UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

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

For the month of November, 2004

Perusahaan Perseroan (Persero)
PT TELEKOMUNIKASI INDONESIA

(Translation of registrant’s name into English)

Jalan Japati No. 1 Bandung-40133 INDONESIA

(Address of principal executive office)

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

Form 20-F  þ Form 40-F  o

[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

Yes  o No  þ

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

TABLE OF CONTENTS

SIGNATURES

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.

	Perusahaan Perseroan (Persero) PT TELEKOMUNIKASI INDONESIA (Registrant)
Date: November 3, 2004	By:	/s/ Rochiman Sukarno(Signature)
		Rochiman Sukarno Head of Investor Relation Unit

THE THIRD QUARTER OF 2004 RESULTS
(Unaudited)
Date : November 3, 2004
No: C.TEL755/PR110/UHI/2004

This document contains certain financial conditions and results of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements, by their nature, involve risk and uncertainty that could cause actual results and development to differ materially from those expressed or implied in these statements. TELKOM do not guarantee that any action, which should have been taken in reliance on this document will bring specific results as expected.

Tickers
NYSE: TLK LSE: TKID JSX: TLKM
Divisions
Telkom Regions: I, II, III, IV,V, VI
KSO Regions: VII
Shares in issues
20,159,999,280 shares
Major Shareholders
Govt. of Indonesia: 51.19%
Public: 48.81%
Conversion Rate (US$ 1.00)
2003 =Rp.8,562.00 (Oct’ 28, 2003)
2004 =Rp.9,160.00 (Sept 30, 2004)

FINANCIAL HIGHLIGHTS (consolidated)

In billions Rp.

Key Indicators	3Q03*		3Q04**		Growth (%)
	(restated)
Operating Revenues		19,617		25,019		27.5
Operating Expenses		10,789		14,595		35.3
Operating Income		8,828		10,425		18.1
EBITDA (Rp)		12,664		15,456		22.0
EBITDA Margin (%)		64.56		61.77		(2.8	)
Net Income		4,412		5,024		13.9
Net Income per share (Rp)		218.83		249.22		13.9

*) The consolidated subsidiaries 3Q03: Telkomsel (65%), Pramindo Ikat Nusantara (100%), Ariawest (100%), Dayamitra (90.32%), Metra (100%), Infomedia (51%), Indonusa (88.08%), Napsindo (60%), Pro Infokom (51%), Graha Sarana Duta (99.99%)

**) The consolidated subsidiaries 3Q04: Telkomsel (65%), Pramindo Ikat Nusantara (99.99%), Ariawest (99.99%), Dayamitra (90.32%), Metra (99.99%), Infomedia (51%), Indonusa (90.39%), Napsindo (60%), Pro Infokom (51%), Graha Sarana Duta (99.99%)

HIGHLIGHTS

• TELKOMFlexi has reached 1 million subscribers, and E-voucher service for Flexi Trendy has been developed by TELKOM and several banks.

• TELKOM has been granted a principle license for 3 G from the Government of Indonesia through the Ministry of Communication.

• 1,186 employees have participated in early retirement program since February 2004.

• During third quarter of 2004, TIC 007 was grabbing a high market share and has generated revenue in the amount of Rp.162 billion.

• Average daily trading volume in Jakarta Stock Exchange during the month after stock split increased by 53% compared to the month before stock split from 15.8 million shares to 24.2 million shares.

• Telkomsel still maintained its 71% EBITDA margin. Furthermore, Telkomsel’s subscriber base for the nine months of 2004 increased 4.1 million to 13.7 million or 51% of the cellular market, whereas its revenues were around 60%.

• Telkomsel has launched new features such as “KARTU As always on”, Ring back tone, and pulse transfer from postpaid to prepaid.

Investor Relation Dept.
PT. TELKOM
Grha Citra Caraka
Jl. Gatot Subroto Kav 52, 5TH floor
Jakarta 12710
Phone: 62 21 5215109
Fax: 62 21 5220500
Email: investor@telkom.co.id
Website: http//www.telkom-indonesia.com

1

PT. TELEKOMUNIKASI INDONESIA, Tbk.
ANNOUNCEMENT FOR THE THIRD QUARTER 2004 RESULTS (Unaudited)

Jakarta, November 3, 2004 - PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), has announced its un-audited consolidated financial statements and operational results for the third quarter 2004. All figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP).

FINANCIAL RESULTS

Operating Revenues

Total consolidated Operating Revenues grew by 27.5%. The main contributors to the increase of Operating Revenues were generated by the growth of Revenues under Revenues Sharing Arrangement (321.1%), Data and Internet Revenues (57.0%), and Interconnection Revenues (39.9%).

The contributions to such increase can be described in details as follows:

a.	Revenue Sharing Arrangement (RSA) amounted to Rp.788.2 billion or increased by 321.1%. This significant increase was due to the new scheme arrangement between TELKOM and MGTI .
b.	Data and Internet revenues amounted to Rp.3,359.1 billion or increased by 57.0% mainly contributed by a significant increase in SMS production from Telkomsel subscribers, increased usage of Telkomnet Instan connectivity and increased usage of TELKOM’s VoIP services (TELKOMSave and TELKOMGlobal). SMS revenue increased in the amount of Rp.992.0 billion to Rp.2,481.7 billion or by 66.6%, VoIP revenue increased in the amount of Rp.11.3 billion to Rp.269.4 billion or by 4.4%, and multimedia revenue increased in the amount of Rp.216.0 billion to Rp.608.0 billion or by 55.1%.
c.	Interconnection revenues amounted to Rp.4,366.2 billion or increased by 39.9%, primarily contributed by the increase in the revenue from cellular phone traffic in the amount of Rp.3,855.2 billion and an increase by 48.7% in cellular interconnection revenue, and from international calls which increased by 43.0%.
d.	Network revenues amounted to Rp.468.5 billion or increased by 44.7%, largely contributed by the increase in leased line revenues which amounted to Rp.303.9 billion.
e.	Cellular revenues amounted to Rp.7,690.0 billion, or increased by 25.6%, primarily contributed by the 45% increase in Telkomsel’s prepaid revenue, as well as the 56% increase in the total number of Telkomsel subscribers.
f.	Fixed phone revenues amounted to Rp.7,654.3 billion or increased by 18.2%, including revenues from TELKOMFlexi and consolidation of Division Regional-III and IV. The increase was mainly generated from the 38.2% increase in local call revenues and the 47.8% increase in monthly subscription charges.

Operating Expenses

The total consolidated Operating Expenses increased by 35.3%, which was contributed by the increase in Marketing Expenses (85.9%), Personnel Expenses (35.5%), Operation & Maintenance Expenses (34.5%), Depreciation Expenses (34.3%), as well as General and Administrative Expenses (26.1%).

The contributions to the increase can be described in details as follows:

a.	Marketing Expenses amounted to Rp.639.9 million or increased by 85.9%. The main contributors to this increase were TELKOM’s marketing campaign for its new services, primarily for TELKOMFlexi and TIC-007. In addition, customer loyalty program and sales support also led to a 105% increase in Telkomsel’s marketing expense of Rp.127.9 billion.
b.	Personnel Expenses amounted to Rp.4,320.8 billion or increased by 35.5%, mainly caused by the change in the discount rate assumption of actuary calculation from 13% in 2003 to 11% in 2004
c.	Operation, Maintenance & Telecommunications Services Expenses amounted to Rp.3,387.1 billion or increased by 34.5%. The increase was mainly contributed by the increase in the cost of phone cards amounted to Rp.275.2 billion and an increase in the concession fees & radio frequency usage charges in line with the increase of BTS and TRX TELKOM and Telkomsel.
d.	Depreciation Expenses amounted to Rp.4,469.5 billion or increased by 34.3%, mainly due to accelerated depreciation in Telkomsel and the consolidation impact of Regional Division III and IV.
e.	General and Administrative Expenses amounted to Rp.1,777.5 billion or increased by 26.1%. The increase mainly resulted from amortization of intangible assets and the consolidation impact of Regional Division III and IV.

