PT Telekomunikasi Indonesia

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

[Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934

[If “yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereunto duly authorized.

TELKOM is currently undergoing an audit of its 2002 financial statements and believes that it will need to make several adjustments to its previously issued 2002 financial statements. The adjustments will affect financial information prepared under both Indonesian and U.S. generally accepted accounting principles. As a result, the third quarter 2002 and third quarter 2003 financial information presented herein will also need to be adjusted based on the outcome of the 2002 audit. For additional information regarding the audit of TELKOM’s 2002 financial statements, please see TELKOM’s press releases including the most recent press release dated November 6, 2003. This document contains certain financial information and results of operations, and may also contain certain projections, plans, strategies, and objectives of the Company, which are not strictly historical statements and constitute forward looking statements within the meaning of applicable laws. Forward looking statements in this document are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that statements in this press release that constitute forward looking statements by their nature involve risks and uncertainties, including that actual results and developments could differ materially from those expressed or implied in these statements. TELKOM provides no assurances that any action taken in reliance on forward looking statements in this document will bring the expected results.

TICKERS

• NYSE : TLK

• LSE : TKID

• JSX : TLKM

DIVISIONS

• Telkom Regions: I, II,III, V, VI

• KSO Regions : IV, VII

SHARES IN ISSUE

10,079,999,639 shares

MAJOR SHAREHOLDERS

• Govt. of Indonesia 51.19%

• Public 48.81%

CONVERSION RATES (US$1.00)

2003 = Rp. 8,562,- Oct’ 28’03
2002 = Rp. 9,195,- Nov’8’02

Stock Performance Q3/03

(STOCK PERFORMANCE GRAPHIC)

Investor Relation Dept.
PT. TELKOM
Grha Citra Caraka
Jl. Gatot Subroto Kav 52
Jakarta 12710
Phone : 62 21 5215109
Fax : 62 21 5220500
Email : investor@telkom.co.id
Website : http//www.telkom.co.id

FINANCIAL HIGHLIGHTS (consolidated)


In millions Rp.
Key	*Q-3)**			Q-3)**		Growth
Indicators	2002			2003		(%)

Operating Revenues		15,623,218			19,977,361		27.87
Operating Expenses		7,950,278			10,402,360		30.84
Operating Income		7,672,940			9,575,001		24.79
Net Income		7,568,457***	)		4,371,964		(42.23	)
EBITDA		10,238,826			12,896,317		25.96
Net Income per share (EPS)		750.84			433.73		(42.23	)
Net Income per ADS		15,016.78			8,674.53		(42.23	)


*)		The consolidated subsidiaries Q3/2002: Telkomsel (*65.0%), Infomedia (51%), Indonusa (57.50%), Graha Sarana Duta (99.99%), Dayamitra (90.32%), PIN (30.0%*)
**)		For Q3/2003, ten subsidiaries were consolidated within the Company’s Consolidated Financial Statements namely: Telkomsel (*65%), Infomedia (51%), Indonusa (88.08%), Graha Sarana Duta (99.99%), Dayamitra (90.32%) Pramindo Ikat Nusantara (“Pramindo”) (45%), Aria West International (“AriaWestI”) (100%), NAPSINDO (60%), Metra (100%), Pro Infokom (51%*).
***)		Including Rp.3.19 trillion gain from selling of Telkomsel

• Increase of Operating Revenues

Total consolidated Operating Revenues grew by 27.87% to Rp. 19,977.36 billion. The main contributors to the growth of Operating Revenues were generated by the growth of Data and Internet (100.24%), Network (46.80%), Interconnection (43.80%) and Cellular revenues (38.06%). While, fixed phone revenue still showed growth by 14.23%.

• Increase of Operating Expenses

Total consolidated Operating Expenses grew by 30.84%% to Rp. 10,402.36 billion. The main contributors to the growth of Operating Expenses were generated by the growth of Marketing (44.77%), Personnel (44.50%) and Operation & Maintenance Expenses (40.75%).

• Increase of Operating Income

Total Operating Income increased by 24.79% to Rp. 9,575.0 billion.

• Decrease of Net Income

For the third quarter of 2003 the Company reported Net Income of Rp. 4,371.96 billion, representing a decrease of 42.23% compared to figure of the comparable period of 2002, due to the year 2002 gain on TELKOM’s 12.72% sales of Telkomsel shares to SingTel.

• Steady growth of Line in Service

TELKOM recorded 8.24 million fixed lines in service, which grew by 7.95%, and consisted of 6.8 million lines in TELKOM Regions and 1.4 million lines in KSO Regions. The main contributors of the line in service growth were from TELKOM Regions-VI (24.15%), Regions-I (9.48%) and Regions-V (8.74%).

• Strong growth in Cellular subscribers

As of September 30, 2003 Telkomsel recorded 8,792,871 subscribers which grew by 75.98% compared to the comparable period of 2002. The total additional subscribers were 2,782,099 which was 59.48% higher compared to subscribers added during the third quarter year 2002.

PT. TELEKOMUNIKASI INDONESIA, Tbk.
ANNOUNCEMENT FOR THE THIRD QUARTER 2003 RESULTS
Consolidated Net Income for the third Quarter 2003
was Rp 4.37 trillion (or decreased by 42.23%)

Jakarta, November 6, 2003 - PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), today announced its unaudited consolidated financial statements and operational results for the third quarter 2003. All figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP).

BUSINESS HIGHLIGHTS

Operating Revenues

The 27.87% growth of Operating Revenues was mainly contributed by:

a. Fixed phone revenues amounted to Rp. 7.1 trillion (including revenue from TelkomFlexi amounted to Rp.35.9 billion) or grew by 14.23%, which was reflected by the 7.9% of subscriber growth and the impact of consolidation of KSO-III.

b. Cellular revenues amounted to Rp. 6.1 trillion or grew by 38.1%, as a result of the significant growth rate in the number of prepaid subscribers (grew by 92.2%).

c. Interconnection revenues amounted to Rp. 3.2 trillion or grew by 43.8%, mainly driven by growing of traffic from cellular operators, revenue from infrastructure lease to other operators as well as international traffic usage.

d. Data and Internet revenues amounted to Rp. 2.1 trillion or grew by 100.2%, which was mainly contributed by SMS revenues amounting to Rp.1.5 trillion (grew by 132.0%). The other contributors were VoIP and Telkomnet Instan revenue which amounted to Rp. 258.5 billion (grew by 69.01%), Rp.342.4 billion (grew by 52.06%), respectively.

e. Network revenues amounted to Rp.329.9 billion or grew by 46.8%, which resulted primarily from by the increase of transponder leases and leased channel.

Operating Expenses

The 30.84% growth in Operating Expenses was mainly contributed by:

a. Personnel Expenses grew by 44.5%, which was mainly caused by :

(i) the consolidation of AriaWest (KSO-III), amounted to Rp.184.57 billion;

(ii) recognition of liabilities related to long service awards for employees in accordance to the International Accounting Standard amounted to Rp.82.9 billion;

(iii) additional obligations for provision of post retirement benefit - healthcare due to changes of previous medical cost trend assumption amounted to Rp.355.4 billion.

b. Operation, Maintenance & Telecommunications Services expenses increased to Rp. 2.5 trillion or grew by 40.6%, which was mainly driven by the increase of Telkomsel O&M as result of the growing numbers of BTS and TRX, the impact of consolidation KSO-III, PT AriaWest, Napsindo, PII and Metra and the increase of Radio frequency fee, electricity, water and gas.

c. Marketing expenses grew by 44.8% to Rp. 350.7 billion, which was caused by the increase of advertising and promotion expenses for the new products of TELKOM and Telkomsel.

