1. “We accelerate Growth”
“Indonesia – Go Online”
FEBRUARY 15, 2012
“INDONESIA TELECOM OUTLOOK”

2. “From Voice to Data”

3. The Journey… to “Everything Online”
Internet development in Indonesia is quite recent – spurred by social networking
“Mobile Commerce”
“Social Media”
To offer goods…
To share… To find merchandise…
To express opinions… To advertise…
To be a community member… To do payments…
“Need to be connected”
To contact somebody…
To make appointment…
To find information….
2000-2007 2008-2011 2011-Onward

4. What we had in 2011…
We are experiencing an era where “voice” market is maturing & mobile
internet introduction to the market
Subscribers penetration
SIM vs. Unique Subs. (%)
• In 2010, the wireless SIM-based
350,000 124%
129% penetration rate was 97.3%
120%
113%
300,000 106%
97% 77% • Average Indonesian held 1.68 SIM
74%
71%
250,000
67% cards, resulting in a unique
63%
200,000 58% subscriber penetration rate of only
~60%
150,000
100,000 • Service providers bundling end user
50,000
devices with subscription plans with
lowering subscription fee
-
2010 2011E 2012E 2013E 2014E 2015E
• Trending down internet-able device
price such as dongle, netbook,
Number of SIM circulation tablets
SIM Penetration
Unique subs. Penetration
Source: Company website, Bank reports, Frost & Sullivan analysis

5. Where we are now ….
Critical mass is achieved with slowing-down growth rate
Mobile Subscription
Penetration Rate - SIM (%)
129%
153.8
106%
111.9
Mobile Subscriber Growth Rate (%)
12
Base Year (2011) 2015E
Projections (2016)
4
Base Year (2011) Projections (2016)
Source: Company website, Bank reports, Frost & Sullivan analysis

6. What happened on the revenue side…
“Voice” revenue growth is tapering as market is maturing & operators
need to introduce new source of revenue growth
Cellular Industry Market Revenue
120,000 (IDR Bn) • As overall industry is maturing –
total revenue growth is projected in
100,000
range of 4% - 6% on the next 5
years
1.10
80,000
• Key factors impacting revenue &
60,000 1.06 investment:
1.05 1.05
1.04
• Increase in CAPEX needs in
40,000 line with increase in data
services
20,000 • Data revenue monetization that
is still in “learning curve”
0 • Operator anticipation for LTE
2008A 2009A 2010A 2011E 2012E 2013E 2014E network deployment
Revenue growth
Source: Company website, Bank reports, Frost & Sullivan analysis

7. …Still on the revenue side…
“Non-voice” revenue is taking up as operators introducing data-centric
services to the market
Voice vs. Non-voice Revenue
Composition (%)
33% 38% 40%
Data Service Revenue
Composition (%)
67% 62% 60%
20% 18% 22%
2009 2010 2011
Voice Non-voice
80% 82% 78%
2009 2010 2011
SMS Non-SMS
Source: Company website, Bank reports, Frost & Sullivan analysis

8. What happened on the network side…
Majority of Operators’ BTS is 2G hence significant CAPEX will be needed
within the next 3-5 years to improve 3G coverage
BTS Composition
(Three major operators)
100,000 • Recent data surging mainly lead by
80,000 15% - 20% 3G enabled handset and
expected to increase to 25% - 30%
60,000
3G in 2012
40,000 2G
20,000
-
2009 2010 Q1-11 Q2-11 Q3-11
Handset Market Composition (%)
2009 2010 Q1-11 Q2-11 Q3-11
2G 85% 80% 82% 82% 81%
3G 12% 17% 18% 18% 19%
9% 13% 18% 23% 30% 36%
• Lack of 3G coverage has impact to 64%
64%
63%
3G+
Operators’ CAPEX spending going 62% 2.5G
59%
56%
Non-GPRS
forward in improving its data
coverage & capacity 27% 23% 19% 15% 12% 9%
2009 2010 2011 2012F 2013F 2014F
Source: Company website, Bank reports, Frost & Sullivan analysis

