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T H E F I R S T Q U A R T E R 2 0 1 2 R E S U L T S ( U N A U D I T E D ) TICKERS:IDX : TLKMNYSE : TLKLSE : TKIA

ISSUED SHARES:20,159,999,280 shares

SHAREHOLDER COMPOSITION:Govt. of Indonesia : 53.70%Public : 46.30%Excl. Treasury stock 940,605,460 shares.

CONVERSION RATES (US$ 1.00):March 31, 2012 = Rp9,144.00March 31, 2011 = Rp8,707.50

FINANCIAL PERFORMANCERevenue(in Rp. Bn)

OPERATIONAL PERFORMANCESubscribers (million)

Highlights Our consolidated revenue in 1Q 2012 grew by 6.5% YoY and our celullar operation

recorded an 8.9% YoY revenue growth to Rp12.3 trillion.

Our broadband users grew by 35.9% YoY:

o Fixed broadband users grew to 1.9 millions.

o Mobile broadband/Flash users reached 5.2 millions.

o Blackberry users reached 3.3 millions.

The expense declined 11.7% QoQ as a result of continuous cost leadership program.

We recorded a 2.8% QoQ increase in EBITDA margin to 54.1%.

Investor RelationsPT Telekomunikasi Indonesia TbkGrha Citra Caraka, 5th Floor

Jl. Gatot Subroto No. 52, JakartaPhone : 62 21 5215109Fax : 62 21 5220500Email : [email protected] : www.telkom.co.id

DISCLAIMERThis document contains financial conditions and result of operation, and may also contain certainprojections, plans, strategies, and objectives of the Company, which would be treated as forward looking

statements within the meaning of applicable law. Forward looking statements, by their nature, involve riskand uncertainty that could cause actual results and development to differ materially from those expressed orimplied in these statements. Telkom Indonesia does not guarantee that any action, which may have beentaken in reliance on this document, will bring specific results as expected.

Financial HighlightsKey Indicators YoY QoQ

(Rp. Bn) 1Q11 1Q12 Growth(%)

2Q11 3Q11 4Q11 1Q12 Growth(%)

Revenues 16,706 17,796 6.5 17,666 18,462 18,418 17,796 (3.4)

Expenses 11,386 11,756 3.2 11,935 13,331 13,317 11,756 (11.7)

Profit before Finance(cost)/income & Tax 5,419 6,220 14.8 5,897 5,251 5,380 6,220 15.6

EBITDA 8,642 9,623 11.4 9,432 9,031 9,451 9,623 1.8

EBITDA Margin (%) 51.7 54.1 2.4 53.4 48.9 51.3 54.1 2.8

Net Income 2,828 3,322 17.5 3,111 2,445 2,581 3,322 28.7

Operational Highlights

Subscriber (000)YoY QoQ

1Q11 1Q12 Growth(%)

2Q11 3Q11 4Q11 1Q12 Growth(%)

Fixed Broadband/Speedy 1,791 1,884 5.2 2,000 2,184 1,789 1,884 5.3

Mobile Broadband/Flash 4.336 5,241 20.9 5,190 5,948 5,532 5,241 (5.3)

Blackberry 1,580 3,348 111.9 2,195 3,039 3,153 3,348 6.2

Total 7,707 10,473 35.9 9,385 11,171 10,474 10,473 (0.0)

Postpaid 2,165 2,213 2.2 2,202 2,213 2,188 2,213 1.1

Prepaid 97,200 107,668 10.8 100,089 101,936 104,829 107,668 2.7

Total 99,365 109,881 10.6 102,291 104,149 107,017 109,881 2.7

LIS Wireline 8,333 8,686 4.2 8,420 8,510 8,602 8,686 1.0

LIS Wireless 18,708 15,123 (19.2) 18,736 18,085 14,238 15,123 6.2

Postpaid 536 426 (20.5) 525 520 468 426 (9.0)

Prepaid 18,172 14,697 (19.1) 18,210 17,565 13,770 14,697 6.7

Total 27,041 23,809 (12.0) 27,156 26,595 22,839 23,809 4.2

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THE FIRST QUARTER 2012 (UNAUDITED)

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PT TELEKOMUNIKASI INDONESIA, Tbk.THE FIRST QUARTER 2012 RESULTS (UNAUDITED)

The following analysis and discussion is based on our Indonesian GAAP financial statements for thethree months ended March 31, 2011 and 2012. The reports have been submitted to BAPEPAM-LK,the Indonesia Capital Market and Financial Institutions Supervisory Agency, and to US Securitiesand Exchange Commission.

