UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

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

For the month of June, 2006

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	June 13, 2006		By	/s/ Harsya Denny Suryo
			(Signature)
			Harsya Denny Suryo
		Vice President Investor Relation & Corporate Secretary

TICKERS:
NYSE : TLK
LSE : TKIA
JSX : TLKM

DIVISIONS:
Telkom Regions : I, II, III, IV, V, VI
KSO Regions : VII

SHARE IN ISSUES:
20,159,999,280 shares

MAJOR SHARE HOLDERS:
Govt. of Indonesia : 51.19%
Public                     : 48.81%

CONVERSION RATES (US$ 1.00):
2004 = Rp. 9,290.0 (Dec 31, 2004)
2005 = Rp 9,830.0 (Dec 31, 2005)

NOTABLE FIGURES:

n	The Company still maintain its EBITDA Margin (consolidated) above 60%, reaching 61.38%.
n	Robust growth in TELKOM Flexi’s total subscribers and Telkomsel’s total subscribers by 184.2% and 49.0%, respectively.

TELKOM FINANCIAL
INDICATORS – FY05
(in Rp.trillion)

FINANCIAL HIGHLIGHT (Consolidated):

	FY04		FY05		Growth
Key Indicators	(Rp Billion)		(Rp Billion)		(%)
Operating Revenues		33,948		41,807		23.2
Operating Expenses		19,360		24,636		27.3
Operating Income (EBIT)		14,588		17,171		17.7
EBITDA		21,899		25,660		17.2
Net Income (NI)		6,615		7,994		20.8
Net Income / Share (Rp)		328.10		396.51		20.8
Net Income / ADS (Rp)		13,124.14		15,860.25		20.8
EBITDA Margin (%)		64.51		61.38		(3.13	)

FIXED LINE LIS vs CELLULAR SUBSCRIBERS
FY05
(in million)

OPERATIONAL HIGHLIGHT:

Description	Unit			FY04		FY05		Growth (%)
TELKOM
LIS Wireline		(000	)		8,559		8,686		1.5
LIS Wireless (Flexi)		(000	)		1,429		4,062		184.2
Total		(000	)		9,989		12,748		27.6
TELKOMSEL
Customer :
HALO		(000	)		1,328		1,471		10.7
SimPati		(000	)		11,558		16,004		38.5
Kartu As		(000	)		3,405		6,794		99.5
Total		(000	)		16,291		24,269		49.0

* LIS (Line in Service) = Subscribers + Public Phone

DISCLAIMER

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

Investor Relations Dept.
PT. TELLEKOMUNIKASI INDONESIA Tbk
Grha Citra Caraka
Jl. Gatot Subroto Kav. 52, 5^th floor
Phone    : 62 21 5215109
Fax        : 62 21 5220500
Email     : investor@telkom.co.id
Website : www.telkom-indonesia.com

 2

The Full Year 2005 Results

PT. TELEKOMUNIKASI INDONESIA, Tbk.
ANNOUNCEMENT FOR
THE YEAR END OF 2005 RESULTS (Audited)

Jakarta, June 13, 2006 — PT Telekomunikasi Indonesia, Tbk. (“TELKOM” or “the Company”), has announced its operational and consolidated financial statements results for the year end of 2005. All financial figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP) and expressed an unqualified opinion from the Auditor.

Financial Result

Profit and Loss Statement

Financial results as of December 31, 2005 compared to the same period ended December 31, 2004.

Total Operating Revenues increased by Rp. 7,859.4 billion or 23.2% compared to the same period last year, summarized as follows:

Revenues Contribution FY 2005:

§	Cellular Revenues increased by Rp. 4,149.7 billion or 39.8% compared to the same figure last year. The increase in this revenue was primarily due to an increase in air time charges, connection fee charges for new subscribers and features, partially offset by a decrease in monthly subscription charges. The increase in Cellular Revenues was attributable to 49.0% growth in Telkomsel’s total subscribers to 24.3 million subscribers as of December 31, 2005.
§	Data and Internet Revenues increased by Rp.2,125.6 billion or 44.2% compared to the same figure last year. The increase in this revenue was primarily due to significant increases in SMS revenues, internet connectivity revenues and data communications revenues, partially offset by a decrease in VoIP revenues. SMS revenues increased by 49.0%, mainly due to a significant growth in SMS traffic from Telkomsel subscribers.
§	Net Interconnection Revenues increased by Rp.1,554.1 billion or 25.1% compared to the same figure last year. Cellular interconnection revenues increased by Rp.1,333.5 billion or 24.9%. The increase was

 3

The Full Year 2005 Results

primarily due to the growth of cellular subscribers in Indonesia. International interconnection revenues increased by Rp.213.6 billion or 33.3%, primarily due to an increase in incoming and outgoing IDD traffic from domestic operators.

Expenses Contribution FY 2005:

§ Fixed line Revenues increased by Rp. 136.3 billion or 1.3%. The increase was primarily due to an increase in fixed wireless revenues, partially offset by a decrease in fixed line revenues. The increase in fixed wireless revenues was primarily attributable to a 184.2% growth in the number of subscribers and line in service for fixed wireless to 4.1 million as of December 2005.