Others — net

During the nine months of 2003, the Company recorded Others-net of minus Rp.537.09 billion, which consists of non core transactions. The Company recognized the revenues from the supporting business amounted to Rp.620.19 billion.

While on the other hand, the significant items included, among others:

(i) Accounting loss recognition related to consolidation of AriaWest equity (unaudited) amounted to Rp.486.75 billion (non-recurring);

(ii) Amortization of intangible assets & goodwill that come from buy out of KSO-VI, KSO-I and KSO-III for Rp.264.82 billion.

Tax Expenses

The rate of Income Tax as reflected in Q3/2003 was 34%, in which 4.6% was from the Non Tax Deductible Expense (NDE) for the current fiscal period such as employee benefit and other personnel expenses, amortization of intangible asset and impact of AriaWest consolidation.

Therefore, without considering NDE the effective tax rate would be 29.4%.

As comparison, the income tax rate in Q3/2002 was 20.59% based on the income before tax including extra gain on selling of Telkomsel’s shares, or 29.1% if exclude the extra gain.

Fixed-Lines in Service (including Fixed Wireless)

As of September 30, 2003, TELKOM and all KSO Units recorded 8,248,826 fixed lines in service, consisting of 6,827,945 lines in service in TELKOM Regions, while 1,420,881 lines in service were in KSO Regions.

Net additional lines in service during the third quarter year 2003 were 607,765 lines, which was 99.85% higher to the figure of the comparable period of 2002. Of the net

additional lines in service, 535,295 lines were in TELKOM Regions and 72,470 lines were in KSO Regions.

As of September 30, 2003, the subscriber-mix consists of 20.12% business, 79.68% residential and 0.22% social subscribers.

For the Operational Performance of the third quarter year 2003, please refer to Table 4.

Fixed-Wireless CDMA Services

As of the end of third quarter 2003, the amount of TELKOMFlexi subscribers in 16 major cities in Indonesia was 128,176 subscribers (recorded as line in service).

For detailed information refer to the following table:


		Unit	As of Sept' 03

Customer Based (sales)
- Postpaid
	- ESN	Subscribers		118,138
	- Classy	Subscribers		651
- Prepaid (Trendy)		Subscribers		55,752
*Total Sales)**		Subscribers		174,541
ARPU/month
- Post paid		Rp		171,000
- Prepaid**)		Rp		n.a
Blended		Rp		171,000
Network Data
- BTS		Unit		191
- Home Location Register (HLR)		Subscribers		387,570

*)		Subscribers plus sales on starter pack
**)		Prepaid was launched on Sept 18’03

Cellular Services

As of September 30, 2003, the number of active cellular subscribers of TELKOM’s associated companies were 8,797,940. The breakdown of each operator is as follows:

Operator,

and TELKOM's %

Sep'30

Growth

of ownership

2002

2003

(%)

TELKOMSEL (65.00)*)

4,996,443

8,792,871

75.98

MOBISEL (7.44)

7,543

5,069

(32.80

)

TOTAL

5,003,986

8,797,940

75.82

Telkomsel’s prepaid subscribers: 88.7%

ARPU:		Postpaid: Rp 312,000; total subs.: 989,994
		Prepaid: Rp 93,000; total subs.: 7,802,877
		Blended: Rp 123,000; total subs.: 8,792,871

As of September 30, 2003, among the eight cellular companies, Telkomsel (based on statistic compiled by TELKOM) held approximately 54.46% market share of cellular market in Indonesia.

Since August 8, 2003 TELKOM no longer holds any shares in Komselindo, Metrosel and Telesera as a result of a share-swap agreement with PT. Centralindo Panca Sakti Cellular.

Data and Internet Services

By the end of September 2003, total usage access of TELKOMNet Instan was 1,414.55 million minutes or grew by 11.55% compared to the figure of the comparable period

of last year. Meanwhile TELKOMSave and TELKOMGlobal usage access was 48.84 million minutes or grew 156.11% compared to the last year figure.

CAPITAL EXPENDITURE

TELKOM (as single entity)

By September 30, 2003, CAPEX spent was Rp. 6,155.61 billion. Out of this amount, the Company spent approximately:

a. Rp. 735.67 billion for infrastructure development (transmission, data backbone and PSTN backbone);

b. Rp. 438.27 billion for Phone-Net (access, switching), View-net (Hybrid Fiber Coaxial), Internet (B2B, VoIP, Multimedia), and Services (Billing, TelkomSMS, etc);

c. Rp. 502.35 billion for CDMA project;

d. Rp.4,415.51 billion for long term investment in subsidiaries, including 87.09% for closing the AriaWest transaction.

e. Rp. 63.81 billion for supporting facilities (building and power plant).

As of September 30, 2003, Capex for KSO-III spent was Rp.4,306.73 million for Fiber Access Network and supporting facilities.

Telkomsel

During the third quarter of year 2003, Telkomsel invested Rp. 4,027 billion (US$468 million) for network infrastructures and other investments. A number of 1,111 new Base Transceiver Stations (BTS) and 8,984 Transmitting & Receiving Exchanges (TRXs) were installed and 5,390,000 subscribers capacity were added during the period.

CONSOLIDATED DEBT

As of September 30, 2003, the breakdown of debt portfolio (short-term and long-term) in original currencies and Rupiah equivalents was as follows:


			Original		Rupiah
			Currencies		Equivalent
Currencies	Year		(millions)		(billions)		%

IDR/Rupiah		2002		5,232.41		5,232.41		38.22
		2003		4,520.93		4,520.93		32.25

US Dollar		2002		766.86		6,901.21		50.41
		2003		899.62		7,563.56		53.95

Japanese Yen		2002		18,193.00		1,345.16		9.83
		2003		17,616.97		1,343.67		9.58

Euro*)		2002		26.74		212.41		1.52
		2003		60.15		590.42		4.21

Total		2002				13,691.19		100.00
		2003				14,018.58		100.00

FRF and NLG have been converted to EUR

As of September 30, 2003, 32.25% of the total consolidated debt portfolio was denominated in Rupiah and 67.75% was denominated in foreign currencies, whereas in the same period of 2002, 38.49% of TELKOM’s debt portfolio was denominated in Rupiah and 61.51% was in foreign currencies.

TELKOM’s DEBTs (as single entity)

The breakdown of TELKOM portfolio (unconsolidated short-term and long-term) as of September 30, 2003 was as follows:


			Original		Rupiah
			Currencies		Equivalent
Currencies	Year		(millions)		(billions)		%

IDR/Rupiah		2002		4,722.66		4,722.66		41.85
		2003		4,457.71		4,457.71		38.19

US Dollar		2002		556.40		5,004.85		44.35
		2003		674.69		5,677.49		48.64

Japanese Yen		2002		18,193.00		1,345.16		11.92
		2003		17,616.97		1,343.67		11.51

Euro*)		2002		26.74		212.41		1.88
		2003		19.76		193.99		1.66

Total		2002				11,285.08		100.00
		2003				11,672.86		100.00

FRF and NLG have been converted to EUR

As of September 30, 2003, 38.19% of loan portfolio was denominated in Rupiah and 61.81% was denominated in foreign currencies, whereas in the same period of 2002, 41.85% was denominated in Rupiah and 58.15% was in foreign currencies.

