net
interest expense ratio should not be less than 3.0 to 1.0.
The outstanding principal as of 31 December 2008 and 31 March 2009 amounted to

USD 140,000,000 (equivalent to Rp 1,533 billion (full amount)) and USD 140,000,000 (equivalent
to Rp Rp 1,620.5 billion (full amount)).
Page 31


f. PT Bank DBS Indonesia and DBS Bank Ltd.
On 19 April 2007, the Company signed a USD 50,000,000 credit facility agreement with PT Bank
DBS Indonesia, maturing three years after the first drawdown date. The loan bears a floating
interest rate of three months’ LIBOR plus 1.00% per annum, which becomes due quarterly in
arrears. With effect from March 2009, the interest payment period is changed gradually from
quarterly to monthly.
In November and December 2007, the agreement was amended by adding another credit facility
amounting to Rp 700 billion (full amount). This additional loan bears a floating interest rate of SBI
plus 1.10% per annum, which becomes due quarterly in arrears.
limitations on certain asset sales or transfers, the Company should not obtain new debt that will
cause the Company’s Debt to EBITDA ratio to exceed 4.5 to 1.0 and the ownership of Axiata
Group Berhad (formerly Telekom Malaysia International Berhad) in the Company should not be
less than 51%.
On 29 September 2008 and 27 October 2008, the Company signed Notice of Assignment with PT
Bank DBS Indonesia to assign and transfer the loan totalling to USD 50,000,000 to DBS Bank Ltd.,
Singapore, with effect from 29 September 2008 and 27 October 2008.
The outstanding principal and due to PT Bank DBS Indonesia as of 31 December 2007 and 2008;
31 March 2008 and 2009 amounted to USD 50,000,000 (equivalent to Rp 470.95 billion (full
amount)) and Rp 700 billion (full amount); Rp 700 billion (full amount) & USD 50,000,000
(equivalent to Rp 460.85 billion (full amount)) and Rp 700 billion (full amount), respectively. The
outstanding principal and due to DBS Bank Ltd., Singapore as of 31 December 2008 and 31 March
2009 amounted to USD 50,000,000 (equivalent to Rp 547.5 billion (full amount)) and USD
50,000,000 (equivalent to Rp 578.75 billion (full amount)).
g. PT Bank Mizuho Indonesia
On 15 January 2007, the Company entered into a credit agreement with PT Bank Mizuho
Indonesia amounting to USD 50,000,000. The loan will mature on 29 January 2010. The Company
agreed to pay a floating rate of interest at quarterly intervals of three months’ LIBOR plus a 0.95%
margin per annum. With effect from 31 October 2008, the interest payment period is changed from
quarterly to monthly.
The Company is required to comply with certain conditions which is the ownership of Axiata Group
Berhad (formerly Telekom Malaysia International Berhad) in the Company should not be less than
51%.
to USD 50,000,000 (equivalent to Rp 470.95 billion (full amount)) and USD 50,000,000 (equivalent
to Rp 547.5 billion (full amount)); USD 50,000,000 (equivalent to Rp Rp 460.85 billion (full
amount)) and USD 50,000,000 (equivalent to Rp Rp 578.75 billion (full amount)), respectively.
h. The Hongkong and Shanghai Banking Corporation Ltd. (HSBC)
On 18 January 2008, the Company signed a credit facility agreement with HSBC amounting to
USD 50,000,000. The loan facility was to mature 1 (one) year from the first drawdown date, which
has been amended since 8 August 2008 to 3 (three) years from the first drawdown date (refer to
Note 10b). Interest will be paid quarterly at a floating rate of interest of three months’ SIBOR plus a
1.75% margin which was then amended to SIBOR plus a 2.25% margin.
The Company is required to comply with certain conditions, such as limitations on asset sales or
transfers. It should also avoid obtaining new debt if this causes the Debt to EBITDA ratio to exceed
4.5 to 1.0, and the ownership of Axiata Group Berhad (formerly Telekom Malaysia International
Berhad) in the Company should not be less than 51%.
Page 32


h. The Hongkong and Shanghai Banking Corporation Ltd. (HSBC) (continued)
The outstanding principal as of 31 December 2008 and 31 March 2009 amounted to USD
50,000,000 (equivalent to Rp 547.5 billion (full amount)) and USD 50,000,000 (equivalent to Rp
578,75 billion (full amount)).
i. JPMorgan Chase Bank, N.A.
On 13 August 2007, the Company entered into a credit agreement with JPMorgan Chase Bank,
N.A. amounting to USD 30,000,000. The loan agreement will mature three years from each
drawdown date. Based on the agreement, the Company agreed to pay a floating rate of interest at
quarterly intervals of three months’ LIBOR plus 1.00% margin per annum. With effect from March
and April 2009, the interest payment period is changed gradually from quarterly to monthly.
The Company is required to comply with certain conditions, such as that the Company should not
obtain new debt if this causes the Debt to EBITDA ratio to exceed 4.5 to 1.0 and that the
ownership of Axiata Group Berhad (formerly Telekom Malaysia International Berhad) in the
Company should not be less than 51%.
to USD 30,000,000 (equivalent to Rp 282.57 billion (full amount)) and USD 30,000,000 (equivalent
to Rp 328.5 billion (full amount)); USD 30,000,000 (equivalent to Rp 276.51 billion (full amount))
and USD 30,000,000 (equivalent to Rp 347.25 billion (full amount)), respectively.
j. PT Bank Sumitomo Mitsui Indonesia

On 28 July 2008, the Company signed a credit facility agreement with PT Bank Sumitomo Mitsui
Indonesia amounting to Rp 300 billion (full amount). The loan will mature on 30 December 2011.
Based on the contract, the Company agreed to pay a floating rate of interest at monthly intervals of
the SBI rate plus 1.50% margin per annum.
The outstanding principal as of 31 December 2008 and 31 March 2009 amounted to Rp 300 billion
(full amount) each.
k. PT ANZ Panin Bank

On 22 September 2008, the Company entered into a credit agreement with PT ANZ Panin Bank
amounting to Rp 250 billion (full amount). The loan agreement will mature two years from the
drawdown date or not later than 3 December 2010. Based on the agreement, the Company agreed
to pay a floating rate of interest on a monthly basis at SBI rate plus 2.15% margin per annum.
The outstanding principal as of 31 December 2008 and 31 March 2009 amounted to Rp 250 billion
(full amount).
The above credit facilities were utilised for loan repayments, working capital, and acquisition of fixed
assets. As of 31 March 2009, the Company was in compliance with the convenants of its long-term
loans.
Page 33

12. LONG-TERM BONDS

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Excelcom Notes - USD 5,412,000 5,651,400 1,398,337 2,304,250 1,478,151
Excelcom Notes - IDR - 1,500,000 1,500,000 1,500,000 1,500,000
5,412,000 7,151,400 2,898,337 3,804,250 2,978,151
Unamortised discount (66,815 ) (53,884) (19,089 ) (38,588) (17,834)
5,345,185 7,097,516 2,879,248 3,765,662 2,960,317
Less: current portion - (3,283,434) - - -
Long-term portion 5,345,185 3,814,082 2,879,248 3,765,662 2,960,317
a. Excelcom Notes – USD
USD 350 million Notes

On 27 January 2004, the Company’s wholly-owned subsidiary domiciled in Amsterdam,
Excelcomindo Finance Company B.V., issued a bond amounting to USD 350,000,000 with an
offer price of 99.495% and a coupon of 8% valid for five year notes. These Notes are listed on the
Singapore Exchange Securities Trading, Ltd. The difference between the nominal principal and
the issue price was deferred as a bond discount and is being amortised over five years.
Interest is payable semi-annually on 27 January and 27 July of each year, commencing on
27 July 2004. Initially, the Notes will mature on 27 January 2009.
The Notes are unsecured senior obligations and are guaranteed by the Company on a senior
unsecured basis. The trustee for the Notes is the Bank of New York. On 1 December 2005 and 19
May 2006, the Notes were rated BB- and Ba3 by Standard and Poor’s Ratings Services and
Moody’s Investors Service, Inc., respectively. Since 18 October 2007, the Notes have been rated
Ba2 by Moody’s Investors Service, Inc.
The Company is required to comply with certain conditions, such as limitations on asset sales
and/or leaseback transactions, and the Consolidated Leverage Ratio not exceeding 3.5 to 1.0 on
or prior to 27 January 2005, and 3.0 to 1.0 thereafter.
On 5 August 2005, the Company and Excelcomindo Finance Company B.V. declared the
amendments of the Notes requirements as follows:
(a) Before the Company becomes a subsidiary of Telekom Malaysia Berhad, the Consolidated
Leverage Ratio must not exceed 3.5 to 1.0 on or prior to 27 January 2006, and 3.0 to 1.0
thereafter; and
(b) After the Company becomes a subsidiary of Telekom Malaysia Berhad, the Consolidated
Leverage Ratio must not exceed 5.0 to 1.0 on or prior to 27 January 2007, and 4.5 to 1.0
thereafter, but before 27 January 2008, and 4.0 to 1.0 thereafter.
On 25 January 2008, Excelcomindo Finance Company B.V. bought back the Notes at a price of
100% of the nominal value.
USD 250 million Notes
On 18 January 2006, the Company’s subsidiary, Excelcomindo Finance Company B.V., issued
the second bond, amounting to USD 250,000,000, with an offer price of 99.323% and a coupon of
7.125% valid for seven years. These Notes are listed on the Singapore Exchange Securities
Trading, Ltd. The difference between the nominal principal and the issue price was deferred as a
bond discount and is being amortised over seven years.
Interest is payable semi-annually on 18 January and 18 July of each year, commencing on

18 July 2006. The Notes will mature on 18 January 2013.
Page 34

12. LONG-TERM BONDS (continued)
a. Excelcom Notes – USD (continued)

USD 250 million Notes (continued)
The Notes are unsecured senior obligations and are guaranteed by the Company on a senior
unsecured basis. The trustee for the Notes is the Bank of New York.
On 19 May 2006, the notes were rated BB- and Ba3 by Standard and Poor’s Ratings Services
and Moody’s Investors Service, Inc., respectively. Since 18 October 200 7, the notes have been
rated Ba2 by Moody’s Investors Service, Inc.
The Company is required to comply with certain conditions, such as limitations on asset sales
and/or leaseback transactions, and the Consolidated Leverage Ratio not exceeding 5.0 to 1.0 on
or prior to 27 January 2007, and 4.5 to 1.0 thereafter.
On 2 June 2008, in connection with the planned sale and transfer of substantially all of the
wireless communication towers and certain related assets of the Company, Excelcomindo
Finance Company B.V. and the Company announced that they were soliciting consent from the
Notes holders to amend the indenture. In conjunction with the Consent Solicitation, Excelcomindo
Finance Company B.V. and the Company launched a tender offer to buy back for cash up to USD
150,000,000 (“the maximum tender amount”) of the aggregate principal amount of the Notes (the
“Offer”). In the event that the Offer is oversubscribed, tendered notes will be accepted on a pro-
rata basis only up to the maximum tender amount.
The Consent Solicitation and the Offer commenced on 2 June 2008 and expired on 27 June
2008. Notes holders who delivered consent but did not accept the Offer by 13 June 2008 are
eligible for a consent payment of USD 10 per USD 1,000 of the principal amount of the Notes.
Notes holders who delivered consent and accepted the Off er by 13 June 2008 are eligible for a
consent payment of USD 10 and consideration payment of USD 1,010 per USD 1,000 of the
principal amount. Notes holders who accept after 13 June 2008 but on or before 27 June 2008
are eligible to receive only the consideration payment.
As at the Offer expiration date, Notes holders of USD 122,298,000 have accepted the buyback
offer and Notes holders of USD 227,605,000 have delivered their consent. In relation to the
buyback, the outstanding Notes as at 31 March 2009 amounted to USD 127,702,000.
On 20 April 2009, the Company bought back part of the Notes amounted to USD 3,635,000 at
price of 88.24%-89.24% of the nominal value (refer to Note 31b).
b. Excelcom Notes – IDR
Rp 1.50 trillion Notes (full amount)
On 26 April 2007, the Company issued a second IDR bond with a nominal amount of
Rp 1.5 trillion (full amount) and a coupon rate of 10.35%. The Excelcom Bond is valid for a five
year period and listed on the Indonesia Stock Exchange (formerly the Surabaya Stock Exchange).
The interest is payable quarterly commencing on 26 July 2007. The Excelcom Bond matures on
26 April 2012. The Excelcom Bond is an unsecured senior obligation and is guaranteed by the
Company on a senior unsecured basis.
The Notes were rated idAA- by PT Pefindo and AA(idn) by FITCH Ratings when the Excelcom
Bond was issued and changed to idA+ and AA-(idn) on 11 March 2009, respectively.
Page 35

