SINGTEL REGIONAL MOBILE INVESTOR DAY 3 DECEMBER 2008

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INDONESIAN TELCO INDUSTRY

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INDONESIAN TELECOM – Low Market Penetration

Big business opportunities:

• high productive age population

• continuous decline of handset price

Telecom Subscribers : 156 million

Full-mobility Penetration Rate : 56%

Estimated Penetration until 2010 : 150 million

Fixed line

8.6

Fixed-wireless

16.6

Full-mobility

130.9

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2000 2001 2002 2003 2004 2005 2006 2007Subscribers Penetration rate

CAGR 00-07 = 59%

Source : Company Data & Market Research

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INDONESIAN TELECOM – Players in the Country September 2008

The Big 3 carry 82% of total

cellular subscribers

46% of full-mobility market

46% of full-mobility market

Note:

1. (e) = estimation from market research. The rest is taken from company releases.

2. Revenue shares are amongst big 3 only for 9M08. Revenues are calculated net of discounts.

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COMPETITIVE CLIMATE – Recent Developments

Q3-2007 - PRESENTBEFORE Q3-2007

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Low tariff – high MOU

Tariff GSM & tariff FWA are comparable

The Big 3 tariff is around US 2 cents

Network development focuses more on

increasing capacity and quality

High stimulation on data/contents or 3G-

related usage through aggressive promos

High tariff – low MOU

Tariff GSM > tariff FWA

The Big 3 tariff was around US 10 cents

Network development focused on rolling out

to new areas

Subtle 3G-related promos

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From Market Leader To Service Leader

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Solid shareholder’ structure brings stronger company value…

65% 35%

3 BOC membersPresiden DirectorFinance Director

Planning & Development Director

2 BOC membersCommerce DirectorOperation Director

Joint Venture Between Strong Incumbent and Dominant Regional Operator

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Complete Product Range Offering Various Services & Programs

------- J U L Y 2 0 0 8 -------

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simPATI price reduced40% from Rp 25/sec to Rp

15/sec on-net.Depending on the time of call,

customers can enjoy Rp 0.5/sec afterwards.

SMS Asik and Nelpon SipKartu As offered SMS packages

ranging from Rp 20 – Rp 50/SMS and Call promo with

only Rp 6.5/sec to all operators & PSTN.

Reduction on GPRS tariff to

Rp 5/kB from Rp 12/kBFor

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Complete Product Range Offering Various Services & Programs

------- A U G U S T 2 0 0 8 -------

Kartu As SpeakSpeakKartu As customers in Eastern Indonesia and Sumatera can

enjoy 1 hour talk (3,600 seconds) on-net by registering

Rp 3,000 which can be used from 02:00-17:00

TELKOMSEL BlackBerry@ Internet Service

is available for all Telkomsel’s

customers with unlimited

capacity (Rp 180,000/30 days).

Telkomsel 3G Babycam,

a video-surveillance-based

technology enables users to

monitor any valuable things

through mobile phones.

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Complete Product Range Offering Various Services & Programs

------- S E P T E M B E R 2 0 0 8 -------

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Kartu As Fressequipped with mobile

advertising platform, whereby users can receive different

information according to the category they chose.

simPATI TALKMANIAfor simPATI users in Greater Jakarta, Java, Bali and NTB.

By registering Rp 2,000, 1.5 hours free on-net call is

earned to be used from 00:00-18:00

simPATI users now have longer active period vouchers with

the same price. For

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Complete Product Range Offering Various Services & Programs

------- OCTOBER 2 0 0 8 -------

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Rp 0.5/second UnlimitedThis promo is extended until

Nov 30, 2008. Modified duration for time-band 2 and

off-net call.

Kartu As 1 Get 1Call/video call (on-net) for 1

minute and directly get 1 minute free, scheme repeats until end of call. Off-net call

Rp 13/second flat all day.

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Complete Product Range Offering Various Services & Programs

------- NOVEMBER 2 0 0 8 -------

Forever Kartu AsBy making a call/SMS minimum

Rp 10 usage within active period, Kartu As and Kartu As Fress customers earn another

30 days active period.

