by djoko soesilo (IRCS)

Corporate Presentation

PT Telekomunikasi Indonesia Tbk.

INVESTOR SUMMIT

2

Disclaimer

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

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

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

3

Content

A. TELKOM in Brief

B. Telco Industry in Indonesia

C. Share Price Performance

D. Operational Performances

E. Financial Performances

F. Recent Developments

4

Goverment of Indonesia

Public� Local 7.71 %� Foreign 39.85 %

Mostly US

Investors

TELKOM Ownership and its business…

Division &

Subsidiaries

Market Position

52.44% 48.8%

Fixed Phone

� Divisions :Regional 1-7, Fixed Wireless Network, Long Distance

� Subsidiaries

Cellular Multimedia

� TLKM 65%

� SingTel 35%

� Division : MM

� Metra, Indonusa, Infomedia

Market leader with

more than 90% market

share

No. 1 mobile

operator

Market Challenger

with significant growth

As of September 30, 2007 & 2008

Treasury Stock

(480.163.000)

5

Board of Directors

PresidentDirector

Rinaldi Firmansyah

FinanceDirector

Sudiro Asno

Enterprise &WholesaleDirector

Arief Yahya

NetworkSolutionDirector

Ermady Dahlan

ConsumerDirector

I Nyoman G Wiryanata

HumanCapital &GeneralAffairs Director

Faisal Syam

InformationTechnology& CIODirector

Indra Utoyo

Compliance &RiskManagementDirector

Prasetio

6

Highly Performance Organization lead to Some Domestic and International Recognitions …

Until September 2008 :� Ranked 1 in the 2007 Annual Report Award (ARA) in

BUMN Non Financial – Listed of Indonesia

� Ranked 1 in ISRA (Indonesia Social Responsibility

Award) 2008

� The best in Indonesian Financial Reporting Award

(IFRA) for company which has a great loyalty to

Bapepam-LK Regulation

� Wealth Added Creator Award 2008, from SWA

Magazine, Stren & Co, SWANETWORK for Best Public

Companies Base on Wealth Added Index and Best

Public Companies

ARA ISRA

IFRA

7

Content

A. TELKOM in Brief

B. Telco Industry in Indonesia

C. Share Price Performance

D. Operational Performances

E. Financial Performances

F. Recent Developments

8

Indonesia : 4th populous country with steady economic growth

Wireless market grew at

5 times economic growth

3851

67

83

24%

31%34%31%

2005 2006 2007 2008E

Market Revenue(Rp. Tr)

Growth (%)

Wireless Market Revenue

4th most populous nation

■ Population: approx. 230 million +

■ Young dynamic population

2005 2006 2007

Economic Growth 5.32% 5.5% 6.32%

Population by Age

9

Subscribers growth shared among 11 players

116

133

151164

178

9 10 10 11 1218 2027

3543

2008E 2009E 2010E 2011E 2012E

Cellular

PSTN, ISDN, xDSL

Fixed Wireless

FWL,

FWA, BB Cellular

Cellular,

FWA, BB

Cellular,

BB Cellular FWA Cellular Cellular Cellular Cellular Satellite

11 Operators and Services

Subscribers (millions)

Source: Independent Analyst Reports

10

Content

A. TELKOM in Brief

B. Telco Industry in Indonesia

C. Share Price Performance

D. Operational Performances

E. Financial Performances

F. Recent Developments

TELKOM as a Biggest Market Cap at IDX

9.7 9.9

10.810.2

8.9 8.98.6

9.49.8

10.8

108.9

144.1

161.3155.2159.1

163.3

178.4

194.5197.6186.5

0

2

4

6

8

10

12

Jan'08 Feb'08 Mar'08 Apr'08 May'08 Jun'08 Jul'08 Agst'08 Sept'08 Oct'08

%

0

50

100

150

200

250

Rp.T

Market Cap (%)

Market Cap (Rp.T)

Composition of TLKM’s Market Cap from Total IDX (in % )

12

Content

A. TELKOM in Brief

B. Telco Industry in Indonesia

C. Share Price Performance

D. Operational Performances

E. Financial Performances

F. Recent Developments

13

Continued Growth in Operations...As of September 30, 2007 & 2008

Cellular

Business

Cellular Subscin milion

Fixed Wireless

Business

Fixed Wireless Subs.in milion

Data & Internet

Business

ADSL Speedy Subs.in ‘000

Fixed Wireline

Business

Fixed Wireline Subs.in milion

44.5

60.5

3Q/07 3Q/08

▲36%

8.7 8.6

3Q/07 3Q/08

▼2%

5.6

9.1

3Q/07 3Q/08

▲63%

209

593

3Q/07 3Q/08

▲184%

14

Cellular Business...

Subscriberin mn

MoUin bn minutes

BTS

Increasing MoU and

managing RPM

■ TSEL delivering price elasticity for both voice and sms

■ Different pricing strategy for different segment will

optimize elasticity factor

Better network deployment

■ Growth of BTS ’07-EoY 08: 26-31%

■ 2008 total BTS will be 25 – 28K

■ 2008 total TRX will be 300 K

44.5

60.5

3Q/07 3Q/08

▲36%

18

59

3Q/07 3Q/08

▲234%

19,767

25,089

3Q/07 3Q/08

▲27%

As of September 30, 2007 & 2008

15

Fixed Line Business

14.3

17.7

3Q/07 3Q/08

Total

Fixed Line

Subs.in milion

Fixed Wireline

Business

Fixed Wireline Subs.in milion

Fixed wireline business will focus on

enterprise market…

■ Despite the declining fixed-voice market revenue

pool, enterprise access & connectivity market

projected to grow

■ TLKM strategy to reduce declining wireline revenue

is by expanding on enterprise market

8.7 8.6

3Q/07 3Q/08

▼2%

▲24%

As of September 30, 2007 & 2008

16

Fixed Wireless Business

389

514

3Q/07 3Q/08

MoUin bn seconds

� Available in 321 cities

with 3,181 BTS

� ARPU (Blended)Rp. 40 K

TELKOM FlexiFixed Wireless

▲32%1,677

3,181

3Q/07 3Q/08

▲90%

BTS

(unit)