12. LONG-TERM BONDS (continued)
b. Excelcom Notes – IDR (continued)
Rp 1.50 trillion Notes (full amount) (continued)
The Company is required to comply with certain conditions, such as limitations on asset sales or
leaseback transactions, and the Company should not obtain new debt if this causes the debt to
EBITDA ratio to exceed 4.5 to 1.0.
As of 31 March 2009, the Company was in compliance with the covenants of its IDR and USD Notes.
13. PROVISION FOR EMPLOYEE BENEFITS AND EMPLOYEE COSTS
a. Provision for employee benefits

The movements of the provision for employee benefits recognised in the consolidated balance
sheets are as follows:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Beginning balance 30,543 38,511 66,228 66,228 76,912

Provision made during
the year/period 9,498 29,472 14,753 6,216 6,743
Amounts paid during
the year/period (1,530) (1,755) (4,069) (212) (239)
Ending balance 38,511 66,228 76,912 72,232 83,416
The provision for employee benefits recognised in the consolidated balance sheets is as
follows:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Present value of obligations 47,946 92,296 104,145 109,174 90,245

Unrecognised actuarial losses (16,010) (32,062) (32,122) (42,791) (11,573)
Unrecognised past service costs 6,575 5,994 4,889 5,849 4,744
Liability in the balance sheet 38,511 66,228 76,912 72,232 83,416
Estimations of actuarial obligations as at 31 December 2007 and 2008 ; 31 March 2008 and
2009 were based on the latest actuarial valuation prepared by PT Mercer Indonesia, an
independent actuary, as stated in its reports dated 25 January 2008 and 28 January 2009; 15
April 2009, respectively. Estimations of actuarial obligations as of 31 December 2006 were
based on the actuarial valuation prepared by PT Watson Wyatt Purbajaga, an independent
actuary, as stated in its report dated 26 January 2007.
The provision for employee benefits expenses charged to the consolidated statements of
income are as follows:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Current service costs 5,799 10,755 14,429 3,607 3,514

Interest expenses 3,845 6,772 9,385 2,346 2,986
Amortisation of unrecognised
actuarial loss 434 12,525 1,631 408 388
Amortisation of unrecognised
past service costs (580) (580) (580) (145) (145)
Curtailment - - (10,112 ) - -
Provision for employee
benefits expenses 9,498 29,472 14,753 6,216 6,743
Page 36

13. PROVISION FOR EMPLOYEE BENEFITS AND EMPLOYEE COSTS (continued)

a. Provision for employee benefits (continued)
The pension benefit obligation was determined using the “Projected Unit Credit” method with
the following assumptions:
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009

Discount rate 10.5% 10. 25% 12% 11.25% 13%
(per annum)
Salary 9% 10% 11% 11% 11%

increment rate
(per annum)
Rate of Indonesian Indonesian Indonesian Indonesian Indonesian

mortality Mortality Table Mortality Table Mortality Table Mortality Table Mortality Table
1999 (TMI’99) 1999 (TMI’99) 1999 (TMI’99) 1999 (TMI’99) 1999 (TMI’99)
Rate of 10% of TMI ‘99 10% of TMI ‘99 10% of TMI ‘99 10% of TMI ‘99 10% of TMI ‘99
disability
Rate of 10% per annum 10% per annum 10% per annum 10% per annum 10% per annum
resignation up to age 25 and up to age 25 and up to age 25 and up to age 25 and up to age 25 and
reducing linearly reducing linearly reducing linearly reducing linearly reducing linearly
up to 1% per up to 1% per up to 1% per up to 1% per up to 1% per
annum at age 46 annum at age 46 annum at age 46 annum at age 46 annum at age 46
; 1% per annum ; 1% per annum ; 1% per annum ; 1% per annum ; 1% per annum
for 46 - 55 years for 46 - 55 years for 46 - 55 years for 46 - 55 years for 46 - 55 years
Retirement 100% at normal 100% at normal 100% at normal 100% at normal 100% at normal
rate retirement age of retirement age of retirement age of retirement age of retirement age of
56 years 56 years 56 years 56 years 56 years
b. Employee numbers and costs

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Number of employees
(permanent employees) 2,042 2,136 2,097 2,138 2,044
Total employee costs:
- Salaries and allowances 508,794 561,434 706,479 156,589 170,343
- Payment to defined contribution
pension plan 11,885 13,995 16,091 4,013 4,264
- Provision for employee
benefits 9,498 29,472 14,753 6,216 6,743
Total employee costs 530,177 604,901 737,323 166,818 181,350
Internal labour cost capitalised

as part of the fixed assets
costs (35,769) (30,994) (14,808 ) (2,987) (3,201)
Salaries and employee benefits
(including outsource) 494,408 573,907 722,515 163,831 178,149
Page 37

14. SHARE CAPITAL AND CAPITAL SURPLUS

Share Capital
The authorised share capital as at 31 December 2006, 2007 and 2008; and 31 March 2008 and 2009
is 22,650,000,000 shares, with a par value of Rp 100 (full amount) per share. Issued and fully paid
share capital is 7,090,000,000 shares.
The composition of the Company’s shareholders as at 31 December 2006 was as follows:
Number of
shares Amount %
Indocel Holding Sdn. Bhd. (formerly

Nynex Indocel Holding Sdn.) 4,227,901,400 422,790 59.63
Khazanah Nasional Berhad 1,191,553,500 119,155 16.81
PT Rajawali Corpora (formerly
PT Telekomindo Primabhakti) 1,132,497,500 113,250 15.97
AIF (Indonesia) Ltd. 523,532,100 52,353 7.38
Public 14,515,500 1,452 0.21
7,090,000,000 709,000 100.00
As at 31 December 2006, the 14,515,500 shares owned by the public included those owned by the
directors of the Company, who held 24,500 shares.
Number of
shares Amount %

Emirates Telecommunications
Corporation (Etisalat)
International Indonesia Ltd. 1,132,497,500 113,250 15.97
Public 16,565,500 1,657 0.23
7,090,000,000 709,000 100.00
Number of
shares Amount %
Public 16,565,500 1,656 0.23
7,090,000,000 709,000 100.00
Page 38

14. SHARE CAPITAL AND CAPITAL SURPLUS (continued)
Share Capital (continued)
The composition of the Company’s shareholders as at 31 March 2008 was as follows:
Number of
shares Amount %

Public 16,565,500 1,657 0.23
7,090,000,000 709,000 100.00
As at 31 March 2008, the 16,565,500 shares owned by the public included those owned by the
The composition of the Company’s shareholders as at 31 March 2009 is as follows:
Number of
shares Amount %

Public 16,565,500 1,656 0.23
7,090,000,000 709,000 100.00
As at 31 March 2009, the 16,565,500 shares owned by the public included those owned by directors
of the Company, who held 468,000 shares.
The chronology of changes in the Company’s shareholders from 1 January 2006 to 31 March 2009 is
as follows:
a. In June 2006, AIF (Indonesia) Ltd. sold its 195,605,400 shares to Indocel Holding Sdn. Bhd.
Accordingly, Indocel Holding Sdn. Bhd.’s ownership became 59.67% as at 30 June 2006.
b. Indocel Holding Sdn. Bhd. committed to increase the Company’s liquidity on the Indonesia Stock
Exchange (formerly Jakarta Stock Exchange) by steadily releasing its shares to the public. As at
31 December 2006 Indocel Holding Sdn. Bhd. owned 59.63%.
c. In May 2007, PT Rajawali Corpora sold its entire portion of Company shares, totalling
1,132,497,500 ordinary shares, to Bella Sapphire Ventures Ltd. (an affiliated company of Rajawali
Group domiciled in Seychelles Islands). AIF (Indonesia) Ltd. also sold its entire portion of
Company shares, totalling 523,532,100 ordinary shares to Indocel Holding Sdn. Bhd. Accordingly,
Indocel Holding Sdn. Bhd.’s ownership increased to 67.01%.
Page 39

14. SHARE CAPITAL AND CAPITAL SURPLUS (continued)
Share Capital (continued)
d. During 2007, Indocel Holding Sdn. Bhd. steadily released some of its shares to the public. As at
31 December 2007 Indocel Holding Sdn. Bhd. owned 66.99%.
e. In December 2007, Bella Sapphire Ventures Ltd. sold its entire portion of Company shares,
totalling 1,132,497,500 ordinary shares, to Emirates Telecommunications Corporation (Etisalat)
International Indonesia Ltd. As at 31 December 2007 Emirates Telecommunications Corporation
(Etisalat) International Indonesia Ltd. owned 15.97%.
f. On 6 February 2008, Axiata Group Berhad (formerly Telekom Malaysia International Berhad) and
Indocel Holding Sdn. Bhd. (“Indocel”) entered into a Shares Sale and Purchase Agreement with
Khazanah Nasional Berhad (“Khazanah”) for the proposed acquisition by Indocel of all of
Khazanah’s equity interest in the Company.
g. On 25 April 2008, Khazanah Nasional Berhad sold its entire portion of Company shares, totalling
1,191,553,500 ordinary shares, to Indocel Holding Sdn. Bhd. Accordingly Indocel Holding Sdn.
Bhd.’s ownership increased to 83.80%.
h. On 25 April 2008, Telekom Malaysia Berhad and TM International Berhad completed the
demerger process in TM Group. Therefore Telekom Malaysia Berhad and TM International
Berhad become two separate entities.
The Company’s majority shareholder, Indocel Holding Sdn. Bhd., is a wholly owned subsidiary of
TM International (L) Ltd., which is a subsidiary of Axiata Group Berhad (formerly TM International
Berhad).
Capital Surplus
Capital surplus as at 31 December 2006, 2007 and 2008; and 31 March 2008 and 2009 is as follows:
Additional paid-in capital 2,712,250

Share issuance costs (44,815)
Exchange rate difference due to paid-in capital 24,249
2,691,684
Through the initial stock offering in September 2005, the Company received USD 278,213,143.70
and Rp 18,617,000,000 (full amount) for the offering of 1,427,500,000 shares, with a nominal value
amounting to Rp 100 (full amount) per share. As stated in the prospectus, the value of the share was
converted to Rupiah using the exchange rate USD 1.00 = Rp 10,195 (full amount).
The remaining Capital Surplus balance amounting to Rp 24,249 was the difference between the
exchange rate of Rupiah/USD on the date on which payment was received for the shares purchase,
and the exchange rate stated in the shareholders’ agreement and prospectus. Of the total amount, Rp
12,519 was from the initial public offering in 2005.
Page 40