Net Income

For the first nine months of 2004, the Company reported an increase in Net Income by 13.9% to Rp.5,024.3 billion. This was largely due to a strong revenues’ growth from Telkom and Telkomsel.

CAPITAL EXPENDITURE

TELKOM (as single entity)

During the third quarter of year 2004, the company has spent Rp.2,088.0 billion for CAPEX (payment based), which consist of:

a.	Rp.720,5 billion for Access development (CDMA Rp.544.9 billion, Non CDMA Rp.175.6 billion).
b.	Rp.802.1 billion for Transport development (Non CDMA).
c.	Rp.420.0 billion for Services Node (CDMA Rp.292.0 billion, Non CDMA Rp.127.9 billion).
d.	Rp.145.4 billion for Support (CDMA Rp.30.1 billion, Non CDMA Rp.115.1 billion).

Telkomsel

From January to September 2004, the Company added Rp.3,622 billion (USD 405 million) to fixed-assets for network infrastructures and other investments. Cash spending on capex for the nine months of 2004 was Rp.3,642 billion (USD 408 million). There were 942 new BTS’s and 7,846 TRXs installed and 8.3 million subscribers capacity added to the switching capacity (HLR).

2

Overall network capacity as of end of September 2004 was approximately 15.4 million.

CONSOLIDATED DEBT

As of September 30, 2004, breakdown of debt portfolio (short-term and long-term) in original currencies and Rupiah equivalents was as follows:

Currencies	Years		Original Currency		Rp Equivalent		Portion
			(millions)
			(Except IDR in billions)		(billions)
IDR/ Rupiah		2003		4,520.93		4,520.93		28.2	%
		2004		4,280.28		4,280.28		30.5	%
USD Dollar		2003		1,141.22		9,594.78		59.8	%
		2004		853.12		7,471.55		53.3	%
Yen		2003		17,616.97		1,343.67		8.4	%
		2004		17,241.96		1,427.10		10.2	%
Euro		2003		60.15		590.42		3.7	%
		2004		74.20		838.68		6.0	%
Total		2003				16,049.80		100.0	%
		2004				14,017.61		100.0	%

TELKOM’s DEBTs (as single entity)

As of September 30, 2004, breakdown of un-consolidated debt portfolio (short-term and long-term) in original currencies and Rupiah equivalents are as follows:

Currencies	Years		Original Currency		Rp Equivalent		Portion
			(millions)
			(Except IDR in billions)		(billions)
IDR/ Rupiah		2003		4,457.71		4,457.71		32.5	%
		2004		4,206.94		4,206.94		34.7	%
USD Dollar		2003		916.21		7,708.71		56.3	%
		2004		688.28		6,311.48		52.1	%
Yen		2003		17,616.97		1,343.67		9.8	%
		2004		17,241.96		1,427.10		11.8	%
Euro		2003		19.76		193.99		1.4	%
		2004		15.51		175.37		1.4	%
Total		2003				13,704.08		100.0	%
		2004				12,120.89		100.0	%

TELKOM hedges its foreign currencies exposures through time deposit placement, mainly in US Dollar. As of September 30, 2004, the Company’s deposit covered approximately 5.5% of foreign debts from September 1, 2004 to August 31, 2005.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of September 30, 2004 TELKOM, including all KSO Units, recorded 9.59 million fixed lines in service, consisting of 8.51 million wire-lines and 1.08 million fixed-wireless.

Net additional lines in service during the first nine month of 2004 reached the amount of 1,112,641 lines, which was higher than the figure for the corresponding period in 2003, amounting to 498,791 lines.

As of September 30, 2004, the subscriber-mix consists of business subscribers totaling 2,619,270 line units (28.56%), residential totaling 6,536,956 line units (71.29%) and social subscribers totaling 13,519 line units (0.15%).

Fixed-Wireless CDMA Services

As of September 30, 2004, TELKOMFlexi contributed to TELKOM revenues in the amount of Rp.598 billion which was generated from voice, SMS, and interconnection.

TELKOMFlexi performance as of September 30, 2004 are as follows:

	Unit		3Q03		3Q04		Growth
Customer base
Net Additions
Classy/Postpaid	Subs			119,646		378,265		216	%
Trendy/Prepaid *)	Subs					443,965		—
Total	Subs			119,646		822,230		587	%
Line in service
Classy/Postpaid	Subs			119,646		614,601		414	%
Trendy/Prepaid	Subs					468,344		—
Total	Subs			119,646		1,082,945		805	%
Sales
Classy/Postpaid	Subs			118,789		489,347		312	%
Trendy/Prepaid	Subs			55,752		443,965		696	%
Total	Subs			174,541		933,312		435	%
ARPU (9 months average)
Classy/Postpaid		’000		171		158		-8	%
Trendy/Prepaid		’000		n.a		13
Blended		’000		171		103		-40	%
SMS
# sms/sub/month postpaid	sms			—		15
# sms/sub/month prepaid	sms			—		8
NETWORK
1. BTS	unit			191		848		344	%
CAPACITY	LU			387,570		1,747,844		351	%
2. MSC Capacity	LU			358,100		1,469,265		310	%
Number of city in service	city			16		115		619	%

Notes: ARPU(3Q04) :Voice:=Rp.95,775, Non voice= Rp.7,394

TELKOM International Call 007 (TIC-007)

As of September 30, 2004, the performance of TELKOM’s TIC-007 as follows:

Description	Unit	Incoming		Outgoing
Traffic	Mn. minutes		142.6		33.0
Revenue	Rp. bn		85.3		168.3

Cellular Services

As of September 30, 2004, the number of active cellular subscribers in TELKOM’s associated companies were 13,735,220 subscribers, with breakdown of each operator are as follows:

Operator					Growth
(TELKOM’s ownership)	3Q/03		3Q/04		(%)
TELKOMSEL (65%)		8,792,871		13,691,948		56
MANDARA (6.40%)		5,069		6,797		34
PSN (34.85%)		n.a		36,475		—
Total		8,797,940		13,735,220		56

3

Telkomsel is the largest mobile communication company in Indonesia with estimated market share of subscribers of over 50% at the end of September 2004.

Data and Internet Services

As of September 30, 2004, the total access to TELKOMNet Instan connectivity amounted to 1,738.3 million minutes or increased by 22.9% from the corresponding period in 2003. Meanwhile, the use of TELKOMSave and TELKOMGlobal access through VoIP respectively amounted 7.8 million minutes and 46.6 million minutes or increased by 48.3% and 6.0%, respectively. The total of Telkomsel’s SMS production increased by 60.1% to 7,650 million SMS.

Broadband Services

Broadband services under the name of SPEEDY was launched on July 29, 2004. As of September 30, 2004, the capacity reached 11,832 lines while sales reached 54% of the capacity.