FINANCIAL RESULTS

Revenues

Key Indicators YoY QoQ(Rp. Bn)

1Q11 1Q12Growth

(%)2Q11 3Q11 4Q11 1Q12

Growth(%)

Cellular 6,755 7,197 6.5 6,777 7,411 7,655 7,197 (6.0)

Fixed Line 2,930 2,805 (4.3) 2,936 2,882 2,871 2,805 (2.3)

Data, Internet & IT 5,452 6,115 12.2 6,096 6,353 6,023 6,115 1.5

Interconnection 846 876 3.5 832 948 883 876 (0.8)

Network 305 306 0.3 325 325 346 306 (11.6)

Other 418 497 18.9 700 543 640 497 (22.3)

Total 16,706 17,796 6.5 17,666 18,462 18,418 17,796 (3.4)

We made total revenue of Rp17.8 trillion in 1Q12, an increase of 6.5% YoY. Cellular revenues is stillthe largest contributor while Data, internet and IT services recorded the highest growth. Total revenuedecreased by 3.4% QoQ with details are as follows:

Cellular revenues decreased by 6.0% QoQ resulting from the decrease of call features, localusage revenue, and monthly subscription revenue. It was a 6.5% YoY increase.

Fixed line revenues, consisted of fixed wireline voice and fixed wireless voice revenues, slightlydecreased by 2.3% QoQ.

o Fixed wireline revenue decreased by 3.7% or amounting to Rp95.2 billion as a result ofdecrease in local and long distance usage revenue.

o Fixed wireless revenue increased by 9.9% or amounting to Rp29.5 billion as results ofcombined impact of increase in local usage and decrease in long distance usage revenue.

Data, Internet & IT Services revenues mainly contributed by Data Communication & Internetand SMS. Data communication & internet revenues increased by 6.7% QoQ or amounting toRp206.9 billion, while SMS revenues decreased by 7.0% QoQ or amounting to Rp208.3 billion.This made total Data, Internet & IT Service was slightly increasing by 1.5%.

Interconnection revenues slightly decreased by 0.8% QoQ or amounting to Rp7 billion as aresult of combined impact of increase in international OLO revenues and decrease in bothdomestic and international celullar interconnection revenues.

Network revenues decreased by 11.6% QoQ or amounting to Rp40 billion. The decrease wascontributed by the decrease of leased line revenues for both domestic and international.

Other revenues decreased by 22.3% QoQ or amounting to Rp143 billion. The decrease mostlycontributed by directory assistant and tower business revenues.

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Expenses

Key Indicators YoY QoQ

(Rp. Bn)1Q11 1Q12

Growth(%)

2Q11 3Q11 4Q11 1Q12Growth

(%)

Operation & Maintenance 4,070 3,916 (3.8) 4,153 4,343 3,806 3,916 2.9

Personnel 1,909 2,047 7.2 1,843 2,590 2,212 2,047 (7.5)

Interconnection 806 995 23.4 791 933 1,025 995 (2.9)

Marketing 725 635 (12.4) 829 816 908 635 (30.1)

General Administrative 553 580 4.9 617 749 1,016 580 (42.9)

Depreciation & Amortization 3,448 3,465 0.5 3,703 3,632 4,080 3,465 (15.1)

Loss/(gain) on forex, shareof profit associated comp. &others expenses (125) 118 (194.4) (1) 268 270 118 (56.3)

Total 11,386 11,756 3.2 11,935 13,331 13,317 11,756 (11.7)

Compared to last quarter results, total expenses decreased by 11.7% with the following details:

Operation & Maintenance (O&M) expenses increased by 2.9% QoQ. During 1Q12, wemanaged to save O&M supporting facilities including power supply expense, CPE of leased line,operational security, building lease, operational vehicle and antenna & tower expenses. At thesame time, there were increases in frequency, radio base station O&M, IT services, outsourcingand cooperation expenses.

Total personnel expenses decreased by 7.5% QoQ due to the one time payment of allowance inTelkomsel and underpayment of employees annual income tax in 4Q11.

Interconnection expenses decreased by 2.9% QoQ that was contributed from decrease in

international interconnection and domestic wireline cellular interconnection.

Marketing expenses decreased by 30.1% QoQ mostly due to decrease in advertising, salessupport fees, and exhibition expense.

General & Administrative expenses decreased by 42.9% QoQ. The decrease mostlycontributed by decrease in allowance for doubtfull accounts and obsolescence, social contributionexpense, professional fees and travelling expenses.

Depreciation & Amortization expenses decreased by 15.1% QoQ or amounting to Rp615 billionmostly due to the one time adjustment of CDMA assets impairment in 4Q11.

EBITDA, EBITDA Margin and Net Income

First quarter 2012 EBITDA increased by 11.4% YoY and 1.8% QoQ to Rp9.6 trillion and EBITDAmargin was at 54.1%. Those increases happened as a result of decline in cash operating expensesspending during 1Q12.

Net Income for 1Q12 increased by 17.5% YoY and 28.7% QoQ to Rp3.3 trillion.

The basis to calculate the EBITDA is the expenses without forex exchange gain or loss, share ofprofit of associated companies, others-net and depreciation & amortization expenses.

