Telkom Indonesia (TLK) 6-K Current report (foreign)

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 March, 2021

Perusahaan Perseroan (Persero)

PT Telekomunikasi Indonesia Tbk

(Exact name of Registrant as specified in its charter)

Telecommunications Indonesia

(A state-owned public limited liability Company)

(Translation of registrant’s name into English)

Jl. 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 ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ¨No þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ¨No þ

Perusahaan Perseroan (Persero)

PT Telekomunikasi Indonesia Tbk. and its subsidiaries

Consolidated financial statements

as of March 31, 2021 (unaudited) and for the three months period

then ended (unaudited)

Statement of the Board of Directors

regarding the Board of Director’s Responsibility for

Consolidated Financial Statements as of March 31, 2021

and for the three-months period ended (unaudited)

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk and its Subsidiaries

On behalf of the Board of Directors, we undersigned:

1.	Name	:	Ririek Adriansyah
	Business Address	:	Jl. Japati No.1 Bandung 40133
	Address	:	Jl. Karang Tengah Raya Pertanian I/99 RT 005RW 004 Kelurahan Lebak Bulus, Kecamatan Cilandak, Jakarta Selatan
	Phone	:	(022) 452 7101
	Position	:	President Director
		:
2.	Name	:	Heri Supriadi
	Business Address	:	Jl. Japati No.1 Bandung 40133
	Address	:	Jl. Rancamayar No. 18 RT001 RW 008 Kelurahan Gumuruh Kecamatan Batununggal, Bandung
	Phone	:	(022) 452 7201/ 021 520 9824
	Position	:	Director of Finance and Risk Management

We hereby state as follows:

1.	We are responsible for the preparation and presentation of the consolidated financial statement of PT Telekomunikasi Indonesia Tbk (the “Company”) and its subsidiaries;
2.	The Company and its subsidiaries’ consolidated financial statement have been prepared and presented in accordance with Indonesian financial accounting standards;
3.	All information has been fully and correctly disclosed in the Company and its subsidiaries’ consolidated financial statement;
4.	The Company and its subsidiaries’ consolidated financial statement do not contain false material information or facts, nor do they omit any material information or facts;
5.	We are responsible for the Company and its subsidiaries’ internal control system.

This statement is considered to be true and correct.

Jakarta, June 28, 2021

/s/ Ririek Adriansyah Ririek Adriansyah President Director /s/ Heri Supriadi Heri Supriadi Director of Finance and Risk Management

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2021 AND FOR THE THREE MONTHS PERIOD THEN ENDED

(UNAUDITED)

TABLE OF CONTENTS

	Page
Statement of the Board of Directors
Consolidated Statement of Financial Position	1
Consolidated Statement of Profit or Loss and Other Comprehensive Income	2
Consolidated Statement of Changes in Equity	3-4
Consolidated Statement of Cash Flows	5
Notes to the Consolidated Financial Statements	6-121

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of March 31, 2021 (unaudited) and December 31, 2020 (audited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

	Notes	March 31, 2021	December 31, 2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents	3,33,38	31,729	20,589
Other current financial assets	4,33,38	1,198	1,303
Trade receivables
Related parties	5,33,38	1,473	1,644
Third parties	5	10,907	9,695
Contract assets	6,33,38	1,098	1,036
Other receivables	38	278	214
Inventories	7	901	983
Contract cost	9	531	454
Prepaid taxes	28a	2,863	3,170
Claim for tax refund	28b	745	854
Other current assets	8,33	6,340	6,561
Total Current Assets		58,063	46,503
NON-CURRENT ASSETS
Contract assets	6,33,38	209	203
Long-term investments in financial instruments	10,38	4,307	4,045
Long-term investments in associate	11	176	192
Contract cost	9	1,429	1,254
Property and equipment	12,36	159,887	160,923
Right of use assets	13	17,388	18,566
Intangible assets	15	6,941	6,846
Deferred tax assets - net	28f	3,533	3,578
Other non-current assets	14,28,33,38	5,915	4,833
Total Non-current Assets		199,785	200,440
TOTAL ASSETS		257,848	246,943
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables	16,38
Related parties	33	874	928
Third parties		15,137	16,071
Contract liabilities	18a,33	7,223	7,834
Other payables	38	711	578
Taxes payable	28c	4,568	2,713
Accrued expenses	17,33,38	14,521	14,265
Customers deposits	33	2,500	2,024
Short-term bank loans	19a,33,38	12,191	9,934
Current maturities of long-term borrowings	19b,33,38	8,381	9,350
Current maturities of lease liabilities	13,38	6,451	5,396
Total Current Liabilities		72,557	69,093
NON-CURRENT LIABILITIES
Deferred tax liabilities - net	28f	692	561
Contract liabilities	18b,33	1,103	1,004
Long service award provisions	32	1,252	1,254
Pension benefits and other post-employment
benefits obligations	31	13,133	12,976
Long-term loans and other borrowings	20,33,38	33,418	30,561
Lease liabilities	13,38	7,567	10,221
Other liabilities		228	384
Total Non-current Liabilites		57,393	56,961
TOTAL LIABILITIES		129,950	126,054
EQUITY
Capital stock	22	4,953	4,953
Additional paid-in capital		2,711	2,711
Other equity	23	467	374
Retained earnings
Appropriated	30	15,337	15,337
Unappropriated		85,165	79,152
Net equity attributable to:
Owners of the parent company		108,633	102,527
Non-controlling interest	21	19,265	18,362
TOTAL EQUITY		127,898	120,889
TOTAL LIABILITIES AND EQUITY		257,848	246,943