TELKOM hedges its foreign currencies exposures through time deposit placement, mainly in US Dollar. As of September 30, 2003, the Company’s deposit was US$36.6 million, covering approximately 33.26% of all obligations in foreign currencies from October 2003 to December 2003 and covering approximately 8.04% of all obligations in foreign currencies from October 2003 to September 2004.

HUMAN RESOURCES

As of September 30, 2003, TELKOM’s (as single entity) total employees were 32,305 persons consisting of 25,291 persons in TELKOM Regions and 7,014 persons in the KSO Regions. As of September 30, 2003, a number of 4,655 employees have participated in the early retirement program while in the fourth quarter 2003 the Company have approved 1,422 employees.

Productivity per employee as measured by the number of fixed lines in service per employee as of September 30, 2003 was 255.34 while as of September 30, 2002 was 219.65.

RECENT DEVELOPMENTS

TELKOM acquires PT. AriaWest and settles ICC arbitration

On July 31, 2003, TELKOM has acquired all of the shares of PT. AriaWest (AriaWest) from PT Aria Infotek, Mediaone International IBV, a subsidiary of AT&T Wireless, and The Asian Infrastructure Fund, and has settle its ICC arbitration with AriaWest for US$58.67 million in cash and US$109.1 million in promissory notes which are interest free and payable in 10 semi-annual installments. At the same time, AriaWest’s debt has been restructured to the satisfaction of TELKOM, as required in the CSPA. Debt of US$99.07 million has been repaid on the closing date, and TELKOM

has assumed from AriaWest debt of US$196.97 million under a new four-year TELKOM loan facility.

Following the acquisition of AriaWest, TELKOM now fully operates, controls and manages KSO III which operates additional fixed-line telecommunications network and provides fixed-line service in West Java and Banten region.

TELKOM Signed Master of Procurement Partnertship Agreement with PT. INTI

On August 26, 2003, TELKOM and PT. INTI signed a Master of Procurement Partnership Agreement (“MPPA”) with a total contract value of US$22,147,267.19 and Rp.65,362,426,881. The agreement includes system planning, manufacturing, delivery and construction of Fixed Wireless Access CDMA 2000-1X system. The period of the agreement is 34 months as of the signing of the agreement which also include a Service Level Agreement (“SLA”) which amounted to US$1,368,366 and Rp.9,537,188,782. The MPPA between TELKOM and PT. INTI consist of the construction of 222,300 lines of Base Station System for US$111.36 per line in Regional Division III of West Java and Banten area.

TELKOM Signed Loan Agreement with the Korean Exim Bank

On August 27, 2003, TELKOM and The Export-Import Bank of Korea (“Korean Exim Bank”) signed a loan agreement for the amount of US$123,965,000 to finance the expenditure under the Master Procurement Partnership Agreement dated December 23, 2002 (“MPPA”) between TELKOM and Samsung Electronics Co, Ltd (“Samsung”) for the delivery of Fixed Wireless Access CDMA 200-1X system.

TELKOM and Siemens Consortium Sign Agreement for Development of Backbone Transmission in Kalimantan and Sulawesi.

On September 25, 2003, TELKOM signed a Partnership Agreement for Procurement and Installation of Network Backbone Transmission/T-21 Kalimantan and Sulawesi with Siemens Consortium, which consist of Siemens Ag, PT. Siemen Indonesia, PT LEN Industri and Corning Cable System. The agreement consist of two package transaction for development of fiber optic network transmission in Kalimantan (Package-1) with total contract value of USD3,776,269 and IDR74,020,633,646 and Sulawesi (Package-2) with total contract value of USD3,815,295 and Rp.70,732,644,265.

Interim Closing of PIN shares transaction

On September 30, 2003, Telkom and all shareholders of PT. Pramindo Ikat Nusantara (“Pramindo”) KSO partner in Division I Sumatra have conducted the Interim Closing of the Conditional Sales and Purchase Agreement (“Interim Closing”) for the acquisition of an additional 15% of Pramindo shares. The Interim Closing is part of a continuance to the initial closing which took place on August

15, 2002, during which TELKOM had acquired 30% of the shares. Further, subsequent closing for remaining 55% of the Pramindo shares will be conducted on December 15, 2004. With the Interim Closing, TELKOM currently owns 45% of Pramindo shares.

MGTI (KSO IV) progress

TELKOM plans to amend the status of the KSO Agreement in order to fully control and operate as well as obtain the right to develop telecommunication infrastructure in KSO IV Region.

By pursuing the KSO Agreement Amendment instead of continuing with the previous buy-out option, TELKOM will avoid spending an initial payment and utilize the fund for infrastructure development.

Regulatory update for Fixed Wireless Access

Based on the press release issued by the MOC Public Relations on November 3, 2003, the Ministry of Communication (MOC) have prepared a new decree for Fixed Wireless Access (FWA) which include the regulation of following aspects: (i) the service and operation of FWA, which also includes the service and operation by local circuits switch (PSTN) based fixed network operator using radio frequency access network (ii) the deployment of FWA shall only be allowed for local fixed network operator that have received license from the MOC (iii) the area of service for FWA shall utilize 1 area code, without auto mutation and no roaming; (iii) requirement to implement self accounting for operation; (iv) FWA operators shall implement self-allocation and self-numbering, while block numbering shall be determine by the Directorate General of Post and Telecommunications; (v) the tariff shall consist of post paid and prepaid, in addition operators should determine level of tariff in Rupiah unit per minute (not per pulse); (vi) the interconnection tariff for termination to FWA networks shall be determined by operators in which amount is different with termination to local fixed network, while the interconnection tariff to local fixed network and mobile network shall be determined in accordance to the applicable regulation (vii) provide table for radio frequency charges for FWA; which amount are below the radio frequency charges for GSM operators and CDMA cellular operators.

Outlook FY 2003

TELKOM expects EBITDA margin consolidated as well as unconsolidated sustained at least 60%. In Fixed Line business, TELKOM expects Line In Service growth approximately 7%, while in Fixed Wireless (CDMA) sales target approximately 50%-60% of total capacity FY 2003 (740K).

In cellular business, Telkomsel revised the FY 2003 subscriber base forecast upward to approximately 9.6 millions, with the network capacity of at least 10.5 million. EBITDA margin FY 2003 is expected around 68%-70%.