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Financial Position

Key Indicators YoY QoQ

(Rp. Bn)1Q11 1Q12

Growth(%)

2Q11 3Q11 4Q11 1Q12Growth

(%)

Assets 100,686 104,624 3.8 99,834 99,473 103,054 104,624 1.5Liabilities 40,455 40,238 (0.5) 44,548 41,234 42,073 40,238 (4.4)

Non-controlling Interests 12,991 14,704 13.2 11,064 12,288 13,471 14,704 9.1

Equity 47,240 49,682 5.2 44,222 45,951 47,510 49,682 4.6

Increase in Assets by 1.5% QoQ was as a result of:

o Increase in Current assets. This was mainly due to increase in cash and cash equivalent,claim for tax refund, and customer trade receivables.

o Slightly decrease in Non-current assets. This was driven by the decrease in Fixed Assets and

the advances for fixed assets purchasing. The decrease in net fixed assets was attributable todecrease in transmission installation and equipment.

Decrease in Liabilities by 4.4% QoQ was a result of:

o Decrease in Current Liabilities. This was attributable to the trade payables for decrease ofmore equipments & materials purchases and the decrease of long-term liabilities that near tomaturities.

o Decrease in Non-current liabilities. This was mostly contributed by the decrease in banksloans.

Increase in non-controlling interest of 9.1% QoQ was due to the growth of non-controlling netassets of subsidiaries, notably of Telkomsels.

Increase in Equity of 4.6% QoQ was mainly due to the additional earnings retained in 2012, whichwas compensated by the additional of Treasury Stock in the Share Buy Back IV Program.

Cash Flows

Key Indicators YoY

(Rp. Bn)1Q11 1Q12

Growth(%)

Cash Flow from Operating Activities 7,142 8,775 22.9

Cash Flow from Investing Activities (3,131) (4,004) 27.9

Cash Flow from Financing Activities (2,432) (3,257) 33.9

Net Increase in Cash & Cash Equivalent 1,579 1,514 (4.1)

Effect of Foreign Rate Changes (53) 15 (128.3)

Cash & Cash Equivalents at Beginning of Periods 9,120 9,634 5.6

Cash & Cash Equivalents at End of Periods 10,646 11,163 4.9

Net cash generated from operations increased by 22.9% YoY as a result of the cash receiptrevenues from customers.

Net cash used for investment activities increased by 27.9% mostly due to the increase in cashspent for fixed assets purchasing.

Net cash used for financing activities increased by 33.9% mostly due to the increase in cashspent in Share Buy Back IV Program in 1Q 2012.

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Debts

Currencies YoY QoQ Portion (%)(Rp. Bn)

1Q11 1Q12Growth

(%)4Q11 1Q12

Growth(%)

1Q11 4Q11 1Q12

IDR/Rupiah 14,643 11,174 (23.7) 13,579 11,174 (17.7) 76.4 78.4 76.7USD/DollarAmerika Serikat 3,386 2,288 (32.4) 2,583 2,288 (11.4) 17.7 14.9 15.7

JPY/Yen Jepang 1,131 1,112 (1.7) 1,168 1,112 (4.8) 5.9 6.7 7.6

Total 19,160 14,574 (23.9) 17,330 14,574 (15.9) 100.0 100.0 100.0

Gearing

Key Indicators YoY

1Q11* 1Q12 Growth

Net Debt to Equity (%) 17.1 7.7 (9.4)

Debt Equity (%) 40.6 30.9 (9.6)

Debt to EBITDA (%) 221.7 159.6 (62.1)

Debt Service Ratio (Times) 1.9 2.2 0.3

* as restated

Our debts consisted of Two-Step Loans, Bonds, Notes and Banks Loans. During first quarter 2012,we made repayment of Banks Loans, Two-Step Loans, MTN and Notes of Rp2.1 trillion, Rp788.9billion, Rp1.2 billion and Rp5.0 billion, respectively. We made new debts for working capital purposesin the form of Banks loan, MTN and Notes amounting to Rp112.1 billion, Rp6.0 billion, and Rp65.6billion respectively.

Financial Ratio

Ratios YoY QoQ(%)

1Q11 1Q12Growth

(%)2Q11 3Q11 4Q11 1Q12

Growth(%)

Profit Margin 32.4 35.0 2.6 33.4 28.4 29.2 35.0 5.7

Profit for the year attributableto owners Margin 16.9 18.7 1.8 17.6 13.2 14.0 18.7 4.7

EBITDA Margin 51.7 54.1 2.4 53.4 48.9 51.3 54.1 2.8

Current Ratio 108.6 106.2 (2.4) 89.1 95.4 95.8 106.2 10.4

Return on Assets 2.8 3.2 0.4 3.1 2.5 2.5 3.2 0.7

Return on Equity 6.0 6.7 0.7 7.0 5.3 5.4 6.7 1.3

Total Liabilities to Equity 85.6 81.0 (4.6) 100.7 89.7 88.6 81.0 (7.6)

Telkomsel Financial Result

Income Statement

Statement of Income YoY QoQ(Rp. Bn) 1Q11 1Q12 Growth

(%)4Q11 1Q12 Growth

(%)

Revenues 11,297 12,298 9 12,703 12,298 (3)

Expenses (incl. Depreciation) 7,334 7,600 4 8,116 7,600 (6)

EBITDA 6,245 7,075 13 7,000 7,075 1

EBITDA Margin (%) 55 58 3 55 58 3

Net Income 2,856 3,505 23 3,315 3,505 6

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Telkomsel recorded a strong revenue growth in 1Q12. It reached Rp12.30 trillion in 1Q12, anincrease by 9% YoY, which resulted from the growth of all voice, SMS and data revenues. Comparedto last quarter results, it declined 3% mainly due to decline in voice revenue.