Total Operating Expenses increased by Rp. 5,276.5 billion or 27.3%, summarized as follows:

§	Personnel Expense increased by Rp.1,653.0 billion or 33.7% to Rp.6,563.1. The main contributor was the increase in salaries and related benefits, vacation allowance, incentives and other benefits primarily due to the implementation of performance based remuneration system in July 2004, which resulted in increased base salary, and allowances, incentives and bonuses.
§	Operation & Maintenance Expense increased by Rp. 1,386.7 billion or 30.6%. The increase was mainly attributable to an increase in Concession fees as a result from the increase in number of BTS and RBS, and Cost of phone, SIM and RUIM cards for Telkom and Telkomsel prepaid cards.
§	Depreciation Expense increased by Rp.1,132.1 billion or 17.6%. The increase in this revenue was primarily due to Telkomsel’s expansion of its network capacity due to the growth in its subscriber base and increase in Telkom’s capital expenditures for network infrastructures (transmission network, backbone and access network); particularly for fixed wireless.
§	Write-down assets of Rp. 616.8 billion was recognized in 2005, related to transmission installation and equipment of fixed wireless assets. This was made as a result of Telkom’s review of recoverable amount of cash generating unit for fixed wireless assets following the Government’s decision to set aside the 1900 MHz frequency spectrum for exclusive use in 3G services and the 800 Mhz frequency spectrum for CDMA-based technology network commencing at the end of 2007.

 4

The Full Year 2005 Results

As of the period ended December 31, 2005, TELKOM recorded an Operating Income of Rp. 17,170.7 billion or increased by 17.7% compared to the same period last year and EBITDA of Rp. 25,660 billion or increased by 17.2%.

Consolidated Debt Composition FY 2005:

CAPITAL EXPENDITURE

As of December 31, 2005, Telkom (unconsolidated) incurred capital expenditures of Rp. 3,367.8 billion (US$342.6 million), which was less than the Rp.5,572.4 billion originally budgeted in its capital expenditure plan. In addition, Telkomsel incurred capital expenditures of Rp.10,085.7 billion (US$1,026.0 million) for network infrastructure and other investments. Telkom’s other subsidiaries incurred capital expenditures of Rp.99.5 billion (US$10.1 million).

CONSOLIDATED DEBT

As of December 31, 2005, the breakdown of debt portfolio (short-term and long-term) in foreign currencies and Rupiah equivalents were as follows:

	Original (in million)				Rp (in billion)				Portion (%)
Currencies	FY04		FY05		FY04		FY05		FY04			FY05
IDR / Rupiah (billion)		4,550.0		3,757.2		4,550.0		3,757.2		27.4	%		27.9	%
U.S. Dollar		1,065.1		810.6		9,904.2		7,972.5		59.6	%		59.2	%
Japanese Yen		16,670.5		15,527.6		1,512.4		1,302.6		9.1	%		9.7	%
EURO		51.4		36.7		649.8		427.7		3.9	%		3.2	%
Total						16,616.3		13,460.0		100.0	%		100.0	%

UNCONSOLIDATED DEBT (TELKOM as a single entity)

As of December 31, 2005, the breakdown of debt portfolio (short-term and long-term) in original currencies and Rupiah equivalents were as follows:

	Original (in million)				Rp (in billion)				Portion (%)
Currencies	FY04		FY05		FY04		FY05		FY04			FY05
IDR / Rupiah (billion)		4,527.9		3,556.3		4,527.9		3,556.3		30.9	%		28.6	%
U.S. Dollar		925.3		770.0		8,605.1		7,572.7		58.8	%		60.9	%
Japanese Yen		16,670.5		15,527.6		1,512.4		1,302.6		10.3	%		10.5	%
Total						14,645.4		12,431.6		100	%		100	%

TELKOM hedged its foreign currency exposures through time deposit placements, mainly in US Dollars. As of December 31, 2005, the

 5

The Full Year 2005 Results

Company’s deposits covered approximately 22.5% of foreign debts from January 1, 2006 to December 31, 2006.

OPERATIONAL RESULTS

Fixed-Lines in Service (including Fixed Wireless)

As of December 31, 2005, TELKOM including KSO VII, recorded 12.7 million fixed lines in service, consisting of 8.7 million fixed wireline and 4.0 million fixed wireless.

During the year 2005, penetration rate for fixed wireline and fixed wireless was 5.2 or increased by 35.2 % compared to same period last year.

Fixed-Wireless CDMA Services

As of December 31, 2005, TELKOMFlexi contributed to TELKOM revenues in the amount of Rp.1,582.6 billion. In this period, TELKOMFlexi was available in 231 cities with 1,448 BTS.

For detail information of TELKOMFlexi performance as of December 31, 2006, please see on Table 7.

TELKOM International Call 007 (TIC-007)

As of December 31, 2005, TIC-007 has generated Rp.1,075.3 billion in revenues (gross basis), derived from TIC-007 outgoing call revenues, outgoing and incoming interconnection revenues. TELKOM also recorded incoming and outgoing international traffics of 424.8 million minutes and 130.3 million minutes, respectively.

Cellular Services

Telkomsel is the largest mobile communication company in Indonesia with more than 50 % subscribers market share, with a total number of 24.3 million subscribers as of December 31, 2005.

Data and Internet Services

In the year 2005, an average of approximately 500,000 telephone subscribers accessed Telkomnet Instan and premium prepaid dial-up internet services per month. Subscribers utilized a total of 2.8 billion

6

The Full Year 2005 Results

minutes of Telkomnet Instan or an increased by 10% from the same period last year.

Broadband Services (Speedy)

As of December 31, 2005, there were 30,662 broadband internet access subscribers which were available in Jakarta, Surabaya and Makasar. This service is expected to cover all of Divisions I to VII by the end of 2006. The revenues from Speedy service for the year end 2005 has reached Rp.103.4 billion.