-s- W. SOERADJI
WOERYANTO SOERADJI
Corporate Secretary

Table 1-a
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, Tbk
BALANCE SHEET (Unaudited)
SEPTEMBER 30, 2002 AND 2003
(In Millions of Rupiah and Thousands of U.S. Dollar)


			Consolidated
									Unconsol.
			2002		2003				2003

			Rp		Rp		US $		Rp

ASSETS

CURRENT ASSETS
	Cash and cash equivalents			7,378,883		4,860,585		567,693		2,917,197
	Short-term investments — net			565,682		—		—		—
		Sub total		7,944,565		4,860,585		567,693		2,917,197
	Trade accounts receivables
		Related parties — net of allowance for doubtful accounts of Rp 616.387 million in 2003 and Rp 519.483 million in 2002		1,399,127		863,995		100,910		1,040,112
		Third parties — net of allowance for doubful accounts of Rp 413.959 million in 2003 and Rp 331.148 million in 2002		1,908,851		2,439,780		284,954		1,402,184
		Sub total		3,307,978		3,303,775		385,865		2,442,296
	Other account receivables — net of allowance for doubful accounts Rp 170.043 million in 2003 and Rp 31.216 million in 2002			166,849		285,928		33,395		2,112,055
	Inventories — net of allowance for obsolescence of Rp 51.345 million in 2003 and Rp 56.642 million in 2002			230,386		185,596		21,677		69,325
	Prepaid expenses			542,306		896,462		104,702		520,168
	Other current Assets			111,062		38,663		4,516		38,663
TOTAL CURRENT ASSETS				12,303,146		9,571,009		1,117,847		8,099,704

NON CURRENT ASSETS
	Long-term investments — net			104,348		69,741		8,145		7,113,162
	Property, plant and equipment — net of accumulated depreciation of Rp 23.813.004 million in 2003 and Rp 18.870.782 million in 2002			25,890,299		31,959,967		3,732,769		16,188,580
	Property, plant and equipment under revenue sharing arrangements — net of accumulated depreciation of Rp 876.749 million in 2003 and Rp 901.671 million in 2002			388,181		317,441		37,076		317,441
	Advances and other non current assets			998,996		307,906		35,962		242,651
	Intangible assets			2,163,862		3,283,817		383,535		2,790,936
	Advances payment for investment in share of stock			268,101		79,768		9,317		79,768
	Escrow accounts			129,292		447,838		52,305		447,838
	Property not used in operations			6,446		12,355		1,443		5,913
TOTAL NON CURRENT ASSETS				29,949,525		36,478,833		4,260,552		27,186,289

TOTAL ASSETS				42,252,671		46,049,842		5,378,399		35,285,993

Table 1-b (continued)
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, Tbk
BALANCE SHEET (Unaudited)
SEPTEMBER 30, 2002 AND 2003
(In Millions of Rupiah and Thousands of U.S. Dollar)


			Consolidated
												Unconsol.
			2002			2003						2003

			Rp			Rp			US $			Rp

LIABILITIES AND EQUITY

CURRENT LIABILITIES
	Trade accounts payable
		Related parties		1,162,709			723,204			84,467			507,699
		Third parties		1,783,909			2,365,467			276,275			1,165,690
	Other accounts payable			125,707			135,289			15,801			62,044
	Taxes payable			1,459,605			1,794,260			209,561			1,042,005
	Dividen payable			667,866			69,418			8,108			69,418
	Accrued expenses			1,516,889			2,876,231			335,930			2,344,957
	Unearned income			528,985			660,464			77,139			57,915
	Advances from customers and suppliers			836,434			692,107			80,834			581,924
	Short term bank loan			500,000			802,488			93,727			549,300
	Current maturities of long-term liabilities			2,321,110			1,323,833			154,617			1,018,981
	Liability for cross-ownership transactions			389,167			—			—			—
TOTAL CURRENT LIABILITIES				11,292,381			11,442,761			1,336,459			7,399,933

NON CURRENT LIABILITIES
	Deferred tax liabilities — net			1,971,291			1,528,421			178,512			639,469
	Unearned income under revenue sharing arrangements			180,202			122,924			14,357			122,924
	Unearned initial investor payment under joint operation scheme			67,453			28,876			3,373			111,282
	Long-term debts — net of current maturities
		Two-step loans — related parties		7,804,054			7,005,308			818,186			7,005,308
		Suppliers’ credit loans		283,351			64,804			7,569			—
		Bridging loan		81,498			25,726			3,005			—
		Project cost payable		189,876			—			—			—
		Bond		2,353,104			2,235,511			261,097			979,956
		Bank loan		149,040			1,790,838			209,161			1,358,398
		Other long-term debts		9,150			9,150			1,069			—
		Liability for acquisition of a subsidiaries		—			760,916			88,871			760,916
	Sub total long-term debts			10,870,073			11,892,253			1,388,958			10,104,578
Total Non Current Liabilities				13,089,019			13,572,474			1,585,200			10,978,253

MINORITY INTEREST IN NET ASSETS OF SUBSIDIARY				3,188,402			4,126,800			481,990			—

EQUITY
	Capital stock — Rp 500 par value per series-A Dwiwarna share and series-B shares. Authorized - 1 A Dwiwarna share and 39.999.999.999 B shares Issued and fully paid - 1 A Dwiwarna share and 10.079.999.639 B shares			5,040,000			5,040,000			588,648			5,040,000
	Additional paid-in capital			1,073,333			1,073,333			125,360			1,073,333
	Difference in value of resttructuring transactions between entities under common control			(7,402,343	)		(7,032,455	)		(821,357	)		(7,032,455	)
	Difference due to change of equity in associated companies			258,115			342,425			39,994			342,425
	Unrealized loss on decline in value of securities			—			—			—			—
	Transaction adjustment			179,668			160,599			18,757			160,599
	Retained earning:
		Appropriated		745,404			1,559,068			182,092			1,559,068
		Un-appropriated		14,788,692			15,764,837			1,841,256			15,764,837
TOTAL EQUITY				14,682,869			16,907,807			1,974,750			16,907,807

TOTAL LIABILITIES AND EQUITY				42,252,671			46,049,842			5,378,398			35,285,993

Table-2
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, Tbk
STATEMENT OF INCOME (Unaudited)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2003
(In Millions of Rupiah and Thousands of U.S. Dollar, except Share and ADS Data)


			Consolidated
												Unconsol.
			2002			2003						2003

			Rp			Rp			US $			Rp

OPERATING REVENUE
	Fixed Phone
		Wireline		6,235,286			7,086,618			827,683			4,365,993
		Wireless (incl. recognition of 95% revenues in KSO)		—			35,877			4,190			38,492
	Cellular			4,433,892			6,121,293			714,937			—
	Interconnection revenues			2,221,291			3,194,323			373,081			2,211,199
	Revenue under joint operation scheme			1,214,946			858,273			100,242			2,153,794
	Data and internet			1,073,962			2,150,469			251,164			534,329
	Network			224,771			329,956			38,537			587,879
	Revenues under revenue sharing arrangement			207,487			191,443			22,360			185,690
	Other telecommunications services			11,583			9,109			1,064			1,521
	Total Operating Revenue			15,623,218			19,977,361			2,333,258			10,078,897

OPERATING EXPENSES
	Personnel			2,201,959			3,181,770			371,615			2,157,811
	Depreciation			2,565,886			3,321,316			387,914			1,797,959
	Operation, maintenance and telecommunications services			1,839,633			2,589,311			302,419			865,461
	General and administrative			1,100,549			959,259			112,037			513,140
	Marketing			242,251			350,704			40,961			127,445
	Total Operating Expenses			7,950,278			10,402,360			1,214,945			5,461,816

OPERATING INCOME				7,672,940			9,575,001			1,118,312			4,617,081

OTHER INCOME (CHARGES)
	Interest income			452,172			220,315			25,732			190,308
	Interest expense			(1,289,328	)		(942,087	)		(110,031	)		(802,892	)
	Gain (loss) on foreign exchange — net			462,987			294,624			34,411			141,028
	Equity in net income (loss) of associated companies			(10,109	)		(28	)		(3	)		2,538,047
	Gain on sales of long-term investment			3,196,380			—			—			—
	Others — net			282,677			(537,098	)		(62,730	)		(938,108	)