15. DIVIDENDS
At the Annual General Meeting of Shareholders held on 26 April 2007, the shareholders agreed to
distribute a final cash dividend from the 2006 net income which amounted to Rp 67,169. The dividend
distributed amounted to Rp 9.47 (full amount) per share. The cash dividend was fully paid on 11 June
2007.
At the Annual General Meeting of Shareholders held on 4 April 2008, the shareholders agreed to
distribute a final cash dividend from the 2007 net income which amounted to Rp 141,800.
The dividend distributed amounted to Rp 20 (full amount) per share. The cash dividend was fully paid
on 16 May 2008.
16. APPROPRIATED RETAINED EARNINGS
Based on the Indonesian Company Law No. 1/1995, which has subsequently been superseeded by
the Indonesian Company Law No. 40/2007, the Company is required to set up a statutory reserve
amounting to at least 20% of the Company’s issued and paid up capital.
At the Annual General Meeting of Shareholders held on 26 April 2007 and 4 April 2008, the
shareholders approved an appropriation to the statutory reserve amounting to Rp 100 in each of
those years.
17. EARNING/(LOSS) PER SHARE

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Net income/(loss)attributable to the

shareholders 651,883 250,781 (15,109 ) 319,917 (306,068)
Weighted average number of ordinary

shares outstanding 7,090,000,000 7,090,000,000 7,090,000,000 7,090,000,000 7,090,000,000
Basic earning /(loss) per share

(full amount) 92 35 (2 ) 45 (43)
Diluted earning /(loss) per share

(full amount) 92 35 (2 ) 45 (43)
On 31 December 2006, 2007 and 2008; and 31 March 2008 and 2009, there were no dilutive potential
ordinary shares that would give rise to a dilution of net income/(loss) per share of the Company.
18. REVENUE
2006 2007 2008 2008 2009
(1 year) (1 year) (1 year) (3 months) (3 months)
Cellular Telecommunications service
Voice 2,747,183 3,866,302 6,622,610 1,387,624 1,502,798
Non-voice 2,239,392 2,632,500 3,140,732 722,132 780,291
Monthly service charge 921 1,921 4,382 1,127 970
4,987,496 6,500,723 9,767,724 2,110,883 2,284,059
Cellular Interconnection service

Domestic interconnection 866,260 886,995 1,036,861 252,758 225,263
International roaming 306,912 465,305 483,468 117,212 142,811
SMS interconnection 23,712 25,894 13,802 4,043 4,066
Others 4,902 5,408 3,221 834 791
1,201,786 1,383,602 1,537,352 374,847 372,931
Page 41

18. REVENUE (continued)

2006 2007 2008 2008 2009
Gross cellular revenue 6,189,282 7,884,325 11,305,076 2,485,730 2,656,990
Discount (688,088) (375,085) (94,781 ) (31,514 ) (23,664)
Gross cellular revenue net of discount 5,501,194 7,509,240 11,210,295 2,454,216 2,633,326
Interconnection charges (852,843) (1,120,307) (1,555,319) (407,192) (308,768)
Other cellular telecommunications charges (211,184) (338,828) (601,106) (123,797) (155,295)
Cellular revenue net of interconnection

charges and other cellular
telecommunications charges 4,437,167 6,050,105 9,053,870 1,923,227 2,169,263
Revenue from other telecommunications

services
Leased towers - - 276,669 18,118 141,610
Leased lines 238,688 408,710 478,473 127,774 106,546
Internet service provider 28,747 58,779 63,910 15,738 13,164
Others 9,340 12,897 31,863 7,125 7,557
Gross revenue from other

telecommunications services 276,775 480,386 850,915 168,755 268,877
Discount (312) (107) (3 ) (3) -
Gross revenue from other

telecommunications services
net of discount 276,463 480,279 850,912 168,752 268,877
Other telecommunications service costs (31,955 ) (70,614) (139,956) (23,347) (34,284)
Revenue from other telecommunications

services net of other
telecommunications service costs 244,508 409,665 710,956 145,405 234,593
Revenue net of interconnection and

telecommunications service charges 4,681,675 6,459,770 9,764,826 2,068,632 2,403,856
19. INFRASTRUCTURE EXPENSES

2006 2007 2008 2008 2009
Licence fee 199,801 471,835 660,377 171,634 262,008

Rental expense 133,183 187,886 519,121 90,293 206,837
Utilities expense 112,184 182,453 388,311 61,402 137,735
Repair and maintenance expense 168,183 234,502 302,488 35,500 124,385
Others - - 118,278 2,634 8,970
613,351 1,076,676 1,988,575 361,463 739,935
Page 42

20. SALES COMMISSION AND MARKETING EXPENSES

2006 2007 2008 2008 2009
Sales commission expense 321,424 463,027 697,489 155,709 135,525

Advertising and promotion expense 332,283 433,022 655,200 136,181 95,590
653,707 896,049 1,352,689 291,890 231,115
21. TAXATION
a. Prepaid taxes
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Value Added Tax - net 39,271 135,056 393,469 224,898 424,680

Refundable corporate income
taxes overpayment:
- Article 22 41,432 80,276 181,479 79,151 186,694
- Article 23/26 100,605 57,653 96,179 57,830 98,607
- Article 25 4,227 10,906 83,733 12,365 106,646
185,535 283,891 754,860 374,244 816,627
b. Taxes payable
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Corporate income tax payable:
- The Company - - - 14,497 -
- The Subsidiaries 3,657 4,423 5,142 4,328 5,815
Employee income tax (article 21) 3,609 3,571 4,660 10,632 3,822
Withholding tax on rent and other
services (article 23/26) 38,954 88,041 91,085 46,044 2,825
46,220 96,035 100,887 75,501 12,462
c. Corporate income tax (expense)/benefit

2006 2007 2008 2008 2009
Current (2,031) (675) - (63,748) (410)
Deferred (348,508) (266,576) 60,100 (82,027) 99,084
(350,539) (267,251) 60,100 (145,775) 98,674

Consisting of:
The Company:
- Current - - - (63,748) -
- Deferred (348,508) (266,576) 60,100 (82,027) 99,084
The Subsidiaries:
- Current (2,031) (675) - - (410)
(350,539) (267,251) 60,100 (145,775) 98,674
The reconciliation between the Company’s income tax (expense)/benefit and the theoretical tax
amount on the Company’s income/(loss) before income tax for the years ended 31 December
2006, 2007 and 2008; and three-month periods ended 31 March 2008 and 2009 is as follows:
2006 2007 2008 2008 2009

Consolidated income/(loss) before
income tax 1,002,422 518,032 (75,209) 465,692 (404,742)
Less: net income/(loss) before tax
- The Subsidiaries 5,512 3,175 (7,897) (8,784) 3,980
Page 43

21. TAXATION (continued)
c. Corporate income tax (expense)/benefit (continued)
2006 2007 2008 2008 2009

Income/(loss) before income tax
- The Company 996,910 514,857 (67,312 ) 474,476 (408,722)
(Expenses)/benefit tax calculated at

effective rates (299,073) (154,457) 20,194 (142,325) 114,442
Income subject to final tax - net 14,361 13,913 7,213 2,123 4,351
Non-deductible expenses (42,164) (123,500) (76,318) (5,573) (10,577)
Prior years’ tax adjustments (21,632) (2,532) (1,716) - 2,462
Changes in tax rate - - 110,727 - (11,594)
Income tax (expense)/benefit:

- The Company (348,508) (266,576) 60,100 (145,775) 99,084
- The Subsidiaries (2,031) (675) - - (410)
(350,539) (267,251) 60,100 (145,775) 98,674
The reconciliation between the Company’s income/(loss) before income tax as shown in the
consolidated financial statements and the estimated taxable income/(loss) for the years ended
31 December 2006, 2007 and 2008; and three-month periods ended 31 March 2008 and 2009 is
as follows:
2006 2007 2008 2008 2009
Income/(loss)before income tax 996,910 514,857 (67,312 ) 474,476 (408,722)
Temporary differences:
- Difference between commercial
and fiscal depreciation
and amortisation (514,608) (1,000,276) (646,440) (95,681) (638,879)
- Difference between commercial
and fiscal (loss)/gain
on disposal and
write-off assets (44,535) 3,757 11,656 816 (32,658)
- Allowance for bad debt expense 66,918 34,190 (15,847) (35,099) 12,396
- Provision for salaries and employee
benefits 7,969 87,983 52,233 (30,386) (56,684)
(484,256) (874,346) (598,398) (160,350) (715,825)
Permanent differences:
- Non-deductible expenses 140,547 411,666 254,392 18,578 37,776
- Income subject to final tax - net (47,871) (46,378) (24,043 ) (7,078) (15,539)
92,676 365,288 230,349 11,500 22,237
Tax income/(loss) 605,330 5,799 (435,361) 325,626 (1,102,310)
Accumulated tax losses (793,128) (127,316) (113,075) (113,075) (543,228)

Tax loss adjustment 2004 32,220 - - - -
Tax loss adjustment 2005 28,262 8,442 - - -
Tax loss adjustment 2006 - - 5,208 - -
Taxable (loss)/income (127,316) (113,075) (543,228) 212,551 (1,645,538)
Current tax expense - The Company - - - 63,748 -
Less: Prepaid corporate tax (60,461) (85,494) (213,152) (48,074) (22,660)
(Over)/under payment of
corporate income tax (60,461 ) (85,494) (213,152) 15,674 (22,660)
Page 44

c. Corporate income tax (expense)/benefit (continued)

In accordance with Indonesian Taxation Law, corporate income tax is calculated for the Company
and each of its subsidiaries in the understanding that they are separate legal entities
(consolidated financial statements are not permitted for computing corporate income tax).
In September 2008, the Indonesian government issued a new income tax regulation which will
become effective commencing 1 January 2009. With this regulation, the corporate income tax rate
will be reduced to a fixed rate of 28% in 2009 and 25% in 2010 onwards. On 31 December 2008
and 31 March 2009 the Company adjusted the deferred tax assets and liabilities to align with the
changes in the corporate income tax rate.
In these consolidated financial statements, the amount of tax income for the three-month periods
ended 31 March 2008 and 2009 is based on preliminary calculations. These amounts may differ
from tax (loss)/income reported in the corporate income tax returns. The amount of tax
(loss)/income for the years ended 31 December 2006, 2007 and 2008 was as reported in the
annual tax returns.
d. Deferred tax liabilities
Prior year
(Charged)/ adjustment
credited to credited to
consolidated consolidated
statement of statement of
31/12/2005 income income 31/12/2006
Difference between commercial

and fiscal depreciation and
amortisation (254,116) (167,743) (488) (422,347)
Employee stock allocation 3,000 - (3,000) -
Allowance for bad debt expense 5,370 20,075 - 25,445
Provision for salaries and
employee benefits 9,162 2,391 - 11,553
Tax losses carried forward 237,939 (181,599) (18,144) 38,196
1,355 (326,876) (21,632) (347,153)
Prior year
statement of statement of
31/12/2006 income income 31/12/2007

amortisation (422,347) (298,956) - (721,303)
Allowance for bad debt expense 25,445 10,257 - 35,702
employee benefits 11,553 26,395 - 37,948
Tax losses carried forward 38,196 (1,740) (2,532) 33,924
(347,153) (264,044) (2,532) (613,729)
Page 45

d. Deferred tax liabilities (continued)
Prior year
statement of statement of Changes
31/12/2007 income income in tax rate 31/12/2008

amortisation (721,303) (190,435) - 151,956 (759,782)
Allowance for bad debt expense 35,702 (4,754) - (5,158) 25,790
employee benefits 37,948 15,670 (152) (8,910) 44,556
Tax losses carried-forward 33,924 130,608 (1,564) (27,161 ) 135,807
(613,729) (48,911 ) (1,716) 110,727 (553,629)
(Charged)/credited
to consolidated
31/12/2007 statement of income 31/03/2008