Human Resource

As of December 31, 2005, the total number of employees at TELKOM (as a single entity) was 28,179 persons consisting of 24,966 persons in the TELKOM Regions and 3,213 persons in the KSO Region.

Productivity per employee as measured by the number of fixed lines in service per employee as of December 31, 2005 was 452 compared to 340 in 2004.

RECENT DEVELOPMENT

In reference to the results of the Extraordinary General Shareholders Meeting on December 21, 2005, TELKOM as of June 9, 2006, has executed shares buy-back in the New York Stock Exchange and Jakarta Stock Exchange, with a total amount of 23,543,500 shares or 2.34% from the maximum amount purchase allowed.

Jakarta, June 13, 2006

HARSYA DENNY SURYO
VP Investor Relations and Corporate Secretary

7

The Full Year 2005 Results

PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (AUDITED)
As of December 31, 2004 and 2005
(in millions Rupiah)

	2004*		2005
	Rp		Rp
	(As restated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		4,856,123		5,374,684
Temporary investments		19,949		22,064
Sub total		4,876,073		5,396,747
Trade accounts receivables
Related parties — net of allowance for doubtful accounts of Rp 64,928 million in 2004 and Rp 84,275 million in 2005		419,104		530,370
Third parties — net of allowance for doubtful accounts of Rp 457,138 million in 2004 and Rp 601,393 million in 2005		2,899,999		3,047,539
Sub total		3,319,102		3,577,909
Other accounts receivable — net of allowance for doubtful accounts of Rp 9,236 million in 2004 and Rp 4,402 million in 2005		55,769		153,247
Inventories — net of allowance for obsolescence of Rp 54,733 million in 2004 and Rp 48,347 million in 2005		203,085		220,327
Prepaid expenses		628,069		777,869
Prepaid taxes		77,228		18,913
Other current Assets		44,608		159,537
TOTAL CURRENT ASSETS		9,203,934		10,304,550
NON-CURRENT ASSETS
Long-term investments — net		82,613		101,400
Property, plant and equipment — net of accumulated depreciation of Rp 29,297,163 million in 2004 and Rp 37,092,663 million in 2005		39,572,099		45,643,243
Property, plant and equipment under revenue-sharing arrangements — net of accumulated depreciation of Rp 694,570 million in 2004 and Rp 458,234 million in 2005		499,127		549,405
Prepaid pension benefit costs		1,362		640
Advances and other non current assets		1,372,351		946,037
Goodwill and other intangible assets- net of accumulated amortization of Rp 1,846,034 million in 2004 and Rp 2,764,187 million in 2005		5,411,425		4,493,272
Escrow accounts		36,281		132,497
TOTAL NON-CURRENT ASSETS		46,975,258		51,866,494
TOTAL ASSETS		56,179,192		62,171,044

*) Consolidated Financial Statement as of December 31, 2004 and for the year ended December 31, 2004 has been restated for the application of Revised PSAK 24 (Revision 2004)

8

The Full Year 2005 Results

PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of December 31, 2004 and 2005
(in millions Rupiah)

	2004*			2005
	Rp			Rp
	(As restated)
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade accounts payable
Related parties		643,094			1,014,389
Third parties		3,611,456			4,281,285
Other accounts payable		5,073			6,677
Taxes payable		1,592,479			2,469,765
Dividens payable		62,689			3,276
Accrued expenses		1,051,366			1,521,247
Unearned income		1,030,000			1,592,718
Advances from customers and suppliers		278,430			223,086
Short-term bank loans		1,101,633			173,800
Current maturities of long-term liabilities		2,300,822			2,226,925
TOTAL CURRENT LIABILITIES		11,677,042			13,513,168
NON-CURRENT LIABILITIES
Deferred tax liabilities — net		2,927,567			2,391,810
Unearned income on revenue-sharing arrangements		360,332			425,484
Unearned initial investor payments under joint operation scheme		20,453			7,311
Accrued Long service awards		449,841			524,524
Accrued post-retirement health care benefits		2,983,707			3,048,021
Accrued pension and other post retirement benefit costs		1,479,918			1,330,664
Long-term liabilities — net of current maturities
Two-step loans — related party		5,363,283			4,760,199
Notes and bonds		2,331,465			1,456,669
Bank loans		1,775,799			1,752,104
Liabilities of business acquisitions		3,743,317			3,127,959
Obligation under capital leases		—			235,537
Sub total long-term liabilities — net of current maturities		13,213,864			11,332,468
TOTAL NON-CURRENT LIABILITIES		21,435,682			19,060,282
MINORITY INTEREST		4,938,432			6,305,193
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 Series 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
Additional paid-in capital		1,073,333			1,073,333
Difference in value of restructuring transactions between entities under common control		(7,288,271	)		90,000
Difference due to change of equity in associated companies		385,595			385,595
Unrealized holding gain (loss) on available for sale securities		884			(748	)
Translation adjustment		229,595			233,253
Retained earnings
Appropriated		1,680,813			1,803,397
Unappropriated		17,006,087			14,667,571
TOTAL STOCKHOLDERS’ EQUITY		18,128,036			23,292,401
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		56,179,192			62,171,044

*) Consolidated Financial Statement as of December 31, 2004 and for the year ended December 31, 2004 has been restated for the application of Revised PSAK 24 (Revision 2004)

9

The Full Year 2005 Results

PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME ( AUDITED)
FOR THE YEARS ENDED DECEMBER 31, 2004 and 2005
(in millions of Rupiah, except per share and per ADS data)