	Total Other Income (Charges)			3,094,779			(964,274	)		(112,621	)		1,128,388

INCOME BEFORE TAX				10,767,719			8,610,727			1,005,691			5,745,469

TAX EXPENSE				(2,203,628	)		(2,926,473	)		(341,798	)		(1,373,505	)

INCOME BEFORE MINORITY INTEREST IN NET INCOME OF				8,564,091			5,684,254			663,893			4,371,964
	SUBSIDIARIES

PRE ACQUISITION (INCOME) LOSS OF SUBSIDIARIES				(142,817	)		(152,700	)		(17,835	)		—

MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES				(852,817	)		(1,159,590	)		(135,434	)		—

NET INCOME				7,568,457			4,371,964			510,624			4,371,964

NET INCOME PER SHARE				750.84			433.73			0.05			433.73

NET INCOME PER ADS (20 SERIES-B SHARES PER ADS)				15,016.78			8,674.53			1.01			8,674.53

Table-3.a: Breakdown of the Statement of Income (Unaudited)
For the Nine month ended September 30, 2002 and 2003


		2002		2003		Growth
		(Rp. Million)		(Rp. Million)		(%)

1		2		3		4 = (3-2)/2

OPERATING REVENUE
Fixed Phone
	Local		1,702,922		1,863,471		9.43
	Long distance		3,080,476		3,422,154		11.09
	Monthly subscription charges		1,218,938		1,506,697		23.61
	Instalation charges		116,089		163,448		40.80
	Phone card — net		26,895		24,867		-7.54
	Others		89,966		141,858		57.68
	Total Fixed Phone Revenues		6,235,286		7,122,495		14.23

Cellular			4,433,892		6,121,293		38.06
Interconnection
	International calls		214,978		268,578		24.93
	Cellular		1,338,900		2,011,382		50.23
	Others		667,413		914,362		37.00
	Total Interconnection Revenues		2,221,291		3,194,323		43.80
Revenue Under Joint Operation Scheme (JOS)
	Minimum TELKOM Revenue (MTR)		767,590		493,117		-35.76
	Distributable TELKOM Revenue (DTR)		446,745		361,149		-19.16
	Amortization of Initial Investor Payments		611		4,007		555.81
	Total Revenue under JOS		1,214,946		858,273		-29.36
Data and Internet
	SMS		642,146		1,489,708		131.99
	VoIP		152,958		258,511		69.01
	Multimedia
	— Telkomnet Instan		225,183		342,415		52.06
	— Other Multimedia (ISDN, etc)		53,675		59,835		11.48
	Total Data and Internet Revenues		1,073,962		2,150,469		100.24
Network
	Leased lines		77,869		139,587		79.26
	Satellite transponder		146,902		190,369		29.59
	Total Network Revenues		224,771		329,956		46.80

Revenues under Revenue Sharing Arrangement			207,487		191,443		-7.73
Other Telecommunication Services (OTS)
	Telex and telegram		3,045		2,117		-30.48
	Others		8,538		6,992		-18.11
	Total OTS Revenues		11,583		9,109		-21.36
TOTAL OPERATING REVENUES			15,623,218		19,977,361		27.87
OPERATING EXPENSES
Personnel			2,201,959		3,181,770		44.50

Depreciation			2,565,886		3,321,316		29.44
Operation, maintenance and telecommunications services
	Operation and maintenance		823,752		1,184,624		43.81
	Cost of phone cards		128,160		123,568		-3.58
	Lisence (Concession fees & radio frequency usage charges)		335,313		561,172		67.36
	Others (rent, electricity, etc)		552,408		719,947		30.33
	Total O & M		1,839,633		2,589,311		40.75
General and administrative
	Provision for doubful account and inventory obsolescence		322,300		200,095		-37.92
	Training, education and recruitment		103,955		105,320		1.31
	Research, development and consultant		228,818		136,611		-40.30
	Others		445,476		517,233		16.11
	Total G & A		1,100,549		959,259		-12.84

Marketing			242,251		350,704		44.77

TOTAL OPERATING EXPENSES			7,950,278		10,402,360		30.84

OPERATING INCOME			7,672,940		9,575,001		24.79

Table -3.b.: Breakdown of the Statement of Income (Continued)
For the Nine month ended September 30, 2002 and 2003

2002

2003

Growth

(Rp. Million)

(%)

4 = (3-2)/2

OPERATING INCOME

7,672,940

9,575,001

24.79

OTHER INCOME (CHARGE)

Interest income

452,172

220,315

-51.28

Interest expense

(1,289,328

)

(942,087

)

-26.93

Gain (loss) on foreign exchange — net

462,987

294,624

-36.36

Equity in net income (loss) of associated companies

(10,109

)

(28

)

-99.72

Gain (loss) on sales investment

3,196,380

—

Others

282,677

(537,098

)

-290.00

Total Other Income (Charge)

3,094,779

(964,274

)

-131.16

INCOME BEFORE TAX

10,767,719

8,610,727

-20.03

TAX EXPENSE

(2,203,628

)

(2,926,473

)

32.80

INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES

8,564,091

5,684,254

-33.63

PRE ACQUISITION (INCOME) LOSS

(142,817

)

(152,700

)

6.92

MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES

(852,817

)

(1,159,590

)

35.97

NET INCOME

7,568,457

4,371,964

-42.23

NET INCOME PER SHARE

750.84

433.73

-42.23

NET INCOME PER ADS (20 B SHARE PER ADS)

15,016.78

8,674.53

-42.23


		2002		2003		Growth (%)

1		2		3		4=(3-2)/2

Contribution of pulses to total fixed-phone revenue:
	Local Calls (%)		27.31		26.16		-1.15
	Domestic Long Distance Calls (%)		49.40		48.05		-1.36
	Monthly subscription charges (%)		19.55		21.15		1.61
	Installation charges (%)		1.86		2.29		0.43
	Phone-card		0.43		0.35		-0.08
	Others (%)		1.44		1.99		0.55
Contribution to total operating revenues:
	Cellular (%)		28.38		30.64		2.26
	Fixed-phone (%)		39.91		35.65		-4.26
	Revenue under JOS (%)		7.78		4.30		-3.48
	Interconnection (%)		14.22		15.99		1.77
	Network (%)		1.44		1.65		0.21
	Data dan internet (%)		6.87		10.76		3.89
	Revenue under RSA (%)		1.33		0.96		-0.37
	Other telecommunications services (%)		0.07		0.05		-0.03
Fixed-phone revenue per average fixed-LIS/month *)			166,526		174,176		4.59
Fixed-phone revenue per average fixed-LIS/month **)			123,832		123,029		-0.65
EBITDA, consolidated (Rp million)			10,238,826		12,896,317		25.96
EBITDA margin, consolidated (%)			65.54		64.55		-0.98
Operating margin (%)			49.11		47.93		-1.18
Profit Margin (%)			48.44		21.88		-26.56
Current ratio (%)			108.95		83.64		-25.31
Return on Assets (%)			17.91		9.49		-8.42
Return on Equity (%)			51.55		25.86		-25.69
Average collection period (days)			49.78		43.94		-5.84
Average on Allowance for Bad Debt (%)			29.53		13.24		-16.29
Total Liabilities to Equity (%)			166.05		147.95		-18.10
Gearing (Net Debt to Equity) (%)			41.79		54.16		12.37
Debt to Equity (%)			95.90		82.91		-12.98
Debt to EBITDA (%)			137.52		108.70		-28.82
Debt Service Ratio (Times)			2.28		4.20		1.93
Weighted Average Cost of Capital (WACC) (%)			15.85		14.83		-1.02