The accompanying notes form an integral part of these consolidated financial statements.

1

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

	Notes	2021	2020
REVENUES	24,33	33,945	34,194
COST AND EXPENSES
Operation, maintenance, and telecommunication
service expenses	26,33	(8,452)	(8,252)
Depreciation and amortization expenses	12,13,15	(7,286)	(6,849)
Personnel expenses	25	(3,500)	(3,451)
Interconnection expenses	33	(1,136)	(1,519)
General and administrative expenses	27,33	(1,293)	(1,572)
Marketing expenses	33	(755)	(641)
Gain on foreign exchange - net		78	205
Other income (expenses) - net		98	(186)
OPERATING PROFIT		11,699	11,929
Finance income	33	153	219
Finance cost	33	(982)	(1,215)
Share of loss of associated companies - net	11	(54)	(9)
PROFIT BEFORE INCOME TAX		10,816	10,924
INCOME TAX (EXPENSE) BENEFIT	28d
Current		(2,243)	(2,831)
Deferred		(186)	208
		(2,429)	(2,623)
PROFIT FOR THE PERIOD		8,387	8,301
OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income to be reclassified to profit
or loss in subsequent periods:
Foreign currency translation	23	93	419
Share of other comprehensive income of associated companies	11	-	4
Other comprehensive income not to be reclassified to profit
or loss in subsequent periods:
Defined benefit actuarial losses - net	31	(1)	-
Other comprehensive income - net		92	423
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		8,479	8,724
Profit for the period attributable to:
Owners of the parent company		6,014	5,862
Non-controlling interests	21	2,373	2,439
		8,387	8,301
Total comprehensive income for the period attributable to:
Owners of the parent company		6,106	6,285
Non-controlling interests		2,373	2,439
		8,479	8,724
BASIC EARNING PER SHARE
(in full amount)	29
Net income per share		60.71	59.17
Net income per ADS (100 Series B shares per ADS)		6,070.93	5,917.49

The accompanying notes form an integral part of these consolidated financial statements.

2

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

		Attributable to owners of the parent company
					Retained earnings
Description	Notes	Capital stock	Additional paid-in capital	Other equity	Appropriated	Unappropriated	Net	Non-controlling interests	Total equity
Balance, January 1, 2021		4,953	2,711	374	15,337	79,152	102,527	18,362	120,889
Transaction under common control		-	-	-	-	-	-	-	-
Adjustment of non-controlling interest		-	-	-	-	-	-	(70)	(70)
Cash dividends	30	-	-	-	-	-	-	(1,400)	(1,400)
Profit for the period	21	-	-	-	-	6,014	6,014	2,373	8,387
Other comprehensive income		-	-	93	-	(1)	92	-	92
Balance, March 31, 2021		4,953	2,711	467	15,337	85,165	108,633	19,265	127,898

The accompanying notes form an integral part of these consolidated financial statements.

3

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

		Attributable to owners of the parent company
					Retained earnings
Description	Notes	Capital stock	Additional paid-in capital	Other equity	Appropriated	Unappropriated	Net	Non-controlling interests	Total equity
Balance, December 31, 2019		4,953	2,711	408	15,337	76,152	99,561	17,689	117,250
The impact of applying new accounting standards		-	-	(48)	-	649	601	(47)	554
Balance, January 1, 2020		4,953	2,711	360	15,337	76,801	100,162	17,642	117,804
Adjustment of non-controlling interest		-	-	-	-	-	-	69	69
Cash dividends	30	-	-	-	-	-	-	(50)	(50)
Profit for the period	21	-	-	-	-	5,862	5,862	2,439	8,301
Other comprehensive income		-	-	419	-	4	423	-	423
Balance, March 31, 2020		4,953	2,711	779	15,337	82,667	106,447	20,100	126,547

The accompanying notes to the consolidated financial statements, form an integral part ofthese consolidated financial statements taken as a whole.