9. If we see Indonesia in the Region…
Double digit growth a thing of the past
Near saturating market for penetration rate coupled with reducing ARPU is limiting the revenue
growth
Mobile Revenue & Penetration Rate APAC, 2010
16.0%
India
14.0%
12.0%
Mobile Revenue CAGR (2009-2015)
10.0% Bangladesh
(2009
Cambodia
8.0%
Indonesia
6.0% China
Pakistan Vietnam
Philippines
Malaysia Hong Kong
4.0% Sri Lanka Thailand
Singapore
South Korea Australia
2.0%
New Zealand
Japan Taiwan
0.0%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0%
-2.0%
2010 Mobile Penetration Rate (%)
Source: Company website, Bank reports, Frost & Sullivan analysis
9

10. Indonesia amongst others in the Region
While lags behind other countries, coverage expansion & speed
improvement in major cities are increasing
Broadband Penetration (fixed & wireless Mobile Data Average & Peak
dongles as % of pop) Broadband Speed (Kbps)
Avg Kbps Peak Kbps 7,792
37.9% 7,139
2010
4,990
13.3%
1,086 1,071
1.9% 518
Singapore Malaysia Indonesia Singapore Malaysia Indonesia
While fixed and mobile internet penetration is still relatively
low, we are now can find many hotspots in metropolitan areas
– most of them are free for use
Source: Frost & Sullivan, ITU, Internetstats, AMDA

11. “Everything” is online… are we ready?
As of 2010, broadband penetration is approx. 2% but is expected to reach around
~60% by 2016 driven mainly by “small-screen” mobile
Internet Penetration (Mn)
160
145.2
Millions
140 2010 2015
120
100
80 29.7%
60 3.6%
6.3% 39.6
40 21.8
CAGR: 2.8% 22.9
16.9 18.3
20 Data connections (Mn)
3.7 4.2
0
Singapore Malaysia Indonesia Thailand 167
CAGR 21.9%
62
2011 2016
Source: Company website, Bank reports, Frost & Sullivan analysis

12. How big is the market…
Indonesia has a very small online market revenue but potential for growth
is there…
Online Commerce Market Size, 2010 (USD Mn) Mobile Commerce Revenue Projection
(USD Bn)
1.03
Ads 67%
$8, 39% CAGR
Gaming
$11, 54% 0.1
Video/music
$2, 7%
2010 2011 2012 2013 2014 2015
• Indonesia potentially reach 10 times its current m-commerce industry
value by 2015 with a proper ecosystem and infrastructure,
technology, & regulatory framework
Source: Company website, Bank reports, Frost & Sullivan analysis

13. How big is the market…
E-enablement of Indonesia starting now
Market Size (US$ mn) Market Drivers
2,000
1,808 E-commerce Rakuten’s entry into Indonesia through JV
1,800
(transaction Other international players scouting for JVs –
revenues) Korean and US based
1,600
Indonesia online shopping % half of
650 Thailand
1,400
1,200 E-Commerce Digital Many app developers looking at Indonesia as
Content a base for global development
Ecosystem enablers Huge interest from local entrepreneurs
1,000 378
Difficulty in monetization
Digital Content
800
Ecosystem Payment mechanisms still a concern in
600 enablers Indonesia
Mobile payments – issues in regulation
400 349
780
120
200 57
172
0
2010 2015
Source: Company website, Bank reports, Frost & Sullivan analysis

14. Some key takeaway…
Demand is As the market has shown, the demand for “everything online” is
there..are there – from a simple browsing to mobile payment & transaction.
we ready? The next question: Are we ready? In terms of basic infrastructure,
market education, human competency, and market readiness
Who drives “CAPEX” is key function in delivering good-experience on data
the centric services i.e. cross platform, cross devices, cross
“CAPEX”? geographical areas
The next question: Who drives the budget? As almost all of
Indonesian operators are in majority owned by foreign investment
and budget allocation is certainly governed by interest of the major
shareholders

15. See you somewhere…online