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 CURRENT ASSETS Cash and cash equivalents Trade receivables - net of allowance for doubtful accounts - Third parties - Related parties Other receivables - Third parties - Related parties Inventories Prepaid taxes Advances and prepayments Derivative receivables Other assets

31/12/2006

31/12/2007

31/12/2008

31/03/2008

31/03/2009

2a, 2c,3,22b

587,176

805,769

1,170,203

610,327

591,842

2e 4 2c,22c

187,396 16,902

256,997 51,404

835,468 68,292

366,977 65,213

347,638 83,001

2c,22d 2f 2n,21a 2c,5,22j 2l,24 2g,6

3,767 6 35,378 185,535 167,095 148

2,153 58,961 283,891 219,905 230

13,450 21,368 127,633 754,860 378,260 333,324 16,705

3,008 94,277 374,244 368,431 67,405 276

2,502 2 105,594 816,627 674,798 121,489 80,279

1,183,403

1,679,310

3,719,563

1,950,158

2,823,772

10,462,010 991,162

15,810,223 125,723 1,185,299

23,179,767 625,678 1,386,705

17,458,147 147,666 1,222,551

24,062,337 591,968 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

8 2c,22e 2n,21b

1,664,884 6,621 46,220

2,674,050 3,628 96,035

3,250,610 28,253 100,887

3,243,412 8,179 75,501

2,919,508 38,421 12,462

9 2c,22f 2d 2l,24 2j,10 2j,11 2k,12

325,695 256,787 -

511,968 4 410,418 40,000 3,283,434

428,601 1,110,180 547,500 730,548 -

355,711 579,695 1,921,700 400,000 -

337,069 959,238 3,011 1,528,783 -

2,300,207

7,019,537

6,196,579

6,584,198

5,798,492

282,170 347,153 5,345,185 42,155 38,511

295,803 2,526,370 613,729 3,814,082 66,228

296,944 14,563,676 553,629 2,879,248 36,828 76,912

232,049 4,619,910 695,756 3,765,662 23,992 72,232

413,152 15,434,405 454,545 2,960,317 65,497 83,416

6,055,174

7,316,212

18,407,237

9,409,601

19,411,332

709,000 2,691,684

709,000 2,691,684

709,000 2,691,684

709,000 2,691,684

709,000 2,691,684

880,510

100 1,064,022

200 907,013

100 1,383,939

200 600,945

4,281,194

4,464,806

4,307,897

4,784,723

4,001,829

12,636,575

18,800,555

28,911,713

20,778,522

29, 211,653

Total current assets NON-CURRENT ASSETS Fixed assets - net of accumulated depreciation Derivative receivables Other assets

2h,2m,7 2l,24 2c,2i, 2g,6,22j

CURRENT LIABILITIES Trade payables: - Third parties - Related parties Taxes payable Other payables and accruals - Third parties - Related parties Deferred revenue Derivative payables Short-term loans Current maturity of long-term loans Current maturity of long-term bonds Total current liabilities NON-CURRENT LIABILITIES Trade payables - third parties Long-term loans Deferred tax liabilities Long-term bonds Derivative payables Provision for employee benefits

8 2j,11 2n,21d 2k,12 2l,24 2o,13a

Total non-current liabilities 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 Capital surplus Retained earnings - Appropriated - Unappropriated Total equity TOTAL LIABILITIES AND EQUITY

14 2k,14 16

The accompanying notes form an integral part of these consolidated financial statements. Page 1

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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)

Notes

2006 (1 year)

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

REVENUE Gross revenue Discount Interconnection and telecommunications service charges Revenue net of interconnection and telecommunications service 2c,2d,18 charges 22g,22h,22i OPERATING EXPENSES Depreciation expenses Infrastructure expenses Sales commission and marketing expenses Salaries and employee benefits Supplies and overhead expenses Others

2d 2h,7 19 20, 22k 2c,2o,13 22l 2c,22j 2i

OPERATING INCOME OTHER (EXPENSES)/INCOME Interest expenses Interest income Foreign exchange gain/(loss) - net Gain on finance lease transaction Others

2l,2m 2g, 6 21e

INCOME/(LOSS) BEFORE INCOME TAX INCOME TAX (EXPENSE)/ BENEFIT - Current - Deferred

6,466,057 (688,400)

8,364,711 (375,192)

12,155,991 (94,784)

2,654,485 (31,517)

2,925,867 (23,664)

(1,095,982)

(1,529,749)

(2,296,381)

(554,336)

(498,347)

4,681,675

6,459,770

9,764,826

2,068,632

2,403,856

1,508,020 613,351

1,705,410 1,076,676

3,335,287 1,988,575

626,678 361,463

878,251 739,935

653,707

896,049

1,352,689

291,890

231,115

494,408 366,682 17,646

573,907 403,915 44,031

722,515 569,527 43,244

163,831 117,511 10,811

178,149 141,232 9,895

3,653,814

4,699,988

8,011,837

1,572,184

2,178,577

1,027,861

1,759,782

1,752,989

496,448

225,279

(416,203) 51,668 344,794 (5,698)

(694,388) 50,749 (204,362) (393,749)

(1,122,294) 27,649 (332,151) (401,402)

(204,092) 7,766 208,569 (42,999 )

(383,115) 16,820 (643,498) 333,149 46,623

(25,439 )

(1,241,750)

(1,828,198)

(30,756 )

(630,021)

(404,742)

1,002,422

2n,21c 2n,21c

NET INCOME/(LOSS)

518,032

(75,209)

465,692

(2,031) (348,508)

(675) (266,576)

60,100

(63,748) (82,027 )

(410) 99,084

(350,539)

(267,251)

60,100

(145,775)

98,674

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)

The accompanying notes form an integral part of these consolidated financial statements. Page 2

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 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)

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 Net income for the year Balance as at 31 December 2006 Net income for the year

709,000

2,691,684

-

228,627

3,629,311

-

-

-

651,883

651,883

709,000

2,691,684

-

880,510

4,281,194

-

-

-

250,781

250,781

Dividends

2q,15

-

-

-

(67,169)

(67,169)

Appropriation to statutory reserve

16

-

-

100

(100)

-

709,000

2,691,684

100

1,064,022

4,464,806

-

-

-

(15,109)

(15,109)

2q,15

-

-

-

(141,800)

(141,800)

16

-

-

100

(100)

-

709,000

2,691,684

200

907,013

4,307,897

709,000

2,691,684

100

1,064,022

4,464,806

-

-

-

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

-

-

-

(306,068)

(306,068)

709,000

2,691,684

200

600,945

4,001,829

Balance as at 31 December 2007 Net loss for the year Dividends Appropriation to statutory reserve Balance as at 31 December 2008 BALANCE AS AT 31 MARCH 2008 AND 2009 Balance as at 31 December 2007 Net income for the period

Net loss for the period Balance as at 31 March 2009

The accompanying notes form an integral part of these consolidated financial statements. Page 3

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS 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) Notes CASH FLOWS FROM OPERATING ACTIVITIES Receipts from operating revenues Payments for suppliers and operating expenses Payments to employees Cash generated from operations Interest income received Refunds/(payments) of corporate income tax - net

7

Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Payment of short-term loan interest Cash dividends paid Repayment of long-term loans Payment of bond interest Payment of long-term loan interest Repayment of short-term loans Repayment of Excelcom bonds Proceeds from short-term loans Proceeds from long-term loans Proceeds from long-term bonds Bond issue costs

15

2k

Net cash flows provided by financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year/period Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of year/period Consisting of: - Cash on hand - Cash in bank - Time deposits, mature within three months

Non-cash transaction : Transfer of assets under finance leases

2007 (1 year)

2008 (3 months)

2009 (3 months)

8,039,046

12, 165,611

2,668,456

3,224,381

(2,710,191) (389,621)

(3,602,846) (460,158)

(6,619,752) (650,825)

(1,646,070) (201,460)

(1,683,818) (232,136)

2,802,668 51,589

3,976,042 51,180

4,895,034 26,304

(41,149 )

(211,837)

2,860,573

3,986,073

4,709,501

(4,027,420) (493,098)

(6,868,396) (290,686)

(11,381,712) (233,217)

2,616

5,094

100,898

820,926 8,292 (50,577) 778,641

(1,782,499) (21,262) 3,842

1,308,427 18,537 (30,293 ) 1,296,671

(2,172,503) (4 7,210) 4,775

(4,517,902)

(7,153,988)

(11,514,031)

(1,799,919)

(2,214,938)

(4,187) (351,180) (688,100) 2,440,863 (30,598 )

(67,169) (494,116) (51,425) 2,503,455 1,500,000 (7,865)

(65,461) (141,800) (400,000) (444,513) (649,051) (1,000,000) (4,459,970) 1,470,950 12,953,122 -

(249,382) (67,812) (3,296,650) 1,941,900 2,500,000 -

(11,957) (167,339) (85,063) (310,757) (547,500) 1,463,976 -

1,366,798

3,382,880

7,263,277

(290,531)

214,965

880,485

828,056

341,360

458,747

(193,222)

(576,907)

587,176

805,769

805,769

3,628

(94,313)

587,176

805,769

1,170,203

610,327

591,842

1,270 233,646

1,463 105,669

1,583 65,712

1,4 67 72,107

1,468 390,374

352,260

698,637

1,102,908

536,753

200,000

587,176

805,769

1,170,203

610,327

591,842

-

-

-

-

363,195

(2,778) 3

2008 (1 year)

5,902,480

6,316

Net cash flows provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of fixed assets Additions of other assets Proceeds from sale of fixed assets and insurance claims

2006 (1 year)

(2,2 20)

The accompanying notes form an integral part of these consolidated financial statements. Page 4

1,170,203

(1,454)

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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 (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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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 (continued) 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: Licence

Licence No.

