PT. Telekomunikasi Indonesia, Tbk

The First Quarter 2011

2

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 does not guarantee that any action, which should have been

taken in reliance on this document will bring specific results as expected.

Telkom Indonesia

in Brief

4

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

7,281,510,150

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%Public

47.53%

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 CenterServices

66

Telkom Indonesia Business Portfolio – TIMEOur 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

OLO (Other Licensed Operators)

7

Telkom Indonesia Backbone Network

BANDA ACEH

PALEMBANG

DENPASAR

KUPANG

DLI

BDR LAMPUNG

MANADO

FAKFAK JAYAPURA

PALU

PBR

PONTIANAK

BANDUNG

AMBON

SORONGBALIKPAPAN

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 owns and operates the largest national network backbone.

8

Telkom Indonesia Human Resources

Telkom as a parent company

Subsidiaries6.4 7.1 5.2 5.6 5.7

27.7 25.425.0 23.2 21.1

34.032.5

30.228.8

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.

in (‘000)

Telco Industry in

Indonesia

10

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.

Fixed

Wireline

9%

27%8%

56%

0-1415-1920-5960+

Population by Age

Indonesia population

� Population: approx. 237 million +

� Young dynamic population approx. 56%

Source : internal data as of Mar 31, 2011

11

PENETRATION

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

TELKOM

MARKET SHARE

± 8.3 mnTOTAL INDUSTRY ± 33 mn ± 213 mn ± 9.2 mn

± 4% ± 14% ± 90% ± 4%

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%

(sim card base)

Indonesia’s Cellular Subscribers

12

Telkomsel is leader in sustainable product innovation, strong brand products and

widest network coverage.

82

38

33

22

99

30

39

46Indosat

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%

15%

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%

1%

14

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%

Fastnet13%12%

Source : internal data as of Mar 31, 2011

15

Mobile Broadband SubscribersSocial Networking and information searching also drives mobile broadband growth...

2,139

890

531100

62%56%

1Q2010 (in thousand) 1Q2011 (in thousand)

Indosat

3G & IM2 Broom

15%23%

Telkomsel

Flash

Smart10%14%

XL-Axiata10%3%

Source : internal data as of Mar 31, 2011

16

Domestic Big Four Operators Revenues(in million USD)

Source: Bloomberg

5,599

7,556

1,336

2,180

511

1,922

66304

2006 2007 2008 2009 2010

Telkom

Indosat

XL-Axiata

Bakrie Telecom

Business Results

(Operational & Financial)

18

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%

As of March 31, 2011, we remained the largest national licensed provider of

cellular services in Indonesia with around 46% market share.

19

simPATI Double TalkmaniaThis program was offered with a daily

registration of Rp2,000 (day time) and

Rp2,500 (night time).

simPATI FreedomA New package of free

minutes called “simPATI

Gratis Nelpon Berjam-

jam” (free talk for several

hours)

Kartu As

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.

Cellular Promo

20

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.

We dominated the broadband business in Indonesia with approximately

67% market share.

21

Broadband Promo

Home Speedy Home, offered 5 packages at various

speed starting from 384Kbps up

to 3Mbps and could be accessed

by multi users through Wi-Fi

modem

Rp50K Flash Unlimited, with maximal speed of 384Kbps

Mobile BroadbandFixed Broadband

Bundling Speedy-Flash,…now, we present to answer the

needs of our customers who want to

continue connections to broadband

internet access network, either in a

stationary (fixed) using Speedy and in

moving conditions (mobile) using

Telkomsel Flash.

22

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

1,4161,530

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

Speedy Market Share

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

2,1392,976

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% 10%9%

1Q10 2Q10 3Q10 4Q10 1Q11

Mobile Broadband Market Share

Telkomsel Flash

Indosat 3G & IM2 Broom

XL-Axiata

24

Fixed WirelineFlat 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%

-9%

25

Fixed Line Voice Promo

Fixed WirelinePoint reward program to retain our customers.

Fixed Wireless

“Flexi Bebas Bicara” is our Flexi free

talk with a tariff Rp0 in certain areas.

26

Towers

Own 2,500Towers

By end of 2011:

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

Operate 3,500Towers owned by others

TELKOM: 1,300 units

Telkomsel: 2,200 units

Tenancy Ratio� Target > 2x

27

Financial HighlightsOur strong financial position enables 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%

Note : *) As Restated, Please refer to our Consolidated Financial Statements Note 2p and 2s.

**) Adjusted EBITDA is defined as operating income before depreciation and amortization.

28

Income Statement (1/2)

Revenue contribution to total revenues

Total revenues

Rp16.7 Tn

41%

29%

20%

40%

33%

18%

2% 3%6%

2%2%5%

Ce l l u l a r Da t a , I nt e r ne t

& I T

Fi x e d Li ne I nt e r c on Ne t wor k Ot he r

1Q10 1Q11

6.7 6.8

4.8 5.5

3.3 2.9

1.1 0.80.3 0.3 0.3 0.4

(in Rp trillion)

In 1Q11, Data, Internet & IT services revenues contributed 33% to total revenues

(growth 14% YoY). SMS included in this revenue amounted Rp3.1Tn

29

Income Statement (2/2)

Expense contribution to total expenses

Total expenses

Rp11.5 Tn

34% 34%

17%

35%30%

17% 6% 5% 4%7% 4% 6%

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

1Q10 1Q113.7 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)

Expense was manageable, G&A expenses has decreased by 15%15% YoY

30

Expenses Trend

Q4/10 - Q1/10 Q1/10 - Q2/10 Q2/10 - Q3/10 Q3/10 - Q4/10 Q410 - Q1/11

Depr & Amort 5% -1% -2% -1% -3%

Personnel -10% -15% 23% 7% -7%

O&M -7% 11% 0% -3% 2%

G&A -4% -13% 17% 3% -18%

Interconnection -17% 24% -6% 4% 0%

Marketing -55% 32% 15% 47% -22%

31

Capital Expenditure (Capex)

34%26%

53%

72%

2,914

2,288

1Q10 1Q11

TELKOM

Rp786 Bn

TELKOMSEL

Rp1,210 Bn

Other Subsidiaries

Rp292 Bn (13%)

Capex Payment

TELKOM Capex (Rp Bn)

TELKOMSEL Capex (Rp Bn)

4%3%

92%91%

763 786

1Q10 1Q11

Others

New Wave&Infra

Legacy

50%47%

40%

43%

2,085

1,210

1Q10 1Q11

others

cov & quality

capacity

32

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.

(in Rp Bn )

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)

33

34

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:

Shares Buy Back IV constitutes one of the

Company’s efforts to improve its capital

management, which, if implemented, shall

continuously increase the Earnings per share

(EPS), Earnings per ADR (EPADR) and Return on

Equity (ROE).

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

Any further questions?