amortisation (721,303) (28,457) (749,760)
Allowance for bad debt expense 35,702 (10,530) 25,172
employee benefits 37,948 (9,116) 28,832
Tax losses carried forward 33,924 (33,924) -
(613,729) (82,027) (695,756)
Prior year
statement of statement of Changes
31/12/2008 income income in tax rate 31/03/2009

amortisation (759,782) (188,030) 2,462 20,146 (925,204)
Allowance for bad debt expense 25,790 3,471 - (372) 28,889
employee benefits 44,556 (15,872) - 1,701 30,385
Tax losses carried-forward 135,807 308,647 - (33,069 ) 411,385
(553,629) 108,216 2,462 (11,594) (454,545)
As at 31 December 2006, 2007 and 2008; and 31 March 2009, the Company recognised deferred
tax assets from tax losses on the basis that the deferred tax assets will be utilised against
sufficient taxable profits in the foreseeable future. Under the taxation laws of Indonesia, the
accumulated tax losses are available to be carried forward and utilised against future years'
taxable profits for a period of up to five years.
The basis supporting recognition of the deferred tax assets is reviewed regularly by the
management.
Page 46

e. Tax assessments
2001 fiscal year
a. On 26 May 2003, the Director General of Taxation (DGT) issued tax assessments for
withholding Income Tax Articles 21, 23/26, and final Income Tax Article 4(2), which resulted in
underpayments totalling Rp 24,804. The Company paid Rp 9,776 of these underpayments on
25 June 2003 and 22 July 2003. The remaining balance was offset with the 2002 withholding
tax payments for article 23/26. Included in this tax assessment letter was an assessment for
withholding tax article 26 on international roaming amounting to Rp 855, which the Company
believes should not be subject to Income Tax Article 26. On 12 August 2003, the Company
submitted an objection letter to the DGT concerning this matter, which was rejected by the tax
office on 21 April 2004.
On 20 July 2004, the Company submitted an appeal letter to the Tax Court, which was
granted by the Tax Court in Decision Letter No. Put.05969/PP/M.VII/13/2005 dated 22 July
2005, and recorded in the 2005 consolidated statement of income under “other
income/(expense)”.
On 16 November 2005, the DGT submitted a reconsideration to the Supreme Court with
respect to the Tax Court’s Decision Letter No. Put.05969/PP/M.VII/13/2005,through
Reconsideration Memorandum No. S-407/PJ-4/2005. Up to the date of this report, the
Company has not received a response from the Supreme Court regarding the reconsideration
submitted by the DGT.
b. On 26 January 2004, the Company submitted an objection letter to the DGT for the
reconsideration of several tax assessment letters on VAT for the fiscal period January to
December 2001 totalling Rp 4,576, which have been rejected by the DGT. On 27 December
2004, 30 December 2004 and 17 January 2005, the Company submitted appeal letters to the
Tax Court and these were granted by the Tax Court through Decree No. 07165-
07169/PP/M.VII/16/2005 and 07200-07204/PP/M.VII/16/2005, dated 21 and 23 December
2005, respectively. The amount was recorded in the 2005 consolidated statement of income
under “other income/(expense)”.
On 8 June 2006, the DGT through the Tax Court submitted a reconsideration to the Supreme
Court with respect to the Tax Court’s Decision Letters No. Put.07166R/PP/M.VII/16/2006 and
Put.07200R/PP/M.VII/16/2006 regarding the VAT appeal decision for October and April of the
2001 fiscal year through Reconsideration Memorandum No. S-332/PJ-54/2006 and S-
333/PJ-54/2006. Up to the date of this report, the Company has not received a response
from the Supreme Court regarding the reconsideration submitted by the DGT.
2002 fiscal year
On 31 May 2005, the DGT issued tax assessment letters for corporate income tax, VAT, Income
Tax Article 21, Income Tax Articles 23/26, Final Income Tax Article 4(2) and a tax underpayment
letter for VAT which resulted in underpayments totalling Rp 8,768. The Company settled these
underpayments on 28 June 2005. On 30 August 2005, the Company submitted objection letters
for tax assessments of VAT and Income Tax Article 26 amounting to Rp 2,429 and Rp 1,045
respectively. Subsequently, on 2 February 2006, the DGT issued a Decision Letter to reject the
objection letters for these tax assessments of VAT and Income Tax Article 26.
Page 47

e. Tax assessments (continued)
2002 fiscal year (continued)
On 1 May 2006, the Company submitted appeal letters to the Tax Court for tax assessments of
VAT and Income Tax Article 26, which were granted by the Tax Court in Decision Letter No.
Put.09329/PP/M.VII/16/2006, dated 8 November 2006, and No. Put.09608/PP/M.VII/13/2006,
dated 20 December 2006. The compensated amount was recorded in the 2006 consolidated
statement of income under “other (expense)/income”.
On 5 March 2007, the DGT, through the Tax Court, submitted a consideration letter to the
Supreme Court with respect to the Tax Court’s Decision Letter No. Put.09329/PP/ M.VII/16/2006
regarding the VAT appeal decision for January - December 2002 through Reconsideration
Memorandum No. S-505/PJ.074/2007. Up to the date of this report, the Company has not
received a response from the Supreme Court regarding the reconsideration submitted by the
DGT.
On 17 April 2007, the DGT through the Tax Court, submitted a reconsideration letter to the
Supreme Court with respect to the Tax Court’s Decision Letter No. Put.09608/PP/ M.VII/13/2006
regarding the withholding Income Tax Article 26 appeal decision for the 2002 fiscal year through
Reconsideration Memorandum No. S-1171/PJ.07/2007. Up to the date of this report, the
Company has not received a response from the Supreme Court regarding the reconsideration
submitted by the DGT.
2003 fiscal year
The tax audit for the 2003 fiscal year has not been performed.
2004 fiscal year

On 26 June 2006, the DGT issued a tax assessment letter resulting in an overpayment of
corporate income tax and underpayments of Income Tax Article 21, Income Tax Articles 23/26,
Final Income Tax Article 4(2), and VAT. The DGT also issued a tax underpayment letter for VAT,
Final Income Tax Article 4(2) and Income Tax Article 26. Based on the tax assessment and tax
underpayment letters, the Company received overpayment of corporate income tax amounting to
Rp 30,916, after compensating with existing withholding tax payable.
On 20 September 2006, the Company submitted an objection letter to the tax assessment letter
for Income Tax Article 26 and VAT. On 14 August 2007, the DGT partially approved the
Company’s objection to the VAT assessment letter. The DGT has decided to reduc e the
underpayment of VAT by Rp 190.
On 27 August 2007, the DGT rejected the Company’s objection to the assessment for withholding
Income Tax Article 26 and increased the underpayment of withholding income Tax Article 26
amounting to Rp 34,251. The Company paid the tax underpayment on 14 August and 26
September 2007 and this was recorded in the 2007 consolidated statement of income under
“other (expense)/income”.
On 23 October 2007, the Company submitted an appeal letter to the Tax Court for tax
assessment of Income Tax Article 26. Up to the date of this report, the Company has not received
the Decree from the Tax Court regarding this appeal letter.
Page 48


e. Tax assessments (continued)
2005 fiscal year
On 18 June 2007, the DGT issued tax assessments for overpayment of Corporate Income Tax
and tax assessments for underpayment of Income Tax Articles 21, Income Tax Article 23/26, final
Income Tax Article 4(2), and VAT. The DGT also issued a tax underpayment letter on withholding
Income Tax Articles 26 and VAT. Total underpayment based on the tax assessments and tax
underpayment letters of Rp 88,812 was paid on 17 July 2007, after compensation for the
overpayment of Corporate Income Tax which amounted to Rp 44,341. On 3 and 14 September
2007, the Company submitted objection letters to the tax assessment letter for underpayment of
Income Tax Article 26 and VAT. On 26 February 2008, the DGT rejected the Company’s objection
letter for the assessment of withholding Tax Article 26. On 4 June 2008, the DGT partially
approved the Company’s objection to the VAT assessment letter. The DGT decided to reduce the
underpayment of VAT by Rp 63. On 14 May 2008, the Company submitted an appeal letter
against the objection decision letter of the Income Tax Article 26 assessment. Up to the issuance
date of the consolidated financial statements, the Company has not received the Decree from the
Tax Court regarding this appeal letter.
To reduce future increases in tax penalties, especially on interest payments to Excelcomindo
Finance Company B.V., the Company paid the withholding tax article 26 for interest payments
which matured in July 2007 amounting to Rp 147,417, and those which matured in January and
July 2008 amounting to Rp 76,665. The payment of the tax assessment letter for Income Tax
Article 26 above was recorded in the 2007 consolidated statement of income under “other
(expense)/income”.
2006 fiscal year

On 26 June 2008, the DGT issued a tax assessment for overpayment of Corporate Income Tax
amounting to Rp 60,461. On 24 July 2008, the Company received the refund for this overpayment
of Corporate Income Tax. On 17 September 2008, the Company submitted objection letters to the
DGT to make a correction to the interest expense applied to the overpayment of Corporate
Income Tax. On 22 September 2008, the DGT issued tax assessments for underpayment of
Income Tax Articles 21, Income Tax Article 23/26, final Income Tax Article 4(2), and VAT in the
amount of Rp 139,741. The DGT also issued a tax underpayment letter for Income Tax Article 26
and VAT for the amount of Rp 19,067. Later on 21 November 2008 the DGT issued a correction
to the underpayment of Income Tax Article 21, Income Tax Article 23, Income Tax Article 26, final
Income Tax Article 4(2), and VAT, which reduced the underpayment by Rp 932. On 16 and 18
December 2008 the Company submitted objection letters to the Tax Court for tax assessments on
Income Tax Article 23, Income Tax Article 26 and VAT. Up to the issuance date of the
consolidated financial statements, the Company has not received the Decree from the Tax Court
regarding these objection letters.
2007 fiscal year
The tax audit for the 2007 fiscal year is still being performed.
Under the taxation laws of Indonesia, the Company submits tax returns on the basis of self-
assessment. The Tax Authorities may assess or amend taxes within the Statute of Limitations, under
the prevailing regulations up to 2007.
Based on a new tax Law No. 28/2007 dated 17 July 2007 concerning the General Provision and
Procedure of Taxation effective as of 1 January 2008, the DGT may assess or amend tax liability
within 5 (five) years of the time the tax becomes due. For tax liabilities from 2001 fiscal year up to
2007 fiscal year which have not been settled, the tax assessment expires at the latest in the year
2013.
Page 49

22. RELATED PARTY INFORMATION

a. Nature of transactions and relationships with related parties
The nature of transactions and relationships with related parties is as follows:
Nature of the relationships
Related parties with related parties Nature of transactions
Telekom Malaysia Berhad Entity under common control ITKP/VoIP revenue, leased line revenue,
interconnection charges, other
telecommunications service costs and
reimbursement of expenses
Telekom Malaysia - Hongkong Entity under common control ITKP/VoIP revenue and leased line revenue
Telekom Malaysia (S) Pte., Ltd. Entity under common control ITKP/VoIP revenue, interconnection
charges and other telecommunications
service costs
Celcom (Malaysia) Berhad Entity under common control ITKP/VoIP revenue, international
roaming revenue, interconnection charges
and reimbursement of expenses
Dialog Telekom Ltd. Entity under common control International roaming revenue and
(formerly MTN Networks interconnection charges
(Pvt.) Ltd.)
Telekom Malaysia International Entity under common control International roaming revenue and
(Cambodia) Co. Ltd. interconnection charges
(formerly Cambodia Samart
Communications Co. Ltd.)
TM International (Bangladesh) Entity under common control International roaming revenue and
Ltd. interconnection charges
PT Rajawali Corpora Shareholders (until May 2007), Reimbursement of expenses and