Type of services

Grant date/latest renewal date

Licence to Operate Cellular Mobile Network

100/KEP/M.KOMINFO /10/2006

GSM 900/DCS1800 i.e. 2G, IMT-2000/3G and basic telephony services

11 October 2006

Licence to Operate Internet Access Services (“ISP”)

197/Dirjen/2006

Internet access services (Internet Service Provider)

24 May 2006

Licence to Operate a Fixed Closed Network

KP.159 Year 2003

Fixed closed network

7 May 2003

Licence to Operate Internet Telephony Services for Public Interest (“ITKP”)

207/Dirjen/2004

Internet Telephony Services for Public Interest (“ITKP”)/VoIP

29 June 2004

Licence to operate Internet Interconnection Services (“NAP”)

17/Dirjen/2005

Internet interconnection services

16 February 2005

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 IMT2000 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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 (continued) 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:

Year of Payment

BI Rate (%)

Multiplying Index

Year 1

Annual BHP Frequency 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 b. c.

= Tender result per 2x5 MHz block (referring to the lowest winner bid price of Rp 160 billion, full amount). Ri = Average BI Rate for the preceding year. 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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 (continued) 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 Board of Directors

31/12/2007

31/12/2008

31/03/2008

31/03/2009

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 Ahmad

Md. Nasir Ahmad

P. Nicanor V. Santiago III

Md. Nasir Ahmad

P. Nicanor V. Santiago III

P. Nicanor V. Santiago III

P. Nicanor V. Santiago III

Joy Wahjudi

P. Nicanor V. Santiago III

Joy Wahjudi

Joy Wahjudi

Joy Wahjudi

Willem Lucas Timmermans

Joy Wahjudi

Willem Lucas Timmermans

Willem Lucas Timmermans

Willem Lucas Timmermans

Dian Siswarini

Willem Lucas Timmermans

Dian Siswarini

Hilmi bin Mohd Yunus

Dian Siswarini

Dian Siswarini

Board of Commissioners President Commissioner: YBhg Tan Sri Dato’ Ir.Muhammad Radzi bin Haji Mansor

YBhg Tan Sri Dato’ Ir.Muhammad Radzi bin Haji Mansor

YBhg Tan Sri Dato’ Ir.Muhammad Radzi bin Haji Mansor

YBhg Tan Sri Dato’ Ir.Muhammad Radzi bin Haji Mansor

YBhg Tan Sri Dato’ Ir,Muhammad Radzi bin Haji Mansor

Commissioners:YBhg Dato’ Yusof Annuar bin Yaacob

YBhg Dato’ Yusof Annuar bin Yaacob

YBhg Dato’ Jamaludin bin Ibrahim

YBhg Dato’ Yusof Annuar bin Yaacob

YBhg Dato’ Jamaludin bin Ibrahim

YB Datuk Nur Jazlan bin Tan Sri Mohamed

YB Datuk Nur Jazlan bin Tan Sri Mohamed

YBhg Dato’ Yusof Annuar bin Yaacob

YB Datuk Nur Jazlan bin Tan Sri Mohamed

YBhg Dato’ Yusof Annuar bin Yaacob

Rosli bin Man

Rosli bin Man

Abdul Farid bin Alias

Rosli bin Man

Ahmad Abdulkarim Mohd Julfar

YBhg Datuk Bazlan bin Osman

YBhg Datuk Bazlan bin Osman

Ahmad Abdulkarim Mohd Julfar

YBhg Datuk Bazlan bin Osman

Gita Irawan Wirjawan

Gita Irawan Wirjawan

Peter J. Chambers

Peter J. Chambers Peter J. Chambers

Abdul Farid bin Alias

Abdul Farid bin Alias

Page 9

Abdul Farid bin Alias

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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 (continued) 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) Wismoyo Arismunandar

Jend. (Purn) Wismoyo Arismunandar

Peter J. Chambers

Jend. (Purn) Wismoyo Arismunandar

Peter J. Chambers

Ir. Tjahjono Soerjodibroto, MBA

Ir. Tjahjono Soerjodibroto, MBA

Dr. Ir. Giri Suseno Hadihardjono

Ir. Tjahjono Soerjodibroto, MBA

Dr. Ir. Giri Suseno Hadihardjono

YBhg Dato’ Mohamad Norza bin Haji Zakaria

YBhg Dato’ Mohamad Norza bin Haji Zakaria

Elisa Lumbantoruan

YBhg Dato’ Mohamad Norza bin Haji Zakaria

Elisa Lumbantoruan

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 Members

: Ir. Tjahjono Soerjodibroto, MBA : 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 Members

: Peter J. Chambers : 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 ownership Excel Phoneloan 818 B.V. GSM One (L) Ltd. GSM Two (L) Ltd. Excelcomindo Finance Company B.V.

100% 100% 100% 100%

Country of domicile Netherlands Malaysia Malaysia Netherlands

Business activities Financing company Financing company Financing company Financing company

Year of participations 1997 1996 1997 2003

The subsidiaries’ total assets before elimination are as follows: 31/12/2006 Excel Phoneloan 818 B.V. GSM One (L) Ltd. GSM Two (L) Ltd. Excelcomindo Finance Company B.V.

31/12/2007

31/12/2008

31/03/2008

31/03/2009

20,384 -

13,102 -

14,916 -

12,821 -

15,767 -

5,580,743

5,850,947

1,478,696

2,354,581

1,539,098

Page 10

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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

United States Dollar (USD) Euro (EUR) Singapore Dollar (SGD)

31/12/2007

31/12/2008

9,130.42 12,472.76 6,050.74

9,629.17 14,205.35 6,819.98

9,208.75 11,512.00 5,776.07

31/03/2008 9,253.67 13,762.66 6,516.59

31/03/2009 11,428.33 15,106.61 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 valueadded 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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 Network equipment - GSM tower - Fibre optic - Other network equipments Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

: 5%, 12.5% : 6.25% : 10%, 12.5% : 10%, 12.5%, 20%, 25%, 50% : 25% : 25% : 25% : 25% : 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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 United States Dollar (USD) Euro (EUR) Singapore Dollar (SGD) Swiss Franc (CHF) Australian Dollar (AUD)

9,020.00 11,858.15 5,878.73 7,381.65 7,133.48

31/12/2007

31/12/2008

9,419.00 13,759.76 6,502.38 8,260.48 8,228.92

10,950.00 15,432.40 7,607.36 10,348.76 7,555.51

31/03/2008 9,217.00 14,558.72 6,683.36 9,241.04 8,450.15

31/03/2009 11,575.00 15,327.06 7,617.41 10,093.75 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 3.

CASH AND CASH EQUIVALENTS 31/12/2006 Cash on hand Cash in bank Rupiah - Deutsche Bank AG - PT Bank Permata Tbk - JPMorgan Chase Bank, N.A. - PT Bank Central Asia Tbk - PT Bank Bukopin Tbk - PT Bank Mandiri (Persero) Tbk - PT Bank Negara Indonesia (Persero) Tbk - PT Bank Danamon Indonesia Tbk - Others (individual amount less than Rp 3,000) US Dollar - JPMorgan Chase Bank, N.A. - Standard Chartered Bank - Deutsche Bank AG - Others (individual amount less than Rp 3,000)

Time deposits (mature within three months) Rupiah - PT Bank OCBC NISP Tbk (formerly PT Bank NISP Tbk) - PT Bank UOB Indonesia - Deutsche Bank AG - PT Bank Permata Tbk - PT Bank DBS Indonesia - PT Bank Central Asia Tbk - PT ANZ Panin Bank - PT Bank CIMB Niaga Tbk (formerly PT Bank Niaga Tbk) - PT Bank Mega Tbk - PT Bank Internasional Indonesia Tbk US Dollar - PT Bank Mega Tbk - PT Bank Chinatrust Indonesia - PT Bank CIMB Niaga Tbk (formerly PT Bank Niaga Tbk) - PT ANZ Panin Bank - PT Bank Danamon Indonesia Tbk - PT Bank Permata Tbk - PT Bank DBS Indonesia - Standard Chartered Bank - PT Bank OCBC NISP Tbk (formerly PT Bank NISP Tbk) - The Bank of Tokyo-Mitsubishi UFJ, Ltd. - ABN AMRO Bank N.V. - PT Bank Rabobank International Indonesia

31/12/2007

31/12/2008

31/03/2008

31/03/2009

1,270

1,463

1,583

1,467

1,468

5,150 154 1,247 193,403 126 3,112 4,279 4,843

5,038 927 46,541 28,979 539 4,764 4,853 1,144

3,177 3,331 28,684 18,837 1,411 1,832 1,603 1,014

167 15,590 20,110 841 -

224,034 50,752 21,942 13,710 4,009 1,315 616 541

10,496

5,372

2,716

8,745

3,058

10,021 51 764

7,458 54 -

3,033 74 -

26,592 -

70,344 53 -

-

-

-

62

-

233,646

105,669

65,712

72,107

390,374

28,500 1,300 -

100,000 67,000 180,000 -

53,000 113,908 60,000

150,000 113,800 100,000 90,000 -

200,000 -

75,000 40,000

90,000 45,000 -

-

-

-

-

-

109,500 219,000

82,953 -

-

-

122,447 -

109,500 109,500 109,500 109,500 54,750 54,750

-

-

126,280 45,100

94,190 -

-

-

-

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 Rupiah deposit US Dollar deposit

31/12/2007

3.00% - 15.00% 4.15% - 5.40%

7.30% - 9.75% 5.15% - 5.60%

Page 20

31/12/2008 7.00%-13.60% 1.00%-7.00%

31/03/2008

31/03/2009

8.00% - 8.25% 4.50% - 5.25%

7.50%-13.25% 1.00%-7.00%

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 4.