Postpaid revenuegrew slightly to Rp1.09 trillion due to increase in data revenue combined with

voice revenue decline. It slightly declined QoQ due to decline in voice revenue combined with

growth of data revenue.

Prepaid revenueincreased 12% YoY to Rp10.24 trillion, which was mainly driven by the growth of

data revenues. It was down 2% compared to last quarter, as a result of voice and SMS revenue

decline combined with data growth.

International roaming revenuedecreased 14% YoY to Rp143 billion due to the impact of special

inter operator tariff with some roaming partners. It also declined 14% QoQ as there was impact

from Hajj season in 4Q11.

Interconnection revenuedecreased 8% YoY to Rp709 billion and 11% QoQ, which was mainlydue to decrease in domestic interconnection.

Other revenues, resulted from network lease and USO compensation fee, decreased 11% YoY to

Rp114 billion and 29% QoQ. Both the YoY and QoQ decline were from USO compensation fee.

Non-voice revenues (SMS, Data & VAS) increased 15% YoY to Rp4.6 trillion which was contributedby SMS and data revenues growth. It slightly grew 0.5% QoQ due to data revenue growth combinedwith SMS and VAS/content revenues decline.

We put strong efforts to control the growth of expenses in the first quarter 2012. Expenses increasedonly by 4% YoY to Rp7.60 trillion and it even declined by 6% from previous quarter.

Personnel expenses increased 28% YoY to Rp482 billion, which was due to salary adjustment

and impact of allocation of employee allowances. It decreased by 27% QoQ, as there was one

time adjustment on personnel expenses recorded in 4Q11.

Operation & maintenance expensesincreased slightly 1% YoY to Rp2.62 trillion, due to increase

in network space rental combined with decline in frequency fees. It grew 6% QoQ, on higher

frequency fees.

General & administration expensesdecreased 2% YoY to Rp197 billion. It declined 38% QoQ,

which was due to decline in most of general & administration expense items.

Marketing expensesdecreased 20% YoY and 36% QoQ to Rp402 billion, which was mainly onreduction of advertising and promotion expenses.

Interconnection charges (domestic and international) decreased 4% YoY and 16% QoQ to Rp622

billion due to decline in both domestic and international interconnection charges.

Cost of Services grew 25% YoY to Rp899 billion and increased 3% QoQ. The YoY and QoQ

growth of Cost of Services was mainly due to increase in data access fees in line with the growth

of the data business, particularly for blackberry service.

Depreciation expense was relatively stable at Rp2.39 trillion. It decreased 1% from previous

quarter.

Others-netdecreased 88% YoY to a net gain of Rp14 billion due to the forex loss resulted from

depreciation of the rupiah in 2011.

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Net finance costs (interest income and financing charges) declined 98% YoY and 97% QoQ to Rp 3.4billion resulted mainly from decrease in financing charges due to debt repayment.

Financial Position

Total Assets decreased by 4% YoY to Rp60.85 trillion. Total liabilities decreased by 11% to Rp18.97trillion, while total equity increased 13% to Rp41.88 trillion.

Current assets increased 60% to Rp12.35 trillion, mainly due to increase in cash and cash

equivalent.

Fixed assets decreased 5% to Rp45.77 trillion as a result of network infrastructure growth

combined with impact of accelerated depreciation of fixed-assets.

Current liabilities increased 10% to Rp13.34 trillion, in relation with the increase of accrued

liabilities and tax payable.

Non-current liabilities decreased 39% to Rp5.64 trillion, mainly due to repayment of medium-term

loans.As of March 31, 2012 Telkomsel had Rp4.27 trillion loans outstanding after transaction cost, whichRp1.49 trillion was presented as current liabilities and Rp 2.78 trillion as non-current liabilities.

Cash Flow and Capital Expenditures

Net cash generated from operations in 1Q12 was Rp6.79 trillion, increase 26% YoY due to increasein cash received from operations combined with decrease in payments for taxes. Cash flow forinvestment activities, increased 29% to Rp2.37 trillion (approximately USD 258 million) mostly onacquisition of network infrastructures. Net cash used in financing activities increased 19% to Rp1.50trillion as there were significant amount of loans due in 1Q12 and loan early repayment initiatives.