Fixed Wireless Subs.in milion

5.6

9.1

3Q/07 3Q/08

▲63%

As of September 30, 2007 & 2008

17

Broadband Internet Business...As of September 30, 2007 & 2008

Telkomsel5%

TELKOM65%

Others30%

Opportunity in Broadband …

■ Indonesia has a huge BB market

■ In 2007 TLKM Group grabbed ~70% of BB subscriber

■ Synovate/APJII estimates 2.5 million internet subscribers & 31

million users in 2010

Market Share of Broadband

209

593

3Q/07 3Q/08

Subscribersin 000

▲184%

18

Content

A. TELKOM in Brief

B. Telco Industry in Indonesia

C. Share Price Performance

D. Operational Performances

E. Financial Performances

F. Recent Developments

19

Financial HighlightsAs of September 30, 2007 & 2008

19191919

63.5% 58.3%

3Q/07 3Q/08

27.726.0

3Q/07 3Q/08

43.6 44.6

23.8

27.4

9.8 8.9

3Q/07 3Q/08

Operating

Revenues

▲2.2%

Operating

Expenses

▲15.5%

Net Income

▼9.2%

in Rp Tr.

EBITDA Margin

▼▼5.2%

NI / Share = Rp.451.1

EBITDA (Rp.T)

▼▼6.2%

20

Revenues DriversAs of September 30, 2007 & 2008

0.6

0.8

3Q/07 3Q/08

Operating

Revenue

43.6 44.6

3Q/07 3Q/08

10.210.8

3Q/07 3Q/08

Data &

InternetCellular Network

16.7

18.3

3Q/07 3Q/08

� Speedy subscriber (▲184%)

Data & Internet

� MoU (▲234%)

� Subscriber (▲36%)

Cellular

� Leased Line Revenue (▲231%)

Network

in Rp Tr.in Rp Tr.

▲2.2%

▲5.9%

▲9.4%

▲32.4%

21

Expense DriversAs of September 30, 2007 & 2008

7.0

8.0

3Q/07 3Q/08

Depreciation

6.8

8.7

3Q/07 3Q/08

O & M

1.21.6

3Q/07 3Q/08

Marketing

6.26.5

3Q/07 3Q/08

Personnel

23.8

27.4

3Q/07 3Q/08

Operating

Expense

� Telkomsel Network Infrastructure Growth

Depreciation

� Telkomsel’s BTS (▲27%)

� Telkomsel’s Capacity (▲30%)

Affected in increasing frequency fees and repair & maintenance cost for the network equipment

Operation, Maintenance

& Telecom. Service

� Due to increasing competition (cellular & wireless market)

Marketing

� Pension cost increased due to decreasing the discount rate for actuary calculation by 0.25%

Personnel

in Rp Tr. in Rp Tr.

▲15.5%

▲13.8%

▲27.7%

▲36.0%

▲4.9%

22

Capital ExpenditureAs of September 30, 2007 & 2008

� Optimizing Legacy

� New Wave

� Infrastructure

� Support

CAPEX Absorption in 3Q/08(Rp Tr)

14.8

3.9

10.7

TELKOM Group Telkom(Unconsolidated)

Telkomsel

23

Consolidated Debt

Yen1,141

IDR12,913

USD3,911

EuroYen1,095

Euro190

USD5,132

IDR7,434

3Q/2007Total Rp. 13,851 bn

3Q/2008Total Rp. 17,964 bn

TELKOM hedged its foreign currency exposures through time deposit placements,

mainly in US Dollars that covered 24.8% of foreign debts from October 1, 2008 to

September 30, 2009

54%37%

8%

72%

22%

6%

(0%)(1%)

As of September 30, 2007 & 2008

24

Increased Positive Cash Flow...As of September 30, 2007 & 2008

Cash and Cash Equivalent

at End of Period

10.18.3Cash and Cash Equivalent

at Beginning of Year

(2.6)(1.7)Net (Decrease) Increase

in Cash and Cash Equivalents

(8.9)(9.7)� Financing Activities

(12.7)(11.3)� Investing Activities

19.019.3� Operating Activities

Net Cash :

3Q/083Q/07in Rp Tr.

6.5 7.6

25

Content

A. TELKOM in Brief

B. Telco Industry in Indonesia

C. Share Price Performance

D. Operational Performances

E. Financial Performances

F. Recent Developments

26

Recent Developments

■ Approve Mr Bobby A.A. Nazief as Commissioner for 5 years

■ Approve the extension of the term of the Company’s Board of Commissioner (until the closing of the Company’s Annual General Meeting of Shareholders in 2009)

Resolution of the

Extraordinary General

Meeting of Shareholders

(September 19, 2008)

■ Total funds which be allocated is Rp. 3 Tr

■ The funds will be taken from un-appropriated retained earning as of December 31, 2007 (Rp. 22.2 Tr).

New Share Buyback

Program

(based on BAPEPAM Regulation)

■ Telkom and Indonusa Telemedia joined forces with PCCW to increase the business growth of Pay TV Services in Indonesia

● Available on 3 service delivery platform (broadband internet, Satellite TV and mobile content)

● Will service more than 230 million population of Indonesia

Bring world-class Pay

TV Services to

Indonesia

by djoko soesilo (IRCS)

Thank You

www.telkom-indonesia.com