TRADE RECEIVABLES - THIRD PARTIES 31/12/2006 Domestic partners - PT Mora Telematika Indonesia - PT Bakrie Telecom Tbk - PT Sampoerna Telekomunikasi Indonesia - PT Telekomunikasi Indonesia Tbk - PT Natrindo Telepon Seluler - PT Nettocyber Indonesia - PT Indo Pratama Teleglobal - PT Hutchison CP Telecommunications - PT Indosat Tbk - PT Insan Sarana T elematika - PT Telekomunikasi Selular - Others (individual amount less than Rp 3,000, in USD and Rupiah)

International partners - Shinetown Telecommunications Ltd. - Digi Telecommunications Sdn Bhd - Telstra Corporation Ltd. - Australia - Unifone Pte. Ltd. - Others (individual amount less than Rp 3,000)

Allowance for doubtful accounts

31/12/2007

31/12/2008

31/03/2008

31/03/2009

26,859 3,619

46,326 1,873

80,301 88,601

91,536 33,885

78,736 62,501

8,328 22 4,562 3,309 17,670 3,184

18 4,992 76 10,098 5,535 101 2,396 35 -

24,175 12,217 64,926 4,513 720 366,659 2,730 3,085 -

12,999 1,039 13,158 10,596 3,413 39,011 10,223 -

18,133 12,997 4,141 3,953 1,549 1,402 1,243 881 -

182,197

268,079

258,564

223,300

247,207

249,750

339,529

906,491

439,160

432,743

5,816 246 3,260 3,846

6,792 227 6,040 4,492

13,520 3,463 558 -

5,436 189 6,048 -

13,092 3,960 1,089 -

9,294

18,922

14,618

51

12,342

22,462

36,473

32,159

11,724

30,483

272,212 (84,816)

376,002 (119,005)

938,650 (103,182)

450,884 (83,907)

463,226 (115,588)

187,396

256,997

835,468

366,977

347,638

The ageing analysis of trade receivables is as follows: 31/12/2006 Current Overdue 1 - 30 days Overdue 31 - 60 days Overdue > 61 days

31/12/2007

31/12/2008

31/03/2008

31/03/2009

151,553 39,209 8,401 73,049

152,246 56,867 23,317 143,572

695,206 50,198 46,340 146,906

211,828 63,990 41,230 133,836

126,238 54,353 32,055 250,580

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 Bad debt expenses Doubtful debts written off

17,897 68,037 (1,118)

84,816 58,862 (24,673)

119,005 59,376 (75,199 )

119,005 17,264 (52,362)

103,182 12,469 (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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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 Prepayments - current portion Advances on operational expenses

31/12/2007

31/12/2008

31/03/2008

31/03/2009

158,388 8,707

215,412 4,493

356,889 21,371

359,378 9,053

662,538 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 Prepayments - long-term portion Downpayment to suppliers Deferred charges Restricted bank deposits and cash in bank Others

Deduct: Restricted bank deposits and cash in bank – current Lease receivable – current

Other assets - non-current

31/12/2008

31/03/2008

31/03/2009

522,784 87,837 8,057 244 9,581

670,485 167,877 12,341 856 10,742

945,227 135,595 8,560 17,386 12,993

708,607 178,574 10,025 1,033 11,255

1,027,964 77,291 30,877 18,484 13,011

628,503

862,301

1,119,761

909,494

1,167,627

-

-

-

-

681,827 (309,353)

-

-

-

-

372,474

Lease receivable Unearned finance lease income

Intangible assets - 3G licence: Acquisition cost Accumulated amortisation

31/12/2007

376,000 (13,193 )

376,000 (52,772)

376,000 (92,351 )

376,000 (62,667 )

376,000 (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

(148) -

(230) -

(16,705) -

(276) -

(17,785) (62,494)

(148)

(230)

(16,705)

(276)

(80,279)

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 Not later than 1 year Later than 1 year and not later than 5 years More than 5 years

31/12/2007

31/12/2008

31/03/2008

31/03/2009

-

-

-

-

99,269

-

-

-

-

198,539 384,019

Unearned finance lease income

-

-

-

-

681,827 (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. For transactions with related parties please refer to Note 22. Page 22

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 7.

FIXED ASSETS 31/12/2005

Additions

31/12/2006 Disposals

Transfers

31/12/2006

Cost Land Buildings Network equipment Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

101,083 31,266 10,856,531 98,454 210,040 14,657 105,382 33,868

15,690 9,956 3,336,780 12,640 41,657 7,501 16,691 4,808

(340,437) (85) (5,839) (151) (19) (807)

253 7,076 557,609 (2,390) 8,463 786 1,522 -

117,026 48,298 14,410,483 108,619 254,321 22,793 123,576 37,869

Assets under construction

11,451,281 923,972

3,445,723 1,057,329

(347,338) (1,505)

573,319 (573,319)

15,122,985 1,406,477

12,375,253

4,503,052

(348,843)

(11,385) (4,574,227) (63,037) (144,333) (8,614) (75,044) (27,555)

(3,530) (1,431,109) (14,511) (35,523) (3,591) (15,952) (3,804)

338,086 86 5,632 151 14 794

(4,904,195)

(1,508,020)

344,763

Accumulated depreciation Buildings Network equipment Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

Net book value

1,328 (624) (1,328) 518 139 (33) -

7,471,058

31/12/2006

16,529,462 (13,587) (5,667,874) (78,790) (173,706) (11,915) (91,015) (30,565) (6,067,452) 10,462,010

Additions

31/12/2007 Disposals

Transfers

31/12/2007

Cost Land Buildings Network equipment Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

117,026 48,298 14,410,483 108,619 254,321 22,793 123,576 37,869

14,404 3,475 4,440,405 488 70,594 7,974 52,444 3,338

(180,209) (1,403) (7,698) (458) (388)

80 1,472 736,899 (178) 22,448 2,994 22,733 61

131,510 53,245 19,407,578 107,526 339,665 33,303 198,753 40,880

Assets under construction

15,122,985 1,406,477

4,593,122 2,494,559

(190,156) (10,043)

786,509 (786,509)

20,312,460 3,104,484

16,529,462

7,087,681

(200,199)

(13,587) (5,667,874) (78,790) (173,706) (11,915) (91,015) (30,565)

(4,939) (1,602,462) (12,687) (47,930) (5,898) (27,311) (4,183)

156,585 1,205 7,556 407 388

(6,067,452)

(1,705,410)

166,141

Accumulated depreciation Buildings Network equipment Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

Net book value

10,462,010

(746) 710 123 (77) (10) -

23,416,944 (19,272) (7,113,751) (89,562) (213,957) (17,483) (118,336) (34,360) (7,606,721) 15,810,223

Page 23

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 7.

FIXED ASSETS (continued) 31/12/2007

Additions

31/12/2008 Disposals

Transfers

31/12/2008

Cost Land Buildings Network equipment Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

131,510 53,245 19,407,578 107,526 339,665 33,303 198,753 40,880

6,937 4,727 9,001,586 5,142 111,553 12,019 88,912 68

(169) (374,477) (9,138) (1,058) (1,687) (25) (12,942)

37,851 1,850,718 4,488 78,384 18,736 45,442 3,320

138,447 95,654 29,885,405 108,018 528,544 62,371 333,082 31,326

Assets under construction

20,312,460 3,104,484

9,230,944 1,613,999

(399,496) (20,042)

2,038,939 (2,038,939)

31,182,847 2,659,502

23,416,944

10,844,943

(419,538)

(19,272) (7,113,751) (89,562) (213,957) (17,483) (118,336) (34,360)

(10,155) (3,163,756) (11,493) (82,197) (11,944) (52,052) (3,690)

169 255,165 8,734 1,045 1,505 10 12,798

(7,606,721)

(3,335,287)

279,426

Accumulated depreciation Buildings Network equipment Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

Net book value

(4,750) 8,584 4,750 (8,584) -

15,810,223

31/12/2007

33,842,349 (34,008) (10,013,758) (87,571) (303,693) (27,922) (170,378) (25,252) (10,662,582) 23,179,767

Additions

31/03/2008 Disposals

Transfers

31/03/2008

Cost Land Buildings Network equipment Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

131,510 53,245 19,407,578 107,526 339,665 33,303 198,753 40,880

458 1,006,066 3,134 4 990 -

(56,280) (779) (46) (326) (12,524)

31,480 1,121,847 (3,311) 30,078 7,755 8,652 -

131,968 84,725 21,479,211 103,436 372,831 40,736 208,395 28,356

Assets under construction

20,312,460 3,104,484

1,010,652 1,269,202

(69,955) -

1,196,501 (1,196,501)

22,449,658 3,177,185

23,416,944

2,279,854

(69,955)

-

25,626,843

Accumulated depreciation Buildings Network equipment Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

Net book value

(19,272) (7,113,751) (89,562) (213,957) (17,483) (118,336) (34,360)

(2,994) (593,121) (2,623) (16,364) (2,455) (8,319) (802)

51,585 411 46 281 12,380

(7,606,721)

(626,678)

64,703

15,810,223

(4,750) 79 4,750 (79) -

(27,016) (7,655,208) (87,024) (230,354) (19,657) (126,655) (22,782) (8,168,696) 17,458,1 47

Page 24

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 7.