(formerly PT Telekomindo one of PT Rajawali Corpora’s building rental
Primabhakti) Directors is the Company’s
Commissioner
MobileOne Ltd. Entity under common control International roaming revenue and
interconnection charges
Spice Communications Ltd. Entity under common control International roaming revenue and
Axiata Group Berhad Entity under common control Reimbursement of expenses
(formerly Telekom
Malaysia International Sdn.
Bhd.)
PT Bank CIMB Niaga, Tbk Entity under common control Leased line revenue, cash and
(formerly PT Bank Niaga cash equivalent
Tbk and Lippo Bank)
Emirates Telecommunications Afiliate of shareholder International roaming revenue and

Corporation interconnection charges
Etihad Etisalat Afilliate of shareholder International roaming revenue and

Thuraya Satellite Afilliate of shareholder International roaming revenue and
Telecommunications interconnection charges
Company
VADS Business Process Entity under common control Outsource contact centre service
Process Sdn. Bhd. expense
Page 50

22. RELATED PARTY INFORMATION (continued)
b. Cash and cash equivalents

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
PT Bank CIMB Niaga, Tbk (formerly
PT Bank Niaga Tbk and
Lippo Bank) - 1,120 109,851 268 174
(As a percentage of total cash and
cash equivalents) 0.00% 0.14% 9.39% 0.04% 0.03%
c. Trade receivables
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Telekom Malaysia Berhad 7,315 11,129 56,164 32,840 65,136
Celcom (Malaysia) Berhad 9,162 27,311 4,471 22,718 6,733
Lippo Bank - 10,972 3,079 6,910 5,555
MobileOne Ltd. - 1,555 1,633 1,345 3,785
Etihad Etisalat - - 123 - 777
Corporation - 289 406 - 725
Telekom Malaysia (S) Pte., Ltd. - - 2,173 1,096 105
Telekom Malaysia - Hongkong 379 65 77 286 81
Dialog Telekom Limited (formerly
MTN Networks (Pvt.) Ltd.) 46 26 91 18 66
Thuraya Satellite Telecommunications
Company - 57 72 - 38
TM International (Bangladesh) Ltd. - - 3 - -
16,902 51,404 68,292 65,213 83,001
(As a percentage of total trade
receivables - net) 8.27% 16.67% 7.56% 15.09% 18.90%
d. Other receivables
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Axiata Group Berhad
(formerly Telekom
Malaysia International Sdn.
Bhd.) - - 21,368 - 2
Celcom (Malaysia) Berhad 6 - - - -
6 - 21,368 - 2
(As a percentage of total other

receivable) 0.17% 0.00% 61.37% 0.00% 0.08%
e. Trade payables
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
VADS Business Process Sdn. Bhd. - - 4,895 - 11,644
Celcom (Malaysia) Berhad - - 4,641 584 9,103
Telekom Malaysia (S) Pte., Ltd. 68 232 452 1,900 682
Telekom Malaysia International
(Cambodia)Co. Ltd.
(formerly Cambodia Samart
Communications Co. Ltd.) 8 23 13 17 27
Spice Communications Ltd. - 54 28 85 14
Etihad Etisalat - 200 - - -
TM International (Bangladesh)
Ltd. 4 1 - - -
6,621 3,628 28,253 8,179 38,421
(As a percentage of total trade
payables) 0.34 % 0.12% 0.79% 0.25% 1.30%
Page 51

f. Other payables and accruals

31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Axiata Group Berhad
(formerly Telekom Malaysia
International Sdn. Bhd.) - 4 - - -
(As a percentage of total other
payables and accruals) 0.00% 0.00% 0.00% 0.00% 0.00%
g. Revenue
2006 2007 2008 2008 2009

Lippo Bank) - 14,075 31,298 8,026 8,234
MobileOne Ltd. - 17,038 21,520 4,790 5,325
Corporation - 134 3,227 456 826
Telekom Malaysia (S) Pte., Ltd. 965 1,246 5,974 1,061 694
Etihad Etisalat - 16 1,561 67 646
Dialog Telekom Ltd. (formerly
Thuraya Satellite Telecommunications
Company - 20 137 27 6
TM International (Bangladesh)
Ltd. 13 3 13 1 2
(Cambodia) Co. Ltd. (formerly
Cambodia Samart
Telekom Malaysia - Hongkong 4,988 2,506 436 436 -
41,710 159,151 207,006 60,599 57,682

(As a percentage of gross revenue
net of discount) 0.72% 1.99% 1.72% 2.31% 1.99%
h. Interconnection charges
2006 2007 2008 2008 2009

MobileOne Ltd. - 3,680 5,822 1,187 1,666
Telekom Malaysia (S) Pte., Ltd. 1,295 2,488 2,337 2,154 922
Corporation - 70 2,778 158 276
Etihad Etisalat - 224 1,689 91 223
(Cambodia) Co. Ltd.(formerly
Cambodia Samart
Dialog Telekom Ltd. (formerly
TM International (Bangladesh) Ltd. 20 12 12 4 4
10,212 12,598 33,638 6,762 13,322
(As a percentage of interconnection
charges) 1.20% 1.12% 2.16% 1.66% 4.31%
Page 52

i. Other telecommunications service costs

2006 2007 2008 2008 2009
Telekom Malaysia Berhad 528 17,914 21,853 1,930 5,368

Telekom Malaysia (S) Pte., Ltd. 34 - - - -
562 17,914 21,853 1,930 5,368

(As a percentage of other
telecommunications service costs) 1.76% 25.37% 15.61% 8.27% 15.66%
j. Rental expense
2006 2007 2008 2008 2009
PT Rajawali Corpora (formerly

PT Telekomindo Primabhakti) 5,930 4,618 4,618 1,155 1,155
(As a percentage of operating

expenses) 0.16% 0.10% 0.06% 0.07% 0,05%
On 15 December 2006, the Company made a rental prepayment for the period 1 November 2006
to 30 June 2012. As at 31 December 2006, 2007 and 2008; 31 March 2008 and 2009, the
balance of the rental prepayment amounted to Rp 25,401, Rp 20,783 and Rp 16,165; Rp 19,628
and Rp 15,010, respectively, consists of Rp 4,618 current portion and Rp 20,783, Rp 16,165 and
Rp 11,547; Rp 15,010 and Rp 10,392 non-current portion.
k. Service expense
2006 2007 2008 2008 2009

VADS Business Process Sdn. Bhd. - - 4,895 - 11,644
(As a percentage of operating

expense) 0.00% 0.00% 0.06% 0.00% 0.53%
l. Salaries and allowances for Board of Directors and Commissioners
2006 2007 2008 2008 2009

Salaries and allowances for Board of

Directors and Commissioners 28,775 19,727 35,072 17,429 12,481
(As a percentage of total employee

costs) 5.43% 3.26% 4.76% 10.45% 6.88%
The transactions with related parties are made under terms and conditions as though the transactions
were made with third parties on an arm’s length basis.
Page 53

23. COMMITMENTS
a. Capital commitments
The Company has made various purchase commitments related to the expansion of the network
against which the Company has made downpayments, as follows:
31/03/2009
(In million USD) (Equivalent billion Rp)
Purchase commitments 156 1,807

Downpayments (10) (115)
146 1,692
b. Operating lease commitments
In 1999 the Company entered into an office rental agreement denominated in Rupiah with
PT Caraka Citra Sekar Lestari (third party) for a term of 10 (ten) years. On 23 March 2007, the
Company amended the office rental agreement until 31 October 2020, with a total commitment as
follows:
31/03/2009
Payable within 1 (one) year 11,088

Payable within 2 (two) years and 5 (five) years 94,248
Payable more than 5 (five) years 116,424
221,760
The rental expenses related to this commitment for the years ended 31 December 2006, 2007
and 2008; and three-month periods ended 31 March 2008 and 2009 amounting to Rp 10,560, Rp
10,956, Rp 11,088; Rp 2,772 and Rp 2,772, respectively.
On 6 September 2007, the Company entered into an office rental agreement denominated in
Rupiah with PT Wiratara Prima (third party) for a term of 6 (six) years, with a total commitment as
follows:
Year 1-3 = Rp 10,049 per year

Year 4-6 = based on a market value with a minimum increase of 10% and maximum 15%
from prior rent fee.
Rental expenses related to this commitment for the years ended 31 December 2007 and 2008;
and the three-month periods ended 31 March 2008 and 2009 amounting to Rp 2,092 and
Rp 10,199; and Rp 2,512 and Rp 2,512, respectively.
c. 3G annual fees commitments
The Company has committed to pay annual fees within 10 (ten) years, as long as the Company
holds the 3G licence. The amount of the annual payment is based on the scheme of payment set
out in Regulation No. 07/PER/M.KOMINFO/2/2006 of the Minister of Communication and
Information (refer to Note 1d). No penalty will be imposed in the event of the Company returning
the licence.
Page 54

24. DERIVATIVES
31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Derivative receivables
Forward Foreign Currency Contracts - 105,584 758,286 201,158 486,245
Cross Currency Swap Contracts - 20,139 200,716 13,913 227,212
- 125,723 959,002 215,071 713,457
Less: current portion - - (333,324) (67,405) (121,489)
- 125,723 625,678 147,666 591,968
Derivative payables
Forward Foreign Currency Contracts 42,155 - - - -
Cross Currency Swap Contracts - - - 350 -
Interest Rate Swap Contracts - - 36,828 23,642 68,508
42,155 - 36,828 23,992 68,508
Less: current portion - - - - (3,011)
42,155 - 36,828 23,992 65,497
Below are details of forward foreign currency contracts the purpose of which is to hedge the payment
of long-term loans in USD:
Notional Derivative (payables)/receivables
amount
USD 31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Forward Foreign
Currency Contracts:
a. JPMorgan Securities
(S.E.A.) Ltd. 25,000,000 (15,376) 3,007 76,243 21,836 88,230
b. Standard Chartered
Bank 25,000,000 (14,614) 3,873 83,259 22,680 90,770
c. JPMorgan Securities
(S.E.A.) Ltd. 25,000,000 (6,804) 5,109 - - -
d. Standard Chartered
Bank 25,000,000 (5,361) 6,005 55,692 10,180 -
e. Standard Chartered
Bank 25,000,000 - 12,907 92,177 30,847 99,027
f. JPMorgan Securities
(S.E.A.) Ltd. 25,000,000 - 6,850 55,425 10,506 -
g. Standard Chartered
Bank 25,000,000 - 14,521 87,097 32,306 98,724
h. Standard Chartered
Bank 25,000,000 - 9,129 55,692 11,717 -
i. JPMorgan Securities
(S.E.A.) Ltd. 25,000,000 - 8,523 55,425 11,329 -
j. JPMorgan Securities
(S.E.A.) Ltd. 12,500,000 - 4,064 27,712 5,567 -
k. Standard Chartered
Bank 12,500,000 - 4,234 27,846 5,696 -
l. The Hongkong and
Shanghai Banking
Corporation Ltd. 12,500,000 - 5,602 27,685 5,920 -
m. JPMorgan Chase
Bank 12,500,000 - 8,975 42,687 10,255 47,596
n. Standard Chartered
Bank 12,500,000 - 5,848 27,846 6,490 -
o. JPMorgan Securities
(S.E.A.) Ltd. 12,500,000 - 6,937 43,500 15,829 49,090
p. The Royal Bank of
Scotland 15,300,000 - - - - 5,738
q. Standard Chartered
Bank 15,300,000 - - - - 7,070
Derivative receivables - 105,584 758,286 201,158 486,245
Derivative payables (42,155) - - - -
Page 55