4

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

	Notes	2021	2020
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers and other operators		32,141	29,273
Cash receipts for tax refund		650	1,816
Cash receipts from finance income		153	209
Cash payments for expenses		(9,070)	(8,625)
Cash payments for corporate and final income taxes		(735)	(1,364)
Cash payments to employees		(2,534)	(2,492)
Cash payments for finance costs		(1,080)	(1,229)
Cash payments for short-term and low-value lease asset	13	(1,007)	(909)
Cash receipts (payments) for Value Added Taxes - net		(477)	365
Cash receipts (payments) from others - net		(608)	559
Net cash provided by operating activities		17,433	17,603
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property and equipment	12	147	45
Proceeds from insurance claims	12	85	3
Dividen received from associated company	11	-	5
Purchase of property and equipment	12,40	(5,974)	(4,051)
Purchase of long-term investment in financial instrument	10	(301)	(52)
Purchase of intangible assets	15,40	(606)	(736)
Proceeds from (placement in) other current financial assets - net		102	(411)
Additional contribution on long-term investments in associates	11	(42)	-
Decrease (increase) in advances and other assets		(174)	108
Net cash used in investing activities		(6,763)	(5,089)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans and other borrowings	19,20	10,112	1,533
Repayments of loan and other borrowings	19,20	(5,979)	(6,064)
Cash dividends paid to non-controlling interests of subsidiaries	21	(1,400)	(50)
Repayment of principal portion of lease liabilities	13	(2,366)	(2,269)
Net cash used in financing activities		367	(6,850)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		11,037	5,664
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS		103	459
EXPECTED CREDIT LOSSES		(0)	(0)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	3	20,589	18,242
CASH AND CASH EQUIVALENTS AT END OF YEAR	3	31,729	24,365

The accompanying notes form an integral part of these consolidated financial statements.

5

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1. GENERAL

a. Establishment and general information

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. (the “Company”) was originally part of “Post en Telegraafdienst”, which was established and operated commercially in 1884 under the framework of Decree No. 7 dated March 27, 1884 of the Governor General of the Dutch Indies. Decree No. 7 was published in State Gazette No. 52 dated April 3, 1884.

In 1991, the status of the Company was changed into a state-owned limited liability corporation (“Persero”) based on Government Regulation No. 25/1991. The ultimate parent of the Company is the Government of the Republic of Indonesia (the “Government”) (Notes 1c and 22).

The Company was established based on notarial deed No. 128 dated September 24, 1991 of Imas Fatimah, S.H. The deed of establishment was approved by the Ministry of Justice of the Republic of Indonesia in its Decision Letter No. C2-6870.HT.01.01.Th.1991 dated November 19, 1991 and was published in State Gazette No. 5 dated January 17, 1992, Supplement No. 210. The Company's Articles of Association have been amended several times, in 2019 changes were made to adjust the Company’s business activities based on the Indonesian Standard Business Classification (“KBLI”) and to increase the flexibility and independence of the Board of Commissioners in approving the Directors’ actions at a certain threshold as stated in notarial deeds No. 32 dated June 21, 2019 of Ashoya Ratam, S.H., M.Kn. Such amendments were accepted and approved by the Ministry of Law and Human Rights of the Republic of Indonesia (“MoLHR”) in its letter No. AHU-0032595.AH.01.02 dated June 24, 2019.

In 2020, the Company, in accordance with its Articles of Association, amended its Company name to Limited Liability Company (Persero) PT Telekomunikasi Indonesia Tbk. or abbreviated as PT Telkom Indonesia (Persero) Tbk. in the Indonesia Stock Exchange.

At the 2019 Anuual General Meeting (“AGM”) of Stockholders of the Company, the Company made changes to the composition of the Company's management, as stated in the notarial Deed No. 12 dated July 10, 2020 of Ashoya Ratam, S.H., Mkn.. The change in the composition of the management has been received by the MoLHR in its letter No. AHU-AH. 01.03-0291419 dated July 16, 2020.

In accordance with Article 3 of the Company’s Articles of Association, the scope of its activities is to provide telecommunication network and telecommunication and information services, and to optimize the Company’s resources to provide high quality and competitive goods and/or services to gain/pursue profit in order to increase the value of the Company with applied the Limited Company principle. In regard to achieving its objectives, the Company is involved in the following activities:

i. Main business:

(a)  Planning, building, providing, developing, operating, marketing or selling or leasing, and maintaining telecommunications and information networks in a broad sense in accordance with prevailing regulations.

(b) Planning, developing, providing, marketing or selling, and improving telecommunications and information services in a broad sense in accordance with prevailing regulations.

(c) Investing including equity capital in other companies in line with achieving the purposes and objectives of the Company.

ii. Supporting business:

(a) Providing payment transactions and money transferring services through telecommunications and information networks.