HUMAN RESOURCES

As of September 30, 2004, the total number of TELKOM’s (as a single entity) employees was 29,397 persons consisting of 25,797 persons in TELKOM Regions and 3,600 persons in KSO Regions. Productivity per employee as measured by the number of fixed lines in service per employee as of September 30, 2004 was 326 while the same as of September 30, 2003 was 255.

For the nine month of 2004, 1,186 employees have participated in early retirement program with expense amounted to Rp.371 billion.

RECENT DEVELOPMENTS

Stock Split

The Company has implemented a stock split, in which each Series B common share of the Company, in a par value of Rp.500, was split into two Series B common shares, in a par value of Rp.250, and each Series A share, in a par value of Rp.500, was split into one Series A share and one Series B common share, respectively in a par value of Rp.250. The Company has also put into effect a change of ratio of its American Depositary Shares (“ADSs”), from one ADS representing 20 Series B common shares, in a par value of Rp.500 per share, to one ADS representing 40 Series B common shares, in a par value of Rp.250 per share. The ADR ratio change was effective as of October 1, 2004, following the split of the Company’s shares and the distribution of the new Series B common shares, in a par value of Rp.250 per share, into the central custodian accounts of the shareholders of record.

Corporate Secretary,

ADEK JULIANWAR

4

Table 1
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, Tbk AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
SEPTEMBER 30, 2003 AND 2004
(Figures in Tables are presented in Millions of Rupiah and Thousands of United States Dollars)

	Consolidated						Unconsol.
	2003		2004				2004
	(Restated)
	Rp		Rp		US $		Rp
ASSETS
CURRENT ASSETS
Cash and cash equivalents		4,860,401		6,112,466		667,300		2,340,383
Short-term investments — net		62,119		107,799		11,768		96,799
Sub total		4,922,520		6,220,265		679,068		2,437,182
Trade accounts receivables
Related parties — net of allowance for doubtful accounts of Rp 135,689 million in 2003 and Rp 143,591 million in 2004		765,094		690,848		75,420		729,712
Third parties — net of allowance for doubtful accounts of Rp 413,959 million in 2003 and Rp 562,013 million in 2004		2,583,369		3,090,402		337,380		2,424,897
Sub total		3,348,463		3,781,250		412,800		3,154,609
Other account receivables — net of allowance for doubtful accounts Rp 51.649 million in 2003 and Rp 35,442 million in 2004		377,661		291,523		31,826		2,690,747
Inventories — net of allowance for obsolescence of Rp 51.346 million in 2003 and Rp 47,102 million in 2004		185,596		171,746		18,750		83,621
Prepaid expenses		727,972		790,178		86,264		426,736
		—		—		—		—
Prepaid taxes		38,370		64,845		7,079		38,370
Other current Assets		38,663		44,412		4,848		42,549
TOTAL CURRENT ASSETS		9,639,245		11,364,219		1,240,635		8,873,814
NON CURRENT ASSETS
Long-term investments — net		69,741		72,743		7,941		9,809,824
Property, plant and equipment — net of accumulated depreciation of Rp 22,220,275 million in 2003 and Rp 27,137,984 million in 2004		32,511,049		36,598,850		3,995,508		18,537,852
Property, plant and equipment under revenue sharing arrangements — net of accumulated depreciation of Rp 878,764 million in 2003 and Rp 1,038,777 million in 2004		315,427		2,788,985		304,474		2,788,985
Advances and other non current assets		151,573		422,715		46,148		370,145
Intangible assets		5,365,697		4,582,456		500,268		4,582,456
Advances payment for investment in share of stock		79,768		65,458		7,146		65,458
Escrow accounts		447,838		215,001		23,472		208,830
Property not used in operations		12,354		4,987		545		4,987
TOTAL NON CURRENT ASSETS		38,953,447		44,751,195		4,885,502		36,368,539
TOTAL ASSETS		48,592,692		56,115,414		6,126,137		45,242,353

5

Table 1 (continued)
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, Tbk AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
SEPTEMBER 30, 2003 AND 2004
(Figures in Tables are presented in Millions of Rupiah and Thousands of United States Dollars)

	Consolidated									Unconsol.
	2003			2004						2004
	(Restated)
	Rp			Rp			US $			Rp
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade accounts payable
Related parties		658,627			827,602			90,350			905,522
Third parties		2,470,580			3,331,782			363,732			1,957,025
Other accounts payable		45,293			39,734			4,338			37,864
Taxes payable		1,778,106			1,490,932			162,766			930,507
Dividend payable		69,418			1,153,412			125,918			812,513
Accrued expenses		1,679,422			1,652,196			180,371			949,994
Unearned income		660,464			928,724			101,389			99,081
Advances from customers and suppliers		262,695			328,392			35,851			305,311
Short term bank loan		37,509			397,537			43,399			356,684
Current maturities of long-term liabilities		3,580,901			2,206,349			240,868			1,899,797
TOTAL CURRENT LIABILITIES		11,243,015			12,356,660			1,348,982			8,254,298
NON CURRENT LIABILITIES
Deferred tax liabilities — net		3,410,273			3,504,159			382,550			2,677,289
Unearned income under revenue sharing arrangements		99,742			2,639,198			288,122			2,639,198
Unearned initial investor payment under joint operation scheme		28,876			28,117			3,070			95,933
Provision for Long Service Award		477,519			533,226			58,212			533,226
Provision for Liabilities post retirement benefit cost		1,948,136			1,878,085			205,031			1,878,085
Long-term debts — net of current maturities
Two-step loans — related parties		7,005,307			6,505,888			710,250			6,505,888
Suppliers’ credit loans		64,804			—			—			—
Bridging loan		25,726			—			—			—
Project cost payable		—			—			—			—
Bonds		2,235,511			1,711,807			186,878			985,243
Bank loans		1,790,838			2,579,220			281,574			1,765,613
Other long-term debts		9,150			9,150			999			—
Liabilities for acquisition of a subsidiaries		1,300,049			607,668			66,339			607,668
Sub total long-term debts		12,431,385			11,413,733			1,246,041			9,864,411
TOTAL NONCURRENT LIABILITIES		18,395,931			19,996,518			2,183,025			17,688,142
MINORITY INTEREST IN NET ASSETS OF SUBSIDIARY		3,291,894			4,462,324			487,153			—
STOCKHOLDERS’ EQUITY
Capital stock — Rp 250 par value per series-A Dwiwarna share and series-B shares. Authorized — one Series A Dwiwarna share and 79.999.999.999 B shares Issued and fully paid — one Series A Dwiwarna share and 20.159.999.279 Series B shares		5,040,000			5,040,000			550,218			5,040,000
Additional paid-in capital		1,073,333			1,073,333			117,176			1,073,333
Difference in value of restructuring transactions between entities under common control		(7,288,271	)		(7,288,271	)		(795,663	)		(7,288,271	)
Difference due to change of equity in associated companies		424,020			385,595			42,096			385,595
Unrealized loss on investment in securities		—			490			53			490
Translation adjustment		231,298			230,044			25,114			230,045
Retained earning:
Appropriated		1,559,068			1,680,813			183,495			1,680,813
Un-appropriated		14,622,404			18,177,908			1,984,488			18,177,908
TOTAL STOCKHOLDERS’ EQUITY		15,661,852			19,299,912			2,106,977			19,299,912
TOTAL LIABILITIES and STOCKHOLDERS’ EQUITY		48,592,692			56,115,414			6,126,137			45,242,353

6

Table 2
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2003 AND 2004
(In Millions of Rupiah and Thousands of U.S. Dollars, except per Share and per ADS Data)