STATEMENT OF CASH FLOWS AS OF MARCH 31, 2011 AND 2012(In Billions of Rupiah)

1Q11 1Q12

Cash Flow from Operating Activities 5,382 6,792

Cash Flow for Investing Activities (1,845) (2,372)

Cash Flow from Financing Activities (1,265) (1,502)

Net Increase in Cash & Cash Equivalents 2,272 2,918

Effect of Foreign Exchange Rate Changes (16) 11

Cash and Cash Equivalents at Beginning of Periods 1,222 4,223

Cash and Cash Equivalents at End of Periods 3,478 7,152

Addition to Fixed Assets (incl. CIP) 1,349 2,256

Loan/ Debt

In 1Q12, the remaining available loan facility of Rp3.0 trillion was expired. For the existing loans,Telkomsel has agreed on certain financial covenants related to its loans/debts. As of March 31, 2012these covenants were as follows:

Covenant t/b maintained Required Actual

Bank Loans EBITDA to Debt Service 1.25 5.51

Debt to Tangible Net Worth 2.00 0.10

For subsequent events in April 2012, The General Shareholders Meeting set the dividend payout ratio

is 80% of Net profit or equivalent to Rp10.25 trillion that will be paid on two terms. The Rp8.20 trillionwill be paid on 30 May 2012 and the rest of Rp2.05 trillion will be paid on 29 of August 2012.

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OPERATIONAL RESULTS

Broadband Services

Customer Base Fixed Broadband (Speedy)

1.9 million customers, a 5.2% growth YoY and 5.3%increase QoQ.

Mobile Broadband (Flash)5.2 million customers, a 20.9% growth YoY and 5.3%decrease QoQ.

ARPU & Traffic Production

Fixed Broadbando

1Q12 ARPU was Rp188 thousand, a 0.5% increase YoY and 13.2% increase compared toARPU of 4Q11.

o We maintained Speedy customers monthly usage growing 8.4% YoY and 1.2% QoQ whichbrought 1Q12 Speedy revenue of Rp1.04 trillion, an increase of 8.1% YoY and 0.4% QoQ.

Mobile BroadbandWith the growth of Telkomsel data users, data traffic/payload has shown an outstanding growthduring the last few quarters. In 1Q12, it grew 109% YoY to approximately 10,758 terabytes.

New Products & Programs

Mobile BroadbandNew Telkomsel BlackBerry package for simPATI users was launched in March 2012. The

package allows customers to have browsing, social network access (Facebook, Twitter & MySpace), BBM chatting and one email account ([email protected]).

Network Development

Mobile BroadbandBy the end of March 2012, Telkomsel has 10,163 3G Node-B units on air, a 22.0% increase fromthe same period last year.

Cellular Services

Customer BaseThe customer base grew strongly as shown by 11% increasefrom a year ago and 3% from last quarter. We added 2.9million new customers in 1Q12.

As of March 30, 2012, Telkomsel served 109.9 millioncustomers, consist of 2.2 million postpaid and 107.7 millionprepaid customers, which made us as the market leader ofcellular customers with 43% share.

Traffic Production & ARPU

Total outgoing minutes of use (MoU, chargeable and non-chargeable) decreased 7% YoY to 40.5billion minutes resulted from decline in traffic matched with the trend of shift away from voice. It was4% lower if we compare to total MoU production in 4Q11.

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Blended ARPU presentation for 1Q12 was Rp 36,000, which declined 3% YoY and 5% QoQ. ARPUhas been declining during the last few years due to the impact of competition, penetration to lowermarket segments and multiple simcards holders phenomenon.

Total outgoing SMS production (chargeable and non-chargeable) increased 13% YoY to 62 billionunits, which was mainly contributed by Kartu As. It increased 5% QoQ.


During 1Q12, we launched several promo programs:

In January 2012, we launched iPhone 4S with special packages for postpaid and prepaid

customers consist of bundled with minutes, SMS and data access package.

Facebook starter pack offers more benefits to customers in January 2012 with lifetime access to

Facebook website from handset through m.facebook.com, attractive packages for SMS & data

and affordable tariff for voice & SMS.

In March 2012, a modified Kartu As 30 hours promotion was introduced to customers, which

provides access to Facebook, Twitter & chatting, bonus talk to be used up to 30 hours and also

thousands of SMSs.

Network Development

By the end of March 2012, Telkomsel had 44,797 BTSs (including 10,163 3G Node-B units) on airand that was an increase of 18.4% from the same period last year. The addition during first quarter2012 were 2,174 units new BTSs (including 654 3G Node-B units).

The following table presents a comparison of our cellular business performance:

Key Indicators UnitYoY QoQ

1Q11 1Q12Growth

(%)2Q11 3Q11 4Q11 1Q12

Growth(%)

Total Customer

Postpaid (kartuHALO) Subs (000) 2,165 2,213 2.2 2,202 2,213 2,188 2,213 1.1

Prepaid (simPATI +Kartu As)

Subs (000)97,200 107,668 10.8 100,089 101,936 104,829 107,668 2.7

Total Subs (000) 99,365 109,881 10.6 102,291 104,149 107,017 109,881 2.7

Net Add

Postpaid (kartuHALO) Subs (000) 39 25 (35.9) 37 11 (26) 25 196.2


Subs (000)5,316 2,839 (46.6) 2,889 1,847 2,893 2,839 (1.9)