(b)  Performing activities and other undertakings in connection with the optimization of the Company's resources, which among others, include the utilization of the Company's property and equipment and moving assets, information systems, education and training, repairs and maintenance facilities.

(c)  Collaborating with other parties in order to optimize the information, communication or technology resources owned by other parties as service provider in information, communication and technology industry as to achieve the purposes and objectives of the Company.

6

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1. GENERAL (continued)

a. Establishment and general information (continued)

The Company’s head office is located at Jalan Japati No. 1, Bandung, West Java.

The Company was granted several networks and/or services licenses by the Government which are valid for an unlimited period of time as long as the Company complies with prevailing laws and fulfills the obligation stated in those licenses. For every license issued by the Ministry of Communication and Information (“MoCI”), an evaluation is performed annually and an overall evaluation is performed every five years. The Company is obliged to submit reports of networks and/or services annually to the Indonesian Directorate General of Post and Informatics (“DGPI”), which replaced the previous Indonesian Directorate General of Post and Telecommunications (“DGPT”).

The reports comprise information such as network development progress, service quality standard achievement, numbers of customers, license payment, and universal service contribution, while for internet telephone services for public purpose, internet interconnection service, and internet access service, there is additional information required such as operational performance, customer segmentation, traffic, and gross revenue.

Details of these licenses are as follows:

License	License No.	Type of services	Grant date/latest renewal date
License of electronic money issuer	Bank Indonesia License No. 11/432/DASP	Electronic money	July 3, 2009
License of money remittance	Bank Indonesia License No. 11/23/bd/8	Money remittance service	August 5, 2009
License to operate internet telephone services for public purpose	127/KEP/DJPPI/ KOMINFO/3/2016	Internet telephone services for public purpose	March 30, 2016
License to operate fixed domestic long distance network	839/KEP/M.KOMINFO/ 05/2016	Fixed domestic long distance and basic telephone services network	May 16, 2016
License to operate fixed closed network	844/KEP/M.KOMINFO/ 05/2016	Fixed closed network	May 16, 2016
License to operate fixed international network	846/KEP/M.KOMINFO/ 05/2016	Fixed international and basic telephone services network	May 16, 2016
License to operate circuit switched based local fixed line network	948/KEP/M.KOMINFO/ 05/2016	Circuit switched based local fixed line network	May 31, 2016
License to operate data communication system services	191/KEP/DJPPI/ KOMINFO/10/2016	Data communication system services	October 31, 2016
License to operate internet service provider	2176/KEP/M.KOMINFO/ 12/2016	Internet service provider	December 30, 2016
License to operate content service provider	1040/KEP/M.KOMINFO/ 16/2017	Content service provider	May 16, 2017
License for the implementation of internet interconnection services	1004/KEP/M.KOMINFO/ 2018	Interconnection services	December 26, 2018

7

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1. GENERAL (continued)

b. Company’s Board of Commissioners, Directors, Audit Committee, Corporate Secretary, Internal Audit, and Employees

i.Board of Commissioners and Directors

Based on resolutions made at AGM of Stockholders of the Company as covered by notarial deed No. 12 of Ashoya Ratam., S.H., M.Kn., dated July 10, 2020, the composition of the Company’s Boards of Commissioners and Directors as of March 31 2021, and December 31, 2020, respectively, were as follows:

	March 31, 2021	December 31, 2020
President Commissioner/
Independent Commissioner	Rhenald Kasali	Rhenald Kasali
Commissioner	Alex Denni	Alex Denni
Commissioner	Rizal Mallarangeng	Rizal Mallarangeng
Commissioner	Ahmad Fikri Assegaf	Ahmad Fikri Assegaf
Commissioner	Ismail	Ismail
Commissioner	Marcelino Rumambo Pandin	Marcelino Rumambo Pandin
Independent Commissioner	Marsudi Wahyu Kisworo	Marsudi Wahyu Kisworo
Independent Commissioner	Wawan Iriawan	Wawan Iriawan
Independent Commissioner	Chandra Arie Setiawan	Chandra Arie Setiawan
President Director	Ririek Adriansyah	Ririek Adriansyah
Director of Finance	Heri Supriadi	Heri Supriadi
Director of Digital Business	Muhamad Fajrin Rasyid	Muhamad Fajrin Rasyid
Director of Strategic Portfolio	Budi Setyawan Wijaya	Budi Setyawan Wijaya
Director of Enterprise and Business
Service	Edi Witjara	Edi Witjara
Director of Wholesale and
International Services	Dian Rachmawan	Dian Rachmawan
Director of Human Capital
Management	Afriwandi	Afriwandi
Director of Network, Information
Technology and Solution	Herlan Wijanarko	Herlan Wijanarko
Director of Consumer Service	FM Venusiana R	FM Venusiana R

ii.Audit Committee, Corporate Secretary, and Internal Audit

The composition of the Company’s Audit Committee, Corporate Secretary, and Internal Audit as of March 31 2021, and December 31, 2020, were as follows:

	March 31, 2021	December 31, 2020
Chairman	Chandra Arie Setiawan	Chandra Arie Setiawan
Member	Marsudi Wahyu Kisworo	Marsudi Wahyu Kisworo
Member	Wawan Iriawan	Wawan Iriawan
Member	Marcelino Rumambo Pandin	Marcelino Rumambo Pandin
Member	Sarimin Mietra Sardi	Sarimin Mietra Sardi
Member	Ahmad Fikri Assegaf	Ahmad Fikri Assegaf
Member	Emmanuel Bambang Suyitno	Emmanuel Bambang Suyitno
Corporate Secretary	Andi Setiawan	Andi Setiawan
Internal Audit	Harry Suseno Hadisoebroto	Harry Suseno Hadisoebroto

iii.Employees

As of March 31 2021, and December 31, 2020, the Company and subsidiaries (“Group”) had 24,276 employees and 25,348 employees, respectively.

8

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1. GENERAL (continued)

c. Public offering of securities of the Company

The Company’s shares prior to its Initial Public Offering (“IPO”) totalled 8,400,000,000, consisting of 8,399,999,999 Series B shares and 1 Series A Dwiwarna share, and were wholly-owned by the Government. On November 14, 1995, 933,333,000 new Series B shares and 233,334,000 Series B shares owned by the Government were offered to the public through an IPO and listed on the Indonesia Stock Exchange (“IDX”) and 700,000,000 Series B shares owned by the Government were offered to the public and listed on the New York Stock Exchange (“NYSE”) and the London Stock Exchange (“LSE”), in the form of American Depositary Shares (“ADS”). There were 35,000,000 ADS and each ADS represented 20 Series B shares at that time.

In December 1996, the Government had a block sale of its 388,000,000 Series B shares, and in 1997, distributed 2,670,300 Series B shares as incentive to the Company’s stockholders who did not sell their shares within one year from the date of the IPO. In May 1999, the Government further sold 898,000,000 Series B shares.

To comply with Law No. 1/1995 on Limited Liability Companies, at the AGM of Stockholders of the Company on April 16, 1999, the Company’s stockholders resolved to increase the Company’s issued share capital by the distribution of 746,666,640 bonus shares through the capitalization of certain additional paid-in capital, which was made to the Company’s stockholders in August 1999. On August 16, 2007, Law No. 1/1995 on Limited Liability Companies was amended by the issuance of Law No. 40/2007 on Limited Liability Companies which became effective on the same date. Law No. 40/2007 has no effect on the public offering of shares of the Company. The Company has complied with Law No. 40/2007.

In December 2001, the Government had another block sale of 1,200,000,000 shares or 11.9% of the total outstanding Series B shares. In July 2002, the Government further sold a block of 312,000,000 shares or 3.1% of the total outstanding Series B shares.

At the AGM of Stockholders of the Company held on July 30, 2004, the minutes of which are covered by notarial deed No. 26 of A. Partomuan Pohan, S.H., LLM., the Company’s stockholders approved the Company’s 2-for-1 stock split for Series A Dwiwarna and Series B share. The Series A Dwiwarna share with par value of Rp500 per share was split into 1 Series A Dwiwarna share with par value of Rp250 per share and 1 Series B share with par value of Rp250 per share. The stock split resulted in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna share and 39,999,999,999 Series B shares to 1 Series A Dwiwarna share and 79,999,999,999 Series B shares, and the issued capital stock from 1 Series A Dwiwarna share and 10,079,999,639 Series B shares to 1 Series A Dwiwarna share and 20,159,999,279 Series B shares. After the stock split, each ADS represented 40 Series B shares.

During the Extraordinary General Meeting (“EGM”) held on December 21, 2005 and the AGMs held on June 29, 2007, June 20, 2008, and May 19, 2011, the Company’s stockholders approved phase I, II, III, and IV plan, respectively, of the Company’s program to repurchase its issued Series B shares.

During the period December 21, 2005 to June 20, 2007, the Company had bought back 211,290,500 shares from the public (stock repurchase program phase I). On July 30, 2013, the Company has sold all such shares.

At the AGM held on April 19, 2013 as covered by notarial deed No. 38 dated April 19, 2013 of Ashoya Ratam, S.H., M.Kn., the stockholders approved the changes to the Company’s plan on the treasury stock acquired under phase III.

