Corporate PresentationPT Telekomunikasi Indonesia Tbk.

Jakarta ‐ February 12, 2009

Analysts GatheringAnalysts Gathering

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Disclaimer

This document contains results of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, which would be treated as forward looking statements within the meaning of applicable law.

Forward looking statements, by their nature, involve risk and uncertainty that could cause actual results and development to differ materially from those expressed or implied in these statements.

TELKOM does not guarantee that any action, which should have been taken in reliance on this document will bring specific results as expected.

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Content

A. Environment Overview

B. Implementation Strategy in 2008

C. Business Results 2008

D. Entering for Year 2009

E. Recent Developments

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Environment OverviewYear 2008 is indicated by severe price war & untamed economy situation

■ Significantly increase in Data & Internet

■ Market Penetration already around 70%

■ Traffic Pattern Changes

■ Environment is very dynamic

■ Tariff decreased significantly

■ Price war on Cellular Business

■ Global Crisis

■ There are 11 Telco Operators

■ Regulation Changes

TELKOM’s Strategies :Strengthen the core to deliver the fundamentalExpand into adjacent to build momentum for new portfolioEmpower business units to drive growthTransform the legacy & culture

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Environment Overview

11 operators in Indonesia

9%

27%8%

56%

0-1415-1920-5960+

Population by Age

Indonesia population

■ Population: approx. 227 million +

■ Young dynamic population

Source : http://www.datastatistik-indonesia.com

PSTN

TELKOMInterconnection

TELKOMSolution

Indonesia is one of the most competitive market in the world.There are 11 operators for more than 227 Mn population with 56 % young dynamic population…

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Strategy Implementation in 2008 ..

Transformation of BusinessBusiness Initiatives CAPEX Deployment

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Strategy Implementation starting 2008Transformation of Business..

TELKOM has to transform its business to TIMES (telecommunication, Information, Media, Entertainment and Segmented based services) to maintain its competitive sustainable growth…

9.  Align Business 

Structure and Portfolio 

Management10. Transforming 

Culture

3.  Invest in Broadband4.  Integrated Enterprise 

Solutions6.  Expand into IT Services7.  Expand into Portal 

Business

Grow New Wave

Defend Traditional

1.  Optimizing FWL Legacy2.  Align Cellular‐FWA  & 

separate FWA as buss. unit8.  Streamline subsidiary 

portfolio

Delivering exceptional value our customers

5.  Integrate NGN  

Competitive Sustainable Growth

Superior Value Creation

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Strategic Initiatives in 2008 (1)

Defend Traditional

1.  Optimizing FWL Legacy2.  Align Cellular‐FWA  & 

separate FWA as buss. unit8.  Streamline subsidiary 

portfolio

Optimizing FWL LegacyDeploy 0.4 Mn Wireline lines (total 9.7 Mn lines)Optimize existing network (Speedy / broadband enable)Flat rate bill trial in Manado

Align Cellular – FWA & Separate FWA as buss. unitDeploy 6K Cellular BTS (total around 27K BTS)Tower collocation Telkomsel & FWA around 1.5KJoin facilities point of sales (GraPARI & Plasa TELKOM)Establishing Flexi Mandiri

Streamline subsidiary portfolioConsolidate VSAT businessRe-define subsidiaries portfolio

- Establish Tower Business in Daya Mitra- TII as vehicle for international services and

strategic investment in overseas- Metra as a vehicle for multimedia, content

and portal business- PIN for distribution and remote access

Optimizing, synergizing & streamlining is a must not a choice and already implemented…

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Strategic Initiatives in 2008 (2)

3.  Invest in Broadband4.  Integrated Enterprise 

Solutions6.  Expand into IT Services7.  Expand into Portal 

Business

Grow New WaveInvest in Broadband

Deploy 1.6 Mn Speedy lines (total 1.8 Mn lines) Metro Ethernet 800 - 900 nodesBackbone & IP Backbone expansion

Integrated Enterprise SolutionContent & Application business thru SigmaStrengthening banking & financial solution (Himbara)TELKOM as a single IT provider super block Plasa Indonesia

Expand into IT ServicesJoint Marketing with NCSAcquisition Sigma through Metra

Expand into PORTAL BusinessEstablishing subsidiaries focusing in PORTALINDIGO

New wave investments and initiatives begin to deliver value for the company and compensate decreasing in legacy businesses…

In 2008, declining of legacy business were compensated by increasing of new wave businesses, in which the growth of revenues YoY around 40% - 50%.