Total Subs (000) 5,355 2,864 (46.5) 2,926 1,858 2,867 2,864 (0.1)MoU Chargeable Bn Minutes 43 35 (16.9) 40 38 39 35 (8.0)

MoU Total Bn Minutes 44 41 (7.0) 42 39 42 41 (4.0)

SMS Chargeable Bn Units 25 30 17.1 26 28 30 30 (2.0)

SMS Total Bn Units 54 62 13.0 59 53 59 62 5.0

Postpaid (kartuHALO) Rp.'000 per mo 196 183 (6.6) 198 196 197 183 (7.1)


Rp.'000 per mo34 33 (3.0) 34 37 35 33 (6.1)

Blended Rp.'000 per mo 37 36 (3.0) 38 40 38 36 (5.0)

BTS Unit 37,830 44,797 18.4 39,609 41,037 42,623 44,797 5.1

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The following table presents a comparison of our cellular business performance:(continued)


1Q11 1Q12Growth

(%)2Q11 3Q11 4Q11 1Q12

Growth(%)

Total employees Person 4,403 4,422 0.4 4,409 4,402 4,417 4,422 0.1

Efficiency ratio000Subs/employee 23 24.5 8.4 23 24 24 24.5 1.1

Fixed Line Services

Customer Base

Fixed Wireline8.7 million customers, 4.0% growth from last year and 1.0% increase from last quarter.

Fixed Wireless

15.1 million customers at the end of 1Q12, consisting of 426 thousand postpaid subscribers and14.7 million prepaid subscribers. Compare to previous quarter, fixed wireless customersincreased by 6.2%.

ARPU

Fixed Wireline1Q12 ARPU was at Rp92 thousand, a 5% decrease QoQ.

Fixed Wireless1Q12 blended ARPU was at Rp10.2 thousand, a 5% increase QoQ.


Fixed WirelessIn February 2012, we launched Flexi Bisa Banget program that consisted of Flexi Bisa BangetMobile Broadband, Flexi Bisa Banget Rejeki Nuomplokand Flexi Bisa Banget Bebas Bicara.

Flexi Bisa BangetMobile Broadband is a bundling program of Flexi EVDO Broadband serviceswith various handsets and dongles including 1 month free usages of the broadband internet.

Flexi Bisa Banget Rejeki Nuomplok enables customer who refill or pay monthly payment ofminimum Rp20,000 to have opportunities for winning prizes consisting of 3600 pulse voucherswith denominated of Rp. 25.000, 21 Honda Vario CW motorbikes 2012 and 3 cars of ToyotaAvanza 1.3 G M/T 2012.

Flexi Bisa Banget Bebas Bicara enables customers to make unlimited calling to PSTN andTelkomsel after the second minute of their calls.

Network Development

Up to end of first quarter 2012, we have 5,715 Flexis BTSs covering 370 cities.

The following table presents a comparison of Flexi performance:


1Q11 1Q12Growth

(%)2Q11 3Q11 4Q11 1Q12

Growth(%)

Total Customer

Postpaid (Classy) SSF (000) 536 426 (20.5) 525 520 468 426 (8.9)

Prepaid (Trendy) SSF (000) 18,172 14,697 (19.1) 18,210 17,565 13,770 14,697 6.7

Total SSF (000) 18,708 15,123 (19.2) 18,736 18,085 14,238 15,123 6.2

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The following table presents a comparison of Flexi performance: (continued)


1Q11 1Q12Growth

(%)2Q11 3Q11 4Q11 1Q12

Growth(%)

Net Add

Postpaid (Classy) SSF (000) (11) (42) (286.6) (10) (5) (53) (42) 20.9

Prepaid (Trendy) SSF (000) 558 927 66.3 38 (646) (3,795) 927 124.4

Total SSF (000) 547 886 62.0 28 (651) (3,848) 886 123.0

MoU Mn Minutes 2,366 1,472 (37.8) 2,136 1,781 1,686 1,472 (12.7)

SMS Mn Units 919 666 (27.5) 895 712 672 666 (1.0)

Postpaid (Classy) Rp.'000 78 84 7.0 76 77 80 84 4.3

Prepaid (Trendy) Rp.'000 7 8 15.1 8 7 7 8 8.7

Blended Rp.'000 10 10 6.0 9 9 10 10 4.9

BTS Unit 5,707 5,715 0.1 5,705 5,708 5,715 5,715 -

Coverage Cities 370 370 - 370 370 370 370 -

ADDITIONAL INFORMATION

Capital Expenditure

For the first quarter 2012, paid Capex of Telkom, Telkomsel and other subsidiaries were amounting toRp0.7 trillion, Rp2.4 trillion and Rp0.5 trillion respectively. Telkoms Capex was mainly utilized forenhancing backbone and access infrastructure to support the broadband and for Telkom-3 satellite.Meanwhile, Telkomsel's Capex was utilized for radio access network. Other Subsidiaries Capex wasutilized among others for erecting tower and developing infrastructure.

Share Buyback IV Program

As of March 31, 2012, we have bought back 940.6 million shares in the Indonesian Stock Exchange(IDX) and New York Stock Exchange (NYSE) amounting to Rp3.2 trillion or 64.2% from total targetRp5 trillion. The program will expire on November 2012.

Awards & Recognition

During 1Q 2012, we have been awarded by several institution for our achievements, among others:

The Best Environmental Responsibility dan The Best Investor Relations Professional byCorporate Governance Magazine Asia in 2nd Asian Excellence Recognition Award 2012 inHong Kong.

Indonesia Most Admired Companies 2011 by Fortune Indonesia Magazine for 2 catagories: TheBest in Telecommunication Industrial Sector dan The Best 20 Most Admired Companies inIndonesia.

Bali Service Excellence Award (BSEA) 2012 for Speedy and Flexi in a prestigious contention heldby MarkPlus.Inc.

Top Brand Award 2012 for Speedy, Flexi Pasca Bayar, and Flexi Pra Bayar in a contention heldby Frontier Consulting Group.

Top Brand Award 2012 for kartuHALO(Postpaid SIM-card category) and simPATI(Prepaid SIM-card category) for thirteen consecutive years from Marketing Magazine and Frontier ConsultingGroup.

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Top Brand Award 2012 for TELKOMSELFlash (Mobile Internet Service Provider category) andTelkomsel BlackBerry Internet Service (BlackBerry Service Provider category) from MarketingMagazine and Frontier Consulting Group.

Call Center Service Excellence Award (CCSEA) 2012 in the category of telecommunications andinternet service provider for its Call Center 147 in a contention held by Care Center for CustomerSatisfaction and and Service Excellence Magazine.

Call Center Award 2012 for Service Excellence (Telecommunication Sector category) from Carre-CCSL (Center for Customer Satisfaction & Loyalty) and Marketing Magazine.

Gadget+ Award 2012 for Telkomsel as The Best GSM Provider and The Best Marketer of theYear from Gadget+ Magazine.

Indonesia Most Favorable Brand in Social Media 2012 for simPATI (GSM SIM-card category)from SWA Magazine.

Achievements

Telkom being the first in Indonesia rewarded SAP Customer Center of Expertise (CCoE)Certificate on February 2012.

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Table 1

PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

DECEMBER 31, 2011 (AUDITED) AND MARCH 31, 2012 (UNAUDITED)

(figures are presented in billions of Rupiah)

DEC 31, 2011 MAR 31, 2012

ASSETS

CURRENT ASSETSCash and cash equivalents 9,634 11,163Available-for-sale financial assets 361 373Trade receivables

Related parties 932 1,116Third parties 3,983 4,147

Other receivables 335 455Inventories 758 1,004Advances and prepaid expenses 3,294 3,129Claims for tax refund 371 966

Prepaid taxes 787 183Asset held-for-sale 791 593Other current assets 12 6

Total Current Assets 21,258 23,135

NON-CURRENT ASSETSLong-term investments - net 235 235Property, plant and equipment 74,897 74,619Prepaid pension benefit cost 991 1,002Advances and other non-current assets 3,817 3,802Intangible assets 1,789 1,760Deferred tax assets - net 67 71

Total Non-current Assets 81,796 81,489

TOTAL ASSETS 103,054 104,624

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Table 1 (Continued)PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL POSITION

DECEMBER 31, 2011 (AUDITED) AND MARCH 31, 2012 (UNAUDITED)(figures are presented in billions of Rupiah)

DEC 31, 2011 MAR 31, 2012

LIABILITIES AND EQUITIES

CURRENT LIABILITIESTrade payables

Related parties 838 775Third parties 7,479 6,439

Other payables 38 39Taxes payables 1,039 2,010Accrued expenses 4,790 5,344Unearned income 2,821 2,638Advances from customers and suppliers 271 325Short-term bank loans 100 170Current maturities of long-term liabilities 4,813 4,034

Total Current Liabilities 22,189 21,774

NON-CURRENT LIABILITIESDeferred tax liabilities 3,794 3,612Unearned income 242 229Long service awards provisions 287 284Post-retirement health care benefit provisions 888 821Retirement benefits obligation 1,715 1,852Long-term liabilities - net of current maturities

Obligations under finance leases 314 315Two-step loans - related party 2,012 1,941Bonds and Notes 3,401 3,423Bank loans 7,231 5,986

Total Non-current Liabilities 19,884 18,463

TOTAL LIABILITIES 42,073 40,237

EQUITY

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENTCapital stock - Rp.250 par value per Series ADwiwarna share and Series B share

Authorized - 1 Series A Dwiwarna share and79,999,999,999 Series B sharesIssued and fully paid - 1 Series A Dwiwarna shareand 20,159,999,279 Series B shares 5,040 5,040

Additional paid-in capital 1,073 1,073Treasury stock (6,323) (7,477)Difference in value arising from restructuring transactions and other

transactions between entities under common control 478 478Difference due to change of equity in associated

companies 386 386Unrealized holding gain from available-for-sale securities 47 50Translation adjustment 240 242Difference due to acquisition of non-controlling interest in subsidiaries (485) (485)Retained earnings

Appropriated 15,337 15,337Unappropriated 31,717 35,039

Total Equity Attributable To Owners Of The Parent 47,510 49,683

Non-Controlling Interest 13,471 14,704

TOTAL EQUITY 60,981 64,387

TOTAL LIABILITIES AND EQUITY 103,054 104,624

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Table 2PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE-MONTHS PERIOD ENDED MARCH 31, 2011 AND 2012 (UNAUDITED)

(figures are presented in billions of Rupiah, except per shares and per ADS)

2011 2012

REVENUES 16,706 17,796

Other Income 100 180

EXPENSESOperations, maintenance and telecommunication services (4,070) (3,916)Depreciation and amortization (3,448) (3,465)Personnel (1,909) (2,047)Interconnection (806) (995)Marketing (553) (580)General and Administrative (725) (635)Gain/(loss) on foreign exchange net 152 16Equity in net loss of associated companies (1) (1)Others net (26) (133)

Total Expenses (11,386) (11,756)

PROFIT BEFORE FINANCE (COST) INCOME AND INCOME TAX 5,420 6,220

Finance income 120 129Finance costs (405) (278)

Total Finance Costs net (285) (149)

PROFIT BEFORE INCOME TAX 5,135 6,071

INCOME TAX (EXPENSE) BENEFITCurrent (1,329) (1,698)Deferred 18 186

(1,311) (1,512)

PROFIT FOR THE YEAR 3,824 4,559

OTHER COMPREHENSIVE (EXPENSE) INCOMEForeign currency translation - net of tax (5) 2Change in fair value of available-for-sale financial assets - net of tax (3) 3

Total Other Comprehensive (Expense) Income (8) 5

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 3,816 4,564

Profit for the period attributable to:Owners of the parent 2,828 3,322Non-controlling interest 996 1,237

3,824 4,559

Total comprehensive income attributable to:Owners of the parent 2,820 3,327Non-controlling interest 996 1,237

3,816 4,564

BASIC EARNIGS PER SHAREIncome per share 143.79 172.20Income per ADS (40 Series B shares per ADS) 5,751.60 6,888.00

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Table 3PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) AND SUBSIDIARIES

STATEMENT OF FINANCIAL POSITIONDECEMBER 31, 2011 (AUDITED) AND MARCH 31, 2012 (UNAUDITED)

(figures are presented in billions of Rupiah, otherwise stated)

DEC 31, 2011 MAR 31, 2012

ASSETS

CURRENT ASSETS

Cash & cash equivalents 4,223 7,152

Accounts receivables including unbilled revenues 1,038 965

Prepayments 2,472 2,223

Others 2,122 2,010

Total Current Assets 9,855 12,350

NON-CURRENT ASSETS

Long-term investment 20 20

Fixed assets-net 46,208 45,766

Advances for fixed assets 530 526

Intangible assets-net 1,033 1,042

Prepayments Non current portion 947 965

Others 129 184

Total Non-Current Assets 48,868 48,503

TOTAL ASSETS 58,723 60,853

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable & accrued liabilities 8,466 8,162

Taxes payable 760 1,353

Unearned revenue 2,478 2,327

Current maturities of medium-term & long-term loans 2,271 1,494Total Current Liabilities 13,975 13,336

NON-CURRENT LIABILITIES

Medium-term & long-term - net of current maturities 3,486 2,781

Deferred tax liabilities 2,363 2,267

Others 523 588

Total Non-current Liabilities 6,372 5,636

EQUITY

Capital Stock - Rp1,000,000 par value

Authorized - 650,000 shares -

Issued and fully paid - 182,570 shares 183 183

Additional paid-in capital 1,505 1,505

Retained earnings 36,688 40,193

Total Equity 38,376 41,881

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 58,723 60,853

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Table 4

PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) AND SUBSIDIARIES

STATEMENT OF COMPREHENSIVE INCOME

THREE-MONTHS ENDED MARCH 31, 2011 AND 2012

(figures are presented in billions of Rupiah, otherwise stated)

2011 2012REVENUES

Postpaid 1,086 1,091

Prepaid 9,145 10,241

International roaming revenues 167 143

Interconnection revenues 771 709

Other (USO compensation & network lease) 128 114

Total Revenues 11,297 12,298

EXPENSES

Personnel 376 482

Operation & maintenance 2,598 2,621

General & administrative 202 197

Marketing 505 402

Interconnection & international charges 650 622

Cost of services 721 899

Depreciation 2,398 2,391

Others - net (116) (14)

Total Expenses 7,334 7,600

Interest income & financing charges (142) (3)

INCOME BEFORE TAX 3,821 4,695

INCOME TAX EXPENSE 965 1,190

NET INCOME 2,856 3,505

EBITDA 6,245 7,075

EBITDA Margin (%) 55 58

ROA (%) 21 23

ROE (%) 35 34

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