FIXED ASSETS (continued) 31/12/2008

31/03/2009 Disposals

Additions

Transfers

31/03/2009

Cost Land Buildings Network equipment Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

138,447 95,654 29,885,405 108,018 528,544 62,371 333,082 31,326

3,058 3,341 281,185 702 36,706 2,548 769 -

(218,827) (1,538) (401) (175) (15,486)

48,254 1,526,482 6,387 48,997 14,557 21,731 2,855

141,505 147,249 31,474,245 113,569 613,846 79,301 355,582 18,695

Assets under construction

31,182,847 2,659,502

328,309 1,438,799

(236,427) (1,496)

1,669,263 (1,669,263)

32,943,992 2,427,542

33,842,349

1,767,108

(237,923)

-

35,371,534

Accumulated depreciation Buildings Network equipment Leasehold improvements Machinery and equipment Furniture and fixtures Support systems Motor vehicles

Net book value

(34,008) (10,013,758) (87,571) (303,693) (27,922) (170,378) (25,252)

(3,912) (816,501) (4,809) (29,482) (5,060) (17,507) (980)

214,188 1,405 381 175 15,487

-

(37,920) (10,616,071) (90,975) (332,794) (32,807) (187,885) (10,745)

(10,662,582)

(878,251)

231,636

-

(11,309,197)

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 Network equipment Non-network equipment

31/12/2007

31/12/2008

31/03/2008

31/03/2009

1,335,077 71,400

2,861,627 242,857

2,384,150 275,352

3,000,135 177,050

2,166,587 260,955

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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 7.

FIXED ASSETS (continued) The calculation of the loss on sale and write-off of fixed assets is as follows: 31/12/2006 Cost Accumulated depreciation Net book value Proceeds from sale of fixed assets and insurance claims Loss on sale and write-off of fixed assets

31/12/2007

348,843 (344,763)

31/12/2008

31/03/2008 69,955 (64,703 )

31/03/2009

200,199 (166,141)

419,538 (279,426)

237,923 (231,636)

4,080

34,058

140,112

5,252

6,287

(2,616)

(5,094)

(100,898)

(3,842)

(4,775)

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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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 PT Ericsson Indonesia PT Huawei Tech Investment Amdocs Software Solution Kft., PT Alita Praya Mitra PT Datacom Diangraha PT Alcatel Lucent Indonesia PT Alcatel Lucent Submarine Networks Ericsson AB (EAW) Eservglobal SAS France PT Graha Sumber Prima Elektronik PT Industri Telekomunikasi The Boston Consulting Group Huawei Tech Investment Co. Ltd. Nokia Siemens Networks Gmbh & Co KG PT Maxima Cipta Integrasi PT Inland Telematika International PT Dentsu Indonesia Interadmar PT Telekomunikasi Indonesia Tbk PT Nokia Siemens Networks PT Dunia Tehnik PT Sun Microsystem Indonesia PT MAC Sarana Djaya PT Alphine Cool Utama PT Logica Information Technology PT Saptakrida Karyamas PT Datacraft Indonesia PT Communication Cable Systems Bluefish Technologies Pte. Ltd. PT Massada Telekomunikasi PT Kokoh Semesta PT QDC Technologies Sagem Orga (Singapore) Pte. Ltd. PT Fastel Sarana Indonesia PT Mostniaga Semesta Xpon Card International (Thailand) PT Bukaka Teknik Utama PT Sas International PT Indonusa Mora Prakarsa PT Ciptakomunindo Pradipta PT Indosat Tbk PT Citramasjaya Teknikmandiri PT Suryajaya Teknotama PT Dawamiba Engineering Siemens Network Gmbhn Co. KG. (formerly Siemens AG) PT Silkar National Ltd. Comverse Network System Inc PT Surya Reksakom Yasatama PT Teletama Artha Mandiri PT Metrodata E-Bisnis Oberthur Card Systems Asia Pte. Ltd . PT Alim Ampuhjaya Steel PT Sisindokom Lintasbuana PT Inpurema Konsultama Ericsson AB Vodafone Others (individual amount less than Rp 10,000, in USD and Rupiah)

31/12/2007

31/12/2008

31/03/2008

31/03/2009

101,704 46,315 298,991 9,857 21,562 120,339 15,940 50,723 33,100 6,645 22,065 11,611 7,092 17,511 106 1,214 4,234 2,993 12,236 18,086 4,988 2,621 6,823 3,045 4,510 4 1,032 10,360 9,958

105,963 99,651 294,281 498,620 31,726 81,581 3,251 21,248 48,548 2,117 143,372 20,712 3,122 18,729 9,085 38,833 8,240 8,659 9,082 3,422 955 1,569 2,279 3,569 12,492 4,106 7,021 17,538 20,481 10,454 13,413 502 16,160 61,970 14,438

577,963 242,120 186,044 348,495 125,611 98,886 115,834 42,454 118 44,818 64,429 27,244 28,508 25,745 24,936 41,061 3,083 18,298 21,872 4,7 10 18,382 14,540 22,745 10,781 11,468 13,145 7,850 11,348 22,454 12,524 17,981 10,243 5,020 5,065 5,223 1,576 3,832 6,400 490

147,008 131,077 257,547 523,433 40,347 127,510 5,992 1,548 32,157 38,157 14,198 129,638 11,619 6,486 17,307 45,450 13,408 21,811 19,710 4,670 2,374 3,710 5,615 1,274 6,760 8,516 10,614 4,456 9,954 2,728 20,689 7,620 6,054 9,167 8,494 12,997 12,670 23,611 4,068

566,617 353,797 235,566 167,741 163,804 155,782 122,446 77,386 51,517 45,608 44,035 37,737 30,136 29,286 25,506 25,465 24,046 23,742 21,726 19,250 16,773 15,359 14,053 14,052 13,357 11,630 11,350 11,186 10,950 10,162 9,773 9,484 8,412 7,107 6,926 4,945 4,914 4,449 3,959 3,656 2,921 1,147 1,133

72,925 11,150 19,947 6,393 11,480 22,401 348,249 -

1,363 559 64 5 3,391 7,315 1,493 378,172 -

1,120 216 3,945 12,142 504 550 224,347 -

958 658 11,510 18,922 2 27,274 23,275 10,853 2,833 1,033 560,532 14,123

1,112 553 454 6 2 -

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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 8.

TRADE PAYABLES - THIRD PARTIES (continued) Trade payables based on currency are as follows: 31/12/2006 Rupiah Foreign currencies Less: Current portion Non-current portion

9.

31/12/2007

31/03/2008

31/03/2009

669,638 1,277,416

735,569 2,234,284

1,065,767 2,481,787

1,101,641 2,373,820

964,270 2,368,390

1,947,054 (1,664,884)

2,969,853 (2,674,050)

3,547,554 (3,250,610)

3,475,461 (3,243,412)

3,332,660 (2,919,508)

282,170

295,803

296,944

232,049

413,152

OTHER PAYABLES AND ACCRUALS - THIRD PARTIES 31/12/2006 Interest payable Accrued salaries and employee benefits Accrued telecommunications service costs Customer deposits Others

10.