As of December 31, 2008 

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CAPEX Deployment in 2008

Deployment :Add Flexi BTS= 2.143, Total Flexi BTS= 4.054Add Speedy lines =1.6 M, Total Speedy lines= 1.8 MnAdd Wireline lines = 0.4 Mn, Total Wireline lines = 9.7 MnAdd Cellular BTS = 6K, Total Cellular BTS = 27KMetro Ethernet 800 ‐ 900 nodes Backbone & IP Backbone expansion

Total CAPEX = USD 2.0 BillionTELKOM  ± 30%Subsidiaries  ± 70%

Continuous investments is aimed to increase capacities / coverage and quality of service as well as to provide fundamental for new wave businesses…As of December 31, 2008 

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Business ResultsTELKOM Subsidiaries ..

PT. Telekomunikasi Seluler

65% ownership(Cellular)

PT. DayamitraTelekomunikasi

99.99% ownership(Fixed Wireline - Kalimantan)

PT. Graha Sarana Duta99.99% ownership

(Property & Construction)

PT. MultimediaNusantara

99.99% ownership(Multimedia)

PT. IndonusaTelemedia

98,75% ownership(Multimedia)

PT. InfomediaNusantara51% ownership

(Telephone Directory & Call Center)

PT. Pramindo IkatNusantara

99.99% ownership(Fixed Wireline - Sumatra)

PT. Pasifik SatelitNusantara

22.38% ownership(Satellite Transponder)

PT. Citra Sari Makmur25% ownership

(VSAT)

PT. Pembangunan Telekomunikasi

Indonesia2.11% ownership

(Construction & Maintenance)

PT. Batam BintanTelekomunikasi

5% ownership(Fixed Wireline – Batam & Bintan)

PT. Patra TelekomunikasiIndonesia40% ownership

(VSAT)

Consolidated (8) Unconsolidated (5)

PT. Telkom InternationalIndonesia

99.99% ownership(Investment & Finance)

Indirect Ownership : Sigma, Finnet, Scicom, AWI Finance B.V, Balebat

As of December 31, 2008 

TELKOM Position Subsidiaries not only as portfolio but also as vehicle for providing TIMES Services…

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Business Results

CellularFixed Wireline

Fixed Wireless

Data CommBroadband

TELKOM 99%BBT 

Telkomsel 46%IndosatExcel Hutchinson (3)AxisSampoernaMobile‐8

TELKOM 59%IndosatBakrie Smart

8.6 M8.6 M 22 M22 M 142 M142 M 3,3 T3,3 T~ 904 K~ 904 K

TELKOM  52% ISAT Group IndosatIM2 Lintas ArtaExcel 

ADSL/Speedy 850 KWireless (HSDPA)          ~ 150K (Telkomsel)Others : Cable etc.

Penetration

12% 62%Penetration

< 1 %Penetration

Fixed Lines

Revenue Share

Data Comm

Total Industry

As of December 31, 2008 

52%

Amid intensifying competition, TELKOM continues to be a market leader in all product line businesses…

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241

850

2007 2008

47.9

65.3

2007 2008

Business ResultsOperational Highlights

6.4

12.7

2007 2008

8.7 8.6

2007 2008

Cellular

Subsc in milion

Fixed Wireless

Subs.in million

Speedy

Subs.in ‘000

Fixed Wireline

Subs.in million

▲36%

▼0.6%

▲100% ▲253%

Market Share .. 

∼ 46% ∼ 99% ∼ 59% ∼ 46%

Fixed Lines

As of December 31, 2008 

..in almost all business segments, TELKOM has a significantly growth story

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Business ResultsFixed Wireless Business..

551

876

2007 2008(in bn seconds)

with 4,054 BTS (deployment in 2008 = 2.143 BTS)

TELKOM FlexiFixed Wireless

▲56%

1,911

4,054

2007 2008

▲112%

(unit)

6.4

12.7

2007 2008

▲100%

Subscribers

(in million)

MoU BTS

2.2

6.4

2007 2008

▲191%

Net Add

As of December 31, 2008 

Customer bases have significantly growth caused by effectiveness marketing and CAPEX deployment in 2008…

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Business ResultsCellular Business ..

1,512

5,412

2007 2008

(in bn seconds)

▲257%

20.9

26.9

2007 2008

▲29%

(in .000 unit )

47.9

65.3

2007 2008

▲36%

Subscribers

(in million)

MoU BTS

12.317.4

2007 2008

▲42%

Net Add

As of December 31, 2008 

Cellular tariff decreasing drastically in 2008, however to the same extent has been compensated with significant growth in MoU…

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Human Capital ..