	Consolidated									Unconsol.
	2003			2004						2004
	Rp			Rp			US $			Rp
OPERATING REVENUE
Telephone
Fixed phone		6,476,583			7,654,264			835,618			7,108,102
Cellular		6,121,293			7,689,968			839,516			—
Interconnection revenues		3,120,941			4,366,230			476,663			3,659,625
Revenue under joint operation scheme		1,086,898			443,407			48,407			(254,713	)
Data and internet		2,139,814			3,359,120			366,716			898,368
Network		323,848			468,479			51,144			863,517
Revenues under revenue sharing arrangement		187,163			788,178			86,046			788,178
Other telecommunications services		160,139			249,810			27,272			1,784
Total Operating Revenue		19,616,679			25,019,456			2,731,382			13,064,861
OPERATING EXPENSES
Personnel		3,189,029			4,320,848			471,708			3,765,935
Depreciation		3,327,180			4,469,538			487,941			2,276,680
Operation, maintenance and telecommunications services		2,518,459			3,387,144			369,776			1,565,281
General and administrative		1,409,783			1,777,552			194,056			1,404,989
Marketing		344,191			639,855			69,853			296,670
Total Operating Expenses		10,788,642			14,594,937			1,593,334			9,309,555
OPERATING INCOME		8,828,037			10,424,519			1,138,048			3,755,306
OTHER INCOME (CHARGES)
Interest income		255,531			219,280			23,939			136,066
Interest expense		(948,523	)		(937,779	)		(102,378	)		(742,504	)
Gain (loss) on foreign exchange — net		165,375			(577,744	)		(63,072	)		(414,729	)
Equity in net income (loss) of associated companies		(28	)		2,283			249			3,084,602
Gain on sales of equity in Telkomsel		—			—			—			—
Others — net		(1,895	)		347,541			37,941			311,850
Total Other Income (Charges)		(529,540	)		(946,419	)		(103,321	)		2,375,285
INCOME BEFORE TAX		8,298,497			9,478,100			1,034,727			6,130,591
TAX EXPENSE		(2,902,194	)		(3,014,519	)		(329,096	)		(1,106,245	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		5,396,303			6,463,581			705,631			5,024,346
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		(984,731	)		(1,439,235	)		(157,122	)		—
NET INCOME		4,411,572			5,024,346			548,509			5,024,346
NET INCOME PER SHARE		218.83			249.22			0.03			249.22
NET INCOME PER ADS (40 SERIES-B SHARES PER ADS)		8,753.12			9,968.94			1.06			9,968.94

7

Table 3
Breakdown of the Statement of Income (Unaudited)
For the Nine Months Period Ended September 30, 2003 and 2004

	2003		2004		Growth
	(Rp. Million)		(Rp. Million)		(%)
1	2		3		4=(3-2)/2
OPERATING REVENUE
Fixed Phone (wireline + wireless)
Local		1,719,619		2,377,088		38.23
Long distance		3,044,885		2,927,027		(3.87	)
Monthly subscription charges		1,402,234		2,072,775		47.82
Installation charges		149,069		158,257		6.16
Phone card — net		23,452		15,976		(31.88	)
Others		137,324		103,140		(24.89	)
Total Fixed Phone Revenues		6,476,583		7,654,264		18.18
Cellular		6,121,293		7,689,968		25.63
Interconnection
International calls		291,962		417,582		43.03
Cellular		2,591,830		3,855,206		48.74
Others		237,149		93,442		(60.60	)
Total Interconnection Revenues		3,120,941		4,366,230		39.90
Revenue Under Joint Operation Scheme (JOS)
Minimum TELKOM Revenue (MTR)		735,490		230,754		(68.63	)
Distributable TELKOM Revenue (DTR)		350,839		210,987		(39.86	)
Amortization of Initial Investor Payments		569		1,666		192.63
Total Revenue under JOS		1,086,898		443,407		(59.20	)
Data and Internet
SMS		1,489,708		2,481,751		66.59
VoIP		258,126		269,397		4.37
Multimedia:
Telkomnet Instan		332,476		507,901		52.76
Other Multimedia (ISDN etc.)		59,504		100,071		68.18
Total Data and Internet Revenues		2,139,814		3,359,120		56.98
Network
Leased lines		133,479		303,923		127.69
Satellite transponder		190,370		164,556		(13.56	)
Total Network Revenues		323,848		468,479		44.66
Revenues under Revenue Sharing Arrangement		187,163		788,178		321.12
Other Telecommunication Services (OTS)
Directory assistance		151,222		242,055		60.07
Others		8,917		7,755		(13.03	)
Total OTS Revenues		160,139		249,810		56.00
TOTAL OPERATING REVENUES		19,616,679		25,019,456		27.54
OPERATING EXPENSES
Personnel		3,189,029		4,320,848		35.49
Depreciation		3,327,180		4,469,538		34.33
Operation, maintenance and telecommunications services
Operation and maintenance		1,232,120		1,617,206		31.25
Cost of phone cards		123,568		275,229		122.73
Licence (Concession fees & radio frequency usage charges)		551,790		767,905		39.17
Electricity, gas and water		218,105		296,046		35.74
Insurance and Others		392,876		430,758		9.64
Total O & M		2,518,459		3,387,144		34.49
General and administrative
Provision for doubtful account and inventory obsolescence		198,989		285,588		43.52
Training, education and recruitment		101,662		154,242		51.72
Research, development and consultant		110,805		112,195		1.25
Collection		199,996		250,521		25.26
Amortization of Intangible assets		509,012		561,594		10.33
Others		289,319		413,412		42.89
Total G & A		1,409,783		1,777,552		26.09
Marketing		344,191		639,855		85.90
TOTAL OPERATING EXPENSES		10,788,642		14,594,937		35.28
OPERATING INCOME		8,828,037		10,424,519		18.08

8

Table 3 (continued)
Breakdown of the Statement of Income (Unaudited)
For the Nine Months Period Ended September 30, 2003 and 2004

	2003			2004			Growth
	(Rp. Million)			(Rp. Million)			(%)
1	2			3			4=(3-2)/2
OPERATING INCOME		8,828,037			10,424,519			18.08
OTHER INCOME (CHARGE)
Interest income		255,531			219,280			(14.19	)
Interest expense		(948,523	)		(937,779	)		(1.13	)
Gain (loss) on foreign exchange — net		165,375			(577,744	)		(449.35	)
Equity in net income (loss) of associated companies		(28	)		2,283			82.54
Income from supporting activities		148,758			131,320			(11.72	)
Others		(150,653	)		216,221			243.52
Total Other Income (Charge)		(529,540	)		(946,419	)		78.72
INCOME BEFORE TAX		8,298,497			9,478,100			14.21
TAX EXPENSE		(2,902,194	)		(3,014,519	)		3.87
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		5,396,303			6,463,581			19.78
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		(984,731	)		(1,439,235	)		46.16
NET INCOME		4,411,572			5,024,346			13.89
NET INCOME PER SHARE (FULL AMOUNT)		218.83			249.22			13.89
NET INCOME PER ADS (40 SERIES B SHARE PER ADS) (FULL AMOUNT)		8,753.12			9,968.94			13.89

9

Table 4
PERUSAHAAN PERSEROAN (PERSERO)
P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2003 AND 2004
(Figures in tables are presented in millions of Rupiah and thousands of United States)