	2004*			2005
	Rp			Rp
	(As restated)
OPERATING REVENUES
Telephone
Fixed lines		10,645,021			10,781,252
Cellular		10,421,298			14,570,958
Interconnection		6,187,981			7,742,084
Joint operation schemes		656,614			588,647
Data and Internet		4,808,742			6,934,324
Network		654,309			586,636
Revenue-sharing arrangements		280,576			302,282
Other telecommunications services		293,225			301,001
Total Operating Revenues		33,947,766			41,807,184
OPERATING EXPENSES
Personnel		4,909,965			6,563,047
Depreciation		6,438,557			7,570,739
write-down of assets		—			616,768
Loss on procurement commitments		—			79,359
Operations, maintenance and telecommunications services		4,529,587			5,916,341
General and administrative		2,599,847			2,763,951
Marketing		881,930			1,126,229
Total Operating Expenses		19,359,886			24,636,434
OPERATING INCOME		14,587,880			17,170,750
OTHER INCOME (EXPENSES)
Interest income		317,941			344,686
Interest expense		(1,270,136	)		(1,177,268	)
Gain (loss) on foreign exchange — net		(1,220,760	)		(516,807	)
Equity in net income of associated companies		3,420			10,879
Others — net		331,050			409,184
Other Income (Expenses) — net		(1,838,485	)		(929,326	)
INCOME BEFORE TAX		12,749,395			16,241,424
TAX EXPENSE
Current tax		(4,267,111	)		(5,719,644	)
Deferred tax		88,585			535,757
TAX EXPENSE		(4,178,526	)		(5,183,887	)
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		8,570,869			11,057,537
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES, NET		(1,956,301	)		(3,063,971	)
NET INCOME		6,614,568			7,993,566
BASIC EARNINGS PER SHARE
NET INCOME PER SHARE		328.10			396.51
NET INCOME PER ADS (40 SERIES B SHARES PER ADS)		13,124.14			15,860.25

*) Consolidated Financial Statement as of December 31, 2004 and for the year ended December 31, 2004 has been restated for the application of Revised PSAK 24 (Revision 2004)

 10

The Full Year 2005 Results

BREAKDOWN OF INCOME STATEMENT
FOR THE YEARS ENDED DECEMBER 3, 2004 and 2005
(in millions of Rupiah, except per share and per ADS data)

	2004*		2005		Growth
	(As restated)
1	2		3		4 = (3-2)/2
OPERATING REVENUE:
Fixed Lines (wireline + wireless)
Local		3,194,977		3,466,690		8.5
Long distance		4,244,333		3,756,447		(11.5	)
Local and domestic long-distance usage		7,439,310		7,223,137		(2.9	)
Monthly subscription charges		2,934,899		3,289,750		12.1
Instalation charges		201,313		197,266		(2.0	)
Phone cards		15,561		10,943		(29.7	)
Others		53,938		60,156		11.5
Total Fixed lines Revenues		10,645,021		10,781,252		1.3
Cellular		10,421,298		14,570,958		39.8
Interconnection
Cellular		5,351,613		6,685,138		24.9
International		641,210		854,766		33.3
Other		195,158		202,180		3.6
Total Interconnection Revenues		6,187,981		7,742,084		25.1
Joint Operation Scheme
Minimum TELKOM Revenues		295,955		268,629		(9.2	)
Share in Distributable KSO Revenues		349,528		318,556		(8.9	)
Amortization of unearned initial investor payments under Joint Operation Scheme		11,131		1,462		(86.9	)
Total Joint Operation Scheme Revenues		656,614		588,647		(10.4	)
Data and Internet
SMS		3,562,726		5,309,244		49.0
Internet		554,948		711,375		28.2
Data Communication		360,642		610,367		69.2
VOIP		318,854		292,750		(8.2	)
E-Business		11,572		10,588		(8.5	)
Total Data and Internet Revenues		4,808,742		6,934,324		44.2
Network
Leased lines		443,408		347,105		(21.7	)
Satellite transponder lease		210,901		239,531		13.6
Total Network Revenues		654,309		586,636		(10.3	)
Revenue Sharing Arrangement Revenues		280,576		302,282		7.7
Other Telecommunications Services (OTS)
Directory assistance		282,464		281,090		(0.5	)
Others		10,761		19,912		85.0
Total OTS Revenues		293,225		301,001		2.7
TOTAL OPERATING REVENUES		33,947,766		41,807,184		23.2
OPERATING EXPENSES:
Personnel
Salaries and other benefits		3,154,018		4,199,306		33.1
Employee income tax		523,787		856,451		63.5
Early retirements		243,466		486,374		99.8
Post-retirement benefit cost		988,695		1,020,917		3.3
Total Personnel		4,909,965		6,563,047		33.7

*) Consolidated Financial Statement as of December 31, 2004 and for the year ended December 31, 2004 has been restated for the application of Revised PSAK 24 (Revision 2004)

11

The Full Year 2005 Results

BREAKDOWN OF INCOME STATEMENT
FOR THE YEARS ENDED DECEMBER 3, 2004 and 2005
(in millions of Rupiah, except per share and per ADS data)

	2004*			2005			Growth
	(As restated)
1	2			3			4 = (3-2)/2
Depreciation		6,438,557			7,570,739			17.6
Write-down assets		—			616,768
Loss on procurement commitment		—			79,359
Operation, maintenance and telecommunications services
Operations and maintenance		2,398,159			3,075,092			28.2
Concession fees		807,309			1,257,376			55.7
Cost of phone, SIM and RUIM cards		366,661			582,351			58.8
Electricity, gas and water		385,662			372,526			(3.4	)
Vehicles and supporting facilities		181,737			217,217			19.5
Others		390,060			411,778			5.6
Total O & M		4,529,587			5,916,341			30.6
General and administrative
Amortization of goodwill and other Intangible assets		872,330			918,153			5.3
Social contribution and other		814,176			849,299			4.3
Provision for doubtful accounts and inventory obsolescence		357,695			488,973			36.7
Collection expenses		358,957			379,056			5.6
Others		196,689			128,470			(34.7	)
Total G & A		2,599,847			2,763,951			6.3
Marketing		881,930			1,126,229			27.7
TOTAL OPERATING EXPENSES		19,359,886			24,636,434			27.3
OPERATING INCOME		14,587,880			17,170,750			17.7
OTHER INCOME (EXPENSES)
Interest income		317,941			344,686			8.4
Interest expense		(1,270,136	)		(1,177,268	)		(7.3	)
Gain (loss) on foreign exchange — net		(1,220,760	)		(516,807	)		(57.7	)
Equity in net income of associated companies		3,420			10,879			218.1
Income from supporting activities		112,503			149,344			32.7
Others — net		218,547			259,840			18.9
Total Other Income (Expenses) — net		(1,838,485	)		(929,326	)		(49.5	)
INCOME BEFORE TAX		12,749,395			16,241,424			27.4
TAX EXPENSE
Current tax		(4,267,111	)		(5,719,644	)		34.0
Deferred tax		88,585			535,757			504.8
Total TAX EXPENSE		(4,178,526	)		(5,183,887	)		24.1
INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES		8,570,869			11,057,537			29.0
MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES, net		(1,956,301	)		(3,063,971	)		56.6
NET INCOME		6,614,568			7,993,566			20.8
NET INCOME PER SHARE (FULL AMOUNT)		328.10			396.51			20.8
NET INCOME PER ADS (40 SERIES B SHARES PER ADS) (FULL AMOUNT)		13,124.14			15,860.25			20.8

*) Consolidated Financial Statement as of December 31, 2004 and for the year ended December 31, 2004 has been restated for the application of Revised PSAK 24 (Revision 2004)

12

The Full Year 2005 Results

PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (AUDITED)
FOR THE YEARS ENDED DECEMBER 31, 2004 and 2005

	2004			2005
	Rp			Rp
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from operating revenues
Telephone
Fixed lines		10,084,558			10,668,915
Cellular		10,497,763			14,825,437
Interconnection — net		5,766,444			7,403,322
Joint operation schemes		547,487			614,652
Data and Internet		4,973,559			6,952,323
Other services		1,689,941			1,445,668
Total cash receipts from operating revenues		33,559,752			41,910,317
Cash payments for operating expenses		(12,270,643	)		(14,954,742	)
Cash generated from operations		21,289,109			26,955,575
Interest received		321,677			341,848
Income tax paid		(4,132,359	)		(4,938,916	)
Interest paid		(1,348,919	)		(1,200,484	)
Cash to customers and advances		(78,028	)		(55,343	)
Net Cash Provided by Operating Activities		16,051,480			21,102,680
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of temporary investments and maturity of time deposits		285,264			227,633
Purchase of temporary investments and placements in time deposits		(404,268	)		(226,054	)
Proceeds from sale of property, plant and equipment		67,196			84,621
Proceeds from insurance claim		—			27,580
Acquisition of property, plant and equipment		(8,568,862	)		(12,106,930	)
Payment of advance for the purchase property, plant and equipment		(1,063,382	)		(212,187	)
Decrease in advances and others		123,026			874
Acquisition of businesses, net of cash acquired		(27,797	)		(4,000	)
Payments of advances for investments in shares of stock		—			—
Acquisition of long-term investments		(9,290	)		(4,250	)
Net Cash Used in Investing Activities		(9,598,113	)		(12,212,713	)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid		(3,129,225	)		(2,980,640	)
Cash dividends paid to minority shareholders		(682,366	)		(1,694,261	)
Increase in escrow accounts		(1,341,546	)		(96,216	)
Proceeds from (repayments of) short term borrowings		1,062,183			(994,709	)
Payments for debt issuance cost		(2,394	)		—
Proceeds from Medium-term Notes		1,080,000			—
Repayments of medium-term notes		—			(470,000	)
Redemption of Telkomsel’s notes		(504,101	)		(780,565	)
Proceeds from long-term borrowings		2,386,748			569,995
Repayments of long-term borrowings		(5,734,156	)		(1,723,126	)
Repayments of promissory notes		(40,008	)		(164,186	)
Repayments of obligations under capital lease		—			(5,643	)
Net Cash Used in Financing Activities		(6,904,865	)		(8,339,351	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(451,498	)		550,616
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		213,149			(32,055	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		5,094,472			4,856,123
CASH AND CASH EQUIVALENTS AT END OF YEAR		4,856,123			5,374,684

13

The Full Year 2005 Results

FINANCIAL RATIO
As of December 31, 2004 and 2005

	2004		2005		Growth (%)
1	2		3		4=(3-2)/2
Contribution of pulses to total fixed-phone revenue:
Local Calls (%)		30.01		32.15		2.14
Domestic Long Distance Calls (%)		39.87		34.84		(5.03	)
Monthly subscription charges (%)		27.57		30.51		2.94
Installation charges (%)		1.89		1.83		(0.06	)
Others (%)		0.51		0.56		0.05
Contribution to total operating revenues:
Cellular (%)		30.70		34.85		4.15
Fixed-phone (%)		31.36		25.79		(5.57	)
Revenue under JOS (%)		1.93		1.41		(0.53	)
Interconnection (%)		18.23		18.52		0.29
Network (%)		1.93		1.40		(0.52	)
Data dan internet (%)		14.17		16.59		2.42
Revenue under RSA (%)		0.83		0.72		(0.10	)
Other telecommunications services (%)		0.86		0.72		(0.14	)
Average Fixed phone Revenue (ARPU) per user/month (Rp’000)		178		153		(14.1	)
EBITDA (Rp billion)		21,899		25,660		17.17
EBITDA margin (%)		64.51		61.38		(3.13	)
Operating margin (%)		42.97		41.07		(1.90	)
Profit Margin (%)		19.48		19.12		(0.36	)
Current ratio (%)		78.82		76.26		(2.57	)
Return on Assets (%)		11.77		12.86		1.08
Return on Equity (%)		36.49		34.32		(2.17	)
Total Liabilities to Equity (%)		182.66		139.85		(42.81	)
Gearing (Net Debt to Equity) (%)		64.56		34.14		(30.42	)
Debt to Equity (%)		91.66		57.88		(33.78	)
Debt to EBITDA (%)		75.88		52.54		(23.34	)
Debt Service Ratio (Times)		4.69		7.20		2.52
EBITDA to Interest Expense (times)		17.24		21.80		4.55
EBITDA to Net Debt (%)		187.11		322.67		135.57

*) The 2004 Consolidated financial ratios have been restated in connection with the restatement of the 2004 consolidated financial statements due to the change in method of accounting for employee benefits.

14

The Full Year 2005 Results

FIXED TELEPHONE LINE

As of December 31, 2004 and 2005

	UNIT	2004		2005		GROWTH (%)
1	2	3		4		5=(4-3)/3
Exchange Capacity TELKOM Division
Wireline	Lines		8,786,887		9,138,167		4.0	%
Wireless	Lines		1,952,644		2,687,348		37.6	%
Total Exchange Cap. TELKOM (Wireline & Wireless)	Lines		10,739,531		11,825,515		10.1	%
Exchange Capacity KSO Division
Wireline	Lines		954,465		1,045,366		9.5	%
Wireless (MSC)	Lines		179,700		329,708		83.5	%
Total Exchange Cap. KSO (Wireline & Wireless)	Lines		1,134,165		1,375,074		21.2	%
Exchange Capacity TELKOM & KSO Division
Wireline	Lines		9,741,352		10,183,533		4.5	%
Wireless	Lines		2,132,344		3,017,056		41.5	%
Total Exchange Cap. TELKOM & KSO (Wireline & Wireless)	Lines		11,873,696		13,200,589		11.2	%
Installed Lines TELKOM Division
Wireline	Lines		8,264,999		8,497,255		2.8	%
Wireless	Lines		2,291,212		3,332,893		45.5	%
Total Installed Lines TELKOM (Wireline & Wireless)	Lines		10,556,211		11,830,148		12.1	%
Installed Lines KSO Division
Wireline	Lines		931,999		998,901		7.2	%
Wireless	Lines		179,717		340,568		89.5	%
Total Installed Lines KSO (Wireline & Wireless)	Lines		1,111,716		1,339,469		20.5	%
Installed Lines TELKOM & KSO Division
Wireline	Lines		9,196,998		9,496,156		3.3	%
Wireless	Lines		2,470,929		3,673,461		48.7	%
Total Installed Lines TELKOM & KSO (Wireline & Wireless)	Lines		11,667,927		13,169,617		12.9	%
Subscribers TELKOM Division
Wireline	Lines		7,323,304		7,413,769		1.2	%
Wireless	Lines		1,313,240		3,739,095		184.7	%
Total Subscribers TELKOM Division (Wireline & Wireless)	Lines		8,636,544		11,152,864		29.1	%
Subscribers KSO Division
Wireline	Lines		816,208		869,631		6.5	%
Wireless	Lines		112,433		311,046		176.7	%
Total Subscribers KSO Division (Wireline & Wireless)	Lines		928,641		1,180,677		27.1	%
Subscribers TELKOM & KSO Division
Wireline	Lines		8,139,512		8,283,400		1.8	%
Wireless	Lines		1,425,673		4,050,141		184.1	%
Total Subscribers —TELKOM & KSO Division (Wireline & Wireless)	Lines		9,565,185		12,333,541		28.9	%
Public Phone TELKOM Division
Wireline	Lines		391,673		373,924		-4.5	%
Wireless	Lines		3,695		11,726		217.3	%
Total Public Phone TELKOM Division (Wireline & Wireless)	Lines		395,368		385,650		-2.5	%
Public Phone KSO Division
Wireline	Lines		28,165		28,807		2.3	%
Wireless	Lines		—		—		0.0	%
Total Public Phone KSO Division (Wireline & Wireless)	Lines		28,165		28,807		2.3	%
Public Phone TELKOM & KSO Division
Wireline	Lines		419,838		402,731		-4.1	%
Wireless	Lines		3,695		11,726		217.3	%
Total Public Phone TELKOM & KSO Division (Wireline & Wireless)	Lines		423,533		414,457		-2.1	%
Lis Fixed TELKOM Division
Wireline	Lines		7,714,977		7,787,693		0.9	%
Wireless	Lines		1,316,935		3,750,821		184.8	%
Total Lines In Services TELKOM (Wireline & Wireless)	Lines		9,031,912		11,538,514		27.8	%
Lis Fixed KSO Division
Wireline	Lines		844,373		898,438		6.4	%
Wireless	Lines		112,433		311,046		176.7	%
Total Lines In Services KSO (Wireline & Wireless)	Lines		956,806		1,209,484		26.4	%
Lis Fixed TELKOM & KSO Division
Wireline	Lines		8,559,350		8,686,131		1.5	%
Wireless	Lines		1,429,368		4,061,867		184.2	%
Total Lines In Services TELKOM & KSO Division (Wireline & Wireless)	Lines		9,988,718		12,747,998		27.6	%

15

The Full Year 2005 Results

PRODUCTION

As of December 31, 2004 and 2005

	UNIT	2004		2005		GROWTH (%)
1	2	3		4		5=(4-3)/3
Production :
Subscriber — TELKOM Division
Wireline	Pulses		58,313,938,481		57,925,779,836		-0.7	%
Wireless (exclude data & sms)	Second		59,345,925,249		190,633,370,909		221.2	%
Subscriber — KSO Division
Wireline	Pulses		6,838,280,419		9,742,512,705		42.5	%
Wireless (exclude data & sms)	Second		7,526,023,968		17,809,805,931		136.6	%
Subscriber TELKOM & KSO Division
Wireline	Pulses		65,152,218,900		67,668,292,541		3.9	%
Wireless (exclude data & sms)	Second		66,871,949,217		208,443,176,840		211.7	%
Public Phone — TELKOM Division
Wireline	Pulses		13,850,294,140		11,084,301,938		-20.0	%
Wireless (exclude data & sms)	Second		1,849,564,741		7,525,522,722		306.9	%
Public Phone — KSO Division
Wireline	Pulses		2,328,265,664		1,913,955,913		-17.8	%
Wireless (exclude data & sms)	Second		164,375,078		120,557,928		-26.7	%
Public Phone — TELKOM & KSO Division
Wireline	Pulses		16,178,559,804		12,998,257,851		-19.7	%
Wireless (exclude data & sms)	Second		2,013,939,819		7,646,080,650		279.7	%
Lines in Services — Production TELKOM & KSO Division
Wireline	Pulses		81,330,778,704		80,666,550,392		-0.8	%
Wireless (exclude data & sms)	Second		68,885,889,036		216,089,257,490		213.7	%
Productivity Per Average Subscriber Line TELKOM & KSO Division
Wireline	Pulses/Line		8,171		8,241		0.8	%
Wireless	Second/Line		79,143		76,132		-3.8	%
Productivity Per Average LIS TELKOM & KSO Division
Wireline	Pulses/Line		9,697		9,355		-3.5	%
Wireless	Second/Line		81,322		78,703		-3.2	%

16

The Full Year 2005 Results

FLEXI PERFORMANCE

As of December 31, 2004 and 2005

	Unit	2004		2005		Growth (%)
Customer base:
Classy/Postpaid	Subs (’000)		654.0		727.1		11.2	%
Trendy/Prepaid	Subs (’000)		745.4		3,240.5		334.7	%
FlexiHome	Subs (’000)		30.0		94.2		214.2	%
Total	Subs (’000)		1,429.4		4,061.9		184.2	%
Net additions:
Classy/Postpaid	Subs (’000)		432.5		81.1		-81.2	%
Trendy/Prepaid	Subs (’000)		708.7		2,495.1		252.1	%
FlexiHome	Subs (’000)		30.0		64.3		114.2	%
Total	Subs (’000)		1,171.3		2,640.5		125.4	%
Sales:
Classy/Postpaid	Subs (’000)		565.4		411.2		-27.3	%
Trendy/Prepaid	Subs (’000)		888.7		3,558.2		300.4	%
FlexiHome	Subs (’000)		30.0		64.3		114.2	%
Total	Subs (’000)		1,484.2		4,033.6		171.8	%
ARPU (12 months avrg):
Postpaid	Rp’000		93.8		123.4		31.6	%
Prepaid	Rp’000		20.4		18.8		-7.8	%
Blended	Rp’000		59.8		47.5		-20.6	%
Network:
BTS	Unit		1,136		1,448		27.5	%
Number city in service	city		192		231		20.3	%

17

The Full Year 2005 Results

PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
BALANCE SHEET
As of December 31, 2004 and 2005
(In millions of rupiah)