24. DERIVATIVES (continued)

Premium
Strike rate
per
(full amount) Period
annum
Forward Foreign Currency
Contracts:
a. JPMorgan Securities (S.E.A.)
Ltd. 1 USD = Rp 9,000 7 December 2006 - 16 January 2013 3.49%
b. Standard Chartered Bank 1 USD = Rp 9,000 7 December 2006 - 16 January 2013 3.49%
c. JPMorgan Securities (S.E.A.)
Ltd. 1 USD = Rp 9,000 11 December 2006 - 23 January 2009 3.90%
d. Standard Chartered Bank 1 USD = Rp 9,000 11 December 2006 - 23 January 2009 3.90%
e. Standard Chartered Bank 1 USD = Rp 9,000 3 January 2007 - 16 January 2013 2.65%
f. JPMorgan Securities (S.E.A.)
Ltd. 1 USD = Rp 9,000 3 January 2007 - 23 January 2009 3.15%
g. Standard Chartered Bank 1 USD = Rp 9,000 4 January 2007 - 16 January 2013 2.50%
h. Standard Chartered Bank 1 USD = Rp 9,000 4 January 2007 - 23 January 2009 2.555%
i. JPMorgan Securities (S.E.A.)
Ltd. 1 USD = Rp 9,000 5 January 2007 - 23 January 2009 2.43%
j. JPMorgan Securities (S.E.A.)
Ltd. 1 USD = Rp 9,000 8 May 2007 - 23 January 2009 2. 60%
k. Standard Chartered Bank 1 USD = Rp 9,000 8 May 2007 - 23 January 2009 2.84%
l. The Hongkong and Shanghai
Banking Corporation Ltd. 1 USD = Rp 9,000 8 May 2007 - 23 January 2009 2.59%
m. JPMorgan Chase Bank 1 USD = Rp 9,000 8 May 2007 - 16 January 2013 2.80%
n. Standard Chartered Bank 1 USD = Rp 9,000 9 May 2007 - 23 January 2009 1.45%
o. JPMorgan Securities (S.E.A.)
Ltd. 1 USD = Rp 9,000 9 May 2007 - 16 January 2013 2.48%
p. The Royal Bank of Scotland 1 USD = Rp 11,505 9 January 2009 - 15 July 2009 -
q. Standard Chartered Bank 1 USD = Rp 12,129 9 January 2009 - 15 January 2010 -
The premium on the forward foreign currency contracts will be paid semi-annually.
On 6 April and 13 April 2009, the Company entered into a forward foreign currency contract with PT
Bank DBS Indonesia, The Royal Bank of Scotland and JPMorgan Chase Bank (refer to Note 31c &
31e).
From 18 April to 10 May 2007 the Company entered into cross currency swap contracts to hedge the
payment of the principal and interest of long-term loans in USD, as follows:
Notional Derivative receivables/(payables)
amount
USD 31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Cross Currency
Swap Contracts:
a. Standard Chartered
Bank 10,000,000 - 317 26,440 694 29,480
b. JPMorgan Chase
Bank 25,000,000 - 3,834 59,537 (350) 68,548
c. Standard Chartered
Bank 15,000,000 - 1,216 40,455 1,780 45,581
d. PT Bank DBS
Indonesia 15,000,000 - 8,432 38,712 5,479 43,469
e. Standard Chartered
Bank 12,500,000 - 6,340 35,572 5,960 40,134
Derivatives receivable - 20,139 200,716 13,913 227,212
Derivatives payable - - - (350) -
Page 56

a. On 18 April 2007, the Company entered into a cross currency swap contract with Standard
Chartered Bank. Based on the contract commencing on 18 April 2007, the Company would swap,
at the final exchange date (termination date) of 16 April 2010, a total of Rp 90.88 billion (full
amount) for USD 10,000,000. The Company will make quarterly payments in Rupiah every 18
January, 18 April, 18 July and 18 October up to the termination date, in the amount of
USD 10,000,000 times the fixed interest rate of 9.65% per annum with a strike rate of Rp 9,088
(full amount) per USD, and will receive payment in USD amounting to USD 10,000,000 times the
floating rate of interest at quarterly intervals of three months’ SIBOR plus 1.05%.
b. On 23 April 2007, the Company entered into a cross currency swap contract with JPMorgan
Chase Bank. Based on the contract commencing on 23 April 2007, the Company would swap, at
the final exchange date (termination date) of 29 January 2010, a total of Rp 225 billion (full
amount) for USD 25,000,000. The Company will make quarterly payments in Rupiah every
30 January, 30 April, 30 July and 30 October up to the termination date, amounting to
floating rate of interest at quarterly intervals of three months’ LIBOR plus 0.95%.
c. On 26 April 2007, the Company entered into a cross currency swap contract with Standard
Chartered Bank. Based on the contract commencing on 26 April 2007, the Company would swap,
at the final exchange date (termination date) of 26 April 2010, a total of Rp 135 billion (full amount)
for USD 15,000,000. The Company will make quarterly payments in Rupiah every 26 January, 26
April, 26 July and 26 October up to the termination date, amounting to USD 15,000,000 times the
fixed interest rate of 9.825% per annum with a strike rate of Rp 9,000 (full amount) per USD, and
will receive payment in USD amounting to USD 15,000,000 times the floating rate of interest at
quarterly intervals of three months’ LIBOR plus 1%.
d. On 9 May 2007, the Company entered into a cross currency swap contract with PT Bank DBS
Indonesia. Based on the contract commencing on 9 May 2007, the Company would swap, at the
final exchange date (termination date) of 26 April 2010, a total of Rp 135 billion (full amount) for
USD 15,000,000. The Company will make quarterly payments in Rupiah every 26 January,
26 April, 26 July and 26 October up to the termination date, amounting to USD 15,000,000 times
the fixed interest rate of 8.20% per annum with a strike rate of Rp 9,000 (full amount) per USD,
and will receive payment in USD amounting to USD 15,000,000 times the floating rate of interest
at quarterly intervals of 3 (three) months’ LIBOR plus 1%.
e. On 10 May 2007, the Company entered into a cross currency swap contract with Standard
Chartered Bank. Based on the contract commencing on 10 May 2007, the Company would swap,
at the final exchange date (termination date) of 29 January 2010, a total of Rp 112.5 billion (full
amount) for USD 12,500,000. The Company will make quarterly payments in Rupiah every 28
June, 28 September, 28 December and 28 March up to the termination date, in the amount of
floating rate of interest at quarterly intervals of three months’ LIBOR plus 0.95%.
Page 57

On 7 January 2008, the Company entered into interest rate swap contracts with Standard Chartered
Bank to hedge the payment of the quarterly interest of long-term loans in USD amounting to
USD 97,500,000. Based on the contracts commencing on 7 January 2008, the Company will pay
fixed interest as follows:
Fixed interest Maturity date of
Creditor Notional amount rate loan principal
a. JPMorgan Chase Bank USD 15,000,000 4.675% 30 August 2010
b. Standard Chartered Bank USD 30,000,000 4.73% 26 July 2010
c. Standard Chartered Bank USD 10,000,000 4.73% 9 August 2010
d. Standard Chartered Bank USD 10,000,000 4.73% 16 August 2010
e. PT Bank DBS Indonesia USD 20,000,000 4.635% 26 April 2010
f. Bank Mizuho Indonesia USD 12,500,000 4.575% 29 January 2010
On 9 February 2009, the Company entered into interest rate swap contracts with Standard Chartered
Bank to hedge the payment of EKN interest in USD where the principal is installed every six months.
Based on the contracts commencing on 11 February 2009, the Company will pay fixed interest as
follows:
Fixed interest Interest exchange periode
Creditor Notional amount rate
g. Standard Chartered Bank USD 198,667,400 2.575% 15 July 2009
Standard Chartered Bank USD 183,385,293 2.575% 15 January 2010
Standard Chartered Bank USD 168,103,185 2.575% 15 July 2010
Page 58

Below are the details of the interest rate swap contracts:
Notional Derivative payables

amount
USD 31/12/2006 31/12/2007 31/12/2008 31/03/2008 31/03/2009
Interest Rate Swap

Contracts:
a. JPMorgan Chase
Bank 15, 000,000 - - (6,341) (3,768) (6,416)
b. Standard Chartered
Bank 30,000,000 - - (11,655) (7,518) (13,067)
c. Standard Chartered
Bank 10,000,000 - - (4,131) (2,542) (4,287)
d. Standard Chartered
Bank 10,000,000 - - (4,236) (2,548) (4,308)
e. PT Bank DBS
Indonesia 20,000,000 - - (6,885) (4,601) (6,147)
f. Bank Mizuho
Indonesia 12,500,000 - - (3,580) (2,665) (3,011)
g. Standard Chartered
Indonesia 198,667,400 - - - - (31,272)
Derivative payables - - (36,828 ) (23,642) (68,508)
On 6 April 2009, the Company entered into interest rate swap contracts with Standard Chartered
Bank (refer to Note 31d).
The fair values on forward foreign currency contracts, cross currency swap contracts, and interest
rate swap contracts have been calculated using rates quoted by the Company’s bankers to terminate
the contracts at the balance sheet date.
25. CONTINGENCY
On 1 November and 14 December 2007, the Indonesia Business Competition Supervisory
Commission (“KPPU”) issued decisions regarding a preliminary and a second stage continued
investigation into the Company and seven other telecommunications companies based on allegations
of SMS price-fixing, which is a breach of Article 5 of the Anti-Monopoly Law (Law No.5/1999).
In the event that the Company is found liable for SMS price-fixing, the KPPU may order the Company
to pay fines up to Rp 25 billion (full amount) and require the Company to revise its SMS charges. In
the event that the KPPU's decision stipulates that the alleged price fixing has caused consumer loss,
the Company may also be exposed to consumer class action suits. Each of these decisions could
have a material adverse effect on the Company’s business, reputation and profitability.
On 18 June 2008, KPPU in one of its decisions assessed a penalty amounting to Rp 25 billion (full
amount) to the Company. On 9 July 2008, the Company submitted an appeal letter on the penalty
assessment to the South Jakarta District Court. Up to the issuance date of the consolidated financial
statements, the Company has not received any response from the South Jakarta District Court
regarding the submitted appeal letter
26. TARIFF SYSTEM
In January 2007, the government implemented Decree No.08/PER/M.KOMINFO/02/2006 of the

Minister of Communication and Information Technology regarding Interconnection. By this Decree, a
tariff system was implemented based on KM No. 09/PER/M.KOMINFO/04/2008 regarding Terms and
Conditions for Rate Determination of the Cellular Mobile Network Telecommunications Service, which
applies to all operators since 7 April 2008.
Page 59

26. TARIFF SYSTEM (continued)
Based on KM No. 09/PER/M.KOMINFO/04/2008 the tariff structure is as follows:
 Activation fees
 Monthly charges
 Usage charges
 Value added service charges
The calculation tariff formula for a postpaid and prepaid subscriber is based on the decree using the
folowing formula:
Retail tariff = Network Element Cost + Retail Activation Cost + Profit Margin
Notes:
a. Network element cost is calculated using the Long Run Incremental Cost (LRIC) Bottom Up
method as stated in Decree No.08/PER/M.KOMINFO/02/2006 of the Minister of Communication
and Information Technology regarding Interconnection.
b. Activation cost is calculated using retail activation cost. The cost is distributed to all subscribers
with the following formula:
Activation cost = Total activation cost