	2003
	(Restated)			2004
	Rp			Rp			US$
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone and interconnection — net
Fixed lines		7,248,845			8,900,742			971,697
Cellular		7,296,836			8,688,496			948,526
Joint operation scheme		801,912			522,231			57,012
Interconnection — net		2,536,624			2,605,403			284,433
Other services		1,362,960			2,046,857			223,456
Total cash receipts from operating revenues		19,247,177			22,763,729			2,485,124
Cash payments for operating expenses		(6,887,371	)		(9,192,774	)		(1,003,578	)
Cash generated from operations		12,359,806			13,570,955			1,481,546
Interest received		258,417			226,053			24,678
Income tax payments		(2,861,768	)		(2,611,147	)		(285,060	)
Interest paid		(755,010	)		(900,716	)		(98,331	)
Advances from customers		142,295			17,380			1,897
Net Cash Provided by Operating Activities		9,143,740			10,302,525			1,124,730
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investments and maturity of time deposits		1,703,511			349,096			38,111
Proceeds from sale of property, plant and equipment		47,832			48,699			5,317
Purchase of marketable securities and placements in time deposits		(678,202	)		(441,900	)		(48,242	)
Acquisition of property, plant and equipment		(4,799,351	)		(4,266,626	)		(465,789	)
Decrease (Increase) in advances and others		288,938			7,368			804
Payments of advances for investments in shares of stock		(31,659	)		—			—
Cash dividend receipt		—			—			—
Acquisition of subsidiaries		(2,448,478	)		—			—
Net Cash Used in Investing Activities		(5,917,409	)		(4,303,363	)		(469,799	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long-term liabilities		(588,560	)		(2,977,802	)		(325,088	)
Repayments of bonds		—			(504,101	)		(55,033	)
Cash dividends paid		(3,645,348	)		(2,536,732	)		(276,936	)
Security deposits		(38,101	)		—			—
Received of long-term liabilities		618,486			693,058			75,662
Decrease (Increase) in escrow account		(447,838	)		232,837			25,419
Net Cash Used in Financing Activities		(4,101,361	)		(5,092,740	)		(555,976	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(875,030	)		906,422			98,955
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENT		36,361			111,572			12,180
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		5,699,070			5,094,472			556,165
CASH AND CASH EQUIVALENTS AT SEPT 30,2004		4,860,401			6,112,466			667,300

10

Table 5
FINANCIAL RATIOS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 & 2004

	2003		2004		Growth (%)
1	2		3		4=(3-2)/2
Contribution of pulses to total fixed-phone revenue:
Local Calls (%)		26.55		31.06		4.50
Domestic Long Distance Calls (%)		47.01		38.24		(8.77	)
Monthly subscription charges (%)		21.65		27.08		5.43
Installation charges (%)		2.30		2.07		(0.23	)
Phone-card		0.36		0.21		(0.15	)
Others (%)		2.12		1.35		(0.77	)
Contribution to total operating revenues:
Cellular (%)		31.20		30.74		(0.47	)
Fixed-phone (%)		33.02		30.59		(2.42	)
Revenue under JOS (%)		5.54		1.77		(3.77	)
Interconnection (%)		15.91		17.45		1.54
Network (%)		1.65		1.87		0.22
Data dan internet (%)		10.91		13.43		2.52
Revenue under RSA (%)		0.95		3.15		2.20
Other telecommunications services (%)		0.82		1.00		0.18
EBITDA (Rp million) (*)		12,664,229		15,455,651		22.04
EBITDA margin (%)		64.56		61.77		(2.78	)
Operating margin (%)		45.00		41.67		(3.34	)
Profit Margin (%)		22.49		20.08		(2.41	)
Current ratio (%)		85.74		91.97		6.23
Return on Assets (%)		9.08		8.95		(0.13	)
Return on Equity (%)		28.17		26.03		(2.13	)
Total Liabilities to Equity (%)		189.24		167.63		(21.61	)
Gearing (Net Debt to Equity) (%)		68.19		39.29		(28.90	)
Debt to Equity (%)		102.48		72.63		(29.85	)
Debt to EBITDA (%)		126.73		90.70		(36.04	)
Debt Service Ratio (Times)		2.8		4.4		1.59
EBITDA to Interest Expense (times)		13.4		16.5		3.13
EBITDA to Net Debt (%)		118.6		203.8		85.25
Average revenue pe LIS/month (ARPU)		179,616		197,904		10.18

11

Table 6
FIXED TELEPHONE LINE
AS OF SEPTEMBER 30, 2004

	UNIT	2003				2004		Growth (%)
1	2	3a		3b		4		5=(4-3b)/3b
Exchange Capacity TELKOM Division
Wireline	Lines		7,776,868		8,547,157		8,746,896		2.34	%
Wireless	Lines		306,200		306,200		1,294,065		322.62	%
TELKOM Division	Lines		8,083,068		8,853,357		10,040,961		13.41	%
Exchange Capacity KSO Division
Wireline	Lines		1,589,167		818,878		948,230		15.80	%
Wireless (MSC)	Lines		51,900		51,900		175,200		237.57	%
KSO Division	Lines		1,641,067		870,778		1,123,430		29.01	%
Exchange Capacity TELKOM & KSO Division
Wireline	Lines		9,366,035		9,366,035		9,695,126		3.51	%
Wireless	Lines		358,100		358,100		1,469,265		310.29	%
Total Exchange Cap. TELKOM & KSO (Wireline & Wireless)	Lines		9,724,135		9,724,135		11,164,391		14.81	%
Installed Lines TELKOM Division
Wireline	Lines		7,195,044		7,934,119		8,205,352		3.42	%
Wireless	Lines		377,470		377,470		1,609,377		326.36	%
TELKOM Division	Lines		7,572,514		8,311,589		9,814,729		18.08	%
Installed Lines KSO Division
Wireline	Lines		1,538,610		799,535		920,109		15.08	%
Wireless	Lines		50,100		50,100		138,467		176.38	%
KSO Division	Lines		1,588,710		849,635		1,058,576		24.59	%
Installed Lines TELKOM & KSO Division
Wireline	Lines		8,733,654		8,733,654		9,125,461		4.49	%
Wireless	Lines		427,570		427,570		1,747,844		308.79	%
Total Installed Lines TELKOM & KSO (Wireline & Wireless)	Lines		9,161,224		9,161,224		10,873,305		18.69	%
Subscribers TELKOM Division
Wireline	Lines		6,372,874		7,005,015		7,288,769		4.05	%
Wireless	Lines		111,766		111,766		988,579		784.51	%
TELKOM Division	Lines		6,484,640		7,116,781		8,277,348		16.31	%
Subscribers KSO Division
Wireline	Lines		1,347,555		715,414		800,824		11.94	%
Wireless	Lines		16,175		16,175		91,573		466.14	%
KSO Division	Lines		1,363,730		731,589		892,397		21.98	%
Subscribers TELKOM & KSO Division
Wireline	Lines		7,720,429		7,720,429		8,089,593		4.78	%
Wireless	Lines		127,941		127,941		1,080,152		744.26	%
Total Subscribers — TELKOM & KSO Division (Wireline & Wireless)	Lines		7,848,370		7,848,370		9,169,745		16.84	%
Public Phone TELKOM Division
Wireline	Lines		343,070		373,743		391,955		4.87	%
Wireless	Lines		235		235		2,793		1088.51	%
TELKOM Division	Lines		343,305		373,978		394,748		5.55	%
Public Phone KSO Division
Wireline	Lines		57,151		26,478		27,221		2.81	%
Wireless	Lines		—		—		—		0.00	%
KSO Division	Lines		57,151		26,478		27,221		2.81	%
Public Phone TELKOM & KSO Division
Wireline	Lines		400,221		400,221		419,176		4.74	%
Wireless	Lines		235		235		2,793		1088.51	%
Total Public Phone TELKOM & KSO Division (Wireline & Wireless)	Lines		400,456		400,456		421,969		5.37	%
Lis Fixed TELKOM Division
Wireline	Lines		6,715,944		7,378,758		7,680,724		4.09	%
Wireless	Lines		112,001		112,001		991,372		785.15	%
TELKOM Division	Lines		6,827,945		7,490,759		8,672,096		15.77	%
Lis Fixed KSO Division
Wireline	Lines		1,404,706		741,892		828,045		11.61	%
Wireless	Lines		16,175		16,175		91,573		466.14	%
KSO Division	Lines		1,420,881		758,067		919,618		21.31	%
Lis Fixed TELKOM & KSO Division
Wireline	Lines		8,120,650		8,120,650		8,508,769		4.78	%
Wireless	Lines		128,176		128,176		1,082,945		744.89	%
Total Lines In Services TELKOM & KSO Division (Wireline & Wireless)	Lines		8,248,826		8,248,826		9,591,714		16.28	%