	2004			2005
	Rp .			Rp .			Growth (%)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		2,958,606			1,860,615			(37.1	)
Short-term investment		44,955			—			(100.0	)
Acct. receivable — net of allow. for doubtful acct.		191,763			277,035			44.5
Unbilled receivables		435,571			374,001			(14.1	)
Inventories		93,113			79,428			(14.7	)
Prepayments		88,736			419,183			372.4
Claim for tax refund		39,413			31,760			(19.4	)
Others		6,434			5,945			(7.6	)
Total Current Assets		3,858,591			3,047,967			(21.0	)
PROPERTY, PLANT AND EQUIPMENT
Fixed assets		21,004,836			28,996,709			38.0
Work in progress		216,370			2,285,290			956.2
Accumulated depreciation		(6,254,176	)		(9,289,355	)		48.5
PPE — Net Book Value		14,967,030			21,992,644			46.9
OTHER ASSETS
Long-term Investment		9,290			9,290			—
Advances for PPE		439,257			239,219			(45.5	)
Prepayments — non curr. portion		240,030			428,564			78.5
Others		34,557			29,465			(14.7	)
Total Other Assets		723,134			706,538			(2.3	)
TOTAL ASSETS		19,548,755			25,747,149			31.7
CURRENT LIABILITIES
Short-term loan		—			170,000
Accounts payable		107,625			182,532			69.6
Accrued liabilities		1,257,606			2,909,128			131.3
Taxes payable		615,602			1,540,981			150.3
Unearned revenue		995,702			1,419,009			42.5
Curr. maturities of long-term loan		329,486			323,289			(1.9	)
Total Current Liabilities		3,306,021			6,544,939			98.0
NON-CURRENT LIABILITIES
Guaranteed notes — net		736,174			—			(100.0	)
Long term loan — net of current maturities		841,741			504,008			(40.1	)
Provision for employee benefits		41,583			61,318			47.5
Deferred tax liabilities		745,839			896,597			20.2
Total Non-current Liabilities		2,365,337			1,461,923			(38.2	)
EQUITY
Capital stock — Rp 1,000,000 par value
Authorized — 650,000 shares
Issued and fully paid — 182,570 shares		182,570			182,570			—
Additional paid-in capital		1,504,854			1,504,854			—
Retained earnings		12,189,973			16,052,863			31.7
Total Equity		13,877,397			17,740,287			27.8
TOTAL LIAB. & STOCKHOLDERS’ EQUITY		19,548,755			25,747,149			31.7

18

The Full Year 2005 Results

PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
INCOME STATEMENT
As of December 31, 2004 and 2005
(In millions of rupiah)

	2004			2005
	Rp .			Rp .			Growth (%)
OPERATING REVENUES
Post-paid		3,943,281			4,546,828			15.3
Prepaid		11,542,659			17,665,478			53.0
International roaming		643,386			845,872			31.5
Interconnection revenues		2,312,191			3,035,727			31.3
Gross Operating Revenues		18,441,517			26,093,905			41.5
Less:
— Dealer Discounts/Commissions		1,380,282			2,083,808			51.0
— Interconnect / Intl. roaming / Data provider Outpayment		2,296,153			2,877,183			25.3
Net Operating Revenues		14,765,082			21,132,914			43.1
OPERATING EXPENSES
Personnel		486,928			709,508			45.7
Operation & maintenance		1,984,134			2,742,157			38.2
General & administrative		577,495			620,234			7.4
Marketing & selling		355,829			503,989			41.6
Rev. dependent & other cost of services		689,132			1,148,930			66.7
Depreciation and amortization		2,651,028			3,046,632			14.9
Total Operating Expenses		6,744,546			8,771,450			30.1
EBIT (EARNINGS BEFORE INTEREST & TAXES)		8,020,536			12,361,464			54.1
OTHER INCOME/(EXPENSES)
Interest income & financing charges		(99,461	)		17,009			(117.1	)
Foreign exchange gain/(loss)		(62,029	)		(87,965	)		41.8
Others — net		(26,102	)		55,834			(313.9	)
Other income/(expenses) — net		(187,592	)		(15,122	)		(91.9	)
INCOME BEFORE TAX		7,832,944			12,346,342			57.6
PROVISION FOR INCOME TAX		2,359,965			3,699,665			56.8
NET INCOME		5,472,979			8,646,677			58.0
EBITDA		10,671,564			15,408,096			44.4
EBITDA Margin — over net revenues		72	%		73	%		1.0
EBITDA Margin — over gross revenues		58	%		59	%		1.0

19

The Full Year 2005 Results

PT. TELEKOMUNIKASI SELULAR (TELKOMSEL)
OPERATIONAL INDICATORS
As of December 31, 2004 and 2005

	Unit	2004			2005			Growth (%)
CUSTOMER BASE
Net Additions
kartuHALO	Subscriber (000)		321			143			-55	%
simPATI	Subscriber (000)		2,976			4,447			49	%
Kartu As	Subscriber (000)		3,405			3,389			0	%
Total	Subscriber (000)		6,702			7,979			19	%
Customer base
kartuHALO	Subscriber (000)		1,328			1,471			11	%
simPATI	Subscriber (000)		11,558			16,004			38	%
Kartu As	Subscriber (000)		3,405			6,794			100	%
Total	Subscriber (000)		16,291			24,269			49	%
MOU (chargeable minutes of use) — total	billion minutes		6.0			10.5			75	%
ARPU
Total (12 months average)
kartuHALO	Rp.’000 per mo.		304			291			-4	%
simPATI	Rp.’000 per mo.		84			84			0	%
Kartu As	Rp.’000 per mo.		48			45			-6	%
Blended	Rp.’000 per mo.		102			87			-15	%
Non-voice/Data (12 months average)
kartuHALO	Rp.’000 per mo.		41			47			15	%
simPATI	Rp.’000 per mo.		23			25			9	%
Kartu As	Rp.’000 per mo.		17			15			-12	%
Blended	Rp.’000 per mo.		24			24			0	%
Effective ARPU (net booked rev. / average subs / 12)	Rp.’000 per mo.		95			87			-8	%
NETWORK DATA
Network capacity
Base stations installed	Unit		6,205			9,895			59	%
Overall capacity all network elements	Subs. mln.		17.9			26.2			46	%
Quality of service
Call success rate	%		95.19	%		94.32	%		-0.87	%
Call completion rate	%		99.26	%		99.30	%		0.04	%
EMPLOYEE DATA
Total employees	person		3,331			3,566			7	%
Efficiency ratio	Subs/employee		4,891			6,806			39	%