			Unit	2002 *				2003		Growth (%)

1			2	3a		3b		4		5=(4-3b)/3b

Exchange Capacity
	TELKOM Division		Lines		5,240,636		6,472,168		7,776,868		20.16
	KSO Division		Lines		3,686,915		2,455,383		1,589,167		-35.28
	Total Exchange Cap (KSO & TELKOM Division )		Lines		8,927,551		8,927,551		9,366,035		4.91
Installed Lines
	TELKOM Division		Lines		4,896,584		6,070,635		7,476,550		23.16
	KSO Division		Lines		3,390,341		2,216,290		1,559,299		-29.64
	Total Installed Lines (KSO & TELKOM Division )		Lines		8,286,925		8,286,925		9,035,849		9.04
Subscribers — TELKOM Division
	Non PBH Subscribers :		Lines		3,832,988		4,890,447		6,041,974		23.55
	PBH Subscribers		Lines		426,320		427,509		442,666		3.55
	Total Subscribers TELKOM Division		Lines		4,259,308		5,317,956		6,484,640		21.94
Subscribers — KSO Division
	Non PBH Subscribers :		Lines		2,968,559		1,911,100		1,363,730		-28.64
	PBH Subscribers		Lines		15,413		14,224		0		-100.00
	Total Subscribers KSO Division		Lines		2,983,972		1,925,324		1,363,730		-29.17
Subscribers -TELKOM & KSO Division
	Non PBH Subscribers :		Lines		6,801,547		6,801,547		7,405,704		8.88
	PBH Subscribers		Lines		441,733		441,733		442,666		0.21
	Total Subscribers -TELKOM & KSO Division		Lines		7,243,280		7,243,280		7,848,370		8.35
Public Phone — TELKOM Division
	Coin-Phone		Lines		50,589		56,697		52,807		-6.86
	Card-Phone		Lines		43,858		46,106		38,067		-17.44
		Total Payphone	Lines		94,447		102,803		90,874		-11.60
	Wartel		Lines		180,917		206,699		252,431		22.12
	Total Public Phone TELKOM Division		Lines		275,364		309,502		343,305		10.92
Public Phone — KSO Division
	Coin-Phone		Lines		29,463		23,355		8,671		-62.87
	Card-Phone		Lines		12,004		9,756		4,850		-50.29
		Total Payphone	Lines		41,467		33,111		13,521		-59.16
	Wartel		Lines		80,950		55,168		43,630		-20.91
	Total Public Phone KSO Division		Lines		122,417		88,279		57,151		-35.26
Public Phone (TELKOM & KSO Division )
	Coin-Phone		Lines		80,052		80,052		61,478		-23.20
	Card-Phone		Lines		55,862		55,862		42,917		-23.17
	Total Payphone		Lines		135,914		135,914		104,395		-23.19
	Wartel/Kiosk/TUT		Lines		261,867		261,867		296,061		13.06
	Total Public Phone (TELKOM & KSO Division )		Lines		397,781		397,781		400,456		0.67
Lines In Services (Wireline)
	TELKOM Division		Lines		4,526,184		5,618,970		6,715,954		19.52
	KSO Division		Lines		3,106,389		2,013,603		1,404,706		-30.24
	Total Lines In Services (TELKOM & KSO Division )		Lines		7,632,573		7,632,573		8,120,660		6.39
Lines In Services (Wireless)
	TELKOM Division		Lines		8,505		8,505		112,001		1216.88
	KSO Division		Lines		0		0		16,175		0.00
	Total Lines In Services (TELKOM & KSO Division )		Lines		8,505		8,505		128,176		1407.07
Lines In Services (Wireline+Wireless)
	TELKOM Division		Lines		4,534,672		5,627,458		6,827,945		21.33
	KSO Division		Lines		3,106,389		2,013,603		1,420,881		-29.44
	Total Lines In Services (TELKOM & KSO Division )		Lines		7,641,061		7,641,061		8,248,826		7.95


		Unit	2002*				2003		Growth (%)

1		2	3a		3b		4		5=(4-3b)/3b

Pulse Production:
Subscribers — TELKOM Division:
	Non-PBH Subscribers	Pulses		23,288,170,251		30,419,722,397		34,939,822,812		14.86	%
	PBH Subscribers	Pulses		2,988,089,738		3,005,280,260		3,036,826,842		1.05	%
	Total pulse production — TELKOM Division	Pulses		26,276,259,989		33,425,002,657		37,976,649,654		13.62	%
Subscribers — KSO Division:
	Non-PBH Subscribers	Pulses		19,719,181,330		12,587,629,184		8,877,487,611		-29.47	%
	PBH Subscribers	Pulses		106,913,818		89,723,296		0		-100.00	%
	Total pulse production — KSO Division	Pulses		19,826,095,148		12,677,352,480		8,877,487,611		-29.97	%
Subscribers (TELKOM & KSO Division)
	Non-PBH Subscribers	Pulses		43,007,351,580		43,007,351,580		43,817,310,423		1.88	%
	PBH Subscribers	Pulses		3,095,003,556		3,095,003,556		3,036,826,842		-1.88	%
	Total pulse production — KSO & TELKOM Division	Pulses		46,102,355,136		46,102,355,136		46,854,137,265		1.63	%
Public Phones — TELKOM Division
	Coin	Pulses		316,771,652		362,208,034		369,387,185		1.98	%
	Card-phone	Pulses		72,650,544		94,039,638		60,202,543		-35.98	%
	Wartel	Pulses		6,657,898,696		8,899,082,152		9,674,057,350		8.71	%
	Total public phone — TELKOM Division	Pulses		7,047,320,892		9,355,329,824		10,103,647,078		8.00	%
Public Phones — KSO Division
	Coin	Pulses		196,306,845		150,870,463		37,874,239		-74.90	%
	Card-phone	Pulses		50,254,806		28,865,712		3,175,491		-89.00	%
	Wartel	Pulses		7,167,874,281		4,926,690,825		3,550,717,685		-27.93	%
	Total public phone — KSO Division	Pulses		7,414,435,932		5,106,427,000		3,591,767,415		-29.66	%
Public Phones — TELKOM & KSO Division
	Coin	Pulses		513,078,496		513,078,496		407,261,425		-20.62	%
	Card-phone	Pulses		122,905,349		122,905,349		63,378,034		-48.43	%
	Wartel	Pulses		13,825,772,979		13,825,772,979		13,224,775,034		-4.35	%
	Total public phone — TELKOM & KSO Division	Pulses		14,461,756,824		14,461,756,824		13,695,414,493		-5.30	%
Lines in Service- Production
	TELKOM Division	Pulses		33,323,580,882		42,780,332,482		48,080,296,731		12.39	%
	KSO Division	Pulses		27,240,531,081		17,783,779,481		12,469,255,027		-29.88	%
Total LIS’s pulse production (TELKOM&KSO Div,)		Pulses		60,564,111,963		60,564,111,963		60,549,551,758		-0.02	%
Pulses per Average Subscriber Line
	TELKOM Division	Pulses/line		6,359		6,489		6,394		-1.48	%
	KSO Division	Pulses/line		6,819		6,711		5,354		-20.21	%
	Pulses per Avrg, Subscr, Line (TELKOM&KSO)	Pulses/line		6,549		6,549		6,167		-5.83	%
Pulses per Average LIS
	TELKOM Division	Pulses/line		5,969		6,130		6,058		-1.18	%
	KSO Division	Pulses/line		6,549		6,411		5,131		-19.97	%
	Pulses per Average LIS (TELKOM&KSO)	Pulses/line		6,205		6,205		5,857		-5.60	%