9

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1. GENERAL (continued)

c. Public offering of securities of the Company (continued)

At the AGM held on April 19, 2013, the minutes of which were covered by notarial deed No. 38 of Ashoya Ratam, S.H., M.Kn., the stockholders approved the Company’s 5-for-1 stock split for Series A Dwiwarna and Series B shares. Series A Dwiwarna share with par value of Rp250 per share was split into 1 Series A Dwiwarna share with par value of Rp50 per share and 4 Series B shares with par value of Rp50 per share. The stock split resulted in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna and 79,999,999,999 Series B shares to 1 Series A Dwiwarna and 399,999,999,999 Series B shares. The issued capital stock increase from 1 Series A Dwiwarna and 20,159,999,279 Series B shares to 1 Series A Dwiwarna and 100,799,996,399 Series B shares. After the stock split, each ADS represented 200 Series B shares. Effective from October 26, 2016, the Company change the ratio of Depositary Receipt from 1 ADS representing 200 series B shares to become 1 ADS representing 100 series B shares (Note 22). Profit per ADS information have been retrospectively adjusted to reflect the changes in the ratio of ADS.

On May 16 and June 5, 2014, the Company deregistered from Tokyo Stock Exchange (“TSE”) and delisted from the LSE, respectively.

As of March 31, 2021, all of the Company’s Series B shares are listed on the IDX and 38,161,127 ADS shares are listed on the NYSE (Note 22).

On June 16, 2015, the Company issued Continuous Bonds I Telkom Phase I 2015, with a nominal amount Rp2,200 billion for Series A, a seven-year period, Rp2,100 billion for Series B, a ten-year period, Rp1,200 billion for Series C, a fifteen-year period and Rp1,500 billion for Series D, a thirty-year period, respectively which are listed on the IDX (Note 20b.i).

On December 21, 2015, the Company sold the remaining shares of treasury shares phase III.

On June 29, 2016, the Company sold the treasury shares phase IV.

At the AGM held on April 27, 2018, which were covered by notarial deed No. 54 of Ashoya Ratam, S.H., M.Kn., the stockholders approved for cancellation 1,737,779,800 shares of treasury stock by reduced the Company’s capital stock.

10

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1. GENERAL (continued)

d. Subsidiaries

As of March 31, 2021 and December 31, 2020, the Company has consolidated the following directly or indirectly owned subsidiaries (Notes 2b and 2d):

i.  Direct subsidiaries:

					Total assets before
	Nature of business/date of	Year of start	Percentage of ownership*		elimination
Subsidiary/place of	Incorporation or acquisition	of commercial	March 31,	December 31,	March 31,	December 31,
incorporation	by the Company	operations	2021	2020	2021	2020
PT Telekomunikasi	Telecommunication - provides	1995	65	65	107,596	103,652
Selular	telecommunication facilities
("Telkomsel"),	and mobile celuller
Jakarta, Indonesia	services using Global
	Systems for Mobile
	Communication ("GSM")
	technology/
	May 26, 1995
PT Dayamitra	Telecommunication/	1995	100	100	37,868	25,368
Telekomunikasi	May 17, 2001
("Dayamitra"),
Jakarta, Indonesia
PT Multimedia	Network telecommunication	1998	100	100	17,545	17,708
Nusantara	services and multimedia/
("Metra"),	May 9, 2003
Jakarta, Indonesia
PT Telekomunikasi	Telecommunication/	1995	100	100	12,504	12,187
Indonesia International	July 31, 2003
(“TII”),
Jakarta, Indonesia
PT Graha Sarana Duta	Leasing of offices and	1982	100	100	6,115	6,163
("GSD"),	providing building
Jakarta, Indonesia	management and
	maintenance services, civil
	consultant and developer/
	April 25, 2001
PT Telkom Satelit	Telecomunication - provides	1996	100	100	4,945	4,484
Indonesia	satellite communication
("Telkomsat"),	system, services and
Jakarta, Indonesia	facilities/
	September 28, 1995
PT Telkom Akses	Construction, service and	2013	100	100	3,962	4,154
(“Telkom Akses”),	trade in the field of
Jakarta, Indonesia	telecommunication/
	November 26, 2012
PT PINS Indonesia	Telecommunication	1995	100	100	1,653	1,868
(“PINS”),	construction and services/
Jakarta, Indonesia	August 15, 2002
PT Metra-Net	Multimedia portal service/	2009	100	100	1,549	1,320
(“Metra-Net”),	April 17, 2009
Jakarta, Indonesia

*Percentage of ownership amounting to 99.99% is presented with rounding 100%.