31/12/2008

31/12/2007

31/12/2008

31/03/2008

31/03/2009

191,069 57,972 61,928 10,073 4,653

231,499 75,333 147,565 13,810 43,761

156,085 126,266 46,177 20,251 79,822

100,063 38,438 170,387 22,932 23,891

121,256 63,863 58,686 16,070 77,194

325,695

511,968

428,601

355,711

337,069

SHORT-TERM LOANS 31/12/2006 Standard Chartered Bank The Hongkong and Shanghai Banking Corporation Ltd ABN AMRO Bank N.V

31/12/2007

31/12/2008

31/03/2008

31/03/2009

-

-

-

1,000,000

-

-

-

547,500

460,850 460,850

-

-

-

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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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 PT Bank Mandiri (Persero) Tbk PT Bank Central Asia Tbk Exportkreditnämnden Standard Chartered Bank Syndicated loan facility PT Bank DBS Indonesia PT Bank Mizuho Indonesia The Hongkong and Shanghai Banking Corporation Ltd. DBS Bank Ltd. JPMorgan Chase Bank, N.A. PT Bank Sumitomo Mitsui Indonesia PT ANZ Panin Bank

31/12/2007

31/12/2008

31/03/2008

31/03 /2009

-

400,000 941,900 470,950 470,950

3,600,000 3,000,000 2,342,747 1,642,500 1,533,000 700,000 547,500

1,000,000 1,200,000 921,700 1,160,850 460,850

3,600,000 3,000,000 3,730,004 1,736,250 1,620,500 700,000 578,750

-

282,570 -

547,500 547,500 328,500 300,000 250,000

276,510 -

578,750 578,750 347,250 300,000 250,000

Unamortised debt issuance cost

-

2,566,370 -

15,339,247 (45,023 )

5,019,910 -

17,020,254 (57,066)

Less: current portion

-

2,566,370 (40,000)

15,294,224 (730,548)

5,019,910 (400,000)

16,963,188 (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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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. Based on the loan agreement, the Company is required to comply with certain conditions, such as 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 11.

LONG-TERM LOANS (continued) 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. Based on the loan agreement, the Company is required to comply with certain conditions, such as 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 11.

LONG-TERM LOANS (continued) 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. Based on the loan agreement, the Company is required to comply with certain conditions, such as 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%. The outstanding principal 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 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 11.

LONG-TERM LOANS (continued) 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%. The outstanding principal as of 31 December 2007 and 2008; 31 March 2008 and 2009 amounted 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 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%. 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 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%. 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 12.

LONG-TERM BONDS 31/12/2006

31/12/2007

31/12/2008

31/03/2008

31/03/2009

Excelcom Notes - USD Excelcom Notes - IDR

5,412,000 -

5,651,400 1,500,000

1,398,337 1,500,000

2,304,250 1,500,000

1,478,151 1,500,000

Unamortised discount

5,412,000 (66,815 )

7,151,400 (53,884)

2,898,337 (19,089 )

3,804,250 (38,588)

2,978,151 (17,834)

Less: current portion

5,345,185 -

7,097,516 (3,283,434)

2,879,248 -

3,765,662 -

2,960,317 -

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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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 prorata 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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 Provision made during the year/period Amounts paid during the year/period

30,543

38,511

66,228

66,228

76,912

9,498

29,472

14,753

6,216

6,743

(1,530)

(1,755)

(4,069)

Ending balance

38,511

66,228

76,912

(212) 72,232

(239) 83,416

The provision for employee benefits recognised in the consolidated balance sheets is as follows: 31/12/2006 Present value of obligations Unrecognised actuarial losses Unrecognised past service costs Liability in the balance sheet

31/12/2007

31/12/2008

31/03/2008

31/03/2009

47,946 (16,010) 6,575

92,296 (32,062) 5,994

104,145 (32,122) 4,889

109,174 (42,791) 5,849

90,245 (11,573) 4,744

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 Current service costs Interest expenses Amortisation of unrecognised actuarial loss Amortisation of unrecognised past service costs Curtailment Provision for employee benefits expenses

31/12/2007

31/12/2008

31/03/2008

31/03/2009

5,799 3,845

10,755 6,772

14,429 9,385

3,607 2,346

3,514 2,986

434

12,525

1,631

408

388

(580) (10,112 )

(145) -

(145) -

(580) 9,498

Page 36

(580) 29,472

14,753

6,216

6,743

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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

10.5%

10. 25%

12%

11.25%

13%

9%

10%

11%

11%

11%

Rate of mortality

Indonesian Mortality Table 1999 (TMI’99)

Indonesian Mortality Table 1999 (TMI’99)

Indonesian Mortality Table 1999 (TMI’99)

Indonesian Mortality Table 1999 (TMI’99)

Indonesian Mortality Table 1999 (TMI’99)

Rate of disability

10% of TMI ‘99

10% of TMI ‘99

10% of TMI ‘99

10% of TMI ‘99

10% of TMI ‘99

Rate of resignation

10% per annum up to age 25 and reducing linearly up to 1% per annum at age 46 ; 1% per annum for 46 - 55 years

10% per annum up to age 25 and reducing linearly up to 1% per annum at age 46 ; 1% per annum for 46 - 55 years

10% per annum up to age 25 and reducing linearly up to 1% per annum at age 46 ; 1% per annum for 46 - 55 years

10% per annum up to age 25 and reducing linearly up to 1% per annum at age 46 ; 1% per annum for 46 - 55 years

10% per annum up to age 25 and reducing linearly up to 1% per annum at age 46 ; 1% per annum for 46 - 55 years

Retirement rate

100% at normal retirement age of 56 years

100% at normal retirement age of 56 years

100% at normal retirement age of 56 years

100% at normal retirement age of 56 years

100% at normal retirement age of 56 years

Discount rate (per annum) Salary increment rate (per annum)

b.

Employee numbers and costs 31/12/2006 Number of employees (permanent employees)

31/12/2007

31/12/2008

31/03/2008

31/03/2009

2,042

2,136

2,097

2,138

2,044

508,794

561,434

706,479

156,589

170,343

11,885

13,995

16,091

4,013

4,264

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 )

Salaries and employee benefits (including outsource)

494,408

573,907

722,515

Total employee costs: - Salaries and allowances - Payment to defined contribution pension plan - Provision for employee benefits

Page 37

(2,987) 163,831

(3,201) 178,149

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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 Indocel Holding Sdn. Bhd. (formerly Nynex Indocel Holding Sdn.) Khazanah Nasional Berhad PT Rajawali Corpora (formerly PT Telekomindo Primabhakti) AIF (Indonesia) Ltd. Public

Amount

%

4,227,901,400 1,191,553,500

422,790 119,155

59.63 16.81

1,132,497,500 523,532,100 14,515,500

113,250 52,353 1,452

15.97 7.38 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. The composition of the Company’s shareholders as at 31 December 2007 was as follows: Number of shares Indocel Holding Sdn. Bhd. (formerly Nynex Indocel Holding Sdn.) Khazanah Nasional Berhad Emirates Telecommunications Corporation (Etisalat) International Indonesia Ltd. Public

Amount

%

4,749,383,500 1,191,553,500

474,938 119,155

66.99 16.81

1,132,497,500 16,565,500

113,250 1,657

15.97 0.23

7,090,000,000

709,000

100.00

As at 31 December 2007, the 16,565,500 shares owned by the public included those owned by the directors of the Company, who held 49,000 shares. The composition of the Company’s shareholders as at 31 December 2008 was as follows: Number of shares Indocel Holding Sdn. Bhd. (formerly Nynex Indocel Holding Sdn.) Emirates Telecommunications Corporation (Etisalat) International Indonesia Ltd. Public

Amount

%

5,940,937,000

594,094

83.80

1,132,497,500 16,565,500

113,250 1,656

15.97 0.23

7,090,000,000

709,000

100.00

Page 38

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 14.

SHARE CAPITAL AND CAPITAL SURPLUS (continued) Share Capital (continued) As at 31 December 2008, the 16,565,500 shares owned by the public included those owned by the directors of the Company, who held 344,000 shares. The composition of the Company’s shareholders as at 31 March 2008 was as follows: Number of shares Indocel Holding Sdn. Bhd. (formerly Nynex Indocel Holding Sdn.) Khazanah Nasional Berhad Emirates Telecommunications Corporation (Etisalat) International Indonesia Ltd. Public

Amount

%

4,749,383,500 1,191,553,500

474,938 119,155

66.99 16.81

1,132,497,500 16,565,500

113,250 1,657

15.97 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 directors of the Company, who held 49,000 shares. The composition of the Company’s shareholders as at 31 March 2009 is as follows: Number of shares Indocel Holding Sdn. Bhd. (formerly Nynex Indocel Holding Sdn.) Emirates Telecommunications Corporation (Etisalat) International Indonesia Ltd. Public

Amount

%

5,940,937,000

594,094

83.80

1,132,497,500 16,565,500

113,250 1,656

15.97 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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 Share issuance costs Exchange rate difference due to paid-in capital

2,712,250 (44,815) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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 Net income/(loss)attributable to the shareholders

31/12/2007

651,883

250,781

7,090,000,000

7,090,000,000

Basic earning /(loss) per share (full amount)

92

35

Diluted earning /(loss) per share (full amount)

92

35

Weighted average number of ordinary shares outstanding

31/12/2008

(15,109 )

31/03/2008

31/03/2009

319,917

(306,068)

7,090,000,000

7,090,000,000

(2 )

45

(43)

(2 )

45

(43)

7,090,000,000

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 (1 year) Cellular Telecommunications service Voice Non-voice Monthly service charge

Cellular Interconnection service Domestic interconnection International roaming SMS interconnection Others

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

2,747,183 2,239,392 921

3,866,302 2,632,500 1,921

6,622,610 3,140,732 4,382

1,387,624 722,132 1,127

1,502,798 780,291 970

4,987,496

6,500,723

9,767,724

2,110,883

2,284,059

866,260 306,912 23,712 4,902

886,995 465,305 25,894 5,408

1,036,861 483,468 13,802 3,221

252,758 117,212 4,043 834

225,263 142,811 4,066 791

1,201,786

1,383,602

1,537,352

374,847

372,931

Page 41

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 18.