Column 3a
TELKOM Division includes:
Regional Division — I Sumatera
Regional Division — II Jakarta
Regional Division — III West Java
Regional Division — V East Java
Regional Division — VI kalimantan Column 3b
TELKOM Division includes:
Regional Division — I Sumatera
Regional Division — II Jakarta
Regional Division — III West Java
Regional Division — IV Central Java
Regional Division — V East Java
Regional Division — VI kalimantan Column 4
TELKOM Division includes:
Regional Division — I Sumatera
Regional Division — II Jakarta
Regional Division — III West Java
Regional Division — IV Central Java
Regional Division — V East Java
Regional Division — VI kalimantan

12

Table 7
PULSE PRODUCTION
AS OF SEPTEMBER 2004

	UNIT	2003				2004		GROWTH (%)
1	2	3a		3b		4		5=(4-3)/3
Production:
Subscriber — TELKOM Division
Wireline	Pulses		37,851,201,354		41,457,220,176		43,857,424,043		5.79	%
Wireless (exclude data & sms)			125,707,714		125,707,714		37,219,052,193
Total Subscriber Production — TELKOM (Division Wireline & Wireless)	Pulses		37,976,909,068		41,582,927,890
Subscriber — KSO Division
Wireline	Pulses		8,515,495,360		4,909,476,538		5,117,029,662		4.23	%
Wireless (exclude data & sms)			4,221,250		4,221,250		5,007,618,838
Total Subscriber Production — KSO Division (Wireline & Wireless)	Pulses		8,519,716,610		4,913,697,788
Subscriber TELKOM & KSO Division
Wireline	Pulses		46,366,696,714		46,366,696,714		48,974,453,705		5.62	%
Wireless (exclude data & sms)			129,928,964		129,928,964		42,226,671,031
Total Subscriber Production — TELKOM & KSO Division (Wireline & Wireless)	Pulses		46,496,625,678		46,496,625,678
Public Phone — TELKOM Division
Wireline	Pulses		10,102,826,694		11,703,514,904		10,541,111,720		-9.93	%
Wireless (exclude data & sms)			820,383		820,383		838,590,731
Total Public Phone Production — TELKOM Division (Wireline & Wireless)	Pulses		10,103,647,077		11,704,335,287
Public Phone — KSO Division
Wireline	Pulses		3,353,338,039		1,752,649,829		1,761,545,418		0.51	%
Wireless (exclude data & sms)			—		—		110,385,306
Total Public Phone Production — KSO Division (Wireline & Wireless)	Pulses		3,353,338,039		1,752,649,829
Public Phone — TELKOM & KSO Division
Wireline	Pulses		13,456,164,733		13,456,164,733		12,302,657,138		-8.57	%
Wireless (exclude data & sms)			820,383		820,383		948,976,037
Total Public Phone Production — TELKOM & KSO Division (Wireline & Wireless)	Pulses		13,456,985,116		13,456,985,116
Lines in Services — Production
Wireline	Pulses		59,822,861,447		59,822,861,447		61,277,110,843		2.43	%
Wireless (exclude data & sms)			130,749,347		130,749,347		43,175,647,068
Total LIS’s Pulse Production TELKOM & KSO Division (Wireline & Wireless)	Pulses		59,953,610,794		59,953,610,794
Productivity Per Average Subscriber Line
Wireline	Pulses/Line		6,158		6,158		6,162		0.06	%
Wireless (* 2003 Pulse/Line, 2004 Second/Line)			1,904		1,904		62,819
Pulses Per Avrg, Subscr, Line (TELKOM & KSO Division)	Pulses/Line		6,120		6,120
Productivity Per Average LIS
Wireline	Pulses/Line		5,846		5,846		7,328		25.35	%
Wireless			1,901		1,901		64,072
Pulses Per Average LIS (TELKOM & KSO Division)	Pulses/Line		5,812		5,812		—

Wireless production: 2003 (pulse), 2004 (second)

Column 3a
TELKOM Division includes:
Regional Division — I Sumatera
Regional Division — II Jakarta
Regional Division — III West Java
Regional Division — V East Java
Regional Division — VI kalimantan Column 3b
TELKOM Division includes:
Regional Division — I Sumatera
Regional Division — II Jakarta
Regional Division — III West Java
Regional Division — IV Central Java
Regional Division — V East Java
Regional Division — VI kalimantan Column 4
TELKOM Division includes:
Regional Division — I Sumatera
Regional Division — II Jakarta
Regional Division — III West Java
Regional Division — IV Central Java
Regional Division — V East Java
Regional Division — VI kalimantan

13

Table 8
OPERATIONAL PERFORMANCE REGIONAL DIVISION
AS OF SEPTEMBER 30, 2003 and 2004

	DIVISI		Sept 30, 2003		Sept 30, 2004		GROWTH (%)
1. EXCHANGE CAPACITY
a. EXCHANGE CAPACITY		1		1,292,166		1,329,458		2.89	%
		2		3,439,229		3,476,818		1.09	%
		3		883,450		890,072		0.75	%
		4		770,289		770,289		0.00	%
		5		1,739,917		1,832,805		5.34	%
		6		422,106		447,454		6.01	%
		7		818,878		948,230		15.80	%
SUB TOTAL				9,366,035		9,695,126		3.51	%
b. WIRELESS (MSC)		1		72,600		296,273		308.09	%
		2		101,700		380,892		274.53	%
		3		—		109,050		0.00	%
		4		—		254,150		0.00	%
		5		114,900		132,250		15.10	%
		6		17,000		121,450		614.41	%
		7		51,900		175,200		237.57	%
SUB TOTAL				358,100		1,469,265		310.29	%
TOTAL EXCHANGE CAPACITY				9,724,135		11,164,391		14.81	%
2. INSTALLED LINES
a. WIRELINE		1		1,252,242		1,292,154		3.19	%
		2		3,168,080		3,223,902		1.76	%
		3		775,099		793,931		2.43	%
		4		739,075		752,161		1.77	%
		5		1,579,048		1,695,750		7.39	%
		6		420,575		447,454		6.39	%
		7		799,535		920,109		15.08	%
SUB TOTAL				8,733,654		9,125,461		4.49	%
b. WIRELESS (BTS)		1		105,850		386,987		265.60	%
		2		133,370		449,940		237.36	%
		3		—		229,100		0.00	%
		4		—		116,550		0.00	%
		5		113,250		264,100		133.20	%
		6		25,000		162,700		550.80	%
		7		50,100		138,467		176.38	%
SUB TOTAL				427,570		1,747,844		308.79	%
TOTAL INSTALLED LINES				9,161,224		10,873,305		18.69	%
3. SUBSCRIBERS
a. WIRELINE		1		1,141,316		1,186,624		3.97	%
		2		2,761,435		2,827,983		2.41	%
		3		683,634		728,362		6.54	%
		4		632,141		654,809		3.59	%
		5		1,395,473		1,501,711		7.61	%
		6		391,016		389,280		-0.44	%
		7		715,414		800,824		11.94	%
SUB TOTAL				7,720,429		8,089,593		4.78	%
b. WIRELESS		1		10,675		144,218		1250.99	%
		2		49,483		260,165		425.77	%
		3		—		61,443		0.00	%
		4		—		138,851		0.00	%
		5		41,207		320,354		677.43	%
		6		10,401		63,548		510.98	%
		7		16,175		91,573		466.14	%
SUB TOTAL				127,941		1,080,152		744.26	%
TOTAL SUBSCRIBERS				7,848,370		9,169,745		16.84	%