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STRATEGY – Support MOU Increase by Maintaining High Quality Network

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Total Outgoing MOU(billion minutes)

0

5

10

15

20

25

30

Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008

Voice Revenue Per Minute (in Rupiah)

0

200

400

600

800

1,000

Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008

1 2

34

5

12

3

4

5

1 Number 3 player started the price war

2 Telkomsel launched simPATI PeDe and has successfully met the company target for 2007

3 MOU increased 172% QoQ, which caused network quality issue

4 Telkomsel built its capacity to support the MOU increase, applying cyclical scheme

5 Back in the competition with simPATI PeDe Rp 15/sec and stronger fundamental

MOU Q3-2008 QoQ due to company’s focus on capacity building

The network was able to absorb at least 150-200 MOU/subscriber

Revenue per minute has gone down to Rp 200 range due to simPATI price cut, introduction of 4 time-bands, 50% cut on Kartu As price, and lower SMS tariff since April 2008.

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BUSINESS FUNDAMENTAL

BUSINESS FUNDAMENTALS

MARKET STANDPOINT

SUPPLY STANDPOINT

Comparable tariff

60.5 million subscribers

12.6 net adds in 9 months

Successful simPATI Pede21% growth revenue YoY

Successful traffic delivery

Sufficient capacity and quality

Network consolidations

Opex growth efficiency

New businessT-Cash, Broadband, Content

Successful new techologies

EBITDA 65%

Profitability150k/customer

Financing : DER = 40%

Capex/Line :- Multi vendors (lower price)

- Local products ($ lower)

Telkomsel Merah Putih

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COMPANY’S ACTIONS – Have Brought Good simPATI Results

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simPATIRevenue (in bn rupiah)

5,360 5,511

13,67516,585

0

5,000

10,000

15,000

20,000

Q2-08 Q3-08 9M-07 9M-08

3%

21%

PRICE CUT

NET ADDQ3 2008

NET ADD9M 2008

VOICE SMS

-30% -65% 53 K 34 KkartuHALO

-47% -67% 8.5 Mn 14.1 MnsimPATI

(1.5 Mn)-25% -40% 488 KKartu As

simPATIMOU (in mn minutes)

51,036

11,018

23,495

8,710

010,000

20,00030,000

40,00050,000

60,000

Q2-08 Q3-08 9M-07 9M-08

170%

363%

simPATISMS (in mn records)

8,57410,451

12,708

23,918

0

5,000

10,000

15,000

20,000

25,000

30,000

Q2-08 Q3-08 9M-07 9M-08

22%

88%

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FINANCIAL & OPERATIONAL RESULTS – 9M 2008

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9M 2007 9M 2008

OPERATIONAL DATANetwork Data

BTS installed (total) unit 19,767 25,089 27%

Net add BTS unit 3,710 4,231 14%

Overall network capacity mln subs 47.9 62.4 30%

Populated Area 95%

Customer base subs (000) 44,457 60,503 36%

Postpaid subs (000) 1,891 1,947 3%

Prepaid subs (000) 42,566 58,556 38%

Net adds subs (000) 8,860 12,613 42%

Postpaid subs (000) 229 34 -85%

Prepaid subs (000) 8,631 12,580 46%

MOU (minutes of use) billion min 17.6 58.8 234%

ARPU - blended IDR (000) 79 60 -24%

Number of Employees 4,037 4,074 1%

FINANCIAL RESULTSOperating revenues (net) IDR bln 26,497 27,391 3%

Operating expenses IDR bln 12,198 14,665 20%

EBITDA IDR bln 18,521 17,701 -4%

Net income IDR bln 9,721 9,026 -7%

EBITDA margin 70% 65% -5%

Net income margin 37% 33% -4%

ROA 33% 27% -6%

ROE 58% 54% -4%

Growth Efforts to manage opex growth have paid off

YoY 2008 < YoY 2007(Rp 2.47 tn) (Rp 3.30 tn)

Personnel growth 95% (233 bn)

O&M growth 7% (106 bn)

G&A growth 36% (11 bn)

Marketing growth 16% (31 bn)

Other opr. exp. growth 62% (159 bn)

Depreciation exp. growth 32% (359 bn)

Total oper. exp. growth 25% (836 bn)

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OUTLOOK 2008

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CUSTOMER BASE GROWTH 12-15 million customers

REVENUES will grow at low single digit

EBITDA MARGIN around 5% decline

CAPEX around US$ 1.5 billion

Telkomsel remains focus on revenue growth

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THANKYOU

THANKTHANKYOUYOU

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