REVENUE (continued) 2006 (1 year)

Gross cellular revenue Discount Gross cellular revenue net of discount

2007 (1 year)

6,189,282 (688,088) 5,501,194

7,884,325 (375,085) 7,509,240

2008 (1 year)

2008 (3 months)

11,305,076 (94,781 ) 11,210,295

2,485,730 (31,514 ) 2,454,216

2009 (3 months)

2,656,990 (23,664) 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 Leased lines Internet service provider Others

238,688 28,747 9,340

408,710 58,779 12,897

276,669 478,473 63,910 31,863

18,118 127,774 15,738 7,125

141,610 106,546 13,164 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

4,681,675

6,459,770

9,764,826

2,068,632

2,403,856

Revenue net of interconnection and telecommunications service charges

For transactions with related parties please refer to Note 22.

19.

INFRASTRUCTURE EXPENSES 2006 (1 year) Licence fee Rental expense Utilities expense Repair and maintenance expense Others

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

199,801 133,183 112,184 168,183 -

471,835 187,886 182,453 234,502 -

660,377 519,121 388,311 302,488 118,278

171,634 90,293 61,402 35,500 2,634

262,008 206,837 137,735 124,385 8,970

613,351

1,076,676

1,988,575

361,463

739,935

Page 42

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 20.

SALES COMMISSION AND MARKETING EXPENSES 2006 (1 year) Sales commission expense Advertising and promotion expense

21.

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

321,424 332,283

463,027 433,022

697,489 655,200

155,709 136,181

135,525 95,590

653,707

896,049

1,352,689

291,890

231,115

TAXATION a. Prepaid taxes 31/12/2006 Value Added Tax - net Refundable corporate income taxes overpayment: - Article 22 - Article 23/26 - Article 25

31/12/2007

31/12/2008

31/03/2008

31/03/2009

39,271

135,056

393,469

224,898

424,680

41,432 100,605 4,227

80,276 57,653 10,906

181,479 96,179 83,733

79,151 57,830 12,365

186,694 98,607 106,646

185,535

283,891

754,860

374,244

816,627

b. Taxes payable 31/12/2006 Corporate income tax payable: - The Company - The Subsidiaries Employee income tax (article 21) Withholding tax on rent and other services (article 23/26)

31/12/2007

31/12/2008

31/03/2008

31/03/2009

3,657 3,609

4,423 3,571

5,142 4,660

14,497 4,328 10,632

5,815 3,822

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 (1 year) Current Deferred

Consisting of: The Company: - Current - Deferred The Subsidiaries: - Current

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

(2,031) (348,508)

(675) (266,576)

60,100

(63,748) (82,027)

(410) 99,084

(350,539)

(267,251)

60,100

(145,775)

98,674

(348,508)

(266,576)

60,100

(63,748) (82,027)

99,084

(2,031)

(675)

-

(350,539)

(267,251)

60,100

(145,775)

(410) 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 (1 year)

2007 (1 year)

2008 (1 year)

Consolidated income/(loss) before income tax

1,002,422

518,032

(75,209)

Less: net income/(loss) before tax - The Subsidiaries

5,512

3,175

(7,897)

Page 43

2008 (3 months) 465,692 (8,784)

2009 (3 months) (404,742) 3,980

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 21.

TAXATION (continued) c. Corporate income tax (expense)/benefit (continued) 2006 (1 year) Income/(loss) before income tax - The Company

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

996,910

514,857

(67,312 )

474,476

(408,722)

(Expenses)/benefit tax calculated at effective rates Income subject to final tax - net Non-deductible expenses Prior years’ tax adjustments Changes in tax rate

(299,073) 14,361 (42,164) (21,632) -

(154,457) 13,913 (123,500) (2,532) -

20,194 7,213 (76,318) (1,716) 110,727

(142,325) 2,123 (5,573) -

114,442 4,351 (10,577) 2,462 (11,594)

Income tax (expense)/benefit: - The Company - The Subsidiaries

(348,508) (2,031)

(266,576) (675)

60,100 -

(145,775) -

99,084 (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 (1 year) Income/(loss)before income tax Temporary differences: - Difference between commercial and fiscal depreciation and amortisation - Difference between commercial and fiscal (loss)/gain on disposal and write-off assets - Allowance for bad debt expense - Provision for salaries and employee benefits

Permanent differences: - Non-deductible expenses - Income subject to final tax - net

Tax income/(loss)

2007 (1 year)

996,910

2008 (1 year)

2008 (3 months)

2009 (3 months)

514,857

(67,312 )

474,476

(408,722)

(514,608)

(1,000,276)

(646,440)

(95,681)

(638,879)

(44,535) 66,918

3,757 34,190

11,656 (15,847)

816 (35,099)

(32,658) 12,396

87,983

52,233

(30,386)

(56,684)

(484,256)

(874,346)

(598,398)

(160,350)

(715,825)

140,547 (47,871)

411,666 (46,378)

254,392 (24,043 )

18,578 (7,078)

37,776 (15,539)

92,676

365,288

230,349

11,500

22,237

605,330

5,799

(435,361)

325,626

(1,102,310)

7,969

Accumulated tax losses Tax loss adjustment 2004 Tax loss adjustment 2005 Tax loss adjustment 2006

(793,128) 32,220 28,262 -

(127,316) 8,442 -

(113,075) 5,208

(113,075) -

(543,228) -

Taxable (loss)/income

(127,316)

(113,075)

(543,228)

212,551

(1,645,538)

63,748

-

Current tax expense - The Company

-

-

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

-

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 21.

TAXATION (continued) 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

31/12/2005 Difference between commercial and fiscal depreciation and amortisation Employee stock allocation Allowance for bad debt expense Provision for salaries and employee benefits Tax losses carried forward

Prior year adjustment credited to consolidated statement of income

31/12/2006

(254,116) 3,000 5,370

(167,743) 20,075

(488) (3,000) -

9,162 237,939

2,391 (181,599)

(18,144)

11,553 38,196

1,355

(326,876)

(21,632)

(347,153)

31/12/2006 Difference between commercial and fiscal depreciation and amortisation Allowance for bad debt expense Provision for salaries and employee benefits Tax losses carried forward

(Charged)/ credited to consolidated statement of income

(422,347) 25,445 11,553 38,196 (347,153)

Page 45

(Charged)/ credited to consolidated statement of income

Prior year adjustment credited to consolidated statement of income

(422,347) 25,445

31/12/2007

(298,956) 10,257

-

(721,303) 35,702

26,395 (1,740)

(2,532)

37,948 33,924

(264,044)

(2,532)

(613,729)

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 21.

TAXATION (continued) d. Deferred tax liabilities (continued)

(Charged)/ credited to consolidated statement of income

31/12/2007 Difference between commercial and fiscal depreciation and amortisation Allowance for bad debt expense Provision for salaries and employee benefits Tax losses carried-forward

(721,303) 35,702

(190,435) (4,754)

37,948 33,924

15,670 130,608

(613,729)

(48,911 )

-

31/12/2008

151,956 (5,158)

(759,782) 25,790

(152) (1,564)

(8,910) (27,161 )

44,556 135,807

(1,716)

110,727

(553,629)

31/03/2008

(721,303) 35,702

(28,457) (10,530)

(749,760) 25,172

37,948 33,924

(9,116) (33,924)

28,832 -

(613,729)

(82,027)

(695,756)

31/12/2008 Difference between commercial and fiscal depreciation and amortisation Allowance for bad debt expense Provision for salaries and employee benefits Tax losses carried-forward

Changes in tax rate

(Charged)/credited to consolidated statement of income

31/12/2007 Difference between commercial and fiscal depreciation and amortisation Allowance for bad debt expense Provision for salaries and employee benefits Tax losses carried forward

Prior year adjustment credited to consolidated statement of income

(Charged)/ credited to consolidated statement of income

Prior year adjustment credited to consolidated statement of income

Changes in tax rate

31/03/2009

(759,782) 25,790

(188,030) 3,471

2,462 -

20,146 (372)

(925,204) 28,889

44,556 135,807

(15,872) 308,647

-

1,701 (33,069 )

30,385 411,385

(553,629)

108,216

(11,594)

(454,545)

2,462

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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 21.

TAXATION (continued) 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. 0716507169/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 S333/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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 21.

TAXATION (continued) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 21.

TAXATION (continued) 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 selfassessment. 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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: Related parties

Nature of the relationships 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. (formerly MTN Networks (Pvt.) Ltd.)

Entity under common control

International roaming revenue and interconnection charges

Telekom Malaysia International (Cambodia) Co. Ltd. (formerly Cambodia Samart Communications Co. Ltd.)

Entity under common control

International roaming revenue and interconnection charges

TM International (Bangladesh) Ltd.

Entity under common control

International roaming revenue and interconnection charges

PT Rajawali Corpora (formerly PT Telekomindo Primabhakti)

Shareholders (until May 2007), one of PT Rajawali Corpora’s Directors is the Company’s Commissioner

Reimbursement of expenses and building rental

MobileOne Ltd.

Entity under common control

International roaming revenue and interconnection charges

Spice Communications Ltd.