Fixed-line phone		Unit	2002				2003		Growth (%)

1		2	3a		3b		4		5=(4-3b)/3b

Subscriber Mix — TELKOM Division
	Business	Percent		20.42		19.53		20.45		4.73
	Residential	Percent		79.41		80.26		79.34		(1.14	)
	Social	Percent		0.18		0.21		0.20		(2.96	)
Subscriber Mix — KSO Division
	Business	Percent		15.64		15.45		18.51		19.80
	Residential	Percent		83.95		84.10		81.30		(3.33	)
	Social	Percent		0.41		0.45		0.19		(57.82	)
Subscriber Mix — TELKOM & KSO Division
	Business	Percent		18.45		18.45		20.12		9.05
	Residential	Percent		81.28		81.28		79.68		(1.97	)
	Social	Percent		0.27		0.27		0.20		(26.27	)
Pulses (Local & DLD), Subscriber (TELKOM & KSO)
	Local	Percent		32.37		32.37		31.79		(1.81	)
	DLD	Percent		67.63		67.63		68.21		0.86
Utilization RATE(LIS/IL)
	TELKOM Division	Percent		92.61		92.70		91.32		(1.48	)
	KSO Division	Percent		91.62		90.85		91.12		0.30
	Utilization Rate (TELKOM & KSO )	Percent		92.21		92.21		91.29		(0.99	)
Occupancy Rate (TELKOM & KSO Division)
	TELKOM Division	Percent		87.06		87.52		88.37		0.97
	KSO Division	Percent		85.03		82.80		90.23		8.98
Total Occupancy Rate (TELKOM & KSO Division)		Percent		86.22		86.22		88.69		2.86
Call Completion Rate (TELKOM & KSO Division)
	Local	Percent		75.88		75.88		76.96		1.42
	Domestic Long Distance	Percent		66.87		66.87		68.25		2.06
Employees
	TELKOM Division	Persons		19,282		24,601		25,291		2.80
	KSO Division	Persons		15,466		10,147		7,014		(30.88	)
Employees (TELKOM & KSO Division)		Persons		34,748		34,748		32,305		(7.03	)
Productivity (LIS/Employees)
	TELKOM Division	Lines/Empl		235.18		228.75		269.98		18.02
	KSO Division	Lines/Empl		200.85		198.44		202.58		2.08
	Productivity (TELKOM & KSO Division)	Lines/Empl		219.90		219.90		255.34		16.12
Density (LIS Per 100 Inhabitants)
	TELKOM Division	Percent		5.72		4.31		4.30		(0.37	)
	KSO Division	Percent		2.02		1.96		1.83		(6.41	)
	Density (TELKOM & KSO Division)	Percent		3.27		3.27		3.49		6.53


		Regional
		Division	30-Sep-02		30-Sep-03		Growth (%)

Exchange capacity (lines)
		I		1,231,532		1,292,166		4.92
		II		3,257,210		3,439,229		5.59
		III		879,124		883,450		0.49
		IV		770,289		770,289		0.00
		V		1,589,185		1,739,917		9.48
		VI		394,241		422,106		7.07
		VII		805,970		818,878		1.60

	Total			8,927,551		9,366,035		4.91

Installed lines
		I		1,174,051		1,358,625		15.72
		II		3,030,171		3,275,615		8.10
		III		720,506		775,099		7.58
		IV		725,268		739,075		1.90
		V		1,501,425		1,633,752		8.81
		VI		364,988		433,459		18.76
		VII		770,516		820,224		6.45

	Total			8,286,925		9,035,849		9.04

Subscribers
		I		1,058,648		1,151,991		8.82
		II		2,626,513		2,810,918		7.02
		III		633,282		683,634		7.95
		IV		610,456		632,141		3.55
		V		1,310,821		1,436,680		9.60
		VI		321,974		401,417		24.67
		VII		681,586		731,589		7.34

	Total			7,243,280		7,848,370		8.35

Lines in service
		I		1,092,786		1,196,758		9.51
		II		2,785,747		2,965,751		6.46
		III		665,192		711,143		6.91
		IV		641,110		662,814		3.39
		V		1,413,760		1,538,079		8.79
		VI		335,165		416,214		24.18
		VII		707,301		758,067		7.18

	Total			7,641,061		8,248,826		7.95

LIS pulse production (pulses)
		I		9,456,751,600		9,860,303,412		4.27
		II		20,336,901,160		20,478,490,257		0.70
		III		4,903,137,279		4,865,940,269		-0.76
		IV		6,028,048,440		5,802,647,996		-3.74
		V		9,333,758,690		9,300,601,011		-0.36
		VI		3,652,921,033		3,574,961,783		-2.13
		VII		6,852,593,762		6,666,607,031		-2.71

	Total			60,564,111,963		60,549,551,758		-0.02

Table-7
PT TELEKOMUNIKASI SELULAR (TELKOMSEL)
BALANCE SHEETS
AS OF SEPTEMBER 30, 2002 AND 2003
(In Millions of Rupiah and Thousands of U.S. Dollar)


						2003
			2002
ASSETS			Rp.			Rp.			US$(1)			Growth

CURRENT ASSETS
	Cash and cash equivalents(2)			1,841,948			1,242,725			145,144			-32.5	%
	Acct. receivable — net of allow. for doubtful acct.			322,024			253,404			29,596			-21.3	%
	Accrued income — net of allow. for doubtful acct.			304,745			346,451			40,464			13.7	%
	Inventories — net of allow. for obsolescence			114,778			47,747			5,577			-58.4	%
	Prepaid tax and expenses			119,308			317,479			37,080			166.1	%
	Advances			175,610			1,446			169			-99.2	%
	Others			111,061			59,997			7,007			-46.0	%
	Total Current Assets			2,989,474			2,269,249			265,037			-24.1	%
PROPERTY, PLANT AND EQUIPMENT
	Fixed assets			9,662,231			15,249,228			1,781,036			57.8	%
	Work in progress			397,180			236,557			27,629			-40.4	%
	Accumulated depreciation			(2,070,933	)		(3,500,721	)		(408,867	)		69.0	%
	PPE — net book value			7,988,478			11,985,064			1,399,797			50.0	%
OTHER ASSETS				83,964			44,308			5,175			-47.2	%