Total TELKOM Group Employees at the end of 2008 more than 30 K (TELKOM only 25K)Total ERP 2002 – 2007 more than 10 KTotal ERP Cost 2002 – 2007 = Rp. 4.2 TProjection total saving cost 2007 – 2012 = Rp. 1.7 TERP target in 2008 (implementation in 2009) :

Total employees = 600 – 700Total budget = ± Rp.500 Bn

Average employees growth annually = - 6%

TELKOM has been continuing in improving of employee competencies and decreasing the number of employees continuously to meet the competition era…

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FBIP (Fixed Business Improvement Program)…

■ To maintain (retain) current customers with various segmentation

■ Different treatment for different segment

Objectives

■ Based on existing buckets of subscribers spending level

■ Re‐grouping subscribers level into manageable groups

Strategy (Quick Win Strategy)

■ Declining in number of subscribers and total revenues

■ Declining in spending level of certain segmentation

■ Majority subscribers are at low spending level and generate major revenue contribution

Recent Conditions

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Entering for Year 2009 CAPEX and Infrastructure Deployment…

Deployment :Legacy

O Flexi BTS = 1.1K – 1.3KO Wireline lines = 200K – 250KO Capacity to meet demand & selected coverage for Cellular BTS

New waveO Speedy lines = 300K – 500K and Metro Ethernet 150 – 200 nodesO Backbone Sulawesi-Kalimantan and Jasuka expansionO AAG (Asia American Gateway)O Telkom-3 Satellite contractO Tera Router IP backbone and IPTVO GPON, WiMax and SDP (Service Delivery Platform)

Total CAPEX = USD 2.1 BillionTELKOM  ± 30%Subsidiaries  ± 70%

We focused on CAPEX deployment in new wave business to continue growingcontribution of these business to TELKOM total revenues …

Net add:Flexi 50% - 60% of total Net Add FWA industry Cellular 50% of total Net Add 3 biggest players Speedy 700K – 900K subscribers

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Recent Developments (1)

■ will launch TelkomGroup Portal Business by 2009 ■ Initiate a Partnership to develop e‐commerce business in Indonesia

Metra

■ Due to global financial crisis, Telkomsel has improve fundamental company thru network reconfiguration and accelerate network development and to improve network quality for optimizing business portfolio (T‐Cash, Telkomsel Merah Putih, KartuAs Fress)

■ Set up BTS hydro fuel cell due to deficit of energy■ Implemented Near Real Time Roaming Data Exchange (NRTRDE) to 

minimize fraud risk on Telkomsel international roaming■ As the selected bidder of USO I, II, III, VI and VII Project■ Blackberry bundling program■ Seamless roaming by Telkomsel to some countries■ Partnership for distribution IPhone from Apple

Telkomsel

■ DMT to be the main vehicle for tower business in the group ■ DMT to be the number one Tower Company in Indonesia through 

tower (Flexi, Telkomsel) business consolidation.

Mitratel (DMT) Transformation & Tower Business Consolidation

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Recent Developments (2)

■ Focus on internal restructuring of Flexi through set up Flexi Mandiri (2009)■ Consolidation of FWA business (2009‐2010) to optimize national resources 

as well as giving more values to customers■ Synergize Flexi and cellular businesses to manage its competitive 

advantages and maintain its position in various market

Set Up Flexi Mandiri and Consolidate FWA Business

■ Share Buy Back Program until Dec 31, 2008 = 490.574.500 shares ■ Total amount = IDR 4.3 Bn

Financial

■ TELKOM and Fujitsu signing contract for Submarine Optic Deployment connecting JaKaSuDeMa

■ Joint facilities (tower): Telkomsel & flexi■ Upgrade speed of speedy to 1 Mbps■ Metro Ethernet service in East Java & Sumatra■ Signing of SLA between Telkom and Teleglobe■ Kick Off Signaling Connection Control Part (SCCP) Transport & ANSI 

Conversion Teleglobe■ Cost based interconnection scheme implementation started 2008

Network

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Recent Developments (3)

■ Low cost handset bundling launched on April 2008 

■ Low On Net Call for National wide and SMS On Net

■ Free On Net Flexi in area Jakarta, Banten & West Java

■ Speedy unlimited in Jakarta area

■ Speedy prepaid

Marketing

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Thanks for your attention..

Any further questions ?

Contact Address :Investor Relations & Corporate Secretary DepartmentGrha Citra Caraka 5th flJl. Jend. Gatot Subroto Kav. 52Jakarta, 12710IndonesiaTel  : +62‐21‐5215109Fax : +62‐21‐5220500Email : investor@telkom.co.id

http://telkom‐indonesia.com

Contact Address :TELKOMSEL Head OfficeWisma Mulia 12th flJl. Jend. Gatot Subroto Kav. 42Jakarta, 12710IndonesiaTel  : +62‐21‐5240811Fax : +62‐21‐52906112Email : investor@telkomsel.co.id

http://www.telkomsel.com