Projected subscribers number
Note:
Total activation cost = Total activation cost of basic telephony service
c. Profit margin is income used by the Company to calculate the tariff.
Interconnection Tariff
The Company entered into several bilateral agreements with other domestic telecommunications
operators regarding interconnection tariff sharing for each interconnection call. These agreements are
in accordance with the prevailing regulations.
Based on Decree No. 8/PER/M.KOMINFO/02/2006 of the Minister of Communication and Information

Technology dated 8 February 2006, the interconnection tariff will be charged based on cost, which is
offered in the Documents of Interconnection Offer from each operator and effective from the date the
Decree was signed. All operators have to apply a cost allocation principle in calculating the
interconnection cost as soon as this is approved by the government. During the transition period,
bilateral interconnection agreements are technically still valid as long as they are approved by both
parties and aligned with this Decree. Since 1 January 2007, the Regulation has applied to all
operators.
On 5 February 2008, Badan Regulasi Telekomunikasi Indonesia (BRTI) announced that the new
interconnection tariff must be implemented by 1 April 2008 at the latest.
Page 60

27. SIGNIFICANT AGREEMENTS WITH THIRD PARTIES
The Company entered into several significant contract agreements with third parties as follows:
a. General purchase agreement with Ericsson AB
On 11 July 2007, the Company signed a general purchase agreement with Ericsson AB for the
supply of network equipment and various network-related services. This agreement is valid until
31 December 2010 or earlier if terminated by either party in accordance with the agreement. This
contract sets out terms and conditions for the purchase of various products and services which
may be supplied by Ericsson AB from time to time, following the issue of one or more purchase
orders by the Company. This agreement replaces all other agreements signed previously.
Purchase orders issued for the year ended 31 December 2007 and 2008; and three-month
periods ended 31 March 2008 and 2009 amounted to USD 233,127,721 and USD 316,078,057;
USD 85,744,114; and USD 16,015,343, respectively.
b. General purchase and maintenance agreements with Siemens Network Gmbhn Co. KG.
(formerly Siemens AG)
On 28 October 1998, the Company signed a general purchase agreement and a maintenance
agreement with Siemens Network Gmbhn Co. KG. for the supply of network equipment and
various network-related services. The agreement has been amended several times and has been
extended until 31 December 2009. The contract sets out terms and conditions for the purchase of
various products and services which may be supplied by Siemens Network Gmbhn Co. KG. from
time to time, following the issue of one or more purchase orders by the Company. If payment of
any due sum is delayed, Siemens Network Gmbhn Co. KG. shall be entitled to receive interest at
the rate of LIBOR plus 3% of the amount unpaid during the period of the delay.
Purchase orders issued for the years ended 31 December 2006, 2007 and 2008; and three-month
periods ended 31 March 2008 and 2009 amounted to EUR 8,161,469; EUR 516,000; nil; EUR
33,672; and nil, respectively.
c. Maintenance agreement and installation agreement with PT Ericsson Indonesia
On 11 July 2007, the Company signed an installation agreement with PT Ericsson Indonesia for
the installation of the Company’s telecommunications network equipment. This agreement is valid
until the last purchase order or the date on which the agreement is terminated by notice by either
party in accordance with the terms of the agreement. This agreement replaces all other
agreements signed previously.
On 27 September 2007, the Company signed a maintenance agreement with PT Ericsson

Indonesia for the supply of maintenance services for the Company’s telecommunications network.
This agreement is valid until the last purchase order or the date on which the agreement is
terminated by notice by either party in accordance with the terms of the agreement. This
agreement replaces all other agreements signed previously.
Purchase orders issued for the years ended 31 December 2006, 2007 and 2008; and three-month
periods ended 31 March 2008 and 2009 amounted to Rp 51,933; Rp 173,121 and
USD 28,011,842; and Rp 262,562 and USD 44,048,064; Rp 71,673 and USD 18,204,419;
Rp 20,183 and USD 1,397,307, respectively.
Page 61

27. SIGNIFICANT AGREEMENTS WITH THIRD PARTIES (continued)
d. System implementation and integration agreement with AMDOCS

On 1 July 2005, the Company signed a Professional Services Agreement with AMDOCS for
services related to the currently installed AMDOCS system. This agreement commences with
effect from the agreement signing date, and, unless extended, ends on 31 December 2010 or
earlier if terminated by either party in accordance with the agreement.
On 1 January 2007, the Company signed a Software Licence and Maintenance Agreement with
AMDOCS, which grants the Company a licence to use the AMDOCS software and the
maintenance service. This agreement commences with effect from the agreement signing date for
five years unless terminated by the mutual written consent of both parties or terminated otherwise
as provided in this agreement.
e. Supply, installation and maintenance agreement with PT Huawei Tech Investment (“HTI”)
On 8 June 2006, the Company signed a supply and installation agreement with HTI for the supply
and installation of 3G, to provide and support a mobile telecommunications system throughout
Indonesia. The agreement is valid from 8 June 2006 to 8 June 2011, unless terminated earlier by
either party.
On 27 December 2007, the Company signed a maintenance agreement with HTI. The agreement
sets out terms and conditions for the maintenance of various products and services which may be
supplied by HTI from time to time, following the issue of one or more purchase orders by the
Company. This agreement is valid from 1 January 2008 until the last purchase order or the date
on which the agreement is terminated by notice by either party.
On 4 September 2008, the Company signed an installation agreement with HTI. The agreement
sets out terms and conditions for the installation of various products and services which may be
Company. This agreement is valid from 4 September 2008 until the last purchase order or the
date on which the agreement is terminated by notice by either party.
On 4 September 2008, the Company signed a purchase agreement with HTI. The agreement sets
out terms and conditions for the purchase of various products and services which may be
Company. This agreement is valid from 15 September 2008 until the last purchase order or the
date on which the agreement is terminated by notice by either party.
Purchase orders issued for the years ended 31 December 2006 and 2007; and 2008; and three-
month periods ended 31 March 2008 and 2009 amounted to USD 2,656,948; USD 22,638,492;
and Rp 80,253 and USD 71,376,311; Rp 18,798 and USD 12,412,798; and Rp 3,391 and USD
7,828,121, respectively.
f. Cable installation agreement with NSW Submarine Cable System Sdn. Bhd. (“NSW
Malaysia”)
On 12 April 2004, the Company signed a cable installation agreement with NSW Malaysia to
establish a submarine fibre optic cable system, to provide services between Lombok (Senggigi)
and Bali (Sanur), Bali (Jimbaran) and East Java (Puger), West Java (Ancol) and Belitung
(Tanjung Kiras), and by a variation of the order from the Company, an additional link between
Belitung (Tanjung Kiras) and Bangka (Tempilang). This agreement is valid from 12 April 2004
until the end of the warranty period, which is five years after the date of final acceptance of the
system, unless terminated earlier by either party.
Page 62

g. Equipment supply, maintenance and installation agreement with PT Alita Praya Mitra
(“APM”)
On 26 March 2008, the Company signed a maintenance agreement with APM. The agreement
sets out terms and conditions for the maintenance for various products and services which may
be supplied by APM from time to time, following the issue of one or more purchase orders by the
Company. This agreement is valid from 1 January 2008 until the last purchase order or the date
on which the agreement is terminated by notice by either party.
On 1 May 2008, the Company signed a general purchase agreement with APM for the supply of
network equipment. This agreement is valid until 31 December 2010 unless terminated earlier by
either party. The agreement sets out terms and conditions for the purchase of various products
and services which may be supplied by APM from time to time, following the issue of one or more
purchase orders by the Company. This agreement replaces all other agreements signed
previously.
On 13 August 2008, the Company signed an installation agreement with APM for the installation
of the Company’s network equipment. This agreement is valid until the latest purchase order
issued by the Company or until the agreement is terminated earlier by either party. The
agreement sets out terms and conditions for the installation of various products which may be
supplied by APM from time to time, following the issuance of one or more purchase orders by the
Company. This agreement replaces all other agreements signed previously.
Purchase orders issued for the years ended 31 December 2006, 2007 and 2008; and for the
three-month periods ended 31 March 2008 and 2009 amounted to Rp 36,945 and USD
37,203,495; Rp 61,876 and USD 42,314,044; Rp 48,027 and USD 29,418,551; Rp, 7,160 and
USD 3,184,685 and Rp 5,918 dan USD 1,859,897, respectively.
h. Fibre optic cable installation along the railroad in Java island agreement with PT Kereta
Api (Persero) (“PT KAI”)
On 20 December 1996, the Company signed an agreement with PT KAI to install a fibre optic
cable along the railroad in Java island, in Agreement No. Perumka 342/HK/TEK/96, or
No. Excelcomindo PKS.18/XL/XII/96. This Agreement is effective from 20 December 1996 with a
one-year grace period for the project’s development stage, and ends on 19 December 2017 at
which time payment of rent is to be executed in two phases.
This agreement can be extended with both parties’ approval. To ensure the validity of such an
extension of the agreement, the Company should submit a written proposal at least three months
prior to the expiry date of the agreement. If the Company fails to pay the rent on the due date, PT
KAI shall reserve the right to claim a late payment charge at 1‰ (one per mile) per day of the due
amount, and these late payment charges are capped at a maximum of 5%.
On 15 September 2006, the Company signed a contract amendment related to the second phase
payment (according to Agreement No. Perumka 342/HK/TEK/96, or No. Excelcomindo
PKS.18/XL/XII/96) to determine the rental extension period, which, according to Agreement
No. Perumka 342/HK/TEK/96, or No. Excelcomindo PKS.18/XL/XII/96, was to expire on
19 December 2017. This agreement was extended until 19 December 2022.
Page 63

h. Fibre optic cable installation along the railroad in Java island agreement with PT Kereta
Api (Persero) (“PT KAI”) (continued)
On 24 February 1997, the Company also signed land lease agreement No. Perumka
39/HK/TEK/1997, or No. Excelcomindo PKS.20/Excel/II/1997 to build the Company’s
telecommunications tower and building. The agreement is valid for 20 years with a one-year
grace period; thus, the agreement should be valid until 19 December 2017. The agreement has
been further extended until 19 December 2022.
i. Interconnection agreements
Interconnection agreements concern the sharing of facilities with PT Telekomunikasi Indonesia