TOTAL ASSETS				11,061,916			14,298,621			1,670,009			29.3	%

CURRENT LIABILITIES
	Short-term loan			500,000			—			—
	Accounts payable			475,244			305,278			35,655			-35.8	%
	Accrued liabilities			1,168,882			1,454,891			169,924			24.5	%
	Taxes payable			336,266			536,701			62,684			59.6	%
	Unearned income			353,443			462,610			54,031			30.9	%
	Dividend payable			408,802			—			—
	Curr. maturities of obligation under cap. lease			854			—			—
	Other current liabilities			—			215,679			25,190
	Total Current Liabilities			3,243,491			2,975,159			347,484			-8.3	%
LONG-TERM LIABILITIES
	Long-term guaranteed notes payable — net			1,348,577			1,255,555			146,643			-6.9	%
	ECA loan			—			432,440			50,507
	Oblig. under cap.lease — net of current maturities			368			—			—
	Total Long-term Liabilities			1,348,945			1,687,995			197,150			25.1	%
DEFERRED TAX LIABILITIES — NET				32,453			505,612			59,053			1,458.0	%
EQUITY
	Capital stock — Rp 1,000,000 par value
		Authorized - 650,000 shares
		Issued and fully paid - 182,570 shares		182,570			182,570			21,323			0.0	%
	Additional paid-in capital			1,504,854			1,504,854			175,760			0.0	%
	Retained earnings			4,749,603			7,442,431			869,240			56.7	%
	Total Equity			6,437,027			9,129,855			1,066,323			41.8	%

TOTAL LIAB. & STOCKHOLDERS’ EQUITY				11,061,916			14,298,621			1,670,009			29.3	%

Table-8
PT TELEKOMUNIKASI SELULAR (TELKOMSEL)
FOR THE NINE MONTHS ENDED SEPTEMBER 30 2002 AND 2003
(In Millions of Rupiah and Thousands of U.S. Dollar)


					2003
		2002
		Rp.			Rp.			US$ (1)			Growth

OPERATING REVENUES
	Post-paid (kartuHALO)		2,285,912			2,554,297			298,329			11.7	%
	Prepaid (simPATI)		2,808,900			5,053,674			590,245			79.9	%
	International roaming		320,268			287,658			33,597			-10.2	%
	Interconnection revenues (outpayment) — net		(53,132	)		126,007			14,717			337.2	%
	Total Operating Revenues		5,361,948			8,021,636			936,888			49.6	%

OPERATING EXPENSES
	Personnel		194,729			264,849			30,933			36.0	%
	Operation & maintenance		877,805			1,334,443			155,856			52.0	%
	General & administrative		231,158			279,838			32,684			21.1	%
	Marketing & selling		86,162			126,004			14,717			46.2	%
	Rev. dependent & other cost of services		314,214			403,794			47,161			28.5	%
	Depreciation and amortization		677,789			1,125,062			131,402			66.0	%
	Total Operating Expenses		2,381,857			3,533,990			412,753			48.4	%

EBIT (EARNINGS BEFORE INTEREST & TAXES)			2,980,091			4,487,646			524,135			50.6	%

OTHER INCOME/(CHARGES)
	Interest income/(expenses)		(57,129	)		(75,119	)		(8,774	)		31.5	%
	Foreign exchange gain/(loss)		(14,367	)		2,066			241			-114.4	%
	Others — net		(18,877	)		(13,818	)		(1,614	)		-26.8	%
	Other income/(charges) — net		(90,373	)		(86,871	)		(10,146	)		-3.9	%

INCOME BEFORE TAX			2,889,718			4,400,775			513,989			52.3	%
PROVISION FOR INCOME TAX			854,605			1,345,139			157,106			57.4	%
NET INCOME			2,035,113			3,055,636			356,883			50.1	%

EBITDA			3,657,880			5,612,708			655,537			53.4	%
EBITDA MARGIN			68	%		70	%		70	%		1.8	%

Table-9
PT TELEKOMUNIKASI SELULAR (TELKOMSEL)
Operational Indicators as of September 30, 2002 & 2003


		Unit	2002			2003			Growth (%)

1		2	3			4			5

CUSTOMER BASE
Net addition
	Postpaid (KartuHALO)	Subscriber		72,304			66,989			(7.35	)
	Prepaid (SimPATI)	Subscriber		1,672,107			2,715,110			62.38
	Total	Subscriber		1,744,411			2,782,099			59.49
Customer base
	Postpaid	Subscriber		937,515			989,994			5.60
	Prepaid	Subscriber		4,058,928			7,802,877			92.24
	Total	Subscriber		4,996,443			8,792,871			75.98
ARPU/month
	Postpaid	Rp (thousand)		297			312			5.05
	Prepaid	Rp (thousand)		104			93			(10.58	)
	Blended	Rp (thousand)		148			123			(16.89	)
ARPU Non voice/SMS/month
	Postpaid	Rp (thousand)		20			28			40.00
	Prepaid	Rp (thousand)		17			22			29.41
	Blended	Rp (thousand)		18			23			27.78

NETWORK DATA
BTS/TRX
	Base Transceiver Station (BTS) on air	Unit		3,039			4,594			51.17
	Transit Receive Exchange (TRX)RX on air	Unit		25,116			37,045			47.50
Capacity
	Home Location Register (HLR)	Subscriber		7,605			14,565			91.52
	Visitor Location Register (VLR)	Subscriber		5,455			10,987			101.41
Quality of service
	Call success ratio	%		91.48	%		95.34	%		4.22
	Call completion ratio	%		98.41	%		99.20	%		0.80

Employee
	Total Employees	Persons		2,516			2,809			11.65
	Efficiency (subs per employee)	Subscr/employee		1,986			3,130			57.60


		Perusahaan Perseroan (Persero) PT TELEKOMUNIKASI INDONESIA
		(Registrant)


Date	November 6, 2003	By	/s/ Rochiman Sukarno (Signature)

			Rochiman Sukarno Head of Investor Relation Unit


*)Column 3a	Column 3b	Column 4
TELKOM Division includes:	TELKOM Division includes:	TELKOM Division includes:

Regional Division-II Jakarta	Regional Division-I Sumatera	Regional Division-I Sumatera
Regional Division-V East Java	Regional Division-II Jakarta	Regional Division-II Jakarta
Regional Division-VI Kalimantan	Regional Division-V East Java	Regional Division-III West Java
	Regional Division-VI Kalimantan	Regional Division-V East Java
		Regional Division-VI Kalimantan


Column 3a	Column 3b	Column 4
TELKOM Division includes:	TELKOM Division includes:	TELKOM Division includes:

Regional Division-II Jakarta	Regional Division-I Sumatera	Regional Division-I Sumatera
Regional Division-V East Java	Regional Division-II Jakarta	Regional Division-II Jakarta
Regional Division-VI Kalimantan	Regional Division-V East Java	Regional Division-III West Java
	Regional Division-VI Kalimantan	Regional Division-V East Java
		Regional Division-VI Kalimantan


*)
Column 3a	Column 3b	Column 4
TELKOM Division includes:	TELKOM Division includes:	TELKOM Division includes:

Regional Division-II Jakarta	Regional Division-I Sumatera	Regional Division-I Sumatera
Regional Division-V East Java	Regional Division-II Jakarta	Regional Division-II Jakarta
Regional Division-VI Kalimantan	Regional Division-V East Java	Regional Division-III West Java
	Regional Division-VI Kalimantan	Regional Division-V East Java
		Regional Division-VI Kalimantan


(million of Rupiah)		KSO-I		KSO-III		KSO-IV		KSO-VI		KSO-VII		TOTAL

Minimum TELKOM			388,526		311,623		303,210		107,547		189,907		1,300,813
Distributable TELKOM			266,364		104,833		138,890		109,469		221,913		841,469

	Total		654,890		416,455		442,100		217,016		411,820		2,142,281

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For the month of		November		, 2003


Form 20-F þ		Form 40-F o


Yes o		No þ