11

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1. GENERAL (continued)

d. Subsidiaries (continued)

i.  Direct subsidiaries (continued):

					Total assets before
	Nature of business/date of	Year of start	Percentage of ownership*		elimination
Subsidiary/place of	Incorporation or acquisition	of commercial	March 31,	December 31,	March 31,	December 31,
incorporation	by the Company	operations	2021	2020	2021	2020
PT Infrastruktur	Construction, service and	2014	100	100	1,119	1,074
Telekomunikasi	trade in the field of
Indonesia	telecommunication/
(“Telkom Infratel”),	January 16, 2014
Jakarta, Indonesia
PT Napsindo Primatel	Telecommunication -	1999; ceased	60	60	5	5
Internasional	provides Network Access	operations on
(“Napsindo”),	Point (NAP), Voice Over	January 13,
Jakarta, Indonesia	Data (VOD) and other	2006
	related services/
	December 29, 1998

*Percentage of ownership amounting to 99.99% is presented with rounding 100%.

ii.  Indirect subsidiaries:

					Total assets before
	Nature of business/date of	Year of start	Percentage of ownership*		elimination
Subsidiary/place of	Incorporation or acquisition	of commercial	March 31,	December 31,	March 31,	December 31,
incorporation	by the Company	operations	2021	2020	2021	2020
PT Sigma Cipta Caraka	Information technology	1988	100	100	5,765	6,031
(“Sigma”),	service - system
Tangerang, Indonesia	implementation and
	integration service,
	outsourcing and software
	license maintenance/
	May 1,1987
PT Metra Digital	Trading and/or providing	2013	100	100	3,450	3,461
Investama	service related to
(“MDI”),	information and
Jakarta, Indonesia	tehnology, multimedia,
	entertainment and
	investment/
	January 8, 2013
Telekomunikasi	Telecommunication/	2008	100	100	3,434	3,320
Indonesia	December 6, 2007
International Pte. Ltd.,
("Telin Singapore"),
Singapore
Telekomunikasi	Telecommunication/	2010	100	100	3,106	2,652
Indonesia	December 8, 2010
International Ltd,
("Telin Hong Kong"),
Hong Kong
PT Infomedia Nusantara	Data and information	1984	100	100	2,522	2,390
(“Infomedia”),	service - provides
Jakarta, Indonesia	telecommunication
	information services and
	other information services
	in the form of print and
	electronic media and call
	center services/
	September 22,1999
PT Telkom Landmark	Service for property	2012	55	55	2,261	2,204
Tower	development and
(“TLT”),	management/
Jakarta, Indonesia	February 1, 2012
PT Metra Digital	Directory information	2013	100	100	1,390	1,115
Media	services/
(“MD Media”),	January 22, 2013
Jakarta, Indonesia

*Percentage of ownership amounting to 99.99% is presented with rounding 100%.

12

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1. GENERAL (continued)

d. Subsidiaries (continued)

ii.  Indirect subsidiaries (continued):

					Total assets before
	Nature of business/date of	Year of start	Percentage of ownership*		elimination
Subsidiary/place of	Incorporation or acquisition	of commercial	March 31,	December 31,	March 31,	December 31,
incorporation	by the Company	operations	2021	2020	2021	2020
PT Finnet Indonesia	Information technology	2006	60	60	1,305	1,371
(“Finnet”),	services/
Jakarta, Indonesia	October 31, 2005
PT Melon	Digital content exchange	2010	100	100	1,126	848
(“Melon”),	hub services/
Jakarta, Indonesia	November 14, 2016
PT Persada Sokka	Providing telecommunication	2008	95	95	888	824
Tama	network infrastucture/
("PST"),	February 19, 2019
Jakarta, Indonesia
Telekomunikasi	Telecommunication/	2012	100	100	780	719
Indonesia	September 11, 2012
International
(“Telin TL”) S.A.,
Dili, Timor Leste
TS Global Network	Satellite services/	1996	70	70	641	669
Sdn. Bhd.	December 14, 2017
(“TSGN”),
Petaling Jaya,
Malaysia
PT Telkomsel Mitra	Bussiness management	2019	100	100	594	594
Inovasi	consulting and capital
(“TMI”),	venture services/
Jakarta, Indonesia	January 18, 2019
PT Swadharma	System Integrator Services/	2001	51	51	567	577
Sarana	April 2, 2018
Informatika
(“SSI”),
Jakarta, Indonesia
PT Administrasi	Health insurance	2002	100	100	529	480
Medika	administration services/
(“Ad Medika”),	February 25, 2010
Jakarta, Indonesia
PT Nusantara	Service and trading/	2014	100	100	312	316
Sukses Investasi	September 1, 2014
(“NSI”),
Jakarta, Indonesia
PT Graha Yasa	Tourism service/	2012	51	51	287	289
Selaras	April 27, 2012
(”GYS”),
Jakarta, Indonesia
PT Nutech Integrasi	System integrator/	2001	60	60	155	137
(“Nutech”),	December 13, 2017
Jakarta, Indonesia

*Percentage of ownership amounting to 99.99% is presented with rounding 100%.