Tbk (“Telkom”), PT Telekomunikasi Selular (“Telkomsel”), PT Indosat Tbk and others. These
agreements outline the tariffs, rights and obligations of the parties, settlements, reconciliation of
billing, and penalties.
j. International roaming agreements
The Company has entered into International roaming agreements with several international
roaming partners (approximately 354 partners as of 31 March 2009). These agreements outline
charges and tariffs, billing and accounting, services provided for roaming subscribers, liability of
parties, and settlement procedures. The international roaming revenue calculation is based on
GSM International Roaming Agreements (AA14).
k. Leased line agreements
Leased line agreements exist with PT Mora Telematika Indonesia, PT Bank CIMB Niaga Tbk
(formerly PT Bank Niaga Tbk and Lippo Bank), PT Bakrie Telecom Tbk, PT Nettocyber Indonesia,
PT Bank Commonwealth and others. These agreements outline lease costs and terms of
payment, rights and obligations of the parties, penalties, restitution and termination procedures.
l. Consortium agreement, Palapa Ring Construction and Maintenance
On 10 November 2007, the Company signed a Construction and Maintenance Agreement with PT
Bakrie Telecom Tbk, PT Indosat Tbk, PT Infokom Elektrindo, PT Powertek Utama Internusa and
PT Telekomunikasi Indonesia Tbk. In this agreement, all parties agreed to participate in the
construction of the Palapa Ring East Indonesia Project. This agreement shall have an initial term
of 15 years from the signing date, and can be extended for the next five years.
On 1 September 2008 and 31 October 2008 the Consortium accepted the resignation of
PT Infokom Elektrindo and PT Powertek Utama Internusa effective from 14 July 2008 and
22 October 2008. Until the date of this report, the amendment of the agreement is still in process.
m. Memorandum of Understanding (“MoU”) and Master Tower Lease Agreement
Following the signing of MoU and Side Letter in December 2007, February and April 2008, the
Company signed Master Tower Lease Agreements with PT Hutchison CP Telecommunications,
PT Sampoerna Telekomunikasi Indonesia, PT Bakrie Telecom Tbk, PT Natrindo Telepon Seluler,
PT Mobile-8 Telecom Tbk and PT Telekomunikasi Indonesia Tbk in April, May, July, August 2008
and February 2009. The agreements are valid for 10-12 years and can be extended for following
5-6 years. Based on these agreements, the Company leases parts of its telecommunications
towers and its sites to other telecommunications operators for regular lease payments and
maintenance fees throughout the lease period. The Master Tower Lease Agreements set out the
rights and obligations of the Company and the lessee.
Page 64

n. Fiber optics lease agreement
The Company entered into agreements with PT Hutchison CP Telecommunications and PT Mora
Telematika Indonesia for a period of 15 years and 10 years, respectively in relation to the lease of
the Company’s fiber optics network. Rights to use the network commenced in January 2009. The
Company entitles to lease payments, which is paid in advance every year as set in the
agreements. In addition, these agreements also set out the rights and obligation of the Company
and the lessees.
28. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

31/12/2006
Foreign currencies Equivalent to
(full amount) million Rupiah
Assets
Cash and cash equivalents USD 24,201,314 218,296
Trade receivables USD 6,378,078 57,530
Total Assets 275,826

Liabilities
Trade payables USD 132,421,494 1,194,442
EUR 7,494,784 88,874
SGD 112,563 662
CHF 8,062 59
Other payables USD 21,182,764 191,069
Long-term bonds - principal USD 600,000,000 5,412,000
Total Liabilities 6,887,106
Net Liabilities 6,611,280
31/12/2007
Assets
Liabilities
EUR 2,321,155 31,939
AUD 40,000 329
SGD 117,556 764
CHF 9,221 76
Current portion of long-term bonds - principal USD 350,000,000 3,296,650
Long-term loans - principal USD 230,000,000 2,166,370

Page 65

28. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (continued)
31/12/2008
Assets
Other assets USD 1,521,841 16,664
Total Assets 1,007,424
Liabilities
EUR 2,104,628 32,479
AUD 5,000 38
SGD 250,896 1,909
CHF 24,161 250
Short-term loans USD 50,000,000 547,500
Current maturity of long-term loans –

p rincipal USD 30,564,215 334,678
31/03/2008
Assets
Liabilities
EUR 2,643,003 38,479
SGD 248,677 1,662
CHF 5,166 48
AUD 3,488 29
Short-term loans USD 100,000,000 921,700
Page 66

28. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (continued)
31/03/2008
Liabilities (continued)
31/03/2009
Assets
Other assets USD 49,605,317 574,181
Total Assets 782.472
Liabilities
EUR 894,745 13,714
SGD 212,302 1,617
CHF 21,230 214
GBP 1,260 21
Current maturity of long-term loans –

p rincipal USD 98,218,388 1,136,878
Since the Company’s revenues are mainly denominated in Rupiah and the Company’s liabilities are
mainly denominated in US Dollars, the Company is exposed to fluctuations in foreign exchange rates
resulting mainly from its debt denominated in US Dollars. Most of the liabilities denominated in
US Dollars are long-term and management is continually evaluating feasible long-term hedging
structures.
29. SEGMENT INFORMATION
The Group operates and manages the business under one segment which provides GSM mobile and
telecommunications network services to its customers. The management allocates resources and
assesses performance at the Group level.
Page 67

30. THE PLAN TO SELL TELECOMMUNICATIONS TOWERS AND TO PROVIDE ASSISTANCE TO

MAJORITY SHAREHOLDERS
In the Extraordinary General Meeting of Shareholders on 3 September 2008, the shareholders

approved the plan to execute the sale of the Company's assets, i.e. a maximum of 7,000
telecommunications towers along with infrastructures and facilities related to such towers, and further
sales of a maximum of 3,000 telecommunications towers.
The shareholders also approved the Company's plan to provide assistance to Indocel Holding Sdn.
Bhd. ("Indocel"), the Company's majority shareholder and a subsidiary of Axiata Group Berhad
(formerly Telekom Malaysia International Berhad), in relation to the plan of Axiata Group Berhad and
Indocel to sell down some of the Company's shares owned by Indocel.
As at the date of these financial statements, the plan to sell the Company's telecommunications
towers had not been executed. The Company had provided Indocel with assistance. However,
Indocel's plan to sell its shares in the Company had not been executed as at the date of these
financial statements.
31. SUBSEQUENT EVENTS
a. The Company’s monetary assets and liabilities on 31 March 2009 were reported in Rupiah using
the rates 1 USD = Rp 11,575.00 (full amount), 1 EUR = Rp 15,327.06 (full amount) and 1 SGD =
Rp 7,617.41 (full amount). Those rates were changed to 1 USD = Rp 10,415.00 (full amount), 1
EUR = Rp 13,906.64 (full amount) and 1 SGD = Rp 7,077.11 (full amount) on 8 May 2009. If the
Company reports monetary assets and liabilities in foreign currency as at 31 March 2009 using
these rates, unrealised foreign exchange loss will decrease in the amount of Rp 1,235,314. In the
future, the rates might fluctuate, and Rupiah might depreciate or appreciate significantly
compared to other currencies.
b. On 20 April 2009, the Company bought back part of the USD 250 million Notes amounted to USD
3,635,000 at price of 88.24%-89.24% of the nominal value. In relation to the buyback, the
outstanding Notes after 20 April 2009 amounted to USD 124,067,000 (refer to Note 12a).
c. On 6 April 2009, the Company entered into a forward foreign currency contract with PT Bank DBS
Indonesia, The Royal Bank of Scotland and JPMorgan Chase Bank to hedge the payment of a
long term loan in USD. Based on the contract commencing on 8 April 2009, the Company would
swap, at the final exchange date (termination date) of 2 October 2009, a total of Rp 104.25 billion
(full amount) for USD 8,800,000 (refer to Note 24).
d. On 6 April 2009, the Company entered into interest rate swap contracts with Standard Chartered
Bank to hedge the payment of EKN interest in USD where the principal is installed every six
months. Based on the contracts commencing on 6 April 2009, the Company will pay fixed interest
of 2.3225% on each interest exchange period (refer to Note 24).
e. On 13 April 2009, the Company entered into a forward foreign currency contract with PT Bank
DBS Indonesia and The Royal Bank of Scotland to hedge the payment of a long term loan in
USD. Based on the contract commencing on 14 and 15 April 2009, the Company would swap, at
the final exchange date (termination date) of 1 April 2010, a total of Rp 107,996 billion (full
amount) for USD 8,800,000 (refer to Note 24).
Page 68

32. ECONOMIC CONDITIONS
The ongoing global liquidity crisis has resulted in, among other things, lower level of capital market
funding, tight liquidity across the banking sector, and, at times, higher interest rates and high
volatility in stock and currency markets in many countries, including Indonesia. The full extent of the
impact of the ongoing financial crisis is proving to be difficult to anticipate or completely guard against.
Management’s plans in anticipation of current economic conditions included, among others, to
maximize utilization of the existing network coverage, increase the market penetration through
strategic branding activities, diversify services range and improve the operational efficiency through
various cost reduction programs.
33. NEW ACCOUNTING STANDARDS
The Indonesian Financial Accounting Standard Board has issued the following revised accounting
standards which may affect the Company’s financial statements:
- SFAS 26 (Revised 2008) – “Borrowing Costs” (applicable for financial statements covering
periods beginning on or after January 1, 2010)
- SFAS 50 (Revised 2006) – “Financial Instruments: Presentation and Disclosures” (applicable for
financial statements covering periods beginning on or after January 1, 2010)
- SFAS 55 (Revised 2006) – “Financial Instruments: Recognition and Measurement” (applicable for
financial statements covering periods beginning on or after January 1, 2010)
The Company is still evaluating the possible impact of these standards on the financial statements.
Page 69

Report Financial XL Q1 2009

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PT EXCELCOMINDO PRATAMA Tbk

CONSOLIDATED FINANCIAL STATEMENTS

31 DECEMBER 2006, 2007 AND 2008; AND

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED STATEMENTS OF INCOME

2006 2007 2008 2008 2009

Gross revenue 6,466,057 8,364,711 12,155,991 2,654,485 2,925,867

Revenue net of interconnection

3,653,814 4,699,988 8,011,837 1,572,184 2,178,577

OPERATING INCOME 1,027,861 1,759,782 1,752,989 496,448 225,279

(25,439 ) (1,241,750) (1,828,198) (30,756 ) (630,021)

INCOME TAX (EXPENSE)/

(350,539) (267,251) 60,100 (145,775) 98,674

NET INCOME/(LOSS) 651,883 250,781 (15,109) 319,917 (306,068)

EARNING/(LOSS) PER SHARE:

BASIC 2p,17 92 35 (2) 45 (43)

DILUTED 2p,17 92 35 (2) 45 (43)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Notes Share capital Capital surplus Appropriated Unappropriated Total

BALANCE AS AT 31 DECEMBER 2006,

Balance as at 1 January 2006 709,000 2,691,684 - 228,627 3,629,311

Net income for the year - - - 651,883 651,883

Balance as at 31 December 2006 709,000 2,691,684 - 880,510 4,281,194

Net income for the year - - - 250,781 250,781

Dividends 2q,15 - - - (67,169) (67,169)

Appropriation to statutory reserve 16 - - 100 (100) -

Balance as at 31 December 2007 709,000 2,691,684 100 1,064,022 4,464,806

Net loss for the year - - - (15,109) (15,109)

Dividends 2q,15 - - - (141,800) (141,800)

Appropriation to statutory reserve 16 - - 100 (100) -

Balance as at 31 December 2008 709,000 2,691,684 200 907,013 4,307,897

BALANCE AS AT 31 MARCH 2008 AND

Balance as at 31 December 2007 709,000 2,691,684 100 1,064,022 4,464,806

Net income for the period - - - 319,917 319,917

Balance as at 31 March 2008 709,000 2,691,684 100 1,383,939 4,784,723

Balance as at 31 December 2008 709,000 2,691,684 200 907,013 4,307,897

Net loss for the period - - - (306,068) (306,068)

Balance as at 31 March 2009 709,000 2,691,684 200 600,945 4,001,829

CONSOLIDATED STATEMENTS OF CASH FLOWS

2006 2007 2008 2008 2009

CASH FLOWS FROM

Cash generated from operations 2,802,668 3,976,042 4,895,034 820,926 1,308,427

Net cash flows provided by

CASH FLOWS FROM

Net cash flows used in

CASH FLOWS FROM

Net cash flows provided by

Cash and cash equivalents

Effect of exchange rate changes

Cash and cash equivalents

587,176 805,769 1,170,203 610,327 591,842

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

b. Company’s public offerings

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

b. Company’s public offerings (continued)

In accordance with its Articles of Association, the Company’s objective is to engage in

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company is principally involved in the provision of basic telecommunications services,

The Company was granted several telecommunications licences by the Indonesian

Details of these licences are as follows:

Licence to Operate Internet Internet access services

Licence to operate Internet Internet interconnection

Based on Decree No. 19/KEP/M.KOMINFO/2/2006 of the Minister of Communication and

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS