StdPres Telkom 1Q 2011 Results 10Jun11 final

PT. Telekomunikasi Indonesia, Tbk

Disclaimer

This document contains financial conditions and result of operation, and may also

contain certain projections, plans, strategies, and objectives of the Company, which

would be treated as forward looking statements within the meaning of applicable

law.

Forward looking statements, by their nature, involve risk and uncertainty that

could cause actual results and development to differ materially from those

expressed or implied in these statements.

Telkom Indonesia Ownership

Telkom Indonesia is the largest telecommunication company and network provider in Indonesia, majority owned by the Government of Indonesia.

(Total shares = 20,159,999,280, including 1 Dwiwarna share series A)

As of 31 March 2011, Market cap :

Rp148.2Tn, or 4.52% of total market cap. at IDX Indonesia

Telkom Indonesia is listed at Indonesia Stock Exchange (IDX), New

York Stock Exchange (NYSE), London Stock Exchange (LSE) and also Publicly Offering Without Listing (POWL) in

Japan. as of March 31, 2011

Government

10,320,470,712

Domestic Investors

2,067,443,918

52.47%

10.51%

37.02%

Treasury Stock

490,574,500

Foreign Investors

International businesses

5

Telkom Indonesia and Subsidiaries

(ownership)

DIRECT OWNERSHIP MORE THAN 50%

DIRECT OWNERSHIP BETWEEN 20-50%

INDIRECT OWNERSHIP

Government 52.47%

Government

52.47% _47.53%Public

Public

47.53%

65% 100% 100% 100% 100% 100% 100% 99.9%

40% PATRAKOM 25% CSM 22.38% PSN 100% MOJOPIA 100% TELKOMSIGMA 75% ADMEDIKA 60% FINNET 51% MELON 100%

TII Pte Ltd, SQ

29.71%

SCICOM, MS

65%

BALEBAT

100%

TII Ltd, HK

Cellular IME CPE Tower/

Infrastructure

Pay-TV Call Center/ Yellow Pages

Property Management

VSAT VSAT Satellite

Printing

Portal _IT/BPO BPO Payment

Gateway Online Music Store Telecom Telecom Call Center

Telkom Indonesia Business Portfolio – TIME

Our product portfolio is outlined by the following categories:

Telecommunication

POTS FWA

Mobile/Cellular International Services Broadband

Network Services Tower

Information

Premise Integration Services Value Added Services, Managed App & Performance/IT Outsourcing E-Payment

IT enabler Services

Media & Edutainment

Media : PayTV Content / Portal

Indonesia

Retail

Wholesale

International Investment

CONSUMER SME LARGE ENTERPRISE

7

Telkom Indonesia Backbone Network

BANDA ACEH PALEMBANG DENPASAR KUPANG DLI BDR LAMPUNG MANADO FAKFAK JAYAPURA PALU PBR PONTIANAK BANDUNG AMBON SORONG BALIKPAPAN JAKARTA BATAM MATARAM PAREPARE SAMARNDA SINGAPORE PENANG SATUN SEMARANG BANJARMASIN MAKASAR SURABAYA ENDE MEDAN Songkhla TIS (Thailand) SANGATA BATURAJA DMCS, BENGKULU WAINGAPU KETAPANG PKL.BUN AAG (Hongkong, USA)

JAMBI

TERNATE

IP Core Link : 170 GBps

-8 pair Core Router 8 x 2 x 10 GBps

& 1 x 10 GBps

IP Core Link : 170 GBps -8 pair Core Router

8 x 2 x 10 GBps & 1 x 10 GBps International Link :

34.5 GBps International Link :

34.5 GBps

TIMIKA

MERAUKE

Main IP Core Link : 465.6 GBps

-3 pair Terra Router 3 x 2 x 77.6 GBps

Main IP Core Link : 465.6 GBps -3 pair Terra Router

3 x 2 x 77.6 GBps

AAG Consortium : Development of

Asia-Amerika Internet Gateway 1.92 Tbp/s Capacity

Telkom Indonesia Human Resources

Telkom as a parent company

Subsidiaries

6.4 7.1 _{5.2 5.6 5.7}

27.7 _25.4

25.0 _23.2

21.1

34.0

32.5

30.2

28.8

26.8

2006 2007 2008 2009 2010

The decreasing size of our workforce reflects new TIME business portfolio.

In five years, our parent company workforces decreasing by 6,520

employees through normal pension and early retirement program.

Indonesia’s Telco Industry Landscape

There are 10 operators serving more than 237 Mn population, in which approx. 56% of them are young dynamic population.

Wireline

9% 27% 8%

56%

0-14 15-19 20-59 60+ Population by Age

Indonesia population

Population: approx. 237million + Young dynamic population approx. 56%

11

PENETRATION

Telco Penetration

…and Indonesia’s wireless penetration is now approaching a saturation stage.

TELKOM

MARKET SHARE

± 8.3 mn

TOTAL INDUSTRY ± 33 mn ± 213 mn ± 9.2 mn

Source : internal market research as of March 31, 2011 Note : Indonesia population 2011: approx. 237 million

Fixed Wireline

Fixed Wireless (limited mobility)

Cellular (full mobility)

Broadband

±

99%

±

56%

±

46%

±

67%

Indonesia’s Cellular Subscribers

Telkomsel is leaderin sustainable product innovation, strong brand products and widest network coverage.

82

38

33

22

99

30 39

46

Indosat

XL-Axiata

Others

Telkomsel

Source : internal data as of Mar 31, 2011

1Q2010 (in Mn)

1Q2011 (in Mn)

22% 46%

19%

13%

21% 46%

18%

Indonesia’s Fixed Wireless Access (FWA)

Subscribers

13

FWA market is dominated by two operators with Flexi as the leader.

16

11

1

19 14

Esia

StarOne

Hepi

Flexi

Source : internal data as of Mar 31, 2011

1Q2010

(in Mn)

1Q2011

(in Mn)

56% 41%

1%

1% 39%

57%

2%

283

1,791

200 1,283

Fixed Broadband Subscribers

1Q2010

(in thousand)

1Q2011

(in thousand)

Social Networking and information searching drives fixed broadband growth...

Speedy

82%

80%

Fastnet

13%

12%

15

Mobile Broadband Subscribers

Social Networking and information searching also drives mobile broadband growth...

2,139

890

531 100

62% 56%

1Q2010

(in thousand)

1Q2011

(in thousand)

Indosat 3G & IM2 Broom

15% 23%

Telkomsel Flash

Smart 10%

14%

XL-Axiata 10% 3%

Domestic Big Four Operators Revenues

(in million USD)

Source: Bloomberg

5,599

7,556

1,336

2,180

511

1,922

66 304

2006 2007 2008 2009 2010

Telkom

Indosat

XL-Axiata

Business Results

Cellular Business

Cellular

1Q10 1Q11 Growth (%)

Subscribers (‘000) 81,950 99,365 21%

BTS (unit) 32,243 37,830 17%

MoU (Bn minutes) 28 43 53%

ARPU – blended (Rp’000) 43 37 14%

Total Cellular Biz Revenue (Rp Bn) 10,775 11,297 4.8%

19 This program was offered with a daily

registration of Rp2,000 (day time) and Rp2,500 (night time).

A New package of free minutes called “simPATI Gratis Nelpon Berjam-jam” (free talk for several hours)

Rp0/minutes for the first 30 seconds and Rp10/30 seconds afterward from 00:00-16.59 hours for new customers that activate the starter pack from December 22, 2010.

Broadband Business

1Q10 1Q11 Growth (%)

Fixed broadband/Speedy:

Subscribers (‘000) 1,283 1,791 40%

Revenue (Rp Bn) 830 964 16 %

ARPU (Rp‘000) 233 187 20%

Mobile broadband/Flash:

User (‘000) 2,139 4,336 103%

Revenue (Rp Bn) 206 347 68%

ARPU (Rp‘000) 36 29 19%

We are implementing all IP-based next generation networks, which shifting to leaner operations with a strong focus on managing the customer experience as well as

developing multi-play and convergent services.

21

Broadband

Promo

! "

offered 5 packages at various speed starting from 384Kbps up to 3Mbps and could be accessed by multi users through Wi-Fi modem

# $ % & "

with maximal speed of 384Kbps

Mobile Broadband

Fixed Broadband

' ( !) %"

Key Drivers:

Replace copper cable with fiber optic.

Network modernization, MSAN/GPON allowing speed up to 100Mhz.

New domestic backbone, allowing Indonesia to have higher speed of data connection.

International backbone, allowing cheaper internet access at higher speed.

The launch of IPTV and fixed mobile broadband bundling to boost the sales.

Fixed Broadband

1,416 1,530

1,649 1,791

2Q10 3Q10 4Q10 1Q11

33% 29%

30% 27%

2Q10 3Q10 4Q10 1Q11

Strong growth and better network quality…

Speedy Subscribers (‘000) Contribution to Fixed Line Revenue

23

Key Drivers:

HSDPA will be available in 40 cities by end of 2011 from 25 cities as of December 2010.

Fixed backbone, supporting higher speed data connection.

Dedicated international backbone, allowing cheaper internet access at higher speed. Fixed-mobile broadband bundling gives more flexibility to customers.

Mobile Broadband

9% 10%

10% 13%

15%

1Q10 2Q10 3Q10 4Q10 1Q11

2,139

2,976

4,278 _3,796 4,336

1Q10 2Q10 3Q10 4Q10 1Q11

Widest coverage supported by high capacity of backbone and international bandwidth, gives convenience on the move for mobile broadband customers…

Mobile Broadband to Cellular Group Revenues

Flash Subscribers (‘000)

64% 58% 56% 60% 62% 15% 23% 23% 16% 15% 8% 3%

3% _{9% 10%}

1Q10 2Q10 3Q10 4Q10 1Q11 Mobile Broadband Market Share

Telkomsel Flash

Indosat 3G & IM2 Broom

Fixed Wireline

Flat rate program combined with customer loyalty program slowing down the churn rate…

Key Drivers:

Flat rate program that was launched in February 2009 is able to slow down the speed of fixed line churn rate.

Customer loyalty program is carried out with point rewards.

Fixed broadband growth also helps defending the fixed wireline telephone.

8,397

8,334

8,303

8,333

2Q10 3Q10 4Q10 1Q11

Wireline Subscribers (‘000)

18.9%

18.2% 19.0%

19.2%

2Q10 3Q10 4Q10 1Q11

Contribution to Total Revenues

Fixed line Revenues (Rp Bn)

-15%

25

Fixed Line

Voice Promo

*

Point reward program to retain our customers.

*

Towers

Own 2,500

Towers

By end of 2011:

Through Mitratel, our wholly-owned subsidiary, we leverage our tower asset…

Operate 3,500

Towers owned by others TELKOM: 1,300 units

Telkomsel: 2,200 units

27

Financial Highlights

Our strong financial positionenables us to pursue strategic investment to enhance both the capacity and quality of our core network capability and infrastructure.

(in Rp Tn )

Financial Position FY10 1Q11 Growth (%)

Total Assets 99.8 100.7 1%

Total Liabilities 43.3 40.5 7%

Total Equity (including non-controlling

interest) 56.4 60.2 7%

Debt EquityRatio/DER (%) 36.8 31.8 5%

Gearing/Net Debt to Equity (%) 23.3 13.4 10%

Income Statement 1Q10 * 1Q11 Growth (%)

Operating Revenues 16.4 16.7 2%

Operating Expenses 11.0 11.5 4%

EBITDA** 9.1 8.6 5%

EBITDA Margin (%) 55 52 4%

Income for the period attributable to

owner of the parent 2.8 2.8 2%

Income per Share (Rp) 142 144 2%

Income Statement

(1/2)

Revenue contribution to total revenues

Total revenues

Rp16.7 Tn

4 1%

2 9 %

2 0 % 4 0 %

3 3 %

18 %

2 % 3 % 6 %

2 % 2 %

5 %

C e l l u l a r D a t a , I n t e r n e t & I T

F i x e d L i n e I n t e r c o n N e t wo r k Ot h e r

1Q10 1Q11

6.7 6.8

4.8 5.5

3.3 2.9

1.1 0.8

0.3 0.3 0.3 0.4

(in Rp trillion)

29

Income Statement

(2/2)

Expense contribution to total expenses

Total expenses

Rp11.5 Tn

3 4 % 3 4 %

1 7 % 3 5 %

3 0 %

1 7 % _{6 %}

5 % 4 %

7 % 4 % _{6 %}

O&M Depr & Amor t Per sonnel Inter con G&A Mar keti ng

1Q 10 1Q 11

3.7 4.1 _{3.7 3.4}

1.9 2.0 _{0.7 0.8}

0.6 0.5 _{0.4 0.7}

(in Rp trillion)

Expenses Trend

31

Capital Expenditure (Capex)

34% 26% 53% 72%

2,914

2,288

1Q10

1Q11

TELKOM # +,- ' TELKOMSEL

# ". '

Other Subsidiaries

# . . ' / 0 1

Capex Payment

TELKOM Capex

(Rp Bn)

Consolidated Debt

19,595 _19,160

76% 83%

18% 11%

6% 6%

1Q10 1Q11

IDR/Rupiah U.S Dollar Japanese Yen

Our strategy in facing foreign exchange fluctuation is to provide natural hedging

through maintaining cash and cash equivalents of around 50% of current maturity and

average payment of Capex/Opex for the next 12 months.

Dividend Pay Out

AGMS held on May 19, 2011 decided Dividend Pay Out ratio of 55%, a 5% increase compared to last year.

Telkom is one of Top 10 Largest Dividend Payers in South East Asia 2006-2010 (Research by Alpha South East Asia Magazine, March 2011)

Share Buy Back IV

On AGMS 19 May 2011

Shareholders approved the Company’s Share Buyback Program IV on the terms and allocate

fund amounting to

Rp5,000,000,000,000,-reserved, over a maximum period of 18 months following the date of the General Meeting of Shareholders.

Background:

The underlying business of the Company continues to demonstrate fast growth and generate significant cash flows;

The Company has low leverage compared to regional peer companies;

Increasing shareholder value by returning excess cash to its shareholders through a repurchase of shares.

As of 31 December 2010,

the Company has repurchased

490,574,500 shares of Series B Shares equivalent to 2.43% with a total purchase amounted to Rp4.2 trillion.

Objectives:

Contact Address :

Investor Relations

Grha Citra Caraka 5th_floor

Jl. Jend. Gatot Subroto Kav. 52 Jakarta, 12710

Indonesia

Tel : +62-21-5215109

Fax : +62-21-5220500

Email : investor@telkom.co.id Website: www.telkom.co.id