13

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1. GENERAL (continued)

d.Subsidiaries (continued)

ii.  Indirect subsidiaries (continued):

					Total assets before
	Nature of business/date of	Year of start	Percentage of ownership*		elimination
Subsidiary/place of	Incorporation or acquisition	of commercial	March 31,	December 31,	March 31,	December 31,
incorporation	by the Company	operations	2021	2020	2021	2020
Telekomunikasi	Telecomunication	2014	100	100	110	115
Indonesia	December 11, 2013
International Inc.,
(“Telkom USA”),
Los Angeles, USA
Telekomunikasi	Telecommunication/	2013	100	100	105	88
Indonesia	January 9, 2013
International Pty Ltd,
(“Telkom Australia”),
Sydney, Australia
PT Metraplasa	Network & e-commerce	2012	60	60	84	260
(“Metraplasa”),	services/
Jakarta, Indonesia	April 9, 2012
Telekomunikasi	Telecommunication/	2013	70	70	35	39
Indonesia Intl	July 2, 2013
(Malaysia) Sdn. Bhd
(“Telin Malaysia”),
Malaysia
PT Satelit	Satellite services/	2013	100	100	9	14
Multimedia	March 25, 2013
Indonesia
(“SMI”),
Jakarta, Indonesia

*Percentage of ownership amounting to 99.99% is presented with rounding 100%.

e. Completion and authorization for the issuance of the consolidated financial statements

The Company’s management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Indonesian Financial Accounting Standards, which have been completed and authorized for issuance by the Board of Directors of the Company on June 28, 2021.

14

Table of Content These consolidated financial statements are originally issued in the Indonesian language.

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Period Ended March 31, 2021 and 2020 (unaudited)

(Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements of the Company and subsidiaries (collectively referred to as “the Group”) have been prepared in accordance with Financial Accounting Standards ("Standar Akuntansi Keuangan” or “SAK") including Indonesian Statement of Financial Accounting Standards ("Pernyataan Standar Akuntansi Keuangan" or “PSAK”) and interpretation of Financial Accounting Standards ("Interpretasi Standar Akuntansi Keuangan" or “ISAK”) in Indonesia published by the Financial Accounting Standards Board of  Institute  of  Indonesian  Chartered  Accountants  and  Regulation  No. VIII.G.7 of the Capital Market and Financial Institution Supervisory Agency (“Bapepam-LK”) regarding the Presentation and Disclosure of Financial Statements of Issuers or Public Companies, enclosed in the decision letter KEP-347/BL/2012.

a. Basis of preparation of consolidated financial statements

The consolidated financial statements, except for the consolidated statements of cash flows, are prepared on the accrual basis. The measurement basis used is historical cost, except for certain accounts which are measured using the basis mentioned in the relevant notes herein.

The consolidated statements of cash flows are prepared using the direct method and present the changes in cash and cash equivalents from operating, investing and financing activities.

Figures in the consolidated financial statements are presented and rounded to billions of Indonesian rupiah (“Rp”) and millions of US$, unless otherwise stated. For the figures in the consolidated financial statements which still contain values but below Rp1 billion and US$ 1 million, are presented with zeros.

New accounting standards

On January 1, 2021, the Group adopted the new and revised statement of financial accounting standards and interpretations of financial accounting standards effective from that date. Adjustments to the Group's accounting policies have been made as required, in accordance with the transitional provisions of the respective standards and interpretations. The adoption of the new and revised standards and interpretations did not result in major changes to the Group's accounting policies and had no material effect on the amounts reported for the current or prior financial year:

i. Amendment to PSAK 22: Business Combination

ii. Amendment to PSAK 55: Financial Instruments: Recognition and Measurement, Amendment to PSAK 60: Financial Instruments: Disclosures, Amendment to PSAK 71: Financial Instruments,

Amendments to PSAK 62: Insurance Contracts and Amendments to PSAK 73: Leases on Interest Rate Reference Reform - Phase 2

iii. Amendment to PSAK 73: Leases on Lease Concessions related to COVID-19 after 30 June 2021

Accounting standards issued but not yet effective

Effective January 1, 2022

i. Amendment to PSAK 22: Business Combinations

This amendment regulates the reference to the Conceptual Framework by clarifying the interactions between PSAK 22, PSAK 57, ISAK 30 and the Conceptual Framework for Financial Reporting.

ii. Amendments to PSAK 57: Provisions, Contingent Liabilities, and Contingent Assets

This amendment clarifies the cost of fulfilling a contract in relation to determining whether a contract is a burdensome contract.

iii. Amendment to PSAK 71: Financial Instruments

This amendment clarifies the fee (compensation) recognized by the borrower in connection with the derecognition of a financial liability.

iv. Amendment to PSAK 73: Leases

This amendment clarifies clarifying the me