Entity under common control

International roaming revenue and interconnection charges

Axiata Group Berhad (formerly Telekom Malaysia International Sdn. Bhd.)

Entity under common control

Reimbursement of expenses

PT Bank CIMB Niaga, Tbk (formerly PT Bank Niaga Tbk and Lippo Bank)

Entity under common control

Leased line revenue, cash and cash equivalent

Emirates Telecommunications Corporation

Afiliate of shareholder

International roaming revenue and interconnection charges

Etihad Etisalat

Afilliate of shareholder

International roaming revenue and interconnection charges

Thuraya Satellite Telecommunications Company

Afilliate of shareholder

International roaming revenue and interconnection charges

VADS Business Process Process Sdn. Bhd.

Entity under common control

Outsource contact centre service expense

Page 50

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 22.

RELATED PARTY INFORMATION (continued) b. Cash and cash equivalents 31/12/2006 PT Bank CIMB Niaga, Tbk (formerly PT Bank Niaga Tbk and Lippo Bank) (As a percentage of total cash and cash equivalents)

31/12/2007

31/12/2008

31/03/2008

31/03/2009

-

1,120

109,851

268

174

0.00%

0.14%

9.39%

0.04%

0.03%

c. Trade receivables 31/12/2006 Telekom Malaysia Berhad Celcom (Malaysia) Berhad PT Bank CIMB Niaga, Tbk (formerly PT Bank Niaga Tbk and Lippo Bank MobileOne Ltd. Etihad Etisalat Emirates Telecommunications Corporation Telekom Malaysia (S) Pte., Ltd. Telekom Malaysia - Hongkong Dialog Telekom Limited (formerly MTN Networks (Pvt.) Ltd.) Thuraya Satellite Telecommunications Company TM International (Bangladesh) Ltd.

(As a percentage of total trade receivables - net)

31/12/2007

31/12/2008

31/03/2008

31/03/2009

7,315 9,162

11,129 27,311

56,164 4,471

32,840 22,718

65,136 6,733

-

10,972 1,555 -

3,079 1,633 123

6,910 1,345 -

5,555 3,785 777

379

289 65

406 2,173 77

1,096 286

725 105 81

46

26

91

18

66

-

57 -

72 3

-

38 -

16,902

51,404

68,292

65,213

83,001

8.27%

16.67%

7.56%

15.09%

18.90%

d. Other receivables 31/12/2006 Axiata Group Berhad (formerly Telekom Malaysia International Sdn. Bhd.) Celcom (Malaysia) Berhad

(As a percentage of total other receivable)

31/12/2007

31/12/2008

31/03/2008

31/03/2009

6

-

21,368 -

-

2 -

6

-

21,368

-

2

0.17%

0.00%

61.37%

0.00%

0.08%

e. Trade payables 31/12/2006 Telekom Malaysia Berhad VADS Business Process Sdn. Bhd. Celcom (Malaysia) Berhad Telekom Malaysia (S) Pte., Ltd. Telekom Malaysia International (Cambodia)Co. Ltd. (formerly Cambodia Samart Communications Co. Ltd.) Spice Communications Ltd. Etihad Etisalat TM International (Bangladesh) Ltd.

(As a percentage of total trade payables)

31/12/2007

31/12/2008

31/03/2008

31/03/2009

6,541 68

3,118 232

18,224 4,895 4,641 452

5,593 584 1,900

16,951 11,644 9,103 682

8 -

23 54 200

13 28 -

17 85 -

27 14 -

4

1

-

-

-

6,621

3,628

28,253

8,179

38,421

0.34 %

0.12%

0.79%

0.25%

1.30%

Page 51

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 22.

RELATED PARTY INFORMATION (continued) f.

Other payables and accruals 31/12/2006 Axiata Group Berhad (formerly Telekom Malaysia International Sdn. Bhd.) (As a percentage of total other payables and accruals)

31/12/2007

31/12/2008

31/03/2008

31/03/2009

-

4

-

-

-

0.00%

0.00%

0.00%

0.00%

0.00%

g. Revenue 2006 (1 year) Telekom Malaysia Berhad PT Bank CIMB Niaga, Tbk (formerly PT Bank Niaga Tbk and Lippo Bank) Celcom (Malaysia) Berhad MobileOne Ltd. Emirates Telecommunications Corporation Telekom Malaysia (S) Pte., Ltd. Etihad Etisalat Dialog Telekom Ltd. (formerly MTN Networks (Pvt.) Ltd.) Spice Communications Ltd. Thuraya Satellite Telecommunications Company TM International (Bangladesh) Ltd. Telekom Malaysia International (Cambodia) Co. Ltd. (formerly Cambodia Samart Communications Co. Ltd.) Telekom Malaysia - Hongkong (As a percentage of gross revenue net of discount)

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

13,205

25,232

127,759

11,841

34,311

22,411 -

14,075 98,630 17,038

31,298 14,818 21,520

8,026 33,839 4,790

8,234 7,572 5,325

965 -

134 1,246 16

3,227 5,974 1,561

456 1,061 67

826 694 646

124 -

108 137

173 85

24 29

39 26

-

20

137

27

6

13

3

13

1

2

4 4,988

6 2,506

5 436

2 436

1 -

41,710

159,151

207,006

60,599

57,682

0.72%

1.99%

1.72%

2.31%

1.99%

h. Interconnection charges 2006 (1 year) Celcom (Malaysia) Berhad Telekom Malaysia Berhad MobileOne Ltd. Telekom Malaysia (S) Pte., Ltd. Emirates Telecommunications Corporation Etihad Etisalat Spice Communications Ltd. Telekom Malaysia International (Cambodia) Co. Ltd.(formerly Cambodia Samart Communications Co. Ltd.) Dialog Telekom Ltd. (formerly MTN Networks (Pvt.) Ltd.) TM International (Bangladesh) Ltd.

(As a percentage of interconnection charges)

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

1,695 7,137 1,295

2,026 3,782 3,680 2,488

11,430 9,198 5,822 2,337

1,111 1,963 1,187 2,154

7,999 2,140 1,666 922

-

70 224 214

2,778 1,689 237

158 91 63

276 223 52

39

77

97

21

28

26 20

25 12

38 12

10 4

12 4

10,212

12,598

33,638

6,762

13,322

1.20%

1.12%

2.16%

1.66%

4.31%

Page 52

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 22.

RELATED PARTY INFORMATION (continued) i.

Other telecommunications service costs 2006 (1 year) Telekom Malaysia Berhad Telekom Malaysia (S) Pte., Ltd.

(As a percentage of other telecommunications service costs)

j.

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

528 34

17,914 -

21,853 -

1,930 -

5,368 -

562

17,914

21,853

1,930

5,368

1.76%

25.37%

15.61%

8.27%

15.66%

Rental expense 2006 (1 year) PT Rajawali Corpora (formerly PT Telekomindo Primabhakti) (As a percentage of operating expenses)

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

5,930

4,618

4,618

1,155

1,155

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 (1 year) VADS Business Process Sdn. Bhd. (As a percentage of operating expense)

l.

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

-

-

4,895

-

11,644

0.00%

0.00%

0.06%

0.00%

0.53%

Salaries and allowances for Board of Directors and Commissioners 2006 (1 year)

2007 (1 year)

2008 (1 year)

2008 (3 months)

2009 (3 months)

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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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) Purchase commitments Downpayments

(Equivalent billion Rp)

156 (10)

1,807 (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 Payable within 2 (two) years and 5 (five) years Payable more than 5 (five) years

11,088 94,248 116,424 221,760

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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 24.

DERIVATIVES 31/12/2006 Derivative receivables Forward Foreign Currency Contracts Cross Currency Swap Contracts

Less: current portion

31/12/2008

31/03/2008

31/03/2009

-

105,584 20,139

758,286 200,716

201,158 13,913

486,245 227,212

-

125,723 -

959,002 (333,324)

215,071 (67,405)

713,457 (121,489)

-

125,723

625,678

147,666

591,968

42,155 -

-

36,828

350 23,642

68,508

42,155 -

-

36,828 -

23,992 -

68,508 (3,011)

42,155

-

36,828

23,992

65,497

Less: current portion

Derivative payables Forward Foreign Currency Contracts Cross Currency Swap Contracts Interest Rate Swap Contracts

31/12/2007

Below are details of forward foreign currency contracts the purpose of which is to hedge the payment of long-term loans in USD: Notional amount USD

Derivative (payables)/receivables 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. b. Standard Chartered Bank c. JPMorgan Securities (S.E.A.) Ltd. d. Standard Chartered Bank e. Standard Chartered Bank f. JPMorgan Securities (S.E.A.) Ltd. g. Standard Chartered Bank h. Standard Chartered Bank i. JPMorgan Securities (S.E.A.) Ltd. j. JPMorgan Securities (S.E.A.) Ltd. k. Standard Chartered Bank l. The Hongkong and Shanghai Banking Corporation Ltd. m. JPMorgan Chase Bank n. Standard Chartered Bank o. JPMorgan Securities (S.E.A.) Ltd. p. The Royal Bank of Scotland q. Standard Chartered Bank Derivative receivables Derivative payables

25,000,000

(15,376)

3,007

76,243

21,836

88,230

25,000,000

(14,614)

3,873

83,259

22,680

90,770

25,000,000

(6,804)

5,109

-

-

-

25,000,000

(5,361)

6,005

55,692

10,180

-

25,000,000

-

12,907

92,177

30,847

99,027

25,000,000

-

6,850

55,425

10,506

-

25,000,000

-

14,521

87,097

32,306

98,724

25,000,000

-

9,129

55,692

11,717

-

25,000,000

-

8,523

55,425

11,329

-

12,500,000

-

4,064

27,712

5,567

-

12,500,000

-

4,234

27,846

5,696

-

12,500,000

-

5,602

27,685

5,920

-

12,500,000

-

8,975

42,687

10,255

47,596

12,500,000

-

5,848

27,846

6,490

-

12,500,000

-

6,937

43,500

15,829

49,090

15,300,000

-

-

-

-

5,738

15,300,000

-

-

-

-

7,070

-

105,584

758,286

201,158

486,245

(42,155)

-

-

-

-

Page 55

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 24.

DERIVATIVES (continued) Strike rate (full amount) Forward Foreign Currency Contracts: a. JPMorgan Securities (S.E.A.) Ltd.

Premium per annum

Period

1 USD = Rp 9,000

7 December 2006 - 16 January 2013

3.49%

b. Standard Chartered Bank c. JPMorgan Securities (S.E.A.) Ltd.

1 USD = Rp 9,000

7 December 2006 - 16 January 2013

3.49%

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 f. JPMorgan Securities (S.E.A.) Ltd.

1 USD = Rp 9,000

3 January 2007 - 16 January 2013

2.65%

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 i. JPMorgan Securities (S.E.A.) Ltd. j. JPMorgan Securities (S.E.A.) Ltd.

1 USD = Rp 9,000

4 January 2007 - 23 January 2009

2.555%

1 USD = Rp 9,000

5 January 2007 - 23 January 2009

2.43%

1 USD = Rp 9,000

8 May 2007 - 23 January 2009

2. 60%

k. Standard Chartered Bank l. The Hongkong and Shanghai Banking Corporation Ltd.

1 USD = Rp 9,000

8 May 2007 - 23 January 2009

2.84%

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 o. JPMorgan Securities (S.E.A.) Ltd.

1 USD = Rp 9,000

9 May 2007 - 23 January 2009

1.45%

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 amount USD

Derivative receivables/(payables) 31/12/2006

31/12/2007

31/12/2008

31/03/2008

31/03/2009

Cross Currency Swap Contracts: a. Standard Chartered Bank b. JPMorgan Chase Bank c. Standard Chartered Bank d. PT Bank DBS Indonesia e. Standard Chartered Bank

10,000,000

-

317

26,440

694

29,480

25,000,000

-

3,834

59,537

(350)

68,548

15,000,000

-

1,216

40,455

1,780

45,581

15,000,000

-

8,432

38,712

5,479

43,469

12,500,000

-

6,340

35,572

5,960

40,134

Derivatives receivable

-

20,139

200,716

13,913

227,212

Derivatives payable

-

-

-

Page 56

(350)

-

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 24.

DERIVATIVES (continued) 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 USD 25,000,000 times the fixed interest rate of 9.99% per annum with a strike rate of Rp 9,000 (full amount) per USD, and will receive payment in USD amounting to USD 25,000,000 times the 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 USD 12,500,000 times the fixed interest rate of 7.73% per annum with a strike rate of Rp 9,000 (full amount) per USD, and will receive payment in USD amounting to USD 12,500,000 times the floating rate of interest at quarterly intervals of three months’ LIBOR plus 0.95%.

Page 57

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 24.

DERIVATIVES (continued) 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: Creditor

Notional amount

Fixed interest rate

Maturity date of 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 rate

Interest exchange periode

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

Standard Chartered Bank

USD 152,821,077

2.575%

15 January 2011

Standard Chartered Bank

USD 137,538,969

2.575%

15 July 2011

Standard Chartered Bank

USD 122,256,862

2.575%

15 January 2012

Standard Chartered Bank

USD 106,974,754

2.575%

15 July 2012

Standard Chartered Bank

USD 91,692,647

2.575%

15 January 2013

Standard Chartered Bank

USD 76,410,539

2.575%

15 July 2013

Standard Chartered Bank

USD 61,128,431

2.575%

15 January 2014

Standard Chartered Bank

USD 45,846,323

2.575%

15 July 2014

Standard Chartered Bank

USD 30,564,215

2.575%

15 January 2015

Standard Chartered Bank

USD 15,282,108

2.575%

15 July 2015

Creditor g.

Standard Chartered Bank

Notional amount

Page 58

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 24.

DERIVATIVES (continued) Below are the details of the interest rate swap contracts: Notional amount USD

Derivative payables 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 b. Standard Chartered Bank 30,000,000 c. Standard Chartered Bank 10,000,000 d. Standard Chartered Bank 10,000,000 e. PT Bank DBS Indonesia 20,000,000 f. Bank Mizuho Indonesia 12,500,000 g. Standard Chartered Indonesia 198,667,400 Derivative payables

-

-

(6,341)

(3,768)

(6,416)

-

-

(11,655)

(7,518)

(13,067)

-

-

(4,131)

(2,542)

(4,287)

-

-

(4,236)

(2,548)

(4,308)

-

-

(6,885)

(4,601)

(6,147)

-

-

(3,580)

(2,665)

(3,011)

-

-

-

-

(36,828 )

-

(31,272)

(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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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 supplied by HTI from time to time, following the issue of one or more purchase orders by the 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 supplied by HTI from time to time, following the issue of one or more purchase orders by the 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 threemonth 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 27.

SIGNIFICANT AGREEMENTS WITH THIRD PARTIES (continued) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 27.

SIGNIFICANT AGREEMENTS WITH THIRD PARTIES (continued) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 27.

SIGNIFICANT AGREEMENTS WITH THIRD PARTIES (continued) 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 (full amount) Assets Cash and cash equivalents Trade receivables

USD USD

Equivalent to million Rupiah

24,201,314 6,378,078

Total Assets Liabilities Trade payables

218,296 57,530 275,826

USD EUR SGD CHF

132,421,494 7,494,784 112,563 8,062

1,194,442 88,874 662 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 Foreign currencies (full amount)

Assets Cash and cash equivalents Trade receivables

USD USD

23,797,505 10,796,026

Total Assets Liabilities Trade payables

Equivalent to million Rupiah 224,149 101,688 325,837

USD EUR AUD SGD CHF

234,080,435 2,321,155 40,000 117,556 9,221

2,204,804 31,939 329 764 76

Other payables

USD

21,545,819

202,940

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

Long-term bonds - principal

USD

250,000,000

2,354,750

Total Liabilities

10,258,622

Net Liabilities

9,932,785 Page 65

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 28.

MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (continued) 31/12/2008 Foreign currencies (full amount) Assets Cash and cash equivalents Trade receivables Other assets

USD USD USD

Equivalent to million Rupiah

80,283,749 10,196,642 1,521,841

Total Assets Liabilities Trade payables

879,107 111,653 16,664 1,007,424

USD EUR AUD SGD CHF

225,613,590 2,104,628 5,000 250,896 24,161

2,470,469 32,479 38 1,909 250

Other payables

USD

7,658,097

83,856

Short-term loans

USD

50,000,000

547,500

Current maturity of long-term loans – p rincipal

USD

30,564,215

334,678

Long-term loans - principal

USD

653,385,293

7,154,569

Long-term bonds - principal

USD

127,702,000

1,398,337

Total Liabilities

12,024,085

Net Liabilities

11,016,661 31/03/2008 Foreign currencies (full amount)

Assets Cash and cash equivalents Trade receivables

USD USD

11,891,851 11,996,859

Total Assets Liabilities Trade payables

Equivalent to million Rupiah 109,607 110,575 220,182

USD EUR SGD CHF AUD

254,071,896 2,643,003 248,677 5,166 3,488

2,341,781 38,479 1,662 48 29

Other payables

USD

5,747,466

52,974

Short-term loans

USD

100,000,000

921,700

Long-term loans - principal

USD

230,000,000

2,119,910

Page 66

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 28.

MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (continued) 31/03/2008 Foreign currencies (full amount)

Equivalent to million Rupiah

Liabilities (continued) Long-term bonds - principal

USD

250,000,000

2,304,250

Total Liabilities

7,780,833

Net Liabilities

7,560,651 31/03/2009 Foreign currencies (full amount)

Assets Cash and cash equivalents Trade receivables Other assets

USD USD USD

6,081,814 11,913,049 49,605,317

Total Assets Liabilities Trade payables

Equivalent to million Rupiah 70,397 137,894 574,181 782.472

USD EUR SGD CHF GBP

206,587,064 894,745 212,302 21,230 1,260

2,391,245 13,714 1,617 214 21

Other payables

USD

4,778,200

55,308

Current maturity of long-term loans – p rincipal

USD

98,218,388

1,136,878

Long-term loans - principal

USD

694,028,221

8,033,377

Long-term bonds - principal

USD

127,702,000

1,478,151

Total Liabilities

13,110,525

Net Liabilities

12,328,053

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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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

PT EXCELCOMINDO PRATAMA Tbk AND SUBSIDIARIES 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) 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