14

Table 8 (continued)
OPERATIONAL PERFORMANCE REGIONAL DIVISION
AS OF SEPTEMBER 30, 2003 and 2004

	DIVISI		Sept 30, 2003		Sept 30, 2004		GROWTH (%)
4. PUBLIC PHONE
a. WIRELINE		1		44,663		50,079		12.13	%
		2		154,833		161,938		4.59	%
		3		27,509		27,252		-0.93	%
		4		30,673		30,547		-0.41	%
		5		101,389		106,026		4.57	%
		6		14,676		16,113		9.79	%
		7		26,478		27,221		2.81	%
SUB TOTAL				400,221		419,176		4.74	%
b. WIRELESS		1		104		1,294		1144.23	%
		2		—		—		0.00	%
		3		—		26		0.00	%
		4		—		—		0.00	%
		5		10		510		5000.00	%
		6		121		963		695.87	%
		7		—		—		0.00	%
SUB TOTAL				235		2,793		1088.51	%
TOTAL PUBLIC PHONES				400,456		421,969		5.37	%
5. LINE IN SERVICE
a. WIRELINE		1		1,185,979		1,236,703		4.28	%
		2		2,916,268		2,989,921		2.53	%
		3		711,143		755,614		6.25	%
		4		662,814		685,356		3.40	%
		5		1,496,862		1,607,737		7.41	%
		6		405,692		405,393		-0.07	%
		7		741,892		828,045		11.61	%
SUB TOTAL				8,120,650		8,508,769		4.78	%
b. WIRELESS		1		10,779		145,512		1249.96	%
		2		49,483		260,165		425.77	%
		3		—		61,469		0.00	%
		4		—		138,851		0.00	%
		5		41,217		320,864		678.47	%
		6		10,522		64,511		513.11	%
		7		16,175		91,573		466.14	%
SUB TOTAL				128,176		1,082,945		744.89	%
TOTAL LINE IN SERVICE				8,248,826		9,591,714		16.28	%
6. LINE IN SERVICE PRODUCTION
a. WIRELINE (PULSE)		1		9,860,303,412		10,061,648,403		2.04	%
		2		20,452,115,735		20,693,428,542		1.18	%
		3		4,865,940,269		5,202,784,174		6.92	%
		4		5,206,707,032		5,673,852,900		8.97	%
		5		9,211,324,319		9,260,725,957		0.54	%
		6		3,564,344,314		3,506,095,787		-1.63	%
		7		6,662,126,367		6,878,575,080		3.25	%
SUB TOTAL				59,822,861,447		61,277,110,843		2.43	%
b. WIRELESS (SECOND)		1		—		5,359,079,041
all service production exclude data & sms		2		26,374,522		14,003,408,162
		3		—		2,253,503,107
		4		—		3,326,720,733
		5		89,276,692		10,725,796,235
		6		10,617,469		2,389,135,646
		7		4,480,664		5,118,004,144
SUB TOTAL				130,749,347		43,175,647,068
TOTAL LINE IN SERVICE PRODUCTION				59,953,610,794

Note:
Wireless production: 2003 (pulse), 2004 (second)

15

Table 9
OPERATIONAL RATIO
AS OF SEPTEMBER 2004

	UNIT	2003				2004		GROWTH (%)
1	2	3a		3b		4		5=(4-3)/3
Subscriber Mix — TELKOM Division (Wireline — Wireless)
Bisnis	Percent		20.45		20.04		28.71		43.26	%
Residensial	Percent		79.34		79.78		71.14		-10.82	%
Sosial	Percent		0.20		0.19		0.15		-20.28	%
Subscriber Mix — KSO Division (Wireline — Wireless)
Bisnis	Percent		18.51		20.89		27.24		30.44	%
Residensial	Percent		81.30		78.77		72.62		-7.81	%
Sosial	Percent		0.19		0.34		0.14		-60.28	%
Subscriber Mix — TELKOM & KSO Division (Wireline — Wireless)
Bisnis	Percent		20.12		20.12		28.56		41.99	%
Residensial	Percent		79.68		79.68		71.29		-10.53	%
Sosial	Percent		0.20		0.20		0.15		-26.62	%
Local & LD call contribution on subscriber production
Wireline production (TELKOM & KSO)
Local call	Percent		31.83		31.83		30.88		-2.99	%
Long Distance call	Percent		68.17		68.17		69.12		1.40	%
Wireless production (TELKOM & KSO)
Local call	Percent		31.29		31.29		72.34		131.20	%
Long Distance call	Percent		68.71		68.71		27.66		-59.75	%
Utilization RATE TELKOM & KSO (LIS/IL)
Wireline	Percent		92.98		92.98		93.24		0.28	%
Wireless	Percent		29.98		29.98		61.96		106.68	%
Wireline & Wireless	Percent		90.04		90.04		88.21		-2.03	%
Occupancy Rate TELKOM & KSO (connected/exchange cap.)
Wireline	Percent		87.31		87.31		88.41		1.26	%
Wireless	Percent		35.39		35.39		74.10		109.37	%
Wireline & Wireless	Percent		85.40		85.40		86.53		1.32	%
Call Completion Rate TELKOM & KSO
Local	Percent		76.96		76.96		78.31		1.75	%
Domestic Long Distance	Percent		68.25		67.79		71.08		4.86	%
									0.00	%
Employees
TELKOM Division	Persons		25,291		28,317		25,797		-8.90	%
KSO Division	Persons		7,014		3,988		3,600		-9.73	%
Employees (TELKOM & KSO Division)	Persons		32,305		32,305		29,397		-9.00	%
Productivity (LIS/Employees)
TELKOM Division	Lines/Empl		269.98		264.53		336.17		27.08	%
KSO Division	Lines/Empl		202.58		190.09		255.45		34.39	%
Productivity (TELKOM & KSO Division)	Lines/Empl		255.34		255.34		326.28		27.78	%
Density (LIS Per 100 Inhabitants)
TELKOM Division	Percent		4.36		3.72		3.80		2.09	%
KSO Division	Percent		1.85		2.35		2.75		16.80	%
Density (TELKOM & KSO Division)	Percent		3.53		3.53		3.67		3.74	%

Column 3a
TELKOM Division includes:
Regional Division — I Sumatera
Regional Division — II Jakarta
Regional Division — III West Java
Regional Division — V East Java
Regional Division — VI kalimantan Column 3b
TELKOM Division includes:
Regional Division — I Sumatera
Regional Division — II Jakarta
Regional Division — III West Java
Regional Division — IV Central Java
Regional Division — V East Java
Regional Division — VI kalimantan Column 4
TELKOM Division includes:
Regional Division — I Sumatera
Regional Division — II Jakarta
Regional Division — III West Java
Regional Division — IV Central Java
Regional Division — V East Java
Regional Division — VI kalimantan

16

Table 10
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
BALANCE SHEETS
AS OF SEPTEMBER 30, 2003 AND 2004
(In millions of rupiah and thousands of U.S. Dollar)

ASSETS	2003			2004						Growth
	Rp.			Rp.			US$ (1)
CURRENT ASSETS
Cash and cash equivalents (2)		1,242,725			3,625,078			395,319			192	%
Acct. receivable — net of allow. for doubtful acct.		253,404			233,878			25,505			-8	%
Accrued income — net of allow. for doubtful acct.		346,451			406,092			44,285			17	%
Inventories — net of allow. for obsolescence		47,747			73,471			8,012			54	%
Prepaid tax and expenses		317,479			346,355			37,770			9	%
Advances		1,446			120,975			13,192			8266	%
Others		59,997			1,627			177			-97	%
Total Current Assets		2,269,249			4,807,476			524,260			112	%
PROPERTY, PLANT AND EQUIPMENT
Fixed assets		15,249,228			19,748,405			2,153,588			30	%
Work in progress		236,557			291,982			31,841			23	%
Accumulated depreciation		(3,500,721	)		(5,429,933	)		(592,141	)		55	%
PPE — net book value		11,985,064			14,610,454			1,593,288			22	%
OTHER ASSETS		44,308			33,446			3,647			-25	%
TOTAL ASSETS		14,298,621			19,451,376			2,121,195			36	%
CURRENT LIABILITIES
Short-term loan		—			—			—			—
Accounts payable		305,278			314,760			34,325			3	%
Accrued liabilities		1,454,891			1,985,272			216,496			36	%
Taxes payable		536,701			518,114			56,501			-3	%
Unearned income		462,610			822,854			89,733			78	%
Dividend payable		—			953,325			103,961			78%
Curr. maturities of long-term loan		108,110			262,283			28,602			—
Curr. maturities of obligation under cap. lease		—			—			—			—
Other current liabilities		107,569			—			—			—
Total Current Liabilities		2,975,159			4,856,608			529,618			63	%
LONG-TERM LIABILITIES
Guaranteed notes — net		1,255,555			726,564			79,233			-42	%
Long term loan — net of current maturities		432,440			793,689			86,553			84	%
Total Long-term Liabilities		1,687,995			1,520,253			165,786			-10	%
DEFERRED TAX LIABILITIES — NET		505,612			678,724			74,016			34	%
EQUITY
Capital stock — Rp 1,000,000 par value
Authorized - 650,000 shares
Issued and fully paid — 182,570 shares		182,570			182,570			19,909			0	%
Additional paid-in capital		1,504,854			1,504,854			164,106			0	%
Retained earnings		7,442,431			10,708,367			1,167,761			44	%
Total Equity		9,129,855			12,395,791			1,351,776			36	%
TOTAL LIAB. & STOCKHOLDERS’ EQUITY		14,298,621			19,451,376			2,121,196			36	%

17

Table 11
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2004
(In millions of rupiah and thousands of U.S. Dollar)

	2003			2004						Growth
	Rp.			Rp.			US$ (1)
OPERATING REVENUES
Post-paid		2,554,297			2,829,348			316,624			11	%
Prepaid		5,053,674			7,313,575			818,439			45	%
International roaming		287,658			315,785			35,339			10	%
Interconnection revenues (outpayment) — net		126,007			245,649			27,490			95	%
Total Operating Revenues		8,021,636			10,704,357			1,197,892			33	%
OPERATING EXPENSES
Personnel		264,849			342,521			38,330			29	%
Operation & maintenance		1,334,443			1,506,302			168,566			13	%
General & administrative		279,838			402,153			45,004			44	%
Marketing & selling		122,082			249,973			27,974			105	%
Rev. dependent & other cost of services		407,716			591,946			66,243			45	%
Depreciation and amortization		1,125,062			1,784,779			199,729			59	%
Total Operating Expenses		3,533,990			4,877,674			545,846			38	%
EBIT (EARNINGS BEFORE INTEREST & TAXES)		4,487,646			5,826,683			652,046			30	%
OTHER INCOME/(CHARGES)
Interest income/(expenses)		(75,625	)		(94,150	)		(10,536	)		24	%
Foreign exchange gain/(loss)		2,066			(32,429	)		(3,629	)		-1670	%
Others — net		(13,312	)		29,685			3,322			323	%
Other income/(charges) — net		(86,871	)		(96,894	)		(10,843	)		12	%
INCOME BEFORE TAX		4,400,775			5,729,789			641,203			30	%
PROVISION FOR INCOME TAX		1,345,139			1,738,416			194,541			29	%
NET INCOME		3,055,636			3,991,373			446,662			31	%
EBITDA		5,612,708			7,611,462			851,775			36	%

18

Table 12
PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
OPERATIONAL INDICATORS AS OF SEPT 30, 2003 & 2004

	Unit	2003			2004			Growth
CUSTOMER BASE
Net Additions
kartuHALO	Subscriber (000)		66,989			263,965			294	%
simPATI	Subscriber (000)		2,715,110			2,292,148			-16	%
KARTU As	Subscriber (000)		—			1,547,028			—
Total	Subscriber (000)		2,782,099			4,103,141			47	%
Customer base
kartuHALO	Subscriber (000)		989,994			1,270,999			28	%
simPATI	Subscriber (000)		7,802,877			10,873,921			39	%
KARTU As	Subscriber (000)		—			1,547,028			—
Total	Subscriber (000)		8,792,871			13,691,948			56	%
ARPU
Total (9 months average)
kartuHALO	Rp.’000 per mo.		312			309			-1	%
simPATI	Rp.’000 per mo.		93			85			-9	%
KARTU As	Rp.’000 per mo.		—			57			—
Blended	Rp.’000 per mo.		123			106			-14	%
Non-voice/SMS (9 months average)
kartuHALO	Rp.’000 per mo.		28			39			39	%
simPATI	Rp.’000 per mo.		22			23			5	%
KARTU As	Rp.’000 per mo.		—			20			—
SMS
# messages/sub/month kartuHALO	message		108			126			17	%
# messages/sub/month simPATI	message		66			67			2	%
# messages/sub/month KARTU As	message		—			56			—
NETWORK DATA
BTS/TRX
Base stations installed	Unit		4,594			5,762			25	%
Transmit receive exchanges (TRX)	Unit		37,045			46,470			25	%
Capacity
Switching — HLR capacity	Subs. ’000		14,565			22,750			56	%
Switching — VLR capacity	Subs. ’000		12,460			19,435			56	%
Prepaid capacity	Subs. ’000		10,987			15,584			42	%
Quality of service
Call success rate	%		95.34	%		95.83	%		0.49	%
Call completion rate	%		99.20	%		99.36	%		0.16	%
EMPLOYEE DATA
Total employees	person		2,809			3,201			14	%
Efficiency ratio	Subs/employee		3,130			4,277			37	%

19